SYDNEY AUSTRALIA JAMES HARDIE INDUSTRIES LTD A BUILDINGMATERIALS CONCERN SAID IT SOLD ASSETS VALUED AT 12 MILLION AUSTRALIAN DOLLARS US8 MILLION THE ASSETS INCLUDE A 49 STAKE IN UNIVERSITY PATON LTD A MANUFACTURER OF ELECTRICAL AND ELECTRONIC INSTRUMENTS THE BUSINESS OF HARDIE HEALTH CARE PRODUCTS AND SPRINK INC WHICH MANUFACTURES AND DISTRIBUTES WATERSPRINKLER FITTINGS FOR THE US FIRESAFETY MARKET UNIVERSITY PATON WAS SOLD TO A NUMBER OF PARTIES THE HEALTH CARE BUSINESSES JOHNS PLASTIC LABORATORY DISPOSABLES AND FINNWEBB DISPOSABLE SURGICAL WEAR WERE SOLD TO DRAGER AUSTRALIA LTD SPRINK INC WAS SOLD TO CENTRAL SPRINKLER CORP WHICH IS BASED IN LANSDALE PA JAMES HARDIE SAID THE TOTAL SALE PRICE WAS ABOUT EQUAL TO THE BOOK VALUE OF THE ASSETS 9308260106 930826 WHO'S NEWS MGM NAMES AGENT AT CAA TO TOP POST AT PRODUCTION ARM BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD METROGOLDWYNMAYER INC THE AILING STUDIO THAT IS EMBARKING ON A REVIVAL PLAN TAPPED MICHAEL E MARCUS A TOP AGENT FROM CREATIVE ARTISTS AGENCY TO BE PRESIDENT OF MGM PICTURES INC THE ANNOUNCEMENT DREW IMMEDIATE CRITICISM FROM CAA'S ARCHRIVAL INTERNATIONAL CREATIVE MANAGEMENT WHICH HAS BEEN A VOCAL OPPONENT OF CAA'S ROLE AS AN ADVISER TO CREDIT LYONNAIS SA THE FRENCH BANK THAT OWNS 985 OF MGM ICM HAS MAINTAINED THERE IS A CONFLICT OF INTEREST FOR CAA AS A TALENT AGENCY TO ALSO REPRESENT A STUDIO IT HAS FURTHER QUESTIONED WHETHER THE ARRANGEMENT VIOLATES ANTITRUST LAWS OUR POSITION REMAINS UNCHANGED AN ICM SPOKESMAN SAID THE MGM REVIVAL PLAN DESIGNED TO MAKE THE ONCEGRAND STUDIO MORE ATTRACTIVE TO PROSPECTIVE BUYERS IN JUST A FEW YEARS WAS ORCHESTRATED BY CAA CHAIRMAN MICHAEL OVITZ AND ICM INSIDERS SAID THEY DOUBT IT'S A COINCIDENCE THAT A SENIOR CAA OFFICIAL IS GETTING THE TOP JOB AT MGM PICTURES BUT FRANK MANCUSO WHO WAS INSTALLED AS MGM'S NEW CHAIRMAN AND CHIEF EXECUTIVE OFFICER LAST MONTH SAID HE DETERMINED AFTER INTERVIEWING NUMEROUS CANDIDATES THAT MR MARCUS IS BEST SUITED FOR THE JOB HE ISN'T GOING TO HIRE TALENT THAT HE DOESN'T NEED FROM ANY AGENCY MR MANCUSO SAID IMPLYING THAT MR MARCUS ISN'T GOING TO FAVOR CAA TALENT IN SUCH AREAS AS CASTING MOVIES THIS IS A CHOICE OF AN INDIVIDUAL WHO I THINK WILL BEST SERVE MGM AND THAT'S MY ONLY CONCERN MR MANCUSO SAID MR MARCUS 48 YEARS OLD WILL HEAD THE BIGGER OF MGM'S TWO PRODUCTION ARMS THE ONE THAT IS ALREADY UP AND RUNNING ALBEIT IN A HOBBLED STATE AMONG A SERIES OF FLOPS IT HAS RELEASED IN THE PAST FEW YEARS IS THE CURRENT BOMB METEOR MAN JOHN CALLEY A FORMER LONGTIME WARNER BROS EXECUTIVE WAS NAMED EARLIER THIS WEEK TO HEAD MGM'S NEWLY REVIVED UNITED ARTISTS PRODUCTION ARM MGM PICTURES AND UNITED ARTISTS PICTURES WILL RELEASE MOVIES THROUGH A COMMON MARKETING AND DISTRIBUTION OPERATION MR MARCUS JOINED CAA IN 1981 AT THE AGENCY HE CURRENTLY SUPERVISES CAA'S NEW TECHNOLOGY DEPARTMENT AND REPRESENTS MAJOR ACTORS AND DIRECTORS SUCH AS TOM CRUISE SYDNEY POLLACK AND ROBIN WILLIAMS MR MANCUSO DESCRIBED HIM AS A PROBLEM SOLVER WHO HAS A GREAT ABILITY TO RESPOND QUICKLY WE'RE IN A VERY COMPETITIVE ENVIRONMENT HERE AND THAT'S A GREAT ATTRIBUTE 9308260105 930826 US IMPOSES TRADE SANCTIONS AGAINST CHINA PENALTY FOR PAKISTAN SALES DOESN'T APPEAR TO HURT PLANS BY US BUSINESSES A WALL STREET JOURNAL NEWS ROUNDUP THE CLINTON ADMINISTRATION TOOK ITS FIRST STEP TO PUNISH CHINA FOR PEDDLING MISSILE AND OTHER WEAPONS TECHNOLOGY BUT THE LIMITED TRADE SANCTIONS IT ANNOUNCED DIDN'T IMMEDIATELY JEOPARDIZE US BUSINESS PLANS TO CASH IN ON CHINA'S ECONOMIC BOOM ACTING IN RESPONSE TO CHINA'S SALE OF MISSILE TECHNOLOGY TO PAKISTAN THE STATE DEPARTMENT IMPOSED A PACKAGE OF TRADE SANCTIONS THAT MAINLY BLOCK THE TRANSFER OF USMADE EQUIPMENT USED IN SATELLITES THAT THE US EITHER SELLS OR SENDS TO CHINA FOR LAUNCHES THE SANCTIONS COVER ROCKET SYSTEMS AND ROCKET SUBSYSTEMS INCLUDING REENTRY VEHICLES AND SYSTEMS RELATED TO WARHEADS OTHER ITEMS ON THE LIST INCLUDE FLIGHTCONTROL SYSTEMS AVIONICS EQUIPMENT LAUNCHSUPPORT EQUIPMENT SOFTWARE AND CERTAIN COMPUTERS THE SANCTIONS WILL BLOCK ONLY NEW SALES ITEMS FOR WHICH US COMPANIES ALREADY HAVE RECEIVED EXPORT LICENSES CAN STILL BE SHIPPED US OFFICIALS SAID ALTHOUGH BOTH CHINA AND PAKISTAN ARE BEING PENALIZED NEARLY ALL THE SALES AFFECTED ARE TO CHINA US OFFICIALS SAID US OFFICIALS STRESSED THAT THE SANCTIONS WHICH WILL COST US COMPANIES ABOUT 500 MILLION ANNUALLY IN SALES ARE REQUIRED UNDER US LAW AND WERE THE MINIMUM THAT THE ADMINISTRATION COULD HAVE IMPOSED THE SIZE OF THE SANCTIONS THEREFORE ALLAYED THE BUSINESS COMMUNITY'S WORST FEARS BUT THE ACTION ALSO STIRRED WORRIES THAT BOOMING USCHINESE BUSINESS DEALINGS MAY BE INTERRUPTED OR EVEN DERAILED BY WASHINGTON'S VARIOUS QUARRELS WITH BEIJING CHINA REPEATED ITS DENIAL THAT IT SOLD THE WEAPONS TECHNOLOGY TO PAKISTAN THE OFFICIAL XINHUA NEWS AGENCY SAID THE US ALLEGATIONS ABOUT THE SOCALLED MISSILETECHNOLOGY TRANSFERS HAVE BEEN REJECTED BY CHINA AND PAKISTAN IN PAKISTAN A FOREIGN MINISTRY SPOKESMAN SAID HIS COUNTRY HAD PURCHASED SOME MISSILES FROM CHINA BUT NOT THE MISSILE TECHNOLOGY THAT IS AT ISSUE IN THE US SOME BUSINESS LEADERS ACKNOWLEDGED THAT THE PENALTIES WERE THE LEAST THAT WASHINGTON COULD IMPOSE ONCE IT WAS DETERMINED THAT THE ILLEGAL TECHNOLOGY TRANSFER HAD OCCURRED DON ANDERSON PRESIDENT OF THE USCHINA BUSINESS COUNCIL AND A FORMER CHINA SPECIALIST IN THE STATE DEPARTMENT CALLED THE DECISION UNFORTUNATE BUT SAID IT'S NOT GOING TO DERAIL ECONOMIC RELATIONS BETWEEN THE TWO COUNTRIES STILL MR ANDERSON AND OTHERS WORRY THAT COMPETITORS IN OTHER NATIONS MAY RUSH TO FILL THE VOID CREATED BY THE US SANCTIONS THE SANCTIONS WERE REQUIRED BY US LAWS THAT STIPULATE THAT THE STATE DEPARTMENT MUST IMPOSE PENALTIES ONCE THE US HAS DETERMINED THAT AN ARMS TRANSFER HAS TAKEN PLACE IN VIOLATION OF GUIDELINES BECAUSE THE SANCTIONS WEREN'T TRIGGERED BY ANY INTERNATIONAL AGREEMENT AMERICA'S ALLIES AND BUSINESS COMPETITORS SUCH AS BRITAIN FRANCE AND JAPAN HAVE NO LEGAL OBLIGATION TO IMPOSE SIMILAR RESTRICTIONS ON THEIR COMPANIES MR ANDERSON NOTED CHINA WHICH IS A MAJOR SELLER OF WEAPONS COULD BE IN FOR ADDITIONAL PENALTIES FROM THE CLINTON ADMINISTRATION WHICH HAS MADE BLOCKING THE SALE OF DANGEROUS WEAPONS A MAJOR FOREIGNPOLICY PRIORITY US OFFICIALS SUSPECT THAT A SHIP THAT WAS HEADED FOR IRAN CONTAINED CHEMICALWEAPONS COMPONENTS BEIJING HAS AGREED TO AN INSPECTION OF THE VESSEL AT A PORT IN SAUDIA ARABIA AND GARY MILHOLLIN DIRECTOR OF THE WISCONSIN PROJECT ON NUCLEAR ARMS CONTROL SAYS THAT CHINA ALSO MAY BE VIOLATING OR SKIRTING US LAW BY SUPPLYING MISSILE TECHNOLOGY AND MANUFACTURING CAPABILITY TO IRAN AND SYRIA TWO NATIONS THAT THE US LISTS AS SUPPORTERS OF INTERNATIONAL TERRORISM THE US AEROSPACE INDUSTRY WHICH VIEWS CHINA AS A CRUCIAL CUSTOMER IS WORRIED ABOUT THE POTENTIAL IMPACT OF THE SANCTIONS AND THEIR FALLOUT INDUSTRY OFFICIALS ARE ESPECIALLY WORRIED THAT BEIJING WILL RETALIATE BY NOT MAKING PURCHASES FROM THEM IF THAT HAPPENS WE'LL HAVE FIRED A FEW AMERICANS TO SHOW THAT WE'RE INDIGNANT SAID JOEL JOHNSON A VICE PRESIDENT WITH THE AEROSPACE INDUSTRIES ASSOCIATION ROCKWELL INTERNATIONAL CORP HAS DEVELOPED CHINA INTO THE COMPANY'S MOST IMPORTANT SINGLECOUNTRY MARKET FOR GENERAL AVIATION AND AVIONICS OUTSIDE THE US SAYS DAVID SHEPHERD THE SEAL BEACH CALIF COMPANY'S VICE PRESIDENTINTERNATIONAL BUT NOW ROCKWELL FEARS THAT IF THE CHINESE TOOK RETALIATORY MEASURES AND SAID WE'RE NOT GOING TO BUY ANY MORE AIRPLANES FROM AMERICAN CUSTOMERS IT WOULD AFFECT US DRASTICALLY THE FRENCH COMPANY SEXTANT AVIONIQUE SUPPLIER OF AVIONICS TO AIRBUS INDUSTRIE COULD VERY QUICKLY SUPPLANT US IN CHINA MR SHEPHERD SAYS OTHER HIGHTECH CONCERNS ARE WORRIED AS WELL EDWARD SCHMIDT PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ALPHA SOLARCO INC WHICH DERIVES 75 OF ITS TOTAL SALES FROM EXPORTS TO CHINA HAS GRAVE CONCERNS ABOUT THE SANCTIONS ALPHA SOLARCO BASED IN CINCINNATI MAKES SOLARENERGY MANUFACTURING EQUIPMENT AN ALPHA SOLARCOCHINESE JOINT VENTURE IS BUILDING A PLANT IN CHINA TO MAKE HUGE SOLAR ENERGY SYSTEMS FOR USE BY THE CHINESE UTILITIES AS AN ALTERNATIVE TO COAL MR SCHMIDT SAYS THE EQUIPMENT IS QUITE HIGHTECH BUT PROBABLY NOT HIGHTECH ENOUGH TO FALL UNDER THE SANCTIONS NONETHELESS HE WORRIES THAT CHINA WILL RETALIATE AGAINST OTHER US COMPANIES SUCH AS ALPHA SOLARCO THE PROBLEM IS WHAT HAPPENS WHEN THE CHINESE RECIPROCATE AND THEY WILL THEY'RE GOING TO COME BACK AND SAY WE'RE GOING TO IMPOSE A DUTY ON YOUR AMERICAN GOODS' THESE THINGS ARE NEVER FRIENDLY MOSTLY COMPANIES EXPRESSED CAUTION AND RELIEF THAT THE ANNOUNCED SANCTIONS WERE LIMITED HUGHES AIRCRAFT CO RECENTLY LAUNCHED A MAJOR REORGANIZATION OF INTERNATIONAL DIVISIONS MAINLY TO ACCELERATE ITS CHINA EXPANSION THE GENERAL MOTORS CORP UNIT IS HURRIEDLY EXAMINING THE IMPACT ON ITS EFFORTS TO SELL SATELLITES AND RELATED SERVICES AIRTRAFFICCONTROL SYSTEMS WIRELESSTELEPHONE SYSTEMS AND MYRIAD OTHER PRODUCTS THAT COULD BE SEEN AS HAVING DUAL DEFENSE AND COMMERCIAL APPLICATIONS OBVIOUSLY HUGHES HAS A GREAT DEAL OF COMMERCIAL EXPECTATION IN CHINA AND US GOVERNMENT ACTIONS ARE OF CONCERN TO US SAID GARETH CC CHANG CORPORATE SENIOR VICE PRESIDENT OF MARKETING FOR HUGHES AIRCRAFT US EXPORTS TO CHINA TOTALED 73 BILLION LAST YEAR UP 19 FROM THE PREVIOUS YEAR ACCORDING TO THE US COMMERCE DEPARTMENT BUT CHINA WOULD HAVE FAR MORE TO LOSE IF IT GETS INTO A TITFORTAT FIGHT WITH THE US OVER THE SANCTIONS CHINA'S SALES TO THE US CONSISTING MOSTLY OF LOWTECH INEXPENSIVE ITEMS TOTALED ABOUT 25 BILLION LAST YEAR LEAVING THE US WITH AN 18 BILLION TRADE DEFICIT DIRECT INVESTMENT BY US COMPANIES IN CHINA IN 1992 WAS 269 MILLION ACCORDING TO THE COMMERCE DEPARTMENT A FIGURE THAT MAY BE GREATLY UNDERSTATED BECAUSE IT REFLECTS THE FIRST PORT WHICH US MONEY HITS FOR EXAMPLE THE 85 BILLION THAT US COMPANIES HAD DIRECTLY INVESTED IN HONG KONG BY 1992 MAY INCLUDE SUBSTANTIAL INVESTMENT IN CHINA WESTINGHOUSE ELECTRIC CORP EXPORTS POWERGENERATION AND PROCESSCONTROL EQUIPMENT TO CHINA IN ADDITION TO HAVING A TRANSPORTREFRIGERATION EQUIPMENT JOINT VENTURE IN SHENZHEN ACROSS THE CHINESE BORDER FROM HONG KONG AND A BROAD ARRAY OF BUSINESS PROJECTS UNDER DEVELOPMENT WHILE JOHN YASINSKY GROUP PRESIDENT DOESN'T EXPECT THAT CURRENT SANCTIONS WILL HAVE ANY SIGNIFICANT IMPACT ON WESTINGHOUSE THE COMPANY IS VERY ACTIVELY INVOLVED IN TRADE DISCUSSIONS THE KEY SHOULD BE WHETHER OR NOT WE'RE PUNISHING US CORPORATIONS OR EMPLOYEES WHEN YOU IMPLEMENT SANCTIONS THAT DON'T HAVE A LOT OF LEVERAGE HE SAID VICTOR RICE CHAIRMAN AND CHIEF EXECUTIVE OF VARITY CORP WHICH SELLS FARM MACHINERY AND DIESEL ENGINES TO CHINA STRESSES THE IMPORTANCE OF MAINTAINING US COMMERCIAL TIES TO CHINA EVEN IF BEIJING SELLS MISSILES TO PAKISTAN OR PUTS DOWN STUDENT UPRISINGS AS IT DID IN 1989 MR RICE CONSIDERS CHINA A LARGE POTENTIAL MARKET FOR THE BUFFALO NY COMPANY WHICH ALSO MAKES AUTOMOTIVE BRAKE SYSTEMS AND WHEELS IT'S A HUGE OPPORTUNITY HE SAID CHINA HAS THE HIGHEST GROWTH RATE OF GROSS DOMESTIC PRODUCT OF ANY NATION IN THE WORLD RIGHT NOW SAYETT GROUP INC OF PITTSFORD NY IS A MANUFACTURER OF LIQUID CRYSTAL DISPLAY EQUIPMENT WITH ABOUT 10 MILLION IN SALES LAST YEAR SAYETT PLANNED TO EXPAND ITS SMALL OPERATIONS IN CHINA AND SAYS ITS FOREIGN COMPETITORS WILL PROSPER MIGHTILY FROM THE US GOVERNMENT'S OFFTARGET PUNISHMENT HOW CAN WE INVEST SIGNIFICANT DOLLARS INTO CHINA WHEN WE'RE UNSURE IF THE GOVERNMENT IS GOING TO PULL THE PLUG ANY TIME SAID SAYETT'S CHIEF FINANCIAL OFFICER JEFFREY B SPEAR OUR COMPETITION OVERSEAS IS BASICALLY CHEERING 9308260104 930818 YOUR MONEY MATTERS JOBLESS GRADS NEED TO PICK HEALTH PLANS BY STEPHEN FRANK STAFF REPORTER OF THE WALL STREET JOURNAL AS THE LAST DAYS OF A NOTSOCAREFREE SUMMER COME TO A CLOSE RECENT COLLEGE GRADUATES WHO STILL HAVEN'T FOUND A JOB ARE FACING A NEW WORRY MEDICAL INSURANCE FOR MANY MEMBERS OF THE TWENTYSOMETHING GENERATION MEDICAL INSURANCE WAS ALWAYS SOMETHING THAT COULD BE TAKEN FOR GRANTED BUT THE COVERAGE THEY HAD IN COLLEGE OBTAINED EITHER AS DEPENDENTS UNDER THEIR PARENTS' PLANS OR THROUGH A SCHOOLSPONSORED PROGRAM USUALLY EXPIRES A FEW MONTHS AFTER GRADUATION BY AUGUST OR SEPTEMBER MANY JOBLESS GRADUATES ARE LEFT HIGH AND DRY UNEMPLOYED YOUNG MEN AND WOMEN HAVE LONG FORMED A CONSIDERABLE SEGMENT OF THE COUNTRY'S UNINSURED OF COURSE BUT THE SPUTTERING ECONOMY MEANS GROWING NUMBERS OF GRADS ARE TAKING THE RISK OF GOING WITHOUT COVERAGE WHILE THEY LOOK FOR WORK OTHERS ARE GETTING CONTINUING COVERAGE FROM THEIR PARENTS' EMPLOYERSPONSORED PLANS UNDER A FEDERAL LAW KNOWN AS COBRA BUT AT CONSIDERABLE COST BUT THERE ARE SOME ALTERNATIVES TYPICALLY THE CHEAPEST AND MOST CONVENIENT OPTION FOR HEALTHY GRADS WHO ARE CONFIDENT OF THEIR JOB PROSPECTS IS A SHORTTERM POLICY THE PLANS OFFERED BY SUCH COMPANIES AS FORTAS INC'S TIME INSURANCE CO UNIT OF MILWAUKEE AND GOLDEN RULE INSURANCE CO OF INDIANAPOLIS PROVIDE AS MUCH AS SIX MONTHS OF COVERAGE FOR PREMIUMS AS LOW AS 20 A MONTH SHORTTERM PLANS ARE DESIGNED TO BRIDGE THE GAP BETWEEN GRADUATION AND EMPLOYMENT SAYS WAYNE STOLTENBERG SECOND VICE PRESIDENT FOR SPECIALTY PRODUCTS AT TIME ALTHOUGH THE POLICIES DON'T COVER PREEXISTING CONDITIONS THEY ARE EASY TO OBTAIN USUALLY JUST BY FILLING OUT A BRIEF FORM AND SENDING IN A CHECK TIME INSURANCE MARKETS A SHORTTERM POLICY CALLED TEMPOCARE THAT PROVIDES COVERAGE OF AS MUCH AS 2 MILLION DEDUCTIBLES RANGE FROM 250 TO 2500 THOUGH MR STOLTENBERG SAYS 500 IS PROBABLY THE BEST CHOICE FOR YOUNG MEN AND WOMEN WHO ARE FAIRLY FIT POLICYHOLDERS PAY A MONTHLY PREMIUM RANGING FROM 20 TO 100 DEPENDING ON AGE GENDER GEOGRAPHIC AREA AND SIZE OF THE DEDUCTIBLE AFTER MEETING THE DEDUCTIBLE THEY'RE RESPONSIBLE FOR 20 OF THE FIRST 5000 OF CHARGES POLICYHOLDERS WHO ARE STILL OUT OF WORK WHEN THE PLANS EXPIRE MAY REAPPLY FOR ONE ADDITIONAL PERIOD OF COVERAGE BUT ANY CONDITIONS MANIFESTING THEMSELVES IN THE FIRST SIX MONTHS OF COVERAGE ARE USUALLY CONSIDERED PREEXISTING THE SECOND TIME AROUND AND AREN'T COVERED SHORTTERM PLANS ALSO AREN'T ALWAYS COMPREHENSIVE EXPENSES INCURRED OUTSIDE THE US FOR EXAMPLE AREN'T USUALLY COVERED ANOTHER DRAWBACK IS THAT MOST SHORTTERM PLANS REQUIRE BUYERS TO FORK OVER A LUMPSUM PREMIUM FOR THE ENTIRE COVERAGE PERIOD AT THE OUTSET SOME PROVIDERS OFFER A PRORATED REFUND FOR THE UNUSED PORTION IF A POLICYHOLDER FINDS WORK BEFORE THE PLAN EXPIRES FOR GRADS WHO AREN'T AS CONFIDENT OF FINDING WORK QUICKLY STANDARD LONGTERM INDIVIDUAL COVERAGE IS A BETTER BET SAYS HARVIE E RAYMOND DIRECTOR OF INSURANCE PRODUCTS FOR THE HEALTH INSURANCE ASSOCIATION OF AMERICA THE COVERAGE CAN BE CONTINUED INDEFINITELY AND IS TYPICALLY WORLDWIDE BUT INDIVIDUAL COVERAGE IS HARDER TO GET THAN A SHORTTERM POLICY INDIVIDUAL PLANS USUALLY REQUIRE MEDICAL EXAMINATIONS OR EVIDENCE OF INSURABILITY THOUGH IN SOME STATES BLUE CROSSBLUE SHIELD IS REQUIRED BY LAW TO PROVIDE COVERAGE TO THOSE WHO PAY FOR IT THE PREMIUMS ALSO ARE TYPICALLY FAR MORE THAN MOST FINANCIALLY STRAPPED GRADS CAN AFFORD EVEN THE LEAST COSTLY INDIVIDUAL PROGRAMS HAVE MONTHLY PREMIUMS OF BETWEEN 100 AND 200 ACCORDING TO KIM TURNER OF TURNER & ASSOCIATES YPSILANTI MICH INSURANCE AGENCY RATES MAY BE LOWER IN SOME OTHER AREAS GROUP PLANS WHICH ARE FREQUENTLY AVAILABLE THROUGH COLLEGE ALUMNI ASSOCIATIONS OR RELIGIOUS OR SOCIAL ORGANIZATIONS MAY BE A LESSEXPENSIVE OPTION THAN INDIVIDUAL COVERAGE EVEN IF THEY'RE NOT MUCH CHEAPER THAN INDIVIDUAL POLICIES GROUP PLANS OFTEN OFFER MORE OF A BANG FOR YOUR BUCK MS TURNER SAYS PROVIDING A GREATER RANGE OF BENEFITS FOR THE COST ONE OF THE MOST EXPENSIVE WAYS FOR RECENT GRADS TO GET INSURANCE IS TO MAINTAIN COVERAGE UNDER A PARENT'S GROUP PLAN STUDENTS WHO WERE COVERED BY THEIR PARENTS' GROUP PLANS UNTIL GRADUATION ARE PERMITTED BY FEDERAL LAW TO EXTEND THE EXISTING COVERAGE FOR 18 MONTHS AT 102 OF THE PREMIUM TYPICALLY THAT WORKS OUT TO AT LEAST 150 A MONTH ACCORDING TO MR RAYMOND DESPITE THE COST THESE SOCALLED COBRA PLANS MAY BE A GOOD OPTION FOR MANY GRADUATES BECAUSE PREEXISTING CONDITIONS ARE COVERED ONE NOTE ABOUT COBRA THOSE WHO WANT TO TAKE ADVANTAGE OF THIS OPTION MUST ACT QUICKLY THE DEADLINE FOR SIGNING UP IS 45 DAYS FROM THE EXISTING POLICY'S EXPIRATION DATE FOR PEOPLE WITH SERIOUS PREEXISTING CONDITIONS THAT REQUIRE LONGTERM CARE A MORE PERMANENT SOLUTION IS SOMETIMES AVAILABLE IN SOME STATES GRADUATES CAN CONVERT COVERAGE OBTAINED UNDER THEIR EXISTING FAMILY POLICIES INTO INDIVIDUAL POLICIES BUT CONVERSION POLICIES OFTEN PROVIDE FEWER BENEFITS THAN THE ORIGINAL GROUP PLAN AND TYPICALLY COST AS MUCH AS OR MORE THAN A COBRA POLICY THE CONCLUSION EXPERTS SAY BOTH THE COBRA AND CONVERSION PLANS PROVIDE MORE SECURITY AT A HIGHER COST THAN MOST RECENT GRADUATES NEED THEIR ADVICE IF YOU'RE HEALTHY AND PRETTY CONFIDENT YOU'LL FIND A JOB WITHIN THE NEXT SEVERAL MONTHS SIGN UP FOR A SHORTTERM POLICY OTHERWISE LOOK INTO AN INDIVIDUAL PLAN AND TAKE TIME TO COMPARE POLICIES AND PREMIUMS TOO MANY PEOPLE PUT MORE STOCK IN SHOPPING FOR A CAR THAN IN SHOPPING FOR HEALTH INSURANCE SAYS RICHARD COORSH AN HIAA SPOKESMAN WHEN YOU'RE ILL HAVING COVERAGE TO MEET YOUR HEALTHCARE NEEDS IS CONSIDERABLY MORE IMPORTANT THAN GETTING GOOD GAS MILEAGE HE SAYS FORTIS INC IS THE PARENT OF TIME INSURANCE CO IN A YOUR MONEY MATTERS COLUMN AUG 18 ABOUT MEDICAL INSURANCE FOR UNEMPLOYED COLLEGE GRADUATES FORTIS WAS MISSPELLED 9308260103 930826 SHEIK INDICTED IN EXPLOSION AT TRADE CENTER ABDELRAHMAN ALSO FACES CHARGES RELATED TO PLOT AGAINST EGYPTIAN LEADER BY KATIA HETTER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A MUSLIM EGYPTIAN CLERIC WAS INDICTED ON CHARGES OF CONSPIRACY IN CONNECTION WITH THE FEB 26 BOMBING OF THE WORLD TRADE CENTER AND THE PLANNED ASSASSINATION OF EGYPT'S PRESIDENT THE RELIGIOUS LEADER SHEIK OMAR ABDELRAHMAN HAS BEEN IN FEDERAL CUSTODY SINCE EARLY JULY WHEN HE WAS ORDERED DEPORTED BY US IMMIGRATION OFFICIALS THE NEW INDICTMENT HANDED UP BY A FEDERAL GRAND JURY IN NEW YORK MARKS THE FIRST TIME THAT SHEIK ABDELRAHMAN HAS BEEN CRIMINALLY CHARGED IN THE US THE NEW INDICTMENT ALSO BROADENS THE SCOPE OF THE TERRORIST CONSPIRACY ALLEGATIONS MADE IN JUNE REGARDING PLANS TO BOMB THE UNITED NATIONS BUILDING AND OTHER NEW YORK LANDMARKS THE LATEST INDICTMENT ACCUSES SHEIK ABDELRAHMAN OF PARTICIPATING IN THAT ALLEGED CONSPIRACY ALONG WITH SEVERAL OF HIS RELIGIOUS FOLLOWERS THE NEW CHARGES ALLEGE THAT 11 MEN PREVIOUSLY CHARGED IN THE PLANNED UN BOMBING ALSO WERE INVOLVED IN THE WORLD TRADE CENTER EXPLOSION THE INDICTMENT ACCUSES THE DEFENDANTS OF CONSPIRING TO LEVY A WAR OF URBAN TERRORISM AGAINST THE US ANOTHER NEW DEFENDANT ADDED TO THE UN BOMBING CASE IS EL SAYYID NOSAIR WHO WAS ACQUITTED IN A NEW YORK STATE COURT IN THE 1990 MURDER OF A MILITANT RABBI MEIR KAHANE BUT CONVICTED AND JAILED ON A WEAPONS CHARGE UNDER THE NEW INDICTMENT PROSECUTORS ALSO ARE PURSUING FEDERAL RACKETEERING CHARGES AGAINST MR NOSAIR IN THE KAHANE KILLING THE OTHER THREE DEFENDANTS ACCUSED OF CONSPIRING WITH SHEIK ABDELRAHMAN TO MURDER PRESIDENT HOSNI MUBARAK OF EGYPT ARE SIDDIG IBRAHIM SIDDIG ALI MOHAMMED ABOUHALIMA AND ABDO MOHAMMED HAGGAG SHEIK ABDELRAHMAN WHO PREACHED AT MOSQUES IN NEW JERSEY AND NEW YORK HAS OPPOSED EGYPT'S SECULAR GOVERNMENT THE INDICTMENT ALLEGED THAT AROUND LATE NOVEMBER OR DECEMBER THE SHEIK ASKED A PERSON KNOWN TO THE GRAND JURY TO MURDER PRESIDENT MUBARAK THAT PERSON WASN'T IDENTIFIED BY PROSECUTORS THE NEW CONSPIRACY CHARGES ALSO ALLEGE THAT SOME OF THE DEFENDANTS DISCUSSED PLANS TO ASSASSINATE A NEW YORK STATE ASSEMBLYMAN TO KILL FEDERAL BUREAU OF INVESTIGATION AGENTS TO KIDNAP HOSTAGES TO TRADE FOR DEFENDANTS IN THE WORLD TRADE CENTER CASE AND TO BOMB THE EGYPTIAN PRESIDENTIAL PALACE AND AN AMERICAN EMBASSY THE DECISION TO PROSECUTE THE SHEIK IN THE BOMBING CASES WAS MADE AT A MONDAY MEETING IN WASHINGTON THAT INCLUDED ATTORNEY GENERAL JANET RENO NEW YORK US ATTORNEY MARY JO WHITE AND SEVERAL OTHER JUSTICE DEPARTMENT OFFICIALS MS RENO APPROVED MS WHITE'S RECOMMENDATION TO PROCEED AGAINST THE SHEIK ATTORNEY BARBARA NELSON WHO HAS REPRESENTED SHEIK ABDELRAHMAN IN THE IMMIGRATION PROCEEDINGS DECLINED TO COMMENT ON THE INDICTMENT SAYING SHE ISN'T A CRIMINAL DEFENSE ATTORNEY AND HASN'T READ THE INDICTMENT SHE PREVIOUSLY HAS SAID THE SHEIK WASN'T AWARE OF EITHER BOMBING PLOT THE EXPANDED INDICTMENT IS SEPARATE FROM THE WORLD TRADE CENTER CASE SET TO GO TO TRIAL NEXT MONTH IN FEDERAL COURT IN NEW YORK MATTHEW FISHBEIN CHIEF ASSISTANT US ATTORNEY SAID THIS CASE CHARGES A BROADER CONSPIRACY IN WHICH THE WORLD TRADE CENTER BOMBING IS ONE OF A NUMBER OF ACTS OF TERRORISM PLANNED BY THE DEFENDANTS RONALD L KUBY AN ATTORNEY FOR SOME OF THE DEFENDANTS SAID WHAT PROSECUTORS ARE TRYING TO DO IS CREATE A CONSPIRACY SO VAST SO DANGEROUS AND SO INCOMPREHENSIBLE NO JUROR IS ACTUALLY GOING TO LOOK AT THE EVIDENCE MR KUBY WHOSE CLIENTS INCLUDE MR NOSAIR SAID THE NEW CHARGES AGAINST MR NOSAIR INVOLVING THE MURDER OF RABBI KAHANE ARE AN OUTRAGEOUS ATTEMPT BY THE US GOVERNMENT TO PROSECUTE EL SAYYID NOSAIR FOR AN OFFENSE FOR WHICH HE HAS ALREADY BEEN FOUND NOT GUILTY ALL THE DEFENDANTS IN THE WORLD TRADE CENTER CASE PLEADED NOT GUILTY AS DID THE DEFENDANTS PREVIOUSLY NAMED IN THE UN BOMBING CASE THE SHEIK AND THE OTHER DEFENDANTS NAMED IN THE NEW INDICTMENT ARE EXPECTED TO BE ARRAIGNED IN FEDERAL COURT TODAY SECURITY AROUND THE US FEDERAL COURTHOUSE IN MANHATTAN WHERE THE CASES ARE PENDING WAS TIGHTENED YESTERDAY BEFORE THE RELEASE OF THE INDICTMENT BARRICADES WERE PLACED AROUND THE COURT ENTRANCES AND DOZENS OF POLICE PATROLLED THE SURROUNDING STREETS IF CONVICTED ON THE CONSPIRACY COUNT EACH DEFENDANT COULD FACE A MAXIMUM SENTENCE OF 20 YEARS IN PRISON AND A FINE OF 250000 THE CONSPIRACY TO MURDER CHARGE STEMMING FROM THE ALLEGED PLOT AGAINST PRESIDENT MUBARAK CARRIES A MAXIMUM SENTENCE OF LIFE IN PRISON JOE DAVIDSON IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9308260102 930826 TECHNOLOGY EDO UNIT WINS MOTOROLA JOB SHELTON CONN EDO CORP SAID ITS BARNES ENGINEERING UNIT WAS CHOSEN AS A SUBCONTRACTOR ON MOTOROLA INC'S MOTOROLA IRIDIUM PROGRAM WITH THE CONTRACT VALUE EXPECTED TO EXCEED 15 MILLION THE IRIDIUM PROGRAM WILL PROVIDE WORLDWIDE WIRELESS PERSONAL COMMUNICATIONS SERVICES FOR EQUIPMENT SUCH AS CELLULAR PHONES VIA A SATELLITE SYSTEM EDO SAID IT IS WORKING WITH LOCKHEED CORP WHICH IS BUILDING THE CORE SATELLITES TO SUPPLY EARTH HORIZON SENSORS FOR THE SPACECRAFT EDO MAKES ELECTRONIC ACOUSTIC AERODYNAMIC AND HYDRODYNAMIC EQUIPMENT FOR MILITARY AND COMMERCIAL APPLICATIONS 9308260101 930826 INTERNATIONAL TOYOTA MOTOR'S PRETAX PROFIT FELL 25 IN YEAR BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO TOYOTA MOTOR CORP HURT BY SLOW AUTO SALES AND THE STRONG YEN SAID ITS ANNUAL GROUP PRETAX PROFIT DROPPED 25 FROM THE PREVIOUS YEAR BUT ANALYSTS SAID THE COMPANY AVOIDED A POTENTIALLY BIGGER DECLINE BY AGGRESSIVELY CUTTING COSTS JAPAN'S LARGEST AUTO MAKER SAID ITS GROUP PRETAX PROFIT FELL TO 32221 BILLION YEN 311 BILLION FROM 42786 BILLION YEN IN THE YEAR ENDED JUNE 30 NET INCOME FELL 26 TO 17646 BILLION YEN FROM 23784 BILLION YEN GROUP SALES MEANWHILE EDGED UP 05 TO 1021 TRILLION YEN FROM 1016 TRILLION YEN TOYOTA BLAMED MUCH OF THE DROP IN PROFITS ON THE YEN'S SHARP RISE AGAINST OTHER CURRENCIES WHEN THE YEN RISES VEHICLES SOLD OVERSEAS BRING IN LESS REVENUE IN YEN LOSSES FROM CURRENCY FLUCTUATIONS REDUCED TOYOTA'S PARENTCOMPANY OPERATING PROFIT BY A HUGE 120 BILLION YEN TOYOTA OFFICIALS SAID JAPAN'S SEVERE ECONOMIC SLUMP AND RISING PERSONNEL COSTS ALSO BROUGHT DOWN TOYOTA'S PROFIT IN JAPAN TOYOTA'S BIGGEST MARKET THE COMPANY'S SALES OF CARS AND TRUCKS FELL 74 TO 2160000 VEHICLES OVERALL TOYOTA'S SALES DROPPED 10 TO 4470000 UNITS ON A PARENTCOMPANY BASIS TOYOTA'S PRETAX PROFIT DROPPED 24 TO 28645 BILLION YEN IN THE LATEST YEAR PARENT COMPANY SALES ROSE 10 TO 903 TRILLION YEN ANALYSTS SAID THE FIGURES WERE IN LINE WITH THEIR EXPECTATIONS THEY NOTED THAT TOYOTA'S PROFIT SKID COULD HAVE BEEN MUCH WORSE IF THE COMPANY HADN'T BEEN ABLE TO CUT EXPENSES BY FOR EXAMPLE REDUCING THE COST OF PARTS THESE MEASURES ARE PROBABLY WHY IT WAS ABLE TO KEEP THE DROP AT THIS LEVEL SAID CHIKAO MASUZAWA AN ANALYST AT SALOMON BROTHERS ASIA LTD DESPITE THE COSTCUTTING ANALYSTS SAID TOYOTA'S EARNINGS ARE LIKELY TO FALL AGAIN IN THE CURRENT YEAR THE YEN HAS GROWN EVEN STRONGER IN THE PAST FEW MONTHS WHAT'S MORE THE AUTO MAKER ISN'T EXPECTED TO INTRODUCE ANY MAJOR NEW VEHICLES IN THE NEXT 12 MONTHS UNLIKE ITS RIVAL HONDA MOTOR CO FOR THE YEAR ENDING NEXT JUNE 30 TOYOTA ESTIMATED PARENT PRETAX PROFIT WILL DROP 30 TO 200 BILLION YEN ON A SALES DECLINE OF 37 TO 87 TRILLION YEN TOYOTA DIDN'T FORECAST ITS GROUP RESULTS 9308260100 930826 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG YOU'RE NOT SUPPOSED TO KICK A GUY WHEN HE'S DOWN SO I SUPPOSE SOME WILL THINK ME RUDE FOR NOTING IN THE MIDST OF APPLE COMPUTER'S CURRENT FINANCIAL TROUBLES THAT ITS STRONGEST ASSET THE FABLED FRIENDLY USER INTERFACE OF THE MACINTOSH COMPUTER IS GETTING LONG IN THE TOOTH AND NEEDS IMPROVING WHAT'S MORE APPLE'S GREATEST IMITATOR AND NEMESIS MICROSOFT'S MACLIKE WINDOWS SOFTWARE SYSTEM FOR IBMCOMPATIBLE COMPUTERS IS SUPERIOR IN CERTAIN WAYS TO THE DECADEOLD MACINTOSH INTERFACE THE BASIC SCREEN DISPLAY A COMPUTER PRESENTS TO THE USER AND THROUGH WHICH THE COMPUTER IS CONTROLLED LET ME HASTEN TO ADD TO CUT DOWN JUST A BIT ON IRATE LETTERS FROM MAC FANATICS THAT OVERALL THE MAC INTERFACE STILL HAS THE EDGE IT LETS USERS NAME FILES WITH REAL ENGLISH WORDS PROVIDES AUTOMATIC LINKAGE OF DOCUMENTS AND THE PROGRAMS THAT CREATED THEM UNIFIES THE MANAGING OF FILES AND THE LAUNCHING OF PROGRAMS AND DOES OTHER THINGS WINDOWS CAN'T DO AND WHEN THE MAC SOFTWARE IS COMBINED WITH ITS ELEGANTLY DESIGNED HARDWARE THE RESULT IS A COMPUTER THAT IS EASIER TO SET UP NETWORK AND EXPAND THAN ANY MACHINE I'VE SEEN THAT RUNS WINDOWS THAT'S WHY I USE A MAC DAILY IN ADDITION TO AN IBMCOMPATIBLE BUT THAT EDGE HAS ERODED WITH EACH NEW VERSION OF WINDOWS AND COULD DISAPPEAR ENTIRELY IF MICROSOFT PULLS OFF ITS AMBITIOUS PLAN TO REVAMP THE WINDOWS INTERFACE AND PC HARDWARE BY NEXT YEAR WHILE APPLE CONTINUES TO NEGLECT ITS CROWN JEWEL ALREADY IN A NUMBER OF SMALL WAYS SIMPLE THINGS THAT AFFECT THE USER'S DAILY RELATIONSHIP WITH THE COMPUTER WINDOWS IS BETTER HERE ARE SOME THINGS APPLE COULD LEARN FROM MICROSOFT USING MENUS ON A MAC WHEN YOU CLICK WITH THE MOUSE ON THE TITLE OF A MENU THE COMMANDS LISTED THERE REMAIN VISIBLE ONLY WHILE YOU CONTINUE HOLDING DOWN THE MOUSE BUTTON YOU HAVE TO ACT QUICKLY AND WITH SOME DEXTERITY TO SCROLL DOWN THE LIST AND SELECT AN ITEM IN WINDOWS THE MENUS STAY DOWN UNTIL YOU DISMISS THEM ALLOWING AMPLE TIME TO SCROLL THROUGH CHOICES KEYBOARD EQUIVALENTS THE MAC LACKS A WAY TO CAUSE MENUS TO DROP DOWN BY TYPING COMMANDS FROM THE KEYBOARD IN WINDOWS EVERY MENU TITLE HAS AN UNDERLINED LETTER THAT WHEN PRESSED IN CONJUNCTION WITH THE ALT KEY GIVES YOU ACCESS TO THE MENU WITHOUT REMOVING YOUR HANDS FROM THE KEYBOARD THIS IS A BOON FOR TOUCH TYPISTS AND PEOPLE USING PORTABLE COMPUTERS IN TIGHT SPACES MANAGING SCREEN CLUTTER ON A MAC THE SCREEN CAN QUICKLY BECOME LITTERED WITH MULTIPLE OPEN WINDOWS IF YOU HAVE SEVERAL PROGRAMS RUNNING SIMULTANEOUSLY YOU CAN HIDE THE ONES THAT YOU AREN'T USING BUT THAT MAKES IT HARD TO TELL WHAT'S GOING ON AND TO CLICK ON ONE OF THEM TO BRING IT TO THE FRONT MICROSOFT LETS YOU CLEAN UP THE SCREEN BY MINIMIZING RUNNING PROGRAMS SO THEY APPEAR ONLY AS LITTLE ICONS OR GRAPHIC SYMBOLS BUILTIN APPLICATIONS APPLE PIONEERED THE IDEA OF SUPPLYING SMALL PROGRAMS LIKE A CALCULATOR OR SMALL SCRATCHPAD THAT CAN POP UP ON TOP OF THE WORK YOU'RE DOING BUT WINDOWS COMES WITH A MUCH BETTER SUITE OF THESE APPLETS INCLUDING RUDIMENTARY VERSIONS OF AN APPOINTMENT CALENDAR AN ADDRESS BOOK A COMMUNICATIONS PROGRAM A WORD PROCESSOR A PAINTING PROGRAM AND A SOLITAIRE GAME PERSONALIZING THE COMPUTER THE MAC LETS YOU MAKE LIMITED CHANGES IN SUCH ELEMENTS AS THE COLOR AND PATTERN OF THE SCREEN BACKGROUND OR THE SOUND THE COMPUTER MAKES WHEN IT BEEPS AT YOU BUT IN WINDOWS THERE IS A MUCH RICHER ARRAY OF COLORFUL CUSTOMIZATION OPTIONS INCLUDING BUILTIN SCREEN SAVERS TO LET USERS PUT THEIR OWN STAMP ON THEIR ELECTRONIC DESKTOPS ONLINE HELP THE ONLY STANDARD HELP SYSTEM ON THE MAC IS AN ANNOYING FEATURE THAT PLANTS CARTOONLIKE BALLOONS ALL OVER THE SCREEN TO TELL YOU WHAT VARIOUS THINGS DO EACH PROGRAM YOU BUY HAS ITS OWN INCONSISTENT HELP SYSTEM WINDOWS COMES WITH A CONSISTENT ROBUST HELP SYSTEM THAT MOST PROGRAMS SHARE THE MOUSE ON A STANDARD MAC THE MOUSE HAS ONLY ONE BUTTON AND YOU CAN MODIFY ONLY A COUPLE OF ASPECTS OF ITS PERFORMANCE SPEED AND SENSITIVITY MICROSOFT LETS WINDOWS USERS CUSTOMIZE SUCH THINGS AS THE SIZE AND COLOR OF THE CURSOR AND THE SECOND BUTTON IS USED IN MANY WINDOWS PROGRAMS AS A SHORTCUT DEVICE TO SUMMON A SPECIAL MENU OF OPTIONS FOR INSTANCE PRINTER SELECTION ON A MAC YOU HAVE TO OPEN A SEPARATE LITTLE PROGRAM CALLED THE CHOOSER TO SWITCH THE SOFTWARE SETTINGS FROM ONE PRINTER TO ANOTHER IN WINDOWS YOU CAN GET TO THAT FUNCTION FROM THE STANDARD PRINT COMMAND IN MANY PROGRAMS TASK SWITCHING ON A MAC YOU MUST USE THE MOUSE TO SWITCH AMONG SEVERAL RUNNING PROGRAMS IN WINDOWS YOU CAN DO THIS FASTER BY JUST HITTING THE ALT AND TAB KEYS TOGETHER OR YOU CAN POP UP A MENU OF THE PROGRAMS BY PRESSING THE CONTROL AND ESCAPE KEYS MOST OF THESE WINDOWS FEATURES CAN BE ADDED TO A MACINTOSH BY OBTAINING EXTRA SOFTWARE AND SOME ARE DEEMED BY MAC PURISTS AS UNACCEPTABLE DEVIATIONS FROM THE USER INTERFACE CONVENTIONS ESPOUSED BY APPLE SINCE 1984 GUIDELINES THAT HAVE TAKEN ON THE RIGID RELIGIOUS AUTHORITY OF PAPAL ENCYCLICALS OR TALMUDIC RULINGS IN SOME QUARTERS BUT APPLE ENGINEERS HAVE BEGUN TO RETHINK THE MAC'S USER INTERFACE IF THAT EFFORT IS TO SUCCEED THEY CAN'T INDULGE IN THE KIND OF NOTINVENTEDHERE MENTALITY THAT IS THE LUXURY OF THEOLOGIANS NOT BUSINESS PEOPLE 9308260099 930825 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9308260098 930826 REVIEW & OUTLOOK EDITORIAL NICARAGUA'S TORN SOUL WE WERE ON THE PHONE TO NICARAGUA LAST WEEKEND TRYING TO ASSESS THE DAMAGE OF A KIDNAPPING AND HOSTAGE DUEL BETWEEN FORMER CONTRA REBELS IN THE NORTH OF THE COUNTRY AND SANDINISTA LOYALISTS IN MANAGUA OUR PHONE SOURCE WAS AN EXILE WHO RETURNED TO WORK FOR THE GOVERNMENT IN NICARAGUA AFTER THE SANDINISTAS' 1990 ELECTORAL DEFEAT THIS BRIGHT YOUNG STAR IN THE ADMINISTRATION OF PRESIDENT VIOLETA CHAMORRO CONFIDED THAT TOLERANCE FOR THE CORRUPTION AND VIOLENCE IN THE COUNTRY HAD REACHED A BREAKING POINT I'VE HAD IT THIS BRIGHT YOUNG PERSON TOLD US I'M LEAVING THERE'S NOTHING DECENT LEFT IN THIS COUNTRY WHAT WE ARE WITNESSING IN NICARAGUA IS THE FINAL STRIPPING OF A COUNTRY'S SOUL TEN YEARS OF CORRUPT NEOMARXIST RULE AND THREE YEARS OF CORRUPT NEOMERCANTILIST RULE HAVE LED TO COMPLETE DISILLUSIONMENT AMONG THE POPULATION HOPES FOR REAL GROWTH AND DEVELOPMENT WERE HIGH FOLLOWING THE 1990 ELECTION IN WHICH THE SANDINISTAS WERE OVERWHELMINGLY DEFEATED BUT THE PEOPLE'S WISHES WERE UNDERMINED BY A SANDINISTA ARMY THAT RETAINED POWER BY A SANDINISTA BUREAUCRACY THAT RETAINED MUCH OF THE COUNTRY'S WEALTH AND BY INEPT US POLICY MAKERS WHO SAT BACK AND ALLOWED CLOSE TO ONE BILLION DOLLARS IN US GRANTS AND LOANS TO BE POURED INTO THIS SOUP THE LESSONS OF THIS DEBACLE ARE PARTICULARLY RELEVANT AS WE DEBATE WAYS OF AIDING COUNTRIES IN THE FORMER SOVIET EMPIRE WHICH MAY SOON INCLUDE NEARBY CUBA FOR STARTERS IT'S OBVIOUS THAT GIVING THE SANDINISTAS A PIECE OF THE GOVERNMENT AFTER THEIR DEFEAT IN FREE ELECTIONS WAS A MISTAKE THE RECENT EXPLOSION OF A BUILDING HARBORING A HUGE ARMS CACHE AND TERRORIST DOCUMENTS CONFIRMS THE SANDINISTAS' LINKS TO OTHER TERRORISTS IN THE GLOBAL KIDNAPPING AND EXTORTION BUSINESS BUT IN THE AFTERMATH OF IRANCONTRA AND MANY RUINED WASHINGTON CAREERS THERE CLEARLY WAS LITTLE STOMACH AMONG US POLICY MAKERS TO RISK INFLAMING THE BELTWAY LIBERALS WHO SPENT YEARS TRYING TO DEFUND THE CONTRAS AND STOP THE REAGAN ADMINISTRATION'S EFFORTS TO OPPOSE THE SANDINISTAS SO THUGS LIKE HUMBERTO ORTEGA WERE LEFT IN CHARGE OF THE GOVERNMENT'S BULLETS COMPOUNDING THIS ERROR THE US CRANKED UP THE AID MACHINE WITH THE USUAL RESULTS NICARAGUA DEMONSTRATES THAT DIRECT AID HAS OFTEN BEEN A DESTRUCTIVE INFLUENCE IN DEVELOPING NATIONS ENCOURAGING GRAFT AND DISCOURAGING SELFRELIANCE WHAT IS CRITICALLY IMPORTANT FOR THESE COUNTRIES IS THAT THEY BE PROVIDED WITH INCENTIVES TO PRODUCE WHICH THE US CAN ENCOURAGE BY FURTHER OPENING OUR BORDERS TO THEIR GOODS IRONICALLY TRADE NOT AID BECAME THE CALL WORDS OF THE BUSH ADMINISTRATION AND BECAME THE BASIS FOR NAFTA AND THE AMERICAS INITIATIVE ALAS THAT SAME ADMINISTRATION OPENED THE HONEY POT IN NICARAGUA POURING HUNDREDS OF MILLIONS OF DOLLARS INTO THE COFFERS OF A LARGELY SANDINISTA BUREAUCRACY THUS BEGAN A DESTRUCTIVE CHAIN REACTION OF SANDINISTA LOAN OFFICERS AND OTHER BUREAUCRATS MAKING BAD LOANS TO THEIR CRONIES DRAINING THE RESOURCES OF THE CENTRAL BANK WHICH IN TURN WERE REPLENISHED WITH US BALANCE OF PAYMENTS SUPPORTS NEVERTHELESSTHE USAID ADMINISTRATOR IN MANAGUA JANET BALLANTYNE STILL INSISTS THAT NOT A DIME OF US MONEY HAS BEEN MISSPENT EACH TIME SOMEONE SAYS THAT FUNDS HAVE BEEN MISUSED OR MISDIRECTED SAYS MS BALLANTYNE I WOULD LIKE TO INVITE THEM TO SEE OUR COMPUTER SYSTEM THE MOST MODERN ONE IN THE WORLD WE KNOW HOW EVERY DOLLAR WAS SPENT LAST MONTH THE US SENATE VOTED TO HALT AID TO NICARAGUA LARGELY BECAUSE OF THE DISCOVERY OF CONTINUING SANDINISTA ASSISTANCE TO INTERNATIONAL TERRORISTS STILL THE MAIN PROBLEM THE SANDINISTAS REMAINS PRESIDENT VIOLETA CHAMORRO SUGGESTED YESTERDAY THAT PERHAPS HUMBERTO ORTEGA WOULD BE DUMPED AND THE ORGANIZATION OF AMERICAN STATES IS CHIRPING ABOUT A ROLE PERHAPS AT THIS LATE STAGE ALL THOSE GRIEVING FOR THE DISASTER VISITED UPON NICARAGUA'S PEOPLE COULD COMBINE THEIR RESOURCES TO PENSION OFF THE SANDINISTA LEADERSHIP TO SOME MORE CONGENIAL VENUE SAY BAGHDAD 9308260097 930826 MARKETING & MEDIA CBS EASES STAND IN BATTLE ON FEES WITH CABLE FIRMS BY DENNIS KNEALE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CBS INC THE LAST HOLDOUT AMONG THE MAJOR BROADCAST NETWORKS HAS APPARENTLY SURRENDERED IN ITS UPHILL STRUGGLE TO FORCE MAJOR CABLE OPERATORS TO PAY NEW FEES FOR AIRING THE PROGRAMMING OF CBSOWNED TELEVISION STATIONS CBS IS BELIEVED TO HAVE AGREED TO FORGO CASH PAYMENTS THAT ARE ALLOWED UNDER RETRANSMISSION CONSENT A MAJOR PROVISION OF THE NEW CABLE LAW THAT CBS OFFICIALS HAD PUSHED HARD FOR IN WASHINGTON IN FAVOR OF SIGNIFICANTLY SMALLER FEES FOR A NEW CBS CABLE CHANNEL THAT CONCESSION CAME DESPITE CBS'S OWN CRITICISM OF NETWORK RIVALS NBC ABC AND FOX FOR MAKING SIMILAR DEALS IT UNDERSCORES THE CONTINUED CLOUT OF THE NATION'S LARGEST CABLE OPERATORS DESPITE THE BROADCASTFRIENDLY SHIFT IN THE BALANCE OF POWER THAT WAS FIRST SEEN AS A RESULT OF THE NEW CABLE REREGULATION ACT IN ADDITION CBS'S PLAN FOR A CABLE OUTLET CARRYING PROGRAMMING PROVIDED BY CBS NEWS WOULD MARK AN ABRUPT REVERSAL IN STRATEGY FOR THE NETWORK WHILE RIVALS HAVE WADED INTO THE CABLE BUSINESS IN TACIT RECOGNITION OF ITS RISING FORTUNES CBS CHAIRMAN LAURENCE TISCH HAS STEADFASTLY REFUSED TO DIVERSIFY HE HAS SAID GETTING INTO CABLE WOULD DIVERT CBS'S FOCUS AND MERELY GIVE HIS EXECUTIVES A NEW TOY TO PLAY WITH CBS IS EXPECTED TO ANNOUNCE NEW AGREEMENTS WITH CABLE OPERATORS INCLUDING COMCAST CORP LAST WEEK A SENIOR EXECUTIVE AT THE NATION'S LARGEST CABLE OPERATOR TELECOMMUNICATIONS INC HINTED THAT CBS WAS INDEED DISCUSSING NONCASH APPROACHES TO THE RETRANSMISSION CONSENT RULE DESPITE THE COMPANY'S REPEATED PUBLIC CRITICISMS OF SUCH EFFORTS VIRTUALLY ALL OF THE NATION'S 10 LARGEST CABLE OPERATORS WHICH CONTROL CLOSE TO HALF OF THE NATION'S 60 MILLION CABLE HOMES HAVE STEADFASTLY REFUSED TO PAY ANY CASH FEES AS ALLOWED UNDER THE NEW CABLE LAW WHICH TAKES EFFECT NEXT WEEK THE LOCKSTEP REFUSAL HAS BROUGHT THE SCRUTINY OF US SEN DANIEL INOUYE WHO HEADS A SUBCOMMITTEE THAT OVERSEES THE CABLE INDUSTRY HE RECENTLY ASKED THE JUSTICE DEPARTMENT AND FEDERAL TRADE COMMISSION TO LOOK INTO WHETHER THE PARALLEL STANCE TAKEN BY BIG CABLE OPERATORS IS MERELY COINCIDENCE OR THE RESULT OF IMPROPER COLLUSION ALTHOUGH CABLE SYSTEMS HAVE ALWAYS PAID FOR SUCH CHANNELS AS CNN AND MTV THEY HAD ALWAYS BEEN ABLE TO RETRANSMIT THE PROGRAMMING OF BROADCAST STATIONS FREE OF CHARGE EVEN THOUGH BROADCAST FARE TYPICALLY ATTRACTED THE BIGGEST SHARE OF CABLE VIEWERS THE NEW CABLE LAW PASSED OVER THE VEHEMENT OPPOSITION OF THE CABLE INDUSTRY AND A PRESIDENTIAL VETO LAST YEAR GAVE STATIONS THE RIGHT TO NEGOTIATE FOR PROGRAMMING FEES FOR THE FIRST TIME BUT NONE OF THE MAJOR STATION GROUPS OWNED BY THE FOUR BROADCAST NETWORKS HAS BEEN ABLE TO SIGN A PACT FOR CASH PAYMENTS FROM CABLE COMPANIES INSTEAD CABLE OPERATORS HAVE AGREED TO PAY THE NETWORK COMPANIES FOR NEW CABLE CHANNELS A METHOD THAT SOME BROADCAST EXECUTIVES HAVE LIKENED TO MAKING SECRET CASH PAYMENTS IN A BRIEFCASE TO HIDE THE REALITY THAT CABLE WAS IN ACTUALITY PAYING TO BROADCAST TV STATIONS' PROGRAMMING GENERAL ELECTRIC CO'S NBC UNIT LAST WEEK SIGNED A PACT WITH SEVERAL MAJOR OPERATORS CALLING FOR THE CREATION OF AN ALLTALKSHOW CABLE CHANNEL FOR WHICH CABLE SYSTEMS WILL PAY NBC IN EXCHANGE NBC'S GROUP OF SEVEN OWNED STATIONS WON'T CHARGE ANY FEES OF THEIR OWN CAPITAL CITIES/ABC INC HAS LIKEWISE SIGNED A RAFT OF OPERATORS WINNING FEES FOR A SPINOFF OF THE ESPN SPORTS CHANNEL BUT NO PROGRAMMING FEES FOR ITS OWN GROUP OF TV STATIONS AND NEWS CORP'S FOX NETWORK HAS MADE THE MOST SWEEPING DEAL GETTING TELECOMMUNICATIONS TO PAY SURPRISINGLY GENEROUS FEES OF ABOUT 25 CENTS PER HOUSEHOLD EACH MONTH FOR A NEW FOX CABLE CHANNEL IN THAT CASE OTHER FOX AFFILIATES THAT WANT TO PARTICIPATE CAN RECEIVE ABOUT A NICKEL PER HOUSEHOLD ALTHOUGH THAT PAYMENT TECHNICALLY WILL COME FROM FOX RATHER THAN FROM CABLE FIRMS BUT ONLY CBS HAD HELD OUT CRITICIZING SUCH ARRANGEMENTS AS UNDERCUTTING THE REAL INTENT OF THE RETRANSMISSION CONSENT RULE THE PROVISION WAS DESIGNED TO HELP BROADCAST STATIONS WHICH HAVE LOST AUDIENCE AND ADVERTISING TO CABLE SYSTEMS OVER THE YEARS RATHER THAN HELP BROADCASTERS GET INTO THE CABLE BUSINESS 9308260096 930826 TECHNOLOGY BRIEF INTEL CORP CHIP MAKER PACIFIC BELL TEAM UP ON PC APPLICATIONS INTEL CORP SAID IT HAS SIGNED AN AGREEMENT WITH PACIFIC BELL TO WORK TOGETHER ON INTEGRATING NEW AUDIO VIDEO AND DATA APPLICATIONS FOR USERS OF PERSONAL COMPUTERS UNDER THE AGREEMENT INTEL THE BIG MAKER OF COMPUTER CHIPS THAT ACT AS THE BRAINS OF PCS AND PACIFIC BELL UNIT OF SAN FRANCISCOBASED PACIFIC TELESIS GROUP WILL COLLABORATE TO INTEGRATE PCS AND TELEPHONES SO PCS CAN BE USED FOR SUCH THINGS AS VIDEOCONFERENCING INTEL OF SANTA CLARA CALIF IS DEVELOPING BUSINESS COMMUNICATIONS PRODUCTS THAT WILL USE AUDIO AND VIDEO TECHNOLOGY AND HAS SET UP AGREEMENTS WITH OTHER REGIONAL BABY BELLS NATIONWIDE TO TAP INTO THEIR TELECOMMUNICATIONS KNOWHOW 9308260095 930826 INTERNATIONAL PRICE WATERHOUSE IS OUSTED AS AUDITOR FOR FERRUZZI BY ITALY'S STOCK REGULATOR BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN ITALY'S STOCK MARKET REGULATORY AGENCY DENIED THE REAPPOINTMENT OF INTERNATIONAL ACCOUNTING COMPANY PRICE WATERHOUSE AS AUDITOR OF AGROCHEMICALS CONCERN FERRUZZI FINANZIARIA SPA THE AGENCY CONSOB NOTIFIED FERRUZZI AND PRICE WATERHOUSE THAT IT REVOKED APPROVAL OF THE AUDITOR'S THREEYEAR CONTRACT FROM 19931995 BECAUSE PRICE WATERHOUSE WASN'T TECHNICALLY ADEQUATE TO AUDIT FERRUZZI'S ACCOUNTS FERRUZZI SHAREHOLDERS HAD APPROVED THE REAPPOINTMENT AT THE ANNUAL MEETING IN JULY A SPOKESMAN FOR CONSOB DECLINED TO GIVE FURTHER REASONS FOR THE DECISION PRICE WATERHOUSE WHICH HAS AUDITED FERRUZZI'S BALANCE SHEETS FOR THE PAST SIX YEARS REVOKED ITS CERTIFICATION OF THE 1992 ACCOUNTS AT BOTH FERRUZZI AND ITS MAIN HOLDING COMPANY MONTEDISON SPA AFTER SURPRISE LOSSES WERE ANNOUNCED AT THE ANNUAL MEETING THE NEW LOSSES ARE NOW THE SUBJECT OF CRIMINAL INVESTIGATIONS AGAINST THE FERRUZZI FAMILY AND FORMER COMPANY OFFICIALS MAGISTRATES ALLEGE THAT FERRUZZI AND MONTEDISON BALANCE SHEETS HAVE BEEN FALSIFIED FOR YEARS AS FORMER DIRECTORS SOUGHT TO COVER SECRET LOSSES STEMMING FROM BRIBES TO POLITICIANS AND A FAILED ATTEMPT TO CORNER THE SOYBEAN MARKET IN CHICAGO DINO MARTINAZZOLI A PRICE WATERHOUSE PARTNER IN MILAN SAID THE AUDITING FIRM PLANNED TO CONTEST CONSOB'S DECISION IN ITALY'S ADMINISTRATIVE COURTS WE'RE CONFIDENT THAT OUR WORK HAS BEEN DONE IN A PROFESSIONALLY CORRECT WAY HE SAID WE DO NOT AGREE WITH THE REASONS FOR THE DENIAL GIVEN BY CONSOB MR MARTINAZZOLI SAID PRICE WATERHOUSE HAD DONE AN INTERNAL INVESTIGATION OF THE FERRUZZI AUDIT AND WE BELIEVE WE'VE ACTED PROPERLY THE NEW FERRUZZI LOSSES WERE A SURPRISE ANNOUNCEMENT THAT WE LEARNED AT THE ANNUAL SHAREHOLDERS MEETING HE SAID PRICE WATERHOUSE SAID IT HADN'T RECEIVED ANY NOTICE FROM CONSOB ABOUT ITS MONTEDISON AUDITING CONTRACT THAT CONTRACT EXPIRES AT THE END OF 1993 MR MARTINAZZOLI SAID FERRUZZI'S NEW DIRECTORS HAVE APPOINTED AUDITING FIRM DELOITTE & TOUCHE TO CONDUCT A SEPARATE AUDIT AT MONTEDISON AND FERRUZZI CREDITOR BANKS NOW IN CONTROL OF FERRUZZI EXPECT TO ANNOUNCE A RESTRUCTURING PLAN FOR THE DEBTRIDDEN GROUP IN MIDSEPTEMBER COMPANY OFFICIALS YESTERDAY REFUSED TO COMMENT ON A REPORT IN ITALIAN FINANCIAL DAILY IL SOLE 24 ORE DESCRIBING THE PLAN THE PAPER SAID THE RESTRUCTURING WOULD INCLUDE CAPITAL INCREASES ASSET SALES AND DEBT RESCHEDULING AND WOULD CUT FERRUZZI'S CURRENT DEBT OF 28 TRILLION LIRE 176 BILLION BY EIGHT TRILLION BY THE END OF THIS YEAR 9308260094 930826 COMPAS ELECTRONICS CONTRACT BROCKVILLE ONTARIO COMPAS ELECTRONICS INC SAID IT ENTERED INTO A CONTRACT WITH BROCK TELECOM LTD A UNIT OF NORTHERN TELECOM LTD TO SUPPLY ELECTRONIC CIRCUIT CARD ASSEMBLIES COMPAS SAID THE CONTRACT BASED ON A ROLLING 12MONTH FORECAST OF REQUIREMENTS IS VALUED AT ABOUT 5 MILLION CANADIAN DOLLARS US38 MILLION THE COMPANY SAID IT IS BEGINNING VOLUME SHIPMENTS UNDER THE AGREEMENT 9308260093 930826 INTERNATIONAL LORD KADOORIE TAIPAN IN HONG KONG DIES AT 94 HONG KONG REUTER LORD KADOORIE ONE OF THE LAST OF THE ORIGINAL FOREIGN TAIPANS WHO BUILT BUSINESS EMPIRES IN HONG KONG DIED WEDNESDAY AT AGE 94 LORD KADOORIE HONORARY CHAIRMAN OF CHINA LIGHT & POWER CO AND THE FOUNDER OF THE PENINSULA HOTEL WAS A PILLAR OF HONG KONG SOCIETY HE WAS BORN LESS THAN A YEAR AFTER BRITISH COLONIAL AUTHORITIES SIGNED THE 99YEAR LEASE ON HONG KONG'S NEW TERRITORIES ITS EXPIRATION IN 1997 WILL MARK THE RETURN OF HONG KONG TO CHINA BORN IN HONG KONG OF JEWISH PARENTS WHO HAD ARRIVED IN 1880 FROM BAGHDAD IRAQ LAWRENCE KADOORIE WAS EDUCATED IN SHANGHAI CHINA AND BRITAIN HE JOINED THE BOARD OF CHINA LIGHT ONE OF THE TERRITORY'S TWO POWER COMPANIES IN 1930 AND TOOK OVER THE CHAIRMANSHIP FIVE YEARS LATER HE WAS MADE A MEMBER OF BRITAIN'S HOUSE OF LORDS IN 1981 THE KADOORIE FAMILY STILL HAS A MAJOR STAKE IN CHINA LIGHT WITH THREE FAMILY MEMBERS ON THE BOARD THE FAMILY ALSO CONTROLS HONG KONG & SHANGHAI HOTELS LTD THE OWNER OF THE PENINSULA HOTEL GROUP OF WHICH SON MICHAEL KADOORIE IS CHAIRMAN OVER THE YEARS THE FAMILY'S FORTUNES TOOK A FEW TURNS AFTER THE JAPANESE SEIZED HONG KONG IN 1942 THE KADOORIES WERE KEPT IN A PRISON CAMP WHILE THE SUMPTUOUS PENINSULA HOTEL BECAME THE JAPANESE HEADQUARTERS 9308260092 930826 FINANCING BUSINESS ATCHISON CASTING CORP ATCHISON CASTING CORP ATCHISON KAN SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED INITIAL PUBLIC OFFERING OF 22 MILLION SHARES AT AN ESTIMATED PRICE OF 12 TO 14 A SHARE THE COMPANY WHICH PRODUCES STEEL CASTINGS SAID IT WILL USE THE PROCEEDS TO REPAY SUBSTANTIALLY ALL OF ITS DEBT FOR WORKING CAPITAL AND FOR GENERAL CORPORATE PURPOSES THE OFFERING IS BEING UNDERWRITTEN BY A GROUP LED BY PRUDENTIAL SECURITIES INC WHICH WAS GRANTED AN OPTION TO PURCHASE AS MANY AS 322500 ADDITIONAL SHARES FROM CERTAIN SHAREHOLDERS TO COVER OVERALLOTMENTS 9308260091 930826 SYSTEM ONCE RESERVED FOR THRIFTS POSTS RISE IN COMMERCIAL BANKS WASHINGTON DRIVEN CHIEFLY BY AN INFLUX OF COMMERCIAL BANKS THE FEDERAL HOME LOAN BANK SYSTEM HAS GROWN TO 4043 MEMBER INSTITUTIONS THIS REPRESENTS AN INCREASE OF 826 INSTITUTIONS SINCE THE ENACTMENT OF SAVINGSANDLOAN LEGISLATION IN 1989 THE LEGISLATION ALLOWED COMMERCIAL BANKS AND CREDIT UNIONS TO JOIN THE SYSTEM WHICH PREVIOUSLY WAS RESERVED FOR THRIFTS AS OF JULY 31 THE SYSTEM'S MEMBERSHIP CONSISTED OF 2229 THRIFTS 1754 COMMERCIAL BANKS 46 CREDIT UNIONS AND 14 INSURANCE COMPANIES TOTAL ASSETS OF THE MEMBER INSTITUTIONS ARE ABOUT 14 TRILLION THE SYSTEM IS REQUIRED BY THE 1989 LAW TO MAKE A 300 MILLION ANNUAL PAYMENT TO HELP SERVICE 30 BILLION OF OFFBUDGET BONDS THAT WERE SOLD AS PART OF THE THRIFT CLEANUP OPERATION ACCORDING TO A RECENT CONGRESSIONAL BUDGET OFFICE STUDY THE SYSTEM HAS GREATLY EXPANDED ITS PORTFOLIO OF FINANCIAL INVESTMENTS IN ORDER TO GENERATE SUFFICIENT REVENUE TO COVER THE 300 MILLION PAYMENT AND PROVIDE A MARKET RETURN TO ITS SHAREHOLDERS THE BUDGET OFFICE SAID THE SYSTEM'S INVESTMENT PORTFOLIO NOW AMOUNTS TO ABOUT 79 BILLION 9308260090 930826 BUSINESS BRIEF FEDERAL NATIONAL MORTGAGE CONCERN TO INVEST IN LOAN TO FINANCE CALIFORNIA HOMES FEDERAL NATIONAL MORTGAGE ASSOCIATION OR FANNIE MAE SAID IT WILL INVEST IN A 50 MILLION LOAN COMMITMENT MADE BY RESIDENTIAL FUNDING CORP TO A PARTNERSHIP THAT WILL FINANCE DEVELOPMENT OF MORE THAN 1500 SINGLEFAMILY HOMES IN CALIFORNIA THE HOMES ARE INTENDED FOR FIRSTTIME AND SECONDTIME BUYERS FANNIE MAE WHICH BUYS RESIDENTIAL MORTGAGES HAS AGREED TO BUY A 50 PARTICIPATION INTEREST UP TO 25 MILLION IN LOANS MADE TO THE PARTNERSHIP FROM RESIDENTIAL FUNDING CORP A UNIT OF GENERAL MOTORS ACCEPTANCE CORP THE PARTNERSHIP INCLUDES THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM PENSION FUND AND HEARTHSTONE ADVISORS SAN FRANCISCO 9308260089 930826 CAREMARK IN PACT WITH INSURER NORTHBROOK ILL CAREMARK INTERNATIONAL INC SAID ITS PRESCRIPTION SERVICE DIVISION WAS SELECTED AS THE PREFERRED MAIL ORDER PRESCRIPTION DRUG PROVIDER FOR PRUDENTIAL INSURANCE CO OF AMERICA OF NEWARK NJ CAREMARK SAID THAT UNDER THE TERMS OF THE THREEYEAR PACT IT WILL OFFER PHARMACY SERVICES BY MAIL TO INDIVIDUALS COVERED BY PRUDENTIAL'S HEALTHCARE PLANS THE COMPANY SAID PRUDENTIAL BENEFICIARIES USING THE MAILPHARMACY PROGRAM CAN OBTAIN MAINTENANCE MEDICATIONS INEXPENSIVELY THROUGH HOME DELIVERY MAINTENANCE MEDICATION IS TYPICALLY USED TO TREAT LONGTERM OR CHRONIC CONDITIONS SUCH AS ARTHRITIS HIGH BLOOD PRESSURE OR DIABETES 9308260088 930826 ECONOMY FORD MAY SET PATTERN FOR LABOR TALKS AS GM HOLDS BACK ON CONTRACT OUTLINE BY JACQUELINE MITCHELL AND ROBERT L SIMISON STAFF REPORTERS OF THE WALL STREET JOURNAL DEARBORN MICH FORD MOTOR CO PRESENTED THE UNITED AUTO WORKERS WITH AN OUTLINE FOR A NEW LABOR CONTRACT BUT GENERAL MOTORS CORP INDICATED IT WON'T FOLLOW SUIT THIS WEEK LESSENING ITS CHANCES OF SETTING THE PATTERN FOR THIS YEAR'S LABOR TALKS SEPARATELY THE UAW SAID IT DISPATCHED A FACTFINDING TEAM TO GM'S SATURN CORP PLANT IN SPRING HILL TENN TO INVESTIGATE ALLEGATIONS OF RACIAL AND SEX DISCRIMINATION IN THE WORKPLACE THE UNION CONFIRMED PUBLISHED REPORTS OF A FIVEHOUR MEETING INVOLVING ABOUT 150 WORKERS TUESDAY AT WHICH SUCH COMPLAINTS WERE AIRED THE ALLEGATIONS WHICH A SATURN SPOKESMAN DENIED COME AT A TIME WHEN SATURN IS UNDER PRESSURE TO TURN IN A BREAKEVEN OPERATING PERFORMANCE THIS YEAR THE UNIT HAS BEEN ACCLAIMED FOR ITS INNOVATIVE LABORMANAGEMENT PARTNERSHIP ALTHOUGH TOP UAW LEADERS HAVE BEEN UNHAPPY WITH SOME ASPECTS OF THE RELATIONSHIP GM'S DELAY IN OUTLINING ITS STANCE ON A CONTRACT COULD HAVE A BEARING ON THE UAW'S CHOICE OF A TARGET COMPANY AT WHICH TO FOCUS NEGOTIATIONS UNDER THREAT OF A STRIKE UNION OFFICIALS ARE TO DECIDE THAT MONDAY ORDINARILY THE COMPANIES' LATEST FORMAL CONTRACT PROPOSALS NORMALLY TROTTED OUT IN THE DAYS BEFORE A TARGET IS NAMED ARE A FACTOR IN THE CHOICE CHRYSLER CORP IS EXPECTED TO MAKE A PROPOSAL THIS WEEK BUT MOST IN THE INDUSTRY EXPECT FORD OR GM TO SET THE CONTRACT PATTERN THIS YEAR ALTHOUGH FORD CALLED A NEWS CONFERENCE TO ANNOUNCE THAT IT HAD MADE A CONTRACT OFFER JACK HALL VICE PRESIDENT FOR EMPLOYEE RELATIONS STEADFASTLY REFUSED TO DISCLOSE ANY DETAILS HE DID SAY THAT THE PROPOSAL ADDRESSES ALL THE MAJOR ISSUES INCLUDING HEALTHCARE COSTS OVERTIME THE OUTSOURCING OF WORK TO NONUNION SUPPLIERS AND WAGES ERNIE LOFTON THE UAW VICE PRESIDENT WHO IS LEADING THE TALKS WITH FORD WAS SIMILARLY NONCOMMITTAL SAYING ONLY THAT WE WERE NOT TOTALLY PLEASED WITH THE PROPOSAL IN THE STYLIZED RITUAL OF AUTO LABOR TALKS THAT HAS EVOLVED SINCE THE 1930S THE UNION NORMALLY SHOOTS DOWN THE COMPANY'S FIRST OFFER SO THAT IT CAN LATER TELL THE RANK AND FILE THAT IT HELD THE COMPANY UP FOR BETTER TERMS A GM SPOKESMAN INDICATED THAT THE NO 1 AUTO MAKER DOESN'T PLAN TO MAKE A SIMILAR COMPREHENSIVE PROPOSAL THIS WEEK BUT HE EMPHASIZED THAT THE COMPANY HAS LAID OUT ITS POSITION ON EVERY ASPECT OF THE CONTRACT IN BARGAINING SESSIONS SINCE TALKS OPENED IN JUNE BOTH SIDES HAVE A GOOD UNDERSTANDING OF THE ISSUES AND THE POSITIONS AND WE ARE ENCOURAGED BY THE PROGRESS WE HAVE BEEN MAKING THE SPOKESMAN SAID GM WHICH IS IN THE MIDST OF A FARREACHING RESTRUCTURING OF ITS AUTO OPERATIONS THE MOST INEFFICIENT IN NORTH AMERICA HAS SAID IT WANTS TO CUT ITS HEALTHCARE OUTLAYS INTRODUCE A TWOTIER WAGE SYSTEM IN ITS PARTS OPERATIONS AND GAIN FLEXIBILITY IN THE CONTRACT'S JOBSECURITY PROVISIONS THE SPOKESMAN MAINTAINED THAT GM STILL WANTS TO BE THE TARGET COMPANY SO IT CAN TAKE THE LEAD IN SETTLING SUCH MATTERS INDUSTRY OFFICIALS SPECULATE THAT CHRYSLER IS TOO SMALL TO BE AN EFFECTIVE TARGET CHOICE FOR THE UAW AND SOME SUGGEST THAT THE PROBLEMS OF GM WHICH WAS THE TARGET IN 1990 ARE TOO BIG TO MAKE IT ATTRACTIVE TO THE UNION IN THE END SOME INDUSTRY LEADERS SAY THE NEW CONTRACT IS LIKELY TO CHANGE ONLY MODERATELY FROM THE 1990 PACT WHICH RAISED WAGES 3 INITIALLY AND INCLUDED 3 LUMPSUM PAYMENTS IN 1992 AND 1993 AT THE SATURN PLANT IN TENNESSEE THE ALLEGATIONS OF DISCRIMINATION GAINED LOCAL PUBLICITY RECENTLY WHEN A BLACK FEMALE EMPLOYEE SAID ON TELEVISION THAT SHE HAD FOUND IN HER LOCKER AT WORK A BUSINESS CARDSIZED WARNING SIGNED KKK FOR KU KLUX KLAN THIS FOLLOWED THE FILING OF A CIVIL DISCRIMINATION SUIT IN MAY BY A BLACK EMPLOYEE CHARGING THAT HE WAS DENIED PROMOTION ON THE BASIS OF RACE ACCORDING TO COMPANY AND UNION REPRESENTATIVES THE UAW LOCAL UNION CHARACTERIZED THE FORUM WHICH WAS PUT ON BY OFFICIALS OF THE NATIONAL UNION'S CIVIL RIGHTS DEPARTMENT AS A POSITIVE CONSTRUCTIVE HEALTHY DIALOGUE ON HUMAN AND CIVIL RIGHTS THE UNION IS CONVINCED THERE IS NO ORGANIZED CONCERTED CAMPAIGN EFFORT BY THE KKK OR ANY OTHER RACIST GROUP WITHIN SATURN OR THE LOCAL UNION A SPOKESWOMAN SAID SHE ACKNOWLEDGED THAT MUCH OF THE DISCUSSION IN THE FORUM INVOLVED UNION POLITICS AND ORDINARY COMPLAINTS ABOUT PROMOTIONS AND DEMOTIONS A SATURN SPOKESMAN SAID THE COMPANY HAS RECEIVED FOUR DISCRIMINATION COMPLAINTS FROM ITS 7000 WORKERS WE ARE AN EQUALOPPORTUNITY EMPLOYER WE DON'T DISCRIMINATE AND WE DON'T ENDORSE ANY HATE GROUPS OF ANY KIND THE SPOKESMAN SAID HE NOTED THAT SATURN WAS RECOGNIZED LAST YEAR BY THE LABOR DEPARTMENT FOR OUTSTANDING VOLUNTARY RECRUITMENT OF WOMEN AND MINORITIES 9308260087 930826 CREDIT RATINGS S&P RAISES THE RATING ON 250 MILLION DEBT OF FRUIT OF THE LOOM NEW YORK STANDARD & POOR'S CORP SAID IT RAISED THE RATING ON ABOUT 250 MILLION IN DEBT ISSUED BY FRUIT OF THE LOOM INC CITING LOWER DEBT AND STRONG CASH FLOW THE RATINGS CONCERN UPGRADED THE CHICAGO APPAREL MAKER'S 7875 SENIOR NOTES DUE OCT 15 1999 TO TRIPLEBPLUS AFFIRMED THE TRIPLEBPLUS RATING ON THE COMPANY'S 7 SENIOR UNSECURED DEBENTURES DUE MARCH 15 2011 AND SAID THE RATINGS OUTLOOK IS POSITIVE THE CURRENT RATING ALSO PRESUMES LESS RISK ASSOCIATED WITH CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILLIAM FARLEY A LEVERAGED BUYOUT SPECIALIST WHO HAS DISAPPOINTED DEBTRATINGS AGENCIES IN THE PAST WITH OVERLY AGGRESSIVE PURCHASES THAT SOURED AMONG OTHER THINGS S&P IS HEARTENED THAT MR FARLEY'S COMPENSATION PACKAGE IS BASED ON THE COMPANY'S PERFORMANCE INCREASED CAPITAL SPENDING LIKELY WILL LIMIT FUTURE DEBT REDUCTION BUT THE COMPANY SHOULD REMAIN THE LEADING AND LOWCOST US MAKER OF MEN'S AND BOY'S UNDERWEAR AND SHOULD GROW ALONG WITH ITS MAJOR CUSTOMERS LIKE WALMART STORES INC AS WELL AS CONTINUE ITS INTERNATIONAL EXPANSION S&P SAID 9308260086 930826 WHO'S NEWS PEGASUS GOLD'S AZLANT QUITS AS FINANCE CHIEF SPOKANE WASH JOHN L AZLANT RESIGNED AS CHIEF FINANCIAL OFFICER OF PEGASUS GOLD INC CITING DIFFERENCES IN MANAGEMENT STYLE WITH THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER WERNER G NENNECKER MR AZLANT 47 YEARS OLD SAID THAT WHEN MR NENNECKER WAS NAMED TO THE TOP POSTS AT THE GOLD MINING CONCERN IN DECEMBER THE PAIR AGREED MR AZLANT WOULD REMAIN IN THE TOP FINANCIAL JOB THROUGH THE TRANSITION TO SEE IF THEIR MANAGEMENT STYLES MESHED BUT MR AZLANT SAYS I THINK WE HAD SOME DIFFERENCES SUCH THAT ON A LONGTERM BASIS WE BOTH DEEMED IT BEST TO PART COMPANY HE ADDED THAT THERE WASN'T A SPECIFIC EVENT OR CONFLICT THAT LED TO HIS DEPARTURE BUT WOULDN'T COMMENT FURTHER THERE'S NO ANIMOSITY ON MY SIDE HE SAID MR NENNECKER WAS OUT OF TOWN AND DIDN'T RETURN A TELEPHONE CALL A COMPANY SPOKESMAN SAID PEGASUS IS CURRENTLY CONSIDERING CANDIDATES FOR THE CHIEF FINANCIAL OFFICER POSITION MEANWHILE MR AZLANT SAID HE HASN'T ACCEPTED ANY OTHER EMPLOYMENT AND PLANS TO RELAX BEFORE MAKING HIS NEXT MOVE 9308260085 930826 DART GROUP MOVES BY HERBERT HAFT CLEARED BY JUDGE BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL IN THE FIRST ROUND OF THE HEATED HAFT DIVORCE BATTLE A WASHINGTON JUDGE HAS DENIED GLORIA HAFT'S REQUEST TO PREVENT DART GROUP CORP CHAIRMAN HERBERT HAFT FROM CHANGING THE CONTROLLING OWNERSHIP OF THE HAFT FAMILY BUSINESSES BUT THE JUDGE ALSO RULED THAT THE COURT COULD STILL AWARD MRS HAFT PART OR ALL OF THE CONTROLLING INTEREST AND THE VOTING RIGHTS IN THE HAFT'S RETAILING AND REALESTATE EMPIRE AFTER FOUR DAYS OF HEARINGS WHICH INCLUDED TESTIMONY FROM MRS HAFT A DISTRICT OF COLUMBIA SUPERIOR COURT JUDGE REJECTED HER REQUEST FOR A PRELIMINARY INJUNCTION TO BLOCK HER HUSBAND'S RECENT BUSINESS MANEUVERS WHICH MRS HAFT HAS CHARGED WERE EXECUTED TO DESTROY HER AND TWO OF HER CHILDREN FINANCIALLY THE 66YEAROLD MRS HAFT SEEKS A FORMAL SEPARATION AS THE FIRST STEP TOWARD ENDING HER 46YEAR MARRIAGE AND A MAJOR PORTION OF THE HAFT FAMILY ASSETS VALUED AT OVER 500 MILLION BUT JUDGE HARRIET TAYLOR DENIED MRS HAFT'S REQUEST FOR A SPECIAL FISCAL AGENT TO OVERSEE DART AND CONCLUDED THAT SHE HAS WHOLLY FAILED TO DEMONSTRATE THAT HER HUSBAND'S CONDUCT WAS CALCULATED OR INTENDED TO DILUTE OR DISSIPATE THEIR MARITAL PROPERTY AFTER THE RULING BOTH SIDES CLAIMED VICTORY MRS HAFT'S ATTORNEY MARNA TUCKER SAID WHAT MRS HAFT WANTS AT THE END OF THE DAY IS CONTROL OF SOME OF THE FAMILY BUSINESSES THE JUDGE HAS MADE IT CLEAR THAT SHE VIEWS THE BUSINESSES AS PART OF THE MARITAL ESTATE AND THAT THE COURT COULD AWARD ALL OR PART OF THAT THE RULING GIVES US WHAT WE REALLY NEED THE 73YEAROLD MR HAFT SAID IN A STATEMENT I AM OF COURSE VERY PLEASED WITH THE COURT'S REJECTION OF MRS HAFT'S MOTION FOR INJUNCTION THIS CASE WILL NOW PROCEED IN THE COURTS AND WE ARE CONFIDENT OF THE ULTIMATE OUTCOME HE ADDED WE EXPECT TO PREVAIL AS REPORTED EARLIER HERBERT HAFT RECENTLY TRANSFERRED HIS 57 STAKE IN DART GROUP WHICH ALSO CONTROLS CROWN BOOKS CORP AND TRAK AUTO CORP TO HIS YOUNGER SON AND ONLY FAMILY ALLY RONALD 34 HERBERT HAFT ALSO CAUSED DART TO ISSUE STOCK OPTIONS TO RONALD THAT COULD FURTHER BOOST RONALD'S SHARE IN DART MRS HAFT HAS CONTENDED THAT HER HUSBAND MADE THESE AND OTHER BUSINESS MOVES AT THE FAMILY'S CLOSELY HELD COMBINED PROPERTIES' REALESTATE HOLDINGS IN ORDER TO INSULATE HIS STAKE OF THE COUPLE'S ASSETS FROM BEING DIVIDED IN A DIVORCE THE COURT RULED THAT FOR THE PURPOSE OF A PRELIMINARY INJUNCTION MR HAFT'S ACTIONS WILL NOT IRREPARABLY INJURE MRS HAFT JUDGE TAYLOR WROTE WHATEVER SHARE OF THOSE BUSINESSES IF ANY THE COURT ULTIMATELY DECIDES TO AWARD TO MRS HAFT WILL STILL BE THERE FOR THE TAKING EVEN AS THINGS NOW STAND THE COURT COULD AWARD MRS HAFT PART OR ALL OF THE VOTING RIGHTS THAT MR HAFT RETAINED IN THE FAMILY'S PUBLIC BUSINESSES AND PART OR ALL OF HIS INTERESTS IN THE CLOSELY HELD BUSINESSES WHICH INCLUDE COMBINED PROPERTIES 9308260084 930826 INTERNATIONAL AMERICAN STANDARD SUCCEEDS IN KOREA BY OUTFLANKING LOCAL FIRMS' LOCKOUT BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA IT LOOKED LIKE A TOILET MERCHANT'S DREAM BY THE MID1980S KOREA'S RAPID INDUSTRIALIZATION HAD TURNED THE COUNTRY INTO ASIA'S SECONDLARGEST MARKET FOR BATHROOM FIXTURES AFTER JAPAN SO IT WAS INEVITABLE THAT NEW YORKBASED AMERICAN STANDARD INC THE WORLD'S LARGEST PLUMBINGFIXTURES PRODUCER WOULD ARRIVE IN FORCE THE COMPANY A SUBSIDIARY OF ASI HOLDING CO PLUNKED DOWN MORE THAN 5 MILLION TO RETOOL A KOREAN FAUCET PLANT TO HELP SUPPLY ITS REGIONAL OPERATIONS BY 1989 IT STARTED IMPORTING PARTS OF A QUALITY NEVER SEEN IN KOREA LUXURY ONEPIECE TOILETS SLEEK ACRYLIC BATHTUBS AND GLEAMING COUNTERTOP SINKS THEY CAME IN PENTHOUSE RED AND OTHER SHOCKING COLORS AND WERE DISPLAYED IN AN ELEGANT SHOWROOM BUT AMERICAN STANDARD SOON LEARNED IT NEEDED MORE THAN A SUPERIOR PRODUCT TO TURN A PROFIT IN KOREA IT REQUIRED POWERFUL CONNECTIONS TO BREACH THE OLDEST AND MOST FORMIDABLE OF NONTARIFF TRADE BARRIERS A DISTRIBUTION NETWORK CONTROLLED BY LOCAL MANUFACTURERS WITH LUCK IMAGINATION AND PERSISTENCE AMERICAN STANDARD CRACKED ONE OF ASIA'S TOUGHEST MARKETS AND REDEFINED AN INDUSTRY BY INTRODUCING WASHROOM CHIC TO KOREA'S FIRST GENERATION OF FASHIONCONSCIOUS CONSUMERS WE WERE FACED WITH A LOCKOUT SITUATION SAYS DAVID VAN HISE MANAGING DIRECTOR FOR AMERICAN STANDARD KOREA INC WE NEEDED DISTRIBUTORS WHO HAD A LIFETIME RELATIONSHIP WITH THE MAJOR MANUFACTURERS OTHERWISE IF THEIR CLIENTS BOUGHT OUR PRODUCT THEY WOULD GET CUT OFF BY OUR COMPETITION NONE CAME FORWARD SO AMERICAN STANDARD WENT OUT TO FIND ONE SEOUL WAS ALREADY SEWN UP BY AFFILIATES OF DAELIM KELIM AND RTOTO KOREA'S TOP PORCELAIN AND FAUCET MANUFACTURERS SO THE COMPANY LOOKED SOUTH TO PUSAN AND TAEGU THE COUNTRY'S SECOND AND THIRDLARGEST CITIES THERE THEY FOUND A WHITE KNIGHT IN HOME CENTER ONE OF KOREA'S LARGEST SUPPLIERS OF HOMEBUILDING MATERIALS AND APPLIANCES I COULD TAKE ON AMERICAN STANDARD BECAUSE I'VE BEEN IN THIS BUSINESS FOR 28 YEARS SAID PARK CHUL WOONG HOME CENTER'S CHAIRMAN IT WASN'T A BIG RISK BECAUSE I KNEW IT WAS A WORLDRENOWNED COMPANY IT'S TRUE THAT LOCAL COMPANIES BELIEVED IT WOULD HINDER THEIR BUSINESS BUT IT'S BENEFICIAL IN THE LONG RUN FOR THEM TO BE COMPETING AGAINST A COMPANY OF BETTER QUALITY AMERICAN STANDARD ALSO SENT TEAMS TO BUILDING SITES TO SELL DIRECTLY TO CONSTRUCTION COMPANIES THE GOING WAS SLOW UNTIL THE LATE 1980S WHEN KOREA'S HOUSING BOOM DEPLETED DOMESTIC SUPPLY AND COMPANIES WERE DESPERATE FOR STOCK UNLIKE ITS MORE SPECIALIZED COMPETITORS AMERICAN STANDARD WAS ABLE TO OFFER AN INTEGRATED PACKAGE OF FAUCETS TOILETS AND BATHTUBS CONSTRUCTION COMPANIES FREED OF THEIR OBLIGATIONS TO LOCAL SUPPLIERS BECAUSE OF THE SHORTAGE FLOCKED TO THE US BRAND PERHAPS AMERICAN STANDARD'S MOST IMPORTANT IMPORT WAS MARKETING KOREA'S SHIFT TOWARD WESTERNSTYLE BATHROOMS WITH SITDOWN TOILETS AS OPPOSED TO THE SQUAT VARIETY IS NEW LOCALLY MADE TOILETS STILL CARRY HOWTOUSE STICKERS COMPLETE WITH CARTOONFIGURES ON THE TANKS AMERICAN STANDARD ACCELERATED THE TREND AND TURNED THE TOILET INTO A STATUS SYMBOL TO COME INTO THIS MARKET WITH A 500 TOILET WAS INCONCEIVABLE SAYS MR VAN HISE BUT THE BATHROOM IS BECOMING MORE AN AREA FOR LEISURE RELAXATION THAT IS A FACTOR IN BATHROOM MARKETING MEANTIME AMERICAN STANDARD MADE ITS SINGLELEVER FAUCETS THE SPEARHEAD OF ITS PRODUCT LINE UNLIKE THE CONVENTIONAL DUALHANDLE MODEL THE SINGLELEVER IS EASIER TO ADJUST ESPECIALLY FOR BUSY COOKS AND FEATURES CERAMIC ALUMINUM OXIDE DISKS TO REGULATE THE WATER FLOW AND TEMPERATURE ORDINARY FAUCETS HAVE RUBBER DISKS THAT WEAR OUT UNDER THE DAILY LASHING OF KOREA'S TAP WATER WHICH CONTAINS SAND PARTICLES BUT THE SINGLELEVER DISK PRESENTED SOME PROBLEMS KOREANS TRADITIONALLY LOWER THEIR HEADS INTO THE SINK AND VIGOROUSLY WASH THEIR FACES AFTER MEALS BECAUSE THE HANDLE ON THE SINGLELEVER FAUCETS PROTRUDES SLIGHTLY BEYOND THE SPOUT FIRSTTIME USERS OCCASIONALLY JABBED THEIR FOREHEADS ON THE LEVER BUT SAYS MR VAN HISE IT ONLY TAKES A FEW TIMES TO GET IT RIGHT AMERICAN STANDARD'S FACTORY IN THE INDUSTRIAL BOROUGH OF ANSAN DOESN'T LOOK LIKE A SOURCE OF REVOLUTIONARY PLUMBING THE US COMPANY'S ARRIVAL IN KOREA FOLLOWED A DEBTFINANCED MANAGEMENT BUYOUT THAT FORCED ITS OVERSEAS OPERATIONS TO MAKE DO ON LEAN BUDGETS INSTEAD OF SPENDING 15 MILLION ON TOPEND IMPORTED MACHINETOOLS FOR EXAMPLE THE COMPANY ADAPTED LOCAL MACHINES THAT COULD DO THE SAME JOB FOR ABOUT 100000 MANUAL LABOR NIMBLY SUBSTITUTES FOR AUTOMATION A DRILL PRESS FOR EXAMPLE CANNOT CHANGE DRILLS MECHANICALLY SO THE SWITCH IS DONE BY HAND THE PROCESS MUST BE COMPLETED WITHIN SECONDS OTHERWISE A METICULOUS PRODUCTION AND DELIVERY SCHEDULE WILL BE DISRUPTED TO GUARD AGAINST DELAYS A LINE MANAGER CLOCKS EACH TRANSFER WITH A STOP WATCH AMERICAN STANDARD NOW HAS 16 OF KOREA'S BRASSFAUCET MARKET BY VALUE AND 9 BY VOLUME IT EXPECTS SALES TO INCREASE BY BETWEEN 5 TO 7 ANNUALLY FOR THE NEXT FEW YEARS THE COMPANY WON'T DISCLOSE ITS KOREAN EARNINGS BUT SAYS PROFIT HAS GROWN FIVEFOLD SINCE 1990 IT FORECASTS 20 EARNINGS GROWTH FOR THE NEXT THREE YEARS LOCAL MANUFACTURERS FACED WITH A SUPERIOR COMPETITOR THAT HAS PUSHED ITS WAY INTO THEIR DISTRIBUTION CHANNELS HAVE COUNTERED WITH THE SAME TACTICS THAT MADE KOREA AN INDUSTRIAL POWERHOUSE THEY'VE COPIED THE LEADER THE SINGLELEVEL FAUCET IS NOW A STANDARD WITHIN THE INDUSTRY AND ONEPIECE TOILETS ARE ALL THE RAGE A DAELIM AFFILIATE RECENTLY ISSUED A BROCHURE THAT STRESSES INTIMACY AND AESTHETICS A MARKETING TECHNIQUE UNHEARD OF IN KOREA BEFORE AMERICAN STANDARD'S ARRIVAL 9308260083 930826 INTERNATIONAL BRIEF GISTBROCADES NV SIXMONTH NET GREW 35 DIVISION'S RECOVERY IS CITED DUTCH BIOCHEMICAL GROUP GISTBROCADES NV SAID NET INCOME ROSE 35 IN THE FIRST HALF LARGELY ON A RECOVERY IN ITS INDUSTRIALPHARMACEUTICAL BUSINESS WHICH HAD PRODUCTION PROBLEMS IN THE YEAREARLIER HALF NET INCOME ROSE TO 577 MILLION GUILDERS 306 MILLION FROM A YEAREARLIER 428 MILLION GUILDERS ON A 7 IMPROVEMENT IN SALES TO 8036 MILLION GUILDERS FROM A YEAREARLIER 7515 MILLION GUILDERS THE SPOKESMAN SAID DELAYS LAST YEAR AFFECTED TWO PLANTS AT THE INDUSTRIALPHARMACEUTICAL OPERATION THAT HAD BEEN EXPECTED TO BE RUNNING IN 1992'S FIRST HALF THE UNITS CURRENTLY ARE OPERATING AT PLANNED LEVELS A COMPANY SPOKESMAN ALSO ATTRIBUTED THE IMPROVED RESULTS TO A COSTCUTTING AND EFFICIENCYENHANCING PROGRAM BUT DECLINED TO BREAK OUT COST DATA THE SPOKESMAN SAID GISTBROCADES'S FIRSTHALF RESULTS WERE SLIGHTLY BETTER THAN EXPECTED 9308260082 930826 OTC FOCUS STOCKS END MIXED AFTER HEAVY TRADING IN COMMUNICATIONS AND RELATED ISSUES BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AFTER A ROLLERCOASTER DAY OF TRADING THE OVERTHECOUNTER MARKET FINISHED MIXED DESPITE HEAVY BUYING IN COMMUNICATIONS STOCKS THE NASDAQ COMPOSITE INDEX DROPPED 148 OR 02 TO 73366 AFTER TRADING AS HIGH AS 73751 IN THE MORNING ADVANCING ISSUES OUTNUMBERED DECLINERS 1429 TO 1370 ON TOTAL VOLUME OF 3272 MILLION SHARES UP FROM TUESDAY'S 2834 MILLION INVESTORS SNATCHED UP SHARES OF TELECOMMUNICATIONEQUIPMENT STOCKS FOLLOWING TUESDAY'S FEDERAL COURT RULING THAT WOULD ALLOW BELL ATLANTIC TO ENTER THE VIDEOPROGRAMMING BUSINESS IF THE STOCK WAS CONNECTED TO TELEPHONE/CABLE OR ANYTHING LIKE THAT IT WENT NUTS SAID ROBERT ANTOLINI HEAD OF OTC TRADING AT DONALDSON LUFKIN & JENRETTE THE STOCKS OF SEVERAL COMPANIES THAT PROVIDE ELECTRONIC EQUIPMENT TO HELP BRING VIDEOONDEMAND SERVICES TO HOMES POSTED BIG GAINS DSC COMMUNICATIONS LEAPED 4 3/8 TO 65 3/8 AND BROADBAND TECHNOLOGIES SURGED 6 TO 40 3/4 PROVIDING ENTERTAINMENT AND INFORMATION INTO LIVING ROOMS IS A HIGHGROWTH BUSINESS SAID JOHN BAUER A TELECOMMUNICATIONS ANALYST WITH PRUDENTIAL SECURITIES THERE'S A RIPPLE EFFECT AND THOSE INVOLVED EQUIPMENT PROVIDERS PROGRAMMERS ARE ALL GOING TO BENEFIT FROM HAVING ANOTHER ACCESS TO YOUR LIVING ROOM BUT TECHNOLOGY STOCKS FARED POORLY AS INVESTORS TOOK PROFITS IN MANY STOCKS THAT HAD POSTED BIG GAINS LAST WEEK BORLAND INTERNATIONAL TUMBLED 99 CLOSING AT 18 1/2 DOWN 2 AFTER THE SOFTWARE COMPANY SLASHED PRICES ON SPREADSHEET PRODUCTS LATE TUESDAY AMONG OTHER SPREADSHEET MAKERS LOTUS DEVELOPMENT SKIDDED 1 7/8 TO 32 5/8 AND MICROSOFT DROPPED 1 5/8 TO 74 1/4 PIPER JAFFRAY CITING BORLAND'S PRICE CUT DOWNGRADED MICROSOFT TO ACCUMULATE FROM BUY AND REMOVED IT FROM ITS FOCUS LIST CISCO SYSTEMS TUMBLED 2 1/8 TO 53 INTEL DROPPED 1 TO 62 1/2 AND APPLE COMPUTER DIPPED 3/4 TO 27 1/4 SEVERAL STOCKS DEBUTED GROW BIZ INTERNATIONAL LEAPED TO 15 FROM ITS OFFERING PRICE OF 10 THE MINNEAPOLIS COMPANY DEVELOPS AND FRANCHISES RETAIL CONCEPTS FOR STORES THAT SELL BUY AND TRADE USED AND NEW MERCHANDISE GROW BIZ OFFERED 16 MILLION SHARES THROUGH UNDERWRITERS LED BY DAIN BOSWORTH GREAT WALL ELECTRONIC INTERNATIONAL FELL 1/4 TO 9 1/2 ON ITS DEBUT THE HONG KONGBASED COMPANY OFFERED 25 MILLION AMERICAN DEPOSITARY SHARES AT 9 3/4 THROUGH UNDERWRITERS LED BY HAMBRECHT & QUIST THE SIZE OF THE OFFERING WAS DECREASED FROM THREE MILLION ADSS EACH ADS REPRESENTS 50 COMMON SHARES THE COMPANY MANUFACTURES ELECTRONICS PRODUCTS INCLUDING CAR STEREOS COLOR TELEVISIONS AND TELEPHONES A+ COMMUNICATIONS JUMPED 375 TO 15 1/8 FROM ITS OFFERING PRICE OF 11 THE PAGING AND MESSENGER COMPANY BASED IN NASHVILLE TENN OFFERED 37 MILLION SHARES THROUGH UNDERWRITERS LED BY PRUDENTIAL SECURITIES THE OFFERING WAS INCREASED FROM 33 MILLION SHARES EXPECTED TO COME BETWEEN 8 AND 10 PERFORMANCE FOOD GROUP ROSE TO 15 1/2 FROM ITS OFFERING PRICE OF 14 THE DISTRIBUTOR OF FOOD PRODUCTS TO RESTAURANTS OFFERED 21 MILLION SHARES OF WHICH 16 MILLION WERE OFFERED BY THE COMPANY THROUGH UNDERWRITERS LED BY ROBINSONHUMPHREY CHIPCOM ROSE TO 51 FROM ITS OFFERING PRICE OF 49 ON ITS FIRST TRADING DAY THE COMPANY PRICED 800000 SHARES THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES CHIPCOM MANUFACTURES INTELLIGENT SWITCHING HUBS AND OTHER COMPUTER NETWORKING PRODUCTS SYSTEM SOFTWARE ASSOCIATES PLUNGED 4 1/2 TO 17 ON EARNINGS THAT WERE LOWER THAN EXPECTED THE CHICAGO SOFTWARE DEVELOPER EARNED 26 CENTS A SHARE FOR ITS FISCAL THIRD QUARTER COMPARED WITH 21 CENTS A YEAR EARLIER BUT THE RESULTS WERE BELOW THE 28 CENTS EXPECTED BY ANALYSTS SAN DIEGOBASED GTI JUMPED 4 1/2 TO 35 3/4 PACIFIC GROWTH EQUITIES BEGAN COVERAGE ON THE SUPPPLIER OF COMPONENTS TO NETWORKING COMPANIES WITH A BUY RECOMMENDATION CAITLIN MOLLISON CONTRIBUTED TO THIS ARTICLE 9308260081 930826 DIVIDEND NEWS ARROW FINANCIAL CORP ARROW FINANCIAL CORP GLENS FALLS NY DECLARED A DIVIDEND OF FIVE CENTS A SHARE FOLLOWING SIX CONSECUTIVE PROFITABLE QUARTERS THE BANK HOLDING COMPANY HAD SUSPENDED DIVIDEND PAYMENTS IN AUGUST 1991 THE DIVIDEND IS PAYABLE SEPT 27 TO STOCK OF RECORD SEPT 13 9308260080 930826 MARKETING & MEDIA BILL BANNING COMMERCIALS IN CLASSROOMS DEFEATED SACRAMENTO CALIF IN A VICTORY FOR WHITTLE COMMUNICATIONS LP THE CALIFORNIA ASSEMBLY VOTED DOWN A BILL THAT WOULD HAVE PROHIBITED SCHOOLS FROM SHOWING COMMERCIALS IN THE CLASSROOM THE MEASURE WHICH WAS APPROVED BY THE STATE SENATE IN JUNE WOULD HAVE BLOCKED THE BROADCASTING IN CALIFORNIA OF WHITTLE'S NEWS PROGRAM CHANNEL ONE WHICH FEATURES ADVERTISEMENTS WHITTLE BASED IN KNOXVILLE TENN HAS SIGNED CONTRACTS WITH RELATIVELY FEW SCHOOLS IN THE CALIFORNIA DUE PARTLY TO OPPOSITION FROM THE STATE EDUCATION DEPARTMENT BUT IT IS STRIVING TO EXPAND IN THE LARGE CALIFORNIA MARKET AND HAS SPENT OVER 1 MILLION LOBBYING ON BEHALF OF CHANNEL ONE IN THE STATE ED WINTER CHAIRMAN OF CHANNEL ONE SAID HE WAS HAPPY WITH THE VOTE BECAUSE THIS CONFIRMS THE FEELING THAT CHANNEL ONE INSTALLATION SHOULD BE A LOCAL DECISION THE VOTE 4131 WITH SEVEN ABSTENTIONS WOULD APPEAR TO MAKE ANOTHER LEGISLATIVE STRIKE AGAINST WHITTLE DIFFICULT BUT PATRICIA SHIN A SPOKESWOMAN FOR SEN ART TORRES THE BILL'S AUTHOR SAID THE MEASURE ISN'T DEAD AND COULD COME UP FOR RECONSIDERATION AS EARLY AS TODAY IN 1991 AN IDENTICAL MEASURE WAS PASSED BY THE SENATE AND VOTED DOWN IN THE ASSEMBLY 9308260079 930826 MEDICINE CROP OF YEWS PROMISES STEADY SUPPLY OF TAXOL BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL OLYMPIA WASH IN THE WAR AGAINST CANCER THE HEAD OF THE SUPPLY LINE IS ABOUT TO START RIGHT HERE AT WEYERHAEUSER CO'S MIMA TREE FARM THE BIG FORESTPRODUCTS COMPANY PLANS TO BEGIN HARVESTING THE NATION'S FIRST COMMERCIAL YEW CROP HERE EARLY NEXT MONTH SIGNALING AN END TO THE HELTERSKELTER SCRAMBLE FOR TAXOL ONE OF MEDICINE'S MOST PROMISING CANCERFIGHTING AGENTS DEMAND FOR THE DRUG FOUND IN THE BARK TWIGS AND NEEDLES OF YEWS HAS SOARED AS RESEARCHERS HAVE SCORED DRAMATIC SUCCESS IN USING IT AGAINST CANCERS OF THE OVARY BREAST AND LUNGS IN DECEMBER THE FOOD AND DRUG ADMINISTRATION MOVING WITH UNUSUAL SPEED APPROVED AN APPLICATION BY BRISTOLMYERS SQUIBB CO TO USE TAXOL ON WOMEN WHOSE OVARIAN CANCERS HAVEN'T RESPONDED TO OTHER TREATMENT THE COMPANY EXPECTS TO FILE A SIMILAR TAXOL APPLICATION FOR BREAST CANCERS LATER THIS YEAR UNTIL NOW MOST TAXOL HAS COME FROM THE BARK OF PACIFIC YEWS SLOWGROWING CONIFERS FOUND PRIMARILY IN THE COASTAL FORESTS OF THE PACIFIC NORTHWEST IT TAKES ABOUT 7000 POUNDS OF BARK TO PRODUCE A POUND OF TAXOL WHICH IS ENOUGH TO TREAT ABOUT 300 PEOPLE LAST YEAR NEARLY 18 MILLION POUNDS OF BARK NEARLY ALL FROM PACIFIC YEWS WAS GATHERED FOR THE DRUG INDEED THE DEMAND FOR TAXOL HAS MADE BARKGATHERING A COTTAGE INDUSTRY IN THE NORTHWEST'S FORESTS ENVIRONMENTALISTS HAVE PROTESTED THAT AS TAXOL DEMAND GROWS THE TREE COULD END UP BEING STRIPPED FROM THE WOODS BUT EARLIER THIS MONTH BRISTOLMYERS SAID IT WON'T RENEW ITS CONTRACT WITH HAUSER CHEMICAL RESEARCH INC A BOULDER COLO COMPANY THAT EXTRACTS TAXOL FROM PACIFIC YEW BARK HAUSER'S CONTRACT RUNS OUT NEXT AUGUST AND BRISTOLMYERS SAYS IT INTENDS TO SHIFT TO ALTERNATIVE SOURCES OF THE DRUG ONE BIG SOURCE WILL BE WEYERHAEUSER'S YEWS WHICH LIKE THE PACIFIC YEWS PRODUCE COMPOUNDS KNOWN AS TAXANES THAT CAN BE CONVERTED TO TAXOL M DIANNE DEFURIA BRISTOLMYERS'S SENIOR DIRECTOR OF BUSINESS DEVELOPMENT SAID IN AN INTERVIEW THAT THE NEW YORK PHARMACEUTICAL COMPANY EXPECTS TO REQUEST FDA APPROVAL LATER THIS YEAR TO MARKET TAXOL MANUFACTURED BY THE SEMISYNTHETIC PROCESS THE PROCESS WHICH INVOLVES TINKERING WITH TAXOL'S MOLECULAR CORE PRODUCES A MORE RELIABLE AND POTENT FORM OF THE DRUG THAN CAN BE GOTTEN FROM WILD YEW BARK ORIGINALLY BRISTOLMYERS DIDN'T EXPECT SEMISYNTHESIS TO BE READY FOR ANOTHER HALFDOZEN YEARS BUT MS DEFURIA SAYS IT NOW IS HOPING FOR FDA APPROVAL SOMETIME NEXT YEAR THAT MAKES WEYERHAEUSER WITH 15 MILLION HIGHTAXANE YEWS UNDER CULTIVATION IN THE NORTHWEST ONE OF THE LARGEST POTENTIAL NATURAL SOURCES OF THE DRUG EARLY NEXT MONTH WEYERHAEUSER THE ONLY COMMERCIAL CULTIVATOR PLANS TO HARVEST THE FIRST 40000 OF THE 21 MILLION YEWS IT BEGAN PLANTING HERE AT MIMA IN 1991 THE INITIAL CROP WILL GO FOR RESEARCH BUT WEYERHAEUSER OFFICIALS SAY THEY COULD BE HARVESTING MORE THAN A MILLION PLANTS BY NEXT YEAR AS COMMERCIAL DEMAND FOR TAXOL CLIMBS THAT DEMAND IS LIKELY TO BE SPURRED IF THE DRUG IS APPROVED FOR USE AGAINST OTHER CANCERS OVARIAN CANCER STRIKES ABOUT 20000 WOMEN IN THE US EACH YEAR BUT THE NUMBER OF BREAST CANCERS DIAGNOSED ANNUALLY RUNS TO NEARLY 175000 RESEARCHERS HAVE ALSO HAD LIMITED SUCCESS IN USING THE DRUG TO SHRINK CERTAIN LUNG TUMORS WEYERHAEUSER OFFICIALS SAY THEIR CULTIVATION PROGRAM SHOULD MATCH ANY RAPID JUMP IN DEMAND FOR TAXOL THE COMPANY SAYS ITS HYBRID YEWS NOT ONLY GROW MUCH FASTER THAN WILD PACIFIC YEWS BUT CONTAIN CONCENTRATIONS OF TAXANE FAR HIGHER THAN IN THE BARK OF THE WILD TREES WE BELIEVE WE WILL BE ABLE TO PRODUCE A HECK OF A LOT OF TAXOL AND KEEP ABLE TO KEEP UP WITH DEMAND SAYS RICHARD PIESCH MANAGER OF WEYERHAEUSER'S TAXOL PROGRAM THAT CONTRASTS SHARPLY WITH WEYERHAEUSER'S INITIAL FOOTDRAGGING ON TAXOL WHEN NATIONAL CANCER INSTITUTE OFFICIALS FIRST ASKED THE COMPANY TO GATHER 60000 WILD YEWS IN 1986 FOR AN EARLY TAXOL TRIAL MR PIESCH SAYS WEYERHAEUSER REJECTED THE REQUEST WE WEREN'T INTERESTED HE SAYS WEYERHAEUSER MANAGERS TURNED DOWN ANOTHER INTERNAL PROPOSAL TO DO MASS YEW PLANTINGS AT THE COMPANY'S NURSERIES DURING THE LATE 1980S THE VENTURE WAS DEEMED TO BE TOO RISKY AND IT CONFLICTED WITH THE PREVAILING CORPORATE BUSINESS PLAN TO NARROW WEYERHAEUSER'S FOCUS TO ITS CORE TIMBER BUSINESSES BUT IN 1991 WEYERHAEUSER SIGNED AN AGREEMENT TO SUPPLY BRISTOLMYERS WITH NURSERYGROWN YEWS WHILE ANALYSTS ESTIMATE THE MARKET FOR TAXOL COULD REACH 800 MILLION ANNUALLY WEYERHAEUSER'S CONTRACT TO SUPPLY YEWS FOR THE DRUG WON'T MEAN ANY SIGNIFICANT PROFIT SURGE FOR THE COMPANY WHICH LAST YEAR EARNED 372 MILLION BUT WEYERHAEUSER IS HOPING TO REAP SOME FAVORABLE PUBLICITY WE ARE HELPING PATIENTS IN NEED SAYS MR PIESCH THERE IS ALSO THE QUESTION OF COMPETING ALTERNATIVES WE WOULD LIKE A PIECE OF THAT ACTION TWO OF THE MOST CAREFULLY WATCHED POTENTIAL ALTERNATIVES TO YEWBASED TAXOL ARE AN ENTIRELY SYNTHETIC FORM OF THE DRUG AND ONE THAT INVOLVES GROWING PLANT CELLS FROM TISSUE CULTURES PAUL WENDER A STANFORD UNIVERSITY CHEMIST WHO IS ONE OF THE LEADERS IN ATTEMPTING TO SYNTHESIZE TAXOL COMPARES IT WITH THE EARLY DEVELOPMENT STAGES OF PENICILLIN DR WENDER SAYS HE EXPECTS TO KNOW WHETHER THE DRUG CAN BE SYNTHESIZED BY 1995 OTHERS ARE MORE CAUTIOUS SYNTHETIC TAXOL SAYS BRISTOLMYERS'S MS DEFURIA MAY NOT BE COMMERCIALLY FEASIBLE FOR YEARS AND YEARS IF AT ALL TWO SMALL BIOTECHNOLOGY COMPANIES PHYTON CATALYTIC INC OF ITHACA NY AND ESCAGENETICS CORP OF SAN CARLOS CALIF SAY THEY ARE WELL ON THE WAY TO PRODUCING TAXANE CULTURED FROM CELLS I THINK WE HAVE A SHOT AT COMMERCIAL PRODUCTION WITHIN TWO YEARS SAYS KRIS VENKAT PHYTON CATALYTIC'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER MS DEFURIA CALLS DR VENKAT'S TIMETABLE VERY AGGRESSIVE THE MOST RECENT ENTRY AND PERHAPS THE LONGEST SHOT IN THE TAXOL SWEEPSTAKES IS A FUNGUS RESEARCHERS RECENTLY FOUND GROWING IN A SINGLE PACIFIC YEW IN GLACIER NATIONAL PARK IN MONTANA THE FUNGUS IS THE FIRST NONYEW SOURCE OF TAXOL SAYS GARY STROBEL A PLANT PATHOLOGIST AT MONTANA STATE UNIVERSITY AND A MEMBER OF THE TEAM THAT REPORTED THE FIND IN APRIL DR STROBEL SAID HIS TEAM RECENTLY SIGNED A CONTRACT WITH CYTOCLONAL INC A DALLAS BIOTECH CONCERN TO GENETICALLY REPLICATE THE FUNGUS AND BOOST ITS TAXOL OUTPUT DR STROBEL SAYS THAT WHILE THE FUNGUS HAS BEEN FOUND IN ONLY ONE TREE AT THE REMOTE SITE IT HAS THE POTENTIAL THROUGH BIOGENETICS TO BECOME A NEW TAXOL SOURCE 9308260078 930826 BLUE CROSS SETTLES DISPUTE WITH CALIFORNIA CRITICS LOS ANGELES BLUE CROSS OF CALIFORNIA SAID IT AGREED TO PAY 100 MILLION TO SETTLE A DISPUTE WITH CALIFORNIA LEGISLATORS OVER ITS SALE TO THE PUBLIC OF A MINORITY STAKE IN ITS WELLPOINT HEALTH NETWORKS INC UNIT BLUE CROSS WILL STEP UP ITS CHARITABLE DONATIONS BY 5 MILLION OVER THE NEXT 20 YEARS TO SATISFY LEGISLATIVE CRITICS OF THE WELLPOINT SALE THE PACT HAS NO IMPACT ON WELLPOINT A BLUE CROSS SPOKESMAN SAID BLUE CROSS A NONPROFIT HEALTHCARE PROVIDER RAISED 476 MILLION IN JANUARY BY SELLING AN 18 STAKE IN WELLPOINT BY KEEPING A MAJORITY STAKE IN THE UNIT BLUE CROSS SIDESTEPPED A CALIFORNIA LAW REQUIRING NONPROFIT ORGANIZATIONS TO MAKE CHARITABLE DONATIONS WHEN THEY CONVERT TO FORPROFIT STATUS THE SETTLEMENT ALSO DEFLECTS PROPOSED LEGISLATION TO REQUIRE BLUE CROSS TO MAKE A RETROACTIVE DONATION THE BILL COULD PREVENT OTHER NONPROFITS FROM COPYING THE BLUE CROSS TRANSACTION NEGOTIATIONS BETWEEN BLUE CROSS AND LEGISLATORS BEGAN LAST WEEK OVER A COMPROMISE BLUE CROSS SAID IT ALL ALONG PLANNED TO INCREASE ITS PUBLIC BENEFIT SPENDING SOME SECURITIES ANALYSTS SAID IF BLUE CROSS WERE FORCED TO MAKE A LARGE RETROACTIVE PAYMENT IT MIGHT HAVE TO SELL MORE OF ITS WELLPOINT STOCK THE BLUE CROSS SPOKESMAN SAID THAT WON'T BE NECESSARY 9308260077 930826 STEWART ENTERPRISES ACQUISITIONS NEW ORLEANS STEWART ENTERPRISES INC SAID IT ACQUIRED TWO CEMETERIES AND ONE FUNERAL HOME IN PUERTO RICO FOR 115 MILLION THE FUNERAL HOME AND CEMETERY OWNER SAID THE FACILITIES PERFORM A TOTAL OF MORE THAN 1425 INTERMENTS AND FUNERAL SERVICES A YEAR 9308260076 930826 ALLIEDSIGNAL EXPLORES JOINING FORCES WITH FRENCH CONCERN IN AVIONICS LINE BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL IN A DEVELOPMENT REFLECTING DETERIORATING WORLD MARKETS FOR THE AEROSPACE INDUSTRY ALLIEDSIGNAL INC SAID IT IS EXPLORING MERGING ITS COMMERCIAL AVIONICS BUSINESS WITH THE AVIONICS OPERATIONS OF FRANCE'S SEXTANT AVIONIQUE SEXTANT AVIONIQUE CREATED IN 1989 BY TWO BIG FRENCH DEFENSE ELECTRONICS AND AEROSPACE COMPANIES PRODUCES ELECTRONICS AND COMPUTERS FOR AIRCRAFT ALLIEDSIGNAL BASED IN MORRIS TOWNSHIP NJ MAKES AEROSPACE AND AUTOMOTIVE PRODUCTS AND ENGINEERED MATERIALS THE COMBINED BUSINESS WOULD HAVE TOTAL SALES OF 1 BILLION ALLIEDSIGNAL SAID IF THE TWO COMPANIES REACHED AN AGREEMENT THE TRANSACTION WOULD BE COMPLETED THIS YEAR IN ORDER TO FACILITATE THE TRANSACTION THE TWO CREATORS AND MAJOR HOLDERS OF SEXTANT OFFERED TO BUY SEXTANT SHARES THEY DON'T OWN FOR 300 FRENCH FRANCS 51 A SHARE THOMSONCSF THE ARMSMAKING SUBSIDIARY OF THOMSON SA AND AEROSPATIALE OF FRANCE THE TWO MAJOR SHAREHOLDERS CURRENTLY OWN 525 OF SEXTANT THROUGH A HOLDING COMPANY CALLED ATEV EACH COMPANY OWNS 50 OF ATEV BASICALLY SEXTANT IS GOING THROUGH A VERY DIFFICULT TIME SAID A SPOKESMAN FOR THOMSONCSF IN PARIS THE ALLIANCE WITH ALLIEDSIGNAL WILL OPEN UP NEW MARKETS AND WILL CREATE A COMPANY SECOND TO HONEYWELL INC AND WILL GIVE IT MORE CLOUT THAN IT NOW HAS HE SAID TASSOS PHILIPPAKOS WHO FOLLOWS THE AEROSPACE INDUSTRY AT MOODY'S INVESTORS SERVICE INC SAID CONSOLIDATION HAS BEEN A TREND RECENTLY IN AN INDUSTRY HARD HIT BY A LONG SLUMP IN THE AIRLINE INDUSTRY AND A SHARP REDUCTION IN DEFENSE SPENDING WORLDWIDE BUT MR PHILIPPAKOS QUESTIONED THE WISDOM OF ALLIEDSIGNAL'S INTEREST IN SEXTANT THE PROBLEM IS THAT THE TWO COMPANIES HAVE TOTALLY DIFFERENT MANAGEMENT STYLES AND PHILOSOPHIES HE SAID HE SAID THAT THOMSON AND AEROSPATIALE ARE OWNED BY THE GOVERNMENT ALTHOUGH BOTH ARE ON THE LIST OF COMPANIES THE FRENCH GOVERNMENT WANTS TO PRIVATIZE THEY ARE BY NATURE NOT ALL THAT EFFICIENT AND AGGRESSIVE HE SAID AND ALLIEDSIGNAL ON THE OTHER HAND IS HEADED BY LAWRENCE BOSSIDY WHO IS ON THE AGGRESSIVE SIDE MR BOSSIDY THE CHAIRMAN OF ALLIEDSIGNAL HAS ORCHESTRATED A MASSIVE RESTRUCTURING OF THE COMPANY I AM CONCERNED HOW THEY WILL COMBINE THE TWO COMPANIES SAID MR PHILIPPAKOS ALLIEDSIGNAL DECLINED TO DISCUSS THE PROPOSED BUSINESS COMBINATION BEYOND ITS SHORT ANNOUNCEMENT IN WHICH IT SAID THE MOVE WILL SUBSTANTIALLY FURTHER INTERESTS OF BOTH COMPANIES IT WOULD BE THE SECOND SUCH MOVE BY ALLIEDSIGNAL IN THE AVIONICS MARKET THE COMPANY LAST MONTH ANNOUNCED THAT IT PLANNED TO BUY SUNDSTRAND CORP'S AVIONICS BUSINESS FOR 195 MILLION SEXTANT WAS CREATED IN JULY 1989 BY COMBINING THREE SUBSIDIARIES OF AEROSPATIALE AND A DIVISION OF THOMSON IN 1991 THE FRENCH AVIONICS COMPANY POSTED A LOSS OF 540 MILLION FRENCH FRANCS SAID A SPOKESMAN FOR THOMSON HE SAID THAT LAST YEAR THE COMPANY APPROACHED BREAKING EVEN BUT IT DOESN'T SEE ANY IMPROVEMENT OVER THE NEXT FEW YEARS IN THE FINANCIAL CONDITIONS OF THE COMPANY SEXTANT HASN'T PAID A DIVIDEND FOR THE LAST TWO YEARS THE THOMSON SPOKESMAN SAID THAT IF ATEV THE HOLDING COMPANY ENDS UP OWNING MORE THAN 95 OF SEXTANT SHARES AFTER THE TENDER OFFER IT WOULD REQUEST THE PARIS BOURSE TO DELIST THE COMPANY THE SHARE BUYBACK WILL BE FINANCED BY THE HOLDING COMPANY AND WILL RESULT IN THOMSON OWNING 666 OF SEXTANT AND AEROSPATIALE 334 9308260075 930826 ONTARIO SECURITIES UNIT'S APPEAL TORONTO THE ONTARIO SECURITIES COMMISSION SAID IT WILL APPEAL AN ONTARIO COURT RULING THAT DECLARED THE COMMISSION'S PENNYSTOCK POLICY INVALID THIS MONTH AN ONTARIO COURT RULED THE AGENCY EXCEEDED ITS JURISDICTION BY PLANNING TO IMPLEMENT A SET OF RULES GOVERNING THE SALES PRACTICES OF PENNYSTOCK DEALERS IN THE PROVINCE AMONG OTHER MEASURES THE RULES WOULD HAVE REQUIRED SUCH DEALERS TO PROVIDE CLIENTS WITH A FORM OUTLINING THE RISKS OF INVESTING IN PENNY STOCKS THE AGENCY SAID IT DECIDED TO APPEAL AFTER CONSULTING WITH THE PROVINCE'S MINISTRY OF FINANCE AND THE MINISTRY OF THE ATTORNEY GENERAL 9308260074 930826 DUPONT SCRAPS PLAN FOR WASTE INCINERATOR AT NEW JERSEY PLANT WILMINGTON DEL DUPONT CO CANCELED PLANS FOR A 100 MILLION HAZARDOUSWASTE INCINERATOR SAYING IT WOULDN'T BE PROFITABLE GIVEN INCREASED INCINERATION CAPACITY AROUND THE COUNTRY AND RECENT REDUCTIONS IN THE AMOUNT OF TOXIC WASTES DUPONT AND OTHER COMPANIES PRODUCE DUPONT'S DECISION IS ANOTHER SIGN THAT GROWTH IN THE HAZARDOUSWASTE INCINERATION BUSINESS HAS COOLED POSSIBLY FOR GOOD IN MARCH DUPONT AND BASF CORP THE US UNIT OF GERMAN CHEMICAL MAKER BASF AG CANCELED CONTRACTS THAT TOGETHER WOULD HAVE SUPPLIED ABOUT TWOTHIRDS OF THE HAZARDOUS WASTES SENT TO THE CONTROVERSIAL INCINERATOR IN EAST LIVERPOOL OHIO IN THE CASE OF THE DUPONT INCINERATOR AS WELL AS THE EAST LIVERPOOL BURNER DUPONT SAID ITS DECISION WAS MADE FOR ECONOMIC REASONS NOT DUE TO OPPOSITION FROM ENVIRONMENTALISTS THE DUPONT INCINERATOR WHICH WOULD HAVE BURNED 62000 TONS OF WASTES A YEAR FROM DUPONT AND COMMERCIAL CUSTOMERS WAS PLANNED FOR THE WILMINGTON DEL COMPANY'S SPRAWLING CHAMBERS WORKS PLANT IN DEEPWATER NJ DUPONT CONTINUES TO OPERATE A SMALLER INCINERATOR IN DEEPWATER AS WELL AS INCINERATORS AT PLANTS IN PONTCHARTRAIN LA AND SABINE RIVER TEXAS CLARK HOFFMAN SAFETY HEALTH AND ENVIRONMENT MANAGER AT CHAMBERS WORKS SAID THAT WHEN THE INCINERATOR WAS PLANNED SIX YEARS AGO DUPONT PRODUCED ENOUGH TOXIC WASTE TO MAKE IT WORTHWHILE BUT BY THE END OF THE 1980S DUPONT CUT ITS TOXICWASTE GENERATION 35 FROM THE EARLY '80S THE COMPANY REDUCED ITS GENERATION 10 IN THE PAST THREE YEARS HE SAID 9308260073 930826 ABREAST OF THE MARKET INDUSTRIALS RISE 1313 TO A RECORD AS INTEREST RATES CONTINUE TO FALL BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCK PRICES RODE FALLING INTEREST RATES TO ANOTHER RECORD THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 1313 POINTS TO 365209 HITTING A RECORD FOR THE SECOND STRAIGHT DAY STANDARD & POOR'S 500STOCK INDEX ADDED 036 POINT TO 46013 ALSO ITS SECOND CONSECUTIVE HIGH AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EDGED UP 020 TO 25535 A RECORD THE GAINS CAME AS LONGTERM INTEREST RATES CONTINUED TO SLIDE TO THEIR LOWEST LEVELS SINCE 1977 WHEN THE GOVERNMENT BEGAN REGULAR SALES OF 30YEAR BONDS THE YIELD ON THE TREASURY'S 30YEAR BOND FELL TO 616 FROM 619 TUESDAY THE DROP IN RATES OFFSET A DOWNBEAT ECONOMIC REPORT FROM THE GOVERNMENT THE COMMERCE DEPARTMENT SAID THAT DURABLE GOODS ORDERS FELL A SHARPERTHANEXPECTED 38 LAST MONTH THAT WAS THE STEEPEST DECLINE SINCE DECEMBER 1991 BUOYED BY THE DECLINE IN RATES THE DOW JONES UTILITY AVERAGE GAINED 165 POINTS TO A RECORD 25455 THIS HAS BEEN A VERY FAVORABLE ENVIRONMENT ON A SHORTTERM TRADING BASIS FOR STOCKS SAID RICHARD HOEY MANAGER OF DREYFUS'S 827 MILLION GROWTH & INCOME FUND MR HOEY SAID THAT STOCK PRICES HAVE BEEN SUPPORTED IN THE PAST WEEK BY RAPIDLY FALLING INTEREST RATES AND A DECLINE IN THE SUPPLY OF NEW STOCK WE FINALLY HAVE A BIT OF CESSATION IN THE SUPPLY OF UNDERWRITINGS HE SAID TYPICALLY NEW STOCK SALES SLOW IN THE SUMMER BUT THIS YEAR WALL STREET INVESTMENT BANKERS HAVE BEEN CRANKING OUT NEW ISSUES THROUGH MOST OF THE SUMMER TO MEET THE ENORMOUS APPETITE FOR STOCK ONLY IN THE PAST WEEK OR SO HAS THE PACE SLOWED A BIT ALLOWING THE MARKET TO ADVANCE MR HOEY SAID THE BABY BELLS CLIMBED SHARPLY AFTER A FEDERAL JUDGE GAVE BELL ATLANTIC A GREEN LIGHT TUESDAY TO ENTER THE VIDEOPROGRAMMING BUSINESS BELL ATLANTIC JUMPED 1 5/8 TO 61 BELLSOUTH 1 1/4 TO 56 3/8 AND AMERITECH 1 7/8 TO 83 1/2 COMPANIES THAT PROVIDE EQUIPMENT FOR CABLE SYSTEMS ALSO SIZZLED GENERAL INSTRUMENT SWELLED 3 3/8 TO 49 1/2 SCIENTIFICATLANTA SOARED 3 TO 36 1/4 AND AMERICAN TELEPHONE & TELEGRAPH GAINED 1 TO 60 3/8 JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ SAID HE HAS BEEN EXPECTING THE DOW JONES INDUSTRIALS TO HIT 3700 FOR QUITE SOME TIME BUT NOW THAT THE INDUSTRIAL AVERAGE IS MOVING CLOSER TO HIS TARGET MR MCALINDEN SAID HE IS WONDERING WHETHER MY TARGET IS TOO LOW OR THE RALLY IS JUST ABOUT OVER MR MCALINDEN SUSPECTS THAT STOCKS WILL SURPASS HIS GOAL THANKS TO DECLINING INTEREST RATES AND SIGNS THAT THE ECONOMY WHILE SLUGGISH CONTINUES TO GROW VOLUME ON THE BIG BOARD BALLOONED TO 301621830 SHARES FROM 263056950 SHARES TUESDAY ADVANCING ISSUES OUTPACED DECLINERS 1108 TO 865 PHILIP MORRIS WAS ONE OF THE MOST ACTIVE STOCKS ON THE BIG BOARD SLIDING 2 1/4 TO 48 7/8 THE FOOD AND TOBACCO GIANT DASHED INVESTORS HOPES WHEN IT DIDN'T RAISE ITS QUARTERLY DIVIDEND YESTERDAY AS ANTICIPATED IN RESPONSE SMITH BARNEY SHEARSON ANALYST RONALD MORROW LOWERED HIS INVESTMENT RATING ON THE COMPANY TO NEUTRAL FROM OUTPERFORM DELTA AIR LINES SOARED 2 1/4 TO 55 1/2 FIRST BOSTON ANALYST PAUL KAROS RAISED HIS RATING OF THE STOCK TO A BUY FROM HOLD AND INCREASED HIS 1994 EARNINGS ESTIMATE TO 460 A SHARE FROM 2 A SHARE MR KAROS EXPECTS DELTA TO UNVEIL ADDITIONAL CAPITAL EXPENDITURE CUTBACKS THAT WILL SAVE ABOUT 700 MILLION A YEAR AND HELP TO STANCH THE LOSSES THE COMPANY HAS BEEN SUSTAINING OTHER AIRLINE STOCKS ALSO ROCKETED PUSHING THE DOW JONES TRANSPORTATION AVERAGE 1496 POINTS HIGHER TO 166467 THE INDEX IS NOW WITHIN STRIKING RANGE OF ITS RECORD UAL THE PARENT OF UNITED AIRLINES GAINED 2 3/4 TO 149 1/8 AMR THE PARENT OF AMERICAN AIRLINES 1 3/4 TO 67 5/8 AND USAIR GROUP 1/4 TO 16 OIL STOCKS WERE ALSO HOT TEXACO CLIMBED 7/8 TO 64 3/4 EXXON 3/4 TO 65 7/8 MOBIL 1 TO 77 7/8 AND CHEVRON 1/2 TO 91 7/8 MEDTRONIC PLUNGED 3 3/8 TO 62 1/8 THE PACEMAKER CONCERN SAID IT MAY NOT MEET ITS GOAL FOR SECONDQUARTER REVENUE GROWTH ALLIEDSIGNAL LEAPT 1 1/2 TO 74 5/8 THE COMPANY AND SEXTANT AVIONIQUE SA SAID THEY ARE IN TALKS ABOUT A JOINT AVIONICS VENTURE THAT WOULD HAVE WORLDWIDE SALES OF MORE THAN 1 BILLION IF AN AGREEMENT IS REACHED THE COMPANIES EXPECT THE TRANSACTION TO CLOSE THIS YEAR TRAVELERS EDGED UP 7/8 TO 34 1/2 THE INSURANCE CONCERN SAID IT IS NEGOTIATING TO SELL AS MUCH AS 750 MILLION IN FORECLOSED COMMERCIAL PROPERTY TO TWO INVESTOR GROUPS THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 122 TO 45442 A RECORD THERE WERE 307 ADVANCERS AND 285 DECLINERS 9308260072 930826 LETTERS TO THE EDITOR ROSENBERGS DESERVED THEIR ACQUITTAL' IN AN AUG 18 OPED RULE OF LAW PIECE RONALD RADOSH AUTHOR OF A BOOK ONCE BLESSED AS THE DEFINITIVE WORD ABOUT THE GUILT OF OUR PARENTS ETHEL AND JULIUS ROSENBERG BLASTS THE AMERICAN BAR ASSOCIATION'S RETRIAL OF THE CASE AT WHICH THEY WERE ACQUITTED NOT SURPRISINGLY HE DIDN'T RESTATE THE ASSERTION HE MADE AT THE ABA PANEL DISCUSSION FOLLOWING THE RETRIAL THAT THE EVIDENCE NECESSARY TO CONVICT OUR MOTHER AT THE ORIGINAL TRIAL HAD BEEN FABRICATED JUST 12 DAYS BEFORE IT BEGAN IN ADDITION HE AGREED WITH ME THAT THE GOVERNMENT HAD EXAGGERATED THE VALUE OF THE SCIENTIFIC MATERIAL ALLEGEDLY STOLEN AND HAD FRAUDULENTLY CLAIMED THAT OUR PARENTS HAD STOLEN THE SECRET OF THE ATOM BOMB WILL THE REAL RONALD RADOSH STAND UP SINCE THE CHARGE AGAINST OUR PARENTS WAS CONSPIRACY TO COMMIT ESPIONAGE RATHER THAN ACTUAL ESPIONAGE OR TREASON THE ORAL TESTIMONY OF THEIR ALLEGED COCONSPIRATORS HARRY GOLD AND DAVID AND RUTH GREENGLASS WAS ALL THE PROSECUTION NEEDED TO SECURE A CONVICTION THE KEY OF COURSE WAS THE CREDIBILITY OF THOSE WITNESSES SINCE 1953 WHEN THE FIRST EVIDENCE OF PROSECUTION PERJURY IN THE ORIGINAL TRIAL WAS PROVED PEOPLE WHO SUPPORTED THE VIEW THAT THE CASE AGAINST OUR PARENTS WAS A FRAUD HAVE ARGUED THAT IF SUCH EVIDENCE COULD BE PRESENTED A FAIRMINDED JURY WOULD CONCLUDE THAT THE GOVERNMENT HAD FAILED TO PROVE OUR PARENTS GUILTY BEYOND A REASONABLE DOUBT IT WAS THE UNLIKELY SETTING OF AN AMERICAN BAR ASSOCIATION LITIGATION SECTION EXERCISE THAT PERMITTED INFORMATION THAT HAS ACCUMULATED SINCE THEN TO BE PLACED BEFORE TWO IMPARTIAL JURIES THIS GROUP LEARNED THAT MR GOLD LIED TO HIS FRIENDS AND ASSOCIATES ABOUT AN IMAGINARY FAMILY HE LIED TO HIS SOVIET SPY SUPERIORS ABOUT FICTITIOUS RECRUITS HE LIED TO A FEDERAL GRAND JURY IN 1947 HE LIED TO THE FBI AFTER HE HAD CONFESSED AND BEGUN TO COOPERATE AND HE LIED TO THE ORIGINAL ROSENBERG JURY WHEN HE SAID THE CODE USED TO IDENTIFY HIMSELF TO DAVID GREENGLASS WAS I COME FROM JULIUS THESE LIES ARE DOCUMENTED ONE OF THE NEW JURORS COMMENTED I'D JUST TAKE HIS TESTIMONY AND THROW IT OUT COMPLETELY YOU CAN'T BELIEVE ANYTHING HE SAYS SIMILARLY THIS GROUP LEARNED THAT THE OTHER KEY PROSECUTION WITNESSES DAVID AND RUTH GREENGLASS REPEATEDLY ALTERED THEIR STORIES FOR EXAMPLE THE EVIDENCE THAT OUR MOTHER HAD TYPED SPY DOCUMENTS WAS CREATED BY THE GREENGLASSES SHORTLY BEFORE THE TRIAL IN DIRECT CONTRADICTION TO PREVIOUS SWORN STATEMENTS THE ORIGINAL JURY NEVER HEARD THESE CONTRADICTIONS THUS THE HISTORIC RECORD DAMAGED THE GREENGLASSES' CREDIBILITY MR RADOSH TAKES AS FACT STATEMENTS ATTRIBUTED TO NIKITA KHRUSHCHEV THAT HAVE FAILED VOICE PRINT ANALYSIS TESTS THESE STATEMENTS THAT OUR PARENTS PROVIDED VERY SIGNIFICANT HELP IN ACCELERATING THE PRODUCTION OF THE SOVIETS' ATOMIC BOMB ALSO FLY IN THE FACE OF UNANIMOUS SCIENTIFIC TESTIMONY THAT INFORMATION OF LITTLE OR NO SCIENTIFIC VALUE WAS TRANSMITTED BY DAVID GREENGLASS EVEN IF THE GOVERNMENT'S CASE IS ACCEPTED MR RADOSH LEAVES THE IMPRESSION THAT IN THE ORIGINAL TRIAL OUR MOTHER TOOK THE STAND ONLY BRIEFLY TO TAKE THE FIFTH AMENDMENT IN FACT OUR MOTHER ON DIRECT EXAMINATION FORCEFULLY DENIED ALL INVOLVEMENT IN THE ALLEGED CONSPIRACY HER TESTIMONY COVERS 145 PAGES OF THE ORIGINAL TRANSCRIPT MR RADOSH SUGGESTS THAT ONE REASON THE RECENT JURIES ACQUITTED OUR PARENTS WAS BECAUSE THEY DID NOT UNDERSTAND THE TRUE NATURE OF AMERICAN COMMUNISM HE HAS IT HALFRIGHT OUR PARENTS WERE CHARGED AND CONVICTED OF THIS CRIME BECAUSE THEY WERE COMMUNISTS NOT BECAUSE THEY WERE SPIES SOME COMMUNISTS MAY HAVE BEEN SPIES BUT THERE WERE HUNDREDS OF THOUSANDS OF AMERICAN COMMUNISTS WHO WERE NOT THE RECENT JURIES TOOK THE PRESUMPTION OF INNOCENCE TO HEART AND FOCUSED UPON THE EVIDENCE NOT POLITICS THEY LOOKED AT THE REST OF THE GOVERNMENT'S CASE AND FOUND IT WANTING 9308260071 930826 MARKETING & MEDIA ADVERTISING HARDEE'S LIST OF PROSPECTIVE SHOPS SHUNS NEW YORK FOR THE HEARTLAND BY KEVIN GOLDMAN BY SUDDENLY PULLING ITS 81 MILLION ACCOUNT FROM OGILVY & MATHER WORLDWIDE'S NEW YORK OFFICE THE HARDEE'S FASTFOOD CHAIN SEEMS INTENT ON REPLACING THE VENERABLE MEMBER OF MADISON AVENUE WITH A DECIDEDLY NONNEW YORK SHOP FROM MIDDLE AMERICA TO THAT END HARDEE'S HAS COMPILED AN AGENCY WISH LIST OF SORTS BY AND LARGE ESCHEWING HUGE ESTABLISHED SHOPS IN NEW YORK AND LOS ANGELES IN FAVOR OF HOT PROSPECTS IN SUCH ENVIRONS AS SUBURBAN DETROIT CHICAGO MINNEAPOLIS ST LOUIS AND DALLAS THE HARDEE'S BUSINESS IS ONE OF THE LARGEST ACCOUNTS TO COME UP FOR GRABS THIS YEAR AND MOST OF THE AGENCIES WITH A STRONG SHOT AT IT HAVEN'T YET BEEN TOLD THEY ARE ON THE SHORT LIST INSIDERS SAY THEY INCLUDE ROSS ROY GROUP IN BLOOMFIELD HILLS MICH BAYER BESS VANDERWARKER AND HAL RINEY IN CHICAGO CMEKHBB AND FALLONMCELLIGOTT IN MINNEAPOLIS MCKINNEY & SILVER RALEIGH NC THE ST LOUIS OFFICE OF D'ARCY MASIUS BENTON & BOWLES AND THE RICHARDS GROUP BASED IN DALLAS TBWA IS ONE OF THE FEW NEW YORK SHOPS IN THE HARDEE'S LITANY OF RIVALS UP FOR THE BUSINESS THAT HAD BELONGED TO OGILVY'S NEW YORK OFFICE FOR MORE THAN EIGHT YEARS OGILVY & MATHER OWNED BY WPP GROUP SAID ITS CHICAGO OFFICE WAS ASKED TO PARTICPATE IN THE REVIEW WHICH HARDEE'S HOPES TO CONCLUDE BY THE END OF THE YEAR HARDEE'S A SUBSIDIARY OF IMASCO LTD ALSO RETAINED TWO CONSULTANTS TO AID IN ITS SEARCH FOR A NEW CREATIVE AGENCY MORGAN ANDERSON AND WILLIAM WEILBACHER OF BISMARK CONSULTING A HARDEE'S SPOKESMAN DECLINED TO COMMENT ON THE LIST OF AGENCY CANDIDATES EACH AGENCY WILL BE CONTACTED SHORTLY AND ASKED TO SUBMIT REELS OF THEIR SOCALLED GREATEST HITS SOME MAY HAVE TO TURN DOWN HARDEE'S TEMPTING OFFER BECAUSE OF POSSIBLE CONFLICTS OF INTEREST BAYER BESS FOR INSTANCE HANDLES A FRANCHISE CHAIN CALLED BOSTON CHICKEN HAL RINEY HANDLES THE SUBWAY CHAIN ADVERTISING BUT ACCORDING TO HARDEE OFFICIALS ITS KEY MARKETING PERSONNEL WANTED HIGHLY CREATIVE AGENCIES WE'RE LOOKING AT AN INDUSTRY THAT IS GOING TO ROCK AND ROLL OVER THE NEXT FEW YEARS SAYS JERRY GRAMAGLIA EXECUTIVE VICE PRESIDENT OF MARKETING AT HARDEE'S WE NEED INCREASED FLEXIBILITY WITH OUR CREATIVE ADVERTISING AND WANT AN AGENCY THAT CAN REACT QUICKLY TO THE CHANGING MARKETPLACE EACH AGENCY ON THE SHORT LIST CAME TO THE COMPANY'S ATTENTION WITH BREAKAWAY ADVERTISING OR AN IMPRESSIVE TRACK RECORD OF CLIENTS MCKINNEY FOR INSTANCE RECENTLY WON THE PRESTIGIOUS AUDI OF AMERICA ACCOUNT THE RICHARDS GROUP HANDLES MOTEL 6 WITH A CORNY YET EFFECTIVE CAMPAIGN WE'LL LEAVE THE LIGHT ON FOR YOU AND CREATES ADVERTISING FOR NEIMANMARCUS FALLON PRODUCES THE QUIRKY AND FUNNY LEE JEANS SPOTS IN WHICH ODD THINGS HAPPEN WHEN INDIVIDUALS TRY AND SQUEEZE INTO A PAIR IN PARTING WAYS WITH OGILVY'S NEW YORK OFFICE BOTH PARTIES CITED THE CLIENT'S WISH TO DIVIDE THE CREATIVE AND MEDIA BUYING PORTIONS OF THE ACCOUNT AS THE FACTOR THAT SPARKED THE MOVE BUT IT WAS CLEAR THAT IF HARDEE'S HAD BEEN THRILLED WITH OGILVY'S CREATIVE WORK THE CHAIN MIGHT HAVE STUCK WITH THE LONGTIME INCUMBENT THE MEDIA PLANNING NOW WILL BE TAKEN CARE OF BY THE REGIONAL AGENCIES THAT ALREADY HANDLE LOCAL HARDEE'S ADVERTISING WHICH CURRENTLY HAS THE SLOGAN ARE YOU READY FOR SOME REAL FOOD THE MEDIA BUYING INCLUDES 58 MILLION OF TV COMMERCIALS AND 23 MILLION OF RADIO SPOTS THE REGIONAL AGENCIES INCLUDE OMNICOM GROUP'S BBDO SOUTH BASED IN ATLANTA JORDAN ASSOCIATES IN OKLAHOMA CITY LEWIS ADVERTISING INC IN ROCKY MOUNT NC CHUCK RUHR ADVERTISING IN MINNEAPOLIS AND STONE & SIMONS ADVERTISING IN SOUTHFIELD MICH BUT THEY AREN'T CONSIDERED CANDIDATES FOR THE OVERALL ACCOUNT EXECUTIVES SAID MR GRAMAGLIA SAYS THAT OGILVY HAS DONE A GOOD JOB GETTING US TO THE LEVEL WE'RE AT TODAY HARDEE'S HAD REVENUE LAST YEAR OF 41 BILLION PLACING IT FOURTH BEHIND MCDONALD'S BURGER KING AND PIZZA HUT IN THE FAST FOOD WARS BUT MR GRAMAGLIA ADMITS HARDEE'S WHICH ALSO OWNS THE ROY ROGERS FAST FOOD CHAIN CAN'T OUTSPEND GIANT MCDONALD'S WHICH LAST YEAR FORKED OVER 411 MILLION FOR ADVERTISING ACCORDING TO LEADING NATIONAL ADVERTISING WHICH TRACKS AD SPENDING SO WE JUST HAVE TO BE A LITTLE SMARTER HE SAYS AND ALSO HAVE TO FIND A MORE DEFINED MESSAGE MCDONALD'S FOR INSTANCE IS MOST COMFORTABLE WITH MESSAGES THAT EMIT WARMTH LIKE A FATHER AND SON TALKING ABOUT LIFE OVER A BIG MAC AND FRIES WENDY'S INTERNATIONAL WITH ITS SENIOR CHAIRMAN OF THE BOARD/FOUNDER/SPOKESMAN R DAVID DAVE THOMAS USES HUMOR SUCH AS IN THE CURRENT COMMERCIALS MR THOMAS IN A GOOD NATURED FASHION CHASTISES INDIVIDUALS WHO CAN'T FINISH THEIR WENDY'S MEALS BECAUSE THEY ATE BREAKFAST THE CURRENT SPOTS FOR HARDEE'S WHICH AN OGILVY SPOKESWOMAN DESCRIBES AS A FULL SERVICE NOT FAST FOOD RESTAURANT INCLUDES ONE THAT SHOWS A WOMAN BAKING BREAKFAST BISCUITS AT 5 AM THE EMPHASIS IS ON EVERYTHING BEING BAKED ON THE PREMISES AND NOT NECESSARILY TRUCKED IN DURING THE WEE HOURS OF THE MORNING ONE NAME CONSPICUOUSLY OMITTED FROM HARDEE'S CURRENT LIST IS EARLE PALMER BROWN BETHESDA MD WHICH HANDLES THE ROY ROGERS ACCOUNT MR GRAMAGLIA SAYS IT IS LIKELY THAT EACH BRAND HARDEE'S AND ROY ROGERS WILL HAVE ITS OWN AGENCY EARLE PALMER WAS RECENTLY GIVEN A PLUM ASSIGNMENT HOWEVER IT IS HANDLING THE CREATIVE ACCOUNT OF A WINTER HOLIDAY PROMOTION FROM BOTH RESTAURANT CHAINS THAT WILL FEATURE THE POPULAR COCACOLA POLAR BEARS FROM COMMERCIALS CREATED BY CREATIVE ARTISTS AGENCY IN BEVERLY HILLS CALIF THE CHAINS WILL GIVE AWAY STUFFED POLAR BEARS KETCHUM WILLIAM B PERKINS RESIGNED AS PRESIDENT OF KETCHUM ADVERTISING'S NEW YORK OFFICE TO BECOME A PRINCIPAL AT CAFE USA A NEWLY ESTABLISHED COMPANY THAT PLANS TO DISTRIBUTE ADSUPPORTED PROGRAMMING TO SHOPPING MALLS KETCHUM WON'T IMMEDIATELY NAME A SUCCESSOR PENDING THE EXPECTED ACQUISITION OF A NEW YORK AGENCY MONTGOMERY WARD A NEW 15SECOND SPOT FOR MONTGOMERY WARD'S NEW CASUAL APPAREL CAMPAIGN FEATURING MODEL RACHEL HUNTER HAS THE TAG LINE IT'S IN THE JEANS TV REVENUE BROADCAST TELEVISION REVENUE INCLUDING NETWORK SYNDICATED NATIONAL AND LOCAL SPOT SALES ROSE 6 IN THE SECOND QUARTER OF 1993 TO 589 BILLION ACCORDING TO A TELEVISION BUREAU OF ADVERTISING ANALYSIS LOCAL TELEVISION SPENDING ROSE 7 TO 139 BILLION IN THE SECOND QUARTER NORTHROP OMNICOM GROUP'S BBDO LOS ANGELES OFFICE IS AWARDED NORTHROP CORP ADVERTISING ACCOUNT BILLINGS WEREN'T DISCLOSED GRIFFIN BACAL STUART SHLOSSMAN JOINS GRIFFIN BACAL AS SENIOR VICE PRESIDENT DIRECTOR OF NATIONAL BROADCAST PREVIOUSLY HE WAS WITH BBDO 9308260070 930826 DRAVO ENDING MEDIATION EFFORT PITTSBURGH DRAVO CORP SAID IT WILL END EFFORTS TO MEDIATE A LONGRUNNING LEGAL DISPUTE WITH LONG BEACH CALIF AND RESUME ITS LAWSUIT IN FEDERAL COURT IN LOS ANGELES THE MEDIATION PROCESS BEGAN IN DECEMBER 1992 OVER A 1989 LAWSUIT BROUGHT BY DRAVO AGAINST LONG BEACH OVER MONEY OWED FOR THE CONSTRUCTION AND OPERATION OF A WASTETOENERGY PLANT THE CITY CLAIMED THERE WERE DEFICIENCIES IN THE ESTIMATED 147 MILLION PLANT MEDIATION EFFORTS ENDED BECAUSE THE TWO PARTIES COULDN'T REACH A CONSENSUS DRAVO SAID THE TRIAL ISN'T SCHEDULED TO BEGIN FOR SEVERAL YEARS 9308260069 930818 RULE OF LAW ABA ACQUITS ROSENBERGS WITH POOR HISTORY AND PC BY RONALD RADOSH MOCK TRIAL REWRITES HISTORY WAS THE HEADLINE ON THE AUG 10 NEWS BULLETIN HANDED OUT TO THE THOUSANDS OF LAWYERS FROM AROUND THE COUNTRY WHO ATTENDED THE AMERICAN BAR ASSOCIATION CONVENTION IN NEW YORK CITY LAST WEEK THE HEADLINE WAS EXACTLY RIGHT IT REFERRED TO THE ABA'S MOCK RETRIAL OF JULIUS AND ETHEL ROSENBERG OBSERVING CONTEMPORARY RULES OF EVIDENCE AND TAMPERING BRAZENLY WITH THE HISTORICAL RECORD THE ABA'S MOCK COURT FOUND THE ROSENBERGS NOT GUILTY THE ACTUAL TRIAL WAS HELD IN MARCH 1951 AND THE DEFENDANTS WITH THEIR CODEFENDANT MORTON SOBELL WERE FOUND GUILTY OF CONSPIRACY TO COMMIT ESPIONAGE THEY HAD PASSED ATOMIC SECRETS TO THE SOVIETS IN THE EARLY 1940S FOR THEIR CRIME THE ROSENBERGS WERE SENTENCED TO DEATH IN THE ELECTRIC CHAIR TODAY MOST OBSERVERS READILY ACKNOWLEDGE THAT THEIR EXECUTION CARRIED OUT IN JUNE 1953 HAD MUCH TO DO WITH THE POLITICAL TEMPER OF THE TIME AND LITTLE TO DO WITH THE NATURE OF THE ROSENBERGS' ACTUAL OFFENSE ESPIONAGE COMMITTED DURING WARTIME TO HELP A THEN ALLIED NATION BUT WE ALSO KNOW THAT THE ROSENBERGS WERE GUILTY OF THE CRIME FOR WHICH THEY WERE TRIED SINCE THEN MUCH NEW INFORMATION HAS BEEN MADE AVAILABLE AND IT ALL ADDS TO THE INESCAPABLE CONCLUSION THAT JULIUS ROSENBERG LED A MAJOR SOVIET SPY NETWORK WHOSE ACTIVITIES INCLUDED GATHERING DATA PERTAINING TO THE ATOMIC BOMB THE NETWORK WAS RUN BY THE LATE ANATOLY YAKOVLEV A SOVIET SPY CHIEF IN 1990 THE PUBLICATION OF THE SECOND HALF OF NIKITA KHRUSCHEV'S MEMOIRS DISCLOSED THAT HE ONCE OVERHEARD MOLOTOV THE SOVIET FOREIGN MINISTER DURING THE WAR YEARS AND AFTER TELL JOSEPH STALIN THAT THE ROSENBERGS HAD VASTLY AIDED PRODUCTION OF OUR ABOMB AND HAD PROVIDED VERY SIGNIFICANT HELP IN ACCELERATING THE PRODUCTION OF OUR ATOM BOMB IT IS ALSO CLEAR THAT IN PROSECUTING THE ROSENBERGS THE GOVERNMENT COMMITTED MANY LEGAL IMPROPRIETIES INCLUDING EX PARTE COMMUNICATION BETWEEN THE JUDGE AND THE PROSECUTORS REGARDING THE DEATH SENTENCE MOST IMPORTANT IT IS CLEAR FROM THE EVIDENCE THAT THE CASE AGAINST ETHEL ROSENBERG WAS QUITE WEAK AT MOST ETHEL WAS AN ACCESSORY TO THE FACT YET SHE WAS INDICTED AND TRIED IN THE HOPE THAT HER HUSBAND WOULD BREAK DOWN AND AGREE TO COOPERATE WITH THE PROSECUTION SHE WAS USED AS A LEVER WITH WHICH TO PUSH JULIUS INTO COOPERATION UNFORTUNATELY THE ABA'S MOCK TRIAL IGNORED LEGAL AND HISTORICAL COMPLEXITIES AND OPTED INSTEAD FOR PURE THEATER LEAVING THE IMPRESSION THAT THE ROSENBERGS WERE INNOCENT IT MISREPRESENTED THE ACTUAL TRIAL AND SKATED OVER DETAILS BUT IT MANAGED TO BE THE BIG EVENT THAT THE ABA ORGANIZERS NO DOUBT WANTED AND IT CAPTURED HEADLINES AS IF IT DESERVED TO BE TAKEN SERIOUSLY UPON HEARING NEWS OF THE MOCK JURY'S VERDICT OF INNOCENCE THE ROSENBERGS' ELDER SON MICHAEL MEEROPOL PROCLAIMED HIS INTENTION OF APPROACHING ATTORNEY GENERAL JANET RENO AND ASKING HER TO REOPEN THE CASE THE KEY TO THE MOCK TRIAL'S VERDICT LAY IN THE ROSENBERGS PROUD DECLARATIONS OF THEIR MEMBERSHIP IN THE COMMUNIST PARTYAN AFFILIATION THAT OBVIOUSLY MEANT SOMETHING VERY DIFFERENT IN THE WAR YEARS AND EARLY POSTWAR YEARS THAN IT DOES TODAY AT THE MOCK TRIAL THESE DECLARATIONS WERE MADE AS IF IN DEFIANCE OF A REPRESSIVE POLITICAL PREJUDICE AS ONE JUROR EXPLAINED THE CRIME IS THAT THEY WERE REGISTERED COMMUNISTS THE IMPLICATION OF THIS LINE OF THOUGHT IS THAT THE US PUT THE ROSENBERGS ON TRIAL FOR THEIR POLITICAL VIEWS AND FABRICATED AN ESPIONAGE CASE IT ISN'T HARD TO SEE HOW SUCH A VIEW EMERGED IN THE MOCK TRIAL NOT ONLY DID THE DEFENDANTS PROUDLY PROCLAIM THEIR PARTY AFFILIATION BUT THEIR DEFENSE COUNSEL EXPLAINED OVER AND OVER HOW THEY HAD JOINED THE PARTY AS IDEALIST YOUNG PEOPLE HOPING TO BUILD A BETTER WORLD ECHOING THE PARTY LINE OF THE 1940S THE DEFENSE COUNSEL EVEN EXPLAINED THAT THE PARTY'S SLOGAN WAS COMMUNISM IS TWENTIETH CENTURY AMERICANISM THE ACTRESS WHO PLAYED ETHEL TOVAH FELDSHUH REINFORCED THIS VIEW BY TELLING THE JURY YOU COULD BE A LOYAL AMERICAN AND STILL BELIEVE IN THE COMMUNIST SYSTEM IN THE ACTUAL TRIAL THE ROSENBERGS REFUSED TO ANSWER WHETHER OR NOT THEY WERE COMMUNISTS AND INVOKED THEIR FIFTH AMENDMENT RIGHTS IN DOING SO UNTIL VERY RECENTLY THEIR DEFENDERS ARGUED THAT THEY WERE SIMPLE PEACELOVING PROGRESSIVES FALSELY ACCUSED OF BEING COMMUNISTS BECAUSE OF THEIR OPPOSITION TO PRESIDENT TRUMAN'S WAR PROGRAM BUT OF COURSE THEIR PARTY AFFILIATION IS NOW BEYOND DISPUTE THE MOCK TRIAL SIMPLY TRIED TO TURN THIS FACT TO THE ROSENBERGS' ADVANTAGE IT DID THIS ONE SUSPECTS BY TRADING OFF THE JURORS' IGNORANCE OF AMERICAN COMMUNISM'S STRONG TIES TO THE SOVIET UNION AND ITS POLICIES AND BY TAPPING INTO OUR CULTURE'S CURRENT OBSESSION WITH MAINTAINING A POLITICALLY CORRECT TOLERANCE OF DIVERGENT VIEWS THE MOCK TRIAL DISTORTED OTHER DETAILS IN THE ORIGINAL TRIAL DEFENSE COUNSEL EMANUEL BLOCH ACCEPTED AS TRUE THE ENTIRE TESTIMONY OF CONFESSED SOVIET SPY HARRY GOLD IN THE MOCK TRIAL COUNSEL SUBJECTED THE ACTOR PLAYING GOLD TO A CROSS EXAMINATION THAT NEVER HAPPENED GOLD IN REALITY A CREDIBLE WITNESS CAME OFF AS A PHONY IN THE MOCK TRIAL SOMEONE VERY DIFFERENT FROM THE SOVIET AGENT HE WAS IN REAL LIFE ONE MOCK JUROR EXPLAINED THAT HE KNEW GOLD WAS LYING BECAUSE OF HIS BODY LANGUAGE BUT OF COURSE THE JUROR WAS WATCHING AN ACTOR THE THEATRICAL DISTORTIONS WERE MOST PRONOUNCED IN THE CASE OF ETHEL ROSENBERG MS FELDSHUH WHO IS IT MUST BE SAID A BRILLIANT ACTRESS TOLD ME SHE PREPARED FOR THE PART BY KEEPING ONE OBJECT IN MIND TO SAVE ETHEL'S LIFE THUS WHEN SHE HAD ETHEL SAY I AM COMPLETELY AND ABSOLUTELY INNOCENT IT WAS INDEED COMPELLING THE JURY MEMBERS EQUIPPED WITH HANDHELD COMPUTERS TO RECORD THEIR REACTIONS RESPONDED IMMEDIATELY WITH THE HIGHEST OF MARKS FOR ETHEL'S CREDIBILITY AS A WITNESS OF COURSE IN THE ACTUAL TRIAL ETHEL TOOK THE STAND BRIEFLY INVOKED THE FIFTH AMENDMENT AND IMPRESSED THE JURY AS A HOSTILE AND SOMEWHAT REMOVED WOMAN WHAT THEN DOES A MOCK RETRIAL PROVE NOTHING UNFORTUNATELY THE EVENT WILL BE REPLAYED SOON ON COURT TV AND THE A&E NETWORK NO DOUBT LEAVING AUDIENCES WITH THE IMPRESSION THAT THE GOVERNMENT WAS STAGING A WITCH HUNT AGAINST COMMUNISTS AND NOT CONDUCTING AN ESPIONAGE TRIAL WHAT PERHAPS BEGAN AS AN ATTEMPT TO ENTERTAIN LAWYERS AT THEIR ANNUAL CONVENTION ENDED UP AS THE ABA'S OWN BULLETIN ANNOUNCED REWRITING HISTORY THE BAR ASSOCIATION OUGHT TO BE ASHAMED OF ITSELF BUT IT PROBABLY ISN'T MR RADOSH IS THE AUTHOR WITH JOYCE MILTON OF THE ROSENBERG FILE A SEARCH FOR THE TRUTH RANDOM HOUSE 1984 SEE RELATED LETTER LETTERS TO THE EDITOR ROSENBERGS DESERVED THEIR ACQUITTAL' WSJ AUG 26 1993 9308180089 YY93 MM08 9308260068 930826 WHO'S NEWS DELL COMPUTER VICE PRESIDENT AUSTIN TEXAS DELL COMPUTER CORP HAS NAMED CATHERINE P THOMPSON VICE PRESIDENT INTERNAL AUDIT A NEW POSITION MS THOMPSON 41 YEARS OLD WILL REPORT TO THOMAS J MEREDITH CHIEF FINANCIAL OFFICER MS THOMPSON WAS A NATIONAL PARTNER AT ARTHUR ANDERSEN & CO A DELL SPOKESWOMAN SAID MS THOMPSON'S APPOINTMENT WASN'T RELATED TO A CONTROVERSY LAST YEAR ABOUT DELL'S FOREIGN CURRENCY TRADING PRACTICES THE SECURITIES AND EXCHANGE COMMISSION LAUNCHED AN INQUIRY INTO DELL AFTER A SECURITIES ANALYST QUESTIONED AN UNUSUALLY AGGRESSIVE CURRENCY HEDGING PROGRAM AT THE FASTGROWING MAILORDER PC COMPANY 9308260067 930826 WEDNESDAY'S MARKETS INDUSTRIALS HIT A HIGH BONDS GAIN PROFITTAKING SLOWS STOCKS' MOMENTUM DOLLAR IS STRONGER BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE FINISHED WITH ANOTHER RECORD BUT SOME PROFITTAKING COOLED THE STOCK MARKET'S FEVERISH MOMENTUM BOND PRICES ROSE AND THE DOLLAR STRENGTHENED THE INDUSTRIAL AVERAGE CLIMBED 1313 POINTS TO 365209 STANDARD & POOR'S 500STOCK INDEX INCHED UP 036 TO A RECORD 