WASHINGTON THE ACTING SECRETARY OF THE ARMY WAS SUSPENDED FROM HIS JOB AFTER HE WAS ACCUSED OF SHOPLIFTING A WOMAN'S BLOUSE AND SKIRT AT AN ARMY PX JOHN SHANNON A DECORATED VIETNAM VETERAN WHO HAS SERVED AS THE INTERIM CIVILIAN HEAD OF THE ARMY SINCE JANUARY WAS PLACED ON ADMINISTRATIVE LEAVE AFTER BEING APPREHENDED THURSDAY BY A DETECTIVE AT THE STORE AT FORT MEYER THE BASE NEAR THE PENTAGON WHERE JOINT CHIEFS CHAIRMAN GEN COLIN POWELL AND OTHER MEMBERS OF THE TOP BRASS LIVE MR SHANNON COULDN'T BE REACHED TO COMMENT SEPARATELY A RABBI SPECIALIZING IN HOLOCAUST RESEARCH SAID THAT THE FATHER OF THE NOMINEE TO BE CHAIRMAN OF THE JOINT CHIEFS OF STAFF WAS A NAZI COLLABORATOR DURING WORLD WAR II RABBI MARVIN HIER FOUNDER OF THE SIMON WIESENTHAL CENTER IN LOS ANGELES SAID THAT DMITRI SHALIKASHVILI THE FATHER OF ARMY GEN JOHN SHALIKASHVILI WORKED WITH THE GERMAN OCCUPIERS OF POLAND EARLY IN THE WAR AND LATER SERVED AS A MAJOR IN THE WAFFEN SS BUT OTHAR SHALIKASHVILI THE GENERAL'S OLDER BROTHER DISPUTED THE RABBI'S ALLEGATIONS I DON'T THINK HE WAS A NAZI COLLABORATOR MR SHALIKASHVILI SAID HE SAID HIS FATHER WAS DEDICATED TO THE CAUSE OF LIBERATING HIS NATIVE GEORGIA FROM THE SOVIET UNION AND JOINED FORCES WITH THE GERMANS TO FURTHER THAT AIM MY CLEAR PERCEPTION IS THAT HE DIED WITH A CLEAR CONSCIENCE IN 1978 HE SAID DEFENSE SECRETARY LES ASPIN SAID THAT GEN SHALIKASHVILI'S SUPERB RECORD SPEAKS FOR ITSELF AND THAT ALLEGATIONS ABOUT HIS FATHER'S HISTORY AREN'T RELEVANT THE ALLEGATIONS WERE REPORTED IN DEFENSE DAILY A TRADE PUBLICATION 9308300102 930830 INTERTAN PRIVATE PLACEMENT BARRIE ONTARIO INTERTAN INC SAID TWO UNDERWRITERS HAVE ORDERS FOR A PRIVATE PLACEMENT OF 60 MILLION CANADIAN DOLLARS US456 MILLION IN SPECIAL WARRANTS THEY ARE EXCHANGEABLE FOR INTERTAN 9 SUBORDINATED CONVERTIBLE DEBENTURES MATURING IN 2000 WITH A CONVERSION PRICE OF ABOUT 640 PER SHARE EARLIER THIS MONTH TANDY CORP FORT WORTH TEXAS AGREED TO ACQUIRE INTERTAN'S DEBT AND RESTRUCTURE IT AFTER INTERTAN'S BANKS DEMANDED REPAYMENT OF C54 MILLION THE RETAILER IS A MAJOR CUSTOMER OF TANDY IN COMPOSITE TRADING IN THE NEW YORK STOCK EXCHANGE ON FRIDAY INTERTAN SHARES CLOSED AT 5625 DOWN 25 CENTS 9308300101 930830 MARKETING & MEDIA MOLSON COS TO STOP USING CLINTON'S PICTURE IN BRITISH BEER ADS LONDON AP MOLSON COS WILL STOP USING PICTURES OF PRESIDENT CLINTON IN A BRITISH AD CAMPAIGN TO PROMOTE ITS SPECIAL DRY BEER THE CANADIAN BREWING COMPANY SAID SUNDAY EVEN THOUGH THE CAMPAIGN WAS IN KEEPING WITH MARKETING PRACTICES IN THE UK IT HAD CROSSED A LINE AND OFFENDED SOME SENSIBILITIES IN NORTH AMERICA AND AS A RESULT WE HAVE ELECTED TO WITHDRAW THE CAMPAIGN SAID CHARLES FREMES SENIOR VICE PRESIDENT FOR CORPORATE AND PUBLIC AFFAIRS OF THE TORONTO COMPANY THERE HAD BEEN NO COMPLAINTS FROM THE WHITE HOUSE MR FREMES SAID IN A TELEPHONE INTERVIEW THE MOLSON ADS FEATURED A LARGE PICTURE OF MR CLINTON OPPOSITE COPY THAT READ ONE OF THE THINGS THAT I'VE LEARNED THIS YEAR IS THAT A STRONG BEER CAN HAVE A REALLY CLEAN TASTE MY WIFE IS MORE OF A BEER DRINKER THAN I AM AND SHE'S THE ONE WHO FIRST COTTONED ON TO MOLSON SPECIAL DRY IN SMALL PRINT THE AD EXPLAINS THAT THE QUOTE IS FROM A LONDON BEER DRINKER NOT FROM MR CLINTON MR FREMES SAID MOLSON EXECUTIVES HAD SECOND THOUGHTS FOLLOWING NEWS STORIES LAST WEEK ABOUT THE ADS IN THE US THE PRESIDENT'S IMAGE CANNOT BE USED IN ADVERTISING I WANT TO BE CLEAR THAT WE HAVEN'T HAD ANY CONSUMER REACTION WE'RE TAKING THE PREEMPTIVE STRIKE IF YOU WILL OF HAVING OBSERVED THE REACTION ONCE IT IS OUT IN THE MARKETPLACE MOSTLY FROM MOLSON INTERNAL PEOPLE MR FREMES SAID 9308300100 930830 WHO'S NEWS HORMEL'S CEO KNOWLTON PLANS TO RESIGN POST BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL RICHARD L KNOWLTON WHO LED HORMEL FOODS CORP'S TRANSITION FROM MEATPACKER TO DIVERSIFIED FOODS PROCESSOR INTENDS TO STEP DOWN AS CHIEF EXECUTIVE OFFICER THIS FALL BUT WILL REMAIN CHAIRMAN MR KNOWLTON 61 YEARS OLD CONFIRMED OVER THE WEEKEND HIS SUCCESSION PLANS SAYING HE WILL STRONGLY RECOMMEND THAT PRESIDENT JOEL W JOHNSON BE NAMED CEO MR JOHNSON 50 JOINED THE COMPANY IN 1991 AFTER MORE THAN 20 YEARS WITH GENERAL FOODS UNITS OF PHILIP MORRIS COS ALTHOUGH HORMEL'S DIRECTORS HAVEN'T FORMALLY APPROVED THE CHANGES MR KNOWLTON HAS BEEN PRIVATELY INFORMING WALL STREET ANALYSTS OF HIS INTENTIONS THE MATTER IS EXPECTED TO BE VOTED ON AT HORMEL'S SEPT 27 BOARD MEETING AND MR JOHNSON IS WIDELY EXPECTED TO BE NAMED TO THE POST I'VE DONE MY BIT MR KNOWLTON SAID IN AN INTERVIEW ADDING THAT NONE OF HIS FOUR PREDECESSORS HAD BEEN CEO PAST AGE 62 AND I'M NOT GOING TO BE AN EXCEPTION STILL AS CHAIRMAN I'M GOING TO BE CALLING ON CUSTOMERS DURING HIS 14 YEARS AS HEAD OF HORMEL MR KNOWLTON OVERSAW ITS METAMORPHOSIS FROM HOG BUTCHER AND THE MAKER OF SUCH TRADITIONAL PRODUCTS AS SPAM TO A FOODINDUSTRY TECHNOLOGICAL LEADER WITH SUCH ITEMS AS THE TOP SHELF LINE OF SHELFSTABLE FOODS AND A MICROWAVABLE BACON THE COMPANY RECENTLY CHANGED ITS NAME AFTER A CENTURY AS GEO A HORMEL & CO MR KNOWLTON ALSO GUIDED HORMEL THROUGH A BRUISING YEARLONG STRIKE BY MEATPACKERS AGAINST THE AUSTIN MINN COMPANY BEGINNING IN 1985 LOOKING BACK THE CHAIRMAN SAID HE COUNTED AMONG HIS MAJOR ACCOMPLISHMENTS CREATING AN ENVIRONMENT IN WHICH PEOPLE LOOK FORWARD TO CHANGE IN FISCAL 1992 WHICH ENDED LAST OCT 31 HORMEL REPORTED RECORD EARNINGS OF 951 MILLION OR 124 A SHARE ON SALES OF 28 BILLION FOR THE FIRST NINE MONTHS OF FISCAL 1993 THE COMPANY EARNED 60 MILLION OR 78 CENTS A SHARE ON SALES OF 2 BILLION MR JOHNSON WHO SAID IN AN INTERVIEW THAT HE GREW UP IN THE BEVERAGE BUSINESS WORKED ON THE TANG INSTANT DRINK AND MAXWELL HOUSE COFFEE BRANDS AS A MARKETING EXECUTIVE AT GENERAL FOODS HE GAINED EXPERIENCE IN THE MEAT BUSINESS AT PHILIP MORRIS'S OSCAR MAYER UNIT BEFORE BEING HIRED BY HORMEL AS EXECUTIVE VICE PRESIDENT NAMED PRESIDENT IN JUNE 1992 AND CHIEF OPERATING OFFICER THIS PAST JANUARY MR JOHNSON HAS BEEN A DIRECTOR SINCE 1991 9308300099 930830 ASPIN SAYS US WON'T PULL OUT SOON IN SOMALIA DEFENSE SECRETARY'S VIEW APPEARS TO CONTRADICT OPINION OF CLINTON AIDE BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US ISN'T GOING TO PULL OUT OF SOMALIA SOON DEFENSE SECRETARY LES ASPIN SAID PRESIDENT CLINTON HAS GIVEN US CLEAR DIRECTION TO STAY THE COURSE WITH OTHER NATIONS TO HELP SOMALIA THE PENTAGON CHIEF SAID IN A SPEECH FRIDAY MR ASPIN'S STATEMENT WAS ESPECIALLY SIGNIFICANT BECAUSE IT APPEARS TO CONTRADICT STATEMENTS MADE TWO WEEKS AGO BY A SENIOR CLINTON ADMINISTRATION OFFICIAL WHO TOLD REPORTERS THEN THAT THE ADMINISTRATION WAS DEVOTING NEW ATTENTION TO THE QUESTION OF HOW TO GET OUT OF THE FACTIONRIDDEN AFRICAN COUNTRY THE US CURRENTLY HAS ABOUT 5000 TROOPS IN THE COUNTRY OF WHICH ABOUT 1600 ARE COMBAT TROOPS INCLUDING THE 400 RANGERS SPECIAL OPERATIONS TROOPS DISPATCHED LAST WEEK BEFORE THOSE COMBAT TROOPS CAN LEAVE MR ASPIN SAID THREE CONDITIONS MUST BE MET HEAVY WEAPONS MUST BE TAKEN OUT OF THE HANDS OF SOMALI WARLORDS CREDIBLE POLICE FORCES MUST BEGIN PATROLLING THE MAJOR CITIES AND MOST IMPORTANTLY THE SECURITY ISSUE IN SOUTH MOGADISHU MUST BE SETTLED THAT PHRASE IS USED AS A KIND OF CODE BY PENTAGON OFFICIALS TO MEAN THAT SOMALI WARLORD MOHAMED AIDID WHO CONTROLS THE SOUTHERN PART OF THE CAPITAL MUST BE NEUTRALIZED THE MAJORITY OF US TROOPS IN THE COUNTRY PROVIDE LOGISTICAL AND OTHER FORMS OF SUPPORT TO THE 23000 UNITED NATIONS PEACEKEEPERS IN THE COUNTRY INDICATING THAT A US MILITARY PRESENCE COULD STRETCH INTO 1995 MR ASPIN SAID THOSE US TROOPS CAN'T BE WITHDRAWN UNTIL MOGADISHU IS SAFE ENOUGH TO REPLACE THEM WITH CIVILIAN CONTRACTORS THE US BEGAN FLYING FOOD INTO SOMALIA LAST AUGUST TO RELIEVE THE INTENSE FAMINE THERE LAST DECEMBER MARINES WERE SENT IN TO STABILIZE CONDITIONS TO PERMIT OVERLAND DELIVERY OF FOOD US TROOP LEVELS PEAKED IN JANUARY AT 26000 COMMAND OF THE OPERATION WAS TURNED OVER TO THE UN IN MAY BUT AS THE UN BEGAN AGGRESSIVELY DISARMING SOMALI GUNMEN THE LEVEL OF VIOLENCE IN THE CAPITAL INCREASED IN EARLY JUNE 24 PAKISTANI PEACEKEEPERS WORKING FOR THE UN WERE KILLED IN AN AMBUSH THE UN BLAMED ON MR AIDID'S FORCES SINCE THEN THE ATMOSPHERE IN THE CAPITAL HAS BEEN DANGEROUS FOR UN TROOPS AND ESPECIALLY FOR AMERICAN SOLDIERS WHO HAVE BEEN THE TARGETS OF SEVERAL REMOTECONTROLLED BOMBINGS 9308300098 930830 AGENTS PROBING NATIONAL MEDICAL LOOK AT POLICIES INVESTIGATORS SEEK LINKS WITH EXECUTIVE SUITE STOCK FALLS 30 TO 775 BY RHONDA L RUNDLE AND DAVID J JEFFERSON STAFF REPORTERS OF THE WALL STREET JOURNAL FEDERAL AGENTS ARE SEEKING EVIDENCE LINKING SUSPECTED CRIMINAL MISCONDUCT BY MANY NATIONAL MEDICAL ENTERPRISES INC HOSPITALS WITH POLICIES AND DIRECTIVES ISSUED BY TOP CORPORATE EXECUTIVES ACCORDING TO GOVERNMENT AND INSURANCE COMPANY INVESTIGATORS MEANWHILE NATIONAL MEDICAL ACTED OVER THE WEEKEND TO TRY TO RESTORE CONFIDENCE FOLLOWING THURSDAY'S RAID BY FEDERAL AGENTS OF MORE THAN 20 OF ITS FACILITIES IN AN INTERVIEW YESTERDAY JEFFREY C BARBAKOW WHO TOOK OVER AS CHIEF EXECUTIVE OFFICER IN JUNE SAID THE EMBATTLED HOSPITAL OPERATOR WAS SETTING UP A NUMBER OF OVERSIGHT PROCEDURES AMONG THEM HE SAID WOULD BE THE APPOINTMENT OF AN INDEPENDENT TASK FORCE REPORTING TO A COMMITTEE OF THE BOARD THAT WILL RANDOMLY TEST ITS HOSPITALS' COMPLIANCE WITH CORPORATE POLICIES REGARDING PATIENT ADMISSIONS AND REFERRALS IN THE PAST THE SANTA MONICA CALIF COMPANY HAS CLAIMED IN CASES IN TEXAS AND OTHER STATES THAT A HANDFUL OF OVERZEALOUS LOCAL ADMINISTRATORS WERE TO BLAME FOR ISOLATED INSTANCES OF OVERBILLING AND ILLEGAL PAYMENTS IN EXCHANGE FOR PATIENT REFERRALS BUT THE GOVERNMENT IS SAID TO BELIEVE THOSE ACTIONS REFLECT A PATTERN OF MISCONDUCT THAT SPREAD FROM THE GIANT HOSPITAL OPERATOR'S EXECUTIVE SUITES ACCORDING TO INVESTIGATORS AND ATTORNEYS I AM NOT AWARE OF ANY PATTERN AND CLEARLY WE HAVE BEEN INVESTIGATING IT INTERNALLY OR ANY SYSTEMIC PROBLEMS ALONG THOSE LINES SAID MR BARBAKOW A FORMER INVESTMENT BANKER AND ENTERTAINMENT EXECUTIVE WHO BECAME CHAIRMAN OF NATIONAL MEDICAL IN JULY HOWEVER MR BARBAKOW ALLOWED THAT IF GOVERNMENT INVESTIGATORS DO FIND CONCRETE EVIDENCE LINKING WRONGDOING TO MANAGEMENT WE WILL BE ON THEIR THE GOVERNMENT'S SIDE HE ADDED IT IS IN ALL OUR EMPLOYEES' INTERESTS TO GET TO THE BOTTOM OF THIS COMPANY FOUNDERS RICHARD K EAMER AND LEONARD COHEN RESIGNED THEIR OPERATING POSTS IN APRIL UNDER BOARD PRESSURE AND LAST MONTH GAVE UP ALL THEIR REMAINING CORPORATE TITLES MR EAMER IN PARTICULAR HAS BEEN CRITICIZED BY FORMER HOSPITAL ADMINISTRATORS FOR PUTTING PRESSURE ON THEM TO PRODUCE UNREALISTICALLY HIGH PROFITS MR BARBAKOW SAID HE ISN'T AWARE OF ANY GOVERNMENT INVESTIGATIONS AIMED SPECIFICALLY AT FORMER OR CURRENT NATIONAL MEDICAL EXECUTIVES AFTER NEWS SPREAD OF THE AGENTS' THURSDAY SWEEP THROUGH NATIONAL MEDICAL FACILITIES AROUND THE COUNTRY NATIONAL MEDICAL SHARES PLUMMETED 30 ON FRIDAY OR 3375 TO 775 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE STOCK TOPPED THE BIG BOARD'S MOST ACTIVE LIST WITH 81 MILLION SHARES TRADED PLEDGING YESTERDAY THAT WE WILL NOT TOLERATE ANY KINDS OF PROBLEMS GOING FORWARD MR BARBAKOW OUTLINED A SERIES OF STEPS INTENDED TO RESTORE INVESTOR AND CUSTOMER CONFIDENCE IN NATIONAL MEDICAL IN ADDITION TO THE TASK FORCE REPORTING TO THE BOARD NATIONAL MEDICAL WILL ALSO SET UP LOCAL GOVERNING BOARDS IN ALL 141 OF ITS HOSPITALS ENHANCE QUALITY MANAGEMENT AUDITS AND TIGHTEN BILLING AND DOCUMENTATION PROCEDURES AND THE COMPANY IS SETTING UP A TOLLFREE TELEPHONE LINE FOR PATIENTS TO REPORT IMPROPRIETY MR BARBAKOW SAID OBVIOUSLY THE REASON FOR ALL OF THIS IS THAT WE NEED TO SHOW EVERYONE THAT CORRECT ACTIONS ARE OCCURRING WE HAVE NOT BEEN SITTING STILL SAID MR BARBAKOW WHO SPENT A GOOD PART OF FRIDAY CALMING DOWN THE COMPANY'S LARGE INSTITUTIONAL INVESTORS THE NEW OVERSIGHT PROCEDURES WILL APPLY TO ALL OF THE COMPANY'S FACILITIES NOT JUST THE PSYCHIATRIC OPERATIONS DESPITE THE FACT THAT THE INSURANCE COMPANY LAWSUITS AND GOVERNMENT INVESTIGATION ARE CONCENTRATED ON THE PSYCHIATRIC SEGMENT OF OUR BUSINESS WHICH REPRESENTS ONLY 16 OF OUR NET OPERATING REVENUES WE RECOGNIZE THAT THE IMPACT ON OUR REPUTATION IS MUCH WIDER SPREAD MR BARBAKOW SAID I DO THINK THE COMPANY IS IN A LIFEORDEATH MODE HERE SAID TODD RICHTER AN ANALYST AT DEAN WITTER REYNOLDS INC IF YOU WERE A DOCTOR TODAY WOULD YOU ADMIT ONE OF YOUR PATIENTS TO AN NME FACILITY MOREOEVER ONE PERSON CLOSE TO THE INVESTIGATION SAID THE FOCUS OF THE INQUIRY IS ON NATIONAL MEDICAL'S PSYCHIATRIC FACILITIES BUT ISN'T LIMITED TO THEM BESIDES ITS 61 PSYCHIATRIC HOSPITALS THE COMPANY HAS 46 ACUTECARE HOSPITALS AND 34 REHABILITATION HOSPITALS FEDERAL AGENTS LAST WEEK COLLECTED FILES FROM FOUR REGIONAL OFFICES IN ADDITION TO THE SANTA MONICA HEADQUARTERS THE SEARCHES AT THESE ADMINISTRATIVE AND EXECUTIVE OFFICES SUGGEST THAT THE GOVERNMENT'S TWOYEAROLD INVESTIGATION HAS MOVED BEYOND INDIVIDUAL FACILITIES THE SEARCH WARRANTS THE CONTENTS OF WHICH ARE SECRET RELIED ON INFORMATION GATHERED FROM PAST SEARCHES OF COMPANY PSYCHIATRIC HOSPITALS AND ON INFORMATION FROM INSURANCE COMPANIES PRESSING CIVIL FRAUD CLAIMS AGAINST THE COMPANY PEOPLE CLOSE TO THE INVESTIGATION SAID INFORMATION GATHERED IN PREVIOUS SEARCHES FOR INSTANCE SUPPORTS THE CONTENTION THAT NATIONAL MEDICAL HOSPITALS FOLLOWED CORPORATE POLICIES THAT BASED PATIENTS' LENGTH OF STAY ON INSURANCE COVERAGE RATHER THAN MEDICAL NECESSITY THOSE PEOPLE SAID LAST SEPTEMBER FEDERAL AGENTS CARTED OFF COMPUTERS SOFTWARE MANUALS AND NEARLY EVERY OTHER RECORD THEY COULD FIND AT RIVERHILLS HOSPITAL IN PRESCOTT WIS IT IS MY UNDERSTANDING THAT THE MATERIAL SEIZED AT RIVERHILLS PLAYED A MAJOR ROLE IN LAST WEEK'S SWEEP BY FEDERAL BUREAU OF INVESTIGATION AGENTS AN INSURANCE COMPANY INVESTIGATOR SAID EVIDENCE GATHERED IN OTHER STATE CASES WAS ALSO USEFUL PEOPLE CLOSE TO THE INVESTIGATION SAID TWO FORMER TEXAS PSYCHIATRIC HOSPITAL PATIENTS SAID FRIDAY THAT THEY WERE INTERVIEWED SEPARATELY BY FBI AGENTS IN RECENT MONTHS BOTH HAVE PENDING LAWSUITS AGAINST NATIONAL MEDICAL AND WERE REACHED AT THE OFFICE OF THEIR ATTORNEY ROBERT ANDREWS IN FORT WORTH TEXAS THE FIRST THING THE AGENTS MENTIONED TO ME BEFORE THEY SAT DOWN WAS THAT THEIR INTENTIONS WERE TO BRING ABOUT CRIMINAL INDICTMENTS AGAINST DOCTORS AND CORPORATE OFFICIALS SAID BANNING LYON A 21YEAROLD FORMER PATIENT AT THE DEFUNCT BROOKHAVEN PSYCHIATRIC PAVILLION NEAR DALLAS DAWN MCCLARY 20 SAID THE AGENTS WERE CURIOUS ABOUT BILLING AMONG OTHER MATTERS SOME ANALYSTS ARE QUESTIONING THE PROPRIETY OF THE COOPERATION BETWEEN THE GOVERNMENT AND SOME OF THE NATION'S LARGEST HEALTH INSURANCE COMPANIES IN THE INVESTIGATION THE INSURANCE COMPANIES HAVE FILED LAWSUITS AGAINST NATIONAL MEDICAL IN WASHINGTON DC AND TEXAS SEEKING HUNDREDS OF MILLIONS OF DOLLARS IN ALLEGEDLY FRAUDULENT CLAIMS WE HAVE BEEN COOPERATING EXTENSIVELY WITH THE FBI AND OTHER LAW ENFORCEMENT AGENCIES WE HAVE DONE SO VOLUNTARILY AND UNDER SUBPOENA ACKNOWLEDGED THOMAS BRUNNER THE PRINCIPAL ATTORNEY DIRECTING THE INSURERS' LITIGATION BUT DEAN WITTER'S MR RICHTER SUGGESTED THAT THE INSURERS MAY HAVE PRESSURED THE GOVERNMENT INTO ITS RAIDS ON NATIONAL MEDICAL AFTER THE HOSPITAL OPERATOR RECENTLY FILED RETALIATORY LEGAL ACTIONS AGAINST THE INSURERS I DO THINK IT'S RATHER CURIOUS THAT THE INQUIRY TURNED MORE AGGRESSIVE AFTER THE WAR BETWEEN THE TWO SIDES TOOK A TURN FOR THE WORSE HE SAID THE INSURERS' ATTORNEY MR BRUNNER FLATLY DENIED THAT HE KNEW ANYTHING ABOUT THE RAID IN ADVANCE 9308300097 930830 IWERKS ENTERTAINMENT PLANS PUBLIC OFFERING OF 24 MILLION SHARES BURBANK CALIF IWERKS ENTERTAINMENT INC WHICH IS DEVELOPING A CHAIN OF MOVIEBASED ENTERTAINMENT CENTERS PLANS AN INITIAL PUBLIC OFFERING OF 24 MILLION COMMON SHARES THE COMPANY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE OFFERING WHICH IS EXPECTED TO BE PRICED AT 10 TO 12 A SHARE OR BETWEEN 24 MILLION AND 288 MILLION OF THE SHARES TWO MILLION WILL BE OFFERED BY THE COMPANY AND 400000 BY STOCKHOLDERS IWERKS IS IN THE PROCESS OF DEVELOPING A CHAIN OF CINETROPOLIS CENTERS COSTING BETWEEN 15 MILLION AND 18 MILLION APIECE THAT WILL COMBINE THE COMPANY'S GIANTSCREEN THEATERS MOTIONSIMULATOR RIDES CIRCLEVISION THEATERS AND NEW VIRTUAL REALITY ATTRACTIONS WITH RESTAURANTS AND SHOPS THE FIRST CINETROPOLIS IS SET TO OPEN LATE THIS YEAR AT FOXWOODS CASINO IN LEDYARD CONN AND THE COMPANY PLANS TO USE SOME PROCEEDS FROM THE OFFERING FOR TWO ADDITIONAL SITES IWERKS HOPES TO DEVELOP 30 CENTERS IN THE US AND 15 IN EUROPE EARLIER THIS YEAR JAPANESE TRADER ITOCHU CORP AGREED TO HELP IWERKS DEVELOP AS MANY AS 30 OF THE CENTERS THROUGHOUT ASIA BY THE END OF THE DECADE PROCEEDS FROM THE OFFERING ALSO WILL BE USED TO FUND PRODUCTION OF FILMS FOR IWERKS' ATTRACTIONS AND FOR CORPORATE PURPOSES ROBERTSON STEPHENS & CO AND SALOMON BROTHERS INC ARE UNDERWRITERS 9308300096 930830 POLITICS & POLICY FAILURES OF MARS OBSERVER AND WEATHER SATELLITE THROW NASA'S POSTCOLD WAR MISSION OFF ORBIT BY BARBARA ROSEWICZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE 1 BILLION MARS OBSERVER AND THE 67 MILLION WEATHER SATELLITE THAT MALFUNCTIONED THIS MONTH MAY NOT BE THE ONLY THINGS LOST IN SPACE THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION IS AT ITS MOST CRITICAL JUNCTURE SINCE THE SHUTTLE CHALLENGER EXPLODED WITH ITS SEVENPERSON CREW IN 1986 AND SHOOK THE AGENCY'S CREDIBILITY TO THE CORE EVEN AS IT GRAPPLES WITH THE EMBARRASSING FAILURES OF THE TWO CRAFT WITH PRESSURES FROM CONGRESS AND WITH DISCORD IN ITS WORK FORCE THE SPACE PROGRAM IS STILL STRUGGLING TO REDEFINE ITS ROLE IN AN ERA OF BUDGET AUSTERITY AND THE END OF THE SPACE RACE WITH THE SOVIET UNION THE FALLOUT FROM THE LATEST FAILURES CERTAINLY ISN'T LETHAL ENOUGH TO GROUND NASA BUT IT LEAVES THE AGENCY IN AN OPENENDED STATE OF PROBATION IN WHICH ITS PERFORMANCE IS SUSPECT AND CONGRESS AND THE AMERICAN PUBLIC AREN'T SURE WHETHER TO FULLY EMBRACE ITS POSTCOLD WAR MISSION YOU PUT THESE LATEST FAILURES ON TOP OF ALL THAT FLUIDITY ANYWAY AND IT'S LIKE LAUREL AND HARDY WHEN THEY TALK ABOUT A FINE MESS' SAYS JOHN LOGSDON DIRECTOR OF THE SPACE POLICY INSTITUTE AT GEORGE WASHINGTON UNIVERSITY IN MANY WAYS THE AGENCY'S HARDCHARGING ADMINISTRATOR DANIEL GOLDIN IS NASA'S PREDICAMENT WRIT SMALL A 53YEAROLD FORMER TRW INC EXECUTIVE MR GOLDIN IS A BUSH APPOINTEE WHO HAS NEITHER BEEN REAPPOINTED NOR ASKED TO LEAVE BY THE CLINTON ADMINISTRATION HE HAS BEEN ASSIDUOUS IN PUSHING THE NOTION THAT NASA NEEDS TO SHIFT FROM SO MANY MEGASCIENCE PROJECTS THAT TAKE OVER A DECADE TO GET OFF THE GROUND TO CHEAPER FASTER AND SMALLER MISSIONS BUT MANY OF THE CHANGES HE IS PUSHING CLASH WITH THE CULTURE OF THE AGENCY THAT WAS SHAPED IN THE HEADY DAYS OF THE MOONSHOTS CHANGE IS PAINFUL HE SAYS MY JOB IS NOT TO MAKE PEOPLE COMFORTABLE SOME INSIDERS SUGGEST THE WHITE HOUSE HASN'T EMBRACED MR GOLDIN BECAUSE IT WOULD BE EASIER TO BOOT HIM AND DISTANCE THE PRESIDENT IN CASE OF PROBLEMS PARTICULARLY WITH THE CLINTONORDERED REDESIGN OF THE MULTIBILLIONDOLLAR SPACE STATION BUT IN THE MEANTIME THE UNCERTAINTY AROUND HIM COMBINED WITH HIS UNYIELDING MANAGEMENT STYLE MAKE FOR ROUGH TIMES AT THE SPACE AGENCY THE TWO RECENT FAILURES WOULDN'T BE OF SO MUCH CONSEQUENCE IF NASA WERE RIDING HIGH BUT TAXPAYERS ARE STILL SMARTING OVER THE DISTORTED OPTICS ON NASA'S 2 BILLION HUBBLE SPACE TELESCOPE AND AN ANTENNA GLITCH THAT CUTS THE VALUE OF THE GALILEO MISSION TO JUPITER EVEN THE LATEST SPACE SHUTTLE DISCOVERY HAS HAD TROUBLE SUFFERING FOUR DELAYS SINCE MIDJULY THREE TIMES FOR MECHANICAL PROBLEMS IT IS RESCHEDULED FOR TAKEOFF SEPT 10 WE DO VERY DIFFICULT THINGS AND SOMETIMES WE HAVE FAILURES MR GOLDIN SAYS IN 52 MISSIONS OVER THE LAST FIVE YEARS HE SAYS THERE WERE ONLY THREE OR FOUR MAJOR FAILURES I DON'T THINK OUR CHARTER IS TO GUARANTEE 52 SUCCESSES OUT OF 52 TRIES BECAUSE IT WOULD SAY WE'RE LOADING THE DECK AND WEREN'T PUSHING THE BOUNDARIES STILL NASA COULD HARDLY HAVE PICKED A WORSE TIME TO HAVE THOSE FAILURES THAN RIGHT NOW THAT'S BECAUSE ONE OF ITS CROWN JEWELS THE STILLUNBUILT SPACE STATION THAT WOULD HOUSE FOUR ASTRONAUTS IN ORBIT IS FACING ITS GREATEST UNCERTAINTY EVER HAVING BARELY SQUEAKED THROUGH THE HOUSE THE SPACE STATION'S SUPPORT IN THE SENATE WHICH IS SUPPOSED TO VOTE NEXT MONTH IS SOFTENING ADDING TO THE POLITICAL UNCERTAINTY CHANGES ARE STILL BEING MADE IN THE FINAL PLANS FOR THE REDESIGN AND WON'T BE UNVEILED UNTIL AT LEAST SEPT 7 MOREOVER NASA AND RUSSIAN OFFICIALS ARE DRAWING UP PLANS FOR YET ANOTHER DESIGN THIS ONE A MERGED SPACE STATION FOR THE MOMENT THOUGH THE PRINCIPAL CONCERN IS DETERMINING WHAT HAPPENED TO THE MARS OBSERVER WHICH WAS LAUNCHED IN SEPTEMBER 1992 JUST FIVE MONTHS AFTER MR GOLDIN TOOK OVER NASA IN RETROSPECT MR GOLDIN SAYS THE OBSERVER WAS JUST TOO BIG AND TOO COSTLY THE PROBLEM WAS WE HADN'T BEEN TO MARS IN 17 YEARS IT'S A WONDERFULLY BOLD MISSION BUT WE PUT ALL OUR EGGS IN ONE BASKET HE SAYS NASA ENGINEERS TRIED A FINAL RECOVERY TECHNIQUE FRIDAY RESETTING THE CRAFT'S ONBOARD COMPUTER THEY WON'T KNOW THE RESULT UNTIL TODAY BUT MR GOLDIN ALREADY TALKS AS THOUGH HE BELIEVES THE OBSERVER IS A TOTAL LOSS IT LOOKS LIKE IT'S DEAD HE ADMITS NASA HAS ALREADY BEGUN AN EFFORT TO IDENTIFY THE CAUSE OF THE PROBLEM ONE COMPONENT UNDER SUSPICION IS A TRANSISTOR IN A CLOCK THAT CONTROLLED IMPORTANT COMPUTER FUNCTIONS ON THE SPACECRAFT THE TRANSISTOR IS SUSPECTED BECAUSE IT CAME FROM THE SAME LOT AS ONE THAT FAILED IN THE ILLFATED WEATHER SATELLITE JUST BEFORE IT WAS LAUNCHED BUT UNITRODE CORP OF BILLERICA MASS WHICH MADE THE PART SAID IN A STATEMENT FRIDAY IT HASN'T BEEN CONTACTED BY NASA AND KNOWS OF NO DATA LINKING THE PART TO THE OBSERVER'S PROBLEM AND IN FACT NASA CAN ONLY GUESS AT THE CULPRIT PARADOXICALLY WHILE THE MARS OBSERVER'S FAILURE INCREASES THE PRESSURE ON NASA AND ON MR GOLDIN IT STRENGTHENS THE MESSAGE OF CHANGE HE HAS TRIED TO BRING TO THE AGENCY EVEN BEFORE THE PROBLEM NASA WAS PROPOSING A FOLLOWUP PATHFINDER MISSION TO THE RED PLANET USING A SMALL CRAFT THAT COULD BE BUILT IN THREE YEARS FOR 189 MILLION AND USING ADVANCED PARACHUTE AND AIRBAG TECHNOLOGY WOULD LAND A MICROROVER WITH A CAMERA NOW MR GOLDIN SAYS HE IS ALREADY CONSIDERING FIVE OR SIX IDEAS FOR HOW TO QUICKLY RECOVER FROM THE OBSERVER LOSS AND SEND A LESS EXPENSIVE MISSION TO MARSPERHAPS AS EARLY AS 1994 OR 1996TO COMPLETE SOME OF THE LOST SCIENTIFIC WORK ONE POSSIBILITY BEING STUDIED HE SAID IS TO USE A STAR WARS PROGRAM SATELLITE CALLED CLEMENTINE MR GOLDIN PROJECTS AN ALMOST EVANGELICAL SPIRIT AS HE OUTLINES A VISION FOR NASA FOR THE 1990S BUT HE COULD GET TRIPPED UP ALONG THE WAY AS HIS JOLTING CHANGES AND HIS SOMETIMESABRASIVE MANAGEMENT STYLE ANTAGONIZE SOME INSIDE AND OUTSIDE HIS 24000EMPLOYEE AGENCY THE RAWEST NERVES UNDERSTANDABLY ARE AMONG THOSE NASA EMPLOYEES AND CONTRACTORS WHOSE JOBS ARE IN JEOPARDY WITH THE SPACESTATION DOWNSIZING AND WHO HAVE SOME OF THEIR OWN ALLIANCES ON CAPITOL HILL THE SITUATION IS AGGRAVATED BY THE FACT MR GOLDIN HAS FROZEN OUT MANY OF THE SPACE STATION'S VETERANS FROM WORK ON THE REDESIGN THE SPACE STATION'S FORMER DEPUTY DIRECTOR ROBERT MOOREHEAD SUSPECTS HE WAS REMOVED FROM HIS JOB AND PUT INTO EXILE LAST MONTH IN WHAT HE SEES AS A DEADEND HEADQUARTERS JOB BECAUSE OF REMARKS THAT MAY HAVE OFFENDED MR GOLDIN MR GOLDIN INSISTS THAT MR MOOREHEAD'S NEW JOB IS IMPORTANT TOO OTHERS IN THE AGENCY ARE STILL SMARTING FROM MR GOLDIN'S PUBLIC COMMENTS EARLIER THIS YEAR THAT HE DIDN'T WANT TO HEAR ANY MORE TALK ABOUT THE HEROIC DAYS OF THE APOLLO MOONSHOTS BECAUSE YOUNGER ENGINEERS DESERVE THEIR OWN CHANCE FOR GLORY BUT IF HE HAS GIVEN OFFENSE TO SOME IN HIS AGENCY MR GOLDIN DOESN'T APOLOGIZE FOR IT MY JOB IS NOT TO BE DR HAPPINESS HE SAYS BLUNTLY MY JOB IS NOT TO HOLD PEOPLE AND ASK THEM HOW THEY FEEL MY JOB IS TO CARRY OUT THE POLICY OF THE PRESIDENT OF THE UNITED STATES I WOULD HOPE ALL EMPLOYEES OF NASA UNDERSTAND THE PRESIDENT IS OUR BOSS 9308300095 930830 THE OUTLOOK HEALTHCARE OPTION IMPOSING COST CONTROLS BY ALAN MURRAY WASHINGTON IN THE PAST FEW MONTHS THE PRESIDENT'S HEALTHCARE PLAN HAS UNDERGONE A QUIET BUT PROFOUND TRANSFORMATION IN THE SPRING MR CLINTON'S ADVISERS WERE BUSILY SORTING THROUGH VARIOUS TAX SCHEMES TO FINANCE HEALTH REFORM THEY LOOKED AT TAXES ON HOSPITALS ON DOCTORS ON INSURANCE COMPANIES AND EVEN CAME SURPRISINGLY CLOSE TO EMBRACING A HUGE NEW PAYROLL TAX ON EMPLOYERS BUT NOW ALL THE TAX TALK HAS STOPPED THE ONLY PROPOSAL STILL ON THE TABLE IS A CIGARETTE TAX VALUED MORE FOR ITS HEALTH EFFECTS THAN ITS REVENUE EFFECTS IT ISN'T SURPRISING THAT THE ADMINISTRATION IS ABANDONING ITS TAX PROPOSALS GIVEN THE BRUISING MR CLINTON SUFFERED IN HIS BUDGET BATTLE AND THE CHANGE IN THE HEALTH PLAN BRINGS IT INTO LINE WITH MR CLINTON'S OWN RHETORIC HEALTHCARE REFORM HE HAS TOLD THE NATION REPEATEDLY IS THE KEY TO CONQUERING THE BUDGET DEFICIT IF THAT IS THE CASE WHY DO WE NEED NEW TAXES TO PAY FOR IT BUT THE CLINTON LINE HAS ALWAYS BEEN MISLEADING HEALTH CARE MAY BE THE CAUSE OF THE BUDGET PROBLEM BUT IT ISN'T NECESSARILY THE SOLUTION AT LEAST IN THE NEAR TERM MANY EXPERTS BELIEVE THE NATION CAN'T CONTROL HEALTHCARE COSTS UNTIL IT FIRST PROVIDES COVERAGE TO THE ESTIMATED 37 MILLION PEOPLE WITHOUT IT THAT COSTS MONEY LOTS OF IT EVEN CONGRESSIONAL CONSERVATIVES LIKE DEMOCRATIC REP JIM COOPER OF TENNESSEE WHO CHAMPIONS A MARKETORIENTED MANAGED COMPETITION HEALTH PLAN BELIEVE THE GOVERNMENT WILL HAVE TO PAY 30 BILLION TO 40 BILLION A YEAR IN THE FIRST FEW YEARS TO MAKE REFORM WORK AS FAR AS WE KNOW THAT'S THE CHEAPEST PLAN THERE IS HE SAYS BUT THE PRESIDENT'S CHIEF HEALTHCARE GURU IRA MAGAZINER BELIEVES A HAT TRICK IS POSSIBLE HE IS WORKING ON A PLAN THAT AIMS TO PROVIDE COVERAGE TO THE UNINSURED AVOID TAX HIKES AND REDUCE THE DEFICIT ALL AT THE SAME TIME IT WOULD REQUIRE BUSINESSES TO BUY THEIR EMPLOYEES HEALTHCARE COVERAGE A REQUIREMENT SOME BUSINESSES MAY VIEW AS NO BETTER THAN A TAX AND TO RAISE THE TENS OF BILLIONS OF DOLLARS NEEDED TO COVER THE UNEMPLOYED AND SUBSIDIZE HARDHIT SMALL BUSINESSES IT WOULD SQUEEZE OUT WASTE AND INEFFICIENCY BY IMPOSING SHARP CONTROLS ON HEALTHCARE COSTS ASKED ABOUT THE COST CONTROLS WHITE HOUSE SPOKESMAN KEVIN ANDERSON SAID THAT NO FINAL DECISIONS HAVE BEEN MADE BUT THE OPTIONS BEFORE THE PRESIDENT CONTEMPLATE VARYING DEGREES OF SAVINGS ULTIMATELY AS A RESULT OF HOW HARD AND HOW QUICKLY WE STEP ON THE BRAKE OF RUNAWAY HEALTH SPENDING CLINTON'S AIDES BRISTLE WHENEVER THEY ARE COMPARED WITH THE REAGAN ADMINISTRATION BUT THERE IS A SIMILARITY HERE IN 1981 MR REAGAN CLAIMED HE COULD CUT TAXES INCREASE DEFENSE SPENDING AND REDUCE THE DEFICIT ALL AT THE SAME TIME AND THE KEY TO DOING IT WAS ELIMINATING WASTE FRAUD AND ABUSE IF IT RELIES TOO HEAVILY ON COST CONTROLS MR CLINTON'S HEALTHCARE PLAN COULD BE HEADING IN A SIMILAR DIRECTION ANY ADMINISTRATION HAS A TENDENCY TO USE SMOKE AND MIRRORS TO ACHIEVE ITS GOALS WORRIES MR COOPER TO BE SURE MR CLINTON IS IN A TOUGH SPOT A BIG TAX INCREASE WOULD ENDANGER THE HEALTHCARE PLAN'S CHANCES FOR GARNERING BIPARTISAN SUPPORT ON CAPITOL HILL AND WHILE SOME OF MR CLINTON'S ECONOMIC ADVISERS ARGUE HE SHOULD HOLD DOWN THE PLAN'S COST BY PHASING IN UNIVERSAL COVERAGE MORE SLOWLY THAT HAS PITFALLS TOO HEALTHCARE EXPERTS SAY IF YOU PUT COST CONTROLS ON PROVIDERS BEFORE YOU PROVIDE HEALTHCARE COVERAGE TO ALL THEN THE UNINSURED MAY HAVE AN EVEN HARDER TIME GETTING NEEDED CARE MOREOVER IT IS DIFFICULT TO ARGUE WITH MR MAGAZINER'S NOTION THAT THERE IS WASTE AND INEFFICIENCY THAT CAN BE SQUEEZED OUT OF THE HEALTH SYSTEM THE US SPENDS 12 OF ITS OUTPUT ON HEALTH CARE WHILE OTHER INDUSTRIALIZED NATIONS SPEND ONLY 8 OR 9 AND THEIR CITIZENS REMAIN RELATIVELY HEALTHY AND HAPPY IF THEY CAN DO IT YOU HAVE TO ASK WHY THE HELL CAN'T WE SAYS HENRY AARON OF THE BROOKINGS INSTITUTION THE PROBLEM COMES IN FIGURING HOW LONG IT TAKES TO GET FROM HERE TO THERE IT COULD TAKE YEARS IF NOT DECADES TO CONVERT THE NATION'S CONVOLUTED AND WASTEFUL HEALTHCARE SYSTEM INTO A MORE SENSIBLE AND LESS COSTLY ONE THE FEAR IS THAT IN THE DESIRE TO PROVIDE UNIVERSAL COVERAGE WITHOUT RAISING TAXES THE CLINTON PLAN MAY IMPOSE COST CONTROLS THAT FORCE CHANGE TOO QUICKLY THERE ARE DANGERS IN THIS APPROACH ONE IS IT WOULD STIFLE MR CLINTON'S STATED DESIRE OF CREATING A SYSTEM OF MANAGED COMPETITION ALAIN ENTHOVEN THE STANFORD UNIVERSITY ECONOMIST WHO FATHERED THE IDEA OF MANAGED COMPETITION WROTE IN AN OPED PIECE IN THE LOS ANGELES DAILY NEWS LAST WEEK THAT MR CLINTON'S PLAN FOR TOUGH COST CONTROLS MAY ACTUALLY MAKE A BAD SITUATION WORSE BY FREEZING THE INEFFICIENCIES OF TODAY'S SYSTEM INTO PLACE ANOTHER CONCERN IS THAT SUCH AN ABRUPT GOVERNMENTDICTATED CHANGE COULD CAUSE PAINFUL DISLOCATIONS AND UNINTENDED CONSEQUENCES HOSPITALS WITH EXCESS BEDS MIGHT BE FORCED TO GO UNDER THOSE THAT HAVE INVESTED IN EXPENSIVE TECHNOLOGY MIGHT FIND THEIR EQUIPMENT STANDING IDLE RATIONING OF HEALTH CARE WOULD RISE AND HORROR STORIES ABOUT PEOPLE WHO DIED BECAUSE THEY WERE DENIED TESTS BY BEANCOUNTING HEALTHCARE ACCOUNTANTS ARE CERTAIN TO PROLIFERATE WHEN THOSE HORROR STORIES START FLOWING IN WILL CONGRESS ENFORCE THE CONTROLS I DOUBT IT SAYS MR COOPER WE'RE NOT GOING TO CURTAIL HEALTH CARE JUST BECAUSE SOME BUREAUCRAT GUESSED WRONG ON THE CAP THE RESULT COULD BE MORE HEALTHCARE SPENDING NO MEANS OF PAYING FOR IT AND ANOTHER PROMISED FREE LUNCH THAT ENDS UP FATTENING THE FEDERAL BUDGET DEFICIT 9308300094 930830 BUSINESS BRIEF STONE CONTAINER PLANS CANADIAN IPO OF MINORITY STAKE IN NEWSPRINT UNIT CHICAGO STONE CONTAINER CORP FILED WITH CANADIAN REGULATORS TO TAKE ITS NEWSPRINT OPERATIONS PUBLIC THROUGH AN INITIAL OFFERING IN CANADA OF A SIGNIFICANT MINORITY STAKE THE MOVE HAS BEEN WIDELY EXPECTED AND IS PART OF THE DEBTHEAVY PACKAGING CONCERN'S FINANCIAL RESTRUCTURING THE OFFERING WILL MARK THE LATEST STOCK SALE BY OWNERS OF CANADIAN PAPER PRODUCERS PAPER PRICES HAVE BEEN UNDER PRESSURE IN RECENT YEARS BECAUSE OF SOFT DEMAND AND EXCESS INDUSTRY CAPACITY BUT THEY HAVE STARTED TO SHOW INDICATIONS OF A POSSIBLE CYCLICAL FIRMING BUT STONE'S MOVE IS MORE CLEARLY DRIVEN BY A NEED TO REDUCE LEVERAGE THE PARENT'S DEBT LOAD MUCH OF IT TAKEN ON WHEN THE PARENT MADE ITS US22 BILLION ACQUISITION OF CONSOLIDATEDBATHURST INC IN 1989 HAS PROVEN DIFFICULT TO SERVICE SINCE INDUSTRY CONDITIONS WENT INTO DECLINE INDEED THE OFFERING IN WHAT IS TO BE KNOWN AS STONECONSOLIDATED CORP REPRESENTS A PORTION OF WHAT USED TO BE CONSOLIDATEDBATHURST STONE WILL RETAIN A MAJORITY STAKE IN STONECONSOLIDATED THROUGH A CANADIAN HOLDING COMPANY THAT WILL BE 100OWNED BY THE CHICAGO PARENT THE HOLDING COMPANY WILL RETAIN THE PARENT'S OWNERSHIP IN OTHER CANADIAN OPERATIONS AS WELL THE STOCK OFFERING IN CANADA WILL BE LED BY SCOTIAMCLEOD INC AND BURNS FRY LTD THE US NOTE OFFERING WILL BE LED BY SALOMON BROTHERS INC DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION COVERING THE NOTE OFFERING SHOW THAT STONECONSOLIDATED HAD A NET LOSS OF 1032 MILLION CANADIAN DOLLARS US784 MILLION IN 1992 ON SALES OF C8408 MILLION THROUGH THE FIRST SIX MONTHS OF 1993 IT HAS HAD A NET LOSS OF C357 MILLION ON REVENUE OF C4583 MILLION AND IT CAUTIONED THAT IT EXPECTS TO REPORT A LOSS FOR THE YEAR IF CURRENT PRICING LEVELS FOR THE COMPANY'S PRODUCTS DO NOT IMPROVE SIGNIFICANTLY IT SAID IN THE SEC FILING THE COMPANY WILL CONTINUE TO INCUR NET LOSSES STONECONSOLIDATED WITH 4170 EMPLOYEES OWNS FOUR PAPER MILLS IN CANADA AND ONE IN BRITAIN PLUS THREE CANADIAN SAWMILLS 9308300093 930830 LEISURE & ARTS TELEVISION SHADES OF FUGITIVE' SOUTH OF THE BORDER BY ROBERT GOLDBERG IN CERTAIN FILMS WHEN YOU CROSS THE RIO GRANDE YOU ENTER A DIFFERENT MORAL LATITUDE SOUTH OF THE BORDER THE AIR IS HOT AND SULTRY LADEN WITH CRIME CORRUPTION SIN AND RAW DESIRE THE MEN ALL DRINK TOO MUCH THE WOMEN ARE ALWAYS BITING INTO RIPE PEACHES AND LICKING THE JUICE THAT DRIBBLES DOWN THEIR ARMS AND EVEN THE PALM TREES LOOK SEEDY AND DECADENT WANDERING THROUGH THIS SWEATY TERRITORY IS THE WRONG MAN SHOWTIME SUNDAY 911 PM EDT THE STORY OF ALEX WALKER KEVIN ANDERSON AN AMERICAN SAILOR ON SHORE LEAVE IN TAMPICO ON THE MEXICAN SIDE OF THE GULF AS BEFITS THE TITLE THIS THRILLER STARTS OFF IN A MODE THAT'S PURE HITCHCOCK WITH ORSON WELLES'S TEXMEX FILM NOIR A TOUCH OF EVIL THROWN IN AS ALEX WANDERS DOWN A DARK BACK STREET AND INTO A RUNDOWN JOINT LOOKING FOR A GLASS OF WHISKEY A JUMPY FELLOW GRINGO NAMED FELIX ROBERT HARPER STRIKES UP A CONVERSATION WITH HIM INTRODUCES HIM TO A SLINKY SENORITA IN A TIGHT BLUE DRESS AND LIFTS HIS WALLET IN THE PROCESS ALEX ONLY DISCOVERS THE THEFT LATER WHILE CLUTCHING THE SENORITA HE CHARGES OUT INTO THE NIGHT LURCHING THROUGH THE SHADOWS LOOKING FOR FELIX HE FINDS HIM IN A RUNDOWN APARTMENT SITTING BEHIND A DESK WITH A BULLET HOLE IN HIS SIDE THE BLOOD AND THE LIFE SLOWLY SEEPING OUT OF HIM AND JUST AS ALEX STARTS TO LOOK FOR HIS MONEY HE HEARS THE LANDLADY COMING UP THE STEPS WITH THE COPS RIGHT BEHIND PANICKED ALEX BOLTS OUT THE DOOR AND FLEES THAT'S THE SETUP FOR WHAT SHOULD BE A STRONG DRAMATIC INNOCENTMANONTHERUN FUGITIVESTYLE THRILLER BUT DUCKING DOWN A BACK ALLEY THE WRONG MAN TAKES A STRANGE TURN AND ENDS UP IN TENNESSEE WILLIAMS TERRITORY ON THE LAM FROM THE POLICE ALEX HIDES IN THE BACK SEAT OF A CONVERTIBLE THAT BELONGS TO A FLIRTY SOUTHERN BEAUTY NAMED MISSY ROSANNA ARQUETTE AND HER OLDER HUSBAND PHILLIP JOHN LITHGOW A SHADY EXPORTER WAITING FOR HIS BIG PAYDAY THEY AGREE TO HELP ALEX DODGE THE POLICE AND TOGETHER THE THREE SET OFF ON AN ODD TREK ACROSS MEXICO AND AS THEY TRAVEL ALEX IS DRAWN INTO A STRANGE AND STEAMY LOVE TRIANGLE WHY DO PEOPLE HAVE TO SUFFER SO MUCH WHEN THEY FALL IN LOVE SAYS MISSY BATTING HER EYELASHES AT ALEX I ALWAYS DO SHE SIGHS ALEX WILL SOON DISCOVER THAT MISSY HAS A PROBLEM WITH HER DRESSES SHE CAN'T SEEM TO KEEP THEM ON AS THE TWO SEDUCE EACH OTHER AS PHILLIP FUMES AND RAGES THE MYSTERY STORY TAKES MORE AND MORE OF A BACK SEAT TO THE ROMANCE A LOVEHATELOVE RELATIONSHIP IN THE SMOLDERING TROPICS AND SOMEWHERE ON THE ROAD FROM THE GULF COAST TO THE GUATEMALAN BORDER THE PLOT OF THE WRONG MAN LURCHES COMPLETELY OUT OF CONTROL AND RUNS INTO A DITCH IN THEORY A PAIR OF DETECTIVES ARE HOT ON ALEX'S TRAIL BUT MOSTLY THEY JUST DASH AROUND A LOT AND MISS HIM BY SECONDS THEN SHAKE THEIR HEADS AND SAY STUFF LIKE I THINK THIS GUY IS SMART THAT'S A DEDUCTION THAT MAY PUZZLE THE AUDIENCE OUR HERO IS WRITTEN AS A CIPHER A STANDARDISSUE LEADING MAN WITH FEW DISCERNIBLE TRAITS AND PLAYING ALEX MR ANDERSON IS LONG ON POUTY GOOD LOOKS AN AMERICAN GEORGE MICHAEL ALL STUBBLE AND LINEN JACKETS AND RUGGED SENSITIVITY BUT NOT MUCH SEEMS TO BE GOING ON BEHIND THE EYES LIKE HIS CHARACTER HE SEEMS A LITTLE LOST WANDERING AROUND A FOREIGN COUNTRY WITHOUT A MAP MS ARQUETTE WHO HAS DONE SOME WONDERFUL TOURS THROUGH BOHEMIA IN HER CAREER IS ALSO IN STRANGE TERRITORY HERE AS THE VOLUPTUOUS SEXPOT MISSY SHE SEEMS TO BE KEEPING HERSELF IN FINE SHAPE BUT IT WOULD BE NICE IF THE SCRIPT LET HER EXPOSE AS MUCH OF HER PSYCHE AS HER SKIN BUT AS PHILLIP THE WOULDBE DEAL MAKER WHOSE DEALS KEEP FALLING APART MR LITHGOW OFFERS REASON ENOUGH TO WATCH THE WRONG MAN SLOUCHING AND CURSING AND TIPPING BACK HIS PANAMA HAT MR LITHGOW IS BY TURNS SLY AND FUNNY BITTER AND ENRAGED SUCKING HIS CIGARETTE IN SHARP ANGRY BURSTS I'M NOT GONNA RIDE AROUND FOREVER IN THIS GODDAMN FORSAKEN COUNTRY HE SAYS YOU KNOW THERE'S NOTHING WRONG WITH WANTING MONEY AND I'M GONNA FIGHT AND KICK TILL I GET A FISTFUL CAUSE IT'S MY TURN I GOTTA HAVE CASH FOR CINDERELLA OVER THERE SO SHE CAN SIT AROUND ON HER ASS READING HER MAGAZINES HE HACKS AND SPITS AND STARES BLEAKLY ACROSS THE BEACH AT MISSY AND HIS BUSTED FUTURE EVEN IN A SOILED UNDERSHIRT THIS IS ONE MESMERIZING CHARACTER TOO BAD SCREENWRITER MICHAEL THOMA AND DIRECTOR JIM MCBRIDE DIDN'T BUILD THE REST OF THE FILM AS SOLIDLY THE WRONG MAN IS PREDICATED ON A FLIMSY SERIES OF IMPROBABLE EVENTS FIRST THAT OF ALL THE CARS ON ALL THE ROADS IN MEXICO ALEX WOULD END UP IN PHILLIP AND MISSY'S AND SECOND AFTER ALEX WANDERS OFF ON HIS OWN THAT PHILLIP WOULD WELCOME BACK THE YOUNG STUD WHO'S BEEN HITTING ON HIS WIFE SURE HE DOES A LITTLE WITTY FUMING JESUS CHRIST AND 40 COWBOYS COULDN'T GET RID OF THIS GUY BUT WHY IN THE WORLD WOULD PHILLIP EVER AGREE TO LET HIM BACK IN HIS CAR ALONG THE WAY THE WRONG MAN OFFERS A FEW GLIMPSES OF AUTHENTIC LOCAL COLOR AND SOME FINE MUSIC BY LOS LOBOS BUT IN THE END THE STORY FINISHES UP WHERE ALL THESE STORIES ALWAYS WIND UP IN A SAD OVERHEATED FLEABAG OF A HOTEL WITH PLASTER CRACKING OFF THE WALLS AND WARM BEER LYING ON THE TABLE JUST ANOTHER DECREPIT JOINT SOUTH OF THE BORDER SWEATING SIN AND DECADENCE AND MORAL COLLAPSE WHY DO THESE FILMS ALWAYS COME OUT THE SAME IT'S A DISEASED CLICHED VISION THAT MUST BE SOME SORT OF TURISTA OF THE SCREEN THE MOVIE MAKER'S REVENGE TO MONTEZUMA'S REVENGE AND ALL YOU CAN SAY IS HASTA LA VISTA BABY 9308300092 930830 LEISURE & ARTS BOOKSHELF BEYOND COLD WAR PEACE AND TURMOIL ZONES BY CHARLES WOLF JR SINCE THE START OF THE POSTCOLD WAR ERA POLICYMAKERS PROFESSORS AND PUNDITS HAVE BEEN TRYING TO DESCRIBE AND ANALYZE IT MAX SINGER AND AARON WILDAVSKY PROPOSE A WAY THAT IS BROAD AND PROVOCATIVE IN THE REAL WORLD ORDER ZONES OF PEACE ZONES OF TURMOIL CHATHAM HOUSE PUBLISHERS CHATHAM NJ 212 PAGES 25 MR SINGER ONCE THE HEAD OF THE HUDSON INSTITUTE TO WHOSE FOUNDER HERMAN KAHAN THE BOOK IS DEDICATED AND MR WILDAVSKY A BERKELEY POLITICALSCIENCE PROFESSOR CONCEIVE OF THE REAL WORLD ORDER AS CONSISTING OF TWO FUNDAMENTALLY SEPARABLE BUT INTERACTING PARTS THE ZONES OF PEACE AND THE ZONES OF TURMOIL THE ZONES OF PEACE COMPRISE THE DEMOCRACIES OF WESTERN EUROPE THE US CANADA JAPAN AND THE ANTIPODES THESE MODERN DEMOCRACIES DO NOT GO TO WAR WITH ONE ANOTHER DO NOT EVEN SERIOUSLY IMAGINE THE POSSIBILITY OF BEING AT WAR WITH ONE ANOTHER MESSRS SINGER AND WILDAVSKY ACKNOWLEDGE THAT THERE WILL BE DISAGREEMENTS AND CONFLICTS AMONG MEMBERS OF THE ZONES OF PEACE BUT IT IS THEIR VIEW THAT THESE COUNTRIES WILL NOT BE DIVIDED INTO COMPETING MILITARY BLOCS SEEKING TO BALANCE EACH OTHER'S POWER NOR WILL THE POLITICAL RELATIONS AMONG THESE COUNTRIES BE INFLUENCED BY RELATIVE MILITARY POWER THIS IS SURELY AN ARGUABLE PROPOSITION CONSIDER THE EXTENT TO WHICH THE RELATIVE MILITARY POWER OF THE US AFFECTED ITS RELATIONS WITH OTHER G7 COUNTRIES IN DESERT STORM OR PROSPECTIVELY COULD AFFECT POLITICAL RELATIONS WITH THEM IN BOSNIA WHAT IS LESS ARGUABLE IS THE BOOK'S CONCLUSION THAT THE WORLD ORDER IN THE ZONES OF PEACE WILL BE FUNDAMENTALLY DIFFERENT FROM ANY PAST WORLD ORDER THE ZONES OF PEACE DESCRIBED BY THE AUTHORS CONTAIN ONLY 15 OF THE WORLD'S POPULATION THE REMAINING 85 LIVES IN THE ZONES OF TURMOIL AN IMMENSE SLOWLY BOILING CAULDRON AGITATED BY POWERFUL INTERNAL FORCES THAT ARE IMPOSSIBLE TO CONTROL WHERE POVERTY WAR TYRANNY AND ANARCHY WILL CONTINUE TO DEVASTATE LIVES MESSRS SINGER AND WILDAVSKY DO NOT IMPLY THAT THE ZONES OF TURMOIL ARE DOOMED TO CHAOS NEVERENDING BUT THEY THINK THAT 100 YEARS AT LEAST MIGHT PASS BEFORE ECONOMIC AND POLITICAL DEVELOPMENT WILL GRADUALLY ALLOW WEALTH DEMOCRACY AND PEACE TO SPREAD THROUGH THESE ZONES ACTUALLY ENVISAGING AN OUTCOME THAT FAR IN THE FUTURE COMES PRETTY CLOSE TO SAYING YOU MAY NOT BE ABLE TO GET THERE FROM HERE IN ELABORATING THEIR PARADIGM MESSRS SINGER AND WILDAVSKY ADVANCE MANY VALID AND PROVOCATIVE AS WELL AS ARGUABLE PROPOSITIONS THESE INCLUDE MILITARY FORCE WILL BE THE ULTIMATE DETERMINANT OF WHAT HAPPENS IN THE ZONES OF TURMOIL THE POINT HAS MERIT BUT SURELY UNDERVALUES THE INFLUENCE OF ECONOMIC FORCES MARKETS AND COMPETITION ACQUISITION OF NUCLEAR WEAPONS AS WELL AS CHEMICAL AND BIOLOGICAL WEAPONS WILL BE ATTRACTIVE TO COUNTRIES IN THE ZONES OF TURMOIL BECAUSE THE DEMOCRACIES WILL BE RELUCTANT TO INTERVENE IN CONFLICTS IN THE ZONES OF TURMOIL AGAINST A COUNTRY ARMED WITH NUCLEAR WEAPONS IN THE ZONES OF TURMOIL THE UNITED STATES HAS NO GEOPOLITICAL OR STRATEGIC INTERESTS IMPORTANT ENOUGH TO DOMINATE OUR POLICY CONSEQUENTLY OUR POLICY OUTSIDE OF ECONOMICS SHOULD BE TO SUPPORT PRINCIPLES CHOSEN TO TRY TO MAKE THE INTERNATIONAL ORDER SOMEWHAT MORE CIVILIZED PRIMARILY BY DEVELOPING AND ENFORCING TRADITIONAL INTERNATIONAL LAW THE AUTHORS DO NOT ACCEPT MUCH OF THE CONVENTIONAL WISDOM ABOUT THE FORMER SOVIET UNION WHICH THEY PLACE IN THE ZONES OF TURMOIL THEY BELIEVE THAT EVEN TOTAL CHAOS THERE WOULD BE UNLIKELY TO POSE A MAJOR RISK TO THE US OR A THREAT TO EUROPE OTHERS WILL DISAGREE WITH THIS JUDGMENT BECAUSE OF THE DANGERS POSED BY THE 30000 NUCLEAR WEAPONS IN RUSSIA AND UKRAINE AS WELL AS THE DIRE CONSEQUENCES THAT CHAOS MIGHT BRING THROUGH MASSIVE RUSSIAN MIGRATION WESTWARD ACCORDING TO MESSRS SINGER AND WILDAVSKY THOSE WHO ARGUE THAT AMERICAN NATIONAL SECURITY DEPENDS ON PRESERVING STABILITY IN RUSSIA EXAGGERATE WHAT US POLICY CAN POSSIBLY ACHIEVE THERE INSTEAD THEY SUGGEST THAT WE SHOULD ASSUME THAT INSTABILITY IS REASONABLY LIKELY AND DO WHAT WE CAN TO PROTECT OURSELVES AGAINST ITS DANGERS THE AUTHORS CONCLUDE THAT PEACE IN THE ZONES OF DEMOCRACY IS COMPATIBLE WITH WAR IN THE ZONES OF TURMOIL AND THE DIVISIBILITY OF PEACE IS ONE OF THE FUNDAMENTAL ADVANTAGES OF THE CURRENT WORLD ORDER THE REAL WORLD ORDER IS AN ORIGINAL AND THOUGHTPROVOKING CONTRIBUTION TO DEBATE ABOUT THE EXTRAORDINARY ERA THAT IS UPON US UNFORTUNATELY THE BOOK'S MERIT AND MESSAGE ARE MARRED BY TOO MUCH FIRSTDRAFT PROSE AND CARELESS EDITING NOW AND AGAIN THE BLUNTNESS IS REFRESHING AS IN THE AUTHORS' ASSESSMENT OF RUSSIA'S PREDICAMENT NO HOPE CAN BE EXPECTED FROM NO ECONOMY MR WOLF IS DEAN OF THE RAND GRADUATE SCHOOL AND DIRECTOR OF ECONOMIC RESEARCH AT RAND'S NATIONAL DEFENSE RESEARCH INSTITUTE BECAUSE OF A PRODUCTION ERROR IN CHARLES WOLF JR'S AUG 30 REVIEW OF THE REAL WORLD ORDER HERMAN KAHN'S NAME WAS MISSPELLED 9308300091 930830 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 15/16 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 306 30 TO 44 DAYS 310 45 TO 89 DAYS 311 90 TO 149 DAYS 320 150 TO 179 DAYS 322 180 TO 239 DAYS 330 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 311 30 DAYS 314 60 DAYS 314 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 305 ONE MONTH 309 THREE MONTHS 319 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 304 60 DAYS 305 90 DAYS 307 120 DAYS 315 150 DAYS 315 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 7/16 SIX MONTHS 3 9/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 656 JAPAN 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 23 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 302 13 WEEKS 312 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 664 60 DAYS 670 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 TE 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 9308300090 930830 SEC CHIEF CONSOLIDATES CONTROL OF REGIONAL OFFICES WASHINGTON IN HIS FIRST MAJOR MANAGEMENT MOVE SINCE TAKING THE HELM OF THE SECURITIES AND EXCHANGE COMMISSION CHAIRMAN ARTHUR LEVITT CONSOLIDATED CONTROL OF THE SEC'S 12 REGIONAL AND BRANCH OFFICES UNDER FIVE REGIONAL DIRECTORS ALL FIVE REGIONAL DIRECTORS WILL REPORT TO WILLIAM MCLUCAS HEAD OF THE SEC'S ENFORCEMENT DIVISION IN WASHINGTON IN THE PAST THE ADMINISTRATORS OF THE SEC'S REGIONAL OFFICES HAVE SHARED EQUAL RANKING AND REPORTED DIRECTLY TO THE CHAIRMAN OF THE SEC THOSE PROMOTED FROM REGIONAL ADMINISTRATOR TO THE NEW REGIONAL DIRECTORSHIPS ARE ELAINE CACHERIS OF THE LOS ANGELES OFFICE TO HEAD THE PACIFIC REGION ROBERT DAVENPORT OF DENVER TO HEAD THE CENTRAL REGION WILLIAM GOLDSBERRY OF CHICAGO TO HEAD THE MIDWEST REGION AND RICHARD WALKER OF NEW YORK TO HEAD THE NORTHEASTERN REGION MR LEVITT WHO HAS BEEN SEC CHAIRMAN LESS THAN SIX WEEKS DIDN'T IMMEDIATELY NAME A DIRECTOR FOR THE SOUTHEAST REGION COVERING THE SEC'S REGIONAL OFFICE IN ATLANTA AND ITS BRANCH IN MIAMI HE DID SAY IN A STATEMENT THAT THE REGIONAL BASE WILL SHIFT TO MIAMI FROM ATLANTA SEPARATELY MR LEVITT APPOINTED DONALD HOERL TO FILL THE VACANT ADMINISTRATOR'S POST IN THE SEC'S PHILADELPHIA OFFICE WHICH WILL BE PART OF THE NORTHEAST REGION MR HOERL AN 11YEAR VETERAN OF THE SEC SPENT THE PAST SIX YEARS AS HEAD OF THE SEC'S BRANCH OFFICE IN SALT LAKE CITY AND WAS PREVIOUSLY CHIEF TRIAL COUNSEL IN THE SEC'S DENVER OFFICE 9308300089 930830 CORRECTIONS & AMPLIFICATIONS GLENFED INC REORGANIZED AS GLENDALE FEDERAL BANK IN AN ARTICLE FRIDAY IT WAS INCORRECTLY STATED THAT GLENFED WAS SEEKING REORGANIZATION LEGENT CORP OF VIENNA VA ROSE 875 CENTS TO 19625 A SHARE IN NATIONAL OVERTHECOUNTER TRADING THURSDAY AN ARTICLE FRIDAY INCORRECTLY STATED THAT THE COMPANY IS BASED IN SAN FRANCISCO AND THAT ITS STOCK ROSE 4875 A SHARE 9308300088 930830 TRUMP SEEKING TO REGAIN FULL OWNERSHIP OF CASINO WASHINGTON DONALD TRUMP HAS FILED PLANS TO REGAIN FROM BONDHOLDERS TOTAL OWNERSHIP OF THE TRUMP CASTLE CASINO IN ATLANTIC CITY NJ AS PART OF A BROADER PLAN TO RECAPTURE FULL OWNERSHIP OF ALL OF HIS GAMBLING OPERATIONS THE TRUMP ORGANIZATION PLANS TO ASK HOLDERS OF 336 MILLION IN TRUMP CASTLE BONDS TO SWAP THEIR BONDS AND GIVE UP THEIR OWNERSHIP STAKE FOR NEW BONDS OFFERING HIGHER YIELDS ACCORDING TO PAPERS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BONDHOLDERS GAINED HALFOWNERSHIP WHEN THE CASINO EMERGED FROM BANKRUPTCY PROTECTION LAST YEAR HOLDERS OF EACH 1000 FIRSTMORTGAGE BOND YIELDING 9 1/2 WOULD RECEIVE 630 OF FIRSTMORTGAGE BONDS YIELDING 11 3/4 AND A 250 PAYMENTINKIND BOND YIELDING 13 7/8 FOR WHICH INTEREST COULD BE IN THE FORM OF MORE SECURITIES THE PLAN WOULD BE CONTINGENT ON 90 OF BONDHOLDERS AGREEING TO THE SWAP EARLIER THIS MONTH PUTNAM INVESTMENTS A BOSTON MONEY MANAGEMENT FIRM THAT HOLDS 22 OF THE BONDS NOTIFIED THE SEC THAT IT HAD AGREED TO SWAP ITS NOTES MR TRUMP IS SAID TO BE PREPARING TO ATTEMPT A SIMILAR DEAL FOR THE TRUMP TAJ MAHAL WHERE BONDHOLDERS ALSO HAVE A 50 OWNERSHIP STAKE WHICH SOME CASINO ANALYSTS SEE AS A PRELUDE TO A PUBLIC OFFERING OF HIS GAMBLING INTERESTS 9308300087 930830 MANPOWER'S SURVEY SEES HIRING RECOVERY SLOWLY CONTINUING MILWAUKEE EMPLOYMENT IN THE FOURTH QUARTER SHOULD CONTINUE THE SLOW RECOVERY BEGUN EARLIER THIS YEAR A QUARTERLY JOBOUTLOOK SURVEY SUGGESTS THE SURVEY BY MANPOWER INC PREDICTS THAT ON A SEASONALLY ADJUSTED BASIS 11 MORE EMPLOYERS WILL BE ADDING TO THEIR WORK FORCE IN THE FOURTH PERIOD THAN REDUCING THAT NETHIRING INCREASE COMPARES WITH 12 ESTIMATED FOR THE THIRD QUARTER AND THE 9 ESTIMATED FOR THE YEAREARLIER FOURTH QUARTER THE SURVEY CANVASSES ABOUT 15000 US FIRMS AND THE NETHIRING FIGURE IT PRODUCES REPRESENTS THE DIFFERENCE BETWEEN THE PERCENTAGE OF COMPANIES SAYING THEY PLAN TO ADD STAFF AND OF THOSE PLANNING TO REDUCE STAFF THE OUTLOOK IS VERY SIMILAR TO THE PRIOR NINE MONTHS OF THIS YEAR SAID MITCHELL FROMSTEIN PRESIDENT OF THE EMPLOYMENTSERVICES COMPANY HE SAID THAT HIRING STRENGTH IS RUNNING ABOUT SIX MONTHS TO A YEAR BEHIND THE PACE OF THE 198384 ECONOMIC RECOVERY BUT IT IS MAKING PROGRESS AND A SLOWDOWN IS NOT IN EVIDENCE AT THIS TIME HE SAID AMONG INDUSTRIES THE STRONGEST FOURTHQUARTER EMPLOYMENT GAINS ARE EXPECTED IN THE WHOLESALE AND RETAILTRADE SECTOR WHERE HIRING TRENDS HAVE BEEN HEALTHY ALL YEAR AND IN CONSTRUCTION AFTER ADJUSTING FOR SEASONAL FACTORS THESE INDUSTRIES ANTICIPATE NETHIRING INCREASES OF 13 MIRRORING THE NATIONAL NETHIRING GAIN OF 11 IS THE SERVICES SECTOR AND THE FINANCE INSURANCE AND REALESTATE SECTOR A 10 NETHIRING GAIN IS FORESEEN FOR MANUFACTURERS THE WEAKEST AREA IS THE PUBLICADMINISTRATION SECTOR WHICH PROJECTS A 4 NETHIRING GAIN FOLLOWED BY THE MINING SECTOR THE PUBLIC AND PRIVATEEDUCATION SECTOR AND THE TRANSPORTATION AND PUBLICUTILITIES SECTORS ALL OF WHICH FORESEE 6 INCREASES GEOGRAPHICALLY THE SOUTH AND THE MIDWEST SHOULD REMAIN THE MOST ACTIVE REGIONS FOR HIRING WITH NETHIRING GAINS OF 14 AND 11 RESPECTIVELY THE SURVEY INDICATES IN CONTRAST AMONG WESTERN EMPLOYERS THE GAIN IS EXPECTED TO BE ONLY 5 JOBS HAVE BEEN SCARCE THE PAST THREE YEARS IN THE WEST LARGELY BECAUSE OF CUTBACKS AMONG DEFENSE CONTRACTORS IN THE NORTHEAST A NETHIRING GAIN OF 8 IS ANTICIPATED 9308300086 930830 BUSINESS BRIEF NOBLE AFFILIATES UNIT TO BUY CERTAIN ASSETS OF FM PROPERTIES INC ARDMORE OKLA NOBLE AFFILIATES INC SAID ITS SAMEDAN OIL CORP UNIT AGREED TO BUY THE PRODUCING OIL AND GAS PROPERTIES OF FM PROPERTIES INC FOR 305 MILLION THE TRANSACTION DOUBLES THE SIZE OF NOBLE AFFILIATES THE PROPERTIES ALSO ARE EXPECTED TO INCREASE NOBLE'S FOURTHQUARTER OIL AND GAS PRODUCTION BY ABOUT 50 SAID WILLIAM D DICKSON THE COMPANY'S VICE PRESIDENT OF FINANCE THE PROPOSED SALE IS EXPECTED TO CLOSE OCT 1 NOBLE ESTIMATED THE NET PROVED RESERVES ATTRIBUTABLE TO THE PROPERTIES IT IS ACQUIRING TO BE 216 MILLION BARRELS OF OIL LOCATED PRINCIPALLY IN THE SOUTH BELRIDGE FIELD KERN COUNTY CALIF THE RESERVES ALSO INCLUDE 253 BILLION CUBIC FEET OF GAS IN MONTANA EASTERN COLORADO AND OFFSHORE LOUISIANA THE COMPANY ESTIMATES THE NEW PROPERTIES ARE PRODUCING ABOUT 5000 BARRELS OF OIL AND 115 CUBIC FEET OF GAS A DAY THE PURCHASE IS THE SECOND MAJOR TRANSACTION NOBLE HAS UNDERTAKEN SINCE JUNE WHEN IT BOUGHT MAJORITY INTERESTS IN CERTAIN OIL AND NATURALGAS PROPERTIES IN THE GULF OF MEXICO FROM FREEPORTMCMORAN INC AN AFFILIATE OF FM PROPERTIES FOR 100 MILLION ALSO IN CASH MR DICKSON SAID NOBLE EXPECTS TO FINANCE THESE PURCHASES WITH DEBT AND ANTICIPATES NO TROUBLE IN DOING SO IN 1992 NOBLE HAD NET INCOME OF 412 MILLION AFTER A 18 MILLION ONETIME GAIN ON REVENUE OF 3037 MILLION IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY NOBLE SHARES CLOSED UP 1 AT 27625 9308300085 930830 COTTON EXCHANGE BIG BOARD DISCUSSIONS ARE CALLED INFORMAL NEW YORK THE NEW YORK COTTON EXCHANGE IS HOLDING INFORMAL TALKS WITH THE NEW YORK STOCK EXCHANGE TO ACQUIRE THE BIG BOARD'S SMALL FUTURESTRADING UNIT THE NEW YORK FUTURES EXCHANGE OR NYFE OFFICIALS CONFIRMED THE FINANCIAL TIMES REPORTED FRIDAY THAT THE TALKS WERE IN AN ADVANCED STAGE AND THAT A TAKEOVER OF NYFE BY THE COTTON EXCHANGE COULD BE COMPLETED BY SEPT 2 BUT COTTON EXCHANGE OFFICIALS SAID THE DISCUSSIONS WERE PART OF A CONTINUING PROCESS AND WERE FAR FROM COMPLETE FINANCIAL TERMS HAVEN'T BEEN DISCUSSED THEY SAID ARE THE DISCUSSIONS CLOSE TO FRUITION ABSOLUTELY NOT SAID JOSEPH O'NEILL PRESIDENT OF THE COTTON EXCHANGE THE EXCHANGE WHICH HAS AN ACTIVE FUTURESTRADING SUBSIDIARY THE FINEX SEES MERIT IN A MERGER WITH THE SMALLER NYFE HE SAID THE FINEX TRADES DOLLARINDEX FUTURES TWO AND FIVEYEAR TREASURY NOTE FUTURES AND EUROPEAN CURRENCY UNIT FUTURES THE NYFE A WHOLLY OWNED SUBSIDIARY OF THE EXCHANGE TRADES FUTURES ON THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 FUTURES CONTRACTS AND ON THE BIG BOARD'S STOCK EXCHANGE COMPOSITE INDEX THE COTTON EXCHANGE CORE PRODUCTS INCLUDE COTTON FUTURES AND FROZEN CONCENTRATEDORANGE JUICE FUTURES A NEW YORK STOCK EXCHANGE SPOKESMAN SAID THE TALKS WERE INFORMAL AND THAT MANY DETAILS HAD TO BE WORKED OUT THE TALKS COME ON THE HEELS OF MERGER NEGOTIATIONS BETWEEN NEW YORK'S COMMODITY EXCHANGE AND THE NEW YORK MERCANTILE EXCHANGE 9308300084 930830 ABREAST OF THE MARKET INVESTORS AMID UNCERTAINTY VACILLATE BETWEEN GROWTH AND CYCLICAL ISSUES BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL AGAIN THAT NAGGING QUESTION GROWTH OR CYCLICAL EVEN AS THE STOCK MARKET HAS MOVED INTO RECORD TERRITORY INVESTORS HAVE DEMONSTRATED A PROFOUND LACK OF CONVICTION ABOUT WHICH STOCKS THEY WANT TO OWN TRADITIONAL GROWTH STOCKS SUCH AS DRUGS FOOD AND TOBACCO HELPED IGNITE THE RECORDBREAKING RALLY THAT BEGAN TWO WEEKS AGO INVESTORS PREFER THESE LARGE CONSUMER NONDURABLES IN WEAK ECONOMIC TIMES BECAUSE THEY TEND TO MAINTAIN EARNINGS GROWTH EVEN WHEN THE ECONOMY STALLS BUT EARLY LAST WEEK INVESTORS TURNED UPBEAT ABOUT THE ECONOMY AND PILED INTO ECONOMICALLY SENSITIVE STOCKS EXPECTING THEIR PRICES TO IMPROVE ALONG WITH ECONOMIC GROWTH BY WEEK'S END HOWEVER FRESH ECONOMIC CONCERNS PUT PRESSURE ON BOTH STOCK GROUPS INVESTORS ARE OSCILLATING BETWEEN CYCLICALS AND GROWTH BECAUSE THERE IS SO MUCH UNCERTAINTY ABOUT THE FUTURE SAYS SUNG WON SOHN CHIEF ECONOMIST AT NORWEST CORP IN MINNEAPOLIS THIS KIND OF SHUTTLING BACK AND FORTH WILL CONTINUE UNTIL CLEAR SIGNS EMERGE ABOUT THE STRENGTH OF THE ECONOMY BUT GROWTH STOCKS MAY VERY WELL COME BOUNCING BACK INTO THE SPOTLIGHT SAYS MR SOHN HE PREDICTS THAT THE ECONOMY AT BEST WILL EKE OUT ONLY MARGINAL GROWTH WHICH WILL ENCOURAGE SOME INVESTORS TO SEEK THE STEADY EARNINGS OF THE BIG CONSUMER STOCKS MOREOVER THE DRUGS FOODS AND TOBACCOS HAVE BEEN SHUNNED FOR SO LONG THAT THEY ARE NOW EXCELLENT BARGAINS HE SAYS PEOPLE ARE REDISCOVERING THE VALUE IN THOSE SHARES ESPECIALLY IN LIGHT OF THE ECONOMIC UNCERTAINTY SAYS MR SOHN MANY INVESTORS WROTE THE DEATH WARRANTS FOR LARGE GROWTH STOCKS MONTHS AGO AS IT BECAME INCREASINGLY CLEAR THAT AMERICA'S BUYING HABITS HAD CHANGED CONSUMERS HAD BECOME VALUECONSCIOUS PREFERRING LOWPRICE PRODUCTS TO THE HIGHERPRICED BRAND NAMES BUT MR SOHN SAYS IT MAY BE UNWISE TO GIVE UP ON SUCH GIANT COMPANIES AS PHILIP MORRIS MERCK AND PROCTER & GAMBLE THESE COMPANIES AREN'T GOING TO LIE DOWN AND PLAY DEAD HE SAYS INDEED HE POINTS OUT THAT JUST LIKE THEIR INDUSTRIAL COUNTERPARTS THE BIG GROWTH COMPANIES ARE CUTTING COSTS AND RESTRUCTURING MR SOHN SEES A TIME WHEN THESE COMPANIES WILL PROVIDE VALUE TO CONSUMERS FOR THEIR BRANDED PRODUCTS TO ME IT'S A CLASSIC CASE OF THE MARKET MECHANISM WORKING BUT DON'T TRY TO CONVINCE DONALD SMITH PRESIDENT OF MONEY MANAGEMENT FIRM DONALD SMITH & CO IN PARAMUS NJ MR SMITH WHO MANAGES MORE THAN 500 MILLION IS FULLY COMMITTED TO ECONOMICALLY SENSITIVE STOCKS THOUGH HE DOES CONCEDE THAT GROWTH STOCKS MAY HAVE SHORT PERIODS OF GLORY WHEN INVESTORS GET JITTERY ABOUT THE ECONOMY MR SMITH ARGUES THAT A NEW DAY HAS DAWNED THE BIG CONSUMER NONDURABLES REIGNED IN THE 1980S WHEN EVERY PULLBACK IN PRICE WAS A CHANCE TO BUY THEM NOW EVERY RALLY IS A CHANCE TO SELL THEM HE SAYS MR SMITH ISN'T ENTICED BY THE LOW PRICES FOR GROWTH STOCKS EVEN THOUGH SOME ARE TRADING AT PRICEEARNINGS RATIOS BELOW THE MARKET'S HE BELIEVES THE COMPANIES' EARNINGS GROWTH WON'T JUSTIFY EVEN THOSE LEVELS TO BUY THE CONSUMER NONDURABLES JUST BECAUSE THEY'RE CHEAP IS A TRAP THE REALLY CHEAP STOCKS ARE THE INDUSTRIALS WHERE THE EARNINGS MOMENTUM AND CORPORATE TURNAROUNDS ARE ALREADY IN PLACE MR SMITH SAYS CYCLICAL STOCKS ARE LIKE CONSUMER NONDURABLES WERE IN THE 1980S THEIR RETURNS ON PROFIT MARGINS KEEP GOING UP IT'LL SHOCK PEOPLE HOW MUCH THESE COMPANIES WILL EARN IN THE NEXT FOUR TO FIVE YEARS AMONG HIS FAVORITE PICKS ARE GENERAL MOTORS MCDONNELL DOUGLAS AND BOISE CASCADE THESE COMPANIES HAVE GONE THROUGH AN INDUSTRIAL DEPRESSION AND ARE NOW BECOMING WORLDCLASS COMPETITORS MR SMITH SAYS EVEN SOME TRADITIONAL GROWTH STOCK MANAGERS ARE RECOGNIZING THAT A NEW ERA IS EMERGING BUT THESE MANAGERS WHILE STILL STICKING WITH THE GROWTHSTOCK DISCIPLINE ARE LEAVING THE OLD FAVORITES BEHIND THE MAJOR THEMES FOR GROWTH STOCK MANAGERS HAVE SHIFTED SAYS DENNIS LYNCH PRESIDENT OF LYNCH & MAYER A GROWTH STOCK MANAGER WITH 47 BILLION UNDER MANAGEMENT THE WAY YOU MADE MONEY INVESTING IN GROWTH STOCKS IN THE PAST IS NOT NECESSARILY HOW TO MAKE MONEY GOING FORWARD IN THE PAST YEAR MR LYNCH'S PORTFOLIO HAS UNDERGONE A RADICAL CHANGE MR LYNCH NOW FOCUSES ON COMPANIES THAT HAVE STRONG UNIT SALES RATHER THAN ON THE TRADITIONAL GROWTH COMPANIES THAT BOLSTERED EARNINGS BY RAISING PRICES AS A RESULT CONSUMER NONDURABLES FELL TO ABOUT 5 OF HIS PORTFOLIO FROM 35 IN THE LAST YEAR AT THE SAME TIME TECHNOLOGY GREW TO 30 FROM 17 AND FINANCIAL STOCKS INCREASED TO 20 FROM 14 AMONG HIS LARGEST HOLDINGS ARE MOTOROLA MCCAW CELLULAR AND MCI COMMUNICATIONS WHILE THE CHANGES POSITION THE PORTFOLIO FOR STRONG FUTURE GAINS MR LYNCH CONCEDES THAT THE ADJUSTMENT HASN'T BEEN EASY AS VALUE MANAGERS HAVE OUTPERFORMED GROWTH IN ANY GUISE OVER THE PAST YEAR AT LEAST HIS PORTFOLIO HAS LAGGED BEHIND STANDARD & POOR'S 500STOCK INDEX BY ABOUT THREE PERCENTAGE POINTS IN THE PAST 12 MONTHS IT HASN'T BEEN A PAINLESS TRANSITION MR LYNCH SAYS WE'RE STILL STRUGGLING AGAINST VALUE MANAGERS WHO HAVE REAPED MOST OF THE BENEFITS OVER THE LAST SIX QUARTERS SOME MONEY MANAGERS DON'T EVEN BOTHER TRYING TO GUESS WHETHER GROWTH OR CYCLICAL WILL DOMINATE ROBERT STOVALL PRESIDENT OF MONEY MANAGEMENT FIRM STOVALL/TWENTYFIRST ADVISERS PREFERS REDUCING HIS RISK BY STAYING NEUTRAL AMONG SECTORS HIS STRATEGY INVOLVES BUYING A FAVORED STOCK IN AN INDUSTRY WHILE AT THE SAME TIME SHORTING WHAT HE REGARDS AS THAT INDUSTRY'S LAGGARD SHORTING IS THE SALE OF A BORROWED STOCK IN THE HOPE THAT IT CAN BE REPLACED LATER AT A LOWER PRICE FOR INSTANCE LATELY MR STOVALL HAS BEEN BUYING CHRYSLER AND SHORTING GENERAL MOTORS BUYING SEARS AND SHORTING NORDSTROM AND BUYING PFIZER WHILE SHORTING SYNTEX THE APPROACH HAS RETURNED ABOUT 11 ANNUALLY SINCE 1986 MR STOVALL SAYS WITH HIS PORTFOLIO GAINING 7 THROUGH THIS JULY MR STOVALL VIEWS THE RECENT ROTATION BETWEEN CYCLICAL AND GROWTH AS A TRADING PLAY THAT HE DOESN'T RECOMMEND TO INDIVIDUAL INVESTORS IF HE OR SHE WANTS TO TRADE THROUGH A DISCOUNT BROKER AND MOVE IN AND OUT OF DEERE AND PHILIP MORRIS MORE POWER TO THEM HE SAYS I CAN'T DO IT I'M STILL LEARNING THIS GAME AND I'VE BEEN IN IT FOR 40 YEARS STOCK PRICES FELL AMID DECLINING BOND PRICES THE DOW JONES INDUSTRIAL AVERAGE LOST 755 POINTS TO 364063 STANDARD & POOR'S 500STOCK INDEX EDGED DOWN 050 TO 46054 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 043 TO 25540 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX INCHED UP 079 TO A RECORD 45499 FOR THE WEEK THE INDUSTRIAL AVERAGE GAINED 070 THE S&P 500 ROSE 096 AND THE BIG BOARD COMPOSITE WAS UP 085 WORLDWIDE STOCK PRICES ROSE FRIDAY IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 055 TO 11252 THE DOW INDUSTRIALS WERE DOWN AS MUCH AS 20 POINTS BEFORE RECOVERING SOMEWHAT LATE IN THE DAY ANALYSTS SAID INVESTORS TOOK PROFITS AFTER THE MARKET'S RECENT RUNUP A SLOWDOWN IN THE BOND MARKET'S RALLY FRIDAY GAVE INVESTORS AN EXCUSE TO SELL THE TREASURY'S BENCHMARK 30YEAR BOND FELL 3/4 POINT FRIDAY WITH YIELD RISING TO 614 NATIONAL MEDICAL ENTERPRISES PLUNGED 3 3/8 TO 7 3/4 FEDERAL BUREAU OF INVESTIGATION AGENTS RAIDED FACILITIES OF THE SANTA MONICA CALIF HOSPITAL AND REHABILITATION COMPANY THURSDAY GOVERNMENT AGENCIES ARE LOOKING INTO POSSIBLE CRIMINAL MISCONDUCT NATIONAL MEDICAL'S SHARES TOPPED THE BIG BOARD'S MOSTACTIVE LIST WITH VOLUME OF 81 MILLION SHARES AMERICAN TELEPHONE & TELEGRAPH CLIMBED 2 TO 62 3/4 ON HEAVY VOLUME OF 33 MILLION SHARES THE TELECOMMUNICATIONS GIANT IS IN TALKS WITH CABLE TELEVISION COMPANIES ABOUT PLANS TO CREATE A NATIONAL MULTIMEDIA COMMUNICATIONS NETWORK ENTERTAINMENT AND COMMUNICATIONS STOCKS ALSO ROSE TIME WARNER WAS UP 7/8 TO 41 1/8 PARAMOUNT COMMUNICATIONS 1 1/2 TO 55 7/8 AND CABLEVISION SYSTEMS 1 1/4 TO 45 1/2 SOLECTRON CLIMBED 2 5/8 TO 40 AFTER MERRILL LYNCH RAISED ITS INTERMEDIATETERM INVESTMENT RATING ON THE STOCK TO ABOVE AVERAGE FROM NEUTRAL SOLECTRON PLUNGED EARLIER IN THE MONTH AFTER MERRILL REDUCED ITS ESTIMATES OF ITS EARNINGS IMC FERTILIZER LOST 2 1/2 TO 29 5/8 THE COMPANY PREDICTED THAT IT WILL HAVE A LOSS FOR THE FIRST QUARTER WHICH ENDS NEXT MONTH IT CITED WEAK DEMAND FOR POTASH AND LOW PHOSPHATE PRICES DOW CHEMICAL DECLINED 1 3/4 TO 60 1/8 DEAN WITTER REYNOLDS DOWNGRADED THE STOCK TO NEUTRAL FROM ACCUMULATE ANALYST HARVEY STOBER SAID THE MOVE REFLECTS RECENT GAINS IN ITS SHARE PRICE AS WELL AS CONCERN ABOUT THE OUTLOOK FOR THE CONCERN'S CONSUMER SPECIALTY PRODUCTS BUSINESS WESTERN WASTE INDUSTRIES INCREASED 2 1/2 TO 15 3/4 THE SOLIDWASTESERVICES PROVIDER SAID IT IS IN VERY PRELIMINARY TALKS ABOUT A POSSIBLE MERGER OR OTHER BUSINESS COMBINATION THE STOCK JUMPED 2 THURSDAY AHEAD OF WESTERN'S ANNOUNCEMENT US BIOSCIENCE ADDED 1 TO 9 1/4 HAMBRECHT & QUIST BEGAN COVERAGE OF THE COMPANY WITH A BUY RATING 9308300083 930830 THE BULL MARKETS TO COME BY RON CHERNOW THE MASSIVE INFLUX OF MUTUAL FUND MONEY INTO THE STOCK MARKET HAS PROPELLED THE DOW JONES INDUSTRIAL AVERAGE TO RECORD LEVELS EVEN AS IT HAS ADDED TO SUMMERTIME PERSPIRATION ON WALL STREET AS A RULE THE SMALL INVESTOR'S BELATED ARRIVAL AT THE PARTY SUGGESTS THAT THE HOUR IS LATE THE CHAMPAGNE FLAT AND THE SMART MONEY ALREADY HEADING FOR THE DOOR AS AUTUMN APPROACHES WE SHALL SEE WHETHER THIS TIMEWORN SIGNAL FOR MARKET TOPS PROVES TRUE YET THE SHORTTERM DEBATE ABOUT THE STOCK MARKET TREND SHOULDN'T OBSCURE A HISTORIC SHIFT SO MOMENTOUS THAT IT TENDS TO ESCAPE NOTICE ALMOST SIX YEARS AFTER ONE OF THE CENTURY'S MAJOR FINANCIAL BLOWOUTS THE AMERICAN PUBLIC HASN'T RENOUNCED ITS ROMANCE WITH STOCKS THAT STOCKS SHOULD AGAIN ENJOY A VOGUE HOWEVER FLEETING REPRESENTS AN ASTOUNDING REVERSAL OF PRECEDENT CONSIDER THE USUAL PATTERN IN THE EARLY 1900S OR THE LATE 1920S WHEN THE BOOTBLACK CABBY AND HAIRDRESSER SHOWED AN INTEREST IN STOCKS SAVVY INVESTORS RAN TO CASH IN THEIR PROFITS A SOCIAL HIERARCHY GOVERNED FINANCIAL MARKETS WHEN THE STOCK CRAZE FILTERED DOWN TO THE MASSES THE END WAS NIGH AFTER THE MARKET PLUNGED THE LITTLE PEOPLE FELT SUCKERED BY THEIR SOCIAL BETTERS AND SWORE OFF STOCKS FOR YEARS FEEDING POPULAR RESENTMENT OF BOTH STOCKS AND THE RICH THE 1929 CRASH INITIATED A BEAR MARKET SO SEVERE THAT AN ENTIRE GENERATION LOST FAITH IN FINANCIAL ASSETS IT WAS HARD FOR STOCKS TO SHAKE OFF THIS STIGMA AFTER WORLD WAR II CHARLES MERRILL THE FOUNDER OF MERRILL LYNCH TRIED TO WOO BACK SMALL INVESTORS BY PROVIDING THEM WITH SUPERIOR RESEARCH TO CONQUER A RESIDUAL CYNICISM LEFT OVER FROM THE JAZZ AGE HE COMPENSATED HIS STOCK BROKERS THROUGH SALARIES RATHER THAN COMMISSIONS REMOVING THEIR TEMPTATION TO CHURN ACCOUNTS IN THE 1950S KEITH FUNSTON PRESIDENT OF THE NEW YORK STOCK EXCHANGE TRIED TO DRUM UP ENTHUSIASM FOR COMMON STOCKS BY TOUTING INVESTING AS A FORM OF PEOPLE'S CAPITALISM A SORT OF EARLY FINANCIAL THATCHERISM TARGETING THE SMALL INVESTOR HE INTRODUCED THE MONTHLY INVESTMENT PLAN BY WHICH ORDINARY MORTALS COULD PLEDGE AS LITTLE AS 40 A MONTH TO STOCKS BUT IT WAS ONLY WHEN A NEW GENERATION OF INVESTORS APPEARED THAT STOCKS RETURNED TO FAVOR IN THE 1960S THE GHASTLY BEAR MARKET OF 197374 TRIGGERED BY THE SPIKE IN ARAB OIL PRICES AGAIN DROVE HORDES OF SMALL INVESTORS FROM THE MARKET THE SITUATION TODAY SIX YEARS AFTER THE 1987 CRASH IS CONSPICUOUSLY DIFFERENT IN 1992 78 BILLION OF NEW MONEY FLOWED INTO STOCK FUNDS ANOTHER 93 BILLION INTO BOND FUNDS AND AN ADDITIONAL 15 BILLION INTO TAXEXEMPT BOND FUNDS THIS YEAR SHOULD ECLIPSE LAST YEAR'S TALLY TO BE SURE THE MAJORITY OF MUTUAL FUND CASH IS HEADING INTO BONDS NOT STOCKS YET THE GROWTH IN EQUITY FUNDS IS EXTRAORDINARY GIVEN THAT THE MEMORY OF THE 1987 CRASH REMAINS ALL TOO FRIGHTENINGLY VIVID IN THE MINDS OF MOST INVESTORS BEYOND THE SHEER VOLUME OF POPULAR PARTICIPATION IN THE STOCK MARKET ONE IS STRUCK BY THE CENTRAL PLACE OF CAPITAL MARKETS IN AMERICAN LIFE TODAY NEW FINANCIAL MEDIA ABOUND IN THE FORM OF CABLE TV SHOWS PERSONAL INVESTING MAGAZINES NEWSLETTERS AND ASSORTED TIP SHEETS STOCKS ARE SO AVIDLY TRACKED THAT WE FIND IT PERFECTLY NATURAL THAT NIGHTLY NEWS SHOWS REPORT THE WALL STREET AVERAGES THE CULTURE OF INVESTING HAS BECOME AN ABIDING PART OF THE AMERICAN SCENE SKEPTICS WILL PROTEST THAT THE CURRENT INFATUATION WITH STOCKS IS TEMPORARY AND NOTHING MORE THAN DISGUISED DESPERATION FACED WITH A DECLINE IN INTEREST RATES UNPRECEDENTED IN MODERN TIMES SEDATE PEOPLE WHO PREFER SAFE TBILLS OR CERTIFICATES OF DEPOSIT ARE NOW FORCED TO GAMBLE CHASING HIGHER BUT EVER RISKIER RETURNS IN STOCK AND BOND FUNDS THE STOCK MARKET IS THUS DANGEROUSLY CROWDED WITH SKITTISH AMATEURS WHO WILL BOLT FOR THE FIRE EXIT AT THE FIRST WHIFF OF SMOKE NO DOUBT THE STUNNING FALL IN INTEREST RATES HAS DEPRIVED PEOPLE OF EXPECTED INCOME ENCOURAGING THEM TO GAMBLE MANY ARE NAIVE INEXPERIENCED AND LIKELY TO EXPERIENCE RUDE SHOCKS PRECISELY BECAUSE THE STOCK MARKET RETRACED LOST GROUND AND SOARED TO RECORD HIGHS AFTER OCTOBER 1987 THERE IS TOO MUCH COMPLACENCY ESPECIALLY AMONG YOUNG INVESTORS WHO HAVE NO EXPERIENCE OF PROLONGED BEAR MARKETS MANY PEOPLE CHERISH THE ILLUSION THAT BY INVESTING IN PROFESSIONALLY MANAGED MUTUAL FUNDS THEY ARE SOMEHOW INSULATED FROM RISK YET I SUSPECT THE MIDSUMMER MADNESS FOR MUTUAL FUNDS WILL PERSIST AND GROW A PROFOUND SEA CHANGE IS SWEEPING OUR FINANCIAL CULTURE ONE RIPE WITH CONSEQUENCES FOR OUR POLITICAL LIFE THE AGING POPULATION THE PERCEIVED INADEQUACY OF SOCIAL SECURITY ESPECIALLY AFTER PRESIDENT CLINTON'S BOOST ON THE TAXABLE PORTIONS THE SHAKY STATE OF CORPORATE AND GOVERNMENT PENSION PLANS THE STRATOSPHERIC COST OF LONGTERM HEALTH AND NURSING CARESUCH FACTORS HAVE AWAKENED ANXIETY ABOUT RETIREMENT AMONG BABYBOOMERS THE MESSAGE IS CLEAR PEOPLE WILL EITHER ACTIVELY MANAGE THEIR OWN FINANCIAL DESTINIES OR SUFFER IN THE FUTURE AS MORE MONEY FLOWS INTO A VAST ARRAY OF NEW RETIREMENT ACCOUNTS IT SHOULD PROVIDE A BROAD STABLE BASE FOR THE STOCK MARKET THIS BY NO MEANS PRECLUDES CORRECTIONS OR EVEN CRASHES BUT IT DOES INTRODUCE A POWERFUL AND ENDURINGLY BULLISH FACTOR IN THE MARKET SENSING THESE SHIFTS THE FINANCIAL SERVICES INDUSTRY IS MARKETING FAR MORE COMPREHENSIVE FORMS OF FINANCIAL PLANNING THE CASH MANAGEMENT OR WRAPFEE ACCOUNTS AT BROKERAGE HOUSES THE VARIABLE LIFE POLICIES AND ANNUITIES AT INSURANCE COMPANIES THE FAMILIES OF MUTUAL FUNDS OFFERED BY BANKS THE DIVERSIFIED ASSETALLOCATION MUTUAL FUNDS THE BREADTH OF CHOICE PRESENTED BY MANY 401K PLANS IRAS AND KEOGH PLANS ALL THESE APPEAL TO AND DEMAND NEW INVESTOR ACTIVISM TO STAY ABREAST OF INFLATION FLEETFOOTED CONSUMERS WILL HAVE TO ALLOCATE ASSETS AMONG MORE FINANCIAL VEHICLES THAN EVER BEFORE ONE CAN SPOT GLARING PITFALLS IN THIS BRAVE NEW UNIVERSE MANY SELFSTYLED FINANCIAL CONSULTANTS ARE POORLY QUALIFIED TO MANAGE DIVERSE PORTFOLIOS WE MAY BE ABANDONING TOO QUICKLY TRADITIONAL STODGY RETIREMENT INVESTMENTS THAT ENTAILED LITTLE OR NO RISK AND THE STRATEGIC SHIFT BY EMPLOYERS FROM DEFINEDBENEFIT PLANS WITH FIXED OUTCOMES TO DEFINEDCONTRIBUTION PLANS WITH WILDLY UNCERTAIN OUTCOMES SHIFTS THE BURDEN OF RISK TO EMPLOYEES IN HINDSIGHT THE PROVERBIAL LITTLE PEOPLE MAY FEEL THAT THEY WERE GUINEA PIGS IN AN UNWELCOME EXPERIMENT IN RETIREMENT PLANNING BUT ONE MUST ALSO NOTE THE STRIKING BENEFITS IN THIS MORE DEMOCRATIC INVESTING NEVER BEFORE IN AMERICAN HISTORY HAVE SO MANY MIDDLECLASS PEOPLE ENJOYED SOMETHING AT LEAST FAINTLY RESEMBLING THE PRIVATE BANKING AVAILABLE TO THE RICH THE FINANCIAL SERVICES INDUSTRY IS DECREASINGLY SEGREGATED BY CLASS THE DEEPER INVOLVEMENT OF MAIN STREET IN THE WORLD OF WALL STREET HAS STRONG POLITICAL RAMIFICATIONS TO A DEGREE PERHAPS UNIQUE IN OUR POLITICAL CULTURE THE HEALTH OF THE CAPITAL MARKETS IS SEEN AS A BELLWETHER OF SUCCESS THE LONGTERM BOND MARKET HAS BECOME THE NEW GREEK CHORUS OF AMERICAN POLITICS AS IT CHANTS ITS DOUR DAILY COMMENTARY ON ECONOMIC POLICY IN WASHINGTON IN PROMOTING HIS ECONOMIC PACKAGE PRESIDENT CLINTON HAS SHOWN SOLICITUDE FOR THE BOND MARKET THAT IS TELLING IN A POPULIST DEMOCRAT THE DECLINE IN LONGTERM INTEREST RATES HAS BEEN HIS GREATEST BOAST ANY SIZABLE TRANSFER OF FUNDS FROM BANKS TO STOCKS ALTERS POPULAR PERCEPTIONS FOR THE TYPICAL CONSUMER A BANK IS A BLACK BOX WITH DEPOSITS GOING IN ONE END AND LOANS COMING OUT THE OTHER BUYING A STOCK OR BOND IS FAR MORE TRANSPARENT ENABLING CONSUMERS TO SEE DIRECT CAUSAL LINKS BETWEEN SAVINGS AND ECONOMIC EXPANSION IN THE FUTURE THIS MAY CAUSE THEM TO WORRY NOT ONLY ABOUT THE SIZE OF THEIR PAYCHECKS BUT ABOUT GENERAL CORPORATE PROFITABILITY MORE AMERICANS MAY WELL ASSUME ATTITUDES FORMERLY CONFINED TO A THIN STRATUM OF CREDITORS AT THE TOP THE SEESAW BATTLE THAT HAS HISTORICALLY RAGED BETWEEN DEBTORS WHO FAVOR INFLATION AND CREDITORS WHO LIKE HARD MONEY WILL TILT MORE TOWARD THE LATTER ONE BENEFICIAL BYPRODUCT OF THE NEW INVESTMENT STYLE IS THE GROWING POPULARITY OF FOREIGN STOCK FUNDS WHICH NOW SIPHON OFF ABOUT 10 OF NEW MONEY FLOWING INTO EQUITY FUNDS AMERICAN INVESTORS HAVE AWAKENED TO THE OUTER WORLD WITH MUTUAL FUNDS ACTING AS THEIR INTERMEDIARIES THIS SHOULD BOLSTER SUPPORT FOR FREE TRADE AND CAPITAL FLOWS WASHINGTON HAS YET TO CONSIDER MUCH LESS FATHOM WHAT ALL THIS MEANS FOR THE FUTURE OF THE FINANCIAL SERVICES INDUSTRY AS THE OLD DISTINCTION BETWEEN CURRENT INVESTING AND RETIREMENT PLANNING BREAKS DOWN BANKS BROKERAGE HOUSES AND INSURERS ARE HOTLY COMPETING FOR A COMMON POOL OF MONEY THAT SPILLS OVER THE ARCHAIC REGULATORY BARRIERS THE CONVERGENCE OF THE FINANCIAL INDUSTRY CONTINUES APACE DESPITE THIS LEGAL SEGMENTATION ONE DAY WASHINGTON WILL HAVE TO REVISIT THE POLICY TOPIC THAT IT LIKES LEAST FINANCIAL REFORM AND RESTRUCTURING IN THE MEANTIME A NEW FINANCIAL WORLD IS EVOLVING AND ADDING AT LEAST A TEMPORARY EXCITEMENT TO WALL STREET THIS SUMMER MR CHERNOW IS THE AUTHOR OF THE HOUSE OF MORGAN HIS SAGA OF THE WARBURG BANKING DYNASTY THE WARBURGS WILL BE PUBLISHED BY RANDOM HOUSE NEXT MONTH 9308300082 930830 LAW LEGAL BEAT INHOUSE LEGAL ADVICE IS BIASED ON SHAREHOLDER SUITS JUDGE RULES BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL INHOUSE COUNSEL ARE UNABLE TO OFFER UNBIASED ADVICE ABOUT WHETHER THEIR COMPANY SHOULD SETTLE SHAREHOLDER SUITS A FEDERAL JUDGE RULED THE SAN FRANCISCO JUDGE REJECTED A PROPOSED SETTLEMENT OF SEVERAL LAWSUITS INVOLVING ORACLE CORP BECAUSE HE SAID IT WAS UNCLEAR WHETHER THE INHOUSE LAWYER HAD THE BEST INTERESTS OF THE COMPANY OR ITS OFFICERS AND DIRECTORS AT HEART THE SUITS ALLEGED THAT OFFICERS AND DIRECTORS HAD MISMANAGED THE COMPANY AND THAT THE COMPANY VIOLATED FEDERAL SECURITIES LAWS BY FAILING PROMPTLY TO DISCLOSE NEGATIVE FINANCIAL INFORMATION THE CASE RAISED THE MUCHDEBATED QUESTION OF WHETHER THE ROLE OF AN INHOUSE LAWYER DIFFERS FROM THAT OF AN ATTORNEY AT A LAW FIRM IT ALSO SHEDS LIGHT ON A RELATED PROBLEM THAT GENERAL COUNSEL MAY FIND THEIR LOYALTIES TORN BETWEEN THE OFFICERS WHO HIRED THEM AND THE COMPANY'S SHAREHOLDERS IT'S PART OF THIS WHOLE NOTION THAT THERE IS A SIGNIFICANT MORAL ETHICAL AND INTELLECTUAL DIFFERENCE BETWEEN HOUSE COUNSEL AND OUTSIDE COUNSEL SAID NORMAN KRIVOSHA VICE CHAIR OF THE AMERICAN CORPORATE COUNSEL ASSOCIATION IN WASHINGTON MR KRIVOSHA WHO IS GENERAL COUNSEL FOR AMERITAS LIFE INSURANCE CORP LINCOLN NEB CALLED THE RULING TERRIBLE OUTSIDE LAWYERS ARE JUST AS LIKELY TO HAVE A BIAS TOWARD THE CORPORATE OFFICERS WHO HIRED THEM HE SAID THE ORACLE SETTLEMENT HAD CALLED FOR THE REDWOOD CITY CALIF SOFTWARE COMPANY TO PAY 23 MILLION TO PLAINTIFFS AND LAWYERS IN A CLASSACTION SUIT AND AS MUCH AS 750000 IN FEES FOR LAWYERS WHO BROUGHT SOCALLED DERIVATIVE SUITS AGAINST THE DIRECTORS AND OFFICERS US DISTRICT JUDGE VAUGHN WALKER SAID HE COULDN'T APPROVE THE SETTLEMENT BECAUSE THE ORACLE DIRECTORS RESPONSIBLE FOR SETTLING THE CASE DIDN'T APPEAR TO HAVE SOUGHT ADVICE FROM AN INDEPENDENT OUTSIDE LAWYER INSTEAD THEY WERE ADVISED BY ORACLE'S GENERAL COUNSEL RAYMOND OCAMPO IT SEEMS INDUBITABLE THAT THE GENERAL COUNSEL WOULD BE RELUCTANT TO RECOMMEND THAT THE CORPORATION TAKE ANY POSITION ADVERSE TO THESE MEN INDIVIDUAL DEFENDANTS FOR WHOM HE WORKS ON A DAYTODAY BASIS AND WHO CONTROL HIS FUTURE WITH THE CORPORATION JUDGE WALKER WROTE IN HIS OPINION THE SETTLEMENT COMMITTEE'S RELIANCE ON THE INHERENTLY BIASED ADVICE OF INHOUSE COUNSEL MAKES THEIR APPROVAL OF THE SETTLEMENT WORTHLESS FOR PURPOSES OF ANALYZING WHETHER THE SETTLEMENT REASONABLY PROTECTS THE INTERESTS OF THE CORPORATION AND ITS SHAREHOLDERS THE JUDGE SAID STEPHEN GILLERS A LAW PROFESSOR AT NEW YORK UNIVERSITY SAID JUDGE WALKER'S OPINION WAS IMAGINATIVE BUT UNREALISTIC IN PRACTICE HE SAID IT IS IMPOSSIBLE TO GET AROUND THE PROBLEM OF A LAWYER'S POTENTIAL BIAS TOWARD THE INDIVIDUALS WHO HIRE HIM THE JUDGE IS PAPERING OVER THE PROBLEM MR GILLERS SAID MR OCAMPO WAS ON VACATION LAST WEEK AND COULDN'T BE REACHED TO COMMENT ON THE RULING BRENDA WOODSON AN ASSOCIATE GENERAL COUNSEL AT ORACLE DECLINED TO COMMENT BECAUSE THE CASE IS STILL PENDING IN RE ORACLE SECURITIES LITIGATION US DISTRICT COURT NORTHERN DISTRICT OF CALIF NO C900931VRW KATTEN MUCHIN & ZAVIS CHICAGO'S FIFTHLARGEST LAW FIRM IS STEPPING UP ITS PRO BONO WORK BY ASSIGNING A LAWYER TO WORK FULL TIME SUPERVISING AND DEVELOPING FREE LEGALSERVICE PROJECTS JONATHAN K BAUM FORMERLY AN ASSOCIATE AT CHICAGO LAW FIRM SIDLEY & AUSTIN WILL JOIN KATTEN MUCHIN IN THE NEW POSITION NEXT MONTH HE IS A MEMBER OF THE BOARD OF THE AMERICAN CIVIL LIBERTIES UNION'S ILLINOIS DIVISION KATTEN MUCHIN'S 383 LAWYERS ALREADY ARE ASKED TO DONATE 30 HOURS OF LEGAL SERVICE A YEAR TO PEOPLE WHO CAN'T AFFORD LAWYERS SAID MR BAUM BUT IN PRACTICE THEY GIVE FAR LESS THAN THAT MR BAUM SAID PART OF HIS JOB WILL BE TO CONVINCE LAWYERS THAT THE FIRM IS COMMITTED TO AUTOMATICALLY CREDITING THEM FOR AS MANY AS 100 HOURS OF PRO BONO WORK WHEN BILLABLE HOURS ARE TALLIED AS PART OF ANNUAL PERFORMANCE REVIEWS LAWYERS CAN BE CREDITED FOR MORE HOURS HE SAID ON A CASEBYCASE BASIS ASSOCIATES ARE NATURALLY SKEPTICAL OF STATED PRO BONO ASPIRATIONS IN PROFITMAKING ENTERPRISES SAID MR BAUM ONE OF THE REASONS FOR THE FIRM HIRING ME IN THIS POSITION IS THAT THE FIRM IS PUTTING ITS MONEY WHERE ITS MOUTH IS MR BAUM SAID THE FIRM'S PRO BONO EFFORTS WILL FOCUS ON AMONG OTHER THINGS JUVENILE JUSTICE DOMESTIC VIOLENCE POLITICAL ASYLUM COMMUNITY ECONOMIC DEVELOPMENT ESTATE WORK FOR PEOPLE WITH ACQUIRED IMMUNE DEFICIENCY SYNDROME AND CRIMINAL APPEALS KATTEN MUCHIN ALREADY HAS BEEN INVOLVED IN SEVERAL HIGHPROFILE PRO BONO CASES IN DECEMBER IT SECURED THE RELEASE OF LAWRENCIA BEMBENEK THE FORMER MILWAUKEE POLICEWOMAN SENTENCED IN 1982 TO LIFE IN PRISON FOR THE MURDER OF HER HUSBAND'S EXWIFE THE CONVICTION WAS VACATED BASED ON NEW EVIDENCE UNCOVERED WHILE SHE WAS IN PRISON 9308300081 930830 REVIEW & OUTLOOK EDITORIAL JAPAN APOLOGIZES FORTYEIGHT YEARS LATER JAPAN HAS NOW BECOME ONE OF THE PRIME BENEFICIARIES OF WORLD PROSPERITY AND PEACE I BELIEVE THAT IT IS IMPORTANT AT THIS JUNCTURE THAT WE STATE CLEARLY BEFORE ALL THE WORLD OUR REMORSE AT OUR PAST HISTORY AND OUR RENEWED DETERMINATION TO DO BETTER I WOULD THUS LIKE TO TAKE THIS OPPORTUNITY TO EXPRESS ANEW OUR PROFOUND REMORSE AND APOLOGIES FOR THE FACT THAT PAST JAPANESE ACTIONS INCLUDING AGGRESSION AND COLONIAL RULE CAUSED UNBEARABLE SUFFERING AND SORROW FOR SO MANY PEOPLE AND TO STATE THAT WE WILL DEMONSTRATE OUR NEW DETERMINATION BY CONTRIBUTING MORE THAN EVER BEFORE TO WORLD PEACE JAPAN'S NEW PRIME MINISTER UTTERED THESE SOBER WORDS IN A POLICY STATEMENT RECENTLY BEFORE THE NATIONAL DIET THE SPEECH AND ESPECIALLY THESE WORDS RECALLNG WORLD WAR II ARE WORTH NOTING BECAUSE IT WAS AN ADDRESS OF UNUSUAL THOUGHTFULNESS IT TOUCHED NOT ONLY ON JAPAN'S ROLE IN THE WORLD BUT ITS OBLIGATION TO EXTEND THE FRUITS OF ITS SUCCESS MORE WIDELY TO ORDINARY PEOPLE TO MAKE ITS POLITICAL SYSTEM CREDIBLE AGAIN AND TO ENSURE THAT JAPAN IS A COUNTRY OF QUALITY AND SUBSTANCE WHAT IS PERHAPS MOST STRIKING ABOUT PRIME MINISTER HOSOKAWA'S WORDS IS THEIR TONE OF SIMPLE AND STRAIGHTFORWARD SERIOUSNESS A QUALITY SOMEHOW LACKING ON THE WORLD'S STAGES RECENTLY HIS APOLOGY FOR WORLD WAR II THOUGH DESERVES SPECIAL COMMENT BECAUSE THE MEMORIES OF THOSE YEARS BEAR SO DIRECTLY IN SO MANY PLACES ON JAPAN'S INTERNATIONAL PRESENCE THE FACT IS THAT SINCE THAT TIME TWO GENERATIONS OF JAPANESE HAVE BEEN TAUGHT TO CONSIDER THEIR COUNTRY A VICTIM NOT AN AGGRESSOR OF THAT DEVASTATING WAR TO THOSE WHO WERE VICTIMS OF JAPAN'S IMPERIAL AMBITIONS THE ROLL CALL INCLUDES TAIWAN KOREA CHINA HONG KONG MALAYSIA SINGAPORE THE PHILIPPINES INDONESIA BURMA INDOCHINA AND NEW GUINEA JAPAN'S UNWILLINGNESS TO ACKNOWLEDGE ITS HISTORY HAS LONG BEEN A SOURCE OF ANGER MR HOSOKAWA'S WORDS WILL GO SOME DISTANCE TOWARD ASSUAGING THESE EMOTIONS IT IS CLEARLY AN EFFORT BY THIS NEW PRIME MINISTER OF A NEW GOVERNMENT TO START ANEW THAT WON'T HAPPEN THOUGH IF THE EFFORT ENDS THERE JAPAN'S DIFFICULTIES IN WRITING A DECENT HISTORY TEXTBOOK THAT TREATS ITS WAR RECORD AS SOMETHING SERIOUS ARE WELL KNOWN A MORE RECENT ISSUE WAS THAT OF THE COMFORT WOMEN LED INTO PROSTITUTION TO SERVE JAPANESE SOLDIERS JAPAN COVERED UP THE FACT FOR 47 YEARS AND ONLY RELUCTANTLY ACKNOWLEDGED IT THIS KIND OF THING MR HOSOKAWA SEEMS TO BE SAYING IS OVER THAT IS GOOD BUT WE SUSPECT ASIAN NATIONS WILL FIND THE PROMISE MORE CREDIBLE WHEN JAPAN AS A WHOLE IS LESS GRUDGING ABOUT ITS PAST THERE IS A LONG WAY TO GO IN THIS REGARD FOR EXAMPLE THERE IS STILL NO POLITICAL COST TO BE PAID WHEN A DIETMAN SAYS AS ONE DID RECENTLY THAT JAPAN'S GOAL IN WORLD WAR II WAS TO PROMOTE INDEPENDENCE AMONG ASIAN NATIONS ASIANS REMEMBER THE WAR DIFFERENTLY MR HOSOKAWA BORN DURING THE WAR AT LEAST SHOWED THAT HE WAS AWARE OF THESE DIFFERENCES IN A WAY HIS PREDECESSORS COULD NOT BEAR SOME MAY ASK WHY DOES ANY OF THIS MATTER THE WAR ENDED YEARS AGO SURELY IT'S TIME TO LET IT GO AND MOVE ON IT MATTERS FIRST BECAUSE HUMAN DECENCY REQUIRES THAT THOSE WHO COMMIT ORGANIZED WRONG ON THIS SCALE ACKNOWLEDGE IT AND IT MATTERS SIMPLY BECAUSE IT IS IMPORTANT TO THE MANY ASIAN COUNTRIES THAT JAPAN ONCE INVADED AND WITH WHOM IT STILL SHARES AN OCEAN WORLD WAR II REMAINS A PROMINENT AND DISTORTING FACTOR IN JAPAN'S RELATIONS WITH ASIA THE CHINESE COMMUNIST PARTY FOR EXAMPLE WHICH HAS MORE RECENT CRUELTIES THAN TOKYO TO APOLOGIZE FOR PLAYS WAR MEMORIES LIKE A VIOLIN EXTRACTING LOANS AND POLITICAL CONCESSIONS BY EXPLOITING JAPAN'S QUIET SENSE OF GUILT IT'S SURELY BETTER FOR JAPAN TO FACE ITS WAR RECORD HEAD ON JAPAN BECAME A DEMOCRACY IN THE POSTWAR ERA AND FREE PEOPLES ARE HELD TO HIGHER STANDARDS THAN DICTATORSHIPS WHOM NO ONE EXPECTS TO DEAL HONESTLY WITH PAST OR PRESENT SINS WITH THE ISOLATIONIST BUZZ IN THE US GROWING LOUDER JAPAN IS IN A POSITION TO EXPAND ITS INFLUENCE AS IT SURELY WANTS TO DO IT LOVES HOSTING SUMMITS IT VERY MUCH WANTS A SEAT ON THE UN SECURITY COUNCIL IT IS INCREASINGLY ASSERTIVE IN SUCH COUNCILS AS THE WORLD BANK AND THE RUSSIAN AID CONSORTIUM JAPAN DOESN'T WANT TO BE A DIPLOMATIC WALLFLOWER ANY MORE BUT IT ISN'T GOING TO BE TRULY SOUGHT AFTER UNTIL ITS WOULDBE PARTNERS KNOW IT CAN BE TRUSTED MR HOSOKAWA HAS MOVED IN THAT DIRECTION WITH MORE GRACE THAN HIS PREDECESSORS IT IS A PROMISING START WE HOPE THERE IS MORE 9308300080 930830 AMOCO CHEMICAL UNIT AGREES TO PURCHASE PHILLIPS FIBER CONCERN CHICAGO AMOCO CHEMICAL CO A UNIT OF AMOCO CORP SAID IT AGREED TO PURCHASE PHILLIPS PETROLEUM CO'S INDUSTRIAL FIBERS BUSINESS PHILLIPS FIBERS CORP THE COMPANIES DECLINED TO COMMENT ON TERMS BUT INDUSTRY SOURCES ESTIMATE THE PRICE AT 150 MILLION TO 200 MILLION THE TRANSACTION ALTHOUGH APPROVED BY THE COMPANIES' BOARDS REMAINS SUBJECT TO REGULATORY APPROVALS AMOCO SAID THE ACQUISITION WILL COMPLEMENT AND STRENGTHEN ITS MARKET POSITION IN THE CARPETBACKING MANUFACTURING BUSINESS THE PURCHASE IS PERCEIVED TO BE A GOOD MOVE SINCE CARPETBACKING FIBERS IS MORE STABLE IN ITS EARNINGS CONTRIBUTION THAN PURE COMMODITIES IN THE CHEMICALS BUSINESS SAID ROBIN SHOEMAKER A LEHMAN BROS ANALYST PHILLIPS FIBERS MAKES DURABLE NONWOVEN FABRICS MULTIFILAMENT YARN AND STAPLE FIBER AT PLANTS IN SPARTANBURG AND SENECA SC AND ROCKY MOUNT NC AMOCO CURRENTLY HAS FOUR FABRIC AND FIBERS MANUFACTURING FACILITIES IN SOUTHERN STATES AND SEVERAL PLANTS ABROAD PROCEEDS FROM THE SALE WOULD BE USED FOR PHILLIPS'S CORE PETROLEUM BUSINESS THE BARTLESVILLE OKLABASED COMPANY SAID THE SALE OF THE FIBERS BUSINESS IS PART OF AN ASSET DISPOSITION PROGRAM STARTED ALMOST TWO YEARS AGO IT SAID 9308300079 930830 HEARD ON THE STREET MET LIFE'S KOBRICK USING THE 1960S AS A GUIDE PREDICTS PROFIT SURGE WILL PUSH STOCKS HIGHER BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL FREDERICK KOBRICK IS A RAGING BULL ON US STOCKS SO WHAT IF OTHER MONEY MANAGERS ARE RUSHING TO BUY MORE STOCKS OVERSEAS RAISING CASH OR TAKING OTHER DEFENSIVE MEASURES MR KOBRICK WHO RUNS 1 BILLION FOR METROPOLITAN LIFE INSURANCE'S STATE STREET RESEARCH & MANAGEMENT THINKS THE BULL MARKET IN STOCKS HAS A LONG WAY TO GO FOR EVIDENCE HE POINTS TO THE 1960S ANOTHER TIME OF SEEMINGLY LOFTY STOCK PRICES AND LOW INTEREST RATES I DON'T THINK THE MARKET'S HIGH SAYS THE BOSTONBASED MR KOBRICK WHO SPECIALIZES IN PICKING STOCKS OF FASTGROWING COMPANIES WE'RE GOING INTO A PROFITSDRIVEN BULL MARKET NOW TODAY'S MARKET IS LIKE THE EARLY 60S IN A STOCK RALLY THAT BEGAN IN SEPTEMBER 1962 AND LASTED THROUGH JANUARY 1966 THE STANDARD & POOR'S 500 INDEX GAINED 835 AN ANNUALIZED 20 INCLUDING REINVESTED DIVIDENDS MR KOBRICK'S RECORD SUGGESTS THAT IF HE'S RIGHT HIS INVESTORS COULD MAKE A LOT OF MONEY OF COURSE IF HE'S WRONG THEY COULD LOSE A BUNDLE IN THE MUTUAL FUND REALM HIS METLIFESTATE STREET CAPITAL APPRECIATION FUND HAD A TOTAL RETURN OF 166 A YEAR FROM ITS 1986 INCEPTION THROUGH JULY INCLUDING PRICE CHANGES AND REINVESTED DIVIDENDS THAT BEAT THE 122 RETURN ON THE S&P 500 DURING THAT PERIOD SO FAR THIS YEAR THE FUND WITH 248 MILLION IN ASSETS IS UP 159 BUT ITS AGGRESSIVE STYLE GETS HIT HARD IN DOWN MARKETS IT LOST 137 IN 1990 MUCH MORE THAN THE S&P'S 31 LOSS THE A SHARES OF THE FUND CARRY A LOAD OR SALES CHARGE AS HIGH AS 45 MR KOBRICK DOESN'T WORRY ABOUT STOCKS ZIPPING ALONG AT NEARLY 24 TIMES TRAILING EARNINGS BECAUSE HE THINKS PROFITS ARE BEGINNING A PERIOD OF EXPLOSIVE GROWTH THAT'S WHERE THE 1960S TRACK RECORD LOOKS ENCOURAGING FROM THEIR 1962 TROUGH TO THEIR 1966 PEAK CORPORATE EARNINGS ROSE 101 FASTER THAN THE MARKET MR KOBRICK SAYS NOW EARNINGS ARE GROWING FASTER THAN STOCK PRICES AGAIN THIS YEAR PROFITS ARE GOING UP IN THE VICINITY OF 14 BUT THE STOCK MARKET SO FAR IS UP LESS THAN 6 WITHOUT DIVIDENDS HE SAYS MOREOVER INTEREST RATES WERE LOW IN 1962 WITH TREASURY BILLS PAYING 27 NOT FAR BELOW TODAY'S LEVEL THERE WAS A LACK OF COMPETITION FROM THE REAL' ECONOMY FOR THAT MONEY AND A LACK OF COMPETITION FROM OTHER FINANCIAL INSTRUMENTS MR KOBRICK SAYS SO THE MONEY FLOWED INTO STOCKS JUST AS IT HAS RECENTLY NOT EVERYBODY IS A BIG BULL VANGUARD GROUP CHAIRMAN JOHN C BOGLE ARGUES IN A FORTHCOMING BOOK BOGLE ON MUTUAL FUNDS THAT TODAY'S LOW DIVIDEND YIELDS AUGUR A LESSTHANSTELLAR DECADE AHEAD FOR STOCK MARKET RETURNS HISTORICALLY WHEN DIVIDEND YIELDS ON STOCKS HAVE FALLEN BELOW 35 THE ENSUING 10YEAR RETURN HAS EXCEEDED THE LONGTERM AVERAGE OF 10 ONLY 1/16TH OF THE TIME HE WRITES MR KOBRICK ISN'T DETERRED SAYING I DON'T THINK DIVIDENDS WERE REALLY A FACTOR TO TELL YOU THE TRUTH IN THE BULL MARKET BEGINNING IN 1962 ONE BULLISH SIGN TODAY HE ADDS IS THAT SO MANY PEOPLE ARE WORRIED ABOUT LOFTY STOCK LEVELS WE'RE DELEVERAGING AS AN ECONOMY PEOPLE ARE MORE BULLISH WHEN THEY'RE BORROWING THAN WHEN THEY'RE PAYING IT OFF TRUE MR KOBRICK EXPECTS MANY LARGE COMPANIES DEPENDENT ON OVERSEAS EARNINGS TO SUFFER ALONG WITH WEAK FOREIGN ECONOMIES BUT HE SAYS THE WINNERS WILL INCLUDE WELLFLEET COMMUNICATIONS A COMPUTER NETWORKING COMPANY NOW AT 49 3/4 THE NETWORKING INDUSTRY IS GROWING AT 65 A YEAR IN PART BECAUSE COMPUTER NETWORKS ALLOW COMPANIES TO IMPROVE PRODUCTIVITY WITHOUT HIRING AN IMPORTANT BENEFIT IN A SLOWGROWING ECONOMY SYBASE ANOTHER NASDAQ STOCK PICK NOW AT 59 1/2 MAKES DATABASE MANAGEMENT SOFTWARE ALL TOLD 25 OF MR KOBRICK'S PORTFOLIOS ARE IN TECHNOLOGY STOCKS WE'RE INVESTING IN COMPANIES THAT ARE PART OF THE SOLUTION TO WEAK GROWTH HE SAYS ABOUT HALF HIS PORTFOLIO IS IN COMPANIES WHOSE STOCKMARKET VALUES ARE BELOW 500 MILLION HE ALSO HAS A BIG BET ON FINANCIAL COMPANIES 18 OF HIS PORTFOLIO SHAWMUT NATIONAL HE SAYS STANDS TO MAKE MONEY FROM REAL ESTATE LENDING PARTICULARLY AS SUCH AREAS AS CONNECTICUT REBOUND FROM THEIR ECONOMIC SLUMP SHAWMUT IS CURRENTLY AT 22 7/8 ONE OF MR KOBRICK'S FEW FOREIGN STOCK PICKS IS VODAFONE GROUP A BRITISH CELLULAR PHONE FIRM WHOSE AMERICAN DEPOSITARY RECEIPTS TRADE AT 87 3/4 VODAFONE IS EXPANDING ACROSS EUROPE AND IS CHEAPER THAN OTHER CELLULAR COMPANIES HE SAYS THE BIGGEST HOLDINGS IN METLIFESTATE STREET CAPITAL APPRECIATION FUND ARE CHRYSLER ORACLE PROMUS EQUITABLE COS SHAWMUT NATIONAL FORD MOTOR MFS COMMUNICATIONS CHASE MANHATTAN SOUTHWESTERN PROPERTY TRUST AND HOSPITALITY FRANCHISE SYSTEM WHAT MIGHT STOP THIS EARNINGSDRIVEN US BULL MARKET THAT MR KOBRICK FORESEES ODDLY ENOUGH IT'S THE RAPID ECONOMIC GROWTH THAT EVERYONE LONGS TO SEE A HOT ECONOMY IS ANTITHETICAL TO A HOT STOCK MARKET HE SAYS BECAUSE IT SUCKS MONEY OUT OF STOCKS 9308300078 930830 REVIEW & OUTLOOK EDITORIAL ONE MORE TIME CALIFORNIA AND WASHINGTON STATE ARE GOING TO VOTE ON A SMALL SALESTAX BOOST THIS NOVEMBER AND THAT SURELY WILL ATTRACT NATIONWIDE ATTENTION BUT TO COMPLETE THE WEST COAST TAX SWEEP CONSIDER THAT THE MORE SUBSTANTIAL ACTION IS OCCURRING IN OREGON THE OREGON LEGISLATURE HAS PUT ON THE BALLOT A 5 LEVY THAT WOULD END THE STATE'S STATUS AS ONE OF FIVE NATIONALLY THAT DON'T TAX SALES A MILDER SUCH MOVE IN MONTANA WAS REJECTED BY VOTERS EARLIER THIS YEAR IN OREGON THE CIVIC ESTABLISHMENT IS TRYING TO MAKE UP GROUND LOST TO A PROPERTYTAX CUT ENACTED BY THE CITIZENS IN 1990 THE EDITOR OF WILLAMETTE WEEK CALLS THIS SIMPLY A 2 BILLION TAX HIKE WITH EXEMPTIONS FOR POWERFUL INTERESTS OREGON HAS BEEN AROUND THIS BEND BEFORE GOING BACK TO THE 1980 DEFEAT OF US REP AL ULLMAN CHAIRMAN OF THE WAYS AND MEANS COMMITTEE FOR HIS SUPPORT OF A NATIONAL SALES TAX THE STATE DOES HAVE ONE OF THE MORE UNBALANCED TAX REGIMES IN THE COUNTRY WHICH WAS THE BASIS FOR LIBERAL GOV BARBARA ROBERTS HOLDING A BUNCH OF TOWN MEETINGS TO GALVANIZE ACTION THE RESULT IS A RERUN OF A TAXCREATION IDEA THAT WAS REJECTED 4 TO 1 BY STATE VOTERS IN THE MID1980S IT'S NO WONDER PEOPLE ARE APPREHENSIVE ABOUT GOVERNMENT CUTTING IN FURTHER ON THEIR PURCHASES THE STATE AND LOCAL TAX INCREASES HAVE COME SO FAST AND FURIOUS THAT VOTERS AT ALL INCOME LEVELS HAVE COME TO ASSUME THAT EVERY SHOT IS AIMED AT THEM WHICH IN THE CASE OF THE SALES LEVY IT IS OREGON HAS A BIGGER PROBLEM THAN ITS TAX STRUCTURE AND THAT IS ITS TAX BURDEN WHICH IS HIGH FOR ITS REGION THE PROPERTYTAX VOTE OF 1990 WAS A WAY OF SCREAMING STOP LIKE MOST MAJOR TAX CUTS IT WILL PAY OFF INDEED OREGON IS SURVIVING A ROUT OF ITS TIMBER INDUSTRY WITH A HEALTHY TECHNOLOGY SECTOR INCLUDING COMPUTER SOFTWARE JEFF THREDGOLD WHO TRACKS REGIONAL ECONOMIES AS AN OFFICER OF THE BANKING FIRM KEY CORP SAYS THE VOTE SENT A MESSAGE TO BOTH CURRENT AND POTENTIAL EMPLOYERS THAT SOME SPENDING DISCIPLINE WAS TO BE EXPECTED FROM THE PUBLIC SECTOR IF HOWEVER THE TAX RAISERS GET BACK THE UPPER HAND ALL BETS WILL BE OFF BUT OUR SENSE IS THAT THIS WON'T HAPPEN THAT THE T WORD IS INDEED AN OBSCENITY TO THE AMERICAN ELECTORATE IN 1993 THE ESTABLISHMENT IN OREGON AND ELSEWHERE EVENTUALLY WILL HAVE TO ADJUST 9308300077 930830 REVIEW & OUTLOOK EDITORIAL ASIDES LAWYERS' GREEN MACHINE THE NATIONAL LAW JOURNAL'S SPECIAL SECTION ON ENVIRONMENTAL LAW LAST WEEK PROVIDES STRIKING EVIDENCE OF WHAT MOST BUSINESSPEOPLE NO DOUBT ALREADY KNOW ENVIRONMENTAL REGULATIONS ARE SO NUMEROUS AND SO COMPLEX THAT FULL COMPLIANCE IS JUST ABOUT IMPOSSIBLE MORE THAN TWOTHIRDS OF THE 200PLUS CORPORATE COUNSELS SURVEYED BY THE NATIONAL JOURNAL SAID THAT THEIR COMPANY HAD VIOLATED SOME FEDERAL OR STATE ENVIRONMENTAL LAW IN THE PAST YEAR TYPICAL WAS THE FRUSTRATION EXPRESSED BY ONE RESPONDENT TOO MANY REGULATIONS SOME ARE IN CONFLICT SOME ARE UNCLEAR BUT IF COMPANIES HAVE A HARD TIME FIGURING OUT AND FOLLOWING THE LAW IT'S NOT FOR WANT OF TRYING ACCORDING TO THE NATIONAL LAW JOURNAL'S SURVEY ENVIRONMENTAL LAW OCCUPIES ONEFIFTH OF THE TIME OF ATTORNEYS FOR THE NATION'S MAJOR BUSINESSES CORPORATIONS HAVE ALSO GONE ON A HIRING BINGE TWOTHIRDS OF THE COUNSELS SURVEYED HAVE HIRED OUTSIDE LAWYERS IN THE PAST YEAR TO HELP DECIPHER THE REGULATIONS IN OTHER WORDS WHILE THE VERDICT IS STILL OUT ON WHETHER THE MORASS OF ENVIRONMENTAL LAWS ACTUALLY IS GOOD FOR THE ENVIRONMENT ONE THING IS CLEAR IT'S GOOD FOR THE LAWYERS 9308300076 930830 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT CARBIDE/GRAPHITE GROUP 115 MILLION OF 10YEAR SENIOR NOTES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP CORNERSTONE IMAGING INC INITIAL 18 MILLION SHARES VIA ROBERTSON STEPHENS & CO FOREST OIL CORP 110 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES VIA DONALDSON LUFKIN HEALTHSOURCE INC TWO MILLION SHARES VIA GOLDMAN SACHS & CO NEUREX CORP INITIAL THREE MILLION CLASS A SHARES VIA LEHMAN BROTHERS INC AND KIDDER PEABODY & CO ROHR INC 125 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES VIA DILLON READ & CO VICTORIA FINANCIAL 12 MILLION SHARES VIA WILLIAM BLAIR & CO FLORIDA STATE BOARD OF EDUCATION 225 MILLION OF PUBLIC EDUCATION CAPITALOUTLAY GENERAL OBLIGATION BONDS VIA COMPETITIVE BID JACKSONVILLE FLA 181 MILLION OF ELECTRIC SYSTEM REFUNDING BONDS VIA A BEAR STEARNS & CO GROUP ORANGE COUNTY FLA 180 MILLION OF SERIES 1993A AND 1993B SALESTAX REVENUE REFUNDING BONDS AND REVENUE BONDS VIA A SMITH BARNEY SHEARSON GROUP MICHIGAN STATE HOSPITAL FINANCE AUTHORITY 110 MILLION OF SERIES 1993A REVENUE REFUNDING BONDS VIA A SMITH BARNEY SHEARSON GROUP 9308300074 930830 CREDIT MARKETS YIELDS' DROP TOWARD 6 BUOYS BONDS BULLS SEE BASIC SHIFT IN THE US ECONOMY OTHERS AREN'T SO SURE BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH YIELDS DOWN MORE THAN HALF A PERCENTAGE POINT IN TWO MONTHS NEARLY BUSTING THROUGH 6 THE BOND MARKET HAS ITS PLAYERS BACKED INTO A CORNER BUY MORE OR BAIL OUT GLOBAL BOND MANAGER KEN WINDHEIM PRESIDENT OF STRATEGIC FIXED INCOME LP IN ALEXANDRIA VA HAS HIS 14 BILLION BOND PORTFOLIO CRANKED UP TO A 45 STAKE IN US TREASURYS MOSTLY LONG TERM WITH ALL THE OPPORTUNITIES FOR FALLING YIELDS AROUND THE WORLD THAT'S AN EXTRAORDINARILY BULLISH VOTE ON THE US MARKET HE'S NOT SWITCHING STRATEGIES SOON THE ECONOMY IS STILL WEAK UNLIKE OTHER POSTWAR RECOVERIES THERE ARE ONGOING STRUCTURAL PROBLEMS TODAY MR WINDHEIM SAID REFERRING TO CHANGES IN THE ECONOMY'S BASIC WAY OF OPERATING FOR EXAMPLE ONE BIG SOURCE OF FEDERALLY FUNDED JOBS THE DEFENSE INDUSTRY STILL IS SHRINKING KEEPING WAGE AND LABOR MARKETS SLACK MR WINDHEIM SAID PRESIDENT CLINTON'S TAX PACKAGE AND PROPOSED HEALTHCARE PLAN ALSO ARE RIPPLING THROUGH THE ECONOMY MR WINDHEIM THINKS THESE POLICIES SAP BUSINESS CONFIDENCE THAT'S ONE REASON LOW INTEREST RATES AREN'T FUELING THE ECONOMY AS FAST AS BOND BEARS FEARED MR WINDHEIM SAID LOOK AT HOUSING STARTS PEOPLE ARE THRILLED TO SEE HOUSING STARTS AT A 12 MILLION ANNUALIZED RATE HE SAID BUT WITH MORTGAGE RATES THIS LOW THIS IS PRETTY SCARY IN THE EARLY 1980S WHEN WE WERE COMING OUT OF A RECESSION HOUSING STARTS SHOT UP TO A 17 TO 18 MILLION ANNUAL RATE EVEN THOUGH YIELDS HAVE FALLEN TO HISTORICAL LOWS MR WINDHEIM SAID THE 10YEAR NOTE AT 549 IS ABOUT FAIRLY PRICED BASED ON MEDIAN RETURNS OVER THE PAST 40 YEARS COULD THE MARKET GET WHACKED THERE IS NO DOUBT WE WILL HAVE A CORRECTION HE SAID BUT WAIT UNTIL THE TAX INCREASES KICK IN I DON'T SEE A HAPPY PICTURE FOR THE ECONOMY A STRUGGLING ECONOMY IS GOOD FOR FIXEDINCOME INVESTORS BECAUSE IT DAMPS THE THREAT OF INFLATION BY FRIDAY BOND YIELDS STOOD AT 614 DOWN FROM 667 JUNE 30 INA DREW SENIOR MANAGING DIRECTOR AT CHEMICAL BANKING CORP ALSO THINKS RATES WILL REMAIN IN A NARROW RANGE ALTHOUGH THE MARKET MIGHT TAKE A HIT EVERY NOW AND THEN THERE ARE ENOUGH WILD CARDS TO GYRATE THE MARKET SHE SAID ANY ONE OF THIS WEEK'S REPORTS ON HOME SALES TRADE CONSUMER CONFIDENCE AND EMPLOYMENT COULD BE THE JOKER THAT HALTS THE RALLY TEMPORARILY BUT MS DREW WHO OVERSEES ABOUT 50 BILLION IN US GOVERNMENT SECURITIES INVESTMENTS AT CHEMICAL THINKS INTEREST RATES HAVE DIPPED INTO AN ENTIRELY NEW STRUCTURE LOWER THAN AVERAGE YIELDS OF THE 1980S MY OWN VIEW IS THAT LONGTERM RATES WILL STAY AT LOW LEVELS AROUND ONEHALF OF A PERCENTAGE POINT HIGHER OR LOWER BUT BASICALLY IN CURRENT RANGES FOR THE IMMEDIATE FUTURE SHE SAID INFLATION AND ECONOMIC GROWTH ARE LOW AND THERE'S STILL AN ENORMOUS AMOUNT OF MONEY CHASING BONDS SHE SAID THERE IS MORE CASH THAN THERE IS SECURITIES SHE SAID THE RISK FOR BOND BULLS IS THAT YIELDS MAY BE AT THE VERY BOTTOM OF THEIR POSSIBLE NEW RANGE IF YOU COULD MAKE THE ARGUMENT THAT WE'RE SLIPPING BACK TO 1 TO 2 GROSS DOMESTIC PRODUCT GROWTH THEN WE COULD HAVE A CONTINUING RALLY SAID ADNAN AKANT MANAGING DIRECTOR AT FISCHER FRANCIS TREES & WATTS INC A NEW YORK INVESTMENT FIRM BUT MR AKANT WHO HELPS MANAGE ABOUT 20 BILLION IN BOND INVESTMENTS SAID THE ECONOMY IS BOUND TO PICK UP AT SOME POINT CONSUMER CONFIDENCE IS STEADY AND HOLDING UP HE THINKS THE BIG SURPRISES FOR THE MARKET POSITIVE OR NEGATIVE COULD COME FROM THE IMPACT OF PRESIDENT CLINTON'S HEALTHCARE AND TAX OVERHAULS WE'RE IN UNCHARTED TERRITORY IN TERMS OF WHAT CONSUMERS WILL DO HE SAID FOR EXAMPLE SOME ECONOMISTS THINK HIGHER TAXES CAN EASILY RESULT IN HIGHER INFLATION EMPLOYEES SEE THEIR AFTERTAX INCOME SHRINKING AND PUSH FOR HIGHER WAGES TO COMPENSATE MR AKANT IS SHIFTING FROM A BULLISH TO A NEUTRAL STAND ON THE MARKET HE DOESN'T EXPECT THE SPREAD BETWEEN LONGTERM AND SHORTTERM RATES TO SHRINK MUCH FURTHER WITH BONDS PRICES MOVING HIGHER THE MARKET HAS RALLIED SO FAR SO FAST THAT INVESTORS CAN PROBABLY AFFORD TO PULL SOME CHIPS OFF THE TABLE AND SEE WHAT HAPPENS NEXT JOSEPH DEANE MANAGING DIRECTOR AT SMITH BARNEY SHEARSON WHO OVERSEES ABOUT 35 BILLION IN MUNICIPAL BOND INVESTMENTS IS SHORTENING THE AVERAGE MATURITY OF HIS PORTFOLIOS RECENTLY HE PUT 250 MILLION IN CASH AND VOWS TO KEEP IT THERE UNTIL BOND PRICES CHEAPEN THE BOND MARKET HAS ALL THE LOOKS AND SMELLS OF PANIC BUYING HE SAID FAR FROM A NEW RATE REGIME THIS IS THE BOTTOM OF AN AGING BULL MARKET HE THINKS I THINK WE ARE HURTLING TOWARD THE CYCLICAL PEAK IN BOND PRICES MAYBE FOR THE REST OF THE CENTURY HE SAID HE PRESENTED BOND INVESTORS WITH TWO VIEWS THE US GOVERNMENT CURTAILS THE SALE OF LONGTERM BONDS RIGHT WHEN IT COULD SELL THEM AT HISTORICALLY CHEAP RATES MEANWHILE HE SAID THE CHIEF FINANCIAL OFFICERS AT WALT DISNEY CO AND COCACOLA CO DECIDE THAT IT IS A GOOD TIME TO LOCK IN INTEREST RATES FOR THE NEXT 100 YEARS EITHER THE US GOVERNMENT OR COKE AND DISNEY IS GOING TO LOOK INCREDIBLY RIGHT MR DEANE SAID WHERE DOES HE PUT HIS BET IF YOU ARE A BOND MANAGER AND NOT SHORTENING UP MATURITIES AND TAKING PROFITS AFTER A 12YEAR RALLY EITHER YOU ARE THE SMARTEST MAN IN THE WORLD OR A LUNATIC MR DEANE SAID THE POWERFUL RALLY IN THE US TREASURY SECURITIES TOOK A BREATHER FRIDAY AS INVESTORS DECIDED THE TIME WAS RIPE TO TAKE SOME PROFITS AND LET THE MARKET CONSOLIDATE THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND DROPPED 3/4 POINT OR 750 FOR A BOND WITH 1000 FACE VALUE TO 101 16/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE ROSE TO 614 FROM 608 ON THURSDAY THE PRICE OF THE 10YEAR NOTE DROPPED 5/8 POINT TO 101 29/32 TO YIELD 549 UP FROM 541 EVEN WITH THE MARKET'S LOSSES FRIDAY THE YIELD OF THE 30YEAR BOND STOOD 006 PERCENTAGE POINT BELOW WHERE IT FINISHED THE WEEK BEFORE AND THE YIELD ON THE 10YEAR NOTE WAS 012 PERCENTAGE POINT LOWER THE SELLING WAS WIDELY DESCRIBED AS PROFITTAKING IN THE WAKE OF THE WEEK'S SIZABLE GAINS AND WAS NOT VIEWED AS INDICATING ANY CHANGE IN SENTIMENT WE STARTED TO SEE SOME PROFITTAKING IN LONDON OVERNIGHT NOTED JOSEPH LIRO CHIEF ECONOMIST AT SG WARBURG & CO WE CAME DOWN A LITTLE BIT MORE IN THE MORNING FOUND SOME SUPPORT AND BUYING ON THE DIP CUT SOME OF THE LOSSES THERE WAS LITTLE FRESH NEWS TO INFLUENCE TRADING FRIDAY THE SOLE ECONOMIC RELEASE WAS THE UNIVERSITY OF MICHIGAN'S REPORT ON CONSUMER CONFIDENCE FOR AUGUST ACCORDING TO MARKET PARTICIPANTS WHO SAW THE REPORT CONSUMER CONFIDENCE EDGED UP DURING THE MONTH WITH THE UNIVERSITY'S INDEX IMPROVING TO 773 FROM 770 JULY THE REPORT IS AVAILABLE ONLY TO SUBSCRIBERS LOOKING AHEAD MARKET PARTICIPANTS SAID THE MARKET FACED FEW SERIOUS OBSTACLES ON THE HORIZON THE FIRST SERIOUS THREAT THAT MAY POSE A HAZARD IS THE EMPLOYMENT REPORT SAID WARBURG'S MR LIRO THE LABOR DEPARTMENT WILL RELEASE THE AUGUST EMPLOYMENT DATA FRIDAY BUT WITH EXPECTATIONS CENTERING ON A MODERATE INCREASE OF 150000 IN NONFARM PAYROLL EMPLOYMENT TRADERS VOICED CONFIDENCE THAT THE MARKET SHOULD BE ABLE TO WEATHER THE DATA WITHOUT MUCH CHANGE IN SENTIMENT AND OTHER ECONOMIC DATA IS EXPECTED TO BE FAVORABLE TOMORROW FOR EXAMPLE THE GOVERNMENT WILL REVISE ITS SECONDQUARTER GROSS DOMESTIC PRODUCT FIGURES AND MOST ECONOMISTS EXPECT A WHITTLING DOWN OF THE 16 RATE OF GROWTH SHOWN IN THE INITIAL REPORT IN ADDITION ANALYSTS THINK THE FEDERAL RESERVE WILL NEED TO PURCHASE ABOUT 4 BILLION WORTH OF SECURITIES FROM THE MARKET TOMORROW OR WEDNESDAY TO ADDRESS A SEASONAL SHORTAGE OF RESERVES IN THE BANKING SYSTEM SUCH A MOVE WOULD HAVE NO SIGNIFICANCE FOR MONETARY POLICY 9308300073 930830 MARKETING & MEDIA ADVERTISING BURGER KING DUSTS OFF JOHN SHAFT TO LURE MORE BLACK CONSUMERS BY KEVIN GOLDMAN WHO'S THE CAT THAT WON'T COP OUT WHEN THERE'S DANGER ALL ABOUT SHAFT RIGHT ON SO GO THE LYRICS FROM THE THEME SONG TO THE 1971 MOVIE ABOUT JOHN SHAFT A BLACK PRIVATE EYE ALTHOUGH HE HUNG UP HIS GUN TWO DECADES AGO AND HAS LONG SINCE RETIRED BURGER KING FEELS HE IS STILL A DRAW TO BLACK CUSTOMERS AND THE FASTFOOD CHAIN IS BUILDING AN ADVERTISING CAMPAIGN AROUND JOHN SHAFT AS THE TITLE SONG SAYS CAN YOU DIG IT OLD FOOTAGE FROM SHAFT WHICH STARRED RICHARD ROUNDTREE IS THE CENTERPIECE OF A SERIES OF THREE COMMERCIALS FROM THE BURGER KING AD AGENCY THAT PRODUCES WORK AIMED AT BLACK CONSUMERS UNIWORLD GROUP OF NEW YORK THE COMMERCIAL IS RAISING QUESTIONS IN THE ADVERTISING COMMUNITY ABOUT WHETHER THE TITLE CHARACTER OF A PERCEIVED BLACK EXPLOITATION FILM FROM SO LONG AGO IS THE BEST LINCHPIN FOR AN AD CAMPAIGN IT ALSO LEAVES SOME MARKETING EXPERTS WONDERING WHETHER THE TARGET CUSTOMER 12TO34YEAROLDS AND TEENAGERS IN PARTICULAR EVEN KNOWS OR CARES WHO JOHN SHAFT IS DOESN'T MEAN ANYTHING TO ME SAID KEN JOHNSON A 16YEAROLD FROM BROOKLYN NY WHO WAS HAVING BREAKFAST AT A BURGER KING ON BROADWAY AND 82ND STREET LAST WEEK OF FIVE TEENAGERS QUERIED AT THE EATERY THREE HAD NO IDEA WHO SHAFT WAS THE TARGET MARKET OF TEENS ISN'T ONLY UNFAMILIAR WITH THE FILM THEY AREN'T FAMILIAR WITH THE ACTOR EITHER SAYS LEWIS WILSON DIRECTOR OF CORPORATE MARKETING RESEARCH AT ESSENCE COMMUNICATIONS WHICH PUBLISHES ESSENCE MAGAZINE HE IS HEADING A RESEARCH STUDY IN PARTNERSHIP WITH SIMMONS MARKET RESEARCH BUREAU TITLED THE AFRICANAMERICAN NATIONAL SURVEY WHICH WILL QUESTION 10000 BLACK INDIVIDUALS ABOUT CONSUMER BEHAVIOR VALUES AND ATTITUDES THERE ARE MORE CONTEMPORARY HEROES SAYS TERRY MORFORD SENIOR VICE PRESIDENT AND DIRECTOR OF CLIENT SERVICES OF MARKETING AND A CONSULTING FIRM HE EVENS QUESTIONS WHETHER SHAFT IS A CHARACTER ANYONE SHOULD EMULATE SINCE THE MOVIE AND TELEVISION SERIES WERE PEPPERED WITH VIOLENCE BUT UNIWORLD CREATED THE SPOT TO EVOKE FOND REMEMBRANCES FROM MY AFRICANAMERICAN FRIENDS SAYS ANGELA WALKER CAMPBELL A COPYWRITER AT THE NEW YORKBASED AGENCY IT WASN'T THAT HARD I'M 30 AND I REMEMBER SHAFT MS CAMPBELL CONCEDES THERE IS SOME RISK OF YOUNGSTERS NOT KNOWING WHO HE IS BUT THEIR PARENTS WOULD KNOW SHE SAYS ANY CRITICISM IS UNFAIR ONE OF THE THINGS THAT SURPRISED ME IS THE GREAT GUT REACTION FROM PEOPLE WHO WORKED ON THIS CAMPAIGN AND PEOPLE I KNOW WHO'VE SEEN THE COMMERCIAL SHAFT HASN'T RECEIVED MASS EXPOSURE SINCE AUGUST 1974 WHEN A TELEVISION SERIES BASED ON THE MOVIE AND STARRING MR ROUNDTREE WAS CANCELED BY CBS AFTER 10 MONTHS THE COMMERCIAL IS A COMPANION OF SORTS TO ANOTHER BURGER KING SPOT STARRING MTV PERSONALITY DAN CORTESE FOR A CAMPAIGN TITLED BK TEEVEE THE CORTESE SPOT IS PUNCTUATED BY QUICK EDITS AND SASSY WRITING WE WERE LOOKING FOR WHAT WE COULD DO IN THE FRAMEWORK OF THAT CAMPAIGN WHILE USING SOMEONE WHO WOULD BE RELEVANT TO THE AFRICANAMERICAN COMMUNITY SAYS VALERIE GRAVES A CREATIVE VICE PRESIDENT AT UNIWORLD THE SPOT WHICH USES COMPUTER TECHNIQUES TO INSERT BURGER KING BAGS AND HAMBURGERS IN STRATEGIC PLACES BEGINS WITH MR ROUNDTREE'S WALKING CONFIDENTLY UP A BLOCK IN A FADED CLIP FROM THE 1971 MOVIE YO SHAFT THE OFFCAMERA ANNOUNCER SAYS IN ONE OF TWO REFERENCES TIPPING VIEWERS TO THIS FELLOW'S IDENTITY BURGER KING HAS BIG SANDWICH COMBOS AT JUST 299 THE COMMERCIAL THEN WEAVES BACK AND FORTH BETWEEN SHOTS OF BURGER KING PRODUCTS AND SHAFT FOOTAGE IN WHICH MR ROUNDTREE SEEMS TO BE RESPONDING TO WHAT THE ANNOUNCER IS SAYING EXAMPLE KNOW OF ANY BETTER DEAL MR ROUNDTREE/SHAFT REPLIES NOT AT THESE PRICES BABY IT ENDS WITH THE ANNOUNCER'S SAYING YOU'RE A SHREWD CAT SHAFT THE CHARACTER RESPONDS THANKS BROTHER IN THE MOVIE MR ROUNDTREE EVEN SAYS DO IT MY WAY WHICH COINCIDENTALLY IS THE OLD BURGER KING SLOGAN IN THE COMMERCIAL THAT LINE IS SPOKEN AFTER THE ANNOUNCER SAYS YOU DIG HOW COULD BURGER KING RESIST THE AD IS SHOWN ON BLACKAPPEAL TV SERIES INCLUDING HANGING WITH MR COOPER ROC AS WELL AS THE SYNDICATED TALK SHOW STARRING ARSENIO HALL IT HAS BROAD APPEAL SAYS SIDNEY J FELTENSTEIN AN EXECUTIVE VICE PRESIDENT AT BURGER KING A UNIT OF LONDONBASED GRAND METROPOLITAN PLC MY 18YEAROLD SON KNOWS WHO SHAFT IS WE WANTED THE STRATEGY TO BE A LITTLE EDGY BLACKS SPEND A TOTAL OF 34 BILLION FOR DINNER OUT OF THE HOME AND 35 BILLION FOR LUNCH ACCORDING TO A JUSTRELEASED STUDY BUYING POWER OF BLACK AMERICA FROM TARGET MARKET NEWS A CHICAGO NEWSLETTER ON BLACK CONSUMER MARKETING A MAJORITY OF THAT AMOUNT IS SPENT IN FASTFOOD ESTABLISHMENTS SAYS KEN SMIKLE THE NEWSLETTER'S PUBLISHER ALTHOUGH THE STUDY DOESN'T BREAK DOWN THE TOTAL FOR INDIVIDUAL CHAINS EXPLAINING THE USE OF SHAFT MR SMIKLE SAYS SHAFT IS A FAMILIAR CHARACTER TO ALL OF THE BLACK BABY BOOMERS BUT THE PROBLEM IS OFTEN NOSTALGIA DOESN'T NECESSARILY STRIKE THE SAME CHORD IN EVERYONE UNIWORLD SAYS IT IS PREPARING NEW BURGER KING SPOTS THAT USE FOOTAGE FROM MORE RECENT MOTION PICTURES PERHAPS DATING BACK FIVE TO SEVEN YEARS EXECUTIVES AT THE AD AGENCY DECLINE TO GIVE FURTHER DETAILS CITING COMPETITIVE REASONS THE ADS ARE SCHEDULED TO BREAK IN OCTOBER BBDO A DIVISION OF OMNICOM GROUP WON A CREATIVE COMPETITION TO SELL CHRYSLER CORP'S NEON SMALL CAR IN AN AD BLITZ THE AUTO MAKER SAYS WILL BE ITS LARGEST NEWPRODUCT LAUNCH EVER BOZELL INC WHICH HANDLES ADVERTISING FOR THE CHRYSLER AND PLYMOUTH BRANDS LOST A BID TO SELL NEONS TO GENERATION XERS BUT CHRYSLER WILL DIVIDE THE BILLINGS BETWEEN BOZELL AND BBDO WHICH ALSO HANDLES DODGE ADVERTISING FOR THE AUTO MAKER THE COMPETITION AROSE BECAUSE THE NEON WILL BE SOLD BY BOTH DODGE AND PLYMOUTH DEALERS CHRYSLER'S UNUSUAL APPROACH TO COMPETITION PROMOTES COOPERATION BETWEEN AGENCIES THE AUTO MAKER SAYS THE NEON CAMPAIGN WHICH WILL BE SIGNIFICANTLY LARGER THAN LAST YEAR'S LAUNCH OF THE DODGE INTREPID WILL BE CHRYSLER'S LARGEST LAUNCH EVER SAID JIM JULOW DIRECTOR OF MARKETING AT CHRYSLER CHRYSLER SPENT 28 MILLION IN ONE QUARTER TO LAUNCH THE INTREPID ACCORDING TO ESTIMATES PROVIDED BY LEADING NATIONAL ADVERTISERS WHICH TRACKS AD SPENDING BUT A LARGER ADVERTISING SPLASH IS NEEDED FOR THE NEON BECAUSE THE SMALLCAR MARKET IS THE LARGEST IN THE AUTOMOTIVE INDUSTRY AND THE MOST COMPETITIVE WITH MORE THAN 20 DIFFERENT CARS AVAILABLE EARLIER THIS YEAR BOZELL WON A SEPARATE COMPETITION TO HANDLE CREATIVE DEVELOPMENT FOR CHRYSLER'S MINIVANS BUT JUST AS WITH THE NEON BILLINGS FOR THE MINIVAN ACCOUNT ARE DIVIDED BETWEEN BOZELL AND BBDO THE NEON IS BEING CLOSELY WATCHED IN DETROIT WHERE IT IS SEEN AS A TEST OF US AUTO MAKERS' ABILITY TO COMPETE WHILE MOST SMALL CARS ARE MONEYLOSERS IN THE US CHRYSLER IS SAYING IT HAS BECOME SUCH AN EFFICIENT AUTO MAKER THAT IT WILL MAKE A PROFIT OFF THE NEON AND WILL BE ABLE TO EXPORT THE CAR CHRYSLER WILL SHOW THE CAR TO THE PUBLIC AT THE FRANKFURT AUTO SHOW ON SEPT 7 PETER KIM IS JOINING INTERPUBLIC GROUP'S MCCANNERICKSON WORLDWIDE AS VICE CHAIRMAN AND CHIEF STRATEGY OFFICER A NEWLY CREATED POSITION EFFECTIVE SEPT 15 MR KIM 34 YEARS OLD JOINS THE AD AGENCY FROM WPP GROUP'S J WALTER THOMPSON WHERE HE HAD BEEN EXECUTIVE VICE PRESIDENT US DIRECTOR OF STRATEGY PLANNING AND MEMBER OF THE WORLDWIDE BOARD MR KIM TAUGHT SOCIOLOGY AT NEW YORK UNIVERSITY BEFORE JOINING THOMPSON IN 1984 WHILE AT THOMPSON HE REORGANIZED THE RESEARCH GROUP IN NEW YORK INTO THE CONSUMER BEHAVIOR DEPARTMENT EVERY AD AGENCY HAS THE NEED FOR A STRONGER AND MORE FOCUSED STRATEGIC ADVERTISING JOHN J DOONER JR PRESIDENT AND CHIEF OPERATING OFFICER AT MCCANN SAID IN AN INTERVIEW CONSUMERS ARE SHOWING CONSIDERED PURCHASES AND AGENCIES HAVE TO CONTINUE TO HONE IMAGES PETER WILL HELP US DO THAT THE COCACOLA CO BOTTLER IN THAILAND PLACED A HALFPAGE AD IN ONE OF BANGKOK'S ENGLISHLANGUAGE NEWSPAPERS THAT REFERRED TO SINGER MICHAEL JACKSON'S CANCELING TWO CONCERTS THERE LAST WEEK MR JACKSON WHOSE DANGEROUS WORLD TOUR IS SPONSORED BY COKE RIVAL PEPSICO SAID HE DID SO BECAUSE HE WAS SUFFERING FROM DEHYDRATION THE CANCELLATION CAME AFTER THE LOS ANGELES POLICE SAID IT WAS INVESTIGATING MR JACKSON ON CHILD MOLESTATION CHARGES THE AD SAID DEHYDRATED THERE'S ALWAYS COKE MR JACKSON WHO PERFORMED FRIDAY IN THAILAND'S NATIONAL STADIUM HAS BEEN ASSOCIATED WITH PEPSI SINCE 1984 COKE SAID THAT THE AD WAS PLACED BY THE LOCAL BOTTLER AND THAT EXECUTIVES AT COKE'S ATLANTA HEADQUARTERS DON'T APPROVE LOCAL PRINT EXECUTIONS THE AD WAS SCHEDULED TO APPEAR ONLY ONCE GENERAL MILLS GENERAL MILLS WILL MASS MARKET ITS FIRST HISPANIC CEREAL BUNUELITOS IN A TELEVISION CAMPAIGN SCHEDULED TO BEGIN TODAY THE COMMERCIAL FROM AD AGENCY CMEKHBB MINNEAPOLIS WILL INITIALLY AIR IN SEVERAL CITIES IN TEXAS AND SOUTHERN CALIFORNIA AND MOVE TO CHICAGO IN OCTOBER 9308300072 930830 PEPPERAND SALT WHAT'SHISNAME SURE DID A GREAT JOB THERE'S ANY FUTURE IN IT 9308300071 930830 BUSINESS BRIEF INDUSTRIAL EQUITY LTD INITIAL PUBLIC OFFERING IS SET FOR ARTHUR YATES BUSINESSES INDUSTRIAL EQUITY LTD SAID IT WILL SELL ITS ARTHUR YATES & CO SEED AND FERTILIZER BUSINESSES THROUGH AN INITIAL PUBLIC OFFERING INDUSTRIAL EQUITY IS AN ADELAIDE AUSTRALIABASED INVESTMENT COMPANY EQUALLY OWNED BY ADELAIDE STEAMSHIP CO DAVID JONES LTD AND TOOTH & CO THE COMPANY SAID IT SIGNED AN UNDERWRITING AGREEMENT WITH STOCK BROKER POTTER WARBURG CAPITAL MARKETS LTD AS PART OF ITS DECISION TO SELL YATES THROUGH A SHARE ISSUE INDUSTRIAL EQUITY ANNOUNCED IN JUNE THAT IT PLANNED TO SELL YATES TO GREEN EQUITY INVESTORS LP OF THE US FOR AN ESTIMATED 70 MILLION AUSTRALIAN DOLLARS US468 MILLION BUT INDUSTRIAL EQUITY SAID PLANS FELL THROUGH OVER DISAGREEMENT ON FINAL TERMS THE COMPANY DIDN'T DISCLOSE HOW MUCH IT HOPES TO RAISE FROM THE OFFERING BUT A SPOKESMAN CONFIRMED A NEWSPAPER REPORT THAT SUGGESTED THE SHARE ISSUE WILL RAISE A50 MILLION 9308300070 930830 BUSINESS BRIEF TRITON ENERGY CORP AGREEMENTS REACHED TO SELL CERTAIN BUSINESSES IN FUELS TRITON ENERGY CORP SAID IT AGREED TO SELL ITS AVIATION FUELS BUSINESS TO AVFUEL CORP ANN ARBOR MICH FOR AN ESTIMATED 15 MILLION TRITON ALSO AGREED IN PRINCIPLE TO SELL ITS WHOLESALE FUEL BUSINESS IN COLORADO AND TEXAS FOR APPROXIMATELY 4 MILLION BUT WON'T IDENTIFY THE BUYER UNTIL THE TRANSACTION IS FINAL THE CLOSING OF BOTH SALES ARE SUBJECT TO VARIOUS CONDITIONS THE AVIATION FUEL AND COLORADO AND TEXAS WHOLESALE FUEL BUSINESSES TOGETHER ACCOUNT FOR A MAJORITY OF THE ASSETS AND REVENUE OF TRITON'S WHOLESALE FUEL PRODUCTS BUSINESS TRITON IS BASED IN DALLAS THE TRANSACTIONS ARE PART OF TRITON'S PREVIOUSLY ANNOUNCED STRATEGY TO DIVEST ITSELF OF BUSINESSES NOT ASSOCIATED WITH ITS CORE INTERNATIONAL EXPLORATION AND PRODUCTION BUSINESSES THE COMPANY CONTINUES TO NEGOTIATE THE DISPOSITION OF OTHER NONSTRATEGIC NONOIL AND GAS BUSINESSES PROCEEDS FROM THE SALE WILL BE USED TO REDUCE DEBT AND OTHER OBLIGATIONS TRITON ENERGY IS AN INDEPENDENT OIL AND GAS EXPLORATION AND PRODUCTION COMPANY WITH OIL AND GAS INTERESTS IN 12 COUNTRIES 9308300069 930830 CHINA'S STANCE TOWARD ACTIVIST MAY BE EASING UPROAR OVER EXPULSION APPEARS TO OPEN DOOR FOR DISSIDENT'S RETURN BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG CHINA APPEARS TO HAVE SOFTENED ITS STANCE TOWARD LABOR ACTIVIST HAN DONGFANG SINCE HIS EXPULSION FROM THE COUNTRY TWO WEEKS AGO SPARKED AN INTERNATIONAL UPROAR THE OFFICIAL XINHUA NEWS AGENCY SUGGESTED IN A REPORT FRIDAY THAT MR HAN MIGHT BE ALLOWED TO RETURN HOME IF HE REPENTS FOR ALLEGED ANTIGOVERNMENT ACTIVITIES THE GESTURE APPARENTLY IS AIMED AT CONTAINING THE FALLOUT FROM THE CASE WHICH HAS AGGRAVATED ALREADY STRAINED RELATIONS WITH THE US CAST A SHADOW OVER CHINA'S BID TO HOST THE 2000 SUMMER OLYMPICS AND FURTHER ERODED HONG KONG RESIDENTS' CONFIDENCE IN THEIR FUTURE RULER ONE HAS TO ACKNOWLEDGE THAT THIS IS A CLEAR SIGNAL THAT CHINA WANTS TO RESOLVE THE CASE IN SOME WAY SAYS ROBIN MUNRO THE HONG KONGBASED REPRESENTATIVE OF THE HUMANRIGHTS GROUP ASIA WATCH BUT HE NOTES THAT THE REPORT ALSO ALLEGES THAT MR HAN HAS VIOLATED CHINA'S NATIONAL SECURITY LAW A VERY SERIOUS CHARGE ALTHOUGH MR HAN DENIES THE ALLEGATION THE THREAT OF PROSECUTION COULD MAKE IT DIFFICULT FOR HIM TO RETURN MR HAN WHO IS STAYING IN HONG KONG SAID IN A STATEMENT THAT THE REPORT IS A SIGN OF HOPE HE ADDED IT NOW SEEMS THAT RETURNING HOME IS NEGOTIABLE MR HAN'S EJECTION WHICH CAME 24 HOURS AFTER HE RETURNED TO CHINA FROM THE US WHERE HE HAD BEEN RECEIVING MEDICAL TREATMENT WASN'T THE FIRST TIME THAT CHINA HAS SOUGHT TO BAR THE REENTRY OF DISSIDENTS EARLY THIS YEAR JOURNALIST DAI QING FACED PROBLEMS BEFORE BEING ALLOWED TO RETURN TO CHINA WHILE USBASED DISSIDENT GONG XIAOXIA WAS DENIED ENTRY IN MR HAN'S CASE BEIJING MIGHT HAVE SEEN ITS AUG 14 EXPULSION OF THE CHARISMATIC 30YEAROLD UNION LEADER AND REVOCATION OF HIS PASSPORT AS A ROUTINE INTERNAL AFFAIR OR PERHAPS EVEN AS A SOFTER ALTERNATIVE TO POSSIBLE ARREST AND JAIL BUT VIEWED FROM THE OUTSIDE THE TIMING COULDN'T HAVE SEEMED WORSE TENSIONS WERE RUNNING HIGH BETWEEN BEIJING AND WASHINGTON BECAUSE OF CHINA'S ALLEGED MISSILE SALES TO PAKISTAN OTHER DISPUTES OVER ALLEGED CHINESE ARMS EXPORTS AND THE COUNTRY'S GROWING TRADE SURPLUS WITH THE US THE EXPULSION RAISED THE TEMPERATURE JUST AS US CONGRESSIONAL DELEGATIONS WERE VISITING CHINA RESULTING IN CALLS TO REVOKE CHINA'S MOSTFAVOREDNATION TRADE STATUS NEXT YEAR THE EXPULSION ALSO CAME ONE MONTH BEFORE THE INTERNATIONAL OLYMPICS COMMITTEE IS SCHEDULED TO