NEW YORK SOTHEBY'S HOLDINGS INC THE NEW YORK ART AUCTION HOUSE SLASHED ITS QUARTERLY DIVIDEND BY 60 TO SIX CENTS A SHARE FROM 15 CENTS A SHARE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE SOTHEBY'S SHARES ROSE 125 CENTS TO 11625 ON THE NEWS WHICH HAD BEEN EXPECTED FOR SOME TIME SOTHEBY'S PRESIDENT MICHAEL AINSLIE SAID THE DIVIDEND CUT DIDN'T REFLECT REDUCED OPTIMISM AND THAT THE COMPANY WAS PLEASED WITH ITS FINANCIAL PERFORMANCE SO FAR THIS YEAR EARLIER THIS WEEK THE COMPANY SAID THIRDQUARTER NET INCOME ROSE 48 TO 166 MILLION OR 30 CENTS A SHARE FOR 1992 SOTHEBY'S PAID A DIVIDEND OF 60 CENTS A SHARE BUT EARNED SEVEN CENTS A SHARE IN AN INTERVIEW IN JUNE MR AINSLIE SAID THE COMPANY WOULDN'T CONTINUE TO PAY A DIVIDEND IN EXCESS OF EARNINGS SOTHEBY'S HAD 552 MILLION SHARES OUTSTANDING AS OF APRIL 30 9308200074 930820 BUSINESS BRIEF MARTIN COLORFI INC COMPANY AGREES TO PURCHASE TWO CLOSELY HELD CONCERNS MARTIN COLORFI INC SAID IT SIGNED A LETTER OF INTENT TO PURCHASE CUSTOM COLORANTS INC AND CUSTOM POLYMER INC TERMS WEREN'T DISCLOSED CUSTOM COLORANTS OF DALTON GA AND CUSTOM POLYMER PENSACOLA FLA HAD COMBINED ANNUAL REVENUE OF ABOUT 5 MILLION IN 1992 ABOUT 20 OF THEIR SALES WERE TO MARTIN COLORFI THE COMPANY SAID THE TWO CLOSELY HELD COMPANIES PRODUCE PIGMENTS AND ADDITIVES SUCH AS FLAME RETARDANTS USED IN POLYESTER NYLON AND OTHER MATERIALS MARTIN COLORFI EDGEFIELD SC MAKES POLYESTER FIBER AND PELLETS FROM RECYCLED PLASTIC MATERIALS 9308200073 930820 BUSINESS BRIEF MARION MERRELL DOW INC SMITHKLINE PARTNERSHIP GETS NICORETTE MARKETING RIGHTS MARION MERRELL DOW INC SAID IT WILL TRANSFER THE MARKETING RIGHTS TO ITS NICORETTE SMOKINGCESSATION AID TO A PARTNERSHIP IT OPERATES WITH SMITHKLINE BEECHAM PLC THE KANSAS CITY MO DRUG MANUFACTURER AND THE BRITISH CONCERN LAST YEAR ESTABLISHED SMITHKLINE BEECHAM CONSUMER BRANDS A VENTURE THAT COMBINED THE COMPANIES' US OVERTHECOUNTER PHARMACEUTICAL LINES THE PARTNERSHIP CURRENTLY SELLS SUCH ITEMS AS SMITHKLINE'S TUMS AND CONTAC PRODUCTS ALONG WITH MARION MERRELL'S GAVISCON AND CEPACOL IT HAS RIGHTS TO ALL FUTURE OVERTHECOUNTER PRODUCTS EITHER COMPANY MAY PRODUCE MARION MERRELL'S NICORETTE NICOTINE GUM INTRODUCED IN 1984 IS SOLD BY PRESCRIPTION ONLY THE COMPANY NOTED THAT THE FOOD AND DRUG ADMINISTRATION IS STUDYING THE GUM'S POSSIBLE SUITABILITY FOR OVERTHECOUNTER STATUS MARKETING OF THE GUM WILL BE TRANSFERRED TO THE PARTNERSHIP EFFECTIVE AT YEAR'S END REGARDLESS OF ITS STATUS 9308200072 930820 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN WORK IS NEARLY COMPLETE ON MEXICO'S 650 MILLION EL CUCHILLO DAM PROJECT WHICH WOULD MAKE MONTERREY THE FIRST MAJOR CITY IN THE COUNTRY TO HAVE POTABLE WATER THE DAM'S RESERVOIR WHICH WILL COVER 7285 ACRES WHEN IT REACHES CAPACITY NEXT APRIL PROMISES TO CURTAIL MONTERREY'S CHRONIC WATER SUPPLY PROBLEMS AND COULD ALSO SEND A SIGNAL THAT MEXICO IS SHEDDING ITS POORCOUSIN IMAGE IN NORTH AMERICA TREATMENT PLANTS HAVE BEEN BUILT IN THE MONTERREY AREA TO PURIFY THE WATER WHEN IT REACHES THE CITY EFFORTS ALSO ARE BEING MADE TO STOP UPSTREAM CONTAMINATION OF THE SAN JUAN RIVER WHICH FEEDS THE RESERVOIR SOME 32000 TONS OF SEWAGE AND WASTE IS DUMPED INTO THE RIVER EACH YEAR WIDESPREAD POTABLE WATER SUPPLIES ARE STILL YEARS AWAY MOST MEXICANS MUST BOIL THEIR DRINKING WATER OR BUY BOTTLED WATER TO AVOID INTESTINAL DISORDERS SPAIN HAS URGED CUBA TO BEGIN SELLING OFF PROFITABLE STATE COMPANIES AND TO AUTHORIZE NEW PRIVATE ENTERPRISES IN A REPORT TO CUBAN LEADER FIDEL CASTRO IN JULY FORMER SPANISH FINANCE MINISTER CARLOS SOLCHAGA ALSO PROPOSED THAT CUBA RESTRUCTURE POTENTIALLY PROFITABLE STATE COMPANIES AND CUT OFF SUBSIDIES WITH THE GOAL OF CLOSING INEFFICIENT INDUSTRIES SPAIN'S PRIME MINISTER HAD OFFERED LAST MONTH TO SEND A TEAM TO HELP CUBA SOLVE ITS ECONOMIC CRISIS SINCE THEN CUBA HAS OVERHAULED ITS ECONOMIC TEAM AND ALLOWED CUBANS TO OWN AND USE FOREIGN CURRENCY AUSTRALIA'S 199394 BUDGET RELEASED TUESDAY HAS DIMINISHED OPTIMISM ABOUT THE ECONOMY AMONG SMALL AND MIDSIZE BUSINESSES IN A SURVEY OF 374 COMPANIES 76 RATED THE BUDGET POOR OR VERY POOR MAINLY BECAUSE OF THE BUDGET'S INCREASED SALES AND GASOLINE TAXES ONLY 3 RATED THE BUDGET GOOD MORE THAN HALF THE RESPONDENTS EXPECT THE BUDGET TO HAVE A NEGATIVE EFFECT ON ECONOMIC GROWTH FOUR MONTHS AGO BUSINESSES WERE LARGELY OPTIMISTIC A SURVEY SOON AFTER THE MARCH ELECTIONS FOUND MORE RESPONDENTS BELIEVING THE ECONOMY WAS EXPANDING THAN CONTRACTING IN THE LATEST SURVEY NEARLY 60 SAID THE BUDGET WILL HURT THEIR BUSINESS SOUTH KOREA DEMANDED COMPENSATION FROM RUSSIA FOR SHOOTING DOWN A KOREAN JETLINER THAT STRAYED INTO SOVIET AIRSPACE 10 YEARS AGO IT WAS THE FIRST TIME SEOUL OFFICIALLY ASKED FOR PAYMENT FOR THE SOVIET MISSILE STRIKE ON THE KOREAN AIR LINES JET IN WHICH 269 PEOPLE WERE KILLED THE AMOUNT SOUGHT WASN'T DISCLOSED THE SOVIETS CLAIMED THEY MISTOOK THE PLANE FOR A US SPY AIRCRAFT IN JUNE A UNITED NATIONS PANEL RULED THAT ALTHOUGH THE PILOT OF THE KOREAN PLANE MADE NAVIGATION ERRORS THE SOVIETS ACTED HASTILY IN FIRING TURKMENISTAN WILL INTRODUCE ITS OWN CURRENCY THE MANAT TO REPLACE THE RUBLE ON NOV 1 AND EXCHANGE ALL BANK SAVINGS AT A RATE OF ONE MANAT FOR 1000 RUBLES THE EXCHANGE OF PAPER MONEY WILL BE LIMITED TO 30000 RUBLES THE FORMER SOVIET REPUBLIC URGED PEOPLE TO PUT THEIR MONEY IN BANK ACCOUNTS BY SEPT 1 AND PROMISED NOT TO CHECK THE SOURCE OF THOSE DEPOSITS TURKMENISTAN HAD PLANNED TO INTRODUCE THE MANAT ON OCT 27 BUT BACKED OUT IN MAY BECAUSE IT COULDN'T ENSURE THAT THE CURRENCY WOULD BE CONVERTIBLE THE DECISION TO SPEED UP THE NEW CURRENCY WAS PROMPTED BY RUSSIA'S WITHDRAWAL OF ALL PRE1993 RUBLES LAST MONTH THAILAND RECEIVED 2502 MILLION IN LOANS FROM THE ASIAN DEVELOPMENT BANK TO FUND TWO ELECTRICITY PROJECTS THE FIRST LOAN WORTH 1346 MILLION WILL BE USED BY THE METROPOLITAN ELECTRICITY AUTHORITY TO EXPAND ITS DISTRIBUTION CAPACITY AND SERVE MORE THAN 200000 NEW CUSTOMERS IN BANGKOK THE OTHER LOAN FOR 1156 MILLION WILL BE USED TO MEET INDUSTRIAL POWER DEMAND PARTICULARLY AROUND BANGKOK BOTH LOANS ARE REPAYABLE OVER 20 YEARS PAKISTAN'S CARETAKER PRIME MINISTER MOEEN QURESHI ANNOUNCED SWEEPING REFORMS INCLUDING TAXES ON WEALTHY LANDLORDS TO RESUSCITATE AN ECONOMY THAT HAS BEEN CRIPPLED BY CORRUPTION MISMANAGEMENT AND MANEUVERING BY THE WEALTHY NO PREVIOUS GOVERNMENT HAS RISKED TAXING PAKISTAN'S POWERFUL FEUDAL LANDLORDS WHO MAKE UP MOST OF THE 217SEAT LAWMAKING LOWER HOUSE OF PARLIAMENT MANY WEALTHY PEOPLE HAVE EVADED TAXES BY REPORTING THEIR INDUSTRIAL AND MANUFACTURING GAINS AS AGRICULTURE INCOME WHICH UNTIL YESTERDAY WASN'T TAXABLE MR QURESHI WHO STEPPED INTO THE JOB AFTER THE RESIGNATIONS OF PRIME MINISTER NAWAZ SHARIF AND PRESIDENT GHULAM ISHAQ KHAN ALSO PLEDGED TO PRESS AHEAD WITH PAKISTAN'S PRIVATIZATION PROGRAM CONCENTRATING ON SELLING OFF UTILITIES AIRLINES AND PORT FACILITIES ALSO IMPORT TARIFFS WILL BE REDUCED AS MUCH AS 50 WHEAT AND OILSEED PRICES WILL BE INCREASED TO ENCOURAGE PRODUCTION AND REDUCE IMPORTS THE MINIMUM WAGE WILL BE INCREASED SLIGHTLY AND SOME GOVERNMENT EMPLOYEES WILL GET RAISES THIEVES IN ZESTAFONI GEORGIA LIFTED A 10TON BRONZE STATUE OF VLADIMIR LENIN FROM ITS PEDESTAL AND HAULED IT AWAY BY TRUCK ON THE SECOND ANNIVERSARY OF THE SOVIET COUP MOROCCO'S KING HASSAN II PARDONED 1065 PRISONERS ON THE EVE OF A NATIONAL HOLIDAY THE 40TH ANNIVERSARY OF THE EXILE OF HIS FATHER MOHAMMED V BY FRANCE WHICH RULED MOROCCO THEN 9308200071 930820 MASSACHUSETTS ISSUES GUIDELINES TO EASE ANTITRUST HURDLE FOR HOSPITAL MERGERS BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON MASSACHUSETTS ISSUED ANTITRUST GUIDELINES FOR HOSPITAL MERGERS IN RESPONSE TO INDUSTRY DEMANDS FOR REGULATORY STEPS THAT WOULD MAKE COSTSAVING COMBINATIONS EASIER HOSPITAL OFFICIALS SAID THE MOVE WHICH COINCIDES WITH PLANS BY THE CLINTON ADMINISTRATION TO ISSUE SIMILAR FEDERAL GUIDELINES WOULD REDUCE APPREHENSIONS ABOUT PROPOSALS FOR COMBINATIONS EVEN THOUGH THE GUIDELINES DIDN'T OFFER MUCH IN TERMS OF EXPLICIT ANTITRUST EXEMPTIONS FOR HOSPITALS THE STATE GUIDELINES SAID THE ATTORNEY GENERAL SUPPORTS INTEGRATION IN THE INDUSTRY AND RECOGNIZES THAT CONSOLIDATION OF UNNEEDED OR UNDERUTILIZED HOSPITAL FACILITIES IS IN THE INTEREST OF CONSUMERS MASSACHUSETTS ATTORNEY GENERAL SCOTT HARSHBARGER WHO IS CHAIRMAN OF A NATIONAL ATTORNEYS GENERAL TASK FORCE ON HEALTH CARE SAID HIS STATE'S GUIDELINES WERE THE FIRST OF THEIR KIND AND COULD HELP SHAPE THE FEDERAL RULES AMONG OTHER THINGS THE GUIDELINES SPECIFY METHODS FOR MEASURING POTENTIAL ANTITRUST IMPACT ACCORDING TO THE GEOGRAPHY OF PATIENTS SERVED BY THE INSTITUTION INDUSTRIES THAT ARE INTENSELY COMPETITIVE WITH EXCESS OF INSTALLED CAPACITY DO FIND IT EASIER TO MERGE UNDER ANTITRUST LAWS SAID WILLIAM BROWNSBERGER A MASSACHUSETTS ASSISTANT ATTORNEY GENERAL THIS RECOGNIZES AT THIS TIME THE HOSPITAL INDUSTRY IS SUCH AN INDUSTRY WE'RE NOT CHANGING ANTITRUST LAW AS IT APPLIES TO HOSPITALS IN A SPEECH LAST WEEK HILLARY RODHAM CLINTON TOLD HOSPITAL EXECUTIVES THAT THE FEDERAL GOVERNMENT IS DEVELOPING GUIDELINES TO CLARIFY HOW THEY CAN ENTER INTO MERGERS JOINT VENTURES AND OTHER FORMS OF COLLABORATION WITHOUT FEAR OF VIOLATING FEDERAL ANTITRUST LAWS HOSPITALS HAVE ASKED GOVERNMENT OFFICIALS TO ISSUE SUCH CLARIFYING GUIDELINES IN ORDER TO REDUCE A CHILLING EFFECT ON PROPOSED CONSOLIDATIONS MR BROWNSBERGER SAID THE GUIDELINES DON'T ADDRESS ANTITRUST RULES ON HOSPITAL JOINT VENTURES SUCH AS AGREEMENTS BY NEIGHBORING HOSPITALS TO CONSOLIDATE OVERLAPPING DEPARTMENTS AND FOCUS ON DIFFERENT COMPLEMENTARY MEDICAL SPECIALTIES FIVE MAJOR TEACHING HOSPITALS IN BOSTON RECENTLY DISCLOSED THEY ARE HOLDING TALKS ON SUCH COLLABORATION TO ELIMINATE REDUNDANCIES SUCH AS MULTIPLE HEARTTRANSPLANT TEAMS IN NEIGHBORING HOSPITALS MR BROWNSBERGER DECLINED TO COMMENT ON WHETHER THE PROPOSED COLLABORATION WHICH IS STILL IN THE PRELIMINARY PLANNING STAGE WOULD VIOLATE STATE ANTITRUST LAW FREDRIC ENTIN GENERAL COUNSEL OF THE AMERICAN HOSPITAL ASSOCIATION ADDED THAT HOSPITAL CONSOLIDATION POSES THORNY ANTITRUST PROBLEMS NEEDING CLARIFICATION FOR INSTANCE BECAUSE MANY COMMUNITIES HAVE ONLY A FEW HOSPITALS MERGING TWO OR MORE OF THEM GENERALLY WOULD CREATE MARKET CONCENTRATION CUSTOMARILY PRESUMED TO BE ANTICOMPETITIVE ABOUT 20 STATES HAVE ENACTED OR ARE CONSIDERING LAWS THAT CREATE LIMITED EXCEPTIONS TO ANTITRUST LAW BECAUSE OF SUCH PROBLEMS MR ENTIN SAID THE LAWS TYPICALLY SPECIFY THAT STATE DEPARTMENTS OF HEALTH OR OTHER HEALTHCARE AGENCIES REVIEW PROPOSED HOSPITAL MERGERS TO ENSURE THAT THEY ARE IN THE PUBLIC INTEREST HE SAID 9308200070 930820 LETTERS TO THE EDITOR NOTILL FARMS BETTER ALL THE WAY AROUND YOUR JULY 8 ARTICLE ON NOTILL FARMS GIVES READERS NO CLUE THAT THE HERBICIDE USE TABLES REPRESENT ONLY 29 OF THE CORN GROWN IN IOWA SPECIFICALLY CORN GROWN ON THE SAME LAND WHERE CORN WAS GROWN THE PREVIOUS YEAR THE OTHER 71 OF IOWA'S CORN IS GROWN IN ROTATION WITH SOYBEANS AND SOME HAY OR OATS THE DATA IN THE TABLE ARE NOT STATISTICALLY SIGNIFICANT ESPECIALLY FOR NOTILL WHERE DATA COME FROM A TOTAL OF ONLY 11 FIELDS ALACHLOR IS REPRESENTED BY ONLY ONE FIELD CYANAZINE THREE FIELDS METOLACHLOR EIGHT FIELDS AND ATRAZINE 10 FIELDS ANY PHD WILL TELL US THAT ONE SAMPLE IS NOT A SCIENTIFICALLY DEFENSIBLE REPRESENTATION OF A LARGE POPULATION THE ARTICLE FAILED TO INCLUDE DATA THAT THE AGRICULTURE DEPARTMENT COLLECTED ON THREE OTHER CHEMICALS 24D CHLORPYRIFOS AND TERBUFOS NOTILL FARMERS USED LESS OF EACH OF THESE THREE CHEMICALS IN ALL CASES THAN DID THEIR LOWTILL AND CONVENTIONAL TILL COUNTERPARTS APPARENTLY THE AUTHOR FELT THIS DATA WOULD HAVE DILUTED HIS CASE THAT NOTILL WAS WORSE FOR THE ENVIRONMENT AND THE CONSUMER THAN CONVENTIONAL METHODS BURIED WITHIN THE ARTICLE IS A MENTION OF THE POTENTIAL FOR LESS CONTAMINATION OF SURFACE WATERS FROM NOTILL FIELDS BUT THE MORE VISABLE TABLE DOES NOT REFLECT IT NOTILL FIELDS CONTRIBUTE LESS THAN ONETHIRD AS MUCH HERBICIDES TO STREAMS AS CONVENTIONAL MOLDBOARD PLOW TILLAGE THE TABLE MAY BE ACCURATE WITH RESPECT TO RAW DATA BUT IT IS SCIENTIFICALLY INVALID AND UNREPRESENTATIVE OF 71 OF IOWA'S CORN CROP DESPITE THE ARTICLE'S INCOMPLETE DATA ABOUT NOTILL I CONCLUDE THAT NOTILL IS STILL A FAR BETTER SYSTEM FOR THE ENVIRONMENT THE CONSUMER AND THE FARMER THAN CONVENTIONAL MOLDBOARD PLOW TILLAGE 9308200069 930820 MOTOROLA TO INVEST IN SCOTLAND SCHAUMBURG ILL MOTOROLA INC SAID IT WILL INVEST ABOUT 72 MILLION IN ITS EAST KILBRIDE SCOTLAND SEMICONDUCTOR FACTORY TO EXPAND THE PLANT'S CHIPMAKING CAPACITY THE INVESTMENT WILL CREATE 180 NEW JOBS AT THE PLANT MOTOROLA SAID 9308200068 930820 COSTLIER LABOR FEWER JOBS THE PRICE OF A HEALTH CARE MANDATE BY CARLOS BONILLA SPEAKING TO THE AMERICAN HOSPITAL ASSOCIATION EARLIER THIS MONTH HILLARY RODHAM CLINTON QUESTIONED WHY COMPANIES THAT DO NOT PROVIDE HEALTH INSURANCE TO THEIR EMPLOYEES SHOULD BE ALLOWED TO GET WHAT AMOUNTS TO A FREE RIDE MRS CLINTON WHO HEADED THE WHITE HOUSE HEALTH CARE TASK FORCE DEMONSTRATED WITH THIS COMMENT THAT SHE HAD NO IDEA AT ALL HOW HEALTH CARE IS ACTUALLY FINANCED IN AMERICA MRS CLINTON HAS CONFUSED EMPLOYMENTBASED HEALTH INSURANCE WITH EMPLOYERPAID HEALTH INSURANCE IN FACT THERE IS NO SUCH THING AS EMPLOYERPAID HEALTH INSURANCE ALL WORKERS WHO RECEIVE HEALTH INSURANCE THROUGH THEIR PLACE OF EMPLOYMENT PAY FOR THAT COVERAGE EITHER DIRECTLY THROUGH DEDUCTIONS FROM THEIR PAYCHECKS OR INDIRECTLY THROUGH LOWER WAGES THE ABSENCE OF A HEALTH INSURANCE DEDUCTION ON A PAY STUB BY NO MEANS MAKES THIS AN EXPENSE PAID FOR BY EMPLOYERS BECAUSE OF THIS CONFUSION MRS CLINTON HAS FAILED TO ASK THE QUESTION THAT BELONGS AT THE CORE OF ANY DISCUSSION OF A HEALTH CARE MANDATE WHAT WILL BE THE IMPACT ON EMPLOYMENT OF A FEDERALLY MANDATED WAGE INCREASE OF APPROXIMATELY 5000 THE EMPLOYER'S SHARE OF THE COST OF PROVIDING HEALTH INSURANCE COVERAGE FOR A WORKER WITH DEPENDENTS THAT THE ADMINISTRATION IS PROPOSING ESTIMATE JUNE O'NEILL AND DAVID O'NEILL BOTH PROFESSORS OF ECONOMICS AT BARUCH COLLEGE CITY UNIVERSITY OF NEW YORK HAVE THE ANSWER IN A STUDY PREPARED FOR THE EMPLOYMENT POLICIES INSTITUTE RECOGNIZING THAT A MANDATE REQUIRING EMPLOYERS TO PAY THEIR WORKERS' HEALTH INSURANCE EXPENSES TRANSLATES DIRECTLY INTO AN INCREASE IN LABOR COSTS THE O'NEILLS ESTIMATE THAT THIS INCREASED COST WILL LEAD TO THE LOSS OF 31 MILLION JOBS THESE LOST JOBS WILL NOT BE SCATTERED RANDOMLY ACROSS THE ECONOMY THEY WILL BE HEAVILY CONCENTRATED IN JUST SEVEN INDUSTRIES MORE THAN 75 OF THE LOST JOBS WILL BE IN INDUSTRIES SUCH AS RESTAURANTS OTHER SECTORS OF RETAIL TRADE AND CONSTRUCTION ALTHOUGH SEEMINGLY UNRELATED THESE SEVEN INDUSTRIES SHARE ONE COMMON TRAIT THEY ARE ALL EMPLOYERS OF LARGE NUMBERS OF LOWWAGE AND THEREFORE MORE OFTEN UNINSURED WORKERS THE DISPROPORTIONATELY LARGE CONCENTRATION OF JOB LOSSES IN THESE INDUSTRIES RELATIVE TO THE ECONOMY AS A WHOLE REFLECTS THE CONCENTRATION OF LOWWAGE WORKERS IN THESE SECTORS LABOR COSTS WOULD RISE BY MORE THAN 19 IN THE RESTAURANT INDUSTRY WITH A HEALTH CARE MANDATE COSTS WOULD RISE BY MORE THAN 33 IN PRIVATE HOUSEHOLD SERVICES AND BY MORE THAN 15 IN AGRICULTURE AN EXTERNAL INCREASE IN LABOR COSTS SUCH AS THE CLINTON MANDATE WOULD IMPOSE IS NOT A MAJOR ISSUE IN HIGHERWAGE INDUSTRIES IN THESE INDUSTRIES ANY COSTS THAT ARISE WILL BE QUICKLY SHIFTED BACK ONTO PAYROLLS NOT NECESSARILY THROUGH AN IMMEDIATE REDUCTION IN WAGES ALTHOUGH SOME OF THAT WILL NO DOUBT HAPPEN BUT MORE OFTEN FROM AN EROSION IN WAGE INCREASES UNTIL THE COMPENSATION PACKAGE IS BROUGHT BACK INTO LINE THIS CANNOT HAPPEN AS READILY FOR LOWWAGE JOBS CUTTING A PLANNED 5 WAGE INCREASE ON A 40000 JOB BY HALF SHIFTS 1000 OF THE MANDATE ONTO A WORKER'S WAGES IN JUST ONE YEAR IN THIS EXAMPLE A COMPLETE SHIFTING OF THE MANDATE'S COST CAN BE ACCOMPLISHED IN FIVE YEARS AN EMPLOYER COST HAS BEEN CONVERTED INTO AN EMPLOYEE COST BUT IT WOULD TAKE 15 YEARS OF SUCH SHIFTING TO ACCOMPLISH THE SAME FOR A MINIMUMWAGE JOB MOREOVER FASTER SHIFTING THROUGH AN IMMEDIATE REDUCTION IN THE EARNINGS OF LOWWAGE WORKERS IS BLOCKED BY THE MINIMUM WAGE AND EVEN WITHOUT THE MINIMUMWAGE CONSTRAINT A SERIOUS INSTITUTIONAL CONSTRAINT COMES INTO PLAY WHO WOULD WORK AT A 10000AYEAR JOB ONLY TO SEE CASH WAGES HALVED TO 5000 A BLUE CROSS CARD WON'T PAY THE RENT IN LOWWAGE JOBS THE ONLY MEANS TO REDUCE LABOR COSTS IS TO REDUCE LABOR AND WHEN LABOR COSTS ARE A HIGH PERCENTAGE OF TOTAL OPERATING COSTS AS THEY ARE IN THE MOST AFFECTED INDUSTRIES THE EFFECT WILL BE LARGE JOB LOSSES JOB LOSSES ARE NOT RELATED TO THE SIZE OF THE FIRM ALTHOUGH THE ADMINISTRATION HAS SPOKEN OFTEN OF ITS INTENTION TO ACCOMMODATE SMALL BUSINESS BUSINESS SIZE IS A CRUDE DETERMINANT MANY SMALL BUSINESSES SUCH AS LAW FIRMS AND VENTURE CAPITAL FIRMS ARE MUCH BETTER SUITED TO ABSORB HIGHER LABOR COSTS THAN SOME OF THE LARGEST COMPANIES PROVIDING MOSTLY ENTRYLEVEL JOBS CLEARLY A MANDATE ON A RESTAURANT WITH 100 EMPLOYEESMANY OF THEM PARTTIMERS WORKING FOR RELATIVELY LOW WAGESHAS A VERY DIFFERENT IMPACT THAN A MANDATE ON GENERAL MOTORS YET BOTH ARE LIKELY TO BE VIEWED AS CAPABLE OF ABSORBING THE NEW MANDATE AS A CONSEQUENCE LOWWAGE WORKERS THE PORTION OF THE WORK FORCE THAT A MANDATE AIMS TO HELP WILL SUFFER THE BULK OF THE JOB LOSSES FROM A MANDATE PRESIDENT CLINTON HAS VOWED TO THE AMERICAN PEOPLE TO END WELFARE AS WE KNOW IT HIS PRESCRIPTION APPEARS TO RELY HEAVILY ON A FAMILIAR REMEDY TWO YEARS OF EDUCATION AND TRAINING FOR ADULT RECIPIENTS AFTER WHICH THEY WOULD BE EXPECTED TO FIND A JOB AND CEASE RELIANCE ON GOVERNMENT ASSISTANCE THE PRESIDENT'S PROMISE AT LEAST ACCORDING TO THE CAMPAIGN RHETORIC IS TO HELP PUBLIC ASSISTANCE RECIPIENTS FIND NOT ONLY A JOB BUT A GOOD JOB THE QUESTION BEFORE US IS WHETHER THE PRESIDENT'S DEFINITION OF A GOOD JOB ONE THAT APPEARS TO INCLUDE A GENEROUS MANDATED HEALTH BENEFITS PACKAGE EFFECTIVELY ELIMINATES THE PROSPECTS OF OBTAINING ANY JOB AT ALL MANY OF THE PEOPLE SEEKING TO MOVE FROM WELFARE TO WORK ARE QUALIFIED ONLY FOR LOWERWAGE POSITIONS THEY CAN MOVE UP THE LADDER ONLY IF THEY ARE GIVEN THE OPPORTUNITY TO WORK BUT A MANDATE IS INSENSITIVE TO THE LABOR MARKET IT WOULD VASTLY INCREASE THE COST OF HIRING THESE WORKERS THEREBY BECOMING A LATENT DISINCENTIVE TO HIRE THE TYPICAL SINGLE MOTHER ON WELFARE THESE INDIVIDUALS CANNOT PAY FOR BENEFITS BY TRADING WAGES THEY PAY WITH THEIR JOBS PRESIDENT CLINTON SEEMS TO HAVE TAKEN NOTE OF SOME OF THE PROBLEMS A MANDATE WOULD IMPOSE ON LOWWAGE INDUSTRIES SPEAKING TO THE NATION'S GOVERNORS MONDAY THE PRESIDENT STATED THAT A MANDATE HAD THE POTENTIAL TO PLACE LOWWAGE INDUSTRIES IN DEEP TROUBLE THE PRESIDENT WENT ON TO OFFER THE HOPE THAT A MANDATE'S COSTS WOULD BE CAPPED AT ABOUT 7 OF PAYROLL CAPS ON THE MANDATE'S COST IF THEY ARE ACTUALLY REALIZED WILL REDUCE THE JOB LOSS ESTIMATES PRESENTED HERE BUT IT IS STILL PREMATURE TO BANK ON CAPS AT LEAST AT THE LEVEL DISCUSSED BY THE PRESIDENT TOO MUCH OF THE FINANCING FOR HEALTH REFORM HINGES ON PREDICTED SAVINGS FROM THE DELIVERY OF HEALTH CARE SAVINGS THAT HAVE PROVED ELUSIVE TO MORE THAN ONE PRESIDENT MOREOVER THE PRESIDENT'S HOPE TO CAP THE MANDATE COST AT 7 MAY BE HOPELESSLY UNREALISTIC RECENT ESTIMATES HAVE PLACED THE COST OF HEALTH CARE REFORM AT BETWEEN 10 AND 12 OF PAYROLL A CAP AT 7 WOULD LEAVE THE PRESIDENT MANY BILLIONS OF DOLLARS SHORT OF THE REVENUE HE NEEDS FOR REFORM JUST MONTHS AFTER PASSING A LARGE TAX INCREASE CAPS ON MANDATES MAY VERY WELL EXPERIENCE THE SAME FATE AS THE MIDDLECLASS TAX CUT YET JOB LOSSES WILL CONTINUE EVEN WITH THE PRESIDENT'S ADMISSION THAT ACCOMMODATION NEEDS TO BE MADE FOR THE NEEDS OF LOWWAGE WORKERS AND INDUSTRIES THESE LOSSES WILL ARISE BECAUSE THE PRESIDENT IS PROCEEDING ON THE SAME MISTAKEN ASSUMPTION AS MRS CLINTON THAT IT IS EMPLOYERS WHO PAY FOR BENEFITS OUT OF PROFITS INSTEAD OF WORKERS OUT OF WAGES THE NATION'S ECONOMISTS AGREE THIS SPRING THE SURVEY CENTER AT THE UNIVERSITY OF NEW HAMPSHIRE POLLED MEMBERS OF THE AMERICAN ECONOMICS ASSOCIATION REGARDING THEIR VIEWS ON HEALTH CARE MANDATES THE ASSOCIATION IS THE LEADING PROFESSIONAL BODY FOR AMERICAN ECONOMISTS EIGHTY PERCENT OF ECONOMISTS RESPONDED THAT A HEALTHCARE MANDATE WOULD RESULT IN LOST JOBS FOR LOWER WAGE WORKERS THE O'NEILLS HAVE QUANTIFIED THAT LOSS IN HIS SPEECH TO THE NATION'S GOVERNORS THE PRESIDENT WARNED THE PUBLIC TO STOP BELIEVING THAT HEALTH CARE IS PAID FOR BY THE TOOTH FAIRY HE WOULD DO WELL TO HEED HIS OWN ADVICE MR BONILLA IS CHIEF ECONOMIST OF THE EMPLOYMENT POLICIES INSTITUTE THIS RESEARCH ORGANIZATION WHOSE MEMBERS ARE DRAWN FROM THE HOSPITALITY INDUSTRY FOCUSES ON ENTRYLEVEL AND SERVICESECTOR EMPLOYMENT ISSUES 9308200067 930820 TECHNOLOGY & HEALTH BATTERY MAY MAKE ELECTRIC VEHICLES MUCH MORE VIABLE BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL CHEMISTS AT CLARK UNIVERSITY IN WORCESTER MASS SAID THEY HAVE DEVELOPED A BATTERY THAT MAY REPRESENT A SIGNIFICANT STEP TOWARD A VIABLE ELECTRIC CAR IN THE LATEST ISSUE OF SCIENCE THE RESEARCHERS CLAIMED THAT THE BATTERY PROVIDES SIX TIMES AS MUCH POWER PER UNIT OF WEIGHT AS THE CURRENT LEADACID BATTERIES BEING USED IN EXPERIMENTAL ELECTRIC VEHICLES MOREOVER THEY SAID THE BATTERY USES WIDELY AVAILABLE AND RELATIVELY LOWCOST MATERIALS AND RUNS AT ROOM TEMPERATURE THE BATTERY'S UNIQUENESS LIES IN ITS COUPLING OF SULFUR AND ALUMINUM TO GENERATE ELECTRICAL CURRENT SAID STUART LICHT A CHEMIST WHO DEVELOPED THE BATTERY WITH ANOTHER CHEMIST DHARMASENA PERAMUNAGE OTHER TYPES OF BATTERIES UNDER DEVELOPMENT FOR ELECTRIC CARS INCLUDE SODIUMSULFUR NICKELMETAL HYDRIDE NICKELCADMIUM AND NICKELIRON MR LICHT SAID THAT MOST OTHER BATTERIES HAVE SIGNIFICANT DISADVANTAGES THE TRADITIONAL LEADACID BATTERY HE SAID IS TOO HEAVY AND AN ENVIRONMENTAL PROBLEM BECAUSE OF THE LEAD CONTENT THE SODIUMSULFUR BATTERY WHICH HAS BEEN IN DEVELOPMENT FOR NEARLY 20 YEARS IS PROMISING ON PAPER HE SAID BUT IT OPERATES AT TEMPERATURES BETWEEN 600 AND 700 DEGREES FAHRENHEIT THAT REQUIRE EXPENSIVE INSULATING ALSO SODIUM LIKE LITHIUM IS EXPLOSIVE WHEN IT COMES IN CONTACT WITH MOISTURE THE BATTERIES OUT THERE ARE EITHER ENVIRONMENTALLY HAZARDOUS OR CAN'T POWER A CAR FOR LARGE DISTANCES WITHOUT A RECHARGE HE SAID WHAT WE HAVE IS SOMETHING VERY NOVEL BUT AT THE SAME TIME MR LICHT CAUTIONED THAT THE TEAM'S SULFURALUMINUM BATTERY IS STILL IN EARLY STAGES OF DEVELOPMENT SULFUR ACTS AS THE CATHODE OR POSITIVE TERMINAL IN THE BATTERY RESEARCHERS CONVERTED THE LIGHTWEIGHT MATERIAL AN INSULATOR AT ROOM TEMPERATURE INTO A CONDUCTOR BY SIMPLY IMMERSING IT IN A POLYSULFIDE SOLUTION IN CONTRAST IN THE SODIUMSULFUR BATTERY SULFUR MUST BE MELTED AT TEMPERATURES ABOVE 600 DEGREES FAHRENHEIT TO MAKE IT A CONDUCTOR HE SAID THE ALUMINUM IS THE ANODE OR NEGATIVE TERMINAL IT'S LIGHTER THAN OTHER MATERIALS CURRENTLY USED IN BATTERIES AND STORES MORE ENERGY THAN SAY SODIUM ALSO IT ISN'T A PROBLEM ENVIRONMENTALLY LIKE CADMIUM AND LEAD SAID MR LICHT THE CHEMIST SAID THEIR BATTERY HAS DEMONSTRATED AN ENERGY CAPACITY OF AS MUCH AS 200 WATT HOURS PER KILOGRAM THE LEADACID BATTERIES ON THE OTHER HAND PROVIDE 35 WATT HOURS PER KILOGRAM AND ENABLE CARS TO TRAVEL BETWEEN 60 AND 80 MILES BEFORE RECHARGE MR LICHT SAID PRELIMINARY INDICATIONS ARE THAT THE SULFURALUMINUM BATTERY HAS THE POTENTIAL TO DRIVE A CAR MORE THAN 300 MILES BEFORE RECHARGE ROUGHLY THE DISTANCE A CAR NOW TRAVELS ON A FULL TANK OF GASOLINE 9308200066 930820 BUSINESS BRIEF PORTLAND GENERAL CORP OREGON PUBLIC UTILITY PANEL IS ASKED TO ALLOW RATE RISE PORTLAND GENERAL ELECTRIC CO PORTLAND ORE SAID IT IS SEEKING PERMISSION FROM THE OREGON PUBLIC UTILITY COMMISSION TO RAISE ITS RESIDENTIAL AND SMALL FARM CUSTOMER PRICES AN AVERAGE OF 79 EFFECTIVE OCT 1 THE UTILITY A UNIT OF PORTLAND GENERAL CORP SAID IT IS ASKING FOR AN INCREASE BECAUSE OF THE BONNEVILLE POWER ADMINISTRATION'S NEARLY 16 RATE BOOST BONNEVILLE IS A FEDERAL AGENCY THAT TRANSMITS AND SELLS HYDROELECTRIC POWER IN SEVEN STATES UNDER THE PROPOSED INCREASE PORTLAND GENERAL SAID ITS AVERAGE RESIDENTIAL CUSTOMER USING 1000 KILOWATTHOURS A MONTH WOULD PAY 5353 AN INCREASE OF ABOUT 390 A MONTH COMMERCIAL AND INDUSTRIAL CUSTOMERS WOULDN'T BE DIRECTLY AFFECTED BY THE PROPOSED PRICE INCREASE 9308200065 930820 BUSINESS BRIEF GENTRA INC HOLDERS OF DEBT AND SHARES APPROVE PLANNED ASSET SALE HOLDERS OF GENTRA INC'S SHARES AND DEBT APPROVED A PLAN TO SELL VIRTUALLY ALL OF THE FINANCIALSERVICES CONCERN'S OPERATING ASSETS TO ROYAL BANK OF CANADA THE APPROVALS CAME IN A SERIES OF FOUR MEETINGS HELD THIS WEEK THE PLAN WHICH HAS BEEN IN THE WORKS FOR SEVERAL MONTHS STILL REQUIRES FINAL APPROVAL FROM AN ONTARIO COURT UNDER THE PROPOSAL MONTREALBASED ROYAL BANK HAS AGREED TO PAY 166 BILLION CANADIAN DOLLARS US126 BILLION FOR THE GENTRA ASSETS TORONTOBASED GENTRA FORMERLY NAMED ROYAL TRUSTCO LTD WILL CONTINUE AS A SEPARATE ENTITY TO LIQUIDATE LOAN PORTFOLIOS COMPOSED MAINLY OF COMMERCIAL REALESTATE LOANS IN CANADA BRITAIN AND THE WESTERN US IN ORDER TO REPAY THE COMPANY'S DEBT OVER THE NEXT FIVE YEARS 9308200064 930820 LEISURE & ARTS BOOKSHELF WORSHIPPING AT THE ALTAR OF THATCHIANITY BY DAVID BROOKS I RECENTLY TURNED ON THE BBC AND THERE WERE TWO OF BRITAIN'S LEADING JOURNALISTS WITH THEIR HEADS APPARENTLY IN MARGARET THATCHER'S NOSTRILS THE SEGMENT OF THE SHOW WAS ON JOHN MAJOR BUT TO ATTRACT VIEWERS THE PRODUCER HAD BUILT A SET WITH A GIANT IMAGE OF BARONESS THATCHER AND THE JOURNALISTS' CHAIRS WERE ARRANGED SO THAT THEIR HEADS FIT SNUGLY IN FRONT OF HER NOSE BRITISH POLITICS IS LIKE THAT THESE DAYS A DINNER PARTY AT WHICH THE GUESTS KEEP NOTICING THAT KING KONG IS LOOKING IN THE WINDOW THE GUARDIAN RECENTLY RAN A FULLPAGE PHOTO SHOWING THE BOTTOM THIRD OF A WOMAN'S BODY WITH THE CAPTION IT HAS TO BE SAID THAT SHE COMES ALIVE WHEN THERE IS A WHIFF OF GUNFIRE IN THE AIR THEY DIDN'T HAVE TO IDENTIFY THE SUBJECT IT WAS SHE IN THE SPECTATOR MATTHEW PARRIS WROTE AN ESSAY ABOUT MRS THATCHER'S NEW ROLE IN WHICH HE DIDN'T EVEN MENTION HER NAME UNTIL THE LAST SENTENCE MR PARRIS OBSERVED THAT JUST AS A MESSIAH STARTS HIS LIFE AS A REAL PERSON DOING REAL MEASURABLE THINGS AND THEN ENDS HIS LIFE AS AN IDEALIZATION OF A MAN SO SHE HAS PASSED FROM THE PART OF HER LIFE IN WHICH SHE ACTED INTO THE PART IN WHICH SHE JUST IS THATCHERISM IS DEAD MR PARRIS CONCLUDED HIS PIECE HAIL THE DAWN OF THATCHIANITY WHAT IS IT ABOUT THIS WOMAN THAT SHE LIVES EVEN AFTER POLITICAL DEATH MAKE NO MISTAKE POLITICALLY SHE'S A GONER AND THAT MAKES THE STORY OF HER POLITICAL ASSASSINATION RESONATE LIKE SHAKESPEARE EVIDENTLY IT STARTS WITH SEX APPEAL PEOPLE WHO HAVE MET HER IN SMALL GROUPS TALK ABOUT HER EYES AND SEDUCTIVE MANNER JUST AFTER THE DIRECTOR DAVID LEAN MET HER HE HISSED IN A STATE OF HIGH EXCITEMENT SHE IS ALL WOMAN ALL WOMAN ALL WOMAN AS MANY WALL STREET JOURNAL EDITORIAL WRITERS HAVE DISCOVERED BELIEF IN PRIVATIZATION SCHOOL CHOICE AND STRICT MONETARY POLICY DOESN'T AUTOMATICALLY PRODUCE THE SORT OF RAW MAGNETISM THAT CAUSES PEOPLE TO SWOON AT FIRST MEETING MRS THATCHER'S MAGNETISM IS INSEPARABLE FROM HER CONVICTION BUT THOSE CONVICTIONS GO DEEPER THAN MERE POLICY BUT LIKE MOST PEOPLE OF ACTION SHE'S UNABLE TO ARTICULATE THE ELEMENTS OF HER PRESENCE THAT REALLY MATTER THE LATE SHIRLEY ROBIN LETWIN DOES A SUPERB JOB OF DESCRIBING THATCHERISM'S MORAL ASPIRATIONS WHICH IS WHERE POLITICS GETS FORGED IN THE ANATOMY OF THATCHERISM TRANSACTION 377 PAGES 3295 LETWIN ARGUES THAT THATCHERISM IS BUILT AROUND THE VIGOROUS VIRTUES THE INDIVIDUAL PREFERRED BY THATCHERITES IS UPRIGHT SELFSUFFICIENT ENERGETIC ADVENTUROUS INDEPENDENTMINDED LOYAL TO FRIENDS ROBUST AGAINST ENEMIES THUS WHEN THATCHERITES SOUGHT TO PRIVATIZE THEY DID SO VIA MASS PUBLIC OFFERS THOUGH THAT METHOD DID NOT YIELD THE HIGHEST RECEIPTS THATCHERITES WANTED TO MAKE AS MANY PEOPLE OWNERS AS POSSIBLE OWNING SHARES OR COUNCIL HOUSES THEY BELIEVED WOULD MAKE PEOPLE BEHAVE MORE LIKE MASTERS OF THEIR OWN DESTINY THATCHERITE TAX POLICIES WERE DESIGNED TO MAKE PEOPLE WORK MORE AGGRESSIVELY AS UNDOUBTEDLY BRITS NOW DO HER SCHOOL REFORMS WERE DESIGNED TO TAKE SCHOOLS OUT OF A VAST EDUCATIONAL SYSTEM AND MAKE THEM INDEPENDENT INSTEAD OF BEHAVING LIKE COGS THEY WOULD BEHAVE LIKE SURROGATE FAMILIES WITH ADMINISTRATORS PARENTS AND TEACHERS DETERMINING THEIR OWN SCHOOL'S IDIOSYNCRATIC FATE MRS THATCHER'S CONTRIBUTION WAS THAT SHE INSTINCTIVELY PERCEIVED THE LINK BETWEEN PUBLIC POLICIES AND PERSONAL CHARACTER AND SO WAS THE OPPOSITE OF A TECHNOCRAT MANAGER OR WONK SOMETIMES IN LETWIN'S BOOK IT IS HARD TO KNOW IF SHE IS DESCRIBING REAL THATCHERISM OR THATCHERISM AS MICHAEL OAKESHOTT LETWIN'S GREAT TEACHER WOULD HAVE WANTED IT TO BE BUT IN GENERAL SHE IS PERSUASIVE THE BEAUTY OF THE BOOK IS THE WAY IT CONNECTS POLICY DETAILS TO FUNDAMENTAL PHILOSOPHY AND SHOWS HOW THE LATTER DRIVES THE FORMER WHETHER POLITICIANS REALIZE IT OR NOT IT WOULD BE INTERESTING IF SOMEBODY WERE TO WRITE A SIMILAR BOOK ABOUT REAGANISM AS LETWIN EMPHASIZES THATCHERISM WAS DISTINCTLY BRITISH REAGANISM HAD A STRONGER RELIGIOUS COMPONENT TORY VIRTUES ARE SECULAR NOR DO AMERICANS USE THE PHRASE THE SMACK OF STRONG GOVERNMENT AS A COMPLIMENT THATCHERISM'S FAILURE LETWIN WRITES WAS THAT IT HAD NOT DEVELOPED AN UNDERSTANDING OF HOW VIGOR ONCE RECREATED IN BRITAIN COULD BE TRANSLATED INTO SOMETHING CALM GENTLE PLEASANT EVEN THE THATCHERITES THEMSELVES NOW SEEM TO HUNGER FOR A POLITICAL STYLE THAT IS IRONIC AND HAPPY ON THIS SIDE OF THE ATLANTIC R EMMETT TYRRELL WROTE AN UNDERAPPRECIATED BOOK THE CONSERVATIVE CRACKUP THE HEROES OF WHICH ENJOY A MEDITERRANEAN LOVE OF LIFE MAYBE A NEW LEADER WILL COME ALONG WHO FORCEFULLY EMBODIES THE VIGOROUS VIRTUES AND A SENSE OF FUN ONE OF LETWIN'S PREVIOUS BOOKS WAS ON THE GENTLEMANLY IDEAL AS EXPRESSED IN THE NOVELS OF ANTHONY TROLLOPE MAYBE IF MRS THATCHER HAD LEARNED TO SAVOR CLARET AND RIDE TO HOUNDS HER STYLE OF POLITICS WOULDN'T HAVE BEEN SO EXHAUSTING AND HER FORCED RETIREMENT WOULD BE EASIER TO BEAR MR BROOKS IS DEPUTY EDITORIALPAGE EDITOR OF THE WALL STREET JOURNAL EUROPE 9308200063 930820 SHORT INTEREST ON BIG BOARD HITS NEW HIGH CHRYSLER WALMART DISNEY ARE AMONG LEADERS AMEX ALSO HAS RECORD BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST LEVELS ON THE NEW YORK STOCK EXCHANGE CLIMBED 55 TO A RECORD AT MIDAUGUST SURPASSING A PREVIOUS HIGH SET ON JUNE 15 BIG BOARD SHORT INTEREST TOTALED 1095760529 SHARES UP FROM 1039091121 A MONTH EARLIER SHORT INTEREST ON THE AMERICAN STOCK EXCHANGE ALSO REACHED A RECORD LEVEL UP ABOUT 7 FROM THE PRIOR MONTH IT WAS THE FIRST TIME THAT THE MONTHLY FIGURE TOPPED 100 MILLION SHARES CHRYSLER CORP AGAIN LED THE LIST OF COMPANIES WITH THE HIGHEST BIG BOARD SHORT INTEREST 173 MILLION SHARES BUT THAT WAS A DECREASE OF 613000 SHARES FROM THE MIDJULY TRADING MONTH WALMART STORES INC WAS NEAR THE TOP OF THE LIST WITH 157 MILLION OF ITS SHARES SHORTED AN INCREASE OF 15 MILLION FROM MIDJULY WALT DISNEY CO CONTINUED TO SHOW HIGH SHORT INTEREST 148 MILLION SHARES ALTHOUGH THAT REPRESENTED A DECREASE OF 420767 SHARES FROM THE MONTH BEFORE TRADERS WHO SELL SECURITIES SHORT BORROW STOCK AND SELL IT BETTING THAT THE STOCK'S PRICE WILL DECLINE AND THAT THEY CAN BUY THE SHARES BACK LATER AT A LOWER PRICE FOR RETURN TO THE LENDER SHORT INTEREST IS THE NUMBER OF SHARES THAT HAVEN'T YET BEEN PURCHASED FOR RETURN TO LENDERS RISING SHORT INTEREST IN THE PAST HAS BEEN CONSIDERED BULLISH BY SOME ANALYSTS BECAUSE SHORT INTEREST TRADERS WOULD BE REQUIRED TO BUY BACK LARGE QUANTITIES OF SHARES THEY HAVE BORROWED HOWEVER SHORT PROGRAM TRADING OF LARGE VOLUMES OF SECURITIES BY INSTITUTIONAL INVESTORS THAT INVOLVES HEDGING AGAINST OTHER INVESTMENT RISKS RATHER THAN PURE BETS AGAINST INDIVIDUAL STOCKS MAY HAVE REDUCED THE EFFECTIVENESS OF THIS MEASURE OTHERS SAY US SURGICAL CORP IN KEEPING WITH THE PREVIOUS MONTH SHOWED A SIGNIFICANT INCREASE ABOUT 11 MILLION SHARES TO A TOTAL OF 133 MILLION INVESTORS BRACED FOR THE WORST AS THE FORMER HIGHFLYING SUPPLIER OF SURGICAL EQUIPMENT REPORTED A SECONDQUARTER LOSS SIGNIFICANTLY WIDER THAN BEARISH ANALYSTS' LOSS ESTIMATES MARRIOTT CORP AND HOME DEPOT INC REMAINED POPULAR WITH SHORT SELLERS AND REVERSED DECLINES IN THEIR RESPECTIVE SHORT POSITIONS FROM THE PREVIOUS MONTH MARRIOTT'S ROSE BY ABOUT 707000 SHARES TO 126 MILLION SHARES WHILE HOME DEPOT'S ROSE ABOUT 762900 SHARES TO 135 MILLION ON THE AMEX SHORT INTEREST ROSE TO 105120608 SHARES FROM THE PREVIOUS RECORD OF 97686047 ADJUSTED REPORTED IN MIDJULY THE LEVEL OF NEGATIVE SENTIMENT MEASURED BY THE BIG BOARD SHORT INTEREST RATIO JUMPED TO 446 FROM 418 THE RATIO IS THE NUMBER OF TRADING DAYS AT THE EXCHANGE'S AVERAGE DAILY TRADING VOLUME THAT WOULD BE REQUIRED TO CONVERT THE TOTAL SHORT INTEREST POSITION THE FOLLOWING TABLES SHOW THE BIG BOARD AND AMEX ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST 150000 SHARES EXISTED AT MIDAUGUST OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST 50000 SHARES SINCE MIDJULY SEE ACCOMPANYING TABLES WSJ AUG 9308200062 930820 BUSINESS BRIEF NESTLE SA STOUFFER UNIT TOLD TO END SODIUM MISREPRESENTATION AN ADMINISTRATIVE LAW JUDGE ORDERED STOUFFER FOOD CORP NOT TO MISREPRESENT THE SODIUM CONTENT OF ANY FROZENFOOD PRODUCT IT MARKETS IN THE FUTURE THE FEDERAL TRADE COMMISSION SAID THE ORDER FOLLOWS A JUDGE'S DECISION UPHOLDING FTC CHARGES THAT STOUFFER A UNIT OF NESTLE SA OF SWITZERLAND MADE DECEPTIVE CLAIMS REGARDING THE SODIUM CONTENT OF ITS LEAN CUISINE FROZEN ENTREES ACCORDING TO THE DECISION THE COMPANY'S LOWSODIUM ADVERTISING CAMPAIGN IN 1991 FOLLOWED A DECLINE IN MARKET SHARE FOR THE LEAN CUISINE LINE STOUFFER COULD NOT BE REACHED FOR COMMENT THE ORDER FOUND THAT ALTHOUGH THE SODIUM CONTENT OF LEAN CUISINE DISHES EXCEEDED PUBLIC GUIDELINES FOR LOWSODIUM CLAIMS THE COMPANY'S ADVERTISING SAID THE FOOD LINE WAS LOW IN SODIUM JUDGE JAMES P TIMONY REJECTED THE FTC'S ARGUMENT THAT STOUFFER'S USE OF THE GRAM RATHER THAN THE MILLIGRAM WHICH IS ONETHOUSANDTH OF A GRAM AND THE COMMONLY USED UNIT OF MEASUREMENT FOR SODIUM IN ITS ADS WAS UNFAIR AND DECEPTIVE ANNUAL 199091 SALES FOR STOUFFER'S LEAN CUISINE LINE WERE MORE THAN 200 MILLION ACCORDING TO THE DECISION 9308200061 930820 LAW PROSECUTORS OPEN THEIR CASE IN BEATING OF TRUCKER DURING LOS ANGELES RIOTS BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES PROSECUTORS BEGAN THEIR CASE AGAINST TWO BLACK MEN ACCUSED OF BEATING WHITE TRUCKER REGINALD DENNY BY DECLARING WE ARE NOT HERE TO TRY THE LOS ANGELES RIOTS THE CASE WHICH HAS INFLAMED RACIAL PASSIONS IN THE NATION'S SECONDLARGEST CITY ULTIMATELY BOILS DOWN TO LEGAL QUESTIONS OF IDENTITY AND INTENT THEY SAID DEFENDANTS' ATTORNEYS HAVE COMPLAINED THAT THEIR CLIENTS ARE BEING BLAMED FOR THE RIOTS ARMED WITH THREE AMATEUR VIDEOTAPES ONE TELEVISION NEWS STATION'S TAPE AND MANY PHOTOGRAPHS PROSECUTORS HOPE TO WIN CONVICTIONS OF DAMIAN MONROE WILLIAMS AND HENRY KEITH WATSON ACCUSED OF PARTICIPATION IN CIVIL UNREST LAST YEAR THAT WAS SPARKED BY A STATE JURY'S ACQUITTAL OF FOUR WHITE POLICE OFFICERS WHO BEAT BLACK MOTORIST RODNEY KING AFTER THE VERDICT MANY BLACKS TOOK TO THE STREETS INCLUDING PROSECUTORS SAY MESSRS WILLIAMS AND WATSON THE TWO DENY THEY ARE THE MEN IN THE PICTURES A SUBSEQUENT FEDERAL TRIAL OF THE WHITE POLICE OFFICERS RESULTED IN TWO CONVICTIONS BUT THE RELATIVELY LIGHT 2 1/2YEAR SENTENCES HANDED DOWN A FEW WEEKS AGO ANGERED BLACKS ANEW THE TRIAL IN A LOCAL CRIMINAL COURTROOM DREW PROTESTERS WHO CLAIMED MESSRS WILLIAMS AND WATSON ARE BEING TREATED UNFAIRLY SHORTLY AFTER THE HIGHPROFILE ARRESTS OF THE TWO DEFENDANTS LAST YEAR PROSECUTORS IN COURT PAPERS SAID THE BEATING OF MR DENNY WHICH CAME A FEW HOURS AFTER THE KING VERDICT WAS ANNOUNCED WAS A MAJOR FORCE IN THE IGNITION OF THE RIOTS THEY HAVE NOW TAKEN A LESS INFLAMMATORY APPROACH UNDER A NEW DISTRICT ATTORNEY WITH A MORE CONCILIATORY STYLE DURING HIS OPENING STATEMENT ASSISTANT DISTRICT ATTORNEY LARRY MORRISON POINTED A RED LASER BEAM AT IMAGES OF MEN HE SAID WERE THE DEFENDANTS FOCUSING ON CLOTHING AND CHARACTERSTICS THAT HE SAID LEFT LITTLE DOUBT OF THEIR IDENTITY BUT MR WILLIAMS SAID IN A TELEVISED INTERVIEW THIS WEEK THAT HE IS NOT THE MAN SHOWN THROWING A BRICK AT MR DENNY'S HEAD IN A WELLPUBLICIZED VIDEOTAPE JUDGE JOHN W OUDERKIRK SCOLDED MR WILLIAMS'S LAWYER FOR ATTEMPTING TO TRY THE CASE IN THE MEDIA THE LAWYER REPEATED MR WILLIAMS'S CLAIM IN COURT THURSDAY BOTH MEN ARE CHARGED WITH ATTEMPTED PREMEDITATED MURDER AND COULD FACE LIFE IN PRISON MR WILLIAMS 20 YEARS OLD ALSO FACES CHARGES OF ASSAULT AND ROBBERY AGAINST SEVEN OTHER PEOPLE MR WATSON 28 IS CHARGED WITH CRIMES AGAINST TWO OTHER PEOPLE MR DENNY HAS RECOVERED FROM THE BEATING BUT HAS PERMANENT SKULL DAMAGE AND FACIAL DISFIGUREMENT THE JURY EMPANELED LATE LAST WEEK COMPRISES THREE MEN AND NINE WOMEN AND INCLUDES THREE HISPANICS FIVE WHITES THREE BLACKS AND ONE FILIPINO THEY HAVE BEEN WARNED FROM THE BEGINNING OF JURY SELECTION AGAINST TAKING OTHER FACTORS LIKE THE RODNEY KING BEATING CASE AND POTENTIAL UNREST FROM THIS CASE INTO ACCOUNT AS THEY WEIGH THE EVIDENCE 9308200060 930820 BUSINESS BRIEF SAFECARD SERVICES INC ILLINOIS COURT ENJOINS FIRM EXCHAIRMAN HALMOS SAYS SAFECARD SERVICES INC FORMER CHAIRMAN AND DIRECTOR PETER HALMOS SAID AN ILLINOIS STATE JUDGE IN CHICAGO ENJOINED THE COMPANY FROM PURSUING ITS LAWSUIT AGAINST HIM IN WYOMING STATE COURT AN ATTORNEY FOR MR HALMOS JIM HUNTER SAID MR HALMOS CONTENDS THE DISPUTE HAS NO CONNECTION TO WYOMING AND SHOULD BE DECIDED IN ILLINOIS THE ATTORNEY SAID THE ILLINOIS COURT'S ORDER WAS BASED ON A FINDING THAT THE COMPANY'S ACTION AGAINST MR HALMOS IN WYOMING COULD POSSIBLY RESULT IN FRAUD GROSS WRONG AND OPPRESSION OF HIM A SPOKESMAN FOR THE CREDIT CARD PROTECTION COMPANY DECLINED TO COMMENT UNTIL THE COMPANY REVIEWED THE RULING 9308200059 930820 BUSINESS BRIEF SOUTHERN PACIFIC RAIL CORP LOS ANGELES ENDS ACCORD TO BUY UNIT'S RAIL TRACK SOUTHERN PACIFIC LINES SAID LOS ANGELES ENDED AN AGREEMENT TO BUY ITS 20MILE ALAMEDA CORRIDOR RAIL TRACK BUT SAID THE CITY REAFFIRMED INTEREST IN THE PROJECT OVERALL SOUTHERN PACIFIC LINES BASED IN SAN FRANCISCO IS THE OPERATING UNIT OF SOUTHERN PACIFIC RAIL CORP THE SALE PART OF THE RAILROAD COMPANY'S ASSETRESTRUCTURING PROGRAM WAS ORIGINALLY PART OF THE CITY'S EFFORT TO REDUCE CONGESTION ON LOS ANGELES HIGHWAYS AND TO CREATE JOBS UNDER THE AGREEMENT WHICH HAD BEEN SIGNED THE LOS ANGELES BOARD OF HARBOR COMMISSIONERS AND THE PORT OF LONG BEACH PLANNED A 260 MILLION PROJECT TO UPGRADE THE CORRIDOR FOR FREIGHT TRAFFIC THE PORT OF LOS ANGELES SAID IT DECIDED TO TERMINATE THE AGREEMENT DUE TO TIME CONSTRAINTS ENVIRONMENTAL CONDITIONS AND THE ABSENCE OF AGREEMENT WITH OTHER RAILROADS CONCERNING CORRIDOR OPERATIONS AND THE PAYMENT OF FEES FOR CORRIDOR USE ACCORDING TO THE COMPANY NONETHELESS A SOUTHERN PACIFIC SPOKESMAN SAID IT IS OUR BELIEF THAT WE CAN PUT THE DEAL BACK TOGETHER 9308200058 930820 BUSINESS BRIEF DEN DANSKE BANK PRETAX PROFIT IN FIRST HALF CLIMBED TO 3487 MILLION DENMARK'S LARGEST BANK DEN DANSKE BANK COPENHAGEN SAID ITS PRETAX PROFIT SOARED TO 24 BILLION KRONER 3487 MILLION IN THE FIRST SIX MONTHS FROM 6 MILLION KRONER A YEAR EARLIER MAINLY AS A RESULT OF GAINS ON SECURITIES KNUD SOERENSEN CHIEF EXECUTIVE OFFI CER DENIED THAT A LARGE PROPORTION OF THE SECURITIES GAINS COULD BE ATTRIBUTED TO CURRENCY SPECULATION DURING THE CURRENCY TURMOIL IN EUROPE DEN DANSKE BANK SAID THAT FIRSTHALF NET VALUATION GAINS ON SECURITIES FINANCIAL INSTRUMENTS AND HOLDINGS IN ASSOCIATED UNDERTAKINGS AMOUNTED TO 15 BILLION KRONER COMPARED WITH A LOSS OF 199 MILLION KRONER A YEAR EARLIER GAINS ON BONDS AND SHARES AMOUNTED TO 29 BILLION DANISH KRONER COMPARED WITH A LOSS OF 340 MILLION KRONER A YEAR EARLIER 9308200057 930820 INTERNATIONAL BRIEF VOLKSWAGEN AG EARLYRETIREMENT PROGRAM EXTENDED TO MORE WORKERS AS PART OF ITS CONTINUING COSTCUTTING MEASURES VOLKSWAGEN AG SAID IT WOULD OFFER EARLY RETIREMENT TO 3000 WORKERS WHO ARE 55 YEARS OLD THE LATEST EARLYRETIREMENT PROGRAM IS IN ADDITION TO PREVIOUS PLANS TO OFFER EARLY RETIREMENT TO 12500 WORKERS AGED 56 AND 57 IN JANUARY VW SAID IT WOULD TRY TO CUT ITS DOMESTIC STAFF BY 12500 AND ITS WORLDWIDE STAFF BY 36000 VW'S TOTAL WORLDWIDE EMPLOYMENT AT THE BEGINNING OF THE YEAR WAS 276000 HOWEVER KLAUS VOLKERT CHAIRMAN OF THE AUTO MAKER'S WORKER COUNCIL SAID THE UNIONS WOULD ACCEPT ONLY MEASURES TO REDUCE THE WORK FORCE THAT ARE ALREADY INCLUDED IN THE UNION CONTRACTS WITH VW AS A RESULT THE WORKER'S COUNCIL WILL OPPOSE MASS LAYOFFS PARTICULARLY IF THEY DON'T INCLUDE SEVERANCE BENEFITS AMONG THE MEASURES MR VOLKERT SAID VW COULD USE TO REDUCE ITS STAFF ARE TEMPORARY LAYOFFS IMPOSING A HIRING FREEZE AND USING WORKERS PART TIME 9308200056 930820 MARKETING & MEDIA ADVERTISING BUDWEISER HOPES FALL CLASSIC BLITZ REPLICATES SUCCESS OF BUD BOWL BY KEVIN GOLDMAN BUDWEISER RAISED BEER SALES IN JANUARY THE SLOWEST MONTH TO MOVE THE SUDSY PRODUCT OFF THE SHELF THANKS IN LARGE PART TO THE QUIRKY ADVERTISING OF THE BUD BOWL IN COMMERCIALS DURING THE SUPER BOWL LONGNECK BOTTLES OF THE BREW COME TO LIFE AND COMPETE IN A SUPER BOWL OF THEIR OWN ANNOYING PERHAPS EFFECTIVE CERTAINLY BEER SALES HAVE JUMPED 16 FOR THE MONTH OF JANUARY SINCE THE BUD BOWL FIRST EMERGED FROM ITS HUDDLE IN 1989 NOW BUDWEISER IS HOPING TO EXTEND ITS OFFSEASON MARKETING BY LAUNCHING ITS FIRST PROMOTION AND AD BLITZ CONNECTED TO BASEBALL'S FALL CLASSIC THE WORLD SERIES NOT TO WORRY ANHEUSERBUSCH ISN'T GOING TO SUBJECT BASEBALL FANS THROUGHOUT THE LAND TO AN INFURIATING BUD SERIES WITH BATTLING BOTTLES INSTEAD WE'RE TAKING THE BUD BOWL FORMULA AND TURNING OCTOBER AND THE SERIES INTO A MAJOR MEDIA EVENT SAYS MICHAEL OWENS MARKETING DIRECTOR OF BUDWEISER WE WANT TO DRIVE CONSUMERS TO RETAIL STORES AND DRIVE THEM TO WATCH THE WORLD SERIES WE'VE BEEN LOOKING FOR SOMETHING TO BUILD AROUND THE SEASON ACCORDING TO BEVERAGE MARKETING CORP BEER SALES NOTICEABLY DECREASE ONCE THE LEAVES START TURNING AND THE TEMPERATURE GOES DOWN IN OCTOBER BUD NEEDED A GIMMICK TO REVIVE SALES OF THE NATION'S NO 1 BEER BRAND PREDICTABLY BUDWEISER DECLINES TO DISCLOSE WHAT IT WILL SPEND ON THE PROMOTIONAL EFFORT BUT IT WILL HAVE TWO COMMERCIALS IN EVERY GAME OF THE WORLD SERIES IN ADDITION TO SHOWING A CLASSIC PLAY FROM A PAST BASEBALL GAME LAST YEAR A 30SECOND AD WENT FOR BETWEEN 175000 AND 200000 BUDWEISER IS USING A WATCHANDWIN GAME INSTEAD OF BUD BOTTLES PLAYING HARDBALL CONSUMERS ARE LOOKING FOR INNOVATIVE PROMOTIONS AND UNIQUE IDEAS SAYS MR OWENS WE DIDN'T WANT TO REPLICATE THE BUD BOWL WE WANTED TO CHALLENGE OURSELVES GOOD THING TOO THERE IS EVIDENCE THAT THE AUDIENCE'S LOVE AFFAIR OF THE BUD BOWL MAY BE FADING ACCORDING TO VIDEO STORYBOARD TESTS WHICH TRACKS AD POPULARITY THROUGH CONSUMER INTERVIEWS BUD BOWL FAILED TO FINISH IN THE TOP 10 IN THIS YEAR'S FIRST QUARTER SURVEY IN THE SAME PERIOD LAST YEAR IT WAS NO 8 FALLING FROM 1991'S FIRST QUARTER POSITION OF NO 4 IT'S BECOMING KIND OF A DRAG SAYS DAVID VADEHRA PRESIDENT OF VIDEO STORYBOARD ENOUGH ALREADY MR VADEHRA SAYS THE PLUNGE IN THE BUD BOWL POPULARITY SHOULD BE MORE WORRISOME TO BUDWEISER SINCE IT IS BROADCAST ONLY ONCE A YEAR AND OBVIOUSLY DOESN'T BECOME ANNOYING BY MERE REPETITION LIKE OTHER ADS SUCH AS THE DURACELL BUNNY SPOTS EVEN ONCE EVERY 12 MONTHS IS TOO MUCH FOR THE BUD BOWL HE SAYS BUDWEISER DISAGREES AND SAYS THE BUD BOWL IS AS SUCCESSFUL AS EVER THIS PAST JANUARY THE ST LOUISBASED BREWER RECEIVED THREE MILLION RESPONSES IN A CONTEST WHERE VIEWERS HAD TO WRITE DOWN THE SCORE OF THE BUD BOWL QUARTERBYQUARTER THE REWARD 1 MILLION CLEARLY BUDWEISER IS HOPING FOR THE SAME RESULTS IN THE WORLD SERIES WHICH IS SCHEDULED TO BE BROADCAST ON THE CBS NETWORK STARTING OCT 16 BEGINNING NEXT MONTH DISPLAYS WILL APPEAR IN SUPERMARKETS AND CONVENIENCE STORES WITH GAME CARDS DURING THE MIDDLE OF THE SIXTH INNING IN EACH GAME OF THE BESTOFSEVEN SERIES A SOCALLED CLASSIC PLAY FROM A PAST BASEBALL GAME WILL BE SHOWN AT THIS POINT VIEWERS WILL BE INSTRUCTED TO WRITE DOWN THE PLAY WITH THE POSSIBILITY OF WINNING 100000 THE WATCHANDWIN CONTEST WILL BE BOLSTERED BY A MAJOR ADVERTISING CAMPAIGN FROM D'ARCY MASIUS BENTON & BOWLES THAT WILL BEGIN NEXT MONTH THE SOCALLED HYPE SPOTS WILL ENCOURAGE INDIVIDUALS TO RUSH TO THE STORE AND SNAP UP A GAME CARD THE SPOTS WHICH ARE CURRENTLY IN PRODUCTION WILL BEGIN AIRING DURING THE END OF THE MAJOR LEAGUE BASEBALL SEASON AND AGAIN DURING THE LEAGUE CHAMPIONSHIP SERIES MR OWENS OF BUDWEISER SAYS THERE WILL BE NO CELEBRITIES IN THESE COMMERCIALS UNLIKE THE BUD BOWL SPOTS WHICH FEATURED FORMER NEW YORK JETS QUARTERBACK TURNED COMMERCIAL SPOKESMAN JOE NAMATH AND LA LAW STAR CORBIN BERNSEN INSTEAD THE SPOTS WILL FEATURE A MAN STEPPING UP TO THE PLATE AND HITTING A BALL WHICH SLAMS INTO THE SCOREBOARD THE BALL IS CAUGHT BY A FAN AND THROUGH COMPUTER IMAGES TURNS INTO CASH THE BREWER REQUESTED THE CONTEST SPOT TO RUN IN THE MIDDLE OF THE SIXTH INNING SAYS MR OWENS BECAUSE IT'S NOT TOO LATE IN THE GAME AND IT'S A NATURAL BREAK BUDWEISER WON'T HAVE AN EXCLUSIVE ON BEER ADVERTISING DURING THE WORLD SERIES BUT ITS EXECUTIVES HARDLY CARE MR OWENS PROMISES SOMEWHAT OMINOUSLY YOU WON'T BE ABLE TO GO INTO A SUPERMARKET OR DELI WITHOUT BUMPING INTO ONE OF OUR DISPLAYS GREAT JUST BE GRATEFUL THE BUD BOWL CONCEPT IS CONFINED TO ONE GAME ONCE A YEAR IN ANOTHER ANHEUSERBUSCH MANEUVER THE BREWER SAID YESTERDAY IT WOULD INTRODUCE A SOCALLED ICE BEER ICE DRAFT UNDER ITS BUDWEISER BRAND BEGINNING OCT 4 ADVERTISING WILL BE DONE BY OMNICOM GROUP'S DDB NEEDHAM IN CHICAGO WHICH ALSO HANDLES BUD LIGHT BUD DRY BUSCH AND BUSCH LIGHT THE BEER WHICH BUDWEISER SAYS IS BREWED AT A COLDER TEMPERATURE TO CREATE ICE CRYSTALS WILL BE INTRODUCED IN 13 WESTERN STATES INITIALLY INCLUDING CALIFORNIA NEW MEXICO AND OREGON WITH NATIONAL DISTRIBUTION TO FOLLOW ICE DRAFT WILL GO HEADTOHEAD WITH MOLSON ICE WHICH PHILIP MORRIS'S MILLER BREWING IS TEST MARKETING UNDER THE MOLSON ICE LABEL IN GEORGIA AND MICHIGAN MATTEL INC EXECUTIVES SAID IT WAS TOO SOON TO TELL WHETHER MATTEL'S ACQUISITION OF FISHERPRICE INC WOULD AFFECT FISHERPRICE'S AGENCY OF 24 YEARS WARING & LAROSA NEW YORK FISHERPRICE BILLS AN ESTIMATED 40 MILLION ANNUALLY WE'LL BE ANALYZING THE ORGANIZATION A MATTEL SPOKESWOMAN SAID OF THE EAST AURORA NY TOY COMPANY IT'S PREMATURE TO SAY WHAT OUR PLANS ARE THIS YEAR MATTEL SAID PUBLICLY THAT IT WAS LOOKING FOR A THIRD SHOP TO HANDLE ADVERTISING FOR NEW PRODUCTS SUCH AS DEVELOPMENTAL SPORTS AND ARTS AND CRAFTS PLAYTHINGS THAT SEARCH WHICH MATTEL PUT ON HOLD SOME TIME AGO WAS UNRELATED TO THE PURCHASE OF FISHERPRICE SHE SAID SAUL WARING AGENCY VICE CHAIRMAN AND COCHIEF EXECUTIVE OFFICER SAID HE DIDN'T EXPECT MATTEL TO MOVE THE FISHERPRICE ACCOUNT FROM HIS AGENCY WHICH BILLS ABOUT 85 MILLION ANNUALLY WE LIVED THROUGH THE SPINOFF FROM QUAKER AND WE HAVE EVERY CONFIDENCE WE'LL LIVE THROUGH THIS HE SAID WHO'S NEWS WPP GROUP'S SCALI MCCABE SLOVES HIRED THE COPYWRITER AND ART DIRECTOR TEAM OF TY MONTAGUE AND MIKE FAZENDE AS EXECUTIVE VICE PRESIDENTS AND GROUP CREATIVE DIRECTORS ON SCALI'S BIG MERCEDESBENZ ACCOUNT MR MONTAGUE 30 YEARS OLD WAS PREVIOUSLY A VICE PRESIDENT AND ASSOCIATE CREATIVE DIRECTOR AT CHIAT/DAY NEW YORK MR FAZENDE 36 WAS AN ASSOCIATE CREATIVE DIRECTOR AT OMNICOM GROUP'S GOODBY BERLIN & SILVERSTEIN SAN FRANCISCO 9308200055 930820 BUSINESS BRIEF AETNA LIFE & CASUALTY CO PAYMENT OF 52 MILLION SET TO SETTLE KICKBACK CHARGES AETNA LIFE & CASUALTY CO AGREED IN BOSTON TO PAY 52 MILLION IN FINES AND RESTITUTION TO SETTLE CHARGES THAT IT MADE UNDISCLOSED KICKBACKS TO PUBLIC OFFICIALS WHO GUIDED STATE PENSION MONEY TO AETNA FOR MANAGEMENT THE AGREEMENT IN WHICH AETNA NEITHER ADMITTED NOR DENIED WRONGDOING SETTLED CIVIL ACTIONS BY THE US ATTORNEY'S OFFICE THE SECURITIES AND EXCHANGE COMMISSION AND THE MASSACHUSETTS ATTORNEY GENERAL THE 52 MILLION IS IN ADDITION TO 95 MILLION PAID TO VARIOUS MASSACHUSETTS AND RHODE ISLAND PUBLIC EMPLOYEE RETIREMENT FUNDS BY AETNA AND TWO SUBSIDIARIES A COMPANY SPOKESMAN SAID HE EXPECTED NO MATERIAL AFFECT ON EARNINGS AS A RESULT OF THE LATEST SETTLEMENT HE SAID THE COMPANY HAS FULLY COOPERATED WITH THE INQUIRIES AND CALLED THE MATTER A SINGLE ISOLATED INCIDENT AETNA AND LAW ENFORCEMENT OFFICIALS SAID THE SETTLEMENT ENDS AETNA'S INVOLVEMENT IN THE CASE 9308200054 930820 BUSINESS BRIEF LORAL CORP MCDONNELL DOUGLAS AWARDS CONTRACTS FOR 1335 MILLION LORAL CORP NEW YORK SAID ITS LORAL AERONUTRONIC DIVISION RECEIVED TWO CONTRACTS TOTALING 1335 MILLION FROM MCDONNELL DOUGLAS CORP'S MCDONNELL DOUGLAS AEROSPACE FOR NITE HAWK FORWARDLOOKING INFRARED TARGETING PODS FOR THE F/A18 AIRCRAFT THE LARGER CONTRACT VALUED AT 112 MILLION CALLS FOR LORAL A HIGHTECHNOLOGY DEFENSE ELECTRONICS COMPANY TO PRODUCE 40 NITE HAWK PODS THAT WILL PROVIDE THE F/A18 AIRCRAFT WITH THE AUTONOMOUS CAPABILITY FOR PRECISION TARGETING AND DELIVERY OF LASERGUIDED MUNITIONS DURING DAY AND NIGHT ATTACK MISSIONS THE OTHER AWARD IS A 215 MILLION ENGINEERING AND MANUFACTURING DEVELOPMENT CONTRACT FOR FIVE NITE HAWK POD AFTSECTION SUBASSEMBLIES FOR THE F/A18 E/F HORNET UNDER THIS CONTRACT LORAL WILL PERFORM PODTOAIRCRAFT STRUCTURAL INTERFACE CHANGES TO ACCOMMODATE THE NITE HAWK TO THE NEXTGENERATION NAVY FIGHTER AIRCRAFT 9308200053 930820 PROFITS POSTED BY 3 BIG FIRMS IN HONG KONG HUTCHISON CHEUNG KONG AND HANG SENG BANK DRAW MIXED REVIEWS BY CRAIG S SMITH STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG THREE OF HONG KONG'S BIGGEST COMPANIES DELIVERED MIXED EARNINGS REPORTS THAT ARE LIKELY TO DISCOURAGE INVESTORS IN HONG KONG'S STOCK MARKET HANG SENG BANK LTD POSTED WEAKERTHANEXPECTED PROFIT GROWTH FOR THE FIRST HALF RAISING CONCERNS THAT ITS PARENT HONGKONG & SHANGHAI BANKING CORP WILL DELIVER A SIMILAR DISAPPOINTMENT WHEN IT REPORTS INTERIM RESULTS NEXT WEEK HOWEVER LI KASHING'S GROUP CHEUNG KONG HOLDINGS LTD AND HUTCHISON WHAMPOA LTD TOOK THE EDGE OFF THE HANG SENG BANK NEWS WITH FAT PROFIT REPORTS AND ENCOURAGING OUTLOOKS THE EARNINGS REPORTS CAME AFTER FOUR DAYS OF RECORDBREAKING GAINS IN THE COLONY'S STOCK MARKET WHICH HAS DEFIED FORECASTS THAT CHINA'S EFFORTS TO COOL ITS ECONOMY WILL DAMP GROWTH IN HONG KONG THAT RALLY MAY NOW BE OVER MARKET WATCHERS SAY BUT NOT BECAUSE OF ANY NEWS FROM NORTH OF THE BORDER HANG SENG BANK WILL CERTAINLY DISAPPOINT THE MARKET SAYS RAVI NARAIN DIRECTOR OF RESEARCH AT PEREGRINE BROKERAGE LTD THE STOCKS OF BOTH HONGKONG BANK AND HANG SENG BANK FELL SHARPLY IN LONDON IN RESPONSE TO THE REPORT AND BOTH ARE EXPECTED TO OPEN LOWER ON THE HONG KONG STOCK EXCHANGE TODAY HANG SENG SAID ITS EARNINGS GREW JUST 175 IN THE FIRST HALF WELL BELOW WIDESPREAD MARKET EXPECTATIONS FOR GROWTH OF 20 OR MORE IN THE FIRST SIX MONTHS THE BANK EARNED HK275 BILLION US3548 MILLION OR HK142 A SHARE UP FROM HK234 BILLION OR HK121 A SHARE A YEAR EARLIER OPERATING EARNINGS GREW EVEN LESS BECAUSE HK2589 MILLION OF THE HK4088 MILLION INCREASE CAME FROM THE SALE OF WING ON BANK HANG SENG BANK WAS TIGHTLIPPED ABOUT THE DISAPPOINTMENT BUT THE FINANCIAL COMMUNITY WAS QUICK TO SPECULATE THAT IT HAD MADE PROVISIONS FOR MORE OF ITS LOANS TO OLYMPIA & YORK DEVELOPMENTS LTD THE TROUBLED CANADIAN REAL ESTATE CONCERN IF SO HONGKONG BANK MIGHT FOLLOW WITH AN EVEN BIGGER PROVISION OF ITS OWN ANALYSTS SAY LAST YEAR A DISAPPOINTING EARNINGS REPORT FROM HANG SENG BANK FORESHADOWED HONGKONG BANK'S US390 MILLION PROVISION WHICH REPRESENTED ABOUT 60 OF THE BANK'S EXPOSURE TO OLYMPIA & YORK HANG SENG BANK'S HALFYEAR RESULTS LAST YEAR ALSO INCLUDED A PROVISION OF ABOUT US60 MILLION AGAINST ITS US100 MILLION EXPOSURE TO THE REAL ESTATE COMPANY BUT THE PROVISION WASN'T DETAILED IN THE RESULTS WHICH TRADITIONALLY PRECEDE HONGKONG BANK'S INTERIM REPORT ANALYSTS SAY ANOTHER PLAUSIBLE EXPLANATION FOR HANG SENG BANK'S DISAPPOINTING EARNINGS GROWTH COULD BE A SLOWDOWN IN THE DOMESTIC BANKING BUSINESS SOMETHING THAT WOULD ALSO BE REFLECTED IN HONGKONG BANK'S IMPENDING RESULTS MORTGAGE LENDING IN HONG KONG DROPPED SHARPLY LATE LAST YEAR AMID GROWING TENSIONS BETWEEN CHINA AND BRITAIN AND DIDN'T PICK UP AGAIN UNTIL THE SECOND QUARTER OF THIS YEAR IN FACT HANG SENG BANK'S ASSETS GREW ONLY 22 IN THE LATEST PERIOD THE BANK ATTRIBUTED THE SLOW ASSET GROWTH TO ITS DECISION NOT TO COMPETE AGGRESSIVELY FOR DEPOSIT FUNDS IN THE FIRST HALF OF THE YEAR MR LI'S GROUP MEANWHILE DIDN'T DISAPPOINT ANYONE CHEUNG KONG'S AFTERTAX PROFIT IN THE FIRST HALF VAULTED 94 TO HK453 BILLION US5845 MILLION OR HK206 A SHARE FROM HK233 BILLION OR HK106 A SHARE A YEAR AGO THE LATEST PERIOD INCLUDES A HK708 MILLION GAIN FROM TWO SERIES OF WARRANTS ISSUED BY CHEUNG KONG LAST YEAR THE WARRANTS FOR THE PURCHASE OF HUTCHISON SHARES WERE EITHER EXERCISED OR EXPIRED IN MARCH AND MAY OF THIS YEAR FIRSTHALF EARNINGS AT HUTCHISON WHICH IS 42OWNED BY CHEUNG KONG TOTALED HK252 BILLION 3252 MILLION OR 74 HONG KONG CENTS A SHARE AGAINST A LOSS IN THE YEAREARLIER PERIOD HUTCHISON LOST HK78 MILLION OR THREE HONG KONGCENTS A SHARE IN LAST YEAR'S FIRST HALF BECAUSE OF MASSIVE WRITEOFFS FOR 49OWNED HUSKY OIL LTD HUSKY TURNED A PROFIT IN THE FIRST SIX MONTHS OF THIS YEAR SEPARATELY MR LI SAID THAT HUTCHISON WOULD POST A SECONDHALF GAIN OF ABOUT HK15 BILLION FROM LAST MONTH'S SALE TO NEWS CORP OF A CONTROLLING STAKE IN STARTV A SATELLITE BROADCASTING COMPANY HALFOWNED BY HUTCHISON AND HALF BY THE LI FAMILY HUTCHISON RETAINS AN 18 INTEREST IN STARTV MR NARAIN EXPECTS HUTCHISON TO EARN HK615 BILLION FOR ALL OF 1993 BEFORE THE HK15 BILLION GAIN FROM THE STARTV SALE FOR 1994 HE EXPECTS HUTCHISON TO EARN HK728 BILLION IF THERE'S A SALE OF UK TELECOM THAT'S JUST A BONUS SAYS MR NARAIN INVESTORS' EXPECTATIONS THAT CHEUNG KONG AND HUTCHISON WOULD REPORT HIGH INTERIM EARNINGS PUSHED THE HANG SENG INDEX UP 4429 POINTS THURSDAY TO 760526 ITS FIRST CLOSE ABOVE 7600 HOWEVER WEAKNESS IN THE STOCKS OF HONGKONG BANK AND HANG SENG BANK ARE EXPECTED TO DOMINATE THE MARKET TODAY HONGKONG BANK IS THE COLONY'S BIGGEST COMPANY ACCOUNTING FOR ABOUT 15 OF THE HANG SENG INDEX HANG SENG BANK ACCOUNTS FOR ABOUT 9 OF THE BLUECHIP INDEX CHEUNG KONG AND HUTCHISON TOGETHER ACCOUNT FOR A LITTLE MORE THAN 10 OF THE INDEX 9308200052 930820 WORLD MARKETS TOKYO SHARES DROP AS ECONOMIC MEETING YIELDS LITTLE NEWS LONDON STOCKS FALL TO PROFITTAKING A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS WEAKENED THURSDAY ON DISAPPOINTMENT THAT A SPECIAL JAPANESE ECONOMICPOLICY MEETING FAILED TO PRODUCE ANY FRESH STIMULUS MEASURES IN LONDON PRICES RETREATED ON PROFITTAKING WHILE THE FRANKFURT MARKET'S MAIN INDEX ROSE TO A THREEYEAR HIGH DESPITE A MIXED FINISH WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11100 DOWN 177 REFLECTING DECREASES IN ASIA/PACIFIC AND EUROPEAN MARKETS AND A RISE IN AMERICAN MARKETS OILFIELD EQUIPMENT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 12215 UP 384 OR 33 WITH BAKER HUGHES OF THE US POSTING A 52 GAIN IN ITS LOCAL CURRENCY FISHING STOCKS TRAILED AT 9692 DOWN 477 OR 47 WITH SANFORD OF NEW ZEALAND SLIDING 18 IN LOCAL CURRENCY A SPECIAL MEETING OF JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA'S ECONOMIC MINISTERS FAILED TO EXCITE THE MARKET THE NIKKEI STARTED TO SLIDE EARLY IN THE AFTERNOON THURSDAY AFTER PLAYERS INTERPRETED THE MEETING AND REMARKS BY OTHER OFFICIALS AFTER THE MEETING AS LARGELY NEUTRAL MANY IN THE MARKET HAD HOPED FOR BETTER DETAILS ON HOW THE GOVERNMENT MIGHT FIND WAYS TO STIMULATE THE ECONOMY AND CURB THE PACE OF THE JAPANESE YEN'S RISE BUT THE GOVERNMENT OFFERED LITTLE FRESH ACTION ON THE ECONOMY INSTEAD IT APPEARED THE GOVERNMENT'S EFFORTS WILL FOCUS ON FULLY IMPLEMENTING THE FISCAL STIMULUS PACKAGE ANNOUNCED IN APRIL AND EASING REGULATIONS AS WELL AS OTHER STEPS TO SPREAD THE BENEFITS OF THE YEN'S RECENT APPRECIATION IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100 INDEX DROPPED 81 POINTS TO 30655 THE FT 30 INDEX LOST 116 TO 23945 VOLUME WAS 8369 MILLION SHARES COMPARED WITH 8871 MILLION THE PREVIOUS DAY THE MARKET ROSE EARLY REACHING ITS INTRADAY HIGH SHORTLY AFTER OPENING BUT ENSUING PROFITTAKING PULLED THE FTSE 100 DOWN AS LOW AS 30548 AT MIDDAY THE INDEX HELD THOSE LEVELS UNTIL RALLYING NEAR THE CLOSE BUOYED BY A FIRMING MARKET ON WALL STREET SHARES OF SEVERAL MAJOR PROPERTY COMPANIES FELL TO PROFITTAKING THE SECTOR HAS BEEN ONE OF THE BIGGEST GAINERS AMID SPECULATION ABOUT INTERESTRATE CUTS FOOD RETAILERS AND MANUFACTURERS CONTINUED TO BENEFIT FROM A GENERAL SHIFTING OF FUNDS INTO LAGGING GROWTH STOCKS FROM HIGHPRICED CYCLICAL SECTORS IN FRANKFURT PRICES FINISHED MIXED BUT THE MARKET'S BENCHMARK INDICATOR SET ANOTHER THREEYEAR HIGH THE DAX 30STOCK INDEX OF BLUECHIPS WHICH LEAPT 2555 POINTS WEDNESDAY ROSE 326 TO 193898 AN EARLYMORNING RALLY RAN OUT OF STEAM IN THE ABSENCE OF BUY ORDERS OTHER EUROPEAN MARKETS WERE MIXED WITH PROFITTAKING ERODING GAINS IN THE WAKE OF YESTERDAY'S SURGE ACROSS EUROPE IN PARIS STOCKS FELL 1 ERASING MOST OF THE PREVIOUS DAY'S STRONG GAINS WITHOUT SIGNIFICANT MARKETMOVING NEWS TRADERS FOUND IT DIFFICULT TO SUSTAIN THE MOMENTUM AS THE BOURSE APPROACHED RECORD HIGHS THE MARKET HAD OPENED STRONG IN REACTION TO BANK OF FRANCE'S SECOND CUT THIS WEEK IN THE 24HOUR LENDING RATE TO 825 FROM 875 IN AMSTERDAM PRICES CLOSED SLIGHTLY LOWER AS INVESTORS TOOK PROFITS FROM RECENT GAINS AHEAD OF TODAY'S EXPIRATION OF OPTIONS CONTRACTS FOOD AND BEVERAGE ISSUES CLOSED HIGHER AS DID PUBLISHING STOCKS IN MILAN STOCKS FELL ON PROFITTAKING AFTER A RALLY LED BY TELECOMMUNICATIONS STOCKS FIZZLED IN MADRID EQUITIES EDGED HIGHER ON SHARP GAINS IN A HANDFUL OF BLUECHIP STOCKS SHARES GOT OFF TO A ROARING START EASED AROUND MIDMORNING ON PROFITTAKING BUT RECOVERED GROUND IN THE AFTERNOON IN STOCKHOLM SHARES FINISHED LOWER IN A WIDELY FLUCTUATING MARKET ENDING A LONG WINNING STREAK THE DECLINE WAS LED BY BANK AND INSURANCE SHARES ALSO A STRONG HALFYEAR EARNINGS REPORT FROM TELECOMMUNICATIONS GROUP TELEFON AB LM ERICSSON LED TO SOME PROFITTAKING ASIAN AND PACIFIC MARKETS ALSO WERE MIXED IN SYDNEY PRICES SOARED ACROSS THE BOARD TO A NEW SIXYEAR HIGH ON SOLID GAINS IN MEDIA AND BANK ISSUES RISES IN US AND BRITISH STOCKS A STRONGER GOLD PRICE AND BETTERTHANEXPECTED RESULTS AT SOME COMPANIES COMBINED TO LIFT STOCKS IN HONG KONG STOCKS CLIMBED FOR THE FIFTH STRAIGHT SESSION TO ANOTHER RECORD HIGH WITH THE BLUECHIP HANG SENG INDEX FINISHING ABOVE 7600 FOR THE FIRST TIME THE MARKET HAS BEEN BULLISH IN ANTICIPATION OF EARNINGS ANNOUNCEMENTS FROM A FEW BLUECHIP COMPANIES HOWEVER AFTER THE MARKET CLOSED HANG SENG BANK POSTED WEAKERTHANEXPECTED PROFIT GROWTH FOR THE FIRST HALF OF THE YEAR RAISING CONCERNS THAT ITS PARENT HONGKONG & SHANGHAI BANKING WILL DELIVER A SIMILAR DISAPPOINTMENT WHEN IT REPORTS INTERIM RESULTS NEXT WEEK IN TAIPEI SHARES ENDED SLIGHTLY LOWER IN THIN TRADING DESPITE EASING OF POLITICAL TENSIONS IN THE RULING NATIONALIST PARTY'S 14TH PARTY CONGRESS WHICH RUNS THROUGH SUNDAY IN SEOUL PRICES SURGED 33 ON RUMORS RELATED TO SOUTH KOREAN CURRENCY REFORM AND IMPROVED RELATIONS WITH NORTH KOREA LARGE MANUFACTURING BANK AND SECURITIES ISSUES DOMINATED THE DAY'S BUYING CONSTRUCTION ISSUES WERE AMONG THE BIGGEST GAINERS ON RUMORS THAT THE GOVERNMENT WOULD ANNOUNCE MEASURES TO ENHANCE RELATIONS BETWEEN THE KOREAS CASH HAS BEEN FLOWING INTO THE STOCK MARKET AS THE GOVERNMENT TIGHTENS REGULATIONS AGAINST REAL ESTATE SPECULATION IN MANILA SHARES SLIPPED IN THIN TRADING ON PROFITTAKING IN SOME BLUE CHIP SHARES IN WELLINGTON SHARES JUMPED 32 IN EXTREMELY BUSY TRADING LED BY CONTINUING STRONG SUPPORT FOR FORESTRY AND RESOURCES CONCERN FLETCHER CHALLENGE WHICH REPORTED STRONG EARNINGS ON WEDNESDAY AMONG CORPORATE DEVELOPMENTS IN FRANKFURT MANNESMANN DROPPED 83 MARKS OR 24 TO 33320 MARKS 19839 THE INDUSTRIAL GROUP HAD A NET LOSS OF 467 BILLION MARKS 27806 BILLION IN THE FIRST HALF COMPARED WITH NET INCOME OF 15 MILLION MARKS A YEAR EARLIER 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 MANNESMANN AG A GERMAN INDUSTRIAL CONCERN HAD A NET LOSS OF 467 MILLION MARKS 2781 MILLION IN THE FIRST HALF OF 1993 IN FRIDAY'S WORLD MARKETS COLUMN THE AMOUNTS WERE MISSTATED