46013 BUT THE NASDAQ COMPOSITE INDEX FELL 148 TO 73366 INVESTORS CONTINUED TO FAVOR ECONOMICALLY SENSITIVE STOCKS ESPECIALLY AIRLINES WHICH SURGED AFTER FIRST BOSTON UPGRADED ITS INVESTMENT RATING ON DELTA AIR LINES THE RALLY IN AIRLINES SPARKED ANOTHER ADVANCE IN THE DOW JONES TRANSPORTATION AVERAGE UP 1496 POINTS TO 166467 THOUGH THE STOCK RALLY SLOWED COMPARED WITH THE DOW'S 32POINT RISE TUESDAY ANALYSTS SEE FURTHER GAINS WE'RE JUST IN A BULLISH TREND THAT CONTINUES TO BE DRIVEN BY LOW INTEREST RATES AND BETTER EARNINGS SAID GERALD SIMMONS SENIOR VICE PRESIDENT IN CHARGE OF TRADING AT INTERSTATE/JOHNSON LANE IN ATLANTA YOU CAN'T ASK FOR A BETTER SCENARIO BONDS MEANDERED RISING EARLY ON A LARGERTHANEXPECTED DROP IN JULY DURABLE GOODS ORDERS PRICES THEN FELL BEFORE RECOVERING LATE IN THE DAY SENDING LONGTERM INTEREST RATES TO ANOTHER 16YEAR LOW OVERSEAS EUROPE'S MAJOR STOCK MARKETS RALLIED ON EXPECTATIONS THAT GERMANY'S CENTRAL BANK WILL CUT KEY INTEREST RATES TODAY FRENCH STOCKS ROSE 17 GERMAN SHARES 11 AND BRITISH STOCKS 1 ELSEWHERE THE SWISS STOCK MARKET ROSE 12 SPAIN'S 14 AND NORWAY'S 17 INVESTORS ARE BETTING THAT LOWER GERMAN RATES WILL PROMPT OTHER EUROPEAN COUNTRIES TO REDUCE THEIR OWN RATES TO REVIVE THEIR RECESSIONRIDDEN ECONOMIES THERE IS STILL A STRONG PROSPECT THAT INTEREST RATES IN FRANCE MIGHT FALL EVEN IF IT ISN'T MANAGED AS QUICKLY AS IT WAS IN THE UK LAST YEAR SAID FRANCOIS WAT HEAD OF FRENCH EQUITY SALES AT BANQUE SG WARBURG IN PARIS MEANWHILE THE HONG KONG STOCK MARKET WHICH IS OFF 45 SINCE LAST THURSDAY FELL FOR THE FOURTHCONSECUTIVE DAY JOOST VOS A SENIOR VICE PRESIDENT AT BARING SECURITIES INC IN NEW YORK ATTRIBUTED THE DECLINE TO PROFITTAKING AFTER A 10 RALLY IN THE PRECEDING TWO WEEKS DISAPPOINTING EARNINGS REPORTS AND NEW RESTRICTIONS ON RESIDENTIAL MORTGAGE LENDING AFTER THE HONG KONG MARKET CLOSED THE US IMPOSED ECONOMIC SANCTIONS ON CHINA FOR VIOLATING INTERNATIONAL ARMS CONTROL AGREEMENTS MR VOS EXPECTS HONG KONG PRICES TO DROP WHEN TRADING STARTS TODAY BUT AMERICAN AND EUROPEAN INVESTORS WILL PULL IT BACK INTO POSITIVE TERRITORY WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 016 TO 11128 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 3016 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1108 ISSUES ROSE AND 865 FELL BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN 3/8 POINT OR MORE THAN 375 FOR EACH 1000 FACE AMOUNT TO YIELD 616 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16848 MARKS AND 10495 YEN COMPARED WITH 16790 MARKS AND 10375 YEN TUESDAY 9308260066 930802 REVIEW & OUTLOOK EDITORIAL ANGOLAN DIVORCE IN SLOUCHING TOWARD AID FOR THE FORMERLY MARXIST REGIME IN ANGOLA THE CLINTONITES ARE OUT TO SETTLE AN OLD SCORE WITH THE REAGAN ADMINISTRATION THIS ISN'T A PROMISING WAY TO DEAL WITH ONE OF AFRICA'S MESSIER ETHNIC CONFLICTS CHOOSING SIDES IN ANGOLA'S CIVIL WAR MADE SENSE IN THE DAYS WHEN RONALD REAGAN WAS ARMING JONAS SAVIMBI AND HIS UNITA REBELS FORTY THOUSAND CUBAN TROOPS AND SOVIET ADVISERS WERE SWARMING OVER THE COUNTRY AND THE KREMLIN WAS PUMPING IN A BILLION DOLLARS A YEAR IN MILITARY HARDWARE MR SAVIMBI WAS HELPING WIN THE COLD WAR APPARENTLY THIS REMAINS REASON ENOUGH FOR THE DEMOCRATIC PARTY'S FLAKIER ELEMENTS TO EMBRACE THE RIVAL MPLA REGIME AS THE EMBODIMENT OF EVERY PROGRESSIVE VIRTUE YET FOR THE COMBATANTS ANGOLA'S WAR HAS ALWAYS BEEN ABOUT ETHNIC POWER IN THIS REGARD MR CLINTON'S NEW PALS HAVE MUCH TO ANSWER FOR AFTER LAST YEAR'S ELECTION DEBACLE THE MPLA HANDED OUT AUTOMATIC WEAPONS TO SLUM DWELLERS IN THE CAPITAL LUANDA AND HUNDREDS OF UNITA MEMBERS AND THEIR ETHNIC KIN WERE SLAUGHTERED BUT THEN THROUGH TWO DECADES OF WAR THE MPLA WAS CONTENT TO LET THE COUNTRY'S VAST INTERIOR SLIDE INTO A CHARNEL HOUSE RATHER THAN ABIDE ANY THOUGHT OF SHARING POWER WITH MR SAVIMBI AND HIS OVIMBUNDU ETHNIC MAJORITY IN THEIR SEASIDE CAPITAL PROTECTED BY HAVANA'S TROOPS AND ROLLING IN PETRODOLLARS FROM ANGOLA'S OFFSHORE WELLS THE MPLA CADRES WERE LARGELY IMMUNE FROM THE WAR'S UNPLEASANTNESS IF THE US IS NOW TO BECOME THEIR PROTECTOR THEY'LL REMAIN AS INTRANSIGENT AS EVER THIS IS NOT TO SAY THAT MR SAVIMBI IS AN ANGEL HE REJECTED LAST YEAR'S ELECTION WHICH HOWEVER FLAWED GAVE A MODEST VERDICT IN FAVOR OF THE MPLA'S EDUARDO DOS SANTOS AND HIS TROOPS HAVE COMMITTED ETHNIC BARBARITIES OF THEIR OWN EVEN IN THEIR CURRENT PINCHED CIRCUMSTANCES THEY RANGE FREELY OVER 75 OF THE COUNTRY AND STRIKE OCCASIONALLY AT LUANDA'S POWER AND WATER SUPPLIES THERE WON'T BE MUCH PEACE WE SUSPECT UNTIL MR SAVIMBI AND HIS FOLLOWERS ARE ACCOMMODATED CERTAINLY THE US ISN'T LIKELY TO ACHIEVE WHAT THE SOVIETS COULDN'T PULL OFF AN MPLA VICTORY YET THIS IS THE COURSE BEING URGED ON THE ADMINISTRATION BY MEMBERS OF THE CONGRESSIONAL BLACK CAUCUS RANDALL ROBINSON OF TRANSAFRICA AND VARIOUS OTHER SOLIDARITY GROUPIES IT ALSO SEEMS TO BE THE LEANING OF TONY LAKE THE AFRICANIST NOW RUNNING THE NATIONAL SECURITY COUNCIL AND HIS DEPUTY NANCY SODERBERG A FORMER STAFFER TO TED KENNEDY LAST MONTH IN MOSCOW THE CLINTON ADMINISTRATION GAVE A WINK AND A NOD TO THE RUSSIANS AND PORTUGUESE TO BEGIN SHIPPING ARMS TO THE MPLA EDMUND DEJARNETTE THE CHIEF US DIPLOMAT IN LUANDA IS ENTHUSED ABOUT GETTING INVOLVED AND THERE'S TALK OF BRINGING ANGOLAN OFFICERS OVER FOR MILITARY TRAINING THERE'S ALREADY ENOUGH COMMUNAL PARANOIA IN THE WORLD AND IT WON'T GET BETTER IF THE PARTIES BELIEVE THE US IS AVAILABLE TO BE RECRUITED ON ONE SIDE OR THE OTHER ANGOLA'S WAR HAS BEEN DRAINED OF SUPERPOWER AND IDEOLOGICAL CONTENT AND THE PROPER US ROLE TODAY IS THAT OF HONEST BROKER SEE RELATED LETTER LETTERS TO THE EDITOR ANGOLA'S ELECTIONS OPEN AND DEMOCRATIC WSJ AUG 26 1993 9308020079 YY93 MM08 9308260065 930826 KELLWOOD EXPECTS STRONG PERIOD ST LOUIS KELLWOOD CO SAID IT EXPECTS FISCAL SECONDQUARTER EARNINGS TO RISE BETWEEN 35 AND 40 FROM EARNINGS A YEAR EARLIER OF 74 MILLION OR 54 CENTS A SHARE THE COMPANY WHICH MANUFACTURES AND MARKETS APPAREL AND RELATED SOFT GOODS SAID IT ALSO PROJECTS THAT SALES IN THE QUARTER ENDING OCT 31 WILL INCREASE ABOUT 25 FROM THE 2818 MILLION IN SALES KELLWOOD POSTED IN THE YEAREARLIER PERIOD WILLIAM J MCKENNA CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER ATTRIBUTED THE OUTLOOK TO OVERALL GROWTH IN SALES AND CONTINUED GROWTH IN KELLWOOD'S BRANDED PORTFOLIO OF COMPANIES 9308260064 930826 CAMDEN PROPERTY OVERALLOTMENT HOUSTON CAMDEN PROPERTY TRUST SAID ITS UNDERWRITERS EXERCISED AN OVERALLOTMENT OPTION TO ITS RECENT INITIAL PUBLIC OFFERING COVERING 11 MILLION COMMON SHARES AT 22 A SHARE THE REALESTATE INVESTMENT TRUST SAID IT WILL USE THE ADDITIONAL 229 MILLION IN PROCEEDS FOR APARTMENT COMPLEX ACQUISITIONS AND DEVELOPMENT THE 74 MILLIONSHARE OFFERING WAS UNDERWRITTEN BY KIDDER PEABODY & CO CAMDEN ALSO SAID IT ACQUIRED A 335UNIT APARTMENT COMPLEX IN LEWISVILLE TEXAS FOR 88 MILLION AND IS COMPLETING DUE DILIGENCE ON A PROPOSED ACQUISITION OF FIVE COMPLEXES WITH 1354 UNITS PRIMARILY IN THE DALLAS AREA FOR ABOUT 30 MILLION 9308260063 930826 LETTERS TO THE EDITOR ANGOLA'S ELECTIONS OPEN AND DEMOCRATIC YOUR AUG 2 EDITORIAL ANGOLAN DIVORCE FALSELY ASSERTS THAT THE WAR IN ANGOLA HAS ALWAYS BEEN ETHNIC AND THEN JUSTIFIES PAST US INTERVENTION AND SUPPORT FOR ONE SIDE THAT CLAIMED TO BE ANTICOMMUNIST BUT OPPOSES SUPPORT TODAY FOR THE PARTY THAT WON DEMOCRATIC ELECTIONS DECLARED AS FREE AND FAIR BY THE UNITED NATIONS I WAS AN INTERNATIONAL MONITOR AT THOSE ELECTIONS LAST SEPTEMBER AND MY EXPERIENCE SUPPORTS THE CONTENTION THAT THESE MAY HAVE BEEN THE MOST OPEN AND DEMOCRATIC ELECTIONS HELD IN AFRICA IN RECENT YEARS ALMOST FIVE MILLION ANGOLANS 91 OF THE REGISTERED VOTERS STOOD IN LINE FOR UP TO TWO DAYS TO CAST THEIR FIRST DEMOCRATIC VOTE FOR YOU TO CYNICALLY DISMISS THIS ACT OF DEMOCRACY WITH THE FLICK OF A PEN SENDS A CHILLING MESSAGE TO THOSE STRIVING TO ACHIEVE DEMOCRACY THROUGHOUT THE WORLD THE ETHNIC VOTING PATTERNS IN THIS ELECTION AND THE ETHNIC COMPOSITION OF THE CURRENT ANGOLAN GOVERNMENT UNDERSCORE THE FALLACIOUSNESS OF YOUR ASSERTION THAT THIS IS JUST ANOTHER AFRICAN ETHNIC CONFLICT FINALLY TO SUGGEST THAT THE ANGOLAN CONFLICT IS DRAINED OF IDEOLOGICAL CONTENT IS TO REDUCE THE IDEOLOGY OF DEMOCRACY TO THE HISTORICAL DUSTBIN WHAT MESSAGE DOES THIS SEND TO THE REST OF WORLD WHAT IDEOLOGY OR VALUES DO YOU SUGGEST THAT WASHINGTON SUBSTITUTE IN PLACE OF ITS PRESENT GOAL OF PROMOTING DEMOCRACY 9308260062 930826 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 1/16 NEAR CLOSING BID 3 1/8 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 305 30 TO 44 DAYS 310 45 TO 89 DAYS 311 90 TO 149 DAYS 321 150 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 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 304 ONE MONTH 308 THREE MONTHS 323 SIX MONTHS BANKERS ACCEPTANCES 307 30 DAYS 308 60 DAYS 309 90 DAYS 310 120 DAYS 319 150 DAYS 319 180 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 668 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 665 60 DAYS 675 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 9308260061 930826 LETTERS TO THE EDITOR BANNISTER COLLAPSED ONLY TO RUN AGAIN PAUL GIGOT IN HIS AUG 6 POTOMAC WATCH COLUMN ON THE TRIALS AND TRIBULATIONS OF PRESIDENT CLINTON AND HIS BUDGET OPINES THAT THE BEATING MR CLINTON TOOK TRYING TO PASS THE BILL MAY PERMANENTLY DAMAGE HIM HE SUGGESTED THE BATTLE COULD TURN HIM INTO A LATTERDAY ROGER BANNISTER WHO FAMOUSLY COLLAPSED AFTER HIS FIRST FOURMINUTE MILE MR BANNISTER MR GIGOT WARNS WAS NEVER THE SAME AGAIN AFTER THAT HISTORIC RUN IN FACT MR BANNISTER RECOVERED QUITE NICELY IMPROVING HIS TIME TO 3588 WINNING THE 1954 EUROPEAN CHAMPIONSHIP 1500 METER RACE AND MOST IMPORTANTLY DEFEATING JOHN LANDY WHO PREVIOUSLY HAD BROKEN MR BANNISTER'S WORLD RECORD IN THE DREAM MILE AT THE BRITISH EMPIRE GAMES THEN HE RETIRED TO THE PRACTICE OF MEDICINE IF MR BANNISTER WAS NEVER THE SAME AGAIN AFTER HIS PERFORMANCE ON THAT DANK AND GUSTY MAY AFTERNOON IN OXFORD THEN NOW THAT THE BUDGET BATTLE IS OVER PRESIDENT CLINTON CAN ONLY HOPE HE IS AS LUCKY AS MR BANNISTER 9308260060 930826 MARKETING YUENGLING'S SUCCESS DEFIES CONVENTION BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL POTTSVILLE PA DON'T TELL DICK YUENGLING THAT THE ONLY WAY TO GAIN MARKET SHARE IN THE FLAT BEER MARKET IS TO EXPAND SALES TERRITORY ADVERTISE LIKE CRAZY AND SLASH PRICES HE HAS DONE EXACTLY THE OPPOSITE AT DG YUENGLING & SONS THE NATION'S OLDEST BREWERY AND HIS SALES HAVE SKYROCKETED MR YUENGLING THE FIFTH GENERATION OF HIS FAMILY TO RUN THE 164YEAROLD BREWERY NOW HAS TROUBLE MAKING ENOUGH BEER TO SATISFY RISING DEMAND WE WERE CONSIDERED A CHEAP COALREGION BEER IN THE 1980S MR YUENGLING SAYS WE'VE CHANGED THAT OVERNIGHT LIKE A HANDFUL OF OTHER OLD REGIONAL BREWERIES YUENGLING WHICH FOR DECADES OPERATED IN RELATIVE OBSCURITY OUT OF THIS OLD COALMINING TOWN IS ENJOYING A RESURGENCE THE REASONS INCLUDE A RISE IN REGIONAL PRIDE THE GROWING POPULARITY OF MICROBREWS AND A SLIGHT SLIPPAGE IN THE POPULARITY OF THE TOP NATIONAL BRANDS BUT UNLIKE MOST OF THE OTHER SURVIVING REGIONAL BREWERIES YUENGLING HAS ENJOYED A REVIVAL WITHOUT SELLING OUT TO A BIG BREWER BREWING BEERS UNDER CONTRACT FOR COMPANIES LIKE BOSTON BEER CO WHICH MAKES SAMUEL ADAMS BRANDS OR LOWERING ITS PRICES TO THIS DAY IT'S THE ONLY BRAND OF BEER WITH NO REBATE OR COUPON IN OUR MARKET SAYS ANTHONY CASINELLI SALES MANAGER FOR L&M BEVERAGES CO THE PHILADELPHIA DISTRIBUTOR FOR YUENGLING THE STORY OF YUENGLING'S TRANSFORMATION IS ONE OF PERSEVERANCE LUCK AND THE WILLINGNESS OF AN OLD BREWERY TO LEARN NEW MARKETING TRICKS MR YUENGLING'S GREATGREAT GRANDFATHER FOUNDED THE BREWERY ON A TREECOVERED HILL IN THIS CENTRAL PENNSYLVANIA TOWN IN 1829 JUST AFTER THE COAL MINES HAD OPENED OVER THE NEXT FOUR GENERATIONS OF YUENGLING FAMILY BREWERS MORE THAN 400 PENNSYLVANIA BREWERIES WERE WIPED OUT BY PROHIBITION COMPETITION FROM EMERGING NATIONAL BREWERS AND THEIR OWN FAILURE TO INVEST IN NEW EQUIPMENT FOR THEIR BREWERIES IN 1985 WHEN MR YUENGLING RETURNED FROM HIS BEERDISTRIBUTING BUSINESS TO THE FAMILY BUSINESS AFTER HIS FATHER FELL ILL IT LOOKED LIKE YUENGLING WAS HEADED FOR THE SAME FATE THE BREWERY'S BEERS WERE BEING DISCOUNTED TO RETAIN MARKET SHARE EVEN THE COMPANY'S VENERABLE PORTER A DARK BEER WAS SELLING AT A DISCOUNT TO ITS REGULAR PRICE BUT SALES STILL WERE SLIPPING AND THE BEER WAS BEING KEPT ALIVE BY RURAL PENNSYLVANIA DRINKERS WHO CONSUMED UPWARD OF 90 OF THE PRODUCT NOT WANTING TO BE THE YUENGLING WHO PRESIDED OVER THE END OF THE FAMILY BREWING BUSINESS MR YUENGLING NOW 50 YEARS OLD INVESTED ALL OF THE COMPANY'S EARNINGS IN UPDATING THE BREWERY AND ADDING NEW EQUIPMENT NOTING THE SUCCESS OF LIGHT BEERS AND SUCH NEW FULLERFLAVORED BRANDS AS ANCHOR STEAM BREWED BY ANCHOR STEAM BREWING CO AND SAMUEL ADAMS HE ASKED HIS BREWMASTER TO ADD SIMILAR BREWS TO THE COMPANY'S TRADITIONAL LINE OF BEER ALE AND PORTER LATER HE ADDED BLACK AND TAN A MIXTURE OF REGULAR BEER AND PORTER BUT EVEN WITH THE NEW BEERS THE COMPANY LACKED THE RIGHT IMAGE TO SURVIVE MR YUENGLING'S DISTRIBUTORS TOLD HIM THEY URGED HIM TO HIRE A MARKETING PERSON DAVID CASINELLI MR CASINELLI THE 33YEAROLD SON OF THE SALES MANAGER AT L&M IN PHILADELPHIA PERSUADED HIS NEW BOSS TO HIRE PROFESSIONALS TO DESIGN NEW LABELS THE LABELS WERE GIVEN AN ARTSY NOSTALGIC LOOK AND MR CASINELLI FASHIONED THE COMPANY'S PROMOTIONS TO FOCUS ON THE BREWERY'S PLACE IN PENNSYLVANIA HISTORY AND REGIONAL PRIDE I DON'T EVEN WANT TO KNOW HOW MUCH IT COST SAYS MR YUENGLING THREE YEARS LATER BUT DAVID MADE ME DO THINGS THAT BUILT A NEW IMAGE FOR OUR BRANDS USING THE NEW LOOK WITHOUT ALTERING THE ORIGINAL FORMULAS FOR YUENGLING'S BEERS MR CASINELLI WAS ABLE TO SWITCH THE BRAND TO MORE AGGRESSIVE WHOLESALERS THROUGHOUT YUENGLING'S EASTERN SEABOARD TERRITORY AND HE PROMOTED ANOTHER NEW MARKETING STRATEGY HE RAISED THE PRICE TO ABOVEPREMIUM LEVELS AND PUSHED IT AT HIGHEND ONPREMISE ACCOUNTS IN SUCH PLACES AS PHILADELPHIA'S HISTORIC DISTRICT AND PENN'S LANDING AREA WHICH GAINED THE BEER MORE CACHET HE SUCCEEDED IN GAINING TAP HANDLES UP AND DOWN THE WATERFRONT NIGHTCLUBS AT PENN'S LANDING SUCH AS THE CHART HOUSE ROCK LOBSTER AND ELI'S PIER 34 AND IN HOTELS LIKE THE SOCIETY HILL SHERATON I CONVINCED THEM THERE'S A CROSSMARKETING IDEA HERE MR CASINELLI SAYS LET'S GET SOME OF THAT HOMETOWN PRIDE BACK FOR EXAMPLE HE WORKED WITH A CONCESSIONAIRE AT THE PHILADELPHIA AIRPORT TO BUILD DISPLAYS THAT PROMOTED THE HISTORICAL ATTRACTIONS OF PHILADELPHIA ALONG WITH THE HISTORICAL SIGNIFICANCE OF THE NATION'S OLDEST BREWERY MR YUENGLING ALSO GOT LUCKY TAKING OVER IN THE MIDST OF THE MICROBREWERY CRAZE IN WHICH SOME BEER DRINKERS ARE SEARCHING FOR ALTERNATIVES TO THE SAME OLD NATIONAL BRANDS SUDDENLY THE BEER THAT HAD BEEN KEPT ALIVE BY POTTSVILLE LOYALISTS AND AGING DRINKERS AROUND THE STATE BECAME COOL TO YOUNG DRINKERS TOO IT IS ALL STEVE KLUSKA 22 YEARS OLD OF SOUTH PHILADELPHIA DRINKS NOW MY FRIEND GOT ME INTO THIS AT A GRATEFUL DEAD CONCERT HE SAYS HOLDING UP HIS YUENGLING LAGER AT ELI'S PIER 34 ONE RECENT EVENING HE'S TRAVELED TO IRELAND AND SAYS THIS BLOWS AWAY ANYTHING HE TRIED OVER THERE AS SALES CLIMBED TO 230000 BARRELS THIS YEAR FROM 127000 BARRELS IN 1986 THE BREWERY COULDN'T MAKE ENOUGH BEER TO KEEP IT ON LOCAL SHELVES THE SHORTAGE PROMPTED MR YUENGLING TO CUT BACK HIS PRINT AND BROADCAST ADVERTISING TO ABOUT 2 A BARREL FROM ABOUT 3 YOU CAN'T FUEL THE FIRE WHEN WE CAN'T GET THEM BEER ANYWAY HE SAYS THAT DIDN'T SOLVE HIS PUBLIC RELATIONS PROBLEM WITH HOMETOWN FANS HOWEVER SIGNS AT LOCAL SCHUYLKILL COUNTY BEER DISTRIBUTORS WHERE BEER IS SOLD TO THE PUBLIC IN PENNSYLVANIA BLAMED THE SHORTAGES ON EXPORTS OF BEER OUTSIDE THE TRADITIONAL LOCAL MARKET INCLUDING NEW YORK IRATE BARTENDERS AND DISTRIBUTORS CALLED LOCAL NEWSPAPERS TO COMPLAIN IT WAS A LITTLE HAIRY SAYS DIANE ADAMS THE COUNTY SALES REPRESENTATIVE FOR THE BREWERY WHO HAD TO FACE THE ANGRY CUSTOMERS PEOPLE WERE UP IN ARMS RATHER THAN LOSE THE LOCAL MARKET MR YUENGLING QUIT SHIPPING BEER TO DISTRIBUTORS IN MAINE MASSACHUSETTS RHODE ISLAND AND PARTS OF OTHER STATES TO TRY TO MEET THE DEMAND IN PENNSYLVANIA HE IS NOW SELLING BEER ONLY IN PENNSYLVANIA NEW JERSEY BALTIMORE WASHINGTON AND SOME PARTS OF WEST VIRGINIA HE ALSO KEPT THE BEER AT ITS ORIGINAL LOWER PRICE IN ITS HOME COUNTY THUS YUENGLING DRINKERS IN POTTSVILLE CAN GET A YUENGLING BREW AT KEN'S PLACE IN THE MOUNT CARBON NEIGHBORHOOD FOR 40 CENTS COMPARED WITH 250 AT ELI'S ON PENN'S LANDING WORKING WITHIN THE CONFINES OF THE BREWER'S HILLSIDE LOCATION HERE MR YUENGLING IS TRYING TO SOLVE HIS SUPPLY PROBLEM BY BUILDING STORAGE AND FINISHING TANKS THAT WILL ADD ANOTHER 50000 BARRELS TO CAPACITY BUT HE IS PROCEEDING CAUTIOUSLY REMEMBERING THE 1950S WHEN FINANCES WERE SO TIGHT AT THE BREWERY THAT REVENUE BARELY COVERED THE PAYROLL CHECKS I STILL REMEMBER THE BAD DAYS HE SAYS I DON'T WANT TO GET IN A POSITION OF HAVING A CAPACITY OF 500000 BARRELS A YEAR AND SELLING ONLY 200000 9308260059 930826 MONEYFUND YIELDS ARE LITTLE CHANGED NEW YORK YIELDS ON TAXABLE MONEYMARKET MUTUAL FUNDS WERE LITTLE CHANGED BUT INSTITUTIONAL INVESTORS ADDED BILLIONS OF DOLLARS TO ASSETS IN THE LATEST WEEK IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS EASED TO 267 FROM 268 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER ASSETS OF 607 TAXABLE FUNDS INCREASED BY 437 BILLION TO 47705 BILLION THE NEWSLETTER REPORTED INSTITUTIONAL INVESTORS ADDED 552 BILLION TO ASSETS WHILE INDIVIDUAL INVESTORS WITHDREW 115 BILLION WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ATTRIBUTED THE INCREASE IN INSTITUTIONAL ASSETS TO FALLING INTEREST RATES ON DIRECT INVESTMENTS MAKING MONEY FUNDS MORE ATTRACTIVE AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER OR SHORTTERM CORPORATE IOUS AND TREASURY BILLS LENGTHENED BY ONE DAY TO 63 DAYS THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS REMAINED AT 264 IN THE LATEST WEEK THE AVERAGE 30DAY SIMPLE YIELD SLIPPED TO 264 FROM 265 WHILE THE AVERAGE 30DAY COMPOUND YIELD REMAINED UNCHANGED AT 268 YIELDS ON TAXEXEMPT FUNDS WERE UNCHANGED IN THE LATEST WEEK THE AVERAGE SEVENDAY COMPOUND YIELD REMAINED AT 2 THAT'S EQUIVALENT TO A TAXABLE 313 FOR AN INVESTOR IN THE 36 TAX BRACKET AND TO 331 FOR SOMEONE PAYING 396 IN TAXES ASSETS OF 326 TAXFREE FUNDS INCREASED BY 1244 MILLION TO 10221 BILLION ACCORDING TO MONEY FUND REPORT THE TAXEXEMPT FUNDS' AVERAGE PORTFOLIO MATURITY REMAINED AT 67 DAYS 9308260058 930826 JAPAN WILL ACCEPT APPLES US TRADE OFFICIAL SAYS YAKIMA WASH AP THE TOP TRADE OFFICIAL FOR THE DEPARTMENT OF AGRICULTURE SAID HE WAS ASSURED THAT US APPLES FROM NEXT YEAR'S CROP WILL BE ALLOWED INTO JAPAN UNDERSECRETARY EUGENE MOOS SAID HE MET WITH HIS COUNTERPART IN JAPAN AND WAS TOLD THAT NO ADDITIONAL OBSTACLES WILL BE RAISED I WON'T USE THE WORD GUARANTEE' MR MOOS SAID WE STILL MUST MEET THEIR STANDARDS I HAVE BEEN ASSURED BY OUR SCIENTISTS THAT WE CAN HE SAID HE HOPES TRADE SANCTIONS WON'T HAVE TO BE USED TO OPEN A DOOR BARRED SINCE 1971 BY JAPAN'S CONCERNS ABOUT APPLE PESTS AND DISEASE THIS YEAR'S CROP WON'T REACH JAPAN BECAUSE OFFICIALS THERE NEED MORE TIME TO IMPLEMENT INSPECTION PROCEDURES MR MOOS'S COMMENTS CAME AT THE OPENING OF THE SECOND ANNUAL AGRICULTURAL SHOWCASE A THREEDAY TRADE SHOW THAT HAS BROUGHT NEARLY 200 BUYERS FROM 14 COUNTRIES TO MEET FACETOFACE WITH FARMERS AND FOOD PROCESSORS IN THE NORTHWEST 9308260057 930806 POTOMAC WATCH CLINTON REVERSES REAGAN IN MORE WAYS THAN ONE BY PAUL A GIGOT HOWEVER CONGRESS VOTES IN PUBLIC THE BEST INSIGHT INTO PRESIDENT CLINTON'S TAX BILL IS WHAT MEMBERS SAY WOULD HAPPEN ON A SECRET BALLOT ABOUT 80 OF REPUBLICANS WOULD VOTE FOR IT WHILE AS MANY DEMOCRATS WOULD OPPOSE IT I WANT THIS THING TO PASS CHIRPS A STRATEGIST AT THE REPUBLICAN NATIONAL COMMITTEE THE BEST OUTCOME FOR BILL CLINTON NOW IS FOR HIS PLAN TO FAIL THEN HAVE HIM CALL BOB DOLE'S BLUFF AND DIVIDE REPUBLICANS OVER TAXES ADDS A VETERAN HOUSE REPUBLICAN OKLAHOMA'S DAVID BOREN A JEREMIAH BANISHED FOR HIS BRAVE OPPOSITION IS ONE OF THE FEW DEMOCRATS WHO WILL SAY THIS PUBLICLY BUT PLENTY OF OTHERS ADMIT IT PRIVATELY PEOPLE CAN'T AGREE IF THIS IS GOOD POLICY SAYS ONE WELLKNOWN LIBERAL DEMOCRATIC STRATEGIST BUT EVERYONE AGREES IT'S BAD POLITICS THAT BACKGROUND CANDOR REVEALS THE FEARSOME PRICE MR CLINTON HAS PAID FOR THIS BILL EVEN IF HE EKES OUT A VICTORY THIS WHITE HOUSE HAS INVITED COMPARISONS TO RONALD REAGAN'S FIRST YEAR SO HERE GOES MR REAGAN EMERGED FROM HIS 1981 BUDGET BATTLE ENHANCED IN STATURE FOR HAVING PUT HIS STAMP ON A CONGRESS CONTROLLED IN PART BY THE OPPOSITION WIN OR LOSE MR CLINTON EMERGES DIMINISHED HAVING LET A CONGRESS CONTROLLED BY HIS OWN PARTY PUT ITS STAMP ON HIM MR REAGAN'S APPROVAL RATING IN LATE JULY 1981 WAS 60 10 POINTS HIGHER THAN IN JANUARY MR CLINTON'S IS NOW 43 OR LESS 10 POINTS LOWER THAN HIS JANUARY RATING MR REAGAN WENT ON TV TO PERSUADE VOTERS TO ROLL CONGRESS MR CLINTON WENT ON TV THIS WEEK SO A SINGLE UNRENOWNED SENATOR ARIZONA'S DENNIS DECONCINI COULD PERSUADE DOUBTING VOTERS THAT HE HAD ROLLED MR CLINTON CAST YOUR MIND BACK TO FEB 18 THE DAY AFTER THE STATE OF THE UNION THE CLINTON STRATEGY WAS TO REVERSE REAGANOMICS BY RAISING TAXES TO REDUCE THE DEFICIT AND TO INVEST BOTH TO JOLT THE ECONOMY AND TO MAKE GOVERNMENT ACTIVISM CREDIBLE AGAIN FIRST THE STIMULUS SPENDING DIED IN PART A VICTIM OF MR CLINTON'S OWN DEFICIT RHETORIC BUT THE BIG BLOWUP WAS THE ENERGY TAX WHICH WAS SUPPOSED TO BE THE STEALTH REVENUE STREAM FOR THE 1990S ITS DEMISE REPLACED ONLY BY A MEASLY GAS TAX HAS LEFT MR CLINTON WITH THE WORST OF BOTH WORLDS HE GETS THE BLAME FOR TAXING THE MIDDLE CLASS 68 IN THE LATEST CNNUSA TODAY POLL BUT HE DOESN'T GET THE REVENUES TO SPEND THIS MAY BE WHY IN A FORTHCOMING FORTUNE MAGAZINE INTERVIEW HE ONCE AGAIN FLOATS A VALUEADDED TAX ANOTHER WAY TO SOAK THE MIDDLE CLASS IN THE END HIS PROGRAM HAS BEEN REDUCED TO RAW PAIN DEFICIT REDUCTION FOR ITS OWN SAKE THE TRIBUNE OF THE FORGOTTEN MIDDLE CLASS HAS SOMEHOW BECOME A SPOKESMAN FOR RICH BONDHOLDERS WHO MIGHT RAISE INTEREST RATES IF TAXES AREN'T RAISED ON EVERYONE REAGANOMICS IS INDEED GONE BUT SO IS ANY CLINTON VISION IT'S ESPECIALLY REVEALING THAT THE DEMOCRATS MOST UPSET WITH THIS BUDGET ARE THE BORENS THE DAVE MCCURDYS AND THE OTHER NEW DEMOCRATS WHO WERE HIS NATURAL ALLIES THEY WONDER WHAT HAPPENED TO THE GROWTH DEMOCRAT OF THE CAMPAIGN WE FEEL THAT WE ELECTED HIM AND THE LIBERALS STOLE HIM SAYS LOUISIANA REP BILLY TAUZIN WHO SUPPORTED THE BUDGET ONCE BUT NOW OPPOSES IT MOREOVER THE WAY MR CLINTON FELL INTO THIS TRAP HAS ONLY REINFORCED PUBLIC CYNICISM ABOUT GOVERNMENT AND HIS OWN TRUSTWORTHINESS THE OUTSIDER HAS BECOME AN INSIDER A HOSTAGE TO SENATE LOGROLLING THAT HAS MADE HIM SEEM WEAK AND MALLEABLE AND THE CANDIDATE WHO KEPT CONGRESS AT ARM'S LENGTH HAS BECOME THE PRESIDENT WHO ANSWERED TO ITS EVERY BECK AND CALL THE CONCEIT OF HIS SUPPORTERS OF COURSE IS THAT MR CLINTON IS SUFFERING BECAUSE HE WAS FORCED TO SELL CASTOR OIL WHILE MR REAGAN WAS SELLING SNAKE OIL BUT EVEN IF THIS WERE TRUE THAT IS NO CONSOLATION TO DEMOCRATS HOPING TO RESTORE THE POLITICAL LUSTER OF GOVERNMENT THEIR MAN HAS TAKEN A BEATING BIG ENOUGH TO THROW THEIR ENTIRE AGENDA HEALTH CARE LABOR INTO DOUBT CERTAINLY BOB DOLE WILL NOW BE IN THE ROOM BEFORE ANY HEALTH BILL PASSES IF HE PASSES THIS HE'LL BE LIKE ROGER BANNISTER AFTER HE FINISHED THE FOURMINUTE MILE COLLAPSING AT THE FINISH LINE SAYS THE LIBERAL STRATEGIST MR BANNISTER WAS NEVER THE SAME AGAIN MR CLINTON HAS ALBEIT UNINTENTIONALLY ALSO GIVEN AN OPENING TO REPUBLICANS HE HAS BEGUN TO SMUDGE THEIR FINGERPRINTS OFF GEORGE BUSH'S 1990 BUDGET DEAL REPLACING THEM WITH HIS OWN AND HE HAS RESURRECTED THE TAX ISSUE IT'S TRUE THAT REPUBLICANS ARE BEING CALLED OBSTRUCTIONISTS BUT BY THE SAME CRITICS WHO USED TO FRET THAT NO ONE IN WASHINGTON WAS ACCOUNTABLE THIS TIME THANKS IN PART TO BOB DOLE'S FINEST HOUR VOTERS WILL KNOW WHO'S RESPONSIBLE REPUBLICANS WILL HAVE HELPED THEMSELVES IF THEY CAN NOW MOVE ON TO SHOW THAT THEY STAND FOR SOMETHING OTHER THAN OPPOSITION EG ECONOMIC GROWTH DEMOCRATS WILL HAVE TO FIND SOLACE IN THE FACT THAT MR CLINTON HAS 3 1/2 YEARS TO RECOVER EVEN IF CONGRESS HAS ONLY 15 MONTHS THEY CAN ALSO WAIT FOR THE BOOM HE PROMISED WHICH WILL PRESUMABLY BE BETTER THAN THE BOOM MR BUSH PROMISED AND MR CLINTON DOES RETAIN HIS POWER TO APPOINT AMBASSADORS WHICH IS A GOOD THING FOR MR DECONCINI WHO MAY NEED WORK AFTER 1994 SEE RELATED LETTER LETTERS TO THE EDITOR BANNISTER COLLAPSED ONLY TO RUN AGAIN WSJ AUG 26 1993 9308060098 YY93 MM08 9308260056 930826 COUNTERPOINT IN DEFENSE OF JACKSON STEPHENS BY PAUL CRAIG ROBERTS AMERICA'S QUAGMIRE OF REGULATIONS SWALLOWS UP THE TIME AND ENERGY OF VENTURE CAPITALISTS AND CREATES ABUNDANT OPPORTUNITIES FOR THE REGULATORY POLICE TO ABUSE THEIR POWER I OFTEN WRITE ABOUT SUCH ABUSES BUT HAVE NEVER BEEN AS CLOSE TO THE FACTS AS IN THE CASE OF THE FEDERAL RESERVE'S CONTINUING INVESTIGATION OF LITTLE ROCK INVESTMENT BANKER AND VENTURE CAPITALIST JACKSON STEPHENS I KNOW JACK STEPHENS WE SIT TOGETHER ON A UNIVERSITY BOARD AND HE HAS SUPPORTED A RESEARCH INSTITUTE OF WHICH I AM A TRUSTEE I AM CONFIDENT OF THE FOLLOWING FACTS WHICH CONTRAST WITH THE PORTRAIT OF WRONGDOING AND INFLUENCEBUYING PAINTED BY THIS NEWSPAPER IN ITS STORIES AND EDITORIALS IN APRIL 1985 WORTHEN BANK & TRUST THE LEAD BANK OF WORTHEN BANKING CORP ENTERED INTO A REPURCHASE AGREEMENT WITH A GOVERNMENT SECURITIES DEALER THAT PROMPTLY WENT BANKRUPT THUS WIPING OUT THE BANK'S CAPITAL WITH ARKANSAS'S LARGEST BANK FACED WITH IMMEDIATE CLOSURE JACK STEPHENS WAS APPROACHED TO RECAPITALIZE IT MR STEPHENS WORKED OUT THE TERMS OF THE CAPITAL INFUSION WITH THE TWO TOP FEDERAL RESERVE OFFICIALS IN WASHINGTON BILL TAYLOR DIRECTOR OF SUPERVISION AND REGULATION AND MIKE BRADFIELD GENERAL COUNSEL THE BANK WITH MORE THAN 2 BILLION IN FEDERALLY INSURED DEPOSITS AND MANY UNINSURED DEPOSITS THAT WOULD HAVE THREATENED OTHER BANKS WAS SAVED OR SO IT SEEMED WHEN THE NEW MANAGEMENT TEAM TOOK OVER IT FOUND THAT UNBEKNOWNST TO MR STEPHENS THE BANK HAD 130 MILLION IN BAD LOANS ON ITS BOOKS GOOD MANAGEMENT SAVED THE BANK A SECOND TIME AND THE LOANS WERE WRITTEN OFF BY 1990 IT WAS CLEAR TO EVERYONE THAT THE BANK HAD MADE AN AMAZING RECOVERY AND WAS AN OUTSTANDING SUCCESS EARLY IN 1992 WORTHEN TOLD THE ST LOUIS FED THAT IT WANTED TO ACQUIRE UNION OF ARKANSAS CORP THE FOURTHLARGEST BANKING COMPANY IN THE STATE IN MARCH 1992 THE ST LOUIS FED BEGAN EXAMINING WORTHEN FOR THE UNION PURCHASE ITS INVESTIGATION HOWEVER TOOK AN UNUSUAL DIRECTION AND FOCUSED ON MR STEPHENS'S OWNERSHIP OF WORTHEN RATHER THAN THE BANK'S FINANCIAL CAPACITY TO ABSORB UNION THE INFORMAL INVESTIGATION WENT ON FOR A YEAR BEFORE THE FED'S GOVERNORS APPROVED WORTHEN'S ACQUISITION OF UNION ON MARCH 31 1993 THE SAME DAY THE FED TOLD WORTHEN IT HAD BEGUN A FORMAL INVESTIGATION OF THE STEPHENS FAMILY'S HOLDINGS IN WORTHEN DESPITE THE DILUTION OF THESE HOLDINGS TO 26 FROM 36 AS A RESULT OF THE UNION ACQUISITION SOURCES FAMILIAR WITH THE INVESTIGATION SAY IT HAS BECOME A FISHING EXPEDITION UNRELATED TO THE OPERATION OF THE WORTHEN HOLDING COMPANY THE FED IS LOOKING FOR LEONA HELMSLEY'S MAID IS THE WAY ONE SOURCE PUT IT THIS IS EXTRAORDINARY THERE COULD BE NO GLASSSTEAGALL VIOLATION BECAUSE THE FED ITSELF HAD WORKED OUT THE TERMS OF MR STEPHENS'S CAPITAL INFUSION IF INSTEAD THE FED HAS REASONS TO SUSPECT MR STEPHENS OF VIOLATING THE BANK HOLDING COMPANY ACT BY SECRETLY HOLDING MORE THAN THE PERMITTED OWNERSHIP SHARE THROUGH NOMINEES OR STOCK PARKED WITH INSTITUTIONAL INVESTORS THEN THE FED WAS NEGLIGENT IN APPROVING THE UNION ACQUISITION WHAT SEEMS TO HAVE HAPPENED IS AS FOLLOWS ACCORDING TO WORTHEN BOARD MEMBERS THE ST LOUIS FED FELT BYPASSED WHEN MR STEPHENS AND FED OFFICIALS IN WASHINGTON WORKED OUT THE TERMS OF THE 1985 CAPITAL INFUSION AS WORTHEN IS IN ITS REGULATORY DISTRICT MIFFED AT WASHINGTON ST LOUIS HAS A VESTED INTEREST IN FINDING INCOMPETENCE OR WRONGDOING IN THE WAY THE HOME OFFICE HANDLED THE WORTHEN BAILOUT WHEN BILL TAYLOR DIED IN 1992 AND MIKE BRADFIELD LEFT FOR PRIVATE PRACTICE THE ST LOUIS FED GOT ITS CHANCE TO REOPEN THE MATTER THE ST LOUIS FED IS ALSO MIFFED AT CURT BRADBURY WORTHEN'S CEO AS A BANK WORTHEN IS EXAMINED BY THE COMPTROLLER OF THE CURRENCY AS A HOLDING COMPANY IT IS EXAMINED BY THE FED DURING THE YEARS OF THE BANK'S RECOVERY THE COMPTROLLER OF THE CURRENCY RECOGNIZED THE PROGRESS AND ACCOMMODATED THE PLANS OF THE BANK'S MANAGEMENT IN CONTRAST THE ST LOUIS FED REFUSED TO SEE PROGRESS AND KEPT THE MOST STRINGENT CONTROLS ON THE ACTIVITIES OF THE COMPANY ACCORDING TO WORTHEN BOARD MEMBERS AT ONE POINT MR BRADBURY COMPLAINED TO THE ST LOUIS FED THAT IT WAS HOLDING THE RECAPITALIZATION MONEY HOSTAGE AND KEEPING THE BANK AT A COMPETITIVE DISADVANTAGE BY BLOCKING ITS PLANS MATTERS CAME TO A HEAD IN 1989 WHEN THE FED AND THE COMPTROLLER OF THE CURRENCY IN AN INTERAGENCY TURF BATTLE BOTH CONDUCTED AN EXAMINATION OF THE WORTHEN HOLDING COMPANY THE SCOPE OF THE EXAMS WAS THE SAME BUT THE EXAMINERS CAME TO TOTALLY DIFFERENT CONCLUSIONS WITH THE COMPTROLLER'S EXAM BEING VERY POSITIVE AND THE ST LOUIS FED'S VERY NEGATIVE ST LOUIS FED PRESIDENT THOMAS MELZER CAME TO A WORTHEN BOARD MEETING TO SUMMARIZE THE RESULTS OF THE FED'S EXAM WORTHEN BOARD MEMBERS CONFIRM THAT AT THE MEETING HE WAS CONFRONTED WITH THE COMPTROLLER'S EXAM AND ASKED TO EXPLAIN THE DIFFERENCES MATTERS BECAME VERY TENSE AND MR MELZER COMPLAINED THAT HE WAS AMBUSHED THE SURMISE OF MEMBERS OF THE INDEPENDENT WORTHEN BOARD WHO RESENT THE ST LOUIS FED'S ASSUMPTION THAT THEY ARE CONTROLLED BY MR STEPHENS IS THAT MR MELZER CARRIES HIS GRUDGE TO THIS DAY MR MELZER CAME TO THE ST LOUIS FED FROM WALL STREET WHICH HAS ITS OWN PROBLEMS WITH MR STEPHENS FOR EXAMPLE ONE OF STEPHENS INC'S PRODUCTS IS STEPHENS LINK WHICH PUT SMALL BANKS IN THE BUSINESS OF SECURITIES DISTRIBUTION LAST FALL THE FED UNDER PRESSURE TO BRING ITS INFORMAL INVESTIGATION TO A CLOSE LEAKED A STORY TO A JOURNAL REPORTER THE STORY WHICH RAN IN OCTOBER WAS DESIGNED TO RAISE ALL SORTS OF SUSPICIONS ABOUT MR STEPHENS AND WORTHEN DESPITE THE FED'S OWN INVESTIGATION THAT UNCOVERED NO SUPPORTING FACTS FOR THE LEAKED STORY THIS STORY APPARENTLY WAS THEN USED TO JUSTIFY THE FORMAL INVESTIGATION ANNOUNCED THE DAY THE BOARD OF GOVERNORS APPROVED THE UNION ACQUISITION BY WORTHEN A JOURNAL EDITORIAL THEN STIRRED THE POT BY FANTASIZING THAT MR STEPHENS WAS BUYING INFLUENCE FROM BILL CLINTON THE FED CLAIMS TO HAVE FOUND A GLASSSTEAGALL VIOLATION IN THE STEPHENS FAMILY OWNERSHIP OF THE SMALL FIRST NATIONAL BANK IN STUTTGART ARK THAT BANK IS TOTALLY UNRELATED TO WORTHEN MOREOVER THE VIOLATION WAS APPROVED IN WRITING IN 1979 BY THE OFFICE OF THE COMPTROLLER OF THE CURRENCY ARMED WITH THE COMPTROLLER'S APPROVAL AND AN INDEPENDENT LEGAL OPINION THAT THE CONFIGURATION OF OWNERSHIP WAS LEGAL THE STEPHENS FAMILY HAS OPENLY OWNED 60 OF THE SMALL BANK FOR 14 YEARS AT THE INSISTENCE OF MR MELZER THE FED HAS TIED UP WORTHEN FOR TWO YEARS TO THE BENEFIT OF THE BANK'S COMPETITORS AND HAS DONE ITS BEST TO DAMAGE THE PROMINENT AND SUCCESSFUL 60YEAROLD INVESTMENT BANKING FIRM OF STEPHENS INC A FULLSCALE INVESTIGATION OF THIS ABUSE OF POWER IS CALLED FOR MR ROBERTS IS AT THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES IN WASHINGTON 9308260055 930826 LEISURE & ARTS ART CRIME UPDATE AN INHERITANCE FOUND THOSE FAKE DALIS BY CONSTANCE LOWENTHAL VASILIOS MARMARAS THE OWNER OF PANCAKE HEAVEN IN SAN FERNANDO CALIF DECORATED HIS ESTABLISHMENT WITH REPRODUCTIONS OF FRENCH IMPRESSIONIST PAINTINGS TWO OF HIS REGULARS FIGURED THAT HE KNEW ART AND WAS A WEALTHY MAN SO THEY HOPED HE COULD HELP THEM SELL SOME PICTURES THEY HAD BY PICASSO DEGAS MODIGLIANI AND CHAGALL BUT THE PICTURES WERE HOT AND MR MARMARAS WAS ARRESTED ON AUG 17 AND CHARGED WITH ATTEMPTING TO SELL STOLEN ART HE WAS RELEASED ON 10000 BAIL HIS REGULARS HAD BEEN ARRESTED A WEEK EARLIER AFTER THE FEDERAL BUREAU OF INVESTIGATION AND THE LOS ANGELES POLICE DEPARTMENT FOUND EIGHT PAINTINGS BEHIND A FALSE WALL IN THE CHATSWORTH CALIF HOME OF PETER MACKENZIE AND IN A RAID LATER THAT NIGHT FOUND A NINTH WORK SLIPPED IN A PILLOWCASE IN THE NEARBY HOME OF ALAN R MCARTHUR BOTH WERE CHARGED IN THE THEFT OF THE NINE WORKS FROM A STORAGE COMPANY IN NORTHRIDGE CALIF AND ARE IN JAIL HAVING FAILED TO MEET THE 100000 BAIL SET FOR EACH OF THEM THE RECOVERED ART BELONGS TO EVA WEISAGER WHO INHERITED IT ALL FROM HER SISTER SHE SAID SHE PUT THE PICTURES IN STORAGE BECAUSE HER APARTMENT IS TOO SMALL MS WEISAGER DISCOVERED THE THEFT EARLY LAST YEAR ON A RARE VISIT TO CHECK HER LOCKER THE FBI VALUED THE WORKS AT 9 MILLION A THIEF WHO ENTERED THE BRITISH MUSEUM THROUGH A SKYLIGHT ON THE NIGHT OF FRIDAY JULY 23 MADE OFF WITH A GROUP OF LATE ROMAN SILVER COINS INTAGLIO GEMS AND JEWELRY THE ITEMS HAD BEEN IN THE MUSEUM'S COLLECTION FOR ABOUT 100 YEARS AND MUSEUM OFFICIALS THOUGHT THEY COULD FETCH AS MUCH AS 250000 375000 IF THEY WERE LEGITIMATELY FOR SALE THREE DAYS LATER PERHAPS ENCOURAGED BY THE SUCCESS OF HIS FIRST EXPLOIT THE MAN REPEATED HIS STRATEGY THIS TIME IN MONDAY'S WEE HOURS THE SECURITY SYSTEM TRIGGERED BY INTERIOR MOTION DETECTORS EFFECTIVELY TRAPPED THE MAN INSIDE THE MUSEUM IT TOOK POLICE AND THEIR DOGS SEVERAL HOURS WHILE A HELICOPTER HOVERED IN READINESS TO FIND AND ARREST THE MAN WHO ALLEGEDLY WAS CARRYING GREEK AND ROMAN RINGS AND BROOCHES THE MAN WHOSE NAME HAS NOT BEEN RELEASED WAS BOOKED AT THE HOLBORN STATION AT 4 AM AND HAS REPORTEDLY ADMITTED THE FIRST THEFT THAT SAME NIGHT POLICE ARRESTED TWO OTHER MEN WHO HAD ALLEGEDLY PURCHASED THE FIRST NIGHT'S HAUL MOST OF WHICH WAS RECOVERED KEN WRIGHT OF THE BRITISH MUSEUM SAYS A FEW BASEMETAL COINS AND AN ANCIENT BETROTHAL RING MADE OF GOLD ARE STILL MISSING THINKING THE PICTURES MIGHT BE OF SOME VALUE BUT STILL APPARENTLY UNAWARE OF THEIR ILLUSTRIOUS AUTHORSHIP MR GROVES TOOK THEM TO SOTHEBY'S BOND STREET LUCY HODSON A BRITISHPICTURES SPECIALIST RECOGNIZED THE FINE PORTRAITS AS WORKS BY THE 18THCENTURY ARCHRIVALS BUT WORRIED THAT MR GROVES WASN'T THE TRUE OWNER SHE CHECKED WITH THE ART LOSS REGISTER WHICH CONFIRMED THAT THE TWO HAD BEEN AMONG THOSE STOLEN FROM LINCOLN'S INN STILL MISSING IS GAINSBOROUGH'S PORTRAIT OF SIR WILLIAM PITT WHO IN 1783 BECAME GEORGE III'S PRIME MINISTER AT AGE 24 NORMALLY UNDER BRITISH LAW MR GROVES WOULD HAVE TO YIELD POSSESSION TO THE OWNERS IN THIS CASE THE UNDERWRITERS THAT SETTLED THE CLAIM THEY WOULD THEN OFFER IT BACK TO LINCOLN'S INN IN EXCHANGE FOR THE CLAIM MONEY HOWEVER IT WOULD SEEM THAT MR GROVES'S PURCHASE AT BERMONDSEY MARKET ACTUALLY BROUGHT HIM GOOD TITLE TO THE WORKS UNDER AN ARCHAIC EXCEPTION TO THE RULE THAT A THIEF CANNOT PASS GOOD TITLE THE ANOMALY CALLED MARKET OVERT IN A MIX OF FRENCH AND ENGLISH INDICATIVE OF ITS ORIGINS IN NORMAN ENGLAND VALIDATES TRANSACTIONS AT SOME 20 SPECIFIC OUTDOOR MARKETS INCLUDING BERMONDSEY THERE BETWEEN DAWN AND SUNSET BUYERS CAN ACQUIRE GOOD TITLE TO STOLEN GOODS INITIALLY MARKET OVERT WAS A REASONABLE WAY TO INDUCE A THEFT VICTIM TO TAKE RESPONSIBILITY FOR SEEKING OUT HIS STOLEN PROPERTY OR LIVESTOCK IN THE NEAREST MARKET BUT IN THE 20TH CENTURY THIEVES CAN DRIVE BY NIGHT AND SELL THE GOODS BEFORE THE VICTIM EVEN NOTICES THE LOSS THE FRUSTRATING PREDICAMENT OF LINCOLN'S INN MAY MOVE ENGLAND'S LAWMAKERS TO REPEAL THE MARKETOVERT EXCEPTION AFTER CLOSING TIME A THIEF BROKE INTO THE BASEMENT OF THE LILJEVALCHS KONSTALL IN STOCKHOLM LAST SPRING SETTING OFF AN ALARM BY THE TIME POLICE RESPONDED SOME 20 MINUTES LATER A TINY BUT IMPORTANT PAINTING FROM THE GABRIELE MUNTER RETROSPECTIVE WAS GONE JAWLERSKY AND WEREFKIN IN THE FIELD 19081909 PAINTED IN OIL ON CARDBOARD STOCKHOLM WAS THE LAST STOP FOR THE SHOW ALREADY SEEN IN FRANKFURT AND AT THE HOME OF ITS ORGANIZER THE LENBACHHAUS IN MUNICH THE LENBACHHAUS IS HOME TO THE WORLD'S GREATEST COLLECTION OF THE WORK OF KANDINSKY AND OF HIS DEAR FRIEND MUNTER WHO WORKED WITH HIM IN HIS EARLY YEARS IN MURNAU THE FRAUD TRIAL OF THE TWO DAUGHTERS AND A GRANDDAUGHTER OF THE LATE LEON AND HILDA AMIEL PUBLISHERS OF PRINTS PURPORTEDLY BY SALVADOR DALI WITH OFFICES IN PARIS AND IN SECAUCUS NJ IS SCHEDULED FOR OCTOBER ONE YEAR AGO AUTHORITIES SEIZED 4 MILLION OF THEIR ASSETS FOLLOWING A SEVENYEAR INVESTIGATION BY US POSTAL INSPECTORS INTO THE WIDESPREAD SALE OF IMAGES FALSELY REPRESENTED AS LITHOGRAPHS BY DALI CHAGALL MIRO AND PICASSO AMONG OTHERS IN A RELATED CASE IN 1991 MICHAEL METT AND MARVIN WISEMAN AND THEIR COMPANY CENTER ART GALLERIES OF HONOLULU WERE CONVICTED ON DOZENS OF COUNTS OF MAIL AND WIRE FRAUD RELATED TO THE SALE OF THESE PRINTS THEY CONTINUE IN BUSINESS ON WAIKIKI WHILE ASKING THE APPEALS COURT THAT UPHELD THEIR CONVICTION TO RECONSIDER THE COMPLEX AND FASCINATING STORY OF THESE AND OTHER CASES OF PRINT FRAUD IS TOLD WITH ADMIRABLE CLARITY AND DETAIL IN LEE CATTERALL'S THE GREAT DALI ART FRAUD AND OTHER DECEPTIONS BARRICADE BOOKS 417 PAGES 2295 HIS TALE IS FULL OF THE MOST AMAZING CLAIMS MADE BY CENTER ART SALESMEN TO PROSPECTIVE BUYERS PERHAPS THE WINNER IN THE JAWDROPPER CONTEST IS THE ASSERTION THAT SOME DALI IMAGES WERE PRINTED ON PARCHMENT FROM THE VATICAN FLOCK THE PROSECUTION BROUGHT A MONSIGNOR TO TESTIFY THAT THE ONLY VATICAN FLOCK CONSISTS OF THE FAITHFUL MS LOWENTHAL IS EXECUTIVE DIRECTOR OF THE INTERNATIONAL FOUNDATION FOR ART RESEARCH IFAR 9308260054 930826 CANADA IS EXPECTING BUMPER GRAIN CROP DESPITE SOME DELAYS OTTAWA CANADA IS EXPECTED TO HARVEST A BUMPER GRAIN CROP THIS YEAR STATISTICS CANADA A GOVERNMENT AGENCY ESTIMATED THAT THE COUNTRY'S MAIN WHEAT CROP SPRING WHEAT WILL TOTAL 9624 MILLION BUSHELS THIS YEAR A 33 INCREASE FROM 9316 MILLION BUSHELS LAST YEAR SPRING WHEAT IS SEEDED IN THE SPRING AND HARVESTED IN THE FALL THE AGENCY IN ITS FIRST ESTIMATE OF THIS YEAR'S HARVEST ALSO PREDICTED A RECORD RAPESEED CROP AND SIZABLE BARLEY FLAXSEED AND OATS CROPS PRODUCTION OF RAPESEED ALSO KNOWN AS CANOLA IS EXPECTED TO TOTAL 257 MILLION BUSHELS A 58 INCREASE FROM 1627 MILLION BUSHELS LAST YEAR RAPESEED IS CANADA'S MAJOR OILSEED CROP STATISTICS CANADA ESTIMATED THAT THE CANADIAN OATS CROP WOULD TOTAL 2377 MILLION BUSHELS THIS YEAR A 299 INCREASE FROM 183 MILLION BUSHELS LAST YEAR IT SAID THIS YEAR'S OATS HARVEST IS EXPECTED TO BE THE LARGEST SINCE 1977 IN SASKATCHEWAN THE LARGEST WHEATPRODUCING PROVINCE CROPS APPEAR IN GOOD TO EXCELLENT CONDITION THE SASKATCHEWAN WHEAT POOL SAID BUT CROP DEVELOPMENT IS AT LEAST ONE TO TWO WEEKS BEHIND BECAUSE OF THIS SUMMER'S COOL WET WEATHER THE FARMERS' COOPERATIVE SAID JOANNE MEENTS A CROP ANALYST AT ALBERTA WHEAT POOL SAID THAT IF THE WEATHER HOLDS AND WE DON'T HAVE ANY FROST I THINK WE COULD TAKE OFF A VERY NICE CROP IN ALBERTA MANITOBA ANOTHER GRAINBELT PROVINCE HAS FARED LESS WELL CROPS IN SOUTH CENTRAL MANITOBA AND IN THE RED RIVER VALLEY REGION HAVE BEEN DAMAGED BY FLOODING AND BY DISEASES 9308260053 930826 LETTERS TO THE EDITOR CATERPILLAR EXCELS IN BENEFITS AND SAFETY I READ WITH INTEREST YOUR JULY 26 ARTICLE THAT FOCUSED ON CATERPILLAR AND ITS EMPLOYEES AS AN EXAMPLE OF HOW AMERICAN INDUSTRY IS RESPONDING TO THE CHALLENGES OF GROWING WORLDWIDE COMPETITION DIFFERENT COMPANIES HAVE APPROACHED THIS ISSUE IN DIFFERENT WAYS CATERPILLAR HAS CHOSEN TO COMPETE INTERNATIONALLY FROM PRIMARILY A US MANUFACTURING BASE THEREBY MAINTAINING HIGHQUALITY US PRODUCTION JOBS BEYOND THAT TWO POINTS IN THE ARTICLE DESERVE CLARIFICATION FIRST THE ARTICLE PERHAPS INADVERTENTLY CASTS DOUBT ON CATERPILLAR'S EXCELLENT SAFETY RECORD THE FACT IS THAT WE SET HIGH STANDARDS FOR SAFETY AND INSIST THAT THEY BE MET CATERPILLAR'S SAFETY RECORD LAST YEAR FOR HOURLY EMPLOYEES WAS THE BEST IN OUR COMPANY'S HISTORY AND AMONG THE BEST IN OUR INDUSTRY SECONDLY YOU CORRECTLY NOTED THAT THE CENTRAL ISSUE BETWEEN THE UAW LEADERSHIP AND CATERPILLAR IS NOT WAGES YOU DID NOT HOWEVER DESCRIBE THE IMPLEMENTED FINAL OFFER UNDER WHICH CATERPILLAR'S UAWREPRESENTED EMPLOYEES ARE WORKING TYPICAL ANNUAL WAGES RISING FROM 42000 IN 1991 TO 52000 IN 1997 FIRSTDOLLAR HEALTH COVERAGE NO PREMIUMS DEDUCTIBLES OR COPAYMENTS FOR CARE RECEIVED WITHIN OUR PREFERRED PROVIDER NETWORK JOB SECURITY GUARANTEED FOR SIX YEARS AND IMPROVED PENSIONS AND BENEFITS CONTINUING OVER THE SIX YEARS THIS COMPENSATION AND BENEFIT PACKAGE IS AMONG THE BEST IN US MANUFACTURING THE REAL ISSUE IS THE UAW LEADERSHIP'S INSISTENCE ON AN OUTDATED PATTERN CONTRACT THAT DOES NOT REFLECT THE REALITIES OF OUR MARKETS WHERE THE PRIMARY COMPETITORS ARE JAPANESE AND EUROPEAN CATERPILLAR CONTINUES TO ENCOURAGE UAW LEADERS TO RETURN TO THE BARGAINING TABLE AND TO NEGOTIATE AN AGREEMENT THAT WILL ENABLE CATERPILLAR TO CONTINUE MEETING CUSTOMER EXPECTATIONS WORLDWIDE THUS PROVIDING THE ONLY REAL FORM OF JOB SECURITY FOR ALL OF OUR EMPLOYEES 9308260052 930826 UPS WORKERS TO BE POLLED BY TEAMSTERS ON A STRIKE ATLANTA THE TEAMSTERS UNION SAID IT WOULD POLL ITS 165000 MEMBERS WHO WORK AT UNITED PARCEL SERVICE OF AMERICA INC TO JUDGE THE RANK AND FILE'S SUPPORT FOR A POSSIBLE STRIKE THE UNION ISN'T BREAKING OFF CONTRACT TALKS WHICH BEGAN IN APRIL AND HAVE BEEN EXTENDED INDEFINITELY SINCE THE LATEST PACT EXPIRED IN JULY THE UNION HAS AGREED TO GIVE UPS A FIVEDAY NOTICE IF IT CHOOSES TO WITHDRAW FROM TALKS THE VOTE ALSO DOESN'T MEAN THAT THE TEAMSTERS WILL STRIKE THE PACKAGEDELIVERY COMPANY THE LARGEST TEAMSTERS SHOP IN THE COUNTRY IN FACT THE UNION HAS JUST 30 MILLION IN ITS STRIKE FUND WHICH WOULD BE DRAINED IN A SINGLE WEEK IF UPS WORKERS WALKED OFF THEIR JOBS THIS MONTH THE UNION OBTAINED AN ADDITIONAL 80 MILLION IN LOANS FROM OTHER UNIONS IN AN INTERVIEW LATE YESTERDAY RON CAREY UNION PRESIDENT CHARACTERIZED THE COMPANY'S MOST RECENT OFFER AS INSULTING AND RIDICULOUS HE SAID UPS OFFERED A 35CENTANHOUR RAISE OVER THE NEXT SIX YEARS WHICH HE SAID REPRESENTS A 2 INCREASE THE UNION MR CAREY SAID HAD HOPED FOR AN 8 BOOST IN WAGES CMOREOVER HE SAID THE COMPANY IS OFFERING LOWERTHANEXPECTED INCREASES IN BENEFITS THE COMPANY WOULDN'T COMMENT ON SPECIFICS 9308260050 930826 LOPEZ CONCEDES HE SUPERVISED SHREDDING DATA VW AIDE SAYS MOVE CAME AFTER GM REQUESTED ANY PAPERS BE RETURNED BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL VOLKSWAGEN AG PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA HAS ACKNOWLEDGED IN A STATEMENT THAT HE SUPERVISED THE SHREDDING OF GENERAL MOTORS CORP DOCUMENTS IN THE DAYS FOLLOWING EXPLICIT REQUESTS FROM GM THAT ANY SUCH MATERIALS BE RETURNED IMMEDIATELY HOWEVER THE FORMER GM OFFICIAL CONTENDS THAT THE DOCUMENTS WERE ERRONEOUSLY INCLUDED IN BOXES OF PERSONAL PAPERS THAT HE ASKED A GM EMPLOYEE TO PACK FOR HIM VW MAINTAINS THAT NONE OF THE DOCUMENTS IN QUESTION CAME INTO THE POSSESSION OF VW AS A COMPANY AND THAT THE SHREDDING CAMPAIGN ENSURED THAT NO INDUSTRIAL ESPIONAGE WAS ALLOWED TO OCCUR STILL MR LOPEZ'S STATEMENT WHICH CAME TO PUBLIC LIGHT YESTERDAY BUT HAD BEEN SUBMITTED BY HIS LAWYER EARLIER THIS MONTH TO THE VW SUPERVISORY BOARD AND TO GERMAN PUBLIC PROSECUTORS BOLSTERS GM ARGUMENT THAT MR LOPEZ VIOLATED RULES GOVERNING PROPRIETARY INFORMATION WHEN HE JUMPED SHIP TO VW IN MIDMARCH THE STATEMENT WAS LEAKED TO THE PUBLIC YESTERDAY VIA REUTERS NEWS SERVICE VW SPOKESMEN REFUSED TO COMMENT ON THE STATEMENT SAYING IT DOESN'T WANT TO INTERFERE WITH THE PUBLIC PROSECUTOR'S CRIMINAL INVESTIGATION IN THE STATEMENT MR LOPEZ SAID THAT HE HAD BOXES OF MATERIALS FROM HIS RUESSELSHEIM GERMANY OFFICE SHIPPED TO HIS BROTHERINLAW IN SPAIN AFTER SWITCHING TO VW HE IMMEDIATELY HAD VW TRANSPORT THOSE BOXES TO WOLFSBURG GERMANY WHERE VW IS BASED IN THE WEEK OF MARCH 22 MR LOPEZ ARRANGED FOR A PAPER SHREDDER TO BE BROUGHT TO THE VW GUESTHOUSE ROTHEHOF WHERE HE SUPERVISED THE SHREDDING OF GM DOCUMENTS IN THOSE BOXES GM OFFICIALS SAY THEIR COMPLAINTS CENTER ON WHETHER MR LOPEZ COMPLIED WITH GM POLICY ON PROPRIETARY INFORMATION AS EARLY AS MARCH 22 HARRY PEARCE GM EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL SENT A LETTER TO MR LOPEZ REMINDING HIM OF GM POLICY AND REQUESTING CONFIRMATION THAT HE HAD NOT TAKEN ANY DOCUMENTS COPIES OR ORIGINALS OR ANY INFORMATION STORED IN ANY DATA PROCESSING OR ELECTRONIC MEDIUM OBTAINED WHILE WORKING AT GM MR PEARCE ADDED THAT IF MR LOPEZ DID HAVE ANY SUCH MATERIALS HE WAS TO ITEMIZE THE DOCUMENTS AND RETURN THEM AND ALL COPIES MADE PRIOR TO AND SUBSEQUENT TO YOUR DEPARTURE TO ME IMMEDIATELY ON MARCH 23 MR PEARCE SENT A SIMILAR LETTER TO VW CHAIRMAN FERDINAND PIECH REQUESTING HE TAKE APPROPRIATE STEPS TO ENSURE THAT IF ANY VW EMPLOYEES RECEIVE GM DOCUMENTS THOSE MATERIALS SHOULD BE ITEMIZED AND RETURNED IMMEDIATELY TO GM MR LOPEZ RESPONDED IN EARLY APRIL ABOUT A WEEK AND A HALF AFTER THE SHREDDING OF DOCUMENTS WAS STARTED THAT HE NEITHER TOOK AT THE TIME OF HIS DEPARTURE NOR WAS AT THAT TIME IN POSSESSION OF ANY CONFIDENTIAL DOCUMENTS FROM GM OR ITS GERMAN SUBSIDIARY ADAM OPEL AG HE ALSO SAID HE WOULD COMPLY WITH SECRECY OBLIGATIONS IN RESPECT TO ANY GM INFORMATION NOT IN THE PUBLIC DOMAIN MR LOPEZ'S STATEMENT MADE PUBLIC YESTERDAY ADDS TO THE CONFIRMATION THAT OUR COMPANY'S DOCUMENTS OUR PROPERTY WAS DESTROYED BY PEOPLE WORKING FOR A COMPETITOR INSTEAD OF BEING RETURNED TO THEIR RIGHTFUL OWNER SAID A GM OFFICIAL MEANWHILE VW SUPERVISORY BOARD CHAIRMAN KLAUS LIESEN REITERATED HIS SUPPORT FOR MR LOPEZ SAYING HE HAD NO REASON TO BELIEVE THE ALLEGATIONS OF INDUSTRIAL ESPIONAGE HAVE ANY BASIS 9308260048 930826 LEISURE & ARTS BUSINESS BOOKSHELF WORDS FOR ASPIRING WONKS BY HOLMAN W JENKINS JR IT'S A SAD COMMENTARY ON THE END OF HISTORY THAT ALMOST ALL POLICY DEBATE THESE DAYS IS CARRIED ON IN THE JARGON OF ECONOMICS STILL SOMEBODY'S GOT TO DO IT AND THE ASPIRING WONK CAN THANK HIS OR HER LUCKY STARS FOR THE FORTUNE ENCYCLOPEDIA OF ECONOMICS WARNER 876 PAGES EVEN AT 4995 IT'S CHEAPER THAN THE KENNEDY SCHOOL THESE 157 ESSAYS ARE CONCISE ENTERTAINING AND ALMOST EFFORTLESSLY DIGESTIBLE AN AMAZING ACHIEVEMENT CONSIDERING THEY CARRY TITLES SUCH AS RATIONAL EXPECTATIONS AND SPATIAL ECONOMICS THE EDITOR DAVID R HENDERSON OF THE HOOVER INSTITUTION MUST BE A RUTHLESS MAN HIS BRAINCHILD IS A TRIBUTE TO THE POWER OF THE SHORT DECLARATIVE SENTENCE EQUALLY NOTEWORTHY IS THE FORTUNE ENCYCLOPEDIA'S RELENTLESSLY PEEVISH TONE TOWARD GOVERNMENT THIS IS UNDERSTANDABLE AFTER READING JANE S SHAW'S ESSAY ON PUBLIC CHOICE THEORY DISCIPLES OF THIS SCHOOL DEPLOY ECONOMIC INSIGHTS TO INVESTIGATE WHY POLITICIANS DON'T LISTEN TO ECONOMISTS EVEN THOUGH ECONOMISTS ARE EXPERTS IN DISCERNING THE GENERAL GOOD LIKE EVERYBODY ELSE POLITICIANS AND BUREAUCRATS ARE TOO BUSY RESPONDING TO INCENTIVES AND THESE UNFORTUNATELY ARE STACKED IN FAVOR OF THE SINGLEISSUE LOBBYISTS WHO POPULATE THE BELTWAY THERE IS NO DIRECT REWARD FOR FIGHTING POWERFUL INTEREST GROUPS IN ORDER TO CONFER BENEFITS ON A PUBLIC THAT IS NOT EVEN AWARE OF THE BENEFITS OR WHO CONFERRED THEM WRITES MS SHAW MS SHAW DOESN'T ASK WHAT WEALTHY SOCIETIES LIKE OURS GAIN BY CEREMONIALLY SERVING UP VAST HORDES OF MONEY TO BE CONSUMED IN THESE RITUALS SHE'S AN ECONOMIST NOT AN ANTHROPOLOGIST BUT PRESUMABLY IT HAS SOMETHING TO DO WITH KEEPING THE SOCIAL FLYWHEEL IN KILTER OR NEUTRALIZING THE ENERGIES OF THE SORT OF PEOPLE WHO GRAVITATE INTO POLITICS ANYHOW ECONOMISTS HAVE BECOME OUR OMBUDSMEN REMINDING THE POLS THAT BAD POLICY HAS COSTS EVEN WHEN THESE COSTS AREN'T DISCERNIBLE TO THE MAN ON THE STREET THIS BY THE WAY MARKS A HEALTHY RETREAT FROM THE HUBRIS OF THE PAST IN AN ESSAY ON THE GREAT MAN'S THOUGHT ALAN BLINDER AN AVOWED KEYNESIAN WHO WORKS IN THE WHITE HOUSE ALLOWS THAT EVEN KEYNESIANS NOW BELIEVE THAT THE GOVERNMENT SIMPLY CANNOT KNOW ENOUGH SOON ENOUGH TO FINETUNE THE ECONOMY LIKEWISE THE ESSAYS ON WASHINGTON'S REGULATORY MEDDLING IN THE AIRLINE TRUCKING AND OTHER INDUSTRIES ARE A CATALOG OF LUNACIES DESPITE THE BEST INTENTIONS OF THE ECONOMISTS WHO RATIONALIZED THESE ADVENTURES IN THE FIRST PLACE FINALLY EVEN THE BUREAUCRATS THREW UP THEIR HANDS AND ADMITTED THE NEED TO DEREGULATE COME TO THINK OF IT THE ARGUMENT FOR INTERVENTION ONLY SOUNDS PERSUASIVE IN THE ABSTRACT TYLER COWAN MAKES A PLAUSIBLE CASE FOR PUBLIC GOODS SUCH AS THE SERVICES OF A LIGHTHOUSE WHICH PEOPLE CAN'T OBTAIN BY SHOPPING AS INDIVIDUALS ON THE FLIP SIDE ARE EXTERNALITIES OR COSTS BORNE BY EVERYBODY BECAUSE OF YOUR CONSUMPTION CHOICES OR MINE AIR POLLUTION FOR EXAMPLE IN THE TRAGEDY OF THE COMMONS GARRETT HARDIN LAYS OUT THE RELATED CASE OF A COMMON RESOURCE LIKE A FISHERY THAT IS OVERCONSUMED BECAUSE NOBODY OWNS IT BUT GOVERNMENTS HAVE A HISTORY OF BUNGLING THESE JOBS TOO THE SOVIET ENVIRONMENTAL FIASCO BEING A CASE IN POINT HENCE THE RUSH OF ECONOMISTS INTO FREEMARKET ENVIRONMENTALISM WHICH TRIES TO FIND WAYS TO ALLOCATE PROPERTY RIGHTS OVER RESOURCES SO THAT OWNERS HAVE AN INCENTIVE TO PRESERVE THEM YOU WON'T FIND MUCH FODDER IN THESE PAGES FOR THE CLINTONITE CLASS WAR NOT ONE OF THE SEVEN ESSAYS ON TAXATION PURPORTS TO KNOW WHAT IT MEANS FOR THE RICH TO PAY THEIR FAIR SHARE RATHER ALAN REYNOLDS A NOTED SUPPLYSIDER POINTS OUT THAT THE REAGAN TAX CUTS ENCOURAGED THE RICH TO EARN MORE INCOME AND PAY MORE TAXES JOEL SLEMROD OF THE UNIVERSITY OF MICHIGAN SAYS THE TAX CODE BECAME MORE PROGRESSIVE UNDER MR REAGAN THAN IT WAS UNDER JIMMY CARTER AND GIVEN MR CLINTON'S FAILURE TO KILL EVEN THE NOTORIOUS HONEY SUBSIDY HIS FIX THE DEFICIT BATTLE CRY WOULD PROBABLY PRODUCE ONLY JAUNDICED SNORTS FROM THESE AUTHORS IN AN ESSAY THAT SHOULD BE COMPULSORY READING JOHN F COGAN SURVEYS US FISCAL HISTORY AND FINDS THAT WASHINGTON'S PROBLEM TODAY IS NOT A SHORTAGE OF TAX DOLLARS IT'S A SURPLUS OF FECKLESSNESS ALWAYS IN THE PAST HE NOTES SPENDING STAYED IN REASONABLE CHECK BECAUSE BUDGETMAKING AUTHORITY WAS KEPT TIGHTLY IN REIN BY THE CONGRESSIONAL LEADERSHIP ONLY AFTER SPENDING AUTHORITY WAS DISPERSED DOWNWARD TO THE ELECTED HOI POLLOI THEIR STAFFS AND THEIR INNUMERABLE SUBCOMMITTEES DID THINGS GET OUT OF HAND SUDDENLY EVERYBODY WAS SCRAMBLING AFTER A BIGGER SHARE OF THE TAX DOLLARS BUT NOBODY HAD THE INCENTIVE TO BLOW THE WHISTLE TODAY THE ENTITLEMENT PROGRAMS ARE THE AD ABSURDUM CASE HOOKED UP TO A DEMOGRAPHIC AUTOPILOT THEY'RE EFFECTIVELY BEYOND HUMAN CONTROL SAMUEL RANDALL THE FORMER CHAIRMAN OF THE HOUSE APPROPRIATIONS COMMITTEE WARNED IN 1884 ABOUT THE DANGERS OF TURNING THE BUDGET INTO A PINATA FOR CONGRESSMEN IF YOU UNDERTAKE TO DIVIDE ALL THESE APPROPRIATIONS AND HAVE MANY COMMITTEES WHERE THERE SHOULD BE BUT ONE YOU WILL ENTER UPON A PATH OF EXTRAVAGANCE YOU CANNOT FORESEE THE LENGTH OF OR THE DEPTH OF UNTIL WE FIND THE TREASURY OF THE COUNTRY BANKRUPT MR JENKINS IS A JOURNAL EDITORIAL WRITER 9308260047 930826 HOW TAXES GROUND US AVIATION BY CLYDE MCAVOY SINCE 1903 WHEN THE WRIGHT BROTHERS INVENTED THE FLYING MACHINE AMERICA HAS HAD ONE OF THE WORLD'S MOST PROFITABLE AND INNOVATIVE AVIATION INDUSTRIES BUT THIS LEGACY OF ENTERPRISE IS BEING THREATENED BY OPPRESSIVE CAPITALGAINS TAX RATES LAST YEAR AMERICA IMPORTED MORE AIRPLANES THAN IT EXPORTED AND FOR THE FIRST TIME CHINESEMADE AIRCRAFT ARE BEING SOLD IN THE US THERE ARE MANY YANKEE MINDS AT WORK SEEKING AN ENTIRELY NEW APPROACH TO FLIGHT AND SOME ARE ON THE THRESHOLD OF AN ASTONISHING CHANGE IN AVIATION ECONOMICS BUT LIKE THE AMERICAN INVENTORS OF VIDEO AND FAX MACHINES THEY LACK ACCESS TO THE VENTURE CAPITAL NEEDED TO BRING THESE AIRCRAFT TO THE MARKETPLACE NOT THAT IT DOESN'T EXIST ABOUT 7 TRILLION IN VENTURE CAPITAL CIRCULATES IN THE US ECONOMY BUT MOST OF IT IS LOCKED UP AND UNLIKELY TO BE UNLEASHED WITH A CAPITAL GAINS TAX RATE THAT ACTS AS A DISINCENTIVE TO INVESTMENT AS A RESULT THE MOST PROFOUND AVIATION DEVELOPMENT SINCE THE JET ENGINE MUST LOOK ABROAD FOR ITS SEED MONEY AND RISK LOSING MARKET CONTROL IN THE PROCESS HERE I'D LIKE TO TELL A STORY FROM MY OWN EXPERIENCE MY COMPANY AVTEK DESIGNED THREE AIRCRAFT MADE ENTIRELY OF KEVLAR A COMPOSITE THAT IS FIVE TIMES STRONGER THAN STEEL INSTEAD OF ALUMINUM WHAT SENDS MY COLLEAGUE AVTEK CHAIRMAN ROBERT ADICKES ABROAD FOR INVESTORS IS THE FACT THAT FOREIGN NATIONS TAX VERY LIGHTLY IF AT ALL THOSE WHO HAVE SAVED AND INVESTED THE US ON THE OTHER HAND DOESN'T EVEN INDEX CAPITAL GAINS FOR INFLATION WHICH MEANS IT CUTS ITSELF IN FOR ALMOST 60 OF PRIVATE INVESTMENTS HELD FOR MORE THAN FOUR YEARS WITH PUNISHING TAX CODES OF THAT KIND WHAT AMERICA STANDS TO LOSE IS AN AIRPLANE THAT FLIES HIGHER FASTER FARTHER AND ALMOST 300 MORE EFFICIENTLY THAN OTHER CORPORATESIZE OR COMMUTER AIRPLANES IN ITS CATEGORY WEIGHS 30 LESS THAN ALUMINUM AIRPLANES OF THE SAME CAPACITY BUT IS 15 STRONGER AND WITHOUT THE ENDEMIC WEAKNESSES OF CORROSION AND METAL FATIGUE HAS AN EXTERIOR OF SUCH RIGOR THAT IT IS IMMUNE TO THE COMMON RAMP ACCIDENTS THAT PLAGUE COMMERCIAL AVIATION COSTS LESS TO BUY THE PLETHORA OF BRITISH DUTCH SCANDINAVIANS AND JAPANESE BUYING INTO US AIRLINES ILLUSTRATES THEIR CONFIDENCE IN OUR AVIATION INDUSTRY EVEN THOUGH AIRLINE STOCKS PERFORM POORLY FOR FOREIGN INVESTORS WHO ARE SHY ABOUT THE DRAMATIC SWITCH FROM OUTDATED ALUMINUM TO KEVLAR AVTEK NEED ONLY POINT TO THOSE FUNNYLOOKING MACHINES THAT LANDED US ON THE MOON THE B2 BOMBER AND THE F117A STEALTH FIGHTER ARE ALSO MADE OF KEVLAR NORTHROP PRESIDENT OLIVER BOILEAU SAYS THE B2 TAKEOFFS ARE PURE VANILLA JUST ROLL THE B2 DOWN THE RUNWAY AND IT GOES UP IT HAS NO DRAG BECAUSE OF B2 AND F117A PERFORMANCE NO NEW MILITARY AIRPLANES OR HELICOPTERS IN THE US WILL BE MADE OF ALUMINUM EVER EVENTUALLY IF WE WAIT MILITARY INNOVATION OF THIS KIND TRICKLES DOWN TO THE COMMERCIAL LEVEL THIS TIME AN IMPATIENT MR ADICKES SET OUT TO REINVENT THE PROCESS WITHOUT A BYYOURLEAVE FROM THE GOVERNMENT THE FACT THAT AVTEK'S FLIGHT PERFORMANCE LEAPFROGS THE INDUSTRY AS WE KNOW IT TODAY SHOWS HE FOUND THE KEY WHEN MY COLLEAGUES AND I REALIZED THAT WE HAD A PRODUCT OF QUALITY EXCEEDING OUR WILDEST EXPECTATIONS WE TURNED TO INVESTORS AT STAKE WAS CAPITAL WITH WHICH TO COMPLETE THE EXACTING AND VERY EXPENSIVE FEDERAL AVIATION ADMINISTRATION TESTS FOR TYPE CERTIFICATION THE SEARCH WAS UNIFORMLY DISAPPOINTING THREE OF 50 STATE DEVELOPMENT AGENCIES PLEDGED BUT FAILED TO RAISE THE 20 MILLION NEEDED TO BRING IN THE 2400 JOBS AN AVTEK FACTORY WILL YIELD A FOURTH ATTEMPTED TO TAKE THE WHOLE COMPANY AWAY FROM US ONE FOREIGN INVESTOR PUT UP A SMALL AMOUNT OF CAPITAL THEN PLANTED AT AVTEK HEADQUARTERS ONE OF HIS NATIVE ENGINEERS WHO WAS CAUGHT TRYING TO STEAL THE TECHNOLOGY ON THE BRIGHT SIDE WE HAVE RECEIVED INQUIRIES FROM NUMEROUS FOREIGN INVESTORS AND CHINA FORECASTS A LOCAL MARKET FOR 100 AVTEK COMMUTER AIRPLANES A YEAR FOR THREE YEARS ALAS CHINESE CURRENCY WILL NOT PAY AVTEK'S DOLLARDENOMINATED COST OF FAA CERTIFICATION CURRENTLY THERE ARE NINE COMMUTERCLASS 19PASSENGER AIRCRAFT IN THE MARKET ALL OF THEM SUBSIDIZED BY A GOVERNMENT TO COMPETE WITH THREATS SUCH AS AVTEK THAT DOESN'T MEAN WE WANT SUBSIDIES WE DON'T ACCEPTANCE OF GOVERNMENT SUBSIDIES USUALLY MEANS DREADED MILSPECS GOVERNMENT SPECIFICATIONS EPITOMIZED BY 500 TOILET SEATS IN OUR VIEW ONLY FREEDUP CAPITAL WILL SOLVE AVTEK'S PROBLEM IF CONGRESSMEN WERE AS FAMILIAR WITH THE CONSEQUENCES OF THEIR TAX POLICIES AS AERONAUTICAL ENGINEERS ARE WITH THE LAWS OF PHYSICS THEY WOULD INDEX CAPITAL GAINS TAXES AS THEY HAVE ENTITLEMENT PROGRAMS IF NOT THE QUESTION THAT LOOMS IS WHAT WILL THE MARKINGS ON OUR MIRACULOUS AIRPLANE SAY OUR BET IS MADE IN JAPAN MR MCAVOY IS PRESIDENT OF AVTEK PACIFIC INC IN KAILUA HAWAII 9308260046 930826 ECONOMY DURABLEGOODS ORDERS DECLINED BY 38 IN JULY DROP IS LARGELY DUE TO 18 TRANSPORTATION FALLOFF MANY SEE SLOW GROWTH BY ELIOT MORGAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ORDERS FOR BIGTICKET FACTORY ITEMS DROPPED 38 IN JULY THE FIFTH DECLINE SINCE FEBRUARY THE COMMERCE DEPARTMENT SAID THE DECLINE TO 12745 BILLION IN ORDERS FOR DURABLE GOODS WAS LARGELY DUE TO A PLUNGE IN TRANSPORTATION BOOKINGS WHICH TUMBLED 18 IN JULY THE TRANSPORTATION FALLOFF WAS CONCENTRATED IN AIRCRAFT ORDERS WHICH VARY WIDELY FROM MONTH TO MONTH ORDERS FOR DURABLES ITEMS EXPECTED TO LAST THREE YEARS OR MORE ROSE A REVISED 45 IN JUNE MANY ECONOMISTS SAID THE REPORT SUGGESTED CONTINUED SLOW GROWTH IN THE MANUFACTURING SECTOR IT AIN'T GOOD SAID JOEL PRAKKEN VICEPRESIDENT LAURENCE H MEYER & ASSOCIATES LTD THOUGH MANUFACTURING IS NOT STALLED IT IS CERTAINLY WORKING IN LOW GEAR AT LEAST ONE ECONOMIST SAID THE DETAILS OF THE REPORT AREN'T AS BAD AS THE OVERALL FIGURE SUGGESTS THE REPORT EXAGGERATES THE WEAKNESS IN THE MANUFACTURING SECTOR SAID MARILYN SCHAJA OF DONALDSON LUFKIN & JENRETTE SECURITIES CORP PEOPLE SHOULD NOT FOCUS ON THE 38 DECLINE BECAUSE THE DETAILS SUGGEST GROWTH MS SCHAJA NOTED THAT EXCLUDING AIRCRAFT AND PARTS ORDERS ROSE 04 IN JULY HOWEVER THE SAME CATEGORY ROSE 3 IN JUNE ECONOMISTS ARE EXPECTING THE AUTO INDUSTRY TO PULL THE WEIGHT OF THE OVERALL MANUFACTURING SECTOR IN THE SECOND HALF OF THE YEAR BUT THE FIGURES SUGGEST THAT MANUFACTURING EMPLOYMENT ISN'T LIKELY TO INCREASE SOON THAT'S BECAUSE UNFILLED ORDERS FELL FOR THE FIFTH CONSECUTIVE MONTH TO THEIR LOWEST SINCE AUGUST 1988 SUGGESTING FACTORIES AREN'T HAVING TROUBLE MEETING DEMAND WITH THEIR CURRENT WORK FORCE THERE IS NO REASON FOR MANUFACTURERS TO HIRE SAID JOSEPH LIRO CHIEF ECONOMIST FOR SG WARBURG & CO IN TERMS OF MANUFACTURING EMPLOYMENT IT WILL SHOW A STEADY DECLINE OF 10000 TO 20000 JOBS EVERY MONTH FOR THE NEXT SEVERAL MONTH IN THE LATEST REPORT ORDERS FOR PRIMARY METALS AND ELECTRONIC EQUIPMENT POSTED SMALL DROPS WHILE ORDERS FOR INDUSTRIAL MACHINERY AND EQUIPMENT ROSE 45 ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES ON NEW ORDERS FOR DURABLE GOODS SEASONALLY ADJUSTED IN BILLIONS 9308260045 930826 WORLD MARKETS EUROPEAN MARKETS ADVANCE ON RENEWED HOPES FOR RATE CUT BY GERMANY TOKYO STOCKS RISE A WALL STREET JOURNAL NEWS ROUNDUP LONDON STOCKS CLIMBED TO A RECORD HIGH WHILE THE FRANKFURT MARKET ADVANCED 11 ON RENEWED EXPECTATIONS OF A GERMAN INTEREST RATE CUT TODAY TOKYO PRICES ALSO ROSE ON INTEREST RATE NEWS IN JAPAN AND A STRENGTHENING OF THE DOLLAR THAT HELPED EXPORTERS' SHARES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11128 DOWN 016 REFLECTING DROPS IN ASIA/PACIFIC MARKETS AND HIGHER MARKETS IN THE AMERICAS AND EUROPE ENTERTAINMENT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 15144 UP 160 OR 11 WITH PARAMOUNT COMMUNICATIONS OF THE US POSTING A 29 GAIN IN ITS LOCAL CURRENCY ADVANCED TECHNOLOGY/MEDICAL DEVICES STOCKS TRAILED AT 5959 DOWN 220 OR 36 WITH MEDTRONIC OF THE US SLIDING 57 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100 INDEX ROSE 299 POINTS TO 30792 A RECORD CLOSE THE FT 30 INDEX GAINED 208 TO 23943 VOLUME WAS 7318 MILLION SHARES COMPARED WITH 5395 MILLION THE PREVIOUS DAY INVESTORS ARE LOOKING FOR GERMANY'S CENTRAL BANK THE BUNDESBANK TO CUT ITS 675 DISCOUNT RATE AS MUCH AS 05 PERCENTAGE POINT AT ITS POLICY MEETING TODAY THE DISCOUNT RATE IS CHARGED ON LOANS TO BANKS AND IT INFLUENCES THE RATES BANKS CHARGE THEIR CUSTOMERS THE NEARCOLLAPSE OF EUROPE'S CURRENCY SYSTEM LAST MONTH SPARKED HOPES THAT INTEREST RATES WOULD FALL THUS BOOSTING CORPORATE EARNINGS THOSE HOPES SO FAR HAVE BEEN IN VAIN BUT THE BUNDESBANK MEETING TODAY IS THE FIRST SINCE BEFORE THE LATEJULY CURRENCY CRISIS WALL STREET'S RECORD CLOSE TUESDAY AND EARLY GAINS YESTERDAY ALSO BUOYED THE LONDON MARKET IN ADDITION THE US MARKET'S BULLISH REACTION TO WEAK JULY US DURABLEGOODS DATA REINFORCED THE ATTITUDE OF INVESTORS WORLDWIDE THAT BAD ECONOMIC NEWS IS GOOD NEWS FOR INTEREST RATE CUTS IN FRANKFURT PRICES FIRMED 11 AS A BETTERTHANEXPECTED INFLATION REPORT FROM TWO GERMAN STATES FUELED SPECULATION ABOUT A CUT IN THE DISCOUNT RATE THE DAX 30STOCK INDEX OF BLUECHIPS ROSE 2009 POINTS TO 191778 FOLLOWING TUESDAY'S 942POINT GAIN THE STOCK MARKET CONTINUED TO BE INFLUENCED BY MOVEMENTS IN BOND PRICES WHICH RALLIED SHARPLY YESTERDAY MOST OTHER EUROPEAN MARKETS FINISHED HIGHER IN PARIS STOCKS RALLIED ON THE FIRST DAY OF THE SEPTEMBER TRADING ACCOUNT AS TRADERS FACTORED IN THE POSSIBILITY OF A BUNDESBANK RATE CUT IN AMSTERDAM PRICES FIRMED EXTENDING A NEARLY MONTHLONG RALLY A STRONGER DOLLAR AND RISES ON FOREIGN BOURSES BOOSTED SENTIMENT AS DID THE STRONG START ON WALL STREET HOPES FOR A GERMAN INTEREST RATE CUT TODAY ALSO SUPPORTED PRICES ALTHOUGH THIS HAS LARGELY BEEN FACTORED INTO THE MARKETS ALREADY IN MILAN SHARES GAINED GROUND DESPITE A BREAKDOWN IN THE AUTOMATIC TRADING SYSTEM WHICH CURTAILED BUSINESS THE SYSTEM WAS ONLY FUNCTIONAL FOR ABOUT 2 1/2 HOURS IN STOCKHOLM STOCKS SLID IN HEAVY TRADING FOR THE FIFTH CONSECUTIVE SESSION THOUGH BANKING ISSUES RECOUPED SOME OF TUESDAY'S LOSSES IN ZURICH PRICES CLOSED HIGHER AS INVESTORS BOUGHT UP BLUECHIPS THE HIGHER DOLLAR LENT SUPPORT TO PHARMACEUTICAL ISSUES AND THE BANKING SECTOR GAINED ON STRONG BUYING INTEREST AS DEALERS ANTICIPATED STRONG FIRSTHALF RESULTS FROM SWISS BANK THE GAIN WAS PARTLY DUE TO SOME POSITIVE NEWS ON INTEREST RATES THAT COULD SIGNAL AN EVENTUAL CUT IN THE JAPANESE DISCOUNT RATE THE DOLLAR'S REBOUND WEDNESDAY ALSO LIFTED A NUMBER OF EXPORTERS' SHARES IN HEAVY VOLUME A STRONGER DOLLAR INCREASES THE VALUE OF EXPORTERS' OVERSEAS PROFITS WHEN TRANSLATED BACK INTO YEN THE ANNOUNCEMENT THAT MITSUBISHI BANK WILL LOWER ITS PRIME RATE BY 025 PERCENTAGE POINT TO 375 EFFECTIVE AUG 31 GAVE THE AFTERNOON SESSION A LITTLE BANG THE MOVE COULD SIGNAL THAT LOWER INTEREST RATES ARE IN THE PIPELINE AS OTHER BANKS ARE EXPECTED TO FOLLOW MITSUBISHI'S LEAD THE SHORTTERM PRIME RATE IS WHAT JAPANESE COMMERCIAL BANKS CHARGE ON LOANS FOR UP TO A YEAR AND IS THE BENCHMARK FOR THEIR LONGERTERM LENDING RATES MOST OTHER ASIAN AND PACIFIC MARKETS FINISHED LOWER IN HONG KONG SHARES FELL FOR THE FOURTH STRAIGHT SESSION ON WORSETHANEXPECTED RESULTS AT THE COLONY'S FLAG CARRIER BANKS POSTED THE BIGGEST LOSSES FOLLOWED BY PROPERTY STOCKS AND COMMERCIAL AND INDUSTRIAL ISSUES IN SINGAPORE STOCKS ADVANCED 11 LED BY MAJOR STOCKS SUCH AS BEVERAGE AND PROPERTY GROUP FRASER & NEAVE AND SINGAPORE PRESS HOLDINGS IN TAIWAN PRICES SLIPPED IN THIN TRADING FOR A SEVENTH CONSECUTIVE LOSS INVESTORS' CONFIDENCE WAS STILL WEAK AFTER THE STRING OF DECLINES ALTHOUGH TAIWAN'S CENTRAL BANK HAS TRIED TO LOWER INTEREST RATES THROUGH OPENMARKET OPERATIONS TO FUEL MONEY SUPPLY IT ISN'T LIKELY TO USE THE MORE POWERFUL TOOLS SUCH AS DIRECT CUTS IN ITS REDISCOUNT RATE OR RESERVE REQUIREMENTS IN THE NEAR FUTURE IN SEOUL STOCKS PLUNGED 14 THE THIRD STRAIGHT DROP ON MOUNTING CONCERNS ABOUT A DELAYED ECONOMIC RECOVERY SOUTH KOREA'S ECONOMY IS STILL IN DEEP TROUBLE CHARACTERIZED BY SLUGGISH CAPITAL INVESTMENTS ALSO WEIGHING ON THE MARKET WERE RUMORS OF A CASH SHORTAGE AT SMALL BUSINESSES IN WELLINGTON EQUITIES LOST GROUND IN MODERATE TRADING AS THE MARKET CONTINUED TO CONSOLIDATE RECENT GAINS AMONG CORPORATE DEVELOPMENTS IN HONG KONG CATHAY PACIFIC AIRWAYS TUMBLED 40 HONG KONG CENTS OR 38 TO HK10 US129 THE AIRLINE'S FIRSTHALF PROFITS PLUNGED 46 SIGNIFICANTLY MORE THAN EXPECTED TO HK681 MILLION 879 MILLION COMPARED WITH HK126 BILLION A YEAR EARLIER A 17DAY STRIKE BY FLIGHT ATTENDANTS COST CATHAY AN ESTIMATED HK240 MILLION IN REVENUE SWIRE PACIFIC CATHAY'S PARENT DROPPED HK125 TO HK37 IN LONDON REUTERS JUMPED 18 PENCE OR 12 TO 1516 2271 THERE WAS HEAVY TRADING VOLUME IN REUTERS AMERICAN DEPOSITARY RECEIPTS IN THE US INCLUDING TWO BLOCK TRADES OF FOUR MILLION SHARES EACH POSSIBLY RELATED TO THE BRITISH COMPANY'S 58 STOCK BUYBACK WHICH CLOSED AT NOON THE COMPANY HAD ANNOUNCED THE PLAN TO BUY BACK ABOUT 25 MILLION SHARES AT 14 A SHARE IN LATE JULY MICHAEL W ELLMAN AN ANALYST AT WERTHEIM SHRODER SPECULATED THAT THE UNUSUALLY HEAVY TRADING MIGHT RESULT FROM ARBITRAGERELATED ACTIVITY BECAUSE OF DIFFERING TAX RATES IT WAS POSSIBLE THAT IF YOU WERE A BRITISH HOLDER THE TENDER OFFER IS MORE ATTRACTIVE THAN FOR A USBASED INSTITUTION HE SAID EACH REUTERS ADR REPRESENTS THREE SHARES 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 9308260044 930826 MARKETING & MEDIA EYECARE CLINIC SUES NBC OVER DATELINE' PROGRAM GREENSBORO NC AP AN EYECARE CLINIC SUED NBC SAYING THE NETWORK'S DATELINE NBC PROGRAM FALSELY ACCUSED IT OF SCHEDULING NEEDLESS CATARACT SURGERY THE SUIT WHICH SEEKS 6 MILLION IN DAMAGES SAYS THE PROGRAM'S MAY 4 BROADCAST IMPLIED THAT A HEALTHY WOMAN WHO POSED AS A PATIENT WAS MINUTES AWAY FROM NEEDLESS SURGERY THE SUIT FILED IN FEDERAL COURT NAMES NBC AND DATELINE NBC REPORTER BRIAN ROSS AS DEFENDANTS THE PLAINTIFFS ARE CENTRAL CAROLINA SURGICAL EYE ASSOCIATES AND C RICHARD EPES OF SOUTHEASTERN EYE CENTER MARK MCDANIEL EXECUTIVE DIRECTOR OF THE SOUTHEASTERN EYE CENTER SAID THE WOMAN WAS TOLD BY TWO DIFFERENT DOCTORS SHE DIDN'T NEED CATARACT SURGERY HE SAID SHE CALLED BACK TO TRY TO SCHEDULE SURGERY BECAUSE NBC WAS FACING A DEADLINE NBC A UNIT OF GENERAL ELECTRIC CO SAID THE STORY WAS FAIR AND ACCURATE THE PROGRAM BROADCAST WHAT HAPPENED STEP BY STEP IN THAT CLINIC LETTING VIEWERS DECIDE FOR THEMSELVES WHAT WE HAD FOUND THE NETWORK SAID NBC SAID THE CLINIC WAS TRYING TO TAKE ADVANTAGE OF THE NETWORK FOLLOWING ITS FEBRUARY APOLOGY TO GENERAL MOTORS CORP OVER ANOTHER DATELINE NBC BROADCAST IN WHICH INCENDIARY DEVICES WERE ATTACHED TO A GM PICKUP SO A FIRE WOULD ERUPT AFTER A TEST CRASH MR MCDANIEL SAID REVENUE AT SOUTHEASTERN DROPPED 30 IN THE THREE MONTHS FOLLOWING THE BROADCAST 9308260043 930826 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 BETHLEHEM STEEL CORP 105 MILLION ISSUE OF SENIOR NOTES DUE SEPT 1 2003 PRICED AT PAR TO YIELD 10375 ACCORDING TO MCM CORPORATEWATCH RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC BRUNSWICK CORP 125 MILLION OF DEBENTURES DUE SEPT 1 2023 PRICED AS 7375S AT 9928 TO YIELD 7435 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 110 BASIS POINTS ABOVE THE 7125 TREASURY RATED BAA2 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO CORT FURNITURE RENTAL CORP 100 MILLION OF UNITS EACH CONSISTING OF ONE SENIOR NOTE AND 33 WARRANTS SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE SENIOR NOTES WHICH MATURE ON SEPT 1 2000 WERE PRICED AT PAR TO YIELD 12 NONCALLABLE FOR FIVE YEARS THE NOTES ARE RATED SINGLEB2 BY MOODY'S AND SINGLEBMINUS BY S&P THE WARRANTS REPRESENTING 10 OF NEW CORT HOLDING CO'S SHARES ARE EXERCISABLE AFTER THREE MONTHS AND EXPIRE ON SEPT 1 1998 AFTER THREE MONTHS THE BONDS AND WARRANTS WILL TRADE SEPARATELY CORT FURNITURE IS A UNIT OF NEW CORT HOLDING FEDERAL FARM CREDIT BANKS 125 MILLION OF MEDIUMTERM NOTES DUE SEPT 1 1995 PRICED AT PAR TO YIELD 3875 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO IRT PROPERTY CO 75 MILLION PRINCIPAL AMOUNT OF 73 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2003 AND PRICED AT PAR THROUGH COMANAGERS MERRILL LYNCH & CO ALEX BROWN & SONS INC AND AG EDWARDS & SONS INC PROVINCE OF ONTARIO 600 MILLION CANADIAN DOLLARS US4554 MILLION OF 81 BONDS MATURING SEPT 8 2023 PRICED AT 9825 TO YIELD 8259 OR 63 BASIS POINTS ABOVE COMPARABLE GOVERNMENT OF CANADA BOND SOUTHERN CALIFORNIA EDISON CORP 125 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE SEPT 1 2004 PRICED AS 5875S AT 99726 TO YIELD 5909 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 40 BASIS POINTS ABOVE TREASURYS THE ISSUE RATED DOUBLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P WAS WON IN COMPETITIVE BIDDING BY FIRST BOSTON CO SOUTHERN CALIFORNA EDISON IS A UNIT OF SCECORP UNION PACIFIC CORP 150 MILLION OF NOTES DUE SEPT 1 2003 PRICED AS 6 AT 99259 TO YIELD 61 ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR SEVEN YEARS WAS PRICED AT A SPREAD OF 58 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP WESTINGHOUSE ELECTRIC CORP 600 MILLION TWOPART ISSUE OF NOTES PRICED BY UNDERWRITERS LED BY LEHMAN BROTHERS ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 275 MILLION OF NOTES DUE SEPT 1 2003 WAS PRICED AS 6875S AT 99821 TO YIELD 69 THE NOTES WERE PRICED AT A SPREAD OF 135 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 325 MILLION OF DEBENTURES DUE SEPT 1 2023 WAS PRICED AS 7875S AT 99828 TO YIELD 789 THE DEBENTURES WERE PRICED AT A SPREAD OF 155 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE NONCALLABLE AND ARE RATED BAA3 BY MOODY'S AND TRIPLEB BY S&P IRT PROPERTY CO FOUR MILLION COMMON SHARES PRICED AT 1125 APIECE THROUGH COMANAGING UNDERWRITERS MERRILL LYNCH & CO ALEX BROWN & SONS INC AND AG EDWARDS & SONS INC IRT WILL SELL 36 MILLION COMMON SHARES AND SELLING SHAREHOLDERS 400000 SIMMONS OUTDOOR CORP INITIAL OFFERING OF 11 MILLION COMMON SHARES OF THIS WHOLLY OWNED SUBSIDIARY OF NOEL GROUP INC PRICED AT 550 APIECE THROUGH UNDERWRITERS LED BY ADVEST INC UNIONFED FINANCIAL CORP PURCHASE PRICE FOR SHARES IN A PLANNED RIGHTS OFFERING SET AT 175 A SHARE HOLDERS OF COMMON STOCK AS OF YESTERDAY WILL RECEIVE A YETTOBEANNOUNCED NUMBER OF TRANSFERABLE SUBSCRIPTION RIGHTS FOR EACH SHARE HELD THE COMPANY SAID WITH EACH RIGHT ENTITLING ITS HOLDER TO BUY ONE COMMON SHARE THE COMPANY IS SEEKING TO RAISE AT LEAST 375 MILLION MASSACHUSETTS HEALTH AND EDUCATION FACILITIES AUTHORITY 123 MILLION REVENUE BONDS PRICED BY A PRUDENTIAL SECURITIES INC GROUP YIELDS RANGE FROM 27 IN 1994 TO 55 IN 2020 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P MONTANA HIGHER EDUCATION STUDENT ASSISTANCE CORP 200 MILLION 1993 SERIES A SERIES B AND SERIES C STUDENTLOAN REVENUE BONDS BROUGHT TO THE MARKET BY A SMITH BARNEY SHEARSON INC GROUP THE BONDS WHICH ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX HAVE YIELDS THAT RANGE FROM 34 IN 1994 TO 595 IN 2012 THE 732 MILLION SENIOR SERIES 1993A BONDS ARE PRICED TO YIELD FROM 34 IN 1994 TO 575 IN 2012 THE 100 MILLION SENIOR SERIES 1993B BONDS ARE PRICED TO YIELD FROM 34 IN 1994 TO 57 IN 2012 THE 268 MILLION SUBORDINATE SERIES 1993C BONDS ARE 595S PRICED AT PAR AND ARE TO YIELD 595 IN 2012 THE SENIOR SERIES A AND SERIES B BONDS HAVE A TRIPLEA RATINGS FROM MOODY'S AND THE SUBORDINATE SERIES C BONDS HAVE A SINGLEA MOODY'S RATING METROPOLITAN TRANSPORTATION AUTHORITY NEW YORK 3887 MILLION SERIES 7 SERVICECONTRACT BONDS PRICED BY A BEAR STEARNS & CO GROUP INCLUDED IN THE MTA ISSUE ARE 2833 MILLION TRANSITFACILITIES BONDS AND 1054 MILLION COMMUTERFACILITIES BONDS FOR BOTH SETS OF SECURITIES YIELDS RANGE FROM 34 IN 1995 TO 585 FOR ZEROCOUPON BONDS DUE IN 201214 THE BONDS HAVE A BAA1 RATING FROM MOODY'S AND A TRIPLEB RATING IS EXPECTED FROM S&P FEDERAL HOME LOAN MORTGAGE CORP 1 BILLION OF STRIPPED MORTGAGEBACKED SECURITIES GOLD TRUST 154 OFFERED BY UNDERWRITER NOMURA SECURITIES INTERNATIONAL INC THE ISSUE IS BACKED BY 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 798 AND WEIGHTED AVERAGE MATURITY OF 352 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 835 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1590 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 359 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY CITIBANK THE OFFERING SERIES 1592 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7125 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 74 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 1591 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 705 AND WEIGHTED AVERAGE MATURITY OF 359 MONTHS AEGON NV NETHERLANDS SUBORDINATED 65 EUROBONDS DUE SEPT 15 2003 VIA BANK VAN HAFTEN LABOUCHIERE NV IN TAP ISSUE MINIMUM SIZE 150 MILLION DUTCH GUILDERS MAXIMUM 500 MILLION GUILDERS INITIAL OFFER PRICE TO SEPT 30 IS 998 TO YIELD 653 A MARGIN OF 35 BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN AFTER SEPT 30 BANK VAN HAFTEN WILL ANNOUNCE DAILY OFFER PRICE BETWEEN 9 AM AND 11 AM DUTCH TIME TO AMSTERDAM STOCK EXCHANGE FEES UNDISCLOSED ALLIANCE & LEICESTER UK 200 MILLION OF FLOATINGRATE EUROBONDS DUE SEPTEMBER 1998 AT ISSUE PRICE PAR REOFFERED AT 99375 VIA SAMUEL MONTAGU & CO INTEREST PAYABLE SEMIANNUALLY AT 00625 POINT POINT ABOVE THREEMONTH LONDON INTERBANK OFFERED RATE FOR POUNDS FEES 08 POINT BELLSOUTH TELECOMMUNICATIONS INC US PARENT 300 MILLION OF 6125 EUROBONDS DUE SEPT 23 2008 AT ISSUE PRICE 10198 VIA MORGAN STANLEY INTERNATIONAL REOFFERED AT 9988 TO YIELD 613 A SPREAD OF 50 BASIS POINTS ABOVE 575 US TREASURY NOTE DUE 2003 FEES 25 POINTS BRITISH TELECOMMUNICATIONS PLC UK 500 MILLION OF 7125 EUROBONDS DUE SEPT 15 2003 AT ISSUE PRICE 9916 VIA LEHMAN BROTHERS INTERNATIONAL AND SG WARBURG SECURITIES LTD REOFFERED AT 100835 TO YIELD 7006 A MARGIN OF 18 BASIS POINTS ABOVE COMPARABLE GILT FEES TWO POINTS CREDIT NATIONAL DE FRANCE FRANCE ONE BILLION FRENCH FRANCS OF 725 EUROBONDS DUE MAY 14 2003 AT ISSUE AND REOFFER PRICE 10455 VIA CREDIT COMMERCIAL DE FRANCE BONDS YIELD 659 A SPREAD OF 32 BASIS POINTS ABOVE COMPARABLE FRENCH TREASURY BONDS WILL TRADE INTERCHANGEABLY WITH THREE BILLION FRANCS OF OUTSTANDING IDENTICAL BONDS ALL OTHER TERMS UNCHANGED FEES 0375 POINT CREDITO ITALIANO HONG KONG BRANCH ITALIAN PARENT 150 MILLION OF SUBORDINATED COLLARED FLOATINGRATE EURONOTES DUE SEPT 24 2003 AT ISSUE PRICE PAR VIA KIDDER PEABODY SECURITIES CO AND CREDITO ITALIANO SPA INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH LIBOR FOR DOLLARS LESS 01875 POINT SUBJECT TO MINIMUM COUPON 575 AND MAXIMUM 10 FEES 05 POINT DEPFA BANK GMBH GERMANY 150 MILLION MARKS OF REVERSECOUPON FLOATINGRATE EURONOTES DUE JAN 17 1999 AT ISSUE PRICE 101875 VIA MORGAN STANLEY GMBH REOFFERED AT PAR INTEREST PAYABLE ANNUALLY AT 7 UNTIL JANUARY 1994 THEREAFTER INTEREST FLOATS SEMIANNUALLY AT 17375 MINUS TWICE SIXMONTH LIBOR FOR MARKS FEES 2125 POINTS DEUTSCHE SIEDLUNGS UND LANDESRENTENBANK GERMANY 150 BILLION ITALIAN LIRE OF 89375 EUROBONDS DUE OCT 2 2003 AT ISSUE PRICE 101675 AND REOFFER PRICE PAR VIA BANCO DI ROMA AND NOMURA INTERNATIONAL PLC REOFFERED AT PAR TO YIELD 894 BONDS CALLABLE FROM SECOND YEAR AT PAR FEES TWO POINTS GIROCREDITBANK AKTIENGESELLSCHAFT DER SPARKASSEN AUSTRIA 100 MILLION OF SUBORDINATED COLLARED FLOATINGRATE EURONOTES DUE DECEMBER 2003 AT ISSUE AND REOFFER PRICE PAR VIA MERRILL LYNCH INTERNATIONAL LTD INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH LIBOR FOR DOLLARS LESS 025 POINT SUBJECT TO MINIMUM COUPON 55 MAXIMUM COUPON 8 FOR FIRST FIVE YEARS STEPPING UP TO 85 THEREAFTER SHORT LAST COUPON OF THREEMONTH LIBOR LESS 025 POINT FEES 05 POINT JAPAN HIGHWAY AUTHORITY JAPAN 450 MILLION SWISS FRANCS OF 45 PUBLIC BONDS DUE SEPT 24 2003 PRICED AT 10225 VIA INDUSTRIAL BANK OF JAPAN FEES 2375 POINT KANSALLISOSAKEPANKKI FINLAND 150 MILLION OF 50YEAR PERPETUAL SUBORDINATED UNSECURED FLOATINGRATE EURONOTES AT ISSUE AND REOFFER PRICE 9885 VIA SALOMON BROTHERS INTERNATIONAL LTD MATURITY CAN BE EXTENDED FOR ANOTHER 50 YEARS AT HOLDERS' OPTION INTEREST PAYABLE SEMIANNUALLY AT 200 BASIS POINTS OVER SIXMONTH LIBOR FOR DOLLARS FOR FIRST FIVE YEARS STEPPING UP TO 350 BASIS POINTS OVER SIXMONTH LIBOR THEREAFTER CALLABLE ON ANY INTERESTPAYMENT DATE AT PAR ON OR AFTER FIFTH ANNIVERSARY NOT GUARANTEED BY REPUBLIC OF FINLAND FEES ONE POINT REPUBLIC OF FINLAND SOVEREIGN 250 MILLION OF 45 EUROBONDS DUE SEPT 22 1996 AT ISSUE PRICE 99875 VIA SWISS BANK CORP REOFFERED AT 1010625 TO YIELD 4367 A MARGIN OF 28 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES 1375 POINTS VATTENFALL TREASURY AB SWEDISH PARENT 500 MILLION SWEDISH KRONOR OF 7375 EUROBONDS DUE SEPT 28 1998 AT PRICE 10175 VIA SVENSKA HANDESBANK BONDS YIELD 741 AFTER DEDUCTING 1875 FULL FEES GUARANTOR VATTENFALL AB 9308260042 930826 TRAVEL AIR FARES TAKE LEAP BACKWARD ON SHORT HOPS BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL AIR FARES ON SHORTHAUL ROUTES ARE IN A FREE FALL AND IT PROBABLY WILL BE AWHILE BEFORE THEY HIT THE FLOOR IN RECENT MONTHS MAJOR AIRLINES HAVE BEEN CUTTING TICKET PRICES SOMETIMES BY 50 ON ROUTES OF 750 MILES OR LESS THE MOVES UNDERSCORE SEVERAL THREATS TO THE BIG CARRIERS PESKY NOFRILLS COMPETITORS ARE SIPHONING OFF TRAFFIC WITH LOW PRICES AND MANY TRAVELERS ARE SHOWING A GROWING INCLINATION TO DRIVE INSTEAD OF FLY AT THE SAME TIME TICKET PRICES IN MANY SHORTHAUL MARKETS HAVE FALLEN AS MAJOR AIRLINES HAVE SHIFTED 65 OF THEIR ROUTES UNDER 500 MILES TO REGIONAL AFFILIATES THE AFFILIATES FLY SMALLER LESS EXPENSIVE TURBOPROP PLANES WHICH ENABLE THE CARRIERS TO CHARGE LOWER FARES ON THOSE FLIGHTS THE RECENT FARE CUTS ON SHORT TRIPS BY SOME MEASURES ARE LONG OVERDUE TRAVELERS HAVE LONG COMPLAINED THAT THEY PAY MORE PER MILE ON SHORT ROUTES THAN LONG ROUTES THAT'S BECAUSE A PLANE'S HIGH FIXED COSTS ENABLE AN AIRLINE TO CHARGE LESS PER MILE ON LONG FLIGHTS PASSENGERS WILL NOW FIND THEIR BEST DEAL ON SHORTHAUL FARES IN HUB CITIES SUCH AS CHICAGO DALLAS AND ATLANTA WHERE THE AIRLINES MUST DRAW HEAVY TRAFFIC TO OFFSET THE HIGH COSTS OF RUNNING A HUB IN JANUARY DELTA AIR LINES INTRODUCED 50 DISCOUNTS ON FARES FROM ITS ATLANTA HUB TO 15 DESTINATIONS SUCH AS SAVANNAH GA AND KNOXVILLE TENN AND THIS WEEK DELTA ADDED FIVE MORE DESTINATIONS FROM ATLANTA AND 11 FROM ITS CINCINNATI HUB THE FARES AIMED AT BUSINESS TRAVELERS CAN BE USED ONLY FOR EARLY MORNING OR EVENING FLIGHTS AND OTHER RESTRICTIONS INCLUDING A THREEDAY ADVANCE PURCHASE APPLY OTHER AIRLINES INCLUDING AMR CORP'S AMERICAN AIRLINES TRANS WORLD AIRLINES AND UAL CORP'S UNITED AIRLINES ARE MATCHING IN COMPETING MARKETS A DELTA SPOKESMAN SAID THE ACTION WAS DESIGNED TO REVERSE THE RECENT TREND OF TRAVELERS DRIVING INSTEAD OF FLYING SHORTER DISTANCES IF FACED WITH A 600 TICKET PEOPLE WILL DRIVE HE SAID WE'RE JUST GIVING THEM AN OPTION BUT THE AIRLINES MAY HAVE A DIFFICULT TIME PULLING HUGE NUMBERS OFF THE HIGHWAY AT A TIME WHEN GASOLINE PRICES ARE AT A SEVENYEAR LOW FOR EXAMPLE DELTA IS CHARGING 262 ROUNDTRIP BETWEEN CINCINNATI AND CHICAGO WHICH ARE 290 MILES APART BY CAR THAT TRIP COSTS LESS THAN 27 ACCORDING TO THE AMERICAN AUTOMOBILE ASSOCIATION WHICH ADVISES TRAVELERS TO BUDGET 920 FOR EVERY 100 MILES FOR OIL GAS TIRES AND MAINTENANCE MOST OF THE ADVANTAGES POINT TO THE AUTO TRAVELERS ON SHORT TRIPS SAYS AN AAA SPOKESMAN TOM PARSONS EDITOR OF BEST FARES IN ARLINGTON TEXAS SAYS AIRLINES ARE CUTTING FARES IN PART TO KEEP HUBS COMPETITIVE DELTA'S CINCINNATI HUB FOR EXAMPLE COMPETES WITH THE PITTSBURGH AIRPORT WHERE USAIR GROUP INC'S USAIR UNIT HAS A HUB IN MAY USAIR CUT LEISURE FARES BY AN AVERAGE OF 28 ON ROUTES IN THE NORTHEAST USAIR'S MOVE MAY ALSO HAVE LED CONTINENTAL AIRLINES TO CUT FARES ON ROUTES FROM ITS CLEVELAND HUB AFTER THE USAIR INITIATIVE CONTINENTAL CUT ITS CLEVELANDWASHINGTON ADVANCEPURCHASE ROUNDTRIP FARES TO 198 FROM 270 A MOVE THAT KEPT IT COMPETITIVE WITH USAIR'S PITTSBURGHWASHINGTON FARES FARES ON SHORTHAUL ROUTES WILL CONTINUE TO BE UNDER PRESSURE AS SOUTHWEST AIRLINES THE KING OF NOFRILLS LOWFARE SERVICE CONTINUES TO EXPAND IT IS TO ENTER THE BALTIMORE MARKET NEXT MONTH AND IS ADDING 10 TO 15 PLANES TO ITS FLEET NEXT YEAR THERE MAY BE HOWEVER A DOWNSIDE TO ALL THESE FARE CUTS EVERYONE IS TRYING TO LOWER FARES IN SHORTER MARKETS MR PARSONS SAYS BUT THAT MEANS AIRLINES WILL TRY TO RAISE FARES ON LONGER ROUTES 9308260041 930826 INTERNATIONAL BRIEF PT ASTRA INTERNATIONAL TIMBER TYCOON BOOSTS STAKE IN INDONESIAN AUTO MAKER A TIMBER TYCOON HAS INCREASED HIS STAKE IN INDONESIAN AUTO MAKER PT ASTRA INTERNATIONAL LATE LAST WEEK PRAJOGO PANGESTU ASTRA'S DEPUTY CHAIRMAN AND HEAD OF PT BARITO PACIFIC TIMBER INDONESIA'S BIGGEST PLYWOOD MAKER BOUGHT 95 MILLION ASTRA SHARES BOOSTING HIS HOLDING TO 245 MILLION SHARES OR 101 AND MAKING HIM ASTRA'S BIGGEST SHAREHOLDER BROKERS SAY MR PRAJOGO PAID 13300 RUPIAH 634 A SHARE A DISCOUNT OF MORE THAN 8 TO THE STOCK'S MARKET PRICE AT THE TIME OF ABOUT 14500 RUPIAH MOST OF THE SHARES CAME FROM A STATE INVESTMENT FUND THE BROKERS SAY ASTRA'S OWNERSHIP WAS DIFFUSED AFTER THE COLLAPSE LAST YEAR OF THE FOUNDING SOERYADJAYA FAMILY LEAVING NO SINGLE SHAREHOLDER WITH CONTROL LAST WEEK'S TRANSACTION DIDN'T HAVE TO BE ANNOUNCED BECAUSE IT INVOLVED LESS THAN 5 OF THE COMPANY'S SHARES ON FRIDAY SHAREHOLDERS ARE TO SELECT A NEW ASTRA CHAIRMAN MR PRAJOGO REPORTEDLY HAS HIS EYE ON THE POST HOWEVER A POLITICALLY WELLCONNECTED RETIRED GENERAL AR RAMLY IS SUPPOSEDLY FAVORED 9308260040 930826 COMPUTER ASSOCIATES PETITION ISLANDIA NY COMPUTER ASSOCIATES INTERNATIONAL INC PETITIONED A DELAWARE COURT TO DISSOLVE A BANKINGSOFTWARE VENTURE WITH CLOSELY HELD NEWTREND GROUP LP IN A CIVIL ACTION THE COMPUTERSOFTWARE DEVELOPER CITED ACRIMONIOUS RELATIONSHIPS AS ONE OF THE REASONS FOR SEEKING TO END THE VENTURE COMPUTER ASSOCIATES DECLINED TO COMMENT ON THE SUIT OR ON NEWTREND OFFICIALS OF NEWTREND COULDN'T BE REACHED FOR COMMENT THE COMPANY MERGED ITS BANKING SOFTWARE DIVISION WITH NEWTREND GROUP BASED IN ORLANDO FLA IN 1991 AT THAT TIME THE COMPANY SAID THAT COMBINED 1991 REVENUE FOR THE MERGED OPERATIONS WOULD BE 68 MILLION 9308260038 930826 BUSINESS BRIEF SAABSCANIA AB AUTO MAKER EXPECTS 1994 SALES OF 25000 CARS IN US SAABSCANIA AB WILL CONTINUE TO SERVE THE US AS A NICHEMARKET SUPPLIER OF IMPORT VEHICLES SELLING ABOUT 25000 CARS NEXT YEAR SAID WILLIAM KELLY PRESIDENT OF THE SWEDISH AUTO MAKER'S US SALES UNIT SAAB CARS USA INC HAS BEEN PROFITABLE THROUGH JULY MR KELLY SAID FOLLOWING LOSSES A YEAR EARLIER HE DID NOT CITE FIGURES SAAB IS PREPARING TO INTRODUCE ITS 1994 SAAB 900 MIDSIZE SEDAN IN NOVEMBER THE CAR THE MODEL'S FIRST MAJOR REDESIGN SINCE 1978 IS EXPECTED TO SELL IN THE LOW TO MID20000 PRICE RANGE SLIGHTLY LESS THAN IN THE PAST THE CAR IS DEBUTING AS A FIVEDOOR HATCHBACK FOLLOWED BY A THREEDOOR HATCHBACK AND CONVERTIBLE THE SAAB 900 FEATURES A 170HORSEPOWER V6 ENGINE FROM GENERAL MOTORS CORP GM OWNS 50 OF SAABSCANIA AB WITHIN FOUR YEARS SAAB HOPES TO SELL ABOUT 35000 CARS ANNUALLY IN THE US AT ITS PEAK SAAB SOLD 47300 CARS IN THE US IN 1986 THROUGH JULY OF THIS YEAR SAAB'S US UNIT HAS SOLD 11608 CARS DOWN 27 FROM 15979 VEHICLES A YEAR AGO 9308260037 930826 BEYOND THE COLD WAR FOREIGN POLICY IN THE 21ST CENTURY THE MORAL ARGUMENT FOR US LEADERSHIP BY HENRY R NAU PRESIDENTS BUSH AND CLINTON HAVE HAD TROUBLE INTEGRATING BOTH POWER AND IDEALS IN POSTCOLD WAR FOREIGN POLICY MR BUSH PURSUED A NEW WORLD ORDER BASED ON RESISTING TERRITORIAL AGGRESSION AND BALANCING POWER BUT HE LACKED VISION MR CLINTON PROMISED A MORE VISIONARY FOREIGN POLICY TO HELP BUILD DEMOCRACY AROUND THE WORLD PARTICULARLY IN RUSSIA BUT HE IS CUTTING DEFENSE OUTLAYS BY MUCH MORE THAN MR BUSH PROPOSED AND SEEMS RELUCTANT TO USE FORCE IN FOREIGN AFFAIRS EVEN TO THE POINT OF ACCEPTING THE RESULTS OF TERRITORIAL CONQUEST IN THE FORMER YUGOSLAVIA CONTAINMENT THE POLICY THAT GUIDED AMERICAN FOREIGN POLICY IN THE COLD WAR SUCCEEDED BECAUSE IT DID INTEGRATE AMERICAN POWER AND IDEALS NSC68 THE DOCUMENT THAT LAID OUT THE CONTAINMENT DOCTRINE PREMISED AMERICA'S DEFENSE NOT JUST ON POWER BUT ALSO ON THE MORAL WORTH OF A FREE SOCIETY FOUNDED UPON THE DIGNITY AND WORTH OF THE INDIVIDUAL IT AUTHORIZED THE USE OF FORCE TO DEFEND THAT SOCIETY ONLY TO THE EXTENT THAT SUCH FORCE WAS APPROPRIATELY CALCULATED AND NOT SO EXCESSIVE OR MISDIRECTED AS TO MAKE US ENEMIES OF THE PEOPLE INSTEAD OF THE EVIL MEN WHO ENSLAVED THEM NEW GUIDELINES FOR US FOREIGN POLICY AFTER THE COLD WAR MUST ALSO START WITH A CLEAR SENSE OF AMERICA'S MORAL SELFWORTH UNLESS THE US REMAINS FREE AND PROGRESSIVE FOR EACH OF ITS CITIZENS WHO SEEKS EQUALITY IT LOSES ITS MORAL CORE AND ITS MORAL RIGHT TO USE FORCE IN WORLD AFFAIRS AMERICA IS THE DEMOCRATIC WORLD'S MOST DIVERSE SOCIETY NEARLY 30 OF THE POPULATION BELONGS TO VISUALLY DISTINCT RACIAL OR ETHNIC MINORITIES MORE THAN THREE TIMES THE PERCENTAGE OF ANY OTHER INDUSTRIAL NATION AS SUCH AMERICA IS THE WORLD'S CONTINUING TEST CASE FOR A TOLERANT MULTICULTURAL DEMOCRACY THAT IT HAS MET THIS TEST SO FAR IS ITS GREATEST ASSET IN FOREIGN AFFAIRS THE WORLD TENDS TO TRUST AMERICA'S LEADERSHIP OVER THAT OF MORE HOMOGENEOUS SOCIETIES BECAUSE AMERICA COPES DAILY WITH ETHNIC AND RACIAL ISSUES WITHIN ITS OWN SOCIETY THUS PRESIDENT CLINTON SHOULD NOT VIEW TIME SPENT ON FOREIGN POLICY AS A DIVERSION FROM DOMESTIC AFFAIRS OR PORTRAY DOMESTIC PRIORITIES AS BEING IN CONFLICT WITH FOREIGN RESPONSIBILITIES ANYTHING HE ACCOMPLISHES DOMESTICALLY CONTRIBUTES DIRECTLY TO FOREIGN POLICY SIMILARLY IF HE IGNORES OFFENSES TO FREEDOM AND HUMAN RIGHTS ABROAD IT WILL NOT BE LONG BEFORE SUCH CYNICISM ERODES TOLERANT MULTICULTURAL RELATIONS AT HOME A SECOND GUIDELINE FOR THE NEW FOREIGN POLICY FOLLOWS FROM THE FIRST AMERICAN INTERESTS ARE INEXTRICABLY TIED UP WITH THOSE OF OTHER DEMOCRATIC SOCIETIES CONTAINMENT RECOGNIZED THIS FACT IN THE COMMON INSTITUTIONS NATO GATT ETC THAT POWERED THE WESTERN NATIONS TO VICTORY IN THE COLD WAR TODAY FOR THE FIRST TIME ALL OF THE INDUSTRIAL NATIONS ARE SOLIDLY DEMOCRATIC US RELATIONS WITH THESE COUNTRIES HAVE TRANSCENDED TRADITIONAL BALANCEOFPOWER POLITICS DEMOCRATIC STATES DEFINED IN TERMS OF A BROAD VOTING FRANCHISE FAIR AND COMPETITIVE ELECTIONS AND PROTECTION OF BASIC INDIVIDUAL RIGHTS HAVE NEVER FOUGHT ONE ANOTHER THEY DO NOT EVEN ESCALATE DISPUTES TO THE LEVEL OF MILITARY THREATS BUT RESOLVE DISPUTES THROUGH OPEN PROCEDURES OF LAW DIPLOMACY AND COMMERCE THAT DOES NOT MEAN THAT INDUSTRIAL NATIONS DO NOT COMPETE ECONOMICALLY AND CULTURALLY BUT TO FAIL TO DISTINGUISH RIVAL ECONOMIES OR RIVAL CAPITALISMS FROM THE RIVAL NATIONALISMS AND OTHER ISMS THAT HAVE DIVIDED INDUSTRIAL STATES OVER THE PAST TWO CENTURIES IS MERCHANT PAROCHIALISM AT ITS WORST PRESIDENT CLINTON WOULD DO WELL NOT TO LET HIS FUNDAMENTAL POLICIES TOWARD JAPAN OR EUROPE BE DECIDED EXCLUSIVELY BY TRADE NEGOTIATORS INSTEAD RELATIONS AMONG INDUSTRIAL NATIONS SHOULD BE GUIDED BY A THIRD PRINCIPLE OF POSTCOLD WAR FOREIGN POLICY THE NEED AND OPPORTUNITY TO BUILD DEMOCRACIES AND FREE MARKETS IN THE FORMER COMMUNIST COUNTRIES AND PARTS OF THE DEVELOPING WORLD BECAUSE DEMOCRACIES DO NOT FIGHT ONE ANOTHER THIS POLICY IS NOT IDEALISM BUT A REALISTIC INVESTMENT IN NATIONAL SECURITY IN THIS NATIONAL SECURITY CONTEXT TRADE POLICIES ARE NOT JUST ABOUT JOBS THEY ARE ABOUT CREATING AN ATMOSPHERE OF OPENNESS AND FREEDOM THAT ENABLES REFORMING COUNTRIES TO FIND THEIR OWN WAY PEACEFULLY TOWARD GREATER PROSPERITY AND PLURALISM IF THE OLD DEMOCRACIES FRAGMENT OVER TRADE ISSUES THE NEW DEMOCRACIES WILL SURELY FAIL MOREOVER OPEN MARKETS DO NOT COST JOBS THEY CREATE AND CHANGE JOBS EMPLOYMENT IN THE US GREW BY 20 MILLION JOBS OVER THE PAST 20 YEARS 50 MORE THAN IN ANY OTHER INDUSTRIAL NATION THIS OVERALL JOB CREATION REPRESENTED A SHIFT FROM LOWER TO HIGHERSKILLED MANUFACTURING AND SERVICE INDUSTRIES WITH HIGHER WAGES FOR THE SKILLED AND NO NET LOSS OF MANUFACTURING OUTPUT AS A SHARE OF GROSS NATIONAL PRODUCT THIS SHIFT WAS INDUCED NOT BY IMPORTS BUT BY TECHNOLOGY BECAUSE AMERICA HAS BEEN MORE WILLING THAN EUROPE OR EVEN JAPAN TO PUT NEW TECHNOLOGY TO WORK IN BOTH MANUFACTURING AND SERVICE INDUSTRIES AMERICA HAD HIGHER PRODUCTIVITY GROWTH IN MANUFACTURING IN THE 1980S THAN ALL OTHER INDUSTRIAL COUNTRIES WITH THE EXCEPTION OF BRITAIN AND JAPAN ALTHOUGH THE US HAD CAUGHT UP WITH BOTH OF THESE COUNTRIES BY THE END OF THE DECADE AND IS MORE COMPETITIVE TODAY BY FAR IN THE SERVICE SECTORS TELECOMMUNICATIONS FINANCE AIRLINES ETC THAN ANY OF ITS INDUSTRIAL ALLIES US MANUFACTURING EXPORTS WHICH HAVE SOARED IN RECENT YEARS CREATE MOST OF THE GROWTH OF HIGHWAGE JOBS IN AMERICA AND AMERICAN SERVICE EXPORTS YIELDED A 60 BILLION TRADE SURPLUS IN 1992 WHY WOULD ANYONE WANT TO TRADE THIS KIND OF PERFORMANCE AND A 68 UNEMPLOYMENT RATE IN THE US FOR A 103 UNEMPLOYMENT RATE IN EUROPE EXPECTED TO GROW TO 12 BY THE END OF 1994 RATHER THAN IMITATING EUROPE WHICH IS MORE RELUCTANT TO CHANGE OR JAPAN WHICH IS A RACIALLY HOMOGENEOUS SOCIETY THE US SHOULD CONTINUE TO LEAD THESE COUNTRIES VIGOROUSLY TOWARD FURTHER OPENNESS AND FREER TRADE ESPECIALLY IN RELATIONS WITH THE NEW DEMOCRACIES IN EUROPE AND DEVELOPING COUNTRIES SUCH AS MEXICO OF COURSE THE US HAS TO BARGAIN TOUGH WITH ITS TRADING PARTNERS THE REAL ISSUES ARE 1 WHETHER THE US BARGAINS WITH A SENSE OF ITS CONTINUING ECONOMIC STRENGTH OR ACTS AS IF IT IS A VICTIM OF FOREIGN COMMERCIAL SUPERIORITY AND CONSPIRACY AND 2 WHETHER THE GOAL REMAINS FREER GLOBAL MARKETS UNDER COMMON RULES OR BECOMES REGIONAL PACTS THAT SUBSTITUTE FOR GLOBALISM AND BILATERAL PACTS THAT PREDETERMINE RESULTS AND RESTRICT FREEDOM SUCCESS IN INTEGRATING THE NEW DEMOCRACIES INTO THE INDUSTRIAL WORLD IS NECESSARY TO UNDERPIN A FINAL PRINCIPLE OF POSTCOLD WAR US FOREIGN POLICY THE NEED TO CONTAIN PERSISTING ANTIDEMOCRATIC FORCES IN THE BALKANS MIDDLE EAST AND EAST ASIA US POWER IN THESE REGIONS REMAINS INDISPENSABLE TO PROTECT FREEDOM JUST AS IT WAS TO CONTAIN COMMUNISM IN EUROPE ETHNIC AND RELIGIOUS WARS IN THE BALKANS AND MIDDLE EAST THREATEN BUDDING DEMOCRACIES IN HUNGARY RUSSIA AND OTHER FORMER COMMUNIST STATES A CORRUPT AND PARANOID COMMUNIST GOVERNMENT IN NORTH KOREA HUSBANDS A SECRET NUCLEAR WEAPONS PROGRAM AND THREATENS SOUTH KOREA'S SAFETY AS WELL AS JAPAN'S LONGTERM ABILITY TO REMAIN NONNUCLEAR AND AVOID A MAJOR MILITARY BUILDUP THAT WILL DESTABILIZE ALL OF ASIA NONE OF THE AUTHORITARIAN SYSTEMS IN THE BALKANS MIDEAST AND EAST ASIA POSE THE IMMEDIATE MILITARY THREAT THAT PROMPTED CONTAINMENT IN CENTRAL EUROPE IN THE LATE 1940S BUT ALL ARE DANGEROUS ETHNIC CLEANSING IN BOSNIA CAN ONLY ENCOURAGE SEPARATISM AND LAWLESSNESS IN OTHER HOT SPOTS OF THE FORMER COMMUNIST WORLD SOME MORE CRUCIAL TO THE BALANCE OF POWER SUCH AS THE CRIMEA OR UKRAINE HUMILIATION OF THE UNITED NATIONS IN EUROPE WEAKENS COLLECTIVE PEACEKEEPING ELSEWHERE IN CAMBODIA OR SOMALIA AND SETS BACK CRUCIAL UN EFFORTS TO CONTAIN THE SPREAD OF NUCLEAR WEAPONS IN UKRAINE IRAQ AND KOREA AGAINST SUCH THREATS THE US MUST LEAD IT SHOULD TRY TO DO SO THROUGH THE UN MUCH AS IT LED IN THE COLD WAR THROUGH NATO BUT AS IT DID IN THE COLD AND GULF WARS IT WILL HAVE TO BE READY FROM TIME TO TIME TO PUSH NATO AND THE UN TO ACT MORE DECISIVELY APPLYING PROPORTIONATE FORCE ALONG THE LINES RECOMMENDED IN THE CONTAINMENT DOCTRINE THE CHOICE IS NOT BETWEEN THE USE OF FORCE AND NO FORCE BUT BETWEEN ACTING NOW OR HAVING TO USE MORE FORCE LATER IF THE US FAILS TO DRAW THE LINE IN SARAJEVO TODAY CAN IT HOLD THE LINE IN MACEDONIA TOMORROW WITH ONLY 300 AMERICAN TROOPS SUCCESSFUL FOREIGN POLICY GROWS OUT OF A SENSE OF MORAL SELFWORTH AND CORRESPONDING LEADERSHIP AND STRENGTH IN WORLD AFFAIRS AMERICA'S SELFWORTH REQUIRES STEADY PROGRESS TOWARD A TOLERANT MULTIETHNIC SOCIETY AT HOME AND ITS LEADERSHIP ABROAD IS BOTH THE SUREST GUARANTEE AGAINST CORROSIVE CYNICISM AT HOME AND THE BEST DEFENSE OF NEW DEMOCRACIES AGAINST OLD DESPOTS WHEREVER THE LATTER STILL THREATEN THE WORTH AND DIGNITY OF FREE INDIVIDUALS MR NAU A PROFESSOR AT GEORGE WASHINGTON UNIVERSITY IS THE AUTHOR OF THE MYTH OF AMERICA'S DECLINE OXFORD UNIVERSITY PRESS 1992 PAPERBACK 9308260036 930826 CORRECTIONS & AMPLIFICATIONS ROBERT SHAYE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NEW LINE CINEMA CORP DIDN'T FALL ILL IN 1990 A COMPANY SPOKESMAN SAID BASED ON ACCOUNTS OF INDIVIDUALS A WHO'S NEWS ARTICLE MONDAY ASSERTED THAT HE BECAME ILL THAT YEAR ALSO MR SHAYE SECURED NORTH AMERICAN DISTRIBUTION RIGHTS TO THE TEENAGE MUTANT NINJA TURTLES MOVIE WHILE THE COMPANY'S PRESIDENT MICHAEL LYNNE OBTAINED SIMILAR RIGHTS TO THE SEQUEL THE ARTICLE INCORRECTLY CREDITED THE PRESIDENT WITH SECURING THE RIGHTS TO THE ORIGINAL MOVIE FORTIS INC IS THE PARENT OF TIME INSURANCE CO IN A YOUR MONEY MATTERS COLUMN AUG 18 ABOUT MEDICAL INSURANCE FOR UNEMPLOYED COLLEGE GRADUATES FORTIS WAS MISSPELLED 9308260035 930826 INTERNATIONAL BRIEF ALCATELALSTHOM SA FRENCH CONCERN SELLS BLOCK OF STOCK IN ALCATEL CABLE FRENCH ENERGY TRANSPORTATION AND TELECOMMUNICATIONS GROUP ALCATELALSTHOM SA SOLD A BLOCK OF 18 MILLION SHARES IN ALCATEL CABLE AT 600 FRANCS 103 A SHARE ON THE SECOND MARKET OF THE PARIS BOURSE THE TRANSACTION WHICH REPRESENTS ABOUT 4 OF ALCATEL CABLE IS AIMED AT INCREASING THE MARKET CAPITALIZATION OF THE UNIT TO PREPARE IT FOR LISTING ON THE MAIN MARKET OF MONTHLY ACCOUNTS A SPOKESWOMAN FOR ALCATELALSTHOM SAID ALCATELALSTHOM STILL CONTROLS ABOUT 78 OF ALCATEL CABLE CURRENTLY THE MOST ACTIVELY TRADED COMPANY ON THE SECOND MARCHE OF SMALLERCAPITALIZATION ISSUES ALCATELALSTHOM'S SHARE PRICE JUMPED 18 OR 13 FRANCS TO 735 FRANCS A SHARE ALCATEL CABLE MEANWHILE ENDED AT 606 FRANCS A SHARE DOWN 13 FRANCS OR 21 THE UNIT'S SHARE PRICE HAD SOARED 23 TUESDAY ON VOLUME OF 17000 SHARES ON SPECULATION OVER THE PLACEMENT 9308260034 930826 BUSINESS BRIEF ICN PHARMACEUTICALS INC US COURT LIFTS BAN CLEARS WAY FOR TAKEOVER ATTEMPT A FEDERAL APPEALS COURT IN NEW YORK LIFTED A PRELIMINARY INJUNCTION BLOCKING CALIFORNIA STOCKBROKER RAFI M KHAN FROM PURSUING HIS ATTEMPT TO REPLACE ICN PHARMACEUTICALS INC'S BOARD OF DIRECTORS THE LOWER COURT THAT IMPOSED THE INJUNCTION ALSO HAD RULED THAT MR KHAN A SECURITIES BROKER FORMERLY WITH HJ MEYERS & CO HAD BREACHED A FIDUCIARY DUTY TO ICN RELATED TO HIS ROLE IN HELPING TO SELL SECURITIES OF AN ICN SUBSIDIARY ICN IS A HOLDING COMPANY WHICH OWNS 70 OF THE COMMON STOCK OF THE DRUG MANUFACTURING CONCERN VIRATEK INC THE APPEALS COURT SAID THAT A PERMANENT BAN AGAINST PARTICIPATION IN A TAKEOVER SHOULD RARELY IF EVER BE IMPOSED BECAUSE OF SECURITIES LAW VIOLATIONS AND CERTAINLY ONLY AS A LAST RESORT IT SENT THE CASE BACK TO THE LOWER COURT FOR FURTHER PROCEEDINGS 9308260033 930826 BUSINESS BRIEF MCI COMMUNICATIONS CORP UNIT IS FORMED TO IMPROVE MARKETING OF DATA SERVICES MCI COMMUNICATIONS CORP IN AN EFFORT TO IMPROVE MARKETING OF ITS HIGHSPEED DATA SERVICES TO MAJOR BUSINESSES SAID IT CONSOLIDATED OPERATIONS UNDER A NEW DIVISION CREATION OF THE DATA SERVICES DIVISION WAS PARTLY SPURRED BY THE CUSTOMERS' SHIFT FROM PRIVATE LINES TO FASTER AND MORE COSTEFFICIENT PUBLIC NETWORKS THE WASHINGTONBASED LONG DISTANCE CARRIER SAID SUCH NETWORKS ARE USED BY LARGE BUSINESSES TO TRANSFER MILLIONS OF BITS OF INFORMATION IN MICROSECONDS THE 6 BILLION TO 8 BILLION INDUSTRY IS GROWING AT A 10 TO 12 RATE A SPOKESWOMAN SAID ROBERT HARCHARIK 53 YEARS OLD WAS NAMED THE DIVISION'S GENERAL MANAGER MR HARCHARIK WHO WAS WITH THE COMPANY IN THE EARLY 1980S HELPED DEVELOP MCI MAIL AN ELECTRONIC MAIL SERVICE HE MOST RECENTLY SERVED AS A CONSULTANT TO MCI 9308260032 930826 HEARD ON THE STREET PHILIP MORRIS STOCK ALREADY BATTERED DECLINES AS COMPANY FAILS TO RAISE QUARTERLY DIVIDEND BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL UNTIL YESTERDAY A LOT OF INVESTORS WERE STILL IN HEAVY DENIAL ABOUT PHILIP MORRIS'S STOCK WHICH HAS TAKEN A TUMBLE SINCE THE COMPANY UNLEASHED A CIGARETTE PRICE WAR THIS SPRING AFTER ALL THE COMPANY HAD BEEN HINTING IT MIGHT RAISE ITS DIVIDEND AT THE AUGUST BOARD MEETING AND SOME INVESTORS WERE STILL KEEPING THEIR FINGERS CROSSED THAT THE COMPANY WOULD BOOST ITS STOCK PRICE BY SPINNING OFF ITS TOBACCO OPERATIONS OR THROUGH A BIG SHAREREPURCHASE PROGRAM ONE BY ONE HOWEVER THOSE THEORIES ARE UNRAVELING AND YESTERDAY PHILIP MORRIS DELIVERED A DOSE OF COLD HARD REALITY TO INVESTORS BY MAINTAINING ITS REGULAR QUARTERLY DIVIDEND OF 65 CENTS A SHARE WHEN INVESTORS WERE EXPECTING A 3 TO 10 INCREASE THE STOCK DECLINED IN RESPONSE CLOSING AT 48875 DOWN 225 THE POSSIBILITY OF A DIVIDEND INCREASE WAS MORE THAN OPTIMISTIC THINKING ON THE PART OF INVESTORS CHAIRMAN MICHAEL MILES TOLD THE ANNUAL MEETING IN APRIL THAT THE BOARD WOULD CONSIDER A POSSIBLE INCREASE IN ITS DIVIDEND IN AUGUST WHEN AUGUST CAME HOWEVER THE BOARD HAD OTHER IDEAS IN A STATEMENT YESTERDAY THE COMPANY SAID THE CONTINUING VOLATILITY IN THE DOMESTIC CIGARETTE BUSINESS MAKES MAINTENANCE OF THE CURRENT DIVIDEND RATE THE MOST PRUDENT COURSE OF ACTION AT THIS TIME ANALYSTS DIDN'T LIKE THE SOUND OF THAT AND A STRING OF FORMER BULLS ON THE STOCK DOWNGRADED THEIR RATINGS IN RAPIDFIRE SUCCESSION AMONG THEM WAS SMITH BARNEY ANALYST RONALD MORROW WHO PUT OUT A STATEMENT YESTERDAY MORNING FORESHADOWING THE EXPECTED DIVIDEND INCREASE AND THEN RUSHED TO CHANGE HIS RATING ON THE STOCK TO NEUTRAL FROM OUTPERFORM AFTER THE ANNOUNCEMENT MERRILL LYNCH FIRST BOSTON AND GOLDMAN SACHS ALSO DOWNGRADED THE STOCK ON THE NEWS GOLDMAN ANALYST MARC COHEN SAID HE IS TROUBLED BY MANAGEMENT'S INDICATIONS THAT THE UNCERTAIN SITUATION IN THE US CIGARETTE MARKET WAS A JUSTIFICATION FOR NOT INCREASING THE DIVIDEND HE'S FRETTING ABOUT THE POSSIBILITY THAT PHILIP MORRIS IS ABOUT TO TURN UP THE HEAT IN THE CIGARETTE PRICE WAR THAT IT IGNITED IN APRIL WHEN IT BEGAN CUTTING PRICES ON MARLBORO WITH HOPES FOR A DIVIDEND INCREASE DASHED THE BEST CHANCE INVESTORS HAVE FOR A QUICK REBOUND IN THE STOCK IS THE POSSIBILITY OF A MASSIVE SHAREREPURCHASE PROGRAM OR SOME OTHER TYPE OF RESTRUCTURING TALK ABOUT SUCH A PLAN IS PARTLY FUELED BY THE FACT THAT PHILIP MORRIS HAS SAID IT WILL PRODUCE 62 BILLION IN CASH FLOW THIS YEAR BUT DON'T EXPECT THE COMPANY TO DO ANYTHING OUT OF THE ORDINARY WITH ITS GOBS OF CASH SAYS JOHN MAXWELL AN ANALYST WITH WHEAT FIRST SECURITIES HE EXPECTS PHILIP MORRIS TO PROCEED WITH ITS ONGOING SHAREREPURCHASE PROGRAM WHICH CALLS FOR PERIODIC MODERATE STOCK BUYBACKS RIGHT NOW THE COMPANY HAS 12 BILLION TO BUY BACK 173 MILLION OF ITS 876 MILLION SHARES OUTSTANDING THAT PROGRAM HAS NO MEANING FOR THE STOCK MR MAXWELL SAYS FURTHERMORE HE SAYS HE IS PUZZLED BY CONTINUED TALK ABOUT A SPINOFF OF THE COMPANY'S TOBACCO DIVISION WHEN HE BELIEVES THAT PROSPECT IS HIGHLY UNLIKELY A PHILIP MORRIS SPOKESMAN DECLINED COMMENT MR BLACK SAYS THAT BASED ON FOCUS GROUPS RUN BY SANFORD BERNSTEIN HE BELIEVES SOME CONSUMERS SWITCHED FROM DISCOUNT BRANDS TO MARLBORO FOLLOWING THE PRICE CUTS LOADING UP THEIR REFRIGERATORS WITH UNOPENED PACKS OF MARLBOROS NOW THAT MANY OF THESE SMOKERS ARE FLUSH WITH CIGARETTES HOWEVER HE BELIEVES SALES ARE TAPERING OFF HIS VIEW HE SAYS IS THAT THE 40CENTAPACK PRICE CUT ULTIMATELY WILL LEAD TO A RATCHETING DOWN OF THE ENTIRE INDUSTRY PRICING STRUCTURE LEAVING MARLBORO NO BETTER OFF THAN WHERE IT STARTED ABOUT A YEAR FROM NOW HE SAYS HE THINKS MARLBORO WILL REALIZE ITS MISTAKE AND BEGIN REVERSING THE PROCESS OTHERS AGREE THAT THE COMPANY'S STRATEGY ISN'T DOING THE TRICK SAYS DAVID GOLDMAN AN ANALYST WITH OPPENHEIMER & CO THE OLD NEMESIS OF TRADEDOWN TO CHEAPER CIGARETTES HAS NOT BEEN CONTROLLED THE REAL PROBLEM IS THAT THE DIFFERENCE BETWEEN THE PRICE OF A PACK OF MARLBOROS AND DISCOUNT BRANDS ISN'T CLOSE ENOUGH TO PREVENT CONSUMERS FROM TRADING DOWN HE ADDS EVEN IF ITS STRATEGY PROVES TO BE A GOOD ONE PHILIP MORRIS FACES AN UPHILL BATTLE ITS ANNOUNCEMENT YESTERDAY IS AN INDICATION THAT THE COMPANY FEELS THE COMPETITIVE ENVIRONMENT IN THE DOMESTIC TOBACCO MARKET IS NOT AS GOOD AS IT WAS A MONTH AGO THIS IS NOT ONLY NEGATIVE FOR PHILIP MORRIS BUT REALLY FOR EVERYBODY ELSE IN THE INDUSTRY SAYS REBECCA BARFIELD AN ANALYST AT FIRST BOSTON IN COMMENTS CIRCULATED TO CLIENTS DIEHARD OPTIMISTS MAY STILL BE CLINGING TO THE NOTION THAT THE STOCK WILL RISE SOON BECAUSE THE COMPANY HAS MADE IT THROUGH TOUGH TIMES BEFORE EVEN THAT MAY BE UNWARRANTED OPTIMISM HOWEVER SAYS OPPENHEIMER'S MR GOLDMAN WHO BELIEVES MANY EARNINGS ESTIMATES BY OTHER ANALYSTS EXCEED THE COMPANY'S CAPABILITIES 9308260031 930826 BUSINESS BRIEF READER'S DIGEST PROFIT FELL IN ITS 4TH QUARTER ON FLAT US REVENUE PLEASANTVILLE NY READER'S DIGEST ASSOCIATION INC'S NET INCOME SLIPPED 17 IN THE FISCAL FOURTH QUARTER AS GROWTH IN US REVENUE WAS FLAT AND OPERATING PROFIT FELL 10 THE PUBLISHING COMPANY INDICATED THAT ITS US BOOKS AND HOME ENTERTAINMENT PRODUCTS UNIT IS STILL FACING DIFFICULTIES WHILE OVERSEAS RESULTS WERE HURT BY THE STRONGER US DOLLAR INCLUDING CERTAIN ACCOUNTING CHANGES NET FOR THE FOURTH QUARTER ENDED JUNE 30 FELL 17 TO 258 MILLION OR 22 CENTS A SHARE FROM 262 MILLION OR 22 CENTS A SHARE A YEAR EARLIER WITHOUT THE ACCOUNTING CHANGES NET WOULD HAVE BEEN 268 MILLION OR 23 CENTS A SHARE REVENUE CLIMBED 64 TO 6444 MILLION FROM 6054 MILLION IN 1992 INTERNATIONAL REVENUE WHICH ROSE 11 WOULD HAVE INCREASED 17 WITHOUT THE STRONGER DOLLAR WHILE OPERATING PROFIT WOULD HAVE INCREASED ABOUT 11 WITHOUT THE CURRENCY EFFECT IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING READER'S DIGEST SHARES FELL 150 OR 37 TO CLOSE AT 38825 THE COMPANY SAID IT IS STILL MOVING TO RETURN THE US BOOKS AND HOME ENTERTAINMENT BUSINESS TO ITS HISTORIC GROWTH BUT REITERATED COMMENTS LAST MAY THAT THE PLAN COULD TAKE 12 TO 24 MONTHS HOME ENTERTAINMENT PRODUCTS INCLUDE MUSIC PACKAGES WITH DISKS AND CASSETTES AND VIDEOTAPES THE COMPANY DIDN'T BREAK OUT RESULTS OF THE US BOOKS AND HOME ENTERTAINMENT SEGMENT ALTHOUGH IT DID SAY REVENUE DECLINED WORLDWIDE THE SEGMENT'S REVENUE ROSE 12 TO ALMOST 2 BILLION WHILE OPERATING PROFIT ROSE 3 TO 3124 MILLION 9308260030 930826 BUSINESS BRIEF JLG INDUSTRIES INC OUSTED CHAIRMAN TO PRESENT SLATE OF 10 PEOPLE FOR BOARD JOHN L GROVE WHO WAS OUSTED FROM HIS POST AS JLG INDUSTRIES INC'S CHAIRMAN IN MAY SAID HE WILL NOMINATE 10 INDIVIDUALS TO THE COMPANY'S BOARD THE NOMINATIONS WHICH WERE DISCLOSED IN A SECURITIES AND EXCHANGE COMMISSION FILING ARE PART OF A LONGRUNNING DISPUTE BETWEEN MR GROVE AND THE MCCONNELLSBURG PA MAKER OF HYDRAULIC MACHINERY THAT HE COFOUNDED AFTER COMPLAINING THAT MR GROVE COUNTERMANDED MANAGEMENT DECISIONS JLG'S BOARD MADE HIM NONEXECUTIVE CHAIRMAN LAST YEAR IN APRIL MR GROVE UNSUCCESSFULLY TRIED TO PERSUADE THE BOARD TO CALL A SPECIAL SHAREHOLDERS MEETING IN HOPES OF UNSEATING A MAJORITY OF THE BOARD EARLIER THIS MONTH JLG FILED A LAWSUIT AGAINST HIM ALLEGING THAT HE VIOLATED SECURITIES LAWS BY NOT FILING PROXY MATERIALS WITH THE SEC WHEN HE BEGAN RECRUITING A SLATE OF NOMINEES HE DENIED THE CHARGES JLG SAID IT WAS DISAPPOINTED IN MR GROVE'S DECISION JLG WILL PRESENT ITS OWN SLATE TO HOLDERS AT THE ANNUAL MEETING IN NOVEMBER MR GROVE HOLDS A 189 STAKE OR 690926 COMMON SHARES IN JLG 9308260029 930826 THE PIPES THE PIPES ARE CALLING BUT GET AN UNEXPECTED ANSWER BY JENNIFER CODY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN IT COMES TO SQUEEZING OUT A LIVING JAZZ MUSICIAN RUFUS HARLEY JR FIGURES HE'S FOUND A UNIQUE FORMULA IN THE BAGPIPES HE CLAIMS TO BE THE WORLD'S FIRST AND PERHAPS ONLY JAZZ PIPER GROOVING IN FULL TARTAN ATTIRE HAIR UPSWEPT IN A RASTASTYLE TURBAN AND OFTEN SHADES THE KILT HE SAYS CAME ALONG WITH THE BAGS IT WAS PART OF THE BARGAIN I DON'T FEEL DRESSED UNTIL I PUT MY DRESS ON MR HARLEY BROUGHT HIS BREATHLESS PERFORMANCE TO NEW YORK'S LINCOLN CENTER LAST WEEK FOR AN OUTDOOR CONCERT THAT EARNED CALLS FOR AN ENCORE FROM THE AUDIENCE IT CREATED A NICE MOOD FOR ME TO COME ON AFTER SAYS GUITARIST JIM DRAGONI WHO COORDINATED THE CONCERT THE MUSIC ITSELF IS PERHAPS BEST DESCRIBED BY THE TITLE OF ONE OF MR HARLEY'S ALBUMS SCOTCH AND SOUL IT COMBINES A PONDEROUS BASE LINE WITH THE SOMEWHAT LIGHTER MORE BREATHY MELODY PRODUCING SOME FORCEFUL BUT SURPRISINGLY TOETAPPABLE TUNES MR HARLEY BEGAN AS A SAXOPHONE PLAYER IN THE 1960S BUT SAYS HE HEARD HIS CALLING IN THE SCOTTISH DIRGES PLAYED AT JOHN F KENNEDY'S FUNERAL INSPIRED HE RACED TO A NEW YORK PAWNSHOP TO BUY HIS FIRST SET OF PIPES AND STRUGGLED TO MASTER EVERYTHING FROM AMAZING GRACE TO STORMY WEATHER HE SAYS SOME JAZZ ENTHUSIASTS RECOGNIZE BAGPIPES AS A NATURAL BLUES INSTRUMENT IT'S THAT DRONING AND THE BFLAT AMONG THEM HE SAYS WAS THE LATE JOHN COLTRANE HE HAD BOUGHT A SET AND HE WANTED TO GET INTO THEM I SHOWED HIM AS MUCH AS I COULD MR HARLEY SAYS BUT MAKING MONEY WAS SOMETHING ELSE I COULDN'T EVEN GET PEOPLE TO PLAY WITH ME HE SAYS I BROUGHT MY PIPES INTO ONE CLUB AND GOT FIRED ON THE SPOT DAN FORTE DIRECTOR OF PUBLIC RELATIONS AT NEW YORK'S BLUE NOTE CAFE FOR EXAMPLE SAID THAT WHILE MR HARLEY'S NICHE IS RESPECTED AMONG AFICIONADOS THE CLUB MORE OFTEN TURNS TO ACTS MORE MAINSTREAM AND STRAIGHT AHEAD TO BE SURE 30 YEARS OF PERSISTENCE AS WELL AS SOME WELLPLACED CONNECTIONS HAVE YIELDED SOME PAYOFFS MR HARLEY HAS TOURED WITH SAXOPHONIST SONNY ROLLINS AND UNDER HIS OWN STEAM SECURED GIGS AT JAZZ FESTIVALS FROM MOSCOW TO PARIS BUT IT RUNS HOT AND COLD AFTER FOUR ALBUMS ON ATLANTIC HE'S BACK TO PRODUCING HIS OWN I'M STILL SCUFFLING BUT AT LEAST THE BAG IS SOUNDING GOOD HE SAYS 9308260028 930826 BUSINESS BRIEF MANVILLE CORP A 252 MILLION PREPAYMENT MADE ON OBLIGATIONS TO TRUST MANVILLE CORP SAID IT PREPAID 2521 MILLION ON ITS BOND OBLIGATIONS TO THE MANVILLE PERSONAL INJURY SETTLEMENT TRUST THE DENVER FIBERGLASS AND FOREST PRODUCTS MAKER SAID THE PREPAYMENT CONSISTED OF 150 MILLION IN CASH AND 100 MILLION OF RIVERWOOD INTERNATIONAL CORP NOTES HELD BY MANVILLE PLUS ACCRUED INTEREST MANVILLE SAID IT ANTICIPATED THE PREPAYMENT IN 1992 AND PREVIOUSLY TOOK CHARGES TO COVER IT THE COMPANY SAID IT STILL HAS BOND OBLIGATIONS OF ABOUT 353 MILLION THE TRUST WAS CREATED AT THE TIME OF MANVILLE'S EMERGENCE FROM BANKRUPTCYCOURT PROCEEDINGS TO PAY ASBESTOS HEALTH CLAIMS MADE AGAINST THE COMPANY 9308260027 930826 BUSINESS BRIEF SHARON SPECIALTY STEEL INC UNIT AGREES TO PAY ARREARS TO JOBLESS UNION MEMBERS SHARON SPECIALTY STEEL INC'S SHARON STEEL CORP IN SHARON PA AGREED TO PAY MORE THAN 1 MILLION IN BACK PAY TO ABOUT 2400 MEMBERS OF THE UNITED STEELWORKERS OF AMERICA WHO LOST THEIR JOBS WHEN THE COMPANY CEASED OPERATION AND FILED FOR BANKRUPTCYLAW REORGANIZATION FUNDS FOR THE BACK PAY WILL COME FROM THE SALE OF ABOUT 90500 TONS OF STEEL INVENTORY FROM SHARON'S FARRELL PA PLANT WHICH WAS SHUT DOWN NOV 30 AT THE TIME OF THE SHUTDOWN SHARON HAD NOT PAID WAGES FOR FOUR TO SIX WEEKS TO WORKERS AT PLANTS IN FARRELL MONESSEN AND BRAINARD PA THE UNION SAID THE FARRELL SALE HAS BEEN