CHOOSE A VENUE FOR THE 2000 OLYMPICS WHICH BEIJING WANTS TO HOST CHINA'S TREATMENT OF MR HAN EVEN STIRRED CRITICISM IN HONG KONG'S PROCHINA CAMP IN A RARE DISPLAY OF UNITY HONG KONG REPRESENTATIVES OF OFFICIAL CHINESE BODIES JOINED LIBERAL HONG KONG LEGISLATORS AND THE BRITISH COLONIAL GOVERNMENT TO URGE BEIJING TO ACT ACCORDING TO LAW MANY FEAR THAT THE CASE WHICH VIOLATES THE INTERNATIONALLY ACCEPTED PRINCIPLE OF A NATIONAL'S RIGHT TO RETURN TO HIS COUNTRY COULD SET A DANGEROUS PRECEDENT AND RESTRICT HONG KONG RESIDENTS' FREEDOM OF TRAVEL AFTER THE COLONY REVERTS TO CHINESE RULE IN 1997 I DON'T APPROVE OF MR HAN'S WORK BUT I HOPE BEIJING WILL DEAL WITH THIS BASED ON THE LAW SAYS XU SIMIN A HONG KONGBASED REPRESENTATIVE OF THE CHINESE PEOPLE'S POLITICAL CONSULTATIVE CONFERENCE AN OFFICIAL BODY THAT ADVISES THE BEIJING GOVERNMENT IT CAN'T JUST TAKE AWAY HIS PASSPORT AND CITIZENSHIP ALTHOUGH THE TIMING MAY BE PUZZLING THERE ARE SEVERAL POSSIBLE EXPLANATIONS FOR CHINA'S DECISION TO EXPEL MR HAN SOME ANALYSTS HAVE NOTED THAT IT APPEARS TO BE PART OF A WIDER CRACKDOWN ON DISSENT ACCOMPANYING THE DRIVE TO COOL THE COUNTRY'S OVERHEATED ECONOMY MR HAN'S ROLE AS A LABOR ACTIVIST MAKES HIS CASE ESPECIALLY SENSITIVE AS DOUBLEDIGIT INFLATION AND OFFICIAL CORRUPTION STIR DISCONTENT AMONG CHINA'S WORKERS THE FORMER RAILWAY WORKER WAS JAILED FOR TWO YEARS FOR ORGANIZING LABOR SUPPORT FOR THE 1989 DEMOCRACY MOVEMENT ANOTHER VIEW IS THAT LOCAL POLICE AUTHORITIES ACTED INDEPENDENTLY BUT BEIJING WAS FORCED TO SUPPORT THEIR DECISION WHEN THE ISSUE BECAME INTERNATIONAL BUT IT'S CLEAR THAT CHINA UNDERESTIMATED THE INTENSITY OF THE RESPONSE THAT MR HAN'S EXPULSION WOULD TRIGGER 9308300068 930830 BUSINESS BRIEF HARKEN ENERGY CORP FIRM'S BAHRAIN UNIT ALLOWS EXPLORATION RIGHTS TO EXPIRE HARKEN ENERGY CORP DALLAS SAID ITS HARKEN BAHRAIN OIL CO SUBSIDIARY ALLOWED EXPLORATION AND DRILLING RIGHTS WITH THE BAHRAIN NATIONAL OIL CO TO EXPIRE THE ACREAGE BEING RELEASED IS LOCATED OFFSHORE PRIMARILY TO THE NORTH AND EAST OF THE MAIN BAHRAIN ISLAND THE HARKEN UNIT CONTINUES TO HOLD EXPLORATION AND DRILLING RIGHTS FOR TWO MORE YEARS ON A SECOND BLOCK OF ABOUT 480000 ACRES THE COMPANY HAS PREVIOUSLY DRILLED TWO WELLS ON THIS BLOCK WHICH DIDN'T YIELD ANY OIL OR GAS DISCOVERIES THE UNIT PLANS TO REPROCESS SEISMIC DATA TO SEE IF DRILLING A THIRD WELL IS FEASIBLE HARKEN IS CONTINUING TO HOLD DISCUSSIONS WITH VARIOUS PARTIES WHO HAVE EXPRESSED AN INTEREST IN JOINING WITH ITS BAHRAIN UNIT IN DRILLING ON THE SECOND BLOCK HARKEN ENERGY EXPLORES FOR DEVELOPS AND PRODUCES OIL AND GAS RESERVES DOMESTICALLY AND INTERNATIONALLY AND PROVIDES OILFIELD SERVICES 9308300067 930830 WHO'S NEWS UNIX EXECUTIVE RESIGNS TWO MONTHS AFTER ACQUISITION OF FIRM BY NOVELL BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL A WELLRESPECTED COMPUTER EXECUTIVE IS THE HIGHESTPROFILE CASUALTY OF THE RECENT MERGER OF SOFTWARE MAKER NOVELL INC AND UNIX SYSTEM LABORATORIES NOVELL SAID ROEL PIEPER FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ITS RECENTLY ACQUIRED UNIX SYSTEMS LABORATORIES HAS RESIGNED FROM NOVELL TO PURSUE OTHER INTERESTS MR PIEPER 36 YEARS OLD LEAVES NOVELL BASED IN PROVO UTAH ONLY TWO MONTHS AFTER THE DEAL WAS COMPLETED FOR NOVELL TO ACQUIRE UNIX FROM AMERICAN TELEPHONE & TELEGRAPH CO IN A STOCK SWAP VALUED AT 320 MILLION INDUSTRY ANALYSTS HAVE A HIGH REGARD FOR MR PIEPER STEWARDSHIP AT UNIX WHERE HE WAS A STRONG PROPONENT OF GETTING RIVAL COMPUTER COMPANIES EACH WITH ITS OWN VERSION OF THE UNIX OPERATING SYSTEM TO AGREE ON A STANDARD UNIX THAT WOULD BE MORE ATTRACTIVE TO CUSTOMERS MR PIEPER HAD NO OFFICIAL TITLE AT NOVELL BUT WAS PART OF AN EXECUTIVE TEAM OVER THE NEW UNIX SYSTEMS GROUP THAT IS TAKING OVER THE UNIX OPERATIONS THOUGH THE COMPANY SAID MR PIEPER INDICATED ONLY THAT HE WAS RESIGNING EFFECTIVE AUG 31 TO PURSUE PERSONAL AND BUSINESS INTERESTS SOME ANALYSTS SUGGESTED HE MIGHT HAVE FOUND IT DIFFICULT REPORTING TO SOMEONE ELSE AFTER HAVING BEEN TOP EXECUTIVE HE REPORTED TO KANWAL S REKHI NOVELL EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF UNIX SYSTEMS GROUP IF YOU'RE HIM YOU PROBABLY SAY HEY RATHER THAN BE RUNNING A SMALL PIECE OF A COMPANY I WANT TO DO WHAT I WANT TO DO' SAID RICHARD KIMBALL MANAGING DIRECTOR AT MONTGOMERY SECURITIES IN SAN FRANCISCO MR KIMBALL ALSO SUGGESTED THAT PERHAPS IT WAS DIFFICULT FOR MR PIEPER AS AN OUTSIDER TO ADAPT TO NOVELL'S CLOSEKNIT MANAGEMENT CULTURE MR PIEPER WAS UNAVAILABLE FOR COMMENT THE UNIX ACQUISITION HAD RAISED SPECULATION AMONG SOME ANALYSTS THAT MR PIEPER COULD BECOME ONE OF SEVERAL CONTENDERS FOR THE JOB OF RAYMOND NOORDA NOVELL'S 69YEAROLD CHIEF EXECUTIVE OFFICER WHO HAS INDICATED HE WOULD SETTLE THE ISSUE OF HIS SUCCESSOR THIS YEAR ANALYSTS ALSO POINT OUT THAT MR PIEPER WAS EXCLUDED WHEN A NEW OFFICE OF THE PRESIDENT WAS SET UP LAST WEEK THAT INCLUDED MR NOORDA CHIEF ACCOUNTING OFFICER MARY M BURNSIDE AND CHIEF FINANCIAL OFFICER JAMES R TOLONEN THOUGH THIS MOVE HAS RAISED THE POSSIBILITY THAT EITHER MS BURNSIDE OR MR TOLONEN COULD BE SUCCESSORS ANALYSTS SAID THEY STILL BELIEVE A SUCCESSOR WOULD BE CHOSEN FROM OUTSIDE THE COMPANY THE UNIX DEAL GAVE NOVELL A WEAPON IN ITS BATTLE AGAINST MICROSOFT CORP OF REDMOND WASH BY GIVING NOVELL CONTROL OF UNIX A COMPUTER OPERATING SYSTEM THAT IS WIDELY USED WITH HIGHPERFORMANCE DESKTOP COMPUTERS CALLED WORKSTATIONS MICROSOFT COMPETES WITH THE UNIX SYSTEM IN ITS NEW OPERATING SYSTEM CALLED WINDOWS NT NOVELL AND MICROSOFT ALSO COMPETE IN NETWORKING SOFTWARE WHERE NOVELL HOLDS A WIDE LEAD WITH ITS NETWARE LINE AND IN PERSONALCOMPUTER OPERATING SOFTWARE WHERE MICROSOFT DOMINATES WITH ITS COMBINATION OF DOS AND WINDOWS 9308300066 930830 CHRYSLER PRESSES UAW FOR COPAYMENTS ON HEALTH CARE AND LOWER STARTING PAY BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL CHRYSLER CORP WHICH RECENTLY REPORTED ONE OF ITS MOST PROFITABLE QUARTERS EVER ASKED FOR HEALTHCARE CONCESSIONS AND LOWER STARTING WAGES FOR NEW HIRES IN ITS FIRST ECONOMIC OFFER TO THE UNITED AUTO WORKERS UNION CHRYSLER WANTS ITS WORKERS WHO CURRENTLY RECEIVE FIRSTDOLLAR HOSPITAL COVERAGE FROM THE COMPANY TO BEGIN MAKING COPAYMENTS BUT CHRYSLER ALONG WITH FORD MOTOR CO AND GENERAL MOTORS CORP HAS MADE THIS SAME REQUEST IN PAST CONTRACT NEGOTIATIONS AND THE UNION HAS YET TO BUDGE THAT WORD COPAYMENT IS NOT IN OUR CURRENT CONTRACT AND WON'T BE IN FUTURE ONES DECLARED STAN MARSHALL THE UAW'S TOP CHRYSLER NEGOTIATOR AT A NEWS CONFERENCE FRIDAY IN GENERAL MR MARSHALL WAS HIGHLY CRITICAL OF CHRYSLER'S FIRST ECONOMIC OFFER AND SAID THE HIGHLAND PARK MICH COMPANY MIGHT NEED A STRIKE TO TAKE THE UNION SERIOUSLY IN ALL FAIRNESS TO MANAGEMENT I WORKED ON THE ASSEMBLY LINE AND IT'S DAMN NOISY WHEN THOSE LINES ARE RUNNING SAID MR MARSHALL SO MAYBE THEY CAN'T HEAR BUT I'M A FIRM BELIEVER WHEN THOSE LINES SHUT DOWN ALL AT ONCE IT GETS QUIET AND THEY CAN HEAR PRETTY GOOD BUT MR MARSHALL ALSO INDICATED THAT HE EXPECTS CHRYSLER TO CHANGE ITS TUNE BEFORE THE CURRENT CONTRACT EXPIRES SEPT 14 I'D BE A LOT MORE WORRIED ABOUT THIS PROPOSAL IF IT CAME SEPT 15 HE SAID THE UAW IS SCHEDULED TO ANNOUNCE ITS STRIKE TARGET TODAY ALTHOUGH MOST OBSERVERS BELIEVE THE UNION IS MORE LIKELY TO PICK FORD OR GM MR MARSHALL ARGUED FRIDAY THAT CHRYSLER WOULD MAKE A GOOD TARGET BECAUSE SO MANY OF ITS VEHICLES ARE SELLING WELL AND THUS THE COMPANY IS EXCEEDINGLY VULNERABLE TO WORK STOPPAGES CHRYSLER IS OFFERING A SINGLE PAY INCREASE IN THE FIRST YEAR OF A NEW THREEYEAR CONTRACT FOLLOWED BY LUMPSUM PAYMENTS IN THE LAST TWO YEARS THE SAME WAY THE CURRENT CONTRACT IS STRUCTURED NEITHER CHRYSLER NOR THE UNION SPECIFIED THE SIZE OF THE PAY BOOST OR THE LUMPSUM PAYMENTS CHRYSLER'S PROPOSAL FOR LOWER STARTING WAGES SOUNDS REMARKABLY SIMILAR TO ONE FORD MADE TWO DAYS EARLIER TO THE UNION FORD AND CHRYSLER BOTH EXPECT TO HIRE THOUSANDS OF WORKERS IN THE NEXT FEW YEARS TO REPLACE RETIRING EMPLOYEES AND THUS BOTH COMPANIES WOULD BENEFIT IN A BIG WAY FROM LOWER STARTING WAGES BY CONTRAST GM WHICH STILL MUST TRIM TENS OF THOUSANDS OF WORKERS TO BECOME COMPETITIVE WOULD GAIN MUCH LESS FROM LOWER STARTING WAGES WE DO HAVE HIGH LABOR COSTS TOM GALLAGHER CHRYSLER'S VICE PRESIDENT OF EMPLOYEE RELATIONS TOLD REPORTERS FRIDAY IN SOME OF OUR COMPONENT OPERATIONS IT'S DIFFICULT TO BE COMPETITIVE CURRENTLY UAW WORKERS START AT 85 OF THE BASIC WAGE RATE AND REACH THE TOP RATE OF 1750 AN HOUR IN JUST 18 MONTHS BUT FORD AND CHRYSLER ARE SEEKING A WAGE STRUCTURE SUCH AS EXISTS IN SOME OF THE AUTO PLANTS REPRESENTED BY THE INTERNATIONAL UNION OF ELECTRICAL WORKERS FOR EXAMPLE NEW WORKERS IN GM'S ELECTRICAL COMPONENT PLANT IN BROOKHAVEN MISS WHO ARE REPRESENTED BY THE IUE START AT JUST 55 OF FULL PAY AND TAKE 12 YEARS TO REACH PARITY CHRYSLER EARNED 685 MILLION OR 186 A SHARE IN THE SECOND QUARTER A SHARP INCREASE FROM YEAREARLIER NET OF 178 MILLION AND ITS BEST QUARTERLY PERFORMANCE SINCE 1984 CHRYSLER EARNED AN AVERAGE 808 PER VEHICLE IN THE SECOND QUARTER MAKING IT THE MOST PROFITABLE OF THE BIG THREE ON A PERVEHICLE BASIS 9308300065 930830 BUSINESS BRIEF GUINNESS PEAT GROUP PLC BRIERLEY INVESTMENTS SELLS 65 MILLION SHARES IN FIRM BRIERLEY INVESTMENTS LTD A NEW ZEALAND INVESTMENT AND HOTEL COMPANY SAID IT HAS SOLD 65 MILLION SHARES IN SIR RON BRIERLEY'S GUINNESS PEAT GROUP PLC FOR 625 AUSTRALIAN CENTS A SHARE 42 US CENTS WITH GPG NOW LISTED IN AUSTRALIA IT IS APPROPRIATE FOR BRIERLEY INVESTMENTS IN CONSULTATION WITH GPG TO PLACE HALF OF ITS SHAREHOLDING IN THAT COUNTRY BRIERLEY INVESTMENTS SAID THIS WILL PROVIDE FOR WIDER PARTICIPATION AND LIQUIDITY IN THE SHARES IN THAT MARKET BRIERLEY INVESTMENTS STILL RETAINS 637 MILLION SHARES OR 18 OF THE CAPITAL IT SAID 9308300064 930830 MITSUBISHI TRUCK PACT SPECIAL TO THE WALL STREET JOURNAL TOKYO MITSUBISHI MOTORS CORP A MAJOR JAPANESE AUTO MAKER STOPPED SUPPLYING PICKUP TRUCKS TO CHRYSLER CORP IN A MOVE REFLECTING THE YEN'S SHARP APPRECIATION A MITSUBISHI SPOKESMAN SAID THE MOVE WAS IN RESPONSE TO A REQUEST BY CHRYSLER WHICH DECIDED TO DROP THE RAM50 PICKUP MODEL INSTEAD OF INTRODUCING A RENEWED VERSION THIS FALL THE SPOKESMAN ADDED HE SAID THE US CONCERN DECIDED TO END ITS IMPORTS OF THE MITSUBISHI TRUCK BECAUSE OF THE YEN'S SHARP APPRECIATION SINCE EARLY THIS YEAR AND ALSO BECAUSE OF A SHARP DECLINE IN SALES OF THE MODEL IN RECENT YEARS THE RAM50 SOLD UNDER CHRYSLER'S BRAND NAME IN THE US SOLD 78000 UNITS IN 1986 BUT ONLY 1300 DURING THE FIRST SEVEN MONTHS OF THIS YEAR IT HAS BEEN LOSING PRICE COMPETITIVENESS BECAUSE OF A 25 DUTY IMPOSED ON IMPORTED TRUCS HE SAID IN EARLY JULY CHRYSLER SOLD ALL ITS HOLDINGS IN MITSUBISHI MOTORS TO END ITS CAPITAL PARTICIPATION IN THE JAPANESE COMPANY BUT THE TWO MAKERS AGREED TO CONTINUE COOPERATION IN MANUFACTURING IN THE US THE LATEST SUSPENSION OF PICKUP TRUCK SHIPMENTS DECIDED BEFORE JULY DOESN'T SIGNIFY ANY MAJOR REVIEW OF THE RELATIONSHIP BETWEEN THE TWO MAKERS THE SPOKESMAN SAID 9308300063 930830 BUSINESS BRIEF ABNAMRO HOLDING NV DUTCH GROUP POSTS 16 RISE IN NET INCOME FOR FIRST HALF ABNAMRO HOLDING NV SAID PROFIT FOR THE FIRST HALF OF THE YEAR ROSE 16 BUOYED BY STRONG LENDING AND FEEGENERATING BUSINESSES NET INCOME INCREASED TO 101 BILLION GUILDERS 5392 MILLION FROM 872 MILLION GUILDERS A YEAR EARLIER THAT GROWTH WAS AT THE UPPER END OF ANALYST EXPECTATIONS A DUTCH STOCK BROKER SAID THE LARGE DUTCH BANKING GROUP WAS ABLE TO POST SUBSTANTIAL INCREASES IN INCOME FROM AN ARRAY OF BUSINESS SOURCES WORLDWIDE AND WAS PARTICULARLY HELPED BY SURGING INCOME FROM ITS FOREIGNEXCHANGE AND STOCKMARKET ACTIVITIES BOTH FOR ITS OWN AND CUSTOMER ACCOUNTS COMMISSION INCOME ROSE 11 TO 173 BILLION GUILDERS FROM 156 BILLION GUILDERS THE STRONG FEEGENERATING AREA WAS THE SECURITIES BUSINESS WHICH BOOSTED INCOME 19 TO 707 MILLION GUILDERS BUT THE INSURANCE LINES REGISTERED A 12 DECLINE IN INCOME TO 135 MILLION GUILDERS THE GROUP ALSO BOOSTED ITS INTERIM DIVIDEND TO 145 GUILDERS A COMMON SHARE FROM 140 GUILDERS AND ANNOUNCED PLANS TO ISSUE 20 MILLION CONVERTIBLE PREFERENCE SHARES IN SEPTEMBER 9308300062 930830 CREDIT RATINGS NORTHERN TELECOM LTD MISSISSAUGA ONTARIO MOODY'S INVESTORS SERVICE INC SAID IT LOWERED ITS LONGTERM RATING ON SENIOR DEBT OF THIS MAKER OF TELECOMMUNICATIONS EQUIPMENT TO SINGLEA2 FROM DOUBLEA3 APPROXIMATELY 16 BILLION OF LONGTERM DEBT IS AFFECTED MOODY'S SAID IT EXPECTS NORTHERN TELECOM WILL HAVE DIFFICULTY IN QUICKLY RESTORING ITS PROFIT MARGINS AND CASH FLOWS TO FORMER LEVELS BECAUSE OF WEAK DEMAND AND SEVERE PRICING PRESSURES FOR CENTRAL OFFICE TELEPHONESWITCHING EQUIPMENT STANDARD & POOR'S CORP LOWERED ITS RATING ON THE COMPANY'S DEBT EARLIER THIS MONTH SEQUA CORP NEW YORK STANDARD & POOR'S CORP LOWERED ITS SENIOR DEBT RATING ON THIS AEROSPACE AND CHEMICAL CONCERN TO DOUBLEB FROM DOUBLEBPLUS AND REMOVED THE COMPANY FROM ITS WATCH LIST ABOUT 500 MILLION IN DEBT IS AFFECTED THE RATINGS AGENCY SAID THE DOWNGRADE REFLECTS SEQUA'S CONTINUED WEAKNESS IN ITS CORE COMMERCIAL AEROSPACE OPERATIONS AND LIMITED PROSPECTS FOR MATERIAL IMPROVEMENT IN EARNINGS FROM SUBPAR LEVELS SEQUA CONTINUES TO SUFFER IN THE FACE OF THE AEROSPACE RECESSION S&P SAID ONE OF ITS PRIMARY MARKETS RESTORATION AND REPAIR OF COMPONENTS FOR JET ENGINES CONTINUES TO STRUGGLE IN THE FACE OF LIGHT AIRCRAFT UTILIZATION RATES THE RATINGS AGENCY SAID SEQUA DECLINED TO COMMENT 9308300061 930830 BUSINESS BRIEF TSB GROUP PLC EURODOLLAR CARRENTAL UNIT IS PURCHASED BY MANAGEMENT BRITISH BANK TSB GROUP PLC SAID FRIDAY IT SOLD EURODOLLAR ITS SHORTTERM VEHICLE RENTAL BUSINESS IN A MANAGEMENT BUYOUT FOR 118 MILLION 1785 MILLION THE PRICE INCLUDES 22 MILLION CASH AND 379 MILLION OF INTERCOMPANY DEBT AN ADDITIONAL 581 MILLION OF INTERCOMPANY DEBT WILL BE REPAID TO TSB AT MARCH 31 EURODOLLAR'S NET ASSETS TOTALED 204 MILLION IT REPORTED A PRETAX LOSS FOR THE SIX MONTHS ENDED MARCH 31 OF 79 MILLION ITS PRETAX PROFIT FOR THE PREVIOUS FINANCIAL YEAR WAS 3 MILLION BUT IT HAD A 1 MILLION LOSS ON AN AFTERTAX BASIS IN JULY TSB SOLD SNL ITS LARGER VEHICLE LEASING BUSINESS FOR 182 MILLION TSB PREVIOUSLY SAID IT WAS SELLING ITS LEASING BUSINESSES TO FOCUS ON ITS CORE BANKING AND INSURANCE INTERESTS 9308300060 930830 INVERSE RELATION DESPITE RISING RISKS MANY INVESTORS KEEP BUYING BOND FUNDS PURCHASES ARE OUTSTRIPPING MONEYMARKET ACCOUNTS AS YIELDS DROP FURTHER THE DANGER OF HIGHER RATES BY THOMAS T VOGEL JR AND LAURA JERESKI STAFF REPORTERS OF THE WALL STREET JOURNAL WHAT GOES UP CAN GO DOWN WAS THE UNSETTLING MESSAGE IN AN INFLIGHT MOVIE RECENTLY SHOWN TO AMERICAN AIRLINES PASSENGERS IT WAS A WARNING NOT ABOUT AIRPLANES BUT ABOUT BONDS THE TWOMINUTE VIDEO WAS PRODUCED BY THE INVESTMENT COMPANY INSTITUTE THE MUTUALFUND INDUSTRY'S MAIN TRADE GROUP AS PART OF A CAMPAIGN TO WARN INVESTORS OF THE RISKS OF INVESTING IN BONDS THOSE RISKS ARE HUGE TODAY IN FACT BONDS MAY BE RISKIER THAN STOCKS AS DECLINING INTEREST RATES POWER HUGE RALLIES IN BOTH MARKETS MANY INVESTORS SEEM TO HAVE ALL BUT FORGOTTEN THE EIGHTMONTH BEAR MARKET IN BONDS THAT PRECEDED THE OCTOBER 1987 STOCKMARKET CRASH THEY ARE DELUGING BOND MUTUAL FUNDS WITH 10 BILLION OF NEW CASH A MONTH SOME OF IT WITHDRAWN FROM MUCHSAFER BUT LOWERYIELDING SHORTTERM INVESTMENTS SUCH AS BANK CERTIFICATES OF DEPOSIT AND MONEYMARKET FUNDS PEOPLE HAVE GOT THEIR BACKS AGAINST THE WALL BECAUSE OF TODAY'S LOW INTEREST RATES AND IT'S FORCING THEM TO TAKE MORE RISK SAYS DONALD WEBBER AN EXECUTIVE VICE PRESIDENT AT STATE STREET RESEARCH A METROPOLITAN LIFE INSURANCE CO UNIT MANAGING 39 BILLION OF MUTUALFUND ASSETS TYPICAL OF THE BONDMARKET NEWCOMERS ARE JAMES AND ELIZABETH MORRISON OF PALM COAST FLA IN THE PAST YEAR MR MORRISON A RETIRED UTILITY PLANT MANAGER HAS MORE THAN DOUBLED THE COUPLE'S BOND INVESTMENTS TO 150000 HE MOVED MOST OF THAT MONEY FROM CDS TO TAXEXEMPT FUNDS WE DON'T KNOW WHAT ELSE TO DO WITH IT HE SAYS EVEN THOUGH WE KNOW THE BOND MARKET IS NOT THE BEST THING TO PUT MONEY IN NOW IT SEEMS THE LEAST OF ALL EVILS SUCH SENTIMENTS HAVE HELPED BOND MUTUAL FUNDS GROW NEARLY 100 BILLION THIS YEAR TO A RECORD 673 BILLION FOR THE FIRST TIME THE AMOUNT OF MONEY IN BOND FUNDS HAS OUTSTRIPPED THAT IN MONEYMARKET FUNDS IN THE FIRST HALF OF THIS YEAR AN UNPRECEDENTED 207 NEW BOND FUNDS MORE THAN ONE A DAY HAVE BEEN LAUNCHED THAT IS THREE TIMES THE TOTAL IN THE YEAREARLIER PERIOD A LOT OF PEOPLE WHO ARE MAKING THEIR INVESTMENTS NOW HAVE NEVER SEEN WHAT COULD HAPPEN WITH THEIR FUNDS IN A BEAR MARKET SAYS ROBERT ARIEL A FINANCE PROFESSOR AT BARUCH COLLEGE IN NEW YORK MANY INVESTORS APPARENTLY VIEW THE BOND MARKET AS AN INVESTMENT UTOPIA WHERE PRICES CAN ONLY GO UP THAT'S BECAUSE BOND PRICES MOVE INVERSELY TO YIELDS WHICH HAVE BEEN ON A DECADELONG SLIDE THAT HAS PUSHED THE YIELD ON LONGTERM TREASURY BONDS DOWN FROM 152 IN THE EARLY 1980S TO FRIDAY'S 614 WHEN INTEREST RATES DROP THE FIXED INTEREST PAYMENT ON AN OUTSTANDING BOND DOESN'T CHANGE AND THE BOND BECOMES MORE VALUABLE CONVERSELY A RISE IN INTEREST RATES MAKES THAT FIXED PAYMENT LESS ATTRACTIVE AND THE BOND PRICE FALLS THUS THE BIGGEST RISK FACING BOND INVESTORS IS A REBOUND IN INTEREST RATES IF RATES RISE THE PERCENTAGE DROP IN THE VALUE OF BOND HOLDINGS WILL BE LARGER THAN MANY INVESTORS EXPECT THE REASON RATES ARE SO LOW NOW IF 30YEAR TREASURYBOND YIELDS ROSE JUST ONE PERCENTAGE POINT TO 7 AN INVESTOR WOULD LOSE 125 OF HIS PRINCIPAL IN TERMS OF CAPITAL LOST SUCH A RATE RISE WOULD BE ROUGHLY EQUIVALENT TO A 455POINT DROP IN THE DOW JONES INDUSTRIAL AVERAGE EVEN THE SHORT AND INTERMEDIATETERM BOND FUNDS WITH AN AVERAGE MATURITY OF FIVE YEARS A TYPE THAT INVESTORS HAVE FAVORED RECENTLY WOULD LOSE ALMOST 4 HOWEVER SOME ANALYSTS THINK IT IS A RISK WORTH TAKING AS LONG AS SHORTTERM INTEREST RATES REMAIN LOW WHICH SEEMS VERY LIKELY LONGTERM BOND YIELDS SHOULD CONTINUE TO GRADUALLY FALL PERHAPS BELOW 6 SAYS ROBERT GIORDANO DIRECTOR OF ECONOMIC RESEARCH AT GOLDMAN SACHS & CO BUT MR GIORDANO WHO PREDICTED THIS YEAR'S DROP IN RATES SAYS BOND INVESTORS AREN'T LIKELY TO GET THE SAME RETURNS IN THE NEXT YEAR AS IN THE PAST YEAR TO REAP THE SAME TOTAL RETURN PRICE CHANGE PLUS INCOME AS IN THE PAST YEAR LONGTERM YIELDS WOULD HAVE TO SLIDE BELOW 5 A LEVEL NOT SEEN SINCE THE 1960S THE GOOD TIMES HAVE SO SPOILED INVESTORS THAT MANY EXPECT UNREALISTICALLY HIGH RETURNS ON FIXEDINCOME HOLDINGS CHARLES AND MARY ANN SWISHER A RETIRED COUPLE IN JACKSONVILLE FLA ARE SEEKING TOTAL ANNUAL RETURNS OF AT LEAST 10 FROM THEIR INVESTMENTS OVER THE PAST TWO YEARS THEY HAVE FUNNELED ABOUT 140000 MORE THAN 60 OF THEIR SAVINGS INTO A CORPORATEBOND FUND MR SWISHER SAYS HE UNDERSTANDS THE RISKS AND ISN'T LOSING ANY SLEEP EVERYONE PREDICTS THAT THERE'S GOING TO BE A SIGNIFICANT CHANGE IN RATES THIS YEAR OR NEXT YEAR WE'LL WAIT AND SEE WHAT'S RIGHT THEY MAY FIND OUT WHAT'S WRONG SOME FEAR THAT'S LIKE GOING FROM YOUR MATTRESS TO BUNGEEJUMPING SAYS HELEN PETERS OF COLONIAL MANAGEMENT ASSOCIATES INC A BOSTON MUTUALFUND COMPANY YET SOME MUTUALFUND COMPANIES HAVE BEEN STOKING INVESTOR EXPECTATIONS IT'S EASY TO TRANSFER YOUR CD TO FRANKLIN BREEZES FRANKLIN RESOURCES INC IN THAT MUTUALFUND COMPANY'S HANDY CD TRANSFER FORM AT CITIBANK'S WORLD TRADE CENTER BRANCH CUSTOMERS LOOKING FOR THE BANK'S RATE ON CDS USUALLY POSTED NEAR A BANK'S ENTRANCE NOW FIND ONLY A LISTING OF BONDFUND YIELDS IN THE LOBBY BUT MUTUALFUND EXECUTIVES ARE STARTING TO WORRY THAT THEIR NEW INVESTORS COULD PROVE FICKLE THAT AS SOON AS RATES RISE AGAIN THE NEWCOMERS MIGHT QUICKLY SELL THEIR BONDFUND SHARES AND THUS HELP ACCELERATE A DOWNTURN IN BOND PRICES WE HOPE WE CAN CONVINCE THESE INVESTORS TO STAY IN BUT THE REALITY IS THAT WE DON'T KNOW IF WE CAN SAYS NEAL LITVACK EXECUTIVE VICE PRESIDENT OF MARKETING AT FIDELITY INVESTMENTS IN BOSTON THE NATION'S LARGEST MUTUALFUND COMPANY J MICHAEL MARTIN AN ELLICOTT CITY MD FINANCIAL PLANNER HAS JUST THE KIND OF CLIENTS THAT WORRY FUNDS HE TOLD ONE OF THEM A 57YEAROLD ELECTRICAL ENGINEER TO PUT HALF OF HIS 500000 RETIREMENT SAVINGS INTO TREASURY BONDS AND VANGUARD GROUP BOND MUTUAL FUNDS LAST DECEMBER SO FAR HIS CLIENT IS THRILLED WITH A 14 ANNUALIZED RETURN BUT WHEN INTEREST RATES TURN UP AGAIN THE ENGINEER SAYS HE WILL TURN ON A DIME AND CASH OUT HE INTENDS TO BEAT THE RUSH TO THE EXIT BY DUMPING HIS BONDFUND SHARES BEFORE LONGTERM YIELDS HAVE RISEN 15 PERCENTAGE POINTS MANY MUTUALFUND MANAGERS FEAR THAT WHEN INTEREST RATES RISE THEY COULD FACE EVEN WORSE PANIC SELLING THAN THEY DID THE LAST TIME RATES SHOT UP IN 1987 THAT YEAR ABOUT 10 OF FIDELITY'S BONDFUND ASSETS FLEW OUT THE DOOR IN APRIL ALONE MR LITVACK HOPES THAT IN THE EVENT OF A SHARP MARKET CORRECTION JUST 5 OF BONDFUND ASSETS WOULD BE REDEEMED BUT TODAY THE MUTUALFUND INDUSTRY'S BOND ASSETS UNDER MANAGEMENT ARE 2 1/2 TIMES THE 1987 LEVEL SO EVEN A 5 WITHDRAWAL WOULD DRAIN MORE MONEY IN ABSOLUTE TERMS NOT EVERYONE IS WORRIED DAVID SWANSON A SHAREHOLDERMARKETING OFFICIAL AT KEMPER FINANCIAL SERVICES INC CONTENDS THAT PEOPLE ARE MORE SAVVY ABOUT MUTUAL FUNDS THIS TIME AROUND AND LESS LIKELY TO RUSH TO SELL IF SHARE PRICES DROP A BIT MOREOVER MUTUAL FUNDS HAVE GREATER EXPERIENCE WITH A VARIETY OF HEDGE INSTRUMENTS TO PROTECT AGAINST THE EFFECT OF RISING RATES SAYS THOMAS KLAFFKY MANAGING DIRECTOR OF BONDPORTFOLIO ANALYSIS GROUP AT SALOMON BROTHERS INC FOR EXAMPLE GEOFFREY L KURINSKY SENIOR VICE PRESIDENT OF FIXEDINCOME INVESTMENTS AT MASSACHUSETTS FINANCIAL SERVICES ASSET MANAGEMENT GROUP HAS LOADED SOME OF ITS BOND FUNDS WITH AN EXOTIC SECURITY CONSTRUCTED BY GOLDMAN SACHS AND DESIGNED TO GAIN IN VALUE IF OIL PRICES RISE IN THE PAST RISING OIL PRICES HAVE INDICATED RISING INFLATIONWHICH TYPICALLY PUSHES UP INTEREST RATES AND HURTS BOND PRICES AND RISING RATES AREN'T ALL BAD INVESTORS COULD REINVEST COUPON PAYMENTS FROM THEIR LOWERYIELDING BONDS IN NEW HIGHERYIELDING ISSUES SO IF RATES RISE SLOWLY TOTAL RETURNS MAY NOT DROP VERY SHARPLY ALL THE SAME MUTUALFUND EXECUTIVES ARE PIPING OUT MORE WARNINGS TO SHAREHOLDERS THIS SUMMER THE INVESTMENT COMPANY INSTITUTE SENT 40000 BROKERS AND FINANCIAL PLANNERS A PAMPHLET STAMPED FOR YOUR IMMEDIATE ATTENTION AND WARNING THEM THAT INVESTORS' KNOWLEDGE OF BOND FUNDS IS NOT AS STRONG AS IT MIGHT BE BY EDUCATING YOUR CLIENTS YOU CAN PREVENT UNPLEASANT SURPRISES WHEN INTEREST RATES CHANGE EVEN FIRMS THAT REGULARLY WARN SHAREHOLDERS ABOUT THE RISKS OF BOND INVESTMENTS SEE A NEED TO BE MORE EXPLICIT VANGUARD GROUP PLANS A FAIRLY EXTENSIVE ESSAY ON RISKS IN THE BOND MARKET IN ITS FALL NEWSLETTER A SPOKESMAN SAYS A CURRENT VANGUARD GUIDEBOOK FOCUSES ON THE EFFECT OF RATE CHANGES ON BONDS YIELDING 10 EVEN THOUGH COUPONS FOR ANYTHING BUT HIGHYIELD HIGHRISK BONDS HAVE BEEN WELL BELOW THAT LEVEL FOR SOME TIME AS A RESULT THOSE CALCULATIONS DON'T SHOW HOW BOND PRICES WOULD FALL IF RATES ROSE FROM TODAY'S MUCHLOWER LEVELS THE SPOKESMAN CALLS THE HIGH YIELD AN OVERSIGHT AND SAYS THE COMPANY WILL UPDATE THE BROCHURE SOME FUND COMPANIES FIND THAT EVEN THEIR SALESMEN DON'T REALIZE THE SIZE OF BONDMARKET RISKS LIBERTY FINANCIAL COS WHICH SELLS FUNDS LARGELY THROUGH BANKS RECENTLY SENT A NEWSLETTER TO 700 REGISTERED REPRESENTATIVES TO HELP THEM UNDERSTAND HOW BONDS' PRINCIPAL WOULD BE AFFECTED BY A RANGE OF INTERESTRATE CHANGES BUT CAN A LEVEE OF PAMPHLETS HOLD BACK A FLOOD OF REDEMPTIONS PROF ARIEL DOUBTS IT THE FUNDS' MAJOR PROBLEM AS HE SEES IT YOU CAN BUY AND SELL THE MARKET IN ONE SINGLE CHUNK WITH ONE PHONE CALL BAD THINGS CAN HAPPEN HE ADDS WHEN ALL OF THE ELEPHANTS HIT THE REVOLVING DOOR AT THE SAME TIME YET THE FUND MANAGERS THEMSELVES UNLIKE THE EXECUTIVES WHO RUN THE FUND COMPANIES DON'T SEEM WORRIED CONSIDER HOW CONFIDENT MANY MANAGERS ARE THE INDUSTRY'S CASH POSITIONS THAT IS MONEY FROM INVESTORS AND INTEREST PAYMENTS NOT YET INVESTED ARE AT A RECORDLOW 47 SO IF INVESTORS RUSH TO WITHDRAW THEIR MONEY THE MANAGERS WILL HAVE LITTLE CHOICE BUT TO SELL BONDS TO RAISE ENOUGH CASH TO MEET THE REDEMPTIONS AND MANY MANAGERS HAVE NEVER ENDURED A PROLONGED BEAR MARKET IN BONDS ONLY 43 OF THE 1542 BOND FUNDS TRACKED BY MORNINGSTAR INC HAVE THE SAME MANAGERS AS 10 YEARS AGO IF MONEY MANAGERS SEEM OVERLY CONFIDENT ABOUT WINNING A MAD RUSH TO THE DOOR AND SALESMEN DON'T KNOW THE RISKS HOW WELLINFORMED CAN THE INVESTORS BE ACCORDING TO FIDELITY'S RESEARCH ABOUT ONEFOURTH OF THE NEW BONDFUND INVESTORS THIS YEAR ARE UNSOPHISTICATED TO MR LITVACK THAT MEANS THEY TEND TO BE GUIDED IN THEIR INVESTMENT CHOICES BY YIELD RATHER THAN BY TOTAL RETURN WHICH INCLUDES THE IMPACT OF BONDPRICE CHANGES MORE THAN HALF DON'T UNDERSTAND HOW MUCH PRICES FALL WHEN INTEREST RATES RISE AND THOSE THAT DO DON'T CARE HE ADDS HE ALSO SAYS INVESTORS DON'T UNDERSTAND THE DISTINCTION BETWEEN INTERMEDIATE AND LONGTERM GOVERNMENTSECURITIES FUNDS NOW YIELDING 517 AND HIGHERRISK CORPORATEBOND FUNDS WITH COMPARABLE MATURITIES YIELDING 587 WE'RE FINDING PEOPLE INVESTED IN CORPORATE FUNDS WHO WOULD BE BETTER SERVED IN LOWERRISK FUNDS HE SAYS THE WIDESPREAD INABILITY TO DISTINGUISH AMONG DIFFERENT KINDS OF FUNDS IS PARTLY DUE TO THE BLURRING OF THE DISTINCTIONS AMONG THE FUNDS THEMSELVES ESPECIALLY AMONG SHORTTERM FUNDS UNDER PRESSURE TO DELIVER YIELD THE FUNDS HAVE LOOSENED THEIR CHARTERS SO MUCH THAT THE NAME DOESN'T TELL YOU ANYTHING SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS NEWSLETTER MANY FUNDS WITH INNOCUOUS NAMES SUCH AS MAS FUNDS FIXED INCOME AND VANGUARD FIXED INCOME SHORT TERM FEDERAL HAVE PLUNGED INTO THE ARCANE AND AT TIMES CAPRICIOUS WORLD OF MORTGAGEBACKED SECURITIES AND THE JUNKBOND MARKET IS BOOMING WITH MUTUAL FUNDS PROMINENT AMONG THE BUYERS SO FAR THIS YEAR LOWERCREDITQUALITY ISSUERS HAVE RAISED NEARLY 50 BILLION IN PUBLIC AND PRIVATE OFFERINGS ALREADY EXCEEDING LAST YEAR'S RECORD 37 BILLION AND OUTPACING EVEN THE HEADIEST DAYS OF THE 1980S AND THE FLAVOR OF JUNK ISSUES IS BECOMING SPICIER WITH REFINANCINGS GIVING WAY TO MORE SPECULATIVE VENTURES EARLIER THIS SUMMER THE MARKET WELCOMED BACK DONALD TRUMP ONLY A FEW YEARS AFTER HIS DEBTHEAVY CASINOS DEFAULTED EVEN TWICEBANKRUPT COMPANIES HAVE BEEN ABLE TO INCREASE THE SIZE OF THEIR BOND OFFERINGS AND SMALLER ISSUERS HAVE PUMPED OUT A RECORD NUMBER OF BONDS ANOTHER OMINOUS SIGN THE SAME DEVELOPING NATIONS THAT WERE PARIAHS OF THE INTERNATIONAL DEBT MARKETS A DECADE AGO AFTER HUGE DEFAULTS ARE NOW SOUGHT OUT BY US INVESTORS HUNGRY FOR HIGHER YIELDS THIS SUMMER ALLIANCE CAPITAL MANAGEMENT LP NEEDED JUST A MONTH TO ATTRACT 900 MILLION TO A NEW CLOSEDEND FUND SPECIALIZING IN DEVELOPINGNATION BONDS EVEN THE FUNDS' HEDGING STRATEGIES WORRY ROBERT RODRIGUEZ WHO MANAGES FPA NEW INCOME SO MANY HEDGES BLOW UP THE BOND MANAGER SAYS THE ONLY PROTECTION ONE CAN HAVE IS TO HAVE A SHORTER AVERAGE MATURITY IN ORDER TO MINIMIZE THE NEGATIVE IMPACT FROM THE RISE IN RATES HE CALLS THE COMPLEX STRUCTURED SECURITIES USED BY FUND MANAGERS TO BOOST YIELDS TOWHOM BONDS BECAUSE IF RATES RISE MANAGERS WILL BE SCRAMBLING TO FIND TO WHOM THEY MIGHT BE SOLD THAT'S ONE REASON HE SHUNS SUCH INVESTMENTS AND HOLDS AN EXTRAORDINARY 21 OF HIS FUND'S ASSETS IN CASH MOST PEOPLE ARE FOCUSING ON RETURN ON CAPITAL HE SAYS I AM FOCUSING ON RETURN OF CAPITAL 9308300059 930830 BUSINESS BRIEF COLUMBIA HOSPITAL CORP ACCORD WITH FTC CLEARS WAY FOR MERGER WITH GALEN COLUMBIA HOSPITAL CORP AND GALEN HEALTH CARE INC SAID THE FEDERAL TRADE COMMISSION CLEARED THEIR PROPOSED MERGER AFTER THE AGENCY ACCEPTED COLUMBIA'S DECISION TO SELL A HOSPITAL IN FLORIDA THAT HAD RAISED ANTITRUST CONCERNS WITH THAT HURDLE REMOVED THE HOSPITAL CHAINS ALSO SCHEDULED SEPARATE SHAREHOLDER VOTES ON THE PROPOSED 32 BILLION MERGER TOMORROW IF APPROVED THE MERGER IS EXPECTED TO BE COMPLETED ON WEDNESDAY THE COMPANIES SAID FORT WORTH TEXASBASED COLUMBIA SAID LAST WEEK THAT IT SOLD THREE HOSPITALS TO TWO PURCHASERS THE HOSPITALS SOLD INCLUDED KISSIMMEE MEMORIAL HOSPITAL IN KISSIMMEE FLA THE FTC HAD BEEN CONCERNED ABOUT THE EFFECT THE PROPOSED MERGER WOULD HAVE IN THE MARKET FOR ACUTECARE INPATIENT HOSPITAL SERVICES IN OSCEOLA COUNTY WHERE KISSIMMEE IS LOCATED COLUMBIA SAID THE AGREEMENT WITH THE FTC ALSO RESTRICTS THE COMPANIES FROM ACQUIRING ANY OTHER HOSPITAL IN THE OSCEOLA COUNTY AREA FOR 10 YEARS WITHOUT THE AGENCY'S APPROVAL 9308300058 930830 WHAT'S NEWS WORLDWIDE ISRAEL'S CABINET PLANNED TO REVIEW AN ACCORD ON PALESTINIAN AUTONOMY THE PROPOSAL WHICH WOULD GIVE PALESTINIANS AUTHORITY OVER THE GAZA STRIP AND THE WEST BANK CITY OF JERICHO WAS TO BE DISCUSSED AT A CABINET MEETING TODAY THE SELFRULE PLAN ALSO WILL HEAD THE AGENDA WHEN MIDEAST TALKS RESUME IN WASHINGTON TOMORROW ISRAELI RADIO SAID ISRAEL AND THE PLO WERE CONSIDERING MUTUAL RECOGNITION AS PART OF THE PACKAGE GAPS REMAIN BETWEEN THE ISRAELI AND PALESTINIAN POSITIONS ON THE ACCORD WHICH REPORTEDLY WAS REACHED DURING TALKS BETWEEN FOREIGN MINISTER PERES AND A PLO OFFICIAL THE ISRAELI RIGHT WING IS GEARING UP TO OPPOSE ANY AGREEMENT THE OPPOSITION LIKUD PARTY IS SPONSORING A NOCONFIDENCE MOTION IN PARLIAMENT TODAY BOSNIA'S FACTIONS PREPARED TO SET CONDITIONS FOR ACCEPTING A PEACE PLAN THE RIVAL GROUPS WERE EXPECTED TO RETURN TO GENEVA TO PRESENT THEIR OFFICIAL RESPONSES TO A PROPOSAL FOR PARTITIONING BOSNIA INTO THREE ETHNIC STATES MEDIATORS HAVE SET TODAY AS THE DEADLINE FOR APPROVING THE PROPOSAL THE PARLIAMENT OF THE SELFPROCLAIMED BOSNIAN SERB REPUBLIC APPROVED THE PLAN SATURDAY BUT WILL PRESS FOR THE LIFTING OF UN SANCTIONS AGAINST BELGRADE MEANWHILE BOSNIA'S MUSLIMLED GOVERNMENT AND THE CROAT ASSEMBLY CALLED FOR AMENDMENTS TO THE PROPOSED TERRITORIAL BORDERS IN SOUTHWESTERN BOSNIA UN OFFICIALS WERE NEGOTIATING TO ARRANGE AN EXIT FOR 53 UN PEACEKEEPERS TRAPPED IN MOSTAR BY MUSLIM CIVILIANS ELITE US TROOPS RAIDED A BUILDING IN MOGADISHU SOMALIA'S CAPITAL BEFORE DAWN MONDAY IN AN APPARENT OPERATION AGAINST FUGITIVE WARLORD MOHAMED FARRAH AIDID WITNESSES SAID ABOUT 40 AMERICAN ATTACK HELICOPTERS PARTICIPATED IN THE ASSAULT AND FIRED AT SEVERAL TARGETS IN SOUTHERN MOGADISHU AIDID IS WANTED BY THE UN IN THE KILLINGS OF PEACEKEEPERS IN SOMALIA DEFENSE SECRETARY ASPIN SAID US FORCES WON'T PULL OUT OF SOMALIA ANYTIME SOON BEFORE THERE IS AN AMERICAN WITHDRAWAL HE SAID FRIDAY HEAVY WEAPONS MUST BE TAKEN OUT OF THE HANDS OF SOMALI CLAN LEADERS CREDIBLE POLICE FORCES MUST BEGIN PATROLLING THE MAJOR CITIES AND SECURITY PROBLEMS IN SOUTHERN MOGADISHU MUST BE SETTLED THE SECURITY COUNCIL SUSPENDED A CRIPPLING 2 1/2MONTHOLD OIL EMBARGO AND OTHER ECONOMIC SANCTIONS AGAINST HAITI ON FRIDAY AS A DEMOCRATIC GOVERNMENT PREPARED TO TAKE OFFICE THERE BY OCT 30 THE UNANIMOUS DECISION TO SUSPEND THE SANCTIONS WAS EFFECTIVE IMMEDIATELY OIL SHIPMENTS ARE EXPECTED TO BEGIN ARRIVING THIS WEEK SENATE REPUBLICAN LEADER DOLE SAID HIS PARTY IS READY TO WORK WITH CLINTON ON A COMPROMISE HEALTHCARE REFORM PACKAGE BUT HE PREDICTED THAT THE LEGISLATION WON'T BE APPROVED THIS YEAR THE KANSAS LAWMAKER SAID SEVERAL GOP HEALTH PROPOSALS ARE EXPECTED TO BE INTRODUCED AS ALTERNATIVES TO THE PRESIDENT'S PLAN UNITA REBELS ATTACKED A UN FOOD CONVOY IN CENTRAL ANGOLA OVER THE WEEKEND KILLING TWO RELIEF WORKERS AND DESTROYING TWO VEHICLES ACCORDING TO NEWS REPORTS THERE WAS NO OFFICIAL CONFIRMATION OF THE GUERRILLA ASSAULT ON THE WORLD FOOD PROGRAM TRUCKS IN COASTAL BENGUELA PROVINCE NIGERIA'S INTERIM GOVERNMENT ORDERED THE RELEASE OF THREE PRODEMOCRACY LEADERS DETAINED SINCE JULY MEANWHILE UNIONS STAGED A STRIKE OVER THE MILITARY'S INSTALLATION OF INTERIM LEADER ERNEST SHONEKAN THE RELEASE OF THE ACTIVISTS WAS SHONEKAN'S FIRST MAJOR ACTION SINCE HE SUCCEEDED FORMER MILITARY LEADER BABANGIDA LAST WEEK MEXICAN LAWMAKERS APPROVED CONSTITUTIONAL REFORMS OVER THE WEEKEND THAT ARE DESIGNED TO REDUCE ELECTION FRAUD THE ADMINISTRATION OF PRESIDENT SALINAS ALSO ISSUED RULES REQUIRING THAT GOVERNMENT OFFICIALS BE AUDITED TO DETERMINE THEIR NET WORTH AND INCOME A DAM BURST IN CHINA'S REMOTE WESTERN QINGHAI PROVINCE FLOODING NUMEROUS VILLAGES AND KILLING AT LEAST 223 PEOPLE OFFICIALS SAID THOUSANDS OF PEOPLE WERE INJURED AND MANY WERE STILL MISSING AFTER FRIDAY'S ACCIDENT AT THE GOUHOU RESERVOIR ONG TENG CHEONG WON SINGAPORE'S FIRST PRESIDENTIAL ELECTION ON SATURDAY AS EXPECTED ONG A FORMER DEPUTY PRIME MINISTER AND LABOR LEADER TOOK 59 OF THE VOTES CAST IN THE TWOWAY RACE HIS OPPONENT A FORMER BANK EXECUTIVE WON 41 THOUGH HE DIDN'T WAGE A FORMAL CAMPAIGN AND HAD SAID ONG WAS THE SUPERIOR CANDIDATE 9308300057 930830 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN THE HEAD OF UKRAINE'S ECONOMIC REFORM PROGRAM RESIGNED DURING A LIVE TELEVISED INTERVIEW BLAMING CONSERVATIVE LAWMAKERS FOR THWARTING HIS PLANS THE ABRUPT DEPARTURE FRIDAY OF DEPUTY PRIME MINISTER VIKTOR PYNZENYK PLUNGED THE FORMER SOVIET REPUBLIC INTO DEEP CRISIS INDEED PRIME MINISTER LEONID KUCHMA SAID MR PYNZENYK'S DEPARTURE MAY PRECIPITATE THE FALL OF HIS GOVERNMENT MR PYNZENYK SAID THE REFORMIST MR KUCHMA HAD LOST CONTROL OF THE SITUATION REFORMS IN UKRAINE HAVE LAGGED FAR BEHIND RUSSIA'S AND THE COUNTRY REMAINS WITHOUT A FORMAL ECONOMIC PLAN THE LATEST PROGRAM AIMED AT REINING IN MONTHLY INFLATION OF 40 AND A HUGE BUDGET DEFICIT IS TO BE PRESENTED TO PARLIAMENT THIS WEEK MR PYNZENYK AND OTHER REFORMERS HAVE ACCUSED DEPUTIES OF FUELING INFLATION BY APPROVING HUGE CREDITS FOR AGRICULTURE AND INDUSTRY PARLIAMENT HAS BEEN DEADLOCKED OVER WHETHER TO STAGE VOTES OF CONFIDENCE IN THE GOVERNMENT OR ORDER NEW ELECTIONS LI XIAOSHI A VICE MINISTER OF CHINA'S STATE SCIENCE AND TECHNOLOGY COMMISSION IS AMONG 20 SUSPECTS CHARGED IN THE HUGE CHANGCHENG CO BOND FRAUD CASE THE LATEST INDICATOR OF THE SCOPE OF CORRUPTION IN GOVERNMENT MR LI IS THE HIGHESTLEVEL OFFICIAL CHARGED THIS YEAR BUT CHINA'S CHIEF GRAFTNVESTIGATOR SAID THE SEARCH FOR CHANGCHENG'S ASSETS WAS NEARLY OVER AND HOPE WAS FADING FOR RECOVERING THE 175 MILLION SWINDLED FROM AS MANY AS 200000 INVESTORS MORE ARRESTS ARE EXPECTED INDIA'S SUPREME COURT ORDERED THE CLOSURE OF 212 FACTORIES NEAR THE TAJ MAHAL BECAUSE THEIR POLLUTION IS DAMAGING THE 17THCENTURY INLAIDMARBLE MONUMENT THE PLANT SHUTDOWNS WILL PUT THOUSANDS OF INDIANS OUT OF WORK SULFUR FUMES FROM FOUNDRIES AND SMOKE FROM POWER GENERATORS IN THE INDUSTRIAL BELT NEAR THE CITY OF AGRA ABOUT 120 MILES SOUTH OF NEW DELHI HAVE CORRODED AND STAINED THE INLAID WHITE MARBLE OF THE TAJ MAHAL AN ELABORATE TOMB BUILT BY MOGUL EMPEROR SHAH JAHAN FOR HIS WIFE AIR SAMPLES AT THE COMPLEX CONTAINED AS MUCH AS EIGHT TIMES THE PERMISSIBLE LEVELS OF POLLUTANTS THE COURT SAID THE INDUSTRIES HADN'T MET DEMANDS TO INSTALL POLLUTIONCONTROL DEVICES SOME 800 STRIKING WORKERS AT HUNGARY'S AEROPLEX AIRCRAFT MAINTENANCE COMPANY AGREED TO RETURN TO WORK WHILE TALKS ON THEIR WAGE DEMANDS CONTINUED STATEOWNED CARRIER MALEV WHICH OWNS AEROPLEX WITH LOCKHEED CORP MAINTAINED MOST OF ITS NORMAL SCHEDULE SINCE THE STRIKE BEGAN WEDNESDAY BY BRINGING IN 20 BRITISH WORKERS UNION LEADERS SAID THIS CAUSED A SAFETY HAZARD PROMPTING THEM TO SUSPEND THE STRIKE AEROPLEX ALSO PROVIDES MAINTENANCE SERVICES FOR AIR FRANCE LUFTHANSA AND EL AL ISRAELI AIRLINES POLAND'S CENTRAL BANK DEVALUED THE NATIONAL CURRENCY IN A MOVE APPARENTLY AIMED AT HELPING THE COUNTRY'S TRADE BALANCE WHICH HAS SLIPPED TO A DEFICIT THIS YEAR THE 8 DEVALUATION WAS AGAINST A BASKET OF WESTERN CURRENCIES THE DEVALUATION AGAINST THE DOLLAR WHICH IS PART OF THE BASKET WAS SLIGHTLY HIGHER EXPORTERS OF POLISH GOODS HAD COMPLAINED THAT THE EXCHANGE RATE MADE THEIR PRODUCTS TOO EXPENSIVE IN THE FIRST FIVE MONTHS OF 1993 POLAND'S EXPORTS TOTALED 52 BILLION DOWN 8 FROM A YEAR EARLIER WHILE IMPORTS CLIMBED 22 TO NEARLY 6 BILLION AMID AN OUTCRY FROM WORLD RELIGIOUS AND POLITICAL LEADERS RUSSIAN LAWMAKERS ABANDONED ATTEMPTS TO RESTRICT FOREIGN MISSIONARIES' ACTIVITIES THE SUPREME SOVIET ADOPTED AMENDMENTS TO RUSSIA'S LAW ON FREEDOM OF RELIGION THAT REMOVE PROVISIONS BANNING FOREIGNERS FROM PROSELYTIZING IN RUSSIA THE AMENDMENTS STILL OFFER PREFERENTIAL TREATMENT TO THE RUSSIAN ORTHODOX CHURCH BUT PLACE NO NEW RESTRICTIONS ON FOREIGN GROUPS SOME LAWMAKERS HAD WANTED TO REQUIRE FOREIGN GROUPS TO AFFILIATE WITH RUSSIAN CHURCHES OR OBTAIN STATE ACCREDITATION THOSE PROPOSALS WERE BACKED BY THE RUSSIAN ORTHODOX CHURCH JAPAN'S TRANSPORT MINISTRY CALLED FOR AIRLINES TO USE MORE DISCOUNT FARES AMID AN EFFORT BY THE NEW GOVERNMENT TO STIMULATE DOMESTIC DEMAND THROUGH LOWER PRICES AND DEREGULATION A STUDY CITED BY THE MINISTRY FOUND NOMINAL DOMESTIC FARES AT JAPANESE AIRLINES WERE LESS THAN HALF US AIRLINES' COMPARABLE FARES BUT WIDESPREAD DISCOUNTING MADE US FARES CHEAPER THE CALL FOR WIDER DISCOUNTING BY JAPANESE CARRIERS FOR DOMESTIC FLIGHTS COULD BE PART OF THE EMERGENCY ECONOMIC PACKAGE BEING PUT TOGETHER BY TOKYO BUT AIRLINE OFFICIALS NOTED THAT DISCOUNTING IN SOME FORM ALREADY EXISTS DOMESTICALLY ON JAPAN AIR LINES BESIDES GROUP RATES DISCOUNTS OF 10 TO 35 ARE AVAILABLE TO ACCOMPANYING SPOUSES FAMILIES TRAVELING TOGETHER STUDENTS WOMEN ROUNDTRIP TRAVELERS AND WEEKDAY TRAVELERS BEIJING CONTINUED A CRACKDOWN ON OFFICIAL CORRUPTION YU ZUOMIN FORMER COMMUNIST PARTY BOSS IN DAQIUZHUANG CHINA'S RICHEST VILLAGE WAS SENTENCED TO 20 YEARS IN PRISON FOR HARBORING CRIMINALS OBSTRUCTING JUSTICE BRIBERY UNLAWFUL DETENTION AND UNLAWFUL CONTROL OF PEOPLE YUGOSLAVIA WILL ISSUE A 1 BILLION DINAR BANK NOTE TO TRY TO KEEP UP WITH AN INFLATION RATE OF 20 A DAY THE NOTE WOULD BE WORTH ABOUT 3 AT THE CURRENT EXCHANGE RATE 9308300056 930830 BUSINESS BRIEF GENERAL DYNAMICS CORP LAND SYSTEMS DIVISION PLANS 700 MORE LAYOFFS BY NOV 1 GENERAL DYNAMICS CORP STERLING HEIGHTS MICH SAID ITS LAND SYSTEMS DIVISION WILL LAY OFF ABOUT 700 EMPLOYEES BY NOV 1 BRINGING TOTAL LAYOFFS AT THE DIVISION THIS YEAR TO ABOUT 1600 THIS REDUCTION IS NECESSARY BECAUSE OF INCREASINGLY COMPETITIVE PRESSURES IN THE GLOBAL DEFENSE MARKET SMALLER DEFENSE BUDGETS DECLINING SALES VOLUME AND THE NEED TO ACHIEVE CONTRACT COSTS SAID ROGER E TETRAULT PRESIDENT OF THE DIVISION WHICH HAS MORE THAN 5800 EMPLOYEES IN SIX STATES AND BUILDS ABRAMS TANKS AND PROVIDES ASSOCIATED SUPPORT SERVICES FOR THE US ARMY AND INTERNATIONAL CUSTOMERS THE LAYOFFS WILL AFFECT EMPLOYEES IN MICHIGAN OHIO AND PENNSYLVANIA GENERAL DYNAMICS IS A DEFENSE CONTRACTOR AND AEROSPACE CONCERN 9308300055 930830 TECHNOLOGY BRIEF DIGITAL EQUIPMENT CORP NEW LOWCOST COMPUTERS INCLUDE EXPANDED OPTIONS DIGITAL EQUIPMENT CORP WILL OFFER EXPANDED OPTIONS AND AN EXTENDED WARRANTY ON LOWCOST PERSONAL COMPUTERS IT WILL BEGIN SELLING TODAY DIGITAL BASED IN MAYNARD MASS BEGAN SELLING THE LP LINE ITS LOWCOST DESKTOP PERSONAL COMPUTERS MANUFACTURED INHOUSE LAST AUGUST IT IS REPLACING THAT MODEL WITH TWO NEW VERSIONS THE NEW LPV LINE PRICED AT BETWEEN 1049 AND 1799 OFFERS EXPANDED VIDEO CAPABILITIES WITH ABOUT THE SAME COMPUTING POWER AS THE VERSION ROLLED OUT LAST SUMMER SAYS DIGITAL SPOKESMAN PETER BASMAJIAN THE PRICE DOES NOT INCLUDE A MONITOR THE NEW LPX LINE PRICED AT 1299 TO 1949 WITHOUT A MONITOR IS A MORE POWERFUL MACHINE THAT CAN BE UPGRADED TO PENTIUM THE NEXT GENERATION OF INTEL CORP MICROPROCESSORS MR BASMAJIAN SAID THE NEW PERSONAL COMPUTERS ALSO CARRY A THREEYEAR WARRANTY DIGITAL SAYS BEYOND THE PREVIOUS ONEYEAR WARRANTY 9308300054 930830 EMERSON RADIO EXPECTS LOSS FOR 4TH QUARTER COMPANY IN MIDST OF DEBT TALKS SEES 39 MILLION DEFICIT FOR FISCAL PERIOD BY MARIA MOOSHIL SPECIAL TO THE WALL STREET JOURNAL NEW YORK EMERSON RADIO CORP WHICH IS IN THE MIDST OF DEBT RESTRUCTURING NEGOTIATIONS WITH ITS CREDITORS EXPECTS TO REPORT A FISCAL FOURTHQUARTER LOSS OF ABOUT 39 MILLION OR 102 A SHARE THE COMPANY'S ACTING CHIEF FINANCIAL OFFICER SAID SEPARATELY THE COMPANY'S LARGEST SHAREHOLDER FIDENAS INVESTMENT LTD HAS PROPOSED A COMPLETE BUYOUT OF EMERSON'S 225 MILLION IN DEBT FOR 75 MILLION WITH THE COMPANY CONTRIBUTING ASSETS TARGETED FOR LIQUIDATION ACTING CHIEF FINANCIAL OFFICER EUGENE GENE DAVIS SAID THE PROPOSAL HAS BEEN NEGOTIATED EXTENSIVELY SINCE MAY WHEN EMERSON REACHED PRELIMINARY AGREEMENT WITH ITS BANK AND INSURANCE CREDITORS TO RESTRUCTURE ITS DEBT SAID MR DAVIS WHO IS ALSO EMERSON'S EXECUTIVE VICE PRESIDENT CORPORATE DEVELOPMENT AND REGULATORY AFFAIRS THE COMPANY HAS POSTPONED ITS FISCAL YEAREND FILING TO INCLUDE AS MANY DETAILS ABOUT THE NEGOTIATIONS AS POSSIBLE MR DAVIS SAID EARLIER THIS YEAR THE COMPANY CHANGED ITS FISCAL YEAR TO MARCH 31 FROM DEC 31 THE EXPECTED LOSS FOR THE FOURTH QUARTER ENDED MARCH INCLUDES 165 MILLION OR 43 CENTS A SHARE IN RESTRUCTURING CHARGES MR DAVIS SAID THE COMPANY'S LATEST RESTRUCTURING WILL BE COMPLETED BY MIDOCTOBER MR DAVIS SAID SALES FOR THE QUARTER ARE EXPECTED TO TOTAL ABOUT 975 MILLION HE SAID FOR THE QUARTER ENDED MARCH 1992 EMERSON HAD A LOSS OF 69 MILLION OR 18 CENTS A SHARE INCLUDING A RESTRUCTURING CHARGE OF 40 MILLION OR 105 A SHARE SALES FOR THE QUARTER WERE 1699 MILLION THE PARSIPPANY NJ DISTRIBUTOR OF LOWTOMIDPRICED VIDEOCASSETTE RECORDERS TELEVISIONS AND MICROWAVE OVENS BLAMES THE WEAKER RESULTS IN THE RECENT FOURTH QUARTER ON THE DEBT RESTRUCTURING NEGOTIATIONS WHICH IMPEDED SALES EFFORTS AND FIERCE PRICECUTTING IN THE INDUSTRY THIS YEAR WAS A FIGHT FOR SHELF SPACE SAID MR DAVIS WHO NOTED THAT HIGHEREND PRODUCTS FROM COMPANIES SUCH AS SONY CORP FOUND THEIR WAY INTO LOWERPRICED EMERSON'S DISTRIBUTION CHANNELS THE PRICE BATTLE IS REFLECTED IN THE MARCH FISCAL YEAR'S SALES WHICH DROPPED TO 741 MILLION FROM 752 MILLION THE EXECUTIVE SAID THE PRIOR FISCAL YEAR'S SALES DON'T INCLUDE 48 MILLION IN PERSONAL COMPUTER SALES WHICH THE COMPANY NO LONGER MARKETS MR DAVIS SAID FOR THE YEAR THE COMPANY HAD A LOSS OF 56 MILLION OR 147 A SHARE INCLUDING ABOUT 35 MILLION OR 90 CENTS A SHARE IN RESTRUCTURING CHARGES IN FISCAL 1992 THE COMPANY HAD A LOSS OF 528 MILLION OR 139 A SHARE INCLUDING RESTRUCTURING CHARGES OF ABOUT 40 MILLION OR 105 A SHARE INCLUDED IN ALL REPORTING PERIODS ARE SUBSTANTIAL INTEREST CHARGES 18 MILLION FOR EACH OF THE PAST TWO FISCAL YEARS AND ABOUT 45 MILLION FOR EACH FOURTH QUARTER THE COMPANY EXPECTS THOSE PAYMENTS TO BE SIGNIFICANTLY REDUCED WITH THE CONCLUSION OF DEBTRESTRUCTURING NEGOTIATIONS MR DAVIS SAID UNDER THE CURRENT PROPOSAL FIDENAS INVESTMENT WOULD RECEIVE ADDITIONAL EQUITY IN EMERSON WHILE THE COMPANY'S TOTAL DEBT WOULD BE REDUCED BY ABOUT 145 MILLION MR DAVIS SAID HE DECLINED TO PLACE A VALUE ON THE ASSETS TARGETED FOR LIQUIDATION A GROUP LED BY FIDENAS LAST YEAR WON CONTROL OF THE COMPANY'S BOARD IN A PROXY FIGHT FIDENAS NOW OWNS ABOUT 205 OF THE COMPANY'S 38 MILLION SHARES OUTSTANDING MR DAVIS SAID THE AGREEMENT IN PRINCIPLE REACHED IN MAY CALLED FOR CUTTING 100 MILLION OF THE DEBT THROUGH AN EQUITY CONVERSION AND BY RESTRUCTURING THE REMAINDER THROUGH A 60 MILLION SECURED CREDIT LINE FROM EMERSON'S LENDING BANKS AND A 65 MILLION SECURED TERM LOAN WITH THE BANKS AND SENIOR NOTEHOLDERS THE NEW PLAN INCLUDES A RIGHTS OFFERING PROPOSAL FOR SHAREHOLDERS JUST AS IN THE MAY PROPOSAL MR DAVIS SAID MONEY RAISED THROUGH SUCH AN OFFERING WOULD BE USED AS WORKING CAPITAL HE SAID THE COMPANY HAS ABOUT 4500 TO 4600 SHAREHOLDERS INCLUDING INSTITUTIONS AND INDIVIDUAL HOLDERS HE SAID MR DAVIS DECLINED TO SPECULATE WHEN THE DEBT NEGOTIATIONS MIGHT CONCLUDE BUT SAID THE CREDITORS' GROUP HAS SHOWN SUFFICIENT INTEREST IN THE PLAN WE'RE MOVING IN THE DIRECTION OF CONSUMMATION OF SOMETHING THAT WOULD TAKE OUT THE CREDITORS HE SAID 9308300053 930830 BUSINESS BRIEF ALTAI INC TRADESECRET MISUSE CLAIMS ARE DISMISSED BY US COURT ALTAI INC ARLINGTON TEXAS SAID A FEDERAL DISTRICT COURT IN NEW YORK DISMISSED TRADESECRET CLAIMS AGAINST IT IN A CIVIL LAWSUIT FILED BY COMPUTER ASSOCIATES INTERNATIONAL INC ISLANDIA NY JUDGE GEORGE C PRATT OF THE SECOND US CIRCUIT COURT OF APPEALS SITTING BY DESIGNATION IN THE US DISTRICT COURT FOR THE EASTERN DISTRICT OF NEW YORK ALSO DENIED COMPUTER ASSOCIATES' MOTION TO REOPEN DISCOVERY AND THE TRIAL IN THE CASE THE ORDER RESOLVED ALL REMAINING ALLEGATIONS IN A SUIT FILED FOUR YEARS AGO IN WHICH COMPUTER ASSOCIATES SAID ALTAI INFRINGED COPYRIGHTED COMPUTER SOFTWARE AND MISAPPROPRIATED TRADE SECRETS JUDGE PRATT RULED TWO YEARS AGO THAT ALTAI'S OSCAR 35 INTERFACE PROGRAM AND PRODUCTS BASED ON THAT PROGRAM DIDN'T INFRINGE COMPUTER ASSOCIATES' COPYRIGHT THE SECOND CIRCUIT UPHELD THAT RULING BUT REMANDED THE CASE FOR FURTHER CONSIDERATION OF THE TRADESECRET CLAIMS IN HIS AUG 20 ORDER JUDGE PRATT SAID HE DISMISSED THOSE CLAIMS BECAUSE THEY WERE BARRED BY THE TEXAS STATUTE OF LIMITATIONS 9308300052 930830 MARKETING BANKS COURT DISENCHANTED CUSTOMERS BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL BANKERS ARE DEVOTING MORE ATTENTION TO A NEGLECTED GROUP OF PEOPLE THEIR CUSTOMERS NO LONGER PASSIVE ORDERTAKERS SITTING BEHIND MAHOGANY DESKS BANKERS ARE TAKING A PAGE OUT OF RETAILING HANDBOOKS AND BECOMING MORE SALESDRIVEN AT NATIONSBANK CORP IN CHARLOTTE NC PROSPECTIVE EMPLOYEES ARE TESTED FOR AMONG OTHER THINGS THEIR SALES ABILITY AT BANC ONE CORP IN COLUMBUS OHIO BANK PERSONNEL HOLD ANNUAL SIDEWALK SALES GRILLING HOT DOGS AND ENTICING CUSTOMERS WITH SPECIALS ON LOANS AND CREDIT CARDS ONCE INSIDE CONSUMERS RECEIVE A SALES PITCH ON A VARIETY OF PRODUCTS FROM ANNUITIES TO STOCKS AT BANK SOUTH CORP IN ATLANTA SOME BRANCHES ARE OPEN ON MEMORIAL DAY AND JULY 4 WHY ALL THE CHANGES SURVIVAL A HOST OF NONBANK COMPETITORS LIKE BROKERAGE FIRM MERRILL LYNCH & CO HAVE BEEN CHIPPING AWAY AT THE BANKING INDUSTRY'S TRADITIONAL TURF BANK DEPOSITS WHICH CONSTITUTED ALMOST HALF OF HOUSEHOLD FINANCIAL INVESTMENTS IN 1980 SHRANK TO 38 BY 1990 AND WILL DROP TO 32 BY 1995 ACCORDING TO MCKINSEY & CO A CONSULTING FIRM MEANWHILE MUTUAL FUNDS WHICH NOW GENERALLY YIELD HIGHER RETURNS BALLOONED TO 12 OF FINANCIAL INVESTMENTS BY 1990 FROM 36 A DECADE EARLIER WHAT'S MORE THERE ARE ALMOST TWO DISSATISFIED CUSTOMERS FOR EVERY ONE SATISFIED CUSTOMER ACCORDING TO A 1992 AMERICAN BANKERS ASSOCIATION STUDY CONSUMERS ARE UNHAPPY WITH LOWER INTEREST RATES ON SAVINGS ACCOUNTS AND CERTIFICATES OF DEPOSIT AND CHANGES CAUSED BY BANK ACQUISITIONS AFFECTING SERVICE AND FEES THE BIG BANKS ARE MONEY MORTUARIES SAYS JOHN F SHEPHERD A 44YEAROLD COMPUTER SPECIALIST IN NEW ORLEANS HE TAKES EVERY STEP POSSIBLE AUTOMATIC TELLER MACHINES DIRECT DEPOSIT BANKING BY PHONE TO AVOID SETTING FOOT INSIDE A BANK I HAVE NO NEED TO GO TO THE BANK THAT DISCONTENT COMBINED WITH ENCROACHING COMPETITION HAS PROMPTED BANKS TO STEP UP THEIR MARKETING EFFORTS AGGRESSIVELY GOING AFTER NEW CUSTOMERS AND ADDING PERKS AND SERVICES TO RETAIN OLD ONES BRANCH OFFICES ARE TRYING TO BE FINANCIAL MARKETPLACES IN WHICH CUSTOMERS CAN BUY STOCKS MUTUAL FUNDS ANNUITIES OR OTHER INVESTMENT PRODUCTS MANY BANKS ARE TRAINING THEIR SALES PERSONNEL TO SELL SUCH PRODUCTS AND GIVE FINANCIAL PLANNING ADVICE FIRST UNION CORP BASED IN CHARLOTTE NC PLANS TO HAVE TWO TIERS OF SALESPEOPLE BY NEXT SUMMER THE FIRST WILL BE 225 SALESPEOPLE LICENSED TO SELL SECURITIES THE SECOND WILL BE 2600 CUSTOMER SERVICE REPRESENTATIVES WHO WILL BE TRAINED AND LICENSED TO SELL MUTUAL FUNDS AND ANNUITIES IN ADDITION BANKS ARE LAUNCHING NEW PRODUCTS OR REPACKAGING OLD ONES BOSTONBASED BAYBANKS INC TOOK A CUE FROM THE FASTFOOD INDUSTRY AND CREATED VALUE PACKAGES WHICH INCLUDE A COMBINATION OF CHECKING SAVINGS AND CREDIT SERVICES BUNDLED TOGETHER FOR A FLAT MONTHLY FEE THERE ARE SEPARATE PACKAGES FOR COLLEGE STUDENTS YOUNG ADULTS AND UPPERINCOME COUPLES WE'RE SELLING 35 TIMES MORE CREDIT CARDS INTO THE NEW CHECKING ACCOUNTS THAN WE DID WITHOUT THE VALUE PACKAGES SAYS LINDSEY LAWRENCE PRESIDENT OF BAYBANK SYSTEMS INC A SUBSIDIARY OF BAYBANKS ELECTRONIC BILLPAYER PROGRAMS ARE ALSO GAINING POPULARITY A CUSTOMER DIALS A NUMBER PUNCHES IN A SERIES OF CODES AND DOLLAR AMOUNTS FOR THE BILLS TO BE PAID AND THE BANK ELECTRONICALLY SENDS THE PAYMENTS TO THE APPROPRIATE MERCHANTS SEVERAL BANKS ARE ENHANCING DEBIT CARDS WHICH ACT LIKE CHECKS BUT LOOK LIKE ATM CARDS SO THEY CAN BE USED WHEREVER MASTERCARD OR VISA ARE ACCEPTED TO CONVINCE CUSTOMERS THAT A BANK IS IN FACT A PLACE FOR SHOPPING BANKERS ARE CREATING SIGNATURE LOOKS FOR THEIR BRANCHES THROUGH THE USE OF LIGHTING COLOR AND GRAPHICS AT A PREMIER BANCORP BRANCH IN NEW ORLEANS THERE ARE NO STODGY LAMPS COLD MARBLE COUNTERTOPS OR INSTITUTIONAL STEEL GRATING THE LOBBY DECORATED WITH SLEEK COLORFUL CONTEMPORARY FURNITURE AND TV MONITORS RESEMBLES A RETAILING SHOWROOM SERVICE DESKS ARE CIRCULAR TO ALLOW THE CUSTOMER AND BANK REPRESENTATIVE TO SIT SIDE BY SIDE COMPUTERS ARE PLACED SO CUSTOMERS CAN EASILY SEE THEIR ACCOUNT RECORDS ONCE SEATED CUSTOMERS IN SUCH SETTINGS MAY FIND THEMSELVES ANSWERING PROBING QUESTIONS AT ONE BANK ONE BANKING CENTER OPENING A CHECKING ACCOUNT BECOMES AN OPPORTUNITY TO SELL TRAINED ACCOUNT EXECUTIVES ASK CUSTOMERS ABOUT THEIR SHORTTERM CASH NEEDS AND LONGTERM PLANS BUYING A HOUSE ANYTIME SOON THEY INQUIRE CAN WE LOCK SOME OF THIS MONEY UP A LITTLE BIT LONGER WE USED TO JUST TAKE ORDERS AND THE CUSTOMER WOULD COME IN AND GO OUT WITH EXACTLY WHAT THEY ASKED FOR SAYS SHARON NEVIUS THE BANKING CENTER MANAGER TODAY MS NEVIUS'S STAFF IS MORE AKIN TO A CLOTHINGSTORE SALESPERSON SUGGESTING ACCESSORIES FOR AN OUTFIT IT'S NOT A SALESPERSON IN TERMS OF SOMEONE BEING PUSHY SHE EXPLAINS IT'S MAKING SURE THAT YOU'RE OFFERING SOMETHING THAT THEY MAY NEED AND NOT BE AWARE OF BAYBANKS IS USING THE TELEPHONE TO EXPAND BUSINESS IT MAILED CATALOGS TO MORE THAN ONE MILLION MASSACHUSETTS HOUSEHOLDS THROUGH WHICH CUSTOMERS CAN OPEN ACCOUNTS APPLY FOR CREDIT CARDS AND BUY MUTUAL FUNDS 24 HOURS A DAY WE SAW THE OPPORTUNITY TO CROSSSELL OUR PRODUCTS SAYS TRUMBELL CURTISS SENIOR VICE PRESIDENT WE WEREN'T CERTAIN IF SOMEONE WHO HAD A CHECKING ACCOUNT WITH US KNEW THAT WE OFFERED MUTUAL FUNDS AND THIS WAS A WAY TO PROMOTE THE AVAILABILITY OF OUR SERVICES BESIDES HE ADDS WE CAN DO AN AWFUL LOT OF BUSINESS FROM 10 PM TO 6 AM WHILE HE IS UNABLE TO PROVIDE FIGURES ON THE PROMOTION'S RESULTS MR CURTISS SAYS THE RESPONSE HAS JUSTIFIED THE COST FOR ALL OF THEIR EAGERNESS TO MARKET THEMSELVES TO CONSUMERS MANY BANKS WILL LIKELY FIND IT NEARLY IMPOSSIBLE TO CONVERT THEIR EXISTING CULTURE INTO A SALES CULTURE SAYS L BIFF MOTLEY EXECUTIVE VICE PRESIDENT OF PREMIER BANCORP AND PRESIDENT OF THE BANK MARKETING ASSOCIATION AFTER ALL MANY BANKERS HE SAYS ENTERED THE PROFESSION BECAUSE OF THEIR DISTASTE FOR SALES OTHER INDUSTRY OBSERVERS SAY THAT BANKS WILL HAVE TO DEVELOP A BRAND IDENTITY TO MAKE THEIR PRODUCTS SEEM TANGIBLE SOME BANKS LET MAILINGS OR MACHINES DO THE WORK FOR THEM IN DAYTON OHIO HUNTINGTON NATIONAL BANK A UNIT OF HUNTINGTON BANCSHARES INC IS TESTING A PROGRAM IN WHICH CUSTOMERS GET FREE ACCESS TO AUTOMATIC TELLER MACHINES BUT ARE CHARGED 1 A TRANSACTION IF THEY USE A HUMAN TELLER CONSUMERS ARE DRIVING THESE CHANGES SAYS WILLIAM M RANDLE SENIOR VICE PRESIDENT MARKETING THEY DON'T FIND GOING TO A BRANCH PARTICULARLY REWARDING NO MATTER HOW HARD A BANK TRIES MR RANDLE PREDICTS 20 TO 30 OF ALL RETAIL BANKING WILL BE PERFORMED OVER TELEPHONE LINES WITHIN THE NEXT FIVE YEARS INDEED BY YEAR END HUNTINGTON PLANS TO HAVE VIDEO BANKING MACHINES IN ITS SUPERMARKET BANK BRANCHES THEY WON'T DISPENSE CASH BUT WILL ALLOW CUSTOMERS TO OPEN ACCOUNTS APPLY FOR LOANS TRANSFER FUNDS AND SPEAK WITH A BANKING REPRESENTATIVE 24 HOURS A DAY VIA MACHINE WHAT WE'RE ATTEMPTING TO DO MR RANDLE EXPLAINS IS REDEFINE CONVENIENCE ON THE CUSTOMER'S TERMS NOT ON THE BANK'S TERMS 9308300051 930830 INTERNATIONAL GAZA JERICHO TO GET PRIORITY IN MIDEAST TALKS PALESTINIANS WOULD RECEIVE SOME SELFRULE IN AREAS CITED IN DRAFT ACCORD BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL TEL AVIV A NEW PLAN THAT WOULD GIVE PALESTINIANS IMMEDIATE AUTHORITY OVER THE GAZA STRIP AND THE WEST BANK CITY OF JERICHO WILL BE AT THE TOP OF THE AGENDA WHEN ISRAELI AND PALESTINIAN OFFICIALS SIT DOWN AT THE NEGOTIATING TABLE THIS WEEK AS PART OF THE AUTONOMY PACKAGE ISRAELI RADIO REPORTED ISRAEL AND THE PALESTINIAN LIBERATION ORGANIZATION ARE CONSIDERING RECOGNITION OF ONE ANOTHER HOWEVER HUGE GAPS STILL REMAIN BETWEEN THE ISRAELI AND PALESTINIAN POSITIONS AND WITHIN ISRAEL THE RIGHT WING IS GEARING UP TO OPPOSE ANY DEAL ISRAELI PRESS REPORTS SAID OVER THE WEEKEND THAT A DRAFT OF AN AGREEMENT OF PRINCIPLES CONCERNING THE GAZA AND JERICHO FIRST OPTION AS THE IDEA IS BEING CALLED WAS REACHED DURING SECRET TALKS IN NORWAY BETWEEN ISRAELI FOREIGN MINISTER SHIMON PERES AND A HIGHRANKING PLO OFFICIAL UNDER THE AGREEMENT A PALESTINIAN SELFRULING AUTHORITY WOULD TAKE IMMEDIATE CONTROL OVER EDUCATION HEALTH AND CRIMINAL JUSTICE IN JERICHO AND GAZA A PALESTINIAN POLICE FORCE WOULD DEAL WITH INTERNAL SECURITY MATTERS BUT WOULDN'T HAVE CONTROL OVER JEWISH SETTLEMENTS OR ISRAELI CITIZENS TRAVELING IN THE OCCUPIED WEST BANK AND GAZA STRIP ISRAEL WOULD CONTINUE TO BE RESPONSIBLE FOR SECURITY OVER THE ENTIRE AREA BUT THE ARMY WOULD BE PULLED BACK FROM PALESTINIAN POPULATION CENTERS ISRAEL ALSO WOULD STILL CONTROL SECURITY OVER THE BRIDGES THAT LINK THE WEST BANK TO JORDAN THE DRAFT AGREEMENT STILL HAS TO BE APPROVED BY THE ISRAELI CABINET WHICH IS MEETING TONIGHT TO DISCUSS THE PROPOSAL AND BY THE PALESTINIAN DELEGATION TO THE MIDEAST PEACE TALKS WHOSE LATEST ROUND IS SET TO BEGIN IN WASHINGTON TOMORROW THE ORIGINS OF THE IDEA DATE BACK TO JUNE WHEN ISRAELI OFFICIALS BEGAN CALLING FOR A GAZA FIRST SOLUTION AS A WAY OF RESTARTING THE STALLED PEACE NEGOTIATIONS MOST ISRAELIS FAVOR AN IMMEDIATE WITHDRAWAL FROM THE IMPOVERISHED GAZA STRIP VIEWING THE AREA AS STRATEGICALLY UNIMPORTANT AND A CENTER OF ANTIISRAELI VIOLENCE PLO CHIEF YASIR ARAFAT PUBLICLY EMBRACED THE IDEA AS LONG AS IT ALSO INCLUDED ONE CENTER ON THE WEST BANK AND SUGGESTED JERICHO A QUIET TOWN OF 7500 RESIDENTS THAT SITS AT THE CROSSROADS FOR ISRAEL JORDAN AND THE WEST BANK ABOUT A 40MINUTE DRIVE FROM JERUSALEM DESPITE THE TANTALIZING PROSPECT THAT A DEAL MAY BE WITHIN REACH PALESTINIAN AND ISRAELI DESCRIPTIONS IN THE MEDIA OF WHAT GAZA AND JERICHO FIRST ENTAILS DIFFER QUITE SIGNIFICANTLY THE PALESTINIANS SAY THE DEAL MUST INCLUDE FULL ISRAELI WITHDRAWAL FROM GAZA AND JERICHO A TRANSFER OF AUTHORITY OVER ALL AREAS OF LIFE IN THE TWO CITIES INCLUDING WATER ELECTRICITY AND SECURITY AND THE PUBLIC ANNOUNCEMENT OF A TIMETABLE FOR ISRAELI WITHDRAWAL FROM THE REST OF THE WEST BANK ALL THINGS THE ISRAELIS CLAIM TO HAVE REJECTED PALESTINIANS HAVE VOICED FEAR THAT THE ISRAELIS WILL STOP AT GAZA AND JERICHO AND WON'T MAKE FURTHER CONCESSIONS THE REAL TEST WILL BE IN WASHINGTON WHERE I FEAR IT WILL BECOME CLEAR THAT EVERYONE IS SAYING SOMETHING ELSE SAID YIGAL CARMON A FORMER ADVISER TO THE PRIME MINISTER ON COUNTERTERRORISM AND A MEMBER OF THE ISRAELI DELEGATION TO THE PEACE TALKS UNDER THE FORMER LIKUD GOVERNMENT IN WASHINGTON A SENIOR US OFFICIAL EXPRESSED OPTIMISM OVER THE PROSPECTS FOR PROGRESS WHEN THE TALKS RESUME TOMORROW BUT AGREED THAT MANY DETAILS OF THE PLAN STILL NEED TO BE HAMMERED OUT THESE ARE PRETTY DELICATE ISSUES THE OFFICIAL SAID THEY STILL HAVE A WAY TO GO THE OFFICIAL ALSO CONFIRMED THAT FOREIGN MINISTER PERES MET FOR FOUR HOURS IN SOUTHERN CALIFORNIA FRIDAY WITH SECRETARY OF STATE WARREN CHRISTOPHER TO DISCUSS THE PLAN IN ISRAEL THE OPPOSITION LIKUD PARTY IS SPONSORING A NOCONFIDENCE MOTION IN PARLIAMENT TODAY BENJAMIN NETANYAHU LEADER OF THE LIKUD SAID THE GOVERNMENT IS HANDING THE PLO ON A SILVER PLATTER A PALESTINIAN STATE WHICH WILL ENDANGER ISRAEL'S EXISTENCE NONETHELESS AFTER TWO YEARS OF NEGOTIATIONS THAT HAVE SEEMINGLY GONE NOWHERE THE TIMING MAY FINALLY BE RIGHT FOR MR ARAFAT REELING FROM CHALLENGES TO HIS LEADERSHIP OF THE PLO IN THE WAKE OF A FINANCIAL CRISIS IN THE ORGANIZATION A DEAL OVER JERICHO AND GAZA WOULD BE A WAY OF IMPOSING PLO RULE IN THE OCCUPIED TERRITORIES FROM THE START AND COULD BE PRESENTED TO THE PALESTINIAN PUBLIC AS A SPRINGBOARD TO A PALESTINIAN STATE FOR THE ISRAELIS A DEAL WITH THE PALESTINIANS MIGHT OPEN THE WAY TO A PEACE TREATY WITH THE SYRIANS OVER THE GOLAN HEIGHTS AN AGREEMENT WITH THE PALESTINIANS WILL GIVE THE SYRIANS THE FIG LEAF THEY NEED TO MAKE A DEAL OVER THE GOLAN SAID MICHAEL OREN HEAD OF THE AMERICAN JEWISH COMMITTEE'S JERUSALEM OFFICE AND CREATE A REAL POSSIBILITY THAT ALL THE OTHER ARAB COUNTRIES WILL FOLLOW 9308300050 930830 SL INDUSTRIES INC SEEKS TO EXPAND INTO NEW FIELDS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL MT LAUREL NJ WITH A BITTER PROXY BATTLE BEHIND IT SL INDUSTRIES INC IS TRYING TO RESHAPE ITSELF TO FIND NEW OPPORTUNITIES BEYOND ITS TRADITIONAL DEFENSE AND AEROSPACE MARKETS OWEN FARREN CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID SL INDUSTRIES IS GROWING THROUGH THE DEVELOPMENT OF NEW PRODUCTS AND ITS RECENT ACQUISITION OF CONDOR DC POWER SUPPLIES INC MR FARREN SAID IN AN INTERVIEW THAT HE ESTIMATES EARNINGS FOR THE FISCAL FOURTH QUARTER ENDED JULY 31 WERE MORE THAN 600000 OR ABOUT SEVEN CENTS A SHARE WITH REVENUE OF ABOUT 18 MILLION IN THE YEARAGO QUARTER NET INCOME WAS 413000 OR SIX CENTS A SHARE ON REVENUE OF 123 MILLION THE COMPANY PLANS TO REPORT ITS EARNINGS IN LATE SEPTEMBER THE PROXY BATTLE LAST YEAR CAUSED A LOT OF DISTRACTION AND MADE IT HARD TO GET ON TRACK MR FARREN SAID BUT NOW WE ARE BRINGING IN THE RIGHT PEOPLE AND MOVING IN THE RIGHT DIRECTION MR FARREN ACKNOWLEDGED THAT A GREAT DEAL OF THE COMPANY'S REVENUE AND EARNINGS GROWTH STEMS FROM ITS ACQUISITION OF CONDOR A MAKER OF POWERSUPPLY SYSTEMS FOR THE MEDICAL INDUSTRY AND OTHER MARKETS CONDOR HAD 14 MILLION IN ANNUAL REVENUE WHEN IT WAS PURCHASED BY SL ALONG WITH ITS ACQUISITION OF CONDOR SL ALSO HAS STARTED FOCUSING MORE RESOURCES ON PRODUCT DEVELOPMENT WITH FISCAL 1993 REVENUE ESTIMATED AT 58 MILLION THE COMPANY DEVOTED ABOUT 1 MILLION TO DEVELOPING PRODUCTS IN THE PAST THE COMPANY MADE PRODUCTS BASED ON ORDERS FROM GOVERNMENT CONTRACTORS WE KNEW A COUPLE OF YEARS AGO THAT THE DEFENSE BUSINESS WOULD BE IN RAPID DECLINE MR FARREN SAID SO WE HAD TO MOVE AGGRESSIVELY OUT OF THAT AREA AND CREATE OUR OWN PROPRIETARY PRODUCTS WE HAVE NOW BECOME A PROBLEM SOLVER AND SOLUTION CREATOR RATHER THAN A BUILDFROMORDER COMPANY BUT SL'S DIVERSIFICATION EFFORTS HAVEN'T PLEASED EVERYONE LAST YEAR A BITTER PROXY FIGHT PLACED THREE OUTSIDE DIRECTORS ON THE COMPANY'S SEVENMEMBER BOARD ACCORDING TO MR FARREN THE PROXY FIGHT COST THE COMPANY MORE THAN 800000 BEFORE TAXES STILL THE MIXED SLATE ON THE BOARD APPEARS TO HAVE FOUND SOME PEACE MR FARREN 42 YEARS OLD SAID THAT MANAGEMENT SUPPORTS THE THREE OUTSIDE DIRECTORS I THINK EVERYONE WANTS THE SAME THING WHICH IS TO MAKE THE BUSINESS MORE VALUABLE SAID GEORGE HORNIG ONE OF THE DISSIDENT DIRECTORS SOME OF THE DIFFERENCES STEM FROM THE PACE AT WHICH THE BUSINESS IS CHANGING BUT RIGHT NOW WE ARE MOSTLY IN AGREEMENT MOVING FORWARD 9308300049 930830 BUSINESS BRIEF ACC CORP CANADIAN UNIT ENTERS PACT TO MARKET PHONE SERVICE ACC CORP ROCHESTER NY SAID ITS CANADIAN SUBSIDIARY ACC TELENTERPRISES LTD SIGNED AN AGREEMENT WITH THE HOMESERVICE CLUB OF CANADA WHICH IS A BUYING MEMBERSHIP DISCOUNT GROUP TO JOINTLY MARKET THE ACC UNIT'S LONGDISTANCE TELEPHONE SERVICE A MOVE THAT COULD INCREASE ACC TELENTERPRISES' ANNUAL REVENUE BY 10 MILLION THE SERVICE WOULD BE MARKETED THROUGH HOMESERVICE CLUB'S AFFINITY SERVICE PROGRAM A LONGDISTANCE DISCOUNT SERVICE TO REACH ABOUT 40000 MEMBERS IN TORONTO THE AGREEMENT COULD GENERATE 50 MILLION IN REVENUE OVER THE NEXT FIVE YEARS FOR ACC TELENTERPRISES THE PARENT SAID LAST YEAR ACC TELENTERPRISES' REVENUE WAS 54 MILLION THE UNIT IS PROJECTING REVENUE OF 85 MILLION THIS YEAR ACC CORP IS A TELECOMMUNICATIONS COMPANY PROVIDING LONGDISTANCE SERVICE 9308300048 930830 BUSINESS BRIEF HORN & HARDART CO COMPANY PAYS 7 MILLION FOR COMPANY STORE ASSETS HORN & HARDART CO WEEHAWKEN NJ SAID IT PURCHASED SUBSTANTIALLY ALL OF THE ASSETS OF COMPANY STORE INC A DIRECT MARKETER OF DOWN COMFORTERS OTHER DOWN PRODUCTS AND HOME FURNISHINGS THE PURCHASE APPROVED BY US BANKRUPTCY COURT IN WISCONSIN INCLUDES CUSTOMER LISTS A TELEMARKETING FACILITY AN OFFICE BUILDING AND A MANUFACTURING FACILITY HORN & HARDART SAID IT PAID 7 MILLION INCLUDING 516824 COMMON SHARES AND 46 MILLION OF MORTGAGES AND NOTES ISSUED BY SUBSIDIARIES FOR THE LAST FISCAL YEAR COMPANY STORE HAD REVENUE OF 84 MILLION HORN & HARDART SAID THE PURCHASE COMPLEMENTS ITS DOMESTICATIONS HOME FURNISHINGS CATALOG THE PURCHASE ALSO WILL ADD THREE MILLION NAMES TO THE 16 MILLION NAMES ON THE MAILING LIST OF HORN & HARDART'S OPERATING SUBSIDIDARY HANOVER DIRECT 9308300047 930830 STOCK MARKET DRIFTS IN TAIWAN AFTER BIG SURGE POLITICS AND TIGHT MONEY EXPECTED TO KILL HOPES OF EARLY TURNAROUND BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI EARLY THIS YEAR THE TAIWAN STOCK MARKET STAGED A SPECTACULAR RALLY THAT LEFT MANY INVESTORS EAGERLY ANTICIPATING WHAT OTHER GAINS 1993 MIGHT HOLD IN STORE BUT SINCE THAT SKYROCKETING RISE THERE'S BEEN NO REPEAT PERFORMANCE INSTEAD THE MARKET HAS SLUMBERED DRIFTING DOWN INTO A NARROW RANGE FAR BELOW ITS HIGHS FOR A VARIETY OF REASONS INCLUDING TIGHT MONEY AND POLITICAL UNCERTAINTY THERE'S LITTLE EXPECTATION THAT THE MARKET WILL TAKE A SIGNIFICANT TURN FOR THE BETTER BEFORE YEAR END IT'S QUITE LIKELY THAT FOR THE NEXT MONTH OR TWO THE MARKET IS GOING TO BE EXTREMELY BORING SAYS JAMES HSU PRESIDENT OF FUBON INVESTMENT SERVICES CO AN INVESTMENTTRUST COMPANY WITH LOCAL ELECTIONS COMING UP IN NOVEMBER YOU'RE NOT GOING TO STIMULATE THE MARKET TO ANY GREAT EXTENT EXCEPT IF THE CENTRAL BANK TAKES MEASURES TO CUT INTEREST RATES THAT'S THE ONLY ACE IN THE HOLE WE HAVE FROM A LOW FOR THE YEAR ON JAN 7 OF 313556 THE TAIWAN MARKET'S WEIGHTED INDEX SOARED TO A PEAK OF 501328 ON APRIL 7 MOST OF THAT RISE OCCURRED BETWEEN THE END OF JANUARY AND EARLY MARCH MANY INVESTORS WERE CAUGHT NAPPING AND THREW THEIR MONEY INTO THE MARKET ONLY TOWARD THE END OF THE SURGE FOR THE PAST SEVERAL MONTHS THE MARKET HAS MOVED BETWEEN 3900 AND 4100 CLOSING SATURDAY AT 392775 UP 779 POINTS FROM FRIDAY AS A RESULT SAYS DANNY CHAN PRESIDENT OF INTERNATIONAL INVESTMENT TRUST CO AN INVESTMENTTRUST COMPANY THAT MANAGES THE ROC TAIWAN FUND ON THE NEW YORK STOCK EXCHANGE MANY INVESTORS WHO ALSO HAVE MISSED OUT ON EARLIER RALLIES ARE FEELING JADED ABOUT THE MARKET ONCE AGAIN THEY GOT BURNT EARLY THIS YEAR WHEN THE MARKET WAS RAMPED UP TO 5000 BY THE BIG INVESTORS MR CHAN SAYS THERE'S VERY LITTLE SENTIMENT LEFT THE MARKET HASN'T BEEN HELPED BY THE CONTINUING POLITICAL UNCERTAINTY BESETTING THE GOVERNMENT AND RULING KUOMINTANG A CABINET RESHUFFLE IN FEBRUARY HELPED FUEL THE RALLY BUT SINCE THEN THE GOVERNMENT HAS SUFFERED A SERIES OF LEGISLATIVE SETBACKS AND THE PARTY HAS BEEN ROCKED BY A SPLIT INVESTORS HAD BEEN NERVOUS ABOUT THE KMT'S 14TH PARTY CONGRESS THAT GATHERING CONCLUDED LAST WEEK WITH A LEADERSHIP SHUFFLE THAT CEMENTED PRESIDENT LEE TENGHUI'S HOLD OVER THE PARTY BUT THE SURFACE CALM HAS HAD LITTLE IMPACT ON THE MARKET THE 14TH PARTY CONGRESS DIDN'T SEEM TO PRODUCE ANY SORT OF A POSITIVE RESULT MR CHAN SAYS ANALYSTS SAY ALL EYES ALREADY ARE ON THE NOV 27 ELECTIONS FOR COUNTY MAGISTRACIES AS THE KMT IS STILL WIDELY EXPECTED TO INCUR SETBACKS IN THE VOTING ANALYSTS SAY THERE WAS LITTLE REASON TO CELEBRATE ANYTHING ABOUT THE PARTY CONGRESS MUCH MORE IMPORTANT TO THE MARKET THAN POLITICS IS CENTRAL BANK POLICY INTEREST RATES IN TAIWAN THIS YEAR HAVE BEEN HELD HIGHER THAN IN OTHER COUNTRIES AS THE MONETARY AUTHORITIES HAVE SOUGHT TO STEM A RAPID OUTFLOW OF CAPITAL INTO CHINA AND OTHER FINANCIAL MARKETS IN RECENT WEEKS THE CENTRAL BANK HAS BEGUN TO LOOSEN UP ON SHORTTERM RATES BUT BANK LENDING RATES HAVE COME DOWN ONLY MARGINALLY AND LONGTERM RATES REMAIN HIGH AROUND 8 FOR PRIME CORPORATE BORROWERS WITH CHINA'S ECONOMY FACING SHOCK THERAPY FROM BEIJING HOWEVER ANALYSTS SAY TAIWAN'S CENTRAL BANK NOW HAS THE ROOM TO EASE BACK MORE ON THE REINS WITH THE CRACKDOWN ON REALESTATE SPECULATION IN CHINA AND THE REDUCTION IN CREDIT AVAILABILITY THERE ON TOP OF THE NEW VOLATILITY IN THE RENMINBI YOU CAN IMAGINE THAT TAIWAN'S CAPITAL OUTFLOW CERTAINLY MUST HAVE SLOWED DOWN SAYS PETER KURZ MANAGING DIRECTOR OF BARING SECURITIES TAIWAN LTD THE CENTRAL BANK IS NOW TAKING ADVANTAGE OF THAT SLOWDOWN TO START LOOSENING DOMESTICALLY MR KURZ SAYS THAT WHILE THE CENTRAL BANK ALWAYS IS CONCERNED ABOUT REINFLATING THE BUBBLE ECONOMY BY LOOSENING TOO MUCH RECENT ECONOMIC TRENDS WOULD INDICATE THERE IS ROOM FOR A MORELIBERAL MONETARY POLICY LAST WEEK THE GOVERNMENT LOWERED ITS ECONOMICGROWTH FORECAST FOR THE CURRENT YEAR TO 608 FROM 633 MR KURZ SAYS THAT A LOOSENING BY THE CENTRAL BANK WOULD BE MORE LIKELY TO STIMULATE INVESTMENT THAN CONSUMER SPENDING AT THIS STAGE THERE IS LITTLE CONCERN THAT A LOOSENING BY THE CENTRAL BANK WILL REIGNITE INFLATION CURRENTLY RUNNING AT AN ANNUAL RATE OF ABOUT 35 MR KURZ ADDS BUT IT WILL IN FACT STIMULATE THE ECONOMY IT'S THE RIGHT THING TO DO WHILE EASIER MONEY MAY LIFT THE MARKET A BIT ANALYSTS SAY IT WON'T HAVE AN IMMEDIATE IMPACT ON EARNINGS WITH THE EXCEPTION OF ELECTRONICS COMPANIES WHICH ARE HAVING A SALES REBOUND THIS YEAR NO SECTOR IN THE MARKET HAS A PARTICULARLY EXCITING OUTLOOK BUT FOREIGN INVESTORS HAVE BEEN FINDING STOCKS SELLING AT ATTRACTIVE PRICES EACH TIME THE MARKET DIPS AND THEY CONTINUE TO BUY SELECTIVELY 9308300046 930830 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR AUG 30 1993 ECONOMIC EXPANSION IS STEADILY IMPROVING AND IS HEADED TOWARD ITS BEST PERFORMANCE IN FOUR YEARS EACH MONTH THROUGH JULY AND THE PACE PROBABLY PICKED UP IN AUGUST SAID THOMAS CARPENTER CHIEF ECONOMIST AT ASB CAPITAL MANAGEMENT IN WASHINGTON PROBABLY WILL SHOW AN INCREASE OF 200000 PAYROLL JOBS IN AUGUST CONSIDERABLY HIGHER THAN THE WALL STREET CONSENSUS OF 150000 FIRSTTIME CLAIMS FOR UNEMPLOYMENT BENEFITS UNEMPLOYMENT CLAIMS IT'S A GOOD SIGN FOR THE EMPLOYMENT SECTOR HE ADDED CURRENT RATE IT WILL MARK THE BEST PERFORMANCE SINCE 1988 WHEN IT AVERAGED 265000 A MONTH INCREASE IN JULY CONTRACTS FOLLOWING AN 11 BOOST IN JUNE ARE NOW AT A 22YEAR LOW THEY'RE STEPPING UP TO THE PLATE TO TAKE A SWING AT A NEWHOME PURCHASE HE SAID 9308300045 930830 BUSINESS BRIEF NS GROUP INC NEWPORT STEEL CORP RESTARTS OPERATIONS AFTER SHUTDOW NS GROUP INC'S NEWPORT STEEL CORP SAID IT RESTARTED ITS MELT SHOP OPERATIONS AFTER SHUTTING THEM DOWN FOR THE SECOND TIME SINCE MAY BOTH SHUTDOWNS OCCURRED AFTER A LOWLEVEL RADIOACTIVE SUBSTANCE WAS DETECTED THE NEWPORT KY COMPANY SAID THE SECOND SHUTDOWN WHICH LASTED 19 DAYS BEGAN AUG 4 AFTER MONITORS DETECTED A RADIOACTIVE SUBSTANCE IN ITS BAGHOUSE DUST A BYPRODUCT OF THE MELTING PROCESS OPERATIONS RESUMED AUG 23 THE CONTAMINATED DUST POSED NO SAFETY THREAT THE COMPANY SAID ALTHOUGH NS GROUP COULDN'T CITE THE FINANCIAL IMPACT OF THE LATEST SHUTDOWN THE COMPANY SAID THIS INSTANCE WAS ALMOST IDENTICAL TO A 23DAY ONE IN MAY FOR WHICH NEWPORT TOOK A 25 MILLION CHARGE NS GROUP SAID IT EXPECTED TO RECOVER SOME COSTS FOR THE SECOND SHUTDOWN FROM INSURANCE IT PICKED UP AFTER THE FIRST SHUTDOWN 9308300044 930812 REVIEW & OUTLOOK EDITORIAL THE PRESIDENT AND THE BOY SCOUTS EVERY FOUR YEARS THE BOY SCOUTS OF AMERICA HOLD A JAMBOREE TRADITIONALLY CAPPED BY A VISIT FROM THE PRESIDENT OF THE UNITED STATES OR HIS STANDIN AND MOST PRESIDENTS FROM FRANKLIN ROOSEVELT ON HAVE MADE IT THEIR BUSINESS TO FIND TIME TO SPEAK TO THE YOUNG MEMBERS OF THIS NOW VENERABLE INSTITUTION NOT THIS TIME THE BOY SCOUTS IS AN ORGANIZATION NOW CONSIDERED CONTROVERSIAL IN THE CIRCLES THAT MR CLINTON TRAVELS IN BECAUSE OF ITS BAN ON HOMOSEXUAL TROOP LEADERS THIS WEEK THE SCOUTS WEREN'T PRIVILEGED TO RECEIVE A VISIT FROM THE PRESIDENT OR HIS REPRESENTATIVE THE WHITE HOUSE'S EXPLANATION SCOUTS' HONOR WAS THAT SCHEDULING PROBLEMS PRECLUDED MR CLINTON'S ATTENDANCE AT THE EVENT HELD IN FORT AP HILL VIRGINIA THAT LEFT THE NATIONAL SCOUT JAMBOREE WITH THE PRESIDENT'S APPOINTED STANDIN INTERIOR SECRETARY BRUCE BABBITT LATE MONDAY MR BABBITT ALSO CANCELED SPOKESMEN FOR THE BOY SCOUTS OF AMERICA HAVE COURTEOUSLY DECLINED TO MAKE ANY NEGATIVE PUBLIC COMMENT ABOUT THE SHABBY TREATMENT ACCORDED THEM MESSRS CLINTON AND BABBITT AND THEIR STAFFS COULD PROFIT BY THE EXAMPLE SET BY THE SCOUTS AMONG OTHER REQUIREMENTS THE ORGANIZATION'S RULES STATE A SCOUT IS POLITE TO EVERYONE REGARDLESS OF AGE OR POSITION SINCE THE POSITION OF THE SCOUTS VIS A VIS HOMOSEXUALS ISN'T VERY POPULAR AMONG POLITICALLY PROGRESSIVE FOLK THESE DAYS MR CLINTON'S ASSISTANT HOUSING SECRETARY ROBERTA ACHTENBERG FOUGHT UNITED WAY FUNDING FOR THE SCOUTS WHILE IN SAN FRANCISCO THERE'S GOOD REASON TO CONCLUDE THAT THE ADMINISTRATION DECIDED IT WOULD BE BETTER TO SKIP THE JAMBOREE ALTOGETHER RONALD REAGAN RECOVERING FROM COLON SURGERY DURING HIS PRESIDENCY SENT HIS WIFE TO SPEAK IN HIS PLACE THE SCOUTS OF COURSE COULD HARDLY EXPECT THE SAME FROM THE CURRENT PRESIDENT'S WIFE NOW BUSY FORMULATING POLICY EVEN SO THERE'S NO DOUBT THAT WHEN THE ADMINISTRATION WANTS TO PAY ITS RESPECTS BY SENDING A REPRESENTATIVE THEY CAN FIND ONE THE PRESIDENT DID IN FEBRUARY MEET A DELEGATION OF SCOUTS AT THE WHITE HOUSE BUT THIS NEEDLESS TO SAY IS A VERY DIFFERENT MATTER FROM A PUBLIC APPEARANCE HONORING THE SCOUTS THE BOY SCOUTS BORN EARLY IN THIS CENTURY WAS MODELED ON A VARIETY OF YOUTH GROUPS HERE AND ABROAD IT WAS CONCEIVED BY INTERESTED CITIZENS WHO HAD CONCLUDED THAT THERE WERE SOME KINDS OF EDUCATION CRUCIAL TO THE DEVELOPMENT OF CHILDREN THAT SCHOOLS FAILED TO PROVIDE IT'S HARD TO IMAGINE WHAT THOSE 19TH CENTURY IDEALISTS WOULD THINK OF TODAY'S SCHOOLS WHICH MOST OF THE TIME FAIL TO PROVIDE EVEN THE BASICS OF EDUCATION THAT THE BRAINCHILD OF THOSE IDEALISTS SURVIVES TODAY ISN'T SURPRISING THE FOUNDERS OF THE SCOUTS KNEW A THING OR TWO APPARENTLY ABOUT YOUNG PEOPLEABOUT ABOVE ALL THE INEXHAUSTIBLE ATTRACTIONS OF CHALLENGE AND OF HIGH STANDARDS AND THE PURSUIT OF MERIT UNDER THE CURRENT CIRCUMSTANCES IT IS CAUSE FOR CELEBRATION THAT YOUNG PEOPLE TODAY ARE DRAWN TO AN ORGANIZATION LIKE THE SCOUTS WHOSE LAWS CALL FOR ADHERENCE TO VALUES NOW VIEWED AS SOMEWHAT OLD FASHIONEDVALUES SUCH AS COURTESY TRUSTWORTHINESS REVERENCE LOYALTY AND WONDERFULLY ENOUGH GOOD CHEER AT A TIME WHEN EDUCATORS ARE BUSY CONCEIVING OF NEWER AND FASTER WAYS TO DISTRIBUTE CONDOMS TO SCHOOLCHILDREN AN ORGANIZATION WHOSE OATH STILL PLEDGES YOUNG MEMBERS TO KEEP PHYSICALLY STRONG MENTALLY AWAKE AND MORALLY STRAIGHT WILL SEEM OF COURSE OUT OF DATE TO SOME FOR OUR MONEY AND WE'D BET THAT OF A LOT OF OTHER PEOPLE THE SCOUT OATH REPRESENTS INFINITELY SANER RULES FOR SURVIVAL THAN ALL THE DEMONSTRATIONS NOW GOING ON IN GRADE SCHOOLS SHOWING HOW TO PUT CONDOMS ON BANANAS THE CLINTON WHITE HOUSE MAY HAVE CALCULATED THAT IT WAS FAR LESS RISKY TO DODGE THE BOY SCOUTS' QUADRENNIAL JAMBOREE THAN TO ALIENATE A VOCAL POLITICAL INTEREST GROUP ALREADY ANGRY OVER MRCLINTON'S POLICY ON HOMOSEXUALS IN THE MILITARY IF SO MR CLINTON AND HIS STRATEGISTS MIGHT BE WELL ADVISED TO FOLLOW THE FAMOUS BOY SCOUT MOTTO BE PREPARED FOR THE SNUB TO THE SCOUTS IS ONE OF THOSE SMALL ACTS OF POLITICAL EXPEDIENCY THAT TELL WORLDS ABOUT AN ADMINISTRATION AND IT MAY YET COME BACK TO HAUNT THIS ONE SEE RELATED LETTERS LETTERS TO THE EDITOR SCOUTS SHOULD DO THE HONORABLE THING WSJ AUG 30 1993 9308120092 YY93 MM08 9308300043 930830 BUSINESS BRIEF MIRAGE RESORTS INC CHAIRMAN AGAIN SELLS STOCK REDUCING HIS STAKE TO 181 STEPHEN A WYNN CHAIRMAN AND PRESIDENT OF MIRAGE RESORTS INC TRIMMED HIS POSITION IN THE LAS VEGAS CASINO COMPANY FOR THE THIRD TIME THIS MONTH CUTTING HIS STAKE TO 181 IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION MR WYNN SAID THAT ON AUG 25 HE SOLD 440000 COMMON SHARES OF MIRAGE FOR 2365 MILLION OR 5375 EACH MR WYNN THE FILING SAID NOW HOLDS 592 MILLION MIRAGE SHARES AS PREVIOUSLY REPORTED MR WYNN SAID IN A FILING ON AUG 10 THAT HE SOLD 200000 SHARES ON AUG 4 AND 250000 SHARES ON AUG 5 AT 47 A SHARE TO REDUCE HIS STAKE TO 195 IN AN INTERVIEW MR WYNN ATTRIBUTED THE LATEST SALE TO ESTATE PLANNING AND DIVERSIFICATION OF SOME OF HIS PERSONAL WEALTH PART OF THE FUNDS RAISED THROUGH THE RECENT STOCK SALES ARE BEING USED TO BUILD A NEW HOUSE FOR HIS FAMILY WITH INCREASED SECURITY FOLLOWING THE JULY KIDNAPPING OF HIS OLDEST DAUGHTER KEVIN 9308300042 930830 INTERNATIONAL BRIEF BROKEN HILL PROPRIETARY CO AUSTRALIAN COMPANY TO HELP RUSSIANS EVALUATE OIL FIELD BROKEN HILL PROPRIETARY CO MELBOURNE AUSTRALIA SAID IT ENTERED INTO A JOINT VENTURE TO EVALUATE A POTENTIAL OIL FIELD OFF THE RUSSIAN COAST BHP SAID ITS HAMILTON OIL CO UNIT WILL JOIN BHP AND TWO RUSSIAN COMPANIES IN EVALUATING THE PRIRAZLOMNOYE FIELD LOCATED 50 KILOMETERS OFFSHORE IN THE PECHORA SEA A PART OF THE BARENTS SEA BHP IS A STEEL MINERALS AND PETROLEUM CONCERN THE COMPANY SAID THE AGREEMENT WITH RUSSIAN JOINT STOCK SOCIETIES ROSSHELF AND GAZPROM PROVIDES FOR BHP AND HAMILTON TO HELP DRILL THE PRIRAZLOMNOYE3 APPRAISAL WELL THE TWO AUSTRALIAN COMPANIES ALSO WILL CARRY OUT FURTHER TECHNICAL EVALUATION AND DEVELOPMENT OF THE OFFSHORE FIELD BHP SAID THE PRIRAZLOMNOYE FIELD WAS DISCOVERED IN 1989 THE RUSSIAN GOVERNMENT ISSUED A LICENSE TO DEVELOP THE FIELD TO THE TWO SOCIETIES EARLIER THIS YEAR THE COMPANIES HAVE YET TO PRODUCE ESTIMATES OF POTENTIAL OIL RESERVES 9308300041 930830 TECHNOLOGY BRIEF INTERPHASE CORP COMPANY POSTS A 36 MILLION LOSS FOR FISCAL THIRD PERIOD INTERPHASE CORP SAID THAT POOR SALES IN EUROPE AND SEVERAL ONETIME CHARGES RESULTED IN A NET LOSS OF 36 MILLION OR 82 CENTS A SHARE FOR ITS THIRD QUARTER ENDED JULY 31 IN THE YEAREARLIER PERIOD THE DALLASBASED COMPUTER NETWORKING COMPANY POSTED NET INCOME OF 548000 OR 12 CENTS A SHARE REVENUE DROPPED 40 TO 74 MILLION FROM 124 MILLION INTERPHASE SAID THE RESULTS INCLUDE A 12 MILLION CHARGE FOR SEVERANCE PAY AND OTHER EXPENSES RELATED TO LAYOFFS ANNOUNCED IN JUNE AND A 13 MILLION PROVISION FOR LOSSES RELATED TO A FIZZLED JOINT DEVELOPMENT LICENSING AND MARKETING AGREEMENT WITH ANOTHER COMPANY FOR ITS FIRST NINE MONTHS THE COMPANY REPORTED A NET LOSS OF 33 MILLION OR 74 CENTS A SHARE COMPARED WITH NET INCOME OF 13 MILLION OR 29 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE DROPPED 10 TO 294 MILLION FROM 327 MILLION ROBERT L DRURY CHIEF FINANCIAL OFFICER SAID FISCAL FOURTHQUARTER RESULTS SHOULD IMPROVE BECAUSE OF COSTCUTTING BUT HE SAID THE COMPANY DOESN'T EXPECT A RETURN TO PROFITABILITY UNTIL FISCAL 1994 9308300040 930830 BUSINESS BRIEF FIRST FIDELITY BANCORP PURCHASE OF BANKVEST UNIT IS PLANNED FOR 196 MILLION FIRST FIDELITY BANCORP SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE BANKVEST INC AND FIRST PEOPLES NATIONAL BANK OF EDWARDSVILLE PA FOR 196 MILLION UNDER THE AGREEMENT SHAREHOLDERS OF CLOSELY HELD BANKVEST INC WHICH OWNS 70 OF FIRST PEOPLES WILL RECEIVE 214 A SHARE FOR A 138 MILLION TRANSACTION PRICE THE REMAINING SHAREHOLDERS IN FIRST PEOPLES NATIONAL BANK WILL RECEIVE 465 A SHARE OR 58 MILLION IN TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE FIRST FIDELITY SHARES CLOSED AT 47875 DOWN 375 CENTS FIRST FIDELITY HAS 323 BILLION IN ASSETS AND OPERATES MORE THAN 600 OFFICES THE LAWRENCEVILLE NJ COMPANY WHICH HAS 187 BRANCHES IN PENNSYLVANIA SAID THE PURCHASE OF FIRST PEOPLES IS PART OF ITS EFFORT TO EXPAND ITS OPERATIONS IN NORTHEASTERN PENNSYLVANIA FIRST PEOPLES NATIONAL BANK HAS ABOUT 102 MILLION IN ASSETS AND 84 MILLION IN DEPOSITS 9308300039 930830 GLOBAL VIEW ON LINSEYWOOLSEY AND GOALS OF THE NEW POLITICS BY GEORGE MELLOAN AS A YOUNG REPORTER I WOULD SOMETIMES FIND MYSELF IN LATENIGHT CONVERSATIONS WITH CHARLES WHITE A VETERAN INDIANA JOURNALIST I ADMIRED FOR HIS WIT AND KNOWLEDGE AND FOR THE FACT THAT HIS BYLINE SOMETIMES APPEARED IN TWO OF THE PREMIER US MAGAZINES OF THE ERA COLLIERS AND THE SATURDAY EVENING POST CHARLIE HAD SEEN HIS SHARE OF THE WORLD'S TERRORS AS A STAFFER FOR STARS AND STRIPES HE HAD ENDURED THE BLITZ IN WORLD WAR II LONDON AFTER THE WAR HE WON A BOUT WITH DEMON RUM ALL HOOSIERS ARE EITHER ADMIRERS OR PURVEYORS OF HOMESPUN PHILOSOPHY AND IN CHARLIE'S CASE THAT WAS QUITE LITERALLY TRUE AFTER SEVERAL HOURS OF DEBATING THE TROUBLES OF THE TIME WE WOULD FIND OURSELVES FRUSTRATED BY THE INABILITY OF THE WORLD'S MOVERS AND SHAKERS TO SEE THINGS AS CLEARLY AS COULD WE CHARLIE THEN WOULD BRING UP HIS LINSEYWOOLSEY PLAN WHY DON'T WE ALL GO DOWN TO BROWN COUNTY INDIANA'S SCENIC WONDERLAND AND LIVE ON LITTLE FARMS WE'LL GROW OUR OWN FOOD AND WEAVE LINSEYWOOLSEY AND WE'LL ALL BE A LOT HAPPIER WE WOULD BOTH AGREE WHOLEHEARTEDLY WITH THAT AND CALL IT A NIGHT WARMED AND COMFORTED AT THE HEARTHS OF OUR IMAGINARY LOG CABINS WISHES FOR A SIMPLER WORLD ARE A FORM OF HEART BALM NEEDED FROM TIME TO TIME BY PEOPLE EVERYWHERE EXCEPT MAYBE THOSE IN REMOTE OUTPOSTS WHERE LIFE REALLY IS SIMPLE AND CONFINING A CLOSE EXAMINATION OF CHARLIE'S PLAN WOULD HAVE RAISED A FEW TROUBLING QUESTIONS FOR EXAMPLE WOULD WE REALLY HAVE THE COMPETENCE AND ENERGY TO RAISE FLAX TEND SHEEP AND CONVERT LINEN AND WOOL INTO LINSEYWOOLSEY AND WOULD THAT CONSTITUTE A SIMPLER LIFE PROBABLY NOT BUT ONE DOESN'T EXAMINE INNOCENT NOSTALGIC EMOTIONS TOO CLOSELY UNLESS THAT IS WE BEGIN TO HEAR THEM FROM THE MOVERS AND SHAKERS THEMSELVES THEN MAYBE WE SHOULD START WORRYING ABOUT WHETHER LEADERS HAVE REAL POLICIES OR ARE THEMSELVES RETREATING INTO LINSEYWOOLSEYISMS THESE THOUGHTS ARE RELATED IN PART TO A FASCINATING SERIES OF ARTICLES BY MICHAEL KELLY FOR THE NEW YORK TIMES SOME WEEKS BACK DEALING WITH THE INTROSPECTIONS OF HILLARY CLINTON THE FIRST LADY'S RAMBLINGS TO MR KELLY REVEAL A WOMAN WHO IS TROUBLED BY THE SAME CONCERNS THAT NAG MANY OTHER AMERICANS SHE LONGED FOR THE OLD DAYS WHEN WOMEN COULD WALK SAFELY ON CITY STREETS AT NIGHT WHEN URBAN RESIDENTS COULD ENJOY SAFE AND WELLKEPT PARKS THERE INDEED WAS A TIME WHEN US INNER CITY NEIGHBORHOODS THOUGH BY NO MEANS COMFORTABLE WERE AT LEAST NOT THE SQUALID DRUG INFESTED COMBAT ZONES MANY HAVE BECOME IT IS A RELATIVELY NEW PHENOMENON TO READ OF CHILDREN BARELY OUT OF PUBERTY ENGAGING IN CRIMES OF VIOLENCE AS MR KELLY OBSERVED MRS CLINTON'S CONCERNS SOUNDED A LOT LIKE THOSE RAISED BY DAN QUAYLE IN HIS PREELECTION FAMILY VALUES SPEECHES MRS CLINTON DID NOT WELCOME THE COMPARISON BUT THERE IS NO REASON WHY SHE SHOULD HAVE TAKEN OFFENSE AT A POLITICAL OPPONENT AT LEAST SHARING HER WISH FOR SPIRITUAL VALUES TO PLAY A MORE COMPELLING ROLE IN AMERICAN SOCIETY YET THE IMPLIED QUESTION WHETHER DERIVED FROM MR QUAYLE'S CONCERNS ABOUT UNWED MOTHERS OR MRS CLINTON'S PONDERINGS ABOUT VAGRANT YOUTH AND CRIME IN THE STREETS IS HOW SHOULD GOVERNMENT ADDRESS SUCH ISSUES IT IS INTERESTING THAT BOTH MR QUAYLE'S SPEECHES AND MRS CLINTON'S WANDERINGS INTO THE POLITICS OF MEANING MET WITH A GREAT DEAL OF PUBLIC DERISION AS JIMMY CARTER ONCE LEARNED OR SHOULD HAVE MORALISMS FROM PUBLIC OFFICIALS ARE OFTEN REGARDED WITH SUSPICION IN AMERICA MAYBE THEY SHOULD BE GOVERNMENTS EITHER ACHIEVE OR FAIL TO ACHIEVE MORAL AUTHORITY BY THE WAY THEY EXERCISE THEIR VERY CONSIDERABLE POWERS WHAT THE PUBLIC SEEMS TO WANT FROM LEADERS IS NOT PREACHMENTS ABOUT THE SINS OF MANKIND BUT SOME EVIDENCE THAT LEADERS HAVE THE POLITICAL COURAGE TO DEAL FORTHRIGHTLY WITH THE PROBLEMS THEY PUBLICLY DEPLORE PRESIDENT CLINTON HAS PROMISED TO ADDRESS CRIME WITH GREATER FEDERAL FUNDING FOR LAW ENFORCEMENT THAT'S FINE IF THE MONEY IS SPENT WELL NOT A FOREGONE CONCLUSION BUT THE PATHOLOGY OF CRIME IN THE UNITED STATES GOES DEEPER AND ALSO HIGHER SOME SOCIOLOGISTS ARGUE THAT RESPECT FOR LAW DIMINISHES WITH THE PROLIFERATION OF LAWS THERE IS NOTHING IN THE CLINTON ADMINISTRATION SO FAR TO SUGGEST A RETREAT FROM INCREASINGLY AUTHORITARIAN FORMS OF FEDERAL INTERVENTION INTO THE DAILY LIVES OF AMERICANS BY THE WETLANDS POLICE FOR EXAMPLE NOR IS THERE MUCH EVIDENCE OF PRESIDENTIAL CONCERN ABOUT MISDEEDS IN SUCH HIGH PLACES AS THE US CONGRESS GOVERNMENT HAS IT WITHIN ITS POWER TO ADDRESS WHAT A GREAT MANY CRIMINOLOGISTS SEE AS THE FOUNTAINHEAD OF CRIME A WELFARE SYSTEM AND A WELFARE MENTALITY THAT SUPPORTS IDLENESS BREEDING GENERATION AFTER GENERATION OF YOUNG PEOPLE WHO DO NOT SEE A LIFE OF HONEST WORK AS A NATURAL STATE OF BEING OR IF WE REALLY WANT TO GET SERIOUS MRS CLINTON'S CONCERNS ABOUT CRIME ON THE STREETS COULD BE MET WITH A RESTORATION OF ANTIVAGRANCY LAWS BUT DOES SHE OR HER HUSBAND HAVE SUFFICIENT POLITICAL COURAGE TO BUCK THE AMERICAN CIVIL LIBERTIES UNION AND OTHER FORCES WHO THINK IT IS A GROSS INFRINGEMENT ON HUMAN RIGHTS TO ASK YOUNG MEN LOUNGING ON STREET CORNERS OR IN BARS HOW THEY SUPPORT THEMSELVES CERTAINLY AMERICANS WANT TO ADDRESS SOCIAL PROBLEMS WITHOUT SACRIFICING THE INTELLECTUAL AND EMOTIONAL OXYGEN THAT DERIVES FROM AN ESSENTIALLY LIBERAL SOCIAL ORDER THERE IS NO EVIDENT DESIRE IN AMERICAN POLITICS TO RETURN TO A RIGIDLY MORALISTIC THEOCRACY ON THE ORDER OF SAY THE MASSACHUSETTS BAY COLONY EVEN IF THAT WE RE POSSIBLE MRS CLINTON IN PARTICULAR APPEARS TO BE TORN BETWEEN THE LIBERAL SOCIAL VALUES THAT PERMEATE THE MODERN DEMOCRATIC PARTY AND HER OWN YEARNING FOR THE DAYS OF HER YOUTH WHEN THERE SEEMED TO BE A STRONGER MORAL AND RELIGIOUS ORDER BUT THERE IS NO NECESSARY INCONSISTENCY BETWEEN A GOVERNMENT THAT IS SERIOUS ABOUT THE SAFETY OF ITS CITIZENS AND A GOVERNMENT THAT WANTS TO MAINTAIN A LIBERAL SO CIAL AND POLITICAL ORDER IT ALL HAS TO DO WITH THE KIND OF LIBERALISM A GOVERNMENT CHOOSES TO EMPHASIZE WHETHER IT IS THE LIBERALISM THAT SEES GOVERNMENT IN A LIMITED ROLE RESPONSIBLE MAINLY FOR PUBLIC ORDER AND SECURITY OR GOVERNMENT AS THE MOTHER OF US ALL CHARLIE WHITE MUSED ABOUT FLEEING TO BROWN COUNTY IN PART TO ESCAPE THE ENVELOPING FOLDS OF AN INCREASINGLY COMPLEX SOCIETY LATER A GOOD MANY MEMBERS OF THE WOODSTOCK GENERATION ACTUALLY TRIED THAT APPROACH MOSTLY WITH UNHAPPY CONSEQUENCES BUT MOST AMERICANS PREFER TO STICK TO THEIR LASTS AND WHILE A SIMPLER WORLD MAY NOT BE ACHIEVABLE MAYBE A SIMPLER FORM OF GOVERNMENT STILL IS 9308300038 930830 MILITARY COULD HALVE PLANNED PURCHASE OF MCDONNELL DOUGLAS C17S STUDY SAYS BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL THE MILITARY COULD HALVE ITS PLANNED PURCHASE OF 120 MCDONNELL DOUGLAS CORP C17 TRANSPORTS AND STILL DEPLOY FORCES EFFECTIVELY A PIVOTAL NEW STUDY FOR THE PENTAGON REPORTS THAT OPTION WHICH APPEARS TO BE GATHERING SUPPORT AMONG TOP DEFENSE OFFICIALS WAS THE LEAD ALTERNATIVE DISCUSSED FRIDAY IN A CLOSEDDOOR SESSION OF THE PENTAGON'S DEFENSE ACQUISITION BOARD ACCORDING TO PEOPLE FAMILIAR WITH THE TALKS THE BOARD AIMS TO SETTLE THE FATE OF THE CONTROVERSIAL 40 BILLION PROGRAM IN THE WEEKS AHEAD THE ALTERNATIVE PROPOSAL ALSO CALLS FOR ACQUIRING 30 TO 50 MODIFIED COMMERCIAL JETLINERS SUCH AS BOEING CO 747 JUMBO JETS OR REBUILT MCDONNELL DOUGLAS DC10 AIRLINERS SIMULTANEOUSLY INTENSE NEGOTIATIONS BETWEEN THE COMPANY AND THE PENTAGON ARE LIKELY TO SHAKE UP PROGRAM MANAGEMENT AT MCDONNELL DOUGLAS AND WITHIN THE AIR FORCE SHARPLY REDUCE 16 BILLION IN C17RELATED CLAIMS THE ST LOUIS COMPANY HAS MADE AGAINST THE GOVERNMENT AND OVERHAUL THE WAY THE JETS ARE PRODUCED ACCORDING TO THE PEOPLE CLOSE TO THE TALKS THE PENTAGON APPEARS TO BE LEANING AWAY FROM OPTIONS TO EITHER BUY ALL 120 OF THE AIRLIFTERS OR TO TERMINATE THE PROGRAM ALTOGETHER AND TOWARD A SOLUTION SOMEWHERE IN BETWEEN THE ATTENTION TO OPTIONS THAT CALL FOR LARGESCALE PURCHASES OF THE AIRCRAFT AND ON DISSOLVING THE PROGRAM'S CONSIDERABLE POLITICAL ILLS POINT TOWARD A FRAGILE VICTORY FOR MCDONNELL DOUGLAS AND BACKERS OF THE ADVANCED PLANE OF LATE THEIR AMBITION HAS BEEN THAT THE C17 PROGRAM MERELY STAY ALOFT IN SUBSTANTIAL NUMBERS OVERCOMING OPPOSITION THAT HAS BUILT UP IN ITS 14YEAR HISTORY OF HUGE COST OVERRUNS PERFORMANCE SHORTFALLS AND TECHNICAL FLAWS WHICH WERE CAPPED WHEN THE PLANE'S WINGS BUCKLED DURING A STRESS TEST LATE LAST YEAR ANOTHER MAJOR PROBLEM OR DIFFICULTY WITH THE AIRPLANE WOULD BE FATAL TO IT SAID AIR FORCE GEN RONALD FOGLEMAN US COMMANDER OF DEFENSE MOBILITY IN AN INTERVIEW EARLY LAST WEEK WHILE A HARSH FIGHT AWAITS IN CONGRESS HE PREDICTS ENOUGH C17S WILL BE ORDERED TO ENSURE THAT PRODUCTION CONTINUES MCDONNELL DOUGLAS AIR FORCE AND PENTAGON SPOKESMEN HAVE DECLINED TO COMMENT ON THE FRIDAY SESSION AND CONTINUING REVIEWS BUT THE ELABORATE STUDIES AND DEALINGS ARE SWIRLING AROUND PENTAGON ACQUISITION CHIEF JOHN DEUTCH THE UNDERSECRETARY WHO HEADS THE BOARD AND WHO DISPATCHED TWO REVIEW TEAMS IN MAY AT THE MEETING FRIDAY ANALYSTS FROM THE INSTITUTE FOR DEFENSE ANALYSIS A WASHINGTON THINK TANK REPORTED FINDINGS SHOWING THAT 60 TO 80 C17S COULD PROVIDE EFFECTIVE DEPLOYMENT OF TROOPS AND EQUIPMENT AT A SHARPLY REDUCED COST WHEN COUPLED WITH THE COMMERCIAL JETS ACCORDING TO PEOPLE FAMILIAR WITH THE SESSION AND STUDY THE STUDY ALSO REVIEWED OPTIONS TO BUY ALL 120 TRANSPORTS OR REBUILD OLDER LOCKHEED CORP C141 AIRLIFTERS THE CHOICE HINGES ON HOW MUCH THE PENTAGON WANTS TO SPEND HOW MUCH TOTAL AIRLIFT CAPACITY IT WANTS AND HOW EACH TYPE OF TRANSPORT CAN BE USED THOSE ISSUES WILL BE EXPLORED AT A SEPT 15 BOARD MEETING A GROUP OF DEFENSE SCIENCE BOARD RESEARCHERS ALSO HAS BEEN ASSIGNED TO EXAMINE THE STATE OF THE C17 PROGRAM THAT GROUP WILL REPORT DURING A THIRD BOARD MEETING IN THE WEEKS AHEAD WITH MR DEUTCH'S FINAL DECISION TO FOLLOW PEOPLE FAMILIAR WITH THE SCIENCE BOARD STUDY SAY IT FOUND THAT SHORTCOMINGS BEHIND THE PLANE'S PERSISTENT TECHNICAL GOOFS ARE CORRECTABLE AND THAT THE COMPANY IS FINANCIALLY FIT TO CARRY OUT THE HUGE PROGRAM HOWEVER WEEKS OF TALKS BETWEEN MR DEUTCH AND COMPANY CHAIRMAN JOHN MCDONNELL STILL COULD STALL OVER THE CLAIMS ISSUE ALSO CENTRAL TO THE TALKS ARE PLANS FOR REPLACING PROGRAM MANAGEMENT AT THE COMPANY AND THE AIR FORCE MANAGERS IN THE REVAMPED C17 PROGRAM MAY WIND UP REPORTING DIRECTLY TO MR MCDONNELL SUCH A SHAKEUP WOULD BE THE PROGRAM'S SECOND IN APRIL DEFENSE SECRETARY LES ASPIN FIRED FORMER PROGRAM MANAGER MAJ GEN MICHAEL BUTCHKO AND DISCIPLINED OTHER SENIOR OFFICIALS IN CONNECTION WITH THE PLANE'S TURBULENT HISTORY EVEN IF THE C17 PASSES MUSTER WITH MR DEUTCH IT STILL MUST RUN THE GANTLET IN CONGRESS WHERE MEMORIES LINGER OF THE PROGRAM'S MANY GAFFES SOME CRITICS CONCEDE PRIVATELY THAT THE C17 APPEARS TO BE GAINING MOMENTUM BUT THEY SAY IT'S ONLY BECAUSE THE CLINTON ADMINISTRATION WHICH HAS MADE BIG PROMISES TO HELP THE STRUGGLING DEFENSE AND AEROSPACE INDUSTRIES CAN ILL AFFORD THE 35000 COMPANY LAYOFFS THAT A CANCELLATION COULD BRING BUT THE MOST VOCAL CRITICS AREN'T SHRINKING FROM THE BATTLE YET REP JOHN CONYERS THE MICHIGAN DEMOCRAT WHO IS CHAIRMAN OF THE HOUSE GOVERNMENT OPERATIONS COMMITTEE RECENTLY CALLED AGAIN FOR RESTRAINT IN C17 SUPPORT SUCH CRITICS ALLEGE THE PLANE CAN'T LAND ON SHORT RUNWAYS AS PROMISED AND THEY CHALLENGE PROCEDURES FOR TESTING THE C17'S NOWREBUILT WING THEY ALSO ARE CRITICIZING SUBSTANTIAL SHORTFALLS IN THE WEIGHT THE C17 WAS INITIALLY SUPPOSED TO CARRY GEN FOGLEMAN CALLED THE LANDINGDISTANCE ALLEGATION BOGUS SAYING HE HAS LANDED IT ON LESS RUNWAY DISTANCE THAN REQUIRED HE DEFENDED THE C17'S CAPACITY AS ADEQUATE AND THE WINGRETESTING PROCEDURES AS PRUDENT PROPONENTS SAY THE C17'S PROBLEMS HAVE BEEN PUT TO REST AND THE PLANE IS SURVIVING NOW BECAUSE IT IS SORELY NEEDED GIVEN SEVERAL TRENDS IN DEFENSE MOBILITY THE FIRST JETS DELIVERED THIS SUMMER TO CHARLESTON SC ARRIVE JUST AS THE NATION SHIFTS DEPLOYMENT STRATEGIES WITH THE FORMER SOVIET UNION NO LONGER A THREAT MORE US FORCES ARE COMING HOME FROM OVERSEAS THAT PUTS THEM FARTHER FROM THE REGIONAL CONFLICTS AND HUMANITARIAN MISSIONS ENVISIONED FOR THE FUTURE ASSIGNMENTS TO PLACES WITH POOR RUNWAYS WHERE THE NATION'S LOCKHEEDBUILT TRANSPORTS COME UP SHORT THE C5 HAULS BIG CARGO BUT NEEDS A BIG AIRPORT AND THE C130 AND C141 ARE TOO SMALL THE C17 HOWEVER CAN HAUL AN M1 TANK OR TWO BRADLEY FIGHTING VEHICLES INTO NARROW UNIMPROVED AIRFIELDS IT CAN DROP HEAVY EQUIPMENT FROM 1000 FEET CAN BACK UP ON THE GROUND AND REQUIRES ONLY ONE OPERATOR TO UNLOAD CARGO BACKERS OF THE C17 ALSO NOTE THAT CRACKING AND METALFATIGUE HAVE GROUNDED PLANES IN THE AIR FORCE'S WORKHORSE FLEET OF 249 C141S A QUICKENED PACE OF C141 SCHEDULED RETIREMENTS MEANS THE AIR FORCE NEEDS SOME MEANS OF REPLACEMENT JUST TO MAINTAIN CAPACITY GEN FOGLEMAN ALLOWED THAT UNTIL NOW THE PLANE HAS BEEN A TARGET FOR CRITICS BECAUSE OF LOUSY AIR FORCE MANAGEMENT OR LACK OF ATTENTION ON THE PART OF THE CONTRACTORS WHICH HAS LED TO CHARGES THAT THE PLANE CAN'T FULFILL ITS MISSION I DON'T THINK THE POLITICAL HEAT WILL EVER BE OFF THIS AIRPLANE HE ADDED IF ONLY BECAUSE IT'S A COSTLY PROGRAM IN AN ERA OF SCARCE DEFENSE FUNDS 9308300037 930830 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CELLULAR INC 100 MILLION IN PROCEEDS OF SENIOR SUBORDINATED DISCOUNT NOTES DUE SEPT 1 2003 PRICED AT 56609 TO YIELD 1175 ACCORDING TO MCM CORPORATEWATCH THE NOTES 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 FEDERAL FARM CREDIT BANKS FUNDING CORP 200 MILLION OF FLOATINGRATE MEDIUMTERM NOTES DUE SEPT 7 1994 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WILL PAY A QUARTERLY RATE BASED ON PRIME MINUS 280 BASIS POINTS THE INITIAL COUPON WILL BE SET ON SEPT 7 AT PAR THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL HOME LOAN MORTGAGE CORP 1225 MILLION OF COMBINED CASHFLOW SECURITIES GOLD SERIES C001 BACKED BY ITS 30YEAR 8 MORTGAGE SECURITIES UNDERWRITER FOR THE ISSUE IS FHLMC SECURITY SALES AND TRADING GROUP FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF DEBENTURES DUE SEPT 7 2000 PRICED AT PAR TO YIELD 555 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES WHICH ARE NONCALLALBE FOR ONE YEAR WERE PRICED AT A SPREAD OF 48 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF MEDIUMTERM NOTES DUE SEPT 9 2003 PRICED AT PAR TO YIELD 597 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 50 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO PACIFIC INVESTMENT MANAGING CO COMMERCIAL MORTGAGE SECURITIES TRUST INC INITIAL OFFERING OF 11 MILLION COMMON SHARES PRICED AT 15 APIECE THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES 1993191 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 67 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 178 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 170 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES 1993193 IS BACKED BY THE AGENCY'S PRINCIPALONLY STRIP TRUST 245 WHICH IS BACKED IN TURN BY 30YEAR 85 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 898 AND WEIGHTED AVERAGE MATURITY OF 338 MONTHS ANGLO FINANCING NO 1 PLC UK PARENT 165 MILLION OF SECURED FLOATINGRATE EURONOTES DUE SEPTEMBER 2001 AT ISSUE PRICE PAR AND REOFFER PRICE 998 VIA KLEINWORT BENSON LTD INTEREST FLOATS AT 55 BASIS POINTS ABOVE THREEMONTH LONDON INTERBANK OFFERED RATE FOR POUNDS ISSUER RESERVES OPTION TO REDEEM NOTES AT ANY TIME FROM SEPTEMBER 1998 EXPECTED LIFE SPAN OF THE NOTES IS 44 YEARS FEES 045 POINT INTEREST PAYABLE QUARTERLY BANK NEDERLANDSE GEMEENTEN NETHERLANDS 100 MILLION SWISS FRANCS OF 225 PRIVATELY PLACED NOTES DUE OCT 8 2001 PRICED AT PAR WITH WARRANTS INTO GOLD ATTACHED VIA CREDIT SUISSE EACH NOTE CARRRIES 500 WARRANTS AND FIVE WARRANTS BUY ONE OUNCE OF GOLD AT EXERCISE PRICE OF 380 PER OUNCE WARRANTS EXERCISABLE FROM OCT 8 1993 UNTIL OCT 8 1995 FEES STANDARD BAYERISCHE LANDESANSALT FUR AUFBAUFINANZIERUNG GERMAN AGENCY 150 MILLION MARKS OF REVERSE FLOATINGRATE EURONOTES DUE SEPT 29 2003 AT ISSUE PRICE PAR VIA TRINKAUS & BURKHARDT KGAA FOR FIRST YEAR BONDS PAY A FIXED COUPON OF 775 INTEREST FLOATS THEREAFTER AT 18 MINUS TWICE SIXMONTH LIBOR FOR MARKS FEES 03 POINT INTEREST PAYABLE SEMIANNUALLY FUJITA US CORP JAPANESE PARENT 50 MILLION OF FLOATINGRATE EURONOTES DUE SEPT 13 1998 AT ISSUE AND REOFFER PRICE PAR VIA TOKAI BANK EUROPE LTD INTEREST FLOATS AT 35 BASIS POINTS ABOVE SIXMONTH LIBOR FOR DOLLARS GUARANTOR TOKAI BANK LTD FEES 03 POINT GENERAL ELECTRIC CAPITAL CORP US PARENT 250 MILLION OF 5 EUROBONDS DUE SEPT 10 1998 AT ISSUE PRICE 10156 VIA SWISS BANK CORP REOFFERED AT 99935 A SPREAD OF 14 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE FEES 1875 POINTS INTEREST PAYABLE SEMIANNUALLY NORDIC INVESTMENT BANK SCANDINAVIAN SUPRANATIONAL 75 BILLION PORTUGUESE ESCUDOS OF 975 EUROBONDS DUE SEPT 27 1996 AT ISSUE PRICE 101375 VIA BANCO PORTUGUES DE INVESTIMENTO SA AT COMANAGERS' BREAKEVEN PRICE OF 101125 BONDS YIELD 9303 A MARGIN OF 38 BASIS POINTS BELOW COMPARABLE PORTUGUESE TREASURY FEES 15 POINTS INCLUDING SPECIAL LEAD MANAGERS' FEE OF 025 POINT RESIDENTIAL PROPERTY SECURITIES NO 3 PLC IRISH PARENT 250 MILLION OF MORTGAGEBACKED SECURITIES IN THREETRANCHE OFFERING DUE 2025 VIA NATWEST CAPITAL MARKETS DETAILS OF THE THREE TRANCHES ARE AS FOLLOWS CLASS A1 95 MILLION OF SENIOR SECURED NOTES RATED DOUBLEA AND PAYING THREEMONTH LIBOR PLUS 35 BASIS POINTS TO SEPT 2001 THEN AT AVERAGE OF QUOTES FROM MARKETMAKERS AVERAGE LIFE IS 133 YEARS FEES ARE 015 POINT AND ISSUE AND REOFFER PRICE IS PAR CLASS A2 150 MILLION OF SENIOR UNSECURED NOTES RATED DOUBLEA AND PAYING THREEMONTH LIBOR PLUS 22 BASIS POINTS TO SEPT 2001 THEN THE AVERAGE OF QUOTES FROM MARKETMAKERS AVERAGE LIFE IS 633 YEARS FEES ARE 0325 POINT AND ISSUE AND REOFFER PRICE IS PAR CLASS B 5 MILLION OF SUBORDINATED NOTES RATED SINGLEA AND PAYING THREEMONTH LIBOR PLUS 125 BASIS POINTS TO SEPT 2001 THEN AVERAGE OF QUOTES FROM MARKETMAKERS AVERAGE LIFE IS EIGHT YEARS AND FEES AND PRICE WERE NOT DISCLOSED ALL NOTES ARE DUE FOR SETTLEMENT AUG STANDARD CREDIT CARD MASTER TRUST 199392 US PARENT 750 MILLION OF 595 GLOBAL BONDS DUE SEPT 7 2003 AT ISSUE AND FIXED REOFFER PRICE 9988 VIA GOLDMAN SACHS INTERNATIONAL LTD BONDS YIELD 5966 FEES 05 POINT TOKYU KOKEN CO JAPAN 75 MILLION SWISS FRANCS OF FLOATINGRATE NOTES DUE SEPT 9 1998 AND PRICED AT 1012 PAYING COUPON OF SIXMONTH LIBOR PLUS 04 VIA NOMURA BANK SWITZERLAND FEES 1625 POINTS 9308300036 930830 INTERNATIONAL BRIEF MITSUBISHI CORP JOINT VENTURE IS PLANNED IN CHINA TO MAKE POLYESTER JAPAN'S MITSUBISHI CORP AND A US SUBSIDIARY PLAN TO SET UP A CHINESE JOINTVENTURE FIRM IN OCTOBER TO MAKE POLYESTER FEEDSTOCK A MITSUBISHI SPOKESMAN SAID BEGINNING IN SPRING 1996 THE PROJECT COMPANY SUZHOU LING KANG CHEMICAL FIBER CO WILL PRODUCE ABOUT 10000 METRIC TONS PER YEAR OF POLYESTER FILAMENT AND 55000 METRIC TONS A YEAR OF POLYESTER CHIP THE SUZHOU CHEMICAL FIBER PLANT WILL OWN 74 OF THE COMPANY TO BE BASED IN SUZHOU CITY OF JIANGSU PROVINCE WHILE MITSUBISHI AND US ENGINEERING FIRM CHEMTEX INTERNATIONAL INC EACH WILL OWN 13 THE PROJECT COMPANY WILL BE CAPITALIZED AT 38 MILLION WITH INVESTMENT IN THE PROJECT ESTIMATED AT ABOUT 110 MILLION THE MITSUBISHI SPOKESMAN SAID THE MATERIAL PRODUCED IN ITS FIRST CHINESE POLYESTER PROJECT WOULD HELP MEET GROWING DEMAND FOR POLYESTER WITHIN CHINA 9308300035 930830 OTC FOCUS NEWSTOCK OFFERINGS TO SURGE THIS FALL BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS ARE BRACING FOR A DELUGE OF NEW STOCK OFFERINGS EXPECTED THIS FALL THE RUSH WILL COME ON THE HEELS OF A STEADY FLOW OF DEALS LAUNCHED DURING THE SUMMER USUALLY A SLOW TIME FOR INITIAL PUBLIC OFFERINGS IT'S AMAZING HOW THE DEAL FLOW LASTED THROUGH THE HEAT OF THE SUMMER SAYS JOHN LAPORTE HEAD OF T ROWE PRICE'S NEW HORIZONS FUND IN BALTIMORE I HAVE NEVER SEEN IT LIKE THIS BEFORE INDEED THE IPO MARKET HAS NEVER BEFORE RAISED SO MUCH MONEY IN THE SUMMER ANALYSTS SAY IN JUNE 75 ISSUES CAME TO MARKET ANOTHER 74 WERE SOLD IN JULY AND SO FAR THIS MONTH 63 NEW ISSUES HAVE BEEN MARKETED ALTOGETHER NEW ISSUANCE THIS SUMMER HAS RAISED ABOUT 15 BILLION FROM INVESTORS SAYS ADRIAN EASTERBROOK AN ANALYST WITH SECURITIES DATA CO BUT THAT'S NOTHING COMPARED WITH WHAT LIES AHEAD SO FAR THERE ARE MORE THAN 150 IPOS IN THE PIPELINE FOR SEPTEMBER ALONE PREPARATIONS FOR THE SELLING BINGE ARE CREATING TRAFFIC JAMS RECENTLY IN MINNEAPOLIS FOR INSTANCE THERE WERE 11 IPO BREAKFAST ROADSHOW MEETINGS SCHEDULED FOR THE SAME WEDNESDAY MORNING SAYS MARTIN HURWITZ PORTFOLIO MANAGER AT IDS FINANCIAL SERVICES IN MINNEAPOLIS THERE ISN'T ENOUGH TIME IN THE WORLD FOR ME TO READ ABOUT ALL THE COMPANIES LET ALONE ATTEND ALL THE MEETINGS HE SAYS THERE WILL BE A BRIEF RESPITE THIS WEEK AND NEXT HOWEVER AS UNDERWRITERS AND INVESTORS TAKE TIME OFF TO ENJOY THE LABOR DAY HOLIDAY WEEKEND BUT THEN COMES THE DOWNPOUR OF IPOS THE PROSPECTUSES ARE STARTING TO COME IN MR LAPORTE SAYS AND THE PHONE CALLS ARE PICKING UP SPEED AS UNDERWRITERS TRY TO SET UP MEETINGS WITH THE COMPANY MANAGERS IT'S GOING TO BE HECTIC HE SAYS T ROWE PRICE ANALYSTS DIVIDE THE LOAD OF PROSPECTUSES MARKETING DOCUMENTS FOR THE COMPANIES' OFFERINGS AND SPEND MANY NIGHTS PORING OVER PENDING OFFERINGS OF GOLF CLUB MAKERS CASINO OPERATORS AND INTERACTIVE COMPUTER/MEDIA COMPANIES ALL ANXIOUS TO RAISE MONEY BY SELLING NEW STOCK AND RIGHT NOW IS PRECISELY THE TIME TO BE RAISING MONEY SAYS ROBERT NATALE A NEWISSUES ANALYST AT STANDARD & POOR'S THERE IS A CONSIDERABLE AMOUNT OF CASH LYING FALLOW IN THE HANDS OF ASSET MANAGERS AND AN INCREASING PORTION OF THAT MONEY IS GOING INTO SMALL AND INTERMEDIATE STOCKS HE SAYS THE IPO MARKET IS A QUICK WAY TO PUT THAT MONEY TO WORK AND PROVIDE BETTERTHANAVERAGE RETURNS OVER THE SHORT TERM THIS YEAR THE AVERAGE IPO IS UP 197 REPORTS SECURITIES DATA CO THESE ARE HIGH RETURNS EVEN FOR A BULL MARKET THE NASDAQ COMPOSITE INDEX IS UP 84 SO FAR THIS YEAR THE S&P 500 HAS RISEN ONLY 57 AND THE DOW JONES INDUSTRIAL AVERAGE HAS GAINED 103 MR NATALE SAYS DECLINING INTEREST RATES ARE FUELING THE STOCK MARKET BECAUSE INVESTORS DON'T HAVE OTHER ATTRACTIVE PLACES TO PUT THEIR MONEY AND THE PREMIUM PRICES THAT INVESTORS ARE WILLING TO PAY FOR STOCKS IS ENTICING COMPANIES TO COME TO MARKET THIS IS THE PERFECT ENVIRONMENT FOR IPOS HE SAYS IT'S GOING TO BE A BLOWOUT YEAR FOR IPOS UNLESS THERE IS A MAJOR STOCK MARKET CORRECTION THE FLOW OF NEW ISSUES WILL CONTINUE IMMEDIATELY AFTER LABOR DAY CORPORATE EXECUTIVES WILL TAKE TO THE AIRWAYS VISITING AS MANY INVESTORS IN AS MANY CITIES AS POSSIBLE TO PAVE THE WAY FOR THEIR PENDING OFFERINGS LINDA KILLIAN AN ANALYST AT RENAISSANCE CAPITAL CORP IN GREENWICH CONN SAYS THAT AMONG THE DOCUMENTS FOR NEW OFFERINGS PILING UP IN HER OFFICE ARE A STEADY STREAM OF REALESTATE INVESTMENT TRUSTS OR REITS THERE ARE ALSO SEVERAL GOLFRELATED STOCKS SUGGESTING THAT GOLF MAY BE A THEME FOR INVESTORS TO PURSUE THIS FALL INDEED A TRIO OF COMPANIES COMING TO MARKET NEXT MONTH MAKE GOLF CLUBS GOLF GRIPS AND GOLF CARS LEAVING THE BAG AND TEES FOR SOME OTHER ENTERPRISING CONCERN COBRA GOLF WHICH MAKES GOLF CLUBS IS OFFERING ABOUT 33 MILLION SHARES AT BETWEEN 16 AND 18 THROUGH ITS LEADMANAGER LEHMAN BROTHERS ROYAL GRIP WHICH MAKES GOLF CLUB GRIPS IS OFFERING ONE MILLION SHARES AT BETWEEN 9 AND 11 THROUGH UNDERWRITERS LED BY WILLIAM BLAIR & CO AND CLUB CAR WHICH MAKES ELECTRIC AND GASOPERATED GOLF CARS IS OFFERING ABOUT 41 MILLION SHARES AT BETWEEN 14 AND 16 THROUGH ITS LEAD MANAGER DONALDSON LUFKIN & JENRETTE GOLF IPOS ARE NOT NEW TO WALL STREET THIS YEAR ALDILA HAS MORE THAN DOUBLED IN PRICE NOW TRADING AT 34 1/4 THE MAKER OF GRAPHITE GOLF CLUBS WENT PUBLIC IN JUNE AT 14 THROUGH ITS LEAD MANAGER ALEX BROWN & SONS BUT NOT EVERY NEW ISSUE WITH THE RIGHT THEMES IS GUARANTEED TO BE A HOT STOCK NATIONAL GOLF PROPERTIES WHICH IS BOTH A GOLF AND REIT PLAY CLOSED ON FRIDAY AT 20 3/4 JUST ABOVE ITS OFFERING PRICE OF 20 3/8 THE SANTA MONICA CALIF OPERATOR OF GOLF COURSES WAS LEADUNDERWRITTEN BY MORGAN STANLEY & CO THE HIGHESTFLYING STOCKS THESE DAYS ARE WIRELESS COMMUNICATIONRELATED ISSUES ANYTHING WITH WIRELESS IS HOT SAYS S&P'S MR NATALE SEPTEMBER IS AN EXCELLENT TIME FOR A TECHNOLOGY COMPANY TO GO PUBLIC HE RECOMMENDS FLIPPING BUYING AND THEN SELLING QUICKLY PAIRGAIN TECHNOLOGIES BECAUSE IT WILL BE HOT IN THE SHORT TERM AND RISKY IN THE LONG RUN PAIRGAIN DEVELOPED A DIGITAL COMMUNICATIONS PRODUCT THAT USES PREEXISTING COPPER WIRE HE ESTIMATES THE COMPANY WILL EARN 35 CENTS THIS YEAR WHICH GIVES IT A P/E RATIO OF 31 TIMES ITS MIDPOINT PRICE RANGE OF 11 A SHARE LEHMAN BROTHERS IS THE LEAD UNDERWRITER MR NATALE SAYS CORNERSTONE IMAGING IS ONE OF HIS FAVORITE TECHNOLOGY STOCKS COMING TO MARKET SOON THE SAN JOSE CALIF SOFTWARE COMPANY MAKES DOCUMENT IMAGE PROCESSING GRAY SCALE AND COLOR DISPLAY SUBSYSTEMS THE COMPANY IS OFFERING 18 MILLION SHARES AT BETWEEN 8 1/2 AND 10 WITH ROBERTSON STEPHENS & CO AS ITS LEAD MANAGER THERE ARE ALSO SOME COMPANIES FROM MEXICO PLANNING TO TAKE ADVANTAGE OF THE AVAILABLE CAPITAL IN THE US STOCK MARKET COCACOLA FEMSA SA A SOFTDRINK BOTTLER 30 OWNED BY COCACOLA CO OF ATLANTA PLANS AN OFFERING OF ABOUT 49 MILLION AMERICAN DEPOSITORY SHARES IN THE US AT BETWEEN 17 AND 19 AND ABOUT 16 MILLION ADS SHARES INTERNATIONALLY EACH ADS WILL REPRESENT 10 SERIES L SHARES OF COCACOLA FEMSA COMMON OTHER MEXICAN COMPANIES SCHEDULED TO BE BROUGHT PUBLIC ARE GRUPO TRIBASA A CONSTRUCTION COMPANY WHOSE OFFERING IS BEING MANAGED BY LEHMAN BROTHERS AND GRUPO CASA AUTREY A PHARMACEUTICAL COMPANY LEADUNDERWRITTEN BY JP MORGAN SECURITIES THE NASDAQ COMPOSITE INDEX ROSE 268 OR 037 TO 73407 ADVANCERS OUTNUMBERED DECLINERS 1466 TO 1285 ON TOTAL VOLUME OF 2473 MILLION SHARES DOWN FROM THURSDAY'S 2904 MILLION RIVER OAKS FURNITURE LEAPED TO 16 FROM ITS OFFERING PRICE OF 12 ON ITS FIRST TRADING DAY THE FURNITURE MAKER OFFERED 16 MILLION SHARES THROUGH UNDERWRITERS LED BY JC BRADFORD & CO THE COMPANY EXPECTED THE SHARES TO BE OFFERED AT BETWEEN 10 1/2 AND 12 GISH BIOMEDICAL JUMPED 1 1/8 TO 6 1/8 LATE THURSDAY AFTERNOON THE SANTA ANA CALIF COMPANY REPORTED EARNINGS FOR ITS FISCAL FOURTH QUARTER ENDED JUNE 30 OF 14 CENTS A SHARE UP FROM 11 CENTS A YEAR EARLIER GISH PRODUCES DISPOSABLE BLOODHANDLING PRODUCTS USED IN OPENHEART SURGERY AND OTHER OPERATIONS CEPHALON ROSE 2 TO 12 1/4 ROBERTSON STEPHENS & CO ANALYST MARK SIMON INITIATED COVERAGE OF THE STOCK WITH A BUY RECOMMENDATION AND DESIGNATED IT HIS TOP PICK IN THE NEUROSCIENCE FIELD 9308300034 930830 BUSINESS BRIEF REEBOK INTERNATIONAL LTD TIGER SHARK SUES ALLEGING 100 TRADEMARK INFRINGEMENT TIGER SHARK GOLF INC A SAN DIEGO MAKER OF GOLF EQUIPMENT ACCUSED REEBOK INTERNATIONAL LTD AND GREAT WHITE SHARK ENTERPRISES INC OF TRADEMARK INFRINGEMENT AND UNFAIR COMPETITION IN A SUIT FILED IN US DISTRICT COURT IN LOS ANGELES TIGER SHARK WHICH USES A SHARK AS ITS TRADEMARK AND DESIGN MARK ON HIGHEND GOLF EQUIPMENT SAID REEBOK USES A VIRTUALLY IDENTICAL SHARK LOGO ON FOOTWEAR AND APPAREL IT MARKETS THROUGH AN ENDORSEMENT CONTRACT WITH GREAT WHITE A COMPANY FORMED BY AUSTRALIAN GOLFER GREG NORMAN WE DON'T AGREE WITH TIGER SHARK'S POSITION AND WE HAVE NO OTHER COMMENT SAID KATE BURNHAM A SPOKESWOMAN FOR REEBOK THE STOUGHTON MASS FOOTWEAR AND APPAREL GIANT MR NORMAN WHO HAS HAD AN ENDORSEMENT CONTRACT WITH REEBOK SINCE THE LATE 1980S COULDN'T BE REACHED AND OFFICIALS AT GREAT WHITE JUPITER FLA WOULDN'T COMMENT WITH ABOUT 5 MILLION IN ANNUAL SALES PRIVATELY HELD TIGER SHARK IS HAVING OUR PRODUCTS CONFUSED WITH REEBOK'S GREG NORMAN CLOTHING LINE SAID TERRY JARRETT CHIEF OPERATING OFFICER 9308300033 930830 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED ONE INITIAL PUBLIC OFFERING THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED NINE NEW LISTINGS INCLUDING SIX INITIAL PUBLIC OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED ONE NEW LISTING THE BIG BOARD SAID IT BEGAN TRADING THE FOLLOWING INITIAL OFFERING PIMCO COMMERCIAL MORTGAGE SECURITIES TRUST INC NEWPORT BEACH CALIF A CLOSEDEND FUND UNDER PCM THE NATIONAL MARKET SYSTEM OF THE NASDAQ ADDED THE FOLLOWING INITIAL OFFERINGS THE AMERICAN DEPOSITARY RECEIPTS AND WARRANTS OF FUTUREMEDIA PUBLIC LTD WEST SUSSEX ENGLAND A DEVELOPER AND DISTRIBUTOR OF MULTIMEDIA COURSEWARE UNDER FMDAY AND FMDAW SCIENTIFIC GAMES HOLDINGS CORP ALPHARETTA GA A MAKER OF INSTANT LOTTERY TICKETS UNDER SGIH A+ COMMUNICATIONS INC NASHVILLE TENN A PROVIDER OF PAGING AND TELEMESSAGING SERVICES UNDER ACOM GROW BIZ INTERNATIONAL INC GOLDEN VALLEY MINN A FRANCHISOR UNDER GBIZ PERFORMANCE FOOD GROUP CO NASHVILLE TENN A MARKETER AND DISTRIBUTOR OF FOOD AND FOODRELATED PRODUCTS UNDER PFGC AND SIMMONS OUTDOOR CORP TALLAHASSEE FLA A SPECIALTY MAKER OF BRANDED SPORTING GOODS UNDER SIMM THE NASDAQ ALSO BEGAN TRADING AMERICAN DEPOSITARY RECEIPTS OF THE FOLLOWING COMPANIES GREAT WALL ELECTRONIC INTERNATIONAL LTD KWAI CHUNG NEW TERRITORIES HONG KONG A CONSUMER ELECTRONICS COMPANY GREAT WALL ELECTRONIC'S ORDINARY SHARES TRADE ON THE HONG KONG STOCK EXCHANGE GAMBRO AB LUND SWEDEN A MEDICAL AND THERAPEUTIC PRODUCTS COMPANY UNDER GAMBY THE NATIONAL MARKET SYSTEM ALSO BEGAN TRADING THE SHARES OF SILVER KING COMMUNICATIONS INC ST PETERSBURG FLA A HOLDING COMPANY OF 12 INDEPENDENT UHF TELEVISION STATIONS WHICH PREVIOUSLY TRADED ON THE NASDAQ'S SMALLCAP MARKET THE AMEX BEGAN TRADING SHARES IN MENTAL HEALTH MANAGEMENT INC MCLEAN VA A PROVIDER OF MENTAL HEALTH PROGRAMS AND SPIN OFF OF MEDIQ INC PENNSAUKEN NJ UNDER MHMWI THE AMEX ALSO BEGAN TRADING OPTIONS ON TELEMATICS INTERNATIONAL INC THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS ON NETWORK EQUIPMENT TECHNOLOGIES INC THE PACIFIC STOCK EXCHANGE BEGAN TRADING OPTIONS ON NETWORK EQUIPMENT TECHNOLOGIES INC CALIFORNIA ENERGY INC KANSAS CITY SOUTHERN INDUSTRIES INC AND READING & BATES CORP 9308300032 930830 KOHL REAFFIRMS BID TO CHANGE FARMAID PACT SUPPORT OF FRENCH DEMANDS FOR REVISIONS THREATENS GOVERNMENT DIVISIONS BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT GERMAN CHANCELLOR HELMUT KOHL RISKED DIVISIONS IN HIS GOVERNMENT THIS WEEKEND BY REINFORCING AN OFFER TO SUPPORT UNSPECIFIED FRENCH DEMANDS FOR REVISING THE 1992 USEUROPEAN COMMUNITY ACCORD TO REDUCE SUBSIDIZED FARM TRADE WE WILL CAREFULLY STUDY THESE PROPOSALS AND DO EVERYTHING SO THAT A COMPROMISE CAN BE FOUND FOR GATT TO BE BROUGHT TO A SUCCESSFUL CONCLUSION MR KOHL WAS QUOTED BY THE WELT AM SONNTAG NEWSPAPER IN AN INTERVIEW PUBLISHED SUNDAY MR KOHL REAFFIRMED THE INTEREST OF GERMANY AND FRANCE IN ATTAINING A GLOBAL TRADE LIBERALIZATION PACT UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE INCLUDING THE DIFFICULT AGRICULTURAL SECTOR BUT HE WAS QUOTED AS SAYING THAT WE WANT A BALANCED COMPROMISE IN ALL AREAS OF THE GATT NEGOTIATIONS A POSITION OF ALL OR NOTHING IS NOT MOVING FORWARD A SIMILAR ASSURANCE FROM MR KOHL AFTER A MEETING IN BONN ON THURSDAY WITH FRENCH PRIME MINISTER EDOUARD BALLADUR BROUGHT A SHARP WARNING FROM THE US AGAINST ATTEMPTS TO CHANGE THE FARMTRADE AGREEMENT MR KOHL HAD SAID HE SYMPATHIZED WITH FRANCE'S NEED FOR A COMPROMISE AND THAT GERMANY ALSO HAD PROBLEMS WITH THE FARM ACCORD THE SOCALLED BLAIR HOUSE COMPROMISE SET IN WASHINGTON LAST NOVEMBER CALLS FOR A 21 REDUCTION IN SUBSIDIZED FARM EXPORTS OVER SIX YEARS THE AGREEMENT CONSIDERED AN IMPORTANT STEP TOWARD A BROADER WORLD TRADE PACT HAS BEEN REJECTED BY FRANCE AND HASN'T BEEN ADOPTED A REVERSAL IN BONN'S SUPPORT FOR BLAIR HOUSE WOULD ADD FRESH DOUBTS OVER WHETHER THE DEADLOCKED URUGUAY ROUND OF TALKS FOR A GLOBAL GATT CAN BE REACHED BY A DEC 15 DEADLINE ECONOMISTS ASSERT THAT AN AGREEMENT TO REDUCE TRADE BARRIERS IS THE KEY TO REVIVING SLUGGISH ECONOMIES AND CREATING JOBS IN THE 1990S IN WASHINGTON ON FRIDAY MR KOHL'S COMMENTS PROMPTED THE OFFICE OF THE US TRADE REPRESENTATIVE TO WARN AGAINST ANY ATTEMPT TO REWORK THE BLAIR HOUSE ACCORD IT IS UNCLEAR TO US AT THIS TIME WHETHER THESE STATEMENTS MEAN THAT THE EC IS CONSIDERING A CHANGE IN ITS SUPPORT FOR BLAIR HOUSE BUT OBVIOUSLY THIS WOULD CAUSE GRAVE CONCERNS THE TRADE OFFICE SAID IN A STATEMENT IT EXPRESSED CONFIDENCE THAT THE EC WOULD LIVE UP TO ITS AGREEMENT THE EC MUST RECOGNIZE THAT BLAIR HOUSE WAS ITSELF A PAINFUL COMPROMISE AND THAT MANY US FARM GROUPS WOULD LIKE EVEN DEEPER CUTS IN EC SUBSIDIES REOPENING THIS ISSUE POSES THE SERIOUS RISK OF UNRAVELING THE URUGUAY ROUND AND REVIVING THE OILSEEDS DISPUTE OVER EC SUBSIDIES OF SOYBEANS AND OTHER OILSEEDS THE TRADE OFFICE SAID OTHER GERMAN OFFICIALS HAVE SOUGHT TO PLAY DOWN MR KOHL'S REMARKS WHICH APPARENTLY EVEN CAUGHT MEMBERS OF HIS GOVERNMENT OFF BALANCE HIS PLEDGE APPEARED TO CONFLICT WITH GERMANY'S EXPRESSED COMMITMENT TO THE AGREEMENT AS THE BEST ATTAINABLE ADDING TO THE CONFUSION WAS THE UNCLEAR NATURE OF FRANCE'S DEMANDS AND WHETHER THEY WOULD REQUIRE RENEGOTIATION OF BLAIR HOUSE FOREIGN MINISTER KLAUS KINKEL AND GOVERNMENT SPOKESMAN NORBERT SCHAEFER HAVE DECLARED SINCE THURSDAY THAT GERMANY HAS NO INTENTION OF SEEKING TO REOPEN THE FARM AGREEMENT SENIOR OFFICIALS IN MR KINKEL'S FREE DEMOCRATIC PARTY MR KOHL'S JUNIOR COALITION PARTNER HAVE CRITICIZED MR KOHL FOR ANGERING TRADING PARTNERS AND PLACING BONN POLICIES IN DOUBT MR KOHL'S GESTURE APPEARS TO BE PART OF AN EFFORT TO PATCH STRAINED GERMANFRENCH RELATIONS AFTER GERMAN MONETARY POLICIES HELPED TRIGGER EUROPE'S CURRENCY CRISIS IN LATE JULY THAT PUMMELED THE FRENCH FRANC AND CAST DOUBT OVER A FUTURE EUROPEAN MONETARY AND POLITICAL UNION MR KOHL ALSO TOLD THE WELT AM SONNTAG THAT THE FRENCHGERMAN RELATIONSHIP REPRESENTS THE CORE OF EUROPEAN UNITY EFFORTS HE SAID HOWEVER THAT HE AND MR BALLADUR AGREED THAT THE TIMING OF EUROPEAN MONETARY UNION WASN'T AS IMPORTANT AS THE NEED FOR EC COUNTRIES TO FIRST FULFILL THE STRICT ECONOMIC CRITERIA WHICH HE SAID WOULDN'T BE SOFTENED AS INDEFINITE AS MR KOHL'S PUBLIC REMARKS WERE THE FRENCH GOVERNMENT WAS SEEN AS COMING AWAY WITH IMPORTANT GERMAN SUPPORT FOR GETTING THE FARM PACT RENEGOTIATED FRANCE IS HOME TO EUROPE'S LEADING AGRICULTURAL INDUSTRY AND A MILITANT FARM LOBBY A GERMANFRENCH WORKING GROUP REPORTEDLY WILL BEGIN MEETING SOON TO DISCUSS FRANCE'S PROPOSALS ANY CHANGES WOULD LIKELY BE AIRED AT A MEETING OF EC FOREIGN AND AGRICULTURAL MINISTERS SET FOR SEPT 20 A PREPARATION FOR AN EC SUMMIT IN OCTOBER MR KOHL'S PUBLIC SUPPORT ON FARM SUBSIDIES COMES AT A CRUCIAL TIME FOR MR BALLADUR'S GOVERNMENT WHICH FACES A NEW ESCALATION IN THE ANTIGATT CAMPAIGN BY ANGRY FRENCH FARMERS NEXT MONTH ORGANIZERS OF FRANCE'S RURAL COORDINATION FARM LOBBY PLAN TO BLOCKADE ROADS TO PARIS BEGINNING SEPT 15 WITH BARRIERS AND FARM MACHINERY TO PROTEST SUBSIDY CUTS 9308300031 930820 CORRUPT CAPITAL THE BCCIS YET TO COME BY JAMES RING ADAMS THE TRIAL OF ROBERT ALTMAN IS