AS BILLIONS 9308200051 930820 REVIEW & OUTLOOK EDITORIAL JUVENILE INJUSTICE THE MURDER OF JAMES JORDAN FATHER OF BASKETBALL SUPERSTAR MICHAEL JORDAN OFFERS AN AWFULLY CLEAR PICTURE OF WHAT'S WRONG WITH THIS COUNTRY'S SYSTEM OF SOCALLED JUVENILE JUSTICE ACCORDING TO NORTH CAROLINA POLICE MR JORDAN WAS KILLED BY TWO 18YEAROLDS WHO CAME UPON HIS LEXUS PARKED OFF A HIGHWAY EARLY IN THE MORNING OF JULY 23 POLICE BELIEVE THEY SHOT MR JORDAN WHO WAS ASLEEP IN THE FRONT SEAT DROVE AWAY IN THE CAR AND DUMPED HIS BODY IN A CREEK WHERE IT WAS FOUND DOWNSTREAM IN SOUTH CAROLINA SOME DAYS LATER THE YOUTHS WERE CAUGHT AFTER POLICE TRACED CALLS THEY MADE ON THE CAR PHONE TO A 900 PORN NUMBER NEEDLESS TO SAY THIS ISN'T THE FIRST TIME EITHER DANIEL GREEN OR LARRY DEMERY HAVE BEEN ARRESTED BOTH HAVE A VIOLENT HISTORY DEMERY HAS FACED 14 CHARGES SINCE SEPTEMBER 1991 A MONTH AFTER HE TURNED 16 THE AGE YOUTHS CAN BE TRIED AS ADULTS IN NORTH CAROLINA HIS RECORD INCLUDES A YEAR'S PROBATION FOR BREAKING AND ENTERING OTHER CHARGES AMONG THEM ARMED ROBBERY AND ASSAULT WITH A DEADLY WEAPON FORGERY BREAKING AND ENTERING LARCENY ARE STILL PENDING IN DECEMBER HE WAS INDICTED FOR ALLEGEDLY ATTACKING A 61YEAROLD WOMAN WITH A CINDER BLOCK AND STEALING HER CASH AND VALUABLES GREEN'S BACKGROUND IS EQUALLY UNSAVORY HE WAS PAROLED TWO MONTHS AGO AFTER SERVING TWO YEARS OF A SIXYEAR SENTENCE FOR ATTACKING A FELLOW STUDENT WITH AN AX HE WAS ONLY 15 AT THE TIME WHICH MEANT THAT A JUDGE MUST HAVE THOUGHT HE WAS A BAD ENOUGH CASE TO TRY AS AN ADULT A LOCAL NEWSPAPER REPORTS THAT WHEN HE WAS EVEN YOUNGER HE WAS SUSPENDED FROM JUNIOR HIGH SCHOOL FOR ASSAULTING THE PRINCIPAL DO DEMERY'S AND GREEN'S CRIMINAL RECORDS GO BACK FARTHER AS SEEMS LIKELY WE'LL NEVER KNOW SINCE NORTH CAROLINA LIKE VIRTUALLY EVERY OTHER STATE SEALS JUVENILE RECORDS IT'S WELLESTABLISHED THAT MOST VIOLENT CRIMES ARE COMMITTED BY REPEAT OFFENDERS RICHARD TOWNSEND THE ROBESON COUNTY DISTRICT ATTORNEY WHO IS PROSECUTING DEMERY AND GREEN SOUNDS LIKE MOST DAS WHEN HE SAYS MOST OF OUR BUSINESS IS REPEAT BUSINESS UNDER THE LAW HE DOESN'T KNOW WHETHER DEMERY AND GREEN HAVE JUVENILE RECORDS BUT HE EXPRESSES GREAT FRUSTRATION ABOUT THE JUVENILE JUSTICE SYSTEM IN GENERAL YOU GET TO KNOW THESE KIDS ON FIRSTNAME BASIS HE SAYS THEY AGE OUT JUVENILE COURT AND COME INTO ADULT COURT THEN THEY GO TO PRISON AND ARE LET OUT AND ARE RIGHT BACK OUT ON THE STREET COMMITTING THE SAME CRIMES WHEN THE CURRENT SYSTEM OF JUVENILE JUSTICE WAS SET UP IN THE 1960S JUVENILE OFFENSES WERE LIKELY TO BE SHOPLIFTING OR JOYRIDING NOT MURDER OR ASSAULT OR RAPE ITS COMMENDABLE AIM WAS TO GIVE IMMATURE OFFENDERS A CHANCE TO REFORM THE TRAGEDY OF THE SYSTEM HOWEVER IS THAT IT HAS INSTEAD TAUGHT JUVENILES THAT THEY CAN GET AWAY WITH VIOLENCE TODAY PROSECUTORS RARELY BOTHER TO CHARGE JUVENILE SHOPLIFTERS SO BUSY ARE THEY WITH THE MURDERERS AND THE MUGGERS YET UNDER THE NOWENTRENCHED SYSTEM YOUNG OFFENDERS NO MATTER HOW HEINOUS THE CRIME SELDOM GET MORE THAN PROBATION OR A SENTENCE OF A YEAR OR TWO NORTH CAROLINA LAW FOR EXAMPLE MANDATES THAT A JUVENILE MUST BE RELEASED FROM JAIL WHEN HE TURNS 18 NO MATTER WHAT HE DID AND BECAUSE JUVENILE RECORDS ARE SECRET REPEAT JUVENILE OFFENDERS AND JUVENILES WHO REACH ADULTHOOD WITH A CRIMINAL PAST CAN APPEAR BEFORE A JUDGE AS FIRSTTIME OFFENDERS WHAT ALL THIS MEANS IS THAT IT'S NOT UNTIL HE'S WELL ENTRENCHED IN A LIFE OF CRIME THAT A VIOLENCEPRONE YOUTH FIRST GETS THE MESSAGE THAT CRIME DOESN'T PAY THIS IS A LESSON THAT NEEDS TO BE LEARNED LONG BEFORE A KID REACHES THE AGE OF 16 OR 17 OR 18 CRIMINOLOGIST JAMES Q WILSON BELIEVES THAT EVEN 12 IS TOO LATE A CHILD'S MORAL SENSE NEEDS TO BE DEVELOPED BEFORE THE CONFUSING ONSLAUGHT OF PUBERTY HOW TO DO THAT IS THE DIFFICULT QUESTION THAT NEEDS TO BE ADDRESSED IF WE WANT TO CHECK THE GROWING VIOLENCE AMONG THE YOUNG THE MAIN CHALLENGE IS TO CREATE DISCIPLINED NURTURING ENVIRONMENTS FOR VIOLENCEPRONE BOYS MANY OF WHOM COME FROM POOR FATHERLESS FAMILIES IT WILL REQUIRE A RETHINKING NOT ONLY OF THE JUVENILE JUSTICE SYSTEM WHICH NEEDS TO BE SWIFTER AND SURER AND TOUGHER BUT ALSO OF THE FOSTERCARE AND ADOPTION SYSTEMS WHICH CAN BOUNCE PROBLEM CHILDREN IN AND OUT OF FAMILIES AND INSTITUTIONS FOR YEARS PUBLIC BOARDING SCHOOLS FOR BOYS MIGHT HELP AS MIGHT A MODERN VERSION OF THE REFORM SCHOOL SO FAR THERE'S A LOT OF TALK FROM PRESIDENT CLINTON AND ATTORNEY GENERAL RENO ABOUT GRAPPLING WITH THE ROOT CAUSES OF CRIME THROUGH MORE SOCIAL SPENDING YET WHILE WE'VE BEEN CHASING A ROOTCAUSES STRATEGY SINCE THE '60S THE NUMBER OF JUVENILE ARRESTS FOR VIOLENT CRIME TRIPLED BETWEEN 1965 AND 1990 LARRY DEMERY AND DANIEL GREEN WERE LED AWAY IN LEG IRONS AT THEIR ARRAIGNMENT THIS WEEK AFTER BEING CHARGED WITH THE FIRSTDEGREE MURDER OF JAMES JORDAN ARMED ROBBERY AND CONSPIRACY MICHAEL JORDAN'S FAMILY IS NOW EXPERIENCING THE DEEP GRIEF VISITED ON INNUMERABLE FAMILIES BY JUVENILE THUGS FOR THEM THE WHEEL OF JUSTICE IS CLEARLY BROKEN AND OUGHT TO BE FIXED 9308200050 930820 BUSINESS BRIEF AUTODESK INC NET IN 2ND PERIOD ROSE 56 AIDED BY STRONG WORLD SALES AUTODESK INC CITING STRONG WORLD SALES OF ITS FLAGSHIP DRAFTING PROGRAM REPORTED A 56 INCREASE IN FISCAL SECONDQUARTER NET INCOME THE RESULTS WERE ANNOUNCED AFTER THE CLOSE OF STOCK MARKET TRADING IN OVERTHECOUNTER TRADING YESTERDAY AUTODESK FELL 1625 OR 38 TO 41375 THE SAUSALITO CALIF SOFTWARE CONCERN SAID NET IN THE QUARTER ENDED JULY 31 WAS 165 MILLION OR 65 CENTS A SHARE COMPARED WITH 106 MILLION OR 43 CENTS A SHARE A YEAR AGO REVENUE GREW 21 TO 1036 MILLION FROM 855 MILLION THE RESULTS WERE IN LINE WITH EXPECTATIONS OF ANALYSTS WHOSE MEAN ESTIMATE OF PERSHARE PROFIT WAS 65 CENTS AS CALCULATED BY ZACKS INVESTMENT RESEARCH INC AUTODESK ATTRIBUTED ITS STRONG RESULTS TO GROWTH IN SALES OF AUTOCAD ITS DRAFTINGANDDESIGN PROGRAM REVENUE IN AUTODESK'S ASIA/PACIFIC AND AMERICAS REGIONS WAS PARTICULARLY STRONG 9308200049 930820 TECHNOLOGY & HEALTH MAXTOR ALLIED WITH HYUNDAI STOCK SURGES BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL MAXTOR CORP BLOODIED BY PRICE WARS IN THE COMPUTER DISKDRIVE MARKET SAID IT AGREED TO SELL A 40 STAKE IN THE COMPANY TO SOUTH KOREA'S HYUNDAI ELECTRONICS INDUSTRIES CO THE SAN JOSE CALIF DISKDRIVE MAKER SAID IT SIGNED A LETTER OF INTENT FOR HYUNDAI TO PAY 150 MILLION FOR 194 MILLION NEWLY ISSUED MAXTOR SHARES THE DEAL WORKS OUT TO 773 A SHARE A 44 PREMIUM OVER THE STOCK'S CLOSING PRICE WEDNESDAY THE PROPOSED SALE SPARKED A 26 RUNUP IN THE PRICE OF MAXTOR'S SHARES WHICH CLOSED AT 675 UP 1375 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY AFTER SIX MONTHS OF BRUTAL PRICE WARS AMONG DISKDRIVE MAKERS WHICH SUPPLY THE DEVICES USED TO STORE DATA IN PERSONAL COMPUTERS A FINANCIALLY WEAKENED MAXTOR WAS LEFT WITH LITTLE CHOICE BUT TO SEEK A QUICK CASH INFUSION ANALYSTS SAID IT WAS A SALVATION MOVE FOR THEM SAID ANALYST STEVEN OSSAD OF COWEN & CO IT KEEPS PERHAPS THE WEAKEST PLAYER IN THE GAME MAXTOR POSTED NET LOSSES IN THE LAST TWO QUARTERS REPORTING A LOSS OF 722 MILLION IN ITS FISCAL FIRST QUARTER ENDED JUNE 28 A YEAR EARLIER IT HAD PROFIT OF 285 MILLION THE COMPANY IS EXPECTED TO POST NET LOSSES FOR SEVERAL MORE QUARTERS THIS MONTH ITS STOCK FELL TO AS LOW AS 4375 22 OF ITS HIGH OF 19625 IN DECEMBER WHEN THE INDUSTRY WAS ENJOYING FATTER PROFITS BECAUSE OF DISKDRIVE SHORTAGES BASED ON MAXTOR'S CONTINUING LOSSES EVEN IF INDUSTRY CONDITIONS DIDN'T GET ANY WORSE TWO TO FOUR QUARTERS FROM NOW THEY WOULDN'T HAVE BEEN ABLE TO MEET THEIR ONGOING CAPITAL REQUIREMENTS SAID ANALYST TODD KOFFMAN OF DEAN WITTER REYNOLDS UNDER THE AGREEMENT HYUNDAI WILL GET THE BOARD CHAIRMAN'S SEAT BUT ITS EXECUTIVES WON'T BE INVOLVED IN MAXTOR'S DAYTODAY OPERATIONS SAID LAWRENCE HOOTNICK MAXTOR'S CHIEF EXECUTIVE OFFICER THE COMPANIES ARE TRYING TO DEFINE AREAS OF POSSIBLE COOPERATION SUCH AS IN MARKETING MANUFACTURING AND TECHNOLOGY TRANSFER HE SAID THE CASH WHICH WILL BE USED AS WORKING CAPITAL WILL HELP MAXTOR KEEP UP ITS VITAL INVESTMENTS IN DEVELOPMENT OF NEW PRODUCTS MR HOOTNICK SAID MAXTOR HAD LOSSES EARLIER THIS YEAR IN PART BECAUSE OF PROBLEMS IN INTRODUCING NEW PRODUCTS TO REPLACE AN AGED PRODUCT LINE HE SAID AND A CASHPOOR MAXTOR COULDN'T WEATHER THE PROFITSLASHING PRICE WARS AS WELL AS DEEPERPOCKETED CALIFORNIA RIVALS SUCH AS PERIPHERALS INC OF SAN JOSE AND SEAGATE TECHNOLOGY INC OF SCOTTS VALLEY FOR HYUNDAI WHICH DOESN'T MAKE HARDDISK DRIVES THE DEAL COULD GIVE IT A LOWCOST PROVIDER OF DISK DRIVES FOR ITS PC BUSINESS AS WELL AS AN ADDITIONAL MARKETING FOOTHOLD IN THE US WE BELIEVE AN INVESTMENT IN MAXTOR IS A MAJOR STRATEGIC STEP IN DEVELOPING OUR GLOBAL TECHNOLOGICAL CAPABILITIES SAID CS PARK HYUNDAI SENIOR VICE PRESIDENT IN A STATEMENT UNDER THE AGREEMENT WHICH WOULD LEAVE MAXTOR WITH 49 MILLION SHARES OUTSTANDING HYUNDAI MAY NOT ACQUIRE MORE THAN 45 OF MAXTOR EXCEPT IN A TENDER FOR ALL SHARES OUTSTANDING THE DEAL WHICH MAXTOR EXPECTS TO CLOSE IN NOVEMBER IS SUBJECT TO APPROVAL OF THE US AND SOUTH KOREAN GOVERNMENTS AMONG OTHER CONDITIONS 9308200048 930820 MARKETING BRIEF NEW YORK TIMES CO ANTITRUST OFFICIALS APPROVE ACQUISITION OF GLOBE PARENT THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION APPROVED A PLANNED ACQUISITION BY NEW YORK TIMES CO OF THE PARENT OF THE BOSTON GLOBE FOR 107 BILLION IN CASH AND STOCK AFTER WHAT A DEPARTMENT SPOKESWOMAN CALLED AN EXTENSIVE INVESTIGATION ANTITRUST OFFICIALS CONCLUDED THAT THE COMBINATION OF TWO OF THE LARGER NEWSPAPERS IN THE NORTHEAST WOULDN'T SUBSTANTIALLY LESSEN COMPETITION FOR READERS OR ADVERTISERS FEDERAL OFFICIALS SAID THERE ISN'T A SIGNIFICANT OVERLAP BETWEEN THE TWO PAPERS' CIRCULATIONS AND THAT ADVERTISERS VIEW THEM AS SERVING SEPARATE MARKETS THE SPOKESWOMAN SAID THE GLOBE IS OWNED BY AFFILIATED PUBLICATIONS INC THE ACQUISITION WAS ANNOUNCED IN JUNE 9308200047 930820 TECHNOLOGY & HEALTH WANG SUIT ALLEGES PATENT VIOLATION BY MICROSOFT CORP BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON WANG LABORATORIES INC ALLEGED PATENT INFRINGEMENT BY MICROSOFT CORP IN A LAWSUIT FILED IN FEDERAL COURT HERE WANG ALLEGES THAT MICROSOFT REDMOND WASH AND A SMALLER SOFTWARE MAKER WATERMARK SOFTWARE INC OF BURLINGTON MASS VIOLATED TWO WANG PATENTS AWARDED IN THE PAST YEAR IT WAS UNCLEAR WHAT SPECIFIC MICROSOFT OR WATERMARK PRODUCTS ARE ALLEGED TO HAVE INFRINGED ON WANG'S PATENTS ONE PATENT DESCRIBES OBJECT MANAGERS IN WHICH MODULAR SOFTWARE PROGRAMS OPERATE WITH CORRESPONDING STORED DATA THE OTHER ASSERTS RIGHTS TO A COMPOSITE PERSONAL COMPUTERBASED DOCUMENT SCANNER AND PROCESSOR RELATED TECHNOLOGIES ARE GAINING WIDESPREAD USE IN THE COMPUTER INDUSTRY A MICROSOFT ATTORNEY SAID THE COMPANY IS STILL STUDYING WANG'S CHARGES AND WOULDN'T COMMENT WATERMARK ALSO WOULDN'T COMMENT LAST NIGHT PENDING A REVIEW OF THE LAWSUIT BUT A SPOKESWOMAN NOTED THAT NO SPECIFIC WATERMARK PRODUCTS OR TECHNOLOGIES ARE CITED IN THE SUIT ONE PERSON FAMILIAR WITH CONTACTS BETWEEN THE COMPANIES SAID MICROSOFT AND WANG HAVE HAD PRELIMINARY TALKS THAT COULD LEAD TO A SETTLEMENT INVOLVING LICENSING OR PAYMENT BY MICROSOFT TO WANG A WANG SPOKESMAN DECLINED COMMENT THE LOWELL MASS COMPANY FILED THE SUIT JULY 30 BUT HAS ISSUED NO PUBLIC STATEMENTS WANG WHICH HAS SAID IT WILL EMERGE FROM BANKRUPTCY COURT PROTECTION THIS FALL OFTEN AND SUCCESSFULLY HAS SUED OTHER COMPUTER MAKERS OVER TECHNOLOGY PATENT INFRINGEMENTS THOUGH THE BREADTH OF THE PATENTS NOW AT ISSUE REMAIN UNTESTED IN COURT THE SUIT SAYS THAT MICROSOFT MAKES USES AND SELLS PRODUCTS WHICH UTILIZE INVENTIONS CLAIMED IN THE PATENTS AND THAT IT IS ACTIVELY INDUCING OTHERS INCLUDING WATERMARK TO VIOLATE THE PATENTS IT SEEKS TO ENJOIN THE TWO COMPANIES FROM SELLING THE ALLEGEDLY INFRINGING PRODUCTS AND ASKS FOR UNSPECIFIED TREBLE DAMAGES THE TITLES OF THE PATENTS CITED IN THE FOURPAGE FEDERAL COMPLAINT WERE INTEGRATION OF DATA BETWEEN TYPED OBJECTS BY MUTUAL DIRECT INVOCATION BETWEEN OBJECT MANAGERS CORRESPONDING TO OBJECT TYPES ISSUED APRIL 27 AND COMPOSITE DOCUMENT ACCESSING AND PROCESSING TERMINAL WITH GRAPHIC AND TEXT DATA BUFFERS ISSUED TO WANG BY THE PATENT OFFICE ON JULY 7 1992 SEPARATELY WANG SAID IT RECEIVED 40 MILLION IN INTERIM FINANCING FROM CONGRESS FINANCIAL CORP TO HELP IT EMERGE FROM BANKRUPTCYLAW PROTECTION FOLLOWING WANG'S EMERGENCE CONGRESS WOULD PROVIDE A PERMANENT LINE OF CREDIT OF AS MUCH AS 30 MILLION C HALL SWAIM THE ATTORNEY FOR WANG'S CREDITORS SAID THE AGREEMENT WHICH HAD BEEN EXPECTED OFFERED VERY ATTRACTIVE TERMS THAT WILL SATISFY WANG'S CAPITAL NEEDS CONGRESS FINANCIAL IS A SUBSIDIARY OF CORESTATES FINANCIAL CORP OF PHILADELPHIA WANG FILED FOR CHAPTER 11 PROTECTION FROM CREDITORS LAST YEAR AFTER HUGE LOSSES AND DECLINING REVENUE IN A DRASTIC RESTRUCTURING THE COMPANY HAS SLASHED ITS WORK FORCE TO ABOUT 6000 FROM A 1988 PEAK OF 31500 AND HAS VIRTUALLY ABANDONED COMPUTER MANUFACTURING TO FOCUS ON SOFTWARE AND SERVICES 9308200046 930820 AT&T MCCAW DEAL COULD SPUR OTHERS BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL THE PLANNED 126 BILLION MERGER OF MCCAW CELLULAR COMMUNICATIONS CO AND AMERICAN TELEPHONE & TELEGRAPH CO IS LIKELY TO SHOCK MORE TELEPHONE COMPANIES AND CABLE TV OPERATORS INTO DEALS AND ALLIANCES OF THEIR OWN THAT'S THE VIEW OF MANY WALL STREET INVESTMENT BANKERS WHO ARE BURNING UP THEIR PHONE LINES PITCHING IDEAS TO THEIR CLIENTS AS WELL AS ANALYSTS AND INVESTORS TRYING TO GUESS THE NEXT TAKEOVER TARGETS STEVEN RATTNER A GENERAL PARTNER AT LAZARD FRERES & CO WHO ADVISED MCCAW ON THE AT&T DEAL PREDICTS THERE WILL BE QUITE A NUMBER OF DEALS OF VARIOUS SHAPES AND SIZES A WHOLE SLEW OF DIFFERENT THINGS PEOPLE CAN AND WILL BE DOING TWO MONTHS AGO COMMUNICATIONS MEGADEALS HAD ALREADY FUELED A 29 INCREASE IN MERGER ACTIVITY OVER THE 1992 LEVEL AFTER PLANS WERE ANNOUNCED FOR BRITISH TELECOMMUNICATIONS PLC TO PAY 43 BILLION FOR 20 OF MCI COMMUNICATIONS AND FOR U S WEST INC TO PAY 25 BILLION FOR A PIECE OF TIME WARNER INC'S ENTERTAINMENT BUSINESS COUNTING AT&TMCCAW US MERGER ACTIVITY THROUGH AUG 18 IS UP 64 FROM LAST YEAR'S LEVEL ACCORDING TO SECURITIES DATA CO THIS YEAR'S VOLUME OF 1328 BILLION COUNTING MINORITY STAKES IS THE BUSIEST SINCE THE RECORD YEAR OF 1989 WHEN 1993 BILLION WERE ANNOUNCED THROUGH AUG 18 SOME COMPETITIVE RESPONSES HAVE BEEN PERCOLATING SINCE AT&T ANNOUNCED PLANS TO BUY 33 OF MCCAW IN NOVEMBER BUT AT&T'S DECISION TO BUY THE ENTIRE COMPANY WAS A MAJOR WAKEUP CALL FOR REGIONAL PHONE COMPANIES THAT MIGHT PREVIOUSLY HAVE BEEN CONTENT MERELY TO DEFEND THEIR OWN TERRITORIES SAYS SALVATORE MUOIO AN ANALYST AT GABELLI & CO IN RYE NY WHAT COULD HAPPEN HERE ARE SOME OF THE TYPES OF DEALS THAT MAY HAPPEN NEXT THE SEVEN REGIONAL BELL COMPANIES ARE NOW LIKELIER TO TEAM UP WITH CABLE TV OPERATORS AS SOUTHWESTERN BELL CORP DID BY AGREEING TO BUY HAUSER COMMUNICATIONS INC BOTH BELL ATLANTIC CORP AND BELLSOUTH CORP ARE SAID TO BE DISCUSSING REASONABLY SIGNIFICANT CABLE DEALS MOST OF THE BABY BELLS ARE LOOKING AMERITECH IS SAID TO HAVE TALKED WITH VIACOM INTERNATIONAL INC BELLSOUTH IS SAID TO HAVE TALKED WITH CLOSELY HELD COX CABLE COMMUNICATIONS SOUTHWESTERN WHICH ALREADY HAS A JOINT VENTURE IN BRITAIN WITH COX IS SUPPOSED TO HAVE TALKED WITH BOTH VIACOM AND COX NONE OF THOSE COMPANIES WOULD COMMENT STOCKS OF MANY BIG CABLE OPERATORS HAVE DOUBLED OR TRIPLED DURING THE PAST YEAR AS THEIR POTENTIAL FUTURE ROLE IN TELECOMMUNICATIONS AND MULTIMEDIA HAS COME INTO SHARPER FOCUS AMONG THE BIGGEST MOVERS VIACOM COMCAST CORP AND ADELPHIA COMMUNICATIONS CORP CABLE OPERATORS HAVE ANOTHER MOTIVATION TO STRIKE DEALS THEY NEED CAPITAL TO UPGRADE THEIR SYSTEMS TO PROVIDE PHONE SERVICE THE BIGGEST QUESTION MARK IS HOW AT&T'S LONGDISTANCE RIVAL MCI WILL SPEND ITS 4 BILLION WAR CHEST FROM BRITISH TELECOM MCI HAS SAID IT MIGHT FORGE CELLULAR ALLIANCES WITH SOME OF THE BABY BELLS IT ALSO COULD HOOK UP WITH A GIANT LIKE TELECOMMUNICATIONS INC THE LARGEST CABLE OPERATOR A HANDFUL OF BABY BELLS WHICH ALREADY OWN CELLULAR PROPERTIES MIGHT POOL THEM IN SOME INVESTMENT BANKERS' DREAMS POSSIBLY WITH GTE CORP THE NO 2 US CELLULAR OPERATOR SIX OF THE SEVEN BELLS HAVE ALREADY TEAMED UP WITH GTE TO MARKET CELLULAR SERVICES BUT THEY STILL NEED A LONGDISTANCE CONNECTION PACIFIC TELESIS ALREADY PLANS TO SPIN OFF ITS CELLULAR HOLDINGS IN EARLY 1994 FREEING THEM TO BE ACQUIRED INDEPENDENTLY NEXTEL COMMUNICATIONS WHOSE WIRELESS TECHNOLOGY RESEMBLES CELLULAR COULD ATTRACT OFFERS FROM MCI OR OTHER BIG PLAYERS NEXTEL STOCK HAS MORE THAN DOUBLED FROM ITS INITIAL OFFERING PRICE IN JANUARY 1992 AND IS UP 13 SINCE MONDAY BUT COMCAST CORP OWNS 34 OF ITS STOCK AND MAY NOT WANT TO SELL ALSO NEXTEL HAS A HEFTY 23 BILLION MARKET VALUE SPRINT CORP WHICH LAST YEAR ACQUIRED CENTEL CORP TO BECOME THE ONLY COMPANY WITH LOCAL CELLULAR AND LONGDISTANCE OPERATIONS LOOKS AS IF IT COULD USE A PARTNER ITS BALANCE SHEET IS RELATIVELY WEAK HANDICAPPING IT AS AN ACQUIRER MY GUESS IS SPRINT DOES A DEAL SAID ONE INVESTMENT BANKER A SPRINT SPOKESMAN SAID THE COMPANY IS ALWAYS LOOKING AT OPPORTUNITIES MARK ROBICHAUX CONTRIBUTED TO THIS ARTICLE 9308200045 930820 CORRECTIONS & AMPLIFICATIONS ABOUT A THIRD OF THE WASTE COLLECTED FOR RECYCLING IN SEATTLE IS COMPOSED OF NEWSPRINT A PAGEONE ARTICLE AUG 3 INCORRECTLY SAID THE ONETHIRD WAS NEWSPRINT'S SHARE OF THE CITY'S ENTIRE WASTE COLLECTION SYMPHONY PHARMACEUTICALS INC NAMED MICHAEL E LEWIS VICE PRESIDENT RESEARCH HE HAD BEEN SENIOR DIRECTOR OF SCIENTIFIC AFFAIRS AT CEPHALON INC AN ITEM WEDNESDAY INCORRECTLY REVERSED THOSE TITLES A CHART ACCOMPANYING THE ABREAST OF THE MARKET COLUMN AUG 9 CONTAINED INACCURATE DATA THE CHART ILLUSTRATING THE PERCENTAGE OF INDUSTRY GROUPS FALLING ABOVE BELOW OR MATCHING ANALYSTS' EARNINGS EXPECTATIONS SHOULD HAVE SHOWN THAT 49 OF GROUPS CAME IN ABOVE EXPECTATIONS 38 WERE BELOW AND 13 AS EXPECTED THE INCORRECT CHART SHOWED 42 OF GROUPS ABOVE EXPECTATIONS 33 BELOW AND 11 AS EXPECTED 9308200044 930820 DEAR MOM CLEAR MY CALENDAR BY CATHY RINDNER LABOR DAY IS AROUND THE CORNER AND SOME OF US ARE ALREADY BEMOANING SUMMER'S END BUT PARENTS HAVE A SPECIAL REASON TO DO SO THE END OF SUMMER MEANS THE START OF SCHOOL AND THESE DAYS PLANNING A YOUNG CHILD'S SCHEDULE TAKES ABOUT AS MUCH TIME AND SKILL AS FILLING OUT A TAX RETURN THE CHALLENGE IS NO LONGER FINDING ACTIVITIES TO FILL A CHILD'S DAY IT IS SAYING NO TO THE HUNDREDS OF OPTIONS AVAILABLE OUR MAILBOX BRIMS WITH BROCHURES URGING ME TO ENROLL OUR CHILDREN AGES THREE FIVE AND EIGHT IN EVERYTHING FROM COOKING TO MARTIAL ARTS I KEEP WAITING FOR SOME CLEVER SOUL TO COMBINE THE TWO INTO A SINGLE OFFERING CALLED KARATE IN THE KITCHEN AS AN EXERCISE IN FUN A GYMBOREE CLASS IS FINE BUT THE IMPLICATION IS THAT OUR CHILDREN WON'T BE JUST AS WELL SERVED BY TIME SPENT TOSSING A BALL READING TOGETHER OR RUNNING BREATHLESS IN THE PARK ONE COMPUTER COMPANY AIMS AT ANXIOUS PARENTS IN THE SAME INSIDIOUS WAY WITH MAGAZINE ADS THAT READ GIVE YOUR KIDS AN EDGE EDUCATORS ARE THEMSELVES DISMAYED BY THE NUMBER OF SPECIAL CLASSES THAT MANY CHILDREN ATTEND IN THE NAME OF ENRICHMENT THREEYEAROLDS NOT ONLY GO TO PRESCHOOL IN THE MORNING BUT STUDY FRENCH BALLET OR GYMNASTICS AFTER LUNCH ONE EXASPERATED TEACHER TELLS OF A FOURYEAROLD ASKING FOR HELP IN THE TOILET BEFORE TROTTING OFF TO TENNIS ANOTHER TEACHER SAYS THAT CHILDREN SOMETIMES CLING TO HER AT PICKUP TIME THEY DREAD GOING TO THE SAME COSTLY CLASSES FOR WHICH PARENTS HAD THEM WAITLISTED WEEKS BEFORE WHAT HAPPENED TO UNSTRUCTURED TIME A GENEROUS EXPLANATION IS THAT WE ENJOY GIVING CHILDREN OPPORTUNITIES WE NEVER HAD THE TRUTH HOWEVER IS THAT MANY PARENTS HAVE DOUBTS ABOUT HOW MUCH TIME THEY SPEND AWAY FROM THEIR FAMILIES AND ONE WAY TO ASSUAGE THIS GUILT IS TO BELIEVE THAT TIME SPENT IN THESE CLASSES IS SOMEHOW MORE BENEFICIAL TO CHILDREN THAN THE TIME WE KNOW WE SHOULD BE GIVING THEM OURSELVES PERHAPS IT IS TOO PAINFUL TO ADMIT HOW IMPORTANT WE ARE TO OUR CHILDREN THAT THEY WOULD RATHER SPEND TIME WITH US THAN WITH ANYONE ELSE IN THE WORLD DAVID ELKIND AN EXPERT ON CHILDREN HAS SUGGESTED THAT THE 1960S GAVE BIRTH TO THE NOTION THAT EARLIER IS BETTER STUDIES SHOWED THAT UNDERPRIVILEGED CHILDREN WHO WERE ENROLLED IN EARLYEDUCATION PROGRAMS DID AS WELL IN SCHOOL AS THEIR MORE AFFLUENT PEERS LINKING OF EARLY EXPERIENCE AND ABILITY BECAME KNOWN AS THE COMPETENTCHILD THEORY AND IT LED TO THE HEAD START PROGRAM AS MIDDLECLASS MOTHERS ENTERED THE WORK FORCE HOWEVER THE IDEA BEHIND HEAD START THAT EARLIER EXPOSURE WOULD HELP A POOR CHILD TO DO BETTER WAS USED AS PROOF THAT ALL CHILDREN WOULD BENEFIT FROM EARLY FORMAL LEARNING PARENTS HOPE THAT EARLY MUSIC LESSONS FOR EXAMPLE WILL BUILD A CHILD'S CONFIDENCE THE IRONY HOWEVER IS THAT ANY TIME CHILDREN ARE ASKED TO DO TOO MUCH TOO SOON THEY ARE AT GREATER RISK FOR FEELINGS OF FAILURE AND LOW SELFESTEEM A CHILD'S TIME DOES NOT HAVE TO BE PLANNED TO BE MEANINGFUL AND A TV SET IS NOT THE ONLY OPTION FOR UNSCHEDULED HOURS A VARIETY OF EXPERIENCES MUST PRECEDE A CHILD'S LEARNING TO READ OR HAVING THE CONFIDENCE TO TAKE UP A NEW SPORT PLAYING AT HOME AND GOING TO THE STORE OR TO A FRIEND'S HOUSE ARE MORE THAN ADEQUATE PLAYFIGHTING AND AGGRESSIVE GAMES ALSO SERVE A PURPOSE YOUNG CHILDREN'S DEMONS ARE NUMEROUS AND FREE PLAY IS ONE OF THE ONLY MEANS THEY HAVE OF CONQUERING FEAR IDLE TIME IN THE EARLY YEARS IS BECOMING A THING OF THE PAST REMEMBER THE LAZY DAYS OF SUMMER SOME CHILDREN STILL SLEEP LATE AND PLAY WITH THE KIDS ACROSS THE STREET UNTIL IT'S TIME TO COME HOME FOR DINNER BUT WITH THE MAJORITY OF MOTHERS WORKING AT LEAST PART OF THE WEEK FEWER CHILDREN ENJOY THAT LUXURY THE AMERICAN CAMPING ASSOCIATION SAYS THE NUMBER OF ACCREDITED DAY CAMPS HAS NEARLY DOUBLED SINCE 1972 WHEN MANY WOMEN BEGAN JUGGLING WORK AND FAMILY SOME SPECIALTY CAMPS HAVE CHILDREN SIGNING ONTO A COMPUTER INSTEAD OF SIGNING THEIR ARTWORK WE HEAR ABOUT DAYS THAT ARE AS CRAMMED AS A CORPORATE CEO'S EVEN LOWTECH CAMPS SKIMP ON LEISURE WE LEARNED THIS THE HARD WAY LAST JULY WHEN OUR DAUGHTER SPENT NEARLY TWO HOURS EACH DAY TRAVELING TO AND FROM A CAMP IN A WOODED SUBURB OF NEW YORK CITY BUT WHENEVER SHE STOPPED TO ENJOY THE LUSH SURROUNDINGS SHE WAS SCOLDED FOR MAKING THE GROUP LATE FOR THE NEXT ACTIVITY THEY CALLED ME A SPACE CADET SHE TOLD US INDIGNANTLY SO MUCH FOR INSTILLING A LOVE OF NATURE THE RACE WILL SPEED UP IN THE FALL COME SEPTEMBER CHILDREN ACROSS THE COUNTRY WILL FINISH A FULL DAY OF KINDERGARTEN COMPARED TO A HALFDAY WHEN WE WERE GROWING UP ONLY TO ATTEND AN AFTERSCHOOL PROGRAM UNTIL 6 PM WHEN A WORKING MOM OR DAD COMES TO TAKE THEM HOME THAT'S TOO MUCH CHANGE FOR A FIVEYEAR OLD FINANCES OF COURSE DO CONSTRAIN SOME PARENTS EVEN SO THE IMPULSE TO OVERSCHEDULE SEEMS TO CUT ACROSS SOCIAL AND ECONOMIC LINES POWER MOMS THE RIGHTEOUS AND SUPERORGANIZED STAYATHOMES DESCRIBED ON THIS PAPER'S FIRST PAGE RECENTLY CAN BE THE WORST SCHEDULING OFFENDERS BUT LET'S BE HONEST WITH OURSELVES OUR OWN BUSY SCHEDULES WHATEVER THEY INVOLVE ARE NO EXCUSE FOR BURDENING A YOUNG CHILD'S MS TEMPELSMAN'S BOOK CHILDWISE BREAKING THE PATTERNS THAT KEEP PARENTS AND CHILDREN APART WILL BE PUBLISHED NEXT YEAR BY WILLIAM MORROW 9308200043 930820 BUSINESS BRIEF SOLITRON DEVICES INC REORGANIZATION CONFIRMED NEW DIRECTORS ARE CHOSEN SOLITRON DEVICES INC SAID THE US BANKRUPTCY COURT IN MIAMI CONFIRMED ITS PLAN OF REORGANIZATION ALLOWING THE COMPANY TO EMERGE FROM CHAPTER 11 PROCEEDINGS SOLITRON BASED IN WEST PALM BEACH FLA MAKES SEMICONDUCTOR COMPONENTS AND OTHER DEVICES FOR THE AEROSPACE AND MILITARY MARKETS THE COMPANY SAID IT WILL HAVE A NEW BOARD AFTER THE REORGANIZATION THE DIRECTORS ARE ROBERT ADLER FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BIC CORP ROBERT PERFETTO PRESIDENT OF ESSEX PRODUCTS GROUP INC AND SHEVACH SARAF SOLITRON'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SOLITRON EXPECTS REVENUE FOR THE FISCAL YEAR ENDING FEB 28 1994 OF ABOUT 12 MILLION SOLITRON SAID IT HAS VIRTUALLY NO SECURED DEBT AFTER THE RESTRUCTURING AND THE RECEIPT OF AN INSURANCE CLAIM PAYMENT OF ABOUT 11 MILLION AS PART OF THE RESTRUCTURING SOLITRON COMPLETED THE SALE OF ITS MICROWAVE DIVISION IN MARCH 9308200042 930820 BUSINESS BRIEF YAMAICHI SECURITIES LTD FINAL DETAILS ARE DISCUSSED OF FINANCING FIRM'S BAILOUT YAMAICHI SECURITIES LTD IS CLOSE TO DECIDING THE DETAILS OF A BAILOUT OF ITS NONBANK FINANCING FIRM YAMAICHI FINANCE CO THE BROKERAGE HOUSE SAID YAMAICHI REAL ESTATE INC A REALESTATE MANAGEMENT AFFILIATE WITH SUBSTANTIAL UNREALIZED PROFITS COULD PROVIDE YAMAICHI FINANCE WITH ROUGHLY 80 BILLION YEN 7862 MILLION IN FUNDS AND BUY ROUGHLY 50 BILLION YEN OF REAL ESTATE THAT YAMAICHI FINANCE IS HOLDING AS COLLATERAL FOR SHAKY LOANS A SPOKESMAN SAID YAMAICHI FINANCE MAY ALSO PLACE ABOUT 10 BILLION YEN OF NEW SHARES WITH GROUP COMPANIES THE SPOKESMAN SAID HE SAID YAMAICHI SECURITIES MUST WORK OUT DETAILS WITH THE FINANCE MINISTRY ON TAX PROVISIONS FOR THE GROUP RESCUE BEFORE FINALIZING ANY PACKAGE BUT HE SAID A FINAL PLAN SHOULD BE READY SHORTLY YAMAICHI FINANCE IS HOLDING ROUGHLY 180 BILLION YEN IN PROBLEM LOANS 9308200041 930820 OFFICIALS IN TAIWAN ARE DETAINED IN PROBE OF ERICSSON CONTRACTS SPECIAL TO THE WALL STREET JOURNAL TAIPEI TAIWAN PROSECUTORS DETAINED EIGHT OFFICIALS FOR ALLEGEDLY TAKING PAYMENTS TO HELP A SWEDISH TELECOMMUNICATIONS COMPANY WIN CONTRACTS VALUED AT 226 MILLION OFFICIALS SAID KO CHINGNAN PROSECUTOR FOR THE TAIPEI DISTRICT COURT SAID THE TELECOMMUNICATIONS OFFICIALS WERE DETAINED WEDNESDAY PENDING FORMAL CHARGES OF GRANTING FAVORS TO SWEDEN'S TELEFON AB LM ERICSSON FOUR JUNIOR OFFICIALS WERE LATER RELEASED ON BAIL OF 200000 TAIWAN DOLLARS US7496 EACH BECAUSE THEY ACTED ON ORDERS FROM THEIR SUPERVISORS MR KO SAID THE OTHER FOUR WHO ARE MORE SENIOR OFFICIALS REMAINED IN CUSTODY HE SAID BETWEEN 1988 AND LAST YEAR ERICSSON WON SIX GOVERNMENT CONTRACTS VALUED AT T6 BILLION TO SUPPLY CELLULARTELEPHONE EXCHANGES INVESTIGATORS SPEAKING ON CONDITION OF ANONYMITY SAID ERICSSON WAS NOT THE LOWEST BIDDER THE EIGHT DETAINED OFFICIALS ALLEGEDLY RECEIVED KICKBACKS OF AN UNSPECIFIED AMOUNT AND CHANGED PROCUREMENT SPECIFICATIONS TO HELP ERICSSON WIN THE CONTRACTS THEY SAID THEY ADDED THAT CHIEN WENCHUN CHIEF OF THE ADMINISTRATION'S TRANSMISSION DEPARTMENT AND THE OTHER SEVEN OFFICIALS DENIED THE CHARGES IN STOCKHOLM ERICSSON FLATLY DENIED ANY WRONGDOING IT WAS UNCLEAR WHETHER ERICSSON EXECUTIVES WOULD BE INVESTIGATED 9308200040 930820 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY THE WHITE HOUSE SCRAMBLES TO OFFSET GEPHARDT'S TRADEPACT OPPOSITION WHILE STILL HOPING TO MOLLIFY THE HOUSE MAJORITY LEADER AND OTHER NAFTA FOES IN THE PARTY LEADERSHIP OFFICIALS PREPARE A FALLBACK STRATEGY CENTERING ON SPEAKER FOLEY AND REPS ROSTENKOWSKI MATSUI WHOSE PROLABOR RECORD GIVES HIM CREDIBILITY WITH COLLEAGUES WARY OF UNION OPPOSITION AND WYDEN WHO IS SIMILARLY WELLPOSITIONED TO PARRY ENVIRONMENTAL CONCERNS TO WAVERING DEMOCRATS BACKERS WILL CAST THE TRADE PACT AS A CHANCE TO BREAK FREE FROM THE PARTY'S SPECIAL INTERESTS AND STAND UP FOR ECONOMIC GROWTH IT WILL BE A REPLAY OF THE NEW DEMOCRATOLD DEMOCRAT DEBATE THAT CLINTON STRADDLED IN HIS CAMPAIGN BUT HAS STRUGGLED WITH AS PRESIDENT MATSUI ADMITS THERE'S BEEN A TOTAL VACUUM OF PRONAFTA ARGUMENTS SO FAR BUT HE INSISTS WE'RE GOING TO GET THE VOTES CLEARING THE BOOKS DISPOSAL OF FAILED THRIFTS SPEEDS UP AFTER A LONG DELAY THE RESOLUTION TRUST CORP HAVING FOUND SOME 5 BILLION IN RESERVES THAT IT WAS NOT PREVIOUSLY SURE IT COULD USE HAS RESOLVED NINE INSOLVENT S&LS IN RECENT WEEKS AND IS SEEKING TO DISSOLVE AND SELL OFF ASSETS OF 14 MORE ACTION BY CONGRESS AFTER LABOR DAY TO FREE UP ANOTHER 183 BILLION THOUGH BY NO MEANS A SURE THING WOULD FURTHER SPEED ACTION HEALTHY THRIFTS PUSH THE OFFICE OF THRIFT SUPERVISION TO TAKE OVER REMAINING AILING THRIFTS FASTER AND HAND THEM TO THE RTC WHICH LOSES ITS AUTHORITY TO ACCEPT ANY MORE ON SEPT 30 AFTER THAT INSOLVENT THRIFTS WOULD BE SENT TO THE FEDERAL DEPOSIT INSURANCE CORP AND THE HEALTHY INSTITUTIONS FEAR THEIR OWN FDIC PREMIUMS COULD GO UP TO PAY FOR THE DISPOSITION COSTS CLINTON'S FOES ON HEALTHCARE OVERHAUL MOVE TO A WAR FOOTING THE POWERFUL NATIONAL FEDERATION OF INDEPENDENT BUSINESS SAYS IT WILL FLOOD CAPITOL HILL WITH LETTERS AGAINST CLINTON'S PROPOSED MANDATE TO EMPLOYERS TO PROVIDE HEALTH INSURANCE ANYTHING CONGRESS HAS SEEN IN THE PAST IS GOING TO BE MINUSCULE COMPARED TO WHAT THEY'RE GOING TO SEE WARNS NFIB LOBBYIST MICHAEL ROUSH MEANWHILE A FALL CAMPAIGN BY RALPH NADER'S PUBLIC CITIZEN WILL FEATURE RALLIES AROUND THE COUNTRY BY LOCAL CONSUMER GROUPS LABOR UNIONS NURSING ASSOCIATIONS AND OTHERS SUPPORTING A CANADIANSTYLE SINGLEPAYER APPROACH CITIZENS FOR A SOUND ECONOMY THE CONSERVATIVE GROUP THAT LED THE ATTACK AGAINST CLINTON'S BUDGET PLANS A LETTERWRITING CAMPAIGN AND PRINT AND POSSIBLY TV ADS CLINTON INTENDS TO LAY OUT THE HEALTH PLAN IN A SEPT 22 SPEECH TO A JOINT SESSION OF CONGRESS DUELING PRIORITIES SET CLINTON AIDES ON EDGE AFTER SEVERE INFIGHTING BETWEEN ADVOCATES FOR HEALTH CARE AND ADVOCATES FOR THE FREETRADE AGREEMENT CHIEF OF STAFF MCLARTY CONVENES MEETINGS WITH WARRING CAMPS TO REMIND THEM THEY NEED TO WORK TOGETHER ASPIN'S REPORT ON RESHAPING THE MILITARY ESTABLISHMENT DUE NEXT MONTH ALREADY DRAWS SKEPTICAL REVIEWS DEFENSE EXPERTS BRIEFED ON IT SAY THEY ARE SURPRISED BY THE LACK OF MAJOR CHANGES ASIDE FROM THE EXPECTED CUT OF THE AFX AIRCRAFT NO WEAPONS PROGRAMS ARE CANCELED CRITICS SAY ASPIN IS AIMING FOR SOMETHING CLOSE TO A BUSHERA FORCE BUT WON'T HAVE BUSHSIZED DEFENSE BUDGETS TO SUPPORT IT ENDANGERED INCUMBENTS LAG BEHIND IN SENATE FUND RAISING LATEST REPORTS SHOW THAT ARIZONA DEMOCRAT DECONCINI HAS LESS CASH IN HIS CAMPAIGN COFFERS THAN HIS GOP FOE REP KYL APPOINTED TENNESSEE SEN MATHEWS HAS RAISED ONLY 78000 WHILE HIS DEMOCRATIC PRIMARY CHALLENGER REP COOPER HAS RAISED MORE THAN 1 MILLION MINNESOTA GOP SEN DURENBERGER HAS ONLY 109000 STOCKPILED FOR HIS DIFFICULT REELECTION DRIVE FREEZING AND STARVATION IN BOSNIA LOOM NEXT WINTER UN OFFICIALS FEAR NATO PLANNERS CONCLUDE THAT TO AVERT WIDESPREAD DEATHS THE SERBS BESIEGING SARAJEVO AND OTHER MUSLIM ENCLAVES WILL NEED TO BEGIN ALLOWING FOOD CONVOYS THROUGH DURING THE NEXT SEVERAL WEEKS AFTER THAT BAD WEATHER WILL BEGIN CLOSING ROADS AND SARAJEVO'S AIRPORT SADDAM SEEKS TO PLACATE THE UN ENOUGH TO RESUME OIL SALES HOPING TO GET FREE OF TRADE SANCTIONS THE IRAQIS LESSEN THEIR HARASSMENT OF UN INSPECTORS AND AGREE TO OPEN THEIR MISSILETESTING FACILITIES TO INSPECTION IRAQ ALSO HAS DESTROYED 351000 GALLONS OF POISON GAS AND RELATED CHEMICALS UNDER UN SUPERVISION A HIGHLEVEL TEAM FROM BAGHDAD ARRIVES IN NEW YORK LATE THIS MONTH TO TRY TO SETTLE OTHER OUTSTANDING ISSUES ESPECIALLY DEMANDS FOR IRAQ'S SECRET LIST OF NUCLEAR AND MISSILEPARTS SUPPLIERS UN OFFICIALS SAY THEY HAVE DESTROYED ALL NUCLEAR FACILITIES THEY KNOW ABOUT BUT BELIEVE IRAQ HAS HIDDEN SOME RELATED EQUIPMENT IN ADDITION PENTAGON OFFICIALS SAY SADDAM HUSSEIN MAY HAVE AS MANY AS 200 SCUD MISSILES HIDDEN AWAY MINOR MEMOS SHAKING HANDS AT THE SPRINGDALE ARK AIRPORT CLINTON IS TICKLED BY A WELLWISHER'S TSHIRT FEATURING A PICTURE OF SOCKS AND THE INSCRIPTION THE MICE IN LITTLE ROCK ARE NOTHING COMPARED TO THE RATS IN DC AWAITING CLINTON'S ARRIVAL ON MARTHA'S VINEYARD IS A POSTER ALONG THE BEACH ROAD PICTURING HIM WITH A LONG NOSE AND BEARING THE CAPTION CLINOCCHIO 9308200039 930820 BUSINESS BRIEF BORLAND GAINS IN BID FOR APPEALS RULING ON LOTUS COPYRIGHTS BOSTON BORLAND INTERNATIONAL INC WAS ENJOINED FROM SELLING CURRENT VERSIONS OF ITS QUATTRO PRO SOFTWARE ENABLING IT TO APPEAL COURT RULINGS THAT IT HAD INFRINGED LOTUS DEVELOPMENT CORP COPYRIGHTS IN AN UNUSUAL TWIST BORLAND LAWYERS REQUESTED THE INJUNCTION BECAUSE IT ASSURES THAT THE US CIRCUIT COURT OF APPEALS IN BOSTON WILL HEAR THEIR APPEAL JACK BLOUNT SENIOR VICE PRESIDENT OF BORLAND SAID THE INJUNCTION WON'T HAVE MUCH IMPACT ON BORLAND BECAUSE IT HAS READIED AN IMPROVED VERSION OF QUATTRO PRO HE SAID WE'LL SHIP A PRODUCT WITH NO OFFENDING TECHNOLOGY VERY SHORTLY JUDGE ROBERT KEETON ALSO SET OCT 3 1994 AS THE DATE FOR STARTING A TRIAL ON THE AMOUNT OF DAMAGES OWED TO LOTUS FROM BORLAND'S INFRINGEMENT BY COPYING PORTIONS OF LOTUS 123 JUDGE KEETON SAID THAT HE EXPECTS THE COURT OF APPEALS TO HEAR AND RULE ON BORLAND'S APPEAL BY THEN BORLAND HAS CONSISTENTLY MAINTAINED THAT JUDGE KEETON HAS ERRED IN HIS SUMMARY JUDGMENT THAT BORLAND VIOLATED SOFTWARE COPYRIGHT LAW IT HAS REPEATEDLY ASKED THE JUDGE TO LET IT APPEAL HIS RULINGS TO THE CIRCUIT COURT LOTUS INITIALLY SAID IT WOULDN'T DEMAND AN INJUNCTION BECAUSE IT PREFERRED TO PROCEED IMMEDIATELY TO THE DAMAGE PORTION OF THE CASE WHICH IS BEING TRIED SEPARATELY FROM THE LEGAL ISSUES LOTUS OFFICALS HAVE SAID DAMAGES MAY EXCEED 100 MILLION JUDGE KEETON SAID HIS RULING PERMITS THE APPEAL AND PREPARATION FOR THE DAMAGE TRIAL TO PROCEED SIMULTANEOUSLY HE SAID HE HOPES THAT IF THE APPEALS COURT UPHOLDS HIM IT WILL LEAD THE PARTIES TO REACH A SETTLEMENT AND AVOID TRIAL RICHARD SHERLUND AN ANALYST WITH GOLDMAN SACHS & CO SAID THE RULING BENEFITS BORLAND BECAUSE THEY HAVE THE CERTAINTY OF BEING HEARD ON APPEAL IT'S DISAPPOINTING FOR LOTUS THAT THE JUDGE WENT TO OCTOBER 1994 FOR THE TRIAL 9308200037 930820 POTOMAC WATCH PAUL A GIGOT IS ON VACATION 9308200036 930820 PUBLISHING TASTEMAKERS' MAGAZINES WILL CLASH BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GET READY FOR AN EVERSOTASTEFUL TUSSLE BETWEEN AMERICA'S TASTEMAKERS MARTHA STEWART WITH HER COFFEETABLE BOOKS KMART BED SHEETS AND IMMENSELY SUCCESSFUL MAGAZINE HAS LONG REIGNED AS THE UNDISPUTED QUEEN OF MASSMARKET DOMESTIC CHIC NOW COMES MARY EMMERLING A BIGSELLING DECORATING AUTHOR HERSELF TRYING TO SASHAY IN ON MS STEWART'S LUCRATIVE DOMAIN IN MS STEWART'S CORNER IS TIME WARNER INC PUBLISHER OF MARTHA STEWART LIVING MAGAZINE WHICH IN TWO YEARS HAS BECOME ONE OF THE FASTESTGROWING PUBLICATIONS IN TIME INC'S HISTORY BACKING MS EMMERLING IS NEW YORK TIMES CO WOMEN'S MAGAZINES WHICH THIS MONTH BEGAN PUBLISHING MARY EMMERLING'S COUNTRY MAGAZINE A BIMONTHLY WITH AN INITIAL NEWSSTAND CIRCULATION OF 650000 JUST WHO IS MARY EMMERLING ANYWAY AS IT HAPPENS IT WAS MS EMMERLING WHO IN 1975 GAVE AN UNKNOWN MARTHA STEWART THEN A HOUSEWIFE AND CATERER IN WESTPORT CONN HER FIRST JOB IN MAGAZINES CREATING FOOD FOR PHOTO SHOOTS MS EMMERLING HAD HEARD THROUGH THE GRAPEVINE THAT MS STEWART MADE THE BEST BREAD BUT WHILE MS STEWART WENT ON TO PARLAY TALENTS WITH DRIED FLOWERS AND SPUN SUGAR INTO WORLDCLASS CELEBRITY STATUS MS EMMERLING LABORED ON IN RELATIVE OBSCURITY WELLKNOWN AMONG DECORATING COGNOSCENTE AS THE AUTHOR OF 13 BIGSELLING BOOKS ON AMERICAN COUNTRY STYLE MS EMMERLING ALSO MARKETS HER OWN LINE OF HOME FURNISHINGS BUT REAL STARDOM HAS THUS FAR ELUDED HER THE NEW YORK TIMES CO HOPES TO CHANGE THAT WITH HER NEW MAGAZINE MS EMMERLING'S PHOTOGRAPH AND PERSONALITY WILL IMBUE ITS PAGES AND DEFINE ITS IDENTITY MUCH AS MS STEWART HAS PUT HER PERSONAL STAMP ON HER OWN PUBLICATION MS EMMERLING A 50YEAROLD DIVORCED MOTHER OF TWO ENVISIONS BLANKETING THE US HEARTLAND WITH HER BRAND OF CASUAL WESTERN COUNTRY DECOR I WANT TO DESIGN GREAT STYLE AND TASTE FOR MIDAMERICA SHE SAYS THE WORLD HAS GOTTEN SO HARD I WANT TO MAKE IT COMFORTABLE AND EASY THE PREMIERE ISSUE THIS MONTH WILL BE FOLLOWED BY MARY EMMERLING'S COUNTRY CHRISTMAS WITH A CIRCULATION OF 12 MILLION AND FIVE OTHER ISSUES IN 1994 IF THE NEW MAGAZINE TAKES HOLD NEW YORK TIMES CO HAS CONTRACTED TO USE MS EMMERLING'S NAME IN DEVELOPING OTHER UNSPECIFIED VENTURES AND PROPERTIES IN MARY WE BOUGHT OURSELVES A FRANCHISE SAYS CHARLES H TOWNSEND PRESIDENT AND CHIEF EXECUTIVE OF NEW YORK TIMES CO'S WOMEN'S MAGAZINE GROUP THE SHOWDOWN WILL OCCUR AT SUPERMARKET CHECKOUT RACKS AND TENSION IS MOUNTING TIME WARNER RECENTLY SENT A QUESTIONNAIRE TO MARTHA STEWART LIVING READERS ASKING HAVE YOU EVER PURCHASED ANY OF MARY EMMERLING'S BOOKS HOW SIMILAR DO YOU THINK MARY EMMERLING IS TO MARTHA STEWART NEW YORK TIMES CO CAN'T BE BLAMED FOR TRYING TO EMULATE A GOLD MINE LIKE MS STEWART TIME WARNER HAS A 10YEAR CONTRACT WITH MS STEWART TO CREATE PROPERTIES AND SHE HASN'T MISSED YET PART OF TIME WARNER'S TIME INC VENTURES UNIT MARTHA STEWART LIVING WAS LAUNCHED IN 1991 AND ITS PAID CIRCULATION HAS SINCE SOARED TO 725000 MS STEWART'S WEEKLY HALFHOUR TV SHOW WILL MAKE ITS DEBUT SEPT 18 REACHING MOST OF THE COUNTRY BUT FOR NEW YORK TIMES CO ATTEMPTING TO REPLICATE THE MARTHA STEWART PHENOMENON IS A LONGSHOT SUCCESSFUL MAGAZINES CAN RARELY BE CLONED AS SEVERAL FAILED IMITATORS OF VANITY FAIR HAVE LEARNED AND WHILE MS EMMERLING'S MAGAZINE HAS MORE DOWNHOME MASSMARKET APPEAL THAN MARTHA STEWART LIVING IT'S UNCERTAIN WHETHER THERE IS ROOM FOR YET ANOTHER SHELTER MAGAZINE AS FOR THE CONTEST OF PERSONALITIES SOME MEDIA WATCHERS WONDER WHETHER THE RUDDYCHEEKED MS EMMERLING'S WHOLESOME WARMTH WILL BE A MATCH FOR THE GLAMOROUS EXMODEL MS STEWART AND THE IMAGE OF PERFECTION SHE PURVEYS THEN THERE IS THE MATTER OF MS EMMERLING'S SIGNATURE WESTERN COUNTRY STYLE CHARMINGLY BATTERED FURNITURE COLORFUL QUILTS SLUNG OVER GINGHAM SOFAS FLEAMARKET FINDS AND LOTS OF US FLAGS MS EMMERLING A GREATGREAT GRANDDAUGHTER OF WILLIAM HENRY HARRISON THE NINTH US PRESIDENT WILL BE SELLING A RUSTIC CHARM ALREADY WRUNG DRY BY MARKETERS FROM RALPH LAUREN TO COUNTRY CURTAINS CATALOG AT LAST COUNT THERE WERE AT LEAST 10 NATIONAL MAGAZINES WITH COUNTRY FORMATS RANGING FROM COUNTRY LIVING TO COUNTRY MUSIC IF THE COUNTRY LOOK HAS BECOME A CLICHE IT WAS MS EMMERLING WHO HELPED MAKE IT SO A FORMER HOUSE BEAUTIFUL DECORATING EDITOR WHO WAS TOLD BY A BOOK AGENT THAT SHE HAD A LOOK MS EMMERLING PUBLISHED HER FIRST BOOK AMERICAN COUNTRY IN 1980 THAT BOOK AND A DOZEN MORE THAT FOLLOWED HAVE SOLD MORE THAN 15 MILLION COPIES THIS SUMMER'S AMERICAN COUNTRY COTTAGES AT 25 A COPY IS NOW IN ITS SECOND PRINTING MARY WAS THE FIRST ONE TO PUT COUNTRY IN THE VERNACULAR SAYS BUFFY BIRRITTELLA A SENIOR EXECUTIVE AT POLO RALPH LAUREN CORP IT WAS A NATURAL LEAP FROM BOOKS TO MERCHANDISE TIEINS MS EMMERLING CREATED BEDSHEETS FOR JC PENNEY CO LENT HER NAME TO A LINE OF ERSATZ WESTERN FURNITURE AND ACCESSORIES LIKE COWBOYBOOT LAMPS AND SOON WILL COME TO MARKET WITH HER OWN LINE OF TABLEWARE AND WALLPAPER NEXT UP AND POSSIBLY ONE UP ON MS STEWART SHE IS TALKING WITH BARRY DILLER'S QVC NETWORK INC ABOUT A POSSIBLE ONEHOUR SPOT ON THE HOMESHOPPING NETWORK DURING WHICH SHE WILL DISCUSS COUNTRY STYLE WHILE PITCHING HER GOODS WHEN MARY STARTED COUNTRY WAS VERY NEW AND FRESH SAYS MS BIRRITTELLA OF RALPH LAUREN WHAT HAS GOTTEN OLD NOW IS THE CUTESYWOOTSEY COUNTRY KIND OF STUFF MARY WON'T DO THAT SHE'S ABOUT A NATURAL PERSONAL WAY OF DECORATING TO BUILD HER MAGAZINE MS EMMERLING WILL DRAW ON HER EXTENSIVE CONTACTS AMONG WRITERS DECORATORS MANUFACTURERS AND DEVOTEES OF COUNTRY STYLE HER CONNECTIONS ALREADY HAVE PAID DIVIDENDS WHEN HOUSE BEAUTIFUL RECENTLY ASKED TO PHOTOGRAPH THE HOME OF HOUSTON DECORATOR CAROL GLASSER MS GLASSER TURNED THEM DOWN SO THAT HER FRIEND MS EMMERLING COULD FEATURE IT IN HER MAGAZINE MARTHA STEWART IS STILL PART OF MS EMMERLING'S NETWORK ON THE SURFACE ALL REMAINS CIVIL BOTH WOMEN SIP COCKTAILS AT THE SAME POSH BOOK PARTIES SPEAK HIGHLY OF EACH OTHER'S BOOKS AND EVEN SHARE THE SAME BOOK PUBLISHER EACH HAS KIND WORDS TO SAY ABOUT THE OTHER'S SUCCESS MOST OF THE TIME IS THERE FOR EXAMPLE A SMIDGEN OF CRITICISM IMPLICIT IN MS EMMERLING'S MENTION OF HOW OFTEN MS STEWART GRACES HER MAGAZINE'S COVER I DON'T HAVE TO PUT MYSELF ON THE COVER MS EMMERLING SAYS MARTHA'S MAGAZINE IS ABOUT MARTHA ABOUT HER HOUSE AND HOW SHE DOES HER HOUSE ME I LISTEN TO OTHER PEOPLE MS STEWART OF COURSE WISHES MS EMMERLING THE BEST WHILE DISCREETLY CLAIMING SOME OF THE CREDIT IN ADVANCE IF HER MAGAZINE IS A RUNAWAY SUCCESS I WILL BE PERFECTLY HAPPY SHE SAYS IF I AM BEING EMULATED MY FATHER TAUGHT ME THAT IS THE HIGHEST FORM OF FLATTERY 9308200035 930820 THE AMERICAS COLOMBIA'S GUERRILLAS HAVE LOST ALL THEIR GLAMOUR BY CECILIA RODRIGUEZ BOGOTA COLOMBIA NO LESS A FIGURE IN THE CAUSE OF LATIN AMERICAN RADICALISM THAN FIDEL CASTRO WAS APPROACHED TO SERVE AS A PEACEMAKER LAST WEEK BY COLOMBIAN PRESIDENT CESAR GAVIRIA IN COLOMBIA ON A STATE VISIT CASTRO WAS REPORTEDLY ASKED TO DO WHAT THE COLOMBIAN PEOPLE HAVE SO FAR BEEN UNABLE TO DO GET THE COUNTRY'S MARXIST GUERRILLAS TO LAY DOWN THEIR ARMS AND GIVE UP THEIR 30YEAR WAR WITH THE STATE HOWEVER IT IS UNCLEAR WHETHER EVEN CASTRO THE INTELLECTUAL GODFATHER OF COLOMBIA'S GUERRILLAS COULD GET THEM TO GIVE UP THE FIGHT IT'S THIS INTRANSIGENCE ONCE THE SOURCE OF THEIR STRENGTH AND POPULAR SUPPORT WHICH MAY SOON BECOME THE REASON FOR THEIR DEMISE RECENTLY SEVERAL COLOMBIAN GUERRILLAS LIVING IN EXILE IN MEXICO CITY SPOKE OF THEIR COMMITMENT TO THE CAUSE SITTING WITH THEM IN A CAFE SHORTLY BEFORE LEAVING FOR COLOMBIA I FOUND THEM SO CONVINCED OF THE LEGITIMACY OF THEIR BATTLE AGAINST POLITICAL AND SOCIAL OPPRESSION IN COLOMBIA SO CONCERNED THAT THE COUNTRY'S FUTURE OFFERS ONLY VIOLENCE BUT MOST OF ALL SO COMMITTED TO DEFEND THEIR BELIEFS WITH THEIR LIVES THAT I QUESTIONED WHETHER I HAD BEEN DUPED BY COLOMBIA'S OFFICIAL LINE IT WAS A THROWBACK TO ANOTHER MORE NAIVE ERA TEN YEARS AGO MANY OF COLOMBIA'S BEST AND BRIGHTEST THE TOP UNIVERSITY STUDENTS TEACHERS ARTISTS INTELLECTUALS BECAME DIRECTLY OR INDIRECTLY INVOLVED IN ONE OF THE MANY GUERRILLA ORGANIZATIONS OR GUERRILLA FRONT GROUPS THEIR CAUSE APPEALED TO THOSE WHO VIEWED THE GUERRILLAS' INSURGENCY AS THE ONLY WAY TO STRIKE AT A SYSTEM IN WHICH CORRUPT WEAK AND INEFFICIENT GOVERNMENTS SERVED ONLY THE INTERESTS OF THE PRIVILEGED CHANGE BY LEGAL MEANS SEEMED IMPOSSIBLE WHEN GUERRILLAS ATTACKED THE ALLIES OF THE GOVERNMENT BIG LANDOWNERS MULTINATIONAL CONGLOMERATES FOREIGN OIL COMPANIES MANY COLOMBIANS PRIVATELY SUPPORTED SUCH ACTIONS BUT NO MORE WHILE COLOMBIA'S GOVERNING STRUCTURE HAS NOT UNDERGONE REVOLUTIONARY CHANGE THOSE INTERESTED IN AFFECTING SUCH CHANGE NO LONGER SUPPORT THE GUERRILLAS EVEN BEFORE THE COLLAPSE OF THE COMMUNIST WORLD THE TREND TOWARD DISILLUSIONMENT WITH THE GUERRILLAS' MARXIST GOALS AND TACTICS HAD ALREADY BEGUN HERE COLOMBIANS CAME TO REALIZE THAT GUERRILLAS WERE NO LONGER GROUPS OF YOUNG STARRYEYED IDEALISTS READY TO DIE DEFENDING THE LOST CAUSES OF JUSTICE AND EQUALITY THEY HAD BEEN TRANSFORMED INTO PRIVATE ARMIES AUTONOMOUS AND SELFSUFFICIENT THEIR MAIN GOALS SELFPERPETUATION AND ENRICHMENT THE LONGER THE GUERRILLAS CONTINUE WITH THEIR WAR OF ATTRITION THE MORE EVIDENT THEIR INCAPACITY TO ACHIEVE THEIR DREAM SEVERAL MONTHS AGO COLOMBIA'S MOST INFLUENTIAL INTELLECTUALS A LIST OF FORMER SYMPATHIZERS THAT INCLUDED NOBEL PRIZE WINNING AUTHOR GABRIEL GARCIA MARQUEZ WROTE AN OPEN LETTER CALLING ON THE GUERRILLAS TO STOP THE WAR THAT HAS DONE SO MUCH DAMAGE TO COLOMBIA SKEPTICISM AND DISENCHANTMENT ARE WORDS FORMER GUERRILLA SUPPORTERS USE WHEN DESCRIBING THEIR CURRENT ATTITUDE INTELLECTUALS FORMER SYMPATHIZERS FROM THE GUERRILLAS' GOLDEN ERA TODAY FIND THEMSELVES IN LIMBO THERE IS NO LOYALTY TO ANY CAUSE ANYMORE SAYS ENRIQUE SANTOS CALDERON ONE OF THE COUNTRY'S MOST INFLUENTIAL WRITERS WE ARE IN A PROCESS OF INTROSPECTION DUE TO THE CRISIS OF VALUES INDEED AFTER A TOTAL OF 30 YEARS OF FIGHTING THE COUNTRY IS BASICALLY THE SAME THE GAP BETWEEN RICH AND POOR HAS GROWN COLOMBIA'S GOVERNMENT TRIES FROM TIME TO TIME TO CLEANSE THE SYSTEM BUT OLD VICES ARE DEEPLY ROOTED A CORRUPT AND INEFFICIENT BUREAUCRACY STILL REIGNS SUPREME AFTER THREE DECADES OF REVOLT SOME OF THE GUERRILLAS HAVE COME IN FROM THE COLD THE LEGENDARY M19 REACHED AN ACCORD WITH THE GOVERNMENT IN 1990 ITS TOP LEADER THE BATTLESCARRED ANTONIO NAVARRO WOLF APPEARS TO BE COLOMBIA'S ROSS PEROT FACTOR IN NEXT YEAR'S PRESIDENTIAL ELECTIONS MR NAVARRO WILL REPRESENT A CURIOUS COALITION THAT INCLUDES SMALL PARTIES FROM THE MODERATE RIGHT AND EVEN SOME PROGRESSIVE ARMY OFFICERS HE IS WELLPOSITIONED TO GET THE MOST MILEAGE OUT OF COLOMBIANS' DISDAIN FOLLOWING A WORLDWIDE TREND FOR ALL ESTABLISHED POLITICAL PARTIES BUT IF THE POPULAR OPINION OF GOVERNMENT LEADERS HAS NOT IMPROVED RECENT POLLS SHOW THAT THE GUERRILLAS' IMAGE HAS NOSEDIVED MOST COLOMBIANS COMPARE THE GUERRILLAS TO NARCOTERRORISTS AND PARAMILITARY KILLERS INDEED ACCORDING TO WIDELYPUBLISHED OFFICIAL REPORTS THE DIFFERENT REBEL MOVEMENTS HAVE BECOME POWERFUL BUSINESSES DEDICATED TO KIDNAPPINGFORRANSOM EXTORTION AND EVEN DRUG TRAFFICKING HAVING LOST MOST OF THE POOL OF VOLUNTEERS THAT ONCE CAME FROM UNIVERSITIES REBEL RECRUITING IS DONE MORE AMONG IMPOVERISHED PEASANTS AND THE URBAN POOR FOR WHOM BEING A GUERRILLA OFFERS AN IDENTITY AND A SALARIED LIVELIHOOD HOWEVER PEASANT DISDAIN FOR THE GUERRILLAS IS NOW OFTEN HIGHER THAN THAT OF THE URBAN INTELLECTUALS BECAUSE THE POOR HAVE MORE TO LOSE PEASANT FAMILIES ARE TIRED OF GIVING THEIR CHICKENS THEIR CROPS AND THEIR SONS TO THE VARIOUS GUERRILLA FRONTS WHAT WERE ONCE ACCEPTED AS REVOLUTIONARY ACTS THE FREQUENT DESTRUCTION OF OIL PIPELINES KIDNAPPINGS OF BUSINESSMEN POLITICIANS OR WEALTHY CATTLERANCHERS TAXES LEVIED ON RICH FARMERS TO PUNISH EXPLOITERS OF THE PEOPLE HAVE LOST THEIR IDEOLOGICAL CONTENT AND ARE NOW RECOGNIZED AS SIMPLE CRIMINAL ACTS THE GUERRILLAS' FALL FROM GRACE HAS BEEN ACCELERATED BY MANY FACTORS AMONG THEM THE LINKS OF SOME GUERRILLA GROUPS TO DRUG TRAFFICKING LAST YEAR'S TERRORIST ATTACKS AGAINST URBAN POPULATIONS IN THEIR STREETS AND HORRIFYING INTERNAL PURGES AGAINST DISSIDENTS WITHIN THEIR OWN ORGANIZATIONS ONE OF THEIR MOST RECENT ACTIONS THE KIDNAPPING AND MURDER OF A SPANISH PRIEST REVERED IN IMPOVERISHED TOWNS ALONG COLOMBIA'S NORTHERN COAST HAS ENRAGED THE ENTIRE COUNTRY THERE ARE ALSO CHARGES OF A GUERRILLA PLOT TO KILL THE PRESIDENT AND SELECTED MEMBERS OF HIS CABINET MEANWHILE THE FEW EFFORTS AT RENEWED DIALOGUE SHOW THAT TALK OF PEACE WAS REALLY SLEIGHTOFHAND BEHIND THE RHETORIC ON BOTH SIDES LAY A DESIRE TO WIPE EACH OTHER OUT SO ONCE AGAIN DESPITE OUR WEARINESS OF VIOLENCE COLOMBIANS HAVE CHOSEN TO BELIEVE THAT THE ONLY SOLUTION IS THE BULLET BUT THE ARMY'S FIREPOWER MAY NOT BE ALL THAT NECESSARY IN OVERCOMING THE GUERRILLA CHALLENGE PERHAPS EVEN FIDEL CASTRO'S INTERVENTION IS UNNECESSARY AS AN ALTERNATIVE FOR A COUNTRY WITHOUT MANY AT HAND THE CONTINENT'S LAST CLASSIC REVOLUTIONARIES APPEAR WELL ON THEIR WAY TO SELF DESTRUCTION MS RODRIGUEZ IS A COLOMBIAN JOURNALIST LIVING IN MEXICO CITY 9308200034 930820 THIS BREED OF RODENT IS BECOMING A PEST AT MAJOR LAW FIRMS AN UNDERGROUND NEWSLETTER SOPHOMORIC BUT BITING TAPS INTO ASSOCIATES' ANGST BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL EVERYBODY LOVES LAWYERBASHING EXCEPT LAWYERS RIGHT THEN AGAIN MAYBE THERE ARE NO EXCEPTIONS THOUSANDS OF YOUNG ATTORNEYS THESE DAYS ARE HUDDLING AROUND FAX MACHINES TO DEVOUR NOT LEGAL BRIEFS BUT THE LATEST ISSUE OF A SCATHING UNDERGROUND NEWSLETTER FOR LAWFIRM ASSOCIATES CALLED THE RODENT PUBLISHED BY TWO CALIFORNIA LAWYERS THE OFTEN SOPHOMORIC ALWAYS BITING MONTHLY IS ACHIEVING CULT STATUS THANKS TO REGULAR FEATURES LIKE LAW FIBS WHEN A PARTNER SAYS THE FIRM HAS A GOOD WORKING ENVIRONMENT AND YOU WILL HAVE AN EXCELLENT CHANCE TO MAKE PARTNER HE MEANS YOU WILL BE WORKED TO DEATH FOR THREE OR FOUR YEARS AND THEN FIRED SUBTLE IT ISN'T THE TWOPAGE RODENT PRINTED ON CHEAP PAPER AND TYPESET ON A PERSONAL COMPUTER REGULARLY LAMPOONS PARTNERS FOR OVERBILLING THEIR CLIENTS AND OVERWORKING THEIR ASSOCIATES A RECENT ISSUE FEATURED A MONOPOLYSTYLE GAME CALLED PARTNERSHIP WITH THE PRIZE A SIXFIGURE INCOME DIVORCE TRIPLE BYPASS AND RESENTMENT OF COLLEAGUES AND CHILDREN THE NEWSLETTER'S LATEST SLOGAN PROMOTING HATE CRIMES AGAINST LAWYERS SINCE 1991 IS THE RODENT JUST A HARMLESS PEST NOT EVERYONE IS SO SURE AT A TIME WHEN BOTH REVENUE AND MORALE ARE DEPRESSED AT MANY LAW FIRMS AND JUNIOR LAWYERS ARE PRESSURED TO WORK HARDER THAN EVER THE RODENT SUGGESTS THAT A MUCH DEEPER DISCONTENT IS GNAWING AWAY AT MANY YOUNG LAWYERS MANY OF THEM ENTERED THE PROFESSION WITH VISIONS OF PUBLIC SERVICE AND COMMUNITY RESPECT OR AT LEAST OF MAKING SCADS OF MONEY AND RETIRING RICH NOW FIRMS THAT USED TO WOO THEM WITH EXPENSIVE DINNERS AND BROADWAY SHOWS ARE FIRING MANY OF THEM INSTEAD IN THE PAST FEW YEARS THE TURNOVER RATE AT SOME LARGE LAW FIRMS HAS DOUBLED LAWFIRM CONSULTANTS ESTIMATE IN AN INFORMAL POLL BY CALIFORNIA LAWYER MAGAZINE LAST YEAR 70 OF LAWYERS SAID THEY WOULD START A NEW CAREER IF THEY COULD A 1990 AMERICAN BAR ASSOCIATION SURVEY INDICATED THAT 23 OF ALL LAWYERS AND ABOUT A THIRD OF ASSOCIATES ARE DISSATISFIED DESPITE AVERAGE BIGFIRM STARTING SALARIES OF 70000 A YEAR THE RODENT IS MAILED FREE TO ABOUT 1350 PEOPLE BUT VIA FAX AND INTEROFFICE MAIL IT REACHES THOUSANDS MORE INFILTRATING THE HIGHRISE WARRENS HOUSING THE NATION'S MOST PRESTIGIOUS FIRMS IT RECEIVES DOZENS OF LETTERS A MONTH FROM MISERABLE ASSOCIATES W SCARTH CLARK OF CORPUS CHRISTI TEXAS CALLED HIMSELF A SLAVE A GREAT FALLS VA LAWYER IDENTIFIED HERSELF AS A LAYOFF VICTIM OF ONE OF DC'S MOST VILE LITIGATION SWEATSHOPS WHILE THE NEWSLETTER'S HUMOR TENDS TOWARD THE TASTELESS ONE ISSUE JOKINGLY PROMISED ALAN DERSHOWITZ NUDE A FOURTEEN PAGE PICTORIAL SOME SAY EVEN A CRUDE ATTEMPT TO TWEAK THE LEGAL ESTABLISHMENT IS A HEALTHY SIGN I THINK IT'S GREAT THAT THIS IS HAPPENING SAYS DUNCAN KENNEDY AN ICONOCLASTIC HARVARD LAW SCHOOL PROFESSOR WHO HAS JUST WRITTEN A BOOK THAT ADVOCATES OVERTHROWING THE TRADITIONAL LAWFIRM STRUCTURE THE SLIGHTEST HINT OF REBELLION EVEN IF IT ISN'T VERY POLITICAL OR EVEN VERY FUNNY CAN REALLY FREAK OUT THE HALL MONITORS OF IDEOLOGICAL CONFORMITY THE LAWYERS BEHIND THE RODENT WEREN'T EXACTLY TRYING TO SPARK A REBELLION WHEN THEY STARTED THEIR SAMIZDAT THREE YEARS AGO THEY WERE JUST TRYING TO ALLEVIATE THEIR MISERY TAKING ON THE PEN NAMES BEAV AND MICK FOR TWO RODENTS A BEAVER AND MICKEY MOUSE THE AUTHORS NOW 30 AND 34 YEARS OLD PUT OUT THEIR FIRST ISSUE WHILE WORKING TOGETHER AS HARRIED ASSOCIATES IN THE LOS ANGELES OFFICE OF CHICAGO'S BAKER & MCKENZIE THEY CHOSE THE NAME BOTH BECAUSE THE RODENT IS A PEST AND BECAUSE THAT'S WHAT WE FELT WE WERECLASSIC MICE ON A TREADMILL GOING ROUND AND ROUND SAYS BEAV AT FIRST THE YOUNG AUTHORS FURTIVELY MADE PHOTOCOPIES AT THE FIRM AT FIVE IN THE MORNING AND DIVULGED THEIR IDENTITIES ONLY TO THE MAILROOM CLERK AND A FEW FRIENDS BUT THEN BAKER & MCKENZIE STARTED TRACKING ITS COPIER COSTS BY COMPUTER LUCKILY FOR THE RODENTS THEY WERE ABLE TO OBTAIN THE IDENTIFICATION CODES OF SEVERAL SENIOR PARTNERS AND AN ATTEMPT TO TRACE A LARGE NUMBER OF UNAUTHORIZED COPIES LED STRAIGHT TO THOSE PARTNERS' CUSHY OFFICES AFTER THE COPIER INCIDENT THE FIRM UNCOVERED THE IDENTITY OF ONE RODENT WHO WAS SENT TO WORK OVERSEAS FOR EIGHT MONTHS THE FIRM SAYS THE TRANSFER WAS UNRELATED PUBLICATION TEMPORARILY CEASED UNTIL BOTH AUTHORS LEFT BAKER & MCKENZIE ONE IS NOW AN ASSOCIATE AT ANOTHER CALIFORNIA FIRM WHILE THE OTHER NOW WORKS IN GOVERNMENT RELATIONS BECAUSE THEY HAPPEN TO LIKE BEING EMPLOYED BOTH AGREED TO TALK ONLY IF THEY WEREN'T NAMED SINCE GOING NATIONAL TWO YEARS AGO THE RODENT CAN HARDLY KEEP UP WITH DEMAND EACH ISSUE COSTS ABOUT 460 IN PRINTING AND POSTAGE WHICH THE AUTHORS HAVE BEEN PAYING OUT OF THEIR OWN POCKETS THEY PROMISE TO START CHARGING FOR IT SOON THEY ALREADY DO OFFER A 200 SUBSCRIPTION FOR PARTNERS NOBODY HAS TAKEN THEM UP ON IT IN FACT A LOT OF PARTNERS DO NOT REALLY SEE THE HUMOR IN THE RODENT EVEN THOUGH THEY ARE NOT ITS ONLY TARGETS THE NEWSLETTER SKEWERS PARALEGALS AND SECRETARIES WITH EQUAL VIGOR ONE MOCK ARTICLE REPORTS THAT MICHAEL MILKEN ASKED TO BE RETURNED TO PRISON AFTER A STINT AT A LAW FIRM JUNK BOND KING SAYS HE'D RATHER BE A PRISONER THAN A PARALEGAL AND A RUNNING FEATURE CALLED THE FIRM PERSONALITY PROFILE DESCRIBES VARIOUS FUNCTIONARIES INCLUDING THE TYPICAL SENIOR EXECUTIVE SECRETARY WHO LIVES ALONE SINCE BLUDGEONING HER KITTEN TO DEATH STILL THE PARTNERS ARE THE ONES WHO CALL THE SHOTS AT LAW FIRMS AND SOME WOULD LIKE TO SEE THE RODENT EXTERMINATED AT THE PALO ALTO CALIF LAW FIRM WILSON SONSINI GOODRICH & ROSATI AN ASSOCIATE WHO DISTRIBUTED COPIES OF A RODENT PARODY OF A LAWYER'S BILL TO ALL HIS COLLEAGUES GOT A DRESSING DOWN LAST SUMMER FROM MANAGING PARTNER MARK BERTELSEN WE WERE SENSITIVE ABOUT THE ISSUE OF OVERBILLING FOR ALL THE OBVIOUS REASONS SAYS MR BERTELSEN WE DON'T DO THAT BUT TO HAVE SOMETHING LIKE THIS SENT OUT THIS WAY COULD BE EASILY MISUNDERSTOOD THE ASSOCIATE MICHAEL L PLATT HAS SINCE MOVED FOR UNRELATED REASONS TO ANOTHER FIRM AT LEAST ONE SAN FRANCISCO FIRM HAS BANNED THE RODENT FROM ITS OFFICE INEVITABLY SOME SUBSCRIBERS THEMSELVES ARE OUTGROWING THE PUBLICATION ONE OF THEM M CORY BROWN SENT A FORMAL LETTER ON FIRM STATIONERY AFTER HE WAS NAMED A PARTNER AT THE SAN DIEGO LAW FIRM HIGGS FLETCHER & MACK ASKING TO BE DROPPED FROM THE MAILING LIST HE DIDN'T BARGAIN ON THE RESPONSE THE RODENT PUBLISHED THE LETTER ON ITS FRONT PAGE BENEATH A MOCKING ARTICLE HEADLINED BROWN NAMED RODENT'S PERSON OF THE YEAR A FEW MONTHS LATER IN A FAKE AD FOR BERLITZ SPEAK LIKE A PARTNER IN SIX WEEKS THE NEWSLETTER ADDED AN ERSATZ ENDORSEMENT FROM MR BROWN I MADE PARTNER IN FIVE YEARS THANKS TO BERLITZ PARTNERESE SOMEDAY THOUGH WHAT SHOULD HAPPEN IF ONE OF THE FOUNDING RODENTS HIMSELF MAKES PARTNER THE AUTHOR WHO CALLS HIMSELF BEAV AND WHO IS INDEED ON THE PARTNERSHIP TRACK AT A CALIFORNIA LAW FIRM HAS ALREADY THOUGHT THIS ONE THROUGH WE'LL PROBABLY START A NEW EDITION ABOUT LAZY ASSOCIATES 9308200033 930820 JAPAN SHIPBUILDERS SIGN EXPORT CONTRACTS SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPANESE SHIPBUILDERS SIGNED EXPORT CONTRACTS IN JULY TO BUILD VESSELS WITH TOTAL TONNAGE OF 166 MILLION METRIC TONS 183 MILLION TONS UP NINEFOLD IN TONNAGE FROM A YEAR EARLIER THE JAPAN SHIP EXPORTERS' ASSOCIATION SAID THE FIGURES WERE THE HIGHEST MONTHLY LEVELS IN A DECADE FOR BOTH THE NUMBER OF VESSELS AND TONNAGE BUT IT IS A SINGLEMONTH PHENOMENON AN ASSOCIATION SPOKESMAN SAID CLIENTS WHO HAVE BEEN TAKING A WAITANDSEE STANCE AMID THE RISE OF THE YEN SINCE EARLY THIS YEAR DECIDED TO SIGN CONTRACTS IN JULY BECAUSE THEY COULDN'T DELAY THE COMPLETION OF SHIPS ANY LONGER THE SPOKESMAN SAID THE YEN IN JULY APPEARED UNLIKELY TO FALL BACK SIGNIFICANTLY IN THE NEAR TERM HE ADDED AS MOST OF THE CONTRACTS ARE PAYABLE IN YEN THE STRONGER CURRENCY MAKES JAPANESE SHIPS MORE EXPENSIVE FOR FOREIGN BUYERS 9308200032 930820 BUSINESS BRIEF CAMELOT CORP QUESTIONS ABOUT SEC FILING LEAD TO AUDITOR'S DISMISSAL CAMELOT CORP SAID IT FIRED ITS AUDITOR HEIN & ASSOCIATES SAYING THE FIRM FAILED TO SEND A REPRESENTATIVE TO A MEETING WITH THE COMPANY'S BOARD TO EXPLAIN WHY AN AUDITED ANNUAL REPORT HASN'T BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IT'S A VERY STRANGE BUSINESS SAID DANNY WETTREICH PRESIDENT OF THE DALLAS HOLDING COMPANY WE DO NOT HAVE AN EXPLANATION FROM THEM AS TO WHY THEY DIDN'T COMPLETE THE AUDIT HEIN & ASSOCIATES DIDN'T RETURN CALLS SEEKING COMMENT ON MONDAY CAMELOT SAID THE AUDITORS HADN'T YET RESOLVED SOME ACCOUNTING AND REPORTING ISSUES RELATED TO VARIOUS TRANSACTIONS CAMELOT ALSO CALLED OFF A PLANNED PROXY SOLICITATION TO REPLACE TYREX OIL CO DIRECTORS CAMELOT HOLDS A 5 STAKE IN TYREX WE FEEL IT'S INAPPROPRIATE TO DO THAT AT THIS TIME WITHOUT OUR 10K FILING BEING MADE MR WETTREICH SAID 9308200031 930820 HEALTH CARCINOGEN BAN FOR SOME FOOD MAY BE EASED BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE BIG FOODSAFETY BATTLE OF THE 1990S HAS BEGUN THE FIGHT IS OVER A 1958 LAW THAN BANS CANCERCAUSING PESTICIDES EVEN IN THE MOST MINUTE AMOUNTS FROM PROCESSED FOODS THE ISSUE HAS BEEN AROUND FOR DECADES PITTING MOTHERS AGAINST CHEMICAL PRODUCERS AND FARMERS AGAINST ENVIRONMENTALISTS NOW THE CLINTON ADMINISTRATION IS WEIGHING IN WITH ITS SOLUTION EARLY NEXT MONTH IT PLANS TO PROPOSE CHANGES THAT WOULD ALLOW SOME OF THESE SUBSTANCES IN PROCESSED FOODS UNDER THE PLAN STRICT NEW STANDARDS WOULD BE SET FOR THE AMOUNT OF THE CANCERCAUSING SUBSTANCES IN BOTH PROCESSED FOOD AND RAW FOODS WHERE THEY ARE CURRENTLY ALLOWED THE WHITE HOUSE IS HOPING THAT ITS SOLUTION WILL PLACATE ALL SIDES BUT EARLY INDICATIONS SUGGEST IT WON'T ENVIRONMENTAL GROUPS ALREADY WERE COMPLAINING YESTERDAY THAT THE PROPOSED CHANGES WOULD UNDERMINE FOOD SAFETY REACTION FROM INDUSTRY AND FARM GROUPS TO A DRAFT OUTLINE OF THE PROPOSAL BEING CIRCULATED AMONG INTEREST GROUPS WAS MORE FAVORABLE BUT THEY ARGUED THAT FURTHER LOOSENING IS NEEDED ADMINISTRATION OFFICIALS CAUTIONED THAT THE DRAFT IS SUBJECT TO REVISION THE CHANGES ARE TO BE PART OF A BROAD PACKAGE AFFECTING PESTICIDE REGULATION OTHER PROVISIONS WOULD BAR THE EXPORT OF CHEMICALS THAT ARE BANNED IN THIS COUNTRY BOLSTER THE ABILITY OF THE ENVIRONMENTAL PROTECTION AGENCY TO PHASE OUT UNSAFE PESTICIDES AND PROMOTE THE USE OF SAFER PESTICIDES AND NONCHEMICAL ALTERNATIVES TO PEST CONTROL OFFICIALS HOPE THE WIDE RANGE OF THE PROPOSAL WILL SOFTEN OPPOSITION TO THE FOOD CHANGES BUT JAY FELDMAN EXECUTIVE DIRECTOR OF THE NATIONAL COALITION AGAINST THE MISUSE OF PESTICIDES BLASTED THE PROPOSALS AS SHORTSIGHTED HE ARGUED THAT IT ISN'T POSSIBLE TO DETERMINE A SAFE AMOUNT OF CANCERCAUSING SUBSTANCES TO ALLOW IN FOODS AND THAT THE PROPOSAL WOULDN'T ADEQUATELY TAKE INTO ACCOUNT THE PRESENCE OF SEVERAL PESTICIDE RESIDUES IN INDIVIDUAL FOODS OTHER GROUPS COMPLAINED THAT THE CLINTON PEOPLE WERE GIVING FUTURE ADMINISTRATIONS TOO MUCH LEEWAY TO DETERMINE ACCEPTABLE LEVELS OF CANCERCAUSING PESTICIDES IN FOOD AND THAT ITS OWN POLICY WOULDN'T SET A STRICT ENOUGH STANDARD FOR NONCARCINOGENIC PESTICIDES JEFFREY NEDELMAN A SPOKESMAN FOR THE GROCERY MANUFACTURERS OF AMERICA PRAISED THE PROPOSALS AS A GOOD FIRST STEP BUT HE CALLED FOR THE ADMINISTRATION TO SEEK A UNIFORM NATIONAL POLICY FOR PESTICIDE REGULATION REMOVING THE ABILITY OF STATES TO SET POLICIES THAT ARE TOUGHER THAN THE FEDERAL ONES UNDER THE ADMINISTRATION'S DRAFT THE EXISTING BAN ON CANCERCAUSING PESTICIDES THAT CONCENTRATE IN PROCESSED FOODS WOULD BE REPLACED BY A HEALTHBASED STANDARD THAT WOULD APPLY TO ALL FOODS AMONG OTHER GRIPES CRITICS OF THE EXISTING PROVISION HAVE COMPLAINED THAT IT SETS A DIFFERENT STANDARD FOR RAW FOOD AND PROCESSED PRODUCTS THE EPA FOR EXAMPLE CAN ALLOW MINUTE AMOUNTS OF A CANCERCAUSING SUBSTANCE TO BE PRESENT ON TOMATOES BUT IT CAN'T ALLOW EVEN MINUTE TRACES IN TOMATO SAUCE IN SETTING THE TOLERANCE LEVELS ON RAW FOOD THE EPA CAN CONSIDER SUCH ECONOMIC FACTORS AS THE BENEFITS TO GROWERS OR PESTICIDE PRODUCERS UNDER THE NEW UNIFORM APPROACH SUCH ECONOMIC BENEFITS WOULD NO LONGER BE TAKEN INTO ACCOUNT INSTEAD THE GOVERNMENT WOULD DETERMINE THE LEVEL AT WHICH THE SUBSTANCE POSED A NEGLIGIBLE RISK TO HUMAN HEALTH FOR CANCERCAUSING SUBSTANCES THAT WOULD BE THE LEVEL OF RESIDUES THAT WOULD LEAD TO ONE ADDITIONAL CANCER CASE FOR EVERY MILLION PEOPLE FOR SUBSTANCES THAT CAUSE OTHER HEALTH PROBLEMS REGULATORS WOULD DETERMINE THE LEVEL BELOW WHICH THERE ARE NO DETECTABLE ADVERSE EFFECTS IN LABORATORY ANIMALS THEN THEY WOULD INCREASE THE SAFETY FACTOR BY A HUNDREDFOLD THE ADMINISTRATION'S PROPOSALS ON THE SOCALLED DELANEY CLAUSE AS THE 1958 LAW IS KNOWN ARE IN PART A RESPONSE TO A FEDERAL APPEALS COURT DECISION LAST YEAR IN THAT CASE THE COURT IN SAN FRANCISCO STRUCK DOWN A BUSH ADMINISTRATION EFFORT TO BEGIN APPLYING A NEGLIGIBLERISK STANDARD TO PROCESSED FOOD WITHOUT FIRST GETTING THE DELANEY CLAUSE REPEALED THE PROPOSALS WILL JOIN OTHER LEGISLATION DEALING WITH THE PROVISION THOSE BILLS GENERALLY WOULD ALLOW MINUTE TRACES OF PESTICIDES IN PROCESSED FOODS BUT THEY VARY GREATLY AS TO HOW STRICT THE APPLICABLE SAFETY STANDARDS WOULD BE OTHER PROVISIONS IN THE DRAFT PACKAGE WOULD BAN THE EXPORT OF PESTICIDES THAT HAVE BEEN CANCELED IN THE US FOR HEALTH OR SAFETY CONCERNS THIS IS PARTLY DESIGNED TO CLOSE THE CIRCLE OF POISON UNDER WHICH BANNED PESTICIDES ARE EXPORTED FROM THE US AND THEN RETURN IN IMPORTED FOOD MAKE IT EASIER FOR THE EPA TO REMOVE DANGEROUS PESTICIDES FROM THE MARKETPLACE BY LOWERING THE BURDEN OF PROOF REQUIRED BEFORE THE AGENCY CAN ACT AGAINST A SUBSTANCE IT