HINDERED BY UNION PICKETING WHICH WILL CEASE WITH THE BACK PAY AGREEMENT A UNION SPOKESMAN SAID 9308260026 930826 CREDIT MARKETS TREASURY LONG YIELD FALLS TO NEW LOW OF 616 ON WEAK ECONOMIC DATA AND PERSISTENT BUYING BY CRAIG TORRES AND ABBY SCHULTZ STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PRICES OF TREASURY NOTES AND BONDS ROSE FOR THE SECOND CONSECUTIVE DAY BUOYED BY SIGNS OF A STILL WEAK ECONOMY AND PERSISTENT DEMAND FROM A VARIETY OF BUYERS YIELDS ON SOME NOTES FELL TO THE LOWEST LEVELS SINCE 1971 THE BELLWETHER 30YEAR TREASURY BOND FINISHED MORE THAN 3/8 POINT HIGHER OR MORE THAN 375 FOR A BOND WITH A 1000 FACE VALUE THE YIELD WHICH MOVES IN OPPOSITE DIRECTION FROM THE PRICE DECLINED TO 616 THE LOWEST SINCE THE TREASURY BEGAN REGULAR 30YEAR AUCTIONS IN 1977 TENYEAR TREASURY NOTE PRICES ALSO ROSE MORE THAN 3/8 POINT YIELDS DECLINED TO 548 THE LOWEST YIELD ON THE 10YEAR NOTE SINCE MARCH 1971 TRADERS SAY MANY SOCALLED TECHNICAL SOURCES OF DEMAND CONTINUE TO UNDERPIN THE TREASURY MARKET ON THE SUPPLY SIDE LAWRENCE LEUZZI MANAGING DIRECTOR AT SG WARBURG & CO NOTED THAT YESTERDAY'S AUCTION OF FIVEYEAR NOTES ENDS THE SALE OF NEW TREASURY DEBT FOR AT LEAST A MONTH ON THE DEMAND SIDE FOREIGN CENTRAL BANKS INVESTMENT FUNDS AND US BANKS CONTINUE TO BUY HE SAYS ALSO THE FEDERAL RESERVE IS EXPECTED TO BUY UP SOME TREASURY ISSUES NEXT WEEK TO INJECT CASH INTO THE BANKING SYSTEM AHEAD OF THE LABOR DAY WEEKEND ALL OF THAT ADDS UP TO A VERY FIRM MARKET MR LEUZZI SAID ALSO ECONOMIC DATA CONTINUE TO SHOW A TEPID RECOVERY WITH NO SIGN OF RISING INFLATION BONDHOLDERS FEAR INFLATION BECAUSE IT HURTS THE RETURNS OF FIXEDINCOME INVESTMENTS YESTERDAY A GOVERNMENT REPORT SAID ORDERS FOR DURABLE GOODS FROM THE NATION'S MANUFACTURERS FELL 38 IN JULY A DROP OF MORE THAN TWICE MOST FORECASTS YESTERDAY THE GOVERNMENT SOLD 11 BILLION OF NEW FIVEYEAR NOTES AT A YIELD OF 487 THE LOWEST SINCE THE TREASURY BEGAN REGULARLY SCHEDULED FIVEYEAR NOTE AUCTIONS IN JANUARY 1977 THE AWARDED YIELD AT THE PREVIOUS FIVEYEAR NOTE AUCTION ON JULY 28 WAS 525 THE NEW NOTE'S PRICES FIRMED BY THE END OF THE DAY TAKING YIELDS DOWN TO 484 BUT BOND INVESTORS ARE ACCEPTING AN UNUSUALLY LOW INTERESTRATE RETURN FOR THE RISK OF HIGHER FUTURE INFLATION AND VOLATILITY SOME ANALYSTS THINK THIS IS WHAT YOU CALL A REGIME CHANGE SAID ROBERT BRUSCA CHIEF ECONOMIST AT NIKKO SECURITIES INTEREST RATES ARE COMING BACK DOWN TO THEIR 30YEAR AVERAGE DURING THE 1980S LONGTERM TREASURYS TRADED AT THE HIGH END OF THE AVERAGE TO COMPENSATE NOT ONLY FOR INFLATION RISKS BUT ALSO FOR LOTS OF VOLATILITY CREATED BY SWINGING OIL PRICES A PLUNGING DOLLAR RISING FEDERAL DEFICITS AND TRADE IMBALANCES VOLATILITY FROM AN INFLATION SURPRISE RELATED TO COMMODITY OR CURRENCY SWINGS DOESN'T APPEAR TO BE A BIG WORRY FOR BOND BUYERS INDEED THE BOND RALLY OF RECENT DAYS IS MORE OF A CELEBRATION OF PRESIDENT CLINTON'S BUDGET ACCORD BUT DISAPPOINTMENT OVER DEFICIT REDUCTION MAY BE JUST THE VOLATILITY SURPRISE THAT'S WAITING FOR BONDHOLDERS DEFICTREDUCTION ACCORDS OF THE PAST MR BRUSCA NOTED HAVE BEEN UNSUCCESSFUL AND HE SUGGESTS THAT THE MOST RECENT DEFICITREDUCTION LEGISLATION IS REALLY A DONOTHING BILL HE IS SKEPTICAL ABOUT THE FEDERAL DEFICIT FALLING SO HE SUGGESTS INVESTORS SELL BONDS AND TAKE PROFITS HERE ARE THE RESULTS OF THE TREASURY'S FIVEYEAR AUCTION ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED AUG 31 AND MATURE AUG 31 1998 HIGHYIELD OR JUNK BOND PRICES ENDED UNCHANGED TO ABOUT 1/2 POINT LOWER INVESTORS REMAIN SKITTISH OVER THE RISING SUPPLY AND FALLING QUALITY OF MANY JUNK ISSUES BROUGHT TO MARKET RECENTLY THE SAME THING THAT'S DRIVING THE LONG BOND YIELD DOWN IS MAKING JUNK BOND BUYERS A LITTLE NERVOUS SAID KENNETH B ROBINSON SENIOR VICE PRESIDENT AT COWEN & CO IF WE ARE GOING TO HAVE A SLOWDOWN IN THE ECONOMY IT IS NOT GOOD FOR HIGHLY LEVERAGED COMPANIES MANY INVESTORS ARE CONCERNED ABOUT SOME OF THE RECENT JUNK DEALS WHERE COUPONS HAD TO BE RAISED TO ATTRACT BUYERS THIS MARKET IS GETTING WAY OVERDONE SAID CURTISS O BARROWS MANAGER OF THE PHOENIX HIGH YIELD FUND THE VULNERABILITY IS IN THE MORE RECENT DEALS I AM ALMOST ON STRIKE IN THE NEWISSUE MARKET BUT DEALS CONTINUE TO ROLL OUT WITH COMPANIES AND INVESTMENT BANKERS TINKERING WITH TERMS TO SELL THE DEBT LATE TUESDAY CORT FURNITURE RENTAL CORP A UNIT OF NEW CORT HOLDINGS CORP DRAMATICALLY REVISED THE TERMS OF AN OFFERING TO LURE INVESTORS CITICORP'S CITICORP VENTURE CAPITAL LTD UNIT OWNS 87 OF THE EQUITY IN NEW CORT HOLDINGS CORT FURNITURE HAD INTENDED TO PRICE 925 MILLION OF SENIOR NOTES WITH A COUPON AROUND 1125 INSTEAD IT ENDED UP ISSUING 100 MILLION OF 12 SENIOR NOTES WITH WARRANTS FOR A TOTAL OF 10 OF THE HOLDING COMPANY'S SHARES BETHLEHEM STEEL CORP ISSUED 105 MILLION OF DEBT AFTER DECIDING AGAINST SETTING UP AND ISSUING THROUGH AN OFFBALANCESHEET TRUST VEHICLE ELSEWHERE IN THE CORPORATE BOND MARKET WESTINGHOUSE ELECTRIC CORP HIT THE MARKET WITH THE LARGEST OFFERING YESTERDAY PRICING 600 MILLION OF DEBT MR BARROWS OF THE PHOENIX HIGH YIELD FUND SAID HE IS INCREASING HIS EXPOSURE TO SOME FOREIGN HIGHYIELD BONDS WHERE THE CREDIT QUALITY MAY BE IMPROVING I AM LOBBYING FOR MORE EXPOSURE TO EASTERN EUROPE AND LATIN AMERICA HE SAYS YESTERDAY THE HIGHYIELDING EUROBOND AND SOCALLED BRADY BOND ISSUES FROM THE REPUBLIC OF ARGENTINA RALLIED AS MUCH AS 750 FOR EACH 1000 FACE AMOUNT IN RESPONSE TO A NEW RATING ON THE NATION FROM STANDARD & POOR'S CORP THE AGENCY ASSIGNED A FIRSTTIME DOUBLEBMINUS RATING TO THE US DOLLARDENOMINATED EUROBONDS AFFECTING SOME 87 BILLION IN DEBT S&P SAID THE RATING OUTLOOK IS STABLE S&P DIDN'T RATE ARGENTINA'S BRADY BOND DEBT BUT ONLY EUROBOND AND SOCALLED BONEX ISSUES OR FOREIGN OBLIGATIONS OF ARGENTINA BRADY BONDS ARE DEBTRESTRUCTURING ISSUES CREATED UNDER A PLAN DEVELOPED BY FORMER TREASURY SECRETARY NICHOLAS BRADY S&P'S RATING ON THESE ISSUES HOWEVER WAS A NOTCH HIGHER THAN AN EXISTING RATING BY MOODY'S INVESTORS SERVICE INC AND THAT ENCOURAGED BUYERS OF BRADY BONDS PRICES OF MUNICIPAL BONDS ENDED GENERALLY UNCHANGED TO 1/4 POINT HIGHER THE GAINERS INCLUDED METROPOLITAN SEATTLE'S 550 SEWER REVENUE REFUNDING BONDS OF 2033 WHICH FINISHED 1/8 FIRMER AT 97 7/8 TO YIELD 561 WHILE MUNIS ARE BENEFITING FROM CONTINUING TAXRELATED PURCHASES THEY TEND TO BECOME VULNERABLE WHENEVER NEW SECURITIES COME TO THE MARKET FASTER THAN THEY CAN BE FULLY ABSORBED THAT WAS THE CASE TUESDAY WHEN MORE THAN 2 BILLION OF NEW MUNIS WERE OFFERED YESTERDAY HOWEVER THE PACE OF ISSUANCE SLOWED A LITTLE AND UNDERWRITERS DIDN'T SEEM TO HAVE ANY TROUBLE SELLING THE DAY'S TWO LARGEST OFFERINGS THE NEW YORK METROPOLITAN TRANSPORTATION AUTHORITY'S 3887 MILLION OF SERIES 7 SERVICECONTRACT BONDS AND MONTANA HIGHER EDUCATION STUDENT ASSISTANCE CORP'S 200 MILLION OF SERIES 1993 A B AND C STUDENTLOAN REVENUE BONDS BOTH ISSUES WERE ALL SOLD AT THE SESSION'S END A BEAR STEARNS & CO GROUP INITIALLY GAVE THE MTA BONDS YIELDS THAT RANGED FROM 340 IN 1995 TO 590 FOR ZEROCOUPON BONDS DUE IN 2012 AND 2013 HOWEVER DEMAND WAS HEARTY ENOUGH FOR SOME YIELDS TO BE LOWERED 002 TO 005 PERCENTAGE POINT FOLLOWING A REPRICING YIELDS RANGE FROM 340 IN 1995 TO 585 FOR ZEROCOUPON BONDS DUE IN 20122014 ZEROCOUPON BONDS DON'T PAY INTEREST BUT ARE SOLD AT A DISCOUNT TO FACE VALUE AND ARE REPAID AT PAR PRICES OF MORTGAGE SECURITIES ENDED MIXED AGAIN WITH 65 SECURITIES FINISHING FIRM WHILE SOME HIGHERCOUPON ISSUES DECLINED TRADE WAS DOMINATED BY SOCALLED DOWNINCOUPON MOVES AS IT HAS BEEN FOR MOST OF THE PAST COUPLE OF WEEKS IN THESE TRADES INVESTORS MOVE OUT OF HIGHERCOUPON ISSUES TO BUY LOWERCOUPON ISSUES THE BIAS AGAINST HIGHER COUPONS STEMS FROM A BELIEF THAT THEY ARE THE MOST SUSCEPTIBLE TO BEING PREPAID AS HOMEOWNERS REFINANCE THE LOANS THAT WERE USED TO CREATE THE SECURITIES PREPAYMENTS HURT PREMIUMPRICED HIGHCOUPON MORTGAGE SECURITIES BECAUSE INVESTORS TYPICALLY PAY MUCH MORE THAN THE PAR PRICE THAT IS RETURNED WHEN THE SECURITIES ARE PREPAID IN SECONDARY TRADING CURRENT COUPONS FOR SEPTEMBER DELIVERY FINISHED 3/32 HIGHER GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 ISSUES FINISHED AT 101 7/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 65 ISSUES ENDED AT 101 12/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 ISSUES CLOSED AT 101 6/32 THE CONTINUED DECLINE IN INTEREST RATES HAS HAMPERED THE BROAD MORTGAGE MARKET FOR WEEKS BUT THERE WERE SOME SIGNS YESTERDAY THAT OPPORTUNITIES MAY POP OUT AT THE EDGES OF A FRAYED MARKET FOR EXAMPLE NOMURA SECURITIES INTERNATIONAL INC LED A GROUP OF UNDERWRITERS IN A 1 BILLION OFFERING OF MODIFIABLE AND COMBINABLE SECURITIES THAT WERE CREATED BY STRIPPING 30YEAR 75 MORTGAGE SECURITIES FROM FREDDIE MAC KEVIN MCDERMOTT HEAD OF AGENCY MORTGAGE SECURITIES TRADING AT NOMURA SAID THE FIRM HAD FOUND INVESTORS WHO WERE INTERESTED IN THE MAC'S INTERESTONLY STRIPS OR IOS 9308260025 930826 POOR MAN'S CRUISE AIRLINERS CAN EXPLOIT US GUIDANCE SYSTEM BUT SO CAN ENEMIES GLOBAL POSITIONING SATELLITES COULD BE USED TO DIRECT CHEAP ACCURATE MISSILES DEFENSE AIDE IT'S A QUANDARY BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AT THE PENTAGON THEY CALL IT THE POOR MAN'S CRUISE MISSILE IT IS A LOWFLYING GUIDED MISSILE OR ROBOTDRIVEN AIRCRAFT THAT IS RELATIVELY CHEAP TO PRODUCE BUT CAPABLE OF HITTING TARGETS WITH A PRECISION THE US ONCE MONOPOLIZED IRAQ IRAN AND NORTH KOREA ARE AMONG A DOZEN COUNTRIES DEVELOPING THESE MISSILES THE SPREAD OF SUCH WEAPONS WOULD CUT THE US TECHNOLOGICAL EDGE AND INCREASE THE DANGER AMERICAN FORCES FACE IN REGIONAL CONFLICTS BUT THE THREAT OF THESE NEW MISSILES DOESN'T STEM FROM A BREAKTHROUGH IN SOME THIRD WORLD CAPITAL THE SOPHISTICATED SATELLITE SYSTEM TO GUIDE THE MISSILES IS BEING PUT INTO SPACE BY THE PENTAGON AND THE ABILITY TO ACCESS THE SYSTEM INEXPENSIVELY WAS DEVELOPED BY THE FEDERAL AVIATION ADMINISTRATION FOR THE COMMERCIALAIRLINE INDUSTRY BY TAPPING INTO THE DEFENSE DEPARTMENT'S 10 BILLION GLOBAL POSITIONING SYSTEM RENEGADE STATES CONCEIVABLY COULD GUIDE THEIR MISSILES TO PRECISE TARGETS INCLUDING SOME IN THE US BY FIRING LOWFLYING MISSILES FROM SUBMARINES OR MERCHANT VESSELS THE MISSILES COULD CARRY CHEMICAL OR BIOLOGICAL WEAPONS OR EVEN NUCLEAR WARHEADS THE GPS USING SIGNALS FROM 24 ORBITING SATELLITES TO PINPOINT LOCATIONS ON EARTH IS THE MOST ACCURATE NAVIGATION AND TARGETING SYSTEM EVER DEVISED AND COULD GO ON LINE LATE THIS SUMMER THE FACT THAT OTHERS ARE GEARING UP TO USE IT UNDERSCORES HOW DIFFICULT IT IS TO PROTECT MILITARY TECHNOLOGY PARTICULARLY WHEN IT ALSO HAS COMMERCIAL USES MILITARY OFFICIALS ALREADY ARE WORRIED ABOUT THE POTENTIAL DANGER OF GPSGUIDED CRUISE MISSILES WE REALLY HAVEN'T FACED A THREAT LIKE THAT IN THE CONTINENTAL US SAYS REAR ADM BRUCE B BREMNER DIRECTOR OF OPERATIONS FOR THE US SPACE COMMAND IN COLORADO SPRINGS COLO THERE IS THE POTENTIAL THAT IT COULD BE USED FOR TERRORISTS OR FOR ENEMY USE AND IT COULD DO A LOT OF DAMAGE NO ONE HAS A PLAN FOR SOLVING THE PROBLEM THERE ARE FEW EFFECTIVE DEFENSES AGAINST CRUISE MISSILES WHICH TRAVEL AT LOW ALTITUDES AND OFTEN ARE MISTAKEN FOR BIRDS ON RADAR SCREENS MOREOVER THE WORLD'S AIRLINES AND OTHER COMMERCIAL USERS WILL SOON BE HEAVILY DEPENDENT ON GPS GUIDANCE THE GPS WAS DESIGNED SO THAT A PRESIDENT COULD SWITCH OFF THE SYSTEM IN A MILITARY CRISIS BUT ADM BREMNER DOUBTS THAT SAFETY COULD BE PRESERVED IF FOR EXAMPLE THE SYSTEM WERE SWITCHED OFF AS GPSGUIDED AIRLINERS TRY TO LAND IN BAD WEATHER THE AIRLINERS' ENTHUSIASM FOR THE MILITARY NAVIGATION SYSTEM HAS TAKEN THE PENTAGON BY SURPRISE IT THREATENS TO START YET ANOTHER BATTLE OVER SALES OF SOCALLED DUAL USE TECHNOLOGY WHICH CAN BE EMPLOYED FOR MILITARY OR CIVILIAN PURPOSES THIS IS AN INHERENT QUANDARY ADMITS JULES G MCNEFF THE PENTAGON'S TOP EXPERT ON THE GPS SYSTEM OF ORBITING NAVSTAR SATELLITES ORIGINALLY THE NAVIGATION SYSTEM USED A CODED SIGNAL TO KEEP PRECISION GUIDANCE OUT OF THE HANDS OF A POTENTIAL ENEMY BUT DURING THE MID1980S AS THE MILITARY'S NAVIGATION SYSTEM TOOK SHAPE IN SPACE TWO OTHER FEDERAL AGENCIES THE COAST GUARD AND THE FAA BEGAN MULTIMILLIONDOLLAR PROGRAMS TO EXPAND THE BENEFITS OF GPS FOR COMMERCIAL USERS THROUGH THE USE OF COMPUTERS AND GROUNDBASED RADIO BEACONS THEY INVENTED LOCAL DIFFERENTIAL GPS WHICH ESSENTIALLY BREAKS THE MILITARY'S CODE NOW GPS IS ACCESSIBLE TO ANYONE WHO CAN ACQUIRE THE NECESSARY RECEIVER EQUIPMENT GPS WAS USED BY THE US DURING THE PERSIAN GULF WAR WHEN B52 BOMBERS F16 FIGHTERS AND APACHE HELICOPTERS SAVAGED IRAQI FORCES USING ULTRAPRECISE GUIDANCE THE NAVY'S STANDOFF LAND ATTACK MISSILE GUIDED IN PART BY GPS AMAZED TELEVISION VIEWERS BY FLYING IN THROUGH DOORS AND OTHER OPENINGS TO DEMOLISH HIGHLY FORTIFIED TARGETS IN COMPARISON IRAQ'S SCUD MISSILES HAD PRIMITIVE GUIDANCE SYSTEMS USING COORDINATES FROM INACCURATE MAPS AND OFTEN MISSED THEIR ASSIGNED TARGETS BY SEVERAL MILES THE SPRAWLING US AMMUNITION DUMPS BASES AND PETROLEUM STORAGE SITES IN SAUDI ARABIA WERE VIRTUALLY IMMUNE I DON'T EXPECT THAT TO BE TRUE AGAIN ANYTIME IN THE FUTURE SAYS MR MCNEFF INDEED THE US TOMAHAWK MISSILE ATTACK ON BAGHDAD IN JUNE MAY BE ONE OF THE LAST RAIDS ON AN ENEMY WHO DOESN'T SHOOT BACK ENEMIES EQUIPPED WITH PRECISE MISSILES WILL HAVE A HIGH LIKELIHOOD OF INFLICTING PAINFUL DAMAGE IN A CONFLICT PREDICTS A US OFFICIAL IN ADDITION TO IRAQ IRAN AND NORTH KOREA GPSGUIDED CRUISE MISSILES ARE IN THE PIPELINE IN INDIA PAKISTAN INDONESIA EGYPT ISRAEL TAIWAN AND SEVERAL OTHER COUNTRIES US OFFICIALS SAY THE EQUIPMENT IS COMMERCIALLY AVAILABLE AND OFTEN LAUNDERED THROUGH EUROPE IRAN BUYS ITS RECEIVERS THROUGH FRONT COMPANIES IN ENGLAND SAYS ONE OF THE OFFICIALS CHINA AND RUSSIA ALSO ARE BELIEVED TO BE WORKING JOINTLY ON SUCH A MISSILE WHICH PROBABLY WILL BE OFFERED FOR EXPORT MANY US MILITARY OFFICIALS ARE DELUDING THEMSELVES ABOUT THE DANGERS OF SPREADING GPS TECHNOLOGY ACCORDING TO HENRY D SOKOLSKI WHO FORMERLY OVERSAW NONPROLIFERATION POLICY IN THE PENTAGON FOR THE BUSH ADMINISTRATION THE WHOLE FIELD IS ONE THAT IS STREWN WITH SELFCOMFORTING MISCONCEPTIONS HE SAYS ONE IS THAT THE SATELLITE SYSTEM COULD BE TURNED OFF IN A CRISIS HE SAYS ANOTHER IS THAT AN ENEMY WON'T BE ABLE TO ACQUIRE A SIGNAL THAT IS PRECISE ENOUGH FOR TARGETING NOT TRUE SAYS MR SOKOLSKI A NUMBER OF NATIONS ARE COMBINING SATELLITE IMAGERY WHICH CAN BE PURCHASED FROM THE US FRANCE AND RUSSIA WITH SMALL HIGHSPEED COMPUTERS AND GPS RECEIVERS THE RESULT IS A CONSTANTLY UPDATED DIGITAL MAP IN THE COMPUTER'S BRAIN THAT PROVIDES ALMOST PINPOINT ACCURACY AT A RELATIVELY MODEST COST I THINK YOU'LL FIND THIS IN SOME VERY DISTURBING PLACES HE ADDS ONE POSSIBLE DEFENSE AGAINST THE CRUISE MISSILE WOULD BE TO USE STATICCREATING RADIO JAMMERS TO BLOCK GPS SIGNALS IN A GIVEN AREA BUT THESE JAMMERS WOULD ALSO DEPRIVE US FORCES OF THEIR MAIN NAVIGATION GUIDE AND THROW COMMERCIAL USERS INTO CONFUSION YOU HAVE TO DECIDE WHETHER GPS IS MORE VALUABLE TO US OR TO THEM THESE ARE THE KINDS OF DECISIONS YOU WILL HAVE TO MAKE EXPLAINS BERNARD SCHWEITZER A RAND CORP PHYSICIST WHO HAS BEEN WORKING ON THE ISSUE FOR THE AIR FORCE SOME BLAME THE AIRLINE INDUSTRY FOR PRESSURING THE PENTAGON TO RELAX ITS CONTROLS OVER GPS AND ALLOW AIRLINES TO USE A MORE PRECISE SIGNAL THEY'RE LIVING IN THEIR OWN WORLD AND THEY DON'T SEE THE NATIONALSECURITY ISSUE SAYS KATHLEEN BAILEY WHO HELPED DIRECT NONPROLIFERATION POLICY AT THE STATE DEPARTMENT DURING THE BUSH ADMINISTRATION OFFICIALS AT THE FAA AREN'T APOLOGIZING I THINK YOU'RE TALKING BILLIONS OF DOLLARS OF SAVINGS TO AIRCARRIER INDUSTRIES BEFORE WE'RE ALL DONE THERE'S SUCH A REVOLUTION TAKING PLACE IN TECHNOLOGY SAYS JOSEPH DEL BALZO ACTING FAA ADMINISTRATOR GPS SATELLITES SEND TWO NAVIGATION SIGNALS ONE WHICH IS MADE AVAILABLE TO COMMERCIAL USERS HAS A BUILTIN ERROR IT CAN BRING A USER WITHIN 328 FEET OF A KNOWN LOCATION THE SECOND SIGNAL WHICH CAN ONLY BE RECEIVED BY SPECIAL MILITARY RECEIVERS GETS THE UNADULTERATED SIGNAL IT CAN TARGET ALMOST ANY POINT ON EARTH WITHIN ABOUT 38 FEET BUT THROUGH ITS RESEARCH MR DEL BALZO'S AGENCY MANAGED TO GET WITHIN ABOUT 10 FEET OF A KNOWN LOCATION A BETTER SIGNAL EVEN THAN THE MILITARY GETS BY USING LANDBASED STATIONS TO ENHANCE THE COMMERCIAL SIGNAL FROM THE GPS SATELLITES BECAUSE THE STATIONS OPERATE FROM A KNOWN FIXED LOCATION THEY CAN COMPARE THEIR LOCATIONS WITH THE SIGNALS FROM SPACE THEN THEY USE COMPUTERS TO CALCULATE THE BUILTIN ERROR FROM THE GPS SIGNALS AND SUBTRACT IT THE CORRECTED SIGNALS ARE THEN BROADCAST TO PLANES AND OTHER GPS USERS OPERATING WITHIN A FEW HUNDRED MILES WITHIN A FEW MONTHS ACCORDING TO MR DEL BALZO THE DIFFERENTIAL GPS WILL ALLOW AIRLINE PILOTS TO MAKE PRECISION LANDINGS IN BAD WEATHER WITHOUT USING OTHER MORE EXPENSIVE NAVIGATION AIDS IT WILL OPEN SOME 5000 RUNWAYS TO ALLWEATHER OPERATIONS WITHOUT A LOT OF GROUNDBASED APPARATUS SATELLITE TECHNOLOGY WITH GPS IS SO ATTRACTIVE WE CAN'T AFFORD AS A NATION TO PASS IT BY HE SAYS AS FOR THE COAST GUARD IT IS BUILDING A CHAIN OF RADIO NAVIGATION BEACONS ALONG THE EAST COAST THAT WILL SEND THE CORRECTED GPS SIGNAL OUT TO SHIPS WITHIN 150 MILES IT WILL ALLOW THEM TO LOCATE THEIR POSITIONS WITHIN ABOUT 16 FEET A COAST GUARD SPOKESMAN SAID THE SYSTEM WILL HELP THE AGENCY SAVE LIVES WE HAVE TAKEN THE SEARCH OUT OF SEARCH AND RESCUE HE SAYS COMMERCIAL INTERESTS HAVE EVEN MORE IN MIND THE INTERNATIONAL AIR TRANSPORT ASSOCIATION WHICH REPRESENTS 95 OF THE WORLD'S AIRLINES IS PUSHING FOR CIVILIAN CONTROL OF SATELLITE NAVIGATION AND A TECHNOLOGY CALLED WIDE AREA DIFFERENTIAL WHICH WOULD USE A SEPARATE COMMUNICATIONS SATELLITE TO CORRECT THE GPS SIGNAL AND BROADCAST IT OVER AN ENTIRE CONTINENT IT WOULD ALLOW COMMERCIAL AND OTHER USERS TO LOCATE ANY POINT WITHIN ABOUT 10 FEET WE'RE SAYING GOD IT'S THERE AND YOU'VE GOT TO USE IT' SAYS DAVID FISHER DIRECTOR OF AVIONICS FOR THE ASSOCIATION HE ADMITS THE MILITARY'S CONCERNS CREATE A DILEMMA AND SAYS HE ISN'T SURE HOW THEY CAN BE RESOLVED WE DON'T TALK ABOUT CRUISE MISSILES IN OUR FORUM WE TEND TO TALK ABOUT 747S AND THAT SORT OF THING HE SAYS I DON'T SPEND MY TIME THINKING ABOUT THOSE ISSUES SAYS RUDY KALAFUS WHO HELPED PROMOTE COMMERCIAL USES FOR GPS AS TRANSPORTATION DEPARTMENT RESEARCHER AND NOW IS MARKETING MANAGER AT TRIMBLE NAVIGATION INC A SUNNYVALE CALIF COMPANY THAT IS ONE OF THE MAJOR MANUFACTURERS OF COMMERCIAL GPS EQUIPMENT WE SEE THE ADVANTAGES IN THE COMMERCIAL WORLD WHAT WE CONCENTRATE ON ARE A LOT OF THE PRODUCTIVITY AND ECONOMIC BENEFITS OF GPS CURRENTLY TASK FORCES FROM THE TRANSPORTATION DEPARTMENT AND THE PENTAGON ARE CONFERRING OVER THE FUTURE USES AND CONTROL OF GPS THE CLINTON ADMINISTRATION WHICH IS ENGAGED IN AN OVERALL STUDY OF PROLIFERATION PROBLEMS HAS YET TO WEIGH IN ON THE ISSUE MEANWHILE SOME VERSIONS OF THE POOR MAN'S CRUISE MISSILE ARE ALREADY BEING HAWKED ON THE WORLD'S ARMS MARKET FOR EXAMPLE ROKAR INTERNATIONAL LTD AN OBSCURE ISRAELIBASED UNIT OF TRACOR AEROSPACE INC OF HOUSTON HAS OFFERED TO SELL THE PENTAGON SOMETHING IT CALLS GPS SKY JESS NEELY A TRACOR VICE PRESIDENT SAYS THE TECHNOLOGY IS OWNED BY A FOREIGN GOVERNMENT WHICH HE REFUSES TO NAME HE WILL SAY THOUGH THAT IT IS A GUIDANCE SYSTEM WITH VERY FAST COMPUTERS THAT USES COMMERCIAL GPS SIGNALS TO LOCATE A TARGET WITHIN ABOUT 100 FEET ALL WE CAN SAY HE SAYS IS THAT THE GUIDANCE PACKAGE IS BUILT FOR USE ON MISSILES 9308260024 930826 BUSINESS BRIEF CANADIAN PACIFIC LTD CANADIAN AGENCY APPROVES MOVE TO ABANDON RAIL LINES CANADA'S NATIONAL TRANSPORTATION AGENCY APPROVED AN APPLICATION BY CANADIAN PACIFIC LTD TO ABANDON MOST OF ITS UNPROFITABLE RAIL OPERATIONS EAST OF QUEBEC THE ABANDONMENT OF THE RAIL LINES WILL TAKE PLACE IN ONE YEAR TO GIVE VIA RAIL CANADA INC A GOVERNMENTOWNED PASSENGER RAIL COMPANY TIME TO STUDY ALTERNATIVES FOR THE SERVICE IT RUNS ON PART OF THE LINES A SPOKESMAN FOR CANADIAN PACIFIC WELCOMED THE RULING BUT NOTED THAT THE COMPANY STILL NEEDS PERMISSION FROM THE US INTERSTATE COMMERCE COMMISSION TO ABANDON THE PORTION OF THE LINE THAT RUNS ACROSS MAINE BETWEEN QUEBEC AND NEW BRUNSWICK PUBLIC HEARINGS ON THAT ISSUE ARE SCHEDULED TO BEGIN OCT 12 IN BANGOR MAINE HE SAID CANADIAN PACIFIC APPLIED FOR PERMISSION TO ABANDON THE LINES IN NOVEMBER CITING HEAVY LOSSES ON THE OPERATIONS IN RECENT YEARS 9308260023 930826 BUSINESS BRIEFS INTERGRAPH CORP A MAKER OF ADVANCED ENGINEERING SOFTWARE AND WORKSTATIONS WAS SELECTED BY THE HONG KONG WORKS DEPARTMENT TO PROVIDE COMPUTERAIDED DESIGN SYSTEMS VALUED AT AN ESTIMATED 10 MILLION THE TECHNOLOGY WILL BE USED FOR SUCH INFRASTRUCTURE PROJECTS AS ROADS SCHOOLS HOSPITALS AND SEWAGE SYSTEMS JACOBS ENGINEERING GROUP INC WAS CHOSEN BY LAXT CORPTO DESIGN AND PROVIDE CONSTRUCTION SUPPORT FOR A DRY BULK TERMINAL IN THE PORT OF LOS ANGELES THE CONTRACT HAS YET TO BE NEGOTIATED JACOBS SAID THE ESTIMATED COST OF CONSTRUCTION IS 100 MILLION MORRISON KNUDSEN CORP HAS BEEN AWARDED A 9 MILLION CONTRACT BY THE NORTH SAN DIEGO COUNTY TRANSIT DEVELOPMENT BOARD TO SUPPLY FIVE LOCOMOTIVES FOR A COMMUTER PASSENGER LINE FROM OCEANSIDE CALIF TO SAN DIEGO NEW PLAN REALTY TRUST SIGNED CONTRACTS TO ACQUIRE A SHOPPING CENTER IN MURFREESBORO TENN AND A GARDEN APARTMENT COMPLEX IN LOUISVILLE KY FOR A TOTAL OF 122 MILLION 9308260022 930826 BUSINESS BRIEF INTERGRAPH CORP SOFTWARE COMPANY ADOPTS SHAREHOLDERS' RIGHTS PLAN INTERGRAPH CORP OF HUNTSVILLE ALA SAID ITS BOARD ADOPTED A SHAREHOLDER RIGHTS PLAN BUT ADDED THAT IT WASN'T AWARE OF ANY TAKEOVER ATTEMPTS THE PLAN CALLS FOR SHAREHOLDERS TO RECEIVE THE RIGHT TO PURCHASE ONE COMMON SHARE OF INTERGRAPH AT A 50 DISCOUNT FOR EACH SHARE HELD THE RIGHTS WHICH ARE EXERCISABLE IF A PERSON OR GROUP ACQUIRES 15 OR MORE OF THE COMPANY'S STOCK WILL BE DISTRIBUTED AS A DIVIDEND ON SEPT 7 AND WILL EXPIRE IN 10 YEARS SHAREHOLDER RIGHTS PLANS OR POISON PILLS WERE WIDELY USED DURING THE 1980S TO MAKE HOSTILE BIDS PROHIBITIVELY EXPENSIVE THE BOARD BELIEVES THE COMPANY'S STOCK PRICE DOESN'T REFLECT OUR VALUE RIGHT NOW AND THEY FELT IT WAS TIME TO PUT THE BOARD ON A LEVEL PLAYING FIELD WITH A POTENTIAL ACQUIRER A COMPANY SPOKESMAN SAID INTERGRAPH IS A MAKER OF ADVANCED ENGINEERING SOFTWARE AND WORKSTATIONS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY INTERGRAPH CLOSED AT 10875 A SHARE UP 125 CENTS THE COMPANY HAS ABOUT 45 MILLION SHARES OUTSTANDING GIVING IT AN ESTIMATED MARKET VALUE OF 489 MILLION 9308260021 930826 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION INTEGRATED DEVICE TECHNOLOGY INC AN OFFERING OF THREE MILLION COMMON SHARES VIA MONTGOMERY SECURITIES AND LEHMAN BROTHERS INC MICRO COMPONENT TECHNOLOGY INC AN INITIAL OFFERING OF 2250000 COMMON SHARES VIA TUCKER ANTHONY INC AND PIPER JAFFRAY INC REPUBLIC OF PORTUGAL AN OFFERING OF 1 BILLION IN BONDS SUMMIT CASINOS INTERNATIONAL INC AN INITIAL OFFERING OF 4250000 SHARES WERNER ENTERPRISES INC AN OFFERING OF THREE MILLION COMMON SHARES VIA ALEX BROWN & SONS INC AND MORGAN STANLEY & CO 9308260020 930826 HOLY MACKEREL IF CHURCH MAN HATES A CHOIR HE SAYS SO A PREACHER'S SAUCY CRITIQUES OF SERVICES WIN LISTENERS AND DEVOUT CRITICS AS WELL BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH MOST PEOPLE GO TO CHURCH TO PRAY THE REV GEORGE EXOO GOES TO PRY RECENTLY HE DROPPED IN ON THE CALVARY EPISCOPAL CHURCH HERE HE LIKED IT SO MUCH THAT HE CALLED CALVARY A ROLLSROYCE CHURCH OF GLOBAL EXCELLENCE BUT ANOTHER VISIT TO A LOCAL CHRISTIAN SCIENCE CHURCH LEFT HIM COLD HE CRITICIZED THE SERVICE FOR ITS MUDDY UNMELODIC MUSIC AND SLAMMED THE CHURCH AS A FUNERAL PARLOR OF AMERICAN SPIRITUALITY MR EXOO'S REMARKS STIRRED UP A HOLY FUROR THE CHURCH HURLED BACK A THUNDERBOLT CALLING HIS COMMENTS UNINFORMED INAPPROPRIATE MEDDLESOME SUCH ARE THE HAZARDS OF BEING CHURCH MAN THE NAME UNDER WHICH MR EXOO PRACTICES HIS SELFAPPOINTED POST AS CRITIC TO THIS CITY'S CHURCHES SPORTING PEN NOTEBOOK AND TRADEMARK RUMPLED SPORTS COAT THE ORDAINED UNITARIAN MINISTER ANONYMOUSLY INVADES AT LEAST ONE HOUSE OF WORSHIP A WEEKEND HE TAKES ON ALL FAITHS CHRISTIAN HINDU JEWISH AND TAKES INTO ACCOUNT EVERYTHING FROM THE SERMON AND MUSIC TO CHURCH AMBIENCE HE FASHIONS HIS IMPRESSIONS INTO THREEMINUTE REVIEWS FOR THE SUNDAY ARTS MAGAZINE PROGRAM ON WQEDFM A PITTSBURGH PUBLICRADIO STATION SISKEL OR EBERT HE'S NOT BUT THE MUSTACHIOED 50YEAROLD MR EXOO SEEMS TO HAVE FOUND A NICHE WQED HAS BROADCAST SOME 50 REVIEWS SINCE MARCH 1992 PAYING HIM 40 A POP HE GETS FAN MAIL AND AN OCCASIONAL NASTY NOTE FROM HIS ESTIMATED 8000 LISTENERS AND SOME MEDIACONSCIOUS CLERGY HAVE BEGUN TO SOLICIT REVIEWS OF THEIR CHURCHES UNDER THE THEORY THAT IN THESE DAYS OF DECLINING CHURCH ENROLLMENT EVEN A BAD REVIEW MIGHT STIR UP SOME EXCITEMENT THIS PUBLICITY COULD BE REALLY POSITIVE THE WAY CHURCHES GROW IS THROUGH WORD OF MOUTH SAYS J MARTIN BAILEY OF THE NATIONAL COUNCIL OF CHURCHES BUT NOT EVERYONE AGREES THAT CHURCHES SHOULD BE RATED LIKE MOVIES PLAYS OR RESTAURANTS A PROFESSOR AT HARVARD UNIVERSITY'S DIVINITY SCHOOL WHERE MR EXOO GOT HIS TRAINING THINKS CHURCH MAN CAN BE INTRUSIVE IF YOU COMPARE WORSHIP TO SOMETHING AS INTIMATE AS THE ACT OF LOVEMAKING THEN YOU REALLY WOULDN'T WANT A CRITIC SITTING ON THE BED TELLING YOU WHAT TO DO HE SAYS OTHERS DON'T MIND THE CONCEPT BUT ARE SKEPTICAL THAT ANYONE BUT SOLOMON HAS THE WISDOM TO FAIRLY CRITIQUE THE MANIFOLD FAITHS FOUND TODAY IT'S AN ISSUE OF STYLE SAYS THE REV BILLY MELVIN EXECUTIVE DIRECTOR OF THE NATIONAL ASSOCIATION OF EVANGELICALS A GROUP REPRESENTING 50000 CHURCHES NATIONWIDE SOME PEOPLE MIGHT LIKE DRAWNOUT LITURGY WHILE OTHERS MAY FIND IT BORING MR EXOO THINKS OF HIMSELF AS A SORT OF RALPH NADER OF THE DIVINE HELPING THE BUSY MODERN CHURCHCONSUMER CUT THROUGH RELIGIOUS HYPE AND CLUTTER I THINK I ENCOURAGE THOSE NOT IN CHURCH TO GET BACK IN WHILE GETTING THOSE ALREADY IN CHURCH TO CLEAN UP THEIR ACT HE SAYS MOST OF THIS IS DONE WITH DEVILISH AND OFTEN WHIMSICAL GOOD HUMOR VISITING THE SUBURBAN PINE CREEK PRESBYTERIAN CHURCH HE WAS HAPPY TO GLOSS OVER THE SOUR NOTES OF THE CHURCH ORGANIST AFTER SNIFFING OUT PINE CREEK'S OTHER VIRTUES THE PASTA CASSEROLE WAS ESPECIALLY GOOD THE DAY OF OUR VISIT MR EXOO SAID IN HIS REVIEW AFTER THREE HELPINGS I ASKED FOR THE RECIPE AND LEARNED IT WAS BUILT ON A FRENCH DRESSING BASE MR EXOO RECOGNIZES THAT HE WALKS AN ETHEREAL LINE BETWEEN MAKING HIS REVIEWS INTERESTING AND MAKING FUN OF HIS SUBJECTS HE SOMETIMES SENDS HIS CRITIQUES TO PASTORS IN ADVANCE OF THEIR BROADCASTS IT'S NOT LIKE A MOVIE WHERE THE CREW IS 1000 MILES AWAY WHEN THE REVIEW COMES OUT MR EXOO SAYS THESE ARE REAL PEOPLE WITH REAL FEELINGS WHOM I HAVE TO STARE IN THE FACE WQED ALSO GIVES OFFENDED PASTORS A RIGHT TO REPLY THOUGH THUS FAR ONLY THE CHRISTIAN SCIENCE CHURCH HAS TAKEN MR EXOO TO TASK ON THE AIR STILL THERE ARE THOSE WHO THINK MR EXOO SOMETIMES FORGETS HIS VOWS OF CHRISTIAN CHARITY WHEN HE CHIDED PARISHIONERS AT ST EDWARD CATHOLIC CHURCH FOR ENTERING SERVICES WITH THEIR LIPS LOCKED IN AN ARMOR OF GRUMPINESS THE CHURCH'S PASTOR DID NOT TURN THE OTHER CHEEK HE IS AN OUTOFWORK MINISTER WHO HAS CREATED A JOB FOR HIMSELF FUMES THE REV THOMAS J MCKENNA HE CALLS MR EXOO A 24KARATGOLD CON ARTIST AND THE SPIRITUAL EQUIVALENT OF CHURCH LADY THE SCREECHING SANCTIMONIOUS SATURDAY NIGHT LIVE CHARACTER THIS IS NOT EXACTLY THE CAREER MR EXOO ENVISIONED WHEN HE GRADUATED FROM HARVARD'S DIVINITY SCHOOL IN 1967 AFTER HARVARD HE SPENT 10 YEARS IN A CHARLESTON SC PARISH HE LATER ATTEMPTED TO HELP OPEN A HOSPICE FOR CLERGY WITH AIDS BUT THE PROJECT FELL APART IN 1991 MR EXOO MOVED TO PITTSBURGH WITHOUT A CONGREGATION OF HIS OWN AND WITH ONLY A MODEST INHERITANCE FROM A RELATIVE TO SUSTAIN HIM HE CAST ABOUT LOOKING FOR SOMETHING TO DO HE STRUCK UPON THE IDEA OF CHURCH CRITIC BORROWING SOME OF HIS NOTIONS FROM SYNDICATED COLUMNIST GEORGE PLAGENZ WHO RATED CHURCHES FOR TWO NOWDEFUNCT OHIO PAPERS IN THE EARLY 1980S MR PLAGENZ WHO NO LONGER REVIEWS CHURCHES SAYS HIS COLUMNS WERE MUCH GENTLER THAN MR EXOO'S BUT HE CREDITS CHURCH MAN WITH BEING A BETTER WRITER AND A MORE ACERBIC ONE WHICH MAKES GOOD READING ON THE AIR BESIDES BEING BRANDED A HOLY TERROR MR EXOO FINDS HIS CALLING PRESENTS OTHER DIFFICULTIES HE HAS DISCOVERED THE HARD WAY THAT IT IS NOT SMART FOR A CHURCH CRITIC TO IDENTIFY HIMSELF AS REVEREND ON THE GUEST LIST THE FIRST TIME HE DID SO HE WAS PROMPTLY REWARDED WITH A SEAT AT THE MINISTER'S SIDE OF COURSE I COULDN'T TAKE NOTES THAT DAY HE GRUMBLES AND IT WAS A BOOMING SERVICE ONE SUNDAY HE SHOWED UP AT THE JOHN WESLEY AFRICAN METHODIST EPISCOPAL CHURCH AS ONE OF ONLY TWO WHITE MEN IN AN OTHERWISE BLACK CONGREGATION SPOTTED QUICKLY AS A GUEST HE WAS POLITELY GIVEN A PRIME PEW IN THE SECOND ROW A VERY BAD LOCATION FOR A CHURCH CRITIC STRIVING FOR SECRECY THAT ONE HE ADMITS WAS A CHALLENGE ESPECIALLY WHEN THE REVEREND RUSHED OVER TO PERSONALLY INTRODUCE HERSELF SOMETIMES HE GETS CAUGHT REDHANDED AND THERE IS HELL TO PAY NOT LONG AGO MR EXOO WAS SITTING QUIETLY IN A REAR PEW OF THE PITTSBURGH REVIVAL CENTER SCRIBBLING NOTES AND HOPING TO AVOID THE SUSPICIOUS EYES OF A FEMALE PASTOR BUT HALFWAY THROUGH THE OPENING HYMN HE HEARD THE DREADED WORDS PUT THAT NOTEBOOK AWAY NOW I DON'T WANT ANYONE TAKING NOTES IN HERE MR EXOO FLED THE SERVICE IN HIS RED RENAULT CONVERTIBLE HIS CRITIC'S EGO WOUNDED BUT AFTER HE PANNED THE CHURCH AND CALLED THE PASTOR A SQUAWKING MAGPIE EDITORS AT WQED DECIDED HIS REVIEW WAS SOMEWHAT UNCHRISTIANLIKE AND DECLINED TO BROADCAST IT OH I KNEW ALL ALONG IT WAS TOO BAD TO RUN ADMITS MR EXOO BUT HE IS NOT WORRIED ABOUT RUNNING OUT OF MATERIAL PITTSBURGH HAS 550 CHURCHES MR EXOO'S NEWFOUND AVOCATION AND THE FLAP HE SOMETIMES CAUSES ISN'T SURPRISING TO BETTY KARL A FORMER PARISHIONER OF HIS FROM SOUTH CAROLINA SHE GIVES MR EXOO FOUR STARS AS A PREACHER BUT NOTES A TENDENCY TO REALLY EXAGGERATE TO GET A POINT ACROSS 9308260019 930826 BUSINESS BRIEF CMS ENERGY CORP UNIT FINISHES RESTRUCTURING OF EXETER ENERGY PROJECT CMS ENERGY CORP DEARBORN MICH SAID ITS CMS GENERATION CO POWER PRODUCTION UNIT COMPLETED A 110 MILLION DEBT AND EQUITY RESTRUCTURING OF ITS WASTETIRE ENERGY OPERATION IN STERLING CONN TERMS OF THE AGREEMENT WEREN'T DISCLOSED BUT MANAGEMENT CONTROL OF THE OPERATION EXETER ENERGY PROJECT IS NOW HELD BY EXETER MANAGEMENT CO A JOINT VENTURE OF CMS GENERATION AND BLACK & VEATCH A KANSAS CITY MO ENGINEERING AND CONSTRUCTION COMPANY THE EXETER FACILITY EXTRACTS USABLE ENERGY REMAINING IN WASTE TIRES TO PRODUCE ELECTRICITY ABOUT 10 MILLION WASTE TIRES ARE RECYCLED EACH YEAR BY THE FACILITY ENOUGH TO HANDLE ALL THE SCRAP TIRES DISCARDED IN CONNECTICUT AND OVER ONEHALF THE SCRAP TIRES FROM THE ENTIRE NEW ENGLAND REGION IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CMS ENERGY WAS QUOTED AT 26625 UP 375 CENTS 9308260018 930826 BUSINESS BRIEF SPX CORP SUPPLIER WILL POST CHARGE OF 185 MILLION IN 3RD PERIOD SPX CORP SAID IT WILL TAKE A THIRDQUARTER 185 MILLION CHARGE RELATED TO THE RESTRUCTURING OF ITS AUTOMOTIVE DIAGNOSTICS DIVISION THE CHARGE REFLECTS ANTICIPATED COSTS OF SUBSTANTIALLY REDUCING THE UNIT'S OPERATIONS THE COMPANY SAID THE DIVISION WAS CREATED WHEN SPX A MUSKEGON MICH AUTO PARTS SUPPLIER CONSOLIDATED NEWLY ACQUIRED ALLEN TESTPRODUCTS WITH SPX'S BEAR AUTOMOTIVE UNIT IN THE 1992 THIRD QUARTER SPX POSTED A PROFIT OF 97 MILLION OR 70 CENTS A SHARE ON SALES OF 237 MILLION THE NEW BUSINESS SHOULD BEGIN CONTRIBUTING TO SPX EARNINGS BY MID1994 SAID DALE A JOHNSON CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SPX IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE SPX SHARES CLOSED AT 16375 UP 375 CENTS 9308260017 930826 CHAOTIC CHANGE BEIJING'S GRIP WEAKENS AS FREE ENTERPRISE TURNS INTO FREEFORALL CHINESE SOCIAL ORDER BEGINS TO FRAY AMID AN EFFORT TO COOL RAGING MARKETS WORLD BANK URGES RESTRAINT BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL IT'S ANOTHER SWELTERING DAY IN THE WORLD'S HOTTEST ECONOMY NEVILLE LI A WIRY 23YEAROLD IN A SLEEVELESS TSHIRT LEANS AGAINST THE SHINY BLACK LINCOLN TOWN CAR HE IS HAWKING AND OFFERS A PERSONAL VIEW OF THE EPOCHAL CHANGES SWEEPING CHINA TEN YEARS AGO NOBODY COULD BUY THESE CARS HE SAYS GAZING AT THE HUNDREDS OF USED LUXURY AUTOS SITTING ALONG A DUSTY RURAL ROADSIDE IN GUANGDONG PROVINCE NOW MANY PEOPLE ARE RICH THEY HAVE THE CHANCE TO OWN ONE ASCRIBE THAT HISTORIC OPPORTUNITY TO CHINA'S SWEEPING ECONOMIC REFORMS AND AN ACCELERATING BREAKDOWN OF SOCIAL ORDER MANY OF THE MERCEDESBENZES BMWS AND LEXUSES IN JIUJIANG THE SOUTH CHINA FARMING TOWN WHERE MR LI WORKS ARE STOLEN SOME BEAR LICENSE PLATES FROM CALIFORNIA FRANCE AND THE MIDEAST ONE HONDA SPORTS A YALE STICKER MOST ARE SMUGGLED INTO CHINA WHERE HEAVY DUTIES DRIVE UP THE COST OF BUYING A CAR LEGITIMATELY AND THE PROFITS OF SNEAKING ONE IN AND SELLING IT THE CENTRAL GOVERNMENT IN BEIJING IS DISMAYED BUT THE LOCAL POLICE DON'T SEEM TO MIND THE PUBLIC SECURITY BUREAU IS SANDWICHED BETWEEN TWO BIG USEDCAR LOTS AND SOME OFFICERS NONCHALANTLY CRUISE PAST THEM IN A CHAMPAGNEPINK LEXUS REFORM IN CHINA IS RUNNING AWRY THE COMMAND ECONOMY IS MUTATING INTO NOT JUST A FREEENTERPRISE SYSTEM BUT A FREEFORALL RAPID CHAOTIC CHANGE IS FRAYING THE ECONOMIC AND POLITICAL LEVERS WITH WHICH BEIJING HAS EXERCISED CONTROL EVER SINCE THE COMMUNISTS TOOK OVER IN 1949 WITH NO NEW CONTROLS IN PLACE THE HEADLONG RUSH TO ECONOMIC DEVELOPMENT IS UNLEASHING A WAVE OF CRIME AND CORRUPTION SO PERVASIVE IS THE LOSS OF CONTROL THAT BEIJING IS RETREATING FROM SOME REFORMS RISKING POPULAR INDIGNATION THE GOVERNMENT LAST WEEK BACKED OFF A PROMISE TO FOCUS ON MACROECONOMIC POLICIES AND ZEROED IN ON WAGES BARRING ANY PAY INCREASES AT MONEYLOSING STATE ENTERPRISES AND RESTRICTING THEM ELSEWHERE JIANG ZEMIN THE COMMUNIST PARTY'S GENERAL SECRETARY SOUNDED A TOUGH WARNING THIS WEEK AGAINST CORRUPTION AND PROFITEERING IF WE LOWER OUR GUARD AND LET IT RUN WILD OUR PARTY WILL BE RUINED THE PEOPLE'S POWER WILL BE LOST AND THE GREAT CAUSE OF SOCIALIST MODERNIZATION WILL BE FORCED OFF TRACK APPARENTLY FOLLOWING UP ON THAT WARNING THE PARTY'S TOP DISCIPLINARY COMMITTEE YESTERDAY FORMALLY BANNED PARTY OFFICIALS FROM PLAYING THE STOCK MARKET ALSO YESTERDAY THE WORLD BANK URGED CHINA TO TAKE URGENT ACTION TO STOP ITS ECONOMY FROM OVERHEATING FURTHER IT WARNED THAT THE CURRENT RATE OF GROWTH ISN'T SUSTAINABLE AND ULTIMATELY MARKET FORCES WILL FORCE A SEVERE CORRECTION KEEPING THE ECONOMY IN HARNESS IS GETTING HARDER AND HARDER FOR BEIJING PROVINCES CITIES AND EVEN VILLAGES ARE GAINING AUTONOMY AND HUNDREDS OF MILLIONS OF PEOPLE IN THIS COUNTRY OF 12 BILLION ARE SUDDENLY PURSUING RICHES AS CAPITALISM SPREADS THE COMMUNIST PARTY IS LOSING INFLUENCE EVER SINCE DENG XIAOPING CAME TO POWER ALMOST 15 YEARS AGO AND LAUNCHED ECONOMIC REFORM BEIJING HAS FACED A DILEMMA HOW TO OPEN UP THE ECONOMY WHILE RETAINING POLITICAL CONTROL THE DISORDER SWEEPING CHINA MAY FORESHADOW CHANGE NOT ONLY IN THE ECONOMIC SYSTEM BUT IN THE AGING POLITICAL LEADERSHIP MR DENG WHO TURNED 89 ON SUNDAY IS RUMORED TO BE AILING DENG XIAOPING MAY NOT BE PHYSICALLY DEAD JUST YET BUT HE IS POLITICALLY IN THE GRAVE ONE LONGTIME CHINA WATCHER IN HONG KONG SAYS THE END OF THE DENG ERA COULD BRING ABOUT A HISTORIC CHANGE IN CHINA'S POLITICAL STRUCTURE UNLIKE THE FORMER SOVIET UNION WHERE REFORM BEGAN IN POLITICS AND THEN GOT OUT OF HAND BEIJING HAS SOUGHT TO PRESERVE ITS MONOPOLY ON POLITICAL POWER ONE OF THE CHINESE COMMUNIST PARTY'S STRENGTHS WAS THE COUNTRY'S CENTURIESOLD HISTORY OF CENTRALIZED POWER LIKE BLOOD RUSHING FROM THE HEART TO THE TINIEST CAPILLARIES CENTRALGOVERNMENT AGENTS WHETHER IMPERIAL BUREAUCRATS OR COMMUNIST CADRES ENFORCED THE CENTER'S MANDATES ALL THE WAY DOWN TO PEASANT VILLAGES OR WORK UNITS CHALLENGES TO THAT SYSTEM SUCH AS THE 1989 DEMOCRACY MOVEMENT HAVE BEEN SWIFTLY CRUSHED BUT CAPITALISM DOESN'T MIX WELL WITH CENTRALIZED POWER AS CHINA'S ECONOMY HAS FLOURISHED IT EXPANDED AT A 139 ANNUAL RATE IN THE 1993 FIRST HALF AFTER GROWING 125 LAST YEAR DECENTRALIZATION HAS ACCELERATED PROVINCES NOW CAN APPROVE FOREIGN INVESTMENTS OF UP TO 30 MILLION BORROW ABROAD IMPOSE TAXES AND FEES AND EVEN NEGOTIATE THEIR FISCAL CONTRIBUTIONS TO BEIJING THE CENTER IS SHEDDING POWER AT EVERY TURN SAYS MICHAEL TAYLOR A CHINA ANALYST AT MORGAN STANLEY & CO IN HONG KONG WHILE THE OLD ORDER IS BREAKING DOWN A NEW MARKET DISCIPLINE HASN'T BEEN ESTABLISHED THE MONEY SUPPLY IS VIRTUALLY OUT OF CONTROL CURRENCY IN CIRCULATION GREW 46 IN THE FIRST QUARTER LENDING OUTSIDE STATE CONTROL TOTALED 35 BILLION LAST YEAR COMPARED WITH 61 BILLION BY STATE BANKS BOTH FIGURES CONVERTED AT OFFICIAL RATES UNDERSTATE THE PURCHASING POWER INVOLVED MUCH OF THE MONEY FLOODED INTO SOARING PROPERTY MARKETS AND NEW STOCK EXCHANGES SOME FLOWED ABROAD A HONG KONG NEWSPAPER REPORTED THIS WEEK THAT AS MUCH AS 28 BILLION HAS BEEN SIPHONED OUT OF THE COUNTRY FORCING A ONETHIRD DEVALUATION IN THE YUAN AND SOME FLOWED INTO ILLEGAL ACTIVITIES IN THE FIRST HALF OF THIS YEAR OFFICIALS SAY THEY SOLVED MORE THAN 21000 CASES OF SMUGGLING COUNTERFEITING AND FRAUD GREAT WALL MACHINERY & ELECTRONICS CORP OF BEIJING SOLD 175 MILLION OF BONDS TO MORE THAN 200000 INVESTORS BY PROMISING 24 ANNUAL RETURNS AND IT FAILED IN JUNE LOSING PATIENCE THE CENTRAL GOVERNMENT IN LATE JUNE EMBARKED ON AN AUSTERITY PLAN TO TIGHTEN CREDIT AND DISCOURAGE SPECULATION SEEKING TO STEER RESOURCES TOWARD AGRICULTURE AND INFRASTRUCTURE PROJECTS CONTROLLED BY THE CENTER BEIJING IS TRYING NOT ONLY TO COOL THE SIZZLING ECONOMY BUT ALSO TO REIN IN LOCAL GOVERNMENTS BEIJING IS ATTEMPTING TO FIND A BALANCE BETWEEN CONTROL AND GROWTH MARTIN PETERSEN THE CENTRAL INTELLIGENCE AGENCY'S TOP ASIA EXPERT RECENTLY TOLD CONGRESS TO ENSURE COMPLIANCE VICE PREMIER ZHU RONGJI FIRED LI GUIXIAN CHINA'S CENTRAL BANK GOVERNOR AND PUT HIMSELF IN CHARGE HE ALSO DISPATCHED 10 TEAMS OF SENIOR CADRES TO ENSURE THAT THE PROVINCES WERE COMPLYING WITH BEIJING'S EDICTS AND WARNED THAT ANYONE FLOUTING CENTRAL DIRECTION WILL HAVE HIS HEAD CHOPPED OFF TOUGH TALK BUT A FRONTIERLIKE MENTALITY STILL PREVAILS IN MUCH OF THE COUNTRY IN CHENGDU THE CAPITAL OF RUGGED SICHUAN PROVINCE LOCAL OFFICIALS AT FIRST SEEMED TO COMPLY WITH A BAN ON ILLICIT STOCK DEALINGS BY SHUTTING DOWN A MARKET IN WHICH UP TO 30000 PEOPLE A DAY WERE TRADING UNREGISTERED SHARES THEN THE OFFICIALS SAID THEY WOULD RUN THE MARKET INSTEAD ON COMMISSION ABOUT THE ONLY PERSON WHOSE HEAD GOT NEAR A CHOPPING BLOCK WAS A BEIJING BANKER WHO GOT A SUSPENDED DEATH SENTENCE FOR TAKING BRIBES TO MAKE LOANS IF ANYTHING MR ZHU'S CRACKDOWN SPOTLIGHTED A POTENT NEW THREAT TO BEIJING'S POWER REGIONALISM THE ECONOMIC BOOM HAS ENABLED PROVINCES TO ACT INDEPENDENTLY OF THE CENTER AND OF EACH OTHER EARLIER THIS YEAR DIPLOMATS SAY HUNAN PROVINCE PUT ARMED PATROLS ON ITS BORDER WITH GUANGDONG PROVINCE IN A FUTILE EFFORT TO PREVENT ITS WEALTHY NEIGHBOR FROM BUYING GRAIN DIRECTLY FROM INDIVIDUAL HUNANESE FARMERS INSTEAD OF THROUGH HUNAN'S GOVERNMENT WHICH WANTED ITS CUT REGIONAL PROTECTIONISM HAS SURFACED BECAUSE THE STATE HAS RELINQUISHED ITS POWER TOO FAST SAYS LU YONGHUA A DEPUTY DIRECTOR AT BEIJING'S STATE COMMISSION FOR RESTRUCTURING THE ECONOMY NO PROVINCE ILLUSTRATES THE CENTRIFUGAL FORCES BETTER THAN GUANGDONG AGRICULTURALLY RICH AND JUST NORTH OF HONG KONG THE PROVINCE HAS LONG BEEN EXPOSED TO FOREIGN TRADE THROUGH ITS BUSTLING CAPITAL ON THE PEARL RIVER CANTON WHICH THE CHINESE CALL GUANGZHOU WITH A POPULATION OF ALMOST 65 MILLION BIGGER THAN FRANCE'S GUANGDONG HAS BEEN ENCOURAGED BY BEIJING TO PROCEED ONE STEP AHEAD IN ECONOMIC REFORM THUS GUANGDONG IS MORE AUTONOMOUS AT LEAST FISCALLY THAN OTHER PROVINCES IN 1980 IT GOT 80 OF ITS BUDGET FROM BEIJING LAST YEAR AFTER A DECADE OF PHENOMENAL ECONOMIC GROWTH GUANGDONG RELIED ON BEIJING FOR JUST 2 OF ITS MONEY IN FACT GUANGDONG IS THE BIGGEST PROVINCIAL CONTRIBUTOR TO BEIJING'S COFFERS SENDING IT AN ESTIMATED 1 BILLION THIS YEAR BUT BEIJING SADDLED WITH THE REMNANTS OF A MONEYLOSING COMMUNIST INDUSTRIAL EMPIRE IS SAID TO BE SEEKING AN ADDITIONAL 1 BILLION MUCH OF GUANGDONG'S MONEY COMES FROM TAXES AND FEES AND IT HAS BORROWED ABROAD AFTER NEGOTIATING ITS CONTRIBUTION TO BEIJING GUANGDONG IS FREE TO RAISE MONEY ITSELF AS ARE LOCAL CITY AND COUNTY GOVERNMENTS THOUGH THE CENTRAL GOVERNMENT OPPOSES ARBITRARY ONEROUS FEES SOME OF GUANGDONG'S FEES SUCH AS TOLLS ON NEW ROADS ARE REASONABLE AND SOME STIR COMPLAINTS SUCH AS A 5 TAX ON TRANSACTIONS BY FOREIGNERS TO HELP PAY FOR A NEW CANTON SUBWAY PROTESTS BY US AND EUROPEAN COMPANIES PROMPTED THE LOCAL GOVERNMENT TO WITHDRAW THE TAX ON BUSINESS BUT TOURISTS STILL PAY IT WITH FISCAL FREEDOM FROM BEIJING GUANGDONG CAN PUSH ITS OWN DEVELOPMENT REGARDLESS OF CENTRALGOVERNMENT POLICIES BUT THAT FREEDOM CAN CAUSE PROBLEMS IN YANGCHUN COUNTY IN GUANGDONG'S MOUNTAINOUS SOUTHWEST YAN WENCANG THE 45YEAROLD MAYOR BORROWED NEARLY 70 MILLION FROM STATE BANKS FOR TELECOMMUNICATIONS AND POWER PROJECTS LAST YEAR ALTHOUGH THE LOAN WAS FOUR TIMES THE COUNTY'S ANNUAL INCOME MR YAN ISN'T WORRIED THE PROVINCIAL GOVERNMENT WANTS US TO CATCH UP WITH THE DEVELOPMENT OF THE PEARL RIVER DELTA IN 10 YEARS SO IT SHOULD PAY FOR THE INVESTMENT HE SAYS IN THEORY THE BANKS REPORT TO BEIJING WHICH HAS BEEN TRYING TO CURB SUCH IMPRUDENT LENDING BY SETTING LOAN CEILINGS AND ORDERING ALL SPECULATIVE LOANS RECALLED WHILE MANY BUSINESSES SAY THEY ARE FEELING A REAL SQUEEZE BANKS EVADE THE CEILINGS BY LENDING TO AFFILIATES AND OTHER FINANCIAL INSTITUTIONS WHICH AREN'T COVERED BY THE CEILINGS AND RELEND THE MONEY SO MUCH MONEY HAS BEEN DIVERTED THAT MANY BANKS ARE DANGEROUSLY SHORT OF CASH THAT POSES A HUGE RISK IN SOME PROVINCES WHERE BANKS ARE SUPPOSED TO DISH OUT STATE PAYMENTS TO FARMERS WHO ARE REQUIRED TO SELL THEIR PRODUCE TO THE GOVERNMENT BANKERS HAVE ISSUED IOUS A PRACTICE BANNED BY BEIJING AFTER FARMERS RIOTED IN PAST YEARS SUCH RIOTS RECURRED THIS YEAR IN SICHUAN PROVINCE AND HAVE BEEN REPORTED IN GUANGDONG AND ELSEWHERE YET GUANGDONG VIEWS THE VOLATILE CHANGES CALMLY EVEN INFLATION NOW NEAR A 20 ANNUAL RATE IN THE CITIES IS JUST A TEMPORARY PROBLEM ONE OFFICIAL SAYS IN LATE JULY ON THE VERY DAY VICE PREMIER ZHU RONGJI WAS ANNOUNCING A MAJOR CRACKDOWN ON SPECULATIVE PROPERTY DEVELOPMENT TO STEM WHAT BEIJING CONSIDERS AN EXCESSIVE FLOW OF MONEY INTO REAL ESTATE SEVERAL RESIDENTIAL DEVELOPMENTS BACKED BY THE GUANGDONG GOVERNMENT WERE STAGING GLITZY SALES PROMOTIONS AT CANTON'S ORNATE CHINA HOTEL THREE DAYS LATER GUANGDONG'S GOVERNOR ZHU SENLIN ATTENDED THE GROUNDBREAKING FOR AN 80STORY OFFICE TOWER NEARBY SUCH ACTIVITIES HAVE FUELED RUMORS MR ZHU MAY BE FORCED OUT BY BEIJING TO SIGNAL THAT IT STILL HOLDS SOME CARDS MANY OTHER CITIES ALSO ARE FINDING WAYS AROUND THE SHORTAGE OF DEVELOPMENT MONEY IN NANHAI A SMALL GUANGDONG CITY THAT LOOKS LIKE ONE BIG CONSTRUCTION SITE MONEY FOR NEW PROJECTS COMES FROM EXPORT EARNINGS FROM MUNICIPALLY OWNED FACTORIES THE LOCAL GOVERNMENT STASHES ITS HARDCURRENCY INCOME IN HONG KONG NANHAI WAS ONE OF SEVERAL SOUTH CHINA CITIES THAT SHELLED OUT 491 MILLION FOR AN OFFICE TOWER THERE LAST YEAR AND THEN BORROWS AGAINST IT TO FINANCE PROJECTS AT HOME THE CITY THUS KEEPS ITS MONEY FREE OF BEIJING'S CONTROL EVEN THE GUANGDONG POLICE HAVE A TICKET TO WEALTH OUT OF BEIJING'S REACH IN A CANTON HIGHRISE IS THEIR JOINT VENTURE WITH A HONG KONG FIRM CALLED GUANGZHOU YONG TONG FUTURES SERVICES CORP FROM MORNING TO NIGHT HUNDREDS OF PEOPLE GATHER AROUND ELECTRONIC SCREENS BUYING OR SELLING FUTURES ON THE HANG SENG INDEX OF STOCK PRICES IN HONG KONG THEN FROM 730 PM TO 5 AM ANOTHER CROWD COMES IN TO BET ON STANDARD & POOR'S 500 STOCKINDEX FUTURES IN CHICAGO MOST INVESTORS USE THEIR COMPANIES' MONEY LAST OCTOBER BEIJING TRIED TO SHUT DOWN INDEPENDENT FINANCE FIRMS IN CANTON AFTER MANY LOCALS LOST MONEY PLAYING THE MARKET DURING EUROPEAN MONETARY TURMOIL OFFICIALS SAID THEY FEARED MANY OF THE FIRMS WERE TAKING MONEY FOR FUTURES OR FOREIGNEXCHANGE TRANSACTIONS BUT NEVER ACTUALLY PLACING IT ABROAD HOWEVER ANDREW K LI GUANGZHOU YONG TONG'S MANAGER SAYS THE COMPANY HAS A LOCALLY ISSUED LICENSE AND IS APPLYING FOR A NATIONAL LICENSE AS WELL BESIDES HE FIGURES THE POLICE CAN PROTECT THE BUSINESS THAT THEY THEMSELVES OWN THE TOP HAS A POLICY HE SAYS BUT WHEN IT'S TRANSMITTED IT MAY HAVE CHANGED DIRECTION THAT IS IF ANYONE DOES TRANSMIT IT IN LEI VILLAGE IN YANGCHUN COUNTY ONLY THREE OF 170 VILLAGERS ARE COMMUNIST PARTY MEMBERS REFORM AND OPENNESS ARE BETTER THAN COMMUNISM BECAUSE UNDER REFORM YOU CAN DO WHAT YOU WANT SAYS LEI DABEI A VILLAGER WHO ISN'T IN THE PARTY EVEN PARTY MEMBERS ARE DISCOVERING THAT ONE RECENT MORNING THREE GUANGDONG COMMUNIST YOUTH LEAGUE LEADERS PILED INTO A VAN BOUND FOR CANTON ONE A DEPUTY PARTY SECRETARY WAS GOING TO A PARTY INDOCTRINATION THE OTHER TWO HITCHING A RIDE WERE HOPING TO GET A 56000 BANK LOAN TO BUY NEW KARAOKE EQUIPMENT FOR A NIGHTCLUB THAT THE YOUTH LEAGUE OPENED EARLIER THIS YEAR THE CLUB PULLS IN 1750 A MONTH ONETHIRD WHAT THE YOUTH LEAGUE GETS ANNUALLY FROM THE PARTY AS THE VAN BOUNCED ALONG GUANGDONG'S NEW ROADS THE PARTY OFFICIAL COMMENTED OUR LEADERS HAVE SAID THAT IF THE COMMUNIST PARTY DOESN'T PARTICIPATE IN ECONOMIC BUILDING IT WILL COLLAPSE JULIA LEUNG AND KATHY CHEN CONTRIBUTED TO THIS ARTICLE 9308260016 930826 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO BUILDERS PUSH POSH PADS CATERING TO RENTERS WHO CHOOSE NOT TO OWN A HOME APARTMENT BUILDERS REPORT A GROWING UPSCALE MARKET OF PEOPLE WHO HAVE OPTED TO RENT NOT BUY DESPITE TODAY'S LOW INTEREST RATES THEY'D BOUGHT REAL ESTATE BEFORE AND LOST MONEY OR THEY HAVE A HOME ELSEWHERE THAT THEY CAN'T SELL SAYS MARK HUMPHREYS A DALLAS ARCHITECT JONATHAN KEMPNER OF THE NATIONAL MULTI HOUSING COUNCIL SAYS LIFESTYLE ALSO PLAYS A PART A GROWING GROUP IS FINDING THAT THE ADVANTAGES OF RENTING OUTWEIGH THE COSTS THE NEW NICHE IS TIMELY SINCE THE TRADITIONAL RENTAL MARKET YOUNG PEOPLE ON THEIR OWN IS SHRINKING SAYS LAURA ROWLEY OF MULTIHOUSING NEWS NEW APARTMENTS CATERING TO THESE UPSCALE RENTERS HAVE ELEMENTS OF SINGLEFAMILY HOMES SAYS JOSEPH PETERSEN HIS DALLAS COMPLEX HAS BIG THREEBEDROOM UNITS WITH LOTS OF PERKS LIKE ATTACHED GARAGES AND A MOVIEORDERING SYSTEM AKIN TO THOSE IN HOTELS THOMAS BOZZUTO'S MARYLAND DEVELOPMENT ALSO CARES FOR PETS WHEN TENANTS ARE AWAY BUT NEW TAXES MAY PUSH THESE RENTERS TO TRY HOMEOWNERSHIP SAYS THE NATIONAL ASSOCIATION OF HOME BUILDERS VOUCHERS FOR PANHANDLERS ACQUIRE CURRENCY IN MORE NEIGHBORHOODS WEST SIDE CARES A NEIGHBORHOOD GROUP IN MANHATTAN PLANS A PROGRAM TO CURB AGGRESSIVE PANHANDLING UNDER THE PLAN RESIDENTS CAN GIVE 25CENT VOUCHERS INSTEAD OF CASH TO PANHANDLERS WHO CAN REDEEM THEM AT LOCAL STORES FOR FOOD AND SERVICES BUT NOT LIQUOR THE IDEA BEGAN IN BERKELEY CALIF IN 1991 AND HAS BEEN ADOPTED IN EIGHT OTHER CITIES A NEW SENATE BILL CALLS FOR 36 MILLION SEED MONEY TO START 60 VOUCHER PROGRAMS RUN BY NONPROFITS THE PLAN ENSURES THAT A GOOD SAMARITAN'S SPARE CHANGE WON'T GO TO ALCOHOL OR DRUGS SAYS MATT WANNING OF THE RED APPLE GROUP NEW YORK WHICH WILL ACCEPT VOUCHERS IN TWO OF ITS SUPERMARKETS BUT WILLIAM DUBOIS OF SANTA BARBARA RESCUE MISSION IN CALIFORNIA SAYS PEOPLE IN THE STREETS CAN FIND WAYS TO RECYCLE VOUCHERS FOR CASH A SANTA BARBARA BUSINESS GROUP CONSIDERED THE PLAN BUT BACKED OFF AMID CRITICISM IT WOULD DRAW MORE PANHANDLERS IT'S SHOWTIME FOODSERVICE FIRMS JAZZ UP COMPANY CAFETERIAS TO LURE DINERS DISPLAY COOKING OR PREPARING MEALS BEFORE A CUSTOMER GOES ON THE MENU AS FOODSERVICE FIRMS WORK TO BOOST EMPLOYEE PATRONAGE OF COMPANY CAFETERIAS WITH MANY COMPANY CLIENTS CUTTING STAFF CAFETERIAS END UP WITH A SMALLER CUSTOMER BASE SAYS WALTER SCHRUNTEK FOODSERVICE DIRECTOR MAGAZINE ANOTHER REVENUERAISING TACTIC IS TO ADD FASTFOOD BRANDS SOME CAFETERIAS RUN BY SERVICE AMERICA CORP OFFER CHICKEN FROM HOOTERS OF AMERICA AN ATLANTA CHAIN KNOWN FOR ITS SCANTILY CLAD WAITRESSES MEANWHILE ARA SERVICES INC IN PHILADELPHIA HAS ADJUSTED TO REDUCED KITCHEN AND CAFETERIA SPACE AT SOME DOWNSIZING CLIENTS BY SWITCHING TO MODULAR EQUIPMENT AND SERVING STATIONS THIS LETS THE CAFETERIA MAINTAIN ITS MENU SELECTION A SPOKESWOMAN SAYS SERVICEMASTER MANAGEMENT SERVICES IN DOWNERS GROVE ILL SAYS THAT FOOD PRICES HAVE BEEN RAISED TO STREET LEVEL AS CORPORATE CLIENTS SHIFT TO BREAKEVEN DINING OPERATIONS IN A COOPERS & LYBRAND SURVEY 68 OF US COMPANIES POLLED HAD REDUCED DININGROOM SUBSIDIES IN THE PAST YEAR A PRETENTIOUS LITTLE SALAD W ATLEE BURPEE & CO HAD A TOMATO TASTING TO LAUNCH ITS NEW VEGETABLE VARIETIES FOR 1994 SAMPLE WEDGES CAME FROM THE BOTTOM HALF OF THE TOMATOES AND PALATES WERE CLEANSED WITH SPARKLING WATER WITH CUCUMBER SLICES BRITISH AIRWAYS TURNS OVER A CHANNEL ON ITS INFLIGHT AUDIO SYSTEM TO CHILDREN'S PROGRAMMING FEATURING NURSERY RHYMES READINGS FROM CHILDREN'S BOOKS AND FAVORITE KIDDY SONGS THE CHANNEL IS CALLED AFZ FOR ADULTFREE ZONE RADIO BACTERIA FOR YOUR BATHTUB CLOROX CO BRINGS TO THE HOME A WASTEDISPOSAL TECHNOLOGY BORROWED FROM THE FASTFOOD INDUSTRY ITS LATEST LIQUIDPLUMR PRODUCT COMPRISES MICROORGANISMS LONG USED IN RESTAURANTS THAT FEED ON GREASE FOOD AND SOAP SCUM DRUG PACKAGERS SEE MORE ELECTRIC EYES AHEAD AS FDA ALTERS A LABELING RULE A CHANGE IN DRUGLABEL CONTROLS WILL ABSOLVE DRUG AND PACKAGING FIRMS FROM LABEL RECONCILIATION A CHORE THAT INVOLVES ACCOUNTING FOR EVERY SINGLE DRUG LABEL IF THEY HAVE AUTOMATED INSPECTION SYSTEMS THE CHANGE IN THE WORKS SINCE 1989 TAKES HOLD NEXT AUGUST IT MEANS MORE BUSINESS FOR MAKERS OF SOCALLED VISION SYSTEMS WHICH CAN SCAN 100 OF THE LABELS SAYS PACKAGING MAGAZINE SUCH SYSTEMS ARE ALREADY USED AT MANY MAJOR FIRMS BUT SOME FIRMS WANT TO SEE REFINED TECHNOLOGY THE IDEA IS TO ENCOURAGE WIDER USE OF AUTOMATED SYSTEMS TO IMPROVE THE CONTROL PROCESS SAYS PAUL VOGEL AN FDA OFFICIAL THE AGENCY PUTS THE COST OF SUCH SYSTEMS AT 1000020000 FOR A BASIC UNIT AND UP TO 40000 OR SO ROBERT C SMITH HEAD OF THE CONTRACT PACKAGERS ASSOCIATION IN HERNDON VA SAYS SOME SMALLER PACKAGERS MAY FIND EVEN THAT MODEST SUM ONEROUS BUT HE ADDS THE SYSTEMS WOULD HELP PROTECT PEOPLE THE FDA SAYS MISLABELING ACCOUNTS FOR 25 OF ALL DRUG RECALLS BRIEFS FREDERICK'S OF HOLLYWOOD LINGERIE MUSEUM LENDS INGRID BERGMAN'S CORSET TO ROLYWHOLYOVER A CIRCUS A SHOW DESIGNED BY THE LATE JOHN CAGE FOR THE MUSEUM OF CONTEMPORARY ART IN LOS ANGELES AN 800POUND BUTTER SCULPTURE TO BE DISPLAYED TODAY AT THE NEW YORK STATE FAIR SHOWS KIDS EATING ICE CREAM 9308260015 930826 INTERNATIONAL BRIEF FRIED KRUPP AG HOESCHKRUPP NEWLY FORMED STEEL MAKER POSTS PRETAX 1STHALF LOSS LOSSES IN ITS MACHINEBUILDING DIVISION AND STEEL OPERATIONS TRIGGERED HEAVY LOSSES AT NEWLY FORMED FRIED KRUPP AG HOESCHKRUPP IN THE FIRST HALF IN THE FIRST HALF KRUPPHOESCH POSTED A PRETAX LOSS OF 324 MILLION MARKS 1929 MILLION COMPARED WITH A PRETAX PROFIT IN THE YEAREARLIER PERIOD OF 234 MILLION MARKS KRUPPHOESCH USED COMPARABLE FIGURES FROM THE TWO COMPANIES TO GENERATE LAST YEAR'S PRETAX PROFIT FIGURE KRUPPHOESCH CHAIRMAN GERHARD CROMME SAID THE COMPANY LIKELY WILL CONTINUE TO POST LOSSES IN THE SECOND HALF ALTHOUGH AT A LOWER LEVEL THAN THE FIRST HALF FOR THE NEXT SIX TO 12 MONTHS KRUPPHOESCH WILL HAVE TO UNDERGO A PAINFUL RESTRUCTURING PROCESS IN ORDER TO RETURN TO PROFITABILITY HE SAID SALES FELL 16 IN THE FIRST HALF TO 958 BILLION MARKS FROM 1134 BILLION MARKS THE YEAR EARLIER ORDERS ALSO FELL 16 IN THE FIRST HALF TO 101 BILLION MARKS FROM 12 BILLION MARKS 9308260014 930826 KEYSTONE CEMENT CO EXSUPERVISOR CHARGED WITH COMPUTER CRIME HARRISBURG PA STATE PROSECUTORS IN PENNSYLVANIA CHARGED KEYSTONE CEMENT CO WITH ONE FELONY COUNT OF UNLAWFUL USE OF A COMPUTER AND ONE MISDEMEANOR COUNT OF TAMPERING WITH RECORDS RELATING TO THE BURNING OF HAZARDOUS WASTES AT A BATH PA CEMENT PLANT IN 1991 AND 1992 THE MAXIMUM PENALTY TO KEYSTONE CEMENT A UNIT OF GIANT GROUP LTD FOR THE COUNTS TOGETHER IS A 25000 FINE THE COMPANY DENIED ALL CHARGES THE PENNSYLVANIA ATTORNEY GENERAL'S OFFICE ALSO CHARGED JAMES LONGENBACH A FORMER SUPERVISOR AT THE BATH PLANT WITH ALTERING A COMPUTER PROGRAM SO RECORDS WOULDN'T SHOW IF THE COMPANY EXCEEDED STATE FUELBURNING LIMITS THE ATTORNEY GENERAL SAID A KEYSTONE CEMENT EMPLOYEE TOLD INVESTIGATORS THAT MR LONGENBACH INSTRUCTED HIM TO CHANGE THE PROGRAM MR LONGENBACH FACES A MAXIMUM FINE OF 35000 AND 17 YEARS IN PRISON HE WILL BE 100 VINDICATED OF ANY WRONGDOING SAID ALAN J HOFFMAN MR LONGENBACH'S ATTORNEY IN PHILADELPHIA HE IS COMPLETELY INNOCENT MR LONGENBACH AND REPRESENTATIVES FROM KEYSTONE CEMENT AGREED TO APPEAR FOR ARRAIGNMENT AT AN UNSPECIFIED DATE THE ATTORNEY GENERAL'S OFFICE SAID THE CHARGES FOLLOWED A 17MONTH INVESTIGATION DURING WHICH THE STATE EXAMINED SEVEN MONTHS OF COMPANY RECORDS KEYSTONE'S CEMENTMAKING OPERATION INVOLVES BURNING HAZARDOUSWASTE SOLVENTS AS FUEL TO HELP HEAT KILNS THE COMPANY STRESSED THAT THERE AREN'T CHARGES OF VIOLATING ENVIRONMENTAL LAWS HARMING THE ENVIRONMENT OR HARMING ANYONE'S HEALTH 9308260013 930826 INTERNATIONAL BRIEF JOHN FAIRFAX HOLDINGS LTD COMPANY'S OPERATING PROFIT WAS 45 MILLION FOR YEAR JOHN FAIRFAX HOLDINGS LTD AN AUSTRALIAN NEWSPAPER PUBLISHING CONCERN REPORTED THAT AFTERTAX OPERATING PROFIT TOTALED 672 MILLION AUSTRALIAN DOLLARS US45 MILLION IN THE YEAR ENDED JUNE 30 COMPARABLE FIGURES WEREN'T DISCLOSED THE FIGURE MARKS THE FIRST FULLYEAR RESULT SINCE THE COMPANY WAS RELISTED ON THE AUSTRALIAN STOCK EXCHANGE AFTER CANADIAN MEDIA MOGUL CONRAD BLACK ACQUIRED A 25 STAKE THE STAKE IS HELD THROUGH MR BLACK'S BRITISH COMPANY TELEGRAPH PLC JOHN FAIRFAX PROVIDED CERTAIN FIGURES FOR THE LATEST YEAR'S ACCOUNTS BASED ON PRO FORMA COMPARATIVE RESULTS FOR THE 1992 FISCAL YEAR THOSE FIGURES SHOW THE COMPANY RECORDED A 56 INCREASE IN TOTAL OPERATING REVENUE TO A7701 MILLION FROM A7291 MILLION EARNINGS BEFORE INTEREST AND TAXATION ROSE 30 TO A168 MILLION FROM A1288 MILLION 9308260012 930826 INTERNATIONAL BRIEF CATHAY PACIFIC AIRWAYS FIRSTHALF PROFIT FELL 46 DUE TO A STRIKE RECESSION A CRIPPLING FLIGHT ATTENDANTS' STRIKE COUPLED WITH RECESSION IN KEY MARKETS SLASHED CATHAY PACIFIC AIRWAYS' FIRSTHALF PROFIT BY 46 SIGNIFICANTLY MORE THAN ANALYSTS HAD EXPECTED THE HONG KONGBASED CARRIER'S NET INCOME FOR THE HALF TOTALED 681 MILLION HONG KONG DOLLARS US879 MILLION DOWN FROM HK126 BILLION A YEAR EARLIER THE 17DAY JANUARY STRIKE LAUNCHED TO PROTEST FALLING STAFF LEVELS AND THE FIRING OF THREE CABINCREW MEMBERS COINCIDED WITH THE PEAK TRAVEL SEASON DURING THE CHINESE NEW YEAR IT COST CATHAY AN ESTIMATED HK240 MILLION IN PROFIT IT ALSO APPARENTLY HAS CAUSED A LINGERING IMAGE PROBLEM ANALYSTS SAID CATHAY'S LOAD FACTOR OR PERCENTAGE OF SEATS FILLED ON CATHAY FLIGHTS FELL TO AN AVERAGE 68 FOR THE FIRST HALF FROM 73 A YEAR EARLIER THE STEEPEST DROP SINCE THE PERSIAN GULF WAR 9308260011 930826 WHAT'S NEWS WORLDWIDE A MUSLIM CLERIC WAS INDICTED IN THE WORLD TRADE CENTER BOMBING SHEIK OMAR ABDELRAHMAN WAS INDICTED ON CONSPIRACY CHARGES IN CONNECTION WITH THE BOMBING OF THE WORLD TRADE CENTER AND THE PLANNED ASSASSINATION OF EGYPT'S PRESIDENT MUBARAK THE CLERIC HAS BEEN IN CUSTODY SINCE EARLY JULY WHEN HE WAS ORDERED DEPORTED BY US IMMIGRATION OFFICIALS THE NEW INDICTMENT HANDED UP BY A FEDERAL GRAND JURY IN NEW YORK MARKS THE FIRST TIME THE SHEIK HAS BEEN CRIMINALLY CHARGED IN THE US THE INDICTMENT ALSO INCLUDES NEW ALLEGATIONS AGAINST EL SAYYID NOSAIR WHO WAS ACQUITTED IN THE 1990 KILLING OF MILITANT RABBI MEIR KAHANE A UN AID CONVOY REACHED THE EMBATTLED BOSNIAN CITY OF MOSTAR TWENTYSEVEN TRUCKS CARRYING FOOD AND MEDICINE ENTERED THE CITY AND UNLOADED SUPPLIES IN THE CROATIAN SECTOR AND LATER IN THE MUSLIM ENCLAVE WHERE 55000 PEOPLE WERE SAID TO BE FACING STARVATION THE CONVOY HAD BEEN BLOCKED FOR HOURS ON ACCESS ROADS TO THE CITY BY CROAT WOMEN TRYING TO PREVENT AID FROM REACHING MUSLIMS ONCE ALLIES CROATS AND MUSLIMS HAVE BEEN FIGHTING IN RECENT WEEKS FOR MOSTAR IN THE SOUTHWEST AND ACROSS CENTRAL BOSNIA BOSNIA'S MUSLIMLED GOVERNMENT PLEADED FOR THE WORLD COURT TO ORDER OTHER COUNTRIES TO TAKE STEPS TO HALT SERB GENOCIDE AGAINST MUSLIMS YELTSIN APPEALED TO POLISH CITIZENS FOR FORGIVENESS AS THE RUSSIAN PRESIDENT PLACED FLOWERS AT A WARSAW MONUMENT COMMEMORATING 15000 POLISH OFFICERS KILLED DURING WORLD WAR II BY THE SOVIET SECRET POLICE HE ALSO PLEDGED TO WITHDRAW THE LAST SOVIET MILITARY FORCES FROM POLAND BY OCT 1 THREE MONTHS AHEAD OF SCHEDULE RIGHTIST REBELS FREED THEIR LAST FIVE HOSTAGES IN NORTHERN NICARAGUA ACCORDING TO LOCAL RADIO REPORTS MEANWHILE RIVAL SANDINISTAS ANNOUNCED THAT THEY WOULD RELEASE THE REMAINING FIVE HOSTAGES THEY HELD IN MANAGUA INCLUDING VICE PRESIDENT GODOY THE REPORTS SPURRED HOPES FOR AN END TO A SIXDAY HOSTAGE STANDOFF PLO LEADER ARAFAT HUDDLED WITH PROMINENT PALESTINIANS IN JORDAN TO DISCUSS STRATEGY AHEAD OF A MEETING TODAY OF THE PLO EXECUTIVE COMMITTEE IN TUNISIA ARAFAT IS FACING AN OPEN REVOLT AGAINST HIS LEADERSHIP PLO SOURCES SAID HE IS TRYING TO IGNORE CRITICISM OVER THE PROGRESS OF PEACE TALKS AND THE GROUP'S FINANCIAL PROBLEMS THE MARS OBSERVER DIDN'T CONTACT EARTH AS PROGRAMMED DIMMING NASA'S HOPES FOR SALVAGING THE 1 BILLION MISSION TO MARS US OFFICIALS CONCEDED THE SITUATION IS GRIM BUT SAID THEY AREN'T READY TO DECLARE THE MISSION A TOTAL LOSS THEY PLAN TO MAKE ATTEMPTS TO REESTABLISH COMMUNICATION WITH THE CRAFT AN OZONERELATED STUDY CONCLUDED THAT GLOBAL EMISSIONS OF THE TWO WORST OZONEDESTROYING CHEMICALS ARE SLOWING SOONER THAN RESEARCHERS HAD EXPECTED AND REPAIR OF THE OZONE LAYER COULD BEGIN BY THE YEAR 2000 THE STUDY WHICH CITES AGGRESSIVE EFFORTS BY INDUSTRY TO FIND REPLACEMENTS FOR THE CHEMICALS APPEARS IN NATURE A BRITISH JOURNAL THE NAVY REOPENED THE TAILHOOK SEXABUSE INVESTIGATIONS OF FIVE SENIOR OFFICERS INCLUDING THE COMMANDER OF THE BLUE ANGELS FLYING TEAM AND A PRESIDENT OF THE TAILHOOK ASSOCIATION MEANWHILE A MILITARY JUDGE DISMISSED ONE OF TWO ASSAULT CHARGES AGAINST A NAVY COMMANDER GREGORY TRITT WHO IS FACING COURTMARTIAL IN THE CASE NORTH KOREA AGREED FOR THE FIRST TIME TO WORK WITH THE US TO ACCOUNT FOR THOUSANDS OF AMERICAN AND ALLIED TROOPS LISTED AS MISSING SINCE THE END OF THE KOREAN WAR THE PENTAGON SAID THE US GOVERNMENT LISTS ABOUT 8140 US SERVICEMEN AS UNACCOUNTED FOR FROM THE CONFLICT ISRAEL'S SUPREME COURT REJECTED A PETITION CHALLENGING THE LEGALITY OF JEWISH SETTLEMENTS IN THE OCCUPIED TERRITORIES THE COURT SAID A DECISION ON SETTLEMENTS COULD INTERFERE WITH PEACE TALKS ON TRADING LAND FOR PEACE MEANWHILE A GROUP OF JEWS OPPOSED TO GIVING UP ANY PART OF THE GOLAN HEIGHTS DECLARED ANOTHER NEW SETTLEMENT THERE CHINA ACKNOWLEDGED HOLDING SECRET TALKS WITH LEADERS OF TIBET'S EXILED INDEPENDENCE MOVEMENT AND SAID IT WAS PREPARED TO NEGOTIATE ANYTHING WITH TIBET'S SPIRITUAL LEADER THE DALAI LAMA EXCEPT THE HIMALAYAN TERRITORY'S INDEPENDENCE THE SECRET MEETINGS LAST MONTH IN BEIJING WERE THE FIRST TALKS IN 10 YEARS BETWEEN THE TWO SIDES 9308260010 930826 INTERNATIONAL BRIEF HENKEL KGAA FIRSTHALF PRETAX PROFIT FELL 15 AT CHEMICAL CONCERN GERMAN SPECIALTY CHEMICAL MAKER HENKEL KGAA SAID PRETAX PROFIT FELL 15 TO 328 MILLION MARKS 1954 MILLION AS SALES DROPPED 3 TO 707 BILLION MARKS 421 BILLION IN THE FIRST HALF OF 1993 THE COMPANY SAID THAT WHILE RESTRUCTURING COSTS PRESSURED PRETAX PROFIT ITS NET INCOME WAS ALMOST AT THE LEVEL OF THE PREVIOUS YEAR'S BECAUSE OF A LOW TAX PAYMENT THE NET INCOME FIGURE WASN'T RELEASED HENKEL SAID ITS DOMESTIC SALES IN THE FIRST HALF FELL 14 TO 207 BILLION MARKS FROM 21 BILLION MARKS A YEAR AGO HOWEVER SALES TO OTHER EUROPEAN COUNTRIES FELL 8 HENKEL SAID SALES IN ITS CHEMICAL SECTOR REMAINED STEADY DESPITE THE DIFFICULT ECONOMIC ENVIRONMENT POSITIVE SALES DEVELOPMENT IN NORTH AND SOUTH AMERICA HELPED OFFSET DOWNTURNS IN EUROPE HENKEL SAID 9308260009 930826 MARKETING & MEDIA MARKETSCAN UNILEVER JOINS LIQUID SOAP FIGHT FORCING COMPETITORS TO SCRAMBLE BY STEFANIE ILGENFRITZ LIQUID SOAP MAKERS ARE IN A LATHER COLGATEPALMOLIVE CO HAS DOMINATED THE FASTGROWING 289 MILLION MARKET FOR LIQUID SOAPS SINCE IT ACQUIRED THE SOFTSOAP BRAND IN 1987 BUT NOW UNILEVER GROUP IS ROLLING OUT A LIQUID VERSION OF ITS LEVER 2000 A BRAND THAT MADE ITS NATIONAL DEBUT IN 1991 AND HAS ALREADY GRABBED 72 OF THE BAR SOAP BUSINESS IT'S GOING TO BE A COMPETITIVE BATTLEFIELD SAYS BONITA AUSTIN AN ANALYST WITH LEHMAN BROTHERS NOBODY IS GOING TO ROLL OVER AND GIVE UP MARKET SHARE ALREADY BOTH COLGATE AND DIAL CORP MAKER OF THE NO 2 LIQUID BRAND ARE FIGHTING BACK BY PUMPING UP THEIR ADVERTISING AND PROMOTIONAL SPENDING COLGATE IS ALSO PULLING OUT THE STOPS WITH ITS NEW KITCHEN SOFTSOAP THE PRODUCT DUE OUT LATER THIS YEAR CLAIMS TO KILL GERMS CONTROL ODORS CUT GREASE AND SMELL LIKE LEMONS AND COMPETITORS QUESTION UNILEVER'S PREMIUM POSITIONING FOR LEVER 2000 WHICH WAS ORIGINALLY PRICED AT 20 MORE THAN RIVAL BRANDS INDEED UNILEVER CONFIRMS IT HAS ALREADY ROLLED BACK PRICES AMID FIERCE COMPETITION BUT WON'T SAY BY HOW MUCH WE'VE KNOWN THE CONSUMER A LOT LONGER THAN OUR COMPETITORS SAYS PAT MCMARTIN MARKETING MANAGER US PERSONAL CARE AT COLGATE I DON'T SEE A WHOLE HECK OF A LOT NEW HERE EXCEPT FOR THE LEVER NAME THE SOAP SKIRMISH IS UNDERSTANDABLE AT A TIME WHEN SALES OF MANY HEALTH AND BEAUTY CARE PRODUCTS ARE LACKLUSTER THE MARKET FOR LIQUID CLEANSERS IS BUBBLING ALONG LIQUID SOAP SALES IN SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS INCREASED 83 FOR THE 12 WEEKS ENDED MAY 23 COMPARED WITH THE SAME PERIOD LAST YEAR ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE LIQUID SOAPS WHICH ARE USED MOSTLY FOR WASHING HANDS CONTINUE TO GAIN CONVERTS FROM SLOPPIER CAKES OF SOAP WHAT'S MORE MARKETERS HAVE CAUGHT CONSUMERS' ATTENTION BY SPINNING OUT MYRIAD NEW PRODUCT VARIATIONS AND SPENDING HEAVILY TO PROMOTE THEM AMONG THE NEW ITEMS ON RETAILERS' SHELVES A CLEAR SOFTSOAP FOR SENSITIVE SKIN AND A LIQUID SOAP LACED WITH VITAMIN E FROM DIAL CERTAINLY COLGATE AND DIAL SEEM FIRMLY ENTRENCHED TOGETHER THE TWO BRANDS ACCOUNT FOR SOME 50 OF THE LIQUID SOAP MARKET SALES OF SOFTSOAP INCREASED 258 DURING THE RECENT 12WEEK PERIOD WHILE SALES OF DIAL LIQUID GREW 357 NEARLY EVERY OTHER MAJOR BRAND IN THE CATEGORY SUFFERED HOWEVER AS MARKETERS FOCUSED THEIR ATTENTION ON THE MUCH LARGER BARSOAP BUSINESS IN THE WAKE OF LEVER 2000'S LAUNCH SALES OF UNILEVER'S DOVE BEAUTY WASH DECLINED 321 DURING THE 12WEEK PERIOD SALES OF PROCTER & GAMBLE CO'S LIQUID IVORY FELL 223 WHILE SALES OF ITS SAFEGUARD BRAND DECLINED BY 397 A SPOKESWOMAN FOR PROCTER & GAMBLE SAYS THE COMPANY IS NOT SATISFIED WITH THE PERFORMANCE OF ITS LIQUID SOAPS BUT ADDS THAT BAR SOAPS ACCOUNT FOR 87 OF ITS PERSONAL CARE SOAPS UNILEVER DECLINED TO COMMENT ON DOVE'S WEAK PERFORMANCE NEVERTHELESS UNILEVER IS HOPING IT CAN LEVERAGE THE SUCCESS OF ITS LEVER 2000 BAR SOAP THE COMPANY MADE A SPLASH WITH LEVER 2000 ONE OF THE FIRST TRULY NEW BAR SOAP BRANDS SINCE 1986 BY STAKING OUT A POSITION AS A CLEANSER THAT IS BOTH MILD FOR THE SKIN AND EFFECTIVE AS A DEODORANT THE COMPANY HAS ALREADY GRABBED THE NO 3 SPOT IN THE CATEGORY AS THEY GO TO LIQUID THEY THEN CAN BUILD ON THAT BRAND EQUITY AND DO THE SAME THING THEY DID IN THE BAR MARKET PREDICTS DAVID WILLIAMS A PRINCIPAL WITH NEW ENGLAND CONSULTING GROUP IN WESTPORT CONN TO LURE NEW CONSUMERS LEVER IS STOKING THE LAUNCH OF ITS LIQUID SOAP WITH COUPONS AND FREE SAMPLES THE COMPANY IS ALSO REFINING ITS PITCH WHILE BARS OF LEVER 2000 WERE TOUTED AS A DEODORANT SOAP THE LIQUID VERSION HAS BEEN DUBBED AN ANTIBACTERIAL AGENT IN AN EFFORT TO CAPITALIZE ON SOME CONSUMERS' GROWING CONCERNS ABOUT GERMS THE BASIC FORMULA HOWEVER HASN'T CHANGED BOTH VERSIONS CONTAIN THE SAME ACTIVE INGREDIENT TRICLOSAN UNILEVER'S RIVALS ARE SKEPTICAL DESPITE ITS INITIAL SUCCESS SALES OF LEVER 2000 BAR SOAPS IN SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS DECLINED 7 DURING THE 12WEEK PERIOD ACCORDING TO INFORMATION RESOURCES WHAT'S MORE GERMFIGHTING CLAIMS HAVE BECOME COMMON IN THE CATEGORY SINCE DIAL INTRODUCED ANTIBACTERIAL LIQUID DIAL BACK IN 1987 NEARLY EVERY OTHER MAJOR BRAND INCLUDING SOFTSOAP SAFEGUARD AND JERGENS NOW SELL ANTIBACTERIAL PRODUCTS WE CREATED THE ANTIBACTERIAL CATEGORY SAYS JOHN TEETS DIAL'S CHAIRMAN OUR COMMITMENT IS TO BE NO 1 IN ANTIBACTERIAL SOAPS AND WE EXPECT TO REMAIN NO 1 DIAL ISN'T TAKING ANY CHANCES THOUGH THE COMPANY RAN 18 PROMOTIONS DURING THE FIRST FIVE MONTHS OF THIS YEAR COMPARED WITH 16 DURING THE SAME PERIOD LAST YEAR ACCORDING TO PROMOTION INFORMATION MANAGEMENT IN A SIMILAR DEFENSIVE MANEUVER SOFTSOAP NEARLY TRIPLED THE NUMBER OF ITS OWN COUPON OFFERS AND OTHER PROMOTIONS BETWEEN JANUARY AND MAY AND VOWS TO NEARLY DOUBLE ITS AD BUDGET FOR THE YEAR LEVER 2000 IS HOPING TO LEVERAGE ITS SUCCESS IN BAR SOAPS IN THE MARKET FOR LIQUID SOAPS BUT MARKET LEADERS SOFTSOAP AND LIQUID DIAL ARE FIGHTING BACK 9308260008 930826 THE NEW TAX LAW SEARCHING FOR SHELTER YOUR MONEY MATTERS INVESTORS FACE A STRUGGLE IN ATTEMPT TO REVISIT DOUBLEDIGIT GAINS OF THE '80S BY ROBERT MCGOUGH AND KAREN SLATER DAMATO STAFF REPORTERS OF THE WALL STREET JOURNAL STOCKS ARE HIGH INTEREST RATES ARE LOW AND TAXES JUST WENT UP FOR INVESTORS STRUGGLING TO KEEP UP THERE MAY BE TROUBLE AHEAD MANY INVESTORS ARE STILL HOPING TO REVISIT THE DOUBLEDIGIT GAINS ON STOCKS AND BONDS THEY KNEW IN THE 1980S INSTEAD THEY SHOULD BE ADJUSTING THEIR PORTFOLIOS FOR A PERIOD OF LOW RETURNS MANY PEOPLE SAY IF THE STANDARD & POOR'S 500 INDEX DURING THE NEXT FIVE YEARS GOES UP 3 TO 5 A YEAR THAT'S GOOD SAYS JEFFREY VINIK PORTFOLIO MANAGER OF THE GIANT FIDELITY MAGELLAN FUND MR VINIK SEES A CHOPPY MARKET AHEAD MEANWHILE THE RECENT TAX INCREASE ON ORDINARY INCOME MAKES THE OUTLOOK EVEN WORSE FOR UPPERINCOME INVESTORS FEDERAL TAXES ON DIVIDENDS AND INTEREST NOW RUN AS HIGH AS 396 UP FROM 31 THE EFFECTIVE MARGINAL RATE CAN BE AS HIGH AS 44 WHEN OTHER TAX PROVISIONS ARE TAKEN INTO ACCOUNT AND THAT ISN'T EVEN COUNTING STATE AND LOCAL LEVIES BY COMPARISON THE TAX RATE ON LONGTERM CAPITAL GAINS WHICH REMAINS CAPPED AT 28 IS LOOKING BETTER ALL THE TIME TAXES COMBINED WITH EVEN MODERATE INFLATION CAN QUICKLY EAT UP RETURNS ESPECIALLY ON INCOMEORIENTED INVESTMENTS AND TODAY'S LOWRETURN OUTLOOK ONLY COMPOUNDS THE PROBLEM FOR INSTANCE A 5 YIELD ROUGHLY WHAT FIVEYEAR TREASURY BONDS PAY TODAY FALLS TO 3 AFTER BEING TAXED AT A 396 RATE SAYS MICHAEL L TENNICAN A MANAGING DIRECTOR AT ALTA RESEARCH INC A CONCORD MASS CONSULTING CONCERN FACTOR IN A MODEST 25 INFLATION RATE AND THE REAL RETURN AFTER ADJUSTING FOR INFLATION DROPS TO A MICROSCOPIC 05 THIS ISN'T JUST A PROBLEM FOR THE RICH EVEN UPPERMIDDLEINCOME INVESTORS WITH MORE MODERATE TAX RATES FACE AN UPHILL BATTLE AGAINST INFLATION AND TAXES CONSIDER THIS BETWEEN 1973 AND 1992 THE TOTAL RETURN ON THE S&P 500PRICE CHANGE PLUS INTEREST WAS A STUNNING 756 BUT AFTER TAXES AND INFLATION UPPERMIDDLEINCOME INVESTORS OR ANYONE WITH AN ADJUSTED GROSS INCOME OF 50000 TO 100000 IN 1992 DOLLARS EKED OUT A 39 RETURN ON THE S&P 500 IN THAT PERIOD AN ALTA STUDY SHOWS THE NUMBERS ASSUME THAT INVESTORS REALIZED THEIR CAPITAL GAINS AND PAID TAXES ON THEM EACH YEAR INVESTORS IN LONGTERM GOVERNMENT BONDS FARED EVEN WORSE LOSING 16 CENTS OF EVERY DOLLAR INVESTED IN THE 197392 PERIOD ALTA'S DATA SHOW UNDER THE BEST OF CIRCUMSTANCES IT'S HARD TO PRESERVE CAPITAL AND MAKE IT GROW SAYS STEVEN P SOMES A PORTFOLIO MANAGER AT STATE STREET RESEARCH & MANAGEMENT CO AFTER TAXES AND AFTER INFLATION IT'S INCREDIBLY HARD CONSERVATIVE INVESTORS GET HIT HARDEST INVESTORS IN MONEY MARKET FUNDS YIELDING AROUND 26 ARE LOSING MONEY BECAUSE OF INFLATION ALONE AND PAYING TAXES ON THEIR MONEYLOSING INVESTMENT TO BOOT YOU HAVE TO BE A RISKTAKER IF YOU WANT TO PRESERVE OR MAKE YOUR CAPITAL GROW MR SOMES SAYS TO WIN LONG TERM INVESTORS SHOULD FOCUS ON THE BASICS SUCH AS HOLDING COMMON STOCKS FOR THEIR HIGHER LONGTERM RETURNS AND KEEPING A CLOSE TAB ON FEES AND TRANSACTION COSTS THAT DRAG DOWN RETURNS DON'T LET A KNEEJERK REACTION TO HIGHER INCOMETAX RATES PROMPT YOU TO DO SOMETHING THAT IS INCONSISTENT WITH YOUR OVERALL STRATEGY SAYS KEVIN ROACH A PARTNER AND FINANCIAL PLANNER WITH ACCOUNTANTS PRICE WATERHOUSE FOR EXAMPLE BEWARE OF MARKETING PITCHES TO SHIFT DOLLARS TO TAXEXEMPT MUNICIPAL BONDS OR OTHER TAXADVANTAGED INVESTMENTS SIMPLY BECAUSE THEY MAY REDUCE TAXES THAT IS JUST STUPID DUMB ADVICE SAYS HAROLD R EVENSKY A FINANCIAL PLANNER IN CORAL GABLES FLA FOCUS ON RETURNS AFTER TAXES NOT WHAT YOU PAY IN TAXES MR EVENSKY EXPLAINS SOME STRATEGIES FOR LEANER TIMES STOCKS FOR THE LONG HAUL THE NEW LAW HAS INCREASED THE TAX APPEAL OF COMMON STOCKS TO UPPERINCOME INVESTORS BY WIDENING THE SPREAD BETWEEN CAPITALGAINS AND ORDINARYINCOME TAX RATES ALTHOUGH THE STOCK MARKET MIGHT LOOK SCARY TO MANY PEOPLE AT CURRENT LEVELS INVESTORS WITH A LONGTERM HORIZON SHOULD GENERALLY SIT TIGHT WITH STOCKS OR EVEN BUY MORE MANY ADVISERS SAY STOCKS HAVE RETURNED ABOUT 10 A YEAR DURING THE PAST SEVERAL DECADES FAR OUTPACING BONDS AND MONEYMARKET INVESTMENTS AND KEEPING HOLDERS WELL AHEAD OF INFLATION MOREOVER TIMING THE MARKET GETTING OUT AT PEAK PRICES AND BACK IN AT THE TROUGH IS NOTORIOUSLY DIFFICULT GO FOR GROWTH MANY INVESTORS HAVEN'T HAD ENOUGH IN GROWTH STOCKS SAYS LYNN HOPEWELL AN INVESTMENT CONSULTANT IN FALLS CHURCH VA FASTGROWING COMPANIES PROVIDE MOST OF THEIR GAINS IN PRICE APPRECIATION RATHER THAN DIVIDENDS WHICH MAKES THEM TAXEFFICIENT FOR LONGTERM INVESTORS OVER THERE TO BOOST DIVERSIFICATION AND RETURNS PUT SOME STOCKMARKET DOLLARS OVERSEAS LOOK TO ASIA AND LATIN AMERICA FOR GOOD GROWTH OPPORTUNITIES SUGGESTS JOHN MARKESE PRESIDENT OF THE AMERICAN ASSOCIATION OF INDIVIDUAL INVESTORS ALSO EUROPEAN ECONOMIES HAVE LAGGED BEHIND THE US IN RECOVERING FROM RECESSION SUGGESTING GOOD STOCKMARKET GAINS STILL LIE AHEAD SEEK SHELTER INVESTORS SHOULD TAKE ADVANTAGE OF TAXDEFERRED VEHICLES SUCH AS EMPLOYERSPONSORED RETIREMENT PLANS INCLUDING 401KS AND PROFITSHARING PLANS BUT BE CAUTIOUS OF VARIABLE ANNUITIES WHICH CAN CHARGE HIGH FEES AND PARTNERSHIPS WHICH CAN BE COSTLY AND ILLIQUID BUY THE MARKET INDEX FUNDS HAVE LOW OPERATING COSTS A BIG ADVANTAGE WHEN RETURNS ARE LAUSE INDEX FUNDS SIMPLY BUY AND HOLD BASKETS OF STOCKS THAT TRACK THE BEHAVIOR OF MARKET INDEXES THEY TEND NOT TO PAY OUT MUCH IN CAPITAL GAINS WHICH DEFERS TAXES FOR HIGHER POTENTIAL RETURNS THERE ARE SMALLSTOCK INDEX FUNDS HIGHOCTANE FUNDS SOME ACTIVE MANAGERS CAN EKE OUT EXTRA GAINS IN DIFFICULT TIMES MAGELLAN'S MR VINIK EXPECTS MANY ACTIVE MANAGERS TO BEAT THE S&P 500 FOR THE NEXT FEW YEARS ALTHOUGH SUCH FUNDS CAN GENERATE HEAVY TAXABLE DISTRIBUTIONS FROM ACTIVE TRADING WITH HIGH ENOUGH RETURNS YOU DON'T MIND PAYING TAXES ON THEM SAYS STATE STREET'S MR SOMES LAST DECADE'S STAR MANAGER HOWEVER MAY BE A DUD IN THE FUTURE DO IT YOURSELF BUYING INDIVIDUAL STOCKS DIRECTLY CAN GIVE INVESTORS A LEG UP ON TAXES INVESTORS HAVE MORE CONTROL IN OFFSETTING GAINS AND LOSSES AND PAY NO TAX ON PRICE APPRECIATION UNTIL THEY SELL THE SHARES THERE'S NO GAINS TAX AT ALL ON SHARES THAT PASS TO HEIRS AT DEATH BEWARE THE TAX ON TRADING AFFLUENT INVESTORS WHO ACTIVELY TRADE INDIVIDUAL STOCKS OR MUTUAL FUNDS COULD BE IN FOR A RUDE SURPRISE WHILE GAINS ON STOCKS HELD FOR MORE THAN A YEAR ARE TAXED AT A MAXIMUM 28 SHORTTERM GAINS NOT OFFSET BY LOSSES ARE TAXED AT HIGHER ORDINARYINCOME RATES DO YOUR MUNI MATH INVESTORS SUBJECT TO THE NEW 36 AND 396 TAX RATES WILL GENERALLY FIND TAXEXEMPT MUNICIPALS BEAT THE AFTERTAX RETURN ON TAXABLE BONDS AT JUST ABOUT EVERY MATURITY WITHIN THE VANGUARD MUTUAL FUND GROUP A HIGHBRACKET INVESTOR MIGHT SHIFT FROM THE TAXABLE BOND INDEX FUND WITH AN AVERAGE MATURITY OF AROUND NINE YEARS TO THE MUNICIPAL INTERMEDIATE PORTFOLIO WITH AN EIGHTYEAR AVERAGE MATURITY THE TAXABLE FUND'S YIELD OF 571 IS EQUAL TO A 348 YIELD AFTER TAX AT THE 396 RATE THE MUNICIPAL FUND IS YIELDING 472 THAT'S ABOUT A 250 DIFFERENCE IN ANNUAL INCOME ON A 20000 INVESTMENT ASSUMING YIELDS REMAIN AT CURRENT LEVELS BUT NOTE THAT THE MUNICIPAL ADVANTAGE IS GENERALLY SMALLER AT THE SHORTEST MATURITIES CHECK THE MATH AND WEIGH ANY TRANSACTION COSTS AND QUALITY DIFFERENCES BEFORE YOU MOVE YOUR MONEY BE WARY OF LONG BONDS SOME INVESTORS SHIFTING INTO MUNICIPALS MAY UNWITTINGLY END UP WITH LONGER MATURITIES THAN ARE APPROPRIATE FOR THEM LONGTERM BONDS YIELD THE MOST BUT STAND TO LOSE THE MOST IF INTEREST RATES RISE TO MINIMIZE INTERESTRATE RISK PARTICULARLY AT A TIME WHEN SOME RATES ARE HITTING 20YEAR LOWS MANY ADVISERS SUGGEST STICKING TO BONDS THAT MATURE IN 10 YEARS OR LESS TO MOVE 50000 FROM CERTIFICATES OF DEPOSIT TO A 50000 MUNICIPAL BOND MATURING IN 2025 IS ABSURD SAYS MALCOLM A MAKIN A WESTERLY RI FINANCIAL PLANNER BUT THERE WILL BE PEOPLE WHO WILL DO THAT 9308260007 930826 FOREIGN EXCHANGE DOLLAR POSTS ADVANCE ON MARK OTHER CURRENCIES HOLDS GAINS AGAINST YEN BY ALLISON BISBEY SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR GAINED AGAINST THE MARK AND OTHER EUROPEAN CURRENCIES AMID INCREASING SPECULATION THAT GERMANY'S CENTRAL BANK WILL CUT ITS DISCOUNT RATE AT ITS POLICYMAKING COUNCIL MEETING THURSDAY THE DOLLAR STRENGTHENED AGAINST THE YEN HOLDING GAINS MADE DURING A RUMORDRIVEN ASIAN TRADING SESSION WHICH ALSO HAD REPORTS OF MORE INTERVENTION BY THE BANK OF JAPAN TO DEPRESS THE YEN'S VALUE LATE WEDNESDAY IN NEW YORK THE DOLLAR WAS QUOTED AT 16848 MARKS UP FROM 16790 MARKS LATE TUESDAY THE US CURRENCY ALSO WAS CHANGING HANDS AT 10495 YEN UP FROM 10375 YEN STERLING WAS TRADING AT 14820 DOWN FROM 14985 LATE TUESDAY ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10547 YEN AND AT 16849 MARKS REPORTS SHOWING UNEXPECTEDLY LOW INFLATION IN THREE OF THE LARGEST WESTERN GERMAN STATES FED EXPECTATIONS OF A GERMAN RATE CUT AT THURSDAY'S BUNDESBANK MEETING DEALERS SAID THE CONSUMER PRICE INDEX IN THE STATE OF NORTH RHINE WESTPHALIA WAS UNCHANGED IN AUGUST FROM JULY AND ROSE 4 FOR THE YEAR IN HESSE THE INDEX ALSO WAS UNCHANGED FOR THE MONTH AND UP 42 IN THE YEAR IN BAVARIA THE INDEX FELL 01 IN AUGUST AND WAS UP 4 FOR THE YEAR THE INFLATION DATA WERE GENERALLY BETTER THAN EXPECTED ESPECIALLY AFTER THE STATE OF BADENWUERTTEMBERG ANOTHER LARGE WESTERN GERMAN STATE REPORTED TUESDAY THAT ITS CONSUMER PRICE INDEX ROSE AT A FASTERTHANEXPECTED 43 ANNUAL RATE THE BUNDESBANK'S POLICYMAKING COUNCIL MEETS THURSDAY FOR THE FIRST TIME SINCE ITS SUMMER RECESS CURRENTLY THE KEY DISCOUNT RATE STANDS AT 675 TRADERS SAID THE MARKET WAS LOOKING FOR A DISCOUNTRATE CUT OF 25TO50 BASIS POINTS MAINLY FOR TECHNICAL REASONS ALTHOUGH THE DISCOUNT RATE IS SUPPOSED TO ACT AS A FLOOR FOR GERMAN MONEYMARKET RATES DAYTODAY RATES HAVE FALLEN CLOSE TO AND SOMETIMES BELOW THE DISCOUNT RATE THIS IS IN PART BECAUSE OF THE LIQUIDITY GENERATED BY THE RECENT CRISIS IN THE EUROPEAN EXCHANGE RATE MECHANISM OR ERM WHEN EUROPEAN CENTRAL BANKS SOLD LARGE AMOUNTS OF MARKS TO SUPPORT THEIR CURRENCIES AS A RESULT THE BUNDESBANK HAS LITTLE ROOM TO PUSH MONEYMARKET RATES LOWER AT ITS WEEKLY REPURCHASING OPERATIONS A LOWER DISCOUNT RATE WOULD GIVE THE BUNDESBANK MORE FLEXIBILITY IN ITS REPO ACTIONS IN THE PAST THE CENTRAL BANK HAS SAID THAT INFLATION AND MONEYSUPPLY GROWTH MUST BE RESTRAINED BEFORE RATES COULD BE LOWERED PARTICIPANTS THEREFORE TOOK WEDNESDAY'S INFLATION DATA AS AN ENCOURAGING SIGN DEALERS SAID THE GERMAN INFLATION DATA HAVEN'T ALTERED THE MARKET'S FORECAST OF A CUT OF 25TO50 BASIS POINTS IN THE DISCOUNT RATE AND ADDED THAT NOW THERE IS A GREATER CONSENSUS THAT RATES WILL BE CUT ON THURSDAY THE MODEST RISE IN THE GERMAN STATES' COST OF LIVING BROUGHT MORE PEOPLE IN LINE WITH THE THINKING THAT THERE WILL BE A CUT OF UP TO ONEHALF PERCENTAGE POINT SAID CARL FORCHESKI A TRADER AT CHEMICAL BANK PARTICIPANTS ARE BETTING THAT IF GERMANY CUTS ITS DISCOUNT RATE OTHER COUNTRIES IN THE ERM WILL FOLLOW MAKING THE DOLLAR MORE ATTRACTIVE IN COMPARISON LOWER INTEREST RATES GENERALLY DECREASE A CURRENCY'S ATTRACTIVENESS BY DECREASING THE RETURN ON INVESTMENTS MADE IN THAT CURRENCY 9308260006 930826 PROMUS TO OPERATE NEW ORLEANS CASINO IN 3WAY EQUITY PACT NEW ORLEANS THE PROMUS COS AND A GROUP OF LOUISIANA BUSINESSMEN REACHED A TENTATIVE COMPROMISE ON A CASINO PROJECT IN NEW ORLEANS AGREEING TO A THREEWAY EQUITY SPLIT WITH A GROUP LED BY DEVELOPER CHRISTOPHER HEMMETER FOR THE STATE'S ONLY LANDBASED CASINO UNDER THE AGREEMENT EACH PARTY WILL HOLD A 33 EQUITY STAKE IN THE PROJECT WITH MR HEMMETER OVERSEEING THE CASINO'S DESIGN AND CONSTRUCTION AND PROMUS'S HARRAH'S CASINO SUBSIDIARY OPERATING THE FACILITY THE AGREEMENT SHUTS OUT CAESARS WORLD INC WHICH ORIGINALLY HAD TEAMED UP WITH MR HEMMETER TO MANAGE THE COMPLEX THE COMPROMISE IS THE LATEST STEP IN THE COMPLEX NEGOTIATIONS OVER THE CASINO THE CITY OF NEW ORLEANS HAD GRANTED THE HEMMETERCAESARS PARTNERSHIP THE LEASE TO THE RIVERGATE CONVENTION CENTER THE CITYOWNED FACILITY DESIGNATED AS THE CASINO SITE BUT ON AUG 11 STATE REGULATORS SURPRISED MANY OBSERVERS BY SELECTING PROMUS IN MEMPHIS TENN AND ITS PARTNERS A GROUP OF 10 LOCAL BUSINESSMEN LED BY LAWYER WENDELL GAUTHIER TO OWN AND OPERATE THE COMPLEX THE AGREEMENT WAS ANNOUNCED AFTER THE CLOSE OF TRADING WHERE PROMUS'S STOCK FELL 875 CENTS TO CLOSE AT 66 A SHARE AND CAESARS' STOCK FELL 625 CENTS TO CLOSE AT 46 A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE TOM MORGAN A HARRAH'S VICE PRESIDENT SAID THE NEW PARTNERS MUST NEGOTIATE A NEW SITE LEASE WITH THE CITY AND OBTAIN GAMBLING LICENSES FROM THE STATE THE PARTNERS NOW EXPECT TO RAZE THE RIVERGATE SITE AND ERECT A NEW CASINO COMPLEX WITH 150000 SQUARE FEET OF GAMBLING SPACE MAKING IT THE WORLD'S LARGEST CASINO THE PARTNERS ALSO PLAN TO OPEN A TEMPORARY CASINO ON THE SITE OF NEW ORLEANS'S MUNICIPAL AUDITORIUM THE FACILITY COULD OPEN AS EARLY AS DECEMBER OR JANUARY THE GROUP SAID AND IS EXPECTED TO INCLUDE 100000 SQUARE FEET OF CASINO SPACE IF ALL THE REGULATORY APPROVALS ARE WON PROMPTLY THE PERMANENT CASINO COULD BE OPEN BY MID1995 MR MORGAN SAID THE PARTNERS HAVE NOT YET WORKED OUT FINANCING DETAILS A FINAL BUDGET OR THE AMOUNT OF TAXES OR OTHER PAYMENTS TO BE MADE TO THE STATE HE ADDED 9308260005 930826 WHAT'S NEWS BUSINESS AND FINANCE THE US IMPOSED ON CHINA A PACKAGE OF TRADE SANCTIONS BUT THE LIMITED ACTIONS DON'T IMMEDIATELY JEOPARDIZE US BUSINESS PLANS TO CASH IN ON CHINA'S ECONOMIC BOOM THE MOVE AGAINST CHINA WHICH IS ACCUSED OF SELLING MISSILE AND OTHER WEAPONS TECHNOLOGY TO PAKISTAN MAINLY BLOCKS THE TRANSFER OF USMADE EQUIPMENT USED IN SATELLITES THAT THE US EITHER SELLS OR SENDS TO CHINA FOR LAUNCHES AN INFLUENTIAL ACCOUNTING GROUP IS EXPECTED TO CALL FOR A SHARP INCREASE IN THE AMOUNT OF INFORMATION COMPANIES MUST DISCLOSE IN THEIR ANNUAL REPORTS A PROSPECT THAT IS ALREADY ALARMING CORPORATE FINANCIAL OFFICERS ORDERS FOR DURABLE GOODS FELL 38 IN JULY THE FIFTH DROP SINCE FEBRUARY AFTER RISING A REVISED 45 IN JUNE THE DECLINE WAS LARGELY DUE TO AN 18 DECREASE IN TRANSPORTATION BOOKINGS EXISTINGHOME SALES SURGED 54 LAST MONTH AS LOW INTEREST RATES BOOSTED A HOUSING RECOVERY THAT IS NOW ROBUST IN MOST PARTS OF THE COUNTRY FORD PRESENTED THE UAW WITH AN OUTLINE FOR A NEW LABOR CONTRACT BUT GM INDICATED IT WON'T FOLLOW SUIT THIS WEEK LESSENING ITS CHANCES OF SETTING THE PATTERN FOR THIS YEAR'S LABOR TALKS THE DOW JONES INDUSTRIALS ROSE 1313 POINTS TO A RECORD 365209 THE PRICE OF THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN 3/8 POINT ITS YIELD FELL TO 616 A 16YEAR LOW AIR FARES ON SHORT ROUTES HAVE BEEN FALLING IN RECENT MONTHS SOME BY AS MUCH AS 50 AND IT PROBABLY WILL BE AWHILE BEFORE THEY STOP DROPPING CBS APPEARED TO HAVE GIVEN UP ITS STRUGGLE TO FORCE MAJOR CABLE TV OPERATORS TO PAY NEW FEES FOR AIRING PROGRAMMING OF CBSOWNED STATIONS VW'S LOPEZ SAID HE SUPERVISED THE SHREDDING OF GM DOCUMENTS IN THE DAYS FOLLOWING REQUESTS FROM GM THAT SUCH MATERIALS BE RETURNED BUT THE FORMER GM PURCHASING CHIEF SAID THE DOCUMENTS WERE ERRONEOUSLY INCLUDED IN BOXES OF PERSONAL PAPERS THAT HE ASKED A GM WORKER TO PACK FOR HIM COMPAQ COMPUTER PLANS TO UNVEIL TODAY TWO PERSONAL COMPUTERS FOR HOME USE JOINING OTHER BIG PC MAKERS THAT ARE PROMOTING NONBUSINESS COMPUTERS THAT ARE EASY TO USE BRITAIN'S RTZ AGREED TO SELL MOST OF ITS RTZ PILLAR INDUSTRIALPRODUCTS GROUP TO MBCARADON FOR 12 BILLION CARL ICAHN'S PLANNED RESTRUCTURING OF ACF INDUSTRIES IS BEING SCRUTINIZED BY A PENSION AGENCY APPARENTLY SIGNALING A RENEWED INTEREST IN WASHINGTON IN PREVENTING CORPORATIONS FROM ESCAPING THEIR PENSION OBLIGATIONS ALLIEDSIGNAL IS EXPLORING MERGING ITS COMMERCIAL AVIONICS BUSINESS WITH FRANCE'S SEXTANT AVIONIQUE GLORIA HAFT FAILED TO PERSUADE A JUDGE TO BAR HER HUSBAND DART'S HERBERT HAFT FROM CHANGING CONTROLLING OWNERSHIP OF THE FAMILY BUSINESSES PRICE WATERHOUSE'S THREEYEAR CONTRACT TO AUDIT ITALIAN AGROCHEMICAL FIRM FERRUZZI WAS REVOKED BY ITALY'S STOCK MARKET REGULATORY AGENCY TOYOTA'S PRETAX PROFIT FELL 25 IN THE LATEST YEAR REFLECTING SLOW AUTO SALES AND THE STRONG VALUE OF THE YEN BUT ANALYSTS SAID THE JAPANESE CAR MAKER AVOIDED A POTENTIALLY BIGGER DECLINE BY AGGRESSIVELY CUTTING COSTS BONDS LEHMAN BROTHERS TREASURY INDEX 554331 UP 4072 COMMODITIES OIL 1832 A BARREL OFF THREE CENTS DOW JONES FUTURES INDEX 12670 UP 095 SPOT INDEX 12298 UP 015 DOLLAR 10495 YEN UP 120 16848 MARKS UP 00058 9308260004 930826 ECONOMY EXISTINGHOME SALES ROSE 54 IN JULY AS LOW RATES FUELED HOUSING REBOUND BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL SALES OF PREVIOUSLY OWNED HOMES SURGED 54 IN JULY AS LOW INTEREST RATES BOOSTED A HOUSING RECOVERY THAT IS NOW ROBUST IN MOST PARTS OF THE COUNTRY SINGLEFAMILY EXISTINGHOME SALES ROSE TO 39 MILLION ON A SEASONALLY ADJUSTED ANNUALIZED BASIS FROM A REVISED PACE OF 37 MILLION IN JUNE ACCORDING TO THE NATIONAL ASSOCIATION OF REALTORS ALL REGIONS EXCEPT THE STILLWEAK NORTHEAST POSTED MONTHOVERMONTH GAINS THE SALES INCREASE EQUAL TO ABOUT 15 COMPARED WITH THE SAME MONTH A YEAR AGO WAS THE BIGGEST SINCE DECEMBER AND MARKED THE FOURTH STRAIGHT MONTH OF GAINS AFTER THREE CONSECUTIVE DECLINES THAT ANALYSTS ATTRIBUTED LARGELY TO BAD WEATHER IN MANY PARTS OF THE COUNTRY I THINK THE HOUSING MARKET IS VIGOROUS AND WILL REMAIN THAT WAY FOR THE REST OF THE YEAR SAID JOHN A TUCCILLO CHIEF ECONOMIST FOR THE WASHINGTON DCBASED REALTORS' TRADE GROUP SOME ECONOMISTS HAVE CHARACTERIZED THE HOUSING RECOVERY AS DISAPPOINTING OR MODEST BECAUSE OVERALL GROWTH HASN'T BEEN AS SHARP AS IN PREVIOUS RECOVERIES THEY ARE OVERLOOKING REGIONAL VARIATIONS BOTH SALES AND HOUSING STARTS ARE REMARKABLY STRONG CONSIDERING THAT THE RECESSIONRAVAGED CALIFORNIA MARKET HAS REMAINED LARGELY ON THE SIDELINES THROUGH THE RECOVERY THE SALES PACE OF 39 MILLION IN FACT IS QUITE ROBUST AND IN HEALTHIER MARKETS BETWEEN THE COASTS HOUSING ACTIVITY IS INDEED BOOMING THOUGH HOUSING STARTS AS A WHOLE HAVE PERFORMED ERRATICALLY IN RECENT MONTHS THE SINGLEFAMILY STARTS ARE RUNNING AT AN ANNUALIZED LEVEL OF MORE THAN ONE MILLION AS THEY DID DURING THE ROARING 1980S THE STARTS WOULD BE EVEN STRONGER MR TUCCILLO SAID IF IT WEREN'T FOR THE FACT THAT MANY BUILDERS STILL HAVE TROUBLE OBTAINING BANK FINANCING TO ACQUIRE LAND AND CONSTRUCT HOMES FUELING THE FRENETIC SALES PACE IS THE IRRESISTIBLE LURE OF 30YEAR FIXEDRATE MORTGAGES THAT HAVE PLUNGED TO NEAR 7 AND ARE LIKELY TO REMAIN LOW FOR MANY MORE MONTHS THIS PORTENDS WELL FOR HOUSING AS EVIDENCED BY A WEEKLY INDEX OF VOLUME BY THE MORTGAGE BANKERS ASSOCIATION OF AMERICA THAT SHOWS HOMELOAN APPLICATIONS RUNNING AT 70 ABOVE NORMAL VOLUME THE INDEX REFLECTS NEWLY OPENED TRANSACTIONS THAT TAKE UP TO TWO MONTHS TO COMPLETE THAT SUGGESTS THERE WILL BE EVEN MORE SALES SAID DAVID LEREAH CHIEF ECONOMIST FOR THE MORTGAGE ASSOCIATION IF THE ECONOMY PICKS UP ACTIVITY AS I PROJECT IT SHOULD BE A GREAT ENVIRONMENT FOR HOUSING DAVID F SEIDERS CHIEF ECONOMIST FOR THE NATIONAL ASSOCIATION OF HOME BUILDERS NOTES THAT CONSUMER CONFIDENCE IS STILL SHAKY AROUND THE COUNTRY BECAUSE OF ANEMIC JOB GROWTH AND THAT SALES ARE BEING PROPPED UP BY LOWER INTEREST RATES OUR BASIC READING OF THE MARKET IS THANK GOD FOR THE AFFORDABILITY CONDITIONS' BECAUSE THE CONDITION OF CONSUMER SENTIMENT IS STILL AWFULLY DARN BAD MR SEIDERS SAID EVEN THE HARDESTHIT MARKETS ARE STARTING TO BOUNCE BACK AT LEAST IN THE ENTRYLEVEL SEGMENT OF HOMES THAT FIRSTTIME BUYERS CAN MOST AFFORD FOR THE GOLDEN STATE THE CALIFORNIA ASSOCIATION OF REALTORS SAID RESALES JUMPED 82 FROM JUNE FOR THE FIRST BACKTOBACK MONTHLY INCREASES SINCE DECEMBER EVEN THOUGH SALES IN THE NORTHEAST FELL 17 IN JULY FROM THE PREVIOUS MONTH THEY WERE NEARLY 8 AHEAD OF THE SAME TIME LAST YEAR THE REAL HOUSING STORY THOUGH IS BETWEEN THE COASTS AS AN INDICATION ELECTRONIC REALTY ASSOCIATES LP AN OVERLAND PARK KANBASED BROKERAGE FIRM WITH A BIG PRESENCE IN THE MIDWEST REPORTS THAT ITS JULY SALES SOARED AS MUCH AS 35 FROM A YEAR AGO THE INTEREST RATES ARE MAKING HOUSING AFFORDABLE FOR PEOPLE WHO HAD RULED IT OUT SAID MAC HEAVENER PRESIDENT OF THE BROKERAGE FIRM WHICH HAS MORE THAN 2000 OFFICES NATIONWIDE IN THE SOUTH WITH ITS VAST TRACTS OF AFFORDABLE HOUSING JULY RESALES SOARED ABOUT 18 FROM THE YEARAGO PACE THE MIDWEST WAS ALSO ROBUST DESPITE THE FLOODS AND POSTED A 14 INCREASE OVER THE YEAREARLIER PERIOD POWERED BY A RESURGENCE IN SALES OF AFFORDABLE HOMES IN CALIFORNIA AS WELL AS BY BOOMING MARKETS SUCH AS PHOENIX AND DENVER RESALES IN THE WEST WERE UP NEARLY 16 FROM LAST YEAR WITH DEMAND HEATING UP PRICES ARE RISING AS WELL LAST MONTH'S NATIONAL MEDIAN PRICE FOR AN EXISTING SINGLEFAMILY HOME ROSE 62 TO 109200 FROM 102800 A YEAR AGO PRICES ARE STILL FALLING IN CALIFORNIA HOWEVER 9308260003 930826 COMMODITIES LUMBER FUTURES SURGE TO LIMIT FOR SECOND DAY AS BUILDERS YARDS COMPETE FOR WOOD SUPPLIES BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL LUMBER FUTURES PRICES HIT THE DAILY LIMIT FOR THE SECOND CONSECUTIVE DAY AS CONSTRUCTION COMPANIES AND LUMBERYARDS COMPETED FOR LIMITED SUPPLIES OF WOOD AT THE CHICAGO MERCANTILE EXCHANGE LUMBER FOR SEPTEMBER DELIVERY WAS UP 10 TO 28130 PER THOUSAND BOARD FEET TODAY THE DAILY LIMIT FOR FUTURESPRICE MOVEMENTS INCREASES TO 15 PER THOUSAND BOARD FEET FROM 10 FEW ANALYSTS THINK THE TWODAY PRICE SURGE AT THE MERC IS A HARBINGER OF THE KIND OF WILD UPWARD PRICE SWING THAT OCCURRED IN THE LUMBER MARKET LAST SPRING BUT FOR VARIOUS REASONS THEY SAY LUMBER PRICES COULD CONTINUE TO RISE OVER THE NEXT COUPLE OF MONTHS MANY LUMBER WHOLESALERS ASSUMED THAT WHEN A RECENT STRIKE AT BRITISH COLUMBIA RAILROAD ENDED IT WOULD MEAN SHIPMENT OF AMPLE WOOD SUPPLIES TO THE US THUS PEOPLE HAVEN'T BEEN VERY GOOD ABOUT BUYING WOOD IN ADVANCE SAID BUD MERRILL LUMBER ANALYST FOR SMITH BARNEY SHEARSON INC HOWEVER SUPPLIES OF LUMBER ON THE CASH MARKET HAVE BEEN TIGHTER THAN EXPECTED AND THE END OF THE STRIKE DIDN'T CHANGE THE FLOW OF WOOD APPRECIABLY MR MERRILL SAID SO NOW LUMBERYARDS ARE SCRAMBLING TO GET THE WOOD THEY NEED THIS CASHMARKET ACTIVITY HAS PROMPTED TRADERS AT THE MERC TO COVER THEIR SHORT POSITIONS OR WAGERS THAT PRICES WOULD CONTINUE TO FALL BY BUYING FUTURES CONTRACTS SUCH BUYING EXERTS UPWARD PRESSURE ON PRICES ANOTHER FACTOR SUPPORTING THE LUMBER MARKET IS THE STRENGTH OF BOND PRICES AND THE WEAKNESS OF INTEREST RATES THE PROSPECT OF EVENLOWER HOME MORTGAGE RATES COULD SPUR THE US HOUSING INDUSTRY TO BUILD MORE HOMES AND USE MORE LUMBER ANALYSTS SAY FUTURES TRADERS ALSO ARE ANTICIPATING A SURGE IN BUILDING IN THE MIDWEST AS TOWNS REBUILD STRUCTURES DESTROYED BY FLOODING SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH & CO LAST WEEK A DISAPPOINTING REPORT FROM THE COMMERCE DEPARTMENT THAT US HOUSING STARTS WERE DOWN 27 TEMPORARILY STALLED THE LUMBER MARKET BUT BECAUSE THE PACE OF CONSTRUCTION NOW SEEMS LIKELY TO INCREASE STRONG DEMAND FOR LUMBER SHOULD ALLOW PRICES TO TREND GRADUALLY HIGHER MR O'NEILL SAID IN OTHER COMMODITY MARKETS YESTERDAY ENERGY PETROLEUM FUTURES PRICES OPENED HIGHER ON A BULLISH INDUSTRY REPORT ON US OIL INVENTORIES BUT FAILED TO HOLD THE GAINS AT THE CLOSE CRUDE OIL FOR OCTOBER DELIVERY WAS DOWN ONLY MODESTLY THREE CENTS A BARREL TO SETTLE AT 1832 ON THE NEW YORK MERCANTILE EXCHANGE BUT UNLEADED GASOLINE FUTURES DROPPED RELATIVELY MORE WITH THE SEPTEMBER CONTRACT FALLING 055 CENT A GALLON TO 5325 CENTS GASOLINE AND CRUDE OIL HAD BEEN EXPECTED TO STRENGTHEN YESTERDAY AFTER THE AMERICAN PETROLEUM INSTITUTE'S WEEKLY REPORT WAS RELEASED LATE TUESDAY THE REPORT SHOWED THAT INVENTORIES OF GASOLINE AND CRUDE OIL DECLINED LAST WEEK BY 47 MILLION AND 49 MILLION BARRELS RESPECTIVELY THERE WAS LITTLE OTHER NEWS TO AFFECT THE OIL MARKET YESTERDAY AND THE API REPORT ALONE WASN'T ENOUGH TO MAINTAIN PRICING MOMENTUM PRECIOUS METALS GOLD FUTURES PRICES ROSE MODERATELY REBOUNDING FROM SELLING PRESSURE EARLIER IN THE DAY ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR DECEMBER DELIVERY EDGED UP 60 CENTS TO 37550 AN OUNCE WE ARE IN THE SUMMER DOLDRUMS SAID GEORGE MILLINGSTANLEY AN ANALYST WITH LEHMAN BROTHERS WE'RE NOW IN A 370380 TRADING RANGE AND THE MARKET IS FINDING IT DIFFICULT TO BREAK OUT OF THIS HE SAID ADDING THAT HE DOESN'T EXPECT TO SEE REAL MOVEMENT RETURN TO GOLD PRICES IN EITHER DIRECTION UNTIL WELL PAST LABOR DAY DEMAND FOR GOLD FROM JEWELERS IN EUROPE AND THE FAR EAST TRADITIONALLY PICKS UP IN THE FALL MR MILLING STANLEY SAID BERNARD SAVAIKO A SENIOR METALS ANALYST WITH PAINEWEBBER INC SAID THE FAR EAST'S APPETITE FOR GOLD IS SHOWING MORE SIGNS OF DECLINING SURGING CHINESE DEMAND FOR GOLD WAS BROADLY CITED BY ANALYSTS AS A KEY FACTOR BEHIND GOLD'S 15 RALLY THIS YEAR MANY ANALYSTS NOW ARE CONVINCED THAT CHINESE DEMAND FOR GOLD AT PRICES ABOVE 370 HAS SLACKENED CONSIDERABLY KEEPING DOWNWARD PRESSURE ON THE OVERALL MARKET THE FUTURE DIRECTION OF THE MARKET THEY SAID LARGELY DEPENDS ON WHETHER THE CHINESE BUYING REEMERGES IN THE CURRENT TRADING RANGE COPPER FUTURES PRICES TUMBLED IN A VOLATILE SESSION ON NEW YORK'S COMMODITY EXCHANGE COPPER FOR SEPTEMBER DELIVERY FELL 135 CENTS TO 8505 CENTS A POUND FOLLOWING TUESDAY'S MODEST 020 CENT INCREASE THE MARKET IS STARTING TO FOCUS ON BEARISH FUNDAMENTALS SAID MR SAVAIKO REFERRING TO TEPID DEMAND FOR THE BASE METAL AMID WEAK ECONOMIC ACTIVITY IN THE LEADING INDUSTRIAL NATIONS COPPER DEMAND FROM EUROPE AND THE FAR EAST HAS BEEN PARTICULARLY WEAK TRADERS SAID A REBOUND IN THE JAPANESE ECONOMY WHOSE AUTO INDUSTRY IS A MAJOR CONSUMER OF COPPER IS PROBABLY NECESSARY FOR ANY SUSTAINED INCREASE IN COPPER PRICES 9308260002 930826 INTERNATIONAL STORA MO & DOMSJOE RESULTS IMPROVED DURING THE FIRST HALF SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM TWO SWEDISH PULP AND PAPER GIANTS STORA KOPPARBERGS BERGSLAGS AB AND MO & DOMSJOE AB REPORTED IMPROVED FIRSTHALF RESULTS SUGGESTING THAT THE COUNTRY'S POWERFUL FORESTRY INDUSTRY APPEARS TO HAVE PASSED THE BOTTOM OF THE DEEPEST DOWNTURN IN DECADES STORA EUROPE'S BIGGEST PULP AND PAPER COMPANY REBOUNDED TO SECONDQUARTER PRETAX PROFIT OF 90 MILLION SWEDISH KRONOR 112 MILLION FROM A YEAREARLIER PRETAX LOSS OF 301 MILLION KRONOR FOR THE FIRST HALF THE COMPANY POSTED PRETAX PROFIT OF 30 MILLION KRONOR REVERSING A PRETAX LOSS OF 163 MILLION KRONOR THE PREVIOUS YEAR FIRSTHALF SALES ROSE 42 TO 2527 BILLION KRONOR ADJUSTED FOR ACQUISITIONS AND DIVESTMENTS THE INCREASE WAS ACTUALLY 6 STORA DIDN'T ISSUE A FULL YEAR PROFIT FORECAST OFFICIALS CAUTIONED THAT MARKET CONDITIONS REMAIN DEPRESSED AND DEMAND FOR STORA'S PRODUCTS WILL BE LITTLE CHANGED FROM 1992 LAST YEAR STORA REPORTED A PRETAX LOSS OF 112 BILLION KRONOR STORA SAID LOWER INTEREST RATES TRIMMED DEBTSERVICE COSTS THE COMPANY ALSO SAW SOME HEFTY TRADING PROFITS AMID VOLATILE CURRENCY MARKETS AT MODO MEANWHILE THE SWEDISH KRONA'S DEPRECIATION COMBINED WITH TOUGH COSTCUTTING MEASURES HELPED NARROW THE COMPANY'S FIRSTHALF PRETAX LOSS TO 353 MILLION KRONOR FROM 518 MILLION KRONOR THE PREVIOUS YEAR MODO CHIEF EXECUTIVE BERNT LOEF CONCEDED THE COMPANY WILL REMAIN IN THE RED FOR THE FULL YEAR BUT HE ALSO ARGUED THAT IMPROVED DEMAND AND SLIGHTLY HIGHER PRICES FOR NEWSPRINT HINT THAT THE COMPANY MAY HAVE SEEN THE BOTTOM OF THE CYCLE 9308260001 930826 MARKETING & MEDIA FOUR FIRMS UNVEIL NEW VIDEO FORMAT BASED ON 5INCH CD SPECIAL TO THE WALL STREET JOURNAL TOKYO FOUR MAJOR ELECTRONICS COMPANIES ESTABLISHED A NEW COMPACTDISK FORMAT THAT ALLOWS UP TO 74 MINUTES OF VIDEO TO BE STORED ON A STANDARD FIVEINCH CD THE FORMAT CALLED VIDEO CD WILL BE USED FOR MOVIES KARAOKE MUSIC VIDEOS AND EDUCATIONAL MATERIAL THE COMPANIES SAID THE FOUR MATSUSHITA ELECTRIC INDUSTRIAL CO SONY CORP VICTOR CO OF JAPAN KNOWN AS JVC IN THE US AND PHILIPS ELECTRONICS NV SAID THE VIDEO CD FORMAT IS PLAYABLE ON A RANGE OF EQUIPMENT INCLUDING VIDEO CD PLAYERS PHILIPS'S COMPACTDISK INTERACTIVE OR CDI PLAYERS PERSONAL COMPUTERS EQUIPPED WITH CDROM DRIVES AND CD PLAYERS THAT HAVE DIGITAL OUTPUTS AND AN ADDON VIDEO ADAPTER IN JUNE A GROUP OF CONSUMERELECTRONICS COMPANIES SAID THEY WOULD SUPPORT A STANDARD FOR BRINGING FEATURE MOVIES TO FIVEINCH CDS GIVING A SHOT IN THE ARM TO PHILIPS'S CDI FORMAT YESTERDAY'S ANNOUNCEMENT IS THE RESULT OF THAT PLEDGE PHILIPS PREVIOUSLY STRUCK A DEAL WITH ENTERTAINMENT COMPANY PARAMOUNT COMMUNICATIONS INC TO PUT HIT MOVIES SUCH AS TOP GUN ON FIVEINCH DISKS BOTH SONY AND MATSUSHITA HAVE ACCESS TO HUGE MOVIE LIBRARIES AND ARE LIKELY TO BEGIN RELEASING THEM IN THE NEW FORMAT SONY OWNS THE COLUMBIA AND TRISTAR PICTURES MOVIE STUDIOS WHILE MATSUSHITA OWNS MCA INC SONY PLANS TO OFFER ITS FIRST VIDEO CD PRODUCT IN MID1994 THE FORMAT HAS ITS DRAWBACKS WITH A 74MINUTE CAPACITY MOST MOVIES WOULD NEED TO BE ON TWO DISKS ALSO PICTURE QUALITY ISN'T AS SHARP AS THAT OF A LASERDISC ANOTHER VIDEO FORMAT HOWEVER THE COMPANIES TOUT THE SMALL SIZE OF THE VIDEO CD AS AN ADVANTAGE 9308260135 930726 BEYOND WASHINGTON MIDDLE AMERICA IN CLINTON'S FIRST YEAR TO END AN IMPASSE WORKERS AT CATERPILLAR HOPE AGAINST HOPE CLINTON WILL BE TRUE HE PROMISED TO PROTECT JOBS OF WORKERS WHO STRIKE BUT THAT WON'T BE EASY HELD HOSTAGE IN EAST PEORIA BY DENNIS FARNEY STAFF REPORTER OF THE WALL STREET JOURNAL EAST PEORIA ILL A HOSTAGE TO FATE UNITED AUTO WORKERS LOCAL 974 PRESIDENT JERRY BROWN PERCHES ON A TRAPDOOR SEAT AS FELLOW UNIONISTS HURLING BASEBALLS REPEATEDLY DROP HIM INTO A DUNKING TANK BESIDE HIM IS A BRAVE PLACARD I'M STICKING WITH THE UNION THIS SCENE FROM A UAW BARBECUE APTLY SYMBOLIZES THE SITUATION OF BLUECOLLAR WORKING FAMILIES HERE IN EAST PEORIA THE SITE OF ONE OF THE MOST GUTWRENCHING LABORMANAGEMENT CONFRONTATIONS OF RECENT DECADES THEY ARE HOSTAGES TOO HOSTAGES TO THEIR COMPANY CATERPILLAR INC THE BIG MAKER OF EARTHMOVING AND CONSTRUCTION MACHINERY WHICH BROKE A UAW STRIKE LAST YEAR BY THREATENING TO HIRE PERMANENT REPLACEMENT WORKERS HOSTAGES TO THEIR UNION AND ITS ILLFATED DECISION TO STRIKE IN THE FIRST PLACE AND HOSTAGES ULTIMATELY TO THE INTENSIFYING COMPETITION OF A WORLD ECONOMY WITH ITS DOWNWARD PRESSURE ON US MANUFACTURING WAGES AND BENEFITS THEY WANT HELP FROM A FRIEND WHO WALKED THE PICKET LINE WITH THEM LAST YEAR BILL CLINTON AND THEY WANT IT FAST I WANT ACTION SAYS AN ANXIOUS JOYCE GIBSON THE 50YEAROLD WIFE OF A UAW WORKER AT CATERPILLAR OUR LIVES ARE DANGLING OUT HERE THE WORKERS' DEMANDS AS SPECIFIC AS A CONTRACT PROPOSAL RANGE FROM THE DIFFICULT TO THE NEARIMPOSSIBLE THE DIFFICULT IS ENACTMENT OF THEIR TOPPRIORITY LEGISLATION WHICH WOULD BAR COMPANIES FROM HIRING PERMANENT REPLACEMENTS FOR STRIKING WORKERS PRESIDENT CLINTON HAS PLEDGED TO SIGN IT IF CONGRESS PASSES THE BILL BUT THE MEASURE DIED IN THE SENATE LAST YEAR AND FACES INTENSE REPUBLICAN OPPOSITION THERE AGAIN THE NEARIMPOSSIBLE GIVEN THE RELENTLESS GLOBAL ECONOMIC FORCES AT WORK IS SATISFYING THAT MOST HUMAN OF NEEDS FOR SOME MEASURE OF CONTROL OVER THE FUTURE FOR SOME HOPE THAT LIFE WILL BE BETTER FOR THE CHILDREN IT JUST KEEPS PICKING UP STEAM WORRIES GEORGE SHORES 46 A VETERAN UAW MEMBER AND WELDER AT CAT SPEAKING OF THE GROWING NUMBER OF EMPLOYERS PLAYING THE STRIKERREPLACEMENT CARD WHEN PRESIDENT REAGAN USED THE TACTIC TO CRUSH THE AIRTRAFFIC CONTROLLERS IN 1981 MR SHORES SAYS IT PUT LABOR UP AGAINST A GUM STUMP AND LABOR HAS BEEN UP AGAINST IT EVER SINCE THE CONTROLLERS' STRIKE WAS ILLEGAL BECAUSE THEY WERE FEDERAL EMPLOYEES BUT EMPLOYERS SINCE THEN HAVE DISCOVERED THAT THE REAGAN TACTIC WORKS EQUALLY WELL AGAINST LEGAL STRIKES SUCH AS THE ONE HERE IT JUST GIVES ME GOOSE BUMPS WHEN I THINK THAT THERE'S NOTHING OUT THERE FOR THESE KIDS SAYS JOLYNN CHILDS 43 THE WIFE OF A CATERPILLAR ELECTRICIAN SHE SEES HER GENERATION'S LADDER INTO THE MIDDLE CLASS A SECURE JOB AT UNION WAGES BEING DRAWN UP LIKE A GANGPLANK THIRTYSEVENYEAROLD JOHN BACKES A 20YEAR CATERPILLAR VETERAN EMPHATICALLY DOES NOT WANT TO SEE HIS TWO DAUGHTERS GO INTO BLUECOLLAR WORK I'D DO EVERYTHING IN MY POWER TO STOP THEM HE SAYS I MAY NOT BE HERE MYSELF WHEN THEY'RE 18 I'LL PROBABLY BE SELLING USED CARS THESE UNION MEN AND WOMEN REMAIN AMONG THE MOST LOYAL CONSTITUENTS OF THE DEMOCRATIC PARTY BUT THEY AREN'T LIKE THE NEW PRESIDENT THEY HELPED ELECT THEY NERVOUSLY CHAINSMOKE MANY OF THEM AND THEIR FACES ARE DRAWN A WORKER MR CLINTON'S AGE 46 LOOKS A DECADE OLDER SOME HAVE LOST FINGERTIPS OR HAVE CRUSHED THEIR HANDS IN MACHINES BUILT FOR BENDING STEEL OTHERS HAVE TORN UP THEIR SHOULDERS THEIR NECKS THEIR BACKS BILL WHEAT 43 AND ENCASED IN A PLASTIC BACK SUPPORT BECAUSE OF AN ONTHEJOB INJURY REMAINS STANDING THROUGHOUT A LENGTHY INTERVIEW AT LOCAL 974 HEADQUARTERS TWISTING AND TURNING RUBBING HIS BACK UP AGAINST A DOORJAMB HE DOES THAT WHENEVER HE CAN IT STIMULATES THE NERVES HE EXPLAINS IT IS CLEAR THAT SOMETHING MORE THAN THE CATERPILLAR WORK FORCE HAS BEEN DOWNSIZED HERE IN RECENT YEARS THERE HAS ALSO BEEN A DOWNSIZING OF WORKERS' TRUSTIN THE COMPANY AND IN NATIONAL POLITICS LIFE ON THE LINE AND IN THE UNION HAS GIVEN THESE WORKERS A RAW YOU'REWITHUSORYOU'REAGAINSTUS MENTALITY WHICH CAN ONLY COMPLICATE PRESIDENT CLINTON'S ATTEMPTS TO MOVE TOWARD THE POLITICAL MIDDLE HE IS OBLIGATED TO UNION PEOPLE DECLARES VIRGINIA POWELL 45 A LAIDOFF CATERPILLAR WORKER HE SAID HE WOULD DO IT GET THE STRIKERREPLACEMENT BILL ENACTED AND SO FAR HE HASN'T DONE IT IF HE DOESN'T DO IT HE KNOWS WE'LL VOTE HIM OUT AND WE WILL BY TEMPERAMENT MR CLINTON SEEMS UNCOMFORTABLE WITH CONFRONTATION BUT CONFRONTATION IS ETCHED INTO THESE WORKERS' LIVES AS STARKLY AS THE WORD SCAB SCRAWLED ON THE WALL OF THE GLEE CLUB TAVERN A WORKERS' HANGOUT THERE IS A YAWNING GAP BETWEEN THE GRITTY REALITY OF THESE WORKERS' LIVES AND MR CLINTON'S VISION OF AN ERA IN WHICH WORKERS AND MANAGEMENT TRANSCEND OLD HOSTILITIES AND WORK TOGETHER AS ALLIES IN A THOUGHTFUL ADDRESS TO LAST YEAR'S UAW NATIONAL CONVENTION CANDIDATE CLINTON ASKED WHETHER AMERICAN LABOR AND AMERICAN MANAGEMENT COULD LEARN TO LIVE WITHOUT ENEMIES THAT IS TO LIVE WITHOUT EACH OTHER AS ENEMIES IF THE ENEMY IS US WE ARE FINISHED HE SAID THE COMPETITION IS ABROAD AND THEY ARE EATING OUR LUNCH BECAUSE WE HAVE STUBBORNLY REFUSED TO WORK TOGETHER TO DO WHAT IT TAKES TO COMPETE AND WIN IT WAS THE SPEECH OF A DEMOCRATIC PRESIDENTIAL CANDIDATE CONFRONTING NEW ECONOMIC REALITIES AS HE SAW THEM IT ALSO WAS AN IDEALISTIC SPEECH ASSUMING AT BOTTOM THAT BOTH MANAGEMENT AND WORKERS ARE RATIONAL PEOPLE OF GOODWILL BUT WHAT IF GOODWILL HAS NOTHING TO DO WITH IT WHAT IF CORPORATIONS AND UNIONS ARE LESS ABOUT SWEET REASON THAN ABOUT CONFRONTATION WHAT IF THE ENEMY IS US AND THE CLINTON VISION IS NAIVE THOSE ARE THE QUESTIONS RAISED HERE BY A FATEFUL CONTRACT SHOWDOWN THAT PITS ILLINOIS'S LARGEST MANUFACTURING EMPLOYER AGAINST ONE OF THE NATION'S STRONGEST UNIONS IT HAS BEEN GOING ON SINCE 1991 WHEN THE UNION SUBMITTED ITS DEMANDS IN THE MIDTOLATE 1980S PARADOXICALLY UAWCATERPILLAR RELATIONS ACTUALLY WERE MOVING IN THE DIRECTION OF MR CLINTON'S IDEALISTIC VISION THE UNION AGREED TO ABOLISH POSITIONS AND RELAX WORK RULES THE COMPANY LISTENED TO WHAT WORKERS HAD TO SAY BOTH FOCUSED ON PRODUCTIVITY AND GLOBAL COMPETITIVENESS BUT THE SPIRIT OF TEAMWORK CURDLED IN THE CONFRONTATIONS OF THE PAST TWO YEARS IN OCTOBER 1991 THE UAW PROPOSED A THREEYEAR CONTRACT EXPLICITLY PATTERNED AFTER ONE JUST RATIFIED WITH CATERPILLAR'S RIVAL DEERE & CO THE UNION FOLLOWED UP WITH A NOV 3 DEADLINE AND WITH THE TWO SIDES STILL FAR APART WHEN THAT DEADLINE ARRIVED A LIMITED STRIKE THAT CLOSED SELECTED PLANTS BUT CATERPILLAR WHICH CALLS ITSELF THE GLOBAL COMPETITOR SAW ITS CHIEF RIVAL AS JAPAN'S KOMATSU LTD NOT THE JOHN DEERE TRACTOR CATERPILLAR WAS DETERMINED TO RESIST THE UNION'S PATTERN BARGAINING MOREOVER BY 1991 COMPANY LEADERSHIP HAD PASSED TO A HARDEREDGED MORE CONFRONTATIONAL CHAIRMAN DONALD FITES AND SO CATERPILLAR ESCALATED COUNTERING THE LIMITED STRIKE WITH A BROAD LOCKOUT THEN AFTER FIVE MONTHS OF DEADLOCK THE COMPANY PLAYED ITS TRUMP CARD WORKERS COULD EITHER RETURN UNDER TERMS OF THE COMPANY'S MOST RECENT OFFER OR BE PERMANENTLY REPLACED WITH EAGER JOBSEEKERS FLOODING IN AND ITS OWN MEMBERS BEGINNING TO CROSS ITS PICKET LINES THE UAW FOLDED ITS STRIKE SINCE THEN THERE HAS BEEN SPORADIC COMMUNICATION BUT STILL NO AGREEMENT UAW WORKERS CONTINUE TO WORK UNDER THE TERMS OF THE COMPANY'S LAST OFFER WAGES AREN'T THE GUT ISSUE HERE THE GUT ISSUE IS JOB SECURITY THE COMPANY OFFERS SIXYEAR SECURITY FOR EXISTING EMPLOYEES AS OF JUNE 1 1992 BUT THE UNION SEES LOOPHOLES IN THAT GUARANTEE AND WORRIES THAT THERE ARE NO GUARANTEES AT ALL ON THE NUMBER OF UAW JOB SLOTS AFTER THAT SOMETHING LIKE HALF THE UAW WORK FORCE HERE WILL BECOME ELIGIBLE FOR RETIREMENT WITHIN THOSE SIX YEARS POTENTIALLY OPENING THE DOOR TO A MAJOR REDUCTION IN UAW MEMBERSHIP CATERPILLAR TIES ITS BARGAINING POSITION EXPLICITLY TO THE WORLD COMPETITION LINE OUR STRATEGY IS TO BE GLOBALLY COMPETITIVE FROM A US BASE SAYS GROUP PRESIDENT GERALD FLAHERTY THE UAW WHICH WAS SYMPATHETIC TO THAT ARGUMENT ONCE NOW SEES THE VERY WORDS GLOBAL COMPETITION AS A COVER FOR MANAGEMENT ARROGANCE IN A CORPORATE CULTURE THAT ONCE CELEBRATED THE CATERPILLAR FAMILY UNIONMANAGEMENT RELATIONS RANGE FROM SULLEN TO POISONOUS USING THE GLOBALLY COMPETITIVE ARGUMENT IS GETTING OLD AROUND HERE SAYS MR BROWN THE PRESIDENT OF LOCAL 974 WE SWALLOWED THE GLOBALLY COMPETITIVE BULL HOOK LINE AND SINKER THEN WE GET A NEW CEO THEY TOOK EVERY BIT OF OUR WILLINGNESS TO COOPERATE AND LAUGHED AT US VOWS ROGER BATTIN LOCAL 974'S POLITICALACTION DIRECTOR I WILL GO TO MY GRAVE WITH HATRED FOR THE COMPANY AND WHAT IT DID TO PEOPLE HE SPEAKS OF MARRIAGES THAT HAVE SPLINTERED AMID THE STRESS OF THE STRUGGLE HERE OF PICKETLINE CONFRONTATIONS THAT SET BROTHER AGAINST BROTHER AND NEIGHBOR AGAINST NEIGHBOR SO MANY UNION FAMILIES ARE LOOKING TO PRESIDENT CLINTON FOR DELIVERANCE INDEED HE ALREADY HAS HELPED THEM IN TANGIBLE WAYS HE SIGNED THE FAMILYLEAVE BILL THAT GEORGE BUSH HAD VETOED HE HAS APPOINTED A COMMISSION TO STUDY WAYS TO GIVE UNIONS A LEVEL PLAYING FIELD IN BARGAINING STRUGGLES WITH MANAGEMENT HE DID MORE FOR US IN HIS FIRST 100 DAYS THAN THE LAST TWO PRESIDENTS DID IN 12 YEARS SAYS WORKER GINNY NAILING A 55YEAROLD UAW ACTIVIST AND DELEGATE TO LAST YEAR'S DEMOCRATIC NATIONAL CONVENTION STILL THE ALLIANCE IS AN UNEASY ONE MANY HERE OPPOSE THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH THE PRESIDENT SUPPORTS AND WHILE MOST SEE MR CLINTON AS A WELLINTENTIONED PROBLEMSOLVER HE'S KIND OF LIKE A MOM WHO'S TRYING TO FIND OUT WHY THE KIDS ARE FIGHTING SAYS PATT BENEVENTI SOME DOUBT THAT HE HAS THE GUTS TO KEEP HIS PROMISES TO LABOR HE'S TOO DAMN PRETTY A PRETTY BOY SAYS WILBURN SMITH A 47YEAROLD CATERPILLAR ELECTRICIAN ON A DEEPER LEVEL MANY UNION FAMILIES HERE ARE PROFOUNDLY ALIENATED FROM POLITICS THE PRESIDENT AND CONGRESS WASHINGTON LOBBYISTS AND WASHINGTON IDEOLOGUES ALL BLUR INTO ONE BIG BLOB FOR THEM THEY SEE THE BLOB AS WORKING AGAINST THEM AT THE TOP IT ALL COMES TOGETHER AS ONE SAYS JOLYNN CHILDS THE UNION WIFE WHEN CANDIDATE CLINTON WAS HERE HE VISITED THE COMPANY AS WELL AS THE UNION AND SUGGESTED THE WHITE HOUSE SUMMON BOTH SIDES TO WASHINGTON TODAY THE COMPANY RESISTS THAT IDEA THIS ISN'T A NATIONAL EMERGENCY THAT REQUIRES THE ATTENTION OF THE PRESIDENT OR EVEN THE SECRETARY OF LABOR ARGUES TIMOTHY ELDER CATERPILLAR'S MANAGER OF GOVERNMENTAL AFFAIRS UNION MEMBERS LIKE THE IDEA OF A WHITE HOUSE MEETING BUT WONDER WHETHER EVEN THE PRESIDENT OF THE UNITED STATES COULD PUT THE OLD RELATIONSHIP BACK TOGETHER AGAIN IT'LL TAKE A BIGGER MAN THAN CLINTON SAYS DICK WOODMANCY A 40YEAROLD CASUALTY OF THE CONFLICT HERE ON DISABILITY WITH CRUSHED NERVES IN HIS LEFT HAND AT THE TIME HE REFUSED A COMPANY CALL TO CROSS THE PICKET LINE NOW GETTING BY ON 200 A WEEK FROM A UAW ASSISTANCE FUND HE ISN'T SURE HE WILL EVER HAVE A CAT JOB TO GO BACK TO ALTHOUGH HIMSELF A CLINTON VOTER HE WORRIES A LOT OF PEOPLE WILL NEVER FORGIVE OR FORGET SEE RELATED LETTER LETTERS TO THE EDITOR CATERPILLAR EXCELS IN BENEFITS AND SAFETY WSJ AUG 26 1993 9307260036 YY93 MM08 9308250171 930825 INTERNATIONAL HONDA'S PRETAX PROFIT TUMBLED 55 IN FIRST FISCAL QUARTER ON POOR SALES BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO HONDA MOTOR CO HAMMERED BY THE STRONG YEN AND A STEEP DECLINE IN CAR SALES POSTED A 55 DROP IN GROUP PRETAX PROFIT IN THE LATEST QUARTER HONDA'S PROFIT BEFORE TAX FELL TO 1533 BILLION YEN 1485 MILLION IN ITS FISCAL FIRST QUARTER ENDED JUNE 30 FROM 3418 BILLION YEN IN THE YEAREARLIER PERIOD THE COMPANY'S GROUP SALES FELL 17 TO 91965 BILLION YEN FROM 1112 TRILLION YEN NET INCOME MEANWHILE TUMBLED 62 TO 