OVER BUT THE POLITICAL PATHOLOGY THAT PRODUCED THE BCCI CASE AND A HOST OF OTHER HIGHLY EXPENSIVE FINANCIAL DEBACLES IS THRIVING A JURY DECIDED THAT MR ALTMAN DIDN'T BREAK A LAW WHEN HE ACTED AS AN INTERLOCUTOR BETWEEN WASHINGTON DC'S LARGEST BANK CHAIN AND THE COLOSSAL GLOBAL FRAUD THAT WAS THE BANK FOR CREDIT AND COMMERCE INTERNATIONAL THAT ISSUE IS PROBABLY SETTLED FOR NOW BOTH FOR HIM AND FOR HIS MENTOR WASHINGTON SUPERLAWYER CLARK CLIFFORD BUT THE SPATE OF SECONDGUESSING THAT FOLLOWED MR ALTMAN'S ACQUITTAL LARGELY OVERLOOKED A MORE SERIOUS ISSUE IN THE COURSE OF ITS CAREER AS CENTRAL BANKER TO THE DRUG TRADE INTERNATIONAL TERRORISM AND THE WORLD'S GRAY MARKET IN ARMS BCCI ALSO TOOK IN BILLIONS FROM THIRDWORLD SMALL BUSINESSMEN AND NATIONAL TREASURIES IT LOST BY CURRENT ESTIMATES 12 BILLION OF ITS 20 BILLION IN DEPOSITS AND COVERED IT UP AS LONG AS IT COULD VERY FEW OF BCCI'S VICTIMS LIVED IN THE US A PROBLEM FOR THE PROSECUTION OF MR ALTMAN AND MR CLIFFORD YET THE FINANCIAL PATTERN IN BRITAIN FOR EXAMPLE WAS MUCH THE SAME AS THE S&L DEBACLE WHERE MANY AVERAGE CITIZENS HAVE SUFFERED AS INVESTORS FORECLOSED BORROWERS AND MOST BROADLY TAXPAYERS THESE DISASTERS REACHED SUCH PROPORTIONS BECAUSE THE CROOKED BANKERS SHUNTED SOME OF THEIR GAIN TOWARD POLITICAL FRIENDS AND THEN USED THESE FRIENDS TO SHIELD THEMSELVES FROM INVESTIGATION WHEN BCCI WAS FIRST EXPOSED AS AN AGENT FOR DRUG LORDS IN A MONEY LAUNDERING INDICTMENT IN TAMPA MR ALTMAN USED HIS INFLUENCE IN WASHINGTON TO PROTECT THE REPUTATION OF ITS SENIOR OFFICERS HE EVEN ACCORDING TO EVIDENCE UNDISPUTED EVEN BY THE SENATOR DRAFTED A STATEMENT DELIVERED IN THE SENATE BY UTAH'S ORRIN HATCH THIS WASN'T BREAKING THE LAW BUT THE PRESSURE CREATED A POLITICAL CLIMATE THAT DISCOURAGED CAREER BUREAUCRATS FROM STICKING OUT THEIR NECKS TO INVESTIGATE CRIMES MANHATTAN'S DISTRICT ATTORNEY ROBERT MORGENTHAU FREQUENTLY RECEIVED LITTLE SUPPORT FROM THE JUSTICE AND STATE DEPARTMENTS IN HIS ATTEMPTS TO GATHER EVIDENCE FOR THIS WIDERANGING CASE THERE HAS BEEN A SPATE OF ARTICLES THIS WEEK ABOUT THE TARNISHED REPUTATION OF MR MORGENTHAU FOR PROSECUTING MR ALTMAN THESE COME IN PARTICULAR FROM THOSE WASHINGTON WATCHDOGS WHO SHRUGGED OFF THE MANY COURTROOM REVERSALS OF IRANCONTRA SPECIAL PROSECUTOR LAWRENCE WALSH BUT IT WAS MR MORGENTHAU WHO BROKE THE BCCI CASE WHEN THE FEDERAL GOVERNMENT LOST INTEREST MR MORGENTHAU IS THE WRONG TARGET OF CRITICISM WHEN HE FACES SO MANY LEADS THAT THE FEDERAL GOVERNMENT IS LESS DISPOSED THAN EVER TO FOLLOW CRIMINAL CHARGES IN THE CASE FOR INSTANCE ARE STILL PENDING AGAINST SAUDI BUSINESSMEN KHALID BINMAHFOUZ AND GHAITH PHARAON WHOSE AMERICAN PARTNERS HAVE INCLUDED A SON OF GEORGE BUSH THE LATE JOHN CONNALLY AND MIAMI S&L CHAIRMAN DAVID PAUL REGULATORS SAY BCCI HELPED PROLONG THE LIFE OF MR PAUL'S CENTRUST SAVINGS BANK WHOSE COLLAPSE LEFT US TAXPAYERS WITH A LOSS OF AT LEAST 17 BILLION THERE ARE ALSO QUESTIONS ABOUT MR PHARAON'S AND BCCI'S INVOLVEMENT IN THE TAKEOVER OF BERT LANCE'S NATIONAL BANK OF GEORGIA WHICH BECAME A UNIT OF MESSRS ALTMAN AND CLIFFORD'S FIRST AMERICAN BANKSHARES MR LANCE BECAME A SALARIED AGENT OF BCCI RIGHT AFTER HE RESIGNED AS JIMMY CARTER'S BUDGET DIRECTOR AND THERE ARE MYRIAD QUESTIONS ABOUT THE ACCESS HE GAVE THAT BANK TO DEMOCRATIC POLITICAL NETWORKS MR LANCE WORKED WITH LITTLE ROCK BROKER JACKSON STEPHENS TO ARRANGE THE FIRST UNSUCCESSFUL BCCI RUN AT THE WASHINGTON BANK THAT MESSRS ALTMAN AND CLIFFORD LATER SUCCEEDED IN TAKING OVER JACK STEPHENS WAS THE POWER BEHIND WORTHEN BANKING CORP AND ARKLA GAS CO WHOSE OFFICERS INCLUDING THE PRESIDENT'S CHIEF OF STAFF NOW LINE THE WHITE HOUSE HE WAS AND IS AN IMPORTANT CLIENT OF THE ROSE LAW FIRM WHICH ONCE EMPLOYED HILLARY CLINTON BCCI'S INFLUENCE SPREAD THROUGH GOP NETWORKS AS WELLINCLUDING BUSINESS PARTNERS OF GEORGE WALKER BUSH THE FORMER PRESIDENT'S SON AND SEN HATCH THE MERE FACT THAT SO MANY WELLCONNECTED FIGURES HAVE BEEN INVOLVED WITH THE BCCI CASE GOES FAR TO EXPLAIN WHY WASHINGTON WAS RELUCTANT TO PURSUE THE CASE THE MANHATTAN DISTRICT ATTORNEY PICKED UP THE INVESTIGATION BY DEFAULT WHEN THE JUSTICE DEPARTMENT AND EVEN THE SENATE SEEMED WILLING TO LET IT DROP IF PRESIDENT CLINTON HAS MADE ONE THING CLEAR IT IS THAT HE IS LESS INTERESTED THAN EVEN HIS PREDECESSOR IN ROOTING OUT POLITICAL CORRUPTION THAT TASK WAS THE WEAKEST PART OF HIS ATTORNEY GENERAL'S RESUME MR CLINTON HAS CONSISTENTLY SIDED WITH BANKERS AGAINST THE REGULATORS SOME OF WHOM HAVE GIVEN MR STEPHENS QUITE A HARD TIME THERE IS EVEN AN OMINOUS TINGE TO THE CURRENT PROPOSAL TO UNIFY FEDERAL LAW ENFORCEMENT AGENCIES UNDER THE JUSTICE DEPARTMENT SINCE IT WOULD ELIMINATE THE INTERSERVICE RIVALRY THAT HAS HELPED TO KEEP SOME PAST INVESTIGATIONS OPEN TO JUDGE FROM THE REACTION TO THE ALTMAN VERDICT THIS PERMISSIVE ATTITUDE TOWARD CORRUPTION IS NOW SEEPING INTO THE PRESS AND THE CIRCLES OF PROPER OPINION BUT THE QUESTIONS FROM THE BCCI CASE REMAIN UNANSWERED AND THE POSSIBILITY THAT WASHINGTON CRONYISM WILL FURTHER PERVERT REPRESENTATIVE GOVERNMENT SEEMS GREATER THAN EVER MR ADAMS IS BUSINESS EDITOR OF THE WATERBURY CONN REPUBLICANAMERICAN AND THE COAUTHOR WITH DOUGLAS FRANTZ OF A FULL SERVICE BANK HOW THE BCCI STOLE BILLIONS AROUND THE WORLD SIMON & SCHUSTER 1992 SEE RELATED LETTER LETTERS TO THE EDITOR ARKLA AND STEPHENS WSJ AUG 30 1993 9308200038 YY93 MM08 9308300030 930830 BUSINESS BRIEF SOUTHWEST GAS CORP REGULATORS DENY INCREASE IN RATES THEN ORDER CUT NEVADA UTILITY REGULATORS DENIED SOUTHWEST GAS CORP'S REQUEST FOR AN 84 OR 94 MILLION RATE INCREASE FOR ITS SOUTHERN NEVADA DIVISION ORDERING THE COMPANY INSTEAD TO LOWER RATES BY ABOUT 672000 OR HALF A PERCENT THE NEVADA PUBLIC SERVICE COMMISSION DID APPROVE AN INCREASE IN RATES FOR THE LAS VEGAS COMPANY'S NORTHERN DIVISION OF 768000 OR 2 ALTHOUGH THE COMPANY HAD REQUESTED A 33 MILLION OR 9 RISE THE NEW RATES TOOK EFFECT THIS WEEKEND SOUTHWEST GAS HAS ABOUT 200000 CUSTOMERS IN SOUTHERN NEVADA AND 65000 IN NORTHERN NEVADA AMONG OTHER THINGS THE COMMISSION REFUSED TO ALLOW SOUTHWEST GAS TO PASS ON TO CUSTOMERS THE COST OF OWNING AND OPERATING TWO CORPORATE AIRCRAFT THE COMMISSION ALSO ORDERED A MANAGEMENT STUDY OF SOUTHWEST GAS'S EXECUTIVE COMPENSATION AND BENEFITS SOUTHWEST GAS OFFICIALS WEREN'T IMMEDIATELY AVAILABLE FOR COMMENT 9308300029 930830 BUSINESS BRIEFS OIS OPTICAL IMAGING SYSTEMS INC SIGNED A TWOYEAR 48 MILLION AGREEMENT WITH THE US GOVERNMENT TO DESIGN AND BUILD A PILOT DEMONSTRATION FACILITY FOR HIGHYIELD PRODUCTION OF ACTIVE MATRIX LIQUID CRYSTAL DISPLAYS THEY CAN BE USED IN MILITARY AVIONIC AND COMMERCIAL APPLICATIONS COMINCO RESOURCES INTERNATIONAL LTD A SUBSIDIARY OF COMINCO LTD VANCOUVER BRITISH COLUMBIA AGREED TO SELL ITS 50 STAKE IN THE LOBO GOLD DEPOSIT IN CHILE TO TECK CORP FOR 158 MILLION USMX INC SOLD ITS ALLIGATOR RIDGE GOLDPRODUCTION PROPERTIES IN NEVADA TO PLACER DOME INC'S US UNIT FOR 15 MILLION PLUS ASSUMPTION OF RECLAMATION LIABILITIES CURRENTLY ESTIMATED BY USMX AT 2 MILLION PROCEEDS WILL BE USED FOR EXPLORATION AND DEVELOPMENT IN LATIN AMERICA 9308300028 930830 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ADESA CORP AN OFFERING OF 25 MILLION COMMON SHARES VIA WILLIAM BLAIR & CO AND ROBINSONHUMPHREY CO DAIMLERBENZ AMERICA CORP A UNIT OF DAIMLERBENZ AG AN ASSET SECURITIZATION PROGRAM IN THE US TERMS WEREN'T DISCLOSED ODETICS INC AN OFFERING OF UP TO 1150000 CLASS A COMMON SHARES VIA CRUTTENDEN & CO STONECONSOLIDATED CORP AN OFFERING OF 200 MILLION OF SENIOR SECURED NOTES AND 125 MILLION OF SENIOR UNSECURED NOTES MERIDIAN DIAGNOSTICS INC REGISTERED TO OFFER 8 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES VIA OHIO CO AND RONEY & CO VENTRITEX INC AN OFFERING OF ITS 1335000 COMMON SHARES VIA ROBERTSON STEPHENS & CO HAMBRECHT & QUIST INC AND COWEN & CO 9308300027 930830 INDONESIA'S ASTRA POSTS 50 RISE IN PROFIT FOR HALF BY RICHARD BORSUK STAFF REPORTER OF THE WALL STREET JOURNAL JAKARTA PT ASTRA INTERNATIONAL FORECAST A STRONG REBOUND IN PROFIT AS THE INDONESIAN AUTO MAKER'S SHARES CONTINUED TO ADVANCE ON THE JAKARTA STOCK EXCHANGE AS EXPECTED ASTRA ALSO WON APPROVAL FROM SHAREHOLDERS FRIDAY FOR THE APPOINTMENT OF AR RAMLY AS CHAIRMAN AT THE SHAREHOLDERS MEETING ASTRA REPORTED THAT NET INCOME FOR THE FIRST HALF OF 1993 SURGED 50 TO 6389 BILLION RUPIAH 305 MILLION FROM A YEAR EARLIER SALES INCREASED 19 TO 252 TRILLION RUPIAH THE COMPANY FORECAST THAT PROFIT FOR THE FULL YEAR WOULD BE 57 HIGHER THAN THE 8149 BILLION RUPIAH RECORDED FOR 1992 WHEN EARNINGS PLUNGED 61 RINI SOEWANDI FINANCE DIRECTOR SAID THIS YEAR IS PROVING MUCH MUCH BETTER FOR THE COMPANY THAN 1992 ON THE STOCK EXCHANGE ASTRA SHARES CLIMBED 17 LAST WEEK CLOSING FRIDAY AT 17450 RUPIAH AT THE BEGINNING OF THE YEAR ASTRA SHARES WERE TRADING AT LESS THAN 9000 RUPIAH ASTRA'S REBOUND HAS CONTRIBUTED HEAVILY TO AN OVERALL STOCK MARKET RALLY THAT CARRIED THE COMPOSITE INDEX ABOVE 400 LAST WEEK FOR THE FIRST TIME IN YEARS THE INDEX ENDED THE WEEK AT 40967 UP 49 SO FAR THIS YEAR FINANCE MINISTER MARIE MUHAMMAD WHILE WELCOMING GAINS IN THE MARKET CAUTIONED FRIDAY THAT IT COULD GET OVERHEATED SECURITIES ANALYSTS SAY ASTRA SHARES HAVE GAINED SHARPLY THIS YEAR FOR A VARIETY OF REASONS AMONG THEM ARE BETTER CAR SALES AND GENERAL ECONOMIC CONDITIONS INVESTORS' RELIEF THAT A SLIGHT RELAXATION IN CARIMPORT BARRIERS HASN'T HURT ASTRA AND TOYOTA MOTOR CORP'S ACQUISITION OF AN 83 STAKE IN THE INDONESIAN COMPANY IN JUNE MOREOVER ASTRA IS FINDING ITS FEET AGAIN AFTER LAST YEAR'S COLLAPSE OF THE BUSINESS EMPIRE OF THE FOUNDING SOERYADJAYA FAMILY THE SOERYADJAYAS HAD TO SELL NEARLY ALL OF THEIR HOLDING IN ASTRA TO COPE WITH LOSSES AT THE FAMILYOWNED BANK SUMMA WHOSE LICENSE WAS REVOKED IN DECEMBER MR RAMLY ASTRA'S NEW CHAIRMAN IS A FORMER HEAD OF THE STATE OIL COMPANY PERTAMINA AND A FORMER AMBASSADOR TO THE US HE FILLS THE VACANCY LEFT BY THE DEATH LAST MONTH OF OSKAR SURJAATMADJA ALSO A RETIRED GOVERNMENT OFFICIAL EARLIER THIS MONTH BUSINESS EXECUTIVES THOUGHT PRAJOGO PANGESTU WHO CONTROLS A VAST TIMBER AND PLYWOODMAKING EMPIRE WANTED THE ASTRA CHAIRMANSHIP BUT MR PRAJOGO ENDED UP SUPPORTING MR RAMLY WHOSE SELECTION WAS ENDORSED BY INDONESIAN PRESIDENT SUHARTO A WEEK BEFORE THE ASTRA MEETING MR PRAJOGO BECAME THE COMPANY'S SINGLE LARGEST SHAREHOLDER BUYING AN ADDITIONAL 39 STAKE TO RAISE HIS HOLDING TO 101 AT A NEWS CONFERENCE THE 66YEAROLD MR RAMLY SAID HE ISN'T CHARGED WITH CARRYING OUT ANY SPECIAL MISSION FOR THE GOVERNMENT WHICH CONTROLS NEARLY 25 OF ASTRA MR RAMLY IS ASTRA'S FOURTH CHAIRMAN IN A YEAR LAST SEPTEMBER FORMER TRADE MINISTER SUMITRO DJOJOHADIKUSUMO TOOK OVER FROM WILLIAM SOERYADJAYA ONLY TO QUIT IN DECEMBER AFTER REFUSING TO ENDORSE A SOERYADJAYA PROPOSAL TO SELL SHARES TO A GROUP OF BUSINESSMEN HEADED BY MR PRAJOGO MR SUMITRO WAS SUCCEEDED BY MR SURJAATMADJA 9308300026 930830 ENVIRONMENT DIRT DOCTORS UNEARTH SECRETS AFTER THE FLOOD BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL AMES IOWA INSIDE A BLUE US GOVERNMENT VAN JERRY LEE HATFIELD SHAKES HIS HEAD IN FRUSTRATION AS ANOTHER THUNDERSTORM ILLUMINATES A FARM HORIZON BRISTLING WITH WHITE SCIENTIFIC SENSORS AFTER NINE MONTHS OF DRENCHING RAIN SOME CORNFIELDS IN THESE PARTS HAVE SO MANY POTHOLES THEY LOOK AS THOUGH THEY'VE BEEN RAKED BY ARTILLERY THE SURVIVING CROPS ARE PALE AND STUNTED BECAUSE RAIN DELAYED PLANTING BY SEVERAL WEEKS WE'RE ONLY BEGINNING TO UNDERSTAND HOW COMPLICATED THE SOIL IS SAYS THE PLANT PHYSIOLOGIST AS THE STORM FORCES HIM TO DRIVE BACK TO THE FEDERAL LABORATORY HE HEADS ON THE IOWA STATE UNIVERSITY CAMPUS HERE HIS INSTRUMENTS UNCHECKED IT MIGHT BE THAT WAY TOO MUCH RAIN IS WORSE THAN TOO LITTLE HOW QUICKLY FIELDS SUCH AS THESE RECOVER AND WHAT THAT MEANS FOR THE FOOD SUPPLY AND ECONOMY IS ONE OF THE BIGGEST MYSTERIES IN THE WAKE OF THE RECORD RAIN THAT HAS FALLEN ACROSS MUCH OF THE MIDWEST THIS SUMMER THE ANSWERS PROBABLY WILL COME FIRST FROM THE NATIONAL SOIL TILTH LABORATORY WHERE MR HATFIELD 44 YEARS OLD IS ARGUABLY UNCLE SAM'S TOP DIRT DOCTOR THE FOURYEAROLD LABORATORY IS THE FIRST GOVERNMENT INSTITUTE TO BRING TOGETHER SUCH A DIVERSE GROUP OF SPECIALISTS AS ENGINEERS MATHEMATICIANS MICROBIOLOGISTS AND CHEMISTS TO FIGURE OUT HOW THE SOIL WORKS TO FIND OUT THE GOVERNMENT HAS DUG 200 HIGHTECH WELLS TO TRACK THE MOVEMENT OF WATER AND FARM CHEMICALS UNDER 64 FARMS A SPECIALLY DESIGNED TRACTOR RUMBLES OVER THE 12MILESQUARE AREA DRILLING FOURFOOTDEEP CORE SAMPLES THE STREAMS ARE EQUIPPED WITH SEDIMENTMEASURING SENSORS FRISBEESIZED CANISTERS SCATTERED OVER THE GROUND COLLECT THE GASES MADE BY MICROORGANISMS THE FARM BELT USUALLY REBOUNDS QUICKLY FROM NATURAL CALAMITIES SUCH AS DROUGHT WHAT THE NILE DID FOR ANCIENT EGYPT THE SWOLLEN MISSISSIPPI RIVER DID FOR SOME MISSOURI AND ILLINOIS FARMS THIS YEAR BY GIVING THEM RICH TOPSOIL BUT WITH THE MIDWEST'S SOILS TUNED TO HANDLING ABOUT HALF THIS SUMMER'S PRECIPITATION SOME SCIENTISTS WORRY THAT ONE LEGACY OF THE RAIN MIGHT WELL BE AN OVERALL DROP IN THE FERTILITY OF SOME OF THE WORLD'S BEST CROP LAND THE EARLY SIGNS AREN'T GOOD MANY OF THE FIELDS ARE SO SATURATED THAT EARTHWORMS WHOSE WASTE AND MUCUSLINED BURROWS ENRICH THE SOIL ARE RETREATING TO THE HIGHEST GROUND THE CONSTANT POUNDING OF THE TORRENTIAL RAIN HAS TURNED THE SURFACE INTO A CRUST THAT BLOCKS CRUCIAL OXYGEN FROM REACHING BENEFICIAL MICROORGANISMS SOME OF THE OXYGENDEPENDENT BACTERIA HELP CROPS MINE NUTRIENTS FROM THE SOIL MEANWHILE MANY OF THE MICROORGANISMS THAT COMPETE WITH PLANTS FOR NITROGEN ARE FLOURISHING BECAUSE THEY DON'T NEED OXYGEN WORST OF ALL THE RAIN SEEMS TO HAVE PUSHED SOME NUTRIENTS SEVERAL FEET BELOW ROOTS AT A TIME WHEN THE DEMAND BY CROPS WAS PEAKING SOME ANECDOTAL EVIDENCE SUGGESTS THAT SOYBEAN YIELDS DROP ROUGHLY 15 AFTER THE GROUND IS SATURATED BUT THE STUDY OF SOIL HEALTH OR TILTH IS SO YOUNG THAT PROJECTING THE ECONOMIC FALLOUT IS IMPOSSIBLE THAT MEANS MORE GUESSWORK THAN USUAL IS GOING INTO THE MONTHLY AGRICULTURE DEPARTMENT HARVEST FORECASTS ON WHICH FOOD COMPANIES AND FOREIGN BUYERS HEAVILY RELY THE PROBLEM IS WE HAVEN'T LIVED THROUGH ANYTHING LIKE TIS BEFORE SAYS DANIEL W BASSE DIRECTOR OF RESEARCH AT AGRESOURCE CO IN CHICAGO WE REALLY WON'T KNOW WHAT IS HAPPENING UNTIL OCTOBER WHEN THE GROWING SEASON ENDS ANY GARDENER UNDERSTANDS THAT GOOD CROPS NEED GOOD SOIL BUT THE RAINY YEAR UNDERSCORES HOW LITTLE AGRICULTURAL EXPERTS KNOW ABOUT HOW THAT HAPPENS OR EVEN HOW TO MEASURE THE GOOD IN SOIL A LOT OF EXPERIENCE WAS LOST AFTER WORLD WAR II WHEN FERTILIZERS AND PESTICIDES CAUSED YIELDS TO JUMP SO HIGH THAT FARMERS BEGAN LOOKING AT DIRT AS LITTLE MORE THAN A SPONGE FOR CHEMICALS THE SOIL TILTH LABORATORY WHICH GETS 5 MILLION ANNUALLY FROM THE AGRICULTURE DEPARTMENT WASN'T BUILT UNTIL 30 YEARS AFTER THE IDEA WAS FIRST PROPOSED IN THE SENATE WE SPENT ALL OF OUR TIME LOOKING AT MODERN TECHNOLOGY SAYS DENNIS KEENEY AN AGRONOMY PROFESSOR AT IOWA STATE UNIVERSITY WE DIDN'T WORRY ABOUT THE SOIL BECAUSE IT WAS ALWAYS THERE WHAT CHANGED IS THAT THE REST OF THE WORLD ADOPTED ENOUGH OF THE SAME TECHNOLOGY TO REDUCE US CROP EXPORTS WEAKER GRAIN PRICES ARE NOW FORCING US FARMERS TO LOOK FOR WAYS TO SHRINK EXPENSES OF WHICH CHEMICALS ARE A BIG CHUNK THAT DOVETAILS WITH PUBLIC PRESSURE ON FARMERS TO CUT BACK ON THE USE OF FARM CHEMICALS SOME OF WHICH ARE MOVING INTO THE WATERWAYS FROM WHICH MIDWEST TOWNS DRINK MOSTLY WHAT RESEARCHERS HERE HAVE DISCOVERED SO FAR IS THAT THE SOIL A GRAM OF WHICH HARBORS A BILLION MICROORGANISMSIS MUCH MORE COMPLICATED THAN ANYBODY HAD THOUGHT PROBABLY THEIR BIGGEST GOAL IS TO UNDERSTAND WHY CROPS DON'T ABSORB ABOUT HALF OF THE NITROGEN THAT FARMERS APPLY TO THEIR FIELDS THAT COULD LEAD TO A BETTER WAY OF GETTING FERTILIZER INTO CROPS WHICH WOULD REDUCE RUNOFF WITHOUT SACRIFICING YIELD ANOTHER DISCOVERY IS THAT SIMPLY DRIVING A TRACTOR ACROSS A FIELD REDUCES YIELDS BY PACKING DOWN THE SOIL THAT HAS LED TO RESEARCH ON NEW TYPES OF WEIGHTDISPERSING TRACKS RESEARCHERS ALSO HAVE LEARNED THAT YIELDS VARY AS MUCH AS 50 ACROSS A FARM AS SOIL CONDITIONS CHANGE THAT MEANS THE CURRENT PRACTICE OF EVENLY APPLYING FERTILIZER AND PESTICIDES DOESN'T MAKE MUCH SENSE AS A RESULT THE LABORATORY IS EXPERIMENTING WITH USING SATELLITES TO GUIDE COMPUTERIZED TRACTORS THAT CAN PORTION OUT CHEMICALS OVER AN AREA MEASURED IN INCHES THE DEFENSE DEPARTMENT ALREADY HAS THE SATELLITES FLYING AND A FARMER CAN BUY THE GROUND EQUIPMENT FOR 50000 SUCH PRESCRIPTION FARMING WOULD DEPRESS THE ALREADYFLAT SALES OF THE FARM CHEMICAL INDUSTRY BUT SOME SUPPLIERS SUPPORT THE GOVERNMENT LABORATORY IN THE HOPE RESEARCHERS WILL GIVE THEM A NEW TECHNOLOGY AND SERVICE TO SELL FARMING BY RULES OF THUMB WE'VE FARMED FOR A LONG TIME BY RULES OF THUMB BECAUSE THERE IS SO MUCH ABOUT THE SOIL WE HAVEN'T KNOWN SAYS ROBERT H BECK MANAGER OF CROP PRODUCTION AT CENEX/LAND O'LAKES A FARMEROWNED SUPPLY COOPERATIVE BASED IN MINNEAPOLIS THE WAY TO EXPAND IN THE FUTURE IS TO SHOW FARMERS HOW TO BE MORE EFFICIENT BUT RIGHT NOW SCIENTISTS ARE WORRIED THAT THE EXCESSIVE RAIN WILL UNRAVEL THE PROGRESS THEY HAVE MADE MANY FARMERS PROBABLY WILL APPLY AS MUCH FERTILIZER AS BEFORE TO REBUILD FIELDS THE RAIN ALSO MIGHT SLOW THE TREND AMONG FARMERS TO TILL THEIR FIELDS LESS THE CROP STUBBLE IN NOTILL FIELDS PREVENTS EROSION AND CONSERVES MOISTURE DURING DROUGHTS AS A RESULT THE NOTILL FIELDS HAVE BEEN AMONG THE WETTEST IN THE MIDWEST THIS YEAR THE CONVENTIONALLY PLOWED FIELDS OUT OF FAVOR WITH SCIENTISTS ARE DRYING THE FASTEST DR HATFIELD RECOMMENDS THAT MIDWEST FARMERS TAKE THE UNUSUAL STEP OF SOWING SOME SORT OF COVER CROP SUCH AS OATS OR WHEAT THIS FALL THE EIGHT MILLION ACRES WASHED OUT BY FLOODING IS MOSTLY BARE AND HIGHLY VULNERABLE TO WIND EROSION 9308300025 930830 BUSINESS BRIEF PNC BANK CORP UNITED BANK OF PHILADELPHIA GETS HELP TO BUY BRANCHES PNC BANK CORP SAID IT ASSUMED ABOUT 35 MILLION IN DEPOSIT LIABILITIES FROM UNITED BANK OF PHILADELPHIA ENABLING UNITED TO ACQUIRE TWO BRANCHES OF HOME UNITY FEDERAL SAVINGS AND LOAN ASSOCIATION FROM THE RESOLUTION TRUST CORP PITTSBURGHBASED PNC POINTING OUT THAT UNITED BANK IS MINORITYOWNED SAID THE TRANSACTION IS ONE OF THE FIRST COLLABORATIONS BETWEEN A MINORITYOWNED AND MAJOR COMMERCIAL BANK TO ENABLE THE MINORITYOWNED BANK TO PURCHASE BRANCHES OF A FAILED THRIFT THROUGH THE RTC AS A RESULT OF THE TRANSACTION A FORMER HOME UNITY BRANCH WILL OPEN FOR BUSINESS TODAY AS A PNC BANK BRANCH AND TWO OTHER BRANCHES WILL OPEN AS UNITED BANK OFFICES PNC WHICH PREVIOUSLY INVESTED IN UNITED BANK SAID IT WILL MAKE AN ADDITIONAL INVESTMENT IN UNITED IF NECESSARY TO ATTAIN SPECIFIED CAPITAL LEVELS BY YEAR END 9308300024 930830 LETTERS TO THE EDITOR THREEFIFTHS CLAUSE' FOILED SLAVEHOLDERS YOUR AUG 4 EDITORIAL THE 3/5 MEMBER CITED THE THREEFIFTHS CLAUSE OF THE CONSTITUTION AS THE GREATEST STAIN ON AMERICA'S FOUNDING AND WENT ON TO SAY THAT THANKS TO THE CIVIL WAR WE NO LONGER HAVE THREEFIFTHS PERSONS IT IS TRUE TO SAY THAT THE CONTINUED EXISTENCE OF SLAVERY WAS THE GREATEST STAIN ON THE AMERICAN FOUNDING BUT IT IS MISTAKEN TO THINK THAT ANY CLAUSE OF THE CONSTITUTION EVER ESTABLISHED A CATEGORY OF THREEFIFTHS PERSONS ONE CAN UNDERSTAND WHY ACTIVISTS WITH AN RACIAL AX TO GRIND WOULD ASSERT THAT THE FOUNDERS CONSIDERED SLAVES TO BE THREEFIFTHS OF A PERSON BUT WHY SHOULD YOU FALL FOR THIS DISTORTION ESPECIALLY WHEN IT IS SO OBVIOUS AND SO EASY TO DEMONSTRATE THAT THE THREEFIFTHS CLAUSE HAD NO SUCH MEANING YOU JUST HAVE TO IMAGINE YOURSELF A DELEGATE TO THE CONSTITUTIONAL CONVENTION BACK IN 1787 AND ASK YOURSELF WHO WILL BENEFIT IF I VOTE TO COUNT EVERY SLAVE FOR PURPOSES OF REPRESENTATION WHEN IT WAS AGREED IN THE CONVENTION THAT THE HOUSE OF REPRESENTATIVES WOULD BE APPORTIONED BY POPULATION THE NEXT QUESTION WAS WHOM TO COUNT THE HIGHER THE POPULATION COUNT THE MORE CONGRESSMEN FROM THAT STATE THE SLAVEHOLDING SOUTHERN DELEGATES THEREFORE ARGUED THAT EVERY SLAVE SHOULD BE COUNTED JUST THE SAME AS ANY FREE CITIZEN NOT BECAUSE THEY THOUGHT SLAVES WERE EQUAL TO THEIR MASTERS BUT BECAUSE THEY WANTED MORE VOTES IN THE HOUSE NORTHERN DELEGATES WHO DENOUNCED THE IDEA OF PROPERTY IN HUMAN BEINGS AS AN ABOMINATION ARGUED THAT SLAVES SHOULD NOT BE COUNTED AT ALL THEY KNEW FULL WELL THAT SLAVES WERE PERSONS THEIR MOTIVE FOR NOT COUNTING SLAVES WAS TO REDUCE THE CONGRESSIONAL VOTING POWER OF SLAVEHOLDERS IF ALL OF THE SLAVES HAD BEEN INCLUDED IN THE COUNT THE SLAVE STATES WOULD HAVE HAD 50 OF THE SEATS IN THE HOUSE UNACCEPTABLE TO THE NORTH IF NONE HAD BEEN COUNTED THE SLAVE STATES WOULD HAVE HAD ONLY 41 UNACCEPTABLE TO THE SOUTH THE THREEFIFTHS COMPROMISE LEFT THE SOUTH WITH 47 NOT NEGLIGIBLE BUT STILL A MINORITY ONE WOULD EXPECT TO BE OUTVOTED ON SLAVERY ISSUES THE TRUE CHARACTER OF THE FOUNDING IS BEST SEEN BY NOTING THAT THE WORD SLAVE WAS SCRUPULOUSLY KEPT OUT OF THE CONSTITUTION THAT IN IT THERE IS NO WORD DENOTING RACE OR COLOR AND THAT ALTHOUGH SLAVERY WAS NOT AND PROBABLY COULD NOT BE ERADICATED AT THAT TIME IN ALL THE PLACES WHERE SLAVES ARE OBVIOUSLY BEING REFERRED TO THEY ARE INVARIABLY CALLED PERSONS 9308300023 930830 SUCCESSION DISPUTE IS SAID TO DEFINE MCCAIN LAWSUIT FLORENCEVILLE NEW BRUNSWICK TWO BROTHERS WHO TOGETHER BUILT MCCAIN FOODS LTD INTO ONE OF CANADA'S BIGGEST CLOSELY HELD COMPANIES HAVE FOUGHT OVER CONTROL OF THE BUSINESS BECAUSE OF A SUCCESSION DISPUTE ACCORDING TO A SUIT FILED BY ONE OF THEM WALLACE MCCAIN 63 YEARS OLD CHARGES THAT HIS 65YEAROLD BROTHER HARRISON USED INTIMIDATION OF FAMILY MEMBERS TO TRY TO CONTROL THE PROCESS OF SUCCESSION UNDERMINING AN AGREEMENT THAT CALLED FOR THEM TO REMAIN COCHIEF EXECUTIVES UNTIL TURNING 75 YEARS OLD IN A STATEMENT HARRISON MCCAIN SAID IT'S TIME FOR TRANSITION AT THE MAKER OF FROZEN FOODS STARTED IN 1957 BY HARRISON WALLACE AND TWO OLDER BROTHERS THREE FAMILIES THAT INCLUDE MOST OF THE SHAREHOLDERS THINK SO WALLACE'S FAMILY HAS A DIFFERENT OPINION A NEW BRUNSWICK JUDGE'S ORDER PROHIBITING PUBLICATION OF THE COURT FILINGS WAS LIFTED LATE LAST WEEK WALLACE MCCAIN ALLEGES THAT HARRISON'S ACTIONS STEMMED PARTLY FROM AN IRRATIONAL FEAR THAT WALLACE'S SON MICHAEL WHO RUNS THE COMPANY'S US OPERATION MIGHT BE IDENTIFIED AS THE MOST CAPABLE SUCCESSOR HARRISON ALSO HAS CHILDREN WHO WORK IN THE BUSINESS HARRISON MCCAIN SAID THAT FAMILY MEMBERS WANT THE BEST PERSON FOR THE JOB FROM INSIDE OR OUTSIDE MCCAIN FOODS HAD C3 BILLION US228 BILLION IN WORLDWIDE SALES IN ITS LATEST FISCAL YEAR 9308300022 930830 BUSINESS BRIEF NATIONAL STEEL CORP STEELWORKERS UNION RATIFIES SIXYEAR PACT WITH CONCERN MEMBERS OF THE UNITED STEELWORKERS OF AMERICA EMPLOYED BY NATIONAL STEEL CORP RATIFIED A SIXYEAR CONTRACT THAT GIVES WORKERS REPRESENTATION ON THE COMPANY'S BOARD THE ACCORD REACHED EARLIER THIS MONTH AVERTED A STRIKE AT THE STEELMAKER AND GUARANTEES WORKERS EMPLOYMENT SECURITY FOR THE LIFE OF THE PACT 9308300021 930830 ITALIAN PRODUCER PRICES RISE ROME ITALY'S PRODUCER PRICE INDEX ROSE 04 IN JUNE FROM MAY AND WAS UP 41 FROM THE YEAR EARLIER THE STATE STATISTICAL OFFICE ISTAT SAID THE INCREASE COMPARES WITH A 02 RISE IN MAY OVER APRIL WHEN THE YEARONYEAR RAISE WAS 39 MEANWHILE ISTAT SAID WHOLESALE PRICES IN JUNE WERE UP 01 OVER MAY AND UP 53 FROM THE YEAR EARLIER THE RISE IN JUNE COMPARES WITH A FALL OF 03 IN MAY FROM APRIL IN MAY WHOLESALE PRICES REGISTERED A 49 YEARONYEAR INCREASE 9308300020 930830 LETTERS TO THE EDITOR SCOUTS SHOULD DO THE HONORABLE THING YOUR AUG 12 EDITORIAL THE PRESIDENT AND THE BOY SCOUTS TAKES THE WRONG PARTY TO TASK AS DO MOST COMMENTARIES ON THIS ISSUE THE CLOSEDMINDED LEADERS OF THE BOY SCOUTS ARE WHAT IS HURTING THIS ADMIRABLE INSTITUTION BY RISKING IT ALL TO PRESERVE THEIR POLICIES OF EXCLUSION I WAS A BOY SCOUT AND BENEFITED GREATLY FROM THE EXPERIENCE FOR ALL OF THE REASONS YOU DESCRIBE IN YOUR EDITORIAL THE HARSH FACT IS THAT IF IT WAS KNOWN THAT I WAS GAY OR IF I WAS AN ATHEIST I WOULD LIKELY HAVE BEEN DENIED THAT BENEFIT THAT POLICY IS WRONG AND SOONER OR LATER IT WILL BE WIDELY RECOGNIZED AS WRONG PRESIDENT CLINTON IF THAT WAS INDEED THE MOTIVATION FOR HIS ABSENCE IS PERHAPS AHEAD OF MOST AMERICANS IN RECOGNIZING THE BASIC UNFAIRNESS OF THE BOY SCOUT'S POLICY BUT NOT FOR LONG WILL THE LEADERSHIP OF THE BOY SCOUTS SACRIFICE THAT GREAT ORGANIZATION TO THE STUBBORNNESS OF THEIR PREJUDICE EDITORIALS LIKE YOURS ONLY ENCOURAGE THEM TO DO SO YOUR EDITORIAL CRITICIZING PRESIDENT CLINTON'S FAILURE TO ATTEND THE BOY SCOUTS ANNUAL JAMBOREE MISSES THE POINT DOES NOT BANNING LEADERSHIP WITHIN THE SCOUTS FOR REASONS ONLY OF SEXUALITY CONTRADICT THEIR OWN IDEALS AS YOU QUOTED OF THE INEXHAUSTIBLE ATTRACTIONS OF CHALLENGE AND OF HIGH STANDARDS AND THE PURSUIT OF MERIT OR THEIR VALUES OF COURTESY TRUSTWORTHINESS REVERENCE LOYALTY AND WONDERFULLY ENOUGH GOOD CHEER ISN'T IT FAIR FOR A PERSON WHO ASKS TO LEAD IN SUCH AN ORGANIZATION REGARDLESS OF HIS SEXUALITY TO EXPECT NOT ONLY TO ESPOUSE THESE IDEALS BUT TO BE TREATED THE SAME WAY THE FACT IS THE POSITION OF THE BOY SCOUTS' CURRENT LEADERSHIP ON GAYS NOT THE PRESIDENT OR ANYONE ELSE HAS MADE THIS A POLITICAL ISSUE THEIR DOGMA COUCHED AS VALUES TO TREAT CERTAIN PEOPLE LESS HONORABLY THAN OTHERS IGNORES THE SCOUTS' OWN MORE OBJECTIVE CRITERIA OF PHYSICALLY STRONG MENTALLY AWAKE AND MORALLY STRAIGHT PERHAPS THE LAST PHRASE IS BEING READ TOO LITERALLY I DON'T DISPUTE THAT THE BOY SCOUTS CAN DO SOME GOOD FOR A LOT OF YOUNG KIDS BUT MANY OF US DID NOT FIND SOLACE WITHIN THOSE CANVAS WALLS HOW COURTEOUS KIND AND LOYAL IS BANNING THEIR OWN CREDENTIALED GAY LEADERS FURTHER DENYING POSITIVE ROLE MODELS TO THE DESPERATELY DISAVOWING GAY 13YEAROLD A SCOUT OATH THAT TRULY PROVIDES INFINITELY SANER RULES FOR SURVIVAL WOULD ANSWER TO THE HIGH SUICIDE RATE OF ADOLESCENT BOYS PHYSICALLY STRONG MENTALLY AWAKE AND MORALLY STRAIGHT HOLDS AN OVERT DOUBLE MEANING PRESIDENT CLINTON IS SKITTISH ON THE GAY CONTROVERSY WHICH LEADS US ONLY TO GUESS WHY HE SNUBBED THE BOY SCOUTS JAMBOREE HE DIDN'T MAKE AN APPEARANCE AT THE LARGEST GAY CIVILRIGHTS MARCH IN HISTORY LAST APRIL EITHER AND THAT WAS IN HIS OWN FRONT YARD SO DON'T THINK HE'S IN BED WITH US IT IS THOSE SMALL ACTS OF INCIVILITY PERPETUATED BY THE BOY SCOUTS OF AMERICA THAT TELL THE WORLD A MUCH GRAVER TALE 9308300019 930830 TECHNOLOGY BRIEF RABBIT SOFTWARE CORP COMPANY TANGRAM SYSTEMS DISCUSS A MERGER PROPOSAL RABBIT SOFTWARE CORP MALVERN PA SAID IT IS DISCUSSING A POSSIBLE MERGER WITH TANGRAM SYSTEMS CORP UNDER TERMS THAT WOULD LIKELY GIVE TANGRAM SHAREHOLDERS MORE THAN A MAJORITY OF RABBIT'S SHARES SAFEGUARD SCIENTIFICS INC WAYNE PA THE MAJORITY SHAREHOLDER OF BOTH COMPANIES SUPPORTS THE PROPOSAL ALTHOUGH RABBIT SAID DISCUSSIONS ARE STILL PRELIMINARY IF THE TRANSACTION GOES THROUGH THE COMBINED COMPANY WILL BE NAMED TANGRAM ENTERPRISE SOLUTIONS AND WILL BE BASED IN RALEIGH NC THE COMPANY SAID RABBIT MAKES DATA PROCESSING AND CONNECTIVITY PRODUCTS FOR USE IN COMPUTERS AND WORKSTATIONS TANGRAM RALEIGH NC PROVIDES INFORMATION MANAGEMENT SERVICES AND PRODUCES SOFTWARE PRODUCTS A RABBIT SPOKESMAN SAID THE COMBINED COMPANY WOULD HAVE PROJECTED REVENUE OF 10 MILLION TO 15 MILLION IN FISCAL 1993 9308300018 930830 SAN MIGUEL RAISES DIVIDEND MANILA PHILIPPINES SAN MIGUEL CORP'S DIRECTORS DECLARED A CASH DIVIDEND OF 35 CENTAVOS 128 CENTS A SHARE FOR THE CURRENT QUARTER AN INCREASE FROM THE PREVIOUS QUARTER'S 25 CENTAVOS A SHARE SAN MIGUEL A FOOD AND PACKAGING CONCERN SAID THE DIVIDEND IS PAYABLE OCT 25 TO STOCK OF RECORD SEPT 24 9308300017 930830 LETTERS TO THE EDITOR GO AHEAD AND WHINE I'LL TAKE YOUR JOB AS A MEMBER OF THE SO CALLED GENERATION X I WOULD LIKE TO SET THE RECORD STRAIGHT ON YOUR ARTICLE OF JULY 28 THE WHINING OF THE YOUNG PEOPLE QUOTED IS IN NO WAY INDICATIVE OF THE MAJORITY OF TWENTY SOMETHINGS ACCORDING TO YOUR ARTICLE ONE YOUNG MAN UPON GRADUATION DISDAINED THE INSURANCE AND SALES JOBS OFFERED BY THE SCHOOL PLACEMENT OFFICE THE HEROES OF YOUR ARTICLE RESIDE IN PORTLAND ORE WHERE THEY COMPLAIN DAILY ABOUT FEELING OLD AND DEFEATED I WOULD BE AMAZED IF ANY OF YOUR READERS FEEL SORRY FOR THESE SPOILED CHILDREN OF AFFLUENT FAMILIES WHO DON'T HAVE THE AMBITION TO BE A SUCCESS THERE ARE PLENTY OF GOOD JOBS HOWEVER IT'S MUCH EASIER TO LIE AROUND THE HOUSE AND FEEL SORRY FOR ONESELF I HAVE ONE OF THE SALES JOBS THAT WAS DISDAINED THE WORST THING I HAVE TO WHINE ABOUT IS A PRESIDENT WHO WANTS TO REWARD MY HARD WORK WITH A HIGHER TAX RATE IT IS FITTING THAT THE PEOPLE YOU CHARACTERIZE AS HIGH ACHIEVERS ARE MOSTLY A COALITION OF CLINTONSTYLE SOCIAL ACTIVISTS THERE ARE MANY IN MY GENERATION WHO HOLD TRADITIONAL VALUES IN HIGH REGARD WE REALIZE THE AMERICAN DREAM IS NOT DEAD FOR THOSE WITH COURAGE AND VISION 9308300016 930830 SWEDISH MILLS SEEK ALLIANCES AMID RECOVERY SCA JOINS OFFERING BLITZ TO BUILD CASH FOR PLAN TO RETOOL PAPER PLANTS BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM SWEDEN'S DRASTICALLY DEPRECIATED CURRENCY MAY HAVE JUMPSTARTED A TURNAROUND FOR THE COUNTRY'S POWERFUL FORESTRY INDUSTRY BUT PULP AND PAPER GIANTS NEED FURTHER HELP FROM INTERNATIONAL INVESTORS AND CORPORATE ALLIES TO KEEP THE RECOVERY GOING CONSIDER SVENSKA CELLULOSA AB SWEDEN'S SECOND BIGGEST FORESTRY CONCERN WHICH ON FRIDAY REPORTED A HEFTY SECONDQUARTER PROFIT REVERSING A YEAREARLIER LOSS BUT IMMEDIATELY JOLTED MARKETS HERE BY UNVEILING PLANS FOR A 14 BILLION SWEDISH KRONOR 1735 MILLION SHARE OFFERING THE MOVE ADDS TO A RECENT DELUGE OF EQUITY OFFERINGS ANNOUNCED BY CASHHUNGRY SWEDISH BANKS AND CORPORATIONS OVER THE PAST TWO WEEKS ALONE NEARLY 12 BILLION KRONOR IN PLANNED SHARE OFFERINGS HIT THE MARKET NEARLY TRIPLE NEW ISSUE VOLUME FOR THE WHOLE OF 1992 ANALYSTS NOW ESTIMATE THAT 1993 NEW ISSUES IN STOCKHOLM WILL EXCEED 22 BILLION KRONOR WITH DOMESTIC INVESTORS' LIQUIDITY ALREADY BADLY STRETCHED MUCH OF THE NEW STOCK APPEARS TO BE EARMARKED FOR BUYERS OUTSIDE SWEDEN INDEED HEAVY NET PURCHASES BY INTERNATIONAL INVESTORS HAVE PROPELLED THE 39 SURGE IN THE STOCKHOLM'S AFFAERSVAERLDEN GENERAL INDEX SO FAR THIS YEAR MOST ANALYSTS EXPECT THE GLUT OF NEW STOCK TO BE ABSORBED TOO THOUGH PROBABLY NOT WITHOUT COOLING THE AFFAERSVAERLDEN INDEX SIGNIFICANTLY IN THE PROCESS ON FRIDAY THE STOCKHOLM MARKET BROKE A STRING OF FIVE CONSECUTIVE DAILY DECLINES BY SPURTING 192 POINTS OR 15 TO 12702 BUT THE AFFAERSVAERLDEN INDEX STILL ENDED THE WEEK OFF 3 A SOUR RESPONSE TO THE FLOOD OF SHARE OFFERINGS WHILE MANY OF THE RECENT SHARE OFFERING PROPOSALS APPEAR TO BE OPPORTUNISTIC ATTEMPTS TO EXPLOIT RECENT SHARE PRICE RISES AND SHORE UP SHAKY BALANCE SHEETS SCA HAD POTENT ARGUMENTS THE COMPANY DISCLOSED IT INTENDS TO INVEST THREE BILLION KRONOR OVER THE NEXT THREE YEARS BUILDING AND UPGRADING PAPER MILLS THE BIGGEST SINGLE PROJECT A NEW 400000 TONAYEAR NEWSPRINT MILL IN AYLESFORD ENGLAND WILL BE A JOINT VENTURE WITH SOUTH AFRICAN PAPER CONCERN MONDI GLOBAL PULP AND PAPER BARONS BLAME EXCESS PRODUCTION CAPACITY FOR THE DEPRESSED PRICES CURRENTLY PREVAILING IN MOST PAPER GRADES SO PLENTY OF COMPANIES WILL BRISTLE ABOUT THE PROPOSED AYLESFORD PROJECT ANALYSTS SUGGESTED BUT SCA CHIEF EXECUTIVE OFFICER SVERKER MARTIN LOEF INSISTED NEWSPRINT IS AN EXCEPTION WITH MOST NEWSPRINT MILLS AROUND EUROPE RUNNING AT MORE THAN 90 OF CAPACITY STILL STRESSING WE WILL DO OUR BEST NOT TO PUSH CAPACITY INCREMENTS TOO FAR MR MARTINLOEF PROMISED SCA WOULD REMOVE 150000 TONS OR ONETHIRD OF CURRENT NEWSPRINT CAPACITY BY CONVERTING ONE SWEDISH NEWSPRINT MACHINE TO PRODUCTION OF COATED MAGAZINE PAPER SCA ALSO POINTS TO ONE OF THE IMPORTANT PLUSES OF THE AYLESFORD MILL THAT IT WILL RELY ENTIRELY ON RECYLCED WASTE PAPER FOR ITS RAW MATERIAL RATHER THAN VIRGIN PULP USED AT THE SWEDISH MILLS THE SHIFT TO RECYCLED WASTE PAPER IS IN LINE WITH ENVIRONMENTAL PRESSURES GROWING THROUGHOUT EUROPE MOREOVER MR MARTINLOEF BOASTED THAT AYLESFORD WILL BE EUROPE'S LOWESTCOST NEWSPRINT PRODUCER CHEAPER RAW MATERIAL TRANSPORT AND DISTRIBUTION WILL PRUNE COSTS OF AYLESFORD NEWSPRINT TO ABOUT 200 30250 PER TON COMPARED WITH A EUROPEAN AVERAGE OF ABOUT 240 A TON AND MORE THAN 300 A TON FOR NEWSPRINT EXPORTED TO EUROPE BY CANADIAN COMPANIES SWEDISH NEWSPRINT MILLS ARE TOO DISTANT FROM MAJOR POPULATION CENTERS TO MAKE COLLECTION OF WASTE PAPER ECONOMICALLY VIABLE THUS EXCEPT FOR SOME SPECIAL PRODUCTS SWEDISH PRODUCERS MAY HAVE LITTLE CHOICE BUT TO MOVE THEIR NEWSPRINT OPERATIONS CLOSER TO BIG EUROPEAN CITIES AND CONVERT VIRGINPULPBASED PRODUCTION TO OTHER PRODUCTS ANALYSTS SUGGEST WHEN THE AYLESFORD FACILITY IS IN FULL SWING SCA EXPECTS TO PRODUCE 400000 TONS OR 55 OF NEWSPRINT OUTPUT FROM RECYCLED WASTER PAPER AND THE REMAINING 330000 TONS FROM VIRGIN PULP IN SWEDEN BUT THE FINANCIAL RISKS OF SUCH A PRODUCTION RESHUFFLE ARE A SOURCE OF BOARDROOM CONCERN AT SCA WHICH CONTINUES TO FEEL EFFECTS OF A LATE 1980S ACQUISITION SPREE DIRECTORS DECIDED TO SEEK THE ADDED 14 BILLION KRONOR FROM SHAREHOLDERS MR MARTINLOEF EXPLAINED TO HOLD THE COMPANY'S DEBT/EQUITY RATIO AT THE PRESENT 70 LEVEL DESPITE THE MASSIVE INVESTMENT PROGRAM MOREOVER DESPITE CONSIDERABLE IMPROVEMENT IN OPERATING RESULTS SO FAR THIS YEAR MR MARTINLOEF IS MORE GUARDED ABOUT PROSPECTS OF AN IMMINENT INDUSTRY TURNAROUND THAN COUNTERPARTS AT SOME RIVAL SCANDINAVIAN FORESTRY COMPANIES IN THE SECOND QUARTER SCA REBOUNDED TO PRETAX PROFIT OF 279 MILLION KRONOR FROM YEAREARLIER LOSS OF 64 MILLION KRONOR PROFIT BEFORE TAX IN THE FIRST HALF QUINTUPLED TO 550 MILLION KRONOR FROM 94 MILLION KRONOR THE PREVIOUS YEAR THE 30 DEPRECIATION OF THE KRONOR SINCE LAST NOVEMBER GAVE SCA A MAJOR COMPETITIVE BOOST AND EVEN ALLOWED THE SWEDISH CONCERN TO STEP UP EXPORTS TO NORTH AMERICA BUT FURTHER PRICE REDUCTIONS IN MANY EUROPEAN MARKETS OFFSET POSITIVE EFFECTS OF THE WEAKER KRONA MR MARTINLOEF SAID AND OPERATING PROFIT AT THE FLAGSHIP MOELNLYCKE DISPOSABLE DIAPER DIVISION DROPPED SHARPLY FROM RECENT QUARTERS A CONSEQUENCE OF PRICE WARS AROUND EUROPE WHICH BROKE OUT WITH THE RECENT ENTRY OF US CONSUMER GOODS GIANT KIMBERLYCLARK CORP 9308300015 930830 WHAT'S NEWS BUSINESS AND FINANCE NATIONAL MEDICAL'S POLICIES AND DIRECTIVES ARE BEING EXAMINED BY FEDERAL AGENTS WHO ARE SEEKING EVIDENCE LINKING SUSPECTED CRIMINAL MISCONDUCT BY MANY OF THE FIRM'S HOSPITALS WITH ITS TOP EXECUTIVES MEANWHILE THE COMPANY ACTED TO TRY TO RESTORE CONFIDENCE FOLLOWING THURSDAY'S RAID BY US AGENTS OF MORE THAN 20 OF ITS FACILITIES ON FRIDAY ITS STOCK PLUNGED 3375 OR 30 TO 775 GPA GROUP IS EXPECTED TO SIGN FINANCIALRESCUE PACKAGES WITH GE'S FINANCIAL SUBSIDIARY AND A BANK SYNDICATE THIS WEEK 14 MONTHS AFTER A FAILED STOCK OFFERING PLUNGED THE GIANT IRISH AIRCRAFTLEASING FIRM INTO CRISIS MCDONNELL DOUGLAS'S PLANNED SALE TO THE US OF 120 C17 TRANSPORTS COULD BE REDUCED TO HALF THAT AMOUNT WITH THE MILITARY STILL ABLE TO DEPLOY FORCES EFFECTIVELY A PENTAGON STUDY SAYS BANKS' LENDING TERMS SEEM TO BE EASING ACCORDING TO A FED SURVEY EQUALLY IMPORTANT THE LENDERS FOUND BUSINESSES AND HOUSEHOLDS INCREASINGLY WILLING TO BORROW MONEY MORTGAGE LENDING TO MINORITIES IMPROVED LAST YEAR AT MANY OF THE NATION'S BIGGEST BANKS HOWEVER THE DISPARITY BETWEEN MINORITY AND WHITE APPLICANTS IS STILL SIGNIFICANT STOCKS FELL AMID DECLINING BOND PRICES THE DOW JONES INDUSTRIALS LOST 755 POINTS TO 364063 AS THE BENCHMARK 30YEAR TREASURY BOND'S PRICE SLID 3/4 POINT AND ITS YIELD ROSE TO 614 NOVELL'S ROEL PIEPER IS LEAVING THE SOFTWARE MAKER ONLY TWO MONTHS AFTER ITS PURCHASE OF UNIX SYSTEMS OF WHICH PIEPER HAD BEEN CHAIRMAN AND CEO ALYESKA PIPELINE'S SAFETY AND ENVIRONMENTAL PRACTICES ALONG THE TRANSALASKA PIPELINE WILL BE AUDITED BY A TEAM OF INDEPENDENT ENGINEERS DISPATCHED BY THE INTERIOR DEPARTMENT MACHINETOOL ORDERS FELL 20 IN JULY FROM JUNE AS SEASONAL PLANT CLOSINGS SLOWED ACTIVITY BUT ORDERS STAYED WELL ABOVE THE YEAREARLIER LEVEL CHRYSLER ASKED FOR HEALTHCARE CONCESSIONS AND LOWER STARTING WAGES FOR NEW HIRES IN ITS OPENING OFFER TO THE UAW WHICH CRITICIZED THE PROPOSAL CENTRAL & SOUTH WEST'S PROPOSAL TO PURCHASE EL PASO ELECTRIC WAS ACCEPTED BY A BANKRUPTCY JUDGE MOVING THE DALLAS UTILITY CLOSER TO VICTORY IN ITS BITTER FIGHT WITH SOUTHWESTERN PUBLIC SERVICE TO ACQUIRE EL PASO HORMEL'S RICHARD KNOWLTON PLANS TO STEP DOWN AS CHIEF EXECUTIVE OF THE FOOD PROCESSOR BUT WILL REMAIN CHAIRMAN HE INTENDS TO RECOMMEND THAT PRESIDENT JOEL JOHNSON SUCCEED HIM VW DEMANDED AN EXPLANATION FROM GERMAN PROSECUTORS FOR WHAT IT SAYS WERE UNUSUAL ACTIONS SURROUNDING LAST WEEK'S POLICE SEARCH OF COMPANY OFFICES AND TOP MANAGERS' HOMES PRUDENTIAL INSURANCE STREAMLINED ITS SENIOR MANAGEMENT STRUCTURE FORMING A TWOMEMBER OFFICE OF THE CHAIRMAN TO REPLACE THE COMPANY'S FIVEMEMBER EXECUTIVE OFFICE BONDS LEHMAN BROTHERS TREASURY INDEX 555764 OFF 1504 COMMODITIES OIL 1975 A BARREL UP 28 CENTS DOW JONES FUTURES INDEX 12778 UP 124 SPOT INDEX 12312 UP 057 DOLLAR 10375 YEN OFF 060 16644 MARKS OFF 00031 9308300014 930830 LETTERS TO THE EDITOR ARKLA AND STEPHENS JAMES RING ADAMS IN HIS AUG 20 EDITORIAL PAGE PIECE CORRUPT CAPITAL THE BCCIS YET TO COME ASSERTS THAT JACK STEPHENS WAS THE POWER BEHIND ARKLA GAS CO WHILE THE STEPHENS FAMILY DID HAVE A SIGNIFICANT ROLE AT ARKLA AT ONE TIME THAT ENDED YEARS AGO WITT STEPHENS JACK'S LATE BROTHER RETIRED AS CEO OF ARKLA THEN ARKANSAS LOUISIANA GAS CO IN 1973 AND HAD NO ROLE FORMAL OR INFORMAL AFTER THAT IN THE NINE YEARS I HAVE BEEN WITH ARKLA WE HAVE NEVER IDENTIFIED STEPHENSRELATED STOCK OWNERSHIP THAT EXCEEDED 100000 SHARES ARKLA CURRENTLY HAS 122 MILLION SHARES OUTSTANDING I ALSO WOULD BE GRATEFUL IF MR ADAMS WOULD IDENTIFY THE NUMEROUS ARKLA OFFICERS WHO NOW LINE THE WHITE HOUSE 9308300013 930830 WHO'S NEWS THINKING MACHINES IS EXPECTED TO NAME FISHMAN AS PRESIDENT CAMBRIDGE MASS THINKING MACHINES CORP IS EXPECTED TODAY TO NAME WASHINGTON DC ATTORNEY RICHARD FISHMAN PRESIDENT AND CHIEF OPERATING OFFICER THE MANAGEMENT SHAKEUP IS PART OF A SERIES OF RECENT MOVES MEANT TO POSITION THE SUPERCOMPUTER MAKER FOR AN INITIAL PUBLIC OFFERING OF STOCK WHICH NOW LOOKS IMMINENT AN INDUSTRY INSIDER SAID MR FISHMAN 46 YEARS OLD SUCCEEDS HARVEY WEISS WHO RESIGNED UNEXPECTEDLY EARLIER THIS MONTH MR FISHMAN IS A MANAGING PARTNER IN THE WASHINGTON OFFICE OF MILBANK TWEED AND ALREADY HAS HANDLED SEVERAL PROJECTS FOR THINKING MACHINES PEOPLE AT THE COMPANY SAID THINKING MACHINES WHICH HAD SALES OF 92 MILLION LAST YEAR WAS A PIONEER OF MASSIVELY PARALLEL COMPUTER DESIGNS IN WHICH HUNDREDS OR THOUSANDS OF MICROPROCESSORS WORK IN PARALLEL ON A PROBLEM WHILE IT HAS FOCUSED SO FAR ON SALES TO ENGINEERS AND SCIENTISTS IT IS SEEKING TO PUSH INTO COMMERCIAL MARKETS OFFERING ITS SYSTEMS AS A POWERFUL AND LOWERCOST ALTERNATIVE TO MAINFRAME COMPUTERS 9308300012 930830 HEINEKEN FINDS BOTTLER AT FAULT IN RECENT RECALL BOTTLES IN EIGHT COUNTRIES WITHDRAWN AFTER CHECK FOUND GLASS SPLINTERS SPECIAL TO THE WALL STREET JOURNAL PARIS THE DEFECTIVE BOTTLES THAT DUTCH BREWER HEINEKEN NV HAS WITHDRAWN FROM THE MARKET WERE MADE BY A UNIT OF FRENCH FOOD CONGLOMERATE BSN SA HEINEKEN HOLDS THE BSN UNIT VEREENIGDE GLASFABRIEKEN RESPONSIBLE FOR THE PROBLEM HEINEKEN SPOKESMAN CHRIS WOERTS SAID BUT HE AND A BSN SPOKESWOMAN IN PARIS SAID NO LAWSUIT HAD BEEN FILED IN CONNECTION WITH THE PROBLEM CONTRARY TO SOME PARIS STOCKMARKET RUMORS THE RECALL DOESN'T AFFECT ANY BOTTLES IN THE US MEANWHILE TWO OTHER DUTCH BREWERS SAID THEY WERE WITHDRAWING MILLIONS OF BEER BOTTLES FROM THE MARKET AFTER A BATCH WAS FOUND TO CONTAIN GLASS SPLINTERS ACCORDING TO THE DUTCH DAILY DE VOLKSKRANT THE CLOSELY HELD DUTCH BREWER BAVARIA PLANS TO DESTROY 45 MILLION BOTTLES AND BLOCK SALES OF BOTTLED BEER IN BRITAIN FRANCE ITALY AND SPAIN NO ONE WAS AVAILABLE FOR COMMENT AT BAVARIA ANOTHER BREWER ORANJEBOOM ALSO HAS RECALLED BEER BOTTLES LIKE HEINEKEN THOSE BREWERS SAID THEY USE BOTTLES MADE BY BSN'S DUTCH GLASSMAKING UNIT THE GLASSMAKER SAID ALL THE SUSPECT BOTTLES HAD COME FROM A NEW LIGHTWEIGHT BOTTLEMAKING PROCESS WHICH HAD NOW BEEN HALTED MR WOERTS DESCRIBED THE BOTTLEMAKER'S RESPONSIBILITY AS A FORMAL THING BUT WOULDN'T ELABORATE OUR PRIORITY IS SOLVING THE PROBLEM GETTING THE BOTTLES OUT OF THE MARKET HE DIDN'T RULE OUT THE POSSIBILITY OF COURT ACTION BUT SAID THAT NOTHING OF THE SORT IS CURRENTLY BEING PLANNED THE DUTCH BREWERY HEINEKEN SAID THURSDAY IT IS RECALLING THOUSANDS OF BEER BOTTLES IN EIGHT COUNTRIES BECAUSE THEY MAY CONTAIN GLASS SPLINTERS THE SPLINTERS WERE FOUND DURING A ROUTINE CHECK OF 33CENTILITER 10 OUNCE SIZE BOTTLES IN THE BREWERY THE BSN SPOKESWOMAN SAID THAT ANY DAMAGES THAT MIGHT RESULT FROM THE FAULTY BOTTLES SUCH AS LOST REVENUE FOR HEINEKEN OR COMPLAINTS FROM CONSUMERS WHO MIGHT HAVE BOUGHT A BOTTLE OF BEER WITH GLASS IN IT ARE COVERED BY INSURANCE ALL BOTTLEMAKERS HAVE SUCH INSURANCE SHE SAID SHE ADDED THAT THERE HAVE BEEN NO REPORTS OF ANYONE DRINKING BEER WITH GLASS IN IT THE CAUSE IS STILL UNKNOWN SHE SAID BUT IT APPEARS AT THIS POINT THAT THE PROBLEM HAS TO DO WITH AN INCOMPATIBLE BOTTLE CAP AND TOP OF THE BOTTLENECK MR WOERTS SAID 17 MILLION BOTTLES ARE BEING RECALLED AND THAT 80 OF THOSE ARE ALREADY OUT OF THE MARKET HE ADDED THAT THE COMPANY EXPECTS TO FIND SHARDS IN ONLY ABOUT 1 OF THE BOTTLES THE 17 MILLION BOTTLES REPRESENT LESS THAN 1 OF THE TOTAL PRODUCTION OF HEINEKEN BEER IN THE EIGHT COUNTRIES WHERE THE RECALLS ARE TAKING PLACE MR WOERTS SAID THE COUNTRIES ARE AUSTRIA BRITAIN FINLAND HONG KONG HUNGARY ISRAEL SWEDEN AND PRINCE EDWARD ISLAND IN CANADA HEINEKEN CANADA LATER SAID THE RECALL DOESN'T AFFECT ANY BOTTLES AVAILABLE FOR SALE IN CANADA THE COMPANY SAID ALL PRODUCTS THAT FELL WITHIN THE RECALL CODES WERE STOPPED AT CANADA CUSTOMS AND LIQUOR BOARD WAREHOUSES HEINEKEN PRODUCED WORLDWIDE 537 MILLION HECTOLITERS ONE HECTOLITER IS ABOUT 26418 GALLONS LAST YEAR MR WOERTS WOULDN'T SAY HOW MUCH THE INCIDENT WILL COST THE BREWER ONLY THAT IT WILL COST A CONSIDERABLE AMOUNT OF MONEY AFTER THE PROCESS OF RECALLING DESTROYING AND REPLACING THE BOTTLES IS COMPLETE 9308300011 930830 LETTERS TO THE EDITOR WHEN DISASTER STRIKES WE GO FOR THE ANIMALS IN REGARD TO YOUR JULY 26 PAGEONE ARTICLE ABOUT THE ANIMAL VICTIMS OF THE MIDWEST FLOODS IN MAJOR DISASTERS MS CRISP IS THERE SAVING THE ANIMALS THE HUMANE SOCIETY OF THE UNITED STATES DOES PROVIDE DIRECT HELP FOR ANIMALS AS WELL AS PROVIDING FINANCIAL HELP AND RELIEF COORDINATORS WE HAD A RESCUE TEAM IN THE MIDWEST FLOOD AREA RESCUING STRANDED DOGS CATS AND CATTLE WORKING WITH ANIMAL SHELTERS THAT HOLD STRAY AND ABANDONED PETS AND HELPING TO PROVIDE ANIMAL SHELTERS WITH DRINKING WATER SUPPLIES AND OTHER NECESSITIES WE ALSO TELL PEOPLE WHAT THEY CAN DO TO PROTECT THEIR ANIMALS INCLUDING COMPANION ANIMALS WILDLIFE AND FARM ANIMALS THIS ISN'T THE FIRST TIME WE'VE HELPED FOLLOWING HURRICANE ANDREW THE SOCIETY SENT SEVERAL STAFF MEMBERS TO SOUTH FLORIDA AND TO LOUISIANA WE SET UP A VETERINARY UNIT TO TREAT INJURED ANIMALS AND ESTABLISHED AN ANIMAL LOSTANDFOUND TO HELP REUNITE PEOPLE WITH THEIR PETS AFTER AN OIL SPILL IN NORTHERN VIRGINIA THE SOCIETY WILDLIFE REHABILITATORS WASHED OIL OFF OF DUCKS AND BEAVERS WE WERE THERE TO RETURN THE ANIMALS TO THE WILD AFTER THEY REGAINED THEIR HEALTH NO ONE PERSON OR GROUP CAN HELP EVERY ANIMAL THAT SUFFERS IN A DISASTER THE ANSWER IS TO PREVENT THE NEED FOR RESCUES BY EDUCATING PEOPLE TO INCLUDE ANIMALS IN THEIR DISASTER PLANS FOR THEIR FAMILIES WE BELIEVE LOCAL GROUPS ARE OFTEN THE BEST EQUIPPED TO HELP DURING DISASTERS THE SOCIETY IS COMMITTED TO ASSISTING THEM AND PREPARING THEM FOR FUTURE DISASTERS 9308300010 930830 WHO'S NEWS CHAIRMAN OF ABSA HERC HEFER RESIGNS SPECIAL TO THE WALL STREET JOURNAL JOHANNESBURG HERC HEFER CHAIRMAN OF AMALGAMATED BANKS OF SOUTH AFRICA ANNOUNCED HIS RESIGNATION FRIDAY CITING HIS AGE MR HEFER IS THE SECOND TOP EXECUTIVE TO LEAVE THE BANKING GROUP THIS YEAR ABSA'S CHIEF EXECUTIVE OFFICER PIET BADENHORST WHO WAS INSTRUMENTAL IN THE FORMATION OF THE GROUPRESIGNED EARLIER IN THE YEAR MR BADENHORST AND ANOTHER TOP EXECUTIVE ADMITTED EARLIER THIS MONTH IN COURT TO BUGGING THE TELEPHONES OF TWO EMPLOYEES FACING CHARGES OF FRAUD AND ATTEMPTED THEFT A THIRD ABSA EXECUTIVE BOB ALDWORTH WAS FIRED IN 1992 ON ALLEGATIONS OF FRAUD ABSA WAS FORMED IN JANUARY 1991 WHEN UNITED BUILDING SOCIETY HOLDINGS LTD A MAJOR BUILDINGSOCIETY GROUP ACQUIRED THE ASSETS OF THREE MAJOR BANKING GROUPS ALLIED GROUP LTD VOLKSKAS GROUP LTD AND SAGE FINANCIAL SERVICES LTD 9308300009 930830 FINANCING BUSINESS FRANCONEVADA MINING CORP FRANCONEVADA MINING CORP TORONTO SAID IT AGREED WITH UNDERWRITERS TO ISSUE ONE MILLION SPECIAL WARRANTS AT 75 CANADIAN DOLLARS US57 EACH EACH SPECIAL WARRANT IS EXCHANGEABLE FOR ONE COMMON SHARE AND ONE SHAREPURCHASE WARRANT ENTITLING THE PURCHASE OF ONE COMMON SHARE FOR FIVE YEARS AT C200 THE COMPANY HAD 14 MILLION SHARES OUTSTANDING AS OF LAST MONTH THE GOLD ROYALTY COMPANY SAID THE FUNDS WILL BE USED TO FINANCE CONSTRUCTION OF GOLD MINES WITH A VIEW TO OBTAINING ROYALTIES ON PRODUCTION FRANCONEVADA SHARES CLOSED FRIDAY AT C7250 UP C125 ON THE TORONTO STOCK EXCHANGE 9308300008 930830 THESE PARTICULAR BUYERS OF DOLLS DON'T SAY DON'T ASK DON'T TELL' BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL AFTER YEARS OF PLAYING SECOND FIDDLE TO BARBIE KEN IS COMING INTO HIS OWN AS A DOLL THAT MAKES DOLLARS FOR MATTEL INC BUT NOT ANY OLD KEN IT'S EARRING MAGIC KEN A NEW MODEL THAT SPORTS AN EARRING FAUXLEATHER VEST LAVENDER MESH SHIRT WITH ROLLED UP SLEEVES BLACK PANTS AND TWOTONE HAIRDO AND IT ISN'T ONLY GIRLS AND THEIR PARENTS WHO ARE BUYING IT'S ALSO GAY MEN INTEREST IN THE DOLL FIRST SPREAD IN FEBRUARY AFTER THE GAY ADVOCATE DID A BLURB ON KEN'S WARDROBE SINCE THEN BUYING THE DOLL HAS BECOME AN OPPORTUNITY FOR SOME GAY MEN TO TWEAK THE SENSIBILITIES OF THOSE WITH MORE CONVENTIONAL VIEWS OF GENDER AND TOYS HOW MUCH MORE MIDDLE AMERICA CAN YOU GET THAN BARBIE ASKS RANDY SNYDER A MEMBER OF GAYS AND LESBIANS AGAINST DISCRIMINATION IT'S LIKE A PARIAH SETTING FOOT IN ONE OF AMERICA'S SANCTUARIES ADDS DENNIS MCNULT A SAN FRANCISCOAREA RESIDENT A COUPLE OF YEARS AGO THERE WAS DESERT STORM KEN IN KHAKI FATIGUES AND AS SOON AS HE HEARD PRESIDENT CLINTON WAS GOING TO LIFT THE BAN ON GAYS IN THE MILITARY HE COMES OUT AS EARRING MAGIC JOKES RICK GARCIA A GAY LOBBYIST IN CHICAGO HE SAYS THAT THE DOLL'S OUTFIT RIGHT DOWN TO THE TWOTONE HAIR EVOKES A HOT GAY FASHION OF THE LATE 1970S AND EARLY 1980S STORES AROUND THE COUNTRY REPORT THINNING STOCKS OF THE DOLL AND AT FAO SCHWARZ IN CHICAGO THERE'S A WAITING LIST WE'LL PUT YOU DOWN WITH THE OTHER GUYS A STORE CLERK TOLD A RECENT CALLER BECAUSE OF THE DEMAND SOME RETAILERS IN SAN FRANCISCO ARE MARKING UP EARRING MAGIC KEN TO 17 TO 24 APIECE EARRING MAGIC BARBIE USUALLY SELLS FOR 11 MATTEL DENIES MAKING THE DOLL FOR GAY MEN ITS AIM IS TO PRODUCE WHOLESOME AND FUN PRODUCTS FOR YOUNG GIRLS SAYS SPOKESWOMAN DONNA GIBBS MEN WEARING EARRINGS HAVE BECOME MORE OF A MAINSTREAM PHENOMENON BUT MS GIBBS ADDS THAT EVERYBODY LOVES BARBIE AND WE'RE PLEASED THAT GAY MEN ARE FINDING SOMETHING TO ENJOY IN OUR PRODUCTS AS WELL AT LEAST ON THE RECORD THE DOLL HASN'T BEEN A TOPIC OF CONVERSATION IN BALTIMORE WHERE SOME 600 BARBIE COLLECTORS ARE HOLDING A CONVENTION EARRING MAGIC KEN ISN'T ONE OF MY FAVORITES SAYS MARK OUELLETTE THE CONVENTION'S CHAIRMAN MY OPINION IS THAT EARRING MAGIC KEN LOOKS GREAT WITH BARBIE AND THAT'S WHO HE SHOULD BE WITH 9308300007 930830 POLITICS & POLICY RETROACTIVE INCREASE APPLIED TO ESTATE TAX FACES LEGAL CHALLENGE WASHINGTON AN ANTITAX ORGANIZATION CHALLENGED THE CONSTITUTIONALITY OF A RETROACTIVE INCREASE IN ESTATE TAXES ENACTED THIS MONTH IN A SUIT FILED IN US DISTRICT COURT HERE THE NATIONAL TAXPAYERS UNION SAID IT IS UNCONSTITUTIONAL TO INCREASE TAXES ON ESTATES OF INDIVIDUALS WHO DIED AFTER JAN 1 1993 BUT BEFORE THE DEFICITREDUCTION BILL BECAME LAW THE LAW REINSTATES ESTATE AND GIFT TAX RATES THAT EXPIRED AT THE END OF 1992 EFFECTIVE DEC 31 1992 THE CHANGE WHICH CONGRESSIONAL ANALYSTS SAY WOULD RAISE 279 BILLION OVER THE NEXT FIVE YEARS AFFECTS ONLY ESTATES VALUED AT MORE THAN 25 MILLION WHILE ONLY A SMALL NUMBER OF AMERICANS ARE AFFECTED BY THIS CHANGE WE MUST CHALLENGE IT TO PROTECT THE INTERESTS OF ALL SAID DAVID KEATING PRESIDENT OF THE TAXPAYERS' GROUP IF CONGRESS AND OUR PRESIDENT CAN GET AWAY WITH TAXING THE DEAD THERE ARE INDEED FEW LIMITS ON HOW UNFAIR FUTURE TAX LAWS CAN BECOME THE TREASURY'S TOP TAX LAWYER ASSISTANT SECRETARY LESLIE SAMUELS SAID WE BELIEVE IT IS CONSTITUTIONAL THE LAWSUIT DOESN'T CHALLENGE THE RETROACTIVE INCREASE IN INCOME TAX RATES WE BELIEVE THAT IT'S UNCONSCIONABLE BUT THE COURTS HAVE UPHELD IT SAID MARK LEVIN DIRECTOR OF LEGAL POLICY FOR THE LANDMARK LEGAL FOUNDATION A CONSERVATIVE PUBLICINTEREST LAW FIRM HANDLING THE CASE UNTIL LAST JAN 1 ESTATES VALUED AT 25 MILLION TO 3 MILLION WERE SUBJECT TO ESTATE TAX RATES OF AS MUCH AS 53 ESTATES VALUED AT MORE THAN 3 MILLION FACED RATES OF AS MUCH AS 55 SINCE JAN 1 A TOP RATE OF 50 HAS APPLIED TO ALL ESTATES EXCEEDING 25 MILLION THE NEW LAW RESTORES THE 53 AND 55 TOP RATES AND APPLIES THEM TO ESTATES OF PEOPLE WHO DIED SINCE THE OLD LAW EXPIRED 9308300006 930830 POLITICS & POLICY DEFENSE CONTRACTORS FACE PLAN TO PUT SAME TECHNOLOGY IN NAVY AIR FORCE JETS BY ANDY PASZTOR AND JEFF COLE STAFF REPORTERS OF THE WALL STREET JOURNAL DEFENSE CONTRACTORS ARE CONFRONTING A NEW ADMINISTRATION ARMS PLAN THAT FORCES THEM TO DO WHAT THEY HAVE RESISTED FOR DECADES PUT THE SAME TECHNOLOGY IN BOTH NAVY AND AIR FORCE PLANES DEFENSE SECRETARY LES ASPIN'S ACQUISITION BLUEPRINT AIMS TO SAVE BILLIONS OF DOLLARS IN THE LONG RUN BY REQUIRING DEVELOPMENT OF COMMON ENGINES ELECTRONICS GEAR AND PRECISIONGUIDED WEAPONRY FOR THE NEXT GENERATION OF NAVY AND AIR FORCE COMBAT AIRCRAFT SECRETARY ASPIN'S SOCALLED BOTTOMUP REVIEW OF MAJOR WEAPONS PROGRAMS SLATED TO BE ANNOUNCED WEDNESDAY AFTER MONTHS OF DELAYS AND INTERNAL PENTAGON BICKERING EVEN ENVISIONS THE EVENTUAL BUILDING AND TESTING OF JOINT FIGHTER AND BOMBER PROTOTYPES BY THE TWO SERVICES IF THE INITIATIVE SUCCEEDS IT COULD RADICALLY ALTER THE WAY THE PENTAGON SHOPS FOR NEW AIRCRAFT INSTEAD OF THE INDIVIDUAL SERVICES STARTING LARGELY FROM SCRATCH TO DEVELOP AND TEST THE COMPONENTS OF A NEW PLANE THEY WOULD RELY ON A COMMON POOL OF EQUIPMENT FROM EXPENSIVE RADARS AND NAVIGATIONAL SYSTEMS TO GROUNDBASED SIMULATORS USED TO TRAIN FLIGHT CREWS AS PLANES GET MORE SOPHISTICATED SUCH HARDWARE IS LIKELY TO ACCOUNT FOR AN INCREASINGLY LARGER SHARE OF THE OVERALL PRICE TAG THE NAVY AND AIR FORCE WOULD USE THE SAME BUILDING BLOCKS AND THEN MODIFY THE FUSELAGE LANDING GEAR OR OTHER STRUCTURAL PARTS IN ORDER TO ACCOMMODATE LAND OR CARRIERBASED OPERATIONS THE GOAL PENTAGON ACQUISITION CHIEF JOHN DEUTCH WROTE TOP NAVY AND AIR FORCE OFFICIALS EARLIER THIS MONTH IS TO FOCUS ON KEY TECHNOLOGIES TO MEET FUTURE JOINT OPERATIONAL REQUIREMENTS WHILE REDUCING COST AND RISK COMPANIES ARE LINING UP BEHIND THIS STRATEGY BECAUSE THEY SEE IT AS THE ONLY VIABLE ALTERNATIVE IN THE CURRENT BUDGET CLIMATE WHILE SOME EXISTING PROGRAMS ARE BOUND TO SHRINK UNDER MR ASPIN'S PROPOSAL FOR MANY COMPANIES IT MAY BE THE ONLY WAY TO RETAIN TOPNOTCH SCIENTISTS ENGINEERS AND AT LEAST A STRIPPEDDOWN MANUFACTURING BASE DURING A PERIOD OF SEVERE PENTAGON BUDGET CUTS JAMES ROCHE NORTHROP CORP'S VICE PRESIDENT FOR ADVANCE DEVELOPMENT AND PLANNING SAID THAT SECRETARY ASPIN'S PROPOSAL IS DESIGNED TO ENSURE THAT THE US STILL WILL BE ABLE TO MAINTAIN A TECHNOLOGICAL EDGE WITHOUT HAVING A NEW PLANE COME UP FOR BID EVERY FEW YEARS FOR MANY KEY PARTS ACCORDING TO MR ROCHE IT ALMOST MAKES NO DIFFERENCE WHETHER THEY WILL BE USED IN A NAVY OR AIR FORCE PLANE ROBERT TRICE A VICE PRESIDENT OF MCDONNELL DOUGLAS CORP'S EASTERNREGION OPERATIONS SAYS THE COMPANY IS READY TO PROCEED ON THE COURSE CHARTED BY SECRETARY ASPIN WE WANT THE REVOLUTIONARY NEW SYSTEMS TO COME HE SAID EXCEPT FOR THE EMPHASIS ON JOINT SERVICE PROGRAMS DOWN THE ROAD THE REASSESSMENT BY PRESIDENT CLINTON'S TEAM WILL STICK WITH MOST OF THE PENTAGON'S EXISTING SHORTERTERM ACQUISITION PRIORITIES ACCORDING TO INDUSTRY AND DEFENSE DEPARTMENT SOURCES SECRETARY ASPIN FOR INSTANCE HAS DECIDED ONLY TO TRIM BUSH ADMINISTRATION PLANS FOR LOCKHEED CORP'S F22 AIR FORCE FIGHTER JET AND TO LEAVE LARGELY UNTOUCHED UPGRADED VERSIONS OF THE F18 ATTACK PLANE MCDONNELL DOUGLAS IS WORKING ON FOR THE NAVY IN ADDITION THE BOTTOMUP REVIEW IS EXPECTED TO KEEP 12 AIRCRAFT CARRIERS IN OPERATION TWO MORE THAN THE PENTAGON HAD BEEN CONSIDERING AND MR ASPIN WILL SEEK BARELY 15 DEEPER CUTS IN THE OVERALL SIZE OF THE ARMY AND THE AIR FORCE THAN PROPOSED BY PRESIDENT BUSH BUT UNTIL NOW DETAILS OF THE JOINT NAVYAIR FORCE DEVELOPMENT IDEA CALLED THE JOINT ADVANCED STRIKE TECHNOLOGY PROGRAM HAVEN'T LEAKED OUT THE CONCEPT STOPS SHORT OF MANDATING THE SERVICES TO ACTUALLY SHARE THE SAME PLANE DESPITE MONTHS OF SPECULATION IN THE PRESS FOR EXAMPLE MR ASPIN ISN'T EXPECTED TO ORDER THE AIR FORCE TO ADOPT VERSIONS OF THE NAVY'S FUTURE F18 MODELS IN HIS RECENT MEMO TO NAVY AND AIR FORCE BRASS HOWEVER MR DEUTCH MADE IT CLEAR THAT THE CLINTON TEAM IS DETERMINED TO GO FURTHER THAN EVER BEFORE IN TRYING TO ELIMINATE PAROCHIAL SERVICE RIVALRIES FROM BIGTICKET DEVELOPMENT PROJECTS MR DEUTCH ORDERED THE HEADS OF THE NAVY AND AIR FORCE TO COME UP WITH JOINT BUDGETS AND SCHEDULES TO SUPPORT ALL ASPECTS OF DEVELOPING COMMON COMPONENTS AND HE MANDATED THAT LEADERSHIP OF THE PROGRAM ROTATE BETWEEN THE SERVICES EVERY THREE YEARS THE PLAN UNDOUBTEDLY FACES AN UPHILL BATTLE SERVICE RIVALRIES HAVE WRECKED MOST PREVIOUS EFFORTS AT JOINT DEVELOPMENT AND CONGRESS MAY BE RELUCTANT TO INVEST HEAVILY IN MOREADVANCED PLANES WHEN THE NAVY AND AIR FORCE FACE GREAT DIFFICULTY IN PAYING FOR ALL THE AIRCRAFT ALREADY IN PRODUCTION NEVERTHELESS THE JOINT SERVICE APPROACH CLEARLY IS ONE WAY PENTAGON LEADERS HOPE TO KEEP BOTH MCDONNELL DOUGLAS AND LOCKHEED AS PRIME MILITARYAIRPLANE MAKERS DESPITE POSTCOLD WAR CUTBACKS THERE IS ROOM FOR MORE THAN ONE MAJOR AIRPLANE COMPANY SERVING THE DEFENSE DEPARTMENT DEPUTY SECRETARY WILLIAM PERRY SAID IN AN INTERVIEW EARLIER THIS SUMMER IN LOCKHEED'S CASE IT HOPES TO CAPITALIZE ON ITS HEFTY F22 INVESTMENT TO GAIN THE UPPER HAND UNDER THE PENTAGON'S NEW RULES THE INDUSTRY IS ALMOST IN A DARWINIAN MODE YOU JUST CAN'T KEEP MAKING THE SAME INVESTMENT OVER AND OVER AGAIN IN THIS BUDGET ENVIRONMENT SAID TOM BURBAGE VICE PRESIDENT OF LOCKHEED'S MILITARY AIRPLANE UNIT IN MARIETTA GA MCDONNELL DOUGLAS ON THE OTHER HAND IS BETTING THAT IT WILL BE ABLE TO DEMONSTRATE THE VALUE AND RELIABILITY OF MANY COMPONENTS BY PHASING THEM IN MORE GRADUALLY THROUGH ITS EXPANDING ARRAY OF F18 MODELS WE HAVE THE ABILITY TO FIGURE OUT HOW TO PROVIDE ADVANCED SYSTEMS AT LOWER COSTS MR TRICE SAID 9308300005 930830 TECHNOLOGY ELI LILLY & CO DEVICE FOR HEART TREATMENT GETS FDA CLEARANCE INDIANAPOLIS ELI LILLY & CO RECEIVED MARKETING CLEARANCE FROM THE FOOD AND DRUG ADMINISTRATION FOR AN INTRAVENOUS SYSTEM DESIGNED TO PERMIT LESS INVASIVE PROCEDURES FOR IMPLANTING CARDIAC DEVICES KNOWN AS DEFIBRILLATORS THE SOCALLED ENDOTAK SYSTEM ROUTES A CATHETER THROUGH A VEIN DIRECTLY TO THE HEART AND IS CONNECTED TO A DEFIBRILLATOR IMPLANTED ELSEWHERE IN THE BODY BY SNAKING THE WIRE TO THE HEART THROUGH THE CIRCULATORY SYSTEM THE ENDOTAK SYSTEM AVOIDS THE NEED FOR THE EXTENSIVE AND INHERENTLY RISKY OPENCHEST SURGERY THAT OTHER DEFIBRILLATOR SYSTEMS TYPICALLY REQUIRE IN ORDER TO ATTACH THE ELECTRIC WIRE OR LEAD THE NEW SYSTEM MANUFACTURED BY LILLY'S CARDIAC PACEMAKERS INC UNIT IS EXPECTED TO SHORTEN HOSPITAL STAYS DEFIBRILLATORS DELIVER A JOLT OF ELECTRICITY THAT CAUSES A CARDIAC PATIENT'S HEART TO REGAIN ITS NORMAL RHYTHM IN THE EVENT OF AN EPISODE OF TOORAPID HEARTBEAT THE CARDIAC PACEMAKERS UNIT HAS BEEN SELLING THE ENDOTAK SYSTEM IN EUROPE SINCE LATE 1991 AND CPI SAID MORE THAN 90 OF ALL THE IMPLANTABLE DEVICES IT CURRENTLY SELLS USES THE SYSTEM PATIENTS JUST DON'T WANT GO THROUGH AN OPENCHEST PROCEDURE UNLESS THEY ABSOLUTELY HAVE TO SAID A SPOKESWOMAN THE FDA'S APPROVAL FOR THE ENDOTAK LEADS COVERS ITS USE WITH ALL MODELS OF CPI DEFIBRILLATORS SOLD IN THE US ADVANCED MODELS OF THOSE DEFIBRILLATORS WHICH ARE UNDERGOING TESTING AREN'T COVERED BY THE CLEARANCE RIVAL MEDTRONIC INC FILED A REQUEST WITH THE FDA FOR PERMISSION TO MARKET A COMPETING LEAD SYSTEM BUT IS THOUGHT TO BE A FEW MONTHS BEHIND LILLY IN THE APPROVAL PROCESS 9308300004 930830 ERCROS PRETAX LOSS IN FIRST HALF SHRANK REVENUE FELL SPECIAL TO THE WALL STREET JOURNAL MADRID THE TROUBLED SPANISH CHEMICAL GROUP ERCROS SA CONTROLLED BY THE KUWAIT INVESTMENT OFFICE SAID IT NARROWED ITS PRETAX LOSSES TO 86 BILLION PESETAS 637 MILLION IN THE FIRST SIX MONTHS OF 1993 FROM A LOSS OF 2179 BILLION PESETAS IN THE FIRST SIX MONTHS OF 1992 THE COMPANY WHICH HAS BEEN IN RECEIVERSHIP SINCE JULY 1992 CREDITED THE TURNAROUND PARTIALLY TO AN EXTRAORDINARY GAIN OF 577 MILLION PESETAS IN THE LATEST PERIOD COMPARED WITH AN EXTRAORDINARY LOSS OF 516 BILLION PESETAS IN THE YEAREARLIER HALF ERCROS SAID A 43 DROP IN REVENUE TO 4839 BILLION PESETAS FROM 8441 BILLION PESETAS IN THE FIRST HALF OF 1992 WAS CAUSED BY THE SALE OF ITS MINING UNIT RIO TINTO MINERA SA AND THE REMOVAL OF THE MINING COMPANY'S RESULTS FROM ERCROS'S BALANCE SHEET THE US GROUP FREEPORTMCMORAN INC BOUGHT RIO TINTO MINERA EARLIER THIS YEAR SPANISH NEWS REPORTS FRIDAY ALSO SAID THE GOVERNMENT HAD APPROVED A ONEYEAR TRIAL TAKEOVER OF ERCROS'S MONEYLOSING FERTILIZER SUBSIDIARY FESAENFERSA SA BY FREEPORTMCMORAN A SPOKESMAN FOR THE NEW ORLEANS COMPANY SAID THE REPORTS WERE GENERALLY CORRECT BUT WOULDN'T CONFIRM OR DENY THAT FREEPORTMCMORAN HAD RECEIVED GOVERNMENT APPROVAL FOR THE TRIAL TAKEOVER FREEPORTMCMORAN FIRST EXPRESSED INTEREST MORE THAN A YEAR AGO IN FESAENFERSA WHICH IS LAYING OFF AS MANY AS 1500 WORKERS AND HASN'T PAID EMPLOYEES FOR THREE MONTHS LARGE LOSSES AT FESAENFERSA HELPED TRIGGER ERCROS'S COLLAPSE SPARKING OFF A STRING OF FAILURES ELSEWHERE IN THE KUWAIT INVESTMENT OFFICE'S SPANISH HOLDINGS IN MADRID SHARE TRADING FRIDAY ERCROS STOCK CLOSED AT 154 PESETAS 114 UP 20 PESETAS OR 15 9308300003 930830 WORLD MARKETS MADRID BOLSA EUROPE'S TOP GAINER IN AUGUST APPEARS TO HAVE THE MOST ROOM FOR FURTHER RISE BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL AFTER A BLISTERING MONTH ON EUROPEAN BOURSES IT WOULD BE REASONABLE TO EXPECT A BREATHER BUT THAT WOULD BE WRONG INVESTMENT STRATEGISTS SAY THE PARTY WILL GO ON PARTICULARLY IN SPAIN THE TOP PERFORMING MARKET OF AUGUST PRICES IN MADRID HAVE SURGED NEARLY 12 IN THE PAST FOUR WEEKS FOLLOWING THE VIRTUAL SUSPENSION OF THE EUROPEAN MONETARY SYSTEM IN THAT PERIOD STOCKS GAINED 10 IN ITALY 55 IN BRITAIN AND GERMANY AND 45 IN FRANCE AND THE NETHERLANDS IT'S A FLOW OF FUNDS STORY SAYS INIGO LECUBARRI AN ANALYST AT SALOMON BROTHERS IN LONDON SPAIN HAS BEEN VERY CHEAP FOR YEARS AND OVERSEAS INVESTORS HAVE STARTED TO SEE THAT THE TIMING OF THE BULLISHNESS IN SPAIN AND ELSEWHERE IN EUROPE ISN'T COINCIDENTAL INVESTORS ARE BETTING THAT THE NEW 15 FLUCTUATION BANDS IN THE EXCHANGE RATE MECHANISM WILL ALLOW FOR FASTER AND DEEPER RATE CUTS ACROSS EUROPE WHILE THE BRITISH POUND AND THE ITALIAN LIRA DEPARTED FROM THE SYSTEM NEARLY A YEAR AGO THE FACT THAT OTHERS ARE FREE FROM THE ERM SHACKLES IMPROVES CHANCES FOR A EUROPEWIDE RECOVERY NEXT YEAR EVEN IN GERMANY THE MECHANISM'S DE FACTO DEMISE COULD MEAN LOWER RATES SOONER BECAUSE A STRONGER MARK REDUCES IMPORTED INFLATION AND TAKES AWAY A KEY REASON FOR TIGHT MONETARY POLICY BUT FRANCOGERMAN POLITICS ASIDE STOCK MARKET PLAYERS BELIEVE THAT OF ALL EUROPEAN COUNTRIES SPAIN HAS THE GREATEST POTENTIAL FOR SHARP INTEREST RATE REDUCTIONS ALTHOUGH THE BANK OF SPAIN HASN'T YET GIVEN CLEAR INDICATIONS ONE WAY OR THE OTHER MANY INVESTORS ARE BETTING THE NEWFOUND FREEDOM WITHIN THE ERM WILL BRING SPANISH SHORTTERM RATES DOWN TO ABOUT 8 BY THE END OF THE YEAR FROM ABOUT 1025 CURRENTLY SPANISH REAL INTEREST RATES WHICH ARE TYPICALLY CALCULATED BY SUBTRACTING PROSPECTIVE INFLATION RATES FROM THE YIELD ON LONGTERM GOVERNMENT BONDS ARE CONSIDERED UNSUSTAINABLY HIGH THEY ARE ABOUT 425 COMPARED WITH 2 IN THE US AND 250 IN GERMANY PERHAPS MORE IMPORTANT THAN THE INTEREST RATE ARGUMENT SPAIN SEEMS TO BE JUST ABOUT THE LAST SPOT LEFT AMONG THE WORLD'S MAJOR ECONOMIES WHERE STOCK MARKET VALUATIONS LOOK TO BE BARGAINS EQUITIES IN MADRID ARE TRADING AROUND 13 TIMES 1993 EARNINGS A STEAL COMPARED WITH 25 TIMES EARNINGS IN GERMANY 22 IN FRANCE AND 17 IN THE US AND BRITAIN WHILE EQUITY PRICES IN BRITAIN AND FRANCE FOR EXAMPLE HIT RECORD HIGHS SEVERAL TIMES LAST MONTH SPANISH PRICES ARE STILL ABOUT 85 AWAY FROM THEIR SEPTEMBER 1989 PEAK ON FRIDAY MADRID SHARES ROSE 12 TO A THREEYEAR HIGH OLIVER KAMM EUROPEAN STRATEGIST AT JAMES CAPEL & CO IN LONDON RECOMMENDS AN OVERWEIGHT POSITION IN SPAIN BASED ON THE MARKET'S POTENTIAL TO GAIN FROM LOW RATES AND ON SPAIN'S LIKELY PROGRESS IN BOOSTING PRODUCTIVITY HOWEVER HE SAYS THE MAIN REASON FOR INVESTING IN MADRID IS THE CATCHUP FACTOR RELATIVE TO OTHER EUROPEAN BOURSES MANY ANALYSTS THINK THE BOLSA HAS ANOTHER 10 TO RISE BEFORE IT SETTLES DOWN AND TRADES IN LINE WITH THE REST OF EUROPE MUCH WILL DEPEND ON THE POLITICAL ENVIRONMENT THE COALITION GOVERNMENT OF PRIME MINISTER FELIPE GONZALEZ HAS THE TRICKY TASK OF NEGOTIATING A WAGE PACT WITH PUBLICSECTOR UNIONS OVER THE NEXT FOUR WEEKS THAT COULD SHARPLY INCREASE THE NATION'S COMPETITIVENESS IF THE TALKS FAIL THOUGH IT COULD MEAN A WORSENING OF THE COUNTRY'S ALREADY HEFTY BUDGET DEFICIT INVESTORS SHOULD MONITOR THE WAGE AGREEMENT VERY CAREFULLY SAYS JOSE CEREZO AN ANALYST AT GOLDMAN SACHS INTERNATIONAL IN LONDON A GOOD AGREEMENT COULD BRING EVEN SHARPER GAINS BUT THERE ARE RISKS AS WELL IF WAGES ARE SETTLED AT LEVELS THAT ARE TOO HIGH LONDON STOCKS ADVANCED TO A RECORD FRIDAY ON A BET THAT BRITISH COMPANIES WILL GAIN CONFIDENCE IN THE ECONOMY AS THE FIRSTHALF RESULTS SEASON APPROACHES TOKYO PRICES ROSE AMID WIDESPREAD EXPECTATIONS THAT THE BANK OF JAPAN WILL EASE ITS DISCOUNT RATE SOON WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11252 UP 055 REFLECTING INCREASES IN ASIA/PACIFIC AND EUROPEAN MARKETS AND A DROP IN AMERICAN MARKETS STEEL STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11725 UP 239 OR 208 WITH KAWASAKI STEEL OF JAPAN POSTING A 506 GAIN IN ITS LOCAL CURRENCY HEALTH CARE STOCKS TRAILED AT 10592 DOWN 378 OR 345 WITH NATIONAL MEDICAL ENTERPRISES OF THE US SLIDING 2809 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100 INDEX GAINED 214 TO 31006 THE FT 30 INDEX ROSE 195 TO 2413 VOLUME WAS 5292 MILLION SHARES COMPARED WITH 6709 MILLION THE PREVIOUS DAY CORPORATE CHAIRMEN SEEM TO BE LESS CAUTIOUS ABOUT BRITAIN'S ECONOMIC RECOVERY AS THEY EMBRACE NEWFOUND EXPECTATIONS OF LOWER INTEREST RATES THEIR OPTIMISM COULD HAVE MORE IMPACT ON STOCKS THAN THE FIRSTHALF CORPORATE RESULTS IN FRANKFURT EQUITIES ENDED HIGHER IN THIN TRADING RECOVERING FROM EARLY LOSSES THE DAX 30STOCK INDEX OF BLUECHIPS ROSE 345 POINTS TO 190460 NEAR ITS HIGH FOR THE DAY THE LATE RALLY INDICATED THAT 1900 IS A FIRM SUPPORT LEVEL FOR THE DAX PARIS SHARES CLIMBED TO ANOTHER RECORD AMID EXPECTATIONS THAT INTEREST RATE CUTS ARE INEVITABLE IN MILAN PRICES ADVANCED 1 LED BY CONSTRUCTION ISSUES AFTER ITALY'S GOVERNMENT CLEARED SOME MAJOR PUBLIC WORKS CONTRACTS IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ADDED 7031 POINTS THURSDAY CLIMBED 19992 TO 2079168 ON MONDAY THE NIKKEI ROSE 37 POINTS TO CLOSE THE MORNING SESSION AT 2082868 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 330 MILLION SHARES UP FROM 1985 MILLION SHARES THURSDAY GAINERS SWAMPED LOSERS 827169 THE TOKYO STOCK PRICE INDEX OR TOPIX OF FIRSTSECTION ISSUES WHICH ROSE 509 POINTS THURSDAY GAINED 1618 TO 167054 IN SYDNEY PRICES EDGED TO A NEW SIXYEAR HIGH ON STRONG OFFSHORE BUYING IN LARGE STOCKS IN SEOUL STOCKS PLUNGED FOR THE FIFTH STRAIGHT DAY A GROUP OF ANGRY INVESTORS RALLIED IN DOWNTOWN SEOUL DEMANDING MARKETBOOSTING MEASURES FROM THE SOUTH KOREAN GOVERNMENT 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 9308300002 930830 BUMP IN THE ROAD INVESTIGATIONS JOLT MOBILE HOME FIRM JIM CLAYTON BUILT KEY EMPLOYEE IS UNDER GUN AS TAX PRACTICES DRAW FIRE AT CLAYTON HOMES BUYING ON THE BUBBA PLAN BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL KNOXVILLE TENN FOR A LONG WHILE ALL THE NEWS SEEMED GOOD AT CLAYTON HOMES INC FROM ITS ORIGINS IN THE 1960S AS A USEDCAR LOT RUN BY TWO BROTHERS FROM FINGER TENN IT GREW INTO ONE OF THE MOST SUCCESSFUL MOBILEHOME COMPANIES IN THE COUNTRY SALES AND EARNINGS HAVE SET RECORDS EVERY YEAR SINCE 1980 ITS COMMON STOCK NEARLY QUINTUPLED IN VALUE IN THE PAST THREE YEARS ITS HARDCHARGING CHAIRMAN AND CHIEF EXECUTIVE 59YEAROLD JAMES LEE CLAYTON CUT AN EXUBERANT SWATH IN THE EARLY DAYS EVEN DOING DUETS ON HIS COMPANY'S TV SHOW WITH A LOCAL SINGER NAMED DOLLY PARTON BUT RECENTLY THE NEWS FROM CLAYTON HOMES HAS TAKEN A DIFFERENT TURN FIRST CAME WORD IN JUNE OF AN INVESTIGATION BY THE TENNESSEE DEPARTMENT OF REVENUE INTO CLAYTON'S FAILURE TO PAY CERTAIN SALES TAXES THEN THIS MONTH TWO OUTSIDE DIRECTORS ABRUPTLY RESIGNED PROTESTING A DECISION BY THE BOARD TO SUSPEND ITS OWN INVESTIGATION INTO THE TAX INQUIRY AND SAYING CRYPTICALLY IN IDENTICAL RESIGNATION LETTERS TO THE BOARD THAT THE PROBE ALSO HAD TOUCHED A NUMBER OF OTHER MATTERS OF WHICH YOU ARE AWARE AND ON AUG 17 A PARTNERSHIP OWNED BY MR CLAYTON AND HIS MOTHER FILED A CIVIL SUIT IN COUNTY COURT HERE ALLEGING THAT A FORMER CLAYTON HOMES EMPLOYEE WHOM THE COMPANY BLAMES FOR ITS TAX PROBLEMS ALSO EMBEZZLED FROM THE PARTNERSHIP IT TURNS OUT THAT COMPANY ACCOUNTANTS AND OTHER INSIDERS LONG HELPED MANAGE MR CLAYTON'S PERSONAL FINANCES INCLUDING INVESTMENTS AND TAX RETURNS LAST YEAR HE PAID THE COMPANY 3000 FOR THOSE SERVICES THE TURMOIL ECHOED ON WALL STREET THE PRICE OF CLAYTON'S SHARES ON THE NEW YORK STOCK EXCHANGE FELL NEARLY 18 IN THE WEEK FOLLOWING THE ANNOUNCEMENT OF THE BOARD RESIGNATIONS TO 24875 FROM 3025 IT CLOSED FRIDAY AT 2575 THE COMPANY SAYS THAT ITS PROBLEMS ARE RELATIVELY MINOR AND UNDER CONTROL AN ASSERTION THAT MANY OBSERVERS INSIDE AND OUTSIDE THE COMPANY FIND BELIEVABLE IT SAYS IT DOESN'T EXPECT ANY MORE SURPRISES FROM INVESTIGATORS EARNINGS ARE STRONG AND CLAYTON SAYS THERE IS NO REASON TO BELIEVE THEY WILL BE AFFECTED WHAT'S MORE THE BOARD RECENTLY MOVED TO RESUME THE SUSPENDED TAX INVESTIGATION THAT PROBE IS OVERSEEN BY THE BOARD'S AUDIT COMMITTEE COMPRISING THE THREE OUTSIDE DIRECTORS TWO OF THEM NEW ONES WHO FILLED THE RECENT VACANCIES THE BOARD RETAINED A NEW LAW FIRM POWELL GOLDSTEIN FRAZER & MURPHY OF ATLANTA TO HANDLE THE INQUIRY MR CLAYTON SAYS THE TWO FORMER DIRECTORS OVERREACTED WHEN THEY RESIGNED BUT SOME OF THOSE CLOSE TO CLAYTON SEE ITS TROUBLES AS SIGNS OF A DEEPER FLAW ONE THAT IS COMMON TO FASTGROWING BUSINESSES RUN BY STRONGWILLED ENTREPRENEURS ITS STRUCTURE HASN'T KEPT PACE WITH ITS GROWTH THE SYSTEMS HAVEN'T GROWN AS FAST AS THE FIRM HAS GROWN SAYS C WARREN NEEL DEAN OF THE UNIVERSITY OF TENNESSEE COLLEGE OF BUSINESS ADMINISTRATION WHO IS ONE OF THE NEW DIRECTORS MANAGEMENT'S PREOCCUPATION HAS BEEN WITH CONTINUED GROWTH CONTROLS MAY BE ANTITHETICAL TO THE CULTURE THAT CREATED THE FIRM THE HEART OF THE CURRENT PROBLEMS SEEMS TO BE THE STATE TAX INVESTIGATION THE COMPANY ADMITS IT FAILED TO PAY SALES TAXES ON UNITS SOLD AT FIVE MOBILEHOME PARKS IT OWNS IN TENNESSEE IN ADDITION MR CLAYTON SAYS HE PERSONALLY FAILED TO PAY THE SALES TAXES AT FIVE MOBILEHOME PARKS HE OWNS THE COMPANY SAYS THAT ON THE ADVICE OF ARTHUR ANDERSEN & CO THE ACCOUNTANTS RETAINED BY ITS BOARD'S AUDIT COMMITTEE IT RECENTLY PAID 163000 IN BACK TAXES AND MR CLAYTON PAID 175000 THE COMPANY BLAMES ITS FAILURE TO FILE ON ONE MAN WARREN SCHEDE FORMER CONTROLLER OF ITS RETAIL DIVISION WHO RESIGNED WHEN THE TAX INQUIRY WAS ANNOUNCED IN JUNE MR SCHEDE DECLINED NUMEROUS REQUESTS FOR COMMENT MR CLAYTON ASSERTS THAT MR SCHEDE ALSO HANDLED HIS PERSONAL INVESTMENTS AND BLAMES HIM FOR THE CHAIRMAN'S OWN FAILURE TO FILE SALESTAX RETURNS MR SCHEDE IS THE DEFENDANT IN THE CIVIL SUIT THE CLAYTON PARTNERSHIP FILED HERE TWO WEEKS AGO THE SUIT ALLEGES THAT MR SCHEDE DIVERTED MONEY FROM THE PARTNERSHIP'S GREEN ACRES MOBILE HOME PARK TO HIS PERSONAL BANK ACCOUNTS USING IT TO BUY REAL ESTATE CARS BOATS AND JEWELRY MR CLAYTON ALLEGES THAT THE TOTAL AMOUNT DIVERTED FROM THAT AND OTHER FAMILY PARTNERSHIPS COULD BE HIGHER THAN 3 MILLION IN A HEARING LAST WEEK THE COUNTY JUDGE FROZE MR SCHEDE'S BANK ACCOUNTS AND ENJOINED HIM FROM SELLING 19 REALESTATE PROPERTIES IN THE COUNTY PENDING TRIAL FOR WHICH NO DATE HAS BEEN SET STATE TAX OFFICIALS SAY THEY HAVE FOUND NO EVIDENCE OF WRONGDOING BY TOP MANAGEMENT THOUGH THEY ARE CONTINUING TO LOOK AT THIS POINT MR SCHEDE IS THE ONLY PERSON UNDER INVESTIGATION SAYS COMMISSIONER OF REVENUE JOE HUDDLESTON RANDALL NICHOLS DISTRICT ATTORNEY GENERAL FOR KNOX COUNTY SAYS HIS OFFICE STARTED A CRIMINAL INVESTIGATION OF MR SCHEDE EARLY THIS MONTH AFTER A COMPLAINT MADE TO US BY THE COMPANY HE SAYS HE ISN'T LOOKING INTO MANAGEMENT'S AFFAIRS THE TWO DIRECTORS WHO RESIGNED WON'T SPECIFICALLY DISCUSS THEIR REASONS FOR DOING SO ALTHOUGH THEY SHARPLY CRITICIZE MANAGEMENT'S HANDLING OF THE AFFAIR IN THEIR RESIGNATION LETTERS THEY ALSO STOP SHORT OF ENDORSING THE COMPANY POSITION THAT THE ACCOUNTING LAPSES WERE THE WORK OF AN INDIVIDUAL I CAN'T TELL YOU IN ANY WAY IT'S CONFINED TO ONE PERSON SAYS WILLIAM LOMICKA WHO HEADED THE BOARD'S AUDIT COMMITTEE UNTIL HIS RESIGNATION IT MAY BE ONE PERSON I DON'T KNOW THE ANSWER THAT'S WHAT WE WERE LOOKING INTO THE OTHER DIRECTOR WALLACE RASMUSSEN A 79YEAROLD FORMER CHIEF EXECUTIVE OF BEATRICE FOODS CO SAYS I HAD NO FACTS THAT THERE WAS ANY WRONGDOING ON JIM CLAYTON'S PART WITH THE EXCEPTION THAT HE HAD THE INTERMINGLING OF COMPANY BUSINESS AND HIS OWN I HAD ALWAYS BEEN AGAINST THAT KIND OF INTERMINGLING BETWEEN COMPANY AND PERSONAL BUSINESS SOMETIMES YOU HAVE TO HIT A MULE ON THE HEAD WITH A TWOBYFOUR TO GET THEIR ATTENTION IN ANY CASE THE TROUBLES TO SOME EXTENT REFLECT ON MR CLAYTON FOR THE COMPANY BY MOST ACCOUNTS MIRRORS HIS OWN PERSONALITY THE SON OF A TENANT FARMER JIM CLAYTON GREW UP PICKING COTTON WITH HIS FATHER AND HIS YOUNGER BROTHER JOE NOW 57 IN THE MID1950S WHILE JIM CLAYTON WAS A STUDENT AT THE UNIVERSITY OF TENNESSEE HERE THE BROTHERS STARTED SELLING USED CARS THEIR BUSINESS FAILED IN 1961 THEY THEN BEGAN IMPORTING VOLKSWAGEN BEETLES AND VOLVOS IN 1966 THEY ADDED MOBILE HOMES BY 1970 THEY HAD BOUGHT AN ABANDONED TOBACCO WAREHOUSE AND STARTED MAKING THEIR OWN MOBILE HOMES WHICH THEY SOLD FOR 3295 APIECE THEY HAD SOME UNCONVENTIONAL HELP IN BUILDING SALES JIM CLAYTON'S VOICE HE SPONSORED AND STARRED IN A WEEKLY VARIETY SHOW ON LOCAL TELEVISION SOMETIMES TEAMING WITH MS PARTON BUY YOUR CARS WHERE THE PRICES ARE SLIM GO TO CLAYTON MOTORS AND ASK FOR JIM HE CROONED IN THE COMMERCIALS HIS BROTHER JOE NOW RUNS CLAYTON MOTORS INC WITH SIX DEALERSHIPS WHICH HE SPLIT OFF FROM CLAYTON HOMES IN 1981 HE ALSO IS A DIRECTOR OF CLAYTON HOMES IN THE 1980S CLAYTON HOMES TOOK OFF REVENUE BALLOONED TO 260 MILLION IN 1990 FROM 29 MILLION IN 1980 FOR THE FISCAL YEAR ENDED JUNE 30 REVENUE JUMPED 28 TO 476 MILLION WHILE EARNINGS ROSE 37 TO 54 MILLION THE COMPANY'S MOBILE HOMES WERE AS EYECATCHING AS ITS EARNINGS THEY CAME WITH HARDWOOD FLOORS BAY WINDOWS MAHOGANY CABINETS EVEN JACUZZIS BUT CLAYTON NOT ONLY SOLD MOBILE HOMES IT ALSO FINANCED THEM IN 1980 CLAYTON WAS SERVICING 15 MILLION IN LOANS BY 1990 THAT SUM WAS UP TO 420 MILLION THE COMPANY STARTED A POPULAR BIWEEKLY PAYMENT PLAN CALLED BUBBA BUYING UNDER THE BIWEEKLY BUDGET ADVANTAGE THE 1980S WERE ALSO A TIME FOR FOLKS AROUND KNOXVILLE TO TAKE NOTICE OF JIM CLAYTON A MAN WHO ORDERS TAILORMADE DRESS SHIRTS YET STILL SIPS GENERIC COLA HE BUYS AT SAM'S CLUB HE GAVE HEAVILY TO LOCAL CAUSES INCLUDING 3 MILLION TO THE KNOXVILLE MUSEUM OF ART AFTER BEING TURNED DOWN TWICE THE COMPANY SAYS HE FINALLY WAS ADMITTED TO THE CHEROKEE COUNTRY CLUB THE LOCAL BASTION OF EXCLUSIVITY AND IN PERHAPS THE MOST VISIBLE MOVE OF ALL LAST YEAR HE BOUGHT A LOCAL BANK HE CALLS BANKFIRST WITH 70 MILLION IN ASSETS FOR ITS HEADQUARTERS HE BOUGHT A PROMINENT BUILDING DOWNTOWN JUST A BLOCK FROM THE BANK THAT FORCED HIS USEDCAR BUSINESS INTO BANKRUPTCY 32 YEARS AGO AT CLAYTON HOMES MR CLAYTON'S HARDDRIVING STYLE EARNED HIM THE NICKNAME TASMANIAN DEVIL AT A MANAGERS' MEETING LAST YEAR HE PERSUADED ABOUT 200 UNDERLINGS TO GET UP AT 5 AM ON A SATURDAY AND PLAY WAR GAMES WITH PAINTBALLSPOUTING GUNS FOR NEARLY 12 HOURS ACCORDING TO ONE PARTICIPANT EMPLOYEES SAY HE SOMETIMES CHEWS OUT UNDERLINGS LOUDLY AND PUBLICLY THEY ARE ALL YES' PEOPLE SAYS RENITA SMITH WHO WORKED AS AN EXECUTIVE ASSISTANT AT THE COMPANY FOR SIX YEARS IT'S EITHER JIM'S WAY OR THE HIGHWAY ONE HALLWAY BULLETIN BOARD HAS PHOTOS OF EVERYONE WHO HAS LEFT IN THE CALENDAR YEAR WITH A TERMINATION DATE INCLUDED MR CLAYTON WHOSE 12 MILLION SHARES GIVE HIM A 26 STAKE IN THE COMPANY SAYS HE DEVOTES MOST OF HIS ENERGY TO RETAIL SALES IN THAT AREA HE WORKED OCCASIONALLY WITH THE RETAIL DIVISION'S CONTROLLER MR SCHEDE BUT AS THE NUMBER OF RETAIL CENTERS CLIMBED TO 143 THIS YEAR THE NUMBER OF ACCOUNTANTS WORKING FOR MR SCHEDE REMAINED THE SAME TWO JIM CLAYTON DOESN'T HAVE A LOT OF USE FOR ACCOUNTANTS HE THINKS OF THEM AS OVERHEAD SAYS MICHAEL HEFFNER A FORMER CLAYTON ACCOUNTANT WHO WORKED ALONGSIDE MR SCHEDE THE COMPANY IS A RETAIL MAN'S COMPANY MR SCHEDE WAS ONE ACCOUNTANT HE SEEMED TO TAKE TO MR SCHEDE FIRST INTERVIEWED IN 1978 TO WORK AS A COPILOT ON MR CLAYTON'S CORPORATE PLANE HE GOT HIRED INSTEAD AS A BOOKKEEPER MR CLAYTON SAYS THE MEN SHARED AN INTEREST IN FLYING MR SCHEDE HAD HIS OWN PLANE AND MR CLAYTON ONCE LET MR SCHEDE COPILOT HIS CESSNA CITATION II JET LAST YEAR MR SCHEDE WAS ONE OF ONLY THREE EXECUTIVES TO PLEDGE TO INVEST IN MR CLAYTON'S NEW BANK ALTHOUGH IN THE END NONE DID SO AS DIVISIONAL CONTROLLER MR SCHEDE OVERSAW THE FINANCIAL AFFAIRS OF ALL THE COMPANY'S RETAIL CENTERS A JOB THAT RANGED FROM CHECKING THEIR BOOKS TO PAYING THEIR BILLS AND SALES TAXES MR CLAYTON SAYS MR SCHEDE ALSO HANDLED THE ACCOUNTING FOR THE CEO'S OWN MOBILEHOME PARKS COWORKERS SAY MR SCHEDE HAD LITTLE SUPERVISION HE OPERATED ON HIS OWN AS A LOT OF OTHER PEOPLE DO THERE ESPECIALLY PEOPLE WHO HAVE BEEN AROUND QUITE SOME TIME SAYS C ROY JONES A FORMER DIRECTOR OF HUMAN RESOURCES WHO LEFT LATE LAST YEAR MR CLAYTON NOW SAYS MR SCHEDE WAS GIVEN TOO MUCH LATITUDE REFERRING TO MR SCHEDE'S ACCOUNTING AREA HE ADDS AS THE COMPANY GOT LARGER AND LARGER I WASN'T THAT CLOSE TO IT MR SCHEDE WAS ONE OF SEVERAL CLAYTON HOMES EMPLOYEES WHO HELPED MANAGE JIM CLAYTON'S PERSONAL FINANCES JERRY ELEDGE A FORMER CLAYTON HUMANRESOURCES DIRECTOR SAYS THAT IN ONE INVESTIGATION HE CONDUCTED FOR THE COMPANY MR CLAYTON'S PERSONAL BUSINESS WAS SO ENTANGLED WITH THE PAYROLL AND PAPERWORK THAT WE COULDN'T SEPARATE IT OUT MR CLAYTON NOW SAYS IT WAS A MISTAKE TO USE COMPANY ACCOUNTANTS ON PERSONAL BUSINESS EVEN THOUGH HE SAYS HE ALWAYS REIMBURSED THE COMPANY HE SAYS THAT WITHIN A YEAR HE WILL SELL HIS FIVE MOBILEHOME PARKS OR HIRE A FULLTIME STAFF TO HANDLE THEIR BOOKS WHEN NEWS OF THE TAX INVESTIGATION REACHED THE BOARD IN LATE MAY ITS RESPONSE WAS IMMEDIATE IT HAD ITS AUDIT COMMITTEE START AN INVESTIGATION OF THE COMPANY'S TAX AFFAIRS A NASHVILLE LAW FIRM WAS HIRED TO HANDLE THE WORK THE INVESTIGATORS SOON BEGAN PROBING AGGRESSIVELY FOR ANY EVIDENCE OF WRONGDOING AND IN THE VIEW OF SOME WHO WERE INTERVIEWED GUNNING FOR TOP EXECUTIVES THE INVESTIGATION SHIFTED TOWARD THE CHARACTER OF MANAGEMENT SAYS ONE INTERVIEWEE THE LAW FIRM BASS BERRY & SIMS WON'T COMMENT FINALLY MR CLAYTON DECIDED HE HAD HAD ENOUGH OF THE FIRM'S ADVERSARIAL APPROACH HE SAYS HUNDREDS OF THOUSANDS OF DOLLARS HAD BEEN SPENT AND THE BOARD STILL HADN'T HAD A REPORT AT A MEETING JULY 30 MR CLAYTON PERSUADED THE BOARD TO SUSPEND THE INVESTIGATION EFFECTIVELY FIRING THE LAW FIRM AND ARTHUR ANDERSEN WHOSE SERVICES THE LAW FIRM HAD RETAINED MESSRS LOMICKA AND RASMUSSEN DISSENTED ARGUING THAT THE INVESTIGATION SHOULD CONTINUE THEN TWO WEEKS LATER THEY QUIT WITH RESIGNATION LETTERS SAYING THEY DOUBTED ANY INVESTIGATION CAN PROPERLY BE LIMITED TO THE SALES TAX MATTER THE INVESTIGATION WE WERE CONDUCTING WAS CUT OFF WHEN WERE GATHERING A LOT OF FACTS MR RASMUSSEN SAYS NOW HE ADDS I'M TOO DAMN OLD TO GO AROUND BEING TAINTED SOON AFTER THE COMPANY APPOINTED TWO NEW OUTSIDERS TO THE BOARD MR NEEL THE BUSINESSSCHOOL DEAN AND JAMES COCKMAN WHO HEADS A GREENVILLE SC SEAFOOD COMPANY THE APPOINTMENTS AGAIN BRING TO THREE THE NUMBER OF OUTSIDERS ON THE EIGHTPERSON BOARD THE BOARD QUICKLY VOTED TO RESUME THE AUDIT COMMITTEE'S INVESTIGATION INTO THE TAX PROBLEMS AND IT HIRED A NEW LAW FIRM TO DO SO WE'RE WORKING WITHOUT CEASING SAYS MR COCKMAN A MEMBER OF THE AUDIT COMMITTEE WE CAN GET THIS BEHIND US CLAYTON MOTORS INC IN KNOXVILLE TENN DIVISION CLAYTON HOMES FINANCIAL OFFICER CLAYTON HOMES CLAYTON HOMES OF CRACKER BARREL OLD COUNTRY STORE INC A RESTAURANT CHAIN BASED IN LEBANON TENN INTERNATIONAL INC A PRIVATELY HELD SEAFOOD DISTRIBUTOR IN GREENVILLE SC BUSINESS ADMINISTRATION 9308300001 930804 REVIEW & OUTLOOK EDITORIAL THE 3/5 MEMBER THE GREATEST STAIN ON AMERICA'S FOUNDING WAS THE CONSTITUTION'S COMPROMISE APPORTIONING CONGRESSIONAL VOTES AMONG STATES ON THE BASIS OF THE FREE PERSONS PLUS THREEFIFTHS OF ALL OTHER PERSONS THANKS TO THE CIVIL WAR WE NO LONGER HAVE THREEFIFTHS PERSONS EXCEPT MAYBE FOR CONGRESSMAN GARY FRANKS LAST WEEK THE OTHER MEMBERS OF THE CONGRESSIONAL BLACK CAUCUS VOTED THAT MR FRANKS COULD ATTEND ONLY THE FIRST 30 MINUTES OF THEIR WEEKLY MEETINGS AS A SECONDTERM CONGRESSMAN FROM WATERBURY CONN MR FRANKS IS THE CAUCUS'S ONLY CONSERVATIVE AND ONLY REPUBLICAN HIS PRESENCE BEYOND SOME FRACTION OF A MEETING IS APPARENTLY AN AFFRONT TO THEIR SMOOTHRUNNING NODEBATE OPERATION I GUESS 38 TO 1 ISN'T AN EASY ENOUGH FIGHT FOR THEM THEY HAVE TO MAKE IT 38 TO ZERO MR FRANKS QUIPPED TO US LAST WEEK THE CAUCUS SETS THEMSELVES UP AS FIGHTING AGAINST BIGOTRY AND FOR MINORITIES THEN THEY GO AFTER THE ONLY MINORITY IN THEIR GROUP AND FOR ONLY ONE REASON BECAUSE HE HAS DIFFERENT VIEWS THE CLOSEST THING TO A CAUCUS BILL OF INDICTMENT IS A JULY 27 OPEN LETTER TO MR FRANKS FROM MISSOURI DEMOCRAT WILLIAM CLAY THE FIRST SENTENCE DECLARES MR CLAY'S PROFOUND DISAGREEMENT WITH YOUR LEGISLATIVE RECORD WHICH I BELIEVE TO BE INIMICAL TO THE PERMANENT INTERESTS OF BLACK FOLK MR CLAY IS FURIOUS THAT THE UPPITY MR FRANKS HAS SOMETIMES VOTED THE SAME WAY HOUSE REPUBLICAN WHIP NEWT GINGRICH HAS AS IF THIS IS SURPRISING FOR A FELLOW REPUBLICAN THIS INCLUDES VOTES ON SUCH NONRACIAL MATTERS AS FAMILY LEAVE MOTOR VOTER REGISTRATION PORKBARREL SPENDING BILLS AND NEW SOCIAL PROGRAMS WHAT DRIVES THE BLACK CAUCUS ESPECIALLY CRAZY IS MR FRANKS'S OPPOSITION TO RACIAL GERRYMANDERING AFTER THE SUPREME COURT'S RECENT SHAW V RENO DECISION THAT CALLED SUCH PRACTICES POLITICAL APARTHEID MR FRANKS INTRODUCED A BILL TO BAR THE CREATION OF CONGRESSIONAL DISTRICTS BASED MAINLY ON RACE WE SHOULD NOT HAVE LAWS THAT WOULD GIVE SOME AMERICANS A MANUFACTURED ADVANTAGE OVER OTHER AMERICANS HE SAID ON THE HOUSE FLOOR IT WOULD BE WRONG IF IT FAVORED WHITE AMERICANS AND IT IS EQUALLY AS WRONG TO FAVOR BLACK AMERICANS TO MOST LISTENERS THIS MAY SOUND LIKE MARTIN LUTHER KING JR BUT TO MR CLAY IT IS PATENTLY ILLOGICAL BECAUSE THESE IDEALISTIC VIEWS AREN'T CREDIBLE IN A COUNTRY IN WHICH RACISM IS ENDEMIC OF COURSE MR FRANKS MANAGED TO WIN A HIGHLY COMPETITIVE RACE IN A DISTRICT THAT IS ONLY 5 BLACK WHILE MOST OF THE NONFRACTIONAL CAUCUS MEMBERS ROLL UP HUGE MAJORITIES IN DISTRICTS TAILORED TO PREVENT COMPETITION YET MR FRANKS IS NOT THE ONLY BLACK POLITICIAN TO WIN IN A RACIALLY DIVERSE CONSTITUENCY SENATOR CAROL MOSELEY BRAUN IN ILLINOIS AND GOVERNOR DOUGLAS WILDER IN VIRGINIA PROVIDE EVEN MORE PROMINENT EXAMPLES IF THE WINNERS DIFFER ON WHERE THE INTERESTS OF BLACK FOLKS LIE THAT IS AN ARTIFACT OF ENTERING THE POLITICAL MAINSTREAM PERHAPS THE GREATEST IRONY HERE IS THAT THE BLACK CAUCUS ISN'T GETTING VERY MUCH FROM ITS LIBERAL DEMOCRATIC ALLIES IN THE CURRENT BUDGET DEBATE IT PUT ITS MUCHADVERTISED CLOUT BEHIND STIMULUS SPENDING AND EMPOWERMENT ZONES FOR CITIES THE FORMER IS GONE AND THE LATTER GUTTED TO A FEW DEMONSTRATION PROJECTS AS PART OF THE FLOOD RELIEF BILL THE CAUCUS GOT THE CRUMB OF EXTRA POCKET MONEY FOR SOME JOBTRAINING RECIPIENTS BUT AT LEAST THE CAUCUS RETAINED THREEFIFTHS OF THEIR OTHER PERSON INSTEAD OF EXPELLING HIM ENTIRELY PERHAPS THIS IS A TACIT RECOGNITION THAT THERE MAY BE A BETTER WAY AND THAT GARY FRANKS MAY HAVE SOMETHING TO TEACH THEM SEE RELATED LETTER LETTERS TO THE EDITOR THREEFIFTHS CLAUSE' FOILED SLAVEHOLDERS WSJ AUG 30 1993 9308040121 YY93 MM08 9308300149 930728 POOR PROSPECTS IN A PORTLAND HOT TUB YOUNG GRADS' ANXIETY BUBBLES TO THE SURFACE TWENTYSOMETHINGS FIND LIFE BLEAK AS THEY SORT MAIL FRET ABOUT THEIR POVERTY A FINE ARTS DEGREE HA HA' BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL PORTLAND ORE AT THE INNER CITY HOT TUB HOUSE HERE A DOZEN MEN AND WOMEN IN THEIR MIDTWENTIES LOUNGE NAKED IN WHAT HAS BECOME A WEEKLY RITUAL SEPARATED ONLY BY THE HOT BUBBLING WATER AND COOL NIGHT AIR THEY GLUMLY DISCUSS DERAILED CAREERS THE MINIMUM WAGE AND DISCARDED DREAMS JUST OFF HIS TELEMARKETING SHIFT 24YEAROLD CHRIS DANISH SLIDES INTO THE TUB NEXT TO GIRLFRIEND BARBARA ANDERMAN 23 WHO BREATHLESSLY DISCLOSES THAT SHE HAS JUST QUIT HER NANNY JOB FROM HELL TOGETHER THEY WORK AS MANY AS SIX MUNDANE JOBS TO EARN A COMBINED 20000 A YEAR THAT'S STILL BETTER THAN SOME OF THEIR FRIENDS IN RETAIL AND RESTAURANT JOBS THESE ARE THE SAME PEOPLE WHO JUST A FEW YEARS EARLIER HUNG OUT IN COLLEGE PUBS AND MAPPED FASTTRACK CAREER PATHS TALK HERE NOW OFTEN TURNS INSTEAD TO WHAT SOMETIMES SEEMS THE MORE ATTAINABLE ROUTE TO PROSPERITY WINNING THE LOTTERY FOR GENERATION X THIS TWENTYSOMETHING CROWD FACING A BLEAK JOB MARKET AND WHAT THEY BELIEVE IS LITTLE HOPE OF MATCHING THEIR PARENTS' STANDARD OF LIVING YOUTH IS A DRAG THEY SUFFER FROM ECONOMIC WHIPLASH THEY CAME OF AGE IN THE EBULLIENT PROSPEROUS 1980S YET WERE DEPOSITED PRICEY COLLEGE DEGREES IN HAND INTO THE RECESSIONSQUEEZED JOB MARKET OF THE 1990S THEIR DILEMMA HAS BECOME INCREASINGLY CLEAR NEARLY ONE OF THREE COLLEGE GRADUATES BETWEEN 1990 AND 2005 IS EXPECTED TO TAKE JOBS THAT DON'T REQUIRE A SHEEPSKIN LIKE FLIPPING BURGERS HAWKING JEANS OR FAXING MEMOS REPORTS THE BUREAU OF LABOR STATISTICS THAT IS UP FROM THE 19 OF COLLEGE GRADS IN 1980 WHO EITHER HELD MENIAL JOBS OR WERE UNEMPLOYED LESS EXAMINED HOWEVER IS THE TOLL ON MANY OF THESE ONCE UPPERMIDDLECLASS YOUNG ADULTS AS THEY SUCCUMB TO DISILLUSIONMENT I FEEL LIKE A FAILURE SAYS MS ANDERMAN WHO WROTE HER SENIOR THESIS ABOUT LANDING EXOTIC JOBS AND GLOBETROTTING BUT NOW CAN BARELY PAY HER 405 MONTHLY RENT CERTAINLY DREAMS AREN'T ON HOLD FOR EVERYONE IN MS ANDERMAN'S GENERATION DESPITE THE RECESSION AND A PAINFULLY SLOW RECOVERY MOST YOUNG COLLEGE GRADUATES STILL FIND WHITECOLLAR JOBS AND SOME HAVE ALREADY BEGUN TO MAKE THEIR MARK ON SOCIETY AND BUSINESS BUT MANY ARE SIMPLY LOSING HOPE THEY WATCHED FRIENDS AND SIBLINGS JUST A FEW YEARS OLDER GRADUATE WITH MULTIPLE JOB OFFERS ACCUSTOMED TO A STEADILY SURGING ECONOMY MANY WERE ILLPREPARED TO DEAL WITH A DOWNTURN AND NOW HAVE TROUBLE BELIEVING THEIR LOT WILL EVER IMPROVE ONLY 20 THINK CHANCES OF ACHIEVING THE GOOD LIFE ARE VERY GOOD DOWN FROM 43 IN 1985 ACCORDING TO THE ROPER ORGANIZATION INC AND 56 SAY PLANNING FOR THE FUTURE WAS MORE STRESSFUL IN 1992 THAN JUST A YEAR BEFORE ACCORDING TO A YANKELOVICH PARTNERS STUDY SOME EVEN LIKEN THEIR SITUATION TO THE GREAT DEPRESSION THOUGH UNEMPLOYMENT TOPPED 25 THEN COMPARED WITH ONLY 7 IN JUNE A RATE FAR LOWER EVEN THAN THE 97 REACHED IN 1982 DURING THE LAST RECESSION PERMANENCE AND STABILITY DON'T SEEM ACHIEVABLE ANYMORE SAYS AUDREY FREEDMAN A NEW YORK LABOR ECONOMIST INDEED MS ANDERMAN AND MR DANISH DRAW BLANKS WHEN ASKED WHERE THEY THINK THEY WILL BE IN 10 YEARS OR SO SOMETIMES I WONDER WHY WE HAVEN'T ALL COMMITTED MASS SUICIDE BECAUSE WE DON'T HAVE A HELL OF A LOT TO LOOK FORWARD TO MS ANDERMAN SAYS MANY OLDER TWENTYSOMETHINGS WHO EASILY LANDED JOBS AFTER GRADUATION BUT QUIT TO ATTEND GRADUATE SCHOOL AREN'T ANY BETTER OFF JOE FISHER A 28YEAROLD FORMER RHODES SCHOLAR FINALIST WAS HIRED AT KIDDER PEABODY IN 1987 RIGHT OUT OF UNDERGRADUATE SCHOOL NOW A YEAR OUT OF NORTHWESTERN UNIVERSITY'S ACCLAIMED JL KELLOGG GRADUATE SCHOOL OF MANAGEMENT MR FISHER STILL HASN'T LANDED A JOB IN CORPORATE SPORTS MARKETING UNWILLING TO COMPROMISE MR FISHER CONTINUES HIS SEARCH WHILE DRIVING NAILS FOR A NEIGHBOR'S CONSTRUCTION FIRM AND LIVING WITH HIS PARENTS LET'S GO RAID THE OLD MAN'S FRIDGE HE OFTEN JOKES TO PUT HIS EMBARRASSED FRIENDS AT EASE HE IS BACK TO THE OLD HIGHSCHOOL ROUTINE PICKING UP HIS YOUNGER SISTER AND PAINTING THE HOUSE I FEEL LIKE MY LIFE IS ON HOLD HE SAYS THERE IS A TOLL TOO ON PARENTS YOU WANT TO SHAKE EMPLOYERS AND SAY HERE CAN'T YOU SEE ALL HER ABILITIES' SAYS MS ANDERMAN'S MOTHER EVELYN WHO GETS ANXIOUS 2 AM CALLS FROM HER DAUGHTER MR DANISH'S FATHER A PSYCHOLOGY PROFESSOR SAYS HE TRIES TO BE SUPPORTIVE OF HIS SON TELLING HIM MENIAL JOBS ARE FINE FOR A WHILE BUT DON'T ALLOW WHAT'S OUT THERE TO INFLUENCE YOUR DREAMS THINGS WOULDN'T BE SO HARD IF TWENTYSOMETHINGS HADN'T HAD IT SO GOOD MS ANDERMAN GREW UP IN THE AFFLUENT DETROIT SUBURB OF FARMINGTON HILLS MICH MR DANISH ATTENDED A SMALL PRIVATE HIGH SCHOOL IN RICHMOND VA WHERE THERE WAS A LOT OF OLD MONEY AT THE UNIVERSITY OF NEW MEXICO MS ANDERMAN EARNED A 38 GRADE POINT AVERAGE AND HELD THREE JOBS WORKING AT A LABORATORY SHE HANDLED 750000 IN EQUIPMENT ORDERS AND GOT HER NAME ON THE OFFICE DOOR I'M THINKING THIS IS A BEAUTIFUL RESUME SAYS THE PETITE WOMAN WITH BIG BROWN EYES AND HUSKY VOICE WHILE STILL IN COLLEGE MS ANDERMAN EASILY ACQUIRED TWO CREDIT CARDS AND USED THEM TO PAY FOR CLOTHES TRIPS TO MEXICO AND GIFTS FOR FRIENDS SHE RACKED UP 5000 IN DEBT FIGURING SHE WOULD PAY IT OFF WHEN SHE LANDED A JOB AFTER GRADUATION BOY WAS I AN IDIOT SHE SAYS NOW WITH DEGREES IN COMMUNICATION AND BUSINESS MS ANDERMAN FIRST TRIED TO FIND WORK AS A MANAGEMENT CONSULTANT THEN BROADENED HER SEARCH ONCE WHEN FOLLOWING UP HER APPLICATION FOR A SECRETARIAL JOB A RECORDED MESSAGE TOLD HER NOT TO BOTHER MORE THAN 400 HAD ALREADY APPLIED MR DANISH MEANWHILE GRADUATED TWO YEARS AGO FROM THE COLLEGE OF WILLIAM AND MARY WITH A DEGREE IN INTERNATIONAL RELATIONS DISDAINING THE INSURANCE AND SALES JOBS OFFERED BY THE SCHOOL PLACEMENT CENTER HE TRIED UNSUCCESSFULLY TO FIND A JOB IN WASHINGTON DC HIS ROOMMATES ALSO UNEMPLOYED PINNED A TRAVEL BROCHURE TO THEIR APARTMENT WALL OREGON THINGS LOOK DIFFERENT THERE SOON AFTER GRADUATION THEY PILED INTO A VAN AND TOOK OFF OREGON ISN'T EXACTLY A JOB MECCA THESE DAYS THE STUMBLING TIMBER AND COMPUTER INDUSTRIES ARE A BIG DRAG ON GROWTH WHILE TEKTRONIX PORTLAND'S THIRDLARGEST EMPLOYER HAS HALVED ITS WORK FORCE TO 7000 IN THE LAST DECADE 10 TIMES AS MANY YOUNG PEOPLE ARE ANSWERING THE COMPANY'S CLASSIFIED ADS EVEN THOSE WHO WANT TO SERVE CAPPUCCINO AT THE COFFEE PEOPLE HOUSE DOWNTOWN MUST FIRST FILL OUT A PRELIMINARY EMPLOYMENT APPLICATION MEANING THEY MUST APPLY TO EVEN APPLY FOR A JOB YET WITH ITS RELAXED PACE AND RELATIVELY LOW COST OF LIVING PORTLAND HAS BECOME A MAGNET FOR MANY GRADS WHO FIGURE THEY WON'T FIND JOBS ANYWAY SO HAVE SOME OTHER ATTRACTIVE LOCALES INCLUDING SAN DIEGO ATLANTA AND FORT COLLINS COLO THE TWENTYSOMETHINGS FIGURE IF YOU'RE GOING TO BE POOR WHY CAN'T YOU DO IT IN A NICE PLACE SAYS CAREER COUNSELOR MARILYN MOATS KENNEDY OF WILMETTE ILL MR DANISH SITTING AT A COFFEEHOUSE ONE RECENT EVENING TOSSES ON A TABLE A NEWSLETTER CALLED POST ADOLESCENT ANGST WRITTEN BY ANOTHER 24YEAROLD INSIDE A CARTOON CARICATURE OF A TEMP AGENCY DIRECTOR SNEERS YOU HAVE A COLLEGE DEGREE IN WHAT FINE ARTS HA HA HA A YEAR AGO MR DANISH HIMSELF BEGAN WORKING FOR A TEMP AGENCY TALENT TREE PERSONNEL SERVICES WHICH HAS FOUND HIM JOBS SORTING MAIL OR DISMANTLING CHAPEL PEWS FOR 5 TO 8 AN HOUR THAT COMBINED WITH COORDINATING VOLUNTEERS FOR THE CLINTON CAMPAIGN AND TELEMARKETING FOR A THEATER COMPANY EARNED MR DANISH ABOUT 7000 LAST YEAR JUST ABOVE THE POVERTY LEVEL FOR A SINGLE PERSON MR DANISH MET MS ANDERMAN LAST OCTOBER WHEN HE WAS VOLUNTEERING AT AN ART FAIR TWO MONTHS EARLIER ON THE WAY TO VISIT HER BROTHER IN TACOMA WASH MS ANDERMAN'S CAR HAD BROKEN DOWN IN PORTLAND THERE SHE ANSWERED A CLASSIFIED AD FOR AN EDITORIAL ASSISTANT AT A TWOPERSON PUBLISHING FIRM AND GOT THE JOB ONLY LATER DID HER BOSS EXPLAIN THAT HE ONLY NEEDED HER 10 TO 12 HOURS A WEEK SHAKING SHE WENT TO A NEARBY COFFEEHOUSE TO COLLECT HER THOUGHTS AND SPIED A FLIER ON THE WALL FOR A PARTTIME NANNY POSITION THE PAY 900 A MONTH SHE HAS BEEN SCRAPING UP ANOTHER 185 OR SO EACH MONTH BY WORKING AT THE PUBLISHING FIRM TUTORING AND TYPING BOOK MANUSCRIPTS FOR CLIENTS AT HOME ON A RECENT NIGHT SHE IS HURRIEDLY PUNCHING COMPUTER KEYS IN HER APARTMENT TRYING TO FINISH A 300PAGE MANUSCRIPT FOR A CLIENT MR DANISH LOUNGING ON THE FLOOR MATTRESS PERIODICALLY GETS UP TO RUB MS ANDERMAN'S NECK AS SHE STARES AT THE COMPUTER DURING EVENINGS LIKE THIS MS ANDERMAN SOMETIMES BREAKS DOWN IN TEARS IN SCHOOL SHE WAS A CAREFREE PERKY BALL OF ENERGY SHE SAYS WHO CRIED ONLY DURING SAPPY MOVIES NOW IT'S A RITUAL STRESSED OUT BY MOUNTING DEBTS LOW CASH AND MUNDANE JOBS SHE SAW A THERAPIST FOR A WHILE BUT THE 24AWEEK FEE WAS TOO COSTLY SHE LOST ENERGY AND HER HAIR FELL OUT IN CLUMPS PEERING IN THE MIRROR AFTER THE TEARS DRY MS ANDERMAN SEES AN AGED VERSION OF HERSELF I FEEL OLD AND DEFEATED LIKE THERE'S NOTHING LEFT I MISS THE OLD ME A GREAT DEAL MR DANISH QUIETLY SITS WITH HER AND ONLY LISTENS TO HER OUTBURSTS HE DOESN'T TALK ABOUT HIS OWN FRUSTRATIONS I WISH HE WOULD SAY SOMETHING MS ANDERMAN CONFIDES BUT TWO YEARS OF DISAPPOINTMENT HAVE WORN HIM DOWN MY RESERVES GET USED UP HE ADMITS TO HELP COPE THE YOUNG COUPLE HAS PICKED UP SOME THRIFTY HABITS 1 MOVIE THEATERS SECONDHAND STORES BICYCLES FOR TRANSPORTATION AND AT POWELL'S A COMBINATION BOOK STORE AND COFFEEHOUSE THEY HAVE DISCOVERED SOMETHING THEIR PARENTS FOUND IN LIBRARIES A PLACE TO SIT AND READ ENTIRE BOOKS WITHOUT BUYING THEM THE SCARIEST THING MR DANISH SAYS IS HEARING PEOPLE WHO ARE 28 AND 29 YEARS OLD TALK ABOUT THE SAME THINGS WE DO THE CITY IS FULL OF THEM EVEN THE PIONEER PLACE MALL COURTNEY GOODMAN 26 WORKS AS A STOCK CLERK IN THE J CREW STORE AFTER GETTING LAID OFF FROM A ST LOUIS ADVERTISING FIRM AMONG HIS COWORKERS IS AN MBA WHO COUNTS CUSTOMERS AS THEY WALK IN THE DOOR THIS ISN'T LOST ON THE HIGHSCHOOL STUDENTS WHO WORK IN THE MALL MEGAN ROBLEY A LIMITED EXPRESS CLERK SAYS HER NO 1 REQUIREMENT FOR COLLEGE IS A GOOD PLACEMENT CENTER BECAUSE NOT A DEGREE NOT EVEN GOOD GRADES CAN GET YOU WHAT YOU WANT THE COMPLAINTS OF COLLEGE GRADS SOUND LIKE A LOT OF WHINING TO THE NONCOLLEGIATE SET HEATHER ROBERTSON A 23YEAROLD HIGHSCHOOL GRADUATE WIFE AND MOTHER RECENTLY WORKED WITH TWO COLLEGE GRADUATES AT BOYDS COFFEE & DESSERT IN THE MALL'S FOOD COURT THEY WERE EMBARRASSED WHEN FRIENDS WALKED BY IT WAS LIKE OH MY GOD I'M SERVING ESPRESSO' SAYS MRS ROBERTSON BUT SHE HAS WORKED HER WAY UP THERE TO 750 AN HOUR FROM 6 AND GETS FULL BENEFITS OF COURSE MR DANISH AND MS ANDERMAN KNOW MANY PEOPLE WHO GOT JOBS SOON OUT OF SCHOOL MS ANDERMAN'S EXBOYFRIEND IS IN THE MARKETING DEPARTMENT AT INTEL MAKING MORE THAN 30000 A YEAR AND MR DANISH HAS A FRIEND IN PHARMACEUTICAL SALES WHO IS ALREADY REFURNISHING A HOUSE GOD I CAN'T EVEN IMAGINE IT SAYS MR DANISH SHAKING HIS HEAD BUT FOR THE MOST PART MR DANISH AND MS ANDERMAN SURROUND THEMSELVES WITH FRIENDS WHO ARE SIMILARLY UNDEREMPLOYED WHEN NOTHING ELSE IS CERTAIN THOSE BONDS ARE COMFORTING SAYS MR DANISH MY FRIENDS ARE MY ONLY WEALTH SEE RELATED LETTER LETTERS TO THE EDITOR GO AHEAD AND WHINE I'LL TAKE YOUR JOB WSJ AUG 30 1993 9307280011 YY93 MM08 9308300137 930726 IN MAJOR DISASTERS MS CRISP IS THERE SAVING THE ANIMALS SHE IS NOW DOING FLOOD RELIEF IN ST CHARLES MO A FRIEND TO CREATURES LEFT BEHIND BY CARL QUINTANILLA STAFF REPORTER OF THE WALL STREET JOURNAL ON THE DAY BEFORE HER WEDDING FOUR YEARS AGO TERRI CRISP WAS SAVING HOUSE CATS LEFT HOMELESS BY HURRICANE HUGO WHEN SHE SHOULD HAVE BEEN AT WORK LAST AUGUST SHE WAS TREATING HORSES INJURED BY HURRICANE ANDREW NOW SHE IS IN ST CHARLES MO RESCUING FUZZY A NEWFOUNDLAND FROM KNEEHIGH FLOOD WATERS OF THE MISSOURI RIVER I'M SOAKING WET SHE CRIES AS THE BIG DOG SHAKES THE WATER OFF GIVING MS CRISP AN UNWANTED BATH I'D REALLY LIKE TO BE IN JAMAICA RIGHT NOW BUT I'M NOT LEAVING SHE SAYS MS CRISP A DETERMINED 39YEAROLD CALIFORNIAN AND MOTHER OF THREE DAUGHTERS WHO ARE HOME WITH DAD JUST NOW HAS SPENT MUCH OF THE PAST DECADE DASHING OFF TO DISASTER SITES TO RESCUE ANIMALS SHE WENT TO YELLOWSTONE NATIONAL PARK DURING THE CONFLAGRATION OF 1988 SHE SPENT WEEKS IN SOUTH CAROLINA AFTER HUGO AND NEARLY A MONTH IN FLORIDA FOLLOWING ANDREW WHEN THE EXXON VALDEZ RAN AGROUND AND SPILLED 11 MILLION GALLONS OF OIL IN ALASKA'S PRINCE WILLIAM SOUND DEVASTATING WILDLIFE THERE SHE WAS ON THE SCENE FOR SIX MONTHS EXXON OFFICIALS GAVE HER A PAYING JOB THE DAY SHE SLAPPED A VOLUNTEER COORDINATOR STICKER ON HER BIB OVERALLS AND BEGAN DIRECTING RELIEF EFFORTS RESCUING ANIMALS SHE SAYS IS WHAT I LOVE IT'S WHY I WAS PUT ON THIS EARTH IF I HAD TO SIT AT HOME KNOWING THERE WAS A DISASTER WITH ANIMALS IN IT I THINK I'D GO NUTS WHEN THERE IS NO DISASTER TO RUSH OFF TO MS CRISP WHO ISN'T A VETERINARIAN BUT HAS HAD SOME INFORMAL MEDICAL TRAINING IS AN ADMINISTRATIVE ASSISTANT AT SANTA CLARA UNIVERSITY IN CALIFORNIA TAKING UNPAID LEAVES SHE IS ABLE TO GLOBETROT TO WHEREVER SHE FEELS NEEDED THANKS ALSO TO A PARTTIME JOB AS DISASTERSERVICES COORDINATOR FOR UNITED ANIMAL NATIONS A NONPROFIT GROUP IN SACRAMENTO THAT ASSISTS IN ANIMAL RESCUES THE ORGANIZATION PAYS HER A SALARY AND EXPENSES FOR HER MERCY MISSIONS SHE'S INCREDIBLE SAYS DEANA SOARES UNITED ANIMAL NATIONS' VICE PRESIDENT YOU'D THINK SHE WAS TOO EMOTIONALLY INVOLVED TO TAKE CHARGE OF THE SITUATION BUT SHE JUST TAKES OVER AND GETS THINGS DONE THE AMERICAN HUMANE ASSOCIATION AND THE HUMANE SOCIETY OF THE UNITED STATES BOTH PROVIDE FINANCIAL AID AND ANIMALRELIEF COORDINATORS BUT NEITHER ORGANIZATION DISPATCHES PEOPLE TO ACTUALLY DO THE RESCUE WORK OF ALL THE DISASTERS I'VE BEEN TO SAYS MS CRISP I'VE NEVER SEEN THE SAME FACE TWICE SINCE SHE ARRIVED IN ST CHARLES TWO WEEKS AGO MS CRISP HAS BEEN HELPING OUT THE LOCAL HUMANE SOCIETY PET ADOPTION CENTER WHICH HAD SENT HER AN SOS SHE HAS RECRUITED AND TRAINED 300 LOCAL VOLUNTEERS AND HAS EQUIPPED THEM WITH LIFE JACKETS AND WHISTLES FIRSTAID KITS AND MOSQUITO SPRAY WHEN WORKERS BRING A STRANDED ANIMAL BACK TO THE SHELTER NOW THEY SNAP A POLAROID PHOTO FOR AN ALBUM THAT OWNERS OF LOST PETS CAN PERUSE THE SHELTER PROCESSED 350 ANIMALS LAST WEEK MORE THAN 50 OF WHICH HAVE BEEN REUNITED WITH THEIR OWNERS ST CHARLES NURSING STUDENT SHERRY WIES YELLED THERE'S MY BABY WHEN SHE SAW THE PHOTO OF HER LOST POMERANIAN DOG MINNIE MOUSE LAST TUESDAY ALMOST ALL OF THE OTHERS ARE IN FOSTER HOMES ANIMAL RESCUE IN THIS DELUGE OF COURSE ISN'T UNIFORMLY SO ORGANIZED AND WHILE FOR MS CRISP AND OTHERS IT IS A LABOR OF LOVE THE WORK IS FAR FROM EASY AT THE MUSCATINE IOWA HUMANE SOCIETY CARP NOW SWIM IN THE FLOODED FRONT YARD AND MANAGER CHRIS MCGINNIS HAS HAD TO MOVE THE 23 DOGS IN THE SHELTER TO HER OWN HOUSE IN LEE COUNTY IOWA FARMER BILL PEIPER WATCHED EIGHT OF HIS 400POUND HOGS SWIM OUT OF THEIR PENS AS SIX FEET OF WATER RUSHED ONTO HIS FARM HE AND TWO HELPERS HEFTED THE MOANING EXHAUSTED ANIMALS INTO A MOTORBOAT AND ONE BY ONE TOOK THEM TO HIGHER GROUND RICHARD AND JAMES JONES'S 50 CATTLE STOOD IN KNEEDEEP WATER FOR DAYS UNTIL THE FARMERS COULD ROUND UP ENOUGH ELDON IOWA NEIGHBORS TO EVACUATE THEM WITH A PONTOON BOAT IN THE WATER SAYS VETERINARIAN STEVE MENKE THE HERD DEVELOPED LESIONS ON THEIR LEGS AND CALVES COULDN'T SUCKLE BECAUSE THEIR MOTHERS' UDDERS WERE UNDERWATER THEY WERE JUST STUNNED SAYS DR MENKE THEY'D STAND WITH ONE LEG UP OUT OF THE WATER THEN SWITCH MS CRISP HAS SEEN WORSE AFTER HURRICANE ANDREW SHE TREATED A HORSE THAT HAD BEEN IMPALED BY A FLYING TWOBYFOUR SHE SAVED A GERMAN SHEPHERD THAT COLLAPSED FROM EXHAUSTION IN THE ROAD HAVING WALKED SO FAR THAT THE PADS ON HIS PAWS HAD WORN OFF SHE IS STILL HAUNTED BY THE MEMORIES THERE ARE STILL DAYS WHEN I CLOSE MY EYES AND SEE THOSE ANIMALS SHE SAYS OTHER TIMES THE DAMAGE TO THE ANIMAL IS MORE PSYCHOLOGICAL MS MCGINNIS OF THE MUSCATINE IOWA SHELTER TELLS OF A FOURPOUND YORKSHIRE TERRIER NAMED BO PEEP WHO TREMBLED FOR DAYS AFTER BEING EVACUATED FROM THE FLOODED SHELTER SANDY A YELLOW CAT IS DAZED FROM BEING SPLASHED ON A ROUGH TRIP IN THE BACK OF A PICKUP TRUCK THEY'RE TERRIFIED SHE SAYS ALL YOU CAN DO IS PET THEM AND TRY TO CALM THEM DOWN BILL STAVERS AN ANIMALBEHAVIOR SPECIALIST IN LOS ANGELES SAYS THAT WHILE SOME TRAUMATIZED ANIMALS WILL EVENTUALLY WARM TO PEOPLE AGAIN OTHERS MAY ROLL UP INTO A BALL AND DO NOTHING BUT STARVE PERHAPS THE UGLIEST ASPECT OF A DISASTER COMES WHEN AN ANIMAL IS PURPOSELY LEFT BEHIND MS MCGINNIS ARRIVED AT HER SHELTER LAST WEEK TO FIND AN ABANDONED VERY PREGNANT BEAGLE TIED TO A CHAINLINK FENCE SURROUNDED BY WATER IN THE FRONT YARD WE COULDN'T BELIEVE IT SHE SAYS SHE COULD HAVE BEEN THERE ALL NIGHT MR PEIPER SOME OF WHOSE HOGS WERE CAUGHT IN THE FLOODING TRIED TO DO THE RIGHT THING BY SENDING 1300 OF HIS HERD OUT OF TOWN TO A FOSTER FARM BEFORE THE MISSISSIPPI CRESTED THE HERETOFORE INDOOR HOGS WHICH HAD BEEN HOUSED IN PENS HAVE SUFFERED SUNBURN BUT ON THE WHOLE MR PEIPER WAS LUCKY TO HAVE FOUND EVEN AN OUTDOOR PLACE FOR THEM A STATE WILDLIFE OFFICIAL SAYS IT'S NOT LIKE ASKING SOMEONE TO WATCH YOUR DOG FOR A WEEK GIVEN THE DESTRUCTION THE SADNESS THE HARD AND SOMETIMES FUTILE WORK WHAT MAKES MS CRISP RUN OFF TO EVERY BIG DISASTER IN WHICH ANIMALS ARE IN JEOPARDY INDEED WHY HELP ANIMALS RATHER THAN PEOPLE FOR HER THE ANSWER IS EASY THERE ARE ALWAYS PLENTY OF PEOPLE HELPING PEOPLE MS CRISP EXPLAINS NOT ENOUGH OF US DO IT FOR ANIMALS THERE IS NO BETTER FEELING THAN BEING ABLE TO SAVE AN ANIMAL'S LIFE SHE SAYS AND THE ADDED JOY IS IN GIVING IT BACK TO ITS OWNER ESPECIALLY WHEN THEY'VE LOST EVERYTHING ELSE SEE RELATED LETTER LETTERS TO THE EDITOR WHEN DISASTER STRIKES WE GO FOR THE ANIMALS WSJ AUG 30 1993 9307260063 YY93 MM08 9308270203 930827 WORLD MARKETS LONDON MARKET HOLDS STEADY DESPITE DECISION BY GERMANY ON RATES TOKYO REBOUND CONTINUES A WALL STREET JOURNAL NEWS ROUNDUP EUROPEAN STOCKS FOR THE MOST PART REACTED CALMLY TO GERMANY'S DECISION NOT TO CUT INTEREST RATES INDEED LONDON STOCKS ENDED A ROLLERCOASTER SESSION FLAT WITH A STEEP RALLY LATE IN THE AFTERNOON DEFYING THE BUNDESBANK'S STUBBORNNESS ON RATES PRICES IN TOKYO CONTINUED THEIR REBOUND IN A SLEEPY MARKET PUT OFF BY THE ABSENCE OF AN AGGRESSIVE FISCAL STIMULUS PROGRAM FROM JAPAN'S NEW GOVERNMENT WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11197 UP 069 REFLECTING INCREASES IN AMERICAN ASIA/PACIFIC AND EUROPEAN MARKETS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 13494 UP 247 OR 19 WITH DUNLOP OF MALAYSIA POSTING AN 11 GAIN IN ITS LOCAL CURRENCY SOFTWARE STOCKS TRAILED AT 10456 DOWN 311 OR 29 WITH NOVELL OF THE US SLIDING 10 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100 INDEX ENDED UNCHANGED AT 30792 THE FT 30 INDEX SLIPPED 08 POINT TO 23935 VOLUME WAS 6713 MILLION SHARES COMPARED WITH 7318 MILLION THE PREVIOUS DAY STOCKS ROSE ON THE OPENING FELL STEEPLY THEN RALLIED LATE GIVING LITTLE IMPORTANCE TO THE GERMAN BUNDESBANK'S DECISION THE INDEX'S RESILIENCE SUGGESTS A VIEW IN THE MARKET THAT BRITAIN'S MONETARY POLICY IS FINALLY INDEPENDENT OF GERMANY AND THAT LOWER BRITISH INTEREST RATES ARE IN THE OFFING BRITAIN'S BASE RATES ARE NOW AT 6 INTEREST RATES ASIDE CORPORATE EARNINGS WILL LARGELY SET THE TONE FOR THE FTSE INDEX IN THE NEAR TERM THE MARKET IS ABOUT TO ENTER A MAJOR MONTHLONG RESULTS SEASON IN FRANKFURT STOCKS WEAKENED AS INVESTORS AWAITED THE WORD ON INTEREST RATES THE BUNDESBANK'S ANNOUNCEMENT WHICH SURPRISED MANY MARKET WATCHERS CAME ONLY AFTER THE CLOSE OF FLOOR TRADING THE DAX 30STOCK INDEX BLUECHIPS FELL 1663 POINTS TO 190115 WIPING OUT MOST OF WEDNESDAY'S 2009POINT GAIN THE CHEMICAL SECTOR WEIGHED DOWN THE MARKET AFTER TWO BIG CHEMICAL GROUPS REPORTED SHARPLY LOWER FIRSTHALF EARNINGS IN PARIS STOCKS CLIMBED TO A RECORD IN ACTIVE TRADING AS INVESTORS HELD OUT HOPE THAT A BUNDESBANK RATE CUT THOUGH DEFERRED FOR NOW WILL COME EVENTUALLY IN MILAN PRICES ROSE AS INVESTORS SHRUGGED OFF THE BUNDESBANK DECISION SHARES HAD RALLIED STRONGLY EARLY ON HOPES THAT A GERMAN EASING WOULD TRIGGER A SIMILAR MOVE BY THE BANK OF ITALY AFTER THE GERMAN BANK LEFT RATES UNCHANGED THE RALLY COOLED BRIEFLY BUT HOPES THAT THE BANK OF ITALY WILL LOWER RATES INDEPENDENTLY PERSISTED IN MADRID PRICES EDGED HIGHER IN TOPSYTURVY TRADING A SURPRISE RALLY BEGAN AFTER THE GERMAN ANNOUNCEMENT ONE EXCEPTION TO THE BLASE REACTION OVER GERMANY WAS IN AMSTERDAM WHERE EQUITIES SANK 12 AS THE BUNDESBANK'S RESTRAINT ON RATES HEIGHTENED SELLING PRESSURE IN STOCKHOLM STOCKS FELL 11 IN HEAVY TRADING EXTENDING THEIR LOSING STREAK TO SIX CONSECUTIVE SESSIONS A NEGATIVE REPORT ON SWEDEN'S FINANCES FROM THE INTERNATIONAL MONETARY FUND DAMPED INVESTOR ENTHUSIASM THE SECRET REPORT LEAKED TO A SWEDISH BUSINESS NEWSPAPER CRITICIZED HIGH BUDGET DEFICITS AND CALLED FOR EVEN BIGGER SPENDING CUTS THAN THE GOVERNMENT HAS PROPOSED IN ZURICH PRICES TUMBLED 1 IN MODERATE TRADING AS INVESTORS WHO PUSHED THE MARKET HIGHER WEDNESDAY TOOK PROFITS THE BUNDESBANK DECISION CONTRIBUTED ONLY SLIGHTLY TO THE SELLING PRESSURE IN TOKYO THE NIKKEI 225STOCK INDEX WHICH GAINED 8961 POINTS WEDNESDAY ROSE 7031 TO 2059176 ON FRIDAY THE NIKKEI ROSE 7961 POINTS TO CLOSE THE MORNING SESSION AT 2067137 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 190 MILLION SHARES DOWN FROM 2135 MILLION SHARES WEDNESDAY GAINERS OUTNUMBERED LOSERS 597341 THE TOKYO STOCK PRICE INDEX OR TOPIX OF FIRSTSECTION ISSUES WHICH ADDED 696 POINTS WEDNESDAY ROSE 509 TO 165436 THIN VOLUMES AND CLIMBING BOND PRICES DISCOURAGED INVESTORS FROM JUMPING INTO STOCKS AND BUYERS CAME IN MOSTLY AS THE NIKKEI FELL BELOW 20500 LATE IN THE SESSION THE HIGHER CLOSE DEMONSTRATED THE RESILIENCE OF THE MARKET BUT THE SOMNOLENCE IS LIKELY TO PERSIST UNLESS PRIME MINISTER MORIHIRO HOSOKAWA'S GOVERNMENT COMES UP WITH MORE CONCRETE MEASURES TO HELP STIMULATE THE ECONOMY IN TESTIMONY BEFORE THE PLENARY SESSION OF THE HOUSE OF COUNCILLORS MR HOSOKAWA REITERATED HIS PLEDGES TO STIMULATE DOMESTIC DEMAND EASE REGULATION RESTRICTIONS AND TAKE OTHER STEPS TO SHIFT PRIORITY TO CONSUMERS BUT TRADERS HAVEN'T SEEN ENOUGH EVIDENCE OF CLEAR FISCAL STIMULUS MEASURES ASIAN AND PACIFIC MARKETS WERE MIXED BUT SOME LARGER EXCHANGES HAD STRONG GAINS IN SYDNEY PRICES RALLIED TO A SIXYEAR HIGH OFFSHORE BUYERS RETURNED ON NEWS THAT MINOR NONALIGNED POLITICAL PARTIES WILL SUPPORT THE AUSTRALIAN GOVERNMENT'S BUDGET IN THE SENATE SINGAPORE STOCKS SURGED 17 TO THEIR SECOND STRAIGHT RECORD CLOSE CATAPULTED BY GAINS IN INDEXLINKED ISSUES THE BENCHMARK 30STOCK STRAITS TIMES INDUSTRIALS INDEX SETTLED AT ITS INTRADAY HIGH OF 201019 WELL ABOVE THE IMPORTANT 2000 LEVEL WHICH ONLY A FEW WEEKS AGO WAS SEEN AS A YEAREND TARGET THE BULLISHNESS WAS UNDERPINNED BY STRONG FIRSTHALF EARNINGS FROM A NUMBER OF MAJOR COMPANIES HEIGHTENING HOPES FOR STRONG FULLYEAR EARNINGS FOR THESE AND OTHER COMPANIES IN HONG KONG PRICES REBOUNDED 25 AS FUNDS SHIFTED INTO STOCKS FROM FUTURES THE AUGUST HANG SENG INDEX FUTURES CONTRACT EXPIRES TODAY AND PARTICIPANTS REPORTED SIGNIFICANT BUYING OF STOCKS FROM PARTICIPANTS CASHING OUT OF THE FUTURES THURSDAY'S RISE HELPED THE MARKET RECOVER MUCH OF ITS LOSSES IN THE PREVIOUS FOUR SESSIONS TAIPEI STOCKS REBOUNDED SLIGHTLY IN THIN TRADING AFTER SEVEN STRAIGHT SESSIONS OF INDEX DROPS PRICES WERE LIFTED BY THE BULLISH ATTITUDE OF TAIWAN'S CENTRAL BANK WHICH RECENTLY REPEATED ITS DECISION TO MAINTAIN A RELAXED MONETARY POLICY UNTIL THE END OF THIS YEAR IN SEOUL SHARES TUMBLED 13 THE FOURTH STRAIGHT PLUNGE DEPRESSING THE MARKET WAS INCREASING CONCERN THAT SOUTH KOREA'S ECONOMY IS SHOWING NO SIGN OF RECOVERY IN MANILA EQUITIES EDGED LOWER IN MODERATE TRADING ON THE THIRD DAY OF A CORRECTION IN WELLINGTON PRICES CLIMBED IN BUSY TRADING AS FALLING YIELDS IN THE DEBT MARKET DREW MORE MONEY INTO STOCKS AMONG CORPORATE DEVELOPMENTS IN FRANKFURT SHARES OF TWO BIG CHEMICAL CONCERNS FELL SHARPLY BASF LOST 250 MARKS TO 253 MARKS 15012 ITS FIRSTHALF PRETAX PROFIT PLUNGED 50 TO 483 MILLION MARKS 2866 MILLION FROM 972 MILLION MARKS A YEAR EARLIER BAYER DROPPED 380 MARKS OR 13 TO 29210 MARKS ITS FIRSTHALF PROFIT SANK 20 TO 141 BILLION MARKS FROM 175 BILLION MARKS CONTINENTAL LOST 150 MARKS TO 233 MARKS THE TIRE MAKER'S FIRSTHALF PRETAX PROFIT PLUMMETED 74 TO 313 MILLION MARKS FROM 1187 MILLION MARKS THE RESULT WAS IN LINE WITH EXPECTATIONS 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 9308270202 930827 CREDIT MARKETS TREASURY YIELDS FALL TO NEW LOWS CREATING RUSH BY MANAGERS TO JUMP INTO RALLY THAT WON'T QUIT BY CRAIG TORRES AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK TREASURY BOND PRICES SOARED YESTERDAY AND YIELDS PLUNGED TO HISTORICAL LOWS AS MONEY MANAGERS SCRAMBLED TO GET REINVESTED INTO A MARKET THAT PUNISHED SKEPTICS FOR THE THIRD CONSECUTIVE SESSION THE BENCHMARK 30YEAR TREASURY BOND ROSE 1 POINT OR 10 FOR EACH 1000 FACE AMOUNT THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE FELL TO 608 THE LOWEST SINCE THE TREASURY BEGAN REGULAR 30YEAR AUCTIONS IN 1977 TENYEAR TREASURY NOTE PRICES ROSE 1/2 POINT OR 5 FOR EACH 1000 BOND YIELDS TUMBLED TO 541 THE LOWEST SINCE MARCH 1971 MARGARET PATEL PORTFOLIO MANAGER FOR ADVEST'S ADVANTAGE GOVERNMENT SECURITIES FUND SAID WHAT THE RALLY HAS BEEN SHOWING YOU IS THE FINAL CAPITULATION OF PEOPLE WHOSE PORTFOLIOS ARE TOO SHORT IN MATURITY MEAD BRIGGS HEAD OF RISK TRADING AT DEUTSCHE BANK GOVERNMENT SECURITIES INC ADDED IT'S NOT THAT PORTFOLIO MANAGERS WANT TO BUY IT'S NOT THAT THEY THOUGHT RATES WERE GREAT THEY JUST HAD TO BUY OR SLIP IN THEIR PERFORMANCE THE MARKET OPENED STRONGLY AND KEPT RUNNING TRADERS SAID EACH MOVE UP IN PRICE BROUGHT MORE INVESTORS IN ESPECIALLY A NUMBER OF MANAGERS OF FUNDS INVESTING IN MORTGAGEBACKED SECURITIES INTEREST ON MORTGAGE BONDS IS LINKED TO RATES ON HOME LOANS AS RATES PLUNGE HOMEOWNERS ARE LIKELY TO REFINANCE MORTGAGES THAT CARRY RELATIVELY HIGH RATES IN EFFECT THIS PREPAYMENT OF THE UNDERLYING MORTGAGES SHORTENS THE MATURITY OF MORTGAGE BONDS THAT FORCES THESE BOND MANAGERS TO REACH OUT AND GRAB LONGTERM TREASURY BONDS TO RESTORE THE AVERAGE MATURITIES OF THEIR PORTFOLIOS OR SIMPLY TO REINVEST THE CASH THEY GET FROM PREPAYMENT INTEREST RATES HAVE GONE TO A LEVEL WHERE YOU CAN REFINANCE AGAIN SAYS DONALD ALLISON MANAGING DIRECTOR FOR STRATEGIC TRADING AT CHEMICAL BANK MORTGAGE BONDS THAT LOOKED IMMUNE SUCH AS 75 COUPONS ARE STARTING TO LOOK VULNERABLE TO PREPAYMENT HE ADDED A LOT OF MORTGAGE BONDHOLDERS ARE BEING FORCED INTO THE TREASURY MARKET CHRISTOPHER FLANAGAN COHEAD OF MORTGAGE RESEARCH AT MERRILL LYNCH & CO EVEN THINKS 7 MORTGAGEBACKED SECURITIES ARE VULNERABLE TO PREPAYMENTS RESIDENTIAL FIXEDRATED MORTGAGES FELL THIS WEEK TO A 25YEAR LOW DROPPING BELOW 7 THE AVERAGE RATE ON A 30YEAR CONVENTIONAL MORTGAGE DROPPED TO 699 FROM 709 LAST FRIDAY ACCORDING TO A PRELIMINARY SURVEY YESTERDAY OF LENDERS BY HSH ASSOCIATES INC A BUTLER NJ MORTGAGE PUBLISHING FIRM ONEYEAR ADJUSTABLERATE MORTGAGES FELL SLIGHTLY TO 429 FROM 430 GIVEN THE TERMS THAT MORTGAGE BANKERS ARE NOW OFFERING MR FLANAGAN SAYS IT'S PROFITABLE FOR A HOMEOWNER WITH A 30YEAR 75 MORTGAGE TO REFINANCE GARY MADICH WHO OVERSEES SOME 13 BILLION IN MORTGAGE BONDS AT FEDERATED INVESTORS IN PITTSBURGH SAYS HE MIGHT BUY SOME 10YEAR TREASURYS BECAUSE THEY LOOK CHEAP COMPARED TO SOME MORTGAGE ISSUES UP SHARPLY IN PRICE BUT HE'S ALSO WORRIED ABOUT PREPAYMENTS AND HE'S THINKING ABOUT MAKING SOME DOWNINCOUPON TRADES IN THESE TRADES INVESTORS MOVE OUT OF THEIR HIGHERCOUPON ISSUES TO BUY LOWER COUPONS THAT ARE LESS LIKELY TO PREPAY PREPAYMENT LEVELS NOW ARE HISTORICALLY HIGH MR MADICH SAYS THE QUESTION IS WHETHER THEY ARE GOING TO GO EVEN HIGHER THIS WINTER OR NOT SOME LOWERCOUPON MORTGAGEBONDS THAT APPEAR SAFE FROM PREPAYMENTS SOARED YESTERDAY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 ISSUES OUTPERFORMED THE 10YEAR TREASURY YESTERDAY SAID DIANE WHEELER MANAGER OF THE 7 BILLION PUTNAM US GOVERNMENT TRUST FUND SHE ADDED YOU ARE SEEING A LOT OF CASH COMING INTO THE MARKET PEOPLE WERE TALKING ABOUT 6 LONGTERM BOND YIELDS BY YEAR END AT THIS RATE WE COULD SEE IT BY LABOR DAY OR SOONER BOND INVESTORS ARE USING EVERY FRAGMENT OF GOOD NEWS TO LOAD UP ON MORE BONDS YESTERDAY A TUMBLE IN GOLD PRICES THE LACK OF A RATE REDUCTION FROM GERMANY'S CENTRAL BANK AND RUMORS OF BIG ZEROCOUPON BOND PURCHASES BY BRAZIL ALL CONSPIRED TO LEND A BULLISH BIAS TO THE BOND MARKET ZEROCOUPON BONDS PAY NO INTEREST BUT ARE SOLD AT A DISCOUNT TO FACE VALUE AND REPAID AT PAR NEXT WEEK HOWEVER BOND BUYERS WILL HAVE TO ANALYZE KEY ECONOMIC REPORTS ON EMPLOYMENT TRADE AND SALES OF HOMES AND MANUFACTURED GOODS AND THEN JUDGE IF THE BULLISH CASE FOR BONDS IS STILL INTACT EVERYBODY IS AFRAID THE MARKET COULD GET HIT SAYS CHARLES SCHAEFER VICE PRESIDENT AT CITICORP SECURITIES MARKETS THE MARKET HAS BEEN VULNERABLE ALL ALONG HE SAYS BUT AS LONG BONDS KEEP RALLYING INVESTORS WILL BE HARD PRESSED TO BUY OR THEIR PERFORMANCES WILL SLIDE AMID THE ACTIVITY IN THE MORTGAGE MARKET VOLATILE STRIP SECURITIES IN WHICH TRADERS SEPARATE INTERESTPAYING PORTIONS OF