CONSIDERS HARMFUL ENCOURAGE PESTICIDE PRODUCERS TO KEEP SAFE PESTICIDES ON THE MARKET A 1988 LAW REQUIRES PRODUCERS TO SEEK NEW APPROVAL FOR MANY PESTICIDES ALREADY ON THE MARKET SOME CHEMICAL COMPANIES HAVE DECIDED AGAINST DOING SO FOR MANY MINORCROP PRODUCTS WITH LOWER SALES POTENTIAL RATHER THAN CONDUCTING THE COSTLY TESTS REQUIRED BY THE EPA IMPROVE THE GOVERNMENT'S DATA ON PESTICIDE USE BEEF UP THE EPA'S POWERS TO ENFORCE PESTICIDE LAW 9308200030 930820 CREDIT MARKETS LONG YIELD HITS A NEW LOW AS RALLY ROLLS ON AMID VERY VERY BIZARRE' GAP IN BENCHMARKS BY THOMAS T VOGEL JR AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK A TOPSYTURVY DAY IN THE BOND MARKET ENDED WITH YIELDS OF MOST TREASURY MATURITIES DROPPING SHARPLY AS THE BOND MARKET RALLY PICKED UP STEAM THE BENCHMARK 30YEAR TREASURY BOND YIELD DROPPED TO 620 FROM 625 THAT'S THE LOWEST YIELD SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE 30YEAR BOND IN 1977 ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS YIELD ROSE NEARLY 3/4 POINT OR NEARLY 750 FOR A BOND WITH A 1000 FACE VALUE TO 100 19/32 THE 10YEAR NOTE YIELD FELL FROM 567 TO 561 THE LOWEST SINCE APRIL 1971 ITS PRICE ROSE MORE THAN 3/8 POINT TO 101 WHILE MOST TREASURY SECURITIES ENDED AT LOWER YIELDS FOR MOST OF THE DAY THE 30YEAR BOND WAS THE ONLY ONE MOVING EARLY IN THE DAY ITS PRICE WAS UP 3/4 POINT BUT BY EARLY AFTERNOON IT HAD GAINS OF 1/4 POINT THEN IT RALLIED BACK AGAIN AT DAY'S END AS THE 30YEAR BOND BOUNCED ABOUT TRADERS WERE SCRATCHING THERE HEADS AND TRYING TO FIGURE OUT WHAT WAS GOING ON THAT'S BECAUSE THE BENCHMARK 625 30YEAR BOND SOLD JUST LAST WEEK WAS OUTPERFORMING THE PREVIOUS BENCHMARK 7125 30YEAR BOND BY A HUGE MARGIN YESTERDAY THE 625 ISSUE WAS YIELDING NEARLY 017 PERCENTAGE POINT LESS THAN THE 7125 ISSUE SUCH A WIDE GAP IS RARE AND IT MAKES LIFE DIFFICULT FOR BOND TRADERS WHO COUNT ON ALL ISSUES OF THE 30YEAR BOND TRADING MUCH CLOSER TO EACH OTHER THIS IS VERY VERY BIZARRE SAID STEVEN WOOD DIRECTOR OF FINANCIAL MARKET RESEARCH AT BANK OF AMERICA OUR HEAD BOND TRADER IS ABOUT READY TO PULL HIS HAIR OUT HE ADDED IT'S AN EXTRAORDINARY SET OF CIRCUMSTANCES SAID J PATRICK ROTHSTEIN HEAD OF GOVERNMENT TRADING AT BEAR STEARNS & CO AND IT'S CREATING A LOT OF DISCREPANCIES AMONG DIFFERENT BOND ISSUES ONE OF THE PROBLEMS FACING TRADERS AND INVESTORS IS IN THE MARKET FOR BOND FUTURES CONTRACTS WHICH ARE AGREEMENTS TO BUY OR SELL BONDS AT SET PRICES ON SET DATES IN THE FUTURE THIS MARKET IS OFTEN USED BY TRADERS AND INVESTORS TO HEDGE AGAINST BETS IN THE CASH MARKET FOR TREASURY SECURITIES BUT THE WIDENING YIELD GAP BETWEEN THE NEW 30YEAR BOND AND THE OLD ONE HAS SPURRED A SIMILAR WIDENING OF THE YIELD SPREAD BETWEEN THE NEW BOND AND BOND FUTURES CONTRACTS IT HAS WREAKED HAVOC ON THOSE TRYING TO USE FUTURES AS A HEDGE THAT SPREAD KNOWN AS THE BASIS HAS UNDERGONE A POWERFUL TRANSITION IN THE PAST TWO WEEKS SURGING FROM ABOUT 1 26/32 POINTS WITH THE OLD 7125 BOND A FEW WEEKS AGO TO 7 1/32 POINTS ON THE NEW 625 BOND YESTERDAY THE WIDENING SPREAD HAS MADE IT INCREASINGLY DIFFICULT AND EXPENSIVE TO USE THE FUTURES MARKET AS A HEDGE OR INSURANCE AGAINST RISING YIELDS IN THE CASH MARKET FROM THE BEGINNING OF JULY IF YOU COMPARED WHAT YOU NEED TO HEDGE 100 MILLION BACK THEN WITH WHAT YOU NEED NOW WHAT YOU NEED IS ABOUT A 25 INCREASE IN THE AMOUNT OF FUTURES THAT YOU NEED TO SHORT SAID JOE MULLALLY A FIXEDINCOME STRATEGIST AT FIRST BOSTON CORP A SHORT IS WHEN A TRADER SELLS A BORROWED SECURITY IN HOPES OF BUYING IT BACK LATER AT A LOWER PRICE AND POCKETING THE DIFFERENCE NEWS OF MUNICIPAL DEFEASANCE PROGRAMS FURTHER FUELED THE RALLY AMONG SHORTERTERM ISSUES WITH INTEREST RATES DROPPING MANY MUNICIPALITIES ARE RUSHING TO LOCK IN LOWER RATES BEFORE CALLING OLDER HIGHERYIELDING BONDS IN A DEFEASANCE PROGRAM WHEN THE BONDS ARE NOT YET CALLABLE MUNICIPALITIES INVEST PROCEEDS FROM NEW BOND OFFERINGS IN TREASURY SECURITIES WITH SIMILAR MATURITIES ALSO FUELING THE RALLY WAS THE GOVERNMENT'S REPORT ON THE US TRADE DEFICIT IN JUNE WHICH REACHED 1206 BILLION WELL ABOVE WHAT MOST ECONOMISTS FORECAST BOND MARKET TRADERS INTERPRETED THE REPORT AS SUGGESTING EVEN SLOWER ECONOMIC GROWTH IN THE SECOND QUARTER THAN BELIEVED TRADERS AND ANALYSTS SAID THE TRADE DATA INDICATED THERE COULD BE A SIGNIFICANT DOWNWARD ADJUSTMENT TO PRELIMINARY DATA ON SECONDQUARTER GROWTH IN THE GROSS DOMESTIC PRODUCT WHICH WAS REPORTED TO HAVE GROWN AT A 16 ANNUAL RATE ASIDE FROM THE ECONOMIC REPORTS EXTREMELY STRONG DEMAND FOR LONGTERM TREASURY SECURITIES CONTINUE TO BUILD MUCH OF IT HAS COME FROM SPECULATORS LOOKING TO PROFIT FROM THE NARROWING YIELD GAP BETWEEN THE 30YEAR BOND AND SHORTERTERM SECURITIES ONE WAY OF PROFITING FROM THE NARROWING GAP IS TO BUY THE 30YEAR BOND AND SELL SHORTERTERM SECURITIES ANOTHER FACTOR PREVALENT IN PAST WEEKS HAS BEEN THE RUSH OF MONEY MANAGERS TO INVEST THE FLOODS OF MONEY BEING PUMPED INTO BOND FUNDS BY INVESTORS SEARCHING FOR HIGHER YIELDS FACED WITH DROPPING YIELDS AND CASH THAT NEEDS TO BE INVESTED IMMEDIATELY THESE MANAGERS NEED TO INCREASE THE AVERAGE MATURITIES OF THEIR FUNDS IN ORDER TO BOOST RETURNS MANY OF THEIR HIGHERYIELDING SECURITIES HAVE BEEN CALLED BY ISSUERS LOOKING TO REFINANCE AT LOWER RATES BECAUSE OF ITS LIQUIDITY THE 30YEAR TREASURY BOND IS A POPULAR PLACE TO INVEST FOR THESE MONEY MANAGERS THE REDUCTION OF 30YEAR BOND AUCTIONS FROM FOUR PER YEAR TO TWO HAS EXACERBATED DEMAND MEANWHILE THE TREASURY SOLD 1528 BILLION OF ONEYEAR BILLS HERE ARE THE RESULTS OF THE SALE RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR THE BILLS ARE DATED AUG 26 AND MATURE AUG 25 1994 COMPANIES TOOK A BREATHER FROM THE FURIOUS ISSUANCE PACE SEEN EARLIER THIS WEEK AND OFFERED ONLY THREE INVESTMENTGRADE ISSUES FOR A TOTAL OF 300 MILLION ON TUESDAY AND WEDNESDAY MORE THAN 7 BILLION OF NEW CORPORATE BONDS HIT THE MARKET BUT MARKET WATCHERS SEE THE SLOWDOWN AS ONLY TEMPORARY WITH RATES AT LEVELS THAT CORPORATIONS CAN HARDLY IGNORE I SUSPECT THE NEXT COUPLE WEEKS WILL BE ACTIVE ONES SAID JOHN MALVEY CORPORATE STRATEGIST AT LEHMAN BROTHERS INC IN SECONDARY TRADING CONFUSION PERSISTS OVER WHICH BENCHMARK TO USE TO PRICE BONDS WITH 30YEAR MATURITIES THE NEW 30YEAR BOND SOLD LAST THURSDAY IS TRADING TO YIELD 620 BUT THE MARKET CONSENSUS IS THAT AT SUCH LEVELS THE NEW BOND IS NOT A GOOD BAROMETER OF THE LONGTERM COST OF CAPITAL SAID MR MALVEY THERE IS LESS DISTORTION WITH THE SEASONED 7125 30YEAR BOND WHICH YIELDED 637 YESTERDAY ASIDE FROM CONFUSION AMONG LONGERDATED ISSUES PRICES OF INVESTMENTGRADE BONDS WERE GENERALLY UNCHANGED JUNK BOND ISSUES WERE UNCHANGED TO UP 1/4 POINT ONE UTILITY BOND OFFERED YESTERDAY FROM POTOMAC ELECTRIC POWER CO OF WASHINGTON DC WAS PRICED OFF THE NEW 30YEAR BOND BY FIRST BOSTON CORP FIRST BOSTON WON THE RIGHT TO ISSUE THE BONDS IN A COMPETITIVE BID MEANING IT WAS THE FIRM THAT OFFERED PEPCO THE LOWEST YIELD THE 100 MILLION ISSUE OF 30YEAR FIRST MORTGAGE BONDS CAME WITH A 6875 COUPON AT A PRICE OF 9844 TO YIELD 7 BY PRICING OFF THE NEW BOND FIRST BOSTON COULD OFFER PEPCO A YIELD THAT WAS ABOUT 017 PERCENTAGE POINT LESS THAN IF THE ISSUE HAD BEEN PRICED OFF THE SEASONED 30YEAR TREASURY BOND MAKING IT EASIER FOR FIRST BOSTON TO OFFER A LOW BID PRICES OF MUNICIPAL BONDS ENDED NARROWLY MIXED CLOSING 1/8 POINT LOWER TO 3/8 HIGHER WHILE BUYING WASN'T ALL THAT HEAVY THE MOOD ABOUT MUNICIPALS IS STILL POSITIVE AND THE MARKET'S FORTUNES ARE EXPECTED TO REMAIN QUITE FAVORABLE IN THE WEEKS AHEAD IN SECONDARY TRADING THE 550 REVENUE BONDS DUE 2023 FROM THE REGIONAL AIRPORT AUTHORITY OF LOUISVILLE AND JEFFERSON COUNTY KENTUCKY FINISHED UNCHANGED AT 97 1/2 TO YIELD 567 HOWEVER THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY'S 525 REFUNDING BONDS OF 2021 ENDED 1/8 HIGHER AT 98 1/8 TO YIELD 535 IN PRIMARY DEALINGS THE LARGEST ISSUE PRICED YESTERDAY WAS THE MICHIGAN BUILDING AUTHORITY'S 4901 MILLION OF SERIES I OF 1993 REVENUE REFUNDING BONDS A MORGAN STANLEY & CO GROUP GAVE THE BONDS YIELDS THAT RANGED FROM 230 IN OCTOBER 1993 TO 545 IN 2016 INCLUDED IN THE ISSUE ARE 4736 MILLION OF SERIAL AND TERM BONDS AND 165 MILLION OF SPECIAL SINKINGFUND BONDS SEPARATELY MOODY'S INVESTORS SERVICE INC SAID IT RATED 134 BILLION OF NEWISSUE MUNICIPAL VOLUME DURING THE FIRST HALF OF THE YEAR NEARLY 55 BILLION OR 41 OF THAT ISSUANCE WAS INSURED THAT WAS A RECORD INSURED DOLLAR AMOUNT THE RATING AGENCY SAID CURRENTCOUPON MORTGAGE SECURITIES ENJOYED BETTER BUYING INTEREST YESTERDAY BUT SOME OTHER SECTORS OF THE MARKET FELL VICTIM TO RATE CONCERNS THE CURRENT COUPONS ARE TIGHTENING NOTED RANDY MERK HEAD OF TAXABLE PORTFOLIOS AT BENHAM GROUP A MUTUAL FUND CONCERN THAT'S A WAY OF SAYING THOSE SECURITIES NOW BEING SOLD INTO THE SECONDARY MARKET BY MORTGAGE BANKERS SUCH AS THE 65 COUPONS ARE BECOMING WORTH MORE IN RELATION TO TREASURYS SOME INVESTORS ARE SELLING SOME HIGHERCOUPON ISSUES CONSIDERED AT RISK OF BEING PREPAID DUE TO FALLING INTEREST RATES AND INSTEAD ARE BUYING THE LOWERCOUPON 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 FOR EXAMPLE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 ISSUES FOR SEPTEMBER DELIVERY ENDED 15/32 HIGHER AT 100 22/32 THE 9 MORTGAGE SECURITIES MEANWHILE FINISHED 2/32 LOWER AT 3/32 AMONG OTHER CURRENT COUPONS FOR SEPTEMBER DELIVERY FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 ISSUES AND FEDERAL HOME LOAN MORTGAGE CORP GOLD 65 ISSUES BOTH FINISHED 15/32 HIGHER AT 100 18/32 AND 100 24/32 RESPECTIVELY 9308200029 930820 BUSINESS BRIEF CELUTEL INC CENTURY TELEPHONE WILL PAY ABOUT 105 MILLION FOR STOCK CENTURY TELEPHONE ENTERPRISES INC SAID IT AGREED TO ACQUIRE THE STOCK OF CELUTEL INC FOR ABOUT 105 MILLION IN CASH AND STOCK AND THE ASSUMPTION OF 40 MILLION OF CELUTEL'S DEBT BASED IN MONROE LA THE TELECOMMUNICATIONS CONCERN SAID IT WILL PAY HALF THE PURCHASE PRICE IN CASH AND HALF IN STOCK THE NUMBER OF SHARES WILL BE BASED ON AN AVERAGE OF ITS CLOSING PRICE FOR A 10DAY PERIOD PRIOR TO THE TRANSACTION'S CLOSING THE TRANSACTION IS SUBJECT TO APPROVAL OF CELUTEL SHAREHOLDERS AND REGULATORS CENTURY SAID IT EXPECTS THE ACQUISITION TO DILUTE ITS EARNINGS BY NINE CENTS TO 11 CENTS A SHARE IN 1994 CELUTEL PROVIDES CELLULAR TELEPHONE SERVICE TO 20000 CUSTOMERS IN MISSISSIPPI AND TEXAS 9308200028 930820 NASD PUNISHES 12 COMPANIES FOR INFRACTIONS INDIVIDUALS ALSO DISCIPLINED WITH FINES SUSPENSIONS FOR SECURITIES VIOLATIONS BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC SAID IT DISCIPLINED 12 COMPANIES AND SEVERAL INDIVIDUALS FOR VIOLATING ITS RULES AND SECURITIES LAWS ADAMS SECURITIES INC LAS VEGAS WAS EXPELLED FOR SELLING STOCK TO CUSTOMERS AT UNFAIR PRICES INCLUDING MARKUPS RANGING FROM ABOUT 5 TO 88 SEVERAL INDIVIDUALS FROM ADAMS WERE DISCIPLINED JAMES WILLIAM ADAMS A PRINCIPAL FROM HENDERSON NEV WAS BARRED MICHAEL R WALDMAN ALSO FROM HENDERSON WAS FINED 19000 JOHN BASSELL HAYDEN CHICO CALIF WAS FINED 12935 AND MARK DAVID LONG DENVER WAS FINED 13408 TRIPARK SECURITIES INC CHAPEL HILL NC WAS EXPELLED AND FINED 15000 FOR NOT UPHOLDING CERTAIN ASPECTS OF A PRIVATE PLACEMENT MEMORANDUM FOR THREE OFFERINGS OF LIMITED PARTNERSHIP INTERESTS PRINCIPAL JEFFREY R BOAK ALSO OF CHAPEL HILL WAS BARRED HUTCHISON FINANCIAL CORP BASED IN PHOENIX AND NOW KNOWN AS PRINCETON AMERICAN EQUITIES CORP WAS FINED 25000 AND SUSPENDED FOR SIX DAYS FOR FAILING TO MAINTAIN MINIMUM NET CAPITAL AND FILING INACCURATE REPORTS THE ACTION HAS BEEN APPEALED TO A US COURT OF APPEALS AND A STAY WAS GRANTED FOLLOWING THE TERM OF THE SUSPENSION IN MIDJULY UNLESS OTHERWISE NOTED FIRMS AND INDIVIDUALS COULDN'T BE REACHED OR HAD NO COMMENT CENPAC SECURITIES CORP AND PRINCIPAL GERALD NELSON BOVEE BOTH OF PHOENIX WERE JOINTLY AND SEVERALLY FINED 20000 AND MR BOVEE WAS SUSPENDED FOR 10 DAYS FOR FAILING TO MAINTAIN MINIMUM NET CAPITAL AND FILING INACCURATE REPORTS FIRST AMERICAN BILTMORE SECURITIES INC AND PRINCIPAL J GORDON NEVERS BOTH OF PHOENIX WERE JOINTLY AND SEVERALLY FINED 25000 AND REQUIRED TO PAY RESTITUTION OF 98978 PLUS INTEREST MR NEVERS WAS SUSPENDED 30 DAYS NASD SAID THE FIRM FAILED TO MAINTAIN MINIMUM NET CAPITAL AND CONDUCTED STOCK TRANSACTIONS AT UNFAIR PRICES WITH MARKUPS AND MARKDOWNS RANGING FROM ALMOST 8 TO 52 ABOVE OR BELOW PREVAILING MARKET PRICES FIRST INLAND SECURITIES INC SPOKANE WASH AND PRINCIPAL GLEN LAMOYNE OTTMAR BOTHELL WASH WERE JOINTLY AND SEVERALLY FINED 5000 AND REQUIRED TO PAY 29393 IN RESTITUTION TO CUSTOMERS THE FIRM CONDUCTED STOCK TRANSACTIONS AT UNFAIR PRICES WITH MARKUPS RANGING FROM 15 TO 57 OVER THE PREVAILING MARKET PRICE NASD SAID THE ACTION HAS BEEN APPEALED TO THE SECURITIES AND EXCHANGE COMMISSION THE NASD ALSO DISCIPLINED JW GANT & ASSOCIATES INC OF ENGLEWOOD COLO CHARLES F KIRBY OF LITTLETON COLO AND JAMES PATRICK DRIVER OF ENGLEWOOD THE FIRM WAS FINED 125000 JOINTLY AND SEVERALLY WITH ONE INDIVIDUAL FINED ANOTHER 125000 JOINTLY AND SEVERALLY WITH ANOTHER INDIVIDUAL AND FINED 62500 JOINTLY AND SEVERALLY WITH A THIRD THE FIRM WAS ALSO REQUIRED TO PAY 687500 IN RESTITUTION JOINTLY AND SEVERALLY WITH AN INDIVIDUAL TO CUSTOMERS MR KIRBY WAS FINED 5000 JOINTLY AND SEVERALLY AND SUSPENDED FIVE DAYS MR DRIVER MADE AN OFFER OF SETTLEMENT RESULTING IN A FINE OF 10000 AND A 30DAY SUSPENSION NASD SAID THE FIRM RESTRICTED COMPETITION BY CONTROLLING THE MARKET IN A STOCK CONDUCTED STOCK TRANSACTIONS AT UNFAIR PRICES WITH MARKUPS RANGING FROM ABOUT 5 TO 84 OVER THE PREVAILING MARKET PRICE AMONG OTHER CHARGES LA JOLLA SECURITIES CORP AND PRINCIPAL BRUCE ALAN BIDDICK BOTH OF LA JOLLA CALIF WERE JOINTLY AND SEVERALLY FINED EACH RESPONSIBLE FOR THE FULL AMOUNT 11475 WITHOUT ADMITTING OR DENYING THE ALLEGATIONS THAT THE FIRM FAILED TO APPROVE CERTAIN ACCOUNTS BEFORE STOCK TRANSACTIONS AND FAILED TO RECEIVE WRITTEN AGREEMENTS MR BIDDICK SAID HE HAD BEEN UNAWARE OF THE IMPROPRIETIES AND HAD TO TAKE THE FALL FOR TWO FORMER EMPLOYEES PENALIZED BY THE NASD BECAUSE HE WAS IN A SUPERVISORY ROLE SECURITIES AMERICA INC OMAHA NEB WAS FINED 10000 WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT IT FAILED TO ADEQUATELY SUPERVISE BROKERS AND BROKER CHARLES FELIX TUMMINO ROGUE RIVER ORE WAS FINED 39139 FOR DISTRIBUTING A SALES BROCHURE THAT FAILED TO DISCLOSE MATERIAL FACTS AND MADE POTENTIALLY MISLEADING CLAIMS AMONG OTHER CHARGES NASD SAID MR TUMMINO CHARGING THAT THE FINE WAS RIDICULOUS SAID THE BROCHURE WAS NOT AN INVESTMENT PROSPECTUS BUT PROVIDED INFORMATION ABOUT THE PREMIUM FINANCING INDUSTRY AND THAT HE HAD BEEN MISLED BY THE FIRM THAT PUBLISHED IT ATLANTA SECURITIES & INVESTMENTS INC ATLANTA WAS FINED 70000 JOINTLY AND SEVERALLY WITH OTHER INDIVIDUALS AND REQUIRED TO PAY 118300 IN RESTITUTION PLUS INTEREST TO CUSTOMERS NASD SAID THE FIRM FAILED TO MAINTAIN MINIMUM NET CAPITAL FAILED TO MAKE CERTAIN RECORDS SOLD SHARES AT UNFAIR PRICES WITH MARKUPS EXCEEDING 128 AND PERMITTED AN INDIVIDUAL TO FUNCTION AS PRESIDENT AND SALES REPRESENTATIVE WITHOUT PROPER REGISTRATION AMONG OTHER CHARGES DOMINICK & DOMINICK INC NEW YORK WAS FINED 50000 WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT IT FAILED TO PROVIDE PROPER SUPERVISION OF TWO BROKERS THE FIRM SAID IT ACCEPTED NASD'S FINDINGS TO AVOID THE TIME AND COST REQUIRED TO DEFEND ITSELF THE FIRM SAID IT MADE RESTITUTION TO AFFECTED CUSTOMERS AT THE TIME THE EVENT WAS DISCOVERED IN 1991 TOUCHSTONE CAPITAL CORP DALLAS WAS FINED 20000 AND REQUIRED TO DISGORGE 16122 IN COMMISSIONS PAID TO AN UNREGISTERED SALESMAN THE FOLLOWING INDIVIDUALS WERE DISCIPLINED HENRY WILLIAM ABTS III LOS ANGELES FINED 15000 AND SUSPENDED 90 DAYS THERON HUGH MURPHY SIMI VALLEY CALIF FINED 5000 AND SUSPENDED 30 DAYS JAY LYNN MURPHY SIMI VALLEY FINED 10000 AND SUSPENDED 45 DAYS DONALD C ALAIMO MT LAUREL NJ FINED 20000 AND BARRED CHARLES KING BALDWIN CHARLOTTE NC FINED 26250 BARRED AND ORDERED TO PAY 1250 IN RESTITUTION TO A CUSTOMER ROBERT J BERRY SEWELL NJ FINED 30000 AND BARRED WILLIAM BEZEMER GILCHING GERMANY FINED 10000 AND SUSPENDED FIVE DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS BRIAN J BONNER CORAL SPRINGS FLA FINED 10926 AND BARRED LARRY E BREWER GERMANTOWN TENN FINED 13500 AND SUSPENDED A WEEK WITHOUT ADMITTING OR DENYING ALLEGATIONS DON ALLEN BURK DELRAY BEACH FLA FINED 20000 AND BARRED AND TIMOTHY L BURKES PLEASANTON CALIF FINED 16200 AND SUSPENDED 180 DAYS MR BURKES HAS APPEALED THIS ACTION TO A US APPEALS COURT ALSO DOUGLAS DUANE CHAPMAN SALINA KAN WAS FINED 5000 AND SUSPENDED FOR SIX MONTHS WITHOUT ADMITTING OR DENYING ALLEGATIONS KENNETH R CLARK LARAMIE WYO FINED 5000 AND SUSPENDED FIVE DAYS RICHARD A CROSBY DENVER FINED 10000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS GARY L CUNNINGHAM MONTE VISTA COLO FINED 3800 AND BARRED ANTOINE DOUMAD RANCHO CALIF FINED 70000 AND BARRED CYRUS B FOLLMER JR GREENVILLE NC FINED 50000 BARRED AND REQUIRED TO PAY 53000 IN RESTITUTION TO CUSTOMERS ANDREW H GEYER KINGS PARK NY FINED 5000 AND SUSPENDED FIVE DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS CASEY KAREN GREEN HUNTINGTON BEACH CALIF FINED 20000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS GILBERT M HAIR NEWBURY PARK CALIF FINED 13250 VLADIMIR CHORNY CAMARILLO CALIF FINED 18500 MR CHORNY SAID HE REGISTERED A TRANSACTION TWO WEEKS LATE BUT DIDN'T HAVE ANY INTENTION TO VIOLATE ANYTHING HAROLD B HAYES PLEASANT HILL CALIF WAS FINED 300000 AND BARRED BUT SAID HE HAS APPEALED THE DECISION TO THE SEC STEPHEN F HINCH CHARLOTTE NC FINED 250000 BARRED AND REQUIRED TO PAY RESTITUTION OF 99673 PLUS INTEREST TO HIS MEMBER FIRM JOHN M HULLEY GRAFTON WVA WAS FINED 15000 AND BARRED MICHAEL J JANIK CHERRY HILL NJ FINED 10000 AND SUSPENDED 20 DAYS JOHN EARL LAW MORGAN TEXAS FINED 50000 BARRED AND REQUIRED TO PAY 657886 IN RESTITUTION TO HIS FIRM AND CUSTOMERS WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT HE CONVERTED FUNDS TO HIS OWN USE ADAM STUART LEVINE NEW YORK FINED 40000 AND BARRED ELLEN LAPIN MARGARETTEN NORTH MIAMI FLA FINED 10000 AND SUSPENDED 90 DAYS CALVIN THOMAS MCKIBBEN DALLAS FINED 2500 AND SUSPENDED 30 DAYS HECTOR CRISTOBAL CARRENO DALLAS FINED 10000 AND SUSPENDED 30 DAYS PAUL A MOCHINAL ARLINGTON VA FINED 20000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS CHARLES FRANCES MOLNAR LAWRENCEVILLE GA FINED 3500 AND SUSPENDED THREE DAYS WITHOUT ADMITTING OR DENYING ALLEGATIONS RAYMOND EDWARD MOORE SANTA ROSA CALIF FINED 20000 AND SUSPENDED 30 DAYS JOHN R MOYSEY GREAT FALLS VA FINED 15000 AND 9308200027 930820 MARKETING BRIEF NOTED AD REVENUE TIMES MIRROR CO'S NEWSPAPER PUBLISHING GROUP HAD A 05 DECLINE IN ADVERTISING REVENUE FOR THE FIVE WEEKS ENDED AUG 1 REVENUE FELL TO 1238 MILLION FROM 1245 MILLION A YEAR EARLIER 9308200026 930809 ABREAST OF THE MARKET ANALYSTS SEE PROFITS POWERING MORE STOCK GAINS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE STOCK MARKET STILL HAS PLENTY OF PROFIT POWER BEHIND IT MONEY MANAGERS AND STRATEGISTS SAY GROWTH IN CORPORATE PROFITS PICKED UP MOMENTUM IN THE SECOND QUARTER PROMPTING ANALYSTS TO REVISE UPWARD THEIR EARNINGS ESTIMATES FOR THE FULL YEAR AND RAISING PROSPECTS OF A CONTINUING CLIMB IN STOCK PRICES ACCORDING TO A SURVEY OF 640 COMPANIES BY ZACKS INVESTMENT RESEARCH CORPORATE EARNINGS FROM CONTINUING OPERATIONS BEFORE SPECIAL CHARGES OR GAINS CLIMBED 186 IN THE SECOND QUARTER FROM A YEAR EARLIER PROFITS IN THE FIRST QUARTER GREW 176 FROM A YEAR EARLIER WHAT HAS SURPRISED A LOT OF PEOPLE ARE THE BENEFITS FROM RESTRUCTURING AND COSTCUTTING SAYS BENJAMIN ZACKS EXECUTIVE VICE PRESIDENT OF ZACKS IT TAKES TIME TO BUILD AND IT'S STARTING TO BEAR FRUIT MR ZACKS SAYS PROFITS WERE STRONG ENOUGH TO ENCOURAGE SOME ANALYSTS TO BOOST THEIR FORECASTS FOR EARNINGS GROWTH IN 1993 HEADING INTO THE SECONDQUARTER REPORTING SEASON ANALYSTS HAD BEEN SLASHING THEIR FULLYEAR ESTIMATES JUST 30 OF THEIR REVISIONS BEFORE THE RELEASE OF SECONDQUARTER RESULTS WERE POSITIVE NOW THAT FIGURE HAS CLIMBED TO 40 IN LARGE PART AS A RESULT OF STRONG GAINS AMONG FINANCIAL SERVICES CONCERNS MR ZACKS SAYS THAT GAIN IS A BULLISH SIGNAL CONSIDERING THAT ANALYSTS ARE MUCH MORE PRONE TO CUT ESTIMATES THAN RAISE THEM HE ADDS STEVEN RESNICK SENIOR INVESTMENT STRATEGIST AT COWEN & CO SAYS HE IS ENCOURAGED BY THE POSITIVE EARNINGS TREND ESPECIALLY AMID THE SLUGGISH ECONOMY HE SAYS THAT EVEN THOUGH GROSS DOMESTIC PRODUCT GREW AN ANEMIC 16 IN THE SECOND QUARTER 67 OF SOME 1600 COMPANIES REPORTING SECONDQUARTER EARNINGS BETWEEN JULY 9 AND JULY 30 ANNOUNCED RESULTS THAT WERE IN LINE WITH OR BETTER THAN ANALYSTS' FORECASTS MR RESNICK SEES THE ECONOMY PERFORMING BETTER IN THE SECOND HALF AND EARNINGS REFLECTING THE IMPROVEMENT I'M NOT TALKING ABOUT A RUNAWAY ECONOMY IN THE SECOND HALF JUST A BETTER ECONOMY HE SAYS BUT COMPANIES HAVE A BETTER OPPORTUNITY NOW TO LEVERAGE MODERATE GAINS IN THE ECONOMY INTO MEANINGFUL GAINS IN EARNINGS AND EARNINGS SURPRISES ALSO ENCOURAGING MR RESNICK SAYS IS THAT A STOCK PRICE STILL JUMPS WHEN A COMPANY REPORTS SURPRISE POSITIVE EARNINGS THAT SUGGESTS STOCKS CONTINUE TO BENEFIT FROM BULL MARKET DRIVE MR RESNICK SAYS WHAT SHOULD WORRY YOU IS IF A POSITIVE EARNINGS SURPRISE DOESN'T BOOST THE STOCK PRICE MR RESNICK PREDICTS THAT THE STOCK MARKET WILL RACK UP FURTHER GAINS IN THE SECOND HALF AS A RESULT OF EARNINGS MOMENTUM BUT HE EXPECTS VOLATILITY TO INCREASE AS ECONOMICALLY SENSITIVE STOCKS THE BIG WINNERS IN THE FIRST HALF RESPOND TO TRENDS IN THE ECONOMY MR RESNICK FORECASTS A TOTAL RETURN OF 8 ON THE S&P 500 FOR THE 12 MONTHS FROM JUNE THE ENGINE DRIVING EARNINGS GROWTH IN THE SECOND HALF WILL BE NOT ONLY THE CONTINUING BENEFITS OF CORPORATE RESTRUCTURING BUT ALSO A PICKUP IN CONSUMER SPENDING SAYS JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ & CO MR MCALINDEN SAYS STRONGER SPENDING SPURS HIGHER PRODUCTION AND BETTER PROFITS AND A STRONGER STOCK MARKET TOO I THINK THERE'LL BE MORE NEW HIGHS IN THE DOW INDUSTRIALS MAYBE AS OFTEN AS ONCE OR TWICE A WEEK THROUGH LABOR DAY MR MCALINDEN SAYS HE PREDICTS A SUMMER RALLY THAT WILL TAKE THE DOW INDUSTRIALS UP TO THE 3700 LEVEL THE BIG THREE AUTO MAKERS ARE EXPECTED TO CONTINUE SHOWING GOOD PROFIT GAINS AFTER REPORTING BETTERTHANEXPECTED EARNINGS FOR THE SECOND QUARTER US CAR MAKERS ARE BENEFITING FROM THE STRONG YEN WHICH MAKES JAPANESE CARS MORE EXPENSIVE AND FROM THE ADVANCING AGE OF MANY AUTOS CURRENTLY ON THE ROAD MOST IMPORTANT HOWEVER IS THAT AFTER HAVING THE LIFE SCARED OUT OF THEM IN THE 1980S THE AUTO MAKERS ARE NOW PUTTING OUT VERY GOOD PRODUCTS SAYS RICHARD PUCCI SENIOR VICE PRESIDENT OF I/B/E/S A SERVICE THAT MONITORS ANALYSTS' EARNINGS ESTIMATES ACCORDING TO I/B/E/S THE AUTO MAKERS' EARNINGS SOARED 118 IN THE SECOND QUARTER FROM A YEAR EARLIER BANKS WHICH REPORTED AMONG THE BEST EARNINGS IN THE SECOND QUARTER ALSO ARE SEEN ADDING TO THEIR GAINS IN THE MONTHS AHEAD ANALYSTS SAY BANKS WILL CONTINUE TO BENEFIT FROM LOW SHORTTERM INTEREST RATES THAT ALLOW HANDSOME SPREADS BETWEEN WHAT THEY PAY TO DEPOSITORS AND WHAT THEY CHARGE FOR LOANS THE LARGE MULTINATIONAL BANKS ALSO ARE EXPECTED TO REAP LARGE PROFITS FROM CURRENCY TRADING ACCORDING TO I/B/E/S BANKS REPORTED EARNINGS GROWTH IN THE SECOND QUARTER OF 353 FROM THE YEAR EARLIER PROFIT GROWTH IN THE FIRST QUARTER WAS 257 THE STOCK MARKET CAN NO LONGER RELY ON FALLING INTEREST RATES TO PUSH PRICES HIGHER SAYS MR PUCCI OF I/B/E/S HE FORESEES A CORRECTION OF 7 TO 10 AFTER THE SUMMER SPARKED BY A SMALL RISE IN RATES BUT AFTER THAT HE SEES STOCK PRICES RESUMING AN UPWARD TREND IT'LL BE MORE OF A STOCK PICKERS' MARKET THOSE THAT COME THROUGH WITH BETTER EARNINGS WILL DO BETTER MR PUCCI SAYS IT'S NOT THE CASE OF THE RISING TIDE THAT LIFTS ALL BOATS AS YOU HAD WHEN RATES WERE FALLING PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES SAYS EARNINGS WILL CONTINUE TO IMPROVE THE REST OF THIS YEAR PARTLY BECAUSE PROFITS A YEAR EARLIER WERE SO MEAGER GOOD EARNINGS IN THE SECOND HALF ARE A CHIP SHOT BECAUSE YOU'RE COMPARING AGAINST SUCH INCREDIBLY BAD EARNINGS LATE LAST YEAR HE SAYS BUT MR CANELO WARNS THE RATE OF IMPROVEMENT WILL THEN SLACKEN WHICH COULD MEAN TROUBLE FOR THE STOCK MARKET WE COULD SEE THE DOW INDUSTRIALS CLIMB TO THE 3700 LEVEL AS WE HEAD TOWARD THE PEAK IN EARNINGS MOMENTUM MR CANELO SAYS BUT THE STOCK MARKET TENDS TO TOP AROUND THOSE PROFIT PEAKS SHARP GAINS IN EASTMAN KODAK AND SEARS ROEBUCK HELPED LIFT THE DOW JONES INDUSTRIAL AVERAGE THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 1146 POINTS TO 356043 STANDARD & POOR'S 500STOCK INDEX INCHED UP 055 TO 44868 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 037 TO 24891 VOLUME ON THE BIG BOARD FELL TO 2211 MILLION SHARES FROM 2496 MILLION GAINERS OUTNUMBERED DECLINERS 983 TO 876 FOR THE WEEK THE DOW INDUSTRIALS GAINED 059 S&P 500 ROSE 012 AND THE BIG BOARD COMPOSITE ADDED 017 WORLDWIDE STOCK PRICES INCHED HIGHER FRIDAY IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX ROSE 002 TO 10956 THE MARKET BARELY REACTED TO THE GOVERNMENT'S JULY EMPLOYMENT REPORT THE LABOR DEPARTMENT SAID NONFARM PAYROLLS ROSE 162000 LAST MONTH A LITTLE LESS THAN ANALYSTS HAD FORECAST BUT THE UNEMPLOYMENT RATE FELL TO 68 FROM 7 ANALYSTS HAD EXPECTED THE RATE TO BE UNCHANGED KODAK AND SEARS ACCOUNTED FOR THE DOW INDUSTRIALS' GAIN KODAK JUMPED 3 1/4 TO A 52WEEK HIGH OF 58 5/8 ON NEWS THAT ITS CHAIRMAN KAY R WHITEMORE WILL RESIGN AFTER THE ANNOUNCEMENT PRUDENTIAL SECURITIES RAISED ITS INVESTMENT RATING ON THE STOCK TO BUY FROM HOLD SEARS ROSE 1 7/8 TO 55 CONTINUING A CLIMB THAT BEGAN WEDNESDAY IN ANTICIPATION OF A STRONG JULY RETAIL SALE REPORT THAT WAS RELEASED THURSDAY SEARS WAS UP 4 3/4 FOR THE WEEK AUTO MAKERS SLUMPED AFTER SALOMON BROTHERS ISSUED A DOWNBEAT REPORT ON FORD SALOMON ANALYST JACK KIRNAN WARNED THAT AUTO MAKERS' INCREASING RELIANCE ON SHORTTERM LEASING AS AN INCENTIVE TO REPLACE REBATES IS RISKY AND CARRIES INCREASED NEARTERM COSTS FORD SLIPPED 1 TO 51 5/8 CHRYSLER FELL 1 TO 41 7/8 AND GENERAL MOTORS DECLINED 7/8 TO 47 3/4 MYLAN LABORATORIES JUMPED 2 1/2 TO 23 1/8 AFTER THE DRUG MAKER ISSUED A STATEMENT REASSURING INVESTORS THAT IT IS IN THE STRONGEST FINANCIAL POSITION EVER AND THAT THERE ARE ABSOLUTELY NO PROBLEMS AT THE COMPANY MYLAN SAID THE STATEMENT WAS PROMPTED BY ITS RECENT POOR STOCK PERFORMANCE THE SHARES HIT A 52WEEK LOW OF 19 5/8 FRIDAY BEFORE THE STATEMENT SPARKED BUYING MOBIL GAINED 1 1/2 TO 72 5/8 MORGAN STANLEY UPGRADED ITS RATING OF THE STOCK TO BUY FROM HOLD TRADING IN PRECIOUS METALS STOCKS REMAINED BRISK FOLLOWING THURSDAY'S STEEP DECLINE IN GOLD PRICES SEVERAL GOLD STOCKS RECOUPED SOME OF THEIR LOSSES HOMESTAKE MINING CLIMBED 1/4 TO 19 1/8 AND AMERICAN BARRICK RESOURCES EDGED UP 1/4 TO 24 1/2 EACH ON MORE THAN 2 MILLION SHARES TRADED GEICO JUMPED 2 5/8 TO 52 5/8 ON BETTERTHANEXPECTED EARNINGS THE PROPERTY AND CASUALTY INSURANCE UNDERWRITER POSTED SECONDQUARTER EARNINGS OF 118 A SHARE UP FROM 92 CENTS A YEAR AGO THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ROSE 081 OR 019 TO 43634 THERE WERE 247 DECLINERS AND 289 GAINERS PERCENTAGE DIFFERENCE BETWEEN ACTUAL EARNINGS FROM CONTINUING OPERATIONS WHERE APPLICABLE AND ANALYSTS' AVERAGE ESTIMATED EARNINGS AMONG THE DOW JONES INDUSTRY GROUPS FOR THE SECOND QUARTER OF 1993 A CHART ACCOMPANYING THE ABREAST OF THE MARKET COLUMN AUG 9 CONTAINED INACCURATE DATA THE CHART ILLUSTRATING THE PERCENTAGE OF INDUSTRY GROUPS FALLING ABOVE BELOW OR MATCHING ANALYSTS' EARNINGS EXPECTATIONS SHOULD HAVE SHOWN THAT 49 OF GROUPS CAME IN ABOVE EXPECTATIONS 38 WERE BELOW AND 13 AS EXPECTED THE INCORRECT CHART SHOWED 42 OF GROUPS ABOVE EXPECTATIONS 33 BELOW AND 11 AS EXPECTED 9308200024 930820 CLAYTON HOMES SAYS RETAILUNIT OFFICIAL EMBEZZLED SIZABLE SUM FROM CHAIRMAN BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL CLAYTON HOMES INC ALLEGED THAT THE FORMER CONTROLLER FOR ITS RETAIL GROUP EMBEZZLED A SIZABLE AMOUNT OF MONEY FROM JAMES L CLAYTON THE COMPANY'S FOUNDER AND CHAIRMAN WIDENING THE CLOUD OVER THE COMPANY MEANWHILE AN OFFICIAL WITH THE TENNESSEE REVENUE DEPARTMENT SAID THAT ITS PREVIOUSLY DISCLOSED INVESTIGATION INTO THE KNOXVILLE TENN HOMEBUILDER'S FAILURE TO MAKE CERTAIN TAX PAYMENTS IS A CRIMINAL MATTER AND A SECURITIES AND EXCHANGE COMMISSION FILING BY TWO OUTSIDE DIRECTORS WHO RECENTLY RESIGNED QUESTIONED THE ADEQUACY OF THE COMPANY'S INTERNAL AUDIT OF ITS SALES TAX AND OTHER RECORDS CLAYTON HOME'S STOCK TUMBLED 94 YESTERDAY ON THE NEWS AND IN THE WAKE OF THE DISCLOSURE TUESDAY THAT THE OUTSIDE DIRECTORS HAD RESIGNED AFTER A DISPUTE OVER HOW THE BOARD SHOULD HANDLE THE TENNESSEE STATE INVESTIGATION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CLAYTON HOMES STOCK FELL 2625 TO 2525 IN HEAVY TRADING SINCE MONDAY THE STOCK HAS LOST 165 OF ITS VALUE CLAYTON HOMES SAID THE CONTROLLER FOR THE RETAIL GROUP RESIGNED IN EARLY JUNE AFTER THE STATE TAX INVESTIGATION BEGAN THE COMPANY SAID THE CONTROLLER HAD BEEN RESPONSIBLE FOR FILING TAX RETURNS FOR 33 MOBILEHOME PARKS OWNED BY CLAYTON HOMES AS WELL AS FIVE PARKS MR CLAYTON HIMSELF OWNS AS A PERSONAL INVESTMENT DURING AN HOURLONG CONFERENCE CALL WITH ANALYSTS AND INVESTORS MR CLAYTON CLAIMED THAT THE RETAIL DIVISION CONTROLLER WHOM HE DIDN'T IDENTIFY BY NAME PILFERED FROM HIS PERSONAL HOLDINGS BUT ASSERTED THAT NOT ONE PENNY IS MISSING FROM THE COMPANY MR CLAYTON WOULDN'T SPECIFY HOW MUCH MONEY WAS TAKEN HE SAID THE TENNESSEE REVENUE DEPARTMENT ALSO WAS INVESTIGATING THE CONTROLLER AS WAS THE STATE ATTORNEY GENERAL'S OFFICE A COMPANY OFFICIAL LATER SAID MR CLAYTON WAS REFERRING TO WARREN SCHEDE THE OFFICIAL ALSO CONFIRMED MR SCHEDE WAS THE CONTROLLER WHO RESIGNED IN EARLY JUNE MR SCHEDE REACHED AT HIS HOME LAST NIGHT SAID HE HAD NO COMMENT ON THE ADVICE OF HIS LAWYER THE ATTORNEY GENERAL'S OFFICE SAID IT COULDN'T CONFIRM OR DENY AN INVESTIGATION AN OFFICIAL AT THE TENNESSEE DEPARTMENT OF REVENUE SAID HE WASN'T AWARE OF AN INVESTIGATION OF THE CONTROLLER DURING THE CONFERENCE CALL MR CLAYTON ALSO SAID THE CONTROLLER HADN'T HAD CLAYTON HOMES PAY REQUIRED SALES TAX ON FIVE COMPANYOWNED MOBILE HOME PARKS IN TENNESSEE AND HADN'T HAD MR CLAYTON PAY REQUIRED TAXES ON HIS FIVE PARKS BETWEEN 1988 AND 1991 AS A RESULT CLAYTON HOMES SAID TUESDAY THAT IT RECENTLY PAID THE STATE 163000 IN SALES TAXES FOR THE YEARS INVOLVED WHICH WERE ANALYZED IN A RECENT AUDIT BY ARTHUR ANDERSEN & CO MR CLAYTON PERSONALLY PAID 175000 IN BACK TAXES FOR THAT PERIOD THE COMPANY SAID THIS IS EMBARRASSING MR CLAYTON SAID DURING THE CONFERENCE CALL I SHOULD HAVE PAID MORE ATTENTION TO MY AFFAIRS MR CLAYTON SAID HE HAS SINCE HIRED A FULLTIME BOOKKEEPER TO HANDLE HIS PERSONAL INVESTMENTS MR CLAYTON REITERATED THAT THE TAX INVESTIGATION WOULDN'T AFFECT EARNINGS HOWEVER THE TWO OUTSIDE DIRECTORS SAID IN THEIR RESIGNATION LETTERS THAT THE COMPANY'S INTERNAL AUDIT OF ITS SALES TAX AND OTHER RECORDS IS UNLIKELY TO PROVE ADEQUATE ACCORDING TO A RECENT SEC FILING THE DIRECTORS WALLACE RASMUSSEN RETIRED CHIEF EXECUTIVE OFFICER OF BEATRICE FOODS COS AND WILLIAM LOMICKA PRESIDENT OF MAYFAIR CAPITAL COULDN'T BE REACHED FOR COMMENT THE COMPANY SAID IT KNOWS OF NO FURTHER IMPROPRIETIES MR RASMUSSEN AND MR LOMICKA WALKED OUT OF THE ROOM MAD AND THREW A HAND GRENADE INTO THE ROOM AS THEY WALKED OUT SAID MR CLAYTON THEY HAVEN'T GIVEN INFORMATION ABOUT ANYTHING THAT COULD BE OF MATERIAL INTEREST TO THE COMPANY AT ALL RICHARD RAY EXECUTIVE VICE PRESIDENT OF FINANCE SAID THE COMPANY WASN'T AWARE OF THE CRIMINAL NATURE OF THE STATE'S INVESTIGATION MR RAY SAID THE COMPANY STRONGLY BELIEVES IT HASN'T VIOLATED ANY CRIMINAL STATUTES FOLLOWING THE CONFERENCE CALL CLAYTON'S STOCK REBOUNDED SOME AS INVESTORS AND SOME ANALYSTS SEEMED REASSURED BY THE COMPANY'S STATEMENTS THE COMPANY DID EVERYTHING THEY COULD HAVE AS FAR AS DAMAGE CONTROL GOES SAID MARKS HINTON AN ANALYST WITH EQUITABLE SECURITIES IN NASHVILLE TENN THERE'S STILL SOME CONCERN UNTIL THE PEOPLE MAKING THESE CHARGES COME FORTH AND SPECIFY WHAT THE CHARGES ARE HE SAID HERE ARE THE DIRECTORS OF CLAYTON HOMES INC JAMES L CLAYTON CHAIRMAN AND CHIEF EXECUTIVE OFFICER B JOE CLAYTON JAMES CLAYTON'S BROTHER CHIEF EXECUTIVE OF CLOSELY HELD CLAYTON MOTORS INC A KNOXVILLE TENN HOLDING COMPANY FOR AUTO DEALERSHIPS AND REAL ESTATE E TYLER KELLY EXECUTIVE VICE PRESIDENT MANUFACTURING DIVISION CLAYTON HOMES RICHARD B RAY EXECUTIVE VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER CLAYTON HOMES JOSEPH H STEGMAYER PRESIDENT AND CHIEF OPERATING OFFICER CLAYTON HOMES DAN W EVINS CHAIRMAN CHIEF EXECUTIVE AND PRESIDENT OF CRACKER BARREL OLD COUNTRY STORE INC A RESTAURANT CHAIN BASED IN LEBANON TENN JAMES D COCKMAN CHAIRMAN OF OCEAN FRESH FOODS INTERNATIONAL INC A CLOSELY HELD SEAFOOD DISTRIBUTOR IN GREENVILLE SC C WARREN NEEL DEAN OF THE UNIVERSITY OF TENNESSEE COLLEGE OF BUSINESS ADMINISTRATION MESSRS COCKMAN AND NEEL WERE APPOINTED THIS WEEK TO SUCCEED TWO DIRECTORS WHO TURNED IN THEIR LETTERS OF RESIGNATION LAST FRIDAY WALLACE N RASMUSSEN RETIRED CHIEF EXECUTIVE OF BEATRICE FOODS COS AND WILLIAM H LOMICKA PRESIDENT OF MAYFAIR CAPITAL A LOUISVILLE KY INVESTMENT COMPANY 9308200023 930820 ENTERPRISE HOSPITAL NETWORKS ARE TURNING TO SMALL SUPPLIERS MANY OPPORTUNITIES DEVELOP AS COSTCUTTING EFFORTS INTENSIFY BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL NETWORKS OF INDEPENDENT HOSPITALS ARE INCREASINGLY TURNING TO SMALL SUPPLIERS TO HELP THEM CUT COSTS RESULT UNPRECEDENTED OPPORTUNITIES FOR SMALL COMPANIES TO SELL TO WHOLE GROUPS OF HOSPITALS AS SINGLE CUSTOMERS ABOUT A DOZEN MAJOR US HOSPITAL ALLIANCES WHICH REPRESENT NEARLY ONE MILLION HOSPITAL BEDS FOR YEARS HAVE POOLED THEIR PURCHASING POWER TO GET VOLUME DISCOUNTS FROM BIG NATIONAL SUPPLIERS NOW AS PRESSURE TO CUT COSTS ESCALATES SOME ARE FOCUSING SUCH BUYING ACTIVITY ON SMALL COMPANIES LAST YEAR FOR INSTANCE SUNHEALTH ALLIANCE IN CHARLOTTE NC A UNIT OF SUNHEALTH CORP DIVIDED ITS 275 HOSPITALS IN 15 STATES INTO 17 REGIONAL NETWORKS TO APPLY THE ECONOMIES OF GROUP PURCHASING LOCALLY SAYS PAT POSTON A SUNHEALTH SENIOR VICE PRESIDENT AS A RESULT WE'RE IN THE PROCESS OF ORGANIZING MARKETS FOR COMPANIES THAT DIDN'T HAVE ACCESS TO THEM BEFORE THE OFFICIAL ADDS MANY SMALL COMPANIES SUCH AS ADVANCED ORTHOPEDIC TECHNOLOGIES INC ARE GAINING BIG CONTRACTS THE WEST HEMPSTEAD NY MAKER OF ARTIFICIAL LIMBS AND BRACES WHICH HAS 10 MILLION IN ANNUAL REVENUE SIGNED A CONTRACT EARLIER THIS YEAR WITH PREMIER HOSPITALS ALLIANCE OF NEW YORK INC A FIVEYEAROLD REGIONAL NETWORK THAT BELONGS TO THE 51MEMBER PREMIER HOSPITALS ALLIANCE INC IN WESTCHESTER ILL ADVANCED ORTHOPEDIC ALREADY WAS PROVIDING PATIENTCARE SERVICES TO SOME OF THE REGIONAL COOPERATIVE'S SEVEN MEMBERS SUCH AS MOUNT SINAI MEDICAL CENTER SAYS ANDREW MEYERS ADVANCED ORTHOPEDIC'S PRESIDENT BUT NOW THE COMPANY HAS A SHOT AT ADDING AN ESTIMATED 7 MILLION IN ANNUAL REVENUE PREMIER SAYS THIS INCLUDES BOTH THE MONEY THE COOPERATIVE SPENDS ON SUCH DEVICES AND THE MONEY ITS PATIENTS SPEND ON OUTPATIENT CARE WHILE PREMIER MEMBERS AREN'T OBLIGATED TO PURCHASE ADVANCED ORTHOPEDIC'S DEVICES THOSE THAT DO GET THEM AT A DISCOUNT HOSPITAL ADMINISTRATORS ALSO HOPE THAT CONSOLIDATING THEIR PURCHASES OF A GIVEN PRODUCT WITH ONE SUPPLIER WILL IMPROVE EFFICIENCY BECAUSE THE HOSPITALS AREN'T REQUIRED TO BUY HIS PRODUCTS MR MEYERS ADDS PREMIER HASN'T GIVEN US ANYTHING ON A SILVER PLATTER BUT HE ADDS THEY'VE GIVEN US AN OPPORTUNITY IF WE'RE SUCCESSFUL IN NEW YORK WE'VE GOT THE POTENTIAL OF DOING THIS WITH OTHER HOSPITAL GROUPS THROUGHOUT THE COUNTRY HOSPITALS ALSO CAN GAIN FROM DEALING COLLECTIVELY WITH SMALL COMPANIES ADMINISTRATORS SAY DOING SO LOWERS THE PRICES THEY PAY FOR SUPPLIES NOT COVERED BY THEIR ALLIANCE'S NATIONAL PURCHASING PROGRAMS THESE PROGRAMS TEND TO CONCENTRATE ON PRODUCTS BOUGHT IN VERY HIGH VOLUME OFTEN FROM BIG COMPANIES HOSPITAL ADMINISTRATORS SAY SMALL SUPPLIERS ALSO TEND TO BE MORE FLEXIBLE AND RESPONSIVE THAN LARGER CONCERNS THUS ENABLING REGIONAL HOSPITAL ALLIANCES TO TAILOR GOODS AND SERVICES TO THEIR SPECIAL NEEDS GROUPPURCHASING ORGANIZATIONS ARE GOING BACK TO THEIR GEOGRAPHICAL ROOTS SAYS LEE PERLMAN AN EXECUTIVE VICE PRESIDENT OF GREATER NEW YORK HOSPITAL ASSOCIATION VENTURES INC A UNIT OF A 155MEMBER HOSPITAL TRADE GROUP THE UNIT'S JOINT BUYING HAS GROWN 20 TO 30 ANNUALLY FOR THE PAST FIVE YEARS TO MORE THAN 500 MILLION THEY'RE REALIZING THEIR STRENGTH LIES IN LOCAL MARKETS BOB CONATY AN EXECUTIVE VICE PRESIDENT AT MONTEFIORE MEDICAL CENTER NEW YORK SAYS THE NETWORK IS ONE OF THE PIECES OF THE PUZZLE FOR CONTROLLING RISING EXPENSES SUPPLIER COSTS IS ONE OF THE AREAS WE ARE FOCUSING ON MORE AND MORE ADDS THE OFFICIAL WHOSE 1250BED CENTER BELONGS TO PREMIER'S REGIONAL ALLIANCE PREMIER'S NEW YORK MEMBERS EXPECT THIS YEAR TO SAVE 26 MILLION ON 156 MILLION OF GROUPBUYING ACTIVITY SAYS EVAN POLANSKY THE REGIONAL COOPERATIVE'S PRESIDENT IN 1992 MEMBERS SAVED 16 MILLION ON PURCHASES OF 137 MILLION HE ADDS MR POLANSKY SAYS PREMIER'S NEW YORK NETWORK IS EXPECTED THIS YEAR TO RETURN 640 IN SAVINGS FOR EVERY 1 OF MEMBER FEES UP FROM 420 IN SAVINGS PER FEEDOLLAR IN 1992 MOREOVER MR POLANSKY SAYS SMALL SUPPLIERS ARE BETTER EQUIPPED THAN BIG ONES TO MEET HOSPITALS' INDIVIDUAL NEEDS WHILE LARGE SUPPLIERS DON'T NEED TO BE FLEXIBLE BECAUSE THEY'RE ALREADY ENTRENCHED SMALL SUPPLIERS ARE WILLING TO DEDICATE A SIZABLE AMOUNT OF THEIR MARKETING AND MANAGEMENT RESOURCES TO ACCOMMODATING THE ALLIANCE AS A CUSTOMER FOR INSTANCE IN ORDER TO GET PREMIER'S BUSINESS TWO YEARS AGO SAFESITE RECORDS MANAGEMENT CORP BILLERICA MASS TRIPLED TO 45000 SQUARE FEET THE RECORDSSTORAGE SPACE IT LEASES IN THE NEW YORK METROPOLITAN AREA SAYS JAMES WAYMAN PRESIDENT IT ALSO ACCOMMODATED THE ALLIANCE IN SMALLER WAYS BESIDES KEEPING PREMIER'S RECORDS THE COMPANY ALSO STORES SOME OF THE GROUP'S ARTIFICIAL CHRISTMAS TREES MR WAYMAN HAS GOOD REASON TO ACCOMMODATE THOSE TREES THE PREMIER CONTRACT ONE OF SAFESITE'S LARGEST BRINGS IN 600000 A YEAR MORE THAN 5 OF THE COMPANY'S 10 MILLION ANNUAL REVENUE AND WITH 10 RECORDSSTORAGE CENTERS NATIONWIDE MR WAYMAN SAYS HE HOPES EVENTUALLY TO DO BUSINESS WITH PREMIER HOSPITALS OUTSIDE THE NEW YORK AREA LIKE ITS CONTRACT WITH PREMIER'S REGIONAL NETWORK A CONTRACT WITH THE NATIONAL ALLIANCE WOULDN'T OBLIGATE MEMBER HOSPITALS TO USE SAFESITE'S RECORDSSTORAGE SERVICE WE'RE STILL GOING TO HAVE TO SELL THE SERVICE TO INDIVIDUAL MEMBERS MR WAYMAN SAYS BUT WITHOUT THE ACCESS THAT PREMIER'S NEW YORK NETWORK PROVIDED GETTING EVEN A CHANCE TO SELL THE SERVICE TO A NATIONAL ALLIANCE OF HOSPITALS WOULD HAVE TAKEN A WHOLE LOT LONGER HE ADDS 9308200022 930820 AUTOS GOODBYE TO HAGGLING SAVVY CONSUMERS ARE BUYING THEIR CARS LIKE REFRIGERATORS BY DOUGLAS LAVIN AND KRYSTAL MILLER STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT AMERICA'S CARBUYING RITUAL IN WHICH HORSETRADING DEALERS BATTLE IMPULSEDRIVEN CUSTOMERS IS CRUMBLING AS MILLIONS OF CONSUMERS TROOP TO SHOWROOMS TO REPLACE AGING CLUNKERS NURSED THROUGH THE LAST RECESSION DEALERS AND MANUFACTURERS ARE ENCOUNTERING A BIG SHIFT IN ATTITUDES NO LONGER DO MANY CONSUMERS VIEW PURCHASING A CAR AS SOMETHING SPECIAL MORE AND MORE IT'S LIKE BUYING AN APPLIANCE SAYS THOMAS G ELLIOTT EXECUTIVE VICE PRESIDENT OF HONDA MOTOR CO'S US MARKETING ARM IT'S A RATHER HEARTLESS SHOPPER WHO'S OUT LOOKING FOR THE BEST DEAL AND FOR 100 WILL SWITCH DEALERS AS THE QUALITY GAP BETWEEN BIG THREE MODELS AND THEIR JAPANESE COMPETITORS NARROWS MORE CONSUMERS ARE FOCUSING ON HOW TO MAKE BUYING A CAR SIMPLER AND LESS FINANCIALLY RISKY MANUFACTURERS ARE SCRAMBLING TO STAY AHEAD AND MAKE A PROFIT IN THE PROCESS AND THAT MEANS BIG CHANGES FOR CONSUMERS CAR MAKERS AND DEALERS RAISED IN THE DAYS WHEN MANY PEOPLE CUSTOMORDERED CARS AND ALMOST EVERYONE EXPECTED TO HAGGLE BEFORE DRIVING OFF WITH THE NEW DREAM MACHINE AND A FRESH PAYMENT BOOK CONSIDER HOW SARAH RAYMOND AND HER HUSBAND STEPHEN MARSHALL AVOIDED THAT TRADITIONAL SELLING PROCESS THIS SUMMER WHEN THEY DECIDED THE IMPENDING ARRIVAL OF TWINS MEANT THEY NEEDED A NEW CAR MS RAYMOND A 41YEAROLD PROFESSOR OF PHOTOGRAPHY AT NORTHERN VIRGINIA COMMUNITY COLLEGE RECALLED HER LAST CAR SHOPPING EXPERIENCE AS VERY PAINFUL MS RAYMOND HAD TRAMPED FROM DEALERSHIP TO DEALERSHIP WITH A MALE FRIEND IN TOW WHO LIKED TO HAGGLE BUT STILL SHE SAYS I NEVER WAS SURE THAT I GOT THE BEST PRICE THIS TIME MS RAYMOND AND MR MARSHALL A 39YEAROLD GEOLOGIST WITH THE US FOREST SERVICE TOOK A DIFFERENT APPROACH THE WASHINGTON COUPLE SHOPPED AROUND BUT ONLY TO SETTLE ON THE KIND OF CAR THEY WANTED THEN THEY PAID 120 TO A SERVICE CALLED CAR BARGAINS THAT COLLECTED FIVE BIDS FROM FORD DEALERS WILLING TO SELL A TAURUS GL AT A MARGINAL AMOUNT ABOVE THE FACTORY INVOICE PRICE MS RAYMOND FOLLOWED UP WITH EACH DEALER BY PHONE WITHIN A DAY AND WITHOUT TEDIOUS NEGOTIATIONS THE COUPLE HAD THE CAR THEY WANTED A TAURUS SEDAN WITH ANTILOCK BRAKES AIRBAG AND AIR CONDITIONING FOR 14500 ABOUT 3000 BELOW THE WINDOW STICKER PRICE IT WAS VERY VERY SMOOTH SAYS MR MARSHALL THE NONONSENSE ATTITUDE AMONG CONSUMERS IS DRIVING A BROAD SURGE OF NEW APPROACHES TO CAR PRICING AND SELLING GENERAL MOTORS CORP HAS MADE A BIG SPLASH WITH ITS MOVE TO NARROW CHOICES IN ITS MANY MODEL LINES AND SLAP VALUE PRICES ON CERTAIN WELLEQUIPPED MODELS TO CONVINCE CONSUMERS THAT THEY'RE GETTING A BARGAIN FORD MOTOR CO IS PUSHING CUTRATE SHORTTERM LEASES TO EASE CONSUMER FEARS ABOUT RISING STICKER PRICES AND COMPLEX SHOWROOM NEGOTIATING CONSUMERS MEANWHILE ARE INCREASINGLY DOING WHAT MS RAYMOND AND MR MARSHALL DID PATRONIZING DIALADEAL SHOPPING SERVICES LIKE CAR BARGAINS OR SERVICES PROVIDED BY CREDIT UNIONS AND RETAILERS LIKE WALMART THAT SET CUSTOMERS UP WITH NEW CARS AT DISCOUNT PRICES PRENEGOTIATED WITH DEALERS ALL TOGETHER SOME 40 OF NEW CARS ARE NOW PURCHASED SOME WAY OTHER THAN THE TRADITIONAL SHOPHAGGLEANDBUYONCREDIT APPROACH SAYS DORIS EHLERS AN ANALYST WITH JD POWER ASSOCIATES AN AGOURA HILLS CALIF MARKET RESEARCH FIRM MS EHLERS SAYS CONSUMERS WHO USE BROKERS AND PRICE CLUBS BELIEVE THEY SAVE AS MUCH AS 1800 OVER TRADITIONAL BUYING METHODS JUST LIKE YOU CAN BUY A COMPUTER A LOT OF DIFFERENT WAYS PEOPLE WANT TO BUY A CAR A LOT OF DIFFERENT WAYS MS EHLERS SAYS ECONOMIST DAVID LITTMANN OF COMERICA BANK IN DETROIT SAYS CONSUMERS ARE WARIER THAN EVER ABOUT OVERSPENDING FOR A NEW CAR BECAUSE VEHICLE PRICES ARE RISING FASTER THAN PERSONAL INCOMES THIS REFLECTS A NEW BUYING SENTIMENT IN THE PUBLIC AIMED AT A NEW PURCHASINGPOWER REALITY HE SAYS AND THAT LEAVES AUTO MAKERS WITH A TRICKY CHALLENGE AS THEY TRY TO INCREASE PROFITS WHILE APPEARING TO OFFER CONSUMERS A BETTER DEAL JAPANESE CAR MAKERS HAVE LITTLE ROOM TO MANEUVER WITH THE YEN RECENTLY AT RECORD HIGH LEVELS AGAINST THE DOLLAR THEY'RE RAISING PRICES 2000 OR MORE ABOVE RIVAL DOMESTIC MODELS ANALYSTS SAY MOST JAPANESE AUTO MAKERS HAVEN'T ANNOUNCED 1994 PRICES BUT TOYOTA MOTOR CORP HAS SAID IT WILL INCREASE PRICES FAIRLY SUBSTANTIALLY NISSAN MOTOR CORP HAS SAID ITS SENTRA COMPACT SEDAN WILL CARRY A BASE STICKER PRICE OF 9780 UP 122 FROM THE 1993 PRICE DETROIT IS RAISING PRICES TOO BY REDUCING CASH REBATES RAISING STICKER PRICES ON NEW MODELS AND CUTTING DEALER MARGINS BUT THE BIG THREE ARE TRYING TO REASSURE CONSUMERS THAT THEY CAN STILL GET A GOOD DEAL GM'S OLDSMOBILE DIVISION WILL MAKE MORE THAN HALF THE CARS IT SELLS IN THE 1994 MODEL YEAR VALUE PACKAGE MODELS INCLUDING A 1994 CUTLASS SUPREME THAT WILL LIST FOR 16995 AND HAVE AIRBAGS AND ANTILOCK BRAKES STANDARD HOW WILL OLDSMOBILE BOOST PROFITS BY ELIMINATING LOWPRICED STRIPPED VERSIONS OF THE CAR REDUCING COMPLEXITY IN THE ASSEMBLY PLANT AND CUTTING DEALER PROFIT MARGINS FORD MEANWHILE IS COUNTERING WITH SHORTTERM LEASE DEALS SUCH AS ONE THAT OFFERS TWOYEAR USE OF A 19825 TAURUS FOR JUST 279 A MONTH THAT'S LESS THAN THE 378 MONTHLY PAYMENT IT WOULD TAKE TO BUY THE CAR OVER FOUR YEARS THE CATCH LEASE CUSTOMERS HAVE TO TAKE THE CAR EQUIPPED THE WAY FORD WANTS IT AND THEY MUST COME BACK FOR A NEW VEHICLE IN JUST TWO YEARS SOME INDUSTRY OFFICIALS AND DEALERS REMAIN SKEPTICAL OF THE NEW FASHIONS IN PRICING AND SALES CHRYSLER CORP HAS LARGELY AVOIDED VALUE PRICING PROMOTIONS PARTLY BECAUSE ITS EXECUTIVES BELIEVE THE COMPANY'S HOT NEW MODELS CAN SELL WITHOUT SUCH STRATEGIES BUT CHRYSLER IS ABOUT TO START A MAJOR PUSH TO MARKET DISCOUNT LEASES IN ORDER TO CASH IN ON THAT GROWING MARKET GM'S CHEVROLET DIVISION IS OFFERING RELATIVELY FEW VALUE PRICING DEALS IN PART BECAUSE MANY CHEVY DEALERS DON'T LIKE THE IDEA OF GIVING AWAY SOME OF THEIR PROFIT MARGINS I DON'T THINK ONEPRICE IS NEARLY AS IMPORTANT AS REDUCING THE CONFRONTATION ON EITHER SIDE SAYS JC JIM PERKINS THE GM VICE PRESIDENT WHO RUNS THE BIG CHEVROLET DIVISION BUT OTHERS LIKE NAPLES FLA DEALER EARL HILGER SAY THE DEMISE OF THE OLD WAYS IS INEVITABLE MR HILGER SAYS 47 OF THE OLDSMOBILES HE MOVED OUT IN JULY WERE LEASED ON SHORTTERM CONTRACTS COMPARED WITH 12 THE YEAR BEFORE THE CAR BUSINESS IS CHANGING MR HILGER SAYS AND SOME DEALERS DON'T KNOW IT JACQUELINE MITCHELL CONTRIBUTED TO THIS ARTICLE 9308200021 930820 LETTERS TO THE EDITOR THE GREAT PAPER THEFT IN READING YOUR JULY 26 EDITORIAL PENN THE REPORT AND ACCOMPANYING EXCERPT OF THE UNIVERSITY INVESTIGATIVE REPORT REGARDING THE GREAT PAPER THEFT DOUBLETHINK AT UNIVERSITY OF PENNSYLVANIA ONE CAN'T HELP BUT WONDER WHAT THE REACTION WOULD HAVE BEEN HAD A CONSERVATIVE GROUP ENGAGED IN SIMILAR CENSORSHIP ATTEMPTS IF CONSERVATIVES HAD STOLEN THE ENTIRE PRESS RUN OF A GAY/LESBIAN PUBLICATION THE CRIES OF HOMOPHOBIA WOULD BE DEAFENING HAD A LEFTIST PAPER BEEN STOLEN THE THIEVES WOULD HAVE BEEN BRANDED FASCIST NEONAZI THUGS AND IT WOULD BE THE THIEVES IN THOSE CIRCUMSTANCES RATHER THAN THOSE WHO TRIED TO STOP THE THEFTS WHO WOULD BE SUBJECT TO THOUGHTCONTROL SENSITIVITY CLASSES AS FOR THE BLACKS WHO STOLE THE DAILY PENNSYLVANIAN ENGAGED IN PHYSICAL VIOLENCE AGAINST THOSE WHO TRIED TO STOP THEM AND CURSED ANYONE WHO CRITICIZED THEM THEIR SENSITIVITY IS OBVIOUS FOR ALL TO SEE AS HAS BECOME PAINFULLY OBVIOUS IT IS THE LIBERALS WHO STIFLE DISSENT WHILE HYPOCRITICALLY PAYING LIP SERVICE TO FREEDOM OF EXPRESSION AND DIVERSITY CONSERVATIVES TEND TO BE MORE OPEN TO DIVERSITY OF OPINION AND LESS GIVEN TO RAMPANT LAWLESSNESS AND CENSORSHIP PENN'S HANDLING OF THE DAILY PENNSYLVANIAN THEFT MAKES ME WONDER HOW FAR REMOVED IT IS FROM THE REAL WORLD PUNISHING THE SECURITY OFFICERS FOR DOING THEIR JOBS IF DONALD FITZGERALD HAD FOUND STOLEN ARTWORK IN THE ACTIVIST'S BAGS INSTEAD OF THE OFFENDING NEWSPAPERS HE WOULD BE LAUDED AS A HERO NOT REPRIMANDED FOR OVERSTEPPING HIS JOB FUNCTIONS BUT CAN WE TRULY FEEL SORRY FOR MR FITZGERALD ANY RIGHTTHINKING SECURITY OFFICER WOULD HAVE CONSULTED A SENSITIVITY MANUAL AND ALERTED OPEN EXPRESSION MONITORS BEFORE TRYING TO STOP CRIMINAL ACTIVITY DOUBTLESS THE MISGUIDED VANGUARD OF POLITICAL CORRECTITUDE WILL HOLD THAT PROTESTERS IN THESE SITUATIONS SHOULD NOT BE PUNISHED FOR THEFT THIS IS TRUE THEY SHOULD BE PUNISHED FOR DENYING ANOTHER GROUP'S FREE SPEECH WHAT ON EARTH IS GOING ON HERE WHERE ARE THE OPEN EXPRESSION MONITORS WHEN THE DAILY PENNSYLVANIAN STAFF IS DENIED THE RIGHT TO FREE SPEECH AND WHAT ABOUT THE RIGHTS OF THOSE WHO WANTED TO READ IT IT SOUNDS TO ME LIKE THE ACTIVISTS SHOULD BE TAKING COURSES IN DIVERSITY AND CIVILITY ONCE AGAIN YOUR EDITORIAL PAGE HAS MISLED YOUR READERS ABOUT THE UNIVERSITY OF PENNSYLVANIA THIS TIME REGARDING ITS HANDLING OF ISSUES RAISED AFTER A GROUP OF STUDENTS SEIZED COPIES OF THE STUDENT NEWSPAPER APRIL 15 YOUR READERS DESERVE TO KNOW THE FACTS THE SPECIAL INQUIRY BOARD DID NOT ABSOLVE THE STUDENTS OF ANY WRONGDOING AS YOU INCORRECTLY STATED THE STUDENTS INVOLVED IN SEIZING THE PAPERS WILL FACE DISCIPLINARY PROCEDURES IN THE FALL AS UNIVERSITY LEADERS HAVE CONSISTENTLY SAID CONTRARY TO YOUR EDITORIAL'S IMPLICATION THE BOARD'S PURPOSE WAS TO DETERMINE WHETHER POLICE AND SECURITY EMPLOYEES VIOLATED THEIR OWN PROCEDURES WHEN THEY APPREHENDED THE STUDENTS 9308200020 930820 GOODYEAR REDEEMS DEBENTURES AKRON OHIO GOODYEAR TIRE & RUBBER CO SAID IT REDEEMED 150 MILLION IN EURO CONVERTIBLE DEBENTURES WITH AN INTEREST RATE OF 6 7/8 THE TIRE MAKER SAID THE REDEMPTION WILL SAVE MORE THAN 9 MILLION A YEAR IN INTEREST COSTS 9308200019 930820 WHAT'S NEWS BUSINESS AND FINANCE THE DOLLAR SOARED 42 AGAINST THE YEN AFTER THE US ABRUPTLY REVERSED ITS STANCE TOWARD THE CURRENCIES THE NEW YORK FED REPEATEDLY SOLD YEN AND BOUGHT DOLLARS CATCHING CURRENCY TRADERS OFF GUARD US OFFICIALS SAID THE MOVE WAS PARTLY IN REACTION TO SIGNS THAT JAPAN IS MOVING TO STIMULATE ITS ECONOMY BY CUTTING INTEREST RATES THEY SAID THEY DON'T INTEND TO PLACE A CEILING ON THE YEN MATTEL AGREED TO ACQUIRE FISHERPRICE IN A 11 BILLION STOCK SWAP THE PLAN WOULD CREATE A BRANDNAME TOY POWERHOUSE THAT WILL RIVAL HASBRO AS THE TOY INDUSTRY'S BIGGEST PLAYER US EXPORTS FELL 33 IN JUNE HELPING TO WIDEN THE TRADE DEFICIT TO ITS BIGGEST LEVEL IN MORE THAN FIVE YEARS IMPORTS CLIMBED 51 TO A RECORD LONGTERM BOND PRICES RALLIED SENDING INTEREST RATES PLUNGING IN RESPONSE TO THE TRADEDEFICIT REPORT CLINTON HELPED NEGOTIATE A 6 BILLION ORDER FOR USBUILT COMMERCIAL JETS FROM SAUDI ARABIA'S STATERUN AIRLINE A WASHINGTON SENATOR SAID THE ACCORD WOULD BE A SIGNIFICANT BOOST FOR BOEING AND MCDONNELL DOUGLAS PRUDENTIAL INSURANCE IS PREPARING TO SELL UP TO 700 MILLION OF FORECLOSED COMMERCIAL REAL ESTATE A SIGN THAT INSURANCE COMPANIES BELIEVE THE MARKET IS IMPROVING FOR DISTRESSED PROPERTY TEXAS INSTRUMENTS SAID IT WILL BUILD A SEMICONDUCTOR DEVELOPMENT AND MANUFACTURING FACILITY FOR 750 MILLION TO 1 BILLION IN RESPONSE TO INCREASED MARKET DEMAND AND A NEED TO STAY AHEAD OF SHORTENING PRODUCT CYCLES DART GROUP'S HERBERT HAFT TRANSFERRED MAJORITY OWNERSHIP OF THE HAFT RETAILING EMPIRE TO HIS YOUNGER SON THE ONLY FAMILY ALLY HE HAS LEFT THE MOVE APPEARS AIMED AT INSULATING HERBERT HAFT'S STAKE IN A DIVORCE RESIDENTIAL FIXEDRATE MORTGAGES FELL THIS WEEK TO A 23YEAR LOW HELPING TO BOLSTER A STILLLACKLUSTER HOUSING MARKET AND A REFINANCING BOOM CARL ICAHN PLANS TO EXTRACT MORE THAN 1 BILLION IN CASH SECURITIES AND OTHER BENEFITS THROUGH A REFINANCING OF HIS ACF INDUSTRIES A RAILCAR CONCERN AN AIRLINE COMMISSION'S PROPOSAL TO PARTIALLY PRIVATIZE THE AIRTRAFFICCONTROL SYSTEM AND OTHER SUGGESTIONS WERE MET BY WHITE HOUSE SKEPTICISM CLAYTON HOMES ALLEGED THAT THE FORMER CONTROLLER FOR ITS RETAIL GROUP EMBEZZLED A SIZABLE AMOUNT OF MONEY FROM THE FOUNDER AND CHAIRMAN FOX AGREED TO PAY MORE THAN 55 MILLION FOR A PHILADELPHIA UHFTV STATION AMID A SPURT IN TVSTATION SALES MAXTOR AGREED TO SELL 40 OF THE DISKDRIVE MAKER TO SOUTH KOREA'S HYUNDAI ELECTRONICS FOR 150 MILLION SHORT INTEREST ON THE BIG BOARD CLIMBED 55 TO A RECORD AT MIDAUGUST CHRYSLER AGAIN LED THE LIST OF FIRMS WITH THE HIGHEST SHORT INTEREST GERMANY'S MONEY SUPPLY EXPANDED AT A FASTER RATE IN JULY BUT THE CENTRAL BANK IS EXPECTED TO PUT ASIDE NEW INFLATION WORRIES AND MOVE SOON FOR ANOTHER INTERESTRATE CUT THE MONEY SUPPLY ACCELERATION WAS DUE IN PART TO FOREIGNEXCHANGE INTERVENTION ON BEHALF OF OTHER CURRENCIES BONDS LEHMAN BROTHERS TREASURY INDEX 549553 UP 1916 COMMODITIES OIL 1765 A BARREL OFF ONE CENT DOW JONES FUTURES INDEX 12384 OFF 154 SPOT INDEX 12395 UP 049 DOLLAR 10590 YEN UP 430 16875 MARKS UP 00075 9308200018 930820 WHAT'S THE LOWDOWN ON HIGHER 1994 CAR PRICES BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL CONSUMERS WHO HAVEN'T BOUGHT A NEW CAR SINCE RONALD REAGAN WAS PRESIDENT AND THERE ARE MILLIONS OF THEM ARE STRUGGLING TO FIGURE OUT WHAT'S GOING ON WITH CAR PRICES CLEARLY PRICES ARE A LOT HIGHER THAN IN THE 1980S BUT EVEN AFTER POTENTIAL BUYERS ADJUST TO STICKER SHOCK THEY STILL HAVE TO SORT OUT CAR MAKERS' CONFLICTING STATEMENTS ABOUT PRICING STRATEGY FOR THE 1994 MODEL YEAR WHICH OFFICIALLY STARTS OCT 1 HERE ARE QUESTIONS AND ANSWERS ABOUT THE INDUSTRY'S PRICING PRONOUNCEMENTS Q HOW MUCH ARE BIG THREE CAR PRICES REALLY GOING UP THIS YEAR A THAT DEPENDS ON WHAT YOU BUY GENERAL MOTORS CORP SAYS IT WILL OFFER A BROAD ARRAY OF VALUE PRICED MODELS THAT WILL BE PRICED ABOUT THE SAME AS OR EVEN BELOW SIMILARLY EQUIPPED 1993 MODELS OVERALL GM AND CHRYSLER CORP HAVE SAID THEIR PRICE INCREASES WILL AVERAGE ABOUT 2 BUT HIGHER PRICES DON'T HAVE TO SHOW UP ON THE STICKER GM IS CUTTING PROFIT MARGINS ALLOTTED TO DEALERS ON MANY MODELS THUS BOOSTING ITS REVENUE PER CAR AND REDUCING A DEALER'S NEGOTIATING ROOM THE BIG THREE ARE ALL SCALING BACK CASH REBATES EFFECTIVELY INSTITUTING OFFSTICKER PRICE INCREASES Q WHAT'S THE BOTTOM LINE A ANALYSTS SAY STARTING PRICES FOR BIG THREE MODELS WILL BE UP 5 TO 7 Q SO WHERE'S THE VALUE IN VALUE PRICING A IF YOUR STYLE IS TO ORDER A STRIPPED DOWN BASE MODEL ADDING ONE OR TWO OPTIONS YOU'LL PROBABLY PAY MORE AND HAVE A HARD TIME FINDING WHAT YOU WANT THE BIG THREE AND THE JAPANESE ALL WANT TO CUT COSTS BY REDUCING THE NUMBER OF MODELS ON THE MARKET UNADORNED LOWPROFIT STRIPPER MODELS ARE THE FIRST TO GO THE VALUE IS CHIEFLY OFFERED TO CUSTOMERS WHO WANT CARS LOADED WITH COMFORT FEATURES Q SO DOES VALUE PRICING REALLY MEAN NO MORE HAGGLING A ONLY FOR MODELS THAT CONSUMERS AGREE ARE FAIRLY PRICED IF A VALUE PRICED CAR DOESN'T SELL DEALERS WILL BE TEMPTED TO BACK DOWN AND BARGAIN AWAY MORE OF THEIR MARGIN ALSO SETTING TRADEIN VALUES WILL STILL INVOLVE DICKERING Q WHY ARE JAPANESE PRICES GOING UP SO SHARPLY A BECAUSE WHEN TOYOTA OR NISSAN COLLECTS 10000 FROM THE SALE OF A CAR IN THE US IT PRODUCES ONLY ABOUT 1059000 YEN OF REVENUE BACK IN JAPAN BASED ON YESTERDAY'S EXCHANGE RATE OF 1059 YEN TO THE DOLLAR A YEAR AGO THE SAME SALE WOULD HAVE PRODUCED ABOUT 12 MILLION YEN EVEN AT 120 YEN TO THE DOLLAR MANY JAPANESE COMPANIES WERE STRUGGLING TO SHOW A PROFIT ON US SALES WHILE SOME JAPANESE CAR COMPANIES PRODUCE VEHICLES IN THE US THE CURRENCY LOSSES STILL AFFECT COSTS OF IMPORTED PARTS AND VEHICLES INDUSTRY EXECUTIVES EXPECT JAPANESE PRICES TO RISE 10 OR MORE IN THE NEXT FEW MONTHS DESPITE MAJOR COSTCUTTING EFFORTS OF COURSE THE HIGHER JAPANESE VEHICLE PRICES GO THE MORE MONEY DETROIT CAN DEMAND BY SHRINKING REBATES OR RAISING PRICES OUTRIGHT SEE RELATED ARTICLE AUTOS GOODBYE TO HAGGLING SAVVY CONSUMERS ARE BUYING THEIR CARS LIKE REFRIGERATORS WSJ AUG 20 1993 9308200017 930820 BUSINESS BRIEF PROPERTY TRUST OF AMERICA OFFERING OF PURCHASE RIGHTS IS DECLARED EFFECTIVE BY SEC PROPERTY TRUST OF AMERICA SAID ITS OFFERING OF RIGHTS TO PURCHASE 51 MILLION SHARES OF BENEFICIAL INTEREST AT 18375 A SHARE WAS DECLARED EFFECTIVE BY THE SECURITIES AND EXCHANGE COMMISSION THE SANTA FE NM REALESTATE INVESTMENT TRUST SAID IT WILL USE THE PROCEEDS OF THE OFFERING TO REPAY 75 MILLION OUTSTANDING ON A 125 MILLION REVOLVING CREDIT LINE AND TO MAKE ACQUISITIONS HOLDERS OF RECORD AS OF AUG 19 WILL RECEIVE A DIVIDEND OF ONE RIGHT FOR EACH PROPERTY TRUST SHARE THEY OWN SEVEN RIGHTS WILL BE REQUIRED TO PURCHASE ONE PROPERTY TRUST SHARE IN THE RIGHTS OFFERING THE RIGHTS WILL EXPIRE SEPT 17 SECURITY CAPITAL REALTY WHICH HOLDS A 244 STAKE IN PROPERTY TRUST INTENDS TO ACQUIRE 12 MILLION SHARES IN THE OFFERING THE COMPANY SAID THE COMPANY SAID THE OFFERING ISN'T BEING UNDERWRITTEN AN AFFILIATE OF THE REALESTATE INVESTMENT TRUST'S MANAGER SECURITY CAPITAL SW MULTIFAMILY INC WILL ACT AS PLACEMENT AGENT FOR UNSUBSCRIBED SHARES 9308200015 930820 PRIDE AND MISTRUST RACIAL HISTORY SPURS ILLINOIS TOWN TO TRY TO SAVE LOCAL COLLEGE THE SCHOOL ALWAYS OPEN TO BLACKS FACES MERGER WITH A WHITE INSTITUTION WHERE A CROSS ONCE BURNED BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL EAST ST LOUIS ILL STATE COMMUNITY COLLEGE HAS NO GYM AND NO STUDENTACTIVITIES CENTER AND HAS HAD ITS ACADEMIC ACCREDITATION PUT ON PROBATION TWICE IT HAS TROUBLE PLACING ITS GRADUATES IN JOBS AND HAS BEEN THROUGH THREE PRESIDENTS IN THE PAST FIVE YEARS BUT NONE OF THESE SETBACKS HIT AS HARD AS A DECISION BY THE STATE OF ILLINOIS TO END NEARLY 18 MILLION IN ANNUAL SUBSIDIES THAT HAVE HELPED SUSTAIN THE JUNIOR COLLEGE SINCE IT WAS STARTED 24 YEARS AGO WITH ITS LIFESUPPORT SYSTEM CUT OFF THE BELEAGUERED COLLEGE HAS EMBARKED ON A TORTUOUS CAMPAIGN TO KEEP GOING ALONG THE WAY THE LOCAL COMMUNITY HAS COME FACE TO FACE WITH ITS TROUBLED RACIAL HISTORY THE SEAMY UNDERSIDE OF ITS ECONOMY AND THE EXTENT OF ITS PRIDE IN ITS JUNIOR COLLEGE DESPITE THE SCHOOL'S SHORTCOMINGS EAST ST LOUIS RESIDENTS HAVE BEEN PRESENTED WITH A POSSIBLE RESCUE FOR SCC ABSORPTION INTO BELLEVILLE AREA COLLEGE A TWOYEAR SCHOOL IN A NEIGHBORING CITY WITH A GOOD ACADEMIC REPUTATION SOLID FINANCES AND STRONG VOCATIONAL PROGRAMS THAT MAY LOOK GOOD ON PAPER A STRUGGLING SCHOOL GIVEN NEW LIFE FROM A STRONGER ONE BUT EAST ST LOUIS RESIDENTS DON'T THINK IT IS SUCH A GOOD IDEA AT ALL THAT IS BECAUSE THE TWO CITIES HAVE POISONED RACE RELATIONS SCC'S STUDENTS AND FACULTY ARE PREDOMINANTLY BLACK WHILE BELLEVILLE AREA COLLEGE IS MOSTLY WHITE MIRRORING THE CITY OF BELLEVILLE SCC WAS ESTABLISHED IN THE LATE 1960S BECAUSE BELLEVILLE AREA COLLEGE DREW UP THE DISTRICT IT SERVED IN A WAY THAT EXCLUDED APPLICANTS FROM EAST ST LOUIS WHICH IS MOSTLY BLACK AND POOR AGAINST THAT SOUR BACKGROUND THE BELLEVILLE BAILOUT PLAN IS FALLING FLAT IN EAST ST LOUIS EVEN THOUGH THE PRICE OF INDEPENDENCE WILL ALMOST CERTAINLY BE HIGHER TAXES FOR ITS ALREADY HIGHLY TAXED RESIDENTS FOLKS HERE ARE TOO POOR TO PAY ANOTHER DIME IN PROPERTY TAXES SAYS ARTIS TALLEY A COMMUNITY ACTIVIST AND HOUSING DEVELOPER BUT THERE IS NO WAY WE CAN ACCEPT THE WHITE FOLKS ON THE HILL TO COME HERE AND RUN OUR COLLEGE HE SAYS THERE IS ANOTHER REASON EAST ST LOUIS RESIDENTS ARE AVERSE TO TURNING OVER THEIR LOCAL COLLEGE DESPITE ITS CURRENT ECONOMIC STRAITS SCC SITS ON 34 STATEOWNED ACRES OF VALUABLE MISSISSIPPI WATERFRONT PROPERTY THAT HAS BEEN SPARED THIS SUMMER'S DEVASTATING FLOODS A GAMBLING BOAT JUST OPENED ON ITS BANKS AND A NEW LIGHT RAIL SYSTEM IS SLATED TO HAVE A STOP THERE A NATIONAL PARK THAT ATTRACTS ABOUT THREE MILLION VISITORS A YEAR PLANS TO EXPAND OVER THE WATER FROM ST LOUIS MO GIVEN THE HISTORY OF ANTIPATHY BETWEEN THE BLACK AND WHITE COMMUNITIES PEOPLE IN EAST ST LOUIS ARE SUSPICIOUS OF WHY SOME BELLEVILLE RESIDENTS HAVE EXPRESSED AN INTEREST IN SCOOPING UP THE FLOUNDERING COLLEGE THE REASON THEY WANT US NOW IS BECAUSE WE ARE A STONE'S THROW AWAY FROM THE GAMBLING DOCK SAYS SCC STUDENT COUNSELOR FRANK NAVE THOSE SUSPICIONS DEEPENED WHEN MARK LEVY A BELLEVILLE ATTORNEY AND SCHOOLBOARD MEMBER CAME OUT AS A BIG SUPPORTER OF LEGISLATION THAT WOULD GIVE BELLEVILLE THE OPTION TO CLOSE SCC IN SEVEN YEARS FOLLOWING A MERGER THE PROPOSAL FAILED BUT MAY BE REINTRODUCED BUT BAC OFFICIALS SAY THEY ARE NOT INTERESTED IN GAINING CONTROL OF THE LAND AND WOULD RELINQUISH IT IF IT EVER OPTED TO CLOSE THE SCHOOL THE LEGACY OF MISTRUST BETWEEN THE TWO CITIES RUNS DEEP A PROMINENT GATE MORE OR LESS SEPARATES AFFLUENT BELLEVILLE FROM SCRUBBY EAST ST LOUIS SERVING AS A SYMBOL OF THE RACIAL DIVIDE IN 1988 TWO WHITE BELLEVILLE MEN PLEADED GUILTY TO BURNING A CROSS ON THE LAWN OF A BLACK FAMILY WHO HAD JUST MOVED INTO THE TOWN TWO YEARS AGO THE BELLEVILLE NEWSDEMOCRAT FOUND THAT BLACKS RECEIVED A DISPROPORTIONATELY HIGH PERCENTAGE OF TRAFFIC TICKETS FROM BELLEVILLE POLICE SO SCC A COLLEGE CONSISTING OF ONE NONDESCRIPT BUILDING OF TAN BRICKS HAS BECOME THE UNLIKELY SYMBOL OF THIS COMMUNITY'S DESIRE TO TAKE CONTROL OF ITS ECONOMIC DESTINY AND EMPOWER ITS RESIDENTS THOUGH RESIDENTS SEEM APATHETIC ABOUT THE WEEDS DRAINAGE PONDS AND VACANT BUILDINGS THAT MARK THE CITY THEY ARE DETERMINED TO KEEP SCC ALIVE AND INDEPENDENT BRENDA SMITH A 43YEAROLD SINGLE MOTHER OF FIVE AND A LIFETIME EAST ST LOUIS RESIDENT GRADUATED FROM SCC IN MAY AND WILL ENTER SOUTHERN ILLINOIS UNIVERSITY IN CARBONDALE NEXT MONTH AS A POLITICAL SCIENCE MAJOR THIS SCHOOL IS RIGHT HERE IN THE COMMUNITY SHE SAYS OF SCC AND I WAS ENCOURAGED TO TRY MY OWN HOMEGROWN SCHOOL IN ADDITION TO FURTHERING HER EDUCATION AND ADVANCING HER CAREER MS SMITH SAYS THAT ATTENDING SCC ENABLED HER TO SERVE AS A ROLE MODEL IN HER COMMUNITY MY KIDS WILL SAY IF MOM CAN DO IT SO CAN I' SHE SAYS RACE RELATIONS ASIDE BELLEVILLE IS THE BETTER SCHOOL IT HAS STATEOFTHEART