609 BILLION YEN FROM 1603 BILLION YEN THE DISMAL SHOWING WAS LARGELY BECAUSE OF POOR CAR SALES IN THE US AND JAPAN ANALYSTS SAID IN THE US HONDA'S MAINSTAY ACCORD MODEL HAS BEEN LOSING MARKET SHARE IN THE APRILTHROUGHJUNE PERIOD HONDA'S CAR SALES IN NORTH AMERICA DROPPED 12 TO 178000 UNITS WHILE SALES IN JAPAN FELL 11 TO 149000 UNITS OVERALL CAR SALES DECLINED 11 TO 414000 UNITS THE RECENT RISE OF THE YEN AGAINST THE DOLLAR ALSO CAME AS A BIG BLOW TO HONDA BECAUSE OVERSEAS REVENUE ACCOUNTS FOR TWOTHIRDS OF THE COMPANY'S GROUP SALES WHEN THE YEN RISES IN VALUE HONDA'S OVERSEAS SALES BRING IN LESS REVENUE IN YEN TERMS HONDA'S RECOVERY DEPENDS HEAVILY ON THE SUCCESS OF ITS NEW ACCORD MODEL WHICH THE COMPANY PLANS TO LAUNCH IN JAPAN AND THE US NEXT MONTH THAT'S ALL THEY'VE GOT TO COUNT ON SAID NORIYUKI MATSUSHIMA AN ANALYST FOR NIKKO RESEARCH CENTER LTD IF THE ACCORD DOESN'T DO WELL IT WILL BE TOUGH TIMES FOR HONDA BUT EVEN IF THE NEW MODEL IS A HIT HONDA WON'T SEE ITS EARNINGS IMPROVE UNTIL THE QUARTER ENDING DEC 31 AT THE EARLIEST MR MATSUSHIMA ESTIMATES IN THE CURRENT QUARTER HE NOTED THE YEN HAS RISEN DRAMATICALLY AGAINST THE DOLLAR DESPITE ITS PROBLEMS HONDA LEFT UNCHANGED ITS EARNINGS ESTIMATES FOR THE YEAR ENDING MARCH 31 THE COMPANY EXPECTS NET PROFIT FOR THE YEAR TO DROP 40 TO 23 BILLION YEN AND SALES TO FALL 32 TO FOUR TRILLION YEN BUT ANALYSTS SAY THE COMPANY PROBABLY WILL HAVE TO LOWER ITS ESTIMATES IN THE COMING MONTHS ONE BRIGHT SPOT IS HONDA'S MOTORCYCLE BUSINESS SALES ROSE 12 TO 999000 MOTORCYCLES IN THE LATEST QUARTER AS MORE PEOPLE BOUGHT THEM IN NORTH AMERICA AND ASIA EXCLUDING JAPAN BUT THE HIGH YEN ATE INTO THE VALUE OF HONDA'S OVERSEAS MOTORCYCLE REVENUE IN VALUE TERMS OVERALL MOTORCYCLE SALES DROPPED 26 TO 146 BILLION YEN 9308250170 930825 INTERNATIONAL ROMANIAN INDUSTRIAL OUTPUT BUCHAREST ROMANIAN INDUSTRIAL PRODUCTION FOR THE FIRST SEVEN MONTHS OF 1993 FELL 5 FROM THE CORRESPONDING PERIOD OF 1992 IT FELL 75 IN THE FIRST HALF COMPARED WITH THE FIRST HALF OF LAST YEAR RETAIL SALES FOR THE FIRST SEVEN MONTHS WERE DOWN 26 9308250169 930825 WHO'S NEWS PRIDE PETROLEUM SERVICES INC PRIDE PETROLEUM SERVICES INC HOUSTON JAMES W ALLEN WAS NAMED VICE PRESIDENT LATIN AMERICAN OPERATIONS OF THIS PETROLEUM SERVICES COMPANY MR ALLEN 49 YEARS OLD WAS MOST RECENTLY MANAGER OF LATIN AMERICAN OPERATIONS 9308250168 930824 COMING SOON TO YOUR SUSHI BAR ROLLER DERBY'S THRILLS AND SPILLS BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO PRESS THE TUXEDO AND PIN DOWN THAT SPECIAL SOMEONE FOR A NIGHT OUT THIS SUNDAY THE EXCLUSIVE TOKYO PRINCE HOTEL WILL HOST THE '93 WRESTLE DINNER VERY POSSIBLY THE FIRST EVENT TO COMBINE FINE OLD WORLD STYLE DINING AND HAMMERLOCKS IT PROMISES TO BE A SMASH ULTRAWARRIORS ENTICE YOU WITH A DREAM SAYS THE HOTEL'S FLYER FORMALLY ATTIRED SPECTATORS AND STRIPPEDDOWN WRESTLERS ENCOUNTER EACH OTHER IN AN EVERCLOSER RANGE AND HOW THE PRINCE WILL PUT A FIGHTING RING INSIDE ITS BALLROOM AS AN EXPECTED 700 GUESTS CLINK CRYSTAL AND BREAK BREAD SHINYA DESTRUCTION KING HASHIMOTO AND JYUSHIN THUNDER LYGER AND FOUR OTHERS WILL PILE INTO THE RING IN SINGLES AND IN TAG TEAMS THE GALA EVENING OF BEEF AND BEEFCAKE WHICH WILL ALSO BE TELEVISED WILL END WITH A FASHION SHOW OF FORMALWEAR PRESENTED BY SOME OF JAPAN'S TOP UNMARRIED MALE AND FEMALE WRESTLING STARS WHO WILL ATTEND RICH FOLKS TICKETS COST ABOUT THREE TIMES THE AVERAGE STEAK AND A TORCH SINGER EVENING AT A JAPANESE HOTEL BUT THEN WRESTLING HAS LONG BEEN BIG IN JAPAN 10 YEARS AGO FOREIGNERS LIKE ANDRE THE GIANT AND ABDULLAH THE BUTCHER DID WELL HERE THE FIGHTS USUALLY MATCHED AN OUTSIZED FOREIGNER AGAINST A WEEDY JAPANESE WRESTLER WHO OVERCAME HIS OPPONENT IN THE FINAL ROUND ONE TOP JAPANESE WRESTLER WAS UNTIL RECENTLY A NOTED FIGURE ON THE POLITICAL SCENE AND EVEN TRIED TO SQUEEZE OUT A PEACE AGREEMENT WITH SADDAM HUSSEIN DURING THE 199192 GULF WAR JAPANESE FEMALE WRESTLERS ARE ROLE MODELS FOR LOCAL HIGH SCHOOL GIRLS THIS YEAR JAPANESE PRO WRESTLING IS MORE POPULAR THAN EVER ORGANIZERS SAY SINCE JUNE THE FIGHTING SPIRIT SHOP IN TOKYO'S TRENDY ROPPONGI DISTRICT HAS BEEN OFFERING WRESTLING REGALIA A WRESTLING COMPUTER GAME RELEASED IN JUNE HAS SOLD 250000 COPIES IN ADDITION STOCK ANALYSTS IN JAPAN ARE RECOMMENDING WRESTLINGRELATED SHARES IN COMPANIES THAT MAY BENEFIT FROM THE BOOM THE WRESTLE DINNER ISN'T THE ONLY UNUSUAL PROMOTION AT A TOKYO HOTEL THOUGH WITH TOURISM HURTING BECAUSE OF THE STRONG YEN INNKEEPERS ARE GRAPPLING WITH HARD TIMES SOME OF THE TOP PLACES IN TOWN HAVE COOKED UP QUIRKY PROMOTIONS LIKE A LADIES RECEPTION A THREEHOUR ALLYOUCANDRINK SESSION FOR BORED HOUSEWIVES AND MASS TANGO DINNERS FOR THE OLDER SET 9308250167 930825 WHO'S NEWS COASTAL CORP COASTAL CORP HOUSTON HAROLD BURROW 78 YEARS OLD WAS NAMED CHAIRMAN OF THE AMERICAN NATURAL RESOURCES CO UNIT OF THIS NATURAL GAS PIPELINE COMPANY SUCCEEDING JAMES R PAUL WHO RESIGNED LAST MONTH MR BURROW WAS VICE CHAIRMAN OF THE UNIT AND HE REMAINS VICE CHAIRMAN OF THE PARENT COMPANY JAMES F CORDES 52 WAS NAMED CHIEF EXECUTIVE OFFICER OF AMERICAN NATURAL A NEW POSITION MR CORDES REMAINS AN EXECUTIVE VICE PRESIDENT OF COASTAL CORP 9308250165 930825 POLITICS & POLICY ADVOCATE GROUPS FOR CONGRESSIONAL TERM LIMITS THOUGH UNITED IN CAUSE CLASH OVER STRATEGY BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FOR THE PEOPLE PUSHING TERM LIMITS FOR MEMBERS OF CONGRESS THESE OUGHT TO BE THE BEST OF TIMES PUBLICOPINION POLLS REVEAL A PROMISING CONJUNCTION HIGH MARKS FOR THE TERMLIMIT CONCEPT AND ABYSMALLY LOW MARKS FOR CONGRESS ITSELF BUT THERE ARE SOME BIG PROBLEMS FIRST OF ALL THE TERMLIMIT LEADERS ARE INVOLVED IN A BYZANTINE POWER STRUGGLE AND PARTLY BECAUSE THEY EYE EACH OTHER SO SUSPICIOUSLY THEY ARE HAVING TROUBLE AGREEING ON A STRATEGY TO PUT TERM LIMITS IN PLACE THAT MANY AMERICAN VOTERS WANT TERM LIMITS PLACED ON MEMBERS OF CONGRESS IS NO LONGER SUBJECT TO DOUBT SO FAR THROUGH THE BALLOT INITIATIVE PROCESS 15 STATES HAVE PASSED MEASURES LIMITING THE NUMBER OF TERMS THEIR MEMBERS CAN SERVE IN CONGRESS THAT MEANS THAT THE CLOCK IS TICKING FOR 156 HOUSE MEMBERS AND 30 SENATORS AND WITH THE INITIATIVE PROCESS AVAILABLE TO VOTERS IN EIGHT MORE STATES THAT NUMBER WILL CONTINUE TO GROW BUT MEMBERS OF CONGRESS OPPOSED TO TERM LIMITS AND THAT INCLUDES MOST OF THEM BELIEVE THAT THE SUPREME COURT ULTIMATELY WILL RULE THAT STATEMANDATED RESTRICTIONS ON THE NUMBER OF TERMS FEDERAL OFFICIALS CAN SERVE ARE UNCONSTITUTIONAL THEY SPEND A LOT OF THEIR TIME PRAYING THAT THE SUPREME COURT WILL BAIL THEM OUT ON THIS SAYS PAUL JACOB EXECUTIVE DIRECTOR OF US TERM LIMITS THE LARGEST OF THE GROUPS PUSHING FOR CONGRESSIONAL TERM LIMITS THE LEGAL PROCESS IS ALREADY UNDER WAY WITH A CHALLENGE TO THE STATE OF WASHINGTON'S TERMLIMIT STATUTE BROUGHT BY HOUSE SPEAKER THOMAS FOLEY LEADING THE WAY THAT CASE IS EXPECTED TO BE DECIDED AT THE DISTRICT COURT LEVEL LATER THIS YEAR MOVE ON TO THE FEDERAL APPEALS COURT IN SAN FRANCISCO NEXT YEAR AND TURN UP IN THE US SUPREME COURT AS EARLY AS 1995 OTHER CASES ARE MOVING THROUGH COURTS IN ARKANSAS AND NEBRASKA WASHINGTON WILL ALMOST SURELY BE THE BIG TEST CASE AND THE TERMLIMITS GROUPS DISAGREE ON HOW TO PROCEED THERE US TERM LIMITS PETITIONED THE COURT RECENTLY TO INTERVENE IN SPEAKER FOLEY'S SUIT AND THE JUDGE ALLOWED THE GROUP A LIMITED ROLE IN THE PROCEEDINGS THAT WAS NOT WHOLLY WELCOME TO THE OTHER LEADING GROUP PUSHING FOR TERM LIMITS THE TERM LIMITS LEGAL INSTITUTE THE INSTITUTE'S LAWYER CLETA MITCHELL A FORMER DEMOCRATIC MEMBER OF THE OKLAHOMA LEGISLATURE IS COCOUNSEL IN THE WASHINGTON CASE REPRESENTING THE ORGANIZATION THAT PUT THE ISSUE ON THE BALLOT LAST YEAR THE OTHER COCOUNSEL IS GRIFFIN BELL WHO SERVED AS JIMMY CARTER'S ATTORNEY GENERAL BUT WHO SUPPORTED GEORGE BUSH IN THE 1992 PRESIDENTIAL ELECTION THERE IS A CERTAIN HOTHOUSE QUALITY TO THE TERMLIMITS MOVEMENT THE GROUPS INVOLVED TEND TO HAVE COMPLICATED GENEALOGIES AND THEY KEEP A WARY EYE ON ONE ANOTHER THE US TERM LIMITS ORGANIZATION IS A LIBERTARIAN GROUP BANKROLLED BY HOWARD RICH A WEALTHY NEW YORKER WHO RUNS A PLUMBING BUSINESS AS WELL AS A REALESTATE BUSINESS HIS GROUP TRACES ITS ANCESTRY TO A RESEARCH PROJECT RUN OUT OF CITIZENS FOR A SOUND ECONOMY A BUSINESSBACKED GROUP HEADED BY JAMES C MILLER WHO SERVED AS PRESIDENT REAGAN'S BUDGET DIRECTOR WHEN SOME OF CSE'S DIRECTORS SAID THEY DIDN'T THINK MUCH OF THE TERMLIMIT IDEA THE PROJECT WAS SPUN OFF TO A NEW GROUP CALLED CITIZENS FOR CONGRESSIONAL REFORM WHICH WAS BANKROLLED BY TWO MULTIMILLIONAIRE BROTHERS FROM KANSAS CHARLES AND DAVID KOCH WHEN CCR BROKE UP IN 1991 ITS ASSETS MAILING LISTS DESKS COMPUTERS WERE PURCHASED BY MR RICH AND THE NEW GROUP US TERM LIMITS WAS BORN IT MAINTAINS AN IMPRESSIVE SUITE OF OFFICES IN DOWNTOWN WASHINGTON IT WANTS TO BE THE 300POUND GORILLA IN THIS BUSINESS SAYS MRS MITCHELL OF THE TERM LIMITS LEGAL INSTITUTE MRS MITCHELL'S GROUP HAS ITS OWN COMPLICATED HISTORY IT GREW OUT OF A GROUP CALLED AMERICANS BACK IN CHARGE FORMED BY TERRY CONSIDINE WHO WAS A GOP STATE SENATOR IN COLORADO WHEN HE PUSHED THROUGH THE FIRST SUCCESSFUL VOTE TO LIMIT TERMS OF MEMBERS OF CONGRESS IN 1990 MRS MITCHELL AWAKENED TO THE TERMLIMITS IDEA IN 1981 AT HARVARD UNIVERSITY WHERE SHE WAS A FELLOW AT THE INSTITUTE OF POLITICS ALSO A FELLOW THAT YEAR WAS LONGTIME GOP CONSULTANT EDDIE MAHE THEY TEAMED UP TOGETHER TO PURSUE THE TERMLIMITS IDEA AND MR MAHE BECAME SOMETHING OF A GODFATHER TO WHAT IS NOW THE TERM LIMITS LEGAL INSTITUTE IT RENTS SPACE IN MR MAHE'S SUITE OF OFFICES BOTH ORGANIZATIONS ARE MIXED UP WITH A THIRD GROUP CALLED AMERICANS TO LIMIT CONGRESSIONAL TERMS BASED IN LANGLEY VA BUT THAT GROUP WHICH USED CONSERVATIVE DIRECTMAIL SPECIALIST RICHARD VIGUERIE TO RAISE ITS MONEY IS NOW BANKRUPT AND REPORTEDLY OWES MR VIGUERIE MORE THAN 1 MILLION US TERM LIMITS AND THE TERM LIMITS LEGAL INSTITUTE HAVE BOTH TRIED TO REVIVE ALCT BUT SO FAR WITHOUT SUCCESS AT ISSUE IS THE GROUP'S HUGE MAILING LIST SAID TO CONTAIN SOMEWHERE BETWEEN 300000 AND 500000 NAMES MR JACOB FROM US TERM LIMITS IS INTERESTED IN BUYING THAT LIST BUT HE NOTES IT'S GETTING OLDER AND OLDER US TERM LIMITS AND THE TERM LIMITS LEGAL INSTITUTE SEE THEMSELVES AS QUITE DIFFERENT CREATURES US TERM LIMITS IS LESS TRADITIONALLY POLITICAL MORE EASILY SWAYED TO A LIBERTARIAN VIEW OF THINGS ONE OF ITS DIRECTORS AND A KEY POLICY MAKER IS ED CRANE PRESIDENT OF THE CATO INSTITUTE A FREEMARKET THINK TANK WITH STRONG LIBERTARIAN CREDENTIALS THE TERM LIMITS LEGAL INSTITUTE WITH ITS CAST OF POLITICAL OPERATIVES SEES ITSELF AS A BIPARTISAN GROUP WORKING FOR CHANGE WITHIN THE TRADITIONAL TWOPARTY POLITICAL SYSTEM IN THE LITIGATION NOW UNDER WAY MRS MITCHELL AND THE INSTITUTE FAVOR A SLOW CAUTIOUS APPROACH TO BUILD A COMPLETE RECORD FOR THE SUPREME COURT TO REVIEW THAT'S WHY MRS MITCHELL FAVORS A TRIAL IN SEATTLE US TERM LIMITS WANTS TO SPEED THE CASE TO THE SUPREME COURT AS QUICKLY AS POSSIBLE QUICK AND DIRTY SAYS MRS MITCHELL US TERM LIMITS OPPOSES A TRIAL IT WANTS THE JUDGE TO MAKE A SUMMARY JUDGMENT ON THE BASIS OF BRIEFS SUBMITTED BY ALL SIDES WHERE THE TWO GROUPS AGREE IS IN THEIR BELIEF THAT THE CASE IS WINNABLE IN THE SUPREME COURT THE QUESTION IS SAYS MRS MITCHELL WHAT ARE THE LIMITS ON THE POWER OF THE PEOPLE THIS IS THE FIRST CASE UNDER THE 10TH AMENDMENT TO THE CONSTITUTION THAT WILL EXAMINE THAT QUESTION THE 10TH AMENDMENT RESERVES POWERS NOT DELEGATED TO THE FEDERAL GOVERNMENT TO THE STATES TERMLIMIT OPPONENTS ARGUE THAT THE CONSTITUTION RESERVES TO THE FEDERAL GOVERNMENT THE MANNER IN WHICH THE CONGRESS IS CHOSEN MOST MEMBERS OF CONGRESS ARE RELYING ON MR FOLEY TO WIN HIS AND THEIR CASE BEFORE THE SUPREME COURT A SMALL DETAIL OF MEMBERS PERHAPS 90 IN ALL SUPPORTS TERM LIMITS ONE WAY OR ANOTHER ALTHOUGH THEIR EFFORTS ARE NOT ALWAYS APPRECIATED BY EITHER US TERM LIMITS OR THE TERM LIMITS LEGAL INSTITUTE FOR INSTANCE REP BILL MCCOLLUM REPUBLICAN OF FLORIDA HAS PROPOSED AN AMENDMENT TO THE CONSTITUTION LIMITING SENATORS AND MEMBERS OF CONGRESS TO 12 YEARS IN OFFICE BUT FLORIDA ALREADY HAS ENDORSED AN INITIATIVE LIMITING HOUSE MEMBERS TO EIGHT YEARS IN OFFICE MR MCCOLLUM IS SERVING HIS 13TH YEAR IN OFFICE 9308250164 930825 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CIT GROUP HOLDINGS 200 MILLION OF FLOATINGRATE MEDIUMTERM NOTES DUE AUG 31 1995 THROUGH UNDERWRITERS LED BY UBS SECURITIES INC ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WILL PAY QUARTERLY AND FLOAT DAILY AT PRIME MINUS 245 BASIS POINTS OVER TREASURYS THE DEBT WILL BE PRICED AT PAR THE DEBT IS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP CIT GROUP HOLDINGS IS JOINTLY OWNED BY DAIICHI KANGYO BANK LTD AND CHEMICAL BANKING CORP CONSOLIDATED NATURAL GAS CO 150 MILLION OF DEBENTURES DUE AUG 1 2003 PRICED IN A COMPETITIVE BID WON BY SALOMON BROTHERS INC THE DEBT WAS PRICED AS 575S AT 98402 TO YIELD 5965 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 37 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF PSA INDEX BONDS ISSUED WITH A LEGAL FINAL MATURITY OF SEPT 24 1998 ACCORDING TO MCM CORPORATEWATCH THE DEBT WAS PRICED AT PAR TO YIELD 453 THE ACTUAL MATURITY WILL BE DETERMINED BY THE PSA SPEED OF THE FEDERAL NATIONAL MORTGAGE ASOCIATION'S 30YEAR 7 MORTGAGES THE EXPECTED MATURITY IS BASED ON PREPAYMENTS AT A SPEED OF 100 TO 250 OF THE PSA MODEL THE EXPECTED AVERAGE MATURITY IS 25 YEARS THE NONCALLABLE DEBT WAS PRICED AT A SPREAD OF 55 BASIS POINTS ABOVE TWOYEAR WHENISSUED TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST TENNESSEE BANK CHIPCOM CORP 800000 COMMON SHARES PRICED AT 49 APIECE THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES FORTUNE PETROLEUM CORP 14 MILLION UNITS PRICED AT 525 APIECE THROUGH UNDERWRITERS LED BY HJ MEYERS & CO EACH UNIT INCLUDES ONE COMMON SHARE AND ONE FIVEYEAR WARRANT TO PURCHASE ONE SHARE OF STOCK AT A WARRANT EXERCISE PRICE OF 475 CITY OF LOS ANGELES CONVENTION & EXHIBITION CENTER 505 MILLION REFUNDING CERTIFICATES OF PARTICIPATION PRICED BY A GRIGSBY BRANDFORD & CO GROUP YIELDS RANGE FROM 48 IN 2003 TO 553 IN 2018 THE ISSUE IS INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRIES TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P LEWIS COUNTY WASH PUBLIC UTILITY DISTRICT NO 1 144 MILLION SERIES 1993 REVENUE REFUNDING BONDS FOR THE COWLITZ FALLS HYDROELECTRIC PROJECT PRICED BY A SMITH BARNEY SHEARSON INC GROUP YIELDS RANGE FROM 26 IN 1994 TO 565 IN 2022 BOTH MOODY'S AND S&P HAVE RATED THE BONDS DOUBLEA NEW YORK STATE POWER AUTHORITY 11 BILLION SERIES CC GENERALPURPOSE REFUNDING AND NEWMONEY BONDS PRICED BY A PAINEWEBBER INC GROUP YIELDS RANGE FROM 345 IN 1996 TO 54 IN 2018 MOODY'S HAS RATED THE ISSUE DOUBLEA AND S&P HAS ASSIGNED A DOUBLEAMINUS RATING VIRGINIA HOUSING DEVELOPMENT AUTHORITY 156 MILLION VARIOUS 1993 COMMONWEALTH MORTGAGE REVENUE BONDS APPARENTLY WON BY A BT SECURITIES CORP GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 2986 INCLUDED IN THE OFFERING ARE 81 MILLION SERIES E BONDS WHICH HAVE A 305 COUPON AND ARE PRICED TO YIELD 3 IN 1994 THESE BONDS ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX THERE ARE ALSO 75 MILLION SERIES F BONDS WHICH HAVE A 29 COUPON AND ARE PRICED TO YIELD 285 IN 1994 MOODY'S HAS RATED THE ISSUE DOUBLEA/VMIG1 FEDERAL NATIONAL MORTGAGE ASSOCIATION 850 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1993187 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7125 AND WEIGHTED AVERAGE MATURITY OF 359 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF STRIPPED MORTGAGEBACKED SECURITIES TRUST 224 OFFERED THROUGH UNDERWRITER SALOMON BROTHERS INC AND BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 85 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE MATURITY OF 344 MONTHS BANKAMERICA CORP US 100 MILLION OF FLOATINGRATE EURONOTES DUE SEPT 1 1998 AT VARIABLE ISSUE AND REOFFER PRICE VIA KIDDER PEABODY SECURITIES CO INTEREST PAYABLE QUARTERLY AT 25 BASIS POINTS ABOVE THREEMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS NO COMMISSIONS EIDENSHA CO JAPAN 60 MILLION OF 125 EUROBONDS WITH EQUITYWARRANTS ATTACHED DUE SEPT 9 1997 AT ISSUE PRICE PAR VIA NOMURA INTERNATIONAL PLC GUARANTOR TOKAI BANK LTD WARRANTS TO PURCHASE COMPANY SHARES FROM SEPT 21 1993 TO AUG 29 1997 TERMS FIXED AUG 31 INDICATED PREMIUM 25 YESTERDAY'S CLOSING SHARE PRICE 1340 YEN FEES 225 POINTS LESS 015 POINT FOR LEAD MANAGER SPAREKASSEN BIKUBEN AS DENMARK 100 MILLION OF SUBORDINATED STEPUP FLOATINGRATE EURONOTES DUE SEPT 23 2000 AT ISSUE AND REOFFER PRICE 988 VIA CHEMICAL INVESTMENT BANK LTD INTEREST PAYABLE SEMIANNUALLY FOR FIRST FOUR YEARS AT SIXMONTH DOLLAR LIBOR PLUS 110 BASIS POINTS THEREAFTER AT LIBOR PLUS 250 BASIS POINTS CALLABLE FROM SEPTEMBER 1997 AND EACH INTEREST PAYMENT DATE THEREAFTER AT PAR FEES 085 POINT SPINTAB AB SWEDEN 250 MILLION OF FLOATINGRATE EURONOTES DUE SEPTEMBER 1998 AT ISSUE AND REOFFER PRICE 99875 VIA KIDDER PEABODY SECURITIES CO INTEREST PAYABLE SEMIANNUALLY AT 25 BASIS POINTS ABOVE SIXMONTH DOLLAR LIBOR FEES 02 POINT STOCKHOLM SWEDISH MUNICIPALITY 100 MILLION CANADIAN DOLLARS OF 675 EUROBONDS DUE OCT 14 1998 AT ISSUE PRICE 100675 VIA HAMBROS BANK LTD REOFFERED AT 991 TO YIELD 697 A MARGIN OF 50 BASIS POINTS OVER THE COMPARABLE CANADIAN GOVERNMENT BOND FEES 1875 POINTS WAKITA & CO JAPAN 100 MILLION OF 125 EUROBONDS WITH EQUITYWARRANTS ATTACHED DUE SEPT 9 1997 AT ISSUE PRICE PAR VIA WAKO INTERNATIONAL EUROPE LTD GUARANTOR THE SAKURA BANK LTD WARRANTS TO PURCHASE COMPANY SHARES EXERCISABLE FROM SEPT 27 1993 TO AUG 29 1997 TERMS FIXED AUG 31 INDICATED PREMIUM 25 YESTERDAY'S CLOSING SHARE PRICE 1920 YEN FEES 225 POINTS LESS 02 POINT FOR LEAD MANAGER 9308250163 930825 WHO'S NEWS CLARK EQUIPMENT CO CLARK EQUIPMENT CO SOUTH BEND IND JAMES C CHAPMAN CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF OUTBOARD MARINE CORP WAS ELECTED A DIRECTOR OF THIS MAKER OF HEAVY EQUIPMENT THE ADDITION OF MR CHAPMAN 62 YEARS OLD INCREASES THE BOARD TO EIGHT MEMBERS 9308250162 930825 INTERNATIONAL GERMAN INTERESTRATE CUT IS EXPECTED BY ECONOMISTS FRANKFURT CHIEF ECONOMISTS AT GERMANY'S 12 MOST INFLUENTIAL BANKS UNANIMOUSLY EXPECT GERMANY'S CENTRAL BANK TO CUT THE DISCOUNT RATE TOMORROW ACCORDING TO A SURVEY BY THE GERMAN FINANCIAL MONTHLY FINANZEN TWOTHIRDS OF THOSE SURVEYED EXPECT THE BUNDESBANK'S POLICYMAKING CENTRAL BANK COUNCIL TO AGREE ON A REDUCTION OF 050 PERCENTAGE POINT FROM THE CURRENT 675 THE FORECASTS RANGED BETWEEN 025 PERCENTAGE POINT AND ONE FULL PERCENTAGE POINT THE DISCOUNT RATES TYPICALLY SETS THE FLOOR FOR GERMAN MONEYMARKET RATES AT THE END OF JULY THE BUNDESBANK TOUCHED OFF A CURRENCY CRISIS IN EUROPE WHEN IT LEFT ITS DISCOUNT RATE UNCHANGED AFTER MANY HAD EXPECTED A REDUCTION AN ASSAULT ON THE FRENCH FRANC AND OTHER CURRENCIES ENSUED AND EUROPEAN COMMUNITY FINANCE MINISTERS WERE FORCED TO ALL BUT ABANDON THEIR SYSTEM OF FIXING EXCHANGE RATES THE MAGAZINE ALSO FOUND THAT TWOTHIRDS OF THOSE SURVEYED CONSIDER A LOWERING OF GERMANY'S 775 LOMBARD RATE TO BE LIKELY ON AVERAGE THEY EXPECT A CUT OF 025 PERCENTAGE POINT THE LOMBARD RATE ACTS AS A CEILING FOR MONEYMARKET RATES 9308250161 930825 INSIDE TRACK SYNOPSYS INSIDERS SELL HOT STOCK BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL SHARES OF SYNOPSYS INC THE CALIFORNIABASED SOFTWARE DEVELOPER HAVE BEEN AMONG THE HOT PERFORMERS IN THIS YEAR'S VOLATILE TECHNOLOGY SECTOR THE STOCK GAINED 113 DURING THE PAST YEAR ON CONSISTENTLY STRONG EARNINGS REPORTS BUT WITH THE OVERTHECOUNTER STOCK FETCHING 4950 A SHARE SHY OF ITS 52WEEK HIGH OF 5175 A CLUSTER OF SENIOR SYNOPSYS INSIDERS HAVE BEEN SELLING LARGE CHUNKS OF THEIR SHARES FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW PROFESSIONALS WHO TRACK INSIDER ACTION SAY THEY'VE DETECTED A PATTERN OF SIMILAR CASES OF SELLING NEAR THE HIGHS AMONG OTHER COMPUTER SOFTWARE AND HARDWARE COMPANIES MANY OF WHICH HAVE SEEN THEIR PROFIT MARGINS SQUEEZED IN RECENT MONTHS ON AVERAGE BOTH SECTORS HAVE BEEN MORE AGGRESSIVE ON THE SELL SIDE PARTICULARLY SINCE THE END OF THE FIRST QUARTER SAID MICHAEL PAINCHAUD DIRECTOR OF RESEARCH FOR MARKET PROFILE THEOREMS A SEATTLE PROVIDER OF EQUITY RESEARCH TO MONEY MANAGERS AT SYNOPSYS HEADQUARTERS IN MOUNTAIN VIEW CALIF THE SELLING CLEARLY INTENSIFIED LAST MONTH SEC DATA INDICATE CHAIRMAN HARVEY JONES SLASHED HIS DIRECT HOLDINGS BY TWOTHIRDS SELLING 50000 SHARES ON JULY 29 AT AN AVERAGE PRICE OF 4950 MR JONES IN AN INTERVIEW SAID THE SALES HIS BIGGEST EVER WERE MOTIVATED SOLELY BY HIS DESIRE TO DIVERSIFY HIS PORTFOLIO MR JONES CHIEF EXECUTIVE OFFICER SINCE 1987 AND CHAIRMAN SINCE DECEMBER SAID THE COMPANY WHICH DEVELOPS AND MARKETS HIGHLEVEL DESIGNAUTOMATION SOFTWARE FOR DESIGNERS OF INTEGRATED CIRCUITS AND ELECTRONIC SYSTEMS WORLDWIDE WAS DOING EXTREMELY WELL AND THAT ITS MARKET SHARE WAS VERY STABLE I'VE BEEN IN THE PROCESS OF DIVERSIFYING MY PORTFOLIO FOR SOME TIME HE SAID ADDING THAT HE HOLDS A NUMBER OF EXERCISABLE OPTIONS TO ACQUIRE MORE SYNOPSYS SHARES JOINING MR JONES IN DISPOSING OF COMPANY STOCK IN OPEN MARKET NONOPTIONRELATED SALES IN LATE JULY WERE THREE OTHER OFFICERS AND TWO DIRECTORS SEC FILINGS SHOW WHAT IS NOTABLE ABOUT THESE SALES MARKET EXPERTS SAY IS THAT THEY INVOLVE THE REDUCTION OF HOLDINGS IN THE COMPANY AS OPPOSED TO OPTIONBASED DISPOSALS THAT DOMINATED SELLING AT THE CONCERN EARLIER THIS YEAR COMPANY PRESIDENT AART DE GEUS SOLD 35000 SHARES OR JUST UNDER 10 OF HIS HOLDINGS FROM JULY 23 TO JULY 26 AT AN AVERAGE PRICE OF 49 THE SALE WAS HIS LARGEST FOR A SINGLE MONTH DIVISIONAL OFFICER DWIGHT MORITA SOLD 10000 SHARES OR ABOUT 9 OF HIS STAKE ON JULY 27 AT 4969 EACH DIVISIONAL OFFICER PENELOPE HERSCHER SOLD HER ENTIRE STAKE OF 10000 SHARES FOR AN AVERAGE 4825 AROUND THE SAME TIME DIRECTOR STEVEN WALSKE ALSO DISPOSED OF HIS ENTIRE STAKE SELLING 10000 SHARES AT 4875 EACH ON JULY 26 DIRECTOR JEFFREY WEST SOLD 75 OF HIS HOLDINGS OR 10000 SHARES AT 4875 APIECE ON JULY 30 OPTIONRELATED SALES ALSO PICKED UP IN VOLUME IN LATE JULY THE DATA SHOW DIVISIONAL OFFICER BRIAN CONNORS SOLD OFF HIS ENTIRE STAKE OF NEARLY 7000 SHARES AT AN AVERAGE PRICE OF 4875 FOLLOWING THE EXERCISE OF OPTIONS CHIEF FINANCIAL OFFICER BROOKE SEAWELL ALSO UNLOADED HIS ENTIRE STAKE 4000 SHARES AT 4475 EACH AFTER EXERCISING OPTIONS TWO ADDITIONAL OFFICERS HAVE INDICATED TO THE SEC THAT THEY PLAN TO SELL STOCK IN AUGUST THERE WAS CLEARLY AN INCREASE IN THE AVERAGE RATE OF SELLING IN JULY SAID DAVID COLEMAN EDITOR OF VICKERS WEEKLY INSIDER REPORT IN WASHINGTON DC A UNIT OF ARGUS RESEARCH GROUP THE FOUR SELLOUTS THOSE WHO SOLD ALL THEIR SHARES SEND A STRONG WARNING SIGNAL ANALYSTS WHO FOLLOW THE COMPANY SAID THE GOGO STOCK MAY SOON ENCOUNTER SELLING PRESSURE FROM THE OUTSIDE BECAUSE IN THEIR VIEW MUCH OF THE GOOD NEWS HAS ALREADY BEEN DISCOUNTED I'M NOT SUGGESTING THAT THE STOCK IS ABOUT TO FALL OFF A CLIFF BUT THE MARKET HAS RATHER FULLY DISCOUNTED PROSPECTS SAID ROBERT HERWICK AN ANALYST WITH HAMBRECHT & QUIST IN SAN FRANCISCO THIS IS A COMPANY THAT HAS PENETRATED ITS MARKET VERY RAPIDLY BUT THAT MARKET IS OF A FINITE SIZE OF AROUND 500 MILLION MR HERWICK SAID ADDING PEOPLE HAVE BEEN LOOKING AT SYNOPSYS'S MOMENTUM AND SAYING THAT THE COMPANY WILL GROW AT THIS RATE FOREVER IT WON'T THAT WILL BECOME MORE EVIDENT OVER THE COURSE OF NEXT YEAR MR HERWICK PREDICTED THAT IN SPITE OF THE COMPANY'S EXCELLENT MANAGEMENT AND EXCELLENT TECHNOLOGY SYNOPSYS'S QUARTERLY REVENUE GROWTH RATE WILL SLOW FROM RECENT LEVELS ABOVE 80 TO RATES OF 50 OR LESS BY THE END OF THE NEXT FISCAL YEAR ENDING SEPTEMBER 1994 OTHER ANALYSTS SAID THAT THE MOMENTUM BEHIND SYNOPSYS EARNINGS REVENUE AND SHAREPRICE GROWTH IS SET TO CONTINUE IT'S A MOMENTUM STOCK AND AS LONG AS THE MOMENTUM CONTINUES INVESTORS WILL WANT TO OWN IT SAID STEVEN MILUNOVICH AN ANALYST WITH MORGAN STANLEY THEY'VE BEEN BEATING EARNINGS ESTIMATES AS LONG AS THEY CONTINUE TO DO THAT THE STOCK WILL MOVE HIGHER HE PREDICTED NOTING THAT THE COMPANY HAS PRODUCED CONSISTENTLY HIGHQUALITY EARNINGS SUPPORTED BY STRONG ORDERS AND BACKLOGS MR JONES THE COMPANY'S CHAIRMAN SAID HE IS COMFORTABLE WITH ANALYSTS' PROJECTIONS FOR EARNINGS IN THE CURRENT FISCAL YEAR ESTIMATES RANGE FROM 83 TO 85 CENTS A SHARE WHICH COMPARES WITH 48 CENTS A SHARE REPORTED LAST YEAR ANALYSTS LIKE MESSRS HERWICK AND MILUNOVICH APPLAUDED SYNOPSYS'S RECENT EFFORTS TO EXPAND AGGRESSIVELY BEYOND ITS CORE SYNTHESIS SOFTWARE BUSINESS A SOFTWARE SYSTEM THAT ALLOWS INTEGRATED CIRCUIT DESIGNERS TO DESIGN CIRCUITS AT A MORE ABSTRACT LEVEL AND INTO WHAT IS KNOWN IN THE INDUSTRY AS TOP DOWN DESIGN SIMULATION TOOLS SUCH A MOVE HOWEVER IS DESTINED TO BRING THE COMPANY INTO COMPETITION WITH OTHER PROVIDERS OF SIMULATION SOFTWARE THEY SAID IN CONTRAST TO THE SYNTHESIS MARKET THAT IT HANDILY DOMINATES 9308250160 930825 WHO'S NEWS ANALYSTS INTERNATIONAL CORP ANALYSTS INTERNATIONAL CORP MINNEAPOLIS MARGARET LOFTUS A PRINCIPAL IN THE BUSINESS CONSULTING FIRM OF LOFTUS BROWNWESCOTT INC WAS NAMED TO THE BOARD OF THIS COMPUTER SOFTWARE SERVICES COMPANY MS LOFTUS 49 YEARS OLD SUCCEEDS FRANK MULLANEY 70 WHO RETIRED 9308250159 930825 WHO'S NEWS RUBBERMAID INC RUBBERMAID INC WOOSTER OHIO WILLIAM D MAROHN 53YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER OF WHIRLPOOL CORP WAS ELECTED A DIRECTOR OF THIS MAKER OF PLASTIC AND RUBBER PRODUCTS INCREASING THE BOARD TO 11 MEMBERS 9308250158 930825 WHO'S NEWS OLSTEN CORP OLSTEN CORP WESTBURY NY MARTIN GELERMAN 57 YEARS OLD VICE PRESIDENT HUMAN RESOURCES OF THIS TEMPORARY HELP AND HEALTHCARE SERVICES COMPANY WAS NAMED SENIOR VICE PRESIDENT A NEW POSITION 9308250157 930825 TECHNOLOGY & HEALTH NOVELL SYNOPTICS TO LINK COMPUTER NETWORKING EFFORTS BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL IN A MOVE THAT COULD HELP SIMPLIFY THE COMPLEX PROCESS OF INSTALLING SYSTEMS FOR COMPUTERS TO COMMUNICATE WITH ONE ANOTHER NOVELL INC AND SYNOPTICS COMMUNICATIONS INC ARE TEAMING UP TO INTEGRATE PRODUCTS AND SHARE TECHNOLOGY THE ALLIANCE TO BE ANNOUNCED TODAY IN SAN FRANCISCO LINKS NOVELL'S NETWORKSOFTWARE KNOWHOW WITH MACHINERY BY SYNOPTICS THAT PHYSICALLY TIES COMPUTERS TOGETHER THROUGH INTELLIGENT HUBS THE COMPANIES WHICH HAVE COOPERATED EXTENSIVELY IN THE PAST ARE AGREEING TO PROVIDE FOR JOINT RESEARCH AND DEVELOPMENT AND TO COOPERATE IN TRAINING AND CUSTOMER SUPPORT ANALYSTS SAY THE ALLIANCE WOULD HELP SIMPLIFY THE TASK OF PATCHING TOGETHER COMPUTER NETWORKING SYSTEMS WITH PRODUCTS SUCH AS THE SOFTWARE AND HUB MACHINERY THAT MUST BE PURCHASED FROM DIFFERENT COMPANIES WHEN PROBLEMS OCCUR CUSTOMERS HAVE HAD TO SEEK OUT THE RESPECTIVE COMPANIES FOR HELP ALTHOUGH CUSTOMERS STILL WOULD HAVE TO BUY PIECES OF THE NETWORKING SYSTEM SEPARATELY ANALYSTS SAY THE ALLIANCE WOULD ENABLE EITHER NOVELL BASED IN PROVO UTAH OR SYNOPTICS OF SANTA CLARA CALIF TO ANSWER QUESTIONS RATHER THAN THE CUSTOMER HAVING TO GO TO EACH COMPANY EVENTUALLY THEY ADD IT COULD LEAD TO ONESTOP SHOPPING FOR NETWORK SYSTEMS IF YOU CAN SIMPLIFY IT MAKES THEIR CUSTOMERS' LIFE EASIER AND IT MAKES THEM BUY MORE NETWORK PRODUCTS SAID MICHAEL HOWARD PRESIDENT OF INFONETICS RESEARCH INC A COMPUTER RESEARCH AND CONSULTING FIRM IN SAN JOSE CALIF SINCE EACH COMPANY IS A LEADER IN ITS FIELD ANALYSTS THINK THE ALLIANCE WILL STRENGTHEN THEIR COMPETITIVE EDGE AS WELL AS HELP THEM BETTER NAVIGATE THE RAPIDLY EVOLVING NETWORKING TECHNOLOGY WE'RE GOING THROUGH A SEA CHANGE AND NAVIGATING THAT SEA CHANGE ALONE IS VERY DIFFICULT SAID JIM HARRISON A NETWORKING VICE PRESIDENT OF META GROUP A RESEARCH AND ADVISORY CONCERN IN RESTON VA BY WORKING MORE CLOSELY TOGETHER NOVELL AND SYNOPTICS HOPE TO BRING TO MARKET FASTER MORE POWERFUL NETWORK SYSTEMS THAT WILL HELP ACCELERATE THE DEPLOYMENT OF SUCH EMERGINGTECHNOLOGY APPLICATIONS AS VIDEOCONFERENCING AND MULTIMEDIA IF WE CAN SPEED UP INDUSTRY GROWTH WE WILL BOTH BENEFIT HANDSOMELY SAID KANWAL REKHI A NOVELL EXECUTIVE VICE PRESIDENT ANDY LUDWICK SYNOPTICS PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID HIS COMPANY HAS DEVELOPED A DIGITAL COMMUNICATIONS METHOD FOR SIMULTANEOUSLY TRANSMITTING VOICE VIDEO AND DATA MORE THAN 15 TIMES FASTER THAN CONVENTIONAL MEANS MR LUDWICK SAID SYNOPTICS WOULD WORK WITH NOVELL TO DEVELOP SOFTWARE TO TAKE ADVANTAGE OF THE NEW METHOD 9308250156 930825 INTERNATIONAL MERCEDES TO CUT GERMAN FORCE BY 14000 JOBS CAR AND TRUCK MAKER SEES 5933 MILLION SAVINGS FROM 1994 REDUCTION BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL GERMAN CAR AND TRUCK MAKER MERCEDESBENZ AG SAID IT PLANS TO ELIMINATE 14000 JOBS FROM ITS GERMAN OPERATIONS NEXT YEAR COMING AMID A VICIOUS DOWNTURN IN THE EUROPEAN CAR AND TRUCK MARKETS THE PROGRAM SPOTLIGHTS MERCEDES'S SCRAMBLE TO RAISE PRODUCTIVITY AND SLASH COSTS PARTICULARLY IN ITS EXPENSIVE GERMAN LABOR BASE MERCEDES THE MOTOR DIVISION OF GERMAN CONGLOMERATE DAIMLERBENZ AG SAID THE MEASURE WILL SAVE THE COMPANY MORE THAN ONE BILLION MARKS 5933 MILLION IN OPERATING COSTS AUTOMOTIVEINDUSTRY ANALYSTS HAILED THE DECISION AS A MUCHNEEDED MOVE TO GET THE LUXURY CAR AND TRUCK MAKER IN LINE WITH GLOBAL COMPETITIVE STANDARDS MERCEDES IS CURRENTLY CONSIDERED TO BE A BENCHMARK FOR HIGHCOST PRODUCTION IN THE CAR AND TRUCK INDUSTRY SAID KARL LUDVIGSEN OF LUDVIGSEN ASSOCIATES LTD A LONDON AUTOINDUSTRY CONSULTANT THIS IS VERY POSITIVE AS AN INDICATION THAT THE COMPANY IS SERIOUS ABOUT COMING TO GRIPS WITH ITS COSTS HE SAID GERMAN AUTO WORKERS ARE THE WORLD'S MOST EXPENSIVE COSTING AROUND 47 MARKS AN HOUR IN WAGES AND BENEFITS NEWS OF MORE JOB CUTS WASN'T OUT OF THE BLUE BUT THE AMOUNT WAS LARGER THAN EXPECTED MERCEDES ALREADY SLASHED SOME 14000 JOBS IN 1992 AND IS TRIMMING 8400 MORE THIS YEAR BUT THE JOB CUTS TARGETED FOR 1994 WILL PROBABLY BE MORE PAINFUL AS EARLY RETIREMENT AND ATTRITION WON'T BE ENOUGH TO PREVENT OUTRIGHT LAYOFFS ESPECIALLY IN THE COMMERCIAL TRUCK DIVISION IN ADDITION MERCEDES IS TRYING TO GET LABOR REPRESENTATIVES TO AGREE TO TRIM THE SOCIAL BENEFITS WORKERS RECEIVE AND TO TIE CHRISTMAS AND OTHER BONUSES TO THE COMPANY'S PROFIT MERCEDES STILL NEEDS TO COMPLETE UNION NEGOTIATIONS ON THE JOB CUTS AND THE CONCESSIONS IT WANTS THE UNIONS REMAIN STRONG BUT THE SEVERITY OF THE AUTO SECTOR'S WOES AND CONCERN OVER SLUMPING GERMAN INDUSTRIAL COMPETITIVENESS ARE HELPING COMPANIES LEAN ON LABOR AND WIN SUCH SETTLEMENTS THE COMPANY PREVIOUSLY SIGNALED IT WOULD ALSO CUT 20 OF ITS MANAGEMENT STAFF AND HAS RESTRUCTURED ITS HIERARCHY MERCEDES CHAIRMAN HELMUT WERNER SAID THE COMPANY MUST CONTINUE TO SEEK LEANER MORE EFFICIENT PRODUCTION METHODS TO OFFER CAR BUYERS BETTER VALUE MR WERNER CITED THE NEW AGGRESSIVELY PRICED CCLASS MODEL MERCEDES AS THE FIRST STEP IN THAT DIRECTION THE PROBLEM FOR MERCEDES ISN'T JUST HAVING TO CUT COSTS THEY HAVE BEEN LOSING THEIR SHIRT IN THE EUROPEAN CAR MARKET WITH MARKET PENETRATION AT AN ALLTIME LOW THIS YEAR SAID PETER SCHMIDT JOINT MANAGING DIRECTOR OF AUTOMOTIVE INDUSTRY DATA LTD A UNITED KINGDOM CONSULTING CONCERN IN MORE BUOYANT YEARS MERCEDES COULD ALWAYS FIND A MARKET FOR ITS LUXURY CARS BUT A SEVERE EUROPEAN RECESSION HAS BATTERED SALES OF THE HIGHPRICED AUTOMOBILES HE NOTED INDEED WHILE EUROPEAN CAR SALES PLUNGED 175 IN THE FIRST HALF COMPARED WITH 1992 THE STEEPEST PLUNGE SINCE WORLD WAR II MERCEDES REPORTED AN EVEN STEEPER DROP OF 289 FURTHER COMPOUNDING MERCEDES'S PROBLEMS IS THE SIMULTANEOUS CRASH OF THE MARKET FOR COMMERCIAL TRUCKS WHICH USUALLY DOESN'T MOVE IN THE SAME DIRECTION AS THE CAR MARKET ANALYSTS NOTED THE UNPRECEDENTED SLUMP IN BOTH MARKETS SIMULTANEOUSLY REALLY HITS MERCEDES BELOW THE BELT MR SCHMIDT SAID ANALYSTS SAID THEY EXPECTED THE STOCK MARKET TO REACT WELL TO THE JOBCUT ANNOUNCEMENT AS A SIGNAL OF MERCEDES'S COMMITMENT TO RESTRUCTURING BUT IN LIGHT OF SUBSTANTIAL GAINS MADE BY THE STOCK IN RECENT SESSIONS THERE WON'T NECESSARILY BE A LARGE JUMP IN RESPONSE TO THE NEWS WHICH CAME AFTER THE CLOSE OF TRADING YESTERDAY ANALYSTS SAID THE COMPANY'S SHARES CLOSED YESTERDAY IN FRANKFURT AT 725 MARKS OFF 050 MARK 9308250155 930825 WHO'S NEWS WORTHINGTON INDUSTRIES INC WORTHINGTON INDUSTRIES INC COLUMBUS OHIO DONALD G BARGER JR 50 YEARS OLD WAS NAMED VICE PRESIDENT OF FINANCE AND CHIEF FINANCIAL OFFICER OF THIS MANUFACTURER OF METAL AND PLASTIC PRODUCTS THE APPOINTMENT IS EFFECTIVE SEPT 1 MR BARGER WHO CURRENTLY SERVES AS VICE PRESIDENT AND CORPORATE CONTROLLER AT BF GOODRICH CO AKRON OHIO WILL SUCCEED JOSEPH H STEGMAYER 42 WHO RESIGNED ON JULY 19 TO BECOME PRESIDENT AND CHIEF OPERATING OFFICER OF CLAYTON HOMES INC KNOXVILLE TENN 9308250154 930825 WHO'S NEWS FALCON OIL & GAS CO FALCON OIL & GAS CO HOUSTON JAY H GOLDING WAS NAMED CHAIRMAN FILLING A VACANCY LEFT BY EDWARD RYAN WHOSE CONTRACT EXPIRED IN 1992 MR GOLDING 48 YEARS OLD IS A PRIVATE INVESTOR AND BUSINESSMAN AND FORMERLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF HIPORT INDUSTRIES A PACKAGING MANUFACTURER IN ADDITION PATRICK G BROMLEY 46 AND H FRED LEVINE 61 WERE ELECTED TO THE BOARD OF THIS OIL AND GAS EXPLORATION AND PRODUCTION COMPANY INCREASING THE BOARD'S SIZE TO EIGHT MR BROMLEY IS A FORMER MANAGING DIRECTOR OF DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND MR LEVINE IS VICE CHAIRMAN OF A UNIT OF COGEN TECHNOLOGIES A CLOSELY HELD COMPANY THAT OWNS AND OPERATES COGENERATION PLANTS IN THE US 9308250153 930825 WHO'S NEWS GENTEX CORP GENTEX CORP ZEELAND MICH HARLAN J BYKER DIRECTOR OF ELECTROCHEMICAL DEVELOPMENT WAS NAMED VICE PRESIDENT OF ELECTROCHEMICAL RESEARCH OF THIS MAKER OF ELECTROCHROMIC MIRRORS MR BYKER 38 YEARS OLD WAS ALSO ELECTED TO THE BOARD INCREASING ITS SIZE TO EIGHT MEMBERS 9308250152 930825 WHO'S NEWS STAR BANC CORP STAR BANC CORP CINCINNATI GUST J TOTLIS RESIGNED AS CHIEF FINANCIAL OFFICER OF THIS BANK HOLDING COMPANY HIS DUTIES WILL BE ASSUMED ON AN INTERIM BASIS BY TIMOTHY J FOGARTY 36 YEARS OLD A SENIOR VICE PRESIDENT MR TOTLIS 54 WILL JOIN A MIDWEST INSURANCE COMPANY WHICH HE DECLINED TO IDENTIFY 9308250151 930825 WHO'S NEWS ADVANTA CORP ADVANTA CORP HORSHAM PA ROBERT A MARSHALL 52 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT A NEW POSITION AT THIS DIRECT MARKETER OF CONSUMER FINANCIAL SERVICES HE HAD BEEN SENIOR VICE PRESIDENT AND REMAINS PRESIDENT OF THE CREDIT CARD DIVISION OF ADVANTA'S COLONIAL NATIONAL BANK USA UNIT 9308250150 930825 APPEALS JUDGES SKEPTICAL OF CLAIMS NAFTA REQUIRES ENVIRONMENTAL STUDY BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL APPEALS COURT JUDGES EXPRESSED SKEPTICISM AT ARGUMENTS THAT THE CLINTON ADMINISTRATION NEEDS TO FILE AN ENVIRONMENTAL IMPACT STATEMENT BEFORE PROCEEDING WITH THE NORTH AMERICAN FREE TRADE AGREEMENT THE COURT TOOK UP THE ISSUE AT ORAL ARGUMENTS WHEN THEY REVIEWED A DECISION BY A US DISTRICT COURT HERE THAT HAD BEEN CONSIDERED BY SOME TO BE A DEATH BLOW TO THE FREETRADE ACCORD JUDGE CHARLES RICHEY ON JUNE 30 HELD THAT ADMINISTRATION OFFICIALS WERE REQUIRED BY THE NATIONAL ENVIRONMENTAL POLICY ACT TO PREPARE A REPORT ON THE EFFECTS OF NAFTA WHICH COULD TAKE MONTHS OR EVEN YEARS THE AGREEMENT IS TO BE PRESENTED TO CONGRESS FOR APPROVAL THIS FALL AT THE APPELLATE HEARING IN A COURTROOM TEEMING WITH LAWYERS LOBBYISTS AND OTHER REPRESENTATIVES OF INTEREST GROUPS MEMBERS OF A THREEJUDGE PANEL OF THE US COURT OF APPEALS APPEARED SYMPATHETIC TO THE GOVERNMENT'S POSITION THAT THE LOWERCOURT RULING IMPROPERLY ENCROACHED ON EXECUTIVE POWER EVEN WHILE EXPRESSING CONCERN ABOUT THE ENVIRONMENTAL CONSEQUENCES OF THE ACCORD I THOUGHT IT WAS A VERY CLOSE CASE BEFORE THE ARGUMENT BUT THE CHANCES FOR THE GOVERNMENT APPEAR A GOOD DEAL STRONGER NOW SAID DONALD ELLIOTT A FORMER GENERAL COUNSEL FOR THE ENVIRONMENTAL PROTECTION AGENCY IN THE BUSH ADMINISTRATION WHO ATTENDED THE HEARING OTHER OBSERVERS ENVISIONED A RULING WHERE THE COURT WOULD REQUIRE AN ENVIRONMENTAL REPORT BUT LIMIT THE ABILITY OF GROUPS TO SUE OVER IT THAT WOULD STILL BE A VICTORY FOR THE ADMINISTRATION WHICH COULD THEN INCLUDE WHATEVER ENVIRONMENTAL DATA IT ALREADY HAS COLLECTED IN SUCH A REPORT THE COURT DIDN'T INDICATE WHEN IT WOULD ISSUE A RULING ALTHOUGH THE CASE IS PROCEEDING ON AN EXPEDITED SCHEDULE AND SOME OBSERVERS EXPECT A DECISION WITHIN A MONTH OR SO DESPITE ITS HIGH PROFILE THE CASE BOILS DOWN TO FAIRLY MUNDANE QUESTIONS OF ADMINISTRATIVE LAW THE PLAINTIFFS LED BY PUBLIC CITIZEN LITIGATION GROUP A RALPH NADER ORGANIZATION ARGUED THAT THE 1970 ENVIRONMENTAL LAW REQUIRED THE OFFICE OF THE US TRADE REPRESENTATIVE AS A FEDERAL AGENCY TO PREPARE AN ENVIRONMENTAL IMPACT REPORT THE GOVERNMENT HOWEVER ARGUED THAT THE CASE WASN'T PROPERLY SUBJECT TO JUDICIAL REVIEW UNDER ANOTHER FEDERAL LAW REQUIRING THAT AGENCY DECISIONS BE FINAL BEFORE BEING SUBJECTED TO COURT CHALLENGES THE AGREEMENT IT NOTED HASN'T EVEN GONE TO CONGRESS YET AT THE SAME TIME THE GOVERNMENT MAINTAINED THAT THE TRADE REPRESENTATIVE IS AN ARM OF THE PRESIDENCY AND THAT THE EXECUTIVE BRANCH HAS A SPECIAL STATUS UNDER THE ENVIRONMENTAL LAW DID PRESIDENT CLINTON APPLY AN ENVIRONMENTAL IMPACT STATEMENT WHEN HE PROPOSED HIS NEW TAX PLAN JUDGE A RAYMOND RANDOLPH ASKED AT ONE POINT DURING THE ARGUMENTS JUDGE PATRICIA M WALD SEEMED CONCERNED THAT THE ADMINISTRATION WAS ASKING FOR A RULING THAT THE ENVIRONMENTAL LAW CALLED NEPA NEVER APPLIES TO EXECUTIVE BRANCH DECISIONS EVEN THOUGH SOME PREVIOUS ADMINISTRATIONS HAVE SUBMITTED ENVIRONMENTAL STATEMENTS IN CONNECTION WITH PAST TREATIES AND INTERNATIONAL AGREEMENTS PUBLIC CITIZEN SAID SUCH A VIEW WOULD UPSET MORE THAN TWO DECADES OF ENVIRONMENTAL JURISPRUDENCE THIS IS A VARIATION ON THE TRUST US' ARGUMENT JUDGE WALD ASKED SOLICITOR GENERAL DREW S DAYS III WHO ARGUED THE GOVERNMENT'S CASE ANYTIME THE PRESIDENT IS INVOLVED DOES THAT MEAN NEPA DOES NOT APPLY I SUBMIT WE DON'T HAVE TO GO THAT FAR MR DAYS SAID ANOTHER TACK JUDGE WALD ACKNOWLEDGED GREAT SYMPATHY WITH SOME OF THE PUBLIC INTEREST GROUP'S ARGUMENTS BUT ADDED THAT I THINK YOUR BIGGEST JOB HERE FRANKLY IS OVERCOMING A 1992 US SUPREME COURT DECISION KNOWN AS THE FRANKLIN CASE IN THAT CASE THE COURT HELD IN PART THAT JUDGES ARE PRECLUDED FROM HEARING CHALLENGES TO ADMINISTRATIVE AGENCY DECISIONS WHERE THE FINAL ACT IS THAT OF THE PRESIDENT CHIEF JUDGE ABNER J MIKVA THE PANEL'S THIRD MEMBER QUESTIONED WHETHER THE LOWER COURT SHOULD HAVE HEARD THE CASE IN THE FIRST PLACE UNDER A SEPARATE ADMINISTRATIVE LAW DOCTRINE WHEREBY COURTS DECLINE TO INTERVENE IN CASES THAT TOUCH ON EXECUTIVE POWER AND FOREIGN AFFAIRS 9308250149 930825 LUKENS STAINLESSSTEEL CUT PLATE COATESVILLE PA LUKENS INC SAID IT WILL BEGIN PRODUCING STAINLESS STEEL CUT PLATE IN THE FOURTH QUARTER THE STEELMAKER NOW PRODUCES CARBONSTEEL PLATE AND STAINLESSSTEEL SHEET THE MARKET FOR THE STAINLESS PLATE IS 300 MILLION A YEAR LUKENS SAID 9308250148 930825 GLOBAL VIEW A FAILURE TO DEFINE FOREIGNPOLICY PLANS IS DOGGING CLINTON CRITICS AT HOME AND ABROAD QUESTION HIS TOUGHNESS AND WILL TO LEAD WORLD BUT HE SCORES SOME SUCCESSES BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON QUAGMIRE WAS HOW PRESIDENT CLINTON'S TOP POLITICAL AND MILITARY ADVISERS DESCRIBED BOSNIA LAST SPRING AFTER A HUMILIATING REBUFF FROM AMERICA'S ALLIES MR CLINTON HAD COME TO AGREE BUT IN EARLY JULY SITTING IN A TOKYO HOTEL LISTENING TO REPORTS FROM SERBBESIEGED SARAJEVO AIDES SAY THE PRESIDENT BEGAN THINKING ANEW ABOUT US INVOLVEMENT THE CITY HAD GONE FOR WEEKS WITHOUT WATER AND ELECTRICITY TYPHOID FAMINE AND THE FALL OF THE CAPITAL LOOMED THE HUMAN SUFFERING WAS TOO AWFUL TO IGNORE AND HIS REPUTATION AS A WORLD LEADER COULD BE DAMAGED INDELIBLY IF HE DID NOTHING NOW MORE THAN A MONTH LATER IT STILL ISN'T CLEAR WHETHER THE US AND ITS ALLIES WILL MAKE GOOD ON THEIR LATEST THREATS TO USE AIR STRIKES THE SERBS HAVE BEEN WORRIED ENOUGH TO EASE THEIR SIEGE SOMEWHAT BUT A CARVING UP OF BOSNIA SEEMS INEVITABLE AND NEITHER THE US NOR ITS ALLIES ARE EVEN CONTEMPLATING MILITARY ACTIONS TO PREVENT IT EVEN SO THERE IS A TOUGH TEST OF US RESOLVE TO COME IF A PARTITION ARRANGEMENT IS AGREED UPON PRESIDENT CLINTON WILL HAVE TO DECIDE WHETHER TO FULFILL HIS PLEDGE TO SEND GROUND FORCES TO SUPPORT A PEACEKEEPING MISSION FOR MR CLINTON GRASPING THE MANTLE OF INTERNATIONAL LEADERSHIP HASN'T BEEN EASY EVER SINCE HIS ELECTION HE AND HIS TOP FOREIGNPOLICY ADVISERS HAVE BEEN DOGGED BY QUESTIONS ABOUT WHETHER THEY HAVE THE STRENGTH OR THE FUNDAMENTAL WILL TO LEAD IN AN INCREASINGLY COMPLEX WORLD THE FLIPFLOPS OVER BOSNIA HAVE HEIGHTENED CONCERN THAT WASHINGTON ISN'T SURE WHAT REALLY MATTERS OR WHERE THE US SHOULD PUT ITS TROOPS AND TREASURE THE IMPRESSION OF AD HOCISM AND DRIFT HAS OVERSHADOWED EVEN DEFTLY HANDLED FOREIGNPOLICY AREAS NOTABLY RUSSIA NORTH KOREA AND WEAPONS PROLIFERATION PEOPLE IN WASHINGTON TEND TO BE MORE NEUROTIC ABOUT QUESTIONS LIKE THESE BUT IN EUROPE TOO WE'RE ASKING WHETHER THIS NEW CROWD REALLY HAS WHAT IT TAKES SAYS SIR MICHAEL HOWARD AN OXFORD UNIVERSITY MILITARY HISTORIAN MR CLINTON HAS DONE LITTLE TO ALLAY THESE CONCERNS HE HASN'T ANNOUNCED A CLEAR SET OF FOREIGNPOLICY PRIORITIES MAJOR POLICY CHANGES HAVE BEEN LEFT TO MEDIA LEAKS OR ELLIPTICAL RESPONSES AT PRESS CONFERENCES AS A RESULT THE PUBLIC DEBATE ON BOSNIA OR SOMALIA HAS GONE ON ALMOST TOTALLY WITHOUT HIS PARTICIPATION INDEED WITH NO ADVANCE EXPLANATION THE ADMINISTRATION THIS WEEK SENT 400 ARMY RANGERS TO SOMALIA WHERE FOUR US SOLDIERS WERE KILLED EARLIER THIS MONTH IN AN AMBUSH UNDERLYING BOTH THOSE CONFLICTS OR OTHERS YET TO COME ARE TWO FUNDAMENTAL QUESTIONS WHAT INTERESTS ARE IMPORTANT ENOUGH TO RISK COMMITTING OR MAINTAINING AMERICAN TROOPS ON THE GROUND AND WHEN OTHERS ARE WILLING TO COMMIT GROUND FORCES AND THE US ISN'T HOW CAN WASHINGTON EXPECT TO LEAD IT'S IMPORTANT TO TAKE CARE OF DISCRETE PROBLEMS AND THEY'VE DONE A LOT OF THAT SAYS MORTON ABRAMOWITZ PRESIDENT OF THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE BUT IT'S NOT CLEAR TO ME AND THEY HAVEN'T EXPLAINED TO THE PUBLIC WHAT THEY'RE REALLY ABOUT EXCEPT TO MAKE FOREIGN POLICY A POCKETBOOK ISSUE MR CLINTON'S ADVISERS SAY THE PRESIDENT IS DOING EXACTLY WHAT THE US PUBLIC WANTS DEVOTING MOST OF HIS ENERGIES AND HIS POLITICAL CAPITAL TO PROMOTING HIS DOMESTIC AGENDA BUT THAT LEVEL OF PRESIDENTIAL DETACHMENT DOES HAVE COSTS WITHOUT CLEAR DIRECTION FROM THE TOP FOREIGN POLICY ENDS UP BEING SET BY WHATEVER IS THE HEADLINE OR THE TELEVISION STORY OF THE DAY WARNS CHARLES WILLIAM MAYNES EDITOR OF FOREIGN POLICY MAGAZINE MR CLINTON AS THE FIRST POSTCOLD WAR PRESIDENT ARRIVED AT THE WHITE HOUSE WITHOUT A FOREIGNPOLICY BLUEPRINT IN PLACE WHILE HIS PREDECESSORS FACED A WELLDEFINED SOVIET MENACE MR CLINTON IS LEFT WITH THE SHARDS OF THE COMMUNIST EMPIRE A GLOBAL VIRUS OF ETHNIC WARFARE AND A SHADOWY NETWORK OF TERRORISTS AND ARMS DEALERS ERSTWHILE ENEMIES ARE SEEKING ECONOMIC AID AND COOPERATION WHILE LONGTIME FRIENDS SEEM TO THREATEN THE ECONOMIC FUTURE OF ESSENTIAL US INDUSTRIES IF GEORGE BUSH THE LEADER OF THE GULF WAR HAD BEEN REELECTED MANY OF THESE QUESTIONS AND DOUBTS WOULD BE EXACTLY THE SAME IT WOULD HAVE JUST TAKEN A LITTLE LONGER FOR THEM TO SURFACE SAYS LAWRENCE EAGLEBURGER MR BUSH'S LAST SECRETARY OF STATE INDEED THE LAST TIME THE WORLD HANDED A US PRESIDENT SO MANY BASIC CHANGES WAS AFTER WORLD WAR II WHEN HARRY TRUMAN HAD TO COME TO TERMS WITH THE DEFEAT OF FASCISM AND THE RISE OF COMMUNISM AND MR CLINTON'S TASK MAY TURN OUT TO BE EVEN HARDER THE POSTWAR DOCTRINE OF CONTAINMENT ESPOUSED BY GEORGE KENNAN THE US DIPLOMAT AND HISTORIAN SHOWED A CLEAR VISION FOR THE FUTURE A STRAIGHTFORWARD RESPONSE TO AN OBVIOUS THREAT TO US INTERESTS TODAY'S KALEIDOSCOPE OF MENACES DOESN'T LEND ITSELF TO SIMILAR FORMULATIONS MR CLINTON'S TOP ADVISERS AT LEAST ON PAPER HAVE COME UP WITH AN AMBITIOUS FOREIGNPOLICY AGENDA TRADE WEAPONS PROLIFERATION PEACEKEEPING REFORMING THE NORTH ATLANTIC TREATY ORGANIZATION AND THE UNITED NATIONS PROPPING UP DEMOCRACY IN RUSSIA BUT THE QUESTION IS WHETHER THEY CAN DELIVER EACH OF THE ADMINISTRATION'S VARIOUS GOALS THREATENS SOME CRUCIAL INTEREST OR REQUIRES A SIGNIFICANT OUTLAY OF FUNDS WITHOUT A CLEAR PRESIDENTIAL COMMITMENT AND A SUCCESSFUL EFFORT TO BUILD PUBLIC SUPPORT THE AGENDA COULD GET DERAILED THE ADMINISTRATION WAS REMINDED OF THAT WHEN A RECENT CLOSEDDOOR SENATE BRIEFING ON THE ADMINISTRATION'S NEW PEACEKEEPING POLICY HAD TO BE CUT SHORT BECAUSE OF BICKERING BETWEEN THE PENTAGON AND STATE DEPARTMENT IT'S AT MOMENTS LIKE THESE THAT A LITTLE MORE ENGAGEMENT FROM THE PRESIDENT WOULD BE APPRECIATED SAYS A US DIPLOMATIC OFFICIAL MR CLINTON'S BACKGROUND VIETNAM WAR PROTESTER FOREIGNPOLICY NEOPHYTE THERE WERE BOUND TO BE SOME DOUBTS ABOUT HIS TOUGHNESS ON INTERNATIONAL AFFAIRS HIS DECISION TO DRAW BOTH HIS SECRETARY OF STATE AND NATIONAL SECURITY ADVISER FROM THE CARTER ADMINISTRATION RAISED FURTHER QUESTIONS FROM CONSERVATIVE DEMOCRATS WHO FLOCKED TO HIM DURING THE CAMPAIGN AS WELL AS FROM REPUBLICANS AND SOME FOREIGNPOLICY EXPERTS MR CLINTON ENTERED THE OVAL OFFICE SAY AIDES WITH A COMMITMENT TO SUPPORT RUSSIAN DEMOCRACY AND AN INSTINCTIVE INTERNATIONALISM THAT PLACED TRADE AND ECONOMICS ATOP A LIST OF MORE TRADITIONAL FOREIGNPOLICY PRIORITIES BUT BEYOND THAT HE HAS LIMITED HIS INVOLVEMENT IN FOREIGN AFFAIRS TO A NEEDTOCOPE BASIS IN HIS FIRST SEVEN MONTHS IN OFFICE CRISES IN RUSSIA BOSNIA AND HAITI HAVE DEMANDED INTENSE BUT BRIEF PERIODS OF MR CLINTON'S ATTENTION AS DID PREPARATIONS FOR THIS SUMMER'S ECONOMIC SUMMIT MR CLINTON'S RETICENCE ON FOREIGN AFFAIRS ALSO IS DUE TO A CERTAIN INSECURITY AND INEXPERIENCE ACCORDING TO AIDES IT HAS TAKEN HIM A WHILE TO GET USED TO BEING THE LEADER OF THE FREE WORLD SAYS ONE SENIOR US OFFICIAL WHEN THE PRESIDENT RETREATED FROM HIS SPRING INITIATIVE TO SUPPLY ARMS TO THE BOSNIAN MUSLIMS AND MOUNT AIR STRIKES AGAINST THE SERBS HE WAS THINKING MORE LIKE A GOVERNOR THAN THE LEADER OF THE FREE WORLD ADDS THE OFFICIAL THAT MISTAKE DAMAGED THE PRESTIGE OF BOTH MR CLINTON AND SECRETARY OF STATE WARREN CHRISTOPHER AIDES NOW SAY THAT THE LESSON IS SEARED ON EVERYONE'S MINDS AND THAT THE ERROR WON'T BE REPEATED MEANWHILE MR CLINTON GOT A MODEST BOOST FROM A STRONG PERFORMANCE AT THE GROUP OF SEVEN ECONOMIC SUMMIT IN JULY THOUGH INITIALLY UNENTHUSIASTIC MR CLINTON WAS PERSUADED BY MR CHRISTOPHER TO BROADEN THE TRIP'S FOCUS AND ADDRESS QUESTIONS ABOUT AMERICA'S ROLE IN ASIA MR CLINTON ENDED UP ENJOYING THE ASIAN FORAY AND MADE SOME PRELIMINARY BREAKTHROUGHS ON TRADE INDEED MR CLINTON IS SO SATISFIED THAT ONE AIDE PREDICTS HE WILL RETURN TO ASIA AS SOON AS NEXT YEAR MR CLINTON HAS DELEGATED MOST FOREIGNPOLICY RESPONSIBILITIES TO MR CHRISTOPHER AND TO NATIONAL SECURITY ADVISER ANTHONY LAKE DEFENSE SECRETARY LES ASPIN CHOSEN BECAUSE OF HIS CONCEPTUAL POWERS AND A REPUTATION FOR TOUGHNESS HAS PROVED SOMEWHAT LESS OF A PLAYER THAN EXPECTED BECAUSE HE HAS BEEN FORCED TO DEAL WITH THE ISSUE OF HOMOSEXUALS IN THE MILITARY BASE CLOSINGS AND HIS OWN MEDICAL PROBLEMS BOTH MESSRS CHRISTOPHER AND LAKE SAY AIDES HAVE THE PRESIDENT'S CONFIDENCE AND HIS EAR WHENEVER THEY NEED IT MR CHRISTOPHER MANAGED THE VICEPRESIDENTIAL SEARCH AND HIS POLITICAL JUDGMENTS ARE ESPECIALLY VALUED BY THE PRESIDENT MR LAKE A VIETNAM DOVE TURNED NEWWORLD INTERVENTIONIST MAY BE CLOSER TO MR CLINTON PHILOSOPHICALLY YET NEITHER MR LAKE NOR MR CHRISTOPHER IS SEEN AS HAVING THE PERSONAL CHARISMA TO FULLY PLAY THE SURROGATE'S ROLE AND BOTH MEN HAVE BEEN CRITICIZED FOR NOT PUSHING MR CLINTON TO MAKE AND STICK TO TOUGH DECISIONS MR CHRISTOPHER HAS BEEN FAULTED BOTH WITHIN THE STATE DEPARTMENT WHERE HE HAS FACED A REBELLION OVER BOSNIA POLICY AND OUTSIDE FOR FAILING TO EXERT STRONG LEADERSHIP AND AIDES SAY MR CHRISTOPHER IS CONCERNED ENOUGH ABOUT THE PERCEPTION OF FOREIGNPOLICY DRIFT THAT STARTING IN THE FALL HE WILL GIVE A SERIES OF SPEECHES IDENTIFYING THE ADMINISTRATION'S INTERNATIONAL PRIORITIES BEYOND WINNING SUPPORT TO PROP UP RUSSIA'S REFORM MOVEMENT MR CLINTON'S PERSONAL PRIORITY THE TEAM HAS HAD SEVERAL OTHER CLEAR SUCCESSES THEY HAVE KEPT THE ANTIIRAQ COALITION IN PLACE THEY HELPED NEGOTIATE A DIFFICULT POLITICAL SETTLEMENT IN HAITI AND APPEAR COMMITTED TO SEEING IT THROUGH MR CHRISTOPHER RECENTLY BROKERED A TRUCE IN SOUTHERN LEBANON MOST IMPORTANT THEY APPEAR OPEN TO THE NEED FOR CHANGE AT THE UN NATO AND IN ASIA'S SECURITY STRUCTURES THESE PEOPLE HAVE INHERITED A MUCH MORE UNCERTAIN WORLD AND THEY SEEM TO UNDERSTAND IT SAYS FRANCOIS HEISBOURG A FRENCH DEFENSE ANALYST THE ADMINISTRATION TEAM'S MOST SERIOUS RETHINKING SO FAR HAS BEEN IN THE AREAS OF NONPROLIFERATION AND PEACEKEEPING THE TEAM HAS PRESSED THE RUSSIANS TO LIMIT THE EXPORT OF MISSILE TECHNOLOGY AND HAVE KEPT UP PRESSURE ON UKRAINE TO MAKE SURE IT DOESN'T BACKSLIDE ON A COMMITMENT TO GIVE UP ITS NUCLEAR WEAPONS THE US HAS ALSO TAKEN THE LEAD IN PRESSING NORTH KOREA TO STAY INSIDE THE NUCLEARNONPROLIFERATION TREATY ON PEACEKEEPING THE ADMINISTRATION ALSO HAS MADE SOME PROGRESS AT THE OPENING OF THE UN GENERAL ASSEMBLY NEXT MONTH MR CLINTON IS EXPECTED TO UNVEIL A NEW POLICY WHICH WILL OFFER US TRAINING FOR INTERNATIONAL PEACEKEEPERS AS WELL AS HELP IN ESTABLISHING A MUCHNEEDED COMMANDANDCONTROL CENTER AT THE UN THE ADMINISTRATION ALSO IS WILLING TO ALLOW US TROOPS TO SERVE UNDER UN COMMAND BUT BECAUSE OF THE OBJECTIONS OF THE PENTAGON IT ISN'T EXPECTED TO FORMALLY EARMARK ANY US TROOPS TO A STANDING UN FORCE AND IF THE ADMINISTRATION DOESN'T SOON SETTLE ITS INTERNAL BUDGETARY SQUABBLES THE US COULD BE 1 BILLION IN ARREARS TO THE UN PEACEKEEPING BUDGET BY THE END OF NEXT YEAR THE MOST AGONIZING TEST OF PRESIDENT CLINTON'S LEADERSHIP MAY STILL BE THE MOST TRADITIONAL DECIDING WHEN AND UNDER WHAT CONDITIONS TO SEND AMERICA'S SONS AND DAUGHTERS INTO BATTLE WHILE ALWAYS DIFFICULT IT HAS BECOME EVEN MORE SO IN A WORLD WHERE US VITAL INTERESTS ARE NO LONGER EASILY DEFINED MR HEISBOURG THE DEFENSE ANALYST SAYS THAT TEST IS ONE THE US CAN'T SHY AWAY FROM WHILE YOU POINT TO BOMBS AND HIGH TECH TO PROVE YOUR MILITARY MIGHT WHAT WE SEE IS STILL A COUNTRY AFRAID TO PUT ITS YOUNG MEN AND WOMEN SERIOUSLY AT RISK ON THE GROUND HE SAYS YOU'RE NOT ON THE GROUND IN BOSNIA AND YOU'RE BARELY THERE IN SOMALIA THAT STILL REMAINS A KEY TEST FOR US LEADERSHIP WITH MR CLINTON COMMITTED TO SENDING AS MANY AS 20000 US TROOPS TO ENFORCE A TRUCE IN BOSNIA THAT TEST MAY COME SOON 9308250147 930825 WHO'S NEWS NEWS COMMUNICATIONS INC NEWS COMMUNICATIONS INC NEW YORK THIS PUBLISHER OF WEEKLY COMMUNITY NEWSPAPERS ELECTED JERRY FINKELSTEIN 77 YEARS OLD AND A DIRECTOR AS ITS FIRST CHAIRMAN MR FINKELSTEIN A DIRECTOR OF NATIONAL LAW PUBLISHING CO AND NEW YORK LAW PUBLISHING CO IS THE FORMER PUBLISHER OF THE NEW YORK LAW JOURNAL 9308250146 930825 CREDIT MARKETS TREASURY RALLY CONTINUES WITH STRONG BUYING AT TWOYEAR SALE BUT JUNK DEMAND WEAKENS BY THOMAS T VOGEL JR AND LAURA JERESKI STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK EVEN AS THE BOND MARKET RALLY ACCELERATES CRACKS ARE APPEARING IN THE MARKET FOR CORPORATE JUNK BONDS STRONG DEMAND AT THE TREASURY'S AUCTION OF TWOYEAR NOTES SPARKED A POWERFUL RALLY WHICH PUSHED THE YIELD OF THE BENCHMARK 30YEAR TREASURY BOND DOWN TO 619 ITS LOWEST SINCE 1977 THE 10YEAR NOTE YIELD DROPPED TO 554 ITS LOWEST SINCE MARCH 1971 BUT SOME WORRY THAT GOOD TIMES IN THE TREASURY MARKET WON'T TRANSLATE INTO MORE OF THE SAME FOR THE JUNK MARKET AFTER MONTHS OF GORGING AT A BUFFET TABLE LADEN WITH NEW JUNK BOND ISSUES MANY INVESTORS CANNOT TAKE ANOTHER BITE IN FACT SOME OF THEM ARE LEAVING THE BANQUET JUST AS WALL STREET UNDERWRITERS BRING IN EVEN MORE NEW JUNK BOND ISSUES PERHAPS AS MUCH AS 8 BILLION BY THE END OF SEPTEMBER A NUMBER OF MARKET ANALYSTS SAY THAT RECENT INDIGESTION IN THE JUNK BOND MARKET COULD BE A HARBINGER OF A VERY ROCKY ROAD IN THE MONTHS AHEAD IN THE LAST 10 DAYS THE VOLUME OF NEW ISSUES HAS OVERWHELMED BUYERS FORCING COMPANIES TO PAY MORE THAN THEY EXPECTED TO RAISE FUNDS AND PUTTING PRESSURE ON UNDERWRITERS TO SWAP OLDER JUNK BOND ISSUES FOR NEW HIGHERYIELDING ONES IN ORDER TO LURE FUND MANAGERS INTO THE NEW DEALS IT'S VERY TYPICAL IN THE JUNK BOND MARKET IN ITS LATER STAGES OF A CYCLE THAT SWAPPING BECOMES A VERY NORMAL COURSE OF ACTION FOR UNDERWRITERS WHO WANT TO GET DEALS DONE SAYS JOSEPH C BENCIVENGA A MANAGING DIRECTOR OF HIGHYIELD RESEARCH AT SALOMON BROTHERS INC SWAPPING WOULD BE UNNECESSARY IF INVESTOR DEMAND WERE STILL STRONG BUT IT ISN'T AND UNDERWRITERS ARE WILLING TO SACRIFICE POTENTIAL PROFITS IN ORDER TO GET BONDS OFF THEIR SHELVES EVERYONE IS SATURATED BY THE VOLUME AND THE INTENSITY REQUIRED TO STUDY THESE NEW DEALS SINCE MANY OF THE NEW OFFERINGS AREN'T PLAIN REFINANCINGS ANYMORE SAID KINGMAN PENNIMAN HEAD OF HIGHYIELD RESEARCH AT DUFF & PHELPS/MCM LESS THAN EIGHT MONTHS INTO THE YEAR THE TOTAL ISSUANCE OF JUNK BONDS OF 374 BILLION HAS ALREADY SURPASSED THE TOTAL ISSUANCE FOR ALL OF 1992 AND THAT DOESN'T COUNT PRIVATELY PLACED DEALS WHICH HAVE ZOOMED FROM NEXT TO NOTHING LAST YEAR TO OVER 11 BILLION SO FAR THIS YEAR BUT INVESTOR APPETITE FOR JUNK BONDS ISN'T WHAT IT WAS EARLIER THIS YEAR AND COMPANIES ARE BEING FORCED TO RAISE YIELDS TO ATTRACT ENOUGH INTEREST TO SELL THEIR NEW JUNK BONDS THE DUFF & PHELPS INDEX OF NEW JUNK OFFERINGS CURRENTLY YIELDS 928 036 PERCENTAGE POINT MORE THAN THE SEASONED JUNKISSUE INDEX SIX MONTHS AGO NEW ISSUES YIELDED AS MUCH AS 076 PERCENTAGE POINT LESS THAN SEASONED BONDS AT THE SAME TIME NEW CASH FLOWING INTO JUNK BOND MUTUAL FUNDS THE PRIMARY BUYERS OF HIGHYIELD CORPORATE BONDS APPEARS TO HAVE SLOWED AND THOSE FUND MANAGERS WITH MONEY TO INVEST HAVE BEEN BUYING MORE BONDS OF DEVELOPING NATIONS IN ORDER TO BOOST RETURNS SAYS DIANE VAZZA DIRECTOR OF HIGHYIELD RESEARCH AT STANDARD & POOR'S CORP INCOME FROM CORPORATE COUPON PAYMENTS ALSO DIPS IN THE SUMMER MONTHS TO ABOUT 17 BILLION A MONTH COMPARED WITH 28 BILLION IN HEAVIER MONTHS SUCH AS NOVEMBER AND DECEMBER ACCORDING TO RESEARCH BY FIRST BOSTON CORP SO THERE IS LESS MONEY CHASING MORE BONDS AS A RESULT SOME MUTUAL FUNDS ARE RAISING MONEY BY UNLOADING RECENTLY PURCHASED BONDS IN ORDER TO GRAB HIGHERYIELDING NEW ISSUES OTHERS ARE SWAPPING OLDER ISSUES WITH UNDERWRITERS EAGER TO SELL OUT NEW DEALS DEALERS SAY THE SALES VOLUME FROM MUTUAL FUNDS HAS TEMPORARILY PUSHED UP THEIR INVENTORIES AND DEPRESSED SOME BOND PRICES ON THE SECONDARY MARKET BY SEVERAL POINTS IT'S ALWAYS EASIER TO BUY THAN TO SELL SAID MR PENNIMAN AMONG THE BONDS THAT HAVE TAKEN A HIT ACCORDING TO MARTIN FRIDSON DIRECTOR OF HIGHYIELD RESEARCH AT MERRILL LYNCH & CO ARE ISSUES BY AMERICAN STANDARD INC AND FORT HOWARD CORP TO GET DEALS DONE ISSUERS HAVE BEEN FORCED TO JACK UP THE YIELDS OFTEN BEYOND THE UPPER LIMIT OF THE MARKET'S EXPECTATIONS AN OFFERING LAST WEEK FROM TRANSTEXAS GAS CORP WAS PRICED TO YIELD 105 013 PERCENTAGE POINT ABOVE EXPECTATIONS AMONG THE RECENT DEALS WITH HIGHERTHANEXPECTED YIELDS WAS A 190 MILLION OFFERING OF SENIOR SECURED SEVENYEAR NOTES FROM SWEETHEART CUP CO WHICH YIELDED 9625 COMPARED WITH EXPECTATIONS OF YIELDS RANGING FROM 925 TO 95 THE COMPANY ALSO SOLD 110 MILLION OF SENIOR SUBORDINATED NOTES AT A YIELD OF 1050 COMPARED WITH EXPECTATIONS OF YIELDS RANGING FROM 10 TO 1025 AT LEAST SOME OF THE INCREASE IN YIELDS CAN BE ATTRIBUTED TO THE CHANGING NATURE OF HIGHYIELD ISSUERS NEWCOMERS TO THE MARKET TEND TO BE OF LOWER CREDIT QUALITY MOST OF THE NEW ISSUERS ARE IN THE SINGLEB CREDIT CATEGORY SAID MS VAZZA OF S&P EARLIER THIS YEAR MOST JUNK BOND ISSUERS HOVERED JUST BELOW THE LOWEST S&P INVESTMENTGRADE RATING OF TRIPLEB AND TENDED TO USE NEW JUNK BOND FINANCING TO REFINANCE HIGHERCOUPON DEBT THAT DETERIORATION IN CREDIT QUALITY HAS WIDENED THE YIELD SPREADS OF LOWRATED BONDS TO TREASURYS SINCE THE BEGINNING OF THE MONTH YIELDS ON SINGLEBRATED BONDS HAVEN'T BUDGED WHILE THE 10YEAR TREASURY YIELD HAS PLUNGED WITH THE FOURTH QUARTER FAST APPROACHING SOME ANALYSTS SAY THAT NOW MAY NOT BE THE BEST TIME TO BUY JUNK BONDS ACCORDING TO STUDIES DISTRIBUTED BY LEHMAN BROTHERS TO ITS CLIENTS RECENTLY THERE IS A PATTERN OF LOWERRATED CREDITS UNDERPERFORMING HIGHERRATED CREDITS IN THE FOURTH QUARTER AND OUTPERFORMING THEM IN THE FIRST QUARTER A LEHMAN STUDY OF CORPORATE BOND RETURNS DATING BACK TO 1973 SHOWS THAT THIS SOCALLED FOURTHQUARTER EFFECT OCCURRED IN 13 OF THE 20 QUARTERS STUDIED ACCORDING TO JACK MALVEY A CORPORATE BOND STRATEGIST AT LEHMAN BONDS GIVEN THE LOWEST INVESTMENTGRADE RATING OF BAA BY MOODY'S INVESTORS SERVICE INC TENDED TO HAVE LOWER TOTAL RETURNS THAN THOSE RATED SINGLEA AND THOSE RATED SINGLEA TENDED TO HAVE LOWER TOTAL RETURNS THAN THOSE RATED DOUBLEA AND TRIPLEA WE'VE BEEN PREACHING TO INVESTORS TO BE MORE DEFENSIVE ON CREDIT QUALITY BEFORE GETTING INTO THE FOURTH QUARTER SAID MR MALVEY THE BAARATED BONDS HAD RETURNS THAT AVERAGED 026 PERCENTAGE POINT LESS THAN SINGLEA RATED BONDS DURING THE FOURTH QUARTER BUT THE PATTERN TENDS TO REVERSE ITSELF IN THE FIRST QUARTER ACCORDING TO MR MALVEY SINCE 1973 IN THE FIRST QUARTER BAARATED BONDS TENDED TO WIDELY OUTPERFORM HIGHERRATED BONDS 85 OF THE TIME ON AVERAGE THESE BAARATED BONDS HAD RETURNS 074 PERCENTAGE POINT GREATER THAN SINGLEA RATED BONDS DURING THE SAME QUARTER A SURGE OF DEMAND FOR US TREASURY SECURITIES FROM INVESTORS AND MUNICIPALITIES PUSHED PRICES SHARPLY HIGHER YESTERDAY AND SPURRED EXCEPTIONALLY STRONG BIDDING AT THE GOVERNMENT'S TWOYEAR NOTE AUCTION THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND ROSE NEARLY 3/8 POINT OR NEARLY 375 FOR A BOND WITH A 1000 FACE VALUE TO 100 22/32 ITS YIELD DROPPED TO 619 FROM 622 MARKET WATCHERS SAY THERE WASN'T ANY SINGLE DEVELOPMENT TO EXPLAIN THE RUSH OF BUYING THERE'S NOTHING YOU CAN REALLY POINT TO AS A TANGIBLE REASON SAID DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS HOWEVER TRADERS NOTED A GROWING BELIEF AMONG INVESTORS THAT THERE IS LITTLE LIKELIHOOD OF A FEDERAL RESERVE TIGHTENING IN COMING MONTHS WITH THE ECONOMY STILL SLUGGISH THE POSITIVE SENTIMENTS HELPED PRODUCE ONE OF THE BESTATTENDED TWOYEAR NOTE AUCTIONS IN YEARS THERE WAS JUST INCREDIBLE DEMAND SAID RON CONNORS HEAD OF GOVERNMENT BOND TRADING AT BEAR STEARNS & CO THE BIDTOCOVER RATIO A MEASURE OF DEMAND COMPARING BIDS TENDERED TO THOSE ACCEPTED WAS 349TO1 THE HIGHEST LEVEL SINCE APRIL 1991 AND WELL ABOVE THE 269TO1 AVERAGE FOR THE LAST 11 AUCTIONS BIDDING FOR THE NEW TWOYEAR NOTES CONTINUED WELL BEYOND THE AUCTION AND EVEN ACCELERATED AFTER THE RESULTS WERE ANNOUNCED BY THE END OF TRADING THE WHENISSUED TWOYEAR NOTE YIELD WAS 389 COMPARED WITH 398 LATE MONDAY ANOTHER MAJOR FORCE BEHIND THE RALLY YESTERDAY WAS BUYING OF SHORT AND INTERMEDIATE SECURITIES BY MUNICIPALITIES THAT BUYING HAS STEMMED FROM STATE AND LOCAL GOVERNMENTS REFUNDING OLDER HIGHERYIELDING DEBT BY ISSUING NEW SECURITIES UNTIL THE OLDER DEBT IS CALLED THE CASH RAISED BY THE NEW ISSUES IS PARKED IN TREASURYS YESTERDAY FOR EXAMPLE THE NEW YORK STATE POWER AUTHORITY SOLD 11 BILLION OF GENERALPURPOSE BONDS THE LARGEST BOND ISSUE IN ITS HISTORY THE PROCEEDS OF THE SALE WILL BE USED TO REFUND OLDER HIGHERYIELDING BONDS TRADERS ALSO REPORTED BUYING OF TREASURYS BY INVESTORS WHO HAVE FOUND THEIR PORTFOLIOS FILLING UP WITH CASH DUE TO FASTER AND FASTER PREPAYMENTS ON MORTGAGEBACKED SECURITIES THIS IS A MARKET THAT IS FEEDING ON ITSELF SAID MR JOHNSON OF FIRST CHICAGO PEOPLE ARE THROWING IN THE TOWEL AND CHASING YIELD THE BUYING FRENZY HAS BEEN BUILDING UP TO A CRESCENDO SAID MR CONNORS OF BEAR STEARNS TODAY THE TREASURY IS SLATED TO SELL 11 BILLION OF FIVEYEAR NOTES BUT GIVEN THE TENOR OF THE MARKET YESTERDAY TRADERS WEREN'T CONCERNED ABOUT WHETHER BUYERS WOULD SHOW UP IN LATE TRADING THE WHENISSUED FIVEYEAR NOTE STOOD AT 490 DOWN FROM 499 ON MONDAY HERE ARE THE RESULTS OF THE TWOYEAR SALE ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED AUG 31 AND MATURE AUG 31 1995 PRICES OF MUNICIPAL BONDS GENERALLY ENDED UNCHANGED TO 1/8 POINT LOWER SAGGING SLIGHTLY UNDER THE WEIGHT OF MORE THAN 2 BILLION OF FRESH SUPPLY IN SECONDARY TRADING THE NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY'S 560 MORTGAGE REVENUE BONDS OF 2013 ENDED 1/8 POINT LOWER AT 100 1/2 TO YIELD 550 BUT PHILADELPHIA'S 550 WATER AND WASTEWATER REVENUE BONDS OF 2014 ENDED UNCHANGED AT 98 1/2 TO YIELD 559 YESTERDAY'S NEW SUPPLY WAS DOMINATED BY THE NEW YORK STATE POWER AUTHORITY'S 11 BILLION OF SERIES CC GENERALPURPOSE REFUNDING AND NEWMONEY BONDS WHICH WERE SOLD THROUGH A PAINEWEBBER INC GROUP YIELDS INITIALLY RANGED FROM 350 IN 1996 TO 540 IN 2018 BUT SOME YIELDS WERE LOWERED 005 PERCENTAGE POINT DUE TO STRONG DEMAND FOLLOWING THAT REPRICING YIELDS RANGE FROM 345 IN 1996 TO 540 IN 2018 MOODY'S HAS RATED THE ISSUE DOUBLEA AND S&P HAS ASSIGNED A DOUBLEAMINUS RATING PRICES OF CURRENTPRODUCTION MORTGAGE SECURITIES ENDED HIGHER HIGHCOUPON ISSUES SUCH AS 8 SECURITIES AND ABOVE STILL SUFFERED FROM DOWNINCOUPON TRADES ACCORDING TO TRADERS A DOWNINCOUPON TRADE DEMONSTRATES A PREFERENCE FOR LOWER COUPONS AS INVESTORS SELL HIGHER COUPONS AND MOVE THE MONEY INTO LOWER COUPONS THOSE INVESTORS MOVING TOWARD LOWER COUPONS ARE DOING SO BECAUSE THEY FEAR LOW LONGTERM RATES WILL ENCOURAGE HOMEOWNERS TO REFINANCE THEIR HOME LOANS WHICH WOULD CAUSE MORTGAGE SECURITIES CREATED FROM THOSE LOANS TO BE CALLED AWAY EARLY OR PREPAID THE HIGHERCOUPON SECURITIES ARE PERCEIVED TO BE AT THE GREATEST RISK OF PREPAYMENT ELSEWHERE PRUDENTIAL SECURITIES ANNOUNCED THE CREATION OF A NEW TYPE OF BOND CLASS DESIGNED TO BE BOUGHT BY CREDIT UNIONS CREDIT UNIONS ARE ABLE TO BUY REAL ESTATE MORTGAGE INVESTMENT CONDUIT CLASSES BACKED BY FANNIE MAE AND FREDDIE MAC BUT PREFER BONDS WITH MOREPREDICTABLE MATURITIES THAN AVAILABLE IN THE AVERAGE REMIC CLASS THE PRUDENTIAL BOND CLASS GIVEN THE ACRONYM CUB FOR CREDIT UNION BOND IS STRUCTURED TO MATURE WITHIN 10 YEARS NO MATTER WHAT THE BONDS COULD HOWEVER STILL BE PREPAID SHOULD RATES CONTINUE TO SLIDE AND THE LOANS UNDERLYING THE POOL GET REPAID EARLY 9308250145 930825 TREASURY PLANNING SALE OF 236 BILLION IN BILLS WASHINGTON THE TREASURY PLANS TO PAY DOWN 175 MILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT 236 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 2378 BILLION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON DEC 2 1993 AND MARCH 3 1994 RESPECTIVELY THEY WILL BE AVAILABLE IN MINIMUM 10000 DENOMINATIONS THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794G73 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794J39 NONCOMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9308250144 930825 COMMODITIES COPPER FUTURES IN NEW YORK ARE PUSHED UP BY HEAVY BUYING OF OPTIONS IN LONDON MARKET BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL US COPPER FUTURES PRICES ROSE IN RESPONSE TO HEAVY BUYING OF OPTIONS CONTRACTS AT THE LONDON METALS EXCHANGE AT NEW YORK'S COMMODITY EXCHANGE THE ACTIVELY TRADED SEPTEMBER COPPER CONTRACT WAS UP 020 CENT TO 8640 CENTS A POUND STRONG DEMAND FOR NEARTERM OPTIONS CONTRACTS IN LONDON HAS LENT A FIRM TONE TO COPPER MARKETS WORLDWIDE DESPITE GENERALLY WEAK FACTORS AFFECTING THE SUPPLY OF AND DEMAND FOR THE INDUSTRIAL METAL ANALYSTS SAID IN THE SHORT TERM THE MARKET IS LIKELY TO CONTINUE TO RECEIVE SUPPORT FROM SOCALLED TECHNICAL FACTORS IN THE LONDON OPTIONS MARKET AT THE LME DEMAND FOR SEPTEMBER OPTIONS CONTRACTS WHICH ARE SET TO EXPIRE ON SEPT 1 HAS BEEN BRISK LARGELY BECAUSE OF THIS TRADING ACTIVITY THE PRICE OF COMEX'S SEPTEMBER FUTURES CONTRACT HAS SURGED MORE THAN THREE CENTS A POUND DURING THE PAST 10 DAYS IT LOOKS AS THOUGH THERE'S ROOM FOR ANOTHER PENNY OR TWO CENTS OF PRICE INCREASES OVER THE NEXT COUPLE OF WEEKS SAID FRED DEMLER METALS ECONOMIST FOR PAINEWEBBER INC STILL THE CURRENT STRENGTH OF THE MARKET ISN'T LIKELY TO LAST LONG UNLESS FUNDAMENTAL SUPPLYANDDEMAND FACTORS IMPROVE THE HOUSING AUTO AND OTHER INDUSTRIES USE COPPER WHILE IMPROVEMENTS IN THE US ECONOMY HAVE STIMULATED DEMAND FOR THE METAL HERE THE WEAKER ECONOMIES OF EUROPE AND JAPAN HAVE SAPPED DEMAND OVERSEAS ONE THING KEEPING A BIT OF A LID ON PRICES IS THAT WE ARE SEEING SOME PRODUCER SELLING SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH & CO THAT'S THE RESULT OF LACKLUSTER NEARTERM PHYSICAL DEMAND ESPECIALLY FROM EUROPE AND THE FAR EAST ANY IMPROVEMENT IN PHYSICAL DEMAND HOWEVER COULD SUSTAIN A LONGERTERM APPRECIATION OF FUTURES PRICES MR O'NEILL SAID IN ORDER FOR US TO SEE LASTING STRENGTH WE'LL NEED TO SEE AN IMPROVEMENT IN THE ASIAN PICTURE AN IMPROVEMENT IN THE JAPANESE ECONOMY AND AN INCREASE IN THEIR INDUSTRIAL DEMAND FOR COPPER IN OTHER COMMODITY MARKETS YESTERDAY ENERGY CRUDE AND PRODUCT PRICES DRIFTED LOWER IN LIGHT TRADING AS FEARS OVER THE POSSIBLE DISRUPTION OF OIL SUPPLIES FROM NIGERIA SUBSIDED NIGERIAN OIL WORKERS AND OTHERS VITAL TO THAT NATION'S ECONOMY THREATENED TO STRIKE IF NIGERIAN MILITARY RULER IBRAHIM BABANGIDA DIDN'T STEP DOWN FROM HIS POST BUT TRADERS BECAME LESS SKITTISH AFTER REPORTS LATER CONFIRMED BY GEN BABANGIDA'A SPOKESMAN THAT THE LEADER WOULD RELINQUISH POWER THURSDAY AND OVERSEE THE SWEARINGIN OF AN INTERIM GOVERNMENT OIL PRICES HOWEVER MIGHT FIND SOME SUPPORT TODAY BASED UPON DATA RELEASED LATE YESTERDAY BY THE AMERICAN PETROLEUM INSTITUTE SHOWING A SHARP DECLINE IN BOTH CRUDE AND GASOLINE STOCKS US GASOLINE STOCKS DECREASED BY 472 MILLION BARRELS TO 20324 MILLION BARRELS LAST WEEK WHILE CRUDE INVENTORIES FELL BY 486 MILLION BARRELS TO 34363 MILLION BARRELS US HEATING OIL STOCKS INCREASED 144 MILLION BARRELS TO 12396 MILLION BARRELS GRAINS AND SOYBEANS GRAIN FUTURES PRICES FELL ON PROFITTAKING AFTER A SURGE IN RECENT DAYS RELATED TO CONCERNS ABOUT THE POSSIBILITY OF AN EARLY FROST AT THE CHICAGO BOARD OF TRADE SOYBEANS FOR NOVEMBER DELIVERY WERE DOWN FOUR CENTS TO 6715 A BUSHEL WHILE THE DECEMBER CORN CONTRACT FELL 125 CENTS TO 24425 A BUSHEL THE CROP IN THE WESTERN AND NORTHERN CORN BELT IS IMMATURE BECAUSE OF THE HEAVY SPRING RAINS AND THEREFORE IS VULNERABLE TO DAMAGE FROM AN EARLY FROST BUT TRADERS CONCLUDED THAT IT IS TOO EARLY TO BOOST PRICES SUBSTANTIALLY BECAUSE OF CONCERN ABOUT FROST WHICH WOULDN'T COME UNTIL LATE SEPTEMBER AT THE EARLIEST ANALYSTS SAID 9308250143 930825 BELL ATLANTIC EXTENDS SHARE BUYBACK PLAN PHILADELPHIA BELL ATLANTIC CORP DIRECTORS EXTENDED A 1 BILLION SHARE REPURCHASE AUTHORIZATION THE NEW AUTHORIZATION COVERS 1994 AND 1995 THE TELECOMMUNICATION COMPANY'S EXISTING REPURCHASE PLAN EXPIRES AT THE END OF 1993 WHILE THE COMPANY HAS NO PLANS FOR SHARE REPURCHASES IN THE NEAR TERM THE SHARE REPURCHASE PROGRAM PROVIDES FLEXIBILITY TO RESPOND QUICKLY TO CHANGING MARKET CONDITIONS AND OTHER FACTORS BELL ATLANTIC SAID THE COMPANY HAS 435 MILLION COMMON SHARES OUTSTANDING 9308250142 930825 SHORT INTEREST IN OTC STOCKS SETS A RECORD MONTH'S TOTAL IS UP 52 TELECOMMUNICATIONS DELL ARE HIGH ON LIST BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST IN THE OVERTHECOUNTER STOCK MARKET SET A RECORD FOR THE SEVENTH CONSECUTIVE MONTH CLIMBING 52 TO 5874 MILLION SHARES IN MIDAUGUST ON THE NASDAQ NATIONAL MARKET WHERE MOST OF THE BIGGEST OTC ISSUES TRADE SHORT INTEREST INCREASED 53 TO 5574 MILLION SHARES FROM JULY'S 5296 MILLION SHORT SELLING AMONG THE SMALLEST STOCKS WHICH MAKE UP ABOUT A THIRD OF THE NASDAQ MARKET ALSO ROSE SHORT INTEREST IN THESE STOCKS CLIMBED TO 29999017 SHARES FROM 28856593 A MONTH EARLIER SHORT SALES ARE BETS THAT A STOCK'S PRICE WILL FALL AN INVESTOR SELLS BORROWED SHARES KNOWING THAT THEY EVENTUALLY MUST BE REPLACED FOR RETURN TO THE LENDER IF THE REPLACEMENT SHARES COST LESS THAN THOSE SOLD EARLIER THE SHORT SELLER MAKES A PROFIT SHORT INTEREST IS THE TOTAL OF SHARES SOLD SHORT AT ANY POINT IN TIME THIS MONTH'S FIGURES REPRESENT THOSE SALES REPORTED AS OF AUG 6 AND SETTLED AS OF AUG 13 THE NATIONAL MARKET'S SHORT INTEREST RATIO AS OF MIDAUGUST FELL TO 263 FROM 272 THE SHORT INTEREST RATIO FOR THE SMALLEST NASDAQ STOCKS ROSE TO 071 FROM 069 THE RATIO THE NUMBER OF TRADING DAYS AT THE MARKET'S AVERAGE VOLUME THAT WOULD BE REQUIRED TO CLOSE OUT THE TOTAL SHORT POSITION THROUGH SHARE PURCHASES IS A MEASURE OF TRADER SENTIMENT SOME ANALYSTS SUGGEST THE RATIO HAS WEAKENED AS AN INDICATOR BECAUSE OPTIONS AND OTHER DERIVATIVE STOCK PRODUCTS CAN BE USED TO HEDGE SHORT POSITIONS AMONG COMPANIES WITH THE LARGEST SHORT INTEREST POSITIONS CLASS A SHARES OF TELECOMMUNICATIONS INC ROSE TO 111 MILLION SHARES FROM 99 MILLION DELL COMPUTER CORP CLIMBED TO 82 MILLION SHARES FROM 77 MILLION NOVELL INC JUMPED TO 52 MILLION SHARES FROM 33 MILLION AND INTEL CORP ROSE TO 42 MILLON SHARES FROM 31 MILLION SHORT INTEREST IN NOBLE DRILLING CORP SURGED NEARLY 58 TO 51 MILLION SHARES EARLIER THIS MONTH THE HOUSTON OIL AND GAS DRILLING OPERATOR FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER 105 MILLION COMMON SHARES AND 125 MILLION OF SENIOR NOTES THE COMPANY SAID IT IS OFFERING ALL BUT 34000 OF THE SHARES WHICH WILL BE SOLD BY SHAREHOLDERS THE UNDERWRITERS ARE SALOMON BROTHERS INC JEFFERIES & CO AND SIMMONS & CO INTERNATIONAL NOBLE DRILLING FINISHED UNCHANGED YESTERDAY AT 10 1/8 NEXTEL COMMUNICATIONS INC'S SHORT INTEREST POSITION SURGED 2 1/2 TIMES TO TWO MILLION SHARES THE WIRELESS COMMUNICATIONS OPERATOR WHICH USES SPECIALIZED MOBILE RADIO KNOWN AS SMR LAST WEEK SOLD ABOUT 5259 MILLION OF SENIOR REDEEMABLE DISCOUNT NOTES DUE 2003 MERRILL LYNCH WAS THE LEAD UNDERWRITER OF THE OFFERING THE STOCK EDGED UP 1/8 TO 38 1/4 SNAPPLE BEVERAGE CORP'S SHORT INTEREST POSITION INCREASED 19 TO 46 MILLION SHARES LAST MONTH SNAPPLE'S SHORT INTEREST POSITION HAD FALLEN 37 TO REGISTER 39 MILLION SHARES YESTERDAY THE STOCK JUMPED 1 3/4 TO 48 THE FOLLOWING TABLE SHOWS THE NASDAQ ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST 100000 SHARES EXISTED AT MIDAUGUST OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST 50000 SHARES SINCE MIDJULY SEE ACCOMPANYING TABLES WSJ AUG 25 1993 9308250141 930825 LEISURE & ARTS MUSIC STEELY DAN A '70S BAND PICKS UP IN '90S BY ROBERT GOLDBERG NEW YORK IN A LARGE ANONYMOUS WEST SIDE REHEARSAL STUDIO THE MUSICIANS WERE GATHERING ON THE SOUND STAGE ONE BY ONE THEY TOOK UP THEIR INSTRUMENTS SAXOPHONES DRUMS KEYBOARDS FINALLY TWO RUMPLED GUYS IN THEIR MID40S STEPPED ONTO THE STAGE OK THE DARKHAIRED ONE RAISED HIS HAND COUNTING OUT THE BEAT AND UH UH UH UH SLUMPED BEHIND THE FENDER RHODES PIANO AND THE RED STRATOCASTER GUITAR THE PAIR MAY NOT HAVE LOOKED LIKE MUCH BUT FOR A MUSIC FAN THIS WAS A STRANGE AND MAGICAL SIGHT THE REUNION OF WALTER BECKER AND DONALD FAGEN STEELY DAN FOR NEARLY TWO DECADES STEELY DAN HAD BEEN THE HOWARD HUGHES OF ROCK BANDS RECLUSIVE TO THE POINT OF NONEXISTENCE LOCKED AWAY IN A ROOM SOMEWHERE OUT OF SIGHT TINKERING GETTING STRANGER AND STRANGER BUT ALWAYS MORE FASCINATING AND NOW FOR THE FIRST TIME IN 19 YEARS THE DAN WAS GOING ON TOUR STEELY DAN WAS THE MOST SUBTLE THE MOST DANGEROUS AMERICAN ROCK GROUP TO COME OUT OF THE 1970S FOR EIGHT GREAT YEARS SONGWRITERS BECKER AND FAGEN TOGETHER PRODUCED ROCKANDROLL WITH A BRAINANGULAR MUSIC WITH SNEAKY RHYTHMS AND SLY WITTY LYRICS RIKKI DON'T LOSE THAT NUMBER REELIN' IN THE YEARS PEG AJA DEACON BLUES FM IN THEIR SONGS JUNKIES PORN STARS AND TERRORISTS SLUNK ACROSS A DECAYING URBAN LANDSCAPE ALBUM BY ALBUM THEIR WORK BECAME MORE INTRICATE THEIR SONGS SO COOL THEY WERE ALMOST CHILLY AND THEN THEY SIMPLY DISAPPEARED IN A WAY YOU COULD SAY THEY HAD BEEN DISAPPEARING RIGHT FROM THE START NEVER ENTIRELY AT EASE IN PUBLIC PERFORMANCES FAGEN AND BECKER BRIEFLY BACKED JAY AND THE AMERICANS ON STAGE UNDER THE MONIKERS MANSON AND STARKWEATHER THEN TOURED AS STEELY DAN FOR ABOUT 18 MONTHS PLAYING LEADIN FOR URIAH HEEP AND SLADE BUT SOON THEY HOLED UP IN THE STUDIO FOR GOOD MAKING MUSIC THAT BECAME PROGRESSIVELY MORE JAZZY MORE CHROMATIC MORE ELEGANTLY CRAFTED AND IN 1980 AFTER AN ALBUM CALLED GAUCHO STEELY DAN WAS NO MORE ALL THROUGHOUT THE '80S RUMORS OF TOURS AND NEW ALBUMS KEPT SURFACING BUT THE BAND NEVER DID INSTEAD BECKER AND FAGEN WENT TO OPPOSITE ENDS OF THE COUNTRY NEW YORK AND HAWAII AND HUNKERED DOWN EVEN DEEPER WORKING INDIVIDUALLY ON SOUNDTRACKS BRIGHT LIGHTS BIG CITY AND PRODUCING RICKIE LEE JONES MOSTLY THEY JUST SUFFERED THROUGH VARIOUS PERSONAL CRISES TEN LONG BLEAK YEARS PASSED THEN A SERIES OF CLUB DATES WITH THEIR NEW YORK ROCK AND SOUL REVUE GOT THEM OUT OF HIDING AND RECENTLY FAGEN RELEASED A SOLO ALBUM ON REPRISE THE SCIFI ODYSSEY KAMIKIRIAD PRODUCED BY BECKER AND NOW HERE THEY WERE IN THE STUDIO TWO VETERAN HIPSTERS A LITTLE SCARRED BUT REMARKABLY CLEANCUT I CAN'T REMEMBER MOST OF THE '80S MYSELF SAID BECKER ADJUSTING HIS GLASSES I WOKE UP ONE MORNING AND IT WAS 1991 FAGEN LOOKED UP YOU KNOW WHAT THEY SAY HE SIGHED IF YOU CAN REMEMBER THE '80S YOU DIDN'T LIVE THROUGH THEM THIS SUMMER'S NATIONAL TOUR THROUGH SEPT 20 MARKS THE FIRST TIME MOST STEELY DAN TUNES HAVE EVER BEEN PLAYED LIVE THEY'RE NEW TO US SAID FAGEN PLAYING THEM ARRANGING THEM FOR THE STAGE WE JUST CHOSE THE SONGS WE LIKED ALTHOUGH THERE WAS A LOT OF GOOD STUFF ON THE OLD ALBUMS THERE WERE A LOT OF FAILED EXPERIMENTS TOO WE'RE NOT DOING THEM YEAH BECKER CHIMED IN TO HELL WITH THEM FOR THE QUINTESSENTIAL STUDIO BAND PLAYING IN FRONT OF AN AUDIENCE TAKES DIFFERENT CHOPS AFTER ALL THE TWO BUILT THEIR REPUTATION THE WAY THEY BUILT THEIR SONGS PHRASE BY PHRASE NOTE BY NOTE SPENDING HOUR AFTER HOUR CONSTRUCTING AN EIGHTBAR GUITAR BREAK OR VOCAL RIFF WORKING IN THE STUDIO YOU HAVE SO MUCH EDITING ABILITY SAID BECKER BUT YOU ALSO HAVE THE PRESSURE TO CREATE SOMETHING LASTING SOMETHING FLAWLESS ADDED FAGEN PLAYING IS EASY THERE'S NOTHING TEDIOUS ABOUT IT THE WAY IT CAN BE IN THE STUDIO WHEN WE WERE MAKING STEELY DAN RECORDS IT GOT TO BE ALLCONSUMING WE JUST KEPT TRYING TO TOP OURSELVES TO MAKE THE WRITING REALLY GOOD TO MAINTAIN A CERTAIN STANDARD BUT AFTER A DECADE OF MAKING RECORDS WE JUST RAN OUT OF STEAM WHICH MAY BE WHY THEY NOW FIND PLAYING THEIR MUSIC LIVE EXHILARATING THAT AND THE PERKS WE'RE GETTING A LOT OF ENDORSEMENTS OUT OF THIS BECKER JOKED SPORTINGGOODS COMPANIES OUR OWN SNEAKERS AIR DANS' THINGS LIKE THAT AND THEN THERE'S THE OPPORTUNITY TO MEET ALL THEIR FANS ANYONE CAN SIT IN IF THEY GET TO THE STAGE SAID FAGEN JUST BRING YOUR AX TO THE GIG SAID BECKER OF COURSE THERE'S A NOMINAL FEE FOR SITTING IN WITH THE BAND WE'RE RAISING CAPITAL TO PAY BACK OUR INVESTORS I'D LIKE TO TELL YOUR READERS THAT THIS IS A PAYASYOUGO TOUR IT'S NOT ONE OF THOSE TAXANDSPEND TOURS THIS IS A FISCALLY RESPONSIBLE TOUR UP ON STAGE IN CONCERT AT MADISON SQUARE GARDEN A FEW WEEKS LATER THE MUSIC CERTAINLY SOUNDED FISCALLY RESPONSIBLE CLEAN AND SPARE AND DOWNRIGHT ECONOMICAL HALF JAZZ COMBO HALF R&B GROUP THE BAND MERGED COMPLEX CHORDAL STRUCTURES WITH HORN RIFFS DOOWOP SINGERS AND A POWERFUL FUNK BACKBEAT THE CONCERT INCLUDED THE EARLIER GUITARDRIVEN SONGS SUCH AS MY OLD SCHOOL BUT FOCUSED ON THE LATER KEYBOARDANDHORNS SOUND OF DEACON BLUES WHILE THERE WERE SOME DISAPPOINTMENTS ODD PACING AND SONG SELECTION AND THE FACT THAT BECKER AND FAGEN ARE BETTER COMPOSERS THAN PERFORMERS STILL THE LEVEL OF MUSICIANSHIP WAS IMPRESSIVE THERE WERE BURNISHED ARRANGEMENTS AND GLISTENING DRAMATIC SOLOS ESPECIALLY FROM GUITARIST DREW ZINGG AND AS THE BAND PLAYED THROUGH HOME AT LAST THE MEMBERS OF THE AUDIENCE WERE SINGING ALONG SO LOUDLY THEY COULD HAVE PUT THE CONCERT ON BY THEMSELVES AFTER ALL THEY'VE HAD YEARS EVEN DECADES TO PRACTICE BACK IN THE REHEARSAL HALL THE CONVERSATION TURNED TO THE RUMORS OF A NEW STEELY DAN ALBUM WE'RE JUST BLUFFING SAID BECKER ACTUALLY SAID FAGEN WE DO HAVE SOME MATERIAL FROM THE '80S WE NEVER FINISHED AND SOME NEW THINGS AS WELL IT MAY TURN INTO AN ALBUM SO THERE THEY ARE THE STEELY AND THE DAN BACK TOGETHER AGAIN FINISHING EACH OTHER'S SENTENCES LIKE AN OLD MARRIED COUPLE WE'VE RIPENED WITH AGE SAID FAGEN LIKE A CRUSTY OLD CHEESE SAID BECKER AND NOW SAID FAGEN HEADING BACK UP TO HIS KEYBOARD NOW WE HAVE THIS AMBER GLOW AND YOU KNOW SO THEY DO 9308250140 930825 YIELDS ON CDS WERE LITTLE CHANGED IN WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE LITTLE CHANGED IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS AT MAJOR BANKS REMAINED AT 273 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS EASED TO 472 FROM 475 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS INCHED UP TO 307 FROM 305 BANXQUOTE SAID ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD SLIPPED TO 460 FROM 466 ACCORDING TO THE SURVEY ON LARGEDENOMINATION JUMBO CDS OFFERED BY MAJOR BANKS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE REMAINED AT 279 ON FIVEYEAR JUMBOS THE AVERAGE CREPT UP TO 479 FROM 477 ACCORDING TO BANXQUOTE 9308250139 930825 WHO'S NEWS DATA SWITCH CORP DATA SWITCH CORP SHELTON CONN THIS MAKER OF SYSTEMS FOR DATA PROCESSING AND DATA COMMUNICATIONS APPLICATIONS NAMED SCOTT L GELLIS 37 VICE PRESIDENT PRODUCT DEVELOPMENT MR GELLIS WHO HAD BEEN VICE PRESIDENT OF SOFTWARE AND CONTROL SYSTEMS SUCCEEDS RONALD STEINER 39 WHO IS LEAVING THE COMPANY 9308250138 930825 LEISURE & ARTS BOOKSHELF A DISMAL LANDSCAPE OF OUR OWN MAKING BY MANUELA HOELTERHOFF TOWARD THE END OF HIS DARK ODYSSEY INTO THE SUBURBS OF AMERICA JAMES HOWARD KUNSTLER IS IN AN ART GALLERY IN A SMALL TOWN IN VERMONT SO WHY DON'T YOU HAVE ANY NICE LANDSCAPES WITH LOTS OF CARS HE ASKS THE OWNERS BECAUSE NOBODY SEEMS TO WANT THEM THEY SAY OF COURSE FOR THE PRETTY VIEWS OF ROLLING HILLS AND OLDFASHIONED HOUSES NEVER A SPLITLEVEL THERE'S NO SHORTAGE OF BUYERS WHO THEN GET INTO THEIR CARS AND SPEED AWAY INTO A WASTELAND OF CARS BLACKTOP AND MASSPRODUCED HOUSING OF STUNNING SAMENESS WHY DO SO MANY OF US ACCEPT AS INEVITABLE THE GROWING GAP BETWEEN OUR IDEALIZED CONCEPTS OF HOME AND THE SORRY REALITY OF IT MR KUNSTLER WONDERS IN THE GEOGRAPHY OF NOWHERE THE RISE AND DECLINE OF AMERICA'S MANMADE LANDSCAPE SIMON & SCHUSTER 303 PAGES 23 THE SAME AMERICANS WHO GET WORKED UP OVER THE DEVASTATION OF RAIN FORESTS MR KUNSTLER WRITES EVINCE A STRIKING COMPLACENCY WHEN IT COMES TO THEIR EVERYDAY ENVIRONMENT AND THE GROWING CALAMITY THAT IT REPRESENTS MR KUNSTLER A NOVELIST WHOSE HOMETOWN OF SARATOGA SPRINGS NY WAS SPOILED BY URBAN RENEWAL AND TRAFFIC ENGINEERS THINKS THIS IS PARTLY BECAUSE TOO MANY NICE POLITE PEOPLE REGARD ARCHITECTS AND URBAN PLANNERS AS SUPERIOR CREATURES SPEAKING AN ARCANE LANGUAGE IMPOSSIBLE FOR MERE EARTHLINGS TO PENETRATE JUST HOW EXPERTS AND BUREAUCRATS OFTEN IN CAHOOTS WITH POLITICALLY CONNECTED AUTO MANUFACTURERS AND MEGALOMANIACS MANAGED TO TURN MUCH OF AMERICA INTO A SCARY LANDSCAPE OF LOOKALIKE HOUSES PERILOUS HIGHWAYS AND BLEAK SHOPPING STRIPS IS THE SUBJECT OF MR KUNSTLER'S SHARP POLEMIC NEW YORKERS ESCAPING FOR THE BEACHES OF LONG ISLAND AT A SPEED SLOW ENOUGH THEY CAN READ THIS BOOK AND DRIVE AT THE SAME TIME WILL ENJOY A PIECE OF INFORMATION MR KUNSTLER DREDGES UP ABOUT ROBERT MOSES THE LUNATIC ROAD AND BRIDGE CZAR OF NEW YORK STATE FOR DECADES AFTER WORLD WAR I AFTER PAVING OVER LONG ISLAND AND WRECKING THE BOROUGH OF THE BRONX WITH A TRUCK ROUTE AFTER HELPING TO DEFUND THE RAILROAD AND MAKING SURE THERE WOULD NEVER EVER BE ANY ROOM ON HIS CLOGGED HIGHWAYS TO BUILD RAIL LINES TO THE TWO MAJOR AIRPORTS AFTER ALL THIS AND MANY MORE CRIMES AGAINST COMMUTERS FOR WHICH WE ALL HOPE HE IS CONDEMNED TO BIKE RIDING IN HELL ROBERT MOSES NEVER LEARNED TO DRIVE A CAR THANKS TO THE MOSES MENTALITY YOU CAN HEAR ALL OF GOTTERDAMMERUNG CRAWLING FROM DOWNTOWN LA TO SANTA MONICA MR KUNSTLER SHOWS HOW CAR COMPANIES HELPED DESTROY LA'S EFFICIENT RAILROAD SYSTEM NOW BEING RECONSTRUCTED AT GREAT COST WITH SHENANIGANS THAT INCLUDED SUBVERSIVE INVESTING IN BUSES MORE BUSES MEANT MORE ROAD BUILDING AND MORE CARS A LOT OF THE MONEY WE WASTE ON PAVING ROADS AND MAINTAINING THEM COULD HAVE GONE TO PUTTING UP BUILDINGS THAT MATTER THIS MAY BE ONE OF MR KUNSTLER'S MOST IMPORTANT POINTS IN A BOOK THAT IS ALWAYS ARTICULATE IF NOT ALWAYS FRESH MUCH TIME IS SPENT THESE DAYS WONDERING HOW TO RECONSTRUCT THE FAMILY UNIT AS A BULWARK AGAINST CRIME DELINQUENCY AND GENERAL TURPITUDE BUT THIS DIDN'T HAPPEN IN A PHYSICAL VACUUM YOU DON'T HAVE TO BE AN ILLTEMPERED AESTHETE TO SEE THAT THERE HAS BEEN A SIMULTANEOUS COLLAPSE OF THE CIVIC VIRTUES ONCE EMBODIED IN COMMUNITY LIFE AND ITS PUBLIC MONUMENTS WHERE HE WONDERS IS THE SENSE OF PRIDE AND THE HOPEFUL VIEW OF DEMOCRACY THAT ONCE ILLUMINATED THE GREEK REVIVAL MERCHANTS' EXCHANGES AND COURTHOUSES OF THE EARLY 1800S CHILDREN GO TO SCHOOL IN JUNKY BUILDINGS MADE WITH DISGUSTING MATERIALS THE LOCAL FIREHOUSE OR MUSEUM LOOKS PRETTY MUCH LIKE THE BOTTLING PLANT OR PET STORE HOW DO PEOPLE LEARN DIGNIFIED BEHAVIOR IN UNDIGNIFIED PLACES THE WAY MR KUNSTLER SEES IT MANY SOCIAL PROBLEMS ARE THE RESULT OF OUTMODED PLANNING DECISIONS WRITTEN IN CEMENT SO LONG AGO THAT WE DON'T QUESTION THEM THE SEPARATION OF USES CONCEPT FOR INSTANCE WHICH SPRUNG UP IN THE 19TH CENTURY OSTENSIBLY TO PROTECT RESIDENTIAL NEIGHBORHOODS FROM INDUSTRIAL ACTIVITY NOW CONTINUES IN THE TREND TO PLACE SHOPPING CENTERS REALLY FAR AWAY FROM WHERE PEOPLE ACTUALLY LIVE INSTEAD OF DESIGNING COMMUNITIES IN WHICH LONELY SENIORS AND THE MARGINALLY EMPLOYED COULD FUNCTION WITHOUT CARS TOWN HALLS EVERYWHERE BUY THE SAME DREARY ZONING CODES CONCOCTED BY URBAN DESIGNERS DECADES AGO THOSE TOTTHREATENING WIDE STREETS THAT BLIGHT HOUSING DEVELOPMENTS FOLLOW FORMULAS DEVISED IN THE 1950S WHEN NUCLEAR WAR WITH THE RUSSIANS LOOKED LIKE A SURE THING AND LARGE TRUCKS WOULD BE NEEDED FOR MASSIVE CLEANUPS THE VICTORIAN HOUSES TOURISTS COME TO SEE IN MR KUNSTLER'S HOMETOWN COULD NOT BE ERECTED TODAY BECAUSE HOMES OVER 30 FEET IN HEIGHT ARE VERBOTEN BY THE ZONING POLICE ELSEWHERE MINIMUM ACREAGE REQUIREMENTS VIRTUALLY MANDATE SUBURBAN SPRAWL AND SEGREGATION BY INCOME LEVEL MR KUNSTLER BRIEFLY BRIGHTENS WHEN DESCRIBING SUCH EXCEPTIONS AS THE WONDERFUL SEASIDE DEVELOPMENT IN FLORIDA WHERE NO TWO HOUSES ARE ALIKE AND THE BEACHFRONT REMAINS IN THE PUBLIC DOMAIN OR PORTLAND ORE WHICH REVITALIZED ITSELF BY JUNKING CODES THAT DISCOURAGED DENSITY AND RETHINKING ITS TRAFFIC PATTERNS A NEW AND SUCCESSFUL STREETCAR NOW RUNS ON WHAT USED TO BE A HIGHWAY RIGHT OF WAY 9308250137 930825 WHO'S NEWS PLAINS PETROLEUM CO PLAINS PETROLEUM CO LAKEWOOD COLO LEE G KNUDTSON 53 YEARS OLD WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT EXPLORATION OF THE PLAINS PETROLEUM OPERATING CO UNIT OF THIS OIL AND NATURALGAS COMPANY EFFECTIVE SEPT 1 MR KNUDTSON WAS FORMERLY PRESIDENT OF QUINTANA EXPLORATION CORP HOUSTON 9308250136 930825 WHO'S NEWS RHI ENTERTAINMENT INC RHI ENTERTAINMENT INC NEW YORK RICHARD SANDS 37 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS PRODUCER AND DISTRIBUTOR OF FAMILYORIENTED TELEVISION PROGRAMMING SUCCEEDING KENNETH TERRY 37 WHO LEFT TO PURSUE OTHER INTERESTS MR SANDS HAD BEEN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF WALT DISNEY CO'S MIRAMAX FILMS CORP 9308250135 930825 INTERNATIONAL BIG CHEMICAL MAKERS IN GERMANY EXPECTED TO POST LOWER PROFIT SPECIAL TO THE WALL STREET JOURNAL FRANKFURT GERMANY'S THREE BIGGEST CHEMICAL COMPANIES ARE EXPECTED TO POST SHARPLY LOWER EARNINGS FOR THE FIRST HALF REFLECTING THE EUROPEAN RECESSION AND HIGH PRODUCTION COSTS BAYER AG AND BASF AG WILL RELEASE THEIR EARNINGS TOMORROW HOECHST AG'S RESULTS WILL FOLLOW ON MONDAY BAYER AND HOECHST ARE EXPECTED TO CONTINUE TO OUTPERFORM BASF BASF IS SEEN AS THE WEAKEST PERFORMER AMONG THE THREE MAINLY BECAUSE IT IS MORE DEPENDENT ON BULK CHEMICALS SALES THAN HOECHST AND BAYER WHICH HAVE LARGE PHARMACEUTICAL DIVISIONS SLOW SALES OF BULK CHEMICALS CAUSED BY WORLDWIDE ECONOMIC WEAKNESS CONTINUE TO WEIGH ON EARNINGS ECONOMISTS SAY ANALYSTS SAY BASF'S FIRSTHALF PRETAX PROFIT COULD BE BETWEEN 45 AND 57 LOWER THAN THE 972 MILLION MARKS 5774 MILLION IT POSTED A YEAR EARLIER HOECHST'S PRETAX PROFIT IS SEEN FALLING 20 TO 27 FROM 113 BILLION MARKS A YEAR AGO AND BAYER'S RESULTS ARE EXPECTED TO FALL 14 TO 26 FROM 175 BILLION MARKS IN THE 1992 FIRST HALF I DON'T THINK THE TRENDS HAVE CHANGED FOR GERMAN CHEMICALS COMPANIES SAID JACKIE ASHURST ECONOMIST AT JAMES CAPEL & CO IN LONDON WE'RE STILL SEEING DEPRESSED PROFIT MARGINS IN BULK CHEMICALS ESPECIALLY IN PLASTICS AND PETROCHEMICALS A SLIGHT UPSWING IN THE US ECONOMY ISN'T ENOUGH TO OUTWEIGH THE IMPACT OF EUROPE'S RECESSION BECAUSE ONLY ABOUT A FIFTH OF THE GERMAN CHEMICALS COMPANIES' SALES ARE IN THE US MS ASHURST SAID AT THE SAME TIME HOPES OF A EUROPEAN ECONOMIC RECOVERY MAY REVIVE INVESTOR INTEREST IN THE SECTOR ECONOMISTS SAY EVEN IF THE FIGURES ARE LOWER INVESTORS WILL STILL WANT TO BUY SAID HORST GREVEN ANALYST AT MERCK FINCK & CO IN DUESSELDORF GERMANY THE SIXMONTH STATEMENTS WILL BE GLOOMY BUT I'M PUTTING A NEUTRAL WEIGHTING ON THE SECTOR UP FROM UNDERWEIGHT BECAUSE THEY HAVE HAD SUCH UNDERPERFORMANCE SAID WENDY ANDERSON OIL AND CHEMICALS ANALYST AT NATWEST SECURITIES IN LONDON WE'RE AT THE BOTTOM NOW 9308250134 930825 AFTER WE GET OFF THE FETCHMASTER LET'S TROT OVER TO THE JUICE BAR BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL SANTA MONICA CALIF SPOT FEELING UNDER THE WEATHER A FEW CAPSULES OF IRISH AND ICELANDIC MOSS SHOULD DO THE TRICK SO SAYS JOEL HYMAN A RARE BREED OF MARKETING CONSULTANT TURNED PET HERBALIST WHO CONCOCTS COMFREY POULTICES FOR HORSES A SEVENHERB ANTIPARASITE FORMULA FOR BIRDS AND A WORMSEED AND PEPPERMINT FLEA POWDER FOR DOGS AND CATS HE SAYS THE MOSS MIXTURE IS ESPECIALLY GOOD FOR CANINE DIGESTIVE PROBLEMS ANIMALS WERE INTO HERBS LONG BEFORE THE ADVENT OF MAN SAYS MR HYMAN 51 YEARS OLD HIS ANIMAL BUSINESS IS AN OFFSHOOT OF HIS NINEYEAROLD HOLISTIC MEDICINE PRACTICE FOR HUMANS PEOPLE WOULD SAY MY DOG HAS THIS MY CAT HAS THAT HE SAYS IN HIS SAGESCENTED APARTMENT WHICH DOUBLES AS AN OFFICE A CANDLE BURNS ON A TABLE AND A HAWK FEATHER HANGS OVERHEAD A GIFT FROM A GRATEFUL AMERICAN INDIAN CLIENT BAGS AND TUBS OF POWDERED HERBS LINE SHELVES IN HIS BACKROOM PHARMACOPEIA WHERE HE MIXES SUCH FORMULAS AS AN ORGANIC MARIGOLD AND PAPRIKA VITAMIN C POWDER TO STAVE OFF INFECTIONS A LICORICEJOJOBA SEDATIVE FOR TRAVELING PETS AND A NATURAL CHAMOMILEBASED ANIMAL SHAMPOO AN INITIAL CONSULTATION COSTS 45 ABOUT 50 OF MR HYMAN'S 350 OR SO CLIENTS ARE NOW FOURLEGGED AND SOME ARE PETS OF CELEBRITIES LIKE THE HOLLYWOOD MADAM THOUGH HE WON'T NAME NAMES CONFIDING ONLY THAT FAMOUS OWNERS AND THEIR ANIMALS ARE ALL NEUROTIC IT'S AMAZING CALIFORNIA VETERINARY REGULATORS THREATENED TO CLOSE MR HYMAN DOWN TWO YEARS AGO BECAUSE HE LACKS A VETERINARIAN'S LICENSE AUTHORITIES KEEP HIM ON A SHORT LEASH HE DOESN'T CALL HIMSELF A VET HIS CARD READS MASTER HERBALIST AND AVOIDS CLAIMS THAT SUCH FORMULAS AS HIS WATERLILY STRENGTHENER CAN CURE PET CANCER THERE'S LITTLE SCIENTIFIC RESEARCH TO SUPPORT WHAT HERBALISTS DO SAYS GARY HILL EXECUTIVE OFFICER OF THE STATE VETERINARY MEDICAL BOARD TELL THAT TO HELENA BRESK A CORRECTIONAL OFFICER IN THE SAN LUIS OBISPO CALIFORNIA MEN'S COLONY WHO DOUBLES AS A HORSE TRAINER AND TELEPATHIC ANIMAL COMMUNICATOR SHE SAYS MR HYMAN'S HERBS CURED SHILOH HER DOG MS BRESK APPLIED HIS COMFREYANDHONEY POULTICE TO SHILOH'S BROKEN LEG BEFORE VETERINARIANS RESET IT THEY THOUGHT I WAS REALLY NUTTY SHE SAYS BUT SHILOH'S LEG HEALED UNUSUALLY QUICKLY THE VETS SHE ADDS DRYLY THOUGHT IT WAS THEIR MEDICINE 9308250133 930825 BUSINESS BRIEF HOME DEPOT INC HOMEIMPROVEMENT STORES TO TEST NEW FOOD SERVICE HOME DEPOT INC SAID IT WILL BEGIN TESTING FOOD SERVICE IN ABOUT 16 OF ITS HOMEIMPROVEMENT STORES AS EARLY AS THIS FALL THE SERVICE CALLED DEPOT DINER WILL OFFER SEVERAL FOODS FROM DIFFERENT VENDORS INCLUDING MCDONALD'S BURGER KING COCACOLA AND PIZZA HUT THE OFFERINGS WILL VARY BY MARKET HOME DEPOT DOESN'T PLAN TO OPERATE THE FACILITIES WHICH WILL BE IN THE FRONT OF THE STORES AND BE OPEN DURING NORMAL STORE HOURS THE ATLANTABASED COMPANY SAID IT IS DEVELOPING JOINT VENTURES WITH COMPANIES LIKE MCDONALD'S CORP TO MANAGE THE FOODSERVICE OPERATIONS THE INITIAL TESTS WILL TAKE PLACE IN HOME DEPOT STORES IN ATLANTA LOS ANGELES THE NEW YORK CITY METROPOLITAN AREA AND SOUTH FLORIDA 9308250132 930825 SHORT INTEREST HIGHLIGHTS NASDAQ ISSUES THE SHORT INTEREST RATIO IS THE NUMBER OF DAYS IT WOULD TAKE TO COVER THE SHORT INTEREST IF TRADING CONTINUED AT THE AVERAGE DAILY VOLUME FOR THE MONTH THE LARGEST PERCENTAGE INCREASE AND DECREASE SECTIONS ARE LIMITED TO ISSUES WITH PREVIOUSLY ESTABLISHED SHORT POSITIONS IN BOTH MONTHS 9308250131 930825 WHO'S NEWS CASCADE CORP CASCADE CORP PORTLAND ORE ROBERT C WARREN 75 YEARS OLD RESIGNED AS CHAIRMAN OF THIS MAKER OF LIFTTRUCK ATTACHMENTS AND OTHER ACCESSORIES MR WARREN WHO WILL LEAVE THE POST SEPT 1 FOR RETIREMENT WILL REMAIN A DIRECTOR AND WAS NAMED CHAIRMAN EMERITUS JOSEPH J BARCLAY 60 PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE MR WARREN'S SON ROBERT C WARREN JR 44 VICE PRESIDENT MARKETING WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER 9308250130 930825 INTERNATIONAL UK TARMAC SELLS 5 QUARRIES LONDON UK TARMAC PLC A BRITISH QUARRIES CONSTRUCTION AND BUILDING MATERIALS COMPANY ANNOUNCED THE SALE OF FIVE QUARRIES TO UK BRUNTCLIFFE AGGREGATES PLC FOR 125 MILLION 188 MILLION BRINGING PROCEEDS FROM ITS DISPOSAL PROGRAM TO 223 MILLION OUR DISPOSALS PROGRAM REMAINS ON TARGET AND WE ARE ON COURSE TO ACHIEVE OUR 300MILLION OBJECTIVE TARMAC'S CHIEF EXECUTIVE OFFICER NEVILLE SIMMS SAID 9308250129 930825 WORLD MARKETS TOKYO MARKET EDGES UP AFTER 5 LOSSES IN A ROW LONDON STOCKS REBOUND IN FUTURESLED TRADING A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS EDGED HIGHER IN LIGHT AND MOSTLY TECHNICAL TRADING ENDING A FIVESESSION DECLINE IN LONDON PRICES SNAPPED BACK AFTER THREE DAYS OF LOSSES WITH FUTURES TRADING LEADING THE CASH MARKET WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11144 UP 021 REFLECTING INCREASES IN AMERICAN AND EUROPEAN MARKETS AND A DROP IN ASIA/PACIFIC MARKETS TOBACCO STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 7864 UP 137 OR 18 WITH PHILIP MORRIS OF THE US POSTING A 3 GAIN IN ITS LOCAL CURRENCY SHIPBUILDING STOCKS TRAILED AT 10700 DOWN 191 OR 18 WITH KEPPEL OF SINGAPORE SLIDING 23 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 19312 POINTS MONDAY CLIMBED 1770 TO 2043184 IN TRADING WEDNESDAY THE NIKKEI ROSE 2171 POINTS TO CLOSE THE MORNING SESSION AT 2045355 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 170 MILLION SHARES UP FROM 1387 MILLION SHARES MONDAY LOSERS OUTNUMBERED GAINERS 531395 THE TOKYO STOCK PRICE INDEX OR TOPIX OF FIRSTSECTION ISSUES WHICH FELL 1501 POINTS MONDAY SLIPPED 187 TO 164231 A LACK OF NEWS ALONG WITH THE MARKET'S VIEW THAT PRIME MINISTER MORIHIRO HOSOKAWA ISN'T MOVING AGGRESSIVELY ENOUGH TO REMEDY JAPAN'S AILING ECONOMY SIDELINED MOST TRADERS INSTITUTIONAL INVESTORS WERE DETERRED BY LACK OF VOLUME FINDING LITTLE REASON TO EITHER BUY OR SELL AND LIKE MOST PARTICIPANTS HELD BACK IN THE HOPES OF SOME NEWS OR FRESH INCENTIVES A REBOUND IN THE DOLLAR FROM ITS OPENING OF ABOUT 10290 YEN DID LITTLE TO LIFT THE MARKET OUT OF ITS DOLDRUMS AND EXPORTERS' SHARES GAINED LITTLE IF ANYTHING FROM THE STRONGER DOLLAR A WEAK DOLLAR CUTS INTO THE VALUE OF EXPORTERS' OVERSEAS PROFITS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100 INDEX GAINED 73 POINTS TO 30493 THE FT 30 INDEX EDGED UP 01 POINT TO 23735 VOLUME WAS 5395 MILLION SHARES COMPARED WITH 5468 MILLION THE PREVIOUS DAY WITH VOLUME LIGHT FUTURES TRADING SET THE TONE FOR THE CASH MARKET LATE IN THE SESSION THE FTSE 100 WAS AHEAD ABOUT 15 POINTS WHEN FUTURES PLAYERS DECIDED TO TAKE PROFITS THE CASH MARKET FOLLOWED THE FUTURES MARKET DOWNWARD YESTERDAY'S GAINS COMING AFTER THREE SESSIONS OF LOSSES WERE NOTABLE BECAUSE THEY INDICATED THAT A SHORTTERM TRADING RANGE IS DEVELOPING THE FTSE 100 INDEX HAD FALLEN 316 POINTS BETWEEN LAST THURSDAY AND MONDAY SHARES OF SOME INSURERS FELL YESTERDAY ON WORRIES THAT THEY WILL HAVE TO PAY CLAIMS FOR POLLUTION LIABILITIES IN NEW JERSEY IN FRANKFURT STOCKS ROSE SLIGHTLY IN QUIET TRADING RECOVERING SOME OF MONDAY'S LOSSES THE DAX 30STOCK OF BLUECHIPS WHICH SLID 3441 POINTS MONDAY GAINED 942 TO 189769 SHARE PRICES WERE LIFTED SOMEWHAT BY SHORT COVERING IN WHICH TRADERS BUY SHARES TO REPLACE SHARES THAT ARE BORROWED AND SOLD IN A BET THAT PRICES WILL FALL OTHER EUROPEAN MARKETS WERE MIXED IN PARIS EQUITIES CLIMBED BREAKING WITH TRADITION ON THE LAST DAY OF AN ACCOUNTING MONTH AS INSTITUTIONAL PLAYERS TRIED TO GET A JUMP ON EXPECTED GAINS IN THE NEXT COUPLE OF WEEKS TRADERS ARE WATCHING TO SEE IF GERMANY'S CENTRAL BANK THE BUNDESBANK DECIDES TO CUT INTEREST RATES AT ITS POLICY MEETING TOMORROW PARIS DEALERS EXPECT AT LEAST A TOKEN EASING A VIEW THAT HAS HELPED SUPPORT STOCK PRICES IN AMSTERDAM STOCKS ADVANCED ON THE STRENGTH OF MARKETS ABROAD AND EXPECTATIONS OF A FRESH ROUND OF INTEREST RATE CUTS IN EUROPE IN MILAN PRICES FINISHED LOWER IN A SEESAW SESSION AS PROFITTAKING MIXED WITH SOME BUYING DEMAND IN MADRID STOCKS RALLIED TO A HIGH FOR THE YEAR DESPITE THE BANK OF SPAIN'S DECISION TO LEAVE ITS BENCHMARK INTEREST RATE THE 7TO12 DAY SECURITIES REPURCHASE TENDER UNCHANGED AT 1050 INVESTORS ARE STILL CONVINCED THAT GERMAN AND SPANISH INTEREST RATES WILL EVENTUALLY FALL IN STOCKHOLM SHARES SANK 17 IN HEAVY TRADING AFTER A WORSETHANEXPECTED EARNINGS REPORT FROM A COMMERCIAL BANKING GROUP MOST ASIAN AND PACIFIC MARKETS FINISHED LOWER IN SYDNEY SHARE PRICES WEAKENED EXCEPT IN THE MEDIA SECTOR WHICH WAS SUPPORTED BY A RISE IN NEWS CORP STOCK AHEAD OF A PROFIT ANNOUNCEMENT TODAY THE MARKET WAS CONSOLIDATING FOLLOWING RECENT STRONG RISES WITH SOME PROFITTAKING IN HONG KONG STOCKS SLUMPED FOR A THIRD STRAIGHT SESSION DESPITE A MIDDAY REBOUND THE CONSOLIDATION BEGAN LAST WEEK WHEN HANG SENG BANK ONE OF THE COLONY'S MAJOR BANKS POSTED LOWERTHANEXPECTED FIRSTHALF EARNINGS GROWTH IN TAIPEI EQUITIES RETREATED IN THIN TRADING THE SIXTH CONSECUTIVE DECLINING SESSION MOST SPECULATIVE SHARES SUFFERED RELATIVELY SHARP DROPS IN SEOUL PRICES PLUNGED 17 ON RUMORS OF A CASH CRUNCH IN SMALLCAPITALIZATION ISSUES TRIGGERING CONCERN WAS SOUTH KOREA'S NEW REALNAME FINANCIAL TRANSACTION SYSTEM WHICH BARS USE OF PSEUDONYMS IN FINANCIAL DEALINGS THE COUNTRY'S SMALL BUSINESSES HAD RELIED ON THE UNDERGROUND CURB MARKET TO SECURE FUNDS BUT MANY OF THESE CASHRICH LENDERS DISAPPEARED AFTER THE IMPLEMENTATION OF THE REALNAME SYSTEM FORCING THE GOVERNMENT TO PROVIDE SPECIAL LOANS OF MORE THAN 1 TRILLION WON 123 BILLION FOR SMALL BUSINESSES IN MANILA SHARES EASED IN MODERATE VOLUME HURT BY PROFITTAKING IN WELLINGTON PRICES WERE PUSHED DOWN BY PROFITTAKING AMONG LEADING ISSUES FOLLOWING MONDAY'S CLOSE AT A FOURYEAR HIGH AMONG CORPORATE DEVELOPMENTS IN STOCKHOLM HANDELSBANKEN TUMBLED 16 KRONOR OR 11 TO 130 KRONOR 1608 THE COMMERCIAL BANKING GROUP DRAGGED DOWN THE STOCKHOLM MARKET AFTER REPORTING AN OPERATING PROFIT OF 837 MILLION KRONOR 1035 MILLION COMPARED WITH A 658 MILLION KRONA LOSS A YEAR EARLIER THE PROFIT WAS SOMEWHAT BELOW MARKET EXPECTATIONS IN PARIS EURO DISNEY FINISHED UNCHANGED AT 56 FRENCH FRANCS 953 EARLIER IN THE DAY THE STOCK WAS UP CONSIDERABLY IN A REBOUND FROM A STRING OF LOSING SESSIONS THE THEME PARK OPERATOR REASSIGNED JOHN FORSGREN VICE CHAIRMAN IN CHARGE OF EXTERNAL AND BOARD RELATIONS TO US PARENT WALT DISNEY CO BUT THE COMPANY QUASHED SPECULATION THAT HIS DEPARTURE SIGNALS THE START OF A MANAGEMENT SHAKEUP EURO DISNEY ALSO SAID IT HAS NO PLANS TO CLOSE THE UNPROFITABLE PARIS THEME PARK THIS WINTER CONTRARY TO EARLIER ACKNOWLEDGMENTS OF SUCH A POSSIBILITY 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 9308250128 930825 INTERNATIONAL ABB TO REORGANIZE ITS GLOBAL STRUCTURE INTO THREE REGIONS BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL ZURICH ABB ASEA BROWN BOVERI LTD ANNOUNCED AN OVERHAUL OF ITS MANAGEMENT STRUCTURE DESIGNED TO IMPROVE THE SWISSSWEDISH ELECTRICAL ENGINEERING GROUP'S POSITION IN GLOBAL MARKETS THE MOVE CAME ONLY A FEW DAYS AFTER ABB RELEASED SLUGGISH FIRSTHALF EARNINGS AND SURPRISED ANALYSTS BY ANNOUNCING PLANS TO TAKE A 500 MILLION RESTRUCTURING CHARGE IN THE SECOND HALF ABB IS BEING HIT HARD BY THE RECESSION IN MANY EUROPEAN COUNTRIES AND BY SLOW ECONOMIC RECOVERY IN THE US EARLIER IT ANNOUNCED PLANS TO TRIM ITS WORK FORCE AND CLOSE SEVERAL PLANTS IN WESTERN EUROPE AND THE US THE LATEST CHANGES EFFECTIVE OCT 1 INCLUDE THE CENTRALIZATION OF FRAGMENTED NATIONAL MANAGEMENTS INTO THE THREE MAIN ECONOMIC REGIONS EUROPE THE AMERICAS AND ASIAPACIFIC PERCY BARNEVIK ABB'S CHIEF EXECUTIVE OFFICER SAID THE GROWING UNIFICATION OF EUROPE REQUIRES THAT THE CONTINENT BE TREATED AS ONE MARKET WHILE THE OPENINGUP OF MARKETS UNDER THE NORTH AMERICAN FREE TRADE AGREEMENT MADE THE ESTABLISHMENT OF ONE REGION FOR THE AMERICAS A LOGICAL STEP AND TREATING THE ASIANPACIFIC REGION AS ONE WOULD ENSURE FOCUSED ATTENTION IN THE AREA OF THE WORLD WITH THE GREATEST GROWTH POTENTIAL HE ADDED UNDER A CONTINUING CORPORATE RESTRUCTURING ABB ALSO ANNOUNCED PLANS TO CONSOLIDATE SOME INDUSTRIALPRODUCT SEGMENTS THE CURRENT SIX SUCH OPERATIONS POWER PLANTS POWER TRANSMISSION POWER DISTRIBUTION INDUSTRY TRANSPORTATION AND VARIOUS ACTIVITIES WILL BE CUT TO FOUR POWER TRANSMISSION AND DISTRIBUTION WILL BE JOINED AND VARIOUS ACTIVITIES INTEGRATED INTO INDUSTRIAL AND BUILDING SYSTEMS WITHIN THE SEGMENTS THE CURRENT 65 GLOBAL BUSINESS AREAS WILL BE CUT TO 50 THE PLAN IS TO GIVE BUSINESS AREAS MORE RESPONSIBILITY WHEN DEALING WITH CUSTOMERS AND TO REDUCE OVERHEAD COSTS ANALYSTS ARE FORECASTING A DROP IN ABB'S PROFIT THIS YEAR PARTLY BECAUSE OF THE RESTRUCTURING CHARGE FOLLOWED BY AN EARNINGS REVIVAL IN 1994 URS KUNZ OF CREDIT SUISSE SAID THAT HE EXPECTS A 37 DROP IN EARNINGS IN 1993 BUT THAT PROFIT WILL MORE THAN DOUBLE IN 1994 IN 1992 ABB EARNED 505 MILLION 9308250127 930825 PETER KELLOGG BUYS ADVEST STOCK WASHINGTON PETER KELLOGG SENIOR MANAGING DIRECTOR OF SPEAR LEEDS & KELLOGG SAID HE RAISED HIS STAKE IN ADVEST GROUP INC HARTFORD CONN TO 1674 OF THE COMMON STOCK OUTSTANDING IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION MR KELLOGG SAID HE PURCHASED 92800 COMMON SHARES OF THE FINANCIAL SERVICES COMPANY FROM AUG 11 TO AUG 17 FOR 6375 TO 7 A SHARE HE NOW HOLDS 1550000 COMMON SHARES 9308250126 930825 OLSTEN'S HEALTHCARE DIVISION WESTBURY NY OLSTEN CORP SAID IT RENAMED ITS HEALTHCARE DIVISION A 12 BILLION UNIT THAT PROVIDES WORKERS FOR A VARIETY OF HEALTHCARE SERVICES THE UNIT FORMERLY OLSTEN HEALTHCARE HAS BEEN RENAMED OLSTEN KIMBERLY QUALITYCARE TO REFLECT THE KIMBERLY OPERATION RECENTLY ACQUIRED AS PART OF THE ACQUISITION OF LIFETIME CORP 9308250125 930825 FORD TO SELL AUTO SEAT BUSINESS DEARBORN MICH FORD MOTOR CO SAID IT WILL SELL PART OF ITS NORTH AMERICAN AUTOMOTIVE SEATING AND SEAT TRIM BUSINESS TO LEAR HOLDINGS CORP SOUTHFIELD MICH TERMS WEREN'T DISCLOSED THE SALE INCLUDES FAVESA SA DE CV JUAREZ MEXICO WHICH BUILDS SEAT TRIM PRODUCTS FOR FORD AND CERTAIN SEAT DESIGN AND ENGINEERING OPERATIONS 9308250124 930825 INTERNATIONAL BRIEF SVENSKA HANDELSBANKEN SWEDISH BANK POSTS PROFIT FROM OPERATIONS IN 1ST HALF SWEDISH COMMERCIAL BANKING GROUP SVENSKA HANDELSBANKEN SWUNG TO AN OPERATING PROFIT OF 837 MILLION KRONOR 104 MILLION IN THE FIRST SIX MONTHS OF 1993 FROM AN OPERATING LOSS OF 658 MILLION KRONOR A YEAR EARLIER BUT THE RESULTS WERE STILL BELOW EXPECTATIONS IN RESPONSE HANDELSBANKEN A SHARES FELL TO 130 KRONOR 1608 FROM 146 AND DRAGGED DOWN THE ENTIRE SWEDISH STOCK MARKET HANDELSBANKEN ALSO ANNOUNCED A 27BILLIONKRONA NEWSHARE ISSUE AIMED AT EXISTING SHAREHOLDERS WHO WILL BE ABLE TO BUY ONE NEW SHARE FOR EACH TWO SHARES CURRENTLY OWNED HANDELSBANKEN'S OPERATING PROFIT BEFORE LOANLOSS PROVISIONS AMOUNTED TO 446 BILLION KRONOR IN THE FIRST HALF COMPARED WITH 334 BILLION IN THE YEAREARLIER PERIOD 9308250123 930825 ECONOMY OPEC OUTPUT IS HIGH DESPITE WEAK DEMAND PETROLEUM INVENTORIES RISE DESPITE CUTBACK CALLS KEEPING A LID ON PRICES BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL PRODUCTION BY OPEC REMAINS HIGH DESPITE SLUGGISH OIL DEMAND RESULTING IN A RISE IN WORLD PETROLEUM INVENTORIES THAT IS MAINTAINING PRESSURE ON OIL PRICES PRELIMINARY INDICATIONS BY MONITORS OF OUTPUT BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ARE THAT AUGUST PRODUCTION OF CRUDE OIL WILL AVERAGE MORE THAN ONE MILLION BARRELS ABOVE THE THIRDQUARTER CEILING OF 236 MILLION BARRELS A DAY DESPITE CALLS AMONG THE EXPORTERS FOR CUTS BY COUNTRIES THAT ARE CHEATING ON QUOTAS PRODUCTION IS 246 MILLION TO 247 MILLION BARRELS A DAY SO FAR THIS MONTH ABOUT THE SAME AS IN JULYSAID BAHMAN KARBASSIOUN A VIENNABASED CONSULTANT ON OPEC AFFAIRS BUT HE ADDED OPEC OIL MINISTERS SEEM MORE OR LESS RESIGNED TO THE IDEA THEY CAN'T DO MUCH ABOUT IT UNTIL THEY MEET IN SEPTEMBER EVEN IF THE MINISTERS ARE ABLE TO AGREE THEN ON BALANCING OPEC'S OUTPUT WITH ANTICIPATED DEMAND THERE LIKELY WOULDN'T BE MUCH OF AN IMPACT ON OIL SUPPLIES UNTIL NOVEMBER MR KARBASSIOUN SAID CARGOS WILL ALREADY BE COMMITTED FOR OCTOBER LOADINGS WHEN THE MINISTERS MEET IN GENEVA SEPT 25 HE SAID WORLD OIL PRICES RECENTLY HAVE RECOVERED SOME OF THEIR LOSSES OF THE PAST THREE MONTHS BUT STILL ARE DOWN BETWEEN 2 AND 3 A BARREL IN THE PAST THREE MONTHS PRICES DECLINED AGAIN YESTERDAY ON THE EASING OF A THREAT OF AN OIL WORKERS' STRIKE IN NIGERIA A MAJOR OPEC PRODUCER AND ON EXPECTATIONS OF A BEARISH INDUSTRY REPORT ON US OIL INVENTORIES THE FUTURES PRICE OF CRUDE OIL FOR OCTOBER DELIVERY ON THE NEW YORK MERCANTILE EXCHANGE SETTLED 18 CENTS LOWER AT 1835 A BARREL ACCORDING TO ENERGY SECURITY ANALYSIS WHICH MONITORS WORLD OIL SUPPLIES THE PRICE OF THE US BENCHMARK CRUDE IS UNLIKELY TO STAY MUCH ABOVE 18 A BARREL AS LONG AS THE OIL MARKET IS SKEPTICAL ABOUT OPEC'S PRODUCTION POLICY BUT ROBERT MCNALLY AN ANALYST WITH THE WASHINGTON FIRM CITED UNCONFIRMED REPORTS THAT SAUDI ARABIA WHICH HAD BEEN INSISTING ON PRODUCING ITS FULL QUOTA OF EIGHT MILLION BARRELS A DAY MAY HAVE REDUCED OUTPUT SOMEWHAT BECAUSE OF FULL STORAGE TANKS OR SLUGGISH SALES ANOTHER POSSIBLY BULLISH NOTE FOR THE INDUSTRY WAS THE REPORT LATE YESTERDAY BY THE AMERICAN PETROLEUM INSTITUTE WHICH SHOWED A LARGE DROP OF 49 MILLION BARRELS IN US CRUDE OIL INVENTORIES LAST WEEK STILL GLOBAL COMMERCIAL INVENTORIES ARE 119 MILLION BARRELS ABOVE LAST YEAR'S LEVEL ACCORDING TO THIS WEEK'S ISSUE OF PETROLEUM INTELLIGENCE WEEKLY HOWEVER LARGE OR SMALL THE INVENTORY GLUT MAY BE RECENT PRICE WEAKNESS SUGGESTS A MARKET JUDGMENT THAT THE EXCESS WILL BE DIFFICULT TO MANAGE PETROLEUM INTELLIGENCE WEEKLY SAID THIS IN TURN REFLECTS A BELIEF THAT OPEC IS PARALYZED POLITICALLY MOST ANALYSTS AGREE THE INVENTORY OVERHANG MAY BE EASED BY A SEASONAL RISE IN OIL DEMAND IN THE FOURTH QUARTER OR BY A POSSIBLE END TO THE ECONOMIC MALAISE IN THE INDUSTRIAL NATIONS NORMALLY OIL INVENTORIES ARE DRAWN DOWN IN THE FOURTH QUARTER WITH THE BALANCE OF REQUIRED SUPPLIES MADE UP BY OPEC THESE QUARTERLY DRAWDOWNS HAVE VARIED WIDELY IN RECENT YEARS RANGING FROM 11 MILLION BARRELS A DAY IN THE 1991 FOURTH QUARTER TO ONLY 100000 BARRELS A DAY IN THE FOURTH QUARTER OF 1992 EVEN AT THE HIGHER END OF THE RANGE THERE WOULD APPEAR TO BE ROOM FOR AS MUCH OIL FROM OPEC AS IT IS CURRENTLY PRODUCING MUCH DEPENDS HOWEVER ON THE THIRDQUARTER STATUS OF INVENTORIES IN ITS LATEST MONTHLY REVIEW OF SUPPLIES PETROLEUM ARGUS REPORTED FOURTHQUARTER DEMAND FOR OPEC OIL COULD REACH 255 MILLION BARRELS A DAY BUT IF REFINERS ARE UNABLE TO REDUCE THEIR CRUDE STOCKS OVER THE REMAINDER OF THE THIRD QUARTER THE DEMAND FOR OPEC CRUDE MIGHT BE AS LOW AS 25 MILLION BARRELS A DAY IT ADDED 9308250122 930825 BUSINESS BRIEF GREYHOUND LINES INC NATIONAL BUS CONCERN SAW PASSENGER TRAFFIC FALL IN JULY GREYHOUND LINES INC OF DALLAS SAID ITS PASSENGER TRAFFIC FELL 18 IN JULY TO 6507 MILLION REVENUE PASSENGER MILES FROM 6626 MILLION IN JULY 1992 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER TRAVELING ONE MILE THE BUS COMPANY ALSO REPORTED THAT IT FILLED 625 OF ITS AVAILABLE SEATS UP FROM THE 616 REPORTED A YEAR EARLIER THE COMPANY SAID THAT DESPITE THE DECREASE IN REVENUE PASSENGER MILES GREYHOUND WAS ABLE TO INCREASE THE PERCENTAGE OF FILLED SEATS BY REDUCING THE NUMBER OF MILES ITS BUSES TRAVELED AND BY SCHEDULING DEPARTURES TO MATCH CUSTOMER DEMAND GREYHOUND BUSES LOGGED 231 MILLION MILES DURING JULY DOWN 32 FROM 239 MILLION IN JULY 1992 9308250121 930825 PEPPERAND SALT WE BRAGGED ABOUT OUR HEALTHY TAN HAVE SHOWN ANOTHER DARKER SIDE IS OUT RAW EPIDERMIS IN BUT NOT WHERE THEY ARE GOING 9308250120 930825 WILLIAMS UNION PACIFIC PACT TULSA OKLA WILLIAMS COS SAID IT PLANS TO JOIN WITH UNION PACIFIC CORP BETHLEHEM PA TO DEVELOP A NATURALGAS FIELD IN WYOMING WILLIAMS IS A GAS PIPELINE COMPANY WITH INTERESTS IN TELECOMMUNICATIONS UNION PACIFIC'S BUSINESSES INCLUDE OIL AND GAS EXPLORATION AS WELL AS TRANSPORTATION THE COMPANIES' PLANS INCLUDE JOINT OWNERSHIP OF A NEW GASPROCESSING PLANT NOW UNDER CONSTRUCTION 9308250119 930825 BRIDGE' LOANS TO LATIN AMERICA RISE BUT SOME WONDER IF THE TOLL IS TOO HIGH BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH THEIR SCARS BARELY FADED FROM THE LATIN AMERICAN LENDING OF YEARS PAST BIG BANKS ARE BACK IN THE REGION MAKING TEMPORARY BRIDGE LOANS TO LATIN COMPANIES BRIDGE LOANS PICKED UP A BAD NAME IN THE US CORPORATE LENDING MARKET AWHILE BACK THEY ARE MEANT TO LAST A FEW MONTHS QUICKLY REPLACED WITH LONGTERM FINANCING WHEN ALL WORKS AS PLANNED BRIDGE LOANS CAN BRING FAT FEES TO LENDERS AND SPEEDY CASH TO BORROWERS BUT WALL STREET WILL NEVER FORGET HOW THE 1989 COLLAPSE IN THE JUNKBOND MARKET