BONDS FROM THE PRINCIPAL PORTIONS MOVED DRAMATICALLY IN PRICE YESTERDAY INTERESTONLY BONDS BACKED BY 7 MORTGAGES LOST TWO POINTS OR 20 FOR EACH 1000 BOND ACCORDING TO ONE TRADER BY CONTRAST PRINCIPALONLY SECURITIES ROSE SHARPLY WITH 7 ISSUES GAINING SIX POINTS OR 60 FOR EACH 1000 BOND MORTGAGE BANKERS HAVE BEEN RELUCTANT TO SELL NEW SUPPLY INTO THE MARKET AS RATES CONTINUE TO FALL DEALERS ESTIMATE THAT BANKERS HAVE SHED ONLY A FRACTION OF THEIR HOLDINGS FINDING IT MORE PROFITABLE TO EARN THE INTEREST ON THE LOANS ONLY TWO NEW ISSUES WERE PRICED YESTERDAY A 500 MILLION OFFERING OF FEDERAL NATIONAL MORTAGE ASSOCIATION SECURITIES BACKED BY 15YEAR 65 MORTGAGE SECURITIES AND A 300 MILLION OFFERING OF FEDERAL HOME LOAN MORTGAGE CORP SECURITIES BACKED BY 30YEAR 7 SECURITIES ALL THE ACTION IN THE STRUCTUREDFINANCE MARKETS YESTERDAY CENTERED AROUND THE ASSETBACKED SECTOR WHERE CITICORP'S CITIBANK UNIT BROUGHT ITS FIRST 10YEAR FIXEDRATE SECURITY A 798 MILLION TWOPART OFFERING AT 10 YEARS THE NEW YORK MONEYCENTER BANK'S ISSUE IS LONGER THAN MOST SECURITIES OUTSTANDING IN THE 79 BILLION CREDIT CARD MARKET MOST MATURE IN THREE TO FIVE YEARS THE BANK WAS ABLE TO LOCK IN AN EXTREMELY LOW COUPON OF 595 FOR THE LARGEST PART OF THE TRANSACTION 750 MILLION OF TRIPLEARATED SENIORCLASS SECURITIES A NUMBER OF COMPANIES TOOK ADVANTAGE OF YESTERDAY'S BOND RALLY AS 137 BILLION OF CORPORATE DEBT AND 600 MILLION OF AGENCY PAPER CAME TO MARKET ISSUERS INCLUDED AMOCO CANADA PETROLEUM CO AND CHAMPION INTERNATIONAL CORP A PAPER AND LUMBER CONCERN TRADING IN THE SECONDARY INVESTMENTGRADE MARKET WAS RELATIVELY LIGHT IN THE HIGHYIELD MARKET THE FOCUS REMAINED ON NEW ISSUES AND PRICES WERE UNCHANGED TRADERS SAID AS A RESULT SPREADS ABOVE TREASURYS WIDENED THE OLD 30YEAR TREASURY THE 7125 ISSUE OF FEBRUARY 2023 WAS USED AS THE BENCHMARK FOR PRICING BOTH THE AMOCO CANADA AND THE CHAMPION INTERNATIONAL OFFERINGS TODAY AMOCO CANADA A UNIT OF AMOCO CORP PRICED 300 MILLION OF 30YEAR DEBENTURES AT 98733 TO YIELD 685 THE DEBENTURES NOT CALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 060 PERCENTAGE POINT ABOVE THE OLD TREASURY ISSUE RATED TRIPLEA BY BOTH MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO SIMILARLY CHAMPION PRICED 100 MILLION OF 30YEAR DEBENTURES AT 99276 TO YIELD 7687 THE DEBENTURES NOT CALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 14 PERCENTAGE POINTS ABOVE THE OLD TREASURY RATED BAA1 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WAS ALSO SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS AMONG THE OFFERINGS IN THE JUNK MARKET HILLHAVEN CORP PRICED 175 MILLION OF EIGHTYEAR SENIOR SUBORDINATED NOTES AT 99625 TO YIELD 10195 THE NOTES PRICED 477 PERCENTAGE POINTS ABOVE TREASURYS WERE RATED BY SINGLEB2 BY MOODY'S AND SINGLEBMINUS BY S&P THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH INVESTORS LIKED THE DEAL BECAUSE THE COMPANY PROVIDES HEALTH CARE FOR THE ELDERLY A SEGMENT THAT IS GROWING ONE SELLING SYNDICATE OFFICIAL SAID THE EUROPEAN BOND MARKETS WERE FOCUSED YESTERDAY ON A POLICY MEETING OF GERMANY'S CENTRAL BANK THE BUNDESBANK WHICH DECIDED TO LEAVE ITS KEY INTEREST RATES UNCHANGED EUROPEAN GOVERNMENT BONDS ENDED MAINLY AND NARROWLY LOWER GERMAN GOVERNMENT BONDS CALLED BUNDS ENDED SLIGHTLY LOWER IN THE CASH MARKET THE 65 BUNDS DUE 2003 ENDED 008 POINT LOWER AT 10149 TO YIELD 629 UP 001 PERCENTAGE POINT FROM WEDNESDAY AMONG MIDDLE MATURITIES THE 6125 TREUHAND NOTES DUE 1997 ENDED 013 POINT LOWER AT 10095 TO YIELD 587 UP 002 PERCENTAGE POINT FRENCH TREASURYS OR OBLIGATIONS ASSIMILABLES DU TRESOR ENDED NARROWLY MIXED THE 675 FRENCH TREASURY OF 2003 FINISHED AT 10395 UP 008 FROM WEDNESDAY IN PARIS TO YIELD 622 COMPARED WITH 623 LATE WEDNESDAY BRITISH GOVERNMENT BONDS CALLED GILTS ENDED SLIGHTLY WEAKER THE BENCHMARK 9 TREASURY LOAN DUE 2008 ENDED AT 114 26/32 DOWN 1/32 FROM LATE WEDNESDAY TO YIELD 735 PRICES OF MUNICIPAL BONDS ENDED WITH GAINS OF 1/8 TO 5/8 POINT HAVING RISEN ALONG WITH TREASURY BONDS AMONG SECONDARY ISSUES THE MASSACHUSETTS BAY TRANSPORTATION AUTHORITY'S 550 REFUNDING BONDS OF 2022 ENDED 3/8 HIGHER AT 99 1/2 TO YIELD 552 THE REGIONAL AIRPORT AUTHORITY OF LOUISVILLE AND JEFFERSON COUNTY KY'S 550 REVENUE BONDS OF 2023 ENDED 5/8 HIGHER 98 TO YIELD 562 WHILE THERE WASN'T MUCH ACTION IN THE PRIMARY MARKET YESTERDAY THE NEW YORK STATE POWER AUTHORITY'S 11 BILLION OF SERIES CC GENERALPURPOSE REFUNDING AND NEWMONEY BONDS WERE FREED TO TRADE THE 525 BONDS OF 2018 WERE TRADING LATE YESTERDAY AT 98 3/4 TO YIELD 532 WHEN THE ISSUE WAS PRICED TUESDAY BY A PAINEWEBBER INC GROUP THE BONDS WERE GIVEN A 540 YIELD 9308270201 930827 WHO'S NEWS SANTA MONICA BANK SANTA MONICA BANK SANTA MONICA CALIF AUBREY L AUSTIN 46YEAROLD PRESIDENT ASSUMES THE ADDITIONAL TITLE OF CHIEF EXECUTIVE OFFICER EFFECTIVE OCT 1 HE SUCCEEDS JOE L WALLING 76 WHO IS RETIRING BUT CONTINUES AS CHAIRMAN 9308270200 930827 WHO'S NEWS TECUMSEH PRODUCTS CO TECUMSEH PRODUCTS CO TECUMSEH MICH JON E BARFIELD PRESIDENT OF STAFFING TRENDS INC WAS ELECTED A DIRECTOR OF THIS MANUFACTURER OF SMALL ENGINES AND COMPRESSORS INCREASING THE BOARD SIZE TO 12 9308270199 930827 WHO'S NEWS OWENS & MINOR INC OWENS & MINOR INC RICHMOND VA HUGH F GOULDTHORPE JR 54 YEARS OLD WAS NAMED VICE PRESIDENT QUALITY AND COMMUNICATIONS FOR THIS WHOLESALE DISTRIBUTOR OF MEDICAL AND SURGICAL SUPPLIES MR GOULDTHORPE WHO FILLS A NEW POSITION HAD BEEN VICE PRESIDENT OF COMMUNICATIONS 9308270198 930827 MCDONALD'S AT CUSHY SKYDOME ALSO FINDS A SPOT IN THE DOGHOUSE BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO IN A FIGHT THAT GIVES NEW MEANING TO THE PHRASE DOG DAYS OF SUMMER A HANDFUL OF SMALLTIME HOT DOG VENDORS TOOK ON FASTFOOD BEHEMOTH MCDONALD'S CORP AND WON THE RESTAURANT CHAIN NOT CONTENT WITH HAVING SOLD 90 BILLION HAMBURGERS AROUND THE WORLD LAST WEEK BEGAN HAWKING HOT DOGS FROM PUSHCARTS OUTSIDE TORONTO'S SKYDOME HOME TO WORLD SERIES CHAMPS THE BLUE JAYS BUT THE COMPANY THREW IN THE TOWEL AFTER SIX DAYS WHEN PUBLIC SYMPATHY BOILED UP IN FAVOR OF THE INDEPENDENT PUSH CART VENDORS THAT SET UP IN THE SHADOW OF THE HUGE STADIUM THE INDEPENDENTS' BEEF MCDONALD'S ALREADY HAS A MONOPOLY TO SELL ALL THE FAST FOOD INSIDE THE SKYDOME NOW THE COMPANY WAS PLAYING HARDBALL AS ITS PUSHCARTS THREATENED TO DRIVE SMALL OPERATORS OUT OF BUSINESS I'VE BEEN HERE THREE YEARS BUT SINCE LAST WEEK MY BUSINESS HAS BEEN COMPLETELY DESTROYED SAID LUCJA SZYMCZAKOWSKA WHO SAID SHE SUPPORTS HERSELF HER SISTER AND THREE CHILDREN BY SELLING HOT DOGS OUTSIDE THE SKYDOME WE MADE A MISTAKE SAID GEORGE COHON CHAIRMAN OF MCDONALD'S CANADIAN UNIT WE DIDN'T REALIZE THE SENSITIVITY OF THE ISSUE BESIDES ANGERING THE SMALLTIME VENDORS LOCAL SPORTS FANS WERE STEAMED WHEN THEY COULDN'T DISTINGUISH THE UNMARKED MCDONALD'S CARTS FROM ANY OTHERS MCDONALD'S EMPLOYEES AT THE SKYDOME WEAR BLUE JAYS TSHIRTS AND HATS INSTEAD OF THE COMPANY'S REGULAR UNIFORMS IF I'D HAVE KNOWN I WOULDN'T HAVE COME HERE SAID REG SMART A RETIREE FROM GUELPH ONTARIO SQUEEZING RELISH ON A HOT DOG THAT HE JUST LEARNED WAS FROM MCDONALD'S MCDONALD'S HAS THE CONCESSIONS INSIDE THE SKYDOME WHY DON'T THEY LEAVE THE OUTSIDE FOR THOSE OTHERS HE SAID MCDONALD'S ALSO GOT A PUBLIC GRILLING FOR HAVING A LEGAL LEG UP IN THE SKYDOME DOG FIGHT BECAUSE ITS PUSHCARTS WERE ON SKYDOME PROPERTY THE COMPANY DIDN'T HAVE TO BUY A VENDOR'S PERMIT AND COULD SET UP ITS CARTS ANYWHERE ON THE GROUNDS INDEPENDENT VENDORS WHO FORK OUT ABOUT 2000 CANADIAN DOLLARS US1525 A YEAR FOR A PERMIT CAN'T MOVE FROM A DESIGNATED LOCATION NOW OUT OF THE PUSHCART BUSINESS MCDONALD'S FACES LIQUIDATING ITS ASSETS WE'VE GOT FIVE HOT DOG CARTS WE'D LIKE TO SELL SAID THE COMPANY'S MR COHON 9308270197 930827 NALCO SLATES STOCK BUYBACK NAPERVILLE ILL NALCO CHEMICAL CO SAID ITS BOARD AUTHORIZED THE REPURCHASE OF AS MANY AS TWO MILLION SHARES OR ABOUT 29 OF ITS OUTSTANDING COMMON THE SPECIALTYCHEMICAL CONCERN CURRENTLY HAS ABOUT 69 MILLION COMMON SHARES OUTSTANDING 9308270196 930827 WHO'S NEWS FIRST OF AMERICA BANK CORP FIRST OF AMERICA BANK CORP KALAMAZOO MICH SAMUEL G STONE 47 YEARS OLD HAS BEEN NAMED SENIOR VICE PRESIDENT AND TREASURER OF THIS BANK HOLDING COMPANY MR STONE FORMERLY THE COMPANY'S VICE PRESIDENT AND DIRECTOR OF CORPORATE PLANNING SUCCEEDS TOM LAMBERT AS TREASURER MR LAMBERT 51 REMAINS CHIEF FINANCIAL OFFICER 9308270195 930827 WHO'S NEWS SPHINX PHARMACEUTICALS CORP SPHINX PHARMACEUTICALS CORP DURHAM NC CLAYTON I DUNCAN RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS BIOPHARMACEUTICAL COMPANY MR DUNCAN 44 YEARS OLD HAS BEEN WITH THE COMPANY SINCE 1988 HE SAID HIS RESIGNATION WILL HELP THE COMPANY IMPLEMENT ITS SUCCESSION PLAN WHICH WILL INCLUDE NEW SENIOR MANAGEMENT A SUCCESSOR HASN'T YET BEEN NAMED 9308270194 930827 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED AUG 20 ACCOUNTED FOR 133 OR AN AVERAGE 367 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME THIS INCLUDED PROGRAM TRADING RELATED TO THE AUG 20 MONTHLY EXPIRATION OF STOCKINDEX OPTIONS AND FUTURES BROKERAGE FIRMS EXECUTED AN ADDITIONAL 78 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 592 INVOLVED STOCKINDEX ARBITRAGE UP FROM 389 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 493 OF PROGRAM TRADING WAS EXECUTED BY FIRMS' FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 455 WAS FOR THEIR CUSTOMERS AN ADDITIONAL 52 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES FIRST BOSTON UBS SECURITIES AND SUSQUEHANNA EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY DID MOST OF ITS PROGRAM TRADING FOR ITS CUSTOMERS 9308270193 930827 WHO'S NEWS AMERICAN STOCK EXCHANGE AMERICAN STOCK EXCHANGE NEW YORK JULES L WINTERS 45 YEARS OLD WAS NAMED ACTING CHIEF EXECUTIVE BY THE BOARD OF GOVERNORS OF THIS EXCHANGE TO SERVE DURING A SEARCH FOR A CHAIRMAN TO SUCCEED JAMES R JONES RECENTLY NAMED US AMBASSADOR TO MEXICO MR WINTERS CHIEF OPERATING OFFICER SINCE DECEMBER WILL PERFORM ALL DUTIES OF CHAIRMAN EXCEPT PRESIDING AT BOARD MEETINGS 9308270192 930827 NEC CORP REVISES PROFIT FORECASTS FOR FISCAL YEAR SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S NEC CORP ISSUED REVISED EARNINGS PREDICTIONS FOR THE YEAR ENDING MARCH 31 1994 THE FACT THAT A SUBSIDIARY NEC HOME ELECTRONICS LTD WILL LIKELY BENEFIT FROM ITS RESTRUCTURING BY TURNING A PRETAX PROFIT THIS YEAR AFTER SEVERAL YEARS OF LOSSES HELPS KEEP THE OUTLOOK FOR NEC CONSOLIDATED PRETAX PROFIT UNCHANGED AT 40 BILLION YEN 3811 MILLION FROM THE PREDICTION ISSUED IN MAY AN NEC SPOKESMAN SAID ALSO HELPING GROUP EARNINGS ARE INCREASED SALES AND PRODUCTION LEVELS AT OVERSEAS SUBSIDIARIES ESPECIALLY IN THE US FOR ELECTRONIC DEVICES INCLUDING MEMORIES SAID A COMPANY SPOKESMAN BUT PERSISTENT SLUGGISHNESS IN JAPAN'S ELECTRONICS MARKET FORCED THE DOWNWARD REVISIONS AS AT OTHER ELECTRONICS MAKERS NEC SAID ON A CONSOLIDATED OR GROUP BASIS NEC EXPECTS FULLYEAR NET INCOME OF 10 BILLION YEN IN THE YEAR ENDED LAST MARCH THE COMPANY HAD A GROUP NET LOSS OF 4516 BILLION YEN AND A PRETAX LOSS OF 3769 BILLION YEN THE COMPANY NOW EXPECTS GROUP FULLYEAR SALES TO TOTAL 3630 TRILLION YEN 3459 BILLION COMPARED WITH 3700 TRILLION YEN PREDICTED IN MAY AND 3515 TRILLION YEN REALIZED LAST YEAR ON AN UNCONSOLIDATED BASIS FOR THE PARENT COMPANY ALONE NEC NOW SEES FULLYEAR PRETAX PROFIT AT 30 BILLION YEN DOWN FROM THE 50 BILLION YEN PREDICTED EARLIER BUT ABOVE THE 181 BILLION YEN PROFIT REALIZED IN THE LATEST YEAR IT EXPECTS PARENTCOMPANY NET INCOME OF 16 BILLION YEN BELOW THE 28 BILLION YEN PROFIT PREDICTED EARLIER AND LITTLE CHANGED FROM THE 165 BILLION YEN PROFIT IN THE RECENT YEAR PARENT COMPANY SALES ARE NOW SET AT 2960 TRILLION YEN BELOW 3030 TRILLION YEN EXPECTED EARLIER BUT ABOVE 2870 REALIZED IN THE PRIOR YEAR FOR THE FIRST HALF OF THE CURRENT FISCAL YEAR APRIL THROUGH SEPTEMBER NEC NOW EXPECTS PARENT PRETAX PROFIT OF SEVEN BILLION YEN BELOW THE 10 BILLION YEN PREDICTED IN MAY NET IS NOW SET AT FIVE BILLION YEN DOWN FROM SIX BILLION YEN AND FIRSTHALF PARENT SALES ARE PREDICTED AT 1340 TRILLION YEN LESS THAN THE 1380 TRILLION YEN OUTLOOK ISSUED IN MAY NEC DIDN'T ISSUE FIRSTHALF PREDICTIONS ON A CONSOLIDATED BASIS PRETAX PROFIT REPRESENTS OPERATING PROFIT PLUS NONOPERATING PROFIT INCLUDING FINANCIAL INCOME AND EXPENSES THE NET INCOME REPRESENTS PRETAX PROFIT PLUS EXTRAORDINARY GAINS OR LOSSES AND PAYMENTS OF TAXES 9308270191 930827 WHO'S NEWS AMERICAN RESTAURANT PARTNERS LP AMERICAN RESTAURANT PARTNERS LP WICHITA KAN NEIL JENSEN 38 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER OF THIS OPERATOR OF PIZZA HUT RESTAURANTS HE SUCCEEDS RODGER TAYLOR 46 WHO RESIGNED IN JULY MR JENSEN WAS SENIOR OPERATIONS DIRECTOR FOR AMERICAN SEAFOOD PARTNERS AN AFFILIATE OF THE PARTNERSHIP 9308270190 930827 KRUNG THAI BANK'S NET JUMPS BANGKOK KRUNG THAI BANK THAILAND'S SECONDLARGEST COMMERCIAL BANK SAID NET INCOME MORE THAN DOUBLED IN THE FIRST HALF OF 1993 TO 26 BILLION BAHT 1035 MILLION FROM 109 BILLION BAHT IN THE YEAREARLIER QUARTER QUARTERLY RESULTS PRETAX PROFIT REVENUE AND OTHER DETAILS WEREN'T RELEASED 9308270189 930827 FINANCING BUSINESS BOISE CASCADE CORP BOISE CASCADE CORP SAID IT REGISTERED AN OFFERING OF 75 MILLION DEPOSITORY SHARES EACH OF WHICH WILL AUTOMATICALLY CONVERT INTO A SHARE OF COMMON AFTER FOUR YEARS THE BOISE IDAHO FOREST PRODUCTS COMPANY SAID IT WILL USE THE PROCEEDS OF THE OFFERING TO REDUCE DEBT AND FOR OTHER CORPORATE PURPOSES THE LEAD UNDERWRITER IS GOLDMAN SACHS & CO 9308270188 930827 CANADIAN STEEL OUTPUT UP OTTAWA CANADIAN STEEL PRODUCTION TOTALED 289189 METRIC TONS IN THE WEEK ENDED SATURDAY UP 31 FROM 280580 TONS IN THE PRECEDING WEEK AND UP 66 FROM 271318 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS THE CUMULATIVE TOTAL FOR 1993 WAS 9191357 TONS UP 51 FROM 8744521 TONS A YEAR EARLIER 9308270187 930827 PRETAX PROFIT FELL IN 1ST HALF AT BAYER BASF SPECIAL TO THE WALL STREET JOURNAL FRANKFURT TWO OF GERMANY'S BIGGEST CHEMICAL COMPANIES POSTED WEAK RESULTS FOR THE FIRST HALF BOTH BAYER AG AND BASF AG WERE ONCE AGAIN HIT HEAVILY BY DEPRESSED EUROPEAN ECONOMIC CONDITIONS THEY SAID WHILE THE EARNINGS WERE IN LINE WITH EXPECTATIONS THE STOCKS STILL SLIPPED ON THE NEWS BASF LOST 250 MARKS TO 253 MARKS 15012 ITS FIRSTHALF PRETAX PROFIT PLUNGED 50 TO 483 MILLION MARKS 2866 MILLION FROM 972 MILLION MARKS A YEAR EARLIER BAYER DROPPED 380 MARKS OR 13 TO 29210 MARKS ITS FIRSTHALF PROFIT SANK 20 TO 141 BILLION MARKS FROM 175 BILLION MARKS AS FORESEEN BAYER'S LARGE HEALTHCARE DIVISION HELPED IT TURN IN FAR STRONGER NUMBERS THAN BASF WHOSE MAIN CONCENTRATION IS THE SUFFERING BUSINESS OF BULK CHEMICALS BAYER GROUP SALES FELL 53 TO 2101 BILLION MARKS FROM 2218 BILLION MARKS A YEAR AGO AT BASF SALES DECLINED 68 TO 2205 BILLION MARKS FROM THE PREVIOUS 2365 BILLION MARKS HOECHST ANOTHER OF GERMANY'S THREE CHEMICAL GIANTS IS SCHEDULED TO RELEASE ITS RESULTS MONDAY ANALYSTS FORECAST A 2027 DROP IN ITS SIXMONTH PRETAX PROFIT BOTH BAYER AND BASF SAID THEY SEE NO END IN SIGHT TO EUROPE'S ECONOMIC DOWNTURN AND THAT THEY EXPECT THE RECESSION TO CONTINUE DRAGGING DOWN THEIR RESULTS HOWEVER SOME ANALYSTS SEE SMALL SIGNS OF HOPE FOR THE CHEMICAL MAKERS DESPITE THEIR OWN GLOOMY FORECASTS VOLUMES ARE STABILIZING AT A LOW LEVEL SAID HORST GREVEN CHEMICALS ANALYST AT MERCK FINCK & CO IN DUESSELDORF HE NOTES THAT THE PERCENTAGE DROPS IN SALES AT BASF AND BAYER WERE RELATIVELY SMALL COMPARED WITH THE LARGE DROPS IN EARNINGS HOWEVER IT IS A LITTLE TOO EARLY TO EXPECT ANY SIGNIFICANT IMPROVEMENTS IN THE CHEMICAL COMPANIES' EARNINGS SAYS MR GREVEN WHO FORECASTS GERMANY'S ECONOMY WILL FIRST BEGIN TO RECOVER NEXT YEAR AT A NEWS CONFERENCE IN LONDON BASF CHAIRMAN JUERGEN STRUBE SAID THE COMPANY DOESN'T EXPECT ANY CYCLICAL RECOVERY OF BUSINESS IN THE SECOND HALF OF 1993 BUT HE ADDED THAT FROM 1994 ONWARD SLOWLY AT FIRST BUT AT INCREASED SPEED IN 1995 WE EXPECT BUSINESS TO REVIVE STILL MR STRUBE ALSO OUTLINED PLANS FOR FURTHER COSTCUTTING AND JOB REDUCTIONS HE SAID THAT BETWEEN 1989 AND THE END OF 1993 THE BASF GROUP WILL HAVE SHED NEARLY 20000 JOBS WITH ABOUT 15000 OF THEM IN GERMANY BEGINNING IN 1994 THE COMPANY IS PLANNING TO CUT ANOTHER 4000 JOBS HE SAID 9308270186 930827 ITALIAN BANK LENDING RISES 22 MILAN LENDING BY ITALIAN BANKS ROSE 22 IN JULY FROM A YEAR AGO ACCORDING TO PROVISIONAL STATISTICS FROM THE BANK OF ITALY THE RATE WAS WELL DOWN FROM A 30 INCREASE IN JUNE AND FROM MAY'S 44 RATE 9308270185 930827 SWIRE PACIFIC PROFIT FELL 17 IN FIRST HALF ON CATHAY WEAKNESS HONG KONG SWIRE PACIFIC LTD ONE DAY AFTER ITS 52OWNED CATHAY PACIFIC AIRWAYS ANNOUNCED A 46 PLUNGE IN FIRSTHALF PROFIT SAID ITS OWN NET INCOME FOR THE FIRST HALF FELL 17 FROM A YEAR EARLIER THE COMPANY SAID INTERIM PROFIT FELL TO 180 BILLION HONG KONG DOLLARS US2323 MILLION OR HK114 A SHARE FROM THE HK218 BILLION OR HK137 A SHARE A YEAR EARLIER IT BLAMED THE DROP ON CATHAY PACIFIC'S POOR PERFORMANCE LARGELY THE RESULT OF A FLIGHTATTENDANTS' STRIKE AND A STRONG PERFORMANCE IN THE YEAREARLIER PERIOD ON EXCEPTIONALLY LARGE PROPERTY SALES ANALYSTS TOOK SWIRE'S RESULTS IN STRIDE HAVING BEEN STEELED BY THE CATHAY PACIFIC SHOCK AFTER ADJUSTING FOR CATHAY'S DISAPPOINTMENT SWIRE'S EARNINGS WERE WITHIN EXPECTATIONS SAID EISHA CHEN AN ANALYST AT LEHMAN BROTHERS IN HONG KONG IN THE COMPANY'S EARNINGS ANNOUNCEMENT CHAIRMAN PETER SUTCH SOUGHT TO REASSURE INVESTORS WORRIED THAT THE COMPANY'S DIVIDEND MIGHT BE CUT BECAUSE OF THE EARNINGS SLUMP I EXPECT THAT DIVIDENDS FOR THE FULL YEAR WILL NOT BE LESS THAN THOSE PAID IN RESPECT OF 1992 HE SAID THAT SWIRE'S EARNINGS WEREN'T MORE SEVERELY AFFECTED BY CATHAY PACIFIC'S REFLECTS THE COMPANY'S CONTINUED SHIFT TOWARD THE PROPERTY BUSINESS IN THE PAST CATHAY PACIFIC CONTRIBUTED MORE THAN HALF OF SWIRE'S EARNINGS BUT THE PROPORTION HAS DROPPED TO LESS THAN 40 THIS YEAR FINANCE DIRECTOR PETER JOHANSEN SAID THAT THE CONTRIBUTION OF SWIRE'S PROPERTY DIVISION WILL CONTINUE TO GROW AND THAT THE CONSISTENCY OF THE DIVISION'S EARNINGS SHOULD ALSO IMPROVE AS ITS RELIANCE ON RECURRENT RENTAL INCOME RATHER THAN ONETIME PROPERTY SALES INCREASES IN LAST YEAR'S FIRST HALF PROFIT OF HK630 MILLION FROM THE SALE OF AN INVESTMENT PROPERTY MADE THAT PERIOD'S STRONG EARNINGS A BIT OF AN ABERRATION ACCORDING TO MR JOHANSEN SWIRE HAD HK364 MILLION FROM SALES OF INVESTMENT PROPERTIES IN THE LATEST PERIOD 9308270184 930827 WHO'S NEWS SONIC CORP SONIC CORP OKLAHOMA CITY CLIFFORD HUDSON 38YEAROLD FORMER CHIEF FINANCIAL OFFICER OF THIS DRIVEIN RESTAURANT CHAIN WAS NAMED TO THE NEW POSITIONS OF EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER MR HUDSON WAS ALSO ELECTED TO THE BOARD ADDITIONALLY ROBERT ROSENBERG 55YEAROLD CHIEF EXECUTIVE OFFICER OF ALLIED LYONS RETAILING USA WAS NAMED TO THE BOARD SUCCEEDING DONALD DOYLE 46 WHO LEFT TO BECOME CHIEF EXECUTIVE OFFICER OF CARL KARCHER ENTERPRISES A CALIFORNIABASED HAMBURGER CHAIN THE BOARD NOW HAS NINE MEMBERS 9308270183 930827 WHO'S NEWS CALMAT CO CALMAT CO LOS ANGELES H JAMES GALLAGHER WAS ELECTED EXECUTIVE VICE PRESIDENT OF FINANCE AND CHIEF FINANCIAL OFFICER OF THIS PRODUCER AND DISTRIBUTOR OF CONCRETE AGGREGATES AND ASPHALT HE SUCCEEDS RONALD HADFIELD 53 YEARS OLD WHO RETIRED MR GALLAGHER 46 WAS EXECUTIVE VICE PRESIDENT CHIEF FINANCIAL OFFICER OF PACIFIC ENTERPRISES OIL CO AND SENIOR VICE PRESIDENT CHIEF FINANCIAL OFFICER OF PACIFIC INTERSTATE CO TWO SUBSIDIARIES OF PACIFIC ENTERPRISES INC 9308270182 930827 WHO'S NEWS CHASE MANHATTAN CORP CHASE MANHATTAN CORP NEW YORK F DANIEL PRICKETT 47 YEARS OLD WAS NAMED SENIOR US AREA EXECUTIVE FOR CHASE MANHATTAN PRIVATE BANK HE SUCCEEDS SENIOR VICE PRESIDENT DEBORAH L TALBOT 42 WHO WAS NAMED HEAD OF CHASE GLOBAL PAYMENT & TREASURY SERVICES A UNIT OF CHASE INFOSERV INTERNATIONAL MR PRICKETT JOINED THE CHASE PRIVATE BANK IN MARCH AS ITS SENIOR INVESTMENT EXECUTIVE PREVIOUSLY HE HAD BEEN EXECUTIVE VICE PRESIDENT OF THE BOSTON CO SUBSIDIARY OF AMERICAN EXPRESS CO 9308270181 930827 SWISS PENSION FUNDS ALTER STYLE TO SEEK RETURNS IN FOREIGN INVESTMENTS STOCKS BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL ZURICH TRADITIONALLY CONSERVATIVE SWISS PENSION FUNDS ARE INTERNATIONALIZING PORTFOLIOS AND INVESTING MORE IN STOCKS AS THEY BECOME LESS RISKSHY AND SEEK MORE RETURN SINCE A LIBERALIZATION OF REGULATIONS GOVERNING OCCUPATIONAL PENSION PLANS WENT INTO EFFECT IN SWITZERLAND JAN 1 THE FUNDS HAVE BEEN ALLOWED TO INVEST MORE OF THEIR 265 BILLION SWISS FRANCS 17978 BILLION OF CAPITAL IN FOREIGN CURRENCIES AND IN FOREIGN AND DOMESTIC SHARES SWISS PENSION FUNDS CAN NOW INVEST UP TO 25 IN FOREIGN STOCKS 50 IN BOTH DOMESTIC AND FOREIGN STOCKS AND 30 IN ALL INVESTMENTS DENOMINATED IN FOREIGN CURRENCIES SUCH AS BONDS REAL ESTATE OR MONEYMARKET PAPER THE OLD LEGAL LIMITS WERE RESPECTIVELY 10 30 AND 20 THIS YEAR WE HAVE REALLY BUILT UP OUR PENSION FUNDS' INTERNATIONAL SIDE SAID PETER MEIER HEAD OF PORTFOLIO MANAGEMENT AT ZURICH CANTONAL BANK WHICH MANAGES 10 BILLION FRANCS IN PENSION FUNDS MR MEIER'S PENSIONFUND STRATEGY IS TO UTILIZE THE FULL 30 ALLOCATED TO FOREIGNCURRENCY INVESTMENTS HE TICKS OFF A NUMBER OF REASONS WHY SWISS INTEREST RATES ARE LOW RETURNS ARE BETTER ABROAD AND FOREIGN DIVERSIFICATION DOESN'T INCREASE RISK AS ONCE BELIEVED BY CAUTIOUS SWISS PENSIONFUND MANAGERS BUT REDUCES IT HIS ONLY REGRET IS THAT PENSION FUNDS CAN'T INVEST MORE INTERNATIONALLY THIRTY PERCENT IS TOO LITTLE MR MEIER SAYS HIS OPINION IS BACKED BY INVESTMENT STRATEGISTS AT PICTET & CIE AND LOMBARD ODIER & CIE WHO ALSO OBJECT TO THE LEGAL LIMIT TRUE TO THEIR SECRETIVE TRADITION THE TWO GENEVA PRIVATE BANKS WON'T REVEAL THE VOLUME OF PENSION FUNDS UNDER MANAGEMENT BUT THE BANKS ARE CONSIDERED AMONG THE COUNTRY'S TOP MANAGERS OUR FOCUS IS WORLD DIVERSIFICATION AND WE ARE USING THE MAXIMUM 30 INVESTMENT ABROAD SAYS JEANMICHEL MIVELAZ HEAD OF SWISS INSTITUTIONAL ASSET MANAGEMENT AT LOMBARD ODIER WE NEED THE FOREIGN DIVERSIFICATION AND WE ARE USING THE MAXIMUM ALLOWED SAYS MICHEL THETAZ HEAD OF INSTITUTIONAL INVESTORS AT PICTET WHEN IT COMES TO UTILIZATION OF THE 50 MAXIMUM FOR DOMESTIC AND FOREIGN STOCKS FUND MANAGERS ARE MOVING MORE SLOWLY HOWEVER THE TREND IS UNMISTAKABLE SAYS STEPHAN STEINMANN EXECUTIVE AT THE INVESTMENTSTIFTUNG FUER PERSONALVORSORGE OR IST WHICH MANAGES 22 BILLION FRANCS FOR PENSION FUNDS OF WHICH 750 MILLION FRANCS IS ALREADY INVESTED IN SHARES OF THAT 300 MILLION FRANCS IS IN FOREIGN STOCKS NEVERTHELESS WHEN IT COMES TO INVESTING IN STOCKS MANY SWISS FUNDS HAVE A LONG WAY TO GO IST EXECUTIVE JURG SCHILLER ESTIMATES THE AVERAGE SHARE OF STOCKS IN SWISS PENSION FUNDS AT 10 WE WILL SEE MAJOR GROWTH IN THE FUTURE SAYS MR SCHILLER BY THE YEAR 2000 STOCKS' SHARE WILL HAVE RISEN TO 25 PREDICTS BANK AM BELLEVUE CHIEF EXECUTIVE OFFICER ERNST MUELLERMOEHL WITH THE VOLUME OF ASSETS HELD IN SWISS PENSION FUNDS RISING EACH YEAR THIS WILL ENTAIL A DRAMATIC FLOW OF FUNDS INTO SHARES HE ADDS RECENT STATISTICS ON ASSETS HELD BY SWISS PENSION FUNDS ARE NOTORIOUSLY HARD TO GET THE LAST OFFICIAL FIGURE PUBLISHED BY THE FEDERAL OFFICE FOR STATISTICS IS FOR 1990 WHEN VOLUME STOOD AT 215 BILLION FRANCS UP FROM 198 BILLION FRANCS THE YEAR EARLIER INDUSTRY EXPERTS NOW ESTIMATE CAPITAL AT AROUND 265 BILLION FRANCS AND PROJECT IT WILL RISE TO BETWEEN 433 BILLION FRANCS AND 450 BILLION FRANCS BY 2000 PENSION FUNDS ARE THE LARGEST GROUP OF SWISS INSTITUTIONAL INVESTORS A NEW GENERATION OF SWISS PENSION FUND MANAGERS ARE INSTALLING THEMSELVES AND THEY FOLLOW MODERN PORTFOLIO MANAGEMENT THEORY SAYS MR MUELLER WHAT WE ARE GOING TO SEE IS MORE COMPETITION BETWEEN PENSION FUNDS AND STOCKS PROVIDE THE BEST INVESTMENT PERFORMANCE WERNER STREBEL CHIEF EXECUTIVE OFFICER AT PARTNER PORTFOLIO CONSULTING AG WHICH ADVISES 70 PENSION FUNDS WITH ASSETS OF 20 BILLION FRANCS SAYS THAT IN THE PAST THERE WAS NO PRESSURE ON PENSION FUND MANAGERS AND THEY WERE VERY CONSERVATIVE THE PHILOSOPHY WAS TO PREVENT LOSSES RATHER THAN MAKE PROFITS THERE IS PERFORMANCE PRESSURE NOW AND THAT MEANS MORE SHARES AN INTERNATIONAL COMPARISON OF PENSIONFUND PERFORMANCE BY CONSULTANTS WYATT CO SHOWED THAT IN THE THREEYEAR PERIOD FROM 1990 THROUGH 1992 MEDIAN BALANCED RETURNS IN EXCESS OF SALARY INFLATION AT SWISS PENSION FUNDS WAS 12 COMPARED WITH 57 IN THE US A BANK JULIUS BAER & CIE REPORT ON SWISS INSTITUTUTIONAL INVESTORS COMMENTED THAT PRESENT PENSIONFUND PERFORMANCE RAISES DOUBTS ABOUT WHETHER REAL PURCHASING POWER WILL BE MAINTAINED FOR FUTURE PENSIONS IN THE PAST MINIMUM RETURNS WERE OFFSET BY GAINS THAT AROSE WHEN AN INSURED PERSON CHANGED PENSION FUNDS AND COULD USUALLY ONLY TAKE A PART OF THE EMPLOYER'S CONTRIBUTION WITH HIM THIS YEAR THE SWISS PARLIAMENT APPROVED A LEGAL CHANGE THAT WILL PREVENT THE GAIN CONSIDERABLY INCREASING PRESSURE ON PENSION FUND MANAGERS ALREADY FACED WITH THE CHALLENGE OF AN AGING POPULATION BAER SAYS WITH THE CAPITALIZATION OF SWISS SHARES TRADED ON THE ZURICH STOCK EXCHANGE CURRENTLY AT AROUND 325 BILLION FRANCS FUND STRATEGISTS SAY THE SIZE OF THE DOMESTIC MARKET LEAVES LITTLE CHOICE BUT TO INCREASE INVESTING ABROAD PARTNER PORTFOLIO'S MR STREBEL ESTIMATES THAT 75 OF SHARES HELD BY PENSION FUNDS ARE DOMESTIC AND 25 FOREIGN BY THE YEAR 2000 HE SAYS THE BREAKDOWN WILL BE 60 SWISS AND 40 FOREIGN FOREIGN SHARES HAVE A SUBSTANTIAL GROWTH POTENTIAL WITHIN OUR PENSION FUNDS MAINTAINS HANS KAUFMANN HEAD OF BROKERAGE RESEARCH AT BAER THE PRIORITY HAS BECOME INTERNATIONALIZATION PICTET'S MR THETAZ AGREES PENSION FUND MANAGERS ARE LOOKING FOR BETTER PERFORMANCE PROSPECTS INVESTMENT IN FOREIGN EQUITIES WILL JUMP LOMBARD ODIER'S MR MIVELAZ SAYS PENSION FUNDS MANAGED BY HIS BANK HAVE BEEN HOLDING THE LION'S SHARE OF THEIR INTERNATIONAL ASSETS IN FOREIGN BONDS HOWEVER HE ADDS WE ARE SWINGING OUT OF BONDS AND INTO FOREIGN EQUITIES AN INDICATION OF RISING PENSIONFUND INTEREST IN FOREIGN EQUITIES IS PROVIDED BY IST WHICH LAUNCHED THE GLOBE INDEX SWITZERLAND'S FIRST INDEXED GLOBAL EQUITY FUND FOR PENSION SCHEMES THIS MONTH MR SCHILLER SAID THERE WAS AN AMAZING INTEREST THERE IS TOO LITTLE SWISS MATERIAL AROUND PENSION FUNDS WANT INTERNATIONAL OPPORTUNITIES WHEN BZ BANK ZURICH AG LAUNCHED THE INVESTMENT COMPANY GAS VISION ON AUG 9 FOR THE PURPOSE OF INVESTING IN FOREIGN INDUSTRIAL GAS PRODUCERS CHIEF EXECUTIVE OFFICER MARTIN EBNER SAID THE MOVE WAS PROMPTED LARGELY BY PENSION FUNDS' DESIRE TO INVEST MORE ABROAD GAS VISION AWAITS LISTING ON SWISS EXCHANGES IN TELEPHONE TRADING THE STOCK HAS JUMPED 7 FROM ITS ISSUE PRICE OF 500 FRANCS 9308270180 930827 TYCO SIGNS PACT WITH TOY BIZ MT LAUREL NJ TYCO TOYS INC SAID IT SIGNED AN AGREEMENT WITH TOY BIZ INC TO DISTRIBUTE TOY BIZ'S XMEN LINE OF ACTION FIGURES WORLDWIDE EXCLUDING NORTH AMERICA AND JAPAN IN A NEWS RELEASE THE COMPANY SAID DISTRIBUTION WILL BEGIN IN JANUARY 1994 TOY BIZ A 46OWNED AFFILIATE OF MARVEL ENTERTAINMENT GROUP INC HAS THE MASTER TOY LICENSE FOR XMEN AND DISTRIBUTES THE LINE IN NORTH AMERICA 9308270179 930827 ACC CORP UNIT GETS 4 PACTS ROCHESTER NY ACC CORP SAID ITS ACC LONG DISTANCE CORP UNIT SIGNED MULTIYEAR AGREEMENTS WORTH A TOTAL OF 8 MILLION TO PROVIDE LONGDISTANCE TELEPHONE SERVICE AT FOUR COLLEGES IN NEW YORK AND MASSACHUSETTS THE COMPANY SAID IT WILL PROVIDE SERVICE TO STUDENTS FACULTY AND IN SOME CASES ADMINISTRATION FOR PAUL SMITH'S COLLEGE IN PAUL SMITHNY CULINARY INSTITUTE OF AMERICA IN HYDE PARK NY DAEMEN COLLEGE IN AMHERST NY AND BECKER COLLEGE IN WORCESTER MASS CONTRACTS RUN FOR BETWEEN FIVE AND 10 YEARS 9308270178 930827 PRIMARK BUYS TWO BRITISH FIRMS MCLEAN VA PRIMARK CORP SAID IT ACQUIRED WEATHER DEPARTMENT LTD AND COMPUTER DEPARTMENT LTD TWO BRITISH WEATHER INFORMATION SYSTEMS COMPANIES TERMS WEREN'T DISCLOSED WEATHER DEPARTMENT PROVIDES FORECASTING AND PROGRAMMING FOR MEDIA CONCERNS AND COMPUTER DEPARTMENT PROVIDES CUSTOMIZED WEATHER INFORMATION SYSTEMS BOTH FIRMS HAVE COMBINED ANNUAL REVENUE OF MORE THAN 15 MILLION PRIMARK SAID PRIMARK AN INFORMATION SERVICES CONCERN SAID THE PURCHASES PROVIDE A FOOTHOLD IN THE EUROPEAN MARKET 9308270177 930827 TEXTRON TO SELL CESSNA DIVISION PROVIDENCE RI TEXTRON INC SAYS IT PLANS TO SELL THE MCCAULEY ACCESSORY DIVISION OF ITS CESSNA AIRCRAFT SUBSIDIARY MCCAULEY VANDALIA OHIO MAKES PROPELLER SYSTEMS FOR TURBOPROP AND PISTONENGINE AIRCRAFT TEXTRON WOULD NOT DISCLOSE THE UNIT'S ANNUAL REVENUE CESSNA WHICH WAS ACQUIRED BY TEXTRON FROM GENERAL DYNAMICS CORP IN FEBRUARY 1992 IS IN WICHITA KAN AND MAKES BUSINESS JETS AND TURBOPROP AIRCRAFT TEXTRON AN AEROSPACE COMMERCIAL PRODUCTS AND FINANCIAL SERVICES CONCERN HAD 1992 REVENUE OF 835 BILLION 9308270175 930827 ZURN INDUSTRIES' POWER PLANT ERIE PA ZURN INDUSTRIES INC SAID IT RECEIVED NOTICE TO PROCEED WITH PLANS TO BUILD A 25 MILLION POWER GENERATION PLANT FOR THE CITY OF REDDING CALIF THE COMPANY A MANUFACTURER OF POWER GENERATION AND WATERCONTROL EQUIPMENT SAID INDUSTRIAL POWER TECHNOLOGY A CALIFORNIA DEVELOPMENT CONCERN TOLD ZURN TO PROCEED ON THE DESIGN AND CONSTRUCTION OF THE 73MEGAWATT NATURAL GAS FUEL POWER GENERATION PLANT COMPLETION OF THE PROJECT IS PLANNED FOR NEXT SUMMER 9308270174 930827 TECHNOLOGY DELL COMPUTER RAISES 225 MILLION WITH STOCK DEBT BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DELL COMPUTER CORP HUNGRY FOR ADDITIONAL CASH SAID IT RAISED 225 MILLION FROM PRIVATE PLACEMENTS OF STOCK AND DEBT THE DEALS WHICH HAD BEEN EXPECTED WERE VIEWED AS NECESSARY EVILS ON WALL STREET WHILE ANALYSTS LAUDED THE COMPANY FOR RAISING MORE MONEY MANY COMPLAINED THAT THE JUNKBONDLEVEL INTEREST RATE ON THE DEBT WAS EXORBITANT EVEN FOR A COMPANY WITH DELL'S RECENT FINANCIAL WOES THE PRICING REFLECTS THE NEARTERM PROSPECTS OF THE COMPANY WHICH AREN'T THAT GOOD SAID SANJIV G HINGORANI AN ANALYST AT NOMURA RESEARCH INSTITUTE AMERICA IN NEW YORK I DON'T THINK THEY HAD A LOT OF OPTIONS EARLIER THIS MONTH DELL REPORTED ITS FIRST QUARTERLY LOSS EVER THANKS IN PART TO 71 MILLION IN CHARGES TO COVER THE COSTS OF SELLING OFF EXCESS INVENTORY AND SCRAPPING A DISAPPOINTING NOTEBOOK COMPUTER LINE LIKE MANY PERSONAL COMPUTER COMPANIES DELL A ONETIME WALL STREET FAVORITE HAS SUFFERED AS A RESULT OF TUMBLING PRICES AND WICKED COMPETITION FOR NEW PC BUYERS YESTERDAY THE AUSTIN TEXAS COMPANY SAID IT RAISED 125 MILLION FROM THE SALE OF 125 MILLION SHARES OF CONVERTIBLE PREFERRED STOCK THE SHARES RATED B/B2 AND SOLD TO INSTITUTIONAL INVESTORS THAT DELL WOULDN'T NAME ARE CONVERTIBLE INTO 421 SHARES OF DELL COMMON STOCK DELL STOCK CLOSED AT 1825 A SHARE DOWN 25 CENTES IN NATIONAL OVERTHECOUNTER TRADING DELL ALSO SAID IT SOLD 100 MILLION IN UNSECURED SENIOR NOTES AT AN INTEREST RATE OF 11 THE NOTES WERE RATED AT BB/B1 THIS WAS A JUNK BOND DEAL SAID NEERAJ VOHRA AN ANALYST AT STANDARD & POOR'S CORP IN NEW YORK IT'S GOT TO BE A REFLECTION OF WHAT EVERYONE EXPECTS TO HAPPEN IN THE PC INDUSTRY OVER THE NEXT MONTH OR SO IT'S CLEARLY NOT GOOD NEWS MR VOHRA SAID DELL'S INTEREST RATE WAS TYPICAL FOR DEBT CARRYING THE BBRATING ANALYSTS GUESS THE DEALS WILL COST DELL ABOUT 196 MILLION A YEAR IN ADDED INTEREST EXPENSES WHILE DELL OFFICIALS DECLINED TO COMMENT ON THE PROJECTED COSTS TO THE COMPANY THEY PRAISED THE DEBT DEAL NOTING THEY WERE ABLE TO RAISE MONEY WITHOUT GIVING AWAY AN ADDITIONAL STAKE IN THE COMPANY I FEEL QUITE GOOD ABOUT IT ACTUALLY SAID THOMAS J MEREDITH CHIEF FINANCIAL OFFICER WE ARE NOW A MUCH STRONGERPOSITIONED COMPANY ONCE BOTH DEALS ARE COMPLETE MR MEREDITH SAID DELL WILL HAVE ABOUT 200 MILLION IN CASH AND INVESTMENTS THE COMPANY ALSO HAS ABOUT 70 MILLION OUTSTANDING UNDER AN EXISTING BANK LINE 9308270173 930827 SOUTHLAND VIOLATED LAWS BREACHED PACTS FRANCHISEE SUIT SAYS A WALL STREET JOURNAL NEWS ROUNDUP SOUTHLAND CORP WAS ACCUSED OF VIOLATING ANTITRUST LAWS AND BREACHING CONTRACTS WITH FRANCHISEES IN A CIVIL LAWSUIT FILED IN A CALIFORNIA STATE COURT THE SUIT FILED BY A GROUP OF CALIFORNIA 7ELEVEN CONVENIENCESTORE FRANCHISEES INCLUDES A HOST OF ALLEGATIONS AGAINST THE DALLASBASED COMPANY ITS PRINCIPAL OWNER ITOYOKADO CO OF JAPAN AND MORE THAN A DOZEN SOUTHLAND SUPPLIERS THE SUIT WHICH SEEKS CLASSACTION STATUS ALLEGES THAT SOUTHLAND VIOLATED ANTITRUST LAWS BY FIXING RETAIL PRICES WITH SOME OF ITS VENDORS AND BY CONSPIRING WITH WALMART STORES INC'S MCLANE CO DISTRIBUTION UNIT TO DIVIDE WHOLESALE MARKET AREAS IN CALIFORNIA AMONG OTHER ALLEGED VIOLATIONS THE ACTION ALSO CHARGES THAT SOUTHLAND VIOLATED TERMS OF ITS FRANCHISE AGREEMENTS BY NOT PASSING ALONG TO FRANCHISEES DISCOUNTS AND FEES IT GETS FROM VENDORS BY CHARGING FRANCHISEES ADVERTISING FEES AND USING THE MONEY FOR OTHER PURPOSES AND BY FAILING TO MEET CONTRACTUAL OBLIGATIONS TO PROVIDE EQUIPMENT FINALLY THE SUIT ARGUES THAT UNDER STATE LAW FRANCHISEES CAN'T BE FORCED TO STAY OPEN 24 HOURS A DAY AS THEIR SOUTHLAND CONTRACTS REQUIRE HELEN ROWE AN ATTORNEY FOR THE PLAINTIFFS WHO SHE SAID REPRESENT NEARLY 100 FRANCHISEES SAID THAT BETWEEN 11 PM AND 5 AM THE STORES SEE THE FEWEST CUSTOMERS AND THE MOST ROBBERIES AND ASSAULTS A SPOKESWOMAN FOR SOUTHLAND SAID THE CONVENIENCESTORE OPERATOR WAS AWARE OF THE SUIT BUT HADN'T BEEN SERVED YET AND DECLINED TO COMMENT A WALMART SPOKESMAN SAID THE RETAILER HADN'T SEEN A COPY OF THE SUIT AND THUS COULDN'T COMMENT SOUTHLAND HAS STRUGGLED WITH ITS FRANCHISEES BEFORE MOSTLY AS A RESULT OF CONTRACTUAL CHANGES THAT BEGAN WHEN DEBT FROM A 1987 LEVERAGED BUYOUT DROVE THE COMPANY INTO CHAPTER 11 BANKRUPTCY REORGANIZATION IN 1988 A DISPUTE WITH WASHINGTON DC FRANCHISEES OVER THE WAY STORE PROFITS ARE SPLIT GREW SO ACRIMONIOUS THAT A LOCAL GOVERNING BODY INTERVENED PASSING A LAW REQUIRING A 60DAY WARNING BEFORE THE COMPANY CAN TERMINATE A FRANCHISE AGREEMENT OVER A BREACHOFCONTRACT DISPUTE SOUTHLAND HAS PAID 165 MILLION TO DATE TO SETTLE A 1990 CLASSACTION SUIT BY CALIFORNIA FRANCHISEES WHO SAID THE COMPANY HAD VIOLATED USURY LAWS BY OVERCHARGING INTEREST ON FRANCHISEE DEBTS FOR PURCHASES AND INVENTORY A SOUTHLAND SPOKESWOMAN SAID ABOUT 200000 IN LIABILITY REMAINS IN THAT CASE 9308270172 930827 OCCIDENTAL COMPLETES SALE LOS ANGELES OCCIDENTAL PETROLEUM CORP SAID IT COMPLETED THE SALE OF A 20 STAKE IN ITS OCCIDENTAL EXPLORATION OF ARGENTINA INC UNIT TO ASTRA COMPANIA ARGENTINA DE PETROLEO SA OF ARGENTINA FOR ABOUT 24 MILLION ASTRA ALSO PAID 10 MILLION FOR AN OPTION EXERCISABLE IN JULY 1994 TO ACQUIRE OCCIDENTAL'S REMAINING 80 INTEREST IN THE ARGENTINE OIL AND GAS OPERATIONS 9308270171 930827 WHO'S NEWS MCI COMMUNICATIONS CORP MCI COMMUNICATIONS CORP WASHINGTON THIS TELECOMMUNICATIONS COMPANY NAMED JAMES SCHNEIDER 40 YEARS OLD SENIOR VICE PRESIDENT AND CONTROLLER MR SCHNEIDER HAD BEEN ACCOUNTING FIRM PRICE WATERHOUSE'S LEAD PARTNER ON THE MCI ACCOUNT HE SUCCEEDS ROY NASH RECENTLY NAMED CHIEF FINANCIAL OFFICER OF THE MCI/BRITISH TELECOM NEW JOINT VENTURE FIRM WHO HAD BEEN VICE PRESIDENT AND CONTROLLER MR SCHNEIDER'S DUTIES WILL BE SOMEWHAT BROADER ALSO CONNIE WEAVER 40 DIRECTOR OF INVESTOR RELATIONS WAS NAMED VICE PRESIDENTINVESTOR RELATIONS A NEW OFFICERLEVEL POSITION 9308270170 930827 WHO'S NEWS CONCURRENT COMPUTER CHAIRMAN RESIGNS 4THPERIOD NET ROSE OCEANPORT NJ CONCURRENT COMPUTER CORP WHILE REPORTING MUCH IMPROVED FOURTHQUARTER PROFIT SAID DENIS R BROWN THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER WHO STEERED THE COMPANY AWAY FROM THE BRINK OF BANKRUPTCY TOOK EARLY RETIREMENT FOR PERSONAL REASONS WITH THE RESIGNATION OF MR BROWN 53 YEARS OLD THE TOP POSTS WILL GO TO JOHN T STIHL 60 WHO IS ALSO PRESIDENT A SPOKESMAN SAID MR BROWN'S RESIGNATION ANNOUNCED AT A BOARD MEETING WEDNESDAY WAS QUITE UNEXPECTED IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY CONCURRENT'S SHARES FELL 625 CENTS TO 325 JEFFRY CANIN AN ANALYST WITH SALOMON BROS SAID THE TRANSITION TO MR STIHL'S LEADERSHIP WILL BE SMOOTH JOHN STIHL HAS BEEN EFFECTIVELY RUNNING THE COMPANY AS MR BROWN COMPLETED THE FINANCING HE SAID CONCURRENT RECENTLY MADE A 60 MILLION PUBLIC OFFERING AS PART OF A RESTRUCTURING TO REDUCE DEBT THE CONCURRENT SPOKESMAN SAID ORGANIZATIONAL CHANGES DESIGNED TO CONSOLIDATE CERTAIN OPERATIONS AND REDUCE THE NUMBER OF LEVELS REPORTING TO MR STIHL WILL BE ANNOUNCED IN THE NEXT FEW WEEKS BUT HE SAID THERE IS NO PLAN TO NAME A NEW PRESIDENT IN THE QUARTER ENDED JUNE 30 THE REALTIME COMPUTING SYSTEMS MAKER REPORTED A PROFIT OF 11 MILLION OR 11 CENTS A SHARE COMPARED WITH 70000 OR ONE CENT A SHARE THE YEAR BEFORE REVENUE ROSE 82 TO 557 MILLION FOR THE FISCAL YEAR NET INCOME TOTALED 39 MILLION OR 40 CENTS A SHARE IN 1992 FISCAL YEAR CONCURRENT HAD A NET INCOME OF 601 MILLION OR 813 A SHARE REFLECTING A 611 MILLION EXTRAORDINARY GAIN RESULTING FROM EARLY DEBT RETIREMENT EXCLUDING THE EXTRAORDINARY ITEM THE COMPANY HAD A LOSS THAT YEAR OF 955000 OR 13 CENTS A SHARE REVENUE FELL 05 IN THE YEAR JUST ENDED TO 2205 MILLION 9308270169 930827 REVIEW & OUTLOOK EDITORIAL ASIDES MICHAEL'S AUGUST THERE'S A RULE OF THUMB THAT GREAT EVENTS OCCUR IN THE DOG DAYS OF AUGUST THE RUSSIAN COUP IRAQ'S INVASION OF KUWAIT COULD IT BE THAT THE FORCES OF THE UNIVERSE HAVE CONSPIRED THIS PARTICULAR AUGUST TO DELIVER UNTO US NOT BILL CLINTON'S VINEYARD VACATION BUT THE MICHAEL JACKSON SEXABUSE CASE SURELY THE WILDNESS OF THE RUMORS ATTENDING THE GLOVED ONE ARE FILLING UP MANY EMPTY MOMENTS ON THE BEACH NO DOUBT TWO WHO ARE HAPPY TO HAVE THE COMPETITION FROM MICHAEL ARE WOODY ALLEN AND HEIDI FLEISS 9308270168 930827 WHO'S NEWS MINERALS TECHNOLOGIES INC MINERALS TECHNOLOGIES INC NEW YORK STEVEN J GOLUB A GENERAL PARTNER OF INVESTMENT BANKING FIRM LAZARD FRERES & CO WAS ELECTED A DIRECTOR OF THIS SPECIALTY MINERALS AND MINERAL PRODUCTS COMPANY INCREASING THE BOARD TO SIX 9308270167 930827 NEW ZEALAND REFINING ADDS BONUS DIVIDEND RAISES INTERIM PAYOUT SPECIAL TO THE WALL STREET JOURNAL WELLINGTON NEW ZEALAND NEW ZEALAND REFINING CO SAID IT WILL PAY A SPECIAL DIVIDEND OF SIX NEW ZEALAND DOLLARS US333 A SHARE IN ADDITION TO AN INCREASED INTERIM DIVIDEND OF 65 NZ CENTS A SHARE FOR ITS FISCAL FIRST HALF ENDED JUNE 30 JIM CHAMPION CHAIRMAN OF NEW ZEALAND REFINING SAID A SPECIAL DIVIDEND IS CONSIDERED PRUDENT BECAUSE OF THE COMPANY'S STRONG CASH POSITION THE FIRSTHALF DIVIDEND IS UP 30 ON A 50 NZ CENT INTERIM DIVIDEND THE COMPANY PAID A YEAR EARLIER THE OIL REFINERY COMPANY SAID ITS OPERATING PROFIT AFTER TAXES ROSE 14 TO NZ278 MILLION US154 MILLION IN ITS FISCAL FIRST HALF THE INCREASED PROFIT WAS MAINLY DUE TO A 12 RISE IN THE COMPANY'S SALES TO NZ1334 MILLION AS OF JUNE 30 THE COMPANY HAD CURRENT ASSETS AND INVESTMENTS OF NZ3176 MILLION COMPARED WITH TOTAL LIABILITIES OF NZ2444 MILLION MR CHAMPION SAID THE COMPANY IS LIKELY TO PAY A FURTHER SPECIAL DIVIDEND OF NZ150 A SHARE IN APRIL 1994 NEW ZEALAND REFINING IS 23OWNED BY BP/EUROPA A UNIT OF BRITISH PETROLEUM PLC 19 BY MOBIL OIL NEW ZEALAND LTD A UNIT OF MOBIL CORP 17 BY SHELL NEW ZEALAND LTD A UNIT OF ROYAL DUTCH/SHELL GROUP AND 13 BY PETROCORP LTD A UNIT OF NEW ZEALAND FORESTRY AND RESOURCES CONCERN FLETCHER CHALLENGE LTD 9308270166 930827 WHO'S NEWS VIGORO CORP VIGORO CORP CHICAGO THIS FERTILIZER CONCERN ELECTED TWO DIRECTORS EXPANDING THE BOARD'S SIZE TO 10 THE NEW BOARD MEMBERS ARE ROD DAMMEYER CHIEF EXECUTIVE OF ITEL CORP AND ROBERT E FOWLER PRESIDENT AND CHIEF OPERATING OFFICER OF VIGORO 9308270165 930827 BANK PREDICTS OUTLAYS BY JAPANESE CONCERNS WILL CONTINUE TO FALL SPECIAL TO THE WALL STREET JOURNAL TOKYO SPENDING ON NEW PLANT AND EQUIPMENT BY JAPANESE CORPORATIONS WILL CONTINUE TO FALL DURING THE COMING FISCAL YEAR A MAJOR JAPANESE BANK PREDICTED A REPORT BY THE LONG TERM CREDIT BANK OF JAPAN LTD SAID ITS SURVEY OF 1660 COMPANIES SHOWED CAPITAL OUTLAYS ARE LIKELY TO DROP 26 IN THE YEAR THROUGH MARCH 1994 AND FALL AN ADDITIONAL 12 IN THE FOLLOWING YEAR THE REPORT SHOWED MANUFACTURERS AIMING TO CUT THEIR OUTLAYS BY NEARLY 12 IN THE CURRENT YEAR THE WORST RESULT SINCE THE BANK BEGAN ITS SURVEY IN 1970 IT SHOWED OUTLAYS BY NONMANUFACTURERS RISING 16 BUT DROPPING 29 IF SPENDING BY ELECTRICPOWER COMPANIES IS EXCLUDED THE CONTINUED WEAKNESS OF CONSUMER DEMAND IN JAPAN COUPLED WITH THE LOWEST LEVEL OF PROFITABILITY SINCE THE FIRST OIL SHOCK IN 1974 PROMPTED COMPANIES ANSWERING THE JULY SURVEY TO REVISE DOWNWARD THEIR CAPITAL SPENDING PLANS FROM THE PREVIOUS SURVEY IN FEBRUARY LONG TERM CREDIT BANK SAID THE WEAK OUTLOOK FOR CAPITAL SPENDING BODES ILL FOR THE CHANCES OF A HEALTHY RECOVERY OF THE JAPANESE ECONOMY SINCE OUTLAYS FOR NEW PLANTS AND EQUIPMENT ACCOUNT FOR ROUGHLY 20 OF GROSS NATIONAL PRODUCT THE GOVERNMENT AND THE BANK OF JAPAN MAINTAIN THAT A GRADUAL RECOVERY OF THE ECONOMY WILL BEGIN DURING THE SECOND HALF OF THE FISCAL YEAR BUT 60 OF THE COMPANIES RESPONDING SAID THEY WILL MAINTAIN A CAUTIOUS STANCE ON CAPITAL OUTLAYS EVEN IF THE ECONOMY RECOVERS 9308270164 930805 ON DEMJANJUK UNPRECEDENTED LAWLESSNESS BY ALAN M DERSHOWITZ IN DECEMBER 1991 CHIEF JUDGE GILBERT MERRITT OF THE US COURT OF APPEALS FOR THE SIXTH CIRCUIT IN CINCINNATI READ A NEWSPAPER STORY ABOUT JOHN DEMJANJUK THUS BEGAN ONE OF THE MOST BIZARRE EPISODES IN AMERICAN JUDICIAL HISTORY CULMINATING ON TUESDAY WITH JUDGE MERRITT'S HIGHLY QUESTIONABLE ORDER TO BRING MR DEMJANJUK BACK TO THE US FROM ISRAEL TO WHICH HE WAS EXTRADITED IN 1986 MR DEMJANJUK A CLEVELAND AUTO WORKER WAS SENTENCED TO DEATH BY AN ISRAELI COURT IN 1988 FOR NAZI WAR CRIMES ON THE BASIS OF EYEWITNESS TESTIMONY THAT HE WAS IVAN THE TERRIBLE OF TREBLINKA WHO ASSISTED IN THE MURDER OF THOUSANDS OF JEWS THE NEWSPAPER STORY DISCLOSED THAT NEW EVIDENCE HAD BEEN SUBMITTED TO THE ISRAELI SUPREME COURT WHICH WAS THEN CONSIDERING HIS APPEAL SUGGESTING THAT ANOTHER MAN NAMED IVAN MARCHENKO HAD BEEN IDENTIFIED AS IVAN THE TERRIBLE OF TREBLINKA IN AFFIDAVITS OBTAINED BY STALINIST INTERROGATORS FROM OTHER TREBLINKA GUARDS SHORTLY AFTER THE END OF WORLD WAR II NONE OF THESE GUARDS WAS STILL ALIVE BUT THEIR AFFIDAVITS WHICH HAD BEEN SECRETED IN SOVIET ARCHIVES WERE RELEASED SEVERAL YEARS AFTER MR DEMJANJUK'S CONVICTION BASED ON THIS NEWLY DISCLOSED HEARSAY EVIDENCE AN ISRAELI APPEALS COURT OVERTURNED HIS CONVICTION LATE LAST MONTH JUDGE MERRITT WHO HAD PRESIDED OVER THE APPELLATE TRIBUNAL THAT AFFIRMED MR DEMJANJUK'S EXTRADITION WAS TROUBLED BY AN ALLEGATION REPORTEDLY MADE BY ONE OF MR DEMJANJUK'S LAWYERS THAT THE JUSTICE DEPARTMENT WAS AWARE OF THESE AFFIDAVITS EVEN BEFORE MR DEMJANJUK'S EXTRADITION MR DEMJANJUK IS NOT A PARTICULARLY SYMPATHETIC DEFENDANT THERE IS POWERFUL EVIDENCE THAT HE VOLUNTEERED TO BECOME AN EXTERMINATION CAMP GUARD TRAINED BY THE SS AT TRAWNIKI AND ASSIGNED TO THE DEATH CAMP AT SOBIBOR HE ADMITTEDLY LIED ABOUT WHERE HE WAS AND WHAT HE DID DURING THE WAR YEARS IN ORDER TO OBTAIN US CITIZENSHIP IF HE WAS NOT IVAN THE TERRIBLE OF TREBLINKA HE WAS SURELY ANOTHER PRETTY TERRIBLE IVAN WHO PARTICIPATED IN THE SLAUGHTER OF JEWISH MEN WOMEN AND CHILDREN BUT INSTEAD OF WAITING FOR MR DEMJANJUK'S LAWYERS TO FILE A MOTION BEFORE AN APPROPRIATE COURT JUDGE MERRITT IN 1992 DECIDED TO TAKE THE LAW INTO HIS OWN HANDS FIRST HE HAD THE CLERK OF COURT WRITE A LETTER TO THE JUSTICE DEPARTMENT EXPRESSING JUDGE MERRITT'S INTEREST IN AN INVESTIGATION OF THE MATTER WHICH ACCORDING TO PRESS REPORTS THE JUSTICE DEPARTMENT WAS CONDUCTING JUDGE MERRITT THEN READ AN ARTICLE IN VANITY FAIR MAGAZINE AND ON THAT BASIS FILED HIS OWN MOTION TO REOPEN THE CASE CONVENED A PANEL OF THE COURT OVER WHICH HE PRESIDED AND GRANTED HIS OWN MOTION WITHOUT THE HELP OF THE ADVERSARY PROCESS HE THEN RESTORED THE DEMJANJUK EXTRADITION TO THE APPELLATE COURT'S DOCKET ORDERED BRIEFS TO BE FILED AND APPOINTED A PUBLIC DEFENDER TO REPRESENT MR DEMJANJUK EVEN THOUGH MR DEMJANJUK HAD HALF A DOZEN LAWYERS REPRESENTING HIM AND A SUBSTANTIAL DEFENSE FUND AS UNPRECEDENTED AND OVERREACHING AS THESE ACTIONS WERE THEY WERE NOTHING COMPARED TO WHAT JUDGE MERRITT THEN DID SINCE THE ORIGINAL EXTRADITION CASE HAD BEEN HEARD BY A FEDERAL DISTRICT COURT JUDGE NAMED FRANK BATTISTI THE USUAL COURSE WOULD BE FOR AN APPELLATE COURT TO REMAND THE CASE TO THAT JUDGE FOR FURTHER PROCEEDINGS INSTEAD JUDGE MERRITT WITHOUT ANY PLAUSIBLE AUTHORITY IN THE LAW TOOK THE CASE AWAY FROM JUDGE BATTISTI AND ASSIGNED ANOTHER DISTRICT COURT JUDGE TO CONDUCT A FULL INVESTIGATION OF POSSIBLE JUSTICE DEPARTMENT FRAUD THAT JUDGE FOUND NO SUCH FRAUD AND RECOMMENDED CLOSING THE CASE AND LEAVING MR DEMJANJUK'S EXCLUSION INTACT BECAUSE HE HAD LIED ON HIS VISA APPLICATION NOT SATISFIED WITH THAT CONCLUSION THE MERRITT PANEL HAS NOW SCHEDULED ITS OWN THOROUGH REVIEW OF THE CASE IT IS IN CONNECTION WITH THIS REVIEW THAT THE PANEL ORDERED MR DEMJANJUK TO BE RETURNED TO THE US DESPITE AN UNAMBIGUOUS LAW DENYING HIM THE RIGHT TO RETURN BECAUSE HE DELIBERATELY LIED ON HIS VISA APPLICATION THE MERRITT PANEL GAVE SEVERAL REASONS FOR ITS HIGHHANDED DECISION ISSUED AFTER 10 MINUTES OF DELIBERATION IT RULED THAT COURTS ALWAYS HAVE THE POWER TO REQUIRE A PARTY TO THE LITIGATION TO APPEAR BEFORE THEM THAT IS FLATOUT WRONG AT LEAST INSOFAR AS LITIGANTS WHO ARE OUT OF THE COUNTRY ARE CONCERNED FOR EXAMPLE WHEN KURT WALDHEIM WAS SEEKING TO HAVE HIS NAME REMOVED FROM THE WATCH LIST OF NAZI COLLABORATORS HE COULD LAWFULLY HAVE BEEN REQUIRED TO LITIGATE THAT ISSUE FROM OUTSIDE THE COUNTRY WITH THE HELP OF AMERICAN LAWYERS SINCE NO LITIGANT HAS THE RIGHT TO BE PRESENT AT AN IMMIGRATION HEARING IF THE MERRITT PANEL'S VIEWS WERE TO BECOME THE LAW THEN EVERY HAITIAN OR CHINESE BOAT PERSON COULD SIMPLY HAVE AN AMERICAN LAWYER FILE A LAWSUIT HERE AND THEN SEEK ADMISSION IN AID OF THAT LAWSUIT THE COURT WAS ALSO DEAD WRONG IN CONCLUDING THAT ISRAEL CANNOT PROPERLY TRY MR DEMJANJUK FOR ANY CRIMES OTHER THAN BEING IVAN THE TERRIBLE OF TREBLINKA ISRAEL COULD OF COURSE TRY HIM FOR PERJURY COMMITTED DURING THE TRIAL IN WHICH HE DENIED HE WAS AT SOBIBOR AND TRAWNIKI SINCE MR DEMJANJUK'S PERJURY IS A NEW CRIME COMMITTED AFTER THE EXTRADITION ISRAEL IS FREE TO TRY HIM FOR THAT CRIME WITHOUT REGARD TO THE ORIGINAL TERMS OF THE EXTRADITION MOREOVER EVEN ON THE SOBIBOR CHARGES ISRAEL COULD SEEK A WAIVER FROM THE STATE DEPARTMENT OF THE RATHER TECHNICAL RULES OF SPECIALTY SUCH A WAIVER MIGHT WELL BE GRANTED SINCE THE CRIMES COMMITTED BY SS TRAINED GUARDS AT SOBIBOR WERE SIMILAR TO THOSE COMMITTED AT TREBLINKA NOR IS THERE ANY BASIS FOR THE PANEL'S JUDICIAL NOTICE THAT A SERIOUS THREAT EXISTS TO THE LIFE OF JOHN DEMJANJUK IN ISRAEL MR DEMJANJUK HAS BEEN WELL TREATED AND WELL PROTECTED BY THE ISRAELI PRISON AUTHORITIES MOREOVER ISRAEL HAD INTENDED TO SEND HIM TO UKRAINE NOT ALLOW HIM TO LIVE AMONG ITS POPULATION ONCE IT FREED HIM MR DEMJANJUK RECEIVED A FAIR TRIAL AND APPEAL IN ISRAEL FAIRER THAN HE WOULD HAVE GOTTEN IN MANY OF OUR OWN STATES WHERE NEWLY DISCOVERED HEARSAY EVIDENCE OF THE KIND CONSIDERED BY THE ISRAELI COURT TO CAST DOUBT ON HIS GUILT COULD NOT HAVE EVEN BEEN CONSIDERED JUDGE MERRITT'S SELFGENERATED ACTIONS ARE THE KIND OF JUDICIAL HYPERACTIVISM AND OVERREACHING ABOUT WHICH SO MANY AMERICANS ARE CONCERNED COURTS ARE SUPPOSED TO BE INSTITUTIONS OF LIMITED POWER OVER ACTUAL CASES AND CONTROVERSIES APPROPRIATELY BROUGHT BEFORE THEM BY THE PARTIES JOHN DEMJANJUK HAS RECEIVED ALL THE DUE PROCESS TO WHICH HE IS ENTITLED UNDER US LAW IF JUDGE MERRITT WHO WAS ON PRESIDENT CLINTON'S SHORT LIST FOR THE SUPREME COURT IS NOT TOO HAPPY WITH THE GOVERNMENT AS HE SAID DURING TUESDAY'S ARGUMENT THEN HE HAS THE SAME RIGHT AS EVERY OTHER CITIZEN TO PETITION FOR A REDRESS OF GRIEVANCES BUT IN HIS ROLE AS A FEDERAL JUDGE HE MUST REMAIN WITHIN THE LAW AND NOT DECIDE TO REOPEN CASES ON THE BASIS OF UNHAPPINESS GENERATED BY NEWSPAPER AND MAGAZINE ARTICLES MR DERSHOWITZ IS A PROFESSOR OF LAW AT HARVARD SEE RELATED LETTERS LETTERS TO THE EDITOR DEMJANJUK THE NOTSOTERRIBLE IVAN WSJ AUG 27 1993 9308050088 YY93 MM08 9308270163 930827 CHILEAN ECONOMY SHOWS GROWTH SANTIAGO CHILE THE CHILEAN ECONOMY GREW BY 74 IN THE FIRST HALF FROM A YEAR EARLIER THE CENTRAL BANK REPORTED A BANK OFFICIAL SAID THE STRONGEST SECTORS WERE CONSTRUCTION TRADE TRANSPORTS AND FINANCIAL SERVICES IN THAT ORDER THE NATION'S ECONOMY GREW 104 IN 1992 BUT THE GOVERNMENT HAS SAID IT WILL SLOW DOWN THIS YEAR FINANCE MINISTER ALEJANDRO FOXLEY LAST WEEK PREDICTED A GROWTH RATE OF ABOUT 6 FOR 1993 HE SAID THE AVERAGE ANNUAL GROWTH FOR THE PRESENT GOVERNMENT'S FOURYEAR TERM WHICH ENDS NEXT MARCH WILL BE AROUND 64 9308270162 930827 GLENFED IS TAKEN OUT OF INDEX NEW YORK GLENFED INC IS BEING TAKEN OUT OF THE SAVINGS & LOAN INDUSTRY GROUP OF THE DOW JONES EQUITY MARKET INDEX EFFECTIVE TODAY THE COMPANY HAS BEEN SEEKING TO REORGANIZE TO AVOID SEIZURE BY REGULATORS GLENFED INC REORGANIZED AS GLENDALE FEDERAL BANK IN AN ARTICLE FRIDAY IT WAS INCORRECTLY STATED THAT GLENFED WAS SEEKING REORGANIZATION 9308270161 930827 INTERNATIONAL WORLD ECONOMY IF NAFTA FAILS NEGATIVE REPERCUSSIONS COULD REACH FAR BEYOND NORTH AMERICA BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IF NAFTA FAILS WHAT WOULD BE THE FALLOUT TROUBLE FOR ALMOST EVERYONE THAT'S THE DOMINANT THOUGH NOT UNANIMOUS VIEW OF THOSE WHO ANALYZE THE BULKY NORTH AMERICAN FREE TRADE AGREEMENT INTENDED TO CREATE A MORE OPEN MARKET FOR COMMERCE AND INVESTMENT AMONG MEXICO CANADA AND THE US THE PACT'S WORRIED FRIENDS SAY REJECTION WOULD TELL THE WORLD AMERICA HAS TURNED PROTECTIONIST MAKING IT HARDER FOR PRESIDENT CLINTON TO CONDUCT ANY SERIOUS ECONOMIC FOREIGN POLICY THUS THE GLOBAL TRADE TREATY BEING DRAFTED UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE WHICH ALREADY HAS ENEMIES COULD BE AN EARLY CASUALTY NAFTA'S REJECTION ALSO COULD SLOW IF NOT REVERSE FREEMARKET REFORMS ACROSS LATIN AMERICA AND ABOVE ALL WOULD BE A DISASTER FOR MEXICO THE PACT'S BACKERS WARN THOUGH THE US AND CANADA WOULD SUFFER LESS AT FIRST REJECTION WOULD CAUSE BOTH TO LOSE TRADE AND INVESTMENT OPPORTUNITIES PLUS JOBS WHEN TROUBLED MEXICO CUTS IMPORTS NOT TRUE SAY NAFTA OPPONENTS THIS TRADE PACT IS A SPECIAL CASE WITH SPECIAL PROBLEMS AND IS ESSENTIALLY A DOMESTIC POLITICAL ISSUE THE GATT DEAL COULD STILL CLEAR CONGRESS ON ITS MERITS BECAUSE AT HEART AMERICA REMAINS PROTRADE THEY INSIST MOST OTHER BAD EFFECTS COULD BE AVOIDED THEY SAY AS THIS INDICATES THE ANALYSTS DISAGREE AS MUCH ABOUT THE IMPACT OF NAFTA'S FAILURE AS THEY DO ABOUT ITS APPROVAL BUT WHILE UNANIMITY IS RARE A MAJORITY BELIEVE MOST REPERCUSSIONS WOULD BE NEGATIVE FOR NORTH AMERICA AND THE WORLD BEYOND THESE INCLUDE MEXICO BOTH SIDES AGREE REJECTION WOULD HIT MEXICO THE HARDEST ITS ECONOMY NEEDS HEAVY FOREIGN BORROWING TO COVER AN OTHERWISE UNSUSTAINABLE PAYMENTS DEFICIT AND LENDERS GO ALONG LARGELY BECAUSE THEY EXPECT NAFTA TO FUEL GROWTH WITHOUT THE TRADE PACT THEY'D GET NERVOUS PERHAPS BRINGING RECESSION AND A MAJOR PESO DEVALUATION AMONG OTHER THINGS NAFTA FOES SAY DEVALUATION IS OVERDUE ANYWAY AND THAT MEXICO HAS NO CHOICE BUT TO CONTINUE REFORM POLICIES BUT SUPPORTERS FEAR FAILURE WOULD BRING A SHAKEOUT SO SEVERE THAT NATIONALISTIC ANTIGRINGO POLICIES MIGHT FOLLOW RESTORING OLDSTYLE TENSION TO A USMEXICAN RELATIONSHIP THAT HAS BECOME AMICABLE IN RECENT YEARS SOME ALSO BELIEVE POLITICAL DEMOCRATIZATION IN MEXICO WOULD SUFFER IT WOULD BE ONLY BAD NEWS FOR MEXICO SAYS BARRY BOSWORTH OF THE BROOKINGS INSTITUTION AN ECONOMIST WHO SUPPORTS NAFTA LATIN AMERICA MANY LATIN STATES HAVE CHOSEN FREEMARKET OUTWARDLOOKING ECONOMIC REFORMS ALONG MEXICAN LINES THIS IS PARTLY BECAUSE THE US HAS BEEN HARANGUING THEM TO SEEK TRADE NOT AID BUT IF THE PACT FAILS AND TRADE PROSPECTS DIM SAY NAFTA SUPPORTERS A REGIONAL BACKLASH COULD DERAIL THESE WORTHY PROGRAMS BECAUSE US OFFICIALS HAVE GIVEN SOME LATIN NATIONS HOPE THEY CAN JOIN NAFTA EVENTUALLY THEY WOULD FEEL BETRAYED ONE WORRIER IS AMBASSADOR PATRICIO SILVA OF CHILE HIS GOVERNMENT CONSIDERS EVENTUAL MEMBERSHIP VITAL TO ITS TRADEBASED FUTURE NAFTA'S PASSAGE WOULD BE AN EVENT INDICATING THE US REALLY IS READY TO OPEN ITS OWN MARKET HE SAYS WHILE REJECTION COULD BRING REVERSAL OR AT LEAST A SLOWDOWN OF THE REGION'S POLICY OF REFORM AND RESTRUCTURING NAFTA'S FOES SAY LATIN NATIONS SHOULD ADOPT REFORM POLICIES ON MERIT AND NOT BECAUSE THE US DANGLES TRADE CARROTS IF THESE POLICIES WORK THEN THEY SHOULD PURSUE THEM SAYS JEFF FAUX OF THE ECONOMIC POLICY INSTITUTE A LEADING CRITIC OF NAFTA THE US AND CANADA EXPERTS AGREE THE IMMEDIATE ECONOMIC IMPACT WOULD BE LIMITED FOES SAY REJECTION WOULD PREVENT JOBS FROM RUNNING TO LOWWAGE MEXICO AND REFOCUS ATTENTION ON INTERNAL PROBLEMS SUCH AS THE DECLINE OF REAL WAGES BUT NAFTA'S FRIENDS SAY POTENTIAL TRADE EXPANSION AND ECONOMIC GROWTH WOULD BE LOST WHILE CONTINUED PROTECTION WOULD DELAY INDUSTRY'S EFFORTS TO GAIN COMPETITIVENESS IN GLOBAL MARKETS THE WHITE HOUSE MANY SUPPORTERS SAY REJECTION COULD SET A FATAL PRECEDENT FOR OTHER TRADE DEALS AND DEAL A GRIEVOUS BLOW TO PRESIDENT CLINTON THEY ARGUE THAT HE CAN'T SELL ANY INTERNATIONAL ECONOMIC PLAN FROM A RECORD OF FAILURE THUS NEEDS A NAFTA VICTORY TO HAVE CREDIBILITY WHEN THE BROADER GATT AGREEMENT COMES ALONG PEOPLE ON THE OUTSIDE WOULD QUESTION THE US DEVOTION TO FREER TRADE IF NAFTA FALLS SAYS A CANADIAN OFFICIAL THAT WOULD BE VIEWED AS A SIGNAL THE US IS CLOSING UP AND NOT GOING TO BE OPEN TO THE WORLD 9308270160 930827 INTERNATIONAL HONG KONG HOTEL OCCUPANCY HONG KONG OCCUPANCY IN HONG KONG HOTELS JUMPED TO 85 OF CAPACITY IN JULY FROM 79 A YEAR EARLIER HOWEVER ACCORDING TO THE GOVERNMENTFUNDED HONG KONG TOURIST ASSOCIATION THE OCCUPANCY RATE DROPPED BELOW THE 87 RATE RECORDED IN BOTH MAY AND JUNE IN MARCH AND APRIL OCCUPANCY WAS AT 89 9308270159 930827 INTERNATIONAL EAST JAPAN RAILWAY OFFER IS CONSIDERED A SUCCESS SPECIAL TO THE WALL STREET JOURNAL TOKYO AN AUCTION OF 600000 SHARES OF EAST JAPAN RAILWAY CO KNOWN AS JR EAST WAS CONSIDERED A SUCCESS BY THE STOCK MARKET MARKET PARTICIPANTS WELCOMED THE AUCTION RESULTS AS A POSITIVE SIGN THAT THE JAPANESE MARKET IS READY TO RESUME ITS CAPITALRAISING FUNCTION AFTER BIG NEW ISSUES HAD BEEN VIRTUALLY ABANDONED BECAUSE OF THE PROLONGED SLUMP IN STOCK PRICES OVER THE PAST THREE YEARS JR EAST TOOK IN 22788 BILLION YEN 217 BILLION FOR AN AVERAGE PRICE OF 379806 YEN 3624 A SHARE THE JAPAN NATIONAL RAILWAYS SETTLEMENT CORP SAID ROBERT ROWLAND TRANSPORTATION SECTOR ANALYST FOR BARCLAY DE ZOETE WEDD SECURITIES CALLED THE AUCTION PRICING VERY FAVORABLE AND SAID THE SHARES HAVE THE POTENTIAL TO CLIMB TO 500000600000 YEN BY THE END OF THE YEAR IN MARCH FOLLOWING THURSDAY'S AUCTION AN ADDITIONAL 14 MILLION SHARES WILL BE SOLD THROUGH BROKERAGE HOUSES FROM OCT 26 MR ROWLAND PREDICTED THE LISTING PRICE FOR THOSE SHARES COULD STAND AT A 1015 PREMIUM OVER THE AUCTION PRICE 9308270158 930827 HEINEKEN RECALLS BOTTLES BECAUSE OF GLASS SPLINTERS SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM DUTCH BREWERY HEINEKEN NV SAID IT IS RECALLING THOUSANDS OF BEER BOTTLES IN EIGHT COUNTRIES BECAUSE THEY MAY CONTAIN GLASS SPLINTERS THE SPLINTERS WERE FOUND DURING A ROUTINE CHECK OF 10OUNCE BOTTLES IN THE BREWERY WE DON'T WANT TO TAKE ANY RISK A SPOKESMAN SAID ADDING THAT THE PROBLEM WAS THOUGHT TO BE THE RESULT OF AN UNKNOWN FAULT IN THE BOTTLING PROCESS THAT CAUSED THE NECK TO CHIP AN INVESTIGATION IS UNDER WAY THE EIGHT MARKETS AFFECTED BY THE RECALL ARE AUSTRIA BRITAIN FINLAND HONG KONG HUNGARY ISRAEL SWEDEN AND PRINCE EDWARD ISLAND IN CANADA THE SPOKESMAN SAID THE FAULT IS LIMITED TO HEINEKEN'S GREEN 33CENTILITER EXPORT BOTTLES IN THESE MARKETS HEINEKEN WILL TAKE BACK ALL THE BOTTLES EXPORTED TO THESE MARKETS IN THE LAST TWO WEEKS HE SAID IN THE MEANTIME CONSUMERS ARE STRONGLY ADVISED NOT TO DRINK FROM THE BOTTLES BECAUSE OF THE GLASS BITS THEY ARE VERY VERY SMALL PIECES YOU CAN HARDLY SEE THEM WITH THE EYE HE SAID 9308270157 930827 LEISURE & ARTS ON SPORTS A BUMPY BUT BOFFO RIDE ON THE COLORADO BY FREDERICK C KLEIN MOAB UTAH NICK AND I STEERED OUR INFLATABLE KAYAK STRAIGHT INTO THE RAPIDS JUST LIKE WE'D BEEN TOLD TO DO THE RIDE WAS BUMPY BUT EXHILARATING EVERYTHING WAS GOING FINE UNTIL NICK SITTING IN FRONT PLUNGED HIS PADDLE'S LEFT BLADE DEEP INTO THE RIVER AND HELD IT THERE THE BOAT TURNED SIDEWAYS INTO THE CURRENT JUST LIKE WE WERE TOLD NOT TO DO WAVES CRASHED OVER US DUNK CITY BECKONED BUT WE THRASHED AROUND A BIT RIGHTED OURSELVES AND EMERGED UNSCATHED ALBEIT DRIPPING WHY'D YOU DO THAT I INQUIRED OF HIS UNORTHODOX MANEUVER DO WHAT HE REPLIED WE RIVER RATS CALL THAT KIND OF RESPONSE WHITE WATER MADNESS NICK AND I ATTAINED RIVER RATHOOD WELL AT LEAST MOUSEHOOD LAST MONTH DURING A KAYAKINGRAFTING WEEKEND ABOVE AND THROUGH WESTWATER CANYON ON THE COLORADO RIVER BETWEEN GRAND JUNCTION COLO AND MOAB UTAH PART OF A COMPANY OF 30 WE COMMUNED WITH NATURE AND OUR FELLOW HUMANS SOAKED UP SOME RAYS AND FOR BRIEF PERIODS PLACED IN DOUBT OUR SAFETY AND SANITY IT'S THE SORT OF THING GUYS DO WHEN MIDDLE AGE THREATENS TO BECOME A MEMORY IT IS ACTUALLY THE SORT OF THING MANY PEOPLE DO ABOUT 15000 PEOPLE RUN THE WESTWATER RAPIDS ANNUALLY EITHER ON THEIR OWN OR MORE USUALLY AS PASSENGERS OF PROFESSIONAL GUIDES NAVIGABLE WHITE WATER CAN BE FOUND ELSEWHERE IN THIS LAND THE OOEE RIVER IN TENNESSEE THE GAULEY IN WEST VIRGINIA THE KENNEBEC IN MAINE AND THE ROGUE IN OREGON FOR EXAMPLE IF YOU HAVEN'T GOTTEN YOUR FEET WET YOU SHOULD MY COMPANION WAS FRIEND NICK FARINA WHOM YOU MAY RECALL IF YOU HAVE A GOOD MEMORY EIGHT YEARS AGO HE AND I FORMED AN ENTRY IN THE ANNUAL 19MILE DES PLAINES RIVER CANOE MARATHON NEAR OUR NATIVE CHICAGO WHICH I LATER DESCRIBED IN THESE PAGES UNACCUSTOMED TO SUCH EXERTIONS WE DIDN'T FINISH FIRST BUT WE DIDN'T FINISH LAST EITHER AND WE STILL COUNT THAT AMONG OUR ACHIEVEMENTS NICK A LARGE BEARDED FELLOW WHO LOOKS LIKE HE KNOWS WHAT HE'S DOING WHETHER HE DOES OR NOT IS AN ENTHUSIASTIC OUTDOORSMAN AT A RECENT MEETING I NOTED THAT OUR COMBINED AGES HAD ADVANCED FROM 89 AT THE TIME OF THE CANOE MARATHON TO A CURRENT 105 AND OPINED THAT IF WE DESIRED FURTHER JOINT ADVENTURES SOON MIGHT BE A GOOD TIME HE CONCURRED AND SUGGESTED WHITEWATER KAYAKING HE SAID HE'D DONE IT ONCE BEFORE AND IMMEDIATELY LAUNCHED INTO A DESCRIPTION OF THE ESKIMO ROLL THE MANEUVER USED TO RIGHT AN OVERTURNED KAYAK YOU TWIST YOUR BUTT ONE WAY AND YOUR PADDLE THE OTHER YOU HAVE TO DO IT FAST BECAUSE YOU'RE UPSIDE DOWN IN THE WATER SAID HE REALLY HE ADDED IT'S NOT HARD DO ESKIMOS WEAR EYEGLASSES I WONDERED IN SEARCH OF AN OUTFITTER WE TRACKED DOWN SHERI GRIFFITH EXPEDITIONS BASED HERE IN MOAB ITS 41YEAROLD PROPRIETOR A RIVER VET SAID SHE'D BE GLAD FOR US TO PADDLE ALONG WITH ONE OF HER REGULAR RAFTING RUNS WHEN SHE INQUIRED ABOUT OUR EXPERIENCE WITH THE VESSEL AND LEARNED IT WAS SLIM NICK'S AND NONE MINE SHE SAID IT'D BE BEST IF WE ROWED THE KAYAK THROUGH SOME RAPIDS AND HOPPED A GUIDED RAFT THROUGH THE REALLY TREACHEROUS ONES ON THE APPOINTED SATURDAY HOT AND CLEAR WE GATHERED AT THE RIVER'S EDGE NEAR GRAND JUNCTION BESIDES THE TANNED FITLOOKING SHERI AND FOUR OTHER GUIDES OUR GROUP INCLUDED VACATIONERS FROM GERMANY BELGIUM AND CANADA AND SIX ROBUST TEENAGE BOYS FROM BRAZIL ACCOMPANIED BY THE INFINITELY FORBEARING PARENTS OF THREE OF THEM THE BRAZILIANS AND A GUIDE WOULD PADDLE THEIR RAFT THE OTHERS WOULD RIDE FIXEDOAR MODELS ROWED BY THE GUIDES WE WERE INTRODUCED TO OUR KAYAK IT HAD POINTED ENDS ALL RIGHT BUT WAS MADE OF RUBBER AND HAD NO DECK LIKE THE ESKIMO VARIETY DOES IF THIS BABY ROLLED WE'D BE SWIMMING THE GUIDES CALLED THE THING A RUBBER DUCKY HARDLY A HEROIC APPELLATION SHERI POINTED OUT ITS ADVANTAGE IF YOU HIT A ROCK YOU'LL BOUNCE SAID SHE A FEW STROKES AND I WAS HANDLING THE TWOBLADED PADDLE NIFTILY BUT THE MIGHTY COLORADO RIVER IS A GOOD DEAL SWIFTER THAN THE SLUGGISH DES PLAINES AND HOLDING A COURSE TOOK A BIT OF DOING WE QUICKLY GOT THE HANG OF THAT THOUGH AND LEARNED TO GO WITH THE FLOW THERE WAS CHOPPY WATER HERE AND THERE AND WHILE THE STRETCHES LITTLE ALTERED THE COLORADO'S PREDOMINANT TAN COLOR THE KEY WORD IN WHITE WATER IS WHITE' NOTED GUIDE GRANT AMARAL SOME PATCHES DEFINITELY WERE FOAMY EMBOLDENED BY SUCCESS WE SOON WERE SEEKING THEM OUT THE SECOND DAY WE WERE TO RUN THE CANYON WHICH CUTS THROUGH 200FOOTHIGH BLACKGRANITE CLIFFS AND CONTAINS 11 COUNTABLE RAPIDS SHERI THOUGHT WE COULD HANDLE THE FIRST TWO BUT ADJUDGED THE OTHERS TO BE BEYOND OUR KEN IF WE'D INTENDED TO PROTEST THE NAMES OF SOME OF THOSEBIG HUMMER SKULL SOCKITTOMEWOULD HAVE CONVINCED WE HIT THE FIST SERIOUS RAPID WILD HORSE JUST PAST MIDDAY UNLIKE THE MODEST CHOP OF PREVIOUS STRETCHES THIS ONE HAD TWO AND THREEFOOT WAVES THAT WERE QUITE WHITE AND COMING FROM SEVERAL DIRECTIONS BUT EXCEPT FOR NICK'S GAFFE WE DID WELL THE SECOND ONE LITTLE DOLORES RAPID WAS LONGER AND TOUGHER WE DIDN'T SO MUCH BOUNCE THROUGH IT AS BUCKTHIS MUST BE WHAT BRONCO RIDING IS LIKE I THOUGHTAND LARGE ROCKS STREWN IRREGULARLY ADDED TO THE CHALLENGE OUR GUIDES ASSURED US THE RUN RATED A SOLID FOUR ON A 1TO10 SCALE WELL WORTHY OF RESPECT WE FELT WE'D NOT ONLY SURVIVED BUT CONQUERED WE THEN BOARDED A RAFT AND WENT THROUGH THE REMAINING RAPIDS AS PASSENGERS OUR PARTICIPATION LIMITED TO BAILING I THOUGHT THAT PART OF THE TRIP RATED MAYBE A SIX FOR THRILLS BUT A 10 FOR SPECTACLE THE SCENERY IN FACT WAS GORGEOUS THROUGHOUT ALL IT LACKED WAS JOHN WAYNE STANDING ATOP A BLUFF SCANNING THE HORIZON FOR APACHES THERE WERE OTHER THINGS TO RECOMMEND THE JOURNEY THE STAR SHOW SATURDAY NIGHT SEEN FROM OUR SANDBEACH CAMP WAS UNRIVALED I LEARNED THAT COTTAGE CHEESE HORSERADISH AND CHIVE MAKE A GREAT DIP ONE OF THE GUIDES SHOWED ME HOW TO SCORE A BEER CAN DIAGONALLY WITH MY THUMB SO I COULD CRUSH IT WITHOUT GASHING MY HANDS I CAME OUT SMILING AS DID NICK ONE THING HE SAID WHEN YOU WRITE THIS WILL YOU TELL ABOUT YOUR GOOFS AS WELL AS MINE IN MY STORY I REPLIED I'M THE HERO 9308270156 930827 INTERNATIONAL SCANDINAVIAN GROUP IS SURPRISE WINNER IN BIDDING FOR HUNGARIAN PHONE SYSTEM BY ERNEST BECK SPECIAL TO THE WALL STREET JOURNAL BUDAPEST THE BIDDING FOR THE RIGHT TO BUILD HUNGARY'S DIGITAL MOBILE TELEPHONE NETWORK ENDED WITH A SURPRISE VICTORY FOR A SCANDINAVIAN CONSORTIUM OVER THE FRONTRUNNER A GROUP INCLUDING DEUTSCHE BUNDESPOST TELEKOM BRITISH TELECOMMUNICATIONS PLC AND FRANCE TELECOM THE HUNGARIAN MINISTRY FOR COMMUNICATIONS SAID THAT ONE OF TWO 15YEAR CONCESSIONS FOR THE DIGITAL NETWORK WENT TO PANNONGSM A NORDIC CONSORTIUM THAT INCLUDES PTT NEDERLANDS AS WELL AS THE STATE TELECOMMUNICATIONS COMPANIES OF DENMARK SWEDEN FINLAND AND NORWAY THE SECOND CONCESSION WENT TO THE JOINT VENTURE OF U S WEST INTERNATIONAL AND MATAV THE HUNGARIAN TELEPHONE COMPANY THE JOINT VENTURE KNOWN AS WESTEL 900 CURRENTLY HOLDS THE MONOPOLY RIGHTS IN HUNGARY FOR ANALOG MOBILE PHONE SERVICE U S WEST INTERNATIONAL IS A UNIT OF U S WEST INC THERE WAS UNUSUALLY WIDESPREAD INTERNATIONAL INTEREST IN THE BIDDING FOR THE SOCALLED GLOBAL SYSTEM FOR MOBILE COMMUNICATIONS OR GSM BECAUSE IT WAS THE FIRST OF ITS KIND TO BE PUT UP FOR GRABS IN CENTRAL EUROPE ALTHOUGH HUNGARY IS A RELATIVELY SMALL MARKET WITH ABOUT 500000 CUSTOMERS FORECAST OVER A 10YEAR PERIOD ANALYSTS SAY THAT GAINING A FOOTHOLD THERE COULD BE A SPRINGBOARD FOR FURTHER EXPANSION IN SLOVAKIA THE CZECH REPUBLIC AND IN POLAND WHERE GSM NETWORKS ARE BEING PLANNED THE PRICE FOR THE WINNING CONCESSIONS IS BELIEVED TO BE AROUND 50 MILLION FURTHER DEVELOPMENT AND INSTALLATION COSTS ARE PUT AT BETWEEN 100 MILLION AND 200 MILLION DEPENDING ON THE COST OF PRODUCING EQUIPMENT AND HOW QUICKLY THE SYSTEMS ARE INSTALLED THE GERMANBRITISHFRENCH CONSORTIUM CALLED DBFH WAS CLEARLY PERTURBED THAT IT WASN'T CHOSEN HINTING THAT IT MAY CONTEST THE AWARD IN ADDITION JOACHIM VORLAENDER A REPRESENTATIVE OF DBFH SAID THAT DEUTSCHE BUNDESPOST MAY RECONSIDER ITS PARTICIPATION IN THE COMING PRIVATIZATION OF THE HUNGARIAN TELEPHONE COMPANY IF WE ARE NOT WELL TREATED ALLEGING THAT THERE MAY HAVE BEEN ASPECTS OF UNFAIRNESS IN THE AWARDS PROCESS DBFH SAID THE FACT THAT THE DBFH CONSORTIUM HAS NOT GOTTEN THE GSM LICENSE MEANS THAT EITHER THE DECISION WAS NOT MADE ON THE BASIS OF THE BIDS AND OFFERED CONCESSION FEES OR THE BIDDING AND EVALUATION PROCESS HAS BEEN CHANGED WITHOUT INFORMING THE BIDDERS OR SOME BIDDERS HAVE BEEN ALLOWED TO CHANGE THEIR BID AND OFFER AFTER THE PUBLIC AUCTION GSM'S STANDARDIZED DIGITAL TECHNOLOGY REPRESENTS THE NEXT GENERATION OF MOBILE COMMUNICATIONS IT WILL ENABLE USERS TO USE THEIR PHONES FROM COUNTRY TO COUNTRY WHEREAS CURRENT ANALOG TECHNOLOGY DOES NOT 9308270154 930827 POTOMAC WATCH PAUL A GIGOT IS ON VACATION 9308270153 930827 MERCEDES AND BMW SET THEIR SIGHTS ON A NICHE IN THE SUBCOMPACT MARKET BY JOHN SCHMID SPECIAL TO THE WALL STREET JOURNAL FRANKFURT DAIMLERBENZ AG'S MERCEDESBENZ AG AND BAYERISCHE MOTOREN WERKE AG GERMANY'S BIGGEST LUXURY CAR MAKERS ARE PREPARING TO CARVE A NICHE IN THE ALREADY CROWDED SECTOR FOR SUBCOMPACT CARS BOTH CAR MAKERS WILL UNVEIL HATCHBACK PROTOTYPES AIMED AT THE TOP END OF THE SMALLCAR MARKET AT THE FRANKFURT INTERNATIONAL AUTOMOBILE SHOW SEPT 7 NEITHER COMPANY IS EXPECTED TO BEGIN PRODUCTION OF SUBCOMPACTS UNTIL 1996 AND NEITHER WILL ABANDON EXISTING PRODUCT LINES EVEN SO INDUSTRY ANALYSTS SAY THE APPROACH IS SIGNIFICANT THE PLANS TO TARGET LESS AFFLUENT BUYERS DEMONSTRATE THE GERMAN AUTO INDUSTRY HAS RECOGNIZED A CRITICAL NEED TO ADAPT TO SHIFTING MARKET TASTES AND THAT BOTH MANUFACTURERS ARE PREPARED TO BE FLEXIBLE AND UNDOGMATIC AS THEY COMPETE BUT THERE ARE BIG RISKS IN ENTERING AN ALREADY CROWDED CORNER OF THE MARKET NOT THE LEAST OF WHICH IS THE IMPACT ON THE COMPANIES' BOTTOM LINES AND REPUTATIONS THE COMPETITION IS VERY STRONG IN THIS MARKET SEGMENT SAID KLAUSJUERGEN MELZNER ANALYST AT DB RESEARCH GMBH THE RESEARCH ARM OF DEUTSCHE BANK AG OTHERS HAVE BEEN AT IT FOR A LONG TIME AND HAVE BEEN INNOVATING REGULARLY TO JUSTIFY A MOVE INTO THE LOWPROFITMARGIN SMALLCAR MARKET MERCEDES AND BMW WILL NEED HIGH VOLUMES THE LONDON ANALYST SAID WHAT WILL THAT DO TO THE IMAGE WHAT WILL YOU DO TO THE VALUE OF THE BRAND HE SAID THE COMPANIES WHICH ARE ACCUSTOMED TO CHARGING HIGH STICKER PRICES TO COVER STEEP PRODUCTION COSTS FACE A MAJOR CHALLENGE EACH MUST SLASH COSTS SOME 30 TO PRODUCE A PROFITABLE LINE OF SMALL CARS HOWEVER BIGCAR SALES ARE FALLING SHARPLY IN EUROPE'S RECESSION IN MAY REGISTRATIONS OF NEW MERCEDES CARS FELL BY 6899 VEHICLES OR 30 TO 15966 FROM A YEAR EARLIER PROFITS HAVE COME UNDER HEAVY PRESSURE BMW'S NET INCOME DROPPED 39 IN THE FIRST HALF OF THE YEAR ON AN 88 DECLINE IN SALES EVEN WELLHEELED CONSUMERS NOWADAYS APPEAR TO WANT FUELEFFICIENT CARS UNIFICATION HAS DRIVEN GERMANY'S ALREADY HIGH FUEL TAXES HIGHER MAKING DRIVERS THERE MORE SENSITIVE TO GASOLINE EFFICIENCY ANALYSTS SAID THE MOVE IS PARTICULARLY IMPORTANT FOR MERCEDES WHICH WAS CRITICIZED LAST YEAR WHEN IT LAUNCHED ITS OPULENT SCLASS SEDANS CARS SO LARGE THAT THEY WERE DUBBED CATHEDRALS ON WHEELS ANALYSTS SAID IT SHOWED THE COMPANY WAS OUT OF TOUCH WITH CONSUMER TASTES THE COMPANY'S VISION A CAR REFLECTS THE STRATEGY OF CHAIRMAN HELMUT WERNER WHO BROUGHT A NEW PHILOSOPHY WHEN HE TOOK OVER HIS POST IN JANUARY MR WERNER WANTS TO DIVERSIFY THE KINDS OF CARS BUILT BY MERCEDES RECOGNIZING THAT CUSTOMERS NO LONGER CHOOSE ONLY BETWEEN BIG AND LITTLE CARS RATHER THEY WANT HYBRIDS SUCH AS MINIVANS AND UTILITY VEHICLES WITH THE VISION A WE ARE PRESENTING A CONCRETE EXAMPLE FOR A NEW GENERATION OF CARS IN A GROWING MARKET SEGMENT WITH MERCEDES POTENTIAL MR WERNER SAID CHRISTIAN DAU A SPOKESMAN AT MERCEDES' STUTTGART GERMANY HEADQUARTERS SAID THE COMPANY HAS DECIDED TO BRING VISION A INTO PRODUCTION BUT WON'T COMMENT ON OUTPUT OR POTENTIAL PRODUCTION SITES MERCEDES LIKELY WILL LOOK TO A LOWWAGE LOWCOST REGION SUCH AS SPAIN OR EASTERN EUROPE TO PRODUCE THE NEW VEHICLES MR MELZNER SAID THE COMPANY HAS SQUASHED SPECULATION THAT IT WILL BUILD THE NEW CAR IN THE US WHERE IT ALREADY PLANS TO BUILD A FOURWHEEL DRIVE UTILITY CAR MODELED AFTER CHRYSLER CORP'S JEEP IN MUNICH BMW HAS ENTERED INTO SERIOUS CONSIDERATIONS ABOUT BRINGING ITS E1 MODEL INTO PRODUCTION BUT FIRST WANTS TO GAUGE THE REACTION AT THE FRANKFURT AUTO SHOW SAID COMPANY SPOKESMAN RUDOLF PROBZT INDUSTRY OBSERVERS WIDELY EXPECT BMW TO GO ALONG IF MERCEDES DOES IT THEN SO WILL BMW MR MELZNER PREDICTED IT'S A MATTER OF COMPETITION BOTH COMPANIES SAID THEY WANT TO LURE A NEW CLASS OF CUSTOMER WITH THE VEHICLES BILLED AS CITY CARS LIGHTWEIGHT ALUMINUM WILL BE USED FOR GASOLINE EFFICIENCY IN LINE WITH BMW'S AND MERCEDES' TRADEMARKS PERFORMANCE AND ENGINEERING WILL BE EMPHASIZED AND THE CARS WILL LIKELY BE PRICED 10000 TO 30000 MARKS 5934 TO 17802 ABOVE MOST OTHERS IN THEIR CLASS SPECIAL VERSIONS THAT RUN ON RECHARGEABLE ELECTRIC MOTORS WILL BE OFFERED FOR SHORTHAUL DRIVING VOLKSWAGEN AG GERMANY'S BIGGEST CAR COMPANY LONG AGO ANNOUNCED PLANS TO BUILD A SUBCOMPACT CITY CAR CALLED THE CHICO ALSO PLANNED FOR 1996 BMW AND MERCEDES DON'T WANT TO LEAVE A SOLID GROWTH MARKET TO VW SAID HANS HARTMANN ANALYST AT DRESDNER INTERNATIONAL ADVISORS A UNIT OF DRESDNER BANK AG BUT AFTER DECADES OF CULTIVATING AN ELITE IMAGE THE TRADEMARK MERCEDES STAR AND THE BLUEWHITE BMW LOGO POTENTIALLY COULD BE TARNISHED BY THEIR APPEARANCE ON THE HOOD OF A STUBBY CITY CAR OBSERVERS SAID SO THE TWO COMPANIES PLAN TO CREATE A NICHE IN AN EXISTING MARKET THROUGH HIGHCLASS COMPACT CARS REFINING AND BROADENING A WELLENTRENCHED TREND SAID ACHIM DIEKMANN ANALYST AT THE GERMAN AUTOMOBILE ASSOCIATION THE NATION'S MAJOR TRADE GROUP VISION A AND E1 WILL OFFER ROOMIER INTERIORS THAN THEIR COMPETITION VISION A WHILE SHORTER THAN FIAT SPA'S SUBCOMPACT PANDA MODEL WILL HAVE JUST AS MUCH ROOM AS A MIDDLESIZED MERCEDES SEDAN MR DAU SAID FOR EXAMPLE MERCEDES HAS CREATED A DOUBLE FLOOR LEAVING MORE FORWARD SPACE FOR THE PASSENGERS THE COMPONENTS THAT TYPICALLY FIT UNDER THE FRONT HOOD WILL LIE UNDER THE 20CENTIMETERDEEP FALSE FLOOR THE BATTERY CATALYTIC CONVERTER ELECTRICAL SYSTEMS AIR CONDITIONING AND MUCH OF THE MOTOR AND TRANSMISSION 9308270152 930827 FINANCING BUSINESS LOEWEN GROUP INC LOEWEN GROUP INC VANCOUVER BRITISH COLUMBIA SAID AN UNDERWRITING GROUP AGREED TO PURCHASE 2750000 LOEWEN COMMON SHARES AT 28 CANADIAN DOLLARS US2130 EACH FOR RESALE TO THE PUBLIC LOEWEN A FUNERAL SERVICES CONCERN SAID 25 MILLION SHARES WILL COME FROM ITS TREASURY AND 250000 SHARES WILL BE SOLD BY RAYMOND LOEWEN PRESIDENT AND CHIEF EXECUTIVE MR LOEWEN'S STAKE WILL DROP TO 203 FROM 224 THE COMPANY SAID GROSS PROCEEDS OF C70 MILLION US534 MILLION WILL BE USED TO PAY DOWN ITS CREDIT FACILITY LOEWEN HAD 359 MILLION SHARES OUTSTANDING AS OF LAST MONTH THE STOCK GAINED 375 CENTS TO 2175 IN OVERTHECOUNTER TRADING 9308270151 930827 DAIMLERBENZ SETS PLAN TO EXPAND ASIA PRESENCE SPECIAL TO THE WALL STREET JOURNAL STUTTGART GERMANY DAIMLERBENZ AG ANNOUNCED A BUSINESS OFFENSIVE TO EXPAND ITS PRESENCE IN THE FAR EAST THE COMPANY'S MAIN PROJECTS ARE BASED IN CHINA WHICH IT WILL USE AS A SPRINGBOARD INTO ASIA DAIMLER SPOKESMAN MATTHIAS KLEINERT SAID THURSDAY AT THE OPENING OF AN ENVIRONMENTAL TECHNOLOGIES EXHIBITION IN HONG KONG ONE PROJECT WILL BE PRODUCTION OF TOURING BUSES AT TWO SITES IN CHINA MR KLEINERT SAID DAIMLER'S MERCEDESBENZ AG DIVISION IN MAY SIGNED A LETTER OF INTENT TO JOINTLY PRODUCE BUSES WITH THE BEIJING GROUP JING DA A SECOND PROJECT TO BUILD BUSES IN SHANGHAI WAS AGREED WITH THE SHANGHAI AUTOMOTIVE INDUSTRY CORP AND LEI SHING HONG LTD CHINA HAS A GROWING NEED FOR INFRASTRUCTURE AND HIGHTECHNOLOGY INVESTMENTS AND SERVICES MR KLEINERT SAID IN 1992 THE DAIMLER GROUP REPORTED TOTAL SALES OF 350 MILLION MARKS 2077 MILLION IN CHINA ABOUT 70 MORE THAN IN 1991 MERCEDES ALONE ACCOUNTED FOR 200 MILLION MARKS OF REVENUE IN CHINA ALL FOUR OF DAIMLER'S OPERATING DIVISIONS AIM TO EXPAND THEIR PRESENCE IN CHINA KOREA SINGAPORE TAIWAN AND JAPAN THE OFFICIAL SAID AEG AG DAIMLER'S ELECTRONICS DIVISION IS HEADING A GERMAN CONSORTIUM TO BUILD AN UNDERGROUND LIGHTRAIL SYSTEM IN SHANGHAI 9308270150 930827 S&P LOWERS KEMPER RATING ON DEBT STOCK BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL STANDARD & POOR'S CORP LOWERED ITS RATING ON KEMPER CORP'S 542 MILLION IN SENIOR DEBT AND PREFERRED STOCK CITING THE FINANCIAL SERVICES CONCERN'S CONTINUED TROUBLES WITH ITS REALESTATE PORTFOLIO AND BROKERAGE OPERATION THE RATING COMPANY MARKED DOWN KEMPER'S SENIOR DEBT TO TRIPLEB FROM TRIPLEBPLUS ITS PREFERRED WAS LOWERED TO DOUBLEBPLUS FROM TRIPLEB THE MOVE IS THE LATEST IN A SERIES OF MARKDOWNS THE SENIOR DEBT RATED DOUBLEA IN OCTOBER 1991 HAS SINCE BEEN REDUCED WITH THE LATEST DOWNGRADE IN MARCH 1993 TO TRIPLEBPLUS S&P NOTED YESTERDAY THAT KEMPER HAS HAD A CUMULATIVE 217 MILLION IN NET LOSSES OVER THE PAST 18 MONTHS DRIVEN PRIMARILY BY ITS LARGE REALESTATE PORTFOLIO S&P NOTED THAT KEMPER RESPONDED BY ESTABLISHING REALESTATE RESERVES AND WRITEDOWNS AND THAT THOSE LOSSES HAVE BEEN EXACERBATED BY KEMPER'S ATTEMPT IN THE EARLY 1980S TO GAIN A FOOTHOLD IN THE SECURITIES BROKERAGE INDUSTRY THE UNIT IT PUT TOGETHER S&P POINTED OUT HAS BEEN PLAGUED BY POOR RETURNS AS WELL AS SIGNIFICANT CHARGES RELATING TO LEGAL ACTIONS S&P ADDED THAT KEMPER IS AMONG THE NATION'S BIGGEST INVESTMENT MANAGEMENT COMPANIES WITH OVER 70 BILLION IN ASSETS UNDER MANAGEMENT THE ASSET MANAGEMENT OPERATION HAS GENERATED STEADY RETURNS AND HEALTHY PROFIT MARGINS S&P SAID ADDING THAT AS KEMPER FOCUSES MORE RESOURCES ON THE UNIT THE ASSETMANAGEMENT GROUP IS EXPECTED TO INCREASE MODERATELY IN THE MEDIUM TERM KEMPER HAS SHED ITS PROPERTY/CASUALTY AND REINSURANCE UNITS GIVING THE PARENT A LESS CAPITALINTENSIVE BUSINESS PROFILE S&P SAID THE RATING CONCERN CHARACTERIZED KEMPER'S DEBT LEVERAGE AS MODERATE KEMPER'S EARNINGS WILL LIKELY CONTINUE TO BE SUPPRESSED BY ASSET LOSSES AND POOR RESULTS AT THE SECURITIES BROKERAGE UNIT OVER THE SHORT TERM S&P SAID KEMPER'S CORE BUSINESSES WILL FACE DIFFICULTY IN ACHIEVING SIGNIFICANT GROWTH WITH LOW INTEREST RATES PINCHING ITS LIFEINSURANCE PRODUCTS AND INCREASING COMPETITION SQUEEZING THE ASSETMANAGEMENT AND BROKERAGE SEGMENTS KEMPER WHICH IS BASED IN LONG GROVE ILL SAID IT IS DISAPPOINTED WITH THE DOWNGRADE THE COMPANY POINTED TO ITS RECENT ISSUANCE OF 360 MILLION IN EQUITY CAPITAL ITS EXIT FROM THE REINSURANCE BUSINESS AND ITS PENDING EXIT FROM THE PROPERTYCASUALTY MARKET AS WELL AS THE CONTINUED STRENGTHENING OF THE CAPITAL POSITION OF OUR LIFE INSURANCE COMPANIES AND THE FORMATION OF A REALESTATE MASTER LIMITED PARTNERSHIP THOSE MOVES KEMPER SAID ALL DEMONSTRATE OUR FOCUS ON TAKING ACTIONS THAT IMPROVE CREDIT QUALITY 9308270149 930827 SUIT AGAINST TOYS R' US AND WALMART IS DISMISSED DALLAS A FEDERAL JUDGE DISMISSED A SUIT ACCUSING WALMART STORES INC AND TOYS R US INC OF DECEPTIVE TRADE PRACTICES BOTH COMPANIES DENIED ANY WRONGDOING AFTER THE PLAINTIFF MARC STANLEY A DALLAS ATTORNEY FILED SUIT SEVERAL MONTHS AGO ALLEGING THEY ROUTINELY SOLD AS NEW MERCHANDISE WHICH HAD BEEN RETURNED AND SOMETIMES DAMAGED JUDGE BAREFOOT SANDERS'S ORDER DIDN'T ADDRESS THE ALLEGATIONS DIRECTLY IN DISMISSING THE DECEPTIVE TRADE CLAIMS THE JUDGE NOTED THAT MR STANLEY HAD REJECTED WALMART'S OFFER OF A FULL REFUND FOR THE ITEMS HE HAD BOUGHT HIS EXPENSES AND ATTORNEY'S FEES AND THAT MR STANLEY HAD NEVER SOUGHT A REFUND AT TOYS R US WHICH HAD NOTIFIED HIM HE COULD HAVE A REFUND BY RETURNING THE ITEMS JUDGE SANDERS SUGGESTED MR STANLEY SHOULD HAVE TAKEN ADVANTAGE OF SUCH A SIMPLE OBVIOUS AND COMPLETE REMEDY INSTEAD OF FILING A SUIT IN DISMISSING FRAUD ALLEGATIONS THE JUDGE NOTED THAT BECAUSE MR STANLEY HAD SOUGHT OUT USED ITEMS IN ORDER TO FILE A TEST SUIT HE KNEW THEY WEREN'T NEW AND SO COULDN'T HAVE BEEN DEFRAUDED MR STANLEY'S ATTORNEY STEPHEN GARDNER SAID HE PLANS TO FILE A SIMILAR SUIT WITH DIFFERENT PLAINTIFFS DON SHINKLE A WALMART VICEPRESIDENT SAID THE JUDGE SAW THE SUIT FOR WHAT IT WAS AN ATTEMPT TO SEEK PUBLICITY A SPOKESWOMAN FOR TOYS R US SAID THE COMPANY WELCOMED THE RULING AND THAT IT DOESN'T SELL RETURNED OR DAMAGED MERCHANDISE AS NEW 9308270148 930827 MONEY FUND ASSETS CLIMBED 362 BILLION DURING LATEST WEEK WASHINGTON MONEY MARKET MUTUAL FUND ASSETS ROSE 362 BILLION TO 58435 BILLION FROM 58073 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 647 RETAIL MONEY MARKET MUTUAL FUNDS FELL BY 230 BILLION TO 38933 BILLION THE TRADE GROUP SAID ASSETS OF 406 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY FELL BY 228 BILLION TO 30618 BILLION ASSETS OF 241 RETAIL TAXEXEMPT FUNDS FELL BY 23 MILLION TO 8315 BILLION ASSETS OF THE 271 INSTITUTIONAL MONEY MARKET FUNDS ROSE BY 592 BILLION TO 19502 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 220 TAXABLE MONEY MARKET FUNDS ROSE BY 565 BILLION TO 17372 BILLION ASSETS OF 51 TAXEXEMPT FUNDS ROSE BY 2702 MILLION TO 2130 BILLION 9308270147 930827 US FINDS ITS TEST OF SECURITIES SALES CURBS VOLATILITY BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE TREASURY'S EXPERIMENT OF SINGLEPRICE AUCTIONS FOR GOVERNMENT SECURITIES HAS CUT MARKET VOLATILITY IN THE IMMEDIATE AFTERMATH OF THESE SOCALLED DUTCH AUCTIONS ACCORDING TO THE DEPARTMENT'S PRIVATESECTOR BORROWING ADVISORY PANEL THE TREASURY BORROWING ADVISORY COMMITTEE OF THE PUBLIC SECURITIES ASSOCIATION SAID THAT WHILE THE DUTCH AUCTION TEST HASN'T PROVIDED CLEAR EVIDENCE OF ANY SAVINGS TO THE TREASURY INTERESTINGLY IMMEDIATE POSTAUCTION VOLATILITY FOR SECURITIES SOLD IN SINGLEPRICE AUCTIONS APPEARS TO BE LESS THAN FOR THOSE SOLD IN MULTIPLEPRICE AUCTIONS THE APPARENT REASON FOR THIS LESSENING OF POSTAUCTION VOLATILITY MARKET PARTICIPANTS SAID IS THAT THE SINGLEPRICE TECHNIQUE SHARPLY REDUCES CHANCES THAT BIDDERS WILL BE SURPRISED BY WHAT THEY GET OR DON'T GET AT AUCTION UNDER THE TECHNIQUE ALL SUCCESSFUL BIDDERS GET BONDS AT THE SAME PRICE THE DUTCH AUCTION TEST WAS A BYPRODUCT OF THE SALOMON BROTHERS INC BOND SCANDAL SOME ACADEMIC ECONOMISTS AND GOVERNMENT OFFICIALS CONTEND IT WOULD MAKE MARKET COLLUSION MORE DIFFICULT ANOTHER BYPRODUCT OF THE SALOMON SCANDAL MARKET PARTICIPANTS SAY IS THAT PREAUCTION CONVERSATIONS BETWEEN DEALERS AND THEIR CUSTOMERS REGARDING BOND PRICES HAVE FALLEN OFF SHARPLY THE TREASURY SAID RECENTLY THAT IT WILL CONTINUE ITS EXPERIMENT OF SELLING TWOYEAR AND FIVEYEAR NOTES VIA THE SINGLEPRICE AUCTION TECHNIQUE FOR ANOTHER YEAR IT SAID RESULTS OF THE TEST STARTED LAST SEPTEMBER HAVE BEEN INCONCLUSIVE SO FAR AND THAT FURTHER TESTING IS NEEDED SOME MARKET PARTICIPANTS EXPECT THE DUTCH AUCTION TEST EVENTUALLY TO BE JUDGED A SUCCESS THE TREASURY'S BORROWING ADVISORY COMMITTEE SAID IN ITS REPORT TO TREASURY SECRETARY LLOYD BENTSEN THIS MONTH THAT THE SINGLEPRICE AUCTION TECHNIQUE HAS BEEN TESTED THUS FAR IN A MARKET ENVIRONMENT CHARACTERIZED BY LOW VOLATILITY AN ACCOMMODATIVE MONETARY POLICY A POSITIVELY SLOPED YIELD CURVE PROVIDING SUBSTANTIAL FINANCING MARGINS AND WIDESPREAD GLOBAL INVESTOR PARTICIPATION THE COMMITTEE ADDED THAT ADDITIONAL DATA PARTICULARLY IF GATHERED IN MORE ADVERSE AND VOLATILE CONDITIONS WOULD BE USEFUL IN ASSESSING SINGLEPRICE AUCTIONS THE PANEL SUGGESTED ELSEWHERE IN ITS REPORT THAT INFLATION HASN'T BEEN VANQUISHED AS SOME CONTEND IT SAID INFLATION REMAINS NEAR A STUBBORN 3 FLOOR AND THAT THE RISING COST OF MEDICAL SERVICES PUBLIC TRANSPORTATION AND COLLEGE TUITION COUPLED WITH FEDERAL STATE AND LOCAL TAX INCREASES ON GASOLINE CIGARETTES AND INCOME SEEM TO ENSURE LITTLE ADDITIONAL PROGRESS WILL BE MADE IN REDUCING INFLATION FURTHER 9308270146 930827 ENTERPRISE TRIBES USE LOANS TO SMALL BUSINESSES TO CREATE JOBS TRAINING AND CAPITAL HELP MICROENTERPRISES SPROUT ON RESERVATIONS BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL NEAR THE SITE OF THE WOUNDED KNEE INDIAN MASSACRE A CENTURY AGO CAROL PUCKETT IS BUILDING HER FUTURE SINCE APRIL SHE AND THREE EMPLOYEES HAVE BEEN SERVING ABOUT 6000 WORTH OF HAMBURGERS CHICKEN AND TACOS EACH MONTH TO CUSTOMERS AT THE KYLE CAFE A RESTAURANT SHE OWNS ON THE PINE RIDGE INDIAN RESERVATION IN KYLE SD ALTHOUGH SHE DRAWS LESS THAN 5 AN HOUR MS PUCKETT SAYS SHE IS WELL ON HER WAY TO PAYING OFF THE 18000 LOAN SHE TOOK OUT TO START THE CAFE AND SHE THINKS HER FUTURE IS BRIGHTER THAN THAT OF MANY OTHER NATIVE AMERICANS OVERALL THE NATION'S TWO MILLION INDIANS ARE STRUGGLING WITH AN UNEMPLOYMENT RATE OF 35 AND ANNUAL HOUSEHOLD INCOMES THAT USUALLY FALL BELOW 7000 ACCORDING TO THE FEDERAL GOVERNMENT'S BUREAU OF INDIAN AFFAIRS MS PUCKETT ISN'T ALONE CONFRONTED WITH GRINDING POVERTY THE NATION'S INDIAN TRIBES INCREASINGLY ARE EMBRACING SMALLBUSINESS DEVELOPMENT TO HELP SOLVE SOME OF THEIR PROBLEMS WHILE SOME TRIBES HAVE USED THIS APPROACH FOR YEARS GROWING NUMBERS INCLUDING MS PUCKETT'S ARE ADOPTING IT NATIVE AMERICANS AND DEVELOPMENT SPECIALISTS SAY THE TREND REPRESENTS A BREAK WITH PREVIOUS DEVELOPMENT EFFORTS IN THE PAST TOO MUCH EMPHASIS WAS PLACED ON BRINGING INDUSTRIES OR INDUSTRIAL PARKS ONTO THE INDIAN RESERVATIONS FROM THE OUTSIDE SAYS SHERRY SALWAY BLACK VICE PRESIDENT OF FIRST NATIONS DEVELOPMENT INSTITUTE A NONPROFIT INDIAN DEVELOPMENT GROUP BASED IN FALMOUTH VA THE INSTITUTE SUPPORTS SMALLSCALE CULTURALLY APPROPRIATE DEVELOPMENT THAT IS SUSTAINABLE ON THE RESERVATION TO BE SURE SOME BUSINESSES OWNED BY OUTSIDERS SUCH AS CASINOS HAVE BEEN WELCOMED ON RESERVATIONS AND MANY PEOPLE DON'T SEE SMALL HOMEGROWN BUSINESS AS A CUREALL PARTICULARLY FOR INDIANS LACKING WORK SKILLS AND LIVING ON RESERVATIONS DEVOID OF ADEQUATE ROADS BRIDGES AND OTHER INFRASTRUCTURE IT'S CERTAINLY A CREDIBLE WAY FOR DEVELOPMENT TO WORK BUT YOU CAN'T JUST MOVE SMALLBUSINESS PROGRAMS ONTO EVERY RESERVATION SAYS CRIS STAINBROOK SENIOR PROGRAM OFFICER WITH THE NORTHWEST AREA FOUNDATION A NONPROFIT DEVELOPMENT AGENCY IN ST PAUL MINN THEY HAVE TO BE ADAPTED TO THE RESERVATION'S NEEDS AND IN SOME CASES THEY JUST WON'T WORK NONETHELESS OTHERS SAY SUCCESSES SUCH AS MS PUCKETT'S ARE ENCOURAGING HER CAFE WAS STARTED WITH A LOAN FROM THE LAKOTA FUND ONE OF THE MOST PROMINENT SMALLBUSINESS PROGRAMS FOR NATIVE AMERICANS THE SIXYEAROLD LOAN PROGRAM IS BASED ON THE PINE RIDGE RESERVATION WHERE THE INFAMOUS WOUNDED KNEE ATTACK BY US TROOPS OCCURRED AND SERVES MEMBERS OF THE RESERVATION'S OGLALA SIOUX TRIBE THE FUND CAPITALIZED WITH FOUNDATION GRANTS HAS LENT ABOUT 428000 TO 200 INDIVIDUALS SINCE ITS INCEPTION IT IS AMONG ABOUT 40 FUNDS IN THE US MODELED AFTER THE GRAMEEN BANK OF BANGLADESH A PIONEER IN SMALLSCALE GROUP LENDING MOST LAKOTA LOANS HAVE GONE TO TINY INDIVIDUALLY OWNED COMPANIES OR MICROENTERPRISES SUCH AS HOMEBASED HANDICRAFTS BUSINESSES CARPENTRY AND TIREREPAIR SHOPS VIDEO STORES RESTAURANTS AND HAIR SALONS THIS IS A DEPARTURE FROM THE ARROWHEAD FISHHOOK AND MOCCASIN FACTORIES THAT ELSIE MEEKS THE LAKOTA FUND'S EXECUTIVE DIRECTOR SAYS WERE INTRODUCED ON THE RESERVATION IN THE PAST AND FAILED SHE SAYS POOR MANAGEMENT LOW PAY AND TRANSPORTATION PROBLEMS CONTRIBUTED TO THE FAILURES THE LAKOTA FUND HAS TWO LENDING PROGRAMS SMALLER LOANS WHICH AVERAGE ABOUT 550 AND CARRY AN INTEREST RATE OF 15 ARE GIVEN TO HOMEBASED BUSINESSES BORROWERS MUST TAKE A BRIEF BUSINESS TRAINING COURSE AND PARTICIPATE IN A FIVEMEMBER LENDING CIRCLE THAT SHARES RESPONSIBILITY FOR ENSURING THAT EACH MEMBER'S LOAN IS REPAID MS MEEKS SAYS THE DEFAULT RATE ON THESE LOANS HAS BEEN ABOUT 15 LARGER LOANS AVERAGING 4500 AND CARRYING AN INTEREST RATE OF 10 HAVE GONE TO BUSINESSES SUCH AS THE KYLE CAFE THE DEFAULT RATE ON THESE LOANS ALSO HAS BEEN ABOUT 15 MS MEEKS SAYS SHE WOULD PREFER DEFAULT RATES OF ABOUT 12 BUT THINKS THE HIGHER RATES ARE A NECESSARY PART OF EARLYSTAGE DEVELOPMENT THIS IS THE MOST CULTURALLY APPROPRIATE FORM OF DEVELOPMENT FOR US BECAUSE IT ALLOWS US TO WORK TOGETHER AS A COMMUNITY AND GIVES US THE FINANCIAL RESOURCES TO CARE FOR ONE ANOTHER SAYS MS MEEKS PEOPLE REALIZE THEY CAN'T DO EVERYTHING LIKE IT WAS ONE HUNDRED YEARS AGO THAT MESSAGE HAS REACHED OTHER RESERVATIONS ALTHOUGH RESISTANCE STILL IS ENCOUNTERED LAST YEAR THE TLINGIT AND HAIDA INDIAN TRIBES OF SOUTHEAST ALASKA ADOPTED A CIRCLE LENDING PROGRAM MODELED AFTER THAT OF THE LAKOTA FUND THE FIRST POTENTIAL BORROWERS RECENTLY BEGAN TRAINING TO RECEIVE LOANS BUT MANY TRIBAL MEMBERS HAVE BEEN HESITANT TO COME FORWARD WE'RE TRYING TO PROMOTE NATIVEOWNED MICROENTERPRISES SO WE CAN GET MONEY CIRCULATING WITHIN THE COMMUNITY SAYS DAWN DINWOODIE WHO MANAGES THE 110000 FUND WHICH IS CAPITALIZED BY A BANK CREDIT LINE AND FOUNDATION GRANTS BUT THE IDEA OF BEING COMMITTED TO A CIRCLE AND BEING COLLECTIVELY RESPONSIBLE FOR A LOAN IS NEW TO EVERYONE HERE IN MARCH THE NAVAJO NATION RESERVATION IN SHIPROCK NM BEGAN FUND RAISING TO ESTABLISH A CIRCLE LENDING PROGRAM THE TRIBE HAS RAISED ABOUT 12000 AND HAS A GOAL OF 700000 THE NAVAJOS SAY SUCH A FUND IS NEEDED BECAUSE MOST OF THEIR MEMBERS LACK THE COLLATERAL AND CREDIT HISTORY REQUIRED TO SECURE REGULAR BANK LOANS IT'S A SLEEPINGGIANT SITUATION SAYS LARRY EMERSON A CONSULTANT WORKING ON CAPITALIZING THE NAVAJO FUND SINCE NATIVE PEOPLE ARE IN TROUBLE ECONOMICALLY AND IT TAKES SO LONG TO TRAIN PEOPLE FOR FORMAL ECONOMIC DEVELOPMENT WORK WHY NOT TAP IN TO THE POTENTIAL OF THE INFORMAL SECTOR AT THE MICROENTERPRISE LEVEL ASSISTANCE WITH BASIC TRAINING OR FUNDING CAN HELP EXISTING TINY BUSINESSES MOVE INTO THE MAINSTREAM ECONOMY SMALLBUSINESS DEVELOPMENT ALSO IS GENERATING IMPORTANT SOCIAL BENEFITS AT THE MISSISSIPPI CHOCTAW RESERVATION NEAR PHILADELPHIA MISS THERE WERE VIRTUALLY NO JOBS 20 YEARS AGO TODAY THE TRIBE SAYS ITS MEMBERS COLLECTIVELY ARE THE LARGEST EMPLOYER IN ITS COUNTY THE INCREASED AFFLUENCE HAS ALLOWED THE CHOCTAWS TO SHARPLY IMPROVE EDUCATION AND HEALTHCARE SYSTEMS ON THE RESERVATION THE CHOCTAWS BEGAN SECURING BANK LOANS GUARANTEED BY THE BUREAU OF INDIAN AFFAIRS IN 1979 THESE HAVE FINANCED A GROWING NUMBER OF BUSINESSES IN ELECTRONICS AUTOMOTIVE WIRING TELEPHONE ASSEMBLY PRINTING CONSTRUCTION AND RETAILING OVER THE LAST DECADE THE TRIBE SAYS THOSE BUSINESSES NOW EMPLOY 1700 WORKERS AND GENERATE MORE THAN 60 MILLION IN ANNUAL SALES WE DECIDED THAT WE HAD TO MAKE SOME DRAMATIC CHANGES IN ORDER TO MAINTAIN OUR TRIBE SAYS CHIEF PHILLIP MARTIN A CHOCTAW LEADER AND WE DECIDED THE FIRST THING WE NEEDED WAS JOBS 9308270145 930827 MALAYSIAN INVESTOR FILES LAWSUIT AGAINST STANDARD CHARTERED KUALA LUMPUR MALAYSIA A PROMINENT MALAYSIAN BUSINESSMAN HAS FILED A 238 MILLION SINGAPORE DOLLAR US148 MILLION LAWSUIT AGAINST STANDARD CHARTERED BANK A UNIT OF STANDARD CHARTERED PLC LONDON ALLEGING THAT THE BANK AND OTHERS WRONGFULLY UNLAWFULLY AND MALICIOUSLY CONSPIRED TO STRIP HIM OF HIS PRIZED SINGAPORE ASSETS IN 1986 THE SUIT FILED IN SINGAPORE BY DATUK YAP YONG SEONG'S INVESTMENT COMPANY IN SINGAPORE ALLEGES THAT STANDARD CHARTERED AND ASSOCIATES CONSPIRED TO ACQUIRE A CONTROLLING STAKE IN SEALION HOTELS LTD A DEFUNCT SINGAPORE HOTEL COMPANY FROM DATUK YAP'S MONSIA INVESTMENTS PTE FOR A FRACTION OF ITS ACTUAL VALUE MONSIA ALLEGES THAT THE TRANSACTION WAS FORCED ON THE THENDEBTSTRAPPED MALAYSIAN BUSINESSMAN BY STANDARD CHARTERED HIS PRINCIPAL LENDER AT THE TIME MONSIA HAD PLEDGED ITS SEALION SHARES AS COLLATERAL WITH THE BANK WHICH THEN SOLD THE SHARES IN AN ATTEMPT TO RECOVER LOANS TO DATUK YAP THE MALAYSIAN BUSINESSMAN IS NOW CHIEF EXECUTIVE OF TWO PROFITABLE COMPANIES LISTED ON THE KUALA LUMPUR STOCK EXCHANGE MYCOM BHD AND OLYMPIA INDUSTRIES BHD STANDARD CHARTERED ISSUED A STATEMENT ASSERTING THAT THE SUIT IS WITHOUT MERIT AND WHOLLY MISCONCEIVED THE BANK SAID IT IS CONTINUING TO PRESS LEGAL CLAIMS IN MALAYSIA AGAINST DATUK YAP THOSE CLAIMS STEM FROM STANDARD CHARTERED LOANS TO MONSIA AND OTHER YAPRELATED CONCERNS IN THE 1980S AND ARE MENTIONED IN MONSIA'S COURT DOCUMENTS 9308270144 930827 TWO STEELMAKERS SEEK US DUTIES ON ITALIAN IMPORTS WASHINGTON TWO SPECIALTY STEELMAKERS AND THEIR WORKERS FILED A PETITION WITH THE INTERNATIONAL TRADE COMMISSION REQUESTING THAT THE US IMPOSE ANTIDUMPING DUTIES ON IMPORTS OF GRAINORIENTED ELECTRICAL STEEL FROM ITALY ALLEGHENY LUDLUM CORP PITTSBURGH AND ARMCO INC OF PARSIPPANY NJ ALONG WITH THE UNITED STEELWORKERS OF AMERICA AND INDEPENDENT ARMCO UNIONS FILED THE PETITION CHARGING THAT SUBSIDIZED STEEL WAS SOLD AT UNFAIR PRICES UNDERMINING THE US MARKET ALSO ALLEGHENY LUDLUM AND THE STEELWORKERS PETITIONED THE US GOVERNMENT TO ASSESS ANTIDUMPING DUTIES ON IMPORTS OF GRAINORIENTED ELECTRICAL STEEL FROM JAPAN ALLEGHENY LUDLUM AND ARMCO ARE THE SOLE DOMESTIC PRODUCERS OF GRAINORIENTED ELECTRICAL STEEL WHICH IS USED AS CORE MATERIAL IN HIGH EFFICIENCY ELECTRICAL DEVICES SUCH AS POWER TRANSFORMERS GRAINORIENTED REFERS TO THE MOLECULAR STRUCTURE OF THE STEEL AND ITS MAGNETIC CHARACTERISTICS 9308270143 930827 FOURWEEK MOVING AVERAGE OF JOBLESS BENEFITS FALLS WASHINGTON A TENTATIVE MEASURE OF THE JOB MARKET IS MAKING ITS BEST SHOWING IN NEARLY FOUR YEARS WHILE INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS ROSE THIS PAST WEEK THE FOURWEEK MOVING AVERAGE OF CLAIMS FELL 15750 TO 331500 ITS LOWEST LEVEL SINCE SEPTEMBER 1989 THE LABOR DEPARTMENT SAID THE AVERAGE WAS A REVISED 347250 IN THE PREVIOUS WEEK FOR LAST WEEK ALONE CLAIMS ROSE 8000 TO 332000 EVEN THOUGH ALL THE FIGURES ARE ADJUSTED FOR SEASONAL CHANGES THEY TEND TO BOUNCE AROUND FROM WEEK TO WEEK BECAUSE OF FACTORS THAT ARE SOMETIMES LOCALIZED AND SHORTLIVED FOR THAT REASON THE FOURWEEK AVERAGE IS CONSIDERED A BETTER INDICATION OF LABOR MARKET TRENDS IT'S FAR FROM DEFINITIVE HOWEVER FOR ONE THING NOT EVERYBODY IS COVERED BY THE UNEMPLOYMENT COMPENSATION PROGRAM IN THE WEEK ENDED AUG 14 2782000 PEOPLE WERE RECEIVING STATE UNEMPLOYMENT BENEFITS WHILE THE LATEST UNEMPLOYMENT REPORT SHOWED 88 MILLION PEOPLE OUT OF WORK OF THOSE COVERED BY UNEMPLOYMENT INSURANCE 26 WERE RECEIVING BENEFITS IN THE AUG 14 WEEK DOWN FROM 27 THE WEEK BEFORE THE JULY UNEMPLOYMENT RATE WAS 68 THE AUGUST REPORT COMES OUT A WEEK FROM TODAY 9308270142 930827 BUSINESS BRIEF GLENFED COMPLETING PARTS OF OVERHAUL TO BEGIN COMMONSTOCK RIGHTS OFFER GLENDALE CALIF GLENFED INC COMPLETED MAJOR ELEMENTS OF ITS RECAPITALIZATION AND THE THRIFT SAID IT EXPECTS TO RECEIVE A TOTAL OF 451 MILLION FROM THE ISSUANCE OF NEW STOCK GLENFED WHICH WAS FORCED TO SHORE UP ITS LOW CAPITAL LEVELS TO AVOID BEING SEIZED BY REGULATORS SAID THE STEPS COMPLETED YESTERDAY INCLUDED THE SALE OF 201 MILLION IN PREFERRED STOCK AND THE SALE OF 169 MILLION IN COMMONSTOCK RIGHTS THE COMPANY TODAY WILL BEGIN OFFERING AN ADDITIONAL 81 MILLION IN COMMONSTOCK RIGHTS GLENFED PREVIOUSLY SAID IT EXPECTED ITS PLAN TO RAISE A TOTAL OF 425 MILLION WITH ADEQUATE CAPITAL IN HAND GLENFED MANAGEMENT MUST NOW FOCUS ON TURNING CONSISTENT PROFITS AT THE THRIFT IF IT SUCCEEDS THE OVERHAUL COULD QUALIFY AS THE LARGEST NONGOVERNMENT RESCUE OF A FINANCIAL INSTITUTION THE ACHIEVEMENT WE ARE TAKING NOTE OF TODAY IS SUBSTANTIAL STEPHEN J TRAFTON CHAIRMAN AND CHIEF EXECUTIVE SAID IN A STATEMENT WHILE THE RECAPITALIZATION PLAN SPARES US TAXPAYERS THE COST OF A FEDERAL BAILOUT IT SLASHES THE STAKE OF EXISTING SHAREHOLDERS IN THE COMPANY HOLDERS OF GLENFED'S DEBENTURES COMMON STOCK AND PREFERRED STOCK WILL SEE THEIR STAKE IN THE COMPANY REDUCED TO 20 WHEN THE TRANSACTION IS COMPLETED GLENFED SAID UNDER THE PLAN INSTITUTIONAL INVESTORS AGREED TO BUY THE PREFERRED STOCK THE INITIAL 169 MILLION IN COMMONSTOCK RIGHTS AND WHATEVER AMOUNT OF THE 81 MILLION IN COMMONSTOCK RIGHTS THAT EXISTING SHAREHOLDERS CHOOSE NOT TO EXERCISE THESE INSTITUTIONAL INVESTORS WHOM GLENFED HADN'T NAMED BEFORE INCLUDE TIGER MANAGEMENT CORP BOSTON CO WELLINGTON MANAGEMENT WEST HIGHLAND CAPITAL MERRILL LYNCH GLOBAL ALLOCATION FUND INVESTMENT ADVISORS ARNHOLD & S BLEICHROEDER FURMAN SELZ LINDER FUND FIRST BOSTON SPECIAL SITUATIONS FUND CARL MARKS & CO THE AIRLIE GROUP MERRILL LYNCH PHOENIX FUND THE BASS MANAGEMENT TRUST THE SID R BASS MANAGEMENT TRUST LEE M BASS INC ETHOS CAPITAL MANAGEMENT PERRY PARTNERS SAC CAPITAL MANAGEMENT WEST BROADWAY PARTNERS AND THIRD AVENUE FUND 9308270141 930827 TECHNOLOGY FDA CALLS FOR NEW LABELS ON SOME ANTACID PRODUCTS WASHINGTON THE FOOD AND DRUG ADMINISTRATION IS REQUIRING LABEL CHANGES ON OVERTHECOUNTER ANTACIDS WARNING CONSUMERS TO SEEK MEDICAL ADVICE BEFORE TAKING THEM WITH PRESCRIPTION DRUGS THE AGENCY IS ALSO ORDERING LABEL CHANGES FOR SOME NONPRESCRIPTION LAXATIVES AND DIARRHEA MEDICINES AND PROPOSING NEW WARNINGS FOR OVERTHECOUNTER SLEEP AIDS AND DRUGS USED TO TREAT NAUSEA AND VOMITING NEW ANTACID LABELS WILL BE REQUIRED IN ONE YEAR CURRENTLY LABELS FOR ANTACIDS CONTAINING ALUMINUM CARRY LABELS WARNING CONSUMERS AGAINST TAKING THEM WHEN THEY ARE ALSO TAKING TETRACYCLINE A PRESCRIPTION ANTIBIOTIC BY MOUTH THE FDA CITED EVIDENCE SHOWING THAT ANTACIDS CONTAINING CALCIUM OR MAGNESIUM ALSO CAN INTERACT WITH SOME PRESCRIPTION DRUGS THE NEW WARNINGS ON LAXATIVE AND DIARRHEA MEDICATIONS APPLY TO DRUGS CONTAINING WATERSOLUBLE GUMS AS ACTIVE INGREDIENTS THEY WILL WARN CONSUMERS THAT TAKING THE PRODUCT WITHOUT ADEQUATE FLUID MAY MAKE THE MEDICATION SWELL AND MAY CAUSE CHOKING THE LABEL CHANGES WILL BE REQUIRED IN SIX MONTHS THE FDA PROPOSES THAT CONSUMERS BE WARNED AGAINST TAKING SLEEP AIDS AND NAUSEA DRUGS UNLESS DIRECTED TO DO SO BY A PHYSICIAN IF THEY HAVE BREATHING PROBLEMS GLAUCOMA OR DIFFICULTY IN URINATION DUE TO AN ENLARGED PROSTATE GLAND 9308270140 930827 INTERNATIONAL BRITISH AEROSPACE TAIWAN AEROSPACE MOVE CLOSER TO ACCORD ON JET VENTURE BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN AFTER FOUR DAYS OF TALKS BRITISH AEROSPACE PLC AND TAIWAN AEROSPACE CORP APPEARED CLOSER TO AN ACCORD ON FINANCING AND TECHNOLOGYTRANSFER ARRANGEMENTS FOR THEIR JOINT VENTURE TO PRODUCE MIDSIZE PASSENGER JETS OFFICIALS CLOSE TO THE TROUBLED NEGOTIATIONS SAID THE MAJOR OBSTACLES HAVE BEEN OVERCOME AND THAT THE TALKS ARE NOW FOCUSED ON IRONING OUT DETAILS I AM OPTIMISTIC ABOUT THE POSSIBLE RESULTS SAID YANG SHIHCHIEN VICE MINISTER FOR ECONOMIC AFFAIRS WHO IS RESPONSIBLE FOR OVERSEEING THE JOINT VENTURE THERE ARE STILL SOME GAPS ABOUT THE TERMS AND CONDITIONS ADDED ANOTHER OFFICIAL CLOSE TO THE TALKS IT DOES LOOK AS THOUGH WE ARE GETTING IT SUCH OPTIMISM IS A SIGNIFICANT SHIFT FROM THE BLEAK MOOD OF LESS THAN A WEEK AGO WHEN TAIWAN GOVERNMENT OFFICIALS FEARED THAT THE 400 MILLION JOINT VENTURE MIGHT COLLAPSE BECAUSE OF OBJECTIONS RAISED BY A TAIWAN GOVERNMENT BANK THE TWO SIDES SIGNED A CONTRACT IN JANUARY BUT FAILED TO REACH A DETAILED AGREEMENT ON SEVERAL OCCASIONS IN RECENT MONTHS CHIAO TUNG BANK A GOVERNMENT DEVELOPMENT BANK PUT THE BRAKES ON THE VENTURE LAST WEEK WHEN IT BALKED AT SPECIFIC TERMS OF THE FINANCING PACKAGE AND A LACK OF FIRM COMMITMENTS FROM BRITISH AEROSPACE OVER TECHNOLOGY TRANSFER THE JOINTVENTURE AGREEMENT IS BETWEEN BRITISH AEROSPACE AND TAIWAN AEROSPACE A 29GOVERNMENTOWNED COMPANY BUT THE NEGOTIATIONS THIS WEEK HAVE INVOLVED PRIMARILY THE BRITISH COMPANY'S EXECUTIVES AND OFFICIALS FROM CHIAO TUNG BANK CHIAO TUNG BANK RAISED CONCERNS ABOUT A 400 MILLION LOAN THAT IT WAS CHARGED WITH RAISING AS TAIWAN'S CONTRIBUTION TO THE FINANCING FOR AN AIRPLANELEASING COMPANY TO BE OPERATED BY THE 5050 VENTURE WHICH WILL BE CALLED AVRO INTERNATIONAL AEROSPACE LTD THE BANK WAS WORRIED THAT AS AN INVESTOR IN TAC ITS LOANS MIGHT VIOLATE TAIWAN BANKING LAW UNLESS THEY WERE PROPERLY SECURED SOURCES CLOSE TO THE TALKS SAID THAT ISSUE HAS BEEN SETTLED THOUGH THE SOLUTION HASN'T BEEN ANNOUNCED THE LOCAL MEDIA HAVE REPORTED THAT THE TAIWANESE AUTHORITIES AGREED TO PROVIDE GUARANTEES FOR THE FINANCING PACKAGE BUT VICE MINISTER YANG SAID GUARANTEES PROBABLY WON'T BE NECESSARY ON WEDNESDAY MR YANG TOLD REPORTERS THAT THE VENTURE MAY SEEK FUNDING FROM FOREIGN BANKS BUT FOREIGN BANKERS IN TAIWAN SAID THEY AREN'T AWARE OF ANY CONCRETE PROPOSALS ON THE MATTER MEANWHILE SOURCES SAID THE TECHNOLOGYTRANSFER ISSUE HAS BEEN CENTRAL TO THIS WEEK'S TALKS AND HAS PROVED AS IMPORTANT AN ISSUE TO CHIAO TUNG BANK AS THE QUESTION OF SECURING THE LOAN TAIWAN OFFICIALS HAVE BEEN CONCERNED THAT BRITISH AEROSPACE WAS UNWILLING TO MAKE SPECIFIC COMMITMENTS ON TECHNOLOGYTRANSFERS 9308270139 930827 INTERNATIONAL VOLVO PROFIT SURGED IN SECOND QUARTER RENAULT'S PLUNGED BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM AB VOLVO REPORTED A HUGE JUMP IN SECONDQUARTER PRETAX PROFIT AND A RETURN TO PROFIT FOR THE FIRST HALF FROM A YEAREARLIER LOSS THE IMPROVED RESULTS SHOULD HELP TO DISPEL ANY REMAINING FRENCH POLITICAL OBJECTIONS TO VOLVO'S LONGAWAITED MERGER WITH RENAULT SA VOLVO AND RENAULT REMAINED SILENT ABOUT RAMPANT STOCK MARKET SPECULATION SUGGESTING THEY ARE ABOUT TO MERGE TAKING AN AWKWARD THREEYEAR STRATEGIC ALLIANCE TO THE FULL CONSUMMATION AVIDLY DESIRED BY BOTH COMPANIES' MANAGEMENTS THE BIGGEST HURDLE TO SUCH A MERGER HAS BEEN RENAULT'S SENSITIVE STATUS AS A STATECONTROLLED CONCERN AND FEARS OF A POLITICAL BACKLASH IF VOLVO WERE ALLOWED TO WREST A DOMINANT STAKE IN ONE OF FRANCE'S INDUSTRIAL CROWN JEWELS INDUSTRY SOURCES SUGGEST THAT A FINAL MERGER PROPOSAL WITH RENAULT EMERGING WITH MAJORITY CONTROL COULD BE UNVEILED WITHIN TWO WEEKS IN THE SECOND QUARTER VOLVO ROBUSTLY TURNED AROUND TO POST PRETAX PROFIT OF 711 MILLION SWEDISH KRONOR 883 MILLION UP FROM 145 MILLION KRONOR A YEAR EARLIER THE LATEST PERIOD'S BLACK INK REVERSED THREE CONSECUTIVE QUARTERLY LOSSES AND SPARKED A REBOUND TO FIRSTHALF PRETAX PROFIT OF 380 MILLION KRONOR FROM A YEAREARLIER LOSS OF 103 MILLION KRONOR VOLVO'S FIRSTHALF REVENUE ROSE 18 TO 4881 BILLION KRONOR FROM 4138 BILLION KRONOR A YEAR EARLIER BY CONTRAST RENAULT'S PRETAX PROFIT PLUNGED 87 TO 730 MILLION FRENCH FRANCS 1247 MILLION IN THE FIRST HALF FROM 544 BILLION FRANCS THE PREVIOUS YEAR RENAULT BLAMED THE EARNINGS DECLINE TO LOWER SALES IN ANEMIC EUROPEAN CAR MARKETS RENAULT'S FIRSTHALF REVENUE SKIDDED 84 TO 8711 BILLION FRANCS FROM 9505 BILLION FRANCS A YEAR EARLIER THE FRENCH AUTO MAKER'S CAR SALES DURING THE FIRST HALF TUMBLED 19 TO 734000 VEHICLES FROM 904000 CARS A YEAR EARLIER THOUGH ITS EUROPEAN MARKET SHARE REMAINED UNCHANGED AT 11 FIRSTHALF PROFIT ALSO WAS ADVERSELY AFFECTED BY EXCHANGE RATE FLUCTUATIONS RENAULT SAID VOLVO STANDS TO REAP A CURRENCY WINDFALL FROM A WHOPPING 25 DEPRECIATION OF THE SWEDISH KRONA IN RECENT MONTHS BUT THOSE BENEFITS WILL ONLY MATERIALIZE GRADUALLY OVER THE NEXT 18 TO 24 MONTHS AS LONGTERM HEDGING CONTRACTS WIND DOWN VOLVO EXECUTIVES EMPHASIZED THAT THE FIRSTHALF RECOVERY CAME DESPITE LOWER SALES VOLUMES FOR BOTH CARS AND TRUCKSAND A CONTINUED BLEAK OUTLOOK IN IMPORTANT EUROPEAN MARKETS THE BIG DIFFERENCE WAS THE TOUGH AUSTERITY PROGRAM THAT HAS SLASHED ANNUAL COSTS BY FIVE BILLION KRONOR OR 6 SINCE 1990 VOLVO'S FLAGSHIP CAR DIVISION RETURNED TO PROFIT IN THE SECOND QUARTER FOR THE FIRST TIME SINCE THE AUTUMN OF 1990 IN LINE WITH COMPANY POLICY VOLVO DIDN'T DISCLOSE QUARTERLY OPERATING PROFIT FOR INDIVIDUAL DIVISIONS 9308270138 930827 NATIONAL MEDICAL FACILITIES RAIDED BY US AGENTS PROBE IS BEING COORDINATED BY CRIMINAL DIVISION OF JUSTICE DEPARTMENT BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL HUNDREDS OF FEDERAL AGENTS SWEPT THROUGH MORE THAN 20 NATIONAL MEDICAL ENTERPRISES INC FACILITIES NATIONWIDE IN A BROAD INVESTIGATION OF POSSIBLE CRIMINAL MISCONDUCT BY THE HOSPITAL OPERATOR THE PROBE ONE OF THE LARGEST EVER AGAINST A HOSPITAL COMPANY IS THE LATEST SIGN OF THE GOVERNMENT'S HEIGHTENED INTEREST IN HEALTHCARE FRAUD AND ABUSE NATIONAL MEDICAL HAD PREVIOUSLY DISCLOSED THAT VARIOUS GOVERNMENT AGENCIES IN TEXAS NEW JERSEY AND MISSOURI WERE INVESTIGATING SOME OF ITS PSYCHIATRIC FACILITIES BUT THE RAIDS YESTERDAY SHOWED FOR THE FIRST TIME THAT THE PROBE IS BEING COORDINATED BY THE FRAUD SECTION OF THE JUSTICE DEPARTMENT'S CRIMINAL DIVISION IN WASHINGTON MORE THAN 600 AGENTS FROM THE FEDERAL BUREAU OF INVESTIGATION AND OTHER US AGENCIES SERVED SEARCH WARRANTS FOR VARIOUS CATEGORIES OF RECORDS OR SERVED SUBPOENAS FOR RECORDS AT NATIONAL MEDICAL HOSPITALS AND OFFICES GOVERNMENT SOURCES SAID FORTY AGENTS WERE DISPATCHED TO NATIONAL MEDICAL'S HEADQUARTERS IN SANTA MONICA CALIF A LOCAL FBI SPOKESMAN SAID THE WIDENING GOVERNMENT PROBE COULD INCLUDE ALLEGATIONS THAT THE COMPANY PAID BOUNTY HUNTER FEES TO OBTAIN PSYCHIATRIC PATIENTS AND MISDIAGNOSED PATIENTS SO IT COULD INCREASE INSURANCE RECOVERIES ANALYSTS SAID LAST YEAR THE COMPANY SETTLED TEXAS STATE CHARGES THAT IT PAID KICKBACKS TO INDIVIDUALS FOR PATIENT REFERRALS NATIONAL MEDICAL ISSUED A STATEMENT SAYING IT WAS COOPERATING WITH THE GOVERNMENT'S INVESTIGATION EVEN THOUGH THE SEARCHES WERE DISRUPTIVE TO OUR BUSINESS OPERATIONS THE GOVERNMENT SHOWED SENSITIVITY TO THE WELLBEING OF OUR PATIENTS AND THE SEARCHES DID NOT INTERFERE WITH THEIR CARE SAID SCOTT BROWN NATIONAL MEDICAL'S ACTING GENERAL COUNSEL NATIONAL MEDICAL SAID SEARCHES WERE CONDUCTED AT NINE OF ITS 61 PSYCHIATRIC HOSPITALS AND SUBPOENAS WERE PRESENTED AT CERTAIN OTHER PSYCHIATRIC HOSPITALS IN ADDITION TO THE CORPORATE OFFICES THE SWEEP ALSO INVOLVED REGIONAL OFFICES IN DALLAS INDIANAPOLIS FAIRFAX VA AND TAMPA FLA NATIONAL MEDICAL SAID IT WASN'T AWARE OF ANY INVESTIGATIVE ACTIVITY AT ITS GENERAL HOSPITALS NATIONAL MEDICAL'S NEWLY INSTALLED CHIEF EXECUTIVE OFFICER JEFFREY BARBAKOW HAS CALLED RESOLUTION OF THE GOVERNMENT INQUIRY A TOP PRIORITY NATIONAL MEDICAL ALSO FACES LITIGATION IN WASHINGTON AND TEXAS FILED BY 19 INSURANCE COMPANIES THAT ARE SEEKING TO RECOVER HUNDREDS OF MILLIONS OF DOLLARS IN ALLEGEDLY FALSE PSYCHIATRIC CLAIMS GOVERNMENT OFFICIALS PRIVATELY COMPARED THE NATIONAL MEDICAL INVESTIGATION TO TWO OTHER BIG GOVERNMENT ACTIONS LAST YEAR NATIONAL HEALTH LABORATORIES INC ONE OF THE NATION'S LARGEST MEDICALLABORATORY CHAINS AGREED IN DECEMBER TO A 1114 MILLION SETTLEMENT IN THE BIGGEST MEDICAREFRAUD CASE EVER AND IN OPERATION GOLDPILL LAST SUMMER FEDERAL AGENTS ARRESTED MORE THAN 80 PHARMACISTS WHO ALLEGEDLY OVERCHARGED FOR GENERIC DRUGS AMONG OTHER THINGS OVER THE PAST 18 MONTHS THE JUSTICE DEPARTMENT'S CRIMINAL DIVISION HAS SET UP HEALTHCARE FRAUD TASK FORCES IN MORE THAN A DOZEN CITIES THE FBI AND JUSTICE DEPARTMENT EARLY LAST YEAR DESIGNATED THE CRACKDOWN ON HEALTHCARE FRAUD AS A TOP PRIORITY BESIDES THE FBI AGENCIES INVOLVED IN THE NATIONAL MEDICAL ENTERPRISES INVESTIGATION INCLUDE THE INSPECTOR GENERAL'S OFFICE OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES THE DEFENSE CRIMINAL INVESTIGATIVE SERVICE THE POSTAL INSPECTION SERVICE AND THE INTERNAL REVENUE SERVICE NEW YORK STOCK EXCHANGE TRADING IN NATIONAL MEDICAL SHARES WAS HALTED AT MIDDAY FOR NEWS OF THE RAIDS THE SHARES WERE QUOTED AT 11125 OFF 25 CENTS OR 22 BEFORE THE HALT AND DIDN'T RESUME TRADING 9308270137 930827 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 3 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 306 30 TO 44 DAYS 310 45 TO 89 DAYS 311 90 TO 149 DAYS 320 150 TO 179 DAYS 322 180 TO 239 DAYS 330 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 312 30 DAYS 314 60 DAYS 314 90 DAYS CERTIFICATES OF DEPOSIT 255 ONE MONTH 265 TWO MONTHS 270 THREE MONTHS 282 SIX MONTHS 294 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 305 ONE MONTH 309 THREE MONTHS 322 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 307 60 DAYS 308 90 DAYS 309 120 DAYS 318 150 DAYS 318 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 7/16 SIX MONTHS 3 9/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 656 JAPAN 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 23 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 302 13 WEEKS 312 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 657 60 DAYS 664 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 659 60 DAYS 669 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 9308270136 930827 MARKETING & MEDIA TURNER BROADCASTING NEAR PACT TO BUY 1500 MORE FILMS FOR GROWING LIBRARY BY ANITA SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA TURNER BROADCASTING SYSTEM INC IN WHAT MAY CAP A SUMMER OF MAJOR MOVIE DEALS FOR THE CABLE PROGRAMMER IS CLOSE TO SIGNING AGREEMENTS WITH AT LEAST TWO MAJOR STUDIOS TO ADD ABOUT 1500 FILMS TO ITS GROWING LIBRARY TURNER IS IN DEEP CONVERSATIONS WITH SEVERAL HOLLYWOOD STUDIOS INCLUDING WARNER BROS COLUMBIA PICTURES ENTERTAINMENT INC TWENTIETH CENTURYFOX FILM CORP AND UNITED ARTISTS CORP SAID BRADLEY SIEGEL EXECUTIVE VICE PRESIDENT OF TURNER NETWORK TELEVISION TURNER IS IN FINAL NEGOTIATIONS FOR EXCLUSIVE TV RIGHTS TO FILMS FROM TWO STUDIOS HE ADDED THE COST OF LOCKING UP THOSE RIGHTS DEPENDS ON SUCH FACTORS AS THE LENGTH OF THE LICENSING AGREEMENT AND THE AGES OF THE MOVIES BUT INDUSTRY EXECUTIVES SAID THE COMBINED DEALS COULD EXCEED 100 MILLION ADDING 1500 TITLES WOULD BRING TURNER'S MOVIE STABLE UP TO ABOUT 5500 FILMS MR SIEGEL SAID WHICH WOULD GIVE THE COMPANY MORE SCHEDULING FLEXIBILITY AND REDUCE REPETITION TURNER HAS UNLIMITED RIGHTS TO ABOUT 2800 MGM AND PRE1950 WARNER BROS TITLES AND 800 RKO MOVIES THE COMPANY HAS BEEN PUSHING HARD OF LATE TO SECURE MORE MOVIES FOR ITS CABLE NETWORKS LAST WEEK TURNER AGREED TO BUY NEW LINE CINEMA CORP AND CASTLE ROCK ENTERTAINMENT FOR ALMOST 800 MILLION IN STOCK CASH AND ASSUMED DEBT EARLIER THIS MONTH TURNER PAID AN ESTIMATED 30 MILLION TO PARAMOUNT COMMUNICATIONS INC TO ACQUIRE 300 MOVIE TITLES THE TV RIGHTS ON SUCH FILMS AS TRUE GRIT BREAKFAST AT TIFFANY'S ORDINARY PEOPLE AND THE ODD COUPLE WILL RUN THROUGH 2002 THOSE TITLES PLUS THE 1500 NEW FILMS WILL FEED TURNER CLASSIC MOVIES THE LATEST TURNER NETWORK SET TO DEBUT NEXT APRIL AND POSSIBLY THE AMERICAN MOVIE CLASSICS NETWORK WHICH TURNER IS INTERESTED IN ACQUIRING ACCORDING TO PEOPLE CLOSE TO THE COMPANY AMERICAN MOVIE CLASSICS IS CURRENTLY HALFOWNED BY LIBERTY MEDIA CORP WHICH IN TURN IS CONTROLLED BY TELECOMMUNICATIONS INC TCI A CABLE OPERATOR BASED IN ENGLEWOOD COLO OWNS ALMOST 23 OF TURNER THE REMAINING 50 OF AMC IS HELD IN EQUAL SHARES BY CABLEVISION SYSTEMS CORP WOODBURY NY AND GENERAL ELECTRIC CO'S NBC UNIT EARLIER THIS MONTH LIBERTY MEDIA OFFERED TO BUY ALL OF AMC IN MAKING THE BID LIBERTY SAID A THIRD PARTY PLANN TO LOAN IT THE MONEY TO BUY THE REMAINDER OF AMC AS PART OF THE DEAL THE LENDER WOULD HAVE AN OPTION OVER ABOUT A NINEMONTH PERIOD TO ACQUIRE ALL OF THE NETWORK ACCORDING TO DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CABLEVISION AND NBC HAVE UNTIL SEPT 16 TO DECIDE ON LIBERTY'S OFFER IF THEY TURN IT DOWN THEY MUST BUY OUT LIBERTY'S STAKE FOR BETWEEN 150 MILLION AND 175 MILLION IN CASH ACCORDING TO THE SEC DOCUMENTS SOME INDUSTRY EXECUTIVES SAY CABLEVISION AND NBC WOULD LIKE TO HOLD ON TO THE NETWORK IF THEY CAN RAISE THE MONEY TO BUY OUT LIBERTY OFFICIALS AT BOTH CABLEVISION AND NBC SAID ONLY THAT THEY ARE EXAMINING THEIR OPTIONS BUYING ALL OF AMC WOULD COST NEARLY 400 MILLION AFTER DEBT ASSUMPTION IS FIGURED IN IF TURNER WERE TO STEP FORWARD IT WOULD BE ABLE TO DOMINATE THE CLASSICMOVIE ARENA AND AVOID COSTLY COMPETITION FOR NEW FILMS AND TURNER PLANS TO CONTINUE THE HUNT FOR NEW MOVIES EVEN AFTER IT LOCKS UP ITS 1500 DESIRED NEW TITLES I CAN'T HAVE ENOUGH MR SIEGEL SAID WE ARE INSATIABLE 9308270135 930827 CIPSCO ENDS LOCKOUT OF UNION EMPLOYEES CONTRACT NOT REACHED SPRINGFIELD ILL CIPSCO INC SAID ITS CENTRAL ILLINOIS PUBLIC SERVICE CO UNIT ENDED A THREEMONTH LOCKOUT OF 1500 UNIONIZED WORKERS BUT THE PARTIES HAVEN'T AGREED TO A NEW CONTRACT THE UTILITYHOLDING COMPANY LAUNCHED THE LOCKOUT IN MAY ALLEGING THAT EMPLOYEES REPRESENTED BY THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS AND THE INTERNATIONAL UNION OF OPERATING ENGINEERS ENGAGED IN A WORK SLOWDOWN DURING A CONTRACT DISPUTE SINCE THEN THE COMPANY HAS OPERATED ITS GAS AND ELECTRIC SERVICE USING MANAGEMENT AND NONUNION WORKERS CIPSCO SAID IT EXPECTS MOST EMPLOYEES TO RETURN TO WORK THIS WEEKEND OR MONDAY BUT THE COMPANY HASN'T NEGOTIATED A NEW CONTRACT WITH THE IBEW LOCAL 702 CURRENTLY THE TERMS ON THE CONTRACT THAT EXPIRED IN APRIL ARE IN PLACE WITH SOME DIFFERENCE WITH RESPECT TO WAGES AND BENEFITS CIPSCO SAID THE COMPANY MEANWHILE SIGNED A TENTATIVE THREEYEAR COLLECTIVE BARGAINING AGREEMENT WITH IUOE LOCAL 148 WHICH THEN ENGAGED IN A SYMPATHY STRIKE WITH THE IBEW IT'S REALLY A SHAME THAT IT TOOK THE COMPANY ALL THIS TIME TO DECIDE THE LOCKOUT WASN'T GOING TO WORK SAID A SPOKESMAN FOR IBEW LOCAL 702 NOW WE HOPE THE COMPANY WILL BEGIN BARGAINING IN GOOD FAITH WITH A REAL GOAL OF REACHING AN AGREEMENT 9308270134 930827 UNIMARTS EXPECTS TO POST RECORD PROFIT FOR ITS FISCAL YEAR SPECIAL TO THE WALL STREET JOURNAL STATE COLLEGE PA UNIMARTS INC PROJECTS IT WILL EARN MORE THAN 41 CENTS A SHARE IN THE FISCAL YEAR ENDING SEPT 30 UP FROM 24 CENTS IN FISCAL 1992 AND SURPASSING THE RECORD OF 41 CENTS A SHARE EARNED IN 1988 THE COMPANY PLANS TO REPORT ITS YEAREND RESULTS IN THE FOURTH WEEK OF OCTOBER THE CONVENIENCE STORE OPERATOR REPORTED NET INCOME OF 19 MILLION OR 28 CENTS A SHARE FOR THE FIRST NINE MONTHS OF FISCAL 1993 INDICATING THAT FOURTHQUARTER NET COULD EXCEED 13 CENTS A YEAR AGO FOURTHQUARTER NET WAS 10 CENTS A SHARE IN AN INTERVIEW HENRY D SAHAKIAN CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE SAID THE COMPANY'S PROFIT MARGINS ARE UP SLIGHTLY SO FAR THIS QUARTER FROM THE YEAREARLIER FOURTH QUARTER IN PART BECAUSE OF GROWING SALES OF PREPARED FOODS WITH HIGH PROFIT MARGINS IN THE COMPANY'S CHAIN OF 444 CONVENIENCE STORES IN FISCAL 1994 THE COMPANY PLANS TO FURTHER INCREASE SALES OF PREPARED FOODS BY INTRODUCING ITS FOOD SERVICE OPERATIONS TO THE MINORITY OF ITS STORES THAT DON'T HAVE IT NOW AND BY EXPANDING THE MENU AT THOSE STORES WITH LIMITED SELECTIONS PREPARED FOODS THAT UNIMARTS STORES SELL ALL ON A CARRYOUT BASIS INCLUDE PIZZA CHICKEN HOT DOGS COFFEE DELI SANDWICHES AND BREAKFAST ITEMS MR SAHAKIAN EXPECTS TO CLOSE THREE OR FOUR MARGINALLY PERFORMING STORES BY SEPT 30 AS THEIR LEASES EXPIRE BRINGING THE TOTAL NUMBER OF STORES THE COMPANY OPERATES TO ABOUT 440 A HANDFUL OF STORES THAT ARE ONLY MARGINAL PERFORMERS PROBABLY WILL BE CLOSED IN FISCAL 1994 HE ADDED REDUCING THE COMPANY'S TOTAL STILL FURTHER UNLESS IT MAKES SOME ACQUISITIONS UNIMARTS HAS BEEN REDUCING ITS DEBT LOAD AND WILL CONTINUE TO DO SO IN FISCAL 1994 MR SAHAKIAN SAID THROUGH THE FIRST NINE MONTHS OF THE CURRENT FISCAL YEAR THE COMPANY HAD REDUCED ITS SENIOR DEBT BY ABOUT 3 MILLION TO 43 MILLION AND MR SAHAKIAN SAID SENIOR