AVIATION AND COMPUTER TECHNOLOGY COURSES AND A HIGH SUCCESS RATE IN PLACING GRADUATES IN JOBS SCC'S COURSES ON THE OTHER HAND TEND TO BE GEARED MORE TOWARD ACADEMICS RATHER THAN VOCATIONAL SKILLS AND IT OFTEN HAS A TOUGH TIME PLACING STUDENTS FOR THESE REASONS JOSEPH CIPFL PRESIDENT OF BELLEVILLE AREA COLLEGE SAYS STUDENTS FROM EAST ST LOUIS WOULD BENEFIT FROM A MERGER OF THE SCHOOLS MUCH MORE WOULD BE ACHIEVED IF WE WORKED TOGETHER AS A REGION BUT THESE LONGSTANDING RACIAL PROBLEMS ARE GETTING IN THE WAY OF THE NORMAL DECISIONMAKING PROCESS HE SAYS IN EAST ST LOUIS THE REV JOHN ROUSE HEAD OF THE MOUNT ZION BAPTIST CHURCH ALSO BELIEVES SCC STUDENTS WOULD BENEFIT FROM A MERGER WE'VE GOT TO BE ABLE TO SAY TO PEOPLE HEY WHEN YOU GRADUATE FROM HERE YOU'RE GOING TO HAVE A JOB' HE SAYS RIGHT NOW WE CAN'T DO THAT NEVERTHELESS MR ROUSE IS BACKING THE DRIVE TO KEEP SCC INDEPENDENT IF ALL ELSE FAILS I DON'T WANT THE COMMUNITY TO SAY WE COULD HAVE SUCCEEDED IF ROUSE HAD BEEN WITH US' HE SAYS FOR THE SCC BOOSTERS THE PROBLEM IS THAT EAST ST LOUIS IS CHRONICALLY BROKE ONCE WHEN IT WAS TOO STRAPPED TO MAKE A COURTORDERED CASH SETTLEMENT TO A PRISONER BEATEN BADLY IN JAIL BY ANOTHER INMATE THE TOWN WAS ORDERED TO GIVE HIM CITY HALL AND A 320ACRE CITY DUMP THE ORDER TO HAND OVER CITY HALL WAS LATER RESCINDED BUT THE MAN STILL GOT TO KEEP THE DUMP THE PEOPLE ARE POOR AS WELL THE UNEMPLOYMENT RATE IN THE CITY STANDS ABOVE 14 PER CAPITA INCOME IS A MERE 6421 ACCORDING TO THE 1990 CENSUS TO HANG ON TO THE COLLEGE AND THE REAL ESTATE IT SITS ON SOME CITIZENS HERE HAVE PROPOSED A SIN TAX OF SORTS AND ARE STRUGGLING TO GET 4200 SIGNATURES OF SUPPORT BY TOMORROW TO GET THE REFERENDUM PUT ON THE BALLOT SO FAR ABOUT 3800 PEOPLE HAVE SIGNED THE SPONSORS SAY THE TAX WOULD BE LEVIED ON THE ASSORTMENT OF HOT SHEET MOTELS IN EAST ST LOUIS WHERE CUSTOMERS GENERALLY CHECK IN FOR JUST AN HOUR ALSO TAXED WOULD BE THE NEW GAMBLING RIVERBOAT CALLED THE CASINO QUEEN IT HAS BEEN DOING A BOOMING BUSINESS EVEN THOUGH THE RIVER IS NOW SO HIGH FROM FLOODING THAT THE BOAT ISN'T PERMITTED TO LEAVE THE DOCK A TAX ALSO WOULD BE LEVIED ON STRIPTEASE JOINTS SUCH AS CHEEKS AND THE RED GARTER WHICH AREN'T IN EAST ST LOUIS PROPER BUT ABOUND IN A NEARBY TOWN SERVED BY SCC THE PROPOSAL COULD SAVE SCC AND SPARE EAST ST LOUIS FROM HAVING TO RAISE PROPERTY TAXES ON ITS RESIDENTS BACKERS FIGURE IT WOULD RAISE 38 MILLION A YEAR HALF COULD GO TO SCC THE REST TOWARD DEVELOPMENT IN EAST ST LOUIS AND SEVERAL NEIGHBORING COMMUNITIES I'M FOR ANYTHING THAT TAXES SIN SAYS MR ROUSE THE MINISTER IF THE TAX PLAN DOESN'T FLY EAST ST LOUIS RESIDENTS WILL VOTE IN NOVEMBER 1994 ON WHETHER TO MERGE SCC INTO BELLEVILLE OR RAISE LOCAL PROPERTY TAXES BUT THIS NEW PLAN TO SAVE THE SCHOOL HAS ONE NOTABLE DISSENTER GORDON BUSH EAST ST LOUIS'S MAYOR I FEEL WE HAVE A GOLDEN OPPORTUNITY TO HAVE AN AFROAMERICAN COLLEGE RUN CHIEFLY BY AFRICANAMERICAN PERSONS BUT I'M NOT FOR DOING IT BY RAISING TAXES OF ANY KIND SAYS MAYOR BUSH CRITICS SAY THE MAYOR'S OPPOSITION IS PURELY POLITICAL OWNERS OF THE CASINO QUEEN THE GAMBLING BOAT CONTRIBUTED ABOUT 25000 TO THE CAMPAIGNS OF CITY COUNCIL CANDIDATES CLOSE TO THE MAYOR ACCORDING TO CAMPAIGN RECORDS MAYOR BUSH SAYS THE CONTRIBUTIONS HAVE NOT AFFECTED HIS VIEWS BUT BEHIND THE TAX DEBATE IS THE CONVICTION THAT BLACK RESIDENTS OF EAST ST LOUIS WOULD NOT BE WELL TREATED AT THE LARGELY WHITE COLLEGE IN BELLEVILLE AND IN BELLEVILLE MANY PEOPLE AREN'T ENTHUSIASTIC ABOUT THE MERGER PLAN EITHER IF WE'RE GOING TO CONSOLIDATE WE SHOULD CONSOLIDATE UP SAYS TED FARMER A BELLEVILLE BOARD MEMBER FOR BLACK STUDENTS BELLEVILLE DOESN'T NECESSARILY REPRESENT A MOVE UP LINDA B BROWN DIRECTOR OF THE TRANSFER PROGRAM AT SCC SAYS SHE TALKS TO BLACK STUDENTS AT BELLEVILLE AREA COLLEGE WHO DECIDE TO TRANSFER TO SCC OFTEN BLACK STUDENTS ARE THE ONLY MINORITY IN THE CLASS AT BELLEVILLE AND THEY SOMETIMES FEEL UNCOMFORTABLE SHE SAYS BAC IS NOT SENSITIVE TO THE NEEDS OF PEOPLE OF COLOR SCC'S NEW PRESIDENT ROBERT RANDOLPH SAYS HE HAS TAKEN STEPS TO ADDRESS THE SCHOOL'S SHORTCOMINGS BY HIRING A NEW DIRECTOR OF VOCATIONAL TRAINING AND A NEW DEAN OF STUDENTS THESE STEPS HE SAYS SHOULD HELP THE SCHOOL STAND ON ITS OWN WITHOUT A MERGER I THINK THE SCHOOL SHOULD REMAIN INDEPENDENT HE SAYS MARK LEVY A MEMBER OF THE BELLEVILLE AREA COLLEGE SCHOOL BOARD IS AN ATTORNEY PRACTICING IN COLLINSVILLE ILL IN A PAGEONE ARTICLE FRIDAY ON EFFORTS TO SAVE STATE COMMUNITY COLLEGE IN EAST ST LOUIS ILL HE WAS INCORRECTLY REFERRED TO AS A BELLEVILLE ATTORNEY 9308200014 930820 LETTERS TO THE EDITOR GERMANY STILL GRANTS POLITICAL ASYLUM IN YOUR JULY 8 PAGEONE ARTICLE ON ILLEGAL IMMIGRATION IN EUROPE YOU COMMENT ON THE IMMIGRATION POLICIES OF EUROPEAN COUNTRIES YOU WRITE BURNED BY RACISM GERMANY STOPPED HEARING MOST ASYLUM PLEAS AS OF JULY 1 NOT TRUE GERMANY CONTINUES TO GRANT POLITICAL ASYLUM THE NEW REGULATIONS CLOSING THE DOOR TO THOSE WHO ARE EVIDENTLY NOT VICTIMS OF POLITICAL PERSECUTION HAVE NOTHING TO DO WITH RACISM THE POLITICAL DEBATE ABOUT CHANGING THE ASYLUM LAWS BEGAN LONG BEFORE THE RECENT OUTBREAKS OF XENOPHOBIC VIOLENCE WHEN THE WORDS POLITICAL ASYLUM UTTERED BY ANY FOREIGNER COMING TO GERMANY BECAME KNOWN AS THE MAGIC TERM FOR RECEIVING INSTANT SOCIAL BENEFITS HOUSING AND A TEMPORARY RESIDENCE PERMIT IT BECAME OBVIOUS THAT SOMETHING HAD TO BE DONE TO LIMIT THE ASYLUM PROCEDURE TO THOSE FOR WHOM IT WAS MEANT IN THE FIRST PLACE GERMANY IS FIGHTING RACISM BY PENALIZING ITS VICTIMS WITHHOLDING CITIZENSHIP FROM TURKS BORN THERE AGAIN NOT TRUE IT IS GOVERNMENT POLICY THAT FOREIGNERS WHO HAVE DECIDED THAT GERMANY HAS BECOME THEIR HOME SHOULD ALSO BECOME GERMAN CITIZENS AT PRESENT FOREIGNERS BETWEEN THE AGES OF 16 AND 23 ARE GRANTED GERMAN CITIZENSHIP UPON REQUEST AFTER EIGHT YEARS OF LEGAL RESIDENCE AND SIX YEARS OF SCHOOL ATTENDANCE FOR OLDER FOREIGNERS THE RESIDENCY REQUIREMENT IS 15 YEARS IN BOTH CASES THE IMMIGRANT HAS TO GIVE UP HIS OR HER PREVIOUS CITIZENSHIP RECENTLY THE GERMAN GOVERNMENT DECLARED ITS INTENTION TO FACILITATE NATURALIZATION OF SECOND GENERATION IMMIGRANTS 9308200013 930820 BUSINESS BRIEF GLENFED INC HOLDERS BACK STOCK ISSUE OF 425 MILLION TO HELP UNIT GLENFED INC SAID SHAREHOLDERS APPROVED A PLAN TO REVIVE ITS AILING GLENDALE FEDERAL BANK UNIT WITH AN INFUSION OF 425 MILLION A PLAN THAT NOW SEEMS LIKELY TO SUCCEED BECAUSE OF BACKING FROM OUTSIDE INVESTORS THE GLENDALE CALIF THRIFT WHICH HAS FLIRTED WITH REGULATORY SEIZURE FOR SEVERAL YEARS BECAUSE OF LOW CAPITAL LEVELS IS NOT OUT OF THE WOODS IT IS CARRYING A LARGE LOAD OF PROBLEM LOANS THAT WILL CREATE A DRAG ON FUTURE EARNINGS AND IT MUST RAISE SOME ADDITIONAL CAPITAL TO MEET HIGHER MINIMUM REQUIREMENTS BY THE END OF 1994 UNDER THE PLAN GLENFED WILL ISSUE 250 MILLION IN COMMONSTOCK RIGHTS AND 175 MILLION IN CONVERTIBLE PREFERRED STOCK AN INVESTMENT BANKER WITH FIRST BOSTON CORP GLENFED'S ADVISOR SAID THAT INSTITUTIONAL INVESTORS HAVE AGREED TO PURCHASE THE PREFERRED PLUS WHATEVER COMMONSTOCK RIGHTS THAT EXISTING SHAREHOLDERS CHOOSE NOT TO EXERCISE 9308200012 930820 FOREIGN EXCHANGE IN ABRUPT SHIFT US INTERVENES TO SLOW YEN'S HISTORIC RISE STRONG CURRENCY HAS HURT JAPAN'S INDUSTRY TOKYO HINTS AT A NEW ATTITUDE MR MATSUSAKA SEES A BARGAIN BY STAFF REPORTERS JOHN BUSSEY AND MICHAEL WILLIAMS IN TOKYO AND ALAN MURRAY IN WASHINGTON IN A REMARKABLE INDICATION OF JAPAN'S POSTWAR ECONOMIC TRIUMPH THE YEN NEARLY REACHED PARITY WITH THE US PENNY THIS WEEK HITTING A RECORD 10040 TO THE DOLLAR ON TUESDAY THEN YESTERDAY AN ABRUPT ABOUTFACE IN US POLICY AT LEAST TEMPORARILY HALTED THE HISTORIC ASCENT THE US GOVERNMENTAFTER SAYING FOR MONTHS THAT THE DOLLAR SHOULD BE WEAKERINTERVENED HEAVILY IN FOREIGNEXCHANGE MARKETS BY SELLING YEN AND BUYING DOLLARS LEADING SURPRISED TRADERS TO DRIVE THE RATE BACK TO 10590 YEN TO THE DOLLAR IN LATE NEW YORK TRADING ABOUT MIDDAY FRIDAY IN TOKYO THE YEN WAS QUOTED AT 10472 TO THE DOLLAR US OFFICIALS WERE QUICK TO SAY THEY HAVE NO INTENTION OF PLACING A CEILING ON THE YEN'S VALUE THERE ALSO IS NO CERTAINTY THE DOLLAR WILL HOLD ITS NEW POSITION AGAINST THE YEN TREASURY UNDERSECRETARY LAWRENCE SUMMERS SAID THE POLICY REVERSAL WAS PARTLY INTENDED AS AN ENCOURAGING RESPONSE TO SIGNS THAT THE JAPANESE ARE MOVING TO STIMULATE THEIR ECONOMY BY CUTTING INTEREST RATES SOMETHING THE US HAS SOUGHT FOR SOME DAYS EARLIER THIS WEEK THE JAPANESE CENTRAL BANK ALLOWED A KEY INTEREST RATE TO DROP BY A QUARTER PERCENTAGE POINT AND US OFFICIALS APPARENTLY BELIEVE THAT RATES MAY DROP FURTHER WHAT'S MORE THE JAPANESE GOVERNMENT STEPPED UP ITS REQUESTS FOR HELP FROM ITS ALLIES IN THE GROUP OF SEVEN INDUSTRIALIZED NATIONS TO STOP THE YEN'S RISE THE US ALSO FEARED THAT A SURPRISINGLY LARGE INCREASE IN THE US TRADE DEFICIT ANNOUNCED YESTERDAY MIGHT SEND THE DOLLAR PLUMMETING ABSENT SUPPORT FROM THE FEDERAL RESERVE SOME TRADERS SPECULATED YESTERDAY THAT THE US GOVERNMENT'S INTERVENTION MIGHT HAVE BEEN ITS PART OF A QUID PRO QUO DEAL WITH THE JAPANESE IN WHICH JAPAN AGREED TO EASE ACCESS TO ITS MARKETS IN THE US THE ROUGHLY 20 RISE IN THE YEN AGAINST THE DOLLAR SINCE THE BEGINNING OF THE YEAR HAS HELPED MANY AMERICAN COMPANIES BY MAKING THEIR GOODS MORE PRICECOMPETITIVE OVERSEAS AND MAKING JAPANESE GOODS MORE EXPENSIVE IN DOLLAR TERMS IN THE US THE US HAS HOPED THE STRONGER YEN ALONG WITH OTHER MEASURES WILL TRIM JAPAN'S MAMMOTH TRADE SURPLUS WITH AMERICA THE STRONG YEN HOWEVER ALSO FORCES STILLSTRAPPED AMERICAN CONSUMERS TO PAY MORE FOR JAPANESE PRODUCTS BUT IT IS IN JAPAN THAT THE MOST STRIKING AND PERHAPS THE MOST SERIOUS CONCERNS LIE RIGHT NOW INDEED THE YEN IS THE PROBLEM THE DOLLAR HAS BEEN RISING AGAINST MOST OTHER CURRENCIES ALTHOUGH THE YEN'S STRENGTH REFLECTS THE REMARKABLE GROWTH OF THE JAPANESE ECONOMY IN THE PAST 48 YEARS THE JAPANESE ARE WORRIED ABOUT THE DAMAGE THE SURGING YEN IS DOING TO BUSINESS AND ABOUT DEEP DISTORTIONS IN THEIR ECONOMY THAT HELPED FUEL THAT RISE IN FACT TO THEM THE YEN'S ASCENT IS A FLASHING RED LIGHT THE GOVERNMENT HAS TO SHOW LOTS OF RESOLVE TO PASS ON THE BENEFITS OF THE STRONGER YEN TO JAPANESE CONSUMERS DECLARES MIKIO WAKATSUKI A FORMER DEPUTY GOVERNOR OF JAPAN'S CENTRAL BANK IF THEY DON'T A LOT OF JAPANESE EXPORT INDUSTRIES WILL BE ELIMINATED THIS WEEK IN FACT A SUBCONTRACTOR FOR SANYO ELECTRIC CORP SAID IT WILL CLOSE A STEREO FACTORY CITING THE STRONG YEN ECONOMISTS ARE TRIMMING FORECASTS FOR JAPAN'S GROWTH THIS YEAR WORRIED POLITICIANS ARE SUDDENLY TALKING VERY UNJAPANESE TALK ABOUT JAPAN'S TRADE BARRIERS JAPANESE MARKETS ARE EXTREMELY CLOSED IN INVISIBLE WAYS JAPAN'S NEW TRADE MINISTER HIROSHI KUMAGAI CONFESSED LAST WEEK OUR WAYS MUST BE CORRECTED IF JAPANESE BUSINESS HOPES TO SURVIVE IN THE INTERNATIONAL COMMUNITY THIS NEW MENTALITY IS LARGELY JUST RECOGNITION OF AN OLD REALITY ALTHOUGH A LOT OF FORCES HAVE BEEN DRIVING UP THE YEN A CRUCIAL ONE IS JAPAN'S INABILITY TO RECYCLE THE MONEY IT EARNS ON ITS HUGE EXPORTS BY BUYING MORE PRODUCTS ABROAD THAT IS THE DISTORTION WORRYING EVERYONE WHEN JAPAN SELLS GOODS OVERSEAS THE PROCEEDS ARE EVENTUALLY CONVERTED TO YEN DRIVING UP DEMAND FOR THE CURRENCY AND THUS ITS VALUE IN MOST CAPITALIST ECONOMIES SAVVY CONSUMERS AND COMPANIES QUICKLY TAKE THEIR STRONGER CURRENCY AND BUY IMPORTS BIDDING UP THE VALUE OF COMPETING CURRENCIES AND DRIVING THEIR OWN BACK DOWN NOT IN JAPAN THE NOTORIOUS BARRIERS TO MOST IMPORTS CLUBBY BUSINESS RELATIONS THAT INHIBIT FOREIGN COMPETITION A DISTRIBUTION SYSTEM THAT JACKS UP PRICES REGULATIONS THAT PROTECT INEFFICIENT BUSINESSES ARE LARGELY RESPONSIBLE FOR KEEPING IMPORTS FROM GROWING FAST ENOUGH TO OFFSET THE ENORMOUS TRADE SURPLUS THE DISTORTION SHOWS UP IN A VARIABLE THAT DOES MOVE THE YEN AND OVER THE PAST SEVEN MONTHS IT HAS BEEN SKYROCKETING HOW DOES ALL THIS AFFECT THE CONSUMER EIJI MATSUSAKA A 34YEAROLD PHOTOGRAPHER IN TOKYO RECENTLY SHOPPED FOR A CAMERA AND FOUND ONE HE LIKES FOR 350000 YEN 3305 HE DISCOVERED HOWEVER THAT THE SAME CAMERA RETAILS FOR 1300 IN NEW YORK WHAT A BARGAIN HE SAYS MOST JAPANESE JUST GRUMBLE AND PAY THE HIGHER PRICE BUT MR MATSUSAKA IS PLANNING A BUYING TRIP TO THE US LATER THIS YEAR IN JAPAN ONLY A SMALL PART OF THE WINDFALL GAIN OF THE RISE IN THE CURRENCY IS CHANNELED THROUGH TO THE CONSUMER SAYS KENNETH COURTIS AN ECONOMIST AT DEUTSCHE BANK AG IN TOKYO IT REMAINS LOCKED UP IN THE CORPORATE SIDE AND THE CORPORATION USES IT TO ADJUST TO THE NEW COST STRUCTURE CREATED BY THE STRONG YEN THAT ALSO IS THE VIEW OF SOME IN JAPAN'S NEW COALITION GOVERNMENT AFTER CAMPAIGNING ON A VAGUE PROCONSUMER PLATFORM THE OFFICIALS NOW SAY THEY PLAN TO FIGHT THE TRADE SURPLUS BY DEREGULATING GIVING PRIORITY TO THE CONSUMER AND IMPROVING ACCESS TO THE JAPANESE MARKET ON THURSDAY IN JAPAN AFTER HOLDING A SPECIAL CABINET MEETING ON THE YEN AND THE ECONOMY THE GOVERNMENT REPEATED ITS CONSUMERIST RHETORIC BUT FAILED TO DELIVER SPECIFIC MEASURES TO ENCOURAGE IMPORTS A MINISTRY OF FINANCE ADVISORY PANEL MEANWHILE HAS ALREADY CONCLUDED THAT GOVERNMENT PROTECTION OF BUSINESS IS KEEPING CONSUMER PRICES HIGH ONE SURVEY FOUND JUST 44 OF JAPANESE BELIEVE THAT THE STRONG YEN HAS MADE PRODUCTS CHEAPER JAPAN'S TRADE SURPLUS A STUNNING 1066 BILLION IN 1992 IS EXPECTED TO SURGE TO MORE THAN 130 BILLION THIS YEAR IT IS RISING PARTLY BECAUSE THE VALUE OF THE DOLLARDENOMINATED SURPLUS INCREASES AS THE YEN BUYS MORE DOLLARS BUT SOME ECONOMISTS EXPECT A PLATEAUING OR EVEN A CONTRACTION OF THE SURPLUS NEXT YEAR ROBERT FELDMAN AN ECONOMIST AT SALOMON BROS INC SAYS THE TURNING POINT MAY HAVE COME LAST SPRING WHEN THE THREEMONTH RUNNING AVERAGE OF JAPAN'S SURPLUS BEGAN DECLINING EVER SO SLIGHTLY IN FACT THE GROWTH IN THE VOLUME OF JAPAN'S IMPORTS HAS RECENTLY EXCEEDED THE GROWTH IN THE VOLUME OF EXPORTS WHAT THE STRONG YEN SAYS TO ME IS THAT STANDARD ECONOMIC FORCES REALLY DO WORK HE SAYS NEVERTHELESS SEVERAL FACTORS COULD EXACERBATE THE TRADE SURPLUS AND KEEP THE YEN STRONG JAPAN IS IN A SLUMP IN THE FISCAL YEAR ENDING NEXT MARCH ECONOMIC GROWTH ISN'T EXPECTED TO EXCEED 15 THE CONSUMER IS HUNKERED DOWN DEPRESSING DOMESTIC DEMAND AND THUS IMPORTS MUCH OF INDUSTRY IS SADDLED WITH EXCESS CAPACITY THE MOST IN 20 YEARS BY SOME ESTIMATES AND SO ISN'T LIKELY TO BE SPENDING MUCH SOON MOST ECONOMISTS' PROJECTIONS FOR GROWTH IN JAPAN ASSUME SIZABLE FISCAL STIMULUS SUCH AS A BIG TAX CUT BUT JAPAN'S NEW INEXPERIENCED GOVERNMENT MAY LACK THE POLITICAL HEFT TO PUSH THROUGH ANY SUCH MEASURE MUCH OF JAPAN'S TRADE SURPLUS TRADITIONALLY HAS BEEN RECYCLED THROUGH JAPANESE INVESTMENT ABROAD PURCHASES OF REAL ESTATE COMPANIES AND SECURITIES BUT THAT IS LESS TRUE TODAY BECAUSE JAPANESE COMPANIES ARE PINCHED AT HOME THOUGH THEY ARE RECYCLING SOME MONEY BY PAYING OFF SHORTTERM DEBT ABROAD OVERSEAS DIRECT INVESTMENT IN THINGS SUCH AS PROPERTY FELL LAST YEAR TO 17 BILLION FROM 30 BILLION IN 1991 IN THE FIRST FIVE MONTHS OF THIS YEAR IT WAS DOWN TO ABOUT 5 BILLION THE SCENARIO LAID OUT BY PESSIMISTS IN TOKYO GOES LIKE THIS IF DOMESTIC DEMAND STAYS WEAK AS MOST EXPECT THE DEMAND FOR IMPORTS WON'T EXPAND MUCH THE TRADE SURPLUS WILL STAY HIGH OR GROW FURTHER AND THE YEN WILL REMAIN STRONG EXPORTERS STRUGGLING TO CUT COSTS AT HOME TO MAKE UP FOR DIMINISHED PROFITS ABROAD WILL SQUEEZE SUPPLIERS AND EMPLOYEES TO HOLD DOWN PRICES AND WAGES DEFLATION WILL SEEP THROUGH THE ECONOMY MAKING EVERYONE FEEL POORER AND FURTHER WEAKENING DOMESTIC DEMAND THESE DAYS JAPAN'S MOST INEFFICIENT INDUSTRIES ARE GETTING OFF THE LIGHTEST RICE FARMERS FOR EXAMPLE ARE PROTECTED BY GOVERNMENT REGULATION THEY MAKE UP FOR THEIR OWN INEFFICIENCY BY CHARGING CONSUMERS EXORBITANT PRICES BATTERED MANUFACTURERS TAKING THE BRUNT OF THE YEN'S RISE HAVE BEEN JAPAN'S HIGHLY COMPETITIVE MANUFACTURING EXPORTERS IN REACTION THEY WILL MOVE MORE AND MORE PRODUCTION ABROAD WHERE COSTS ARE LOWER AND THAT MAY SLOWLY HOLLOW OUT PARTS OF JAPAN'S MANUFACTURING BASE JUST AS IT DID IN THE US IN THE LATE 1980S IN CONTRAST JAPANESE EXPORTERS ENDURED A BAD BOUT OF ENDAKA HIGH YEN BUT A TREMENDOUS BOOM IN JAPANESE CONSUMPTION BAILED THEM OUT NOW HOWEVER SUCH A RESCUE SEEMS UNLIKELY JARDINE FLEMING SECURITIES LTD EXPECTS JAPAN'S ANNUAL AUTO SALES FOR EXAMPLE TO STAY ESSENTIALLY FLAT THROUGHOUT THE 1990S EXPORTERS HAVE BEEN SWEATING BULLETS FOR MONTHS WHEN THE JAPAN EXTERNAL TRADE ORGANIZATION SURVEYED MANUFACTURERS IN LATE APRIL ONLY 21 OF 527 COMPANIES SAID THEY COULD MAKE MONEY ON EXPORTS IF THE YEN GREW STRONGER THAN 110 TO THE DOLLAR DAIWA RESEARCH INSTITUTE ESTIMATES THAT 10 OF THE NATION'S 11 AUTO MAKERS WILL LOSE MONEY IF THE YEN HITS AND STAYS AT 100 TO THE DOLLAR HOW DO THE COMPANIES COPE THEY RAISE PRICES ABROAD TO MAKE UP FOR THE FACT MORE DOLLARS FOR EXAMPLE ARE NEEDED TO BUY THE SAME AMOUNT OF YEN MINOLTA CAMERA CO RAISED PRICES OF EXPORT CAMERAS BY 5 IN APRIL AND ANOTHER 8 IN JULY TOYOTA MOTOR CORP RAISED ITS US PRICES AN AVERAGE OF 12 IN FEBRUARY ITS CHAIRMAN SAYS A CONSIDERABLE PRICE RISE MAY BE IN THE OFFING SOME EXPORTERS ARE ALSO SLASHING COSTS MUCH AS THEY DID DURING THE LAST ENDAKA HONDA MOTOR CO HAS CONSOLIDATED THREE PRODUCTION LINES AT A BIG JAPANESE FACTORY INTO TWO OTHER COMPANIES ARE CONSIDERING DEEPER CUTS I DON'T THINK THERE'S A TABOO AGAINST DISCUSSING PAY CUTS NIPPON STEEL CORP'S PRESIDENT TAKASHI IMAI SAID RECENTLY BREAKING A JAPANESE TABOO BUT THE MAIN STRATEGY IS TO SHIFT PRODUCTION OVERSEAS TOYOTA IS JUST A FEW YEARS SHY OF COMPLETING A MAMMOTH PROJECT TO EXPAND ITS OVERSEAS CAPACITY BY MORE THAN 600000 CARS A YEAR ACCORDING TO INDUSTRIAL BANK OF JAPAN JAPANESE AUTO MAKERS PRODUCED 8 OF THEIR CARS ABROAD IN 1985 BUT BY 2000 THAT WILL RISE TO 42 MEANWHILE OUTPUT AT PLANTS IN JAPAN WILL FALL TO 109 MILLION CARS BY THE TURN OF THE CENTURY DOWN 20 FROM THE 1990 PEAK IN THE ELECTRONICS INDUSTRY AIWA CO SAYS IT WILL BUILD AN AUDIOEQUIPMENT FACTORY IN MALAYSIA AS PART OF A PLAN TO MAKE 75 OF ITS PRODUCTS OVERSEAS UP FROM 66 NOW MITSUBISHI ELECTRIC CORP HAS GIVEN UP MANUFACTURING VIDEOCASSETTE RECORDERS IN JAPAN FOR EXPORT EXPORTS DON'T PAY A SPOKESMAN EXPLAINS THERE'S NO COMPETITIVE COST EDGE ANYMORE BLUECHIP JAPANESE MANUFACTURERS INSIST THAT THE MOVES ABROAD WILL NOT CAUSE JOB LOSSES AT HOME ELECTRONICS COMPANIES FOR INSTANCE SAY THEY ARE MAKING JUST LOWTECH PRODUCTS OVERSEAS AND WILL USE THE IDLED DOMESTIC FACTORIES TO PRODUCE HIGHVALUEADDED GOODS IN JAPAN NOT SO SAYS CHUCK GOTO AN ANALYST AT SG WARBURG SECURITIES HE AGREES THAT A FEW HIGHTECH HITS SUCH AS MINIDISK PLAYERS WILL TAKE UP PRODUCTION SLACK IN JAPAN YET HE CONTENDS THAT MOVING PRODUCTION OF HIGHVOLUME ITEMS SUCH AS COLORTV SETS ABROAD WILL FORCE JAPANESE COMPANIES TO TRIM EXCESS CAPACITY LIKE US COMPANIES DID IN THE 1970S IN THE SHORT TERM MOST ECONOMISTS SAY JAPAN'S UNEMPLOYMENT RATE NOW 25 OF THE LABOR FORCE IS UNLIKELY TO TOP 3 THEY SAY JAPANESE COMPANIES ARE STILL SQUEAMISH ABOUT LAYOFFS AND SO CARRY EMPLOYEES WHETHER THERE IS WORK FOR THEM OR NOT BUT THE PRESSURE TO CUT PAYROLLS IS RISING SANRITSU DENKI CO A SUBCONTRACTOR TO SANYO ELECTRIC IS CLOSING A FACTORY AND LETTING GO 168 EMPLOYEES BECAUSE SANYO DECIDED TO STOP BUYING SANRITSU'S PORTABLE STEREOS FOR SALE IN JAPAN TO COMPETE WITH CHEAPER STEREOS MADE ABROAD AT JAPANESEOWNED PLANTS SANYO SAYS IT WILL PROBABLY MAKE ITS OWN IN MALAYSIA OR SINGAPORE JAPANESE CONSUMERS USED TO PAY A PREMIUM FOR MADEINJAPAN SAYS HIROYUKI NAKAMURA SANRITSU'S MANAGING DIRECTOR BUT NOW JAPAN'S ECONOMIC SLUMP AND A GRADUAL APPEARANCE OF SOME CHEAPER IMPORTS ARE ENCOURAGING A NEW BARGAINHUNTING CULTURE NIKKEI TRENDY A MAGAZINE AIMED AT YOUNG CONSUMERS RECENTLY RAN A 40PAGE GUIDE ON HOW TO TRACK DOWN ELUSIVE IMPORT BARGAINS AMONG THE FINDS RALPH LAUREN JEANS NOW 9800 YEN DOWN 18 AND HEINZ KETCHUP 158 YEN DOWN 47 EVEN DETROIT IS GOING ALONG FOR THE RIDE FORD MOTOR CO CUT TAURUS PRICES IN JAPAN BY 5 LAST FALL THAT ALONG WITH FORD'S SIZABLE DEALERSHIP NETWORK IN JAPAN HELPED BOOST ITS JAPANESE SALES 59 IN THE FIRST SEVEN MONTHS OF 1993 TO 2992 CARS FORD SAYS IT WILL PROBABLY TRIM PRICES AGAIN THIS FALL AND EXPECTS TO SELL 10000 VEHICLES NEXT YEAR FORD'S EXPENSIVE COMMITMENT TO BUILDING A SALES OPERATION IN JAPAN IS PAYING OFF INDEED DIRECT INVESTMENT IS CONSIDERED ONE OF THE BEST WAYS TO EXPAND EXPORTS HOWEVER THE RISING YEN MAKES SETTING UP IN JAPAN A LOT MORE EXPENSIVEAND DAUNTINGFOR AMERICANS AT THESE YEN LEVELS DEUTSCHE BANK'S MR COURTIS SAYS COMPANIES ARE BEING TEMPTED TO CASH OUT OF JAPAN 9308200011 930820 INTERNATIONAL BROKEN HILL REPORTS IMPROVEMENT IN SALES OF STEEL IN AUSTRALIA SPECIAL TO THE WALL STREET JOURNAL MELBOURNE AUSTRALIA BROKEN HILL PROPRIETARY CO AUSTRALIA'S MAIN STEEL PRODUCER SAID DOMESTIC STEEL SALES ROSE 9 TO 337000 METRIC TONS IN JULY FROM A YEAREARLIER 310000 TONS AND IMPROVED 11 FROM JUNE'S 305000 TONS DOMESTIC STEEL SALES ARE CONSIDERED AN INDICATOR OF OVERALL ECONOMIC ACTIVITY A METRIC TON IS 220462 POUNDS THE 9 YEARONYEAR INCREASE FOR JULY IMPROVED ON JUNE'S 7 YEARONYEAR GAIN BUT FELL SHORT OF MAY'S 25 GROWTH BHP SAID JULY'S EXPORT SALES OF STEEL FELL 6 FROM THE PREVIOUS MONTH TO 201000 TONS FROM 214000 TONS BUT ROSE 18 FROM THE YEAREARLIER PERIOD'S 171000 TONS THE TRADITIONAL MARKETS FOR STEEL CONTINUE TO GROW STEADILY FROM THE VERY LOW BASE OF LAST YEAR THE COMPANY SAID HOWEVER THE RECOVERY IS FAR FROM UNIFORM BHP SAID HOUSING ACTIVITY WHICH DROVE STEEL DEMAND DURING THE RECESSION APPEARS TO HAVE FLATTENED HOWEVER THE COMPANY SAID NONRESIDENTIAL BUILDING WHICH HAS BEEN IN A DEEP SLUMP FOR MORE THAN TWO YEARS IS SHOWING SOME IMPROVEMENT BHP SAID THERE IS ALSO INCREASED DEMAND FROM THE AUTOMOTIVE INDUSTRY AND THE RURAL SECTOR COMMENTING ON OTHER PRODUCTION FIGURES FOR JULY BHP SAID OIL PRODUCTION FROM ITS MAIN FIELDS IN THE BASS STRAIT WAS 2 HIGHER THAN THE YEAREARLIER PERIOD'S AND THAT OUTPUT OF LIQUEFIED NATURAL GAS FROM THE NORTH WEST SHELF FELL 2 BHP'S SHARE OF OIL PRODUCTION FROM THE KUTUBU FIELD IN PAPUA NEW GUINEA WAS 367000 BARRELS FOR JULY WHICH MORE THAN DOUBLED THE YEAREARLIER PERIOD'S 164000 BARRELS AND IS AN INCREASE OF 23 FROM JUNE COPPER PRODUCTION FROM THE ESCONDIDA MINE IN CHILE FELL 16 IN JULY FROM THE YEAREARLIER PERIOD BHP SAID 9308200010 930820 HYUNDAI STRIKE ENDS AS WORKERS ACCEPT PAY ACCORD SPECIAL TO THE WALL STREET JOURNAL SEOUL STRIKING WORKERS AT HYUNDAI HEAVY INDUSTRIES CO ACCEPTED A TENTATIVE PAY AGREEMENT ENDING A SEVENWEEK STRIKE COMPANY OFFICIALS SAID OF THE 17350 WORKERS WHO VOTED 52 ENDORSED THE TENTATIVE AGREEMENT REACHED WEDNESDAY BY REPRESENTATIVES OF UNION AND MANAGEMENT ON WEDNESDAY THE UNION ACCEPTED THE COMPANY OFFER FOR A 474 WAGE INCREASE AND A 200 PRODUCTIVITYACHIEVEMENT BONUS MANAGEMENT PROMISED NOT TO SEEK ANY CIVIL AND CRIMINAL ACTIONS AGAINST WORKERS WHO TOOK PART IN THE PROLONGED STRIKE THE VOTE IN THE WORLD'S LARGEST SHIPYARD ENDED LABOR DISPUTES IN AFFILIATES OF CONGLOMERATE HYUNDAI GROUP NINE UNITS OF HYUNDAI INCLUDING HYUNDAI MOTOR CO ENTERED LABOR DISPUTES IN EARLY JUNE DEMANDING MORE WAGES AND A GREATER SAY IN MANAGEMENT THE PEACEFUL CONCLUSION OF THE HYUNDAI SHIPYARD DISPUTE CAME UNDER STRONG INDICATIONS BY THE GOVERNMENT THAT IT WOULD INVOKE EMERGENCY POWERS SOON TO END THE PROLONGED LABOR ACTION SEPARATELY HYUNDAI MOTOR SAID IT CONTRACTED WITH BELOST CO A HYUNDAI DEALERSHIP IN BELARUS TO SELL 10000 CARS OVER THE NEXT FIVE YEARS THIS IS THE FIRST SHIPMENT BY A SOUTH KOREAN AUTOMOBILE COMPANY TO THE SECOND LARGEST INDEPENDENT REPUBLIC OF THE FORMER SOVIET UNION A HYUNDAI OFFICIAL SAID THE FIRST DELIVERY WILL BE MADE IN OCTOBER WITH THE SHIPMENT OF 100 SUBCOMPACT SONATAS AND 70 FOURWHEELDRIVE GALLOPERS 9308200009 930820 LOAN COMMITMENTS BY BUILDING SOCIETIES IN UK FELL FOR JULY SPECIAL TO THE WALL STREET JOURNAL LONDON NET NEW LOAN COMMITMENTS BY UNITED KINGDOM BUILDING SOCIETIES FELL IN JULY FROM JUNE AND WERE DOWN 15 FROM A YEAR EARLIER THE BUILDING SOCIETIES ASSOCIATION SAID THAT NET NEW COMMITMENTS ON MORTGAGE LENDING OR FINANCE PROMISED BUT NOT YET ADVANCED FELL TO 294 BILLION 446 BILLION IN JULY FROM 318 BILLION IN JUNE AND WAS DOWN FROM 345 BILLION IN JULY 1992 MORTGAGE ADVANCES OR MONEY ACTUALLY RELEASED TO BORROWERS ROSE 43 IN JULY BUT WERE ALSO DOWN 15 FROM JULY 1992 ADVANCES WERE AT 317 BILLION IN JULY UP FROM 304 BILLION IN JUNE AND DOWN FROM 374 BILLION IN JULY 1992 THE ASSOCIATION SAID BUILDING SOCIETIES LAST MONTH HAD NET WITHDRAWALS OF 61 MILLION COMPARED WITH WITHDRAWALS OF 56 MILLION IN JUNE THE WITHDRAWALS IN JULY AND JUNE FOLLOWED SIX MONTHS OF NET RECEIPTS FLOWING INTO THE BUILDING SOCIETIES THAT TOTALED 270 BILLION THE JULY FIGURE COMPARES WITH NET WITHDRAWALS OF 325 MILLION IN JULY 1992 COMMENTING ON THE FIGURES ADRIAN COLES DIRECTORGENERAL OF THE ASSOCIATION SAID THAT GIVEN THE RECENT BT3 SHARE OFFER THE FINAL LEG OF BRITISH TELECOMMUNICATIONS PLC'S PRIVATIZATION THE FALL IN NEW ADVANCES IN JULY WAS EXPECTED ALSO SEASONAL FACTORS WERE AT PLAY AS CUSTOMERS TOOK OUT MONEY TO PAY FOR HOLIDAYS AND CARS ON NET LENDING MR COLES SAID THAT COMPARISONS WITH LAST YEAR ARE MISLEADING BECAUSE OF THE RUSH TO BEAT THE HOLIDAY ON STAMP DUTY TAX IN 1992 NEW COMMITMENTS HAVE REMAINED AROUND 3 BILLION FOR FIVE MONTHS HOWEVER SUGGESTING THAT THE CURRENT LEVELS OF LENDING ACTIVITY WILL BE BROADLY MAINTAINED OVER THE COMING MONTHS HE SAID 9308200008 930820 ECONOMY AIRLINE PANEL GIVES REPORT TO CLINTON BUT PRIVATIZATION PROPOSALS GIVE PAUSE BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON YESTERDAY FORMALLY RECEIVED THE REPORT OF A STUDY GROUP ON AIRLINES BUT THERE ARE STRONG DOUBTS WITHIN HIS ADMINISTRATION ABOUT THE MOST SIGNIFICANT PROPOSALS THE PRESIDENT DIDN'T ENDORSE THE COMMISSION'S PROPOSALS AND INSTEAD ASSIGNED TRANSPORTATION SECRETARY FEDERICO PENA AND COUNCIL OF ECONOMIC ADVISERS CHAIRWOMAN LAURA TYSON TO DRAFT A SEPARATE ADMINISTRATION PLAN SOME CLINTON ADMINISTRATION OFFICIALS ARE SKEPTICAL IN PARTICULAR ABOUT A PROPOSAL TO PARTIALLY PRIVATIZE THE AIRTRAFFICCONTROL SYSTEM AND ALLOW ITS ADMINISTRATORS TO USE SOME CORPORATE FINANCING TO BUY EQUIPMENT AND SOFTWARE COMMISSION MEMBERS ECHOING AIRLINES AND AIRTRAFFIC CONTROLLERS ARGUED THAT THE CHANGE IS NECESSARY BECAUSE AN UNWIELDY GOVERNMENT PROCUREMENT PROCESS HAS PRODUCED HARMFUL DELAYS IN THE FEDERAL AVIATION ADMINISTRATION'S 32 BILLION EFFORT TO MODERNIZE THE NATION'S AIRTRAFFICCONTROL SYSTEM AND VICE PRESIDENT AL GORE'S STAFF IS ENDORSING THE IDEA AS A GOOD EXAMPLE OF MR GORE'S REINVENTING GOVERNMENT THEME PROPONENTS SAY BUT OTHERS IN THE WHITE HOUSE INCLUDING THE OFFICE OF MANAGEMENT AND BUDGET HAVE QUESTIONED WHETHER PUTTING THE AIRTRAFFICCONTROL SYSTEM UNDER THE PARTIAL CONTROL OF AIRLINES WOULD SAVE THEM ENOUGH MONEY TO JUSTIFY THE CHANGE ADMINISTRATION OFFICIALS SAID WITHOUT STRONG ENDORSEMENT FROM PRESIDENT CLINTON IT'S UNLIKELY THAT CONGRESS WOULD EVEN TAKE UP THE QUESTION OF OVERHAULING THE FAA BECAUSE SIMILAR PROPOSALS HAVE DIED IN THE PAST EVEN LESS LIKELY TO FLY IS THE COMMISSION'S PROPOSAL TO ROLL BACK TICKET AND CARGO TAXES AND TO FREE MONEYLOSING AIRLINES FROM HAVING TO PAY AN ALTERNATIVE MINIMUM TAX PRESIDENT CLINTON HAS NO DESIRE TO TINKER WITH HIS HARDWON DEFICITREDUCTION PLAN AS INDICATED IN A STATEMENT PRAISING THE PANEL'S WORK YESTERDAY WE WILL WORK WITH CONGRESS TO RESPOND TO THE INDUSTRY'S PROBLEMS IN A MANNER CONSISTENT WITH OUR DEFICITREDUCTION AND ECONOMIC GOALS MR CLINTON SAID SEVERAL MEMBERS SAID YESTERDAY THE COMMISSION'S CALL FOR REGULATORY RELIEF WILL PROBABLY BE ENDORSED THE PANEL CALLED FOR THE FAA TO PUT AN ANNUAL CAP ON THE COSTS OF ITS REGULATIONS TO THE INDUSTRY AND FOR THE AGENCY TO LIMIT RANDOM DRUG AND ALCOHOL TESTING THAT AIRLINES HAVE TO PERFORM ON THEIR EMPLOYEES ON THE OTHER HAND THE COMMISSION IS ALSO CALLING FOR A NEW FINANCIAL ADVISORY COMMITTEE TO HELP THE TRANSPORTATION SECRETARY POLICE SICK AIRLINES MORE TIGHTLY THE NATIONAL COMMISSION TO ENSURE A STRONG COMPETITIVE AIRLINE INDUSTRY SET UP BY CONGRESS AND PRESIDENT CLINTON IN REACTION TO AIRLINEINDUSTRY LOSSES IS HEADED BY FORMER VIRGINIA GOV GERALD BALILES WHO IS CLOSE TO THE PRESIDENT MR BALILES WHO HAS ALREADY BEGUN DISCUSSIONS WITH THE WHITE HOUSE STAFF YESTERDAY SAID AIRLINES STILL NEED HELP DESPITE RECENT IMPROVEMENTS IN THEIR FINANCIAL RESULTS ECONOMIC RECOVERY BY ITSELF WILL NOT PROVIDE THE RELIEF THE INDUSTRY NEEDS RESTRUCTURING BY THE INDUSTRY ITSELF WILL NOT TAKE CARE OF THE PROBLEMS IN THE INDUSTRY HE SAID TO REINFORCE THAT POINT THE COMMISSION PRINTED THE 38PAGE REPORT ON GLOSSY PAPER WITH FULLCOLOR CHARTS ILLUSTRATING THE INDUSTRY'S WOES THE COMMISSION PRINTED 10000 COPIES THE REPORT'S 60 PROPOSALS INCLUDE TIGHTENING BANKRUPTCY PROCEDURES FOR AIRLINES ASKING THE PRESIDENT TO RELEASE OIL FROM THE STRATEGIC RESERVE WHEN JET FUEL PRICES RISE SHARPLY AND ALLOWING THE GOVERNMENT TO NEGOTIATE TRADE ACCORDS TO GIVE FOREIGN INVESTORS THE RIGHT TO HOLD UP TO A 49 VOTING STAKE IN A US AIRLINE IN EXCHANGE FOR FREER ACCESS TO FOREIGN MARKETS 9308200007 930820 MOVES BY PAGURIAN EDPER TO CONSOLIDATE BRONFMANS' EMPIRE TORONTO THE BRONFMAN CORPORATE EMPIRE TOOK ANOTHER STEP IN THE GRADUAL DISMANTLING OF THE GROUP'S LABYRINTHINE STRUCTURE EDPER INVESTMENTS LTD CLOSELY HELD BY THE FAMILY OF PETER BRONFMAN AND PAGURIAN CORP WHICH IS CONTROLLED BY EXECUTIVES WITHIN THE BRONFMAN EMPIRE PLAN TO ELIMINATE ONE OF THE KEY PRIVATE HOLDING COMPANIES THAT HAVE BEEN THE TARGET OF CRITICISM FROM ANALYSTS AND INVESTORS MANFRED WALT PAGURIAN'S PRESIDENT SAID THE MOVE IS A FURTHER STEP TOWARD CONSOLIDATING THE VARIOUS PUBLIC AND CLOSELY HELD HOLDING COMPANIES WITHIN THE BRONFMAN GROUP INTO A SINGLE PUBLICLY TRADED ENTITY THE PROCESS IS EXPECTED TO TAKE THREE TO FIVE YEARS TO COMPLETE THE AGREEMENT BETWEEN EDPER INVESTMENTS AND PAGURIAN ELIMINATES RECIPROCAL OBLIGATIONS TO FINANCE ADDITIONAL PURCHASES OF STOCK OF EDPER HOLDINGS INC CLEARING THE WAY FOR THE EVENTUAL MERGER OF THE UNIT WITH OTHER HOLDING COMPANIES IN THE GROUP EDPER INVESTMENTS OWNS JUST OVER 50 OF EDPER HOLDINGS WITH THE BALANCE HELD BY PAGURIAN AS PART OF THE AGREEMENT THE BRONFMAN FAMILY'S EDPER INVESTMENTS WILL RELINQUISH 372 MILLION CANADIAN DOLLARS US2814 MILLION OF JUNIOR PREFERRED SHARES IN EDPER HOLDINGS THE FAMILY ALSO WILL RECEIVE C14 MILLION IN CASH FROM EDPER HOLDINGS FOR AN EQUAL AMOUNT OF SENIOR PREFERRED SHARES IN EDPER ENTERPRISES LTD A SUBSIDIARY OF EDPER HOLDINGS ALAIN TUCHMAIER AN ANALYST AT MCLEAN MCCARTHY LTD IN TORONTO SAID THE BRONFMAN FAMILY APPEARS TO HAVE RECOGNIZED THAT ITS JUNIOR PREFERRED SHARES NO LONGER HAVE ANY VALUE BECAUSE OF THE FALLOUT FROM THE GROUP'S TROUBLED INVESTMENTS IN COMMERCIAL REAL ESTATE AND FINANCIAL SERVICES 9308200006 930820 COMMODITIES SOYBEAN PRICES CLIMB AS FORECASTING COMPANY IS RUMORED TO HAVE CUT ESTIMATE ON CROP SIZE BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO RUMORS THAT A MAJOR CROPFORECASTING COMPANY HAD REDUCED ITS ESTIMATE OF THIS YEAR'S SOYBEAN CROP DROVE SOYBEAN FUTURES PRICES HIGHER AT THE CHICAGO BOARD OF TRADE SOYBEANS FOR NOVEMBER DELIVERY ROSE 650 CENTS TO 663 A BUSHEL MEANWHILE THE ACTIVELY TRADED DECEMBER CORN CONTRACT ROSE 125 CENTS TO 24325 A BUSHEL IN THE LATEST AUG 11 ESTIMATE OF THIS YEAR'S FLOODDAMAGED CROP THE US AGRICULTURE DEPARTMENT PROJECTED SOYBEAN PRODUCTION OF 1902 BILLION BUSHELS IN THAT REPORT THE USDA ESTIMATED THE US CORN CROP AT 7423 BILLION BUSHELS YESTERDAY SPARKS COS MEMPHIS TENN WHOSE ESTIMATES OF CROP SIZE ARE WIDELY FOLLOWED IN THE MARKET WAS RUMORED TO HAVE REDUCED ITS OWN ESTIMATE OF THE SOYBEAN CROP TO 1874 BILLION BUSHELS ANALYSTS SAID THIS WAS INTERPRETED BY SOME TRADERS AS ANOTHER INDICATION OF FROST ANXIETY NOW UNDERPINNING THE MARKET GRAIN PRICES HAVE TRICKLED LOWER SINCE LATE JULY WHEN DRENCHING RAINS ACROSS THE CORN BELT FINALLY TAPERED OFF YET THE MARKET NOW IS DRAWING STRENGTH FROM FEARS ABOUT THE POTENTIAL FOR DAMAGE TO THE CROP FROM EARLY FROST THE HEAVY RAINS OF SPRING AND EARLY SUMMER HAVE STUNTED DEVELOPMENT OF YOUNG SOYBEAN PLANTS ESPECIALLY IN THE WESTERN CORN BELT THE SLOW DEVELOPMENT OF PLANTS IN THESE RAINDELUGED AREAS COULD MAKE CROPS THERE PARTICULARLY VULNERABLE TO FROST THE BIG FEAR IS THE IMMATURITY OF THE CROP IN THE WESTERN CORN BELT AND THE POSSIBILITY OF A FROST OR AN EARLY FROST SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO SO THE MARKET IS RELUCTANT TO GO A LOT LOWER IN THE HEART OF THE CORN BELTSTATES SUCH AS IOWA ILLINOIS AND INDIANANORMAL DATES FOR THE FIRST FROST OF FALL ARE OCT 10 TO OCT 15 FORECASTS OF COLD ARCTIC AIR MOVING INTO THE MIDWEST BEFORE THEN COULD DRIVE FUTURES PRICES HIGHER PERHAPS BACK ABOVE THE 7ABUSHEL LEVEL ANALYSTS SAY CONTINUING TO LEND STRENGTH TO THE CBOT'S WHEAT FUTURES MARKET YESTERDAY WERE CONCERNS ABOUT AN OUTBREAK OF VOMITOXIN A MOLD THAT INFESTS WHEAT PLANTS PRODUCED BY A FUNGUS THAT FLOURISHES IN UNUSUALLY WET AND COOL WEATHER VOMITOXIN HAS BEEN FOUND IN WHEAT FIELDS IN THE NORTHERN CORN BELT AT THE CBOT YESTERDAY WHEAT FOR DECEMBER DELIVERY CLIMBED TWO CENTS TO 31775 A BUSHEL IN OTHER COMMODITY MARKETS YESTERDAY ENERGY PETROLEUM FUTURES WERE MIXED ON LITTLE NEWS THE SEPTEMBER CRUDE CONTRACT REMAINED UNDER PRESSURE BECAUSE OF TODAY'S EXPIRATION ON THE NEW YORK MERCANTILE EXCHANGE IT SETTLED ONE CENT A BARREL LOWER AT 1765 BUT OCTOBER CRUDE WAS UP TWO CENTS A BARREL TO 1815 MEANWHILE WIDESPREAD BEARISH SENTIMENT IN THE GASOLINE MARKET CONTINUED TO PUSH DOWN MOTOR FUEL PRICES THE FUTURES PRICE OF UNLEADED GASOLINE FOR SEPTEMBER DELIVERY DROPPED 058 CENT TO SETTLE AT 5352 CENTS A GALLON PRECIOUS METALS GOLD FUTURES PRICES RETREATED IN CHOPPY TRADING IN NEW YORK TRADERS SAID ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR DECEMBER DELIVERY FELL BACK 310 TO SETTLE AT 37440 AN OUNCE GOLD'S VALUE AS AN INFLATION HEDGE IS LOSING ITS LUSTER IN THE CURRENT NONINFLATIONARY ENVIRONMENT ANALYSTS SAID INFLATION POSES NO THREAT TO THE ECONOMY OR TO STOCK PRICES SAID BERNARD SAVAIKO AN ANALYST WITH PAINEWEBBER IN NEW YORK AFTER THE BIG CRACK IN THE MARKET EARLIER THIS MONTH GOLD HAS NEVER REALLY REGAINED ITS POISE HE ADDED GOLD PRODUCERS HAVE BEEN SELLING BULLION FORWARD AT PRICES OF 376 AN OUNCE AND ABOVE MR SAVAIKO SAID BECAUSE OF A LACK OF CONFIDENCE IN FURTHER PRICE APPRECIATION SILVER PRICES ALSO ENDED WEAKER ON THE COMEX SILVER FOR DECEMBER DELIVERY SHED 52 CENTS TO 4703 AN OUNCE 9308200005 930820 BUSINESS BRIEF HORMEL FOODS CORP THIRDQUARTER PROFIT ROSE TO HIGH ON 1 SALES INCREASE HORMEL FOODS CORP SAID FISCAL THIRDQUARTER EARNINGS ROSE 19 TO A RECORD 191 MILLION OR 25 CENTS A SHARE FROM 161 MILLION OR 21 CENTS A SHARE A YEAR EARLIER SALES ROSE ALMOST 1 TO 6778 MILLION FROM 6712 MILLION THE AUSTIN MINN PROCESSOR OF MEAT AND FOOD PRODUCTS SAID THE RECORD PROFIT WAS DUE TO OUTSTANDING PERFORMANCES BY ITS KEY MARKETING GROUPS HORMEL SAID ITS PREPARED FOODS MEAT PRODUCTS AND FOODSERVICE GROUP ENDED THE QUARTER WITH SUBSTANTIALLY IMPROVED RESULTS IN THE FIRST NINE MONTHS PROFIT ROSE 13 TO 60 MILLION OR 78 CENTS A SHARE FROM 532 MILLION OR 69 CENTS A SHARE SALES ROSE 4 TO 204 BILLION FROM 197 BILLION 9308200004 930820 LAW LEGAL BEAT LAWYERS BOOST COURTROOM USE OF TECHNOLOGY BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL DURING CLOSING ARGUMENTS IN THE RECENT PREDATORY PRICING CASE AGAINST AMR CORP'S AMERICAN AIRLINES ATTORNEY FINIS COWAN TRIED TO CONVINCE JURORS TO TRUST THE COMPANY'S EMPLOYEES WHO TESTIFIED AT TRIAL AND JUST TO MAKE SURE JURORS REMEMBERED WHO HE WAS TALKING ABOUT HE POPPED PICTURES OF EACH WITNESS ON A 67INCH TELEVISION SCREEN THE FIVEWEEK ANTITRUST CASE FILED BY CONTINENTAL AIRLINES AND WINGS HOLDINGS INC'S NORTHWEST AIRLINES UNIT AGAINST AMERICAN DIDN'T PRODUCE A STARTLING VERDICTJURORS TOOK LESS THAN THREE HOURS TO DECIDE THAT AMERICAN HAD NOT UNFAIRLY SLASHED ITS PRICES BUT THE TRIAL DID TURN INTO AN IMPRESSIVE SHOW OF HOW TECHNOLOGY CAN BE USED IN THE COURTROOM LAWYERS HAVE BEEN MAKING TENTATIVE STABS AT USING COMPUTERS AND VIDEO MONITORS IN TRIALS FOR SEVERAL YEARS COMPUTERIZED GRAPHICS WERE USED IN THE TRIAL OF A FALSE ADVERTISING DISPUTE BETWEEN RALSTON PURINA AND ALPO PETFOODS INC IN 1989 AND THE PUBLIC GOT A GLIMPSE OF WHAT TECHNOLOGY CAN MEAN IN A CRIMINAL TRIAL WHEN THE DEFENSE TEAM IN THE RODNEY KING BEATING CASE BROKE THE NOWFAMOUS VIDEO INTO FRAMEBYFRAME SNIPPETS LAWYERS HAVE ALSO USED COMPUTERS TO RECREATE PLANE CRASHES HIGHWAY ACCIDENTS AND EVEN MURDERS AT THE ANTITRUST TRIAL LAST WEEK AMERICAN USED TECHNOLOGY FOR A WIDE VARIETY OF TASKS THE COMPANY'S LAWYERS HAULED A 20000 BARCO BIGSCREEN TELEVISION INTO THE 1930SERA VINTAGE COURTROOM IN GALVESTON TEXAS AND PLUGGED IT INTO A COMPUTER TERMINAL ATTORNEYS THUS WERE ABLE TO DISPLAY FOR THE JURY PORTIONS OF DOCUMENTS VIDEOTAPED DEPOSITIONS AND CHARTS AND GRAPHS WITH THE FLICK OF A LIGHT WAND A PENSIZED INSTRUMENT THAT READ BAR CODES ASSIGNED TO EACH OF THE THOUSANDS OF EXHIBITS INTRODUCED DURING THE TRIAL THE TAB FOR THIS COURTROOM WEAPONRY RAN TO ROUGHLY 50000 ROBERT COOPER ANOTHER OF AMERICAN'S LAWYERS SAID HE HAD NO WORRIES THAT JURORS WOULD LOOK ASKANCE AT THE COMPANY'S DISPLAY OF EXPENSIVE FIREPOWER MY OWN VIEW IS THAT JURORS EXPECT YOU TO DO THIS HE SAID THIS IS LITERALLY THE SAME AS THE NEWS PEOPLE WATCH EVERY NIGHT A HANDFUL OF BIG FIRMS HAVE MOVED TO CAPITALIZE ON THE GROWING DEMAND FOR SUCH LEGAL TECHNOLOGY THE BIGGEST OF WHICH ARE LITIGATION SCIENCES OF CULVER CITY CALIF AND DECISIONQUEST OF LOS ANGELES ABOUT 20 OR SO SMALLER FIRMS PROVIDE SIMILAR SERVICES OLDER ATTORNEYS FOR THE MOST PART DID NOT GROW UP WITH TELEVISION AND THEY TRIED TRIALS WHEN THEY WERE YOUNGER WITHOUT MUCH VISUAL SUPPORT MATERIAL SO THEY HAVE BEEN MORE RELUCTANT TO GET INTO THIS SAYS ROBERT SELTZER WHO IS THE EXECUTIVE DIRECTOR OF LITIGATION SCIENCES' LEGAL GRAPHICS DIVISION THE YOUNGER ONES WHO ARE MORE FAMILIAR WITH THE TECHNOLOGY ARE THE MOST RECEPTIVE BUT THE WHIZBANG DRAMA THAT COMPUTER EQUIPMENT BRINGS INTO A COURTROOM IS ONLY A PART OF WHAT THE TECHNOLOGY CAN DO ITS REAL STRENGTH IS IN INFORMATION MANAGEMENT USING COMPUTER TECHNOLOGY TO GET A HANDLE ON A COMPLICATED CASE WITH THOUSANDS OF DOCUMENTS THROUGH CROSSREFERENCING AND KEYWORD SEARCHES IT'S A FAR CRY FROM THE DAYS WHEN LAWYERS RENTED WAREHOUSES TO STORE LITIGATION MATERIAL AND SPENT HOURS ROOTING THROUGH BOXES TO FIND THE DOCUMENT THEY WERE LOOKING FOR TODAY SAYS MRSELTZER YOU CAN PUT UP TO 20000 DOCUMENTS ON A CDROM WHILE NOT CHEAP THE COST OF SUCH TECHNOLOGY CAN SAVE CLIENTS MONEY IN ATTORNEY TIME SAYS MOLLY GEORGE MARKETING DIRECTOR OF QUORUM LITIGATION SERVICES INC IN MINNEAPOLIS AS MORE INHOUSE COUNSEL TRY TO CUT COSTS HER FIRM IS BENEFITING BECAUSE LAW FIRMS AND THEIR CLIENTS ARE NOW CONTRACTING OUT A LOT OF THE WORK THEY ONCE DID THEMSELVES SHE ADDS NOT ALL LAWYERS ARE SO QUICK TO TURN TO COMPUTERS IN THE COURTROOM HOWEVER CONTINENTAL AND NORTHWEST FOR EXAMPLE RELIED ON TECHNOLOGY ONLY TO PLAY VIDEOTAPED DEPOSITIONS FOR JURORS ONE OF THE PLAINTIFFS' ATTORNEYS SAYS THE TWO AIRLINES COULDN'T AS EASILY MAKE THE POINT THAT THEY WERE FINANCIALLY HARMED BY AMERICAN'S ALLEGEDLY IMPROPER FARECUTTING IF THEY WERE HAULING OUT EXPENSIVE TECHNOLOGY BUT IT WASN'T JUST IMAGE THAT KEPT THE PLAINTIFFS FROM USING THE BIGSCREEN TV CONTINENTAL LAWYER MARY BOIES SAID IT WAS FAR EASIER TO SHOW DOCUMENTS BY HAVING TRANSPARENCIES MADE AND PUTTING THEM ON THE OVERHEAD PROJECTOR EVEN MR COOPER ONE OF AMERICAN'S LAWYERS ACKNOWLEDGES THE TECHNOLOGY'S LIMITATIONS I HAVE NOT YET BEEN SATISFIED WITH THE RESOLUTION FOR DOCUMENTS HE SAID THAT'S LIKELY TO CHANGE SAYS LITIGATION SERVICES' MR SELTZER AS TECHNOLOGICAL ADVANCES IMPROVE THE PICTURES COMPUTERS CAN GENERATE HE SAYS THAT WITHIN A YEAR ATTORNEYS WILL BE ABLE TO USE COMPUTERS TO ZOOM IN ON PART OF A DOCUMENT AND EVEN HIGHLIGHT IT IN DIFFERENT COLORS AND COURTROOM TECHNOLOGY IS EXPECTED TO BECOME CHEAPER TO USE AND MORE READILY AVAILABLE ALREADY SOME NEW COURTROOMS ARE BEING PREWIRED TO ACCOMMODATE TELEVISION MONITORS AND COMPUTERS I THINK EVENTUALLY WE'LL FIND THAT COURTROOMS WILL BECOME EQUIPPED WITH COMPUTERS AND TELEVISION MONITORS STATIONED IN THE COURTROOM MR SELTZER SAYS ALL AN ATTORNEY HAS TO DO IS COME INTO THE COURTROOM READY FOR TRIAL WITH A CDROM THE SUPREME COURT IS FUMING AGAIN OVER PUBLICITY OF ITS ACTIVITIES BUT THIS TIME THE ACTIVITIES WERE PUBLIC IN THE FIRST PLACE THE LATEST SPAT CONCERNS THE MARKETING OF AUDIO TAPES OF FAMOUS ORAL ARGUMENTS AT THE HIGH COURT INCLUDING THOSE IN THE 1973 ROE VS WADE ABORTIONRIGHTS CASE AND THE 1974 CASE OVER THE RELEASE OF THE WATERGATE TAPES IN A FIRSTOFITS KIND EFFORT A UNIVERSITY OF CALIFORNIA POLITICAL SCIENTIST PETER IRONS IS PLANNING TO SELL EDITED TAPES AND TRANSCRIPTS OF THESE AND OTHER LANDMARK DISPUTES ORAL ARGUMENTS ARE OPEN TO THE PUBLIC STILL THE HIGH COURT HAS THREATENED PROF IRONS WITH UNSPECIFIED LEGAL ACTION IF HE PROCEEDS IN A SEPARATE DISPUTE THIS YEAR EIGHT OF THE NINE JUSTICES CONDEMNED THE LIBRARY OF CONGRESS FOR RELEASING THE PERSONAL PAPERS OF THE LATE JUSTICE THURGOOD MARSHALL ALTHOUGH JUSTICE MARSHALL HAD AGREED TO SUCH A RELEASE UPON HIS DEATH MOST OF HIS FORMER COLLEAGUES ACCUSED THE LIBRARY OF VIOLATING THE COURT'S MUCHPRIZED CONFIDENTIALITY THE IRONS AFFAIR HAS ITS ORIGINS IN THE COURT'S OWN PRACTICE OF TAPING ITS ORAL ARGUMENTS THE TAPES ARE AVAILABLE TO RESEARCHERS AT THE NATIONAL ARCHIVES TO COPY THEM RESEARCHERS MUST SIGN AN AGREEMENT SAYING THEY WILL BE USED ONLY FOR RESEARCH AND TEACHING PURPOSES AND THAT THE RESEARCHERS WON'T REPRODUCE THEM PROF IRONS SIGNED THE AGREEMENT BUT WENT AHEAD WITH HIS PROJECT TO REPRODUCE AND MARKET TAPES OF FAMOUS CASES UNDER THE TITLE MAY IT PLEASE THE COURT THE TRADITIONAL OPENING FOR ORAL ARGUMENTS HE SAID IN AN INTERVIEW THAT THE AGREEMENT WAS A LEGALLY UNENFORCEABLE RESTRAINT ON EXPRESSION AND THEREFORE DIDN'T HAVE TO BE OBEYED THE PROJECT CAN ONLY HELP PEOPLE UNDERSTAND HOW THE COURT OPERATES HE ADDED WHAT IS THE COURT AFRAID OF THE SUPREME COURT OR AT LEAST CHIEF JUSTICE WILLIAM REHNQUIST HAS SAID THAT THE AGREEMENT WAS VALID IN LIGHT OF THIS CLEAR VIOLATION OF PROF IRONS'S CONTRACTUAL COMMITMENTS THE COURT'S PUBLIC INFORMATION OFFICE SAID IN A PRESS RELEASE THIS MONTH THE COURT IS CONSIDERING WHAT LEGAL REMEDIES MAY BE APPROPRIATE TONI HOUSE THE COURT'S SPOKESWOMAN WOULDN'T ELABORATE ONE STEP THAT COULD BE TAKEN AGAINST PROF IRONS IS A BREACHOFCONTRACT SUIT WHICH THE ATTORNEY GENERAL COULD FILE ON BEHALF OF THE FEDERAL GOVERNMENT THE COURT IS NOW IN RECESS AND THE JUSTICES AREN'T EXPECTED TO GATHER AGAIN IN WASHINGTON UNTIL LATE SEPTEMBER WHEN THEY BEGIN PREPARATIONS FOR THE NEW TERM BEGINNING OCT 4 WHO'S NEWS ANDREW B ROTH HAS JOINED THE 70ATTORNEY HEALTH LAW DEPARTMENT OF MCDERMOTT WILL & EMERY AS A PARTNER MR ROTH WHO REPRESENTS HOSPITALS AND HANDLES ISSUES INVOLVING RESIDENCY TRAINING PROGRAMS WILL WORK IN THE CHICAGO LAW FIRM'S NEW YORK OFFICE HE PREVIOUSLY WAS A PARTNER IN THE GARDEN CITY NY OFFICE OF NIXON HARGRAVE DEVANS & DOYLE A ROCHESTER NY LAW FIRM PAUL M BARRETT CONTRIBUTED TO THIS ARTICLE 9308200003 930820 INTERNATIONAL EUROPE'S BCCI PROBES AWAIT COURT TESTS TRIALS ARE READIED AS US EFFORT APPEARS FINISHED BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL EUROPEAN INVESTIGATORS LOOKING INTO THE SCANDAL SURROUNDING BANK OF CREDIT & COMMERCE INTERNATIONAL STILL HAVE MOST OF THEIR COURT WORK AHEAD OF THEM EVEN AS THE MAIN US GOVERNMENT PROBE OF THE ROGUE BANK APPEARS TO HAVE LARGELY RUN ITS COURSE BRITAIN'S SERIOUS FRAUD OFFICE IS SET TO BRING ITS FIRST BCCIRELATED CASE TO COURT AT THE BEGINNING OF SEPTEMBER WHEN THE LONDON TRIAL OF BUSINESSMAN NAZMU VIRANI GETS UNDER WAY MR VIRANI FORMER CHAIRMAN OF BRITISH PROPERTY AND LEISURE GROUP CONTROL SECURITIES IS CHARGED WITH SIGNING FALSE AUDIT CONFIRMATIONS THAT ALLEGEDLY ALLOWED BCCI TO FALSIFY LOANS BCCI USED FALSE LOANS TO PAD ITS BALANCE SHEET AS IT PILLAGED ITS DEPOSITORS' FUNDS MR VIRANI CURRENTLY ON BAIL WAS FOR YEARS A BIG DONOR TO BRITAIN'S MAJOR POLITICAL PARTIES CONTROL SECURITIES HAD BEEN ONE OF BCCI'S BIGGEST BORROWERS AND DEPOSITORS BEFORE THE BANK WAS CLOSED THE SLOWER PROGRESS IN INVESTIGATING THE BCCI AFFAIR IN EUROPE IS ALL THE MORE REMARKABLE BECAUSE BCCI'S PARENT COMPANY BCCI HOLDINGS LUXEMBOURG SA WAS BASED IN THE HEART OF THE CONTINENT IN LUXEMBOURG WHILE THE BANK'S HEAD OFFICE WAS IN LONDON EUROPE'S MAJOR INTERNATIONAL BANKING CENTER LIQUIDATORS FOR BCCI ESTIMATE THAT 12 BILLION OF DEPOSITORS' MONEY IS MISSING MUCH OF IT IN EUROPE IT'S NOW TWO YEARS AND ONE MONTH AFTER THE CLOSURE OF BCCI AND NOBODY HAS BEEN CONVICTED OF THIS FRAUD SAID A BRITISH MEMBER OF PARLIAMENT KEITH VAZ REFERRING TO THE COORDINATED JULY 1991 CLOSURE OF THE BANK BY REGULATORS IN A NUMBER OF COUNTRIES MR VAZ SAID IT WAS INCREDIBLE THAT THERE HAVE BEEN NO CONVICTIONS IN THE UK GIVEN THE SCALE OF THIS MASSIVE CRIME HE HAS LED UK LEGISLATIVE ATTEMPTS TO PUT THE SPOTLIGHT ON THE BCCI ISSUE MANY OF THE 40000 BRITISH DEPOSITORS WHO LOST MONEY IN BCCI LIVE IN THE LEICESTER CONSTITUENCY MR VAZ REPRESENTS IN ADDITION TO ITS PENDING ACTION AGAINST MR VIRANI BRITAIN'S SERIOUS FRAUD OFFICE HAS ALSO BROUGHT CHARGES AGAINST TWO OFFICIALS WHO WORKED WITH BCCI IMRAN IMAM A CLERK AT THE BANK'S HEADQUARTERS WHO BRITISH AUTHORITIES ALLEGE CONSPIRED TO COMMIT FRAUD BY FALSIFYING RECORDS AND CONCEALING 105 MILLION OF LOAN GUARANTEES AND MOHAMMED BAQI A FORMER MANAGING DIRECTOR OF ATTOCK OIL A PAKISTANI ENERGY COMPANY CONTROLLED BY BCCI MR BAQI WHOSE CASE IS SET TO GO TO TRIAL IN LONDON NEXT JANUARY IS CHARGED WITH SIGNING ALLEGEDLY FALSE LOAN DOCUMENTATION THE BRITISH AUTHORITIES ALSO RECENTLY TOOK INTO CUSTODY SYED ZIAUDDIN ALI AKBAR WHO HEADED BCCI'S TREASURY DIVISION FOR FOUR YEARS UNTIL 1986 WHEN HE LEFT TO RUN CAPCOM FINANCIAL SERVICES LTD A COMMODITY INVESTMENT FIRM LINKED TO BCCI BUT THE MAIN PROBLEM HAMPERING EUROPEAN AND AMERICAN EFFORTS TO PURSUE THE ALLEGED PERPETRATORS OF THE BCCI SCANDAL IS THAT THEY ARE LARGELY BEYOND THE REACH OF PROSECUTORS MOST ARE EITHER IN PAKISTAN OR IN THE SHEIKHDOM OF ABU DHABI BCCI'S FOUNDER AGHA HASAN ABEDI FOR EXAMPLE IS IN KARACHI PAKISTAN BOTH THE US AND UK GOVERNMENTS ALSO HAVE BEEN UNWILLING TO PUT SUFFICIENT PRESSURE ON ABU DHABI TO GET IT TO PROVIDE ACCESS TO OTHER CRUCIAL WITNESSES SUCH AS FORMER BCCI CHIEF EXECUTIVE SWALEH NAQVI MR NAQVI HAS BEEN UNDER HOUSE ARREST IN ABU DHABI SINCE THE LATE SUMMER OF 1991 THE MAIN US PROBE OF THE BCCI AFFAIR CONDUCTED IN NEW YORK CITY BY MANHATTAN DISTRICT ATTORNEY ROBERT MORGENTHAU SUFFERED A SIGNIFICANT SETBACK LAST WEEK WHEN ITS CASE AGAINST WASHINGTON DC LAWYER ROBERT ALTMAN COLLAPSED MR ALTMAN WAS ACQUITTED OF NEW YORK STATE CRIMINAL CHARGES THAT HE HELPED BCCI SECRETLY GAIN CONTROL OF FIRST AMERICAN BANKSHARES INC OF WASHINGTON AND THAT HE MADE FALSE FILINGS WITH REGULATORS ON BEHALF OF BCCI MR ALTMAN HAD FOR YEARS SERVED AS A LAWYER FOR BCCI AND WAS PRESIDENT OF A FIRST AMERICAN UNIT MR MORGENTHAU'S OFFICE HAS BEEN INVESTIGATING BCCI SINCE 1989 AND MANY IN EUROPE INCLUDING MR VAZ CREDIT THIS AMERICAN PROBE IN PARTICULAR WITH PUSHING EUROPEAN INSTITUTIONS INTO THE ACTIONS THAT THEY HAVE TAKEN I DON'T THINK IT WOULD HAVE BEEN CLOSED BUT FOR THE AMERICANS MR VAZ SAID OF THE BANK OF ENGLAND'S JULY 5 1991 SHUTDOWN OF THE BANK THE NEW YORK INVESTIGATION IN TANDEM WITH ANOTHER STARTED BY THE US JUSTICE DEPARTMENT IN WASHINGTON REACHED A JANUARY 1992 SETTLEMENT WITH BCCI'S LIQUIDATORS WHO AGREED TO PAY 550 MILLION OF FINES FOR THE BANK'S TRANSGRESSIONS IN THE US IN ADDITION SHEIK KAMAL ADHAM A MAJOR BCCI SHAREHOLDER IN JULY 1992 PLEADED GUILTY TO A US CHARGE OF BANK FRAUD AND AGREED TO PAY 105 MILLION IN FINES IN EUROPE THOUGH THE COURT HEARINGS ARE STILL TO COME FOR THE MOMENT THE MAIN FOCUS IS A LUXEMBOURG COURT HEARING CURRENTLY ADJOURNED UNTIL THE END OF OCTOBER AT THAT TIME A PANEL OF THREE LOCAL JUDGES IS EXPECTED TO RULE ON A PROPOSED LIQUIDATION PLAN FOR BCCI THE PLAN PUT TOGETHER BY BRIAN SMOUHA OF TOUCHE ROSS & CO BCCI'S COURTAPPOINTED LIQUIDATOR WOULD GIVE DEPOSITORS LIMITED COMPENSATION THAT MIGHT TOTAL AS MUCH AS 30 CENTS FOR EACH 1 OF LOST DEPOSITS THE GOVERNMENT OF ABU DHABI THE FORMER MAJORITY OWNER OF BCCI IS CHIPPING IN MONEY IN RETURN FOR LEGAL IMMUNITY AND A POTENTIAL CLAIM ON MONEY RECOVERED SUBMISSIONS TO THE COURT HAVE CRITICIZED THE PLAN ESPECIALLY BECAUSE IT CASTS THE GOVERNMENT OF SHEIK ZAYED OF ABU DHABI IN THE ROLE OF COLIQUIDATOR THE LOCAL BANK REGULATOR THE INSTITUT MONETAIRE LUXEMBOURGEOIS FILED A BRIEF QUESTIONING THE CONDUCT OF A SENIOR MEMBER OF SHEIK ZAYED'S COURT RAISING THE ISSUE OF HIS KNOWLEDGE OF ALLEGED FRAUDS AT BCCI A GROUP OF INVESTORS WITH SUBSTANTIAL DEPOSITS AT BCCI ALSO HAS FILED WITH THE LUXEMBOURG COURT IN AN EFFORT TO BLOCK THE SETTLEMENT ALTOGETHER THERE ARE OTHER PENDING LEGAL ACTIONS IN EUROPE THE BCCI LIQUIDATORS TOUCHE ROSS HAVE FILED SUIT AGAINST THE BANK OF ENGLAND ALLEGING THAT IT WAS NEGLIGENT IN ITS SUPERVISION OF BCCI THE BANK OF ENGLAND DENIES THIS AND HAS SAID IT WILL FIGHT THE CASE IN COURT THE LIQUIDATORS ALSO HAVE FILED SUIT IN LONDON AGAINST PRICE WATERHOUSE THE ACCOUNTING FIRM THAT AUDITED BCCI ALLEGING NEGLIGENCE PRICE WATERHOUSE HAS ALSO DENIED THESE ALLEGATIONS AND HAS INDICATED IT WILL CONTEST THEM THE HIGH COURT IN BRITAIN IN JULY TURNED DOWN AN ATTEMPT BY PRICE WATERHOUSE TO PUT OFF A JUDICIAL REVIEW OF ITS AUDITING OF BCCI PRICE WATERHOUSE HAS SAID IT IS CONSIDERING APPEALING THAT DECISION PRICE WATERHOUSE STRESSES ITS OWN ROLE IN UNCOVERING FRAUD AT BCCI AND ALSO CONTENDS IT IS UNFAIR THAT SUCH AN INQUIRY SHOULD BE HELD WHILE IT STILL FACES LEGAL ACTION OVER BCCI 9308200002 930820 THURSDAY'S MARKETS YIELD OF 620 IS ANOTHER LOW FOR LONG BOND BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE AWESOME RALLY IN LONGTERM BOND PRICES ROLLED ON SENDING INTEREST RATES PLUNGING TO ANOTHER 16YEAR LOW STOCK PRICES WERE MIXED BUT BOTH THE DOW JONES INDUSTRIAL AVERAGE AND STANDARD & POOR'S 500STOCK INDEX EDGED UP TO NEW RECORDS THE INDUSTRIAL AVERAGE GAINED 727 POINTS TO 361213 ITS THIRDCONSECUTIVE RECORD STANDARD & POOR'S 500STOCK INDEX INCHED UP 039 TO 45643 JUST BEATING ITS PREVIOUS HIGH OF 45633 THE NASDAQ COMPOSITE INDEX FELL 435 TO 73048 LONGTERM BOND PRICES RESPONDED STRONGLY TO FURTHER EVIDENCE OF A SLUGGISH ECONOMY THE COMMERCE DEPARTMENT REPORTED THAT THE MERCHANDISE TRADE DEFICIT WIDENED IN JUNE FAR MORE THAN EXPECTED TO THE LARGEST LEVEL IN MORE THAN FIVE YEARS PRICES OF NOTES AND BONDS ALSO WERE STRONGER BUT THE TREASURY'S BENCHMARK 30YEAR ISSUE CONTINUES TO PERFORM IN A REALM ALL ITS OWN ANALYSTS POINTED TO VARIOUS TECHNICAL REASONS FOR THE RALLY NOT THE LEAST OF WHICH IS THE TREASURY'S PLAN TO MOVE TO SEMIANNUAL AUCTIONS OF 30YEAR BONDS FROM QUARTERLY SALES STOCK PRICES MEANDERED MOST OF THE DAY AFTER FEVERISH TRADING WEDNESDAY DROVE SOME MAJOR INDEXES TO RECORDS CONSUMER STOCKS WERE AGAIN AMONG THE STRONGEST PERFORMERS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 177 TO 11100 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2899 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 983 ISSUES ROSE AND 979 FELL BOND PRICES SOARED THE TREASURY'S 30YEAR ISSUE GAINED NEARLY 3/4 POINT OR 750 FOR EACH 1000 FACE AMOUNT TO YIELD 620 9308200001 930820 CARVEL FOUNDATION IS NAMED IN LAWSUIT BY NEW YORK STATE NEW YORK NEW YORK STATE HAS CHARGED THE THOMAS AND AGNES CARVEL FOUNDATION WITH THE ILLEGAL TRANSFER OF STOCK AND IMPROPER USE OF FOUNDATION FUNDS THE CIVIL SUIT FILED YESTERDAY IN A NEW YORK STATE COURT CHARGES MILDRED ARCADIPANE CARVEL FOUNDATION VICE PRESIDENT AND ROBERT DAVIS PRESIDENT WITH TRANSFERRING 115200 SHARES OF CARVEL CORP STOCK FROM THE FOUNDATION TO MS ARCADIPANE AND OTHER CARVEL EMPLOYEES IN ANTICIPATION OF A TAKEOVER BY ANOTHER COMPANY THE GROUP REALIZED 5 MILLION IN PROFITS LESS THAN A YEAR LATER THE STATE SAID WHEN CARVEL AN ICE CREAM COMPANY WAS ACQUIRED FOR 90 A SHARE MORE THAN 500000 IN FOUNDATION ASSETS ALSO ALLEGEDLY WAS USED FOR PERSONAL GAIN SUCH AS TUITION PAYMENTS FOR PRIVATE SCHOOL AND LEGAL FEES INCURRED IN THE PROCESS OF THE STATE'S INVESTIGATION THE STATE SAID ADDING THAT THE BEHAVIOR COST THE FOUNDATION AT LEAST 1 MILLION THE SUIT SEEKS TO RECOVER ALL FUNDS THAT HAVE BEEN OR WILL BE LOST AS A RESULT OF THE TRANSACTIONS A FOUNDATION SPOKESMAN DENIED ANY WRONGDOING SAYING THE TRANSACTIONS TOOK PLACE UNDER THE DIRECTION OF FOUNDATION FOUNDER THOMAS CARVEL PRIOR TO HIS DEATH IN 1990 THE STOCK TRANSFERRALS WERE DESIGNED TO COMPLY WITH TAXLAW REQUIREMENTS HE ADDED SCOTT MOLLEN AN ATTORNEY REPRESENTING MS ARCADIPANE SAID THE ATTORNEY GENERAL'S CHARITIES BUREAU WHICH INVESTIGATED THE CASE WAS SPURRED BY DISGRUNTLED CARVEL FAMILY MEMBERS TO ESTABLISH THE SUIT AND FORCE RESIGNATIONS AND CHANGES WITHIN THE POWER STRUCTURE OF THE FOUNDATION'S BOARD THE FOUNDATION WHICH HAS ASSETS VALUED AT 17 MILLION GRANTED 822000 FOR MEDICAL RELIGIOUS AND CULTURAL PURPOSES IN 1992 ACCORDING TO A REPORT FILED WITH THE ATTORNEY GENERAL'S OFFICE 9308200154 930726 DOUBLETHINK AT THE UNIVERSITY OF PENNSYLVANIA FOLLOWING ARE EXCERPTS FROM THE REPORT OF A PANEL OF UNIVERSITY OF PENNSYLVANIA ADMINISTRATORS APPOINTED TO STUDY THE THEFT OF ONE ENTIRE PRESS RUN OF THE STUDENT NEWSPAPER THE PAPERS WERE SEIZED ALL OVER CAMPUS BY BLACK ACTIVIST STUDENTS OPPOSED TO THE DAILY PENNSYLVANIAN'S EDITORIAL CONTENT THE REPORT WHICH CRITICIZES SECURITY GUARDS ABSOLVES THE STUDENTS OF ANY WRONGDOING EXCEPT FAILURE TO SHOW ID CARDS THE PANEL ANALYZED WHAT SUPPOSEDLY TRANSPIRED AT EACH OF THE CAMPUS SITES INVOLVED A RELATED EDITORIAL APPEARS TODAY SEE RELATED EDITORIAL REVIEW & OUTLOOK EDITORIAL PENN THE REPORT WSJ JULY 26 1993 THE PANEL FOUND THAT ONE OFFICER BEHAVED IN A DISCOURTEOUS MANNER TOWARD THE STUDENTS BY ORDERING THEM TO LEAVE BEFORE DETERMINING WHO THEY WERE OR GIVING THEM AN OPPORTUNITY TO EXPLAIN THEIR PRESENCE THE PANEL FOUND THAT HIS ACTIONS VIOLATED SECTION 8402 OF THE UPPD UNIVERSITY OF PENNSYLVANIA POLICE DEPARTMENT POLICIES AND PROCEDURES MANUAL AND SHOULD BE REVIEWED BY HIS SUPERVISOR FOR POSSIBLE DISCIPLINARY ACTION THE PANEL FOUND THAT THE MEDICAL SCHOOL SECURITY GUARD BEHAVED APPROPRIATELY BY CONTACTING THE UPPD THE PANEL RECOMMENDED THAT ALL SECURITY PERSONNEL RECEIVE TRAINING ON WORKING AND INTERACTING WITH PEOPLE FROM DIVERSE BACKGROUNDS THIS TRAINING SHOULD INCLUDE INFORMATION ABOUT THE DIVERSITY OF THE PENN COMMUNITY AND THE EXPECTATION THAT ALL MEMBERS OF THE COMMUNITY SHOULD BE TREATED WITH CIVILITY AND RESPECT REGARDLESS OF RACE COLOR SEX SEXUAL ORIENTATION RELIGION NATIONAL OR ETHIC SIC ORIGIN AGE DISABILITY OR STATUS AS A DISABLED OR VIETNAM ERA VETERAN THE PANEL FOUND THAT ONE OFFICER BEHAVED IN AN UNPROFESSIONAL MANNER IN VIOLATION OF SECTION 8402 OF THE UPPD POLICIES AND PROCEDURES MANUAL BY CURSING AT THE STUDENT AND USED EXCESSIVE FORCE BY STRIKING THE STUDENT WITH HIS BATON THE PANEL ALSO FOUND THAT THE OFFICER FAILED TO CONDUCT A PROPER AND THOROUGH INVESTIGATION BECAUSE HE NEGLECTED TO INTERVIEW THE SECURITY PERSONNEL WHO WERE IN PURSUIT THE PANEL FOUND THAT THE RESPONDING OFFICER VIOLATED SECTION 5220 OF THE UPPD POLICIES AND PROCEDURES MANUAL BY NOT REQUESTING THAT A SUPERVISOR BE DISPATCHED TO THE SCENE IN RESPONSE TO A DEMONSTRATION THE PANEL FOUND THAT THE DISPATCHER VIOLATED UPPD DIVISIONAL DIRECTIVE 9208 BY MAKING A COMMAND DECISION WITHOUT CONSULTING A SUPERVISOR THE PANEL FOUND THAT THE MUSEUM ADMINISTRATOR'S ACTIONS IN PURSUIT OF THE STUDENTS WERE INAPPROPRIATE AFTER THEY LEFT THE PROPERTY OF THE UNIVERSITY MUSEUM AND NOT IN ACCORDANCE WITH THE AUTHORITY AND RESPONSIBILITY OF HIS JOB FUNCTIONS HIS ACTIONS SHOULD BE REVIEWED BY HIS SUPERVISOR FOR POSSIBLE DISCIPLINARY ACTION THE PANEL FOUND THAT THE STUDENTS SHOULD HAVE SHOWN THEIR PENN CARDS IN SUMMARY THE PANEL CONCLUDED THAT ONCE THE INCIDENT OCCURRED AT DRL DAVID RITTENHOUSE LABORATORIES THE UPPD SHOULD HAVE RECOGNIZED THAT THE REMOVAL OF THE DP'S FROM AT LEAST THREE DIFFERENT LOCATIONS WAS A FORM OF STUDENT PROTEST AND NOT AN INDICATOR OF CRIMINAL BEHAVIOR ACCORDING TO THE UNIVERSITY'S EMERGENCY PROCEDURES PROTOCOLS THE UPPD SHOULD HAVE CONTACTED THE OFFICE OF THE VICE PROVOST FOR UNIVERSITY LIFE AS SOON AS IT RECOGNIZED THAT THE STUDENTS WERE INVOLVED IN A FORM OF PROTEST ONCE THE VPUL WAS NOTIFIED OF THE PROTEST OPEN EXPRESSION MONITORS WOULD HAVE BEEN DISPATCHED TO OBSERVE AND MONITOR THE STUDENTS' ACTIONS IN COMPLIANCE WITH THE EXISTING OPEN EXPRESSION GUIDELINES SINCE THIS ACT WAS A FORM OF PROTEST AND NOT A CRIMINAL OFFENSE IT WOULD HAVE BEEN MORE APPROPRIATE FOR OPEN EXPRESSION MONITORS NOT POLICE OFFICERS TO MEDIATE AND ATTEMPT TO RESOLVE ANY FURTHER CONFLICTS THAT RESULTED FROM THE REMOVAL OF THE DP'S THE OPEN EXPRESSION MONITORS COULD HAVE INFORMED THE STUDENTS ABOUT THE OPEN EXPRESSION GUIDELINES NOTIFIED THEM IF THEIR ACTIONS VIOLATED THE GUIDELINES AND IDENTIFIED STUDENTS WHO VIOLATED THE GUIDELINES IT IS VITAL THAT ALL UPPD PERSONNEL RECEIVE ADDITIONAL TRAINING ABOUT APPROPRIATE RESPONSES TO STUDENT DEMONSTRATIONS AND PROTESTS THIS TRAINING MUST INCLUDE EXTENSIVE INFORMATION ON THE UNIVERSITY'S OPEN EXPRESSION GUIDELINES AND THE ROLE AND RESPONSIBILITY OF OPEN EXPRESSION MONITORS THE UPPD POLICY ON HANDCUFFS SECTION 5706 SHOULD BE REVIEWED TO ASCERTAIN IF THERE ARE CIRCUMSTANCES WHEN IT MAY BE INAPPROPRIATE TO HANDCUFF DETAINEES THE APPLICATION OF ANY NEWLY IMPLEMENTED POLICY SHOULD BE MONITORED TO ENSURE THAT THE POLICY IS APPLIED CONSISTENTLY IS NONDISCRIMINATORY AND HAS NO ADVERSE IMPACT ON ANY GROUP OF PEOPLE AFTER THE POLICY IS IMPLEMENTED DATA SHOULD BE MAINTAINED BY THE DEPARTMENT ON THE RACE AND SEX OF INDIVIDUALS HANDCUFFED NATURE OF OFFENSES AND REASONS FOR HANDCUFFING SEE RELATED LETTERS LETTERS TO THE EDITOR THE GREAT PAPER THEFT WSJ AUG 20 1993 9307260010 YY93 MM08 9308200099 930726 REVIEW & OUTLOOK EDITORIAL PENN THE REPORT NOT LONG AGO DURING THE MEMORABLE WATER BUFFALO TRIALS AT THE UNIVERSITY OF PENNSYLVANIA WE ALSO REPORTED ON THE CONCURRENT SUSPENSION OF DONALD FITZGERALD DIRECTOR OF SECURITY FOR PENN'S UNIVERSITY MUSEUM OF ARCHAEOLOGY AND ANTHROPOLOGY MR FITZGERALD IT APPEARED HAD RUN AFOUL OF THE PENN ADMINISTRATION WHICH HAS SOME MARKEDLY PECULIAR NOTIONS ABOUT THE DUTES OF SECURITY OFFICERS BECAUSE HE TRIED TO APPREHEND TWO WOMEN STUDENTS RUNNING OUT OF THE MUSEUM CARRYING THREE LARGE PLASTIC BAGS IT TURNED OUT THAT THE WOMEN WERE NOT AS MR FITZGERALD WORRIED RUNNING OFF WITH MUSEUM PIECES PART OF A GROUP OF BLACK ACTIVIST STUDENTS AGGRIEVED BY THE VIEWS AIRED IN THE STUDENT PAPER THE WOMEN HAD CONFISCATED ALL THE COPIES OF THE DAILY PENNSYLVANIAN AT THE MUSEUM AS THEIR FRIENDS WERE DOING ELSEWHERE AROUND CAMPUS ON APRIL 15 VIRTUALLY THE ENTIRE PRESS RUN OF THE PAPER WAS APPROPRIATED AND CARTED OFF THE ADMINISTRATION HEADED AT THE TIME BY PRESIDENT SHELDON HACKNEY WHO RECENTLY WON CONFIRMATION AS HEAD OF THE NATIONAL ENDOWMENT FOR THE HUMANITIES DETERMINED AT ONCE THAT MR FITZGERALD SHOULD BE SUSPENDED FROM HIS SECURITY DUTIES HE WOULD REMAIN ON SUSPENSION MANY WEEKS WHILE A BLUE RIBBON PANEL APPOINTED BY THE PENN ADMINISTRATION DELIBERATED OVER THE EVENTS OF APRIL 15 THOSE DELIBERATIONS HAVE AT LAST COME TO AN END WITH THAT END HAS ALSO COME A REPORT ON THE PANEL'S FINDINGS ONE SO REMARKABLE FOR THE DEPTHS OF ITS FASTIDIOUSLY ARGUED NONSENSE THAT WE THOUGHT IT ONLY FITTING TO REPRINT PORTIONS NEARBY SEE RELATED EDITORIAL DOUBLETHINK AT THE UNIVERSITY OF PENNSYLVANIA WSJ JULY 26 1993 THE DOCUMENT IS A PURE SPECIMEN OF POLITICAL CRAVENNESS BUT SUCH CRAVENNESS IS HARDLY LIMITED TO THE UNIVERSITY OF PENNSYLVANIA THE UNHAPPY FACT OF UNIVERSITY LIFE TODAY IS THAT THERE ARE MANY PENNS AND MANY ADMINISTRATORS WHO THOUGHT THEY WERE PURCHASING PEACE BY ACCOMMODATING POLITICAL ZEALOTS THE DEGREE OF THAT EFFORT TO ACCOMMODATE IS REFLECTED IN THE CENTRAL PRONOUNCEMENT OF THE PENN PANEL'S REPORT NAMELY THE JUDGMENT THAT THE THEFT OF THE NEWSPAPERS WAS A FORM OF PROTEST AND THEREFORE NOT CRIMINAL BEHAVIOR APPARENTLY THEN ANY ASSAULT INCLUDING PRESUMABLY THE REMOVAL