TURNED GIANT TEMPORARY BRIDGE LOANS INTO BRIDGES TO NOWHERE GENERATING BIG WRITEOFFS TODAY THE BRIDGE IS BACK OFTEN AS A SOURCE OF UPFRONT CASH FOR JUNKRATED LATIN CORPORATIONS THAT ARE PLANNING BOND ISSUES BANKERS TRUST NEW YORK CORP CHASE MANHATTAN CORP CITICORP AND JP MORGAN & CO AS WELL AS FOREIGN BANKS SUCH AS SPAIN'S BANCO SANTANDER ALL ARE WRITING BRIDGE LOANS TO LATIN AMERICAN COMPANIES IN THE RACE TO WIN MUCHDEMANDED LATIN BOND OFFERINGS TODAY BANKS USE BRIDGE LOANS AS A COMPETITIVE TOOL TO DIFFERENTIATE THEMSELVES FROM THEIR RIVALS AT WALL STREET INVESTMENT BANKS YET THE STREET DOESN'T SEEM ENVIOUS FROM THE STANDPOINT OF CREDIT RISK IT IS NOT SOMETHING WE'VE SEEN AS A GOOD BUSINESS TO GET INTO SAYS EMILIO LAMAR MANAGING DIRECTOR AT MERRILL LYNCH & CO'S INTERNATIONAL EMERGING MARKETS UNIT STEPHEN DIZARD MANAGING DIRECTOR AT SALOMON INC'S SALOMON BROTHERS ADDS PUT SIMPLY WE DON'T DO BRIDGE LOANS TO WIN BOND OFFERINGS AND I DON'T THINK WE FEEL DISADVANTAGED A FEDERAL RESERVE SYSTEM OFFICIAL WHO DECLINED TO BE IDENTIFIED COMMENTS SOME OF THESE BRIDGE LOANS ARE INCREDIBLE GIVEN THE TRACK RECORD OVER THE LONG COURSE OF HISTORY IN LATIN AMERICA AND THE RECENT MEMORY OF THE 1980S THE FED OFFICIAL ADDS TH APPETITE FOR GOING OUT AND LENDING EXTRAORDINARY SUMS OF MONEY TO SHAKY FOREIGN DEBTORS IS BACK BANKERS ACKNOWLEDGE THE RISKS OF BRIDGE LENDING ROLAND WOJEWODZKI MANAGING DIRECTOR AT JP MORGAN SAYS WE ARE VERY CAUTIOUS HE SAYS JP MORGAN PREFERS TO WRITE BRIDGE LOANS ONLY FOR ACQUISITIONS AND ONLY AFTER THE BANK DISCERNS THAT THE BRIDGE CAN BE REPAID OUT OF OPERATING CASH IF NECESSARY WE HAVE BEEN EXTREMELY CAREFUL SAYS JOAQUIN AVILA MANAGING DIRECTOR AT BANCO SANTANDER'S INVESTMENT BANKING UNIT MOODY'S INVESTORS SERVICE CO AND STANDARD & POOR'S CORP AS A MATTER OF POLICY WON'T RATE A COMPANY HIGHER THAN ITS HOME COUNTRY CHILE IS THE ONLY COUNTRY IN LATIN AMERICA THAT HAS AN INVESTMENTGRADE RATING FROM BOTH AGENCIES ON ITS DOLLARDENOMINATED DEBT IN EFFECT BILLIONS OF DOLLARS IN LATIN AMERICAN CORPORATE DEBT CARRY A BELOWINVESTMENT GRADE OR JUNK RATING SOME COMPANIES HAVE INVESTMENTGRADE RATINGS ON DEBT DENOMINATED IN LOCAL CURRENCY SUCH AS MEXICAN PESOS BUT ONLY A SELECT FEW HAVE STRONG BALANCE SHEETS AND BUSINESSES THE AGENCIES SAY HIGHYIELDING LATIN DEBT IS MUCH IN DEMAND TODAY LATIN CORPORATIONS HAVE SOLD SOME 25 BILLION IN DOLLARDENOMINATED DEBT TO BOTH MUTUAL FUNDS FAVORED BY SMALL INVESTORS AND INSTITUTIONS DURING THE PAST YEAR AND A HALF SEVERAL OF THESE DEBT DEALS REPAID BANK BRIDGE LOANS BUT BULL MARKETS IN FOREIGN BONDS DON'T LAST FOREVER AND POLITICAL RISK OFTEN IS AS DANGEROUS AS MARKET RISK IN LATIN AMERICA CHASE MANHATTAN MADE A 150 MILLION BRIDGE LOAN TO VENEZUELAN OIL COMPANY BARIVEN IN ADVANCE OF A 400 MILLION BOND SALE IN MARCH 1992 BUT AS THE BANK PREPARED TO SELL THE BONDS VENEZUELA PLUNGED INTO CIVIL TURMOIL FOLLOWING AN ATTEMPTED COUP IN FEBRUARY THE BRIDGE LOAN WAS REPAID BUT CHASE ENDED UP HOLDING SOME OF THE BARIVEN 10YEAR BONDS WHICH BY LATE SPRING HAD FALLEN MORE THAN FIVE POINTS OR 50 FOR EACH 1000 FACE AMOUNT BANKERS TRUST WROTE A 230 MILLION BRIDGE LOAN FOR THE WORKINGCAPITAL NEEDS OF BARIVEN A BOND SALE LED BY BANKERS TRUST IN DECEMBER 1991 TWO MONTHS BEFORE THE COUP ATTEMPT REPAID THE BRIDGE IT WAS A TIMELY EXIT FOR BANKERS TRUST BY MARCH 1992 THE BONDS WERE DOWN ABOUT TWO POINTS OR 20 FOR EACH 1000 FACE AMOUNT LATIN AMERICAN ECONOMIES ARE STILL VERY YOUNG THERE WILL BE DOWNTURNS AND DEFAULTS PREDICTS ASHWIN VASAN PORTFOLIO MANAGER AT OPPENHEIMER MANAGEMENT CORP THAT'S WHEN BANKS WILL FACE SERIOUS CONFLICTOFINTEREST ISSUES IF THEY TRY TO SELL BONDS TO BAIL OUT A BRIDGE HE SAYS WHEN THE COMPANY IS IN TROUBLE AND THE BANKS ARE LEAVING WATCH OUT HE SAYS THE CONFLICT SAYS BRIAN O'NEILL SENIOR VICE PRESIDENT AT CHASE MANHATTAN BANK IS IF IT IS A BAD CREDIT AND YOU ARE PAYING YOURSELF WITH THE BONDS' PROCEEDS AND GETTING YOUR CHESTNUTS OUT OF THE FIRE BANKERS SAY BRIDGE LOANS PROVIDE READY CASH TO LATIN CORPORATIONS MAKING ACQUISITIONS OR BIDDING FOR PROPERTIES IN PRIVATIZATIONS BRIDGE LENDING IS USED AS A COMPETITIVE TOOL FOR A BOND ISSUER TO HAVE FUNDS IMMEDIATELY AVAILABLE SAYS HUGO VERDEGAAL DIVISION EXECUTIVE FOR CITIBANK'S INTERNATIONAL CORPORATE FINANCE DEPARTMENT LATIN BORROWERS KNOW THEIR DEBT IS IN DEMAND THEY KNOW LATIN UNDERWRITING RANKINGS ARE IMPORTANT FOR BANKS SO THEY PLAY THE BANKERS AGAINST THEMSELVES THEY DEMAND PROCEEDS BEFORE THE BONDS ARE EVEN SOLD SIMPLY BECAUSE THEY KNOW THE BANKS WILL DO IT TO COMPETE FOR DEALS CITIBANK'S MR VERDEGAAL SAYS IN A NUMBER OF CASES THE CLIENT FOR BUSINESS PURPOSES OR OTHER REASONS WOULD LIKE TO HAVE THE FUNDS UPFRONT IT IS NOT CUSTOMARY TO DO THAT BUT IT IS BEING DONE BANKERS ARE WATCHING EACH OTHER THEY'RE ALL ARE WORRIED ABOUT THE OTHER GUY WHAT SCARES ME MOST IS THAT MOST BANKS JUST GET INTO BUSINESS TO GET MARKET SHARE SAYS BANCO SANTANDER'S MR AVILA FEW ADMIT THAT THIS IS EXACTLY WHAT THEY ARE DOING THOUGH ARGENTINE COMPANIES HAVE SO FREQUENTLY ARRANGED FOR UPFRONT CASH AHEAD OF BOND DEALS THAT IT HAS BECOME A JOKE AMONG BANKERS THEY SAY ARGENTINE COMPANIES HAVE A CASH HOTLINE TO NEW YORK BANKS THE NUMBER BANKERS TRUST SELLS ITS BRIDGE LOANS SOON AFTER THEY ARE MADE THEY AREN'T KEPT ON BANKERS TRUST'S BALANCE SHEET A BANKERS TRUST OFFICIAL EXPLAINS BUT THEY DO END UP ON SOME OTHER BANK'S OR INVESTOR'S BALANCE SHEET MR WOJEWODZKI THE JP MORGAN MANAGING DIRECTOR RECALLS A HAUNTING MEMORY WHILE DRIVING IN SOUTH AMERICA IN 1981 HE SPOTTED A HIGH UNFINISHED OVERPASS I ALWAYS THINK OF THAT WHEN WE TALK ABOUT BRIDGE LOANS AROUND HERE HE SAYS THE ROAD ENDED IN THE SKY A BRIDGE TO NOWHERE MANY OF THE CELEBRATED LATIN AMERICAN BOND DEALS ARE ALSO FINANCINGS DESIGNED TO GET BANKS OUT OF RISKY BRIDGE LOANS HERE'S A LIST OF SOME OF THE BRIDGE LOANS EXTENDED BY BANKS OVER THE PAST TWO YEARS AND A COMMENT ON THE BONDS THAT BAILED THEM OUT GIANT BRIDGE LOAN HELPED FINANCE ACQUISITIONS BY THE CEMENT COMPANY REPAID THROUGH BOND SALES INCLUDING 1 BILLION BOND OFFERING LED BY JP MORGAN IN JUNE OFFERING LED BY BEAR STEARNS MARCH 1992 WITH 230 MILLION BOND ISSUE DECEMBER 1991 400 MILLION BOND OFFERING MARCH 1992 MILLION JUNE 1992 BOND OFFERING GOVERNMENT REPAID WITH 60 MILLION BOND SALE IN JUNE BOND ISSUE IN OCTOBER 1992 9308250118 930825 OHM UNIT GETS NAVY CONTRACT FINDLAY OHIO OHM CORP SAID ITS OHM REMEDIATION SERVICES UNIT WON A NAVY CONTRACT VALUED AT AS MUCH AS 250 MILLION OVER FIVE YEARS FOR ENVIRONMENTAL REMEDIATION THE COMPANY SAID THE WORK GENERALLY INVOLVES SITES ON THE US EAST COAST AND IN BERMUDA AND PUERTO RICO THE CONTRACT IS FOR A ONEYEAR TERM VALUED AT 50 MILLION AND HAS OPTIONS FOR FOUR MORE YEARS AT 50 MILLION EACH 9308250117 930825 TECHNOLOGY MICROSOFT TO EXPAND TEXAS SITE IRVING TEXAS MICROSOFT CORP SAID IT PLANS TO EXPAND THE CAPACITY OF ITS TECHNICAL SUPPORT CENTER IN THE LAS COLINAS AREA HERE SCHEDULED FOR INITIAL OCCUPANCY IN MIDOCTOBER THE NEW 120000SQUAREFOOT FACILITY WILL HELP SUPPLEMENT THE EXISTING 400PERSON PRODUCT SUPPORT SERVICES WORK FORCE MICROSOFT DID NOT DISCLOSE THE COST OF THE EXPANSION 9308250116 930825 INTERNATIONAL MATSUSHITA'S 1STPERIOD PROFIT FELL 7 ANALYSTS APPLAUD EFFECTIVE COST CONTROL BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO MATSUSHITA ELECTRIC INDUSTRIAL CO REPORTED A 7 DROP IN FIRSTQUARTER CONSOLIDATED PRETAX PROFIT ON A 7 DECLINE IN SALES RESULTS FUELED OPTIMISM AMONG ANALYSTS THAT THE COMPANY HAS SUCCESSFULLY SLIMMED DOWN TO COPE WITH A SLUMP IN ITS CORE CONSUMERELECTRONICS BUSINESS THE OSAKA ELECTRONICS COMPANY SAID PRETAX PROFIT IN THE QUARTER ENDED JUNE 30 DECLINED TO 337 BILLION YEN 327 MILLION FROM 363 BILLION YEN A YEAR EARLIER SALES FELL TO 1596 TRILLION YEN FROM 1713 TRILLION YEN GROUP OPERATING INCOME WHICH REFLECTS CORE BUSINESS OPERATIONS FELL 6 IN THE QUARTER TO 289 BILLION YEN FROM 308 BILLION YEN A YEAR EARLIER ANALYSTS WERE GENERALLY IMPRESSED BY MATSUSHITA'S ABILITY TO CONTROL ITS DECLINE IN PROFIT EVEN AS SALES FELL THEY SAID THE COMPANY HAS FARED MUCH BETTER THAN ITS CHIEF RIVAL SONY CORP IN COPING WITH THE SLUMP IN CONSUMERELECTRONICS SALES AND THE SLUGGISH JAPANESE ECONOMY THESE SIGNS ARE VERY ENCOURAGING SAID LEE KERK PHUA AN ANALYST WITH BARING SECURITIES JAPAN LTD IF YOU COMPARE MATSUSHITA WITH SONY YOU'LL SEE HOW BAD SONY IS AND HOW GOOD MATSUSHITA IS AT COST CONTROL LAST WEEK SONY REPORTED A 10 FALL IN CONSOLIDATED SALES AND A 36 DROP IN OPERATING PROFIT FOR ITS FIRST QUARTER THOUGH CURRENCY HEDGING HELPED THE COMPANY BOOST GROUP PRETAX PROFIT 31 WHILE INCREMENTAL MATSUSHITA'S COSTCONTROL MEASURES HAVE BEEN SURPRISINGLY EFFECTIVE ANALYSTS SAID IN PARTICULAR THEY NOTED MATSUSHITA'S EFFORTS TO AUTOMATE MORE FULLY ITS MANUFACTURING OPERATIONS CONSOLIDATE ITS PRODUCT LINES AND SIMPLIFY ITS DISTRIBUTION NETWORK MATSUSHITA ALSO HAS TAKEN STEPS TO COPE WITH THE STRONG YEN WHICH REDUCES OVERSEAS SALES WHEN TRANSLATED INTO THE JAPANESE CURRENCY THE COMPANY SAID IT BOOSTED THE PERCENTAGE OF IMPORTED COMPONENTS TO NEARLY 15 THE FIGURE WAS 28 IN 1986 AND RAISED EXPORT PRICES ON CERTAIN PRODUCTS SUCH AS VCRS SOME ANALYSTS CREDITED MATSUSHITA'S PRESIDENT YOICHI MORISHITA WITH SETTING A NEW DIRECTION FOR THE COMPANY MR MORISHITA TOOK THE REINS IN FEBRUARY AFTER AKIO TANII WAS OUSTED FROM THE POST BY MATSUSHITA'S BOARD CHUCK GOTO AN ANALYST WITH SG WARBURG JAPAN INC SAID MR MORISHITA HAS CONCENTRATED ON CUTTING COSTS SHORTENING PRODUCTDEVELOPMENT CYCLES AND EXPANDING CONTROL OVER CERTAIN BUSINESS AREAS AS FOR EXAMPLE WHEN THE COMPANY IN MAY BOUGHT OUT A CHIP COMPANY THAT HAD BEEN A JOINT VENTURE WITH PHILIPS ELECTRONICS NV OF THE NETHERLANDS FUTURE EARNINGS GROWTH MAY DEPEND LARGELY ON WHEN THE JAPANESE ECONOMY TURNS AROUND MATSUSHITA ALSO COULD HAVE A HIT WITH A NEW FLATSCREEN TELEVISION THAT IT PLANS TO START SELLING IN JAPAN IN OCTOBER ANALYSTS SAID 9308250115 930825 BELL ATLANTIC CLEARED TO OFFER VIDEO PROGRAMS COURT RULING IF UPHELD COULD REVAMP RIVALRY OF PHONE CABLE FIRMS BY DANIEL PEARL AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL BELL ATLANTIC CORP RECEIVED A GREEN LIGHT TO ENTER THE VIDEOPROGRAMMING BUSINESS IN A FEDERAL COURT RULING THAT COULD RESHAPE THE COMPETITION BETWEEN TELEPHONE COMPANIES AND CABLE OPERATORS A FEDERAL DISTRICT JUDGE IN ALEXANDRIA VA DECLARED UNCONSTITUTIONAL ON FIRST AMENDMENT GROUNDS A PROVISION OF THE 1984 CABLE ACT THAT PREVENTS TELEPHONE COMPANIES FROM SELLING VIDEO PROGRAMMING TO SUBSCRIBERS IN THEIR OWN TELEPHONE SERVICE AREA IF THE RULING BY JUDGE TS ELLIS III IS UPHELD ON APPEAL IT WOULD GIVE TELEPHONE COMPANIES AN INCENTIVE TO SPEND BILLIONS OF DOLLARS BUILDING NEW FIBEROPTIC NETWORKS TO PROVIDE BOTH TELEPHONE AND VIDEO SERVICES WHILE TELEPHONE COMPANIES ALREADY HAD THE RIGHT TO TRANSMIT PROGRAMMING SERVICES OVER THEIR PHONE LINES THEY HAD TO SELL THE TRANSMISSION SERVICES TO OUTSIDERS BUT UNDER BELL ATLANTIC'S VIRGINIA PLAN A BELL ATLANTIC UNIT WOULD BE ONE OF THE CUSTOMERS OF C&P TELEPHONE THE BELL ATLANTIC SUBSIDIARY BUILDING THE VIDEO NETWORK THIS RULING IS BAD NEWS FOR CONSUMERS AND WILL LIKELY BE REVERSED ON APPEAL SAID DECKER ANSTROM ACTING PRESIDENT OF THE NATIONAL CABLE TELEVISION ASSOCIATION MR ANSTROM SAID TELEPHONE COMPANIES SHOULD BE PREVENTED FROM PROVIDING VIDEO IN THEIR LOCAL SERVICE AREAS BECAUSE THEY HAVE POWERFUL FINANCIAL INCENTIVES TO PAD CUSTOMERS' BILLS WITH EXPENSES THAT SHOULD BE PAID BY SHAREHOLDERS NOT TELEPHONE RATE PAYERS BUT BELL ATLANTIC DISMISSED THAT FEAR AS SCIENCE FICTION AND SAID CONSUMERS WOULD BENEFIT FROM INCREASED COMPETITION JUDGE ELLIS IN HIS RULING SAID FEARS ABOUT CROSSSUBSIDIES SHOULD BE ADDRESSED THROUGH REGULATIONS BUT COULDN'T BE ALLOWED TO ABRIDGE FREEDOM OF SPEECH A JUSTICE DEPARTMENT SPOKESMAN SAID NO DECISION HAD BEEN MADE YET ON AN APPEAL THE GOVERNMENT ALMOST ALWAYS APPEALS RULINGS THAT DECLARE LAWS UNCONSTITUTIONAL BUT THE DEPARTMENT'S ANTITRUST DIVISION AS JUDGE ELLIS NOTED ARGUED FOR GETTING RID OF THE PROGRAMMING BAN ON TELEPHONE COMPANIES THE CLINTON ADMINISTRATION HASN'T MADE ITS POSITION CLEAR YET UNTIL A HIGHER COURT WEIGHS IN THE BELL ATLANTIC RULING LEAVES SEVERAL QUESTIONS UNANSWERED ONE IS WHETHER OTHER TELEPHONE COMPANIES CAN TAKE ADVANTAGE OF THE RULING JUDGE ELLIS DECLARED THE CABLEACT PROVISION UNCONSTITUTIONAL ON ITS FACE MEANING THE RULING TECHNICALLY APPLIES NATIONWIDE BUT OTHER TELEPHONE COMPANIES WOULD LIKELY SEEK SIMILAR RULINGS BEFORE ACTING BELL ATLANTIC OFFICIALS SAID THE RULING DOES APPLY IN ALL SEVEN MIDATLANTIC STATES WHERE THE COMPANY OPERATES BUT THE FEDERAL COMMUNICATIONS COMMISSION SAID THAT QUESTION IS BEING ACTIVELY REVIEWED AND DEBATED BY THE FCC AND JUSTICE DEPARTMENT ALSO IT'S UNCLEAR IF THE COURT RULING WILL ALLOW TELEPHONE COMPANIES TO BUY CABLE COMPANIES IN THEIR SERVICE AREAS THAT WAS PROHIBITED BY THE SAME PROVISION JUDGE ELLIS DECLARED UNCONSTITUTIONAL BUT JAMES QUELLO ACTING CHAIRMAN OF THE FCC SAID CONGRESS WOULD HAVE TO RESTORE A BAN TO KEEP TELEPHONE COMPANIES FROM ELIMINATING LOCAL VIDEO COMPETITION BY BUYING OUT THE LOCAL CABLE COMPANY IN OTHER WAYS THOUGH MR QUELLO SAID THE BELL ATLANTIC RULING MAY SPUR WASHINGTON TO LOOSEN ITS REGULATION OF BOTH INDUSTRIES HE SAID THE RULING COULD ACT AS A CATALYST FOR CONGRESS TO LET TELEPHONE COMPANIES INTO PROGRAMMING AND WITH COMPETITION FROM TELEPHONE AND DIRECTBROADCASTSATELLITE HE SAID YOU DON'T HAVE TO HAVE RATE REGULATION OF CABLE THE FCC IS IMPLEMENTING A NEW LAW THAT RESTORES SOME RATE REGULATION ON CABLE OPERATORS THIS CREATES A CRISIS FOR THE POLICYMAKING REGIME IN WASHINGTON SAID PETER BERNSTEIN AN ANALYST WITH PROBE RESEARCH IN CEDAR KNOLLS NJ NOTING THAT TELEPHONE COMPANIES AND CABLE COMPANIES MAY END UP PROVIDING IDENTICAL SERVICES BUT HAVE TWO SEPARATE SETS OF REGULATIONS THE PHONE COMPANIES HAVE EAGERLY WAITED TO OFFER VIDEO SERVICES WHICH ARE EXPECTED TO BE A LUCRATIVE BUSINESS SOON TELEPHONE COMPANIES COULD TAP INTO MILLIONS OF DOLLARS IN POTENTIAL REVENUE FROM INTERACTIVE SERVICES SUCH AS VIDEO GAMES HOME SHOPPING AND MOVIESONDEMAND MEANWHILE CABLE COMPANIES ARE EXPECTED TO GIVE TELEPHONE COMPANIES A RUN FOR THEIR MONEY WHEN THE FCC AWARDS LICENSES TO OFFER WIRELESS PHONE SERVICE OVER CABLE KNOWN AS PERSONAL COMMUNICATIONS SERVICES ALREADY MANY CABLE COMPANIES SUCH AS COMCAST CORP AND COX ENTERPRISES INC OPERATE FIBEROPTIC PHONE NETWORKS SERVING BIG BUSINESSES AND LONGDISTANCE CARRIERS AND TELEPHONE AND CABLE COMPANIES ARE STARTING TO BUILD SYSTEMS TOGETHER IN THE UNITED KINGDOM IN THE US BELL ATLANTIC WHICH IS BASED IN PHILADELPHIA HAS BEEN ONE OF THE MOST AGGRESSIVE CHALLENGERS OF THE DIVISION BETWEEN VIDEO AND PHONE SERVICE IN TOMS RIVER NJ IT IS REBUILDING ITS PHONE NETWORK SO ANOTHER COMPANY CAN USE IT TO COMPETE WITH THE LOCAL CABLE OPERATOR AND IN ALEXANDRIA IT TOOK THAT STRATEGY ONE STEP FURTHER LATE LAST YEAR BY PROPOSING TO SELL THE PROGRAMMING ITSELF THE ALEXANDRIA VENTURE AVAILABLE EVENTUALLY TO 60000 CUSTOMERS WOULD INCLUDE INTERACTIVE SERVICES BUT ALSO FAMILIAR CABLE FARE AND PAYPERVIEW MOVIES UNDER THE 1992 CABLE ACT PROGRAMMERS ARE REQUIRED TO SELL TO CABLE'S COMPETITORS UNDER THE SAME TERMS IF YESTERDAY'S COURT RULING STANDS BELL ATLANTIC STILL WILL HAVE TO PASS OTHER HURDLES INCLUDING GETTING FCC APPROVAL FOR AN ALEXANDRIA LICENSE AND SECURING A FRANCHISE FROM THE CITY THE COMPANY SAID IT WOULD PROBABLY TAKE A YEAR TO START HOOKING UP CUSTOMERS AND THAT IT HASN'T DETERMINED A PRICE STRUCTURE YET NOT SURPRISINGLY TELEPHONE COMPANIES HAILED YESTERDAY'S RULING WE ALL FIGURE THIS MEANS WE'RE GOING TO WIN MAYBE NOT TODAY BUT SOMEDAY SAID ALAN CIAMPORCERO SENIOR COUNSEL FOR PACIFIC TELESIS IN WASHINGTON 9308250114 930825 ENCYCLOPAEDIA BRITANNICA WORK CHICAGO ENCYCLOPAEDIA BRITANNICA INC SAID IT HAS AGREED WITH HUNGARIAN PUBLISHER MAGYAR VILAG KIADO KFT TO CREATE AN 18VOLUME HUNGARIANLANGUAGE ENCYCLOPEDIA THAT WILL BE BASED UPON THE ENCYCLOPAEDIA BRITANNICA THE COMPANY SAID THE FIRST VOLUME IS PROJECTED FOR PUBLICATION BEFORE DEC 31 1994 WITH THE REMAINDER ISSUED THROUGH DEC 31 2000 IT SAID THE VENTURE'S COCHAIRMEN WILL BE FRANK GIBNEY VICE CHAIRMAN OF BRITANNICA'S BOARD OF EDITORS AND PROFESSOR ERNO PUNGOR A MEMBER OF THE HUNGARIAN ACADEMY OF SCIENCES 9308250113 930825 HP TEAM TO VIE FOR NAVY SALES PALO ALTO CALIF HEWLETTPACKARD CO SAID IT TEAMED WITH SCIENCE APPLICATIONS INTERNATIONAL CORP AND HARRIS CORP TO COMPETE FOR THE NAVY'S PROCUREMENT OF TACTICAL COMPUTER WORKSTATIONS UNDER THE TACTICAL ADVANCED COMPUTER4 PROGRAM THE COMPANY SAID THE PROGRAM HAS AN ESTIMATED VALUE OF MORE THAN 2 BILLION AND THAT HP WILL SERVE AS THE PRIME CONTRACTOR AND PROGRAM MANAGER AND WILL PROVIDE WORKSTATIONS AND RELATED HARDWARE AND SOFTWARE 9308250112 930825 INTERNATIONAL PARMALAT RIGHTS OFFERING MILAN PARMALAT FINANZIARIA SPA OF ITALY SAID ITS 427 BILLIONLIRE 267 MILLION RIGHTS ISSUE HAD BEEN 9961 TAKEN UP BY SHAREHOLDERS THE RIGHTS ISSUE WHICH WAS ANNOUNCED IN MAY RAN FROM JULY 16 TO AUG 16 PARMALAT MADE A SHARE SPLIT ALONG WITH THE RIGHTS ISSUE CHANGING THE NOMINAL VALUE OF ITS ORDINARY SHARES TO 1000 LIRE FROM 10000 LIRE PARMALAT FINANZIARIA IS THE HOLDING COMPANY OF PARMALAT SPA A DAIRY PRODUCTS COMPANY 9308250111 930825 MARTIN MARIETTA TO SHUT PLANT BETHESDA MD MARTIN MARIETTA CORP SAID IT WILL CLOSE A SAN JOSE CALIF FACILITY EARLY NEXT YEAR BECAUSE THE GOVERNMENT PLANS TO STOP FINANCING DEVELOPMENT OF A PROGRAM TO BUILD A NUCLEAR REACTOR IN SPACE THE CLOSURE WILL RESULT IN THE ELIMINATION OF 110 JOBS IN SAN JOSE AND AS MANY AS 80 JOBS AT ANOTHER MARTIN MARIETTA FACILITY IN VALLEY FORGE PA GOVERNMENT FUNDING FOR THE SPACE POWER PROGRAM ENDS SEPT 30 A COMPANY SPOKESMAN SAID MARTIN MARIETTA AN AEROSPACE AND DEFENSE COMPANY EMPLOYS A TOTAL OF ABOUT 95000 PEOPLE 9308250110 930825 POLITICS & POLICY CLINTON OFFICIALS BOW TO PAPER COMPANIES ON US BUYING PLAN WASHINGTON CLINTON ADMINISTRATION OFFICIALS YIELDING TO PRESSURE FROM MAJOR PAPER COMPANIES ARE DRAWING BACK FROM A PLAN TO REQUIRE FEDERAL AGENCIES TO BUY TOTALLY CHLORINEFREE PAPER THE DECISION WHICH AWAITS FINAL WHITE HOUSE APPROVAL REPRESENTS A DEFEAT FOR ENVIRONMENTALISTS AND FOR LOUISIANAPACIFIC CORP THE PORTLAND ORE PAPER COMPANY IS BELIEVED TO BE THE ONLY US COMPANY WHOSE BLEACHED KRAFT SOFTWOOD PULP A KEY COMPONENT IN MOST PAPER IS TOTALLY CHLORINEFREE AN EXECUTIVE ORDER IS EXPECTED TO BE RELEASED NEXT MONTH BUT FINAL LANGUAGE ON THE MATTER HASN'T BEEN WORKED OUT HOWEVER AN ADMINISTRATION OFFICIAL SAID THE EXECUTIVE ORDER WHILE CALLING ON FEDERAL AGENCIES TO SET GOALS FOR PURCHASING PAPER WITH REDUCED CHLORINE CONTENT WON'T INSIST ON SETTING GOALS FOR PURCHASE OF PAPER THAT IS TOTALLY CHLORINEFREE THE OFFICIAL SAID THE DECISION WAS ARRIVED AT IN A MEETING OF ADMINISTRATION OFFICIALS LATE MONDAY SEPARATELY THE ADMINISTRATION HAS TENTATIVELY DECIDED TO LOWER THE REQUIRED PERCENTAGE OF POSTCONSUMER RECYCLED CONTENT IN PAPER PURCHASED BY THE FEDERAL GOVERNMENT TO 10 FROM 15 THE 10 REQUIREMENT IS EXPECTED TO APPEAR IN THE EXECUTIVE ORDER ALAN HERSHKOWITZ A SENIOR SCIENTIST AT THE NATURAL RESOURCES DEFENSE COUNCIL AN ENVIRONMENTAL GROUP SAID HE OPPOSED DROPPING THE TOTALLY CHLORINEFREE STANDARD BECAUSE PULP MILLS WILL CONTINUE TO DISCHARGE DIOXIN AN END PRODUCT OF THE CHLORINE USED TO BLEACH PULP THE ADVERSE ENVIRONMENTAL IMPACT ASSOCIATED WITH DIOXIN HAS BEEN WELL DOCUMENTED HE SAID 9308250109 930825 INTERNATIONAL AEG WINS MALAYSIA TRANSIT JOB FRANKFURT AP GERMANY'S AEG A UNIT OF DAIMLERBENZ AG RECEIVED A CONTRACT VALUED AT 320 MILLION MARKS 190 MILLION TO SUPPLY STREETCARS AND RELATED EQUIPMENT FOR THE MALAYSIAN CAPITAL KUALA LUMPUR AEG WHICH IS ALSO BUILDING A TRANSIT SYSTEM FOR SHANGHAI SAID IT WOULD START THIS FALL TO BUILD THE SYSTEM AND AIMS TO FINISH IN THREE YEARS 9308250108 930825 INTERNATIONAL SOUTH KOREA'S ECONOMIC GROWTH SEOUL SOUTH KOREA SOUTH KOREA'S ECONOMY GREW AT AN ANNUALIZED 42 RATE IN THE SECOND QUARTER OF THIS YEAR COMPARED WITH 33 IN THE PRECEEDING QUARTER THE BANK OF KOREA SAID SOUTH KOREA'S ECONOMIC GROWTH IS MEASURED IN TERMS OF GROSS NATIONAL PRODUCT THE TOTAL OUTPUT OF GOODS AND SERVICES INCLUDING THOSE THE NATION PRODUCES ABROAD SECONDQUARTER EXPORTS OF MERCHANDISE AND SERVICES SHOWED A PACE OF 7 COMPARED WITH AN ANNUALIZED 127 GAIN IN THE FIRST QUARTER THE BANK SAID THE SECONDQUARTER GROWTH IN EXPORTS WAS ALSO SHARPLY DOWN FROM 102 A YEAR AGO 9308250107 930825 BUSINESS BRIEF WESTVACO CORP FISCAL THIRDQUARTER PROFIT DECLINED 37 ON FLAT SALES WESTVACO CORP NEW YORK SAID FLAT SALES INTENSE COMPETITION AND FLAGGING INTERNATIONAL MARKETS PUSHED FISCAL THIRDQUARTER EARNINGS DOWN 37 FOR THE QUARTER ENDED JULY 31 THE PAPER PACKAGING AND CHEMICALS COMPANY REPORTED NET INCOME OF 225 MILLION OR 33 CENTS A SHARE COMPARED WITH 356 MILLION OR 54 CENTS A SHARE A YEAR EARLIER SALES EASED LESS THAN ONE PERCENT TO 586 MILLION THE COMPANY SAID IT EXPECTS ITS BLEACHEDBOARD BUSINESS TO EXPAND IN SEPTEMBER WHEN A NEW MACHINE IS BROUGHT ON LINE IN ADDITION WESTVACO SAID IT INCLUDES POSTCONSUMER RECYCLED FIBER IN ITS BLEACHEDBOARD PRODUCT LINE 9308250106 930825 WHO'S NEWS MCCAIN FOODS FAMILY FLAP REACHES CANADIAN COURT FLORENCEVILLE NEW BRUNSWICK A FAMILY DISPUTE INVOLVING LEADERSHIP SUCCESSION AT MCCAIN FOODS LTD ONE OF CANADA'S BIGGEST PRIVATE COMPANIES HAS SPILLED INTO COURT BUT DETAILS OF THE SUIT BROUGHT BY G WALLACE F MCCAIN AGAINST HIS BROTHER AND BUSINESS PARTNER H HARRISON MCCAIN REMAINED VEILED FROM PUBLIC VIEW A NEW BRUNSWICK COURT MONDAY EVENING RESTRICTED ACCESS TO THE CASE FILE AND BANNED PUBLICATION OF ITS CONTENTS AT THE REQUEST OF ONE OF SEVERAL OTHER FAMILY MEMBERS NAMED IN THE ACTION IN A PREPARED STATEMENT MCCAIN FOODS CONFIRMED THAT DIFFERENCES OF OPINION EXIST AMONG THE SHAREHOLDERS WITH REGARD TO THE SUCCESSION ISSUE AND OTHER MATTERS AT THE NEW BRUNSWICK MAKER OF FRENCH FRIES AND OTHER FROZEN FOODS THE FAMILY SHAREHOLDERS ARE NOW TRYING TO RESOLVE THESE DIFFERENCES IN AN ORDERLY MANNER ANDREW MCCAIN NEPHEW OF WALLACE AND HARRISON AND CHAIRMAN OF A FAMILY HOLDING COMPANY SAID IN A TELEPHONE INTERVIEW THAT HE REQUESTED THE PUBLICATION BAN TO AFFORD MY FAMILY AS MUCH PRIVACY AS COULD BE OBTAINED HE ADDED SUCCESSION IS NOT A CHALLENGE THAT'S UNIQUE TO THE MCCAINS HARRISON 65 YEARS OLD AND WALLACE 63 EACH HAVE CHILDREN WHO WORK IN THE FAMILY BUSINESS MCCAIN FOODS HAD C3 BILLION US227 BILLION IN WORLDWIDE SALES IN ITS LATEST FISCAL YEAR 9308250105 930825 BUSINESS BRIEF GRANCARE INC COMPANY AGREES TO ACQUIRE COMPUPHARM IN STOCK DEAL GRANCARE INC AN OPERATOR OF LONGTERM HEALTH CARE FACILITIES SAID IT AGREED TO ACQUIRE COMPUPHARM INC FOR 61 MILLION IN GRANCARE STOCK COMPUPHARM PROVIDES PHARMACY SERVICES TO HEALTH CARE FACILITIES AND OUTPATIENT CLINICS IN SEVEN STATES THE CLOSELY HELD CONCERN BASED IN WHIPPANY NJ HAS ANNUAL REVENUE OF ABOUT 70 MILLION GRANCARE BASED IN CULVER CITY CALIF SAID THE PROPOSED ACQUISITION WOULD SIGNIFICANTLY EXPAND ITS PHARMACY OPERATIONS COMPLETION OF THE COMPUPHARM ACQUISITION SUBJECT TO VARIOUS APPROVALS IS EXPECTED BY NOV 30 GRANCARE SAID GRANCARE REPORTED 1992 NET INCOME OF 99 MILLION OR 108 A SHARE GRANCARE SAID THE COMPUPHARM ACQUISITION WILL INCREASE ITS REVENUE BY 19 BASED ON GRANCARE'S REVENUE OF 387 MILLION FOR THE 12 MONTHS ENDED JUNE 30 GRANCARE ALSO WILL ASSUME ABOUT 16 MILLION OF COMPUPHARM DEBT AFTER THE ANNOUNCEMENT GRANCARE SHARES WERE QUOTED YESTERDAY IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE AT 18875 UP 375 CENTS 9308250104 930825 PLUM CREEK REDEEMS INTEREST SEATTLE PLUM CREEK TIMBER CO SAID IT WILL REDEEM 1250000 DEFERRED PARTICIPATION INTERESTS FOR 4950 EACH WITH THE TRANSACTION EXPECTED TO CLOSE NEXT MONDAY THE DEFERRED INTERESTS ARE A CLASS OF LIMITEDPARTNER INTERESTS THAT UNLIKE THE PARTNERSHIP'S PUBLICLY TRADED 135 MILLION UNITS CURRENTLY AREN'T FREELY TRADABLE AND DON'T RECEIVE CASH DISTRIBUTIONS OR REGULAR TAXABLE INCOME 9308250103 930825 CANADA'S ROYAL BANK LIFTS PRIME OTTAWA ROYAL BANK OF CANADA A MAJOR CANADIAN BANK RAISED ITS PRIME LENDING RATE ONEQUARTER PERCENTAGE POINT TO 6 EFFECTIVE TODAY THE PRIME RATE INCREASE WAS PROMPTED BY AN UPSWING IN CANADIAN SHORTTERM INTEREST RATES WHICH WAS BROUGHT ON BY A FALL IN THE CANADIAN DOLLAR IN RECENT WEEKS THE CANADIAN CURRENCY HAS DROPPED MORE THAN 2 AGAINST ITS US COUNTERPART SINCE EARLY AUGUST THE CANADIAN DOLLAR CLOSED IN TORONTO YESTERDAY AT 7583 US CENTS CANADA'S OTHER MAJOR BANKS LEFT THEIR PRIME RATES UNCHANGED AT 575 THE LOWEST LEVEL IN 26 YEARS THE PRIME RATE IS A BENCHMARK FOR VARIOUS LENDING CHARGES 9308250102 930825 MARKETING ATTEMPT TO CUT CANDY CALORIES SOURS FOR P&G BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL LOWCALORIE CANDY BARS APPARENTLY AREN'T WHETTING CHOCOLATE LOVERS' APPETITES A DEVELOPMENT WHICH HAS CANDY MAKERS SCRAMBLING TO REASSESS MARKETING PLANS IT ALSO IS PROVING TROUBLESOME TO PROCTER & GAMBLE CO WHICH MAKES A LOWCALORIE FAT PRODUCT USED IN SOME CONFECTIONS ACCORDING TO A SUIT FILED BY P&G MARS INC HAS DELAYED A NATIONAL ROLLOUT OF ITS LOWCALORIE MILKY WAY II A CANDY BAR THAT USES THE P&G PRODUCT CALLED CAPRENIN AND HERSHEY FOODS CORP WHICH INTRODUCED HERSHEY'S REDUCED CALORIE AND FAT CANDY BAR IN LIMITED TEST MARKETS LAST SEPTEMBER HAS ENDED THE TEST AND IS REVIEWING THE RESULTS THE COMPANY BASED IN HERSHEY PA SAYS IT HASN'T DECIDED WHAT TO DO WITH THE CONFECTION WE'RE NOT REALLY SURE WHAT THE MARKET IS FOR THIS KIND OF PRODUCT A HERSHEY SPOKESWOMAN SAYS THE ISSUE IS WHETHER CONSUMERS WANT THE REAL THING CALORIES FAT AND ALL WHEN THEY INDULGE IN CANDY BARS OR WHETHER THEY ARE WILLING TO SKIMP ON TASTE AS WELL AS CALORIES HERSHEY SAYS ITS TESTMARKET CANDY BAR SIMPLY DIDN'T TASTE AS RICH AS ITS REGULAR CHOCOLATE BARS THOUGH IT STILL HAD EXCELLENT TASTE AND MOUTH FEEL ONE HERSHEY'S REDUCED CALORIE AND FAT BAR CONTAINED 150 CALORIES 25 FEWER THAN A REGULAR HERSHEY'S MILK CHOCOLATE BAR INDEED SAYS DAVID LEIBOWITZ AN ANALYST WITH REPUBLIC NEW YORK SECURITIES CORP WHEN THE CONSUMER WANTS A CHOCOLATE FIX HE WANTS TO MAXIMIZE THE SWEETNESS MR LEIBOWITZ SAYS MARS'S MILKY WAY II IS A VICTIM OF THIS APPETITE FOR INDULGENCE IT HAS NOT SCORED AS HIGH AS SOME OBSERVERS HAD ORIGINALLY EXPECTED HE SAYS IF IT HAD BEEN AS SUCCESSFUL AS ORIGINALLY HOPED IT WOULD HAVE GONE INTO NATIONAL DISTRIBUTION CAUGHT IN THE MIDDLE IS P&G WHICH DEVELOPED CAPRENIN THE PRODUCT WAS ONCE HAILED AS THE NUTRASWEET OF THE CHOCOLATE INDUSTRY WHICH HAS TRADITIONALLY RELIED HEAVILY ON RICHER COCOA BUTTER AND OTHER FATS IN JANUARY 1992 NEWS THAT MARS HAD BECOME P&G'S FIRST CAPRENIN CUSTOMER CAUSED THE CINCINNATI CONSUMER PRODUCTS AND FOOD COMPANY'S STOCK TO RISE TODAY HOWEVER P&G SAYS MARS AND HERSHEY ARE THE ONLY COMPANIES WHICH HAVE PURCHASED CAPRENIN AND HERSHEY WHEN ASKED ABOUT ITS CONTRACT WITH P&G CAUTIONS THAT NO NEW PRODUCT OR PRODUCT DEVELOPMENT IMPLICATIONS SHOULD BE INFERRED FROM THAT RELATIONSHIP ANALYSTS ARE UNCERTAIN ABOUT CAPRENIN'S PROSPECTS AND P&G'S ABILITY TO PARLAY IT INTO A BIG MONEYMAKER THE RECENT DEVELOPMENTS SAYS BONITA AUSTIN AN ANALYST WITH LEHMAN BROS DON'T BODE VERY WELL FOR PROCTER'S PRODUCT P&G IS SUING MARS FOR MORE THAN 10 MILLION IN DAMAGES CLAIMING THE CANDY MAKER BACKED OUT OF AN AGREEMENT TO BUY CAPRENIN P&G SAYS CLOSELY HELD MARS RENEGED ON THE CONTRACT AFTER DECIDING TO DELAY NATIONAL DISTRIBUTION OF MILKY WAY II THE CANDY BAR WHICH IS AVAILABLE ONLY IN SOME MARKETS IN THE WEST AND THE NORTHEAST HAS 190 CALORIES 25 FEWER CALORIES THAN THE ORIGINAL MILKY WAY THE SUIT FILED IN HAMILTON COUNTY OHIO COURT OF COMMON PLEAS SAYS MARS PLACED AN INITIAL ORDER IN MAY 1991 FOR TWO YEAR'S WORTH OF CAPRENIN IN MAY 1992 THE SUIT SAYS MARS PUT IN ANOTHER ORDER FOR 24 MILLION POUNDS INTENDED TO LAST THROUGH 1994 HOWEVER ACCORDING TO THE SUIT MARS TOLD P&G LAST DECEMBER THAT IT WOULD REFUSE TO ACCEPT FURTHER SHIPMENTS OF CAPRENIN MARS INDICATED THAT IT HAD DECIDED TO DELAY COMMENCEMENT OF NATIONAL DISTRIBUTION OF THE MILKY WAY II THE SUIT CONTINUES MARS HAS SINCE THAT TIME REFUSED TO ACCEPT OR PAY FOR ANY FURTHER AMOUNTS OF CAPRENIN MARS MCLEAN VA DECLINES TO DISCUSS THE LAWSUIT A SPOKESWOMAN ALSO WON'T DISCUSS WHETHER MARS HAS PLANNED OR INTENDS TO LAUNCH A NATIONAL ROLLOUT OF MILKY WAY II SAYING ONLY WE'VE BEEN PLEASED WITH HOW MILKY WAY II IS DOING MARS DOESN'T APPEAR TO BE IN A RUSH TO INTRODUCE MILKY WAY II NATIONALLY IT LAUNCHED THE PRODUCT IN THE WEST IN APRIL 1992 AND IN THE NORTHEAST NEARLY A YEAR AGO WE'VE BEEN VERY CAREFUL NOT TO TALK ABOUT ANY FUTURE MARKETING PLANS OR STRATEGIES THE MARS SPOKESWOMAN SAYS IN THE SUIT P&G CLAIMS IT HAS INCURRED DAMAGES AND LIABILITY FOR MORE THAN 16 MILLION POUNDS OF CAPRENIN AND CAPRENINRELATED INGREDIENTS WHICH IT SAYS MARS AGREED TO BUY BEFORE BREAKING THE CONTRACT THE MORE THAN 10 MILLION IN DAMAGES BEING SOUGHT INCLUDE 39 MILLION FOR THE COST OF THE CAPRENIN EXCLUDING THE COST OF STORAGE AND SPOILAGE PREVENTION EFFORTS WE REGRET HAVING TO TAKE THIS STEP BUT WE FELT THAT IT WAS OUR ONLY RECOURSE AFTER SEVERAL MONTHS OF WORKING WITH MARS TO RESOLVE THIS IN OTHER WAYS SAYS A P&G SPOKESWOMAN 9308250101 930802 ALTERNATIVE MEDICINE GETS OFFICIAL STUDY NIH ASSESSES UNCONVENTIONAL CANCER TREATMENTS BY CHRIS FRAMPTON STAFF REPORTER OF THE WALL STREET JOURNAL EMMANUEL REVICI 96 YEARS OLD HAS BEEN WORKING ON A CANCER TREATMENT CALLED BIOLOGICAL GUIDED CHEMOTHERAPY HIS ENTIRE LIFE BUT FEW MEDICAL PROFESSIONALS HAVE EVER TAKEN HIM SERIOUSLY OPINIONS ARE CHANGING DR REVICI WHO HAS TREATED SOME CANCERS WITH TWO CUPS OF COFFEE AND TWO EGGS HAS STARTED TO GARNER A LITTLE RESPECT ALONG WITH OTHER PRACTIONERS OF SOCALLED ALTERNATIVE MEDICINE THE NATIONAL INSTITUTES OF HEALTH WHICH HAS JUST GEARED UP AN ALTERNATIVE MEDICINE OFFICE WILL CONDUCT A STUDY OF WHETHER THE REVICI METHOD CAN CURE CANCER OTHER TREATMENTS OUT OF THE MAINSTREAM SUCH AS BEE POLLEN FOR ALLERGIES WHICH THE NIH ALSO IS STUDYING ARE SEEMING LESS FLAKY THE NEW ENGLAND JOURNAL OF MEDICINE REPORTS THAT UP TO A THIRD OF ALL AMERICANS TURN TO ALTERNATIVE TREATMENTS EVERY YEAR BIG INSURERS INCREASINGLY ARE PAYING FOR UNORTHODOX TREATMENTS KYL GREEN DIRECTOR OF MANAGED CARE AT THE HEALTH INSURANCE ASSOCIATION OF AMERICA SAYS INSURERS LIKE ALTERNATIVE MEDICINES BECAUSE THEY ARE CHEAP IF YOU CAN PREVENT DISEASE AND YOU CAN AVOID SURGERY COSTS ARE GOING TO STAY LOW THE LOW COSTS ALSO APPEAL TO MEMBERS OF CONGRESS WHICH SPEARHEADED THE NIH OFFICE OF ALTERNATIVE MEDICINE IN 1991 AFTER A SLOW START THE NIH OFFICE NOW IS GETTING DOWN TO WORK IT WILL ANALYZE THE BENEFITS OF ATTACKING CANCER THROUGH DR REVICI'S TREATMENTS AND WILL ASSESS THE CANCERFIGHTING CHARACTERISTICS OF SHARK CARTILAGE AND ONE OTHER ANTICANCER TREATMENT IN ADDITION THE NIH WILL STUDY THE BENEFITS OF BEE POLLEN IN TREATING ALLERGIES THE PROGRAM WILL FUND PRELIMINARY STUDIES OF 20 OTHER UNCONVENTIONAL CURES ALTHOUGH SCIENTIFIC STUDIES OF ALTERNATIVE TREATMENTS ARE PROLIFERATING RESULTS CAN BE HARD TO PROVE ALTERNATIVE MEDICINE IS LIKE A RELIGION SAYS BARRIE CASSILTH AUTHOR OF PSYCHOSOMATIC MEDICINE MOST OF THE RESULTS ARE UNUSUAL AND HARD TO EXPLAIN PEOPLE JUST TRUST THEM DR REVICI WHO PUBLISHED HIS FIRST MEDICAL BOOK AT AGE 12 BASES HIS TREATMENT ON THE PREMISE THAT EACH PATIENT IS A SEPARATE BIOLOGICAL ENTITY VIEWING CANCER AS A SIGN THAT THE BODY IS BIOLOGICALLY OUT OF WHACK DR REVICI TAILORS A STRATEGY FOR EACH PATIENT IT MIGHT BE AS SIMPLE AS HIGHER INTAKE OF CAFFEINE OR AS ESOTERIC AS DOSES OF SELENIUM A RARE CHEMICAL A 1988 AMERICAN CANCER SOCIETY STUDY STRONGLY URGED THAT INDIVIDUALS WITH CANCER NOT SEEK TREATMENT WITH THE REVICI METHOD AND IN 1983 THE NEW YORK STATE DEPARTMENT OF HEALTH SUSPENDED THE DOCTOR'S LICENSE CHARGING FRAUD HIS LICENSE LATER WAS REINSTATED WITH RESTRICTIONS NIH OFFICIALS AREN'T SURE WHAT TO MAKE OF DR REVICI'S METHODS BUT GIVEN HIS AGE THEY WANT TO MOVE QUICKLY THERE IS A CERTAIN IMMEDIACY TO THE NEED TO STUDY DR REVICI'S WORK SAYS ONE NIH OFFICIAL THERE IS A LOT OF POTENTIAL HERE BUT HE IS THE ONLY ONE WHO UNDERSTANDS COMPLETELY HOW HIS TREATMENT WORKS THE NIH ALSO PLANS TO STUDY THE WORK OF ROYDON BROWN WHO SOLD FOUR BANKS 50 YEARS AGO IN ORDER TO HARVEST BEE POLLEN FOR MEDICAL USES ONE OF MR BROWN'S BOOSTERS AND PATIENTS IS SEN TOM HARKIN D IOWA ACCORDING TO AN AIDE THE SENATOR ORIGINALLY TOOK SEVERAL DOZEN OF MR BROWN'S TABLETS FOR ALLERGIES AND IMMEDIATELY FELT HIS SYMPTOMS RECEDE A DRAWBACK SAY DOCTORS IS THAT FOLLOWING TREATMENTS PATIENTS OFTEN ATTRACT LARGE NUMBERS OF BEES TAKING HIS HARDSELL APPROACH TO THE WHITE HOUSE MR BROWN EARLIER THIS YEAR WROTE HILLARY CLINTON THAT HER HUSBAND IS PROBABLY GOING TO DEVELOP THROAT AND VOICE CANCER AND DIE IF HE DOES NOT USE THE BEE POLLEN TREATMENT THE WHITE HOUSE HAS NOT OFFICIALLY RESPONDED SHARK CARTILAGE WILL BE STUDIED FOR ITS CANCERFIGHTING POWERS IN THEIR BOOK SHARK'S DON'T GET CANCER I WILLIAM LANE AND LINDA COMAC ARGUE THAT A SUBSTANCE IN CARTILAGE PREVENTS THE GROWTH OF CANCER IN SHARKS AND COULD DO THE SAME IF IT WERE INJECTED IN PEOPLE THE SUBSTANCE INHIBITS THE DEVELOPMENT OF NEW BLOOD SYSTEMS THAT WOULD NOURISH A GROWING CANCEROUS TUMOR DR LANE SAYS THE AUTHOR CONCEDES THAT IN RARE CASES SHARKS DEVELOP CANCER BUT HE INSISTS THAT THE THEORY STILL HOLDS UP FRANK WIEWEL FOUNDER OF PEOPLE AGAINST CANCER IN OTHO IOWA SAYS THERE IS GOOD EVIDENCE NOT PROOF MIND YOU THAT SHARK CARTILAGE MAY BE EFFECTIVE IN PREVENTING CANCER MEANWHILE STANISLAW BURZYNSKI BELIEVES THAT CANCER SUFFERERS ARE MAINLY DEFICIENT OF PEPTIDES DERIVATIVES OF AMINO ACIDS ADMINISTERED IN SMALL DOSAGES AND AT THE RIGHT TIMES THESE SUBSTANCES CAN FIGHT CANCEROUS GROWTHS HE SAYS A CLAIM THE NIH WILL ASSESS OF THE VARIOUS ALTERNATE TREATMENTS PEPTIDES HAVE GAINED A MEASURE OF RESPECTABILITY RALPH MOSS AUTHOR OF CANCER THERAPY NONTOXIC TREATMENT AND PREVENTION SAYS DR BURZYNSKI HAS DONE THE WORK NECESSARY AND GATHERED STRONG EVIDENCE THAT MIGHT MEAN WE COULD BE LOOKING AT A CURE FOR SOME TYPES OF CANCER FOR RYAN WERTHWEIN A NEW JERSEY BOY DR BURZYNSKI'S TREATMENT SEEMS NOTHING SHORT OF A MIRACLE AFTER ORTHODOX TREATMENTS SHOWED LITTLE SUCCESS IN TREATING A BRAIN TUMOR THE FAMILY BEGAN THREE YEARS OF DR BURZYNSKI'S PEPTIDE THERAPY ACCORDING TO HIS FAMILY THE TUMOR WAS DESTROYED AND RYAN IS BACK IN SCHOOL SUFFERING ONLY FROM SIDE EFFECTS OF THE UNSUCCESSFUL TREATMENTS FIRST TRIED LIKE DR REVICI DR BURZYNSKI HAS HAD HIS SHARE OF PROBLEMS SINCE 1988 THE TEXAS BOARD OF MEDICAL EXAMINERS HAS BEEN INVESTIGATING THE BURZYNSKI RESEARCH INSTITUTE IN HOUSTON FOR FRAUD AND TREATING PATIENTS WITH THERAPIES THAT HAVE NOT BEEN APPROVED BY THE FOOD AND DRUG ADMINISTRATION THE AMERICAN CANCER SOCIETY ALSO REMAINS COOL TOWARD HIM STILL THE EVIDENCE SUGGESTS THAT VARIOUS ALTERNATIVE TREATMENTS HAVE HELPED SOME PATIENTS SAYS DR MOSS THE CANCER AUTHOR WE HAVE SEEN AMAZING RESULTS WITH PEPTIDES AND THE OTHER THREE TREATMENTS THAT IS WHY WE WANT TO STUDY THEM BARRIE CASSILETH WAS INCORRECTLY IDENTIFIED AS THE AUTHOR OF PSYCHOSOMATIC MEDICINE AND HER LAST NAME WAS MISSPELLED IN AN AUG 2 ARTICLE ON ALTERNATIVE MEDICINE DR CASSILETH IS AN ADJUNCT PROFESSOR OF MEDICINE AT THE UNIVERSITY OF NORTH CAROLINA 9308250100 930825 BUSINESS BRIEF GENERAL SIGNAL CORP REVCO SCIENTIFIC ACQUISITION SET FOR 84 MILLION IN STOCK GENERAL SIGNAL CORP SAID IT AGREED TO ACQUIRE REVCO SCIENTIFIC INC FOR ABOUT 84 MILLION IN STOCK GENERAL SIGNAL SAID THE MERGER IS EXPECTED TO RESULT IN A TRANSACTION CHARGE OF 23 MILLION AND A CONSOLIDATION CHARGE OF 8 MILLION THE TRANSACTION IS EXPECTED TO CLOSE IN LATE SEPTEMBER OR EARLY OCTOBER REVCO BASED IN ASHEVILLE NC IS A CLOSELY HELD MAKER OF ULTRALOW TEMPERATURE FREEZERS REFRIGERATORS AND INCUBATORS FOR LABORATORIES HOSPITALS BLOOD BANKS AND OTHER USES IT HAD 1992 SALES OF 56 MILLION REVCO WILL BE MERGED WITH GENERAL SIGNAL'S LINDBERG OPERATION WHICH MAKES LAB FURNACES AND OVENS THE COMBINED UNIT IS EXPECTED TO HAVE SALES IN 1994 OF ABOUT 110 MILLION THE COMPANY SAID GENERAL SIGNAL WITH 1992 SALES OF 16 BILLION IS A STAMFORD CONN MANUFACTURER OF EQUIPMENT AND INSTRUMENTS FOR THE PROCESS CONTROL ELECTRICAL AND INDUSTRIAL TECHNOLOGY INDUSTRIES 9308250099 930825 MANAGING YOUR CAREER BY JOANN S LUBLIN FOREIGN ASSIGNMENTS ARE PROPELLING PLENTY OF CAREERS AS THE GLOBALIZATION OF BUSINESS QUICKENS BUT DON'T RUSH TO LEAVE THE COUNTRY WITH CORPORATE DOWNSIZING DRIVES ALSO SPREADING YOU FACE GREATER RISK THAN EVER OF GETTING LOST IN THE SHUFFLE WHEN YOUR EMPLOYER MOVES YOU THOUSANDS OF MILES AWAY AT THE SAME TIME MANY PEOPLE UNDERESTIMATE THE STRESS OF COMING HOME FOLLOWING AN EXPERIENCE ABROAD I DIDN'T MANAGE MY REPATRIATION WELL AT ALL SAYS PAUL TOM WHO QUIT BENEFITS CONSULTANTS HEWITT ASSOCIATES IN MAY 1992 JUST 10 MONTHS AFTER TRANSFERRING TO ITS LINCOLNSHIRE ILL HEADQUARTERS FROM SINGAPORE THE CULTURAL SHOCK OF COMING BACK WAS MORE THAN I THOUGHT HE ADDS YOU JUST LOSE TOUCH WITH CORPORATE DISCIPLINE FORTUNATELY HOWEVER ASPIRING EXPATRIATES CAN DO MUCH TO MINIMIZE THE RISKS AND ENSURE THAT AN OVERSEAS MOVE BECOMES A SUCCESSFUL CAREER MOVE CONSULTANTS SAY POSSIBLE STRATEGIES RANGE FROM ASKING UP FRONT FOR REPATRIATION COUNSELING LATER TO CULTIVATING A MULTITUDE OF MENTORS BACK HOME BEFORE PULLING UP STAKES YOU SHOULD MAKE SURE THAT YOUR FOREIGN ASSIGNMENT IS IN A HEALTHY AND STRATEGICALLY IMPORTANT UNIT THAT NEEDS YOUR SPECIFIC KNOWLEDGE CONSULTANTS ADVISE THEY ALSO SUGGEST SEEKING AS CLEAR A COMMITMENT AS POSSIBLE PREFERABLY IN WRITING THAT YOUR COMPANY WILL RETURN YOU TO AN EQUAL OR BETTER US JOB AFTER SUCCESSFUL COMPLETION OF THE STINT OVERSEAS SOME BIG COMPANIES INCLUDING HONEYWELL AND MINNESOTA MINING & MANUFACTURING ALREADY GIVE THESE SPECIFIC WRITTEN PROMISES IDEALLY CAREER STRATEGISTS SAY AN ASSIGNMENT LETTER SHOULD COMMIT YOUR EMPLOYER TO USE YOUR INTERNATIONAL EXPERTISE IN THE RETURN JOB AND PROVIDE A GENEROUS SEVERANCE PACKAGE IF YOUR REPATRIATION DOESN'T WORK OUT OF COURSE A WRITTEN AGREEMENT DOESN'T OFFER COMPLETE SECURITY EITHER IT IS JUST A PIECE OF PAPER SAYS MANFRED FIEDLER A HONEYWELL HUMANRESOURCES VICE PRESIDENT IT DOESN'T SAY HOW LONG THE RETURN JOB IS GUARANTEED A LAYOFF MAY LOOM IF YOU RETURN HOME AND FIND YOUR FORMER BUSINESS UNIT OR FORMER BOSS GONE MR FIEDLER SAYS TO AVOID CAREER DAMAGE IN AN ERA OF DOWNSIZING EXPATRIATES MUST FORGE STRONG LINKS WITH SEVERAL MENTORS IN IMPORTANT US POSITIONS CONSULTANTS SAY THESE SPONSORS SHOULD BE HIGHLEVEL PEOPLE WHO CAN KEEP YOU INFORMED ABOUT ATTRACTIVE REPATRIATION OPPORTUNITIES AS WELL AS THE LATEST OFFICE NEWS AT 3M EACH EMPLOYEE GOING ABROAD IS ASSIGNED A REENTRY SPONSOR THE SPONSOR A GROUP VICE PRESIDENT OR HIGHER STAYS ABREAST OF AN INDIVIDUAL'S PERFORMANCE APPRAISALS AND SOMETIMES APPROVES HIS OR HER PAY RAISES BUT WE CERTAINLY DON'T THINK THAT IS THE ONLY SOLUTION FOR MAINTAINING YOUR CAREER MOMENTUM SAYS JOHN MUILENBERG A 3M HUMANRESOURCES STAFF VICE PRESIDENT HE URGES EXPATRIATES TO DO EVERYTHING YOU CAN TO STAY CONNECTED BACK HOME BECAUSE THAT'S EVENTUALLY WHERE YOU WILL COME IT HELPS TO VISIT THE HOME OFFICE OFTEN AND TO SEND FREQUENT FAXES ELECTRONICMAIL MESSAGES AND EMPLOYEE NEWSLETTER ARTICLES ABOUT YOUR PROGRESS OVERSEAS LESS OBVIOUS STRATEGIES ALSO HELP EXPATRIATES STAY WELL CONNECTED EXPERTS NOTE PLAY GOLF WITH SENIOR EXECUTIVES WHEN THEY TRAVEL OVERSEAS THEY SAY YOU ALSO MIGHT WORK ON CROSSBOUNDARY TASK FORCES THAT WILL KEEP YOU IN THE MAINSTREAM ON ISSUES GOING ON AT HEADQUARTERS SAYS DEBORAH CORNWALL MANAGING VICE PRESIDENT OF KORN/FERRY ORGANIZATIONAL CONSULTING A BOSTON UNIT OF EXECUTIVE RECRUITERS KORN/FERRY INTERNATIONAL A GLOBAL TASK FORCE WILL GIVE YOU A REASON FOR STAYING IN CONTACT WITH CORPORATE HIGHERUPS SHE CONTINUES AN EXPATRIATE SALES EXECUTIVE FOR ONE CONSUMERPRODUCTS COMPANY SAW HIS CAREER UNRAVEL WHEN HE FAILED TO MAINTAIN A HIGH PROFILE IN THE US TRANSFERRED TO BRUSSELS HE DID AN EXCELLENT JOB SETTING UP THE COMPANY'S EUROPEAN COMMISSION OFFICE BUT HE LOST TOUCH WITH MOST AMERICAN COLLEAGUES AFTER FOUR YEARS HE CAME BACK TO A POSITION HE CONSIDERED MAKEWORK AND HATED HIS RESENTMENT AFFECTED HIS PERFORMANCE THE COMPANY FIRED HIM LESS THAN A YEAR LATER THAT SITUATION HIGHLIGHTS THE NEED FOR EXPATRIATES TO REQUEST REPATRIATION COUNSELING BEFORE THEY MOVE ABROAD BUSINESSES SHOULD COUNSEL NOT ONLY REPATRIATED EMPLOYEES AND THEIR FAMILIES BUT ALSO PEOPLE IN THE ORGANIZATION THEY WILL BE COMING BACK TO SAYS MR TOM THE 43YEAROLD FORMER HEWITT EXECUTIVE MR TOM SAYS HEWITT DIDN'T GIVE HIM REPATRIATION COUNSELING AFTER HE RAN ITS ASIAPACIFIC REGION FOR TWO YEARS HE SAYS HIS DIFFICULT READJUSTMENT AND POOR WORK ATTITUDE PREVENTED HIM FROM SUBSEQUENTLY GETTING AN EXPECTED PROMOTION TO HEAD HEWITT'S INTERNATIONAL PRACTICE HEWITT DECLINES TO COMMENT ULTIMATELY HOWEVER MR TOM'S ASIAN EXPERIENCE WASN'T WASTED HE NOW IS AN ACCOUNT MANAGER FOR COMPENSATION CONSULTANTS FOSTER HIGGINS IN SAN FRANCISCO HE SAYS FOSTER HIGGINS GAVE HIM A 15 RAISE AND PROMISED TO CONSIDER HIM FOR ANOTHER FOREIGN STINT MOST EXPATRIATES WHO DO WELL OVERSEAS AND STAY PLUGGED IN BACK HOME SHOULD FIND IT EASY TO JOB HOP LATER INTERNATIONAL SPECIALISTS SAY THAT'S WHY YOU MUST MAKE SURE THE EXPATRIATE ASSIGNMENT IS CONSISTENT WITH YOUR CAREER OBJECTIVES SAYS MICHAEL SCHELL PRESIDENT OF WINDHAM INTERNATIONAL A RELOCATION FIRM IN NEW YORK THERE IS NO ASSURANCE YOU WILL HAVE A JOB AT YOUR CURRENT COMPANY AFTERWARD 9308250098 930825 EN PHILLIPS UNIT WINS CONTRACT RESEDA CALIF EN PHILLIPS CO SAID ITS PHILLIPS GAMING INTERNATIONAL UNIT WON A CONTRACT WITH JEFFERSON BINGO INC TO PROVIDE ALL ELECTRONIC VIDEO BINGO DEVICES AT ITS TIMBERSTONE BINGO HALL IN HARVEY LA TERMS OF THE CONTRACT WERE NOT DISCLOSED 9308250097 930825 MARKETING & MEDIA EUROPEAN PAYPERVIEW VENTURE NEW YORK GRAFF PAYPERVIEW INC SAID IT SIGNED A LETTER OF INTENT WITH PHILIPS MEDIA A UNIT OF PHILIPS ELECTRONICS NV TO EXPLORE THE FEASIBILITY OF A PAYPERVIEW VENTURE IN EUROPE GRAFF IS AN INDEPENDENT PAYPERVIEW PROGRAMMER AND NETWORK OPERATOR 9308250096 930825 BUSINESS BRIEF CF INCOME PARTNERS TO SELL BIG PORTION OF REAL ESTATE ASSETS FOR 1825 MILLION LOS ANGELES CF INCOME PARTNERS INC IN A STEP THAT COULD LEAD TO DISSOLUTION OF THE TROUBLED PARTNERSHIP SAID IT AGREED TO SELL FOR 1825 MILLION THE BULK OF ITS SHOPPING CENTERS APARTMENT BUILDINGS AND OTHER REAL ESTATE ASSETS THE PROSPECTIVE BUYER IS AMERICAN CONTINENTAL PROPERTIES GROUP A CLOSELY HELD INSTITUTIONAL REAL ESTATE INVESTOR THE NEW YORK CONCERN AND ITS PARTNERS HAVE DEVELOPED 2 BILLION IN REAL ESTATE IN THE US AND EUROPE OVER THE PAST 15 YEARS CF INCOME SAID IT DIDN'T KNOW HOW PROCEEDS FROM THE CASH SALE WOULD BE SPLIT BETWEEN ITS UNITHOLDERS AND CREDITORS THE PARTNERSHIP HAS DEBT OF MORE THAN 200 MILLION INCLUDING 160 MILLION OWED TO CALIFORNIA FEDERAL BANK THE BIG LOS ANGELES THRIFT THAT IS THE PARENT OF THE PARTNERSHIP'S GENERAL PARTNER I WOULD LIKE TO BE ABLE TO ANNOUNCE HOW MUCH PER UNIT THIS TRANSACTION IS WORTH TO OUR UNITHOLDERS HOWEVER DETERMINING THIS VALUE WILL DEPEND UPON SEVERAL UNRESOLVED FACTORS INCLUDING TRANSACTION COSTS LAWSUIT SETTLEMENT COSTS AND THE OUTCOME OF NEGOTIATIONS WITH CALIFORNIA FEDERAL BANK SAID DENNIS A SONDKER PRESIDENT OF THE GENERAL PARTNER CF MANAGEMENT CORP MR SONDKER SAID HE IS OPTIMISTIC THAT THE PARTNERSHIP WILL BE ABLE TO PAY A LIQUIDATING DISTRIBUTION AND PROVIDE TAX BENEFITS TO UNITHOLDERS NEGOTIATIONS ARE UNDER WAY WITH CALIFORNIA FEDERAL AND THE PARTNERSHIP'S OTHER MORTGAGE LENDERS THAT COULD REDUCE THE PARTNERSHIP'S TOTAL DEBT A SPOKESWOMAN SAID CF INCOME PARTNERS IS A CASUALTY OF THE REAL ESTATE DOWNTURN THAT HIT CALIFORNIA AND OTHER STATES IN THE LATE 1980S FORMED IN 1986 THE PARTNERSHIP WENT ON A THREEYEAR ACQUISITION SPREE PURCHASING SHOPPING CENTERS OFFICE BUILDINGS AND APARTMENT PROJECTS AT PEAK PRICES THE PROPERTIES' VALUES HAVE ERODED SUBSTANTIALLY SINCE THEN THE PARTNERSHIP ALSO IS FACING LAWSUITS BY UNITHOLDERS WHO HAVE CHARGED AMONG OTHER THINGS THAT THE PARTNERSHIP WAS FORCED TO PURCHASE PROPERTIES AT ABOVEMARKET PRICES FROM A SUBSIDIARY OF CALIFORNIA FEDERAL SAVINGS SHORTLY AFTER THE TRANSACTION CLOSED IN LATE 1989 THE VALUE OF THE TRANSFERRED PROPERTIES BEGAN TO FALL THE PARTNERSHIP SPOKESWOMAN SAID THE PARTNERSHIP HAS DENIED ANY WRONGDOING THE PARTNERSHIP ANNOUNCED SOMETIME AGO THAT IT HAD RETAINED A FINANCIAL ADVISER TO EVALUATE VARIOUS OPTIONS INCLUDING A RESTRUCTURING OR POSSIBLE SALE OF THE PARTNERSHIP'S ASSETS COMPLETION OF THE SALE TO AMERICAN CONTINENTAL PROPERTIES IS SUBJECT TO A NUMBER OF CONDITIONS INCLUDING SETTLEMENT OF ALL LITIGATION THE PARTNERSHIP SAID EVERYONE IS HOPING THAT EVERYTHING CAN BE WRAPPED UP BY THE END OF THE YEAR THE SPOKESWOMAN SAID 9308250095 930825 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 303 30 TO 44 DAYS 310 45 TO 89 DAYS 311 90 TO 149 DAYS 321 150 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 268 THREE MONTHS 283 SIX MONTHS 298 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 307 ONE MONTH 313 THREE MONTHS 328 SIX MONTHS BANKERS ACCEPTANCES 302 30 DAYS 303 60 DAYS 304 90 DAYS 305 120 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 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 5/8 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 667 60 DAYS 676 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 666 60 DAYS 676 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5 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 9308250094 930825 TUESDAY'S MARKETS STOCKS SURGE TO RECORD BONDS CLIMB HEAVY MACHINERY AND AUTO ISSUES FUEL RALLY ON STRONG GAINS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL A POWERFUL RALLY IN ECONOMICALLY SENSITIVE ISSUES SENT STOCK PRICES BOUNDING TO RECORD HIGHS BOND PRICES CLIMBED AGAIN SENDING LONGTERM INTEREST RATES TO 619 THE LOWEST LEVEL IN 16 YEARS THE DOLLAR WAS MIXED STOCK PRICES WERE LED HIGHER BY STRONG GAINS IN HEAVY MACHINERY AND AUTO ISSUES HEAVY MACHINERY JUMPED AFTER A STRONG EARNINGS REPORT BY DEERE WHICH SOARED 5 1/4 TO 74 AND IN TURN DROVE UP CATERPILLAR 1 3/4 TO 82 3/8 AUTO STOCKS SHOT HIGHER AFTER MIDAUUST SALES SHOWED SURPRISING STRENGTH GENERAL MOTORS LEAPED 1 5/8 TO 46 3/4 FORD GAINED 1 5/8 TO 51 3/4 AND CHRYSLER ADDED 7/8 TO CLOSE AT 42 1/4 THE STOCK MARKET IS RESPONDING TO SIGNS THAT THE ECONOMY IS STRONGER THAN MANY PEOPLE THINK SAID PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES WHEN HELPWANTED ADS BEGIN TO IMPROVE AND BORROWING PICKS UP BOTH OF WHICH ARE OCCURRING THOSE ARE SIGNS YOU'RE IN AN ECONOMY THAT'S EXPANDING MR CANELO SAID AND IT'S GOING TO DO EVEN BETTER IN THE SECOND HALF SOME ANALYSTS ALSO POINT TO THE RECENT RALLY IN THE DOW JONES TRANSPORTATION AVERAGE AS A SIGN OF THE MARKET'S STRONG MOMENTUM THE TRANSPORTS WHICH HAVE SURGED 103 SINCE JULY 12 ROSE 1816 TO 164971 YESTERDAY THAT'S STILL SOME DISTANCE FROM THE RECORD 168308 REACHED IN APRIL BUT IF THE TRANSPORTS CONTINUE CLIMBING TO A RECORD AMID FURTHER HIGHS ON THE INDUSTRIAL AVERAGE THAT WOULD BE A VERY POSITIVE SIGN TO MANY TECHNICAL ANA LYSTS THAT WOULD HELP SHOOT THE MARKET HIGHER MR CANELO SAID THE STOCK MARKET ALSO IS PLAYING CATCHUP WITH THE BOND MARKET HE ADDED HE SAID LONGTERM BOND PRICES HAVE FALLEN MUCH FURTHER THAN MANY STOCK MARKET INVESTORS EXPECTED IF THE DOW INDUSTRIALS WERE TO FULLY CATCH UP WITH BONDS IT WOULD TRADE IN THE 3750 TO 3775 RANGE MR CANELO SAID BOND PRICES ROSE ACROSS THE BOARD WITH SHORTER MATURITIES OUTPACING THE LONG BOND THE TREASURY ATTRACTED STRONG INTER EST AT ITS AUCTION OF 16 BILLION IN TWOYEAR NOTES WHICH HELPED BOOST THE SHORT END OF THE MARKET THE BESTPERFORMING ISSUE WAS THE TREASURY'S SEVENYEAR BOND WHICH GAINED MORE THAN HALF A POINT OR MORE THAN 5 FOR EACH 1000 FACE AMOUNT TO YIELD 513 THOUGH SHORTERTERM ISSUES ROSE MORE THAN LONGTERM BONDS LONGTERM INTEREST RATES CONTINUED SINKING WITH THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR ISSUE SLIPPING TO 619 BRIAN KEYSER AN ECONOMIST AT NATIONSBANK SAID LONGTERM RATES COULD RISE A LITTLE DURING THE NEXT FEW MONTHS AS THE ECONOMY SHOWS A BIT MORE STRENGTH IN THE THIRD QUARTER BUT HE EXPECTS RATES TO THEN FALL FURTHER THERE'S GOING TO BE A POINT WHERE PEOPLE TAKE SOME PROFITS BUT THE ENVIRONMENT OF LOW INFLATION AND SLOW GROWTH AS WELL AS CONTINUED RESTRAINT ON THE PART OF THE FEDERAL RESERVE ARE ALL VERY HELPFUL FOR THE LONG END OF THE MARKET MR KEYSER SAID EVERYTHING SEEMS TO BE WORKING IN FAVOR OF A BULLISH BOND MARKET HE SAID HE EXPECTS THE YIELD ON THE 30YEAR BOND TO FALL BELOW 6 WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 021 TO 11144 IN MAJOR MARKET ACTION STOCK PRICES RALLIED VOLUME TOTALED 2631 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1301 ISSUES ROSE AND 698 FELL BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED NEARLY POINT OR NEARLY 375 FOR EACH 1000 FACE AMOUNT THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16790 MARKS AND 10375 YEN COMPARED WITH 16835 MARKS AND 10305 YEN MONDAY 9308250093 930825 ECONOMY TRAVELERS IN TALKS TO SELL REAL ESTATE TO INVESTOR GROUPS LED BY ZELL SOROS BY MITCHELL PACELLE AND GREG STEINMETZ STAFF REPORTERS OF THE WALL STREET JOURNAL TRAVELERS CORP IS NEGOTIATING TO SELL AS MUCH AS 750 MILLION WORTH OF FORECLOSED COMMERCIAL REAL ESTATE TO TWO INVESTOR GROUPS LED BY CHICAGO INVESTOR SAM ZELL AND NEW YORK FINANCIER GEORGE SOROS IF THE NEGOTIATIONS ARE SUCCESSFUL IT WOULD BE THE FIRST MAJOR PROPERTY SALES BY THE HARTFORD CONN INSURER WHICH WAS ONE OF THE INSURERS HARDEST HIT BY THE COLLAPSE IN REALESTATE VALUES IN FEBRUARY TRAVELERS ANNOUNCED IT WOULD ATTEMPT TO SELL 2 BILLION OF BUILDINGS IT HAS TAKEN BACK FROM BORROWERS A PURCHASE BY MR SOROS'S QUANTUM REALTY FUND WOULD BE ITS FIRST MAJOR INVESTMENT MR SOROS SET UP THE 525 MILLION FUND EARLIER THIS YEAR TO INVEST IN REAL ESTATE WITH PAUL REICHMANN A ONETIME CONTROLLING SHAREHOLDER OF THE OLYMPIA & YORK DEVELOPMENTS LTD PROPERTY EMPIRE AS ITS MANAGER REPRESENTATIVES OF TRAVELERS MR SOROS AND MR ZELL DECLINED TO COMMENT THEIR NEGOTIATIONS WERE CONFIRMED BY SEVERAL PEOPLE FAMILIAR WITH THEM A SALE NOW IS NOT LIKELY TO RESULT IN A MAJOR CHARGE AGAINST TRAVELERS'S EARNINGS BECAUSE IT HAD ALREADY ADDED 735 MILLION TO ITS REALESTATE RESERVES WHEN IT MADE ITS ANNOUNCEMENT IN FEBRUARY THE CHARGE WHICH AMOUNTED TO A 55 WRITEDOWN FROM THE ORIGINAL VALUE OF THE PROPERTIES WAS INTENDED TO BRING THE BOOK VALUES OF THE PROPERTIES INTO LINE WITH THEIR LIQUIDATION VALUE IT ALSO SUGGESTED THE INVOLVEMENT OF PRIMERICA CORP CHAIRMAN SANFORD WEILL WHO DOESN'T LIKE TO DELAY THE RECOGNITION OF LOSSES PRIMERICA IS TRAVELERS'S LARGEST SHAREHOLDER SO FAR TRAVELERS HAS ONLY SOLD ABOUT 100 MILLION OF THE 2 BILLION PORTFOLIO EARLIER THIS YEAR TRAVELERS BACKED AWAY FROM A PLAN TO POOL ITS BAD REAL ESTATE IN A SOCALLED BAD BANK THEN SPIN IT OFF FOR SALE TO INVESTORS MANAGEMENT SCRAPPED THE PLAN WHICH WAS PUT TOGETHER BY KIDDER PEABODY & CO BECAUSE IT WOULD HAVE REQUIRED TAKING FURTHER LOSSES ON ITS PORTFOLIO OF FORECLOSED PROPERTY MR ZELL HAS BEEN BUYING DISTRESSED PROPERTIES WITH ABOUT 860 MILLION FROM TWO INVESTMENT FUNDS RAISED WITH MERRILL LYNCH & CO BOTH FUNDS ARE SOON EXPECTED TO BE FULLY INVESTED AND MERRILL IS CURRENTLY ATTEMPTING TO RAISE ANOTHER 500 MILLION FOR A THIRD FUND TRAVELERS'S CURRENT EFFORT IS SIMILAR TO THAT OF PRUDENTIAL INSURANCE CO OF AMERICA WHICH IS NOW PREPARING TO SELL IN BULK UP TO 700 MILLION WORTH OF FORECLOSED PROPERTY IT TOO HAD PREVIOUSLY EXPRESSED A PREFERENCE FOR INDIVIDUAL SALES THE CHANGE IN STRATEGY REFLECTS A PERCEPTION THAT DUE TO THE INCREASING NUMBER OF POTENTIAL BUYERS OF DISTRESSED REAL ESTATE PORTFOLIO PRICES ARE INCREASING FROM THE 50 DISCOUNTS TYPICAL OF EARLY BANK AND RESOLUTION TRUST CORP DEALS 9308250092 930825 DIVIDEND NEWS CONVERSION INDUSTRIES INC CONVERSION INDUSTRIES INC PASADENA CALIF SAID IT PLANS TO PAY A STOCK DIVIDEND TO ITS SHAREHOLDERS BY DISTRIBUTING ONE SHARE OF JOSEPH LAND GROUP INC A CHARLESTON SC MATERIALSTRANSPORT COMPANY FOR EVERY FIVE SHARES OF CONVERSION HELD CONVERSION WHICH IS INVOLVED IN ALTERNATIVEENERGY PROJECTS OIL AND GAS DEVELOPMENT AND FINANCIAL SERVICES OWNS A 40 STAKE IN THE CHARLESTON COMPANY JOSEPH LAND GROUP EXPECTS TO FILE A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION WITHIN THE NEXT 60 DAYS AND THE RECORD DATE FOR THE DISTRIBUTION WILL BE ABOUT 10 DAYS AFTER THE EFFECTIVE DATE OF THE REGISTRATION STATEMENT CONVERSION SAID 9308250091 930825 BUSINESS BRIEF NCI BUILDING SYSTEMS INC COMPANY HAS 80 INCREASE IN THIRDQUARTER EARNINGS NCI BUILDING SYSTEMS INC BENEFITING FROM AN IMPROVED BUILDING CLIMATE IN MUCH OF THE COUNTRY SAID EARNINGS FOR ITS THIRD QUARTER ROSE 80 ON HIGHER SALES THE HOUSTON MAKER OF PREENGINEERED BUILDINGS SAID NET INCOME FOR THE QUARTER ENDED JULY 31 INCREASED TO 18 MILLION OR 40 CENTS A SHARE FROM 1 MILLION OR 24 CENTS A SHARE A YEAR EARLIER SALES GREW 79 TO 36 MILLION FROM 201 MILLION CA RUNDELL CHAIRMAN SAID SALES BENEFITED FROM 15 TO 20 HIGHER VOLUME IN THE METAL BUILDING INDUSTRY AN INCREASE IN MARKET SHARE AND THE ACQUISITION LAST YEAR OF A&S BUILDING SYSTEMS INC ALSO A PREENGINEERED BUILDING MANUFACTURER HE SAID THE BUILDING CLIMATE HAD IMPROVED IN THE MIDWEST SOUTHEAST AND SOUTHWEST 9308250090 930825 DESTEC GETS 20YEAR CONTRACT HOUSTON DESTEC ENERGY INC SAID IT HAS A 20YEAR CONTRACT WITH NEW JERSEY NATURAL GAS CO TO SUPPLY NATURAL GAS FOR A COGENERATION PROJECT IN NEW YORK THE AGREEMENT INVOLVES THE SUPPLY OF ABOUT FOUR BILLION CUBIC FEET OF NATURAL GAS ANNUALLY FOR A 57MEGAWATT GENERATING PLANT BEING DEVELOPED BY DESTEC AND PARADIGM POWER INC THE INDEPENDENT POWER SUBSIDIARY OF NEW JERSEY RESOURCES CORP WHICH ALSO OWNS NEW JERSEY NATURAL GAS THE POWER PLANT HARRIMAN NY WILL PROVIDE UP TO 57 MEGAWATTS OF ELECTRICAL POWER TO ORANGE & ROCKLAND UTILITIES INC OF PEARL RIVER NY 9308250089 930825 ASHA SIGNS LICENSE AGREEMENT SANTA BARBARA CALIF ASHA CORP HAS SIGNED A LICENSE AGREEMENT WITH NEW VENTURE GEAR INC FOR ITS GERODISC PRODUCT TO BE USED IN THE NEXT GENERATION OF FOURWHEELDRIVE TRANSFER CASES ASHA SAID THE AGREEMENT ALLOWS NEW VENTURE GEAR TO MANUFACTURE AND SELL THE DEVICE IN TRANSFER CASE PRODUCTS IN NORTH AMERICA AND EUROPE GERODISC PROVIDES FOURWHEEL TRACTION INSTEAD OF TWO OR THREE IN ALLWHEELDRIVE AND FOURWHEELDRIVE APPLICATIONS WHILE REDUCING COST WEIGHT AND MECHANICAL DRAG ASHA SAID NEW VENTURE GEAR IS A JOINTLY OWNED BY CHRYSLER CORP AND GENERAL MOTORS CORP 9308250088 930825 HOURLY WAGES RISE IN ITALY ROME AVERAGE HOURLY WAGES IN ITALY WERE UP 01 IN JULY FROM JUNE AND WERE UP 26 FROM A YEAR EARLIER THE STATE STATISTICS BUREAU ISTAT SAID THE JULY DIFFERENTIALS COMPARED WITH JUNE HOURLY WAGES THAT WERE UP 08 FROM THE PREVIOUS MONTH AND UP 35 FROM A YEAR EARLIER THE YEARONYEAR INCREASE IN WAGES IN JULY COMPARED WITH AN INFLATION RATE OF 44 FOR THE MONTH IN THE FIRST SIX MONTHS OF 1993 NONWORKING HOURS DUE TO STRIKES TOTALED 11118000 COMPARED WITH 4187000 A YEAR EARLIER 9308250085 930825 LETTERS TO THE EDITOR PROGRAMMED TO SELFDESTRUCT JUDE WANNISKI'S AUG 10 LETTER ON MY MULTIFACETED ROADMAP OUT OF THE BALKAN QUAGMIRE EDITORIAL PAGE JULY 12 STRESSES THE IMPORTANCE OF ECONOMIC MASSACRE IN THE FORMER YUGOSLAVIA IN THAT RESPECT HE DOESN'T REALLY DIFFER WITH ME ECONOMIC DISASTERS WERE AS ESSENTIAL IN THE DISINTEGRATION OF YUGOSLAVIA AS IN THE COLLAPSE OF COMMUNISM IN THE SOVIET UNION AND EASTCENTRAL EUROPE EVEN THE GENEROUS SPACE GIVEN MY ARTICLE BY THE EDITORS OF THE JOURNAL DIDN'T SUFFICE TO OUTLINE THE ECONOMIC FACETS OF THE QUAGMIRE HOWEVER MR WANNISKI WHO IS INTERESTED IN THE WAY THE WORLD WORKS IS LOOKING AT THE WRONG MAP IF HE THINKS THE YUGOSLAVIAN VARIANT OF REFORM SOCIALISM MIGHT HAVE WORKED AND NEEDED THE IMF TO RUIN IT LONG BEFORE THE IMF INTERVENTION IN 1986 THE BASIC IRRATIONALITIES OF YUGOSLAVIA'S FEDERALIZED WORKER SOCIALIST SELFMANAGEMENT WERPLAIN THE PARTY ITSELF THE LEAGUE OF COMMUNISTS OF YUGOSLAVIA REALLY OWNED THE ENTERPRISES THAT WERE NOMINALLY UNDER WORKERS' CONTROL AND MANAGEMENT IN YUGOSLAVIA BUT EVEN IF THE WORKERS HAD OWNED THEM THE SYSTEM WOULD HAVE LACKED ESSENTIAL COMPETITIVE INCENTIVES IT WOULD HAVE DISCOURAGED NEW ENTERPRISES THE MOVEMENT OF LABOR AND CAPITAL BETWEEN ENTERPRISES AND REGIONS AND LABOR DISCIPLINE HOWEVER IT WAS THE VARIOUS COMMUNIST LEAGUES OF THE REPUBLICS PROVINCES AND SUBREGIONS THAT OWNED THE ENTERPRISES AND WITHIN THE REPUBLICS AND PROVINCES THE POLITICIANS IN SOME 500 LOCAL SOCIOPOLITICAL COMMUNITIES CONTROLLED INVESTMENT DECISIONS IN LOCAL ENTERPRISES CONFLICTS AMONG THESE DECENTRALIZED LITTLE LEAGUES OF COMMUNISTS HAD TO BE RESOLVED IN THE BIG LEAGUE OF COMMUNISTS OF YUGOSLAVIA AND IRRATIONALITIES MULTIPLIED THE DICTATORSHIP DECIDED ON HOW TO INVEST APPOINTED MANAGERS AND CHOSE TECHNOLOGIES IN WAYS THAT SOLIDIFIED ITS RULE HUGE LOANS POURING INTO YUGOSLAVIA AFTER THE FIRST OIL SHOCK IN THE EARLY 1970S DRAINED THROUGH RAT HOLES WITH THE SECOND OIL SHOCK AT THE END OF THE 1970S LOANS SHRANK AND THE IRRATIONALITIES OF THE YUGOSLAV ECONOMY BECAME OBVIOUS TENTATIVE MOVES TOWARD MARKETS IN EASTCENTRAL EUROPE AND IN THE FORMER SOVIET UNION INTENSIFIED POPULAR DISSATISFACTIONS ESPECIALLY AMONG SERBS WHO WERE SUBJECT TO A PARTICULARLY RIGID RULE MILOSEVIC NEVER ADDRESSED THESE DISASTERS HIS PARANOID PANSERBIAN NATIONALISM WAS A WAY OF DISTRACTING ATTENTION FROM THEM THIS MAKES STILL MORE OBVIOUS THE FOLLY OF THE ATTEMPT BY THE US GOVERNMENT AND THE EUROPEAN COMMUNITY TO KEEP TOGETHER A SERBDOMINATED YUGOSLAVIA EVEN AS SUCH COMPONENT REPUBLICS AS SLOVENIA AND CROATIA WERE BENT ON MOVING TOWARD MORE AUTONOMY FREER MARKETS AND MORE TRANSACTIONS WITH THE WEST YUGOSLAVIA WAS PROGRAMMED TO SELFDESTRUCT WITHOUT ANY HELP FROM THE IMF 9308250084 930817 REVIEW & OUTLOOK EDITORIAL END CONGRESS'S GAG RULE WE PROMISED IN THIS SPACE RECENTLY TO PUBLISH THE NAMES OF ALL THE MEMBERS OF THE HOUSE OF REPRESENTATIVES WHO REFUSED TO SIGN REP JIM INHOFE'S PETITION TO REFORM THE SECRETIVE DISCHARGE PETITION PROCESS THAT LIST APPEARS BELOW AMERICANS OVERWHELMINGLY FAVOR TERM LIMITS A LINEITEM VETO AND A BALANCEDBUDGET AMENDMENT BUT GETTING THOSE ISSUES A HEARING ON THE HOUSE FLOOR IS NEARLY IMPOSSIBLE BECAUSE HOSTILE HOUSE LEADERS CAN BOTTLE THEM UP IN THE RULES COMMITTEE REP INHOFE IS RISKING THE LEADERSHIP'S WRATH BY BLOWING THE WHISTLE ON THE PROCESS THEY USE TO HOLD BILLS HOSTAGE THE ONLY WAY TO DISLODGE BILLS FROM COMMITTEE IS IF 218 MEMBERS A HOUSE MAJORITY SIGN A DISCHARGE PETITION BUT BECAUSE THE LIST IS STRICTLY SECRET THE SPEAKER CAN EASILY SQUASH SUCH PETITIONS BY PRESSURING MEMBERS TO DROP OFF ONLY 44 OF 490 DISCHARGE PETITIONS HAVE EVER SUCCEEDED CONGRESS'S SECRET LIST ALLOWS MEMBERS TO PRACTICE A FORM OF HYPOCRISY THEY CAN PUBLICLY SUPPORT POPULAR BILLS WHILE QUIETLY WITHHOLDING THEIR NAMES FROM THE DOCUMENT THAT WOULD HELP THEM BECOME LAW REP INHOFE SAYS IT'S TIME VOTERS LEARNED WHERE THEIR REPRESENTATIVES REALLY STAND HIS BILL TO MAKE THE SECRET LIST PUBLIC IS OF COURSE SHELVED IN COMMITTEE SO JUST BEFORE CONGRESS RECESSED HE ANNOUNCED THAT HE WOULD RELEASE TO US THE NAMES OF THE 223 MEMBERS WHO HAD NOT SIGNED A DISCHARGE PETITION FOR HIS BILL LISTED MEMBERS WERE INFORMED BY REP INHOFE THAT THEIR NAMES WOULD BE PUBLISHED AT ONE POINT THE LIST OF THOSE WHO HADN'T SIGNED HIS PETITION HAD ONLY 217 NAMES BUT WHEN MR INHOFE CAME WITHIN ONE SIGNATURE OF THE HOUSE MAJORITY HE NEEDED SIX MEMBERS SUDDENLY REMOVED THEIR NAMES FROM HIS PETITION THOSE MEMBERS WHO BACKED OUT APPEAR BELOW IN BOLD TWO OTHERS COSPONSORED MR INHOFE'S BILL BUT DIDN'T SIGN HIS PETITION REP MARTIN MEEHAN CALLS THIS AN OVERSIGHT AND HE WILL SIGN REP JAMES HAYES MAY SIGN BUT HE PREFERS TO BE ASKED RATHER THAN TOLD RULES COMMITTEE CHAIRMAN JOE MOAKLEY IS CLEARLY WORRIED LAST WEEK HE FAXED MEMBERS A LETTER SUGGESTING THAT THEY CALL COLLEAGUES ON THE INHOFE PETITION TO ASK THEM TO RECONSIDER THEIR SUPPORT A NUMBER OF GROUPS INCLUDING SOME TIED TO ROSS PEROT ARE NOW UP TO SPEED ON HOW ARCANE RULES DISTORT THE LEGISLATIVE PROCESS DON'T BE SURPRISED IF A FAIR NUMBER OF VOTERS NOW TRY TO CONVINCE THEIR MEMBERS THAT THE TIME HAS COME TO GIVE UP THEIR SECRET RITES ON YESTERDAY'S EDITORIAL PAGE THE LIST OF MEMBERS OF CONGRESS WHO REFUSED TO SIGN REP JIM INHOFE'S DISCHARGE PETITION END CONGRESS'S GAG RULE MISSTATED THE STATES TWO MEMBERS REPRESENT BLANCHE LAMBERT AND RAY THORNTON ARE FROM ARKANSAS SEE RELATED LETTER LETTERS TO THE EDITOR WHY MAKE IT EASIER FOR SPECIAL INTERESTS WSJ AUG 25 1993 9308170063 YY93 MM08 9308250082 930825 WHAT'S NEWS WORLDWIDE THE US IS PLANNING SANCTIONS AGAINST CHINA FOR ITS SALES OF MISSILE GEAR WASHINGTON IS EXPECTED TO IMPOSE TRADE SANCTIONS ON BEIJING FOR VIOLATING PLEDGES BY SELLING MISSILE TECHNOLOGY TO PAKISTAN US OFFICIALS SAID THE PENALTIES COULD BE ANNOUNCED AS EARLY AS THIS WEEK AFTER BEIJING HAS BEEN NOTIFIED THE SANCTIONS COULD AFFECT HUNDREDS OF MILLIONS OF DOLLARS IN BILATERAL HIGHTECHNOLOGY TRADE US OFFICIALS HAVE LONG SUSPECTED THAT CHINA HAS BEEN SHIPPING PAKISTAN COMPONENTS OF THE M11 BALLISTIC MISSILE WHICH CAN CARRY A 1000POUND WARHEAD UP TO 186 MILES SAUDI AND CHINESE OFFICIALS AGREED TO A JOINT INSPECTION OF A CHINESE SHIP THAT THE US SAYS IS CARRYING CHEMICAL ARMS MATERIALS BOUND FOR IRAN THE MARS OBSERVER SPACE PROBE FAILED TO CONTACT EARTH AS IT WAS PROGRAMMED TO DO AFTER ITS EXPECTED DROP INTO ORBIT AROUND MARS INCREASING CONCERN THAT NASA'S 1 BILLION UNMANNED MISSION COULD BE A TOTAL LOSS TWO US CARGO PLANES AIRDROPPED 13000 PACKAGED MEALS OVER THE BESIEGED BOSNIAN CITY OF MOSTAR LAST NIGHT US OFFICIALS SAID A UN FOOD CONVOY IS HOPING TO BE ALLOWED TODAY INTO THE CITY'S MUSLIM ENCLAVE WHERE 55000 PEOPLE ARE UNDER SIEGE BY CROATS THE PENTAGON ANNOUNCED THAT THE MISSION OF AN ELITE FORCE OF 400 ARMY SOLDIERS WILL BE TO IMPROVE THE OVERALL SITUATION IN SOMALIA'S CAPITAL DESPITE THEIR SPECIAL TRAINING THE US TROOPS WON'T BE USED TO SEIZE CLAN LEADER AIDID OFFICIALS SAID THE TROOPS WILL LEAVE FOR SOMALIA THIS WEEK A ROMAN CATHOLIC CARDINAL ARRIVED IN THE NORTHERN NICARAGUAN VILLAGE OF QUILALI FOR TALKS WITH RIGHTIST GUERRILLAS HOLDING 16 HOSTAGES IN MANAGUA FORMER PRESIDENT ORTEGA MET WITH LEFTIST GUNMEN HOLDING THE NATION'S VICE PRESIDENT AND 15 OTHERS BOTH SIDES HAVE RELEASED SOME HOSTAGES SINCE THE STANDOFF BEGAN THURSDAY A BLOOD TEST WAS FOUND TO BOOST THE CHANCES OF UNCOVERING PROSTATE CANCER AT AN EARLIER STAGE THAN WOULD BE THE CASE WITH A CONVENTIONAL PHYSICAL EXAM SEPARATELY A BLOOD TEST USED FOR TWO DECADES TO DETECT RECURRENCES OF COLON CANCER AFTER SURGERY ISN'T SAVING LIVES ISRAEL ANNOUNCED THAT ALL PALESTINIAN DEPORTEES WHO RETURN FROM EXILE IN LEBANON NEXT MONTH WILL BE DETAINED FOR QUESTIONING AND SOME WILL THEN BE FREED OTHERS WILL BE HELD FOR FURTHER INVESTIGATION A DEFENSE OFFICIAL SAID THE ISRAELIS LAST WEEK SAID THEY WOULD ALLOW 187 OF THE REMAINING 396 DEPORTEES TO RETURN SOMETIME IN MIDSEPTEMBER THE GOVERNMENT IDENTIFIED MORE THAN 900 COLLEGES AND TRADE SCHOOLS THAT COULD BE BARRED FROM PARTICIPATING IN FEDERAL STUDENT LOAN PROGRAMS BECAUSE THEIR STUDENTS TOO FREQUENTLY DEFAULT AMONG STATES ALASKA HAD THE WORST REPAYMENT RATE FIGHTING RAGED ACROSS ANGOLA AS LOYALIST AND REBEL FORCES REJECTED NEW PEACE INITIATIVES STATE RADIO SAID GOVERNMENT TROOPS WERE CLOSING IN ON THE UNITA REBELS' CENTRAL STRONGHOLD OF HUAMBO ABOUT 330 MILES EAST OF LUANDA THE UN SPECIAL ENVOY TO ANGOLA SAID AS MANY AS 1000 PEOPLE WERE DYING DAILY FROM VIOLENCE AND FAMINE TWO FORMER IRAQI AMBASSADORS DEFECTED TO BRITAIN IN WHAT OPPONENTS OF SADDAM HUSSEIN CALLED A MAJOR SETBACK FOR HIS GOVERNMENT AT A NEWS CONFERENCE IN LONDON THE TWO MEN CONDEMNED IRAQ'S REGIME OF TERROR AND MISERY THEY SAID THEY WOULD JOIN FORCES WITH IRAQI OPPOSITION GROUPS TO PRESS FOR CHANGE SOUTH AFRICA INTENDS TO SCRAP ITS WHITESONLY SYSTEM OF MILITARY CONSCRIPTION AND REPLACE IT WITH A VOLUNTARY ARMY DEFENSE MINISTER COETSEE SAID THE GOVERNMENT PLANS TO INTRODUCE LEGISLATION DURING THE NEXT SESSION OF PARLIAMENT THAT WOULD AMEND THE CONSCRIPTION SYSTEM HE SAID THE US AMBASSADOR TO MOSCOW URGED RUSSIA AND LITHUANIA TO RESUME TALKS ON THE WITHDRAWAL OF UP TO 2600 RUSSIAN TROOPS FROM THE BALTIC STATE IN WASHINGTON A SENIOR OFFICIAL SAID THAT UNDER US LAW RUSSIA COULD LOSE 700 MILLION IN TECHNICAL AID IF ITS FORCES STAY IN LITHUANIA AFTER OCT 6 A NORTH KOREAN DEFECTOR SAID MILITARY OFFICERS HAD TOLD HIM THAT HUNDREDS OF PEOPLE DIED IN A NUCLEAR ACCIDENT IN YONGBYON WHILE OFFICIALS WERE TRYING TO HIDE A REACTOR FROM INSPECTORS IT WASN'T CLEAR WHEN THE ALLEGED ACCIDENT OCCURRED THE DEFECTOR DESCRIBED FOOD SHORTAGES AND GROWING DISSENT 9308250081 930825 TECHNOLOGY COMPUTEREASY PLANS ACQUISITION TEMPE ARIZ COMPUTEREASY INTERNATIONAL INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE EVOLUTION COMPUTING FOR COMMON STOCK AND CASH TERMS WERE NOT DISCLOSED EVOLUTION COMPUTING DEVELOPS COMPUTERAIDED DESIGN AND GRAPHICS SYSTEMS SOFTWARE COMPUTEREASY PUBLISHES AND MARKETS EDUCATIONAL AND ENTERTAINMENT COMPUTER SOFTWARE PRODUCTS 9308250080 930825 TECHNOLOGY & HEALTH LOS ALAMOS LAB SEEKS TO SPEED TECH TRANSFERS BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL SEEKING TO STEP UP SLUGGISH TECHNOLOGY TRANSFER EFFORTS LOS ALAMOS NATIONAL LABORATORY HAS HIRED MICROELECTRONICS & COMPUTER TECHNOLOGY CORP TO HELP IT CREATE STARTUP FIRMS THE AGREEMENT WHICH WILL BE ANNOUNCED TODAY WILL OFFER CORPORATE MEMBERS OF THE AUSTIN TEXASBASED CONSORTIUM PREFERENCE FOR TAXPAYERFUNDED TECHNOLOGY FROM THE NUCLEAR WEAPONS LABORATORY FOR MCC FOUNDED AS A RESEARCH LABORATORY FOR ITS MEMBER COMPANIES THE ARRANGEMENT EXTENDS ITS EFFORTS TO SERVE AS AN INCUBATOR FOR TECHNOLOGY STARTUPS FOR LOS ALAMOS THE PACT WILL PROVIDE A VEHICLE FOR DRAWING BOTH VENTURE CAPITAL AND BUSINESS ACUMEN TO THE FOURYEAR POSTCOLD WAR EFFORT TO TRANSFER FORMERLY CLASSIFIED KNOWHOW TO THE MARKETPLACE WE'RE LOOKING FOR WAYS TO ACCELERATE SAID MIKE STEVENSON LOS ALAMOS'S ASSOCIATE DIRECTOR FOR ENERGY AND ENVIRONMENT WHO OVERSEES TECHNOLOGY TRANSFERS TECHNOLOGY TRANSFER EXPERTS SAID THE MCC CONTRACT COULD PROVIDE A NEW MODEL FOR THE FEDERAL GOVERNMENT THE LACK OF CAPITAL FOR STARTUPS PARTICULARLY IN AREAS SUCH AS NEW MEXICO HAS GROWN INTO A MAJOR ROADBLOCK TO TECHNOLOGY TRANSFER ALREADY A FEW SMALLER GOVERNMENT LABORATORIES HAVE COME UP WITH LOCAL VENTURE CAPITAL EFFORTS THEY SAY AND AS PART OF ITS CONTRACT TO OPERATE SANDIA NATIONAL LABORATORY ONE OF THE DEPARTMENT OF ENERGY'S THREE BIG NATIONAL WEAPONS LABS MARTIN MARIETTA CORP IS REQUIRED TO ESTABLISH A VENTURE CAPITAL FUND MCC SHIFTED ITS OWN TECHNOLOGYTRANSFER STRATEGY LAST YEAR BY CREATING MCC VENTURES INC A FORPROFIT VENTURE CAPITAL COMPANY AFTER CONCLUDING IT WAS MORE EFFICIENT TO OFFER PRODUCTS TO MAJOR COMPANIES RATHER THAN RAW TECHNOLOGIES MCC VENTURES WHICH WILL HANDLE THE LOS ALAMOS CONTRACT HAS SPUN OFF FOUR DIFFERENT FIRMS SO FAR MCC OFFICIALS SAID THEY WILL FIRST ASSESS HURDLES AND RECOMMEND SOLUTIONS TO PROBLEMS THAT HAVE PLAGUED THE LAB'S TECHNOLOGYTRANSFER EFFORTS INCLUDING THICK BUREAUCRACY AND TEDIOUS PATENT AND LICENSING NEGOTIATIONS AFTER THAT INITIAL PHASE WHICH IS EXPECTED TO LAST SIX MONTHS AND COST 1 MILLION MCC SAID IT WILL INVESTIGATE WHICH LOS ALAMOS TECHNOLOGIES HAVE COMMERCIAL APPLICATIONS FOCUSING ON ELECTRONICS SOFTWARE AND INFORMATION SYSTEMS AND ENVIRONMENTAL AND MANUFACTURING TECHNOLOGY THEN MCC WILL TRY TO ATTRACT VENTURE CAPITAL TO POSSIBLE STARTUPS FROM THE LAB LOCATED IN LOS ALAMOS NM AS WITH OTHER MCC VENTURES PROJECTS CONSORTIUM MEMBERS WILL RECEIVE FIRST CRACK AT PRODUCTS DEVELOPED BY SPINOFFS MCC WAS ESTABLISHED A DECADE AGO TO FOSTER COMPUTING TECHNOLOGIES AND HELP THE NATION COMPETE AGAINST JAPAN 9308250079 930825 INTERNATIONAL BRIEF TDK CORP FISCAL FIRSTQUARTER PROFIT PLUNGED YEN'S RISE CITED TDK CORP THE JAPANESE MAKER OF MAGNETIC TAPES SAID ITS CONSOLIDATED PRETAX PROFIT PLUNGED 42 IN THE FIRST QUARTER ENDED JUNE 30 DUE TO THE YEN'S SHARP APPRECIATION AND WEAK DEMAND NET INCOME FELL 36 TO 339 BILLION YEN 328 MILLION FROM 529 BILLION YEN THE COMPANY SAID THE DOLLAR AVERAGED 109 YEN IN THE LATEST QUARTER SHARPLY LOWER FROM THE 129 YEN LEVEL THAT PREVAILED DURING THE YEAREARLIER PERIOD THE YEN'S RISE CUT INTO THE VALUE OF TDK'S OVERSEAS SALES WHEN TRANSLATED BACK IN YEN TERMS THE COMPANY SAID ITS OVERSEAS SALES PLUNGED 14 TO 6053 BILLION YEN OR 502 OF TOTAL SALES FROM 7032 BILLION YEN THE YEAR BEFORE DESPITE WEAK DOMESTIC ECONOMIC CONDITIONS DOMESTIC SALES DROPPED ONLY 48 TO 6010 BILLION YEN FROM 6318 BILLION YEN THE YEAR BEFORE 9308250078 930825 INTERNATIONAL BRIEF WOLTERSKLUWER NV FIRSTHALF NET GREW 26 ACQUISITIONS SALES ARE CITED DUTCH SPECIALTY PUBLISHING GROUP WOLTERSKLUWER NV SAID NET INCOME ROSE 26 IN THE FIRST HALF BUOYED BY RECENT ACQUISITIONS AND AN 8 IMPROVEMENT IN SALES WOLTERS SAID EARNINGS ROSE TO 138 MILLION GUILDERS 728 MILLION IN THE HALF FROM A YEAREARLIER 109 MILLION GUILDERS THE GROWTH CAME DESPITE AFTERTAX CHARGES OF FOUR MILLION GUILDERS IN THE YEAREARLIER PERIOD THE COMPANY HAD EIGHT MILLION GUILDERS OF EXTRAORDINARY GAINS FIRSTHALF SALES ADVANCED TO 125 BILLION GUILDERS FROM A YEAREARLIER 116 BILLION GUILDERS ON A FULLY DILUTED BASIS PERSHARE EARNINGS ROSE 20 TO 212 GUILDERS 112 FROM 177 GUILDERS WOLTERS ALSO FORECAST THAT PROFIT FOR THE FULL YEAR WOULD IMPROVE ABOUT 20 FOR 1992 THE COMPANY REPORTED NET INCOME OF 258 MILLION GUILDERS ANALYSTS SAID FIRSTHALF EARNINGS WERE BETTER THAN EXPECTED 9308250077 930825 INTERNATIONAL MAZDA PLANS MORE CUTS IRVINE CALIF MAZDA MOTOR CORP SAID IT IS SLASHING ITS US SALES AND MARKETING WORK FORCE BY 10 AND ELIMINATED THE POSITION OF VICE PRESIDENT OVERSEEING THOSE OPERATIONS THE 175 JOBS THAT WILL BE CUT ARE IN ADDITION TO THE MORE THAN 200 WORKERS LAID OFF IN FEBRUARY THE COMBINED CUTBACKS REDUCE MAZDA'S SALES AND MARKETING FORCE TO ROUGHLY 900 WORKERS FROM A HIGH OF 1300 A YEAR AGO A MAZDA SPOKESMAN SAID THE COMPANY ISN'T ANTICIPATING ANOTHER ROUND OF CUTS MAZDA SAID THE STRONG YEN FORCED THE AUTO MAKER TO PARE COSTS OF OPERATIONS AS MUCH AS POSSIBLE TO KEEP PRICES AS COMPETITIVE AS POSSIBLE THE SPOKESMAN SAID MAZDA ALONG WITH OTHER JAPANESE AUTO MAKERS IS EXPECTED TO RAISE PRICES BY AS MUCH AS 10 NEXT MONTH 9308250076 930825 LETTERS TO THE EDITOR MORE TAXES WILL POISON THE ECONOMY ON THE SURFACE YOUR JULY 20 ARTICLE FOES OF CLINTON'S TAXBOOST PROPOSALS MISLEAD PUBLIC AND FIRMS ON THE SMALLBUSINESS ASPECTS APPEARS TO BE AN ATTACK ON THE EFFORTS OF CITIZENS FOR A SOUND ECONOMY CSE TO FOCUS ATTENTION ON THE IMPACT OF THE CLINTON PLAN ON THE ECONOMY'S MOST PRODUCTIVE JOBCREATING SECTOR SMALL BUSINESS IN FACT THE CLINTON ADMINISTRATION AND ITS ALLIES ON CAPITOL HILL HAVE TAKEN TO WAVING THE ARTICLE IN THE AIR AS SOCALLED PROOF THAT THE PROPOSED TAX HIKES WILL NOT REALLY HARM SMALL BUSINESSES AND COST JOBS THROUGHOUT AMERICA BUT THE SAME ARTICLE THEY SO GLEEFULLY REFERENCE CONTRADICTS THEIR VERY POINT IN CONCLUDING OUR ANALYSIS OF THE CLINTON PLAN'S IMPACT ON SMALL BUSINESS YOU WRITE OF COURSE THE MOST PROSPEROUS BUSINESSES ARE LIKELY TO BE THE ONES THAT EMPLOY THE MOST PEOPLE RAISING THEIR TAXES AND THEREBY REDUCING THEIR CASH FLOW ISN'T LIKELY TO ENCOURAGE THEM TO HIRE NEW EMPLOYEES OR BUY MORE EQUIPMENT A POINT WELL MADE AND CSE'S POINT EXACTLY SINCE PROSPEROUS SMALL BUSINESSES ARE THE TRUE ENGINES OF ECONOMIC GROWTH AND JOB CREATION IN THE ECONOMY ACCORDING TO DUN & BRADSTREET 80 OF NEW JOBS IN 1993 WILL BE CREATED BY BUSINESSES WITH 100 OR FEWER EMPLOYEES RAISING COSTS FOR SUCH ENTERPRISES IS PROFOUNDLY COUNTERPRODUCTIVE EARLIER IN THE ARTICLE HOWEVER YOU SEEM TO HAVE FORGONE SUCH COMMON SENSE CONCLUSIONS AND CHOSEN INSTEAD TO MIMIC THE RHETORIC MANUFACTURED BY THE CLINTON WHITE HOUSE AS IF EXTRACTED FROM A WHITE HOUSE PRESS RELEASE YOU WRITE UNDER THE TAXRATE INCREASES THAT HAVE CLEARED BOTH HOUSES OF CONGRESS THEY A MAJORITY OF SMALL BUSINESSES WOULDN'T BE TOUCHED ONLY THE MOST PROSPEROUS SMALLBUSINESS OWNERS WOULD BE AFFECTED BUT BASED ON 1991 TAX RETURNS ENTERPRISES EARNING AT LEAST A QUARTER OF THE TOTAL INCOME OF SMALL BUSINESSES WILL BE SUBJECT TO THE HIGHER TAX RATES LOOKING AT CORPORATIONS WITH UNDER 1 MILLION IN INCOME THE PORTION JUMPS TO ALMOST HALF THIS POINT IS IMPORTANT BECAUSE IT IS THE AMOUNT OF INCOME AVAILABLE TO EXPAND NOT SIMPLY THE NUMBER OF ADDITIONAL BUSINESSES PAYING HIGHER TAXES THAT IS CRITICAL TO JOB CREATION THE DAMAGE INFLICTED ON SMALL BUSINESSES WOULD NOT COME ONLY IN THE FORM OF HIGHER PERSONAL INCOME TAX RATES THE SENATE VERSION OF THE CLINTON PLAN INCREASES THE TOP CAPITALGAINS TAX RATE FROM 28 TO 308 THIS TAX HIKE TRANSLATES INTO A TAX ON OPPORTUNITY AND JOB CREATION ADDITIONALLY THE CORPORATE TAX RATE WOULD INCREASE FROM 34 TO 35 DIRECTLY AFFECTING ALL SMALL BUSINESSES THAT ARE INCORPORATED AND AFFECTING MANY UNINCORPORATED SMALL BUSINESSES DEPENDENT ON CORPORATE SUPPLIERS FINALLY A HIGHER TRANSPORTATION FUELS TAX WILL INCREASE SMALL BUSINESS COSTS AS WELL AND TAX HIKES ON PAYROLL TAXES ARE ALSO IN THE MIX SMALLBUSINESS SURVEYS CONDUCTED BY CSE IN EIGHT STATES CLEARLY REFLECT THE ANXIETY AMONG SMALLBUSINESS OWNERS OVER THE IMPACT ALL OF THESE TAX INCREASES WILL HAVE ON THEIR BUSINESSES AND THEIR EMPLOYEES IN LOUISIANA AND NEVADA 66 OF SMALLBUSINESS OWNERS SURVEYED SAID THEY WOULD BE EITHER SOMEWHAT LIKELY OR VERY LIKELY TO HIRE FEWER NEW EMPLOYEES IF THE TAX BILL PASSES SURVEYS IN SIX OTHER STATES NETTED SIMILAR RESULTS THIS ANXIETY IS REAL AND SO IS THE DANGER THE CLINTON TAX PROPOSAL POSES FOR SMALL BUSINESSES AND OUR FRAGILE ECONOMY AS YOUR OWN EDITORIAL WRITERS CONCLUDED IN A CRITIQUE OF THE TREASURY DEPARTMENT'S ANALYSIS OF THE CLINTON TAX PLAN NO AMOUNT OF CLASS WARFARE RHETORIC FROM THE TREASURY CAN TURN THIS WITCH'S BREW OF TAXES AND MANDATES INTO ANYTHING BUT POISON FOR THE ECONOMY 9308250075 930825 TECHNOLOGY HEWLETTPACKARD ACQUISITION PALO ALTO CALIF HEWLETTPACKARD CO SAID IT HAS SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE EESOF INC A COMPUTERAIDED ENGINEERING SOFTWARE DEVELOPER BASED IN WESTLAKE VILLAGE CALIF TERMS WERE NOT DISCLOSED AND THE COMPANY SAID THE PROPOSED ACQUISITION IS SUBJECT TO GOVERNMENT APPROVAL THE COMPANY SAID EESOF WILL MERGE WITH HEWLETTPACKARD'S HIGH FREQUENCY DESIGN SOFTWARE OPERATION IT SAID CHARLES J ABRONSON EESOF'S PRESIDENT CHIEF EXECUTIVE AND COFOUNDER WILL LEAVE TO PURSUE OTHER INTERESTS BUT CONTINUE FOR A TIME AS A CONSULTANT WILLIAM H CHILDS EESOF EXECUTIVE VICE PRESIDENT AND A COFOUNDER IS EXPECTED TO REMAIN 9308250074 930825 LEISURE & ARTS ARCHITECTURE UNDER THE VOLCANO BY EVE M KAHN MOUNT ST HELENS WASH ALL ARCHITECTURE HERE IS DOOMED NO TRACE SURVIVES OF THE HANDSOME LODGES AND RICKETY VACATION CABINS THAT PERCHED ON THE MOUNTAIN'S SUMMIT BEFORE THE 1980 ERUPTION THE ONLY PROOF OF ANY PRE1980 HUMAN SETTLEMENT HERE IS A FEW RUSTED CABLES ONCE USED TO HAUL LOGS AND ONE RUSTED BRIDGE GIRDER POKING OUT FROM A HILLSIDE AMID FELLED TREES DRILLED INTO THAT POSITION BY 670MILEANHOUR VOLCANIC WINDS SO WHY BUILD ANYTHING MEMORABLE HERE AGAIN WE'VE ASKED OURSELVES THAT WE'VE ASKED OURSELVES ARE WE CRAZY' SAYS HARRY RODDA WHOSE PALO ALTOBASED ARCHITECTURE FIRM SPENCER ASSOCIATES JUST COMPLETED AN 11 MILLION VISITORS' CENTER AT THE HEART OF WHAT SCIENTISTS CALL THE BLAST ZONE COMPRISED OF A SCORCH ZONE A BLOWDOWN ZONE AND THE WORSTHIT AREA THE PYROCLASTIC ZONE YOU CAN'T TAKE YOURSELF TOO SERIOUSLY UP HERE MR RODDA ADDS BECAUSE SIX MILES FROM THE CENTER LOOMS THE SOURCE OF ITS INEVITABLE DESTRUCTION A TWOMILEWIDE CRATER WHERE A HEAVING STEAMING REDVEINED DOME OF LAVA HAS RISEN FROM A MINOR LUMP TO A THOUSANDFOOT TERROR SINCE 1980 STILL IN SPITE OF MR RODDA'S HEALTHY SENSE OF PERSPECTIVE THE CENTER SHOULD BE WIDELY MOURNED AFTER IT IS BLOWN TO DUST IT SETS A NEW STANDARD FOR TOURISTIC ARCHITECTURE AT THE EDGE OF HUMBLING NATURAL ATTRACTIONS UNPRETENTIOUS AND UNIVERSAL RATHER THAN AGGRESSIVELY REGIONAL ITS MOST BLATANT REFERENCE TO VOLCANISM IS ITS PARKING LOT WHICH ALSO RANKS AMONG THE WORLD'S MOST ENVIRONMENTALLY GENTLE THE LANDSCAPE ARCHITECTS THE SEATTLE BRANCH OF A LARGE FIRM CALLED EDAW TELL ME THAT THE FOLLOWING INSTRUCTIONS HAD NEVER BEFORE APPEARED ON ANY PARKINGLOT BLUEPRINT SET TIMBERS TO ORIGINAL DEPTH OF ASHFALL AND DO NOT DAMAGE ABOVEGROUND PORTION OF STUMP THAT MEANT THAT PARKINGLOT CONTRACTORS TREATED ALL GHOSTS OF TREES LIKE FINE ANTIQUES HAULING THEM IN CANVAS SLINGS TO SAFETY AT THE SITE'S EDGES DURING CONSTRUCTION AND REPLACING THEM AFTERWARD AS THEY FELL POINTING AWAY FROM THE LAVA DOME ONLY A FEW FIBERGLASS LOG REPLICAS WERE INCLUDED IN THE GROUP TO ADD VISUAL OOMPH IN BARE PATCHES ALONG FOOTPATHS CHILDREN GAPE AT SO MUCH ROTTING TIMBER STREWN ON ASHLADEN SOIL BEDS SO NEATLY EDGED WITH CONCRETE AND ASPHALT AS IF ENOUGH PAVEMENT TO SUPPORT 350 CARS AND A FEW DOZEN BUSES AND RVS SIMPLY WELLED UP FROM THE EARTH THE POSTVOLCANIC EFFECT CONTINUES ON THE BUILDING ASHLADEN SOIL BERMS DISGUISE 15FOOTLONG SECTIONS OF THE CENTER'S PARKINGLOT WALL AND GENUINE LOGS JUT OUT OF THE BERMS LIKE DECREPIT CANNONS BUT CONCRETE IS EXPOSED ALONG MOST OF THIS FACADE WITH WALLS FLARED OUT TO SEEM DECEPTIVELY STURDY IN TRUTH MR RODDA EXPLAINS THE COPPER ROOF IS BUILT TO CARRY TONS OF ASH AND SNOW YET NO PART OF THE BUILDING COULD WITHSTAND THE KIND OF BLAST THAT RIPPED APART THIS SIDE OF THE MOUNTAIN IN 1980 THE VOLCANO FORTUNATELY IS EXPECTED TO DIRECT ITS NEXT CHARGE STRAIGHT UP AND ANYWAY IT HAS SCARCELY RUMBLED SINCE OH 1990 YOU WON'T LEARN ABOUT THE CENTER'S VULNERABILITY ON ANY INFORMATION PANEL INSIDE OF COURSE BUT YOU WILL FIND GOOD REASON TO SUSPECT IT THE BUILDING POINTS AWAY FROM THE PARKING LOT IN THREE GLASSWALLED WINGS ENDING IN FOURSIDED BAYS ALL OVERLOOKING LAND THAT REQUIRED NEW MAPS IN 1980 THE LEFT WING CONTAINS A SNACK BAR AND LOOKS OUT ONTO ONE OF TWO NEW LAKES FORMED WHEN VOLCANIC DEBRIS DAMMED A CREEK EXHIBITS OCCUPY THE RIGHT WING WHICH POINTS AT THE DEBRIS AVALANCHE A SWATH OF RAW MOUNTAIN LUMPS WHERE NOT MUCH GROWS BUT WHERE ELK OCCASIONALLY SUNBATHE THE MIDDLE WING RESPECTFULLY CONTAINS NOTHING BUT EMPTY SPACE POINTS AT THE LAVA DOME AND HAS A CATHEDRAL CEILING TO MAKE VISITORS FEEL ESPECIALLY SMALL AND INSIGNIFICANT THAT CEILING'S PROFILE EVOLVES FROM AN M SHAPE AT THE ENTRANCE TO A SINGLE PEAK AT THE BAY END A NOD TO THE WAY THE MOUNTAIN'S CRATER IS SLOWLY FILLING WITH LAVA BY 1996 THE 23MILE NEW HIGHWAY THAT NOW DEADENDS AT THE VISITORS' CENTER WILL PROBABLY EDGE ALONG THE DEBRIS AVALANCHE TO A BOATING RAMP AT THE LAKE NEWLY STOCKED WITH TROUT AND TO AN OBSERVATORY ALSO DESIGNED BY SPENCER ASSOCIATES AND ALSO REASSURINGLY FLARED OUT CONSTRUCTION IN THE 110000ACRE MOUNT ST HELENS NATIONAL VOLCANIC MONUMENT IS EXPECTED TO PRETTY MUCH HALT AFTER THAT THE FOREST SHOULD GRADUALLY GROW BACK COVERING THE RUSTED CABLES AND BRIDGE GIRDER AND ENCROACHING OVER THE PARKING LOT THE REGION'S COMMERCIAL STRIPS WILL ONLY TEMPORARILY KEEP ALIVE THE MEMORY OF 1980 WITH NUMEROUS GIFT SHOPS AN AFRAME VACATION HOUSE FILLED ALMOST TO ITS TIP WITH VOLCANIC MUD ITS OWNER HAD PLANNED TO MOVE IN JUST BEFORE THE EXPLOSION AND INSTEAD ENDED UP OPENING A GIFT SHOP NEXT DOOR AND A CINEDOME THEATER SHOWING THE ERUPTION OF MOUNT ST HELENS ALL DAY THESE ESTABLISHMENTS WILL NO DOUBT SHUT DOWN AFTER A FEW DECADES OF VOLCANIC PEACE ONE DAY NO ARCHITECTURE HERE BUT THE VISITORS' CENTER AND THE OBSERVATORY WILL REMIND ANYONE THAT THE VERY GROUND IS NOT RELIABLE AND THE BUILDINGS MAKE THEIR POINT SO CLEARLY AND QUIETLY THAT I FOR ONE HOPE THAT SOMETHING LIKE THEM WILL RISE IN A FEW YEARS AT A CREST LINE OF THE MISSISSIPPI FLOOD 9308250073 930825 REVIEW & OUTLOOK EDITORIAL ASIDES DISCHARGE RUMBLES SOME HOUSE MEMBERS HAVE COMPLAINED THAT WE LISTED THEIR NAMES AMONG THE 223 MEMBERS WHO HAVEN'T JOINED REP JIM INHOFE'S EFFORT TO END SECRET DISCHARGE PETITIONS SPEAKING FOR THE NONSIGNERS IN TODAY'S LETTERS COLUMN RULES COMMITTEE CHAIRMAN JOE MOAKLEY CLAIMS THAT ENDING SECRECY WOULD MEAN MORE POWER FOR LOBBYISTS AND SPECIAL INTERESTS SEE RELATED LETTER LETTERS TO THE EDITOR WHY MAKE IT EASIER FOR SPECIAL INTERESTS WSJ AUG 25 1993 WE'D HAVE THOUGHT THAT TAKING A STAND AGAINST SUCH FORCES CAME WITH THE JOB WE SUSPECT THAT MR MOAKLEY IS FUNDAMENTALLY WORRIED THAT HIS RULES PANEL WOULD LOSE ITS HAMMERLOCK ON BILLS SOME MEMBERS AREN'T LISTENING TO HIM DEMOCRATS DAVID MANN OF OHIO AND BARNEY FRANK OF MASSACHUSETTS HAVE TOLD CONSTITUENTS RECENTLY THAT THEY FAVOR ENDING THE SECRECY RULE REP FRANK SAYS THE ISSUE IS SIMPLY ABOUT WHETHER HOUSE MEMBERS SUPPORT OPEN GOVERNMENT THREE MORE MEMBERS WILL GIVE REP INHOFE THE MAJORITY THAT HE NEEDS TO LET SOME SUNSHINE INTO CONGRESS 9308250072 930825 LAW LEGAL BEAT HOSPITAL PLAN IN MAINE TESTS ANTITRUST LAW BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL A PROPOSAL TO COMBINE THE OPERATIONS OF ALL THREE MAJOR HOSPITALS IN PORTLAND MAINE IS CREATING AN UNPRECEDENTED TEST OF ANTITRUST LAWS ON HOSPITAL MERGERS THE CHIEF EXECUTIVE OFFICERS OF THE HOSPITALS HAVE GIVEN THEIR STAMP OF APPROVAL TO THE PROPOSAL WHICH AIMS TO CUT COSTS BY CONSOLIDATING MANAGEMENT AND SERVICES UNDER THE PLAN THE HOSPITALS WOULD COMBINE INTO A HOLDING COMPANY GOVERNED BY ONE CHIEF EXECUTIVE OFFICER AND A JOINT BOARD THEY ALSO WOULD MERGE A WIDE VARIETY OF SERVICES FROM EMERGENCY CARE AND GERIATRIC PROGRAMS TO PATIENT BILLING THE PLAN IF APPROVED BY THE HOSPITALS' FULL BOARDS COULD INFLUENCE THE HEALTHCARE BUSINESS WELL BEYOND THE BORDERS OF MAINE THAT'S BECAUSE THE PROPOSAL WILL TEST THE SCOPE OF SOME MAJOR ANTITRUST REFORMS ENACTED IN THE PAST TWO YEARS BY MAINE AND MORE THAN A HALF DOZEN OTHER STATES INCLUDING OHIO AND FLORIDA THE STATE LAWS RELAXED ANTITRUST SCRUTINY OF JOINT VENTURES THAT MIGHT CUT HEALTH COSTS PRIOR TO THOSE REFORMS THE KIND OF CONSOLIDATION PROPOSED FOR THE PORTLAND HOSPITALS WOULD ALMOST CERTAINLY HAVE VIOLATED ANTITRUST LAWS DESIGNED TO PROMOTE COMPETITION EVEN SO IT STILL ISN'T CLEAR WHETHER THE REFORMS PERMIT ALL THE HOSPITALS IN A CITY TO FULLY MERGE THEIR OPERATIONS UNDER THE NEW MAINE LAW STATE REGULATORY AUTHORITIES CAN GRANT AN ANTITRUST EXEMPTION ONLY IF THE LIKELY BENEFITS OF THE DEAL OUTWEIGH THE DISADVANTAGES TO CONSUMERS THE DECISION ON THE PORTLAND PLAN WILL BE WIDELY WATCHED BY HEALTH PROVIDERS AND LEGISLATORS IN STATES THAT ARE CONSIDERING SIMILAR LAWS IF FEDERAL AND STATE ANTITRUST ENFORCERS SMILE ON THIS THAT WILL BE AMAZING SAID WAYNE CLARK A SPOKESMAN FOR MAINE MEDICAL CENTER ONE OF THE THREE HOSPITALS INVOLVED IN THE PROPOSAL YOU'VE GOT THREE HOSPITALS LOCKING UP THE ENTIRE MARKET IN ADDITION TO MAINE MEDICAL WHICH IS THE STATE'S BIGGEST HOSPITAL THE PLAN INCLUDES BRIGHTON MEDICAL CENTER AND MERCY HOSPITAL ALTOGETHER THE THREE HOSPITALS HOUSE ABOUT ONEFIFTH OF THE 4500 HOSPITAL BEDS IN MAINE THE THINKING BEHIND THE RECENT ANTITRUST REFORMS IS THAT UNLIKE OTHER INDUSTRIES COMPETITION IN HEALTH CARE ACTUALLY HARMS CONSUMERS BY DRIVING EVERY HOSPITAL NO MATTER HOW SMALL TO OFFER PATIENTS ALL THE LATEST TECHNOLOGY HOSPITALS THEN ARE FORCED TO RAISE THEIR PRICES TO PAY FOR THE NEW EQUIPMENT THE REFORMS ATTEMPT TO STOP THE COST SPIRAL BY ENCOURAGING EFFORTS TO ELIMINATE DUPLICATE SERVICES STATES ARE ALLOWED TO GRANT EXEMPTIONS FROM FEDERAL ANTITRUST SCRUTINY AS LONG AS THE STATES THEMSELVES ACTIVELY SUPERVISE ANY ANTICOMPETITIVE VENTURES UNTIL NOW MOST HEALTHCARE VENTURES SEEKING PROTECTION UNDER THE NEW LAWS HAVE INVOLVED MEASURES SHORT OF FULLSCALE MERGERS SUCH AS SHARING AMBULANCES AND LABORATORY TESTING FACILITIES THE PORTLAND PLAN HAS REALLY STRETCHED THE ENVELOPE SAID THOMAS CAMPBELL AN ANTITRUST SPECIALIST AT THE LAW FIRM GARDNER CARTON & DOUGLAS IN CHICAGO WHAT YOU'VE GOT ARE THREE HOSPITALS THAT ARE ALL GOING TO HAVE COMMON MANAGEMENT AND THEY'RE GOING TO COORDINATE ALL THE DECISIONS THEY MAKE THE HOSPITALS WON'T COMBINE THEIR OWNERSHIP STRUCTURE OR ASSETS HOWEVER OFFICIALS AT THE PORTLAND HOSPITALS CONCEDE THE PLAN FACES ANTITRUST HURDLES FOR STARTERS THE STATE MIGHT DECIDE NOT TO GRANT AN ANTITRUST EXEMPTION EVEN IF ONE WERE GRANTED FEDERAL ANTITRUST AUTHORITIES COULD STOP THE PLAN IF THE STATE DIDN'T SUFFICIENTLY SUPERVISE IT INDIVIDUAL DOCTORS ALSO MAY BRING PRIVATE ANTITRUST SUITS IF THE COMBINED FACILITY MAKES EXCLUSIVE DEALS WITH SOME PHYSICIANS TO LOCK OUT OTHERS THE HOSPITALS WILL EMPHASIZE TO ANTITRUST REGULATORS THAT THEY ARE NONPROFIT ORGANIZATIONS ACTING IN THE COMMUNITY'S BEST INTEREST SAID DONALD MCDOWELL CEO OF MAINE MEDICAL CENTER SOME OTHER CITIES THE SIZE OF PORTLAND WHICH HAS ABOUT 65000 PEOPLE HAVE ONLY ONE HOSPITAL MR MCDOWELL SAID IF WE ONLY HAD ONE HOSPITAL TODAY WOULD ANYBODY SUGGEST WE GO OUT AND START TWO MORE IN ADDITION THERE ARE SEVERAL SMALL HOSPITALS WITHIN A 40MILE RADIUS OF PORTLAND THAT SHOULD HELP MAINTAIN SOME COMPETITION IF THE CITY'S MAJOR HOSPITALS MERGE THEIR OPERATIONS THE PORTLAND METROPOLITAN AREA ALSO HAS TWO SMALL SPECIALTY HOSPITALS HOWEVER ONLY BRIGHTON MERCY AND MAINE MEDICAL OFFER GENERAL ACUTECARE SERVICES BUT OTHER OBSTACLES REMAIN EVEN BEFORE ANTITRUST ENFORCERS GET ON THE TRAIL MERCY HOSPITAL IS A ROMAN CATHOLIC FACILITY AND THE CHURCH MAY BE RELUCTANT TO GIVE POWER OVER CHURCH ASSETS TO NONCHURCH OFFICIALS CHURCH APPROVAL ALSO COULD BE THREATENED BY THE FACT THAT MAINE MEDICAL CENTER PERFORMS ABORTIONS SAID HOWARD BUCKLEY MERCY'S CEO THE PROPOSAL GOES BEYOND THE AUTHORITY OF THE ORDER OF CATHOLIC NUNS THAT OVERSEES THE HOSPITAL MR BUCKLEY SAID THIS GOES RIGHT TO ITALY DOW CHEMICAL CO ASKED A FEDERAL COURT IN DALLAS TO BLOCK 7500 COSTA RICAN BANANA WORKERS FROM PURSUING PERSONALINJURY SUITS IN TEXAS STATE COURTS STEMMING FROM THEIR USE OF A DOW PESTICIDE THE UNUSUAL LEGAL MANEUVERING COMES JUST BEFORE A NEW LAW IN TEXAS GOES INTO EFFECT THE LAW COULD LIMIT THE ABILITY OF NONRESIDENTS TO SEEK REDRESS THROUGH THE STATES' CIVIL COURTS AT LEAST 3000 OF THE WORKERS ALREADY HAVE SUED DOW CHEMICAL AND SHELL OIL CO A UNIT OF ROYAL DUTCH/SHELL GROUP IN FOUR SUITS IN TEXAS STATE COURTS AND IN A FIFTH SUIT AGAINST SHELL ALONE THE WORKERS CLAIM THAT THEIR EXPOSURE TO THE PESTICIDE FROM THE LATE 1960S TO THE EARLY 1980S CAUSED THEM TO BECOME STERILE CHARLES S SIEGEL A DALLAS ATTORNEY REPRESENTING THE 3000 WORKERS SAID HE WILL BE FILING MORE SUITS ON BEHALF OF THE OTHER BANANA WORKERS IN THE NEXT WEEK IN 1983 BANANA WORKERS SUED DOW AND SHELL IN A HOUSTON STATE COURT OVER THEIR PESTICIDES THAT CASE WHICH EVENTUALLY WAS SETTLED FOR AN UNDISCLOSED AMOUNT LED THE TEXAS LEGISLATURE THIS SPRING TO PASS A LAW GIVING STATE JUDGES THE DISCRETION TO SEND NONRESIDENTS' CIVIL CASES BACK TO THEIR HOME COUNTRIES THE LAW TAKES EFFECT SEPT A SPOKESMAN FOR DOW SAID THE COMPANY'S RECENT SUIT ISN'T RELATED TO THE TIMING OF THE NEW LAW BUT MR SIEGEL ATTORNEY FOR THE WORKERS DISAGREED I THINK THEY BELIEVE WE'RE GOING TO FILE ALL THESE CASES BEFORE THE DEADLINE AND THEY WANT TO MANEUVER THESE CASES INTO A COURT THAT WOULD BE MORE RECEPTIVE TO THEIR POSITION HE SAID DOW WHICH MADE FUMAZONE A PESTICIDE CONTAINING THE CHEMICAL DIBROMOCHLOROPROPANE OR DBCP MAINTAINS THAT BECAUSE THE CHEMICAL WAS PROPERLY APPROVED AND LABELED UNDER FEDERAL LAW STATE COURTS AREN'T THE PROPER JURISDICTION THE COMPANY ARGUES THAT THE DISPUTES SHOULD BE LITIGATED IN THE WORKERS' HOME COUNTRY WHO'S NEWS MAUREEN MAHONEY FORMER US DEPUTY SOLICITOR GENERAL REJOINED THE LOS ANGELES LAW FIRM LATHAM & WATKINS AS A PARTNER IN ITS WASHINGTON OFFICE MS MAHONEY WHO HAS SPECIALIZED IN CONSTITUTIONAL INTERNATIONAL AND EMPLOYMENT CASES WILL BE HEAD OF THE FIRM'S APPELLATE PRACTICE GROUP ANDREA GERLIN IN DALLAS CONTRIBUTED TO THIS ARTICLE 9308250071 930825 HELP THE POOR CUT THE CAP GAINS TAX SATURDAY WILL MARK THE 30TH ANNIVERSARY OF THE MARCH ON WASHINGTON WHERE MARTIN LUTHER KING JR DELIVERED HIS I HAVE A DREAM SPEECH THEN THE FOCUS WAS ON RIGHTS BUT NOW AT LEAST IN SOME QUARTERS THE EMPHASIS IS ON ECONOMIC OPPORTUNITY THE FOLLOWING ARTICLE WAS WRITTEN BY FIVE OF THE EIGHT CURRENT COMMISSIONERS OF THE US COMMISSION ON CIVIL RIGHTS WE WERE SURPRISED WHEN THE MOSTLY BLACK AND LATINO AUDIENCE APPLAUDED ART LAFFER THE WHITE ACADEMIC REAGANITE ECONOMIST AS HE PLEADED FOR TAX CUTS AND REGULATORY RELIEF TO BRING ENTERPRISE AND JOB CREATION TO SOUTH CENTRAL LOS ANGELES BUT FROM THE US COMMISSION ON CIVIL RIGHTS' JUNE HEARINGS ON RACIAL TENSIONS IN LA ONE UNMISTAKABLE MESSAGE CAME THROUGH INNER CITY LA IS STILL BOILING BECAUSE ITS ECONOMY IS DYING BLACKS KOREANAMERICANS LATINOS OTHER MINORITIES AND WHITES AGREED THAT ETHNIC TENSION WILL NOT BE RESOLVED UNTIL ENTREPRENEURSHIP JOBS AND OPPORTUNITY RETURN OLDER URBAN CENTERS WITH DIVERSE IMMIGRANT AND NATIVE POPULATIONS ARE OVERFLOWING WITH ABUNDANT HUMAN RESOURCES SKILL POTENTIAL RESTLESS ENERGY AND THE DESIRE TO WORK THE MISSING INGREDIENT IS CAPITAL FOR NEW BUSINESS INVESTMENT AND RISK TAKING JOHN MACK PRESIDENT OF THE LOS ANGELES URBAN LEAGUE TESTIFIED THAT ACCESS TO CAPITAL IS A MAJOR PROBLEM FOR HIS COMMUNITY IN CREATING BUSINESSES WE NEED TO CREATE VEHICLES AND MECHANISMS AND INSTRUMENTS THAT WILL ENCOURAGE POTENTIAL INVESTORS TO BE WILLING TO MAKE FUNDS AVAILABLE HE SAID THE BEST HOPE OF GETTING CRITICALLY NEEDED SEED MONEY INTO LOS ANGELES AND OTHER TENSE URBAN AREAS IS BY REDUCING THE CAPITALGAINS TAX JUST AS THE FRUIT OF A TREE CONTAINS THE SEEDS FOR MORE TREES SO THE FRUITS OF SUCCESS CAPITAL GAINS CONTAIN THE SEEDS THAT GENERATE NEW INVESTMENT AND SUCCESS FOR MORE PEOPLE POLICIES THAT PUNISH SUCCESS ULTIMATELY KILL THE SEEDS THAT PROMISE ENTERPRISE AND JOBS TO THE POOR WE DON'T WISH TO OVERSIMPLIFY THE MANY FACTORS CONTRIBUTING TO LA'S UNREST THE RAPIDLY GROWING ETHNIC DIVERSITY OF THE CITY COMBINED WITH MEDIA STEREOTYPING AND CHARGES OF POLICE MISCONDUCT AND LACK OF POLICE PROTECTION HAVE ALL CONTRIBUTED TO TENSIONS AMONG PEOPLE WITH CONFLICTING CULTURAL BACKGROUNDS HOWEVER THE IMPOVERISHMENT OF INNERCITY LA HAS WORSENED IN RECENT YEARS UNDER THE IMPACT OF A VIRTUAL GOVERNMENT ONSLAUGHT ON POOR AND MIDDLEINCOME ANGELENOS HOPES OF NEW JOBS AND ENTERPRISE COMING INTO THE CITY HAVE BEEN DASHED BY RISING FEDERAL TAXES ESPECIALLY AFTER THE 1990 BUDGET DEAL INCREASING STATE TAXES IN CALIFORNIA AND NEW REGULATORY DRAGS ON BUSINESS GROWTH FROM THE CLEAR AIR ACT TO THE EXTENSION OF CALIFORNIA'S UNEMPLOYMENT COMPENSATION PROGRAM IF WASHINGTON AND SACRAMENTO HAD CONSCIOUSLY CONSPIRED THEY COULD HARDLY HAVE PLANNED A MORE LETHAL ATTACK ON LA'S POOR AND ETHNIC MINORITIES WE DISCOVERED A NEARCONSENSUS AMONG WITNESSES FROM THE LEFT CENTER AND RIGHT OF THE POLITICAL SPECTRUM TYPIFIED BY THE APPLAUSE FOR ART LAFFER FROM PETER UEBERROTH FORMER COCHAIRMAN OF REBUILD LA TO RICHARD MARTINEZ OF THE SOUTHWEST VOTER REGISTRATION PROJECT TO THE REV EV HILL PASTOR OF MOUNT ZION MISSIONARY BAPTIST CHURCH ALL AGREE THAT THE POOR OF EVERY RACIAL AND ETHNIC GROUP YEARN FOR OPPORTUNITY FOR HOME AND BUSINESS OWNERSHIP CARLTON JENKINS MANAGING DIRECTOR OF FOUNDERS NATIONAL CALIFORNIA'S ONLY AFRICANAMERICANOWNED COMMERCIAL BANK PUT IT BEST THE DREAM REALIZED IS OWNERSHIP YET MOST ADMIT THAT FOR POOR MINORITIES THE DREAM IS BEING DEFERRED BECAUSE GOVERNMENTCREATED BARRIERS TO OWNERSHIP OPPORTUNITIES TAXES AND BUREAUCRATIC REGULATION ARE RISING RATHER THAN FALLING IT WAS OUR EXPERIENCE IN THESE HEARINGS THAT POOR PEOPLE UNDERSTAND HOW CAPITALGAINS TAXES PUNISH NOT THE RICH BUT THOSE WHO ARE STRUGGLING TO ACHIEVE THAT SAME DREAM OF PROSPERITY FOR THEMSELVES AND THEIR FAMILIES HIGH CAPITALGAINS TAXES HAVE THE PERVERSE AND COUNTERPRODUCTIVE EFFECT OF FREEZING UP THE FLOW OF INVESTMENT MONEY TO HIGHRISK AREAS AND FREEZING OUT THE CAPITALSTARVED POOR AND UNEMPLOYED INVESTORS ARE NATURALLY RELUCTANT TO SUPPORT NEW VENTURES IN DECAYING URBAN NEIGHBORHOODS WHERE THEFT DRUG ABUSE VIOLENT CRIME AND BUSINESS BANKRUPTCY RATES ARE ALL VERY HIGH THIS SOURCE OF VENTURE CAPITAL WILL NOT BE TAPPED UNTIL SUFFICIENT INCENTIVES MAKE INNERCITY INVESTMENT MORE ATTRACTIVE TO INDIVIDUAL BACKERS CONVERSELY REDUCING THE TAX ON CAPITAL GAINS EFFECTIVELY INCREASES THE FLOW OF FINANCIAL SEED CORN TO BUDDING ENTREPRENEURS FOR EXAMPLE AFTER THE CAPITALGAINS TAX WAS REDUCED TO 28 FROM 49 IN 1978 THE NUMBER OF BLACKOWNED BUSINESSES INCREASED IN A FIVEYEAR PERIOD BY ONETHIRD TO 308000 FROM 231200 AND ROSE BY AN ADDITIONAL 38 TO 424000 BY 1987 THESE INCREASES ARE GRATIFYING BUT THEY WOULD HAVE TO CONTINUE AT THESE RATES FOR YEARS IN ORDER TO LIFT THE URBAN BLACK POPULATION OUT OF POVERTY EXPANSION HAS SLOWED SIGNIFICANTLY SINCE THE CAPITAL GAINS TAX WAS RAISED IN 1986 TO 28 FROM 20 THE FEDERAL GOVERNMENT'S REVENUE INCOME IN CONSTANT DOLLARS FROM THE TAX ACTUALLY FELL BY 21 BETWEEN 1985 AND 1991 INDICATING REDUCED VALUES OF TRADED ASSETS AND CONTINUOUS DECLINING VALUES THUS DENYING THE SEED MONEY NEEDED FOR ENTREPRENEURIAL INVESTMENT UNTIL THE CAPITALGAINS TAX IS AGAIN REDUCED TO NONPUNITIVE LEVELS LEVELS THAT REWARD RISK AND COMPENSATE LOSS LOS ANGELES AND OTHER URBAN AREAS OF HIGH UNEMPLOYMENT HOMELESSNESS AND LACK OF ENTERPRISE HAVE LITTLE HOPE FOR ECONOMIC RELIEF WHAT'S WORSE IN THE MIDST OF THIS URBAN CRISIS THE SENATE EARLIER THIS YEAR VOTED THOUGH THE HOUSE DID NOT FOLLOW TO RAISE THE CAPITAL GAINS TAX BY IMPOSING A SURTAX THAT PUNISHES SUCCESS THE PURPORTED REASON TO HELP BALANCE THE BUDGET BY INCREASING REVENUES CANNOT BE SERIOUS BECAUSE AS WE HAVE JUST SHOWN RAISING THE TAX RATE ABOVE CURRENT EXCESSIVE LEVELS CAN ONLY DECREASE THE TREASURY'S REVENUE GAIN AS ALWAYS THE RICH WILL FIND WAYS OF EVADING PUNISHMENT BUT TRAGICALLY THE MINORITIES AND POOR WILL NOT HIGHER CAPITALGAINS TAX RATES WILL PERSUADE POTENTIAL INVESTORS TO AVOID THE HIGHCOST HIGHRISK INNER CITIES THE RESULTS WOULD INCLUDE NEW ROUNDS OF URBAN UNEMPLOYMENT FURTHER FALLING WAGES FOR THE WORKING POOR FASTER DECLINES IN URBAN PROPERTY VALUES GREATER DEMANDS ON STRAINED MUNICIPAL TREASURIES FOR WELFARE HOUSING AND OTHER SOCIAL SERVICES AND A LIKELY RISE IN VIOLENT CRIME THE CIVILRIGHTS REVOLUTION OF THE 1960S WHICH BROUGHT BLACKS LATINOS AND OTHER MINORITIES TO EQUALITY IN LEGAL AND VOTING RIGHTS HAS BEEN COMPLETED AND YET EQUAL ACCESS TO THE ECONOMY BY MANY OF THESE SAME PEOPLE IS STILL BEING BLOCKED NOT BY LEGAL BARRIERS BUT BY SERIOUSLY FLAWED GOVERNMENT POLICIES REDUCING THESE MARKET BARRIERS SHOULD BE THE REVOLUTION OF THE 1990S FOR CIVIL RIGHTS ACTIVISTS AND THE CIVIL RIGHTS COMMISSION NOTHING WAS MORE HEARTENING TO THESE COMMISSIONERS THAN HEARING TESTIMONY FROM THRIVING MINORITY ENTREPRENEURS SUCH AS ROBERT TAYLOR PRINCIPAL OF MCKINSEY AND CO AND ERROL SMITH OWNER OF BUILDING MAINTENANCE AMERICA AND CHAIRMAN OF THE NONPROFIT ORGANIZATION NEW VISION BUSINESS COUNCIL THE ENTERPRISING AND SELFRELIANT SPIRIT OF THESE YOUNG AFRICANAMERICAN BUSINESSMEN HAS BROUGHT SUCCESS OUT OF IMPOVERISHED URBAN BEGINNINGS NOR WAS THEIR PRIDE IN THEIR ACCOMPLISHMENTS LOST ON OUR CHAIRMAN ART FLETCHER ONE OF THE EARLY CIVIL RIGHTS LEADERS OF THE 1950S AND 1960S HE SAW IN THEM THE REALIZATION OF THE DREAM OF EQUAL OPPORTUNITY THAT HIS COLLEAGUES MARTIN LUTHER KING JR A PHILIP RANDOLPH MARY MACLEOD BETHUNE AND OTHERS STRUGGLED SO HARD TO ACHIEVE YET NOTHING IS MORE DISCOURAGING THAN THE PROSPECT THAT PEOPLE EQUALLY TALENTED WILL BE CUT OFF FROM FOLLOWING THEIR PATH BECAUSE OF TAX POLICIES THAT MAKE IT DIFFICULT FOR THE SUCCESSFUL TO HELP THE ASPIRING AS MR TAYLOR WARNED THIS GENERATION OF YOUNG MINORITIES IS LOOKING AT A RAPIDLY ACCELERATING DIVIDE BETWEEN THE HAVE AND HAVENOTS THEY MAY REPRESENT OUR LAST OPPORTUNITY OF BECOMING OWNERS AND FULL PARTICIPANTS IN THE BROADER ECONOMY THE WITNESSES WE HEARD FROM LA'S RIOTTORN AREAS EXPRESSED IT IN DIFFERENT WAYS BUT THEIR MESSAGE TO US TO THE PRESIDENT AND TO CONGRESS COULD NOT BE CLEARER GIVE US THE SEED CAPITAL FOR INNERCITY JOBS AND INVESTMENT AND WE WILL USE OUR RICH POTENTIAL TO REBUILD OUR CITY AND TRANSFORM AMERICA 9308250070 930825 MOODY'S MAY LOWER SONY'S DEBT RATINGS NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT MAY DOWNGRADE DEBT RATINGS OF SONY CORP AND TWO OF ITS SUBSIDIARIES BECAUSE OF CONCERNS ABOUT THE COMPANY'S DEBTREDUCTION SCHEDULE MOODY'S SAID IT IS REVIEWING ABOUT 37 BILLION OF DOUBLEA3 SENIOR UNSECURED DEBT OF THE JAPANESE ELECTRONICS MANUFACTURER AND ITS FINANCIALLY SUPPORTED SUBSIDIARIES SONY CAPITAL CORP AND SONY EUROFINANCE BV THE ACTION REFLECTS MOODY'S CONCERN THAT THE CURRENT DOWNWARD PRESSURE ON SONY'S EARNINGS AND FREE CASH FLOW MAY CONTINUE OVER THE INTERMEDIATE TERM AND FURTHER DELAY THE COMPANY'S PROGRAM FOR DEBT REDUCTION THE RATINGS AGENCY SAID THE AGENCY'S REVIEW WILL FOCUS ON SONY'S ABILITY TO IMPROVE MARGINS AND CASH FLOW TO MEANINGFULLY REDUCE DEBT WHILE CONTINUING TO INVEST IN THE DEVELOPMENT OF NEW PRODUCTS AND TO COPE WITH THE STRENGTHENING YEN MOODY'S ADDED 9308250069 930825 WHO'S NEWS 20TH CENTURY INDUSTRIES FOUNDER LOUIS FOSTER TO STEP DOWN AS CHIEF WOODLAND HILLS CALIF 20TH CENTURY INDUSTRIES SAID ITS 80YEAROLD FOUNDER LOUIS W FOSTER WILL STEP DOWN AS CHIEF EXECUTIVE EFFECTIVE SEPT 1 MR FOSTER WILL REMAIN CHAIRMAN AND HE WILL HEAD A COMMITTEE TO RECRUIT A PERMANENT CEO THE COMPANY SAID IN THE INTERIM NEIL H ASHLEY 70 WAS NAMED TO THE POST MR ASHLEY A DIRECTOR OF THE INSURANCE HOLDING COMPANY WAS FORMERLY PRESIDENT OF ITS 20TH CENTURY INSURANCE CO SUBSIDIARY HE IS AN ATTORNEY WITH THE FIRM SLUTES SAKRISON EVEN GRANT & PELANDER IN TUCSON ARIZ I AM PLEASED THAT NEIL ASHLEY WILL ASSUME DAYTODAY MANAGEMENT RESPONSIBILITIES FOR THE COMPANY MR FOSTER SAID IN A STATEMENT THIS CHANGE WILL ENABLE ME TO DEVOTE MY FULL ATTENTION TO FINDING THE VERY BEST CANDIDATE AND THEREAFTER I LOOK FORWARD TO SPENDING MORE TIME WITH MY FAMILY AND FRIENDS 9308250068 930825 INTERNATIONAL BRIEF BASS PLC HOLIDAY INN UNIT SIGNS PACT TO DEVELOP HOTELS IN INDIA BASS PLC A UK BREWING AND LEISURE GROUP SAID ITS HOLIDAY INN WORLDWIDE DIVISION SIGNED A JOINTVENTURE AGREEMENT WITH INN REALTY HOTEL VENTURES LTD OF INDIA TO DEVELOP 70 FRANCHISED HOLIDAY INN HOTELS THROUGHOUT INDIA OVER 10 YEARS BASS SAID THE VENTURE WILL FOCUS ON SECONDARY CITIES CATERING TO DOMESTIC TRAVELERS BASS SAID THE POTENTIAL MARKET REPRESENTS 30 MILLION HOUSEHOLDS INN REALTY WAS FORMED FOR THE VENTURE BY THE SIAM VIDHYA GROUP ATLANTABASED HOLIDAY INN IS OWNED BY BASS IT IS THE WORLD'S LARGEST SINGLE HOTEL BRAND WITH 1750 HOTELS IN 50 COUNTRIES A BASS SPOKESMAN IN LONDON SAID THERE ARE FOUR HOLIDAY INNS IN INDIA WHICH ARE FRANCHISED AND MARKETED TO FOREIGN TRAVELERS BASS WILL INVEST LESS THAN 4 MILLION IN THE FIRST FIVE YEARS THE SPOKESMAN SAID AFTER THAT IT'S EXPECTED THAT THE VENTURE WOULD RAISE ITS OWN CAPITAL THE FIRST HOTEL WILL OPEN BEFORE YEAR'S END 9308250067 930825 INTERNATIONAL SWEDISH RESERVES DECLINE STOCKHOLM SWEDEN'S FOREIGN EXCHANGE RESERVES FELL 21 BILLION KRONOR 260 MILLION TO 1823 BILLION KRONOR IN THE WEEK ENDED MONDAY ACCORDING TO SVERIGES RIKSBANK THE CENTRAL BANK OF SWEDEN THE DECREASE FOLLOWS A RISE OF 35 BILLION KRONOR IN RESERVES A WEEK EARLIER 9308250066 930825 INTERNATIONAL FOREIGN INVESTMENT IN TAIWAN TAIPEI TAIWAN FOREIGN INVESTMENT IN TAIWAN APPROVED IN THE FIRST SEVEN MONTHS OF THE YEAR AMOUNTED TO 551 MILLION DOWN 28 FROM 764 MILLION IN THE YEAREARLIER PERIOD THE INVESTMENT COMMISSION REPORTED FOR JULY THE FIGURE STOOD AT 121 MILLION COMPARED WITH JUNE'S 118 MILLION AND MAY'S 548 MILLION THE AGENCY ATTRIBUTED THE 28 DECLINE TO DECREASED JAPANESE INVESTMENT OF 134 MILLION DOWN 41 FROM 226 MILLION IN THE YEAREARLIER PERIOD TAIWAN'S ELECTRONICS AND ELECTRICAPPLIANCE INDUSTRY MADE UP THE LARGEST PORTION OF APPROVED FOREIGN INVESTMENT 140 MILLION OR 25 OF THE TOTAL SECOND WAS THE INTERNATIONALTRADE INDUSTRY'S 12 FOLLOWED BY THE CHEMICALMANUFACTURING INDUSTRY'S 11 THE FOODANDBEVERAGE INDUSTRY'S 8 AND THE FINANCEANDINSURANCE INDUSTRY'S 7 9308250065 930825 INTERNATIONAL BRIEF TELECOM CORP UNION WINS COURT ORDER HALTING STAFF RESTRUCTURING UNION LEADERS FOR WORKERS AT TELECOM CORP OF NEW ZEALAND WON A COURT INJUNCTION PREVENTING THE COMPANY FROM CARRYING OUT FURTHER STAFF RESTRUCTURING FOR AT LEAST THREE WEEKS THE ORDER PREVENTS TELECOM FROM LAYING OFF STAFF IT CONSIDERS SURPLUS AND ALSO PREVENTS THE COMPANY FROM HIRING THE COMMUNICATIONS AND ENERGY WORKERS UNION WHICH REPRESENTS MOST OF TELECOM'S WORKERS CLAIMED THAT A CURRENT STAFF RESTRUCTURING BREACHES A CONTRACT TELECOM HAS WITH ITS WORKERS NEW ZEALAND'S LABOR COURT SAID TELECOM HASN'T ADEQUATELY CONSULTED WITH ITS WORKERS ABOUT THE CHANGES AND ORDERED THE COMPANY NOT TO MAKE FURTHER CHANGES FOR AT LEAST THREE WEEKS AS PART OF A COSTCUTTING PROGRAM THE NATIONAL PHONE COMPANY EXPECTS TO REDUCE STAFF NUMBERS BY ABOUT 5000 IN THE NEXT FOUR YEARS TELECOM NEW ZEALAND'S LARGEST COMPANY BY MARKET VALUE IS CONTROLLED BY BELL ATLANTIC CORP AND AMERITECH CORP OF THE US 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 9308250064 930825 INTERNATIONAL BRIEF BRITISH AEROSPACE PLC LASTDITCH EFFORT IS MADE TO SAVE TAIWANESE VENTURE OFFICIALS OF BRITISH AEROSPACE PLC AND TAIWAN AEROSPACE CORP CONFERRED FOR A SECOND DAY TUESDAY IN TAIWAN IN A LASTDITCH ATTEMPT TO RESCUE THEIR PLANNED JOINT VENTURE TO PRODUCE PASSENGER JETS JOHN CAHILL CHAIRMAN OF BRITISH AEROSPACE WHO ARRIVED IN TAIPEI SUNDAY AND TAIWANESE OFFICIALS DECLINED COMMENT ON THE CLOSEDDOOR NEGOTIATIONS BRITISH AEROSPACE SPOKESMAN IAN WOODWARD SAID BOTH SIDES WOULD CONTINUE THE NEGOTIATIONS ON THE FINANCING AND OTHER ISSUES OF THE PROPOSED 375 MILLION JOINT VENTURE THE PLANNED BRITISH AEROSPACE DEAL HIT A SNAG LAST WEEK WHEN A TAIWANESE BANKING SYNDICATE HEADED BY THE STATERUN CHIAOTUNG BANK DEMANDED ASSETS FROM THE BRITISH COMPANY AS COLLATERAL BEFORE PROVIDING LOANS FOR THE JOINT VENTURE BRITISH AEROSPACE REJECTED THE COLLATERAL DEMAND AND ASKED TAIWANESE AUTHORITIES TO RESOLVE THE FINANCING DISPUTE 9308250063 930825 MARKETING & MEDIA AMERICAN EXPRESS UNIT ANNOUNCES PUBLISHER AT TRAVEL & LEISURE NEW YORK AMERICAN EXPRESS PUBLISHING CORP NAMED RICHARD B BARTHELMES PUBLISHER OF TRAVEL & LEISURE THE NATION'S LARGESTCIRCULATION TRAVEL MAGAZINE MR BARTHELMES WHO HAS BEEN PUBLISHER OF CONDE NAST PUBLICATIONS INC'S GOURMET MAGAZINE SINCE 1987 BECOMES AN AMERICAN EXPRESS PUBLISHING EXECUTIVE VICE PRESIDENT AND GROUP PUBLISHING DIRECTOR AMERICAN EXPRESS PUBLISHING IS OWNED BY AMERICAN EXPRESS CO BUT ITS MAGAZINES HAVE BEEN MANAGED SINCE LAST MARCH BY TIME INC VENTURES A SPECIAL PUBLISHING UNIT OF TIME WARNER INC TIME INC HAS BEEN LOOKING TO REESTABLISH THE PRESTIGE OF TRAVEL & LEISURE WHICH IN THE FIRST HALF WAS DOWN 8 IN AD PAGES TRAVEL & LEISURE RECENTLY NAMED NANCY NOVOGROD THE FORMER EDITOR OF HG MAGAZINE ITS EDITOR IN CHIEF TO FILL MR BARTHELMES'S POST AT GOURMET CONDE NAST OWNED BY ADVANCE PUBLICATIONS INC NAMED PETER KING HUNSINGER PUBLISHER MR HUNSINGER 37 YEARS OLD WAS ADVERTISING DIRECTOR OF GOURMET 9308250062 930825 ZENECA TO BUILD TENNESSEE PLANT WILMINGTON DEL ZENECA INC SAID IT PLANS TO BUILD A PLANT TO PRODUCE CHEMICAL EXTRACTION REAGENTS FOR THE MINING INDUSTRY PART OF A 47 MILLION INVESTMENT PROGRAM AT ITS FACILITY IN MT PLEASANT TENN ZENECA A 24 BILLION US BIOSCIENCE COMPANY IS PART OF ZENECA GROUP PLC OF THE UK 9308250061 930825 FOREIGN EXCHANGE DOLLAR ENDS MIXED AS TRADERS AWAIT BUNDESBANK COUNCIL MEETING ON RATES BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK WITH THE CURRENCY MARKET IN A STATE OF SUSPENDED ANIMATION BEFORE TOMORROW'S BUNDESBANK COUNCIL MEETING THE DOLLAR ENDED MIXED THE US CURRENCY WAS SLIGHTLY LOWER AGAINST THE MARK AFTER THE MARK'S INCREASE AGAINST STERLING SPILLED OVER INTO GAINS AGAINST OTHER CURRENCIES BUT WITH THE YEN DEPRESSED BY THE MARK'S STRENGTH THE DOLLAR ENDED HIGHER AGAINST THE JAPANESE CURRENCY TRADERS SAID THE MARK ROSE AGAINST THE POUND ON RUMORS THAT THE DANISH CENTRAL BANK WOULD ISSUE A STERLING BOND AND THEN SELL THE PROCEEDS FOR MARKS THAT SENT THE POUND CRASHING THROUGH TECHNICAL LEVELS AGAINST THE DOLLAR AND MARK AND IT ENDED LOWER AGAINST BOTH LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16790 MARKS DOWN FROM 16835 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10375 YEN UP FROM 10305 YEN STERLING WAS TRADING AT 14985 DOWN FROM 15050 THE POUND WAS ALSO AT 25160 MARKS DOWN FROM 25337 MARKS LATE MONDAY ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10410 YEN AND AT 16790 MARKS WITH LITTLE FRESH NEWS TO TRADE ON THE MARKET IS ALREADY TENSE WITH EXPECTATIONS FOR TOMORROW'S MEETING OF THE BUNDESBANK POLICY COUNCIL THE MEETING WILL BE THE FIRST SINCE JULY 29 WHEN THE BUNDESBANK'S FAILURE TO CUT ITS DISCOUNT RATE WHICH ACTS AS A FLOOR FOR MONEYMARKET RATES FUELED SPECULATIVE ATTACKS ON OTHER EUROPEAN CURRENCIES DISCOUNT RATE TRADERS SAID THE MARKET NOW EXPECTS A SMALL CUT IN THE DISCOUNT RATE TOMORROW PERHAPS 25 TO 50 BASIS POINTS LARGELY FOR TECHNICAL REASONS A BASIS POINT IS 1/100TH OF A PERCENTAGE POINT ALTHOUGH THE 675 DISCOUNT RATE IS SUPPOSED TO BE A FLOOR RATE DAYTODAY GERMAN MONEYMARKET RATES HAVE DROPPED TO AS LOW AS 640 DURING AUGUST THAT WAS AT LEAST PARTLY BECAUSE OF THE HUGE LIQUIDITY GENERATED BY LAST MONTH'S CURRENCY CRISIS WHEN EUROPEAN CENTRAL BANKS SUPPORTED WEAKER CURRENCIES BY SELLING MASSIVE AMOUNTS OF MARKS IN RETURN FOR THOSE CURRENCIES DAYTODAY RATES HAVE SINCE EDGED ABOVE THE DISCOUNT RATE TO AROUND 685 BUT THE