DEBT HAS NOW BEEN PARED BY ABOUT 6 MILLION 9308270133 930827 MARKETING & MEDIA MARKET RESEARCH FIRM IS SUING ARBITRON CO OVER ITS PEOPLEMETER' TENAFLY NJ PRETESTING CO A MARKET RESEARCH FIRM SUED ARBITRON CO CLAIMING THAT A PASSIVE PEOPLEMETER BEING DEVELOPED BY THE NEW YORK COMPANY TO MEASURE TELEVISION AND RADIO VIEWING INFRINGES ON A PATENT HELD BY PRETESTING THE SUIT FILED IN FEDERAL COURT IN MANHATTAN SEEKS TO PREVENT ARBITRON FROM FURTHER DEVELOPING THE DEVICE PRETESTING SAID IT UNVEILED TECHNOLOGY IN JUNE 1992 THAT COULD DETERMINE WHAT RADIO OR TELEVISION PROGRAM IS BEING WATCHED FROM AUDIO CODES THE TECHNOLOGY COULD BE INCORPORATED IN A WRIST WATCHLIKE DEVICE IN DECEMBER ARBITRON A UNIT OF MINNEAPOLISBASED CERIDIAN CORP ANNOUNCED PLANS FOR A PORTABLE PASSIVE PEOPLEMETER EQUIPPED WITH A COMPUTER CHIP AND SMALL ENOUGH TO BE CARRIED OR WORN IN BEEPER PIN OR PENDANT FORM A SPOKESMAN FOR ARBITRON SAID THE COMPANY HADN'T SEEN A COPY OF THE SUIT BUT SAID THAT IT HAS EXAMINED PRETESTING'S PATENT AND IS CONFIDENT THAT OUR DEVELOPMENT WILL NOT INFRINGE ON THAT PATENT 9308270132 930827 WHO'S NEWS IRG TECHNOLOGIES INC IRG TECHNOLOGIES INC RICHARDSON TEXAS BERNARD APPEL FORMER SENIOR VICE PRESIDENT OF TANDY CORP AND FORMER CHAIRMAN OF ITS RADIO SHACK UNIT WAS NAMED A DIRECTOR OF THIS COMPUTER PARTS DISTRIBUTOR THE APPOINTMENT OF MR APPEL 61 INCREASES THE BOARD TO FIVE MEMBERS 9308270131 930827 GM SAYS IT WILL IDLE ONE PLANT NEXT WEEK DETROIT GENERAL MOTORS CORP SAID IT WILL IDLE NEXT WEEK ITS PONTIAC MICH ASSEMBLY PLANT THAT BUILDS LIGHTDUTY TRUCKS GM SAID OVERTIME IS PLANNED NEXT WEEK AT CAR ASSEMBLY PLANTS IN OSHAWA ONTARIO AND FLINT MICH AND TRUCK ASSEMBLY PLANTS IN MORAINE OHIO JANESVILLE WIS FT WAYNE IND BALTIMORE FLINT AND PONTIAC MICH CHRYSLER CORP SAID IT SCHEDULED OVERTIME TOMORROW AND NEXT WEEK AT ASSEMBLY PLANTS IN DETROIT ST LOUIS NEWARK DEL STERLING HEIGHTS MICH AND WINDSOR AND BRAMALEA ONTARIO FORD MOTOR CO SAID IT HAS LOGGED DAILY OVERTIME THIS WEEK AT ASSEMBLY PLANTS IN ATLANTA ST LOUIS EDISON NJ LOUISVILLE KY AVON LAKE AND LORAIN OHIO ST PAUL MINN AND KANSAS CITY MO ALTOGETHER THE 10 DOMESTIC AUTO MAKERS PLAN TO BUILD 184887 CARS AND TRUCKS THIS WEEK UP 13 FROM THE 163974 VEHICLES BUILT A YEAR EARLIER 9308270130 930827 REVIEW & OUTLOOK EDITORIAL BILL CLINTON'S SUMMER VACATION WORD HAS IT THAT WHITE HOUSE STAFFERS ARE STEAMED AT ALL THE CRITICISM DIRECTED AT THE PRESIDENT FOR VACATIONING AMONG THE RICH OR FAMOUS IN MARTHA'S VINEYARD THE STAFFERS MAY HAVE A POINT THERE IS NO LAW REQUIRING THE PRESIDENT OF THE UNITED STATES TO SPEND HIS VACATION IN TRAILER PARKS OR VISITING SHELTERS FOR BATTERED WOMEN HOWEVER MUCH THIS ONE MIGHT HAVE WISHED TO NO DOUBT THIS VACATION SPOT CHOICE WAS IN ITS WAY A DEPRIVATION FOR MR CLINTON A LEADER WHO HAS CULTIVATED A POPULIST PERSONA AS ASSIDUOUSLY AS MR CLINTON HAS ALL THESE YEARS CAN'T HAVE FOUND IT ALTOGETHER EASY TO SWITCH COLD TURKEY FROM THE POLITICS OF COMPASSION TO FUN IN THE SUN WITH THE ROYALS OF HYANNISPORT STILL HARDLY ANYONE WHO SAW THE FRONT PAGE PHOTOGRAPHS COULD MISS THE HOLIDAY PLEASURE IN MR CLINTON'S FACE AS HIS PARTY TROUPED UP TO THE GREAT WHITE YACHT FOR A SAIL WITH THE KENNEDYS THERE WERE MANY AND VARIED GOOD REASONS FOR MR CLINTON'S PLEASURE FOR ONE THING HOBNOBBING WITH JACQUELINE ONASSIS IN THAT SETTING WITH ITS EVOCATIONS OF CAMELOT ISN'T EXACTLY HURTFUL TO THE PRESIDENT'S IMAGE HOWEVER IT CAME ABOUT WE SUSPECT NEW WHITE HOUSE GURU DAVID GERGEN MAY HAVE HAD A HAND IN IT IT WAS A SMALL BUT DISTINCT PR COUP A CONSIDERABLE QUARTER OF THE MEDIA ON THE OTHER HAND SEEM TO BEGRUDGE MR CLINTON HIS HOLIDAY IN ART BUCHWALD'S BACKYARD AS WELL AS HIS RECENT PLAY DATES ELSEWHERE IN A SOMEWHAT SHRILLER VERSION OF THE TONE TAKEN BY A FAIR PORTION OF THE PRESS WASHINGTON POST REPORTER RUTH MARCUS WENT ON ABOUT HOW THE PRESIDENT LOOKED LIKE ALL THOSE MIDDLEAGED GOLFERS WITH THEIR SHIRTS THAT ACCENTUATE THE CHUNKINESS OF PROSPERITY THAT SENTENCE IS OF COURSE THE WORK OF A JOURNALISTIC SENSIBILITY PECULIAR TO OUR TIMES THAT IS ONE GIVEN TO ASSOCIATING PROSPERITY WITH UGLINESS MS MARCUS GOES ON TO DESCRIBE THE PRESIDENT AS WEARING A GETUP SO DOOFYLOOKING SO WHITE GUY WHAT IS WITH THIS REVERSESNOB GOLF RESENTMENT THE PRESS SEEMS TO HAVE FIRST DAN QUAYLE AND NOW BILL CLINTON WE AREN'T INCLINED TO FAULT THE PRESIDENT FOR SEIZING THE CHANCE IN VAIL TO PLAY GOLF WITH JACK NICKLAUS WITH JERRY FORD ALONG TO CADDY IF AN AMATEUR GOLFER HAS TO GET HIMSELF ELECTED PRESIDENT SO HE CAN PLAY A ROUND WITH JACK NICKLAUS WE'RE NOT GOING TO COMPLAIN AS FOR THE WHITE GUYS WE SUGGEST SOMEONE INTRODUCE MS MARCUS TO LEE ELDER CALVIN PEETE MICHAEL JORDAN CHARLES BARKLEY OR ESPECIALLY TIGER WOODS THE 17YEAROLD GOLFING PRODIGY AND NONWHITE GUY IT WAS CALVIN PEETE IN FACT WHO TOLD A GROUP OF YOUNG BLACKS INTERESTED IN THE GAME THAT GOLF MAY BE THE ONLY WAY YOU HAVE TO MEET IMPORTANT PEOPLE IN YOUR COMMUNITY THE DOCTORS THE LAWYERS THE BUSINESS EXECUTIVES IT'S IMPORTANT TO MEET THESE PEOPLE WHILE YOU ARE YOUNG AND OH YES THE MEDIA GENDER POLICE MIGHT WANT TO TAKE A MOMENT FROM MOCKING MALE GOLFERS TO NOTICE SOMETHING IN THE SPORTS PAGES CALLED THE LADIES PROFESSIONAL GOLFING ASSOCIATION TOUR NOT TOO MANY PRESIDENTS OR GUYS WE KNOW OF ANY COLOR COULD STEP ONTO A COURSE WITH AMY ALCOTT OR NANCY LOPEZ EVEN THE CLINTONS' CRUISE ON THE 70FOOT TEMPELSMAN YACHT IS BEING MISINTERPRETED HAVING JUST REPEALED THE LUXURY TAX IT MAKES PERFECT SENSE FOR THE PRESIDENT TO TRY TO PROMOTE THE YACHT BUSINESS ON BEHALF OF THE SALTOFTHEEARTH BOATBUILDERS OF MAINE WHO GOT TOSSED OUT OF WORK BY THE LAST PAROXYSM AGAINST THE RICH IF ANYTHING GEORGE MITCHELL SHOULD HAVE BEEN ALONG FOR THE RIDE WITH TEDDY TOO WE EXPECT THE PRESIDENT WILL BE ABLE TO TAKE ALL THE CARPING IN GOOD STRIDE THE BEAUTY OF PLACES LIKE THE VINEYARD AND A FEW DAYS IN THE SUN HAVE A WAY OF PUTTING THE BALANCE BACK INTO LIFE EVEN THE LIFE OF A PRESIDENT WHO HAS BEEN RUNNING FOR THE OFFICE AS LONG AS THIS ONE HAS ALL THOSE HANDS AND FACES EAGERLY STRAINED TOWARD MR CLINTON IN THE STREETS OF MARTHA'S VINEYARD A PLACE GIVEN TO PRETENDING INDIFFERENCE TO THE GREAT AND THE FAMOUS ARE DRAMATIC TESTAMENT TO THE LUSTER OF THE PRESIDENCY LET CYNICS SAY WHAT THEY WILL AMERICANS ARE NEVER SO BUSY WELLHEELED OR ACCUSTOMED TO POWER THAT THEY AREN'T MOVED BY THE PRESENCE OF THE NATION'S LEADER THE COMPLAINTS OF THE PUNDITS AND EDITORIALISTS AT MR CLINTON'S VINEYARD SOJOURN HAS LOOKED WELL PETTY 9308270129 930827 MUNI POLITICAL GIFT DRAFT TO BE RELEASED MONDAY WASHINGTON THE MUNICIPAL SECURITIES RULEMAKING BOARD PLANS TO MAKE PUBLIC MONDAY THE SPECIFIC DRAFT LANGUAGE OF ITS PROPOSAL TO BAR MUNICIPAL BOND DEALERS FROM MAKING POLITICAL CONTRIBUTIONS TO STATE AND LOCAL OFFICIALS IN AN EFFORT TO OBTAIN BOND BUSINESS RELEASE OF THE BOARD'S REGULATORY LANGUAGE SHOULD EASE CONFUSION OVER THE SCOPE AND IMPACT OF THE PROPOSAL WHICH MSRB EXECUTIVE DIRECTOR CHRISTOPHER TAYLOR AND FORMER SECURITIES AND EXCHANGE COMMISSION GENERAL COUNSEL HARVEY PITT DESCRIBE AS MODELED IN KEY RESPECTS AFTER THE FOREIGN CORRUPT PRACTICES ACT MR PITT NOW WITH FRIED FRANK HARRIS SHRIVER & JACOBSON WAS OUTSIDE COUNSEL TO THE MSRB IN THIS ISSUE THE MSRB A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT THIS MONTH ANNOUNCED ITS INTENT TO PROPOSE A RULE TO PROHIBIT DEALERS FROM MAKING POLITICAL CONTRIBUTIONS TO STATE AND LOCAL BOND ISSUERS FOR THE PURPOSE OF OBTAINING OR RETAINING BOND BUSINESS AND TO REQUIRE DEALERS TO DISCLOSE FOR A FOURYEAR PERIOD ALL POLITICAL CONTRIBUTIONS MADE TO ISSUERS WITH WHOM THEY HAVE DONE BUSINESS THE MSRB PROPOSAL COMES AT A TIME WHEN THE SEC AND CONGRESS ARE TAKING A CLOSE LOOK AT THE ADEQUACY OF MUNI MARKET REGULATION IN GENERAL AND AT THE IMPACT OF POLITICAL PAYMENTS ON THE MARKET PROPOSED MSRB RULES MUST BE PUT OUT FOR PUBLIC COMMENT AND ARE SUBJECT TO SEC APPROVAL 9308270128 930827 FOREIGN DEALERS INVESTORS TRY TO SURVIVE TUMBLING INTEREST RATES IN SCANDINAVIA BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM UNTIL 1989 SWEDEN FINLAND AND NORWAY MAINTAINED AN UNFLAPPABLE SELFIMPOSED ISOLATION FROM INTERNATIONAL CAPITAL MARKETS ONCE PROTECTIONIST BARRIERS CRUMBLED HOWEVER FOREIGN INVESTORS THRONGED TO NORDIC CAPITALS FOR A PIECE OF THE LUCRATIVE GOVERNMENT BOND ACTION IN CONTRAST WITH BIGGER NATIONS SUCH AS GERMANY AND THE UK SCANDINAVIAN BONDS AREN'T OBLIGATORY COMPONENTS IN GLOBAL FIXEDINCOME PORTFOLIOS BUT AFFLUENT WELFARE STATES ARE PRIME CREDIT RISKS PRONE TO LIVE BEYOND THEIR MEANS WHICH MEANS LOFTY YIELDS THINGS TURNED TUMULTUOUS LAST YEAR AS EUROPE'S CURRENCY UPHEAVAL WHIPSAWED NORDIC FINANCIAL MARKETS SWEDEN'S CENTRAL BANK INCREASED A KEY MONEY MARKET INTEREST RATE TO AN INCREDIBLE 500 TRYING TO DEFEND THE KRONA BUT FINALLY CAPITULATED AND ABANDONED ITS COVETED FIXED EXCHANGERATE POLICY FINLAND WOUND UP DEVALUING ITS MARKKA TWICE WITHIN 12 MONTHS AND NORWAY ALSO TURNED ITS KRONE LOOSE TO FLOAT FREELY DEALERS AND INVESTORS HAVE BEEN SCRAMBLING EVER SINCE TO PICK UP THE PIECES INTEREST RATES PLUNGED IN ALL THREE COUNTRIES DURING THE FIRST SIX MONTHS EARNING BONDHOLDERS HEFTY PROFITS BUT SHARP FALLS IN SWEDISH AND FINNISH CURRENCIES WIPED OUT MUCH OF THOSE PAPER PROFITS FOR INTERNATIONAL INVESTORS ACCORDING TO US INVESTMENT BANK JP MORGAN THE AVERAGE LOCAL CURRENCY RETURN ON SWEDISH GOVERNMENT BONDS FOR THE YEAR TO DATE IS 1489 A RATE TOPPED IN EUROPE ONLY BY ITALY SPAIN AND DENMARK MEASURED IN US DOLLARS HOWEVER THE RETURN ON SWEDISH BONDS IN THE SAME PERIOD IS A PALTRY 071 EUROPE'S POOREST RATE FOR NOW THERE AREN'T MANY REASONS FOR INTERNATIONAL INVESTORS TO BOTHER WITH SCANDINAVIAN BONDS INTEREST RATES ARE EXPECTED TO FALL FURTHER THIS YEAR OF COURSE NOMINAL YIELDS ACROSS SCANDINAVIA ARE STILL HIGH AND VIRTUALLY CERTAIN TO STAY AT LEAST A FULL PERCENTAGE POINT OVER RATES OFFERED ON GERMAN GOVERNMENT BONDS OF COMPARABLE MATURITY INDEED SOME ANALYSTS ARE CONVINCED THAT SPREADS OVER GERMAN INTEREST RATES WILL HAVE TO APPROACH THE PREVIOUS THREEPERCENTAGEPOINT GAP TO ATTRACT BUYERS FOR HUGE AMOUNTS OF BONDS SWEDEN AND FINLAND MUST ISSUE TO FINANCE GIANT GOVERNMENT BUDGET DEFICITS HOLDINGS OF GOVERNMENT BONDS BY NONSWEDISH INVESTORS JUMPED TO 43 BILLION SWEDISH KRONOR US535 BILLION BY THE END OF LAST YEAR FROM 34 BILLION KRONOR A YEAR AGO REPRESENTING 13 OF TOTAL BONDS OUTSTANDING IN THIS YEAR'S FIRST SIX MONTHS NONSWEDISH INVESTORS' NET PURCHASES OF TREASURY BONDS SOARED TO 3386 BILLION KRONOR FROM 42 BILLION A YEAR AGO AUTHORITIES KNOW THEY NEED INTERNATIONAL INVESTORS TO FUND THE DEFICIT AND SINCE MOST BIG INTERNATIONAL FUNDS ARE STILL UNDERWEIGHT IN SWEDISH BONDS WE EXPECT STEADY BUYING FROM ABROAD SAID BO HEGG AN EXECUTIVE AT ALFRED BERG TRANSFERATOR AB A BIG STOCKHOLM BOND DEALER MOREOVER MANY ANALYSTS INSIST THE KRONA AND MARKKA ARE CONSIDERABLY UNDERVALUED SETTING THE STAGE FOR BIG PROFITS FROM CURRENCY APPRECIATION IN COMING YEARS YET WITH BOTH COUNTRIES MIRED IN SEVERE RECESSIONS IT COULD BE A LONG BUMPY RIDE TO SUCH CURRENCY WINDFALLS IN A RECENT BEARISH FORECAST JP MORGAN ANALYSTS PROJECTED THE SWEDISH CURRENCY WILL TUMBLE TO 891 KRONOR AGAINST THE DOLLAR BY YEAR END AND A PUNIER 921 KRONOR BY JUNE FROM ABOUT 810 KRONOR AGAINST THE DOLLAR CURRENTLY ONE DURABLE ATTRACTION OF STOCKHOLM'S BOND MARKET TO FOREIGNERS IS FAMED SCANDINAVIAN EFFICIENCY WHILE SWEDEN MAY HAVE STARTED LATE THE GOVERNMENT BOND MARKET TODAY BOASTS HIGHLY LIQUID BENCHMARK ISSUES WITH VOLUME OF UP TO 22 BILLION KRONOR COMBINED WITH AMPLE SECONDARY TRADING SUPPORTED BY DOZENS OF BANKS AND SECURITIES FIRMS SWEDISH TREASURY BONDS CARRY MATURITIES RANGING FROM TWO TO 16 YEARS WITH FIXED INTEREST RATES PAID ANNUALLY ISSUANCE IS MANAGED BY THE NATIONAL DEBT OFFICE AN AGENCY FOUNDED IN 1789 THAT OPERATES UNDER PARLIAMENTARY SUPERVISION MINIMUM DENOMINATIONS USED TO BE ONE MILLION KRONOR BUT IN AN ATTEMPT TO SPUR PURCHASES BY SMALLER INVESTORS THE NATIONAL DEBT OFFICE SLASHED THE LOWEST DENOMINATION TO 100000 KRONOR BONDS CAN BE BOUGHT THROUGH MAJOR BANKS AND SECURITIES FIRMS MANY OF WHICH ALSO SERVE AS PRIMARY GOVERNMENT SECURITIES DEALERS REQUIRED TO MAINTAIN TWOWAY MARKETS FOR A HANDFUL OF BENCHMARK ISSUES ALL GOVERNMENT BOND ISSUES ARE QUOTED ON THE STOCKHOLM STOCK EXCHANGE NONSWEDISH INVESTORS ARE EXEMPT FROM WITHHOLDING TAX IT'S ALSO POSSIBLE TO LOCK IN SWEDISH GOVERNMENT BOND YIELDS WITH SMALLER INVESTMENTS SUCH AS A POPULAR NATIONAL SAVINGS ACCOUNT PROGRAM OFFERED BY THE DEBT OFFICE THE MINIMUM DEPOSIT REQUIRED IS 5000 KRONOR INDIVIDUALS ARE ALLOWED TO INVEST UP TO FIVE MILLION KRONOR HERE TOO FOREIGN INVESTORS ARE EXEMPT FROM WITHHOLDING TAX AND CAN WITHDRAW FUNDS AT ANY TIME SUBJECT TO A FEE NATIONAL SAVINGS ACCOUNTS PAY YIELD 05 OF A PERCENTAGE POINT BELOW THE BENCHMARK GOVERNMENT BOND TO WHICH ACCOUNTS ARE LINKED ONE ACCOUNT OPTION OFFERS FLOATING RATE INTEREST ADJUSTED EVERY THREE MONTHS ON A GOVERNMENT BOND MATURING IN 1997 TWO OTHER ACCOUNTS OFFER FIXED INTEREST RATES LINKED TO GOVERNMENT BOND ISSUES MATURING IN 1997 AND 1999 RESPECTIVELY THE SIMPLEST WAY TO INVEST IN SWEDISH BONDS IS PROBABLY THROUGH DOZENS OF MUTUAL FUNDS OFFERED BY BANKS AND SECURITIES FIRMS THERE ARE VIRTUALLY NO RESTRICTIONS ON THE SIZE OF INVESTMENTS IN BOND FUNDS BOND FUNDS ARE SUBJECT TO WITHHOLDING TAX BUT UNDER PROVISIONS OF DUAL TAX TREATIES FINAL LEVIES WILL BE IDENTICAL WITH RATES IN MOST INVESTORS' HOME COUNTRIES HOWEVER BECAUSE OF HEAVY FRONTEND FEES AND OTHER CHARGES THE FUNDS AREN'T APPROPRIATE FOR INVESTORS LIKELY TO WITHDRAW THEIR MONEY IN LESS THAN FIVE YEARS COMPARED WITH STOCKHOLM NORWAY'S GOVERNMENT BOND MARKET REMAINS LESS DEVELOPED AND FAR LESS LIQUID THAT'S MAINLY BECAUSE THE PUBLIC SECTOR'S BORROWING NEEDS HAVE BEEN MINUSCULE THE PAST FIVE YEARS NEW ISSUE VOLUME IS EXPECTED TO CLIMB RAPIDLY THE NEXT FEW YEARS THOUGHAND THREE NEW GOVERNMENT BOND ISSUES THIS YEAR TOTALING 54 BILLION NORWEGIAN KRONER US74 BILLION HAVE BOOSTED THE TOTAL VOLUME OUTSTANDING BY MORE THAN 50 THOUGH MOST NORWEGIAN GOVERNMENT BONDS ARE ISSUED IN ONE BILLIONKRONE DENOMINATIONS A TINY SLICE OF EACH ISSUE COMES IN SMALLER 10000KRONE DENOMINATIONS TARGETED FOR RETAIL INVESTORS SUCH BONDS IN MATURITIES FROM THREE TO 10 YEARS CAN BE PURCHASED FROM ABOUT A DOZEN BIG BANKS AND SECURITIES FIRMS WHICH ALSO PROVIDE A SECONDARY MARKET THERE'S NO WITHHOLDING TAX AND NORWAY BOASTS A STATEOFTHEART ELECTRONIC REGISTRATION SYSTEM FOR GOVERNMENT BONDS BUT FOREIGN INVESTORS STILL MUST MAINTAIN A CUSTODIAL ACCOUNT WITH A DOMESTIC BANK WHICH CARRIES A MODEST ANNUAL CHARGE NORWAY'S KRONE HAS FARED MUCH BETTER THAN SWEDISH OR FINNISH CURRENCIES LATELY FALLING ONLY 4 SINCE IT BEGAN TO FLOAT FREELY LATE LAST YEAR LAST MONTH YIELDS ON NORWEGIAN BENCHMARK GOVERNMENT BONDS DROPPED ABOUT 03 PERCENTAGE POINT UNDER COMPARABLE MATURITY GERMAN GOVERNMENT BONDS FINLAND'S GOVERNMENT BOND MARKET ALSO IS PREDOMINANTLY INSTITUTIONAL WITH BIG INVESTORS TRADING ISSUES WITH MATURITIES BETWEEN FOUR AND 10 YEARS IN STEEP ONE MILLION FINNISHMARKKA US172680 MINIMUM DENOMINATIONS 9308270127 930827 CHRYSLER CORP IS EXPECTED TO OUTLINE OFFER TO UAW DETROIT CHRYSLER CORP IS EXPECTED TODAY TO OUTLINE ITS INITIAL CONTRACT OFFER TO THE UNITED AUTO WORKERS WHICH LEARNED WEDNESDAY THAT FORD MOTOR CO IS MAKING ANOTHER ASSAULT ON THE WAGES AND BENEFITS OF THE YETTOBEHIRED THE INITIAL OFFERS USUALLY INCLUDE PROPOSALS THAT NOBODY EXPECTS TO GET VERY FAR BUT THEY DO FIGURE INTO THE UNION'S CALCULATIONS ON WHERE TO FOCUS BARGAINING IN A DRIVE FOR AN INDUSTRYPATTERN SETTLEMENT BEFORE THE OLD PACTS EXPIRE SEPT 14 THE UAW IS TO PICK A TARGET COMPANY MONDAY THIS TIME GM ISN'T PLANNING TO MAKE A FORMAL COMPREHENSIVE CONTRACT OFFER BUT COMPANY AND UNION SPOKESMEN INSIST THAT ONE ISN'T NECESSARY BECAUSE THE BARGAINERS ALREADY KNOW WHERE BOTH SIDES STAND FORD MADE ITS INITIAL OFFER WEDNESDAY IN A 15PAGE OUTLINE ACCORDING TO A REPORT PUBLISHED IN THE DETROIT FREE PRESS DETAILS OF WHICH PEOPLE CLOSE TO THE TALKS CONFIRMED THE FORD PROPOSAL INCLUDES PROVISIONS THAT WOULD WIDEN THE PAYANDBENEFITS GAP BETWEEN VETERAN WORKERS AND NEW HIRES AS A WAY OF CUTTING COSTS UNDER FORD'S PROPOSAL STARTING WAGES FOR NEW HOURLY WORKERS WOULD BE PEGGED AT 60 OF THE NORMAL BASE RATE COMPARED WITH 85 NOW AND THE CATCHUP TIME WOULD BE STRETCHED OVER SIX YEARS COMPARED WITH THE CURRENT 18 MONTHS 9308270126 930827 ASEA BROWN'S DANISH UNIT ZURICH SWEDISHSWISS HEAVY ENGINEERING GROUP ABB ASEA BROWN BOVERI AG SAID ITS DANISH UNIT ABB SCANDIA RECEIVED AN ORDER VALUED AT ABOUT 40 MILLION FROM BELGIAN TRAIN MANUFACTURER BN A DIVISION OF BOMBARDIER EURORAIL SA OF BRUSSELS THE ORDER IS FOR MODULE TRAINFRONTS TO EQUIP 120 SETS OF NEW ELECTRIC TRAINS FOR THE BELGIAN STATE RAILWAYS ABB SAID ABB SCANDIA IS SCHEDULED TO BEGIN DELIVERING THE TRAINFRONT MODULES IN 1995 WITH THE ORDER EXPECTED TO BE COMPLETED BY 1998 ABB ASEA BROWN BOVERI IS COOWNED BY BBC BROWN BOVERI AG OF SWITZERLAND AND ASEA AB OF SWEDEN 9308270125 930827 JAPAN'S PRODUCTION OF MOTOR VEHICLES FELL 13 IN JULY SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S PRODUCTION OF CARS TRUCKS AND BUSES FELL 13 IN JULY FROM THE YEAREARLIER PERIOD TO SLIGHTLY MORE THAN ONE MILLION UNITS JULY'S LOWEST LEVEL IN A DECADE THE JAPAN AUTOMOBILE MANUFACTURERS' ASSOCIATION SAID IT WAS THE TENTH CONSECUTIVE MONTH OF YEARONYEAR DECLINE REFLECTING THE CONTINUED SLUMP BOTH IN DOMESTIC SALES AND IN EXPORTS TO THE US AND EUROPE THE 13 DECLINE FOLLOWED A 10 DROP IN JUNE MARKING DOUBLEDIGIT DECLINES IN BACKTOBACK MONTHS FOR THE FIRST TIME SINCE THE LAST RECESSION HIT THE AUTO INDUSTRY IN 1974 IN JULY PASSENGERCAR PRODUCTION DROPPED 13 THE SHARPEST DROP SINCE PRODUCTION FELL 22 IN AUGUST 1974 ALTHOUGH PRODUCTION OF MIDSIZE CARS INCHED UP ALMOST 2 SMALLCAR PRODUCTION PLUNGED 19 A VEHICLE IS CLASSIFIED BY THE DISPLACEMENT OF ITS ENGINE A MIDSIZE CAR HAS A DISPLACEMENT OF AT LEAST 2001 CUBIC CENTIMETERS TRUCK SALES FELL FOR THE 24TH STRAIGHT MONTH REFLECTING CUTBACKS IN CAPITAL OUTLAYS BY COMPANIES AND LOWERED DEMAND FOR TRUCKING SERVICES IN A WEAK ECONOMY A REPORT EARLIER THIS MONTH BY THE AUTO DEALERS' ASSOCIATION SHOWED THAT DOMESTIC VEHICLE SALES DROPPED 11 IN JULY FROM THE YEAREARLIER MONTH THE REPORT ATTRIBUTED COOL CONSUMER SENTIMENT TO UNCERTAINTY ABOUT THE ECONOMY AND TO FALLING INCOME RESULTING FROM MANY COMPANIES' CUTS IN JUNE'S OVERTIME WORK AND IN ANNUAL BONUS PAYMENTS YESTERDAY'S DATA CAME A DAY AFTER JAPANESE CAR MAKER TOYOTA MOTOR CORP REPORTED A SHARP 24 DECLINE IN PARENT PRETAX PROFIT FOR THE YEAR ENDED JUNE 30 AND FORECAST A 30 DROP FOR THE CURRENT FISCAL YEAR ALSO YESTERDAY JAPANESE INTERNATIONALTRADE MINISTER HIROSHI KUMAGAI EXPRESSED CONCERN THAT THE CONTINUED SLUMP AMONG CAR MAKERS WILL HINDER PROFIT AT AUTORELATED COMPANIES THUS AFFECTING A RANGE OF INDUSTRIES IN JULY ALL JAPANESE VEHICLE MAKERS POSTED DECLINES IN PRODUCTION THE ASSOCIATION SAID AMONG THE COUNTRY'S FOUR LARGEST MANUFACTURERS PRODUCTION FELL 15 AT TOYOTA AND 11 AT NISSAN MOTOR CO MITSUBISHI MOTORS CORP'S DECLINE WAS A RELATIVELY MODEST 24 HELPED BY STEADY THOUGH SLOWING DEMAND FOR ITS RECREATIONALVEHICLE MODELS AND PRODUCTION AT HONDA MOTOR CO FELL ONLY 27 HELPED BY THE INTRODUCTION OF NEW MODELS AT THE BEGINNING OF JULY AN ASSOCIATION SPOKESMAN SAID 9308270124 930827 BUSINESS BRIEFS TOY MAKER HASBRO INC AGREED TO BUY 15 OF VIRGIN INTERACTIVE ENTERTAINMENT PLC THE VIDEOGAME AND ENTERTAINMENTSOFTWARE SUBSIDIARY OF THE BRITAINBASED VIRGIN COMMUNICATIONS LTD FOR ABOUT 25 MILLION LIGGETT GROUP A UNIT OF BROOKE GROUP LTD SIGNED AN AGREEMENT WITH CHINA NATIONAL TOBACCO CORP TO PROVIDE TECHNICAL ASSISTANCE FOR PRODUCING AN AMERICANBLEND CIGARETTE FOR CONSUMPTION IN CHINA TERMS WEREN'T DISCLOSED MILTOPE GROUP INC MAKER OF COMPUTERS FOR SEVERE ENVIRONMENTS AND MILITARY USES RECEIVED A 174 MILLION CONTRACT FROM UKBASED MARCONI RADAR & CONTROL SYSTEMS LTD TO PROVIDE MILITARIZED DISK SYSTEMS AND REMOVABLE DISK CARTRIDGES CONNER PERIPHERALS INC WILL LAY OFF ABOUT 140 EMPLOYEES AT ITS HEADQUARTERS AS PART OF ITS DECISION TO STOP MAKING AN OLD LINE OF HARDDISK DRIVES THE SAN JOSE CALIFBASED COMPANY HAS ABOUT 10000 EMPLOYEES WORLDWIDE GTE CORP RECEIVED TWO FIVEYEAR CONTRACTS TOTALING 14 MILLION TO SUPPLY TELEPHONE DISTRIBUTION SYSTEMS TO MOODY AIR FORCE BASE GA AND POPE AIR FORCE BASE NC 9308270123 930827 ADVERTISING CHRYSLER DIRECTS NEON CAMPAIGN AT GENERATION X BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL TWO AD AGENCIES ARE COMPETING TO HELP CHRYSLER CORP GRAB THE ATTENTION OF THE JADED MEDIA SOPHISTICATES OF GENERATION X WHEN IT INTRODUCES ITS NEW NEON SMALL CAR AFTER THE FIRST OF THE YEAR FOR ITS FIRST SERIOUS PITCH TO THE 18 TO 30YEAROLD CROWD CHRYSLER PLANS A HEAVY AD BLITZ THAT IT HOPES WILL TURN THE CAR INTO A SENSATION AND IN A DEPARTURE FOR DETROIT WHERE AD AGENCIES AND AUTO MAKERS TEND TO MARCH HANDINHAND FOR DECADES CHRYSLER IS PITTING THE CREATIVE POWERS OF BOZELL INC WHICH HANDLES THE CHRYSLERPLYMOUTH BRANDS AGAINST THOSE OF BBDO A UNIT OF OMNICOM GROUP WHICH HANDLES DODGE IN THE END THOUGH BOTH AGENCIES WILL BENEFIT THE AD CAMPAIGN WILL FACE TWO TOUGH CHALLENGES IT WILL HAVE TO HELP RELAUNCH CHRYSLER IN A COMPACTCAR MARKET DOMINATED BY HONDA NISSAN AND TOYOTA AND IT MUST REACH THE SAVVY AND NOTORIOUSLY ADADVERSE 20SOMETHING GENERATION THEY'VE BEEN LIED TO A LOT THEY'VE HEARD IT ALL SAYS BILL OSWALD HEAD OF BBDO'S DETROIT OFFICE WHO CAUTIONS AGAINST OVERSELLING TO THIS AGE GROUP THEY'VE BEEN AROUND THE HORN AND THEY HAVE ACCESS TO TREMENDOUS AMOUNTS OF INFORMATION THEY WANT TO BE SOLD TO BUT NOT HUCKSTERED OTHERS IN THE AUTO INDUSTRY ARE STARTING TO FACE UP TO THE CHALLENGE AND HONDA MOTOR CO'S ACURA DIVISION SEES IT AS MORE THAN A LITTLE TICKLISH THE LUXURY ACURA UNIT THINKS ITS SPORTY INTEGRA SHOULD SELL AMONG GENERATION XERS AS WELL AS AMONG BABY BOOMERS AND IT HAS DEVELOPED TWO SEPARATE AD CAMPAIGNS FOR THE TWO GROUPS SO THE CYNICAL ICONOCLASTIC GENERATION X ADS ARE RUNNING ON MTV AND HIP SHOWS LIKE FOX'S IN LIVING COLOR WHERE ACURA THINKS FEWER BABY BOOMERS WILL SEE THEM THE X COMMERCIALS DEVELOPED BY KETCHUM ADVERTISING FEATURE AN IRREVERENT SNOOTY CARTOON DOG NAMED LEONARD WHO DELIVERS FUNNY BUT FAINT PRAISE FOR THE INTEGRA USING THE VOICE OF COMEDIAN DENNIS MILLER A CAR I'M NOT EMBARRASSED TO HANG MY HEAD OUT OF FOR MOREMAINSTREAM BUYERS ACURA IS AIRING A PIECE THAT HAS THE INTEGRA SEEMINGLY ROARING THROUGH LOOPS ON A GIANT HOT WHEELS TRACK IN A DESERT FEW COMPANIES ARE MORE KEENLY AWARE OF THE DANGERS OF MISREADING A NEW GENERATION OF BUYERS THAN CHRYSLER IN THE '80S ITS STARTLING SUCCESS WITH JEEPS AND MINIVANS WAS OFFSET BY A GAPING FAILURE TO UNDERSTAND A WHOLE GENERATION OF CAR BUYERS WE DIDN'T DO TOO WELL LISTENING TO THE BABY BOOMERS WHEN THEY WERE EMERGING AND WE LOST THEM TO THE IMPORTS CONCEDES JOHN B DAMOOSE CHRYSLER'S VICE PRESIDENT OF MARKETING WHO PLEDGES NOT TO REPEAT THAT MISTAKE WITH GENERATION X WITH THE NEW NEON CHRYSLER'S ADVERTISING AGENCIES HAVE THE ADVANTAGE OF A CAR DESIGNED TO MEET THE DESIRES OF A GENERATION THAT'S HIP BUT RECESSIONWISE THE CAR WILL HAVE A SPORTY ENGINE AND DUAL AIR BAGS BUT AN ATTENTIONGRABBING LOW BASE PRICE AROUND 9000 EVEN THOUGH MANY LOADED MODELS WILL SELL FOR THOUSANDS MORE THOMAS C GALE CHRYSLER'S VICE PRESIDENT FOR DESIGN AND INTERNATIONAL OPERATIONS DESCRIBES THE BUBBLETOPPED CAR WITH BIG ROUNDED HEADLIGHTS AS YOUTHFUL LIVELY AND A LITTLE BIT HUGGABLE AND ALL OF THESE THINGS ROLLED INTO A VERY FUNCTIONAL PACKAGE FUNCTIONAL AT A GOOD PRICE IS JUST THE KIND OF PRODUCT THAT GENERATION X IS LOOKING FOR PEOPLE WHO HAVE STUDIED THE GROUP SAY GENERATION X IS SOMETIMES CHARACTERIZED AS QUIRKY IRREVERENT AND REBELLIOUS BUT MANY OF THE MEMBERS OF THE GENERATION ARE VERY DOWNTOEARTH AND FAR MORE PRAGMATIC THAN BABY BOOMERS SAYS LILLIAN MARESCH FOUNDER OF GENERATION INSIGHTS A CONSULTING GROUP CHRYSLER IS HOPING THE RIGHT VEHICLE COMBINED WITH A DEFT MARKETING CAMPAIGN WILL ELEVATE THE NEON TO SOMETHING CLOSE TO CULT STATUS WE HAVE A REAL CHANCE HERE TO CREATE A BIT OF AN AUTOMOTIVE PHENOMENON IF WE PROPERLY MARKET THIS VEHICLE A LITTLE LIKE NIKE DID WITH ATHLETIC SHOES MR DAMOOSE TOLD A GROUP OF CHRYSLER DEALERS MEETING IN DETROIT THIS WEEK MR DAMOOSE WENT ON TO COMPARE THE AD CAMPAIGN HE WANTS TO THE EYECATCHING CAMPAIGNS OF MACINTOSH COMPUTERS AND PEPSI BOTH BBDO ACCOUNTS FOR YOU TEALEAF READERS BY PUTTING A YOUTHFUL FUN SPIN ON WHAT IS AT BASE JUST A PRACTICAL SMALL CAR CHRYSLER HOPES TO WALK A THIN LINE BETWEEN HIP AND CONVENTIONAL TO MEET ITS 250000300000 ANNUAL SALES PROJECTIONS IT WILL HAVE TO REACH WELL BEYOND THE 20SOMETHING CROWD THAT'S WHY CHRYSLER WILL KICK THE CAR OFF WITH HEAVY ADVERTISING PLAY ON SUCH OFTEMPLOYED VENUES AS THE SUPER BOWL AND THE WINTER OLYMPICS AND TO MAKE A BROAD SPLASH CHRYSLER ALSO HOPES TO MAGNIFY ITS IMPACT BY BUILDING UP INVENTORIES BETWEEN NOVEMBER WHEN THE CARS WILL FIRST BE BUILT AND JANUARY WHEN THEY WILL BE SHIPPED EN MASSE TO DEALERS ACROSS THE COUNTRY THE CYNICISM OF GENERATION X WHICH MAKES IT A NOTORIOUSLY TOUGH SELL INDIRECTLY CAUSED CHRYSLER TO SET UP THE COMPETITION BETWEEN BBDO AND BOZELL LAST FALL THE TWO AGENCIES PENNED SEPARATE CAMPAIGNS TO MARKET THE NEARLY IDENTICAL CHRYSLER CONCORDE AND DODGE INTREPID SEDANS TO BABY BOOMERS BUT CHRYSLER DECIDED XERS DIDN'T WANT TO BUY INTO THE TAILLIGHT AND UPHOLSTERY NIP AND TUCKS THAT PASS FOR PRODUCT DIFFERENTIATION IN DETROIT THE NEON WILL BE ONE CAR SOLD BY BOTH DODGE AND CHRYSLERPLYMOUTH FRANCHISES STILL THE COMPETITION IS INTENDED TO BE A CREATIVE ONE ONLY MR DAMOOSE SAYS BILLINGS WILL STILL BE DIVIDED BETWEEN THE TWO AGENCIES AS IF THEY WERE HANDLING ADS FOR SEPARATE DODGE AND PLYMOUTH VERSIONS CHRYSLER USED A SIMILAR COMPETEWITHOUTFINANCIALRISK STRATEGY EARLIER THIS YEAR WHEN IT CENTRALIZED ITS MEDIA BUYING WITH A BBDO UNIT AFTER A THREEWAY COMPETITION THAT INVOLVED BOZELL AND CMEKHBB WHICH HANDLES THE JEEP AND EAGLE BRANDS BOOKKEEPING CHANGES ALLOWED THE SWITCH TO BE MADE WITHOUT AFFECTING PROFITS AT THE THREE AGENCIES CHRYSLER SAYS G HEILEMAN BREWING CO ABRUPTLY PULLED ITS COMBINED 20 MILLION ACCOUNT FROM TWO NEW YORK AGENCIES MESSNER VETERE BERGER MCNAMEE SCHMETTERER AND DEUTSCH/DWORIN THE BREWS AFFECTED ARE OLD STYLE BEER WHICH MESSNER HANDLED AND COLT 45 MALT LIQUOR COOL COLT COLT 45 PREMIUM BEER AND ITS LIGHT COUNTERPART AND RAINIER BEER WHICH WERE PARKED AT DEUTSCH MESSNER HAD 12 MILLION OF HEILEMAN BILLINGS WITH THE BALANCE AT DEUTSCH THE END CAME WITHOUT WARNING SAID DONNY DEUTSCH THE AGENCY'S EXECUTIVE VICE PRESIDENT AND CREATIVE DIRECTOR HENRY GERFEN HEILEMAN'S EXECUTIVE VICE PRESIDENT OF MARKETING VISITED BOTH AGENCIES ON TUESDAY AND INFORMED THEM OF THEIR FIRINGS MR GERFEN DIDN'T RESPOND TO TELEPHONE MESSAGES YESTERDAY BUT HIS SPOKESWOMAN SAID WE WEREN'T HAPPY WITH THE PERFORMANCE AND WE EXPECTED MORE THAN WE GOT FROM BOTH AGENCIES SHE WOULDN'T ELABORATE WE'RE DISAPPOINTED BUT WE WON'T LET THIS DAMPEN OUR SPIRITS SAID MR DEUTSCH NOW WE CAN GO AFTER A REAL BEER EXECUTIVES AT MESSNER VETERE COULDN'T BE REACHED MR DEUTSCH SAID BUDGET RESTRAINTS WERE CITED IN THE FIRING MR GERFEN SAID MR DEUTSCH TOLD AGENCY EXECUTIVES THAT THE BREWER WAS SPENDING TOO MUCH MONEY UPWARDS OF 250000 ANNUALLY TRAVELING FROM ITS OFFICES OUTSIDE CHICAGO TO NEW YORK THE HEILEMAN SPOKESWOMAN SAID THE COMPANY IS LOOKING FOR SOMEONE LOCAL BUT ADDED THAT OTHER MIDWEST AGENCIES WOULD BE EXPLORED AS WELL COSBY ACTOR BILL COSBY IS THE NEW SPOKESMAN FOR THE RETAIL CHAIN SERVICE MERCHANDISE CO NASHVILLE TENN AND WILL APPEAR IN TELEVISION RADIO AND PRINT SPOTS AS WELL AS IN CATALOGS CIRCULARS AND INHOUSE DISPLAYS THE AGENCY IS INGALLS QUINN & JOHNSON BOSTON SHONEY'S SHONEY'S RESTAURANTS NASHVILLE NAMED MARTIN/WILLIAMS MINNEAPOLIS AS ITS NEW AD AGENCY FOR ITS 15 MILLION ACCOUNT THE AGENCY WON THE BUSINESS OVER INCUMBENT WPP GROUP'S OGILVY & MATHER ATLANTA AND HAL RINEY & PARTNERS SAN FRANCISCO FRITOLAY FRITOLAY A UNIT OF PEPSICO INC WILL LAUNCH ITS FIRST NATIONAL CAMPAIGN FOR ITS ROLD GOLD PRETZELS ON THE MONDAY PREMIERE OF CBS INC'S LATE SHOW WITH DAVID LETTERMAN THE SPOTS FROM OMNICOM'S DDB NEEDHAM CHICAGO FEATURE SEINFELD COSTAR JASON ALEXANDER KRYSTAL MILLER CONTRIBUTED TO THIS ARTICLE 9308270122 930827 CANADA DROPS TARIFFS ON CERTAIN PRODUCTS TO AID ITS RETAILERS OTTAWA THE CANADIAN GOVERNMENT ANNOUNCED THE REMOVAL OF TARIFFS ON 25 CONSUMER PRODUCTS TO HELP CANADIAN RETAILERS BE MORE PRICE COMPETITIVE WITH THEIR US COUNTERPARTS THE MOVE WHICH IS EFFECTIVE IMMEDIATELY INVOLVES GOODS WHICH AREN'T PRODUCED IN CANADA ANNUAL IMPORTS OF THE 25 PRODUCTS ARE VALUED AT ABOUT 365 MILLION CANADIAN DOLLARS US2783 MILLION DUTIES ON THESE IMPORTS HAVE AMOUNTED TO ABOUT C14 MILLION A YEAR THE FINANCE DEPARTMENT SAID THE REMOVAL OF THE TARIFFS WILL HELP CANADIAN RETAILERS TO REMAIN COMPETITIVE AND TO OFFER LOWER PRICES ON CONSUMER GOODS IN RECENT YEARS MANY CANADIANS HAVE SHOPPED IN THE US BECAUSE OF LOWER US PRICES FOR GOODS FROM OVERSEAS CANADIAN RETAILERS HAVE ATTRIBUTED THEIR HIGHER PRICES PARTLY TO CANADA'S COMPARATIVELY HIGH TARIFFS TARIFFS TO BE LIFTED INCLUDE A LEVY OF 175 ON GOLF BAGS 20 ON DOWNHILL SKI BOOTS 39 ON ELECTRONIC CALCULATING MACHINES 103 ON HEADPHONES 8 ON CASSETTE PLAYERS AND TAPE RECORDERS 95 ON LASER VIDEODISK PLAYERS AND 73 ON TELESCOPES IT IS THE SECOND ROUND OF SUCH TARIFF REMOVALS BY THE GOVERNMENT THE INITIAL ROUND IN FEBRUARY 1992 INVOLVED IMPORTS VALUED AT MORE THAN C1 BILLION ANNUALLY 9308270121 930827 LETTERS TO THE EDITOR DEMJANJUK THE NOTSOTERRIBLE IVAN PROF ALAN DERSHOWITZ IS LOSING IT HE IS DISTRESSED BECAUSE THE CHIEF JUDGE OF THE US COURT OF APPEALS FOR THE SIXTH CIRCUIT IS REOPENING CASES ON THE BASIS OF UNHAPPINESS GENERATED BY NEWSPAPER AND MAGAZINE ARTICLES ON DEMJANJUK UNPRECEDENTED LAWLESSNESS EDITORIAL PAGE AUG 5 ASSUMING THIS IS SO WHERE IS THE UNPRECEDENTED LAWLESSNESS DOES A FEDERAL JUDGE HAVE TO WAIT FOR A LAWYER TO TELL HIM HE MADE A MISTAKE IN SENDING AN INNOCENT MAN TO WHAT ALL BELIEVED WOULD BE A CERTAIN DEATH BEFORE ACTING TO REVERSE HIS ORDER WOULD IT HAVE BEEN JUDICIAL HYPERACTIVISM IF THE SUPREME COURT ON ITS OWN MOTION HAD STAYED THE EXECUTION OF JULIUS AND ETHEL ROSENBERG WAS IT JUDICIAL HYPERACTIVISM WHEN JUDGE SIRICA REOPENED THE WATERGATE TRIAL ON THE SOLE BASIS OF A LETTER FROM A CONVICTED DEFENDANT A JUDGE MUST BE UNSWAYED BY PARTISAN INTERESTS PUBLIC CLAMOR OR FEAR OF CRITICISM PROF DERSHOWITZ'S PARTISAN CRITICISM OF CHIEF JUDGE MERRITT IS AS SILLY AS IT IS INAPPROPRIATE PROF DERSHOWITZ ARGUING AGAINST JUDICIAL HYPERACTIVISM AND OVERREACHING GIVE ME A BREAK THOUSANDS OF LAW STUDENTS AT HARVARD LAW SCHOOL HAVE BEEN TAUGHT THAT THE SUPREME COURT UNDER CHIEF JUSTICE EARL WARREN SHOULD BE REVERED FOR THE STEPS IT TOOK IN CREATING NEW CONSTITUTIONAL RIGHTS AND PROTECTING CIVIL LIBERTIES YET JOHN DEMJANJUK IS TREATED AS A CRIMINAL ON THE BASIS THAT IF HE WAS NOT IVAN THE TERRIBLE OF TREBLINKA HE WAS SURELY ANOTHER PRETTY TERRIBLE IVAN IN NO STATE IN THE US WOULD THIS BE THE BASIS FOR CONVICTION MR DERSHOWITZ ALSO STATES MR DEMJANJUK IS NOT A PARTICULARLY SYMPATHETIC DEFENDANT NOT THAT THERE IS ANY LEGAL REASON THAT IT SHOULD MATTER BUT WHAT IS SO UNSYMPATHETIC ABOUT AN OLD MAN WHO WAS ACQUITTED OF THE ONLY CRIME FOR WHICH HE WAS EVER CHARGED WANTING TO SPEND HIS LAST YEARS LIVING WITH HIS FAMILY IN OHIO INSTEAD OF BY HIMSELF IN UKRAINE COME ON PROF DERSHOWITZ WHY DO YOU REALLY DISLIKE JUDGE MERRITT DOING WHAT YOU CLAIM ARE THE SAME KINDS OF THINGS THAT MADE YOU SO PROUD OF FORMER CHIEF JUSTICE WARREN 9308270120 930827 POLICE SEARCH OFFICES AT VW IN LOPEZ CASE HOMES OF SOME EMPLOYEES ALSO ENTERED IN PROBE FIRM HAD 1STHALF LOSS BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL WOLFSBURG GERMANY GERMAN INVESTIGATORS AND POLICE SEARCHED VOLKSWAGEN AG'S OFFICES AND THE HOMES OF SOME VW EMPLOYEES LOOKING FOR EVIDENCE IN THE ALLEGED INDUSTRIAL ESPIONAGE CASE INVOLVING J IGNACIO LOPEZ DE ARRIORTUA THE INVESTIGATORS WENT THROUGH DESKS FILE CABINETS AND COMPUTER RECORDS BOXES OF MATERIAL WERE PACKED AND SENT TO THE PUBLIC PROSECUTOR'S OFFICE IN DARMSTADT THE COORDINATED SEARCH WAS ANOTHER BLOW TO THE IMAGE OF EUROPE'S LARGEST CAR MAKER WHICH YESTERDAY REPORTED A LOSS FOR THE FIRST HALF OF THE YEAR THE CONTROVERSY SURROUNDING MR LOPEZ WHOM GENERAL MOTORS CORP HAS ACCUSED OF STEALING DOCUMENTS WHEN HE JUMPED TO VW IN MARCH THREATENS TO ENGULF VW'S MANAGEMENT WE HAD LISTS CONCRETELY DETAILING WHAT WE WANTED TO FIND AND WHERE TO POSSIBLY LOOK FOR IT SAID THOMAS SEIFFERT HEAD OF THE ECONOMIC CRIME DIVISION AT THE DARMSTADT PROSECUTOR'S OFFICE MR SEIFFERT SAID TESTIMONY TAKEN IN THE PAST FEW WEEKS WAS USED TO PINPOINT WHERE IN THE SPRAWLING VW COMPLEX EVIDENCE MIGHT BE FOUND THE PROSECUTORS OFFICE SAID EIGHT DIFFERENT VW SITES WERE SEARCHED BUT DECLINED TO SAY WHOSE HOMES WERE TARGETED PROSECUTORS SAY IT MAY TAKE WEEKS TO SIFT THROUGH THE MATERIAL AND THERE IS CERTAINLY THE CHANCE THEY WILL FIND NOTHING TO IMPLICATE MR LOPEZ NO CHARGES HAVE BEEN FILED IN THE CASE SO FAR A VW SPOKESMAN TRIED TO PUT A POSITIVE SPIN ON THE SUDDEN APPEARANCE OF THE INVESTIGATORS SAYING THE AUTO MAKER WELCOMES THE APPARENT PROGRESS BEING MADE BY THE PUBLIC PROSECUTORS IN THEIR INVESTIGATION INCLUDING THE PROGRESS MADE HERE IN WOLFSBURG WHERE THE COMPANY IS BASED BUT THE SEARCH SEEMED TO DARKEN THE CLOUD OF SUSPICION HANGING OVER MR LOPEZ PROSECUTORS HAD TO SHOW A GERMAN JUDGE AN ITEMIZED LIST OF EVIDENCE THEY EXPECTED TO FIND AT VW TO GET THE NECESSARY SEARCH WARRANT NEITHER THE PROSECUTORS NOR VW WOULD CONFIRM WHETHER THE OFFICE OF VW CHAIRMAN FERDINAND PIECH WAS SEARCHED MR SEIFFERT STRESSED THAT THE INVESTIGATION HAS NOT BEEN EXPANDED TO INCLUDE MR PIECH AS A SUSPECT THAT POSSIBILITY HAS NOT HOWEVER BEEN RULED OUT ACCORDING TO THE VW SPOKESMAN INVESTIGATORS SEARCHED THE COMPANY'S PURCHASING DIVISION INCLUDING MR LOPEZ'S OFFICE THEY ALSO SEARCHED A VW GUEST HOUSE IN WOLFSBURG WHERE MR LOPEZ TOLD PROSECUTORS IN A WRITTEN STATEMENT THAT HE SUPERVISED SHREDDING OF GM DOCUMENTS TO PREVENT THEM FROM INADVERTENTLY FALLING INTO VW HANDS GM HAD REQUESTED THE RETURN OF ANY DOCUMENTS BEFORE THE SHREDDING TOOK PLACE COMMENTING ON THE SEARCH GM SAID WE ASSUME THAT THE INVESTIGATING AUTHORITIES DO NOT TAKE SUCH ACTION WITHOUT HAVING STRONG REASONS FOR DOING SO MEANWHILE VW POSTED A FIRSTHALF LOSS OF 160 BILLION MARKS 9497 MILLION COMPARED WITH A PROFIT OF 445 MILLION MARKS A YEAR EARLIER SALES FELL 12 TO 384 BILLION MARKS FROM 4375 BILLION MARKS WORLDWIDE PRODUCTION IN THE FIRST HALF DECLINED 19 TO 15 MILLION VEHICLES WITH DELIVERIES DOWN 13 TO 16 MILLION VEHICLES IN AN INTERVIEW TO BE PUBLISHED TODAY IN THE NEWSPAPER FRANKFURTER ALLGEMEINE ZEITUNG MR PIECH SAID HE COULDN'T RULE OUT THE POSSIBILITY THAT VW MIGHT OMIT ITS DIVIDEND THIS YEAR LAST YEAR VW CUT ITS DIVIDEND ON REGULAR SHARES TO TWO MARKS FROM 11 MARKS IN THE PREVIOUS YEAR 9308270119 930827 THE AMERICAS VENEZUELA AT A CROSSROADS A MARKET REVIVAL OR SOCIALISM REDUX BY CARLOS BALL CARACAS THE PEOPLE OF THIS ONCE PROSPEROUS CAPITAL CITY WAKE UP EVERY DAY IN FEAR NOT KNOWING WHAT DISASTROUS ECONOMIC OR POLITICAL NEWS THE CITY'S 11 DAILY NEWSPAPERS WILL CARRY ON THEIR FRONT PAGES THE IMPEACHMENT PROCESS OF SUSPENDED PRESIDENT CARLOS ANDRES PEREZ HAD BARELY BEGUN WHEN THE SUPREME COURT THIS MONTH ANNOUNCED THAT FORMER PRESIDENT JAIME LUSINCHI 19841989 WILL BE TRIED FOR EXACTLY THE SAME CRIME PINCHING CASH FROM A SECRET NATIONAL SECURITY FUND INTERIM PRESIDENT RAMON VELASQUEZ WAS SUPPORTED BY THE TWO MAIN POLITICAL PARTIES THE SOCIAL DEMOCRATS' ACCION DEMOCRATICA AD AND THE CHRISTIAN DEMOCRAT'S COPEI TO GIVE THE CARETAKER GOVERNMENT AN AURA OF HONESTY AFTER 20 YEARS OF EVER INCREASING CORRUPTION AND MISMANAGEMENT HOWEVER JUST BEFORE CONGRESS'S AUG 15 RECESS THEY PASSED A SPECIAL POWERS BILL ALLOWING MR VELASQUEZ TO RULE BY DECREE ON ECONOMIC MATTERS IN ORDER TO CREATE NEW TAXES AND INCREASE OLD ONES THIS AND OTHER MEASURES THAT SEEK TO REVERSE A POSITIVE TREND TOWARD OPENING VENEZUELA'S MARKET MAKE THE COMING DEC 5 PRESIDENTIAL ELECTION A MANDATE ON ECONOMIC REFORM WHAT NO POLITICIAN IN VENEZUELA CAN AVOID IS THE FACT THAT THE STATE IS BROKE GOVERNMENT OIL INCOME THAT REACHED 1700 PER CAPITA HAS TOPPLED TO 385 WHILE THE BULK OF THE POPULATION EARNS LESS THAN 300 PER MONTH WHY IS VENEZUELA BROKE FRANCISCO LAYRISSE APPOINTED BY PRESIDENT VELASQUEZ TO HEAD THE HUGE STATEOWNED CVG INDUSTRIAL COMPLEX ELECTRIC POWER IRON ORE STEEL AND ALUMINUM PRESENTED A REPORT EARLIER THIS MONTH SAYING THAT ALCASA A CVG UNIT LOSES 15000 PER HOUR AND THAT CVG WILL LOSE OVER 1 BILLION IN 1993 AMONG ITS PEARLS CVG OPERATES THE ONLY STEEL MILL STILL OWNED BY A GOVERNMENT IN LATIN AMERICA AND WHAT IS THE CARETAKER GOVERNMENT DOING ABOUT ITS WHITE ELEPHANTS AFTER CONSULTING WITH EVERY IMAGINABLE PRESSURE GROUP IT HAS FOUND HOW MUCH EASIER IT IS TO INCREASE TAXES THAN TO REDUCE EXPENDITURES THE EMERGENCY PROGRAM CONSISTS OF NEW AND HIGHER TAXES A FACESAVING 10 CUT IN SALARY FOR THE CABINET AND 35 TO 50 PAY RAISE TO THE MILITARY THE ONLY ONES THAT CAN STOP THE MUSIC AND END THE PARTY BY GIVING THE PRESIDENT SPECIAL POWERS TO RAISE TAXES CONGRESS IS DISTANCING ITSELF FROM THE PUBLIC RESENTMENT THOSE TAXES WILL GENERATE AND IT IS DOUBTFUL WHETHER A NEW NATIONAL SALES TAX TO BE PAID AT WHOLESALE LEVEL AND A NEW TAX ON CORPORATE ASSETS WILL SUPPLY THE INCOME NECESSARY TO KEEP THE CENTRAL GOVERNMENT FROM BANKRUPTCY A BANKRUPT TREASURY WOULD LIKELY ATTEMPT TO GRAB THE CENTRAL BANK RESERVES TO FILL THE HUGE 36 BILLION FISCAL SHORTAGE IN 1993 THIS WOULD CAUSE A STEEP DEVALUATION OF THE BOLIVAR AND THE PROBABLE RETURN TO EXCHANGE CONTROLS THE EFFECTS OF A DEVALUATION WOULD BE DEVASTATING SINCE INTEREST RATES ARE AT RECORD HIGHS MANY LARGE COMPANIES HAVE BEEN FORCED TO BORROW ABROAD IN DOLLARS PAYING BACK THOSE DOLLAR DEBTS IN DEVALUED BOLIVARS COULD BANKRUPT THESE FIRMS MEANWHILE SMALL AND MIDSIZED COMPANIES WHO HAVE BEEN RELYING ON SAVINGS BECAUSE THEY CAN'T AFFORD TO BORROW AT HOME OR ABROAD WOULD HAVE THOSE SAVINGS CUT SIGNIFICANTLY BY A DEVALUATION WHILE THE RESPECTED CENTRAL BANK PRESIDENT RUTH DE KRIVOY OPPOSES A DEVALUATION PARTICULARLY SINCE IT WOULD NULLIFY LAST YEAR'S EFFORTS TO MAKE THE CENTRAL BANK MORE INDEPENDENT MANY BUSINESS PEOPLE NOW FEAR IT'S INEVITABLE ABOUT THE ONLY THING THAT COULD FORESTALL A DEVALUATION WOULD BE A DRAMATIC LIBERALIZATION OF VENEZUELAN MARKETS HOWEVER THE VENEZUELAN POLITICALBUSINESSUNION NOMENKLATURA STRONGLY OPPOSE REFORMS THAT WOULD DAMAGE THEIR PRIVILEGED STATUS THE NEW AGRICULTURAL MINISTER HAS LISTENED TO THE COMPLAINTS OF RICH FARMERS AND CATTLEMEN AND PROPOSES TO REVERSE THE GREAT STRIDES MADE TOWARD A MARKET ECONOMY IN FOODSTUFFS BY FORMER MINISTER JONATHAN COLES NEW RESTRICTIONS ON 209 KEY IMPORTS WILL BECOME EFFECTIVE SEPTEMBER 21 WHEN IMPORTED GOODS AS DIVERSE AS CEMENT RICE AUTO PARTS FERTILIZERS TOYS AND DETERGENTS WILL HAVE TO BE REGISTERED AND APPROVED BY A BRAND NEW GOVERNMENT BUREAUCRACY THE AUTONOMOUS CERTIFICATION AND NORMS SERVICE THE BANKING SYSTEM CONTINUES TO DEMAND PROTECTION FROM EXTERNAL COMPETITION THE ONLY VOICE IN FAVOR OF COMPETITION IN THE SECTOR IS OSCAR GARCIA MENDOZA PRESIDENT OF BANCO VENEZOLANO DE CREDITO HE POINTS OUT THAT THE NET WORTH OF THE VENEZUELAN BANKING SYSTEM HAS DROPPED TO 12 BILLION IN 1992 FROM 18 BILLION IN 1982 WITH THE RESULT THAT A POOL OF ALL VENEZUELAN BANKS COULD NOT LEGALLY FINANCE MORE THAN 120 MILLION OF THE 650 MILLION INVESTMENT PROGRAM REQUIRED THIS YEAR BY THE NEWLY PRIVATIZED VENEZUELAN TELEPHONE COMPANY EVEN IF THE ECONOMY DOES HOLD TOGETHER UNTIL THE ELECTIONS THE SIGNS ON THE CAMPAIGN TRAIL ARE NOT VERY PROMISING FORMER PRESIDENT RAFAEL CALDERA FOUNDER OF COPEI BUT REJECTED BY HIS OWN PARTY LEADS THE POLLS WITH THE SUPPORT OF HALF A DOZEN MARXIST GROUPS FROM ACCION DEMOCRATICA BREAKAWAYS TO THE OLD VENEZUELAN COMMUNIST PARTY ALL OF WHOM SEE IN THIS 77YEAR OLD MAN SALVATION FROM EXTINCTION AND THE ONLY CHANCE THEY HAVE TO SHARE THE GOODIES OF POWER CALDERA IS SINGING A POPULIST SONG AND WILLING TO EMBRACE ANY CAUSE THAT CAN CARRY HIM BACK TO THE PRESIDENTIAL PALACE SOME FIVE POINTS BEHIND IN THE POLLS IS THE FORMER GOVERNOR OF ZULIA STATE THE SECOND MOST POPULOUS JURISDICTION OSWALDO ALVAREZ PAZ WHILE MR ALVAREZ IS NOT A FAVORITE OF THE OLD COPEI PARTY HACKS HE ENJOYS THE SPIRITED SUPPORT OF A GROWING NUMBER OF INDEPENDENTS WHO SEE IN HIM THE ONLY HOPE FOR THE COUNTRY HIS RECORD AS GOVERNOR OF ZULIA IS OUTSTANDING MANAGING TO TURN IT AROUND BY DECENTRALIZING GOVERNMENT AND MAKING IT MORE RESPONSIVE TO THE CITIZENS WHILE MANY SERVICES WERE PRIVATIZED GOVERNORS IN THE US COULD LEARN FROM MR ALVAREZ'S SUCCESSFUL DETACHMENT OF THE MARACAIBO AIRPORT FROM THE CENTRAL GOVERNMENT'S GRASP AND ITS IMMEDIATE PRIVATIZATION SERVICE IS VASTLY IMPROVED AND SO ARE GOVERNMENT REVENUES FROM THE AIRPORT OPERATIONS INVESTMENT HAS BEEN POURING INTO THE STATE LEADING TO THE LOWEST UNEMPLOYMENT RATE IN THE COUNTRY 5 AND MR ALVAREZ'S REELECTION WITH THE LARGEST ELECTORAL MAJORITY IN THE COUNTRY THE BIG QUESTION IN THE NEXT PRESIDENTIAL ELECTION IS WHETHER STATISM WHICH HAS IMPOVERISHED AND CORRUPTED VENEZUELA WILL SUCCUMB IN DECEMBER OR WILL BE REVIVED BY RAFAEL CALDERA THE NEXT GOVERNMENT WILL OVERSEE A DRAMATIC TRANSITION EITHER PULLING THE COUNTRY DEEPER INTO DARK CORRUPT STATE CONTROLS OR LEADING VENEZUELA INTO AN OPEN MODERN AND HIGHLY COMPETITIVE NEW SOCIETY MR BALL FORMER EDITORINCHIEF OF EL DIARIO DE CARACAS NOW HEADS AIPE A SYNDICATION AND ECONOMIC NEWS SERVICE FOR SPANISHLANGUAGE NEWSPAPERS 9308270118 930827 ABREAST OF THE MARKET DOW SLIPS 391 AS GERMANY DASHES HOPE FOR FAST EUROPEAN RECOVERY BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS ENDED MIXED AFTER THE BUNDESBANK DASHED EUROPEAN HOPES FOR A SWIFT ECONOMIC RECOVERY THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 391 POINTS TO 364818 IN MODERATE TRADING BUT STANDARD & POOR'S 500STOCK INDEX ROSE 091 POINT TO 46104 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 048 TO 25583 IT WAS THE THIRD CONSECUTIVE RECORD FOR BOTH STOCK MARKET MEASURES ANALYSTS SAID STOCKS WERE SUPPORTED BY A SHARP DECLINE IN INTEREST RATES THAT SENT THE YIELD ON THE TREASURY'S 30YEAR BOND TUMBLING TO 608 FROM 616 WEDNESDAY THE INTEREST RATE DROP DREW INVESTORS TO HIGHERYIELDING UTILITY STOCKS IN PARTICULAR THE DOW JONES UTILITY AVERAGE WHICH IS CONSIDERED A LEADING INDICATOR OF STOCK PRICES GAINED 020 TO 25475 YET ANOTHER RECORD ADVANCING ISSUES OUTPACED DECLINERS 1029 TO 914 VOLUME ON THE BIG BOARD DROPPED TO 247804400 SHARES FROM 301621830 SHARES WEDNESDAY STOCK MARKET STRATEGISTS SAID STOCKS WERE PRESSURED INITIALLY BY NEWS THAT THE BUNDESBANK LEFT ITS MAIN INTEREST RATES UNCHANGED DESPITE INTENSE SPECULATION THIS WEEK THAT THE GERMAN CENTRAL BANK WOULD LOWER THE DISCOUNT RATE THE BUNDESBANK'S MOVE DELAYS THE INEVITABLE ECONOMIC RECOVERY IN EUROPE SAID MICHAEL METZ INVESTMENT STRATEGIST AT OPPENHEIMER MR METZ ARGUED THAT RISING EXPORTS ARE ONE OF THE MAIN INGREDIENTS IN THE PROFIT STORY THAT WALL STREET IS SPINNING THIS YEAR BUT IF THE EUROPEAN ECONOMIES ARE STILL STUCK IN A RECESSION PROSPECTS FOR A JUMP IN EXPORTS ARE DIM AS A RESULT INVESTORS STARTED UNLOADING MANY OF THE CYCLICAL STOCKS THAT HAD FARED SO WELL THIS WEEK A MORGAN STANLEY INDEX OF THESE STOCKS FELL 026 POINT TO 28390 WHILE THE INVESTMENT BANK'S BAROMETER OF CONSUMER STOCKS GAINED 036 TO 18905 THOUGH THE DROP IN INTEREST RATES HELPED THE DOW JONES INDUSTRIALS RECOVER IN THE AFTERNOON THE GAINS WERE SHORTLIVED A ROUT IN OVERTHECOUNTER TECHNOLOGY STOCKS CAST A CLOUD OVER THE MARKET DRAGGING THE INDUSTRIALS LOWER LATE IN THE DAY THE SELLING WHICH WAS TRIGGERED BY POOR THIRDQUARTER EARNINGS FROM NOVELL AND PRICECUTTING BY BORLAND INTERNATIONAL A SOFTWARE CONCERN SPREAD TO THE BIG BOARD TEXAS INSTRUMENTS SLID 1 7/8 TO 80 3/8 COMPAQ 3/4 TO 52 1/2 HEWLETTPACKARD 1 1/8 TO 73 7/8 AND NATIONAL SEMICONDUCTOR 1/2 TO 18 A LOT OF TRADERS ARE BEING TRAUMATIZED BY THE BLOOD BATH IN HIGHTECH STOCKS SAID MR METZ DRUG STOCKS SPRANG TO LIFE AS INVESTORS SEARCHED FOR UNDERVALUED SECTORS OF THE MARKET PFIZER SOARED 1 3/8 TO 63 3/8 JOHNSON & JOHNSON 5/8 TO 40 3/8 SCHERINGPLOUGH 7/8 TO 60 7/8 AND MERCK 7/8 TO 32 5/8 BUT PRECIOUS METALS STOCKS LOST THEIR LUSTER AS GOLD PRICES PLUNGED HOMESTAKE MINING SANK 7/8 TO 19 NEWMONT MINING 1 1/4 TO 50 AND AMERICAN BARRICK 1 3/8 TO 25 STOCKS OF BABY BELLS ROSE FOR THE SECOND STRAIGHT DAY CONTINUING TO RALLY ON A FEDERAL COURT RULING GIVING BELL ATLANTIC A GREEN LIGHT TO ENTER THE VIDEO PROGRAMMING BUSINESS BELL ATLANTIC ADDED 1/4 TO 61 1/4 BELLSOUTH 1 1/8 TO 57 1/2 PACIFIC TELESIS 3/4 TO 53 3/4 AND SOUTHWESTERN BELL 1 3/4 TO 44 1/4 SYNTEX JUMPED 1 1/4 TO 18 3/8 THE DRUG COMPANY'S FOURTHQUARTER PROFIT SWELLED TO 60 CENTS A SHARE FROM 41 CENTS A SHARE A YEAR AGO CBS SLUMPED 3 5/8 TO 247 THE TELEVISION CONCERN HAS APPARENTLY SURRENDERED IN ITS UPHILL STRUGGLE TO FORCE MAJOR CABLE OPERATORS TO PAY NEW FEES FOR AIRING THE PROGRAMMING OF CBSOWNED TELEVISION STATIONS KELLOGG SLIPPED 3/8 TO 51 3/4 KIDDER PEABODY ANALYST DAVID RABINOWITZ DOWNGRADED HIS INVESTMENT RATING ON THE CEREAL CONCERN TO UNDERPERFORM FROM NEUTRAL HE SAID HIS ACTION WAS PROMPTED BY DETERIORATING CONDITIONS IN THE COMPANY'S DOMESTIC CEREAL BUSINESS BJ SERVICES DROPPED 1 7/8 TO 24 1/8 THE COMPANY SAID INDUSTRY ANALYSTS ARE LOWERING THEIR EXPECTATIONS FOR THE COMPANY'S FISCAL FOURTH QUARTER BECAUSE OF WEAKERTHANEXPECTED DRILLING INDUSTRY CONDITIONS THE COMPANY SAID IT NOW EXPECTS FOURTH QUARTER EARNINGS RANGING FROM 30 CENTS A SHARE TO 35 CENTS AFTER CERTAIN ADJUSTMENTS AND NONRECURRING ITEMS GENEVA STEEL FELL 1 TO 11 7/8 THE COMPANY SAID THE UNITED STEELWORKERS UNION HAS TEMPORARILY SUSPENDED LABOR NEGOTIATIONS WITH IT THE CURRENT LABOR AGREEMENT EXPIRES TUESDAY THE AMERICAN STOCK EXCHANGE'S MARKET VALUE INDEX SLIPPED 022 TO 45420 THERE WERE 293 ADVANCERS AND 273 DECLINERS HADSON ENERGY RESOURCES ROSE 3/8 TO 14 3/4 ON THE AMEX THE COMPANY SAID IT SIGNED A DEFINITIVE AGREEMENT TO BE ACQUIRED BY APACHE CORP IN A TRANSACTION VALUED AT ABOUT 30 MILLION APACHE CURRENTLY HAS A 68 STAKE IN HADSON 9308270117 930827 FLUOR UNIT GETS CONTRACT IRVINE CALIF FLUOR CORP'S FLUOR DANIEL INC UNIT SAID IT RECEIVED A CONTRACT FROM UNION CARBIDE CHEMICALS & PLASTICS CO TO PROVIDE CONSTRUCTION SERVICES TO EXPAND A POLYETHYLENE PLANT UNION CARBIDE CHEMICALS IS A UNIT OF UNION CARBIDE CORP DANBURY CONN TERMS WEREN'T DISCLOSED THE PLANT IS IN TAFT LA 13 MILES WEST OF NEW ORLEANS AIRPORT THE EXPANSION SCHEDULED FOR COMPLETION IN MARCH 1995 WILL BOOST PRODUCTION BY 650 MILLION POUNDS OF POLYETHYLENE A YEAR TO 17 BILLION POUNDS A YEAR FLUOR IS AN INTERNATIONAL ENGINEERING CONSTRUCTION MAINTENANCE AND TECHNICAL SERVICES COMPANY 9308270116 930827 CORRECTIONS & AMPLIFICATIONS TELECOM CORP OF NEW ZEALAND SAID ITS RESTRUCTURING HASN'T BEEN PUT ON HOLD BY A RECENT COURT INJUNCTION THE INJUNCTION STATES THAT TELECOM CAN'T DECLARE CERTAIN PEOPLE SURPLUS UNLESS IT HAS FOLLOWED A SPECIFIC CONSULTATION PROCESS WITH A UNION AN ARTICLE WEDNESDAY INCORRECTLY REPORTED THAT THE INJUNCTION WOULD TEMPORARILY PREVENT TELECOM FROM LAYING OFF STAFF IT CONSIDERS SURPLUS AND FROM HIRING EMANUEL GERARD OF GERARD KLAUER MATTISON & CO WHICH HAS UNDERWRITTEN OFFERINGS OF PEOPLE'S CHOICE TV CORP PREFERRED ENTERTAINMENT INC AND ACS ENTERPRISES INC EXPECTS ACS TO PRODUCE POSITIVE EARNINGS IN 1994 THE OTC FOCUS COLUMN MONDAY INCORRECTLY STATED THAT MR GERARD EXPECTED ALL THREE CONCERNS TO POST PROFITS IN 1994 9308270115 930827 LEISURE & ARTS A BIGWIG IN THE JUGGLING BIZ BY SUSAN SUBTLE DINTENFASS AND ANDY MEISLER NEW YORK AT BRIAN DUBE INC MANUFACTURER AND PURVEYOR OF FINE JUGGLING EQUIPMENT SOME THINGS ARE IMMEDIATELY APPARENT PRODUCT TESTING IS KEY RESEARCH AND DEVELOPMENT ARE NOT BEING STINTED AND THE MERCHANDISE IS MOVING WELL IN THE HANDS OF TALENTED EMPLOYEES DAYGLO STAGE BALLS FORM INTRICATE PATTERNS BETWEEN THE FLOOR AND CEILING CUSTOM EUROPEAN CLUBS SIX AT A TIME PASS THROUGH THE AIR BETWEEN TWO HIGHLY SKILLED THOUGH SERIOUSLY TRANCEDOUT INDIVIDUALS MULTICOLORED AIRFLITE RINGS ARE BEING THROWN ABOUT IN THE SAME MESMERIZING MANNER MR DUBE A SLIM TACITURN 41YEAROLD NEW YORKER IS A CENTRAL FIGURE IN THE CURRENT MINIBOOMLET OF JUGGLING IN AMERICA OR HAVEN'T YOU NOTICED IT IF YOU LOOK CLOSELY MANY OF THE ANNOYING MIMES DOWN AT YOUR LOCAL OLDE TOWNE TOURIST MAGNET HAVE BEEN REPLACED BY HATPASSING BRIAN DUBE INC SELLS FOUR EXCELLENT MODELS JUGGLERS CAPABLE OF TELLING A JOKE OR TWO EVEN WHILE PERFORMING THE TRICKY ONE BALL AROUND OR FOOT CATCH THEN THERE IS THE THE NEW VAUDEVILLE A THEATRICAL MOVEMENT THAT HAS REVIVED THE POPULARITY OF TRADITIONAL CENTURIESOLD FEATS OF STRENGTH NERVE AND COORDINATION AMONG MR DUBE'S STEADY CUSTOMERS ARE VIRTUALLY ALL OF THE BETTERKNOWN JUGGLERS AND JUGGLEREMPLOYING ORGANIZATIONS ASSOCIATED WITH THIS PHENOMENON INCLUDING BILL IRWIN PENN GILLETTE THE FLYING KARAMAZOV BROTHERS RINGLING BROS AND BARNUM & BAILEY CIRCUS CIRQUE DU SOLEIL BIG APPLE CIRCUS AND SAN FRANCISCO'S PICKLE FAMILY CIRCUS ACCORDING TO HOVEY BURGESS A CIRCUSARTS HISTORIAN AND PERFORMER BRIAN IS THE PREEMINENT JUGGLINGPROP DEALER IN THE WORLD TODAY BRIAN'S MOLDED PLASTIC RINGS ARE GREAT AND HIS POLYETHYLENECOATED CLUBS WERE A REAL BREAKTHROUGH I'M ALSO VERY PARTIAL TO HIS SILICON BALLS SILICON BALLS ARE AMONG THE PRODUCTSIN VARIOUS STAGES OF ASSEMBLY AND IN ALL THE BRIGHTEST COLORS OF THE RAINBOW SCATTERED AROUND THE LOWER BROADWAY LOFT HEADQUARTERS OF BRIAN DUBE INC OF WHICH MR DUBE IS SOLE OWNER IN ADDITION TO THE AFOREMENTIONED CLUBS RINGS AND BALLS THERE ARE THE STACKING CIGAR BOXES 24FOOT TRICK ROPES ROLA BOLAS BALANCE BOARDS STANDARD SCULPTURE BALLOONS AND SOME SHARPLOOKING BUT AMAZINGLY DULLFEELING JUGGLING KNIVES OTHER PRODUCTS INCLUDE DUBEPUBLISHED JUGGLING BOOKS INCLUDING THE SEMINAL THE ART OF JUGGLING AND THE INDISPENSABLE KNIFE THROWING AND VARIOUS JUGGLING INSTRUCTIONAL VIDEOS THIS IS NOT ENOUGH FOR MR DUBE HE CONCEDES GRUDGINGLY THAT HE IS WORKING ON NEW IMPROVED PRODUCTS BUT HE WON'T TALK ABOUT THEM I WOULDN'T WANT TO GIVE MY COMPETITORS ANY INFORMATION HE IS EQUALLY TIGHTLIPPED ABOUT THE AMOUNT OF BUSINESS THAT BRIAN DUBE INC DID LAST YEAR I DON'T DISCLOSE THAT HE SAYS ALTHOUGH HE DOES EMPLOY AT LEAST TWO FULLTIME AND TWO PARTTIME WORKERS INCLUDING HIS FATHER ALBERIE TO ASSEMBLE AND SHIP TONS OF JUGGLING HARDWARE NEIL STAMMER THE OWNER OF JUGGLING CAPITOL A JUGGLING SUPPLY STORE IN SAN FRANCISCO ESTIMATES THAT HE SELLS MORE THAN 100000 OF DUBE MERCHANDISE A YEAR IF MR DUBE WEREN'T MR DUBE HE WOULD BE A CUSTOMER OF BRIAN DUBE INC SINCE HE IS AN ACCOMPLISHED JUGGLER ALTHOUGH HE'S NEVER PERFORMED PROFESSIONALLY I'M TOO MUCH OF A PERFECTIONIST I WOULDN'T BE PLEASED PRESENTING A ROUTINE THAT I HADN'T SPENT ALL MY TIME WORKING ON UNLIKE ANTHONY GATTO A LOYAL DUBE CLIENT HAILED AS THE WORLD'S GREATEST TECHNICAL JUGGLER HE CAN KEEP SEVEN CLUBS SEVEN FLAMING TORCHES OR 10 RINGS IN THE AIR AT THE SAME TIME AND WHO HAS BEEN JUGGLING SERIOUSLY SINCE THE AGE OF FIVE MR DUBE CAME TO HIS CALLING RELATIVELY LATE IN LIFE BORN IN MAINE AND RAISED IN BRISTOL CONN HE DROPPED OUT AFTER HIS JUNIOR YEAR AT NEW YORK UNIVERSITY WHERE HE WAS STUDYING SCIENCE AND MATHEMATICS TO MAKE LEATHER BELTS AND BRIEFCASES AND SELL THEM ON THE STREETS OF MANHATTAN IN 1975 TO ESCAPE FROM THE PRESSURES OF BUSINESS HE WENT TO A JUGGLING WORKSHOP FINDING IT DIFFICULT TO OBTAIN JUST THE RIGHT KIND OF EQUIPMENT HE SET ABOUT MAKING SOME THAT MET HIS OWN HIGH STANDARDS IT WAS A NATURAL STEP TO BEGIN SELLING IT TO OTHERS HE FORMED HIS COMPANY THAT SAME YEAR BUT IT WASN'T UNTIL THE MID'80S THAT BUSINESS BEGAN TO TAKE OFF THE STREET PERFORMERS AND NEW VAUDEVILLIANS WERE ONLY PART OF IT JUGGLING BECAME A FAVORED RECREATION OF STRESSEDOUT TECHIES AND IT STILL IS THERE ARE FLOURISHING JUGGLING COMMUNITIES AT MICROSOFT CORP AMERICAN TELEPHONE & TELEGRAPH CO'S BELL LABS AND STANFORD UNIVERSITY AND ADHERENTS AT INTERNATIONAL BUSINESS MACHINES CORP ARE CURRENTLY TRYING TO BUILD A ROBOT THAT JUGGLES RECENTLY REPORTS MR DUBE MESSAGES HAVE BEGUN CRACKLING ACROSS A NATIONWIDE COMPUTER BULLETIN BOARD DEVOTED TO THE SUBJECT FOR SOME REASON GERMANY AND ENGLAND WHERE MR DUBE ONCE SHIPPED AN ORDER FOR 20000 BEANBAGS HAVE ALSO BECOME JUGGLING HOTBEDS JAPANESE PILGRIMS VISIT COMPANY HEADQUARTERS SPORADICALLY AND MR DUBE PREDICTS WARILY THAT JAPAN COULD EXPLODE INTO JUGGLING FANATICISM AT ANY TIME BUT MR DUBE IS NOT SATISFIED DESPITE THE GROWTH IN HIS BUSINESS HE STILL FEELS HE HASN'T YET FOUND THE PROPER BALANCE BETWEEN ART AND MASS MARKETING ON THE ONE HAND HE SAYS I TRY TO DESIGN THINGS THAT PROFESSIONALS WON'T MIND USING BUT THAT ENTRYLEVEL JUGGLERS CAN USE TOO ON THE OTHER HAND THERE ARE HIGHER CAUSES THAN MAKING A SALES QUOTA ACCORDING TO THE CATALOG AVAILABLE BY CALLING 2129410060 FOR INSTANCE DUBE'S CUSTOM EUROPEAN CLUBS ARE ALL INDIVIDUALLY HAND ASSEMBLED AROUND A HARDWOOD DOWEL CORE FOR LINEAR RIGIDITY AT A STIFF 25 APIECE EACH SET IS PRECISELY MATCHED FOR BALANCE AND WEIGHT AND A GOOD THING TOO IF YOU DON'T GET THINGS TO WITHIN A GRAM SAYS MR DUBE HE NEED SAY NO MORE THE REST OF HIS SENTENCE HANGS OVER OUR HEADS INVISIBLE INTANGIBLE BUT WE'VE CAUGHT IT MS SUBTLE DINTENFASS AND MR MEISLER ARE FREELANCE WRITERS IN CALIFORNIA 9308270114 930827 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN FORMER SOUTH KOREAN PRESIDENTS ROH TAE WOO AND CHUN DOO HWAN DENIED BEING INVOLVED IN CORRUPTION WHILE IN OFFICE BUT OPPOSITION PARTIES DENOUNCED THEM AND CALLED FOR AN ANTIGRAFT PANEL TO INVESTIGATE THE ALLEGED MISDEEDS MR ROH REFUSED TO ANSWER INVESTIGATORS' QUESTIONS ABOUT HIS ROLE IN A FIGHTERJET CONTRACT HE SAID THERE WERE NO GROUNDS FOR SUSPICION IN SEOUL'S DECISION IN 1991 TO CANCEL A 5 BILLION ORDER FOR F18 HORNETS MADE BY MCDONNELL DOUGLAS IN FAVOR OF GENERAL DYNAMICS F16 FALCONS OPPOSITION LEADERS CLAIM THE GOVERNMENT WAS BRIBED INTO SWITCHING ORDERS MR CHUN ANSWERED QUESTIONS ABOUT HIS ROLE IN A MULTIMILLIONDOLLAR DAM PROJECT BUT DENIED WRONGDOING THE ANTIGRAFT PANEL IS INVESTIGATING WHETHER THE PROJECT WAS INTENDED TO LINE THE POCKETS OF MR CHUN'S COLLEAGUES MR CHUN SAID HE WAS TRYING TO DEFEND THE SOUTH FROM A SUSPECTED NORTH KOREAN PLAN TO UNLEASH A FLOOD ON THE SOUTH THE OPPOSITION DEMOCRATIC PARTY ACCUSED THE LEADERS OF CONCEALING THE TRUTH AND SAID INVESTIGATORS SHOULD TRY HARDER TO UNCOVER WRONGDOING HONG KONG AWARDED A 221 MILLION CONTRACT FOR RECLAMATION WORK RELATED TO THE COLONY'S PLANNED NEW AIRPORT TO A FRENCHJAPANESE CONSORTIUM AFTER MONTHS OF HAGGLING BETWEEN CHINESE AND BRITISH AUTHORITIES THE CONSORTIUM COMPRISES DRAGAGES & TRAVAUX PUBLICS AND BACHY SOLETANCHE GROUP BOTH OF FRANCE AND JAPAN'S PENTA OCEAN CONSTRUCTION CO CHINA WHICH TAKES OVER HONG KONG IN 1997 HAS BALKED AT FINANCING PLANS FOR THE AIRPORT EXPECTED TO COST 212 BILLION RUSSIA'S FUEL AND ENERGY MINISTER DENIED THAT MOSCOW HAD RESTRICTED THE RIGHTS OF WESTERN JOINT VENTURES TO EXPORT OIL AND GAS THEY PRODUCED IN RECENT MONTHS IN JUNE SEVERAL VENTURES COMPLAINED THAT RUSSIA'S PIPELINE MONOPOLY HAD CUT OFF THEIR EXPORTS REPORTEDLY ON ORDERS FROM MOSCOW LAWS TO CLARIFY THE STRUCTURE OF RUSSIA'S ENERGY INDUSTRY AND OPPORTUNITIES FOR FOREIGN INVESTMENT IN THE SECTOR ARE UNDER DISCUSSION SEPARATELY RUSSIA PLANNED TO CUT IN HALF ITS DELIVERIES OF NATURAL GAS TO UKRAINE TO FORCE IT TO REPAY MORE THAN 609 MILLION IN DEBT ITALIAN OFFICIALS REJECTED SUGGESTIONS THAT HUGE FIRES RAGING FROM SICILY TO CENTRAL ITALY ARE PART OF A CRIMINAL PLOT SOME REGIONAL OFFICIALS HAVE CLAIMED THAT A TERRORISM OF FIRE HAD BEEN LAUNCHED FOLLOWING A SPATE OF BOMBINGS IN MAJOR CITIES FIREFIGHTERS ON THE SLOPES OF MOUNT VESUVIUS STRUGGLED YESTERDAY TO KEEP A BLAZE FROM SPREADING TO A FIREWORKS FACTORY AND HOUSES SOME 173000 ACRES OF WOOD AND BRUSH HAVE BEEN DESTROYED BY FIRE THIS YEAR ITALY SAYS ARSONISTS SET MOST OF THE 10000 FIRES IN THE PAST TWO MONTHS DENMARK WILL GIVE ITS SHIPYARDS 869 MILLION IN SUBSIDIES UNDER AN AGREEMENT WITH MAIN OPPOSITION PARTIES IN PARLIAMENT THE ACCORD PROVIDES FOR LOWINTEREST LOANS TO SHIPPING LINES THAT ORDER VESSELS FROM DANISH BUILDERS AND IT BRINGS DENMARK IN LINE WITH SUBSIDY LEVELS ALLOWED BY THE EUROPEAN COMMUNITY UNEMPLOYMENT IN THE DANISH SHIPYARDS HAS RISEN IN THE PAST SIX MONTHS BECAUSE OF DECLINING ORDERS DANISH SHIPYARDS ARE EXPECTED TO HAVE 116 BILLION IN ORDERS IN 1993 SOUTH KOREA'S GOVERNMENT AND PRIVATE INDUSTRIES PLAN TO RAISE 4 MILLION NEXT YEAR TO FUND INDUSTRIAL AND TECHNOLOGICAL COOPERATION WITH THE US THE FUNDS WILL BE ADDED TO THE 300000 ALREADY RAISED SEOUL PLANS TO COLLECT 10 MILLION FOR THE FUND BY 1997 SOUTH KOREAN ENTERPRISES THAT INTRODUCE TECHNOLOGIES FROM THE US WOULD RECEIVE AS MUCH AS 100000 EACH IN INTERESTFREE LOANS FROM THE FUND SOUTH KOREA'S TRADE MINISTER SUGGESTED SUCH AN INDUSTRIAL ALLIANCE BETWEEN THE TWO NATIONS DURING HIS VISIT TO THE US IN APRIL MALAYSIAN SECURITIES REGULATORS ARE SEEKING TO PROSECUTE AT LEAST TWO PEOPLE FOR ALLEGED SECURITIES LAW VIOLATIONS IN TRADING OF UNION PAPER HOLDINGS BHD SHARES BUT THE ATTORNEY GENERAL DEFERRED THE REQUEST PENDING COMPLETION OF HIS OWN PROCEEDINGS AGAINST ONE OF THE TWO THE IMMINENT LEGAL ACTION IS THE LATEST DEVELOPMENT IN THE CONTROVERSY SURROUNDING UNION PAPER WHOSE SHARES SOARED THIS YEAR ON SPECULATION OF AN IMPENDING TAKEOVER THE STOCK WAS SUSPENDED JUNE 29 AMID ALLEGATIONS OF ILLEGAL SHORTSELLING AND MANIPULATION OF TRADING THE SECURITIES COMMISSION'S REQUEST IS ITS FIRST ATTEMPT TO PROSECUTE VIOLATIONS OF SECURITIES LAWS SINCE IT WAS FORGED THIS YEAR WITH BEEFEDUP POWERS SEPARATELY MALAYSIAN AUTHORITIES CLEARED DATUK SERI S SAMY VELLU MINISTER OF ENERGY TELECOMMUNICATIONS AND POST OF WRONGDOING IN THE DIVERSION OF A GOVERNMENT ALLOTMENT OF 10 MILLION SHARES IN TELEKOM MALAYSIA BHD THE CZECH AND RUSSIAN PRESIDENTS SIGNED A FRIENDSHIP TREATY 25 YEARS AFTER A SOVIETLED INVASION OF CZECHOSLOVAKIA CONDEMNING THE UNACCEPTABLE FORCE THE SOVIETS USED TO QUASH THE 1968 PRAGUE SPRING REFORMS WORKERS AT NORWAY'S MINT STOPPED PRINTING MONEY FOR THE GOVERNMENT DEMANDING BETTER PAY AND WORKING HOURS THE PRINT SHOP PRODUCES ALL OF THE COUNTRY'S PAPER CURRENCY 9308270113 930827 LEISURE & ARTS BOOKSHELF BIOGRAPHY OF A BLOOMSBURY PATRON BY MIRANDA SEYMOUR LADY OTTOLINE MORRELL 18731938 WAS A WOMAN WHO PUT FRIENDSHIP AND THE NURTURING OF GENIUS ABOVE ALL ELSE TOO OFTEN THOUGH THE GENIUSES SHE CODDLED WERE STUDIES IN INGRATITUDE MIRANDA SEYMOUR'S NEW BIOGRAPHY OTTOLINE MORRELL LIFE ON THE GRAND SCALE FARRAR STRAUS & GIROUX 451 PAGES 30 EVEN SUPPLIES AN APPENDIX LISTING THE NOVELS IN WHICH A CHARACTER MODELED ON LADY OTTOLINE APPEARS USUALLY AS THE BUTT OF SATIRE IT IS MS SEYMOUR'S PURPOSE TO RESCUE HER HEROINE'S REPUTATION FROM THE KEEPING OF SUCH UNGRATEFUL FRIENDS TO SHOW HER NOT JUST AS A HOSTESS OR AS THE MISTRESS OF BERTRAND RUSSELL AND OTHER GREAT OR NEARLY GREAT MEN BUT AS AN IMPORTANT FIGURE IN HER OWN RIGHT IN THE HISTORY OF THE PERIOD SHE ONLY PARTLY SUCCEEDS A STRIKING SIXFOOT REDHEAD OTTOLINE ALSO SUFFERED FROM SHYNESS ILLHEALTH RELIGIOUS HIGHMINDEDNESS AND BIZARRE SARTORIAL TASTES INCLUDING STRANGE HEADGEAR AND SELFDESIGNED GOWNS AFTER A BRIEF AFFAIR WITH THE FASHIONABLE SWEDISH PHYSICIAN AND LATER MEMOIRIST AXEL MUNTHE SHE FOUND AN IMPROBABLE MATE IN PHILIP MORRELL WHOM SHE MARRIED IN 1902 AND WHOSE MALLEABLE CHARACTER SUITED HER PURPOSES ADMIRABLY AS THE HALFSISTER OF THE DUKE OF PORTLAND LADY OTTOLINE WAS A BRILLIANT MATCH FOR THE MIDDLECLASS MORRELLS WHO WERE OXFORDSHIRE LAWYERS AND STAUNCH TORIES LADY OTTOLINE PUSHED THE FECKLESS PHILIP INTO RUNNING FOR PARLIAMENT AS A LIBERAL AND PROCEEDED TO BEGIN GATHERING AROUND HERSELF THE INCREASINGLY BOHEMIAN SALON FEATURING SUCH DIVERSE FIGURES AS HENRY JAMES ROGER FRY AND LOGAN PARSALL SMITH THAT BECAME THE GROUP KNOWN TO THE WORLD AS BLOOMSBURY BLOOMSBURY WAS THE DISTRICT OF LONDON IN WHICH THE MORRELLS LIVED FROM 1906 BUT IN ENGLISH INTELLECTUAL HISTORY THE WORD NOW STANDS FOR THE COTERIE TO WHICH OTTOLINE ACTED AS A MUNIFICENT PATRONESS NOT FINANCIALLY SHE NEVER HAD MUCH MONEY BY THE STANDARDS OF THE TIME BUT BY PROVIDING ACCOMMODATION AND OPPORTUNITIES FOR CONVERSATION ITS LEADING LIGHTS INCLUDED RUSSELL AND HIS FELLOW PHILOSOPHER GE MOORE THE CRITIC LYTTON STRACHEY THE ART THEORIST CLIVE BELL AND THE NOVELIST EM FORSTER THE BLOOMSBURY MANIFESTO IN SO FAR AS IT EXISTED WAS STATED IN MOORE'S PRINCIPIA ETHICA PERSONAL AFFECTIONS AND AESTHETIC ENJOYMENTS INCLUDE ALL THE GREATEST AND BY FAR THE GREATEST GOODS WE CAN IMAGINE THE PRINCIPLE WAS LATER RESTATED IN FORSTER'S FAMOUS REMARK WHICH MAY HAVE HAD PROFOUND CONSEQUENCES FOR THE HISTORY OF THE COLD WAR THAT IF I HAD TO CHOOSE BETWEEN BETRAYING MY COUNTRY AND BETRAYING MY FRIEND I HOPE I SHOULD HAVE THE GUTS TO BETRAY MY COUNTRY TO THEM ALL LOVE AND ART MADE AS IT GENERALLY DOES A HEADY MIXTURE THE DESIRE OF THE BLOOMSBURY SET TO REPLACE ETHICS WITH AESTHETICS WAS CONSCIOUSLY ICONOCLASTIC AND LED TO A REMARKABLE VARIETY OF AMOROUS PERMUTATIONS AMONG THE MEMBERS OF THE GROUP INTEGRITY AS MS SEYMOUR WRITES BECAME THE BLOOMSBURY SUBSTITUTE FOR MORALITY OF COURSE SUCH INTEGRITY HAD TO BE CONSISTENT WITH CAUSING A GREAT DEAL OF PAIN TO OTHERS DH LAWRENCE'S SAVAGE CARICATURE OF OTTOLINE AS HERMIONE RODDICE IN WOMEN IN LOVE IS ONE UNPLEASANT EXAMPLE BUT SHE SEEMS TO HAVE BEEN A WILLING PARTICIPANT BOTH IN THE ONGOING BLOOMSBURY DIALOGUE ABOUT OTHERS AND IN THE RATHER FARCICAL PLAY OF SEXUAL ADVENTURES TO SPEAK OF LOVE TRIANGLES IS AN UNDERSTATEMENT WE SEEM TO BE PERUSING A TEXTBOOK OF EMOTIONAL EUCLIDEAN GEOMETRY AT ONE POINT IN FAIRLY RAPID SUCCESSION PHILIP CONFESSES TO OTTOLINE THAT BOTH HIS MISTRESSES ARE PREGNANT AND RUSSELL THWARTS HER ATTEMPT TO ELICIT HIS SYMPATHY BY TELLING HER HE HAS FOUND A NEW WOMAN MEANWHILE OTTOLINE IS FRUSTRATED BY THE LACK OF INTEREST OF SIEGFRIED SASSOON THE SOLDIERPOET AND NEWLY MINTED PACIFIST IN HER SASSOON PREFERRED HIS FELLOW SOLDIERPOETS OTTOLINE HERSELF LATER HAD TO COPE WITH THE ADORATION OF BOTH DAME ETHEL SMYTH AND VIRGINIA WOOLF BUT IT WAS RUSSELL WHO WAS IF ANYONE WAS THE LOVE OF HER LIFE ALTHOUGH THE AFFAIR BETWEEN THEM WAS FAIRLY SHORT AND NOT HELPED BY RUSSELL'S GUM DISEASE THEIR FRIENDSHIP PRODUCED A VOLUMINOUS CORRESPONDENCE AS THEY WROTE TO EACH OTHER EVERY DAY FOR 27 YEARS AS MS SEYMOUR SAYS IN THIS FIRST BIOGRAPHY TO MAKE USE OF THAT ARCHIVE THEY WERE BOTH VICTORIANS AT HEART AND OTTOLINE'S RELIGIOUS FAITH MEANT MORE TO THE RELUCTANTLY ATHEISTIC RUSSELL THAN HER LOOKS IN THE LATER STAGES OF HER STORY THERE ARE EPISODES OF PATHOS HER BELIEF THAT A GARDENER WAS HER DEAD SON REINCARNATED HER USE OF FLOWING HEADDRESSES TO DISGUISE THE SCARS LEFT BY AN OPERATION FOR CANCER OF THE JAW HER SORROW AT THE DEATH OF STRACHEY WHO HAD EAGERLY ACCEPTED HER HOSPITALITY WHILE JEERING TO HIS FRIENDS THAT SHE WAS GROTESQUE HER TOUCHING FAITH IN HER INCOMPETENT DOCTOR WHOSE TREATMENT EVENTUALLY KILLED HER BUT PERHAPS THE GREATEST PATHOS IS RESERVED FOR BLOOMSBURY'S FATAL AMBITION TO MORALLY REINVENT THE WORLD THE SHEER INTROVERSION AND NARCISSISM OF MS SEYMOUR'S CHARACTERS BECOMES WEARISOME IN ALL THE ENDLESS STREAM OF DIARIES AUTOBIOGRAPHIES AND BIOGRAPHIES OF WHICH MS SEYMOUR'S IS ONLY THE LATEST THEY SEEM TO HAVE HAD A GENIUS FOR SELFANALYSIS BUT NO TALENT FOR SELFUNDERSTANDING 9308270112 930827 CANADA TO SELL BONDS OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION WEDNESDAY 22 BILLION CANADIAN DOLLARS US168 BILLION OF NONCALLABLE 6 1/4 BONDS DUE SEPT 15 1995 PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9308270111 930827 PORSCHE TO HOLD LINE ON PRICES RENO NEV PORSCHE CARS NORTH AMERICA INC THE US SALES ARM OF GERMANY'S PORSCHE AG SAID IT WON'T RAISE PRICES ON ANY 1994 MODEL VEHICLES OVER 1993 LEVELS PRICES FOR PORSCHE'S 17 MODELS WILL RANGE FROM 39950 FOR THE PORSCHE 968 COUPE TO 99000 FOR THE PORSCHE 911 TURBO 36 9308270110 930827 ORANGE & ROCKLAND FIRES OFFICIAL FILES RACKETEERING LAWSUIT PEARL RIVER NY ORANGE & ROCKLAND UTILITIES INC FIRED A SUSPENDED VICE PRESIDENT AND FILED A CIVIL RACKETEERING SUIT AGAINST HER AND THREE OTHER FORMER EMPLOYEES CLAIMING THAT THEY OPERATED A SCHEME TO BILK THE COMPANY OUT OF MORE THAN 125000 ORANGE & ROCKLAND HAD SUSPENDED WITH PAY LINDA WINIKOW VICE PRESIDENT FOR CORPORATE COMMUNICATIONS AND EXTERNAL AFFAIRS AFTER SHE WAS ARRESTED ON CRIMINAL CHARGES A COMMITTEE OF DIRECTORS INVESTIGATING MS WINIKOW'S ACTIVITIES SUBSEQUENTLY RECOMMENDED THAT SHE BE FIRED AND THE LAWSUIT FILED THE COMPANY CLAIMED IN ITS SUIT THAT MS WINIKOW ALONG WITH FORMER EMPLOYEES PAUL AND MARIA PICKARD AND JUSTIN SCHWARTZ AND TWO VENDORS WERE INVOLVED IN A SCHEME TO DEFRAUD THE UTILITY THROUGH FALSE BILLING AND OTHER MEANS MS WINIKOW'S ATTORNEY DIDN'T RETURN PHONE CALLS MR PICKARD NOW AN EMPLOYEE OF NORTHEAST UTILITIES HAS BEEN SUSPENDED FROM THE HARTFORD CONN UTILITY WITHOUT PAY PENDING AN INTERNAL AUDIT THERE THE NEW YORK STATE ATTORNEY GENERAL'S OFFICE SAID IT WOULD FILE A PETITION WITH STATE REGULATORS TODAY REQUESTING THAT REGULATORS MAKE ORANGE & ROCKLAND'S RATES TEMPORARY SUCH A RATE STRUCTURE ALLOWS THE UTILITY TO COLLECT ITS BILLINGS BUT IF ANY IMPROPRIETIES ARE DISCOVERED REGULATORS CAN SEEK A REFUND OF EXCESSIVE RATES THE NEW YORK PUBLIC SERVICE COMMISSION ACKNOWLEDGED THAT IT HAS THE OPTION TO MAKE ORANGE & ROCKLAND'S RATES TEMPORARY MEANWHILE A SPOKESWOMAN FOR THE COMMISSION SAID ITS OWN INVESTIGATION INTO ORANGE & ROCKLAND IS CONTINUING MS WINIKOW'S ARREST PART OF AN INVESTIGATION BY THE ROCKLAND COUNTY DISTRICT ATTORNEY STEMMED FROM ALLEGED ILLICIT POLITICAL CONTRIBUTIONS MADE TO SEVERAL CANDIDATES THE ROCKLAND COUNTY DISTRICT ATTORNEY'S OFFICE SAID ITS CRIMINAL INVESTIGATION IS CONTINUING 9308270109 930827 FINANCING BUSINESS ROCHESTER GAS & ELECTRIC CORP ROCHESTER GAS & ELECTRIC CORP SAID IT WILL OFFER AS MANY AS 15 MILLION COMMON SHARES TO REPAY A DEBT OF ABOUT 50 MILLION SMITH BARNEY SHEARSON INC WILL LEAD THE UNDERWRITING AND THE PUBLIC OFFERING IS EXPECTED TO BEGIN IN MIDSEPTEMBER PROCEEDS WILL GO TO REPAY CERTAIN OF THE ROCHESTER NY COMPANY'S SHORTTERM NOTES OUTSTANDING CURRENTLY ROCHESTER G&E HAS ABOUT 352 MILLION SHARES OUTSTANDING 9308270108 930827 CORPORATE FOCUS EGGHEAD'S WOES MULTIPLY AS ANOTHER CHIEF RESIGNS SOFTWARE RETAILER TAKES SOME HARD KNOCKS AMID FIERCE PRICING WARS BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL EGGHEAD INC APPEARS TO BE ALL SCRAMBLED UP ONCE A WALL STREET HIGHFLIER WITH A FIELD ALMOST TO ITSELF THE ISSAQUAH WASH COMPUTERSOFTWARE RETAILER IS REELING FROM STIFF NEW COMPETITION AND AN INDUSTRY PRICING WAR NOW IT HAS A HIGHLEVEL DEFECTION ON ITS HANDS TIMOTHY E TURNPAUGH RESIGNED YESTERDAY AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER AFTER ONLY SEVEN MONTHS ON THE JOB HE IS SUCCEEDED BY TERENCE M STROM PRESIDENT WITH A STRONGER RETAILING BACKGROUND AND RONALD P ERICKSON VICE CHAIRMAN WHO WILL JOINTLY HEAD THE COMPANY MR TURNPAUGH WAS THE FOURTH CEO AT EGGHEAD IN AS MANY YEARS THE MANAGEMENT TURBULENCE BEGAN IN 1989 WHEN EGGHEAD'S FOUNDER AND CHAIRMAN VICTOR D ALHADEFF CEDED HIS POSTS AS CEO AND PRESIDENT IN THE FIRST OF MANY MANAGEMENT OVERHAULS THAT HAVE DEBILITATED MORALE AND ACCORDING TO ANALYSTS PRODUCTIVITY PEOPLE SPEND ALL THEIR TIME STANDING AROUND A WATER COOLER TALKING ABOUT WHO THEIR NEW CEO WILL BE SAID VAN BAKER AN ANALYST AT INFOCORP A SANTA CLARA CALIFBASED MARKET RESEARCH FIRM MR TURNPAUGH LEAVES A FOUNDERING COMPANY PROFIT PLUNGED BY NEARLY ONEHALF IN THE LATEST FISCAL YEAR FOR THE FIRST QUARTER ENDED JULY 24 THE CONCERN REPORTED A LOSS OF 2 MILLION OR 12 CENTS A SHARE ON REVENUE OF 2182 MILLION COMPARED WITH YEAREARLIER PROFIT OF 17 MILLION OR 10 CENTS A SHARE ON SALES OF 2021 MILLION THE STOCK HAS BEEN LOPPED BY MORE THAN TWOTHIRDS JUST SINCE LAST YEAR EGGHEAD OFFICIALS WHO WOULD NOT COMMENT ON MR TURNPAUGH'S DEPARTURE SAID THE QUARTERLY LOSS RESULTED FROM A 44 MILLION RESTRUCTURING CHARGE WITHOUT THE CHARGE OPERATING PROFIT WAS STILL DEPRESSED AT 950000 OR FOUR CENTS A SHARE THE COMPANY DIDN'T ELABORATE ON WHAT THE RESTRUCTURING WOULD ENTAIL ALTHOUGH CHIEF FINANCIAL OFFICER CAROLYN TOBIAS INDICATED THAT AS MUCH AS 6 OF THE WORK FORCE MIGHT BE REDUCED AND THAT THE COMPANY IS LOOKING AT ALL OPERATIONS FOR PLACES TO SAVE MONEY WE DON'T THINK THAT THE INDUSTRYWIDE PRESSURES WILL ABATE ANYTIME SOON AND THAT'S WHY IT'S SO IMPORTANT TO GET OUR COSTS IN LINE MS TOBIAS SAID MS TOBIAS CONCEDED THAT PERHAPS SOME EMPLOYEES SUFFER FROM SAGGING MORALE BUT SHE ADDED THERE ARE MANY WHO ARE HAPPY THAT WE ARE TAKING SOME OF THESE ACTIONS AND WE ARE MAKING OURSELVES MORE COMPETITIVE EGGHEAD'S MISERIES HAVE BECOME SO PRONOUNCED THAT MANY OF THE WALL STREET ANALYSTS WHO FOLLOWED THE COMPANY IN FATTER YEARS HAVE BAILED OUT IT'S JUST A HORROR SHOW SAID AN ANALYST WHO HAS DROPPED HIS COVERAGE OF EGGHEAD AND WHO DIDN'T WANT HIS NAME USED THINGS WERE A LOT ROSIER DURING THE MID1980S WHEN EGGHEAD FLOURISHED AMID A VACUUM OF COMPETITION IN THE THENEMERGING MARKET TO RESELL PERSONALCOMPUTER SOFTWARE TO BUSINESSES AND CONSUMERS EGGHEAD'S EARLY SUCCESSFUL STRATEGY WAS TO SET UP AN ELABORATE CHAIN OF SMALL RETAIL STORES NOW CALLED EGGHEAD SOFTWARE AND STAFF THEM WITH HIGHLY TRAINED SALESPEOPLE WHO COULD ANSWER THE MANY QUESTIONS FROM A COMPUTERILLITERATE PUBLIC THIS STRATEGY WORKED SO WELL BECAUSE AT THE TIME PERSONAL COMPUTERS CAME WITH JUST BASIC SOFTWARE PROGRAMS SUCH AS WORD PROCESSING AND SPREADSHEETS EGGHEAD OFFERED ADDITIONAL SOFTWARE PROGRAMS INCLUDING COMPUTER GAMES AS WELL AS ACCESSORIES SUCH AS THE MOUSE INSTRUMENT THAT GUIDES A USER THROUGH A PROGRAM TODAY THOUGH PC MAKERS ARE INCREASINGLY BUNDLING MANY SOFTWARE PROGRAMS INTO THE COMPUTER BEFORE THEY EVER GO OUT INTERNATIONAL BUSINESS MACHINES CORP FOR INSTANCE OFFERS A SUITE OF SOFTWARE PROGRAMS IN SOME OF ITS COMPUTERS THAT THE USER CAN SIMPLY ORDER BY TELEPHONE APPLE COMPUTER INC ALSO OFFERS SOFTWARE SUITES IN SOME OF ITS COMPUTERS BESIDES LOSING POTENTIAL CUSTOMERS FROM THAT MOVE IN THE INDUSTRY EGGHEAD WAS HIT ABOUT FOUR YEARS AGO WITH THE VICIOUS NEW COMPETITION OF COMPUTER SUPERSTORES SUCH AS THOSE OPERATED BY DALLASBASED COMPUSA INC AS WELL AS BY COMPETITION IN THE CORPORATE MARKET FROM RIVALS SUCH AS CORPORATE SOFTWARE INC AND SOFTWARE SPECTRUM INC THESE WAREHOUSELIKE SUPERSTORES OUTLETS NOT ONLY OFFER SOFTWARE AT ROCKBOTTOM PRICES BUT PCS AND ACCESSORIES AS WELL THIS IN EFFECT STARTED ONESTOP SHOPPING FOR COMPUTER PRODUCTS EGGHEAD'S MARGINS WERE CRIPPLED BECAUSE IT NOT ONLY HAD TO DROP PRICES TO COMPETE BUT IT CONTINUED TO MAINTAIN THE HUGE OVERHEAD OF HAVING AS MANY AS 200 STORES COMPUSA ON THE OTHER HAND COMPETES JUST AS EFFECTIVELY WITH 55 SUPERSTORES ANOTHER DEVASTATING BLOW FOR EGGHEAD HAS BEEN THE EXPLOSION IN THE NUMBER OF SOFTWARE VENDORS WHO SELL THROUGH MAILORDER CHANNELS RATHER THAN IN STORES THERE ARE NOW SEVERAL DOZEN OF THESE COMPANIES THAT ADVERTISE THEIR TOLLFREE NUMBERS IN COMPUTER MAGAZINES SO THAT CUSTOMERS DON'T EVER NEED TO GO INTO A STORE IT'S SO EASY TO BUY SOFTWARE FROM YOUR SEAT OBSERVED WILLIAM FRERICHS VICE PRESIDENT OF RESEARCH FOR BLACK & CO PORTLAND ORE WANDERING DOWN TO AN EGGHEAD STORE IS SOMETHING THAT WE HAVEN'T DONE IN YEARS COMPETITORS AND ANALYSTS SAID THAT EGGHEAD IS SORELY IN NEED OF NEW DIRECTION AND THAT PERHAPS THE NEW MANAGEMENT WILL HELP AMONG OTHER THINGS THEY SAID EGGHEAD NEEDS TO CONSOLIDATE ITS COSTLY NETWORK OF NUMEROUS SMALL RETAIL STORES AND FOLLOW THE LESSEXPENSIVE SUPERSTORE FORMAT THEY NEED TO MAYBE TAKE THREE OR FOUR STORES IN A METRO AREA AND MOVE THEM INTO ONE SAID INFOCORP'S MR BAKER EGGHEAD'S MS TOBIAS SAID THE COMPANY IS CONSIDERING THE SUPERSTORE FORMAT AS WELL AS CLOSING DOWN UNPROFITABLE STORES SHE SAID EGGHEAD HAS BEEN CLOSING AN AVERAGE OF NINE TO 15 OF ITS MOST UNPROFITABLE STORES EACH YEAR FOR THE PAST FIVE YEARS SHE SAID THE OVERALL NUMBER OF STORES IS AT A PEAK NOW THOUGH BECAUSE OF NEW OPENINGS BRUCE RYON AN ANALYST AT DATAQUEST INC A MARKET RESEARCH FIRM IN SAN JOSE CALIF SAID EGGHEAD ALSO COULD EXPAND MORE INTO MAILORDER TO SHAVE COSTS THE COMPANY HAS SET UP A MAILORDER BUSINESS BUT ANALYSTS SAY IT ISN'T PROMOTED ENOUGH MS TOBIAS AGREED THE COMPANY WOULD LIKE TO EXPAND THE MAILORDER BUSINESS WHATEVER HAPPENS COMPETITORS AREN'T READY TO DANCE ON EGGHEAD'S GRAVE TO SEE ANYONE FAIL IN AN INDUSTRY IS NOT GOOD FOR THE INDUSTRY SAID NATHAN MORTON CHAIRMAN AND CHIEF EXECUTIVE OF COMPUSA WE WOULD HOPE THAT THEY ARE ABLE TO REFORMAT THEMSELVES IN A WAY THAT WILL BENEFIT THEM IN THE LONGER TERM MAJOR COMPETITORS COMPUSA INC CORPORATE SOFTWARE SOFTWARE SPECTRUM AND NUMEROUS SOFTWARE MAILORDER HOUSES MAJOR PRODUCT LINES PERSONAL COMPUTER SOFTWARE RESOLD WITH APPROXIMATELY 4000 SOFTWARE PROGRAMS AND ACCESSORIES SOLD THROUGH ITS 45 CORPORATE GOVERNMENT AND EDUCATIONSELLING LOCATIONS ITS COMPANYOPERATED CHAIN OF 202 RETAIL STORES AND ITS TELEPHONE MAILORDER OPERATION 9308270106 930827 SHAWMUT TO BUY PEOPLES BANCORP FOR 180 MILLION BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL HARTFORD CONN SHAWMUT NATIONAL CORP AGREED TO ACQUIRE PEOPLES BANCORP OF WORCESTER INC A NEW ENGLAND THRIFT WITH A STRONG BALANCE SHEET FOR ABOUT 180 MILLION IN AN EXCHANGE OF COMMON STOCK PEOPLES WITH 913 MILLION IN ASSETS AGREED TO EXCHANGE EACH OF ITS COMMON SHARES FOR ABOUT 52 OF SHAWMUT COMMON STOCK IN A PURCHASE THAT REPRESENTS 176 TIMES PEOPLES FULLY DILUTED BOOK VALUE OF 102 MILLION AS OF JUNE 30 THE ACQUISITION IS PART OF SHAWMUT'S EFFORTS TO INCREASE ITS ASSETS AS LARGER REGIONAL RIVALS LIKE FLEET FINANCIAL GROUP INC AND BANK OF BOSTON CORP ALSO ARE ACQUIRING SMALLER COMPETITORS SHAMWUT AGREED IN MARCH TO BUY NEW DARTMOUTH BANK OF MANCHESTER NH FOR 143 MILLION IN AN EXCHANGE OF COMMON STOCK THE WORCESTER MASS THRIFT HAS BEEN CONSPICUOUS AMONG THE REGION'S INSTITUTIONS FOR POSTING STRONG EARNINGS SINCE IT WENT PUBLIC IN 1986 YEARS IN WHICH MANY NEW ENGLAND BANKS FAILED AS THEIR LOANS TURNED SOUR IN A SINKING ECONOMY THE KEY TO PEOPLES' SUCCESS ANALYSTS SAY WAS THE BANK'S STRICT LENDING POLICIES WHICH PROMPTED IT TO REFUSE SOME BORDERLINE CREDITS THAT WERE EVENTUALLY PICKED UP BY ITS COMPETITORS EVENTUALLY PEOPLES GREW BY ACQUIRING SMALL TROUBLED BANKS THAT HAD STUMBLED DURING THE RECESSION IN THE LAST YEAR HOWEVER PEOPLES EFFORTS TO MERGE WITH EQUALSIZE MASSACHUSETTS BANKS WERE UNSUCCESSFUL PROMPTING A SEARCH FOR A LARGER ACQUIRER SAID PEOPLES CHAIRMAN WOODBURY C TITCOMB BANKING IN NEW ENGLAND IS AT A CROSSROADS SAID MR TITCOMB AT THE ANNOUNCEMENT OF SHAWMUT'S PURCHASE AGREEMENT EVEN EXTREMELY HEALTHY INSTITUTIONS SUCH AS PEOPLES ARE BEST SERVED BY COMBINING TO CREATE A WIDER ARRAY OF SERVICES FOR CUSTOMERS AND THE LEANEST POSSIBLE COST STRUCTURE ANALYSTS POINTED OUT THAT BANKS LIKE PEOPLES ARE FINDING IT DIFFICULT TO GROW IN THE STILL SLUGGISH NEW ENGLAND ECONOMY WOODY TITCOMB RAN A GREAT BANK BUT HE HAD A TOUGH TIME FINDING NEW BUSINESS OUT IN WORCESTER WHERE THE ECONOMY REMAINS WEAK SAYS GERARD CASSIDY AN ANALYST WITH JOHN HANCOCK INSTITUTIONAL EQUITIES WHEN HE COULDN'T BUY OTHER BANKS AND HE COULDN'T MAKE LOANS BECAUSE OF THE BAD ECONOMY HE WENT TO SHAWMUT AND GOT THEM TO PAY TOP DOLLAR IN THE ACQUISITION FOR SHAWMUT A 253 BILLION BANK BASED IN HARTFORD CONN THE PEOPLES PURCHASE WILL DOUBLE ITS PRESENCE IN WORCESTER MASSACHUSETTS' SECONDLARGEST CITY AND ALLOW IT TO CLOSE OVERLAPPING BRANCH OFFICES AND OPERATIONS CENTERS THE KIND OF COST EFFICIENCIES THAT UNDERLIE MANY RECENT INMARKET DEALS AMONG NEW ENGLAND BANKS SHAWMUT WOULD BECOME A LEADING PLAYER IN THE WORCESTER AREA WITH 21 OFF THE AREA'S DEPOSITS AND HAVE A CHANCE TO MERGE ITS 26 OFFICES IN THE AREA WITH PEOPLES' 23 BRANCH OFFICES THE TRANSACTION WILL BE TREATED AS A TAXFREE POOLING OF INTERESTS AND IS EXPECTED TO CLOSE IN NEXT YEAR'S FIRST QUARTER SUBJECT TO APPROVAL BY PEOPLES SHAREHOLDERS AND REGULATORS AS PART OF THE AGREEMENT PEOPLES GRANTED SHAWMUT AN OPTION TO ACQUIRE UP TO 660000 SHARES OF PEOPLES COMMON STOCK AT 35 A SHARE UNDER CERTAIN CIRCUMSTANCES 9308270105 930827 AEGON'S NET INCOME INCREASED 72 IN FIRST 6 MONTHS SPECIAL TO THE WALL STREET JOURNAL AEGON ALSO BOOSTED ITS INTERIM DIVIDEND 45 TO 115 GUILDERS 61 US CENTS A SHARE FROM 110 GUILDERS A YEAR AGO BUOYED BY GAINS ACROSS THE BOARD IN ITS PREMIUM INCOME AND A SHARP RISE IN INVESTMENT INCOME AEGON'S REVENUE ROSE TO 888 BILLION GUILDERS FROM 803 BILLION GUILDERS A YEAR EARLIER WITH AFTERTAX CAPITAL GAINS OF 859 MILLION GUILDERS COMPARED WITH THE YEAREARLIER'S 857 MILLION GUILDERS THE COMPANY'S EARNINGS FROM ALL ACTIVITIES ROSE TO 4970 MILLION GUILDERS IN THE FIRST HALF FROM 4634 MILLION GUILDERS THE BIGGEST PROBLEMS IN AEGON'S GLOBAL BUSINESS WERE IN EUROPE WHERE ECONOMIC STAGNATION DAMPED INSURANCE MARKETS AND WHERE PROPERTY DAMAGE LINES WERE PRESSURED THE BELGIAN OPERATIONS LOST MONEY IN THE FIRST HALF ALTHOUGH THERE WAS SOME NARROWING OF THE LOSS THE COMPANY'S DUTCH DOMESTIC INSURANCE BUSINESS HOWEVER GENERATED HIGHER REVENUE AND EARNINGS DESPITE TIGHTENING COMPETITIONGON SAID THE PROPERTY DAMAGE LINES ALTHOUGH UNDER PRESSURE WERE STILL IN THE BLACK WITH REVENUE UP THE INDIVIDUAL LIFEINSURANCE SECTOR ALSO WAS UNDER PRESSURE AS REVENUE EDGED ONLY SLIGHTLY HIGHER 9308270103 930827 LEND LEASE REPORTS OPERATING PROFIT ROSE 55 FOR FISCAL YEAR SPECIAL TO THE WALL STREET JOURNAL SYDNEY AUSTRALIA LEND LEASE CORP A PROPERTY AND FINANCIAL SERVICES COMPANY REPORTED THAT OPERATING PROFIT AFTER TAX ROSE 55 TO 2061 MILLION AUSTRALIAN DOLLARS US1386 MILLION FROM A1953 MILLION FOR THE FISCAL YEAR ENDED JUNE 30 COMMENTING ON THE COMPANY'S OUTLOOK FOR THE NEW FISCAL YEAR DIRECTORS SAID THAT WHILE SIGNIFICANT ECONOMIC GROWTH ISN'T EXPECTED IN AUSTRALIA DURING 199394 LEND LEASE IS BUDGETING FOR AN INCREASE IN PROFIT AND EARNINGS PER SHARE STUART HORNERY EXECUTIVE CHAIRMAN OF LEND LEASE SAID AT A NEWS CONFERENCE IN SYDNEY THAT THE DIVIDEND FOR THE CURRENT FISCAL YEAR IS LIKELY TO BE INCREASED FROM THAT RECOMMENDED FOR THE YEAR ENDED JUNE HE SAID IT IS NO SURPRISE THAT THREEQUARTERS OF THE FISCAL YEAR PROFIT COMES FROM LEND LEASE'S FINANCIAL SERVICES FOR THE FIRST TIME WE SOLD MORE ANNUAL PREMIUM FOR LIFE INSURANCE THAN ANYONE ELSE IN THE COUNTRY AND BY SOME COMMENTATORS' RATINGS WE ARE THE NO 2 FUNDS MANAGER IN AUSTRALIA HE SAID LEND LEASE'S RETAIL FINANCIAL SERVICES DIVISION CONTRIBUTED A133 MILLION OR 536 TO THE GROUP'S TOTAL OPERATING PROFIT BEFORE TAX UP FROM A1067 MILLION MR HORNERY SAID THE PROPERTY DIVISION'S WORKLOAD WAS STRONG DESPITE THE WEAK PROPERTY MARKET AND THE COMPANY EXPECTS TO SIGN UP NEW PROPERTY PROJECTS IN THE NEXT SIX MONTHS 9308270102 930827 LETTERS TO THE EDITOR UNIONS DON'T INFLUENCE OUR VIEWS ON WAGES YOUR AUG 12 ARTICLE REICH PLANS A PUSH TO RAISE MINIMUM WAGE QUOTES ME AS SUPPORTING A MINIMUMWAGE INCREASE THE ARTICLE IDENTIFIES ME AS THE DIRECTOR OF AN ORGANIZATION THE CENTER ON BUDGET AND POLICY PRIORITIES THAT IS FUNDED PRIMARILY BY FOUNDATIONS BUT THAT ALSO RECEIVES A SMALL AMOUNT OF UNION MONEY WHILE THESE STATEMENTS ARE ACCURATE THEY COULD CREATE THE MISIMPRESSION THAT OUR POSITION ON THE MINIMUM WAGE IS CONNECTED TO RECEIPT OF UNION FUNDS IN FACT THE CENTER RECEIVES FIVE TIMES AS MUCH IN CORPORATE FUNDS AS IN UNION FUNDS UNION FUNDING EQUALS ONLY 1 OF OUR BUDGET AND ALL OF IT IS RESTRICTED FOR USE IN OUR OUTREACH CAMPAIGN TO HELP INFORM WORKING POOR FAMILIES ABOUT THE EARNED INCOME TAX CREDIT AND HOW TO APPLY FOR IT NONE OF THE SMALL AMOUNT OF UNION MONEY WE RECEIVE IS USED FOR THE CENTER'S POLICY WORK THE CENTER HAS A POLICY OF DECLINING MONEY FROM ANYONE WITH A FINANCIAL INTEREST IN THE POLICY AREAS WHERE THEIR FUNDS WOULD SUPPORT OUR WORK OUR RECOMMENDATIONS ON MINIMUM WAGE ISSUES ARE BASED ON OUR INDEPENDENT ANALYSES OF THESE ISSUES UNINFLUENCED BY FOUNDATION CORPORATE OR UNION SUPPORT 9308270101 930812 ECONOMY REICH PLANS PUSH TO RAISE MINIMUM WAGE LABOR SECRETARY URGES RISE TO 450 UP 25 CENTS INDEXING IT TO INFLATION BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LABOR SECRETARY ROBERT REICH IS PLANNING THIS FALL TO STEP UP HIS PUSH FOR AN INCREASE IN THE MINIMUM WAGE IN A MEMO THREE WEEKS AGO TO PRESIDENT CLINTON MR REICH LAID OUT HIS ARGUMENTS FOR BOOSTING THE BASE WAGE BY AT LEAST 25 CENTS FROM ITS CURRENT 425ANHOUR LEVEL AND THEN INDEXING THE WAGE TO ALLOW IT AUTOMATICALLY TO RISE EVERY YEAR CURRENTLY ANY INCREASE IN THE MINIMUM WAGE MUST BE APPROVED BY CONGRESS MR REICH WOULDN'T COMMENT ON HIS MEMO AND STAFFERS SAID IT WAS INTENDED FOR INTERNAL USE BUT PEOPLE FAMILIAR WITH THE LABOR SECRETARY'S THINKING SAID THAT HE HOPED TO USE THE 450 LEVEL AS A STARTING POINT TO PROD ADMINISTRATION THINKING ABOUT RAISING THE STANDARD OF LIVING FOR THE WORKING POOR DURING THE CAMPAIGN MR CLINTON SAID THE MINIMUM WAGE SHOULD BE RAISED AND INDEXED TO KEEP PACE WITH INFLATION BUT HAS SAID LITTLE ABOUT THE ISSUE SINCE BEING ELECTED IN HIS MEMO MR REICH SAID HE HOPED TO SUBMIT HIS INITIAL RECOMMENDATIONS ON THE MINIMUM WAGE TO THE NATIONAL ECONOMIC COUNCIL AND THE DOMESTIC POLICY COUNCIL IN MIDOCTOBER THAT TIMING COULD BE PROBLEMATIC HOWEVER IN THE FALL THE WHITE HOUSE PLANS TO PROPOSE LEGISLATION TO OVERHAUL THE NATION'S HEALTHCARE PROGRAM AND TO RATIFY THE NORTH AMERICAN FREE TRADE AGREEMENT BOTH OF WHICH ARE EXPECTED TO BE CONTENTIOUS ON CAPITOL HILL THOSE CONFLICTS COULD POSTPONE ANY EFFORTS TO RAISE WAGES UNTIL NEXT YEAR THE REICH MEMO ARGUES THAT TO HELP THE WORKING POOR A MINIMUM WAGE INCREASE MUST ACCOMPANY THE EXPANDED EARNEDINCOME TAX CREDIT APPROVED LAST WEEK AS PART OF THE PRESIDENT'S BUDGET PACKAGE THE EARNEDINCOME CREDIT PROVIDES TAX BREAKS TO POOR WORKING FAMILIES WITH CHILDREN AS PART OF THE ADMINISTRATION'S ANTIPOVERTY PLAN TO MAKE WORK PAY A FAMILY OF FOUR WITH A SINGLE FULLTIME WORKER EARNING 450 AN HOUR WOULD BE LIFTED ABOVE THE POVERTY LINE WHEN THE EARNEDINCOME CREDIT AND FOOD STAMPS ARE COUNTED A 450 MINIMUM WAGE WOULD EQUAL THE 1992 LEVEL OF 425 INDEXED TO 1994 LIBERALS ARE HOPING FOR A HIGHER MINIMUM WAGE THAN 450 I ASSUME THAT REICH'S MEMO WAS DESIGNED TO START DISCUSSION OF THIS WITHIN THE ADMINISTRATION SAID ROBERT GREENSTEIN EXECUTIVE DIRECTOR OF THE CENTER ON BUDGET AND POLICY PRIORITIES THE SOLE CRITERION SHOULD NOT BE WHETHER IT LIFTS A FAMILY ABOVE THE POVERTY LINE ADDED MR GREENSTEIN WHO SAID HE HOPES THE WHITE HOUSE WILL CALL FOR A MINIMUM WAGE CLOSER TO 5 AN HOUR THE CENTER ON BUDGET AND POLICY PRIORITIES IS A THINK TANK FUNDED TO A LARGE EXTENT WITH MONEY FROM SUCH ORGANIZATIONS AS THE FORD ROCKEFELLER ANNIE E CASEY AND CHARLES STEWART MOTT FOUNDATIONS ALONG WITH WHAT MR GREENSTEIN DESCRIBES AS A TINY AMOUNT OF UNION MONEY UNION LEADERS HAVE CALLED ON THE ADMINISTRATION AND CONGRESS TO LIFT THE MINIMUM WAGE TO 475 THIS YEAR AND 525 NEXT YEAR ANY EFFORT TO RAISE THE WAGE IS CERTAIN TO BE FOUGHT BY REPUBLICANS AND BUSINESS LEADERS WHO WORRY THAT IT WILL COST COMPANIES TOO MUCH MONEY THEY SAY A HIGHER MINIMUM WAGE WILL INCREASE UNEMPLOYMENT AND KEEP BUSINESSES FROM EXPANDING SEE RELATED LETTER LETTERS TO THE EDITOR UNIONS DON'T INFLUENCE OUR VIEWS ON WAGES WSJ AUG 27 1993 9308120113 YY93 MM08 9308270100 930827 COKE'S JOINT VENTURE IN MEXICO IS PLANNING 427 MILLION OUTLAYS SPECIAL TO THE WALL STREET JOURNAL MEXICO CITY COCACOLA CO'S JOINT BOTTLING VENTURE IN MEXICO PLANS INVESTMENTS OF 427 MILLION FOR THE 1993 TO 1996 PERIOD TO MODERNIZE ITS SOFTDRINK PRODUCTION AND DISTRIBUTION SYSTEMS SPEAKING IN MONTERREY MEXICO AT THE OPENING OF COCACOLA FEMSA SA'S ROAD SHOW FOR THE VENTURE'S COMING INITIAL PUBLIC OFFERING COMPANY OFFICIALS SAID THEY PLAN TO INVEST 208 MILLION IN PRODUCTION 185 MILLION IN DISTRIBUTION AND 34 MILLION IN OTHER AREAS ALFREDO LIVAS CANTU DIRECTOR OF FINANCE FOR FOMENTO ECONOMICO MEXICANO SA OR FEMSA SAID THE FUNDS WOULD BE RAISED PRIMARILY THROUGH OPERATING PROFITS AND TO A LESSER EXTENT BANK CREDITS FEMSA IS THE HOLDER OF THE LARGEST COCACOLA FRANCHISE IN THE WORLD OUTSIDE THE US COKE AND FEMSA'S SOFTDRINK DIVISION FEMSA REFRESCOS TEAMED UP IN JUNE WITH COKE BUYING 30 OF THE DIVISION FEMSA HOLDS A 51 STAKE IN THE VENTURE THE REMAINING 19 WILL BE OFFERED TO INVESTORS IN A COMING SHARE OFFERING VALUED AT ABOUT 150 MILLION THE SHARES WILL BE QUOTED ON MEXICO'S STOCK EXCHANGE THE BOLSA DE VALORES AND ON THE NEW YORK STOCK EXCHANGE THE OFFERING IS SCHEDULED FOR NEXT MONTH BEAR STEARNS & CO IS LEADING THE ISSUE OVERSEAS AND HAS TARGETED AN OFFERING PRICE OF BETWEEN 17 AND 19 PER AMERICAN DEPOSITARY SHARE FOR 6560000 ADSES CASA DE BOLSA BANCOMER SA IS LEADING THE MEXICAN TRANCHE AND IS SHOOTING FOR A PRICE OF 170 AND 190 A SHARE FOR 164 MILLION SHARES OF SERIES L COMMON STOCK 9308270099 930827 LETTERS TO THE EDITOR LOST CONCERTO FOUND IN A JULY 8 LETTER FELIX KAUFMANN CRITICIZES HASKELL ROSENBERG'S JUNE 25 LETTER ON BEETHOVEN'S SIXTH SIC PIANO CONCERTO MR KAUFMANN CLAIMS IT IS A TRANSCRIPTION OF A VIOLIN CONCERTO AND SAYS THE ERUDITE HASKELL ROSENBERG'S SCORN FOR SGT HIDEKI YAMAZAKI WHO HAD MENTIONED IN A JUNE 1 STORY HOW MUCH HE LOVED BEETHOVEN'S PIANO CONCERTO NO 6 IS MISPLACED HALF RIGHT MR KAUFMANN ERUDITE MR ROSENBERG CERTAINLY IS BUT SCORNFUL NEVER THIS WAS TRUE WHEN I FIRST MET HIM IN COLLEGE 19361940 AND IT WAS STILL TRUE WHEN WE MET AGAIN IN 1990 HOWEVER I REFER MR KAUFMANN AS I DID MR ROSENBERG RECENTLY TO BEETHOVEN'S THE LOST CONCERTO IN E FLAT 1784 IN MY CD COLLECTION OF BEETHOVEN'S PIANO CONCERTOS IT SAYS THAT IT WAS DISCOVERED IN 1890 FIRST PERFORMANCE BY FELICJA BLUMENTAL IN LONDON JAN 5 1968 HOW HAS SGT YAMAZAKI BEEN DOING RECENTLY HE STARTED ALL THIS 9308270098 930827 FORD RECALLS UP TO 14600 CARS DEARBORN MICH FORD MOTOR CO SAID IT IS RECALLING AS MANY AS 14600 1993 MARK VIII LUXURY CARS TO FIX DEFECTS IN SENSORS FOR THE THROTTLE OR SUSPENSION WHICH MAY PREVENT THE VEHICLE FROM STARTING OR RIDING PROPERLY FORD SAID IT IS RECALLING THE VEHICLES TO REPAIR A POSSIBLE PROBLEM THAT MAY CAUSE WATER LEAKAGE INTO THE SUSPENSION RIDEHEIGHT SENSOR WHICH COULD CHANGE THE VEHICLE HEIGHT IN THE REAR FRONT OR SIDE ABOUT 8500 OF THE 14600 VEHICLES ARE ALSO BEING RECALLED TO CHECK POSSIBLE DEFECTS IN THE THROTTLE POSITION SENSOR WHICH MAY CAUSE THE TRANSMISSION TO MALFUNCTION BOTH REPAIRS WILL BE MADE AT NO COST 9308270097 930827 FRENCH BANK TO BOOST STAKE IN UAP TO 20 BANQUE NATIONALE DE PARIS IS BUYER BOTH FIRMS AWAITING PRIVATIZATION BY PETER GOLDSTEIN STAFF REPORTER OF THE WALL STREET JOURNAL UAP ALSO IS AMONG THE COMPANIES AWAITING PRIVATIZATION BUT THE STATE HASN'T YET SIGNALED WHEN IT MAY SELL THE INSURER BNP ALSO SAID ITS FIRSTHALF NET INCOME TOTALED 522 MILLION FRANCS 892 MILLION LOWER THAN AN EARLIER ESTIMATE OF 542 MILLION FRANCS AND DOWN 61 FROM THE FIRST HALF OF 1992 BNP WILL INCREASE ITS UAP INTEREST THROUGH THE PURCHASE OF THE 499 STAKE THE STATE CURRENTLY HOLDS IN FINANCIERE BNP A HOLDING CONCERN THAT OWNS 20 OF UAP BNP WILL THUS BECOME THE SOLE OWNER OF FINANCIERE BNP AND OF 20 OF UAP THE TRANSACTION REPRESENTS THE FIRST ATTEMPT BY THE STATE TO ESTABLISH A HARD CORE SHAREHOLDER FOR A SOONTOBEPRIVATIZED COMPANY BOOSTING BNP'S STAKE WILL ENSURE FRENCH INFLUENCE AFTER UAP IS PRIVATIZED BNP NOTED THAT THE BUYOUT OF THE STATE'S SHARE OF FINANCIERE BNP WILL BE PERFORMED IN COMPLETE ACCORD WITH UAP AND REFLECTS THE REINFORCEMENT OF COOPERATION AND CAPITAL LINKS BETWEEN THE TWO GROUPS BNP MUST FIRST WIN APPROVAL FROM THE NEWLY FORMED COMMISSION ON PRIVATIZATION AS WELL AS FROM THE ECONOMICS MINISTRY FOLLOWING THE TRANSACTION THE STATE WOULD RETAIN A 557 DIRECT STAKE IN UAP WHILE THE REMAINING 243 WOULD REMAIN FLOATED ON THE PARIS BOURSE SO FAR NO NATIONALIZED INSURERS HAVE BEEN TAPPED FOR IMMINENT PRIVATIZATION OTHERS ON THE LIST OF 21 INCLUDE ASSURANCES GENERALES DE FRANCE CAISSE NATIONALE DE PREVOYANCE AND GROUPMENT DES ASSURANCES NATIONALES BNP HAD BEEN NAMED IN JULY AS ONE OF THE FIRST FOUR COMPANIES TO BE SOLD OFF TOGETHER WITH OIL GROUP SOCIETE NATIONALE ELF AQUITAINE CHEMICAL/PHARMACEUTICAL MANUFACTURER RHONEPOULENC SA AND BANQUE HERVET MEANTIME BNP'S POOR FIRSTHALF RESULTS CAME AS LITTLE SURPRISE AFTER THE BANK HAD PREPARED THE MARKETS PSYCHOLOGICALLY IN JUNE AT THE TIME BNP SAID IT EXPECTED FIRSTHALF GROUP NET INCOME TO BE ROUGHLY ONE QUARTER OF THE 1992 FULLYEAR RESULT OF 217 BILLION FRANCS OR 542 MILLION FRANCS NEW PROVISIONS FOR ATRISK LOANS SHOT UP 42 FROM THE YEAREARLIER HALF TO 582 BILLION FRANCS FROM 411 BILLION CANCELING A 23 GAIN IN OPERATING PROFIT TO 688 BILLION FRANCS FROM 560 BILLION BNP'S NET BANKING INCOME CLIMBED 89 TO 2123 BILLION FRANCS FROM 1949 BILLION BUT OPERATING COSTS ROSE 34 TO 1435 BILLION FRANCS FROM 1388 BILLION BNP BLAMED THE HIGHER PROVISIONS ON DETERIORATING CONDITIONS IN THE FRENCH SMALLBUSINESS SECTOR WHERE BANKRUPTCIES HAVE BEEN CLIMBING AS THE ECONOMY FLOUNDERS MEANTIME BNP AND OTHER BANKS REMAIN VULNERABLE TO THE SLUMPING FRENCH REAL ESTATE MARKET WHICH REQUIRED ADDITIONAL PROVISIONS IN THE HALF BNP SAID WHILE BNP DIDN'T VENTURE ANY ESTIMATES FOR PERFORMANCE IN THE REMAINDER OF THE YEAR THE GROUP HAD SAID IN JUNE THAT THE SECOND HALF WOULD BE IN LINE WITH THE FIRST IF ECONOMIC CONDITIONS PERSISTED THAT WOULD IMPLY A SHARP PROFIT DECLINE FOR 1993 PARIS MARKET PARTICIPANTS SUGGESTED THAT THE UAP OPERATION INDICATES THE INSURER MAY SOON BE PLACED ON THE AUCTION BLOCK BY THE STATE SAID ONE EQUITIES DESK MANAGER I DON'T THINK THE STATE WOULD GO TO THE TROUBLE TO DISENGAGE FROM FINANCIERE BNP IF IT DIDN'T HAVE A GREATER SCHEMA IN MIND THIS IS THE FIRST TURN OF THE WHEEL BNP WILL FINANCE ITS STAKE BOOST FROM THE PROCEEDS OF A PLANNED CAPITAL BOOST THAT WILL TAKE THE FORM OF FREE SHARE WARRANTS FOR BNP SHAREHOLDERS PRECISE DETAILS OF THE OPERATION AWAIT APPROVAL FROM THE AUTHORITIES 9308270096 930827 LETTERS TO THE EDITOR GET THE BLIGHTERS AND BEAUTIFY AMERICA IN YOUR JULY 13 EDITORIAL BEAUTIFYING AMERICA YOU STATE NOTHING SO PERVASIVELY BLIGHTS MANY OF THE NATION'S URBAN AREAS AS WHAT BOARDEDUP STOREFRONTS BURNEDOUT BUILDINGS CRACK HOUSES VACANT LOTS MILES OF ASPHALT AND TRAFFIC CONGESTION TOXIC INDUSTRIAL SITES NO NONE OF THESE THE MOST PERVASIVE URBAN BLIGHT IS GRAFFITI IF ANY SOCIAL CRIME CALLED OUT FOR A NO TOLERANCE' POLICY IT IS THIS FORM OF RANDOM VANDALISM YOU PRONOUNCE FULL RESTITUTION AND UP TO 200 HOURS OF COMMUNITY SERVICE ARE NOT PUNISHMENT ENOUGH FOR GRAFFITI PERPETRATORS YOU STATE MAYBE IT'S TIME TO BRING BACK THE PUBLIC STOCKADES BUT WHAT WILL SAVE URBAN AREAS FROM THE BLIGHT OF GRAFFITI LOCAL GROCERY STORES BLOCK COMMITTEES NEIGHBORHOOD PATROLS COMMUNITY ECONOMIC DEVELOPMENT EFFORTS NO THE BILLBOARD INDUSTRY WILL SAVE US FROM GRAFFITI THAT'S RIGHT WE NEED MORE TOBACCO BILLBOARDS MORE ALCOHOL BILLBOARDS AND MORE AUTOMOBILE BILLBOARDS TO FIGHT THE BLIGHT OF GRAFFITI IT'S ALMOST TOO MUCH TO BELIEVE YOU'RE NOT JOKING BUT NO YOUR CONCLUSION MAKES IT ALL TOO CLEAR WHERE PROPERTY IS IN PRIVATE HANDS IT IS MOST JEALOUSLY PROTECTED AIN'T IT THE TRUTH 9308270095 930827 MANAGEMENT GERSTNER TRIES TO STEM FLIGHT OF TOP TALENT AS HE SEEKS TO ACHIEVE IBM TURNAROUND BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL MANAGING AT INTERNATIONAL BUSINESS MACHINES CORP USED TO BE THE MOST EXALTED THING SAYS TOM WHITESIDE WHO RECENTLY LEFT IBM TO BECOME PRESIDENT OF MICROCHIP MAKER MIPS TECHNOLOGIES INC NOW HE SAYS IT'S MORE LIKE SOMEBODY IN A BUNKER REFERRING TO HIS NEW JOB HE ADDS IT'S MORE FUN BUILDING A BRIDGE THAN PUTTING SANDBAGS ON A LEVY AT IBM THE SANDBAGGING JOB BELONGS TO THE COMPANY'S NEW CHAIRMAN LOUIS V GERSTNER AS HE STRUGGLES WITH LOSSES AND DOWNSIZING HE IS ALSO WORKING TO STEM A SPATE OF EXECUTIVE DEPARTURES IBM HAS LOST SOME VERY GOOD PEOPLE MR GERSTNER CONCEDED LAST MONTH IT WOULD BE CRAZY FOR US TO DENY THAT WE'RE DOING EVERYTHING WE CAN TO HANG ON TO OUR OUTSTANDING PEOPLE WITH REASON IF TOO MANY GOOD PEOPLE LEAVE IBM IT COULD TURN INTO A BRAIN DRAIN NOTEBERT GILBREATH PRESIDENT OF PROUDFOOT CHANGE MANAGEMENT A WINTER PARK FLA MANAGEMENT CONSULTING FIRM IN REBUILDING IBM MR GERSTNER NEEDS THOSE LEADINGEDGE THINKERS WHO ARE NOW LEAVING OR THINKING ABOUT LEAVING HIS HUMAN CAPITAL IS MORE VALUABLE THAN ANYTHING ELSE OF COURSE IN THE COMPUTER INDUSTRY VISIBLE EXECUTIVES AND STAR ENGINEERS SWITCH ALLEGIANCES FREQUENTLY AND DEPARTURES FROM IBM AREN'T NEW THOUSANDS OF IBMERS HAVE LEFT SINCE 1986 WHEN THE COMPANY STARTED OFFERING ATTRACTIVE RETIREMENT PACKAGES A NUMBER OF TOP EXECUTIVES NEAR RETIREMENT ARE ALSO MOVING OUT MAKING ROOM FOR MR GERSTNER'S NEW TEAM BUT SOME OF THE RECENT DEPARTURES HAVE BEEN PARTICULARLY GALLING MR WHITESIDE A 40YEAROLD MIDLEVEL EXECUTIVE WAS LEADING THE DEVELOPMENT OF THE COMPANY'S PROMISING POWERPC PROJECT IN AUSTIN TEXAS THREE ENGINEERS WHO WERE KEY TO THE PROJECT HAVE ALSO JUST LEFT THEY HAD COME TO IBM FROM DIGITAL EQUIPMENT CORP ONLY 15 MONTHS AGO NOW THE MAYNARD MASS COMPUTER SYSTEMS SUPPLIER HAS WOOED THEM BACK ANOTHER STAR DEPARTURE ABRAHAM PELED 47 A VICE PRESIDENT AND TOP ENGINEER WHO SHEPHERDED SOME OF IBM'S MOST IMPORTANT PROJECTS FROM THE LABORATORY TO THE MARKETPLACE HE LEFT EARLIER THIS MONTH FOR PERSONAL REASONS EFFORTS TO PERSUADE THESE AND OTHER PEOPLE TO STAY FAILED FOR VARIOUS REASONS BUT CERTAINLY A KEY ISSUE IS HOW QUICKLY IBM CAN TURN AROUND NOT ONLY ITS FINANCES BUT ALSO ITS CULTURE SEVERAL SAID THEY HAD HAD ENOUGH OF IBM'S RECENT UPHEAVALS MR PELED WHO LEFT TO BECOME SENIOR VICE PRESIDENT OF AN ISRAELI COMPANY CALLED ELRON ELECTRONIC INDUSTRIES LTD BELIEVES IBM WILL TURN AROUND BUT OBSERVES THAT THE UNCERTAIN TIMING FRUSTRATES SOME PEOPLE I THINK IT'S MORE A QUESTION OF HOW LONG IS THE TUNNEL THAN WHETHER THERE IS LIGHT HE SAYS IN ADDITION TO MESSRS WHITESIDE AND PELED RECENT NOTABLE DEPARTURES INCLUDE WILLIAM WILSON 49 ASSISTANT GENERAL MANAGER FOR MARKETING OF ENTERPRISE SYSTEMS THE COMPANY'S MAINFRAME BUSINESS WHO HASN'T ANNOUNCED HIS PLANS YET WILLY SHIH 42 A HIGHLY REGARDED DIRECTOR OF IBM'S FASTGROWING PERSONAL ADVANCED WORKSTATIONS BUSINESS WHO WENT TO DIGITAL EQUIPMENT SAMUEL INMAN III 42 THE FORMER PRESIDENT OF THE PERSONAL COMPUTER UNIT'S HIGHLY SUCCESSFUL MARKETING AND DISTRIBUTION ARM WHO LEFT TO HEAD INGRAM MICRO INC ONE OF THE LARGEST COMPUTER DISTRIBUTORS IN THE COUNTRY LUCIE J FJELDSTAD 49 ONE OF IBM'S HIGHEST RANKING FEMALE EXECUTIVES WHO WAS VICE PRESIDENT AND GENERAL MANAGER IN CHARGE OF IBM'S FAST GROWING MULTIMEDIA PRODUCTS SHE HASN'T ANNOUNCED HER PLANS LUCY BANEY 46 AN IMPORTANT DEVELOPMENT STRATEGIST FOR THE HOT CLIENT/SERVER MARKET WHICH CONSISTS OF COMPUTER NETWORKS LINKED TO A CENTRAL DATA COMPUTER SHE HAS ANNOUNCED SHE WILL LEAVE IBM AT THE END OF SEPTEMBER BUT HASN'T DECIDED WHAT SHE'LL DO NEXT MANY SAY THAT LEAVING IBM WAS HARD BUT THAT THEY FELT COMPELLED TO PURSUE NEW OPPORTUNITIES MR WHITESIDE SAYS HE SEARCHED HIS SOUL FOR TWO MONTHS BEFORE DECIDING TO QUIT AFTER 11 YEARS AT IBM HE WAS HEADING THE HIGHPRIORITY EFFORT TO BREAK INTEL CORP'S NEAR MONOPOLY ON PERSONALCOMPUTER CHIPS BUT THE OPPORTUNITY TO RUN A SMALL NIMBLE COMPANY FINALLY DREW HIM TO MIPS THE MOUNTAIN VIEW CALIF SUBSIDIARY OF SILICON GRAPHICS INC AND HE COULDN'T HELP NOTICING THE DIFFERENT ATMOSPHERE THERE EVERYBODY SEEMED TO BE HAVING FUN HE GLEEFULLY OBSERVED A WATER CANNON BATTLE BETWEEN EMPLOYEES CELEBRATING THE COMPLETION OF A DATABASE DESIGN A COMPANY OUTING TO JURASSIC PARK AND SOMETHING IN THE BUDGET CODE CALLED MORALE MEANWHILE MR SHIH SAYS HE LEFT IBM SEEKING MORE RISK TAKING AND A COMMITMENT TO CHANGE HE'S NOW A DIGITAL VICE PRESIDENT DEVELOPING LOWEND ALPHA SYSTEMS A COMPETITOR TO IBM'S PERSONAL RISC SYSTEMS WHICH STANDS FOR REDUCED INSTRUCTION SET COMPUTER MR SHIH WHO HAD BEEN AT IBM 13 YEARS SAYS THAT AT DIGITAL HE HAS FOUND THE HEADROOM HE NEEDS TO SATISFY HIS AMBITIONS THIS BUSINESS IS SO DYNAMIC HE SAYS THAT THE ONLY THING THAT'S FOR SURE IS THAT IT CHANGES VERY QUICKLY YOU NEED TO BE QUICK ON YOUR FEET AND BE WILLING TO MAKE MISTAKES YOU HAVE TO EMPOWER YOUR MANAGEMENT TEAM TO DO WHAT THEY THINK NEEDS TO BE DONE CHARLES BURNS 46 FORMERLY A MANAGER WORKING ON NEW STRATEGIES FOR ENTERPRISE SYSTEMS AND NOW A CONSULTANT AT GARTNER GROUP SAYS THAT THE CULTURE AT IBM WAS TOO SLOW TO CHANGE AND THAT MANAGEMENT DID TOO MUCH SECONDGUESSING AT IBM MR BURNS WAS MANAGING AN IMPORTANT SEARCH FOR NEW USES FOR MAINFRAMES AS CLIENT/SERVERS BUT HE SAYS HE FOUND A LOT OF RESISTANCE LOWER DOWN IN THE ORGANIZATION AT THE LABORATORY LEVEL FOR EXAMPLE TO HELPING HIM DEVELOP SUCH PROJECTS SUCH PERCEPTIONS WORRY MR GERSTNER JUST DAYS BEFORE AN 8 BILLION RESTRUCTURING CHARGE AGAINST SECONDQUARTER EARNINGS FOR EXAMPLE HE SAID HE HAD SPENT TIME WITH SOMEBODY SIX LEVELS DOWN TRYING TO SAVE A REAL STAR ACCORDING TO GERALD CZARNECKI SENIOR VICE PRESIDENT FOR HUMAN RESOURCES AND ADMINISTRATION THE UNNAMED EMPLOYEE DECIDED TO STAY IBM IS TAKING OTHER STEPS TO TRY TO HANG ON TO ITS TALENT ONE OF MR GERSTNER'S FIRST DECISIONS WHEN HE TOOK OVER WAS TO OFFER 1200 TOP MANAGERS A SWAP OF THEIR DEVALUED STOCK OPTIONS SINCE THEN MR GERSTNER AND MR CZARNECKI HAVE BEEN CRISSCROSSING THE COUNTRY TO ASSURE EMPLOYEES THAT IBM CARES ABOUT THEM THE COMPANY IS OFFERING MORE PERFORMANCE BONUSES TO EMPLOYEES AT ALL LEVELS AND IS ENCOURAGING MANAGERS TO STAY IN CLOSE TOUCH WITH THEIR WORKERS SO THEY DON'T GET DEMORALIZED WHEN YOU'RE GOING THROUGH TUMULTUOUS CHANGE AND CHALLENGE YOU HAVE TO MAKE SURE THAT THE PEOPLE WHO ARE GOING TO MAKE A DIFFERENCE HAVE CONFIDENCE IN THE COMPANY MR CZARNECKI SAYS MEANWHILE IBM HAS ALSO BEEN RECRUITING SINCE THE BEGINNING OF THE YEAR IT HAS HIRED 24 EXECUTIVES FROM OUTSIDE MORE THAN EVER BEFORE SIX OF THEM INCLUDING MR GERSTNER AND MR CZARNECKI SIT AT THE TOP BUT FOR MOST OF IBM MORALE ISN'T LIKELY TO IMPROVE UNTIL THE COMPANY RETURNS TO PROFITABILITY AFTER FOUR STRAIGHT QUARTERLY LOSSES FEAR IS ERODING MANY EMPLOYEES' WILL TO HOLD ON MR WILSON SAYS HE DECIDED TO LEAVE IBM BECAUSE HE WANTED TO DO SOMETHING DIFFERENT BUT HE CONCEDES THAT THE MOOD AT THE COMPANY ISN'T GREAT IBM IS GOING THROUGH LOTS OF CHANGES HE SAYS AND PEOPLE WHO HAVE BEEN WITH IBM QUITE SOME TIME PROBABLY HAVE A HEIGHTENED SENSE OF INSECURITY ABOUT THEIR FUTURE AND THE FUTURE OF THE COMPANY YOU HAVE A LOT OF IBMERS WHO ARE REALLY WORRIED FOR THE FIRST TIME 9308270094 930827 ACCOUNT DEFICIT NARROWS IN SEOUL SEOUL SOUTH KOREA THIS COUNTRY'S CURRENT ACCOUNT DEFICIT IN JULY SHARPLY NARROWED TO 164 MILLION FROM A DEFICIT OF 576 MILLION A YEAR EARLIER DUE TO A TRADE SURPLUS THE CENTRAL BANK OF KOREA SAID THE JULY DEFICIT ALSO NARROWED SHARPLY FROM THIS YEAR'S LARGEST MONTHLY CURRENT ACCOUNT DEFICIT OF 5913 MILLION IN JUNE WHEN IT SWITCHED FROM A SURPLUS OF 240 MILLION IN MAY AS A RESULT SOUTH KOREA'S CURRENT ACCOUNT DEFICIT IN THE FIRST SEVEN MONTHS OF THIS YEAR FELL TO 119 BILLION FROM A SHORTFALL OF 504 BILLION IN THE PRECEDING YEAR ACCORDING TO THE BANK IN JULY SOUTH KOREA'S TRADE ACCOUNT SHIFTED TO A SURPLUS OF 1647 MILLION FROM A SHORTFALL OF 444 MILLION A YEAR AGO SAID THE BANK THE JULY TRADE SURPLUS WAS ALSO A REVERSAL FROM A DEFICIT OF 4754 MILLION IN JUNE 9308270093 930827 SPEAR LEEDS IS DISCIPLINED BY BIG BOARD STOCK EXCHANGE ALSO ACTS AGAINST NEWHARD COOK AND TEN INDIVIDUALS BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NEW YORK STOCK EXCHANGE SAID IT TOOK DISCIPLINARY ACTION AGAINST TWO FIRMS AND 10 INDIVIDUALS FOR VIOLATIONS OF EXCHANGE RULES AND FEDERAL SECURITIES LAWS SPEAR LEEDS & KELLOGG NEW YORK AND CHARLES N SWEENEY JR HEAD OF ITS FUTURES DIVISION WERE DISCIPLINED FOR THEIR HANDLING OF A LARGE ACCOUNT TRANSFERRED FROM THE NEW YORK FUTURES EXCHANGE BY FUTURES EXCHANGE MEMBER MARVIN GOODMAN IN 1990 THE ACCOUNT HAD 69 SUBACCOUNTS AND SUBSEQUENTLY 19 ADDITIONAL SUBACCOUNTS WERE OPENED ALL OF WHICH MR GOODMAN MAINTAINED INVOLVED HIS OWN FUNDS SPEAR LEEDS HANDLES ONLY PROFESSIONAL TRADING ACCOUNTS AND NOT COMMODITY POOLS OR OTHER MANAGED ACCOUNTS THE STOCK EXCHANGE SAID THE FIRM FAILED TO MAINTAIN RECORDS CONCERNING INDIVIDUALS NAMED IN SOME OF THE SUBACCOUNTS AND MR SWEENEY DIDN'T QUESTION MR GOODMAN'S EXPLANATION THAT THE SUBACCOUNTS WERE USED TO KEEP SCORE ACTUALLY THE EXCHANGE SAID THE BALANCES IN SOME OR ALL OF THE SUBACCOUNTS WERE FUNDS PROVIDED BY INVESTORS TO MR GOODMAN FOR MANAGEMENT THE ACCOUNT WHICH AT ONE TIME HAD DEBTS OF 193 MILLION AND OTHER BALANCES OF 214 MILLION WAS FROZEN IN 1991 FOLLOWING AN EXAMINATION AND THE COMMODITY FUTURES TRADING COMMISSION FILED AN ACTION ALLEGING THAT MR GOODMAN DEFRAUDED CUSTOMERS AND SENT CUSTOMERS MISLEADING STATEMENTS HE WAS ENJOINED FROM ACTING AS A COMMODITY POOL OPERATOR AND FUTURES COMMISSION MERCHANT SPEAR LEEDS WAS FINED 75000 DEEMED HALF PAID IN VIEW OF A 37500 FINE IMPOSED BY THE NEW YORK FUTURES EXCHANGE MR SWEENEY WAS CENSURED NEITHER THE FIRM NOR MR SWEENEY ADMITTED OR DENIED THE VIOLATIONS NONE OF THE FIRMS OR INDIVIDUALS COULD BE REACHED OR HAD ANY COMMENT IN ANOTHER CASE FORMER MEMBER FIRM NEWHARD COOK & CO ST LOUIS WAS CENSURED WITHOUT ADMITTING OR DENYING VIOLATIONS OF CERTAIN FINANCIAL AND RECORDKEEPING REQUIREMENTS HARRY WALLACE NEWHARD CHAIRMAN WAS BARRED THREE YEARS FROM ACTING IN ANY SUPERVISORY CAPACITY OTHER THAN SALES SUPERVISION HE DIDN'T ADMIT OR DENY ALLEGATIONS EDWARD EARLE MORITT ARMONK NY A FORMER INDEPENDENT FLOOR BROKER AFTER A CONTESTED HEARING WAS BARRED 18 MONTHS FOR TRADING IN AN ACCOUNT IN WHICH ANOTHER FLOOR BROKER HAD AN INTEREST THE EXCHANGE SAID MR MORITT MADE TRADES ON SEVERAL OCCASIONS WHEN HIS NET CAPITAL WAS BELOW THE REQUIRED LEVEL THE SECOND TIME A HEARING PANEL HAS FOUND HIM GUILTY OF A NET CAPITAL VIOLATION GREGORY BERNARD SULLIVAN PHOENIX EXECUTIVE VICE PRESIDENT OF A FORMER MEMBER FIRM WAS BARRED IN A SUPERVISORY CAPACITY FOR SIX MONTHS WITHOUT ADMITTING OR DENYING FINDINGS THE EXCHANGE SAID HE APPROVED PREPAYMENT BY THE FIRM OF A REVOLVING LOAN AT A TIME WHEN THE FIRM'S CAPITAL POSITION DIDN'T PERMIT SUCH PAYMENT JAMES E KNICKERBOCKER GALLOWAY OHIO WAS BARRED TWO YEARS WITHOUT ADMITTING OR DENYING SALES PRACTICE VIOLATIONS INCLUDING RECOMMENDING UNSUITABLE TRANSACTIONS AND MAKING TRADES WITHOUT WRITTEN AUTHORIZATION FROM THE CUSTOMER LEONARD FEINGOLD EMERSON NJ WAS BARRED FOUR MONTHS FOR SALES PRACTICE VIOLATIONS MAKING OPTIONS TRADES IN AN ACCOUNT WITHOUT WRITTEN AUTHORIZATION HE DIDN'T ADMIT OR DENY CHARGES ORVIS M MESTON LINCOLN NEB WAS BARRED ONE MONTH WITHOUT ADMITTING OR DENYING FINDINGS THAT HE MADE UNAUTHORIZED TRANSACTIONS IN CUSTOMER ACCOUNTS ROBERT HARRY JONES YOUNGSTOWN OHIO AFTER A CONTESTED HEARING WAS FINED 5000 FOR MAKING UNSUITABLE TRADES IN A CUSTOMER'S ACCOUNT TWO INDIVIDUALS WERE BARRED FOR MISAPPROPRIATION MARGARET MALERBA WESTHAMPTON NY DIDN'T ADMIT OR DENY SHE MISAPPROPRIATED 118118 DENISE MARY DONNELLY PHOENIXVILLE PA AFTER A CONTESTED HEARING WAS FOUND GUILTY OF MISAPPROPRIATING ABOUT 7360 9308270092 930827 DSC GETS CONTRACT EXTENSION DALLAS DSC COMMUNICATIONS CORP SAID IT SIGNED A TWOYEAR EXTENSION OF A THREEYEAR CONTRACT TO PROVIDE TELECOMMUNICATIONS EQUIPMENT TO AMERITECH CORP THE VALUE OF THE CONTRACT EXTENSION IS ESTIMATED AT 200 MILLION A SPOKESMAN FOR THE TELECOMMUNICATIONS EQUIPMENT MAKER SAID THE NEW AGREEMENT EXTENDS THE CONTRACT THROUGH 1997 THE CONTRACT CALLS FOR DSC TO SUPPLY 900000 ADDITIONAL LINES OF FIBERBASED OPTICAL NETWORK EQUIPMENT FOR A FIBEROPTIC NETWORK BEING BUILT BY AMERITECH 9308270091 930827 MARKETING & MEDIA HARCOURT NET JUMPED 51 IN 3RD PERIOD LED BY PUBLISHING GAINS NEWTON MASS HARCOURT GENERAL INC LED BY GAINS IN ITS PUBLISHING BUSINESS POSTED A 51 RISE IN NET INCOME FOR ITS THIRD QUARTER THE DIVERSIFIED PUBLISHING INSURANCE RETAIL AND THEATER CONCERN WHICH BOUGHT PUBLISHER HARCOURT BRACE JOVANOVICH INC IN FALL 1991 POSTED NET OF 1068 MILLION OR 134 A SHARE IN THE THIRD QUARTER ENDED JULY 31 UP FROM NET OF 706 MILLION OR 89 CENTS A SHARE A YEAR EARLIER REVENUE IN THE QUARTER INCREASED 17 TO 116 BILLION FROM 9921 MILLION IN THE YEAREARLIER QUARTER BOOSTING HARCOURT GENERAL'S EARNINGS WERE GAINS BY ITS PUBLISHING DIVISION NOW THE COMPANY'S SECONDLARGEST BUSINESS WITH 429 MILLION IN THIRDQUARTER REVENUE WHICH REPORTED OPERATING PROFIT OF 153 MILLION UP 55 FROM 985 MILLION A YEAR EARLIER ROBERT J TARR PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY'S FOURTH QUARTER NET WOULD BE SIGNIFICANTLY HIGHER THAN NET OF 20 MILLION OR 25 CENTS A SHARE IN 1992'S FOURTH QUARTER THE SECOND HALF OF OUR FISCAL YEAR IS TYPICALLY A VERY STRONG PERIOD FOR EDUCATIONAL TEXTBOOK SALES AS SCHOOL DISTRICTS ORDER BOOKS FOR THE FALL HE SAID FOR THE NINE MONTHS HARCOURT GENERAL REPORTED NET OF 1444 MILLION OR 181 A SHARE ON REVENUE OF 313 BILLION IN THE YEAREARLIER NINE MONTHS THE COMPANY EARNED 4746 MILLION OR 6 A SHARE WHICH INCLUDED A GAIN OF 4196 MILLION FROM THE PURCHASE OF HARCOURT BRACE'S DEBT AT A DISCOUNT AND A CHARGE OF 39 MILLION FOR A CHANGE IN ACCOUNTING FOR POSTRETIREMENT HEALTH BENEFITS 9308270089 930827 BUSINESS BRIEF REYNOLDS TO PURCHASE MILLER'S OPERATIONS FOR BEVERAGE CANS RICHMOND VA REYNOLDS METALS CO SAID IT AGREED TO PURCHASE MILLER BREWING CO'S ALUMINUM BEVERAGE CAN AND ENDMANUFACTURING OPERATIONS MAKING REYNOLDS THE WORLD'S THIRDLARGEST COMMERCIAL CAN PRODUCER THE PURCHASE ESTIMATED AT AROUND 100 MILLION WILL INCREASE REYNOLDS'S ANNUAL ALUMINUM CAN AND ENDPRODUCTION TO 16 BILLION FROM ABOUT 11 BILLION MILLER A UNIT OF PHILIP MORRIS COS SAID IT PLANS TO CONCENTRATE ON ITS BREWING OPERATIONS MILLER'S SALE IS A PURELY ECONOMIC DECISION SAID ROY BURRY AN ANALYST WITH KIDDER PEABODY & CO MILLER IS A VERY STABLE COMPANY AND THERE'S BEEN NO PROBLEM WITH ITS CAN AND ENDOPERATIONS REYNOLDS'S CASH PURCHASE WILL BE FINANCED THROUGH SHORTTERM BORROWING AGAINST EXISTING LINES OF CREDIT THE COMPANY SAID IT WILL PAY BACK THE BORROWED FUNDS BY SELLING SOME NONSTRATEGIC ASSETS OVER THE NEXT FOUR TO EIGHT MONTHS THE BUY MAKES A LOT OF SENSE FOR REYNOLDS SAID WAYNE ATWELL AN ANALYST WITH MORGAN STANLEY & CO IT CAN EXPAND ITS CORE BUSINESS OF ALUMINUM WHILE SELLING SOME ASSETS IT'S WANTED TO GET RID OF FOR A LONG TIME ANALYSTS PREDICTED THE ASSETS WOULD BE IN REALESTATE AND GOLD MINING OPERATIONS THE PLANTS TO BE PURCHASED BY REYNOLDS ARE IN MILWAUKEE FULTON NY FORT WORTH TEXAS REIDSVILLE NC AND MOULTRIE GA THEY EMPLOY MORE THAN 800 PEOPLE 9308270088 930827 MARKETING & MEDIA CBS CONFIRMS SHIFT IN STANCE ON CABLE FEES BY DENNIS KNEALE AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK CBS INC TRIED TO PUT A BRAVE FACE ON ITS APPARENT SURRENDER IN THE BATTLE TO FORCE BIG CABLE OPERATORS TO BEGIN PAYING NEW PROGRAMMING FEES TO CBSOWNED STATIONS IN A STATEMENT CBS CONFIRMED THAT IT IS IN CONVERSATIONS WITH SEVERAL BIG CABLE OPERATORS ABOUT STARTING A NEW CABLE CHANNEL THAT CABLE SYSTEMS WOULD PAY CBS TO CARRY IN LIEU OF PAYING NEW PROGRAMMING FEES DIRECTLY TO CBS STATIONS BUT THE BROADCASTER INSISTED THAT WE ARE ALSO CONTINUING TO NEGOTIATE CASH DEALS IN OUR MARKETS CBS HAS BEEN THE LONE HOLDOUT AMONG THE MAJOR BROADCAST COMPANIES IN INSISTING THAT CABLE SYSTEMS SHOULD HAVE TO PAY CASH TO AIR THE FARE OF LOCAL TV STATIONS UNDER THE RETRANSMISSION CONSENT RULES OF THE NEW CABLE LAW RIVALS ABC NBC AND FOX HAVE ALL BUT GIVEN UP TRYING TO DEMAND CASH INSTEAD STARTING NEW CABLE CHANNELS AND GETTING CABLE SYSTEMS TO PAY MONTHLY FEES FOR THE NEW SERVICES BUT NOW CBS ITSELF APPEARS READY TO TAKE A SIMILAR TACK INDUSTRY EXECUTIVES SAID COMCAST CORP THE NATION'S FOURTHLARGEST CABLE COMPANY HAS ALREADY SIGNED A PACT THAT LETS IT CARRY CBSOWNED STATIONS FREE OF CHARGE IN EXCHANGE FOR PAYING CBS FOR A NEW CABLE CHANNEL IN ADDITION THE NATION'S NO 1 CABLE OPERATOR TELECOMMUNICATIONS INC IS IN SIMILAR TALKS AS ARE NO 2 TIME WARNER INC AND THE NO 3 CONCERN CONTINENTAL CABLEVISION INC EXECUTIVES SAID IF CBS CONSENTS TO DEALS WITH THOSE FOUR OPERATORS IT WILL HAVE AGREED TO FORGO CASH PAYMENTS FROM CABLE SYSTEMS COVERING ABOUT ONETHIRD OF THE NATION'S NEARLY 60 MILLION CABLE HOMES VIRTUALLY ALL OF THE NATION'S LARGEST CABLE COMPANIES HAVE STEADFASTLY REFUSED TO MAKE CASH PAYMENTS FOR BROADCAST STATIONS WHICH OTHERWISE AIR ON FREE OVERTHEAIR TELEVISION FEES FOR A NEW CBS CABLE CHANNEL WOULD BE SIGNIFICANTLY SMALLER THAN THE CASH PAYMENTS ALLOWED UNDER THE NEW CABLE LAW TELECOMMUNICATIONS OWNS CABLE SYSTEMS IN CHICAGO WHERE CBS OWNS ITS AFFILIATE WE'RE IN PROMISING CONVERSATIONS WITH CBS SAYS A TCI SPOKESMAN WHO BLUNTLY ADDS WE HAVEN'T CHANGED OUR POSITIONS IN TERMS OF REFUSING TO PAY CASH FOR RETRANSMISSION CONSENT DRAW YOUR OWN CONCLUSIONS UNTIL NOW CBS HAD BEEN CRITICAL OF ITS RIVALS' APPROACH IN USING THE LAW TO START NEW CABLE CHANNELS RATHER THAN BENEFIT THEIR BROADCAST BUSINESS CBS SENIOR VICE PRESIDENT JAY KRIEGEL WHO WAS A PRIME FORCE IN PERSUADING CONGRESS TO INCLUDE THE RETRANSMISSION MEASURE IN THE NEW CABLE LAW HAD CONSISTENTLY VOWED TO AVOID CAVING IN TO CABLE FIRMS WE'VE BEEN TALKING TO CABLE OPERATORS THE PAST EIGHT MONTHS WE'RE INTERESTED IN CASH PAYMENTS BECAUSE THAT'S HOW THE ENTIRE CABLE INDUSTRY PAYS FOR PROGRAMMING MR KRIEGEL INSISTED IN AN INTERVIEW EARLIER THIS MONTH HE DIDN'T RETURN CALLS SEEKING COMMENT NOR DID CBS BROADCAST GROUP PRESIDENT HOWARD STRINGER IN AN EFFORT TO SOOTHE AFFILIATE STATIONS THAT MAY FEEL THEIR OWN CASH DEMANDS HAVE BEEN UNDERCUT BY CBS'S REVERSAL IN STRATEGY CBS STRESSED THAT THE NEW CHANNEL WOULD PROVIDE OPPORTUNITIES FOR PARTICIPATION BY CBS AFFILIATES ACROSS THE COUNTRY GENERAL ELECTRIC CO'S NBC UNIT SIMILARLY TOOK THAT APPROACH FOR AMERICA'S TALKING A NEW ALLTALK CHANNEL THAT WILL LET NBC AFFILIATES SELL LOCAL AD SLOTS AND KEEP REVENUE BUT IN AGREEING TO START WHAT IS BELIEVED TO BE A NEWSORIENTED CABLE CHANNEL CBS HAS ESSENTIALLY AGREED TO FORGO A STREAM OF NEW NET REVENUE