AND DESTRUCTION OF LIBRARY BOOKS SOME GROUP CONSIDERS OFFENSIVE MIGHT BE HELD IMMUNE FROM PROSECUTION IF IT'S A PROTEST THE REPORT GOES ON TO SAY THAT RATHER THAN TAKING ACTION THE POLICE SHOULD HAVE CONTACTED ENTITIES AT PENN CALLED OPEN EXPRESSION MONITORS TO STUDY THE STUDENTS ACTIONS THINK WE'RE MAKING THAT UP READ THE NEARBY EXCERPT THE PANEL CONCLUDES THAT THE MUSEUM SECURITY DIRECTOR'S PURSUIT OF THE WOMEN WITH THE SHOPPING BAGS WAS INAPPROPRIATE ONCE THOSE STUDENTS HAD LEFT THE PROPERTY OF THE MUSEUM AND WAS NOT IN ACCORDANCE WITH HIS JOB FUNCTIONS PRESUMABLY THEN ANY THIEF WHO WISHES TO APPROPRIATE SOME INVALUABLE MUSEUM PIECE CAN NOW CONSIDER HIMSELF IMMUNE FROM PURSUIT IF HE CAN GET PAST THE DOOR AND GROUNDS THE REPORT RECOMMENDS THAT FOR HIS INAPPROPRIATE BEHAVIOR SECURITY DIRECTOR FITZGERALD'S SUPERIORS SHOULD REVIEW HIS ROLE FOR POSSIBLE DISCIPLINARY ACTION MR FITZGERALD WHO HAS BEEN RETURNED TO ACTIVE DUTY RECEIVED A LETTER OF REPRIMAND AND WILL ALONG WITH OTHER SECURITY PERSONNEL HAVE TO ATTEND SENSITIVITY TRAINING CLASSES THERE HAVE BEEN OTHER INSTANCES IN WHICH ACTIVISTS HAVE UNDERTAKEN TO SILENCE OPPOSITION VIEWS BY REMOVING THE OFFENDING PUBLICATIONS AT PENN STATE NOT THE SAME AS THE U OF PENNSYLVANIA TWO FORMER STUDENTS JOURNALISM MAJORS NO LESS MADE OFF WITH FOUR THOUSAND COPIES OF AN ALTERNATIVE CONSERVATIVE STUDENT PUBLICATION CALLED THE LIONHEARTED HERE THE LEGAL OUTCOME WAS DIFFERENT TO THEIR CREDIT THE POLICE CHARGED THE PERPETRATORS WITH THEFT RECEIPT OF STOLEN PROPERTY AND CRIMINAL CONSPIRACY STILL IT'S A MEASURE OF HOW FAR THE ASSAULT ON FREE EXPRESSION HAS GONE ON CAMPUSES THAT THE PENN STATE UNDERGRADUATE PAPER THE DAILY COLLEGIAN ACTUALLY EDITORIALIZED IN FAVOR OF THE NOTION THAT THE REMOVAL AND BURNING OF THE LIONHEARTED WAS A LEGITIMATE ACT OF FREE EXPRESSION PRESUMABLY THESE STUDENT JOURNALISTS WILL SOON BE MAKING THEIR WAY INTO THE AMERICAN PRESS CORPS GEORGE ORWELL HAD THE WORD FOR THIS SORT OF REASONING AND FOR THE ENTIRE TENOR OF THE PENN PANEL'S REPORT THAT WORD IS DOUBLETHINK A DESCRIPTION UNFORTUNATELY AS RELEVANT TODAY AS IT WAS IN THE 1930S DURING HIS CONFIRMATION HEARINGS MR HACKNEY ASSURED THE SENATORS THAT HIS ADMINISTRATION TOOK THE MOST SERIOUS POSSIBLE VIEW OF THE THEFT OF THE DAILY PENNSYLVANIAN PAPERS AND THAT THE STUDENTS WHO TOOK THEM WOULD BE DISCIPLINED JUST HOW SERIOUSLY THE UNIVERSITY IN FACT TOOK THIS ATTACK ON THE RIGHT OF FREE EXPRESSION WILL BE CLEAR TO ANYONE WHO WANTS TO TAKE A LOOK AT THE EXCERPTS OF THIS STUNNING ORWELLIAN DOCUMENT FROM THE MINDS RUNNING AMERICA'S CAMPUSES SEE RELATED LETTERS LETTERS TO THE EDITOR THE GREAT PAPER THEFT WSJ AUG 20 1993 9307260087 YY93 MM08 9308200095 930708 ENVIRONMENT NOTILL FARMS SUPPLANT FURROWED FIELDS CUTTING EROSION BUT SPREADING HERBICIDES BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL HAMILTON COUNTY IOWA WHEN GEORGE GROVES WAS A BOY HERE IN THE HEART OF CORN COUNTRY NEATLY PLOWED FURROWS OF BLACK EARTH STRETCHED TO THE HORIZON EACH SPRING BUT THIS SEASON THE PLOWMAN'S ART IS OBSCURED BY MILLIONS OF ACRES OF DECAYING CORN STOCKS AND SOYBEAN STUBBLE INCLUDING SEVERAL HUNDRED ACRES FARMED BY MR GROVES NOW 41 YEARS OLD ONCE THE SIGN OF A LAZY FARMER THE FIELDS ARE THE SIGNATURE OF ONE OF THE FASTEST GROWING TRENDS IN AMERICAN AGRICULTURE NOTILL FARMING TILLING SOIL STILL THE DOMINANT APPROACH OF US FARMERS TENDS TO SPEED UP OXIDATION OF ORGANIC MATTER IN EFFECT BURNING UP NUTRIENTS BEFORE THEY CAN BE ABSORBED BY CROP ROOT SYSTEMS NOTILL FARMERS PLANT SEEDS DIRECTLY THROUGH THE PREVIOUS HARVEST'S CROP RESIDUE THE METHOD CUTS WIND AND WATER EROSION AND REPLENISHES THE CRUCIAL ORGANIC CONTENT OF THE TOP SOIL AS THE RESIDUE SLOWLY DECOMPOSES BUT INSTEAD OF PLOWS AND OTHER IMPLEMENTS NOTILL FARMING ALSO USES A VARIETY OF MOSTLY TOXIC CHEMICALS TO CONTROL WEEDS REVERSING A DECADELONG TREND TOWARD REDUCING HERBICIDE USE FOR FARMERS NOTILLING IS PRODUCING IMMEDIATE BENEFITS THEY HAVE CUT EROSION OF THEIR FIELDS 70 OR MORE AND BOOSTED CROP YIELDS MOST YEARS THOUGH UNUSUALLY HEAVY RAINS ACROSS THE MIDWEST THIS YEAR ARE LIKELY TO REDUCE YIELDS FOR ALL FARMERS AND BY ELIMINATING THE LABOR AND EQUIPMENT REQUIRED FOR CULTIVATION THEY'RE PRESERVING ANOTHER COMMODITY THAT'S OFTEN IN SHORT SUPPLY DOWN ON THE FARM MONEY THIS IS A REVOLUTION IN AGRICULTURE IT'S CHANGING THE CULTURE OF ROWCROP FARMING SAYS BILL RICHARDS AN OHIO FARMER WHO STEPPED DOWN LAST YEAR AS CHIEF OF THE AGRICULTURE DEPARTMENT'S SOIL CONSERVATION SERVICE EROSION CONTROL STARTED THE NOTILL MOVEMENT BUT GOOD ECONOMICS ARE REALLY MAKING IT HAPPEN COMPARED WITH CONVENTIONAL TILLAGE THOUGH NOTILL FARMING OFTEN INCREASES HERBICIDE USE GOVERNMENT FIGURES SHOW THAT INCLUDES THE WIDELY USED HERBICIDES ATRAZINE METOLACHLOR AND CYANAZINE ALL RATED POSSIBLE HUMAN CARCINOGENS BY THE ENVIRONMENTAL PROTECTION AGENCY AND THE PROBABLE HUMAN CARCINOGEN ALACHLOR NOTILL FARMERS ARE USING THE SAME OLD BAD CHEMICALS COMPLAINS RICHARD WILES A RESEARCHER WITH THE NONPROFIT ENVIRONMENTAL WORKING GROUP IN WASHINGTON THE CLINTON ADMINISTRATION ANNOUNCED A PLAN LAST MONTH TO CRACK DOWN ON PESTICIDE RESIDUES IN FOODS FOLLOWING A NATIONAL ACADEMY OF SCIENCES REPORT ON THE DANGERS POSED BY PESTICIDES IN FOODS THAT ARE HEAVILY CONSUMED BY CHILDREN THAT IS LIKELY TO PUT ADDED PRESSURE ON NOTILL FARMERS ACROSS THE COUNTRY TO CUT BACK ON CHEMICAL USE EVEN IF NOTILL FARMING USES THE SAME AMOUNT OR ONLY SLIGHTLY MORE CHEMICALS THAN CONVENTIONAL FARMING THAT'S NOT GOOD DECLARES MAUREEN HINKLE DIRECTOR OF AGRICULTURE POLICY FOR THE NATIONAL AUDUBON SOCIETY IN WASHINGTON BUT MR WILES IS OPTIMISTIC THAT NOTILL FARMERS CAN REIN IN THEIR APPETITES FOR PESTICIDES ESPECIALLY IF THEY'RE PRODDED BY THE GOVERNMENT AND PRIVATE GROUPS WE CAN CUT SOIL EROSION AND REDUCE CHEMICAL USE AT THE SAME TIME HE SAYS WE JUST HAVEN'T FOCUSED ON THAT SO FAR IN FACT NOTILL FARMING ACTUALLY REDUCES PESTICIDE CONTAMINATION OF SURFACE WATER IN MOST CASES SEVERAL GOVERNMENT AND UNIVERSITY STUDIES HAVE CONCLUDED THAT HERBICIDES ARE MUCH LESS LIKELY TO BE CARRIED AWAY IN SURFACE WATER RUNOFF FROM A NOTILL FIELD COVERED WITH CROP RESIDUE THAN FROM A CONVENTIONALLY TILLED FIELD EXCEPTIONS OCCUR WHEN NOTILL FIELDS ARE HIT WITH HEAVY RAINS IMMEDIATELY AFTER WEEDKILLERS HAVE BEEN APPLIED TO THE SOIL SURFACE IN THE EARLY SPRING STUDY RESULTS AREN'T AS CLEAR CUT ON WHETHER NOTILL FIELDS WHICH TEND TO BE RELATIVELY POROUS FACILITATE HERBICIDE CONTAMINATION OF GROUNDWATER SOURCES UNDER CERTAIN CONDITIONS LONG A FRINGE PRACTICE ON THE SCALE OF ORGANIC FARMING NOTILL FARMING HAS EXPLODED IN POPULARITY OVER THE PAST FEW YEARS THE FASTEST GROWTH LAST YEAR CAME HERE IN IOWA WHERE NOTILL ACREAGE JUMPED THREEFOLD TO 28 MILLION ACRES NATIONWIDE NOTILL FARMING LAST YEAR TOTALED ABOUT 28 MILLION ACRES OR ROUGHLY 10 OF ALL ACRES UNDER CULTIVATION THAT'S TWICE THE AMOUNT OF NOTILL ACRES AS RECENTLY AS 1989 NOTILL ACREAGE IS EXPECTED TO SWELL 20 TO 25 THIS YEAR FARMERS ARE REQUIRED BY RECENT LEGISLATION TO PRACTICE VARYING FORMS OF CONSERVATION TILLAGE OF WHICH NOTILL IS THE FASTEST GROWING ON HIGHLY ERODABLE ACREAGE BY 1995 IF THEY DON'T THEY RISK LOSING GOVERNMENT CROP SUPPORT PAYMENTS FARMERS AND INDUSTRY EXPERTS SAY THAT NOTILL FARMING PRODUCES SAVINGS IN EQUIPMENT FUEL AND LABOR COSTS IN A TYPICAL YEAR OF ABOUT 10 TO 20 AN ACRE A JOINTLY SPONSORED GOVERNMENTFARM INDUSTRY SURVEY CONDUCTED LAST YEAR FOUND THAT INDIANA FARMERS OVER THE PAST FOUR YEARS SAVED AN AVERAGE OF 1465 AN ACRE USING NOTILL TO GROW CORN AND 849 AN ACRE GROWING NOTILL SOYBEANS AS A RESULT THE LARGEST FARM EQUIPMENT MAKER DEERE & CO'S FLAGSHIP JOHN DEERE DIVISION IS SCRAMBLING TO DEFEND ITS TURF WITH NOTILL FARMERS SUBSTITUTING CHEMICAL APPLICATIONS FOR A BARN FULL OF PLOWS DISKS CULTIVATORS AND OTHER EQUIPMENT YOU CAN LOOK AT IT AS DEERE COMPETING FOR THE SAME JOB OF KILLING WEEDS AS THE HERBICIDE MANUFACTURERS SAYS W DORAL KEMPER A NATIONAL PROGRAM LEADER AT THE AGRICULTURAL RESEARCH SERVICE WING OF THE AGRICULTURE DEPARTMENT JOHN DEERE MAKES THE COUNTRY'S TOPSELLING NOTILL SOYBEAN PLANTER OR DRILL BUT FOR DEERE NOTILL FARMING APPEARS TO BE A TOUGH ROW TO HOE IT LOBBIED FEDERAL OFFICIALS TO GIVE MORE SOIL CONSERVATION CREDIT TO LESS RADICAL LOW OR MULCH TILLAGE METHODS WHICH LEAVE SOME RESIDUE ON THE SURFACE AND ACCOUNT FOR MOST OF ITS SALES DEERE'S DIRECTOR OF SALES BRANCHES RW PORTER WROTE TO MR RICHARDS THEN SOIL CONSERVATION SERVICE CHIEF LAST OCTOBER POINTING OUT THAT JOHN DEERE HAS PLACED CONSIDERABLE RESOURCES INTO DEVELOPING NEW PRODUCTS BASED ON THE EROSIONREDUCTION MERITS OF SMALL AMOUNTS OF SURFACE COVER AS OPPOSED TO NOTILL LATELY THOUGH DEERE HAS TAKEN A MORE CONCILIATORY APPROACH COMPANY OFFICIALS MET WITH CONSERVATION SERVICE AND OTHER GOVERNMENT OFFICALS IN APRIL AT THE COMPANY'S MOLINE ILL HEADQUARTERS TO DISCUSS NOTILL FARMING AND RESIDUE MANAGEMENT A COMPANY SPOKESMAN SAYS DEERE AND THE GOVERNMENT OFFICIALS INTEND TO WORK TOGETHER ON FUTURE EROSION PROJECTS AMONG CHEMICAL COMPANIES MONSANTO CO APPEARS TO BE REAPING THE BIGGEST BENEFITS FROM NOTILL FARMING THE ST LOUIS COMPANY MAKES SEVERAL TOXIC HERBICIDES THAT ARE FAVORED BY CONVENTIONAL AND NOTILL FARMERS ALIKE INCLUDING LASSO ITS BRAND NAME FOR ALACHLOR AND ITS ROUNDUP HERBICIDE A COMPOUND THAT KILLS PLANTS ON CONTACT BUT DOESN'T HAVE A TOXIC OR CARCINOGENIC EFFECT AT NORMAL USE LEVELS IS A HUGE SUCCESS WITH NOTILL FARMERS NOTILLERS USE ROUNDUP TO BURN DOWN WEEDS BEFORE THEY PLANT IN THE SPRING AND TO ATTACK WEED PATCHES THAT HAVE ESCAPED OTHER HERBICIDE APPLICATIONS IN MAY MONSANTO HAD TO RESORT TO RATIONING THE HERBICIDE BECAUSE OF SWELLING NOTILL DEMAND ANALYSTS ESTIMATE THAT ROUNDUP SALES CLOSE TO 1 BILLION LAST YEAR ROSE MORE THAN 20 WORLDWIDE IN THE SECOND QUARTER BECAUSE OF NOTILL AND OTHER TYPES OF CONSERVATION FARMING ON THE GROVES FAMILY FARM IN NORTH CENTRAL IOWA ONLY ABOUT 5 OF THE 2300 ACRES ARE RATED HIGHLY ERODABLE BY THE SOIL CONSERVATION SERVICE BUT MR GROVES IS PLANTING 500 ACRES OF NOTILL CORN AND SOYBEANS THIS YEAR UP FROM ABOUT 390 IN 1992 HIS FIRST NOTILL YEAR AND HE AND HIS BROTHER WILFRED HOPE TO CONVERT MOST OF THE FARM TO NOTILL OVER THE NEXT FEW YEARS THAT WOULD ALLOW THEM TO SELL A MAMMOTH FOURWHEELDRIVE STEIGER TRACTOR THAT COST 140000 IN 1987 AS WELL AS SEVERAL OTHER TILLAGE IMPLEMENTS TO STAY COMPETITIVE HE SAYS YOU HAVE TO KEEP YOUR COSTS DOWN AND STAY ON TOP OF THE LATEST TECHNOLOGY SOURCE ENVIRONMENTAL WORKING GROUP COMPILED FROM USDA DATA SEE RELATED LETTER LETTERS TO THE EDITOR NOTILL FARMS BETTER ALL THE WAY AROUND WSJ AUG 20 1993 9307080159 YY93 MM08 9308200088 930720 INTERNATIONAL COCACOLA INDOCHINA VIETNAM FIRM SET PACT TO START JOINT VENTURE SPECIAL TO THE WALL STREET JOURNAL SINGAPORE COCACOLA INDOCHINA PTE LTD HAS SIGNED A CONTRACT WITH VIETNAM'S CHUONG DUONG BEVERAGE FACTORY TO FORM A JOINT VENTURE IN VIETNAM BUT NEEDS THE LIFTING OF US TRADE SANCTIONS FOR THE DEAL TO BE EXECUTED A STATEMENT RELEASED IN SINGAPORE SAID THE CONTRACT WAS SIGNED IN HO CHI MINH CITY COCACOLA INDOCHINA PTE LTD IS A JOINT VENTURE BETWEEN TWO MAJOR REGIONAL BOTTLERS OF COCACOLA SINGAPORE'S F&N COCACOLA PTE LTD AND THAI PURE DRINKS LTD OF THAILAND COCACOLA CO BASED IN ATLANTA HAS MINORITY STAKES IN BOTH COMPANIES BUT US CONCERNS ARE NOW PROHIBITED FROM TRADING WITH VIETNAM UNDER THE JOINTVENTURE PLAN CHUONG DUONG'S FACILITIES TO PRODUCE SOFT DRINKS WILL BE MODERNIZED AT A TOTAL PROJECT COST OF 245 MILLION THE FACILITIES WILL THEN BE USED TO PRODUCE COCACOLA BEVERAGES WHICH AREN'T CURRENTLY SOLD IN VIETNAM THE VIETNAMESE COMPANY IS THE COUNTRY'S LARGEST SOFTDRINKS COMPANY AND IS LOCATED IN HO CHI MINH CITY THE COMPANY COMES UNDER THE AUTHORITY OF THE MINISTRY OF LIGHT INDUSTRY WHICH IS RESPONSIBLE FOR THE ADMINISTRATION OF BEVERAGE PRODUCTION THROUGHOUT VIETNAM CHUONG DUONG WAS A FORMER BOTTLER OF COCACOLA BEFORE 1975 AT WHICH TIME IT HAD ANNUAL SALES OF MORE THAN HALF A BILLION BOTTLES OF BEVERAGES MICHAEL FAM CHAIRMAN OF COCACOLA INDOCHINA PTE LTD SAID CHUONG DUONG HAS THE LOCAL KNOWLEDGE AND DISTRIBUTION NETWORK TO GUARANTEE THE SUCCESS OF THE VENTURE WHEN SANCTIONS ARE LIFTED ALTHOUGH THE US HAS GIVEN NO INDICATIONS ABOUT WHEN THAT MIGHT HAPPEN RECENT DIPLOMATIC CONTACTS BETWEEN THE TWO NATIONS HAVE OFFERED SOME HOPE SEE RELATED LETTER LETTERS TO THE EDITOR COKE IN VIETNAM SO MUCH FOR EMBARGOES WSJ AUG 20 1993 9307200008 YY93 MM08 9308200078 930708 END OF THE LINE FLOODED BY REFUGEES WESTERN EUROPE SLAMS DOORS ON FOREIGNERS ITALY USES GUNBOATS TO KEEP ALBANIANS OUT IN FRANCE GOAL IS ZERO IMMIGRATION NEIGHBORS ARE GATEKEEPERS BY BARRY NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL THE MOROCCAN GUARD BINOCULARS RAISED CAN EASILY MAKE OUT THE HUMP OF GIBRALTAR IN THE HAZE ACROSS THE STRAIT HIGH IN HIS TOWER ON THE TIP OF CABO NEGRO HE SCANS FOR AFRICANS IN SMALL BOATS ON THEIR WAY TO SPAIN HE IS THERE TO STOP THEM THE GUARD ACTS BORED BUT THE INTERIOR MINISTRY BOSS BEHIND HIM SOUNDS RESENTFUL THIS WHOLE JOB HE SAYS ONLY MAKES THE BEARDS HIS WORD FOR ISLAM'S FUNDAMENTALISTS THAT MUCH MORE PERSUASIVE WHEN THEY CALL FOR A JIHAD AGAINST CHRISTIANITY A POLISH GUARD DOESN'T NEED BINOCULARS TO FIX AN EYE ON GERMANY IT LIES 50 YARDS FROM HIS TREE COVER BEYOND THE RIBBON OF THE RIVER NEISSE IF A ROMANIAN SPRINGS FROM THE BUSHES AND RUNS FOR THE RIVER THE GUARD HAS TO SPRINT IN PURSUIT BUT THE RIFLE ON HIS SHOULDER IS MORE ENCUMBRANCE THAN THREAT IT'S ONLY FOR SHOW STANDING ON THE LEVEE AT DUSK THE GUARD'S SUPERIOR OFFERS A BIT OF HISTORY IN 1939 WHEN POLAND WAS STORMED BY TWO ARMIES WE RAN TO THE WEST THROUGH ROMANIA HE SAYS ROMANIA PERMITTED US IN A SILENT WAY TO RUN NOW THE SITUATION IS REVERSED WE POLES VIEW THESE ROMANIANS WITH A CERTAIN SENTIMENT FROM THE OUTSIDE LOOKING IN WESTERN EUROPE STILL HAS ITS OLD CHARM MILLIONS ACHE FOR ITS EMBRACE BUT TODAY THE WEST HAS HAD ITS FILL OF IMMIGRANTS AND FOR THE DIRTY WORK OF SHIPPING THEM OUT AND KEEPING THEM OUT IT IS HIRING GATEKEEPERS THE COUNTRIES ON ITS OUTER RIM THE RESPONSIBILITY DOESN'T GENERATE ANY PRIDE I'D LIKE TO SEE LEGAL ORDERLY IMMIGRATION SAYS TERRAB MOUHCINE WHO GOVERNS MOROCCO'S NORTHCOAST DISTRICT OF TETOUAN LET'S MANAGE THIS FLOW INSTEAD OF CREATING ANTAGONISMS AND BLAMING EVERYTHING ON IMMIGRATION EUROPE IS CLOSING DOWN ON ITSELF HIS WORDS ECHO ALL THE WAY TO WARSAW THE WHOLE OF EUROPE IS CLOSING SAYS TOMASZ KOZLOWSKI THE POLISH DEPUTY INTERIOR MINISTER FOR THE WEST POLAND IS A BUFFER AGAINST A FLOOD FROM THE EAST THIS IS NOT A ROLE ANY COUNTRY SHOULD SERVE FOR OTHERS WE AREN'T THE WEST'S IMMIGRATION OFFICE FEAR OF FOREIGNERS IT SEEMS IS REPLACING FEAR OF NUCLEAR WAR AS THE DISTRACTION OF THE DECADE FOR WESTERN EUROPE'S RICH NATIONS THE DEMOGRAPHICS CAN'T BE DENIED 560000 ASYLUM SEEKERS IN 1992 AGAINST 65000 IN 1983 A YEARLY INFLUX OF NEARLY TWO MILLION PEOPLE PERHAPS FIVE MILLION ILLEGAL ALIENS WITH CHINESE BOAT PEOPLE WASHING UP IN SAN FRANCISCO AND ON NEW YORK'S ROCKAWAY BEACH THE US ISN'T IMMUNE TO THIS BUT EUROPEANS ARE LESS FLEXIBLE AND MORE FRIGHTENED THE BRITISH KEEP A LID ON THE NUMBER OF ASIANS AND WEST INDIANS IN THEIR MIDST WHILE LISTENING FOR THE TICK OF AN IMMIGRATION TIME BOMB IN HONG KONG THE FRENCH EARS COCKED FOR SOUNDS OF CIVIL WAR IN ALGERIA HAVE DECLARED THEMSELVES OFF LIMITS TO STRANGERS BURNED BY RACISM GERMANY STOPPED HEARING MOST NEW ASYLUM PLEAS AS OF JULY 1 AND WILL KEEP LOOKING OVER THE HEADS OF ITS TURKISH AND ROMANIAN EXILES TO THE HORDES WHO WOULD DO ANYTHING TO GET OUT OF RUSSIA EUROPE NEEDS NEW BLOOD BUT IT'S IMPOSSIBLE TO DISCUSS THAT SAYS JAN NIESSEN OF THE CHURCHES COMMITTEE FOR MIGRANTS IN EUROPE THE WHOLE DEBATE ON IMMIGRATION TAKES PLACE IN A WILDERNESS OF FEAR WE HAVE TOO MANY WE CAN'T COPE WE'RE NOT TAKING ANY MORE PEOPLE WILL BREAK IN ANYHOW ADDS ONE OF HIS COLLEAGUES THE MORE RIGID YOU GET THE MORE ILLEGALS YOU GET IT'S IMPOSSIBLE TO CLOSE THESE BORDERS NOBODY HAS EVER SUCCEEDED EXCEPT THE COMMUNISTS THE URGE TO JUMP BORDERS WAS THE TRIPWIRE OF THEIR DOWNFALL IN 1989 FREEDOM TO TRAVEL EASTERN EUROPE ASSUMED CAME WITH FREEDOM WHEN RUSSIANS GOT ACCESS TO PASSPORTS THIS YEAR BUT NOT TO VISAS THE NEWSPAPER MOSCOW NEWS WAS AMAZED RUSSIA AND THE WEST HAVE SWAPPED PARTS AN IRON CURTAIN HAS DROPPED BEFORE THE MAJORITY OF THOSE WANTING TO ENTER EUROPE TALK OF ERASING BORDERS WITHIN THE EUROPEAN COMMUNITY HAS TEASED OUTSIDERS ALL THE MORE WHILE FREIGHT BEGAN ROLLING UNIMPEDED AMONG THE 12 EC STATES THIS YEAR PEOPLE DIDN'T BARRIERS TO CITIZENS ARE SUPPOSED TO BE GONE BY JANUARY YET ONLY EIGHT COUNTRIES HAVE STARTED PULLING THEM DOWN BEFORE TRAVEL GETS EASIER INSIDE THE COMMUNITY THE STICKLERS SAY PENETRATING THE PERIPHERY HAS TO GET HARDER FOR IMMIGRANTS THE EC IS NO GOLDEN MOUNTAIN THAT IS WHAT THE CHINESE CALL THE US FOR ALL ITS DOUBTS GOING BACK TO BENJAMIN FRANKLIN WHO THOUGHT GERMANS WOULDN'T ASSIMILATE THE US SEES ITSELF AS AN IMMIGRATION COUNTRY AS SUCH IT FORMS A SMALL OPENHEARTED CLUB WITH CANADA AUSTRALIA AND NEW ZEALAND COUNTRIES ON THE EUROPEAN SIDE OF THE ATLANTIC DON'T FEEL THE SAME AS OXFORD UNIVERSITY DEMOGRAPHER DAVID COLEMAN NOTES A EUROPEAN WOULD SAY IT'S THE AMERICANS WHO ARE PECULIAR ONLY FRANCE HAS VALUED STRANGERS BASING NATIONALITY ON IDEALS NOT BLOODLINE THAT ENDED IN JUNE WHEN THE NEW GOVERNMENT SET A GOAL OF ZERO IMMIGRATION IN EUROPE'S WORST IDENTITY CRISIS MEANWHILE GERMANY IS FIGHTING RACISM BY PENALIZING ITS VICTIMS WITHHOLDING CITIZENSHIP FROM TURKS BORN THERE AND DOING ITS BEST TO SHUT OUT NEW ARRIVALS EUROPEANS CLING TO A SELFIMAGE OF STATES WHERE EVERYONE LOOKS EATS AND PRAYS ALIKE BUT REALITY DIFFERS GERMANY HAD 13 MILLION FOREIGN WORKERS IN 1910 AND THE FRENCH FOREIGN POPULATION IS NO GREATER TODAY AT 6 THAN IN 1931 THE FOREIGNERS WHO REBUILT THE CONTINENT AFTER WORLD WAR II STAYED AND MULTIPLIED YET NO COUNTRY IN WESTERN EUROPE TODAY HAS A SYSTEM OF PLANNED IMMIGRATION PEOPLE LEAK IN AND SLOSH AROUND SOME SOON FIND HOW UNWELCOME THEY ARE OTHERS BY NOW KNOW IN ADVANCE IN THE CROWDS OF ROTTERDAM THE DUTCH PORT A THIRD OF THE FACES LOOK ASIAN OR AFRICAN PERHAPS ONE IN FOUR HAS NO BUSINESS BEING THERE PAULUS KIRK A BRICK CHURCH ON THE DISTRICT'S EDGE IS WHERE YAHYA ZAAJ WAS DUMPED AFTER HE WAS SHOT HE IS 28 A MOROCCAN A YEAR AGO HE BOARDED A FERRY IN TANGIER WITH A FRENCH VISA AND BREEZED UNNOTICED ACROSS BELGIUM TO HOLLAND HE WORKED WITHOUT PAY IN A MOROCCAN LUNCH BAR THEN A FRIEND FOUND HIM A PLACE TO SHARE WITH A DUTCHMAN DAYS AFTER HE MOVED MR ZAAJ SAYS A MAN BURST IN AND FIRED A BULLET INTO HIS KNEE I DIDN'T KNOW HIM HE SAYS SEATED ON A COT WITH A BRACE ON HIS LEG MR ZAAJ HAS LOST HIS PASSPORT BUT THE POLICE HAVE TRACED HIS NATIONALITY WHEN HIS LEG HEALS THEY WILL SEND HIM HOME MANY PEOPLE FROM MOROCCO WANT TO COME HERE HE SAYS THEY DON'T HAVE A TRUE IMAGE OF EUROPE THEY THINK IT'S PARADISE WHEN MR ZAAJ IS ASKED WHAT HE THINKS OF EUROPE HIS REPLY IS UNPRINTABLE WRITING LETTERS IN THE NEXT ROOM IS A ROMANIAN NAMED DORIN HE CROSSED POLAND BY TRAIN LAST YEAR AND PADDLED THE NEISSE TO GERMANY BUT THE 30YEAROLD ENGINEER KNEW BETTER THAN TO STAY HE TOOK A TRAIN TO HOLLAND NEVER SHOWING HIS PASSPORT FILED AN ASYLUM CLAIM TO BUY TIME AND HEADED FOR THE NEW ZEALAND EMBASSY TO APPLY FOR PERMANENT RESIDENCE NOW HE IS WAITING FOR HIS VISA WHY NEW ZEALAND HE SAYS WHY DO YOU THINK BECAUSE IT'S NOT WESTERN EUROPE THEY'LL ACCEPT ME AND EUROPE WILL BE GLAD TO SEE HIM GO REDUCING BY ONE ITS HUGE PILE OF UNPROCESSED PLEAS FOR POLITICAL ASYLUM IN THE ASHES OF WAR THE 1951 GENEVA CONVENTION PROMISED ASYLUM TO ANYONE WITH A WELLFOUNDED FEAR OF PERSECUTION BECAUSE EACH CLAIM HAS TO BE CHECKED THOUSANDS FLEEING POVERTY NOT PERSECUTION HAVE SLIPPED INTO EUROPE WITH ITS CHINESE ARRIVALS THE US HAS SEEN HOW BIG THE ASYLUM LOOPHOLE CAN BE IN EUROPE IT HAS EXPANDED RAPIDLY IN THE PAST 10 YEARS AND THE EC IS ALREADY DEVOTING A GOOD DEAL OF BUREAUCRATIC ENERGY TO CLOSING IT LAST DECEMBER ITS LEADERS RECOGNIZED SOMETHING CALLED THE FIRSTSAFECOUNTRY PRINCIPLE IT MEANS ANYONE SEEKING REFUGE MUST ASK FOR IT IN THE NEAREST SAFE PLACE EVEN PART OF HIS OWN COUNTRY THOSE WHO DON'T SAID THE EC SHOULD BE BUMPED TO THE LAST SAFE COUNTRY THEY CROSSED BEFORE ENTERING THE COMMUNITY THOSE WHO FAKE OR DESTROY PAPERS SHOULD HAVE ASYLUM CLAIMS STAMPED MANIFESTLY UNFOUNDED AND BE DENIED ENTRY ON THE SPOT IN THE FOG OF DIVERGING NATIONAL INTERESTS THE NEW RULES WILL TAKE TIME TO SHAPE UP IN THE INTERIM POLITICALLY PINCHED WESTERN GOVERNMENTS ARE BUILDING WALLS OF THEIR OWN NOT ONLY ON BORDERS IT HAS BECOME GENERAL PRACTICE TO FINE AIRLINES FOR FLYING UNDOCUMENTED ASYLUM SEEKERS WHOSE CLAIMS DON'T STAND UP SO CARRIERS PLAY IMMIGRATION JUDGES INSPECTING PAPERS AS PASSENGERS BOARD ONCE IN A COUNTRY FAILED APPLICANTS FIND IT HARDER TO LIE LOW GERMANY FLIES MANY ROMANIANS STRAIGHT BACK TO BUCHAREST FRENCH COPS MAY SOON HAVE THE POWER TO DEMAND ANYONE'S PAPERS HOLLAND GOES ONE BETTER NAMES OF UNDESIRABLES FLASH ON COMPUTERS AT STATE OFFICES ILLEGALS MEET THE FRONTIER EVERYWHERE HOUSING INSURANCE SOCIAL SERVICES SAYS MARIJKE BIJL WHO WORKS WITH ALIENS IN THE HAGUE EVERY AGENCY HAS ITS BORDER PATROL BUT MANY ASYLUM SEEKERS GET BLOCKED AT EUROPE'S DOORSTEPS EVEN BEFORE IT PUT THE SCREWS ON IMMIGRANTS FRANCE QUIETLY TIGHTENED ITS ASYLUM RULES ONLY HALF THE ARRIVALS WHO TRIED LAST YEAR MANAGED TO FILE CLAIMS SINCE BOATLOADS OF ALBANIANS CAME ASHORE IN ITALY TWO YEARS AGO ITALIAN NAVAL SHIPS HAVE PATROLLED ALBANIA'S TERRITORIAL WATERS TO SCARE OFF NEW FLOTILLAS OF 51000 RECENT WOULDBE ASYLUM CLAIMANTS WHO REACHED ITALY FROM ELSEWHERE BORDER GUARDS HAVE SUMMARILY DEPORTED 48000 SPAIN AND PORTUGAL WERE ONCE SOURCES OF LABOR FOR THE NORTH AND THEN GATEWAYS TO EUROPE FOR NORTH AFRICANS NOW BOTH HAVE PASSED STERN LAWS TO KEEP IMMIGRANTS OUT AND GERMANY ONCE THE WORLD'S ASYLUM MECCA HAS REVOKED ITS OVERGENEROUS CONSTITUTIONAL WELCOME AND MADE THE FIRSTSAFECOUNTRY PRINCIPLE ITS OWN ALL OF WHICH RAISES A QUESTION IF THE EC PROCLAIMS ITS NEXTDOOR NEIGHBORS SAFE HOW ARE THOSE COUNTRIES SUPPOSED TO REACT ONE WAY IS TO DECLARE THEIR OWN NEIGHBORS SAFE THUS AUSTRIA HAS STOPPED ADMITTING BOSNIANS HEADED FOR GERMANY WHO ARRIVE VIA SAFE SLOVENIA AFTER CROSSING SAFE CROATIA WITH 750000 REFUGEES BOTTLED UP THERE CROATIA HAS BEEN FORCED TO SHUT ITS BORDER WITH BOSNIA ANOTHER WAY IS TO REFUTE THE SAFECOUNTRY PRINCIPLE AND REFUSE ANYONE'S REJECTS THAT IS HOW THE CZECH REPUBLIC PARRIED GERMANY'S PLEA TO TAKE BACK ROMANIANS THE CZECHS WORRY THAT SLOVAKIA WON'T TAKE THEM IN TURN AND THE SLOVAKS DOUBT HUNGARY WILL ALREADY STUCK WITH A BACKWASH OF AUSTRIA'S YUGOSLAV REJECTS HUNGARY IN THE PAST YEAR HAS DENIED ENTRY TO 13 MILLION PEOPLE THE VICTIMS OF THIS MESS AID AGENCIES ARGUE BECOME REFUGEES IN ORBIT PUSHING THIS BURDEN TO THE FRINGES OF THE COMMUNITY SAYS THE IMMIGRATION LAW PRACTITIONERS ASSOCIATION IN LONDON ALLOWS PEOPLE TO BE DUMPED LIKE UNCLAIMED BAGGAGE IN A THIRD STATE WHERE THEY MAY HAVE NO KNOWLEDGE OF THE LANGUAGE OR MEANS OF SUPPORT ONLY TWO SUCH STATES HAVE SUBMITTED TO PLAYING ALONG POLAND AND MOROCCO THEIR RECORD SO FAR SCARCELY INSPIRES OPTIMISM TWO YEARS AGO UNDER EC PRODDING SPAIN SLAPPED A VISA REGIME ON MOROCCANS AND OTHER AFRICANS THAT BEGAT A BUSINESS FOR MOROCCAN SMUGGLERS FERRYING ILLEGALS IN FLIMSY BOATS ACROSS THE STRAIT OF GIBRALTAR AT NIGHT AND SHOVING THEM OVERBOARD TO SWIM THE LAST 200 YARDS TO THE SPANISH COAST IN 1992 1000 DROWNED LAST OCTOBER SPAIN PRODDED MOROCCO TO DO SOMETHING KING HASSAN II AGREED IF THE EC WOULD GIVE HIM 2 BILLION IN AID WITH THE EC PONDERING THAT MOROCCO CONCENTRATED ITS NAVY ON THE NORTH COAST AND PUT 3500 SOLDIERS ON THE BEACHES IT BEGAN TO TAKE BACK ITS OWN CITIZENS PICKED UP IN EUROPE AS WELL AS AFRICANS WHO REACHED SPAIN THROUGH MOROCCO IT PENNED THE BLACKS IN A BULL RING UNTIL THEIR EMBASSIES FLEW THEM HOME ASYLUM WAS OUT OF THE QUESTION TODAY BLACK FACES RARELY APPEAR ON THE STREETS OF TANGIER THEY GOT THE MESSAGE SAYS A MAN AT THE INTERIOR MINISTRY MOROCCO IS OUT BUT NOT OUT COLD IN A TANGIER ALLEY A SMUGGLERS' MIDDLEMAN CONFIDES THAT THE TRADE IN PEOPLE IS LESS INTENSE BUT STILL GOES ON BEHIND KING HASSAN'S CALL FOR AID SAYS A WESTERN DIPLOMAT IS THE THREAT THAT IF HE DOESN'T GET THE HELP WE'LL SOON BE BACK TO HUNDREDS GOING OVER EVERY NIGHT POLAND LACKS TWO MOROCCAN ADVANTAGES WHEN IT COMES TO SEALING BORDERS A PROTECTIVE RING OF DESERT AND SEA AND A POLICE STATE IT HAS ONE BIG DISADVANTAGE IN RETURN FOR GAINING PERMISSION FOR ITS CITIZENS TO TRAVEL WITHOUT VISAS POLAND ACCEPTS ANY ILLEGALS AND ASYLUM REJECTS WHO PASS THROUGH ITS TERRITORY ON THEIR WAY TO WESTERN EUROPE INGENUOUSLY ITS DIPLOMATS SIGNED THAT DEAL JUST BEFORE GERMANY CANCELED THE ASYLUM LAW THAT DREW 100000 ROMANIANS ACROSS POLAND LAST YEAR NOW POLAND WILL GET THEM COMING AND GOING TO EASE THE BLOW GERMANY SAYS IT WILL EXPEL JUST 10000 PEOPLE THIS YEAR AND HAS ADDED A 75 MILLION SWEETENER THE POLES AREN'T OVERJOYED REFUGEES FOR MONEY SNAPS MR KOZLOWSKI OF THE INTERIOR MINISTRY IT'S NOT A GOOD TRADE GERMANY MAY HAVE ANOINTED IT A SAFE COUNTRY BUT POLAND IS IN NO SHAPE FOR AN ONSLAUGHT IT HAS NO ASYLUM LAW OR ASYLUM BUREAUCRACY ITS RESPONSE IS TO MOVE EUROPE'S EDGE EASTWARD HARDENING ITS OWN ENTRY RULES AND SPENDING GERMANY'S MONEY ON FAST BIKES AND INFRARED SIGHTS FOR ITS BORDER WITH BELARUS AND UKRAINE THE POLES PREFER GENTLER SOLUTIONS LEGALLY REGISTERED AND FREE TO TRAVEL THEY WORK IN THE WEST BY THE TENS OF THOUSANDS ORDERED MIGRATION MIGHT DO AS WELL FOR OTHERS JUST AS AID AND TRADE MIGHT DISSUADE MANY FROM STRAYING TO START WITH BUT LITTLE ELSE SHORT OF MACHINE GUNS WILL KEEP THE CRASHERS FROM EUROPE'S NEW GATES MOTHERS WITH SMALL BABIES CROSS THE RIVER IN THE WINTER AT NIGHT CAPT ADAM PUDLO IS SAYING YOU CAN'T CONSIDER RATIONAL REASONS THESE PEOPLE ARE DESPERATE EARLY ON A GRAY MORNING AT A GUARD POST NEAR THE NEISSE THE CAPTAIN SHOWS OFF THE OVERNIGHT CATCH 12 TIRED MEN NINE ROMANIANS AND THREE RUSSIANS LOCKED BEHIND BARS IN A SMALL CELL THEY DASHED FOR THE RIVER IN THE DARK AND DIDN'T MAKE IT ACROSS NOW THEY ARE PUT IN A VAN DRIVEN TO A NEARBY RAILROAD STOP AND TOLD TO BE OUT OF POLAND IN TWO DAYS WE NEVER REALLY FIND OUT IF THEY LEAVE OR NOT SAYS THE CAPTAIN THE VAN DRIVES OFF THE MEN STAND UNGUARDED AT THE STATION DOOR THEY DON'T WANT ROMANIANS IN GERMANY ONE SAYS IT'S IMPOSSIBLE TO ASK FOR ASYLUM THEN WHY DID HE RUN FOR THE RIVER I WAS GOING TO BELGIUM AND NOW I'LL TRY AGAIN A TRAIN ROLLS IN THE MEN DO NOTHING THEN AS IT PULLS AWAY THEY TROT FOR IT AND HOP ABOARD THE NEXT STOP IS TWO MILES DOWN THE LINE ON THE BANKS OF THE NEISSE TONIGHT THEY WILL BE BACK SEE RELATED LETTER LETTERS TO THE EDITOR GERMANY STILL GRANTS POLITICAL ASYLUM WSJ AUG 20 1993 9307080004 YY93 MM08 9308190151 930819 CANADIAN BOND AUCTION OTTAWA THE CANADIAN GOVERNMENT SAID IT SOLD AT AUCTION 180 BILLION CANADIAN DOLLARS US137 BILLION OF 65 BONDS DUE SEPT 1 1998 AT AN AVERAGE YIELD OF 6444 THE NEW BONDS WILL BE USED TO REDEEM IN PART C245 BILLION OF GOVERNMENT BONDS MATURING SEPT 1 9308190150 930819 CANADIAN FIRMS' SHIPMENTS UP OTTAWA CANADIAN MANUFACTURERS RECORDED A 05 RISE IN SHIPMENTS IN JUNE FROM MAY AND A 28 INCREASE IN NEW ORDERS STATISTICS CANADA A GOVERNMENT AGENCY SAID THE RISE IN SHIPMENTS FOLLOWED TWO CONSECUTIVE MONTHS OF DECLINE IT WAS LED BY A 6 INCREASE IN AUTO INDUSTRY SHIPMENTS 9308190149 930819 ICN TO REDEEM BONDS COSTA MESA CALIF ICN PHARMACEUTICALS INC SAID IT GAVE NOTICE OF THE REDEMPTION OF ITS 6 3/4 CONVERTIBLE SUBORDINATED BONDS AT THE BONDHOLDERS' OPTION AND SAID THE REDEMPTION WILL HELP TO CONTINUE TO PARE INTEREST EXPENSE AND WILL SUPPORT THE BIOTECHNOLOGY COMPANY'S PROGRAM TO REDUCE LONGTERM DEBT THE ORIGINAL 75 MILLION 6 3/4 BOND OFFERING WAS ISSUED IN INTERNATIONAL MARKETS IN 1986 THE BONDS ARE CONVERTIBLE INTO ICN COMMON SHARES 9308190148 930819 ECONOMY GERMANY SEES BOTTOM OF ITS RECESSION BUT OECD IS PREDICTING MORE JOB LOSSES BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT THE GERMAN GOVERNMENT SAID THE NATION'S RECESSION MAY HAVE BOTTOMED OUT IN THE SECOND QUARTER BUT THAT OUTLOOK WAS OVERSHADOWED BY A SEPARATE FORECAST OF A SLUGGISH RECOVERY THAT COULD ELIMINATE AN ADDITIONAL 700000 JOBS BY LATE 1994 THE BONN ECONOMICS MINISTRY SAID THE WESTERN GERMAN ECONOMY WAS UNCHANGED IN THE SECOND QUARTER FROM THE PREVIOUS PERIOD SUGGESTING THAT GERMANY'S WORST POSTWAR RECESSION HAD BEEN CHECKED AT THE SAME TIME IT SAID EASTERN GERMANY SHOWED SIGNS OF CONTINUING A GRADUAL RECOVERY FROM THE SHOCK OF UNIFICATION THE MINISTRY DIDN'T PROVIDE PRECISE DATA OR A YEARONYEAR PERFORMANCE FOR THE WESTERN GERMAN ECONOMY IN THE SECOND QUARTER IN THE FIRST QUARTER GROSS DOMESTIC PRODUCT FELL 15 FROM THE FOURTH PERIOD AND SLID 32 FROM THE FIRST QUARTER OF 1992 US ECONOMISTS AND POLICY MAKERS CLOSELY FOLLOW THE HEALTH OF GERMANY'S ECONOMY EUROPE'S LARGEST A PICKUP IN BUSINESS THERE COULD HERALD A TURNAROUND FOR THE CONTINENT AND PROVIDE AN ENGINE FOR GROWTH THAT WOULD BENEFIT THE US IN A MORE SOBERING ANALYSIS THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT PREDICTED A SLUGGISH RECOVERY FOR A GERMAN ECONOMY HANDICAPPED BY SLACK EXPORT DEMAND HIGH COSTS AND NEW TAXES THE PARISBASED INSTITUTION SAID TOTAL GERMAN UNEMPLOYMENT WON'T PEAK UNTIL LATER IN 1994 WHEN IT PREDICTED UNEMPLOYMENT WILL TOTAL 42 MILLION PEOPLE OR 109 OF THE WORK FORCE GERMAN UNEMPLOYMENT TOTALED 35 MILLION IN JULY THE OECD URGED GERMANY TO CONTROL PUBLICSECTOR EXPENDITURE AND WAGES AND IT PRESSED THE BUNDESBANK TO USE EVERY OPPORTUNITY TO BRING DOWN GERMAN INTEREST RATES TO HELP SPUR DEMAND THE OECD SEES WESTERN GERMANY'S ECONOMY FALLING BY AN INFLATIONADJUSTED 32 FOR THE FIRST HALF FROM THE PREVIOUS PERIOD BUT IT EXPECTS THE DECLINE TO SLOW IN THE SECOND HALF WHEN IT BELIEVES GDP COULD SHRINK BY AN ADDITIONAL 18 FROM THE FIRST HALF FOR 1994 THE OECD SEES THE WESTERN GERMAN ECONOMY GROWING BY 17 IN THE FIRST HALF AND 24 IN THE SECOND HALF EASTERN GERMANY'S ECONOMY IS EXPECTED TO GROW 49 THIS YEAR AND 64 IN 1994 WHEN INCLUDING BOTH EAST AND WEST GERMANY'S ECONOMY IS EXPECTED TO SHOW A 19 DECLINE THIS YEAR AND A MILD 14 GROWTH RATE NEXT YEAR THE OECD FORECASTS WERE CONSIDERABLY GLOOMIER THAN THOSE ISSUED BY THE GOVERNMENT AND PRIVATESECTOR ECONOMISTS WHO WIDELY HOLD OUT HOPE FOR A RECOVERY BEGINNING IN THE FOURTH QUARTER SAID AN OECD OFFICIAL WE ARE TAKING INTO ACCOUNT THE WEAKNESS OF THE OVERALL WORLD ECONOMY AND THAT MANY NEGATIVE FACTORS ARE LIKELY TO BE CARRIED OVER INTO THE SECOND HALF GERMANY'S BUNDESBANK WAS EQUALLY GLOOMY ABOUT THE PROSPECT OF A QUICK PICKUP IN GERMANY'S DEPRESSED LABOR MARKETS THE CENTRAL BANK SAID IN ITS LATEST ECONOMIC SURVEY THAT IT TAKES CONSIDERABLE TIME BEFORE JOB MARKETS RESPOND TO ECONOMIC RECOVERY IT ALSO SAID GERMANY'S HIGH HIRING COSTS COULD DETER RECESSIONBRUISED COMPANIES FROM ADDING STAFF IN ITS REPORT THE OECD SAID THE NEXT 18 MONTHS SHOULD SEE SHRINKING DISPOSABLE INCOME AND HIGH UNEMPLOYMENT RATES HOLDING DOWN EXPANSION IN CONSUMER DEMAND DEFLATIONARY FISCAL POLICIES IT SAID ALSO CANNOT BE EXPECTED TO STIMULATE GROWTH THESE POLICIES INCLUDE CUTBACKS IN GOVERNMENT SPENDING LAST JANUARY'S INCREASE IN THE VALUEADDED TAX ON RETAIL GOODS A PLANNED TAX ON PETROLEUM PRODUCTS AND HIGHER SOCIALSECURITY CONTRIBUTIONS IN 1994 CAPPED BY A PLANNED INCOME TAX SURCHARGE IN 1995 BONN'S HOPES FOR AN EXPORTLED RECOVERY ALSO ATTRACTED DOUBTS FROM OECD ECONOMISTS THEY POINTED TO EXPECTED GROWTH IN GERMAN EXPORT MARKETS OF ONLY 25 FOR 1993 AND 5 FOR 1994 MOREOVER THE ABILITY OF GERMAN EXPORTERS TO KEEP PACE WITH EVEN THAT MARKET EXPANSION IS PUT INTO QUESTION BY AN APPRECIATING MARK AND WORSENING COSTCOMPETITIVENESS AT HOME THE RESULT COULD BE FURTHER LOSS OF MARKET SHARE THE OECD WARNED THE OECD POINTED TO FURTHER DELAYS IN A SELFSUSTAINING RECOVERY IN EASTERN GERMANY WHICH IS STILL HEAVILY DEPENDENT ON BONN AID FOR EMPLOYMENT THE OECD SAID EASTERN GERMANY'S RECOVERY HAS BEEN STUNTED BY RAPID WAGE INCREASES THAT HAVE OUTPACED PRODUCTIVITY GROWTH THIS HAS CAUSED EASTERN GERMAN UNIT LABOR COSTS TO ROCKET TO LEVELS 60 ABOVE WESTERN GERMAN COSTS HAMSTRINGING EFFORTS TO COMPETE IN WESTERN MARKETS AND DETERRING INVESTMENT 9308190147 930819 INTERNATIONAL ALLIEDLYONS VENTURE IN INDIA LONDON ALLIEDLYONS PLC FOLLOWING A NUMBER OF COMPETITORS ANNOUNCED A JOINT VENTURE TO PRODUCE AND MARKET LIQUOR IN INDIA ALLIEDLYONS SAID ITS SPIRITS AND WINE DIVISION HIRAM WALKER RECEIVED APPROVAL FROM THE INDIAN GOVERNMENT TO FORM AN EQUAL JOINT VENTURE WITH JAGATJIT INDUSTRIES LTD OF NEW DELHI THE VENTURE WILL BOTTLE SCOTCH WHISKY IN INDIA AND PRODUCE A RANGE OF INDIGENOUS SPIRITS FOR DOMESTIC CONSUMPTION AND EXPORT 9308190146 930819 LITTON TEAM GETS CONTRACT BEVERLY HILLS CALIF LITTON INDUSTRIES INC SAID A TEAM LED BY ITS APPLIED TECHNOLOGY DIVISION RECEIVED A 1221 MILLION CONTRACT FROM THE GOVERNMENT OF GREECE LITTON A PROVIDER OF RESOURCEEXPLORATION SERVICES INDUSTRIALAUTOMATION SYSTEMS AND ELECTRONIC AND DEFENSE SYSTEMS SAID THAT THE TEAM WILL PROVIDE ELECTRONICWARFARE SYSTEMS FOR 80 GREEK AIR FORCE F16 FIGHTERS THE COMPANY SAID THE CONTRACT ALSO INCLUDES A 346 MILLION OPTION FOR ADDITIONAL SYSTEMS AND TEST EQUIPMENT 9308190145 930819 WHO'S NEWS NATIONAL REGISTRY INC NATIONAL REGISTRY INC ST PETERSBURG FLA FUAD ABUZAYYAD A LAWYER WHO HAS REPRESENTED VARIOUS COMPANIES WAS NAMED CHIEF EXECUTIVE OFFICER AND COCHAIRMAN NEW POSTS AT THIS DEVELOPER OF ELECTRONIC IDENTIFICATION SYSTEMS MR ABUZAYYAD WILL SERVE AS COCHAIRMAN WITH J ANTHONY FORSTMANN THE COMPANY'S FOUNDER 9308190144 930819 WHO'S NEWS ROYCE LABORATORIES INC ROYCE LABORATORIES INC MIAMI CHARLES J SIMONS 74 YEARS OLD A MANAGEMENT AND FINANCIAL CONSULTANT WAS ELECTED A DIRECTOR OF THIS PRODUCER OF PHARMACEUTICALS EXPANDING THE BOARD TO EIGHT MEMBERS 9308190143 930819 UNOCAL FIELD NOW PRODUCING LOS ANGELES UNOCAL CORP SAID CRUDEOIL PRODUCTION STARTED AT HORIZON A NEW OIL FIELD IN THE NETHERLANDS SECTION OF THE NORTH SEA OPERATED BY THE COMPANY'S UNOCAL NETHERLANDS BV UNIT THE FIELD IS IN THE P/9 BLOCK 30 MILES OFF THE COAST IN 100 FEET OF WATER PRODUCTION IS EXPECTED TO PEAK AT 18000 BARRELS A DAY IN EARLY 1994 ONCE THE FIVE INITIAL HORIZONTAL WELLS ARE OPERATING PRODUCTION BEGAN THIS WEEK FROM THE FIRST WELL AT 3800 BARRELS A DAY THE OTHER FOUR WELLS ARE SCHEDULED TO BE DRILLED LATER THIS YEAR THE OIL COMPANY SAID 9308190142 930819 WHO'S NEWS METROPOLITAN LIFE INSURANCE CO METROPOLITAN LIFE INSURANCE CO NEW YORK THOMAS PYLE 53 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF METLIFE'S HMO SUBSIDIARY METLIFE HEALTHCARE CORP A NEW POSITION EFFECTIVE MIDSEPTEMBER METLIFE'S HMOS HAVE 370000 MEMBERS HE IS CURRENTLY SENIOR ADVISER TO THE BOSTON CONSULTING GROUP AND WAS FORMERLY CHIEF EXECUTIVE OF HARVARD COMMUNITY HEALTH PLAN AN HMO WITH 500000 MEMBERS 9308190141 930819 REED ELSEVIER ACQUISITION TALKS LONDON ANGLODUTCH PUBLISHING GROUP REED ELSEVIER PLC SAID IT HOPES TO COMPLETE SOON ITS PLAN TO BUY THE ASSETS OF OFFICIAL AIRLINE GUIDES REED ELSEVIER SAID THAT CONTRACT NEGOTIATIONS ARE UNDER WAY WITH THE JOINT ADMINISTRATORS OF MAXWELL COMMUNICATION CORP AND THAT THEY SHOULD BE COMPLETED WITHIN TWO TO THREE WEEKS REED ELSEVIER LAUNCHED A 425 MILLION BID ON MAY 11 FOR OAG WHICH PUBLISHES US AIRLINES' SCHEDULES REED ELSEVIER ALREADY PUBLISHES EUROPEAN AIRLINE DATA IN ITS ABC WORLD AIRLINES GUIDE THE FINAL STAGES OF DUEDILIGENCE WORK WILL SHORTLY BE COMPLETED REED ELSEVIER SAID A FULL ANNOUNCEMENT WILL BE MADE ONCE CONTRACTS HAVE BEEN SIGNED 9308190140 930819 WHO'S NEWS MCI COMMUNICATIONS CORP MCI COMMUNICATIONS CORP WASHINGTON ROY C NASH 51 YEARS OLD WAS NAMED CHIEF FINANCIAL AND INFORMATION OFFICER AND MIKE READ 45 SENIOR VICE PRESIDENT FOR WORLDWIDE PLANNING AND OPERATIONS OF A NEW JOINT VENTURE WITH BRITISH TELECOMMUNICATIONS PLC TO PROVIDE GLOBAL TELECOMMUNICATIONS SERVICES MR NASH HAS BEEN MCI VICE PRESIDENT AND CONTROLLER MR READ HAS BEEN GLOBAL NETWORKS DIRECTOR FOR BRITISH TELECOM 9308190139 930819 WHO'S NEWS SCECORP SCECORP ROSEMEAD CALIF EDWARD R MULLER 41 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE MISSION ENERGY CO UNIT OF THIS UTILITY HOLDING COMPANY MR MULLER CURRENTLY VICE PRESIDENT CHIEF FINANCIAL OFFICER GENERAL COUNSEL AND SECRETARY OF WHITTAKER CORP A LOS ANGELES AEROSPACE CONCERN WILL SUCCEED ALAN J FOHRER 42 SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF SCECORP WHO HAS SERVED AS CHIEF EXECUTIVE OF MISSION ON AN INTERIM BASIS SINCE APRIL 9308190138 930819 WHO'S NEWS US SHOE CORP US SHOE CORP CINCINNATI MARK LOWENBERG 41 YEARS OLD WAS NAMED PRESIDENT OF THE COMPANY'S BELEAGURED CASUAL CORNER DIVISION MR LOWENBERG FORMER PRESIDENT OF MERCHANDISING IN THE EAST FOR RH MACY & CO SUCCEEDS NOEL DAVIDSON 61 WHO RETIRED IN JUNE CASUAL CORNER WITH 721 STORES IS THE LARGEST DIVISION IN THE US SHOE WOMEN'SAPPAREL RETAILING GROUP ANALYSTS HAVE CRITICIZED THE DIVISION WHICH HAS TURNED IN POOR PERFORMANCE RECENTLY AS LACKING A CORE MARKETING CONCEPT 9308190137 930819 CREDIT MARKETS US LONG YIELD HITS NEW 16YEAR LOW OF 625 BUT OTHER TREASURY SECURITIES FAIL TO KEEP PACE BY THOMAS D LAURICELLA AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE BENCHMARK 30YEAR TREASURY BOND CONTINUED ITS EXTRAORDINARY RUN TO LOWER YIELDS YESTERDAY BUT THE REST OF THE TREASURY MARKET LAGGED BEHIND THE 30YEAR BOND'S YIELD DROPPED TO 625 FROM 631 ON TUESDAY THAT IS THE LOWEST SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE 30YEAR BOND IN 1977 ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS YIELD ROSE 3/4 POINT OR 750 FOR A BOND WITH A 1000 FACE VALUE TO 99 29/32 THE 10YEAR NOTE'S YIELD DROPPED TO 567 FROM 571 BEFORE THIS SUMMER THE LAST TIME THE YIELD ON THE 10YEAR NOTE WAS THIS LOW WAS IN THE SPRING OF 1971 MUNICIPALITIES AND CORPORATIONS TOOK ADVANTAGE OF THE LOW YIELDS BY SELLING MORE THAN 35 BILLION OF NEW DEBT SECURITIES YESTERDAY MARKET WATCHERS STRESSED THAT THE NEW 625 30YEAR BOND SOLD LAST WEEK SEEMS TO BE IN A SEPARATE WORLD FROM THE REST OF THE SPECTRUM OF TREASURY ISSUES NO FRESH NEWS WAS BEHIND THE MARKET'S GAINS YESTERDAY DEALERS SAID INSTEAD THE IMPROVEMENT REFLECTED THE CONTINUING BULLISH TONE IN THE MARKET AND A FEW SPECIAL FACTORS OVERALL THE MARKET MAINTAINS AN UPBEAT TONE SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS EVERYTHING IS PUSHING HIGHER CONSISTENT WITH THE MOST RECENT WAVE OF OPTIMISM THAT HAS PREVAILED INTERMEDIATE TREASURY SECURITIES WERE GIVEN A BOOST BY A RENEWED ROUND OF BUYING RELATED TO MUNICIPAL DEFEASANCE PROGRAMS IN A DEFEASANCE PLAN STATE AND LOCAL GOVERNMENTS ISSUE NEW SECURITIES TO REFUND OLDER HIGHERINTEREST DEBT BUT UNTIL THE OUTSTANDING SECURITIES CAN BE CALLED THE PROCEEDS FROM THE NEW ISSUANCE ARE INVESTED IN TREASURYS SHORTTERM AND INTERMEDIATETERM SECURITIES WERE ALSO BOOSTED BY WIDESPREAD TALK THAT THE FEDERAL RESERVE WAS CONDUCTING UNANNOUNCED PURCHASES OF TREASURYS ON BEHALF OF A FOREIGN CENTRAL BANK TRADERS ADDED BUT THE MAIN ACTION TOOK PLACE IN THE LONG BOND WHICH MARKET PARTICIPANTS SAID HAS TAKEN ON A LIFE OF ITS OWN SPECULATIVE TRADERS SEEM TO BE DRIVING BOND YIELDS LOWER AS THEY SNAP UP BONDS AS PART OF COMPLEX TRADING BETS REPORTS OF SUBDUED INFLATION AND A SLUGGISH ECONOMIC RECOVERY HAVE FUELED THE RALLY IN RECENT WEEKS BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF FIXEDRATE INVESTMENTS IF THE ECONOMY REMAINS SLUGGISH BOND INVESTORS REASON INFLATION WILL REMAIN LOW MANY BOND INVESTORS ARE CONVINCED THAT THE HIGHER TAXES OF PRESIDENT CLINTON'S ECONOMIC PACKAGE AND THE COSTS OF REFORMING THE HEALTH CARE SYSTEM WILL FURTHER DEPRESS THE ECONOMY EUPHORIA IN THE BOND MARKET HAS CREATED A HERD MENTALITY SAID HELEN F PETERS HEAD OF TAXABLE FIXED INCOME AT COLONIAL MANAGEMENT ASSOCIATES INC A MUTUAL FUND FIRM INVESTORS SEE RATES DROPPING AND SEE NO REASON NOT TO BE INVOLVED IN THE RALLY SHE SAID BUT CORPORATIONS SEEM TO BE BETTING THAT RATES WON'T GO LOWER YESTERDAY AND TUESDAY ALONE CORPORATIONS RUSHED TO SELL MORE THAN 7 BILLION OF NEW DEBT PAPER IN ORDER TO LOCK IN TODAY'S LOW RATES BY ITSELF NATIONSBANK CORP OF CHARLOTTE NC HAS SOLD 1 BILLION OF NOTES THIS WEEK DEMAND FOR THE NOTES IN THE BANK'S TWO OFFERINGS WAS SO STRONG THAT THE BANK WAS ABLE TO INCREASE THEIR SIZE BY A TOTAL OF 150 MILLION BUT SOME ARE WORRIED THAT THE BOND MARKET MAY HAVE GONE TOO FAR TOO FAST JOSEPH DEANE WHO RUNS THE 21 BILLION SMITH BARNEY SHEARSON MANAGED MUNICIPALS BOND FUND SAID HE SOLD OFF 100 MILLION OF LONGTERM MUNICIPAL BONDS OVER THE PAST TWO DAYS WITH INTEREST RATES SO LOW MR DEANE SEES LITTLE ROOM FOR IMPROVEMENT AND WISHED TO UNLOAD LONGTERM SECURITIES WHICH ARE THE MOST VULNERABLE TO RISING INTEREST RATES WE'VE HAD A TREMENDOUS RALLY HE SAID BUT ADDED THAT THERE IS MUCH MORE DOWNSIDE THAN UPSIDE NOW THE 30YEAR TREASURY BOND IS ABSOLUTELY IN ITS OWN WORLD SAID JAY GOLDINGER A TRADER AT CAPITAL INSIGHT INC IN BEVERLY HILLS CALIF THERE ARE CLEARLY FUNDAMENTAL REASONS TO BE BULLISH ON THE BOND SAY TRADERS BUT TRADING IN THE BOND HAS INCREASINGLY BEEN DRIVEN BY FACTORS UNRELATED TO THE ECONOMY ONE FACTOR IS THE TREASURY DEPARTMENT'S DECISION TO REDUCE THE AMOUNT OF 30YEAR BONDS IT SELLS EVERY YEAR AND TO SHIFT FROM QUARTERLY AUCTIONS TO SEMIANNUAL OFFERINGS AND AT THE SAME TIME MORE AND MORE PORTFOLIO MANAGERS HAVE BEEN SNAPPING UP LONG SECURITIES IN SEARCH OF HIGHER YIELDS ACCORDING TO MR KARYDAKIS OF FIRST CHICAGO THE NOTION OF A SCARCITY PREMIUM BECAUSE OF SUCH FACTORS IS BEHIND MUCH OF THE 625 BOND'S STELLAR RISE SPECULATIVE TRADERS MEANWHILE HAVE BEEN SCRAMBLING TO PLACE A VARIETY OF BETS ON THE IMPACT OF THE SCARCITY PREMIUM THAT RUSH HAS IN TURN ONLY EXAGGERATED THE DIFFERENCE BETWEEN THE 30YEAR BOND'S PERFORMANCE COMPARED TO THE REST OF THE MARKET AMONG THE MOST PREVALANT TRADES IN RECENT WEEKS HAVE BEEN BETS ON THE YIELD GAP WHERE TRADERS HAVE SET UP POSITIONS DESIGNED TO TAKE ADVANTAGE OF A NARROWING OF THE YIELD GAP BETWEEN THE 30YEAR BOND AND SHORTERTERM SECURITIES THOSE TRADES HAVE CENTERED MAINLY ON TRADERS BUYING BONDS AND SELLING TWOYEAR NOTES OR 10YEAR NOTES ANOTHER SIGNIFICANT CHANGE THAT IS REFLECTIVE OF THE PECULIAR CONDITIONS IN THE LONG BOND IS A WIDENING GAP BETWEEN THE YIELD ON THE 625 30YEAR BOND MATURING IN AUGUST 2023 AND THE YIELD ON THE BOND ISSUED BEFORE IT THE 7125 30YEAR BOND THAT MATURES IN FEBRUARY 2023 DURING WHENISSUED TRADING LAST WEEK THE NEW 30YEAR BOND YIELDED 007 PERCENTAGE POINT LESS THAN THE 7125 BOND BUT STRONG DEMAND FOR THE 625 ISSUE HAS WIDENED THE GAP TO 014 PERCENTAGE POINT THE CORPORATE MARKET SAW A FLURRY OF NEW ISSUANCE ALTHOUGH TRADERS SAID DEALS PRICED OFF THE RECORDLOW YIELDS OF THE NEW 30YEAR TREASURY BOND WERE RUNNING INTO TROUBLE IN SECONDARY TRADING SLIGHTLY MORE THAN 2 BILLION OF CORPORATE DEBT WAS PRICED YESTERDAY WITH A NUMBER OF FIRSTTIME ISSUERS HITTING THE MARKET THERE WAS ALSO OVER 1 BILLION OF AGENCY PAPER PRICED THE SECONDARY MARKET FOR INVESTMENTGRADE BONDS SAW MODEST ACTIVITY AS PRICES FOLLOWED TREASURYS HIGHER A NUMBER OF THE RECENTLY ISSUED DEALS BEGAN TRADING YESTERDAY AND THOSE PRICED AT YIELD SPREADS OVER THE CURRENT ISSUE OF THE 30YEAR BOND HAD TROUBLES INVESTORS CONTINUE TO DEMAND THAT BONDS BE PRICED AT SPREADS OVER THE OLD 30YEAR TREASURY WHICH IS YIELDING 64 THAT IS ABOUT 014 PERCENTAGE POINT HIGHER THAN THE CURRENT 30YEAR TREASURY BOND WHICH WAS AUCTIONED BY THE TREASURY LAST WEEK AS A RESULT THE BONDS PRICED OFF THE NEW 30YEAR TREASURY HAVE TRADED DOWN IN THE MARKET AND YIELD SPREADS HAVE WIDENED TRADERS SAID FOR EXAMPLE SCOTT PAPER CO PRICED 30YEAR DEBT LAST WEEK AT 089 PERCENTAGE POINT OVER THE NEWLY ISSUED 30YEAR TREASURY THE PAPER TRADED YESTERDAY AT A SPREAD OF 098 PERCENTAGE POINT TO YIELD 728 ONE TRADER SAID SYNDICATE DESKS SELLING CORPORATE BONDS ARE LIKELY TO REMEDY THE SITUATION BY PRICING NEW ISSUES AT SPREADS OVER THE OLDER 30YEAR BOND AS SOON AS NEXT WEEK SAY ANALYSTS IN THE JUNK BOND MARKET SECONDARY TRADING WAS RELATIVELY QUIET TRANSTEXAS GAS CORP'S 500 MILLION OFFERING OF SENIOR SECURED NOTES SOLD LATE TUESDAY PERFORMED WELL IN THE SECONDARY MARKET THE NOTES PRICED TUESDAY AT PAR TO YIELD 105 TRADED UP TWO POINTS TO 102 TO YIELD 1009 SAID ONE TRADER MOST OF THE MUNICIPAL BOND MARKET ACTIVITY YESTERDAY TOOK PLACE IN THE NEWISSUE SECTOR WHERE MORE THAN 15 BILLION OF SECURITIES WERE PRICED THE NEW SUPPLY WAS DOMINATED BY THE REFUNDING BONDS THAT HAVE BEEN IN ABUNDANCE ALL YEAR DUE TO THE CONTINUING DECLINE IN US INTEREST RATES ALTHOUGH MUNICIPAL SPECIALISTS HAVE PREDICTED FOR SOME TIME THAT THE FLOW OF REFUNDING BONDS WILL EVENTUALLY BEGIN TO EBB A SIGNIFICANT SLOWDOWN HAS YET TO BE SEEN YESTERDAY'S OFFERINGS INCLUDED MASSACHUSETTS' 1993 SERIES C GENERAL OBLIGATION REFUNDING BONDS WHICH WERE SOLD THROUGH A BEAR STEARNS & CO GROUP DEMAND FOR THE BONDS WAS SO STRONG THAT AFTER THE ORIGINAL PRICING THE UNDERWRITING GROUP WAS ABLE TO INCREASE THE SIZE OF THE OFFERING TO 8415 MILLION FROM 6822 MILLION AND LOWER A NUMBER OF YIELDS FROM 002 TO 005 PERCENTAGE POINT FOLLOWING THAT REPRICING YIELDS RANGE FROM 410 IN 1998 TO 530 IN 2008 THE INITIAL SCALE OF YIELDS WAS 415 IN 1998 TO 530 IN 2008 IN SECONDARY DEALINGS PRICES WERE GENERALLY UNCHANGED TO 3/8 POINT HIGHER AT THE CLOSE THE SOUTH BROWARD HOSPITAL DISTRICT OF FLORIDA'S 5375 HOSPITAL REVENUE REFUNDING BONDS OF 2013 CLOSED 1/8 POINT FIRMER AT 98 3/4 TO YIELD 546 PRICES OF CURRENTCOUPON SECURITIES ROSE ABOUT 1/8 POINT TO HIT LEVELS ABOVE PAR AS INVESTORS FAILED TO SHOW INTEREST IN ALMOST EVERY OTHER ASPECT OF THE MORTGAGEBACKED MARKET THE STRENGTH OF CURRENT COUPONS MORTGAGES WITH 65 COUPONS LARGELY RESULTS FROM THE LACK OF SECURITIES BACKED BY NEWLY ORIGINATED LOANS IN THE MARKET WITH RATES CONTINUING TO FALL MORTGAGE BANKERS HAVEN'T HAD AN INCENTIVE TO SELL THEIR LOANS CRIMPING SUPPLY DEMAND FOR CURRENT COUPONS COMES FROM DEALERS WHO NEED THE COLLATERAL TO BACK REAL ESTATE MORTGAGE INVESTMENT CONDUITS IN THE SECONDARY MARKET GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 ISSUES FOR SEPTEMBER DELIVERY ENDED 4/32 HIGHER AT 100 6/32 FEDERAL HOME LOAN MORTGAGE CORP 65 ISSUES ENDED 5/32 HIGHER AT 100 8/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 ISSUES ENDED 5/32 HIGHER AT 100 3/32 BUT EVERY OTHER PART OF THE MARKET REMAINS UNATTRACTIVE AS THE YIELD CURVE FLATTENS AND PREPAYMENT FEARS BECOME MORE INTENSE PREPAYMENTS HURT PREMIUMPRICED HIGHCOUPON MORTGAGE SECURITIES BECAUSE INVESTORS TYPICALLY PAY MUCH MORE THAN THE PAR PRICE THAT IS RETURNED WHEN THE SECURITIES ARE PREPAID THERE WAS SOME ACTION IN THE PRIMARY MARKET WITH FREDDIE MAC ANNOUNCING INCREASES TO TWO ISSUES TOTALING 340 MILLION THE AGENCY ALSO ANNOUNCED A NEW 3049 MILLION REMIC SERIES 1589 BACKED BY 625 30YEAR RELOCATION LOANS JACQUELINE DOHERTY CONTRIBUTED TO THIS ARTICLE 9308190135 930819 WHO'S NEWS QUANTUM HEALTH RESOURCES INC QUANTUM HEALTH RESOURCES INC ORANGE CALIF ROBERT J ERRA 50 YEARS OLD WAS ELECTED A DIRECTOR SUCCEEDING JOHN PAPPAJOHN WHO DIDN'T SEEK REELECTION LAST YEAR MR ERRA IS SENIOR VICE PRESIDENT DIRECTOR CLINIC OPERATIONS SCRIPPS CLINIC & RESEARCH FOUNDATION QUANTUM PROVIDES SERVICES TO INDIVIDUALS AFFECTED BY CERTAIN CHRONIC DISEASES 9308190134 930819 INTERNATIONAL CREDIT SUISSE SAYS PROFIT ROSE 67 IN THE FIRST HALF BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL ZURICH CONTINUING A WAVE OF STRONG EARNINGS REPORTS FROM SWITZERLAND'S LEADING BANKS CREDIT SUISSE SAID ITS GROSS PROFIT SURGED 67 TO 24 BILLION SWISS FRANCS 16 BILLION IN THE FIRST HALF THE UNIT OF CS HOLDING AG PREDICTED GROSS PROFIT BEFORE TAXES AND PROVISIONS FOR BAD DEBTS WILL REMAIN HIGH IN THE SECOND HALF THANKS TO A STRONG POSITION IN ALL MAJOR FINANCIAL MARKETS IT SAID 34 OF FIRSTHALF GROSS PROFIT WAS GENERATED ABROAD WE ANTICIPATE GOOD PROFITS FOR 1993 THE BANK SAID BUT IT ADDED THE DIFFICULT BUSINESS CLIMATE AND CONTINUING STRUCTURAL ADJUSTMENTS NOTABLY IN THE SWISS ECONOMY MEAN THAT SUBSTANTIAL PROVISIONS WERE AGAIN NECESSARY IN THE HALF NET INCOME WILL BE ANNOUNCED THIS MONTH A SPOKESMAN SAID THE BANK'S STRONG EARNINGS GROWTH WAS NO SURPRISE AFTER UNION BANK OF SWITZERLAND DAZZLED ANALYSTS LAST WEEK WITH THE ANNOUNCEMENT OF AN 89 JUMP IN AFTERTAX PROFIT TO 129 BILLION FRANCS FOR THE FIRST HALF DESPITE AN INCREASE OF MORE THAN ONE BILLION FRANCS IN PROVISIONS FOR COUNTRY RISK AND DOUBTFUL DEBTS SWISS BANK CORP THE THIRD OF THE COUNTRY'S BIG THREE BANKS IS EXPECTED TO FOLLOW THE TREND WHEN IT REPORTS FIRSTHALF RESULTS ON SEPT 2 SWITZERLAND'S UNIVERSAL BANKS WHICH ENGAGE IN ALL SECTORS OF COMMERCIAL AND PRIVATE BANKING SAY THEY ARE BENEFITING FROM DYNAMIC SECURITIES MARKETS IN MANY COUNTRIES VOLATILE FOREIGNEXCHANGE TRADING IN THE WAKE OF EUROPE'S CURRENCY TURMOIL AND LOWER MONEYMARKET RATES THE DECISION BY CREDIT SUISSE NOT TO ANNOUNCE A NET INCOME FIGURE FOR THE HALF DISAPPOINTED MANY ANALYSTS THE GROSSPROFIT RESULT IS VERY GOOD SAID LOMBARD ODIER & CIE BANK ANALYST JEANMAX VILLARS BUT WE WOULD LIKE TO KNOW WHAT COMES AFTER PROVISIONS AND TAXES IN WEDNESDAY'S EARNINGS REPORT CREDIT SUISSE TOOK PAINS TO POINT OUT THAT ITS MARRIAGE WITH SWISS VOLKSBANK IS A HAPPY ONE CS HOLDING TOOK OVER SWITZERLAND'S FOURTHLARGEST BANK IN JANUARY THE HALFYEARLY STATEMENT SEEMS TO CONFIRM THE TWO BANKS ARE WORKING WELL TOGETHER SAID PICTET & CIE BANK ANALYST DANIEL KOENIG IN THE FIRST HALF CREDIT SUISSE'S ASSETS INCLUDING VOLKSBANK ROSE 33 TO 229 BILLION FRANCS FROM 173 BILLION FRANCS LENDING GREW 29 TO 1293 BILLION FRANCS FROM 999 BILLION FRANCS CUSTOMER DEPOSITS GAINED 34 TO 1525 BILLION FRANCS FROM 1138 BILLION FRANCS 9308190133 930819 FINANCING BUSINESS AMERICAN ANNUITY GROUP INC AMERICAN ANNUITY GROUP INC SAID IT COMPLETED THE SALE OF 100 MILLION PRINCIPAL AMOUNT OF 9 1/2 SENIOR NOTES DUE 2001 THE CINCINNATI COMPANY USED THE PROCEEDS TO PAY OFF A BANK TERM LOAN OF 95 MILLION AMERICAN ANNUITY SELLS TAXDEFERRED ANNUITIES TO TEACHERS AND OTHER EMPLOYEES OF NONPROFIT INSTITUTIONS 9308190132 930819 LETTERS TO THE EDITOR DUPONT ANSWERS FUNGICIDE CHARGES YOUR JUNE 30 ARTICLE PAINTS A DAMAGING AND MISLEADING PICTURE OF DUPONT AND ITS PRODUCT BENLATE DF FUNGICIDE THE MATTERS COVERED IN THE ARTICLE STRETCH OVER A 10YEAR PERIOD INVOLVING DUPONT FACILITIES IN THE US AND EUROPE IN EACH INSTANCE CITED THE JUDGMENTS AND THE OPINIONS OFFERED REFLECT ONLY THE THINKING AT THE TIME CERTAINLY NOT OUR CURRENT UNDERSTANDING OF WHAT HAPPENED THIS IS A CRUCIAL POINT BECAUSE INACCURACIES ORIGINALLY PRESENTED AS TRUTH IN INTERNAL DOCUMENTS WERE LATER FOUND TO BE ERRONEOUS THE ARTICLE MADE SPECIFIC ACCUSATIONS ABOUT 1983 GROWER COMPLAINTS IN BELGIUM THE STORY REPORTED THAT PLANTS WERE DAMAGED BY BENLATE IN HOT HUMID CONDITIONS AND THAT DUPONT VERIFIED THIS BUT DID NOTHING TO PROTECT CUSTOMERS IN TRUTH THE PLANTS AFFECTED WERE OF ONE SPECIES OF RUBBER PLANT WHILE OTHERS IN THE SAME GREENHOUSE WERE UNAFFECTED THE PLANTS WERE WETTED DOWN AND KEPT AT 65 DEGREES FAHRENHEIT IN SEALED GREENHOUSES THE CONDITIONS WERE VERY UNLIKE FLORIDA'S GROWING CONDITIONS THE STORY ALSO ALLEGES THAT DUPONT KNEW OF AND IGNORED THE FACT THAT BENLATE WAS CONTAMINATED BY SULFONYLUREA HERBICIDES IN 1987 THAT WAS ATTRIBUTED TO AN INTERNAL MEMO WRITTEN IN 1991 BY MILT WARDEH A DUPONT EMPLOYEE MR WARDEH WHEN ASKED ABOUT THE MEMO SAID HE HAD MISTAKENLY REFERRED TO SULFONYLUREAS WHEN HE MEANT TO REFER TO ATRAZINE CONTAMINATION WE DID EXPERIENCE AND REPORTED ATRAZINE CONTAMINATION IN 1989 AND 1991 THE ARTICLE ALSO REFERS TO ANOTHER DOCUMENT IN THE CASE AND SUGGESTS THAT DUPONT WOULD NOT ACKNOWLEDGE A CAUSE OF THE CROP DAMAGE EVEN IF WE KNEW THAT IS PATENTLY UNTRUE THE INTENT OF THE MEMO WRITTEN BY OUR OUTSIDE COUNSEL WAS TO DEVELOP A POSITION IN REGARD TO THE HANDLING OF INSURANCE COVERAGE IT HAD NOTHING TO DO WITH CROP CLAIMS BY CUSTOMERS FINALLY THE STORY ALLEGES THAT DUPONT WITHHELD THE FACT THAT FEES WERE PAID TO THE SIX SCIENTISTS WHO CONCURRED WITH DUPONT'S FINDINGS THAT BENLATE DID NOT CAUSE THE DAMAGE CLAIMED IN FLORIDA AND ELSEWHERE IN 1990 AND 1991 WE ACKNOWLEDGED PUBLICLY ALL FEES PAID WHEN WE ANNOUNCED IN NOVEMBER 1992 THE RESULTS OF OUR 12 MILLION RESEARCH INTO THE CLAIMS OF BENLATE DAMAGE WE HAVE WAITED UNTIL NOW TO RESPOND TO THIS ARTICLE BECAUSE WE WANTED TO HAVE A TRIAL UNDER WAY BEFORE PUBLICLY ADDRESSING ACCUSATIONS 9308190131 930819 INTERNATIONAL JAPANESE STEEL OUTPUT RISES TOKYO JAPAN'S STEEL PRODUCTION WAS UP IN JULY BUT THE OUTLOOK HAS WORSENED THE JAPAN IRON AND STEEL FEDERATION SAID OUTPUT TOTALED 8470000 METRIC TONS UP 38 FROM THE YEAREARLIER MONTH A METRIC TON IS 22046 POUNDS AS HAS BEEN THE CASE IN RECENT MONTHS JAPAN'S STEEL PRODUCTION INCREASED MAINLY BECAUSE OF DEMAND FROM CHINA A FEDERATION SPOKESMAN SAID BUT AS THE EXPANSION OF CHINA'S ECONOMY IS SHOWING SIGNS OF SLOWING JAPANESE STEELMAKERS PREDICT THAT DEMAND FROM CHINA WILL DECLINE DURING THE SECOND HALF OF THIS FISCAL YEAR HE SAID THE HALF BEGINS OCT 1 MEANWHILE DOMESTIC DEMAND FOR STEEL IS WEAKENING FURTHER AS THE OUTLOOK FOR SUCH USER INDUSTRIES AS CAR MAKERS AND CONSTRUCTION COMPANIES HAS BEEN WORSENING HE SAID 9308190129 930819 BT SHIPPING UNIT TO PAY IN SPILL NEW YORK NAUTILUS MOTOR TANKER CO OF LONDON A SUBSIDIARY OF BT SHIPPING LTD OF BERMUDA AGREED TO PAY 4 MILLION IN NATURAL RESOURCE DAMAGES AND COSTS TO NEW YORK NEW JERSEY AND THE US TO SETTLE A DISPUTE OVER AN OIL SPILL THE TANKER BT NAUTILUS SPILLED MORE THAN 250000 GALLONS OF OIL INTO NEW YORK HARBOR ON JUNE 7 1990 FORCING THE CLOSURE OF THE KILL VAN KULL TO SHIPPING FOR THREE DAYS THE OIL SPILL DAMAGED WETLANDS AND HARMED SUCH ANIMALS AS THE ENDANGERED PIPING PLOVERS IN NEW YORK AND NEW JERSEY OFFICIALS FROM BOTH STATES SAID ACCORDING TO THE NEW YORK ATTORNEY GENERAL'S OFFICE NAUTILUS MOTOR TANKER INITIALLY PAID ABOUT 20 MILLION TO CLEAN UP THE SPILL 9308190127 930819 UNDERWRITERS BUY ALAMCO SHARES CLARKSBURG WVA ALAMCO INC SAID UNDERWRITERS PURCHASED AN ADDITIONAL 405000 SHARES OF ALAMCO COMMON STOCK AT 550 EACH TO COVER OVERALLOTMENTS THE COMPANY SAID IT SOLD 71404 SHARES AND 333596 SHARES WERE SOLD BY PNC BANK NA A UNIT OF PNC BANK CORP PITTSBURGH PRINCIPAL/EPPLER GUERIN & TURNER INC DALLAS TEXAS IS THE MANAGING UNDERWRITER ALAMCO IS AN INDEPENDENT PRODUCER OF GAS AND OIL IN THE APPALACHIAN BASIN 9308190126 930819 WHO'S NEWS COMPUTER SCIENCES CORP COMPUTER SCIENCES CORP EL SEGUNDO CALIF JAMES A CHAMPY WAS NAMED PRESIDENT OF THE COMMERCIAL CONSULTING GROUP BASED IN CAMBRIDGE MASS AND WAS ELECTED A VICE PRESIDENT OF THE PARENT AN INFORMATION TECHNOLOGY SERVICES CONCERN HE SUCCEEDS PAUL J CROWLEY 62 YEARS OLD WHO RETIRED THIS YEAR MR CHAMPY 51 WAS SENIOR VICE PRESIDENT OF THE GROUP AND CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CSC INDEX THE COMPANY'S MANAGEMENT CONSULTING AND BUSINESS REENGINEERING ARM DAVID G ROBINSON 47YEAROLD PRESIDENT OF CSC INDEX ASSUMES EXECUTIVE RESPONSIBILITY FOR CSC INDEX THE TITLES OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER WERE ELIMINATED 9308190125 930819 BUSINESS BRIEF NEDLLOYD GROEP NV NET LOSS OF 609 MILLION IS REPORTED FOR FIRST HALF DUTCH TRANSPORT GROUP NEDLLOYD GROEP NV SWUNG TO A NET LOSS OF 116 MILLION GUILDERS 609 MILLION IN THE FIRST HALF FROM A PROFIT OF ONE MILLION GUILDERS A YEAR EARLIER REVENUE WAS DOWN 39 TO 319 BILLION GUILDERS FROM 332 BILLION GUILDERS THE ROTTERDAM NETHERLANDS COMPANY ALSO FORECAST IT WILL POST A LOSS FOR THE FULL YEAR THOUGH A CLEAR IMPROVEMENT IN FINANCIAL RESULTS OVERALL IS EXPECTED NEDLLOYD HAD A LOSS OF 58 MILLION GUILDERS IN 1992 ON 67 BILLION GUILDERS OF REVENUE THE NET LOSS OF 116 MILLION GUILDERS IS VERY UNSATISFYING NEDLLOYD SAID A NEDLLOYD SPOKESMAN SAID THE BIG PROBLEM FOR THE COMPANY WAS ITS SHIPPING BUSINESS WHICH WAS UNDERMINED BY INTENSE DOWNWARD PRESSURE ON TARIFFS INDEED THE SHIPPING SECTOR LOST 57 MILLION GUILDERS IN THE FIRST QUARTER MAINLY DUE TO WEAKNESS IN JANUARY AND FEBRUARY 9308190124 930819 GENERAL TIRE CANCELS NORTH CAROLINA PROJECT BACKED BY EXOFFICIAL AKRON OHIO GENERAL TIRE INC KILLED PLANS TO BUILD AN OPERATIONS AND TECHNICAL CENTER IN CHARLOTTE NC A DAY AFTER ITS KEY SUPPORTER RESIGNED IN A DISPUTE WITH THE CHIEF EXECUTIVE OFFICER YESTERDAY'S CANCELLATION FOLLOWING TWO RESIGNATIONS THE PREVIOUS DAY WAS A FURTHER SIGN OF TURMOIL AT GENERAL A UNIT OF GERMANY'S CONTINENTAL AG THE COMPANY HAD POSTED LOSSES IN 1991 AND 1992 AMID FIERCE COMPETITION IN THE WORLDWIDE TIRE MARKET IN A STATEMENT GENERAL SAID IT CANCELED THE 12 MILLION PROJECT BECAUSE OF THE UNCERTAIN OUTLOOK FOR THE DOMESTIC AND EUROPEAN ECONOMIES AS WELL AS REQUIREMENTS FOR CONTINUING INVESTMENTS IN OUR OPERATIONS BUT EW BUD KISSEL WHO RESIGNED TUESDAY AS EXECUTIVE VICE PRESIDENT OF GENERAL'S PASSENGER AND LIGHT TRUCK DIVISION SAID THE COMPANY'S DECISION WAS A DIRECT RESULT OF HIS DEPARTURE I HAD CHAMPIONED THAT AND TOTALLY SUPPORTED THAT MR KISSEL SAID IN AN INTERVIEW THE IDEA BEHIND MOVING 200 TECHNICAL AND SUPPORT PERSONNEL TO CHARLOTTE WHERE GENERAL HAS A MANUFACTURING PLANT FROM ITS HEADQUARTERS IN AKRON WAS TO ACHIEVE WHAT MR KISSEL CALLED TOTAL SYNERGY BETWEEN MANUFACTURING AND TECHNICAL WORKERS MR KISSEL ALSO SAID HE AND ALAN OCKENE CHIEF EXECUTIVE OFFICER DISAGREED OVER ISSUES INVOLVING DECENTRALIZATION AND CAPITAL SPENDING WHICH MR KISSEL SAID IS DIFFICULT TO COME BY RIGHT NOW A GENERAL SPOKESMAN SAID YESTERDAY'S ANNOUNCEMENT AND MR KISSEL'S RESIGNATION HAD NO CONNECTION ALEXANDER J MACLEAN SENIOR VICE PRESIDENT OF SALES AND MARKETING ALSO RESIGNED TUESDAY THE COMPANY THEN SAID BOTH MEN RESIGNED OVER POLICY DIFFERENCES MR MACLEAN HAS BEEN UNAVAILABLE FOR COMMENT GENERAL STILL IS GOING FORWARD WITH PLANS TO BUILD A 7 MILLION TECHNICAL CENTER FOR HIGHWAY TRUCK TIRES IN MT VERNON ILL GENERAL EXPECTS TO BREAK EVEN THIS YEAR 9308190123 930819 CORPORATE FOCUS DIGITAL EQUIPMENT IS LOOKING TO TAP INTO NEW GROWTH ANALYSTS SEE TURNAROUND BUT FINDING REVENUE COULD BE A CHALLENGE BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL MAYNARD MASS DIGITAL EQUIPMENT CORP PROVED IT CAN BECOME PROFITABLE AGAIN BY SLASHING COSTS BUT IGNITING NEW REVENUE GROWTH WILL BE EVEN HARDER DIGITAL'S 113 MILLION PROFIT FOR THE FOURTH QUARTER ENDED JULY 3 ITS FIRST IN TWO YEARS AROSE FROM DRACONIAN CUTTING IN WHICH THE COMPANY FIRED ITS FOUNDER SHED ONE IN FIVE JOBS SHUTTERED FACTORIES AND REPLACED MUCH OF TOP MANAGEMENT YET ANALYSTS SEE A ROLLERCOASTER COMEBACK FOR DIGITAL INCLUDING A LOSS THIS QUARTER AS THE RECESSION SAPS RESULTS IN EUROPE THE SOURCE OF HALF THE COMPANY'S REVENUE FOR THE LONG HAUL THE NO 2 US COMPUTER MAKER IS COUNTING ON A REORGANIZED SALES FORCE MOTIVATED BY NEW INCENTIVES TO PUSH MORE PRODUCTS OUT THE DOOR IT'S ALSO BROADENING ITS SERVICES BUSINESS INTO SUCH AREAS AS ADVISING COMPANIES ON HOW TO BUILD COMPUTER NETWORKS EVEN IF DIGITAL PRODUCTS AREN'T INVOLVED AND AFTER A LONG DEPENDENCY ON ITS VAX MINICOMPUTERS WITH PROPRIETARY SOFTWARE DIGITAL HOPES THAT NEW CHIP TECHNOLOGY WILL HOLD ITS CORPORATE CUSTOMERS WHILE GIVING IT AN EDGE IN FASTGROWING PERSONAL COMPUTER WORKSTATION AND NETWORKING BUSINESSES FINDING NEW REVENUE HOWEVER COULD BE A BIGGER CHALLENGE COMPETITION IS MORE INTENSE THAN EVER AS COMPUTERS BECOME MORE OF A COMMODITY AND PROFIT MARGINS SHRIVEL DIGITAL'S CHALLENGE IS TO BUILD REVENUE IN NEW AREAS FASTER THAN MINICOMPUTERS DECLINE WHILE IT HAS INSTALLED A HUGE BASE OF THESE MACHINES PRICED FROM 10000 TO AS MUCH AS 1 MILLION MOST OF THE DEMAND TODAY IS FOR SMALLER SYSTEMS ANOTHER CHALLENGE IS TO RECHARGE DIGITAL'S DEMORALIZED SALES FORCE NOW UNDER EDWARD E LUCENTE A FORMER TOP IBM EXECUTIVE WHO IS SALES AND MARKETING CHIEF WE'VE STOPPED THE BLEEDING SAYS ROBERT B PALMER WHO RAN DIGITAL'S CHIPMAKING OPERATION BEFORE BEING THRUST INTO THE CHIEF EXECUTIVE OFFICER'S JOB LAST FALL BUT THAT'S NOT A TURNAROUND WE NEED TO SHOW A FEW QUARTERS OF CONSISTENT PROFITABLE GROWTH MR PALMER ADDS THAT WE'RE DONE WITH THE MAJOR DOWNSIZING IF SALES HOLD STEADY INDEED DIGITAL SEEMS BETTER OFF NOW THAN THE INDUSTRY'S WOUNDED LEADER INTERNATIONAL BUSINESS MACHINES