BUNDESBANK STILL FINDS ITS HANDS TIED IN ITS WEEKLY REPURCHASE OPERATIONS ITS MAIN TOOL FOR INFLUENCING GERMAN MONEY MARKETS ORDINARILY IT LETS THE MARKET INFLUENCE THE REPO RATE THROUGH A VARIABLERATE AUCTION OF REPURCHASE RATE AGREEMENTS BUT IN RECENT WEEKS WITH THE MONEYMARKET RATE ONLY A FEW BASIS POINTS ABOVE THE DISCOUNT RATE BUNDESBANK POLICY MAKERS HAVE FELT OBLIGATED TO FIX THE REPO RATE AT 680 AS THEY DID AGAIN YESTERDAY A CUT IN THE DISCOUNT RATE TOMORROW TRADERS SAID WOULD GIVE THE BUNDESBANK MORE TECHNICAL FLEXIBILITY ON REPO RATES PEOPLE ARE DISCOUNTING A 25BASISPOINT CUT IN THE DISCOUNT RATE SAID BOB NEAR A VICE PRESIDENT AT BANK OF NEW YORK IF WE GET THAT IT BECOMES A QUESTION AS TO WHICH EUROPEANS WILL FOLLOW MAINLY IF THE BANK OF FRANCE WILL FOLLOW WITH A CUT IN ITS 5TO10DAY RATE FRANCE RAISED THE 5TO10DAY RATE TO 10 FROM 775 IN JULY IN AN ATTEMPT TO DEFEND THE FRANC AGAINST SPECULATORS TRADERS ARE NOW WATCHING TO SEE IF FRANCE RETURNS THE RATE TO ITS LEVEL BEFORE THE CURRENCY CRISIS IF THE BUNDESBANK CUTS RATES TRADERS SAID CUTS ARE LIKELY TO FOLLOW FROM OTHER EUROPEAN COUNTRIES INCLUDING THE NETHERLANDS SPAIN AND PORTUGAL A GENERAL CLIMATE OF LOWER RATES IN EUROPE TRADERS SAID MIGHT PROVE BULLISH FOR THE DOLLAR 9308250060 930825 CORPORATE FOCUS CLONES BESIEGE PROFIT MARGINS OF SOUND BLASTER'S PARENT SINGAPORE'S CREATIVE TECHNOLOGY FACES FIGHT FOR PC SOUNDCARD CROWN BY G PIERRE GOAD STAFF REPORTER OF THE WALL STREET JOURNAL SINGAPORE IT'S CRUNCH TIME FOR CREATIVE TECHNOLOGY LTD THE SINGAPORE COMPANY WHOSE STOCK IS TRADED ON THE NATIONAL OVERTHECOUNTER MARKET IN THE US HELPED SPAWN A MULTIMEDIA FRENZY IN THE PERSONALCOMPUTER INDUSTRY WITH ITS SOUND BLASTER SOUND CARDS INDEED CREATIVE ESTABLISHED THE SOUNDCARD MARKET AND AS ITS LEADER HAS SOLD MORE THAN 25 MILLION OF THE DEVICES SMALL ADDON COMPUTER BOARDS THAT ALLOW IBMCOMPATIBLE PCS TO MAKE RECORD AND MANIPULATE SOUNDS BUT NOW MARKET SHARE IS SLIDING CHEAPER CLONES ARE THREATENING CREATIVE'S FAT PROFIT MARGINS AND ITS MAIN COMPETITOR IS GETTING BETTER REVIEWS IN COMPUTER MAGAZINES AND ON WALL STREET THEY ARE GOING TO GET BASHED IN THE MARKETPLACE GLOATS PAUL JAIN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE NO 2 SOUNDCARD MAKER MEDIA VISION TECHNOLOGY INC OF FREMONT CALIF IF I WERE THEM I'D BE REALLY SCARED CREATIVE TECHNOLOGY'S THREE FOUNDERS WHO TOGETHER OWN 63 OF THE COMPANY SAY THEY AREN'T FRIGHTENED CREATIVE'S RIVALS MAKE A LOT OF NOISE SAYS SIM WONG HOO CHAIRMAN AND CHIEF EXECUTIVE WE BELIEVE WE CAN OUTRUN THEM BUT INVESTORS ARE JUMPY CREATIVE'S NASDAQLISTED SHARES PLUNGED 475 OR 17 TO 2275 ON JULY 29 THE DAY AFTER ITS USBASED CHIEF FINANCIAL OFFICER QUIT YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING CREATIVE WAS QUOTED AT 2275 UP 175 THE STOCK PEAKED AT 3850 A SHARE IN FEBRUARY I THINK THE PRICE DROP IS AN INDICATION THAT THERE ARE QUESTION MARKS ABOUT THE COMPANY ITS PRODUCTS AND ITS STRATEGY SAYS JOHN C MAXWELL A PRINCIPAL AT SOUNDVIEW FINANCIAL GROUP INC A STAMFORD CONN SECURITIES FIRM THAT SPECIALIZES IN HIGH TECHNOLOGY CREATIVE'S CHIEF FINANCIAL OFFICER KENNETH J MCEWAN WHO JOINED THE COMPANY IN APRIL 1992 QUIT TO PURSUE AN ENTREPRENEURIAL VENTURE CREATIVE SAYS IN APRIL THE TOP EXECUTIVE AT THE COMPANY'S US UNIT CREATIVE LABS INC MILPITAS CALIF RESIGNED MR SIM SAYS THAT IN A HIGHTECH COMPANY IT'S QUITE COMMON TO HAVE HIGH MANAGEMENT TURNOVER HOWEVER LISE BUYER PERSONALCOMPUTER ANALYST AT FUND MANAGER T ROWE PRICE IN BALTIMORE SAYS THAT THE MANAGEMENT TURNOVER IS A YELLOW FLAG FOR INVESTORS CREATIVE'S IMMEDIATE CHALLENGES ARE FALLING PRICES AND DECLINING MARKET SHARE YESTERDAY CREATIVE LAUNCHED A CHEAPER VERSION OF ITS HIGHEND 16BIT SOUND CARDS MEDIA VISION INTRODUCED A SIMILAR BAREBONES 16BIT CARD TWO MONTHS AGO HOWEVER CREATIVE DIDN'T DROP THE LIST PRICES OF ITS EXISTING SOUND BOARDS MANY ANALYSTS EXPECT THE COMPANY TO DO EXACTLY THAT WITHIN THE NEXT FEW WEEKS WELL IN TIME FOR THE CHRISTMAS SHOPPING SEASON ANALYSTS WARN THAT A PRICE WAR WOULD CRIMP CREATIVE'S 42 GROSS PROFIT MARGIN CREATIVE'S EXECUTIVES ARE COY ABOUT THEIR PRICING PLANS THE GOAL OF THE COMPANY IS TO MAINTAIN OUR LEADERSHIP IN THE MARKET SAYS CHAY KWONG SOON GROUP PRESIDENT AND CHIEF OPERATING OFFICER WHO IS A MEMBER OF THE FOUNDING TRIO PROFIT MARGINS ARE A TOOL TO REACH THAT END BUT THERE IS NO NEED TO SACRIFICE PROFIT MARGINS IF THE OBJECTIVE IS LEADERSHIP STEVEN ESKENAZI NEWMEDIA ANALYST AT ALEX BROWN & SONS IN BALTIMORE FORECASTS SALES OF 415 MILLION AND EARNINGS OF 210 A SHARE FOR CREATIVE FOR THE YEAR ENDING NEXT JUNE 30 CREATIVE POSTED NET INCOME OF 448 MILLION OR 109 A SHARE ON SALES OF 2917 MILLION IN FISCAL 1993 THE LATEST YEAR INCLUDED A ONETIME CHARGE OF 22 MILLION OR 54 CENTS A SHARE BUT WE BELIEVE IF CREATIVE REALLY DECIDED TO DROP THE HAMMER ON THE CLONES THEY WOULD NEED TO ACHIEVE 450 MILLION TO 500 MILLION IN SALES IN ORDER TO ACHIEVE 210PLUS IN EARNINGS PER SHARE MR ESKENAZI SAYS INDUSTRY SHIPMENTS ARE RUNNING AT 350000 TO 400000 SOUND BOARDS A MONTH ACCORDING TO MARKET RESEARCHERS DATAQUEST INC EXCLUDING MULTIMEDIA UPGRADE KITS WHICH TYPICALLY INCLUDE A CDROM DRIVE SOUND CARD AND SOFTWARE WORLDWIDE INDUSTRY SALES OF SOUND BOARDS SHOULD HIT ABOUT 320 MILLION THIS YEAR AND 400 MILLION IN 1994 MR CHAY SAYS MULTIMEDIA KITS ACCOUNT FOR ABOUT 30 OF CREATIVE'S SALES CREATIVE HAS ABOUT 50 OF THE OVERALL SOUNDCARD MARKET DOWN FROM 60 A FEW MONTHS AGO DATAQUEST SAYS MEDIA VISION HAS ABOUT 20 AZTECH SYSTEMS PTE LTD A SINGAPORE COMPANY THAT ENTERED THE BUSINESS LAST YEAR ALREADY HAS GRABBED 16 OF THE MARKET WITH ITS LOWPRICED BOARDS NEW ENTRANTS IN THE BUSINESS INCLUDE MOUSEMAKER LOGITECH INC FREMONT CALIF AND MODEMMAKER CARDINAL TECHNOLOGIES INC LANCASTER PA PERHAPS MORE IMPORTANTLY CREATIVE AND MEDIA VISION ARE RUNNING ABOUT EVEN IN THE MARKET FOR 16BIT SOUND CARDS SAYS BRUCE RYON A MULTIMEDIA ANALYST AT DATAQUEST THE 16BIT CARDS ARE EXPECTED TO SUPPLANT EIGHTBIT SOUND CARDS AS THE STANDARD MEDIA VISION AND MANY ANALYSTS BELIEVE SOUNDCARD MARGINS WILL SHRINK AS THE DEVICE BECOMES A COMMODITY MEDIA VISION ALSO BELIEVES THAT PC MAKERS WILL BUILD SOUND CAPABILITIES ONTO A PC'S MOTHERBOARD OR MAIN PRINTED CIRCUIT BOARD TO PREPARE FOR THOSE CHANGES MEDIA VISION IS POSITIONING ITSELF AS A MAKER OF CHIPSETS THE MICROPROCESSOR HEART OF SOUND CARDS THAT'S A SMART IDEA SAYS DAVID COURSEY EDITOR OF PC LETTER A US NEWSLETTER CREATIVE IS UNCONVINCED UP TO THIS POINT IN TIME I REALLY DOUBT THERE IS A BIG MARKET OUT THERE FOR CHIPSETS MR CHAY SAYS BESIDES WE MAKE A BIT MORE MONEY SELLING THE WHOLE BOARD MR SIM ADDS DATAQUEST'S MR RYON COMMENTS I THINK THEY ARE VERY SHORTSIGHTED SOME INDUSTRY WATCHERS AND CREATIVE ARGUE THAT SALES OF ADDON SOUND CARDS WILL CONTINUE TO BOOM BECAUSE MORE THAN 90 OF EXISTING PCS AREN'T EQUIPPED FOR SOUND THAT'S A FLAWED ARGUMENT SAYS DAVID BARON ASSOCIATE EDITOR OF DIGITAL MEDIA A US NEWSLETTER MR BARON ASSERTS THAT FOR OWNERS OF MANY OLDER PCS WHO WANT TO ADD MULTIMEDIA IT JUST MAKES MORE SENSE TO BUY A NEW SYSTEM LONGER TERM WHICH IN THE COMPUTER INDUSTRY MAY MEAN JUST A FEW MONTHS CREATIVE MUST FIND ANOTHER HIT PRODUCT TO REPLACE THE SOUND BLASTER WE'RE NOT SHORT OF IDEAS MR SIM SAYS WE HAVE BEEN LOOKING FOR THE KILLER APPLICATION FOR VIDEO CREATIVE PAID 11 MILLION IN JUNE FOR A CALIFORNIA STARTUP THAT MAKES A 3999 VIDEOCONFERENCING ADDON FOR APPLE MACINTOSHES CREATIVE WANTS TO MAKE AN IBM PCCOMPATIBLE VERSION AND BRING THE PRICE DOWN TO A FEW HUNDRED DOLLARS I SEE THAT AS A BREAKTHROUGH TECHNOLOGY SAYS NG KAI WA VICE CHAIRMAN AND CHIEF TECHNICAL OFFICER AND THE THIRD MEMBER OF CREATIVE'S FOUNDING TRIUMVIRATE WE ENVISION THAT IF WE DO IT RIGHT EVERY HOME WILL WANT ONE MR NG SAYS 9308250059 930810 LETTERS TO THE EDITOR IMF'S ECONOMIC MASSACRE IN BALKANS IN HIS GRAND MULTIFACETED ROAD MAP FOR RESOLVING THE BALKANS QUAGMIRE EDITORIAL PAGE JULY 12 ALBERT WOHLSTETTER RECOMMENDS THE TEMPORARY DEPLOYMENT OF US SPECIAL FORCES TO ADVISE AND TRAIN THE BOSNIANS IN THE TACTICS AND TECHNOLOGY OF MODERN WARFARE IT'S ALWAYS EASY TO INVOKE THE VIETNAM EXPERIENCE WHEN ARGUING AGAINST FOREIGN MILITARY ENTANGLEMENTS BUT THE PARALLEL RUNS DEEPER THAN THE LIMITED GREEN BERET ADVISORY MISSION THAT DIDN'T END UNTIL 58000 AMERICAN LIVES WERE LOST IN THE JUNGLES OF SOUTHEAST ASIA UNHAPPILY BOTH TRAGEDIES CAN BE TRACED TO THE COLLAPSE OF CIVIL ORDER CAUSED BY THE DISASTROUS ECONOMIC PRESCRIPTIONS FOISTED ON EACH COUNTRY EITHER BY US GOVERNMENT EXPERTS IN THE CASE OF VIETNAM OR THEIR PROGENY AT THE INTERNATIONAL MONETARY FUND IN THE CASE OF FORMER YUGOSLAVIA IN DECEMBER 1962 PRIOR TO LARGESCALE US TROOP EMPLACEMENTS THE KENNEDY ADMINISTRATION FORCED THE SAIGON GOVERNMENT OF NGO DINH DIEM TO ADOPT AN AMBITIOUS SOCIAL SPENDING PROGRAM FUNDED BY TAX INCREASES TO WIN THE HEARTS AND MINDS OF THE SOUTH VIETNAMESE PEOPLE IN SIX MONTHS WITH THE ECONOMY SAGGING UNDER THE NEW TAX BURDEN THE KENNEDY ECONOMIC TEAM ADVISED CURRENCY DEVALUATION IN THE COLLAPSE THAT FOLLOWED DIEM LOST THE SUPPORT OF HIS PEOPLE AND WAS ASSASSINATED BY THE MILITARY AFTER IT HAD BEEN ADVISED BY THE US THAT IT COULD NO LONGER PROP UP AN UNPOPULAR REGIME AS THE JOURNAL HAS POINTED OUT MANY TIMES THE US THEN WAS MORALLY OBLIGED TO FINISH WHAT IT HAD BEGUN TRACING THE ECONOMIC MASSACRE OF THE BALKANS DOES NOT REQUIRE SUCH A LONGTERM PERSPECTIVE IN 1986 ONE YUGOSLAV NEW DINAR WAS WORTH 22 THEN THE IMF SHOCK TROOPS TOOK OVER ECONOMIC POLICY IMPOSING DEVALUATION A WAGE FREEZE AND PRICE DECONTROL AS REVENUES TO THE GOVERNMENT PLUMMETED IN THE CONTRACTION THAT INEVITABLY FOLLOWED THE IMF ORDERED TAX INCREASES TO BALANCE THE BUDGET BY DECEMBER 1989 THE NEW DINAR'S VALUE STOOD AT 11 CENTS WITH THE SAVINGS OF THE POPULATION VIRTUALLY EXTINGUISHED YUGOSLAVIA BEGAN BREAKING UP ALONG ETHNIC LINES IN THE COMPETITION FOR CONTROL OF AN EVERSHRINKING POOL OF RESOURCES THE STATE REELED INTO CHAOS AND HYPERINFLATION THE DINAR'S VALUE SHRANK TO ONEHALF CENT BY LAST SUMMER AND TODAY ONE DOLLAR BUYS TWO MILLION DINARS MR WOHLSETTER ONE OF THE MOST GIFTED GEOPOLITICAL STRATEGISTS OF THE CENTURY HAS OBVIOUSLY SPENT CONSIDERABLE EFFORT TO CONSTRUCT WHAT HE BELIEVES IS A PLAUSIBLE STRATEGICMILITARY SCENARIO FOR RESOLUTION OF THE BALKANS NIGHTMARE BUT ANY STRATEGY THAT DOES NOT GIVE PRIMACY TO RESTORING ECONOMIC HOPE REVERSING THE DESTRUCTION WROUGHT BY THE IMF'S SHOCK THERAPY IS AS IMPLAUSIBLE AND DESTINED TO FAIL AS THOSE WE PURSUED IN SOUTHEAST ASIA MR WOHLSTETTER'S ARTICLES ON THE BALKAN QUAGMIRE GIVE AN EXCELLENT INSIGHT INTO THE RECENT BRUTAL WAR WAGED BY SERBIA AGAINST HER NEIGHBORS FIRST SLOVENIA THEN CROATIA AND NOW BOSNIA IT SHOULD BE POINTED OUT THAT THIS LATEST PUSH TOWARD A GREATER SERBIA IS A NATURAL EXTENSION OF A 150YEAROLD PROCESS THAT STARTED AS SERBIA WAS GRADUALLY LIBERATED FROM MORE THAN 400 YEARS OF OTTOMAN TURKISH RULE IN 1844 THEN SERBIAN MINISTER OF INTERIOR GARASANIN DISCLOSED PLANS FOR THE REALIZATION OF GREATER SERBIA BY EXPANSION AGAINST SERBIA'S NEIGHBORS SINCE ITS INCEPTION THE PURSUIT OF GREATER SERBIA HAS CAUSED MANY WARS AND ATROCITIES BETWEEN SERBIA AND ITS NEIGHBORS THIS INCLUDES TWO WARS WITH THE BULGARS IN THE 1880S AND AGAIN IN 19121913 AND THE INFAMOUS 1914 ASSASSINATION IN SARAJEVO OF THE HEIR TO THE AUSTROHUNGARIAN THRONE ARCHDUKE FERDINAND AND HIS WIFE THIS TERRORIST ACT BY TRAINED SERBIAN EXTREMISTS STARTED WORLD WAR I WHICH EVENTUALLY LED TO ONE FORM OF GREATER SERBIA THE FORMATION OF YUGOSLAVIA WHERE SERBS HAD TOTAL DOMINATION OVER OTHER NATIONALITIES ESPECIALLY BRUTAL WAS THEIR TREATMENT OF CROATIANS WHO WERE PERSECUTED AND MURDERED BY SERBIANDOMINATED POLICE SOLELY BASED ON THEIR NATIONAL ORIGIN THIS PROMPTED ALBERT EINSTEIN TO WRITE AN OPEN LETTER TO THE NEW YORK TIMES ON MAY 6 1931 PROTESTING CRUELTY AND BRUTALITY PRACTICED UPON THE CROATIANS THE TREATMENT OF CROATIANS MUSLIMS ALBANIANS AND OTHER NONSERB NATIONALITIES IN YUGOSLAVIA WAS A PREVIEW OF WHAT WAS IN STORE FOR THEM SHOULD A BONAFIDE GREATER SERBIA EVER FULLY MATERIALIZE CONDEMNING THE SERBIAN LEADERSHIP IS FLAWED BECAUSE IT IGNORES RECENT CROATIANSERBIAN HISTORY IN 1989 THE CURRENT CROATIAN LEADER TUDJMAN PROMPTLY FIRED THE SERBS IN HIS GOVERNMENT PROCEEDED TO NAME A STREET IN HONOR OF HIS FORMER CROATIANNAZI USTASHA COHORT AND WROTE A DENIAL OF THE SERBIAN HOLOCAUST NOT SURPRISINGLY THIS SLEDGEHAMMER IGNITED THE FEARS OF THE SERBIANS CONSIDERING THAT MORE THAN 700000 SERBS WERE SLAUGHTERED IN WORLD WAR II I SEE NOTHING WRONG WITH THE SERBIANS' PROMPT SELFDEFENSE WHEN THE WORLD AGAIN REMAINED IMPOTENT UNFORTUNATELY VERY FEW IN THIS COUNTRY KNOW OR EVEN CARE ABOUT THE REASONS FOR THE CARNAGE IN THE BALKANS THEREFORE NO POLITICIAN WILL RISK AMERICAN LIVES FOR A CONFLICT OF THIS NATURE NOT UNTIL TUDJMAN IS FORCED OUT WILL THE POSSIBILITY OF SETTLEMENT APPEAL TO THE SERBIAN LEADERSHIP OTHERWISE AN ABSOLUTE COMMITMENT TO FINAL VICTORY SHOULD BE THEIR ONLY ACCEPTABLE SOLUTION SEE RELATED LETTER LETTERS TO THE EDITOR PROGRAMMED TO SELFDESTRUCT WSJ AUG 25 1993 9308100017 YY93 MM08 9308250058 930809 REVIEW & OUTLOOK EDITORIAL ASIDES HOUSE ENFORCERS HOUSE LEADERS COULD SCARCELY MISS THE DANGER REP JIM INHOFE POSED TO THEM WITH HIS EFFORT TO END SECRET DISCHARGE PETITIONS DESCRIBED IN OUR EDITORIAL LAST WEEK WHY MAKING PUBLIC THE NOWSECRET LIST OF MEMBERS CALLING FOR FLOOR VOTES ON BILLS HELD BY THE RULES COMMITTEE WOULD LET CONSTITUENTS CHECK UP ON MEMBERS LEADERS COULDN'T BOTTLE UP POPULAR BILLS ON FRIDAY REP INHOFE HAD 208 OF THE 218 SIGNATURES NEEDED ON A DISCHARGE PETITION FOR HIS OWN PROPOSAL TO END THIS HYPOCRISY THEN CSPAN VIEWERS SAW HOUSE COMMITTEE CHAIRMEN JOE MOAKLEY AND JOHN DINGELL PARK THEMSELVES NEAR THE DESK WHERE THE PETITION IS KEPT WHERE THEY PERSUADED SEVERAL MEMBERS TO REMOVE THEIR NAMES WE STILL PLAN TO PUBLISH THE NAMES OF THOSE MEMBERS WHO FAVOR SECRECY OVER OPEN GOVERNMENT AND MAYBE CONSTITUENTS CAN DO A LITTLE PERSUADING OF THEIR OWN SEE RELATED LETTER LETTERS TO THE EDITOR WHY MAKE IT EASIER FOR SPECIAL INTERESTS WSJ AUG 25 1993 9308090050 YY93 MM08 9308250057 930825 MARKETING & MEDIA DELL REVIVES DIAL PRESS IMPRINT NEW YORK DELL PUBLISHING SAID IT IS REVIVING ITS INACTIVE DIAL PRESS IMPRINT WHOSE AUTHORS INCLUDED JAMES BALDWIN AND THOMAS BERGER WITH THE FIRST TITLES TO BE PUBLISHED BY EARLY 1995 A UNIT OF THE GERMAN COMMUNICATIONS COMPANY BERTELSMANN AG DELL NAMED SUSAN KAMIL 43 YEARS OLD EDITORIAL DIRECTOR OF DIAL PRESS AND EXECUTIVE EDITOR OF DELACORTE PRESS THE COMPANY'S OTHER HARDCOVER LINE MS KAMIL WAS AN EDITOR AT TURTLE BAY BOOKS A FORMER RANDOM HOUSE INC IMPRINT DIAL WHICH BEGAN PUBLISHING IN THE LATE 1930S BUT WAS DISCONTINUED A LITTLE MORE THAN 40 YEARS LATER WILL PUBLISH A SMALL FOCUSED LIST OF FICTION AND NONFICTION THAT DELL BELIEVES SHOULD HAVE GREAT CRITICAL APPEAL THE COMPANY SAID 9308250056 930825 SEC WEIGHS OPTIONS TO REGULATE TRADING OF MUNICIPAL BONDS SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION IS EYEING SEVERAL OPTIONS TO BEEF UP REGULATION OF THE MUNICIPAL BOND MARKET POSSIBILITIES INCLUDE A REQUEST TO CONGRESS FOR A SPECIFIC GRANT OF AUTHORITY OVER MUNICIPAL BONDS AS WELL AS DISCLOSURE STANDARDS FOR SECONDARY MARKET TRANSACTIONS ACCORDING TO SEC COMMISSIONER RICHARD ROBERTS MUNICIPALS TRADITIONALLY HAVEN'T BEEN SUBJECT TO CORPORATESTYLE SECURITIES REGULATION BUT A SPECIFIC GRANT OF AUTHORITY BY CONGRESS WOULD CLARIFY THE SEC'S RESPONSIBILITIES FOR OVERSEEING THESE SECURITIES AND OFFER ADDITIONAL AUTHORITY FOR THE AGENCY TO ISSUE RULES IN THIS AREA MR ROBERTS SAID IN A SPEECH TO STATE FINANCE OFFICIALS ANOTHER APPROACH WOULD BE FOR THE COMMISSION TO RECOMMEND THAT DIFFERENT TYPES OF MUNICIPAL ISSUES BE SUBJECT TO DIFFERENT SECONDARY MARKET DISCLOSURE STANDARDS THE SEC OFFICIAL SAID MR ROBERTS SAID HE'S PERSONALLY LEANING TOWARD A MANDATORY APPROACH TO SECONDARY MARKET DISCLOSURE STANDARDS IT APPEARS TO ME THAT MUNICIPAL ISSUERS EXCEPT POSSIBLY IN THE CASE OF ISSUES LESS THAN 1 MILLION AND IN THE CASE OF STATE GENERAL OBLIGATION ISSUES SHOULD BE SUBJECT TO MANDATORY MINIMUM SECONDARY MARKET DISCLOSURE STANDARDS HE SAID MR ROBERTS SAID HIS PATIENCE WITH VOLUNTARY DISCLOSURE EFFORTS IN THE MUNICIPAL MARKET IS GROWING INCREASINGLY THIN AND ADDED THAT CONGRESS ALSO APPEARS IMPATIENT WITH THE VOLUNTARY APPROACH HOUSE HEARINGS ARE EXPECTED NEXT MONTH ON THE ADEQUACY OF REGULATION OF THE MUNICIPAL BOND MARKET 9308250055 930825 MARKETING & MEDIA ADVERTISING PHILIP MORRIS AD ABOUT PRICE CUTS IS CONSIDERED RISKY BY STRATEGISTS BY KEVIN GOLDMAN THE ESCALATING TOBACCO PRICE WARS HAVE COME TO THIS A NEW AD FROM PHILIP MORRIS COS PICTURES A PACK OF MARLBOROS PERSONIFIED BY THE RUGGED MARLBORO MAN NEXT TO A PACK OF VIRGINIA SLIMS EXEMPLIFIED BY THE LIBERATED SMOKINGINPUBLIC WOMAN HAILED WITH THE SLOGAN YOU'VE COME A LONG WAY BABY PHILIP MORRIS PLACED FULLPAGE ADS IN MAJOR MARKET NEWSPAPERS ON MONDAY TO DISPLAY SIDE BY SIDE PACKS OF MARLBORO VIRGINIA SLIMS AND ITS THREE OTHER PREMIUMBRAND CIGARETTES AND BLARE THE NOTSOSUBTLE MESSAGE PREMIUM QUALITY NEW LOW PRICE IT CONTINUES WE RECOGNIZE THAT TODAY CONSUMERS ARE LOOKING FOR GREATER VALUE IN EVERYTHING THEY BUY SO PHILIP MORRIS USA HAS MADE IT EASIER FOR SMOKERS TO ENJOY EVEN BETTER VALUE IN OUR PREMIUM QUALITY BRANDS THE AD IS THE FIRST TO HIGHLIGHT THE 40CENT PRICE CUT IN THE MAJOR BRANDS SINCE PHILIP MORRIS SET OFF THE PRICE WARS BY ANNOUNCING THE PRICE CUT LAST MAY IT STANDS IN STARK CONTRAST TO THE COY STRATEGY THE MARLBORO MAKER FIRST ADOPTED WHEN IT SET WHAT WAS FIRST SAID TO BE ONLY A TEMPORARY PROMOTION AT THE TIME THE COMPANY SAID IT WOULDN'T USE ANY ADVERTISING TO SPECIFICALLY ADDRESS THE NEW BREAK IN PRICING CHOOSING INSTEAD TO PUT THE WORD OUT AT RETAIL OUTLETS WITH DISPLAYS AND NEW REDANDWHITE AWNINGS THE NEW PRINT EFFORT PRODUCED BY LEO BURNETT CHICAGO IS A BAREKNUCKLE DEPARTURE FROM THE SLICK PRINT CAMPAIGNS FOR SUCH BRANDS AS BENSON & HEDGES WHICH FEATURE A SHINY POLISHED BLACK SNAKE AND THE BEAUTIFULLY PHOTOGRAPHED NIGHTTIME DESERT SHOTS FOR MARLBORO THERE IS NO COLOR NO ICONS NO ZIPPY SLOGAN JUST A SINGULAR STRAIGHTFORWARD MESSAGE OF LOWER PRICES MOREOVER IT PLACES ALL PHILIP MORRIS BRANDS ON THE SAME PLANE A MANEUVER THAT SOME MARKETING STRATEGISTS SAY IS RISKY THIS DOESN'T ADD ANY EQUITY TO THE INDIVIDUAL BRAND SAYS CHARLES BRYMER PRESIDENT OF INTERBRAND WHICH ASSESSES BRAND VALUE DOES THIS MEAN ALL CIGARETTES HAVE THE SAME IMAGE I DON'T THINK YOU'D FIND ANHEUSERBUSCH LUMPING BUDWEISER BUSCH AND MICHELOB TOGETHER IN A SINGLE AD ESPOUSING 189 FOR A SIXPACK IT CHEAPENS THE BRAND MR BRYMER SAYS THE AD DOES LITTLE TO DIFFERENTIATE THE BRANDS INCLUDING PARLIAMENT AND MERIT AND THAT AFTER ALL IS THE POINT OF ADVERTISING THE CRITICISM STINGS PHILIP MORRIS FOR ONE THING SAYS A SPOKESWOMAN THE FULLPAGE AD ISN'T BRAND ADVERTISING AT ALLIT'S AN EDUCATIONAL VEHICLE TO LET THE MASSES KNOW ABOUT THE LOWER PRICE FOR A PACK OF SMOKES FOR ANOTHER THE AD SHE INSISTS IS A ONESHOT DEAL THERE AREN'T ANY CURRENT PLANS TO RUN IT AGAIN BUT PHILIP MORRIS HAS REVERSED ITSELF BEFORE IN ONE RECENT PERIOD IT RAISED DISCOUNT PRICES LOWERED THEM RAISED THEM AND LOWERED THEM AGAIN ALL WITHIN THE SPAN OF A WEEK OR SO THE AD ISN'T A FULLFLEDGED CAMPAIGN SHE SAYS BUT RATHER AN ABBREVIATED MESSAGE OF THE PRICE CUT ANNOUNCEMENT THE COMPANY DECLINES TO SAY HOW MANY NEWSPAPERS CARRIED THE AD IN NEW YORK THE AD WAS PLACED IN THE THREE MAJOR TABLOIDS BUT DIDN'T APPEAR IN THE NEW YORK TIMES WILLIAM WEILBACHER PRESIDENT OF THE ADVERTISING CONSULTANT FIRM BISMARK CONSULTING SAYS SUCH PLACEMENT IS AN ATTEMPT TO CARRY THE STORY TO BLUECOLLAR PEOPLE WHO MAY NOT HAVE READ THE INITIAL ARTICLES ABOUT THE PRICE REDUCTIONS THAT WERE MOSTLY CARRIED IN THE BUSINESSNEWS SECTIONS THE TECHNIQUE OF PLACING PRODUCTS THAT ARE MADE BY THE SAME CORPORATE ENTITY SIDE BY SIDE IN ADVERTISING OFTEN IS A WASTE OF MONEY SAYS PETER FLATOW PRESIDENT OF COKNOWLEDGE A PRODUCT DEVELOPMENT COMPANY IT'S A CLASSIC CORPORATE TECHNIQUE OF THE CORPORATION TALKING TO ITSELF AND SHOWING OFF ITS LINE OF PRODUCTS BIG DEAL BUT APPARENTLY PHILIP MORRIS ISN'T MIXING PRICING WITH IMAGE DISCOUNTING WILL BE CONSPICUOUSLY OMITTED FROM THE ADS FOR THE INDIVIDUAL TOBACCO BRANDS IN ADDITION TO THE BURNETTPRODUCED AD PHILIP MORRIS ALSO SENT AN UNDISCLOSED NUMBER OF DIRECTMAIL LETTERS TO THE MAJORITY OF THE NATION'S 50 MILLION SMOKERS THE LETTER FROM WILLIAM I CAMPBELL PRESIDENT OF PHILIP MORRIS USA THE DOMESTIC TOBACCO OPERATION WAS DISPATCHED TO CONSUMERS WHOSE ADDRESSES WERE ASCERTAINED FROM PROMOTIONS IN WHICH SMOKERS HAD TO MAIL COUPONS TO PHILIP MORRIS THE LETTER ACKNOWLEDGES THE DIFFICULT ECONOMIC CONDITIONS AND SAYS THAT MARLBORO AND OTHER BRANDS SHOULD BE PRICED APPROPRIATELY PHILIP MORRIS DECLINES TO RELEASE THE ACTUAL TEXT OF THE LETTER FOR THE TIME BEING AT LEAST ALL IS QUIET ON THE AD FRONT AT PHILIP MORRIS'S RIVAL RJR NABISCO HOLDINGS THE MAKERS OF SUCH BRANDS AS WINSTON SALEM AND CAMEL CIGARETTES RJR SAYS A SPOKESWOMAN ISN'T PLANNING AN AD RESPONDING TO PHILIP MORRIS'S LATEST MISSIVE BUT SHE ADDS THINGS HAVE BEEN KNOWN TO CHANGE RATHER QUICKLY RJR NABISCO INC AND SONY CORP'S SONY OF AMERICA UNIT WILL LAUNCH A JOINT HOLIDAY PROMOTION SCHEDULED TO BEGIN NOV 1 WHICH WILL OFFER REBATES ON SOME SONY PRODUCTS WITH PROOF OF PURCHASE SEALS FROM BOTH COMPANIES THERE ARE AT LEAST 12 NABISCO COOKIE AND CRACKER PRODUCTS INVOLVED AND SONY IS INCLUDING HOME VIDEOS COMPACT DISKS AND CASSETTES VIDEO GAMES AND OTHER ELECTRONIC PRODUCTS ALTHOUGH THERE IS NO MEDIA ADVERTISING SUCH AS ON TELEVISION OR IN MAGAZINES SUPPORT FOR THE PROMOTION INVOLVES FREESTANDING INSERTS AND POINTOFPURCHASE DISPLAYS IT'S HARD TO IMAGINE ANYONE WOULD MISS THE EFFORT IN SUPERMARKETS FOR INSTANCE THERE ARE 66 MILLION NABISCO ITEMS THAT WILL FEATURE THE PROMOTION ON THE BACK PANEL 9308250054 930825 BIG FREAKS OF NATURE ARE THE SPECIALTY OF A WELSH GARDENER MR LAVERY KNOWS HIS ONIONS' ABOUT GROWING VEGETABLES THAT SET WORLD RECORDS BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL SPALDING ENGLAND IN BERNARD LAVERY'S GARDEN OF EXPLOSIVE GROWTH THERE'S A BIT OF A CRISIS HIS CARROTS ARE FALTERING THE CLUE IS A CARROT TOP THAT TO AN UNTRAINED EYE APPEARS TO BE FLOURISHING BRIGHT GREEN AND THICK AS A SHRUB IT RISES INCHES OFF THE SOIL BUT MR LAVERY IS WORRIED BIT OF A DROOP TO IT ISN'T THERE HE SAYS STROKING THE TOPS AS ONE MIGHT A SICK PET HE SAYS HE HAS WAYS TO JUICE UP STALLED CARROTS WHICH HE GROWS USING A TECHNIQUE HE CALLS HORIZONTAL GARDENING SOON THEY'LL BE CHARGING AHEAD TRAVELING FAST HE PREDICTS THERE IS LITTLE DANGER OF MR LAVERY'S HARVESTING RUNTS BY THE FIRST DAY OF SUMMER HIS CARROTS ALREADY WERE LONGER THAN A YARDSTICK HE PLANTS THEM IN FEBRUARY AND WOULD BEGIN HARVESTING IN JULY IF HE WEREN'T GOING FOR GARGANTUAN COME OCTOBER HE HOPES TO PULL AND PULL AND PULL A 17FOOTER FROM THE SOIL IN THE HISTORY OF GARDENING THE LONGEST CARROT EVER RECORDED IN THE GUINNESS BOOK OF RECORDS WAS 16FEET10INCHES LONG AS MR LAVERY WELL KNOWS HE GREW IT FOR MR LAVERY BREAKING A SINGLE WORLD RECORD SIMPLY WON'T DO IF I DON'T BREAK THREE RECORDS A YEAR IT'S A BAD YEAR HE SAYS OVER LUNCH AND LAGER AT THE ROYAL MAIL KART PUB MR LAVERY COUNTS ON SOILSTAINED FINGERS THE TROPHIES THAT HAVE MADE HIM THE WORLDCHAMPION GROWER OF BIG VEGETABLES THERE WAS THE 46POUND CELERY THE 12FOOT8INCH PARSNIP THE 124POUND CABBAGE THAT HAD TO BE HARVESTED WITH A CRANE AND OTHER JUMBOS TOO NUMEROUS TO RECALL THIS TIME OF YEAR WITH SO MUCH TO DO MY HEAD GOES TO PUTTY HE SAYS BY HIS OWN ADMISSION MR LAVERY WHO CALLS HIS VEGETABLES FREAKS IS HIMSELF THE HYBRID OF TWO SORTS OF BRITISH FANATICS THE RECORDBREAKER AND THE GARDENER AS THE HOLDER OF NINE WORLD AND SIX UK RECORDS FOR BIG VEGETABLES HE BELONGS TO THE SAME BRITISH TRADITION THAT IN 1954 GAVE BIRTH TO THE GUINNESS BOOK AND THAT HAS KEPT ON THE AIR FOR 22 YEARS A TV SHOW CALLED RECORD BREAKERS ALTHOUGH RECORDBREAKING FEVER HAS SPREAD THROUGHOUT THE WORLD ESPECIALLY IN AMERICA GUINNESS PLC OFFICIALS SAY THE BRITISH REMAIN AMONG THE MOST CREATIVE THIS YEAR GUINNESS IS AWARDING BRITONS HUNDREDS OF RECORDS FOR FEATS RANGING FROM LOUDEST SHOUT TO MOST MILK CRATES BALANCED ON THE HEAD 84 MR LAVERY'S OBSESSION WITH GARDENING IS ROOTED EVEN MORE DEEPLY IN A NATIONAL PASSION THREE OF FOUR PEOPLE HERE GROW THINGS FEW OF THEM CASUALLY FOR 25 YEARS ONE OF THE MOST WATCHED TV SHOWS HAS BEEN GARDENERS' WORLD AND BRITISH PUBLISHER DORLING KINDERSLEY SAYS THAT WHILE ITS BESTSELLING BOOK IN AMERICA IS A SEX MANUAL HERE IT'S A GARDENING ENCYCLOPEDIA IN THEIR ZEAL THE BRITISH CAN BE DOWNRIGHT RECKLESS FALLS FROM TREES POKES BY SHARP STALKS AND MISHAPS WITH TOOLS RANGING FROM HEDGETRIMMERS TO WHEELBARROWS SEND ABOUT 30000 GARDENERS A YEAR TO EMERGENCY ROOMS ACCORDING TO STUDIES BY THE ROYAL SOCIETY FOR THE PREVENTION OF ACCIDENTS AND THOUGH ABOUT 30 WIND UP DYING THE WORTHINESS OF THE CAUSE ISN'T QUESTIONED IN A LAND OF MODERATE TEMPERATURES AND RELENTLESS RAIN WITHOUT GARDENING WE'D HAVE A JUNGLE WOULDN'T WE SAYS CHRIS BATES SPOKESMAN FOR GARDENERS' WORLD TO THE MANY GARDENERS WHO PURSUE A PLATONIC IDEAL OF DESIGN AND PROPORTION MR LAVERY'S EFFORTS ARE MYSTIFYING WHO WANTS TO GROW FREAKS ASKS ROSEMARY VEREY AUTHOR OF THE ENGLISH WOMAN'S GARDEN MR LAVERY CAN THINK OF LITTLE ELSE HE STAYS UP ALL HOURS OF THE NIGHT WITH HIS VEGETABLES SAYS NORRIS MCWHIRTER A FOUNDER OF THE GUINNESS BOOK HE HAS THE ESSENTIAL QUALITY OF THE RECORD BREAKER SINGLENESS OF PURPOSE INDEED WHEN MR LAVERY A 55YEAROLD WELSHMAN FAILED TO FIND IN WALES A SUFFICIENTLY LARGE GLASSHOUSE AS THE BRITISH CALL GREENHOUSES HE LEFT BEHIND HIS HOME AND WIFE AND MOVED HERE PLANTING A TINY CARAVAN AS THEY CALL MOBILE HOMES ON THE GROUNDS OF A SPRAWLING NURSERY HE RENTED TODAY HE GETS HOME TO WALES SO SELDOM THAT LAST TIME I SHOWED UP THE DOG BIT ME HE SAYS A HUNDRED MILES AWAY HIS WIFE HILARY LAMENTS I'M A BIGVEGETABLE WIDOW AMONG BIGPRODUCE GROWERS MR LAVERY BELIEVES HE STANDS OUT EXPRESSLY BECAUSE OF HIS SEVENDAYAWEEK ATTENTION STRICTLY PLATONIC HE SAYS TO ANNE A CARROT SUE A CABBAGE LUCY A PARSNIP AND OTHER VEGETABLES WITH FEMININE NAMES FITTING BECAUSE ONLY FEMALE FLOWERS BEAR FRUIT HIS THREE GLASSHOUSES PROTECT THE LADIES NOT JUST FROM WIND AND CHILL BUT ALSO FROM THE NOISE AND NOSINESS OF TOWNSFOLK ANY KIND OF STRESS STOPS THEM GROWING HE SAYS WHEN A DOG HOWLS NEARBY MR LAVERY CASTS A WORRIED LOOK AT HIS PLANTS THAT'S AN AWFULLY STRESSEDOUT SOUNDING DOG ISN'T IT INSIDE THE GLASSHOUSES A JUNGLE OF BIG PLANTS VIRTUALLY SWALLOWS UP ITS DIMINUTIVE CARETAKER FIRST HE GOES TO HIS SLUGGISHLOOKING CARROTS WHICH HE GROWS HORIZONTALLY IN SOILFILLED GUTTERS WATERING THE DIRT JUST AHEAD OF THEIR ROOT TIPS CARROTS WILL TRAVEL TO WATER HE ADVISES HE HAS OTHER TRICKS BIG CABBAGES THE KEY IS TO SUPPORT THEM ABOVE GROUND ON WIREMESH PLATFORMS WEIGHTY CARROT PULLING A WELLDEVELOPED CARROT COMPLETELY OUT OF THE SOIL HE SLICES A HALF INCH OFF THE BOTTOM AND REPLANTS IT EXPLAINING THAT THE AMPUTATION WILL PROMPT THE PLANT TO FIRE OUT OTHER ROOTS A FIVELEGGED CARROT MAY NOT BE PRETTY BUT IT IS HEAVY A MULTILEGGED CARROT OF MR LAVERY'S RECENTLY BROKE THE UK WEIGHT RECORD AT 11 POUNDS 7 OUNCES OF COURSE HIS CREATIONS AREN'T ALWAYS WINNERS HIS ONIONS FOR EXAMPLE DON'T BREAK RECORDS BECAUSE ONIONS REQUIRE ALL YOUR CONCENTRATION AND I PREFER TO BE AN ALLAROUNDER CHEFS SAY BIG VEGETABLES ARE STALE OR OVERPOWERING BUT MR LAVERY DISAGREES THREE YEARS AGO HE DONATED HIS WORLDCHAMPION CABBAGE TO A LOCAL HOSPITAL AND THEY'RE STILL EATING IT HE SAYS BUT HOW WOULD HE KNOW ABOUT THE TASTE HIS WIFE HAS NEVER EATEN ONE OF HIS BIG VEGGIES TO BE HONEST I'M NOT A VEGETABLE LOVER SHE SAYS AND MR LAVERY HIMSELF RARELY EATS HIS PRODUCE BECAUSE BIG VEGETABLES CONTAIN THE SEEDS OF OTHER BIG VEGETABLES AND IN THAT THERE IS MONEY I COULD EAT A LOT OF ORDINARY TOMATOES FOR THE 10 QUID 15J I'D LOSE EATING ONE OF MY OWN HE SAYS THE VENERABLE THOMPSON & MORGAN SEED CATALOG HAS A SECTION ON MR LAVERY AND HIS SEEDS A PACKET OF FIVE GIANTCUCUMBER SEEDS SELLS FOR 3 GARDEN NEWS EMPLOYS HIM TO WRITE A COLUMN CALLED GIANTS A RECENT INSTALLMENT ON MELONS ELICITED 1700 LETTERS A LARGE GARDENSUPPLY COMPANY PAYS HIM TO MAKE APPEARANCES WHEN ASKED HOW MUCH MONEY HE ACTUALLY MAKES FROM THIS FANCY HE REPLIES NOT ENOUGH BUT HE ADDS THAT HE HAS WRITTEN THE WORLD'S FIRST BOOK ON BIG VEGETABLES AND IF I GET MY BOOK PUBLISHED I CAN SEE THE LIGHT FINANCIALLY AND HE IS TRYING TO RECLAIM A RECORD HE HELD EVER SO BRIEFLY IN 1989 I HAD THE WORLD'S LARGEST PUMPKIN FOR THREE DAYS HE SAYS BEFORE A LARGER CANADIAN PUMPKIN TURNED UP HE HAS A THIRSTY CONTENDER THIS YEAR NAMED PENELOPE SHE'S DRINKING FOUR GALLONS A DAY NOW HE SAYS AS HE WATERS HIS PUMPKIN'S ROOTS I SURE WISH SHE WAS DRINKING FIVE 9308250053 930825 INSIDER TRADING SPOTLIGHT FRIDAY WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9308250052 930825 TECHNOLOGY & HEALTH FORD TAPS TEXAS INSTRUMENTS TO SUPPLY SECURITY DEVICE FOR CARS SOLD IN EUROPE BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS TEXAS INSTRUMENTS INC IN A MAJOR DEPARTURE FROM ITS DEFENSE AND SEMICONDUCTOR ROOTS WAS TAPPED BY FORD MOTOR CO TO SUPPLY A NEW RADIOWAVE ANTITHEFT DEVICE FOR FORD CARS IN EUROPE THE SYSTEM FEATURES A TINY ELECTRONIC DEVICE INSIDE THE CAR KEY WHICH SENDS A RADIO SIGNAL TO AN ANTENNA AND RECEIVER IN THE STEERING COLUMN THE CAR'S IGNITION SYSTEM WILL WORK ONLY IF THE CORRECT SIGNAL IS SENT IF NOT THE RECEIVER TELLS A COMPUTER CHIP IN THE ENGINE THAT IT DIDN'T RECEIVE THE RIGHT MESSAGE AND THE CAR'S IGNITION SYSTEM IS DISABLED THE TIFORD DEAL SCHEDULED TO BE ANNOUNCED SEPT 9 AT THE FRANKFURT MOTOR SHOW IS EXPECTED TO PRODUCE REVENUE OF AS MUCH AS 25 MILLION FOR TI BY 1997 BUT THE ELECTRONICS CONCERN SAID IT IS NEGOTIATING WITH FORD AND OTHER AUTO MAKERS TO BRING THE NEW SYSTEM TO THE US OPENING UP A MARKET THAT TI SAYS COULD GROW TO AS MUCH AS 100 MILLION THE FORD CONTRACT THE LARGEST OF ITS KIND FOR TI IS PART OF AN AGGRESSIVE BUT LITTLEKNOWN PUSH AT THE DALLAS COMPANY TO VASTLY EXPAND ITS REACH IN ADDITION TO THE RADIOFREQUENCY BUSINESS TI ALSO IS EXPERIMENTING WITH NEW APPLICATIONS FOR SOLAR ENERGY AND WITH A COMPLEX MIRRORED SEMICONDUCTOR DEVICE DESIGNED TO BE USED IN PROJECTION SYSTEMS FOR HIGHDEFINITION TELEVISION THOUGH TI ACKNOWLEDGES THAT THE NEW BUSINESSES ARE A GAMBLE THEY ARE ALL MEANT AS A HEDGE AGAINST A COMPUTERCHIP BUSINESS AT THE COMPANY THAT HAS PROVED VOLATILE AND A DEFENSE OPERATION THAT IS CONTINUING TO SHRINK INDEED THE COMPANY SAID IT HAS WARNED EMPLOYEES THAT IT COULD CUT HUNDREDS OF JOBS OVER THE NEXT SEVERAL YEARS IF DEFENSE CUTBACKS CONTINUE AND IF MAJOR CONTRACTS THAT THE COMPANY EXPECTS DON'T COME THROUGH WHILE TI SAID IT COULD LOSE AS MANY AS 4800 POSITIONS IN A WORSTCASE SCENARIO IT SAID ONLY A FRACTION OF THOSE CUTBACKS WOULD LIKELY INCLUDE LAYOFFS MOST OF THE CUTS IF THEY MATERIALIZED WOULD COME FROM EARLY RETIREMENT OR FROM REASSIGNMENTS WITHIN THE COMPANY TI SAID THIS IS A MODEL OF TI'S CORPORATE VENTURE SYSTEM SAID NICK BROOKES MANAGER OF THE RADIOFREQUENCY BUSINESS BASED IN BEDFORD ENGLAND WHO KNOWS WHAT OTHER PROJECTS MIGHT BE COMING FORWARD IN ADDITION TO THE CARSECURITY MARKET TI ALSO SELLS ITS RADIOWAVE SYSTEMS TO RAIL COMPANIES SEEKING TO TRACK THE LOCATION OF THEIR CARS AND FOR HIGHWAY AUTHORITIES LOOKING TO REPLACE MANNED TOLL COLLECTION BOOTHS WITH ELECTRONIC SYSTEMS BUT TI SAID THE CARSECURITY MARKET HAS THE BEST POTENTIAL FOR ITS NEW SYSTEM THANKS TO AN AUTOTHEFT RATE OF ONE CAR EVERY 21 SECONDS IN EUROPE AND ONE EVERY 19 SECONDS IN THE US PETER WATT A FORD SPOKESMAN IN LONDON SAID THE TECHNOLOGY INITIALLY WILL BE OFFERED ON THE 500000 UNITS A YEAR THAT FORD SELLS UNDER THE ESCORT NAME IN EUROPE MR WATT SAID THE TECHNOLOGY LATER WILL LIKELY BE OFFERED ON ALL FORD VEHICLES IN EUROPE EITHER AS A STANDARD FEATURE OR AS AN OPTION PACKAGED WITH SECURITY SYSTEMS NOW AVAILABLE FROM FORD POTENTIALLY THE SYSTEM COULD HAVE APPLICATIONS ON ALL OF OUR MODELS HE SAID IN THE FIRST HALF OF 1993 FORD SOLD ABOUT 800000 VEHICLES IN GERMANY BRITAIN AND SPAIN ITS THREE BIGGEST EUROPEAN MARKETS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY TI DROPPED 1625 TO 82625 A SHARE 9308250051 930825 CREDIT RATINGS NUCOR CORP CHARLOTTE NC STANDARD & POOR'S CORP AFFIRMED THE A1PLUS COMMERCIAL PAPER AND THE DOUBLEAMINUS SENIOR DEBT RATINGS OF THIS STEELMAKER S&P SAID ABOUT 200 MILLION OF DEBT IS AFFECTED THE ACTION REMOVES THE TWO DEBT CATEGORIES FROM THE RATING SERVICE'S CREDITWATCH LIST WHERE THEY WERE PLACED WITH NEGATIVE IMPLICATIONS ON AUG 11 IN AFFIRMING THE RATINGS S&P SAID NUCOR ENJOYS THE PREMIER POSITION IN THE HIGHLY COMPETITIVE MINIMILL SEGMENT OF THE DOMESTIC STEEL INDUSTRY S&P ADDED THAT THE RISKS CREATED BY NUCOR'S AGGRESSIVE GROWTH STRATEGY ARE OFFSET BY THE COMPANY'S OPERATING EFFICIENCY AND DEMONSTRATED STARTUP EXPERTISE ALONG WITH A CONSERVATIVE MANAGEMENT FINANCIAL POLICY 9308250050 930825 BUSINESS BRIEF AMERICAN STORES CO EARNINGS ROSE 14 SALES FELL SLIGHTLY IN FISCAL 2ND PERIOD AMERICAN STORES CO CITING COST CONTROLS SAID FISCAL SECONDQUARTER EARNINGS ROSE 14 TO 585 MILLION FROM 512 MILLION A YEAR EARLIER THE SALT LAKE CITY GROCERY AND DRUGSTORE CHAIN SAID PROFIT IN THE PERIOD ENDED JULY 31 WAS 82 CENTS A SHARE COMPARED WITH YEAREARLIER EARNINGS OF 73 CENTS A SHARE REFLECTING CONTINUED WEAKNESS IN THE INDUSTRY AMERICAN STORES SAID ITS SALES OF 47 BILLION WERE ROUGHLY FLAT FROM A YEAR EARLIER WHILE SAMESTORE SALES DIPPED ABOUT 1 IN THE PERIOD THE PROFIT RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS AMERICAN STORES STOCK WAS QUOTED AT 4725 A SHARE DOWN 875 CENTS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE FOR THE FIRST HALF THE RETAILER SAID ITS PROFIT ROSE 44 TO 100 MILLION OR 141 A SHARE ON A 3 DROP IN SALES TO 936 BILLION FROM YEAREARLIER NET INCOME OF 695 MILLION OR 99 CENTS A SHARE ON REVENUE OF 963 BILLION THE COMPANY OPERATES 1714 STORES IN 27 STATES 9308250049 930825 MARKETING & MEDIA NEW QVC SHOW TO FEATURE JOAN RIVERS TALKING SHOP NEW YORK CAN WE TALK BETTER YET CAN WE SHOP THAT'S THE NAME OF A NEW ONEHOUR SYNDICATED TELEVISION TALK SHOW THAT WILL COMBINE TALK AND SHOPPING HOSTED BY COMEDIAN JOAN RIVERS QVC NETWORK INC TRIBUNE CO'S ENTERTAINMENT UNIT AND REGAL COMMUNICATIONS CORP HAVE TEAMED UP TO LAUNCH THE DAILY SERVICE BY NEXT JANUARY TO TV STATIONS ACROSS THE COUNTRY HONING THE HAWKING ABILITIES SHE PERFECTED ON QVC NETWORK MS RIVERS WILL INTERVIEW CELEBRITIES PERSONALITIES PROFESSIONALS AUTHORS AND EVERYDAY PEOPLE WHO WILL PLUG THE SALE OF PRODUCTS ON THE AIR VIEWERS CAN ORDER FROM OPERATORS USING A TOLLFREE NUMBER WE HAVE THE BABE RUTH' OF HOME SHOPPING WITH JOAN RIVERS SAID ARTHUR L TOLL CHAIRMAN AND CHIEF EXECUTIVE OF REGAL COMMUNICATIONS AN INFOMERCIAL PRODUCER AND DISTRIBUTOR THAT OWNS JOAN RIVERS PRODUCTS SUBSIDIARY QVC SALES FOR THE PAST THREE YEARS OF THE JOAN RIVERS CLASSICS COLLECTION A LINE OF JEWELRY ARE NOW APPROACHING 50 MILLION 9308250048 930825 CLINTON'S NAIVETE ON NORTH KOREA COULD BE DEADLY BY LARRY DIRITA AT A NEWS CONFERENCE YESTERDAY IN SEOUL A STUNNING ANNOUNCEMENT WAS MADE BY A NORTH KOREAN DEFECTOR WHO WORKED IN THAT COUNTRY'S DEFENSE MINISTRY FOR FIVE YEARS PYONGYANG HAS FINISHED WORK ON TWO OF FOUR MISSILE BASES THAT THE DEFECTOR SAYS WILL BE USED TO TARGET AMERICAN MILITARY INSTALLATIONS IN GUAM AND JAPAN IN LIGHT OF OTHER RECENT ACTIONS BY NORTH KOREA THIS DEVELOPMENT DOES NOT COME AS A TOTAL SURPRISE BUT IT DOES SERVE AS A REMINDER THAT THE CLINTON ADMINISTRATION'S WEAKKNEED POLICY TOWARD THE COMMUNIST GOVERNMENT IS NAIVE AND UNLESS ALTERED COULD ALLOW NORTH KOREA TO SATISFY ITS COLD WAR OBJECTIVES WHILE THE ADMINISTRATION HAS BEEN TRANSFIXED BY EVENTS IN THE FORMER YUGOSLAVIA PRESIDENT CLINTON SEEMS PREPARED TO LET AN AVOWEDLY HOSTILE REGIME DEVELOP AN OFFENSIVE NUCLEAR CAPABILITY THAT WOULD DESTROY THE DELICATE BALANCE OF POWER IN THE EAST ASIA THE CONFLICT STEMS FROM AN ANNOUNCEMENT MADE MARCH 12 BY THE NORTH KOREAN GOVERNMENT THAT IT INTENDED TO WITHDRAW FROM THE NUCLEAR NONPROLIFERATION TREATY IN ORDER TO PREVENT INTERNATIONAL INSPECTION OF ITS NUCLEAR WEAPONS PROGRAM IN RESPONSE MR CLINTON OFFERED TO CUT A DEAL IF NORTH KOREA AGREED TO HONOR THE TREATY THE ADMINISTRATION PROMISED TO 1 CANCEL THE ANNUAL USSOUTH KOREA JOINT MILITARY EXERCISES 2 NEVER USE NUCLEAR ARMS AGAINST NORTH KOREA AND 3 SUPPORT INTERNATIONAL INSPECTIONS OF NUCLEAR FACILITIES IN SOUTH KOREA ACCEPTING NONE OF THE OFFERS BUT HOPING TO BUY MORE TIME NORTH KOREA SUSPENDED ITS DECISION TO WITHDRAW A DAY BEFORE IT WAS TO GO INTO EFFECT PYONGYANG HAS SUBSEQUENTLY AGREED TO BEGIN FURTHER CONSULTATIONS WITH THE INTERNATIONAL ATOMIC ENERGY AGENCY EARLY RESOLUTION IS NOWHERE IN SIGHT EVEN THOUGH THE CLINTON ADMINISTRATION HAS CALLED THE EMBARRASSING STALEMATE A STEP IN THE RIGHT DIRECTION MEANWHILE NORTH KOREA CONTINUES TO QUIETLY DEVELOP ITS NUCLEAR MISSILE PROGRAM JAPAN IS ONE OF MANY COUNTRIES THAT HAS EXPRESSED CONCERN ABOUT THE NUCLEAR THREAT POSED BY NORTH KOREA TOKYO HAS WARNED THAT ITS OWN CONTINUED SUPPORT OF THE NUCLEAR NONPROLIFERATION TREATY CANNOT BE GUARANTEED IMPLYING IT MAY DEVELOP ITS OWN NUCLEAR CAPABILITY THE CIA ESTIMATES THAT NORTH KOREA MAY ALREADY HAVE PRODUCED ENOUGH PLUTONIUM TO DEVELOP A NUCLEAR BOMB AND ITS DIRECTOR JAMES WOOLSEY HAS FURTHER CONFIRMED THAT NORTH KOREA HAS TESTED A BALLISTIC MISSILE CAPABLE OF REACHING JAPAN PYONGYANG IS APPARENTLY WILLING TO NEGOTIATE ITS THREATENED WITHDRAWAL FROM THE NUCLEAR NONPROLIFERATION TREATY BUT ITS ACTIONS SPEAK LOUDER THAN ITS WORDS IN A RECENT POLICY PAPER EXPRESSING CAUTIOUS OPTIMISM ABOUT THE NORTH KOREASOUTH KOREA DIALOGUE THE SOUTH KOREAN MINISTRY OF DEFENSE OUTLINED THE MILITARY BUILDUP THAT HAS BEEN TAKING PLACE IN THE NORTH SINCE LATE 1991 IN NEARLY EVERY CATEGORY NORTH KOREAN FORCE LEVELS ARE ON THE RISE THERE ARE NOW MORE TROOPS MORE THAN ONE MILLION TANKS 3700 ARTILLERY PIECES 9800 AND TACTICAL MISSILES 370 POISED TO STRIKE THE SOUTH THAN WHEN THE JOINT TALKS BEGAN AT THE SAME TIME A LEADERSHIP SUCCESSION IS UNFOLDING IN THE NORTH IN A PROCESS THAT BEGAN IN 1973 GREAT LEADER KIM IL SUNG IS GRADUALLY CEDING POWER TO HIS SON DEAR LEADER KIM JONG IL THE YOUNGER KIM WITH NO MILITARY EXPERIENCE AND NO NATURAL CONSTITUENCY WITHIN THE ARMED FORCES HAS BEEN COURTING HIS OFFICERS WITH HIGHVISIBILITY PARTICIPATION IN MILITARY CEREMONIES AND AWARDS PRESENTATIONS THE MILITARY BUILDUP HAS TAKEN PLACE SINCE HE ASSUMED SUPREME COMMAND OF THE ARMED FORCES IN DECEMBER 1991 AND IT SEEMS LIKELY THAT THE INITIAL DECISION TO WITHDRAW FROM THE NUCLEAR NONPROLIFERATION TREATY WAS MADE BY KIM JONG IL WITH AN EYE TOWARD HIS RESTIVE OFFICER CORPS THE JUNIOR KIM CAN ONLY FEEL EMBOLDENED BY WHAT HIS BELLIGERENCE HAS PRODUCED 1 ADDITIONAL TIME TO CONTINUE BUILDING A NUCLEAR WEAPON 2 THE POSSIBLE END TO TEAM SPIRIT THE THINLY VEILED USSOUTH KOREA PREPARATION FOR WAR WITH THE NORTH AND 3 DIRECT DIALOGUE WITH THE GLOBAL SUPERPOWER GREATLY ENHANCING NORTH KOREA'S WORLDWIDE PRESTIGE PRESIDENT CLINTON WILL NEED MORE THAN WORDS TO RESOLVE THIS CRISIS HE MUST MAKE HIS OBJECTIVES CLEAR AND BACK THEM UP WITH THE PROMISE OF CREDIBLE DIPLOMATIC AND MILITARY ACTION RATHER THAN TRYING TO APPEASE ONE OF THE LAST REMAINING STALINIST DICTATORSHIPS IN THE WORLD MR CLINTON SHOULD SPECIFY THE DATE BY WHICH NORTH KOREA MUST OPEN ITS SUSPECT FACILITIES TO INTERNATIONAL INSPECTION IF IT FAILS TO DO SO HE SHOULD SEEK UN ECONOMIC SANCTIONS WITH AN ESTABLISHED DEADLINE AFTER THAT MILITARY MEASURES MUST BE CONSIDERED WHILE IT'S TOO LATE TO ATTACK THE SUSPECT NUCLEAR FACILITIES THEMSELVES BECAUSE OF THE POTENTIAL FOR THE RELEASE OF RADIATION DESTROYING MILITARY HEADQUARTERS BALLISTIC MISSILE LAUNCH SITES OR COMMAND AND CONTROL FACILITIES WOULD SEND AN EQUALLY COMPELLING MESSAGE AND GIVE THE NORTH KOREAN MILITARY COMMAND PAUSE TO CONSIDER THE SAGACITY OF ITS DEAR LEADER ABOVE ALL USSOUTH KOREA JOINT MILITARY EXERCISES MUST NOT BE SUSPENDED UNDER THE CIRCUMSTANCES SUCH A CONCESSION BY THE US WOULD ONLY BE PERCEIVED AS WEAKNESS FURTHER EMBOLDENING OUR ADVERSARIES AND DISCOURAGING OUR ALLIES IN THE REGION DURING THE PRESIDENTIAL CAMPAIGN MR CLINTON CORRECTLY IDENTIFIED THE SPREAD OF WEAPONS OF MASS DESTRUCTION AS ONE OF THE MOST DIFFICULT POSTCOLD WAR CHALLENGES WE FACE NOW HE HAS AN OPPORTUNITY TO MEET THAT CHALLENGE MR DIRITA IS DEPUTY DIRECTOR OF FOREIGN AND DEFENSE POLICY FOREIGN POLICY AT THE HERITAGE FOUNDATION IN WASHINGTON 9308250047 930825 MARKETING & MEDIA WALMART PRICING CASE ENDS IN ARKANSAS COURT CONWAY ARK WALMART STORES INC'S PREDATORY PRICING TRIAL ENDED IN A STATE CHANCERY COURT YESTERDAY BUT THE JUDGE SAID IT WILL BE AT LEAST THREE WEEKS BEFORE HE ISSUES A DECISION THE CASE INVOLVING ALLEGATIONS BY THREE LOCAL PHARMACIES THAT WALMART VIOLATED STATE LAW BY SELLING GOODS BELOW COST WITH THE INTENT OF HARMING COMPETITION WILL BE DECIDED BY JUDGE DAVID L REYNOLDS JUDGE REYNOLDS GAVE BOTH SIDES 10 DAYS TO FILE BRIEFS SUPPORTING THEIR ARGUMENTS BEFORE RULING IN THE SUIT WHICH COULD IF SUCCESSFUL SPUR A HOST OF SIMILAR CLAIMS AGAINST THE BIG RETAILER IN THE TWODAY TRIAL WALMART CONCEDED SELLING SOME ITEMS BELOW ITS COST BUT MAINTAINED IT COULDN'T HAVE INJURED COMPETITORS AND DESTROYED COMPETITION BECAUSE TAX RECORDS SHOW THAT THE THREE PHARMACIES INVOLVED ARE ALL PROFITABLE AND VIABLE BUSINESSES THE PLAINTIFFS ARGUED THAT THEY WERE HARMED BECAUSE THEY LOST THOUSANDS OF PRESCRIPTION SALES TO WALMART AFTER IT OFFERED HEAVILY USED PRESCRIPTION DRUGS AT OR BELOW ITS OWN COST 9308250046 930825 TECHNOLOGY & HEALTH SPRINT IS EXPECTED TO OFFER NEW TRANSMISSION SERVICE NEW YORK SPRINT CORP PLANS TO ANNOUNCE TODAY A NATIONWIDE LONGDISTANCE VOICE DATA AND VIDEO TRANSMISSION SERVICE FOR CORPORATIONS THAT USES A POWERFUL NEW TRAFFIC SWITCHING TECHNOLOGY CALLED ATM PEOPLE FAMILIAR WITH THE COMPANY'S PLANS SAID WHILE SPRINT THE NATION'S THIRDLARGEST LONGDISTANCE COMMUNICATIONS CARRIER ISN'T THE FIRST TO ANNOUNCE AN ATM TRANSMISSION SERVICE ITS OFFERING WOULD BE THE FIRST LARGESCALE NATIONAL SERVICE AVAILABLE TO MOST BUSINESSES THOSE CLOSE TO SPRINT'S PLANNING SAID THE COMPANY WILL OFFER ATM SERVICE FROM 300 LOCATIONS SPRINT OF WESTWOOD KAN DECLINED TO COMMENT ATM WHICH STANDS FOR ASYNCHRONOUS TRANSFER MODE AND IS NOT RELATED TO THE CONSUMER BANKING SYSTEMS WITH THE SAME ACRONYM IS A TRANSMISSION SOFTWARE AND HARDWARE TECHNOLOGY DEVISED BY THE COMPUTER AND COMMUNICATIONS INDUSTRY TO HANDLE HIGH VOLUMES OF DIGITAL INFORMATION SPRINT'S ATM NETWORK CAN PUMP INFORMATION AT THE RATE OF 45 MILLION BITS PER SECOND MANY TIMES WHAT CONVENTIONAL NETWORKS HANDLE TODAY 9308250045 930825 DELTA AIR OFFERS 50 CUTS ON SOME SHORTHAUL TRIPS DELTA AIR LINES IN A MOVE TO STRENGTHEN HUB OPERATIONS IN ATLANTA AND CINCINNATI SAID IT'S OFFERING 50 DISCOUNTS ON CERTAIN SOCALLED SHORTHAUL FLIGHTS FROM THOSE CITIES THE FARES INVOLVING 31 MARKETS PLUS THE HUBS AREN'T RESTRICTED BY MINIMUM STAYSTHUS ALLOWING ONEDAY BUSINESS TRAVEL BUT TICKETS MUST BE PURCHASED THREE DAYS IN ADVANCE AND DELTA SAID SEATING IS LIMITED THE LATEST DISCOUNT STRATEGY AIMED AT BUSINESS TRAVELERS FOLLOWS DELTA'S FALL FARE INITIATIVE WHICH LOWERED FARES AS MUCH AS 35 FOR LEISURE PASSENGERS BOTH MOVES ARE DESIGNED TO STIMULATE TRAFFIC IN A TIME OF SLUGGISH TICKET DEMAND OTHER CARRIERS COULDN'T BE REACHED FOR COMMENT AFTER DELTA'S ANNOUNCEMENT LATE YESTERDAY DELTA IS THE DOMINANT CARRIER IN ATLANTA AND CINCINNATI DELTA'S DISCOUNTS RESULT IN SUCH ROUNDTRIP FARES AS ATLANTARALEIGH/DURHAM FOR 283 AND CINCINNATICHICAGO FOR 262 DELTA SAID IT HOPES THE DISCOUNTS WILL ENTICE MOTORISTS TO FLY INSTEAD OF DRIVE 9308250044 930825 SCHOOLS FACE SUSPENSION ON STUDENTLOAN PROGRAMS WASHINGTON NEARLY 900 SCHOOLS COULD BE SUSPENDED FROM FEDERAL STUDENT LOAN PROGRAMS BECAUSE OF HIGH DEFAULT RATES THE EDUCATION DEPARTMENT SAID THE SCHOOLS COULD BE SUSPENDED FOR ONE YEAR FROM THE SUPPLEMENTAL LOANS FOR STUDENTS PROGRAM WHICH SERVES THE MOST NEEDY STUDENTS BECAUSE THEIR DEFAULT RATES WERE 30 OR HIGHER IN FISCAL 1991 ABOUT ONETHIRD COULD BE BARRED FROM THE BROADER FEDERAL FAMILY EDUCATION LOAN PROGRAM UNTIL OCTOBER 1995 BECAUSE OF DEFAULT RATES OF AT LEAST 30 IN THE PREVIOUS TWO YEARS THE SUSPENSIONS ARE PART OF THE DEPARTMENT'S EFFORT TO REDUCE STUDENT LOAN DEFAULTS WHICH COST THE FEDERAL GOVERNMENT 36 BILLION IN FISCAL 1991 BECAUSE OF THE CRACKDOWN THE DEFAULT RATE DROPPED TO 175 IN 1991 FROM 224 A YEAR EARLIER DEFAULTED LOANS WILL COST TAXPAYERS 25 BILLION THIS FISCAL YEAR SCHOOLS ARE REQUIRED TO HELP ENSURE THAT STUDENTS REPAY THEIR LOANS WHICH ARE MADE BY BANKS AND GUARANTEED BY THE GOVERNMENT SCHOOLS WITH HIGH DEFAULT RATES HAVE A CHANCE TO APPEAL THE PROPOSED SUSPENSIONS BUT MOST SCHOOLS WITH HIGH RATES WIND UP LOSING SOME GOVERNMENT MONEY LAST YEAR 834 OF 924 SCHOOLS CITED FOR HIGH DEFAULT RATES WERE SUSPENDED FROM THE SUPPLEMENTAL LOAN PROGRAM AND APPEALS ARE PENDING ON 61 9308250043 930825 YOUR MONEY MATTERS NEW TAX LAW WRINKLE HITS INVESTMENT BORROWING BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL HERE'S AN UNEXPECTED OUTCOME OF THE NEW TAX LAW SOMETIMES IT'S BETTER TO OPT FOR A 396 TAX RATE ON CAPITAL GAINS RATHER THAN THE STATED 28 LEVY THAT'S THE CASE FOR SOME AFFLUENT INDIVIDUALS WHO USE BORROWED MONEY TO FINANCE THEIR STOCK BOND AND OTHER INVESTMENTS THE NEW WRINKLE INVOLVES THE TAX DEDUCTIBILITY OF INVESTMENT INTEREST INCLUDING INTEREST ON MARGIN DEBT THAT IS USED TO PURCHASE STOCKS AND BONDS FOR AN INVESTOR'S PORTFOLIO UNDER THE OLD RULES MARGIN INTEREST COULD BE USED TO OFFSET TAXES NOT ONLY ON INVESTMENT INCOME SUCH AS INTEREST ON BONDS AND DIVIDENDS ON STOCKS BUT ON REALIZED LONGTERM CAPITAL GAINS CAPITAL GAINS ARE REALIZED FOR TAX PURPOSES WHEN AN INVESTOR SELLS SHARES OF STOCKS OR OTHER ASSETS THAT HAVE GONE UP IN PRICE THUS TURNING A PAPER GAIN INTO REAL MONEY LONGTERM GAINS ARE PROFITS ON INVESTMENTS HELD FOR MORE THAN ONE YEAR HOWEVER UNDER THE NEW RULES LONGTERM CAPITAL GAINS ONLY QUALIFY AS INVESTMENT INCOME IF THE INVESTOR VOLUNTEERS TO HAVE THEM TAXED AT THE SAME RATE AS PERSONAL INCOME THAT CAN MAKE A BIG DIFFERENCE TODAY BECAUSE THERE'S SUCH A BIG SPREAD BETWEEN THE TOP STATED TAX RATES ON PERSONAL INCOME OF 396 AND THE TAX RATE ON LONGTERM CAPITAL GAINS OF 28 IT'S GOING TO ADD ANOTHER DIMENSION TO TAX PLANNING SAYS TOM OCHSENSCHLAGER A PARTNER WITH THE ACCOUNTING FIRM GRANT THORNTON IN WASHINGTON DC THE BIG HITTERS WITH BIG PORTFOLIOS OF GROWTH STOCKS AND LOTS OF INVESTMENT DEBT WILL BE HIT THE HARDEST LIKE MANY OTHER PROVISIONS IN THE TAX LAW THE CHANGE IS RETROACTIVE TO LAST JAN 1 THE CHANGE IN EFFECT MAKES INVESTMENT INTEREST A LESS EFFECTIVE WAY TO SHELTER CAPITAL GAINS FROM TAXES THAT DOESN'T MEAN THAT INVESTORS ACTUALLY FORK OVER 396 OF THEIR MONEY TO THE TAX COLLECTOR ONLY THAT AT WORST THE INVESTMENTINTEREST DEDUCTION WON'T GO AS FAR THE BOTTOM LINE FOR INVESTORS' TAX BILLS IS NOT A 396 OR 28 TAX RATE ON CAPITAL GAINS BUT 28 OR ZERO SAYS TIM KOCHIS A SAN FRANCISCO FINANCIAL PLANNER THE CHANGE IN THE TAX LAW COMES AT A TIME WHEN MAJOR BROKERAGE FIRMS ARE EXTENDING A NEARRECORD AMOUNT OF MARGIN LOANS OR DEBT BACKED BY THE VALUE OF AN INVESTOR'S PORTFOLIO MORE THAN 49 BILLION AT THE END OF JULY ACCORDING TO THE NEW YORK STOCK EXCHANGE WHAT'S MORE THE DEDUCTION RULES ALSO APPLY TO ANY DEBT THAT IS USED TO FINANCE INVESTMENTS INCLUDING BORROWINGS FOR REAL ESTATE ARTWORK OR GOLD COINS OF COURSE CONSERVATIVE YIELDORIENTED INVESTORS WHO HAVE ENOUGH DIVIDEND AND INTEREST INCOME TO EXHAUST THE INTEREST DEDUCTION WOULDN'T BE TOUCHED BY THE CHANGE IN THE LAW NOR WILL IT MAKE MUCH DIFFERENCE TO INVESTORS IN THE 28 OR 31 TAX BRACKETS ALTHOUGH TAXEXEMPT SECURITIES MAY BE MORE POPULAR AS A RESULT OF HIGHER TAX RATES THOSE INVESTMENTS WON'T BE AFFECTED BY THE CHANGE BECAUSE INTEREST ON DEBT USED TO BUY TAXFREE INVESTMENTS ISN'T DEDUCTIBLE AT ALL BY CONTRAST AGGRESSIVE RISKTAKERS WHO LEVERAGE THEIR PORTFOLIOS AND MAKE BIG BETS ON RISING STOCK PRICES WOULD BE THE MOST AFFECTED BY THIS TAX DILEMMA THE CHANGE ALSO COULD CREATE COMPLICATIONS FOR UPPERBRACKET INVESTORS WHO PAY LARGE AMOUNTS OF INVESTMENT INTEREST BUT WHOSE HOLDINGS CONSIST OF SMALL STOCKS GROWTH STOCKS AND OTHER INVESTMENTS THAT TEND TO GENERATE THEIR RETURNS THROUGH CAPITAL GAINS RATHER THAN DIVIDEND INCOME THOSE INVESTORS FACE THE POTENTIALLY DIFFICULT CHOICE OF EITHER PAYING THEIR CAPITALGAINS TAXES AT THE PREFERENTIAL 28 RATE AND FORGOING THE DEDUCTION FOR NOW OR GIVING UP SOME OF THE VALUE OF THEIR DEDUCTION IN ORDER TO QUALIFY FOR IT FORTUNATELY IT ISN'T AN ALL OR NOTHING CHOICE INVESTORS MAY ELECT TO WRITE OFF A PORTION OF THEIR GAINS UNDER THE MORE RESTRICTIVE TERMS IN A GIVEN YEAR OR NONE AT ALL ANY PORTION OF THE INVESTMENTINTEREST DEDUCTION THAT ISN'T USED CAN BE CARRIED FORWARD FOR USE IN FUTURE YEARS WHAT'S THE BEST STRATEGY THERE'S NO EASY ANSWER FINANCIAL ADVISERS SAY THAT MANY INVESTORS WOULD DO WELL TO OPT FOR THE HIGHER RATE IN ORDER TO TAKE ADVANTAGE OF THE DEDUCTION RATHER THAN DEFER IT INDEFINITELY BUT INVESTORS WHO PLAN TO BUY INCOMEPRODUCING STOCKS OR BONDS OR WHO KNOW THEY WILL HAVE INVESTMENT INCOME IN THE NEXT YEAR OR TWO MAY WANT TO CARRY FORWARD THE DEDUCTION THE EXPERTS ADD IT'S A TIMEVALUE OF MONEY CALCULATION SAYS WILLIAM G BRENNAN A PARTNER WITH ACCOUNTANTS ERNST & YOUNG IN WASHINGTON IT'S A QUESTION OF WHAT YOU EXPECT TO EARN ON THE TAX SAVINGS AND WHEN YOU WOULD EXPECT TO HAVE THE INVESTMENT INCOME THE CALCULATIONS CAN GET COMPLICATED TAKE AN INVESTOR WITH A 50000 CAPITAL GAIN AND 50000 IN INVESTMENT INTEREST FOR EXAMPLE WHO HAS NO INVESTMENT INCOME AND NO CAPITAL LOSS TO OFFSET THE GAIN THAT INVESTOR COULD EFFECTIVELY AVOID TAX ON THE GAIN BY OPTING TO TREAT IT AS ORDINARY INCOME AND TAKING THE INTEREST DEDUCTION THE SAVINGS 14000 IN CAPITALGAINS TAXES AT 28 BUT SAY THAT INVESTOR KNOWS THERE WILL BE 50000 IN INVESTMENT INCOME THE FOLLOWING YEAR AND DECIDES TO PAY THE 14000 CAPITALGAINS TAX IN ORDER TO DEFER THE DEDUCTION CARRYING THE DEDUCTION FORWARD WOULD SAVE 19800 IN INCOME TAX AT THE 396 RATE IN THE SECOND YEAR THE NET TAX SAVINGS FOR THE TWO YEARS WOULD BE 5800 COMPARED WITH USING UP THE DEDUCTION IN THE FIRST YEAR 9308250042 930825 SIEMENS UNIT AGREES TO SETTLE FTC CHARGES OF FALSE AD CLAIMS WASHINGTON THE FEDERAL TRADE COMMISSION SAID OSRAM SYLVANIA INC AGREED TO SETTLE CHARGES THAT IT FALSELY CLAIMED ITS ENERGY SAVER LIGHT BULBS PROVIDE THE SAME AMOUNT OF LIGHT AS ORDINARY HIGHERWATTAGE BULBS THEY ARE DESIGNED TO REPLACE THE COMMISSION ALSO SAID THE DANVERS MASS COMPANY A UNIT OF SIEMENS AG EXAGGERATED THE ENERGYCOST SAVINGS THAT CONSUMERS CAN EXPECT IF THEY USE THE BULBS ACCORDING TO THE FTC PACKAGES FOR SYLVANIA'S ENERGY SAVER INCANDESCENT AND ELLIPSOIDAL REFLECTOR BULBS DISPLAY THE WATT AGE OF THE BULBS THEY ARE TO REPLACE IN LARGE BLACK NUMERALS WHILE SHOWING THE LOWER WATTAGE OF THE ENERGY SAVER BULBS IN SMALLER AND THINNER PRINT THE COMMISSION ALSO SAID THAT PACKAGES FOR 90 67 52 AND 34WATT ENERGY SAVER INCANDESCENT BULBS CLAIM THEY SAVE UP TO 15 IN ENERGY WHEN IN FACT ONLY THE 34WATT BULBS SAVE THAT MUCH ENERGY SAVINGS FROM THE OTHER BULBS AMOUNT TO 10 TO 133 ACCORDING TO THE COMMISSION UNDER A PROPOSED CONSENT AGREEMENT THAT THE COMMISSION PUT OUT FOR PUBLIC COMMENT SYLVANIA WOULD BE PROHIBITED FROM MISREPRESENTING THE RELATIVE LIGHT OUTPUT WATTAGE OR ENERGYCOST SAVINGS OF ANY BULB IT SELLS IN THE FUTURE IT COULD USE EXISTING PACKAGING FOR 120 DAYS AFTER THE AGREEMENT BECOMES FINAL THE COMPANY COULDN'T BE REACHED FOR COMMENT 9308250039 930825 REVIEW & OUTLOOK EDITORIAL DEALING WITH THE HONEST PERSON' PERIODICALLY THE GOVERNMENT THROWS A WETLANDS FELON IN JAIL ENACTS A RETROACTIVE TAX OR SINGLES OUT SOME COMPANY FOR REGULATORY HARASSMENT TO PLEASE A SCREAMING ACTIVIST GROUP AT TIMES LIKE THESE THE NATURAL QUESTION IS IS THE GOVERNMENT AN HONEST PERSON WE BORROW THE PHRASE FROM JOHN CIBINIC THE NOTED CONTRACTS AUTHORITY AT GEORGE WASHINGTON UNIVERSITY'S LAW SCHOOL WHO PLACES THIS IMPORTANT QUESTION AT THE HEART OF SOME INTERESTING CASES PERCOLATING UP FROM THE FEDERAL BENCH BECAUSE THESE LAWSUITS HAVE TO DO WITH THE SAVINGS AND LOAN DEBACLE AND COULD COST THE GOVERNMENT BILLIONS OF DOLLARS IN DAMAGES THEY MAY ACTUALLY POINT TO A HEALTHY CHANGE IN WASHINGTON'S ATMOSPHERICS WE'VE FOLLOWED IN PARTICULAR THE CASE OF GLENDALE FEDERAL BANK WHICH WAY BACK IN 1981 WAS ENTICED BY THE FEDERAL HOME LOAN BANK BOARD INTO BUYING A FAILING FLORIDA THRIFT THE LURE WAS THE PROMISE OF SUPERVISORY GOODWILL THAT COULD BE COUNTED AS CAPITAL IN RETURN UNCLE SAM WAS RELIEVED OF HAVING TO PAY OFF THE FAILING THRIFT'S DEPOSITORS THIS DEAL AND OTHERS LIKE IT WERE UNILATERALLY ABROGATED BY FIRREA THE LAW ENACTED BY CONGRESS IN 1989 TO SPANK THE GOOD REMAINING MEMBERS OF THE S&L INDUSTRY WHICH HAD MADE CONGRESS LOOK BAD VIRTUALLY OVERNIGHT GLENFED AND DOZENS OF THRIFTS THAT HAD RELIED ON THE GOVERNMENT'S OWN AGREEMENTS FOUND THEMSELVES INSOLVENT AND IN DANGER OF BEING SEIZED AND SHUT DOWN BY REGULATORS NOW THE LEGAL QUESTION HERE IS WHETHER THE GOVERNMENT'S SOVEREIGN IMMUNITY FROM LAWSUIT ALLOWS IT SIMPLY TO SLOUGH OFF THE SORT OF PROMISES IT MADE TO GLENFED TRADITIONALLY SOVEREIGN IMMUNITY HASN'T EXTENDED TO ACTS UNDERTAKEN BY GOVERNMENT AS A PARTY TO A CONTRACT BUT IN A MURKY RULING IN MAY THE APPEALS COURT FOR THE FEDERAL CIRCUIT IN WASHINGTON DC RULED THAT GLENFED AND OTHERS DON'T HAVE A CLAIM FOR DAMAGES BECAUSE THEY DIDN'T HAVE CONTRACTS AND EVEN IF THEY DID THE COURT ADDED THE SOVEREIGN ACTS DOCTRINE GIVES THE GOVERNMENT CARTE BLANCHE IN HER DISSENTING OPINION JUDGE PAULINE NEWMAN OBSERVED THAT THE BANKS AND THEIR REGULATORS WOULD HAVE BEEN SURPRISED TO HEAR THAT THEIR AGREEMENTS MEANT NOTHING THESE DOCUMENTS WERE EXPLICIT AS TO THE FINANCIAL OBLIGATIONS OF ALL PARTIES THE CONDITIONS AND MUTUAL PROMISES BY WHICH THESE COMMITMENTS INVOLVING MILLIONS OF DOLLARS WERE MADE IF THE MAJORITY'S RULING WERE TO STAND DOING BUSINESS WITH THE GOVERNMENT WOULD BECOME LITTLE MORE THAN A CRAP SHOOT BUT THE COURT CLEARLY HASN'T FINISHED ITS WORK THE GLENFED DECISION FLIES IN THE FACE OF ANOTHER DECISION BY THE SAME COURT IN JULY THIS TIME THE PLAINTIFFS WERE TWO SATELLITE COMPANIES WHO'D BEEN STIFFED BY NASA FOR SHUTTLE LAUNCHES THE COURT CONCLUDED THAT WHILE THE PRESIDENT OR CONGRESS ARE FREE TO MAKE SOVEREIGN POLICY THAT DOESN'T EXCUSE THE GOVERNMENT FROM PAYING DAMAGES WHEN IT BREAKS ITS CONTRACTUAL WORD HAVING CONFUSED EVERYBODY WITH THESE DUELING RULINGS PRESUMABLY THE FULL APPEALS COURT PANEL WILL LET US KNOW WHAT IT REALLY THINKS IT AGREED LAST WEEK THAT ALL 11 JUDGES WOULD TAKE A SECOND LOOK AT GLENFED'S CASE THE NEXT STOP IS THE SUPREME COURT WHILE ALL THIS LEGALISM HAS BEEN GOING ON GLENDALE HAS HELD UP ITS END OF THE ORIGINAL BARGAIN LAST WEEK THROUGH THE HERCULEAN EFFORTS OF CEO STEPHEN TRAFTON IT SOMEHOW RAISED 425 MILLION IN FRESH CAPITAL FROM INSTITUTIONAL INVESTORS WITH ANY LUCK TAXPAYERS ARE PROBABLY OFF THE HOOK FOR THE 25 BILLION IT WOULD COST TO SHUT GLENFED DOWN OF COURSE THIS RECAPITALIZATION ALSO DILUTES THE EXISTING SHAREHOLDERS DOWN TO POCKET CHANGE MAYBE THESE UNFORTUNATES WILL NOW TAKE TO THE LECTURE CIRCUIT ON WHAT IT'S LIKE BEING PARTNERS WITH WASHINGTON IT'S WORTH RECALLING THAT FIRREA WAS DRIVEN IN THE FIRST PLACE LARGELY BY CONGRESS'S DESIRE TO DEFLECT THE PUBLIC'S S&L FURY AWAY FROM THAT AUGUST BODY'S OWN ROLE IN THE FIASCO AND ONTO SOMEONE ELSE CONGRESS OF COURSE WAS PRESENT AT THE CREATION BEGINNING WITH FERNAND ST GERMAIN'S MIDNIGHT LEGISLATIVE EXERTIONS AND RUNNING THROUGH THE JIM WRIGHT AND KEATING FIVE SCANDALS IN PARTICULAR THE RECORD MAKES CLEAR THAT CONGRESS KNEW IT WAS SUCKERING PEOPLE WITH WHOM REGULATORS HAD MADE SOLEMN AGREEMENTS THE PRIVATE SECTOR'S STANDARD RAP ON WASHINGTON IS THAT IT'S OBLIVIOUS OR WORSE TO THE IMPACT OF ITS POLICIES IN THE REAL WORLD IF SOME BIG AWARDS IN THESE S&L CASES HELPED CONCENTRATE A FEW MINDS IT WOULDN'T BE A BAD THING 9308250038 930825 ENTERPRISE SMALL FIRMS SUE CHARGING THEFT OF IDEAS BY NIKHIL DEOGUN STAFF REPORTER OF THE WALL STREET JOURNAL MOULDINGS INC PITCHED ITS ONEANDONLY IDEA PLASTIC DESSERT MOLDS TWO YEARS AGO TO KELLOGG CO FOR A JOINT PROMOTION LAST NOVEMBER THE SMALL UTAH COMPANY ENDED UP IN FEDERAL COURT ACCUSING THE GIANT CEREAL MAKER OF APING ITS MOLDS AND SELLING THEM IN THE MASS MARKET MOULDINGS' STORY AND OTHERS LIKE IT HAVE SMALLBUSINESS OWNERS EDGY EVEN THE SMALLEST OF THEIR PRODUCT IDEAS AND INNOVATIONS THESE DAYS APPEAR VULNERABLE TO BEING COPIED MANAGEMENT CONSULTANTS CAUTION HOW EVER THAT ENTREPRENEURS OFTEN WRONGLY CRY FOUL UPON SEEING A COMPANY MARKET A PRODUCT SIMILAR TO THEIR IDEA BECAUSE A CORPORATION MAY HAVE BEEN DEVELOPING IT FOR YEARS FOR EVERY INNOVATION OUTRIGHT STOLEN FROM A SMALL BUSINESS FIVE TIMES AS MANY ARE LOST THOUGH STUPIDITY BAD LUCK OR NOT HAVING THE COMPETENCE TO PUSH THE IDEA FAR ENOUGH SAYS WENDELL E DUNN ASSOCIATE DIRECTOR OF THE SOL C SNIDER ENTREPRENEURIAL CENTER AT THE UNIVERSITY OF PENNSYLVANIA LARGE COMPANIES' FOCUS ON NICHE MARKETS IS A STEP AWAY FROM THE AMERICAN HOMERUN MENTALITY THEY LONG EMPHASIZED DR DUNN SAYS EARLIER IF YOU DIDN'T HIT A HOME RUN IT NEVER SHOWED UP ON THE BOTTOM LINE SO IT DIDN'T MATTER BUT WITH INCREASED COMPETITION COMPANIES ARE BEING FORCED TO HIT A LOT OF DOUBLES AND SINGLES THINKING IT'LL SHOW UP COLLECTIVELY ON THE BOTTOM LINE PLASTIC DESSERT MOLDS WOULD ACCOUNT FOR A SINGLE AT BEST BASED IN SALT LAKE CITY MOULDINGS WAS STARTED BY THE MOTHERDAUGHTER TEAM OF DEE AND TAMMY MCBRIDE IN 1988 ORIGINALLY THE TWO SOLD ONLY TEDDY BEAR MOLDS BUT IN RESPONSE TO WHAT THEY LATER DESCRIBED IN A LAWSUIT AS A GRASSROOTS EXPLOSION OF MOULDED SIC DESSERT ENTHUSIASTS THEY STARTED MAKING CHRISTMAS TREES SNOWMEN PUMPKINS DINOSAURS DUCKS TURTLES 21 MOLDS IN ALL THE MOLDS ADD SHAPE TO A VARIETY OF FOODS SUCH AS CHOCOLATE FUDGE AND GELATIN BUT A SURVEY OF CUSTOMERS THE MCBRIDES SAY SHOWED THAT THE PRODUCT'S MOST POPULAR USE WAS TO MAKE DESSERTS FROM PUFFEDRICE CEREALS SO IN 1991 MOULDINGS WITH ANNUAL SALES OF ABOUT 500000 APPROACHED KELLOGG WITH ANNUAL SALES OF 62 BILLION ABOUT A JOINT PROMOTION INVOLVING RICE KRISPIES THE CEREAL GIANT ACCORDING TO THE MCBRIDES RESPONDED ENTHUSIASTICALLY SO THE TWO WOMEN SENT ALONG SOME MOLD SAMPLES AND PRICE QUOTES BUT IN DECEMBER 1991 THEY SAY KELLOGG SOLICITED BIDS FROM FOUR OTHER MANUFACTURERS FOR FIVE HOLIDAY MOLDS ALL THE MCBRIDES GOT WAS A LETTER IN APRIL 1992 SAYING THE CONTRACT WAS AWARDED TO SOMEONE ELSE WE JUST WENT BANANAS SAYS TAMMY MCBRIDE WHO DESIGNS THE MOLDS THEY DIDN'T EVER GIVE US AN OPPORTUNITY TO BID OR TELL US THEY WANTED A CHEAPER PRODUCT OTHER COMPANIES BID ON OUR CONCEPT AND OUR PRODUCT BY SEPTEMBER 1992 KELLOGG HAD INTRODUCED A SIDEPANEL PROMOTION ON BOXES OF RICE KRISPIES FOR A SET OF FIVE MOLDS CALLED SHAPESTERS THE MCBRIDES SUED ACCUSING KELLOGG OF MISLEADING THEIR COMPANY DURING NEGOTIATIONS AND PUTTING IMITATIONS OUT ON THE MARKET TO COMPETE UNFAIRLY WITH MOULDINGS THE MCBRIDES WHO CLAIM TO HAVE PAID 50000 IN LEGAL FEES SAY KELLOGG'S PROMOTION ALSO HURT CHRISTMAS SALES AND CONFUSED THEIR RETAIL CUSTOMERS SOME OF WHOM ASSUMED MOULDINGS WAS SELLING ITS MOLDS TO KELLOGG AT A DISCOUNT THE SUIT ASKS FOR DAMAGES OF MORE THAN 50000 FOR LOST SALES AND ACCOUNTS AS WELL AS PUNITIVE DAMAGES KELLOGG WON'T COMMENT ON THE SUIT BUT HAS DENIED THE ALLEGATIONS OF UNFAIR COMPETITION IN COURT IT HAS COUNTERSUED ACCUSING MOULDINGS OF INFRINGING ON THE RICE KRISPIES TRADEMARK IN RECIPES DISTRIBUTED TO CUSTOMERS IN A PRETRIAL DECISION IN APRIL A FEDERAL JUDGE IN UTAH FOUND KELLOGG HADN'T INTENTIONALLY COPIED MOULDINGS' MOLDS BUT SAID KELLOGG'S MOLDS WERE CLEARLY INFLUENCED BY MOULDINGS AND THE MOLDS ON THE SIDE PANEL OF THE CEREAL BOX LOOKED STRIKINGLY SIMILAR TO MOULDINGS' MOLDS JUDGE DEE BENSON HAS ENJOINED KELLOGG FROM ANY ADDITIONAL SHAPESTERS PROMOTIONS UNTIL A TRIAL IN OCTOBER TO BE SURE MOST CORPORATIONS ARE CAREFUL NOT TO GIVE EVEN THE APPEARANCE OF POACHING CONSULTANTS SAY STILL MARKETING CONSULTANTS AND LAWYERS FREQUENTLY ADVISE ENTREPRENEURS TO PATENT THEIR INNOVATIONS OR GET CONFIDENTIALITY AGREEMENTS TO PROTECT THEMSELVES WHEN SETTING UP JOINT VENTURES WITH LARGE COMPANIES BUT EVEN THE PATENT ROUTE HAS ITS PIT FALLS THE PRINCIPALS OF BOLEN PACKAGING CORP BASED IN CLOSTER NJ FILED A PATENT APPLICATION IN 1988 FOR A BOTTLE CAP THAT FEATURED A FLIP TOP THE COMPANY SAYS IT HAD BEEN NEGOTIATING WITH UNILEVER GROUP'S THOMAS J LIPTON CO FOR THE CAP TO BE USED WITH WISHBONE SALAD DRESSING BUT WHEN TALKS ON ROYALTIES FELL THROUGH PRESIDENT THOMAS R BOLEN SAYS LIPTON ITSELF FILED A PATENT APPLICATION FOR AN IDENTICAL CAP BOLEN WAS AWARDED THE PATENT IN 1991 AND TURNED AROUND AND SUED LIPTON IN FEDERAL COURT IN NEW JERSEY FORINTERFERING WITH ITS PATENT APPLICATION AND FOR PATENT INFRINGEMENT MR BOLEN SAYS HE WAS STUNNED BECAUSE TOGETHER WITH HIS FATHER HE HAD DONE BUSINESS WITH LIPTON IN THE PAST AND NEVER HAD ANY PROBLEMS IT'S A DOGEATDOG WORLD OUT THERE NOW HE SAYS IN A COUNTERSUIT LIPTON CLAIMS THAT THE BOLEN PATENT IS INVALID BECAUS THIRD PARTY ACCORDING TO LIPTON ACTUALLY IN VENTED THE FLIPTOP BOTTLE CAP LIPTON SAYS IT ABANDONED ITS OWN PATENT APPLICATION AFTER BOLEN OFFERED TO SELL THE CAP TO ANOTHER COMPANY THE TWO PARTIES ARE CURRENTLY IN COURTORDERED SETTLEMENT NEGOTIATIONS JOINT VENTURES WITH LARGE CORPORATIONS ESPECIALLY THOSE THAT FOCUS ON AN EASILY DUPLICATED PRODUCT CAN BE HIGHLY UNSTABLE CONSULTANTS WARN ATLANTABASED SPORTS STEP INC FOR INSTANCE TEAMED UP WITH REEBOK INTERNATIONAL SYSTEM LTD IN 1990 TO PROMOTE THE STEP AEROBICS CRAZE REEBOK'S NAME WAS PUT ON PLASTIC PLAT FORMS THAT SPORTS STEP SOLD TO HEALTH CLUBS THE DEAL SOURED TWO YEARS LATER HOWEVER WHEN REEBOK DECIDED TO SELL ITS OWN STEP OR PLATFORM FOR HOME USE SPORTS STEP NOW STEP CO SUED REEBOK IN FEDERAL COURT IN ATLANTA SEEKING TO REMOVE ITSELF FROM THE AGREEMENT WITH REEBOK AND ASKING THAT REEBOK BE STOPPED FROM SELLING ITS OWN STEP SPORTS STEP WITH 30 MILLION IN SALES LAST YEAR ALSO STOPPED PUTTING REEBOK'S NAME ON ITS STEP REEBOK BASED IN STOUGHTON MASS PROMPTLY COUNTERSUED ASKING FOR ITS NAME TO BE PUT BACK ON THE PRODUCT THE TWO PARTIES HAVE NOW SETTLED THE SUITS STEP NO LONGER MUST PUT THE REEBOK NAME ON ITS PRODUCT BUT MUST PAY REEBOK 125 FOR EVERY STEP WITHOUT THE REEBOK NAME SOLD TO HEALTH CLUBS AMONG OTHER CONDITIONS STEPHEN M GOODMAN A PHILADELPHIA LAWYER SPECIALIZING IN STARTUP COMPANIES AND JOINT VENTURES ADVISES HIS CLIENTS TO SIGN NONDISCLOSURE STATEMENTS WHEN DEALING WITH CORPORATIONS THESE AGREEMENTS TYPICALLY PREVENT A COMPANY FROM EVEN DISCUSSING THE PRODUCT IDEA WITH AN OTHER COMPANY BUT GETTING A BIG COMPANY TO SIGN SUCH AN AGREEMENT CAN BE TRICKY IT'S HARD BECAUSE YOU'RE TRYING TO SELL THEM SAYS DAVID E GUMPERT A MARKETING COMMUNICATIONS CONSULTANT IN NEEDHAM MASS YOU DON'T GET OFF TO A GOOD START IF COMPANIES REFUSE TO SIGN NONDISCLOSURE STATEMENTS MR GOODMAN ADVISES CHECKING THE TRACK RECORD OF A CORPORATION'S VENTURES TO SEE IF IT RELIES ON SMALL FIRMS FOR INNOVATIONS PHARMACEUTICAL COMPANIES FOR INSTANCE INCLUDING WARNERLAMBERT CO SCHERINGPLOUGH CORP AND IMMUNEX CORP REGULARLY TEAM UP WITH SMALL ENTREPRENEURS CERTAIN COMPANIES CAN'T AFFORD TO TARNISH THEIR REPUTATION MR GOODMAN SAYS THEY WOULD CUT OFF A POTENTIAL LIFELINE IF IT EVER BECAME APPARENT THAT YOU COULDN'T TRUST THEM WITH IDEAS 9308250037 930825 OTC FOCUS NASDAQ INDEX CLOSES AT 73514 RECORD AS STRENGTH IN BONDS PROLONGS RALLY BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MORE NASDAQ INDEX RECORDS FELL BY THE WAYSIDE AS STRONG GOVERNMENT SECURITIES KEPT THE OVERTHECOUNTER STOCK MARKET RALLY ROLLING ALONG BONDS JUST KEEP GOING SAID WILLIAM HANEMAN SENIOR VICE PRESIDENT OF NASDAQ OVERTHECOUNTER TRADING AT LEGG MASON WOOD WALKER IT'S INCREDIBLE THE NASDAQ COMPOSITE INDEX SHOT 428 POINTS OR 059 HIGHER TO FINISH AT 73514 ABOVE ITS PREVIOUS RECORD OF 73483 ADVANCING ISSUES TOPPED DECLINERS 1568 TO 1232 TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME ROSE TO 234500400 SHARES FROM 186514200 SHARES MONDAY ON THE BIG BOARD THE DOW JONES INDUSTRIAL AVERAGE REACHED A HIGH OF 363896 UP 3298 POINTS OR 091 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX BROKE ITS HIGH OF 25325 RISING 224 POINTS OR 089 TO 25515 THE STANDARD & POOR'S 500STOCK INDEX ALSO CLIMBED TO A RECORD THE LONG BOND OVERCAME EARLY WEAKNESS TO JUMP NEARLY 3/8 POINT BY THE CLOSE FOLLOWING A SUCCESSFUL TWOYEAR NOTE AUCTION ITS YIELD FELL TO 619 WE HAD A BIG RALLY LAST WEEK AND WITH FRIDAY'S DOUBLE WITCHING' PEOPLE EXPECTED A SELLOFF YESTERDAY SAID BARRY BERMAN HEAD OF EQUITY TRADING AT ROBERT W BAIRD & CO BUT SELLING DRIED UP LATE IN THE AFTERNOON AND THERE WAS NO BIG PROFITTAKING MR BERMAN SAID THIS SET THE STAGE ALONG WITH STRONG OVERSEAS STOCK RALLIES FOR AN UPSWING ON THE NASDAQ LATE BOND STRENGTH PUSHED OTC PRICES EVEN HIGHER NEAR THE SESSION'S END SHARE PRICES ROSE IN LONDON AND FRANKFURT ALTHOUGH THEY FINISHED MIXED IN TOKYO THIS IS GORGEOUS SAID RALPH J ACAMPORA DIRECTOR OF TECHNICAL RESEARCH AT PRUDENTIAL SECURITIES THE MARKET'S CATCHING UP TO INTEREST RATES IT'S SOMETHING THAT'S BEEN BUILDING FOR A LONG TIME THE NASDAQ OTHER FINANCE INDEX CRACKED ITS RECORD OF 87559 TO END 269 POINTS OR 030 HIGHER AT 87661 INTEREST RATESENSITIVE ISSUES WERE MOSTLY HIGHER FIRST ALABAMA CLIMBED 1 TO 32 7/8 STATE STREET BOSTON ADDED 1 TO 34 5/8 AND FIRST AMERICAN FINANCIAL IMPROVED 1 3/4 TO 29 1/4 IN THE TECHNOLOGY GROUP SYMANTEC OF CUPERTINO CALIF GAINED 3/4 TO 15 1/2 AFTER NEEDHAM & CO RAISED ITS RATING TO BUY FROM HOLD MONDAY A CALIFORNIA JUDGE DISQUALIFIED THE SANTA CRUZ COUNTY DISTRICT ATTORNEY'S OFFICE FROM A TRADESECRETS CASE AGAINST OFFICERS OF THE SOFTWARE COMPANY AFTER DISCOVERING THAT BORLAND INTERNATIONAL HAD REIMBURSED PROSECUTORS FOR CERTAIN COSTS THE DAY'S MOST ACTIVE ISSUE NOVELL LOST 1/4 TO 19 7/8 LEHMAN BROTHERS DOWNGRADED ST JUDE MEDICAL TO NEUTRAL FROM OUTPERFORM THE ST PAUL MINN MEDICAL DEVICE DESIGNER'S SHARE PRICE DROPPED 1 7/8 TO 33 1/2 CYTOTHERAPEUTICS LEAPED 1 5/8 TO 10 7/8 THE COMPANY SAID PRELIMINARY RESULTS OF ITS PHASE I HUMAN CLINICAL STUDY OF ITS CERECRIB IMPLANT FOR SEVERE CHRONIC PAIN ARE PROMISING COMMUNICATIONS ISSUES JUMPED AFTER SINKING SOME MONDAY MCI COMMUNICATIONS OF WASHINGTON CLIMBED 1/4 TO 27 5/8 THE COMPANY SAID IT HAS BEEN SELECTED BY PRIVATELY HELD CARLSON COS AS ONE OF ITS PRIMARY TELECOMMUNICATIONS PROVIDERS UNDER A THREEYEAR MULTIMILLIONDOLLAR AGREEMENT ROPER INDUSTRIES RALLIED 5 TO 67 ON IMPROVED FISCAL THIRDQUARTER EARNINGS OF 97 CENTS A SHARE PRESPLIT IN THE YEAREARLIER PERIOD THE COMMERCE GA SPECIALTY FLUID HANDLING AND INDUSTRIAL CONTROL PRODUCTS MAKER EARNED 27 CENTS A SHARE ANALYSTS HAD EXPECTED THE COMPANY TO EARN 81 CENTS ACCLAIM ENTERTAINMENT ADVANCED 1 7/8 TO 25 3/8 THE INTERACTIVE ENTERTAINMENT SOFTWARE DEVELOPER SAID IT WILL SPEND MORE THAN 10 MILLION ON A WORLDWIDE ADVERTISING CAMPAIGN BACKING THE RELEASE OF ITS MORTAL KOMBAT VIDEO GAME NEW ISSUE SCIENTIFIC GAMES HOLDINGS SURGED CLOSING AT 18 WELL ABOVE ITS DEBUT PRICE OF 14 A SHARE LATE MONDAY THE HOLDING COMPANY FOR A LOTTERY TICKET MAKER BASED IN ALPHARETTA GA PLANS TO USE PROCEEDS FROM THE OFFERING TO REPAY A CONSTRUCTION LOAN AND A TERM LOAN 9308250036 930825 ECONOMY US CAR SALES PICKED UP IN MIDAUGUST AS AUTO MAKERS OFFERED CASH INCENTIVES BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE SELLING PACE OF NORTH AMERICANBUILT CARS AND LIGHT TRUCKS PICKED UP IN MIDAUGUST AS AUTO MAKERS USED CASH INCENTIVES TO CLEAR DEALERS' LOTS OF 1993 MODELS TO MAKE ROOM FOR NEWER MODELS THE INCENTIVES HELPED PUSH THE SEASONALLY ADJUSTED ANNUAL SELLING RATE OF NORTH AMERICANBUILT VEHICLES TO 119 MILLION CARS AND LIGHT TRUCKS IN THE LATEST 10DAY PERIOD THAT IS STRONGER THAN THE 11 MILLION RATE IN THE PREVIOUS 30DAY PERIOD AND UP SHARPLY FROM A LETHARGIC 108 MILLION PACE IN THE YEAREARLIER PERIOD IT'S A NICE REBOUND FROM EARLY AUGUST BUT POTENTIAL BUYERS REMAIN SKITTISH SAID TOM WEBB CHIEF ECONOMIST OF THE NATIONAL AUTOMOBILE DEALERS ASSOCIATION DEALER INVENTORIES ARE LEAN SO WE LOOK FOR AN ORDERLY BUT NOT A SPECTACULAR MODEL YEAR CLOSEOUT OVERALL AMERICANS BOUGHT 306193 NORTH AMERICANBUILT CARS AND LIGHT TRUCKS IN THE AUG 1120 PERIOD UP 53 FROM THE 290840 SOLD A YEAR EARLIER CAR SALES ROSE 103 WHILE TRUCK SALES DROPPED 09 TENDAY VEHICLE SALES FOR MANY IMPORTED VEHICLES WEREN'T AVAILABLE VIRTUALLY ALL BIG THREE AND JAPANESE AUTO MAKERS HAVE SWEETENED CASH INCENTIVES ON 1993 MODEL YEAR VEHICLES WHICH NOW RANGE FROM 500 TO 2500 ON CERTAIN MODELS SOME OF THE INCENTIVES ARE PAID TO DEALERS WHILE OTHERS ARE REBATES PAID TO CONSUMERS THE BIG THREE AUTO MAKERS' STOCK CLOSED HIGHER IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY GENERAL MOTORS CORP AND FORD MOTOR CO STOCK GAINED 1625 TO 4675 AND 5175 RESPECTIVELY WHILE CHRYSLER SHARES ROSE 875 CENTS TO 4225 STILL DETROIT POSTED MIXED RESULTS FORD'S TOTAL VEHICLE SALES CLIMBED 4 IN MIDAUGUST REFLECTING A 73 SURGE IN THUNDERBIRD SALES A 51 JUMP IN RANGER PICKUP SALES AND A 19 RISE IN TAURUS SALES GM'S TOTAL VEHICLE SALES DIPPED 5 LARGELY HURT BY A 121 DROP IN LIGHT TRUCK SALES SOFT SALES OF THE COMPANY'S OLDSMOBILE AND CHEVROLET MODELS WERE OFFSET BY STEADY SALES OF BUICK AND CADILLAC BRAND VEHICLES CHRYSLER'S TOTAL VEHICLE SALES SURGED 164 FOR THE PERIOD ACCORDING TO WARD'S AUTOMOTIVE REPORTS A TRADE PUBLICATION CHRYSLER DOESN'T RELEASE 10DAY SALES HONDA MOTOR CO'S INCENTIVE OFFER OF AS MUCH AS 1500 ON ITS MIDSIZE ACCORD HELPED REVIVE SALES OF THE SEDAN ACCORD SALES SURGED 25 IN THE AUG 1120 PERIOD OVERALL HONDA'S VEHICLE SALES WERE UP 142 THE JAPANESE AUTO MAKER HAS ACKNOWLEDGED THAT THE ACCORD EVEN BEFORE THE LATEST INCENTIVE HAD BEEN SELLING IN MANY CASES FOR 1500 TO 2000 LOWER THAN ITS STICKER PRICE 9308250035 930825 BUSINESS BRIEF CRAY RESEARCH IS SEEN GETTING JAPAN ORDER FOR A SUPERCOMPUTER EAGAN MINN CRAY RESEARCH INC IS EXPECTED TO ANNOUNCE THAT RAILWAY TECHNICAL RESEARCH INSTITUTE OF JAPAN A GOVERNMENTAFFILIATED ORGANIZATION WILL BUY ONE OF ITS MIDRANGE SUPERCOMPUTERS A PERSON CLOSE TO CRAY SAID ALTHOUGH THE SALE WOULD BE FOR LESS THAN 5 MILLION IT MAY BE SIGNIFICANT IN TERMS OF USJAPAN TRADE RELATIONS US TRADE OFFICIALS HAVE LONG CONTENDED THAT JAPANESE CUSTOMERS ESPECIALLY GOVERNMENT AGENCIES HAVE RESISTED BUYING US SUPERCOMPUTERS DESPITE SUPERIOR PERFORMANCE FOR PROTECTIONIST REASONS A PERSON CLOSE TO CRAY SAID THE INSTITUTE WHICH IS AFFILIATED WITH A GROUP OF SEVEN JAPANESE RAILWAY COMPANIES HAS BEEN USING A JAPANESEMADE SUPERCOMPUTER BUT HAD DECIDED TO SWITCH TO CRAY FOR BETTER PROCESSING CAPACITY A NUMBER OF JAPANESE CONCERNS HAD BEEN VYING FOR THE CONTRACT THE PERSON SAID AN OFFICIAL AT THE INSTITUTE CONFIRMED IT IS CONSIDERING A REPLACEMENT FOR ITS EXISTING NEC CORP SUPERCOMPUTER BUT DECLINED TO COMMENT FURTHER ON THE ISSUE CRAY IS ALSO BIDDING FOR SEVERAL JAPANESE GOVERNMENT CONTRACTS ALTHOUGH CRAY RESEARCH HOLDS ABOUT 40 OF JAPAN'S PRIVATE SUPERCOMPUTER MARKET IT HAS HAD FAR LESS SUCCESS CRACKING JAPAN'S PUBLIC SECTOR A MUCH MORE LUCRATIVE MARKET GOVERNMENT CONTRACTS ARE OFTEN BIG RANGING IN VALUE FROM 20 MILLION TO 50 MILLION COMPARED WITH PRIVATE SECTOR DEALS WHICH TEND TO BE 10 MILLION TO 20 MILLION A CRAY RESEARCH SPOKESMAN SAID DURING THE PAST 10 YEARS CRAY RESEARCH HAS WON ONLY FOUR OF 58 PUBLICSECTOR CONTRACTS THAT IT VIED FOR IN JAPAN EARLIER THIS YEAR US TRADE REPRESENTATIVE MICKEY KANTOR THREATENED TO IMPOSE SANCTIONS OR DUTIES ON JAPANESE IMPORTS CHARGING THAT THE JAPANESE GOVERNMENT SYSTEMATICALLY PASSES OVER US COMPANIES INCLUDING SUPERCOMPUTER MAKERS IN FAVOR OF JAPANESE COMPANIES IN AWARDING PUBLICLY FUNDED CONTRACTS 9308250034 930825 MORGAN GRENFELL APPOINTS EXECUTIVE FOR ASIAN UNIT SINGAPORE MORGAN GRENFELL GROUP PLC NAMED A SENIOR EXECUTIVE FROM ITS LONDON OFFICE TO HEAD THE MERCHANT BANK'S PROFITABLE ASIAN OPERATIONS FORMALLY REASSERTING CONTROL TWO MONTHS AFTER THE MASS RESIGNATION OF FIVE OF THE UNIT'S SIX ASIAN BOSSES COLIN BERRY THE NEW CHIEF EXECUTIVE OFFICER OF MORGAN GRENFELL ASIA HOLDINGS PTE LTD SAID HIS APPOINTMENT WILL HELP BIND ASIA INTO THE GROUP MORGAN GRENFELL ASIA'S CHAIRMAN MANAGING DIRECTOR AND THREE OTHER TOP EXECUTIVES ALL ASIAN NATIONALS QUIT IN JUNE AFTER A DISPUTE WITH THE PARENT COMPANY OVER CONTROL AND MANAGEMENT A FEW WEEKS LATER THE UNIT'S HIGHLY REGARDED HEAD OF EQUITIES RESEARCH ALSO AN ASIAN NATIONAL ADDED HIS RESIGNATION TO THE PILE THE EXODUS CAUSED A BIG STIR IN SINGAPORE WHERE THE UNIT IS BASED AND THROUGHOUT THE REGION IN AN INTERVIEW MR BERRY SAID MORGAN GRENFELL A UNIT OF DEUTSCHE BANK AG WANTS MORGAN GRENFELL ASIA TO MAKE BETTER USE OF MORGAN GRENFELL'S AND DEUTSCHE BANK'S INTERNATIONAL NETWORKS TO FOR EXAMPLE SELL ASIAN STOCKS TO US INVESTORS MR BERRY SAID MORGAN GRENFELL HAD ALREADY DECIDED BEFORE THE MASS RESIGNATIONS THAT MORGAN GRENFELL ASIA SHOULD MOVE TO INTEGRATE ITSELF MORE CLOSELY WITH THE REST OF THE GROUP THAT HAD BEEN SOMEWHAT SLOW UNDER PREVIOUS MANAGEMENT MR BERRY SAID 9308250032 930825 MARKETING BRIEF TRANS WORLD MUSIC CORP RETAILER HAD 2 MILLION LOSS FOR 2ND PERIOD STOCK SKIDS TRANS WORLD MUSIC CORP'S STOCK FELL 94 ON NEWS OF A SECONDQUARTER LOSS WHICH THE COMPANY ATTRIBUTED TO FALLING COMPARABLESTORE SALES AND THE COST OF IMPLEMENTING A NEW MERCHANDISE ORDER/INVENTORY SYSTEM IN OVERTHECOUNTER TRADING TRANS MUSIC SHARES FELL TO 1325 DOWN 1375 FOR THE QUARTER THE NEW YORKBASED RETAILER OF MUSIC AND VIDEO PRODUCTS REPORTED A NET LOSS OF 2 MILLION 21 CENTS A SHARE VS NET INCOME OF 332000 OR FOUR CENTS A SHARE A YEAR EARLIER SALES ROSE 7 TO 966 MILLION FROM 903 MILLION A YEAR EARLIER BUT COMPARABLESTORE SALES FELL 3 WHICH THE COMPANY ATTRIBUTED TO SLUGGISH SEASONAL DEMAND AND THE SLOW ECONOMY THE COMPANY OPERATES MORE THAN 600 STORES 9308250031 930825 DIVIDEND NEWS ANALYSTS INTERNATIONAL CORP ANALYSTS INTERNATIONAL CORP THE MINNEAPOLIS COMPUTER SOFTWARE SERVICES COMPANY DECLARED A 3FOR2 STOCK SPLIT PAYABLE SEPT 30 TO STOCKHOLDERS OF RECORD ON SEPT 8 THE COMPANY SAID THE SPLIT WILL BE PAID IN THE FORM OF A 50 STOCK DIVIDEND THE COMPANY ALSO SAID IT INCREASED ITS REGULAR QUARTERLY DIVIDEND ON THE NEW SHARES 20 TO 12 CENTS A SHARE PAYABLE NOV 15 TO STOCKHOLDERS OF RECORD ON OCT 29 FREDERICK W LANG THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE DIVIDEND REFLECTS THE COMPANY'S GROWTH WHILE THE STOCK SPLIT IS INTENDED TO ENHANCE LIQUIDITY AND KEEP THE STOCK PRICE IN AN ATTRACTIVE RANGE IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY ANALYSTS INTERNATIONAL CLOSED AT 35 A SHARE UP 25 CENTS 9308250030 930825 TECHNOLOGY & HEALTH BORLAND SLASHES SOME SOFTWARE PRICES BY 84 BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL BORLAND INTERNATIONAL INC FIRING A NEW SALVO IN THE WAR TO GAIN MARKET SHARE ANNOUNCED IT IS SLASHING THE PRICE OF NEW SOFTWARE SPREADSHEET PRODUCTS AS MUCH AS 84 SOME ANALYSTS SEEMED STUNNED BY THE MOVE AND EXPRESSED CONCERN THAT THE LATEST ROUND OF PRICE CUTS WOULD CRIMP ALREADYTHIN MARGINS I CAN'T SEE IT BEING WILDLY PROFITABLE SAID CHUCK STEGMAN PRINCIPAL ANALYST AT DATAQUEST INC A SAN JOSE CALIF MARKETRESEARCHING FIRM HOWEVER OFFICIALS OF BORLAND BASED IN SCOTTS VALLEY CALIF SAID THEY ANTICIPATED STRONG SALES WOULD OFFSET ANY SQUEEZE ON MARGINS AND THAT THEY BELIEVE THIS ACTION WILL PROPEL THE COMPANY INTO THE NO 2 RANKING IN SPREADSHEET MARKET SHARE CURRENTLY DATAQUEST RANKS BORLAND A DISTANT THIRD IN MARKET SHARE BEHIND LOTUS DEVELOPMENT CORP CAMBRIDGE MASS AND LEADER MICROSOFT CORP REDMOND WASH IN AN ANNOUNCEMENT YESTERDAY BORLAND SAID IT WAS CUTTING TO 4995 THE SUGGESTED RETAIL PRICE OF 9995 ON BOTH ITS NEW QUATTRO PRO 50 FOR WINDOWS AND ITS QUATTRO PRO 50 FOR DOS CURRENT OWNERS OF QUATTRO PRO CAN BY EITHER OF THOSE VERSIONS FOR 3995 FOR THE NEW QUATTRO PRO 50 WORKGROUP EDITION BORLAND HAS SLASHED THE PRICE TO 9995 AND 7995 FOR EXISTING CUSTOMERS FROM THE PREVIOUS SUGGESTED RETAIL PRICE OF 495 THE DISCOUNTS WILL BE IN EFFECT THROUGH JAN 15 IN A DIRECT ATTACK AGAINST ITS RIVALS BORLAND SAID LOTUS 123 AND EXCEL FOR WINDOWS USERS ARE ELIGIBLE FOR THE WORKGROUP DISCOUNT THERE IS ABSOLUTELY NO QUESTION THAT WE ARE TRYING TO TAKE MARKET SHARE FROM LOTUS AND MICROSOFT SAID DAVID WATKINS BORLAND'S VICE PRESIDENT PRODUCT MANAGEMENT AND PRODUCT MARKETING YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING BORLAND COMMON CLOSED AT 20125 UP 125 CENTS ON VOLUME OF ALMOST 18 MILLION SHARES DESPITE THE AGGRESSIVE PRICE CUTS RIVALS MICROSOFT AND LOTUS INDICATED THEY WOULD NOT BE RESPONDING IN KIND IT'S A DESPERATION MOVE BY A DESPERATE COMPANY SAID RICHARD ECKEL SPOKESMAN FOR LOTUS WHICH PRODUCES THE LOTUS 123 SPREADSHEET AT MICROSOFT WHICH PRODUCES EXCEL FOR WINDOWS OFFICIALS EXPRESSED DOUBT THE PRICE CUTS WOULD RESULT IN SUSTAINED GROWTH IN QUATTRO PRO SALES AT BEST THEY'LL BE ABLE TO CAUSE A BLIP SAID LEWIS LEVIN GENERAL MANAGER OF MICROSOFT'S EXCEL BUSINESS UNIT THERE ARE PEOPLE WHO WILL BE TIRE KICKERS COMPETITORS AND ANALYSTS SAID CUSTOMERS DON'T BASE ALL OF A BUYING DECISION ON PRICE OTHER IMPORTANT FACTORS INCLUDE EASE OF USE AND CONSISTENCY WITH OTHER PRODUCTS SUCH AS THE WORD PROCESSOR WHICH BOTH MICROSOFT AND LOTUS CAN PACKAGE THEMSELVES BORLAND HAS TO BUNDLE ITS SPREADSHEET WITH THE WORD PROCESSOR OF ANOTHER COMPANY WORDPERFECT CORP ANOTHER POSSIBLE DRAWBACK IN THE NEW QUATTRO PROS FOR SOME USERS IS THE FACT THAT THEY DON'T CONTAIN THE MACRO KEY READER FEATURE THAT A FEDERAL JUDGE IN BOSTON RECENTLY RULED VIOLATED LOTUS'S COPYRIGHT THE FEATURE ALLOWED QUATTRO PRO USERS TO USE MACROS CUSTOMIZED SPREADSHEET PROGRAMS DEVELOPED ON 123 TO WORK WITH QUATTRO PRO AS WELL FOR COMPANIES STANDARDIZED ON 123 MR STEGMAN SAID THIS EXCLUSION COULD DETER THEIR BUYING THE NEW QUATTRO PROS BORLAND OFFICIALS SAY THE NEW QUATTRO PROS CAN STILL READ ALL OTHER SPREADSHEETS AND THAT DATA FROM THE 123 OR EXCEL CAN SIMPLY BE TRANSFERRED ONTO THE QUATTRO PRO THE STEEP PRICE CUTS REPRESENT ONE OF THE BOLDEST GAMBLES YET FOR BORLAND'S CHIEF EXECUTIVE OFFICER PHILIPPE KAHN ESSENTIALLY HE IS BETTING THAT THE NEW FIRESALE PRICES WILL BOOST SALES TO THE POINT THAT MARGINS AREN'T HURT IN A NEWS RELEASE MR KAHN SAID BORLAND'S GOAL IS TO SELL 500000 UNITS OF QUATTRO PRO BY JAN 15 WHEN THE PRICE DISCOUNTS EXPIRE IN 1992 BY COMPARISON BORLAND SOLD ONE MILLION QUATTRO PRO UNITS DURING THE ENTIRE YEAR TO HELP ACHIEVE THESE KINDS OF SALES MR KAHN IS DIRECTING A MULTIMILLIONDOLLAR PROMOTIONAL CAMPAIGN THAT WILL INCLUDE STORE DISPLAYS VIDEO ADVERTISING IN 700 STORES AND HUNDREDS OF PRODUCT DEMONSTRATIONS TO USER GROUPS AND CORPORATE CUSTOMERS 9308250029 930825 JUDGE TEMPORARILY BARS STRIKE BY AMTRAK UNION WASHINGTON A FEDERAL DISTRICT COURT HERE TEMPORARILY BARRED ONE OF AMTRAK'S UNIONS FROM STRIKING THE NATIONAL PASSENGER RAILROAD OVER A WORK RULE DISPUTE THE UNITED TRANSPORTATION UNION HAD THREATENED TO STRIKE AMTRAK AT 1201 AM EDT TODAY BUT MICHAEL EMAN A UTU VICE GENERAL CHAIRMAN IN PHILADELPHIA SAID THE UTU WILL HONOR THE JUDGE'S INSTRUCTIONS AND THERE WILL NOT BE A WORK STOPPAGE AT THIS TIME AN AMTRAK SPOKESMAN SAID THE TEMPORARY RESTRAINING ORDER EXPIRES IN 10 DAYS THE NEXT STEP IS FOR THE UNION AND AMTRAK TO ENTER INTO ARBITRATION TO NEGOTIATE A SETTLEMENT OF THE DISPUTE HE SAID MR EMAN DECLINED TO COMMENT THE DISPUTE CONCERNS THE USE OF MAINTENANCE EMPLOYEES TO MOVE EMPTY METROLINK PASSENGER TRAINS WITHIN AMTRAK'S LOS ANGELES MAINTENANCE FACILITY THE UTU CLAIMS THAT THE WORK BELONGS TO ITS MEMBERS AMTRAK SAYS THE ISSUE INVOLVES THREE JOB POSITIONS THE METROLINK TRAINS ARE OPERATED BY AMTRAK UNDER CONTRACT TO THE CALIFORNIA DEPARTMENT OF TRANSPORTATION THE STRIKE WOULD HAVE AFFECTED ABOUT 62000 PASSENGERS CARRIED BY AMTRAK EACH DAY ON 220 TRAINS IN 45 STATES THE COURT'S ORDER ALSO REPRESENTS A REPRIEVE FOR RAIL COMMUTERS IN NEW YORK BOSTON PHILADELPHIA WASHINGTON CHICAGO AND LOS ANGELES 9308250028 930825 BUSINESS BRIEF DEL WEBB CORP CONCERN EXPECTS DROP IN NET FOR THE FISCAL FIRST QUARTER DEL WEBB CORP A DEVELOPER OF RETIREMENT COMMUNITIES SAID IT EXPECTS FISCAL FIRSTQUARTER PROFIT TO BE SIGNIFICANTLY LOWER THAN THE 35 MILLION OR 22 CENTS A SHARE RECORDED FOR THE YEARAGO PERIOD PHIL DION CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE EXPECTED DOWNTURN IN THE QUARTER ENDING SEPT 30 IS QUITE A TEMPORARY MATTER RESULTING FROM A SITUATION WHERE LUMBER DOUBLED IN PRICE WITHIN A 60DAY PERIOD BUT WE WERE NOT ABLE TO PASS ALL THOSE COSTS THROUGH TO OUR CUSTIOMERS ON SUCH SHORT NOTICE MR DION SAID THE COMPANY'S GROSS MARGINS STARTED DECLINING IN THE FOURTH QUARTER ENDED JUNE 30 BECAUSE PHOENIXBASED DEL WEBB HAD SOLD HOMES UNDER FIXEDPRICE CONTRACTS BEFORE THE SHARP INCREASE IN LUMBER PRICES THAT STARTED AT THE BEGINNING OF THE YEAR AFTER ITS FIRST QUARTER THE COMPANY EXPECTS MARGINS TO RISE GRADUALLY AS FUTURE CLOSINGS REFLECT SALES PRICE INCREASES INITIATED AT VARIOUS TIMES SINCE JANUARY MR DION SAID IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE DEL WEBB SHARES CLOSED DOWN 1 AT 12625 9308250027 930825 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN CITING AN EXPECTED DROP IN HONG KONG'S RESIDENTIAL PROPERTY PRICES THIS YEAR HONGKONG & SHANGHAI BANKING CORP TIGHTENED ITS MORTGAGE LENDING POLICIES TO CONTAIN SPECULATION BUT IT STOPPED SHORT OF PUTTING A CAP ON NEW MORTGAGE LENDING THE HSBC HOLDINGS PLC UNIT WILL RAISE FEES FOR BORROWERS WHO FULLY REPAY LOANS WITHIN A YEAR STOP FINANCING MORTGAGES FOR BORROWERS WHO PLAN TO RENT OUT THE PROPERTY STUDY BORROWERS' FINANCIAL STANDING AS WELL AS GUARANTORS' REQUIRE BORROWERS TO DRAW DOWN A LOAN WITHIN 60 DAYS OF APPROVAL RATHER THAN A YEAR AND RAISE FEES FOR SOME BORROWERS WHO SET UP SHELL COMPANIES TO BUY PROPERTY IN ADDITION THE BANK'S WAY FOONG FINANCE GROUP WILL NO LONGER LEND FOR PURCHASES OF PROPERTIES THAT ARE MORE THAN SIX MONTHS FROM COMPLETION JULY'S RESIDENTIAL MORTGAGE LENDING IN HONG KONG ROSE 26 FROM JUNE THE FASTEST PACE SINCE THE END OF 1991 PUBLIC CONFIDENCE IN BRITAIN'S ECONOMIC RECOVERY IS PICKING UP ACCORDING TO A GALLUP SURVEY WITH ABOUT 34 OF BRITONS EXPECTING AN IMPROVEMENT IN THE ECONOMY THE HIGHEST LEVEL OF OPTIMISM SINCE JUNE 1992 SOME 28 EXPECTED A DECLINE UNDERPINNING THE OPTIMISM IS A BELIEF THAT UNEMPLOYMENT WON'T RISE IN COMING MONTHS GALLUP SAID 43 BELIEVE NOW IS THE RIGHT TIME FOR A MAJOR PURCHASE WHILE ONLY 28 FEEL IT'S THE WRONG TIME HOWEVER ONLY 20 SAY THEIR HOUSEHOLD FINANCIAL CONDITION WILL GET BETTER IN THE NEXT YEAR WHILE 26 FEEL IT WILL WORSEN THE GROWING NUMBER OF LARGE CITIES IN ASIA POSES THE THREAT OF CONTAMINATION TO THE CONTINENT'S WATER SUPPLY AN ASIAN DEVELOPMENT BANK OFFICIAL WARNED THE HEAD OF THE BANK'S INFRASTRUCTURE DEPARTMENT SAID NEW SUPPLIES WILL BE NEEDED TO PROVIDE SAFE DRINKING WATER ADDING THAT THE LACK OF WATER TREATMENT AND WASTE DISPOSAL SYSTEMS IN MANY MEGACITIES IS OFTEN ACCEPTED BY RESIDENTS WHO BELIEVE THEY CAN'T AFFORD SUCH SYSTEMS EXPANDED SUPPLIES WOULDN'T BE IMMEDIATELY NEEDED IF RESOURCES WERE BETTER MANAGED BY CURBING SUCH WASTEFUL PRACTICES AS DUMPING RAW WASTE INTO RIVERS THE OFFICIAL SAID THE COMMONWEALTH OF INDEPENDENT STATES LAUNCHED A JOINT INITIATIVE TO FIGHT TERRORISM DRUGS POLLUTION AND THE SPREAD OF WEAPONS OF MASS DESTRUCTION ONE OF A SERIES OF COOPERATION AGREEMENTS BETWEEN THE 10 FORMER SOVIET REPUBLICS THE AGREEMENTS ADOPTED AT A MEETING OF CIS FOREIGN MINISTERS IN MOSCOW INCLUDED PROPOSALS FOR HUMANRIGHTS PROTECTIONS THE MINISTERS ALSO AGREED TO SUPPORT BELARUS'S CANDIDACY FOR A ROTATING CIS SEAT ON THE UNITED NATIONS SECURITY COUNCIL CONTRARY TO EXPECTATIONS WESTERN GERMAN EXPORTERS ARE BENEFITING MORE THAN EASTERN GERMAN FIRMS FROM LIBERALIZED TRADE WITH EASTERN EUROPE A STUDY BY A HAMBURG THINK TANK FOUND GERMANY DOMINATES TRADE WITH EASTERN EUROPE ACCOUNTING FOR 535 OF EUROPEAN COMMUNITY EXPORTS TO THE REGION WESTERN GERMANY SUPPLIED 432 OF THE EC EXPORTS WHILE EASTERN GERMANY GENERATED 103 GERMANY ALSO SUPPLIES 602 OF EC EXPORTS TO THE SOCALLED REFORM STATES THE CZECH REPUBLIC SLOVAKIA HUNGARY AND POLAND WHICH ARE INCREASINGLY IMPORTANT EXPORT MARKETS BECAUSE OF INSTABILITY IN OTHER COUNTRIES IN THE REGION AUSTRALIA'S GOVERNMENT WILL TRY TO SEND NATIVELANDTITLE LEGISLATION TO PARLIAMENT BY OCT 1 AND A DOCUMENT OUTLINING THE PROPOSED LAW WILL BE RELEASED IN THE NEXT TWO WEEKS THE ISSUE AROSE FROM A 1992 HIGH COURT CASE THAT RECOGNIZED A FORM OF NATIVE TITLE AND REJECTED THE NOTION THAT THE LAND BELONGED TO NO ONE BEFORE EUROPEAN SETTLEMENT MINING COMPANIES IN PARTICULAR ARE CONCERNED THAT THE RULING THROWS SOME TITLES INTO DOUBT AND HAVE ASKED THE GOVERNMENT TO CLARIFY THE SITUATION THE GOVERNMENT SAID IT WANTS TO OFFER ECONOMIC SECURITY TO INVESTORS AND HOLDERS OF EXISTING TITLES WHILE PROVIDING GREATER JUSTICE TO ABORIGINAL AUSTRALIANS SOUTH KOREA PLANS TO BUILD A SECOND HIGHSPEED RAILROAD ALONG THE WESTERN PART OF THE PENINSULA TO COMPLEMENT THE RAIL LINK NOW UNDER CONSTRUCTION BETWEEN SEOUL AND THE SOUTHERN PORT OF PUSAN THE WESTERN RAILROAD IS WIDELY SEEN AS AN EFFORT TO DEFUSE CRITICISM THAT THE 137 BILLION SEOULPUSAN PROJECT SLATED FOR COMPLETION BY 2001 WILL AGGRAVATE UNEVEN ECONOMIC DEVELOPMENT THE COUNTRY'S SOUTHEAST HAS ENJOYED RAPID GROWTH WHILE THE WEST HAS FALLEN BEHIND THE PLAN IS ALSO SEEN AS AN EFFORT TO BOOST SOUTH KOREA'S ECONOMY WHICH GREW AT AN ANNUAL PACE OF 42 IN THE SECOND QUARTER THE LOWEST RATE SINCE 1980 THE SECOND RAILWAY MAY FACE RESISTANCE FROM THE OPPOSITION DEMOCRATIC PARTY WHICH CLAIMS THAT BUILDING MORE EXPRESSWAYS AND AIRPORTS WOULD BE A MORE EFFICIENT WAY TO STEM THE ECONOMIC LOSSES ARISING FROM TRAFFIC CONGESTION HONG KONG WILL SPEND 67 MILLION TO REINFORCE A WIREMESH FENCE ALONG THE 20MILE BORDER WITH CHINA TO KEEP OUT ILLEGAL IMMIGRANTS THE BODIES OF 133 DESTITUTE IRISH WOMEN WILL BE DUG UP AND CREMATED BY THE SISTERS OF OUR LADY OF CHARITY SO THAT THE PLOTS CAN BE SOLD TO PAY OFF DEBTS INCURRED BY THE DUBLIN CONVENT IN SETTING UP A CENTER FOR WOMEN IN NEED 9308250026 930825 BUSINESS BRIEF RIO ALGOM LTD CANADA MINING CONCERN SELLS 21 STAKE IN ORVANA MINERALS RIO ALGOM LTD SAID IT SOLD ITS 21 STAKE IN ORVANA MINERALS CORP OF VANCOUVER FOR 139 MILLION CANADIAN DOLLARS US105 MILLION TO SEVERAL INVESTORS RIO ALGOM A TORONTO MINING CONCERN SAID IT WILL USE THE PROCEEDS FOR GENERAL CORPORATE PURPOSES INCLUDING DEVELOPMENT OF ITS CERRO COLORADO COPPER MINE IN CHILE A RIO ALGOM SPOKESMAN SAID THE COMPANY DECIDED TO SELL THE STAKE BECAUSE AS A GOLDEXPLORATION COMPANY ORVANA DOESN'T FIT INTO RIO ALGOM'S FOCUS ON COPPER URANIUM POTASH AND COAL THE SPOKESMAN SAID HE DOESN'T KNOW WHO THE INVESTORS ARE RIO ALGOM SAID IT WILL BOOK AN AFTERTAX GAIN OF C109 MILLION FROM THE SALE RIO ALGOM SHARES CLOSED UNCHANGED AT US14625 YESTERDAY IN AMERICAN STOCK EXCHANGE TRADING 9308250025 930825 BUSINESS BRIEF ROHR INC COMPANY TO PAY 4 MILLION TO SETTLE SHAREHOLDERS' SUITS ROHR INC CHULA VISTA CALIF SAID IT WILL PAY 4 MILLION TO SETTLE TWO LAWSUITS BY SHAREHOLDERS WHO ALLEGED THAT COMPANY OFFICIALS MADE FALSE AND MISLEADING STATEMENTS ABOUT ROHR'S FINANCIAL HEALTH IN 1989 THE CLASSACTION SUITS WERE FILED IN SAN DIEGO FEDERAL COURT ONE DAY AFTER ROHR REPORTED AN UNEXPECTED LOSS OF 114 MILLION OR 64 CENTS A SHARE FOR THE FIRST QUARTER ENDED OCT 29 1989 THE COMPANY WHICH MAKES AIRCRAFT ENGINE HOUSINGS STRUTS AND THRUST REVERSERS BLAMED THE LOSS ON COSTOVERRUNS ON FIXEDPRICE MILITARY CONTRACTS AND INCREASED INTEREST EXPENSES THE SETTLEMENT WAS APPROVED BY US DISTRICT JUDGE IRMA GONZALEZ A ROHR SPOKESMAN SAID THE COMPANY HAS ALREADY PAID THE SETTLEMENT MONEY INTO A TRUST AND SHAREHOLDERS WHO QUALIFY WILL RECEIVE A PORTION OF THE FUNDS HE DECLINED TO SAY WHETHER THE SETTLEMENT PAYMENT WILL BE COVERED BY INSURANCE 9308250024 930825 BUSINESS BRIEF IRG TECHNOLOGIES INC SHAREHOLDERS' SUIT ALLEGES FIRM ISSUED FALSE STATEMENTS SHAREHOLDERS OF IRG TECHNOLOGIES INC HAVE FILED SUIT IN FEDERAL COURT IN DALLAS ALLEGING THAT THE COMPUTER PARTS DISTRIBUTOR ISSUED FALSE AND MISLEADING DOCUMENTS IN CONNECTION WITH ITS INITIAL PUBLIC OFFERING IN MAY AT LEAST THREE SUITS HAVE BEEN FILED AGAINST THE COMPANY AND FOUR OFFICERS SEEKING UNSPECIFIED COMPENSATION FOR LOSSES SUFFERED BY INVESTORS WHO BOUGHT THE COMPANY'S STOCK AT 750 A SHARE IN THE OFFERING THE SUITS ALL SEEK CLASSACTION STATUS ON AUG 13 THE RICHARDSON TEXAS COMPANY REPORTED DISAPPOINTING THIRDQUARTER EARNINGS AND DISCLOSED THAT ITS RECORDKEEPING SYSTEM WAS UNABLE TO KEEP UP WITH COMPLICATED MANUFACTURER REBATES DURING THE QUARTER THE NEWS CAUSED THE COMPANY'S STOCK TO DROP TO 4 A SHARE IN NATIONAL OVERTHECOUNTER TRADING THE NEXT TRADING DAY DOWN 29375 IN TRADING YESTERDAY IRG CLOSED AT 4 UP 25 CENTS COMPANY OFFICIALS COULDN'T BE REACHED TO COMMENT 9308250023 930825 COLLINS & AIKMAN TO CLOSE BUILDERS EMPORIUM DIVISION BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL COLLINS & AIKMAN GROUP INC UNABLE TO FIND A BUYER FOR ITS BUILDERS EMPORIUM DIVISION SAID IT WILL CLOSE THE UNIT IDLING 4300 WORKERS BUILDERS EMPORIUM OPERATES 97 HOMEIMPROVEMENT STORES 82 OF THEM IN CALIFORNIA IN 1992 THE CHAIN HAD SALES OF APPROXIMATELY 500 MILLION COMPETITION FROM OTHER WAREHOUSE STORES COUPLED WITH A WEAK ECONOMY IN CALIFORNIA PROMPTED COLLINS & AIKMAN EARLIER THIS YEAR TO BEGIN SEARCHING FOR A BUYER FOR THE CHAIN WE HAD SUBSTANTIVE DISCUSSIONS WITH A NUMBER OF PEOPLE SAID DAVID J MCKITTRICK VICE CHAIRMAN AND CHIEF OPERATING OFFICER OF COLLINS & AIKMAN A SPECIALTY MANUFACTURING AND RETAILING CONCERN BASED IN CHARLOTTE NC BUT AN AGREEMENT HE SAID WAS NEVER REACHED MR MCKITTRICK SAID COLLINS & AIKMAN POURED SUBSTANTIAL AMOUNTS OF MONEY INTO BUILDERS EMPORIUM IN THE PAST TWO YEARS BUT THE CHAIN DIDN'T EXPERIENCE A TURNAROUND SO THE TIME HAS COME TO GET OUT BUILDERS EMPORIUM WAS ACQUIRED BY A PARTNERSHIP OF BLACKSTONE GROUP AND WASSERSTEIN PERELLA & CO AS PART OF ITS 539 MILLION ACQUISITION OF WICKES CO IN 1988 THE INVESTORS IMMEDIATELY BEGAN DIVESTING WICKES' RETAILING AND MANUFACTURING OPERATIONS AND LATER RENAMED WICKES COLLINS & AIKMAN DURING THE MID1980S WICKES WAS HEADED BY SANFORD C SIGOLOFF A TURNAROUND EXPERT WHO TOOK THE COMPANY IN AND OUT OF BANKRUPTCY PROCEEDINGS MR SIGOLOFF NOW A CONSULTANT BECAME SOMETHING OF A CELEBRITY IN SOUTHERN CALIFORNIA AFTER HE APPEARED FOR YEARS AS A PITCHMAN IN A SERIES OF BUILDERS EMPORIUM TELEVISION COMMERCIALS COLLINS & AIKMAN IS NOW A UNIT OF COLLINS & AIKMAN HOLDINGS CORP ALSO BASED IN CHARLOTTE THE PARENT IS JOINTLY OWNED BY BLACKSTONE AND WASSERSTEIN PERELLA MR MCKITTRICK SAID COLLINS & AIKMAN GROUP WILL TAKE A CHARGE AGAINST EARNINGS IN ITS FISCAL SECOND QUARTER WHICH ENDED JULY 31 IN CONNECTION WITH THE SALE OR DISPOSITION OF BUILDERS EMPORIUM'S INVENTORY AND OTHER ASSETS MR MCKITTRICK SAID HE COULDN'T ESTIMATE THE SIZE OF THE CHARGE ADDING ONLY THAT THE COMPANY PLANS TO RELEASE ITS SECONDQUARTER FIGURES SHORTLY AFTER LABOR DAY IN THE FISCAL SECOND QUARTER ENDED JULY 25 1992 COLLINS & AIKMAN REPORTED A NET LOSS OF 171 MILLION ON SALES OF 5624 MILLION MR MCKITTRICK SAID BUILDERS EMPORIUM WILL BEGIN GOINGOUTOFBUSINESS SALES IN A WEEK TO 10 DAYS SOME BUYERS HE SAID HAVE INDICATED AN INTEREST IN INDIVIDUAL STORES OR GROUPS OF STORES IT WILL BE A PIECEMEAL SALE OF THE BUSINESS HE SAID ADDING THAT THE PROCESS SHOULD BE COMPLETED WITHIN 60 TO 90 DAYS MR MCKITTRICK SAID COLLINS & AIKMAN WILL TAKE STEPS TO HELP THE CHAIN'S 4300 EMPLOYEES FIND NEW JOBS RHONDA L RUNDLE IN LOS ANGELES CONTRIBUTED TO THIS ARTICLE 9308250022 930825 THE HUNT FOR OIL WHAT MAJOR COMPANIES ARE DOING SEEMINGLY OUT OF NOWHERE THE NEW YORK COMPANY HAS BECOME A MAJOR PLAYER IN THE NORTH SEA AND FULLY HALF ITS RESERVES ARE LOCATED THERE SEVERAL NEW FIELDS WILL COME ON STREAM SHORTLY PARTICULARLY THE SCOTT FIELD ONE OF THE LARGEST NORTH SEA DISCOVERIES IN RECENT YEARS HESS HAS INTERESTS IN FARFLUNG PLACES LIKE ABU DHABI EGYPT GABON AND THAILAND BUT NONE HAS COME UP A BIG WINNER THEY'VE DONE SO WELL IN THE UK NORTH SEA THAT THEY HAVEN'T SPENT MUCH MONEY ELSEWHERE SAYS EUGENE NOWAK AN ANALYST AT DEAN WITTER REYNOLDS INC WITH MOST OF ITS RESERVES IN HUGE ALASKAN FIELDS ARCO HAS ONLY RECENTLY MADE A SERIOUS OVERSEAS THRUST ARCO IS STARTING FROM NOWHERE SAYS THOMAS DRISCOLL ANALYST AT SALOMON BROTHERS INC THE LOS ANGELES COMPANY HAS FOCUSED MAINLY ON THREE PROVEN PROVINCES THE NORTH SEA INDONESIA AND DUBAI AND HAS GROWN RAPIDLY FROM ITS SMALL BASE NATURALGAS RESERVES SURGED AS THE COMPANY LAST YEAR ALSO BEGAN TO DEVELOP THE YACHENG FIELD IN CHINA FINDING COSTS SHOULD COME DOWN AS SEVERAL OTHER PROJECTS COME ON STREAM EVER SINCE THIS LONDON COMPANY WAS PRIVATIZED IN 1986 IT HAS POURED MONEY INTO EXPLORATION AND DEVELOPMENT IN THE NORTH SEA FIGURING IT SHOULD DIVERSIFY BEYOND ITS UTILITY STATUS WHILE RESERVES AND PRODUCTION HAVE GROWN SUBSTANTIALLY COSTS HAVE BEEN HIGH AT THIS POINT IN BRITISH GAS'S LEARNING CURVE PRODUCTION WILL GROW WHEN SOME EXPENSIVE NEW DEVELOPMENTS NOTABLY THE NORTH MORECAMBE FIELD COME ON STREAM IN COMING YEARS BRITISH GAS HAS ALSO SPENT A LOT OF MONEY OUTSIDE THE UK WHERE 20 OF ITS RESERVES ARE NOW LOCATED OVERLY OPTIMISTIC ON PRICE BRITISH PETROLEUM WENT LOOKING FOR ELEPHANTS AND ENDED UP SPENDING WHAT ANALYSTS NOW SAY WAS TOO MUCH MONEY IN TOO MANY PLACES THE URGENCY IS UNDERSTANDABLE BP OWNS ONCEPROLIFIC BUT NOW AGING OIL FIELDS SUCH AS PRUDHOE BAY IN ALASKA AND THE FORTIES FIELD IN THE NORTH SEA THE LONDON COMPANY NEEDS HUGE DISCOVERIES OR A LOT OF SMALLER ONES TO REPLACE THE DWINDLING RESERVES FROM THOSE GIANTS BP HAS FOUND ONE ELEPHANT THE CUSIANA FIELD IN COLOMBIA THAT MAY HELP IT TURN THE CORNER BP IS ALSO BETTING HEAVILY ON BIG SLOWMOVING DEVELOPMENT PROJECTS IN AZERBAIJAN KAZAKHSTAN AND RUSSIA IN THE 1980S BHP DECIDED IT NEEDED AN ELEPHANT FIELD OUTSIDE OF AUSTRALIA AND GOBBLED UP ACREAGE IN 80 COUNTRIES WE ASSUMED THAT IF WE DRILLED ENOUGH HIGHRISK HIGHPOTENTIAL WELLS BHP WOULD FIND ANOTHER BASS STRAIT HOME TO HUGE AUSTRALIAN FIELDS SAYS DENNIS LOUGHRIDGE A GROUP GENERAL MANAGER TOO OFTEN THE SYDNEYBASED COMPANY BUMPED INTO COMPETITORS THAT HAD ALREADY STAKED OUT THE GOOD FIELDS SO BHP THIS YEAR PLANS TO DRILL IN JUST ABOUT A DOZEN COUNTRIES WHERE DEVELOPMENT RATHER THAN EXPLORATION IS THE KEY TOP ON THE LIST IS VIETNAM'S DAI HUNG FIELD THOUGH FINDING COSTS HAVE BEEN IN THE MIDDLE OF THE PACK CHEVRON'S SPADE WORK OF THE PAST FEW YEARS SHOULD START TO SHOW UP IN SHARPLY HIGHER OIL PRODUCTION WE'VE TAKEN THE FOCUS OFF THE ELEPHANTS AND WE'RE LOOKING AT AREAS THAT ARE OIL PRODUCERS SAYS KENNETH DERR CHAIRMAN THE BIGGEST IS THE FIVEYEAR EFFORT TO DEVELOP THE MAMMOTH TENGIZ FIELD IN THE FORMER SOVIET REPUBLIC OF KAZAKHSTAN PRODUCTION BEGAN THIS YEAR AND CHEVRON EXPECTS TO SPEND 20 BILLION OVER 40 YEARS THE SAN FRANCISCO COMPANY'S FOREIGN OIL OUTPUT WILL CLIMB SHARPLY AS THE FIELD HITS PEAK PRODUCTION OF 700000 BARRELS A DAY IN THE SHADOW OF ITS PARENT COMPANY DUPONT CO THE CONOCO INC SUBSIDIARY HAS BEEN SUCCESSFUL IN THE NORTH SEA BUT HAS LITTLE TO SHOW ELSEWHERE WITH FINDING COSTS HIGH CONOCO DECIDED TO SCALE BACK ON WILDCAT EXPLORATION AND FOCUS MORE ON LOWRISK PROSPECTS AND THE DEVELOPMENT OF EXISTING FIELDS THE HOUSTON COMPANY HOPES TO USE ITS SIZABLE RESERVE BASE IN THE NORTH SEA TO DEVELOP SMALLER FIELDS THAT ARE ECONOMICAL BECAUSE THE EXISTING INFRASTRUCTURE HELPS KEEP DOWN COSTS CONOCO ALSO HAS A TOEHOLD IN LARGE DEVELOPMENTS IN RUSSIA AND VENEZUELA THIS COMPANY IS SO LARGE THAT ITS SIZE CAN WORK AGAINST IT BECAUSE EXXON NEEDS TO FIND BIGGER AND BIGGER ELEPHANTS JUST TO STAY EVEN LEE RAYMOND CHAIRMAN PREDICTS THAT THE IRVING TEXAS COMPANY'S OIL RESERVES WILL REMAIN FLAT THIS DECADE BUT THAT NATURALGAS RESERVES WILL GROW BY 25 SOME GROWTH WILL COME FROM THE NORTH SEA BUT EXXON IS PINNING MUCH OF ITS HOPES ON ASIA PARTICULARLY MALAYSIA AND INDONESIA EXXON IS LIKELY TO HAVE A HAND IN BIG PROJECTS IN THE FORMER SOVIET UNION BUT THE COMPANY THINKS BARRELS OF OIL ARE STILL YEARS AWAY SWEPT UP BY OLYMPIA & YORK DEVELOPMENTS LTD'S BANKRUPTCY REORGANIZATION GULF CANADA IS NOW 75 CONTROLLED BY OLYMPIA'S CREDITORS HIGH DEBT AND BIG OPERATING COSTS HAVE CONSTRAINED THE CALGARY ALBERTA COMPANY'S ABILITY TO SPEND MONEY ON EXPLORATION AND DEVELOPMENT GULF CANADA WITH MOST OF ITS RESERVES IN CANADA HAS BEEN SELLING ASSETS TO FOCUS ON ITS MOST PROFITABLE FIELDS OUTSIDE OF CANADA A HOPEDFOR GAS FIELD IN INDONESIA HAS YET TO MATERIALIZE PRODUCTION FROM RUSSIA IS ENCOURAGING BUT POLITICAL AND TAX PROBLEMS MAKE THE AREA RISKY FOR A WHILE BUILDING ON DECADES OF OVERSEAS EXPLORATION MOBIL HAS A FOOTHOLD IN MANY OF THE WORLD'S OILPRODUCING COUNTRIES AND IS EXPANDING INTO NEW ONES SALOMON BROTHERS INC ANALYST WILLIAM RANDOL SAYS THE COMPANY'S CROWN JEWEL REMAINS THE ARUN NATURALGAS FIELD IN INDONESIA DISCOVERED IN 1971 MOBIL HAS MADE ADDITIONAL DISCOVERIES NEARBY AND INVESTED IN TECHNOLOGY THAT KEEPS GAS FLOWING THE FAIRFAX VA COMPANY HAS LARGE PROFITABLE PRODUCTION IN NIGERIA AND NEW DISCOVERIES COULD ALMOST DOUBLE OUTPUT IN A FEW YEARS IN A LONGTERM VENTURE MOBIL HAS TEAMED WITH EXXON CORP TO STUDY DEVELOPMENT PROJECTS IN WESTERN SIBERIA FOUNDED IN 1905 TO TAKE ADVANTAGE OF NORWAY'S HYDROELECTRIC RESOURCES NORSK HYDRO DIDN'T BECOME AN OIL COMPANY UNTIL 1965 WHEN INDUSTRY EXPLORATION BEGAN IN THE NORWEGIAN NORTH SEA THE OSLO COMPANY OWNS A PIECE OF MANY OF THE SEA'S MAJOR FIELDS AND SEVERAL NEW ONES SHOULD COME ON STREAM SHORTLY THAT WILL BOOST RESERVES AND REDUCE SKYHIGH FINDING COSTS NORSK HYDRO HASN'T DRILLED MUCH OUTSIDE OF THE NORTH SEA THE IDEA THAT THEY SHOULD LOOK ELSEWHERE IN THE WORLD IS SOMEWHAT NEW TO THEM SAYS JOHN WELLEMEYER LONDON ANALYST FOR MORGAN STANLEY INTERNATIONAL INC A LONG AND SUCCESSFUL INTERNATIONAL HISTORY HAS BEEN A BOON TO OCCIDENTAL WHICH IN RECENT YEARS HAS COMBINED SELECTIVE ELEPHANT HUNTING WITH LARGE DEVELOPMENTS IN PROVEN AREAS BIG WILDCAT DISCOVERIES IN YEMEN WILL COME ON STREAM LATER THIS YEAR AND THE LOS ANGELES COMPANY LAST YEAR INCREASED ITS RESERVES AND PRODUCTION IN PERU IN ASIA OCCIDENTAL HAS A HUGE NATURALGAS DISCOVERY IN MALAYSIA AS WELL AS A BIG OIL AND GAS FIND IN THE PHILIPPINES A RUSSIAN JOINT VENTURE HAS BOOSTED RECOVERY FROM TWO EXISTING FIELDS BY THE MID1980S PHILLIPS WAS WEIGHED DOWN WITH DEBT IT TOOK ON TO THWART EARLIER TAKEOVER ATTEMPTS BY T BOONE PICKENS AND CARL ICAHN SO THE BARTLESVILLE OKLA COMPANY COULDN'T AFFORD HIGHRISK EXPLORATION INSTEAD IT HAS PUT ITS EFFORTS INTO SAFE MODESTSIZED DEVELOPMENT OF PROSPECTS WHERE PHILLIPS WAS NEARLY CERTAIN IT WOULD FIND OIL THE RESULT SOME OF THE LOWEST FINDING COSTS IN THE INDUSTRY THE LION'S SHARE OF INVESTMENT WILL CONTINUE TO FLOW INTO THE NORTH SEA PHILLIPS WILL AVOID LONGTERM MULTIBILLIONDOLLAR PROJECTS IN THE FORMER SOVIET UNION AND ELSEWHERE BECAUSE IT THINKS IT CAN BETTER SPEND ITS LIMITED CASH ON PROJECTS WITH A QUICKER RETURN THE MOST INTERNATIONAL OF THE WORLD'S BIG OIL COMPANIES ROYAL DUTCH HAS EXPANDED ITS RESERVES IN PLACES WHERE IT HAS OPERATED FOR DECADES SUCH AS NIGERIA AND BORNEO IN RECENT YEARS IT ALSO FOUND AN ELEPHANT IN SYRIA WITH DUAL HEADQUARTERS IN THE HAGUE AND LONDON ROYAL DUTCH THINKS IT WILL BE IN A GOOD POSITION FOR OPPORTUNITIES IN THE FORMER SOVIET UNION MARK MOODYSTUART HEAD OF EXPLORATION SAYS NATIONAL GOVERNMENTS SEE US AS AN INTERNATIONAL COMPANY NOT AS A DUTCH COMPANY A BRITISH COMPANY OR AN AMERICAN COMPANY EXTREMELY PESSIMISTIC ABOUT OIL PRICES ELF AQUITAINE GAVE UP FRONTIER EXPLORATION BECAUSE COSTS ARE TOO HIGH AND CHANCES OF FINDING OIL ARE TOO LOW THE COMPANY WAS BURNED BY WILDCAT WELLS IN BRAZIL AUSTRALIA CHINA AND MALAYSIA IT IS NOW CONCENTRATING ON RUSSIA AND KAZAKHSTAN PLACES IT IS SURE TO FIND OIL THE PARIS COMPANY HOPES TO SPEND AS MUCH AS 30 OF ITS EXPLORATION BUDGET THIS DECADE IN THE FORMER SOVIET REPUBLICS WHILE ADDING INCREMENTAL RESERVES TO LARGE FIELDS IN AFRICA AND THE NORTH SEA RECOVERING FROM A 1980S BANKRUPTCYCOURT FILING AND OVERHAUL TEXACO BOOSTED RESERVES AND KEPT COSTS DOWN BY EXPLOITING EXISTING FARFLUNG OPERATIONS MODEST FRONTIER EXPLORATION HASN'T ADDED MUCH BUT IN ESTABLISHED AREAS LIKE THE NORTH SEA TEXACO IS DEVELOPING FIELDS NEAR EXISTING INFRASTRUCTURE AND EXPECTS TO DOUBLE OUTPUT OVER THE NEXT TWO YEARS WE'VE BEEN IN AN INVESTMENT MODE UNTIL NOW SAYS DON BENNETT MANAGING DIRECTOR OF UK OPERATIONS THE WHITE PLAINS NY COMPANY HAS EXTENDED CONTRACTS TO DEVELOP MORE RESERVES IN INDONESIA TEXACO PRODUCTION RESUMED IN A WARDAMAGED AREA BETWEEN SAUDI ARABIA AND KUWAIT KNOWN AS THE NEUTRAL ZONE THIS PARIS COMPANY WENT ELEPHANT HUNTING AND FOUND SOME TOTAL HOLDS A LARGE CHUNK OF THE GIANT CUSIANA FIELD IN COLOMBIA WHERE THE PARTNERS ARE TESTING FOR MORE RESERVES NORTH SEA RESERVES ARE SIZABLE BUT THE COMPANY'S GROWTH IS EXPECTED TO COME FROM LARGE NATURALGAS DISCOVERIES IN INDONESIA BECAUSE OF THEIR KNOWLEDGE OF THE GEOLOGY IN THE AREA THEY FOUND ONE IF NOT SEVERAL ELEPHANTS SAYS JOHN WELLEMEYER LONDON ANALYST FOR MORGAN STANLEY INTERNATIONAL INC DEVELOPMENT OF NATURALGAS RESERVES IN THE GULF OF THAILAND ACCOUNTS FOR THE BULK OF UNOCAL'S LOWCOST RAPID INTERNATIONAL GROWTH WITH THE GULF'S WELLDEVELOPED BUT EXPANDING INFRASTRUCTURE UNOCAL CHAIRMAN RICHARD STEGEMEIER PREDICTS PRODUCTION THERE WILL GROW ANOTHER 27 BY 1996 SMALLER BUT SIGNIFICANT PRODUCTION INCREASES ARE ALSO EXPECTED IN INDONESIA ANOTHER PROVEN PROVINCE THE LOS ANGELES COMPANY HAS A CHUNK OF A LARGE OIL DEVELOPMENT PROJECT IN AZERBAIJAN BUT POLITICAL TURMOIL THERE MEANS PRODUCTION WILL TAKE LONGER THAN EXPECTED SPLIT OFF FROM THE STEEL COMPANY USX'S MARATHON GROUP OIL SUBSIDIARY HAS CONSERVATIVELY DEVELOPED ADDITIONAL LARGE RESERVES IN PROVEN TERRAINS IN THE UK NORTH SEA PRODUCTION WILL INCREASE LATE THIS YEAR AT THE BRAE AREA NOW THAT A NEW PLATFORM HAS BEEN INSTALLED THE COMPANY'S OUTPUT FROM INDONESIA WILL ALSO RISE WHEN TWO NEW FIELDS COME ON STREAM IN 1995 MARATHON BASED IN HOUSTON IS ONE OF FIVE COMPANIES JOINTLY STUDYING A LARGE OFFSHORE DEVELOPMENT PROJECT NEAR RUSSIA'S SAKHALIN ISLAND SEE RELATED ARTICLE THE HUNT FOR OIL PETROLEUM INDUSTRY PINS FUTURE ON FINDING LARGE OVERSEAS FIELDS THE SEARCH IS FAR FROM EASY AS AMOCO A LATECOMER TO GAME HAS LEARNED CURBING A SHOTGUN APPROACH WSJ AUG 25 1993 9308250021 930825 MARKET BRIEF MACANDREWS & FORBES GROUP INC REVLON UNIT AGREES TO SETTLE FTC CHARGES OF FALSE CLAIMS REVLON INC NEW YORK AGREED TO SETTLE FEDERAL TRADE COMMISSION CHARGES THAT IT LACKS EVIDENCE TO SUPPORT ADVERTISING CLAIMS IT MADE TO PROMOTE CERTAIN SKINCARE PRODUCTS THE FTC SAID REVLON AND ITS SUBSIDIARY CHARLES REVSON INC FALSELY CLAIMED THEY HAD A REASONABLE BASIS FOR ASSERTING THAT THEIR PHOTOAGING SHIELD BLOCKS ALL HARMFUL RAYS THAT CAUSE SKIN TO BECOME PREMATURELY WRINKLED AND LEATHERY UNDER A PROPOSED CONSENT DECREE WHICH WILL BE SUBJECT TO PUBLIC COMMENT FOR 60 DAYS REVLON WON'T MAKE SUCH CLAIMS IN THE FUTURE WITHOUT SCIENTIFIC EVIDENCE TO SUPPORT THEM IT ALSO WILL DISCLOSE THE ACTUAL SUNPROTECTION FACTOR VALUE IN ADVERTISEMENTS PROMOTING SUNSCREENS ACCORDING TO THE FTC REVLON ALSO AGREED TO SETTLE CHARGES THAT IT COULDN'T BACK UP ASSERTIONS THAT ITS ULTIMA II PROCOLLAGEN ANTICELLULITE BODY COMPLEX HELPS REDUCE CELLULITE OR FATTY DEPOSITS UNDER THE SKIN AND TONES THE SKIN REVLON IS A UNIT OF MACANDREWS & FORBES GROUP INC 9308250020 930825 WHAT'S NEWS BUSINESS AND FINANCE STOCKS SURGED TO RECORD LEVELS BOOSTED BY A RALLY IN ECONOMICALLY SENSITIVE ISSUES BOND PRICES ALSO ROSE STRONG GAINS IN HEAVY MACHINERY AND AUTO STOCKS HELPED SEND THE DOW INDUSTRIALS UP 3298 TO A RECORD 363896 THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND ROSE NEARLY 3/8 POINT ITS YIELD FELL TO 619 A 16YEAR LOW BELL ATLANTIC MAY ENTER THE VIDEO PROGRAMMING BUSINESS A FEDERAL COURT SAID IN A RULING THAT COULD RESHAPE THE COMPETITION BETWEEN PHONE COMPANIES AND CABLE OPERATORS FEDERAL APPEALS COURT JUDGES EXPRESSED SKEPTICISM AT ARGUMENTS THAT THE CLINTON ADMINISTRATION NEEDS TO FILE AN ENVIRONMENTAL IMPACT STATEMENT BEFORE PROCEEDING WITH THE NORTH AMERICAN FREE TRADE AGREEMENT OIL PRODUCTION BY OPEC MEMBERS REMAINS HIGH DESPITE SLUGGISH DEMAND RESULTING IN A RISE IN INVENTORIES THAT IS HOLDING DOWN PRICES DAIMLERBENZ'S MERCEDES PLANS TO ELIMINATE 14000 JOBS FROM ITS GERMAN OPERATIONS IN 1994 AMID A DOWNTURN IN EUROPE'S CAR AND TRUCK MARKETS HONDA MOTOR POSTED A 55 DROP IN GROUP PRETAX PROFIT FOR THE LATEST QUARTER REFLECTING THE EFFECTS OF THE STRONG YEN AND A STEEP DECLINE IN CAR SALES THE SELLING PACE OF NORTH AMERICANBUILT CARS AND LIGHT TRUCKS PICKED UP IN MIDAUGUST AS AUTO MAKERS USED CASH INCENTIVES TO SELL 1993 MODELS TO MAKE ROOM FOR NEW MODELS PROCTER & GAMBLE SUED MARS CLAIMING THAT THE CANDY BAR MAKER BACKED OUT OF AN AGREEMENT TO BUY A P&G LOWCALORIE FAT PRODUCT AMID REASSESSMENTS BY CANDY MAKERS OF THE MARKET FOR LOWCALORIE CANDY BARS TRAVELERS IS NEGOTIATING TO SELL AS MUCH AS 750 MILLION IN FORECLOSED COMMERCIAL REAL ESTATE TO TWO INVESTOR GROUPS LED BY CHICAGO INVESTOR SAM ZELL AND FINANCIER GEORGE SOROS TEXAS INSTRUMENTS WAS TAPPED BY FORD MOTOR TO SUPPLY A NEW ANTITHEFT DEVICE FOR FORD CARS IN EUROPE SHORT INTEREST IN THE OVERTHECOUNTER STOCK MARKET