FROM PROGRAMMING FEES IN FAVOR OF WHAT COULD BE A COSTLY VENTURE TO START THE CABLE DIAL IS ALREADY LADEN WITH MYRIAD NEWS AND PUBLICAFFAIRS SERVICES IN ADDITION TO CNN AND A SISTER HEADLINE SERVICE THEY INCLUDE TWO CSPAN OUTLETS NBC'S OWN CNBC CHANNEL A NUMBER OF ALLNEWS LOCAL CHANNELS ALREADY OPERATING ON CABLE SYSTEMS AND STILL MORE TO COME AS A RESULT OF RETRANSMISSION DEALS BETWEEN CABLE FIRMS AND LOCAL STATIONS 9308270087 930827 LETTERS TO THE EDITOR DON'T WORRY WE'RE WORRYING CONTRARY TO THE VIEW EXPRESSED BY THE HEADLINE ON YOUR JULY 28 ARTICLE THE DON'T WORRY BE HAPPY' ROUTE TO ENERGY POLICY THE CLINTON ADMINISTRATION DOES RECOGNIZE THE IMPORTANCE OF THE UNITED STATES' ENERGY SECURITY YOU RECOGNIZE THIS AT THE END OF THE ARTICLE TWELVE YEARS OF NEGLECT HAS HELPED CREATE THE IMPORT PROBLEM THAT YOU ACCURATELY IDENTIFIED TO ADDRESS THIS PROBLEM THE PRESIDENT HAS DIRECTED THE DEPARTMENT OF ENERGY TO ACCELERATE RESEARCH ON MORE EFFICIENT USE OF ENERGY AND PROMOTE THE USE OF ALTERNATIVE FUELS SUCH AS NATURAL GAS ELECTRIC CARS ETHANOL AND METHANOL THEREBY REDUCING THE NEED FOR OIL IMPORTS WE RECOGNIZE THAT THE TRANSFER OF WEALTH ACCOMPANYING THE RISE IN IMPORTS DOES THIS ECONOMY NO GOOD THE DECLINE OF THE DOMESTIC OIL AND GAS INDUSTRY ALSO JEOPARDIZES A TRADITIONAL LARGE BASE OF HIGHTECHNOLOGYHIGHWAGE JOBS WHICH CAN BE PERMANENTLY LOST TO FOREIGN COMPETITORS IN ADDITION AS YOU POINT OUT THE DEPARTMENT OF ENERGY IS PREPARING A DOMESTIC ENERGY INITIATIVE TO ADDRESS OUR CRITICAL NEED TO INCREASE DOMESTIC ENERGY SUPPLIES THE INITIATIVE WILL BE PRESENTED THIS FALL 9308270086 930827 AMERICAN CYANAMID ACQUISITION WAYNE NJ AMERICAN CYANAMID CO SAID IT AGREED TO ACQUIRE SHELL PETROLEUM CO'S CROPPROTECTION BUSINESSES THE PHARMACEUTICAL AND CHEMICAL CONCERN DIDN'T DISCLOSE TERMS OF THE PACT IT STRUCK WITH THE UNIT OF ROYAL DUTCH/SHELL GROUP SHELL'S CROPPROTECTION BUSINESSES HAD ABOUT 700 MILLION IN SALES LAST YEAR ALL IN MARKETS OUTSIDE NORTH AMERICA IN MIDJUNE THE TWO COMPANIES ANNOUNCED THAT THEY WERE IN NEGOTIATIONS REGARDING CYANAMID'S POSSIBLE PURCHASE OF SHELL'S PESTICIDE LINES 9308270085 930827 TWOHOUR LUNCHES IN MADRID REPLACED BY TAKEOUT MEALS SPANISH RESTAURANTS NOW OFFER HOME DELIVERY TO KEEP UP WITH FASTPACED LIFESTYLES BY CARLTA VITZTHUM SPECIAL TO THE WALL STREET JOURNAL MADRID AH THE HEAPING PLATE OF SAVORY PAELLA WITH A GLASS OR TWO OF RED WINE AND THEN THE LONG SIESTA IN THE STILL AIR OF THE MIDAFTERNOON HEAT FORGET IT THESE DAYS MANY URBAN SPANIARDS ARE GRABBING THE PHONE TO DIAL UP TELEPAELLA OR TELETORTILLA FOR FAST EATS SPAIN'S FAMOUS TWOHOUR LUNCH AT LEAST IN BIG CITIES IS DRIFTING OFF INTO THE REALM OF NOSTALGIA AMID CHANGING LIFESTYLES AND A GROWING LIST OF HOMEDELIVERY FASTFOOD OPERATIONS BESIDES THE AFOREMENTIONED THERE'S TELEPESCAITO FRIED FISH AND TELEMARISCO SEAFOOD ALL HAVE SPRUNG UP IN THE PAST TWO YEARS TOUTING VICTUALS DELIVERED INSIDE AN HOUR WHY ALL OF A SUDDEN SO MUCH FAST FOOD IN SUCH A RELAXEDPACE SOCIETY THINGS CHANGE SAYS ANTONIO VALERO WISTFULLY AS HE STANDS IN FRONT OF HIS TELEPAELLA WATCHING A DELIVERYMAN LOAD UP A PLATTER OF RICE ON THE BACK OF HIS MOTORBIKE ONE MUST KEEP UP NOT LONG AGO ORDERING OUT RATHER THAN GOING OUT WAS UNHEARD OF IN SPAIN DRIFTING FROM ONE TAVERN TO ANOTHER SNACKING ON DISHES OF BABY CALAMARI STUFFED PEPPERS AND BLOOD SAUSAGES WAS ALL THE FUN LUNCH WAS USUALLY A BIG FAMILY AFFAIR FOLLOWED BY A NAP TO SLEEP IT OFF MORE AND MORE WOMEN WORK AND THEY DON'T WANT TO COOK FOR MEN ANYMORE CONTENDS RICARDO MORALES THE 25YEAROLD COOWNER OF TORTIYA A PLAY ON WORDS THAT MEAN POTATO OMELET NOW MY GRANDMOTHER USED TO MAKE GREAT TORTILLAS BUT HER GRANDDAUGHTER DOESN'T WANT TO INDEED THE BOOM IN HOMEDELIVERY SERVICES REFLECTS MANY OF THE CHANGES SWEEPING THROUGH SPANISH SOCIETY AS THE COUNTRY ADAPTS TO THE NORMS AND RIGORS OF EUROPEAN COMMUNITY MEMBERSHIP LONG LUNCH BREAKS AND LATE NIGHTS ON THE TOWN ARE SLOWLY FALLING VICTIM TO SPAIN'S GROWING COMPETITIVE SPIRIT INSIDE TELEPAELLA'S VESTIBULE ESTER STANDS BEHIND AN OPEN WINDOW BARKING ORDERS TO GUILLERMO THE COOK HOVERING OVER THE POTS IN THE KITCHEN BEHIND HER THE PHONE RINGS SORRY THAT'S OUT OF OUR DELIVERY ZONE SHE SAYS AFTER ANSWERING BUT THANKS FOR CALLING A WEEKEND NEWS ARTICLE SINGING TELEPAELLA'S PRAISES HAS DRAWN LOTS OF ATTENTION TO ITS SEAFOOD AND CHICKEN RICE DISHES UNFORTUNATELY ESTER SAYS REACHING FOR ANOTHER CALL THEY FORGOT TO MENTION THAT DELIVERY IS LIMITED AFTER JUST FIVE MONTHS IN BUSINESS TELEPAELLA DELIVERS SOME 40 PAELLAS A DAY DURING THE WEEK AND MORE THAN 60 A DAY ON WEEKENDS HEFTY NUMBERS FOR THE PAINSTAKINGLY PREPARED DISH BROKERS BANKERS CURRENCY DEALERS AND OTHERS ON A EUROPEAN SCHEDULE ARE BIG CLIENTS BUT SO TOO ARE HOSPITALS WORKSHOPS PUBS BEAUTY SALONS AND MASSAGE PARLORS IN THE EVENINGS IT'S WEARY BREADWINNERS AND TVTIED COUCH POTATOES WHO ORDER OUT THE MAN WIDELY CREDITED WITH THE FASTFOOD HOMEDELIVERY PHENOMENON IN MADRID IS LEOPOLDO FERNANDEZ PUJALS A 46YEAROLD CUBANAMERICAN WHO FOUNDED TELEPIZZA SA IN OCTOBER 1987 FROM ONE OUTLET THEN CALLED PIZZA PHONE THE COMPANY HAS EXPANDED TO OPERATE 95 RESTAURANTS IN SPAIN AND 17 IN MEXICO PORTUGAL POLAND AND CHILE BY THE END OF THIS YEAR IT HOPES TO HAVE SOME 180 OUTLETS SERVING NEW YORKSTYLE PIZZA THROUGHOUT THE WORLD I AM A PIONEER MR SANCHIDRIAN SAYS PROUDLY SURVEYING HIS RESTAURANT WHICH DELIVERS TRADITIONAL FRIED FISH IN UNDER 30 MINUTES FIVE GREENANDRED TABLES ARE CROWDED TOGETHER UNDER A HIGH CEILING BULLFIGHTERS' PHOTOS LINE THE WALLS THE EXQUISITENESS SPANISH FOOD IS THE MOST DELICIOUS THERE IS HE EXPLAINS RAISING HIS VOICE ABOVE THE FLAMENCO MUSIC BLARING IN THE BACKGROUND PIZZA IS FOR THE YOUNG FOLK BUT THOSE WHO CAN PAY LIKE THE EXQUISITENESS AND QUALITY OF REAL SPANISH FOOD BUT CAN FRIED FISH TORTILLAS AND PAELLA STEAL MARKET SHARE FROM WELLESTABLISHED PIZZA HUT AND MCDONALD'S OPERATIONS NATURALLY SAYS ALFREDO VALERO ANTONIO'S 26YEAROLD SON AND THE ORIGINATOR OF TELEPAELLA THEY CAN OVERTAKE PIZZAS AND HAMBURGERS BECAUSE THEY'RE SPANISH AND SOMETIMES CHEAPER THAN GOING OUT FOR JUST 1600 PESETAS 1185 A HEAD A GROUP OF FOUR CAN ENJOY AN APPETIZER OF CLAMS AND COCKLES A SALAD A PAELLA AND RIOJA WINE IN THE COMFORT OF A PRIVATE HOME IN THE VALEROS'S EL CALDERO RESTAURANT IN CENTRAL MADRID THE SAME MEAL GOES FOR 3500 PESETAS PER PERSON MR MORALES OF TORTIYA IS A TOUCH MORE SKEPTICAL ONE PROBLEM HIS OWN BUSINESS HAS ENCOUNTERED IS THAT MOST SPANIARDS KNOW HOW TO MAKE A TORTILLA ALMOST FROM BIRTH AS BUSY OR LAZY AS THEY MIGHT BE THEY STILL FIND IT HARD TO SWALLOW THE IDEA OF ORDERING OUT FOR ONE IN ITALY NO ONE CALLS OUT FOR A PIZZA BECAUSE THEY CAN MAKE IT AT HOME HE EXPLAINS BUT IN SPAIN PIZZA IS A PRODUCT THAT SELLS THANKS TO AMERICAN MOVIES AND LOTS OF MARKETING ACCORDING TO EUROMONITOR THE LONDON CONSUMERMARKET CONSULTANCY PER CAPITA SALES OF FAST FOOD IN SPAIN ARE AMONG THE LOWEST IN EUROPE AT 960 A PERSON IN 1992 ONLY ITALY AT AN ESTIMATED 390 A HEAD HAD WEAKER SALES AMONG THE COUNTRIES SURVEYED THE US FIGURE WAS 31050 STILL THE NUMBER OF FASTFOOD OUTLETS IN SPAIN MAINLY IN BARCELONA AND MADRID MORE THAN DOUBLED FROM 1988 TO 1992 TO 394 UNITS ACCORDING TO EUROMONITOR SALES ALSO ROSE MORE THAN TWOFOLD TO 35 BILLION PESETAS FROM 138 BILLION PESETAS ANY CHANCE THAT SPAIN'S TRADITION OF LATENIGHT BARHOPPING MAY BE IN JEOPARDY HARDLY A VISIT TO TELEPESCAITO AFTER 10 PM ALLAYS SUCH FEARS MR SANCHIDRIAN STANDS BEHIND THE COUNTER SERVING A DRAUGHT BEER BARELY VISIBLE THROUGH SWIRLING SMOKE AND THE CROWD OF PEOPLE WHO THRONG THE ROOM MAKING MOVEMENT ALMOST IMPOSSIBLE AND IT'S ONLY A WEEKDAY 9308270083 930827 PEPPERAND SALT ME BREAK THE LAW IT WON'T BE DONE ABOUT MY MATTRESS TAG HAS ONLY ONE REAL FAILING RESULTS IN ITS DERAILING NARCISSIST STATUS IN A CLASP BY HIMSELF 9308270082 930827 THURSDAY'S MARKETS BOND RALLY CONTINUES BUT STOCKS DON'T FOLLOW BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE GOOD TIMES ROLLED ON IN THE BOND MARKET RAISING PROSPECTS THAT LONGTERM INTEREST RATES WILL BREAK BELOW THE 6 LEVEL BUT THE BOND RALLY FAILED TO CARRY THE STOCK MARKET ALONG AS PRICES ENDED MIXED THE DOLLAR FELL BOND PRICES WERE MODERATELY HIGHER MOST THE DAY THEN RALLIED SHARPLY LATE IN THE AFTERNOON SENDING THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR BOND DOWN TO 608 THE LOWEST LEVEL IN 16 YEARS THE YIELD ON THE TREASURY'S 10YEAR NOTE FELL TO 541 THE LOWEST SINCE MARCH 1971 THE BOND MARKET CONTINUES ON ITS MERRY WAY SAID DONALD FINE CHIEF MARKET ANALYST WITH CHASE SECURITIES THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 391 POINTS TO 364818 STANDARD & POOR'S 500STOCK INDEX INCHED UP 091 TO A RECORD 46104 AND THE NASDAQ COMPOSITE INDEX FELL 227 TO 73139 ANALYSTS SAID THE BOND RALLY WAS SPARKED BY FURTHER CONCERNS ABOUT THE STRENGTH OF THE ECONOMY THOSE WORRIES WERE EXACERBATED BY THE BUNDESBANK'S FAILURE TO REDUCE GERMAN INTEREST RATES HOPES HAD BEEN RISING THAT A CUT WAS IMMINENT GERMANY'S RELUCTANCE TO LOWER RATES INCREASES THE ODDS THAT THE GERMAN ECONOMY WILL STAY WEAKER LONGER SAID NANCY LAZAR AN ECONOMIST AT ISI GROUP A NEW YORK INVESTMENT COMPANY THAT IN TURN WILL HELP TO PROLONG THE ECONOMIC SLOWDOWN WORLDWIDE INCLUDING IN THE US SLUGGISH ECONOMIC GROWTH PROMISES TO KEEP INFLATION IN CHECK WHICH IS FUNDAMENTAL TO CONTINUED STRENGTH IN BONDS MR FINE OF CHASE SECURITIES SAID THE BOND MARKET DOESN'T TAKE A RIDE LIKE THIS UNLESS THE INFLATION OUTLOOK IS IMPROVING HE SAID THE KEY STORY IS THAT INFLATION IS SUBDUED AND NONTHREATENING AND THAT APPEARS TO BE THE CASE FOR 1994 TOO HE NOTED THAT ECONOMIC UNCERTAINTY HAS FORCED MANY CONSUMERS TO POSTPONE PURCHASES OF GOODS INSTEAD THE MONEY IS FINDING ITS WAY INTO THE FINANCIAL MARKET WHEN YOU'RE UNCERTAIN YOU PUT MONEY IN THE MATTRESS MR FINE SAID IN 1993 THE MATTRESS IS THE FINANCIAL MARKET RESTRAINED CONSUMER SPENDING COUPLED WITH CONTINUED LOW INFLATION WILL LIKELY PUSH INTEREST RATES EVEN LOWER MR FINE PREDICTS AFTER WE GET TO 6 ON THE LONG BOND THERE'S NO REASON WE CAN'T GO BEYOND THAT INTO THE 5 AREA EXPECTATIONS OF CONTINUED ECONOMIC MALAISE AND LITTLE INFLATION DROVE GOLD PRICES LOWER GOLD FOR DECEMBER DELIVERY SANK 470 AN OUNCE TO 37080 ANALYSTS SAID STOCK MARKET INVESTORS ALSO SHOWED SOME EDGINESS ABOUT THE ECONOMY EVEN WITH THE PLUNGE IN INTEREST RATES THE STOCK MARKET'S RALLY WITHERED BUT ANALYSTS SAID AFTER A STRING OF NEW HIGHS A LITTLE PROFITTAKING WAS EXPECTED MR FINE REMAINED UPBEAT ABOUT STOCK PRICES WITH RATES GOING DOWN THAT FAVORS THE STOCK MARKET HE SAID PROFITTAKING HIT TRANSPORTATION STOCKS WHICH HAVE RALLIED LATELY AIRLINES IN PARTICULAR CAME UNDER SOME SELLING PRESSURE THE DOW JONES TRANSPORTATION AVERAGE SANK 1325 POINTS TO 165142 WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 069 TO 11197 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2478 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1029 ISSUES ROSE AND 914 FELL BOND PRICES CLIMBED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED ONE POINT OR 10 FOR EACH 1000 FACE AMOUNT THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16675 MARKS AND 10435 YEN COMPARED WITH 16848 MARKS AND 10495 YEN WEDNESDAY 9308270081 930827 UNITED COMPANIES FINANCIAL BATON ROUGE LA UNITED COMPANIES FINANCIAL CORP SAID IT CALLED FOR REDEMPTION ITS 800000 SHARES OUTSTANDING OF 65 CUMULATIVE CONVERTIBLE PREFERRED STOCK HOLDERS OF THE PREFERRED SHARES MUST DECIDE BY SEPT 27 WHETHER TO CONVERT EACH OF THEIR SHARES INTO 2050 IN CASH OR 12195 COMMON SHARES THE FINANCE AND INSURANCE COMPANY SAID THE COMMON STOCK CLOSED YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING AT 3850 DOWN 25 CENTS THE PREFERRED SHARES WERE SOLD JUNE 29 FOR 25 A SHARE IN A PLACEMENT WITH 13 OVERSEAS INSTITUTIONAL INVESTORS THE INCREASE IN COMMON SHARES WOULD ENHANCE UNITED COMPANIES' STOCK FLOAT AND IMPROVE THE LIQUIDITY OF ITS EQUITY A SPOKESMAN SAID 9308270080 930827 MARKETING & MEDIA WARNER BROS SETS TWOMONTH DEADLINE FOR DECISION ON START OF FIFTH NETWORK BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TIME WARNER INC'S WARNER BROS STUDIO THE LARGEST SUPPLIER OF NETWORKTELEVISION PROGRAMMING EXPECTS TO DECIDE WITHIN ABOUT TWO MONTHS WHETHER TO LAUNCH A FIFTH NETWORK JOINING A NUMBER OF OTHER INDUSTRY PLAYERS WEIGHING A SIMILAR MOVE ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION WARNER BROS EXECUTIVES SETTLED ON THE TIMETABLE AFTER MEETING RECENTLY WITH STATION GROUP OWNERS INCLUDING TRIBUNE CO AND CHRISCRAFT INDUSTRIES INC TO PRESENT THE IDEA THEY SAID THE PLANNED NETWORK WOULD ALSO INCLUDE CARRIAGE ON CABLETV WARNER BROS' PARENT IS THE NATION'S SECONDLARGEST CABLETV OPERATOR MOREOVER WARNER BROS ENGAGED JAMIE KELLNER AS AN ADVISER BEFORE RESIGNING AS PRESIDENT OF FOX BROADCASTING CO IN JANUARY MR KELLNER GUIDED THAT FOURTH NETWORK FROM ITS INCEPTION IN 1986 PEOPLE FAMILIAR WITH THE SITUATION INDICATED THAT MR KELLNER IS THE LOGICAL CANDIDATE TO HEAD THE FIFTH NETWORK IF WARNER BROS DECIDES TO GIVE IT THE GOAHEAD A REPORT IN THE LOS ANGELES TIMES YESTERDAY PEGGED THE STARTUP COST AT AS MUCH AS 2 BILLION HOWEVER PEOPLE CLOSE TO THE STUDIO CALL THAT FIGURE HIGH THE STUDIO IS EXPLORING THE POSSIBILITY OF THE NETWORK SAID ONE PERSON CLOSE TO THE PLANNING IT IS PROBABLY SOMETHING THAT COULD COME TO A HEAD WITHIN 60 DAYS WHEN WE KNOW THAT WE CAN GET THE LINEUP OF LOCAL STATIONS PUT TOGETHER AND TIME SLOT CLEARANCES TO BE SUCCESSFUL BUT WARNER DESPITE ITS PROWESS IN TELEVISION PRODUCTION FACES HIGH HURDLES IN FORMING A FIFTH NETWORK NEWS CORP'S FOX NETWORK HAS ALREADY GRABBED SOME OF THE MOST ATTRACTIVE INDEPENDENT STATIONS IN TOP MARKETS TURNING THEM INTO LOYAL AFFILIATES IN ADDITION THE SYNDICATION MARKET THAT SUPPLIES INDEPENDENT STATIONS IS FAR STRONGER THAN IT WAS WHEN FOX STARTED UP IN THE MID1980S LEAVING FEWER PROGRAM SLOTS AVAILABLE FURTHERMORE THE MARKET FOR BROADCAST ADVERTISING HAS WEAKENED IN RECENT YEARS SO MUCH SO THAT SOME ANALYSTS QUESTION WHETHER THERE MAY BE ROOM FOR ONLY TWOANDAHALF NETWORKS RATHER THAN THE ORIGINAL BIG THREE WARNER FACES OTHER RIVALS INTERESTED IN LAUNCHING A FIFTH NETWORK FOR MONTHS NOW THE IDEA HAS BEEN UNDER CONSIDERATION BY PARAMOUNT COMMUNICATIONS INC OWNER OF A STATION GROUP AND MAJOR STUDIO AND QVC NETWORK INC WHOSE TOP EXECUTIVE AND PART OWNER IS FORMER FOX INC CHAIRMAN BARRY DILLER PARAMOUNT IS SAID TO HAVE EXPLORED THE IDEA WITH CHRISCRAFT WHICH CONTROLS EIGHT STATIONS WARNER BROS ADVISERS SAY THE STUDIO IS KEENLY AWARE OF THE CHALLENGES BUT IS UNDAUNTED LONGTIME WARNER STUDIO HEAD ROBERT DALY HAS EXTENSIVE BROADCASTING EXPERIENCE AS A FORMER PRESIDENT OF THE CBS ENTERTAINMENT DIVISION AND WITH THE POSSIBLE EXCEPTION OF QVC'S MR DILLER FEW OTHERS HAVE AS MUCH RECENT EXPERIENCE AS MR KELLNER HAS IN LAUNCHING A NETWORK MOROVER WITH 26 PRIMETIME SERIES INCLUDING MURPHY BROWN FULL HOUSE AND I'LL FLY AWAY TIME WARNER'S LORIMAR TELEVISION AND WARNER BROS ARE THE TOP SUPPLIERS TO THE NETWORKS IN JANUARY THE STUDIO LAUNCHED PRIME TIME ENTERTAINMENT NETWORK LINING UP MORE THAN 140 STATIONS COVERING 92 OF THE COUNTRY TO AIR ITS SERIES KUNG FU THE LEGEND CONTINUES AND LORIMAR'S TIME TRAX IN PRIMETIME ON WEDNESDAYS I THINK THEY WILL GO AHEAD WITH SOMETHING THAT EXTENDS WHAT THEY DO IN THE WEDNESDAY PRIMETIME BLOCK SAID LISBETH BARRON AN ANALYST WITH SG WARBURG SECURITIES IT'S A NATURAL COURSE TO TRY TO EXTEND IT OUT TO MORE BLOCKS THEY GOT A GOOD START ALREADY AS THE TOP SUPPLIER TO MAJOR NETWORKS WARNER BROS RUNS THE RISK OF ALIENATING ITS CUSTOMERS BY LAUNCHING A COMPETING NETWORK SAID ANALYST JOHN REIDY OF SMITH BARNEY SHEARSON BUT HE ADDS I WOULD NEVER UNDERESTIMATE WARNER'S INNOVATIVENESS AND AGGRESSIVENESS 9308270079 930827 DUAL DRILLING CO PURCHASES RIG DALLAS DUAL DRILLING CO SAID IT COMPLETED THE PURCHASE OF A 300FOOT JACKUP RIG THE VANGUARD II FOR 253 MILLION FROM HUTHNANCE INTERNATIONAL INC THE RIG WILL CONTINUE WORKING OFF THE COAST OF INDONESIA UNDER A TERM CONTRACT TO CONOCO INC A UNIT OF DUPONT CO DUAL DRILLING IS A DOMESTIC AND INTERNATIONAL OFFSHORE DRILLING CONTRACTOR THAT OPERATES A FLEET OF 21 OFFSHOREDRILLING RIGS 9308270078 930827 FINANCING BUSINESS SOUTHWEST SECURITIES GROUP INC SOUTHWEST SECURITIES GROUP INC DALLAS SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED OFFERING OF 118 MILLION COMMON SHARES THE FIRM DIDN'T DISCLOSE AN ESTIMATED PRICE THE STOCK CLOSED YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING AT 10 DOWN 75 CENTS THE COMPANY SAID IT WILL OFFER ONE MILLION SHARES WITH HOLDERS OFFERING THE REST SOUTHWEST SAID IT WILL USE THE PROCEEDS TO EXPAND ITS BUSINESSES AND FOR GENERAL CORPORATE PURPOSES THE OFFERING WILL BE UNDERWRITTEN BY A GROUP LED BY RAYMOND JAMES & ASSOCIATES INC SOUTHWEST ALSO SAID IT INCREASED ITS REGULAR QUARTERLY DIVIDEND TO THREE CENTS A SHARE FROM TWO CENTS PAYABLE OCT 1 TO STOCK OF RECORD SEPT 15 A SPOKESMAN SAID THE INCREASE REFLECTS A 60 GAIN IN NET INCOME FOR ITS FISCAL YEAR ENDED JUNE 25 9308270077 930827 FINANCING BUSINESS TJ INTERNATIONAL INC TJ INTERNATIONAL INC BOISE IDAHO SAID IT EXPECTS TO EMBARK ON A CAPITALEXPANSION PLAN IN A JOINT VENTURE AND ALSO DECLARED A 2FOR1 STOCK SPLIT AND AN INCREASED DIVIDEND THE SPLIT WILL BE ISSUED OCT 1 TO SHAREHOLDERS OF RECORD SEPT 7 TJ SAID IT WOULD INCREASE ITS DIVIDEND TO 55 CENTS A SHARE FROM 525 CENTS PER SPLIT SHARE THE BUILDINGPRODUCTS FIRM SAID PLANS FOR ITS JOINT VENTURE WITH MACMILLAN BLOEDEL LTD OF VANCOUVER CANADA INCLUDE BUILDING TWO PLANTS AND EXPANDING THREE 9308270076 930827 SPRINT CORP WILL CUT LONG DISTANCE DIVISION BY ABOUT 1000 JOBS KANSAS CITY MO IN A MOVE AIMED AT PRUNING COSTS AND IMPROVING OPERATING MARGINS SPRINT CORP SAID ITS LONG DISTANCE DIVISION WILL ELIMINATE ABOUT 1000 POSITIONS OR 5 OF ITS WORK FORCE BY THE END OF THE YEAR MOST OF THE JOBS ELIMINATED WILL BE UPPERLEVEL MANAGEMENT THE LONG DISTANCE CARRIER SAID SPRINT PLANS TO TAKE A CHARGE BUT HASN'T ESTIMATED THE AMOUNT THE COMPANY ALSO SAID IT ESTABLISHED A MULTIMEDIA SERVICES GROUP TO BUILD ON ITS EFFORTS IN AUDIOVIDEO CONFERENCING AND MESSAGE SERVICES THOMAS E WEIGMAN 45 YEARS OLD AND CURRENTLY CHIEF MARKETING OFFICER WAS NAMED ITS PRESIDENT SPRINT'S EFFORT TO REIN IN COSTS FOLLOWS AN EARLIER GOAL TO CUT ITS INTERNAL COSTS BY 150 MILLION ON AN ANNUALIZED BASIS BETWEEN THE 1992 THIRD QUARTER AND THE FOURTH QUARTER OF 1994 THE COMPANY HAD ALSO SAID IT PLANNED TO REDUCE ITS ACCESS COSTSPAYMENTS TO LOCAL PHONE COMPANIES TO CONNECT CALLSBY 100 MILLION IN THE SAME PERIOD ABOUT 40 OF SPRINT'S COSTS RELATE TO ACCESS CHARGES SAID RONALD T LEMAY PRESIDENT AND CHIEF OPERATING OFFICER OF THE LONG DISTANCE DIVISION ACCESS COSTS CAN BE REDUCED BY ROUTING ACCESS TRAFFIC MORE EFFICIENTLY A SPOKESMAN SAID MR LEMAY ACKNOWLEDGED THAT TWO MAJOR COMPETITORS AMERICAN TELEPHONE & TELEGRAPH CO AND MCI COMMUNICATIONS CORP HAD OPERATING MARGINS OF ABOUT 11 COMPARED WITH 8 FOR SPRINT AND ADDED TODAY'S ACTION WILL GIVE US FLEXIBILITY TO CLOSE THAT GAP HOWEVER FRANK GOVERNALI A FIRST BOSTON ANALYST SAID THE COST CUTS WEREN'T LIKELY TO BE ENOUGH TO GIVE SPRINT A MUCHNEEDED PUSH AGAINST ITS COMPETITORS SPRINT ALWAYS LAGS AT&T AND MCI IN BEING RESPONSIVE TO MARKET CHANGES THE COMPANY MUST CONTINUE TRYING TO DEVELOP BETTER PRODUCTS AND SERVICES HE ADDED AS PART OF ITS JOB CUTS SPRINT SAID IT PLANS TO CLOSE AN OPERATOR SERVICES CENTER IN INDIANAPOLIS AND A CUSTOMER SERVICE AND RECEIVABLES CENTER IN RESTON VA 9308270075 930827 HEARD ON THE STREET RESOUND SHARES AFTER SURGE WORRY ANALYSTS WHO CITE POTENTIALLY HEAVY FLOW OF NEW STOCK BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL RESOUND A SMALL MAKER OF HEARING AIDS HAS CAUGHT A DISEASE THAT OFTEN STRIKES YOUNG INITIAL PUBLIC OFFERINGS 180 DAYS AFTER THEY GO PUBLIC THE COMPANY'S PREIPO SHAREHOLDERS WILL SOON BE ALLOWED TO START SELLING AND IT'S A DANGEROUS TIME TO BUY RESOUND BASED IN REDWOOD CITY CALIF HAS CERTAINLY BEEN GIVEN A HIGHPITCHED WELCOME BY INVESTORS SINCE IT WENT PUBLIC AT 8 1/2 IN MARCH YESTERDAY RESOUND CLOSED AT 17 1/2 ON THE NASDAQ OVERTHECOUNTER MARKET OFF FROM A PEAK OF 23 1/2 WITH 147 MILLION SHARES OUTSTANDING RESOUND RETAINS A ROBUST STOCKMARKET VALUE OF 2573 MILLION MORE THAN EIGHT TIMES ANALYSTS' 1993 SALES ESTIMATES OF 301 MILLION THE STREET LOOKS FOR PROFIT OF 15 CENTS A SHARE AND STANDARD & POOR'S RANKED RESOUND AS ONE OF THREE TOP GAINERS IN THE NEWISSUE MARKET FOR THE FIRST SIX MONTHS OF 1993 NEXT WEEK AT THIS TIME SOME 10 MILLION NEW RESOUND SHARES THAT HAVE BEEN RESTRICTED FROM TRADING WILL BE FREE TO BE SOLD FOR THE FIRST TIME EVER AND SOME STOCK PICKERS SAY THAT COULD SPELL TROUBLE FOR RESOUND I WOULDN'T BUY AHEAD OF 10 MILLION SHARES SAYS MICHAEL GERDING A PORTFOLIO MANAGER AT FOUNDERS ASSET MANAGEMENT IN DENVER MR GERDING'S FUND BOUGHT RESOUND AT THE OFFERING BUT HAS SINCE SOLD ITS HOLDINGS BECAUSE OF CONCERNS OVER HEALTH CARE LEGISLATIVE CONCERNS INDEED A PROSPECTUS FOR THE COMPANY WARNED IN MARCH THAT FUTURE SALES OF SHARES BY EXISTING SHAREHOLDERS COULD ADVERSELY AFFECT THE PREVAILING MARKET PRICE OF THE COMMON STOCK THE HOLDERS OF THE 10 MILLION RESTRICTED SHARES ARE LARGELY VENTURE CAPITALISTS WHO BOUGHT RESOUND AT AN AVERAGE PRICE OF 286 A SHARE IN PRIVATE FINANCINGS BEFORE IT WENT PUBLIC PAUL W BROWN AN ANALYST AT VOLPE WELTY & CO WHO IS BULLISH ON RESOUND ESTIMATES THAT ONLY ABOUT TWO MILLION OF THE RESTRICTED SHARES WILL BE SOLD NEXT MONTH THIS MAY CHANGE THE SUPPLYDEMAND DYNAMICS OF TRADING IN RESOUND SHARES MR BROWN SAYS ADDING HE IS NONETHELESS KEEPING HIS BUY RECOMMENDATION BASED IN SAN FRANCISCO VOLPE WELTY UNDERWROTE RESOUND ALONG WITH MONTGOMERY SECURITIES AND FURMAN SELZ JAMES GALLOGLY RESOUND'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAYS MUCH OF THE UNSHACKLED STOCK WILL BE DISTRIBUTED TO LIMITED PARTNERS IN VENTURE FUNDS MR GALLOGLY SAYS HE DOESN'T KNOW HOW MANY OF THOSE INDIVIDUALS WILL QUICKLY MOVE TO TAKE THEIR PROFITS YOUR GUESS IS AS GOOD AS MINE HE SAYS BUT MR GALLOGLY SAYS HE ISN'T TOO WORRIED BECAUSE HE THINKS THERE ARE SOME FAIRLY LARGE INSTITUTIONS WAITING IN THE WINGS TO BUY RESOUND STOCK THEY'RE HOPEFUL THEY'LL GET A STEAL MR GALLOGLY SAYS THAT HE TOO HOLDS SOME SOONTOBEUNFETTERED SHARES IF I SELL SOME IT WON'T BE MANY HE ADDS AN ASSURANCE INTENDED TO INSPIRE CONFIDENCE ABOUT THREE YEARS AGO RESOUND BEGAN SELLING A DIGITALLY PROGRAMMABLE HEARING AID THAT IS CONSIDERED BY HEARINGAID SPECIALISTS TO BE AMONG THE BEST ON THE MARKET UNLIKE CONVENTIONAL HEARING AIDS WHICH SIMPLY AMPLIFY ALL SOUNDS PROGRAMMABLE DEVICES ARE MORE DISCRIMINATING POSSESSING A WIDE RANGE OF SETTINGS THAT CAN BE ADAPTED TO MANY ENVIRONMENTS RESOUND'S HEARING AIDS ARE ALSO THE MOST EXPENSIVE ON THE MARKET AT NEARLY 4000 FOR A PAIR THAT IS NEARLY THREE TIMES THE PRICE OF CONVENTIONAL DEVICES AND ALSO MORE THAN RIVAL PRODUCTS IN THE PROGRAMMABLE MARKET WHICH INCLUDES MINNESOTA MINING & MANUFACTURING AND SIEMENS LESS THAN A QUARTER OF THE 26 MILLION HEARINGIMPAIRED PEOPLE IN THE US WEAR HEARING AIDS WHICH GENERALLY AREN'T COVERED BY HEALTH INSURANCE RESOUND IS BETTING THAT MUCH OF ITS GROWTH IN THE 285 MILLIONAYEAR MARKET WILL COME FROM PEOPLE WHO HAVE RESISTED WEARING HEARING AIDS THEY DEEMED INEFFECTIVE THE STOCK TOOK A HIT EARLIER THIS MONTH WHEN THE FOOD AND DRUG ADMINISTRATION NOTIFIED RESOUND THAT THE COMPANY MUST SUBMIT A PREMARKET APPROVAL APPLICATION BEFORE IT CAN SELL ITS PATENTED EARLENS SYSTEM IN THE US STILL IN AN EARLYDEVELOPMENT STAGE EARLENS IS LIKE A CONTACT LENS THAT FLOATS ON THE EARDRUM GETTING SIGNALS FROM A SOUNDDETECTING NECKLACE MR GALLOGLY SAYS THE FDA NOTICE WAS FULLY CONSISTENT WITH OUR FORECASTS RESOUND STILL HOPES TO LAUNCH THE PRODUCT IN EUROPE NEXT YEAR YET LAWRENCE DEUTSCH A MANHATTAN AUDIOLOGIST WHO SAYS HE HAS SOLD A LOT OF RESOUND HEARING AIDS SAYS EARLENS IS PIE IN THE SKY A LONG WAY FROM EVER BEING WORN BY A PATIENT SOME MONEY MANAGERS SAY THAT THE DOUBLE WHAMMY OF THE FDA NOTICE AND THE LIFTING OF STOCK RESTRICTIONS MIGHT BE ENOUGH TO BRING THEM BACK TO RESOUND BILL KEITHLER WHO MANAGES INVESCO'S EMERGING GROWTH FUND SAYS HE SOLD THE FUND'S 82000 RESOUND SHARES BEFORE THE FDA ANNOUNCEMENT TO ME THE STOCK LOOKED AHEAD OF ITSELF OVER 20 MR KEITHLER SAYS I'D BE INTERESTED AT 14 OR 15 AND YOU MIGHT SEE THAT SIX MONTHS ENDED JULY 4 1993 SECOND QUARTER JULY 4 1993 9308270074 930827 INTERNATIONAL US TO RELAX LIMITS ON SALES OF COMPUTERS BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION MOVED TO RELAX COLD WAR RESTRICTIONS ON THE SALE OF HIGHSPEED COMPUTERS TO SUCH COUNTRIES AS RUSSIA AND CHINA BUT THE US HIGHTECHNOLOGY INDUSTRY SAID THE GOVERNMENT ISN'T DOING ENOUGH THE MOVE COMES AT A SENSITIVE TIME FOR EXPORTCONTROL ISSUES ON WEDNESDAY THE STATE DEPARTMENT CONCERNED ABOUT INTERNATIONAL WEAPONS PROLIFERATION ANNOUNCED A BAN ON THE SALE OF SOME HIGHTECH EQUIPMENT TO CHINA BECAUSE IT SOLD MISSILE TECHNOLOGY TO PAKISTAN YESTERDAY'S DECISION CONVERSELY REFLECTS FRUSTRATION AMONG HIGHTECH COMPANIES THAT HAVE BEEN PUSHING THE ADMINISTRATION TO FULFILL A CAMPAIGN PROMISE TO EASE RESTRICTIONS ON TECHNOLOGY EXPORTS THE CURBS WERE PUT IN PLACE BECAUSE OF WORRIES THAT THE EXPORTS WOULD BE USED FOR PRODUCING NUCLEAR WEAPONS US OFFICIALS SAID THERE WASN'T ANY CONNECTION BETWEEN THE TWO ACTIONS IN THE LATEST MOVE THE COMMERCE DEPARTMENT SAID THE US WILL SUBMIT A PROPOSAL TO THE COORDINATING COMMITTEE ON MULTILATERAL EXPORT CONTROLS TO LIFT RESTRICTIONS ON THE SALE OF COMPUTERS THAT CAN PERFORM AS MANY AS 67 MILLION OPERATIONS PER SECOND A MEASUREMENT KNOWN AS MTOPS RIGHT NOW THE RESTRICTIONS DON'T COVER COMPUTERS THAT OPERATE UNDER 125 MTOPS ABOUT THE STRENGTH OF PERSONAL COMPUTERS DICK IVERSON PRESIDENT OF THE AMERICAN ELECTRONICS ASSOCIATION BLASTED THE DECISION SAYING IT FALLS SHORT EARLIER THIS SUMMER THE TRADE GROUP RECOMMENDED THAT THE ADMINISTRATION RAISE THE LEVEL TO 210 MTOPS WHICH THEY SAID WOULD COVER MIDLEVEL WORK STATIONS THIS AREA HAS BEEN CLOSELY WATCHED BY OFFICIALS AT HIGHTECH COMPANIES SUCH AS SUN MICROSYSTEMS INC DIGITAL EQUIPMENT CORP MOTOROLA INC AND INTEL CORP BECAUSE THEY PRODUCE TECHNOLOGIES RESTRICTED BY THE RULE THE COMMERCE DEPARTMENT SAID THE CURRENT RESTRICTIONS COULD BE EASED IN A MATTER OF MONTHS AFTER IT SUBMITS ITS PROPOSAL TO COCOM A GROUP OF 17 COUNTRIES ORGANIZED IN 1949 TO RESTRICT THE SALE OF PRODUCTS THAT COULD BE USED FOR MILITARY PURPOSES BY THE SOVIET UNION AND ITS ALLIES THE RESTRICTIONS NOW APPLY TO SUCH PLACES AS THE FORMER SOVIET REPUBLICS AND COMMUNIST NATIONS THE GROUP INCLUDES THE US WESTERN EUROPEAN NATIONS JAPAN AND AUSTRALIA COMMERCE DEPARTMENT OFFICIALS SAID THE PROPOSAL FOLLOWED A FIVEMONTH INVESTIGATION INTO WHAT LEVELS OF COMPUTERS WERE AVAILABLE IN THE WORLD MARKET THE STUDY CONCLUDED THAT COMPUTERS UNDER 67 MTOPS WERE EASILY ACCESSIBLE AND COCOM RESTRICTIONS ON THEM ARE INEFFECTIVE 9308270073 930827 INTERNATIONAL US TO OBSERVE INSPECTION OF IRANBOUND FREIGHTER MANAMA BAHRAIN AP US EXPERTS HAVE FLOWN TO SAUDI ARABIA TO OBSERVE THE SEARCH OF A CHINESE FREIGHTER SUSPECTED OF CARRYING CHEMICAL WEAPONS MATERIALS FOR IRAN A CHINESE EMBASSY OFFICIAL SAID THE PROCEDURE IS EXPECTED TO RESOLVE A THREEWEEKOLD DIPLOMATIC STANDOFF BETWEEN THE US AND CHINA OVER THE CARGO OF THE 19000TON YIN HE UNTIL THURSDAY CHINA WOULDN'T AGREE TO A US PRESENCE DURING THE SEARCH OF THE CARGO SHIP THE YIN HE DOCKED THURSDAY AT THE PERSIAN GULF PORT OF DAMMAM WHERE SAUDI INSPECTORS WILL SEARCH IT US OFFICIALS SUSPECT THE SHIP WAS CARRYING TO IRAN 24 CONTAINERS OF CHEMICALS THAT COULD USED IN MAKING MUSTARD GAS AND NERVE TOXINS BEIJING DENIES THE SHIP IS CARRYING BANNED GOODS THE SHIP HAD BEEN SCHEDULED TO DOCK IN DUBAI IN EARLY AUGUST BUT OFFICIALS IN THE UNITED ARAB EMIRATES REFUSED IT ENTRY FOLLOWING THE US ALLEGATIONS UNTIL TUESDAY WHEN IT SAILED FOR DAMMAM THE YIN HE AND ITS CREW OF 28 HAD BEEN STRANDED IN THE GULF OF OMAN 9308270072 930827 WHO'S NEWS SOUTHWEST SECURITIES GROUP INC SOUTHWEST SECURITIES GROUP INC DALLAS SUSAN M BYRNE FOUNDER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF WESTWOOD MANAGEMENT CORP WAS NAMED A DIRECTOR OF THIS SECURITIES HOLDING COMPANY MS BYRNE 47 YEARS OLD FILLS A VACANCY ON THE NINEMEMBER BOARD 9308270071 930827 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY CLINTON HOPES FOR AN ECONOMIC PICKMEUP BUT OTHERS AREN'T SO SURE WHILE THE ADMINISTRATION WHICH UPDATES ITS ECONOMIC OUTLOOK NEXT WEEK STICKS TO ITS FORECAST THAT THE ECONOMY WILL GROW AT A 3 PACE IN THE SECOND HALF OF THE YEAR INSIDERS ARE UNEASY THEY ACKNOWLEDGE PRIVATELY THAT THE ECONOMY SEEMS TO HAVE LITTLE MOMENTUM BLUE CHIP ECONOMIC INDICATORS DUBS THE CURRENT RECOVERY NOW 28 MONTHS OLD THE SLOWEST IN POSTWORLD WAR II HISTORY SKEPTICS SAY EXPORT DEMAND LIKELY WILL REMAIN WEAK AS FOREIGN ECONOMIES CONTINUE TO SUFFER BANKERS TRUST ECONOMIST JOHN WILLIAMS FRETS THAT THE MOST ATTRACTIVE FINANCING COSTS IN A GENERATION HAVE FAILED TO SPARK A BOOM OR EVEN A BOOMLET IN HOUSING THE PACE OF CORPORATE LAYOFFS CONTINUES TO WORRY FORECASTERS THE WHITE HOUSE WILL ESTIMATE MORE THAN 500 BILLION IN SAVINGS FROM THE NEW DEFICITREDUCTION LAW BUT A CONGRESSIONAL ESTIMATE IS LIKELY TO BE SUBSTANTIALLY LESS PEROT SEEKS TO BURNISH HIS NONPARTISAN CREDENTIALS THE NAFTA ISSUE GIVES THE TEXAS BILLIONAIRE A CHANCE TO SWING FROM BEING CLUBBY WITH REPUBLICANS AS HE DID IN THE BUDGET DEBATE TO WORKING WITH DEMOCRATS ON THE ISSUES OF ECONOMIC NATIONALISM THERE'S NO QUESTION HE'S CLOSER TO THE DEMOCRATS BY FAR SAYS POLLSTER AND SOMETIME PEROT ADVISER GORDON BLACK PEROT SCHEDULES TWO SYNDICATED RADIO AND TWO NATIONAL TV APPEARANCES NEXT MONTH TO PUSH HIS ANTINAFTA THEME THE WHITE HOUSE MEANWHILE SEEKS TO BLUNT HIS EFFORTS COMMERCE CHIEF BROWN PLANS A TOUR OF TEXAS BORDER TOWNS TO TALK UP THE ACCORD NEXT WEEK WHILE THE COUNCIL OF ECONOMIC ADVISERS PREPARES A POINTBYPOINT CRITIQUE OF PEROT'S ASSERTIONS CLINTON'S PLAN FOR HEALTHSPENDING CAPS COMPLICATES HIS POLITICAL EQUATION WITH REPUBLICANS ALREADY RILED OVER REQUIRING EMPLOYERS TO BUY COVERAGE FOR THEIR WORKERS THOSE ON THE LEFT ARE SURE TO FIGHT CAPS ON MEDICARE AND MEDICAID THE ADMINISTRATION MAY END UP CREATING MORE AND MORE FACTIONS ON THE HILL WHO BECOME OPPONENTS OF THE PLAN SAYS DREW ALTMAN PRESIDENT OF THE KAISER FAMILY FOUNDATION STANFORD HEALTH EXPERT ALAIN ENTHOVEN WARNS THAT A SYSTEM THAT RELIES TOO HEAVILY ON CAPS WOULD BE SUCH A MISFORTUNE BECAUSE IT WOULD CREATE ALL KINDS OF UNINTENDED DISTORTIONS IN THE MARKET TOM HODAPP SENIOR HEALTHCARE ANALYST AT ROBERTSON STEPHENS & CO SAYS THE TALK OF TOUGH SPENDING RESTRAINTS HAS SPOOKED INVESTORS IN HMO STOCKS THE PERCEPTION OF PRICE CONTROLS IS A BIG NONO FOR THE MARKET HE SAYS BOTH SIDES NOW A COMMON CAUSE COMPILATION SHOWS THAT ERNST & YOUNG ARCHER DANIELS MIDLAND CHEVRON AND ATLANTIC RICHFIELD GAVE MORE THAN 30000 TO EACH OF THE TWO PARTIES IN THE FIRST SIX MONTHS OF 1993 ALSO SWINGING BOTH WAYS THE AKIN GUMP LAW FIRM HOME OF DEMOCRATIC HEAVYHITTERS VERNON JORDAN AND ROBERT STRAUSS WHICH GAVE 30000 TO THE DEMOCRATS BUT ALSO 20000 TO THE REPUBLICANS JUSTICE THOMAS PLANS A HIGHLY UNUSUAL APPEARANCE OCT 1 AT THE NATIONAL CONVENTION OF CONCERNED WOMEN FOR AMERICA A CONSERVATIVE GROUP JUSTICES USUALLY AVOID ASSOCIATING WITH SUCH OVERTLY IDEOLOGICAL ORGANIZATIONS BUT THOMAS FEELS INDEBTED TO THE GROUP WHICH BACKED HIS NOMINATION A SUPREME COURT SPOKESWOMAN SAYS HE DOESN'T PLAN ANY REMARKS BYEBYE BENTSEN NO WAY THE TREASURY SECRETARY SAYS OF THE RUMORS HE IS PLANNING TO STEP DOWN THE PENDING DEPARTURES OF SOME AIDES ARE UNRELATED TO HIS OWN PLANS HE INSISTS I'M LOOKING FORWARD TO FOUR YEARS ON THE JOB HE SAYS ADDING THAT THE PRESIDENT AND I HAD A GOOD LAUGH OVER THE SPECULATION PENTAGON INSIDERS PREDICT THE TROUBLED C17 CARGO PLANE WILL GET A TENTATIVE APPROVAL AT A MEETING SET FOR TODAY BUT TO KEEP PRESSURE ON MCDONNELL DOUGLAS THE PLANE'S BUILDER ASPIN AIDES MAY ORDER THE AIR FORCE TO CONSIDER CUTTING BACK ON PLANNED PURCHASES AND INSTEAD BUYING USED CARGO JETS PROBABLY BOEING 747S THE US WONDERS IF JAPAN'S NEW GOVERNMENT CAN DELIVER ON ITS PROMISES THE ADMINISTRATION APPLAUDS THE FRAGILE COALITION'S PLEDGES TO OPEN ITS MARKETS AND STIMULATE ITS ECONOMY BUT WONDERS IF NEW PRIME MINISTER HOSOKAWA WILL BE ABLE TO PULL TOGETHER THE GOVERNMENT'S DISPARATE ELEMENTS AS DEADLINES APPROACH ON TRADE NEGOTIATIONS THERE IS ALSO CONCERN OVER JAPAN'S FOREIGN POLICY THE SOCIALIST PARTY THE STRONGEST BLOC IN THE COALITION OPPOSES JAPAN'S RECENT DECISION TO SEND TROOPS TO JOIN IN THE UN PEACEKEEPING FORCE TO CAMBODIA SOME COALITION MEMBERS ALSO DON'T LIKE THE IDEA OF JAPAN SEEKING A PERMANENT SEAT ON THE UN SECURITY COUNCIL BUT US PRODDING OF TOKYO INTO MORE INTERNATIONAL ACTIVISM WOULD RAISE CONCERNS AMONG OTHER ASIAN ALLIES MINOR MEMOS TYPECASTING THE CENTER FOR WILDLIFE INFORMATION RECRUITS NORMAN SCHWARZKOPF AS A SPOKESMAN FOR GRIZZLY BEAR RECOVERY THE NO 1 REASON CLINTON CHOSE MARTHA'S VINEYARD FOR HIS VACATION ACCORDING TO A POPULAR TSHIRT ON THE ISLAND HE THINKS HE'S A KENNEDY TAKING IT EASY THE SUPREME COURT SO FAR SCHEDULES ONLY 43 1/2 HOURS OF ORAL ARGUMENTS FOR NEXT FALL IN EACH OF THE LAST TWO TERMS THE JUSTICES BY NOW HAD SCHEDULED MORE THAN 60 HOURS 9308270070 930827 WHO'S NEWS BT FINANCIAL CORP BT FINANCIAL CORP JOHNSTOWN PA JOHN H ANDERSON 43 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF THIS BANK HOLDING COMPANY WAS NAMED TO SUCCEED RETIRING CHAIRMAN AND CHIEF EXECUTIVE OFFICER GERALD W SWATSWORTH MR SWATSWORTH 67 WILL RETIRE EFFECTIVE SEPT 30 BUT WILL CONTINUE AS A DIRECTOR AND CHAIRMAN OF THE CONCERN'S EXECUTIVE COMMITTEE MR ANDERSON RETAINS THE POSITION OF PRESIDENT THE CHIEF OPERATING POST WILL NOT BE FILLED A COMPANY SPOKESWOMAN SAID IN ADDITION GEORGE J KONDOR JR 40 CURRENTLY EXECUTIVE VICE PRESIDENT WAS ADDITIONALLY NAMED SECRETARY OF THE COMPANY SUCCEEDING ETHEL J OTROSINA 67 WHO ALSO HOLDS THE TITLE OF EXECUTIVE VICE PRESIDENT MISS OTROSINA WHO ALSO RETIRES SEPT 30 WILL REMAIN WITH BT FINANCIAL AS A DIRECTOR AND MEMBER OF THE EXECUTIVE COMMITTEE 9308270069 930827 TECHNOLOGY BRIEF INTERNATIONAL BUSINESS MACHINES SURVEY SUGGESTS SLIGHT GAIN IN INTERNATIONAL PC MARKET INTERNATIONAL BUSINESS MACHINES CORP SAID NEW MARKET RESEARCH SUGGESTS IT WILL MODESTLY WIDEN ITS LEAD POSITION IN THE INTERNATIONAL PERSONAL COMPUTER MARKET CITING FIGURES BASED ON THE SURVEY OF PC MAKERS BY HIGHTECH RESEARCHER INTERNATIONAL DATA CORP THE ARMONK NY COMPANY SAID IT ENDED 1992 WITH 106 OF THE WORLD PC MARKET AND EXPECTS TO GAIN TWO POINTS OF MARKET SHARE BY YEAR'S END IBM SAID THE WORLD PC MARKET AMOUNTS TO 346 MILLION UNITS VALUED AT 68 BILLION IBM SAID THE PC MARKET IS GROWING AT 146 A YEAR BUT SAID ITS OWN PC BUSINESS IS GROWING AT ROUGHLY 25 TIMES THAT RATE 9308270068 930827 ACORDIA AGREES TO BUY AMERICAN BUSINESS INSURANCE OPERATIONS INDIANAPOLIS ACORDIA INC SAID IT DEFINITIVELY AGREED TO ACQUIRE THE OPERATIONS OF INSURANCE BROKER AMERICAN BUSINESS INSURANCE INC FOR ABOUT 80 MILLION AND THE ASSUMPTION OF DEBT THE INSURANCE BROKERAGE COMPANY SAID IT EXPECTS THE TRANSACTION TO CLOSE IN OCTOBER AMERICAN BUSINESS WHICH BROKERS PROPERTY AND CASUALTY AND LIFE INSURANCE IS A UNIT OF GREAT AMERICAN INSURANCE CO WHICH IN TURN IS OWNED BY CLOSELY HELD AMERICAN FINANCIAL CORP OF CINCINNATI AMERICAN FINANCIAL'S CHAIRMAN IS INVESTOR CARL LINDNER AN ACORDIA SPOKESMAN SAID THE TRANSACTION WILL INVOLVE PAYMENT OF 50 MILLION IN CASH ALONG WITH 800000 COMMON SHARES CERTAIN WARRANTS AND THE ASSUMPTION OF ABOUT 50 MILLION OF AMERICAN BUSINESS DEBT LIKE ACORDIA ABI FOCUSES ON DISTRIBUTING INSURANCE PRODUCTS TO MIDSIZE CONCERNS THE PARTS ACORDIA IS ACQUIRING HAD REVENUE ON AN ANNUALIZED BASIS OF ABOUT 116 MILLION ACORDIA SAID ACORDIA WENT PUBLIC IN OCTOBER AT 1450 A SHARE IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY ITS SHARES CLOSED AT 24875 UNCHANGED 9308270067 930827 BUSINESS BRIEF LEU HOLDING AG BANKING GROUP SAYS PROFIT JUMPED IN FIRST SIX MONTHS SWITZERLAND'S LEU HOLDING AG OF ZURICH A PRIVATE BANKING GROUP CONTROLLED BY CS HOLDING AG SAID ITS PROFIT IN THE FIRST HALF ROSE TO 92 MILLION SWISS FRANCS 62 MILLION FROM 41 MILLION FRANCS ALTHOUGH SECONDHALF GROWTH RATES ARE EXPECTED TO SLOW FOR THE FULL YEAR THE COMPANY EXPECTS A STEEP GAIN IN PROFIT IN 1992 IT HAD NET GROUP PROFIT OF 104 MILLION FRANCS THE COMPANY SAID RETURN ON EQUITY INCREASED TO 10 FROM 5 ALL DIVISIONS CONTRIBUTED TO THE IMPROVEMENT LEU HOLDING SAID LEU ALSO REPORTED THAT FIRSTHALF ASSETS SLIPPED 2 TO 168 BILLION SWISS FRANCS 113 BILLION FROM 1717 BILLION FRANCS AT THE END OF 1992 9308270066 930827 BUSINESS BRIEF GENEVA STEEL CO UNION TEMPORARILY SUSPENDS TALKS WITH UTAH STEELMAKER GENEVA STEEL CO SAID THE UNITED STEELWORKERS OF AMERICA LOCAL 2701 TEMPORARILY SUSPENDED LABOR NEGOTIATIONS THE TWO SIDES ARE ENGAGED IN A DISPUTE OVER MANAGEMENT'S PROPOSAL TO LINK WAGE INCREASES TO AN OUTPUT PROJECTION THAT THE UNION SAYS IS UNREALISTIC THE UNION WHICH REPRESENTS 2100 GENEVA WORKERS SAYS IT IS SEEKING WAGE PARITY WITH WORKERS AT MAJOR STEEL COMPANIES BUT GENEVA SAYS IT CAN'T PAY WAGES AT THAT LEVEL THE COMPANY CALLS ITS PROJECTIONS REALISTIC AND SAYS IT IS PUTTING IN EQUIPMENT TO BOOST PRODUCTION THE CONTRACT EXPIRES TUESDAY GENEVA STOCK CLOSED DOWN 1 OR 78 AT 11825 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE VINEYARD UTAH STEELMAKER SAID THAT IN THE EVENT OF A STRIKE IT WILL CONTINUE OPERATING THE PLANT AT SIGNIFICANTLY REDUCED PRODUCTION LEVELS USING EXEMPT AND NONUNION EMPLOYEES AS WELL AS UNION MEMBERS WHO CHOOSE TO WORK GENEVA ADDED THAT IT IS OPTIMISTIC IT CAN MAINTAIN POSITIVE CASH FLOW DURING A STRIKE 9308270065 930827 TELECOMMUNICATIONS AT&T PREPARES PLAN TO EXTEND MCCAW'S REACH BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL MCCAW CELLULAR COMMUNICATIONS CO MIGHT HELP AMERICAN TELEPHONE & TELEGRAPH CO'S ANYWHERE ANYTIME COMMUNICATIONS STRATEGY BUT MCCAW'S NETWORK ISN'T EVERYWHERE SOMETHING AT&T WILL MOVE AGGRESSIVELY TO RECTIFY COMPANY INSIDERS SAY THEY SAY IF A MERGER OF THE TWO COMPANIES IS APPROVED BY REGULATORS AT&TMCCAW WILL MOVE QUICKLY TO STAKE OUT ITS WIRELESS TURF BOTH IN THE US AND OVERSEAS IN AREAS WHERE MCCAW DOESN'T CURRENTLY OPERATE THE TEAM WILL MOVE IN AND START SELLING OTHER CARRIERS' SERVICES WHILE ACQUIRING LICENSES FOR AVAILABLE RADIO FREQUENCIES IT ALSO WILL SEEK OUT SUITABLE ACQUISITIONS AND TO OVERCOME TECHNICAL HURDLES AT&TMCCAW PLANS TO TAKE ADVANTAGE OF MCCAW'S UNDISCLOSED INVESTMENT IN STEINBRECHER CORP A MASSACHUSETTS COMPANY WHOSE EQUIPMENT LETS ONE MOBILE PHONE WORK ON ANY RADIO FREQUENCY THIS MAKES A PHONE USABLE ON CELLULAR NETWORKS OR THE EMERGING PERSONAL COMMUNICATIONS SERVICES PCS NETWORKS PCS WILL USE HIGHER FREQUENCIES THAN CELLULAR DOES FOR AT&TMCCAW UBIQUITOUS CELLULAR COVERAGE IS CRUCIAL IT'S MORE EFFICIENT FROM A MARKETING STANDPOINT AND A NATIONAL NETWORK WOULD BE EASIER TO MAINTAIN MOST IMPORTANTLY HOWEVER THEY NEED TO PULL THINGS TOGETHER IN ALL MARKETS AND DO IT QUICKLY SO THAT THEIR CUSTOMERS CAN ROAM ANYWHERE WITH THEIR PHONES SAYS BARRY GOODSTADT A SENIOR CONSULTANT AT ARTHUR D LITTLE INC CAMBRIDGE MASS MCCAW DESPITE ITS PRESENCE IN MANY KEY US MARKETS ACROSS THE COUNTRY ISN'T TRULY NATIONWIDE THE KIRKLAND WASH COMPANY IS ONLY OFFERING SERVICES TO 35 OF THE US IN CONTRAST THE SEVEN REGIONAL BELL COMPANIES AND GTE CORP WHICH ARE BANDING TOGETHER TO COMPETE WITH MCCAW'S CELLULAR OPERATIONS COVER ALMOST 90 OF THE COUNTRY AMONG THE MAJOR CITIES MCCAW DOESN'T SERVE BOSTON WASHINGTON CHICAGO ATLANTA AND PHILADELPHIA IN RECENT INTERVIEWS ALEX MANDL AT&T'S COMMUNICATIONS CHIEF AND AT&T CHAIRMAN ROBERT E ALLEN DECLINED TO SPECIFY EXACTLY HOW AT&TMCCAW WILL REACH INTO EVERY HOME AND HAMLET IN AMERICA MR MANDL DID SAY THE TEAM EXPECTS TO DRAW ADDITIONAL CUSTOMERS BY ACTING AS A DEALER AND RESELLING THE TRANSMISSION SERVICES OF CELLULAR OPERATORS IN MARKETS WHERE MCCAW DOESN'T CURRENTLY HAVE NETWORKS THE RECOGNIZABILITY OF AT&T'S BRAND AND ITS MARKETING MUSCLE WOULD BOOST THAT EFFORT BUT OFFERING SUCH A RESALE SERVICE WOULD BE LESS PROFITABLE THAN ACTUALLY OWNING A NETWORK IN THOSE AREAS SINCE THE TEAM WOULD HAVE TO SPEND HEAVILY TO MARKET THE SERVICE AND PAY THE CARRIER A CUT OF REVENUES TO AUGMENT THIS RESALE PLAY PEOPLE CLOSE TO BOTH COMPANIES SAY MCCAW CHAIRMAN CRAIG MCCAW AND OTHER EXECUTIVES INCLUDING PRESIDENT JAMES BARKSDALE AND VICE CHAIRMAN WAYNE PERRY HAVE CONCLUDED THAT MCCAW MUST PURSUE NEW ACQUISITIONS OF RADIO LICENSES AND PERHAPS OF EVEN STRONG REGIONAL PLAYERS SUCH AS VANGUARD CELLULAR SYSTEMS INC VANGUARD HAS EASTERN SEABOARD PROPERTIES THAT MCCAW LACKS MCCAW DECLINED TO COMMENT ON THIS MR MCCAW WAS ON A KAYAKING AND FISHING EXPEDITION IN THE PACIFIC NORTHWEST MR MANDL WILL SAY ONLY I WOULDN'T RULE ACQUISITIONS OUT HE ADDS IT'S NOT ON THE TOP OF OUR LIST FURTHER ACQUISITIONS WOULD HARDLY SURPRISE AT&T WATCHERS SINCE THE COMPANY HAS AGREED TO SPEND MORE THAN 20 BILLION ON NEW ACQUISITIONS IN THE PAST COUPLE OF YEARS THE TEAM'S MOST PROVOCATIVE AND TECHNOLOGICALLY CHALLENGING MOVE MAY BE THE PURSUIT OF NEW RADIO LICENSES MCCAW'S INTEREST CENTERS ON A NEW PERSONAL COMMUNICATION SERVICE OR PCS AS ENVISIONED BY THE FEDERAL COMMUNICATIONS COMMISSION AND INDUSTRY PROPONENTS PCS WOULD RIVAL TODAY'S CELLULAR SERVICES BY GIVING PEOPLE A LOWCOST WIRELESS DIGITAL PHONE LINK AND INEXPENSIVE POCKETPHONES PCS IS ALSO EXPECTED TO OPERATE AT A MUCH HIGHER RADIO FREQUENCY 1518 GIGAHERTZ THAN CELLULAR 800900 MEGAHERTZ NUMEROUS COMPANIES INCLUDING MCI COMMUNICATIONS CORP AND THE BABY BELLS ARE ANGLING FOR PCS LICENSES AND ANXIOUSLY AWAITING AN FCC RULING EXPECTED IN MIDSEPTEMBER THAT WILL OUTLINE HOW THEY CAN OBTAIN THEM MCI HAS PUT TOGETHER A CONSORTIUM THAT WANTS A NATIONAL PCS LICENSE BELL ATLANTIC CORP AND BELLSOUTH CORP SUPPOSEDLY ARE TEAMING UP FOR A SIMILAR PERMIT ANALYSTS SAY MCCAW WHICH ALREADY IS PROVIDING A SERVICE THAT LETS PEOPLE USE CELLULAR POCKETPHONES MAY BE ABLE TO PREEMPT PCS FROM GETTING A MARKETING FOOTHOLD PCS WILL BE INORDINATELY UNSUCCESSFUL BECAUSE CELLULAR SERVICES ALREADY EXIST AND CELLULAR CARRIERS WILL JUST DROP THEIR RATES BEFORE PCS CARRIERS CAN EARN ENOUGH MONEY TO PAY OFF THEIR NETWORK AND MARKETING INVESTMENTS SAYS HERSCHEL SHOSTECK A WIRELESS INDUSTRY CONSULTANT IN SILVER SPRINGS MD STILL THE DIFFERENT FREQUENCIES OF CELLULAR AND PCS WOULD SEEM AN INSURMOUNTABLE OBSTACLE FOR AT&TMCCAW FREQUENCY BRIDGING IS A FUNDAMENTAL ISSUE MR SHOSTECK SAYS IF YOU'RE A CUSTOMER YOU'RE NOT GOING TO WANT TO WALK AROUND WITH TWO PHONES TO OVERCOME THIS MCCAW HOLDS A SIZABLE INVESTMENT IN STEINBRECHER A SMALL RADIOEQUIPMENT COMPANY WITH A SPECIAL ELECTRONIC SYSTEM AND SOFTWARE THAT ERASES SUCH SPECTRUM BOUNDARIES ACCORDING TO PEOPLE CLOSE TO MCCAW AND STEINBRECHER THE BURLINGTON MASS MANUFACTURER SUPPLIES SOPHISTICATED RADIO GEAR TO THE PENTAGON AMONG ITS MANY USES THE EQUIPMENT LETS A SUBMARINE CREW USING ONE FREQUENCY TALK TO A B52 PILOT USING ANOTHER FREQUENCY STEINBRECHER WHICH HAS BEEN LOOKING TO TURN ITS HIGHTECH DEFENSE COMMUNICATIONS KNOWHOW LOOSE IN THE COMMERCIAL MARKET IS WORKING ON BUILDING EQUIPMENT TO LET AT&TMCCAW CUSTOMERS ROAM ANYWHERE REGARDLESS OF THE FREQUENCY OR CELLULAR TRANSMISSION SCHEME THEY ENCOUNTER ACCORDING TO MCCAW INSIDERS A MCCAW SPOKESMAN DECLINED TO COMMENT ON WHETHER THE COMPANY HAS AN INVESTMENT IN STEINBRECHER RUSS CYR STEINBRECHER'S DIRECTOR OF PRODUCT MARKETING WOULD ONLY CONFIRM THAT THE COMPANY IS WORKING VERY CLOSELY WITH MCCAW I CAN'T CONFIRM OR DENY THAT THEY HAVE AN INVESTMENT IN US HE SAYS STEINBRECHER SAYS IT IS WORKING CLOSELY WITH MCCAW TO TURN ITS AGING ANALOG CELLULAR PHONE NETWORK INTO ONE THAT CAN HANDLE DIGITAL DATA TRANSMISSION CELLULAR PHONE NETWORKS CONSIST OF RADIO TRANSCEIVERS THAT TRANSMIT CALLS TO MOBILE PHONES VIA RADIO WAVES THESE TRANSCEIVERS OR BASE STATIONS ARE ARRANGED IN CELLS AND PASS ON THE CALL AS A PHONE USER MOVES FROM ONE AREA TO ANOTHER ELECTRONIC SWITCHES SERVE AS EXCHANGES FOR THIS TRAFFIC AND ALSO PASS ON CALLS TO THE REGULAR WIRED PHONE NETWORK STEINBRECHER IS BUILDING NEW ADDON RADIO STATIONS THAT WILL COMPRISE MCCAW'S NATIONAL CELLULAR DIGITAL PACKET DATA OR CDPD NETWORK MCCAW WILL USE THE NETWORK TO LET LAPTOP COMPUTER USERS SEND AND RECEIVE DATA ON ITS NETWORK LONGER TERM INSIDERS SAY STEINBRECHER IS POSITIONED TO BECOME A KEY SUPPLIER OF ANCILLARY RADIO GEAR FOR EXPANDING AT&TMCCAW'S REGULAR PHONE SERVICE WITH MCCAW'S NETWORK COVERAGE AND ITS GOALS TO EXPAND IN EUROPE THE LITTLE CLOSELY HELD EQUIPMENT MANUFACTURER LIKELY WOULD EXPERIENCE A HUGE UPTICK IN ORDERS AND ONCE MCCAW IS AT&T'S ITS STEINBRECHER INVESTMENT WOULD BECOME YET ONE MORE BULLET IN AT&T'S GROWING MULTIMEDIA ARSENAL 9308270064 930827 BUSINESS BRIEF MITCHELL ENERGY & DEVELOPMENT NET ROSE 16 IN 2ND QUARTER IN LINE WITH EXPECTATIONS MITCHELL ENERGY & DEVELOPMENT CORP BASED IN THE WOODLANDS TEXAS SAID SECONDQUARTER EARNINGS ROSE 16 IN LINE WITH ANALYSTS' EXPECTATIONS MITCHELL WITH INTERESTS IN OIL NATURAL GAS AND REAL ESTATE HAD NET INCOME OF 108 MILLION OR 21 CENTS A SHARE COMPARED WITH 93 MILLION OR 20 CENTS A SHARE A YEAR EARLIER THE YEAREARLIER EARNINGS WERE RESTATED TO REFLECT A CHANGE IN ACCOUNTING METHODS REVENUE ROSE 13 TO 2437 MILLION FROM 2149 MILLION THE COMPANY SAID IT PLANS TO TAKE A THIRDQUARTER PROVISION OF 115 MILLION FOR THE RECENT 1 FEDERAL CORPORATE TAX RATE INCREASE IN THE YEAREARLIER THIRD QUARTER MITCHELL HAD NET OF 161 MILLION OR 34 CENTS A SHARE ON REVENUE OF 2507 MILLION 9308270063 930827 CHICAGO MERC TO BEGIN FUTURES CONTRACT BASED ON MMI STOCKS SEPT 7 CHICAGO THE CHICAGO MERCANTILE EXCHANGE SAID IT WILL LAUNCH A FUTURES CONTRACT ON THE MAJOR MARKET INDEX OF STOCKS SEPT 7 THE FUTURES CONTRACT BASED ON THE INDEX WHICH TRACKS THE PRICES OF 20 BLUECHIP STOCKS WAS FORMERLY TRADED AT THE CHICAGO BOARD OF TRADE THE MERC WON CONTROL OF THE CONTRACT AFTER THE AMERICAN STOCK EXCHANGE DECLINED TO RENEW AN AGREEMENT ON THE INDEX WITH THE CBOT THE MMI FUTURES CONTRACT IS AN UNDERVALUED ASSET WITH TREMENDOUS POTENTIAL SAID JOHN F SANDNER MERC CHAIRMAN ADDING THAT THE MERC EVENTUALLY PLANS TO LIST IT ON THE GLOBEX AFTERHOURS COMPUTERIZED FUTURESTRADING SYSTEM AS WELL TO COMPLEMENT THE MERC'S MMI FUTURES CONTRACT THE CHICAGO STOCK EXCHANGE FORMERLY CALLED THE MIDWEST STOCK EXCHANGE PLANS TO LIST A RELATED INSTRUMENT TO MAKE IT EASIER FOR INSTITUTIONAL INVESTORS TO TRADE THE 20 STOCKS UNDERLYING THE MMI INDEX AS A BASKET OR SINGLE UNIT THE MERC ALSO TRADES POPULAR STOCKINDEX FUTURES CONTRACTS BASED ON THE STANDARD & POOR'S 500 AND MIDCAP 400 STOCK INDEXES 9308270062 930827 MARKETING & MEDIA THORN EMI UNIT ABANDONS ACTION OVER USED CD SALES BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A MAJOR RECORD DISTRIBUTOR FACING LAWSUITS AND ANGRY RETAILERS SAID IT WON'T PENALIZE RETAILERS WHO HAVE GONE INTO THE FLEDGLING BUSINESS OF SELLING USED COMPACT DISKS CEMA DISTRIBUTION THE US DISTRIBUTION ARM OF EMI MUSIC HAD JOINED WITH OTHER MAJOR DISTRIBUTORS IN A DRIVE AGAINST USED CD SALES WITHHOLDING COOPERATIVE ADVERTISING DOLLARS FROM RETAILERS DEALING IN USED PRODUCT BUT YESTERDAY HOPING TO AVOID A COURT BATTLE CEMA SAID IT WOULD RESUME COOP ADVERTISING WITH RETAILERS THAT SELL USED CDS EMI MUSIC IS A UNIT OF LONDON'S THORN EMI PLC UNTIL YESTERDAY THE FIGHT BETWEEN RETAILERS AND THE DISTRIBUTION ARMS OF MAJOR MUSIC COMPANIES OVER USED CDS APPEARED TO BE ESCALATING RETAILERS HAD BEGUN SELLING USED CDS IN THE FACE OF HIGH CD PRICES WHILE RECORD LABELS FEARED USED CDS WOULD REDUCE THE MONEY CONSUMERS SPENT ON NEW MUSIC CDS AS A RESULT RETAILER WHEREHOUSE ENTERTAINMENT INC AND THE INDEPENDENT MUSIC RETAILERS ASSOCIATION HAD FILED SEPARATE BUT SIMILAR SUITS AGAINST CEMA AND THREE OF THE SIX BIG DISTRIBUTORS SONY CORP TIME WARNER INC AND MATSUSHITA ELECTRICAL INDUSTRIAL CO TO CHALLENGE THE WITHHOLDING OF COOP FUNDS YESTERDAY A WHEREHOUSE SPOKESMAN SAID THE TORRANCE CALIF RETAILER WOULD DROP CEMA FROM ITS SUIT BUT WOULD CONTINUE LEGAL ACTION AGAINST THE REMAINING THREE DISTRIBUTORS THE RETAILERS GROUP COULDN'T BE REACHED FOR COMMENT MATSUSHITA'S UNI DISTRIBUTION HAD NO COMMENT AND TIME WARNER AND SONY'S DISTRIBUTION COMPANIES DIDN'T RETURN CALLS FOR COMMENT IN A STATEMENT CEMA PRESIDENT RUSS BACH SAID THE COMPANY WAS STILL CONCERNED ABOUT THE UNCHECKED GROWTH OF THE USED CD MARKET BECAUSE IT REPRESENTS CANNIBALIZATION OF NEW SALES AND A LOSS OF ROYALTY DOLLARS TO ARTISTS AND SONGWRITERS BUT HE SAID CEMA WOULD PREFER TO RESOLVE OUR DIFFERENCES WITH USED CD SELLERS THROUGH MARKETBASED SOLUTIONS RATHER THAN THROUGH THE COURTS USED CDS ARE STARTING TO ACCUMULATE FROM PROMOTIONAL DISKS DISTRIBUTED TO MEDIA OUTLETS AND REVIEWERS AS WELL AS FROM CONSUMERS WHO HAVE TIRED OF THEIR COLLECTION TO DISCOURAGE SOME USED CD SALES CEMA SAID IT WILL ASK RETAILERS TO NOT SELL CDS MARKED FOR PROMOTIONAL USE 9308270061 930827 BUSINESS BRIEF CINCINNATI GAS & ELECTRIC CO UTILITY RAISES RATES AS PART OF SETTLEMENT WITH OHIO THE CINCINNATI GAS & ELECTRIC CO SAID IT WILL RAISE ITS ANNUAL GAS AND ELECTRIC RATES A TOTAL OF 60 MILLION EFFECTIVE IMMEDIATELY AS PART OF A SETTLEMENT WITH THE PUBLIC UTILITIES COMMISSION OF OHIO RESIDENTIAL ELECTRIC RATES WILL INCREASE AN AVERAGE OF 52 WHILE RESIDENTIAL GAS RATES WILL RISE 45 A MINIMUM OF 48 MILLION MUST BE SPENT ANNUALLY BY CG&E ON RESIDENTIAL DEMANDSIDE MANAGEMENT PROGRAMS DESIGNED TO HOLD DOWN CUSTOMERS' BILLS AND REDUCE USAGE CG&E HAD REQUESTED A TOTAL 122 MILLION INCREASE IN SEPTEMBER THE SETTLEMENT ALSO ALLOWS CG&E TO ADJUST RATES TO REFLECT FUTURE SAVINGS RESULTING FROM THE PENDING MERGER OF CG&E AND PSI RESOURCES INC TO FORM CINERGY CORP 9308270060 930827 BUSINESS BRIEF SHARPER IMAGE CORP QUARTERLY LOSS IS NARROWED CATALOG SALES GAINS CITED SHARPER IMAGE CORP SAID GROWING CATALOG SALES AND CUTS IN EXPENSES CAUSED IT TO REPORT A NARROWED SECONDQUARTER LOSS OF 239000 OR THREE CENTS A SHARE THAT COMPARES WITH A LOSS OF 432000 OR FIVE CENTS A SHARE A YEAR EARLIER FOR THE PERIOD ENDED JULY 31 THE SPECIALTY RETAILER SAID REVENUE SLIPPED 4 TO 324 MILLION FROM 338 MILLION THE COMPANY SAID IN SAN FRANCISCO THAT CATALOG SALES INCREASED 15 WHILE SAMESTORE SALES FELL 8 BECAUSE OF A SOFT MARKET BUT THAT CUTS IN EXPENSES WERE IMPROVING PROFIT MARGINS 9308270059 930827 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 AMOCO CANADA PETROLEUM CO 300 MILLION OF DEBENTURES DUE SEPT 1 2023 PRICED AS 675S AT 98733 TO YIELD 685 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 60 BASIS POINTS ABOVE TREASURYS RATED TRIPLEA BY BOTH MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO AMOCO CANADA IS A UNIT OF AMOCO CORP CHAMPION INTERNATIONAL CORP 100 MILLION OF DEBENTURES DUE SEPT 1 2023 PRICED AS 7625S AT 99276 TO YIELD 7687 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 140 BASIS POINTS ABOVE THE TREASURY 7125 30YEAR BOND RATED BAA1 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL HOME LOAN MORTGAGE CORP 150 MILLION OF STEPUP NOTES DUE SEPT 3 2003 PRICED AS 49S AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE ONEYEAR TREASURYS THE INTEREST RATES STEPS UP TO 67 ON SEPT 3 1996 THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF STEPUP DEBENTURES DUE SEPT 7 1998 PRICED AT PAR TO YIELD 435 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 52 BASIS POINTS ABOVE TREASURYS THE COUPON STEPS UP TO 555 IN TWO YEARS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS FEDERAL NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF STEPUP MEDIUMTERM NOTES DUE SEPT 8 1998 PRICED AS 44S AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 24 BASIS POINTS ABOVE TREASURYS THE COUPON STEPS UP TO 555 AFTER TWO YEARS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FMC CORP 200 MILLION OF SENIOR NOTES DUE SEPT 1 2003 PRICED AT PAR TO YIELD 645 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 100 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO HILLHAVEN CORP 175 MILLION OF SENIOR SUBORDINATED NOTES DUE SEPT 1 2001 PRICED AS 10125S AT 99625 TO YIELD 10195 THE NOTES WERE PRICED AT A SPREAD OF 477 BASIS POINTS ABOVE TREASURYS RATED BY SINGLEB2 BY MOODY'S AND SINGLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO JOHN DEERE CAPITAL CORP 200 MILLION OF NOTES DUE SEPT 2 1996 PRICED AS 4625S AT 9998 TO YIELD 4632 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 47 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO JOHN DEERE CAPITAL IS A UNIT OF DEERE & CO NWNL COS 120 MILLION OF NOTES DUE SEPT 15 2003 PRICED AS 6625S AT 99829 TO YIELD 6648 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 120 BASIS POINTS ABOVE TREASURYS RATED BAA1 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO UNIROYAL CHEMICAL CO 270 MILLION OF SENIOR NOTES DUE SEPT 1 2000 PRICED AT PAR TO YIELD 9 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES ARE RATED SINGLEB1 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO MAINE 170 MILLION GENERALOBLIGATION TAXANTICIPATION NOTES PRICED BY AN AG EDWARDS & SONS INC GROUP THE NOTES DUE JUNE 30 1994 ARE 35S PRICED AT 100568 AND ARE TO YIELD 28 THEY HAVE BEEN RATED MIG1 BY MOODY'S AND SP1PLUS BY S&P FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 1593 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 755 AND WEIGHTED AVERAGE MATURITY OF 357 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY FIRST BOSTON CORP THE OFFERING SERIES 1993192 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 72 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 177 MONTHS CITICORP 798 MILLION OF ASSETBACKED CERTIFICATES PRICED IN TWO PARTS GOLDMAN SACHS & CO WAS LEAD MANAGER OF A 750 MILLION SENIOR CLASS OF CERTIFICATES CITICORP SECURITIES MARKETS INC WAS LEAD MANAGER OF A 48 MILLION SUBORDINATE CLASS OF CERTIFICATES THE SELLERS OF THE MASTERCARD AND VISA CREDITCARD RECEIVABLES WERE CITIBANK SD NA AND CITIBANK NEV NA THE LOAN SERVICER IS CITIBANK SD THE LOANS WERE ISSUED IN A SOFT BULLET STRUCTURE THROUGH A SPECIALPURPOSE VEHICLE STANDARD CREDIT CARD MASTER TRUST I 19932 THE 750 MILLION IN SENIOR CERTIFICATES WERE PRICED AS 595 AT 9988 TO YIELD 5966 A 50BASISPOINT SPREAD ABOVE THE TREASURY 10YEAR NOTE THE CERTIFICATES WITH AN AVERAGE LIFE OF 10 YEARS WERE RATED TRIPLEA FROM FOUR MAJOR RATINGS AGENCIES MOODY'S S&P DUFF & PHELPS CO AND FITCH INVESTORS SERVICE INC THE 48 MILLION SUBORDINATE CLASS WAS PRICED AS 615S AT 99601 TO YIELD 6204 A 74BASISPOINT SPREAD ABOVE THE TREASURY 10YEAR NOTE THE CERTIFICATES WITH AN AVERAGE LIFE OF 10 YEARS WERE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE SENIOR CERTIFICATES WERE SUPPORTED BY THE SUBORDINATE CERTIFICATES AND A 5 CASH COLLATERAL ACCOUNT STRUCTURED TO SUPPORT BOTH THE SENIOR AND SUBORDINATE CERTIFICATES THE SUBORDINATE CERTIFICATES WERE SUPPORTED BY AN ADDITIONAL 2 CASH COLLATERAL ACCOUNT SEMIANNUAL INTEREST PAYMENTS BEGIN MARCH 7 1994 LONG ISLAND SAVINGS BANK 3039 MILLION OF FLOATINGRATE HOMEEQUITYLOAN CERTIFICATES PRICED THROUGH UNDEWRITERS LED BY LEHMAN BROTHERS INC ACCORDING TO MCM CORPORATEWATCH THE TRANSACTION ISSUED THROUGH LEHMAN HOME EQUITY LOAN TRUST 19932 WAS PRICED AT PAR TO FLOAT 31 BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE ALL OF THE REVOLVING HOMEEQUITY LINES OF CREDIT BACKING THE TRANSACTION ARE DEPOSITED BY THE LOAN ORIGINATOR LONG ISLAND SAVINGS INTO A SPECIALPURPOSE VEHICLE LEHMAN ASSET BACK SECURITIES CORP THE SECURITIES WERE RATED TRIPLEA BY BOTH MOODY'S AND S&P BASED ON A 150 MILLION SURETY BOND PROVIDED BY CAPITAL MARKETS ASSURANCE CORP THE ISSUE WITH A 434YEAR AVERAGE LIFE PAYS ACCORDING TO A 60MONTH MANAGED AMORTIZATION STRUCTURE BANCO NACIONAL DE COMERCIO EXTERIOR SNC GRAND CAYMAN BRANCH MEXICAN PARENT 75 MILLION OF 875 EUROBONDS DUE SEPT 28 2000 AT ISSUE AND REOFFER PRICE 99225 VIA SAMUEL MONTAGU & CO BONDS YIELD 89 A SPREAD OF 200 BASIS POINTS ABOVE COMPARABLE UK GILT GUARANTOR BANCO NACIONAL DE COMERCIO EXTERIOR SNC FEES 0875 POINT EUROMOL BV JAPANESE PARENT FOUR BILLION YEN OF REVERSECOUPON FLOATINGRATE EURONOTES DUE DEC 14 1998 AT ISSUE AND REOFFER PRICE PAR VIA LTCB INTERNATIONAL LTD ANNUAL COUPON 355 UNTIL DEC 14 1995 THEREAFTER REVERTING TO THREEMONTH LONDON INTERBANK OFFERED RATE FOR YEN FLAT KEEPWELL AGREEMENT WITH MITSUI OSK LINES LTD FEES UNDISCLOSED ISTITUTO BANCARIO SAN PAOLO DI TORINO NASSAU BRANCH ITALIAN PARENT 100 MILLION OF SUBORDINATED FLOATINGRATE EURONOTES DUE SEPT 24 2003 AT ISSUE AND REOFFER PRICE PAR VIA SWISS BANK CORP INTEREST PAYABLE SEMIANNUALLY AT 1875 BASIS POINTS BELOW SIXMONTH LIBOR FOR DOLLARS MINIMUM COUPON 54 MAXIMUM 10 FEES 05 POINT SUMITOMO CORP OVERSEAS CAPITAL LTD JAPANESE PARENT FIVE BILLION YEN OF STEPUP FIXEDRATE EUROBONDS DUE DEC 2 1998 AT ISSUE PRICE 101625 VIA SANWA INTERNATIONAL PLC COUPON 4 UNTIL DEC 2 1996 THEREAFTER STEPPING UP TO 51 BONDS CALLABLE ON DEC 2 1996 AT PAR KEEPWELL AGREEMENT WITH SUMITOMO CORP FEES 1625 POINTS TCHIBO HOLDING FINANCE ANJAN BV NETHERLANDS GERMAN PARENT 300 MILLION MARKS OF 675 EUROBONDS DUE SEPT 30 2003 AT ISSUE PRICE 10285 VIA DEUTSCHE BANK AG BONDS YIELD 6743 AT COMANAGERS' BREAKEVEN PRICE OF 10005 A MARGIN OF 43 BASIS POINTS ABOVE COMPARABLE GERMAN BUND GUARANTOR TCHIBO HOLDING AG FEES THREE POINTS LESS 02 POINT FOR LEAD MANAGER TREASURY CORP OF VICTORIA AUSTRALIAN AGENCY 100 MILLION AUSTRALIAN DOLLARS OF 725 EUROBONDS DUE SEPT 30 2003 AT ISSUE PRICE 10125 VIA HAMBROS BANK LTD BONDS YIELD 7359 AT COMANAGERS' BREAKEVEN PRICE OF 9925 A MARGIN OF 42 BASIS POINTS ABOVE COMPARABLE AUSTRALIAN GOVERNMENT BOND GUARANTOR STATE GOVERNMENT OF VICTORIA FEES 2125 LESS 0125 FOR LEAD MANAGER 9308270058 930827 FOREIGN EXCHANGE BUNDESBANK DECLINES TO CUT ITS RATES AND MARK POSTS GAIN AGAINST DOLLAR BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK GERMANY'S CENTRAL BANK SURPRISED CURRENCY MARKETS THURSDAY BY LEAVING ITS OFFICIAL INTEREST RATES UNCHANGED IN THE FACE OF BROAD EXPECTATIONS OF AN EASING THE BUNDESBANK'S DECISION TO LEAVE ITS DISCOUNT RATE UNCHANGED SENT THE MARK HIGHER AGAINST THE DOLLAR AND ALSO DEPRESSED THE US CURRENCY AGAINST STERLING AND THE YEN LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16675 MARKS DOWN FROM 16848 MARKS LATE WEDNESDAY THE US CURRENCY ALSO WAS CHANGING HANDS AT 10435 YEN DOWN FROM 10495 YEN STERLING WAS TRADING AT 15095 UP FROM 14820 ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10440 YEN AND AT 16705 MARKS THE BUNDESBANK'S DISCOUNT RATE USUALLY ACTS AS A FLOOR RATE FOR GERMAN LENDING AND INVESTORS HAD BEEN EXPECTING A CUT OF AT LEAST 25 BASIS POINTS AND POSSIBLY AS MUCH AS 50 BASIS POINTS SUCH A CUT WAS SEEN NECESSARY FOR TECHNICAL REASONS WITH GERMAN MONEY MARKET RATES ONLY SLIGHTLY ABOVE THE 675 DISCOUNT RATE THE BUNDESBANK HAD LITTLE FLEXIBILITY IN ITS WEEKLY REPURCHASE AGREEMENT OPERATIONS ITS CHIEF TOOL FOR INFLUENCING MONEY MARKETS FURTHERMORE INFLATION FIGURES FROM GERMANY'S FOUR LARGEST STATES RELEASED WEDNESDAY WEREN'T AS BAD AS HAD BEEN EXPECTED PRELIMINARY AUGUST FIGURES FOR OVERALL WEST GERMAN INFLATION RELEASED THURSDAY WERE ALSO SLIGHTLY BETTER THAN EXPECTED SHOWING PRICE GROWTH AT ABOUT 42 ANNUALLY BUT TRADERS SAID THOSE LEVELS CLEARLY STILL DISTURBED THE BUNDESBANK WHICH HAS SET 2 AS AN INFLATION TARGET JULY'S GROWTH IN THE MONEY SUPPLY OF 75 ON AN ANNUAL BASIS WAS ALSO FAR ABOVE THE BUNDESBANK'S TARGET OF A 4565 ANNUAL RATE JOHN NELSON DIRECTOR OF GLOBAL FOREIGN EXCHANGE AT BARCLAYS BANK IN NEW YORK SAID THE DECISION BY BUNDESBANK OFFICIALS WAS CONSISTENT WITH THE BANK'S POLICY OF SLOW MEASURED EASING OF RATES DOMESTIC STABILITY IN BOTH FISCAL AND MONETARY POLICY IS THEIR PARAMOUNT OBJECTIVE MR NELSON SAID THEY ALWAYS ERR ON THE SIDE OF CONSERVATISM HAD THE BUNDESBANK CUT RATES THURSDAY SEVERAL OTHER EUROPEAN CENTRAL BANKS WOULD HAVE BEEN EXPECTED TO FOLLOW MANY EUROPEAN COUNTRIES MOVED RATES HIGHER LAST MONTH IN AN ATTEMPT TO DEFEND THEIR CURRENCIES AGAINST THE STRONG MARK THE HIGH RATES ARE BELIEVED TO BE SLOWLY STRANGLING MANY EUROPEAN ECONOMIES BUT MR NELSON SAID THE BUNDESBANK PROBABLY WOULDN'T BE SWAYED BY THAT IN DECIDING WHAT TO DO ABOUT RATES BUNDESBANK OFFICIALS WILL NOT COMPROMISE THEIR FIDELITY TO DOMESTIC POLICY FOR THE GOOD OF THE EUROPEAN COMMUNITY MR NELSON SAID THEY'VE MADE THAT QUITE CLEAR AND THIS IS ANOTHER EXAMPLE THE MARK GAINED NOTABLY ON EUROPEAN CURRENCIES AFTER THE BUNDESBANK'S ANNOUNCEMENT EVEN AFTER PROFITTAKING IN NORTH AMERICAN TRADING THE MARK WAS AT 35067 FRENCH FRANCS LATE THURSDAY IN NEW YORK COMPARED WITH 34717 FRANCS WEDNESDAY AND AT 8086 SPANISH PESETAS COMPARED WITH 8006 PESETAS WEDNESDAY THE GERMAN CURRENCY WAS AT 2133 BELGIAN FRANCS LATE THURSDAY COMPARED WITH 2113 BELGIAN FRANCS WEDNESDAY RICK PORTER A VICE PRESIDENT AT BANK BRUSSELS LAMBERT IN NEW YORK SAID THAT THE EUROPEAN CURRENCIES WERE WEAKENING EVEN BEFORE THE BUNDESBANK'S ANNOUNCEMENT FOR DIVERSE REASONS THE FRENCH FRANC WAS HURT BY A REPORT THAT PRIME MINISTER EDOUARD BALLADUR WASN'T IN A RUSH TO RETURN THE CURRENCY TO ITS NARROW FLUCTUATION BAND AGAINST THE MARK HE SAID MEANWHILE HE ADDED THE BELGIAN FRANC HAD BEEN UNDER PRESSURE FROM INTERNECINE SQUABBLING ABOUT THE BELGIAN FRANC'S LINK TO THE MARK 9308270057 930827 REVIEW & OUTLOOK EDITORIAL CALIFORNIA AT RISK CALIFORNIA'S REFUSAL TO GIVE UP TAXATION OF THE WORLDWIDE EARNINGS OF MULTINATIONAL COMPANIES DOING BUSINESS THERE IS LEADING TOWARD A SHOWDOWN BRITAIN HAS THREATENED TO RETALIATE AGAINST THIS UNITARY TAX WHICH IT SEES AS UNFAIR TO FOREIGN COMPANIES IF IT DOES AND OTHER SIMILARLY AGGRIEVED NATIONS JOIN IT PRESIDENT CLINTON COULD SEE FEDERAL CONTROL OVER FOREIGN ECONOMIC POLICY BEING CHOPPED INTO LITTLE PIECES HE AND THE STATE MIGHT BE WISE TO END THIS LONGRUNNING DISPUTE BRITAIN HAS BEEN LEADING THE INTERNATIONAL OUTCRY BARCLAYS BANK PLC WON A SUIT AGAINST THE STATE'S TAX COLLECTORS IN A CALIFORNIA STATE COURT BY CONTENDING THAT THE TAX VIOLATES DUE PROCESS AND INTERFERES WITH THE US FEDERAL GOVERNMENT'S CONDUCT OF FOREIGN ECONOMIC POLICY THE RULING WAS UPHELD BY AN APPEALS COURT BUT THEN OVERTURNED BY THE CALIFORNIA SUPREME COURT PRESIDENTS REAGAN AND BUSH OPPOSED THE UNITARY TAX PRESIDENT CLINTON HAS BEEN TRYING TO AVOID THE ISSUE AS THE JOURNAL'S RICK WARTZMAN REPORTED FROM WASHINGTON RECENTLY THE US SUPREME COURT IN MAY ASKED THE ADMINISTRATION FOR AN OPINION TO HELP THE COURT DECIDE THIS FALL WHETHER TO HEAR A BARCLAYS APPEAL OF THE CALIFORNIA HIGH COURT RULING BUT THERE HAS BEEN NO RESPONSE YET BRITAIN IS THREATENING TO START ELIMINATING TAX CREDITS FOR US COMPANIES IF THE ISSUE ISN'T RESOLVED BY THE END OF THE YEAR THE BRITISH TREASURY POINTEDLY SUGGESTED THAT CALIFORNIABASED COMPANIES WOULD BE TARGETED FIRST IF THE DEADLINE ISN'T MET SINGLING OUT CALIFORNIA FIRMS WOULD GIVE THE CONTROVERSY A NEW TWIST BRITAIN WOULD BE SAYING IN EFFECT THAT IF CALIFORNIA IS GOING TO INSIST ON RUNNING ITS OWN FOREIGN ECONOMIC POLICY THEN A FOREIGN GOVERNMENT IS ENTITLED TO RETALIATE DIRECTLY AGAINST CALIFORNIA IN A LIMITED BUT SIGNIFICANT WAY CALIFORNIA WOULD BE TREATED LIKE A SEPARATE COUNTRY THE POSSIBLE DANGERS FOR THE US FEDERAL SYSTEM OF ALLOWING A STATE TO BUTT HEADS WITH A FOREIGN GOVERNMENT HAS OCCURRED TO QUITE A FEW PEOPLE INCLUDING THE FOUNDING FATHERS IF FOREIGN GOVERNMENTS START RETALIATING AGAINST INDIVIDUAL AMERICAN STATES BILATERAL TAX TREATIES AMONG OTHER RELATIONSHIPS COULD BE THROWN INTO DISARRAY IT WOULD NOT BE A GOOD PRECEDENT FOR DISPUTES INVOLVING OTHER STATES AMERICA'S TAX EXECUTIVES INSTITUTE WITH SOME 4700 MEMBERS REPRESENTING THE 2200 LARGEST US COMPANIES IS EDGY OVER THE BARCLAYS CASE IT APPEALED TO THE CLINTON ADMINISTRATION ON MAY 1 TO FILE A BRIEF IN RESPONSE TO THE SUPREME COURT REQUEST US COMPANIES REPRESENTED BY THE INSTITUTE ALL ARE AFFECTED DIFFERENTLY BY THE CALIFORNIA LAW SOME FAVORABLY AND SOME UNFAVORABLY SAID THE TEI LETTER BUT ALL WANT THE MATTER SETTLED AS MR WARTZMAN'S ARTICLE NOTED CALIFORNIA'S LEGISLATURE IS BEING PRODDED BY THE WHITE HOUSE TO MEET BRITAIN'S OBJECTIONS THROUGH LEGISLATION A CALIFORNIA SENATE COMMITTEE HAS PROPOSED OFFERING FOREIGN COMPANIES THE CHOICE OF AN ALTERNATIVE METHOD OF TAXATION IF THE UNITARY TAX WAS FELT TO BE ONEROUS THE ALTERNATIVE A SOCALLED WATER'S EDGE TAX WOULD ENCOMPASS EARNINGS ONLY IN THE US BUT AT SOME PENALTY FOR COMPANIES USING IT THE BRITISH TREASURY'S INITIAL RESPONSE WAS THAT IF THE RULE IS TO BE WATER'S EDGE IT SHOULD BE WATER'S EDGE FOR EVERYONE NOT A QUESTION OF CHOICE THE WORLD AT LARGE MIRED IN A GLOBAL DOWNTURN IS EDGY ABOUT ECONOMIC ISSUES OF ALL KINDS AND NOT DISINCLINED TO STRIKE BACK AT A CLINTON ADMINISTRATION THAT HAS SPENT A LOT OF TIME CRITICIZING ITS TRADING PARTNERS CALIFORNIA WILL TAKE A 4 BILLION HIT IN TAX REFUNDS AND LOST REVENUES IF THE US SUPREME COURT GOES AGAINST IT MAYBE IT IS TIME FOR THE CLINTONITES TO URGE THE CALIFORNIA LEGISLATURE TO CONSIDER A RETREAT TOWARD TAX POLICIES THAT MORE BEFIT AN AMERICAN STATE THAN A SOVEREIGN GOVERNMENT 9308270056 930827 A RIVER RAN OVER IT AND A MISSOURI SPAN IS SHOWING THE STRAIN BUT BRIDGE INSPECTORS USING GRIT AND HIGH TECHNOLOGY UNLOCK ITS MURKY SECRETS BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL GLASGOW MO THE MARAUDING BIG MO HAS LEFT A BIG MESS ED HASSINGER AND FRIENDS ARE TRYING TO GET TO THE BOTTOM OF IT IN A SMALL BOAT BULLIED BY THE CURRENT MR HASSINGER JIM BOWDEN AND CHIP JONES STRUGGLE UP THE MISSOURI RIVER LOOKING FOR THE RAVAGES OF RECENT RECORD FLOODS THE THREE ARE BRIDGE INSPECTORS FOR THE MISSOURI HIGHWAY AND TRANSPORTATION DEPARTMENT THEIR TARGET IS THE GLASGOW BRIDGE A MASSIVE STEEL AND CONCRETE SPAN THAT TAKES STATE ROUTE 240 ACROSS A 2000FOOT EXPANSE OF THE SWOLLEN RIVER THE FEAR IS THAT RAGING FLOOD WATERS HAVE SCOURED OUT TONS OF ROCK FROM THE RIVERBED UNDERMINING THE BRIDGE'S SUPPORTS FOR NOW THE BRIDGE IS CLOSED HOW SOON IT OPENS AGAIN WILL DEPEND ON WHAT THE INSPECTORS FIND WHAT OTHER JOB LETS YOU GO SWIMMING DIVING AND BOATING AND GET PAID FOR IT ASKS MR HASSINGER WRYLY BUT LATER WHEN HIS MOTORIZED SKIFF SPINS OUT OF CONTROL IN TREACHEROUS CURRENTS AND HEADS TOWARD A BRIDGE PIER ONE THING IS CLEAR THIS ISN'T WHERE THE FUN BEGINS BUT WHERE IT ENDS BRIDGES DON'T FIGURE MUCH ON PEOPLE'S MINDS UNTIL RIVERS TAKE THEM BACK NOW WITH WATERS OF THE 1993 MIDWEST FLOOD RECEDING AND CLEANUP UNDER WAY BRIDGES ARE ALL SOME PEOPLE ARE THINKING ABOUT AS MANY AS 40 APPEAR TO BE DAMAGED IN MISSOURI ALONE SCORES OF OTHERS HAVE BEEN UNDERMINED IN SIX OTHER STATES INUNDATED BY FLOOD WATERS FROM BOTH THE MISSOURI AND MISSISSIPPI RIVERS ESTIMATES TO REPLACE OR REPAIR THEM ALL ALONG WITH BATTERED RAIL LINES AND ROADWAYS RUN INTO THE HUNDREDS OF MILLIONS OF DOLLARS THAT MAY BE THE SMALLEST PART OF THE COST WITHOUT THESE BRIDGES FARMERS CAN'T GET TO THEIR FIELDS MERCHANTS CAN'T REBUILD THEIR SHOPS AND WHOLE TOWNS FIND THEMSELVES CUT OFF FROM THE WORLD IT'S LIKE SOMEONE IS PUTTING A ROPE AROUND YOUR HOUSE AND SAYING YOU CAN'T GO IN IT' LAMENTS BILL MEYER A FARMER FRUSTRATED BY THE STATE'S DECISION TO CLOSE THE GLASGOW BRIDGE LAST WEEK HIS FLOODDAMAGED HOUSE SITS ON THE FLAT LANDS WEST OF THE MISSOURI GLASGOW POPULATION 1295 AND THE SUPPLY LINE FOR HIS AND OTHER FARMS IS ON THE OPPOSITE SIDE A ROAD THAT ONCE PROVIDED ACCESS TO TOWNS WEST OF HIS FARM HAS BEEN WASHED OUT MR MEYER WANTS HIS BRIDGE BACK YESTERDAY THE 32YEAROLD MR HASSINGER AND COMPANY WOULD LIKE TO OBLIGE BUT SAFETY CONCERNS ARE PARAMOUNT AND ON ONE RECENT DAY THE RIVER STILL BLOATED WITH FLOOD WATERS IS SHOWING INSPECTORS JUST WHAT KIND OF CHALLENGES THEY FACE THE BRIDGE'S CONCRETE PIERS HAVE TO BE PROBED AND PLUMBED WITH ELECTRONIC TOOLS BROUGHT ALONG FOR THE OCCASION BUT AN EIGHTKNOT CURRENT SEIZES THE BOW OF THEIR FLATBOTTOMED SKIFF AND SLAMS IT AGAINST ONE OF THE PIERS HANG ON GASPS MR HASSINGER AS MR BOWDEN 45 WRENCHES THE TILLER OF THE OUTBOARD MOTOR AND STEERS THE BOAT CLEAR HE EDGES BACK TOWARD THE PIER WITH MR HASSINGER POISED LIKE A WHALER READY TO STRIKE WITH A 20FOOT FIBERGLASS POLE IN HIS HAND AT THE POLE'S END IS A SONAR TRANSDUCER A GADGET THAT USES SOUND WAVES TO SEE THROUGH THE SWIRLING CHOCOLATE WATERS A DOZEN TIMES MR HASSINGER PLUNGES THE ELECTRONIC HARPOON INTO THE RIVER MR JONES 27 PLOTS READOUTS ON A DEPTHFINDER WIRED TO THE TRANSDUCER SLOWLY BUILDING A PROFILE OF THE RIVER BOTTOM CALCULATING THE FINDINGS LATER MR HASSINGER DOESN'T LIKE WHAT HE SEES THE RIVERBED APPEARS TO HAVE DROPPED FIVE TO 10 FEET SINCE DIVERS MEASURED IT THREE YEARS AGO AT THAT LEVEL THE BRIDGE'S PIERS ARE LIKELY TO BE IN TROUBLE MR HASSINGER PREVIOUSLY HAD CALLED HIS OFFICE IN JEFFERSON CITY MO HOPING TO LOCATE PLANS THAT MIGHT SHOW THE PIERS RUN DEEPER THAN SUPPOSED UNLESS THEY FIND SOMETHING THAT TELLS US OTHERWISE THAT PIER IS UNDERMINED HE SAYS THIS SCENE IS APT TO BE ALLTOOFAMILIAR AS INSPECTORS MOVE ALONG THE MULTISTATE CHAIN OF DEVASTATION THAT INCLUDES HUNDREDS OF MILES OF WASHED OUT OR WATERLOGGED ROADS RAILROAD TRACKS AND UTILITYTRANSMISSION FACILITIES THE EXTENT OF DAMAGE IS DUMBFOUNDING EVEN TO VETERANS OF OTHER NATURAL DISASTERS IT'S UNREAL LIKE BEING ON ANOTHER PLANET SAYS CHARLES KRIEGEL A FEDERAL RAILROAD ADMINISTRATION TRACK INSPECTOR FOR THE PAST 15 YEARS HIS RECENT INSPECTIONS OF SEVERAL MISSOURI RAIL LINES PROVIDE TWO GRAPHIC EXAMPLES THE RIVER AT ONE POINT CARVED OUT A 2000FOOT GAP 73 FEET DEEP IN A RAILROAD EMBANKMENT AT ANOTHER SPOT IN A FIELD NEAR A SANTA FE RAILWAY MAINLINE TRACK TWO SHAPES THAT MR KRIEGEL ORIGINALLY MISTOOK FOR FUEL TANKS WERE WOODEN COFFINS RIPPED BY FLOOD WATERS FROM A NEARBY CEMETERY WORKING IN THE WAKE OF THE FLOOD THUS POSES UNUSUAL HEADACHES AND HAZARDS FOR INSPECTORS MR HASSINGER SAYS HE AND HIS COLLEAGUES CRASHED THEIR BOAT INTO A SUBMERGED HIGHWAY YIELD SIGN WHILE SPEEDING ABOVE FLOODED ROADS AND FIELDS TO INSPECT THE BOONVILLE MO BRIDGE OTHER INSPECTORS TRYING TO REACH THE INTERSTATE 70 BRIDGE AT ROCHEPORT MO FOUND THEMSELVES IN WET SUITS AND WADING AND SWIMMING THROUGH ROTTING CHESTDEEP MUCK TO REACH THE APPROACH PIERS AT ANOTHER NEARBY BRIDGE THEY FOUND EQUALLY FOUL CONDITIONS PHEW DEAD FISH SAYS ALAN TRAMPE RECALLING THE DAY OF SLOGGING THROUGH STAGNANT WATERS IN 90DEGREEPLUS HEAT DESPITE THE HARDSHIPS THE MIDWEST FLOODS REPRESENT A HIGHWATER MARK FOR INSPECTORS IT'S HOT THE BUGS ARE BITING AND THE CURRENT BUFFETS THE BOAT SAYS DAN CECCHI OF COLLINS ENGINEER'S INC A CHICAGO CONSULTING CONCERN BUT YOU GET TO BE PART OF A HISTORIC EVENT IT'S LIKE BEING IN THE WORLD SERIES FOR BRIDGE INSPECTORS BACK AT THE ROUTE 240 BRIDGE IN GLASGOW COMMERCIAL DIVERS MORE EXPERIENCED IN SWIFT CURRENTS ARE CHECKING THE PIER WHERE MR HASSINGER SUSPECTS UNDERMINING WORKING IN ZERO VISIBILITY KENNETH JOHANSSON A DIVER FOR OCEANEERING INTERNATIONAL INC FEELS HIS WAY DOWN THE CONCRETE SLAB SEARCHING FOR GAPS BETWEEN THE BOTTOM OF THE PIER AND THE RIVERBED IT'S JUST TOTAL BLACKNESS LIKE BEING IN A CLOSET HE SAYS I FEEL SMALL STICKS AND ROCKS ROLLING BY ME MR JOHANSSON REPORTS SOME ENCOURAGING NEWS THE MAIN BRIDGE PIERS APPEAR TO REST SECURELY ON THE BOTTOM BUT ON THE DOWNSIDE ONE OF THE BRIDGE'S APPROACH PIERS IS UNDERMINED WITH A TOPPLED SECTION OF A RAILROAD BRIDGE PRESSING AGAINST IT MR HASSINGER AFTER AN AGONIZING TELEPHONE CONSULTATION WITH A SUPERIOR ANNOUNCES THAT THE BRIDGE WILL STAY CLOSED UNTIL REPAIRS CAN BE MADE IT MAY BE A MONTH BEFORE THE BRIDGE REOPENS WE AREN'T ALWAYS THE BEARER OF GOOD TIDINGS BUT SAFETY REQUIRES THAT AN UNSTABLE BRIDGE NOT BE OPENED PREMATURELY HE SAYS THE DECISION IS A BLOW TO FARMER MR MEYER AND TO CARRIE HENKE A THIRDGRADE TEACHER WHO DEPENDS ON THE BRIDGE I FEEL LIKE SOMEBODY KICKED ME IN THE STOMACH SHE SAYS IT'S ENOUGH TO HAVE A NERVOUS BREAKDOWN 9308270055 930827 RECENT SEC FILINGS WASHINGTONTHE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BOISE CASCADE CORP AN OFFERING OF 75 MILLION DEPOSITARY SHARES VIA GOLDMAN SACHS & CO LAZARD FRERES & CO AND SALOMON BROTHERS INC GENERAL PUBLIC UTILITIES CORP AN OFFERING OF 35 MILLION COMMON SHARES VIA MERRILL LYNCH & CO GOLDMAN SACHS AND MORGAN STANLEY & CO RYKOFFSEXTON INC AN OFFERING OF 130 MILLION OF SENIOR SUBORDINATED NOTES DUE 2003 VIA MERRILL LYNCH SIERRA PACIFIC RESOURCES AN OFFERING OF 25 MILLION COMMON SHARES VIA AG EDWARDS & SONS AND KIDDER PEABODY & CO AND LEHMAN BROTHERS SOUTHWEST SECURITIES GROUP INC AN OFFERING OF 1180000 COMMON SHARES VIA RAYMOND JAMES & ASSOCIATES INC SOUTHWEST SECURITIES INC AND DA DAVIDSON & CO 9308270054 930827 CLINTON LOOKS TO A BANK IN BANGLADESH FOR MODEL TO HELP US POOR GET LOANS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEW AMERICANS LOOK TO BANGLADESH FOR MODELS OF ECONOMIC DEVELOPMENT BUT PRESIDENT CLINTON WANTS TO TRANSPLANT AN INVESTMENT IDEA FROM THAT POOR ASIAN NATION TO THE US CONGRESS IS DEBATING A CLINTON PLAN TO ESTABLISH A 382 MILLION GOVERNMENT FUND TO EXPAND LENDING IN POOR INNERCITY AND RURAL AREAS WHERE COMMERCIAL BANKS FIND IT TOO COSTLY OR RISKY TO LEND WHEN THE PRESIDENT LAUNCHED HIS PROPOSAL AT A WHITE HOUSE CEREMONY HE REFERRED TO LESSONS HE HAD LEARNED FROM A REMARKABLE MAN NAMED MOHAMMED YUNUS WHO TOLD ME HOW THROUGH THE GRAMEEN BANK HE HAD MADE MARKETRATEINTEREST LOANS TO POOR VILLAGE WOMEN IN BANGLADESH AND OVER 95 OF THEM HAD ACTUALLY PAID THE LOANS BACK MR YUNUS A USTRAINED ECONOMIST FOUNDED GRAMEEN BANK A DECADE AGO TO MAKE SMALL LOANS TO PEOPLE FAR TOO POOR TO GET CREDIT ELSEWHERE THE BANK BASED IN THE CAPITAL CITY OF DHAKA HAS BEEN SPECTACULARLY SUCCESSFUL IN MAKING DEVELOPMENT LOANS TO THE POOR THAT GET PAID BACK IT LENDS ABOUT 25 MILLION A MONTH MORE THAN ANY OTHER BANK IN BANGLADESH IT HAS LENT TO MORE THAN 16 MILLION PEOPLE IN 32000 VILLAGES THE BIGGEST LOAN THE BANK MAKES IS 1200 BUT THE AVERAGE LOAN IS JUST 100 MANY BORROW MUCH LESS TO BUY A COW OR MATERIAL TO MAKE FISHING NETS FOR INSTANCE MR YUNUS STARTED WITH FUNDS HE PERSONALLY BORROWED FROM COMMERCIAL BANKS AND LATER OBTAINED AN INFUSION FROM THE BANGLADESHI GOVERNMENT GRAMEEN BANK IS NOW SELFSUSTAINING SIMILARLY THE PROPOSED CLINTON DEVELOPMENT BANKS WOULD START OFF WITH GOVERNMENT FUNDS BUT WOULD BE EXPECTED TO BECOME SELFSUSTAINING EVENTUALLY IN THE US ABOUT 40 FUNDS MOST SUPPORTED BY FOUNDATIONS PATTERN THEMSELVES ON THE GRAMEEN MODEL ACCORDING TO BEVERLY SMITH EXECUTIVE DIRECTOR OF THE ASSOCIATION FOR ENTERPRISE OPPORTUNITY IN CHICAGO THEY ALL HAVE VERY LOW DEFAULT RATES OF BETWEEN 0 AND 3 SHE SAYS ALTHOUGH THEIR SCOPE HAS BEEN LIMITED COMMERCIAL BANKS DON'T DO ANY BETTER LAST YEAR 3 OF COMMERCIAL BANK ASSETS WERE IN NONCURRENT LOANS LEASES AND FORECLOSED REAL ESTATE GRAMEEN LENDS WITHOUT COLLATERAL OR WRITTEN AGREEMENTS TO GET A LOAN A WOMAN MUST FIND FOUR FRIENDS WHO WILL AGREE TO HELP HER PAY THE LOAN BACK IF NECESSARY INSTEAD OF COLLATERAL THE BANK'S SECURITY IS A GROUP OF FRIENDS WORKING TOGETHER MR YUNUS EXPLAINED DURING A VISIT HERE EARLIER THIS YEAR IF ONE WOMAN DEFAULTS ON PRINCIPAL OR INTEREST THE OTHERS IN THE GROUP CAN'T BORROW UNTIL THE LOAN IS REPAID MICROLOAN FUNDS FIND THAT THE GRAMEEN BORROWING CIRCLE APPROACH WORKS IN THE US THE WOMEN'S SELFEMPLOYMENT PROJECT IN CHICAGO AND THE LAKOTA FUND ON THE PINE RIDGE INDIAN RESERVATION IN SOUTH DAKOTA FOR INSTANCE BOTH LEND TO WOMEN WHO HAVE FORMED PEER GROUPS TO HELP EACH OTHER CARRY AND REPAY THE LOAN LIKE GRAMEEN BANK THEY HAVE FOUND THAT LOANS TO WOMEN HAVE GREATER SOCIAL IMPACT THAN LOANS TO MEN WOMEN ARE MORE LIKELY TO FUNNEL PROFITS INTO EDUCATION HEALTH CARE AND IMPROVED NUTRITION FOR THEIR FAMILIES THE PROBLEM IS IN EXPANDING THE PROGRAMS IN THE US I'M NOT AWARE OF ANY PROGRAM THAT'S LOOSELY BASED ON GRAMEEN THAT HAS BEEN ABLE TO GROW BEYOND SEVERAL HUNDRED BORROWERS SAYS ALEX COUNTS AN AMERICAN AIDE TO MR YUNUS WHO IS WRITING A BOOK ON THE IMPACT OF GRAMEEN BANK BY CONTRAST THE TYPICAL GRAMEEN BANK BRANCH THERE ARE ABOUT 900LENDS TO BETWEEN 1500 AND 2000 PEOPLE AT ANY ONE TIME IN THE US WELFARE LAWS REALLY ACT AS A DISINCENTIVE TO GET INTO A PROGRAM LIKE THIS BECAUSE BENEFITS INCLUDING HEALTH CARE CAN END ABRUPTLY AS INCOME RISES MR COUNTS SAYS AS PART OF ITS EFFORTS TO RESTRUCTURE WELFARE THE CLINTON ADMINISTRATION IS STUDYING WAYS TO IMPROVE THE TRANSITION FROM WELFARE TO WORK EVEN THOUGH THE DEFAULT RATE ON DEVELOPMENT LOANS IN THE US IS LOW COMMERCIAL BANKS AREN'T RUSHING TO LEND TO POOR WOMEN BANKS AREN'T IN THE BUSINESS OF DEVELOPING BUSINESSES THEY'RE IN THE BUSINESS OF LENDING RISKFREE TO ESTABLISHED BUSINESSES SAYS MS SMITH OF THE ASSOCIATION FOR ENTERPRISE OPPORTUNITY BECAUSE THE FUNDS WORK INTENSIVELY WITH THEIR BORROWERS BANKS COULDN'T AFFORD TO DO WHAT THE FUNDS DO AND MAKE MONEY SHE SAYS IN BANGLADESH GRAMEEN SEEKS OUT BORROWERS PEOPLE SHOULDN'T COME TO THE BANK BANKS SHOULD GO TO THE PEOPLE MR YUNUS SAYS EXPLAINING THAT GRAMEEN MAKES LOANS TO HOMES AND BUSINESSES IN 32000 VILLAGES IN BANGLADESH WE WORK ON THEIR DOORSTEPS DEVELOPMENT LENDERS IN THE US AREN'T AS AGGRESSIVE MANY AREAS INCLUDING MY OWN HOME DISTRICT CITY OF SAN ANTONIO CANNOT EVEN ABSORB CREDIT BECAUSE THE RATES OF UNEMPLOYMENT ARE SO HIGH AND THE JOB CREATIONS ARE SO LOW SAYS HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ D TEXAS BUT MR YUNUS SEES NO REASON WHY THE GRAMEEN MODEL WON'T WORK IN POOR NEIGHBORHOODS OF THE WEALTHIEST COUNTRIES THE RIGHT TO CREDIT SHOULD BE CONSIDERED A HUMAN RIGHT HE SAYS TRADITIONAL BANKS SAY THE MORE MONEY YOU HAVE THE MORE YOU CAN GET' WE SAY EVEN IF YOU HAVE NOTHING YOU CAN BORROW SOMETHING' THE TRUE MEANING OF THE WORD CREDIT IS TRUST THIS IS ONE OF THE REASONS WHY GRAMEEN'S DEFAULT RATE IS NO WORSE THAN THE 3 BADLOAN RATE OF US COMMERCIAL BANKS MOREOVER GRAMEEN'S PERFORMANCE INCLUDES ONE SMALL AREA IN WHICH THE DEFAULT RATE HAS RECENTLY SOARED TO ABOUT 30 THE RESULT OF HEAVY FLOODS AND POOR LOCAL MANAGEMENT MR COUNTS SAYS MICROLOAN FUNDS BASED ON THE GRAMEEN MODEL ARE JUST ONE OF THE COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS THE CLINTON PLAN WOULD SUPPORT MUCH OF THE MONEY WOULD GO INTO BANKS AND CREDIT UNIONS THAT CONCENTRATE ON REBUILDING BLIGHTED COMMUNITIES WITH HOUSING AND SMALLBUSINESS EXPANSION LOANS THAT CONVENTIONAL COMMERCIAL BANKS WON'T MAKE BUT WHEN MR CLINTON TALKS OF DEVELOPMENT HE OFTEN STRESSES THE IMPORTANCE OF THE GRAMEEN APPROACH OF LENDING TO THE VERY POOREST I THINK MUHAMMED YUNUS SHOULD BE GIVEN A NOBEL PRIZE MR CLINTON SAID IN AN INTERVIEW LAST YEAR WITH ROLLING STONE MAGAZINE HE MADE ENTERPRISE WORK HE PROMOTED INDEPENDENCE NOT DEPENDENCE 9308270053 930827 SAHARA GAMING CORP APPROVED LAS VEGAS NEV THE NEVADA GAMING COMMISSION APPROVED THE MERGER OF SAHARA RESORTS AND SAHARA CASINO PARTNERS LP INTO A NEW CASINO COMPANY CALLED SAHARA GAMING CORP THE COMPANIES SAID THE COMBINATION WILL RESULT IN A SIMPLIFIED ORGANIZATIONAL STRUCTURE THAT WILL REDUCE ADMINISTRATIVE AND OTHER EXPENSES AND THAT MANAGEMENT BELIEVES WILL BE MORE ATTRACTIVE AND UNDERSTANDABLE TO INVESTORS SAHARA CASINO PARTNERS IS A MASTER LIMITED PARTNERSHIP THAT OWNS AND OPERATES THE SAHARA HACIENDA AND SANTA FE HOTEL/CASINOS IN LAS VEGAS AND THE PIONEER HOTEL & GAMBLING HALL IN LAUGHLIN NEV SAHARA RESORTS OWNS THE GENERAL PARTNERS OF SAHARA CASINO PARTNERS 9308270052 930827 AT&T CABLETV FIRMS DISCUSS LINKING THEIR CUSTOMERS IN MULTIMEDIA NETWORK BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN TELEPHONE & TELEGRAPH CO HAS BEEN HOLDING TALKS WITH THE NATION'S BIGGEST CABLETELEVISION COMPANIES ABOUT LINKING THEIR CUSTOMERS INTO ONE BIG INTERACTIVE MULTIMEDIA NETWORK ACCORDING TO AT&T'S NEW CHIEF OF MULTIMEDIA PRODUCTS AND SERVICES AT&T'S TALKS INVOLVE A COMPREHENSIVE NETWORK PLAN FROM AT&T BELL LABORATORIES IT WOULD TIE THE COUNTRY'S DISPARATE CABLE SYSTEMS INTO ONE NATIONAL NETWORK OF COMMON SWITCHING AND TRANSMISSION FUNCTIONS SAID ROBERT M KAVNER EXECUTIVE VICE PRESIDENT AND CHIEF OF ITS MULTIMEDIA PRODUCTS AND SERVICES GROUP LINKING THESE NETWORKS INTO ONE WITH A COMMON COMMUNICATIONS STANDARD WOULD TURN THE CABLE CARRIERS INTO MORE THAN JUST PROVIDERS OF TELEVISION PROGRAMS AND GIVE CUSTOMERS A WIDER CHOICE OF CARRIERS FOR THEIR COMMUNICATIONS SERVICES COMPATIBLE CABLE NETWORKS WITH TWOWAY SWITCHING CAPABILITY WOULD ALLOW CUSTOMERS ON DIFFERENT CABLE SYSTEMS TO PHONE ONE ANOTHER THROUGH THEIR CABLE LINES SEND ELECTRONIC MESSAGES OR EVEN PLAY GAMES TOGETHER REGARDLESS OF THEIR LOCATIONS MR KAVNER SAID AT&T HAS BEEN PROPOSING A SIMILAR SETUP TO LOCAL PHONE COMPANIES WHICH HAVE BEEN FIGHTING FOR THE LEGAL RIGHT TO OFFER CABLETV SERVICES IN COMPETITION WITH CABLE COMPANIES OVER THEIR LOCAL PHONE NETWORKS EARLIER THIS WEEK IN A POTENTIALLY PRECEDENTSETTING CASE A FEDERAL JUDGE IN VIRGINIA RULED THAT BELL ATLANTIC CORP COULD OFFER PROGRAMMING TO ITS CUSTOMERS VIA ITS PHONE LINES MOST OF WHAT'S PROVIDED TODAY BY A CABLE COMPANY ALLOWS A CUSTOMER TO TALK TO THE CABLE COMPANY'S SYSTEM USING A REMOTE CONTROL AND THEIR TV SET MR KAVNER SAID WE SIT IN THE LONELINESS OF OUR BEDROOMS AND HAVE A RELATIONSHIP WITH A DATABASE OWNED BY OUR CABLE COMPANY MR KAVNER THE ARCHITECT BEHIND AT&T'S PUSH INTO POCKET DATA COMMUNICATORS AND OTHER MULTIMEDIA PRODUCTS SAID AT&T AIMS TO TURN THESE CABLE BEDBUGS INTO GAMEPLAYING HOMESHOPPING INTERACTORS THE IDEA IS MORE THAN JUST TO SPUR A HUGE NEW EQUIPMENT MARKET MORE SIGNIFICANTLY MOST OF THESE ELECTRONIC CONVERSATIONS WOULD EVENTUALLY FLOW TO THE AT&T NETWORK ALLOWING AT&T TO KEEP ITS NETWORK CAPACITY PROFITABLY FILLED MULTIMEDIA IS A CATCHWORD FOR THE CONVERGING TECHNOLOGIES OF TELECOMMUNICATIONS COMPUTERS AND TELEVISION TO TEST ITS IDEAS FOR LINKING INTERACTIVE MULTIMEDIA NETWORKS MR KAVNER SAID AT&T WILL JOIN TWO INTERACTIVE CABLETV FIELD TRIALS FOR WHICH AT&T IS PROVIDING CRITICAL TECHNOLOGY ONE TRIAL INVOLVES A MARKET TEST THIS FALL OF INTERACTIVE SERVICES IN CASTRO VALLEY CALIF BY VIACOM INC THE CABLE OPERATOR WHICH OWNS SUCH POPULAR CABLE NETWORKS AS MTV VH1 AND NICKELODEON THE OTHER TRIAL OF INTERACTIVE TV SERVICE IN ORLANDO FLA IS BEING CONDUCTED BY TIME WARNER INC AT&T WOULD LINK THIS NETWORK TRIAL THROUGH A POWERFUL ATM VIDEO SERVER INSTALLED AT BELL LABS' HEADQUARTERS IN MURRAY HILL NJ MR KAVNER SAID ATM REFERS TO ASYNCHRONOUS TRANSFER MODE WHICH IS THE LATEST GENERATION OF A COMPLEX COMPUTERIZED SWITCH THAT HANDLES HUGE VOLUMES OF DIGITAL COMMUNICATIONS TRAFFIC TIME WARNER'S CABLE BUSINESS DECLINED TO COMMENT ON THE TALKS WITH AT&T WE'RE HAVING DISCUSSIONS WITH MANY PEOPLE ALL OF THE TIME ON MANY ISSUES A SPOKESWOMAN SAID VIACOM OFFICIALS COULDN'T BE REACHED FOR COMMENT BY DEMONSTRATING THE FEASIBILITY OF THE NATIONAL INTERACTIVE SERVICE AT&T HOPES TO SELL THE CABLE COMPANIES ON ITS VISION FOR TYING EVERYBODY INTO ONE NETWORK NOT UNLIKE THE WAY THE BELL SYSTEM COMMUNICATES VIA COMMON STANDARDS TODAY AT&T'S INVOLVEMENT COULD OCCUR ON SEVERAL LEVELS IT COULD SELL THE CABLE COMPANIES SWITCHING AND TRANSMISSION EQUIPMENT AND COMPUTER VIDEO SERVERS TO OFFER THESE SERVICES OR AT&T COULD BECOME A NETWORK SERVICE PARTNER WITH THE CABLE COMPANY HANDLING SWITCHING AND LONGHAUL TRANSMISSION AS WELL AS VIDEOONDEMAND DELIVERY AT&T BRINGS ANOTHER ASSET NETWORK RELIABILITY WHICH THE CABLE COMPANIES NOTORIOUSLY LACK AS A NETWORK SERVICE PARTNER AT&T IS PROPOSING TO THE CABLE COMPANIES THAT THEY TAP INTO AT&T'S VAST LONGDISTANCE NETWORK AT&T'S MASSIVE SWITCHES COULD TAKE OVER THE SWITCHING FUNCTIONS THUS THE CABLE NETWORKS COULD QUICKLY TURN THEIR SERVICES INTO A TWOWAY INTERACTIVE SYSTEM FROM TODAY'S ONEWAY PROGRAM DELIVERY SETUP AT&T ALSO IS PROPOSING THAT THE CABLE COMPANIES USE AT&T COMPUTERIZED ATM VIDEO SERVERS INSTALLED IN ITS NETWORK FACILITIES TO DELIVER PROGRAMMING ON DEMAND SUCH AS MOVIES AND OTHER INTERACTIVE SERVICES THE CABLE COMPANIES COULD EITHER INSTALL THIS EQUIPMENT IN THEIR NETWORKS OR TAP INTO AT&T'S OWN VIDEO SERVERS MR KAVNER SAID 9308270051 930827 WHAT'S NEWS BUSINESS AND FINANCE NATIONAL MEDICAL'S FACILITIES WERE RAIDED BY HUNDREDS OF FBI AND OTHER FEDERAL AGENTS IN A BROAD INVESTIGATION OF POSSIBLE CRIMINAL MISCONDUCT BY THE HOSPITAL OPERATOR THE CASE IS THE LATEST SIGN OF THE GOVERNMENT'S HEIGHTENED INTEREST IN FRAUD AND ABUSE IN HEALTHCARE BUSINESSES SEVERAL MEDICAL LAB COMPANIES ARE GETTING SUBPOENAS FROM OFFICIALS INVESTIGATING POSSIBLE IMPROPRIETIES IN CLAIMS FOR FEDERAL REIMBURSEMENT AT&T IS TALKING WITH THE NATION'S BIGGEST CABLE TELEVISION COMPANIES ABOUT LINKING THEIR CUSTOMERS INTO ONE BIG INTERACTIVE MULTIMEDIA NETWORK AT&T'S MULTIMEDIA CHIEF SAID THE LINK WOULD ALLOW CUSTOMERS ON DIFFERENT CABLE SYSTEMS TO PHONE EACH OTHER VIA CABLE LINES AND SEND MESSAGES AT&T PLANS TO MOVE AGGRESSIVELY TO STAKE OUT ITS WIRELESS TURF BOTH IN THE US AND OVERSEAS AFTER IT ACQUIRES MCCAW CELLULAR COMMUNICATIONS GERMANY'S CENTRAL BANK LEFT ITS KEY INTEREST RATES UNCHANGED CONFOUNDING THE EXPECTATIONS OF FINANCIAL MARKETS THE DECISION THREATENS TO PROLONG EUROPE'S LONG AND DEEP RECESSION BOND PRICES ROSE WHILE STOCKS WERE MIXED THE PRICE OF THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED ONE POINT ITS YIELD FELL TO 608 A 16YEAR LOW THE DOW INDUSTRIALS SLIPPED BUT THE S&P 500 INCHED UP TO A RECORD GERMAN PROSECUTORS SEARCHED VW'S OFFICES AND THE HOMES OF SOME EMPLOYEES LOOKING FOR EVIDENCE INVOLVING GM'S ACCUSATION THAT ITS FORMER PURCHASING CHIEF STOLE DOCUMENTS WHEN HE JUMPED TO THE GERMAN FIRM VW REPORTED A FIRSTHALF LOSS DOZENS OF CABLE SYSTEMS ARE URGING LOCAL GOVERNMENT OFFICIALS TO FORGO EXERCISING THEIR AUTHORITY UNDER THE NEW CABLE RATE REGULATION LAW GM DEVISED CRASH TESTS AIMED AT PROVING ITS FUEL TANKS WITHSTAND SOME COLLISIONS BETTER THAN FORD'S IN AN EFFORT TO UNDERMINE THE GOVERNMENT'S CASE FOR RECALLING OLDER GM PICKUP TRUCKS GM SAID IT WAS TRYING TO POINT OUT THE DEFICIENCIES OF CRASH TESTING EGGHEAD'S CHAIRMAN RESIGNED AND THE COMPANY POSTED A LOSS OF 2 MILLION FOR THE LATEST QUARTER AS THE COMPUTERSOFTWARE RETAILER REELS FROM STIFF NEW COMPETITION AND A PRICING WAR TURNER BROADCASTING SYSTEM IS CLOSE TO SIGNING AGREEMENTS WITH AT LEAST TWO MAJOR STUDIOS TO ADD ABOUT 1500 FILMS TO ITS GROWING LIBRARY THE CHICAGO STOCK EXCHANGE AND THE SEC ARE INVESTIGATING A SECURITIES FIRM FOR SHORTSELLING MORE SHARES THAN ACTUALLY EXISTED OF STEEL GIANT LTV BEFORE IT LEFT CHAPTER 11 TIME WARNER'S WARNER BROS STUDIO EXPECTS TO DECIDE IN ABOUT TWO MONTHS WHETHER TO LAUNCH A FIFTH TV NETWORK JOINING A NUMBER OF INDUSTRY PLAYERS WEIGHING A SIMILAR MOVE VOLVO'S PRETAX PROFIT JUMPED IN THE LATEST QUARTER RESULTS THAT SHOULD HELP DISPEL ANY REMAINING OBJECTIONS TO VOLVO'S MERGER WITH RENAULT BONDS LEHMAN BROTHERS TREASURY INDEX 557268 UP 4148 COMMODITIES OIL 1836 A BARREL UP FOUR CENTS DOW JONES FUTURES INDEX 12654 OFF 016 SPOT INDEX 12255 OFF 043 DOLLAR 10435 YEN OFF 060 16675 MARKS OFF 00173 9308270050 930827 ECONOMY GERMANY OPTS NOT TO REDUCE INTEREST RATES DECISION COULD PROLONG RECESSION IN EUROPE MARKETS MOSTLY CALM BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON CONFOUNDING THE EXPECTATIONS OF FINANCIAL MARKETS GERMANY'S CENTRAL BANK LEFT ITS KEY INTEREST RATES UNCHANGED THE DECISION THREATENS TO PROLONG EUROPE'S LONG AND DEEP RECESSION ECONOMISTS SAID THAT THE MORE SLOWLY GERMANY REDUCES INTEREST RATES THE LONGER IT WILL BE BEFORE GERMAN ECONOMIC RECOVERY BEGINS AND BECAUSE GERMANY IS EUROPE'S LARGEST ECONOMY THAT SLUGGISHNESS WILL WEIGH HEAVILY ON ALL THE CONTINENT'S OTHER ECONOMIES IT MAY BE LATE 1994 OR EVEN 1995 BEFORE WE CAN TALK ABOUT GENUINE RECOVERY IN WESTERN GERMANY SAID GEORGE MAGNUS CHIEF INTERNATIONAL FIXEDINCOME ECONOMIST AT SG WARBURG & CO IN LONDON EUROPEAN STOCK AND BOND MARKETS HAD RALLIED IN RECENT DAYS ON TRADERS' BELIEF THAT THE BUNDESBANK THE GERMAN CENTRAL BANK WAS ABOUT TO LOWER ITS DISCOUNT RATE CURRENTLY 675 OR ITS LOMBARD RATE NOW 775 AT A MEETING YESTERDAY IT WAS THE FIRST GATHERING OF THE BUNDESBANK'S DECISIONMAKING CENTRAL COUNCIL SINCE EUROPEAN FINANCE MINISTERS AND CENTRAL BANKERS DECIDED TO WIDEN THE TRADING RANGES OF EUROPE'S EXCHANGE RATE MECHANISM EARLY THIS MONTH THE NEW STRUCTURE ALLOWS MOST CURRENCIES IN THE NINECURRENCY JOINT FLOAT TO FLUCTUATE BY 15 UP OR DOWN AGAINST A CENTRAL RATE PREVIOUSLY MOST CURRENCIES WERE RESTRICTED TO BANDS OF ONLY PLUS OR MINUS 225 DESPITE WIDESPREAD EXPECTATIONS THAT THE BUNDESBANK WOULD LOWER GERMAN INTEREST RATES IF ONLY BY A SMALL AMOUNT THE REACTION IN FINANCIAL MARKETS TO ITS NONACTION WAS MORE MUTED THAN MANY TRADERS HAD ANTICIPATED THE DOLLAR AND OTHER EUROPEAN CURRENCIES FELL AGAINST THE MARK BUT NOT VERY FAR NOTING THAT GERMAN MONEY SUPPLY GROWTH A KEY INDICATOR OF FUTURE INFLATION WAS RUNNING AT 75 WELL ABOVE THE BUNDESBANK'S 45TO65 TARGET RANGE AND THAT GERMAN INFLATION REMAINS ABOVE 4 JEANMICHEL CHARPIN CHIEF ECONOMIST AT BANQUE NATIONALE DE PARIS SAID GERMANY'S CENTRAL BANK HAD LITTLE REASON TO CUT INTEREST RATES IF THEY DIDN'T CUT INTEREST RATES FOUR WEEKS AGO WHICH NEARLY PRECIPITATED THE BREAKUP OF THE ERM IT WOULD BE DIFFICULT FOR THEM TO JUSTIFY A CUT NOW WITHOUT THAT MUCH HAVING CHANGED ADDED ULRICH BECKMANN AN ECONOMIST AT DEUTSCHE BANK AG IN FRANKFURT IT CONFIRMS THAT GERMANY IS WILLING TO USE ITS NEWFOUND FREEDOM OF WIDER EXCHANGERATE BANDS IN EUROPE TO BRING DOMESTIC INFLATIONARY PRESSURES UNDER CONTROL SAID JOACHIM FELS AN ECONOMIST AT GOLDMAN SACHS INTERNATIONAL IN FRANKFURT OTHER EUROPEAN GOVERNMENTS WILL HAVE TO REALIZE NOW THERE IS LITTLE HELP TO BE EXPECTED FROM THE BUNDESBANK THEY WILL HAVE TO GO IT ON THEIR OWN AND CUT LOOSE FROM THE BUNDESBANK AND THAT'S A PAINFUL PROCESS ANALYSTS ARE BETTING THAT FRANCE DENMARK BELGIUM SPAIN AND PORTUGAL WILL TRY TO KEEP CUTTING INTEREST RATES IN AN EFFORT TO STIMULATE THEIR OWN ECONOMIES BUT THE PROSPECT OF CONTINUED HIGH GERMAN RATES WILL RETARD THE PROCESS THEY SAID EUROPEAN COUNTRIES WILL REDUCE RATES VERY CAREFULLY TO KEEP THEIR CURRENCIES FROM FALLING OUT OF BED SAID MR BECKMANN BUT HE ADDED I DON'T FORESEE THAT THEY CAN LOWER THEIR RATES SUBSTANTIALLY BELOW GERMANY'S IN GENERAL WHEN A COUNTRY CUTS INTEREST RATES ITS CURRENCY WEAKENS BECAUSE INVESTORS SEEK OUT INVESTMENTS DENOMINATED IN OTHER CURRENCIES WITH HIGHER YIELDS FOR AMERICANS THE GERMAN CENTRAL BANK'S DECISION COULD MEAN A SOMEWHAT SLOWER US ECONOMIC RECOVERY THE LONGER THAT EUROPE TAKES TO RECOVER THE MORE VULNERABLE US EXPORTERS WILL BE SAID MR MAGNUS OF SG WARBURG STILL MOST ANALYSTS EXPECT GERMANY'S DIRE ECONOMIC SITUATION EVENTUALLY TO FORCE THE BUNDESBANK TO EASE ITS TIGHT MONETARY POLICY GERMAN ECONOMIC GROWTH IS EXPECTED TO FALL ABOUT 2 THIS YEAR UNEMPLOYMENT STANDS AT MORE THAN 8 INDUSTRIAL PRODUCTION IS DOWN 87 FROM A YEAR AGO AND DURING THE PAST THREE MONTHS RETAIL SALES HAVE PLUMMETED AT AN ANNUAL RATE OF 7 IN ADDITION THE COMBINATION OF A STRONG MARK HIGH WAGES INFLATION AND HIGH TAXES IS MAKING GERMAN INDUSTRY INCREASINGLY LESS COMPETITIVE ON WORLD MARKETS DEUTSCHE BANK'S MR BECKMANN EXPECTS A MODERATE CUT IN KEY RATES IN SEPTEMBER KERMIT L SCHOENHOLTZ CHIEF ECONOMIST AT SALOMON BROTHERS INTERNATIONAL IN LONDON SEES SHORTTERM GERMAN INTEREST RATES TUMBLING TO 45 IN 1994 FROM ALMOST 7 CURRENTLY AND PUTTING A POSITIVE SPIN ON BAD NEWS MR MAGNUS SAID THAT THE BUNDESBANK'S RECALCITRANCE IS CEMENTING A MORE FAVORABLE OUTLOOK FOR GERMAN INFLATION STARTING AROUND OCTOBER AND NOVEMBER OF THIS YEAR OUT TO 1994 HE SEES YIELDS ON GERMAN 10YEAR BONDS FALLING BELOW 6 FOR THE FIRST TIME SINCE 1987 FROM JUST UNDER 63 NOW HOW LONG THE REST OF EUROPE CAN WAIT FOR LOWER GERMAN RATES IS ANOTHER QUESTION THERE'S AN INCONSISTENCY BETWEEN WHAT THE GERMANS ARE PREPARED TO LIVE WITH AND WHAT THE FRENCH CANNOT EVENTUALLY TOLERATE SAID MR MAGNUS INDEED EUROPE HAS PAID A STIFF PRICE FOR STICKING WITH THE BUNDESBANK'S HARSH ANTIINFLATION POLICIES IN AGGREGATE THE ECONOMIES OF THE EUROPEAN COMMUNITY'S 12 MEMBER NATIONS ARE FORECAST TO DECLINE 04 THIS YEAR ACCORDING TO THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT THE OECD ALSO PROJECTS THAT 127 MILLION PEOPLE OR 116 OF THE EC'S WORK FORCE WILL BE UNEMPLOYED AT YEAREND FRENCH UNEMPLOYMENT IS ALREADY AT THAT LEVEL AND THE OECD ESTIMATES THAT BY THE END OF THE YEAR SPAIN'S WILL STAND AT 225 IRELAND'S 195 DENMARK'S 124 AND BELGIUM'S 119 MANY INVESTORS EXPECTED THESE COUNTRIES TO QUICKLY TAKE ADVANTAGE OF THE WIDER ERM BANDS AND CUT INTEREST RATES SO FAR FRANCE DENMARK AND SPAIN HAVE EASED RATES SOMEWHAT BUT NOT DRASTICALLY IN FRANCE'S CASE THE GOVERNMENT WOULD LIKE TO LOWER RATES AND HAVE A STRONG FRANC AT THE SAME TIME ANALYSTS SAID THEY NOTED THAT IT'S DIFFICULT TO DO BOTH THE FRENCH GOVERNMENT IS LIKE A RABBIT FROZEN IN THE HEADLIGHTS OF AN ONCOMING CAR SAID MR MAGNUS THERE IS NO CHANCE OF AN EARLY RETURN TO THE OLD ERM BANDS BUT THEY STILL REFUSE TO TAKE ADVANTAGE OF THE WIDER BANDS BY CUTTING RATES SHARPLY 9308270049 930827 BUSINESS BRIEF PHILIP MORRIS COS GENERAL FOODS USA MULLS SALE OF A DESSERT BUSINESS GENERAL FOODS USA A UNIT OF PHILIP MORRIS COS' KRAFT GENERAL FOODS UNIT SAID IT IS CONSIDERING THE SALE OF ITS FROZEN DESSERT BUSINESS THE COMPANY SAID IT RECENTLY RECEIVED UNSOLICITED EXPRESSIONS OF INTEREST IN THE BUSINESS WHICH INCLUDES THE BREYERS AND SEALTEST ICE CREAM LINES AND THE LIGHT N' LIVELY ICE MILK LINE AMONG OTHERS A COMPANY SPOKESWOMAN SAID REVENUE FOR THE BUSINESS IS ABOUT 500 MILLION OR ABOUT 6 OF GENERAL FOODS USA'S ANNUAL REVENUE THE POTENTIAL SALE WOULD COVER ONLY FROZEN DESSERTS AND NOT ANY OF THE COMPANY'S CULTURED OR FROZEN TOPPING PRODUCTS GENERAL FOODS SAID THE COMPANY DIDN'T DISCLOSE THE NUMBER OR NAMES OF INTERESTED BUYERS AND SAID IT IS EXPLORING THE POTENTIAL SALE WITH A LIMITED NUMBER OF THEM PHILIP MORRIS IS BASED IN NEW YORK 9308270048 930827 GM IN ATTEMPT TO UNDERMINE US CASE AGAINST PICKUPS RUNS OWN CRASH TESTS BY DANIEL PEARL AND DOUGLAS LAVIN STAFF REPORTERS OF THE WALL STREET JOURNAL GENERAL MOTORS CORP TRYING TO UNDERMINE THE GOVERNMENT'S CASE FOR RECALLING OLDER GM PICKUP TRUCKS RAN CRASH TESTS AIMED AT PROVING THAT ITS FUEL TANKS WITHSTAND SOME COLLISIONS BETTER THAN FORD MOTOR CO'S THE TESTS DELIBERATELY TARGETED PARTS OF THE PICKUP TRUCK THAT ARE MORE VULNERABLE FOR FORD THAN THEY ARE FOR GM'S MODELS WHOSE FUEL TANKS WERE MOUNTED ON THE SIDE GM SAID IT WAS TRYING TO POINT OUT THE DEFICIENCIES OF CRASH TESTING NOT OF FORD PICKUPS BUT FORD SAID THE TESTS WERE UNREALISTIC AND UNSUCCESSFULLY ASKED THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION TO SUPPRESS A MISLEADING AND UNFAIR CRASHTEST VIDEO IN FILINGS DISCLOSED YESTERDAY GM ALSO STEPPED UP ITS CLAIM THAT RECKLESS DRIVING ACCOUNTS IN PART FOR WHY ITS 19731987 MODEL YEAR PICKUPS CAUGHT FIRE 24 TIMES AS OFTEN AS FORD'S IN FATAL SIDEIMPACT CRASHES ACCORDING TO A DATABASE STUDIED BY THE AGENCY AND GM PRODUCED POLICE AND CORONER REPORTS THAT CHALLENGE THE DATABASE'S INCLUSION OF SOME GM TRUCK ACCIDENTS AS FIRERELATED FATALITIES FEDERAL STATISTICS CITE 168 SUCH FATALITIES IN SIDEIMPACT ACCIDENTS INVOLVING THE GM TRUCKS IN QUESTION BUT GM CITED 57 CASES IN WHICH TRAUMA NOT FIRE CAUSED THE DEATH IN ONE ACCIDENT FOR INSTANCE GM SAID AN AUTOPSY SHOWED THE IMPACT WAS STRONG ENOUGH TO PUSH THE TRUCK 184 FEET AND EXPEL THE DRIVER ALSO GM SAID IT FOUND SIX CASES WHERE THE FIRE STARTED IN THE ENGINE COMPARTMENT INSTEAD OF THE FUEL TANK AND FIVE IN WHICH THE TRUCK DIDN'T IGNITE AT ALL THE GM STUDIES SUBMITTED AUG 10 WERE PART OF A RESPONSE TO THE SAFETY AGENCY'S APRIL REQUEST THAT GM RECALL THE TRUCKS AT ISSUE THE AGENCY HAS CLAIMED THE TRUCKS WITH THEIR SIDEMOUNTED FUEL TANKS HAVE A TENDENCY TO IGNITE IN CERTAIN COLLISIONS GM WHICH HAS SIX MILLION OF THE TRUCKS ON THE ROAD LAST MONTH AGREED TO SETTLE DOZENS OF CLASSACTION CASES INVOLVING THE PICKUPS BUT THE COMPANY'S LATEST FILING WHICH INCLUDES SEVERAL HUNDRED PAGES OF EXHIBITS SEEMS TO INDICATE THAT GM IS PREPARING FOR A LENGTHY COURT BATTLE IF THE AGENCY TRIES TO FORCE A RECALL IN PARTICULAR GM IS LIKELY TO CHALLENGE THE VALIDITY OF THE GOVERNMENT'S CRASH TESTS GM SAYS THE POINT OF IMPACT IN THOSE TESTS WAS THE FRONT EDGE OF THE FUEL TANK IN ITS OWN TESTS RUN BY A MENLO PARK CALIF COMPANY CALLED FAILURE ANALYSIS ASSOCIATES GM CRASHED GM AND FORD TRUCKS INTO POLES AND OTHER VEHICLES USING A POINT OF IMPACT AT THE REAR OF THE TRUCK TARGETING FORD'S FUEL TANKS IN THE CRASHES AT SPEEDS OF AS MUCH AS 50 MILES AN HOUR THE GM PICKUPS HAD LITTLE OR NO FUEL TANK LEAKAGE BUT THE FORD TRUCKS LEAKED SUBSTANTIALLY GM SAID FORD WHICH GOT A COPY OF THE CRASHTEST VIDEOTAPE LAST WEEK FROM GM ASKED THE SAFETY AGENCY TUESDAY NOT TO RELEASE THE VIDEO BEFORE CONDUCTING ITS OWN ANALYSIS IN A LETTER TO THE AGENCY FORD SAID VIEWERS MIGHT NOT UNDERSTAND THE POINT OF THE TESTS IF TELEVISION PRODUCERS GOT THEIR HANDS ON THE VIDEOTAPE ESPECIALLY SINCE GM INSERTED CLOSEUP GRATUITOUS SCENES OF GUSHING FUEL LIKE FLUID BUT THE AGENCY SAID IN A LETTER TO FORD THAT IT WOULD TAKE CAREFUL MEASURES TO CAUTION AGAINST MISUSE OF THIS FILM FOOTAGE IN A STATEMENT GM SAID ITS FILING HAS SHOWN THERE IS NO REASONABLE BASIS FOR CONCLUDING THERE IS A SAFETYRELATED DEFECT IN ITS TRUCKS AND THAT THERE IS SIMPLY NO BASIS FOR THEIR RECALL AGENCY OFFICIALS COULDN'T BE REACHED FOR COMMENT LAST NIGHT CLARENCE DITLOW HEAD OF THE CENTER OF AUTO SAFETY IN WASHINGTON AND A PERSISTENT CRITIC OF THE GM TRUCKS SAID GM IS ONCE AGAIN TRYING TO MISLEAD THE PUBLIC HE SAID ANY ERRORS IN FEDERAL ACCIDENT DATA WOULD TEND TO BE CONSISTENT ACROSS MAKES OF CARS AS FOR THE CRASH TESTS HE SAID GM'S OWN INTERNAL MEMORANDA PROVE THE TRUCKS WOULD HAVE BEEN SAFER HAD THE TANKS BEEN MOVED INDEED GM DISCLOSED IN ITS FILING THAT FEDERAL ACCIDENT DATA SHOW NO INCIDENTS OF FATAL SIDE COLLISIONS WITH FIRES IN THE SIX MODEL YEARS STARTING WITH 1984 WHEN GM INSTALLED A CAGE TO PROTECT THE SIDEMOUNTED FUEL TANK GM SUBSEQUENTLY ABANDONED THE SIDESADDLE DESIGN THE AUTO MAKER SHARPENED ITS CLAIM THAT DEMOGRAPHICS EXPLAIN MUCH OF THE DIFFERENCE IN FIRE RATES BETWEEN GM AND FORD PICKUPS GM SAID STATE DATA REVEALED THAT GM'S FATALITIES IN SIDEIMPACT COLLISIONS WERE MORE LIKELY TO INVOLVE YOUNG DRIVERS THAN FORD'S GM SAID THE TENDENCY OF SOME VEHICLES TO ATTRACT DRIVERS WITH AGGRESSIVE DRIVING CHARACTERISTICS SUCH AS DRINKING AND SPEEDING HELP EXPLAIN WHY THE COMPANY WAS ABLE TO FIND PAIRS OF PRACTICALLY IDENTICAL VEHICLES SUCH AS THE 19801982 FORD THUNDERBIRDS AND MERCURY COUGARS WITH WIDELY DIFFERENT FIREINCIDENT RATES IN FATAL COLLISIONS DIFFERENCES IN DRIVER BEHAVIOR HAVE HELPED PERSUADE THE GOVERNMENT TO DROP SOME DEFECT INVESTIGATIONS IN THE PAST BUT IT'S ALSO A TOUCHY ARGUMENT FOR GM WHICH CLAIMED FOR YEARS THAT THE REASON ITS CORVAIR SPORTS CARS TIPPED OVER WAS BECAUSE YOUNGSTERS DROVE IT TOO AGGRESSIVELY GM'S REFUSAL TO ACKNOWLEDGE THE CARS MIGHT BE DEFECTIVE HELPED GIVE RISE TO RALPH NADER AND THE TRAFFIC SAFETY AGENCY ITSELF IN THE 1960S GM IS GRASPING AT STRAWS WHEN IT IS BLAMING ITS OWN CUSTOMERS FOR FATALITIES IN ITS TRUCKS SAID MR DITLOW 9308270047 930827 MARKETING & MEDIA EW SCRIPPS CO HOME & GARDEN NETWORK TO BE LAUNCHED NEXT YEAR EW SCRIPPS CO CINCINNATI SAID IT WILL LAUNCH THE HOME & GARDEN TELEVISION NETWORK A CABLE OPERATION FEATURING HOME REPAIR REMODELING GARDENING DECORATING AND HOME ELECTRONICS IN THE FALL OF 1994 HGTV A 24HOUR PROGRAMMING NETWORK WILL BE OPERATED THROUGH EW SCRIPPS SUBSIDIARY SCRIPPS HOWARD BROADCASTING CO CONTINENTAL CABLEVISION INC OF BOSTON THE NATION'S THIRDLARGEST CABLE OPERATOR SIGNED A SIXYEAR AGREEMENT TO CARRY THE NETWORK IN EXCHANGE FOR PERMISSION TO CARRY THE SIGNALS OF LOCAL TELEVISION STATIONS AFFILIATED WITH HGTV SCRIPPS SAID IT IS DISCUSSING HGTV CARRIAGE AGREEMENTS WITH OTHER CABLE SYSTEMS THAT CARRY HGTV BROADCAST AFFILIATES AND IS EXPANDING THE HGTV AFFILIATE GROUP TO INCLUDE A BROADCAST STATION IN EACH OF THE NATION'S TELEVISION MARKETS 9308270046 930827 WHAT'S NEWS WORLDWIDE DESPERATE MUSLIMS PREVENTED A UN CONVOY FROM LEAVING A BOSNIAN CITY FRANTIC WOMEN AND CHILDREN CUT OFF FOR TWO MONTHS AND UNDER ATTACK BY CROAT FORCES WELCOMED THE AID CONVOY FOR THE PROTECTION IT MIGHT OFFER FROM CROAT SHELLING THE TERRIFIED EMACIATED MUSLIM CIVILIANS BLOCKED THE 19TRUCK CONVOY FROM LEAVING THE BESIEGED MUSLIM QUARTER OF MOSTAR AFTER IT DELIVERED MEDICAL SUPPLIES POWDERED MILK AND FOOD AS LONG AS YOU ARE HERE WE ARE SAFE ONE WOMAN TOLD THE UN MILITARY OBSERVERS SOME CARRIED SIGNS READING WHY DID THE WORLD FORGET US BOSNIA'S PARLIAMENT WAS TO MEET TODAY TO CONSIDER A PEACE PLAN GIVING THE MUSLIMLED GOVERNMENT 31 OF BOSNIA PROMINENT POLITICIANS WHO ARE LOYAL TO THE GOVERNMENT OPPOSE THE PLAN PROSPECTS IMPROVED FOR ISRAELI APPROVAL OF A PALESTINIAN AUTONOMY PLAN ISRAEL'S FOREIGN MINISTER SAID THAT FOR THE FIRST TIME HE BELIEVES THERE IS A PLAN UNDER CONSIDERATION THAT IS ACCEPTABLE TO BOTH ISRAELIS AND PALESTINIANS PERES INDICATED HIS GOVERNMENT WAS PREPARED TO TURN OVER THE GAZA STRIP AND THE WEST BANK TOWN OF JERICHO TO THE PALESTINIANS FOR SELFRULE AND TO WITHDRAW ISRAELI TROOPS A PLO AIDE SAID THE PROVISIONAL ACCORD WAS REACHED IN SECRET HIGHLEVEL CONTACTS THE PLAN WILL BE DISCUSSED AT MIDEAST TALKS RESUMING TUESDAY PLO CHIEF ARAFAT WAS FACING UNPRECEDENTED CRITICISM AT A MEETING OF HIS GROUP'S EXECUTIVE COMMITTEE HE IS ACCUSED BY SOME MEMBERS OF MAKING TOO MANY CONCESSIONS TO ISRAEL A MILITANT MUSLIM CLERIC PLEADED NOT GUILTY TO CHARGES THAT HE WAS THE GUIDING FORCE BEHIND THE BOMBING OF THE WORLD TRADE CENTER AND ALLEGED PLOTS TO BLOW UP OTHER NEW YORK LANDMARKS THE CLERIC SHEIK OMAR ABDELRAHMAN AND 14 CODEFENDANTS ENTERED THE SAME PLEA DURING A HEARING AT FEDERAL COURT IN NEW YORK THE CLINTON ADMINISTRATION MOVED TO RELAX COLD WAR RESTRICTIONS ON THE SALE OF HIGHSPEED COMPUTERS TO SUCH COUNTRIES AS RUSSIA AND CHINA BUT THE US HIGHTECHNOLOGY INDUSTRY SAID THE ADMINISTRATION ISN'T DOING ENOUGH TO FULFILL A CAMPAIGN PROMISE TO EASE RESTRICTIONS ON TECHNOLOGY EXPORTS CHINA'S FOREIGN MINISTER COMPLAINED THAT NEW US SANCTIONS ON HIGHTECH EXPORTS ARE UNFAIR AND WARNED THAT BEIJING MAY RETHINK ITS SUPPORT OF MISSILEEXPORT CONTROLS HE SAID THE DECISION TO PUNISH CHINA FOR ALLEGED MISSILETECHNOLOGY SALES TO PAKISTAN WILL HARM US FIRMS SIXTYFIVE US ARMY RANGERS ARRIVED IN SOMALIA'S CAPITAL AND WERE CONFRONTED BY ANGRY CROWDS WHO PUT UP BURNING BARRICADES ABC AND CBS TELEVISION NETWORKS SAID MEMBERS OF THE COUNTERTERRORIST DELTA TEAM WERE AMONG SOME 400 ELITE US SOLDIERS DUE IN MOGADISHU A MAJORITY OF AMERICANS AGREE THAT MINORITIES HAVE A PROBLEM IN GETTING EQUAL JUSTICE ACCORDING TO AN ASSOCIATED PRESS POLL MARKING THE 30TH ANNIVERSARY OF A LANDMARK CIVIL RIGHTS MARCH ON WASHINGTON ABOUT 60 OF THOSE POLLED SAY THERE HAS BEEN SUBSTANTIAL PROGRESS TOWARD EQUALITY BUT 30 SEE NOT VERY MUCH PROGRESS NIGERIA'S GEN BABANGIDA STEPPED DOWN AS PRESIDENT AND BEGAN INSTALLING A WIDELY OPPOSED GOVERNMENT HEADED BY BUSINESSMAN ERNEST SHONEKAN BABANGIDA WHO TOOK POWER IN A 1985 COUP HAD REPEATEDLY BROKEN PROMISES TO RESIGN THE 13MEMBER GOVERNMENT DIDN'T INCLUDE MOSHOOD ABIOLA WHO WON A JUNE 12 PRESIDENTIAL VOTE A WEEKLONG HOSTAGE CRISIS ENDED PEACEFULLY IN NICARAGUA WITH MEMBERS OF TWO RIVAL REBEL GROUPS HEADING TOWARD THEIR RESPECTIVE HIDEOUTS AFTER RELEASING ALL OF THEIR REMAINING CAPTIVES PRESIDENT CHAMORRO HAD AGREED TO ALLOW THE ABDUCTORS TO GO FREE A TOTAL OF 70 HOSTAGES HAD BEEN HELD BY THE GUERRILLAS INCLUDING VICE PRESIDENT GODOY FLORIDA IS BECOMING THE FIRST STATE IN THE NATION TO LIMIT THE AMOUNT OF TOXIC MERCURY EMITTED BY SMOKESTACKS OF PUBLIC TRASH INCINERATORS A STATE PANEL VOTED WEDNESDAY TO REQUIRE THE INCINERATORS TO REDUCE BY 80 THE AMOUNT OF MERCURY EMISSIONS BY MID1998 THE EPA EXPECTS TO HAVE PROPOSED NATIONAL RULES READY NEXT YEAR UN CHIEF BOUTROSGHALI RECOMMENDED THAT THE SECURITY COUNCIL SUSPEND AN OIL EMBARGO AND OTHER SANCTIONS IMPOSED ON HAITI TWO MONTHS AGO THE COUNCIL WAS EXPECTED TO VOTE TODAY ON THE MATTER MEANWHILE HAITI'S NEW PRIME MINISTER WAS EXPECTED TO BE SWORN IN TODAY IN WASHINGTON BY EXILED PRESIDENT ARISTIDE 9308270045 930827 BUSINESS BRIEF WESBANCO INC PACT IS REACHED TO ACQUIRE ANOTHER WEST VIRGINIA BANK WESBANCO INC SEEKING TO EXPAND ITS PRESENCE IN CENTRAL WEST VIRGINIA AGREED TO ACQUIRE FIRST FIDELITY BANCORP INC IN A STOCK SWAP VALUED AT 70 MILLION WESBANCO BASED IN WHEELING WILL EXCHANGE 09 SHARE OF ITS COMMON FOR EACH SHARE OF FIRST FIDELITY'S COMMON WESBANCO HAS 104 BILLION IN ASSETS WHILE FIRST FIDELITY BASED IN FAIRMONT WVA HAS ASSETS OF 308 MILLION IN OVERTHECOUNTER TRADING FIRST FIDELITY JUMPED 350 OR 15 TO 2675 WESBANCO CLOSED AT 3350 DOWN 50 CENTS WEST VIRGINIA HAS SEEN CONSIDERABLE MERGER ACTIVITY DURING THE PAST YEAR AS SOME INSTATE BANKS HAVE MERGED WITH ONE ANOTHER AND OUTOFSTATE BANKS HAVE INCREASINGLY SEEN WEST VIRGINIA BANKS AS DESIRABLE ACQUISITION TARGETS THE BIGGEST OUTOFSTATE OWNERS ARE BANC ONE CORP AND HUNTINGTON BANCSHARES INC BOTH BASED IN COLUMBUS OHIO AS PART OF THE WESBANCOFIRST FIDELITY MERGER EDWARD M GEORGE WILL REMAIN WESBANCO'S PRESIDENT AND CHIEF EXECUTIVE OFFICER AND JAMES C GARDILL WILL REMAIN CHAIRMAN FIRST FIDELITY CHAIRMAN ROBERT H MARTIN WILL BECOME WESBANCO'S VICE CHAIRMAN AND FIRST FIDELITY PRESIDENT PATRICK L SCHULTE WILL BE NAMED WESBANCO EXECUTIVE VICE PRESIDENT EFFECTIVE UPON COMPLETION OF THE MERGER 9308270044 930827 CHICAGO BROKER FACES INQUIRY OVER LTV SHORT SALES BY ALEXANDRA PEERS AND JEFFREY TAYLOR STAFF REPORTERS OF THE WALL STREET JOURNAL IT STARTED IN A BARROOM AND ENDED UP AS A MARKETMANIPULATION INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION AND THE CHICAGO STOCK EXCHANGE A HIGHWIRE TRADING STRATEGY DREAMED UP BY TWO CHICAGO MARKET MAKERS IN A BAR IN NOVEMBER HAS SPLINTERED THE DRINKING BUDDIES PROMPTED A CLASSACTION LAWSUIT CHARGING RACKETEERING AND MADE ABOUT 27 MILLION FOR ONE OF THE TWO STRATEGISTS AND FOR HIS FIRM THE SPECIALISTS ARE LEON A CHIP GREENBLATT OF THE TINY CHICAGO SECURITIES FIRM OF SCATTERED CORP AND DAVID SULLIVAN A PRINCIPAL IN SULLIVAN & LONG INCAND A GOVERNOR OF THE CHICAGO EXCHANGE BOTH MEN AND THEIR FIRMS REGULARLY TAKE SHORT POSITIONS IN STOCKS SHORT SELLERS BET ON A STOCK'S FALL BY BORROWING SHARES AND SELLING THEM BETTING THEY CAN REPLACE THEM LATER AT A LOWER PRICE THE CHICAGO STOCK EXCHANGE AND THE SEC ARE INVESTIGATING SCATTERED FOR SHORTSELLING MORE THAN 150 MILLION SHARES MORE SHARES THAN ACTUALLY EXISTED OF STEEL GIANT LTV CORP FROM MAY THROUGH JUNE WHEN LTV WAS IN BANKRUPTCY REORGANIZATION MR GREENBLATT ONE OF THREE PRINCIPALS AT SCATTERED SAID HE AND MR SULLIVAN WERE HAVING DRINKS AT A CHICAGO BAR IN NOVEMBER WHEN MR SULLIVAN DISCUSSED WAYS TO MAKE MONEY IN THE SHARES OF COMPANIES THAT WERE IN BANKRUPTCY REORGANIZATION SOON AFTERWARD MR GREENBLATT SAYS HE ADOPTED THAT VERY STRATEGY WITH LTV SHARES NOW HE SAYS HIS FIRM IS BEING INVESTIGATED BY REGULATORS FOR THE AUDACIOUS BUT COMPLETELY LEGIT TRADING PLOY FURTHER HE SAYS THE SUIT AND THE REGULATORY INVESTIGATIONS ARE ALL THE RESULT OF MR SULLIVAN'S PIQUE BECAUSE HE TRIED TO USE A SIMILAR STRATEGY BUT IT BACKFIRED ON HIM NOT SO SAYS MR SULLIVAN HE CONCEDES THAT LEON AND I HAD CONVERSATIONS WE HAD DISCUSSED DIFFERENT STRATEGIES HE'S A VERY BRIGHT GUY BUT IF I WAS THE MASTERMIND HOW COME HE'S THE ONE WHO MADE ALL THE MONEY SHORT SELLERS SAY THE STRATEGY USED BY SCATTERED IS COMMON THE DIFFERENCE HERE WAS NOT ONLY THE SCALE OF THE POSITION SCATTERED TOOK BUT THE FACT THAT SCATTERED UNLIKE SULLIVAN & LONG EXPLOITED A LOOPHOLE GIVEN TO MARKETMAKERS IN A STOCK TO ASSURE LIQUIDITY IN SHARES THE CHICAGO EXCHANGE ALLOWS MARKETMAKERS WHICH ARE RESPONSIBLE FOR KEEPING AN ORDERLY MARKET IN SPECIFIC STOCKS TO SELL SHARES SHORT AND NOT REPLACE THEM WITHIN THE FIVE DAYS NORMALLY REQUIRED OF ANYONE ELSE TRADING ON THE EXCHANGE THUS SCATTERED WAS ABLE TO KEEP SELLING AND SELLING EVENTUALLY SELLING MORE LTV SHARES THAN ACTUALLY EXISTED SCATTERED'S STRATEGY PAID OFF SO HANDSOMELY BECAUSE ALL OF LTV'S STOCK WAS CANCELED UNDER THE TERMS OF THE BANKRUPTCY REORGANIZATION THAT WAS FINALIZED JUNE 28 SUBSTANTIALLY LESS VALUABLE WARRANTS WERE ISSUED IN EXCHANGE FOR THE STOCK ENABLING SCATTERED TO COVER ITS SHORT POSITION CHEAPLY MEANWHILE IN LATE MAY AND EARLY JUNE MR SULLIVAN WAS ALSO SHORTING LTV STOCK BUT HE SAYS HE WAS RETURNING BORROWED SHARES WITHIN FIVE DAYS IN FACT FROM JUNE 1 THROUGH JUNE 16 HE CONTRACTED TO BUY 13 MILLION SHARES OF LTV FROM SCATTERED ACCORDING TO A LAWSUIT HE LATER FILED TO COVER THOSE SHORT POSITIONS BUT ON JUNE 23 WHEN MR GREENBLATT INFORMED HIM THAT SCATTERED WASN'T COVERING ITS SHORT POSITIONS AND CONTINUED TO SELL SHARES SULLIVAN REALIZING THE RISK OF A PRICE INCREASE WHICH COULD BANKRUPT IT WENT INTO THE MARKET TO BUY MORE SHARES OF OLD LTV FROM SOURCES OTHER THAN THE DEFENDANTS TO MEET ITS DELIVERY OBLIGATIONS ACCORDING TO THE SUIT MR SULLIVAN SAYS HIS FIRM INCURRED LOSSES IN EXCESS OF 50000 AS A RESULT MR SULLIVAN ADDS THAT HE ALSO WENT TO EXCHANGE OFFICIALS ABOUT SCATTERED BECAUSE I DIDN'T TRUST THEM MR GREENBLATT SAYS MR SULLIVAN SHOULDN'T HAVE BEEN TRADING ON INFORMATION ABOUT SCATTERED'S TRADING POSITION AND THAT THE MATTER HAS TURNED INTO SOAP OPERA MATERIAL ALL WE DID WAS ARBITRAGE ON JULY 7 SULLIVAN & LONG FILED A CLASSACTION SUIT AGAINST SCATTERED IN CHICAGO'S US DISTRICT COURT ALLEGING SECURITIES LAW VIOLATIONS FRAUD BREACH OF CONTRACT AND CIVIL VIOLATIONS OF THE FEDERAL RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS LAW OR RICO AS REPORTED IN THE NEW YORK TIMES THE SEC AND THE CHICAGO STOCK EXCHANGE ARE INVESTIGATING THE LTV TRADES THE CHICAGO STOCK EXCHANGE AS A SELFREGULATED ORGANIZATION MAY SOON FILE CHARGES ALLEGING THAT SCATTERED VIOLATED THE EXCHANGE'S OWN RULES THE EXCHANGE IS HOLDING ABOUT 11 MILLION IN TRADING PROFITS ON SCATTERED CORP'S LTV TRADES BUT EXPECTS TO RELEASE THOSE PROFITS WHEN THE TRADES CLEAR WE DON'T FEEL THE EXCHANGE IS THREATENED IN ANY WAY BY THIS SAID HOMER LIVINGSTON PRESIDENT AT CHIEF EXECUTIVE OFFICER OF THE CHICAGO EXCHANGE THROUGH OUR CLEARING ENTITY WE CLEAR FOR THEM SCATTERED THEY'RE ONE OF THE MANY HUNDREDS