CORP WHICH HAS ANNOUNCED FURTHER DEEP CUTS DIGITAL'S STRATEGY REACHES BEYOND COST CUTTING AND IS TIED TO ALPHA A NEW MICROCHIP DESIGN THAT ANALYSTS SAY IS THE MOST POWERFUL IN THE INDUSTRY IN MY 30 YEARS AT IBM WE HAD TRAILING TECHNOLOGY AND PRODUCTS AND WE MASKED IT WITH A WORLDCLASS SALES FORCE SAYS MR LUCENTE NOW I HAVE WORLDCLASS TECHNOLOGY TO SELL MR LUCENTE IS TRYING TO FIX THE PROBLEMS OF THE SALES FORCE BY REORGANIZING IT INTO GROUPS THAT SELL TO SPECIFIC INDUSTRIES SUCH AS HEALTH CARE AND BANKING AN INCENTIVE PAY STRUCTURE TOOK EFFECT ON JULY 4 DIGITAL HAD BEEN THE ONLY MAJOR COMPUTER MAKER THAT DIDN'T PAY ITS SALESPEOPLE COMMISSIONS SHORTLY AFTER MR LUCENTE WAS HIRED IN APRIL HIS NEW BOSS MR PALMER SAID THE SALES FORCE WAS PROBABLY THE LEAST PRODUCTIVE IN THE WORLD IN THE FIELD WHERE THE PAIN OF LAYOFFS IS STILL FRESH SOME DIGITAL PEOPLE SAY MIDLEVEL MANAGERS WERE SPARED WHILE FRONTLINE WORKERS WERE AXED MR LUCENTE ACKNOWLEDGES THAT THERE ARE STILL TOO MANY MANAGERS INDEED ANALYSTS THINK MR PALMER WILL KEEP CUTTING THE PAYROLL WHICH STOOD AT 94200 ON JULY 3 THEY'LL WORK IT DOWN TO 90000 BY DECEMBER SAYS BARRY F WILLMAN AN ANALYST AT SANFORD C BERNSTEIN & CO ONCE COSTS ARE UNDER CONTROL HOWEVER DIGITAL HAS SEVERAL PROSPECTS FOR REVENUE GROWTH ITS SERVICE BUSINESS INCLUDING NETWORK DESIGN AND MAINTENANCE HAS EXPANDED SHARPLY AND NOW ACCOUNTS FOR NEARLY HALF OF REVENUE PERSONAL COMPUTER SALES HAVE JUMPED TO ALMOST 900 MILLION LAST YEAR FROM NEXT TO NOTHING TWO YEARS AGO WHILE SALES OF HIGHCAPACITY DISK DRIVES HAVE SURGED AS WELL AND DIGITAL CLAIMS THE MOST POWERFUL COMPUTER WORKSTATIONS AND SERVERS ON THE MARKET THANKS TO THE ALPHA CHIP PERSONAL COMPUTERS WHICH DIGITAL IGNORED FOR YEARS ARE NOW ITS FASTESTGROWING PRODUCTS MARKET RESEARCHER COMPUTER INTELLIGENCE PUTS DIGITAL AT NO 7 IN PERSONAL COMPUTERS AHEAD OF BETTER KNOWN MAKERS LIKE ZENITH DATA SYSTEMS AND JUST BEHIND AST RESEARCH CORP DIGITAL EXECUTIVES SAY PERSONALCOMPUTER SALES IN FISCAL 1994 SHOULD DOUBLE UP TO NOW DIGITAL HAS BEEN NEARLY INVISIBLE IN PERSONAL COMPUTERS BECAUSE MOST SALES ARE DIRECT BY MAIL THROUGH A TOLLFREE NUMBER AND ITS CUSTOMERS ARE MOSTLY CORPORATE BUYERS WHO ALREADY OWN BIGGER DIGITAL COMPUTERS TO BROADEN SALES DIGITAL HAS STRUCK AGREEMENTS WITH MICROAGE INC AND OTHER DISTRIBUTORS BUT IT IS STILL AN UNPROFITABLE BUSINESS AS PERSONALCOMPUTER PRICING IS INTENSELY COMPETITIVE DIGITAL HAS SO FAR KEPT PACE WITH EVERY BRUISING MARKDOWN ANALYSTS SAY AND THE COMPANY IS ABOUT TO SPEND MORE THAN 50 MILLION ON A BIG PERSONALCOMPUTER ADVERTISING BLITZ ACCORDING TO INSIDERS ENRICO PESATORI CHIEF OF DIGITAL'S PERSONALCOMPUTER UNIT SAYS IT SHOULD BREAK EVEN THIS YEAR AS VOLUME CLIMBS LOWERING UNIT COSTS BY CONTRAST DATA STORAGE DISK DRIVES AND COMPONENTS IS MAKING MONEY STORAGE IS A SLEEPER AN UNEXPECTED JEWEL SAYS SHAO WANG A SMITH BARNEY ANALYST THE UNIT'S MANAGER FORMER XEROX EXECUTIVE CHARLES F CHRIST IS CREDITED BY ANALYSTS WITH TURNING AROUND THE BUSINESS AND AIMING BEYOND CAPTIVE DIGITAL MARKETS TO SELL TO OTHER COMPUTER MAKERS THESE SALES ROSE FROM ZERO TWO YEARS AGO TO ABOUT 20 OF THE UNIT'S TOTAL SALES OF 1 BILLION LAST YEAR IN WORKSTATIONS POWERFUL DESKTOP MACHINES USED BY ENGINEERS AND SCIENTISTS DIGITAL STILL LAGS IN THIRD PLACE BEHIND HEWLETTPACKARD CO AND SUN MICROSYSTEMS INC YET ANALYSTS SAY IT HAS A CHANCE TO RECAPTURE LOST GROUND WITH THE ALPHA DESIGN WHICH WAS UNVEILED LAST YEAR AND IS INTENDED TO POWER DIGITAL'S COMPUTERS FOR A DECADE WITH ITS ALPHAEQUIPPED WORKSTATIONS THEY DON'T HAVE TO APOLOGIZE ANYMORE THEY'RE COMING TO THE TABLE WITH STRONG PRODUCTS AT GREAT PRICES SAYS MR WILLMAN THE ANALYST REGAINING MOMENTUM IN DESKTOPS BOTH PERSONAL COMPUTERS AND WORKSTATIONS IS ABSOLUTELY CRITICAL TO ANY RECOVERY HE ADDS AS FOR DIGITAL'S LARGER ALPHABASED COMPUTERS SALES HAVE BEEN SLOW SO FAR SOME OWNERS OF OLDER MODELS WITH THE VAX OPERATING SYSTEM HAVE BEEN RELUCTANT TO MOVE TO THE NEW LINE BECAUSE INDUSTRIALSTRENGTH OPERATING SOFTWARE FOR ALPHA WON'T BE AVAILABLE UNTIL NEXT YEAR WE'VE BEEN HAPPY WITH THE VAX AND WE'RE INTERESTED IN ALPHA BUT WE'LL LOOK AT EVERYTHING OUT THERE BEFORE WE BUY NEXT YEAR SAYS PEGGY KAYE SYSTEMS MANAGER FOR A UNIT OF U S WEST INC THE REGIONAL TELEPHONE COMPANY STILL FOR MANY ANALYSTS A TURNAROUND IS IN VIEW BOB PALMER SAVED A SINKING SHIP SAYS JAY STEVENS OF DEAN WITTER REYNOLDS INC NOW HE'S GOT TO GET IT SAILING AGAIN 9308190122 930819 TELECOMMUNICATIONS AT&T RIVALS FACE OFF IN WIRELESS WARS PLAYERS BOAST DEEP POCKETS TECHNOLOGY BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL GET READY FOR THE WIRELESS WARS AS AMERICAN TELEPHONE & TELEGRAPH CO AND MCCAW CELLULAR COMMUNICATIONS CO JOIN FORCES THEY FACE DETERMINED WELLFINANCED COMPETITION AND TECHNICAL HURDLES TOO IN TOMORROW'S WIRELESS WORLD WHERE VOICE AND DATA WILL TRAVEL THROUGH THE AIR UNFETTERED BY TELEPHONE LINES AT&TMCCAW AIMS TO POSITION ITSELF AS A SLEEK COMBATANT OFFERING EVERYTHING FROM EASY BILLING FOR LONGDISTANCE AND CELLULAR SERVICE TO PHONES FOR MAKING THE CALLS BUT A DIVERSE FORCE OF EQUALLY REFINED RIVALS IS POISED TO PUT THE NEW TEAM ON HOLD THEY WILL BE PITCHING COMPETITIVE SERVICES AND IN SOME CASES POSSIBLY BETTER TECHNOLOGY FOR MAKING PHONE CALLS AND SENDING DATA AT&TMCCAW ABSOLUTELY FACES BIG COMPETITION SAYS BERGE AYVAZIAN A SENIOR ANALYST AT YANKEE GROUP A BOSTON RESEARCH FIRM AT&T'S CHALLENGE HE SAYS WILL BE TO EXPLOIT ITS ABILITY TO OFFER ONESTOP SHOPPING FOR NATIONWIDE COORDINATED WIRELESS SERVICE AT&T HAS AN ADVANTAGE BY NOT HAVING TO DEAL WITH A NUMBER OF COMPANIES WITH COMPETING INTERESTS JOINED INTO ONE CONSORTIUM MR AYVAZIAN SAYS THE TRICK FOR AT&TMCCAW WILL BE TO KEEP THE SEVEN GIANT REGIONAL BELL COMPANIES GTE CORP AND OTHER SERVICE RIVALS OFF BALANCE NOT AN EASY FEAT THE BELL COMPANIES AND OTHERS MAKE DIRE PREDICTIONS ABOUT THE FORMATION OF A NEW AT&T MONOPOLY CALLING IT A NEWFANGLED WIRELESS BELL SYSTEM BUT THEIR LOCAL CELLULAR PHONE OPERATIONS LONG HAVE BEEN TOUGH RIVALS OF MCCAWOWNED SERVICES AT&TMCCAW WILL NEED TO COORDINATE ITS MARKETING AND KEEP ITS SALES PITCH SIMPLE AGAINST THE LOCAL PHONE MONOPOLIES IN EACH LOCAL MARKET TODAY CELLULAR IS A DUOPOLY WITH THE TRADITIONAL PHONE COMPANY RUNNING ONE SERVICE AND OUTSIDERS SUCH AS MCCAW OPERATING A COMPETING SERVICE SOME OF THE OUTSIDERS ARE PARTIALLY OWNED BY BABY BELLS FROM OTHER REGIONS TO PRESENT A UNITED FRONT NATIONWIDE MCCAW AND OTHER OUTSIDE OPERATORS INCLUDING SOUTHWESTERN BELL CORP HAVE BEEN USING THE CELLULAR ONE BRAND OF WIRELESS SERVICE STARTED BY SOUTHWESTERN NOW MCCAW'S FUTURE PARTICIPATION IN CELLULAR ONE IS IN DOUBT BECAUSE AT&T WILL LIKELY MARKET THE SERVICE UNDER ITS OWN MOREVISIBLE BRAND IF MCCAW LEAVES CELLULAR ONE ITS CURRENT PARTNERS COULD END UP HURTING AT&T BY SIGNING AN EXCLUSIVE ARRANGEMENT WITH MCI COMMUNICATIONS CORP OR SPRINT CORP TO CARRY THEIR CUSTOMERS' LONGDISTANCE CALLS MR AYVAZIAN SAYS WHILE THE MONOPOLYOWED CELLULAR CARRIERS ARE LEGALLY RESTRICTED FROM SIGNING EXCLUSIVE DEALS WITH LONGDISTANCE CARRIERS BECAUSE OF THEIR LOCAL PHONE MONOPOLIES THE OUTSIDERS HAVE NONE OF THESE OBLIGATIONS MEANWHILE SIX OF THE SEVEN BABY BELLS AND GTE THE NATION'S SECONDLARGEST CELLULAR PHONE COMPANY BANDED TOGETHER IN FEBRUARY TO MARKET THEIR CELLULAR SERVICE CALLED MOBILINK TO A WIDE VARIETY OF CONSUMERS WHILE IT'S OFF TO A SLOW START THE PARTNERS' PLANS ARE BACKED BY THE FINANCIAL MUSCLE OF PARENTS WITH ASSETS TOTALING WELL ABOVE 100 BILLION CRAIG MCCAW CHAIRMAN OF MCCAW CELLULAR SAID AT MONDAY'S ANNOUNCEMENT OF THE MERGER WITH AT&T THAT THE TWO COMPANIES WILL AGGRESSIVELY MARKET THEIR SERVICE TO THE AVERAGE CONSUMER THERE'S A LARGE SEGMENT OF RICH PEOPLE WHO HAVE CELLULAR PHONES BUT MOST AMERICANS DON'T HAVE THEM AND WE'RE GOING TO AIM AT THAT CUSTOMER GROUP MR MCCAW MIGHT AS WELL HAVE UTTERED MOBILINK'S STRATEGY SAYS AL BOSCHULTE CHAIRMAN OF NYNEX CORP'S CELLULAR BUSINESS AND OF THE MOBILINK CONSORTIUM THE COMPANIES IN MOBILINK COVER 83 OF THE US AND CANADIAN POPULATIONS VS ONETHIRD OF THE POPULATION FOR MCCAW MR BOSCHULTE NOTES ON DAY ONE WE STARTED WITH COVERAGE OF MORE THAN 80 OF THE NATION AND WE DON'T INTEND TO STOP THERE MR BOSCHULTE SAYS WE INTEND TO MARKET TO SEGMENTS OF THE POPULATION WHO ARE NOT CURRENTLY PARTICIPATING IN THE WIRELESS REVOLUTION HE SAYS AT&TMCCAW ALSO MUST RUN A GAUNTLET OF DATATRANSMISSION SERVICE RIVALS THE NEW TEAM HAS A GOOD HEAD START GIVEN THAT MCCAW OPERATES A NATIONAL NETWORK GIVING IT TIGHT CONTROL OVER SYSTEM CONSTRUCTION MAINTENANCE AND DISTRIBUTION OF SERVICES MOREOVER MCCAW PLANS TO TURN ON A NEW DIGITAL WIRELESS HIGHWAY FOR LAPTOP COMPUTERS BY THE END OF 1994 BUT OTHER WIRELESS DATA SERVICES ARE ALREADY UP AND RUNNING INCLUDING THE RAM MOBILE DATA INC NETWORK OWNED BY RAM BROADCASTING CORP AND BELLSOUTH CORP AND THE ARDIS NETWORK OWNED BY MOTOROLA INC AND INTERNATIONAL BUSINESS MACHINES CORP USERS WILL PREFER TO USE OUR PACKETDATA NETWORK BECAUSE IT'S MORE SUITABLE FOR SENDING DATA THAN VOICE SAYS MARTIN LEVETIN RAM'S SENIOR VICE PRESIDENT RAM WHICH HAS AN AGREEMENT TO HANDLE ELECTRONIC MAIL MESSAGES ON AT&T'S EASYLINK SERVICE HAS AN EXTENSIVE WIRELESS SYSTEM IT LINKS 6300 US CITIES AND TOWNS AND IS DESIGNED TO TRANSMIT DATA LOCALLY OR ACROSS THE COUNTRY AS EASILY AS CURRENT OFFICE SYSTEMS CONNECT DESKTOP COMPUTERS MR LEVETIN'S COMMENTS RAISE QUESTIONS ABOUT THE TECHNICAL DESIGN OF MCCAW'S NETWORK MCCAW IS INSTALLING DIGITAL EQUIPMENT THAT WORKS OFF AN INDUSTRY TECHNICAL STANDARD CALLED TIME DIVISION MULTIPLE ACCESS OR TDMA BUT MUCH OF THE INDUSTRY IS GEARING UP TO BACK A RIVAL AND POTENTIALLY MORE POWERFUL TRANSMISSION SCHEME CALLED CODE DIVISION MULTIPLE ACCESS OR CDMA WHILE THE TWO METHODS ARE INCOMPATIBLE A MCCAW SPOKESMAN SAYS THAT MCCAW IS INSTALLING TDMA TO MEET CUSTOMER NEEDS NOW TDMA PLACES EACH CALL SIGNAL INTO A TIME SLOT AND TRANSMITS IT WITHIN A SINGLE FREQUENCY THIS GIVES CAPACITYSTARVED CELLULAR CARRIERS IN CARCLOGGED LOCALES SUCH AS LOS ANGELES THE ABILITY TO HANDLE THREE TO SEVEN TIMES MORE PHONE CALLS THAN CURRENT TRANSMISSION NETWORKS USING OLDER ANALOG SYSTEMS BUT CDMA IS BEING TOUTED BY SEVERAL RIVAL CARRIERS SUCH AS MR BOSCHULTE'S NYNEX MOBILE PACIFIC TELESIS GROUP'S PACTEL UNIT AND U S WEST INC'S CELLULAR BUSINESS CDMA SYSTEMS ASSIGN A SPECIAL ELECTRONIC CODE TO EACH CALL SIGNAL ALLOWING MORE CALLS TO OCCUPY THE SAME SPACE AND BE SPREAD OVER AN ENTIRE FREQUENCY BAND THE RESULT IS AS MUCH AS 20 TIMES MORE CALLHANDLING CAPACITY THAN CONVENTIONAL CELLULAR SYSTEMS A MCCAW SPOKESMAN SAYS THAT THE COMPANY WILL INSTALL WHATEVER SYSTEMS BEST SERVE ITS CUSTOMERS AND THAT IT'S USING TDMA BECAUSE THE TECHNOLOGY IS AVAILABLE TODAY CDMA ISN'T HERE YET WAYNE PERRY MCCAW'S VICE CHAIRMAN HAS SAID MCCAW PRIDES ITSELF ON BEING A TECHNOLOGY AGNOSTIC STILL TRANSMISSION TECHNOLOGY WILL BECOME EVEN MORE CRITICAL AS MCCAW ATTEMPTS TO COORDINATE ITS SERVICE WITH A SATELLITE NETWORK IT PLANS TO OPERATE NEXT YEAR WITH A COUPLE OF PARTNERS CALLED AMERICAN MOBILE SATELLITE CORP THE SYSTEM IS DESIGNED TO PROVIDE TRANSMISSION COVERAGE IN HARDTOREACH AREAS WHILE DOZENS OF CELLULAR CARRIERS HAVE SIGNED UP TO USE THE SYSTEM IT WILL HAVE TO COMPETE WITH FUTURE RIVAL NETWORKS RUN BY BIG PLAYERS SUCH AS THE GIANT INTERNATIONAL TELECOMMUNICATIONS SATELLITE ORGANIZATION MOTOROLA AND A SLEW OF SMALLER SATELLITE SERVICE WANNABES BUT AT&TMCCAW'S TOUGHEST LONGTERM SHOWDOWN MAY COME AGAINST A NEW BREED OF SERVICE CALLED PERSONAL COMMUNICATION SERVICES PCS WOULD PUT A LIGHT INEXPENSIVE DIGITAL POCKETPHONE IN THE HANDS OF MILLIONS OF PEDESTRIANS THE SERVICE'S BACKERS INCLUDE EVERYBODY FROM AT&T NEMESIS MCI TO THE BABY BELLS TO ENTREPRENEURS WHO GOT CELLULAR ROLLING IN THE EARLY 1980S THE FEDERAL COMMUNICATIONS COMMISSION HAS ISSUED SOME TEST LICENSES FOR PCS BUT HAS YET TO AWARD PERMANENT LICENSES OR FREQUENCIES FOR THE SERVICE SEE RELATED STORY BABY BELLS PLAN TO PRESS US TO RELAX CURBS WSJ AUG 19 1993 9308190121 930819 ECONOMY US DEMAND FOR PETROLEUM IS STILL SLUGGISH DATA FOR JULY ARE WEAK BUT CONTINUED GROWTH IN CONSUMPTION IS SEEN BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL NEW OIL INDUSTRY FIGURES SHOW THAT US PETROLEUM DEMAND AN IMPORTANT ECONOMIC BAROMETER REMAINS SLUGGISH THE AMERICAN PETROLEUM INSTITUTE THE OIL ASSOCIATION THAT MAINTAINS THE INDUSTRY'S STATISTICS REPORTED THAT US OIL DEMAND AS MEASURED BY PETROLEUM PRODUCTS SUPPLIED FROM PRIMARY STORAGE AVERAGED 172 MILLION BARRELS A DAY FOR JULY AND 171 MILLION A DAY FOR THE FIRST SEVEN MONTHS OF 1993 THESE VOLUMES WERE ONLY MARGINALLY HIGHER LESS THAN A PERCENTAGE POINT THAN YEAREARLIER LEVELS ACCORDING TO THE API'S MONTHLY STATISTICAL REPORT RELEASED YESTERDAY STILL THE API SAID THAT INDICATORS FOR MOST MAJOR PRODUCTS ON AN INDIVIDUAL BASIS HAVE CONTINUED TO SUGGEST ONGOING ALTHOUGH MODEST GROWTH IN CONSUMPTION GASOLINE THE CHIEF PETROLEUM PRODUCT WAS CITED AS AN EXAMPLE IN CONTRAST TO YEARTOYEAR INCREASES IN RECENT PRIOR MONTHS AVERAGING 1 TO 15 GASOLINE DELIVERIES FOR JULY WERE ESSENTIALLY FLAT THE API SAID LAST MONTH ACCORDING TO THE API FIGURES DELIVERIES OF MOTOR FUEL AVERAGED 7774000 BARRELS A DAY ONLY MARGINALLY ABOVE THE 7766000 BARRELS A DAY OF JULY 1992 BUT DESPITE GASOLINE'S WEAK PERFORMANCE IN JULY THE API SAID THE TREND OF MODERATE GROWTH IN UNDERLYING CONSUMPTION IS BELIEVED TO HAVE BEEN CONTINUING IT ADDED DATA ON TRAVEL CONTINUE TO BOLSTER THE VIEW THAT GASOLINE CONSUMPTION HAS BEEN GROWING IN RECENT MONTHS THOUGH ONLY MODESTLY MEANWHILE US CONSUMPTION OF SOME OTHER PETROLEUM PRODUCTS SHOWED HEALTHY GAINS IN JULY THE API SAID DELIVERIES OF JET FUEL AND DISTILLATE FUELS WHICH INCLUDE HOME HEATING OIL ROSE 45 AND 48 RESPECTIVELY ALSO THE API SAID DELIVERIES OF RESIDUAL FUEL OIL COMMONLY USED FOR INDUSTRIAL PURPOSES OR GENERATING ELECTRICITY BROKE A PATTERN OF DECLINES OVER THE PAST YEAR BY RISING 2 IN JULY US REFINERIES OPERATED AT A STRONG 96 OF CAPACITY IN JULY THE API SAID AS A RESULT OF THIS HIGH LEVEL OF OPERATIONS COMBINED WITH SLUGGISH DEMAND FOR FUELS TOTAL INVENTORIES OF OIL AND PRODUCTS CONTINUED TO BUILD IN JULY AT THE END OF JULY ACCORDING TO THE API US INVENTORIES OF CRUDE AND PRODUCTS TOTALED SLIGHTLY MORE THAN 11 BILLION BARRELS THE HIGHEST LEVEL FOR THAT TIME OF THE YEAR IN THREE YEARS BUT ONE PLUS FACTOR FOR THE US IN THE OVERALL SLOW GROWTH FOR PETROLEUM DEMAND IS THAT IT HELPED TO HOLD DOWN THE MONTHLY CLIMB IN IMPORTED OIL IMPORTS OF CRUDE AND PRODUCTS INCREASED ONLY 04 OF A PERCENTAGE POINT TO 85 MILLION BARRELS A DAY IN JULY THE API SAID THAT WAS THE SMALLEST MONTHLY INCREASE SO FAR THIS YEAR IT ADDED STILL DOMESTIC CRUDE OIL PRODUCTION CONTINUED TO FALL IN THE LATEST MONTH AS PREVIOUSLY REPORTED US OUTPUT OF CRUDE HAS BEEN FALLING FASTER THAN EXPECTED IN JULY ACCORDING TO THE API CRUDE PRODUCTION FELL MORE THAN 400000 BARRELS A DAY OR NEARLY 6 TO 67 MILLION BARRELS A DAY BUT THE API ATTRIBUTED HALF THE DECLINE TO A 128 DROP IN ALASKAN OUTPUT RESULTING IN PART FROM DOWNTIME RELATED TO CONSTRUCTION AND MAINTENANCE WORK 9308190120 930819 CANADIAN NEWSPRINT OUTPUT ROSE IN JUNE MONTREAL CANADIAN NEWSPRINT PRODUCTION ROSE 91 IN JUNE FROM A YEAR EARLIER WHILE SHIPMENTS FELL 08 THE CANADIAN PULP AND PAPER ASSOCIATION SAID CANADIAN MILLS OPERATED AT 93 OF CAPACITY IN JUNE UP FROM 84 A YEAR EARLIER THE INCREASE IN OUTPUT AND OPERATING RATES WAS DUE MAINLY TO THE EFFECTS OF A STRIKE IN BRITISH COLUMBIA LAST YEAR AN ECONOMIST WITH THE INDUSTRY GROUP SAID CANADIAN MILLS PRODUCED 758000 METRIC TONS OF NEWSPRINT IN JUNE SHIPMENTS FOR THE MONTH TOTALED 760000 TONS A METRIC TON IS 220462 POUNDS SHIPMENTS TO THE US WERE FLAT AT 492000 TONS DOMESTIC SHIPMENTS ROSE 114 FROM A YEAR EARLIER TO 97000 TONS SHIPMENTS TO OFFSHORE MARKETS FELL 103 TO 171000 TONS IN THE FIRST HALF CANADIAN MILLS OPERATED AT 94 OF CAPACITY UP FROM 86 A YEAR EARLIER NEWSPRINT PRODUCTION FOR THE PERIOD ROSE 11 TO 4794000 TONS TOTAL SHIPMENTS ROSE 75 TO 4707000 TONS THE ASSOCIATION SAID 9308190119 930819 INTERNATIONAL SOUTH KOREA LEADERS IN ELECTRONICS REPORT STRONG PROFIT GAINS SPECIAL TO THE WALL STREET JOURNAL SEOUL SOUTH KOREA SOUTH KOREA'S THREE ELECTRONICS GIANTS SAMSUNG ELECTRONICS CO GOLDSTAR CO AND DAEWOO ELECTRONICS CO REPORTED SOLID EXPANSION IN PROFIT AND SALES FOR THE FIRST HALF OF THIS YEAR THANKS TO BOOMING EXPORTS SAMSUNG REPORTED THAT FIRSTHALF NET INCOME ROSE 81 TO 562 BILLION WON 693 MILLION FROM 311 BILLION WON FOR THE SAME PERIOD LAST YEAR SALES WERE 377 TRILLION WON UP 32 FROM THE PRIOR YEAR'S 286 TRILLION WON SAMSUNG EXPORTS ROSE 47 FROM THE SAME PERIOD LAST YEAR GOLDSTAR REPORTED FIRSTHALF NET INCOME SOARED TO 303 BILLION WON FROM 56 BILLION WON IN THE YEAREARLIER PERIOD GOLDSTAR REPORTED SALES OF 247 TRILLION WON FOR THE FIRST HALF UP 32 FROM THE YEAREARLIER 187 TRILLION WON THE COMPANY'S EXPORTS ROSE TO 192 TRILLION WON FROM THE YEAREARLIER 9422 BILLION WON GOLDSTAR CITED A SUBSTANTIAL RISE IN EXPORTS OF CONSUMERELECTRONIC PRODUCTS DAEWOO ELECTRONICS MEANWHILE REPORTED NET INCOME OF 136 BILLION WON FOR THE FIRST HALF COMPARED WITH 112 BILLION WON IN THE YEAREARLIER PERIOD SALES WERE 9589 BILLION WON COMPARED WITH 8052 BILLION WON LAST YEAR EXPORTS JUMPED 29 TO 5882 BILLION WON FROM 4553 BILLION WON FOR THE YEAREARLIER PERIOD A RISE IN EXPORTS TO THE US AND JAPAN WAS PARTICULARLY NOTICEABLE IN THE COMPANY'S OVERALL OVERSEAS SHIPMENTS DAEWOO SAID 9308190118 930819 ECONOMY GE MAY TRIM AS MANY AS 4000 JETENGINE JOBS BY WILLIAM M CARLEY STAFF REPORTER OF THE WALL STREET JOURNAL GENERAL ELECTRIC CO IS ABOUT TO ANNOUNCE ANOTHER MAJOR ROUND OF LAYOFFS AT ITS BIG JETENGINE DIVISION NEAR CINCINNATI INDUSTRY EXECUTIVES SAID THE LAYOFFS COULD TOTAL 4000 WHICH WOULD BE ONE OF THE BIGGEST IN THE DIVISION'S RECENT WORKFORCE REDUCTIONS IN THE PAST TWO YEARS GE HAS ANNOUNCED CUTBACKS OF 750 3900 AND 1600 WHICH BY EARLY NEXT YEAR WILL BRING EMPLOYMENT IN THE JETENGINE DIVISION DOWN TO 26000 IF THE NEW ROUND OF CUTBACKS DOES REACH 4000 IT WOULD MEAN EMPLOYMENT WILL HAVE PLUMMETED TO ABOUT 22000 FROM NEARLY 34000 WITHIN A PERIOD OF ABOUT TWO YEARS A GE SPOKESWOMAN DECLINED TO CONFIRM THAT A LAYOFF ANNOUNCEMENT WOULD BE MADE BUT SHE ADDED THAT BECAUSE OF POOR BUSINESS CONDITIONS WE KNOW THAT EMPLOYMENT WILL CONTINUE TO DECREASE WOLFGANG DEMISCH AN ANALYST WITH BT SECURITIES CORP A UNIT OF BANKERS TRUST SAID THAT LAYOFFS OF AS MANY AS 4000 WORKERS WOULD BE A SIZABLE CHOP AND WOULD INDICATE THAT A TURNAROUND ISN'T IN SIGHT MR DEMISCH ADDED THAT GE HAS PRETTY GOOD MARKET INTELLIGENCE AND APPARENTLY THEY ARE PREDICTING A MORE SLUGGISH RECOVERY THAN WE WOULD HAVE HOPED THE ANALYST ALSO SAID THAT THE LAYOFFS WOULD INDICATE THAT THE ONGOING RACE BETWEEN GE AND PRATT & WHITNEY FOR EFFICIENCY HASN'T YET COME TO AN END PRATT & WHITNEY GE'S ARCHRIVAL IN THE JETENGINE BUSINESS HAS ALSO BEEN STREAMLINING ITS WORK FORCE PRATT A UNIT OF UNITED TECHNOLOGIES CORP HAS CUT EMPLOYMENT TO ABOUT 35000 FROM MORE THAN 44000 AT THE BEGINNING OF LAST YEAR AND ITS WORK FORCE IS SCHEDULED TO DROP TO ABOUT 30000 BY THE END OF NEXT YEAR DELIVERIES OF NEW JETLINERS WHICH ARE EXPECTED TO DECLINE NEARLY 50 FROM THE RECENT PEAK AND DELIVERIES OF MILITARY JETS WHICH ARE DROPPING EVEN FASTER ARE MAJOR REASONS FOR THE GLOOMY OUTLOOK BUT ANALYSTS SAY THAT SHARPLY DECLINING DELIVERIES OF SPARE PARTS WHICH ACCOUNT FOR HALF OR MORE OF THE PROFITS IN THE JETENGINE BUSINESS ARE AN ADDITIONAL FACTOR MAJOR AIRLINES HAVE BEEN CUTTING BACK THEIR FLEETS AND THUS REDUCING THEIR NEED FOR SPARE PARTS IN RECENT MONTHS AMERICAN AIRLINES DELTA AIR LINES AND CONTINENTAL AIRLINES HAVE ANNOUNCED THEY WOULD GROUND AIRPLANES RETURN THEM TO LESSORS OR SELL THEM FOR GE BASED IN FAIRFIELD CONN THE JETENGINE DIVISION IS ONE OF ITS BIGGEST BUSINESSES GENERATING NEARLY 74 BILLION IN REVENUE IN 1992 DESPITE THE HARD TIMES GE'S ENGINE BUSINESS IS STILL HIGHLY PROFITABLE PRODUCING OPERATING EARNINGS OF NEARLY 13 BILLION LAST YEAR GE EXECUTIVES HAVE SAID THAT ITS ENGINE BUSINESS MAY DECLINE TO REVENUE OF ABOUT 5 BILLION A YEAR BEFORE THE DOWNTURN IS OVER 9308190117 930819 HIGH SCHOOL SENIORS BOUND FOR COLLEGE SHOW SAT ADVANCES A WALL STREET JOURNAL NEWS ROUNDUP FOR THE SECOND CONSECUTIVE YEAR THE AVERAGE SAT SCORES FOR THE US'S COLLEGEBOUND HIGH SCHOOL SENIORS ROSE SLIGHTLY BUT EDUCATION EXPERTS CAUTIONED THAT THE IMPROVEMENT WAS STILL TOO MEAGER TO CELEBRATE EVEN SLIGHT MOVEMENTS IN TEST SCORES HAVE MEANING SAID DONALD M STEWART PRESIDENT OF THE COLLEGE BOARD WHICH SPONSORS THE COLLEGE ADMISSIONS TEST BUT HE ADDED THE NATION'S PROGRESS TOWARD ACADEMIC RECOVERY IS VERY SLOW THE AVERAGE SCORE ON THE TEST'S MATH SECTION ROSE TWO POINTS TO 478 OUT OF A POSSIBLE 800 THAT MARKS THE HIGHEST AVERAGE MATH SCORE SINCE 1974 BUT THE AVERAGE SCORE ON THE TEST'S VERBAL SECTION ROSE JUST ONE POINT TO 424 OF A POSSIBLE 800 LESS THAN THE AVERAGE VERBAL SCORE RECORDED FOUR YEARS AGO A RECORD 30 OF TESTTAKERS IN THE CLASS OF 1993 REPRESENTED RACIAL AND ETHNIC MINORITIES WITH THE AVERAGE TEST SCORES FOR SIX OF SEVEN MINORITY GROUPS RISING ON BOTH PARTS OF THE SAT ASIANAMERICAN WHITE AND OTHER ETHNIC STUDENTS REPORTED THE MOST ACADEMIC STUDY AND RECEIVED THE HIGHEST SCORES WHILE BLACK AND MEXICANAMERICAN STUDENTS REPORTED TAKING THE FEWEST ACADEMIC COURSES AND WERE AMONG THE LOWEST SCORERS IN MARCH THE COLLEGE BOARD WILL INTRODUCE AN SAT WITH EXPANDED READING SECTIONS AND FEWER MULTIPLECHOICE MATH QUESTIONS FOR THE FIRST TIME TESTTAKERS WILL BE ALLOWED TO USE CALCULATORS OFFICIALS SAY HOWEVER THAT FUTURE SAT SCORES WILL BE COMPARABLE WITH PAST YEARS WITH A SCALE OF 200 TO 800 9308190116 930819 MUTUAL FUNDS FIDELITY'S SMALLCAP FUND PROVES A MAGNET FOR DOLLARS BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL TALK ABOUT MUTUALFUND MANIA INVESTORS ALREADY HAVE THROWN 500 MILLION INTO AN UNTRIED COMPUTERMANAGED SMALLSTOCK FUND LAUNCHED BY FIDELITY INVESTMENTS 7 1/2 WEEKS AGO FIRST OPENED TO INVESTORS JUNE 28 FIDELITY SMALL CAP STOCK FUND IS ALREADY BIGGER THAN MOST OF THE NATION'S SMALLSTOCK FUNDS THAT HAVE CLOSED TO NEW INVESTORS DURING THE PAST YEAR THESE FUNDS BARRED THE DOOR BECAUSE MANAGEMENT FEARED THEY WERE GETTING TOO BIG TO BUY SMALL STOCKS WITHOUT JOSTLING THE PRICE THE TORRENT OF NEW CASH POURING INTO FIDELITY SMALL CAP AT AN AVERAGE OF 13 MILLION EACH BUSINESS DAY LEAVES PEOPLE IN THE FUND INDUSTRY GASPING INVESTORS AREN'T DETERRED BY THE 3 SALES LOAD THAT MANY MUST PAY OUTSIDE RETIREMENT ACCOUNTS AND THEY DON'T SEEM TO WORRY THAT THE FUND'S PERFORMANCE COULD SUFFER IF ITS HEAVY BUYING ARTIFICIALLY INFLATES SMALLSTOCK PRICES BUT FIDELITY ARGUES THAT THE FUND'S COMPUTERIZED METHOD OF PICKING STOCKS GIVES IT THE ABILITY TO HANDLE ALL THE CASH PEOPLE ARE THROWING AT IT DESPITE ITS RAPID GROWTH THE FUND HAS LESS THAN 20 OF ASSETS IN CASH THE REST HAVING BEEN INVESTED IN STOCKS IS THE BIG INFLOW A PROBLEM NONE WHATSOEVER SAYS BRADFORD LEWIS THE FUND'S 38YEAROLD MANAGER MR LEWIS SAYS THAT EACH DAY HIS COMPUTER SPITS OUT A LIST OF 350 TO 400 STOCKS TO BUY HE PUTS THE LIST ONTO A COMPUTER FLOPPY DISK WHICH HE BRINGS EACH MORNING TO THE FIDELITY TRADING DESK THE TRADERS MR LEWIS SAYS AREN'T VERY HAPPY AT HAVING TO BUY 400 SMALL STOCKS FOR ONE FUND MANAGER IT'S TOUGH TO WALK UP THERE EVERY DAY AND AVOID THE TOMATOES MR LEWIS A FORMER NAVY PILOT AND SELFCONFESSED COMPUTER GEEK ALREADY MANAGES 25 BILLION IN ASSETS FOR FIDELITY THE OLDEST OF HIS FUNDS DISCIPLINED EQUITY HAS BEATEN THE STANDARD & POOR'S 500 INDEX IN EACH OF ITS FOUR FULL CALENDAR YEARS OF OPERATION AND SO FAR IS BEATING THE INDEX AGAIN THIS YEAR BY MORE THAN TWO PERCENTAGE POINTS THE NEW FUND AIMS TO BEAT THE RUSSELL 2000 INDEX OF SMALL STOCKS FOR ALL OF HIS FUNDS MR LEWIS USES A TYPE OF COMPUTER SOFTWARE CALLED A NEURAL NETWORK TO PICK STOCKS A NEURAL NETWORK IS MORE COMPLEX THAN A SIMPLE COMPUTER SCREEN IN THAT IT TRIES TO MIMIC THE ARCHITECTURE AND FUNCTION OF THE HUMAN BRAIN A NEURAL NETWORK IS A MACHINE THAT LEARNS CAUSEANDEFFECT PATTERNS RATHER THAN BEING TOLD MR LEWIS SAYS IT LEARNS BY LOOKING AT THE DATA OVER AND OVER AGAIN IN THIS CASE THE NETWORK TRIES TO DETERMINE HOW THE MARKET VALUES STOCKS AND THEN SEARCHES FOR STOCKS THAT APPEAR TO BE UNDERPRICED THE THEORY IS THAT THE COMPUTER MIGHT FIND SUBTLE RELATIONSHIPS IN THE PRICING OF STOCKS THAT WOULD EVADE HUMAN STOCK PICKERS IN PRACTICE MR LEWIS'S NETWORK HAS TENDED TO PICK STOCKS THAT ARE CHEAP COMPARED WITH SUCH BENCHMARKS AS BOOK VALUE AND EARNINGS BUT THAT ALSO POSSESS HIGHER EARNINGS GROWTH RATES THAN THE MARKET MR LEWIS SAYS THAT ONLY BY USING A COMPUTER TO PICK STOCKS CAN HE HANDLE THE VAST SUMS MOVING INTO HIS FUND IF I HAD TO GO OUT AND VISIT EVERY ONE OF THESE COMPANIES NO WAY COULD I PHYSICALLY BUY 400 STOCKS A DAY MR LEWIS CONCEDES HE SAYS HE USES FIDELITY'S RESEARCH DEPARTMENT AS QUALITY ASSURANCE REJECTING A COMPUTERCHOSEN STOCK IF FIDELITY ANALYSTS SUGGEST SELLING IT ONE STOCK HE HAS SOLD LATELY AT THE COMPUTER'S ADVICE WAS ZENITH LABORATORIES HE SAYS THE FUND MADE A PROFIT OF ABOUT 10 ON EACH SHARE WHICH NOW SELLS FOR 60 IN THE BRIEF PERIOD FROM THE FUND'S INCEPTION JUNE 28 THROUGH LAST THURSDAY SMALL CAP HAD A GAIN OF 21 ACCORDING TO LIPPER ANALYTICAL SERVICES NEAL LITVACK EXECUTIVE VICE PRESIDENT AT FIDELITY SAYS FIDELITY CHOSE MR LEWIS TO RUN SMALL CAP PRECISELY BECAUSE IT BELIEVED HIS COMPUTERS COULD HANDLE THE BIG MONEY IT EXPECTED THE FUND TO ATTRACT WITHOUT HAVING TO CLOSE THE FUND TO NEW INVESTORS EVEN FIDELITY WHICH HAS HISTORICALLY BEEN LOATH TO CLOSE ITS FUNDS BARRED THE DOOR TO ITS LOWPRICED STOCK FUND IN FEBRUARY THIS YEAR IN THE FACE OF HEAVY INVESTOR DEMAND FOR HOT SMALLSTOCK FUNDS BUT FIDELITY KEPT THE NAMES AND ADDRESSES OF INVESTORS WHO INQUIRED ABOUT LOWPRICED STOCK FUND AFTER IT CLOSED WE KNEW THAT WE HAD A VERY CAPTIVE PROSPECT BASE ON THE NEW FUND SAYS FIDELITY'S MR LITVACK FIDELITY MAILED A LETTER TO THOSE PROSPECTS ANNOUNCING THE OPENING OF SMALL CAP AND THE MONEY BEGAN FLOWING IN ABOUT HALF THE MONEY COMING INTO THE NEW FUND INVOLVED TRANSFERS FROM EXISTING FIDELITY FUNDS AND ABOUT HALF WAS NEW MONEY FROM OUTSIDE FIDELITY HE ADDS SOME NEW LAUNCHES OF BROKERSOLD STOCK OR BOND FUNDS HAVE ATTRACTED MORE MONEY BUT FOR A FUND THAT ISN'T SOLD THROUGH BROKERS FIDELITY SMALL CAP HAS GROWN AT AN ASTOUNDING RATE I WOULD ESTIMATE IT'S THE FASTEST INTRODUCTION EVER FOR A STOCK FUND THAT ISN'T SOLD THROUGH BROKERS SAYS AVI NACHMANY AN ANALYST AT STRATEGIC INSIGHT A CONSULTING FIRM IN NEW YORK THERE'S A CHANCE THE FUND'S RAPID GROWTH WON'T BE GOOD FOR ITS INVESTORS GEORGE U SAUTER MANAGER OF MOST OF THE INDEX FUNDS RUN BY ARCHRIVAL VANGUARD GROUP SAYS THE FAST GROWTH OF THE FIDELITY FUND COULD LEAD IT TO INCUR SUBSTANTIAL TRANSACTION COSTS IN THE MARKET HURTING RETURNS SMALL STOCKS ARE MORE EXPENSIVE TO TRADE THAN LARGE STOCKS MR LEWIS CONCEDES THAT THE BIDASK SPREADS IN SOME SMALL STOCKS ARE SHAMEFUL BUT HE SAYS HE LIMITS BUYING OF STOCKS TO 15 OF THEIR AVERAGE DAILY TRADING VOLUME A LEVEL THAT HE THINKS DOESN'T ARTIFICIALLY DRIVE UP THEIR PRICES KENNETH GREGORY EDITOR OF THE NEWSLETTER NOLOAD FUND ANALYST SAYS HE MIGHT BE OPEN TO MAKING A SMALL BET ON FIDELITY SMALL CAP BUT HE WARNS IF THE FUND GETS BIGGER WHETHER USING A COMPUTER OR NOT IT MAKES THE JOB MORE DIFFICULT FOR ONE THING AS THE FUND GROWS IT WILL HAVE TO CHOOSE LESSATTRACTIVE STOCKS FROM ITS COMPUTER MODEL AND IT MAY HAVE TO START BUYING BIGGER STOCKS I DON'T DISAGREE WITH THAT CRITICISM MR LEWIS SAYS HE THINKS THAT HE COULD GET A BETTER RETURN RUNNING A SMALLER FUND BUT I DON'T SEE THE DIMINISHING MARGINAL RETURNS IN A BIG WAY YET HE SAYS I STILL THINK YOU CAN GET A PRETTY COMPETITIVE RETURN AT 500 MILLION IN FUND ASSETS THE FUND IS ALLOWED BY CHARTER TO BUY COMPANIES WITH A STOCK MARKET VALUESHARE PRICE TIMES SHARES OUTSTANDING OF AS MUCH AS 750 MILLION ITS BIGGEST HOLDING HAS YET TO EXCEED 500 MILLION 9308190115 930819 TECHNOLOGY APPLE'S NEWTON COMPUTER SELLS BRISKLY BUT SOME USERS CRITICIZE A KEY FEATURE BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL SALES OF APPLE COMPUTER INC'S NEW HANDHELD COMPUTERS APPEAR TO BE OFF TO A BRISK START IN THE FEW MARKETS WHERE THEY ARE AVAILABLE BUT RETAILERS SAY IT'S TOO EARLY TO TELL WHETHER IT'S THE BLOCKBUSTER PRODUCT APPLE BADLY NEEDS AND DESPITE GENERALLY FAVORABLE REVIEWS A FEW EARLY USERS OF THE COMPUTER THE NEWTON MESSAGEPAD SAID THEY'RE UNHAPPY WITH THE DEVICE'S KEY FEATURE ITS ABILITY TO RECOGNIZE HANDWRITING THE CUPERTINO CALIF COMPANY INTRODUCED ITS MUCHANTICIPATED AND MUCHDELAYED MESSAGEPAD ON AUG 2 AT A COMPUTER TRADE SHOW WHERE COMPUTER VENDORS QUICKLY SOLD SEVERAL THOUSAND OF THE DEVICES SINCE THEN APPLE SAID YESTERDAY RETAILERS ARE SEEING EXCEPTIONAL DEMAND FOR THE MESSAGEPAD A PAPERBACKSIZED COMPUTER THAT RECOGNIZES HANDWRITING AND CAN SEND FAXES OVER PHONE LINES AND RECEIVE WIRELESS PAGER MESSAGES ONE SUCH RETAILER COMPUTER TOWN INC OF SALEM NH HAS SOLD 500 MESSAGEPADS SINCE THE END OF THE COMPUTER SHOW SOME OF THEM TO CORPORATE AND GOVERNMENT USERS THAT ARE BUYING UP TO A DOZEN AT A TIME AFTER HAVING TESTED ONE EARLIER THIS MONTH I'VE BEEN IN THIS BUSINESS 14 YEARS AND HAVE NEVER SEEN DEMAND THIS STRONG FOR A NEW PRODUCT SAID THOMAS JACOBS THE CHAIN'S PRESIDENT STILL THE EARLY RETURNS COME ONLY FROM THE 150 OR SO STORES IN THE NEW YORK AND BOSTON AREAS THAT APPLE HAS SUPPLIED WITH SEVERAL THOUSAND UNITS OF INITIAL SHIPMENTS MANY OF THE FIRST MACHINES WENT TO SOFTWARE HOUSES APPLE ENTHUSIASTS WHO HAVE BEEN HEARING ABOUT THE NEWTON PLANS FOR MORE THAN A YEAR AND GADGET HOUNDS WHO ALWAYS WANT THE LATEST PRODUCT AS SOON AS POSSIBLE ACCORDING TO RETAILERS IT'S A NEW TOY ANYTHING NEW THAT COMES UP I THINK I HAVE TO BUY SAID ROBERT SIROTA PRESIDENT OF MICROCAD CORP A CUPERTINO SOFTWARE HOUSE THAT BOUGHT NINE MESSAGEPADS ON AUG 2 WITH HOPES OF WRITING NEW SOFTWARE FOR THE DEVICES PHILO PAPAS GENERAL MANAGER OF THE COMPUTERRETAIL OPERATIONS AT LECHMERE INC A 23STORE CHAIN BASED IN WOBURN MASS SAID SALES OF THE 700 MESSAGEPAD HAVE FAR EXCEEDED EXPECTATIONS BUT HE ADDED THAT IT WILL TAKE SEVERAL MONTHS TO TELL HOW BIG A SUCCESS THE MESSAGEPAD REALLY IS YOU HAVE TO SEPARATE THE PENTUP DEMAND FROM HOW MUCH DEMAND THERE REALLY IS FOR THE PRODUCT FROM THE TYPICAL CUSTOMER HE SAID WE HAVEN'T HAD ENOUGH PRODUCT YET TO DETERMINE THAT THE TRUE TEST OF DEMAND FOR THE MESSAGEPAD WILL COME AFTER LABOR DAY WHEN APPLE PLANS TO BEGIN NATIONWIDE SHIPMENTS SAID JOHN REILLS GENERAL MANAGER OF COMPUSA INC'S STORE IN BRIGHTON MASS WHICH HAS BEEN SELLING ABOUT SIX MESSAGEPADS A DAY IT'S IN THE GROWING END OF THE MARKET AND THE MARKET IS GOING TO KEEP EXPANDING HE SAID BUT IT'S MUCH TOO EARLY TO EXTRAPOLATE A MAJOR APPLE SUCCESS FROM THE INITIAL HOT SALES OF SEVERAL THOUSAND MESSAGEPADS HE SAID IT ALSO WILL TAKE SEVERAL MORE WEEKS FOR THE FIRST USERS' EVALUATIONS WHICH COULD AFFECT FUTURE SALES TO FILTER OUT THE EARLY RETURNS ARE MIXED DAVID EARNEST A COMPUTER CONSULTANT IN DECATUR ALA WHO USES A MESSAGEPAD TO ORGANIZE HIS SCHEDULE AND CONTACT LISTS SAID HE LIKES THE DEVICE SO MUCH HE PLANS TO BUY SIX MORE TO ADD TO THE SIX HE ALREADY HAS BOUGHT FOR HIS COMPANY BUT OTHERS LIKE GERALD HORNIK DIRECTOR OF TECHNICAL SERVICES AT THE MEDIA LABORATORY AT MASSACHUSETTS INSTITUTE OF TECHNOLOGY SAID THAT THE MESSAGEPAD'S HANDWRITINGRECOGNITION IS SUBPAR IT ISN'T GOOD ENOUGH TO MAKE IT USEFUL SAID MR HORNIK WHO ADDED THAT THE GADGET OCCASIONALLY FREEZES UP FOR NO APPARENT REASON AND HAS A PARTICULARLY TOUGH TIME UNDERSTANDING THE WRITINGS OF HIS LEFTHANDED WIFE AND DAUGHTER AN APPLE SPOKESWOMAN SAID THE COMPANY HASN'T HAD ANY COMPLAINTS FROM CUSTOMERS ABOUT THE NEWTON MESSAGEPAD'S HANDWRITING RECOGNITION AND THAT THE DEVICE IS DESIGNED TO LEARN A USER'S HAND OVER TIME NEWTON WILL ADAPT TO YOUR HANDWRITING AND YOU HAVE TO WORK WITH IT SHE SAID 9308190114 930819 CITICORP EXECUTIVES GIVEN OPTIONS LINKED TO RISE IN STOCK PRICE NEW YORK CITICORP HAS GIVEN SENIOR EXECUTIVES OPTIONS THAT HAVE VALUE ONLY IF THE COMPANY'S STOCK RISES MORE THAN 50 ABOVE THE CURRENT PRICE UNLIKE TYPICAL INCENTIVE PACKAGES WHICH GRANT OPTIONS THAT HAVE VALUE AS SOON AS THE COMPANY'S STOCK PRICE EXCEEDS THE EXERCISE PRICE EVEN BY A SMALL AMOUNT THE CITICORP OPTIONS HAVE VALUE ONLY IF THE STOCK RISES WELL ABOVE ITS CURRENT LEVEL THE UNUSUAL STRUCTURE OF THE PACKAGE GIVES EXECUTIVES MORE INCENTIVE TO IMPROVE THE PERFORMANCE OF THE NATION'S BIGGEST BANKING COMPANY AND COMES AT A TIME WHEN CORPORATIONS ARE UNDER INCREASING PRESSURE TO BE MORE RESPONSIVE TO STOCKHOLDER CONCERNS THIS ALIGNS THE INTERESTS OF A KEY GROUP OF DECISION MAKERS MORE CLOSELY WITH THAT OF THE STOCKHOLDERS A CITICORP SPOKESMAN SAID THE OPTIONS CARRY AN EXERCISE PRICE THAT ALLOWS THE MANAGERS TO BUY SHARES AT 3175 THEY CAN EXERCISE HALF THE OPTIONS IF THE STOCK RISES TO 50 WITHIN FIVE YEARS AND STAYS THERE FOR 20 OF 30 CONSECUTIVE TRADING DAYS THEY CAN EXERCISE ALL THEIR OPTIONS IF THE PRICE REACHES 60 CITICORP STOCK CLOSED AT 33 UP 625 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE CITICORP CHAIRMAN JOHN REED AND FIVE OTHER SENIOR EXECUTIVES RECEIVED 150000 OPTIONS EACH AN UNDISCLOSED NUMBER OF OTHER EXECUTIVES RECEIVED OPTIONS WITH SIMILAR TERMS 9308190113 930819 ABREAST OF THE MARKET INDUSTRIAL STOCKS TOP 3600 BARRIER ON STRENGTH IN CONSUMER ISSUES BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK MORE STRENGTH IN SHARES OF CONSUMER PRODUCTS COMPANIES SENT THE DOW JONES INDUSTRIAL AVERAGE PAST THE 3600 MILESTONE FOR THE FIRST TIME AND WHILE THE INDUSTRIAL AVERAGE CRUISED TO ITS FOURTH RECORD IN EIGHT SESSIONS SEVERAL BROADBASED STOCK INDEXES TOPPED ALLTIME HIGHS THAT HAVE STOOD FOR MORE THAN FIVE MONTHS THE INDUSTRIAL AVERAGE CLOSED WITH A GAIN OF 1788 OR 050 TO 360486 IT HAD SURGED MORE THAN 30 AT ONE POINT THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADVANCED 160 OR 064 TO A RECORD 25287 AND THE DOW JONES EQUITY MARKET INDEX RALLIED 249 OR 058 TO A NEW HIGH OF 43329 THE STANDARD & POOR'S 500 STOCK INDEX TOPPED ITS HIGH DURING THE DAY BUT FINISHED JUST BELOW THAT MARK UP 291 OR 064 TO 45604 THE AMERICAN STOCK EXCHANGE'S MARKET VALUE INDEX CLIMBED 397 POINTS OR 090 TO 44663 A NEW HIGH BARGAINHUNTING IN DEPRESSED DRUG TOBACCO AND FOOD STOCKS HAD BEGUN TO EMERGE TUESDAY THE GROUP HAS BEEN HOBBLED FOR MONTHS BY WORRIES ABOUT THE CLINTON ADMINISTRATION'S HEALTHCARE OVERHAUL PLANS AND BY CONCERNS OVER PRICE COMPETITION IN PRODUCTS SUCH AS CIGARETTES THE CONSUMER RALLY WAS KEPT ALIVE YESTERDAY BY SHARP GAINS IN OVERSEAS MARKETS IN THE MORNING AND IN TREASURY BOND PRICES ALL DAY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100 INDEX SURGED 16 TO A RECORD THE 30YEAR TREASURY BOND CLIMBED 3/4 POINT PUSHING ITS YIELD TO A 16YEAR LOW OF 625 SHARES OF DRUG INDUSTRY LEADER MERCK WERE THE MOST ACTIVE ON THE BIG BOARD UP 1 5/8 TO 32 1/2 ON 88 MILLION SHARES OTHER CONSUMER STOCKS PEPPERED THE LIST INCLUDING PHILIP MORRIS WHICH RALLIED 1 3/4 TO 50 1/8 GLAXO HOLDINGS WHICH ROSE 1 1/8 TO 17 7/8 AND BRISTOLMYERS SQUIBB UP 1 7/8 TO 56 1/2 THOSE GAINS CAME AT THE EXPENSE OF CYCLICAL ISSUES AS INVESTORS TOOK PROFITS IN THOSE RECENT HIGHFLIERS AUTO MAKERS WERE HIT HARD GENERAL MOTORS DROPPED 2 1/8 TO 44 3/8 FORD MOTOR 1 1/2 TO 50 1/4 AND CHRYSLER 1 3/4 TO 42 I THINK INVESTORS ARE QUESTIONING HOW DEVASTATING THE CLINTON HEALTHCARE PLAN WILL BE AND WHETHER IT WILL EVER BE PASSED SAID PETER CARDILLO A SENIOR VICE PRESIDENT AT WESTFALIA INVESTMENTS HE PREDICTED MORE GAINS IN THE PHARMACEUTICAL GROUP STEVEN RESNICK SENIOR INVESTMENT STRATEGIST AT COWEN & CO SAID THE GAINS IN THE CONSUMER STOCKS THE MARKET'S TRADITIONAL GROWTH ISSUES REFLECT INVESTORS' WORRIES OVER THE STRENGTH OF THE US ECONOMY GROWTH STOCKS TYPICALLY MAINTAIN THEIR EARNINGS MOMENTUM REGARDLESS OF THE ECONOMIC ENVIRONMENT BUT MICHAEL METZ MARKET STRATEGIST AT OPPENHEIMER & CO SAID THE RALLY IN CONSUMER ISSUES MAY BE A SHORTTERM PHENOMENON THAT IS BEING POWERED BY MOMENTUM PLAYERSINVESTORS TRYING TO MAKE A QUICK PROFIT BASED ON SHORTTERM TRENDS AIR PRODUCTS & CHEMICALS JUMPED 2 3/8 TO 44 3/4 THE INDUSTRIAL AND MEDICAL GAS PRODUCER DISCLOSED A COSTCUTTING PLAN THAT INCLUDES A 7 TO 10 REDUCTION IN ITS WORK FORCE MA HANNA WAS UP 2 TO 30 3/4 AFTER MERRILL LYNCH RAISED ITS INTERMEDIATETERM OPINION ON THE STOCK TO BUY SHARES OF THE PRODUCER OF PLASTIC AND RUBBER COMPOUNDS HAD BEEN RATED ABOVE AVERAGE FREEPORTMCMORAN RESOURCE DROPPED 2 1/8 TO 17 7/8 AN ARTICLE IN YESTERDAY'S WALL STREET JOURNAL HIGHLIGHTED PROBLEMS THE COMPANY HAS FACED BECAUSE OF A SHARP DROP IN SULFUR AND FERTILIZER PRICES OVER RECENT YEARS HOME DEPOT DROPPED FOR A SECOND STRAIGHT DAY LOSING 2 3/8 TO 42 3/8 ON HEAVY VOLUME OF 53 MILLION SHARES THE STOCK DROPPED 1 7/8 ON TUESDAY EVEN THOUGH THE BUILDING PRODUCTS AND HARDWARE RETAILER POSTED IMPROVED SECONDQUARTER NET SOME ANALYSTS ALSO SHAVED A FEW CENTS OFF THEIR PERSHARE EARNINGS ESTIMATES FOR HOME DEPOT'S YEAR ENDING IN JANUARY 1994 CITING A HIGHER CORPORATE TAX RATE HIGHER PREOPENING STORE EXPENSES AND TOUGHER SALES COMPARISIONS IN THE FISCAL THIRD AND FOURTH QUARTERS TURNER BROADCASTING'S CLASS A STOCK FELL 5/8 TO 23 ON THE AMEX DIRECTORS APPROVED ITS 600 MILLION PURCHASE OF NEW LINE CINEMA AND CLOSELY HELD CASTLE ROCK ENTERTAINMENT NEW LINE'S SHARES INCHED UP 3/4 TO 19 5/8 ON THE AMEX GRUPO SIMEC GAINED 1 TO 14 1/2 ON THE AMEX SALOMON BROTHERS INITIATED COVERAGE OF THE MEXICAN STEEL PRODUCER WITH A BUY RATING EASTMAN KODAK ADDED 1/8 TO 60 3/8 THE COMPANY SAID IT PLANS TO INCREASE ITS CASH FLOW BY REDUCING CAPITAL SPENDING AND CUTTING 10000 JOBS BY 1995 THE PHOTOGRAPHIC EQUIPMENT CONCERN SAID THE MOVES WILL ALLOW IT TO REDUCE ITS BORROWINGS CRYSTAL BRANDS DROPPED 1 TO 2 1/8 THE CLOTHING COMPANY POSTED A LOSS OF 1045 MILLION OR 1146 A SHARE FOR THE SECOND QUARTER ENDED LAST MONTH THE RESULTS INCLUDED AN 82 MILLION CHARGE A YEAR AGO IT HAD A DEFICIT OF 183 MILLION OR 201 A SHARE JONES APPAREL GROUP INCREASED 1 1/4 TO 26 1/4 THE CLOTHING MANUFACTURER SIGNED A LETTER OF INTENT TO PURCHASE THE RIGHTS TO THE EVAN PICONE TRADEMARK FROM CRYSTAL BRANDS FOR 20 MILLION IN CASH PLUS FUTURE ROYALTY PAYMENTS CARNIVAL CRUISE LINES SLIPPED 1 1/2 TO 42 1/4 DEAN WITTER REYNOLDS ANALYST PAUL MACKEY DOWNGRADED THE STOCK TO NEUTRAL FROM ACCUMULATE HE SAID THE CUT WAS IN RESPONSE TO RECENT SHARP GAINS IN THE MIAMI CRUISE SHIP OPERATOR'S SHARE PRICE WYLE LABORATORIES JUMPED 1 1/8 TO 16 3/8 AVNET RALLIED 1 3/4 TO 41 AND ARROW ELECTRONICS CLIMBED 1 TO 40 SMITH BARNEY SHEARSON RAISED RATINGS ON THE STOCKS TO BUY FROM NEUTRAL ALL THREE COMPANIES MAKE ELECTRONIC PARTS ARX INC ADDED 1/2 TO 2 7/8 THE COMPANY WHICH MAKES MECHANICAL AND ELECTRONIC COMPONENTS REPORTED EARNINGS OF 13 CENTS A SHARE FOR THE FOURTH QUARTER ENDED JUNE 30 COMPARED WITH EARNINGS FROM OPERATIONS OF SIX CENTS A YEAR EARLIER 9308190112 930819 INTERNATIONAL DE LAROSIERE ELECTED HEAD OF BANK FOR RECONSTRUCTION SPECIAL TO THE WALL STREET JOURNAL LONDON BANK OF FRANCE GOVERNOR JACQUES DE LAROSIERE WAS ELECTED TO A FOURYEAR TERM AS THE NEW PRESIDENT OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT MR DE LAROSIERE RECEIVED 58 OUT OF A POSSIBLE 59 VOTES WITH ONE OF THE BANK'S GOVERNORS ABSTAINING HE WAS THE ONLY CANDIDATE AFTER FORMER ITALIAN PRIME MINISTER GIULIANO AMATO FORMER POLISH FINANCE MINISTER LESZEK BALCEROWICZ AND TOP EUROPEAN COMMUNITY ECONOMICS OFFICIAL HENNING CHRISTOPHERSEN ALL WITHDREW FROM THE RACE MR DE LAROSIERE SUCCEEDS ANOTHER FRENCHMAN JACQUES ATTALI WHO RESIGNED LAST MONTH DISGRACED BY A SERIES OF FINANCIAL GAFFES THAT EMBARRASSED THE BANK MR ATTALI'S FOURYEAR TERM HAD TWO YEARS REMAINING MR DE LAROSIERE FORMER HEAD OF THE INTERNATIONAL MONETARY FUND IS SEEN AS THE ANTITHESIS OF MR ATTALI BECAUSE HE'S A HANDSON MANAGER WITH GREAT EXPERIENCE IN INTERNATIONAL FINANCE MR ATTALI WAS KNOWN FOR HIS VISION WHICH SPAWNED THE BANK BUT WASN'T KNOWN FOR HIS ATTENTION TO DETAIL ANNE WIBBLE SWEDISH FINANCE MINISTER AND CHAIRMAN OF THE RECONSTRUCTION BANK'S BOARD OF GOVERNORS SAID SHE WAS CONFIDENT THAT UNDER MR DE LAROSIERE THE BANK WILL BE IN A POSITION TO PLAY AN EVEN MORE ACTIVE ROLE IN FULFILLING ITS IMPORTANT MANDATE TO SUPPORT THE TRANSFORMATION OF CENTRAL AND EASTERN EUROPE AND THE FORMER SOVIET UNION 9308190111 930819 BUSINESS BRIEF AIR PRODUCTS PLANS A CUT OF 7 TO 10 IN TOTAL WORK FORCE ALLENTOWN PA AIR PRODUCTS & CHEMICALS INC SAID IT IS REDUCING ITS WORK FORCE BY 7 TO 10 AS PART OF A PROGRAM TO IMPROVE COMPETITIVENESS AND PROFITABILITY THE COMPANY SAID IT WILL TAKE A CHARGE IN CONNECTION WITH THE ACTION WHICH WILL AFFECT AS MANY AS 1400 WORKERS BUT SAID IT DOESN'T YET KNOW THE AMOUNT OF THE CHARGE OR WHEN IT WILL BE RECORDED THE SUPPLIER OF INDUSTRIAL GASES AND SPECIALTY CHEMICALS WHICH HAS 14400 EMPLOYEES WORLDWIDE SAID THE PROGRAM INCLUDES PLANS TO IMPROVE WORK PROCESSES CONSOLIDATE AND RESTRUCTURE CERTAIN PARTS OF THE COMPANY AND ELIMINATE SOME LOWER POTENTIAL PROGRAMS FOR EXAMPLE A SPOKESMAN SAID AIR PRODUCTS IS WITHDRAWING FROM THE AMMONIAFERTILIZER BUSINESS AN AREA IN WHICH IT ISN'T VERY STRONG IT ALSO PLANS TO REDUCE THE NUMBER OF DIVISIONS WITHIN ITS CHEMICAL BUSINESS THE COMPANY WILL ELIMINATE 400 TO 450 EMPLOYEES IN ITS US MERCHANTGAS BUSINESS WHICH SELLS OXYGEN NITROGEN AND HYDROGEN TO OTHER COMPANIES IT ADDED THAT ITS EUROPEAN INDUSTRIALGAS BUSINESS HAS ALSO BEEN REORGANIZED AIR PRODUCTS SAID ITS PROGRAM IS DESIGNED TO INCREASE PROFIT AND IMPROVE MARKETING AND CUSTOMER SERVICE IN RESPONSE TO AN INCREASINGLY COMPETITIVE ENVIRONMENT THE COMPANY'S SALES AND EARNINGS HAVE GROWN SINCE 1989 AT A 7 COMPOUNDED RATE IT SAID AND CASH FLOW FROM OPERATIONS HAS INCREASED MORE THAN 10 ANNUALLY 9308190110 930819 BUSINESS BRIEFS SAFEGUARD SCIENTIFICS INC IS THE PRINCIPAL STRATEGIC PARTNER IN A NEW HIGHTECHNOLOGY COMPANY XL VISION INC THAT WILL FOCUS ON ELECTRONIC IMAGING PRODUCTS PAGES INC ACQUIRED CREATIVE MEDIA APPLICATIONS INC A BEDFORD HILLS NY PUBLISHER OF MULTIMEDIA PRODUCTS TERMS WEREN'T DISCLOSED UNISYS CORP SIGNED A 48 MILLION CONTRACT FOR A WSR88D ADVANCED DOPPLER WEATHER RADAR SYSTEM FOR TAIWAN THE FIRST SALE OF THE SYSTEM OUTSIDE THE US PROCTER & GAMBLE CO INTENDS TO SELL MARYLAND CLUB FOODS INC A HOUSTONBASED SUBSIDIARY THAT SELLS COFFEE TO THE FOOD SERVICE INDUSTRY AS PART OF ITS MASSIVE RESTRUCTURING PLAN THAT INVOLVES SLASHING 13000 JOBS AND CLOSING 30 PLANTS 9308190109 930819 WHO'S NEWS EMPIRE BLUE CROSS TAPS O'BRIEN EXEXECUTIVE OF CIGNA TO BE CHIEF NEW YORK EMPIRE BLUE CROSS & BLUE SHIELD NAMED FORMER CIGNA CORP EXECUTIVE G ROBERT O'BRIEN PRESIDENT AND CHIEF EXECUTIVE OFFICER THE MOVE APPEARS TO SIGNAL EMPIRE'S COMMITMENT TO EXPANDING ITS MANAGEDCARE OPERATIONS AT CIGNA WHERE MR O'BRIEN WAS AN EXECUTIVE VICE PRESIDENT HE HEADED THE COMPANY'S EMPLOYEE BENEFITS OPERATION DEVELOPING IT INTO A LEADER IN MANAGED CARE HE RETIRED FROM CIGNA WHERE HE SPENT OVER 30 YEARS IN APRIL MR O'BRIEN 56 YEARS OLD SUCCEEDS ALBERT CARDONE WHO QUIT UNDER PRESSURE FROM THE NEW YORK STATE INSURANCE DEPARTMENT UNDER MR CARDONE EMPIRE THE COUNTRY'S LARGEST BLUES ORGANIZATION SUFFERED HUGE LOSSES THAT THREATENED ITS FINANCIAL HEALTH EMPIRE ALSO NAMED THREE NEW DIRECTORS TO ITS BOARD FILLING VACANCIES NEW DIRECTORS ARE JOHN F MCGILLICUDDY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CHEMICAL BANKING CORP FAYE WATTLETON FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PLANNED PARENTHOOD FEDERATION OF AMERICA INC AND JOHN ZUCCOTTI PRESIDENT AND CHIEF EXECUTIVE OFFICER OF OLYMPIA & YORK COS USA 9308190108 930819 INTERNATIONAL NAFTA IS AN OPPORTUNITY THE US SHOULDN'T MISS SALINAS CONTENDS BY PAUL B CARROLL AND DIANNE SOLIS STAFF REPORTERS OF THE WALL STREET JOURNAL MEXICO CITY MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI SAID IN AN INTERVIEW THAT THE NORTH AMERICAN FREE TRADE AGREEMENT IS AN OPPORTUNITY THAT HAPPENS ONCE IN A GENERATION AND HE HOPES THE US CONGRESS IS UP TO ITS HISTORICAL RESPONSIBILITY TO PASS THE TREATY OTHERWISE HE SAID THE US WOULD BE MISSING A CHANCE NOT ONLY TO IMPROVE ITS SOMETIMES TROUBLED RELATIONSHIP WITH MEXICO BUT TO REDEFINE ITS RELATIONS WITH ALL OF LATIN AMERICA WHERE MANY COUNTRIES RESENT HISTORICAL INTERVENTION IN THE REGION BY THE US PRESIDENT SALINAS SITTING IN HIS OFFICE ON THE EDGE OF SPRAWLING CHAPULTEPEC PARK SEEMED DETERMINED ALMOST COMBATIVE AS HE INDICATED HE HAD GIVEN AS MUCH GROUND AS HE COULD ON NAFTA WHILE THERE IS CONSIDERABLE SENTIMENT IN THE US THAT MEXICO WILL BENEFIT HEAVILY FROM THE TREATY AND SHOULD BE GRATEFUL FOR IT MANY MEXICANS FEEL THAT THEY'VE BEEN PUSHED AROUND AS THE NEGOTIATIONS HAVE UNFOLDED THEY DIDN'T JUST HAVE TO NEGOTIATE THE TREATY ONCE WITH THE BUSH ADMINISTRATION BUT HAD TO THEN GIVE GROUND IN THE TALKS ON THE RECENTLY COMPLETED PARALLEL AGREEMENTS WHILE OFFICIALS IN WASHINGTON HAVE SAID THEY MIGHT TRY TO ADD LANGUAGE TO US LEGISLATION THAT WOULD LET THE US PULL OUT OF THE TRADE AGREEMENT IF MEXICO DIDN'T MAKE ENOUGH PROGRESS IN INCREASING ITS WORKERS' WAGES PRESIDENT SALINAS REJECTED THAT POSSIBILITY OUT OF HAND I THINK IT WOULD BE VERY UNWISE TO DO SOMETHING LIKE THAT HE SAID HALFJOKINGLY BECAUSE MEXICO WHICH HAS A BUDGET SURPLUS MIGHT TRY TO PROMOTE LANGUAGE THAT STATES THAT THE US NEEDS TO DO SOMETHING ABOUT ITS BUDGET DEFICIT HE QUICKLY ADDED THAT PRESIDENT CLINTON WITH WHOM HE HAS A GOOD RELATIONSHIP HAS MADE AN IMPRESSIVE EFFORT TO TACKLE THE US DEFICIT BUT SAID LET'S GIVE EACH COUNTRY ITS OWN RESPONSIBILITY IN MANAGING ITS OWN DOMESTIC RESPONSIBILITIES NO COUNTRY NEEDS TO HAVE ANOTHER TELLING IT WHAT TO DO PRESIDENT SALINAS DID SAY HE WOULD CONTINUE WITH SEVERAL EFFORTS TO REFORM THE MEXICAN ECONOMY IN CONFORMITY WITH NAFTA FOR ONE HE SAID HE WOULD SOON ANNOUNCE DETAILS OF A PLAN TO LINK AVERAGED PRODUCTIVITY TO AN INCREASE IN MEXICO'S MINIMUM WAGE WHICH SHOULD AMELIORATE SOME OF THE CONCERNS IN THE US ABOUT JOBS BEING EXPORTED TO MEXICO AS EMPLOYERS SEARCH FOR INEXPENSIVE WORKERS HE SAID HE WOULD ALSO SOON UNVEIL A BILL TO MAKE MEXICO MORE INVITING FOR FOREIGN INVESTMENT BY ENACTING LAWS THAT MAKE CLEAR WHAT INVESTORS NEED TO DO SOME INVESTORS HAVE SHIED AWAY FROM MEXICO BECAUSE OF UNCERTAINTY ABOUT HOW THEY WOULD BE TREATED MEXICAN GOVERNMENT OFFICIALS ALSO SAY PRESIDENT SALINAS MIGHT INVITE THE INTERNATIONAL LABOR ORGANIZATION TO VISIT MEXICO AND EVALUATE ITS ENFORCEMENT OF LABOR LAWS THE PURPOSE WOULD BE PARTLY TO DEFUSE CONCERNS IN THE US ABOUT COMPANIES POSSIBLY MOVING JOBS TO MEXICO TO AVOID THE EXPENSE OF COMPLYING WITH US LAWS ON CHILD LABOR SAFETY AND SO ON PRESIDENT SALINAS SAID HE IS TAKING NUMEROUS STEPS TO ENSURE THAT MEXICO'S PRESIDENTIAL ELECTIONS A YEAR FROM NOW ARE FREE FROM FRAUD THOSE STEPS WHILE MAINLY AIMED AT HIS DOMESTIC AUDIENCE WOULD ALSO EASE CONCERNS IN THE US ABOUT WHETHER MEXICO WAS REFORMING ITS POLITICAL PROCESS TO AVOID THE WIDESPREAD CORRUPTION THAT MARKED PAST ELECTIONS MEXICO HAS ALREADY SPENT 2 BILLION TO PROVIDE PHOTO ID CARDS FOR MEXICAN VOTERS AND TO CLEAN UP THE REGISTER OF VOTERS PRESIDENT SALINAS SAID THE COST IS HUGE HE SAID HE ALSO POINTED TO A BILL THAT WILL BE ACTED ON SOON IN THE MEXICAN CONGRESS THAT LIKELY WILL CAP CAMPAIGN SPENDING AND THAT COULD GIVE MINORITY PARTIES STRONGER REPRESENTATION IN CONGRESS IN ADDITION HE SAID THE PRESIDENTIAL VOTING NEXT YEAR WILL INVOLVE EXIT POLLING AND QUICK COUNTS OF BALLOTS AS A WAY OF PROVIDING TIMELY INFORMATION ON THE ELECTIONS AND REDUCING CHANCES OF BALLOT TAMPERING PRESIDENT SALINAS SAID HE WON'T BE INVOLVED IN LOBBYING IN THE US TO GET NAFTA APPROVED BUT DID SAY HE'LL SOON MAKE A SPEECH IN SAN FRANCISCO IN WHICH HE'LL TALK ABOUT HOW HE THINKS NAFTA WILL REDUCE MEXICAN MIGRATION TO THE US I DON'T WANT ANY MORE MIGRATION OF MEXICANS TO THE US ESPECIALLY THOSE MIGRANTS WHO ARE VERY COURAGEOUS AND TAKE IMPRESSIVE RISK IN GOING TO THE US LOOKING FOR JOBS HE SAID THAT IS THE PRECISELY THE KIND OF PERSON I WANT HERE 9308190106 930819 COMMODITIES OIL PRICES FALL AS FORECAST OF WEAKER DEMAND FOR US GASOLINE CAUSES TRADERS TO SHIFT VIEWS BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL WORLD OIL PRICES FELL ON A NEAR COLLAPSE OF US GASOLINE FUTURES IN HEAVY TRADING AFTER OILMARKET PARTICIPANTS REVERSED SOME PRIOR PERCEPTIONS OF THE STRENGTH OF US GASOLINE DEMAND THE FUTURES PRICE OF UNLEADED MOTOR FUEL FOR SEPTEMBER DELIVERY PLUNGED 168 CENTS A GALLON SEPTEMBER GASOLINE SETTLED AT 541 CENTS A GALLON ON THE NEW YORK MERCANTILE EXCHANGE THAT WAS ABOUT WHERE IT WAS BEFORE A RALLY LAST WEEK SENT IT SURGING MORE THAN FOUR CENTS A GALLON LIFTING OIL PRICES WORLDWIDE IN THE PROCESS BUT JUST AS ITS RISE LAST WEEK HAD FIRMED UP CRUDE OIL AND OTHER FUELS GASOLINE'S FALL YESTERDAY HELPED TO PULL DOWN PETROLEUM PRICES WORLDWIDE ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FOR SEPTEMBER DELIVERY DROPPED 26 CENTS TO SETTLE AT 1766 A BARREL SOME VOLATILITY WAS ADDED TO THE SEPTEMBER CONTRACT BECAUSE OF ITS PENDING EXPIRATION TOMORROW BUT OCTOBER CRUDE ALSO DROPPED 22 CENTS TO 1813 A BARREL AND ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE BRENT BLEND CRUDE FUTURES CLOSED LOWER WITH THE OCTOBER CONTRACT DOWN 13 CENTS TO 1696 A BARREL NATURAL GAS WAS THE CONTRARIAN IN US FUTURES TRADING YESTERDAY THAT WAS DUE IN PART TO THE HEAT WAVE GRIPPING MUCH OF THE US MORE GAS LIKELY WILL BE USED TO GENERATE ELECTRICITY FOR AIR CONDITIONING AS A RESULT THE FUTURES PRICE OF SEPTEMBER GAS ROSE SIX CENTS TO SETTLE AT 241 A MILLION BRITISH THERMAL UNITS TRADERS GENERALLY CITED WEEKLY FUEL INVENTORY FIGURES RELEASED LATE TUESDAY BY THE AMERICAN PETROLEUM INSTITUTE AS THE CATALYST IN THE GASOLINE TURNABOUT JUST AS THE WEEKEARLIER API FIGURES HAD HELPED TO TRIGGER THE FUEL'S RALLY THE RALLY BEGAN LAST WEEK AFTER THE API REPORTED A SURPRISING DECLINE OF 66 MILLION BARRELS IN US INVENTORIES OF GASOLINE THEN THIS WEEK THE API'S LATEST TALLY OF GASOLINE INVENTORIES SHOWED ANOTHER DECREASE BUT ONLY BY 13 MILLION BARRELS THAT WAS WELL BELOW MARKET EXPECTATIONS FOR THE SHRINKING OF FUEL INVENTORIES AS THE TRADITIONAL DRIVING SEASON NEARS ITS LABOR DAY END PEOPLE HAD EXPECTED WE WOULD HAVE A MORE SUBSTANTIAL DRAWDOWN THAN THAT SAID JOHN HILL A VICE PRESIDENT WITH THE MERRILL LYNCH ENERGY TRADING DESK IN NEW YORK THE API'S WEEKLY REPORT WAS RELEASED AS USUAL TUESDAY EVENING AFTER OFFICIAL TRADING HOURS BUT COMPUTERBASED TRADING CONTINUES ON INTO THE NIGHT AND GASOLINE PRICES BEGAN DROPPING IMMEDIATELY AFTER THE API'S INVENTORY FIGURES BECAME KNOWN IN FACT ACCORDING TO THE DOW JONES INTERNATIONAL PETROLEUM REPORT FUTURES TRADING HIT A RECORD ON THE NEW YORK MERCANTILE EXCHANGE'S OVERNIGHT ACCESS TRADING SYSTEM TUESDAY NIGHT THE SELLING OF GASOLINE FUTURES GATHERED MOMENTUM YESTERDAY DURING REGULAR TRADING HOURS AFTER FALLING PRICES HIT SOCALLED SELLSTOPS ONE SUCH PSYCHOLOGICALLY IMPORTANT LEVEL WAS 545 CENTS A GALLON BEFORE RECOVERING TO THE 541CENT CLOSE SEPTEMBER GASOLINE HIT A LOW FOR THE DAY OF 5375 CENTS A GALLON DESPITE THE FALL IN GASOLINE PRICES A RENEWAL OF BEARISH SENTIMENT HASN'T PERVADED THE OIL MARKETS MR HILL OF MERRILL LYNCH SUGGESTED THAT AFTER THE FRIDAY EXPIRATION OF THE SEPTEMBER CRUDE CONTRACT IN US FUTURES TRADING THERE COULD BE A GENERAL FIRMING OF PRICES WE ARE A LITTLE CLOSER TO THE BOTTOM AND THE FOCUS NOW WILL BE ON HEATING OIL HE SAID ALSO MANY STILL HAVEN'T WRITTEN GASOLINE OFF IN RELEASING ITS MONTHLY STATISTICAL REPORT FOR JULY YESTERDAY THE AMERICAN PETROLEUM INSTITUTE CONFIRMED ITS EARLIER INSISTENCE THAT GASOLINE DEMAND REMAINED SLUGGISH DESPITE SOME OF THE MORE BULLISH INTERPRETATIONS OF ITS WEEKLY INVENTORY DATA BUT IT ALSO CITED RECENT DATA ON MILES TRAVELED WHICH INDICATE CONTINUED MODERATE GROWTH IN UNDERLYING DEMAND FOR MOTOR FUEL ALSO ROBERT BOSLEGO A WINCHESTER MASS CONSULTANT WHO ANALYZES API FIGURES FOR HIS CLIENTS SAID THAT WE STILL ARE IN A SITUATION WHERE GASOLINE DEMAND IS EXCEEDING SUPPLY AND WE WILL SEE AN INCREASINGLY TIGHTER GASOLINE MARKET IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS GOLD FUTURES PRICES FIRMED ON THE BACK OF A WEAKER DOLLAR EVERYBODY'S WATCHING TO SEE WHAT HAPPENS IN THE CURRENCY MARKETS SAID IAN MACDONALD CHIEF PRECIOUS METALS TRADER FOR CREDIT SUISSE IN NEW YORK THE YEN'S GROWING STRENGTH AGAINST THE DOLLAR IS MAKING GOLD WHICH IS PRICED IN DOLLARS INCREASINGLY ATTRACTIVE TO JAPANESE INVESTORS HE SAID MOREOVER GOLD IS BENEFITING FROM CONTINUED UNCERTAINTY ABOUT OTHER WEAK CURRENCIES INCLUDING SEVERAL WITHIN THE EUROPEAN MONETARY SYSTEM'S EXCHANGE RATE MECHANISM ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR DECEMBER DELIVERY CLIMBED 260 TO SETTLE AT 37750 AN OUNCE MR MACDONALD PREDICTED THAT GOLD PRICES WOULD CONTINUE TO BE VOLATILE TRADING IN A RANGE BETWEEN 367 AND 385 OVER THE NEXT FEW WEEKS WE'RE STILL VERY MUCH IN A CONSOLIDATION PERIOD WHICH WILL PROBABLY GO ON FOR THE REMAINDER OF THE MONTH OTHER PRECIOUS METALS FUTURES PRICES ROSE SILVER FOR DECEMBER DELIVERY EDGED UP A HALF CENT TO 4755 AN OUNCE ON THE COMEX PLATINUM FOR OCTOBER DELIVERY JUMPED 280 TO 39140 AN OUNCE WHILE PALLADIUM FOR DECEMBER DELIVERY INCHED UP 10 CENTS TO 13750 ON THE NEW YORK MERCANTILE EXCHANGE GRAINS AND SOYBEANS WHEAT FUTURES PRICES RETREATED ON PROFITTAKING AFTER TWO CONSECUTIVE DAYS OF GAINS CONCERNS ABOUT AN OUTBREAK OF VOMITOXIN A MOLD THAT INFESTS WHEAT PLANTS HAD DRIVEN FUTURES PRICES HIGHER AT THE CHICAGO BOARD OF TRADE ON MONDAY AND TUESDAY PRODUCED BY A FUNGUS THAT FLOURISHES IN UNUSUALLY WET AND COOL WEATHER VOMITOXIN HAS BEEN FOUND IN FIELDS IN SOME NORTHERN MIDWEST STATES YET TRADERS CONCLUDED YESTERDAY THAT THE MARKET HAD OVERBOUGHT ON THE NEWS AND SOLD FUTURES CONTRACTS IN HEAVY VOLUME WHEAT FOR DECEMBER DELIVERY WAS DOWN 675 CENTS TO 31575 A BUSHEL 9308190105 930819 INTERNATIONAL NEWS CORP APPOINTS GRIFFITHS TO POSITION AT STAR TV OPERATION HONG KONG RUPERT MURDOCH CHOSE JAMES F GRIFFITHS A 39YEAROLD US TELEVISION EXECUTIVE TO BE THE MANAGING DIRECTOR OF STAR TV ASIA'S DOMINANT SATELLITE BROADCASTER MR GRIFFITHS SUCCEEDS JULIAN MOUNTER WHO RESIGNED THIS MONTH IN THE WAKE OF NEWS CORP'S PURCHASE OF A CONTROLLING STAKE IN THE FLEDGLING NETWORK NEWS CORP PURCHASED 636 OF STAR TV THREE WEEKS AGO FROM ITS FOUNDERS HONG KONGLISTED HUTCHISON WHAMPOA LTD AND THE FAMILY OF LI KASHING MR MURDOCH IS CHAIRMAN AND CHIEF EXECUTIVE OF NEWS CORP MR GRIFFITHS WILL LEAVE HIS JOB AS PRESIDENT OF PAYTV AND INTERNATIONAL HOME VIDEO FOR TWENTIETH CENTURY FOX A DIVISION OF NEWS CORP TO TAKE UP HIS NEW POST HE JOINED NEWS CORP'S TWENTIETH CENTURY FOX FILM DIVISION IN 1988 FROM PAYTV SERVICE HOME BOX OFFICE A UNIT OF TIME WARNER INC SINCE THEN HE HAS HELD A VARIETY OF STRATEGIC AND OPERATIONS POSTS WITHIN FOX'S VARIOUS PAYTV AND HOMEVIDEO BUSINESSES HE ACCEPTED HIS LATEST JOB AT FOX ONLY IN MARCH 9308190104 930819 MARKETING & MEDIA AT&T CREDIT CARDS TO BE OFFERED FREE TO COLLEGE STUDENTS NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT WILL OFFER COLLEGE STUDENTS A FREEFORLIFE CREDIT CARD AT&T SAID IT WILL SEND INFORMATION TO QUALIFYING STUDENTS AT MORE THAN 550 US COLLEGES AND UNIVERSITIES THE AT&T UNIVERSAL CARD BEING OFFERED TO STUDENTS IS A LOWINTERESTRATE MASTERCARD WITH NO ANNUAL FEE ACCESS TO AUTOMATED TELLER MACHINES AND A FEATURE TO MAKE LONGDISTANCE TELEPHONE CALLS AT&T SAID THE NEW CARD MEMBERS WILL BE GRANTED LIMITED LINES OF CREDIT AND WILL BE REQUIRED TO MAKE MONTHLY MINIMUM PAYMENTS HIGHER THAN THE AMOUNT PAID BY REGULAR CARD HOLDERS AT&T OFFERED ITS UNIVERSAL CARD ON A NOFEELIFETIME BASIS TO CUSTOMERS FOR ABOUT A YEAR WHEN IT WAS FIRST INTRODUCED IN MARCH 1990 THE COMPANY HAS SUBSEQUENTLY MADE SIMILAR OFFERS TO TARGETED CUSTOMERS IN SOME DIRECTMAIL SOLICITATIONS AND CURRENTLY TO CUSTOMERS WHO TRANSFER CREDIT BALANCES FROM OTHER CARDS AT&T WHICH CURRENTLY HAS MORE THAN 16 MILLION CARDS OUTSTANDING SEES THE COLLEGE MARKET AS A VERY LUCRATIVE MARKET A SPOKESWOMAN SAID WE ARE INTERESTED IN BUILDING BRAND LOYALTY TO THE AT&T NAME WITH STUDENTS JUST BEGINNING TO MAKE THEIR WAY IN THE WORLD THE COMPANY SAID IT ALSO WILL PROVIDE COLLEGE CUSTOMERS WITH ADVICE ON RESPONSIBLE USE OF CREDIT CARDS 9308190103 930819 TECHNOLOGY AT&T TO CLOSE NEARLY A THIRD OF OPERATOR CENTERS BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO IN A CONTINUING PUSH TO REPLACE LIVE OPERATORS WITH COMPUTERIZED SERVICES SAID IT WILL CLOSE 40 OFFICES OR ALMOST A THIRD OF ITS OPERATOR CENTERS NATIONWIDE FOR AN ANNUAL SAVING OF ABOUT 200 MILLION THE TELECOMMUNICATIONS GIANT PLANS TO PHASE OUT BETWEEN 3000 AND 4000 OPERATOR JOBS AND ELIMINATE 200 TO 300 MANAGER POSITIONS BETWEEN THE SECOND QUARTER OF 1994 AND EARLY 1995 THE OPERATORS WILL BE REPLACED BY A COMPUTERIZED VOICE RECOGNITION TECHNOLOGY DEVELOPED BY AT&T BELL LABORATORIES THAT RECOGNIZES AND RESPONDS TO A HUMAN VOICE MORE THAN HALF THE EMPLOYEES AFFECTED ARE EXPECTED TO FIND NEW JOBS WITHIN AT&T BY EARLY 1995 THE COMPANY WILL REDUCE THE NUMBER OF ITS OPERATOR OFFICES TO 71 FROM ITS CURRENT 138 THE RESTRUCTURING REFLECTS CUSTOMER PREFERENCE FOR TODAY'S EXPANDING RANGE OF CALLING OPTIONS INCLUDING SPEECH RECOGNITION SYSTEMS MESSAGING SERVICES AND CALLING CARDS AS WELL AS DIALING DIRECT SAID DANA BECKER DUNN VICE PRESIDENT OF AT&T CALL SERVICING THE COMPANY SAID ABOUT 95 OF ALL LONG DISTANCE CALLS ARE MADE WITHOUT AN OPERATOR AND THE NUMBER OF OPERATORASSISTED CALLS HAS BEEN DECLINING BY ABOUT 8 A YEAR OPERATORS WHO AREN'T REHIRED BY AT&T CAN CHOOSE BETWEEN VARIOUS OPTIONS INCLUDING SEVERANCE PACKAGES OF UP TO 104 WEEKS OF PAY COMPANYPAID RETRAINING AND EXTENDED LEAVES OF ABSENCE AT&T SAID 9308190102 930819 MONEYFUND YIELDS UNCHANGED IN WEEK NEW YORK YIELDS ON TAXABLE MONEYMARKET MUTUAL FUNDS WERE MOSTLY UNCHANGED IN THE LATEST WEEK IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS REMAINED AT 268 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER ASSETS OF 607 TAXABLE FUNDS SLIPPED BY 5357 MILLION TO 47268 BILLION THE NEWSLETTER REPORTED INDIVIDUAL INVESTORS ADDED 146 BILLION TO 435 FUNDS WHICH WAS OFFSET BY A 2 BILLION OUTFLOW FROM 172 FUNDS OPEN TO INSTITUTIONAL INVESTORS AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER OR SHORTTERM CORPORATE IOUS AND TREASURY BILLS LENGTHENED BY ONE DAY TO 62 DAYS A SIGN THAT PORTFOLIO MANAGERS DON'T EXPECT SHORTTERM INTEREST RATES TO RISE SHARPLY ANY TIME SOON THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS REMAINED AT 264 IN THE LATEST WEEK THE AVERAGE 30DAY SIMPLE YIELD CREPT UP TO 265 FROM 264 WHILE THE AVERAGE 30DAY COMPOUND YIELD REMAINED UNCHANGED AT 268 YIELDS ON TAXEXEMPT FUNDS FELL SLIGHTLY IN THE LATEST WEEK ALTHOUGH THEY REMAIN ATTRACTIVE FOR INVESTORS IN THE HIGHEST TAX BRACKETS THE AVERAGE SEVENDAY COMPOUND YIELD FOR INSTANCE SLIPPED TO 2 FROM 207 THE LATEST YIELD IS 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 DECREASED BY 8079 MILLION TO 10208 BILLION ACCORDING TO MONEY FUND REPORT THE TAXEXEMPT FUNDS' AVERAGE PORTFOLIO MATURITY LENGTHENED BY TWO DAYS TO 67 DAYS 9308190101 930819 POLITICS & POLICY US FINES COAL COMPANY 439172 FOR VIRGINIA EXPLOSION THAT KILLED 8 BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MINE SAFETY AND HEALTH ADMINISTRATION FINED A NORTON VA COAL MINE OPERATOR 439172 FOR VIOLATIONS THE AGENCY FOUND IN CONNECTION WITH AN EXPLOSION THAT KILLED EIGHT MINERS IN DECEMBER THE FINE AGAINST SOUTHMOUNTAIN COAL CO AND WILLIAM ELKINS IS THE MAXIMUM ALLOWED FOR THE EIGHT MINE VIOLATIONS UNCOVERED BUT SOME SAFETY EXPERTS THINK THAT ISN'T NEARLY TOUGH ENOUGH IT DOES CAUSE YOU TO STOP AND THINK ABOUT WHAT KINDS OF PENALTIES ARE IMPOSED FOR THESE VIOLATIONS VS OTHER VIOLATIONS THAT DON'T HAVE IMPACT ON PEOPLES' LIVES SAID PEG SEMINARIO DIRECTOR OF HEALTH AND SAFETY FOR THE AFLCIO THERE IS A REAL DISCREPANCY OF WORKPLACE VIOLATIONS AS COMPARED WITH VIOLATIONS UNDER OTHER STATUTES IN A RELATED AREA THE AFLCIO POINTS OUT FOR EXAMPLE THAT THE MAXIMUM CRIMINAL PENALTY FOR EMPLOYERS WHO WILLFULLY VIOLATE A FEDERAL OCCUPATIONAL SAFETY STANDARD RESULTING IN THE DEATH OF A WORKER IS SIX MONTHS IN JAIL THAT