REACHED A RECORD FOR THE SEVENTH CONSECUTIVE MONTH CLIMBING 52 IN MIDAUGUST BORLAND INTERNATIONAL IS SLASHING THE PRICE OF ITS NEW SOFTWARE SPREADSHEET PRODUCTS AS MUCH AS 84 NOVELL AND SYNOPTICS PLAN TO INTEGRATE PRODUCTS IN A MOVE THAT COULD MAKE IT EASIER TO ALLOW COMPUTERS TO COMMUNICATE WITH EACH OTHER MATSUSHITA ELECTRIC INDUSTRIAL REPORTED A 7 DROP IN FIRSTQUARTER PRETAX PROFIT ON A 7 DECLINE IN SALES THE RESULTS FUELED OPTIMISM THAT MATSUSHITA HAS SLIMMED DOWN TO BETTER COPE WITH A CONSUMERELECTRONICS SLUMP BONDS LEHMAN BROTHERS TREASURY INDEX 550259 UP 1372 COMMODITIES OIL 1835 A BARREL OFF 18 CENTS DOW JONES FUTURES INDEX 12575 UP 049 SPOT INDEX 12278 OFF 046 DOLLAR 10375 YEN UP 070 16790 MARKS OFF 00045 9308250019 930825 PEROT STEPS UP CAMPAIGN TO DEFEAT NAFTA ACCORD WASHINGTON ROSS PEROT STEPPED UP HIS CAMPAIGN TO DEFEAT THE NORTH AMERICAN FREE TRADE AGREEMENT IN A BOOK THAT ATTACKS THE US FOR NEGOTIATING A DEAL THAT WILL PIT AMERICAN AND MEXICAN WORKERS IN A RACE TO THE BOTTOM THE NEW BOOK CLAIMS MEXICAN INDUSTRIES WON MORE RIGHTS THAN US COMPANIES DID IT SAYS NAFTA WILL HURT THE US TRUCKING REAL ESTATE COMMUNICATIONS CONSTRUCTION BANKING AND AUTO INDUSTRIES AS WELL AS THE DOMESTIC AGRICULTURAL SECTOR IN PARTICULAR IT ALSO LAYS OUT A SCATHING ATTACK ON FORMER US OFFICIALS WHO HAVE WORKED FOR THE MEXICAN INTERESTS ON NAFTA THE TEXAS BILLIONAIRE'S COAUTHOR IS PAT CHOATE WHO HAS WRITTEN A BOOK ABOUT FORMER GOVERNMENT OFFICIALS WHO BECAME FOREIGN LOBBYISTS MR PEROT'S PUBLISHER NEW YORKBASED HYPERION INITIALLY PLANS TO PUBLISH 200000 COPIES OF THE BOOK WHICH IS TITLED SAVE YOUR JOB SAVE OUR COUNTRY WHY NAFTA MUST BE STOPPEDNOW MR PEROT WHO IS PEGGING RELEASE OF THE BOOK TO LABOR DAY EVEN THOUGH IT WILL BE AVAILABLE IN SOME STORES THIS WEEK REPEATS HIS MANTRA THAT THERE WILL A GIANT SUCKING SOUND OF US FIRMS MOVING OPERATIONS TO MEXICO BECAUSE OF LOWER COSTS THERE HE'S EXPECTED TO REPEAT THAT CRITICISM IN RALLIES NEXT MONTH 9308250018 930825 THE HUNT FOR OIL PETROLEUM INDUSTRY PINS FUTURE ON FINDING LARGE OVERSEAS FIELDS THE SEARCH IS FAR FROM EASY AS AMOCO A LATECOMER TO GAME HAS LEARNED CURBING A SHOTGUN APPROACH BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON ROGER FLINN IS A FAILED ELEPHANT HUNTER FROM TUNISIA TO AUSTRALIA HE HAS DRILLED 29 COSTLY WELLS FOR AMOCO CORP IN SEARCH OF A GIANT PETROLEUM FIELD THAT COULD TURN THE COMPANY'S FORTUNES AROUND BUT SINCE 1985 MR FLINN HAS COME UP DRY IN ALL BUT ONE OF HIS FORAYS AND FAR FROM BEING AN ELEPHANT THAT ONE IS NOT EVEN A GUSHER THE BOTTOM LINE IS WE'RE OUT THERE TO FIND OIL THE FRUSTRATED DRILLING FOREMAN SAYS WE HAVEN'T FINDING OIL AND GAS IS THE LIFEBLOOD OF BIG ENERGY COMPANIES AND AMOCO IN PARTICULAR NEEDS A TRANSFUSION MR FLINN'S EIGHTYEAR AROUNDTHEWORLD ODYSSEY OF ONE DRY HOLE AFTER ANOTHER REFLECTS THE COMPANY'S FAILURE TO BECOME A MAJOR OVERSEAS OIL FINDER THE ENTIRE PETROLEUM INDUSTRY IS ELEPHANT HUNTING IN VARYING DEGREES BETWEEN 1988 AND 1992 THE WORLD'S 234 LARGEST PUBLICLY TRADED OIL COMPANIES SPENT 157 BILLION ON EXPLORATION AND DEVELOPMENT OUTSIDE THE US 49 MORE THAN IN THE US AN ARTHUR ANDERSEN & CO STUDY SHOWS WHAT'S HAPPENING NOW IS THE EFFORT BY THESE COMPANIES TO SECURE THEIR FUTURES IN THE 21ST CENTURY SAYS DANIEL YERGIN AUTHOR OF THE PRIZE AN OILINDUSTRY HISTORY BUT BIG OIL HAS LEARNED THAT NEW FIELDS ARE HARDER AND HARDER TO FIND WHEREAS IN 1990 THE INDUSTRY DISCOVERED 148 BARRELS OF OIL OUTSIDE THE US FOR EVERY 100 BARRELS IT SOLD ABROAD LAST YEAR IT ADDED JUST 100 BARRELS OF FOREIGN RESERVES FOR EVERY 100 BARRELS OF OIL SOLD THE ANDERSEN STUDY SHOWS OVER THE SAME PERIOD THE AVERAGE COST OF REPLACING THE CRUDE SURGED 55 TO 656 A BARREL THIS INEVITABLY SETS THE STAGE FOR TIGHTER WORLD OIL SUPPLIES AND HIGHER PRICES SAYS VAHAN ZANOYAN SENIOR DIRECTOR OF PETROLEUM FINANCE CO CONSULTANTS IN WASHINGTON OIL CONSUMING NATIONS SUCH AS THE US WILL BECOME INCREASINGLY DEPENDENT ON VOLATILE MIDDLE EAST OIL PRODUCERS INCLUDING IRAQ WHOSE OIL HAS BEEN BANNED FROM WORLD MARKETS SINCE THE PERSIAN GULF CRISIS HE SAYS THE ECONOMIC INFLUENCE OF SAUDI ARABIA A US ALLY IN THE GULF WAR WILL CONTINUE TO GROW SIMPLY BECAUSE MORE THAN ONEQUARTER OF THE WORLD'S OIL RESERVES LIE BENEATH THAT KINGDOM THOSE FIELDS HAVE BEEN OFFLIMITS TO INDUSTRY EXPLORATION SINCE THE SAUDI GOVERNMENT TOOK THEM OVER IN THE 1970S THE INDUSTRY'S SOBERING LACK OF SUCCESS AT FINDING OIL OUTSIDE THE PERSIAN GULF HAS PROMPTED AMOCO AND OTHER COMPANIES TO REIN IN HIGHRISK FRONTIER EXPLORATION AND SWITCH TO A MORE CAUTIOUS STRATEGY SEARCHING FOR OIL NEAR AREAS WHERE IT ALREADY HAS BEEN FOUND THE GOLDEN AGE WHERE YOU COULD GO TO A FRONTIER AREA AND STAY FOR SEVEN OR 10 YEARS UNTIL YOU FIND OIL IS GONE SAYS LOIK LE FLOCHPRIGENT FORMER CHIEF EXECUTIVE OF FRANCE'S SOCIETE NATIONALE ELF AQUITAINE WHILE ALL OF THE INDUSTRY FACES THIS PROBLEM IT IS PARTICULARLY SEVERE FOR AMOCO ITS STUMBLING EFFORTS TO RESHAPE ITSELF INTO A FOREIGN OIL PRODUCER SHOW JUST HOW FRUSTRATING THE CHALLENGE CONFRONTING ALL OF THE INDUSTRY CAN BE AMOCO HAS BEEN A MODEST OVERSEAS PRODUCER FOR DECADES BUT IT IS BEST KNOWN FOR ITS ENVIABLE DOMESTIC REFINING AND MARKETING SYSTEM SLICED OFF IN 1911 FROM JOHN D ROCKEFELLER'S STANDARD OIL TRUST AMOCO HAD US REFINERIES AND GASOLINE STATIONS BUT NO OIL FIELDS THOUGH THE COMPANY LATER OBTAINED A FOOTHOLD IN SOME OF THE FINEST OIL FIELDS IN THE WORLD SITUATED IN VENEZUELA AND MEXICO IT SOLD ITS FOREIGN STAKE TO WHAT IS NOW EXXON CORP DURING THE DEPRESSION AFTER WORLD WAR II AMOCO AMASSED A STORIED COLLECTION OF BIG FINDS IN TEXAS LOUISIANA AND THE ROCKY MOUNTAINS AND HAS REMAINED THE MOST AMERICAN OF BIG OIL COMPANIES BEFITTING ITS NAME A TRUNCATION OF AMERICAN OIL CO BY THE MID1980S HOWEVER AMOCO COULD SEE THE WRITING ON THE WALL ITS US PRODUCTION WAS DWINDLING EXPLORATION COSTS WERE RISING RAPIDLY IN THE US AND MOST OF THE BIG FINDS HAD ALREADY BEEN MADE SO THE COMPANY LAUNCHED INTO THE BIGGEST OVERSEAS QUEST IN ITS 104YEAR HISTORY WITH DISASTROUS RESULTS AMOCO BOLDLY RATCHETED UP OVERSEAS SPENDING TO 70 OF ITS 1992 OILFINDING BUDGET FROM 28 IN 1987 GEOLOGISTS PLOTTED OIL MAPS IN 120 OF THE WORLD'S 188 COUNTRIES WHILE AMOCO SLASHED ITS US EXPLORATION STAFF TO 100 PEOPLE FROM 240 COMPANY HARDHATS COULD BE SEEN MOST EVERYWHERE FROM MOROCCO TO MADAGASCAR AMOCO SPENT 12 BILLION DRILLING 190 WILDCAT WELLS ON FOUR CONTINENTS BUT FOUND NOT A SINGLE GIANT FIELD AT THE SAME TIME IT WAS BETTING ON A PROLONGED BOOM IN ENERGY PRICES THAT DIDN'T MATERIALIZE LOOKING BACK COMPANY OFFICIALS SEE GLARING ERRORS IN JUDGMENT AND PROCEDURES TO ACCOMPLISH THE OVERSEAS EXPANSION TOP MANAGEMENT THOUGHT THEY COULD DO IT BY FIAT IN A SLOWMOVING INDUSTRY WHERE TIME IS COUNTED IN DECADES NOT YEARS SAYS CYRUS FREEDHAM VICE CHAIRMAN OF BOOZ ALLEN & HAMILTON CONSULTANTS HIRED BY AMOCO TO ASSIST IN THE CHANGE AMOCO GRABBED UP TOO MANY LEASES IN TOO MANY COUNTRIES AND IN THE PROCESS SIGNED CONTRACTS COMMITTING CREWS TO CONTINUE DRILLING WELLS EVEN AFTER IT WAS CLEAR THERE WAS NO OIL COST OVERRUNS BECAME RAMPANT AND DRILLERS LIKE MR FLINN COMPLAIN THAT ONLY THIS YEAR HAVE HEADQUARTERS ENGINEERS STOPPED TRYING TO MICROMANAGE RIG OPERATIONS FROM HOUSTON SINCE AMOCO LAUNCHED ITS QUEST ITS OVERALL ANNUAL OIL PRODUCTION HAS PLUNGED 16 AND DESPITE SPENDING A TOTAL OF NEARLY 9 BILLION NOT COUNTING ACQUISITIONS ON EXPLORATION AND DEVELOPMENT OUTSIDE THE US ITS OVERSEAS OIL OUTPUT HAS SUNK MORE THAN 13 WHILE MANY OF ITS COMPETITORS HAVE AT LEAST MAINTAINED THEIR RESERVES AMOCO SELLS MORE OIL THAN IT IS FINDING AMOCO CHAIRMAN AND CHIEF EXECUTIVE H LAURANCE FULLER ASKED TO GRADE AMOCO'S OVERSEAS EXPLORATION PAUSES A MOMENT AND THEN SAYS I WOULD GIVE US A C AS I WOULD THE INDUSTRY BERNARD PICCHI A KIDDER PEABODY & CO OIL ANALYST WARNS THAT IF AMOCO DOESN'T GET BETTER FAST IT WILL GO THE WAY OF THE PTERODACTYL FORMER INDUSTRY GIANTS LIKE GULF OIL FACED EXTINCTION OR TAKEOVER IN SIMILAR CIRCUMSTANCES OBSERVES MARTIN ZIMMERMAN AN INTERNATIONAL VICE PRESIDENT FOR AMOCO THE 46YEAROLD MR ZIMMERMAN SAYS THAT OF THE 20 OIL COMPANIES THAT OFFERED HIM A JOB AFTER COLLEGE GRADUATION ONLY SEVEN STILL EXIST AMOCO FOUND ITSELF PLAYING CATCHUP TO LONGTIME GLOBAL PLAYERS WITH THE BEST PROSPECTS ALREADY TAKEN WE'RE PART OF THE SCENERY ACROSS THE WORLD SAYS MARK MOODYSTUART HEAD OF EXPLORATION FOR ROYAL DUTCH/SHELL GROUP SEATED IN HIS OFFICE NEAR A PAINTING OF A DUTCH EXPLORER WHO WAS SEEKING OIL IN BORNEO IN 1907 AMOCO'S ONE MAJOR FOREIGN SUCCESS THE EL MORGAN FIELD IT FOUND IN EGYPT IN 1967 IS DWINDLING WITH AGE THE COMPANY HASN'T MADE A COMPARABLE DISCOVERY SINCE AND THE RESULTS CAN BE SEEN IN OILFINDING COSTS IN THE PAST FIVE YEARS AMOCO HAS SPENT AN AVERAGE OF 742 FOR EVERY BARREL IT HAS FOUND OVERSEAS MORE THAN TWICE AS MUCH AS ROYAL DUTCH FINALLY LAST YEAR AMOCO EXECUTIVES BEGAN TO QUESTION THE SCATTERSHOT APPROACH ACCORDING TO DAVID WORK A GROUP VICE PRESIDENT CHARGED WITH FIXING THE FOREIGN OPERATIONS TRYING TO TURN THE COMPANY OVERNIGHT INTO AN INTERNATIONAL OIL COMPANY WASN'T WORKING THE WORLD IS LARGE WE CAN'T DO IT ALL MR WORK SAYS SO AMOCO DECIDED TO LEARN FROM OTHERS AND STUDIED EVERY OIL DISCOVERY ITS COMPETITORS MADE IN THE 1980S LEAFING THROUGH AN INCHANDAHALFTHICK BRIEFING BOOK MR WORK SAYS THAT WHILE AMOCO'S RECORD WAS DECIDEDLY WORSE THAN AVERAGE THE STUDY SHOWED EVERYONE HAD DIFFICULTY TRACKING DOWN ELEPHANTS THE INDUSTRY'S FRONTIER EXPLORATION YIELDED LARGE OIL DISCOVERIES 49 MILLION BARRELS ON AVERAGE BUT NOT ENOUGH OF THEM TO MAKE THEIR HIGH DEVELOPMENT RISKS AND COSTS WORTHWHILE ACCORDING TO THE STUDY EXPLORATION IN AREAS WHERE OIL ALREADY WAS BEING PRODUCED YIELDED SOMEWHAT SMALLER FIELDS AN AVERAGE OF 40 MILLION BARRELS BUT THE CHANCES OF FINDING THEM WERE NEARLY THREE TIMES AS HIGH THE STUDY BECAME THE FOUNDATION OF AMOCO'S NEW MORE CONSERVATIVE APPROACH WHILE THE BULK OF ITS EXPLORATION MONEY WILL STILL FLOW OVERSEAS AMOCO IS RETREATING FROM UNEXPLORED AREAS MANY COMPETITORS HAD FIGURED THAT OUT ALREADY MR MOODYSTUART OF ROYAL DUTCH SAYS WHEN YOU ASK WHAT NEW MAJOR PLAYS HAVE COME ABOUT IN THE PAST 10 YEARS YOU WIND UP WITH VERY FEW DOME ACQUISITION OVEROPTIMISM WAS THE CATALYST FOR MANY OF AMOCO'S WOES OIL PRICES ARE 30 LOWER THAN WHERE WE THOUGHT THEY'D BE GAS PRICES ARE 60 LOWER THAN ANTICIPATED SAYS PATRICK EARLY VICE CHAIRMAN THAT HE SAYS EXPLAINS WHY AMOCO'S 1988 ACQUISITION OF DOME PETROLEUM LTD IN CANADA HAS WREAKED SUCH HAVOC AMOCO BOUGHT DOME FOR 4 BILLION AND BECAME THE LARGEST NATURALGAS PRODUCER IN CANADA DOME'S RESERVES ALBEIT LARGE ARE SO WIDESPREAD ACROSS FROZEN WESTERN CANADA THAT THEY PROVED UNPROFITABLE AMOCO HAS RACKED UP LOSSES OF MORE THAN 750 MILLION FROM DOME OPERATIONS AND COME PERILOUSLY CLOSE TO DEFAULTING ON ITS TAKEOVER DEBT ONLY AFTER SEVERE RESTRUCTURING INCLUDING GETTING THE PARENT COMPANY IN CHICAGO TO USE ITS TRIPLEA CREDIT RATING TO GUARANTEE THE CANADIAN SUBSIDIARY'S DEBT TO AVOID DEFAULT IS DOME FINALLY EXPECTED TO CLIMB INTO THE BLACK THIS YEAR AN UPTICK IN NATURALGAS PRICES HAS ALSO HELPED MR EARLY ACKNOWLEDGES AMOCO RUSHED TO LEASE TOO MUCH ACREAGE AND SIGNING COMMITMENTS WITH HOST COUNTRIES TO DRILL A LARGE NUMBER OF WELLS BEFORE GEOLOGISTS COULD THOROUGHLY EXAMINE THE PROSPECTS HE SAYS ENGINEERS NOW SPEND MORE UPFRONT TIME BEFORE SPENDING MILLIONS OF DRILLING DOLLARS BUT AMOCO REMAINS STUCK WITH AN INVENTORY OF COUNTRIES WHERE IT HAS DRILLED DRY HOLES KNOWS THERE IS NO OIL BUT MUST KEEP DRILLING ANYWAY TO MEET TYPICAL INDUSTRY CONTRACTUAL OBLIGATIONS JOHN SUTLER A DRILLING ENGINEER HIRED DIRECTLY OUT OF WEST VIRGINIA UNIVERSITY TWO YEARS AGO TO WORK OVERSEAS SAYS ONE OF THE FIRST RIGS HE STEPPED ON DRILLED A WELL IN QATAR WHERE AMOCO HAD ALREADY SUNK EIGHT DRY HOLES BUT WAS CONTRACTUALLY COMMITTED TO NINE THERE'S NO HOPE ON THOSE KINDS OF PROSPECTS COMPLAINS KENNETH ARMAGOST A SENIOR DRILLING ENGINEER WEARING A WHITE GOLF SHIRT IMPRINTED WITH THE AMOCO SHIELD MEETING RECENTLY IN A MAPLINED INTERNATIONAL PREP ROOM IN HOUSTON MR ARMAGOST MR SUTLER AND MR FLINN THE SENIOR DRILLING FOREMAN REMIND EACH OTHER THAT THEY DRILL THE WELLS BUT COMPANY GEOLOGISTS AND MANAGERS PICK THE SITES WHY DON'T WE PLAN OUR BUSINESS BETTER SO WE DON'T GET STUCK IN THESE SITUATIONS THAT'S MY FRUSTRATION MR ARMAGOST SAYS TO COMBAT IT MESSRS FLINN ARMAGOST AND OTHERS ON THE TEAM BEGAN PREPARING LAST MARCH FOR A MALTA WELL SLATED TO BEGIN DRILLING IN SEPTEMBER THEY MEET EVERY TWO WEEKS WITH THE GEOLOGISTS WHO THINK THERE IS OIL THERE BUT WHO IN THE PAST REMAINED DISTANT FROM THE DRILLERS MR FLINN SAYS THAT IN PAST YEARS HE OFTEN WOULDN'T LEARN DETAILS ABOUT THE WELL UNTIL RIGHT BEFORE BOARDING THE AIRPLANE FLYING HIM TO IT OFFICIALS SAY LESSONS LEARNED FROM THE YOMBO WELL FIASCO ARE CRITICAL THE 1989 YOMBO DISCOVERY OFFSHORE FROM THE CONGO IS MR FLINN'S LONE FIND IN 29 ATTEMPTS BY THE TIME AMOCO HAD SPENT 380 MILLION DEVELOPING YOMBO ITS PROFITABILITY HAD NEARLY VANISHED BECAUSE OF COST OVERRUNS AND BECAUSE THE FIELD TURNED OUT TO BE A DRIBBLE NOT THE GIANT AMOCO THOUGHT ON TOP OF THAT AN OLD OIL TANKER AMOCO CONVERTED INTO A FLOATING SYSTEM TO DRAW UP THE OIL WOUND UP COSTING 170 MILLION 113 OVER BUDGET BECAUSE THE TANKER WAS IN SUCH POOR SHAPE TO START WITH AMOCO PLANS TO CONVERT ANOTHER TANKER TO USE IN A 15 BILLION DEVELOPMENT OF THE LIUHUA FIELD IN THE SOUTH CHINA SEA THE PROJECT MANAGER HOPES TO BEGIN PUMPING OIL BY 1996 AND THE YOMBO WELL WILL SERVE AS A BLUEPRINT FOR WHAT NOT TO DO AS AMOCO ADJUSTS ITS FOCUS OVERSEAS IT IS ENCOUNTERING WHAT COULD BE A NEW AGE IN THE OIL INDUSTRY SPARKED BY EPIC POLITICAL UPHEAVALS IN MUCH OF THE OILPRODUCING WORLD CHANGES IN THE FORMER SOVIET UNION EASTERN EUROPE AND LATIN AMERICA HAVE OPENED TO OIL COMPANIES 191 BILLION BARRELS OF RESERVESEQUAL TO SIX TIMES THE UNTAPPED CRUDE IN THE US AMOCO FIGURES THE COMPANY HAS NARROWED PROSPECT COUNTRIES BY 83 TO ABOUT 20 WHERE OIL PRODUCTION ALREADY EXISTS AND AMOCO THINKS IT HAS AN ADVANTAGE FOR EXAMPLE IT PLANS TO DRILL IN ROMANIA'S CARPATHIAN MOUNTAINS BECAUSE THE GEOLOGY REMINDS IT OF THE ROCKY MOUNTAINS AMOCO ALSO IS NEGOTIATING A MULTIBILLIONDOLLAR OIL DEVELOPMENT PROJECT IN THE AZERI SECTOR OF THE CASPIAN SEA WHERE IT HOPES TO EMPLOY TECHNOLOGY FROM THE GULF OF MEXICO BUT THAT PROJECT IS ON HOLD BECAUSE OF AZERBAIJAN'S CIVIL UNREST AS PART OF ITS MODERN RESPONSE TO A CHANGING WORLD AMOCO IS CHANGING ITS DECISION PROCESS WHICH MR ARMAGOST SAYS HAS BEEN AN OLDSCHOOL WAY OF DOING IT A REORGANIZATION THIS YEAR IS AIMED AT LOOSENING THE REINS ON THE PEOPLE IN THE FIELD THE PERSON WHO KNOWS MOST ABOUT WHAT'S GOING ON AT THE RIG IS THE GUY WHO IS SITTING THERE LOOKING AT IT MR FLINN SAYS AS AN EXAMPLE THE COMPANY POINTS TO COUNTRY MANAGER BRUCE BRAMLEY WHO RETURNED TO AMOCO AFTER FIVE YEARS WORKING AT SMALLER COMPANIES RUN IN A MORE EFFICIENT MANNER DRAWING ON THAT EXPERIENCE MR BRAMLEY RECENTLY HEADED DOWN THE ROAD FROM A DRILLING SITE IN SHARJAH ONE OF THE UNITED ARAB EMIRATES TO LEASE USED COMPRESSORS RATHER THAN WAIT NINE MONTHS FOR AMOCO HEADQUARTERS ENGINEERS AND PURCHASING AGENTS TO SHIP NEW ONES HIS ABILITY TO MAKE ONSITE DECISIONS ALSO PERMITTED MR BRAMLEY TO DRILL A WELL IN 30 DAYS RATHER THAN 35 SAVING 175000 HIS SECRET HE PAYS ROUGHNECKS A BONUS FOR FINISHING EARLY OUR MAN GOES WITH A SUITCASE OF MONEY AND HANDS IT TO EACH EMPLOYEE HE SAYS FORMER USSR OPTIMISTS SAY THE NEW REPUBLICS COULD SOMEDAY COMPETE WITH THE MIDDLE EAST EVERY BIG OIL COMPANY IS TALKING ABOUT PROJECTS BUT DICEY POLITICS HAVE MADE MOST LEERY OF SPENDING BILLIONS OF DOLLARS EVEN THOUGH THEY KNOW THE OIL IS THERE CHINA A BIG DISAPPOINTMENT THE INDUSTRY FRUITLESSLY POURED TIME AND MONEY INTO THE SOUTH CHINA SEA AND DIDN'T FIND MUCH BUT THE COUNTRY IS OPENING UP NEW TERRAIN AS A LURE FOR NEW INVESTMENT FAR EAST HOME TO SOME OF THE EARLIEST DISCOVERIES THIS CENTURY INDONESIA REMAINS A HOT SPOT FOR OIL AND GAS DEVELOPMENT NEW DISCOVERIES ABOUND IN MALAYSIA THAILAND AND PAPUA NEW GUINEA MIDDLE EAST STILL THE MOTHER LODE OF THE WORLD'S OIL RESERVES THIS REGION CONTAINS THE CHEAPEST AND LARGEST FIELDS IN PLACES LIKE YEMEN OMAN QATAR AND THE UNITED ARAB EMIRATES WESTERN COMPANIES CAN SHARE SOME DEVELOPMENT 9308250017 930825 HEARD ON THE STREET QVC NETWORK'S CONFERENCE CALL SETS THE TONE FOR INVESTMENT OPERATORS WITH DIRECT DIALING BY JOHNNIE L ROBERTS AND WILLIAM POWER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK ON WALL STREET IT'S NOT WHOM YOU KNOW THAT MATTERS IT'S WHICH PHONE CALLS YOU GET TO LISTEN IN ON HIGHFLYING QVC NETWORK IS AN EXAMPLE OF THAT AFTER ABOUT DOUBLING SINCE CEO BARRY DILLER ARRIVED THROUGH AN EQUITY STAKE IN MIDDECEMBER THE STOCK SLAMMED INTO A WALL THURSDAY EVEN THOUGH THE BIG HOMESHOPPING CONCERN ANNOUNCED AN 18 RISE IN QUARTERLY PERSHARE EARNINGS ON A 19 JUMP IN REVENUE THE SHARES DROPPED IN THREE STRAIGHT TRADING SESSIONS LOSING 7 OVERALL BEFORE REBOUNDING YESTERDAY TO 65 1/4 UP 1 1/8 WHY THE SHOW OF WEAKNESS THERE WAS ANOTHER EVENT THURSDAY THAT INTHEKNOW INVESTORS CARED MORE ABOUT THAN THE EARNINGS NAMELY A SERIES OF SEEMINGLY NEGATIVE PROJECTIONS MADE BY QVC IN A TELEPHONE CONFERENCE CALL WITH WALL STREET ANALYSTS IN THE CONFERENCE CALL WILLIAM COSTELLO CHIEF FINANCIAL OFFICER OF THE WEST CHESTER PA COMPANY MADE SEVERAL CAUTIOUS REMARKS ABOUT EARNINGS EXPECTATIONS HIS REMARKS ABOUT THE NEARTERM MOMENTUM WERE NEGATIVE ACCORDING TO A MONEY MANAGER FAMILIAR WITH THE PHONE CALL HE DISCLOSED THAT EARNINGS GROWTH COULD SLOW IN THE SECOND HALF OF THIS YEAR AND HE SAID NEXT YEAR'S PROFITS COULD BE PRESSURED BY HIGH SPENDING FOR INTERNATIONAL EXPANSION THIS WAS SOBERING INFORMATION FOR A STOCK THAT IS RICHLY PRICED AT 46 TIMES THE PAST YEAR'S EARNINGS AND ONCE WORD GOT OUT QVC BEGAN FALLING ON FRIDAY FOR EXAMPLE IT LOST 1 1/2 ON NEARLY TWICE THE NORMAL VOLUME OF 793700 SHARES IT IS STILL 54 BELOW ITS PRECONFERENCECALL PRICE EVEN WITH YESTERDAY'S ADVANCE SUCH CONFERENCE CALLS SEEM TO BE REPLACING PUBLIC MEETINGS AS THE VEHICLE OF CHOICE TO GET OUT BAD NEWS WHICH THEN FILTERS OUT THROUGH THE ANALYSTS TO SELECTED INVESTORS COMPANIES LIKE DOING THEM BECAUSE THEY'RE QUICKER AND CHEAPER THAN SETTING UP MEETINGS AND BY SCREENING THE CALLS THEY CAN TRY TO KEEP OUT ANALYSTS THEY DON'T LIKE THE CONFERENCE CALLS ARE TAKING THE PLACE OF THE MEETINGS THE DIFFERENCE IS SMALL INVESTORS VS PROFESSIONAL MONEY SAYS ONE NEW YORK INVESTOR WHO LIKES QVC STOCK BUT ONLY IF IT DRIFTS DOWN TO THE LOW 50S WALL STREET REMAINS LARGELY BULLISH ON QVC ZACKS INVESTMENT RESEARCH SHOWS TWO STRONG BUY RATINGS TWO BUYS THREE NEUTRALS INVESTORS ARE ENAMORED OF MR DILLER A TELEVISION PROGRAMMING ACE WHO NOT ONLY IS TOP EXECUTIVE BUT ALSO HOLDS A CONTROLLING STAKE ALONG WITH PARTNERS TELECOMMUNICATIONS AND COMCAST TO THE BULLS QVC SEEMS POISED TO EXPAND THE APPEAL OF LOWBROW HOME SHOPPING TO UPSCALE CONSUMERS WHILE THRIVING IN INTERACTIVE COMMUNICATIONS THE WIDELY HAILED TECHNOLOGY MEANT TO LET CONSUMERS COMMUNE WITH THE WORLD THROUGH THEIR TV SETS MR DILLER QUICKLY LURED SAK FIFTH AVENUE TO PITCH WARES ON THE NETWORK AND HAS ANNOUNCED PLANS TO LAUNCH Q2 A NEW LIFESTYLE CHANNEL QVC ALSO IS EXPANDING ABROAD THROUGH SEPARATE VENTURES WITH RUPERT MURDOCH'S BRITISH SATELLITE BROADCAST OPERATION AND WITH MEXICAN MEDIA GIANT GRUPO TELEVISA AWAITING THE NECESSARY CLEARANCES IS A PROPOSED MERGER OF QVC AND HOME SHOPPING NETWORK THE DEAL HOLDS POTENTIAL TO SLASH COSTS WHILE CREATING A HOMESHOPPING GIANT BUT SOME BULLS BEGAN TO STRAY AFTER QVC'S MR COSTELLO ALERTED THEM THAT FUTURE GROWTH WOULD HAVE A SHORTTERM COST ALTHOUGH QVC HASN'T YET PUT A FIGURE ON INVESTMENT SPENDING IT MAY HAVE AN IMPACT ON EARNINGS NEXT YEAR MOREOVER WHEN ANALYSTS ON THE CONFERENCE CALL INQUIRED ABOUT PROFIT FROM Q2 AND THE MEXICAN AND BRITISH VENTURES MR COSTELLO SAID THERE WON'T BE ANY NEXT YEAR QVC STILL HAS MANY FANS THEY BLAME THE STOCK'S DROP ON SHORTTERM PROFITTAKERS AND NEWER INVESTORS LONGTERM QVC HOLDERS SAY THEY NEVER BOUGHT THE STOCK FOR CURRENT EARNINGS THE COMPANY NEVER WANTS A NEGATIVE SURPRISE SAYS ANALYST CRAIG BIBB OF PAINEWEBBER MANAGEMENT DOES A GOOD JOB OF KEEPING EXPECTATIONS IN CHECK BUT SOMEONE NEW TO THE STORY MIGHT HAVE BEEN SPOOKED BY WHAT MR COSTELLO SAID HE AND OTHER BULLS REMAIN UNWAVERING BELIEVERS IN THE FUTURE OF ELECTRONIC RETAILING DELIVERED OVER THE NEW ELECTRONIC SUPERHIGHWAYS WE HAVEN'T SEEN ANY BENEFITS OF THE ELECTRONIC HIGHWAY TRANSLATE DOWN TO EARNINGS MR BIBB DECLARED BUT ELECTRONIC RETAILING WILL BE A KILLER APPLICATION FOR THE HIGHWAY DOWN THE ROAD SOME QVC FANS ALSO NOTE THAT SEVERAL OTHER HIGHFLYING STOCKS HAVE LOST ALTITUDE LATELY INCLUDING HOME DEPOT AND STARBUCKS THE MARKETS ARE SHOOTING HIGHP/E STOCKS SAID ONE ANALYST IT LOOKS LIKE THERE IS A ROTATION OUT OF WINNERS INTO LAGGARDS YEAR ENDED JAN 31 1993 AVERAGE DAILY TRADING VOLUME COMMON SHARES OUTSTANDING 9308250016 930825 ALCOHOL CONTENT IS CLEARED FOR LISTING ON BEER LABELS DENVER A FEDERAL APPEALS COURT UPHELD A LOWER COURT RULING THAT STRUCK DOWN A FEDERAL BAN ON ALCOHOL CONTENT LABELING OF BEER THE LOWER COURT RULING CLEARED THE WAY FOR BREWERS TO BEGIN NOTING THE ALCOHOL CONTENT ON BEER LABELS ANHEUSERBUSCH COS SAID IN MARCH THAT IT WOULD BEGIN DOING SO RIGHT AWAY IN SOME STATES OTHER BREWERS INCLUDING COORS BREWING CO A UNIT OF ADOLPH COORS CO SAID THEY WOULD WAIT UNTIL THE REVIEW BY THE APPEALS COURT AND UNTIL FEDERAL REGULATORS DEVELOP MANDATORY UNIFORM LABELING RULES TO COVER ALL 50 STATES COORS BROUGHT THE ORIGINAL SUIT IN FEDERAL COURT IN DENVER SEEKING TO OVERTURN A BUREAU OF ALCOHOL TOBACCO AND FIREARMS REGULATION PROHIBITING THE CONTENT LABELING THE RULE WAS ADOPTED SHORTLY AFTER PROHIBITION AMID CONCERN THAT STRENGTH WARS WOULD BREAK OUT AMONG BREWERS TRYING TO TOUT THEIR BEERS AS THE STRONGEST COORS AND OTHER BREWERS ARGUED THAT TODAY LOW ALCOHOL CONTENT IS MORE IMPORTANT TO SOME CONSUMERS THAN HIGH ALCOHOL CONTENT COORS ALSO TOLD THE DISTRICT COURT THAT IT HAD SUFFERED FROM RUMORS ITS BEERS WERE LOWER IN ALCOHOL THAN OTHER BIG NATIONAL BRANDS 9308250015 930825 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN GET MOVING THE NEW TAX LAW WILL MAKE MANY TRANSFERS MORE EXPENSIVE TOUGH NEW LIMITS ON MOVINGEXPENSE DEDUCTIONS TAKE EFFECT NEXT YEAR THUS ACCOUNTANTS URGE MANY CLIENTS PLANNING TRANSFERS SOON ESPECIALLY INDIVIDUALS PAYING THEIR OWN WAY TO CONSIDER MOVING THIS YEAR IF POSSIBLE YOU MAY WANT TO PAY OR INCUR AS MANY MOVING EXPENSES AS POSSIBLE BY DEC 31 SAYS NORMAN BARKER OF THE ACCOUNTING FIRM OF ERNST & YOUNG CONGRESS'S JOINT TAX COMMITTEE ESTIMATES THE CHANGES WILL RAISE 23 BILLION THROUGH 1998 THE NEW LAW WON'T ALLOW DEDUCTIONS FOR MEALS ALSO EXCLUDED COSTS OF HOUSEHUNTING TRIPS TEMPORARY LIVING EXPENSES UP TO 30 DAYS AND COSTS RELATED TO SELLING A HOME SETTLING AN UNEXPIRED LEASE OR GETTING A NEW HOME ALSO THE MILEAGE THRESHOLD RISES TO 50 MILES FROM 35 BEFORE BUT SIDNEY KESS A LAWYER AND ACCOUNTANT NOTES THAT UNREIMBURSED COSTS WILL BE SUBTRACTED IN COMPUTING ADJUSTED GROSS INCOME RATHER THAN AS AN ITEMIZED DEDUCTION AND COSTS PAID OR REIMBURSED BY THE TAXPAYER'S EMPLOYER WILL BE EXCLUDABLE FROM GROSS INCOME COSTS OF MOVING HOUSEHOLD GOODS AND TRAVELING FROM THE OLD HOME WILL REMAIN DEDUCTIBLE MORE ELECTIONS MIGHTN'T BE SUCH A BAD IDEA AFTER ALL TAKE NOTE TAXOPHOBES IN GUBERNATORIAL ELECTION YEARS STATE TAX INCREASES ARE SIGNIFICANTLY SMALLER THAN AT OTHER TIMES SAYS JAMES M POTERBA AN MIT ECONOMIST HIS STUDY ISSUED BY THE NATIONAL BUREAU OF ECONOMIC RESEARCH ANALYZES STATE RESPONSES TO FISCAL CRISES IN THE LATE 1980S WHEN HARD TIMES AND SURGING SPENDING LED TO BIG STATE BUDGET DEFICITS BUT THE REPORT ALSO SHOWS STATE SPENDING CUTS ARE SIGNIFICANTLY SMALLER IN GUBERNATORIAL ELECTION YEARS THAN AT OTHER TIMES ALSO STATES RESPOND MUCH MORE QUICKLY TO BUDGET DEFICITS WHEN A SINGLE PARTY CONTROLS THE LEGISLATURE AND OCCUPIES THE GOVERNOR'S MANSION THAN WHEN CONTROL IS DIVIDED AMONG THE PARTIES MR POTERBA SAYS AND STATE LAWS LIMITING TAXES AND SPENDING OR BANNING DEFICIT CARRYOVERS STRONGLY INFLUENCE BOTH THE SPEED AND NATURE OF STATE RESPONSES TO UNEXPECTED RED INK BIG CASES DRAW CLOSER SCRUTINY FROM IRS LAWYERS IN WASHINGTON CONCERNED BY LOSSES IN SEVERAL MAJOR COURT BATTLES THE IRS IS FOCUSING MORE ATTENTION ON CASES INVOLVING THE LARGEST AMOUNTS OF MONEY IRS LAWYERS IN WASHINGTON ARE WORKING MORE CLOSELY WITH FIELDOFFICE ATTORNEYS ON 33 ESPECIALLY LARGE CASES SAYS DAVID L JORDAN ACTING CHIEF COUNSEL THE IRS NEEDS TO GET OUR ACT TOGETHER MR JORDAN SAYS I HAVE NOT BEEN REAL HAPPY WITH OUR SUCCESS RATE IN LARGE CASES OF MORE THAN 38000 CASES NOW PENDING IN TAX COURT LESS THAN 1 INVOLVE ALLEGED TAX DEFICIENCIES OF MORE THAN 10 MILLION MR JORDAN SAYS THAT 1 REPRESENTS ABOUT 80 OF THE TOTAL DOLLARS AT STAKE IN ALL THOSE CASES HOW WILL PRIVATE LAWYERS KNOW IF THEIR CASE IS ONE OF THE 33 THE IRS HAS SINGLED OUT FOR SPECIAL ATTENTION ALL YOU HAVE TO DO IS ASK MR JORDAN REPLIES ALSO HE SAYS IT SHOULD BE OBVIOUS BECAUSE YOU WILL HAVE A NATIONALOFFICE ATTORNEY IN YOUR PRESENCE THANKS CONGRESS THE COMPLEX NEW TAX LAW HELPS SPARK RENEWED INVESTOR INTEREST IN THE STOCK OF H&R BLOCK THE BIG TAXRETURN PREPARATION COMPANY BLOCK'S STOCK CLOSED YESTERDAY AT 38625 UP ABOUT 11 FROM AS RECENTLY AS JULY 22 ZOE BAIRD EFFECT ACCOUNTANTS CITE THE INTENSE PUBLICITY MS BAIRD RECEIVED EARLIER THIS YEAR AS ONE REASON MORE PEOPLE ARE FILING QUARTERLY TAX RETURNS FOR HOUSEHOLD EMPLOYEES THE IRS SAYS IT EXPECTS TO RECEIVE ABOUT 15 MILLION OF THESE RETURNS THIS YEAR UP 5 FROM A YEAR AGO LUXURYTAX REPEAL WILL OFFER LITTLE RESPITE FOR THE BOAT BUSINESS SAYS JILL S KRUTICK A SALOMON BROTHERS ANALYST REPEAL MAY HELP LIFT SALES OF NEW LUXURY YACHTS NEXT SPRING BUT 1994 WILL BRING ONLY SMALL PROGRESS FOR THE INDUSTRY A SALOMON REPORT PREDICTS PAUL RONAN OF JOHN ALDEN YACHT BROKERAGE IN BOSTON AGREES THAT REPORT HITS IT RIGHT ON THE NAIL SLOPPY RECORDS AT THE IRS DRAW FIRE FROM A CONGRESSIONAL WATCHDOG AGENCY THE GENERAL ACCOUNTING OFFICE ACCUSES THE IRS OF MAKING MANY ERRORS AND OMISSIONS IN ITS INVENTORY OF COMPUTER EQUIPMENT AND SOFTWARE A GAO REPORT SAYS MANY ITEMS ALSO WERE OVERVALUED FOR EXAMPLE THE GAO FOUND THAT ONE VIDEO DISPLAY TERMINAL COSTING 752 WAS VALUED IN IRS INVENTORY RECORDS AT 56 MILLION DESPITE RECENT IMPROVEMENT EFFORTS THE GAO SAYS THE IRS'S AUTOMATED DATAPROCESSING INVENTORY RECORDS GENERALLY ARE UNRELIABLE FOR MANAGING AND REPORTING ON THESE ASSETS THE GAO ALLEGES THE IRS PAID 36000 FOR A MAINTENANCE CONTRACT ON A MINICOMPUTER THAT HAD NOT BEEN USED FOR THREE YEARS BECAUSE MAINTENANCECONTRACT OFFICERS COULD NOT READILY DETERMINE WHAT EQUIPMENT WAS STILL IN USE AN IRS OFFICIAL CONFIRMS MISTAKES WERE MADE AND THAT WE AGREE WITH THE GAO'S GENERAL CONCERNS THE IRS HAS BEGUN EFFORTS TO REMEDY THE SITUATION WROTE C MORGAN KINGHORN THE IRS'S ACTING CHIEF FINANCIAL OFFICER BRIEFS UNDER THE NEW LAW SOME WEALTHY SELFEMPLOYED NEW YORK CITY RESIDENTS WILL HAVE A COMBINED US STATE AND LOCAL MARGINAL TAX RATE OF ABOUT 55 ERNST & YOUNG SAYS THE TREASURY WILL ANNOUNCE TODAY THAT CYNTHIA GIBSON BEERBOWER A PARTNER AT SIMPSON THACHER & BARTLETT WILL BECOME ITS INTERNATIONAL TAX COUNSEL FILLING A SLOT VACANT SINCE FEBRUARY 9308250014 930825 TRADE SANCTIONS AGAINST CHINA PLANNED BY US PENALTIES ARE FOR VIOLATING AGREEMENT BY SELLING MISSILE PARTS TO PAKISTAN BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS EXPECTED TO IMPOSE TRADE SANCTIONS ON CHINA FOR VIOLATING PLEDGES BY SELLING CERTAIN MISSILE TECHNOLOGY TO PAKISTAN US OFFICIALS SAID THE PENALTIES COULD BE ANNOUNCED AS EARLY AS THIS WEEK AFTER BEIJING HAS BEEN NOTIFIED OF THE DECISION US OFFICIALS HAVE LONG SUSPECTED THAT CHINA HAS BEEN SHIPPING TO PAKISTAN PARTS OF THE M11 BALLISTIC MISSILE WHICH CAN CARRY A 1000POUND NUCLEAR WARHEAD AS FAR AS 186 MILES A US OFFICIAL SAID THE SANCTIONS COULD BAR SALES OF CERTAIN HIGHTECHNOLOGY ITEMS INCLUDING SATELLITE TECHNOLOGY THE OFFICIAL ADDED THAT THE SALES INVOLVED COULD TOTAL HUNDREDS OF MILLIONS OF DOLLARS ACCORDING TO US OFFICIALS THE M11 MISSILE SALE WOULD VIOLATE GUIDELINES SET BY THE MISSILE TECHNOLOGY CONTROL REGIME CHINA PROMISED THE BUSH ADMINISTRATION LAST YEAR THAT IT WOULD ABIDE BY THE ACCORD IN WHICH SUPPLIER NATIONS AGREE TO PROHIBIT THE SALE OF CERTAIN TECHNOLOGIES TO OTHER COUNTRIES IN TESTIMONY IN MAY BEFORE A JOINT HEARING OF SEVERAL HOUSE FOREIGN AFFAIRS SUBCOMMITTEES GARY MILHOLLIN DIRECTOR OF THE WISCONSIN PROJECT ON NUCLEAR ARMS CONTROL WARNED OF THE CONSEQUENCES OF SUCH SALES SINCE PAKISTAN CAN ALSO MAKE NUCLEAR WARHEADS CHINA IS TAKING INDIA AND PAKISTAN ANOTHER STEP CLOSER TO A POSSIBLE NUCLEAR WAR WHEN PRESIDENT CLINTON RENEWED CHINA'S MOST FAVORED NATION TRADING STATUS IN MAY ASKING BEIJING FOR HUMAN RIGHTS IMPROVEMENTS IN RETURN HE SAID THE US WOULD MONITOR CHINA CLOSELY TO MAKE SURE IT FULFILLED OTHER COMMITMENTS INCLUDING ADHERENCE TO THE ARMSCONTROL REGIME BUT THERE ARE GROWING COMPLAINTS FROM HUMANRIGHTS GROUPS AND OTHERS THAT CHINA'S OVERALL PERFORMANCE REMAINS BELOW PAR IN AN INTERVIEW LAST WEEK MR MILHOLLIN SAID THAT CHINA ALSO IS VIOLATING OR SKIRTING THE INTERNATIONAL LAW BY SUPPLYING MISSILE TECHNOLOGY AND MANUFACTURING CAPABILITY TO SUCH NATIONS AS SYRIA AND IRAN THOSE TWO NATIONS ARE ON A US LIST OF GOVERNMENTS THAT SUPPORT INTERNATIONAL TERRORISM ASIA WATCH A PRIVATE HUMANRIGHTS MONITORING GROUP PLANS TO RELEASE A REPORT SOON DOCUMENTING MORE THAN 100 POLITICAL ARRESTS AND TRIALS OVER THE PAST 18 MONTHS INCLUDING SEVERAL SINCE MR CLINTON EXTENDED CHINA'S TRADING STATUS IN MAY BEIJING ALSO HASN'T LIVED UP TO AN AGREEMENT TO PERMIT US OFFICIALS TO MONITOR WHETHER IT IS EXPORTING TO THE US PRODUCTS MADE BY PRISON LABOR TO UNDERSCORE ITS CONCERN THE ADMINISTRATION WANTS TO SEND ASSISTANT SECRETARY OF STATE JOHN SHATTUCK TO CHINA WITHIN A FEW WEEKS MR SHATTUCK PLANS TO DISCUSS HUMAN RIGHTS ISSUES WITH CHINESE OFFICIALS AND REMIND THEM THAT CONGRESS IS REQUESTING THAT THE ADMINISTRATION SEND IT A SIXMONTH PROGRESS REPORT ON CHINA'S HUMAN RIGHTS BEHAVIOR IF CHINA DOESN'T SHOW IMPROVEMENT IT WOULD BE DIFFICULT FOR THE ADMINISTRATION TO RENEW BEIJING'S TRADE STATUS NEXT YEAR SO FAR CHINA HASN'T AGREED TO A DATE FOR MR SHATTUCK'S TRIP 9308250013 930825 BUSINESS BRIEFS METROMEDIA COMMUNICATIONS CORP SIGNED A FIVEYEAR 22 MILLION CONTRACT TO PROVIDE LONGDISTANCE PHONE SERVICES TO MGM GRAND HOTEL INC A UNIT OF MGM GRAND INC A CASINO AND ENTERTAINMENT RESORT HOLIDAY INN WORLDWIDE A UNIT OF BASS PLC AGREED WITH INN REALTY HOTEL VENTURES LTD TO DEVELOP 70 FRANCHISED HOTELS IN INDIA DURING THE NEXT 10 YEARS ROCKWELL INTERNATIONAL CORP WILL BUILD A PLANT IN QUERETARO MEXICO ABOUT 120 MILES NORTHWEST OF MEXICO CITY TO SUPPORT ITS AUTOMOTIVE SYSTEMS BUSINESS IN THE MEXICAN MARKET ALCO STANDARD CORP A 7 BILLION PAPER AND OFFICE PRODUCTS DISTRIBUTION COMPANY ACQUIRED PIPPIN PACKAGING PRODUCTS INC EL PASO TEXAS A MARKETER OF SPECIALTY PACKAGING PRODUCTS AND EQUIPMENT TERMS WEREN'T DISCLOSED DIGITAL EQUIPMENT CORP MAYNARD MASS AGREED TO SELL ITS WESTMINSTER FACILITY TO SIMPLEX TIME RECORDER CO A GARDNER MASSBASED FIRE ALARM AND TIME RECORDING SYSTEMS MANUFACTURER TERMS WEREN'T DISCLOSED 9308250012 930825 ABREAST OF THE MARKET INDUSTRIAL AVERAGE JUMPS 3298 TO A RECORD AS INTEREST RATES FALL BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS SURGED TO RECORDS AMID FALLING INTEREST RATES AND STRONG PROFITS FOR A HEAVY EQUIPMENT MAKER ANALYSTS SAID PRICES ARE HEADED EVEN HIGHER IN COMING WEEKS DESPITE GROWING CONCERNS THAT THE STOCK MARKET IS REACHING HEADY LEVELS THIS IS THE BULL MARKET THAT EVERYBODY LOVES TO HATE DECLARED STEFAN ABRAMS DIRECTOR OF EQUITY STRATEGY AT TRUST CO OF THE WEST IN LOS ANGELES THE DOW JONES INDUSTRIAL AVERAGE CATAPULTED 3298 POINTS TO 363896 CONVINCINGLY SMASHING THROUGH ITS OLD RECORD OF 361548 STANDARD & POOR'S 500STOCK INDEX LEAPT 454 POINTS TO 45977 A NEW HIGH AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 224 TO 25515 A RECORD OTHER SPECIALIZED STOCK MARKET BAROMETERS ALSO FORGED AHEAD THE DOW JONES TRANSPORTATION AVERAGE SOARED 1816 TO 164971 AND THE DOW JONES UTILITY AVERAGE CLIMBED 185 TO A RECORD 25290 VOLUME WAS 263056950 SHARES UP FROM MONDAY'S 210187010 THERE WERE 1301 ADVANCERS AND 698 DECLINERS STOCKS STARTED RISING EARLY IN THE DAY BUOYED BY NEWS THAT DEERE & CO'S THIRDQUARTER PROFIT SOARED TO 131 A SHARE FROM 12 CENTS A SHARE A YEAR AGO WELL ABOVE ANALYSTS' ESTIMATES MOMENTS BEFORE THE MARKET CLOSED THOUGH DEERE WARNED THAT FISCAL FOURTHQUARTER EARNINGS WON'T BE AS STRONG THE BULLISH EARNINGS NEWS FROM THE MOLINE ILL FARM EQUIPMENT MAKER HELPED TO BOOST A HOST OF ECONOMICALLY SENSITIVE STOCKS DEERE RALLIED 5 1/4 TO 74 CATERPILLAR 1 3/4 TO 82 3/8 CUMMINS ENGINE 2 3/8 TO 82 7/8 INTERNATIONAL PAPER 1 1/8 TO 68 AND USXUS STEEL 1 TO 32 5/8 DESPITE THE EXTREMELY SLUGGISH PACE OF TOTAL ECONOMIC GROWTH CORPORATE PROFITS ARE REALLY DOING QUITE WELL NOTED MR ABRAMS THE RALLY IN STOCKS ACCELERATED IN THE AFTERNOON THANKS TO FALLING INTEREST RATES AND NEWS OF ROBUST CAR SALES IN MIDAUGUST THE YIELD ON THE GOVERNMENT'S 30YEAR BOND FELL TO 619 THE RECORD LOW SINCE THE GOVERNMENT BEGAN REGULAR SALES OF 30YEAR BONDS IN 1977 AND AFTER LAPSING RECENTLY CAR SALES BY THE NATION'S AUTO MAKERS RETURNED TO THE BUOYANT LEVELS SEEN IN MAY AND JUNE THAT WAS GOOD NEWS FOR AUTO STOCKS GENERAL MOTORS CLIMBED 1 5/8 TO 46 3/4 CHRYSLER 7/8 TO 42 1/4 AND FORD MOTOR 1 5/8 TO 51 3/4 BYRON WIEN INVESTMENT STRATEGIST AT MORGAN STANLEY SAID THAT AS STOCKS HIT NEW HIGHS EVERY DAY INVESTORS WHO HAVE BEEN BEARISH ON THE MARKET ARE THROWING IN THE TOWEL BUT INSTEAD OF SNAPPING UP THE MARKET'S PRICIER OFFERINGS THEY ARE FLOCKING TO SOME OF THE BEATENUP GROWTH STOCKS AS SOME OF THESE BEARS CAPITULATE THEY ARE SAYING I AM GOING TO BUY SOME OF YESTERDAY'S HEROES' SAID MR WIEN THAT EXPLAINS WHY THE S&P WHICH HAS BEEN THE LAGGING BEHIND THE DOW JONES INDUSTRIALS GAINED MOMENTUM YESTERDAY SAID MR WIEN THE S&P IS HEAVILY WEIGHTED TOWARD CONSUMER NONDURABLE STOCKS STILL NOT ALL GROWTH STOCKS BENEFITED DRUG MAKERS FOR INSTANCE LOST GROUND FOR THE SECOND STRAIGHT DAY MERCK SLIPPED 1/4 TO 32 1/4 PFIZER 3/4 TO 62 AND JOHNSON & JOHNSON 3/8 TO 40 TRANSPORTATION STOCKS SIZZLED HELPED BY FALLING OIL PRICES UAL THE PARENT OF UNITED AIRLINES VAULTED 3 5/8 TO 146 3/8 AMR AMERICAN AIRLINES' PARENT ROSE 3/4 TO 65 7/8 AND CSX CLIMBED 1 3/4 TO 77 3/8 HOME DEPOT WAS THE MOST ACTIVE STOCK ON THE BIG BOARD RISING 1/8 TO 41 1/8 THE COMPANY SAID IT WILL BEGIN TESTING A FOOD SERVICE CALLED DEPOT DINER AT ABOUT 16 RETAIL STORES AS EARLY AS THIS FALL ALBERTSON'S FELL 1/2 TO 55 1/2 SMITH BARNEY SHEARSON DOWNGRADED THE GROCERY CHAIN'S STOCK TO NEUTRAL FROM OUTPERFORM BUT SYSCO A FOOD DISTRIBUTOR ENDED UNCHANGED AT 29 3/4 AFTER A SIMILAR DOWNGRADE BY SMITH BARNEY SHEARSON BEVERLY ENTERPRISES DROPPED 3/8 TO 10 FALLING FOR THE SECOND STRAIGHT DAY THE HEALTHCARE CONCERN SAID IT EXPECTS TO REPORT A DROP IN REVENUE BECAUSE OF LOWERTHANEXPECTED MEDICAID RATE INCREASES PLUM CREEK TIMBER SANK 2 1/4 TO 55 1/4 MERRILL LYNCH LOWERED ITS INTERMEDIATE AND LONGTERM RATINGS ON THE COMPANY TO NEUTRAL FROM ABOVE AVERAGE INTERNATIONAL RECTIFIER SLID 3/4 TO 12 1/8 THE SEMICONDUCTOR CONCERN'S FOURTHQUARTER PROFIT FELL TO FOUR CENTS A SHARE FROM FIVE CENTS A SHARE A YEAR AGO THE EARNINGS WERE LOWER THAN ANALYSTS' ESTIMATES MARVEL ENTERTAINMENT ADDED 3/4 TO 41 7/8 SG WARBURG ANALYST LISBETH BARRON DOWNGRADED HER RATING ON THE COMIC BOOK COMPANY TO HOLD FROM BUY THE AMERICAN STOCK EXCHANGE'S MARKET VALUE INDEX ADVANCED 469 POINTS TO 45320 A RECORD THERE WERE 346 ADVANCERS AND 248 DECLINERS 9308250011 930825 RETAILING JAMES BOND HITS THE SUPERMARKET STORES SNOOP ON SHOPPERS' HABITS TO BOOST SALES BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL MORE SUPERMARKETS ARE SPYING ON THEIR CUSTOMERS BUT THIS TIME INSTEAD OF TRYING TO SPOT SHOPLIFTERS THEY'RE LOOKING FOR WAYS TO INCREASE SALES NO LONGER CONTENT WITH RUDIMENTARY SURVEYS AT THE CHECKOUT HUNDREDS OF RETAILERS NATIONWIDE ARE TURNING TO ELECTRONIC AND INFRARED SURVEILLANCE EQUIPMENT WITH NAMES LIKE VIDEOCART AND SHOPPERTRAK SOME EVEN CONDUCT OLDFASHIONED STAKEOUTS COMPLETE WITH WALKIETALKIES FROM CATWALKS IN THE STORES THE GOAL IS TO PROVIDE RETAILERS WITH DATA ABOUT SHOPPERS' TRAFFIC PATTERNS THAT CAN BE USED TO CHANGE BUYING HABITS TAKE BASHAS' MARKETS INC IN CHANDLER ARIZ A STUDY SHOWED THAT ONLY 18 OF THE GROCERY STORE'S CUSTOMERS EVER WENT DOWN THE AISLE WITH GREETING CARDS WHICH ARE HIGHPROFIT ITEMS SO GEORGE FISCUS THE STORELAYOUT MANAGER MOVED THE SECTION SANDWICHING IT BETWEEN THE FLORAL DEPARTMENT AND AN AISLE WITH PEANUT BUTTER JELLY AND HEALTH FOODS THAT REGULARLY DREW 62 OF THE STORE'S TRAFFIC NESTLED IN THEIR NEW HOME THE GREETING CARDS SHOWED A SECONDQUARTER SALES JUMP OF 40 BASED ON YOUR GUT FEELINGS OF SALES YOU MAY THINK AN AISLE IS A BIG DRAW SAYS MR FISCUS BUT WITH THE NEW KINDS OF TRAFFICPATTERN RESEARCH AVAILABLE HE SAYS YOU CAN REALLY SEE WHAT'S HOT AND WHAT'S NOT TRACKING CONSUMERS' EVERY MOVE IS GIVING RETAILERS BOTH REVEALING STATISTICAL DETAIL AND NEW INSIGHTS THE RESEARCH EFFORTS SOME BEGINNING TWO YEARS AGO HAVE ALSO TURNED UP SOME SURPRISES BY PEERING FROM THE CATWALKS AT 1600 SHOPPERS RESEARCHERS FOR MARSH SUPERMARKETS UNEARTHED A TROUBLING TREND PEOPLE HEAVILY SHOPPED THE PERIPHERY OF THE STORE THE PRODUCE DAIRY AND MEAT SECTIONS BUT FREQUENTLY CIRCUMVENTED THE CORE DRYGOODS SECTION THAT TAKES UP THE BULK OF STORE SPACE THE INDIANA STORE CHAIN'S INNER AISLES DREW ONLY 13 TO 30 OF THE TRAFFIC WHILE THE PERIPHERY ACCOUNTED FOR AS MUCH AS 80 VIDEOCART INC A CHICAGO COMPANY THAT USES INFRARED SENSORS IN STORE CEILINGS TO TRACK SHOPPING CARTS HAS SPOTTED A LOT OF DIPPERS THESE SHOPPERS PARK THEIR CARTS AT THE ENDS OF AISLES AND THEN WALK DOWN FILLING THEIR ARMS WITH ITEMS FROM THE SHELVES AS THEY GO RETAILERS FIGURE SUCH SHOPPERS PROBABLY BUY LESS BECAUSE THEY ARE LIMITED BY WHAT THEY CAN CARRY CERTAIN DEPARTMENTS DRAW HUGE NUMBERS OF PEOPLE BUT THAT DOESN'T GUARANTEE PROPORTIONATE SALES A STUDY BY THE FOOD MARKETING INSTITUTE TRADE GROUP SHOWS BY RETRACING THE STEPS OF 2400 SHOPPERS AND CHECKING WHAT ENDED UP IN THEIR GROCERY CARTS THE INSTITUTE LEARNED FOR INSTANCE THAT 77 OF PEOPLE WALKED THROUGH THE BAKERY DEPARTMENT BUT ONLY A THIRD ACTUALLY BOUGHT ANYTHING THERE A STUDY OF PROCTER & GAMBLE CO PRODUCTS IN KMART CORP STORES FOUND THAT SALES ROSE SHARPLY WHEN ITEMS LIKE COFFEE AND TOOTHPASTE WERE PLACED OUTSIDE THEIR NORMAL AISLES ON DISPLAY RACKS WITH NO COUPONS OR PRICE CUTS SALES OF THE NEWLY LOCATED TOOTHPASTE ROSE AS MUCH AS 119 OVER A THREEWEEK TEST PERIOD WHILE COFFEE SALES SOARED MORE THAN 500 THIS KIND OF RESEARCH IN HAND MARKETERS BELIEVE THEY ARE BEGINNING TO UNRAVEL SOME OF THE MYSTERIES OF PRODUCT LOCATION AND PURCHASE HABITS WE'RE NO LONGER GUESSING IF LOCATION REALLY MATTERS SAYS RICHARD BLATT EXECUTIVE DIRECTOR OF THE POINTOFPURCHASE ADVERTISING INSTITUTE A TRADE ASSOCIATION THAT SPONSORED THE P&G STUDY WE NOW HAVE STATISTICAL PROOF ADDS WILLARD BISHOP A FOODRETAILING CONSULTANT IN BARRINGTON ILL THIS IS LIKE THE DEAD SEA SCROLLS OF THE GROCERY BUSINESS SO FAR ATTEMPTS TO USE THE DATA HAVE BEEN MOSTLY EXPERIMENTAL AND SOMETIMES THE INFORMATION DOES LITTLE MORE THAN CONFIRM THE INTUITION OF THE RETAILER AN ASTUTE GROCERY BUYER OR MERCHANDISER OFTEN KNOWS WHICH SECTIONS ARE MOST HEAVILY TRAVELED BUT THE REAL VALUE COMES FROM BEING ABLE TO MEASURE THE EFFECTS OF ALTERING DISPLAY SPACE OR MOVING PRODUCTS FROM AISLE TO AISLE BY STUDYING TRAFFIC PATTERNS YOU CAN TELL WHAT WORKS AND WHAT DOESN'T SAYS MICHAEL SANSOLO EDITOR OF PROGRESSIVE GROCER MAGAZINE THE DATA CAN ALSO HELP STORES PINPOINT DEAD SPOTS OR INFREQUENTLY VISITED SECTIONS AND REVEAL SOME MERCHANDISING MISSTEPS ONE SOUTHERN GROCERY CHAIN NOTICED THAT FOOT TRAFFIC IN THE IMPORTANT AND PROFITABLE PRODUCE AREA BEGAN FALLING OFF IN ONE OF ITS STORES BUT NOT ANOTHER EVEN THOUGH BOTH HAD IDENTICAL LAYOUTS LOOKING INTO IT VIDEOCART DISCOVERED THAT A MANAGER IN THE PROBLEM STORE HAD INSTALLED A MINISALAD BAR NEAR THE PRODUCE SECTION THAT WAS DIVERTING PEOPLE MARSH SUPERMARKETS CONCERNED BY ITS FINDING THAT INNERAISLE TRAFFIC WAS MUCH LOWER THAN IT HAD THOUGHT HAS BEEN SEEKING WAYS TO CHANGE SHOPPERS' HABITS WORKING WITH A COMPANY THAT INSTALLS VIDEO MONITORS IN STORES TO PLAY COMMERCIALS MARSH LAST DECEMBER BEGAN PLACING THE TVS IN THE PERIPHERAL SHOPPING AREA BY FEATURING ADS WITH CENTERSTORE ITEMS LIKE QUAKER OATS CEREALS AND LITTLE FRISKIES CAT FOOD MARSH IS TRYING TO REDIRECT SHOPPERS SAYS MARK HECKMAN THE CHAIN'S DIRECTOR OF MARKET RESEARCH ALTHOUGH PRIMARILY A TOOL FOR RETAILERS NOW TRAFFIC ANALYSIS IS BEING USED BY CONSUMERPRODUCT COMPANIES AS WELL ONE TRAFFIC STUDY SHOWED THAT SHOPPERS OFTEN ZIP THROUGH THE SNACK AISLE SPENDING ONLY 427 SECONDS THERE WHILE THEY SPEND MORE THAN TWICE THAT IN THE COFFEE AISLE AT A KROGER CO STORE IN ATLANTA PEPSICO INC'S FRITOLAY UNIT IS TRYING TO RAISE ITS SALES ODDS BY ADVERTISING ITS CHIPS IN THE COFFEE AISLE OVER JARS OF NESTEA AND MAXWELL HOUSE A RED SIGN FLASHES AMERICA YOUR CHIP HAS COME IN AND SUGGESTS THAT SHOPPERS PICK UP A BAG OF DORITOS PEPSICOLA CO REALIZING THAT ONLY ABOUT 35 OF SHOPPERS WALK THE SOFTDRINK AISLE IS TRYING TO SNEAK INTO THE WELLTRAVELED BAKERY DEPARTMENT THE COMPANY HAS BEEN TESTING A PROGRAM WITH THE SLOGAN PEPSI'S NEWEST BREADWINNER TO PLACE PEPSI DISPENSERS IN THE UNUSED SPACE UNDER BAKERY TABLES WITH ITEMS LIKE HOTDOG BUNS WITHOUT SUCH SECONDARY SELLING OPPORTUNITIES WE'RE MISSING 65 OUT OF 10 CONSUMERS SAYS ERIC FOSS PEPSI'S VICE PRESIDENT RETAIL CHANNELS SOME MARKETERS SEE A DANGER IN MIXING TOO MANY DISPARATE PRODUCTS ALREADY HARRIED SHOPPERS COULD REBEL AGAINST A MARKET THAT SEEMS CONFUSING AND UNORGANIZED AND SOME RETAILERS EXPERIMENTING WITH SUCH PROGRAMS ARE SURVEYING CUSTOMERS TO MONITOR THAT CONCERN SAYS MR BISHOP THE FOODRETAIL CONSULTANT A CRAZYQUILT PATTERN ISN'T CONSUMER FRIENDLY BUT WITH SMALL MARGINS FOOD RETAILERS ARE HOPING TO USE THE CONSUMER TRACKING TO RAISE PROFITS FOR ONE THING SOME STORES INCLUDING BASHAS' MARKETS ARE STUDYING HOW THEY CAN HIGHLIGHT THEIR OWN STOREBRAND PRODUCTS LOCATING THEM IN PARTICULARLY HOT ENDAISLE DISPLAY AREAS ULTIMATELY BY BEING EFFECTIVE TRAFFIC COPS RESHUFFLING AISLES AND PRODUCTS TO ENCOURAGE MORE PEOPLE TO VISIT MORE PARTS OF THE STORE RETAILERS HOPE TO LESSEN THEIR RELIANCE ON COSTLY COUPONS AND PRICE DISCOUNTS TO INCREASE SALES AS KNOWLEDGE ABOUT SHOPPER BEHAVIOR AND TRAFFIC BECOMES MORE PRECISE MARKETERS BELIEVE GROCERS COULD BEGIN ASSIGNING VALUES TO PARTICULAR SECTIONS AND AISLES AFTER ALL COMMERCIAL REALESTATE VALUES ARE HIGHER IN MORE HEAVILY TRAFFICKED AREAS AND RATES FOR TV ADVERTISING RISE DURING PRIME TIME ARMED WITH SIMILIAR DATA RETAILERS COULD TRY TO CHARGE PRODUCT COMPANIES MORE TO DISPLAY THEIR GOODS IN BETTER LOCATIONS THERE ISN'T A BETTER COLLECTION PLACE FOR PEOPLE THAN THE GROCERY STORE SAYS RONALD SPEARS VIDEOCART'S CHIEF EXECUTIVE NOTING THAT SHOPPERS VISIT GROCERY STORES MORE FREQUENTLY THAN OTHER RETAIL OUTLETS WHAT THEY REALLY HAVE TO SELL IS REAL ESTATE 9308250010 930825 LETTERS TO THE EDITOR WHY MAKE IT EASIER FOR SPECIAL INTERESTS YOUR AUG 9 AND AUG 17 EDITORIALS MENTIONED MY NAME IN CONNECTION WITH REP INHOFE'S DISCHARGE PETITION I AM OPPOSED TO MAKING PUBLIC THE NAMES OF THOSE WHO SIGN A DISCHARGE PETITION BEFORE 218 MEMBERS HAVE SIGNED AND I'D LIKE THE OPPORTUNITY TO EXPLAIN YOU ARGUE THAT THE DISCHARGE PETITION PROCESS NEEDS TO BE CHANGED SO THAT LINEITEM VETO AND BALANCEDBUDGET AMENDMENTS THAT ARE OPPOSED BY THE HOUSE LEADERSHIP AND THE COMMITTEES OF JURISDICTION CAN GET A HEARING ON THE HOUSE FLOOR THE HOUSE PASSED A LINEITEM VETO BILL ON APRIL 29 OF THIS YEAR AND PASSED A SIMILAR BILL TWO YEARS AGO UNDER THE CURRENT PROCESS A BALANCED BUDGET CONSTITUTIONAL AMENDMENT REACHED THE HOUSE FLOOR THROUGH THE DISCHARGE ROUTE IN EACH OF THE LAST TWO CONGRESSES THE CURRENT DISCHARGE PROCESS GIVES A DETERMINED MAJORITY THE MEANS TO FORCE A BILL ONTO THE HOUSE'S SCHEDULE AND GET A VOTE SO WHAT ADVANTAGE IS TO BE GAINED BY MAKING THE NAMES PUBLIC BEFORE 218 MEMBERS HAVE SIGNED THE ONLY DIFFERENCE I SEE IS THAT IT WILL BE EASIER FOR LOBBYISTS TO WORK THEIR INFLUENCE ARMED WITH THE NAMES SPECIALINTEREST LOBBYISTS CAN PLY THEIR TRADE THE SPECIAL INTERESTS WILL QUICKLY LEARN HOW TO USE DISCHARGE PETITIONS TO MOVE THEIR OWN AGENDA AND SPECIALINTEREST BILLS WILL GET TO THE FLOOR WITHOUT THE BENEFIT OF COMMITTEE HEARINGS THE REGULAR COMMITTEE PROCESS MEANS PUBLIC HEARINGS WHERE ALL INTERESTS ARE HEARD THE DISCHARGE PETITION WILL BECOME THE PREFERRED ROUTE FOR SPECIALINTEREST BILLS I OPPOSE REP INHOFE'S DISCHARGE PETITION BECAUSE I OPPOSE MAKING THE DISCHARGE PROCESS EASIER FOR SPECIALINTEREST LOBBYISTS TO MANIPULATE 9308250009 930825 BEVERLY ENTERPRISES EXPECTS '94 REVENUE TO DECLINE IN FLORIDA FORT SMITH ARK BEVERLY ENTERPRISES INC SAID IT EXPECTS REVENUE FROM HEALTHCARE FACILITIES IN FLORIDA ONE OF ITS LARGEST MARKETS TO DECLINE BY ABOUT 500000 A MONTH IN THE FIRST HALF OF 1994 BECAUSE OF SMALLERTHANEXPECTED INCREASES IN STATE MEDICAID RATES MOREOVER ANALYSTS SAID FLORIDA'S RATE ACTIONS COULD BE A HARBINGER FOR WHAT OTHER BIG STATES WILL DO ON MEDICAID RATE INCREASES MEDICAID IS A BIG STATE EXPENDITURE AND WHEN STATES' BUDGETS ARE UNDER PRESSURE THEY LOOK TO CUT THERE SAID MARGO VIGNOLA AN ANALYST AT SALOMON BROTHERS IN NEW YORK SALOMON DOWNGRADED BEVERLY'S STOCK FRIDAY TO HOLD FROM BUY AND REDUCED ITS 1994 PERSHARE EARNINGS ESTIMATE TO 85 CENTS FROM 95 CENTS A SPOKESMAN FOR THE NURSINGHOME OPERATOR SAID THAT RATE DISAPPOINTMENTS IN OTHER STATES ARE ALWAYS POSSIBLE BUT WE DON'T KNOW OF ANY OTHER SITUATIONS RIGHT NOW SIMILAR TO FLORIDA THE COMPANY SAID CHANGES IN METHODS FOR CALCULATING INCENTIVE PAYMENTS IN FLORIDA REDUCED THOSE PAYMENTS BY ABOUT HALF PRODUCING MEDICAID RATE INCREASES IN THE STATE OF SLIGHTLY LESS THAN 1 BEVERLY WAS ANTICIPATING A 4 RATE INCREASE BEVERLY ALSO SAID THE FEDERAL BUDGET SIGNED INTO LAW ON AUG 10 ELIMINATED SOME MEDICARE PAYMENTS FOR CAPITAL COSTS WHICH HAD GIVEN THE COMPANY 56 MILLION IN PRETAX PROFIT FOR THE SIX MONTHS ENDED JUNE 30 THE COMPANY SAID IT CAN'T PREDICT THE FULL IMPACT OF THAT CHANGE ON ITS FINANCIAL CONDITION AND RESULTS BUT SAID LOWER REVENUE MAY BE OFFSET BY SOME FUTURE COST REDUCTIONS IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY BEVERLY CLOSED AT 10 A SHARE DOWN 375 CENTS 9308250008 930825 AMERICARE TO OPEN FACILITY SAN ANTONIO LITTLEFIELD ADAMS & CO SAID AMERICARE HEALTH GROUP INC WILL OPEN A SELFCONTAINED MULTIDISCIPLINARY REHABILITATION FACILITY IN ROCKVILLE CENTRE NY ON OR ABOUT AUG IN A NEWS RELEASE LITTLEFIELD WHICH HAS A 25 STAKE IN AMERICARE SAID THE CLINIC IS BASED ON AMERICARE'S INITIAL MODELS AND WILL PROVIDE MEDICAL CHIROPRACTIC AND REHABILITIVE SERVICES FOR TREATMENT OF BACK AND OTHER RELATED INJURIES A LITTLEFIELD SPOKESMAN SAID THE TYPICAL COST OF SUCH A FACILITY IS ABOUT 600000 TO 700000 LITTLEFIELD SAID AMERICARE IS STUDYING LOCATIONS FOR FUTURE FACILITIES AND SAID THE COMPANY EXPECTS SEVERAL NEW CLINICS TO BE OPERATIONAL BY THE YEAR END 9308250006 930825 DEERE EARNINGS AGAIN SURPASS ANALYST VIEWS NET FOR JULY QUARTER SOARED 50 ABOVE PROJECTIONS STOCK PRICE JUMPS 76 BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DEERE & CO'S EARNINGS GROWTH OUTSTRIPPED WALL STREET'S EXPECTATIONS FOR THE SECOND CONSECUTIVE QUARTER SENDING ITS SHARES SHARPLY HIGHER THE MOLINE ILL MAKER OF FARM LAWN AND INDUSTRIAL EQUIPMENT REPORTED A TENFOLD EARNINGS INCREASE FOR THE THIRD QUARTER ENDED JULY 31 ON A 17 INCREASE IN REVENUE THE RESULTS TOPPED ANALYSTS' PROJECTIONS BY ABOUT 50 AND CAUSED DEERE'S SHARES TO JUMP 525 OR 76 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING TO A 52WEEK HIGH OF 74 THE STOCK'S PRICE HAS DOUBLED SINCE LATE LAST YEAR DEERE'S STRONG RESULTS TRIGGERED A RALLY IN HEAVYMACHINERY SHARES AND HELPED SEND THE OVERALL STOCK MARKET HIGHER WITH SEVERAL INDEXES SETTING RECORDS THE STRONG EARNINGS ARE EVEN MORE STRIKING GIVEN THE WIDESPREAD FLOOD DAMAGE THAT DEVASTATED CROPS ACROSS MUCH OF THE FARM BELT OVERALL RETAIL SALES OF AGRICULTURAL EQUIPMENT IN NORTH AMERICA REMAIN STRONG SAID DEERE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER HANS W BECHERER ALTHOUGH EXTREMELY WET CONDITIONS AND FLOODING IN THE MIDWEST AND DROUGHT CONDITIONS MAINLY IN PARTS OF THE SOUTH ARE AFFECTING CROP PRODUCTION AND EQUIPMENT SALES STRONG DEMAND CONTINUES IN AREAS EXPERIENCING GOOD GROWING CONDITIONS DEERE REPORTED NET INCOME OF 1001 MILLION OR 131 A SHARE FOR THE QUARTER WELL ABOVE THE DEPRESSED YEAR EARLIER'S 91 MILLION OR 12 CENTS A SHARE REVENUE ROSE TO 205 BILLION FROM 175 BILLION THE UPTURN IN VOLUME ALONG WITH HIGHER PRICES AND COSTCUTTING AND PRODUCTIVITY MEASURES HELPED BOOST PROFIT MARGINS THE COMPANY SAID EARNINGS GOT A BOOST FROM SIGNIFICANTLY HIGHER RETAIL SALES OF JOHN DEERE AGRICULTURAL EQUIPMENT IN NORTH AMERICA ESPECIALLY FOR OUR COMBINES AND NEW LARGE TRACTORS SALES WERE ALSO UP STRONGLY FOR LAWN AND GROUNDCARE EQUIPMENT AND INDUSTRIAL EQUIPMENT IN CONVERSATIONS WITH ANALYSTS THE COMPANY INDICATED THAT IT HAS BOOSTED ITS PROJECTION OF 1993 NET FARM CASH INCOME A KEY DRIVER OF BIGTICKET PURCHASES TO AS MUCH AS 70 BILLION FROM DEERE'S EARLIER FORECAST OF ABOUT 60 BILLION DEERE'S OUTLOOK AT LEAST FOR THIS YEAR IS CERTAINLY IMPROVING SAID ROBERT W BAIRD & CO ANALYST LARRY D HOLLIS ESTIMATES OF ITS EARNINGS GOING FORWARD ARE GOING TO HAVE TO BE INCREASED HE SAID THE RECOVERY IN THE DOMESTIC AGRICULTURALEQUIPMENT MARKET GOT UNDER WAY LATE LAST YEAR AND ACCELERATED THROUGH THE SPRING AS FARMERS LESS BURDENED BY DEBT AND ENCOURAGED BY DECLINING INTEREST RATES AND THE FIRMING ECONOMY BEGAN TO REPLACE THEIR AGING COMBINES AND TRACTORS THERE HAS BEEN SOME QUESTION AS TO WHETHER THE UPTURN HAS REPRESENTED A FULLBLOWN CYCLICAL RECOVERY OR A MORE MINOR CORRECTION TO THE EARLIER DEPRESSED LEVELS WHILE BAD WEATHER WILL HURT CROP YIELDS AND REDUCE THE NUMBER OF HARVESTED ACRES BAIRD'S MR HOLLIS SAYS RETAIL AGEQUIPMENT DEMAND IS SHOWING STRENGTH BECAUSE THOSE FARMERS WHO DO HAVE CROPS WILL REAP HIGHER PRICES FOR THEIR PRODUCTS DEERE SAID IT INCREASED NORTH AMERICAN AGEQUIPMENT PRODUCTION SCHEDULES FOR THE SECOND TIME THIS YEAR SO THAT WORLDWIDE PRODUCTION ON A TONNAGE BASIS WILL BE UP ABOUT 10 FOR THE YEAR THE COMPANY HAD ORIGINALLY PLANNED TO BOOST PRODUCTION 5 FROM LAST YEAR BUT IN MAY RAISED ITS SCHEDULE TO AN 8 INCREASE FROM 1992 IN DEERE'S SECOND QUARTER OPERATING EARNINGS TOPPED ANALYST EXPECTATIONS BUT NET INCOME FELL BECAUSE OF AN 80 MILLION CHARGE TO COVER THE COST OF CUTTING THE COMPANY'S WORK FORCE IN EUROPE 9308250005 930825 CORRECTIONS & AMPLIFICATIONS THE CHEESE USED ON ALL LITTLE CAESARS PIZZAS IS PARTLY MADE FROM SKIM MILK IN AN ARTICLE MONDAY ABOUT THE FAT CONTENT OF FAST FOOD IT WAS INCORRECTLY REPORTED THAT SOME PIZZAS MADE BY LITTLE CAESAR ENTERPRISES INC CONTAIN CHEESE MADE FROM 100 WHOLE MILK RAY MATALONI IS AN ECONOMIST WITH THE US COMMERCE DEPARTMENT IN AN ARTICLE YESTERDAY ON OVERSEAS INVESTMENTS OF SMALL COMPANIES MR MATALONI WAS INCORRECTLY IDENTIFIED AS AN ECONOMIST WITH THE US CHAMBER OF COMMERCE BARRIE CASSILETH WAS INCORRECTLY IDENTIFIED AS THE AUTHOR OF PSYCHOSOMATIC MEDICINE AND HER LAST NAME WAS MISSPELLED IN AN AUG 2 ARTICLE ON ALTERNATIVE MEDICINE DR CASSILETH IS AN ADJUNCT PROFESSOR OF MEDICINE AT THE UNIVERSITY OF NORTH CAROLINA ALFRED J NILSON WHO WAS RECENTLY NAMED VICE PRESIDENT MARKETING AT VIACOM INC'S VIACOM NEW MEDIA UNIT IS 36 YEARS OLD BASED ON INFORMATION SUPPLIED BY THE COMPANY AN ITEM IN MONDAY'S ADVERTISING COLUMN INCORRECTLY STATED HIS AGE AS 35 BROWNFORMAN CORP'S CLASS A COMMON SHARES WERE UNCHANGED AT 74 A SHARE MONDAY AN ARTICLE YESTERDAY GAVE THE CLOSING PRICE OF PREFERRED SHARES 9308250004 930825 MARKETING & MEDIA NEWS CORP'S NET MORE THAN TRIPLED FOR FOURTH QUARTER BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEWS CORP'S EARNINGS MORE THAN TRIPLED FOR THE FISCAL FOURTH QUARTER ENDED JUNE 30 AS REVENUE INCHED UP 15 THE GLOBAL MEDIA AND ENTERTAINMENT GIANT BASED IN SYDNEY AUSTRALIA CITED IMPROVED RESULTS IN ITS NEWSPAPER TELEVISION AND MAGAZINE OPERATIONS BUT THE GAINS WERE DAMPED BY PLUNGING OPERATING PROFITS IN ITS FILMED ENTERTAINMENT OPERATIONS PRIMARILY TWENTIETH CENTURY FOX FILM FOR THE PERIOD NEWS CORP HAD NET INCOME OF 1532 MILLION OR 67 CENTS AN AMERICAN DEPOSITARY SHARE A YEAR EARLIER EARNINGS TOTALED 479 MILLION OR 18 CENTS AN AMERICAN DEPOSITARY SHARE REVENUE ROSE TO 188 BILLION FROM 186 BILLION THE LATEST RESULTS INCLUDED A 627 MILLION ONETIME LOSS LARGELY REFLECTING AN UNREALIZED FOREIGNEXCHANGE LOSS AT ANSETT TRANSPORT INDUSTRIES LTD AN AUSTRALIAN AIRLINE 50OWNED BY NEWS CORP THE YEAREARLIER QUARTER INCLUDED EXTRAORDINARY CHARGES TOTALING 1017 MILLION OPERATING PROFIT ROSE 56 TO 3205 MILLION FOR THE FISCAL YEAR PROFIT JUMPED 57 TO 6052 MILLION OR 281 AN AMERICAN DEPOSITARY SHARE FROM 3845 MILLION OR 215 AN AMERICAN DEPOSITARY SHARE REVENUE SLIPPED 42 TO 748 BILLION THE LATEST YEAR'S RESULTS INCLUDED ABNORMAL LOSSES OF 802 MILLION RELATED TO ANSETT NEWS CORP'S US OPERATIONS POSTED A 10 GAIN IN OPERATING PROFIT REFLECTING RECORD RESULTS AT FOX BROADCASTING CO AND FOX TELEVISION STATIONS AND AT TV GUIDE RESULTS WERE FLAT AT THE COMPANY'S HARPERCOLLINS BOOK PUBLISHING OPERATION NEWS CORP SAID OPERATING PROFIT INCREASED IN ITS BRITISH NEWSPAPER OPERATIONS DESPITE FLAT ADVERTISING AND CIRCULATION REVENUE 9308250003 930825 REGULATORY CHOKEHOLD THE DRY FACTS ABOUT WETLANDS' BY JONATHAN TOLMAN YESTERDAY AS PART OF BILL CLINTON'S WETLANDS PLAN THE ENVIRONMENTAL PROTECTION AGENCY PROMULGATED A FINAL RULE TO HELP PROTECT THE NATION'S WETLANDS THIS REGULATION KNOWN AS THE TULLOCH RULE ADDS A FINAL TWIST TO THE BIZARRE EVOLUTION OF WETLAND REGULATION NO ENVIRONMENTAL ISSUE HAS CAUSED AS MUCH POPULIST REVOLT AS THE FEDERAL GOVERNMENT'S ROLE IN REGULATING WETLANDS BUT BEYOND ALL THE ENVIRONMENTAL AND PROPERTYRIGHTS RHETORIC FEW PEOPLE REALIZE THAT THIS ENTIRE REGULATORY SCHEME STEMS FROM ONE SMALL SECTION OF A 20YEAROLD LAW ONE THAT DOES NOT EVEN MENTION THE WORD WETLAND THE CURRENT REGULATORY APPARATUS HAS NOT EVOLVED IN AN ATMOSPHERE OF OPEN DEBATE AND DEMOCRATIC VOTING IT HAS BEEN CREATED BY THE OBSCURE MEMOS AND LEGAL BRIEFS OF JUDGES LAWYERS AND BUREAUCRATS IT HAS BEEN THE AGENCIES AND THE COURTS THAT HAVE DEFINED AND ENFORCED THEIR OWN INTERPRETATION OF THE STATUTE REGARDLESS OF THE ORIGINAL INTENT OF CONGRESS THE MOST SIGNIFICANT PART IN THIS WHOLE DRAMA OF WETLAND REGULATION IS THAT VIRTUALLY NONE OF THE MAJOR PLAYERS HAVE BEEN ELECTED OFFICIALS THE CHANGES THAT HAVE TAKEN PLACE HAVE NEVER BEEN PASSED BY THE HOUSE AND SENATE ONLY LAST MONTH DID SENS MAX BAUCUS D MONT AND JOHN CHAFEE R RI DECIDE TO INTRODUCE A BILL THAT IF PASSED WOULD CODIFY THE STATUS QUO IN 1972 CONGRESS PASSED THE FEDERAL WATER POLLUTION CONTROL ACT TUCKED AWAY IN A LITTLE CORNER OF THE ACT WAS THE PROHIBITION OF DISCHARGING DREDGED OR FILL MATERIALS INTO NAVIGABLE WATERS WITHOUT A FEDERAL PERMIT KNOWN AS SECTION 404 TO THOSE IN CONGRESS WHO VOTED FOR THE ACT IN 1972 THIS SMALL PASSAGE MUST HAVE SEEMED INNOCUOUS AND HARDLY OPEN TO INVENTIVE INTERPRETATIONS AT FIRST THE ARMY CORPS OF ENGINEERS THE AGENCY IN CHARGE OF WRITING PERMITS INTERPRETED THE PASSAGE TO MEAN ONLY WHAT IT OBVIOUSLY SAYS WATERS THAT COULD ACTUALLY BE NAVIGATED BUT IN 1975 THE CORPS REDEFINED NAVIGABLE WATERS TO INCLUDE OTHER US WATERS APPARENTLY THIS WAS STILL A LITTLE TOO AMBIGUOUS SO IN 1977 THE CORPS REDEFINED ITS REDEFINITION TO INCLUDE SUCH THINGS AS WETLANDS A WETLAND IS JUST WHAT IT SOUNDS LIKELAND THAT IS WET BUT JUST BECAUSE IT IS WET DOES THAT MEAN THAT IT IS A NAVIGABLE WATER IN US V RIVERSIDE BAYVIEW HOMES 1985 THE SUPREME COURT DECIDED THE QUESTION IN WRITING THE OPINION FOR THE COURT JUSTICE BYRON WHITE COMMENTED IT MAY APPEAR UNREASONABLE TO CLASSIFY LAND WET OR OTHERWISE AS WATERS THE APPEARANCE OF UNREASONABLENESS HOWEVER DID NOT STOP THE COURT ACCORDING TO JUSTICE WHITE CONGRESS KNEW THAT THE EPA AND THE CORPS HAD CHANGED THE DEFINITION OF A NAVIGABLE WATER THE RECORD SHOWS THAT WHILE THERE WERE NUMEROUS DEBATES OVER WHAT SHOULD BE DONE ABOUT WETLANDS CONGRESS NEVER PASSED A BILL CHANGING THE DEFINITION EITHER TO ACCEPT THE NEW DEFINITION OR TO REJECT IT NONETHELESS ACCORDING TO JUSTICE WHITE THE EVIDENT BREADTH OF CONGRESSIONAL CONCERN FOR PROTECTION OF WATER QUALITY AND AQUATIC ECOSYSTEMS SUGGESTS THAT IT IS REASONABLE FOR THE CORPS TO INTERPRET THE TERM WATERS' TO ENCOMPASS WETLANDS OTHER COURT CASES FOLLOWING US V RIVERSIDE BAYVIEW HOMES GRANTED BROAD DISCRETION TO THE EPA AND THE CORPS IN DETERMINING WHAT WAS A NAVIGABLE WATER BY 1987 NAVIGABLE WATERS HAD EVOLVED INTO LAND THAT NEEDED ONLY TO BE OCCASIONALLY WET ACCORDING TO THE CURRENT CORPS OF ENGINEERS WETLAND DELINEATION MANUAL VISIBLE WATER IS NO LONGER NECESSARY AN AREA COULD BE CONSIDERED A NAVIGABLE WATER IF IT CONTAINED THE RIGHT KINDS OF PLANTS AND SOIL AFTER FINALLY RESOLVING WHAT THEY THOUGHT CONGRESS MEANT BY NAVIGABLE WATERS THE BUREAUCRATS AND THE LAWYERS THEN TURNED THEIR ATTENTION TO THE MEANING OF DISCHARGE OF DREDGED MATERIAL A FEW CASES SUCH AS AVOYELLES SPORTSMEN'S LEAGUE V MARSH AND RYBACHEK V US EPA HAVE CHALLENGED THE DEFINITION BUT THE REAL TURNING POINT CAME THIS MONTH TO SETTLE THE PENDING LAWSUIT OF NORTH CAROLINA WILDLIFE FEDERATION V TULLOCH THE GOVERNMENT HAS COMPLETELY REDEFINED DISCHARGE OF DREDGED MATERIAL THE NEW DEFINITION INCLUDES NOT ONLY THE ADDITION OF MATERIAL BUT ALSO ACTIVITIES SUCH AS CLEARING AND EXCAVATION WITH THE DEFTEST LEGAL SLEIGHT OF HAND SUBTRACTION HAS MAGICALLY TURNED INTO ADDITION ACCORDING TO THE INTERIOR DEPARTMENT THERE ARE ROUGHLY 104 MILLION ACRES OF WETLANDS NATIONWIDE REQUIRING A FEDERAL PERMIT FOR ANY DEVELOPMENT ON THIS LAND WILL HAVE SIGNIFICANT EFFECTS ON ITS PROPERTY VALUE THE CITY OF ANCHORAGE ALASKA COMMISSIONED A COUNTYBYCOUNTY ANALYSIS OF THE STATE OF ARKANSAS WHICH HAS 276 MILLION ACRES OF WETLANDS THE STUDY FOUND THAT BECAUSE OF REDUCED LAND VALUE LOCAL GOVERNMENTS WOULD LOSE MORE THAN 183 MILLION IN PROPERTY TAX REVENUE IN THE FIRST YEAR IF THE ARKANSAS ANALYSIS IS CORRECT LOCAL GOVERNMENTS NATIONWIDE MAY LOSE UP TO 69 BILLION IN PROPERTY TAXES IN THE SAME PERIOD BUT THERE MAY BE A BRIGHT SIDE TO THIS REDEFINITION THIS KIND OF REGULATION COULD BE THE SOLUTION TO MANY OF THE GOVERNMENT'S PROBLEMS NOT JUST WETLANDS FOR EXAMPLE IF YOU DECLARE THAT THE REMOVAL OF MATERIAL FROM THE TREASURY IS THE SAME AS ADDING MATERIAL TO IT YOU COULD SOLVE THE BUDGET CRISIS IN A MATTER OF WEEKS THE GOVERNMENT HASN'T TAKEN ALL LEAVE OF ITS SENSES THOUGH IT ASTUTELY NOTED IN THE TULLOCH REGULATION THAT NAVIGABLE WATERS DO NOT INCLUDE PRIOR CONVERTED CROPLAND HOWEVER IT ISN'T CLEAR WHETHER THIS EXCEPTION APPLIES TO THOSE AREAS OF IOWA THAT THE COAST GUARD HAS BEEN PATROLLING RECENTLY MR TOLMAN FORMERLY AN ENVIRONMENTAL ANALYST WITH VICE PRESIDENT QUAYLE'S COUNCIL ON COMPETITIVENESS IS A FELLOW AT THE ALEXIS DE TOCQUEVILLE INSTITUTION IN ARLINGTON VA 9308250002 930825 FIVE DEFENDANTS IN BNL HEARING RECEIVE PROBATION BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE JUSTICE DEPARTMENT SOUGHT LIGHT PENALTIES FOR FIVE DEFENDANTS IN AN INTERNATIONAL BANKING SCANDAL INVOLVING SECRET ARMS SALES TO IRAQ THE FIVE DEFENDANTS EMPLOYEES OF THE ATLANTA BRANCH OF BANCA NAZIONALE DEL LAVORO RECEIVED PROBATION AT A SENTENCING HEARING IN ATLANTA MONDAY AT THAT TIME A FEDERAL JUDGE CRITICIZED THE CLINTON ADMINISTRATION'S FINDING DISCLOSED AT THE HEARING THAT THERE WAS NO CONSPIRACY BY BUSH ADMINISTRATION OFFICIALS TO COVER UP THE WEAPONS TRANSFER BASED ON THE INFORMATION THAT I HAVE SEEN AND THAT HAS BEEN REVEALED THAT KIND OF CONCLUSION COULD ONLY COME ABOUT IN NEVERNEVER LAND JUDGE MARVIN SHOOB SAID IN AN INTERVIEW RECALLING HIS COURTROOM COMMENTS JOHN HOGAN A SPECIAL ASSISTANT TO ATTORNEY GENERAL JANET RENO WOULDN'T DISCUSS THE DETAILS OF THE CLINTON ADMINISTRATION PROBE INTO ALLEGATIONS OF A BUSH ADMINISTRATION COVERUP HE DID SAY DEPARTMENT OFFICIALS REVIEWED THE EVIDENCE AND WE DID NOT FIND COMPELLING EVIDENCE THERE WAS CONSPIRACY THE DEFENDANTS HAD PLEADED GUILTY TO FELONIES INVOLVING 21 BILLION IN UNAUTHORIZED LOANS TO IRAQ WHICH ALLEGEDLY USED THE MONEY TO COVERTLY PURCHASE ARMS FROM THE US DURING THE BUSH PRESIDENCY UNDER FEDERAL SENTENCING GUIDELINES THEY COULD HAVE RECEIVED PRISON TERMS RANGING FROM 15 MONTHS TO 30 MONTHS MR HOGAN SAID IT IS UNUSUAL FOR FEDERAL PROSECUTORS TO REQUEST SENTENCES THAT ARE MORE LENIENT THAN THE GUIDELINES IN THE YEAR ENDED SEPTEMBER 1992 THAT HAPPENED ABOUT 15 OF THE TIME IN CASES WHERE DEFENDANTS PROVIDED SIGNIFICANT HELP TO THE PROSECUTION ACCORDING TO US SENTENCING COMMISSION FIGURES MR HOGAN SAID THE PROSECUTION REQUESTED THE LIGHTER SENTENCES FOR FOUR DEFENDANTS AND WAS PREPARED TO FOR THE FIFTH BASED ON THEIR SUBSTANTIAL ASSISTANCE TO THE GOVERNMENT ANOTHER DEFENDANT FROM THE ROMEBASED BANK BRANCH MANAGER CHRISTOPHER DROGOUL WILL GO ON TRIAL SEPT 8 AT THE REQUEST OF THE GOVERNMENT JUDGE SHOOB WON'T PRESIDE AT THE DROGOUL TRIAL MR HOGAN'S COMMENTS ABOUT THE LACK OF A CONSPIRACY MAKE IT HIGHLY UNLIKELY THAT THE CLINTON ADMINISTRATION WOULD SEEK A SPECIAL PROSECUTOR TO INVESTIGATE THE BNL SCANDAL AS JUDGE SHOOB AND SOME MEMBERS OF CONGRESS HAVE CALLED FOR EVEN IF THE NOWEXPIRED LAW ALLOWING APPOINTMENT OF ONE IS RENEWED JUSTICE DEPARTMENT OFFICIALS FEEL MR HOGAN WHO WORKED FOR MS RENO PRIOR TO THEIR JOINING THE CLINTON ADMINISTRATION ESSENTIALLY FULFILLED THAT ROLE AT THE HEARING THE GOVERNMENT OBJECTED TO JUDGE SHOOB'S PUBLICLY FILING COMMENTS ABOUT THE CASE BEFORE MR DROGOUL'S TRIAL IN THOSE REMARKS THE JUDGE SAID THE FIVE DEFENDANTS WERE PAWNS OR BIT PLAYERS IN A FAR LARGER AND WIDERRANGING SOPHISTICATED CONSPIRACY THAT INVOLVED BNLROME AND POSSIBLY LARGE AMERICAN AND FOREIGN CORPORATIONS AND THE GOVERNMENTS OF THE UNITED STATES ENGLAND ITALY AND IRAQ JUDGE SHOOB DIRECTLY CHALLENGED PROSECUTORS' ASSERTIONS THAT THE FORMER EMPLOYEES WERE ACTING WITHOUT THE APPROVAL OF THEIR ROME SUPERVISORS HE SAID THE BNL AFFAIR WAS CONSIDERED BY SOME SOURCES TO BE PART OF AN ACKNOWLEDGED COOPERATIVE STRATEGY TO SUPPORT IRAQ TO ENSURE ITS VICTORY IN THE IRANIRAQ WAR THE JUDGE WROTE THAT THE CENTRAL INTELLIGENCE AGENCY EITHER KNEW OF THE ACTIVITIES OR THE CIA FAILED TO DETECT A FIVEYEAR INTERNATIONAL DECEPTION AND LARGESCALE ILLEGAL FINANCING OF ARMS FOR IRAQ THROUGH A SMALL BRANCH BANK IN ATLANTA GEORGIA A STAFF MEMBER OF THE CIA'S PUBLIC AFFAIRS OFFICE SAID THERE WAS NO AGENCY OFFICIAL AVAILABLE FOR COMMENT 9308250001 930825 TECHNOLOGY & HEALTH NASA STILL HOPES MARS SPACECRAFT WILL PHONE HOME BY BARBARA ROSEWICZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ON THE DAY THE US SHOULD HAVE BEEN CELEBRATING ITS RETURN TO MARS AFTER 17 YEARS NASA WAS ON THE BRINK OF HAVING TO DECLARE ITS 1 BILLION UNMANNED MISSION TO THE RED PLANET A FAILURE THE MARS OBSERVER FELL OUT OF TOUCH WITH EARTH FOUR DAYS AGO WHEN IT STOPPED SENDING SIGNALS EFFORTS BY NASA ENGINEERS TO JOLT THE SPACECRAFT BACK INTO ACTION THROUGH COMPUTER COMMANDS HAVE FAILED LEAVING ONE LAST HOPE THAT THE SPACE PROBE WILL PHONE HOME AUTOMATICALLY TODAY AS IT WAS PROGRAMMED TO DO BEFORE IT LEFT EARTH A COMPLETE LOSS OF COMMUNICATIONS OCCURRED JUST AS THE SPACECRAFT WAS COMPLETING ITS 11MONTH 450 MILLIONMILE JOURNEY AND WAS TO DESCEND INTO MARS'S ORBIT FOR THE MOST EXTENSIVE EXPLORATION YET OF THE COLD DUSTY PLANET THE POTENTIAL FAILURE COMES AT A PARTICULARLY BAD TIME FOR THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION NASA HAD HOPED THE HIGHPROFILE VOYAGE WOULD POLISH ITS IMAGE ON CAPITOL HILL AND HELP PROTECT IT FROM BUDGETCONSCIOUS LAWMAKERS WHO ARE GROWING DUBIOUS OF BIG EXPENSIVE SCIENCE PROJECTS INCLUDING THE MULTIBILLIONDOLLAR MANNED SPACE STATION PROJECT THAT IS AWAITING A VOTE IN THE SENATE A COMPLETE LOSS OF THE MARS OBSERVER AMONG THE MOST EXPENSIVE UNMANNED MISSIONS WOULD OVERSHADOW EVEN THE RECENT TROUBLES OF THE HUBBLE TELESCOPE WHICH WAS LAUNCHED WITH A FLAWED MIRROR AND THE GALILEO MISSION TO JUPITER WHICH HAD A FAULTY ANTENNA THE BAD NEWS WAS COMPOUNDED BY THE POSSIBLE LOSS THIS WEEK OF ANOTHER NASAMANAGED SPACECRAFT A 67 MILLION ENVIRONMENTAL SATELLITE BUILT FOR THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION BOTH THE NOAA SATELLITE AND THE MARS OBSERVER WERE BUILT BY GENERAL ELECTRIC CO'S FORMER ASTRO SPACE DIVISION WHICH WAS BOUGHT BY MARTIN MARIETTA CORP IN APRIL NASA OFFICIALS SUSPECT A FAILURE IN THE ENVIRONMENTAL SATELLITE'S CIRCUITRY BETWEEN ITS SOLAR ARRAYS AND BATTERIES BUT THEY ARE BAFFLED BY THE MARS OBSERVER'S TROUBLES STILL NASA OFFICIALS REFUSED TO GIVE UP HOPE DESPITE THE BAD NEWS GLENN CUNNINGHAM PROJECT MANAGER SAID ENGINEERS ARE WORKING ON THE ASSUMPTION THAT THE SPACECRAFT FOLLOWED COMPUTERPROGRAMMED ORDERS TO FIRE ROCKETS YESTERDAY TO EASE IT INTO MARS'S ORBIT ALTHOUGH THERE IS NO WAY TO KNOW THAT OCCURRED THOSE SAME ORDERS TOLD THE SPACECRAFT TO RADIO HOME AFTERWARD BUT THERE WAS NO RESPONSE AT THE APPOINTED TIME THE LAST HOPE SEEMS TO BE THAT THE SPACECRAFT WHICH WAS DESIGNED WITH BACKUP SYSTEMS AND MEANS TO REPAIR ITSELF WILL RESPOND TO A BUILTIN CLOCK THAT TELLS IT TO RADIO EARTH IF IT HASN'T HEARD FROM GROUND CONTROL IN FIVE DAYS IF THERE IS NO RESPONSE NASA OFFICIALS HAVE NO WAY OF KNOWING WHETHER THE SPACECRAFT IS EVEN INTACT MR CUNNINGHAM SAID CHANCES ARE ONLY ONETENTH OF ONE PERCENT THAT THE CRAFT'S FUEL TANK EXPLODED AS IT WAS BEING PRESSURIZED IN PREPARATION FOR DESCENT INTO MARS'S ORBIT THE OBSERVER'S TRANSMITTER WAS TURNED OFF TEMPORARILY AS A SAFETY PRECAUTION DURING PRESSURIZATION AND NEVER RESUMED OPERATION OUT OF EIGHT US MISSIONS TO MARS SINCE 1964 TWO SPACECRAFTS WERE LOST THE RUSSIANS HAVE TRIED AT LEAST 13 MISSIONS TO MARS AND INCURRED FAILURES OR SERIOUS SETBACKS EVERY TIME WILLIAM PIOTROWSKI ACTING DIRECTOR OF SPACE EXPLORATION FOR NASA SAID THE AGENCY'S PROGRAMS ARE INHERENTLY RISKY AND THAT CONGRESS AND THE PUBLIC HAVE BEEN WILLING TO ACCEPT SUCH RISKS IF THE MARS OBSERVER IS LOST IT WILL HAVE AN INTERNATIONAL IMPACT AS WELL IT WOULD HAMPER A RUSSIAN MARS PROBE IN 1994 THAT IS TO LAND ON THE PLANET THAT PROJECT WAS COUNTING ON USING A FRENCH RELAY ON BOARD THE MARS OBSERVER TO SEND DATA BACK TO EARTH 9308250007 930720 POLITICS & POLICY DOING THE DEAL THE DEFICITREDUCTION CONFERENCE FOES OF CLINTON'S TAXBOOST PROPOSALS MISLEAD PUBLIC AND FIRMS ON THE SMALLBUSINESS ASPECTS BY DAVID WESSEL AND JEANNE SADDLER STAFF REPORTERS OF THE WALL STREET JOURNAL SMALLBUSINESS OWNER DOTTIE CIESZYNSKI MADE A COMPELLING WITNESS AGAINST HIGHER TAXES AT A MONTGOMERY ALA NEWS CONFERENCE LAST WEEK CALLED BY THE ANTITAX GROUP CITIZENS FOR A SOUND ECONOMY DECLARING THAT PRESIDENT CLINTON'S PROPOSED TAX INCREASES WOULD FORCE HER TO CHARGE MORE FOR THE HOMEHEALTH SERVICES HER COMPANY PROVIDES MS CIESZYNSKI WARNED THAT LAYOFFS WERE INEVITABLE YOU CANNOT PULL THE TRAIN WITHOUT THE ENGINE AND YOU'RE GOING TO FIND OUT THIS ENGINE IS SMALL BUSINESS SHE SAID THERE'S JUST ONE PROBLEM HER BUSINESS CENTRAL ALABAMA NURSING SERVICES INC IS SO SMALL THAT HER TAX RATE WOULDN'T GO UP AT ALL UNDER MR CLINTON'S PROGRAM MS CIESZYNSKI SAYS SHE GLEANED HER BELIEF THAT HER MARGINAL TAX RATE WOULD SHOOT UP 14 PERCENTAGE POINTS TO 46 FROM MATERIAL PROVIDED BY CSE AND OTHER SMALLBUSINESS LOBBIES BUT ALL THE RHETORIC TO THE CONTRARY THE VAST MAJORITY OF SMALL BUSINESSES ARE IN MUCH THE SAME POSITION AS IS HERS UNDER THE TAXRATE INCREASES THAT HAVE CLEARED BOTH HOUSES OF CONGRESS THEY WOULDN'T BE TOUCHED ONLY THE MOST PROSPEROUS SMALLBUSINESS OWNERS WOULD BE AFFECTED OPPONENTS OF THE DEMOCRATS' PLAN TO RAISE TAXES ON UPPERINCOME PEOPLEREALIZE THERE ISN'T MUCH POINT IN SEEKING SYMPATHY FOR THE RICH SMALL BUSINESS ON THE OTHER HAND IS ALMOST SACRED SO THE FOES WHO MOUNTED AN EFFECTIVE CAMPAIGN AGAINST MR CLINTON'S ENERGY TAX KNOWN AS THE BTU TAX EARLIER THIS YEAR HAVE HIT THE SMALLBUSINESS ISSUE HARD IN PRINT AND RADIO ADS AND IN A FLURRY OF PRESS RELEASES HAVING BEEN SUCCESSFUL ON THE BTU TAX WE HAVE TURNED MORE OF OUR ENERGY TO THE SMALLBUSINESS ISSUE SAYS JERRY JASINOWSKI PRESIDENT OF THE NATIONAL ASSOCATION OF MANUFACTURERS THE REPUBLICAN NATIONAL COMMITTEE'S RADIO ADS SAY THE TAX BILL MEANS MORE TAXES ON SMALL BUSINESS KILLING JOBS AND ECONOMIC GROWTH NO ONE IS MAKING MORE NOISE ABOUT TAXES AND SMALL BUSINESS THAN CITIZENS FOR A SOUND ECONOMY A WASHINGTON GROUP HEADED BY JAMES MILLER WHO WAS PRESIDENT REAGAN'S BUDGET DIRECTOR AND IS NOW CAMPAIGNING FOR A REPUBLICAN US SENATE NOMINATION IN VIRGINIA THE GROUP'S SURVEYS OF LOCAL SMALL BUSINESSES WHO WARN OF LAYOFFS IF THEIR TAXES GO UP HAVE GENERATED STORIES IN LOCAL NEWSPAPERS FROM MILWAUKEE TO GADSDEN ALA SURVEY PRESIDENT'S TAX PLAN TO COST ALABAMA 40000 JOBS READ A HEADLINE IN THE GADSDEN TIMES THE GROUP'S ADS RUNNING IN LOCAL NEWSPAPERS OF TARGETED CONGRESSMEN AND SENATORS WHICH INCLUDE THE TELEPHONE NUMBERS OF THEIR DISTRICT OFFICES LABEL THE TAX BILL A JOB TAX THAT CRUSHES SMALL BUSINESSES THE GROUP'S 60SECOND RADIO ADS ARE EVEN TOUGHER FEATURING TWO POLITICIANS FRANKIE AND WEASEL WHO SOUND LIKE GANGSTERS LET'S TAX SMALL BUSINESES YOU KNOW CAR WASHES FARMS GROCERY STORES WE'LL SAY IT'S A TAX ON THE RICH FRANKIE SAYS YEAH REPLIES WEASEL BUT THEY HIRE A WHOLE LOTTA PEOPLE IT'LL MEAN THEY'LL HAVE TO FIRE SOME FOLKS BETTER THEIR JOBS THAN OURS SAYS FRANKIE YOU'D HAVE TO HAVE ONE HUMDINGER OF A CAR WASH TO BE PULLING DOWN THAT KIND OF MONEY SAYS DJ GRIBBIN A LOBBYIST FOR THE NATIONAL FEDERATION OF INDEPENDENT BUSINESSES THE TYPICAL FEDERATION MEMBER EMPLOYS FIVE PEOPLE AND MAKES ABOUT 45000 A YEAR IN SALARY AND PROFIT IN THE CASE OF MS CIESZYNSKI'S COMPANY FOR INSTANCE HER BUSINESS IS ORGANIZED SO THAT SHE PAYS TAXES AT THE CORPORATE TAX RATE THE TAX BILL WOULD RAISE THE CORPORATE TAX RATE TO 35 BUT ONLY FOR COMPANIES WITH PROFIT OF 10 MILLION OR MORE MS CIESZYNSKI WON'T DISCLOSE PRECISELY WHAT HER FIRM EARNS BUT SHE SAYS IT'S LESS THAN 100000 JEFF NESBIT SPOKESMAN FOR CITIZENS FOR A SOUND ECONOMY SAYS THE GROUP DIDN'T ANALYZE THE TAXES OF THE PARTICIPANTS IN ITS NEWS CONFERENCE HE SAYS THE GROUP'S SURVEYS ARE RESTRICTED TO SUBCHAPTER S CORPORATIONS AND MS CIESZYNSKI WASN'T AMONG THOSE POLLED MS CIESZYNSKI SAYS SHE WAS INVITED TO PARTICIPATE IN THE NEWS CONFERENCE BY A LOCAL PUBLICRELATIONS FIRM SHE BELIEVES THE FIRM GOT HER NAME FROM THE NATIONAL FEDERATION OF INDEPENDENT BUSINESSES OF WHICH SHE IS A MEMBER THE CLINTON ADMINISTRATION KEENLY AWARE THAT OPPONENTS OF ITS ENERGY TAX SKILLFULLY USED LOCAL NEWSPAPERS AND RADIO STATIONS TO INFLUENCE SWING VOTES IN CONGRESS IS DOING ITS BEST TO SMOTHER THE ARGUMENTS WITH FACTS ERSKINE BOWLES THE NEW HEAD OF THE SMALL BUSINESS ADMINISTRATION RAISED THE ISSUE AT A TOWN MEETING IN WEST HARTFORD CONN LAST WEEK EVEN THOUGH NO ONE ASKED HIM ABOUT IT OTHER ADMINISTRATION OFFICIALS POINT OUT THAT THE ADMINISTRATIONBACKED PROPOSAL TO INCREASE WRITEOFFS FOR SMALL BUSINESSES THAT BUY NEW EQUIPMENT WOULD HELP FAR MORE BUSINESSES THAN THE TAX WOULD HURT THE TREASURY DOESN'T DISPUTE THE FACT THAT WELLOFF SMALLBUSINESS OWNERS WILL PAY HIGHER INCOME TAXES JUST AS WILL WELLOFF BANKERS ORTHODONTISTS AND EXXON CORP EXECUTIVES BUT ONLY ABOUT 4 OF THOSE TAXPAYERS WHO REPORT SOME BUSINESS INCOME ON THEIR TAX RETURNS AND THAT INCLUDES PARTNERS IN LAW FIRMS AND INVESTMENT BANKS AS WELL AS OWNERS OF SMALL MANUFACTURING COMPANIES MAKE SUFFICIENT MONEY TO BE HIT BY THE HIGHER TAX RATES THESE PEOPLE ACCOUNT FOR A SIGNIFICANT CHUNK OF THE MONEY THAT WOULD BE RAISED BY THE TAXRATE INCREASES OF THE 400 BILLION EARNED IN 1991 BY TAXPAYERS WITH GROSS INCOMES OF 200000 ABOUT 80 BILLION CAME FROM BUSINESS INCOME OF SOME SORT INTERNAL REVENUE SERVICE DATA SHOW OF COURSE THE MOST PROSPEROUS BUSINESSES ARE LIKELY TO BE THE ONES THAT EMPLOY THE MOST PEOPLE RAISING THEIR TAXES AND THEREBY REDUCING THEIR CASH FLOW ISN'T LIKELY TO ENCOURAGE THEM TO HIRE NEW EMPLOYEES OR BUY MORE EQUIPMENT TO SAY THIS IS A DISASTER FOR ALL SMALL BUSINESSES ISN'T ACCURATE SAYS JOHN SATAGAJ PRESIDENT OF THE SMALL BUSINESS LEGISLATIVE COUNCIL WHICH IS FRIENDLIER TO THE CLINTON ADMINISTRATION THAN SOME OTHER SMALLBUSINESS GROUPS BUT THE PROFILE OF THOSE COMPANIES AFFECTED ARE THE ONES YOU DON'T WANT TO HURT MEANWHILE SOME OF THE SMALLBUSINESS OWNERS WHO WILL BE HIT BY THE HIGHER TAXES SOUND AS ANGRY AT THE POPULIST RHETORIC AS THEY ARE AT THE INCREASE IN THEIR TAXES I EMPLOY 100 PEOPLE I PROVIDE A LIVING FOR THOSE PEOPLE SAYS RALPH EVANS OWNER OF EVANS FARM INN A RESTAURANT AND CATERING BUSINESS IN MCLEAN VA IT BOTHERS ME THAT CONGRESS AND MY PRESIDENT ARE TELLING ME I'M A NO GOOD SOB BECAUSE I MAKE SO MUCH MONEY ONLY A SMALL PERCENTAGE OF BUSINESS OWNERS WOULD ACTUALLY BE SUBJECT TO THE PROPOSED HIGHER PERSONAL RATES IN THE DEFICITREDUCTION PACKAGE PARTNERSHIPS OR SOLE PROPRIETORSHIPS THAN IN WAGES SEE RELATED LETTER LETTERS TO THE EDITOR MORE TAXES WILL POISON THE ECONOMY WSJ AUG 25 1993 9307200146 YY93 MM08 9308240131 930824 WHO'S NEWS GIBSON GREETINGS INC GIBSON GREETINGS INC CINCINNATI CHARLOTTE ST MARTIN A VICE PRESIDENT OF LOEWS CORP'S LOEWS HOTELS UNIT WAS ELECTED A DIRECTOR OF THIS GREETING CARD MAKER THE ELECTION OF MS ST MARTIN 48 YEARS OLD INCREASES THE BOARD TO 14 MEMBERS 9308240130 930824 MARRIOTT APPEARS ON WAY TO BREAKUP AFTER LASTMINUTE CHANGE IN SWAP RULES BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH A LASTMINUTE TWIST MARRIOTT CORP APPEARS TO BE ON THE HOME STRETCH IN ITS 10MONTH EFFORT TO SPLIT INTO TWO COMPANIES MORE THAN 12 BILLION OR 88 OF THE NOTES AND DEBENTURES ELIGIBLE FOR AN EXCHANGE OFFER HAVE BEEN TENDERED THAT EXCEEDS THE 85 RETURN RATE SOUGHT BY THE WASHINGTON DC LODGING AND FOODSERVICE COMPANY IN ITS EFFORT TO SPLIT INTO A CASHRICH HOTEL MANAGEMENT ARM AND A MORE SPECULATIVE REALESTATE COMPANY THAT WOULD BE RESPONSIBLE FOR MOST OF MARRIOTT'S DEBT WHEN MARRIOTT ANNOUNCED ITS PLAN TO SPLIT LAST FALL BONDHOLDERS COMPLAINED SAYING THEIR NEW SECURITIES WOULD BE RISKIER WITHOUT THE BACKING OF THE HOTEL MANAGEMENT OPERATION MARRIOTT AGREED TO SWEETEN THE TERMS OF THE EXCHANGE ALTHOUGH MOST OF THE ELIGIBLE DEBT HAS BEEN TENDERED MARRIOTT SAID IT IS STILL SHORT OF RECEIVING THE REQUIRED 51 OF EVERY SERIES HOLDERS HAVE TURNED OVER JUST 13 OF ONE 13 MILLION SERIES AND 46 OF A 46 MILLION SERIES TO GET AROUND THE SHORTFALLS MARRIOTT HAS UNILATERALLY CHANGED THE SWAP RULES SAYING IT NO LONGER NEEDS 51 OF THE TWO ISSUES WHILE SOME BONDHOLDERS MAY COMPLAIN MAX HOLMES DIRECTOR OF CORPORATE BOND RESEARCH AT SALOMON BROTHERS CALLS IT A PRETTY NIFTY SOLUTION IF HOLDERS OBJECT THEIR OPTIONS ARE LIMITED TO DEMANDING THEIR PRINCIPAL BACK IN EFFECT GIVING THE COMPANY THE EARLY REDEMPTION OPPORTUNITY IT CURRENTLY LACKS SAID RICHARD LEHMANN PRESIDENT OF THE BOND INVESTORS ASSOCIATION IN MIAMI LAKES FLA WE CERTAINLY ARE ON THE HOME STRETCH A MARRIOTT SPOKESMAN SAID TO MAKE THE SPLIT FINAL MARRIOTT NEEDS A LETTER FROM THE INTERNAL REVENUE SERVICE STATING THAT THE BREAKUP IS TAXFREE UNDER THE BREAKUP EXISTING SHAREHOLDERS WILL RECEIVE A SHARE IN EACH OF THE TWO NEW COMPANIES MARRIOTT INTERNATIONAL INC AND HOST MARRIOTT CORP FOR EACH ONE THEY NOW HOLD IN MARRIOTT CORP MARRIOTT STILL FACES A BONDHOLDER LAWSUIT RELATED TO THE TIMING OF ITS OCT 5 ANNOUNCEMENT OF THE BREAKUP THE SUIT CONTENDS THAT MARRIOTT SHOULD HAVE DISCLOSED ITS PLAN TO SPLIT LAST YEAR BEFORE SELLING TWO BOND ISSUES THE MARRIOTT SPOKESMAN SAID THE SUIT SHOULD NOT INTERFERE WITH THE BREAKUP 9308240128 930824 HONG KONG INFLATION RATE HONG KONG HONG KONG'S MAIN INFLATION GAUGE THE CONSUMER PRICE INDEX A MEASURE ROSE 82 IN JULY FROM A YEAR EARLIER CONTINUING A MODERATING TREND THE GOVERNMENT SAID A GOVERNMENT SPOKESMAN REITERATED THE GOVERNMENT'S FORECAST THAT CPI A WILL EXPAND AT 95 OVER THE COURSE OF THIS YEAR AFTER GROWING 94 IN 1992 9308240127 930824 INTERNATIONAL PHILIPPINES' TRADE DEFICIT MANILA THE PHILIPPINES THE PHILIPPINES' TRADE DEFICIT IN JUNE NARROWED TO 422 MILLION FROM 532 MILLION IN MAY THE NATIONAL STATISTICS OFFICE SAID THE GOVERNMENT SAID THE NARROWER TRADE GAP IN JUNE WAS BROUGHT ABOUT BY THE SLOWDOWN IN IMPORTS WHICH DECLINED 88 TO 133 BILLION FROM 146 BILLION IN MAY EXPORTS IN JUNE ON THE OTHER HAND FELL 2 TO 909 MILLION FROM 928 MILLION THE PREVIOUS MONTH 9308240126 930824 BALLY'S GRAND CASINO ENDS REORGANIZATION PLANS PUBLIC OFFERING LAS VEGAS BALLY'S GRAND INC EMERGED FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS FRIDAY AFTER A 21MONTH REORGANIZATION AND ITS HOTELCASINO ON THE STRIP WILL RETAIN THE BALLY NAME AND MANAGEMENT OF ITS FORMER PARENT COMPANY BALLY MANUFACTURING CORP ALSO ITT CORP SAID IT IS NO LONGER INTERESTED IN ACQUIRING THE 2800ROOM PROPERTY FOR WHICH THE COMPANY HAD SWEETENED ITS OFFER TO 15 A SHARE OR ABOUT 420 MILLION IN JUNE ITT ACQUIRED A STAKE IN THE RESORT BY BUYING THE CASINO'S DEBT WHILE IT WAS IN CHAPTER 11 AND WILL HOLD AN 115 STAKE IN NEW BALLY'S GRAND EQUITY ARTHUR GOLDBERG BALLY MANUFACTURING'S CHAIRMAN AND CHIEF EXECUTIVE HAD TAKEN SEVERAL STEPS TO ENSURE THAT THE CHICAGO CASINO AND HEALTHCLUB COMPANY WOULD KEEP A STRONG HAND ON THE PROPERTY BALLY MANUFACTURING AND AFFILIATES WILL OWN MORE THAN 40 OF THE NEW BALLY'S GRAND STOCK AND BALLY MANUFACTURING ALSO HOLDS A 10YEAR CONTRACT WITH THE PROPERTY FOR MANAGEMENT COMPUTERSOFTWARE RIGHTS AND THE USE OF THE BALLY NAME THE EQUITY OWNERSHIP OF THE NEWLY REORGANIZED CASINO STEMS IN PART FROM COMPLEX DEALINGS BETWEEN BALLY MANUFACTURING AND THE FIDELITY MUTUALFUND GROUP FIDELITY AGREED TO SWAP A SUBSTANTIAL PORTION OF ITS FUTURE EQUITY IN BALLY'S GRAND FOR BALLY MANUFACTURING'S 26 STAKE IN BALLY GAMING INTERNATIONAL INC A GAMBLINGMACHINE MANUFACTURER SPUN OFF BY BALLY MANUFACTURING IT RETAINS ABOUT 20 OF BALLY'S GRAND EQUITY IN JULY ITT HAD SENT A LETTER TO MR GOLDBERG OFFERING TO BUY THE CASINO FOR 15 A SHARE OR ALTERNATIVELY TO SELL BACK ITS STAKE TO BALLY MANUFACTURING AT THE SAME PRICE AN ITT SPOKESMAN SAID THE NEW YORK COMPANY IS NO LONGER INTERESTED IN BUYING THE CASINO BUT WOULD SELL BACK ITS SHARES AT THAT PRICE IN JUNE ITT AGREED TO PAY 160 MILLION TO BUY ANOTHER LAS VEGAS CASINO THE DESERT INN FROM BILLIONAIRE INVESTOR KIRK KERKORIAN MR GOLDBERG DECLINED TO COMMENT CITING A PENDING REGISTRATION STATEMENT EXCHANGE AGENTS ARE ISSUING NEW BALLY'S GRAND SECURITIES TO FORMER CREDITORS AND THE COMPANY IS SEEKING TO FILE A REGISTRATION STATEMENT TO LIST THE NEW STOCK FOR OVERTHECOUNTER TRADING 9308240125 930824 ENTERPRISE FIRMS CATER TO AFRICANSTYLE WEDDINGS BY SUZANNE ALEXANDER STAFF REPORTER OF THE WALL STREET JOURNAL WHEN WEDDING COORDINATOR METSA MITCHELL SITS DOWN WITH A BLACK BRIDETOBE SHE LIKES TO GO OVER THE BASICS DANCERS TO ENTERTAIN DRUMMERS TO ANNOUNCE THE BRIDE AND CORN KERNELS TO THROW AS A WISH FOR FERTILITY THESE ARE WEDDING RITES OF AFRICA AND AS MORE BLACK COUPLES CONSIDER BRINGING AFRICAN CARIBBEAN AND SLAVE TRADITIONS INTO THEIR NUPTIALS MORE ENTREPRENEURS ARE EAGERLY SETTING UP SHOP TO ASSIST IN MAY MS MITCHELL AND A PARTNER OPENED THE ALWAYS AND FOREVER WEDDING CHAPEL IN DETROIT WHICH OFFERS A VARIETY OF AFROCENTRIC GOODS AND SERVICES INCLUDING ANCIENT RITES PERFORMED BY YORUBAN PRIESTESSES AND WEDDINGGOWN DESIGNS IMPORTED FROM AFRICA NO ONE KEEPS TRACK OF TOTAL SALES OR COMPANIES IN THIS NEW NICHE IN THE 32 BILLION US WEDDING INDUSTRY BUT COMPETITION IS MINIMAL AND CONSUMER INTEREST IN THE CONCEPT IS HIGH AT A TIME WHEN BRIDES TODAY MAGAZINE REPORTS THAT BLACK COUPLES ARE SPENDING A TOTAL OF 32 BILLION A YEAR ON THEIR WEDDINGS THE WHOLE BUSINESS OF AFROCENTRIC GOODS IS A GROWING INDUSTRY SAYS NANCY FLAKE DIRECTOR OF HOWARD UNIVERSITY'S SMALL BUSINESS DEVELOPMENT CENTER THERE ARE LOTS OF ENTREPRENEURIAL OPPORTUNITIES THAT SPIN OFF OF THAT IMPERIAL BROOM CO IN RICHMOND VA HAS SOLD 1000 COLONIALSTYLE BROOMS IN THE PAST SIX MONTHS TO PEOPLE WANTING TO JUMP THE BROOM IN WHICH A COUPLE LEAPS INTO MATRIMONY OVER A BROOM LYING ON THE GROUND THE RITUAL BASED ON THE BROOM AS A SYMBOL OF THE HOME IN PARTS OF AFRICA WAS BEGUN BY SLAVES BECAUSE THEY INITIALLY WEREN'T ALLOWED TO LEGALLY MARRY THREE YEARS AGO THERE WAS VIRTUALLY NO INTEREST IN THE BROOMS THE COMPANY SAYS THEN IN 1991 IT SOLD 500 AND LAST YEAR 1000 WASHINGTON'S DANITA ROUNTREE GREEN HAS SOLD ABOUT 6700 COPIES OF HER 1992 PRIMER BROOM JUMPING A CELEBRATION OF LOVE AND RECENTLY STARTED THE NEWSLETTER BROOM LADY TO ADVERTISE AFROCENTRIC BRIDAL SERVICES OTHER PRODUCTS WHOSE SALES ARE RISING INCLUDE CARIBBEAN BLACK CAKES A KIND OF FRUITCAKE WEDDING BANDS ENGRAVED WITH HIEROGLYPHICS AND DINNER JACKETS OF COLORFUL AFRICAN KENTE CLOTH AFROCENTRIC WEDDING PURVEYORS FACE PLENTY OF CHALLENGES AMERICAN WEDDING CEREMONIES ARE STEEPED IN OTHER TRADITIONS SUCH AS TOSSING THE GARTER AND BOUQUET THAT MANY FAMILIES AREN'T KEEN ON CHANGING MOREOVER SINCE AFRICAN TRADITIONS ARE FOREIGN TO MOST BLACKS VENDORS FIND THEMSELVES SPENDING EXTRA TIME ON EDUCATION ONLY TO FIND SOME COUPLES UNINTERESTED I'M SURE THIS IS JUST A FAD EVERYBODY IS DOING IT BECAUSE IT'S SOMETHING NEW BUT IT'LL FADE AWAY SAYS MATTHEW J ROBINSON JR PRESIDENT OF IMPERIAL BROOM WHICH WAS FOUNDED BY A FORMER SLAVE IN 1905 TO MAKE BRIDAL BROOMS IT WAS QUICKLY FORCED TO DIVERSIFY INTO COMMERCIAL BROOMS EXPERTS SAY INTEREST IN ETHNIC WEDDING TRADITIONS HAS GROWN NOT DIMINISHED AS MORE PEOPLE TAKE SPOUSES OF DIFFERENT RACES CULTURES AND FAITHS PEOPLE ARE REALLY EAGER TODAY TO TAKE THE CUSTOMS OF THEIR HERITAGE AND BLEND THEM CELEBRATE THEM SAYS BARBARA TOBER EDITOR OF BRIDE'S & YOUR NEW HOME MAGAZINE THEY MAY WALK AWAY SHAKING THEIR HEADS A LITTLE BIT SHE ADDS BUT WHAT THEY'RE DOING IS CELEBRATING THEIR DIFFERENCES MANY AFRICANAMERICANS ARE JUST NOW EMBRACING AFRICAN TRADITIONS THE AUTHOR MS ROUNTREEGREEN SAYS BECAUSE FOR SO LONG AFRICANAMERICANS HAVE BEEN PUSHING OUR CULTURE AWAY FROM US WE WERE EMBARRASSED BECAUSE WE CAME FROM CHAINS BUT SLAVERY IS SUCH A SMALL PART OF OUR HISTORY SHE SAYS THERE'S NO NEED FOR AFRICAN DESCENDANTS LIVING ANYWHERE TO BE ASHAMED NOT EVERY AFRICANAMERICAN COUPLE IS INTERESTED IN INCORPORATING FOREIGN TRADITIONS IN THEIR CEREMONIES NORMA AND STEPHEN JAYNES OF FRAMINGHAM MASS DECIDED AGAINST INCLUDING ANYTHING AFRICAN IN THEIR CEREMONY THREE MONTHS AGO BECAUSE WE'RE NOT ORIGINALLY FROM AFRICA SO IT WOULDN'T BE THAT SYMBOLIC TO US WE'D JUST BE HOPPING ON A TREND SAYS MRS JAYNES ADDS ALICIA TERRY WHO PLANS TO WED IN MILWAUKEE THIS SEPTEMBER I THOUGHT ABOUT USING A BROOM BUT I DECIDED NOT TO BECAUSE I DIDN'T KNOW HOW IT WOULD GO OVER WITH MY GUESTS MANY PEOPLE DON'T KNOW THE REAL SIGNIFICANCE OF IT WHILE A FEW BLACK MUSLIMS SAY THEY ARE ADDING CULTURAL TOUCHES TO THEIR CEREMONIES ACADEMICS REPORT THAT MOST ARE FOLLOWING STRICT ISLAMIC PRACTICES LIKEWISE A SPOKESWOMAN FOR THE NATION OF ISLAM SAYS ITS MEMBERS CONTINUE TO CONDUCT STANDARD ISLAMIC CEREMONIES COUPLES' TASTES AREN'T THE ONLY PROBLEM BRIDES TODAY MAGAZINE A NORTHBROOK ILL BIMONTHLY AIMED AT AFRICANAMERICANS IN TWO YEARS HAS GONE TO MORE THAN 125000 SUBSCRIBERS BUT IT STILL HAS TROUBLE GETTING ADVERTISERS TO PROVIDE APPROPRIATE COPY MORE THAN HALF OF THE COMPANIES INTERESTED IN ADVERTISING WON'T PROVIDE PICTURES OF THEIR PRODUCTS ON BLACK MODELS SAYS DEBI LEWISKEARNS MANAGING EDITOR WE HAVE TO PAY TO RESHOOT THE DRESSES FOR THE ADS SHE SAYS ALTHOUGH IT HASN'T BEEN EASY WE'VE BEEN ABLE TO DO IT HIGHER PRICES ARE ALSO A POTENTIAL BARRIER KUUMBA KOLLECTIBLES A GREETING CARD COMPANY BASED IN WASHINGTON SELLS WEDDING INVITATIONS PROGRAMS AND THANKYOU CARDS WITH AN AFRICAN TWIST SINCE THE CARDS ARE CUSTOMDESIGNED FOR EACH WEDDING POSSIBLY FEATURING FOR EXAMPLE KENTE CLOTH BORDERS SILHOUETTES OF AFRICAN FACES OR HIEROGLYPHIC SYMBOLS PRICES RANGE FROM 100 TO 200 FOR 100 INVITATIONS COMPARED WITH 45 TO 75 FOR 100 REGULAR INVITATIONS SALA DAMALI COOWNER SAYS THAT ONCE COUPLES ARE SOLD ON THE CONCEPT PRICE ISN'T AN ISSUE BECAUSE SHE HAS FEW COMPETITORS PEOPLE WANT TO PREPARE GUESTS FOR WHAT THEY'LL SEE WHEN THEY COME TO THE WEDDING INVITATIONS SET THE TONE SHE SAYS KUUMBA KOLLECTIBLES WHICH DERIVES ITS NAME FROM THE SWAHILI WORD FOR CREATIVE DESIGNED INVITATIONS FOR ABOUT 100 WEDDINGS IN 1992 AND ABOUT 50 IN 1991 THE FIRST YEAR IT OFFERED THE SERVICE SO FAR THIS YEAR THE NUMBER HAS ALREADY REACHED 100 SOME ENTREPRENEURS CONCEDE THAT UNTIL RECENTLY THEY WEREN'T VERY FAMILIAR WITH AFRICAN TRADITIONS THEMSELVES MS MITCHELL OF THE DETROIT WEDDING CHAPEL SAYS SHE AND HER PARTNER DIANE HAWKINS ARE BEING TUTORED BY A MAN ON THE DETROIT BOARD OF EDUCATION AND WE ALSO HAVE A YORUBA PRIEST WHO IS TUTORING US 9308240124 930824 ROSE'S STORES LOSS MORE THAN DOUBLED IN FISCAL 2ND QUARTER HENDERSON NC ROSE'S STORES INC REPORTED THAT ITS FISCAL SECONDQUARTER LOSS MORE THAN DOUBLED FROM A YEAR EARLIER AND SAID IT IS CONSIDERING AMONG OTHER OPTIONS SELLING THE COMPANY OR RESTRUCTURING IN BANKRUPTCY COURT NEWS OF THE WIDENING LOSS AND THE COMPANY'S OUTLOOK PUSHED ROSE'S STOCK DOWN SHARPLY IN OVERTHECOUNTER TRADING ITS VOTING STOCK CLOSED AT 1625 A SHARE OFF 1375 OR 46 WHILE ITS NONVOTING CLASS B STOCK FELL TO 11875 A SHARE DOWN 10625 OR 47 FOR THE QUARTER ENDED JULY 31 ROSE'S POSTED A NET LOSS OF 116 MILLION OR 62 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 57 MILLION OR 31 CENTS A SHARE SALES FELL 28 TO 3018 MILLION FROM 3105 MILLION SAMESTORE SALES DROPPED 37 FROM A YEAR EARLIER FOR THE FISCAL YEAR TO DATE SAMESTORE SALES HAVE FALLEN 4 THE COMPANY SAID ITS LIMITED BORROWING ABILITY HAS PREVENTED IT FROM RESTOCKING ITS SHELVES AS NEEDED RESULTING IN POOR SALES TO IMPROVE ITS LIQUIDITY ROSE'S SAID IT IS NEGOTIATING WITH PROSPECTIVE LENDERS TO REPLACE OR EXTEND ITS WORKING CAPITAL FACILITY THAT FACILITY PROVIDES A PEAK AVAILABILITY OF 574 MILLION TO DATE WHILE SOME COMMITMENTS HAVE BEEN OBTAINED THE ENTIRE REQUIREMENT HAS NOT BEEN COMMITTED NOR HAS A CLOSING DATE BEEN SET THE COMPANY SAID IN A PREPARED STATEMENT MOREOVER EXISTING LENDERS WILL HAVE TO AGREE TO CONCESSIONS FOR ROSE'S TO OBTAIN A NEW CAPITAL FACILITY AND THE COMPANY SAID THERE IS NO GUARANTEE THE CONCESSIONS WILL BE MADE ACCORDINGLY ROSE'S SAID IT IS CONSIDERING OTHER ALTERNATIVES INCLUDING REFINANCING OR RESTRUCTURING ITS LONGTERM DEBT AN EQUITY INFUSION STORE CLOSINGS INVENTORY REDUCTIONS THE SALE OF THE COMPANY OR A RESTRUCTURING UNDER CHAPTER 11 OF THE BANKRUPTCY CODE ROSE'S HAS 215 DISCOUNT STORES IN 11 SOUTHEASTERN STATES THE COMPANY SAID IT WOULDN'T SEEK TO RESTRUCTURE UNDER CHAPTER 11 UNLESS IN MANAGEMENT'S JUDGMENT THE OTHER ALTERNATIVES DON'T SERVE THE BEST INTERESTS OF THE STOCKHOLDERS 9308240123 930824 CANADIAN RETAIL SALES DROP OTTAWA CANADIAN RETAIL SALES DECLINED 07 IN JUNE TO A SEASONALLY ADJUSTED 1601 BILLION CANADIAN DOLLARS US1215 BILLION FROM C1612 BILLION IN MAY STATISTICS CANADA A GOVERNMENT AGENCY SAID THE JUNE DECLINE WAS LED BY A 23 DROP IN SALES BY AUTO DEALERS RETAIL SALES INCREASED 02 IN MAY AND 12 IN APRIL 9308240122 930824 WELLCARE COMPLETES OFFERING KINGSTON NY WELLCARE MANAGEMENT GROUP INC SAID IT COMPLETED AN INITIAL PUBLIC OFFERING THAT RAISED 208 MILLION FOR THE MANAGED HEALTH CARE COMPANY WHICH OPERATES A HEALTH MAINTENANCE ORGANIZATION IN THE HUDSON RIVER VALLEY AND ALBANY REGIONS OF NEW YORK WELLCARE WILL USE PROCEEDS TO REPAY DEBT AND FOR WORKING CAPITAL IT TRADES UNDER THE NASDAQ SYMBOL WELL THE COMPANY SOLD 25 MILLION COMMON SHARES INCLUDING 538000 SHARES SOLD BY CERTAIN SHAREHOLDERS AT 1175 EACH 9308240121 930824 WHO'S NEWS TECHNICAL COMMUNICATIONS CORP TECHNICAL COMMUNICATIONS CORP CONCORD MASS JOHN FACELLA WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF THIS MAKER OF SECURE COMMUNICATIONS SYSTEMS MR FACELLA 45 YEARS OLD SUCCEEDS ARNOLD M MCCALMONT IN THOSE TWO POSITIONS MR MCCALMONT 64 WILL REMAIN CHAIRMAN PRIOR TO JOINING TECHNICAL COMMUNICATIONS MR FACELLA HAD RESPONSIBILITY FOR MOTOROLA INC'S INTERNATIONAL SECURE LAND MOBILE PRODUCTS 9308240120 930824 WHO'S NEWS RAMSAY HEALTH CARE INC RAMSAY HEALTH CARE INC NEW ORLEANS JACK V EUMONT JR CURRENTLY VICE PRESIDENT AND CORPORATE CONTROLLER WAS NAMED CHIEF FINANCIAL OFFICER OF THIS PSYCHIATRIC SERVICES COMPANY HE SUCCEEDS BRUCE R SODEN WHO RESIGNED FROM THE POST MR SODEN IS EXPECTED TO BE ELECTED TO THE BOARD AT ITS NEXT MEETING FILLING THE VACANCY OF JOHN H RANDALL WHO RESIGNED BECAUSE OF AN INCREASED WORKLOAD 9308240119 930824 SUPERMARKETS GENERAL PRESENTS NEW PLAN TO RECAPITALIZE DEBT WOODBRIDGE NJ SUPERMARKETS GENERAL CORP PROPOSED YET ANOTHER RECAPITALIZATION PLAN AIMED AT LOWERING ITS INTEREST COSTS AND BOLSTERING ITS SUPERMARKET AND DRUGSTORE OPERATIONS THE UNIT OF SUPERMARKETS GENERAL HOLDINGS CORP LAST MONTH SHELVED PLANS TO RAISE 150 MILLION FROM A PUBLIC OFFERING OF ITS PATHMARK STORES UNIT CITING DEPRESSED EARNINGS DUE TO A STRIKE AGAINST NEW JERSEY GROCERY STORE CHAINS THE NEW PLAN HOWEVER APPEARS TO POSITION THE COMPANY FOR A POSSIBLE OFFERING LATER ON UNDER THE NEW PLAN SUPERMARKETS GENERAL IS SETTING UP A NEW HOLDING COMPANY THAT WILL OWN THE PATHMARK STORES BUSINESS IN ADDITION THE NEW COMPANY WILL HOLD IN A SEPARATE UNIT ITS RICKEL HOMECENTER BUSINESS AS WELL AS THE WAREHOUSE AND TRANSPORTATION FACILITIES THAT SERVICE THE SUPERMARKETS AND DRUGSTORES SUPERMARKETS GENERAL IS ABOUT 33OWNED BY EQUITABLE LIFE ASSURANCE SOCIETY OF THE US A UNIT OF EQUITABLE COS AND MORE THAN 50OWNED BY MERRILL LYNCH CAPITAL MARKETS INC A UNIT OF MERRILL LYNCH & CO THE COMPANY AMONG THE 10 LARGEST SUPERMARKET CHAINS IN THE US HAS ABOUT 13 BILLION OF DEBT OUTSTANDING THE LATEST PLAN ESSENTIALLY WILL RECAPITALIZE THAT ENTIRE AMOUNT IT INCLUDES A CURRENT OFFER TO EXCHANGE AS MUCH AS 200 MILLION OF NEW NOTES FOR ITS 11625 SUBORDINATED NOTES LAST WEEK THE OFFER WAS EXTENDED TO AUG 31 WITH MORE THAN 85 OF THE NOTES HAVING BEEN TENDERED THE LATEST PLAN ALSO CALLS FOR A NEW 400 MILLION BANK CREDIT AGREEMENT A 175 MILLION WORKING CAPITAL FACILITY THE SALE OF 425 MILLION OF NEW SENIOR SUBORDINATED NOTES THE SALE OF 120 MILLION OF NEW JUNIOR SUBORDINATED DEFERRED COUPON NOTES AND AN OFFER TO EXCHANGE OR PURCHASE 100 MILLION OF 12625 DEBENTURES IN ADDITION THE COMPANY WILL ISSUE TO EQUITABLE 130 MILLION OF DEFERRED INTEREST BONDS DUE 2003 FOR THE SAME AMOUNT OF 12625 DEBENTURES HELD BY EQUITABLE 9308240118 930824 WHO'S NEWS MONRO MUFFLER BRAKE INC MONRO MUFFLER BRAKE INC ROCHESTER NY CATHERINE D'AMICO 37 YEARS OLD PREVIOUSLY SENIOR AUDIT MANAGER WITH PRICE WATERHOUSE IN ROCHESTER NY WAS NAMED SENIOR VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER OF THIS UNDERCAR REPAIR CHAIN SHE SUCCEEDS JARRET LOBB WHO STEPPED DOWN FROM THOSE POSTS FOR HEALTH REASONS MR LOBB 47 WILL BECOME VICE PRESIDENT SYSTEMS DEVELOPMENT A NEWLY CREATED POST 9308240117 930824 WHO'S NEWS INTERNATIONAL BUSINESS MACHINES CORP INTERNATIONAL BUSINESS MACHINES CORP ARMONK NY JEANPIERRE BRIANT 54 WAS NAMED VICE PRESIDENT MANUFACTURING OF THIS COMPUTER COMPANY EFFECTIVE SEPT 30 HE WILL SUCCEED HEINZ FRIDRICH 60 WHO WILL RETIRE MR BRIANT HAD BEEN AN ASSISTANT GENERAL MANAGER IN IBM'S MICROCHIP DIVISION 9308240116 930824 WHO'S NEWS RAYTHEON CO RAYTHEON CO LEXINGTON MASS ROY H NORRIS III WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF RAYTHEON CORPORATE JETS RAYTHEON CORPORATE JETS FORMED EARLIER THIS MONTH WHEN RAYTHEON ACQUIRED BRITISH AEROSPACE INC'S CORPORATE JET BUSINESS MANUFACTURES MIDSIZE BUSINESS JETS MR NORRIS HAS BEEN AN AEROSPACE CONSULTANT SINCE LEAVING HIS JOB IN DECEMBER 1992 AS SENIOR VICE PRESIDENT FOR MARKETING AND SALES AT GULFSTREAM AEROSPACE CORP SAVANNAH GA MR NORRIS SUCCEEDS WILLIAM BOISTURE WHO WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE BRITISH AEROSPACE UNIT MR BOISTURE CHOSE NOT TO JOIN RAYTHEON ONCE THE PURCHASE WAS COMPLETED A RAYTHEON SPOKESPERSON SAID 9308240115 930824 INTERNATIONAL COMMERCIAL RADIO FINDS EAGER EARS BUT FEW ADS IN THE FORMER EAST BLOC BY SHAILAGH MURRAY SPECIAL TO THE WALL STREET JOURNAL PRAGUE DENIS O'BRIEN CALLS IT THE GOOD WORK OF THE MISSIONARIES AN ANCIENT IRISH TRADITION HAVING CONVERTED DUBLIN AND PRAGUE HE IS LOOKING FOR NEW FOLLOWERS ALL THE WAY TO THE URALS THE GOSPEL HE IS SPREADING COMMERCIAL RADIO AT ITS MOST UNABASHED MR O'BRIEN'S 10MONTHOLD PRAGUE STATION KISS 98 FM IS CLASSIC WESTERN HYPE BETWEEN BEATLES FAVORITES AND THE LATEST FROM ROXETTE THE ROCK STATION BLITZES LISTENERS WITH OUTRAGEOUS CONTESTS FOR EVERYTHING FROM LOTTERY TICKETS TO A NEW BMW A MAN RECENTLY CRAWLED ACROSS THE CHARLES BRIDGE IN PRAGUE BLOWING A PINGPONG BALL THROUGH A STRAW ALL TO WIN A WATCH KISS NOW DRAWS A WEEKLY LISTENING AUDIENCE OF A QUARTER MILLION MAKING IT ONE OF PRAGUE'S TOP TWO MUSIC STATIONS BUOYED BY THE RESPONSE MR O'BRIEN AND HIS PARTNERS ARE BUSY JETTING FROM VILNIUS LITHUANIA TO KIEV UKRAINE TO WARSAW IN AN EFFORT TO EXPAND THEIR HOLDINGS WITHIN THREE YEARS MR O'BRIEN HOPES TO ASSEMBLE A DOZEN STATIONS IN CENTRAL AND EASTERN EUROPE IT'S NOT MEGALOMANIA SAYS THE BUBBLY 34YEAROLD THIS IS WHAT'S HAPPENING THIS IS THE TIME TO GET OUT AND DO IT BIG PROFITS ARE IN THE AIR MAJOR PLAYERS SUCH AS FRANCE'S EUROPE DEVELOPPEMENT CLT MULTIMEDIA OF LUXEMBOURG AND SCORES OF LOCAL ENTREPRENEURS ARE JUMPING INTO EASTERN EUROPE'S FLEDGLING COMMERCIALRADIO INDUSTRY WHILE RUSSIA UKRAINE AND HUNGARY HAVE YET TO SETTLE ON COMPREHENSIVE REGULATIONS THE CZECH REPUBLIC SLOVAKIA AND POLAND HAVE ALL MADE SIGNIFICANT STEPS TO OPEN RADIO LICENSING FOR FOREIGN AND DOMESTIC INTERESTS AS MR O'BRIEN AND OTHERS SEE IT THOSE WILLING TO LIVE OUT OF A SUITCASE AND LIGHT FIRES UNDER LAWMAKERS COULD SHAPE MARKETS IN EASTERN EUROPE FOR YEARS TO COME BUT FOR SOME THE STATIC MAY BE OVERWHELMING MANY LAWS REMAIN UNWRITTEN ADVERTISERS ARE SCARCE AND SLOW TO BE CONVINCED COMPETITION CAN BE AS STIFF AS IN WESTERN CITIES AND THE RETURNS AREN'T ALWAYS IMMEDIATE OR GUARANTEED PARTICULARLY FOR OWNERS NEW TO THE GAME AS MR O'BRIEN PUTS IT THERE ARE PLENTY OF RADIO LICENSES BUT IT'S REALLY ABOUT HAVING THE WHEREWITHAL TO EXPLOIT IT FROM A COMMERCIAL POINT OF VIEW PRAGUE HAS BECOME THE CITY FOR LEARNING THE PITFALLS AND POTENTIAL OF EASTERN MARKETS CZECHOSLOVAKIA PASSED A LICENSING LAW IN 1991 WELL BEFORE ITS EASTERN NEIGHBORS OF THE 44 PRIVATE RADIO STATIONS APPROVED FOR THE CZECH REPUBLIC 37 ARE NOW OPERATING 14 OF THEM IN PRAGUE FLICK ACROSS THE CITY'S FM DIAL AND THERE'S SOMETHING FOR EVERYONE HANK WILLIAMS EDITH PIAF CALLIN SHOWS TRAFFIC REPORTS YET ONLY A FEW OF THE MOST POPULAR STATIONS ROCK AND COUNTRY COME CLOSE TO FILLING THEIR TARGETS FOR ADVERTISING SLOTS THE MAJORITY ARE STRUGGLING AIRING ONLY A SPRINKLE OF ADS EVEN DURING PEAK HOURS PART OF THE PROBLEM IS THAT FEW LOCAL ADVERTISERS CAN YET AFFORD THE RATES WHICH AVERAGE ABOUT 65 FOR A 30SECOND SPOT DURING PRIME TIME THE OTHER REASON IS THAT THOSE WHO CAN AFFORD THE SPOTS MAINLY FOREIGN COMPANIES AREN'T CONVINCED THE RESULTS ARE WORTH THE EFFORT ABOUT 80 OF SPENDING IN A TYPICAL AD CAMPAIGN IN PRAGUE GOES TO TELEVISION MAGAZINES AND NEWSPAPERS WITH ONLY 10 TO 15 GOING TO RADIO BASICALLY THE SAME BREAKDOWN AS IN ANY MAJOR WESTERN CITY ACCORDING TO JOSEF HAVELKA MANAGING DIRECTOR IN PRAGUE FOR NEW YORKBASED AD AGENCY LEO BURNETT CO THE MEDIUM MIGHT PROVE MORE APPEALING HE SAYS IF MARKETERS KNEW BETTER WHOM THEY WERE REACHING EVEN MOST STATIONS CONCEDE THEY AREN'T SURE UNFORTUNATELY WE HAVE YET TO DO AN AUDIENCE SURVEY LAMENTS JAN VALESKA CHIEF EDITOR AT RADIO METROPOLIS A FOURMONTHOLD ENGLISHLANGUAGE STATION WITH AN ALBUMORIENTED ROCK FORMAT THE LACK OF DATA AND THE CHAOS OF GETTING STARTED HAVE LEFT METROPOLIS ALMOST ADLESS MR VALESKA ESTIMATES THAT TO BREAK EVEN THE STATION MUST SELL TWO TO THREE MINUTES OF ADS EVERY HOUR SELLING TWICE THAT NUMBER THE STATION'S GOAL WOULD BRING IN AN ANNUAL PROFIT OF ABOUT 102000 YOU CAN SEE HE SAYS WE'RE NOT EXPECTING TO MAKE A LOT OF MONEY LIKE RADIO METROPOLIS MOST OF PRAGUE'S SMALL STATIONS ARE AIMED AT PARTICULAR LISTENERS WHETHER OPERA BUFFS OR METAL HEADS BUT HOWEVER LOYAL THEIR AUDIENCES MR HAVELKA ADMITS THEY'RE TOO NARROW FOR MOST OF HIS CLIENTS SUCH AS PROCTER & GAMBLE AND FIAT WHICH ARE STILL TRYING TO INTRODUCE PRODUCTS ON A LARGE SCALE THERE IS A LOT OF ENTHUSIASM BEHIND THESE ENTERPRISES BUT NOT BASED ON REVENUE POTENTIAL HE SAYS FOR LOCAL OWNERS THE LURE OF OWNING A RADIO STATION SEEMS TO BE BASED MORE ON PRESTIGE AND GLAMOR MOST OBSERVERS BELIEVE ONLY PRAGUE'S TOP THREE OR SO COMMERCIAL STATIONS ARE TURNING TIDY PROFITS PETR DVORAK GENERAL MANAGER OF CITY RADIO ANOTHER FM ROCK STATION SAYS HIS RESEARCH SHOWS THAT IN 1992 THE CITY'S TOTAL RADIO ADVERTISING MARKET AMOUNTED TO 34 MILLION A STATION NEEDS TO PULL IN 500000 TO 675000 A YEAR TO PROSPER HE SAYS SO YOU CAN SEE THE REAL COMPETITION IS TO GET YOURSELF INTO THE TOP FIVE AND THE REST I DON'T KNOW HOW THEY WILL SURVIVE EUROPE DEVELOPPEMENT THE MUSIC RADIO SUBSIDIARY OF EUROPE 1 COMMUNICATION IN PARIS HAS PROVEN A LEADER AMONG THE MEDIA CONGLOMERATES MOVING EAST THE COMPANY HAS A 55 STAKE IN THE SOONTOBELAUNCHED FREQUENCY 1 A FOLKSY TALKORIENTED STATION THAT WILL REACH MOST OF THE CZECH REPUBLIC IT ALSO HAS FILED FOR A LICENSE IN BRATISLAVA AND IS NEGOTIATING A DEAL FOR A STATION IN SLOVAKIA'S SECONDLARGEST CITY KOSICE IN 1990 EUROPE DEVELOPPEMENT LAUNCHED EUROPA PLUS THE FIRST PRIVATE RADIO STATION IN MOSCOW AND HAS SINCE EXPANDED TO A NETWORK OF STATIONS IN POLAND IT OWNS 35 OF THE NEWSORIENTED RADIO ZET WARSAW'S NO 1 STATION ANOTHER WESTERN PLAYER IS CLT MULTIMEDIA WHICH OWNS A 49 STAKE IN CITY RADIO AND MINORITY SHARES IN TWO BUCHAREST STATIONS AND ONE IN BRATISLAVA POLAND IS GENERALLY CONSIDERED THE NEXT GREAT MARKET TO MINE AFTER CONSIDERABLE WRANGLING THE POLISH GOVERNMENT PASSED A BILL IN DECEMBER THAT ALLOWS FOR AS MANY AS 250 NEW COMMERCIAL STATIONS ON THE OTHER HAND HUNGARY HAS HAD SUCH TROUBLE COMING UP WITH A LICENSING LAW THAT ONE VERSION WITH HUNDREDS OF AMENDMENTS DIDN'T MUSTER A SINGLE VOTE BUT THAT'S ALL IN A DAY'S WORK FOR PEOPLE LIKE MR O'BRIEN HE ESTIMATES HE'S BEEN TO BUDAPEST 50 TIMES IN THE PAST THREE YEARS TRYING TO LINE UP DEALS AND COAX THE PROCESS ALONG YOU HAVE TO BE PATIENT HE SAYS WHEN THEY SAY NO YOU JUST COME BACK THE NEXT DAY 9308240114 930824 WHO'S NEWS RYDER SYSTEM INC RYDER SYSTEM INC MIAMI JOHN A GEORGES AND LYNN MARTIN WERE ELECTED DIRECTORS OF THIS TRANSPORTATION SERVICES COMPANY MR GEORGES 60 IS CHAIRMAN AND CHIEF EXECUTIVE OF INTERNATIONAL PAPER CO MS MARTIN 53 SERVED AS SECRETARY OF LABOR IN THE BUSH ADMINISTRATION AND CURRENTLY HEADS DELOITTE & TOUCHE'S COUNCIL FOR THE ADVANCEMENT OF WOMEN AND SERVES AS AN ADVISER TO THE FIRM THE ELECTIONS INCREASE THE SIZE OF THE BOARD TO 13 9308240113 930824 WHO'S NEWS BORDEN INC BORDEN INC NEW YORK RUSSELL S MENTZER WAS NAMED PRESIDENT OF THIS FOOD CONSUMER PRODUCTS AND PACKAGING PRODUCT COMPANY'S NORTH AMERICAN PASTA PRODUCTS GROUP AND A VICE PRESIDENT OF NORTH AMERICAN FOODS PREVIOUSLY VICE PRESIDENT OF SALES AND MARKETING FOR NORTH AMERICAN PASTA PRODUCTS MR MENTZER 46 SUCCEEDS LEE N ARST 47 WHO LEFT THE COMPANY 9308240112 930824 ASHLAND OIL SETS 25 MILLION JOB ASHLAND KY ASHLAND OIL INC SAID IT WILL REACTIVATE AND RENOVATE A DEASPHALTING UNIT THAT HAD BEEN IDLED FOR 10 YEARS AT ITS CATLETTSBURG KY REFINERY THE PETROLEUM CONCERN SAID THE PROJECT WILL COST 25 MILLION BUT WILL INCREASE THE PERMANENT WORK FORCE BY ONLY A FEW THE DEASPHALTING MACHINERY WILL REDUCE THE REFINERY'S CRUDEOIL COSTS BY 15 CENTS TO 40 CENTS A BARREL ASHLAND SAID 9308240111 930824 SYSCO COMPLETES ACQUISITION HOUSTON SYSCO CORP SAID IT COMPLETED ITS ACQUISITION OF PRIVATELY HELD RITTER FOOD CORP OF ELIZABETH NJ TERMS WEREN'T DISCLOSED THE COMPANIES ARE FOODSERVICE SUPPLIERS 9308240110 930824 TELEDYNE TO PLEAD GUILTY SECOND TIME IN 10 MONTHS TO CHARGES OF LYING TO US BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES FOR THE SECOND TIME IN 10 MONTHS A TELEDYNE INC UNIT AGREED TO PLEAD GUILTY TO CRIMINAL CHARGES OF LYING TO THE GOVERNMENT THE COMPANY ALREADY REELING FROM A SERIES OF CRIMINAL AND CIVIL CASES YESTERDAY DISCLOSED NEW CHARGES INVOLVING SALES TO TAIWAN IN THE 1980S THE PRIOR CASES INVOLVED ALLEGED OVERCHARGES FALSE TESTING OF ELECTRONIC PARTS SOLD TO THE PENTAGON ACCUSATIONS OF ILLEGAL EXPORTS AND CLAIMS OF IMPROPER OVERSEAS COMMISSIONS THE COMPANY SAID THAT ITS TELEDYNE INDUSTRIES UNIT AGREED TO PAY A 15 MILLION FINE AND PLEAD GUILTY TO THREE FELONY COUNTS OF SUBMITTING FALSE STATEMENTS IN CONNECTION WITH THE TAIWAN SALES THE CHARGES ACCORDING TO THE COMPANY STEM FROM TELEDYNE'S USE OF A TAIWANESE REPRESENTATIVE BETWEEN 1984 AND 1988 AND THE COMPANY'S DECEPTION OF GOVERNMENT AUDITORS ABOUT THE NATURE OF THE FEE ARRANGEMENT INTERNAL TELEDYNE DOCUMENTS FAILED TO MENTION THE EXISTENCE OF AN ORAL AGREEMENT TO PAY THE AGENT COMMISSIONS ON CERTAIN ORDERS THE COMPANY ACKNOWLEDGED TELEDYNE DIDN'T IDENTIFY THE AGENT THE SIZE OF THE CONTRACTS OR THE EQUIPMENT INVOLVED AND A SPOKESWOMAN DECLINED TO PROVIDE ADDITIONAL DETAILS JUSTICE DEPARTMENT PROSECUTORS COULDN'T BE REACHED FOR COMMENT BUT TELEDYNE'S THREEPARAGRAPH NEWS RELEASE WHICH NOTED THAT THE FIRM PREVIOUSLY DISCIPLINED A NUMBER OF EMPLOYEES AND SAID THE COMPANY REGRETTED ITS ILLEGAL CONDUCT SUGGESTED THAT THE COMMISSIONS WERE PAID ON SALES OF MILITARY EQUIPMENT TO TAIWAN THE CHARGES RELATE TO THE TELEDYNE SYSTEMS UNIT UNDER TELEDYNE INDUSTRIES IN THE COMPANY'S STRUCTURE TELEDYNE SYSTEMS AMONG OTHER THINGS MAKES AIRCRAFT GUIDANCE AND NAVIGATION SYSTEMS WHILE THE COMPANY SAID IT VOLUNTARILY DISCLOSED THE IMPROPRIETIES TO THE GOVERNMENT THE JUSTICE DEPARTMENT'S DEMAND FOR A CRIMINAL PLEA HIGHLIGHTS TELEDYNE'S MOUNTING LEGAL TROUBLES THE CASE COULD ALSO PROMPT THE PENTAGON TO BAR THE UNIT FROM NEW BUSINESS AFTER THE FORMAL GUILTY PLEA IS RECEIVED SEPT 13 IN FEDERAL COURT IN LOS ANGELES THE COMPANY'S TELEDYNE ELECTRONICS UNIT LAST MONTH AGREED TO PAY THE GOVERNMENT 10 MILLION FOR FAILING TO PERFORM CERTAIN MANDATORY TESTS ON A PART USED IN THE ARMY'S STINGER MISSILE AS PART OF SWEEPING CORPORATE REALIGNMENT AND PERSONNEL CHANGES INTENDED TO RESTORE THE COMPANY'S CREDIBILITY FORMER AIR FORCE SECRETARY DONALD RICE WAS RECRUITED IN MARCH TO BECOME TELEDYNE'S PRESIDENT AND CHIEF OPERATING OFFICER TELEDYNE HAS SAID MR RICE WAS HIRED FOR HIS MANAGERIAL SKILLS RATHER THAN TO BUFF THE COMPANY'S IMAGE SINCE TAKING OFFICE THE NEW PRESIDENT HAS SAID THAT THE COMPANY HAS ACCELERATED AUDITS TO ENSURE COMPLIANCE WITH FEDERAL CONTRACTING RULES TELEDYNE STILL FACES CLAIMS AMOUNTING TO WELL OVER 100 MILLION IN VARIOUS PENDING CIVIL CASES FILED BY WHISTLEBLOWERS OR THE GOVERNMENT AND THE COMPANY'S LAWYERS HAVE ENGAGED IN PRELIMINARY DISCUSSIONS TO TRY TO SETTLE ITS LEGAL ISSUES OUTSTANDING AS PART OF A SINGLE PACKAGE BUT SOME JUSTICE DEPARTMENT PROSECUTORS ARE RESISTING SUCH A SOCALLED GLOBAL SETTLEMENT THESE INVESTIGATORS CONTEND THAT PENDING CRIMINAL INVESTIGATIONS OF TELEDYNE'S OVERSEAS OPERATIONS ESPECIALLY IN EGYPT AND OTHER MIDDLE EASTERN COUNTRIES SHOULD CONTINUE AND SHOULDN'T BE INCLUDED IN SETTLEMENT TALKS LAST NOVEMBER TELEDYNE INC THE LOS ANGELESBASED AVIATION INDUSTRIAL AND CONSUMERPRODUCTS PARENT COMPANY PLEADED GUILTY AND PAID A 175 MILLION FINE FOR FALSIFYING TESTS ON ELECTRONIC RELAY SWITCHES SOLD TO THE PENTAGON A FEW MONTHS LATER THE TELEDYNE RELAYS UNIT THAT HAD BEEN RESPONSIBLE FOR THE PHONY TESTS WAS BANNED FROM RECEIVING NEW GOVERNMENT BUSINESS FOR A YEAR JUST THREE MONTHS AGO THE COMPANY WAS INDICTED BY A FEDERAL GRAND JURY IN MIAMI ON CHARGES OF ILLEGALLY EXPORTING ZIRCONIUM THAT ULTIMATELY WAS USED IN CLUSTER BOMBS SOLD TO IRAQ COMPANY OFFICIALS HAVE DENIED THOSE CHARGES 9308240109 930824 WHO'S NEWS BANKAMERICA CORP BANKAMERICA CORP SAN FRANCISCO JACK L MEYERS 50 YEARS OLD AN EXECUTIVE VICE PRESIDENT WHO HAD BEEN DIRECTING THIS BANK'S COMMERCIAL BANKING ACTIVITIES HAS BEEN NAMED HEAD OF CREDIT POLICY HE SUCCEEDS 49YEAROLD VICE CHAIRMAN MICHAEL E ROSSI WHO IS TAKING OVER A MIX OF ACTIVITIES THAT INCLUDES COMMERCIAL BANKING IN OTHER MANAGEMENT CHANGES BANKAMERICA SAID PETER MCPHERSON 52 AN EXECUTIVE VICE PRESIDENT OF THE INVESTMENT MANAGEMENT GROUP IS LEAVING THE COMPANY BY JAN 1 TO TAKE A NEW JOB AS PRESIDENT OF MICHIGAN STATE UNIVERSITY SEPARATELY BANKAMERICA'S UNIT BANK OF AMERICA SAID IT PROMOTED ANNIRUDDHA ROY 41 TO EXECUTIVE VICE PRESIDENT MR ROY IS HEAD OF BANK OF AMERICA'S INVESTMENT BANKING GROUP AND IS RESPONSIBLE FOR CAPITALRAISING ACTIVITIES IN THE US 9308240108 930824 ECONOMY JAPAN AUTO MAKERS BUY MORE US PARTS STRONG YEN CITED FOR CONTENT CHANGE IN USBUILT CARS BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE STRONG YEN IS CAUSING JAPANESE CARS BUILT IN THE US TO BECOME EVEN MORE AMERICAN WHEN JAPANESE AUTO MAKERS BEGAN BUILDING US CARS IN THE 1980S THEY RELIED HEAVILY ON PARTS IMPORTED FROM JAPAN BUT AS THE YEN HAS CLIMBED AGAINST THE DOLLAR MAKING SHIPMENTS FROM JAPAN MORE EXPENSIVE IN TERMS OF THE US CURRENCY AND AS TRADE PRESSURES HAVE MOUNTED THE CAR MAKERS HAVE STEADILY INCREASED THE DOMESTIC CONTENT IN THEIR CARS SEVENTYFIVE PERCENT OF THE PARTS IN THE TOYOTA CAMRY