OF CUSTOMERS FOR WHOM WE CLEAR HE ADDED WE HAVE NO EXPOSURE MR SULLIVAN SAYS OF MR GREENBLATT IF HE GETS AWAY WITH IT I'LL BE PRETTY FLABBERGASTED 9308270043 930827 POLITICS & POLICY CRITICS OF PEROT'S NEW BOOK ON NAFTA CHARGE COAUTHORS TWIST OR OMIT SOME CRUCIAL FACTS BY ASRA Q NOMANI AND PAUL B CARROLL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON A STRANGE THING HAPPENS WHEN THE PRESIDENT ADOPTS A POSITION ON LEGISLATION ROSS PEROT SAYS IN HIS NEW BOOK ON THE NORTH AMERICAN FREE TRADE AGREEMENT FACTS SUDDENLY DON'T MATTER CRITICS ARE SUGGESTING THAT IS WHAT HAPPENS IN HIS BOOK SAVE YOUR JOB SAVE OUR COUNTRY WRITTEN WITH ECONOMIST PAT CHOATE IS A NOHOLDSBARRED ATTACK ON THE FREETRADE ACCORD THAT IN A NUMBER OF INSTANCES MISSTATES OR OMITS PERTINENT FACTS THAT DON'T FIT WITH THE PEROT THESIS WHETHER OR NOT THE BOOK STANDS UP TO CRITICAL ANALYSIS ITS ARGUMENTS ARE SURE TO RESONATE WITH MANY AMERICANS APPREHENSIVE ABOUT THE TRADE ACCORD'S IMPACT ON THE US ECONOMY THE KEY ISSUE OF COURSE IS THE DEGREE TO WHICH AMERICAN JOBS WILL OR WON'T BE LOST TO MEXICO THE CELEBRATED GIANT SUCKING SOUND MR PEROT TALKED ABOUT IN HIS 1992 PRESIDENTIAL CAMPAIGN FOR EXAMPLE THE BOOK ASSERTS THAT IN 1992 IN THE MIDDLE OF NEGOTIATIONS THE US SECRETARY OF LABOR TESTIFIED BEFORE CONGRESS THAT NAFTA WOULD COST 150000 AMERICAN JOBS THE BOOK ALSO CITES A MORE RECENT CONGRESSIONAL BUDGET OFFICE STUDY THAT PURPORTEDLY SUGGESTS THE JOB LOSS COULD BE EVEN HIGHER WHAT THE BOOK DOESN'T SAY THOUGH IS THAT BOTH OF THE CITED SOURCES WENT ON TO CONCLUDE THE ACCORD WOULDN'T CAUSE THE US TO LOSE MORE JOBS TO MEXICO THAN IT GAINED THENSECRETARY OF LABOR LYNN MARTIN ESTIMATED THAT THE ACCORD WOULD GENERATE 100000 TO 180000 MORE AMERICAN JOBS THAN WOULD BE LOST THE BUDGET OFFICE SAID IT EXPECTED EXPANDED US EMPLOYMENT AS WELL THE PEROT BOOK'S ASSERTION IS AN INCOMPLETE READING SAYS STEVEN HOFMAN A FORMER LABOR DEPARTMENT OFFICIAL UNDER SECRETARY MARTIN MR CHOATE THE BOOK'S COAUTHOR DEFENDS THE SELECTIVE QUOTATIONS ON THE GROUND THAT HE DOESN'T TRUST THE NET JOBINCREASE ESTIMATES I BELIEVE THE DISPLACEMENT HE SAYS I DON'T BELIEVE THE GAIN MR CHOATE CITES THE ECONOMIC POLICY INSTITUTE A WASHINGTON RESEARCH GROUP AS THE SOURCE FOR THE BOOK'S ASSERTION THAT MEXICO'S WAGES ADJUSTED FOR INFLATION HAVE DROPPED BY MORE THAN 50 OVER THE PAST DECADE EVEN AS MEXICAN WORKERS IN THE EXPORT INDUSTRIES HAVE DRAMATICALLY INCREASED THEIR PRODUCTIVITY BUT THEA LEE AN ECONOMIST AT THE INSTITUTE SAYS THAT'S NOT CORRECT MS LEE SAYS THERE WAS A SUBSTANTIAL DECLINE BUT LESS THAN 50 OVER THE FIVEYEAR PERIOD FROM 1983 TO 1988 A PERIOD OF EXTRAORDINARY TURMOIL IN MEXICO BECAUSE OF INFLATION AND A DEBT CRISIS BUT SINCE THEN SHE SAYS REAL WAGES HAVE RISEN BETWEEN 20 AND 30 DEPENDING ON WHAT STATISTICS ARE USED MEANWHILE BANAMEX A MEXICAN BANK SAYS WAGES HAVE INCREASED MORE THAN 50 SINCE 1985 MR CHOATE SAYS STUDIES SHOWING INCREASES IN REAL WAGES HAVE A DIFFERENT WAY OF COMING UP WITH NUMBERS CONTENDING THAT MEXICO HAS BROKEN THE LINK BETWEEN WAGES AND PRODUCTIVITY THE BOOK ARGUES THAT IF NAFTA PASSES US BUSINESSES WILL AUTOMATICALLY FLOCK TO MEXICO BECAUSE OF ITS LOW WAGES IF IT IS PASSED THE TRADE AGREEMENT WILL PIT AMERICAN AND MEXICAN WORKERS IN A RACE TO THE BOTTOM MR PEROT WRITES LATER CITING A LABOR DEPARTMENT FIGURE OF 235 AN HOUR FOR MANUFACTURING LABOR COSTS IN MEXICO BUT ECONOMISTS AND TRADE EXPERTS ARGUE THAT IT ISN'T THAT SIMPLE ACCORDING TO A STUDY TWO YEARS AGO BY GEORGE BAKER A BERKELEY CALIF CONSULTANT WHO WORKS WITH US COMPANIES THINKING OF DOING BUSINESS IN MEXICO WHEN SUCH HIDDEN COSTS AS WATERMAIN BREAKS OR ELECTRICITY FAILURES ARE FACTORED IN THE REAL COST OF LABOR IN MEXICO WAS 8 TO 10 AN HOUR AND THAT FIGURE HAS RISEN SINCE THE STUDY WAS CONDUCTED MR BAKER SAYS THE PEROT BOOK IS A SLIPSHOD PIECE OF WORK SAYS JEFF SCHOTT A SENIOR FELLOW AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS A WASHINGTON RESEARCH GROUP THAT HAS DONE NAFTA STUDIES PREDICTING A NET GAIN OF US JOBS THERE ARE A LOT OF REASONS WHY COMPANIES INVEST AND LABOR COSTS ARE JUST ONE FACTOR MR CHOATE SAYS THAT OTHER FACTORS SUCH AS LAX MEXICAN REGULATIONS AND ACCESS TO THE US MARKET WOULD ALSO BE LURES FOR US COMPANIES BUT THAT WAGES ARE THE PRINCIPAL DETERMINANT BY MR PEROT'S ANALYSIS IN THE BOOK MILLIONS OF AMERICANS WILL LOSE THEIR JOBS BECAUSE OF NAFTA THE ESTIMATE IS BASED ON WORK DONE BY MR CHOATE TO FIND THE NUMBER OF MANUFACTURING WORKERS WHO CREATE PRODUCTS WHERE LABOR ACCOUNTS FOR 20 OR MORE OF COSTS ABOUT 59 MILLION PEOPLE BUT EVEN STUDIES BY GROUPS CRITICAL OF NAFTA DON'T COME CLOSE TO THAT NUMBER AND MANY ECONOMISTS DISMISS THE ARGUMENTS THAT UNDERGIRD IT FOR EXAMPLE THE FIGURE INCLUDES AEROSPACE WORKERS A GROUP WHOSE INDUSTRY ISN'T EXPECTED TO FLOOD INTO THE MEXICAN MARKET THAT'S COCKEYED JAGDISH BHAGWATI A COLUMBIA UNIVERSITY ECONOMICS PROFESSOR SAYS OF MR PEROT'S ASSERTION THAT 59 MILLION US WORKERS ARE AT RISK UNDER NAFTA IT ASSUMES THAT PEOPLE WITH HIGHERWAGE BILLS WILL INEVITABLY GRAVITATE TO WHERE THE WAGES ARE LOWER THIS IS SIMPLISTIC REASONING USED TO ARRIVE AT QUITE ALARMIST CONCLUSIONS ONE OF MR PEROT'S BIGGEST ARGUMENTS IS THAT THE US MANUFACTURING BASE WOULD BE AT RISK UNDER NAFTA IN 1992 THE US HAD A MANUFACTURING SURPLUS OF 75 BILLION WITH MEXICO AFTER DEFICITS IN THE 1980S IN TERMS OF OVERALL TRADE THE US EXPORTED ABOUT 40 BILLION TO MEXICO AND IMPORTED 356 BILLION GIVING THE US A TRADE SURPLUS MR PEROT SAYS THE TRADESURPLUS FIGURES ARE MISLEADING BECAUSE MANY OF THE EXPORTS WERE CAPITAL EQUIPMENT SUCH AS TOOLS AND MACHINES USED TO BUILD MORE MEXICAN FACTORIES BUT CAPITAL GOODS ARE A HUGE PART OF US EXPORTS EVERYWHERE NOT JUST TO MEXICO IN 1992 CAPITAL GOODS AMOUNTED TO 34 OF US EXPORTS TO MEXICO THEY REPRESENTED 40 OF EXPORTS TO THE WORLD THE ASSAULT ON THE TRADE ACCORD EVEN EXTENDS TO THE QUESTION OF DRIVER'S LICENSES THE BOOK ARGUES THAT THE TRADE AGREEMENT WOULD MAKE A MOCKERY OF US SAFETY STANDARDS BECAUSE WHILE US TRUCK DRIVERS HAVE TO BE 21 YEARS OF AGE BEFORE THEY CAN GET A COMMERCIAL LICENSE MEXICAN TRUCK DRIVERS CAN BE 18 NAFTA WON'T REDUCE THE STANDARD TO DRIVE IN THE US MEXICAN TRUCK DRIVERS WILL STILL BE REQUIRED TO MEET THE US AGE REQUIREMENTS MR CHOATE THOUGH ARGUES THAT IN EFFECT THEY'LL BE LOWERED BECAUSE HE BELIEVES THAT THE MINIMUMAGE REQUIREMENT WON'T BE CHECKED AT THE BORDER MR CHOATE SAYS THAT HE AND MR PEROT EXPECTED ATTACKS ON THE VERACITY AND ANALYSES CONTAINED IN THE BOOK AND ARE READY FOR THEM WE'RE FULLY PREPARED TO DEFEND THE BOOK HE SAYS THE OBJECTIVE IS TO SEND UP A FLARE TO THE AMERICAN PEOPLE ABOUT NAFTA 9308270042 930827 BUSINESS BRIEF SYNTEX CORP PROFIT ROSE 44 IN 4TH PERIOD IN LINE WITH EXPECTATIONS SYNTEX CORP CITING STRONG US SALES OF ITS PHARMACEUTICALS AND COST REDUCTIONS SAID FISCAL FOURTHQUARTER NET INCOME JUMPED 44 TO 1334 MILLION OR 60 CENTS A SHARE FROM 925 MILLION OR 41 CENTS A SHARE A YEAR EARLIER FOR THE PERIOD ENDED JULY 31 THE PALO ALTO CALIF COMPANY SAID REVENUE CLIMBED 6 TO 541 MILLION FROM 5112 MILLION SYNTEX WAS UP 125 OR 73 TO 18375 IN LATE NEW YORK STOCK EXCHANGE TRADING THE RESULTS WHICH WERE IN LINE WITH ANALYSTS' EXPECTATIONS REFLECT A SCALING BACK OF WORLDWIDE OPERATIONS TO CONCENTRATE ON THE MORE LUCRATIVE DOMESTIC MARKET US PHARMACEUTICAL SALES GREW 15 IN THE QUARTER WHILE FOREIGN SALES FELL 7 THE COMPANY HAS ALREADY CUT ITS WORK FORCE BY 12 TO 10300 EMPLOYEES WITH ANOTHER 800 JOBS SLATED TO BE ELIMINATED OVER THE NEXT TWO YEARS FOR THE YEAR SYNTEX REPORTED A 39 DECLINE IN NET INCOME TO 2872 MILLION OR 129 A SHARE FROM 4723 MILLION OR 210 A SHARE BECAUSE OF RESTRUCTURING CHARGES OF 249 MILLION REVENUE GREW 3 TO 212 BILLION FROM 206 BILLION 9308270041 930827 BUSINESS BRIEF HADSON ENERGY RESOURCES CORP APACHE CORP AGREES TO BUY REST OF FIRM FOR 30 MILLION APACHE CORP HOUSTON SAID IT AGREED TO ACQUIRE THE TWO MILLION COMMON SHARES OF HADSON ENERGY RESOURCES CORP THAT IT DOESN'T ALREADY OWN IN A TRANSACTION VALUED AT ABOUT 30 MILLION APACHE ALREADY HAS A 68 STAKE IN HADSON ENERGY APACHE AN OIL AND NATURAL GAS COMPANY SAID IT WILL PAY 15 A SHARE IN EITHER CASH OR ITS OWN COMMON STOCK AS HADSON ENERGY HOLDERS CHOOSE HADSON ENERGY IS AN OKLAHOMA CITY OIL AND GAS COMPANY IN TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY APACHE CLOSED AT 3250 UP 125 CENTS IN TRADING ON THE AMERICAN STOCK EXCHANGE HADSON ENERGY CLOSED AT 1475 UP 375 CENTS APACHE AGREED IN JUNE TO BUY ITS 68 STAKE IN HADSON ENERGY AND IT SAID THEN THAT IT PLANNED TO ACQUIRE MORE SHARES DURING THE NEXT YEAR 9308270040 930827 TECHNOLOGY FIRST PCS NETWORK FACES STATIC IN BRITAIN POCKETPHONE SYSTEM SEEN AS TOO LIMITED FOR PRICE BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON WHILE US CONSUMERS AWAIT NEW PERSONAL COMMUNICATIONS SERVICES OR PCS TO LET THEM ROAM FREELY WITH CHEAP POCKET PHONES THE WORLD'S FIRST SUCH SERVICE IN BRITAIN IS FACING STATIC THE SERVICE RUN BY A JOINT VENTURE OF U S WEST INC AND CABLE & WIRELESS PLC IS SCHEDULED TO BEGIN COMMERCIAL OPERATIONS THIS FALL BUT INDUSTRY ANALYSTS ALREADY ARE QUESTIONING WHETHER THE SERVICE MERCURY ONE2ONE WILL BE AS BIG A HIT WITH BRITISH CONSUMERS AS ITS PROMOTERS HOPE THE PROBLEM IS IT RISKS CHARGING TOO MUCH FOR TOO LITTLE ITS CALL CHARGES ARE AT LEAST 20 BELOW RIVAL CELLULARSERVICE PRICES BUT THAT MAY BE TOO SMALL A DISCOUNT TO COMPENSATE FOR ITS RESTRICTED CALLING AREA PCS IS LIMITED INITIALLY TO THE LONDON AREA WHERE COMPETITORS ARE COUNTERATTACKING BY CUTTING PRICES IT'S GOING TO BE A SLOWER TAKEOFF THAN I MIGHT HAVE THOUGHT THREE OR FOUR MONTHS AGO BEFORE TRYING THE PHONE FOR HIMSELF AND GETTING A FUZZY SIGNAL SAYS PATRICK HICKEY A FINANCIAL ANALYST AT LONDON STOCKBROKERS HENDERSON CROSTHWAITE INSTITUTIONAL BROKERS HE SAYS ONE2ONE ISN'T CHEAP ENOUGH TO WEAN HIM YET FROM HIS STANDARD CELLULAR PHONE BECAUSE THE 300 MILLION 4442 MILLION VENTURE IS THE FIRST COMMERCIAL TRIAL OF ONE OF THE TELECOMMUNICATIONS INDUSTRY'S MOST TOUTED TECHNOLOGIES THERE WILL BE AN AWFUL LOT OF INTERESTED EYES WATCHING HOW SUCCESSFUL IT WILL BE SAYS RICHARD SIBER OF BIS STRATEGIC DECISIONS A CONSULTINGFIRM UNIT OF NYNEX CORP THE NEW YORKBASED REGIONAL TELEPHONE COMPANY A GERMAN SERVICE IS DUE TO BEGIN NEXT YEAR WHILE IN THE US ABOUT 165 PHONECOMPANY EXPERIMENTS WITH PCS TECHNOLOGIES ARE UNDER WAY THERE'S A LOT OF HYPE AROUND PCS BUT THE BRITISH EXPERIMENT SIMPLY INVOLVES STRIPPEDDOWN PCS TECHNOLOGY AND WHAT'S BASICALLY A FANCY BUT CUTPRICE CELLULAR PHONE BUT FOR U S WEST WHICH IS CONDUCTING THREE PCS TESTS IN THE US THE VENTURE IS THE TEST BED AND INCUBATION GROUND FOR ITS WORLDWIDE PCS STRATEGY SAYS STEVEN ANDREWS PRESIDENT OF U S WEST SPECTRUM ENTERPRISES INTERNATIONAL THE UNIT OF THE ENGLEWOOD COLO COMPANY RESPONSIBLE FOR MOBILEPHONE INVESTMENTS LIKE CONVENTIONAL CELLULAR PCS USES PHONECOMPANY COMPUTERS TO PASS RADIO CALLS AROUND HUNDREDS OF TRANSMITTING CELLS BUT IT TRANSMITS CONVERSATIONS IN COMPUTERLIKE BURSTS OF DATA SQUEEZING EIGHT TIMES AS MANY CALLS AT ONCE ON THE SAME RADIO CHANNEL AS CONVENTIONAL ANALOG CELLULAR SYSTEMS THIS DIGITAL TECHNOLOGY COSTS MORE TO BUILD BUT IS CHEAPER TO OPERATE COME AUTUMN THREE BRANDS OF ONE2ONE PHONE WILL BE OFFERED FROM MOTOROLA CORP NEC CORP AND SIEMENS AG BUT THE DIGITAL TECHNOLOGY GIVES THEM SOME UNUSUAL FEATURES EACH SUBSCRIBER GETS A PLASTIC SMART CARD EMBEDDED WITH A COMPUTER CHIP THAT SLIPS INTO THE TELEPHONE IT UNLOCKS THE PHONE AND STORES PHONE NUMBERS AND OTHER DATA A PUSH OF A BUTTON CALLS THE ONE2ONE COMPUTER TO CHECK FOR VOICEMAIL MESSAGES PUSHING A FEW MORE BUTTONS CAN ROUTE CALLS TO ANOTHER NUMBER OR CHECK DATABASES FOR OTHER NUMBERS USERS CAN PROGRAM THE PHONE TO HANG ITSELF UP WHEN THE BILL GETS TOO HIGH THE SYSTEM TICKLED MANY OF THE APPROXIMATELY 2000 LONDONERS WHO TESTMARKETED IT THIS SPRING AND SUMMER I THINK IT'S A BRILLIANT SYSTEM SAYS ALAN MILLS A SMALLBUSINESS CONSULTANT HE HAD SHIED AWAY FROM CELLULAR AS TOO EXPENSIVE BUT PLANS TO BUY A PHONE WHEN THEY GO ON SALE BUT MR HICKEY THE FINANCIAL ANALYST GRUMBLES THAT HIS TEST MODEL AT FIRST PROVIDED CRACKLY FUZZY LINES THE PROBLEM STEMMING FROM A FEW SPOTS IN LONDON WHERE THE VENTURE HADN'T INSTALLED ENOUGH ANTENNAS HAS BEEN SOLVED BUT A CONTINUING CONCERN HE AND OTHER ANALYSTS SAY IS THE VENTURE'S DECISION TO PACE FINANCES BY OPENING THE SERVICE ONLY IN THE LONDON AREA RATHER THAN NATIONWIDE THAT MAKES IT MORE A RICH MAN'S CORDLESS PHONE RATHER THAN A MASSMARKET CELLULAR SYSTEM SAYS ANALYST LAURENCE HEYWORTH OF LONDON STOCKBROKERS ROBERT FLEMING SECURITIES LTD WORSE COMPETITORS ARE MOBILIZING FOR A FIGHT TO THE DEATH VODAFONE GROUP PLC ONE OF TWO CELLULAR OPERATORS IN BRITAIN SAYS IT PLANS ON OCT 1 TO LAUNCH A DIGITAL SERVICE THAT WILL OFFER CUTRATE CALLS IN LONDON AND OTHER BIG CITIES BUT STEEP PRICES EVERYWHERE ELSE WE'LL TAKE WHATEVER STEPS WE NEED TO MAINTAIN OUR MARKET POSITION A VODAFONE SPOKESMAN SAYS VODAFONE AND ITS RIVAL THE CELLNET AFFILIATE OF BRITISH TELECOMMUNICATIONS PLC HAVE 16 MILLION SUBSCRIBERS BETWEEN THEM AND THE PARTNERSHIP WILL FACE COMPETITION IN ITS OWN TECHNOLOGY NICHE NEXT SPRING AN AFFILIATE OF HONG KONG'S HUTCHISON WHAMPOA LTD SAYS IT PLANS TO LAUNCH A RIVAL SERVICE USING THE SAME TECHNOLOGY BUT WITH CAREFUL MANAGEMENT OF ITS CONSTRUCTION BUDGET OFFERING NATIONWIDE COVERAGE CALL CHARGES NA NOTE ALL PRICES EXCEPT FOR PUCHASE OF TELEPHONE INCLUDE 175 VALUEADDED TAX AND REFLECT ALL SERVICE OPTIONS AVAILABLE THIS FALL INCOMING CALL CHARGES ARE PAID BY CALLER PRICES FOR CONVENTIONAL RESIDENTIAL SERVICES ARE ADJUSTED TO BE COMPARABLE TO MOBILE 9308270039 930827 BUSINESS BRIEF MIRAGE RESORTS INC CONCERN UNIVERSAL CASINO TO BUILD CASINO IN ARGENTINA MIRAGE RESORTS INC SAID IT AND A PARTNER RECEIVED A LICENSE TO BUILD A CASINO AND RESORT IN IGUAZU FALLS ARGENTINA THE COMPANY'S FIRST INTERNATIONAL VENTURE MIRAGE WHICH IS BASED IN LAS VEGAS SAID THE RESORT HAS AN ESTIMATED DEVELOPMENT COST OF BETWEEN 25 MILLION AND 30 MILLION MIRAGE'S JOINT VENTURE PARTNER IS UNIVERSAL CASINO LTD BASED IN ENGLAND MIRAGE SAID IT PLANS TO OPEN A CASINO IN A TEMPORARY FACILITY PENDING THE CONSTRUCTION OF A NEWLY DESIGNED RESORT THE FACILITY MAY BE OPENED WITHIN 90 DAYS ALTHOUGH NO DATE FOR THE OPENING OF THE RESORT HAS BEEN SET 9308270038 930827 LAW LEGAL BEAT CRITICS SEE INSUFFICIENT PROGRESS ON DISCIPLINE ACTIONS FOR LAWYERS BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL DECADES AFTER THE LEGAL PROFESSION ACKNOWLEDGED THAT WAYWARD ATTORNEYS ARE PUNISHED TOO QUIETLY AND ALL TOO SELDOM CONSUMER ADVOCATES ARE STILL FIGHTING MANY OF THE SAME OLD WARS A STUDY BY THE AMERICAN BAR ASSOCIATION IN 1970 REVEALED THAT STATE ATTORNEY DISCIPLINARY BOARDS WORKED IN SECRECY SCARED AWAY AGGRIEVED CLIENTS BY THREATENING THEM WITH SLANDER SUITS AND DISMISSED ALMOST ALL COMPLAINTS THINGS HAVE CHANGED SINCE THEN BUT NOT ENOUGH SAY CRITICS WHO RANGE FROM THE NATIONAL CONGRESS FOR LEGAL REFORM IN WASHINGTON TO LAWYERS WITHIN THE ABA ITSELF IN A STUDY LAST YEAR THE ABA WARNED THAT IF THE PROFESSION WANTS TO REGAIN PUBLIC CONFIDENCE IT WILL HAVE TO MAKE ITS DISCIPLINARY PROCEEDINGS MORE CLIENTFRIENDLY STATE DISCIPLINARY AGENCIES TYPICALLY ARE RUN BY BAR ASSOCIATIONS THE COURTS OR BOTH LAWYER DISCIPLINE HAS IMPROVED IN MORE THAN HALF THE STATES FOR INSTANCE HEARINGS ARE PUBLIC AND STATE DISCIPLINARY BOARDS ALONG WITH THE ABA IN CHICAGO NOW HAVE PHONE LINES SO THAT CLIENTS CAN CHECK DISCIPLINARY RECORDS NEVERTHELESS LAWYER DISCIPLINE IS STILL CLANDESTINE IN MANY WAYS ONLY IN FLORIDA OREGON AND WEST VIRGINIA CAN CONSUMERS LEARN THE NUMBER OF COMPLAINTS LODGED AGAINST A LAWYER A NEW JERSEY COMMISSION THIS YEAR SUGGESTED DISCLOSING SUCH DATA BUT THE PROPOSAL IS FAR FROM BEING IMPLEMENTED LAWYERS ARGUE THAT THEY NEED TO BE ABLE TO PROTECT THEMSELVES FROM BASELESS COMPLAINTS BY VINDICTIVE CLIENTS AND FROM MEDIA INQUIRIES IN LITIGATION ONE SIDE ALWAYS LOSES AND SOMETIMES OR QUITE OFTEN THEY BLAME THEIR LAWYER SAID ROBERT W NORRIS GENERAL COUNSEL FOR THE ALABAMA STATE BAR IN ALABAMA CERTAIN GRIEVANCES ARE CONFIDENTIAL EVEN AFTER THE LAWYER IS DISCIPLINED THE STATE'S SUPREME COURT IS CONSIDERING A PROPOSAL TO OPEN SUCH FILES CONSUMER GROUPS COUNTER THAT MAKING ALL COMPLAINTS PUBLIC EVEN THOSE IN WHICH THE LAWYER IS EXONERATED WOULD RESTORE CONSUMER TRUST A CLOSED SYSTEM ONLY REALLY PROTECTS THE GUILTY SAID DEIRDRE AKERSON WHO RUNS THE NATIONAL COALITION FOR FAMILY JUSTICE AN IRVINGTON NY LEGALREFORM GROUP FOCUSING ON DIVORCE COURTS EVEN IF MANY OF THE COMPLAINTS TURN OUT TO BE BASELESS IF THE PUBLIC WERE ABLE TO HEAR THE CASE AS IT EVOLVED THEN CONFIDENCE WOULD INCREASE DRAMATICALLY THE ABA AND CONSUMER GROUPS ALSO FAULT STATE DISCIPLINARY AGENCIES FOR CONTINUING TO SILENCE PEOPLE WHO FILE COMPLAINTS AGAINST LAWYERS GAG RULES IN ABOUT 10 STATES MAKE IT A CRIME TO EVEN MENTION HAVING FILED A COMPLAINT AGAINST A LAWYER VIOLATORS FACE CONTEMPTOFCOURT CHARGES AND JAIL TIME FLORIDA'S GAG RULE WAS OVERTURNED IN 1990 IN A CASE FILED BY A MAN IDENTIFIED ONLY AS JOHN DOE HE CHALLENGED THE RULE BECAUSE HE WANTED TO WRITE A LETTER TO A NEWSPAPER COMPLAINING THAT HIS LAWYER WASN'T DISCIPLINED HARSHLY ENOUGH A FEDERAL JUDGE SAID THE GAG RULE VIOLATED FREESPEECH RIGHTS ANOTHER GRIPE OF CONSUMER ADVOCATES IS THAT COMPLAINTS OFTEN LANGUISH FOR YEARS BEFORE A RULING ONE NEW JERSEY CASE INVOLVING A LAWYER WHO BROKE INTO HIS EXWIFE'S HOME SAT FOR ALMOST NINE YEARS BEFORE THE ATTORNEY WAS PUBLICLY REPRIMANDED IN 1991 FOR CRIMINAL CONDUCT UNBECOMING OF A LAWYER DISCIPLINARY OFFICIALS IN VARIOUS STATES STRESS THAT MOST LAWYERS ARE HONEST AND SKILLED ALMOST ALL GRIEVANCES STEM FROM FEE DISPUTES MISCOMMUNICATION OR OTHER PROBLEMS THAT AREN'T COVERED BY THE PROFESSION'S CODE OF CONDUCT DISCIPLINARY AGENCIES WHICH MOSTLY DEAL WITH ETHICS DISPUTES DISMISS SUCH COMPLAINTS TO HANDLE MOUNTING CLIENT FRUSTRATION BAR ASSOCIATIONS HAVE ADDED ARBITRATION PANELS ESPECIALLY FOR SUCH MATTERS LEGALREFORM GROUPS SAY SUCH CHANGES THOUGH GRATIFYING ARE INADEQUATE THEY SAY THE CHIEF PROBLEM IS THAT BAR ASSOCIATIONS HAVE TOO MUCH CONTROL OVER THE DISCIPLINARY PROCESS THINGS ARE NEVER GOING TO CHANGE AS LONG AS IT'S UP TO THE LAWYERS SAID HARVEY KASH A MEMBER OF THE NATIONAL CONGRESS FOR LEGAL REFORM THE ABA RECOMMENDED IN 1991 THAT STATE COURTS CONTROL THE ENTIRE DISCIPLINARY PROCESS AS SOME ALREADY DO SOME CONSUMER GROUPS GO FURTHER AND SAY COURTS SHOULD BE OUT OF THE PROCESS AS WELL NO STATE HAS SUCH A SYSTEM SAID THERESA MEEHAN RUDY RESEARCH DIRECTOR FOR HALT A LEGALREFORM GROUP BASED IN WASHINGTON MOST STATE BARS ARE HAPPY WITH THE STATUS QUO MS RUDY SAID OR THEY FEEL THAT THEY DESERVE SOME SORT OF BIG PAT ON THE BACK BECAUSE THEY MADE ONE OR TWO SMALL REFORMS THE DEFENDANTS WERE CHARGED WEDNESDAY IN AN INDICTMENT THAT ACCUSED THEM OF CONSPIRING TO CARRY OUT THE FEB 26 BOMBING OF THE WORLD TRADE CENTER AND PLANNING ATTACKS ON SEVERAL NEW YORK LANDMARKS THE SHEIK WHO PREVIOUSLY PREACHED AT MUSLIM MOSQUES IN BROOKLYN AND NEW JERSEY HAS BEEN IN FEDERAL CUSTODY SINCE EARLY JULY FOR DEPORTATION PROCEEDINGS IN FEDERAL COURT IN NEW YORK JUDGE MICHAEL MUKASEY SUGGESTED THAT PROSECUTORS MIGHT HAVE TO SPLIT UP THE DEFENDANTS' TRIALS IN LIGHT OF A FEDERAL APPELLATE DECISION DISCOURAGING TRIALS OF MORE THAN 10 DEFENDANTS IN CASES EXPECTED TO LAST SEVERAL WEEKS AFTER THE ARRAIGNMENT ANDREW C MCCARTHY AN ASSISTANT US ATTORNEY SAID PROSECUTORS ARE CONSIDERING SUCH A MOVE AT THE HEARING RONALD KUBY AN ATTORNEY FOR ONE OF THE DEFENDANTS SIDDIG IBRAHIM SIDDIG ALI DECRIED LEAKS TO THE NEWS MEDIA OF TRANSCRIPTS OF INVESTIGATORS' SECRET RECORDINGS OF SOME DEFENDANTS MR KUBY BLAMED THE LEAKS ON GOVERNMENT OFFICIALS AND URGED THE COURT TO TAKE ACTION AGAINST THE GOVERNMENT IN THE FORM OF SANCTIONS THE JUDGE DECLINED TO ORDER ANY SANCTIONS BUT HE HAS ASKED PROSECUTORS TO FILE SWORN STATEMENTS REGARDING THEIR DEALINGS WITH THE JOURNALISTS TO DETERMINE WHO WAS RESPONSIBLE FOR THE LEAKS THIS MONTH DEFENSE ATTORNEY MICHAEL WARREN WHO IS REPRESENTING DEFENDANT EL SAYYID NOSAIR SAID HE WILL ARGUE IN COURT THAT FEDERAL PROSECUTORS ARE UNFAIRLY PROSECUTING HIS CLIENT TWICE FOR THE SAME CRIME THE MURDER OF RABBI MEIR KAHANE MR NOSAIR WAS ACQUITTED OF THE MURDER CHARGE IN A STATE TRIAL BUT IS SERVING TIME ON A RELATED WEAPONS CONVICTION IN THE NEW INDICTMENT FEDERAL PROSECUTORS ARE PURSUING A RACKETEERING CHARGE AGAINST MR NOSAIR IN CONNECTION WITH THE 1990 KILLING OF RABBI KAHANE IN NEW YORK THE NEXT HEARING IN THE CASE WAS SET FOR NOV 4 KATIA HETTER CONTRIBUTED TO THIS ARTICLE 9308270037 930827 YOUR MONEY MATTERS WEEKEND REPORT HOMEEQUITY DEBT IS EASY BUT RISKY CREDIT BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL NEVER HAS HOMEEQUITY DEBT BEEN SO CHEAP SO ACCESSIBLE OR SO DANGEROUS FIERCE COMPETITION AMONG BANKS AND THRIFTS PLUS PLUMMETING INTEREST RATES HAVE DRIVEN HOMEEQUITY LOANS AND CREDIT LINES TO THEIR LEASTEXPENSIVE LEVELS EVER HOMEEQUITY DEBT ALSO HAS BECOME SOME OF THE EASIEST CREDIT TO GET WITH MANY BORROWERS REPAYING HOMEEQUITY LOANS FROM THE PROCEEDS OF MORTGAGE REFINANCINGS LENDERS ARE TRYING TO GIN UP NEW BUSINESS BY WAIVING FEES HANDLING APPLICATIONS BY PHONE AND EVEN OFFERING REBATES CONSUMERS SOON MAY BE UNDER RENEWED MARKETING ASSAULT THE MAIN THEME OF A LENDERS' CONFERENCE IN OCTOBER WILL BE HOW TO MUSTER MORE BUSINESS THEY'D BE HAPPY MAKING ANY KIND OF A LOAN SAYS FRITZ ELMENDORF A VICE PRESIDENT FOR CONSUMER BANKERS ASSOCIATION IN ARLINGTON VA AND WITH THE HIGHER RATES UNDER THE NEW TAX LAWS MAKING HOMEEQUITY INTEREST DEDUCTIONS MORE VALUABLE FOR UPPERINCOME TAXPAYERS MANY HOMEOWNERS MAY FIND THE LENDERS' SALES PITCHES ESPECIALLY COMPELLING BUT WHILE HOMEEQUITY BORROWING CAN MAKE GOOD SENSE FOR SOME PEOPLE IN CERTAIN CIRCUMSTANCES IT ALSO CAN BE DOWNRIGHT DANGEROUS THERE IS AMPLE EVIDENCE THAT MANY DON'T APPRECIATE THE RISKS OR CAN'T HANDLE THE TEMPTATION OF HAVING IN EFFECT THE ULTIMATE CREDIT CARD TAKE JERRY GROUSSMAN A FORMER CALIFORNIAN WHOSE ILLTIMED HOMEEQUITY LOAN CONTRIBUTED TO A BANKRUPTCY MR GROUSSMAN AND HIS WIFE CYNTHIA BOUGHT A THREEBEDROOM HOME IN ORANGE COUNTY FOR 186000 AND WATCHED THE VALUE RISE TO AN APPRAISED 206000 IN 1990 THEY TOOK OUT A 30000 HOMEEQUITY LOAN THAT ENABLED THEM TO PUT A DOWN PAYMENT ON A FIVEBEDROOM DREAM HOME THAT COST 280000 THEY HOPED TO SELL THE SMALLER HOME QUICKLY BUT THE HOUSING BUBBLE BURST VALUES COLLAPSED AND THE GROUSSMANS FOUND THEMSELVES STUCK WITH TWO HOMES MR GROUSSMAN THEN LOST HIS JOB AS A CONSTRUCTION EXECUTIVE EXHAUSTED ALL CREDIT AND FILED FOR PERSONAL BANKRUPTCY PROTECTION BEFORE WALKING AWAY FROM THE MESS NOTHING'S GUARANTEED NO MATTER HOW ROSY THE PICTURE LOOKS MR GROUSSMAN MUSES FROM HIS NEW HOME OUTSIDE SEATTLE WHERE THE FAMILY IS STARTING ANEW EDWARD MARSH PRESIDENT OF FIRST INDEPENDENT TRUST DEED SERVICES A BIG ENCINO CALIF FORECLOSURE COMPANY SAYS MANY CALIFORNIANS FELL INTO THE HOMEEQUITY TRAP BECAUSE APPRAISERS TENDED TO OVERVALUE PROPERTIES BEFORE THE MARKET CRATERED BEFORE SLOWING IN THE PAST YEAR BECAUSE OF REFINANCINGS HOMEEQUITY BORROWING EXPLODED TO ROUGHLY A HALFTRILLION DOLLARS FROM LESS THAN 300 BILLION IN 1988 ALONG THE WAY HOMEEQUITY LOANS AND CREDIT LINES EFFECTIVELY REPLACED CONVENTIONAL CREDIT CARDS AND INSTALLMENT DEBT AS THE CONSUMER LOAN OF CHOICE DEMAND FOR HOMEEQUITY CREDIT SOARED AFTER CONGRESS REDID THE TAX CODE IN 1986 ELIMINATING OVER THREE YEARS THE DEDUCTIBILITY OF INTEREST PAID ON AUTO LOANS CREDIT CARDS AND OTHER FORMS OF CONSUMER CREDIT MANY BORROWERS PERHAPS MOST HAVE USED HOMEEQUITY CREDIT TO GOOD ADVANTAGE TYPICAL IS RICHARD F DEMONG A COLLEGE PROFESSOR IN CHARLOTTESVILLE VA OVER THE YEARS HE HAS USED A BIG HOMEEQUITY LINE TO PUT HIS CHILDREN THROUGH COLLEGE BUY THREE CARS AND ENHANCE THE VALUE OF HIS THREEBEDROOM HOME WITH A NEW BATHROOM AND FAMILY ROOM MR DEMONG SAYS HE HAS DISCIPLINED HIMSELF TO PAY DOWN THE EQUITY LINE AFTER USING IT OTHER PEOPLE HAVE ENOUGH DISCIPLINE TO EMPLOY THEIR EQUITY LINES TO MAKE MONEY TIM KOCHIS A FINANCIAL PLANNER IN SAN FRANCISCO SAYS ONE OF HIS CLIENTS EXTRACTED 100000 IN EQUITY FROM HIS 800000 HOME AND IS USING THE CASH TO ADD TO HIS INVESTMENT PORTFOLIO THE OUTSTANDING MORTGAGE HAD BEEN WHITTLED TO JUST 65000 SO THERE WAS PLENTY OF EQUITY TO WORK WITH IN WINCHESTER VA WILLIAM J MENCAROW PUBLISHER OF A MORTGAGE BROKERAGE NEWSLETTER SAYS HE AND HIS WIFE USED A HOMEEQUITY LINE AS A SAFETY CUSHION SEVERAL YEARS BACK TO START THE BUSINESS HE NOW RUNS APPROVED FOR A LINE OF UP TO 25000 AGAINST THEIR HOME MR MENCAROW SAYS THEY USED JUST ENOUGH TO GET THE BUSINESS UP AND RUNNING WE WOULD USE 5000 HERE AND PAY IT DOWN HE SAYS WE MADE A PLEDGE NEVER TO GO CRAZY WITH IT BUT GOING CRAZY IS EXACTLY WHAT FINANCIAL ADVISERS SAY TOO MANY HOMEOWNERS DO WHEN THEY DRAW ON THEIR HOME EQUITY TO FINANCE FANCY CARS EUROPEAN VACATIONS GAMBLING TREKS AND THE LIKE WITH NO INTENTION OR ABILITY TO REPAY IT FINANCIAL ADVISERS SAY HOMEEQUITY BORROWERS SHOULD PROCEED SLOWLY AND WITH GREAT CARE RULE NO 1 THEY SAY IS NEVER BORROW MORE THAN YOU CAN AFFORD TO REPAY TOO OFTEN THEY SAY PEOPLE DRAW ON THEIR HOME EQUITY TO REFINANCE A LARGE AMOUNT OF CREDITCARD DEBT ONLY TO RUN UP THE CREDIT CARDS AGAIN THIS TEMPTATION IS SO GREAT THAT AAMES HOME LOAN A BIG LOS ANGELES LENDER HAS ADVISED BORROWERS IN ITS RADIO ADS TO COME IN FOR A HOMEEQUITY LOAN BUT THEN FOR HEAVEN'S SAKE CUT THOSE CARDS UP INTO LITTLE PIECES AND THROW THEM AWAY ANOTHER PITFALL IS THAT A THIRD OF HOMEEQUITY BORROWING IS AT A VARIABLE INTEREST RATE WHICH COULD SOAR FROM CURRENT LOW LEVELS POTENTIALLY DOUBLING OR TRIPLING THE MONTHLY COST THE VALUE OF THE HOME THE SECURITY FOR THE LOAN ALSO COULD FALL WIPING OUT A BORROWER'S REMAINING EQUITY AND SOME LENDERS PUSH VOLATILE INDEXES TO WHICH INTEREST RATES ARE TIED OR FAIL TO DISCLOSE COSTLY UPFRONT ORIGINATION FEES OR THE LACK OF A CEILING ON DEBT COSTS SOME BORROWERS RUN INTO TROUBLE BECAUSE LENDERS DON'T FULLY DISCLOSE POTENTIAL PROBLEMS OR COSTS ALTHOUGH FEDERAL REGULATIONS REQUIRE VARIABLE INTEREST RATES ON HOMEEQUITY CREDIT LINES HAVE A CEILING OR CAP THEY DON'T REQUIRE IT TO BE COMPETITIVE A CEILING OF 18 IS COMMON BUT SOME STATES ALLOW CAPS AS HIGH AS 25 SOME LENDERS ALSO CHARGE EXORBITANT POINTS WITH EACH ONE EQUALING ONE PERCENTAGE POINT OF THE LOAN BALANCE BEFORE PUBLIC EXPOSURE CURBED THIS PRACTICE RECENTLY A GROUP OF LENDERS IN THE BOSTON AREA CHARGED 20 POINTS ON LOANS WITH AN EFFECTIVE INTEREST RATE OF 39 THE LENDERS ALSO IMPOSED A 20 PENALTY IF THE BORROWER TRIED TO PREPAY ACCORDING TO AN ANALYSIS BY UNION NEIGHBORHOOD ASSISTANCE CORP A NONPROFIT HOUSING ADVOCACY GROUP IN BOSTON THREEQUARTERS OF THE PEOPLE WHO BORROWED FROM THESE COMPANIES LOST THEIR HOMES THROUGH FORECLOSURE FINALLY LOOK VERY CLOSELY AT THE LOCAL HOUSING MARKET TO SEE WHERE PROPERTY VALUES ARE HEADED THE MIDSECTION OF THE COUNTRY IS RELATIVELY SAFE SINCE PRICES DON'T FLUCTUATE WILDLY BUT VALUES ON BOTH COASTS HAVE BEEN HAMMERED WIPING OUT EQUITY AND THE DREAMS OF BORROWERS THE LESSON FROM ALL THIS IS TO MAINTAIN STRICT DISCIPLINE AND PREPARE FOR THE WORST AS MR KOCHIS ADVISES YOU HAVE TO ESTABLISH FOR YOURSELF YOUR OWN LIMITS AND ABIDE BY THEM 9308270036 930827 BUSINESS BRIEF MYCOGEN CORP WORK FORCE TO BE REDUCED BY 111 JOBS OR ABOUT 12 MYCOGEN CORP SAN DIEGO SAID IT WILL CUT ABOUT 12 OF ITS WORK FORCE OR ABOUT 111 JOBS TO REDUCE EXPENSES THE LAYOFFS ARE PART OF A RESTRUCTURING OF THE AGRICULTURAL BIOTECHNOLOGY COMPANY'S BUSINESS UNITS AND STREAMLINING OF ITS RESEARCH AND DEVELOPMENT ORGANIZATION FOLLOWING ITS PURCHASE OF A CONTROLLING INTEREST IN AGRIGENETICS CO LAST YEAR MYCOGEN SAID IT HAS CONSOLIDATED A NUMBER OF OVERLAPPING SALES TERRITORIES AND IS COMBINING ITS BIOPESTICIDE RESEARCH AND DEVELOPMENT PROGRAMS WITH AGRIGENETICS' PLANT SCIENCE AND BREEDING PROGRAMS OUR NUMBER ONE PRIORITY IS TO MAKE THE COMPANY PROFITABLE SAID JERRY CAULDER MYCOGEN'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE MYCOGEN REPORTED A LOSS OF 304 MILLION OR 209 A SHARE LAST YEAR AFTER A ONETIME CHARGE OF 216 MILLION BUT HAS SINCE RETURNED TO PROFITABILITY WITH NET INCOME OF 59 MILLION OR 29 CENTS A SHARE IN THE FIRST HALF 9308270035 930827 SPEAKING OF BUSINESS IN POLAND PRIVATIZATION'S BENEFITS PRECEDE IT BY LINDLEY H CLARK JR FOR THREE YEARS THE FORMER COMMUNIST NATIONS OF CENTRAL AND EASTERN EUROPE HAVE BEEN ARGUING ABOUT PRIVATIZING STATEOWNED ENTERPRISES MOST PEOPLE AGREE THAT PRIVATIZATION IS A DANDY IDEA BUT THERE'S SOME DISPUTE ABOUT JUST HOW IT SHOULD BE DONE BRIAN PINTO OF THE WORLD BANK AND TWO SCHOLARS FROM POLAND'S LODZ UNIVERSITY MAREK BELKA AND STEFAN KRAJEWSKI EXAMINE THIS QUESTION IN THE LATEST BROOKINGS PAPERS ON ECONOMIC ACTIVITY AS THEY COMMENT MANY ECONOMISTS HAVE BEEN URGING THE FORMER COMMUNISTS TO GET A MOVE ON AND PRIVATIZE THEIR STATEOWNED ENTERPRISES IF THEY DON'T THEY ARE TOLD THEY RUN THE RISK THAT WORKERS AND MANAGERS WILL SQUANDER STATE ASSETS AND PRIVATIZATION WILL GET PARALYZED BY ENDLESS DEBATE THE AUTHORS FOCUS ON POLISH MANUFACTURING INDUSTRIES IN 1990 THE FIRST YEAR OF POLAND'S REFORM PROGRAM STATE MANUFACTURING ACCOUNTED FOR SOME 30 OF THE GROSS DOMESTIC PRODUCT 19 OF EMPLOYMENT 85 OF EXPORTS AND 60 OF FISCAL REVENUE UP TO NOW POLAND HAS DONE VERY LITTLE PRIVATIZING AND YET BY MOST MEASURES IT NOW LEADS THE EXCOMMUNIST AREA IN REFORM AND RECOVERY POLAND ALSO IS LEADING THE WAY IN ECONOMIC GROWTH HOW DO THE POLES DO IT WELL TO BEGIN WITH THE MANUFACTURING FIRMS WERE ABLE TO RECRUIT AND RETAIN CAPABLE MANAGERS PRIVATIZATION PLAYED A ROLE ALTHOUGH VERY LITTLE OF IT WAS IN EFFECT THE MANAGERS OF STATEOWNED ENTERPRISES HAD NO OWNERSHIP INTEREST IN THEIR FIRMS NOR WERE THEIR SALARIES VERY LARGE BUT MANAGERS FELT THAT PRIVATIZATION WAS COMING AND WITH IT BETTER PAY AND A CHANCE TO ACQUIRE STOCK IN THEIR COMPANIES IF THEY DID A GOOD JOB IN A STATE ENTERPRISE THEY FELT THEY WOULD HAVE A SHOT AT MORE REWARDING JOBS WORKERS ALSO SEEMED TO RECOGNIZE THAT BETTER TIMES WERE COMING RESTRUCTURING REQUIRED LAYING OFF SOME WORKERS BUT THIS DIDN'T BRING THE PROTESTS THAT SOME OBSERVERS HAD EXPECTED WORKERS SEEMED TO REALIZE THAT IF INDUSTRIES BECAME MORE EFFICIENT THEY WOULD PRODUCE MORE JOBS FOR EVERYONE WITH CAPABLE MANAGERS AND COOPERATIVE WORKERS THE STATE ENTERPRISES HAVE GONE ALONG WITH THE GOVERNMENT'S HARDMONEY POLICIES THESE HAVE RESTRAINED INFLATION HELPING TO KEEP POLISH PRODUCTS COMPETITIVE THE STATE FIRMS ALSO HAVE GONE ALONG WITH THE GOVERNMENT'S FREETRADE POLICIES THOUGH THESE SUBJECT THEIR PRODUCTS TO IMPORT COMPETITION IN EFFECT THE GOVERNMENT HAS IMPLEMENTED ITS REFORM POLICIES WITHOUT UP TO NOW MOVING TO THE FINAL STAGEPRIVATE OWNERSHIP THIS PROGRESS HASN'T COME EASILY A REVIEW OF STATE ENTERPRISE PERFORMANCE IN MID1991 18 MONTHS AFTER POLAND'S BIG BANG MOVE TO FREE UP ITS ECONOMY SHOWED THAT INVENTORIES WERE PILING UP AND SALES AND PROFITABILITY DECLINING POLAND SEEMED HEADED FOR A HIGHINFLATION COLLAPSE THINGS BEGAN TO IMPROVE AS ENTERPRISES GAVE MANAGERS MORE POWER AND IMPROVED INCENTIVES GIVEN THE CHANCE MANAGERS BEGAN STRESSING PROFITS AND PURSUING MARKETING INSTEAD OF FOCUSING MAINLY ON INCREASING PRODUCTION TO HIT GOVERNMENT TARGETS IN 1992 GOOD NEWS BEGAN TO STREAM OUT OF POLISH MANUFACTURING NOT ONLY WERE THE STATE ENTERPRISES DOING BETTER BUT SURVEYS INDICATED THAT THE ENTERPRISES EXPECTED THINGS TO CONTINUE TO IMPROVE OPTIMISM LARGELY LACKING BEFORE WAS RAMPANT POLISH MANUFACTURING GOT ALONG FINE WITHOUT THE COUNCIL FOR MUTUAL ECONOMIC ASSISTANCE THE ORGANIZATION SPONSORED BY THE OLD SOVIET UNION TO PROVIDE CUSTOMERS AND SUBSIDIES FOR ITS SOCIALIST SATELLITES IT WAS A SHOCK WHEN THE AID FIRST DISAPPEARED BUT THE POLISH FIRMS REBOUNDED THE POLES HAVE DONE SO WELL THAT THERE HAS BEEN SOME DOUBT RAISED THAT POLAND REALLY NEEDS PRIVATIZATION POLISH MANAGERS HOWEVER THINK EVENTUAL PRIVATIZATION IS ESSENTIAL FOR ONE THING OF COURSE THE EXPECTATIONS OF MANAGERS AND WORKERS ARE BASED ON THE BELIEF THAT PRIVATIZATION IS BOTH GOOD AND DESIRABLE SURE IT'S NECESSARY TO RESTRUCTURE THE FIRMS FIRST TO INCREASE THEIR MARKET VALUE BUT THEN IT WILL BE TIME TO PRIVATIZE 9308270034 930827 BUSINESS BRIEF BJ SERVICES CO REVENUE PROJECTIONS ARE CUT BY 5 TO 6 FOR 4TH QUARTER BJ SERVICES CO HOUSTON SAID THAT IT LOWERED REVENUE PROJECTIONS BY 5 TO 6 FOR THE FISCAL FOURTH QUARTER AND THAT IT EXPECTS PERSHARE NET INCOME OF 30 CENTS TO 35 CENTS IN THE YEARAGO PERIOD NET WAS 42 MILLION OR 30 CENTS A SHARE ON REVENUE OF 84 MILLION THE COMPANY WHICH PROVIDES PRESSURE PUMPING AND RELATED SERVICES TO THE PETROLEUM INDUSTRY MADE ITS ANNOUNCEMENT AFTER INDUSTRY ANALYSTS LOWERED EARNINGS EXPECTATIONS FOR THE QUARTER ENDING SEPT 30 THE COMPANY SAID REVENUE PROJECTIONS WERE DOWN BECAUSE OF INTERNATIONAL PROJECT DELAYS AND WEAKERTHANEXPECTED US ACTIVITY AND PRICING FOR ITS SERVICES WE REMAIN OPTIMISTIC THAT US AND INTERNATIONAL MARKET CONDITIONS WILL IMPROVE AS WE MOVE INTO THE FALL AND WINTER DRILLING SEASON IT SAID BJ SERVICES SAID THE PROFIT FIGURE INCLUDES ADJUSTMENTS TO ITS FISCAL YEAR TAX PROVISION AND SOME NONRECURRING ITEMS WITHOUT THOSE BENEFITS EARNINGS ARE EXPECTED TO BE 24 CENTS TO 28 CENTS A SHARE 9308270033 930827 ALLIED CLINICAL NICHOLS INSTITUTE FACE INVESTIGATION BY EMORY THOMAS JR STAFF REPORTER OF THE WALL STREET JOURNAL SEVERAL MEDICAL LAB COMPANIES ACROSS THE COUNTRY ARE GETTING SUBPOENAS FROM FEDERAL OFFICIALS INVESTIGATING POSSIBLE IMPROPRIETIES IN SUBMITTING CLAIMS FOR FEDERAL REIMBURSEMENT TWO OF THE COMPANIES NICHOLS INSTITUTE AND ALLIED CLINICAL LABORATORIES INC ISSUED SEPARATE BUT SIMILARLY WORDED STATEMENTS SAYING THEY EXPECTED TO RECEIVE SUBPOENAS FROM OFFICIALS LOOKING AT THE POSSIBLE SUBMISSION OF ALLEGEDLY FALSE OR IMPROPER MEDICARE OR MEDICAID CLAIMS THE COMPANIES SAID THE REQUESTED DOCUMENTS RELATE TO THEIR SELLING PRICING AND BILLING PRACTICES ALLIED'S STOCK PRICE FELL 12 ON THE NEWS I AM NOT AWARE OF ANY IMPROPRIETIES IN CONNECTION WITH THE COMPANY'S MEDICARE OR MEDICAID PROGRAMS NICHOLS CHAIRMAN ALBERT NICHOLS SAID IN A STATEMENT NO CHARGES HAVE BEEN FILED ADDED THE SAN JUAN CAPISTRANO CALIF COMPANY ALLIED BASED IN NASHVILLE TENN SAID IN A STATEMENT THAT ITS POLICIES COMPLY WITH ALL LAWS AND THAT IT INTENDS TO COOPERATE FULLY IN THE INVESTIGATION IT DECLINED TO COMMENT FURTHER A SPOKESWOMAN FOR THE INSPECTOR GENERAL'S OFFICE IN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES WHICH IS CONDUCTING THE PROBES SAID THE SUBPOENAS WERE MAILED TUESDAY SHARES OF ALLIED SOMETHING OF A DARLING ON WALL STREET SINCE GOING PUBLIC IN 1990 FELL 2625 TO 1875 IN NATIONAL OVERTHECOUNTER TRADING ALLIED STOCK TRADED AS HIGH AS 31 A SHARE EARLIER THIS YEAR ALTHOUGH WEAK EARNINGS HAD SENT THE PRICE AS LOW AS 15 IN APRIL NICHOLS'S ANNOUNCEMENT CAME AFTER THE CLOSE OF MARKETS IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE THE COMPANY'S CLASS A SHARES CLOSED AT 6 UP 25 CENTS ITS CLASS C SHARES CLOSED AT 575 UP 375 CENTS THE INQUIRY COMES AFTER FEDERAL INVESTIGATORS LAST YEAR DECLARED FIGHTING HEALTHCARE FRAUD A TOP PRIORITY IN DECEMBER NATIONAL HEALTH LABORATORIES INC LA JOLLA CALIF AGREED TO PAY A 1114 MILLION SETTLEMENT AFTER IT WAS ACCUSED OF BILLING UNNECESSARY LAB TESTS TO MEDICARE AND OTHER GOVERNMENT INSURANCE PROGRAMS EARLIER THIS MONTH MEDCHEK LABORATORIES INC A PITTSBURGH MEDICALTESTING CONCERN AGREED TO A 24 MILLION GOVERNMENT SETTLEMENT FOR ALLEGED MEDICARE FRAUD WHILE INVESTIGATING ALLEGED FRAUD THE GOVERNMENT HAS ALSO TARGETED CLINICAL LABS FOR MAJOR HEALTHCARE SPENDING REDUCTIONS MEDICARE REIMBURSES LABS FOR 88 OF THE NATIONAL MEDIAN PRICE OF ANY GIVEN TEST BUT WITH THE RECENT PASSAGE OF THE OMNIBUS BUDGET ACT THE GOVERNMENT WILL TRIM THAT FIGURE TO 76 BY 1996 NICHOLS OPERATES REGIONAL LABS IN CALIFORNIA TEXAS THE PACIFIC NORTHWEST AND THE MIDWEST LAST YEAR THE COMPANY HAD A NET LOSS OF 43 MILLION ON REVENUE OF 2842 MILLION ALLIED OPERATES 13 REGIONAL LABS AND MORE THAN 200 OTHER SERVICE SITES PRIMARILY IN THE SOUTHEAST AND SOUTHWEST REIMBURSEMENTS FROM MEDICARE AND MEDICAID MAKE UP APPROXIMATELY ONETHIRD OF THE COMPANY'S TOTAL REVENUE IN 1992 THE COMPANY REPORTED EARNINGS OF 91 MILLION ON REVENUE OF 1372 MILLION RHONDA L RUNDLE IN LOS ANGELES CONTRIBUTED TO THIS ARTICLE 9308270032 930827 INTERNATIONAL BEIJING MAY GO TIT FOR TAT WITH US FOLLOWING SANCTIONS CHINA COULD REVOKE SUPPORT OF MISSILESALE CONTROLS BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING ANGERED AT FRESH US TRADE SANCTIONS A SENIOR CHINESE OFFICIAL CALLED THE RESTRICTIONS UNFAIR AND WARNED THAT BEIJING NOW MAY RETHINK ITS SUPPORT OF MISSILEEXPORT CONTROLS QIAN QICHEN A VICE PREMIER AND FOREIGN MINISTER SAID THE CLINTON ADMINISTRATION'S DECISION TO PUNISH CHINA FOR ALLEGED M11 MISSILETECHNOLOGY SALES TO PAKISTAN WILL DO MORE HARM TO US COMPANIES THAN TO CHINA BY WASHINGTON'S OWN ESTIMATES AMERICAN COMPANIES STAND TO LOSE AS MUCH AS 1 BILLION IN NEW SATELLITE AND HIGHTECHNOLOGY EXPORTS OVER THE TWOYEAR TERM OF THE SANCTIONS THE CHINESE MARKET IS OPEN MR QIAN SAID CITING THE STRONG INTEREST OF US COMPANIES IN CHINA'S RAPIDLY EXPANDING ECONOMY IF THE US IS RESTRICTING ITSELF WE CANNOT OFFER IT ANY HELP IN AN HOURLONG INTERVIEW THAT CENTERED ON USCHINA RELATIONS HUMAN RIGHTS AND CHINA'S ECONOMY THE 65YEAROLD MR QIAN DECLARED THROUGH AN INTERPRETER THAT CHINA WILL FOLLOW ITS OWN WAY IN ECONOMIC AND POLITICAL DEVELOPMENT DESPITE A WORLD BANK REPORT THIS WEEK WARNING OF OVERHEATING OF CHINA'S ECONOMY IT WILL CONTINUE TO GROW AT A FAST CLIP MR QIAN SAID EXPANDING THIS YEAR AT A PACE ROUGHLY THE SAME AS LAST YEAR'S 128 HE ASSERTED THE ECONOMY IS UNDER CONTROL BUT ADDED THAT MEASURES TO COMBAT CORRUPTION AND SPECULATION ARE TAKING EFFECT ONLY GRADUALLY HE SAID MORE DEMOCRATIC AND TRANSPARENT POLICYMAKING IS INEVITABLE IN CHINA AMERICANS SHOULD GET THE FOLLOWING MESSAGE SAID MR QIAN WHO WILL TRAVEL TO NEW YORK NEXT MONTH FOR THE UNITED NATIONS GENERAL ASSEMBLY SESSION CHINA WILL CONTINUE TO IMPLEMENT THE POLICY OF REFORM AND OPENING TO THE OUTSIDE WORLD THE CHINESE ECONOMY WILL DEVELOP IN A SUSTAINED WAY AND CHINA'S PEACEFUL AND INDEPENDENT FOREIGN POLICY WILL REMAIN UNCHANGED THE CONSISTENCY AND INDEPENDENCE OF CHINA'S POLICIES WERE RECURRENT THEMES IN THE REMARKS BY MR QIAN A POLISHED LONGTIME DIPLOMAT BY CONTRAST HE ASSERTED THE US HAS BROKEN PAST ACCORDS HE ARGUED THAT THE CLINTON ADMINISTRATION'S NEW LIMITED TRADE BANS VIOLATE AN UNDERSTANDING HE REACHED IN 1991 WITH FORMER US SECRETARY OF STATE JAMES A BAKER III UNDER IT THE US LIFTED SIMILAR SANCTIONS IT HAD IMPOSED AFTER BEIJING CRUSHED PRODEMOCRACY DEMONSTRATIONS IN JUNE 1989 IN EXCHANGE CHINA AGREED TO COMPLY WITH THE MISSILE TECHNOLOGY CONTROL REGIME AN ACCORD DESIGNED TO LIMIT THE SPREAD OF MISSILE TECHNOLOGY MR QIAN INSISTS CHINA DID COMPLY AND SAID BOTH CHINA AND PAKISTAN MADE A NUMBER OF CLARIFICATIONS ABOUT THE SUPPOSED M11 SALES THAT WASHINGTON REFUSED TO LISTEN TO IN SUCH CIRCUMSTANCES WE CANNOT BUT CONSIDER WHETHER OUR COMMITMENT TO ADHERE TO THE MTCR SHOULD CONTINUE TO BE VALID MR QIAN WARNED HE ALSO SAID CHINA WOULD LODGE A FORMAL PROTEST WITH THE US OVER THE SANCTIONS THE LATEST US ACTION IS PART OF WHAT MR QIAN AND OTHER LEADERS BRISTLINGLY CONSIDER A PATTERN OF INTERFERENCE IN CHINESE AFFAIRS HE CITED A US CONGRESSIONAL REPORT THAT HE SAID ESTIMATED THE VALUE OF US ARMS EXPORTS AT 136 BILLION OR 56 OF THE WORLD'S ARMS TRADE WHILE CHINA'S MILITARY EXPORTS WERE PUT AT 100 MILLION LAST YEAR HE COMPLAINED US SALES INCLUDED 150 F16 JET FIGHTERS TO TAIWAN DESPITE A US PROMISE IT WOULDN'T ARM BEIJING'S ERSTWHILE POLITICAL RIVALS IN TAIPEI THERE IS A SAYING IN CHINA WHICH GOES THE MAGISTRATES ARE ALLOWED TO SET FIRE BUT THE ORDINARY PEOPLE AREN'T EVEN ALLOWED TO LIGHT THEIR LAMPS' MR QIAN SAID THIS IS WHAT WE MEAN WHEN WE SAY THAT US POLICY TOWARD CHINA ISN'T FAIR AND IT IS UNEQUAL ANOTHER SENSITIVE AREA WHERE WASHINGTON UNFAIRLY ATTEMPTS TO IMPOSE ITS VIEWS IS ON HUMAN RIGHTS MR QIAN SAID THE US HAS BEEN CONSISTENTLY CRITICAL OF CHINA'S POLICIES OF SUPRESSING DISSENT AND SOMETIMES JAILING OR EXILING DISSIDENTS SOME COMPLAINTS HE SAID ARE ABSURD SUCH AS OBJECTIONS TO FAMILYPLANNING POLICIES IN CHINA WHICH HAS A POPULATION OF NEARLY 12 BILLION MR QIAN SAID CHINA IS SEEKING TO MANAGE ITS OWN AFFAIRS WELL AND OPPOSES ATTEMPTS BY THE US OR OTHER COUNTRIES TO IMPOSE THEIR VALUES OR LEGAL NOTIONS ON IT HE VOICED ANNOYANCE AT THE US CONGRESS'S PASSAGE OF A RESOLUTION URGING THE INTERNATIONAL OLYMPIC COMMITTEE TO TURN DOWN BEIJING'S BID TO HOST THE OLYMPICS IN THE YEAR 2000 THE WORLD IS A DIVERSE PLACE ASIA EUROPE AND THE AMERICAS HAVE ALL THEIR DIFFERENT CHARACTERISTICS MR QIAN SAID I THINK IT NECESSARY TO ADOPT A MORE GENEROUS AND MORE DEMOCRATIC ATTITUDE BY ALLOWING THE EXISTENCE OF DIFFERENT CULTURES TRADITIONS AND VIEWPOINTS ALREADY HE SAID ECONOMIC REFORMS ARE FORCING ONCECOMMUNIST CHINA TO ADOPT A MORE DEMOCRATIC LAWBASED SYSTEM PEOPLE NEED CERTAIN LAWS IN ECONOMIC MATTERS MR QIAN SAID NOTING THAT CHINA HAS INTRODUCED 140 NATIONAL LAWS IN THE PAST YEAR MOREOVER THE ECONOMIC REFORM IS DIFFICULT FOR US TO DO WITHOUT A TRANSPARENT DECISIONMAKING PROCESS ECONOMIC POLICY MUST BE CONDUCTED DEMOCRATICALLY HE SAID ADDING THAT CHINA WILL NOT COPY THE SYSTEM OF OTHER COUNTRIES SUCH REFORMS HAVE HELPED CHINA'S ECONOMY TO BECOME THE WORLD'S FASTEST GROWING EXPANDING AT AN 89 AVERAGE ANNUAL RATE OVER THE PAST 15 YEARS ALONG CHINA'S COAST THE BOOM HAS SPURRED VAST CONSTRUCTION AND FOREIGN INVESTMENT THE TRANSFORMATION INTO A FREEMARKET ECONOMY HAS ALSO BROUGHT WIDESPREAD DISORDER AND A LOSS OF CENTRAL CONTROL TO MANY REGIONS SINCE JUNE THE GOVERNMENT HAS BEEN ENGAGED IN A MASSIVE CAMPAIGN TO BRING THE ECONOMY BACK INTO LINE AND DISCOURAGE RAMPANT REALESTATE AND FINANCIAL SPECULATION AS WELL AS CORRUPTION MR QIAN SAID A LARGE AMOUNT OF MONEY IS NOW GOING INTO AGRICULTURE AND INFRASTRUCTURE AND CORRUPTION SMUGGLING AND SPECULATION ARE GRADUALLY DECREASING THESE THINGS SHOULD INDEED BE STOPPED HE SAID HOWEVER ONE CANNOT EXPECT A TOTAL SOLUTION WITHIN A SHORT PERIOD OF TIME AND TO A CERTAIN EXTENT IT IS NATURAL THAT SUCH THINGS MAY OCCUR IN THE COURSE OF ECONOMIC DEVELOPMENT THAT IS WHY WE MUST MAKE AN UNSWERVING EFFORT IN THIS REGARD WE HAVE TO WORK CONSTANTLY MR QIAN CAUTIONED AGAINST INTERPRETING BEIJING'S EFFORTS TO CONTROL THE ECONOMY AS RETRENCHMENT WE ARE TRYING TO GET A SUSTAINED ECONOMIC DEVELOPMENT SO WE CAN HAVE AN ECONOMIC TAKEOFF HE SAID IT'S JUST LIKE DRIVING A CAR WHERE YOU HAVE TO USE BOTH THE BRAKE AND THE GEAR IF WE KEEP USING THE HIGH GEAR IN DRIVING THE CAR IT WILL BE DANGEROUS HE WAS QUICK TO POINT OUT THAT SUCH BRAKING MEASURES WOULDN'T DAMAGE THE INTERESTS OF FOREIGN INVESTORS THIS POLICY OF OURS WILL REMAIN UNCHANGED FOR 100 YEARS HE VOWED 9308270031 930827 NOTABLE & QUOTABLE FROM A SPEECH THIS WEEK TO THE SECURITY COUNCIL BY DIEGO ARRIA VENEZUELA'S PERMANENT REPRESENTATIVE TO THE UN WHO STEPPED DOWN THIS WEEK FROM LORD CARRINGTON'S NEGOTIATIONS TO THE VANCEOWEN PEACE PLAN BOSNIAHERZEGOVINA'S TRAGEDY HAS ACCELERATED DOWNHILL TO AN ETHNIC PARTITION A CERTAIN APARTHEID MODALITY THAT FUNCTIONS NOT ANYMORE AS A PEACE PLAN BUT AS A PLAIN DEAL WE HAVE THE IMPRESSION THAT THERE IS AN INTEREST IN TERMINATING THIS MATTER AT ANY PRICE 9308270030 930827 OTC FOCUS SOFTWARE COMPUTER NETWORKING ISSUES LEAD STOCKS LOWER DESPITE BOND RALLY BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK PURGES AMONG SOFTWARE AND COMPUTER NETWORKING STOCKS COST THE NASDAQ MARKET A CHANCE AT FURTHER GAINS ALTHOUGH BOND PRICES PRESSED HIGHER TO PROVIDE SOME SUPPORT THE NASDAQ COMPOSITE INDEX DROPPED ABOUT 6 POINTS INTRADAY BUT WAS ABLE TO RECOUP PART OF ITS LOSS ON A BOND MARKET SURGE THE BAROMETER FINISHED 227 POINTS OR 031 LOWER AT 73139 DECLINING ISSUES BEAT OUT ADVANCERS 1476 TO 1301 TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME WAS 247474500 SHARES ABOVE THE 272474000 SHARES TRADED WEDNESDAY IN THE SOFTWARE GROUP MONTGOMERY SECURITIES REPORTEDLY DOWNGRADED ORACLE SYBASE PROGRESS SOFTWARE AND INFORMIX ORACLE FELL 4 3/8 TO 50 3/8 SYBASE 6 TO 60 PROGRESS SOFTWARE 2 1/2 TO 47 3/4 AND INFORMIX 1 TO 20 AMONG NETWORKERS NOVELL LOST 2 1/8 TO 19 1/8 FIRST BOSTON CORP DOWNGRADED THE PROVO UTAH COMPANY TO BUY FROM STRONG BUY ANALYST PAUL JOHNSON SAID BASED ON WEDNESDAY'S FISCAL THIRDQUARTER PROFIT REPORT NOVELL'S EARNINGS PROBABLY WILL BE MORE DISAPPOINTING THAN EXPECTED NOVELL REPORTED A LOSS OF 80 CENTS A SHARE ON A ONETIME WRITEOFF CHARGE COMPARED WITH NET INCOME OF 21 CENTS A YEAR AGO NOVELL WAS THE DAY'S MOST ACTIVE ISSUE WITH VOLUME OF ABOUT 136 MILLION SHARES ABOUT TRIPLE THE AVERAGE DAILY NUMBER A COUPLE OF TECH STOCKS CAME UNDER PRESSURE BRINGING EVERYTHING DOWN WITH THEM SAID LANCE ZIPPER MANAGER OF NASDAQ TRADING AT KIDDER PEABODY & CO ZIPPER SAID HIS ORDER FLOW WAS ABOUT FOUR TO ONE ON THE BUY SIDE IN ADDITION SOME TRADERS SAID OTC STOCKS MIGHT BE DUE FOR A PULLBACK THE MARKET'S VERY TIRED SAID CHRIS MCLELLAN MANAGING DIRECTOR IN CHARGE OF TRADING AT ROBERTSON STEPHENS & CO MOHAWK INDUSTRIES FELL 1 TO 28 1/4 FOLLOWING AN INTERSTATE/JOHNSON LANE DOWNGRADE TO SELL FROM BUY THE BROKERAGE FIRM SAID THE ATLANTA CARPET MAKER'S STOCK HAS BEEN STRONG RECENTLY RISING TO PREMIUM VALUATION LEVELS IT SAID ARE NOT JUSTIFIED BY THE FUNDAMENTALS IN THE MEDICALRELATED SECTOR SCIMED LIFE SYSTEMS SAGGED 1 3/8 TO 54 3/4 THE MAPLE GROVE MINN MAKER OF DISPOSABLE MEDICAL PRODUCTS REPORTEDLY LOST GROUND DUE TO A SHORTSALE RECOMMENDATION ON THE PROFESSIONAL TAPE READER HOTLINE ALLIED CLINICAL LABORATORIES SANK 2 5/8 TO 18 3/4 THE NASHVILLE TENN COMPANY SAID IT HAS RECEIVED NOTICE THAT IT WILL RECEIVE A SUBPOENA FROM THE OFFICE OF THE INSPECTOR GENERAL OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES REQUESTING DOCUMENTS IN CONNECTION WITH AN INVESTIGATION AND INTERNAL REVIEW AMONG INTERESTRATE SENSITIVE STOCKS NEWORLD BANCORP OF BOSTON ROSE 1 TO 24 3/4 SALOMON BROTHERS INC UPGRADED THE COMPANY'S SHARES TO BUY FROM HOLD SALOMON ALSO RAISED ITS 1993 PERSHARE EARNINGS ESTIMATE TO 2 FROM 124 AND ITS 1994 PROJECTION TO 280 FROM 140 MEANWHILE NEWS THAT PEOPLES BANCORP OF WORCESTER WILL BE ACQUIRED BY SHAWMUT NATIONAL SENT ITS STOCK SOARING 9 TO 47 1/2 SHAWMUT WHICH DECLINED 1 TO 23 ON THE BIG BOARD WILL PAY ABOUT 180 MILLION IN A STOCK SWAP THE NASDAQ BANK INDEX ROSE 146 TO A NEW RECORD OF 66585 THE NASDAQ OTHER FINANCE INDEX ALSO HIT A NEW RECORD CLIMBING 625 POINTS TO 88436 BOTH INDEXES HAD REACHED PREVIOUS HIGHS WEDNESDAY 9308270028 930827 BUSINESS BRIEF ROY F WESTON INC UNIT IS CHOSEN TO PARTICIPATE IN WATER PROGRAM IN TAIWAN THE TAIWAN PROVINCIAL ENVIRONMENTAL PROTECTION AGENCY HAS SELECTED ROY F WESTON INC'S WESTON INTERNATIONAL UNIT TO PARTICIPATE IN THE DEVELOPMENT OF A MASTER PLAN FOR GROUNDWATER QUALITY MONITORING THROUGHOUT TAIWAN IN A NEWS RELEASE THE COMPANY SAID THE 13 MILLION CONTRACT FOR THE 15MONTH PROGRAM IS WORTH 300000 TO WESTON BASED IN WEST CHESTER PA WESTON AND CTCI CORP A TAIWANBASED ENGINEERING COMPANY WILL ASSESS LONGTERM GROUNDWATER QUALITY AVAILABILITY AND POTENTIAL CONTAMINATION AT 10 OF THE NATION'S PRIMARY GROUNDWATER BASINS THE CTCIWESTON TEAM WILL DEVELOP THE MASTER MONITORING STRATEGY AND REGIONAL PLANS DESIGN AND IMPLEMENT A COMPUTERBASED POLLUTION HAZARD ASSESSMENT MODEL AS WELL AS ESTABLISH A NETWORK OF GROUNDWATER MONITORING STATIONS WESTON SAID 9308270027 930827 BUSINESS BRIEF TEXAS INSTRUMENTS INC DEPOSITARY SHARE REPURCHASE IS SLATED FOR LATE SEPTEMBER TEXAS INSTRUMENTS INC SAID IT WILL REDEEM THE REMAINING 37 MILLION SHARES OUTSTANDING OF ITS 226 DEPOSITARY SHARES ON SEPT 27 FOR STOCK AND CASH VALUED AT ABOUT 150 MILLION THE SEMICONDUCTOR AND ELECTRONICS COMPANY IN DALLAS SAID IT WILL ISSUE ABOUT 049 OF A COMMON SHARE PLUS ABOUT 358 CENTS TO REDEEM EACH SHARE THE PAYOUT REPRESENTS A CALL PRICE OF 4036 FOR EACH DEPOSITARY SHARE PLUS AN AMOUNT IN CASH EQUAL TO THE ACCRUED AND UNPAID DIVIDEND FROM AUG 1 THROUGH SEPT 27 TEXAS INSTRUMENTS SAID THE DEPOSITARY SHARES WHICH TRADE ON THE NEW YORK STOCK EXCHANGE REPRESENT ONEFOURTH OF A SHARE OF SERIES A CONVERTIBLE PREFERRED STOCK THE COMPANY SAID THE NUMBER OF COMMON SHARES REDEEMED FOR EACH DEPOSITARY SHARE IS BASED ON A STOCK PRICE OF 81975 A SHARE THE AVERAGE CLOSING PRICE OF ITS STOCK ON THE BIG BOARD OVER A FIVEDAY PERIOD ENDING AUG 24 YESTERDAY THE STOCK CLOSED AT 80375 A SHARE DOWN 1875 IN COMPOSITE TRADING 9308270026 930827 INTERNATIONAL BRIEF GUARDIAN ROYAL EXCHANGE PLC INSURER REPORTS PRETAX PROFIT OF 65 MILLION FOR FIRST HALF GUARDIAN ROYAL EXCHANGE PLC LONDON A GENERAL AND LIFE INSURER SAID IT SWUNG TO A PRETAX PROFIT OF 65 MILLION 96 MILLION EXCLUDING INVESTMENT GAINS IN THE FIRST HALF FROM A 39 MILLION LOSS A YEAR EARLIER AS UNITED KINGDOM UNDERWRITING LOSSES NARROWED TO 40 MILLION FROM 125 MILLION WITH AN UNDERWRITING PROFIT IN THE SECOND QUARTER THE HALFYEAR PRETAX PROFIT OF 65 MILLION WAS AT THE BOTTOM OF A WIDE RANGE OF PRIOR MARKET ESTIMATES BETWEEN 60 MILLION AND 175 MILLION BUT GUARDIAN'S DECISION TO RAISE ITS DIVIDEND BY 60 TO 265 PENCE A SHARE FROM 250 PENCE WAS EXPECTED BY ONLY SOME INDUSTRY ANALYSTS THE INCREASED PAYMENT IS FROM A PREVIOUSLY REDUCED BASE GUARDIAN CUT ITS ANNUAL DIVIDEND TO 70 PENCE FROM 119 PENCE IN 1991 AND MAINTAINED THAT PAYMENT IN 1992 9308270025 930827 MEDIA CABLE FIRMS PUSH TO SHORTCIRCUIT '92 LAW BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE CABLE LAW THAT TAKES EFFECT NEXT WEEK GRANTS BROAD NEW POWERS OVER RATE REGULATION TO LOCAL GOVERNMENTS BUT DOZENS OF CABLETV SYSTEMS ARE TRYING TO SIDESTEP THE LAW BY URGING LOCAL OFFICIALS TO FORGO EXERCISING THEIR NEW AUTHORITY THE SYSTEMS MOSTLY OPERATORS IN SMALL MARKETS HAVE MOUNTED A CAMPAIGN TO CONVINCE LOCAL OFFICIALS THAT THE 1992 CABLE ACT IS TOO COMPLICATED TO UNDERSTAND TOO COSTLY TO ENFORCE AND ULTIMATELY MORE EXPENSIVE FOR CONSUMERS INSTEAD OF BOWING TO THE REREGULATION OF THE NEW LAW WHICH SETS UP A FRAMEWORK OF RULES TO DETERMINE CABLETV RATES THE CABLE EXECUTIVES HOPE TO PERSUADE AUTHORITIES IN SMALLER MARKETS TO SIGN CONTRACTS THAT BASICALLY WOULD CONTINUE THE PRACTICE OF SETTING RATES THROUGH NEGOTIATIONS BETWEEN THE COMPANY AND A MUNICIPALITY THAT WOULD BE MORE DIFFICULT FOR FEDERAL REGULATORS TO MONITOR REGULATORS AND CRITICS SAY MANY OF THE OFFERS MADE BY CABLE OPERATORS ARE LACED WITH OVERREACHING CLAIMS ABOUT POSSIBLE CONSEQUENCES IF THE RULES ARE ADOPTED SUCH AS THREATS THAT SERVICE COULD BE DISRUPTED MOREOVER IT ISN'T CLEAR WHETHER THE LOCAL CONTRACTS THAT CABLE OFFICIALS ARE PUSHING ARE ENFORCEABLE OR EVEN LEGAL THE CABLE INDUSTRY LOST THIS FIGHT OVERWHELMINGLY IN THE HOUSE AND THE SENATE SAYS JAMES QUELLO ACTING FEDERAL COMMUNICATIONS COMMISSION CHAIRMAN NOW HE COMPLAINS MANY CABLE OPERATORS HAVE AN ECONOMIC STAKE IN DISCREDITING THAT LAW THE CABLE CAMPAIGN IS BEYOND CHUTZPAH IT'S EVASION SAYS BARRY ORTON A UNIVERSITY OF WISCONSIN PROFESSOR OF TELECOMMUNICATIONS WHO ADVISES LOCAL GOVERNMENTS NOTING THAT CABLE SYSTEMS ESSENTIALLY ARE PUSHING TOWNS TO GIVE UP THE NEW REGULATORY AUTHORITY THE CABLE ACT OTHERWISE GRANTS THEM HE ADDS SMALL LOCAL GOVERNMENTS DON'T HAVE THE WHEREWITHAL TO FIGURE OUT WHEN THEY'RE BEING DUPED CABLE EXECUTIVES COUNTER THAT THEY ARE SIMPLY OFFERING AN ATTRACTIVE OPTION TO SMALL TOWNS THAT CAN'T COPE WITH THE THICKET OF NEW RULES THEY ADD THAT SOME TOWNS EAGERLY ACCEPTED THE CABLE OFFERS AND IN SOME CASES INITIATED THE TALKS IN ADDITION CABLE OFFICIALS POINT OUT THAT TOWNS THAT DON'T LIKE HOW THE ARRANGEMENTS WORK OUT CAN ADOPT THE NEW AUTHORITY LATER THE CABLE ACT OF 1992 IMPOSES NEW LOCAL REGULATORY POWERS OVER AN INDUSTRY THAT WAS LARGELY FREED OF MOST RATE RESTRICTIONS BACK IN 1987 THE FCC IN SETTING OUT HUNDREDS OF DETAILED RULES TO ENFORCE THE NEW LAW ESTABLISHED GUIDELINES THAT CALL FOR AN AVERAGE 10 RATE REDUCTION AND ESTIMATED SAVINGS OF 1 BILLION BUT TO EXERCISE THE NEW POWERS LOCAL GOVERNMENTS MUST FORMALLY CERTIFY WITH THE FCC THAT THEY WILL BE RESPONSIBLE FOR ENFORCING THE LAW IF THEY DON'T CERTIFY AS CABLE SYSTEMS HOPE THE FCC ITSELF WOULD HAVE TO MONITOR SUCH SYSTEMS THAT WOULD RESULT IN A FAR LOWER LEVEL OF SCRUTINY AND ENFORCEMENT BY AN AGENCY BASED IN WASHINGTON AND BUSY WITH HUNDREDS OF OTHER REGULATORY DUTIES IN TRYING TO PERSUADE LOCAL AUTHORITIES TO FORGO FCC CERTIFICATION CABLE SYSTEMS HAVE OFFERED INCENTIVES SUCH AS IMPROVED SERVICE ADVANCE PAYMENTS TO MUNICIPALITIES AND TEMPORARY RATE FREEZES SOME OPERATORS HAVE GONE SO FAR AS TO PREPARE DRAFT ORDINANCES READY FOR ADOPTION THESE OFFERS ARE A HOLLOW ARGUMENT ASSERTS WILLIAM SQUADRON VICE PRESIDENT OF THE NATIONAL ASSOCIATION OF TELECOMMUNICATION OFFICERS AND ADVISERS A GROUP OF 4000 LOCAL REGULATORY AUTHORITIES AND IT'S BEING ORCHESTRATED IN MANY PARTS OF THE COUNTRY USUALLY IN AREAS THAT HAVE NEVER REALLY SPENT A LOT OF TIME STUDYING CABLE REGULATION AT TIMES THE CABLE CLAIMS CONTAIN DIRE PREDICTIONS ABOUT THE CONSEQUENCES OF THE NEW LAW FOR EXAMPLE IN A BID TO WOO OFFICIALS IN ALACHUA COUNTY FLA LOCAL OPERATOR JAMES CABLE PARTNERS BESIDES HOLDING OUT THE CARROT OF A RATE FREEZE UNTIL OCT 1 1994 ALSO BRANDISHED A STICK INSISTING THAT THE NEW LAW WOULD REQUIRE INCREASES IN CABLE RATES TO OFFSET REDUCTIONS IN CHARGES FOR CONVERTER BOXES AND ADDITIONAL OUTLETS THAT IS BLATANTLY FALSE THE FCC SAYS TO EVEN IMPLY THAT THE GOVERNMENT IS REQUIRING COMPANIES TO RAISE RATES IS AS WRONG AS HELL MR QUELLO THE FCC CHAIRMAN FUMES IT CERTAINLY SEEMS TO CONTRADICT THE INTENT OF THE LAW AND CONGRESS THE JAMES CABLE PITCH DIDN'T WORK IN ALACHUA COUNTY WHICH DECLINED THE COMPANY'S OFFER LAST WEEK BUT ABOUT 50 TOWNS SERVED BY JAMES CABLE ALREADY HAVE SIGNED THE COMPANY'S AGREEMENT SO FAR WILLIAM JAMES AN OWNER SAYS HIS COMPANY IS MERELY GIVING MUNICIPALITIES AN ALTERNATIVE TO THE NEW CABLE LAW HE FURTHER CONTENDS THE NEW FCC RESTRICTIONS WILL FORCE A RATE INCREASE OF ABOUT 2 A MONTH FOR MORE THAN 70 OF HIS ALMOST 80000 SUBSCRIBERS IN 148 SYSTEMS THE NATION'S BIGGEST CABLE OPERATORS WHICH RUN SYSTEMS IN MANY OF THE LARGEST MARKETS AREN'T PUSHING THE DON'T CERTIFY OPTION AS HARD BIG CITY GOVERNMENTS HAVE MORE RESOURCES AND AREN'T AS EAGER TO GIVE UP THE NEW LAW'S AUTHORITY BUT THE ANTIREGULATORY PITCH AS PLIED BY SMALLER OPERATORS HAS APPEAL IN SMALLER MARKETS WHERE LOCAL GOVERNMENTS ARE ILLEQUIPPED TO HANDLE A REGULATORY FIGHT THE TOWN OF DECATUR TEXAS ACCEPTED JAMES CABLE'S OFFER BRETT SHANNON CITY SECRETARY NOTES THE CITY HAS NO LEGAL STAFF AND RECEIVES ONLY 12000 A YEAR IN CABLE FRANCHISE FEES THAT COULD BE EATEN UP QUICKLY IF THE CITY CLASHED WITH THE COMPANY OVER A RATE INCREASE AND HAD TO HIRE CONSULTANTS TO HELP ITS CASE HE SAYS IN THE SMALL CITY OF ATOKA OKLA HOWEVER CITY MANAGER MARTHA YATES TURNED DOWN THE JAMES CABLE OFFER SHE DIDN'T APPRECIATE JAMES CABLE'S PROPOSED ORDINANCE SAYING AN ACT OF CONGRESS DOES NOT SERVE THE PUBLIC INTEREST SHE SAYS THEY TRIED TO MAKE IT LOOK ATTRACTIVE AND PUSH US INTO DOING IT QUICKLY BUT WE WANT TO DO WHAT'S BEST FOR OUR CITIZENS ANOTHER CABLE OPERATOR MARCUS CABLE PARTNERS LP WANTED TO IMPRESS UPON LOCAL AUTHORITIES JUST HOW ONEROUS THE NEW FCC RULES ARE SO IT MAILED COPIES OF THE FCC'S 500PAGE RATEREGULATION MANUAL TO MANY TOWNS IT SERVES IN AN ACCOMPANYING LETTER MARCUS SAYS THE LAW IS A HODGEPODGE OF RULES REQUIREMENTS EDICTS AND DICTATES AND IS IN A WORD LUDICROUS MARCUS ALSO WARNED ITS LOCALES THAT IF THEY EMBRACE THE NEW FCC RULES THE COMPANY MAY STOP MAKING CAPITAL IMPROVEMENTS CEASE A HIGH LEVEL OF SERVICE AND LAY OFF WORKERS AND CLOSE SMALL OFFICES THE CABLE FIRM FURTHER WARNED OF SOME SIGNIFICANT DISRUPTIONS IN OUR CABLE SERVICE TO THE COMMUNITY BUT MARCUS HAS A BAG OF GOODIES FOR TOWNS THAT DON'T CERTIFY OVER THE NEXT TWO YEARS THE CABLE FIRM WOULD ELIMINATE CHARGES FOR ADDITIONAL OUTLETS REDUCE EQUIPMENT RENTAL CHARGES AND FREEZE INSTALLATION FEES SOME EXPERTS SAY SUCH PROMISES FOR THE MOST PART SIMPLY FALL IN LINE WITH THE CABLE LAW 9308270024 930827 BUSINESS BRIEF CAMPBELL SOUP CO ARNOTTS UNIT POSTS 18 RISE IN YEAR'S OPERATING PROFIT ARNOTTS LTD AN AUSTRALIAN COOKIE AND CRACKER MAKER THAT IS 58OWNED BY CAMPBELL SOUP CO OF THE US REPORTED THAT OPERATING PROFIT AFTER TAX AND EXTRAORDINARY ITEMS ROSE 18 TO 472 MILLION AUSTRALIAN DOLLARS 318 MILLION IN THE FISCAL YEAR ENDED JUNE 30 ARNOTTS RECORDED AN EXTRAORDINARY LOSS OF A209 MILLION COMPARED WITH AN EXTRAORDINARY LOSS OF A13 MILLION IN THE PREVIOUS YEAR THE LATEST YEAR'S LOSS IS MADE UP MAINLY OF A A48 MILLION DEVALUATION OF ASSETS AND INVESTMENTS AND A A273 MILLION PROFIT ON THE SALE OF THE COMPANY'S WHITE ROSE FLOUR MILL ITS PACKAGING BUSINESS CELTHENE LTD AND ARNPAK BUSINESS SALES ROSE 69 TO A6417 MILLION FROM A6005 MILLION SALES FIGURES WERE ADJUSTED FOR THE EXCLUSION OF SALES REVENUE FROM DIVESTED NONCORE ASSETS A REDUCTION IN THE BOOK VALUE OF ARNOTTS'S MACADAMIA NUT BUSINESS REPRESENTED THE BULK OF THE ASSET/INVESTMENT DEVALUATION DIRECTORS BELIEVE THAT WHILE THE REDUCTION MAY APPEAR GREATER THAN WARRANTED THE CONSERVATIVE APPROACH TO THE MACADAMIA BUSINESS SHOULD ELIMINATE ANY FURTHER NEED TO WRITE DOWN ASSETS THE COMPANY SAID 9308270023 930827 BUSINESS BRIEF INTERTAN INC DEBTRESTRUCTURING TERMS ARE NEGOTIATED WITH TANDY INTERTAN INC SAID IT REACHED AN AGREEMENT WITH TANDY CORP ON THE TERMS OF A 42 MILLION DEBT RESTRUCTURING THE DEBT WHICH TANDY ACQUIRED FROM INTERTAN'S BANK SYNDICATE IS REPAYABLE OVER SIX YEARS BEGINNING IN 1995 AS PART OF THE AGREEMENT TANDY ALSO PROVIDED 10 MILLION OF ADDITIONAL TERM DEBT MATURING IN 1996 TANDY FORT WORTH TEXAS ALSO AGREED ON CREDIT TERMS FOR 25 MILLION OF INTERTAN'S ACCOUNTS RECEIVABLE THROUGH AUG 15 AND ON TEMPORARY CREDIT TERMS FOR ADDITIONAL MERCHANDISE SUPPLIED AFTER AUG 15 TANDY AGREED IN JULY TO ACQUIRE THE DEBT FROM INTERTAN BARRIE ONTARIO AFTER INTERTAN'S BANKS DEMANDED REPAYMENT OF 54 MILLION IN LOANS AND STOPPED CLEARING THE COMPANY'S CHECKS INTERTAN A MAJOR TANDY CUSTOMER FORMERLY COMPRISED THE FOREIGN RETAIL OPERATIONS OF TANDY AN ELECTRONICS RETAILER BEFORE IT WAS SPUN OFF IN 1987 9308270022 930827 CHOKEPOINTS COMPUTER MAKERS FACE HIDDEN VULNERABILITY SUPPLIER CONCENTRATION MANY OF THEIR CRUCIAL PARTS AND MATERIALS ARE MADE BY JUST A FEW FACTORIES TRACING THE PC'S INGREDIENTS BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL NIIHAMA JAPAN WHEN A TERRIFIC EXPLOSION RIPPED THROUGH A FACTORY HERE BLOWING OUT THE ROOF AND WALLS AND KILLING ONE WORKER ON JULY 4 THE SHOCK WASN'T LIMITED TO THE IMMEDIATE VICINITY IT QUICKLY PUSHED SPOT PRICES FOR COMPUTER MEMORY CHIPS UP 50 THE REASON THE PLANT MADE 65 OF THE WORLD'S SUPPLY OF A CHEMICAL USED TO SEAL MOST COMPUTER CHIPS INTO THEIR PLASTIC PACKAGES NOW THE PLANT'S BLACKENED SKELETON DRAMATICALLY ILLUSTRATES A LITTLERECOGNIZED VULNERABILITY OF THE WORLDWIDE ELECTRONICS INDUSTRY TO AN UNUSUAL DEGREE COMPETITION COSTCUTTING AND CONSOLIDATION HAVE DECIMATED THE RANKS OF SUPPLIERS THAT MAKE CRITICAL COMPONENTS MATERIALS OR TOOLS FOR COMPUTER MANUFACTURERS AS A RESULT THE ELECTRONICS INDUSTRY IS PLAGUED WITH NUMEROUS CHOKEPOINTS WHERE KEY ITEMS ARE PRODUCED IN JUST A FEW LOCATIONS WORLDWIDE MOSTLY IN JAPAN THE CONSEQUENT POTENTIAL FOR SHORTAGES AND PRICE INCREASES HAS MAJOR IMPLICATIONS NOT JUST FOR COMPUTER MAKERS AND THEIR CUSTOMERS BUT FOR BROADER ECONOMIC POLICY AS WELL THE EXPLOSION CAUSED WHEN A SOLVENT TANK BLEW UP REVERBERATED THROUGH THE WORLD'S SEMICONDUCTOR COMPANIES WITHOUT THE EPOXY CRESOL NOVOLAC RESIN MADE AT THE SUMITOMO CHEMICAL CO PLANT HERE IN SOUTHERN JAPAN CHIP MAKERS FACED THE ALTERNATIVES OF DELAYING PRODUCT SHIPMENTS SEALING CHIPS INTO FARCOSTLIER CERAMIC PACKAGES OR HALTING PRODUCTION THE VULNERABILITY ILLUSTRATED BY THE SUMITOMO CHEMICAL EXPLOSION IS THAT A DISPROPORTIONATE SHARE OF THE WORLD CAPACITY OF CERTAIN KEY MATERIALS MAY BE PRODUCED AT A SINGLE SITE SAYS SAM HARRELL CHIEF OF STRATEGY AT SEMATECH A US CHIP CONSORTIUM IN AUSTIN TEXAS THOSE SITES ARE VULNERABLE TO ACCIDENTS EARTHQUAKES OTHER NATURAL DISASTERS OR HUMAN ERROR SOME CHOKEPOINTS SUCH AS SUMITOMO CHEMICAL'S DOMINANCE OF THE EPOXY RESIN SUPPLY RESULTED WHEN LEADING MANUFACTURERS INVESTED SO HEAVILY IN RESEARCH AND DEVELOPMENT AS TO DISCOURAGE COMPETITORS OTHERS AROSE NATURALLY FROM THE ECONOMICS OF MANUFACTURING A RELATIVELY SMALL VOLUME OF A COMPLICATED PRODUCT STILL OTHERS EMERGED AFTER LEADING COMPANIES LOCKED OUT COMPETITION BY VIGOROUSLY PROTECTING THEIR INTELLECTUAL PROPERTY SOME OBSERVERS HOWEVER SEE CHOKEPOINTS AS ALMOST INEVITABLE IN THE ELECTRONICS INDUSTRY THEY NOTE THAT DEMAND FOR SOME PRODUCTS IS SO SMALL THERE'S ROOM FOR ONLY ONE SUPPLIER IN A LOT OF CASES THIS KIND OF CONCENTRATION TURNS OUT TO BE EFFICIENT SAYS G DAN HUTCHESON OF VLSI RESEARCH INC IN SAN JOSE CALIF OTHERS NOTE THE EXPENSE OF CREATING ADDITIONAL SOURCES WHAT DO YOU DO RECOMMEND THAT SUMITOMO CHEMICAL DIVERSIFY PRODUCTION AND RAISE COSTS ASKS PETER WOLFF AN ANALYST AT KIDDER PEABODY & CO IN TOKYO IT'S A LOT CHEAPER IF WE ASK THEM TO INSTALL SPRINKLERS WHETHER THE CONCENTRATION OF FACILITIES PRODUCING CRITICAL ITEMS IS VIEWED AS RISKY OR EFFICIENT SUCH CHOKEPOINTS ARE IN FACT NOW STREWN ACROSS ALMOST EVERY STAGE OF COMPUTER MANUFACTURING A SNAG AT ANY ONE COULD DERAIL PRODUCTION FORCE UP PRICES OR SERIOUSLY DELAY NEW PRODUCTS CONSIDER FOR INSTANCE AN AVERAGE PERSONAL COMPUTER THE PC'S MICROPROCESSOR AND A HANDFUL OF OTHER CHIPS ARE ENCASED IN CERAMIC PACKAGES MADE BY JAPAN'S KYOCERA CORP WHICH COMMANDS 70 OF THE WORLD MARKET AND MAKES HALF ITS PACKAGES AT A SINGLE PLANT IN KOKUBU JAPAN THE COMPUTER'S HARDDISK DRIVE HAS A DATAREADING HEAD OF MAGNETIC FERRITE SUPPLIED BY TDK CORP WHICH ACCOUNTS FOR AN ESTIMATED 45 GLOBAL MARKET SHARE FROM A SINGLE FACTORY IN KOFU JAPAN THAT'S JUST THE BEGINNING FOLLOW THE CHAIN OF SUPPLIERS BACK ANOTHER STEP THE DICING SAWS USED TO CUT THE PC'S CHIPS FROM SILICON WAFERS COME FROM JAPAN'S DISCO CORP WHICH BUILDS 70 OF THE SAWS AT ONLY TWO FACTORIES IN JAPAN THE CIRCUITS ON EVERY CHIP IN THE COMPUTER WERE PRINTED BY PRECISION TOOLS CALLED STEPPERS 50 TO 70 OF WHICH ARE MADE BY NIKON CORP AT A SINGLE FACTORY IN JAPAN'S SAITAMA PREFECTURE NOW TAKE ONE LAST STEP BACK THE DESIGN OF EVERY CIRCUIT ON EVERY CHIP WAS FIRST ENGRAVED AS A STENCILLIKE OUTLINE ON A QUARTZ PLATE CALLED A PHOTOMASK 40 OF WHICH DAI NIPPON PRINTING CO MAKES AT TWO FACTORIES IN JAPAN THE STEPPERS THAT FABRICATED THOSE CIRCUITS ALL USE SPECIAL ULTRAVIOLET LIGHT BULBS 70 OF WHICH ARE MADE BY USHIO INC AT A PLANT IN HARIMA JAPAN TWOTHIRDS OF THE WORLD'S BLANK QUARTZ PLATES FOR PHOTOMASKS ARE MADE BY HOYA CORP AT TWO LOCATIONS IN JAPAN SUCH EXAMPLES ARE MERELY AMONG THE MOST OBVIOUS MANY MORE MAY BE HIDDEN WITHIN THE MULTITUDE OF COMPANIES MAKING UP THE ELECTRONICS INDUSTRY'S INTRICATE SUPPLY BASE EVEN A SUPERFICIAL SCAN SUGGESTS THERE ARE MULTIPLE SITUATIONS OF THE SAME KIND WHERE THINGS CONVERGE TO A SINGLE SUPPLIER TWO TO THREE TIERS BACK FROM THE MAIN SUPPLIER SAYS ROBERT CLARY OF ROSE ASSOCIATES A CALIFORNIA CONSULTING FIRM SPECIALIZING IN ELECTRONIC MATERIALS NO ONE SEEMS TO KNOW EXACTLY WHERE MANY OF THOSE CHOKEPOINTS LIE THE FACT THAT EPOXY RESIN WAS CONCENTRATED IN ONE PLANT WAS A BIG SURPRISE TO US SAYS KENICHI TSUJI A PURCHASING MANAGER AT NEC CORP JAPAN'S POLICY EXPERTS AT THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY ARE BAFFLED TOO COUNTLESS MATERIALS ARE USED IN ELECTRONICS ONE SAYS COMMENTS A US OFFICIAL WHO HAS STUDIED BOTTLENECKS IN WEAPONS PRODUCTION EACH SYSTEM HAS THOUSANDS OF COMPANIES SUPPORTING IT AND TRACKING DOWN WHERE THE SECOND SOURCES ARE IS A BEAR AND SOME COMPANIES ABLE TO IDENTIFY CHOKEPOINTS DON'T WANT TO AT HITACHI CHEMICAL CO A MAJOR SUMITOMO CHEMICAL CUSTOMER FOR EPOXY RESIN AN AIDE REFUSES TO SAY WHETHER HITACHI CHEMICAL DEPENDS ON PARTICULAR SUPPLIERS FOR MORE THAN 50 OF ANY ONE ELECTRONICS CHEMICAL SAYING THE ANSWER MIGHT CAUSE UNDUE CONCERN ON THE PART OF OUR CUSTOMERS BECAUSE OF THE EXTREME PRECISION WITH WHICH CHIPS ARE MANUFACTURED EVEN MINOR DISRUPTIONS IN SUPPLY CAN CAUSE MAJOR PROBLEMS MOST MATERIALS USED IN CHIPMAKING ARE MADE TO EXTREMELY TIGHT SPECIFICATIONS ONE FORM OF A BASE MATERIAL FOR CHIPS IS KNOWN AS 119 POLYSILICON BECAUSE IT IS 99999999999 PURE IF A COMPANY HAS TO QUALIFY A NEW SUPPLIER FOR SUCH A MATERIAL THE JOB CAN TAKE MONTHS THE RISK IS MAGNIFIED WHEN FACTORIES ARE IN AREAS PRONE TO NATURAL DISASTERS TDK'S KOFU PLANT FOR INSTANCE LIES NEAR ONE OF THE TECTONIC PLATE BOUNDARIES THAT MAKE JAPAN NOTORIOUS FOR EARTHQUAKES FOR AN EXAMPLE OF THE PROBLEMS CAUSED BY DEPENDENCE ON A FEW SUPPLIERS LOOK NO FARTHER THAN THE US SPACE PROGRAM A 1988 EXPLOSION AT AN AMERICAN ENGINEERING & PRODUCTION CO CHEMICAL PLANT IN NEVADA DESTROYED HALF THE US PRODUCTION CAPACITY OF A CHEMICAL CRUCIAL TO SOLID ROCKET FUEL AND THE RESULTING SAFETY INSPECTION ALSO CLOSED DOWN THE OTHER SUPPLIER FOR NEARLY A MONTH HOWEVER NEW PRODUCTION WAS STARTED FAIRLY SOON AND THE SPACE PROGRAM SURVIVED VIRTUALLY UNSCATHED MAINLY BECAUSE IT WAS STILL MOVING SLOWLY AS A RESULT OF ANOTHER DISASTER THE CHALLENGER SPACESHUTTLE EXPLOSION ACCIDENTS AREN'T THE ONLY RISK IN 1988 AVTEX FIBERS FRONT ROYAL INC SHUT DOWN ITS VIRGINIA RAYON MILL AFTER PAYING WHAT IT SAID WERE MILLIONS OF DOLLARS TO RESOLVE ALLEGED ENVIRONMENTAL AND WORKPLACESAFETY VIOLATIONS A WEEK LATER THE US DEFENSE AND SPACE AGENCIES HAD TO OFFER AVTEX 38 MILLION TO REOPEN ITS FACTORY FOR A YEAR AFTER REALIZING IT WAS THE ONLY US PLANT THAT MADE A CARBONIZED RAYON FIBER USED TO INSULATE ROCKET NOZZLES THE ELECTRONICS INDUSTRY'S UNUSUAL VULNERABILITY IS ROOTED IN ITS SUCCESS FOR MOST OF THE PAST 30 YEARS SEMICONDUCTOR ENGINEERS HAVE DOUBLED THE CAPACITY OF MEMORY CHIPS EVERY THREE YEARS THIS RELENTLESS TECHNOLOGICAL ADVANCE COUPLED WITH DECLINING PRICES HAS PUT THE INDUSTRY'S SUPPLIERS UNDER ENORMOUS PRESSURE AND PUSHED MANY OUT OF THE BUSINESS THE INDUSTRY NEEDS RELATIVELY FEW SUPPLIERS MOREOVER BECAUSE THEIR PRODUCTION THOUGH IMPORTANT IS MODEST THEY ACCOUNT FOR ONLY 10 OF THE END PRODUCT'S FINAL VALUE IN AN INDUSTRY SUCH AS AUTO MAKING SUPPLIERS CONTRIBUTE ROUGHLY 70 OF THE TOTAL VALUE SAYS KAZUHIRO MISHINA A HARVARD BUSINESS PROFESSOR WHO HAS STUDIED BOTH INDUSTRIES YEAR BY YEAR THE NUMBER OF ELECTRONICS SUPPLIERS DECREASES SAYS TETSUO MACHII A SEMICONDUCTOR DIVISION MANAGER AT TOSHIBA CORP THE PRICE OF SEMICONDUCTORS KEEPS DECLINING SHARPLY AND OF COURSE WE ASK OUR VENDORS TO SUPPLY US AT REASONABLE' PRICES CONSOLIDATION IS A NATURAL RESULT ACCORDING TO ROSE ASSOCIATES SUMITOMO CHEMICAL IN 1984 HELD ONLY 25 OF THE GLOBAL EPOXY RESIN MARKET IT FACED TOUGH COMPETITION FROM TWO OTHER JAPANESE SUPPLIERS AND CIBAGEIGY CO AND ADDITIONAL CAPACITY WAS COMING ON LINE AT DOW CHEMICAL CO AND SHELL CHEMICAL CO SUBSEQUENTLY HOWEVER SUMITOMO CHEMICAL INVESTED HEAVILY IN IMPROVING THE PURITY OF ITS EPOXY RESIN MEANWHILE PRICES FELL THE FOREIGN COMPANIES LEFT THE MARKET AND EVEN SUMITOMO'S JAPANESE RIVALS FADED LEAVING IT WITH ONLY ONE COMPETITOR SUMITOMO CHEMICAL OFFICIALS NOW ADMIT THAT THEIR STRATEGY BACKFIRED PARTLY BECAUSE THE COMPANY'S JAPANESE BUSINESS RELATIONSHIPS HAVE INHIBITED IT FROM RAISING PRICES EPOXY RESIN HASN'T BEEN PROFITABLE FOR YEARS THAT IS ONE REASON THE COMPANY CONCENTRATED PRODUCTION AT THE SINGLE PLANT ALTHOUGH THE COMPANY NOW IS EXPECTED TO REOPEN AT LEAST ONE MANUFACTURING LINE HERE BY DECEMBER THE UNDERLYING ECONOMICS THAT INITIALLY CREATED THE PROBLEM HAVEN'T CHANGED FALLOUT FROM THE SUMITOMO CHEMICAL EXPLOSION HAS BEEN LIMITED TO THE MEMORYCHIP PRICE RISE THIS IS BECAUSE OF RESIN INVENTORIES AND ALSO BECAUSE TWO SUMITOMO LICENSEES ARE MOVING TO PRODUCE SOME RESIN BUT THESE CUSHIONS DON'T EXIST WITH MANY OTHER CRITICAL MATERIALS AND PARTS THE SUMITOMO CHEMICAL CASE RAISES ANOTHER ISSUE THE US DEPENDENCE ON JAPANESE SUPPLIERS MICHAEL BORRUS OF THE BERKELEY ROUNDTABLE ON THE INTERNATIONAL ECONOMY BLAMES MARKET EFFICIENCIES SUCH AS NIKON'S DOMINATION OF THE STEPPER BUSINESS ON DELIBERATE MOVES BY JAPANESE COMPANIES AND THE GOVERNMENT TO BUILD UP THEIR JAPANESE SUPPLIERS AT THE EXPENSE OF US SUPPLIERS ALTHOUGH THE US HAD LONG FRETTED OVER THE CONCENTRATION OF MILITARY SUPPLIERS IN JAPAN CHOKEPOINTS IN CIVILIAN MANUFACTURING WEREN'T A MAJOR WORRY UNTIL THE SUMITOMO EXPLOSION WE TEND NOT TO THINK ABOUT THESE THINGS UNTIL THERE'S A CRISIS SAYS ERIC PAGES AN ANALYST AT BUSINESS EXECUTIVES FOR NATIONAL SECURITY A WASHINGTONBASED THINK TANK NOW THE US SEMICONDUCTOR INDUSTRY ASSOCIATION WHICH HAS LONG WARNED ABOUT THE ERODING US SUPPLY BASE IN ELECTRONICS HAS ASKED SEMATECH THE CHIP CONSORTIUM TO STUDY CHIPMATERIAL SUPPLIERS IN ACCEPTING THE JOB SEMATECH AGREED TO TRY TO IDENTIFY BOTTLENECKS AND THEN CONVINCE KEY SUPPLIERS TO PRODUCE REDUNDANT CAPABILITY TO PREVENT SUCH DISASTERS IN THE FUTURE THE CONSORTIUM'S MR HARRELL SAYS HOW ALREADYSTRAPPED SUPPLIERS CAN GET THE FINANCIAL RESOURCES TO COMPLY ISN'T CLEAR THE OBVIOUS WAY GOVERNMENT INTERVENTION AND SUPPORT HAS DRAWBACKS THE SOLUTION IS YOU'VE GOT TO PAY SOMEONE TO BUILD THE EXTRA PLANT OR ASSUME OR HOPE THERE ARE DISPERSED SOURCES IN OTHER COUNTRIES MR PAGES SAYS THAT GETS YOU INTO THE WHOLE INDUSTRIALPOLICY THING AND THERE ARE ALL SORTS OF IDEOLOGICAL PROBLEMS WITH INVOLVING THE GOVERNMENT IN THAT KIND OF ACTIVITY 9308270021 930827 BUSINESS BRIEF BILFINGER & BERGER AG BUILDING VOLUME CLIMBS 7 GAIN OF 13 SEEN FOR YEAR GERMAN CONSTRUCTION AND ENGINEERING CONCERN BILFINGER & BERGER AG REPORTED THAT SIXMONTH GROUP CONSTRUCTION VOLUME ROSE 7 AND PREDICTED A GAIN FOR THE FULL YEAR OF ABOUT 13 THE FULLYEAR FORECAST IS SLIGHTLY LESS THAN THE ONE ISSUED LAST MONTH WHEN THE COMPANY'S CHAIRMAN FORECAST A 15 GAIN IN A REPORT TO SHAREHOLDERS BILFINGER PREDICTED FULLYEAR CONSTRUCTION VOLUME WOULD TOTAL ABOUT 68 BILLION MARKS 404 BILLION UP FROM 601 BILLION MARKS IN 1992 IN THE FIRST SIX MONTHS CONSTRUCTION VOLUME REACHED THREE BILLION MARKS UP FROM 281 BILLION MARKS A YEAR EARLIER DOMESTIC VOLUME ROSE 14 TO 173 BILLION MARKS WHILE BUSINESS OUTSIDE GERMANY DECLINED 15 TO 127 BILLION MARKS THE COMPANY SAID 9308270020 930827 BUSINESS BRIEF ST PAUL COS SETBACK IN COURT MAY COST IN EXCESS OF 1165 MILLION ST PAUL COS ST PAUL MINN WAS HIT BY A LEGAL DECISION THAT MAY COST THE INSURER IN EXCESS OF 1165 MILLION A CONTRA COSTA COUNTY CALIF JURY RULED THAT THE COMPANY'S ST PAUL FIRE & MARINE INSURANCE UNIT SHOULD PAY 165 MILLION IN COMPENSATORY DAMAGES ALONG WITH INTEREST AND 100 MILLION OF PUNITIVE DAMAGES ST PAUL SAID IT THINKS THE VERDICT IS NOT SUPPORTED BY THE EVIDENCE AND IT CALLED THE AWARD GROSSLY EXCESSIVE IT SAID IT WILL VIGOROUSLY APPEAL THE VERDICT THE TRIAL INVOLVED CLAIMS BY A CONTRACTOR ARNTZ CONTRACTING CO THAT THE COMPANY'S ST PAUL FIRE & MARINE UNIT FAILED TO ABIDE BY TERMS OF A CONTRACT CALLING FOR THE UNIT TO CONTINUE PROVIDING PERFORMANCE BONDS FOR THE PUBLICWORKS CONTRACTOR IN THE WAKE OF ARNTZ'S REMOVAL FROM A CONTRACT 9308270019 930827 BUSINESS BRIEF CULLEN/FROST BANKERS INC COMPANY WILL TRADE BANKS WITH A CHEMICAL SUBSIDIARY CULLEN/FROST BANKERS INC SAN ANTONIO TEXAS SAID IT WILL TRADE ITS DALLAS BANK TO TEXAS COMMERCE BANCSHARES A UNIT OF NEW YORKBASED CHEMICAL BANKING CORP FOR TEXAS COMMERCE'S BANK IN CORPUS CHRISTI TEXAS CHAIRMAN TC FROST SAID THE SWAP OF BANKS SIMILAR IN ASSET SIZE WOULD ENHANCE MARKET SHARE FOR BOTH FIRMS AND HAVE MINIMAL FINANCIAL IMPACT IT WILL ALSO FOCUS CULLEN/FROST'S OPERATIONS IN THE CENTRAL AND SOUTHERN PART OF TEXAS THE COMPANY ALSO SAID IT WOULD CONSOLIDATE OPERATIONS IN HOUSTON BY CONVERTING CULLEN BANKS THERE TO BRANCHES OF FROST BANK THE CORPORATION'S LEAD BANK RESTRUCTURING COSTS OF ABOUT 1 MILLION WILL BE CHARGED TO OPERATIONS THIS YEAR AND EXPENSES IN THE FUTURE SHOULD BE REDUCED BY 2 MILLION ANNUALLY THE COMPANY SAID 9308270018 930827 BUSINESS BRIEF WESTERN WASTE INDUSTRIES COMPANY FIRMS ARE IN TALKS FOR POSSIBLE MERGER OR LINK WESTERN WASTE INDUSTRIES SAID IT IS ENGAGED IN VERY PRELIMINARY DISCUSSIONS WITH OTHER COMPANIES REGARDING A POSSIBLE MERGER OR OTHER BUSINESS COMBINATION IT DECLINED TO IDENTIFY ANY OF THE COMPANIES INVOLVED THE TORRANCE CALIF SOLIDWASTE MANAGEMENT COMPANY MADE THE ANNOUNCEMENT IN RESPONSE TO ACTIVITY IN ITS STOCK WHICH CLOSED AT 1325 UP 2 OR 18 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE WESTERN WASTE STRESSED THAT NO AGREEMENTS HAVE BEEN REACHED NOR CAN ANY ASSURANCE BE GIVEN THAT ANY AGREEMENTS WILL BE REACHED THE COMPANY HAD REVENUE OF 2194 MILLION FOR THE FISCAL YEAR ENDED JUNE 30 1992 AND 1725 MILLION FOR THE FIRST NINE MONTHS OF 1993 THE COMPANY SAID IT EXPECTS TO POST RESULTS FOR FISCAL 1993 NEXT MONTH 9308270017 930827 BUSINESS BRIEF LEGENT CORP ACQUISITION AND MERGER PLAN FOR NETWORX IS SET IN MOTION LEGENT CORP SAID IT HAS SIGNED A LETTER OF INTENT TO MERGE OPERATIONS AND ACQUIRE THE ASSETS OF NETWORX INC A DEVELOPER OF PROBLEM MANAGEMENT APPLICATIONS FOR CLIENT/SERVER COMPUTING TERMS WERE NOT DISCLOSED SAN FRANCISCOBASED LEGENT SAID COMPLETION OF A DEFINITIVE AGREEMENT IS SUBJECT TO COMPLETION OF SATISFACTORY DUE DILIGENCE EFFORTS AND APPROVAL BY THE BOARDS OF BOTH COMPANIES IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY LEGENT SHARES ROSE 47 OR 4875 TO 19625 LEGENT CORP OF VIENNA VA ROSE 875 CENTS TO 19625 A SHARE IN NATIONAL OVERTHECOUNTER TRADING THURSDAY AN ARTICLE FRIDAY INCORRECTLY STATED THAT THE COMPANY IS BASED IN SAN FRANCISCO AND THAT ITS STOCK ROSE 4875 A SHARE 9308270016 930827 DAY OF RECKONING AFTER YEARS OF BLISS CANADA FACES TROUBLE FROM EXCESS SPENDING ITS GOVERNMENTS BORROWED GAVE AWAY TOO MUCH NOW IT HAS TO CUT BACK A MAJOR TARGET MEDICAL CARE BY STAFF REPORTERS CHRISTOPHER J CHIPELLO IN MONTREAL MICHAEL T MALLOY IN TORONTO AND JOHN URQUHART IN OTTAWA CANADA MAY BE COLDER DULLER AND LESS POWERFUL THAN THE US BUT CANADIANS COMFORT THEMSELVES WITH A BELIEF THAT THEY HAVE A KINDER GENTLER SOCIETY CITY STREETS ARE SAFE AND CLEAN PEOPLE MIND THEIR MANNERS AND GOVERNMENT IS GENEROUS VERY GENEROUS WRITE A NOVEL GET A GOVERNMENT GRANT HAVE A BABY COLLECT A SUBSIDY JOB GOT YOU DOWN QUIT AND GET UNEMPLOYMENT BENEFITS UNTIL LATELY GOVERNMENT SPENDING JUST GOT OUT OF HAND SAYS MARLENE ZANSINGER 52YEAROLD OWNER OF MARLENE'S LUNCH DINER IN SHAUNAVON SASKATCHEWAN WE HAD IT TOO EASY NOW THE PROVINCE IS SLASHING SPENDING TO EASE ITS CRUSHING DEBT BURDEN AND MS ZANSINGER THINKS THE CUTBACKS HAVE JUST BEGUN UP THE ROAD IN VANGUARD SASKATCHEWAN MARK HEEBNER A WHEAT FARMER AND HIS FAMILY ARE FEELING THE EFFECTS MRS HEEBNER IS ABOUT TO LOSE HER PARTTIME JOB IN THE VILLAGE HOSPITAL ONE OF 52 TO HAVE THEIR FUNDING WITHDRAWN BY THE PROVINCE THE HEEBNERS RECENTLY PAID A BIG DENTAL BILL FOR ONE OF THEIR CHILDREN BECAUSE THE PROVINCE CURTAILED PEDIATRIC DENTAL BENEFITS IN JUNE MR HEEBNER'S ELDERLY PARENTS ARE PAYING MORE FOR PRESCRIPTION MEDICINE BECAUSE OF OTHER ROLLBACKS IF THE 37YEAROLD MR HEEBNER'S BACK ACTS UP AGAIN THE GOVERNMENT WILL MAKE HIM PAY MORE OF HIS CHIROPRACTIC BILLS TOO IN A COMMUNITY BATTERED BY SEVERAL YEARS OF LOW WHEAT PRICES IT FEELS AS IF IT'S BACK TO THE 1930S MR HEEBNER SAYS MR HEEBNER DOESN'T EXPECT ANY RELIEF FROM A NATIONAL ELECTION EXPECTED TO BE HELD THIS FALL CANADA SUFFERS FROM A RUNAWAY DEFICIT BALLOONING FOREIGN DEBT AND A TAX BURDEN FAR HEAVIER THAN THAT IN THE US NO MATTER WHICH PARTY WINS THE NEXT GOVERNMENT IN OTTAWA WON'T HAVE MUCH CHOICE BUT TO TRY TO RESTRAIN SPENDING WE ARE POORER SAYS DAVID DODGE THE COUNTRY'S DEPUTY FINANCE MINISTER FROM ONE END OF THE COUNTRY TO ANOTHER AND FROM INDUSTRY TO INDUSTRY THE RESOURCE INCOME WE USED TO GENERATE JUST ISN'T THERE ANYMORE WHOEVER COMES TO POWER WILL HAVE TO DEAL WITH THAT REALITY INDEED CANADA'S GROSS DOMESTIC PRODUCT PER CAPITA ADJUSTED FOR INFLATION DROPPED 54 FROM 1989 TO 1992 WITH THEIR TAX BASE THUS CRIMPED PROVINCIAL GOVERNMENTS OF EVERY STRIPE FROM CONSERVATIVES TO LIBERALS TO THE SOCIALIST NEW DEMOCRATS ALSO ARE PARING SERVICES AND HANDOUTS IN ONTARIO A NEW DEMOCRATIC GOVERNMENT HAS OUTRAGED ITS LABORUNION SUPPORTERS BY EXTRACTING PAY CONCESSIONS FROM ITS PUBLIC EMPLOYEES AND PASSING LEGISLATION TO OVERRIDE THEIR CONTRACTS IT HAS PROPOSED TO LIMIT THE PAID VISITS THAT THE MENTALLY ILL CAN MAKE TO PSYCHIATRISTS IT HAS WARNED CITIZENS TO BUY THEIR OWN MEDICAL INSURANCE WHEN TRAVELING OUTSIDE THE COUNTRY IT HAS SHARPLY REDUCED THE AMOUNT THAT IT REIMBURSES A PATIENT FOR MEDICAL EXPENSES INCURRED ABROAD IN NEWFOUNDLAND AN ELECTION IN MAY BECAME A CONTEST BETWEEN PUBLICSECTOR WORKERS INCLUDING TEACHERS AND NURSES AND A LIBERAL PARTY GOVERNMENT THAT WANTED TO CUT ITS CONTRIBUTIONS TO THEIR PENSION PLANS DEFICITWEARY NEWFOUNDLANDERS VOTED FOR THE LIBERALS IN SASKATCHEWAN WHICH INVENTED CANADA'S VERSION OF SOCIALIZED MEDICINE A NEW DEMOCRATIC GOVERNMENT IS ELIMINATING 27 OF THE HOSPITAL BEDS AS A RESULT PARENTS OF 35 OF 135 STUDENTS AT THE HEEBNERS' LOCAL SCHOOL HAVE RECEIVED LAYOFF NOTICES THE PROVINCE ALSO IS CUTTING FUNDING TO SCHOOLS BY 8 OVER THREE YEARS SUCH CUTBACKS MAY SOUND FAMILIAR TO AMERICANS BUT CANADIANS HAVE NEARLY EXHAUSTED SOLUTIONS THAT AMERICANS HAVE ONLY BEGUN TO CONSIDER AFTER MUCH TREPIDATION THE US CONGRESS RAISED THE FEDERAL GASOLINE TAX BY 43 CENTS A GALLON CANADIAN GASOLINE TAXES EQUIVALENT TO ABOUT 75 US CENTS A GALLON ARE 2 1/2 TIMES THE US AVERAGE US ANTISMOKING GROUPS WANT A 2APACK TAX ON CIGARETTES CANADIANS ALREADY ARE TAXED THE EQUIVALENT OF US3 A PACK A TYPICAL MARRIED TAXPAYER FILING A JOINT RETURN AND EARNING 100000 IN NEW YORK CITY WOULD PAY 26242 IN INCOME TAXES UNDER THE NEW US TAX LAW WHILE A SIMILAR TAXPAYER IN TORONTO WOULD PAY THE EQUIVALENT OF 41329 COOPERS & LYBRAND CALCULATES AT 300000 IN EARNINGS THE NEW YORKER WOULD PAY 106612 WHILE HIS TORONTO COUNTERPART WOULD PAY 146019 WE WERE TRYING TO HAVE AMERICAN LEVELS OF TAXATION AND EUROPEAN LEVELS OF SERVICE LAMENTS DAVID PERRY SENIOR RESEARCHER FOR THE NONPARTISAN CANADIAN TAX FOUNDATION NOW HE SEES THE COUNTRY HEADING TOWARD AMERICAN LEVELS OF SERVICE AND EUROPEAN LEVELS OF TAXATION FOR DECADES CANADIAN SCHOOLTEACHERS HAVE REPEATED A FORMER PRIME MINISTER'S DECLARATION THAT THE 20TH CENTURY BELONGS TO CANADA MANY CANADIANS FULLY BELIEVED THAT A LAND WITH SO FEW PEOPLE SHARING SO MANY NATURAL RESOURCES JUST COULDN'T GO WRONG THE FUTURE LOOKED SO BRIGHT THAT IN THE 1970S THE GOVERNMENT BEGAN TO BORROW HEAVILY AGAINST IT CANADIANS STOPPED EARNING THEIR STANDARD OF LIVING IN THE 1970S AND BEGAN TO BORROW IT WE BORROWED FROM EVERY NOOK AND CRANNY OF THE WORLD SAYS MICHAEL WILSON A FORMER FINANCE MINISTER YEARS EARLIER CANADA HAD BORROWED HEAVILY TO INVEST IN RAILROADS PIPELINES AND OTHER BASIC PROJECTS BUT IN THE PAST 20 YEARS OR SO THE BORROWINGS HAVE BEEN FINANCING OTHER KINDS OF SPENDING THE PROVINCES PROVIDED FREE MEDICAL CARE THE FEDERAL GOVERNMENT SENT A MONTHLY CHECK TO EVERY MOTHER EVEN IF THE FAMILY WAS RICH PUBLIC SUBSIDIES KEPT COLLEGE TUITION LOW AT MONTREAL'S PRESTIGIOUS MCGILL UNIVERSITY IT IS STILL UNDER 1500 A YEAR UNEMPLOYMENT INSURANCE IS SO GENEROUS THAT IN SOME PARTS OF THE COUNTRY IT HAS BECOME A WAY OF LIFE THREE MONTHS OF WORK AND NINE MONTHS ON THE DOLE IN THE LITTLE PROVINCE OF PRINCE EDWARD ISLAND THE NEW DEMOCRATIC PARTY LAYS OFF ITS LEADER FOR THREE MONTHS EACH YEAR SO HE CAN COLLECT FEDERAL UNEMPLOYMENT BENEFITS AND SAVE THE PARTY ABOUT 3100 BY THE TIME THE CONSERVATIVE GOVERNMENT HEADED BY BRIAN MULRONEY TOOK OFFICE IN 1984 317 CENTS OF EVERY DOLLAR COLLECTED BY THE FEDERAL GOVERNMENT WENT TO SERVICE ITS DEBT THE CONSERVATIVES MADE MODEST EFFORTS TO TACKLE THE DEFICIT REINING IN SOME HANDOUTS CURBING FEDERAL PAYMENTS TO THE PROVINCES AND IMPOSING AN UNPOPULAR NATIONAL SALES TAX BUT THE DEBTSERVICE COSTS HAVE NEVERTHELESS EDGED HIGHER TO 321 CENTS OF EVERY DOLLAR OF FEDERAL REVENUEFAR ABOVE THE US GOVERNMENT'S COST OF 238 CENTS PER DOLLAR OF FEDERAL REVENUE WHILE THE GROWTH IN OTTAWA'S DEFICIT SLOWED THE PROVINCES WENT ON A BORROWING BINGE OF THEIR OWN TO FUND THEIR DEFICITS BY LAST YEAR CANADA'S TOTAL PUBLIC AND PRIVATE FOREIGN DEBT RELATIVE TO GROSS DOMESTIC PRODUCT WAS MORE THAN SIX TIMES THAT OF THE US FEW PEOPLE TALK OF CANADA'S CENTURY ANYMORE SEVERAL TIMES IN THE PAST YEAR NERVOUS FOREIGN HOLDERS OF CANADA'S DEBT HAVE CAUSED ITS INTEREST RATES TO SURGE AND ITS CURRENCY TO SWOON CANADIANS ONCE TOOK PRIDE IN A CURRENCY THAT WAS SOMETIMES STRONGER THAN THE US DOLLAR NOW IT FLOATS NERVOUSLY AROUND 76 US CENTS IT IS IMPOSSIBLE TO TELL PRECISELY AT WHICH POINT NATIONAL DEBTSERVICING BURDENS ARE SO HIGH THAT INVESTORS' CONFIDENCE EVAPORATES ECONOMISTS AT ROYAL BANK OF CANADA WROTE IN A REPORT LAST SPRING BUT THERE IS SUCH A POINT THEY WARNED AND IF THAT POINT IS REACHED IT WILL COME WITHOUT TOO MUCH WARNING SO PROVINCIAL GOVERNMENTS WORRIED THAT FOREIGN LENDERS AND THEIR OWN TAXPAYERS MAY LOSE PATIENCE ARE SNIPPING AT THE EDGES OF THE COUNTRY'S GENEROUS SOCIAL SAFETY NET AND CHOPPING SUBSIDIES TO TOWNS AND RURAL AREAS TORONTO ISN'T QUITE AS SQUEAKYCLEAN SINCE THE FREQUENCY OF GARBAGE COLLECTIONS WAS HALVED OTTAWA'S ONCETRIM GREEN SPACES NOW RESEMBLE HAYFIELDS ITS LAWN SERVICE HAS BEEN CUT BACK A GALLUP POLL IN MAY FOUND THAT 55 OF CANADIANS EXPECT THE COUNTRY'S STANDARD OF LIVING TO DECLINE IN THE NEXT 20 YEARS ONLY 23 EXPECT IT TO RISE ALL THIS SUGGESTS THAT CANADIANS WILL GO TO THE POLLS THIS FALL IN A SULLEN AND UNPREDICTABLE MOOD ALL YOU KNOW IS THAT PEOPLE WILL COME OUT OF THE VOTING BOOTH SAYING 'I FLIPPED A COIN' SAYS MICHAEL ADAMS PRESIDENT OF ENVIRONICS RESEARCH GROUP A POLLING FIRM MR ADAMS JOKES THAT HE MIGHT START A SERVICE TO ADVISE VOTERS HOW TO KEEP OUT THE PERSON THEY DISLIKE THE MOST THE RULING CONSERVATIVES ARE LED BY PRIME MINISTER KIM CAMPBELL WHO WAS BACKED BY PARTY INSIDERS LOOKING FOR A NEW FACE TO SUCCEED MR MULRONEY WHEN UNDER A CLOUD OF UNPOPULARITY HE QUIT EARLIER THIS YEAR AS A WOMAN WHO DIDN'T COME FROM THE DOMINANT PROVINCES OF ONTARIO OR QUEBEC SHE FIT THE SPECIFICATIONS SHE HAS PLEDGED TO ELIMINATE THE FEDERAL DEFICIT IN FIVE YEARS BUT HAS SKIMPED ON DETAILS AND TALKS VAGUELY ABOUT THE POLITICS OF INCLUSIVENESS THE LIBERAL PARTY LEADS IN OPINION POLLS WITH SLIGHTLY OVER 40 SUPPORT BUT IT IS BURDENED WITH AN OLD FACE AS LEADER JEAN CHRETIEN WAS A CABINET MEMBER IN THE BIGBORROWING GOVERNMENTS OF THE 1970S AND IS UNPOPULAR EVEN IN QUEBEC HIS HOME PROVINCE THE PARTY OPPOSES SHARP CUTS IN PUBLIC SPENDING BUT WOULD FACE THE SAME PROBLEMS THAT HAVE LED LIBERAL GOVERNMENTS IN NEWFOUNDLAND AND QUEBEC TO EMBRACE AUSTERITY SUPPORT FOR THE TRADITIONAL THIRD PARTY THE NEW DEMOCRATS SANK TO 8 IN THE LATEST GALLUP POLL THE NATIONAL PARTY HAS BEEN TORN BY FEUDS BETWEEN DOGMATIC SOCIALISTS AND BACKERS OF A DEFICITFIGHTING WING IN ONTARIO AND SASKATCHEWAN THEN THERE ARE THE NEWCOMERS THE REFORM PARTY AND BLOC QUEBECOIS REFORM IDEOLOGICALLY RIGHT OF THE CONSERVATIVES APPEALS TO MANY DISGRUNTLED WESTERN CANADIANS THE BLOC WHICH WANTS QUEBEC TO SECEDE FROM CANADA LEADS IN THE FRENCHSPEAKING PROVINCE ACCORDING TO QUEBEC POLLSTERS BETWEEN THEM THE TWO PARTIES COULD DRAW 15 OF THE NATIONAL VOTE SURVEYS INDICATE PUNDITS SPECULATE THAT THE ELECTION COULD YIELD A FIVEPARTY NOMAJORITY PIZZA PARLIAMENT PARALLELING THE ITALIANSTYLE MESS YET CANADA STILL HAS PLENTY GOING FOR IT ITS LONGCODDLED INDUSTRIES RESTRUCTURED IN THE EARLY 1990S PARTLY BECAUSE OF THE FREE TRADE AGREEMENT WITH THE US THAT TOOK EFFECT IN 1989 ALTHOUGH THE RESTRUCTURING IS PARTLY RESPONSIBLE FOR CANADA'S CURRENT 116 UNEMPLOYMENT RATE IT ALSO HAS HELPED CANADIAN MANUFACTURING BECOME MORE COMPETITIVE THE INTERNATIONAL MONETARY FUND PREDICTS THAT CANADA'S GROSS DOMESTIC PRODUCT WILL GROW 32 THIS YEAR AND 44 NEXT YEAR OUTPERFORMING ANY OTHER GROUPOFSEVEN INDUSTRIAL NATION FOR THE TWOYEAR PERIOD EXPORTS TO THE US SURGED 21 FOR THE FIRST SIX MONTHS OF THIS YEAR INTEREST RATES AFTER SPIKING UP LATE LAST YEAR HAVE SETTLED DOWN TO 20YEAR LOWS AND IF PROVINCIAL AND FEDERAL GOVERNMENTS MAKE GOOD ON BUDGET PROJECTIONS FOR THE FISCAL YEAR ENDING NEXT MARCH 31 THEIR COMBINED DEFICIT WILL DROP TO ABOUT C52 BILLION FROM C60 BILLION A YEAR EARLIER EVEN AFTER SOCIALWELFARE FRILLS ARE CUT CANADIANS WILL ENJOY A SENSE OF SECURITY THAT MANY AMERICANS WOULD ENVY WHILE CANADIAN OFFICIALS SEEK WAYS TO CURB HEALTH COSTS THE POLITICIANS AND THE PUBLIC ALIKE ARE WIDELY COMMITTED TO PRESERVING THE CORE OF THEIR HEALTHCARE SYSTEM SOME ANALYSTS BELIEVE GOVERNMENT SPENDING CAN BE SLASHED WITHOUT HURTING THE TRULY NEEDY MICHAEL WALKER EXECUTIVE DIRECTOR OF THE FRASER INSTITUTE A CONSERVATIVE THINK TANK IN VANCOUVER CONTENDS THAT AT LEAST HALF THE FEDERAL DEFICIT COULD BE ELIMINATED IF THE GOVERNMENT CUT OFF CERTAIN BENEFITS TO HOUSEHOLDS WITH ABOVEAVERAGE INCOMES AS IT HAS DONE RECENTLY WITH THE CHILDBENEFIT PAYMENT MEANWHILE OTHER CHANGES LOOM MORE THAN 8400 AUTHORS WILL SEE AN 18 CUT NEXT YEAR IN THE GOVERNMENT PAYMENTS THEY RECEIVE FOR HAVING THEIR BOOKS ON THE SHELVES OF CANADIAN LIBRARIES IT'S THE ONE CHECK I CAN RELY ON SAYS SUSAN MUSGRAVE A BRITISH COLUMBIA POET WHO GOT THE MAXIMUM C4300 THIS YEAR AND USES THE MONEY TO SUPPORT HER TWO YOUNG CHILDREN HUNDREDS OF THOUSANDS OF SNOWBIRDS WHO FLOCK SOUTH IN WINTER WILL BE WINGED OLIVE BUSTARD A 74YEAROLD RETIRED SHOPKEEPER AND HER 82YEAROLD HUSBAND EXPECT TO PAY MORE THAN 1600 FOR SUPPLEMENTAL HEALTH INSURANCE WHILE IN FLORIDA THIS WINTER ABOUT THREE TIMES WHAT THEY PAID BEFORE ONTARIO TIGHTENED RULES FOR OUTOFCOUNTRY REIMBURSEMENTS AND JOHN DANIELS WHO HAS A HEART CONDITION HAS STOPPED GOING TO ARIZONA IT WOULD RUIN US COMPLETELY IF SOMETHING HAPPENED IN THE US SAYS THE 78YEAROLD FORMER FOOD EXECUTIVE BUT I CAN'T REALLY BLAME CASHSHORT ONTARIO FOR THE CHANGE IN POLICY HE SAYS 9308270015 930827 BUSINESS BRIEF FLAMEMASTER CORP MAKER OF INDUSTRIAL SEALANTS ALLEGES BREACH OF CONTRACT FLAMEMASTER CORP OF SUN VALLEY CALIF SAID IT FILED SUIT AGAINST COURTAULDS AEROSPACE INC OF GLENDALE CALIF AND ITS LONDONBASED PARENT COURTAULDS PLC ALLEGING BREACH OF CONTRACT FRAUD UNFAIR TRADE PRACTICES AND ANTITRUST VIOLATIONS THE COMPLAINT FILED IN FEDERAL COURT IN LOS ANGELES STEMS FROM AGREEMENTS FLAMEMASTER HAD MADE WITH PRODUCTS RESEARCH & CHEMICAL CORP ACQUIRED IN 1989 BY COURTAULDS TO JOINTLY DEVELOP AND LICENSE SEALANTS FLAMEMASTER A MAKER OF FLAMERETARDANT COATINGS AND INDUSTRIAL SEALANTS SAID IT IS SEEKING MORE THAN 75 MILLION IN DAMAGES THE SUIT ALSO SEEKS TO CANCEL 349321 FLAMEMASTER SHARES HELD BY COURTAULDS THE 349321 SHARES WERE ISSUED AS PART OF FLAMEMASTER'S 1989 AGREEMENTS WITH PRODUCTS RESEARCH & CHEMICAL THE SUIT ALLEGES THAT COURTAULDS FAILED TO DEVELOP PRODUCTS OR TO PROVIDE TECHNOLOGY TO FLAMEMASTER OR TO MARKET FLAMEMASTER'S PRODUCTS AS AGREED 9308270014 930827 DEAR GOVERNMENT NO TRESPASSING BY GARY EISLER THE REDTAILED HAWK AND THE CROW ARE GOING AT IT AGAIN FLAPPING AT EACH OTHER WAY OVER MY HEAD IN THE CLOUDY OREGON SKY WHO KNOWS WHAT THEY'RE FIGHTING ABOUT THIS TIME A MOUSE SIMPLE DOMINANCE ENOUGH ALREADY I SHOUT BUT WHY SHOULD THEY LISTEN TO ME TO THEM I'M AN INTRUDER ON 72 ACRES OF FOREST LAND NEAR PORTLAND THAT THEY THINK IS THEIRS THE FACT THAT I PAID FOR THE PLACE MAKES NO DIFFERENCE TO THEM NOR DOES IT MAKE ANY DIFFERENCE TO THE MANY CONTENDING ENTITIES THAT ALSO FEEL THEY HAVE A CLAIM ON MY PROPERTY GROUPS SUCH AS THE LAND CONSERVATION AND DEVELOPMENT COMMISSION LCDC THE TIMBER INDUSTRY AND 1000 FRIENDS OF OREGON THEY ARE TRYING TO SUCK THE VALUE OUT OF MY INVESTMENT AND LEAVE ME WITH NOTHING BUT THE TITLE AND THE PROPERTYTAX BILL ON A LARGER LEVEL THEY ARE TRYING TO FORCE PEOPLE OFF THE LAND AND INTO THE CITIES THE TIMBER INDUSTRY IN QUIET COLLUSION WITH ENVIRONMENTALISTS IS USING THE MECHANISM OF GOVERNMENT TO EXPROPRIATE SMALL LANDHOLDINGS OREGON WAS THE FIRST STATE TO BEGIN STATEWIDE LANDUSE PLANNING IN 1973 TO PRESERVE FARM AND FOREST LANDS LINES WERE DRAWN AROUND MAJOR CITIES WITH ALL URBAN DEVELOPMENT TO TAKE PLACE WITHIN THOSE URBAN GROWTH BOUNDARIES OUTSIDE THOSE LINES RESIDENTIAL AND OTHER DEVELOPMENT WAS TO BE CURTAILED THE LCDC HAS THE RIGHT TO OVERRULE LOCAL LANDUSE DECISIONS AND COUNTY PLANNERS ARE LOATH EVEN TO CONSIDER GRANTING BUILDING PERMITS FOR FEAR THE ACTIVIST 1000 FRIENDS OF OREGON WITH THEIR STAFF OF LAWYERS WILL SUE THE NET RESULT IS THAT THE POPULATION DENSITY OF THE CITIES IS INCREASING WITH HALF THE BUILDABLE LAND NOW REQUIRED TO BE MULTIFAMILY PEOPLE CAME HERE FOR THE RELAXED OPEN LIFESTYLE BORN OF A CITY OF SINGLEFAMILY DWELLINGS WITH PLENTY OF SPACE IN BETWEEN BUT NOW SOME BUREAUCRAT IN THE COMMISSION HAS DECIDED WITHOUT CONSULTING US THAT OUR LIFESTYLE WILL CHANGE FOR THE WORSE AND WE DON'T HAVE THE OPPORTUNITY TO THROW THE BUMS OUT WHEN THE LCDC WAS FORMED THE LEGISLATURE FEARING PRESSURE FROM UNHAPPY CITIZENS PLACED ITS APPOINTED BOARD WELL BEYOND THE REACH OF VOTERS NOR DID ANYONE POLL THOSE OF US WITH LAND JUST OUTSIDE THE URBAN GROWTH BOUNDARY WHO HAD BOUGHT PROPERTY WITH DREAMS OF BUILDING A PLACE IN THE COUNTRY OUR HOPES HAVE BEEN TURNED INTO UNCERTAINTY FRUSTRATION AND FEAR TO FIND A BUILDABLE SMALL PIECE OF LAND OUTSIDE THE URBAN GROWTH BOUNDARY BECOMES INCREASINGLY DIFFICULT ACCORDING TO STU MCMULLEN PRESIDENT OF PACIFIC NORTHWEST HOUSING IN VANCOUVER WASH ACROSS THE COLUMBIA RIVER HE IS BUILDING HOUSES ON SMALL ACREAGES THERE ALL THE TIME FOR FRUSTRATED OREGONIANS WITH A SIGH I RETURN TO MY LABOR FROM THE TIME OF THE SNOWS I HAVE BEEN TAKING OFF EARLY FROM MY WORK AS A WRITER TO DRIVE AN HOUR ONE WAY FROM MY HOME TO COME HERE AND CUT SCOTCH BROOM I HAVE TO ELIMINATE IT TO PROTECT THE SEEDLING DOUGLAS FIR PLANTED AT THE BEHEST OF THE STATE OF OREGON SO THAT I CAN QUALIFY FOR A REDUCTION IN PROPERTY TAXES WHICH I NEED TO PREVENT BEING TAXED OFF THE LAND IF I COULD FIGURE OUT A WAY TO MAKE A BUCK OUT OF SCOTCH BROOM I'D BE RICH IN WARM WEATHER YOU CAN HEAR THE PODS POPPING SCATTERING SEEDS EVERYWHERE THE BRUSH GROWS SO THICK DOZENS OF STEMS PER SQUARE FOOT THAT IT CROWDS OUT SEEDLING TIMBER TREES AND IT GROWS TALL WAY OVER MY HEAD THEN THORNY BLACKBERRY VINES LACE THEMSELVES THROUGH THE BRANCHES AND MIX WITH FERNS AND TALL GRASSES TO FORM A WALL OF VEGETATION EVEN THOUGH I USE A GASPOWERED HOMELITE BRUSH CUTTER WITH A SPINNING SAW BLADE PERFECT FOR A SLASHER MOVIE IT STILL TAKES HOURS TO CUT THROUGH THE GLOOMY MASS AND RELEASE EVEN A HANDFUL OF TREES AND I AM LOOKING AT MANY MORE DAYS BEFORE I HAVE CLEARED IT ALL AWAY IT'S JUST LIKE THE TANGLE I'M HACKING MY WAY THROUGH TO KEEP ANY VALUE IN MY PROPERTY I HAD TO HAVE A FOREST MANAGEMENT PLAN PREPARED BY A PROFESSIONAL FORESTER LUCKY FOR ME I MET MANY OF THE REQUIREMENTS YEARS AGO BUT THERE ARE THOSE PERSISTENT RUMORS THAT THE RULES WILL BE CHANGING THIS FALL ONE COUNTY OFFICIAL REPORTEDLY BOASTED THAT THEY HADN'T ISSUED A BUILDING PERMIT FOR FOREST LAND IN TWO YEARS SOMEONE ONCE OFFERED TO MOVE A SHED ONTO MY PROPERTY THERE WERE SO MANY HOOPS TO JUMP THROUGH I HAD TO LET IT GO IT HASN'T BEEN EASY FINDING OTHER SOURCES OF INCOME ON THE PROPERTY I HAVE A SPRING PRODUCING 60 GALLONS PER MINUTE OF PURE DRINKING WATER WHICH I WANTED TO BOTTLE AND SELL BEFORE I COULD START MY BUSINESS I HAD TO APPEAR BEFORE THE STATE WATER RESOURCES COMMISSION TO OBTAIN THE WATER RIGHTS IF I DON'T GET A BUILDING PERMIT I WILL PROBABLY LOSE THE GREAT BULK OF EQUITY IN MY PROPERTY AND HENCE MY RETIREMENT THE VALUE WOULD BE CUT TO ABOUT 200 AN ACRE FROM 2000 TO 3000 THAT'S THE DIFFERENCE BETWEEN A LOT SOMEONE COULD BUILD A HOME ON AND LAND SUITABLE ONLY FOR GROWING TREES FALL IS WHEN THE LCDC WILL IMPLEMENT ITS NEW DECREES WHOSE NET RESULT WILL BE TO FURTHER LIMIT HOMEBUILDING ON FOREST LANDS BOB SCHUSTER A LOCAL REAL ESTATE AGENT SAYS WE HAVE NO BUYERS FOR PARKS BUT HE IS REALLY TALKING ABOUT PEOPLE LIKE ME AS MR SCHUSTER CONCEDES THERE ARE BUYERS FOR NONBUILDABLE FOREST LAND AT 200 AN ACRE TIMBER COMPANIES CAN HOLD ONTO PROPERTY FOR 60 YEARS AND THEN SELL IT AT THE PRICES BUILDING LOTS WOULD BRING HE SAID ACTUALLY THEY WOULDN'T EVEN NEED TO BUY THE LAND THEY COULD JUST BUY THE TIMBER IF THAT'S ALL THE LAND IS GOOD FOR NOW THE CLINTON ADMINISTRATION IS CONSIDERING CHOPPING THE AMOUNT OF TIMBER AVAILABLE FROM NATIONAL FOREST LANDS WEST OF THE CASCADES TO 12 BILLION BOARD FEET PER YEAR FROM FIVE BILLION WITH FEDERAL FOREST LANDS NOW BEYOND ITS REACH THE TIMBER INDUSTRY LOOKS TO PRIVATE HOLDINGS TO MAKE UP THE DIFFERENCE THE 25000 SMALL WOODLAND OWNERS LIKE ME OWN 40 OF OREGON'S PRIVATELY HELD TIMBERLANDS CONFISCATION WITHOUT REIMBURSEMENT IS SUPPOSED TO BE ILLEGAL MR SCHUSTER SAID INDEED 20 YEARS AGO WHEN SB 100 WHICH FORMED THE LCDC WAS WRITTEN THERE WERE PROVISIONS TO COMPENSATE OWNERS WHO HAD LOST SOME OF THE VALUE OF THEIR PROPERTY FOR THE PUBLIC BENEFIT LARRY GEORGE EXECUTIVE DIRECTOR OF OREGONIANS IN ACTION A GROUP AIMED AT PROTECTING PROPERTY RIGHTS SAID THE LEGISLATURE NEVER INTENDED TO GIVE THE LCDC POWER TO TAKE AWAY PROPERTY RIGHTS WITHOUT COMPENSATING THE OWNERS BUT BECAUSE THE OWNERS CAN STILL MAKE SOME ECONOMIC USE OF THE PROPERTY SUCH AS GROWING TIMBER RATHER THAN BUILDING A HOUSE THERE HAS NOT BEEN COMPENSATION TRUE GOV BARBARA ROBERTS BEGRUDGINGLY SAID SHE WOULD SIGN A BILL INTRODUCED BY REP RAY BAUM OF RURAL LA GRANDE THAT SLIGHTLY OPENS THE DOOR TO SOME RESIDENTIAL DEVELOPMENT IN AGRICULTURAL AND FOREST LANDS REP BAUM HAD THREATENED TO HOLD THE LCDC'S BUDGET HOSTAGE UNLESS THE RULES WERE RELAXED ALTHOUGH THE PROPOSED CHANGES PLEASE NO ONE COMPLETELY I WAS JUST HAPPY THAT THE LEGISLATIVE PROCESS COULD STILL RESPOND TO THE PEOPLE NOW WE'RE WAITING TO SEE WHAT HAPPENS MEANWHILE AS I LOOK AT THESE TINY SEEDLINGS AND CONTEMPLATE THE CENTURY OR SO BEFORE THEY CAN BE HARVESTED I HOPE MY GREATGRANDCHILDREN WILL THANK ME FOR THEIR RETIREMENT INCOME MR EISLER IS A PORTLANDAREA FREELANCE WRITER TREE FARMER AND WATER PURVEYOR 9308270013 930827 MARKETING BRIEF GENERAL ELECTRIC CO NBC UNIT TAKES MAJOR ROLE IN PROVIDER OF MEDICAL DATA NATIONAL BROADCASTING CO SAID IT BECAME MANAGING PARTNER IN AMERICAN MEDICAL TELEVISION A PROVIDER OF MEDICAL PROGRAMMING THAT IT IS CONSIDERING TURNING INTO A 24HOUR CABLE CHANNEL AN NBC SPOKESMAN SAID THAT IN VIEW OF THE AMERICAN MEDICAL AND PYRAMED VENTURES THE COMPANY IS EXPLORING THE LAUNCH OF A 24HOUR HEALTH AND MEDICAL CABLE NETWORK BY MID1994 NBC DECLINED TO DISCLOSE THE SIZE OF VARIOUS SHAREHOLDERS' STAKES BUT SAID IT NOW OWNS MORE THAN 40 OF AMERICAN MEDICAL TELEVISION DILUTING THE INTEREST HELD BY THE AMERICAN MEDICAL ASSOCIATION AND OTHERS AMERICAN MEDICAL TELEVISION BROADCAST WEEKLY ON NBC'S CNBC UNIT OFFERS INFORMATION OF INTEREST TO HEALTHCARE PROVIDERS AND CONSUMERS 9308270012 930827 BUSINESS BRIEF ICN PHARMACEUTICALS INC ANOTHER INJUNCTION SOUGHT TO BAR BID TO TAKE CONTROL ICN PHARMACEUTICALS INC SAID IT WOULD IMMEDIATELY SEEK ANOTHER INJUNCTION BARRING STOCKBROKER RAFI M KHAN FROM TRYING TO TAKE CONTROL OF THE COMPANY AFTER AN APPELLATE COURT RULING THIS WEEK STRUCK DOWN AN INJUNCTION AGAINST MR KHAN THE FEDERAL APPEALS COURT IN NEW YORK SET ASIDE A LOWER COURT'S PRELIMINARY INJUNCTION THAT BLOCKED MR KHAN FROM SOLICITING CONSENTS OR FROM WAGING A PROXY FIGHT AGAINST ICN THE APPEALS COURT ALSO SENT THE CASE BACK TO THE LOWER COURT FOR FURTHER PROCEEDINGS MR KHAN HAILED THE APPELLATE RULING AS A VICTORY ICN CLAIMED VICTORY TOO WE WILL BE RAISING ADDITIONAL POINTS AND ADDITIONAL CLAIMS OF VERY SERIOUS SECURITIES VIOLATIONS BY MR KHAN AND IN THE CIRCUMSTANCES IT SEEMS TO US THAT WE WILL UNDOUBTEDLY BE SEEKING ANOTHER INJUNCTION SAID ARNOLD I BURNS AN ATTORNEY REPRESENTING ICN 9308270011 930827 BUSINESS BRIEF HONGKONG & SHANGHAI HOTELS LTD FIRSTHALF PROFIT GREW 12 DESPITE 86 SLIP IN REVENUE HONGKONG & SHANGHAI HOTELS LTD REPORTED THAT ITS NET INCOME IN THE FIRST SIX MONTHS OF 1993 ROSE 12 DESPITE AN 86 DROP IN REVENUE NET ROSE TO 178 MILLION HONG KONG DOLLARS US229 MILLION OR 17 CENTS A SHARE IN THE FIRST HALF FROM HK159 MILLION OR 15 CENTS A SHARE A YEAR AGO REVENUE FELL TO 828 MILLION THE COMPANY CONTROLLED BY THE KADOORIE FAMILY ALSO PUBLICLY EXPRESSED ITS SADNESS AT THE DEATH EARLIER THIS WEEK OF LORD KADOORIE THE FAMILY PATRIARCH THE 94YEAROLD LORD KADOORIE WAS ONE OF THE LAST OF THE ORIGINAL FOREIGN TAIPANS WHO BUILT BUSINESS EMPIRES IN HONG KONG 9308270010 930827 BUSINESS BRIEF GLOBAL MARINE INC DRILLING CONCERN TRANSOCEAN SIGN PACT OVER RIG INTERESTS GLOBAL MARINE INC SAID IT SIGNED A DEFINITIVE AGREEMENT WITH TRANSOCEAN DRILLING AS OF NORWAY THAT ALTERS THEIR ANNOUNCED EXCHANGE OF INTERESTS IN DRILLING RIGS HOUSTONBASED GLOBAL MARINE WILL ACQUIRE THREE TRANSOCEAN 300FOOT JACKUP DRILLING RIGS IN EXCHANGE FOR THE HEAVYWEATHER JACKUP DRILLING RIG GLOMAR MORAY FIRTH PLUS 17 MILLION GLOBAL MARINE WILL RECEIVE 57 OF THE AGGREGATE CASH FLOW GENERATED BY THE FOUR RIGS AND TRANSOCEAN WILL GET 43 UNDER A LETTER OF INTENT THE COMPANIES SIGNED IN JUNE GLOBAL MARINE WAS TO ACQUIRE A HALFINTEREST IN THE THREE TRANSOCEAN RIGS IN EXCHANGE FOR A 50 SHARE OF THE GLOMAR MORAY FIRTH AND 85 MILLION GLOBAL MARINE IS AN INTERNATIONAL OFFSHORE DRILLING CONTRACTOR WITH INTERESTS IN OIL AND GAS PRODUCTION TRANSOCEAN IS A DRILLING CONTRACTOR AND DRILLINGFLUIDS COMPANY 9308270009 930827 BUSINESS BRIEF QUANEX CORP NICHOLSHOMESHIELD UNIT HAD A FIRE AT ILLINOIS FACILITY QUANEX CORP SAID ITS NICHOLSHOMESHIELD UNIT HAD A FIRE WEDNESDAY NIGHT AT ITS LINCOLNSHIRE ILL ALUMINUM COLD ROLLING FACILITY QUANEX SAID THERE WERE NO INJURIES THE COMPANY SAID THE FIRE SHUT DOWN ONE OF THE TWO MILLS AT THE LINCOLNSHIRE PLANT QUANEX BASED IN HOUSTON SAID IT WILL BE SEVERAL DAYS BEFORE THE EXTENT OF THE FIRE DAMAGE IS KNOWN A SPOKESMAN SAID IT HASN'T BEEN DETERMINED HOW LONG THAT MILL WILL REMAIN SHUT DOWN HE SAID UNTIL ITS IS BACK ON LINE ITS PRODUCTION LOAD MAY BE DIVERTED TO THE OTHER MILL AT THE LINCOLNSHIRE PLANT DIVERTED TO THE COMPANY'S DAVENPORT COLD ROLLING PLANT OR CONTRACTED OUT THE SPOKESMAN SAID THE FINANCIAL IMPLICATIONS OF THE FIRE AND SHUTDOWN HAVE YET TO BE ESTIMATED 9308270007 930827 BUSINESS BRIEF AMR CORP AIRPORT TERMINAL RENOVATION IN LOS ANGELES IS CANCELED AMERICAN AIRLINES SAID IT IS CANCELING A 77 MILLION RENOVATION AT LOS ANGELES INTERNATIONAL AIRPORT BECAUSE OF A DISPUTE WITH LOCAL AUTHORITIES OVER FINANCING THE AMR CORP UNIT HAD PLANNED TO RENOVATE AND EXPAND ITS TERMINAL AT THE AIRPORT ABOUT HALF OF WHICH INVOLVED PUBLIC USE AREAS AND HAD EXPECTED THE CITY TO SHARE IN THE COST IN A STATEMENT AMERICAN SAID THE CITY'S APPARENT DECISION TO REEVALUATE THAT LONGSTANDING PRACTICE GIVES IT NO CHOICE BUT TO PULL OUT BUT TED STEIN CHAIRMAN OF THE CITY'S BOARD OF AIRPORT COMMISSION SAID THERE WAS NO FORMAL BOARD APPROVAL TO SHARE IN THE IMPROVEMENTS AND THE AIRLINE HAD SPURNED REQUESTS TO SHOW THE BOARD ITS PLANS THE DISPUTE APPEARS TO HAVE ARISEN BECAUSE THE MORE INFORMAL AGREEMENT WAS SET IN MOTION UNDER THE CITY'S PREVIOUS ADMINISTRATION BUT THE CITY IN JUNE ELECTED A NEW MAYOR RICHARD RIORDAN MR STEIN WHO IS MR RIORDAN'S APPOINTMENT TO HEAD THE AIRPORT BOARD SAID HE WANTS TO SEE IF THE CITY CAN DO ITS SHARE OF THE WORK MORE CHEAPLY THAN AMERICAN HAS ESTIMATED 9308270006 930827 COMMODITIES GOLD FUTURES FALL NEARLY 5 ON TECHNICAL SELLING STOCKS BONDS SAID TO LEAVE BULLION VULNERABLE BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GOLD FUTURES PRICES FELL NEARLY 5 ON AGGRESSIVE MOSTLY TECHNICAL SELLING IN NEW YORK TRADERS SAID THAT BULLION APPEARS VULNERABLE TO FURTHER DECLINES AS INVESTOR SENTIMENT SEEMS CLEARLY FOCUSED ON ROARING STOCK AND BOND MARKETS ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR DECEMBER DELIVERY ENDED AT 37080 AN OUNCE OFF 470 BUT THE ACTIVELY TRADED DECEMBER CONTRACT HAD DIPPED AS LOW AS 367 BEFORE REGAINING SOME OF THE DAY'S LOSSES THE MARKET FINALLY BROKE OUT OF ITS NARROW 373378 TRADING BAND SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH & CO IN NEW YORK TRADERS AND ANALYSTS SAID SELLING PRESSURE CAME FROM COMMODITY FUNDS OR MANAGED POOLS OF INVESTORS' MONEY AND FROM PRODUCERS FOLLOWING THE 2260 SINGLEDAY DECLINE IN GOLD PRICES ON AUG 5 A NEARLY 6 DROP THE GOLD FUTURES MARKET HAS APPEARED SHAKY THEY SAID WHILE TODAY'S DECLINE IN GOLD CAN BE ATTRIBUTED TO A TECHNICAL BREAKDOWN MR O'NEILL SAID IT ULTIMATELY CAN BE ATTRIBUTED TO TWO FACTORS THE LOW GROWTH LOW INFLATION ECONOMIC SCENARIO AND A LACK OF PHYSICAL DEMAND FOR BULLION PARTICULARLY FROM ASIA TRADERS SAID THAT THE INITIAL CATALYST FOR THE SELLING WAS THE DECISION BY THE BUNDESBANK THE GERMAN CENTRAL BANK TO KEEP ITS KEY INTEREST RATES UNCHANGED CONFOUNDING EXPECTATIONS OF A RATE CUT GOLD A TRADITIONAL HEDGE AGAINST INFLATION HAS TENDED TO APPRECIATE SHARPLY IN THE IMMEDIATE WAKE OF RECENT BUNDESBANK RATE CUTS TRADERS SAID THAT A FURTHER LOWERING OF GERMAN INTEREST RATES YESTERDAY WOULD HAVE MADE GOLD A NONINTERESTBEARING INVESTMENT RELATIVELY MORE ATTRACTIVE LONGER TERM LOWER GERMAN INTEREST RATES ALSO MAY HAVE FUELED INFLATIONARY EXPECTATIONS IN EUROPE AND THUS BOOSTED GOLD AS AN INFLATION HEDGE TRADERS SAID THAT ONCE DECEMBER GOLD DIPPED BELOW THE 373 SUPPORT LEVEL IT QUICKLY BEGAN TO TRIGGER NEARBY STOPLOSS ORDERS OR PREARRANGED ORDERS TO LIQUIDATE POSITIONS INVESTORS ARE EXTREMELY SENSITIVE TO LIMIT THEIR RISK ON THE DOWNSIDE GIVEN THE DRAMATIC MOVES WE HAD THREE WEEKS AGO SAID DENISE GIORDANO SENIOR GOLD TRADER FOR SWISS BANK IN NEW YORK THEY'RE MUCH MORE WILLING TO BAIL OUT OF A LONG POSITION THAT APPEARS TO BE BREAKING OUT OF ANY TRADING RANGE THE SWISS BANK BULLION SPECIALIST SAID THAT THE 363364 LEVEL IS NOW CRITICAL FOR THE DECEMBER CONTRACT MS GIORDANO SAID THAT GOLD HAS BEEN WEAK FOR SOME TIME BECAUSE THERE HAS BEEN LITTLE NEW PHYSICAL DEMAND COMING INTO THE MARKET AND SHE NOTED MUCH OF THE INVESTMENT DEMAND FROM LARGE SPECULATORS THAT EARLIER HAD BUOYED THE MARKET HAS DISSIPATED UNFORTUNATELY THE PHYSICAL DEMAND SUBSIDED ABOVE 380 BUT MS GIORDANO ECHOING A NUMBER OF OTHER GOLD TRADERS AND ANALYSTS SAID THAT BULLION'S BIGGEST PROBLEM RIGHT NOW MIGHT BE THE GROWING INVESTOR LOVE AFFAIR WITH STOCKS AND BONDS THE STOCK AND BOND MARKETS ARE FLYING THAT'S WHERE THE ATTRACTION IS RIGHT NOW FOR THE BIG MONEY SHE SAID ADDING THAT GOLD IS FINDING SOME SUPPORT HOWEVER FROM LARGE INSTITUTIONAL INVESTORS SUCH AS PENSION FUNDS THAT ARE ADDING SMALL ALLOCATIONS OF BULLION OR GOLDMINING STOCKS TO THEIR PORTFOLIOS SOME ANALYSTS INSISTED THAT YESTERDAY'S DROP IN GOLD PRICES WAS A MINOR SETBACK IN AN OTHERWISE RECOVERING MARKET IT WAS A TECHNICAL ABERRATION SAID GEORGE MILLINGSTANLEY AN ANALYST WITH LEHMAN BROTHERS I'M LOOKING FOR THE MARKET TO RALLY BACK TO THE 370S YESTERDAY'S MOVE MERELY SHOOK OUT THE NEARBY STOP ORDERS HE SAID OTHER PRECIOUS METALS ENDED LOWER AS WELL DRAGGED DOWN LARGELY BY GOLD'S WEAKNESS TRADERS SAID SILVER FOR DECEMBER DELIVERY SHED 63 CENTS TO SETTLE AT 4717 AN OUNCE ON THE COMEX PLATINUM FOR OCTOBER DELIVERY SKIDDED 650 TO 38140 ON THE NEW YORK MERCANTILE EXCHANGE WHILE PALLADIUM FOR DECEMBER DELIVERY EXTENDED ITS RECENT SHARP RETREAT FALLING 650 TO 120 LUMBER FUTURES PRICES AGAIN ROSE TO THE 10 DAILY PRICEMOVEMENT LIMIT AT THE CHICAGO MERCANTILE EXCHANGE ANALYSTS SAID SHORTTERM SUPPLY SHORTAGES ON THE CASH MARKET CONTINUE TO PLAGUE LUMBER YARDS TRYING TO OBTAIN WOOD TO SELL TO BUILDERS AS WEATHER IMPROVES IN PREVIOUSLY RAINDRENCHED PARTS OF THE USINCLUDING THE MIDWESTHOMEBUILDING IS PICKING UP THIS HAS PRODUCED ROBUST DEMAND FOR LUMBER ON THE CASH MARKET IN TURN EXERTING UPWARD PRESSURE ON FUTURES PRICES AT THE CHICAGO MERC LUMBER FOR SEPTEMBER DELIVERY SETTLED AT 29130 PER THOUSAND BOARD FEET UP 10 ENERGY THE OIL MARKET TURNED LETHARGIC BUT NATURAL GAS PRICES CONTINUED TO BENEFIT FROM WEATHER EVENTS THE FUTURES PRICE OF NATURAL GAS FOR OCTOBER DELIVERY ROSE 47 CENTS TO 2428 A MILLION BRITISH THERMAL UNITS AFTER HURRICANE EMILY DEVELOPED OVERNIGHT FAR OUT IN THE ATLANTIC OCEAN NOVEMBER NATURAL GAS WAS UP 27 CENTS TO 2488 EVEN THOUGH THE NEW STORM POSED NO IMMEDIATE THREAT TO LAND TRADERS REMEMBER HURRICANE ANDREW AS THE CATALYST FOR A STEADY RISE IN GAS PRICES LAST YEAR AFTER IT DISRUPTED PRODUCTION OF THE FUEL IN THE GULF OF MEXICO GAS PRICES ALREADY HAD BEEN CLIMBING BECAUSE OF INCREASED USE BY UTILITIES IN GENERATING MORE ELECTRICITY TO MEET DEMAND CAUSED BY THE HEAT WAVE OVER THE SOUTHERN US FOR THE PAST TWO WEEKS 9308270005 930827 MARKETING & MEDIA JOHN LABATT BREWERY FILES TRADEMARK SUIT AGAINST RIVAL MOLSON TORONTO CANADA'S TWO DOMINANT BREWERS JOHN LABATT LTD AND MOLSON BREWERIES AGAIN ARE EMBROILED IN A LEGAL BATTLE IN THEIR STRUGGLE TO GAIN MARKET SHARE AT EACH OTHER'S EXPENSE LABATT CLAIMED IN A LAWSUIT THAT ITS TRADEMARK RIGHTS HAVE BEEN INFRINGED BY MOLSON'S ALLEGED USE OF THE TERM ICEBREWED IN MARKETING SEVERAL PRODUCTS INCLUDING SOME MOLSON EXPORTS TO THE US LABATT CLAIMS IT COINED AND SUBSEQUENTLY REGISTERED THE TERM TO IDENTIFY A BREWING PROCESS THAT THE COMPANY DEVELOPED OVER 10 YEARS AT A COST OF 26 MILLION CANADIAN DOLLARS US198 MILLION IN ITS LAWSUIT FILED IN THE FEDERAL COURT OF CANADA LABATT IS SEEKING ALL PROFITS MOLSON HAS MADE FROM PRODUCTS USING THE TERM ICEBREWED LABATT ALSO IS SEEKING C10 MILLION IN PUNITIVE DAMAGES MOLSON SAID THE LAWSUIT WAS GROUNDLESS THE COMPANY SAID THE TERM ICEBREWED' IS A GENERIC DESCRIPTION OF A BREWING PROCESS FIRST CREATED IN THE LAST CENTURY AND WELLKNOWN WITHIN THE BREWING INDUSTRY MOLSON IS A JOINT VENTURE OF MOLSON COS OF TORONTO FOSTER'S BREWING GROUP LTD OF AUSTRALIA AND MILLER BREWING OF MILWAUKEE A UNIT OF PHILIP MORRIS COS LABATT LAUNCHED ITS LABATT ICE BEER IN MARCH BUT THE COMPANY WAS SCOOPED BY THE LAUNCH FOUR DAYS EARLIER OF MOLSON CANADIAN ICE DRAFT WHICH MOLSON WAS BILLING AS ICEFILTERED ACCORDING TO LABATT'S LAWSUIT MOLSON BEGAN USING THE TERM ICEBREWED IN ITS MARKETING IN LATE JUNE A LABATT SPOKESWOMAN SAID MOLSON'S BEERS AREN'T ICEBREWED BECAUSE THIS LEGALLY REFERS ONLY TO LABATT'S PROPRIETARY TECHNIQUE 9308270004 930827 HEAVY DEMAND SEEN FOR IPO BY BARITO PACIFIC INDONESIAN OFFERING COMES AS FUND MANAGERS SEEK US MARKET ALTERNATIVE BY BOB HAGERTY AND RAPHAEL PURA STAFF REPORTERS OF THE WALL STREET JOURNAL FUND MANAGERS PREDICT HEAVY DEMAND FOR THE 295 MILLION INITIAL PUBLIC SHARE OFFERING OF INDONESIAN PLYWOODMAKER PT BARITO PACIFIC TIMBER IN UNOFFICIAL TRADING THE SHARES WERE BEING OFFERED IN JAKARTA ON THURSDAY AT AROUND 7800 RUPIAH 372 EACH WELL ABOVE THE OFFICIAL PRICE OF 7200 RUPIAH THE ISSUE IS HITTING THE MARKET JUST AS FUND MANAGERS ARE SCRAMBLING FOR ALTERNATIVES TO THE US STOCK MARKET WHICH IS BOUNCING ALONG AT WHAT SOME CONSIDER DANGEROUSLY HIGH LEVELS AMONG THE MOST POPULAR ALTERNATIVES ARE THE EMERGING MARKETS OF DEVELOPING NATIONS SUCH AS INDONESIA WHERE OFFERINGS ON THE SCALE OF BARITO'S ARE UNUSUAL WHAT'S MORE THE PRICE OF BARITO'S OFFERING EQUAL TO ABOUT 12 TIMES PROJECTED 1994 EARNINGS IS WIDELY CONSIDERED REASONABLE OR EVEN CHEAP GIVEN THE RECENT SURGE IN PLYWOOD PRICES EVEN SO THE LIMITED INFORMATION AVAILABLE ON THE COMPANY AND THE REST OF THE BUSINESS EMPIRE OF PRAJOGO PANGESTU THE TIMBER TYCOON WHO CONTROLS BARITO HAS LEFT SOME BIG INVESTORS WARY OF THE SHARES' LONGTERM PROSPECTS THE MARKET DOESN'T KNOW ENOUGH ABOUT THE COMPANY TO MAKE A REAL FUNDAMENTAL JUDGMENT SAYS MARK TEN HOVE A DIRECTOR OF THORNTON INVESTMENT MANAGEMENT HONG KONG LTD BUT THERE IS CERTAINLY ROOM FOR CAUTION MR TEN HOVE SAYS THORNTON EXPECTS TO BUY A MODEST NUMBER OF SHARES PARTLY IN ANTICIPATION OF SHORTTERM GAINS AFTER THE FORMAL OFFERING PERIOD WHICH OPENED WEDNESDAY AND ENDS SEPT 2 BARITO PACIFIC PRODUCES 15 MILLION CUBIC METERS OF HARDWOOD PLYWOOD A YEAR TWICE THE OUTPUT OF ITS NEAREST INDONESIAN COMPETITOR THAT REPRESENTS ABOUT 15 OF WORLDLEADING INDONESIA'S ESTIMATED PRODUCTION IN 1993 BECAUSE BARITO PACIFIC AND MR PRAJOGO'S PRIVATE CONCERNS CONTROL HUGE CONCESSIONS OF TROPICAL FOREST A STEADY SUPPLY OF RAW LOGS FOR MILLING IS GUARANTEED BULLISH ANALYSTS SAY THAT BECAUSE BARITO PACIFIC CONTROLS ITS LOG SUPPLIES HAS PLENTY OF PRODUCTION CAPACITY AND FACES A RELAXED CREDITREPAYMENT SCHEDULE ANY RISE IN TIMBER PRICES IS LIKELY TO RESULT IN WINDFALL PROFIT MARK MOBIUS AN EMERGINGMARKETS SPECIALIST IN THE HONG KONG OFFICE OF THE USBASED FRANKLIN/TEMPLETON GROUP SAYS FUNDS HE HELPS MANAGE ARE SEEKING TO BUY 20 MILLION OF THE SHARES WE'D BUY MORE IF WE COULD GET IT HE SAYS DESCRIBING THE OFFERING AS A RARE OPPORTUNITY TO INVEST IN A MAJOR FASTGROWING INDONESIAN COMPANY OTHER POTENTIAL INVESTORS HOWEVER CONTEND THAT BARITO HASN'T TOLD THE MARKET ENOUGH ABOUT THE IDENTITIES OF ITS MAIN SHAREHOLDERS DEBT LEVELS AT AFFILIATED COMPANIES AND HOW THE OFFERING'S PROCEEDS WILL BE USED YOU GET ONLY HALF THE STORY COMPLAINS CHARLES TESTUZ AN ANALYST AT GENEVABASED PICTET & CO WHO SAYS HIS FIRM WILL BUY ONLY VERY VERY FEW BARITO SHARES OTHERS WORRY THAT MR PRAJOGO'S CLOSE LINKS WITH PRESIDENT SUHARTO INVALUABLE NOW COULD TURN INTO LIABILITIES IN THE POSTSUHARTO ERA ANOTHER CONCERN IS THAT PT TASPEN THE INDONESIAN GOVERNMENT PENSION FUND MAY DECIDE TO UNLOAD ON THE MARKET PART OF THE 2032 STAKE IT ACQUIRED IN BARITO EARLIER THIS YEAR MR MOBIUS DISMISSES SUCH FEARS HE ARGUES THAT BARITO AND INDONESIAN MARKET REGULATORS HAVE A BIG STAKE IN ENSURING THAT THE SHARES ARE A GOOD LONGTERM BUY GIVEN THE NEED TO ATTRACT INTERNATIONAL INVESTORS TO FUTURE ISSUES ALTHOUGH MR MOBIUS SAYS FLUCTUATIONS IN PLYWOOD PRICES COULD SEND BARITO SHAREHOLDERS ON A BUMPY RIDE AT TIMES HE IS BULLISH ABOUT LONGTERM PROSPECTS FOR PLYWOOD AND OTHER BUILDING MATERIALS IN ASIA PARTICULARLY BECAUSE OF DEMAND FROM CHINA 9308270003 930827 MCGRAWHILL TO BUY REST OF JOINT VENTURE FOR 3375 MILLION NEW YORK MCGRAWHILL INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE FOR 3375 MILLION THE OTHER HALF OF MACMILLAN/MCGRAWHILL SCHOOL PUBLISHING CO THE VENTURE WAS FORMED IN 1989 WITH MACMILLAN INC WITH EACH PARTY OWNING 50 MCGRAWHILL SAID THE LETTER OF INTENT WAS SIGNED ON