COMPARES WITH 15 YEARS IN JAIL FOR AN ENVIRONMENTAL VIOLATION THAT RESULTS IN A DEATH BUT ABDUL KHAIR A MINING PROFESSOR AT WEST VIRGINIA UNIVERSITY AT MORGANTOWN COUNTERS THAT NO BUSINESS OWNER ATTEMPTS TO SET UP AN UNSAFE ENVIRONMENT TO INJURE OR KILL A WORKER THE SAFEST OPERATION IS THE MOST COSTEFFECTIVE HE SAID HENRY CHAJET THE LAWYER FOR SOUTHMOUNTAIN CALLED THE ACCIDENT A TRAGEDY THAT THE COMPANY AND ITS EMPLOYEES TRIED HARD TO PREVENT HE SAID MINE INSPECTORS VISITED THE SITE A WEEK BEFORE THE ACCIDENT AND FOUND IT TO BE SAFE AND WELLVENTILATED THE CASE IS NOT AS ONESIDED AS THE PRESS RELEASES WOULD MAKE IT SEEM HE SAID MR ELKINS IS BEING CHARGED BY THE GOVERNMENT AS AN OPERATOR OF THE MINE WHICH MAKES HIM RESPONSIBLE FOR THE SAFETY OF THE WORKERS THE LAWYER FOR MR ELKINS JEFFREY STURGILL ARGUED IN DOCUMENTS THAT HIS CLIENT WAS ONLY AN AGENT OR CONSULTANT FOR THE MINE MEANING THAT THE GOVERNMENT WOULD HAVE TO SHOW THAT HE WILLFULLY ENDANGERED THE SAFETY OF WORKERS MR STURGILL COULDN'T BE REACHED FOR COMMENT LABOR DEPARTMENT LAWYERS HAVE PASSED INFORMATION ON THE CASE OVER TO THE US ATTORNEY'S OFFICE IN ROANOKE VA WHICH IS WEIGHING CRIMINAL CHARGES AGAINST THE COMPANY SAID EDWARD CLAIR ASSOCIATE SOLICITOR FOR MINE SAFETY AND HEALTH THE MINE SAFETY AGENCY FOUND VIOLATIONS CAUSED BY A HIGH DEGREE OF NEGLIGENCE AND IN SEVERAL INSTANCES RECKLESS DISREGARD FOR THE NATION'S MINING LAWS SAID EDWARD HUGLER ACTING ASSISTANT SECRETARY OF LABOR FOR MINE SAFETY AND HEALTH IN ITS MAY REPORT ON THE ACCIDENT THE AGENCY'S INVESTIGATORS FOUND THAT INSUFFICIENT VENTILATION IN THE MINE LED TO A BUILDUP OF METHANE GAS COMPANY OFFICIALS FAILED TO DETECT THE BUILDUP BECAUSE OF INADEQUATE EXAMINATIONS THE REPORT SAID A CIGARETTE LIGHTER SET OFF THE METHANE EXPLOSION INSPECTORS SAID 9308190100 930819 BUSINESS BRIEF SCANDINAVIAN AIRLINES SYSTEM THREENATION AIRLINE POSTS PRETAX LOSS FOR FIRST HALF SCANDINAVIAN AIRLINES SYSTEM AN AIRLINE CARRIER JOINTLY OWNED BY SWEDEN DENMARK AND NORWAY HAD A FIRSTHALF PRETAX LOSS AFTER FINANCIAL ITEMS OF 609 MILLION SWEDISH KRONOR 758 MILLION INCREASED FINANCIAL CHARGES WERE CITED A YEAR EARLIER PRETAX PROFIT TOTALED 502 MILLION KRONOR REVENUE ROSE 17 TO 1896 BILLION KRONOR THE AIRLINE CARRIER WHOSE ACTIVITIES ALSO INCLUDE HOTELS CHARTER OPERATIONS AND CATERING SERVICES CHARGED 109 BILLION KRONOR AGAINST EARNINGS TO COVER FINANCIAL CHARGES IN THE PERIOD UP FROM 224 MILLION KRONOR THE YEAR EARLIER SAS SAID THE INCREASE WAS DUE TO THE WEAKENING OF THE SWEDISH KRONA HIGHER INTERESTRATE COSTS AND INCREASED DEBT FURTHERMORE SAS SAID THE FIERCE COMPETITION IN THE AIRLINE BUSINESS HAS PREVENTED IT FROM INCREASING FARES TO COMPENSATE FOR THE KRONA'S DEPRECIATION THE DEPRESSED INTERNATIONAL AIRLINE MARKET SHOWED SIGNS OF RECOVERY IN TRAFFIC VOLUME BUT SWEDEN THE AIRLINE'S MOST IMPORTANT MARKET REMAINED STAGNANT SAS SAID 9308190099 930819 TREASURY TO SELL NOTES AND RAISE FRESH CASH WASHINGTON THE TREASURY PLANS TO RAISE A COMBINED 1388 BILLION IN FRESH CASH NEXT WEEK WITH THE SALE OF 16 BILLION OF TWOYEAR NOTES TUESDAY AND 11 BILLION OF FIVEYEAR NOTES WEDNESDAY THE BALANCE OF THE PROCEEDS WILL BE USED TO REDEEM 1312 BILLION IN MATURING TWOYEAR AND FIVEYEAR NOTES THE CUSIP NUMBER FOR THE TWOYEAR NOTES IS 912827L91 THE CUSIP NUMBER FOR THE FIVEYEAR NOTES IS 912827M25 NONCOMPETITIVE TENDERS FOR THE TWOYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 5000 MUST BE RECEIVED BY NOON EDT TUESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EDT NONCOMPETITIVE TENDERS FOR THE FIVEYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 1000 MUST BE RECEIVED BY NOON EDT NEXT WEDNESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EDT 9308190098 930819 FIRSTFED MICHIGAN DECLARES STOCK SPLIT AND DIVIDEND INCREASE DETROIT FIRSTFED MICHIGAN CORP DECLARED A 3FOR2 STOCK SPLIT OF ITS COMMON STOCK AND A 58 INCREASE IN ITS QUARTERLY CASH DIVIDEND THE ADDITIONAL SHARES AND THE DIVIDEND ARE BOTH PAYABLE ON SEPT 20 TO STOCK OF RECORD ON SEPT 1 AS A RESULT OF THE SPLIT WHICH IS IN THE FORM OF A 50 STOCK DIVIDEND EACH STOCKHOLDER WILL RECEIVE ONE ADDITIONAL SHARE OF COMMON STOCK FOR EVERY TWO SHARES OWNED AS OF SEPT 1 FIRSTFED CURRENTLY HAS 124 MILLION COMMON SHARES OUTSTANDING ON SEPT 20 AFTER THE SPLIT IS EFFECTIVE THE OUTSTANDING COMMON STOCK WILL INCREASE TO 186 MILLION SHARES ON A PRESPLIT BASIS THE NEW QUARTERLY CASH DIVIDEND RATE WOULD HAVE BEEN 18 CENTS A SHARE UP 58 FROM THE 17 CENTS A SHARE DECLARED IN THE PREVIOUS TWO QUARTERS BECAUSE OF THE STOCK SPLIT A 12CENTASHARE CASH DIVIDEND WILL BE PAID ON ALL OUTSTANDING SHARES OF COMMON STOCK AFTER THE SPLIT 9308190097 930819 WHO'S NEWS ADVANCED PHOTONIX INC ADVANCED PHOTONIX INC CAMARILLO CALIF PATRICK J HOLMES WAS APPOINTED CHIEF FINANCIAL OFFICER OF THIS MAKER OF SOLIDSTATE SILICON PHOTO DETECTION DEVICES SUCCEEDING DENA COEHLCO 32 YEARS OLD WHO RESIGNED MR HOLMES 47 PREVIOUSLY WAS CONTROLLER OF HR TEXTRON 9308190096 930819 AIR CANADA OFFERS TO BUY ROUTES FROM CANADIAN AIR BY CHRISTOPHER J CHIPELLO AND MICHAEL T MALLOY STAFF REPORTERS OF THE WALL STREET JOURNAL AIR CANADA IN A NEW GAMBIT TO FORESTALL RIVAL CANADIAN AIRLINES' PROPOSED TIEUP WITH AMR CORP OFFERED TO BUY CANADIAN'S INTERNATIONAL ROUTES FOR 200 MILLION CANADIAN DOLLARS US152 MILLION THE OFFER WASN'T RECEIVED WARMLY RHYS EYTON CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PWA CORP CANADIAN'S PARENT CALLED THE OFFER A DIABOLICAL PLOT TO KILL CANADIAN AIRLINES AND DUPE THE CANADIAN PUBLIC AIR CANADA OFFICIALS DIDN'T HIDE THE OFFER'S POLITICAL IMPLICATIONS HOLLIS HARRIS CHAIRMAN AND CHIEF EXECUTIVE OF THE MONTREAL AIRLINE TOLD REPORTERS HE HOPED THE PROPOSAL WOULD PREVENT THE BITTER FIGHT BETWEEN CANADA'S TWO INTERNATIONAL CARRIERS FROM BECOMING AN ISSUE IN NATIONAL ELECTIONS EXPECTED TO BE HELD THIS FALL PWA OFFICIALS HAVE WARNED THAT FAILURE TO WIN AMR'S PROPOSED C246 MILLION EQUITY INVESTMENT IN CANADIAN BY THE END OF THIS YEAR COULD FORCE THE CALGARY ALBERTA AIRLINE INTO BANKRUPTCY AMR'S INVESTMENT IS CONTINGENT ON CANADIAN'S SHIFTING ITS INTERNAL RESERVATION SYSTEM TO AMR'S NETWORK FROM THE GEMINI SYSTEM THAT PWA NOW SHARES WITH AIR CANADA BUT PWA IS BOGGED DOWN IN A COMPLEX LEGAL FIGHT TO BREAK FREE OF ITS COMMITMENT TO GEMINI SO PWA HAS CALLED ON THE GOVERNMENT TO INTERVENE IN ORDER TO PRESERVE COMPETITION IN CANADA'S AIRLINE INDUSTRY THERE IS AN ALTERNATIVE TO THE AMR RESCUE SAID AIR CANADA'S MR HARRIS WE WANT THE FEDERAL GOVERNMENT TO KNOW THAT HE SAID THE AIR CANADA PLAN PRESERVES DOMESTIC COMPETITION MINIMIZES JOB LOSSES SAVES GEMINI AND CREATES A SINGLE INTERNATIONAL AIRLINE THAT CAN COMPETE ON A WORLD SCALE AS OUTLINED BY MR HARRIS AIR CANADA'S OFFER INCLUDES C200 MILLION IN CASH FOR ALL OF CANADIAN AIRLINES' INTERNATIONAL ROUTES AIR CANADA WOULD ALSO ASSUME DEBT AND LEASE OBLIGATIONS WORTH C800 MILLION FOR EIGHT AIRCRAFT USED ON THE ROUTES AND WOULD OFFER JOBS TO CREW MEMBERS AFFECTED BY THE ACQUISITION BUT PWA SAID THAT AFTER SUBTRACTING ADVANCE TICKET SALES AND OTHER OBLIGATIONS CANADIAN WOULD BE LEFT WITH LESS THAN C40 MILLION IN CASH THE AIRLINE ALSO WOULD BE SADDLED WITH 10 WIDEBODIED AIRCRAFT THAT IT CAN'T OPERATE DOMESTICALLY PWA SAID AT A NEWS CONFERENCE IN TORONTO MR EYTON SAID HE BELIEVED AIR CANADA'S OFFER WAS AIMED AT INFLUENCING A HANDFUL OF PWA SENIOR CREDITORS IN JAPAN WHO HAVEN'T YET AGREED TO THE COMPANY'S FINANCIAL RESTRUCTURING PLAN HE SAID IT APPEARED TO BE AN ATTEMPT TO KILL THE RESTRUCTURING BY MAKING THE CREDITORS WONDER IF THEY MIGHT BE BETTER OFF WITH AIR CANADA OPERATING THE PLANES TO WHICH THEY HAVE CLAIMS PWA IS TRYING TO GET ALL THE SENIOR CREDITORS IN AGREEMENT BY NEXT WEEK AHEAD OF VOTES ON AUG 27 BY SHAREHOLDERS AND DEBENTURE HOLDERS MR EYTON SAID IN TRADING ON THE TORONTO STOCK EXCHANGE PWA'S STOCK CLOSED AT 62 CANADIAN CENTS 47 US CENTS A SHARE UNCHANGED AIR CANADA SHARES CLOSED AT C490 US373 UP 30 CANADIAN CENTS 9308190095 930819 INTERNATIONAL PHILIPS OFFICIAL CALLS DCC LAUNCH FLAWED VOWS DIVISION COMEBACK BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL EINDHOVEN THE NETHERLANDS A TOP PHILIPS ELECTRONICS NV EXECUTIVE EXPRESSED DISSATISFACTION WITH HIS COMPANY'S PERFORMANCE SO FAR IN A GLOBAL MARKETING BATTLE BETWEEN NEW DIGITAL MUSIC SYSTEMS BUT HE VOWED A COMEBACK NEXT MONTH WHEN A NEW LINE OF PRODUCTS HITS THE MARKET HENK BODT HEAD OF PHILIPS'S CONSUMER ELECTRONICS BUSINESS SAID I'M NOT COMPLETELY SATISFIED WITH THE LAUNCH EARLIER THIS YEAR OF HIS COMPANY'S NEW DIGITAL COMPACT CASSETTE SYSTEM WHICH BRINGS COMPACT DISKSTYLE SOUND TO TAPE CASSETTES WITHOUT CONFIRMING OR DENYING THEM HE DISMISSED AS INSIGNIFICANT REPORTS THAT IN THE FIRST FEW MONTHS OF SALE IN THE US A RIVAL SONY CORP SYSTEM WAS OUTSELLING PHILIPS'S DCC ABOUT TWO TO ONE REGARDLESS HE SAID WE THINK WE WILL HAVE TO SPEED UP THE MARKETING EFFORT FOR DCC MR BODT'S COMMENTS TO A SMALL GATHERING OF JOURNALISTS AT PHILIPS HEADQUARTERS HERE SUPPORT WHAT FOLLOWERS OF THIS INTENSE CONSUMERMARKETING WAR HAVE BEEN SAYING FOR WEEKS BUT PHILIPS HAS BEEN PUBLICLY REFUTING THAT SONY WON THE FIRST ROUND OF A LONG COSTLY MARKETING FACEOFF WITH PHILIPS BOTH COMPANIES HAVE INVESTED MILLIONS OF DOLLARS IN PROMOTING THEIR SYSTEMS AS THE NEXTGENERATION HIFI PHILIPS'S DCC PLAYERS USE NEW DIGITALSOUND TAPE CASSETTES AS WELL AS CONVENTIONAL ANALOGUE CASSETTES AND ARE BILLED AS SUCCESSORS TO TODAY'S STANDARD CASSETTE DECKS SONY'S MINIDISK PLAYERS USE MINIATURE CDS AND ARE DIGITAL DESCENDANTS OF SONY'S WALKMAN PORTABLE TAPE PLAYERS DCC'S FORTUNES ARE CRITICAL TO PHILIPS EUROPE'S LARGEST CONSUMER ELECTRONICS COMPANY AND THE INVENTOR OF BOTH THE ORIGINAL ANALOG TAPE CASSETTE AND THE COMPACT DISK PLAYER IT'S ONE OF TWO NEW DIGITAL PRODUCT FAMILIES THAT PHILIPS IS HOPING TO MAKE INTO CONSUMER BLOCKBUSTERS OVER THE NEXT FIVE YEARS GIVING NEW LIFE TO PHILIPS'S CONSUMER ELECTRONICS DIVISION THE OTHER PRODUCT IS CDI FOR COMPACT DISK INTERACTIVE A DIGITAL VIDEO SYSTEM THAT APPLIES CD TECHNOLOGY TO HOME VIDEO GAMES MOVIES AND OTHER TVBASED SOFTWARE ACCORDING TO MR BODT'S ANALYSIS PHILIPS'S KEY FLAW SO FAR IN DCC WAS ITS TARDINESS IN GETTING PORTABLE PLAYERS INTO THE MARKET BECAUSE OF TECHNICAL PROBLEMS INCLUDING A SOFTWARE GLITCH THAT EMERGED LAST YEAR AND TOOK TIME TO CORRECT PHILIPS FIRST ENTERED THE MARKET WITH EASIERTODEVELOP HOME TAPEDECK SYSTEMS RATHER THAN THE MINIATURIZED PORTABLE MODELS THAT SONY INTRODUCED AS A RESULT MR BODT SAID DCC HAS COME ACROSS AS AN UPMARKET NICHE PRODUCT FOR WELLHEELED AUDIOPHILES RATHER THAN THE MASSMARKET ITEM PHILIPS HOPES DCC WILL BECOME THE FIRST PORTABLE DCC PLAYERS BECAME AVAILABLE IN SMALL QUANTITIES LAST JUNE IN JAPAN BUT THE MAIN PRODUCT LAUNCHES ARE SCHEDULED FOR NEXT MONTH IN THE US AND EUROPE IN EUROPE PHILIPS PLANS TO START SELLING INTHECAR DCC MODELS AT PRICES RANGING FROM 1500 TO 2000 MARKS 886 TO 1181 AND PORTABLE MODELS FOR ABOUT 900 MARKS AS WITH MOST CONSUMER PRODUCTS THE COMPANY AIMS TO CUT PRICES AS SALES BUILD AND PERUNIT PRODUCTION COSTS FALL REGARDLESS OF DCC'S LONGTERM PROSPECTS MR BODT IS VOWING TO TURN AROUND THE DIVISION WITHIN THE NEXT FEW YEARS SPECIFICALLY HE SAID HIS TARGET IS TO MAKE THE DIVISION BREAK INTO AN OPERATING PROFIT AT SOME POINT DURING 1994 THOUGH HE SAID HE ISN'T PROMISING A PROFIT FOR THE WHOLE YEAR BEYOND THAT HE SAID I CERTAINLY WILL FEEL VERY UNHAPPY IF THE DIVISION'S OPERATING PROFIT DOESN'T REACH 3 TO 4 OF ITS SALES WITHIN THREE YEARS 9308190094 930819 ENTERPRISE CRASH COURSES OFFER QUICK DOSES OF BUSINESS WISDOM BREAK IT GENTLY TO MBA STUDENTS BUT SPEEDY LESSONS CAN BE PROFITABLE BY MELISSA LEE STAFF REPORTER OF THE WALL STREET JOURNAL CRASH COURSES ON HOW TO START OR EXPAND A BUSINESS ARE INCREASINGLY POPULAR AND MANY PEOPLE ARE USING THE KNOWLEDGE GAINED IN A FEW DAYS OR WEEKS AS A SHORTCUT TO SUCCESS A COURSE IS OFTEN A THRIFTY MOVE AS WELL JUST 68 WILL BUY AN EIGHTHOUR COURSE ON LAUNCHING A MAILORDER BUSINESS AT THE CAMBRIDGE CENTER FOR ADULT EDUCATION IN CAMBRIDGE MASS AND EVEN THE 1020 FEE FOR A SEMESTER OF STUDYING BUSINESS BASICS AT PACE UNIVERSITY'S ADULTEDUCATION PROGRAM IN NEW YORK CITY PALES IN COMPARISON WITH THE COST OF GETTING A MASTER'S DEGREE IN BUSINESS ADMINISTRATION ENTREPRENEUR MARK NOBLIN OF SANTA FE NM SAYS A ONEDAY 25 COURSE AT THE LOCAL COMMUNITY COLLEGE'S BUSINESS CENTER ENABLED HIM TO TURN HIS WIFE'S PARTTIME TOUR BUSINESS FOR TEENAGERS INTO A TRAVEL COMPANY SPECIALIZING IN INCENTIVE TRIPS FOR BIG FIRMS SINCE THE REORGANIZATION LAST YEAR HE SAYS REVENUE AT SOUTHWEST ADVENTURE GROUP INC HAS DOUBLED IT WAS A VERY REALWORLD CLASS SAYS MR NOBLIN A FORMER COMPUTER SALESMAN FOR UNISYS CORP YOU'RE NOT STUDYING THE GROSS NATIONAL PRODUCT OR BUSINESS CYCLES YOU'RE LEARNING HOW TO RUN YOUR SMALL BUSINESS IN HIS CASE HE NEEDED TO KNOW HOW TO DRAW A CASHFLOW CHART TO DETERMINE THE POTENTIAL PROFITS OF RESTRUCTURING I HAD THE WILL AND DESIRE BUT NOT THE KNOWHOW TO TURN MY BUSINESS AROUND HE SAYS MY WIFE AND I CAME FROM STRONG SALES AND MARKETING BACKGROUNDS BUT DIDN'T HAVE THE KNOWLEDGE TO PLAN GROWTH AND CASHFLOW PROJECTIONS SINCE ITS EXPANSION SOUTHWEST ADVENTURE GROUP HAS BOUGHT A PUEBLOTOURING COMPANY AND A RAFTING COMPANY AND OPENED A BRANCH OFFICE IN ALBUQUERQUE NM MR NOBLIN SAYS IT IS CURRENTLY PLANNING TO TAP THE GERMAN MARKET HE ADDS MANY SHORT COURSES CAN BE SUPERFICIAL AND INSTRUCTORS POORLY PREPARED SAY EDUCATORS BUT A GROWING NUMBER OF ENTREPRENEURS HAVE DISCOVERED THE USEFULNESS OF NIGHT CLASSES AND THREEDAY SEMINARS EDUCATORS SAY ENROLLMENT HAS BEEN GROWING SEMESTER BY SEMESTER FOR THE PAST SEVERAL YEARS FIVE TO 10 YEARS AGO IT WAS MOSTLY PEOPLE IN BUSINESS TAKING THESE COURSES TO HELP THEM DO A BETTER JOB OF RUNNING BUSINESSES THEY ALREADY HAD SAYS CHARLES SCHUBBE VICE PRESIDENT OF THE INTERNATIONAL ASSOCIATION OF SMALL BUSINESS MANAGEMENT INSTRUCTORS A TRADE GROUP IN WHITE BEAR LAKE MINN BUT NATIONALLY THESE DAYS THERE ARE PEOPLE OUT THERE WITH GOOD EDUCATIONS AND GOOD BACKGROUNDS WHO ARE BEING LAID OFF BECAUSE OF THE DOWNSIZING OF BIG COMPANIES AND THESE PEOPLE ARE LOOKING FOR ALTERNATIVES AT THE LEARNING ANNEX THE NATION'S LARGEST ADULTEDUCATION COMPANY ENROLLMENT IN BUSINESS COURSES HAS SHOT UP 30 IN THE PAST YEAR ALONE SAYS HARRY JAVER EXECUTIVE DIRECTOR FOR NEW YORK CITY FOR THE LEARNING ANNEX AND AT NEW YORK UNIVERSITY'S DEPARTMENT OF CONTINUING EDUCATION THE SMALLBUSINESS MANAGEMENT AND ENTREPRENEURSHIP COURSES HAVE BEEN FILLING UP QUICKLY WITH PEOPLE TURNED AWAY EVERY SEMESTER BECAUSE OF SPACE LIMITATIONS A SPOKESWOMAN SAYS THE CLASSROOM EXPERIENCE HELPED VINCE FOSTER ANOTHER SANTA FE ENTREPRENEUR CLIMB OUT OF THE ECONOMIC DOLDRUMS A PHOTOGRAPHER STUCK IN A SATURATED MARKET MR FOSTER RESEARCHED THE LOCAL ECONOMY AND FOUND THAT DESKTOP PUBLISHING WAS AN EMPTY NICHE HE COULD FILL WITH HIS BACKGROUND BUT INSTEAD OF FINDING A STOREFRONT AND HANGING A GRANDOPENING BANNER ACROSS THE ENTRANCE HE FIRST TOOK A FIVEWEEK SUMMER COURSE IN ENTREPRENEURSHIP AT SANTA FE COMMUNITY COLLEGE IN 1991 I ALREADY HAD A BUSINESS DEGREE SAYS MR FOSTER WHO ONCE OWNED A PIZZA RESTAURANT BUT I KNEW I WANTED TO GO INTO MY NEW BUSINESS FRESH LIKE A BRANDNEW BABY WITH NO PRESUPPOSITIONS MR FOSTER SAYS THE COURSE REFRESHED HIM ON PRACTICAL ASPECTS OF BUSINESS SUCH AS HANDLING A PAYROLL AND ADVERTISING THAT HE HADN'T DEALT WITH IN 25 YEARS I WENT TO SCHOOL TO CONFIRM THE FACT THAT I WANTED TO OPEN MY OWN BUSINESS HE SAYS A FEW DAYS AFTER THE COURSE ENDED HE WENT TO THE BANK ARMED WITH THE 12PAGE BUSINESS PLAN THAT HE HAD DRAFTED IN CLASS AND APPLIED FOR A LOAN TO COVER STARTUP COSTS HE SAYS TWO MONTHS LATER IN SEPTEMBER 1991 HE OPENED GET TYPE & GRAPHICS INC IT WILL MAKE A PROFIT FOR THE FIRST TIME THIS YEAR ON SALES OF 170000 MR FOSTER SAYS PEOPLE WITH NO BUSINESS BACKGROUND SAY A SHORT STINT IN ACADEMIA CAN MAKE A CRUCIAL DIFFERENCE SHARON DANSBY A HIGHSCHOOL MUSIC TEACHER WANTED TO MARKET TOMATO SAUCE MADE FROM HER HUSBAND'S FAMILY RECIPE SO SHE TOOK AN ENTREPRENEURSHIP COURSE AT A SMALLBUSINESS DEVELOPMENT CENTER IN PURCHASE NY TO FIND OUT HOW TO DO IT SHE SAYS THE COURSE TAUGHT HER SUCH ELEMENTARY POINTERS AS GETTING INFORMATION FROM TRADE PUBLICATIONS AT HER LOCAL LIBRARY AND SEEKING HELP FROM TRADE ORGANIZATIONS ON DEVELOPING MARKETING STRATEGIES SINCE HER BUSINESS SED & DUNN INC OF PORT CHESTER NY SOLD ITS FIRST BOTTLE OF DANSBY'S GOURMET SAUCE THREE YEARS AGO IT HAS ADDED A HOT SAUCE AND HONEY MUSTARD TO ITS LINE MS DANSBY AND HER HUSBAND ALSO A FULLTIME SCHOOL TEACHER RUN THE BUSINESS IN THEIR SPARE TIME I WOULDN'T KNOW HALF THE THINGS I KNOW NOW IF I HADN'T TAKEN THE COURSE MS DANSBY SAYS AMY EPSTEIN ALSO CREDITS A BUSINESS CLASS WITH LAUNCHING HER AS AN ENTREPRENEUR THE FORMER NEW YORK CITY URBAN PLANNER STARTED THE STRAIGHT EDGE INC IN BROOKLYN NY AFTER DESIGNING WHAT SHE CALLS THE PRODUCT THAT THE WORLD WAS WAITING FOR AT THE PARSONS SCHOOL OF DESIGN IN NEW YORK CITY A DECADE AGO THE PRODUCT AN EDUCATIONAL PLACEMAT INSPIRED BY HER FIVEYEAROLD SON'S RESTLESSNESS AT THE DINNER TABLE IS NOW THE CORNERSTONE OF A BUSINESS THAT ALSO MARKETS EDUCATIONAL RUGS BATH PUZZLES AND EDUCATIONAL AUDIO TAPES MS EPSTEIN PROJECTS SALES THIS YEAR OF 4 MILLION THE COURSE IN INDUSTRIAL DESIGN FOCUSED ON PRODUCT DEVELOPMENT WITHOUT IT MS EPSTEIN SAYS SHE WOULD NEVER HAVE DESIGNED THE PLACEMAT OR MUSTERED THE COURAGE TO PUT IT TO THE MARKET TEST INDEED SHE SAYS IT WAS ONLY AFTER A DEPARTMENTSTORE BUYER BROUGHT INTO HER SCHOOL TO JUDGE CLASS PROJECTS TOLD HER THAT HER READ A MAT WAS MARKETABLE THAT SHE DECIDED TO TAKE THE PLUNGE IT WAS VERY ASSURING TO ME TO PASS THAT TEST OF CREDIBILITY FOR THE PRODUCT AT THAT VERY CRITICAL STAGE SHE SAYS THESE COURSES CAN GIVE YOU THAT KIND OF BENCHMARK OF REALITY PUTTING YOUR PRODUCT IN A VERY REAL CONTEXT ALTHOUGH INSTRUCTORS SAY A COURSE IS NO GUARANTEE OF SUCCESS THEY ADD THAT WITH NO PRIOR KNOWLEDGE IT IS POSSIBLE TO LEARN BUSINESS BASICS IN THE CLASSROOM BUSINESS IS BEST LEARNED BY DOING BUT YOU HAVE TO KNOW AND LOVE WHAT YOU'RE DOING TO BE SUCCESSFUL SAYS MEL EPSTEIN A BUSINESS TEACHER WHO HAS TAUGHT AT THE CAMBRIDGE CENTER FOR ADULT EDUCATION AND THE HARVARD EXTENSION SCHOOL IT IS TOUGH TO START YOUR OWN BUSINESS BUT WE'RE NOT TALKING ABOUT CLIMBING MOUNT EVEREST HERE 9308190093 930819 WHO'S NEWS LURIA'S FINANCIAL CHIEF WALLACE RUIZ RESIGNS MIAMI LAKES FLA L LURIA & SON INC SAID ITS CHIEF FINANCIAL OFFICER WALLACE D RUIZ HAS RESIGNED EFFECTIVE AUG 31 TO PURSUE ANOTHER BUSINESS OPPORTUNITY THE RETAILER SAID IT HAS RETAINED A SEARCH FIRM TO FIND A NEW CHIEF FINANCIAL OFFICER IN ADDITION LURIA NAMED THREE NEW EXECUTIVES TO SHIFT THE COMPANY'S FOCUS FROM A CATALOG SHOWROOM CHAIN TO A SPECIALTY DISCOUNT RETAILER THEY ARE JOSEPH F BOMBARA MIDATLANTIC DIVISION PRESIDENT FOR MCCRORY STORES WHO BECOMES VICE PRESIDENT OF STORES AND OPERATIONS TIMOTHY E KEELEY SENIOR REAL ESTATE MANAGER FOR TOYS R US INC WHO BECOMES DIRECTOR OF REAL ESTATE AND RICHARD MARKS VICE PRESIDENT OF JEWELRY MERCHANDISING AT ROSSSIMONS JEWELERS WHO WAS NAMED VICE PRESIDENT OF JEWELRY MERCHANDISING 9308190092 930819 ON THE NEXT OPRAH WOMEN WHO FOUND THEIR MATES ON BILLBOARDS BY SHAKIRA HIGHTOWER STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON LAURA LOMBARDO'S MOM ALWAYS SAID THAT WHEN HER DAUGHTER MET MR RIGHT THERE'D BE A SIGN WELL HE MAY OR MAY NOT BE MR RIGHT BUT IN FACT THERE WAS A BILLBOARD THE BILLBOARD AND THE PUBLICITY IT GENERATED IN THE LOCAL PRESS RESULTED IN RESPONSES FROM ALMOST 800 WOMEN I WASN'T SHOCKED SAYS DAVID MAY WHO SOLD MR MACHMER THE SPACE HE ADDS THAT ABOUT 192000 PEOPLE PASS THE SIGN DAILY MR MACHMER A 39YEAROLD DIVORCED FATHER SAID THE RESPONSE SURE BEAT STRIKING OUT AT SINGLES BARS AND CHURCH SOCIALS EVER THE ROMANTIC THE GRADUATE STUDENT AND FORMER OIL COMPANY RESEARCHER SAYS HE FIGURED THE BILLBOARD WOULD SAVE MORE TIME AND MONEY BY CUTTING TO THE CHASE IT ALL PROVED TOO MUCH FOR HIS THREE FELLOW WOULDBE ROMEOS OVERWHELMED BY THE DELUGE OF LETTERS EACH CONTACTED A FEW WOMEN BUT THEN ALL THREE CEDED THEIR SHARE OF THE LETTERS TO OTHER INTERESTED BACHELORS THAT'S FINE WITH MR MACHMER HE SAYS HIS THREE FRIENDS NEVER PAID THEIR SHARE OF THE BILLBOARD'S COSTS ANYWAY FOR MS LOMBARDO A 32YEAROLD ADMINISTRATIVE ASSISTANT WHO WORKS AT A PEDIATRIC CENTER ACROSS THE STREET FROM THE BILLBOARD HAVING MR MACHMER CHOOSE TO MEET HER WAS EXCITING IT WAS LIKE I HAD WON A PRIZE SHE SAYS MS LOMBARDO SAYS SHE USUALLY MEETS MEN THROUGH FRIENDS BUT THE BOARD WAS RIGHT THERE AND SO MANY PEOPLE ARE TALKING ABOUT IT SHE WAS THE FIRST OF FIVE WOMEN MR MACHMER HAS MET THROUGH THIS VENTURE THEY'RE ALL NICE GIRLS HE SAYS BUT I'M TAKING MY TIME THERE ARE A LOT OF GIRLS OUT THERE CHANCES ARE HE WILL MEET EVEN MORE AFTER A SCHEDULED APPEARANCE TODAY ON THE NATIONALLY SYNDICATED TELEVISION PROGRAM INSIDE EDITION THE RENTAL OF THE BILLBOARD EXPIRED THIS WEEK BUT FOR NOW THE BILLBOARD COMPANY IS LEAVING THE MESSAGE UP FREEOFCHARGE MR MACHMER ISN'T WORRIED ABOUT HIS MAILBOX OVERFLOWING I'M BRINGING IN MORE GUYS TO SUPPLY THE DEMAND HE SAYS 9308190091 930819 CURTICEBURNS TO SELL 2 UNITS AND MAY PUT ITSELF ON THE BLOCK CURTICEBURNS FOODS INC SAID IT WILL SELL TWO UNPROFITABLE UNITS AS PART OF A RESTRUCTURING PROGRAM AND DISCLOSED THAT IT MAY PUT ITSELF ON THE BLOCK THE RESTRUCTURING WHICH WILL CUT COSTS AND REDUCE THE NUMBER OF PRODUCT LINES RESULTED IN A CHARGE OF 297 MILLION OR 345 A SHARE IN THE FOURTH QUARTER ENDED JUNE 26 INCLUDING THE CHARGE CURTICEBURNS HAD A LOSS OF 28 MILLION OR 325 A SHARE COMPARED WITH NET INCOME OF 22 MILLION OR 25 CENTS A SHARE A YEAR EARLIER SALES FELL 2 TO 212 MILLION FROM 2167 MILLION THE CHARGE ALSO LED TO A LOSS FOR THE YEAR THE ROCHESTER NY PROCESSOR AND MARKETER OF REGIONALLY BRANDED FOOD PRODUCTS SAID IT IS EXPLORING SELLING ITSELF TO PROFAC COOPERATIVE INC WHICH SUPPLIES CURTICEBURNS WITH CROPS AND HELPED FOUND THE COMPANY IT ALSO MIGHT SELL ITSELF TO A THIRD PARTY THE COMPANY SAID AN ALTERNATIVE TO THE SALE WOULD BE ITS PURCHASE OF THE PROPERTY AND EQUIPMENT IT USES FROM PROFAC IN TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE CURTICEBURNS'S CLASS A STOCK CLOSED AT 1375 DOWN 25 CENTS AS PART OF THE RESTRUCTURING THE COMPANY PUT UP FOR SALE ITS MEAT SNACKS BUSINESS AND ITS HILAND POTATO CHIP UNIT WHICH HAD A COMBINED LOSS OF 35 MILLION FOR THE YEAR THE STRATEGY OF MAXIMUM DIVERSIFICATION AND REGIONAL ORIENTATION SERVED US WELL IN PRIOR DECADES BUT THAT STRATEGY WILL NO LONGER GIVE US THE SALES AND EARNINGS GROWTH WE NEED IN THE FOOD BUSINESS OF THE '90S J WILLIAM PETTY PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID 9308190090 930819 FINANCING BUSINESS NATIONSBANK CORP NATIONSBANK CORP SAID IT HAS INCREASED BY 50 MILLION ITS 10YEAR SUBORDINATED NOTE OFFERING THE NOTE OFFERING IS NOW 600 MILLION AND IS PART OF THE CHARLOTTE NC BANK HOLDING COMPANY'S PREVIOUSLY ANNOUNCED 4 BILLION SHELF REGISTRATION FOR DEBT SECURITIES AND STOCK 9308190089 930819 LAW LEGAL BEAT ARBITRATION CAN COST DEFENDANTS MORE THAN JURY TRIAL STUDY SAYS BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL ARBITRATION MUCH TOUTED AS A CHEAP AND FAIR SOLUTION TO MANY LEGAL DISPUTES MAY CARRY A SURPRISING COST FOR DEFENDANTS IN CIVIL SUITS DAMAGE AWARDS MORE FAVORABLE TO PLAINTIFFS THAN WHAT A JURY WOULD HAVE ORDERED THAT'S THE CONCLUSION OF A RECENT STUDY IN CALIFORNIA THAT REVIEWED THE ARBITRATION EXPERIENCE OF THE CALIFORNIA STATE AUTOMOBILE ASSOCIATION A MAJOR CASUALTY INSURER IN NORTHERN CALIFORNIA AND NEVADA THE RESULTS ECHO THE FINDINGS OF OTHER STUDIES THAT HAVE EXAMINED WHETHER JURIES OR SUCH PROFESSIONAL DECISIONMAKERS AS JUDGES AND ARBITRATORS ARE MORE SYMPATHETIC TO VICTIMS IN PERSONALINJURY CASES A LAWYER OR A JUDGE IS MORE LIKELY TO DECIDE IN FAVOR OF THE CLAIMANT AND TO RENDER LARGER AWARDS SAYS MICHAEL J BRADY A LAWYER AT THE REDWOOD CITY CALIF FIRM OF ROPERS MAJESKI KOHN BENTLEY WAGNER & KANE WHO WORKED ON THE STUDY THE RESULTS WERE PUBLISHED IN THE CURRENT ISSUE OF FOR THE DEFENSE A PUBLICATION FOR INSURANCE AND CORPORATE DEFENSE LAWYERS THE STUDY CONTRADICTS A COMMON ASSUMPTION BY CRITICS OF THE CIVIL JUSTICE SYSTEM THAT JURIES HAND OUT UNWARRANTED DAMAGE AWARDS IN CASES INVOLVING PAIN AND SUFFERING BECAUSE THEY ARE TOO EASILY SWAYED BY EMOTION MR BRADY AND PETER R CUBANSKE AN ASSISTANT MANAGER AT THE CALIFORNIA STATE AUTOMOBILE ASSOCIATION EXAMINED 148 CIVIL PERSONALINJURY SUITS AGAINST THE INSURER THAT WENT TO TRIAL IN 1991 CALIFORNIA LIKE MANY STATES REQUIRES LITIGANTS IN CIVIL SUITS WITH RELATIVELY SMALL DAMAGES UNDER 50000 IN CALIFORNIA TO TRY THE CASE BEFORE AN INDEPENDENT ARBITRATOR BEFORE PROCEEDING TO TRIAL BEFORE A JURY THE ARBITRATOR'S FINDING CAN BE REJECTED BY EITHER SIDE BUT IS INTENDED AT LEAST TO SERVE AS A GAUGE OF HOW A JURY MIGHT REACT AND TO ENCOURAGE SETTLEMENTS OR SO THE THEORY GOES MR BRADY FOUND THAT OF 45 CASES IN WHICH THE ARBITRATOR'S DECISION WAS REJECTED AND THE PARTIES WENT TO TRIAL THE JURY'S VERDICT TURNED OUT TO BE BETTER FOR THE DEFENSE THAN THE ARBITRATOR'S AWARD HAD BEEN 73 OF THE TIME MR BRADY ALSO SAID THAT JURIES SEEMED TO COME TO MORE ACCURATE CONCLUSIONS IN THE CASES FROM A DEFENSE POINT OF VIEW ONE REASON HE SPECULATED IS THAT PROFESSIONAL ARBITRATORS TOO OFTEN SEEK COMPROMISE AND AWARD AT LEAST PARTIAL DAMAGES IN CLOSE CASES I REALLY DO THINK A LOT OF THEM ARE PROBABLY SITTING THERE THINKING WHAT KIND OF DECISION CAN I MAKE THAT EVEN THOUGH IT WILL NOT MAKE BOTH SIDES HAPPY BOTH SIDES WILL FIND ACCEPTABLE' SAID MR BRADY JURIES HE ADDED BRING A FRESHER AND MORE DETACHED PERSPECTIVE THAT IS MORE LIKELY TO YIELD AN ALLORNOTHING DECISION ANOTHER PROBLEM SAID MR BRADY IS THE NATURE OF THIS KIND OF ARBITRATION BOTH PLAINTIFF LAWYERS AND ARBITRATORS TEND TO TREAT THE PROCESS CAVALIERLY BECAUSE IT IS NOT FINAL TRIAL BY JURY REMAINS AN OPTION EXPERTS IN ARBITRATION SAID THE FINDINGS MAY BE UNIQUE TO CALIFORNIA LAWYERS WHO SERVE AS ARBITRATORS ARE PICKED FROM RANKS OF PRACTICING ATTORNEYS AND CALIFORNIA HAS LONG BEEN KNOWN AS A STATE WHERE DAMAGE AWARDS ARE HIGH MY ASSUMPTION WOULD BE THAT A MEMBER OF THE BAR WOULD BE CONDITIONED TO LARGER SUMS THAN A LAY JURY SAID JAMES HENRY PRESIDENT OF CENTER FOR PUBLIC RESOURCES INC A NONPROFIT ORGANIZATION THAT FOCUSES ON LITIGATION ALTERNATIVES NONETHELESS THE FINDING THAT JURIES TEND TO BE LESS GENEROUS TO INJURED PLAINTIFFS THAN IS COMMONLY SUPPOSED WAS REFLECTED IN A STUDY PUBLISHED A YEAR AGO BY TWO CORNELL UNIVERSITY LAW PROFESSORS THEODORE EISENBERG AND KEVIN CLERMONT THAT STUDY LOOKED AT ALL 130685 CASES THAT WENT TO TRIAL BEFORE EITHER FEDERAL JUDGES OR JURIES FROM 1979 TO 1989 AND CONCLUDED THAT JUDGES NOT JURIES ARE MORE LIKELY TO SIDE WITH PLAINTIFFS IN SEVERAL MAJOR CATEGORIES OF LITIGATION SPECIFICALLY THE AUTHORS CITED SUITS OVER MEDICAL MALPRACTICE DEFECTIVE PRODUCTS AND AUTOMOBILE ACCIDENTS IN TWO OF THE CATEGORIES MEDICAL MALPRACTICE AND AUTOMOBILE INJURY JUDGES WERE MORE GENEROUS THAN JURIES IN DAMAGE AWARDS TO PLAINTIFFS THE STUDY FOUND THE BIOLOGICAL PARENTS OF A 14YEAROLD FLORIDA GIRL WHO WAS SWITCHED AT BIRTH LOST THEIR BID TO BE DECLARED HER LEGAL PARENTS JUDGE STEPHEN DAKAN IN STATE COURT IN SARASOTA DECLARED THAT THE MAN WHO RAISED THE GIRL KIMBERLY MAYS IS HER LEGAL FATHER BUT JUDGE DAKAN DIDN'T GO AS FAR AS GRANTING MISS MAYS'S REQUEST FOR A DIVORCE FROM HER BIOLOGICAL PARENTS ERNEST AND REGINA TWIGG CHILDREN'S RIGHTS ADVOCATES PRAISED THE DECISION AS PART OF A GROWING TREND OF JUDGES ACKNOWLEDGING CHILDREN'S RIGHTS THE DIFFERENCE IS BETWEEN CHILDREN BEING TREATED AS PEOPLE VS PROPERTY SAID BRENDA RUSSO AN ATTORNEY SPECIALIZING IN CHILDREN'S RIGHTS WHO WASN'T INVOLVED IN THE MAYS CASE MISS MAYS TOOK ACTION AGAINST HER BIOLOGICAL PARENTS AFTER THEY CLAIMED THAT THE MAN WHO RAISED HER ROBERT MAYS WAS INVOLVED IN THE HOSPITAL BABY SWITCH THE BABY TAKEN HOME BY THE TWIGGS DIED OF A HEART DEFECT IN 1988 AND GENETIC TESTS LATER DETERMINED THAT MISS MAYS RATHER THAN THE BABY WHO DIED WAS THEIR DAUGHTER ALTHOUGH COURTS HAVE LONG TERMINATED PARENTAL RIGHTS IN CASES INVOLVING ABUSE WHAT'S UNUSUAL IN THIS CASE IS THAT THE NATURAL PARENTS DIDN'T DO ANYTHING WRONG SAID MS RUSSO OF THE FAIRFIELD CALIF LAW FIRM STAHNKE & RUSSO THEY IN FACT WERE VICTIMS OF A HORRIBLE ERROR AN ATTORNEY FOR THE TWIGGS WHO HAVE SAID THEY WILL APPEAL ALL THE WAY TO THE US SUPREME COURT IF NECESSARY DIDN'T RETURN PHONE CALLS SEEKING COMMENT THE ASSOCIATED PRESS REPORTED THE MASTERMIND OF AN INSIDERTRADING SCHEME THAT RECEIVED INFORMATION ON PENDING DEALS FROM A PARALEGAL AT SKADDEN ARPS SLATE MEAGHER & FLOM WAS SENTENCED TO THREE YEARS' PROBATION IN FEDERAL COURT IN NEW YORK DARRIN GLEEMAN ALSO WAS ORDERED TO PERFORM 300 HOURS OF COMMUNITY SERVICE MR GLEEMAN A 1988 GRADUATE OF THE WHARTON SCHOOL AT THE UNIVERSITY OF PENNSYLVANIA PLEADED GUILTY TO THE INSIDERTRADINGRELATED CHARGES LAST YEAR MR GLEEMAN'S BOYHOOD FRIEND AND CODEFENDANT CHRISTOPHER J GARVEY ALSO PLEADED GUILTY AND WAS GIVEN THE SAME SENTENCE MR GARVEY WAS A PARALEGAL IN THE MERGERSANDACQUISITIONS DEPARTMENT AT NEW YORK LAW FIRM SKADDEN ARPS THE SCHEME GENERATED TOTAL ILLEGAL TRADING PROFITS OF 300000 WHICH THE DEFENDANTS AGREED TO TURN OVER AS PART OF A SETTLEMENT OF A SECURITIES AND EXCHANGE COMMISSION CIVIL SUIT FILED IN THE CASE THE PAYMENT OF THE SETTLEMENT HOWEVER WAS WAIVED BECAUSE OF THE DEFENDANTS' FINANCIAL SITUATION ALSO A DEFENDANT IN THE CASE WAS MR GLEEMAN'S FATHER SEYMOUR GLEEMAN WHO PLEADED GUILTY AND IS AWAITING SENTENCING 9308190088 930819 AUTOZONE SECONDARY OFFERING MEMPHIS TENN AUTOZONE INC SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION A SECONDARY OFFERING OF 55 MILLION COMMON SHARES THE RETAILER OF AUTO PARTS SAID IT WILL ALSO PROVIDE AN OVERALLOTMENT OPTION OF AS MANY AS 825000 SHARES THE SHARES WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS AND GOLDMAN SACHS & CO THE COMPANY SAID JR HYDE III CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL SELL 500000 SHARES OR ABOUT 6 OF HIS HOLDINGS THREE LIMITED PARTNERSHIPS WHICH EACH HAVE KKR ASSOCIATES AS THE GENERAL PARTNER WILL SELL FIVE MILLION SHARES REPRESENTING 13 OF THEIR HOLDINGS KKR ASSOCIATES AN AFFILIATE OF THE PRIVATE INVESTMENT FIRM OF KOHLBERG KRAVIS ROBERTS & CO CURRENTLY OWNS ABOUT 52 OF AUTOZONE'S COMMON STOCK THE SALE OF THE FIVE MILLION SHARES WILL REDUCE THEIR OWNERSHIP TO ABOUT 45 9308190087 930819 NEW MASTERCARD BUSINESS CARD NEW YORK MASTERCARD INTERNATIONAL INC UNVEILED A CREDIT CARD FOR COMPANIES TO BUY OFFICE SUPPLIES AND OTHER ITEMS COSTING 25000 OR LESS ACCORDING TO THE COMPANY THE MASTERCARD PURCHASING CARD IS INTENDED TO SAVE USERS MONEY BY STREAMLINING THE TRADITIONAL SYSTEM OF INVOICES PURCHASE ORDERS AND CHECKS USUALLY REQUIRED FOR PURCHASES OF THAT SIZE MASTERCARD ESTIMATES COMPANIES SPEND 400 BILLION A YEAR ON SUCH PURCHASES OTHER CREDITCARD COMPANIES ARE WORKING ON THEIR OWN VERSIONS OF SUCH CARDS 9308190086 930819 WHO'S NEWS PARAMOUNT COMMUNICATIONS INC PARAMOUNT COMMUNICATIONS INC NEW YORK THIS ENTERTAINMENT AND PUBLISHING COMPANY NAMED GARRETT S HART 42 YEARS OLD PRESIDENT OF THE NETWORK TELEVISION DIVISION OF PARAMOUNT TELEVISION GROUP PREVIOUSLY SENIOR VICE PRESIDENT OF CURRENT PROGRAMS FOR UNIVERSAL TELEVISION A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO MR HART SUCCEEDS JOHN PIKE 46 YEARS OLD WHO LEFT THE COMPANY 9308190085 930819 POLITICS & POLICY CALIFORNIA TAX DISPUTE FORCES CLINTON TO CHOOSE BETWEEN VOTERICH STATE AND TRADING PARTNERS BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BILL CLINTON DID WHAT ANY SENSIBLE PRESIDENTIAL CANDIDATE WOULD DO LAST YEAR WHEN CALIFORNIA'S TAX COLLECTOR PRESSED HIM TO STATE HIS POSITION ON THE STATE'S LONGRUNNING DISPUTE WITH BARCLAYS BANK PLC OF BRITAIN I ASSURE YOU A CLINTON ADMINISTRATION WILL BE PROCALIFORNIA IN THIS LITIGATION CAME THE ANSWER FROM THE CAMPAIGN TRAIL BUT NOW THAT HE'S PRESIDENT MR CLINTON AND HIS ADMINISTRATION ARE FINDING THAT BEING PROCALIFORNIA ISN'T QUITE SO SIMPLE THE REASON SOME OF AMERICA'S MOST IMPORTANT ECONOMIC ALLIES ARE THREATENING AN ALLOUT TAX WAR WITH THE US UNLESS CALIFORNIA RESTRUCTURES ITS CORPORATE TAX SYSTEM FOR THE CLINTON ADMINISTRATION THE ROW ILLUSTRATES HOW PROMISES DISPENSED IN A CAREFREE FASHION DURING THE CAMPAIGN CAN BECOME FAR MORE COMPLICATED AFTER THE ELECTION IS OVER IN THIS CASE IT IS FORCING THE WHITE HOUSE INTO A DELICATE BALANCING ACT BETWEEN FOREIGN AND ECONOMICPOLICY CONCERNS AND AN ELECTORALLY CRUCIAL STATE I'D LIKE TO THINK CLINTON HAS SUPPORTED US BECAUSE WE'RE RIGHT NOT BECAUSE WE HAVE 54 MORE ELECTORAL COLLEGE VOTES THAN THE BRITISH SAYS BRAD SHERMAN THE DEMOCRATIC CHAIRMAN OF CALIFORNIA'S PUBLICLY ELECTED BOARD OF EQUALIZATION WHO RECEIVED MR CLINTON'S PLEDGE LAST YEAR BUT THE FACT IS WE DO HAVE 54 MORE ELECTORAL COLLEGE VOTES THE SPECIFIC CONFLICT CENTERS ON THE STATE'S WORLDWIDE UNITARY METHOD WHICH TAXES MULTINATIONAL CORPORATIONS BASED ON THEIR GLOBAL EARNINGS OPPONENTS CONTEND AMONG OTHER THINGS THAT THIS ARRANGEMENT UNCONSTITUTIONALLY INTERFERES WITH FOREIGN COMMERCE BUT FOR CALIFORNIA THE ECONOMIC STAKES ARE ENORMOUS LOSING THE CASE WOULD COST IT NEARLY 900 MILLION IN TAX REFUNDS AND FORGONE ASSESSMENTS FROM FOREIGNBASED MULTINATIONALS WITH ANOTHER 31 BILLION IN STATE TAX REVENUES FROM USBASED MULTINATIONALS ALSO THREATENED IN THE FALL THE US SUPREME COURT IS EXPECTED TO DECIDE WHETHER OR NOT TO HEAR BARCLAYS'S APPEAL OF ITS LOSS IN THE STATE COURTS BUT FIRST THE SUPREME COURT WANTS TO HEAR FROM THE ADMINISTRATION IN MAY IT ASKED THE JUSTICE DEPARTMENT TO SPELL OUT THE ADMINISTRATION'S VIEW OF THE MATTER AND A REPLY IS LIKELY BY MIDSEPTEMBER NORMAN LAMONT THEN BRITAIN'S CHANCELLOR OF THE EXCHEQUER ANNOUNCED LAST SPRING THAT THE BRITISH ARE PREPARED TO RETALIATE AGAINST US COMPANIES IF THERE IS NOT A SATISFACTORY RESOLUTION OF THE MATTER BY THE END OF THE YEAR INLAND REVENUE BRITAIN'S TAX COLLECTOR HAS ALREADY SENT A LETTER TO HUNDREDS OF USBASED COMPANIES WARNING OF POSSIBLE REPRISALS THE GERMAN PARLIAMENT IS ALSO MAKING THREATS AND A HOST OF OTHER NATIONS FROM CANADA AND JAPAN TO FINLAND AND AUSTALIA HAVE ALSO EXPRESSED DISDAIN FOR THE WORLDWIDE UNITARY SYSTEM SO FAR THE ADMINISTRATION HASN'T DECIDED WHAT COURSE TO TAKE BUT ONE SENIOR AIDE INVOLVED IN THE DELIBERATIONS SUGGESTS THAT AS HIGH AS THE STAKES ARE ABROAD THE ADMINISTRATION CAN'T AFFORD TO STICK IT TO CALIFORNIA A STATE THAT IS CRUCIAL TO THE NATION'S ECONOMY AND TO MR CLINTON'S OWN POLITICAL PROSPECTS IN 1996 IN A SENSE THE WHITE HOUSE ALREADY HAS SIGNALED ITS FEELINGS ABOUT THE MATTER THROUGH ITS CALCULATED SILENCE PRESIDENTS REAGAN AND BUSH BOTH ACTIVELY SUPPORTED THE BARCLAYS POSITION SO THE CLINTON ADMINISTRATION'S FAILURE TO FILE A BRIEF ON BEHALF OF THE BANK IS ITSELF A CHANGE BUT WITH THE PRESSURE MOUNTING FROM OVERSEAS WHAT THE ADMINISTRATION WOULD REALLY LOVE AT THIS POINT IS A WAY OUT AND IT'S HOPING THAT THE CALIFORNIA LEGISLATURE CAN PROVIDE ONE YESTERDAY THE REVENUE AND TAXATION COMMITTEE OF THE STATE SENATE BEGAN HOLDING HEARINGS ON A BILL THAT AIMS TO GIVE MULTINATIONAL COMPANIES AN ATTRACTIVE ALTERNATIVE TO THE WORLDWIDE UNITARY METHOD THE CLINTON ADMINISTRATION HAS BEEN WORKING FOR MONTHS BEHIND THE SCENES TO PUSH THIS LEGISLATION ON THE ASSUMPTION THAT IF IT IS SWEET ENOUGH IT COULD LEAD THE FOREIGN GOVERNMENTS TO BACK DOWN ROBERT RUBIN THE HEAD OF THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL AND TREASURY SECRETARY LLOYD BENTSEN VISITED CALIFORNIA OFFICIALS EARLIER THIS SUMMER TO ENCOURAGE SUCH A SOLUTION THE CLINTON ADMINISTRATION IS TRYING TO GIVE US SOME ROOM TO SOLVE THIS DILEMMA FOR THEM EXPLAINS STATE SENATE STAFFER FRED SILVA ADDING THAT HE REMAINS IN CONSTANT CONTACT WITH TREASURY DEPARTMENT OFFICIALS IN WASHINGTON EVEN MR SHERMAN OF THE BOARD OF EQUALIZATION RECOGNIZES PROBLEMS WITH KEEPING THE CURRENT CORPORATE TAX SYSTEM AS FOREIGN COMPANIES BECOME MORE RELUCTANT TO INVEST IN THE STATE IT'S IN MY INTEREST TO BRING A HIGHER LEVEL OF HAPPINESS TO FOREIGN INVESTORS HE SAYS THIS ISN'T THE FIRST ATTEMPT AT A FIX HOWEVER IN 1988 AFTER CONSIDERABLE PRESSURE FROM THE REAGAN ADMINISTRATION THE STATE BEGAN OFFERING MULTINATIONAL COMPANIES ANOTHER OPTION FOR CALCULATING THEIR TAXES BESIDES THE WORLDWIDE METHOD BUT MANY IN THE BUSINESS COMMUNITY HAVE NEVER BEEN VERY SATISFIED WITH THIS WATER'S EDGE SUBSTITUTE WHICH BASES A COMPANY'S CALIFORNIA TAXES ON THE AMOUNT OF INCOME IT HAS EARNED JUST WITHIN THE US THE COMPANIES COMPLAIN THAT IF THEY ELECT THIS FORMULA THEY'RE FORCED TO PROVIDE THE STATE WITH A CUMBERSOME SPREADSHEET DETAILING THEIR FINANCES THEY ALSO HAVE TO COUGH UP A SPECIAL FEE TIED TO THE SCOPE OF THEIR CALIFORNIA OPERATIONS AND THE STATE CAN STILL UNILATERALLY FORCE THEM BACK INTO THE WORLDWIDE UNITARY SYSTEM A PROVISION KNOWN IN TAX CIRCLES AS THE NUCLEAR BOMB THE BILL NOW BEING CONSIDERED IN SACRAMENTO SEEKS TO MAKE THE WATER'SEDGE METHOD MORE PALATABLE THE GOAL IS TO PASS SOMETHING BEFORE THE LEGISLATURE ADJOURNS NEXT MONTH THAT WOULD PUT THE WHITE HOUSE IN A STRONG POSITION TO ASK THE SUPREME COURT TO NOT HEAR THE BARCLAYS CASE BECAUSE IT'S NO LONGER RELEVANT BUT IT'S FAR FROM CERTAIN THAT EVERYTHING WILL FALL INTO PLACE INDEED THE WORLDWIDE UNITARY METHOD HAS ITS STAUNCH DEFENDERS WHO MAINTAIN THAT IT'S THE MOST EFFECTIVE MEANS TO ENSURE THAT MULTINATIONAL COMPANIES CAN'T ESCAPE PAYING THEIR FAIR SHARE OF US TAXES BY SENDING PROFITS OFFSHORE SOME ALSO SEE IT AS A QUESTION OF STATES' RIGHTS THE NATIONAL GOVERNORS ASSOCIATION FOR INSTANCE HAS ASKED PRESIDENT CLINTON TO BACK CALIFORNIA IN THE BARCLAYS CASE ASSERTING THAT YOUR ACTION CAN HELP STATES RETAIN THEIR STATUS AS VIABLE PARTNERS IN THE FEDERAL SYSTEM IT ISN'T CLEAR WHAT WILL HAPPEN IF THE DISPUTE ISN'T RESOLVED THE BRITISH FOR ONE HAVE SAID THAT THEY MIGHT WITHDRAW CERTAIN TAX CREDITS FOR US FIRMS STARTING WITH THOSE BASED IN CALIFORNIA EVEN IF THE BILL TO CHANGE THE STATE'S TAX SYSTEM PASSES FOREIGN GOVERNMENTS MAY STILL NOT BE SATISFIED SOME HAVE SUGGESTED THAT WHILE THE FUTURE INVESTMENT CLIMATE IN CALIFORNIA MAY BE IMPROVED THE LEGISLATION DOESN'T ADEQUATELY ADDRESS THEIR GRIEVANCES FROM YEARS GONE BY IT IS THIS DEGREE OF PASSION THAT THE CLINTON CAMP MAY NOT HAVE BEEN PREPARED FOR ASKED IF HE CAN THINK OF ANOTHER MATTER IN WHICH THE FEELINGS RUN SO DEEP JAMES CARTER GENERAL COUNSEL FOR A GROUP REPRESENTING FOREIGNOWNED COMPANIES OPERATING IN THE US RESPONDS YOU MEAN BESIDES ABORTION 9308190083 930819 WHO'S NEWS MCAFEE ASSOCIATES INC MCAFEE ASSOCIATES INC SANTA CLARA CALIF WILLIAM LARSON 37 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF THIS SOFTWARE CONCERN MR LARSON WHO WAS VICE PRESIDENT OF SALES AND MARKETING AT SUN MICROSYSTEMS INC'S SUNSOFT UNIT SUCCEEDS COMPANY FOUNDER JOHN MCAFEE 47 WHO WILL CONTINUE AS CHAIRMAN 9308190082 930819 AT&T RIVALS FACE OFF IN WIRELESS WARS BABY BELLS PLAN TO PRESS US TO RELAX CURBS BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL DESPITE ALARMS SOUNDED BY THE BABY BELLS REGULATORS AND LAWMAKERS AREN'T EXPECTED TO STOP AMERICAN TELEPHONE & TELEGRAPH CO FROM SCOOPING UP MCCAW CELLULAR COMMUNICATIONS INC NOR FOR ALL THEIR WORRIES ABOUT AT&T REASSEMBLING THE BELL SYSTEM ARE THE BABY BELLS PLOTTING A FIERCE CAMPAIGN TO BLOCK THE AT&T JUGGERNAUT THEIR STRATEGY IS TO USE THE AT&TMCCAW ALLIANCE TO WIN GREATER FREEDOM TO ENTER NEW BUSINESSES AT THE FEDERAL COMMUNICATIONS COMMISSION THE BELLS WILL PUSH FOR A LEVEL PLAYING FIELD WITHIN THE CELLULAR ARENA AT&T THEY BELIEVE SHOULDN'T HAVE GREATER ABILITY THAN OTHER CELLULAR COMPANIES TO PACKAGE CELLULAR PHONE AND LONGDISTANCE SERVICES AND EQUIPMENT PURCHASES AND ON CAPITOL HILL BELL EXECUTIVES BELIEVE THE MERGER PACT IS ANOTHER WEDGE TO SPLIT THE CONSENT DECREE THAT BROKE UP THE BELL SYSTEM NEARLY 10 YEARS AGO WHAT I WANT IS NOT TO KEEP AT&T OR ANYBODY ELSE OUT SAYS WILLIAM FERGUSON CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NYNEX CORP BASED IN WHITE PLAINS NY WHAT I WANT IS TO OPEN UP THE MARKETPLACE TO FREE AND OPEN COMPETITION LET US OFFER THE SAME SERVICES AT&T CAN OFFER THE BELLS WANT CONGRESS TO ENACT LEGISLATION THAT WOULD LET THEM PROVIDE LONGDISTANCE SERVICE AND MANUFACTURE TELEPHONE EQUIPMENT THE TWO BUSINESSES THE CONSENT DECREE BARS THEM FROM ENTERING IN ADDITION THEY WANT CONGRESS TO REVERSE A PROVISION IN THE 1984 CABLE ACT THAT PROHIBITS THEM FROM PROVIDING CABLETELEVISION SERVICE WITHIN THEIR TELEPHONE TERRITORIES IT IS TIME TO LET ALL COMPANIES COMPETE EQUALLY SAYS EDWARD E WHITACRE JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SOUTHWESTERN BELL CORP IN SAN ANTONIO TEXAS IF THIS TRANSACTION IS GOING TO BE APPROVED THE BELL COMPANIES SHOULD BE FREED TO OFFER LONGDISTANCE SERVICES AND MANUFACTURING AT THE SAME TIME WITH REASON THE SEVEN BELL COMPANIES FEAR AT&T WILL USE THE MCCAW NETWORK TO OFFER WIRELESS PHONE SERVICE TO CONSUMERS AND BUSINESSES GNAWING AWAY AT THE LOCAL PHONE BUSINESS MONOPOLY THE REGIONAL BELL COMPANIES ARE WORRIED ABOUT ACCESS BUSINESS BECAUSE THEY ARE SLOWLY BUT SURELY SEEING THEIR MARKET ERODE SAYS FCC COMMISSIONER ANDREW BARRETT ANALYSTS FIGURE THAT ACCESS CHARGES THE FEES PAID BY LONGDISTANCE COMPANIES TO LOCAL PHONE COMPANIES TO COMPLETE LONGDISTANCE CALLS ACCOUNT FOR ROUGHLY HALF OF LOCAL TELEPHONE COMPANY PROFITS IT WON'T HAPPEN IN THE NEXT FEW YEARS BUT AS WIRELESS TECHNOLOGIES EVOLVE AND PRICES FOR WIRELESS PHONE SERVICE PLUNGE MANY EXPERTS FORESEE A DAY WHEN ORDINARY PHONE CALLS WILL RIDE THE RADIO WAVES JUST AS EFFICIENTLY AS THEY TRAVEL THROUGH WIRES TODAY MCCAW'S NETWORK CAN REACH ABOUT 35 OF THE US POPULATION THE THREAT WILL GROW AS AT&T AND A HOST OF OTHER COMPANIES LAUNCH PERSONAL COMMUNICATIONS SERVICES WIRELESS TELEPHONE AND DATA SERVICES OVER SMALL POCKETSIZED PHONES AND COMPUTERS THE BELLS FACE MORE IMMEDIATE COMPETITION PERHAPS FROM EACH OTHER AND FROM CABLE COMPANIES UNDER AN ALLIANCE ANNOUNCED EARLIER THIS YEAR FOR EXAMPLE U S WEST INC IS REBUILDING CABLE NETWORKS FOR TIME WARNER INC TO CARRY TWOWAY VIDEO AS WELL AS TELEPHONE CALLS ON TOP OF THAT A NUMBER OF ALTERNATIVEACCESS COMPANIES SUCH AS METROPOLITAN FIBER SYSTEMS AND TELEPORT COMMUNICATIONS GROUP OWNED BY FOUR CABLE TV COMPANIES HAVE SPRUNG UP TO CONNECT CORPORATIONS DIRECTLY TO LONGDISTANCE CARRIERS CONSUMER GROUPS WELCOME THE NEW COMPETITION BUT ARGUE THAT IT ISN'T TIME TO FREE THE BABY BELLS THE MERGER WILL HAVE NO IMMEDIATE EFFECT ON THE LOCAL TELEPHONE MARKET STRUCTURE SAYS GENE KIMMELMAN LEGISLATIVE DIRECTOR FOR THE CONSUMER FEDERATION OF AMERICA THE MORE PLAYERS USING DIFFERENT TECHNOLOGIES THE GREATER THE LIKELIHOOD THAT CONSUMERS WILL BENEFIT FROM NEW SERVICES AND LOWER PRICES IF AT&T'S OWN REGULATORY COURSE SETS THE PRECEDENT REGULATORS AND LAWMAKERS WON'T LIKELY GRANT THE BELLS EXTENSIVE NEW FREEDOM UNTIL THEIR MARKET SHARES DROP 25 POINTS OR MORE FROM TODAY'S LOFTY 99 LEVEL AT&T'S MARKET SHARE IS ABOUT 60 AND THE COMPANY STILL FACES SUBSTANTIAL REGULATION NEVERTHELESS THE AT&TMCCAW ANNOUNCEMENT IS POWERFUL EVIDENCE THAT THE FUTURE IS WIRELESS SAYS REP EDWARD MARKEY THE MASSACHUSETTS DEMOCRAT WHO HEADS THE HOUSE TELECOMMUNICATIONS SUBCOMMITTEES ALTHOUGH HE AND OTHER LAWMAKERS PLAN TO EXAMINE THE TRANSACTION NONE HAVE EXPRESSED STRONG OPPOSITION ONE WILD CARD IS THE JUSTICE DEPARTMENT ANNE K BINGAMAN THE NEW HEAD OF THE AGENCY'S ANTITRUST DIVISION TOLD THE AMERICAN BAR ASSOCIATION'S ANTITRUST SECTION THAT SHE IS AN UNABASHED AND ENTHUSIASTIC SUPPORTER OF VIGOROUS ANTITRUST ENFORCEMENT A JUSTICE DEPARTMENT SPOKESWOMAN DECLINED TO COMMENT ON THE AT&TMCCAW PLANS OTHER THAN TO SAY THE DEPARTMENT WILL CAREFULLY REVIEW THEM SEE RELATED STORY TELECOMMUNICATIONS PLAYERS BOAST DEEP POCKETS TECHNOLOGY WSJ AUG 19 1993 9308190081 930819 BANISTER INC UNIT GETS CONTRACT TORONTO BANISTER INC SAID ITS JACKSONLEWIS CO BUILDING SUBSIDIARY RECEIVED A CONTRACT VALUED AT 36 MILLION CANADIAN DOLLARS US274 MILLION TO FINISH THE INTERIOR OF SEVERAL STORIES OF A NEW TOWER AT VANCOUVER GENERAL HOSPITAL IN BRITISH COLUMBIA BANISTER A TORONTOBASED CONSTRUCTION CONCERN SAID WORK AT THE HOSPITAL IS EXPECTED TO BE COMPLETED IN MID1995 9308190080 930819 BUSINESS BRIEF SNYDER OIL CORP CHARGE OF 462000 SLATED TO RETIRE SOME DEBT EARLY SNYDER OIL CORP SAID IT WILL TAKE A THIRDQUARTER CHARGE OF 462000 FOR EARLY RETIREMENT OF DEBT THE FORT WORTH TEXAS OIL AND GAS CONCERN SAID IT RETIRED 10 MILLION PRINCIPAL AMOUNT OF ITS 13 1/2 SUBORDINATED NOTES SUBSEQUENTLY REACQUIRED AT A PREMIUM FOR THE YEARAGO THIRD QUARTER SNYDER OIL REPORTED NET INCOME OF 45 MILLION OR 15 CENTS A SHARE THE COMPANY ADDED THAT ITS PERMTEX ENERGY EXPLORATION AND DEVELOPMENT VENTURE IN RUSSIA RECEIVED APPROVALS FROM THE RUSSIAN GOVERNMENT THAT AUTHORIZE PERMTEX TO BEGIN DOING BUSINESS THE VENTURE OWNS RIGHTS TO EXPLORE AND DEVELOP 300000 ACRES IN THE VOLGAURALS BASIN ABOUT 70 MILES EAST OF MOSCOW 9308190079 930819 OUR PENSIONS PENSIONS RIPE FOR DEMOCRATS' PLUCKING BY DAVID ANDREW PRICE TAX INCREASES AREN'T THE ONLY DEVICE THAT THE CLINTON ADMINISTRATION HAS IN MIND FOR RAISING MONEY ONE ENORMOUS POOL OF TAXPAYERS' MONEY IS STILL JUST SITTING THERE MORE THAN 2 1/2 TRILLION WORTH AND TOTALLY UNTAPPED BY THE FEDS UP TO NOW IT'S A BIG SPENDER'S FANTASY COME TRUE SO IT SHOULD COME AS NO SURPRISE THAT THE ADMINISTRATION HAS ALREADY DECLARED ITS INTENTION TO PUT THIS MONEY TO USE WHERE ARE THESE NEWLY FOUND RICHES IN THE PENSION PLANS OF AMERICA'S WORKERS THE PENSION FUNDS ARE THE LATEST TRENDIEST TARGET OF DEMOCRATIC POLICY MAKERS THE CLINTON CAMPAIGN BOOK PUTTING PEOPLE FIRST PROMISED TO REVAMP AMERICA'S COMMUNICATIONS TRANSPORTATION AND ENVIRONMENTAL SYSTEMS BY USING FEDERAL MONEY LEVERAGED WITH PENSION FUND CONTRIBUTIONS LIKEWISE HOUSING SECRETARY HENRY CISNEROS TOLD THE SENATE BANKING COMMITTEE DURING HIS CONFIRMATION HEARINGS THAT HE WOULD TAP THE PENSION FUNDS FOR INVESTMENTS IN LOWINCOME HOUSING AND HE HAS ALREADY STARTED TO FOLLOW THROUGH ANNOUNCING A PILOT PROJECT ON JUNE 21 THAT WILL USE 660 MILLION FROM THE AFLCIO PENSION FUND OLENA BERG ASSISTANT LABOR SECRETARY FOR PENSION AND WELFARE BENEFITS IS ALSO SAID TO FAVOR SUCH PLANS AREN'T PENSION FUNDS SUPPOSED TO BE FOR THE BENEFIT OF WORKERS AND RETIREES YES HAS THAT PRINCIPLE KEPT GOVERNMENT AWAY NO A FEW STATES AND LOCALITIES SUCH AS MASSACHUSETTS AND NEW YORK CITY HAVE ALREADY BEGUN DIRECTING A PORTION OF STATE EMPLOYEES' PENSION FUNDS INTO SOCIALLY DESIRABLE INVESTMENTS SUCH AS LOWINCOME HOUSING ONE OF THOSE FUNDS THE KANSAS PUBLIC EMPLOYEES RETIREMENT SYSTEM LOST MORE THAN 100 MILLION ON SOCIALLY TARGETED INVESTMENTS IN THE 1980S AT THE FEDERAL LEVEL THE PENSION RAID WOULD MOST LIKELY WORK IN TWO WAYS CURRENTLY FEDERAL LAW REQUIRES THAT PRIVATE PENSION PLANS BE INVESTED SOLELY FOR THE BENEFIT OF THE WORKERS AND RETIREES AND THAT THE FUNDS BE INVESTED PRUDENTLY THESE REQUIREMENTS WOULD BE MODIFIED SO THAT PENSIONFUND MANAGERS COULD MAKE TYPES OF INVESTMENTS CONSIDERED SOCIALLY DESIRABLE EG INFRASTRUCTURE AND HOUSING WITHOUT HAVING TO WORRY ABOUT THEIR OWN LIABILITY SECOND AS SUGGESTED IN CHANGING AMERICA THE RECENT LIBERAL VERSION OF THE HERITAGE FOUNDATION'S MANDATE FOR LEADERSHIP OF THE EARLY 1980S A GOVERNMENTAL OR QUASIGOVERNMENTAL ORGANIZATION WOULD SELL BONDS TO BE REPAID BY THE REVENUES FROM A GROUP OF PROJECTS AND THE BONDS WOULD BE GUARANTEED BY THE FEDERAL GOVERNMENT THIS IS WHAT CANDIDATE CLINTON MEANT BY LEVERAGING RATHER THAN SPEND 20 BILLION OF FEDERAL MONEY A YEAR DIRECTLY ON INFRASTRUCTURE THE FEDS CAN USE THE SAME 20 BILLION AS A RESERVE TO GUARANTEE 200 BILLION IN PENSION INVESTMENTS OR EVEN 400 BILLION IT'S MAGIC ONLY IT ISN'T MAGIC IF THESE HOUSING AND INFRASTRUCTURE PROJECTS WERE GOOD INVESTMENTS THERE WOULD BE INVESTORS FOR THEM ALREADY ALBEIT AT A HIGHER INTEREST RATE THE EFFECT OF THE FEDERAL GUARANTEE IS SIMPLY TO TAKE AWAY MARKET DISCIPLINE TODAY IN EXCHANGE FOR POTENTIALLY MASSIVE TAXPAYER LIABILITY TOMORROW JUST AS IN THE SAVINGS AND LOAN CRISIS WHETHER THE RISKS ARE FOISTED ON THE PENSION FUNDS OR ON TAXPAYERS IN GENERAL THE PROPOSAL IS HARDLY ANY LESS LARCENOUS THAN THE SWEETHEART LOANS THE MOB TOOK FROM THE TEAMSTERS CENTRAL STATES PENSION FUND IN THE 1960S AND 1970S IN FACT IF THE PROPOSALS TO TAP THE COUNTRY'S PENSIONS BECOME REALITY THE RESULTS COULD EASILY BE WORSE THAN THE S&L CRISIS THIS IS HARD TO IMAGINE BUT IT IS A GENUINE POSSIBILITY IN THE S&L CRISIS THE TAXPAYERS HAD ON THEIR SIDE A CADRE OF EXAMINERS WHO WERE COMMITTED TO PREVENTING THE FRAUD AND MISMANAGEMENT THAT WOULD THREATEN THE DEPOSIT INSURANCE FUNDS ON THE OTHER SIDE THERE WERE ONLY THE S&L OWNERS A WELLFINANCED BUT NUMERICALLY VERY SMALL CONSTITUENCY THAT WANTED THE EXAMINERS HELD AT BAY UNDER THOSE COMPARATIVELY FAVORABLE CONDITIONS THANKS IN PART TO THE INTERVENTION OF JIM WRIGHT TONY COELHO AND OTHERS IN CONGRESS THE TAXPAYERS ENDED UP WITH HUNDREDS OF MILLIONS OF DOLLARS IN LIABILITY NOW FLASH FORWARD TO THE YEAR 2003 HUNDREDS OF HOUSING AND INFRASTRUCTURE PROJECTS HAVE DEFAULTED AND THE GUARANTEE FUND HAS LONG SINCE BEEN CLEANED OUT IT WAS INEVITABLE BECAUSE THE PROJECTS WERE ALWAYS RUN BY INDIVIDUALS WITH A MANDATE TO SERVE THEIR CLIENTELE NOT TO PROTECT THE TAXPAYERS AT THIS POINT THE GUARANTEES HAVE ALREADY IMPOSED TAXPAYER LIABILITY ON THE SCALE OF THE S&L BAILOUT YET THE PROJECTS HAVE A MASSIVE CONSTITUENCY WITH THE POLITICAL CLOUT TO INSIST THAT THE TAXPAYERS NOT ONLY PAY OFF THE DEFAULTED PROJECTS BUT ALSO CONTINUE TO GUARANTEE NEW ONES THE WAY TO AVOID THAT SCENARIO IS TO KEEP THE PENSION FUNDS WORKING FOR THOSE WHO HAVE EARNED THE RIGHT TO PARTICIPATE IN THEM AMERICANS MUST NOT LET THEIR PENSION FUNDS BECOME YET ANOTHER TOOL FOR FEDERAL BUDGETARY GIMMICKS MR PRICE IS AN ATTORNEY IN WASHINGTON 9308190078 930819 INTERNATIONAL RULING PARTY IN TAIWAN REELECTS LEE AS CHAIRMAN TAIPEI TAIWAN THE RULING KUOMINTANG PUT ON A DISPLAY OF UNITY BY OVERWHELMINGLY REELECTING PRESIDENT LEE TENGHUI AS PARTY CHAIRMAN ON THE THIRD DAY OF A SOMETIMES CONTENTIOUS WEEKLONG CONGRESS THE PARTY FOR THE FIRST TIME VOTED FOR THE CHAIRMAN POST IN A SECRET BALLOT IN 1988 WHEN PRESIDENT LEE FIRST WAS ELECTED CHAIRMAN DELEGATES VOTED BY STANDING UP THE CONGRESS ALSO APPROVED WITH A NEARLY UNANIMOUS DISPLAY OF HANDS A SLATE OF FOUR CANDIDATES WHO WILL SERVE AS VICE CHAIRMEN OF THE PARTY A NEW POSITION THE CANDIDATES WERE NOMINATED BY PRESIDENT LEE AND VOTED ON AS A GROUP IN AN EFFORT TO HEAL THE RIFTS THAT LED TO AN OUT AND OUT BRAWL ON TUESDAY DURING THE DEBATE OVER CREATING THE POSTS MR LEE NOMINATED SENIOR FIGURES FROM FACTIONS THAT AT TIMES HAVE BEEN CRITICAL OF HIS LEADERSHIP THE FOUR VICE CHAIRMEN ARE VICE PRESIDENT LEE YUANTZU FORMER PREMIER HAU PEITSUN THE HEAD OF THE JUDICIAL BRANCH OF TAIWAN'S GOVERNMENT LIN YANGKANG AND THE CURRENT PRIME MINISTER LIEN CHAN THE KUOMINTANG NEEDS TO BOLSTER AMITY IN ADVANCE OF A TOUGH ELECTION CAMPAIGN FOR LOCAL GOVERNMENT POSTS IN NOVEMBER THE PARTY COULD LOSE SEVERAL COUNTY MAGISTRACIES IF IT IS UNABLE TO IMPROVE ITS IMAGE BRUISED BY ALLEGATIONS OF CORRUPTION AND MONEY POLITICS 9308190077 930819 HOW TO GET AHEAD OF HIGH BEER TAXES VISIT A LOCAL UBREW SHOPS WHERE CANADIANS MAKE THEIR OWN HAVE BECOME POPULAR GATHERING PLACES BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO CANADIANS RARELY ARE MODEST ABOUT BEER CERTAINLY NOT DOUGLAS ALLES A COMPUTER CONSULTANT WHO MAKES HIS OWN IT'S THE BEST YOU CAN DRINK BOASTS MR ALLES OFFERING A VISITOR A SIP OUTSIDE THE INDUSTRIAL BUILDING WHERE HE AND OTHER AMATEUR BREWERS TOIL IN AIR STICKY WITH MALT HOPS AND THE HEAT OF BOILING LIQUORS IT'S ANOTHER NIGHT AT THE UBREW WHAT LAUNDROMATS ARE TO CLOTHES CANADA'S UBREWS ARE TO THE THIRSTY AND THE HEAVILY TAXED HERE FOR ABOUT 90 CANADIAN DOLLARS WOULDBE BREWMASTERS LEGALLY CAN WHIP UP A 13GALLON BATCH OF POTENT SUDS IN PLACE OF COMMERCIAL BREWERIES' BIG BUILDINGS ELABORATE PLUMBING AND COMPUTERIZED CHILLERS UBREWS OFFER STOREFRONT OR WAREHOUSE SPACE HUGE METAL POTS PLASTIC TUBS LOTS OF WELLUSED BEER BOTTLES RECIPES AND SOME KNOWHOW LOWTECH PERHAPS BUT LOWCOST TOO UBREWS SIDESTEP FEDERAL BEER TAXES AND MOST PROVINCIAL TAXES IN A LAND WHERE BEER LEVIES ARE HUGE A SIXPACK OF DOMESTIC BREW GOES FOR THE EQUIVALENT OF US535 AS MUCH AS DOUBLE THE US COST DODGING THE TAXMAN IS A HEADY INCENTIVE FOR BEER QUAFFERS THE FIRST UBREW STARTED SIX YEARS AGO IN LONDON ONTARIO WITH THE IDEA THAT BEER LOVERS WOULD BE HAPPY TO RENT EQUIPMENT MAKE A MESS AWAY FROM HOME AND SAVE SOME MONEY TWO YEARS AGO THERE WERE ONLY 40 OUTLETS IN ALL OF ONTARIO NOW THERE ARE 250 BREWITYOURSELF OPERATIONS FROM NORTHERN LUMBER TOWNS WHERE LAGER HAS NEW MEANING TO DOWNTOWN TORONTO WHERE YUPPIES EXPERIMENT WITH DESIGNER BREWS LIKE GROUND HOG ALE AND BLACK KNIGHT BITTER ONTARIO'S AMATEURS LAST YEAR PRODUCED AN ESTIMATED 56 MILLION GALLONS OF BEER ROUGHLY 3 OF THE PROVINCE'S OUTPUT IN OUR BUSINESS THOSE ARE HUGE NUMBERS SAYS JAN WESTCOTT EXECUTIVE DIRECTOR OF BREWERS OF ONTARIO AN INDUSTRY LOBBYING GROUP WHICH HAS PERSUADED THE PROVINCE TO APPLY A PARTIAL TAX ON THE NONCOMMERCIAL BEER A CULTURE HAS GROWN AT THE UBREWS WHERE FRIENDS GATHER USUALLY ON WEEKNIGHTS MOST BUDDING BREWERS SAY THEY START BECAUSE OF THE SAVINGS THEN ENJOY THE CAMARADERIE IT'S AN EXCUSE TO GET TOGETHER EVERY THREE WEEKS SAYS MARK BAKER A LAWYER WHO BREWS BEER WITH A COUPLE OF FRIENDS AT TORONTO'S SELECT BREWING SERVICES INC IT'S BETTER THAN BOWLING AND NO ONE'S GOING TO GET MAD AT YOU IF YOU'RE HOME BY 1015 IT TAKES ABOUT TWO HOURS TO PREPARE A BATCH OF BEER FOR FERMENTATION THREE WEEKS LATER IT TAKES ANOTHER TWO HOURS TO BOTTLE A BATCH MAKES THE EQUIVALENT OF 24 SIXPACKS SO MOST BUDDING BREWERS ARRIVE WITH FRIENDS AND MAKE A SOCIAL EVENT OF IT IT'S ILLEGAL TO DRINK BEER AT A UBREW A RULE PERHAPS HONORED AS MUCH IN THE BREACH AS IN THE OBSERVANCE THERE'S SOMETHING OF A PARTY ATMOSPHERE AT SELECT BREWING AS COMPUTER CONSULTANT JAY ROSSER AND THREE FRIENDS BATCH UP SOME JAY'S BEST BITTER AN AWARDWINNING RECIPE INVENTED A FEW YEARS AGO BY JAMES TURNER A COOWNER OF SELECT BREW OTHER CONCOCTIONS ARE FAVORED HERE TOO BISHOPS TIPPLE A HEADY BRITISH LIQUOR THAT FOLKS HERE SUGGEST SHOULD BE ADMINISTERED BY EYEDROPPER AND HORNDEAN BEST BITTER THE PERSONAL PREFERENCE OF MR ALLES THE COMPUTER CONSULTANT MR ROSSER AND TINA PRATES A TEACHER ARE DRESSED FOR MESSY WORK IN BAGGY JEANS AND SPORT SHIRTS THEY START THEIR BEST BITTER BY CRACKING THE SPIGOT ON A DRUM OF MALT EXTRACT AND WEIGHING THE STICKY LIQUID AS IT OOZES INTO A BUCKET SIGRID BLOHM CRANKS A HAND MILL NEARBY TO CRUSH PEARL WHITE AND CHOCOLATE BROWN MALTED BARLEYS AND PETER BRUER A TENANT ORGANIZER MEASURES OUT PELLETS OF COMPRESSED HOPS WHOSE HERBAL TRACES GIVE THE RECIPE A DISTINCTIVE BITTER FLAVOR IF THIS BEER TURNS OUT TO BE LOUSY WE'LL BLAME YOU MR BRUER JOSHES MS BLOHM A GRAPHICS DESIGNER WHEN SHE COMMITS THE MINOR NONO OF STIRRING THE HOPS RATHER THAN LETTING THEM STEEP THE GROUP BOILS ALL OF THIS MIXTURE IN A WAISTHIGH KETTLE MAKING WORT OR UNFERMENTED BEER A UBREW EMPLOYEE PUMPS THIS SWEET BROWN LIQUID INTO A PLASTIC FERMENTATION BARREL THEN MR BRUER ADDS THE YEAST IN JAY'S BEST BITTER AN ALE THE YEAST WILL FLOAT ATOP THE WORT DURING FERMENTATION IN LAGERS YEAST DOES ITS WORK AT THE BOTTOM IN THREE WEEKS JAY'S BEST BITTER WILL BE READY EMPLOYEES AT THE UBREW WILL FILTER AND CARBONATE THE BEER BEFORE MR ROSSER AND FRIENDS RETURN TO CAP IT ON THE SHOP'S BOTTLING MACHINE UBREWS USUALLY ARE STEAMY PLACES WITH A CLOYINGLY SWEET SMELL IN THE AIR AS MALT AND HOPS ARE BOILED MS BLOHM SAYS SHE FINDS THE SMELL APPEALING LIKE BAKING BREAD TO OTHERS IT IS CLAUSTROPHOBIC SOME PLACES ARE GUSSIED UP MANY ARE AIRCONDITIONED THOUGH PURISTS AND PENURIOUS OWNERS ARGUE THAT IT RUINS THE TASTE OF THE BEER POLISHED WOODEN FLOORS COPPER COOKING POTS INSTEAD OF STAINLESS STEEL AND EVEN HANGING PLANTS ARE FOUND IN UPSCALE ESTABLISHMENTS ONE UBREW EVEN HAS A MICROSCOPE TO ANALYZE YEAST THE LOOK AT SELECT BREWING WHERE LOYAL CUSTOMERS PRODUCE 300 BATCHES A MONTH THE EQUIVALENT OF 1800 CASES IS MORE RUDIMENTARY WITH CRACKED CONCRETE FLOORS EVEN SO IT CATERS MORE TO EXPERIMENTALLY MINDED CONNOISSEURS THE EMPHASIS IN MOST PLACES IS ON PLAINER STUFF THAT MIMICS MAINSTREAM CANADIAN BREWS PREDICTABLY COMPETITION HAS GROWN IN THIS BURGEONING BUSINESS IN LONDON SEVEN UBREWS NOW SERVE A POPULATION OF ABOUT 300000 THE PHENOMENON HASN'T CAUGHT ON IN THE US WHERE BEER PRICES ARE FAR LOWER ALTHOUGH CANADIAN INVESTORS RECENTLY OPENED ONE IN LOS ANGELES HOPING THAT AFICIONADOS MAY WANT TO MAKE EXOTIC ALES BEER TAXES ARE SKYHIGH IN OTHER CANADIAN PROVINCES BUT LEGAL CONSTRAINTS USUALLY PREVENT TAXFREE BREWING OUTSIDE THE HOME BRITISH COLUMBIA IS THE ONLY OTHER PROVINCE THAT ALLOWS UBREWS IT HAS ABOUT TWO DOZEN OF THEM CONFRONTED WITH SOARING VOLUMES OF AMATEUR OUTPUT ONTARIO'S POWERFUL COMMERCIAL BREWERS BEGAN TO COMPLAIN LAST SPRING DEMANDING EQUAL TAXATION FOR CONSUMER AND CORPORATION ALIKE THE INDUSTRY GOT ITS WAYSORT OF ON AUG 1 ONTARIO BEGAN TAXING UBREW OUTPUT AT ROUGHLY ONETHIRD OF COMMERCIAL RATES A TAX THAT BOOSTED AMATEURS' COSTS TO ABOUT TWOTHIRDS OF RETAIL COMMERCIAL BEER PRICES FROM HALF PREVIOUSLY BUT ONCE UNLEASHED THE UBREW PHENOMENON APPEARS HARD TO STOP PROFITABLE BREWITYOURSELF OUTLETS ARE BEGINNING TO OFFER DISCOUNTS TO PARTIALLY OFFSET THE NEW TAX THEN TOO SOME FANS SAY THEY'RE TOO HOOKED TO STOP SAYS GARY FURLONG A MANAGEMENT CONSULTANT I'D STILL BE DOING IT IF THE COST WERE THE SAME AS THE COMMERCIAL STUFF 9308190076 930819 KODAK TO CUT 8 OF WORK FORCE OR 10000 JOBS MOVE VIEWED AS FIRST STEP AS WHITMORE LEAVES SPENDING CUTS PLANNED BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL EASTMAN KODAK CO CHAIRMAN KAY R WHITMORE WHO WAS OUSTED IN JULY AND WILL LEAVE WHEN A SUCCESSOR IS NAMED SAID THE COMPANY WILL CUT 10000 JOBS OR ABOUT 8 OF ITS WORK FORCE BY 1995 AND CUT SPENDING TO INCREASE CASH FLOW BUT PEOPLE CLOSE TO THE COMPANY SAID THE BOARD VIEWS MR WHITMORE'S MOVES AS A FIRST STEP IN A CONTINUING PROCESS THAT WILL BE CARRIED OUT BY HIS SUCCESSOR KODAK IS EXPECTED TO NAME A NEW CHAIRMAN AND CHIEF EXECUTIVE OFFICER BY YEAR END INDEED IN HIS LETTER TO SHAREHOLDERS YESTERDAY MR WHITMORE SAID KODAK'S BOARD EXPECTS FASTER AND FURTHER MOVES THAN THOSE HE ANNOUNCED IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE SHARES OF THE ROCHESTER NY PHOTOGRAPHY CHEMICALS AND HEALTHCARE CONCERN CLOSED AT 60375 UP 125 CENTS IN HIS LETTER MR WHITMORE SAID MOST OF THE JOB CUTS WILL COME IN KODAK'S CORE IMAGING GROUP WHICH MAKES CONSUMER FILM COPIERS AND OTHER PRODUCTS SINCE THE JOB REDUCTIONS COINCIDE WITH CUTS IN CAPITAL SPENDING AND CAPS ON RESEARCH AND ADVERTISING SPENDING THEY WILL LIKELY COME FROM THE RANKS OF MIDDLE MANAGEMENT NOT BLUECOLLAR WORKERS THE 61YEAROLD MR WHITMORE HAD ORIGINALLY PLANNED TO ANNOUNCE THE JOB CUTS COST CUTS AND CASHFLOW TARGETS AS PART OF A TURNAROUND PLAN TO BE DELIVERED NEXT MONTH BUT THE BOARD SACKED HIM SAYING HIS PLAN FELL SHORT OF ITS EXPECTATIONS ESPECIALLY IN THE AREA OF COSTCUTTING MR WHITMORE SAID HIS PLANS FOR JOB AND COST CUTS WILL HELP KODAK ACHIEVE 700 MILLION IN CASH FLOW THIS YEAR 1 BILLION NEXT YEAR AND 11 BILLION IN 1995 LAST YEAR CASH FLOW WAS 146 MILLION IN THE NEAR TERM THE SAVINGS WILL BE USED TO REDUCE KODAK'S DEBT OUR GOAL IS TO MOVE OUR CREDIT RATING TO A STRONG SINGLE A FROM OUR CURRENT ARATING MR WHITMORE WROTE AT THE END OFLAST YEAR KODAK'S DEBT WAS 89 BILLION THE DEBT IS EXPECTED TO BE REDUCED BY 2 BILLION WHEN KODAK COMPLETES ITS PREVIOUSLY ANNOUNCED SPINOFF OF ITS EASTMAN CHEMICAL UNIT ANALYSTS AGREED WITH THE BOARD THAT THE MOVES MR WHITMORE ANNOUNCED AREN'T ENOUGH TO TURN AROUND KODAK WHERE SLUGGISH FILM SALES HAVE FAILED TO KEEP UP WITH INCREASED SPENDING IN RECENT YEARS KODAK'S LUCRATIVE FILM FRANCHISE HAS LOST MARKET SHARE TO ARCHRIVAL FUJI PHOTO FILM CO AS WELL AS LOWERPRICED PRIVATELABEL COMPETITORS IF THIS IS THE PROGRAM MR WHITMORE PLANNED TO UNVEIL IN SEPTEMBER I'M SURPRISED IT TOOK THEM AS LONG AS IT DID TO FIRE