BUILT IN GEORGETOWN KY ARE FROM THE US UP FROM 60 WHEN TOYOTA STARTED BUILDING THE CAR THERE IN 1988 THE HONDA ACCORD BUILT IN MARYSVILLE OHIO HAS 75 DOMESTIC CONTENT THAT WILL RISE ABOVE 80 WHEN THE NEXTGENERATION ACCORD REACHES SHOWROOMS IN THE NEXT MONTH OR SO NEW USBUILT PARTS INCLUDE SUNROOFS PASSENGERSIDE AIR BAGS AND ANTILOCK BRAKE ASSEMBLIES AND BECAUSE OF THE YEN AND OTHER FACTORS 1994 MAY BE THE LAST YEAR IN WHICH HONDA MOTOR CO IMPORTS ANY ACCORDS FROM JAPAN HONDA IS EVEN CONSIDERING BUILDING ONE OF ITS ACURA MODELS IN THE US FOR THE FIRST TIME THE YEN IS KILLING US SAYS RICHARD B THOMAS WHO HEADS THE ACURA DIVISION IN THE US JAPAN'S PAIN HAS BEEN GOOD NEWS FOR THE US PARTS INDUSTRY DOW CHEMICAL CO SAYS SALES TO JAPANESE COMPANIES WILL ACCOUNT FOR ABOUT 20 OF ITS TOTAL AUTOMOTIVEPARTS SALES THIS YEAR UP FROM 5 IN 1988 GENERAL MOTORS CORP EXPECTS COMPONENT SALES TO JAPANESE CAR COMPANIES TO REACH 600 MILLION THIS YEAR UP FROM 400 MILLION LAST YEAR AND VIRTUALLY NIL IN 1986 A GM SPOKESWOMAN SAYS FOR EXAMPLE GM'S FOUNDRY IN DEFIANCE OHIO IS CURRENTLY SUPPLYING 10000 THREELITER ENGINE BLOCKS A MONTH TO NISSAN MOTOR CO FOR USE IN VARIOUS NISSAN VEHICLES AND CHRYSLER CORP LAST YEAR SIGNED A 12 BILLION CONTRACT TO SUPPLY ENGINES AND TRANSMISSIONS FOR MITSUBISHI MOTORS CORP'S ASSEMBLY PLANT IN NORMAL ILL THINGS HAVE CHANGED SHARPLY SINCE THE EARLY 1980S WHEN THE JAPANESE OPENED THEIR FIRST FACTORIES IN THE US IT TOOK MIKE PLUMLEY CHAIRMAN OF PLUMLEY COS FOUR YEARS OF RELENTLESS SALESMANSHIP TO GET HIS FIRST PIECE OF BUSINESS IN 1987 A 350000 CONTRACT TO PROVIDE FUELFILLER TUBES TO NISSAN'S FACTORY IN SMYRNA TENN THAT ORDER HANGS ON MY WALL BECAUSE IT'S THE ONLY ORDER I HAD TO WORK FOUR YEARS TO GET MR PLUMLEY SAYS THIS YEAR THE FAMILYOWNED COMPANY IN PARIS TENN WILL SELL 14 MILLION OF PARTS TO JAPANESE AUTO MAKERS ABOUT 16 OF ITS TOTAL SALES ALTOGETHER JAPANESE AUTO MAKERS' PURCHASES OF US PARTS BOTH HERE AND IN JAPAN STOOD AT 136 BILLION LAST YEAR UP SHARPLY FROM 25 BILLION IN 1985 BUT THE RISE IN PARTS SALES HAS DONE LITTLE TO NARROW THE US TRADE DEFICIT TRADE IN AUTO PARTS ACCOUNTS FOR ABOUT ONEFIFTH OF THE OVERALL US TRADE GAP WITH JAPAN THE PARTS DEFICIT HAS HOVERED BETWEEN 9 BILLION AND 10 BILLION ANNUALLY SINCE 1989 AND IT ISN'T EXPECTED TO CHANGE MUCH SOON DESPITE THE YEN'S SURGE AGAINST THE DOLLAR THE YEN'S RISE HAS BEEN HALTED AT LEAST TEMPORARILY BY A SURPRISE ROUND OF CURRENCYMARKET INTERVENTION LAST THURSDAY BY THE FEDERAL RESERVE BANK OF NEW YORK EVEN SO AT YESTERDAY'S LEVEL OF 10305 YEN TO THE DOLLAR THE JAPANESE CURRENCY HAS RISEN ABOUT 17 THIS YEAR THAT THE YEN'S STRENGTH HAS DONE LITTLE SO FAR TO CURB THE DEFICIT IN PARTS TRADE ILLUSTRATES HOW GOVERNMENT POLICY CAN WORK SLOWLY THE STRONG YEN ONE OF THE KEYSTONES OF US TRADE POLICY WILL REDUCE THE US DEFICIT WITH JAPAN BUT IT WILL TAKE THREE OR FOUR YEARS FOR THE FULL EFFECTS TO BE FELT SAYS ROBERT LAWRENCE A PROFESSOR OF INTERNATIONAL TRADE AT HARVARD UNIVERSITY WHAT'S REALLY STARTLING HE ADDS IS HOW LONG THESE LAGS ARE THE REASON THE DEFICIT HASN'T SHRUNK IS THAT MOST OF THE PARTS THE JAPANESE CAR MAKERS BUY DON'T LEAVE THE COUNTRY THEY END UP IN USASSEMBLED VEHICLES THUS THEY DON'T DIRECTLY AFFECT THE TRADE DEFICIT TOYOTA SPENT 33 BILLION LAST YEAR ON US PARTS FOR ITS US OPERATIONS BUT ONLY 11 BILLION ON US PARTS FOR ITS JAPANESE OPERATIONS IN JANUARY 1992 DURING PRESIDENT BUSH'S TRADE MISSION TO JAPAN THE JAPANESE AUTO MAKERS PLEDGED TO BUY 19 BILLION OF AUTO PARTS ANNUALLY BY THE FISCAL YEAR ENDING MARCH 31 1995 NOW IT APPEARS THAT THEY WILL ACHIEVE THAT GOAL WITHOUT ANY SIGNIFICANT CHANGE IN THE AUTOPARTS DEFICIT SAYS JACK REILLY PRESIDENT OF TENNECO INC'S AUTOMOTIVE OPERATIONS AND ONE OF THE BUSINESSMEN WHO ACCOMPANIED PRESIDENT BUSH IT'S NO SURPRISE TO MYSELF WE STILL HAVE A HIGH DEFICIT MR REILLY SAYS IF WE HADN'T TAKEN THIS AGGRESSIVE ACTION IT WOULD STILL BE MORE OUT OF CONTROL THAN IT IS TODAY MR REILLY AND SOME OTHER PARTS MAKERS WON'T BE SATISFIED EVEN IF JAPAN MEETS ITS 19 BILLION COMMITMENT OSCAR B MARX WHO HEADS FORD MOTOR CO'S COMPONENT OPERATIONS COMPLAINS THAT THE JAPANESE STILL BUY TOO MANY OF THEIR PARTS FROM JAPANESE SUPPLIERS THAT HAVE SET UP OPERATIONS IN THE US AND NOT ENOUGH PARTS FROM US COMPANIES WE'RE NOT ASKING FOR SPECIAL FAVORS MR MARX SAYS BUT I THINK IT'S VERY IMPORTANT THAT PRESSURE BE PUT ON THE JAPANESE TO INCREASE PRODUCTION IN THIS COUNTRY AND TO BUY MORE FROM TRADITIONAL SUPPLIERS OTHERS BELIEVE THAT PRESSURING THE JAPANESE ON TRADE HASN'T REALLY AFFECTED PURCHASES OF US PARTS ROBERT ALBERT HEAD OF DOW CHEMICAL'S AUTOMOTIVE OPERATIONS WHICH HAVE POSTED STEADY INCREASES IN JAPANESE BUSINESS SAYS THAT NONE OF IT WAS BECAUSE OF TRADE PRESSURE INSTEAD MR ALBERT LARGELY CREDITS THE STRONG YEN AND DOW CHEMICAL'S DECISION TO OPEN AN ENGINEERING CENTER IN JAPAN A FEW YEARS AGO THAT ALLOWED DOW CHEMICAL'S ENGINEERS TO WORK DIRECTLY WITH JAPANESE ENGINEERS TO DESIGN THE PRODUCT TO THEIR SPECIFICATIONS COMPANIES HAVE TO LEARN HOW TO DO BUSINESS WITH THE JAPANESE MR ALBERT ADDS 9308240107 930824 TECHNOLOGY MACNEAL PLANS PURCHASE OF ARIES LOS ANGELES MACNEALSCHWENDLER CORP A MAKER OF SOFTWARE USED IN COMPUTER ENGINEERING SAID IT SIGNED AN AGREEMENT TO BUY PRIVATELY HELD ARIES TECHNOLOGY INC LOWELL MASS FOR 20 MILLION IN MACNEAL STOCK MACNEAL SAID ARIES WILL PROVIDE EXPERTISE IN THE COMPUTERAIDED MODELING OF SOLID MATERIALS AND OTHER SOFTWARE TOOLS THAT WILL ENHANCE MACNEAL'S NASTRAN PRODUCT LINE 9308240106 930824 PROPERTY SWITCH REALESTATE EMPIRES OF PRIVATE DEVELOPERS FACE A HARSH NEW ERA DEEP IN DEBT MANY OF THEM MUST TRY GOING PUBLIC OR YIELD ROLE TO LENDERS LARGE INSTITUTIONS TAKE OVER BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL SAMUEL TAMPOSI JR RECALLS TOURING CONSTRUCTION SITES IN NASHUA NH AT AGE FIVE GAZING OUT OF A STATION WAGON AT THE FOUNDATIONS OF THE FAMILY EMPIRE HIS FATHER WAS LAYING SAMUEL SR A ONETIME VACUUMCLEANER SALESMAN WENT ON TO AMASS A SMALL FORTUNE BUILDING FACTORIES OFFICES APARTMENTS AND HOTELS NOW MORE THAN THREE DECADES LATER SAMUEL JR AND HIS FIVE SIBLINGS HAVE BEEN STRIPPED OF ALL THE PROPERTY THEIR FATHER GAVE THEM WHEN THE NEW HAMPSHIRE ECONOMY COLLAPSED BANKS AND INSURANCE COMPANIES BEGAN FORECLOSING ON THEIR BUILDINGS AND ALL SIX SECONDGENERATION DEVELOPERS FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION IN 1991 THEY RECENTLY EMERGED FROM BANKRUPTCY WITH SAMUEL JR RELEGATED TO THE DIMINISHED ROLE OF MANAGING AND SELLING MORE THAN 100 FAMILY PROPERTIES FOR CREDITORS OUTSIDE OF OUR PERSONAL RESIDENCES ALL OF OUR ASSETS HAVE BEEN PUT INTO A CREDITORS' TRUST HE SAYS EVEN IF NOT IN BANKRUPTCY THE ENTREPRENEURS WHO HAVE LONG DOMINATED US COMMERCIAL REAL ESTATE ARE FAST REALIZING THEY HAVE SEEN THE END OF AN ERA AS THE DUST SETTLES ON THE DISASTROUS OVERBUILDING IN THE 1980S THE BANKS AND INSURANCE COMPANIES THAT ONCE PROVIDED 100 LOANS TO SWASHBUCKLING DEVELOPERS ARE REINING THEM IN AS NEVER BEFORE IN EXTENDING OR RESTRUCTURING EXISTING LOANS LENDERS ARE DEMANDING MORE CONTROL AND THE FEW LENDERS WILLING TO GRANT NEW COMMERCIAL REALESTATE LOANS NOW WON'T FINANCE MORE THAN 75 OF A PROJECT'S COST IN REACTION A GROWING NUMBER OF TOP DEVELOPERS FIND THE LENDING CLIMATE SO OPPRESSIVE THAT THEY ARE TRYING PUBLIC OWNERSHIP ONLY TO FIND THAT THAT TOO CAN BE CONSTRICTING TOUGHER FINANCING STANDARDS COUPLED WITH THE REQUIREMENTS OF THE PUBLIC MARKETS WON'T LEAVE MOST DEVELOPERS WITH THE RESOURCES TO REPEAT THE ORGY OF BUILDING THAT HAS SO DAMAGED LENDERS WE WILL SEE A MUCH MORE RATIONAL FLOW OF CAPITAL INTO THE REALESTATE MARKET AND THE SUPPLY OF BUILDINGS WILL BE MUCH MORE IN LINE WITH DEMAND SAYS WILLIAM SANDERS A FORMER INSTITUTIONAL REALESTATE ADVISER WHO NOW RUNS A PUBLICLY TRADED APARTMENT COMPANY IN SANTA FE NM ALTHOUGH THAT MAY BE GOOD FOR THE NATION'S FINANCIAL SYSTEM IT IS AN UNSETTLING CHANGE FOR MANY DEVELOPERS DURING THEIR GLORY YEARS THEY QUIETLY BUILT THEIR FORTUNES WITH LITTLE OUTSIDE INTERFERENCE EACH CITY SPAWNED ITS OWN OFFICE TYCOONS THE FISHERS IN NEW YORK THE CARRS IN WASHINGTON AND THE SHORENSTEINS IN SAN FRANCISCO DOMINATING SHOPPINGMALL DEVELOPMENT WERE A FEW FAMILIES SUCH AS THE TAUBMANS OF SOUTHLAND MICH THE BUXBAUMS OF DES MOINES IOWA AND THE DEBARTOLOS OF BOARDMAN OHIO DEVELOPERS SUCH AS PETER BEDFORD OF LAFAYETTE CALIF BUILT LARGE PORTFOLIOS OF INDUSTRIAL PROPERTIES THESE PEOPLE HAVE RUN PRIVATE COMPANIES FOR SO LONG THEY'RE USED TO HAVING THEIR OWN PRIVATE FIEFDOMS SAYS MICHAEL OLIVER WHO MANAGES A 120 MILLION PORTFOLIO OF REALESTATE SECURITIES FOR CHICAGOBASED PRA SECURITIES ADVISORS THESE GUYS WERE KINGS AND THEIR WIVES WERE QUEENS AND THE REST OF THE WORLD WERE SERFS DURING THE 1980S ALONE HALF OF ALL THE OFFICE SPACE NOW STANDING WAS BUILT LARGELY BECAUSE OF THE ACTIVITIES OF REALESTATE DEVELOPERS WITH FINANCING FROM BANKS THRIFTS AND INSURERS DEVELOPERS WHO DIDN'T OVERLEVERAGE THEIR EMPIRES AND STAYED CURRENT ON THEIR SHARE OF THE ROUGHLY 718 BILLION OF COMMERCIALREALESTATE DEBT NOW OUTSTANDING AREN'T FACING PRESSURE TO YIELD CONTROL TO ANYONE IN THE MID1980S FOR EXAMPLE THE SECOND GENERATION OF THE FISHER FAMILY REFINANCED MUCH OF ITS LARGE PORTFOLIO OF MANHATTAN OFFICE BUILDINGS SOLD OFF ITS UNDEVELOPED LAND AND USED THE CASH TO DIVERSIFY OUT OF REAL ESTATE FEW DEVELOPERS HOWEVER WERE SO ASTUTE OVER THE YEARS MR BEDFORD FOR EXAMPLE GOT WHAT AMOUNTED TO A BLANK CHECK FROM KEMPER CORP THE LONG GROVE ILL INSURER INVESTED NEARLY 1 BILLION IN HIS PROJECTS GETTING HALF OWNERSHIP IN INDUSTRIAL PROPERTIES AND SUBURBAN OFFICES IN NORTHERN CALIFORNIA RESIDENTIAL PROJECTS AND RAW LAND IN SOUTHERN CALIFORNIA AND A SLEW OF PROPERTIES IN OTHER STATES HIS PROJECTS ACCOUNTED FOR 40 OF KEMPER'S REALESTATE PORTFOLIO A YEAR AGO AFTER MANY OF THE INVESTMENTS HAD CLEARLY FALTERED KEMPER ASKED MR BEDFORD TO CEDE CONTROL HE AGREED TO SELL KEMPER HIS MANAGEMENT COMPANY AND MORE THAN 100 OF HIS EMPLOYEES BEGAN WORKING FOR THE INSURER HE WAS LEFT WITH A HANDFUL TO RUN A SMALL REALESTATE INVESTMENT TRUST HE ALSO RETAINS 50 EQUITY IN THE PROJECTS BUT KEMPER NOW HAS PRIORITY ON ANY INVESTMENT RETURNS SINCE WE HAD PUT UP THE MONEY AND WE HAD THE DOWNSIDE RISK WE WANTED MORE DAYTODAY INVOLVEMENT IN PLANNING AND CONTROLLING THE COMPANY EXPLAINS JACK NEAL A KEMPER EXECUTIVE VICE PRESIDENT WHO ORCHESTRATED THE SWITCH IN CONTROL MR BEDFORD HAS TOLD ASSOCIATES THAT HE EXPECTS TO BE DIVORCED FROM KEMPER BY YEAR END PERHAPS THROUGH A DEBTFOREQUITY SWAP I'D LIKE TO GET OUT OF THE REST OF THE PROPERTIES HE SAYS BOTH HE AND MR NEAL DECLINE TO DISCUSS NEGOTIATIONS OVER HIS REMAINING KEMPER DEBT THERE'S NO QUESTION THAT THE ROLE OF THE ENTREPRENEUR IS CHANGING MR NEAL SAYS I THINK THE INSTITUTIONAL PLAYERS ARE GOING TO PLAY A BIGGER AND BIGGER ROLE AND HAVE A BIGGER SAY IN WHAT'S DONE LIKE THE TAMPOSIS OF NEW HAMPSHIRE MANY DEVELOPERS HAVE ALREADY SURRENDERED THEIR PROPERTIES TO LENDERS WHICH HAVE IN TURN BEGUN TO SELL THEM OFF TO BOTTOMFISHERS BUT DEVELOPERS WHO HOPE TO REEMERGE IN THIS ARENA WILL BE EXPECTED TO KICK EQUITY INTO EACH DEAL THAT REQUIREMENT COULD LEAVE THEM FAR BEHIND THE WELLHEELED INSTITUTIONAL INVESTORS A SUBSTANTIAL MAJORITY OF THE NATION'S COMMERCIAL PROPERTY STILL REMAINS IN THE HANDS OF PRIVATE DEVELOPERS AND NO ONE EXPECTS REALESTATE TYCOONS TO DISAPPEAR BUT THERE IS CONSIDERABLE SPECULATION ABOUT HOW MUCH ENTREPRENEURSHIP THE LENDERS WILL SQUEEZE OUT OF THE BUSINESS BETWEEN 1990 AND THE END OF THIS YEAR LENDERS WILL HAVE FORECLOSED ON ABOUT 15 OF THE LOANS OUTSTANDING TO DEVELOPERS ACCORDING TO REALESTATE RESEARCH AT SALOMON BROTHERS INC IN ADDITION MANY DEVELOPERS HAVE HUNG ONTO THEIR BUILDINGS ONLY BY SURRENDERING THEIR AUTONOMY AND FUNNELING RENTAL INCOME DIRECTLY TO LENDERS THEY HAVE BECOME IN ESSENCE LITTLE MORE THAN THE MANAGERS OF THEIR OWN BUILDINGS WITH LENDERS MAKING THE MAJOR DECISIONS BEHIND CLOSED DOORS IN A VERY CONFIDENTIAL WAY LENDER/BORROWER DEALS ARE BEING NEGOTIATED THAT EFFECTIVELY PUT THE BORROWER INTO AN INCENTIVEMANAGEMENT ROLE SAYS H RENNYSON MERRITT III OF ALDRICH EASTMAN & WALTCH A BOSTONBASED REALESTATE ADVISORY FIRM A LENDER MIGHT AGREE TO A LOWER INTEREST RATE ON A DEVELOPER'S DEBT HE EXPLAINS IF THE DEVELOPER SURRENDERS A LARGER SLICE OF POTENTIAL PROFITS IN THE EVENT THE PROJECT EVER MAKES MONEY THE DEVELOPER DOESN'T FORFEIT OWNERSHIP BUT GIVES UP THE RIGHT TO THE PROJECT'S CASH FLOW IN EXCESS OF AGREEDUPON MANAGEMENT FEES DEVELOPERS AREN'T DEVELOPERS ANYMORE MR MERRITT SAYS THEY'RE PROPERTY MANAGERS EVEN THOUGH THEY MAY TECHNICALLY HAVE EQUITY IN THE BUILDINGS NEARLY EVERY DEVELOPER BACKED INTO A CORNER BY HIS LENDERS HAS THOUGHT ABOUT SELLING SHARES IN HIS PROPERTY TO THE PUBLIC INVESTMENT BANKERS SAY MONEY RAISED IN A PUBLIC OFFERING CAN BE USED TO PAY DOWN DEBT AND GIVE DEVELOPERS THE CASH TO BUY PROPERTIES AT STEEP DISCOUNTS FROM OTHER STRUGGLING OWNERS SINCE LAST NOVEMBER MORE THAN 17 PRIVATE DEVELOPERS HAVE CONVERTED THEIR COMPANIES INTO REALESTATE INVESTMENT TRUSTS RAISING MORE THAN 3 BILLION IN PUBLIC OFFERINGS THEY INCLUDE MALLDEVELOPER A ALFRED TAUBMAN OFFICEDEVELOPER OLIVER CARR AND SHOPPINGCENTERDEVELOPERS MARTIN BUXBAUM OF DES MOINES AND BERT WOLSTEIN OF MORELAND HILLS OHIO ANOTHER 10 OR SO ARE REGISTERED TO RAISE MORE THAN 2 BILLION AND SUCH PROMINENT DEVELOPERS AS MALL KING EDWARD DEBARTOLO SR ARE SAID TO BE LINING UP TO FOLLOW SUIT MR DEBARTOLO'S OFFICE DIDN'T RETURN PHONE CALLS BUT DEVELOPERS WHO HAD VIEWED PUBLIC OFFERINGS AS A WAY TO AVOID FORFEITING CONTROL HAVE BEEN JOLTED BY THE NEED TO LET THE PUBLIC SCRUTINIZE THEIR BALANCE SHEETS AND BY THE CHECKS ON THEIR POWER WHEN NORMAN KRANSDORF A CONCHOHOCKEN PA SHOPPINGCENTER DEVELOPER WAS PREPARING TO GO PUBLIC LAST FALL HE PROPOSED THAT HIS WIFE LAWYER AND INVESTMENT BANKER JOIN HIM ON A FIVEMEMBER BOARD OF DIRECTORS TOLD BY AT LEAST ONE MONEY MANAGER THAT HE WOULD NEVER BUY STOCK IN SUCH A COMPANY MR KRANSDORF RELUCTANTLY WITHDREW THE THREE NAMES ALTHOUGH HE SAYS HE STILL WONDERS WHETHER HE SHOULD HAVE STOOD HIS GROUND MARTIN COHEN OF COHEN & STEERS CAPITAL MANAGEMENT IN NEW YORK AN INFLUENTIAL REIT INVESTOR SAYS MANY DEVELOPERS HAVE DIFFICULTY WITH THE VERY CONCEPT OF WORKING FOR SHAREHOLDERS WHEN YOU TALK TO THEM THEY NEVER SAY WE HE EXPLAINS THEY ALWAYS SAY I I BOUGHT THIS I BUILT THAT MR KRANSDORF SAYS HE HAS BEEN WARNING SCORES OF REIT WANNABES TO PREPARE THEMSELVES FOR OPERATING IN A GOLDFISH BOWL HAVING THE WHOLE WORLD KNOW HOW MUCH YOU MAKE AND HAVING THE REIT MAFIA YELL AT YOU REFERRING TO THE HANDFUL OF MONEY MANAGERS SUCH AS MR COHEN WHO DOMINATE INSTITUTIONAL BUYING PORTFOLIO MANAGERS AND ANALYSTS CITE THE CASE OF SIDNEY LASSEN A KENNAR LA APARTMENT AND SHOPPINGCENTER DEVELOPER WHO TOOK SIZELER PROPERTY INVESTORS PUBLIC IN 1987 IN 1991 THE COMPANY BOUGHT A SHOPPING CENTER FOR NEARLY 1 MILLION FROM A SEPARATE LASSENFAMILY COMPANY MR LASSEN POINTS OUT THAT HE HAD THE APPROVAL OF THE PUBLIC COMPANY'S DIRECTORS BUT SHAREHOLDERS AND ANALYSTS COMPLAINED ABOUT A CONFLICT OF INTEREST LAST YEAR MR LASSEN AGAIN IRKED THE INVESTMENT COMMUNITY BY BUYING A CORPORATE JET HE SAYS THE PLANE IS NEEDED A LOT OF DEVELOPERS WALK IN AND EXPECT INVESTORS TO ROLL OVER AND PLAY DEAD SAYS CYDNEY DONNELL MANAGER OF REALESTATE SECURITIES INVESTMENTS FOR EUROPEAN INVESTORS A NEW YORK MONEY MANAGER DEVELOPERS SUCH AS MR TAUBMAN WHO GOT A 600 MILLION LOAN FROM THE PENSION FUNDS OF GENERAL MOTORS CORP AND AMERICAN TELEPHONE & TELEGRAPH CO IN 1985 HAVE BECOME ACCUSTOMED TO REPORTING TO OUTSIDE INVESTORS BUT BEING PEPPERED WITH QUESTIONS FROM POTENTIAL SHAREHOLDERS IS ANOTHER MATTER DURING A ROAD SHOW FOR A PUBLIC OFFERING THE HARDEST PART WAS SMILING AND ANSWERING THE QUESTIONS WHEN I WAS USED TO SAYING NONE OF YOUR GODDAMN BUSINESS' TAUBMAN CO VICE CHAIRMAN ROBERT LARSON TOLD DEVELOPERS AT A RECENT CONFERENCE EVEN WITH THE CURRENT SPATE OF PUBLIC OFFERINGS THE TOTAL CAPITALIZATION OF THE REIT MARKET IS ONLY ABOUT 20 BILLION SLIGHTLY MORE THAN 1 OF THE ESTIMATED VALUE OF ALL US COMMERCIAL REAL ESTATE AND FEW EXPERTS EXPECT THAT MARKET TO GROW TO MUCH MORE THAN 50 BILLION WITHIN FIVE YEARS THOUGH SOME SAY IT EVENTUALLY COULD REACH 100 BILLION THERE ARE PROBABLY FEWER THAN 200 DEVELOPERS WITH PORTFOLIOS WORTH MORE THAN 100 MILLION THE AMOUNT REQUIRED TO ATTRACT INSTITUTIONAL BUYERS BUT SOME PROMINENT DEVELOPERS HAVE EMBRACED THE IDEA OF USING THEIR NEW PUBLIC COMPANIES TO BUILD MARKET SHARE QUICKLY SNAPPING UP PROPERTIES FROM PRIVATE DEVELOPERS LACKING PUBLIC FINANCING SAM ZELL A CHICAGO REALESTATE INVESTOR WHO HAS FORMED TWO PUBLIC REALESTATE COMPANIES TOLD DEVELOPERS RECENTLY THAT THE REALESTATE INDUSTRY IS GOING TO BE DRAMATICALLY SMALLER IN THE FUTURE HE ADDED THE GAME IS REALLY OVER WE HAVE TO LEARN TO PROTECT OUR FINANCIAL SOURCES RATHER THAN TO TAKE ADVANTAGE OF THEM 9308240105 930824 WORLD MARKETS TOKYO STOCKS DECLINE FOR FIFTH STRAIGHT SESSION PROFITTAKING DRAGS DOWN EUROPEAN MARKETS A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS REGISTERED THEIR FIFTH STRAIGHT DECLINE MONDAY IN THIN TRADING AS A MAJOR POLICY SPEECH BY JAPAN'S PRIME MINISTER FAILED TO SHAKE UP THE MARKET LONDON AND FRANKFURT MARKETS SANK IN A WAVE OF PROFITTAKING THAT SWEPT EUROPE IN QUIET DEALINGS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11123 DOWN 031 REFLECTING DECREASES IN AMERICAN AND EUROPEAN MARKETS AND A RISE IN ASIA/PACIFIC MARKETS TOY STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11899 UP 248 OR 21 WITH NINTENDO OF JAPAN POSTING A 27 GAIN IN ITS LOCAL CURRENCY TOBACCO STOCKS TRAILED AT 7727 DOWN 104 OR 13 WITH ROTHMANS INDUSTRIES OF SINGAPORE SLIDING 27 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 8021 POINTS FRIDAY TUMBLED 19312 TO 2041414 BRINGING ITS COMBINED LOSS DURING THE PAST FIVE SESSIONS TO 48735 POINTS ON TUESDAY IN TOKYO THE NIKKEI EASED 2230 POINTS TO CLOSE THE MORNING SESSION AT 2039184 Y'S FIRSTSECTION VOLUME WAS ESTIMATED AT 140 MILLION SHARES DOWN FROM 2286 MILLION SHARES FRIDAY LOSING ISSUES OUTNUMBERED GAINING ISSUES 742217 THE TOKYO STOCK PRICE INDEX OR TOPIX OF FIRSTSECTION ISSUES WHICH FELL 557 POINTS FRIDAY LOST 1501 TO 164418 A CLOSELY WATCHED POLICY ADDRESS BY PRIME MINISTER MORIHIRO HOSOKAWA DID NOTHING TO WRENCH THE MARKET FROM ITS LASSITUDE MR HOSOKAWA WHOSE SPEECH FOCUSED ON POLITICAL REFORM OFFERED ONLY A VAGUE SET OF MEASURES TO SPEED AN ECONOMIC RECOVERY HE RULED OUT DEFICIT BONDS AND REITERATED THAT THE BENEFITS OF THE STRONG YEN MUST BE PASSED ON TO CONSUMERS THE MARKET WAS ALSO UNDER PRESSURE FROM THE DECLINE IN FUTURES CONTRACT PRICES IN LINE WITH THE FALL IN NIKKEI FUTURES TRADED IN CHICAGO LATE FRIDAY ARBITRAGE SELLING KNOCKED STOCK PRICES LOWER BANK SHARES WERE AMONG THE HARDESTHIT AS INVESTORS TOOK PROFITS ON THE SECTOR'S RECENT SHARP ADVANCE WHICH WAS FUELED BY EXPECTATIONS THE BANK OF JAPAN WOULD CUT ITS DISCOUNT RATE SOON A LACK OF FRESH INCENTIVES LEFT TRADERS PAYING MORE ATTENTION TO THE FINALS OF A POPULAR BASEBALL TOURNAMENT THAN TO THE MARKET IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100 INDEX DROPPED 156 POINTS TO 3042 THE FT 30 INDEX FELL 107 TO 23734 VOLUME WAS 5471 MILLION SHARES COMPARED WITH 6334 MILLION SHARES IN THE PREVIOUS SESSION LONDON'S THIRD STRAIGHT SESSION OF DECLINES SIGNALED THAT THE MARKET MAY BE ENTERING A PERIOD OF CORRECTION THE FTSE 100 HAS FALLEN 316 POINTS IN THE PAST THREE SESSIONS AFTER RISING 645 POINTS IN THE BEGINNING OF LAST WEEK AND A TOTAL 2435 POINTS BETWEEN JULY 21 AND FRIDAY HOWEVER THE SLIDE MAY REPRESENT MORE THAN JUST A CORRECTION ANTICIPATED CUTS IN INTEREST RATES ALREADY HAVE BEEN PRICED INTO SHARES AND EUROPEAN MARKETS NOW APPEAR DISAPPOINTED THAT RATES AREN'T COMING DOWN AS EXPECTED BUT THE MARKET HAS ALSO DRAWN SUPPORT FROM LOW INFLATION AND HIGHER LIQUIDITY IN THE ABSENCE OF RIGHTS ISSUES MEANWHILE MONDAY'S CORPORATE NEWS WAS MOSTLY BEARISH IN FRANKFURT PRICES DROPPED SHARPLY IN A CONSOLIDATION OF THIS MONTH'S STRONG GAINS THE DAX 30STOCK INDEX OF BLUECHIPS WHICH LOST 1630 POINTS FRIDAY FELL 3441 OR 18 TO 188827 THE CONSOLIDATION WAS EXPECTED AND EVEN WELCOMED AFTER PRICES SOARED ALMOST 8 SINCE THE BEGINNING OF THE MONTH THE DAX INDEX BROKE THROUGH 1900 ON AUG 12 AND REACHED A THREEYEAR HIGH OF 193898 THURSDAY PROFITTAKING SWEPT OTHER EUROPEAN BOURSES AS WELL DRAGGING STOCK PRICES LOWER IN PARIS STOCKS SLIPPED IN VERY THIN QUIET TRADING AS PLAYERS SQUARED POSITIONS AHEAD OF THE LAST DAY OF THE AUGUST TRADING ACCOUNT THE BANK OF FRANCE'S DECISION TO CLOSE ITS 24HOUR LENDING FACILITY WHICH WAS INTRODUCED DURING THE LATEST CRISIS IN THE EUROPEAN MONETARY SYSTEM LEFT THE MARKET CONFUSED ABOUT WHETHER THE ACTION SIGNALED A RETURN TO NORMAL FOR THE CENTRAL BANK'S MARKET ACTIVITIES IN AMSTERDAM SHARES SLID BUT SEVERAL BLUECHIPS FINISHED HIGHER IN SOME LATE BUYING IN MILAN STOCKS EDGED UP THOUGH PROFITTAKING WIPED OUT EARLY GAINS IN SLACK TRADING MADRID EQUITIES EASED THE BOURSE WAS QUIET AS TRADERS WAITED TO SEE WHETHER THE BANK OF SPAIN WOULD LOWER INTEREST RATES AT ITS SECURITIES REPURCHASE TENDER TODAY IN STOCKHOLM PRICES FELL 13 ON PROFITTAKING IN MANY BLUE CHIP ISSUES ASIAN AND PACIFIC MARKETS WERE MIXED IN SYDNEY PRICES STRENGTHENED ON SOLID TRADING IN BROKEN HILL PROPRIETARY AS WELL AS INTEREST ACROSS THE BOARD FROM EUROPEAN AND US INVESTORS EXPECTATIONS THAT COMPANIES SUCH AS NEWS CORP WILL REPORT STRONG RESULTS THIS WEEK SUPPORTED PRICES IN SINGAPORE SHARES EASED AS AN EARLY BUYING SPURT WAS KNOCKED DOWN BY PROFITTAKING AFTER THE SECOND HOUR IN HONG KONG STOCKS PLUNGED 2 GIVING BACK MOST OF LAST WEEK'S GAINS THE SLIDE BEGAN ON FRIDAY IN THE WAKE OF A DISAPPOINTING HALFYEAR EARNINGS REPORT BY HANG SENG BANK THAT COULD FORESHADOW WEAKNESS AT ITS PARENT COMPANY HSBC HOLDINGS IN TAIPEI STOCKS SLIPPED IN THIN TRADING MONDAY THE FIFTH CONSECUTIVE DECLINING SESSION ON CONCERNS ABOUT HOW THE RULING NATIONALIST PARTY'S CENTRAL COMMITTEE WAS TAKING SHAPE IN SEOUL EQUITIES SANK 1 AMID CAUTION TRIGGERED BY LAST WEEK'S STEEP GAINS IN WELLINGTON PRICES ADVANCED IN BUSY TRADING TO THEIR HIGHEST LEVEL IN MORE THAN FOUR YEARS STOCKS HAVE BEEN RISING IN RECENT WEEKS IN LINE WITH A GRADUAL DECLINE IN LOCAL DEBTMARKET YIELDS AND ON THE BACK OF SOME BETTERTHANEXPECTED CORPORATE EARNINGS REPORTS AMONG CORPORATE DEVELOPMENTS IN MILAN FERRUZZI FINANZIARIA JUMPED 2075 LIRE OR 89 TO 25475 LIRE 16 CENTS A SHAREHOLDERS GROUP ASKED THE STOCK MARKET WATCHDOG AGENCY CONSOB TO SUSPEND TRADING IN SHARES OF THE ITALIAN CONGLOMERATE AND ITS MONTEDISON UNIT UNTIL A RESTRUCTURING PLAN FOR THE COMPANIES HAS BEEN PRESENTED THE PLAN BEING PUT TOGETHER BY A GROUP OF CREDITOR BANKS HEADED BY MEDIOBANCA IS EXPECTED TO BE READY MIDSEPTEMBER 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 9308240104 930824 POLITICS & POLICY LOUISIANAPACIFIC TARGET OF ENVIRONMENTALISTS FINDS ITSELF ALLIED WITH THEM ON US PROPOSAL BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN LOUISIANAPACIFIC CORP PAID AN 111 MILLION FINE THREE MONTHS AGO IN A POLLUTION CASE MANY ENVIRONMENTALISTS COMPLAINED THAT THE PENALTY WAS TOO SMALL AND THAT CRIMINAL CHARGES SHOULD HAVE BEEN FILED AGAINST THE WOOD PRODUCTS COMPANY'S EXECUTIVES NOW IN ONE OF THOSE TWISTS THAT SHOW HOW QUICKLY SHIFTING POLITICAL CIRCUMSTANCES CAN MAKE STRANGE BEDFELLOWS MANY OF THOSE ENVIRONMENTALISTS FIND THEMSELVES ALLIED WITH THE COMPANY IN A LOBBYING WAR OVER A PROPOSED TOUGHENING OF ENVIRONMENTAL POLICY ONE THAT WOULD BENEFIT LOUISIANAPACIFIC AT ISSUE IS WHETHER THE FEDERAL GOVERNMENT SHOULD REQUIRE PULP AND PAPER COMPANIES THAT DO BUSINESS WITH IT TO EMBRACE STRICTER ENVIRONMENTAL STANDARDS A DRAFT EXECUTIVE ORDER BEING CONSIDERED BY THE CLINTON ADMINISTRATION INCLUDES A PROVISION THAT CALLS ON FEDERAL AGENCIES TO ESTABLISH GOALS FOR THE PURCHASE OF TOTALLY CHLORINEFREE PAPER BY 1995 THE ADMINISTRATION PROBABLY WILL ADOPT THE POLICY IN SOME FORM WITHIN A FEW WEEKS AMONG THOSE LOBBYING FOR THE NEW POLICY IS LOUISIANAPACIFIC THE COMPANY ENVIRONMENTALISTS LOVE TO HATE LOUISIANAPACIFIC STANDS TO BENEFIT BECAUSE THANKS TO A CONSENT DECREE IT SIGNED TO SETTLE AN ENVIRONMENTAL PROTECTION AGENCY LAWSUIT OVER POLLUTION AT ITS SAMOA CALIF PLANT IT IS BELIEVED TO BE THE ONLY US COMPANY CURRENTLY MAKING TOTALLY CHLORINEFREE BLEACHED KRAFT SOFTWOOD PULP A KEY COMPONENT IN MOST PAPER BARRY LACTER A SPOKESMAN FOR LOUISIANAPACIFIC SAYS THAT WE CERTAINLY DIDN'T HAVE ANYTHING TO DO WITH GETTING THE PROVISION ON TOTALLY CHLORINEFREE PAPER INTO THE EXECUTIVE ORDER BUT WE WERE PLEASANTLY SURPRISED TO SEE IT THERE AND WE WOULD LOVE TO SEE IT STAY AS STRONG AS IT IS NOW SEVERAL COMPANY OFFICIALS DISCUSSED THE ISSUE WITH WHITE HOUSE AND EPA STAFFERS IN WASHINGTON THIS MONTH NOW THEY'RE KISSING COUSINS WITH GREENPEACE SAYS GARY BIVINGS A WASHINGTON LOBBYIST WHO REPRESENTS GEORGIAPACIFIC CORP GEORGIAPACIFIC ALONG WITH SUCH OTHER COMPANIES AS INTERNATIONAL PAPER CO IS TRYING TO WATER DOWN THE PROPOSED ACTION THEY ARE ASSISTED BY KEY DEMOCRATIC ALLIES INCLUDING SENATE MAJORITY LEADER GEORGE MITCHELL WHO IS CONCERNED ABOUT THE INITIATIVE'S IMPACT ON THE PULP AND PAPER INDUSTRY IN HIS HOME STATE OF MAINE AND BETSEY WRIGHT A FORMER CLINTON CAMPAIGN AIDE AND GUBERNATORIAL CHIEF OF STAFF WHO NOW WORKS FOR A WASHINGTON LOBBYING FIRM FINDING THEMSELVES ON THE SAME SIDE AS LOUISIANAPACIFIC LEAVES A FEW ENVIRONMENTALISTS FEELING QUEASY I'M NOT EXACTLY COMFORTABLE WITH ANY POLICY THAT WOULD ELEVATE LOUISIANAPACIFIC'S CURRENT MARKET SHARE SAYS JONATHAN TURLEY A LAW PROFESSOR AT GEORGE WASHINGTON UNIVERSITY WHO ADVOCATES MORE AGGRESSIVE CRIMINAL PROSECUTION OF ENVIRONMENTAL VIOLATIONS IN GENERAL AND AGAINST LOUISIANAPACIFIC IN PARTICULAR WHEN IT COMES TO ENVIRONMENTAL INFRACTIONS HE SAYS LOUISIANAPACIFIC CAN ONLY BE DESCRIBED AS AN OVERACHIEVER OTHERS IN THE ENVIRONMENTAL MOVEMENT CLAIM LITTLE AFFECTION FOR LOUISIANAPACIFIC BUT SAY THEIR CHIEF CONCERN IS THAT THE MARKET BE REDIRECTED TOWARD ENVIRONMENTALLY SOUND MANUFACTURING PRACTICES WE DON'T ENDORSE LOUISIANAPACIFIC AT ALL SAYS MARK FLOEGEL A CAMPAIGNER WITH GREENPEACE'S INTERNATIONAL CHLORINE CAMPAIGN WE ENDORSE THE USE OF A PROCESS ENVIRONMENTAL GROUPS SIDING WITH LOUISIANAPACIFIC INCLUDING THE NATURAL RESOURCES DEFENSE COUNCIL AND THE NATIONAL WILDLIFE FEDERATION ASSERT THAT THE ALTERNATIVE IS TO SIDE WITH PAPER COMPANIES THAT HAVE ENGAGED IN SOME HEAVYHANDED LOBBYING TO WEAKEN THE GREEN INITIATIVE FOR EXAMPLE FORMER CLINTON AIDE WRIGHT WHO NOW WORKS FOR THE LOBBYING FIRM OF WEXLER REYNOLDS FULLER HARRISON & SCHULE SAYS SHE CALLED BILL BURTON A TOP AIDE TO WHITE HOUSE CHIEF OF STAFF THOMAS MACK MCLARTY TO ENLIST MR BURTON'S HELP TO SET UP A WHITE HOUSE MEETING BETWEEN THE AMERICAN FOREST AND PAPER ASSOCIATION WHICH OPPOSES THE EXECUTIVE ORDER AND WHITE HOUSE ENVIRONMENTAL CHIEF KATHLEEN MCGINTY AND FORMER EPA ADMINISTRATOR LEE THOMAS NOW SENIOR VICE PRESIDENT FOR ENVIRONMENT AND GOVERNMENT AFFAIRS AT GEORGIAPACIFIC HAS LOBBIED AGAINST THE EXECUTIVE ORDER AT HIS FORMER AGENCY ENVIRONMENTALISTS HAVE LONG BEEN CONCERNED ABOUT THE USE OF CHLORINE TO BLEACH PULP USED IN MAKING PAPER BECAUSE IT RESULTS IN WASTE WATER EMISSIONS OF DIOXIN AND OTHER TOXIC CHEMICALS THIS WASTE WATER CAN'T BE RECYCLED THROUGH THE PLANT BECAUSE THE CHLORINATED WASTE PRODUCTS ARE TOO CORROSIVE PAPER COMPANIES ACKNOWLEDGE THAT CHLORINERELATED EMISSIONS ARE A PROBLEM BUT GENERALLY FAVOR ADDRESSING IT WITH A PROCESS CALLED ELEMENTALLY CHLORINE FREE THAT REDUCES BUT DOES NOT ELIMINATE USE OF CHLORINE ENVIRONMENTAL GROUPS COUNTER THAT ELEMENTALLY CHLORINE FREE IS INFERIOR TO A TOTALLY CHLORINEFREE PROCESS THAT SUBSTITUTES A MORE ENVIRONMENTALLY BENIGN BLEACH SUCH AS HYDROGEN PEROXIDE FOR CHLORINE INDEED THEY SAY SEVERAL EUROPEAN NATIONS ALREADY ARE WELL AHEAD OF THE US IN DEVELOPING TOTALLY CHLORINEFREE TECHNOLOGY THIS APPROACH IS THE ONE FAVORED IN THE DRAFT EXECUTIVE ORDER WHICH CALLS ON FEDERAL AGENCIES TO SET GOALS FOR PURCHASE OF SUCH PAPER BY 1995 IF PAPER COMPANIES DON'T WANT TO MAKE CHLORINEFREE PAPER ITS ADVOCATES SAY THE PROPOSED ADMINISTRATION ACTION WON'T MAKE THEM THE FEDERAL GOVERNMENT BUYS ONLY 1 TO 2 OF ALL PAPER MANUFACTURED IN THE US AND THE LANGUAGE IN THE DRAFT EXECUTIVE ORDER DOESN'T EVEN SPECIFY HOW MUCH OF THAT WILL BE CHLORINEFREE BUT PAPER COMPANIES COUNTER THAT US GOVERNMENT STANDARDS EVEN WHEN VAGUELY DEFINED AS GOALS ARE QUICKLY ADOPTED BY THE PRIVATE SECTOR AND AS ALMOST NO US COMPANIES ARE EQUIPPED RIGHT NOW TO MAKE TOTALLY CHLORINEFREE PULP ANY SIGNIFICANT PURCHASE INCREASE WILL HAVE TO BE SATISFIED BY IMPORTED PAPER SAYS RED CAVANEY PRESIDENT OF THE AMERICAN FOREST AND PAPER ASSOCIATION THE ONE EXCEPTION IS LOUISIANAPACIFIC ITS SAMOA PLANT IS ALREADY MAKING SOME CHLORINEFREE PULP WHICH IT SELLS TO A FEW SMALL PAPER MANUFACTURERS IN THE US THE PLANT IS ALSO CONTINUING TO MAKE PULP BLEACHED WITH CHLORINE BUT LOUISIANAPACIFIC PLEDGED AS PART OF LAST YEAR'S CONSENT DECREE TO SHIFT IT ENTIRELY TO PRODUCTION OF CHLORINEFREE PULP BY SEPTEMBER 1995 WHITE HOUSE ENVIRONMENTAL CHIEF MCGINTY WHEN ASKED IF SHE HAS QUALMS ABOUT HELPING LOUISIANAPACIFIC WITH A TOUGH POLICY ON CHLORINETREATED PAPER PLEADS IGNORANCE OF ITS PAST ENVIRONMENTAL RUNINS I GUESS I'M KIND OF RECALLING SOMETHING LOUISIANAPACIFIC WAS INVOLVED IN SHE SAYS WHEN PRESSED BUT THAT HAS NOT BEEN IN MY MIND AT ALL 9308240103 930824 INTERNATIONAL ISRAELI MILITARY TRIES TOTAL QUALITY MANAGEMENT TO MAKE THE MOST OF A SMALL ARMY AND BUDGET BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL GAZA CITY OCCUPIED GAZA STRIP IN BUSINESS THE CONCEPT CALLED TOTAL QUALITY MANAGEMENT HAS BEEN TRIED ON THE ASSEMBLY LINE AND IN THE OFFICE TO MAKE THEM MORE EFFICIENT NOW IT IS BEING APPLIED BY THE ISRAELI MILITARY TO HELP IT COPE MORE EFFECTIVELY WITH THE PALESTINIAN POPULAR UPRISING THE INTIFADA W EDWARDS DEMING A STATISTICIAN DEVELOPED TQM IN THE 1930S TO IMPROVE ORGANIZATIONAL PERFORMANCE AND QUALITY BY CONTINUOUSLY COLLECTING AND ANALYZING DATA ENCOURAGING WORKER INVOLVEMENT AND PUTTING THE CUSTOMER FIRST IT CAUGHT ON FIRST IN JAPAN LATER IN THE US WHILE TQM IS USED PRIMARILY IN THE CORPORATE WORLD THE US ARMY HAS IMPLEMENTED IT THOUGH ALMOST EXCLUSIVELY IN LOGISTICS AND MAINTENANCE BASES ISRAEL'S ARMY SAYS IT'S THE FIRST TO TEST WHETHER TQM HAS ANY USE IN COMBAT UNITS WE HAVE FEWER SOLDIERS THAN OUR ENEMIES SO TO WIN A WAR WE HAVE TO BE BETTER SOLDIERS SAYS BRIG GEN AMRAM EITAN ASSISTANT TO THE CHIEF OF STAFF FOR THE IMPLEMENTATION OF TQM IN THE ISRAEL DEFENSE FORCES AND BECAUSE OUR BUDGET IS SHRINKING WE NEED TO FIND WAYS TO CUT COSTS THE ARMY EARMARKED ONE MILLION SHEKELS 358000 FOR THIS YEAR'S PILOT PROGRAM IN WHICH 50 UNITS ARE PARTICIPATING ISRAELI ARMY HEADQUARTERS FOR THE NORTHERN DISTRICT OF THE OCCUPIED GAZA STRIP LOOKS OUT ON THE CENTER OF GAZA CITY BUT IT IS THE WALLS OF THE DISTRICT COMMANDER'S OFFICE THAT PROVIDE THE CLEAREST VIEW OF THE INTIFADA ON HUGE FLOORTOCEILING CHARTS IN COLORED MARKERS COL SHAUL ISRAELI MILITARY SECURITY BARS USING HIS LAST NAME KEEPS A RUNNING TALLY ON EVERYTHING FROM THE NUMBER OF SOLDIERS AND CIVILIANS KILLED AND INJURED TO HOW MANY DEMONSTRATIONS TAKE PLACE ROCKTHROWERS ARE CAPTURED AND UNDERGROUND BUNKERS AND ARMS CACHES ARE UNCOVERED HE KNOWS THE AMOUNT OF TAXES COLLECTED EVERY MONTH EVEN THE NUMBER OF ROBBERIES HE HAS A SEPARATE CHART DEVOTED TO THE TRACKING AND CAPTURE OF ARMED PALESTINIANS WANTED FOR KILLING OTHER PALESTINIANS OR ISRAELI SOLDIERS THE CHARTS ARE PART OF HIS EFFORT TO DEMONSTRATE THAT IN COL SHAUL'S WORDS TQM ALSO APPLIES TO PEOPLE WHO SHOOT THE INFORMATION ON HIS CHARTS IS SUPPLIED EVERY WEEK BY A WORKING GROUP THE COLONEL SET UP AFTER TAKING COMMAND FIVE MONTHS AGO THE GROUP INCLUDES REPRESENTATIVES OF EACH OF THE ISRAELI SECURITY FORCES THAT OPERATE IN HIS SECTION OF GAZA I HAVE A SET NUMBER OF SOLDIERS AND WE'RE ALWAYS SHORT OF MEN AND RESOURCES THIS HELPS ME TO DECIDE WHAT PROBLEM IS THE MOST IMPORTANT AND TO FOCUS MY FORCES THERE HE SAYS THE WORKING GROUP DEVELOPED A SYSTEM TO SPEED THE ARMY'S RESPONSE TO RIOTS AND OTHER DISTURBANCES THAT INCLUDED INSTALLING FAX MACHINES SO SOLDIERS NO LONGER HAVE TO DRIVE THROUGH TRAFFIC TO GET THE INFORMATION TO HEADQUARTERS BUT THE ARMY'S MAIN PROBLEM SAYS COL SHAUL IS CAPTURING PALESTINIAN GUNMEN HE CREATED A SPECIAL GROUP OF SOLDIERS WHO FOCUS EXCLUSIVELY ON THE TASK IN THE PAST WE SPENT A LOT OF TIME TRAINING A SOLDIER HOW TO DO IT BUT THEN HE WOULD ALSO HAVE TO TAKE A TURN COOKING GUARDING AND CLEANING THIS WAS A WASTE OF ARMY RESOURCES AND NOT AN EFFECTIVE WAY TO CAPTURE TERRORISTS SAYS COL SHAUL NOW THIS SOLDIER IS TREATED LIKE A KING HE DOESN'T DO ANYTHING ELSE EXCEPT CATCH TERRORISTS OTHER SOLDIERS WHO CAN'T DO WHAT HE DOES ARE ASSIGNED TO DO HIS COOKING CLEANING AND GUARDING THE ARMY WON'T DISCLOSE STATISTICS ON THE NUMBER OF GUNMEN CAPTURED IN NORTHERN GAZA BUT COL SHAUL SAYS IT'S ON THE RISE IN PART BECAUSE OF THE NEW SYSTEM BEFORE ARRIVING IN GAZA HE HEADED A TRAINING BASE FOR PARATROOPERS WHERE HE ALSO IMPLEMENTED TQM THE MAIN PROBLEM THERE HE SAYS WAS A LARGE NUMBER OF WEAPONS THAT COULDN'T FIRE OVER FOUR MONTHS IT COST THE ARMY 204000 SHEKELS TO FIX 345 GUNS INVESTIGATION REVEALED THAT 70 OF THE MONEY WENT FOR REPAIRING RIFLE BARRELS SOLDIERS WERE USING RIFLES TO BREAK OPEN LOCKS OFFICERS WEREN'T GIVING CLEAR INSTRUCTIONS ON HOW TO PROPERLY CLEAN THE GUNS AND THERE WASN'T ENOUGH PROPER CLEANING FLUIDS SO SOLDIERS WERE USING ANYTHING THAT CAME TO HAND THE UNIT'S OFFICERS WERE ORDERED TO DO MORE INSPECTIONS AND TO DEMONSTRATE PROPER GUN CARE SOLDIERS WHO DIDN'T CLEAN THEIR GUNS WERE PUNISHED AT THE END OF FOUR MONTHS THERE WERE ONLY 68 FAULTY WEAPONS SAVING 183000 SHEKELS IN REPAIR COSTS WE DID THE SAME THING WITH THE OTHER PARATROOPERS ON THE BASE AND ENDED UP SAVING 15 MILLION SHEKELS DURING THE YEAR AND INCREASING THE NUMBER OF GUNS READY TO SHOOT SAYS COL SHAUL WHO HAS A MASTER'S DEGREE IN MANAGEMENT FROM TEL AVIV UNIVERSITY USING A SIMILAR PROCESS HE ALSO SIGNIFICANTLY REDUCED THE NUMBER OF LOST TRAINING DAYS DESPITE COL SHAUL'S SUCCESS BOAZ RONEN AN EXPERT IN TQM AT TEL AVIV UNIVERSITY SAYS IMPLEMENTING THE PHILOSOPHY IN COMBAT UNITS WILL BE DIFFICULT TQM EMPHASIZES IMPLEMENTING CHANGE OVER THE LONG TERM BUT OFFICERS GET NEW ASSIGNMENTS EVERY TWO TO THREE YEARS IT ENCOURAGES MANAGEMENT BASED ON INFORMALITY AND DECENTRALIZATION THE OPPOSITE OF MILITARY CULTURE MOREOVER IT'S DIFFICULT TO MEASURE PERFORMANCE IN AN ARMY BUSINESSES MEASURE PERFORMANCE BY PROFIT AND LOSS MARKET SHARE OR THE NUMBER OF PRODUCT DEFECTS SAYS MR RONEN BUT IN A TANK BATTALION OR A SQUADRON OF PILOTS HOW DO YOU MEASURE PERFORMANCE AT AN AIR FORCE LOGISTICS BASE IN TEL AVIV TQM HAS BEEN USED TO REDUCE LINES AT THE ARMY CANTEEN IMPLEMENT MORE EFFICIENT TRAFFIC MANAGEMENT AND REDUCE THE TIME IT TAKES TO FIX EQUIPMENT BUT IN COMBAT UNITS SAYS TQM EXPERT MOSHE DOV THE CUSTOMER ISN'T ANOTHER SOLDIER IT'S THE STATE THAT'S VERY ABSTRACT BEYOND WINNING A WAR A SOLDIER CAN'T DETERMINE WHAT THAT CUSTOMER WANTS COL SHAUL SAYS HE KNOWS THE DRAWBACKS BUT STILL SAYS TQM CAN BE ADAPTED TO COMBAT UNITS NO ONE EXPECTS TQM TO STOP THE INTIFADA OR FOR A SOLDIER TO THINK ABOUT IT WHEN THE BULLETS START FLYING IN THE MIDDLE OF A BATTLE HE SAYS BUT IT CAN MAKE HIM A BETTER SOLDIER EVEN BEFORE HE GETS TO PULLING A TRIGGER 9308240102 930824 REVIEW & OUTLOOK EDITORIAL CORRUPTION WARS IN RUSSIAN POLITICS CRIMINAL INVESTIGATIONS ARE WAR BY OTHER MEANS LAST MONTH THE ANTIYELTSINITES STAGED A RAID ON THE OFFICES OF YELTSIN CONFIDANTE MIKHAIL POLTERANIN BUT DIDN'T PRODUCE ANY EVIDENCE THAT WOULD DESTROY HIS CAREER ON WEDNESDAY THE PROREFORM INVESTIGATORS MAY HAVE BAGGED THEIR FIRST BIG PRIZE THEY REVEALED THAT VICE PRESIDENT ALEXANDER RUTSKOI HAS A MYSTERIOUS SWISS BANK ACCOUNT THE REFORMIST INVESTIGATORS ALSO CLAIM THEY HAVE A TAPE OF A PHONE CALL IN WHICH THE HEAD OF THE ANTIYELTSIN INVESTIGATORS VALENTIN STEPANKOV CAN BE OVERHEARD ARRANGING THE ASSASSINATION OF ONE OF THE PROYELTSIN INVESTIGATORS YESTERDAY MR STEPANKOV DENIED THE ACCUSATION MR RUTSKOI IS THE ONE WHO FIRST TRIED TO DISGRACE MR POLTERANIN WITH UNCORROBORATED CORRUPTION CHARGES SO HE CAN'T COMPLAIN ABOUT THE RULES OF THIS GAME HE IS THE ONLY POLITICAL FIGURE WITH THE NATIONAL STANDING TO GO HEADTOHEAD WITH MR YELTSIN AND HAS EMERGED AS A POSSIBLE ANTIREFORM SUCCESSOR IF INVESTIGATORS CAN SHOW THAT HIS ALLEGED SWISS ACCOUNT WAS FILLED WITH EMBEZZLED MONEY THEN IT WOULD REPRESENT A SHORTTERM VICTORY FOR THE YELTSIN FORCES BUT THIS IS HARDLY A WAY TO RUN A DEMOCRACY RUSSIA NEEDS TO SETTLE ITS POLITICAL DISPUTES AT THE BALLOT BOX NOT VIA DUELING PROSECUTORS WHICH IS WHY MR YELTSIN IS RIGHT TO CALL FOR ELECTIONS THIS FALL ANYWAY GIVEN THE LEVEL OF CORRUPTION IN MOSCOW THESE DAYS IF EVERYONE WHO HAS BROKEN A LAW IS FORCED OUT OF OFFICE THERE COULD BE NO ONE LEFT IN GOVERNMENT OR IN THE PRIVATE SECTOR FOR THAT MATTER THE PROBLEM IS NOT ONLY THAT SOME PEOPLE AT THE TOP ARE VENAL BUT LEGAL CHAOS MEANS THAT IT IS ALMOST IMPOSSIBLE TO SUCCEED WITHOUT BREAKING SOME LAW OR ANOTHER THE SOLUTION IS TO CREATE A SYSTEM OF LAWS AND ENFORCEMENT THAT DOESN'T DETER CIVILIZED BEHAVIOR IT'S OFTEN SAID THAT ECONOMIC REFORM HAS CREATED THE CLIMATE FOR RAMPANT CORRUPTION NOT SO THE OLD CORRUPTION NOTORIOUS IN THE BREZHNEV ERA HAS JUST BEEN TRANSFORMED THE DESSICCATION OF THE COMMUNIST PARTY HAS TRANSFORMED IT FROM A SYSTEM OF ORGANIZED CORRUPTION INTO A SYSTEM OF CHAOTIC CORRUPTION UNDER COMMUNISM THE COIN OF THE REALM WAS ACCESS THE ABILITY TO GET INTO CERTAIN RESORTS DACHAS AND STORES WITH WESTERN GOODS THOSE WHO CONTROLLED ACCESS BECAME FANTASTICALLY WEALTHY AND POWERFUL RECENT BOOKS HAVE REVEALED THE AMAZING CORRUPTION OF SUCH FIGURES AS UZBEK SOCIALIST HERO AKHMADZAN ADYLOV WHO HAD MANSIONS A MENAGERIE LIONS THOROUGHBREDS PEACOCKS MISTRESSES A PRIVATE UNDERGROUND PRISON THAT COULD HOLD 1000 MEN AND A SLAVE LABOR FORCE OF 30000 RUSSIAN JOURNALISTS HAVE UNCOVERED CASES WHERE KICKBACKS WERE INDUCING SOVIET BUYERS TO PURCHASE WESTERN GOODS AT PRICES THAT WERE TWICE WORLD LEVEL TODAY THE FORMER COMMUNISTS STILL CONTROL ACCESS EXCEPT THAT BEFORE THEY HAD THE ABILITY TO LET PEOPLE INTO THE WORLD OF STATEOWNED WEALTH AND NOW THEY USE THEIR POWER TO ERECT OBSTACLES TO THOSE WHO SEEK PRIVATE WEALTH TOP GOVERNMENT OFFICIALS USE EXPORT LICENSES QUOTAS AND BUILDING PERMITS AS BRIBERY BAIT ON THE LOWEST LEVEL ARE POLICEMEN WHO STOP CARS ON FLIMSY PRETEXTS SOLELY IN ORDER TO COLLECT BRIBES THE PATTERN IS THE SAME SOMEBODY IS TRYING TO GET ON WITH BUSINESS AND SOME OFFICIAL WAVES A WHITE STICK AND FORCES HIM TO PAY UP BEFORE MOVING ON AMAZING AS IT MAY SEEM TO RUSSIANS THEIRS IS NOT THE MOST CORRUPT POSTSOVIET NATION THE GENERAL RULE IS THAT THE FURTHER A NATION IS DOWN THE PATH TO REFORM THE LESS THE NOMENKLATURA WILL BE ABLE TO CONTROL ECONOMIC ACTIVITY AND USE IT TO LINE ITS POCKETS BY THIS STANDARD CORRUPTION IN UKRAINE IS MORE RAMPANT THAN THAT IN RUSSIA THE NATIONS OF CENTRAL EUROPE TO VARYING DEGREES ARE HAVING SIMILAR PROBLEMS IT'S WORTH POINTING OUT THAT IN PLACES WHERE THE OLD GUARD REMAINS COHERENT THEY DO NOT USE THEIR POWER TO COMBAT THE FORMER BLACK MARKETEERS WHO HAVE BLOSSOMED INTO MAFIOSO IN SUCH PLACES A STRONG GOVERNMENT IS SIMPLY ANOTHER LAYER OF CORRUPTION ABOVE THE MAFIOSO SOMETIMES IT IS HARD TO DISTINGUISH BETWEEN THE TWO FAR FROM BEING THE CAUSE OF THE CORRUPTION ECONOMIC REFORM IS A WAY OUT EVERY DAY THERE ARE MORE AND MORE BANKERS SHAREHOLDERS OF PRIVATIZED FACTORIES AND SMALLBUSINESS OWNERS WHO WOULD LIKE TO LAY DOWN STABLE BUSINESSES THEY ARE THE CONSTITUENCY FOR AN HONEST LEGAL STRUCTURE WE ARE BEGINNING TO SEE THEM EXERT THEIR POLITICAL PRESSURE ALL OF THIS IS TO SAY THAT THE MASSIVE PROBLEM OF CORRUPTION IN THESE COUNTRIES CANNOT BE SOLVED BY AN IRON FIST OR BY PROSECUTIONS IT CAN BE SOLVED ONLY IN A DURABLE WAY BY SPEEDY ECONOMIC AND LEGAL REFORMS THAT GIVE CIVILIZED BUSINESS PEOPLE AN ADVANTAGE OVER THE UNCIVILIZED 9308240101 930824 POLITICS & POLICY DEMOCRATS CURRENTLY HOLD AN EDGE IN SOFT MONEY' WASHINGTON IN THE FIRST HALF THE DEMOCRATS HELD AN ADVANTAGE OVER THE GOP IN SOCALLED SOFT MONEY THE LARGE CONTRIBUTIONS FOR PARTYBUILDING ACTIVITIES THAT AREN'T RESTRICTED BY FEDERAL ELECTION LAWS ACCORDING TO A STUDY BY COMMON CAUSE THE DEMOCRATIC PARTY TOOK IN 68 MILLION IN SOFTMONEY CONTRIBUTIONS WHILE REPUBLICANS TOOK IN 42 MILLION WHEN GEORGE BUSH OCCUPIED THE WHITE HOUSE THE REPUBLICANS OFTEN HELD A 41 SOFTMONEY ADVANTAGE BUT THE TREND WAS REVERSED IN THE SECOND HALF OF 1992 WHEN PRESIDENT CLINTON APPEARED LIKELY TO WIN THE PRESIDENCY ACCORDING TO THE STUDY THE TOP DEMOCRATIC CONTRIBUTORS WERE BENEFICIAL CORP A FINANCIAL SERVICES COMPANY WHICH GAVE 265000 AND THE AMERICAN FEDERATION OF STATE COUNTY AND MUNICIPAL EMPLOYEES WHICH GAVE 129500 THE MOST GENEROUS CONTRIBUTORS TO THE GOP WERE MERRILL LYNCH & CO WITH 205000 AND ATLANTIC RICHFIELD CO WITH 136000 HEDGING THEIR BETS SOME BIG CONTRIBUTORS GAVE TO BOTH PARTIES ARCO FOR EXAMPLE ALSO GAVE 35000 TO THE DEMOCRATS ARCHERDANIELSMIDLAND CO GAVE 46500 TO THE DEMOCRATS AND 30000 TO THE GOP WHILE ADM CHAIRMAN DWAYNE ANDREAS GAVE THE REPUBLICANS AN ADDITIONAL 25000 SOFTMONEY CONTRIBUTIONS WOULD BE OUTLAWED IN CAMPAIGNFINANCE LEGISLATION PROPOSED BY PRESIDENT CLINTON AND PASSED BY THE SENATE THE HOUSE HAS YET TO ACT ON THE LEGISLATION 9308240100 930824 DELTA AIR LINES OFFERING EARLY RETIREMENT TO 3000 ATLANTA DELTA AIR LINES SAID IT OFFERED EARLY RETIREMENT TO ABOUT 3000 WORKERS WHICH IF TAKEN BY ALL COULD RESULT IN A ONETIME CHARGE OF 210 MILLION THE AIRLINE SAID IT EXPECTS TO RECOVER THE EXPENSE THROUGH COST SAVINGS AND INCREASED PRODUCTIVITY WITHIN TWO YEARS THE OFFER IS THE LATEST IN A SERIES OF COSTCUTTING MOVES BY DELTA OVER THE PAST FEW YEARS SINCE MAY 1992 IT HAS CUT STAFF BY 77 OR 6200 JOBS THE AIRLINE SAID EARLY THIS YEAR DELTA CUT ITS QUARTERLY DIVIDEND TO FIVE CENTS A SHARE FROM 30 CENTS IN THE FOURTH QUARTER ENDED JUNE 30 DELTA HAD NET INCOME OF 71 MILLION ON REVENUE OF 313 BILLION IT POSTED A PERSHARE LOSS OF 41 CENTS AFTER PAYMENT OF PREFERRED DIVIDENDS A YEAR EARLIER DELTA HAD A LOSS OF 1802 MILLION OR 372 A SHARE ON REVENUE OF 283 BILLION DELTA SHARES CLOSED AT 52375 UP 50 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9308240099 930824 FUQUA CREATES FUND FOR SCHOOL ATLANTA A 10 MILLION FUND TO SUPPORT A PRIVATE SCHOOL IN FARMVILLE VA HAS BEEN ESTABLISHED BY JB FUQUA A LOCAL BUSINESSMAN AND PHILANTHROPIST THE PLANS FOR PRINCE EDWARD ACADEMY WHICH WILL BE RENAMED THE FUQUA SCHOOL CALL FOR A NEW SCIENCE LABORATORY COMPUTER ACCESS FOR EVERY STUDENT AND A NEW MULTIPLEUSE CENTER TEACHER INCENTIVES AS WELL AS STUDENT SCHOLARSHIPS WILL BE OFFERED PARTICULARLY FOR MINORITY CHILDREN MR FUQUA 75 FOUNDED THE FORMER FUQUA INDUSTRIES INC WHICH RECENTLY CHANGED ITS NAME TO ACTAVA GROUP INC 9308240098 930824 MORGAN STANLEY POSTS 88 NET RISE FOR ITS 2ND PERIOD BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MORGAN STANLEY GROUP INC POSTED SURPRISINGLY STRONG PROFIT OF 2242 MILLION FOR ITS FISCAL SECOND QUARTER REFLECTING BIG GAINS IN EUROPEANBOND TRADING AMID DECLINING INTEREST RATES MORGAN STANLEY'S PERSHARE NET INCOME OF 277 FOR THE QUARTER ENDED JULY 31 FAR EXCEEDED ANALYSTS' FORECAST OF 174 A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC RESULTS WERE 88 HIGHER THAN THE 119 MILLION OR 136 A SHARE A YEAR EARLIER MORGAN'S SOLID SHOWING BUOYED ITS STOCK TO A 52WEEK HIGH OF 78875 UP 125 CENTS A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE LATE YESTERDAY MORGAN'S SHARES HAVE SOARED 41 SO FAR THIS YEAR BUT SOME ANALYSTS SAY MORGAN'S STOCK PRICE COULD SOON TUMBLE DESPITE EXPECTATIONS THAT THE FIRM'S PROFIT WILL CONTINUE TO RISE ONE REASON IS THAT MORGAN STANLEY'S SHARES NOW TRADE AT NEARLY TWO TIMES BOOK VALUE OR ASSETS MINUS LIABILITIES THAT'S A VERY HIGH MULTIPLE FOR A CAPITALINTENSIVE COMPANY IN FINANCIAL SERVICES SAYS WILLIAM HARTMAN A BROKERAGE ANALYST FOR JP MORGAN SECURITIES INC WHO RECENTLY DOWNGRADED MORGAN STANLEY'S SHARES FROM A BUY TO A MARKET PERFORMER BASED ON THEIR RECENT RISE INDEED MR HARTMAN AND SEVERAL OTHER ANALYSTS EXPECT THAT BROKERAGESTOCK PRICES AFTER SURGING MORE THAN 35 SO FAR THIS YEAR AMID A STRONG TRADING AND UNDERWRITING MARKET WILL SOON DECLINE THE FUNDAMENTALS FOR THE INDUSTRY REMAIN EXTREMELY FAVORABLE BUT THE STOCKS HAVE MOVED VERY STRONGLY AND ARE RIPE FOR A CONSOLIDATION MEANWHILE MORGAN STANLEY IS POSITIONED TO POST CONTINUED STRONG PROFIT THAT'S PARTLY BECAUSE THE VOLATILE CURRENCY MARKETS PROMISE TO PROVIDE A TRADING WINDFALL FOR MORGAN STANLEY AND OTHER BIG INVESTMENT BANKS ANALYSTS SAY IT LOOKS AS THOUGH BUSINESS HAS BEEN STRONG THROUGH THE SUMMER SAYS LAWRENCE ECKENFELDER A BROKERAGE ANALYST AT PRUDENTIAL SECURITIES INC IT'S TURNING OUT TO BE THE STRONGEST AUGUST THE FIRM HAS EVER HAD AND THE WORD IS THAT THERE ARE NO SIGNS NOW THAT THAT'S GOING TO LET UP DRAMATICALLY MR ECKENFELDER SAYS THE RECENT SURGE IN MERGERANDACQUISITION ACTIVITY IS LIKELY TO BENEFIT MORGAN STANLEY MORE THAN OTHER BROKERAGE FIRMS MORGAN STANDS TO RECEIVE A 20 MILLION ADVISORY FEE FOR ITS ROLE IN AMERICAN TELEPHONE & TELEGRAPH CO'S RECENT AGREEMENT TO BUY MCCAW CELLULAR COMMUNICATIONS CO FOR 126 BILLION IN STOCK MR HARTMAN ESTIMATES THAT THE AT&T/MCCAW DEAL SHOULD ADD AS MUCH AS 25 CENTS A SHARE TO MORGAN STANLEY'S EARNINGS WHEN THE DEAL IS BOOKED THE INCREASE IN M&A WILL HELP THEM SUSTAIN STRONG INVESTMENTBANKING REVENUE AS UNDERWRITING TAPERS OFF SOME HE SAYS FOR THE SECOND QUARTER MORGAN STANLEY HAD TOTAL REVENUE OF 249 BILLION 19 HIGHER THAN A YEAR EARLIER INVESTMENTBANKING REVENUE CLIMBED 12 BUT PRINCIPAL TRADING OR USING THE FIRM'S OWN CASH WAS THE BIG DRIVER FOR THE QUARTER WITH REVENUE MORE THAN DOUBLING TO 5178 MILLION 9308240097 930824 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 15/16 LOW 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 3 30 TO 44 DAYS 310 45 TO 89 DAYS 311 90 TO 149 DAYS 322 150 TO 179 DAYS 323 180 TO 239 DAYS 330 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 311 30 DAYS 314 60 DAYS 315 90 DAYS CERTIFICATES OF DEPOSIT 255 ONE MONTH 265 TWO MONTHS 269 THREE MONTHS 283 SIX MONTHS 298 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 307 ONE MONTH 313 THREE MONTHS 328 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 304 60 DAYS 305 90 DAYS 307 120 DAYS 317 150 DAYS 317 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 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 5/8 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 668 60 DAYS 676 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 669 60 DAYS 679 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5 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 9308240096 930824 WHO'S NEWS J BAKER INC J BAKER INC CANTON MASS CHARLES P HUDSON 39 YEARS OLD WHO RAN THE SHOE AND APPAREL RETAILER'S PARADE OF SHOES DIVISION WILL RESIGN OVER A PHILOSOPHICAL DIFFERENCE AS TO THE OVERALL FUTURE STRATEGY FOR THE DIVISION SAID CHIEF EXECUTIVE OFFICER JERRY SOCOL MR HUDSON WHO IS AN EXECUTIVE VICE PRESIDENT WILL REMAIN AT J BAKER UNTIL OCT 31 HE DECLINED TO COMMENT OTHER COMPANY OFFICIALS COULD NOT BE REACHED 9308240095 930824 DUTCH CONSUMER INDEX RISES THE HAGUE CONSUMER CONFIDENCE IN THE NETHERLANDS HAS RISEN SHARPLY SO FAR IN AUGUST TO ITS HIGHEST SINCE JANUARY BUT IS STILL SIGNIFICANTLY LOWER THAN A YEAR EARLIER THE GOVERNMENT SAID THE IMPROVEMENT WAS YET ANOTHER INDICATOR THAT THE DUTCH ECONOMY MAY BE STIRRING OUT OF ITS YEARLONG STAGNATION THE CENTRAL BUREAU FOR STATISTICS REPORTED THE AUGUST CONFIDENCE INDEX ROSE SEVEN POINTS FROM JULY TO 83 IN THE OPENING MONTH OF 1993 THE INDEX STOOD AT 84 UP FROM DECEMBER'S 76 CONFIDENCE HAS IMPROVED MODESTLY SINCE MARCH WHEN IT HIT A 1993 LOW OF 73 THE INDEX IS BASED ON A SURVEY OF 1000 RESPONDENTS WHO ARE CANVASSED MONTHLY A SCORE OF 100 REFLECTS AN EVEN BALANCE OF POSITIVE AND NEGATIVE RESPONSES 9308240094 930824 DIVIDEND NEWS CENTENNIAL SAVINGS BANK FSB CENTENNIAL SAVINGS BANK FSB DURANGO COLO SAID ITS BOARD DECLARED A SPECIAL CASH DIVIDEND OF 275 CENTS A SHARE PAYABLE ON OR ABOUT SEPT 24 TO STOCKHOLDERS OF RECORD ON SEPT 7 THE THRIFT SAID THE SPECIAL DIVIDEND IS BEING PAID IN CONNECTION WITH THE SALE OF A LOAN PACKAGE UNDER THE TERMS OF ITS PENDING ACQUISITION BY ASPEN BANCSHARES INC AN ASPEN COLO BANK HOLDING COMPANY CENTENNIAL SAID ITS BOARD ALSO DECLARED A REGULAR QUARTERLY DIVIDEND OF 10 CENTS A SHARE WITH THE SAME PAY AND RECORD DATES 9308240093 930824 COMMODITIES CORN AND SOYBEAN CONTRACTS RISE AMID FEARS AN EARLY FROST COULD DEVASTATE DELAYED CROPS BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO CORN AND SOYBEAN FUTURES CONTRACTS SURGED ON GROWING CONCERN ABOUT THE DAMAGE AN EARLY FROST COULD INFLICT ON IMMATURE PLANTS AT THE CHICAGO BOARD OF TRADE SOYBEANS FOR NOVEMBER DELIVERY WERE UP 7 1/4 CENTS TO 676 A BUSHEL WHILE THE DECEMBER CORN CONTRACT ROSE 2 1/4 CENTS TO 246 A BUSHEL IN MANY AREAS OF THE WESTERN AND NORTHERN CORN BELT THE CROP IS FAR BEHIND ITS USUAL DEVELOPMENT SCHEDULE BECAUSE OF PERSISTENT SPRING AND EARLYSUMMER RAINS THIS IS MORE OF A PROBLEM FOR CORN THAN SOYBEANS ANALYSTS SAY BECAUSE CORN REQUIRES CONSISTENTLY WARM WEATHER TO DEVELOP WHILE SOYBEAN PLANTS CAN FLOURISH IN COOLER TEMPERATURES IN ITS WEEKLY CROPCONDITION REPORT THE US AGRICULTURE DEPARTMENT YESTERDAY REPORTED THAT 45 OF THE NATIONAL CORN CROP HAS REACHED THE SOCALLED DOUGH STAGE AT WHICH KERNELS BEGIN TO YELLOW AND TAKE ON A DOUGHLIKE CONSISTENCY LAST YEAR AT THIS TIME 56 OF THE CROP WAS AT THE DOUGH STAGE OVER THE PAST FIVE YEARS AN AVERAGE OF 71 OF CROPS WERE AT THE DOUGH STAGE AT THIS TIME THE PROBLEM IS PARTICULARLY ACUTE IN NORTHERN AND WESTERN AREAS SUCH AS MINNESOTA SOUTH DAKOTA AND IOWA SAID PETER LEAVITT EXECUTIVE VICE PRESIDENT OF WEATHER SERVICES CORP A PRIVATE FORECASTING COMPANY IN BEDFORD MASS THE CORN CROP IS VERY FAR BEHIND IN THAT PART OF THE COUNTRY MR LEAVITT SAID IT'S HARD TO IMAGINE THAT A SIGNIFICANT PORTION OF THE CROP IN THESE AREAS IS GOING TO GET MATURE BEFORE THE END OF THE SEASON IT'S JUST NOT GOING TO HAPPEN IN MINNESOTA ONLY 7 OF THE CROP HAS REACHED THE DOUGH STAGE COMPARED WITH 34 LAST YEAR IN IOWA IT'S 15 COMPARED WITH 40 A YEAR EARLIER AND IN SOUTH DAKOTA 17 VS 31 LAST YEAR THE LATE DEVELOPMENT OF THE CROP IN THESE AREAS MAKES IT ESPECIALLY VULNERABLE TO AN EARLY FROST ANY FROST BEFORE THE END OF SEPTEMBER FOR INSTANCE COULD SUBSTANTIALLY CURTAIL YIELDS IN SOUTH DAKOTA AND MINNESOTA ACCORDING TO ANALYSTS IN THE HEART OF THE CORN BELT STATES SUCH AS IOWA ILLINOIS AND INDIANA NORMAL DATES FOR THE FIRST FROST OF FALL ARE OCT 10 TO OCT 15 TRADERS WILL CLOSELY WATCH WEATHER FORECASTS FROM BOTH PUBLIC AND PRIVATE WEATHER SERVICES FOR ANY SIGN OF COLD ARCTIC AIR THAT MIGHT MOVE INTO THE REGION BEFORE THOSE DATES THE IMMATURITY OF CROPS MEANS THEY NEED LATER FROST DATES IN GROWING SEASON SAID DANIEL BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO IN OTHER COMMODITY MARKETS YESTERDAY ENERGY PETROLEUM FUTURES GENERALLY ROSE ON A LATEDAY RALLY IN CRUDE OIL BUT PRICES OF NATURAL GAS FELL INTERRUPTING A TWOWEEK UPWARD TREND FOR THAT FUEL CRUDE OIL FOR OCTOBER DELIVERY SETTLED 24 CENTS HIGHER AT 1853 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE TRADERS ATTRIBUTED THE LASTMINUTE SURGE IN CRUDE FUTURES TO TECHNICAL FACTORS THERE WAS LITTLE NEWS TO ACCOUNT FOR IT ALTHOUGH POLITICAL TENSIONS AND THE THREAT OF AN OIL WORKERS STRIKE IN NIGERIA WHICH PRODUCES HIGHQUALITY CRUDES PROVIDED SOME SUPPORT TO THE OIL MARKET WHATEVER THE REASON THE FIRMNESS IN CRUDE PRICES WAS REFLECTED IN SOME PETROLEUM PRODUCT FUTURES WITH SEPTEMBER HEATING OIL RISING MORE THAN ONEHALF CENT A GALLON BUT IT DIDN'T REACH NATURAL GAS FUTURES THE SEPTEMBER CONTRACT FOR NATURAL GAS WHICH EXPIRES TODAY WAS DOWN 42 CENTS TO 2418 A MILLION BRITISH THERMAL UNITS IN HEAVY TRADING COFFEE COFFEE FUTURES PRICES SOARED AMID GROWING MARKET CONFIDENCE IN A NEW PRODUCTION RETENTION PLAN AMONG LATIN AMERICAN AND AFRICAN PRODUCERS THAT IS SET TO BEGIN OCT 1 INVESTORS APPEARED TO SHRUG OFF CONCERNS ABOUT HIGH LEVELS OF COFFEE STOCKS PUSHING UP THE ACTIVE DECEMBER CONTRACT 330 CENTS TO 7825 CENTS A POUND ON THE COFFEE SUGAR & COCOA EXCHANGE IN NEW YORK THIS WAS THE BIGGEST MOVE TO THE UPSIDE WE'VE HAD IN MONTHS SAID SCOTT MEYERS CHIEF ANALYST FOR REDEL TRADING TECHNICALLY THE MARKET BROKE OUT OF A CONGESTION AREA BELOW 76 CENTS A POUND MR MEYERS SAID AND THE FUNDAMENTALS LOOK INTACT IF THEY'RE GOING TO KEEP PRODUCT OFF THE MARKET PRICES SHOULD GO HIGHER THE NEW EXPORT PACT CALLS FOR PRODUCERS TO WITHHOLD 20 OF COFFEE EXPORTS WHEN PRICES FALL BELOW 75 CENTS A POUND DURING THE 199394 CROP YEAR STARTING OCT 1 SOME ANALYSTS REMAIN SKEPTICAL ABOUT WHETHER THE PACT CAN BE ENFORCED PRODUCERS ARE TO MEET IN BRASILIA BRAZIL NEXT MONTH TO WORK OUT ENFORCEMENT DETAILS 9308240092 930824 RAWSTEEL PRODUCTION ROSE 07 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 07 LAST WEEK TO 1867000 TONS FROM 1854000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 132 FROM THE 1649000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 89 OF ITS CAPACITY LAST WEEK COMPARED WITH 884 THE PREVIOUS WEEK AND 763 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9308240091 930824 BUSINESS BRIEF T2 MEDICAL NET FELL 40 IN 3RD PERIOD COMPANY RESTATES PROFIT FOR FIRST HALF ALPHARETTA GA T2 MEDICAL INC SAID FISCAL THIRDQUARTER EARNINGS FELL 40 AND THE HEALTHCARE PROVIDER REVISED ITS FIRST AND SECONDQUARTER EARNINGS SHARPLY DOWNWARD TO REFLECT THE RESULTS OF A CONTINUING INTERNAL INQUIRY THE DROP IN NET INCOME AND THE RESTATED FIGURES BOTH OF WHICH WERE EXPECTED FOLLOW THE DEPARTURES EARLIER THIS MONTH OF THE COMPANY'S CHIEF EXECUTIVE OFFICER JOSEPH C ALLEGRA WHO RESIGNED AND ITS CHIEF FINANCIAL OFFICER DAVID HERSH WHO TOOK ADMINISTRATIVE LEAVE WITH PAY AT THE TIME T2 PRONOUNCED T SQUARED SAID ITS BOARD'S AUDIT COMMITTEE HAD BECOME AWARE OF CERTAIN ACCOUNTING IRREGULARITIES AND ERRORS THE COMPANY HAS DECLINED TO COMMENT ON WHETHER THE TWO DEPARTURES WERE TIED TO THE ACCOUNTING PROBLEMS MR ALLEGRA AND MR HERSH HAVE ALSO DECLINED TO COMMENT FOR THE THIRD QUARTER ENDED JUNE 30 T2 SAID NET INCOME DROPPED TO 103 MILLION OR 25 CENTS A SHARE FROM 173 MILLION OR 43 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 25 TO 666 MILLION FROM 649 MILLION THE COMPANY SHAVED ITS PREVIOUSLY REPORTED EARNINGS FOR ITS FIRST AND SECOND QUARTERS BY 4 MILLION AND 87 MILLION RESPECTIVELY THAT BROUGHT FIRSTQUARTER EARNINGS TO 141 MILLION OR 35 CENTS A SHARE AND SECONDQUARTER EARNINGS TO 103 MILLION OR 25 CENTS A SHARE THE REVISED FIGURES REFLECT A SIGNIFICANT INCREASE IN PROVISIONS FOR SOCALLED DOUBTFUL ACCOUNTS APPARENTLY BILLINGS MADE BY T2 THAT NEITHER INSURERS NOR PATIENTS WILL COVER IN ITS REVISED FIGURES FOR THE NINE MONTHS ENDED JUNE 30 T2 SET ASIDE MORE THAN 20 MILLION FOR DOUBTFUL ACCOUNTS UP FROM 8 MILLION PROVIDED A YEAR EARLIER THE 20 MILLION REPRESENTS ALMOST 10 OF TOTAL REVENUE FOR THE FIRST THREE QUARTERS IN COMPARISON DOUBTFULACCOUNT PROVISIONS AMOUNTED TO 44 OF TOTAL REVENUE IN 1992 AND 56 IN 1991 ACCORDING TO THE COMPANY'S 1992 ANNUAL REPORT PREVIOUSLY T2 HAS BLAMED THE RECEIVABLES PROBLEM ON CHANGES IN THE REIMBURSEMENT PATTERNS OF INDEMNITY INSURANCE CARRIERS IN ADDITION TO THE DOUBTFULACCOUNTS PROVISIONS THE COMPANY CITED THREE OTHER CONTRIBUTORS TO ITS EARNINGS SLUMP A DROP IN REVENUE IN THE HOMEINFUSION THERAPY BUSINESS WHICH CONSTITUTES THE VAST MAJORITY OF T2 SALES AN INCREASE IN SELLING GENERAL AND ADMINISTRATIVE EXPENSES AND INCOME TAX ADJUSTMENTS T2 SAID THE RESTATEMENTS WOULD BE LIMITED TO FISCAL 1993 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE T2 CLOSED AT 775 UP 375 CENTS 9308240089 930824 WHO'S NEWS DIED HE EDDIE CHILES 83 FOUNDER AND FORMER CHAIRMAN OF WESTERN CO OF NORTH AMERICA AND FORMER OWNER OF THE TEXAS RANGERS BASEBALL TEAM SUNDAY IN FORT WORTH TEXAS AFTER A LONG ILLNESS 9308240088 930824 MONDAY'S MARKETS PROFITTAKING ENDS WEEKLONG RALLY IN STOCKS BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL THE STOCK MARKET RALLY FADED YESTERDAY AFTER ALL MAJOR INDEXES BARRELED TO RECORD LEVELS LAST WEEK BOND PRICES AND THE DOLLAR WERE MIXED THE DOW JONES INDUSTRIAL AVERAGE WAS DOWN 950 POINTS TO 360598 STANDARD & POOR'S 500STOCK INDEX FELL 093 TO 45523 AND THE NASDAQ COMPOSITE INDEX SLIPPED 010 TO 73086 THE INDUSTRIAL AVERAGE RETREATED NEARLY 22 POINTS IN EARLY TRADING BUT RECOVERED SOME OF THE LOST GROUND LAST WEEK IT HIT FOUR CONSECUTIVE HIGHS CATAPULTING OVER THE 3600 LEVEL FOR THE FIRST TIME ANALYSTS WEREN'T SURPRISED THAT INVESTORS MOVED IN FOR SOME PROFITTAKING IT'S NOT AN UNREASONABLE RESPONSE TO WHAT'S BEEN A VERY EXCELLENT MARKET ENVIRONMENT SAID JOHN SHAUGHNESSY DIRECTOR OF RESEARCH AT ADVEST INC IN HARTFORD CONN IT'S INEVITABLE BECAUSE OF THE NICE GAINS WE'VE HAD WEAKNESS IN OVERSEAS STOCK MARKETS ALSO PRESSURED PRICES IN THE US GERMAN STOCKS FELL 18 FRANCE 08 AND BRITAIN 05 IN RELATIVELY LIGHT TRADING AS INVESTORS TOOK PROFITS ANALYSTS SAID CONCERNS ARE RISING AGAIN WHETHER EUROPEAN INTEREST RATES WILL FALL AS QUICKLY AS EXPECTED SOME TRADERS FEAR THAT IF SENIOR OFFICIALS OF GERMANY'S CENTRAL BANK DON'T LOWER KEY INTEREST RATES THURSDAY FOREIGN INVESTORS COULD BEGIN DUMPING GERMAN SHARES NOBODY WANTS TO BUY AT THE MOMENT SAID JUERGEN ROSSA AN EQUITY SALESMAN AT B METZLER SEEL SOHN IN FRANKFURT BUT HE ADDED WE HAVE TO WAIT TO SEE WHAT HAPPENS ON THURSDAY SOME MARKET PARTICIPANTS EXPECT LOWER INTEREST RATES IF THAT HAPPENS THE MARKET WILL GO UP AGAIN WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 031 TO 11123 LONGTERM BOND PRICES ALSO GAVE BACK SOME GAINS AFTER A RECENT RALLY KNOCKED LONGTERM INTEREST RATES TO AS LOW AS 62 MR SHAUGHNESSY SAID HE THINKS RATES HAVEN'T FINISHED FALLING HE SEES THE YIELD ON THE TREASURY'S 30YEAR BOND DROPPING TO 6 OR LOWER BY THE FIRST QUARTER OF NEXT YEAR IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 210 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE DECLINING ISSUES OUTNUMBERED ADVANCERS 1032 TO 935 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16835 MARKS AND 10305 YEN COMPARED WITH 16755 MARKS AND 10435 YEN FRIDAY 9308240087 930824 INTERNATIONAL HOSOKAWA CALLS POLITICAL REFORM HIS TOP PRIORITY JAPAN'S PREMIER RULES OUT DEFICIT SPENDING IN BID TO BOOST THE ECONOMY BY DAVID P HAMILTON AND QUENTIN HARDY STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO DESPITE RECENT INDICATIONS THAT THE NATION'S ECONOMIC SLUMP MAY BE WORSENING JAPAN'S NEW PRIME MINISTER SAID HIS FIRST AND FOREMOST PRIORITY IS TO PASS POLITICALREFORM LEGISLATION BY THE END OF THE YEAR IN HIS FIRST MAJOR POLICY ADDRESS PRIME MINISTER MORIHIRO HOSOKAWA ON MONDAY RULED OUT DEFICIT SPENDING TO BOOST THE ECONOMY A MEASURE OPPOSED BY POWERFUL FINANCE BUREAUCRATS TO SPEED ECONOMIC RECOVERY HE PROMISED ONLY A VAGUE RANGE OF MEASURES INCLUDING DEREGULATION TAX REFORM AND PASSING ON BENEFITS OF THE HIGHER YEN TO JAPANESE CONSUMERS AT THE SAME TIME HE PLEDGED TO REDUCE JAPAN'S RECORD TRADE SURPLUS BY EXPANDING ACCESS TO THE JAPANESE MARKET FOR FOREIGN COMPANIES AND SPURRING DOMESTIC DEMAND MR HOSOKAWA'S SPEECH WITH ITS BROAD SCOPE AND RELATIVE LACK OF DETAIL APTLY ILLUSTRATES THE CONSTRAINTS ON JAPAN'S NEW GOVERNMENT A COALITION OF SEVEN FORMER OPPOSITION PARTIES WHILE ANALYSTS SAY THE GOVERNMENT IS LIKELY TO ENACT ITS PLANS TO REFORM JAPAN'S SCANDALRIDDEN MONEY POLITICS THEY SAY IT WILL FACE MOREDAUNTING OBSTACLES WHEN IT TURNS TO FIXING THE STAGNANT ECONOMY OR DISMANTLING THE TIGHT NETWORK OF POLITICIANS BUREAUCRATS AND COMPANIES THAT KEEP DOMESTIC PRICES HIGH AND EXPORTS OUT POLITICAL REFORM HAS BECOME A STRONG BOND TO HOLD THE GOVERNMENT TOGETHER SAID IKUO KABASHIMA A PROFESSOR AT THE UNIVERSITY OF TSUKUBA THE PROBLEM IS THAT WHEN THE GOVERNMENT ACHIEVES POLITICAL REFORM IT HAS NO MORE BOND THE NEW GOVERNMENT THE FIRST IN 38 YEARS TO TAKE POWER FROM THE LIBERAL DEMOCRATIC PARTY IS EXPECTED TO PRESS AHEAD WITH ITS POLITICAL REFORM PLAN MR HOSOKAWA SAID THE GOVERNMENT WILL REVAMP JAPAN'S ELECTORAL SYSTEM BY COMBINING SINGLEMEMBER DISTRICTS WITH LIMITED PROPORTIONAL REPRESENTATION AND BY OUTLAWING POLITICAL DONATIONS BY BUSINESSES AND INDUSTRY ASSOCIATIONS THOSE PLANS GOT AN EARLY BOOST LAST WEEK WHEN THE CHAIRMAN OF KEIDANREN JAPAN'S LEADING ECONOMIC FEDERATION AND FORMERLY ONE OF THE LDP'S LARGEST FUNDRAISERS SAID HE WOULD ASK THE ORGANIZATION TO CEASE MAKING POLITICAL DONATIONS AND TO ENCOURAGE ITS CORPORATE MEMBERS TO DO LIKEWISE THE BAN ON FUNDING WILL BECOME OFFICIAL AFTER A BOARD MEETING SEPT 2 A KEIDANREN SPOKESMAN SAID BEYOND POLITICAL REFORM THE PICTURE BECOMES MURKIER ESPECIALLY WHERE THE ECONOMY IS CONCERNED LAST WEEK THE ECONOMIC PLANNING AGENCY WHICH HAS CONSISTENTLY ERRED ON THE SIDE OF OPTIMISM IN FORECASTING ECONOMIC GROWTH SAID A RECOVERY IT HAD EARLIER PREDICTED HAS STALLED BECAUSE OF THE YEN'S RISE AND UNSEASONABLY COOL WEATHER ROBERT FELDMAN CHIEF ECONOMIST AT SALOMON BROTHERS ASIA LTD ESTIMATES THE ECONOMY SHRANK AT A SEASONALLY ADJUSTED ANNUAL RATE OF 1 OR MORE IN THE SECOND QUARTER FOLLOWING GROWTH OF 23 IN THE FIRST QUARTER THE ECONOMIC POLICIES MR HOSOKAWA OUTLINED IN HIS SPEECH ARE UNLIKELY TO PROVIDE MUCH OF A BOOST IN THE NEAR TERM ANALYSTS SAID HIS GOVERNMENT COULD MAKE PROGRESS IN AREAS SUCH AS DEREGULATION AND TAX REFORM BUT THEY WARNED THAT MEANINGFUL CHANGES IN JAPAN CAN TAKE YEARS LONGER THAN ALMOST ANYONE EXPECTS MR HOSOKAWA'S GOVERNMENT TO LAST LIKELY AREAS FOR DEREGULATION INCLUDE JAPAN'S TRANSPORTATION AND RETAILDISTRIBUTION SYSTEMS SAYS KUNJI OKUE ECONOMIST AT WI CARR LTD HE ALSO EXPECTS MR HOSOKAWA TO EASE IMPORT RESTRICTIONS IN THOSE THREE AREAS WE COULD SEE LOWER INFLATION AND MORE POTENTIAL FOR GROWTH MR OKUE SAYS JAPAN'S POWERFUL BUREAUCRATS WILL PROBABLY SUPPORT THESE CHANGES HE ADDED SINCE THEY DON'T COST A LOT OF MONEY TAX CUTS MAY PROVE HARDER TO EFFECT HOURS AFTER THE PRIME MINISTER'S SPEECH A FINANCE MINISTRY OFFICIAL SAID MR HOSOKAWA'S STAND AGAINST DEFICIT FINANCING EFFECTIVELY RULES OUT A SUBSTANTIAL INCOMETAX CUT EVEN FOR A SMALL TAX CUT THE MINISTRY WILL DEMAND RAISING TAXES ON OTHER THINGS LATER ON SAID HIROHIKO OKUMURA CHIEF ECONOMIST AT NOMURA RESEARCH INSTITUTE EVEN IF SHORT ON SPECIFICS MR HOSOKAWA'S RHETORIC OF CONSUMER EMPOWERMENT AND GOVERNMENT DECENTRALIZATION IS LIKELY TO STRIKE A RESPONSIVE CHORD WITH ANOTHER IMPORTANT CONSTITUENCY THE US GOVERNMENT OVER THE WEEKEND MEMBERS OF A CONGRESSIONAL DELEGATION VISITING TOKYO GUSHED OVER THE NEW GOVERNMENT WHAT YOU HAVE NOW IS A CHARISMATIC LEADER MAKING BOLD STATEMENTS SAID REP WILLIAM THOMAS R CALIF BY JANUARY HOSOKAWA WILL HAVE KNOCKED INNUMERABLE BALLS OUT OF THE PARK SUCH ADMIRATION DIDN'T STOP THE CONGRESSMEN FROM TURNING UP THE HEAT ON THE TRADE ISSUE DELEGATION LEADER REP SAM GIBBONS D FLA SAID CONGRESS EXPECTS JAPAN TO MEET SPECIFIC GOALS UNDER A USJAPAN TRADE FRAMEWORK AGREEMENT SIGNED LAST MONTH IN PARTICULAR MR GIBBONS SAID JAPAN SHOULD CUT ITS OVERALL TRADE SURPLUS IN HALF AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT AND INCREASE ITS IMPORTS OF FOREIGN MANUFACTURED GOODS BY 33 OVER A PERIOD OF A FEW YEARS MR GIBBONS ADDED THAT THE TWO GOVERNMENTS SHOULD HAMMER OUT THE DETAILS OF THE TRADE AGREEMENT BY A DEADLINE OF JAN 20 9308240086 930824 LEISURE & ARTS ON SPORTS REBELS PUT THE BRAKES ON A SOFTBALL DYNASTY BY FREDERICK C KLEIN STRATFORD CONN IF YOU DETEST SPORTS DYNASTIES YOU'D HAVE BEEN DELIGHTED BY THE DOINGS THAT CULMINATED HERE IN WINNING THEIR FIRST AMERICAN SOFTBALL ASSOCIATION WOMEN'S MAJOR FASTPITCH CHAMPIONSHIP THE REDDING CALIF REBELS THERE WAS EVEN MORE SPLASHY STUFF LIKE A BENCHCLEARING UH ARGUMENT THAT PUNCTUATED THE CHAMPIONSHIP CONTEST IN THE END THOUGH IT WAS THE LITTLE THINGS THAT COUNTED MOST WE BUNTED WELL MADE THE PLAYS IN THE FIELD AND TOOK ADVANTAGE OF OUR OPPORTUNITIES SUMMARIZED JULIE SMITH THE PONYTAILED REDDING SECOND BASEMAN AND LEADOFF HITTER WHO SCORED A RUN IN EACH GAME IN THE DECISIVE 30 AND 32 WINS OVER THE THERETOFORE ALMIGHTY RAYBESTOS BRAKETTES ON FRIDAY IT'S A GAME OF DETAILS AND TO WIN YOU GOTTA GET THEM RIGHT SMITH OF COURSE ASSUMED THAT ANYONE ATTENDING A FASTPITCH TOURNEY WOULD KNOW ABOUT THE ONE BIG THING THAT SO DOMINATES THE SPORT THAT IT'S IN THE NAME PUT A CRACK WINDMILLER IN AGAINST ANYTHING BUT TOPFLIGHT COMPETITION AND ALL OF HIS OR HER TEAMMATES SAVE THE CATCHER CAN TAKE A NAP THE BEST FEMALE PITCHERS CAN GENERATE SPEEDS OF UP TO 70 MPH WHICH FROM A MOUND 40 FEET FROM HOME PLATE CAN MAKE THE 12INCH SOFTBALL LOOK LIKE AN ASPIRIN TABLET THIS IS BOTH THE GAME'S GLORY AND GRIEF WHEN GOOD TEAMS MEET 10 IS THE TYPICAL TALLY 24 OF THE 45 GAMES IN THE WEEKLONG NATIONALS ENDED IN THAT SCORE AND THAT'S HARDLY PRIMETIME MATERIAL THE INCLUSION OF WOMEN'S FASTPITCH IN THE 1996 OLYMPICS IN ATLANTA A GOAL LONG SOUGHT BY THE GAME'S LEADERS PROBABLY WON'T BE ENOUGH TO CHANGE THE SITUATION THE UPSHOT IS THAT WHILE MILLIONS IN THIS LAND PLAY SOFTBALL THE SPORT IS THREADBARE AT THE ELITE LEVEL THE OLDEST TOP WOMEN'S TEAM IS THE BRAKETTES WHOSE SPONSOR RAYBESTOS PRODUCTS CO IS HEADQUARTERED IN NEARBY SHELTON CONN STARTED IN 1947 THEY HIT THEIR STRIDE WITH THEIR FIRST NATIONAL CHAMPIONSHIP 11 YEARS LATER SINCE THEN THE ASSEMBLAGE OF FORMER COLLEGE ALLAMERICANS HAS NOT ONLY WON 23 US TITLES AND THREE WORLD CROWNS BUT HAS BEEN NATIONALTOURNEY RUNNERUP 11 TIMES THE BRAKETTES PROVIDE PLAYERS WITH TRANSPORTATION BETWEEN THEIR HOMES AND THE TEAM'S STRATFORD BASE HOUSING WHILE THEY'RE HERE EXPENSESPAID ROAD TRIPS AND LOCAL PARTTIME JOBS TO COVER OTHER OUTLAYS IT'S A LONG WAY FROM PLUSH BUT IT'S THE BEST OFFER GOING THE BIG THING IS THE CHANCE TO REALLY PLAY SAYS CATHY WYLIE A 27YEAROLD BRAKETTE INFIELDER OF THE TEAM'S NOMADIC 70TO80GAME JUNEAUGUST ANNUAL SCHEDULE WHICH IS ABOUT TWICE AS BUSY AS THAT OF OTHER CLUBS THE BRAKETTES' PERENNIAL LONG SUIT NATURALLY HAS BEEN PITCHING AND THEIR CURRENT FOURSTARTER STAFF HAD SURRENDERED A TOTAL OF 20 RUNS IN THEIR 69 PRETOURNEY GAMES OF WHICH THEY'D WON 67 THEIR ACE IS LISA FERNANDEZ A CHUNKY 22YEAROLD WHO WAS COLLEGIATE PLAYER OF THE YEAR TWICE AT UCLA AND MOST VALUABLE PLAYER OF THE PAST TWO ASA NATIONALS SHE WAS THE ONE WITH THE TWOSEASON ZERO ERA SHE AND TALL LEFTY LORI HARRIGAN WON TWO GAMES EACH AND CHERI KEMPF WON ONE AS THE BRAKETTES SKIMMED TO THE FINALS WITH FIVE STRAIGHT WINS LAST WEEK OUTSCORING FOES 172 THE REDDING TEAM NATIONAL RUNNERUP IN 1990 AND LAST YEAR HAD IT TOUGHER IN MORE WAYS THAN ONE BASED IN A NORTHERN CALIFORNIA CITY OF 42000 IT CONSISTS OF PLAYERS FROM ALL OVER CALIFORNIA AND UNTIL LAST WEEK NEVER MANAGED TO GET ITS BEST NINE ON THE FIELD AT THE SAME TIME ITS SPONSOR AND COACH IS ROGER DAWES A MEAT DISTRIBUTOR WHO PAYS TEAM EXPENSES FROM HIS OWN POCKET EVERY MAN HAS A HOBBY THIS IS MINE HE SAYS THE REBELS LOST THEIR FOURTH TOURNEY GAME TO THE PHOENIX SUNBIRDS MAKING EVERY GAME FROM THERE DOORDIE ON THURSDAY NIGHT WHILE THE BRAKETTES ENJOYED A NIGHT OFF THE CALIFORNIA TEAM HAD TO WIN TWICE TO SURVIVE INCLUDING A REMATCH WITH THE SUNBIRDS THEY PREVAILED IN BOTH BY 10 SCORES ON FRIDAY NIGHT NEEDING TWO WINS TO THE BRAKETTES' ONE THE REBELS FIRST FACED THE FORMIDABLE FERNANDEZ THEY SCORED ALL THREE OF THEIR RUNS TWO OF THEM EARNED IN A MESSY FIFTH INNING ON TWO HITS AND A COUPLE OF BUNTS THAT BRAKETTE FIELDERS BOTCHED FRIDAY'S SECOND GAME MATCHED LEFTY MICHELE SMITH ONE OF THE REBELS' TWO HALE PITCHERS AGAINST THE BRAKETTES' KEMPF WHO'D WON ALL 18 OF HER 1993 STARTS AND AFTER THE HOME TEAM GOT SINGLE RUNS IN THE FIRST AND THIRD INNINGS THE DYNASTY'S CONTINUATION SEEMED ASSURED NO ONE COULD RECALL THE BRAKETTES BLOWING A 20 LEAD IN REDDING'S HALF OF THE THIRD THOUGH KEMPF BECAME PEEVED WHEN REBEL FIRST BASEMAN KELLY JACKSON STEPPED OUT OF THE BATTER'S BOX AS SHE WAS ABOUT TO THROW AND TOLD JACKSON SO THEN KEMPF STRUCK OUT JACKSON AND CHATTED WITH HER ABOUT THAT TOO WHEN A KEMPF PITCH STRUCK BARBARA JORDAN TWO BATTERS LATER THE REBELS POURED ONTO THE FIELD TO VOICE THEIR DISPLEASURE WITH HER FOLLOWED BY THE BRAKETTES IN DEFENSE NO PUNCHES WERE THROWN BUT MANY WORDS WERE FOR WHATEVER REASON IT WAS ALL REDDING FROM THERE THE REBELS SCORED SINGLE RUNS IN THE THIRD AND FOURTH INNINGS TO TIE AND AFTER A HIT BATSMAN BUNT SINGLE AND SACRIFICE BUNT PUT RUNNERS ON SECOND AND THIRD WITH ONE OUT IN THE SEVENTH AND FINAL INNING UCLA UNDERGRAD JENNIFER BRUNDAGE SMACKED A GROUND BALL THROUGH THE BRAKETTES' DRAWNIN INFIELD TO DRIVE IN THE WINNING RUN WE LOST OUR COOL IN THE SECONDGAME DISPUTE THEN WE LOST THE GAME BOTH INEXCUSABLE SAID BRAKETTE SHORTSTOP DOT RICHARDSON SAID REBEL JULIE SMITH WE SCRATCH FOR RUNS THAT'S OUR STYLE I GUESS THE ARGUMENT JUST MADE US SCRATCHIER 9308240085 930824 MARKETING BRIEF NOTED WHO'S NEWS METROGOLDWYNMAYER INC NAMED JOHN CALLEY 62 PRESIDENT OF ITS NEWLY REVIVED UNITED ARTISTS PICTURES STUDIO MGM IS A 985OWNED UNIT OF THE FRENCH STATEOWNED BANK CREDIT LYONNAIS SA MR CALLEY IS A VETERAN PRODUCTION EXECUTIVE WHO WORKED AT WARNER BROTHERS FROM 1968 TO 1981 MOST RECENTLY HE WAS AN INDEPENDENT PRODUCER AND PARTNER WITH DIRECTOR MIKE NICHOLS TIME WARNER INC NAMED VAL AZZOLI 38 YEARS OLD EXECUTIVE VICE PRESIDENT/GENERAL MANAGER OF ITS ATLANTIC RECORDS UNIT THE POSITION IS NEW MR AZZOLI WAS ATLANTIC'S SENIOR VICE PRESIDENT/GENERAL MANAGER 9308240084 930824 WHO'S NEWS PHILIP MORRIS PICKS MACDONOUGH AS CHIEF OF MILLER BREWING UNIT NEW YORK PHILIP MORRIS COS NAMED JOHN N MACDONOUGH 49 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OF ITS 39 BILLION MILLER BREWING CO UNIT MR MACDONOUGH SUCCEEDS WARREN H DUNN 58 WHO PLANS TO RETIRE AT THE YEAR END AFTER 27 YEARS WITH MILLER MR MACDONOUGH PREVIOUSLY PRESIDENT AND CHIEF OPERATING OFFICER JOINED THE COMPANY IN 1992 AFTER A 24YEAR CAREER IN THE BREWING AND FOOD INDUSTRIES WITH ANHEUSERBUSCH INC AND GENERAL MILLS INC IT MAKES SENSE FOR HIM TO BE CEO SAID EMANUEL GOLDMAN ANALYST AT PAINEWEBBER NOTING THAT MR MACDONOUGH HAD BEEN BRAND MANAGER FOR BUDWEISER BEER AND HEADED ANHEUSERBUSCH'S INTERNATIONAL MARKETING THE COMPANY SAID THE TRANSITION IS ORDERLY MR MACDONOUGH WILL BE SUCCEEDED BY JOHN D BOWLIN 42 CURRENTLY PRESIDENT OF OSCAR MAYER FOODS CORP A DIVISION OF THE COMPANY'S KRAFT GENERAL FOODS BUSINESS ROBERT A ECKERT 39 CURRENTLY EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER RETAIL CHEESE KRAFT USA SUCCEEDS MR BOWLIN THE COMPANY SAID IT NAMED ROGER K DEROMEDI 40 TO SUCCEED MR ECKERT PHILIP MORRIS IS A TOBACCO FOOD BREWING AND FINANCIAL SERVICES COMPANY 9308240083 930824 POLITICS & POLICY CLINTON WILL WITHDRAW PROPOSED RULE ON DEVELOPMENT OF ALASKAN WETLANDS BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION WILL WITHDRAW A RULE PROPOSED UNDER PRESIDENT BUSH THAT WOULD HAVE ALLOWED 15 MILLION ACRES OF ALASKAN WETLANDS TO BE DEVELOPED BUT IN A MOVE LESS LIKELY TO PLEASE ENVIRONMENTALISTS THE ADMINISTRATION WILL PROPOSE SHIFTING THE CHIEF RESPONSIBILITY FOR REGULATING AGRICULTURAL WETLANDS TO THE AGRICULTURE DEPARTMENT'S SOIL CONSERVATION SERVICE FROM THE ARMY CORPS OF ENGINEERS AND THE ENVIRONMENTAL PROTECTION AGENCY THE PROPOSED POLICIES DESIGNED BY AN INTERAGENCY TASK FORCE HEADED BY THE WHITE HOUSE'S OFFICE ON ENVIRONMENTAL POLICY ARE EXPECTED TO BE ANNOUNCED TODAY TAKEN AS A WHOLE THE WETLANDS PROPOSALS APPEAR TO REFLECT AN EFFORT BY THE CLINTON ADMINISTRATION TO RESOLVE LONGSTANDING CONTROVERSIES OVER WETLANDS REGULATION BY CAREFULLY PARCELING OUT CONCESSIONS TO ENVIRONMENTALISTS FARMERS AND DEVELOPERS WE'RE TAKING A PROGRAM THAT HAS BEEN HIGHLY CONTROVERSIAL AND CRITICIZED FROM ALL SIDES AND MAKING IT WORKABLE SAID AN EPA OFFICIAL THE ALASKA RULE PROPOSED BY THE BUSH ADMINISTRATION IN NOVEMBER 1992 WAS PREMISED ON THE FACT THAT MORE THAN 99 OF ALASKA'S WETLANDS IS UNDISTURBED UNDER THE SOCALLED ALASKA 1 RULE WETLANDS IN ALASKA WOULD HAVE BEEN EXEMPTED FROM FEDERAL REGULATION UNTIL FULLY 1 OF THE STATE'S WETLANDS HAD BEEN DEVELOPED IN PRACTICE THIS MEANT THAT AS MANY AS 15 MILLION ACRES OF ALASKAN WETLANDS COULD BE OPENED TO DEVELOPMENT BUT THE CLINTON ADMINISTRATION CONTENDS THAT SUCH A POLICY MIGHT MEAN THE LOSS OF ALL OF ALASKA'S 345000 ACRES OF COASTAL WETLANDS AND COULD HARM FEDERAL EFFORTS TO PROTECT FEDERALLY ENDANGERED SPECIES INSTEAD THE ADMINISTRATION WILL PROPOSE EASING REGULATIONS IN CERTAIN AREAS WHERE WETLANDS PROTECTION HAS PROVED INEFFECTIVE IN MOVING CHIEF RESPONSIBILITY FOR AGRICULTURAL WETLANDS TO THE SOIL CONSERVATION SERVICE WETLANDS POLICY WOULD SHIFT SOMEWHAT TOWARD THE INTERESTS OF FARMERS AND AWAY FROM ENVIRONMENTALISTS THE SOIL CONSERVATION SERVICE HAS HISTORICALLY HAD A MISSION PRIMARILY TO PROTECT FARMERS SAID JAN GOLDMANCARTER AN ATTORNEY FOR THE NATIONAL WILDLIFE FEDERATION THE NOTION OF PROTECTING WETLANDS IS NOT CENTRAL TO THE MISSION OF THE SOIL CONSERVATION SERVICE SEPARATELY THE CLINTON ADMINISTRATION WILL FINALIZE A RULE PROPOSED UNDER THE BUSH ADMINISTRATION EXCLUDING 53 MILLION ACRES OF CROP LAND AROUND THE COUNTRY FROM WETLANDS REGULATION UNDER THE CLEAN WATER ACT ON THE GROUNDS THAT THIS LAND WAS CONVERTED FROM WETLANDS TO CROP LAND BEFORE THE PASSAGE OF CERTAIN WETLANDS LEGISLATION BUT THE CLINTON ADMINISTRATION ALSO PLANS TO ISSUE AN EXECUTIVE ORDER ADOPTING AN INTERIM GOAL OF NO OVERALL NET LOSS OF THE NATION'S REMAINING WETLANDS ACCORDING TO A DRAFT COPY OF THE TASK FORCE'S REPORT IN ADDITION THE CLINTON ADMINISTRATION WILL PROPOSE USE OF MITIGATION BANKING A METHOD OF WETLANDS PROTECTION IN WHICH INDIVIDUALS WHO DEVELOP WETLANDS PAY A CERTAIN SUM TO BE USED TO PRESERVE OR CREATE WETLANDS ELSEWHERE WITH THE PROPER SAFEGUARDS I THINK MITIGATION BANKS CAN BE A GOOD THING SAID TIM SEARCHINGER A SENIOR ATTORNEY WITH THE ENVIRONMENTAL DEFENSE FUND THOUGH OTHER ENVIRONMENTALISTS OPPOSE THE METHOD 9308240082 930824 AMOCO GETS MEXICO ORDER CHICAGO AMOCO CORP'S AMOCO ENERGY TRADING CORP SAID IT RECEIVED A CONTRACT TO EXPORT ABOUT 35 MILLION CUBIC FEET OF GAS A DAY TO MEXICO'S PETROLEOS MEXICANOS THE STATEOWNED OIL COMPANY WITH THIS CONTRACT AND THE NATURAL GAS IT SELLS ON A SPOTMARKET BASIS AMOCO NOW PROVIDES MORE THAN 50 OF THE NATURAL GAS IMPORTED TO MEXICO THE CONTRACT HAS A TERM OF 14 MONTHS 9308240081 930824 BROOKLYN UNION PROPERTY SALE NEW YORK BROOKLYN UNION GAS CO SAID AN AFFILIATE AGREED TO SELL CERTAIN NATURALGAS PROPERTIES IN ALBERTA CANADA TO COENERCO RESOURCES LTD FOR 40 MILLION CANADIAN DOLLARS US303 MILLION 9308240080 930824 FORD OF EUROPE WARNS WORKERS OF MORE LAYOFFS DIVISION EXPECTING A LOSS IN '93 SAYS TURNAROUND IS VITAL FOR COMPETING BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL BONN CONFIRMING THAT IT EXPECTS A LOSS IN 1993 FOR THE THIRD CONSECUTIVE YEAR FORD OF EUROPE WARNED WORKERS THAT FURTHER JOB CUTS MAY BE NEEDED AND THAT FAILURE TO ACHIEVE A TURNAROUND SOON COULD UNDERMINE ITS ABILITY TO COMPETE ANALYSTS STILL EXPECT THE US PARENT COMPANY FORD MOTOR CO TO BE PROFITABLE FOR THE YEAR BUT THE GRIM COMMENTS FROM A TOP OFFICIAL UNDERSCORE THE HEAVY PRESSURE ON FORD'S EUROPEAN DIVISION SPEAKING IN AN ADDRESS CARRIED RECENTLY ON FORD'S INTERNAL BROADCASTING SERVICE JACQUES NASSER CHAIRMAN OF THE EUROPEAN OPERATION SAID FAILURE TO RETURN TO PROFIT SOON COULD FORCE THE COMPANY TO START CUTTING OUT THE MUSCLE OF THE ORGANIZATION AS WELL AS THE FAT IF THAT HAPPENS WE WILL HAVE BEEN FORCED TO LIMIT OUR CAPABILITY OF COMPETING FAILURE TO STANCH THE RED INK COULD INHIBIT FORD'S ABILITY TO RETOOL PLANTS AND DEVELOP NEW MODELS NEEDED TO COMPETE IN EUROPE'S INCREASINGLY TOUGH CAR MARKET LAST MONTH FORD SAID ITS EUROPEAN UNIT POSTED A 75 MILLION LOSS IN THE SECOND QUARTER COMPARED WITH A PROFIT OF 150 MILLION IN THE YEAREARLIER PERIOD FORD IS ALSO HAVING TROUBLE REVAMPING JAGUAR CARS LTD THE LUXURY SPORTS CAR DIVISION THE COMPANY BOUGHT IN 1989 JAGUAR WHICH ISN'T INCLUDED IN FORD OF EUROPE'S RESULTS POSTED A 60 MILLION LOSS IN THE SECOND QUARTER COMPARED WITH A 75 MILLION LOSS A YEAR AGO ALL THE BIG EUROPEAN CAR MAKERS ARE FIGHTING THE SAME SLUMP WHILE TRYING TO POSITION THEMSELVES TO SURVIVE THE SHAKEOUT THAT'S EXPECTED TO KNOCK OUT AT LEAST ONE OF EUROPE'S BIG SIX CAR MAKERS IN COMING YEARS MANY ANALYSTS CONSIDER FORD'S EUROPEAN OPERATIONS TO BE ONE OF THE WEAKEST PLAYERS MEANWHILE THE COMPANY IS CAUGHT IN AN EMBARRASSING ROW WITH ITS FORMER TOP EXECUTIVE IN GERMANY JOHN HARDIMAN WHO WAS BUMPED FROM HIS POST LAST WEEK MR HARDIMAN WHO HEADED FORD WERKE AG SINCE 1989 HAS HIRED A GERMAN LAWYER AND LET IT BE KNOWN THAT HE INTENDS TO FIGHT HIS REMOVAL MR HARDIMAN HASN'T FILED LEGAL ACTION AGAINST HIS EMPLOYER HOWEVER AND FLEW TO DETROIT THIS WEEK FOR DISCUSSIONS WITH FORD MANAGEMENT THOSE FAMILIAR WITH THE DISPUTE SAY MR HARDIMAN 59 YEARS OLD IS PUSHING FOR A MORE FAVORABLE FINANCIAL SETTLEMENT THIS IS A POKER GAME OVER FINANCIAL DETAILS SAID ONE COMPANY SOURCE MR HARDIMAN IS THOUGHT TO HAVE BALKED AT THE MANNER IN WHICH HE WAS REMOVED FROM HIS POST HIS ATTORNEY ULRICH WEBER SAID LAST WEEK THAT THE LONGTIME FORD EXECUTIVE LEARNED OF HIS IMPENDING REMOVAL BY WAY OF GERMAN NEWSPAPER REPORTS A SPOKESWOMAN FOR FORD IN DETROIT SAID THE COMPANY IS HOPEFUL A FRIENDLY SETTLEMENT WILL BE REACHED THE US CAR MAKER HAS OFFERED MR HARDIMAN AN UNSPECIFIED POSITION AT FORD'S US HEADQUARTERS INSISTING THAT HIS REMOVAL FROM THE JOB IN GERMANY IS PART OF NORMAL JOB ROTATION JACQUELINE MITCHELL IN DETROIT CONTRIBUTED TO THIS ARTICLE 9308240079 930824 ABREAST OF THE MARKET INDUSTRIALS DECLINE 950 TO 360598 AS INVESTORS SELL CONSUMER ISSUES BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE STOCK RALLY COOLED AS INVESTORS SOLD THE CONSUMER STOCKS THEY SO EAGERLY EMBRACED A WEEK AGO THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 950 POINTS TO 360598 IN LACKLUSTER TRADING STANDARD & POOR'S 500STOCK INDEX FELL 093 TO 45523 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LOST 034 TO 25291 HEALTHCARE STOCKS WERE AMONG THE BIGGEST LOSERS MERCK ONE OF THE MOST ACTIVE STOCKS ON THE BIG BOARD LOST 1/4 TO 32 1/2 SCHERINGPLOUGH FELL 1 1/4 TO 61 1/2 PFIZER SANK 1 1/4 TO 62 BRISTOLMYERS SQUIBB SAGGED 7/8 TO 55 1/2 UNITED HEALTHCARE DROPPED 2 5/8 TO 57 1/2 AND HMO AMERICA LOST 1 1/8 TO 37 DESPITE YESTERDAY'S LOSSES STOCK ANALYSTS SAID THEY THINK THE MARKET IS STILL POISED TO MOVE HIGHER I WOULD CLASSIFY THIS MARKET AS FAIRLY IMPRESSIVE SAID JACK BAKER MANAGING DIRECTOR FOR STOCK TRADING AT FURMAN SELZ THERE WAS EVERY OPPORTUNITY FOR INVESTORS TO SELL STOCKS SHARPLY BUT BUYERS CAME BACK LATE IN THE DAY MR BAKER SAID THAT AS LONG AS THERE IS NO GLITCH IN THE BOND MARKET STOCKS PROBABLY WILL CONTINUE TO MOVE TO RECORDS YESTERDAY THE TREASURY'S 30YEAR BOND FELL 1/8 POINT OR 125 FOR EACH 1000 FACE AMOUNT AND THE YIELD EDGED UP TO 622 FROM 621 WILLIAM DODGE CHAIRMAN OF THE INVESTMENT POLICY COMMITTEE AT DEAN WITTER REYNOLDS SAID HE TOO EXPECTS FURTHER GAINS IN STOCK PRICES AND THINKS THAT THE DOW JONES INDUSTRIALS WILL CATAPULT AS HIGH AS 3700 IN THE COMING WEEKS I DON'T THINK WE ARE FINISHED WITH THE SUMMER RALLY YET MR DODGE SAID HOWEVER HE SAID THAT STOCKS COULD FACE A SETBACK IN THE FALL A SEASONALLY WEAK PERIOD ONE OF THE KEYS TO THE PERFORMANCE OF THE MARKET WILL BE THE FLOW OF CASH INTO MUTUAL FUNDS HE SAID IF CASH CONTINUES TO FLOOD INTO MUTUAL FUNDS AT THE RECENT TORRID PACE THEN THE CORRECTION IN STOCK PRICES MAY BE TEMPERED HE SAID VOLUME ON THE BIG BOARD DWINDLED TO 210187010 SHARES FROM 274633820 SHARES FRIDAY DECLINING ISSUES OUTNUMBERED ADVANCERS 1032 TO 935 CASINO STOCKS WERE ALSO HOT PROMUS SURGED 2 1/2 TO 67 5/8 INTERNATIONAL GAME TECHNOLOGY RALLIED 1 1/2 TO 36 1/4 CIRCUS CIRCUS ENTERPRISES ADVANCED 1 5/8 TO 42 3/4 AND CAESARS WORLD EDGED UP 5/8 TO 46 1/8 MICHIGAN GOV JOHN ENGLER SIGNED AN AGREEMENT WITH INDIAN LEADERS ALLOWING SEVEN TRIBES TO CONTINUE TO OPERATE CASINOS IN THAT STATE IPALCO ENTERPRISES LEAPT 1 1/4 TO 37 1/2 IPALCO'S CHIEF EXECUTIVE OFFICER JOHN R HODOWAL SAID THE COMPANY WILL END ITS FIVEMONTH BATTLE TO ACQUIRE PSI RESOURCES PSI LOST 1/8 TO 25 CINCINNATI GAS & ELECTRIC WHICH HAS BEEN SEEKING A FRIENDLY PURCHASE OF PSI FELL 5/8 TO 27 1/2 RAMSAYHMO ADDED 3/8 TO 27 1/2 THE COMPANY WHICH OPERATES MEDICAL SERVICE CENTERS SAID FOURTHQUARTER PROFITS SWELLED TO 47 CENTS A SHARE FROM 37 CENTS A SHARE A YEAR AGO ST JOE PAPER SOARED 3 7/8 TO 49 7/8 A MONEY MANAGER IN YESTERDAY'S HEARD ON THE STREET COLUMN NOTED THAT THE STOCK IS CHEAP TANDYCRAFTS SLUMPED 2 3/8 TO 15 1/4 THE LEATHER CRAFTS CONCERN SAID FOURTHQUARTER PROFIT GREW TO 19 CENTS A SHARE FROM 18 CENTS A SHARE A YEAR AGO LAST YEAR'S EARNINGS INCLUDED A SPECIAL GAIN OF 600000 OR FOUR CENTS A SHARE CURTISSWRIGHT SLIPPED 7/8 TO 34 3/8 THE COMPANY SAID IT IS NO LONGER NEGOTIATING THE SALE OF ITS METAL IMPROVEMENT UNIT WITH A SINGLE PROSPECTIVE BUYER BUT IS STILL SEEKING TO SELL THE UNIT AMERON SLID 7/8 TO 36 1/4 THE MAKER OF CONCRETE AND STEEL PIPES SAID IT EXPECTS TO TAKE A SUBSTANTIAL FOURTHQUARTER CHARGE TO RESTRUCTURE OPERATIONS BEVERLY ENTERPRISES EASED 1/4 TO 10 3/8 SALOMON BROTHERS DOWNGRADED ITS INVESTMENT RATING ON THE HEALTHCARE CONCERN TO HOLD FROM BUY THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX FELL 019 TO 44851 THERE WERE 323 DECLINERS AND 257 ADVANCERS 9308240078 930824 MERRILL LYNCH PLANS TO REENTER UK BOND MARKET BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MERRILL LYNCH & CO AFTER PULLING OUT OF UNITED KINGDOM GOVERNMENT BONDS IN 1989 AMID RED INK PLANS TO REENTER THE GILT MARKET MERRILL THE BIGGEST BROKERAGE FIRM IN THE US WILL APPLY TO THE BANK OF ENGLAND WITHIN THE NEXT FEW WEEKS TO BECOME A MARKETMAKER IN GILTS OR BRITISH GOVERNMENT BONDS MERRILL OFFICIALS SAY THE MOVE WOULD MAKE MERRILL AMONG THE FIRST US SECURITIES FIRMS TO REENTER THE GILT MARKET AFTER TRADING LOSSES FORCED SEVERAL BIG AMERICAN INVESTMENT BANKS TO FLEE THAT MARKET IN THE LATE 1980S MERRILL HAD A LOSS TOTALING 552 MILLION DURING THE THREE YEARS BEFORE CLOSING ITS GILT MARKETMAKING OPERATIONS IN 1989 MERRILL GOT BURNED WHEN IT RUSHED IN TO GILTS AFTER BRITAIN'S BIG BANG SECURITIES DEREGULATION IN 1986 SAYS WILLIAM HARTMAN A BROKERAGE ANALYST FOR JP MORGAN SECURITIES INC NOW THEY'RE TRYING TO DO THINGS IN A MORE SOBER WAY MR HARTMAN SAYS IT MAKES SENSE FOR MERRILL TO REENTER THE UK GOVERNMENT BOND MARKET AND REFLECTS THE FIRM'S STRATEGIC PUSH TO GENERATE 25 OF REVENUE FROM OFFSHORE BUSINESSES MERRILL'S APPLICATION TO REENTER THE GILT MARKET REPORTED IN THE FINANCIAL TIMES IS LIKELY TO BE GRANTED PEOPLE FAMILIAR WITH THE MATTER SAY THE MOVE BY MERRILL COMES AMID A REBOUND IN THE UK GOVERNMENT BOND MARKET DURING THE PAST TWO YEARS WHICH HAS BUOYED THE PROFITS OF MANY GILT MARKETMAKERS MERRILL'S PLANS FOLLOW THE RECENT HIRING OF STEPHEN RUMSEY FROM BARCLAYS DE ZOETE WEDD SECURITIES TO DEVELOP MERRILL'S STERLING FIXEDINCOME BUSINESS OTHER BIG US INVESTMENT BANKS AREN'T LIKELY TO RUSH BACK INTO GILTS ANALYSTS SAY AMONG US SECURITIES FIRMS SALOMON INC'S SALOMON BROTHERS INC UNIT HAS THE STRONGEST GILT PRESENCE UNLIKE MANY OTHER US FIRMS SALOMON GRADUALLY WADED INTO THE GILT BUSINESS INSTEAD OF JUMPING IN AND GOBBLING UP UK GILT FIRMS MERRILL ORIGINALLY ENTERED THE GILT BUSINESS IN 1985 WHEN IT BOUGHT A 30 INTEREST IN GILES & CRESSWELL A BRITISH BROKERAGE FIRM IN A BID TO TAKE ADVANTAGE OF THE SECURITIES DEREGULATION MERRILL ACQUIRED ALL OF GILES & CRESSWELL IN EARLY 1986 SOME ANALYSTS EXPECT MERRILL TO DO BETTER THIS TIME AROUND IN THE PAST COUPLE OF YEARS MERRILL HAS DEMONSTRATED SOME REAL DISCIPLINE IN THEIR BUSINESSES SAYS LAWRENCE ECKENFELDER A BROKERAGE ANALYST AT PRUDENTIAL SECURITIES INC 9308240076 930824 LIPOSOME TECHNOLOGY APPROVAL LIPOSOME TECHNOLOGY INC SAID IT HAS RECEIVED APPROVAL FROM THE UNITED KINGDOM TO MARKET AND DISTRIBUTE ITS AMPHOCIL PRODUCT FOR TREATMENT OF LIFETHREATENING FUNGAL INFECTIONS THE APPROVAL IS THE FIRST FOR A PRODUCT OF THE MENLO PARK CALIF PHARMACEUTICAL CONCERN THE COMPANY SAID IT IS CONDUCTING PHASE III CLINICAL TRIALS ON AMPHOCIL IN THE US 9308240075 930824 INTERNATIONAL BANK OF FRANCE ENDS RATE ON EMERGENCY CREDIT LINE SPECIAL TO THE WALL STREET JOURNAL PARIS THE BANK OF FRANCE MOVED GINGERLY TOWARD NORMALCY ON INTEREST RATES FIRST CUTTING AND THEN ELIMINATING THE RATE ON AN EMERGENCY 24HOUR LENDING FACILITY THE CENTRAL BANK HAD BEGUN OFFERING THE RATE TO COMMERCIAL BANKS DURING THE CURRENCY CRISIS THE 24HOUR OPERATIONS HAD HELPED IT CONSTRAIN PLAYERS WHO WANTED TO BORROW FRANCS FROM THE CENTRAL BANK CHEAPLY TO USE TO SPECULATE AGAINST THE CURRENCY ECONOMISTS AND FOREIGNEXCHANGE TRADERS SAID IT LOOKS LIKE THE BANK OF FRANCE IS TAKING THE FINAL STEPS TO NORMALIZE ITS KEY INTERESTRATE STRUCTURE KNOCKED OUT OF KILTER IN THE EFFORT TO DEFEND THE FRANC BEFORE IT CAN BEGIN TO CUT RATES THE OVERNIGHT RATE ISN'T A STANDARD WAY OF LENDING SAID BOB TYLEY HEAD OF BOND ANALYSIS AT PARIBAS CAPITAL MARKETS LTD IN LONDON REMOVING AN EMERGENCY FACILITY MEANS IT ISN'T AN EMERGENCY ANY MORE BUT ANALYSTS WERE CAUTIOUS ABOUT PREDICTING A TIME FRAME FOR NEW MOVES SOME SEE A DROP BY TODAY IN THE HIGHER OF THE CENTRAL BANK'S TWO KEY RATES THE FIVETO 10DAY SECURITIES REPURCHASE RATE STILL AT 10 OTHERS SAY THE REDUCTION COULD BE DELAYED UNTIL SEPTEMBER 9308240073 930824 GM DISCOVERS THE NUMBER OF PICKUPS COVERED BY SETTLEMENT EXCEEDS ESTIMATE BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT AS GENERAL MOTORS CORP BEGINS CONTACTING OWNERS OF ITS PICKUPS WITH SIDEMOUNTED GASOLINE TANKS IT DISCOVERED THAT ROUGHLY SIX MILLION OF THE TRUCKS ARE ON THE ROAD NOT 47 MILLION AS PREVIOUSLY ESTIMATED WHILE THAT MEANS GM WILL BE PASSING OUT POTENTIALLY 13 BILLION MORE IN DISCOUNT COUPONS THAN WAS EARLIER THOUGHT IT DOESN'T NECESSARILY MAGNIFY HE LIKELY IMPACT ON THE AUTO MAKER'S BOTTOM LINE THAT'S BECAUSE THE VALUE OF THE COUPONS IS CONSISTENT WITH NORMAL MARKETING OUTLAYS AND THE COUPONS ARE GENERALLY EXPECTED TO BENEFIT GM BY BOOSTING TRUCK SALES ON FRIDAY AFTER COMPILING WHAT THE AUTO MAKER DESCRIBED AS ITS FIRST LIST OF OWNERS OF REGISTERED PICKUP TRUCKS WITH SIDEMOUNTED GASOLINE TANKS GM BEGAN MAILING THEM SUMMARIES OF A CLASS ACTION SETTLEMENT ENTITLING EACH OWNER TO A 1000 DISCOUNT ON A NEW VEHICLE THE SETTLEMENT GREW OUT OF MORE THAN 30 SEPARATE CLASS ACTION SUITS WHICH CHARGED THAT THE TRUCKS WERE TOO VULNERABLE TO FIERY EXPLOSIONS WHEN BROADSIDED BECAUSE OF THE POSITION OF THE GAS TANKS GM SAID THAT UNTIL NOW IT HAD NEVER COUNTED HOW MANY OF THE NEARLY 10 MILLION SUCH TRUCKS IT BUILT ARE STILL ON THE ROAD THE PREVIOUS ESTIMATE OF 47 MILLION TRUCKS WAS MADE BY CRITICS OF THE TRUCKS' SAFETY WITHOUT ANY OBJECTIONS FROM GM THE TRUCKS INVOLVED ARE 19731987 FULLSIZED PICKUPS AND CHASSIS CAB TRUCKS AND ABOUT 200000 CHASSIS CAB TRUCKS BUILT UP UNTIL 1991 CHASSIS CAB TRUCKS ARE SOLD WITHOUT A PICKUP BED TO MANUFACTURERS WHO THEN MAKE THEM INTO TOWTRUCKS CAMPERS OR SMALL FREIGHT TRUCKS UNDER THE SETTLEMENT OWNERS OF THE TRUCKS WITH SIDEMOUNTED GASOLINE TANKS WILL RECEIVE A COUPON GOOD FOR 15 MONTHS TOWARD THE PURCHASE OF A NEW GM TRUCK GM WHICH MAKES SUBSTANTIALLY MORE THAN 1000 PROFIT ON ALMOST EVERY TRUCK MODEL SAID THE COUPON WON'T HURT ITS EARNINGS INDEED SOME ANALYSTS HAVE SAID THAT THE PROGRAM COULD ACTUALLY BOOST GM'S PROFITS IF IT INCREASES TRUCK SALES CONSUMER REACTION TO THE SETTLEMENT HAS BEEN OVERWHELMINGLY POSITIVE SAID ELIZABETH CABRASER ONE OF THE LEAD ATTORNEYS REPRESENTING TRUCK OWNERS IN THE CLASS ACTION CASE BUT SOME CONSUMERS SAY THE SETTLEMENT OFFERS LITTLE TO OWNERS WHO CAN'T AFFORD A NEW TRUCK IT'S WASTED MY SON DRIVES AN '85 PICKUP BECAUSE HE CAN'T AFFORD A NEW TRUCK EVEN WITH 1000 OFF SAID CHARLIE ROSEN OF LONG ISLAND NY TWO CONSUMER GROUPS AND AT LEAST ONE ATTORNEY SEEKING TO REPRESENT TRUCK OWNERS IN GEORGIA SAID THEY WILL OBJECT TO THE SETTLEMENT NO SETTLEMENT HAS BEEN REACHED REGARDING ATTORNEYS' FEES ATTORNEYS REPRESENTING THE TRUCK OWNERS ARE TO FILE FOR ATTORNEY FEES SEPT 15 TRUCK OWNERS HAVE UNTIL OCT 5 TO OPT OUT OF THE SETTLEMENT IN ADDITION TO THE MAILING GM IS NOTIFYING TRUCK OWNERS OF THE SETTLEMENT THROUGH AN ADVERTISEMENT TO RUN IN USA TODAY FRIDAY 9308240072 930824 PEPPERAND SALT ARCHAIC OR WORSE SIMPLY MEANT RIPPED OFF BUT AT FOSSIL I DRAW THE LINE 9308240071 930824 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION HORIZON HEALTHCARE CORP AN OFFERING OF FIVE MILLION COMMON SHARES VIA A GROUP LED BY MERRILL LYNCH & CO ILLINOIS SUPERCONDUCTOR CORP AN INITIAL OFFERING OF 12 MILLION COMMON SHARES VIA GRUNTAL & CO A PEA IN THE POD INC AN INITIAL OFFERING OF 1560000 COMMON SHARES VIA ROBERTSON STEPHENS & CO TRANS FINANCIAL BANCORP AN OFFERING OF UP TO 345 MILLION OF 10YEAR SUBORDINATED NOTES U S WEST CAPITAL FUNDING CORP A UNIT OF U S WEST INC A SHELF OFFERING OF UP TO 800 MILLION OF DEBT SECURITIES VIA MERRILL LYNCH & CO AND LEHMAN BROTHERS 9308240070 930824 MARKETING & MEDIA MARKETSCAN BUG BOOM IS BOON TO INSECTICIDE MAKERS BY JAMISON S PRIME THIS SUMMER IS DRIVING AMERICANS BUGGY BUT WHAT HAS MANY FOLKS ITCHING SCRATCHING OR FLEEING IN TERROR IS A BOON TO INSECTICIDE MAKERS THE 500 MILLIONPLUS MARKET FOR SPRAYS FOGGERS BAITS AND TRAPS IS EXPERIENCING BRISK SUMMER SALES AFTER A SPRING SEASON THAT WAS AS FLAT AS A SQUASHED BUG MISSING OUT ON THE BUG BOOM RECKITT & COLMAN PLC'S BLACK FLAG LINE SALES OF THE NO 3 INSECTICIDE DECLINED 18 DURING THE PERIOD ACCORDING TO INFORMATION RESOURCES THE COMPANY DIDN'T RESPOND TO REQUESTS SEEKING COMMENT WET WARM CONDITIONS ARE NURTURING AN INSECT EXPLOSION ENTOMOLOGISTS SAY AND VARIOUS SECTIONS OF THE COUNTRY ARE FEELING THE BITE OF VARIOUS PESTS THE TORRENTIAL MIDWEST RAINS ARE CREATING NEW BREEDING GROUNDS STANDING WATER FOR LEGIONS OF MOSQUITOES AND LURING DESTRUCTIVE CARPENTER ANTS INDOORS WHICH USUALLY BURROW THROUGH THE WOODWORK FLOODING IS DRIVING GIGANTIC SEWER ROACHES TO HIGHER GROUND ELSEWHERE UNUSUAL PRECIPITATION IN THE DESERT SOUTHWEST HAS LED TO HIGHERTHANUSUAL NUMBERS OF SPIDERS COCKROACHES AND SCORPIONS RECORD HEAT AND HUMIDITY IN THE SOUTHEAST EARLIER THIS SUMMER ENCOURAGED BUG BREEDING AND ALONG THE EAST COAST HOMEOWNERS ARE REPORTING LARGE NUMBERS OF MILLIPEDES CENTIPEDES AND BASEMENTLOVING SOW BUGS IN GENERAL THE CREEPY CRAWLERS ARE DOING GREAT SAYS DR GARY BENNETT AN ENTOMOLOGY PROFESSOR AT PURDUE UNIVERSITY CALLS TO ANDERSON PEST CONTROL A SUBURBAN CHICAGO EXTERMINATOR ARE UP 10 TO 15 FROM LAST YEAR ESTIMATES DAVID SHANGLE DIRECTOR OF TECHNICAL SERVICES THE SUMMER'S INSECT POPULATIONS ARE IMPRESSIVE HE SAYS AND HE HAS SEEN AN ACROSSTHEBOARD INCREASE IN ALL TYPES AT THE ELKHART COUNTY IND AGRICULTURE EXTENSION OFFICE DIRECTOR PHIL GORDON SAYS PEOPLE HAVE BROUGHT IN BUCKETS OF BUGS FROM SHIMMERING GREENANDBROWN JAPANESE BEETLES TO PINCERED EARWIGS A FEW INSECTS HE SAYS WE COULDN'T IDENTIFY A SPOKESMAN FOR TARGET STORES A DIVISION OF MINNEAPOLISBASED DAYTON HUDSON CORP SAYS THE DISCOUNTER SAW AN INCREDIBLE UPSWING IN INSECTICIDE SALES BEGIN IN EARLY JULY AND IS EXPECTING PRETTY STRONG OVERALL INSECTICIDE SALES THIS YEAR WHILE CONSUMERS GRAB FOR INSECTICIDES MANUFACTURERS ARE TRYING TO SNARE MARKET SHARE BY INTRODUCING NEW AND PREMIUM PRODUCTS EARLIER THIS YEAR RACINE WISBASED SC JOHNSON & SON INC EXTENDED ITS MAINSTAY RAID BRAND WITH A COUNTRY FRESH SCENT TO CAPITALIZE ON THE POPULARITY OF POTPOURRI FRAGRANCES FOR SEVERE INFESTATIONS JOHNSON PITCHES RAID MAX THAT BRAND EXTENSION INTRODUCED IN THE MID1980S COMES IN SHINY SILVER PACKAGING AND SELLS FOR SEVERAL DOLLARS MORE THAN THE TRADITIONAL RAID LINE CLOROX IS HOPING THE PUBLIC AS WELL AS COCKROACHES WILL DEVOUR ITS COMBAT SUPERBAIT LAUNCHED THIS YEAR THE BAITS ARE DESIGNED TO ATTRACT COCKROACHES TO AN INSECTICIDELADEN FOOD SOURCE THE OAKLAND CALIF COMPANY SAYS AFTER RETURNING TO THEIR NEST THE CONTAMINATED COCKROACHES THEN POISON OTHER MEMBERS OF THE COLONY THROUGH THEIR DROPPINGS AND WHEN THEY ARE EATEN AFTER THEY DIE BENGAL CHEMICAL A RELATIVE NEWCOMER TO THE BUGKILLING FIELD SAYS ITS LINE IS MARKETED PRIMARILY IN THE SOUTHEAST AS PREMIUM SPRAYS THAT CONTAIN HEAVY CONCENTRATIONS OF ACTIVE INGREDIENTS ALTHOUGH A CAN OF BENGAL ROACH SPRAY MAY COST TWICE AS MUCH AS A CAN OF RAID OR COMBAT BENGAL CLAIMS CONSUMERS ARE WILLING TO PAY MORE IF THEY DEEM THE PRODUCT EFFECTIVE SOME PEOPLE OUT THERE THEY'LL DO ANYTHING TO KILL THE ROACHES SAYS MR LEBLANC THE MARKETING DIRECTOR THE COST IT DOESN'T REALLY MATTER SOME CONSUMERS DO SEE EXPENSIVE BRANDS AS MORE EFFECTIVE BUT THEY OFTEN LIKE TO START OFF AT THE CHEAPER END OF THE BUGSPRAY SPECTRUM ANDREJ SEMRL A PARTTIME FACULTY MEMBER AT CHICAGO'S DEPAUL UNIVERSITY WAS SHOPPING AT A WOOLWORTH'S STORE IN EARLY JULY FOR INSECTICIDES AFTER SCANNING THE SHELF HE SELECTED A 259 CAN OF COMBAT ANT & ROACH SPRAY IF THIS MODERATELY PRICED PRODUCT DOESN'T WORK ON THE PESTS IN HIS NEW APARTMENT MR SEMRL SAYS HE'LL BUY MORE AND MORE EXPENSIVE ONES UNTIL I FIND ONE THAT WORKS BUT HIGHER PRICE MAY NOT MEAN MORE POTENT INGREDIENTS THE SAME ACTIVE INGREDIENTS ARE USED BY EVERYONE SAYS ROBERT METCALF PROFESSOR EMERITUS OF ENTOMOLOGY AND ENVIRONMENTAL STUDIES AT THE UNIVERSITY OF ILLINOIS IT'S A LOT LIKE GASOLINE HE SAYS EVERYONE HAS THEIR OWN FORMULATIONS BUT IT'S PRETTY MUCH THE SAME NOT SO CONTENDS SC JOHNSON WHILE MANY BRANDS SHARE THE SAME ACTIVE INGREDIENTS DIFFERENCES IN FORMULAS AND HOW THE CAN DISPENSES THE PRODUCT CAN AFFECT A PESTICIDE'S PUNCH SAYS A SPOKESMAN 9308240069 930824 CREDIT RATINGS AVNET INC GREAT NECK NY STANDARD & POOR'S CORP SAID IT LOWERED ITS RATINGS ON 105 MILLION OF THIS ELECTRONIC COMPONENT DISTRIBUTOR'S SUBORDINATED DEBT TO SINGLEAMINUS FROM SINGLEAPLUS THE ISSUE WAS REMOVED FROM S&P'S CREDITWATCH LIST WHERE IT WAS PLACED AFTER AVNET SAID IT WOULD ACQUIRE HALLMARK ELECTRONICS CORP DALLAS FOR ABOUT 485 MILLION S&P SAID REVENUES FOR THE TWO COMPANIES WILL APPROACH 3 BILLION AND BOTH COMPANIES BENEFIT FROM STRONG INDUSTRY POSITIONS AS WELL AS GEOGRAPHIC AND PRODUCT DIVERSITY BUT IT NOTED THAT CASH LEVELS ARE EXPECTED TO DECLINE WHILE DEBT LEVERAGE WILL INCREASE BECAUSE OF THE ACQUISITION 9308240068 930824 IBM PLANS TO CLONE INTEL MICROPROCESSORS IN BID TO RECAPTURE BULK OF PC BUSINESS BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL IN AN UNUSUALLY AGGRESSIVE BID TO WIN BACK DOMINANCE OF THE PERSONALCOMPUTER BUSINESS INTERNATIONAL BUSINESS MACHINES CORP IS PLANNING A RISKY EFFORT TO CLONE INTEL CORP MICROPROCESSORS THAT HOG A HUGE SHARE OF THE PC MARKET'S PROFITS THE MOVE WOULD ESCALATE IBM'S MOUNTING WARFARE AGAINST INTEL WHICH TURNED MICROPROCESSORS INTO ONE OF THE WORLD'S MOST PROFITABLE BUSINESSES WHILE IBM PLUNGED INTO CRISIS REPORTS OF IBM'S PLANS SENT INTEL STOCK FALLING EARLY YESTERDAY IN HEAVY VOLUME ON THE OVERTHECOUNTER MARKET THE STOCK CLOSED AT 6425 UP 50 CENTS ON VOLUME OF ALMOST 45 MILLION SHARES IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE IBM COMMON CLOSED AT 44375 UP 125 ON VOLUME OF 26 MILLION SHARES SEPARATELY FROM THE NEW PLAN IBM ALSO IS TEAMING UP WITH MOTOROLA INC AND APPLE COMPUTER INC TO DESIGN A NEW LINE OF MICROPROCESSORS DUBBED POWERPC TO COMPETE AGAINST INTEL CURRENTLY IBM HAS THE RIGHTS TO MAKE MICROPROCESSORS USING INTEL'S DESIGNS BUT IBM IS LIMITED IN THE QUANTITIES OF INTELDESIGN CHIPS IT CAN MAKE AND IT CAN'T SELL THEM UNLESS IT PACKS THEM INTO OTHER PRODUCTS TAKING ON INTEL WITH CLONES WOULD POSE DAUNTING LEGAL PROBLEMS FOR IBM TO AVOID VIOLATING INTEL'S COPYRIGHTS AND PATENTS IT WOULD HAVE TO COME UP WITH AN ENTIRELY NEW DESIGN FOR CHIPS THAT PERFORM THE SAME FUNCTION AS THE INTEL MICROPROCESSORS FOR ITS PART INTEL IS FEROCIOUSLY LITIGIOUS ABOUT PROTECTING ITS INTELLECTUAL PROPERTY IT HAS SPENT MILLIONS TO DEFEND ITS DESIGNS IN LAWSUITS AGAINST ADVANCED MICRO DEVICES INC CYRIX CORP AND OTHERS IBM WOULDN'T COMMENT ON REPORTS THAT IT PLANS TO CLONE THE INTEL CHIPS FIRST REPORTED YESTERDAY BY REUTER NEWS SERVICE BUT INDUSTRY OFFICIALS CONFIRMED THAT THE ARMONK NY COMPUTER GIANT IS PURSUING THE PLANS A SPOKESWOMAN FOR INTEL BASED IN SANTA CLARA CALIFDECLINED TO COMMENT INTEL'S SUCCESS IN MICROPROCESSORS HAS BEEN GALLING FOR BELEAGUERED IBM THE WORLD'S BIGGEST CHIP COMPANY STAFFED WITH NOBELLAUREATE SCIENTISTS IN CUTTINGEDGE LABS AROUND THE WORLD YET IBM LAUNCHED INTEL'S JUGGERNAUT BY TAPPING IT TO SUPPLY THE BRAINS OF THE ORIGINAL IBM PC A DECADE AGO IBM'S NEW ATTACK ON INTEL FURTHER COMPLICATES ONE OF HIGH TECHNOLOGY'S MOST TANGLED RELATIONSHIPS INTEL IS ONE OF IBM'S CHIEF SUPPLIERS THE TWO COMPANIES ALSO COLLABORATE ON MICROCHIP RESEARCH OUR RELATIONSHIPS INCLUDE CUSTOMER SUPPLIER PARTNER COMPETITOR WE HAVE MANAGED ALL THOSE RELATIONSHIPS VERY SUCCESSFULLY AND I THINK THAT'S UNIQUE IN THE INDUSTRY AN IBM SPOKESMAN SAID DETAILS WEREN'T YET CLEAR AS TO WHEN IBM'S INTEL CLONES MIGHT HIT THE MARKET IT ALSO WASN'T CLEAR HOW IBM WOULD MANAGE TO SELL INTEL CLONES ALONGSIDE THE PLANNED POWERPC CHIPS TWO PRODUCT LINES THAT PRESUMABLY WOULD COMPETE WITH EACH OTHER UNTIL RECENTLY IBM'S MASSIVE PRODUCTION OF MICROCHIPS WAS ALMOST EXCLUSIVELY FOR ITS OWN COMPUTERS DURING THE PAST YEAR IT HAS STEPPED UP EFFORTS TO SELL CHIPS TO OTHER COMPANIES A PUSH THAT ITS NEW CHAIRMAN LOUIS V GERSTNER HAS ACCELERATED IBM WOULDN'T DISCUSS THE DETAILS OF ITS CURRENT CHIP ARRANGEMENTS WITH INTEL BUT AN INDUSTRY OFFICIAL SAID THE CONTRACTS SEVERELY HAMSTRING IBM'S ABILITY TO COMPETE WITH INTEL THE AGREEMENTS STRICTLY LIMIT THE NUMBER OF INTELDESIGN CHIPS IBM CAN PRODUCE FOR ITSELF AND OTHERS EXPRESSED AS A PERCENTAGE OF IBM'S TOTAL MICROPROCESSOR REQUIREMENTS MOREOVER IBM CAN'T SELL INTELDESIGN CHIPS TO OTHER COMPANIES UNLESS IT PACKAGES THEM IN BOARDS OR OTHER PRODUCTS ANOTHER COMPETITIVE HITCH INTEL HAS SPECIAL RIGHTS TO USE ANY MODIFICATIONS IBM MAKES IN THE INTEL DESIGNS IBM HAS PRODUCED SOME INNOVATIVE VARIATIONS ON INTEL'S CHIPS SAID MICHAEL SLATER EDITOR OF MICROPROCESSOR REPORT A NEWSLETTER IBM COULD STEP IN THERE AND GET NOTICEABLE VOLUME IF THEY COULD SELL THE CHIPS HE SAID AND DESPITE INTEL'S DOMINANCE IN THE MARKET ITS PROFIT MARGINS ON ITS CHIPS LEAVE ROOM FOR MORE PLAYERS MR SLATER ADDED INTEL SELLS SOME VERSIONS OF ITS 486 CHIPS AT ABOUT 10 TIMES THE COST OF MAKING THEM HE SAID THE MARGINS ARE SO HIGH THAT YOUR COSTS CAN BE DRAMATICALLY HIGHER THAN INTEL'S AND YOU CAN STILL SELL AT COMPETITIVE PRICES WITH ACCEPTABLE PROFIT MARGINS HE SAID STILL WHILE THE ENTRY ON THE MARKET OF AN IBM VERSION OF INTEL'S CHIP COULD PUSH CHIP PRICES DOWN EVENTUALLY MR SLATER ADDED I SUSPECT IT'S QUITE A BIT AWAY FROM BEING A PRODUCT STEPHEN KREIDER YODER IN SAN FRANCISCO CONTRIBUTED TO THIS ARTICLE 9308240067 930824 BUSINESS WORLD SPOTLIGHT ON AN ANTINAFTA ALLIANCE BY TIM W FERGUSON A MINIRALLY AGAINST FREE TRADE LAST WEDNESDAY AT THE BUSIEST COMMERCIAL HARBOR IN THE US OBVIOUSLY HAD ELEMENTS OF CONTRAST THESE INCLUDED THE COMICAL AND PORTENTOUS I WAS ATTRACTED BECAUSE THE EVENT WAS COORDINATED BY FRESHMAN DEMOCRATIC REP JANE HARMAN WHOSE DISTRICT IS THE COASTAL COMMUNITIES FROM THE PORT OF LOS ANGELES WHERE THIS ANTINAFTA EVENT WAS STAGED NORTH TO VENICE NOT ONLY IS SHE MY CONGRESSWOMAN BUT SHE MAY BE INDICATIVE OF CALIFORNIA'S DELEGATION IF THE TRADE AGREEMENT WITH MEXICO AND CANADA LOSES IN THE HOUSE THIS FALL THE RESPONSIBILITY COULD LIE WITH A STATE THAT OUGHT TO BE A BIG BOOSTER IN SOME WAYS REP HARMAN'S OPPOSITION IS NOT SURPRISING SHE IS A LIBERAL THOUGH NOT AVOWED IN A MAJORITY GOP DISTRICT SO THE LABOR UNIONS AND ENVIRONMENTAL ZEALOTS THAT HATE NAFTA ARE HER NATURAL ALLIES AND SHE TELEGRAPHED HER STANCE IN LAST FALL'S CAMPAIGN BUT SHE AS MUCH AS ANY MEMBER OF CONGRESS HAS TO STRADDLE THE MIDDLECLASS DIVIDE BETWEEN OPPORTUNITY AND ANXIETY HER AEROSPACEHEAVY DOMAIN HAS EXPENSIVE HOMES WITH FALLING PRICES SHE GOT ELECTED BECAUSE MOST VOTERS WERE UNHAPPY ABOUT THE WAY THEIR WORLD HAD TURNED BY 1992 AND BECAUSE HER STAND FOR ABORTION RIGHTS AT LEAST PROMISED TO SPARE THEM A SOCIAL NETTLE ALSO SHE SPENT 23 MILLION REP HARMAN IS IN JEOPARDY BECAUSE THE ONUS IN 1994 WILL BE ON DEMOCRATS AND SHE CAST A PIVOTAL VOTE FOR THE CLINTON TAX INCREASES SOME LOST SOULS FROM ROSS PEROT'S UNITED WE STAND WHO WERE AMONG THE 150 PEOPLE AT LAST WEEK'S TRADE RALLY FAULTED HER ON THE BUDGET EVEN AS THEY APPLAUDED HER PROTECTIONISM THE JARRING ALLIANCES AT THE EVENT WERE IN PART A COMEDY AN UNEMPLOYED PEROT SYMPATHIZER PASSED OUT THE SPECIAL NAFTA ISSUE OF THE SPOTLIGHT PUBLISHED BY THE PARANOID LIBERTY LOBBY ANOTHER ROSS BACKER WHO WORKS FOR FEDERAL EXPRESS WHICH HE ACKNOWLEDGED SHOULD PROSPER FROM EXPANDED TRADE WITH MEXICO TOLD ME HE OPPOSES THE TREATY BECAUSE IT IS A STEP TOWARD ONE WORLD UNDER THE TRILATERAL COMMISSION YET A THIRD WAS TOTING ONE OF THE AFLCIO'S DON'T SEND MY JOB TO MEXICO PLACARDS THOUGH HE OWNS A NONUNION CONSTRUCTION COMPANY THE UNIONISTS MOSTLY TEAMSTERS MACHINISTS AND LONGSHOREMEN LOUDLY SECONDED THE RAILING OF COMRADES WHO FOLLOWED THE CONGRESSWOMAN TO THE MICROPHONE LOUISA GRATZ WHO'S ONE TOUGH LADY TO BE PRESIDENT OF THE DOCKWORKERS LOCAL TOOK UP THE CRY AGAINST INTERNATIONAL GOVERNMENT AND SAID OF CONGRESS IF THEY VOTE FOR NAFTA IT'S TREASON BY CONTRAST THE TOP LOCAL PEROTIAN A CHAP IN A RALPH LAUREN OXFORD SHIRT HAD NO ONE HOLLERING WHEN HE CALLED THE TREATY ODIOUS AND QUOTED HENRY CLAY AGAINST FREE TRADE AFTER HIM A PROFESSOR FROM SWANK PALOS VERDES DREW A FEW SNICKERS FROM THE BLUECOLLARS WHEN HE RECALLED I HAD MY FIRST SAILBOAT IN THIS HARBOR ANY POLITICAL GATHERING HAS ITS ODDER INGREDIENTS BUT THE MORE SERIOUS SIDE TO THIS SCENE WAS ALSO IN WHO WAS ALIGNING AN LA COUNTY FEDERATION OF LABOR OFFICIAL PLEDGED TO MAKE DEFENSE OF REP HARMAN WHO CALLS HERSELF PROBUSINESS A TOP UNION PRIORITY IN 1994 THE PORT AREA'S NEWLY ELECTED LA COUNCILMAN DEFIED THE POSITION OF THE HARBOR'S MANAGEMENT IN SAYING THERE'S NO WAY ON GOD'S GREEN EARTH THAT I WILL SUPPORT NAFTA THE AUGURY FROM THIS MODEST ASSEMBLY WAS THAT TRADE FEARS BOND AMERICANS WHO SHARE NOTHING MORE THAN A DREAD THAT THEIR COUNTRY IS NOT ITSELF ANYMORE THE UNIONISTS HAVE FELT THIS WAY FOR YEARS AND FOR ENVIRONMENTALISTS IN AN INDUSTRIAL SOCIETY IT COMES NATURALLY BUT TO THEIR NUMBERS HAVE BEEN ADDED A WIDE SWATH OF WHITECOLLAR AMERICA NOW THIS NEW MASS OR PERHAPS NEW MAJORITY IS PITTED AGAINST WHAT IT SEES AS A CORRUPT ELITE PRESIDING OVER THE RUIN OF THEIR LAND ON THE IMMEDIATE CAUSES OF THAT WRECKAGE POLLUTION IMMIGRATION CRIME LAYOFFS DEBT THEIR PERCEPTIONS ARE LIKELY TO VARY BUT THE CYNICISM IS COMMON TO ALL THE PEROT PHENOMENON IS OF COURSE THE OUTSTANDING EVIDENCE OF THE NEW MALAISE IN CALIFORNIA PARTICULARLY MEXICAN IMMIGRATION HAS EXPLODED AS A GRIPE AND NAFTA'S FATE MAY RIDE ON HOW IT IS SEEN IN THAT CONTEXT MANY ORDINARY ANGLOS SPEAK OF THE TWO IN THE SAME BREATH THOUGH MOST POLITICIANS TO DATE HAVE DISTINGUISHED BETWEEN THEM LOOKING FAVORABLY ON ONE BUT NOT THE OTHER THAT COULD CHANGE IN THE GRINDING LOS ANGELES RECESSION 9 UNEMPLOYMENT FOR GOING ON TWO YEARS LEADERS GET SKITTISH NAFTA MEANS SOME JOBS GET TRADED FOR OTHERS ECONOMISTS BELIEVE THE RESULTINGLY LARGER OVERALL ECONOMY MAKES LIFE BETTER FOR MOST BUT THE UNCERTAINTIES OF MARKET CHANGE DON'T APPEAL TO THOSE WHO WANT JOB CREATION TO HAPPEN WITH PREDICTABILITY LIKE AT THE OPENING OF A NEW FEDERAL BUILDING WE JUST CAN'T TAKE A CHANCE NOW REP HARMAN READ FROM A SPEECH AT THE RALLY SHE MOCKED THE FAVORITE QUALIFIER OF CAREFUL NAFTA SUPPORTERS IN THE LONG RUN AND THEN DELIVERED THE PUNCH YOU DIDN'T SEND ME TO CONGRESS TO WAIT FOR THE LONG RUN AND I'M NOT HER SHTICK IS DEFENSE CONVERSION AND SHE WANTS THE OUTOFWORK ENGINEERS AND MACHINISTS TO BUILD COMPUTER PARTS OR ELECTRIC CARS SHE QUOTED ONE OF PAT CHOATE'S OUTFITS IN WASHINGTON AS SAYING THE MEXICAN MAGNET IS GOING TO DRAW THAT PRODUCTION SOUTH OOOOOH THE CROWD REACTED MEXICO IS DREDGING TO EXPAND ITS PRIVATIZED PORTS AND THEREBY THREATEN THE LA HARBORS OOOOOOH AGAIN THE PROFESSOR ADDED THAT MEXICAN DRIVER LICENSES ARE NOW LEGAL ON US HIGHWAYS THUS COMPLETING THE PICTURE THE HORDES TO THE SOUTH TAKE OUR JOBS MAKE OUR GOODS AND WHAT THEY CAN'T PRODUCE THEY IMPORT AND DELIVER TO OUR STORES NO GRINGOS NEEDED UNTIL THE CHECKOUT COUNTER REP DANA ROHRABACHER THE REPUBLICAN WHO HELD THE HARBOR SEAT UNTIL REDISTRICTING IS AMAZED THAT AMERICANS ARE SO SPOOKED TODAY THAT THEY DON'T THINK THEY CAN COMPETE WITH MEXICO MOST OF HIS GOP COLLEAGUES ARE ALSO PRONAFTA BUT AMONG THEIR CONSTITUENTS ARE MANY WHO SEE THEMSELVES AND THEIR WORK AS REPLACEABLE COMMODITIES MOST AREN'T GEARED TO TRYING AN INNOVATIVE BUSINESS EVEN IN A REGION AS ENTREPRENEURIAL AS SOUTHERN CALIFORNIA AND SOME HAVE HAD THEIR SELFWORTH CRUSHED BY RAPID OR RELENTLESS RESTRUCTURING THE FAMILIAR TRUTH IS THAT TOO MANY AMERICANS HAVE GROWN UP WITH NEITHER THE HUSTLE NOR THE SKILLS TECHNICAL FINANCIAL OR LINGUAL TO PROSPER QUICKLY IN THE NEW ECONOMY IT DOES LITTLE MORE GOOD TO EXTOL TRADE'S VIRTUES TO THEM THAN IT DID TO ENCOURAGE WITH TEXTBOOK ECONOMICS WAGE COMPRESSION AS AN ANTIDOTE TO JOBLESSNESS IN THE DEPRESSION TOMORROW FOR MANY FOLKS WILL NOT BE ROSY NAFTA OR NO NAFTA BUT THE TREATY TIFF IS SOMETHING TO LATCH ONTO NO DEAL THEY SAY JUST AS THEIR DESPAIR FINISHED OFF GEORGE BUSH IN 1992 SO NOW DOES IT IMPERIL HIS BOLDEST LEGACY