BEHALF OF MAXWELL COMMUNICATION CORP MACMILLAN'S PARENT BY THE JOINT ADMINISTRATOR HANDLING MAXWELL COMMUNICATION'S AFFAIRS A SPOKESMAN FOR MCGRAWHILL SAID IT MADE THE PURCHASE BECAUSE WE WANT TO STAY IN THE BUSINESS AND WE SEE IT AS STRONG AND GROWING LAST YEAR THE VENTURE HAD NET INCOME OF 191 MILLION AND REVENUE OF 5049 MILLION IT PUBLISHES A WIDE RANGE OF TEXTBOOKS AND SOFTWARE FOR ELEMENTARY AND HIGH SCHOOLS COMMUNITY COLLEGES AND VOCATIONAL SCHOOLS A MCGRAWHILL SPOKESMAN SAID THAT THE BUYOUT HAS ALWAYS BEEN A POSSIBILITY AND THAT MAXWELL COMMUNICATION'S RECENT TROUBLES SHED NEW LIGHT ON IT HE ADDED HOWEVER THAT THE JOINT VENTURE WAS NEVER ENCUMBERED BY THE PROBLEMS OF THE MAXWELL COMPANIES FOLLOWING THE DEATH OF ROBERT MAXWELL CALLING THE PARTNERSHIP BETWEEN THE PUBLISHING GIANTS A MARRIAGE OF CONVENIENCE THAT HAD TO END AT SOME POINT SMITH BARNEY SHEARSON ANALYST JOHN REIDY CHARACTERIZED MCGRAWHILL'S DECISION AS OBVIOUSLY INTELLIGENT MR REIDY SAID THE ACQUISITION WOULD LEAD TO SOME DILUTION OF EARNINGS FOR MCGRAWHILL BUT THE EFFECT ON CASH FLOW WOULD BE INSIGNIFICANTLY NEGATIVE IF AT ALL ON A LONGTERM BASIS THIS TEXTBOOK UNIT IS A NICE STEADY GROWTH BUSINESS THAT'S NOT DEPENDENT ON ADVERTISING MR REIDY SAID NOTING THAT THE PURCHASE WOULD MAKE MCGRAWHILL ONE OF THE TOP PLAYERS IN THE TEXTBOOK MARKET 9308270002 930827 LETTERS TO THE EDITOR US OWES NICARAGUA FOR SINS OF THE PAST IN YOUR JULY 23 EDITORIAL OLLIE NORTH WAS RIGHT YOU BRUSH WITH A BROAD STROKE OF GUILT WHAT THE SANDINISTA MOVEMENT WAS FUNDAMENTALLY ALL ABOUT THE MAY 23 EXPLOSION IN MANAGUA THAT UNEARTHED A CACHE OF EXPLOSIVES AND PRODUCED DOCUMENTARY EVIDENCE OF AN INTERNATIONAL KIDNAPPING RING IS INDEED A TERRORIST PROBLEM TO BE SOLVED BUT IT SHOULDN'T BE SOLVED IN OUR ARMCHAIRS SO FAR AWAY ON THE SAYSO OF SOME DOGGED REPORTING A GUERRILLA LEADER FROM EL SALVADOR ONE FORMER CHILEAN GUERRILLA AND AN HONEST NICARAGUAN PROSECUTOR LET US WAIT FOR THE CONCLUSIONS OF THE OFFICIAL NICARAGUAN AND INTERPOL INVESTIGATIONS BEFORE WE POINT FINGERS OF GUILT FOR MANY DECADES WILLIAM WALKER IN THE MID19TH CENTURY US MARINE OCCUPATION 19091933 SUPPORT FOR SOMOZA DICTATORSHIPS 19371979 AND CONTRA SUPPORT 198390 THE US GOVERNMENT HAS MANIPULATED NICARAGUA THE MINIMAL HUMANITARIAN AND RECONSTRUCTION AID WE'VE PLEDGED TO ITS PEOPLE IS LONG OVERDUE AS A TOKEN OF RETRIBUTION FOR PAST SINS I RECENTLY SPENT 17 DAYS IN NICARAGUA ON A NONPOLITICAL VISIT WORKING WITH NICARAGUANS TO HELP THEM BUILD HOMES IN THE SMALL COMMUNITY OF LOS ROBLES IT WAS A MIND AND SOULBENDING EXPERIENCE THE NICARAGUANS I MET WERE HONEST HARDWORKING BRIGHT PEOPLE WHO WERE ANXIOUS TO MOVE AWAY FROM A STRIFEFILLED PAST AS GOOD NEIGHBORS THE MOST DEMOCRATIC THING WE CAN DO IS TO REIN IN OUR RHETORIC AND LEAVE NICARAGUA TO THE NICARAGUANS ITS ABLE CITIZENS AND LEADERS ARE TRYING TO REBUILD A NATION MEANWHILE THE US SHOULD ACCEPT ITS HISTORICAL RESPONSIBILITIES AND DEMONSTRATE THE QUALITY OF ITS WORLD LEADERSHIP BY PAYING SOME LONG OVERDUE DEBTS 9308270001 930827 TECHNOLOGY BY MICHAEL W MILLER ADVERTISING IS ABOUT TO CREEP ONTO THE INTERNET THE VAST ANARCHIC COMPUTER NETWORK LINKING UNIVERSITIES AND CORPORATIONS WORLDWIDE IN THEORY THE INTERNET BOASTS THE KIND OF STATISTICS THAT MAKE HEARTS RACE ON MADISON AVENUE MORE THAN FIVE MILLION PEOPLE IN 50 COUNTRIES USE IT TO EXCHANGE ELECTRONIC MAIL WITH TRAFFIC RISING AS MUCH AS 15 A MONTH INTERNET IS SOMETIMES DESCRIBED AS THE FASTEST GROWING TELECOMMUNICATIONS SYSTEM EVER INCLUDING THE PHONE NETWORK BUT SO FAR ADVERTISERS HAVEN'T CLUTTERED THE NETWORK WHOSE WORKINGS STILL ARE TOO TECHNICAL AND DISORGANIZED FOR MOST LAYPEOPLE NOW THAT IS STARTING TO CHANGE ONE BATCH OF ELECTRONIC ADS WILL COME IN GLOBAL NETWORK NAVIGATOR A PIONEERING EFFORT TO DISTRIBUTE A MAGAZINE OVER THE INTERNET THE CREATOR TECHNICAL PUBLISHER O'REILLY & ASSOCIATES INC OF SEBASTOPOL CALIF IS HUSTLING TO LINE UP ADVERTISERS FOR A SEPTEMBER LAUNCH O'REILLY IS HOPING ADVERTISERS WILL TRY A RISKY NEW MEDIUM BECAUSE IT OFFERS SO MUCH MORE SPACE THAN AN OLDFASHIONED MAGAZINE SINCE THE MAGAZINE IS ENTIRELY ELECTRONIC DESIGNED TO BE BROWSED THROUGH ON A PERSONAL COMPUTER O'REILLY CAN LOAD IT UP WITH ADS ENTIRE CATALOGS AND INFORMATIONKITS FROM ADVERTISERS FOR PRICES FROM 200 TO 5000 MORE INTERNET ADS ARE COMING FROM A NEW SERVICE USING THE NETWORK TO SEND FREE FAXES AROUND THE WORLD ITS MASTERMIND CARL MALAMUD IS MARSHALLING AN INTERNATIONAL BUCKETBRIGADE OF ORGANIZATIONS THAT WILL AGREE TO RECEIVE INTERNET ELECTRONIC MAIL AND SEND IT OUT VIA FAX THE ADS ARE MR MALAMUD'S BAIT TO LURE ENLISTEES TO THE BRIGADE WHICH ALREADY INCLUDES SUN MICROSYSTEMS NASA AND THE UNIVERSITY OF MICHIGAN IN RETURN THEY GET TWO PIECES OF AD SPACE TO USE OR SELL FOR ABOUT A NICKEL EACH ON THE FAX'S COVER SHEET AND ON AN EMAIL MESSAGE TO THE FAX'S SENDER CONFIRMING DELIVERY MR MALAMUD'S WASHINGTON GROUP INTERNET MULTICASTING SERVICE HAS ALREADY LINED UP TWO ADVERTISERS PUBLISHER PRENTICEHALL AND THE COMPUTER LITERACY BOOKSTORE CHAIN SOME CUSTOMERS REPORT UNUSUAL HASSLES PLACING ORDERS WITH AMBRA COMPUTER CORP INTERNATIONAL BUSINESS MACHINES' NEW LINE OF MAILORDER PCS DAVID HARRISON A WASHINGTON LAWYER SAYS HE EAGERLY ORDERED AN AMBRA ON AUG 3 THE DAY IT BEGAN ADVERTISING AND WAS TOLD TO EXPECT HIS MACHINE IN THREE TO FIVE DAYS HE SAYS HE NEVER RECEIVED THE PC AND DESPITE 50 PHONE CALLS OVER THE ENSUING WEEKS COULD NEVER FIND OUT THE STATUS OF HIS ORDER MARK LEWIS A TRUMBULL CONN COMPUTER CONSULTANT WHO ORDERED AN AMBRA PC CALLED THREE DAYS LATER TO MAKE SURE IT WAS SHIPPED THEY SAID WE DON'T HAVE ANY SYSTEMS IN PLACE TO SAY WHERE YOUR ORDER IS' MR LEWIS SAYS A WEEK LATER HE CANCELED HIS ORDER HE SAYS HE MADE REPEATED FOLLOWUP CALLS BUT NO ONE EVER CONFIRMED HIS CANCELLATION HE WORRIES HE STILL WILL SEE A CHARGE FROM AMBRA ON HIS CREDIT CARD TOM GRESHAM OF NATCHITOCHES LA A FREELANCE WRITER ABOUT OUTDOOR SPORTS ORDERED AN AMBRA BUT CHANGED HIS MIND THE NEXT DAY AND CALLED TO CANCEL AFTER A WEEK OF CALLS HE TOO HAD A CLERK TELL HIM THAT THE AMBRA ORDER SYSTEM COULDN'T CONFIRM HIS CANCELLATION AT AMBRA A SPOKESMAN SAYS THE COMPANY'S COMPUTERS DO TRACK ORDERS AND CANCELLATIONS AND THE THREE CALLERS WHO HAD TROUBLE MUST HAVE BEEN UNUSUAL CASES HE SAYS AMBRA HAS HAD DOUBLE THE NUMBER OF CALLS IT EXPECTED THOUGH HE WOULDN'T PROVIDE FIGURES I'D ATTRIBUTE THIS TO THE VOLUME OF CALLS MORE THAN ANYTHING ELSE HE SAYS IT'S PRETTY CRAZY BUT IT'S A GOOD KIND OF CRAZY AFTER MOUNTING PRESSURE THE US GOVERNMENT IS TAKING NEW STEPS TO MAKE VALUABLE PUBLIC RECORDS ACCESSIBLE TO PCS AROUND THE COUNTRY IN JUNE PRESIDENT CLINTON SIGNED A BILL ORDERING THE GOVERNMENT PRINTING OFFICE TO PUT THE PROCEEDINGS OF CONGRESS AND FEDERAL REGULATORY AGENCIES ONLINE AT LOW COST PLANS CALL FOR THE SYSTEM TO BE READY NEXT SUMMER IN JULY THE LIBRARY OF CONGRESS SET UP A NEW SYSTEM FOR DIALING INTO THE US CONGRESS'S INTERNAL DATABASE ABOUT THE STATUS OF BILLS RESOLUTIONS AND AMENDMENTS MEANWHILE THIS SUMMER NEWT GINGRICH R GA PETE STARK D CALIF AND FIVE OTHER US REPRESENTATIVES BECAME THE FIRST CONGRESSMEN WITH INTERNET EMAIL ADDRESSES THE HOUSE INFORMATION SYSTEMS OFFICE IS HOPING EVENTUALLY TO OUTFIT THE ENTIRE CONGRESS WITH ELECTRONIC MAILBOXES NOW PUBLICINTEREST GROUPS ARE PRESSING FOR GREATER PUBLIC ACCESS TO OTHER VALUABLE FEDERAL DATABASES THE TAXPAYER ASSETS PROJECT A WASHINGTON GROUP IS FOCUSING ON THE SECURITIES AND EXCHANGE COMMISSION'S CORPORATE FILINGS AND THE JUSTICE DEPARTMENT'S VAST ELECTRONIC STOREHOUSE OF LAWS AND REGULATIONS MOST AMERICANS HAVEN'T HEARD OF THINKING MACHINES INC'S CM5 SUPERCOMPUTER BUT MILLIONS OF THEM SAW ONE THIS SUMMER THANKS TO A PUBLICITY COUP FOR THE SMALL CAMBRIDGE MASS COMPANY THE CM5 WON A CAMEO ROLE IN JURASSIC PARK AS THE SLEEK BLINKING BLACK BOX THAT CONTROLS ALL OF THE DINOSAUR PARK'S WORKINGS THE CASTING DECISION WAS ESPECIALLY SWEET FOR THINKING MACHINES BECAUSE ARCHRIVAL CRAY WAS SPECIFICALLY NAMED AS THE COMPUTER'S BRAND IN THE ORIGINAL MICHAEL CRICHTON NOVEL OFFICIALS IN STEVEN SPIELBERG'S PRODUCTION COMPANY WHICH MADE THE MOVIE SAY THEY PREFERRED THE CM5'S DESIGN WHICH LOOKED THE LEAST LIKE A SCIENCEFICTION MACHINE MR CRICHTON'S SCRIPT FOR THE MOVIE MENTIONS THINKING MACHINES BY NAME SEVERAL TIMES AND AT ONE PIVOTAL TURN WHEN THE COMPUTER CRASHES A FRANTIC TECHNICIAN EXCLAIMS CALL CAMBRIDGE 9308270176 930708 LETTERS TO THE EDITOR BEETHOVEN'S LATEST THE ERUDITE HASKELL ROSENBERG'S SCORN LETTERS JUNE 25 FOR SGT HIDEKI YAMAZAKI WHO HAD MENTIONED IN A JUNE 1 STORY HOW MUCH HE LOVED BEETHOVEN'S PIANO CONCERTO NO 6 IS MISPLACED BEETHOVEN HIMSELF TRANSCRIBED HIS GREAT VIOLIN CONCERTO FOR PIANO IT WORKS BEAUTIFULLY I HAVE HEARD A WONDERFUL PERFORMANCE OF IT AS BEETHOVEN'S PIANO CONCERTO NO 6 WHICH SEEMS A FITTING DESIGNATION SEE RELATED LETTER LETTERS TO THE EDITOR LOST CONCERTO FOUND WSJ AUG 27 1993 9307080083 YY93 MM08 9308270104 930723 REVIEW & OUTLOOK EDITORIAL OLLIE NORTH WAS RIGHT ON THE NIGHT OF MAY 23 A HUGE EXPLOSION SHOOK THE NICARAGUAN CAPITAL OF MANAGUA WHEN THE SMOKE SETTLED WHATEVER MYTHOLOGY REMAINED ABOUT THE SANDINISTAS A MYTHOLOGY FOMENTED THROUGHOUT THE 1980S BY LIBERALS IN THE US WAS LOST IN THE EXPLOSION'S RUBBLE AFTER TWO BODIES WERE REMOVED AND THE INJURED CARTED OFF TO HOSPITALS THE AREA WAS SURVEYED BY JOURNALISTS AND POLICE THEY DISCOVERED WHAT THE SANDINISTA MOVEMENT WAS FUNDAMENTALLY ALL ABOUT THE BUILDING HELD AN ARMS CACHE OF ENORMOUS DIMENSIONS INCLUDING HUNDREDS OF MACHINE GUNS AND ASSAULT RIFLES TONS OF AUTOMATIC WEAPONS ROUNDS PLASTIC EXPLOSIVES EVEN SURFACETOAIR MISSILES IN ADDITION THE EXPLOSION'S AFTERMATH PRODUCED DOCUMENTARY EVIDENCE OF AN INTERNATIONAL KIDNAPPING RING RUNNING OUT OF A SAFE HAVEN IN MANAGUA THE ARMS HAD BEEN KEPT IN AN ELABORATE SERIES OF REINFORCED CHAMBERS BURIED UNDER AN AUTO REPAIR SHOP THE SHOP WAS OWNED BY A SPANISH BASQUE TERRORIST WHO'D BEEN GIVEN AN ASSUMED NAME AND NICARAGUAN CITIZENSHIP BY THE SANDINISTAS TODAY THE SANDINISTAS CONTINUE TO CONTROL NICARAGUA'S ARMY SECURITY APPARATUS AND IMMIGRATION THREE YEARS AFTER THEIR ELECTORAL DEFEAT A GUERRILLA LEADER FROM EL SALVADOR CLAIMED MOST OF THE WEAPONS SO MUCH FOR THE CREDIBILITY OF BOTH THE SALVADORAN GUERRILLAS AND THE UNITED NATIONS' PEACE COMMISSION WHICH EARLIER IN THE YEAR VETTED THE SALVADORANS AS HAVING DESTROYED ALL THEIR WEAPONS AS FOR THE NICARAGUANS THEMSELVES MANAGUA'S LA PRENSA NEWSPAPER REPORTED THAT THE SERIAL NUMBERS OF 16 OF THE 19 MISSILES HAD BEEN RUBBED OFF AFTER BEING REMOVED FROM THE SITE BY SANDINISTA MILITARY OFFICIALS BUT THE ARMS CACHE WAS SOON DWARFED BY THE DISCOVERY OF MANY BOXES OF DOCUMENTS WHICH DETAIL AN INTERNATIONAL WEB OF KIDNAPPERS THANKS TO THE INTERVENTION OF OFFICIALS FROM INTERPOL AN HONEST NICARAGUAN PROSECUTOR AND SOME DOGGED REPORTING BY NICARAGUANS AND TIM JOHNSON OF THE MIAMI HERALD THE DOCUMENTS HAVE BEEN PIECED TOGETHER TO REVEAL A CONSPIRACY OPERATING FROM MANAGUA BEFORE AND AFTER THE 1990 ELECTORAL DEFEAT OF THE SANDINISTAS IN FACT AFTER THE EXPLOSION FORMER SANDINISTA INTERIOR MINISTER TOMAS BORGE SHOWED UP AT THE TERRORIST SAFE HOUSE IN HIS NIGHT CLOTHES ACCORDING TO THE TIME FRAME OF THE DISCOVERED DOCUMENTS AND TESTIMONY FROM JAILED KIDNAPPERS THE KIDNAPPING RING WAS ORGANIZED IN THE LATE 1980S ONE FORMER CHILEAN GUERRILLA HELD IN A BRAZILIAN JAIL FOR A 1989 KIDNAPPING THERE DATES THE RING'S FOUNDING TO A MEETING OF DOZENS OF MARXIST GUERRILLAS IN HAMBURG GERMANY IN 1988 SOME OF THE DOCUMENTS CONTAIN INFORMATION ABOUT POTENTIAL TARGETS DATING BACK TO 1986 THE KIDNAPPING RING RELIED ON FALSE PAPERS AND PASSPORTS PROVIDED BY THE SANDINISTAS TO MOVE AROUND WHILE PREYING ON TARGETS RECALL THAT ONE OF THE SUSPECTS IN THE WORLD TRADE CENTER BOMBING WAS CARRYING FIVE NICARAGUAN PASSPORTS WHEN ARRESTED IN ADDITION TO THE HUNDREDS OF FALSE PASSPORTS AND SANDINISTAAPPROVED TRAVEL DOCUMENTS DISCOVERED THE MATERIAL INCLUDES DETAILED REPORTS ON THE MOVEMENTS AND DOSSIERS OF MORE THAN 100 POTENTIAL VICTIMS FROM MEXICO ECUADOR BRAZIL AND ELSEWHERE AT LEAST A DOZEN PEOPLE WERE KEPT UNDER CONSTANT SURVEILLANCE INCLUDING MEXICAN BUSINESSMEN CARLOS SLIM EMILIO ASCARRAGA AND ANTONIO GUTIERREZ PRIETO IN ADDITION TO THE PLANNED KIDNAPPINGS SOME DOCUMENTS FOUND AT THE MANAGUA BLAST SITE CONCLUSIVELY LINK KIDNAPPERS CONVICTED ELSEWHERE WITH THE RING CENTERED IN MANAGUA THE PERSONAL EFFECTS OF CANADIANS CHRISTINE LAMONT AND DAVID SPENCER JAILED IN BRAZIL FOR THE 1989 KIDNAPPING OF A WEALTHY BUSINESSMAN WERE FOUND AT THE MANAGUA SITE INCLUDING FAKE IDS AND CREDIT CARDS THE PARTICIPATION OF THIS TERRORIST UNDERGROUND OPERATING WITH SANDINISTA SUPPORT AFTER THE 1990 ELECTION IS PARTICULARLY TROUBLESOME NOT LEAST BECAUSE US TAXPAYERS NOW HELP TO UNDERWRITE THE BILL SINCE 1990 THE US HAS PUMPED MORE THAN 700 MILLION INTO NICARAGUA THE US POLITICAL ESTABLISHMENT SPENT MUCH OF THE 1980S FIGHTING OVER WHETHER IT WAS RIGHT OR WRONG TO SUPPORT THE NICARAGUAN CONTRAS AGAINST THE SANDINISTAS ULTIMATELY THIS DRAMA PLAYED OUT AROUND LT COLONEL OLIVER NORTH WHO SPENT THE SUMMER OF 1987 TESTIFYING BEFORE CONGRESS AND WHO ULTIMATELY WAS CONVICTED ON MINOR CHARGES SUCH AS ACCEPTING PUBLIC MONEY TO BUILD AN ANTITERRORIST FENCE AROUND HIS HOUSE WE NOW HAVE THE SPECTACLE IN 1993 OF SANDINISTA STRONGMAN TOMAS BORGE STANDING IN HIS NIGHT CLOTHES AMID THE RUBBLE OF A SECRET ARMS AND KIDNAPPERS' DOCUMENT CACHE IN MANAGUA OLLIE NORTH WAS RIGHT ABOUT THE SANDINISTAS THEN AND NOW SEE RELATED LETTER LETTERS TO THE EDITOR US OWES NICARAGUA FOR SINS OF THE PAST WSJ AUG 27 1993 9307230008 YY93 MM08 9308270090 930713 REVIEW & OUTLOOK EDITORIAL BEAUTIFYING AMERICA NOTHING SO PERVASIVELY BLIGHTS MANY OF THE NATION'S URBAN AREAS AS GRAFFITI IT NOT ONLY DEFACES PROPERTY BUT IS LINKED IN MOST MINDS ACCURATELY TO AN ATMOSPHERE OF VIOLENCE AND GENERAL LAWLESSNESS IF ANY SOCIAL CRIME CALLED OUT FOR A NO TOLERANCE POLICY IT IS THIS FORM OF RANDOM VANDALISM GIVING UP SOME MARKETERS HAVE CHOSEN INSTEAD TO SELL THEIR PRODUCTS BY EXPLOITING PUBLIC GRAFFITI IN THEIR SALES PITCHES BUT AT LEAST ONE COMMERCIAL ENTERPRISE HAS A DIRECT STAKE IN COMBATING THIS STUFF AND IN SO DOING MIGHT RECOVER SOME GOODWILL FOR ITSELF WE'RE TALKING ABOUT THE BILLBOARD INDUSTRY WHOSE SIGNS HAVE BEEN UNDER INCREASING ATTACK BY TAGGERS IN AREAS SUCH AS LOS ANGELES OFFERING REWARDS AND HIRING LOOKOUTS BILLBOARD COMPANIES HAVE BEEN PRESSING ENFORCEMENT OF THE VANDALISM LAWS AGAINST THOSE WHO VISUALLY LAUGH IN THE FACE OF COMMUNITIES WHEN THE BEFOULERS ARE CAUGHT COMPANY LAWYERS SEEK WHAT THE LOS ANGELES TIMES CALLED STIFF PENALTIES SUCH AS FULL RESTITUTION AND UP TO 200 HOURS OF COMMUNITY SERVICE THOSE DON'T STRIKE US AS PARTICULARLY TOUGH SANCTIONS THE MAYOR OF GARDEN GROVE NEAR LA SUGGESTS MAYBE IT'S TIME TO BRING BACK THE PUBLIC STOCKADES IN ANY CASE CAPTURE AND PREVENTION ARE THE FIRST ORDERS OF BUSINESS AND THE MUCHMALIGNED BILLBOARD CONCERNS CAN BE A BIG ALLY IT'S A USEFUL REMINDER THAT WHERE PROPERTY IS IN PRIVATE HANDS IT IS MOST JEALOUSLY PROTECTED SEE RELATED LETTER LETTERS TO THE EDITOR GET THE BLIGHTERS AND BEAUTIFY AMERICA WSJ AUG 27 1993 9307130124 YY93 MM08 9308270084 930728 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB AMID ALL THE HAGGLING OVER ENERGY TAXES IN WASHINGTON ONE SIMPLE ALARMING FACT SEEMS TO HAVE GONE UNNOTICED TWO WEEKS AGO THE US IMPORTED AN AVERAGE OF 79 MILLION BARRELS OF OIL A DAY THE HIGHEST LEVEL OF IMPORTS FOR ANY WEEK ON RECORD THIS DEPRESSING BENCHMARK COMES AT A TIME WHEN DOMESTIC CRUDE OIL PRODUCTION IS AT ITS LOWEST LEVEL IN 35 YEARS IN SHORT THE US IS MORE DEPENDENT ON IMPORTED OIL THAN EVER YET IN CONGRESS'S CURRENT GASTAX DEBATE THERE IS PRACTICALLY NO THOUGHT DEVOTED TO CONSTRUCTING A REAL ENERGY SECURITY POLICY INSTEAD THE ONLY ISSUES THAT HAVE BEEN DEBATED ARE WHETHER AMERICANS ARE WILLING TO PAY A BROADBASED ENERGY TAX SENATORS HAVE DECIDED THEY AREN'T AND WHETHER LAWMAKERS ARE WILLING TO ADD A FEW PENNIES TO THE GASOLINE TAX THEY PROBABLY ARE BUT NOT ENOUGH TO SIGNIFICANTLY CUT THE FEDERAL DEFICIT IT'S NOW CERTAIN THAT WHATEVER ENERGY PLANK EMERGES IN THE CLINTON ECONOMIC PLAN WILL BE SO DILUTED THAT IT WON'T MAKE ANY REAL DENT IN BUYING AND DRIVING HABITS THOSE WHO SHOULD BE HAPPIEST WITH THE WAY THINGS ARE DEVELOPING IN WASHINGTON TODAY ARE THE OIL SHEIKDOMS OF THE MIDDLE EAST AND THE BARONS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WHATEVER ELSE MAY COME OF THE CURRENT DEFICITREDUCTION STRUGGLE THE DEBATE HAS SHOWN ONCE AGAIN THAT AMERICANS HAVE NO INTEREST IN POLICIES THAT INTERFERE WITH PROFLIGATE CONSUMPTION OF IMPORTED OIL NOR IT APPEARS DOES THE CLINTON ADMINISTRATION HAVE ANY INTEREST IN TAKING ADVANTAGE OF A PERIOD OF CHEAP AND PLENTIFUL OIL TO SET SOME ASIDE FOR A TROUBLED DAY WITH PRICES SLUMPING TO NEAR 16 THEIR LOWEST LEVEL IN YEARS THIS WOULD SEEM A RIPE TIME TO BUY UP SOME OIL AND STORE IT IN THE STRATEGIC PETROLEUM RESERVE DESIGNED TO PROTECT THE US IN CASE OF A FOREIGN CRISIS THAT DISRUPTS OIL FLOWS THE SENSIBLE TIME TO BUY OIL FOR A RESERVE AFTER ALL IS WHEN PRICES ARE LOW RATHER THAN HIGH BUT NO IN ITS EAGERNESS TO SHOW THAT IT IS CUTTING SPENDING THE ADMINISTRATION HAS PROPOSED REDUCING THE RATE AT WHICH THE RESERVE IS FILLED TO 13300 BARRELS A DAY FROM 20000 BARRELS THAT'S LESS THAN A TENTH THE RATE AT WHICH THE RESERVE WAS BEING FILLED SEVERAL YEARS AGO YET ALTHOUGH THE RESERVE HAS ONLY ABOUT HALF THE BILLION BARRELS CONGRESS HAS DECLARED IN THE PAST THAT IT SHOULD HOLD THE HOUSE ALREADY HAS GONE ALONG WITH THE CLINTON PROPOSAL AND THE SENATE SEEMS LIKELY TO DO SO THE PERPLEXING ASPECT IS THAT NONE OF THESE DEVELOPMENTS ARE EVEN BEING DISCUSSED OR DEBATED AS NATIONAL POLICY TAKES SHAPE JUST THREE SUMMERS AFTER IRAQI TANKS THREATENED THE WORLD'S LARGEST OIL FIELDS IN SAUDI ARABIA POLITICAL LEADERS HAVE MADE A COLLECTIVE DECISION TO SIMPLY TAKE THE EASIEST PATH AND IGNORE THE QUESTION OF ENERGY SECURITY THERE'S LITTLE DOUBT WHY THESE QUESTIONS ARE POLITICALLY EASY TO AVOID RIGHT NOW VOTERS ARE HAPPILY WALLOWING IN CHEAP GASOLINE BY THE ESTIMATE OF THE CONGRESSIONAL BUDGET OFFICE THE COMBINATION OF LOWER GASOLINE PRICES IN INFLATIONADJUSTED TERMS AND THE RISING FUEL EFFICIENCY OF CARS HAS CUT THE COST OF GAS NEEDED TO DRIVE 100 MILES ROUGHLY IN HALF SINCE 1976 TO LESS THAN 425 WHILE AMERICANS PAY ABOUT 113 FOR A GALLON OF GASOLINE CONSUMERS IN BRITAIN PAY 268 AND IN JAPAN PAY 425 IT MAY BE THAT THE BEST ECONOMIC AND FOREIGNPOLICY COURSE AT THE MOMENT IS TO PURSUE A LAISSEZFAIRE APPROACH TO ENERGY ONE IN WHICH THE NATION CONCLUDES THAT LETTING THE ECONOMY RUN ON CHEAP IMPORTED OIL IS THE BEST COURSE WHEN ONE LOOKS AT THE WORLD OVERSUPPLY OF OIL THE LIKELIHOOD THAT THE OVERSUPPLY WILL GET WORSE ONCE IRAQ IS BACK IN THE MARKET AND THE FEEBLE STATE OF THE OPEC CARTEL THERE ARE REASONABLE GROUNDS TO CONCLUDE THAT THERE ARE ONLY MINIMAL RISKS TO USING MORE IMPORTED OIL THE DOMESTIC OIL INDUSTRY MAY BE A SHRIVELING GIANT THAT IS ONLY HEADED IN THE DIRECTION THE MARKETPLACE IS RIGHTLY SENDING IT BUT THOSE ISSUES SHOULD BE DEBATED NOT SIMPLY SKIRTED FOR THE SAKE OF FINDING THE MOST POLITICALLY POPULAR COURSE IN FACT THE ENTIRE ENERGY DEBATE THE LAST 13 YEARS HAS BEEN FOCUSED ALMOST ENTIRELY ON REVENUE RAISING SAYS STEVE BELL A FORMER CONGRESSIONAL STAFFER WHO NOW IS A MANAGING DIRECTOR OF SALOMON BROTHERS INC OILSTATE SENATORS NOTABLY OKLAHOMA DEMOCRAT DAVID BOREN OBVIOUSLY THINK THEY ARE PROTECTING THE INTERESTS OF THEIR FRIENDS IN THE DOMESTIC OIL INDUSTRY BY FIGHTING ENERGY TAXES IN THE SHORT RUN THEY MAY BE RIGHT BUT IN THE LONG TERM IT'S FAR FROM CLEAR THAT THEY ARE DOING THE US OIL INDUSTRY ANY GOOD BY MANEUVERING CONGRESS INTO CHEAPENERGY POLICIES THAT DO LITTLE MORE THAN ENCOURAGE THE US TO BURN UP MORE IMPORTED OIL THE CLINTON ADMINISTRATION PROMISES TO ADDRESS THESE QUESTIONS IN THE FALL WHEN THE ENERGY DEPARTMENT IS TO PRODUCE AN ENERGY POLICY PLAN THAT HOWEVER WON'T DO MUCH TO ENLIGHTEN THE CURRENT PSEUDOENERGY DEBATE SEE RELATED LETTER LETTERS TO THE EDITOR DON'T WORRY WE'RE WORRYING WSJ AUG 27 1993 9307280089 YY93 MM08 9308260151 930826 POLITICS & POLICY WITH BROADER AGENDA SCARCE CORPORATE FUNDS MARCH ON WASHINGTON TO MARK 30TH ANNIVERSARY BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THIRTY YEARS AGO FROM THE STEPS OF THE LINCOLN MEMORIAL MARTIN LUTHER KING JR RIVETED A CROWD OF 250000 WITH HIS HISTORIC I HAVE A DREAM SPEECH THE WORDS SEARED INTO THE NATION'S MEMORY AND THE EVENT HASTENED PASSAGE OF EPOCHAL LEGISLATION GRANTING AMERICANS PROTECTIONS AGAINST DISCRIMINATION IN THE WORKPLACE THE VOTING BOOTH AND THE HOUSING MARKET NOW 30 YEARS LATER AN ANNIVERSARY RECREATION OF THE 1963 MARCH ON WASHINGTON TO BE HELD THIS WEEKEND IS EXPECTED TO DRAW NOT 200000 NOR EVEN 100000 BUT TENS OF THOUSANDS ACCORDING TO ITS CHIEF ORGANIZER WALTER FAUNTROY THE FORMER DELEGATE TO CONGRESS FROM THE DISTRICT OF COLUMBIA UNLIKE THE PREVIOUS MARCH'S HIGHLY FOCUSED CIVIL RIGHTS AGENDA THE NEW MARCH'S LEGISLATIVE PRIORITIES ARRIVED AT THROUGH NEGOTIATIONS WITH PARTICIPATING GROUPS AS VARIED AS THE ENVIRONMENTAL DEFENSE FUND AND THE AMERICAN ASSOCIATION OF RETIRED PERSONS INCLUDE OPPOSITION TO THE NORTH AMERICAN FREE TRADE AGREEMENT IN ITS PRESENT FORM MORE FEDERAL REVENUESHARING FOR LOCAL GOVERNMENTS AND A RELIGIOUSFREEDOM ISSUE FOR NATIVE AMERICANS THE SPECIFICS OF WHICH MR FAUNTROY IN AN INTERVIEW COULDN'T RECALL WHILE THE ORIGINAL MARCH WAS FOR JOBS AND FREEDOM THIS TIME THEY'VE BROADENED THE DEMANDS SAYS RACHELLE HOROWITZ TRANSPORTATION DIRECTOR FOR THE ORIGINAL 1963 MARCH AND NOW POLITICAL DIRECTOR OF THE AMERICAN FEDERATION OF TEACHERS WHICH IS PARTICIPATING IN THE 1993 GATHERING THE RESULT SHE SAYS IS THAT NO ONE GROUP FEELS A VESTED INTEREST IN THIS MARCH CORPORATIONS WHICH IN THE PAST 30 YEARS HAVE BECOME MAJOR UNDERWRITERS OF SUCH MAINSTREAM CIVIL RIGHTS ORGANIZATIONS AS THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE AREN'T CONTRIBUTING HEAVILY TO THIS MARCH ARTISTS SUCH AS THE ACTOR MORGAN FREEMAN AND POET MAYA ANGELOU WHO INITIALLY AGREED TO PARTICIPATE IN AN I REMEMBER PROGRAM AT THE KENNEDY CENTER HAVE NOW PULLED OUT AND QUITE A FEW PEOPLE WITH A STRONG INTEREST IN THE LIFE AND WORK OF THE REV KING HAVE ONLY RECENTLY LEARNED THAT THE MARCH WILL TAKE PLACE AT ALL MY SENSE IS THERE'S BEEN VERY LITTLE PUBLICITY SAYS DAVID GARROW AUTHOR OF BEARING THE CROSS A PULITZER PRIZEWINNING KING BIOGRAPHY I'VE HEARD VERY LITTLE TALK ABOUT IT WITH ORGANIZERS OF THE MARCH WORKING AROUND THE CLOCK IT'S STILL POSSIBLE THAT THE LOOMING FIASCO OF A POORLY ATTENDED DEFICITRIDDEN TRIBUTE CAN BE AVERTED BUT AT THIS LATE DATE THE 1993 MARCH ON WASHINGTON SEEMS UNLIKELY TO REVIVE THE FERVOR AND SPIRIT OF 1963 OR EVEN OF A 20THANNIVERSARY MARCH ALSO ORGANIZED BY MR FAUNTROY WHY SO LITTLE ENTHUSIASM MR FAUNTROY A MINISTER WHO HELPED ORGANIZE THE 1963 MARCH AND IS NOW CHAIRMAN OF THE SOUTHERN CHRISTIAN LEADERSHIP CONFERENCE BLAMES 12 YEARS OF POLICIES THAT HAVE DRAINED THE FORCES OF GOOD WILL OF A WINNING ATTITUDE IN MR FAUNTROY'S VIEW TRADITIONAL SUPPORTERS OF CIVIL RIGHTS HAVE BEEN SO BRUTALLY DISAPPOINTED BY THE POLICIES OF THE REAGAN AND BUSH ADMINISTRATIONS THAT THEY ARE RELUCTANT TO GET INVOLVED THE ASCENT OF DEMOCRAT BILL CLINTON HEARTENS THE MARCH'S SUPPORTERS BUT PRESIDENT CLINTON UNLIKE JOHN F KENNEDY IN 1963 WON'T BE MEETING WITH CIVIL RIGHTS LEADERS AFTER THE MARCH THE ORGANIZERS WERE TOLD THAT'S BECAUSE MR CLINTON WILL STILL BE ON VACATION ON MARTHA'S VINEYARD WHERE HE HAS BEEN SOCIALIZING WITH SEVERAL MEMBERS OF THE KENNEDY FAMILY AND STAYING AT THE HOME OF A FORMER MEMBER OF PRESIDENT KENNEDY'S CABINET A HANDFUL OF CORPORATIONS HAVE AGREED TO DONATE CASH GOODS OR SERVICES TO THE MARCH INCLUDING COCACOLA CO MCI COMMUNICATIONS INC PEPSICO INC AND SONY CORP BUT MR FAUNTROY SAYS THE MONEY HAS NOT FLOWED AS FREELY AS IN THE PAST ONE POSSIBLE REASON HE SAYS IS THAT CORPORATE AMERICA MAY BE TURNED OFF BY THE MARCHERS' RESISTANCE TO THE NAFTA AGREEMENT WHICH HE ASSERTS WOULD ENHANCE THE ABILITY OF US BUSINESSES TO MOVE THEIR CAPITAL AND THEIR PLANTS OFFSHORE BUT NEITHER MR FAUNTROY NOR ROBBIN ANDRADE THE MARCH'S NATIONAL FINANCE COMMITTEE COORDINATOR CAN RECALL HEARING SUCH A COMPLAINT FROM ANY CORPORATION SOLICITED TO CONTRIBUTE IN THE VIEW OF MR GARROW THE AUTHOR INCLUDING NAFTA ON THE MARCH'S AGENDA IS JUST WEIRD THE NOTION THAT OPPOSING NAFTA IS A CIVIL RIGHTS ISSUE IF THAT'S WHAT THEY'RE SUGGESTING STRIKES ME AS REALLY OFF THE WALL BUT THE ISSUE IS IMPORTANT TO LABOR UNIONS AND AMONG THE COCHAIRMEN OF THE MARCH IS LANE KIRKLAND PRESIDENT OF THE AFLCIO WHICH OPPOSES NAFTA ROGER WILKINS A PROFESSOR OF HISTORY AT GEORGE MASON UNIVERSITY AND A VETERAN OF THE CIVIL RIGHTS MOVEMENT SAYS NAFTA IS NOT IRRELEVANT THE MARCH 30 YEARS AGO WAS FOR JOBS AND FREEDOM HE SAYS THAT WHEN BLACK PEOPLE SEE NAFTA THEY SEE A TREMENDOUS THREAT BECAUSE IT COULD PUT LOWSKILLED BLACKS OUT OF WORK EVEN SO MR WILKINS SAYS ONE WOULD HAVE TO ASK WHETHER THE ORGANIZERS OF THE MARCH HAVE SPOKEN POWERFULLY ENOUGH EITHER TO THE BLACK COMMUNITY OR TO THAT BROADER COMMUNITY THAT KING WAS TRYING TO TALK TO CURTIS KING A DALLASBASED ARTS ADMINISTRATOR WHO IS ORGANIZING THE KENNEDY CENTER GALA AND A COMMEMORATIVE ART EXHIBIT ON THE 1963 MARCH SAYS MR FREEMAN AND MS ANGELOU CANCELED THEIR PLANS TO PARTICIPATE BECAUSE OF PREVIOUS ENGAGEMENTS MR FREEMAN WILL BE WORKING ON A FILM WHILE MS ANGELOU WILL BE OUT OF THE COUNTRY HE SAYS MEANWHILE MR KING HAS SOLICITED 360 CORPORATIONS FOR CONTRIBUTIONS FROM 5000 TO 30000 AND NOT ONE HAS YET OFFERED TO MAKE A CASH DONATION YOU HOPE THAT OUT OF 360 LETTERS JUST ONE WILL COME THROUGH SAYS MR KING WHO IS NO RELATION TO MARTIN LUTHER KING AT THIS POINT IT HASN'T HAPPENED BUT MR KING'S SOLICITATIONS WENT OUT LATE SOME WERE MAILED AS RECENTLY AS JULY 17 MAKING IT EASY FOR CORPORATIONS TO BEG OFF DEBORAH THOMPSON AN ADMINISTRATIVE MARKETING ASSISTANT IN XEROX CORP'S WASHINGTON OFFICE RECEIVED ONE SOLICITATION FROM MR KING SHE PASSED IT UP TO HER SUPERIORS BUT SAYS I THINK IT GOT LOST IN THE SHUFFLE WHEN A NEW REGIONAL VICE PRESIDENT WAS INSTALLED MEANWHILE THOMAS LOUNDS JR PUBLIC AFFAIRS DIRECTOR OF FLAGSTAR COS THE CORPORATE PARENT OF THE DENNY'S RESTAURANT CHAIN DECLINED IN A LETTER TO SUPPORT THE EVENTS BECAUSE OF BUDGET LIMITATIONS MEANWHILE PHILIP MORRIS COS SAYS IT NEVER RECEIVED MR KING'S LETTER SOLICITING MONEY AND HASN'T BEEN SOLICITED FOR ANY CONTRIBUTIONS TO THE MARCH AT ALL PHILIP MORRIS HAS LONG BEEN A SUPPORTER OF CIVIL RIGHTS SAYS SPOKESWOMAN DARIENNE DENNIS BUT THESE THINGS NEED A LOT OF LEAD TIME IF YOU'RE GOING TO PULL TOGETHER A LOT OF COMPANIES AND BIG MONEY JOHN LEWIS WHO HELPED ORGANIZE THE 1963 MARCH AND NOW A DEMOCRATIC CONGRESSMAN FROM GEORGIA WILL PARTICIPATE IN THIS WEEKEND'S ANNIVERSARY MARCH AGREES YOU JUST CANNOT SAY ONE DAY WE'RE GOING TO HAVE A MARCH IN WASHINGTON HE SAYS IT HAS TO GROW OUT OF SOMETHING 9308260150 930826 WHO'S NEWS OHIO CASUALTY CORP OHIO CASUALTY CORP HAMILTON OHIO BARRY S PORTER WAS NAMED CHIEF FINANCIAL OFFICER A NEW POSITION FOR THE INSURANCE CORPORATION AND ITS SUBSIDIARIES MR PORTER 56 YEARS OLD WILL CONTINUE AS TREASURER 9308260149 930826 BUSINESS BRIEF WESTVACO SLATES ACCOUNTING CHANGES OTHER MOVES TO BOOST PROFIT CUT COSTS NEW YORK PAPER COMPANY WESTVACO CORP ANNOUNCED A SERIES OF ACCOUNTING CHANGES AND ONETIME CHARGES IT SAID WILL SLIGHTLY BOOST NET INCOME THIS YEAR AND PRODUCE ABOUT 30 MILLION IN ANNUAL COST REDUCTIONS THE LARGEST PART OF THE CHARGES INVOLVES AN EARLYRETIREMENT PROGRAM FOR ABOUT 350 SALARIED EMPLOYEES AGE 60 OR MORE AND WITH AT LEAST FIVE YEARS' EXPERIENCE THE COMPANY'S FIRST SUCH PROGRAM THE EARLYRETIREMENT COSTS WILL BE INCLUDED IN A SPECIAL PRETAX CHARGE OF 50 MILLION OR 46 CENTS A SHARE THE CHARGE COVERS ANTICIPATED REGULATORY AND SAFETY ISSUES ACCELERATED APPLICATION OF NEW TECHNOLOGY AND COST REDUCTION A SPOKESMAN SAID THE REGULATORY EXPENDITURES REFLECT A NUMBER OF EXPECTED FEDERAL REGULATIONS COMING ON THE BOOKS IN THE YEARS AHEAD FROM DRIVER SAFETY TRAINING TO ERGONOMICS AS WELL AS EXPECTED ENVIRONMENTAL RULES THE VARIOUS STEPS AND CUTS THE COMPANY SAID WILL PRODUCE ANNUAL SAVINGS OF ABOUT 24 MILLION OR 22 CENTS A SHARE ALTHOUGH IT ISN'T COMMON TO TREAT WHAT APPEAR TO BE CONTINUING EXPENDITURES AS ONETIME ITEMS SUCH TREATMENT ISN'T FORBIDDEN BY ACCOUNTING RULES ACCOUNTANTS SAY IN ADDITION WESTVACO PLANS A PRETAX CHARGE OF 12 MILLION OR 11 CENTS A SHARE IN THE FOURTH QUARTER FOR EXPENSES RELATED TO EARLY RETIREMENT OF DEBT THE TWO SPECIAL CHARGES TOGETHER TOTAL ABOUT 377 MILLION AFTERTAX OR 57 CENTS A SHARE THE COMPANY WILL ADOPT THREE REQUIRED ACCOUNTING CHANGES A CHANGE IN ACCOUNTING FOR POSTRETIREMENT BENEFITS OTHER THAN PENSIONS WILL REDUCE NET INCOME 14 MILLION A STANDARD FOR OTHER POSTEMPLOYMENT BENEFITS WILL REDUCE NET INCOME BY 1 MILLION AND A CHANGE IN ACCOUNTING FOR DEFERRED TAXES WILL INCREASE NET INCOME 59 MILLION WESTVACO SAID THE RETROACTIVE FEATURE OF THE RECENTLY ADOPTED FEDERAL TAX/BUDGET BILL WILL REDUCE NET INCOME THIS YEAR BY ABOUT 2 MILLION OR THREE CENTS A SHARE ALTOGETHER THE CHANGES WILL INCREASE NET INCOME BY ABOUT 44 MILLION OR SIX CENTS A SHARE IN FISCAL 1993 THE COMPANY SAID THE FIRST CALL ANALYSTS' CONSENSUS EARNINGS ESTIMATE IS NET INCOME OF 132 A SHARE FOR THE FISCAL YEAR ENDING OCT 31 AND 191 A SHARE IN FISCAL 1994 WESTVACO SHARES CLOSED YESTERDAY AT 3725 UP 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9308260148 930826 INTERNATIONAL BASEL AREA CONSUMER PRICES BASEL SWITZERLAND CONSUMER PRICES IN THE BASEL AREA ROSE 06 IN AUGUST FROM JULY AND INCREASED 39 FROM A YEAR EARLIER THE LOCAL STATISTICS OFFICE SAID IN JULY THE CONSUMER PRICE INDEX DECLINED 01 MONTHTOMONTH AND ROSE 37 FROM A YEAR EARLIER 9308260147 930826 WHO'S NEWS INFONOW CORP INFONOW CORP BOULDER COLO MARK J BRONDER 42 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS COMPUTER SOFTWARE COMPANY HE SUCCEEDS DOUGLAS D BORNE 44 WHO RESIGNED IN DECEMBER MR BRONDER WAS DIRECTOR OF INFORMATION SYSTEMS FOR CUSTOMER SUPPORT AT SUN MICROSYSTEMS INC 9308260146 930826 INTERNATIONAL DANISH VEHICLE REGISTRATIONS COPENHAGEN DANISH NEWVEHICLE REGISTRATIONS ROSE 09 IN JULY TO 8436 UNITS FROM 8364 IN JULY 1992 ACCORDING THE NATIONAL STATISTICS AGENCY THE 1992 TREND OF DECLINING NUMBERS OF NEWCAR REGISTRATIONS APPEARS TO HAVE REACHED A TURNING POINT IN JULY 1993 THE AGENCY SAID 9308260145 930826 INTERNATIONAL BRAZILIAN CONSUMER PRICES LEAP RIO DE JANEIRO CONSUMER PRICES IN 11 MAJOR CITIES IN BRAZIL ROSE 32 BETWEEN JULY 16 AND AUG 13 THE GOVERNMENT SAID THE PRICE INDEX WAS UP SLIGHTLY FROM 31 IN JULY IT ADDED THE INCREASE WAS LED BY A 35 RISE IN HOUSING COSTS 9308260144 930826 WILLIAMS COS UNIT TO REVAMP SAN FRANCISCO WILTEL A UNIT OF WILLIAMS COS SAID IT WILL RESTRUCTURE ITS BUSINESS TO FOCUS ON THE DATA COMMUNICATIONS MARKETPLACE THE COMPANY SAID IT WILL ADD MARKETING AND TECHNICAL DATA SPECIALISTS IN THE NEXT FEW MONTHS TO BOLSTER ITS DATA FOCUS WILTEL SAID IT ALSO WILL RESTRUCTURE VARIOUS BUSINESS UNITS TO STRATEGICALLY SUPPORT DATA COMMUNICATIONS 9308260143 930826 INTERNATIONAL SWEDISH RETAIL SALES STOCKHOLM SWEDISH RETAIL SALES WERE DOWN 67 IN JUNE FROM A YEAR EARLIER THE NATIONAL STATISTICS AGENCY SCB SAID SEPARATELY THE SCB ALSO REPORTED THAT SWEDISH IMPORT AND EXPORT PRICES WERE HIGHER IN JULY AFTER DECREASES IN JUNE AND MAY THE STATISTICS AGENCY ATTRIBUTED THE INCREASE IN IMPORT PRICES CHIEFLY TO HIGHER CRUDE OIL PRICES UP 7 AND 31 HIGHER PRICES ON IRON AND STEEL GOODS 9308260142 930826 COMPUTERS THIS TIME PC MAKERS VOW HOME MODELS WILL BE EASY AND USEFUL AS WELL AS CHEAP BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL THE PERSONAL COMPUTER WARS ARE COMING HOME AGAIN AFTER YEARS OF TRYING MOSTLY UNSUCCESSFULLY TO CONVINCE CONSUMERS THAT PERSONAL COMPUTERS ARE AS INDISPENSABLE AT HOME AS THEY ARE AT THE OFFICE THE NATION'S BIG PC MAKERS ARE GEARING UP FOR A MAJOR NEW BATTLE FOR NONBUSINESS BUSINESS AND THIS TIME AROUND THEY SWEAR THINGS ARE GOING TO BE DIFFERENT COMPAQ COMPUTER CORP THE HOUSTONBASED COMPANY THAT HAS LATELY BECOME THE INDUSTRY'S TRENDSETTER WILL OFFICIALLY JOIN THE BATTLE TODAY BY INTRODUCING TWO MACHINES THAT HUM INTO ACTION WHEN A SINGLE CORD IS PLUGGED IN AND A SIMPLE ONOFF SWITCH IS FLIPPED THE NEW MODELS WILL FEATURE AN OVERSIZED SCREEN THAT LOOKS MORE LIKE A TELEVISION SET THAN A PC A BUILTIN TELEPHONE ANSWERING MACHINE A FAX MODEM AND SIMPLIFIED SOFTWARE IN THE PAST MOST SOCALLED HOME PCS WERE PRIMARILY STRIPPEDDOWN BUSINESS PCS AT A STRIPPEDDOWN PRICE COMPAQ WILL TRY TO CONVINCE HOME USERS OF THE WONDERS OF ITS PRESARIO MACHINES PRICED FROM 1299 THROUGH A NATIONAL TELEVISION ADVERTISING CAMPAIGN AND A TOLLFREE TELEPHONE NUMBER OFFERING IDEAS ON WAYS TO ENJOY THE LIFESTYLE BENEFITS OF A HOME COMPUTER SPECIFICALLY COMPAQ AND OTHERS SAY IT IS THE SOFTWARE LOADED INTO THEIR NEW SYSTEMS THAT WILL ATTRACT HOME USERS THE PRESARIO MACHINES AS WELL AS NEARLY ALL OF THE OTHER NEW MODELS INCLUDE BUILTIN PERSONAL FINANCE PROGRAMS GAMES WORD PROCESSING PROGRAMS AND SOFTWARE THAT HOOKS USERS TO ONLINE BULLETIN BOARD SERVICES IN ADDITION THE NEW MODELS FROM IBM AND COMPAQ FEATURE AN ADDITIONAL LAYER OF SOFTWARE THAT SERVES AS A HANDHOLDER FOR NOVICE USERS SETTING UP THEIR FIRST SYSTEM CRITICS THOUGH STILL COMPLAIN THAT SIMPLY SLAPPING USERFRIENDLY SOFTWARE ONTO THE MACHINE DOESN'T NECESSARILY MAKE IT EASIER TO USE THEY SAY IBMCOMPATIBLE COMPUTERS REMAIN INTUITIVELY DIFFICULT TO UNRAVEL DESPITE THE EFFORTS OF VENDORS TO ELIMINATE SOME OF THE MYSTERY THEY SAY THE PROBLEMS COME THROUGH MOST CLEARLY WHEN PCS ARE COMPARED WITH TVS AND VCRS HOME ELECTRONICS DEVICES THAT COMPETE AGAINST PCS FOR CHUNKS OF THE HOUSEHOLD BUDGET THESE ARE STILL ESSENTIALLY BUSINESS MACHINES SAYS RICHARD A SHAFFER PRESIDENT OF TECHNOLOGIC PARTNERS A NEW YORK CONSULTING FIRM PEOPLE DON'T NEED COMPUTERS AT HOME ANY MORE THAN THEY NEED COPIERS OR POSTAGE METERS IF YOU GAVE MOST PEOPLE A COMPUTER AT HOME THEY WOULDN'T KNOW WHAT TO DO WITH IT IN ADDITION TO COMPAQ DELL COMPUTER CORP HAS VOWED TO FOCUS MORE OF ITS ATTENTION ON SOCALLED TECHNOPHOBE BUYERS AND AST RESEARCH INC WILL ANNOUNCE NEXT WEEK THAT IT IS SPRUCING UP ITS OWN HOME LINE THE ADVANTAGE IN SEPTEMBER INTERNATIONAL BUSINESS MACHINES CORP WILL UNVEIL 27 NEW MODELS ESSENTIALLY REPLACING ITS EXISTING PS/1 LINE IN HOPES OF WOOING MORE HOME BUSINESS THIS FLURRY OF ACTIVITY EXPERTS SAY COULD HAMMER COMPANIES LIKE PACKARDBELL ELECTRONICS INC AND APPLE COMPUTER INC HOME COMPUTER PIONEERS THAT WILL BE UNDER MORE PRESSURE THAN EVER TO DEFEND THEIR TRADITIONAL TURF INDEED COMPAQ'S NEW MACHINES CLOSELY RESEMBLE THE ENTRYLEVEL MACINTOSH WITH THEIR RECTANGULAR LOOK ONEPIECE DESIGN AND WARM AND FUZZY SOFTWARE IT'S A DIRECT SHOT AT THE HEART OF THE MACINTOSH SAYS MR SHAFFER THOUGH APPLE OFFICIALS DECLINED COMMENT ON THE NEW MACHINES THE CUPERTINO CALIF COMPANY HAS RECENTLY MOVED TO SPIFF UP ITS OWN LINE WITH THE ADDITION OF ITS PERFORMA MACHINES AND IN RECENT MONTHS THE COMPANY HAS AGGRESSIVELY PITCHED ITS COMPUTERS AS EDUCATION AND ENTERTAINMENT TOOLS BOTH AREAS VIEWED AS CRITICAL IF THE HOME MARKET IS TO EXPAND WHILE THE HOMEMARKET NEWCOMERS SAY THEY ARE DRAWN TO THE BUSINESS BY ITS HUGE POTENTIAL ABOUT 70 OF AMERICA'S 97 MILLION HOUSEHOLDS STILL DON'T HAVE PERSONAL COMPUTERS ANALYSTS SAY THE COMPANIES ACTUALLY HAVE LITTLE CHOICE CORPORATE DEMAND WHICH HAS ZOOMED IN THE PAST YEAR THANKS TO A COMPAQINITIATED PRICE WAR IS SAGGING AMID SIGNS OF A SATURATED MARKET AND BECAUSE MANY PC COMPANIES HAVE SHARPLY CUT THEIR PROFIT MARGINS TO KEEP UP WITH COMPETITION THEY SIMPLY CAN'T AFFORD A SLOWDOWN IN REVENUE PLUS THE HOME MARKET SO FAR THIS YEAR HAS BEEN HOT PC PENETRATION INTO THE HOME IN THE FIRST HALF JUMPED TO 31 FROM 266 A YEAR EARLIER THE BIGGEST ANNUAL INCREASE SINCE ANALYSTS BEGAN TRACKING THE MARKET NICHE LINK RESOURCES CORP A NEW YORK CONSULTING FIRM THAT WATCHES THE HOME MARKET PREDICTS THAT FIVE MILLION PCS VALUED AT ABOUT 59 BILLION WILL BE SHIPPED TO AMERICAN HOUSEHOLDS THIS YEAR UP FROM 45 MILLION UNITS AND 51 BILLION DURING 1992 BUT ANALYSTS NOTE THAT COMPANIES ARE STILL FACING CONSIDERABLE CONSUMER RESISTANCE ALTHOUGH THERE HAS BEEN PROGRESS IN THE PAST YEAR THE HOME MARKET STILL LAGS FAR BEHIND THE 58 AND 67 PC PENETRATION FOR WORKATHOME HOUSEHOLDS AND SMALL BUSINESSES RESPECTIVELY UNLIKE OTHER HOME ELECTRONICS GADGETS WHICH TEND TO HAVE A SINGLE OBVIOUS USE EXPERTS SAY THE BENEFITS OF A COMPUTER ARE HARDER TO NAIL DOWN AND THE COSTS TRICKIER TO JUSTIFY THE USEFULNESS OF A PC IS NOT READILY APPARENT TO MAINSTREAM AMERICA SAYS ANDY BOSE A LINK VICE PRESIDENT ALREADY FAILED STABS AT THE HOME MARKET ARE NUMEROUS IBM STUMBLED BADLY WITH ITS PCJR AND TANDY CORP WHICH PITCHED ITS MACHINES IN PART AS A WAY FOR HOUSEWIVES TO KEEP UP WITH THEIR RECIPES IN THE KITCHEN EARLIER THIS YEAR SOLD ITS COMPUTER BUSINESS TO AST EVEN EARLY VERSIONS OF THE PS/1 WERE DISAPPOINTMENTS HAVING BEEN STRIPPED OF MOST OF THEIR POWER YOU MAKE A BIG MISTAKE IF YOU THINK YOU'RE GOING TO FOOL PEOPLE SAYS JIM KENNAN CONSUMER BRANDS DIRECTOR FOR IBM PERSONAL COMPUTER CO COMPUTER VENDORS THOUGH NOW SAY THEY HAVE CRACKED THE CODE INSTEAD OF BRAGGING ABOUT THE TECHNOLOGICAL PROWESS OF THEIR NEW MACHINES PC MAKERS INSTEAD ARE FOCUSING ON THEIR SIMPLICITY THEIR EASIERTOUNDERSTAND DIRECTIONS AND 24HOUR HELP LINES IF YOU CAN READ AND YOU CAN CLICK A MOUSE YOU SHOULD BE ABLE TO FIGURE EVERYTHING OUT MR KENNAN SAYS TALK OF IDIOTPROOF PCS THOUGH ISN'T ALWAYS WELCOME IN THE ENGINEERINGDRIVEN PERSONAL COMPUTER BUSINESS SOME COMPANIES SUCH AS CLOSELY HELD GATEWAY 2000 INC AND IBM'S NEW AMBRA UNIT ARE INTENTIONALLY SHUNNING THE HOME MARKET TO FOCUS ON A HIPPER HIGHTECH CLIENTELE IN FACT GATEWAY'S PRESIDENT TED WAITT SAYS THE NEW COMPUTERS ARE NEARLY INSULTING WE'VE ALWAYS HAD A PHILOSOPHY THAT SAYS OUR CUSTOMERS ARE PRETTY SMART MR WAITT SAYS YOU DON'T HAVE TO BE CONDESCENDING TO THEM COMPAQ HAS ALREADY BEEN CRITICIZED FOR OFFERING OVERSIMPLIFIED MACHINES IN ITS FIRST BATCH OF PRESARIOS THE NEW PCS FOR EXAMPLE DON'T INCLUDE CDROM DRIVES EVEN THOUGH MOST OBSERVERS SAY IT IS MULTIMEDIA GAME AND EDUCATION SOFTWARE THAT WILL PROBABLY DRIVE THE GROWTH IN THE HOME MARKET COMPAQ'S MR BAUER IN RESPONSE SAYS CDROMS WILL BE INCLUDED IN LATER PRESARIO MODELS FURTHER HE SAYS A RECENT COMPAQ ALLIANCE WITH MICROSOFT CORP WILL PRODUCE EVEN MORE EASEOFUSE ADVANCES THAT MAY FIND THEIR WAY INTO THE REST OF COMPAQ'S PC LINE ANALYSTS SAY THE NEW MACHINES ALONG WITH COMPAQ'S FUTURE VERSIONS MAY FINALLY BEGIN TO BREAK DOWN PEOPLE'S LONG HELD RESISTANCE TO TECHNOLOGY COMBINE THAT WITH PRICES THAT ARE FINALLY BEGINNING TO KISS THE 1000 MARK AND THE HOME PC MARKET MAY FINALLY HAVE SOME REAL POTENTIAL FOR GROWTH IT'S GOING TO BE PEDAL TO THE METAL FROM NOW ON SAYS DENNIS COX DIRECTOR OF THE CONSUMER PRODUCTS GROUP AT AST THE UNTAPPED POTENTIAL HERE IS HUGE 9308260141 930826 WHO'S NEWS AM INTERNATIONAL INC AM INTERNATIONAL INC MOUNT PROSPECT ILL THOMAS D ROONEY 46 YEARS OLD FORMERLY CONTROLLER OF THIS GRAPHICS CONCERN WAS NAMED TO THE NEW POST OF CHIEF FINANCIAL OFFICER MR ROONEY ALSO RETAINS HIS POSITION AS A VICE PRESIDENT OF AM INTERNATIONAL 9308260140 930826 PRINCETON ELECTRONIC PRODUCTS PHOENIX PRINCETON ELECTRONIC PRODUCTS INC SAID IT BOUGHT A 50 WORKING INTEREST IN THE OIL AND GAS PROPERTIES OF POTATO CREEK THE COMPANY ALSO SAID IT REACHED AN AGREEMENT WITH POTATO CREEK TO JOINTLY PURCHASE AND DEVELOP ADDITIONAL PROPERTIES USING POLYMER TECHNOLOGY FINANCIAL TERMS WERE NOT DISCLOSED PRINCETON ELECTRONIC SAID THE POTATO CREEK PROPERTIES IN KANSAS CONSIST OF FOUR LEASES CONTAINING ABOUT 600 ACRES AND 30 EXISTING WELLS OF WHICH SEVEN OR EIGHT ARE PRODUCING THE REST WILL BE REWORKED USING POLYMER TECHNOLOGY 9308260139 930826 BROTHER UNIT RAISES PRICES SOMERSET NY THE INDUSTRIAL PRODUCTS UNIT OF BROTHER INTERNATIONAL CORP SAID IT WILL RAISE PRICES ON INDUSTRIAL SEWING MACHINES AND SEWINGMACHINE PARTS BECAUSE OF THE YEN'S APPRECIATION THE CHANGES WHICH BECOME EFFECTIVE IN OCTOBER WILL RAISE MACHINE PRICES 8 AND PART PRICES 10 THE COMPANY SAID BROTHER INTERNATIONAL CORP IS THE SALES AND MARKETING COMPANY FOR BROTHER INDUSTRIES LTD NAGOYA JAPAN 9308260137 930826 TRACOR COMPLETES ACQUISITION AUSTIN TEXAS TRACOR INC SAID IT COMPLETED ITS PREVIOUSLY ANNOUNCED ACQUISITION OF VITRO CORP A UNIT OF PENN CENTRAL CORP FOR 94 MILLION THE DEFENSE ELECTRONICS CONCERN SAID IT USED THE PROCEEDS OF ITS RECENTLY COMPLETED 105 MILLION DEBT OFFERING TO FINANCE THE TRANSACTION VITRO AN ENGINEERING AND TECHNICAL SERVICES COMPANY REPORTED SALES OF 414 MILLION IN 1992 TRACOR SAID 9308260136 930826 TECHNOLOGY NOVELL REPORTS LOSS FOR FISCAL 3RD PERIOD WRITEOFF IS CITED PROVO UTAH NOVELL INC SLOWED BY LACK OF NEW PRODUCT AS WELL AS WEAKNESS IN EUROPE SAID OPERATING PROFIT FOR THE THIRD FISCAL QUARTER WAS DOWN 6 FROM A YEAR AGO AND IT POSTED A LOSS AS PREVIOUSLY INDICATED INCLUDING A ONETIME WRITEOFF OF 320 MILLION OR 1 A SHARE RELATED TO ACQUISITIONS NOVELL POSTED A LOSS FOR THE QUARTER OF 2554 MILLION OR 80 CENTS A SHARE THE MAKER OF SOFTWARE FOR COMPUTER NETWORKS EARNED 66 MILLION OR 21 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 12 IN THE PERIOD TO 273 MILLION FROM 243 MILLION A YEAR AGO A MARKED SLOWDOWN FROM THE COMPANY'S RECENT QUARTERLY GROWTH IN REVENUE OF BETWEEN 25 AND 50 YEAR OVER YEAR NOVELL SAID OPERATING PROFIT WAS 62 MILLION IN THE PERIOD ENDED JULY 31 COMPARED WITH THE YEAREARLIER 66 MILLION THE RESULTS WERE IN LINE WITH EXPECTATIONS OF ANALYSTS NOVELL HAD PROVIDED AN INDICATION OF THE QUARTERLY PERFORMANCE A FEW WEEKS AGO THE RESULTS WERE RELEASED AFTER THE CLOSE OF FINANCIAL MARKETS YESTERDAY NOVELL'S STOCK CLOSED AT 2125 A SHARE UP 1375 OR 69 IN NATIONAL OVERTHECOUNTER TRADING ANALYSTS SAID NOVELL'S REVENUE SLUMPED IN THE QUARTER BECAUSE OF WEAKNESS IN ITS GERMAN MARKET AND BECAUSE OF A LACK OF NEW PRODUCTS THE COMPANY IS IN TRANSITION FOLLOWING ITS RECENTLYLAUNCHED NETWARE 40 LINE OF PRODUCTS ACCORDING TO DOUGLAS F WHITMAN MANAGING DIRECTOR OF MONTGOMERY SECURITIES THAT IS TAKING AWHILE TO ROLL OUT SEPARATELY NOVELL REKINDLED SPECULATION OVER A SUCCESSOR TO CHIEF EXECUTIVE OFFICER RAYMOND NOORDA 68 YEARS OLD BY NAMING TWO SENIOR EXECUTIVES TO JOIN HIM IN A NEW OFFICE OF THE PRESIDENT MARY M BURNSIDE CHIEF OPERATING OFFICER AND JAMES R TOLONEN CHIEF FINANCIAL OFFICER WILL SHARE THE OFFICE WITH MR NOORDA WHO HAS SAID HE WOULD SETTLE THE ISSUE OF HIS SUCCESSOR THIS YEAR DESPITE THE NEW OFFICE SEVERAL ANALYSTS SAID THEY STILL BELIEVED A SUCCESSOR WOULD BE CHOSEN FROM OUTSIDE THE COMPANY 9308260134 930826 WHO'S NEWS SOUTHWESTERN BELL CORP SOUTHWESTERN BELL CORP SAN ANTONIO THIS BABY BELL NAMED JOSEPH SELLERS 43 YEARS OLD CHIEF FINANCIAL OFFICER AND TREASURER OF ITS SOUTHWESTERN BELL YELLOW PAGES INC UNIT MR SELLERS WHO WAS PREVIOUSLY CONTROLLER OF THE UNIT SUCCEEDS JERRY HOWE 38 MR HOWE WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF SOUTHWESTERN BELL INTERNATIONAL HOLDINGS LTD IN LONDON A NEW POSITION 9308260133 930826 WHO'S NEWS SIZZLER INTERNATIONAL INC SIZZLER INTERNATIONAL INC LOS ANGELES CAROL A SCOTT ASSOCIATE DEAN OF ACADEMIC AFFAIRS AT THE UNIVERSITY OF CALIFORNIA LOS ANGELES WAS ELECTED A DIRECTOR OF THIS RESTAURANT OPERATOR DR SCOTT 42 YEARS OLD SUCCEEDS ROBERT MONTGOMERY WHO DID NOT STAND FOR REELECTION 9308260132 930826 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN THE EUROPEAN COMMUNITY COMMISSION EMPLOYING ITS TREATY POWERS IS DRAFTING LEGISLATION TO BREAK UP MONOPOLIES THAT HANDLE AIRPORT GROUND SERVICES SUCH AS REFUELING AND BAGGAGE HANDLING FOLLOWING COMPLAINTS BY SOME EUROPEAN AIRLINES AIRLINES CLAIM THE LACK OF COMPETITION INCREASES THEIR COSTS BY 30 TO 50 AND OFTEN RESULTS IN POORQUALITY SERVICE AIRPORTS IN FRANKFURT MILAN AND AROUND SPAIN WERE CITED IN THE COMPLAINTS THOUGH THE PRACTICE ISN'T LIMITED TO THOSE SITES SPAIN'S STATEOWNED CARRIER IBERIA AIRLINES YESTERDAY DISMISSED THE COMPLAINTS AGAINST ITS OWN MONOPOLY ON GROUND SERVICES IN ALL SPANISH AIRPORTS SAYING THE ACCUSATIONS WERE FALSE OR BASED ON INCIDENTS ALREADY REMEDIED SEPARATELY IN HUNGARY ABOUT 800 WORKERS AT THE AEROPLEX AIRCRAFT MAINTENANCE COMPANY WENT ON STRIKE HAMPERING SOME FLIGHTS BY STATEOWNED CARRIER MALEV THE CARRIER WHICH OWNS AEROPLEX WITH LOCKHEED CORP WAS BRINGING IN BRITISH WORKERS TO TRY TO MAINTAIN OPERATIONS POLAND'S GROSS DOMESTIC PRODUCT IS EXPECTED TO RISE FOR THE SECOND STRAIGHT YEAR PUTTING THE COUNTRY AT THE FOREFRONT OF ECONOMIC PERFORMANCE IN THE FORMER COMMUNIST BLOC FOR 1993 POLAND PROJECTED A 4 RISE IN GDP AND A 7 RISE IN INDUSTRIAL OUTPUT POLAND WAS THE ONLY EASTERN EUROPEAN COUNTRY TO SEE ITS ECONOMY EXPAND IN 1992 WITH GDP GROWING 2 THE TREND IS CONTINUING THIS YEAR WITH WORKER PRODUCTIVITY UP 11 THROUGH JULY INFLATION FOR THE YEAR IS PROJECTED AT 38 DOWN FROM 45 LAST YEAR UNEMPLOYMENT IS EXPECTED TO CLIMB TO 16 BY YEAREND RUSSIA'S PRESIDENT SIGNED AN ORDER CLEARING THE WAY FOR THE PRIVATIZATION OF THE STATEOWNED MOSCOW AUTO MAKER THAT MAKES MOSKVICH CARS FOREIGN AND DOMESTIC INVESTORS WILL BE ABLE TO BID FOR AS MUCH AS 60 OF THE STOCK IN THE COMPANY KNOWN OFFICIALLY AS THE AUTOMOBILE FACTORY NAMED FOR THE LENINIST KOMSOMOL THE COMPANY'S WORKERS AND MANAGERS WILL BE ABLE TO ACQUIRE 25 OF THE SHARES FREE AND AN ADDITIONAL 10 AT A STEEP DISCOUNT THEY ALSO CAN BID FOR SHARES AT THE PUBLIC AUCTION MOSKVICH CARS SELL IN THE WEST UNDER THE AZELKO NAMEPLATE INDIA WITHDREW LEGISLATION TO BAN THE USE OF RELIGION IN POLITICS AFTER IT FAILED TO DRAW ENOUGH SUPPORT IN PARLIAMENT THE BILL WOULD HAVE BARRED FROM ELECTION ANY GROUP PROMOTING RELIGIOUS DISHARMONY AND DISQUALIFIED CANDIDATES WHO CAMPAIGNED ON RELIGIOUS ISSUES OR USED RELIGIOUS SYMBOLS THE PACKAGE PART OF A CRACKDOWN ON FUNDAMENTALISM FOLLOWED THE DESTRUCTION OF AN ANCIENT MUSLIM MOSQUE BY A MOB OF HINDUS IN DECEMBER IT WAS SEEN AS A TOOL TO CONTROL THE HINDU NATIONALIST BHARATIYA JANATA PARTY THE MAIN OPPOSITION PARTY AN AGREEMENT BROKERED BY PHILIPPINE PRESIDENT FIDEL RAMOS'S OFFICE MOVED THE COUNTRY'S TWO WARRING STOCK EXCHANGES CLOSER TO UNIFICATION THOUGH MEMBERS OF THE MANILA AND MAKATI EXCHANGES AGREED IN MARCH TO MERGE OPERATIONS THROUGH A COMPUTER LINK THE PLAN WAS DELAYED BY A DISPUTE ABOUT WHERE THE UNIFIED PHILIPPINE STOCK EXCHANGE WOULD BE BASED UNDER THE PACT AYALA LAND INC WHOSE AYALA TRIANGLE SITE IS THE BASE OF THE MAKATI TRADING FLOOR ALLOWED TEKTITE TOWERS THE SUBURBAN HOME OF THE MANILA EXCHANGE TO HOUSE THE PSE'S ADMINISTRATIVE OFFICES AYALA TRIANGLE WILL KEEP THE CENTRAL DEPOSITORY AND CLEARING HOUSES OF THE PSE A 20YEAROLD GERMAN WAS CHARGED WITH INCITING RACISM WITH A TELEPHONE ANSWERING MACHINE MESSAGE ALLEGED TO HAVE SPREAD NAZI PROPAGANDA AND INFORMATION ABOUT RIGHTWING EXTREMIST ACTIVITIES AN UNFINISHED RUSSIAN NUCLEAR PLANT IN THE VOLGA RIVER TOWN OF NIZHNY NOVGOROD HAS BEEN TURNED INTO A WAREHOUSE AND BOTTLING FACTORY FOR MOLDOVAN WINES THE NUCLEAR PROJECT WAS CALLED OFF FOR ENVIRONMENTAL REASONS TWO YEARS AGO 9308260131 930826 D&B EXPANDS SERVICES IN MEXICO MEXICO CITY DUN & BRADSTREET CORP NEW YORK ANNOUNCED IT HAS QUADRUPLED ITS MARKETING BUSINESS AND CREDITINFORMATION SERVICES IN MEXICO THE EXPANDED VENTURE OF THE DUN & BRADSTREET INFORMATION SERVICES UNIT WILL NOW INCLUDE COMPUTERIZED INFORMATION ON ABOUT 300000 MEXICAN FIRMS SUCH INFORMATION IS NEEDED BY COMPANIES ENGAGED IN INTERNATIONAL TRADE AND INVESTORS AND PROVIDERS OF FINANCIAL SERVICES D&B SAID D&B A PROVIDER OF BUSINESS INFORMATION AND RELATED SERVICES HAS OPERATED IN MEXICO FOR NEARLY 100 YEARS THE COMPANY SAID 9308260130 930826 FINANCING BUSINESS INTEGRATED DEVICE TECHNOLOGY INC INTEGRATED DEVICE TECHNOLOGY INC SANTA CLARA CALIF SAID IT HAS FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL THREE MILLION COMMON SHARES WITH THE EXPECTED 49 MILLION IN PROCEEDS TO BE USED FOR CAPITAL EQUIPMENT EXPENDITURES AND GENERAL CORPORATE PURPOSES 9308260129 930826 ENTERPRISE SMALL FIRMS STRUGGLE WITH LATEST MANAGEMENT TRENDS DESIGNED TO EASE AND IMPROVE NEW TECHNIQUES CAN CONFOUND AND OVERWHELM BY GILBERT FUCHSBERG STAFF REPORTER OF THE WALL STREET JOURNAL REENGINEERING TOTAL QUALITY MANAGEMENT ISO 9000 BIG CORPORATIONS ARE LATCHING ONTO THESE MANAGEMENT STRATEGIES AS THE KEY TO STAYING COMPETITIVE SMALL BUSINESSES HOWEVER HAVE A DIFFERENT REACTION CONFUSION EAGER TO IMPROVE THEIR PERFORMANCE AND REDUCE WASTE SMALL COMPANIES PONDER WHETHER TO ADOPT BIGBUSINESS MANAGEMENT STRATEGIES THEY WONDER WHAT TO DO AND WHETHER IT WILL REALLY PAY OFF WE KEEP HEARING ABOUT THESE IMPORTANT SUBJECTS BUT I CAN'T SEEM TO FIND OUT WHAT THEY MEAN FOR THE NEXT QUARTER IN MY COMPANY SAYS GRIFF RESOR PRESIDENT OF MRS TECHNOLOGY INC CHELMSFORD MASS AN ELECTRONICS SUPPLIER WITH 11 MILLION IN ANNUAL SALES INDEED THE MERE NAMES OF SOME OF THE NEW NOTIONS ARE MINDBOGGLING BUSINESSPROCESS REDESIGN JUSTINTIME MANUFACTURING BENCHMARKING THE VIRTUAL CORPORATION RELATIONSHIP MARKETING SOMETHING CALLED ISO 9000 IS CONSIDERED ESSENTIAL FOR DOING BUSINESS IN EUROPE AND GET READY FOR THIS ONE WHICH IS NOW TOUTED BY ONE MANAGEMENTCONSULTING FIRM TANDEM REALIGNMENT MANY SMALLBUSINESS OWNERS ARE TOO BUSY JUST GETTING THROUGH THE DAY'S CRISES TO STUDY THE PROS AND CONS OF ALL THE NEW TECHNIQUES WHICH ARE AIMED AT CUTTING COSTS AND IMPROVING PRODUCTIVITY SO THEY DO WHAT ENTREPRENEURS HAVE ALWAYS DONE TO SOLVE PROBLEMS IMPROVISE TO STAY CURRENT WITHOUT BEING OVERWHELMED THEY DISREGARD LABELS AND SCRAP TEXTBOOK MODELS IN FAVOR OF SELECTING A HANDFUL OF IDEAS THEY THINK WILL WORK FOR THEM MR RESOR FOR ONE SAYS HIS 80PERSON COMPANY WHICH SUPPLIES SPECIALIZED EQUIPMENT TO COMPUTER MAKERS IS VERY ATTUNED TO QUALITY BECAUSE MY CUSTOMER BASE DEMANDS IT HIS PRIMARY COMPETITORS JAPANESE CAMERA MAKERS NIKON CORP AND CANON INC KNOW HOW TO DELIVER SO MRS TECHNOLOGY WHICH WENT PUBLIC LAST MONTH ADDED SEVERAL QUALITYCONTROL AND RELIABILITY TESTS TO ITS EQUIPMENT WITHOUT REGARD TO WHETHER WHAT WE'RE DOING IS STATISTICALPROCESS CONTROL OR TOTAL QUALITY MANAGEMENT OR REENGINEERING OR ISO 9000 MR RESOR SAYS I'D LIKE TO PICK AND CHOOSE ELEMENTS OF THE PROGRAM THAT MEET MY OBJECTIVES RATHER THAN PICK A PROGRAM THAT HAS A NICE WELLKNOWN NAME AND SPEND A LOT OF MONEY THAT I DON'T NEED TO SPEND HE ADDS WHAT'S MORE MR RESOR FINDS THAT SOME OF THESE GREATSOUNDING CONCEPTS DON'T NECESSARILY APPLY TO HIM FOR INSTANCE HE HASN'T FOUND A STATISTICALPROCESSCONTROL METHOD THAT WORKS FOR HIS LOWVOLUME PRODUCTION OF A FEW 2 MILLION MACHINES EACH YEAR MY NUMBERS AREN'T LARGE ENOUGH TO ANALYZE IN THAT WAY HE SAYS IT'S NOT LIKE I'M BUILDING LIGHT BULBS OR COMPUTER CHIPS INDUSTRIAL DEVICES INC HACKENSACK NJ TRIES TO KEEP ABREAST OF ALL THE LATEST TRENDS WITHOUT CHAINING ITS FORTUNES TO ANY ONE OF THEM THE CLOSELY HELD COMPANY WITH 375 EMPLOYEES MAKES INDICATOR LIGHTS FOR DASHBOARDS AND OTHER USES BECAUSE IT WAS REQUIRED TO ADOPT QUALITYCONTROL TECHNIQUES EIGHT YEARS AGO BY FORD MOTOR CO A MAJOR CUSTOMER INDUSTRIAL DEVICES IS PROBABLY DOING TOTAL QUALITY MANAGEMENT NOW BUT WE DON'T USE THAT TERM HERE SAYS BERNIE SCHNOLL PRESIDENT MR SCHNOLL SAYS HE SPENDS A TOTAL OF THREE TO FOUR WEEKS EACH YEAR ATTENDING SEMINARS AND READS AT LEAST ONE BUSINESS BOOK EACH MONTH TO KEEP ABREAST DURING AN INTERVIEW HE CITES A HANDFUL OF MANAGEMENT GURUS BUT HE SAYS I DON'T LIKE TO FEEL PRESSURED WITH THESE THINGS INSTEAD I TRY TO PICK AMONG THE IDEAS WHILE NEVER LOSING SIGHT OF WHAT I'M TRYING TO DO FOR INSTANCE HE IS STUDYING WAYS TO SPEED UP DESIGN AND PRODUCTION NOT BECAUSE OF A MANAGEMENT FAD BUT BECAUSE MY CUSTOMERS NEED IT AND IF I CAN'T THEN I'M DEAD TO BE SURE NOT EVERY SMALL BUSINESS IS ENAMORED OF THE NEW MANAGEMENT TRENDS SOME SMALL COMPANIES ADOPTED TOTALQUALITY PRINCIPLES ONLY AFTER BEING PRESSURED BY BIG CUSTOMERS MANY COMPANIES BIG AND SMALL HAVE GROWN DISILLUSIONED WITH THE MANAGEMENT TECHNIQUES THEY'VE TRIED SMALL COMPANIES THAT DO WANT TO EXPERIMENT WITH THE NEW TECHNIQUES HAVE A SPECIAL PROBLEM WHILE LARGE COMPANIES CAN GENERALLY AFFORD TO HIRE CONSULTANTS AND STAFF SPECIALISTS TO HELP THEM MOST SMALLER CONCERNS CANNOT FOR A SMALLER COMPANY THERE'S MUCH MORE FIGURING OUT ON YOUR OWN WHICH MEANS A BIGGER CHALLENGE FOR MANAGEMENT SAYS JOHN S ROSE A PRINCIPAL IN NEW YORK WITH CONSULTANTS MCKINSEY & CO THE CHALLENGE IS PARTICULARLY TOUGH BECAUSE MANY OF THE NEW TECHNIQUES TAKE A GREAT DEAL OF TIME TO STUDY AND IMPLEMENT IF YOU WERE A SMALL COMPANY AND TRIED TO KEEP UP YOU'D BE JERKED AROUND PRETTY SEVERELY SAYS CRAIG A WALTER A SENIOR VICE PRESIDENT WITH THE AMERICAN ELECTRONICS ASSOCIATION A SANTA CLARA CALIF TRADE GROUP OF 3000 COMPANIES MOST OF WHICH EMPLOY FEWER THAN 250 A LOT OF SMALL COMPANIES ARE IN A STATE OF FIBRILLATION THE VERY COMPLEXITY OF ALL THE NEW MANAGEMENT STRATEGIES HAS CREATED A BUSINESS NICHE OF ITS OWN SHOPFOCUS INC A CLACKAMAS ORE TRAINING COMPANY HAS DESIGNED A 295 SERIES OF BOOKS HANDOUTS AND VIDEOTAPES TO TEACH TOTAL QUALITY MANAGEMENT IN ACHIEVABLE 45MINUTE BLOCKS TO SMALL BUSINESSES THAT CAN'T AFFORD CONSULTANTS OR THE PRODUCTION INTERRUPTIONS THAT TRAINING TYPICALLY REQUIRES THE COMPANY SAYS TRADE ASSOCIATIONS ARE HELPING TOO MR WALTER OF THE AMERICAN ELECTRONICS ASSOCIATION IS ON LOAN TO THE GROUP FROM HIS POST AS DIRECTOR OF QUALITY AT HEWLETTPACKARD CO TO HELP THE AEA'S MEMBERS GRAPPLE WITH BIGMANAGEMENT ISSUES AMONG OTHER EFFORTS MR WALTER DEVELOPED A SERIES OF PUBLICATIONS TO TEACH COMPANIES THE DIFFERENCES AMONG TOTAL QUALITY MANAGEMENT ISO 9000 AND OTHER HOT MANAGEMENT TRENDS A LOT OF SMALL COMPANIES GO INTO A LOCKUP MODE THEY ARE SO CONFUSED BY ALL THE VARIATIONS OUT THERE THAT THEY DON'T DO ANYTHING MR WALTER SAYS WHAT WE'RE TRYING TO DO IS HELP THEM MOVE FROM CONFUSION TO AWARENESS TO IMPLEMENTATION HERE ARE SOME OF THE MANAGEMENT PROCESSES GAINING PROMINENCE IN RECENT YEARS MULTIPLE TEAMS OF EMPLOYEES DEVELOP IDEAS FOR INCREMENTAL CHANGES COMPANYWIDE TO REDUCE WASTE AND INCREASE CUSTOMER SATISFACTION RADICAL REDESIGN OF ALL OR PART OF A COMPANY TO IMPROVE PRODUCTIVITY AND FINANCIAL PERFORMANCE SERIES OF QUALITYCONTROL GUIDELINES FOR SUPPLIERS DOING BUSINESS IN THE EUROPEAN COMMUNITY STUDYING SELECTING AND EMULATING THE BEST MANAGEMENT AND WORK PRACTICES OF OTHER COMPANIES 9308260128 930826 RENAULTVOLVO MERGER TALKS PARIS ALTHOUGH NEGOTIATIONS OVER THE MERGER OF FRANCE'S RENAULT SA AND AB VOLVO OF SWEDEN HAVEN'T BEEN CONCLUDED THE FRENCH INDUSTRY MINISTRY SAID SIGNIFICANT PROGRESS HAS BEEN MADE THE MINISTRY MADE THE COMMENT WHEN ASKED ABOUT A REPORT THAT THE MERGER PROBABLY WILL BE ANNOUNCED BY SEPT 7 THE OPENING DATE OF THE FRANKFURT AUTO SHOW THE MINISTRY WOULDN'T SPECIFY WHEN IT EXPECTED A MERGER ANNOUNCEMENT 9308260127 930826 TECHNOLOGY APPLIED COMPUTER TECHNOLOGY MADISON WIS APPLIED COMPUTER TECHNOLOGY FOR PATIENT CARE INC SAID MERIDIA HEALTH SYSTEM OF OHIO WILL USE APPLIED COMPUTER'S ARGUS WINDOWS BEDSIDE CLINICAL INFORMATION SOFTWARE AT ITS FOUR HOSPITALS THE SOFTWARE IS CURRENTLY BEING INSTALLED AT MERIDIA HURON HOSPITAL THE COMPANY SAID APPLIED COMPUTER TECHNOLOGY IS TO BE ACQUIRED BY MICRO HEALTHSYSTEMS INC LATE THIS MONTH 9308260126 930826 ART ANTIQUE DEALERS LOOK TOWARD ASIA BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL ALWAYS ON THE GLOBAL PROWL FOR WEALTHY PEOPLE WITH CASH THE ART WORLD IS SETTING ITS SIGHTS ON ASIA ART AND ANTIQUES DEALERS WHOSE SUCCESS TURNS ON TRACKING AND TARGETING THE NOVICE RICH ARE BETTING THE ECONOMIC BOOM TAKING PLACE IN CHINA AND SEVERAL NEIGHBORING COUNTRIES WILL TRANSLATE INTO THE NEXT ARTMARKET BOOM THEY PREDICT IT WILL BE A BOOM OF UNPRECEDENTED STRENGTH AND LONGEVITY BOOSTING PRICES WORLDWIDE FOR SPECIFIC ARTS AND COLLECTIBLES FAVORED IN ASIAN CULTURES AND EVENTUALLY PROMPTING ASIANS TO BECOME CROSSOVER COLLECTORS OF WESTERN ART IN THE COMING YEARS ASIANS WILL MAKE UP A MUCH BIGGER PERCENTAGE OF THE WORLD ART MARKET THAN THEY DO NOW SAYS JULIAN THOMPSON A DEPUTY CHAIRMAN OF SOTHEBY'S HOLDINGS INC TO MEET THE DEMAND THE ART AUCTIONEER HAS EXPANDED ITS OFFICES IN HONG KONG SINGAPORE AND SOUTH KOREA STARTED AUCTIONS LAST YEAR IN TAIWAN AND IS CONSIDERING A BEIJING SALESROOM ART DEALERS USED TO HANG OUT IN COLOGNE AND PARIS NOW THEY'RE HANGING OUT IN SEOUL SAYS THOMAS PELHAM DIRECTOR OF THE JUDSON WAREHOUSE A STORAGE CENTER AND EXPORTIMPORT SHIPPER IN NEW YORK SHIPMENTS FROM ART DEALERS TO HONG KONG KOREA AND TAIPEI MOSTLY BLUECHIP TOPQUALITY PAINTINGS ARE UP 150 COMPARED WITH TWO TO THREE YEARS AGO HE SAYS IT'S IMPORTANT FOR ART DEALERS AND INTERNATIONAL AUCTION HOUSES TO BE EARLY SPOTTING THE NEXT CENTERS OF WEALTH UNLIKE OTHER LUXURYGOODS MERCHANTS SUCH AS FURRIERS OR AUTOMOBILE SALESMEN ART DEALERS NEED MONTHS OF LEAD TIME TO GATHER INVENTORY THAT CATERS TO LOCAL TASTES TO SET UP OFFICES TO TRAIN PERSONNEL IN LOCAL CUSTOMS AND TO GET ACCESS TO THE SOCIAL CIRCLES THAT WILL PRODUCE ITS LEADING CLIENTELE PEOPLE WHO WOULD DROP MILLIONS OF DOLLARS ON A MING WINE JAR STAFFING IS PARTICULARLY TIMECONSUMING BECAUSE AUCTION HOUSES LIKE TO INSTALL MEMBERS OF SOCIETY PREFERABLY WITH TITLE AS BUSINESSGETTERS SOTHEBY'S DIRECTORS INCLUDE A VISCOUNT AN EARL AN AMBASSADOR AND AN ARCHDUKE CHRISTIE'S INTERNATIONAL PLC IS DOTTED WITH LORDS AND SIRS ITS HONG KONG DEPARTMENT IS RUN BY A BARONESS MUCH OF THE ART INDUSTRY'S EAGERNESS TO LOOK TO THE HORIZON IS BORN OF DESPERATION THE ART MARKET IS JUST EMERGING FROM A BRUTAL THREEYEAR RECESSION CAUSED IN PART BY THE SWEEPING PULLOUT OF JAPANESE BUYERS AS THEIR ECONOMY WEAKENED AND GOVERNMENT AUTHORITIES BEGAN INVESTIGATING ZAITECH OR FINANCIAL ENGINEERING THE WIDESPREAD CORPORATE USE OF ART AS A TAX DODGE SO FOR THE CASHSTRAPPED ART WORLD GLOBAL VILLAGE HAS BECOME MORE THAN A SLOGAN IT'S A SURVIVAL STRATEGY THE ART MARKET GOT ITS WAKEUP CALL IN OCTOBER 1991 AT THE ABSOLUTE LOW POINT OF THE RECESSION SOTHEBY'S HELD WHAT WAS SUPPOSED TO BE A FAIRLY ROUTINE AUCTION OF KOREAN ART IN NEW YORK EXPECTED TO RAISE ABOUT 700000 IT INSTEAD BROUGHT FOUR TIMES THAT THE SALE'S HIGHLIGHT A 14TH CENTURY BUDDHIST PAINTING SOLD FOR 10 TIMES WHAT THE AUCTION HOUSE HAD FORESEEN BREAKING 18 MILLION THOSE PRICES ARE POCKET CHANGE COMPARED WITH WHAT 19TH CENTURY IMPRESSIONIST PAINTINGS USUALLY FETCH BUT THE BOOM IS IN ITS INFANCY AND ROBUST SALES OF KOREAN ART SINCE HAVE SHOWN THE SALE WASN'T A FLUKE ONE ESTABLISHED ARTMARKET TRUTH IS THAT THE RICHEST COUNTRY OF THE MOMENT SETS THE TASTE AND PRIORITIES IN THE MARKET WEALTHY COLLECTORS ALMOST ALWAYS BEGIN BY BUYING THEIR OWN COUNTRY'S ART HENCE RISING PRICES FOR CHINESE PORCELAIN PARTICULARLY FROM THE MING DYNASTY 14TH TO 17TH CENTURY KOREAN PAINTINGS AND SCULPTURE AND SOME THAI AND VIETNAMESE SCULPTURES FAMED FOR THEIR SIZE AND DETAIL MOREOVER EMERGING COUNTRIES ALWAYS LIKE TO BUY GOLD COINAGE SAYS CHRISTOPHER DAVIDGE CHIEF EXECUTIVE OFFICER OF CHRISTIE'S AND JADE IS GOING TO GO THROUGH THE ROOF BUT PERHAPS MOST OF ALL AUCTION HOUSES HAVE PINNED HIGH HOPES ON JEWELRY PRIZED IN ASIAN CULTURES AS THE INTERNATIONAL CURRENCY OF THE 21ST CENTURY SOME DEALERS EVEN PEG NAME JEWELS FAMOUS EITHER BECAUSE ROYALS ONCE WORE THEM OR BECAUSE OF THE HOUSES SUCH AS CARTIER THAT MADE THEM AS THE DECADE'S FASTESTGROWING COLLECTIBLE CERTAINLY THERE'S MONEY TO BE SPENT IN ASIA IN THE PAST FIVE YEARS THE FOUR LITTLE DRAGONS HONG KONG TAIWAN KOREA AND SINGAPORE HAVE ALL GROWN WEALTHY RACKING UP DOUBLEDIGIT ANNUAL GROWTH IN GROSS NATIONAL PRODUCT SAYS VINCENT CHAN SENIOR ECONOMIST OF PEREGRINE BROKERAGE INC OF HONG KONG KOREA NO LONGER MAKES SHOES NO LONGER MAKES CLOTHES IT MAKES STEEL WHAT'S MORE MERRILL LYNCH & CO ESTIMATES THAT THE AVERAGE SAVINGS RATE AMONG CHINESE AND SINGAPOREANS IS A WHOPPING 40 OF INCOME AT THE SAME TIME RAPID INFLATION IN SOME ASIAN NATIONS IS SEEN BOOSTING DEMAND FOR TANGIBLE ASSETS IN EUROPE IN ROUGHLY THE PAST 18 MONTHS ASIAN BUYERS HAVE BECOME A FORCE TO BE RECKONED WITH ART DEALERS SAY ANNA HOUGHTON MANAGER OF THE INTERNATIONAL PORCELAIN AND CERAMICS FAIR HELD IN LONDON EVERY YEAR SAID ASIAN BUYING ALMOST NONEXISTENT TWO YEARS AGO WAS HUGE IN 1993 AT THE GROSVENOR HOUSE FAIR IN LONDON THE ART AND ANTIQUE TRADE'S PREEMINENT ANNUAL EXPOSITION THE FIRST SALE THIS YEAR WAS AT THE BOOTH OF FIRSTTIME EXHIBITOR GRACE WU BRUCE FROM HONG KONG AN ASIAN BUYER WHO WISHED TO REMAIN ANONYMOUS PAID ABOUT 225000 FOR A HUANGHUALI A FOLDING CHAIR FROM THE MING DYNASTY BUT ULTIMATELY IT MAY NOT BE AS EASY TO EXPORT WESTERN WAYS AS IT IS WESTERN PAINTINGS THE BIG PUSH TO ASIA HAS BEEN HAMPERED BY SNAGS AND CULTURAL DIFFERENCES WHEN CHRISTIE'S WANTED TO GET THE CHINESE CONTEMPORARY MARKET GOING IT TOOK THE EXTREMELY RARE STEP OF COMMISSIONING ARTISTS TO PAINT WORKS SPECIFICALLY FOR THE SALE WHICH INFURIATED ARTDEALER MIDDLEMEN THERE IS ALSO A RELUCTANCE TO BID PUBLICLY AT AUCTION IN SOME ASIAN CULTURES IN AN ATTEMPT TO MAKE POTENTIAL BUYERS MORE COMFORTABLE SOTHEBY'S HAS HELD DRYRUN PARTIES IN SINGAPORE CLIENTS WHO COME FOR DRINKS AND HORS D'OEUVRES LISTEN TO AN AUCTION BEING CONDUCTED SIMULTANEOUSLY IN ANOTHER CITY IF THEY'RE TEMPTED TO BID THEY DO SO QUIETLY BY PHONE THE ART WORLD'S SUCCESS IN ASIA MAY HINGE ON CHANGING THE WESTERN MINDSET CHRISTIE'S MR DAVIDGE SAID HE WAS RECENTLY CORRECTED BY AN ASIAN COLLECTOR WHEN HE USED THE TERM FAR EAST THE COLLECTOR ASKED FAR FROM WHERE 9308260125 930826 STOP & SHOP SELLS BRADLEES STAKE BRAINTREE MASS STOP & SHOP COS SAID IT SOLD ITS HOLDING IN BRADLEES INC IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE SUPERMARKET CHAIN SAID IT SOLD 610000 SHARES ON AUG 24 AT A NET PRICE OF ABOUT 15375 A SHARE BRADLEES A DISCOUNT DEPARTMENT STORE CHAIN WAS SPUN OFF FROM STOP & SHOP LAST YEAR 9308260123 930826 LEISURE & ARTS TV ARNOLDS ON STREISAND AND REDFORD MORE MISS MARPLE BY DOROTHY RABINOWITZ TOM AND ROSEANNE ARNOLD PLAY HOST HERE AND PROVIDE COMMENTARY ON THE DELECTABLE 1973 FILM THAT PAIRED BARBRA STREISAND WITH ROBERT REDFORD AS A COUPLE MISMATCHED POLITICALLY AND IN MOST OTHER WAYS THE ARNOLDS WHO SEEM WELL MATCHED PROVIDE DEEPLY EARNEST DEEPLY EMPTY OBSERVATIONS THAT RUN TO SUBJECTS SUCH AS MALES IN POWER WOMEN WITH OPINIONS AND OTHER GREAT ISSUES OF OUR DAY THEIR COMMENTARIES ARE MERCIFULLY BRIEF ON THE OTHER HAND AND UNLIKELY TO DIM THIS FILM'S LUSTER A RECOVERING ALCOHOLIC STRUGGLES TO STAY SOBER AGAINST HEAVY ODDS THIS THEME MAY NOT SEEM LIKELY MATERIAL FOR SITUATION COMEDY BUT MR LARROQUETTE'S MORDANT CHARM AS A NEW CONVERT TO ALCOHOLICS ANONYMOUS AND NIGHT MANAGER OF A ST LOUIS BUS STATION MANAGES AT LEAST ON THE EVIDENCE OF THE PILOT EPISODE TO MAKE IT WORK THE SHOW'S ASSORTMENT OF FLAT IF NOISY SECONDARY CHARACTERS PROCESSED AND GROUND OUT STRICTLY ACCORDING TO THE REIGNING FORMULA FOR URBAN COMEDY FIGURES WON'T OF COURSE MAKE THAT WORK ANY EASIER IN THIS NEW MARPLE SAGA STARRING JOAN HICKSON THE ILLUSTRIOUS VILLAGE SLEUTH SETS ABOUT SOLVING THE MURDER OF A LOCAL CHATTERBOX WHILE DELVING GENERALLY INTO THE MYSTERIES SURROUNDING THE AFFAIRS OF A GREAT AND FAMOUS ACTRESS IF THERE WERE NOTHING ELSE TO RECOMMEND IT THE FILM WOULD BE WORTH SEEING FOR THE PRESENCE OF CLAIRE BLOOM IN THE ROLE OF AN AGING ACTRESS COME HOME TO ENGLAND TO DWELL IN MARBLE HALLS THERE IS IN FACT A GOOD DEAL TO RECOMMEND IN THIS MOVIE WHICH MAKES UP IN DETAIL AS USUAL WHAT IT LACKS IN SUSPENSE ONE DETAIL THE SCRIPT BY TR BOWEN COULD HAVE DONE WITHOUT IS THE EXTRAORDINARILY IDIOTIC CARICATURE YET ANOTHER OF THE HOLLYWOOD PRODUCER ALL THAT DELICATE NUANCE FOR WHICH BRITISH MYSTERY WRITING IS RENOWNED DOES SEEM TO FLY OUT THE WINDOW WHEN IT COMES TO DEALING WITH SUCH SUBJECTS THIS SHORT FILM DOCUMENTS THE LIVES WORKS AND TRIBULATIONS OF SENIORS AT A VARIETY OF HIGH SCHOOLS TRUE VARIETY ISN'T PRECISELY THE WORD FOR THIS WORK GIVEN THE SCANT APPEARANCE HERE OF SENIORS NOT BURDENED BY SOCIETAL ILLS OF ONE KIND AND ANOTHER A COUPLE OF THEM DO HOWEVER MAKE FOR SOME FAIRLY DRAMATIC PORTRAITS INCLUDING THE STUDENT WHOSE PARENTS DECIDED LONG AGO THAT THE CHILDREN WOULD BE BETTER OFF TAUGHT AT HOME THESE PARENTAL FEARS ARE BORNE OUT WITH GRIM ELOQUENCE BY MUCH OF THE REST OF THIS FILM'S ADORING PICTURE OF THE ACTIVITIES PROJECTS AND ESTEEMBUILDING THAT NOW PASSES FOR LEARNING IN THE SCHOOLS AT SOUHEGEN HIGH IN AMHERST NH FOR INSTANCE A STUDENT CAN COUNT ON NO TESTS BUT A LOT OF EMOTIONAL SUPPORT THIS IS A PLACE WHERE THE REPORTER HAPPILY ANNOUNCES FEELINGS ARE MODELED IN CLAY AND WHERE IT'S ALSO CLEAR NO ONE IS REQUIRED TO READ A BOOK THE STUDENTS COULD OF COURSE WATCH TELEVISION OR AT LEAST THIS PROGRAM ON THE INFLUENCE OF CERTAIN LITERARY CREATIONS DONALD SUTHERLAND NARRATES THIS DEFTLY INSTRUCTIVE AND ENTERTAINING OVERVIEW OF THREE LITERARY MASTERPIECES THEIR HISTORICAL ORIGINS AND THEIR ENDURING MYTHIC POWER THE FIRST EPISODE ON THE LEGEND OF KING ARTHUR FEATURES SCHOLAR GEOFFREY ASHE AND SERVES UP A CONCISE ILLUSTRATED HISTORY OF THE ARTHURIAN TALES ANOTHER SEGMENT ON DARWIN AND ORIGIN OF SPECIES STARS HARVARD HISTORIAN JAMES MOORE THE HOUR ON MARY SHELLEY'S FRANKENSTEIN INTRODUCES AN ASSORTMENT OF EXPERTS INCLUDING ONE WHO TELLS WITH A CERTAIN PANACHE OF THE OPENINGDAY HYPE SURROUNDING THE 1931 FRANKENSTEIN FILM THAT WOULD BECOME THE GRANDFATHER OF THEM ALL THE BORIS KARLOFF VERSION ALL TOLD THESE ARE THREE HOURS THAT PROVE THE THE LEARNING CHANNEL WORTHY OF ITS NAME 9308260122 930826 INDUSTRY FOCUS CABLE COMPANIES FACE A DEBTSTREWN SUPERHIGHWAY SECTOR REQUIRES 20 BILLION TO 43 BILLION TO UPGRADE ITS INFRASTRUCTURE BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL JUST A DECADE AGO THE NASCENT CABLE TELEVISION INDUSTRY WAS POPULATED BY ENTREPRENEURS LIKE JOHN RIGAS WHO PILED ON DEBT AS HE RACED TO STRING WIRE BUY OUT COMPETITORS AND ESTABLISH HIS ADELPHIA COMMUNICATIONS CORP AS A MAJOR OPERATOR NOW HAVING CROSSED THE FINISH LINE AT THE END OF THE MARATHON MR RIGAS IS FINDING THAT HE'LL HAVE TO REPEAT MUCH OF HIS FEAT IF HE WANTS A PIECE OF WHAT PROMISES TO BE A GIGANTIC INTERACTIVE MULTIMEDIA SUPERHIGHWAY THE CABLE INDUSTRY WILL NEED 20 BILLION TO 43 BILLION TO UPGRADE ITS INFRASTRUCTURE FOR FUTURISTIC USES EXPERTS SAY THE PROBLEM MOST CABLE COMPANIES' DEBT RATINGS INCLUDING ADELPHIA'S LANGUISH IN JUNKBOND TERRITORY WHILE THEIR RIVALS THE PHONE COMPANIES HAVE EASY ACCESS TO VAST POOLS OF INVESTMENTGRADE MONEY THE PHONE COMPANIES GOT ENCOURAGEMENT TO ENTER THE VIDEO PROGRAMMING BUSINESS IN A FEDERAL COURT RULING THIS WEEK THAT DECLARES UNCONSTITUTIONAL A PROVISION IN A 1984 LAW THAT PREVENTS THEM FROM PROGRAMMING IN THEIR SERVICE AREAS SELL SOME SHARES NOT SO EASY CABLE REREGULATION TAKES EFFECT WEDNESDAY AND ANTICIPATED RATE ROLLBACKS HAVE PUMMELED THE STOCKS OF MANY CABLE COMPANIES THE BIG ISSUE IN FRONT OF THE CHIEF FINANCIAL OFFICERS OF MOST MAJOR CABLE COMPANIES IS HOW DO WE GET THE FINANCING IN PLACE TO PARTICIPATE IN THE RACE SAYS BRIAN DEEVY PRESIDENT OF DANIELS & ASSOCIATES A DENVER INVESTMENT BANKING FIRM SPECIALIZING IN THE CABLE INDUSTRY JOHN WALLER CHAIRMAN OF WALLER CAPITAL CORP ADDS IT'S NOW ALMOST 100 A FINANCIAL RACE AND THESE CABLE COMPANIES CAN'T STAND STILL THEY'VE GOT TO SPEND MONEY OR SOMEONE ELSE WILL MOVE INTO THEIR MARKET A PHONE COMPANY OR SOMEBODY THE RACE HAS SENT CABLE SYSTEMS SCURRYING INTO TALKS WITH THE PHONE COMPANIES BOTH FOR CAPITAL AND FOR KNOWHOW ABOUT SWITCHING DEVICES AND SERVICES LIKE TRANSACTIONAL BILLING SUCH KNOWLEDGE WILL BE CRUCIAL TO THOSE RUNNING FUTURISTIC NETWORKS OFFERING MOVIES ON DEMAND INTERACTIVE GAMES HOME SHOPPING AND TELEPHONE SERVICES TWO CABLE COMPANIES HAVE ANNOUNCED DEALS IN MAY TIME WARNER INC SAID U S WEST WOULD PAY 25 BILLION FOR 255 OWNERSHIP OF ITS ENTERTAINMENT DIVISION THE MONEY WILL HELP FINANCE A THREE TO FIVEYEAR 5 BILLION CAPITALSPENDING PROGRAM FOR TIME WARNER'S CABLE SYSTEMS CLOSELY HELD HAUSER COMMUNICATIONS INC WENT EVEN FURTHER IT AGREED TO SELL TWO SUBURBAN WASHINGTON CABLE SYSTEMS TO SOUTHWESTERN BELL CORP BUT MANY CABLE OPERATORS AREN'T EAGER TO SHARE THEIR CROWN JEWELS WITH ARCHRIVALS THEY ARE WELL AWARE THAT THE MORE MONEY YOU NEED TO BRING IN FROM AN OUTSIDE PARTNER THE LESS CONTROL YOU HAVE MR DEEVY THE INVESTMENT BANKER SAYS SUCCESSFUL ALLIANCES ARE DIFFICULT TO NEGOTIATE AND OPERATE AMERICAN TELEPHONE & TELEGRAPH CO SAID AS MUCH EARLIER THIS MONTH WHEN IT ANNOUNCED IT WOULD BUY MCCAW CELLULAR COMMUNICATIONS CO OUTRIGHT THE DECISION CAME AFTER NINE MONTHS OF DEBATE ABOUT THE STRUCTURE OF A JOINT VENTURE SOME CABLE COMPANIES ARE TRYING TO SOLVE THE FUNDING PROBLEM BY BRINGING IN INVESTORS THAT AREN'T RIVALS LAST YEAR CONTINENTAL CABLEVISION BOSTON PRIVATELY PLACED 400 MILLION IN PREFERRED STOCK AND 155 MILLION IN COMMON STOCK MUCH OF IT TO INVESTMENT PARTNERSHIPS AFFILIATED WITH LAZARD FRERES & CO OTHER CABLE COMPANIES ARE BRACING FOR HEAVIER DEBT LOADS AMONG THOSE IS MR RIGAS'S ADELPHIA BASED IN COUDERSPORT PA WITH 830000 SUBSCRIBERS AND 3022 MILLION IN ANNUAL REVENUE THERE ARE DIFFERENT CULTURES IN CABLE AND TELEPHONE SAYS TIMOTHY RIGAS MR RIGAS'S SON AND THE COMPANY'S CHIEF FINANCIAL OFFICER OF HIS LACK OF ENTHUSIASM FOR AN ALLIANCE WITH A PHONE COMPANY WHO CONTROLS THE JOINT VENTURE I DON'T THINK ANYONE'S PROVEN THAT TELEPHONE OR CABLE IS SO DIFFICULT THAT ONE CAN'T LEARN THE OTHER'S BUSINESS ADELPHIA SPENT 500 MILLION OVER THE PAST DECADE TO LAY COAXIAL CABLE BENEATH STREETS STRING IT OVERHEAD AND LINK UP HOUSEHOLDS NOW TO FEND OFF COMPETITION THE COMPANY PLANS TO SPEND 60 MILLION A YEAR FOR AS LONG AS A DECADE TO REPLACE MUCH OF THE COAXIAL CABLE WITH STATEOFTHEART FIBER OPTICS AMONG OTHER UPGRADES ABOUT A THIRD OF THE FINANCING IS EXPECTED TO BE INTERNALLY GENERATED THE YOUNGER MR RIGAS SAYS THE COMPANY WOULD LIKE TO SELL MORE SHARES PUBLICLY BUT IT WITHDREW TWO PLANNED OFFERINGS OVER THE PAST YEAR BECAUSE THE COMMON'S PRICE WAS TOO LOW THE RESULT ADELPHIA'S CURRENT 177 BILLION IN LONGTERM DEBT COULD SWELL THE NEW DEBT COULD BE COSTLY ADELPHIA IS ONE OF FIVE CABLE COMPANIES THAT MOODY'S INVESTORS SERVICE INC IS REVIEWING FOR POSSIBLE DOWNGRADE IN LIGHT OF THE REREGULATION THE OTHERS ARE CABLEVISION INDUSTRIES CORP CABLEVISION SYSTEMS CORP CENTURY COMMUNICATIONS CORP AND JONES INTERCABLE INC ADELPHIA'S LONGTERM DEBT IS NOW RATED SINGLEB2 AND SINGLEB BY MOODY'S AND STANDARD & POOR'S CORP RESPECTIVELY MR RIGAS THE CHIEF FINANCIAL OFFICER SAYS REREGULATION WILL LOWER ANNUAL REVENUE LESS THAN 5 MANY CABLE OPERATORS HAVEN'T REVEALED HOW THEY WILL BE AFFECTED BUT MOODY'S ANALYST GERY SAMPERE ESTIMATES AN AVERAGE 10 PRICE CUT FOR BASIC CABLE SERVICE MARION BOUCHER A VICE PRESIDENT WITH DONALDSON LUFKIN & JENRETTE SAYS THE COMBINATION OF HEAVY DEBT LOADS AND THE CABLE REREGULATION BILL HAS SET SOME CABLE COMPANIES BACK FIVE OR SIX PACES BUT IT'S NOT ALL GLOOM IN THE CABLE WORLD SOME COMPANIES HAVE GROWN MUCH STRONGER FINANCIALLY OVER THE PAST SEVERAL YEARS THANKS TO A SLOWED PACE OF ACQUISITION IMPROVED CASH FLOW REDUCED RELIANCE ON BANK DEBT AND GROWING USE OF LONGTERM PUBLIC DEBT SAYS ROBERT NELSON AN S&P DIRECTOR IN FACT TELECOMMUNICATIONS INC THE NATION'S LARGEST CABLE OPERATOR BROKE OUT OF JUNKBOND TERRITORY LAST OCTOBER OBTAINING INVESTMENTGRADE STATUS FROM ALL MAJOR DEBTRATING SERVICES TCI IS THE TIFFANY'S OF THE CABLE INDUSTRY MS BOUCHER THE DLJ VICE PRESIDENT SAYS INVESTMENTGRADE STATUS HAS TWO MAJOR BENEFITS IT LOWERS BORROWING COSTS TCI FOR INSTANCE PAYS 36 PERCENTAGE POINTS LESS IN INTEREST ON 10YEAR DEBT THAN DOES ADELPHIA THE HIGHER RATING ALSO SHARPLY INCREASES THE NUMBER OF PENSION PLANS INSURANCE COMPANIES AND OTHER INSTITUTIONS THAT CAN BUY A COMPANY'S DEBT THERE'S NOTHING MORE IMPORTANT TO A TREASURER THAN ACCESS TO CAPITAL SAYS BERNARD SCHOTTERS TCI'S TREASURER ALL THE WORK WE'VE DONE OVER THE PAST FOUR YEARS TO RESTRUCTURE THE BALANCE SHEET IS TO PREPARE US TO ENTER THE REALM OF THE FUTURE LAST SUMMER S&P ELEVATED TIME WARNER'S DEBT RATING TO INVESTMENT GRADE AFTER TOSHIBA CORP AND ITOCHU CORP SIGNED ON AS EQUITY PARTNERS SADDLED WITH 118 BILLION IN DEBT FROM ITS 1989 MERGER THE MEDIA GIANT HAS SOLD A STAGGERING 8 BILLION IN NOTES AND BONDS SINCE APRIL 1992 TO REDUCE RELIANCE ON BANK LOANS AND TO EXTEND DEBT MATURITIES BUT SOME SOLD SLUGGISHLY REFLECTING THE FACT THAT MANY INSTITUTIONS LIMIT THE AMOUNT OF SPLITRATED DEBT THEY BUY MOODY'S BEGAN REVIEWING TIME WARNER FOR POSSIBLE UPGRADE AFTER THE U S WEST DEAL WAS ANNOUNCED AND A DECISION IS EXPECTED SOON 9308260121 930826 TECHNOLOGY MARS OBSERVER FAILS TO CONTACT NASA PROSPECTS ARE DIM BY BARBARA ROSEWICZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US SPACE PROBE TO MARS DASHING ONE OF NASA'S LAST BEST HOPES FOR SALVAGING THE 1 BILLION MISSION FAILED TO CALL HOME AS PROGRAMMED AFTER LOSING TOUCH WITH EARTH FIVE DAYS AGO OFFICIALS OF THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION SAID THAT THE SITUATION IS GROWING GRIMMER BUT THAT THEY AREN'T YET READY TO DECLARE THE MISSION A TOTAL LOSS THEY PLAN TO TAKE MORE AGGRESSIVE STEPS TO MODIFY THE SPACECRAFT'S COMPUTER AND TELECOMMUNICATIONS SYSTEMS TO TRY TO REESTABLISH CONTACT WITH THE ERRANT MARS OBSERVER PROBE THE CURRENT SITUATION WITHOUT COMMUNICATIONS CERTAINLY ERODES OUR PROSPECTS CONSIDERABLY AT THIS POINT SAID GLENN CUNNINGHAM PROJECT MANAGER EVERY DAY IN FACT WITHOUT COMMUNICATIONS CLEARLY LESSENS OUR PROBABILITY OF SUCCESS BUT HE ADDED WE HAVE NOT GIVEN UP THE OBSERVER'S PREDICAMENT IS MORE COMPLICATED NOW THAN WHEN COMMUNICATIONS WERE LOST OVER THE WEEKEND NOW NASA FLIGHT CONTROLLERS DON'T KNOW WHETHER THE SPACECRAFT HAS DESCENDED TO MARS'S ORBIT AS IT WAS PROGRAMMED TO DO OR IS FLOATING LISTLESSLY PAST MARS INTO A LOOPING ORBIT AROUND THE SUN WITHOUT RADIO CONTACT NASA ISN'T EVEN SURE THE SPACECRAFT STILL EXISTS THE LATEST FAILURE INVOLVED A CLOCK ON BOARD THE CRAFT THAT WAS PROGRAMMED TO CONTACT EARTH IF IT FELL OUT OF TOUCH FOR FIVE DAYS NASA LAST WAS SURE ITS SIGNALS WERE RECEIVED BY THE OBSERVER LAST FRIDAY BECAUSE NASA ISN'T SURE WHETHER THE SPACE PROBE IS HEARING ITS COMMANDS AND SIMPLY CAN'T RESPOND IT WILL TEST THE CLOCK AGAIN EVENTUALLY BY STOPPING ALL SIGNALS FOR FIVE DAYS HOWEVER MR CUNNINGHAM SAID THAT ENGINEERS FIRST WILL SEND COMPUTER ORDERS TO MAKE MORE AGGRESSIVE CHANGES IN THE CRAFT'S TELECOMMUNICATIONS SYSTEMS AND TO REBOOT ITS CENTRAL COMPUTERS WHICH WOULD RESTART AND THEN RELOAD THE COMPUTERS' PROGRAMS EVEN IF THE SPACECRAFT HAS MADE IT INTO MARS'S ORBIT THE MISSION WOULD BE A TOTAL LOSS UNLESS COMMUNICATIONS ARE RESTORED AND DATA AND PICTURES SHOWING MARS'S TERRAIN CLIMATE ATMOSPHERE AND MAGNETIC FIELDS CAN BE RETURNED TO EARTH SUCH AN EXPENSIVE LOSS WOULD BE A HUMILIATING BLOW TO NASA AND SCIENTISTS SAY THE RESEARCH PLANNED FOR THE OBSERVER WOULD HAVE TO BE REPEATED BEFORE ANY CHANCE OF HUMAN EXPLORATION OF THE RED PLANET THE US LAST EXPLORED MARS IN 1976 WHEN TWO VIKING SPACECRAFT LANDED EQUIPMENT ON THE PLANET 9308260120 930826 OUR PENSIONS BABYBOOM RETIREES DESTINED TO GO BUST BY CAROLYN L WEAVER WHEN PRESIDENT CLINTON RETURNS TO THE WHITE HOUSE HE IS SURE TO COME ARMED WITH PROPOSALS FOR REVAMPING FEDERAL PROGRAMS IN THE NAME OF REGAINING CONTROL OF OUR ECONOMIC DESTINY INVESTING IN THE FUTURE AND GENERALLY PREPARING FOR THE NEXT CENTURY REGRETTABLY A PROPOSAL FOR SOCIAL SECURITY REFORM IS UNLIKELY TO BE AMONG THEM THE NATION'S FIRST BABYBOOM PRESIDENT HAS YET TO EVEN ENGAGE A DEBATE ON THE REFORM OF A SYSTEM SO OVERCOMMITTED TO HIS AND MY GENERATION THERE WERE EARLY INDICATIONS THAT THE PRESIDENT WOULD SIDESTEP SOCIAL SECURITY CAMPAIGNING LAST FALL THENCANDIDATE CLINTON SAID WE'RE NOT GOING TO FOOL WITH SOCIAL SECURITY IT'S SOLID IT'S SECURE IT'S SOUND THESE WORDS WERE UTTERED JUST MONTHS BEFORE THE SOCIAL SECURITY BOARD OF TRUSTEES COMPRISING MR CLINTON'S OWN SECRETARIES OF TREASURY LABOR AND HEALTH AND HUMAN SERVICES AMONG OTHERS REPORTED THAT SOCIAL SECURITY HAD A SIZABLE LONGRANGE DEFICIT AND WOULD LIKELY BE INSOLVENT BY 2036 UNDER THE TRUSTEES' INTERMEDIATE PROJECTIONS THE SURPLUSES WE HEAR SO MUCH ABOUT TODAY GIVE WAY TO DEFICITS IN 2016 JUST AFTER THE BABYBOOM GENERATION BEGINS RETIRING AND BENEFITS CAN BE MET THEREAFTER ONLY BY DRAWING ON INTEREST PAYMENTS FROM THE FEDERAL TREASURY AND ULTIMATELY BY REDEEMING ALL THE BONDS CREDITED TO THE TRUST FUNDS SOCIAL SECURITY'S LONGRANGE DEFICIT AVERAGES 39 BILLION ANNUALLY IN 1993 DOLLARS OVER THE NEXT 75 YEARS OR ABOUT 18 TRILLION IN PRESENTVALUE TERMS UNDER THE PESSIMISTIC ASSUMPTIONS DEFICITS ARE MUCH LARGER AND THE PROJECTED DATE OF INSOLVENCY 2017 IS MUCH SOONER INSOLVENCY WOULD OCCUR EVEN SOONER OF COURSE IF THE RESERVES NOW ACCUMULATING IN THE TRUST FUNDS WERE USED TO BAIL OUT MEDICARE OR TO FUND A NEW PROGRAM LIKE LONGTERM HEALTH CARE THIS GLOOMY FORECAST IS UNAFFECTED BY THE NEW SOCIAL SECURITY BENEFIT TAX HIKE SINCE THE ADDITIONAL REVENUES WILL BE DIVERTED TO THE MEDICARE TRUST FUND IF 2036 SOUNDS LIKE SOMEONE ELSE'S PROBLEM CONSIDER THIS CLOSE TO HALF THE BABYBOOM RETIREES THOSE OF US NOW IN OUR 30S AND 40S WILL STILL BE ALIVE HOPING TO CONTINUE DRAWING BENEFITS AND MOST OF OUR CHILDREN INCLUDING MILLIONS OF YOUNG PEOPLE NOW ENTERING THE WORK FORCE WILL STILL BE WORKING AND PAYING TAXES HOPING TO DRAW BENEFITS WHEN THEY RETIRE EVEN IF CONGRESS HAD THE LUXURY OF DELAYING ACTION UNTIL 2036 IT WOULD TAKE AN IMMEDIATE 25 INCREASE IN THE PAYROLL TAX OR A COMPARABLE REDUCTION IN BENEFITS FOR PEOPLE ON THE ROLLS TO MAKE ENDS MEET AT THE TIME BY CONTRAST A 10 REDUCTION IN THE GROWTH OF FUTURE BENEFITS IF ENACTED TODAY WOULD VIRTUALLY ELIMINATE THE LONGRANGE DEFICIT FINANCES ARE NOT ALL THAT AILS SOCIAL SECURITY THOUGH WHEREAS SOCIAL SECURITY ONCE BESTOWED HUGE WEALTH TRANSFERS ON RETIREES IT OFFERS TODAY'S YOUNG WORKERS ON AVERAGE A REAL RETURN ON TAXES OF NO MORE THAN ABOUT 1 TO 2 THE GROWTH RATE OF REAL WAGES WHICH IS SUBSTANTIALLY BELOW THE REAL RETURN ON PRIVATE CAPITAL SOCIETY AS A WHOLE WOULD BENEFIT FROM A SYSTEM BUILT INSTEAD ON REAL CAPITAL INVESTMENT IN A STUDY OF IMPLICIT RATES OF RETURN ON TAXES ECONOMIST MICHAEL BOSKIN AND HIS COLLEAGUES FOUND THAT MOST WORKERS BORN AFTER 1945 WILL SUFFER WEALTH LOSSES UNDER SOCIAL SECURITY ACCORDING TO THEIR ESTIMATES A WORKER WITH MEDIAN EARNINGS AND A NONWORKING SPOUSE RETIRING AT 65 IN 1980 HAD A HEALTHY EXPECTED REAL RETURN OF 55 COMPARED WITH 21 FOR WORKERS RETIRING IN 2010 THE 1945 BIRTH COHORT THE EXPECTED NET LOSS FOR THE 2025 RETIREE WAS FOUND TO BE 48000 IN PRESENTVALUE TERMS COMPARED WITH A NET GAIN FOR THE 1980 RETIREE OF 63000 TWOEARNER COUPLES AND SINGLE PEOPLE FARE MUCH MORE POORLY IN A WORLD WITH INTERNATIONAL CAPITAL MARKETS AND A WIDE ARRAY OF INVESTMENT OPPORTUNITIES A WORLD VASTLY DIFFERENT FROM THAT OF THE 1930S WHEN SOCIAL SECURITY WAS ENACTED IT SHOULD COME AS NO SURPRISE THAT MIDDLEAGED AND YOUNGER WORKERS INCREASINGLY SEEK THE RIGHT AND THE FLEXIBILITY TO INVEST THEIR TAXES IN HIGHERYIELDING PRIVATE INVESTMENTS SOCIAL SECURITY IS ALSO UNDER PRESSURE BECAUSE OF THE WAY IT TREATS PEOPLE WITH DIFFERENT FAMILY WORK AND SAVINGS PATTERNS THE BENEFIT SUPPLEMENT FOR SPOUSES FOR EXAMPLE SUBSIDIZES THE ONCETRADITIONAL FAMILY ONE BREADWINNER AND A NONWORKING SPOUSE AT THE EXPENSE OF SINGLE PEOPLE AND THE NOWTRADITIONAL TWOEARNER COUPLE THE EARNINGS TEST AND VARIOUS ADJUSTMENTS FOR EARLY OR DELAYED RETIREMENT SUBSIDIZE PEOPLE WHO RETIRE AT 65 AND POSSIBLY EARLIER AT THE EXPENSE OF THOSE WHO RETIRE LATER AND BENEFIT TAXATION WHICH APPLIES ONLY TO PEOPLE WITH INCOMES ABOVE A CERTAIN LEVEL SUBSIDIZES PEOPLE WHO DO NOT SAVE OR WORK TO GENERATE PRIVATE RETIREMENT INCOMES AT THE EXPENSE OF THOSE WHO DO THESE CROSSSUBSIDIES AND OTHERS LIKE THEM CREATE PERVERSE IF UNINTENDED WEALTH TRANSFERS WHILE DISTORTING INDIVIDUALS' DECISIONS REGARDING WORK SAVING AND EVEN MARRIAGE SOCIAL SECURITY CREATED DURING THE DEPRESSION AND EXPANDED RAPIDLY DURING HIGHGROWTH DECADES OF THE PAST NEEDS REVAMPING FOR THE 21ST CENTURY IT IS A COSTLY AND POORLY TARGETED SYSTEM OF INCOME TRANSFERS THAT FAILS TO REFLECT ON THE ONE HAND THE ADVANCES IN ECONOMIC AND FINANCIAL INSTITUTIONS THAT HAVE WIDENED AND IMPROVED OPPORTUNITIES FOR ORDINARY CITIZENS TO SAVE FOR THEIR OWN RETIREMENT AND ON THE OTHER HAND THE GREAT IMPROVEMENT IN THE RELATIVE ECONOMIC WELLBEING OF THE ELDERLY IT IS A SYSTEM OF LARGELY UNFUNDED BENEFIT PROMISES DEBT BACKED UP BY GOVERNMENT IOUS RATHER THAN BY REAL CAPITAL PRESIDENT CLINTON ON THE LEADING EDGE OF THE BABY BOOM WHICH HITS AGE 60 IN JUST 13 YEARS WOULD DO WELL TO OPEN THE DIALOGUE ON SOCIAL SECURITY REFORM REFORMS MUST BE ENACTED IN THE 1990S IF BABYBOOM WORKERS WHO WILL BEGIN FLOODING THE SOCIAL SECURITY ROLLS IN 15 YEARS ARE TO BE GIVEN THE LEAD TIME NECESSARY TO AVOID SERIOUS DISRUPTIONS IN THEIR RETIREMENT PLANS AND IF THEIR CHILDREN ARE TO BE PROTECTED FROM TAX INCREASES THAT COULD PRECLUDE RETIREMENT SAVINGS BY ALL BUT THE WEALTHIEST IN SOCIETY MS WEAVER IS THE DIRECTOR OF THE SOCIAL SECURITY AND PENSION PROJECT AT THE AMERICAN ENTERPRISE INSTITUTE IN WASHINGTON 9308260119 930826 INTERNATIONAL CADBURY TO BUILD PLANT IN POLAND LONDON BRITISH CONFECTIONERY AND SOFTDRINK COMPANY CADBURY SCHWEPPES PLC SAID IT INTENDS TO BUILD A CHOCOLATE AND SUGAR CONFECTIONERY FACTORY IN POLAND THE COMPANY SAID THE INVESTMENT EXPECTED TO TOTAL 20 MILLION 30 MILLION IS AN IMPORTANT STEP IN DEVELOPING ITS PRESENCE IN THE RAPIDLY GROWING CENTRAL AND EASTERN EUROPEAN CONFECTIONERY MARKET 9308260118 930826 TECHNOLOGY IN THE LAB SCIENTISTS DESIGN GREENER' PLASTIC FOR RECYCLING BY USING ENZYMES BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH FOR THE FUTURE OF PLASTIC RECYCLING ALAN RUSSELL AND ERIC BECKMAN HAVE ONE WORD BIOPLASTIC IN AN 11THFLOOR UNIVERSITY OF PITTSBURGH LAB THE TWO SCIENTISTS ARE DESIGNING PLASTIC THAT CAN BE MADE WITHOUT TOXIC BYPRODUCTS AND RECYCLED WITH HELP FROM AN ENZYME IRONICALLY THE GREEN TECHNOLOGY WASN'T THE POINT OF DRS RUSSELL AND BECKMAN'S EXPERIMENTS BUT A BYPRODUCT OF THEIR WORK ON POLYMERS TODAY'S GREEN PLASTICS AREN'T EXACTLY BENIGN EVEN BIODEGRADABLE GARBAGE BAGS FOR INSTANCE ARE MADE WITH ORGANIC SOLVENTS SUCH AS TETRAHYDRAFURON A TOXIC THAT IRRITATES EYES SKIN AND MUCOUS MEMBRANES AND WHILE THESE BAGS DO BREAK DOWN IN LABORATORIES THEY CAN TAKE SCORES OF YEARS TO DO IT IN A LANDFILL WHERE THERE'S NO AIR VERY LITTLE PLASTIC IS RECYCLED TIDE BOTTLES ARE MADE OF DIFFERENT PLASTIC THAN RAZOR HANDLES OR COFFEE LIDS BUT ALL OF THESE END UP IN THE SAME GARBAGE BAG THE ONLY WAY TO RECYCLE THEM IS TO SORT THEM OUT BY HAND INTO THEIR DIFFERENT TYPES WHICH COSTS MORE THAN MAKING NEW ONES INSTEAD MUNICIPALITIES PUT THE PLASTIC IN LANDFILL OR BURN IT WHICH CAN EMIT HARMFUL GASES INTO THE AIR EVEN PLASTIC BOTTLES WITH RECYCLING SYMBOLS ON THE BOTTOM CAN'T BE TOTALLY RECYCLED ONCE RECYCLED PLASTIC FROM THESE BOTTLES ISN'T PURE ENOUGH TO BE USED FOR DRINKING CONTAINERS AGAIN INSTEAD IT COMES BACK AS CARPET FILLER OR OTHER FIBERS DRS RUSSELL AND BECKMAN SAY THEIR BIOPLASTIC CAN BE TOTALLY RECYCLED WITHOUT HAVING TO BE SORTED BY HAND AND IT WOULDN'T POLLUTE THE ENVIRONMENT BECAUSE INSTEAD OF MAKING IT IN ORGANIC SOLVENTS THEY MAKE IT WITH CARBON DIOXIDE WHICH IS A COMPONENT OF AIR AND WITH ENZYMES WHICH ARE PROTEINS MADE BY CELLS TO MAKE PLASTIC CHEMISTS BOND MONOMERS THE BUILDING BLOCKS OF MATTER INTO CHAINS OF MONOMERS OR POLYMERS ENZYMES CAN FORM THESE BONDS AND BREAK THEM TOO THAT MEANS PLASTICS MADE WITH ENZYMES CAN BE BROKEN DOWN BY THE SAME ENZYMES INTO MONOMERS SO FAR DR RUSSELL HAS USED THIS PRACTICE TO MAKE POLYESTER THEORETICALLY IT SHOULD WORK ON OTHER PLASTICS TOO IF ALL PLASTICS WERE BONDED WITH THE SAME ENZYME THEY COULD BE BROKEN DOWN BY THAT ENZYME EVEN IF THEY AREN'T SORTED THE RESULT WOULD BE A MIX OF DIFFERENT MONOMERS WHICH COULD BE SORTED USING BASIC CHEMISTRY AND THEN REFORMED INTO NEW POLYMERS TO MAKE PLASTIC BOTTLES OR ANYTHING ELSE BUT BIOPLASTIC WON'T HIT GROCERY SHELVES ANYTIME SOON USING ENZYMES TO MAKE PLASTIC WOULD REQUIRE REVAMPING THE ENTIRE PLASTIC INDUSTRY IT WILL ALWAYS COST MORE TO RECYCLE THAN TO THROW THINGS AWAY DR RUSSELL FIGURES UNDER A MOTIVATIONAL SIGN IN THEIR LAB WORK HARD OR BE EATEN BY WOLVES DRS RUSSELL AND BECKMAN EXPERIMENT WITH HOW DIFFERENT MONOMERS BOND TOGETHER THEY DO THIS BY OBSERVING PIG LIVER ENZYMES IN A MINIATURE WASHING MACHINE A PRESSURIZED STEEL CHAMBER SHAPED LIKE A ROLL OF TOILET PAPER WITH A SAPPHIRE WINDOW CUT IN THE SIDE SAPPHIRE RESISTS PRESSURE AND STANDS UP WELL TO CHEMICAL ATTACKS THE CHAMBER CONTAINS ABOUT 50 MILLILITERS OR ONE COFFEE MUG'S WORTH OF CARBON DIOXIDE BUT NOT IN ITS NATURAL GASEOUS FORM INSTEAD THIS CARBON DIOXIDE IS SUPERCRITICAL WHICH MEANS IT ACTS PARTLY LIKE A LIQUID AND PARTLY LIKE A GAS BY CHANGING THE PRESSURE OF THE CARBON DIOXIDE CHEMISTS MAKE IT MORE OR LESS VISCOUS CHANGING THE WAY THE MONOMERS ARE BONDED BY ENZYMES DR BECKMAN SAYS THIS FLUID CAN CHEMICALLY SORT OUT TODAY'S PLASTIC RECYCLERS CAN SIMPLY SHRED PLASTIC AND DUMP THE PIECES INTO A HIGHPRESSURE TANK OF SUPERCRITICAL CARBON DIOXIDE BY CHANGING THE PRESSURE OF THE FLUID THE RECYCLERS COULD GET ALL OF THE SAME TYPE OF PLASTIC TO FLOAT TO THE TOP STARTING WITH THE LIGHTEST PLASTIC FIRST SEVERAL COMPANIES ARE CONSIDERING LICENSING THE TECHNOLOGY HE SAYS WATCHING THEIR EXPERIMENT IS LIKE WATCHING A WASHING MACHINE IN THE SOAK CYCLE ALL THAT'S VISIBLE IS POWDER FLOATING AROUND DR RUSSELL DOESN'T HAVE TO SEE IT TO CONDUCT HIS EXPERIMENT BUT LIKE A COOK WHO CAN'T RESIST CHECKING THE PROGRESS OF A STEW YOU FEEL MUCH BETTER IF YOU LOOK AT IT HE SAYS THE WINDOW ROUGHLY THE SIZE OF A QUARTER COST 400 ABOUT 40 TIMES WHAT DR RUSSELL PAID THE UNIVERSITY'S METAL SHOP TO MAKE THE STEEL CHAMBER IN MINUTES OR HOURS DEPENDING ON HOW MANY ENZYMES ARE INSIDE THE MONOMERS BOND INTO POLYMERS A PROCESS THEY CALL TINKERTOY CHEMISTRY TO SEE WHAT SIZE OF POLYMERS HAVE BEEN MADE THE TWO SCIENTISTS LET THE CARBON DIOXIDE ESCAPE REMOVE THE SOLID POLYMERS PUT THEM IN A NEW SOLUTION AND DUMP THEM INTO A GEL PERMEATION CHROMATOGRAPH A LONG TUBE WITH BEADS WHICH HAVE TINY HOLES IN THEM THE CHROMATOGRAPH CAN TELL HOW LONG EACH POLYMER IS BY HOW LONG IT TAKES THEM TO PASS THROUGH THIS BATCH IS NEARLY PERFECT ALMOST ALL THE POLYMERS CAME OUT THE SAME SIZE INDEED THIS WAS THE ORIGINAL GOAL OF DRS RUSSELL AND BECKMAN'S EXPERIMENTS AS FAR AS THEY KNOW NO ONE ELSE CAN MAKE POLYMERS OF ALL ONE LENGTH FIXEDLENGTH POLYMERS CAN BE USED TO MAKE PLASTIC THAT INTERACTS WITH THE ENVIRONMENT SUCH AS A GAS MASK THAT SENSES NERVE GAS AND REACTS BY NOT LETTING ANY THROUGH DR RUSSELL SAYS THE FACT THAT THE TWO SCIENTISTS ARE COLLABORATING AT ALL IS LARGELY AN ACCIDENT THEY ONLY GOT TO KNOW EACH OTHER BECAUSE THEY WERE BOTH HIRED BY THE UNIVERSITY AT ABOUT THE SAME TIME IN 1989 BEFORE THEN DR RUSSELL A BIOTECHNOLOGIST DIDN'T KNOW MUCH ABOUT SUPERCRITICAL FLUIDS DR BECKMAN A POLYMER CHEMIST WAS EQUALLY MYSTIFIED BY ENZYMES TO ME ENZYMES WERE BLOBBY THINGS YOU WASH CLOTHES WITH HE SAYS 9308260117 930826 INTERNATIONAL GERMAN AUTO OUTPUT FELL 32 DURING JULY STEEPEST SO FAR IN '93 SPECIAL TO THE WALL STREET JOURNAL FRANKFURT GERMAN CAR PRODUCTION TUMBLED 32 IN JULY FROM A YEAR EARLIER ITS SHARPEST DROP OF THE YEAR FOR ALL OF 1993 NEW PASSENGER CAR REGISTRATIONS IN GERMANY ARE EXPECTED TO DROP 21 TO 31 MILLION FROM 39 MILLION IN 1992 PREDICTED ACHIM DIEKMANN MANAGING DIRECTOR OF THE VDA GERMAN AUTOMOBILE INDUSTRY ASSOCIATION REGISTRATIONS OF TRUCKS IN GERMANY WILL PLUNGE NEARLY 8 OR 21300 VEHICLES TO ABOUT 250000 THIS YEAR FROM 271279 LAST YEAR HE ADDED TOTAL PRODUCTION OF CARS AND TRUCKS FROM GERMANBASED FACTORIES WILL DROP BY ABOUT ONE MILLION VEHICLES OR 20 TO JUST OVER FOUR MILLION FROM 52 MILLION BUILT IN 1992 MR DIEKMANN SAID THE OUTLOOK FOR 1994 IS UNCLEAR HE ADDED BUT HE SAID THAT IF THE LONGAWAITED INCREASE IN EXPORTS FINALLY MATERIALIZES NEXT YEAR PASSENGERCAR PRODUCTION IN 1994 COULD REBOUND 56 THE LATEST PRODUCTION FIGURES COMPILED EACH MONTH BY THE AUTOMOBILE ASSOCIATION SHOW PASSENGERCAR PRODUCTION FELL 111427 CARS OR 32 TO 235700 IN JULY FROM A YEAR EARLIER THAT WAS THE STEEPEST OUTPUT DECLINE SO FAR THIS YEAR OUTSTRIPPING YEARONYEAR DROPS THAT HAVE RANGED BETWEEN 17 AND 30 IN THE FIRST SEVEN MONTHS OF THE YEAR CAR OUTPUT DROPPED 25 TO 2211500 UNITS FROM 2947218 IN JULY 1992 THE REPORT SAID PRODUCTION OF GERMANMADE TRUCKS FELL 33 IN JULY FROM A YEAR EARLIER 9308260116 930826 INTERNATIONAL ERICSSON SETS CHINESE VENTURE STOCKHOLM SWEDISH TELECOMMUNICATIONS GROUP TELEFON AB LM ERICSSON SIGNED AN AGREEMENT WITH NORTH EAST COMMUNICATIONS GROUP CO OF CHINA TO JOINTLY FORM A COMPANY IN THE CHINESE CITY OF DALIAN THE NEW COMPANY DALIAN ERICSSON CO WILL PARTICIPATE IN ENGINEERING ASSEMBLY AND TECHNICAL SUPPORT OF ERICSSON TELEPHONEEXCHANGE SYSTEMS TO BE DELIVERED TO CUSTOMERS IN NORTHERN CHINA ERICSSON SAID DALIAN ERICSSON WILL HAVE TOTAL EQUITY STOCK EQUIVALENT TO 5 MILLION WITH THE SWEDISH GROUP THE MAJORITY OWNER WHEN THE COMPANY REACHES FULL OPERATION IN 1995 IT IS EXPECTED TO EMPLOY ABOUT 200 PEOPLE ERICSSON SAID 9308260115 930826 CORNING COSTAR STOCK SWAP CORNING NY CORNING INC AND COSTAR CORP ESTABLISHED AN EXCHANGE RATIO FOR AN ANNOUNCED MERGER VALUED AT 180 MILLION THE RATIO IS 079239 SHARE OF CORNING COMMON STOCK FOR EACH COSTAR SHARE COSTAR BASED IN CAMBRIDGE MASS HAS 68 MILLION SHARES OUTSTANDING AND 500000 SHARES IN OPTIONS COSTAR SHAREHOLDERS WILL VOTE ON THE PROPOSED MERGER SEPT 8 COSTAR MAKES PLASTIC DISPOSABLE FILTRATION FOR LABORATORY USE CORNING MAKES GLASS PLASTIC AND CONSUMER HOUSEWARES 9308260114 930826 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH METROPOLITAN LIFE CONTRACTS VALUED AT ABOUT 115 MILLION AMERICAN TELEPHONE & TELEGRAPH CO SAID METROPOLITAN LIFE INSURANCE CO AWARDED IT CONTRACTS VALUED AT ABOUT 115 MILLION AT&T SAID METLIFE IS MIDWAY THROUGH A FIVEYEAR CONTRACT FOR VOICE AND DATA SERVICES WHICH WAS EXTENDED BY A YEAR UNDER THE TERMS OF THE NEW AGREEMENT IN ADDITION METLIFE SIGNED A FOURYEAR CONTRACT FOR AT&T LONGDISTANCE AND TOLLFREE SERVICES TO ENHANCE PRODUCTIVITY AT METLIFE'S CUSTOMER SERVICE CENTERS 9308260113 930826 ACCOUNTING GROUP IS EXPECTED TO CALL FOR INCREASE IN DATA IN ANNUAL REPORTS BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A KEY ACCOUNTING GROUP IS EXPECTED TO CALL FOR A SHARP INCREASE IN THE AMOUNT OF INFORMATION COMPANIES MUST DISCLOSE IN THEIR ANNUAL REPORTS THE PROSPECT ALARMS CORPORATE FINANCIAL OFFICERS IF ADOPTED THE RECOMMENDATIONS COULD FORCE COMPANIES TO CHANGE THE WAY THEY FIGURE PROFITS AND MAKE THEM DISCLOSE MORE DATA ABOUT THE COMPETITIVE PRESSURES THEY FACE THE CHANGES ALSO COULD TRANSFORM THE AUDITOR'S STATEMENT IN A COMPANY'S ANNUAL REPORT FROM THE CURRENT BOILERPLATE MESSAGE TO A LONGER AND MUCH MORE REVEALING STATEMENT ABOUT THE COMPANY'S HEALTH SOME FINANCIAL EXECUTIVES WILL SCREAM AND HOWL SAYS BRUCE WILLIS A FORMER FINANCIAL ACCOUNTING STANDARDS BOARD PROJECT MANAGER WHO HAS HELPED THE BLUERIBBON GROUP THE FINANCIAL REPORTING SPECIAL COMMITTEE OF THE 310000MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS THE PANEL WAS FORMED TWO YEARS AGO TO FIND WAYS TO IMPROVE DISCLOSURE IN FINANCIAL REPORTS TO HELP INVESTORS AND FINANCIAL ANALYSTS BECAUSE THE COMMITTEE INCLUDES THE TOP TECHNICAL PARTNERS OF THE SIX BIGGEST US ACCOUNTING FIRMS ITS RECOMMENDATIONS WHICH ARE DUE IN MID1994 WOULD CARRY GREAT WEIGHT WITH THE ACCOUNTING AND AUDITING STANDARDSETTERS AND REGULATORS WHO WOULD HAVE TO APPROVE THE CHANGES IT WOULD BE HARD TO IGNORE THE COMMITTEE'S CONCLUSIONS SAYS THOMAS E JONES EXECUTIVE VICE PRESIDENT FINANCE OF CITICORP SO FAR THE COMMITTEE HAS KEPT ITS DISCUSSIONS UNDER WRAPS AND IT COULD ALWAYS CHANGE DIRECTION BUT BASED ON INTERVIEWS WITH MR WILLIS AND TWO COMMITTEE MEMBERS EDWARD F ROCKMAN A PITTSBURGH ACCOUNTANT AND WILLIAM W HOLDER AN ACCOUNTING ACADEMIC HERE ARE SOME OF THE PROBABLE SPECIFIC RECOMMENDATIONS ELIMINATE THE STANDARD AUDITOR'S STATEMENT IN THE ANNUAL REPORT WHICH IS MAINLY A BOILERPLATE UNLESS A COMPANY HAS A BIG FINANCIAL PROBLEM INSTEAD THE AUDITOR WOULD RECOUNT IN MORE DETAIL SIMILAR TO THE SECTION DEVOTED TO MANAGEMENT'S DISCUSSION AND ANALYSIS ANY PROBLEMS OR POTENTIAL FOR PROBLEMS AT THE COMPANY REQUIRE COMPANIES TO REPORT CORE AND COMPREHENSIVE EARNINGS INSTEAD OF MERELY STATING COMPANYWIDE PROFIT THE EFFECTIVE RESULT COULD BE THREE BOTTOMLINE NUMBERS FOR EACH COMPANY CORE PROFITS MIGHT INCLUDE ONLY THE RESULTS OF CONTINUING OPERATIONS AND WOULD ELIMINATE FUNDS FROM THE SALE OF TROUBLED ASSETS COMPREHENSIVE EARNINGS MIGHT INCLUDE UNREALIZED GAINS OR LOSSES FROM CURRENCY TRANSLATION OR FROM THE CHANGE IN MARKET VALUE OF SECURITIES HELD FOR SALE CURRENTLY BOTH OF THESE ITEMS ARE CHARGED TO EQUITY ON THE BALANCE SHEET RATHER THAN TO THE PROFITANDLOSS STATEMENT REQUIRE FINANCIAL STATEMENTS TO INCLUDE SUCH SOFT INFORMATION AS ESTIMATES OF POTENTIAL COMPETITORS' ABILITY TO ENTER THE INDUSTRY AND THE NUMBER OF PRODUCT PRICE CHANGES THE COMPANY HAS MADE IN RESPONSE TO COMPETITORS' PRICE SHIFTS FORCE BIGGER COMPANIES TO ISSUE FAR MORE FINANCIAL DATA THAN SMALLER COMPANIES WITH BREAKDOWNS BEING CONSIDERED ON THE BASIS OF SIZE AND OTHER CRITERIA DEMAND THAT COMPANIES BREAK DOWN THEIR FINANCIAL DATA INTO MORE SEGMENTS THAN AT PRESENT SO THAT INVESTORS AND FINANCIAL ANALYSTS COULD KNOW MORE ABOUT THE COMPANY'S INDIVIDUAL BUSINESSES NONE OF THESE ARE YET SET IN STONE AS PROPOSALS BUT THEY CERTAINLY POINT TO THE DIRECTIONS WE'RE TAKING SAYS MR ROCKMAN A PARTNER IN ALPERN ROSENTHAL & CO A PITTSBURGH ACCOUNTING FIRM AS INFORMATION HAS BEGUN TO LEAK FROM THE COMMITTEE ABOUT CHANGES IT IS CONSIDERING FINANCIAL EXECUTIVES ARE ALREADY BEGINNING TO SWEAT P NORMAN ROY PRESIDENT OF THE 14000MEMBER FINANCIAL EXECUTIVES INSTITUTE WHICH INCLUDES OFFICIALS FROM THE BIGGEST US COMPANIES IS AMONG THE WORRIED MANY FEI MEMBERS HAVE ALREADY SEEN ENORMOUS CHANGES SUCH AS DOWNSIZING AND WRITEDOWNS AT THEIR COMPANIES MR ROY NOTES SO THEY WANT TO BE SURE THAT ANY CHANGES WON'T MAKE FINANCIAL REPORTING MORE COSTLY AND COMPLEX WITHOUT JUSTIFIED BENEFITS AND EFFICIENCIES MR JONES OF CITICORP ADDS CORPORATIONS ARE ALREADY SUFFERING FROM FINANCIALINFORMATION OVERLOAD SO THE COMMITTEE SHOULD BE VERY CAREFUL NOT TO WORSEN THE PROBLEM RONALD LEACH VICE PRESIDENT ACCOUNTING AT EATON CORP CLEVELAND FEELS THE COMMITTEE CAN ONLY MAKE CORPORATIONS' LIVES MORE DIFFICULT FOR EXAMPLE UNDER AN ACCOUNTING RULE ISSUED BY THE FASB IN 1976 EATON BREAKS DOWN ITS FINANCIAL DATA INTO TWO SEGMENTS PARTS FOR ELECTRICAL PRODUCTS AND PARTS FOR AUTOS AND TRUCKS AT THE URGING OF FINANCIALANALYST GROUPS THE COMMITTEE IS CONSIDERING REQUIRING COMPANIES TO BREAK DOWN THEIR FINANCIAL DATA INTO MORE SEGMENTS TO PROVIDE MORE INFORMATION FOR INVESTORS I'VE HEARD THAT THE COMMITTEE WOULD FAVOR MORE SEGMENTING OF DATA SO THAT AT EATON FOR EXAMPLE WE MIGHT HAVE TO DISCLOSE SALES AND PROFITS FOR A COMPANY UNIT THAT MAKES GOLFCLUB GRIPS MR LEACH SAYS WE DON'T FEEL SUCH ADDED DISCLOSURE IS WORTH THE TIME AND EFFORT FOR FINANCIALREPORT USERS MR WILLIS SAYS THE COMMITTEE HAS BEEN LOOKING AT FINANCIAL REPORTS OF 60 COMPANIES WITH ASSETS OF MORE THAN 10 BILLION THAT REPORT THEIR FINANCIAL RESULTS IN ONLY ONE SEGMENT AND THE COMMITTEE FEELS THAT SOME OF THESE COMPANIES COULD MAKE MORE MEANINGFUL BREAKDOWNS SAYS MR WILLIS BUT MR WILLIS CONCEDES THAT COMMITTEE PROPOSALS WON'T WIN FRIENDS IN THE CORPORATE EXECUTIVE SUITE BECAUSE THEIR AIM IS MAINLY TO PROVIDE MORE MEANINGFUL DISCLOSURE FOR FINANCIALSTATEMENT USERS MR HOLDER A PROFESSOR OF ACCOUNTING AT THE UNIVERSITY OF SOUTHERN CALIFORNIA IN LOS ANGELES SAYS THE COMMITTEE HAS A LOT OF CHANGES ON THE TABLE WITH SOME OF THEM BREATHTAKING BUT FINAL DECISIONS ON PROPOSALS HAVEN'T YET BEEN MADE PROPOSALS BY THE COMMITTEE WOULD HAVE TO BE APPROVED OR IMPLEMENTED BY THE FASB WHICH IS THE CHIEF ACCOUNTING RULEMAKING BODY IN THE PRIVATE SECTOR FOR ACCOUNTANTS THE AMERICAN INSTITUTE OF CPAS' AUDITING STANDARDS BOARD THE CHIEF AUDITING RULEMAKING GROUP FOR ACCOUNTANTS POSSIBLY THE INSTITUTE'S ACCOUNTING STANDARDS EXECUTIVE COMMITTEE WHICH ISSUES ACCOUNTING GUIDANCE AND THE SECURITIES AND EXCHANGE COMMISSION WHICH OVERSEES ALL OF THESE RULEMAKING GROUPS 9308260112 930826 INTERNATIONAL RTZ WILL SELL NONCORE UNIT FOR 12 BILLION SALE OF INDUSTRIAL BUSINESS TO MBCARADON IS PART OF A FOCUS ON MINING BY LAWRENCE INGRASSIA STAFF REPORTER OF THE WALL STREET JOURNAL LONDON RTZ CORP CONTINUING THE DISPOSAL OF ITS NONMINING BUSINESSES AGREED TO SELL MOST OF ITS RTZ PILLAR INDUSTRIALPRODUCTS GROUP TO MBCARADON PLC FOR 800 MILLION 12 BILLION THE SALE OF THE PILLAR OPERATIONS INCLUDING CONSTRUCTION GENERAL ENGINEERING AUTOMOTIVE AND AVIATION OPERATIONS NEARLY COMPLETES A DIVESTMENT PROGRAM THE INTERNATIONAL MINING COMPANY BEGAN IN THE LATE 1980S WITH THE ACQUISITION MBCARADON A DIVERSIFIED COMPANY WITH BUILDINGPRODUCTS INTERESTS CONTINUES ITS STRATEGY OF EXPANDING ITS PRESENCE IN CONSTRUCTION MARKETS THE TWO COMPANIES HAD DISCLOSED THEY WERE IN NEGOTIATIONS FOR THE SALE OF PILLAR RTZ WILL TAKE A PRETAX CHARGE OF 165 MILLION IN THE SECOND HALF LARGELY RELATED TO THE WRITEOFF OF GOODWILL AS A RESULT OF THE SALE BUT ANALYSTS SAID IT GOT A BETTERTHANEXPECTED PRICE FOR THE OPERATIONS WHICH HAVE BEEN HURT BY THE RECESSION MOREOVER THE SALE WILL ENABLE RTZ TO CONCENTRATE ON WHAT IT DOES BEST THEY SAID THEY ARE GETTING AWAY FROM BEING A CONGLOMERATE SAID JOHN SOUTER AN ANALYST AT SMITH NEW COURT BROKERAGE FIRM IN LONDON THEY ARE NO 1 IN THE MINING SECTOR WHERE THEY HAVE THE BEST MINES AND THE CHEAPESTCOST MINES IT'S VERY TIMECONSUMING FOR MANAGEMENT TO LOOK AFTER SMALL BUSINESS SUCH AS THOSE IN THE PILLAR GROUP ALL THE TIME RTZ IS A MAJOR PRODUCER OF COPPER GOLD IRON ORE ALUMINUM URANIUM AND OTHER MINERALS THROUGH ACQUISITIONS EARLIER THIS YEAR IT BECAME THE LARGEST COAL PRODUCER IN THE POWDER RIVER BASIN IN WYOMING RTZ INDICATED IT MIGHT MAKE FURTHER PURCHASES SAYING THAT OUR FINANCIAL STRENGTH AND SHARPLY FOCUSED STRATEGY PROVIDE AN EXCELLENT BASE FOR CONTINUED PURSUIT OF SUCH OPPORTUNITIES HOWEVER IT SAID NO ACQUISITIONS ARE IMMINENT RTZ SAID IT INTENDS TO SELL THE REMAINING SMALL BUSINESSES OF PILLAR INCLUDING METAL FABRICATION AND NONRESIDENTIAL CONSTRUCTION PRODUCT OPERATIONS THE BUSINESSES BEING ACQUIRED BY MBCARADON ACCOUNTED FOR 21 OR 981 MILLION OF RTZ'S OVERALL SALES OF 461 BILLION AND 95 OR 51 MILLION OF 537 MILLION OF PRETAX PROFIT LAST YEAR MBCARADON HAD FIRSTHALF PRETAX EARNINGS OF 1528 MILLION ON SALES OF 3655 MILLION THE COMPANY PLANS TO CHANGE ITS NAME TO CARADON PLC 9308260111 930826 PEPPERAND SALT FOR US TO PLACE OUR BETS THEY WILL LET ME FLOAT A LOAN IN SUPERMARKET LORE IN RAIN BESIDE THE DOOR FOUL LANGUAGE PAR FOR THE COARSE 9308260110 930826 DIVIDEND NEWS HARLEYSVILLE GROUP INC HARLEYSVILLE GROUP INC HARLEYSVILLE PA INCREASED THE INSURANCE HOLDING COMPANY'S QUARTERLY DIVIDEND 14 TO 16 CENTS A SHARE FROM 14 CENTS PAYABLE SEPT 30 TO SHARES OF RECORD SEPT 15 9308260109 930826 ICAHN'S ACF PLAN IS SCRUTINIZED BY PENSION AGENCY BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL THE PENSION BENEFIT GUARANTY CORP IS SCRUTINIZING CARL ICAHN'S PROPOSED RESTRUCTURING OF ACF INDUSTRIES INC THE RAILCAR MANUFACTURING AND LEASING COMPANY HE OWNS THE ACTION APPEARS TO SIGNAL A RENEWED INTEREST IN WASHINGTON IN PREVENTING CORPORATIONS FROM ESCAPING THEIR PENSION OBLIGATIONS AS REPORTED LAST WEEK THE NEW YORK FINANCIER INTENDS TO TRANSFER SECURITIES ASSETS AND OTHER BENEFITS VALUED AT 1 BILLION OUT OF THE EARTH CITY MO RAILCAR COMPANY AS PART OF A CONTEMPLATED REFINANCING BUT MR ICAHN'S PROPOSED RESTRUCTURING HAS CAUGHT THE EYE OF AN EARLY WARNING GROUP AT THE PBGC THAT MONITORS MERGERS AND OTHER TRANSACTIONS INVOLVING COMPANIES WHERE PENSION PLANS ARE UNDERFUNDED OR LACKING SUFFICIENT ASSETS TO MEET PROJECTED OBLIGATIONS ACCORDING TO A SPEECH EARLIER THIS YEAR BY MARTIN SLATE THE AGENCY'S EXECUTIVE DIRECTOR THE GROUP'S MISSION IS TO LOOK FOR TRANSACTIONS OR EVENTS WHERE WE CAN STEP IN AND MAKE A DIFFERENCE TO STRENGTHEN ONGOING UNDERFUNDED PENSION PLANS THE PBGC IS A FEDERAL AGENCY THAT PICKS UP THE TAB WHEN UNDERFUNDED PENSION FUNDS CAN'T MEET THEIR OBLIGATIONS TO RETIREES IT'S CONCERNED ABOUT A 50 MILLION UNDERFUNDING IN TWO OF ACF'S PENSION FUNDS A DEBT THAT MR ICAHN INTENDS TO LEAVE BEHIND WITH ACF AS HE RESHUFFLES THE COMPANY'S ASSETS ALTHOUGH THE PBGC IS CONCERNED IT'S UNCLEAR WHAT STEPS THE AGENCY MIGHT BE WILLING TO TAKE TO ALTER MR ICAHN'S PLAN TEN DAYS AGO ACF INDUSTRIES FILED FOR AN OFFERING OF 600 MILLION SENIOR SECURED NOTES AS PART OF A COMPLEX RESTRUCTURING WE ARE CLOSELY MONITORING THE SITUATION SAID JUDITH E BEKELMAN A SPOKESWOMAN FOR THE PBGC THE PENSION AGENCY IS WORRIED THAT MR ICAHN'S INTENTION TO REMOVE ASSETS FROM ACF INDUSTRIES INCLUDING A JUNK BOND PORTFOLIO VALUED AT 350 MILLION WILL WEAKEN THE COMPANY AND INCREASE THE CHANCES THAT THE PENSION AGENCY WILL BE CALLED UPON TO MAKE GOOD ON PROMISES TO RETIREES ACCORDING TO PEOPLE CLOSE TO THE AGENCY REMOVING THE JUNK BONDS ELIMINATES THE PBGC'S CALL ON THOSE ASSETS IN THE EVENT THE PENSION FUNDS CAN'T MEET THEIR OBLIGATIONS MR ICAHN SAID HE CAN'T COMMENT ABOUT THE COMPANY OR THE REFINANCING BECAUSE THE BOND OFFERING IS STILL IN REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION SEN JOHN R DANFORTH R MO HAS TOLD FORMER ACF INDUSTRIES EXECUTIVES THAT HE IS CONCERNED ABOUT THE FATE OF ACF'S RETIREES THOUSANDS OF WHOM STILL LIVE NEAR THE ST LOUIS PLANTS WHERE THEY WORKED IN 1991 SEN DANFORTH AUTHORED LEGISLATION TO SADDLE MR ICAHN PERSONALLY WITH TWA'S UNFUNDED PENSION LIABILITIES A MEASURE THAT LOST ITS TEETH WHEN MR ICAHN SURRENDERED HIS TWA STAKE IN THE AIRLINE'S BANKRUPTCYCOURT PROCEEDING THIS IS TWA ALL OVER AGAIN SAID DIANE BURKLEY THE FORMER PBGC OFFICIAL WHO NEGOTIATED A SETTLEMENT OF TWA'S PENSION OBLIGATIONS WITH MR ICAHN IN JANUARY WITH THAT ACCORD MR ICAHN HAS AGREED TO HELP MAKE GOOD ON UNDERFUNDING IN TWA'S PENSION PLANS UNDER CERTAIN CIRCUMSTANCES THE PBGC IS JUST FURIOUS ABOUT MR ICAHN'S PROPOSED TRANSACTION SHE SAID THE AGENCY IS TRYING TO DETERMINE HOW ACF INDUSTRIES' UNDERFUNDING AROSE AND PRECISELY HOW LARGE IT IS WE ARE IN THE PROCESS OF DETERMINING THAT NUMBER NOW SAID MS BEKELMAN ONE FORMER PBGC EXECUTIVE SAID THAT ESTIMATES MADE DURING THE TWA NEGOTIATIONS PUT THE ACF GAP BETWEEN 150 MILLION AND 200 MILLION AT LEAST THREE TIMES THE FIGURES MENTIONED IN MR ICAHN'S FILING WITH THE SEC MR ICAHN'S TRANSACTION MAY ALSO HELP SHAPE LEGISLATIVE REFORMS OF PENSION FUNDING EXPECTED IN SEPTEMBER FROM A NEW WASHINGTON TASK FORCE USHERED IN BY LABOR SECRETARY ROBERT REICH IN MARCH THIS DEAL IS AN EXAMPLE OF THE TRANSACTIONS THE TASK FORCE IS LOOKING AT SAID MS BEKELMAN CURRENTLY THE AGENCY CAN TERMINATE UNDERFUNDED PLANS ONLY TO FORESTALL FURTHER BLEEDING AND IT IS ALLOWED TO LOOK BACK ONLY AS FAR AS FIVE YEARS FOR A TRANSACTION DESIGNED TO EVADE THE PENSION LIABILITY THE TASK FORCE ALSO CHAIRED BY THE PBGC'S MR SLATE AND INCLUDING REPRESENTATIVES FROM THE TREASURY COMMERCE AND LABOR DEPARTMENTS WANTS TO PREVENT COMPANIES FROM DUMPING PENSION LIABILITIES ON THE PBGC AS OFTEN HAPPENS WHEN COMPANIES FILE FOR PROTECTION FROM CREDITORS IN BANKRUPTCY COURT ONE REFORM UNDER DISCUSSION THAT MIGHT AFFECT MR ICAHN'S DEAL WOULD CONTINUE THE PENSION LIABILITY FOR COMPANIES THAT DO ANY TRANSACTION THAT LEAVES UNDERFUNDED PLANS BEHIND 9308260108 930826 LEISURE & ARTS MEL GIBSON MINUS THE PRETTY FACE IN DIRECTORIAL DEBUT BY JULIE SALAMON MEL GIBSON IS A FINE ACTOR WHO HAS BECOME A SUPERSTAR BECAUSE OF HIS SUPERMACHO POSTURING IN THE MAD MAX AND LETHAL WEAPON PICTURES HIS INTELLIGENT PERFORMANCES IN THE YEAR OF LIVING DANGEROUSLY AND THE BOUNTY AND MRS SOFFEL DIDN'T MAKE HIM BANKABLE AND CERTAINLY HE CAN'T THANK HIS ESTIMABLE HAMLET FOR MAKING HIM RICH AND FAMOUS SO PERHAPS IT WAS PREDICTABLE THAT MR GIBSON WOULD CHOOSE FOR HIS DEBUT AS A DIRECTOR SOMETHING VERY RESPECTABLE TO SHOW THAT HE HASN'T BEEN CORRUPTED BY FAME AND FORTUNE SOMETHING UPLIFTING SCREENWRITER MALCOLM MACRURY PRESENTED HIM WITH JUST THE THING A SOBER ADAPTATION OF THE MAN WITHOUT A FACE ISABELLE HOLLAND'S NOVEL ABOUT THE FRIENDSHIP BETWEEN A DISAFFECTED YOUNG BOY AND THE DISFIGURED MAN WHO BECOMES HIS TEACHER THE MAN WITHOUT A FACE IS NOTHING IF NOT RESPECTABLE AND OCCASIONALLY IT IS SOMETHING MORE THAN THAT THE PICTURE GETS OFF TO A ROCKY START ESTABLISHING 12YEAROLD CHUCK NORSTADT AS THE MISUNDERSTOOD BROTHER AND SON OF A BUNCH OF FRIVOLOUS AND CRANKY FEMALES THE MOVIE DEPICTS HIS TWO STEPSISTERS AS WHINY HARRIDANS AND HIS MOTHER AS A SMART BUT DIZZY WOMAN A RADCLIFFE GRADUATE IN PERPETUAL SEARCH OF HER NEXT HUSBAND ALL THREE CHILDREN HAVE DIFFERENT FATHERS AS DIRECTOR MR GIBSON DOESN'T GET ACROSS THE FEELING THAT THIS MAY SIMPLY BE CHUCK'S PERCEPTION OF THE SITUATION IN THE EARLY SCENES THE PICTURE'S OBJECTIVE READING OF THE FAMILY DYNAMICS PRESENTED WITHOUT HUMOR STRUCK ME AS UNFAIRLY MEANSPIRITED AND I ADMIT I FOUND IT HARD TO WARM TO LITTLE CHUCK WHO REBELS AGAINST HIS MOTHER'S SMUGLY LIBERAL FRIENDS THE MOVIE TAKES PLACE IN 1968 BY SNUBBING HIS NOSE AT THEIR PACIFISM THERE IS NOTHING I'D RATHER DO THAN DROP NAPALM FOR A LIVING HE ANNOUNCES AT A COCKTAIL PARTY LIKE MANY ASPECTS OF THIS MOVIE HOWEVER THE CRUDE CONSTRUCTION OF SOME OF THE EARLY SCENES ISN'T A DEADLY PORTENT OF THINGS TO COME THOUGH THE STORY HAS A CERTAIN PREDICTABILITY THE FILMMAKERS AND ACTORS INCLUDING MR GIBSON IN THE LEAD BRING TO IT A DISTURBING HUMANITY JUSTIN MCLEOD THE RECLUSIVE TEACHER IS KNOWN AS THE FREAK ON THE ISLAND OFF THE COAST OF MAINE WHERE BOTH HE AND CHUCK'S FAMILY SPEND THE SUMMERS NO ONE KNOWS EXACTLY WHAT HAPPENED TO HIM TO MAKE HIM LOOK HALFREPTILE HALFMAN BUT THERE'S MUCH SPECULATION ABOUT IT MOST OF IT VICIOUS HIS STORY IS REVEALED BIT BY BIT BUT YOU THINK YOU ALREADY KNOW A LOT ABOUT HIM JUST LOOKING AT HIS MANOFLETTERS HOUSE WITH ITS HEAVY FURNISHINGS AND SHELVES FULL OF ANCIENT BOOKS THE MOVIE TURNS OUT TO BE MORE INTERESTING THAN SIMPLY THE CONVENIENT MESHING OF TWO NEEDY SOULS WITH DARK SECRETS IN THEIR PASTS CHUCK IS HAUNTED BY VISIONS OF HIS FATHER WHO DIED MYSTERIOUSLY EVEN THE FEMALE CHARACTERS TURN OUT TO BE MORE COMPLICATED AND SYMPATHETIC THAN THEY SEEM INITIALLY LIKE MANY DIRECTING DEBUTS THIS ONE IS BESET BY A CERTAIN EARNESTNESS STILL MR GIBSON NOT ONLY GIVES A RESTRAINED MOVING PERFORMANCE HIMSELF HE HAS DRAWN STRONG PERFORMANCES FROM THE OTHER ACTORS MOST NOTABLY NICK STAHL AS CHUCK BOTH WHEN HE IS CRANKY AND ANGRY AND WHEN HE SOFTENS LITTLE GABY HOFFMANN WHO PLAYS CHUCK'S SISTER HAS BECOME AN ALARMINGLY POWERFUL SCREEN PRESENCE FOR A 10YEAROLD THIS IS HER FOURTH FILM HER FIRST WAS FIELD OF DREAMS ALSO THOSE WHO CAN'T AFFORD VACATIONS ON IDYLLIC ISLANDS OFF THE NORTHEASTERN COAST CAN ENJOY A GLIMPSE OF WHAT IT MIGHT BE LIKE OR WHAT IT WAS LIKE 25 YEARS AGO THE CINEMATOGRAPHER DONALD M MCALPINE PAINTS A PRETTY PICTURE WHEN I WAS VERY YOUNG I SPENT MANY HOURS OF MY WINTER VACATIONS WATCHING MY GREATUNCLE MARTY ALWAYS CHEWING A CIGAR PLAY CHESS WITH HIS FRIEND WILLY THEY DIDN'T PAY ATTENTION TO ME BUT I PAID ATTENTION TO THEM AND BECAME A PRETTY GOOD PLAYER MYSELF AND MIGHT HAVE BECOME MUCH BETTER BUT WHEN I WAS SIX YEARS OLD AN OLD MAN SITTING ALONE BY A CHESSBOARD IN A HOTEL LOBBY INVITED ME TO PLAY I TOOK HIM UP ON HIS OFFER AND BEAT HIM WHEREUPON INSTEAD OF PRAISING ME LIKE MY MOTHER DID WHEN I BEAT HER HE KNOCKED ALL THE PIECES OFF THE BOARD AFTER THAT I DIDN'T FEEL LIKE PLAYING MUCH I MENTION THIS BIT OF AUTOBIOGRAPHICAL DATA BY WAY OF SAYING THAT I HAD A SPECIAL INTEREST IN SEARCHING FOR BOBBY FISCHER A NEW MOVIE ABOUT A YOUNG CHESS WIZARD AND THE GROWNUPS WHO ENCOURAGE HIM IT'S BASED ON THE BOOK BY FRED WAITZKIN ABOUT HIS SON JOSH WHO IS NOW 15 AND STILL A CHESS WIZARD STEVEN ZAILLIAN DIRECTING FOR THE FIRST TIME IS A RESPECTED SCREENWRITER OF SERIOUS PICTURES AWAKENINGS THE FALCON AND THE SNOWMAN HE ALSO WROTE THIS PICTURE WHICH SUFFERS A LITTLE FROM THE SAME PROBLEM AS MR GIBSON'S A KIND OF EARNESTNESS AND BOTH FILMS ARE OVERSCORED WITH OVERWROUGHT JAMES HORNER MUSIC MR ZAILLIAN MUST HAVE WATCHED A LOT OF EPISODES OF THIRTYSOMETHING WHEN THE YUPPIE DRAMA WAS ON TELEVISION HIS MOVIE IS TOUCHED BY THE SAME KIND OF HUMORLESS INTROSPECTION JOSH'S PARENTS AGONIZE OVER HOW TO APPROACH THEIR SON'S GENIUS THE PARENTS JOE MANTEGNA AND JOAN ALLEN AGONIZE QUITE SYMPATHETICALLY ALSO THE PREACHINESS IS A LITTLE OBVIOUS WE DON'T NEED TO BE TOLD QUITE SO DIRECTLY THAT LITTLE BOYS SHOULD NOT LIVE TO COMPETE ONLY AT CHESS THAT THEY NEED BASEBALL TOO THE MOVIE DOES CAPTURE SOME OF THE INTENSITY AND WEIRDNESS OF THE TOURNAMENTCHESS WORLD AS WELL AS THE MYTHIC INFLUENCE OF BOBBY FISCHER THE ELUSIVE CRACKED CHESS GENIUS ON THAT WORLD MR ZAILLIAN IS MORE ASSURED AS A WRITER THAN AS A DIRECTOR HE JUST MANAGES TO SET UP THE COMPETING PULLS ON JOSH WHO IS TORN BETWEEN THE FORMAL CHESS TEACHER BEN KINGSLEY AND CHESS HUSTLER LAURENCE FISHBURNE MR ZAILLIAN DOESN'T REALLY USE THE ECCENTRICITY AND THE EXCITEMENT OF THE CHESS CROWD THAT GATHERS FAITHFULLY IN REAL LIFE ON THE SOUTHWEST CORNER OF WASHINGTON SQUARE PARK IN GREENWICH VILLAGE WHERE JOSH FIRST PLAYS COMPETITIVELY MR FISHBURNE THIN HIS HEAD SHAVED JOLTS THE PICTURE WITH ACTING ELECTRICITY BUT HIS APPEARANCES ARE BRIEF DESPITE ITS UNEVENNESS SEARCHING FOR BOBBY FISCHER IS AN ENTERTAINING EXCURSION INTO A FASCINATING SUBCULTURE WITH HIS BIG ROUND EYES AND LISP MAX POMERANC MAKES BOTH CUTENESS AND OBSESSIVENESS ENDEARING VIDEO TIP THERE HAVE BEEN A NUMBER OF MOVIES ABOUT YOUNG BOYS AND THEIR TRAUMAS THIS SUMMER I KEEP THINKING WHERE ARE ALL THE LITTLE GIRLS AND THEIR TRAUMAS WHERE'S HAYLEY MILLS WHEN WE NEED HER ON VIDEO I GUESS SHOW YOUR DAUGHTERS HAYLEY'S GREATS POLLYANNA THE PARENT TRAP THE MOONSPINNERS THE TROUBLE WITH ANGELS THE CHALK GARDEN