HIM PRUDENTIAL SECURITIES ANALYST B ALEX HENDERSON SAID MR HENDERSON SAID HE WAS HOPING FOR A TOTAL OF 25000 TO 30000 JOB CUTS WHICH COULD PRODUCE DOUBLE THE CASHFLOW ESTIMATES MR WHITMORE PROVIDED DEAN WITTER ANALYST EUGENE GLAZER SAID HE WOULD BE SATISFIED IF KODAK CUT A TOTAL OF 20000 WORKERS THAT COULD RESULT IN COST SAVINGS OF ABOUT 15 BILLION HE SAID BUT THE SAVINGS WOULDN'T COME QUICKLY BECAUSE IT WOULD TAKE TIME FOR KODAK TO RESTRUCTURE ITSELF AROUND FEWER WORKERS OTHER ANALYSTS SAID THEY HAVE NO SPECIFIC TARGETS FOR JOB CUTS BUT THEY WERE ENCOURAGED THE BOARD SAID THANKS BUT NO THANKS' THAT'S THE POSITIVE NEWS SAID FIRST BOSTON ANALYST JACK BLACKSTOCK BY PROPOSING TO CAP NOT CUT SPENDING ON RESEARCH AND DEVELOPMENT AND ADVERTISING MR WHITMORE IMPLIED THAT HE WAS LARGELY RELYING ON INCREASED SALES TO GENERATE THE CASH FLOW HE HAS PROMISED TO DELIVER BUT THAT STRATEGY HAS FAILED HIM IN THE PAST BY REJECTING IT KODAK'S BOARD INDICATED THAT IT CAN'T SIT AROUND AND WAIT FOR THE ECONOMY TO BAIL US OUT SAID GOLDMAN SACHS ANALYST JACK KELLY MR WHITMORE'S LETTER REPEATED A PROMISE MADE EARLIER THIS YEAR THAT KODAK WOULD REDUCE CAPITAL SPENDING TO THE LEVEL OF DEPRECIATION THE LETTER ALSO SAID THE COMPANY WOULD PURSUE OPPORTUNITIES TO TURN ASSETS INTO CASH A KODAK SPOKESMAN WOULDN'T SPECULATE ON WHAT ASSETS MIGHT BE PUT ON THE BLOCK BY MR WHITMORE OR A NEW CEO MR WHITMORE WASN'T AVAILABLE FOR COMMENT THE ASSET SALES AS WELL AS THE JOB CUTS WOULD BE SEPARATE FROM KODAK'S PLANS TO SPIN OFF EASTMAN CHEMICAL IN HIS LETTER MR WHITMORE SEEMED TO CONTRADICT HIMSELF ABOUT JUST HOW URGENTLY KODAK NEEDS TO CUT COSTS FOR INSTANCE HE TOLD SHAREHOLDERS THAT THE BOARD IS GENERALLY PLEASED WITH THE CURRENT PROGRESS MADE BY MANAGEMENT TO DEVELOP A PLAN TO TURN AROUND KODAK BUT THEN ADDED THAT HE WAS ASKED TO STEP DOWN PRECISELY BECAUSE HIS PROGRESS DIDN'T MEET THE BOARD'S EXPECTATIONS MR WHITMORE ALSO STRESSED THAT KODAK IS NOT IN CRISIS UNDERLINING THE WORD NOT BUT IN THE NEXT PARAGRAPH WROTE THAT IT IS CLEAR WE MUST CHANGE MORE AND FASTER 9308190075 930819 WHO'S NEWS FORD MOTOR NAMES CASPERS CHAIRMAN OF ITS GERMAN UNIT BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT FORD MOTOR CO NAMED A NEW CHAIRMAN ALBERT CASPERS FOR ITS GERMAN UNIT EFFECTIVE IMMEDIATELY AND SAID IT HADN'T YET DETERMINED A NEW ASSIGNMENT FOR THE FORMER CHAIRMAN THE GERMAN PRESS HAS CARRIED REPORTS FOR SEVERAL DAYS THAT JOHN E HARDIMAN CHAIRMAN OF FORD WERKE AG SINCE 1989 WAS GOING TO BE REPLACED BECAUSE OF FORD'S PROBLEMS IN THE GERMAN MARKET HOWEVER A FORD SPOKESMAN YESTERDAY CHARACTERIZED THE MOVE AS PART OF NORMAL MANAGEMENT CHANGES FORD HAS BEEN HURT BY THE CRASH IN THE GERMAN MARKET IN 1992 AND 1993 BEYOND THAT FORD'S SHARE OF THE GERMAN CAR MARKET HAS SLID TO 94 FROM 102 IN 1991 IN ADDITION FORD OF EUROPE'S DECISION TO CONCENTRATE PRODUCTION IN GERMANY AND THEN SELL MANY OF THE VEHICLES BUILT THERE IN ITALY BACKFIRED LAST YEAR WHEN THE GERMAN MARK SOARED AGAINST THE ITALIAN LIRA LAST YEAR FORD SAID IT PLANNED TO SLASH 10000 EMPLOYEES FROM ITS EUROPEAN OPERATION IN 1993 AND TOOK A 419 MILLION SPECIAL CHARGE TO COVER THE EXPENSE IN A RECENT GOVERNMENT FILING FORD SAID IT WAS UNLIKELY THAT IT WOULD MAKE MONEY AT FORD OF EUROPE IN 1993 AND SAID ADDITIONAL RESTRUCTURING AT FORD'S EUROPEAN AUTOMOTIVE OPERATIONS MAY BE NECESSARY IF THE EUROPEAN ECONOMY CONTINUES TO DECLINE THE NEW CHAIRMAN MR CASPERS WILL CONTINUE TO SERVE AS VICE PRESIDENT OF ENGINEERING FOR FORD OF EUROPE MR CASPERS 60 YEARS OLD WAS BORN IN GERMANY AND JOINED FORD WERKE IN 1958 IN ADDITION FORD SAID THAT IT WAS NAMING HEINZ SOIRON 54 TO THE NEWLY CREATED POST OF DEPUTY CHAIRMAN OF FORD'S GERMAN UNIT MR SOIRON CURRENTLY MANAGING DIRECTOR OF FORD SPAIN IS A FORMER DIRECTOR OF MARKETING AND DISTRIBUTION FOR THE GERMAN UNIT IN A PREPARED STATEMENT JACQUES NASSER CHAIRMAN OF FORD OF EUROPE SAID THE APPOINTMENT OF MR CASPERS AND MR SOIRON RECOGNIZES THE CENTRAL IMPORTANCE OF FORD WERKE AG TO FORD IN EUROPE AND WILL ALLOW CLOSER COORDINATION OF OUR MANUFACTURING ENGINEERING AND SALES OPERATION AS A FURTHER STEP IN THE SUCCESSFUL RESTRUCTURING ACTION IMPLEMENTED EARLIER THIS YEAR 9308190074 930819 LETTERS TO THE EDITOR EARLY ZIONIST LEADERS RESCUED EUROPEAN JEWS IN HER JULY 15 LEISURE & ARTS REVIEW OF TOM SEGEV'S THE SEVENTH MILLION AMY DOCKSER MARCUS PROMOTES MR SEGEV FROM JOURNALIST TO HISTORIAN TO SCHOLAR IN TWO SENTENCES MR SEGEV DOES NOT MERIT THESE TWO PROMOTIONS HE IS AN ADVOCACY JOURNALIST WHO STARTS WITH A CONCLUSION SELECTING AND TRIMMING HIS MATERIAL TO MAKE HIS CASE MS DOCKSER MARCUS SUMS UP MR SEGEV'S CONCLUSION THE EARLY ZIONIST LEADERS HAD A CHANCE DURING THE HOLOCAUST TO SAVE JEWS IN EUROPE BUT DIDN'T BELIEVE THAT SUCH A TASK WAS THEIR RESPONSIBILITY MR SEGEV'S TENDENTIOUS EFFORT AT REVISIONIST HISTORY IS CHALLENGED BY THE BOOK OF A GENUINE SCHOLAR DINA PORAT SENIOR LECTURER IN JEWISH HISTORY AT TEL AVIV UNIVERSITY MS PORAT'S THE BLUE AND YELLOW STARS OF DAVID THE ZIONIST LEADERSHIP IN PALESTINE AND THE HOLOCAUST 19391945 PUBLISHED BY HARVARD UNIVERSITY PRESS CONCLUDED HOWEVER ISRAELIS TODAY HAVE LONG SINCE FORGOTTEN OR ARE UNAWARE OF THE DIFFICULTIES FACING THE YISHUV THE JEWISH COMMUNITY IN PALESTINE UNDER THE BRITISH MANDATORY AUTHORITY AT THE TIME IT WAS A MINORITY IN A COUNTRY RULED BY FOREIGNERS IT WAS A SOCIALNATIONAL EXPERIMENT IN ITS EARLY STAGES ITS RESOURCES IN MANPOWER MONEY AND ARMS WERE SMALL NOR DO THEY REALIZE THAT FOR ALL ITS LIMITATIONS AND IN THE FACE OF THE EFFICIENCY OF THE GERMAN DEATH MACHINE AND THE INTERFERENCE OF THE ALLIES THE YISHUV IN FACT DID MORE THAN IT WAS EVER GIVEN CREDIT FOR EITHER THEN OR NOW MR SEGEV AND THE NEW SCHOOL OF ISRAELI HISTORIANS CITED BY MS DOCKSER MARCUS REWRITE HISTORY TO DEPRECATE THE REMARKABLE ACHIEVEMENTS OF THE YISHUV IN RESCUING EUROPEAN JEWISH SURVIVORS AND IN OTHER STRUGGLES AGAINST OVERWHELMING ODDS THESE LEFTWING JOURNALISTS HOPE IN THE EYES OF THE RISING GENERATION THUS TO SCREDIT AS CHAUVINISM ISRAELI NATIONAL PRIDE WHICH THEY SEE AS A THREAT TO THE POLITICAL FUTURE OF THE ISRAELI LEFT 9308190073 930819 WHO'S NEWS IBM NAMES CLAFLIN TO DISTRIBUTION POST FOR ITS PC PRODUCTS ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP NAMED BRUCE CLAFLIN AS PRESIDENT OF IBM PERSONAL COMPUTER CO AMERICAS MR CLAFLIN HAD BEEN GENERAL MANAGER OF MOBILE COMPUTING WHICH INCLUDES THE COMPANY'S HIGHLY ACCLAIMED THINKPAD LINE OF NOTEBOOK COMPUTERS IN THE NEW POST HE SUCCEEDS SAM INMAN III WHO HAS RESIGNED TO BECOME PRESIDENT AND CHIEF OPERATING OFFICER OF INGRAM MICRO INC SANTA ANA CALIF INGRAM MICRO IS ONE OF THE COUNTRY'S LARGEST DISTRIBUTORS OF COMPUTER PRODUCTS INCLUDING IBM'S PRODUCT LINE IN HIS NEW POST MR CLAFLIN WILL BE RESPONSIBLE FOR THE DISTRIBUTION AND MARKETING OF IBM'S PC PRODUCTS MR CLAFLIN'S UNIT IS IN TURN A SUBSIDIARY OF IBM PERSONAL COMPUTER CO THAT UNIT NAMED ANTHONY E SANTELLI GENERAL MANAGER OF CONSUMER SYSTEMS FOR THE PC UNIT TO BE PRESIDENT OF IBM PC PRODUCTS A NEW POSITION THAT REPORTS TO ROBERT J CORRIGAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF IBM PERSONAL COMPUTER CO 9308190072 930819 COCACOLA CHINESE VENTURE HONG KONG COCACOLA CO SAID THE KERRY GROUP ONE OF ITS CHINESE JOINT VENTURES SIGNED A LETTER OF INTENT TO BUILD A BOTTLING PLANT IN CHINA THE SOFTDRINK PLANT WHICH WILL COST ABOUT 30 MILLION WILL BE BUILT IN THE CITY OF WUHAN THE FACILITY IS ONE OF 10 COKE BOTTLING PLANTS PLANNED FOR CHINA'S INLAND CITIES OVER THE NEXT FIVE YEARS SAID THE ATLANTABASED COLA COMPANY 9308190071 930819 MARKETSCAN SOME FIRMS BUCK PRICETRIMMING TREND BY KATHLEEN DEVENY BARGAIN HUNTERS BEWARE AT A TIME WHEN SOME OF THE NATION'S MOST POWERFUL MARKETERS ARE SLASHING THE PRICES OF EVERYTHING FROM DIAPERS TO CIGARETTES PLENTY OF OTHERS ARE TAKING THE OPPOSITE TACK THEY ARE QUIETLY INCREASING PRICES OR CAJOLING CONSUMERS TO BUY NEW MORE EXPENSIVE VERSIONS OF THEIR BRANDS KELLOGG CO FOCUSED ATTENTION ON THE TREND LAST MONTH WHEN IT ANNOUNCED A 21 RISE IN CEREAL PRICES ITS THIRD INCREASE THIS YEAR BUT MAKERS OF PRODUCTS RANGING FROM COLD REMEDIES TO CAT LITTER HAVE ALSO MANAGED TO COAX CONSUMERS UP THE PRICE LADDER ALTHOUGH CONSUMERS AREN'T WILLING TO PAY UP IN EVERY CASE THE STRATEGY HAS WORKED FOR MANY PRODUCTS AND FOR BELEAGUERED MARKETERS OF BIG BRANDS THE GOOD NEWS IS THAT EVEN IN THESE DAYS OF FIERCE PRICE CONSCIOUSNESS AT LEAST SOME CONSUMERS WILL STILL PAY A PREMIUM FOR CERTAIN PRODUCTS A SURVEY OF RETAIL PRICES CONDUCTED BY INFORMATION RESOURCES INC EXCLUSIVELY FOR THE WALL STREET JOURNAL SHOWS THAT GROCERY SHOPPERS PAID MORE FOR A DIVERSE GROUP OF PRODUCTS DURING THE 52 WEEKS ENDED JUNE 20 COMPARED WITH THE PREVIOUS YEAR THE AVERAGE PRICE PER EQUIVALENT UNIT WAS CALCULATED FOR BRANDNAME ITEMS ONLY AND DOES NOT REFLECT SAVINGS FROM COUPONS OR MAILIN REBATE OFFERS CONSUMERS SHELLED OUT ABOUT 20 MORE FOR ICEDTEA DRINKS THAN THEY DID A YEAR AGO FOR EXAMPLE WHILE THE AVERAGE PRICE OF PREPARED FROSTING JUMPED 109 THE AVERAGE PRICE OF COTTAGE CHEESE ROSE 65 AND THE PRICE OF BABY FOOD INCREASED 46 AND THE PRICES OF SUCH MUNDANE ITEMS AS BATH SOAP AND FACIAL TISSUE GREW 45 AND 4 RESPECTIVELY TO BE SURE SUPERMARKETS HAVE BEEN SLASHING PRICES ON THOUSANDS OF ITEMS TO BETTER COMPETE AGAINST SUCH FORMIDABLE NEW RIVALS AS WAREHOUSE CLUBS IN ADDITION MARKETERS LIKE PROCTER & GAMBLE CO AND PHILIP MORRIS COS HAVE BEEN TAKING AIM AT PRIVATELABEL COMPETITORS BY CUTTING PRICES ON SOME OF THEIR BIGGEST BRANDS IT IS DEFINITELY HARDER THAN IT USED TO BE TO RAISE PRICES SAYS NOMI GHEZ A FOOD ANALYST AT GOLDMAN SACHS & CO BUT IT'S NOT IMPOSSIBLE SOME MARKETERS SAY THEY AREN'T GOUGING CONSUMERS WITH PRICE INCREASES BUT ARE MERELY PASSING ALONG INCREASED COMMODITY COSTS AND OTHER EXPENSES FOR EXAMPLE RISING PRICES OF RAW MILK EARLIER THIS YEAR HAVE INCREASED THE COST OF MAKING COTTAGE CHEESE ACCORDING TO A SPOKESMAN FOR BORDEN INC SIMILARLY KELLOGG CO BLAMES RISING CEREAL PRICES ON INCREASING COSTS ALTHOUGH A SPOKESMAN FOR THE WORLD'S LARGEST CEREAL COMPANY DECLINES TO SPECIFY WHICH ARE INCREASING THE MAJORITY OF THE PRICE BOOSTS HOWEVER HAVE FAR MORE TO DO WITH MARKETING THAN MANUFACTURING A WAVE OF NEW ICEDTEA PRODUCTS BACKED BY SUCH POWERFUL MARKETERS AS COCACOLA CO AND PEPSICO INC CAUGHT CONSUMERS' FANCY AND PERSUADED THEM TO PAY MORE FOR THE PRODUCT SIMILARLY TOOTHBRUSH MARKETERS HAVE CLEANED UP BY SPINNING OUT NEW PRODUCTS WITH SUCH IMPROVED FEATURES AS RIPPLED BRISTLES AND HANDLES WITH TINY SHOCK ABSORBERS PRICES WERE UP AN AVERAGE OF 5 AND DOLLAR SALES INCREASED ALMOST 14 BRANDS WITH LARGE MARKET SHARES HAVE MORE PRICE FLEXIBILITY EVEN IN TOUGH ECONOMIC TIMES CAMPBELL SOUP CO WHICH DOMINATES THE MARKET FOR CANNED SOUP AND FACES LITTLE COMPETITION FROM PRIVATELABEL PRODUCTS INCREASED ITS SOUP PRICES ABOUT 5 DURING THE PAST YEAR THE COMPANY SAYS THAT IT STILL OFFERS LARGERSIZED PACKAGES AS BUDGET OPTIONS FOR CONSUMERS WHO FRET PRIMARILY ABOUT PRICE BUT IT ADDS THAT MANY OTHER SHOPPERS WILL FORK OVER SLIGHTLY HIGHER PRICES FOR THEIR FAVORITE BRANDS INFORMATION RESOURCES REPORTS THAT DOLLAR SALES OF SOUP INCREASED 73 DURING THE RECENT 52WEEK PERIOD THE DEATH OF BRANDS HAS BEEN GREATLY EXAGGERATED SAYS BARBARA KAHN AN ASSOCIATE PROFESSOR OF MARKETING AT THE WHARTON BUSINESS SCHOOL IT MAY BE MORE DIFFICULT TO RAISE PRICES NOW SHE SAYS BECAUSE OF THE LONG ECONOMIC SLUMP AND THE INCREASING SOPHISTICATION OF CONSUMERS BUT IF YOU GIVE CONSUMERS PERCEIVED VALUE THEY'LL STILL PAY A HIGHER PRICE THAT'S THE THINKING BEHIND NEW HIGHER PRICED DR SCHOLL'S FOOTCARE PRODUCTS ROLLED OUT IN MARCH BY A UNIT OF SCHERINGPLOUGH CORP THE COMPANY DETERMINED THROUGH MARKET RESEARCH THAT SOME HEAVY USERS OF ITS PRODUCTS FELT ITS INSOLES DIDN'T LAST LONG ENOUGH AT THE SAME TIME IT SET OUT TO REACH THE GROWING NUMBER OF AGING BOOMERS WHO WERE BEGINNING TO EXPERIENCE ACHY FEET THE COMPANY RELAUNCHED THE ENTIRE BRAND ADDING 18 NEW ITEMS AMONG THE INNOVATIONS CUSHIER MORE DURABLE INSOLES AND TOE SQUISH PREVENTERS PADS MEANT TO KEEP WOMEN'S FEET FROM BEING SQUASHED INTO THE POINTY TOES OF HIGHHEELED SHOES TO REACH CONSUMERS WHO AREN'T IN THE HABIT OF BUYING INSOLES THE COMPANY SAYS IT WILL SPEND 20 MILLION TO PROMOTE THE BRAND SOME 9 MILLION OF THAT WILL BE SPENT ON MEDIA INCLUDING ONE TELEVISION COMMERCIAL THAT SHOWS A SUMO WRESTLER ON THE SHOULDERS OF A MAN DRESSED IN A BUSINESS SUIT IN AN EFFORT TO ILLUSTRATE THE POUNDING CONSUMERS' FEET TAKE EVERY DAY THE COMPANY IS ALSO TUCKING COUPONS FOR THE NEW PRODUCTS IN PACKAGES OF ITS EXISTING LINE WE RECOGNIZED WE HAVE TWO TIERS OF CONSUMERS SAYS FRED FRITZ SENIOR VICE PRESIDENT OF FOOTCARE MARKETING AND SALES FOR SCHERINGPLOUGH IF THOSE PEOPLE SEE A BETTER PERFORMING PRODUCT THEY'LL PAY A LOT MORE FOR IT THEY'LL HAVE TO DR SCHOLL HAS RETAINED ITS TRADITIONAL AIR PILLO INSOLES WHICH SELL FOR ABOUT 2 BUT ITS NEW MAXIMUM COMFORT PRODUCTS RANGE IN PRICE FROM 5 TO 9 THERE ARE ALWAYS CONSUMERS WHO ARE WILLING TO PAY MORE THAN OTHERS SAYS STEVE ROTH A DIRECTOR FOR RESEARCH INTERNATIONAL CONSULTING IN NEW YORK FIGURING OUT WHO THOSE CONSUMERS ARE IS CRITICAL TO NEW PRODUCT DEVELOPMENT INNOVATIVE PRODUCTS AIMED AT ONE SUCH CONSUMER GROUP URBAN CAT OWNERS HAVE ALLOWED EVEN MAKERS OF LOWLY CAT LITTER TO PERSUADE CONSUMERS TO TRADE UP FOR YEARS CATBOX FILLER HAS CONSISTED MOSTLY OF BAGS OF CLAY MORE RECENTLY HOWEVER NEARLY EVERY MAJOR MANUFACTURER HAS LAUNCHED A VERSION OF CLUMPING FILLER WHICH IS MADE FROM A HIGHLY ABSORBENT MATERIAL THAT SOLIDIFIES AROUND LIQUID THE NEW LITTER WHICH ALLOWS FOR EASIER CLEANUP AND COMES PACKAGED IN MORE PORTABLE PLASTIC JUGS ALREADY ACCOUNTS FOR AS MUCH AS A THIRD OF CATEGORY SALES CATLITTER PRICES ROSE MORE THAN 8 IN THE YEAR ENDED JUNE 20 RESULTING IN A 12 INCREASE IN DOLLAR SALES THERE HAS BEEN INNOVATION IN THE CATEGORY SAYS JOHN GOODCHILD PRESIDENT OF WEIGHTMAN GROUP AN ADVERTISING AGENCY IN PHILADELPHIA THAT HANDLES THE ACCOUNT OF GOLDEN CAT CORP MAKER OF THE LEADING TIDY CAT BRAND IF YOU GIVE CONSUMERS SOMETHING THEY WANT YOU CAN SHARE IN THE VALUE THE STRATEGY ISN'T FOOLPROOF THOUGH GERBER PRODUCTS CO THE LARGEST MAKER OF BABY FOOD WATCHED ITS SALES AND MARKET SHARE SLIDE AFTER IT INCREASED PRICES 55 LAST SEPTEMBER AVERAGE BABY FOOD PRICES ROSE 46 DURING THE RECENT 52WEEK PERIOD ACCORDING TO INFORMATION RESOURCES AND OVERALL SALES OF BABY FOOD MEASURED IN POUNDS SANK 38 WHILE DOLLAR SALES WERE FLAT 9308190070 930819 DIVIDEND NEWS CFSB BANCORP INC CFSB BANCORP INC LANSING MICH ANNOUNCED A 4FOR3 STOCK SPLIT THE DIVIDEND WILL BE DISTRIBUTED SEPT 15 TO STOCK OF RECORD AUG 31 THE SPLIT EXPANDS THE NUMBER OF SHARES OUTSTANDING 33 TO ABOUT 3725000 SHARES 9308190069 930819 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN CHINESE ECONOMIC DEVELOPMENT ZONES NOW CONCENTRATED ON THE EASTERN COAST WILL BE OPENED INLAND AND IN WESTERN RIVERSIDE REGIONS TO HELP BRIDGE THE GAP BETWEEN FLOURISHING COASTAL AREAS AND THE LARGELY POOR AND UNDERDEVELOPED HINTERLAND THE ZONES WHICH OFFER TAX BENEFITS TO ATTRACT FOREIGN INVESTMENT AND TRADE WOULD GIVE THE AREAS A MUCHNEEDED ECONOMIC LIFT SHIFTING ZONES TO THE WEST ALSO IS A STEP TOWARD A UNIFIED CHINESE TRADE POLICY A PREREQUISITE FOR ADMITTANCE TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE INVESTORS WOULD FIND IT EASIER TO TAP CHINA'S VAST NATURAL RESOURCES AND TO WORK WITH MILITARY INDUSTRIES WHICH ARE SHELTERED IN INLAND AREAS AND ARE INCREASINGLY TURNING TO CIVILIAN PRODUCTION MEANWHILE GOVERNMENT EFFORTS TO COOL SPECULATION HAVE HAD INITIAL SUCCESS NEW CONSTRUCTION AND PURCHASES OF RAW MATERIALS SLOWED IN JULY AND BANKS RECOVERED 308 BILLION IN BAD LOANS ITALIAN POLICE ARRESTED FOUR FOREIGNERS IN CONNECTION WITH AN ALLEGED PLOT TO SMUGGLE 75 MILLION OF SOPHISTICATED WEAPONRY FROM EASTERN EUROPE TO THE MIDDLE EAST THE FOUR ALLEGEDLY SIGNED A CONTRACT TO SUPPLY TANKS AND RADAR DEFENSE SYSTEMS PLUS TECHNICAL ASSISTANCE TO TWO UNIDENTIFIED MIDEAST COUNTRIES THAT ARE UNDER WESTERN ARMS EMBARGOES THE CONTRACT HAD BEEN SIGNED BY YUGOSLAVIA BUT WAS CEDED TO ANOTHER UNIDENTIFIED EAST EUROPEAN COUNTRY AFTER WAR FLARED IN THE BALKANS THE SUSPECTS THREE NATIONALS OF THE FORMER YUGOSLAVIA AND A BRITON USED ROME AS A BASE WITH THE ARMS DESTINED FOR DELIVERY THROUGH A BLACK SEA PORT A FIRE DESTROYED MOST OF A LANDMARK 14THCENTURY COVERED WOODEN BRIDGE IN LUCERNE SWITZERLAND AND CAUSED EXTENSIVE DAMAGE TO MORE THAN 100 HISTORICAL PAINTINGS THAT HAVE ADORNED THE 200YARD CHAPEL BRIDGE SINCE THE EARLY 17TH CENTURY THE CAUSE OF THE BLAZE WASN'T KNOWN A 13THCENTURY WATER TOWER AT ONE END OF THE BRIDGE WAS SPARED BUT FIREFIGHTERS COULDN'T KEEP THE BRIDGE'S CENTRAL SECTION FROM COLLAPSING INTO THE REUSS RIVER THE BRIDGE WAS PART OF THE OLD CITY'S DEFENSIVE WALL MUCH OF WHICH STILL STANDS CHINA'S FIRST RULES ON MANAGING NUCLEAR POWER PLANT ACCIDENTS PUT THE ARMY FIRMLY IN COMMAND OF RESCUE EFFORTS IN AN EMERGENCY THE REGULATIONS COVER EMERGENCY PREPARATIONS DISSEMINATION OF INFORMATION AND DISTRIBUTION OF FUNDS AND MATERIALS FOR RESCUE WORK CHINA HAS ONE NUCLEAR POWER PLANT IN OPERATION THE 300MEGAWATT FACILITY AT QINSHAN IN CENTRAL ZHEJIANG PROVINCE CONCERNS ABOUT SAFETY STANDARDS GREW AFTER AN AUG 5 BLAST AT A SHENZHEN DANGEROUSMATERIAL DEPOT THAT KILLED AT LEAST 15 PEOPLE NIPPON CARBURETOR CO A JAPANESE AUTO PARTS MAKER AFFILIATED WITH NISSAN MOTOR CO PLANS TO DISMISS ITS FOREIGN WORKERS BY MARCH 1995 TO DEAL WITH SLUMPING SALES THE DISMISSALS AT THE PLANT IN ATSUGI PART OF A RESTRUCTURING PLAN WILL BEGIN IN OCTOBER MOST OF THE 70 WORKERS AFFECTED ARE ETHNIC JAPANESE FROM BRAZIL THE COMPANY'S FISCAL 1994 PRODUCTION COULD BE HALVED BECAUSE OF THE DEPRESSED AUTO MARKET NIPPON CARBURETOR HAS HAD LOSSES FOR THE PAST TWO FISCAL YEARS CRIPPLED BY ECONOMIC TROUBLES INCLUDING RUNAWAY INFLATION OF MORE THAN 15 A DAY YUGOSLAVIA'S REMAINING REPUBLICS ONCE AGAIN SHARPLY DEVALUED THE NATIONAL CURRENCY A DOLLAR IS NOW OFFICIALLY WORTH 105 MILLION DINARS COMPARED WITH THE PREVIOUS RATE OF 49 MILLION DINARS BLACKMARKET DEALERS ALREADY ARE OFFERING 152 MILLION DINARS INTERNATIONAL SANCTIONS IMPOSED IN MAY 1992 BECAUSE OF THE BOSNIAN WAR HAVE WRECKED THE ECONOMY FEARING SOCIAL UNREST YUGOSLAV AUTHORITIES HAVE INDISCRIMINATELY PRINTED MONEY FURTHER FUELING INFLATION WOMEN GRADUATING FROM JAPANESE COLLEGES NEXT YEAR FACE THE TOUGHEST JOB MARKET IN YEARS AS THE SLUGGISH ECONOMY FORCES COMPANIES TO RAISE HURDLES AND SHRINK RECRUITMENT OPPORTUNITIES TRADITIONALLY JAPANESE BLUECHIP FIRMS ISSUE JOB OFFERS BY THE SECOND WEEK OF JULY WOMEN WHO HAVE SOME PRIOR CONNECTION TO LARGE COMPANIES WERE FIRST TO GET OFFERS BUT THOSE WITH A GAP BETWEEN HIGH SCHOOL AND COLLEGE OR WHO GREW UP ABROAD ARE STRUGGLING THERE WILL BE ONLY 79 JOB OPENINGS IN APRIL 1994 FOR EVERY 100 FEMALE COLLEGE STUDENTS COMPARED WITH 93 OPENINGS THIS YEAR AND 158 OPENINGS IN 1991 SOME COMPANIES ARE TELLING FEMALE CANDIDATES THEY WON'T HIRE WOMEN THIS YEAR AND OTHERS REFUSE TO GIVE THEM COMPANY MATERIALS THE LABOR MINISTRY WARNED BUSINESSES LAST MONTH TO OBSERVE ANTIDISCRIMINATION LAWS AND IT SET UP SPECIAL DESKS FOR WOMEN TO GET ADVICE AND REPORT UNFAIR TREATMENT BY EMPLOYMENT OFFICERS HOWEVER SOME SMALL AND MEDIUMSIZE COMPANIES ARE WILLING TO RECRUIT COMPETENT WOMEN AND HAVE OPENINGS FOR NEXT YEAR MOST TRAIN TRAFFIC WAS RESTORED IN ROMANIA AFTER THOUSANDS OF STRIKING RAIL WORKERS GAVE IN TO A GOVERNMENT ULTIMATUM TO RETURN TO WORK OR LOSE THEIR JOBS A SOUTH KOREAN COURT LEGALIZED WASHING CUSTOMERS' FEET AT BARBER SHOPS RULING THAT IT WASN'T A SEXUAL SERVICE OFFICIALS IN CHINA'S HAINAN PROVINCE ARE RAISING FUNDS TO MAKE A TOURIST ATTRACTION OUT OF A MOUNTAIN THAT IS SAID TO LOOK JUST LIKE REVOLUTIONARY LEADER MAO TSETUNG 9308190068 930819 DIVIDEND NEWS GENERAL NUTRITION CO GENERAL NUTRITION CO PITTSBURGH THE SPECIALTY RETAILER OF VITAMIN AND MINERAL SUPPLEMENTS AND PERSONAL CARE AND FITNESS PRODUCTS SAID IT DECLARED A 2FOR1 COMMON STOCK SPLIT WHICH WILL BE EFFECTED AS A 100 STOCK DIVIDEND PAYABLE OCT 5 TO SHAREHOLDERS OF RECORD SEPT 7 THE COMPANY SAID THE STOCK SPLIT IS SUBJECT TO SHAREHOLDER APPROVAL OF AN INCREASE IN THE NUMBER OF AUTHORIZED COMMON SHARES TO AN AMOUNT THAT WOULD PERMIT THE PROPOSED SPLIT GENERAL NUTRITION SAID IT PLANS TO INCREASE THE NUMBER OF AUTHORIZED COMMON SHARES TO 100 MILLION FROM THE CURRENT 42 MILLION THE COMPANY'S BOARD HAS SET A SPECIAL SHAREHOLDER MEETING FOR SEPT 30 FOR THE VOTE ON THE PROPOSED INCREASE A SPOKESMAN FOR GENERAL NUTRITION SAID IT CURRENTLY HAS 18790687 COMMON SHARES OUTSTANDING 9308190067 930819 INTERNATIONAL THOMSON'S RCA UNIT IS NO TV BONANZA FRENCH COMPANY NARROWS LOSSES AT US ACQUISITION BY ES BROWNING STAFF REPORTER OF THE WALL STREET JOURNAL INDIANAPOLIS WHEN THE FRENCH GOVERNMENT TOOK OVER A US INDUSTRIAL ICON IT LEARNED SOMETHING TEENAGERS DISCOVER WHEN THEY FIX UP A '57 THUNDERBIRD THE PURCHASE PRICE MAY BE HIGH BUT THE UPKEEP IS MURDEROUS THOMSON CONSUMER ELECTRONICS SA OF FRANCE BOUGHT THE LEGENDARY RCA CONSUMER ELECTRONICS BUSINESS FIVE YEARS AGO OVERNIGHT MAKING THE STATEOWNED FRENCH CONCERN THE LARGEST TELEVISIONSET PRODUCER IN THE US THE FRENCH CALLED THEIR ACQUISITION OF THE COMPANY THAT DEVELOPED COLOR TELEVISION IN THE US THE START OF A DARING CHALLENGE TO THE JAPANESE AN EFFORT TO SUCCEED WHERE RCA'S AMERICAN OWNERS HAD FAILED IN FACT THE FRENCH PROMPTLY DESCENDED INTO DEBT MANAGEMENT TROUBLE AND RED INK RCA'S MARRIAGE WITH FRANCE HAS PROVED A ROCKY ONE RICH IN IRONY IN DRAMA AND IN LESSONS ABOUT AMERICA'S INDUSTRIAL FUTURE THE EXPERIENCE SHOWS HOW HARD IT IS TO MANAGE A BIG INDUSTRIAL ACQUISITION ACROSS NATIONAL AND CULTURAL BORDERS CURIOUSLY ENOUGH IT ALSO SHOWS HOW TENACIOUS A CORPORATE CULTURE SUCH AS RCA'S CAN BE LIKE THE TEENAGER WITH THE TBIRD THE FRENCH PUT A FORTUNE INTO RCA WHOSE MAIN PRODUCTS REMAIN TELEVISION SETS VIDEOCASSETTE RECORDERS CAMCORDERS AND AUDIO EQUIPMENT THE ACQUISITION INCLUDING THE RCA AND GE CONSUMER ELECTRONICS BRANDS COST MORE THAN 1 BILLION IN CASH AND ASSETS THEN CAME CAPITAL INVESTMENT WHICH HAS ALREADY EXCEEDED 400 MILLION PLUS MILLIONS MORE FOR INTEREST RESEARCH AND REPEATED RESTRUCTURING BAFFLED BY THE ROUGH AND TUMBLE US CONSUMER ELECTRONICS MARKET THE FRENCH LEFT MOST MANAGEMENT TO A SERIES OF AMERICAN EXECUTIVES WHO CAME AND WENT A BIT FASTER THAN INTENDED RCA SAYS SALES AND RESULTS FINALLY STARTED IMPROVING LAST YEAR THE FRENCH CLAIM AS THEY SOMETIMES HAVE BEFORE THAT THEY ARE TURNING THE CORNER BUT UP TO NOW BURDENED BY HEAVY DEBT FROM THE ACQUISITION AND FROM LOSSES SINCE THEN RCA HAS SERVED MAINLY AS A CASH DRAIN ON ITS FRENCH SUGAR DADDY WE CAN FINALLY SAY THAT THE BUSINESS IS HEALTHY INSISTS RCA'S TOP US OFFICIAL JOSEPH CLAYTON A MARKETING WHIZ OR ON THE ROAD TO RECOVERY HE AMENDS THOMSON IS ONE OF MANY FOREIGN COMPANIES THAT MADE BIG US ACQUISITIONS IN THE 1980S EXECUTIVES FROM OTHER COMPANIES SAY PAINFUL EXPERIENCES SUCH AS THOMSON'S HAVE BEEN SURPRISINGLY COMMON IN SOME CASES LIKE THIS ONE THE TARGET COMPANY SEEMS TO FARE BETTER THAN THE BUYER RCA WAS ON THE SKIDS BEFORE THE FRENCH ARRIVED IT WAS ACQUIRED IN 1986 BY ARCHRIVAL GENERAL ELECTRIC CO WHICH MERGED ITS OWN SMALLER CONSUMERELECTRONICS ACTIVITIES WITH RCA'S BUT JOHN WELCH GE'S CHAIRMAN SOURED ON THE LOWMARGIN BUSINESS KEEPING ASSETS SUCH AS THE NBC TELEVISION NETWORK HE SOLD THE CONSUMERELECTRONICS OPERATIONS TO THOMSON NEGOTIATING THE SALE WHILE ATTENDING THE 1987 FRENCH OPEN TENNIS CHAMPIONSHIP IT WAS A SHOCK FOR ALL CONCERNED STAGGERING UNDER THE CASH DRAIN OF BRINGING OUT PRODUCTS TO FIGHT THE HARDCHARGING JAPANESE ALAIN GOMEZ CHAIRMAN OF THOMSON SA THE PARENT COMPANY AT ONE POINT TRIED AND FAILED TO UNLOAD THE BUSINESS TO ANOTHER FRENCH GOVERNMENT AGENCY IT HAS BEEN SAID THAT ANYONE ENTERING OR EXPANDING IN THE CONSUMER ELECTRONICS BUSINESS IS NUTS SAYS DAVID LACHENBRUCH EDITORIAL DIRECTOR OF THE TRADE NEWSLETTER TELEVISION DIGEST RIGHT NOW HE SAYS IT IS QUITE POSSIBLE THAT ALMOST NOBODY IS TURNING A PROFIT MAKING TELEVISION SETS ONE WAY TO UNDERSTAND THE PROBLEM IS TO VISIT RCA'S SPRAWLING TELEVISIONSET ASSEMBLY PLANT IN BLOOMINGTON IND IT IS THE WORLD'S LARGEST TELEVISIONSET FACTORY WHERE THE WORLD'S FIRST COMMERCIAL COLOR SET WAS ASSEMBLED IN 1954 RCA SAYS PROUDLY IT ALSO IS THE WORLD'S OLDEST TELEVISION PLANT WITH SOME OF THE INDUSTRY'S COSTLIEST LABOR THE AVERAGE EMPLOYEE AT THE FULLY UNIONIZED PLANT IS 47 YEARS OLD PLANT MANAGER DJ WALSH SAYS LABOR COSTS ROUGHLY TWICE WHAT JAPANESE COMPETITORS PAY AT NEWER FACTORIES THEY HAVE SET UP IN OTHER STATES WITH YOUNG NONUNION EMPLOYEES TO CUT LABOR COSTS THE FRENCH SPENT 32 MILLION ON AUTOMATION IN BLOOMINGTON ALONE BUT BECAUSE ASSEMBLY LINES MUST BE MODIFIED REGULARLY AS PRODUCTS CHANGE THAT CREATED ITS OWN PROBLEMS THE LINES WITHOUT AUTOMATION ARE EASY TO CONVERT SAYS MR WALSH ADDING BUT WITH AUTOMATION IT GETS VERY EXPENSIVE WE NEVER WOULD GO BACK TO THIS LEVEL OF AUTOMATION AGAIN FINDING MANAGERS CAPABLE OF RUNNING THE DIVERSE INTERNATIONAL BUSINESS HAS BEEN JUST AS TOUGH THOMSON'S PARIS HEADQUARTERS CURRENTLY IS ON ITS THIRD WORLDWIDE CONSUMER ELECTRONICS CHIEF SINCE 1988 THE FOURTH IF YOU COUNT RICHARD MILLER AN AMERICAN WHO WAS CHOSEN FOR THE JOB IN 1988 BUT QUIT FIRST WHEN ALAIN PRESTAT A FORMER AIDE TO THE THENPRIME MINISTER GOT THE JOB LAST YEAR NINE OF THE 12 PEOPLE WHO REPORTED TO HIM QUIT OR WERE FIRED ONE UNEXPECTED RESULT OF THE TURMOIL HAS BEEN THE REEMERGENCE OF THE RCA BUSINESS CULTURE GE PEOPLE HAD GRABBED MOST OF THE TOP JOBS AFTER THE GE TAKEOVER BUT RCA'S VETERAN MARKETERS PROVED BETTER AT WEATHERING STORMS APART FROM FINANCE RUN BY A FRENCHMAN RCA PEOPLE SUCH AS MR CLAYTON TODAY HAVE RECAPTURED ALMOST ALL THE TOP US JOBS RCA SAYS US OPERATING RESULTS INCHED INTO THE BLACK LAST YEAR NOT COUNTING MILLIONS SPENT ON THINGS SUCH AS BASIC RESEARCH AND INTEREST THOMSON SAYS RCA'S US PROGRESS HAS HELPED CUT ITS OWN OVERALL CONSUMERELECTRONICS LOSSES MR CLAYTON IS SHIFTING SALES TOWARD HIGHERMARGIN TELEVISION SETS WITH SCREENS LARGER THAN 30 INCHES A BUSINESS ONCE DOMINATED BY THE JAPANESE RCA HAS HIRED A YOUNG DESIGN TEAM WHICH IS WINNING AWARDS FOR ITS CREATIVE WORK DESIGNER ROB HUBER IS TRYING TO INVENT A FLEXIBLE AUDIO BOOM BOX HE CALLS A HIP BOX WHICH MUSIC LOVERS CAN BUCKLE AROUND THEIR WAIST THIS YEAR RCA FORMED AN ALLIANCE WITH OTHER US AND EUROPEAN COMPANIES TO DEVELOP THE TECHNOLOGY OF THE FUTURE HIGHDEFINITION TELEVISION AN AREA WHERE JAPAN HAS STUMBLED IT ALSO FORMED AN ALLIANCE WITH GENERAL MOTORS CORP'S HUGHES AIRCRAFT CO UNIT TO BROADCAST PROGRAMS BY SATELLITE WHICH MR CLAYTON HOPES EVENTUALLY WILL GENERATE 1 BILLION IN ANNUAL SALES BUT THE FUTURE PICTURE IS FAR FROM CLEAR SUPPORTERS OF HIGHDEFINITION TELEVISION ACKNOWLEDGE THAT THERE ISN'T ANY GUARANTEE THE TECHNOLOGY THOMSON'S GREAT HOPE WILL PREVAIL IN THE MARKETPLACE HDTV DEVELOPMENT IS ONE OF THOMSON'S BIGGEST BURDENS IN PART BECAUSE IT HASN'T MANAGED TO LINK ITS SEPARATE COSTLY US AND EUROPEAN PROGRAMS INCLUDING INTEREST RESTRUCTURING AND RESEARCH THOMSON'S WORLDWIDE CONSUMER ELECTRONICS GROUP POSTED A NET LOSS OF 177 BILLION FRENCH FRANCS 2971 MILLION LAST YEAR AFTER A 248 BILLIONFRANC LOSS IN 1991 AND A 275 BILLIONFRANC LOSS IN 1990 THE FRENCH GOVERNMENT HAS PUMPED IN THREE BILLION FRANCS OF NEW CAPITAL SINCE 1988 THE FRENCH SOMETIMES MAKE SURPRISING FINANCIAL CHOICES CURRENTLY THOMSON IS SPENDING 50 MILLION ON A FANCY NEW INDIANAPOLIS HEADQUARTERS FOR ITS US OPERATIONS BUT OVERALL LOSSES HOLD BACK SPENDING ON ESSENTIALS SUCH AS PRODUCT DEVELOPMENT THERE'S NO QUESTION THAT WE HAVE TO BE MORE FOCUSED THAN THE JAPANESE SAYS RCA'S MR CLAYTON WHILE THE JAPANESE PURSUE MINICOMPACT DISKS AND OTHER SPINOFF PRODUCTS WE HAVE TO FOCUS ON TV WE CAN'T WALK AND CHEW GUM AT THE SAME TIME 9308190066 930819 ROLE OF PRIVATE INSURERS IN MEDICARE IS QUESTIONED WASHINGTON A REPORT ON PRIVATE INSURANCE CARRIERS IN THE MEDICARE PROGRAM THAT PAYS DOCTOR BILLS SHOWS THAT MOST OF THE CLAIMS DENIED ON MEDICAL GROUNDS AREN'T REVIEWED BY QUALIFIED HEALTHCARE PROFESSIONALS THE STUDY BY THE GENERAL ACCOUNTING OFFICE CONGRESS'S INVESTIGATIVE ARM SAYS THAT TIME CONSTRAINTS FOR MAKING DECISIONS WEAKNESSES IN SOME QUALITY CONTROL METHODS AND OTHER FACTORS RAISE QUESTIONS ABOUT THE SYSTEM'S POTENTIAL FOR TREATING MEDICARE CLAIMANTS CONSISTENTLY REP RON WYDEN AN OREGON DEMOCRAT WHO ORDERED THE GAO REPORT CHARGED THAT THE BULK OF MEDICARE CLAIMS ARE REVIEWED BY HIGH SCHOOLEDUCATED CLAIMS PROCESSORS WHO ARE FORCED TO PASS JUDGMENT ON AS MANY AS 400 CLAIMS PER WORKING DAY MORE THAN A THIRD OF THE CLAIMS THAT ARE REJECTED ARE DONE SO ON GROUNDS THAT THE SERVICES WEREN'T MEDICALLY NECESSARY REP WYDEN SAID FURTHER SCRUTINY IS NEEDED OF THE ROLE OF PRIVATE INSURERS IN MEDICARE THE FEDERAL HEALTH PROGRAM FOR THE ELDERLY AND DISABLED 9308190065 930819 MARKETING & MEDIA CAPITAL CITIES/ABC SIGNS AGREEMENT WITH TIME TO CARRY NEW SPORTS CHANNEL BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CAPITAL CITIES/ABC INC SIGNED A PACT WITH TIME WARNER INC CABLE SYSTEMS FOR CARRYING ITS NEW ESPN2 SPORTS CHANNEL ACCELERATING THE ALREADY FAST START FOR THE NEW SERVICE ESPN2 OWNED BY CAPITAL CITIES/ABC AND PARTNER HEARST CORP HAS NOW LINED UP EVENTUAL CARRIAGE BY CABLE GIANT TIME WARNER AND 15 OTHER CABLE OPERATORS REACHING A COMBINED TOTAL OF MORE THAN 20 MILLION HOMES BEFORE THE NEW SERVICE HAS SO MUCH AS AIRED ITS FIRST BEACHVOLLEYBALL GAME STEVEN BORNSTEIN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ESPN AND ITS SPINOFF SAID THE CABLE DEALS WILL MAKE ESPN2 A LOT MORE MEANINGFUL TO MADISON AVENUE A WHOLE LOT SOONER WITHIN TWO YEARS RATHER THAN THE FIVEYEAR ROLLOUT IT WOULD NORMALLY HAVE FACED THE LATEST PACT IS PART OF RETRANSMISSION CONSENT NEGOTIATIONS REQUIRED UNDER THE 1992 CABLE ACT LETTING LOCAL TELEVISION STATIONS FOR THE FIRST TIME CHARGE CABLE SYSTEMS FOR CARRYING STATION PROGRAMMING RATHER THAN TRY TO IMPOSE CASH FEES WHICH CABLE SYSTEMS HAVE ARDENTLY OPPOSED ABC AND HEARST WHICH BOTH OWN TV STATIONS INSTEAD GOT TIME WARNER AND OTHER CABLE COMPANIES TO AGREE TO PAY THEM FOR CARRYING ESPN2 THE AGREEMENTS ARE A BONANZA FOR ESPN2 AND OTHER NEW CABLE SERVICES ROLLING OUT AS PART OF THE DICKERING BETWEEN CABLE AND BROADCASTERS THE PACTS UNDERSCORE A CENTRAL IRONY EMERGING FROM THE NEW CABLE LAW ALTHOUGH THE RETRANSMISSION MEASURE WAS DESIGNED TO BENEFIT BROADCAST STATIONS INSTEAD THE BROADCASTERS ARE USING IT TO GAIN ENTRY INTO THE CABLE BUSINESS BROADCAST EXECUTIVES HOWEVER SAY THAT TREND IS BECAUSE THEY HAVE NO CASE MICHAEL MALLARDI PRESIDENT OF CAPITAL CITIES/ABC'S TV STATION GROUP SAID HE IS SEEKING CASH FEES FROM CABLE OPERATORS BUT THUS FAR HAS SETTLED FOR CABLE OPERATORS' COMMITMENT TO CARRY ESPN2 ON THEIR SYSTEMS CABLE OPERATORS HAVE ALL BUT IGNORED NEW CHANNEL LAUNCHES LATELY LARGELY BECAUSE OF LIMITED CHANNEL CAPACITY AND UNCERTAINTY OVER NEW RATE REGULATIONS BUT EARLIER THIS WEEK TIME WARNER SIGNED A SIMILAR DEAL WITH GENERAL ELECTRIC CO'S NBC UNIT AGREEING TO CARRY A NEW CHANNEL CALLED AMERICA'S TALKING AND NEWS CORP'S FOX INC HAS WON CARRIAGE FOR ITS NEW FOX BASIC CABLE CHANNEL ON CABLE SYSTEMS OWNED BY TELECOMMUNICATIONS INC WITH ESPN2 ABC AND HEARST HOPE TO LURE VIEWERS YOUNGER THAN THOSE WATCHING ESPN SPECIFICALLY ADULTS 18 TO 34 YEARS OLD WITH ENTERTAINMENTORIENTED SPORTS SHOWS LIKE MAX OUT A SERIES FEATURING EXTREME SPORTS SUCH AS SKYSURFING SET TO ROCK MUSIC NBC HAS ITS SIGHTS SET ON TALKSHOW FANS WITH AMERICA'S TALKING WHICH WILL COMBINE THE TALK SHOW FORMAT WITH PREVAILING NEWS TOPICS OF THE DAY 9308190064 930819 LEISURE & ARTS FILM WOODY ALLEN LITE A CHILD REDEEMED BY JULIE SALAMON WOODY ALLEN WAS FILMING MANHATTAN MURDER MYSTERY DURING HIS WELLPUBLICIZED CHILDCUSTODY/CHILDROMANCE FIGHT WITH MIA FARROW FITTINGLY THE CHARACTER HE PLAYS IN THE MOVIE SEEMS LIKE THE CREATION OF A MAN GETTING READY TO APPEAR BEFORE THE PAROLE BOARD OF PUBLIC OPINION BY CASTING HIMSELF AS THE MOVIE'S ONLY REALLY RATIONAL CHARACTER MR ALLEN SEEMS TO BE SAYING LOOK WHAT A GOOD GUY I CAN BE AT LEAST IN MY MOVIES MR ALLEN AS LARRY THE BOOK EDITOR IS LEVELHEADED WHEN EVERYONE ELSE IS HYSTERICAL NOT ONLY THAT THIS MOVIE CHARACTER IS A DOTING FATHER AND AN ADORING FAITHFUL HUSBAND TO HIS WIFE WHO IS ALSO THE MOTHER OF HIS CHILD AND PERHAPS MOST IMPORTANT TO WOODY ALLEN FANS LARRY IS A VERY AMUSING QUIPSTER IN GENERAL MANHATTAN MURDER MYSTERY MR ALLEN'S 23RD FEATURE FILM HAS THE FEELING OF A GOODWILL GESTURE THIS FROTHY JOKEY PICTURE AIMS TO PLEASE AND IT DOES MOSTLY IT ESPECIALLY AIMS AT THOSE PEOPLE WHO COMPLAIN THEY LIKED WOODY BETTER WHEN HE WAS FUNNY UNLIKE LAST YEAR'S BITTERLY COMIC HUSBANDS AND WIVES WHICH SEEMED LIKE A PUBLIC AIRING OF THE FARROWALLEN DIRTY LAUNDRY MANHATTAN MURDER MYSTERY IS DELIBERATELY BREEZY STILL IT'S HARD NOT TO DISSECT SOME LINES FOR THEIR POTENTIAL LINK TO REAL LIFE WHEN LARRY/WOODY DESCRIBES HIMSELF AS A WORLDFAMOUS CLAUSTROPHOBIC ONE WONDERS IF THIS IS A REFERENCE TO MR ALLEN'S DEFENSE AGAINST THE ACCUSATION THAT HE MOLESTED HIS ADOPTED DAUGHTER IN AN ATTIC IT COULDN'T HAVE HAPPENED HE SAID BECAUSE I'M CLAUSTROPHOBIC AS HE DID IN HUSBANDS AND WIVES MR ALLEN HAD CINEMATOGRAPHER CARLO DI PALMA SHOOT THIS MOVIE IN THE YOUARETHERE STYLE OF A DOCUMENTARY THOUGH THE JERKY CAMERA ACTION SOMETIMES MAKES YOU DIZZY IT SEEMS APPROPRIATE TO THIS LOOSELIMBED LITTLE PICTURE'S LACK OF PRETENSION IT'S NOT MUCH MORE THAN A LONG SKIT PATCHED TOGETHER WITH JOKES BUT MR ALLEN AND HIS PERENNIAL COWRITER MARSHALL BRICKMAN HAVE MADE SURE THE PATCHWORK ISN'T SKIMPY THE JOKES ARE PLENTIFUL AND VERY FUNNY DIANE KEATON WAS BROUGHT IN TO FILL THE ROLE ORIGINALLY PLANNED FOR MS FARROW SHE'S CAROL LARRY'S WIFE MIDDLEAGED AND BORED NOW THAT THE CHILD SHE QUIT WORK TO RAISE HAS LEFT FOR COLLEGE IT'S FUN TO WATCH MS KEATON AND MR ALLEN TOGETHER AGAIN PLAYING A COMFORTABLE COUPLE IN A LONGSTANDING MARRIAGE IN WHICH FRIENDLINESS HAS REPLACED PASSION CAROL WEARS A BRA TO BED UNDER A NIGHTSHIRT BUTTONED UP TO THE NECK CAROL FINDS DISTRACTION FROM HER MIDLIFE MALAISE IN THE SUDDEN DEATH OF A NEXTDOOR NEIGHBOR AN ELDERLY BUT HEALTHY WOMAN CONVINCED THAT THE WOMAN'S HUSBAND MURDERED HER CAROL BECOMES OBSESSED WITH SOLVING THE MYSTERY LARRY'S NOT KEEN ON HIS WIFE'S NEW HOBBY BUT THEIR DIVORCED FRIEND TED ALAN ALDA SUPPORTS IT MAINLY BECAUSE HE HAS A CRUSH ON CAROL HE STARTS SLEUTHING WITH HER SO THEY CAN SPEND TIME TOGETHER LARRY GRUDGINGLY JOINS THE INVESTIGATION AGAINST HIS WILL IN ORDER TO PLEASE CAROL HE LOVES HER SO MUCH HE BARELY NOTICES THE FLIRTATIOUS ATTENTION HE'S GETTING FROM THE SEXY AUTHOR ANJELICA HUSTON WHOSE BOOK HE'S EDITING NOT SURPRISINGLY THIS BEING A WOODY ALLEN MOVIE THESE AMATEUR GUMSHOES DO MOST OF THEIR DETECTIVE WORK WITH THEIR MOUTHS TALKING IT UP IN FANCY RESTAURANTS BUT ALSO AT FAMILIAR NEW YORK PLACES SUCH AS LINCOLN CENTER AND GRAMERCY PARK THE USUAL ALLEN OBSESSIONS CROP UP MOVIES LOVE FIDELITY BUT MORE CASUALLY THAN USUAL MANHATTAN MURDER MYSTERY IS WOODY ALLEN LITE A NICE LITTLE ENTERTAINMENT NOT CLAUSTROPHOBIC THE SECRET GARDEN FRANCES HODGSON BURNETT'S CLASSIC CHILDREN'S STORY IS A MORBIDLY APPEALING TALE OF LOSS AND REDEMPTION FOR THOSE WHO HAVEN'T READ THE BOOK IT IS ABOUT MARY LENNOX A LITTLE BRITISH GIRL RAISED IN INDIA UNTIL THE AGE OF 10 WHEN HER PARENTS DIE IN A FIRE SHE REMEMBERS THEM COOLLY AS GLAMOROUS PEOPLE TOO BUSY FOR HER AFTER THEIR DEATHS SHE'S SHIPPED TO ENGLAND TO LIVE WITH THE WIDOWER OF HER DEAD MOTHER'S TWIN SISTER WHO DIED IN CHILDBIRTH MARY UNDERSTANDABLY IS A SOUR CHILD HER NEW HOME IN THE ENGLISH MOORS IS HAUNTED BY HER DEAD AUNT'S MEMORY HER UNCLE A HUNCHBACK SPENDS MOST OF HIS TIME AWAY FROM THIS PLACE WITH ITS SAD MEMORIES HER COUSIN A LIFELONG INVALID WHOM SHE DISCOVERS ONLY AFTER TRACING THE SCREAMS SHE HEARS AT NIGHT HAS BEEN KEPT LOCKED UP SINCE BIRTH JUST WHEN THE STORY'S GLOOMINESS BECOMES ALMOST UNBEARABLE MARY FINDS A BRIGHT SPOT HER AUNT'S SECRET GARDEN TOGETHER WITH A SWEET LOCAL BOY MARY REVITALIZES THE GARDEN CURES HER COUSIN AND BRINGS HER UNCLE BACK TO LIFE FOR THE MOVIE VERSION AGNIESZKA HOLLAND THE ACCOMPLISHED POLISH SCREENWRITER AND DIRECTOR EUROPA EUROPA HAS REMAINED FAITHFUL TO THE BOOK'S GOTHIC STRUCTURE AND STYLE THE ACTORS ARE FINE ESPECIALLY YOUNG KATE MABERLY AS MARY AND MAGGIE SMITH AS MARY'S NEMESIS THE FRANTIC HOUSEKEEPER WHO MAINTAINS THE HOUSEHOLD'S SELFWILLED INSANITY WITH A LUCID SCRIPT BY CAROLINE THOMPSON STUART CRAIG'S VIVID PRODUCTION DESIGN AND ROGER DEAKINS'S LOVELY CAMERAWORK MS HOLLAND HAS MADE AN ELEGANT AND TOUCHING FILM FOR CHILDREN AND THEIR PARENTS VIDEO TIP MS KEATON IS OFTEN THOUGHT OF AS THE INARTICULATE CUTIE WHO GETS BY ON A SMILE AND A ROLL OF THE EYES WHEN WORDS FAIL HER BUT SHE'S GIVEN SOME THOUGHTFUL SERIOUS PERFORMANCES OVER THE YEARS MOST OVERLOOKED PERHAPS IS THE MRS SOFFEL 1984 THE GILLIAN ARMSTRONG FILM BASED ON THE TRUE STORY OF A TURNOFTHECENTURY WARDEN'S WIFE WHO HELPED TWO PRISONERS ESCAPE FROM DEATH ROW BOTH MS KEATON AS THE UNSTABLE MRS SOFFEL AND MEL GIBSON AS ONE OF THE BROTHERS ARE VERY VERY GOOD 9308190062 930819 LEISURE & ARTS BOOKSHELF THE SOURPUSS POET BY RICHARD LOCKE THOUGH HE TURNED DOWN THE JOB WHEN IT WAS OFFERED TO HIM IN 1984 A YEAR BEFORE HE DIED AT 63 PHILIP LARKIN WAS THE UNOFFICIAL POET LAUREATE OF ENGLAND IN ITS DECLINE THE BEST ENGLISH POET SINCE AUDEN A NATIONAL MONUMENT PART COMFORTER PART CASSANDRA AS ANDREW MOTION PUTS IT IN HIS EXCELLENT NEW BIOGRAPHY OF THIS BELOVED SOURPUSS PHILIP LARKIN A WRITER'S LIFE FARRAR STRAUS & GIROUX 570 PAGES 35 HIMSELF A PROLIFIC AUTHOR OF POETRY FICTION CRITICISM AND BIOGRAPHY AND A FRIEND COLLEAGUE AND LITERARY EXECUTOR OF LARKIN'S MR MOTION HAS GIVEN US A WORK OF INTENSE LITERARY SOCIAL AND PSYCHOLOGICAL INTEREST MR MOTION IS A CLEAR FLUENT WRITER EVOCATIVE ACUTE SYMPATHETIC BUT ABSOLUTELY UNBLINKING ABOUT THE NOTORIOUS WEAKNESSES AND CRUELTIES AS WELL AS THE IMMENSE WIT AND HARD WORK OF HIS SUBJECT LARKIN WAS NOT MERELY THE WC FIELDS OR GLOOMY DONKEY EEYORE REVIEWERS DESCRIBED HE DISLIKED WOMEN CHILDREN BLACKS TRADE UNIONS FOREIGNERS SOCIALISTS MODERNISTS STUDENTS AND ACADEMICS MR MOTION IS FRANK LARKIN HAD NO DEVELOPED POLITICAL OPINIONS BUT STRONG REACTIONARY PREJUDICES WELL ILLUSTRATED BY HIS DITTY PRISON FOR STRIKERS/BRING BACK THE CAT/KICK OUT THE NIGGERS/WHAT ABOUT THAT MOREOVER LARKIN'S LEGENDARY PERSONA AS A HERMIT LIVING A GLUM PROVINCIAL EXISTENCE AS THE IN FACT FABULOUSLY ADROIT AND SUCCESSFUL LIBRARIAN AT THE UNIVERSITY OF HULL ON THE NORTHEAST COAST WAS VERY MUCH A MATTER OF SELFISH CHOICE AND LITERARY PUBLIC RELATIONS HIS FRIENDS INCLUDED KINGSLEY AMIS JOHN WAIN BARBARA PYM JOHN BETJEMAN AND ROBERT CONQUEST HE WEASELED AND JUGGLED WOMEN FOR MUCH OF HIS LIFE WHILE KEEPING A BOXFUL OF PORNOGRAPHY AT HAND SEX IS TOO GOOD TO SHARE WITH ANYONE ELSE HE NOTED BUT HIS OFTENMOVING POEMS DID CHANGE THE SELFUNERSTANDING AND IMAGINATIVE LIFE OF HIS COUNTRY HE WAS READ BY LARGE NUMBERS OF PEOPLE FROM ALL WALKS OF LIFE AND MR MOTION ARGUES OR RATHER ASSERTS HE IS ONE OF THE GREAT POETS OF THE CENTURY IN ENGLAND I'D HAVE TO EMPHASIZE LARKIN'S REPUTATION AROSE FROM THREE SMALL COLLECTIONS SPACED FAR APART THE LESS DECEIVED IN 1955 THE WHITSUN WEDDINGS IN 1964 AND HIGH WINDOWS IN 1974 SOME 80 POEMS THOUGH A POSTHUMOUS COLLECTION FOUND AN ADDITIONAL 160 WORTH REPRINTING HIS TWO EARLY NOVELS JILL 1946 AND A GIRL IN WINTER 1947 AND HIS TWO COLLECTIONS OF ARTICLES AND REVIEWS ALL WHAT JAZZ 1970 AND REQUIRED WRITING 1983 NEVER APPROACHED THE PROFOUND CENTRALITY THE COMIC RAGE PLANGENT SORROW AND TOUGH LYRICISM OF HIS POEMS ON SEX LOVE DEATH TRADITION THE LANDSCAPE AND FAMILY LIFE IN MIDDLE ENGLAND HIS OWN CHILDHOOD IN COVENTRY WAS DOMINATED HE SAID BY FEAR AND BOREDOM FOR MR MOTION LARKIN WAS BOTH DEPENDENT UPON AND DRAGGED DOWN BY HIS WHINING MOTHER AND AUTOCRATIC FATHER THE CITY TREASURER WHO PRIZED BOOKS AND BRAINS ABOVE ALL HAD NOTHING BUT CONTEMPT FOR WOMEN AND SO ADMIRED HITLER THAT HE ATTENDED SEVERAL NUREMBERG RALLIES AND KEPT A STATUE OF HIS HERO ON THE MANTELPIECE LARKIN DESCRIBED HIS MOTHER AS A SNIVELLING PEST HIS PARENTS' MARRIAGE HE WROTE LEFT ME WITH TWO CONVICTIONS THAT HUMAN BEINGS SHOULD NOT LIVE TOGETHER AND THAT CHILDREN SHOULD BE TAKEN FROM THEIR PARENTS AT AN EARLY AGE LARKIN STAMMERED FROM THE AGE OF FOUR WORE THICK SPECTACLES WAS UNGAINLY WITH A LONG BACK AND COMPARATIVELY SHORT LEGS AND GREW INTO A TALL AWKWARD PUBLICLY SHY AND PRIVATELY FUNNY SCABROUS HARDDRINKING OXFORD UNIVERSITY MAN WHO DESPISED THE SET ENGLISHLIT CURRICULUM BUT GOT A FIRST IN 1943 HE'D BEEN EXCUSED FROM THE DRAFT FOR HIS EYESIGHT UNABLE TO SECURE A POSITION IN THE CIVIL SERVICE OR FOREIGN OFFICE HE TOOK A JOB AS A SMALLTOWN PUBLIC LIBRARIAN AND WROTE PILES OF POEMS STORIES ROMANCES AND HIS TWO NOVELS HE SOON MET HIS FIRST LOVE A 16YEAROLD SCHOOLGIRL BUT HE WAS ALWAYS TO FEAR THAT INTIMACY THIS LETTING IN OF ANOTHER PERSON SPELLS DEATH TO PERCEPTION AND CREATIVITY HIS SOLITUDE WAS A SNUG DRESSING GOWN HE NEEDED TO WRITE IN OR AS HE SAID DEPRIVATION IS FOR ME WHAT DAFFODILS WERE FOR WORDSWORTH HIS DUPLICITY TOWARD THE FEW WOMEN HE TOOK TO BED WAS UNSWERVING HE TENDED TO PLAY OFF A ROMANTIC INNOCENT AGAINST A REALISTIC FUNNY WORLDLY SEXPOT THE WOMAN WHO USUALLY FILLED THE LATTER ROLE WAS IN FACT ALSO INTELLECTUALLY AND MORALLY IMPRESSIVE AN ACADEMIC WHO WAS FAITHFUL TO HIM FOR 35 YEARS WHILE HE DIDDLED AND SCRIBBLED BUT AS MR MOTION PUTS IT IT WAS LARKIN'S MOTHER WHO WAS HIS MUSE NOT A BEAUTY TO BE WON BUT A MISERY WHICH HAD TO BE BOTH RESISTED AND ACCEPTED MOANING AND WRINGING HER HANDS SHE PRECEDED HER SON THROUGH HIS LIFE LOADING HIM DOWN WITH EXAMPLES OF THE CONSTRAINTS HE DREADED BUT ALSO EMBRACED IT MADE HIM LOOK UPON THE ORDINARY AS SOMETHING POTENTIALLY EXTRAORDINARY HER CONVICTION THAT THE LARKINS WERE SUPERIOR' AND HER INSISTENCE THAT THEIR VISION OF THE WORLD WAS ADEQUATE LED HIM TO HIS VERSION OF THE EGOTISTICAL SUBLIME HE WAS 55 WHEN HIS MOTHER DIED AT 91 AND HE VIRTUALLY STOPPED WRITING POEMS FOR THE REMAINDER OF HIS LIFE EIGHT YEARS AGAIN LIKE WORDSWORTH FAMOUSLY CONSERVATIVE HE ENDED IN DROUGHT BUT BY THEIR FRUITS YE SHALL KNOW THEM THE POETRY FAR TRANSCENDS THE POET AND MR MOTION HAS GENEROUSLY ENLARGED OUR UNDERSTANDING OF BOTH IN THIS IMPRESSIVE WRITER'S LIFE 9308190061 930819 LETTERS TO THE EDITOR WHAT DR ELDERS DID FOR ARKANSAS REGARDING BLANT HURT'S JULY 22 EDITORIAL PAGE PIECE DR ELDERS'S RECORD IN ARKANSAS I WISH TO CLARIFY THE SUCCESSES OF DR JOYCELYN ELDERS WITH REGARD TO COMPREHENSIVE STUDENT HEALTH CENTERS WHEN OUTRAGE IS EXPRESSED AT HER PLAN TO OFFER CONTRACEPTIVES TO TEENS I WOULD REMIND HER CRITICS THAT SHE SUPPORTS THE RIGHT OF THE LOCAL SCHOOL BOARD TO APPROVE OF STUDENT HEALTH SERVICE CENTERS AND REQUIRES WRITTEN PARENTAL PERMISSION FOR THE DISTRIBUTION OF CONTRACEPTIVES THERE ARE 24 COMPREHENSIVE STUDENT HEALTH CENTERS IN ARKANSAS WITHIN 11 COUNTIES AND 21 OTHER SCHOOLS AWAIT FUNDING TO INSTALL CENTERS ALREADY APPROVED BY THEIR LOCAL SCHOOL BOARD SCIENTIFIC DATA SHOW THAT COMPREHENSIVE STUDENT HEALTH CENTERS WHICH OFFER COUNSELING AND SUPPORT SERVICES WITH THE DISTRIBUTION OF ANY CONTRACEPTIVES ARE HELPING TO CONTROL TEENAGE PREGNANCY IN ARKANSAS THE HEALTH CENTERS ALSO ADDRESS GOOD NUTRITION SELFESTEEM AND THE PREVENTION OF ALCOHOL AND TOBACCO ABUSE MOTOR VEHICLE ACCIDENTS DATE RAPE AND ASSAULT FROM 1990 TO 1991 THE MOST RECENT YEARS FOR WHICH STATISTICS ARE AVAILABLE LIVE BIRTHS TO 15TO19YEAROLDS IN ARKANSAS DECREASED FROM 6999 TO 6873 WITH A CORRESPONDENT DECREASE IN THE FERTILITY RATE ALTHOUGH IT IS TRUE THAT TEENAGE BIRTHS IN ARKANSAS INCREASED FROM 1987 TO 1990 THE RATE WAS LESS THAN THAT FOR THE ENTIRE NATION 1698 STATEWIDE 12 IN THOSE 11 COUNTIES THAT CONTAIN CENTERS AND 1838 IN THE US AT THE SAME TIME THE NUMBER OF ABORTIONS TO 15TO19YEAROLDS IN ARKANSAS DROPPED 2028 IN 1987 TO 1736 IN 1991 AS DID THE RATIO OF ABORTIONS TO LIVE BIRTHS WHICH IS WELL BELOW THE NATIONAL AVERAGE FOR EXAMPLE AFTER THE IMPLEMENTATION OF CENTERS WITH CONTRACEPTIVE SERVICES IN ONE SCHOOL THE NUMBER OF PREGNANCIES PLUMMETED FROM 10 IN THE 198586 SCHOOL YEAR COMPRISING 30 OF THE CLASS TO TWO THE FOLLOWING YEAR AND NONE IN 198990 THAT IS A CLEAR RECORD OF SUCCESS DR ELDERS HAS ADDRESSED A DIVERSE ARRAY OF PUBLIC HEALTH ISSUES SHE IMPROVED HEALTH CARE FOR THE ELDERLY IN CREATING AN ARKANSAS DEPARTMENT OF HEALTH HOME TEAM WHICH OFFERS SERVICES 24 HOURS A DAY 365 DAYS A YEAR THIS TEAM OF NURSES THERAPISTS AND AIDES MAKE IT POSSIBLE FOR THOUSANDS OF PEOPLE EACH YEAR TO RECEIVE TREATMENT AT HOME WITH THEIR FAMILIES AND AVOID HOSPITALIZATION IN 1992 MORE THAN 17000 PATIENTS WHO WERE RECOVERING OR WHO WERE CHRONICALLY ILL FRAIL OR TERMINALLY ILL RECEIVED HEALTH CARE THROUGH HOME TEAM THE COST PER RECOVERING PATIENT WAS 28 LESS THAN THE NATIONAL AVERAGE COST ACCORDING TO MEDICARE DATA DR ELDERS HAS AN OUTSTANDING RECORD OF ACCOMPLISHMENTS IN ARKANSAS AN INCREASE IN THE CHILDREN WHO RECEIVED SCREENING AND TREATMENT SERVICES TO 45252 IN 1992 FROM 4186 IN 1988 A 73 INCREASE IN THE NUMBER OF WOMEN AND CHILDREN RECEIVING NUTRITION SERVICES A JUMP IN IMMUNIZATION RATES FOR TWOYEAROLDS TO 60 IN 1992 FROM 34 IN 1989 A RISE IN THE NUMBER OF WOMEN RECEIVING PRENATAL CARE IN THE FIRST TRIMESTER 665 TO 714 FROM 1987 TO 1991 AND INITIATIVES TO RECRUIT 17 PHYSICIANS TO UNDERSERVED RURAL AREAS IN 1992 ALONE THIS IS A CLEAR RECORD OF SUCCESS DR ELDERS IS THE MOST QUALIFIED PHYSICIAN EVER TO BE NOMINATED TO THIS OFFICE SHE HAS LED A HEALTH CARE TEAM IN ARKANSAS TO A MULTITUDE OF SUCCESSES SHE WILL DO THE SAME FOR THE NATION AS US SURGEON GENERAL 9308190060 930819 IPALCO BOOSTS HOSTILE PSI BID TO 173 BILLION PROPOSAL COMES FIVE DAYS BEFORE KEY PROXY VOTE AT THE INDIANA UTILITY BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL IPALCO ENTERPRISES INC BOOSTED ITS HOSTILE BID FOR PSI RESOURCES INC TO 173 BILLION FROM 16 BILLION JUST TWO DAYS AFTER PSI AND CINCINNATI GAS & ELECTRIC CO SWEETENED TERMS OF THEIR MERGER PLAN TO MATCH IPALCO'S EARLIER INCREASE BY BOOSTING ITS CASHANDSTOCK TENDER OFFER TO 3050 A SHARE FROM 28 IPALCO RAISED THE ANTE AGAIN IN WHAT HAS TURNED INTO A BIDDING WAR REMINISCENT OF THE TAKEOVER FIGHTS OF THE 1980S IPALCO'S MOVE COMES FIVE DAYS BEFORE A CRUCIAL VOTE IN WHICH PSI HOLDERS WILL CHOOSE BETWEEN A SLATE OF IPALCO NOMINEES AND THE DIRECTOR NOMINEES THAT PSI MANAGEMENT IS BACKING ALTHOUGH ONLY FIVE OF 14 PSI BOARD SEATS ARE UP FOR ELECTION AT THE PLAINFIELD IND COMPANY'S ANNUAL MEETING MONDAY THE PROXY FIGHT IS SEEN AS A REFERENDUM THAT COULD DETERMINE THE OUTCOME OF THE TAKEOVER BATTLE HOSTILE FIGHTS HAVE BECOME RARITIES IN THE 1990S THE HARDPITCHED STRUGGLE FOR PSI IS ALL THE MORE EXCEPTIONAL BECAUSE THE PARTICIPANTS ARE UTILITIES IN THAT REGULATIONENCRUSTED INDUSTRY EVEN FRIENDLY MERGERS ARE DIFFICULT AND TIMECONSUMING TO EFFECT AND HOSTILE FIGHTS ARE ALMOST UNHEARD OF FOR ARBITRAGERS AND OTHER INVESTORS CALCULATING THE PSI SITUATION HAS BEEN DIFFICULT BECAUSE IPALCO'S BID IS GENERALLY THOUGHT TO FACE SIGNIFICANT DIFFICULTIES PASSING MUSTER WITH REGULATORS CONCEIVABLY IPALCO COULD WIN THE BIDDING BREAKING UP THE MERGER PLAN AND THEN EITHER BE FOILED BY REGULATORS OR BE DRAGGED INTO A LENGTHY FIGHT THAT WOULD MAKE IT DROP ITS PLANS EACH TIME THE COMPANY BOOSTS THE PRICE IT'S WILLING TO PAY FOR PSI THE REGULATORY HURDLES IT FACES PRESUMABLY GROW HIGHER PSI SAID ITS DIRECTORS WILL CONSIDER IPALCO'S LATEST BID IN DUE COURSE BUT IT REITERATED THAT THE HIGHER OFFER LIKE IPALCO'S EARLIER BIDS APPEARS BASED ON A REGULATORY PLAN THAT PSI BELIEVES IS HIGHLY UNLIKELY TO GET CLEARANCE IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY PSI SHARES MOVED UP 375 CENTS ON HEAVY VOLUME TO 2575 IPALCO SLIPPED 25 CENTS TO 36 AND CG&E ROSE 25 CENTS TO 27875 IPALCO BASED IN INDIANAPOLIS THEN LAUNCHED A RIVAL 2650ASHARE OR 15 BILLION BID FOR PSI WITH THE DATE FOR PSI'S ANNUAL MEETING APPROACHING IPALCO EARLIER THIS MONTH BOOSTED ITS UNWANTED BID TO 28 A MOVE THAT SPARKED THIS WEEK'S REJIGGERING OF THE PSI/CG&E MERGER TERMS SO THAT PSI HOLDERS WOULD RECEIVE A ROUGHLY LIKE AMOUNT UNDER THE NEW PLAN IF CG&E SHARES RISE PSI HOLDERS COULD RECEIVE AS MUCH AS 3069 FOR EACH OF THEIR SHARES TELLINGLY HOWEVER THE REVISED MERGER TERMS SWEETEN THE PACKAGE FOR PSI HOLDERS ONLY IF PSI'S NOMINEES WIN ELECTION TO THE BOARD IF IPALCO'S SLATE WINS THE EARLIER LOWER EXCHANGE RATIO WILL REMAIN IN EFFECT I THINK THE CINCINNATI OFFER IS BETTER SAID NATWEST SECURITIES ANALYST EDWARD TIRELLO THE FRIENDLY COMBINATION CAN BE PUT TOGETHER MORE RAPIDLY HE THINKS AND ASSUMING A HOPEDFOR RATE INCREASE ALLOWS CG&E TO INCREASE ITS DIVIDEND IN THE AUTUMN THE RESULTING RISE IN THE PRICE OF THE OHIO COMPANY'S SHARES COULD LET INVESTORS SEE THE IPALCO OFFER MATCHED WITH A LOT LESS WORK IPALCO CALLED ITS LATEST BID THE UNQUESTIONABLY SUPERIOR OFFER AND QUESTIONED WHETHER THE PSI/CG&E MERGER WOULD BE ABLE TO GARNER THE REQUISITE TWOTHIRDS APPROVAL FROM CG&E HOLDERS CG&E REACTED TO THE BID INCREASE BY SAYING THE ADJUSTMENT IT AGREED TO EARLIER THIS WEEK WAS ITS LAST AND BEST OFFER AND THAT IT WON'T MATCH THE IPALCO INCREASE PSI HOLDERS SHOULD VOTE IN FAVOR OF THE PSI NOMINEES CG&E GRUMBLED OR THERE MAY BE NO ONE THERE WHEN THE IPALCO PLAN FAILS 9308190059 930819 BUSINESS BRIEF DUPONT CO COMPANY PLANS TO CONSTRUCT 100 MILLION PLANT IN CHINA DUPONT CO IN A MOVE THAT REFLECTS ITS STRONG COMMITMENT TO CHINA SAID IT HOPES TO BUILD A 100 MILLION CHEMICAL FACTORY IN THAT COUNTRY THE WILMINGTON DEL CONCERN SAID THAT ALONG WITH CHINESE PARTNERS IT INTENDS TO BUILD THE STATEOFTHEART BUTAZDIENEBASED ADIPONITRILE OR ADN PLANT AT AN ASYETUNDECIDED LOCATION IN CHINA CONSTRUCTION DEPENDS ON THE OUTCOME OF A FEASIBILILTY STUDY AND ON CHINESE GOVERNMENT AUTHORITIES THE COMPANY EXPECTS THE FACILITY TO BE OPERATIVE BY THE END OF THE DECADE ADN IS USED AS A BUILDING BLOCK IN MAKING A CRITICAL INGREDIENT THE NYLON FORM KNOWN AS NYLON 66 DUPONT CURRENTLY HAS TWO MANUFACTURING VENTURES IN CHINA IN SHENZEN AND SHANGHAI DUPONT ALONG WITH OTHER GLOBAL CHEMICAL CONCERNS IS MOVING TO INCREASE ITS ASIAN CHEMICAL OPERATIONS AS THAT MARKET EXPANDS 9308190058 930819 LEISURE & ARTS THEATER AMY TAN BESTSELLER PREMIERES ON CHINESE STAGE BY JOHN MCGINNIS SHANGHAI CHINA IN AMY TAN'S BESTSELLING NOVEL THE JOY LUCK CLUB THE CHINESEAMERICAN HEROINE JINGMEI GOES TO CHINA NOW LIFE HAS COPIED FICTION THE JOY LUCK CLUB ITSELF HAS TURNED UP HERE AS A PLAY BASED ON THE BOOK AND LIKE JINGMEI'S VISIT THIS JOURNEY HAS BEEN FULL OF SURPRISES AND A WARM IF STRAINED RECEPTION FOR THE STAGE NEW YORK PLAYWRIGHT SUSAN KIM HAS ARRANGED MS TAN'S VIGNETTES OF AMERICANBORN DAUGHTERS AND THEIR CHINESEBORN MOTHERS INTO A LOOSELY CONNECTED TWOACT DRAMA APPARENTLY THE FIRST PREMIERE OF AN AMERICAN PLAY IN CHINA JOY LUCK WHICH OPENED EARLIER THIS MONTH IS A JOINT VENTURE BETWEEN CONNECTICUT'S LONG WHARF THEATRE AND THE SHANGHAI PEOPLE'S ART THEATRE WITH AN ASSIST FROM THE YALECHINA ASSOCIATION ONSTAGE THE BOOK LOSES A FEW CHARACTERS AND MUCH OF ITS RICH DETAIL THE EPISODIC STORY LINE MAY DISORIENT CHINESE PLAYGOERS USED TO LINEAR OFTEN MELODRAMATIC PLAYS DESIGNED TO HOLD THE ATTENTION OF FREQUENTLY RAUCOUS AUDIENCES YET THE WOMEN'S EXPERIENCES OF AMERICA RING TRUE AND THESE ARE WHAT CHINESE AUDIENCES EAGER FOR INFORMATION ABOUT THE WORLD OF THEIR AMERICAN COUSINS WILL COME TO SEE THEY WON'T BE GETTING THE BOOK'S FULL FLAVOR THE MOTHERS' BROKEN ENGLISH EMBARRASS YOU BE MY DAUGHTER IS UNTRANSLATABLE IN MANDARIN THE MOTHERS' NATIVE TONGUE AND THE LANGUAGE OF THE PLAY INSTEAD LONG WHARF'S TONYNOMINATED DIRECTOR ARVIN BROWN HAS THEM EXPRESS THEIR DIFFICULTY WITH THEIR DAUGHTERS' AMERICANIZATION WITH FACIAL EXPRESSIONS AND GESTURES THIS PROBABLY WOULD MAKE SENSE EVEN IN AN ENGLISHLANGUAGE STAGING INDEED MR BROWN IMPROVES ON THE NOVEL WITH ANOTHER CLEVER PIECE OF STAGECRAFT HE USES COLORCOORDINATED COSTUMES TO HELP THE AUDIENCE DISTINGUISH BETWEEN THE FOUR MOTHERDAUGHTER PAIRS IN THE BOOK YOU CAN'T ALWAYS TELL EASILY WHICH PAIR MS TAN HAS IN MIND IN THE PLAY ONE PAIR IS ALWAYS IN RED ANOTHER BLUE AND SO ON BUT THEIR ACTUAL CLOTHES ARE QUITE DIFFERENT DOWDY MANDARIN OUTFITS FOR THE MOTHERS HIP GEAR FOR THE DAUGHTERS THE WOMEN TELL THEIR STORIES ON A MINIMALIST WHITE SET BUT EVEN THE APPARENT SIMPLICITY OF THIS DESIGN BY THE CHINESEAMERICAN THEATER VETERAN MING CHO LEE RAN INTO PROBLEMS TYPICAL OF THOSE THE ENTIRE PROJECT FACED MR LEE HAD PLANNED FOR MORE THAN A DOZEN WHITE DOOR FRAMES TO SLIDE SILENTLY ON HANGING TRACKS ACROSS THE STAGE CREATING ROOMS HALLWAYS AND WHOLE APARTMENTS AS THE ACTION REQUIRED YET THE LOCAL STAGE MANAGERS FAILED FOR ONE REASON OR ANOTHER TO COME UP WITH THE SIMPLE ROPEANDPULLEY ARRANGEMENT THIS EFFECT REQUIRED AND SO MR BROWN HAD TO REARRANGE MANY SCENES AND HALT THE ACTION WHILE STAGEHANDS IN WHITE SLIDE SCREECHING DOOR FRAMES SIMILARLY SPECIAL WHITE FABRIC MEANT TO BE OPAQUE OR TRANSPARENT WHEN LIT FROM OPPOSITE SIDES WAS UNAVAILABLE AND ITS FLIMSY REPLACEMENT ALSO HAS TO BE PULLED ONSTAGE MR BROWN WAS NOT UNPREPARED FOR THESE AND OTHER HEADACHES IN 1986 HE DIRECTED THE US NATIONAL THEATER OF THE DEAF IN A TOUR OF PERFORMANCES ACROSS CHINA ON THAT TRIP HE WAS AT FIRST SHOCKED HE SAYS BY CHINA'S WIDESPREAD ABUSE OF ITS DEAF PEOPLE THEN AS THE AMERICANS AND CHINESE BEGAN COMMUNICATING IN THEIR RESPECTIVE SIGN LANGUAGES MANY OF THE CHINESE FOUND THEIR VOICES SO TO SPEAK IT WAS LIKE THE BEST KIND OF COMING OUT OF THE CLOSET HE SAYS YOU WERE VERY AWARE OF THE KIND OF REPRESSION THAT EXISTED WHEN PLANS FOR JOY LUCK WERE BROACHED IN 1990 MR BROWN DID NOT LEAP AT THE CHANCE TO RETURN TO CHINA THE TIANANMEN TRAGEDY WAS FRESH IN MINDS AROUND THE WORLD HIS ABSENCE FROM LONG WHARF FOR FIVE WEEKS OF REHEARSALS WOULD ORDINARILY HAVE TO BE JUSTIFIED BY SUBSTANTIAL INCOME LANGUAGE WOULD BE AN OBSTACLE AS HE SPEAKS NO MANDARIN AND THE CAST LITTLE ENGLISH AND HE SAYS HE DIDN'T WANT TO SEEM ANTIAMERICAN THOSE CHINESE WHO WEREN'T DOCTRINAIRE IN THEIR CRITICISM OF AMERICA HE SAYS WERE REALLY ROMANTIC ABOUT THE AMERICAN DREAM HOW MUCH MONEY THERE WAS TO BE MADE HOW MUCH FREEDOM THERE WAS TO EXPRESS THOUGHTS AND SO ON I WOULD BE THE ONE TO EXPRESS CRITICAL THOUGHTS AND THEY'D LOOK AT ME LIKE I WAS CRAZY SINCE THAT TIME MR BROWN SAYS INCREASING SINOUS INTERACTION IN MANY SPHERES HAS MADE BOTH SIDES' EXPECTATIONS OF THE OTHER MORE REALISTIC 9308190056 930819 HOW TO BREAK THE FAA BOTTLENECK BY ROBERT W POOLE JR TODAY THE NATIONAL COMMISSION TO ENSURE A STRONG COMPETITIVE AIRLINE INDUSTRY FORMALLY REPORTS BACK TO THE WHITE HOUSE AND CONGRESS ONE OF ITS MOST IMPORTANT PROPOSALS IS TO SPIN OFF THE AIR TRAFFIC CONTROL SYSTEM FROM THE FEDERAL AVIATION ADMINISTRATION SETTING IT UP AS A USERFUNDED GOVERNMENT CORPORATION IN MAKING THIS PROPOSAL THE COMMISSION RECOGNIZES WHAT MORE THAN A DECADE OF STUDIES HAVE DOCUMENTED THE TECHNOLOGICALLY BACKWARD AIR TRAFFIC CONTROL SYSTEM IS ONE OF THE CHIEF CONSTRAINTS ON HEALTHY AVIATION GROWTH THE FEDERAL BUDGET PROCESS STARVES THE SYSTEM OF FUNDS CUMBERSOME FEDERAL PROCUREMENT REGULATIONS MAKE BUYING HIGHTECH EQUIPMENT SO SLOW THAT IT'S OBSOLETE BY THE TIME IT'S IN SERVICE THE SAME SATELLITE TECHNOLOGY THAT PROVED SO VALUABLE IN DESERT STORM COULD FORM THE BASIS FOR A DRAMATICALLY MORE COSTEFFECTIVE AIR TRAFFIC CONTROL SYSTEM BUT IT WOULD LIKELY TAKE DECADES FOR TODAY'S ENCUMBERED FAA TO BRING IT ABOUT DELAYS CAUSED BY AIR TRAFFIC CONTROL BOTTLENECKS COST AIRLINES AND THEIR PASSENGERS SOMEWHERE BETWEEN 300 MILLION AND 15 BILLION A YEAR DEPENDING ON WHOSE ESTIMATE IS USED AND SAFETY SUFFERS AS WELL CIVIL SERVICE RULES MAKE IT VERY DIFFICULT TO ATTRACT AND KEEP ENOUGH HIGHLY TRAINED PEOPLE IN HIGHSTRESS HIGHCOSTOFLIVING PLACES LIKE NEW YORK CHICAGO AND LOS ANGELES AND THERE'S A BUILTIN CONFLICT OF INTEREST BETWEEN THE FAA'S SAFETY REGULATORY ROLE AND ITS ROLE AS THE OPERATOR OF THE AIR TRAFFIC CONTROL SYSTEM WHILE SPINNING OFF AIR TRAFFIC CONTROL MAY SOUND LIKE A DRASTIC REMEDY IT'S HARDLY UNTRIED NEW ZEALAND DID SO IN 1987 AND THE RESULTING SUCCESS HAS INSPIRED A NUMBER OF OTHER AIR TRAFFIC CONTROL CORPORATIZATIONS SWITZERLAND SET UP SWISSCONTROL IN 1988 AND GERMANY FOLLOWED SUIT IN 1992 COMBINING MILITARY AND CIVIL AIR TRAFFIC CONTROL AND SPINNING THEM OFF AS A COMMERCIAL COMPANY SOUTH AFRICA IS DOING LIKEWISE AND A NUMBER OF OTHER COUNTRIES INCLUDING CANADA HAVE SUCH TRANSITIONS UNDER STUDY NONE OF THESE COUNTRIES HAS PRIVATIZED AIR TRAFFIC CONTROL IN EACH CASE GOVERNMENT HAS RETAINED CONTROL OF THE CORPORATION BUT IN EVERY CASE DEPENDENCE ON TAX FUNDING HAS CEASED TO BE REPLACED BY USER CHARGES EACH AIR TRAFFIC CONTROL CORPORATION IS SET UP ON COMMERCIAL PRINCIPLES WITH MANAGEMENT AND BOARD RECRUITED FROM THE PRIVATE SECTOR AND IN EACH CASE SAFETY REGULATION HAS REMAINED IN GOVERNMENT NOW AT ARMSLENGTH FROM THE AIR TRAFFIC CONTROL COMPANY IN THE US CONTEXT THIS WOULD ARGUE FOR SPINNING OFF ONLY THE FAA'S AIR TRAFFIC CONTROL OPERATIONS AND MAINTENANCE BRANCHES LEAVING WITHIN A REVISED FAA TWO MAIN FUNCTIONS SAFETY REGULATION AND AIRPORT GRANTS BOTH ARE INHERENTLY GOVERNMENTAL FUNCTIONS AND SHOULD CONTINUE TO BE PAID FOR BY AVIATION EXCISE TAXES REASON FOUNDATION CALCULATIONS INDICATE THAT FUNDING THE NEW FAA WOULD REQUIRE AN AIRLINE TICKET TAX OF ONLY 35 DOWN FROM THE CURRENT 8 A MAJOR BENEFIT TO AIRLINES AND PASSENGERS THE ONLY CHALLENGING ASPECT OF SPINNING OFF AIR TRAFFIC CONTROL IS DEVISING A POLITICALLY ACCEPTABLE USERFEE SCHEDULE UNDER TODAY'S SYSTEM GENERAL AVIATION USERS NONAIRLINE AND NONGOVERNMENTAL AIRCRAFT PAY ONLY 3 OF AVIATION USER TAXES BUT USE BETWEEN 21 AND 61 OF AIR TRAFFIC CONTROL SERVICES YET PRIVATE PILOTS ARE NUMEROUS VOCAL AND WELLORGANIZED PROTECTORS OF THEIR INTERESTS THE REASON FOUNDATION USERFEE PROPOSAL RESTS ON THREE BASIC PRINCIPLES 1 NO ONE PAYS FOR SERVICES THEY DON'T USE 2 MARGINAL CUSTOMERS PAY ONLY MARGINAL COSTS AND 3 ALL OTHER CHARGES SHOULD BE BASED ON LONGRUN ECONOMIC COSTS UNDER THIS PLAN NONCOMMERCIAL TYPICALLY SINGLEENGINE AND TWINENGINE PISTON AIRCRAFT NORMALLY WOULD PAY NO FEES SINCE THEY MOSTLY FLY OUTSIDE OF CONTROLLED AIRSPACE WHEN THEY DID LAND AT AN AIRPORT WITH A SMALL TOWER THEY WOULD PAY ABOUT 2 TO FILE A FLIGHT PLAN THEY WOULD PAY 9 TO 18 BUSINESS JETS AND TURBOPROPS WOULD PAY SEVERAL TIMES THOSE AMOUNTS A TINY ADDITION TO THEIR OPERATING COSTS AIRLINES AND MILITARY AIRCRAFT AS IN OTHER COUNTRIES WOULD PAY LARGER FEES BASED ON THEIR RELATIVE USE OF THE AIR TRAFFIC CONTROL SYSTEM IN EXCHANGE FOR THESE FEES AVIATION USERS WOULD GET AN AIR TRAFFIC CONTROL SYSTEM ABLE TO TAKE FULL ADVANTAGE OF TODAY'S AND TOMORROW'S TECHNOLOGY THE AIRLINE COMMISSION HAS MADE ITS RECOMMENDATION WHAT'S NEEDED NOW IS ACTION TO IMPLEMENT THE PROPOSAL VICE PRESIDENT GORE'S REINVENTING GOVERNMENT TASK FORCE SHOULD EMBRACE THIS PROPOSAL AS A PROTOTYPE REINVENTING THE AIR TRAFFIC CONTROL SYSTEM AS A USERFUNDED CORPORATION WOULD INCREASE THE NUMBER OF CONTROLLERS SAVE LIVES IMPROVE AIRLINE SERVICE AND HELP TO ENSURE A STRONG COMPETITIVE AIRLINE INDUSTRY MR POOLE IS PRESIDENT OF THE REASON FOUNDATION IN LOS ANGELES HE IS A FORMER AEROSPACE ENGINEER WHO HAS ADVISED BOTH THE US AND CALIFORNIA DEPARTMENTS OF TRANSPORTATION 9308190055 930819 BUSINESS BRIEF RB&W CORP SALE OF 2 PLANTS COMPLETED 3RDPERIOD CHARGE EXPECTED RB&W CORP MENTOR OHIO SAID IT COMPLETED THE ANNOUNCED SALE OF TWO MANUFACTURING PLANTS BUT SAID A DELAY IN THE SALE WILL CAUSE IT TO REPORT A CHARGE OF 700000 IN THE THIRD QUARTER ENDING SEPT 30 IN THE THIRD QUARTER ENDED SEPT 26 1992 RB&W EARNED 233000 OR FOUR CENTS A SHARE ON AN EXTRAORDINARY GAIN OF 41000 OR ONE CENT A SHARE REVENUE IN THE 1992 THIRD QUARTER WAS ABOUT 449 MILLION RB&W A MAKER OF FASTENERS INCLUDING NUTS BOLTS AND SCREWS SAID THE PURCHASER OF THE PLANTS IS A UNIT OF PRIVATELY HELD RELIANT INDUSTRIES INC 9308190054 930819 BUSINESS BRIEF HAROLD'S STORES INC SPECIALTYSTORE CHAIN SAYS PART OF LAWSUIT IS SETTLED HAROLD'S STORES INC SAID THAT PART OF A LAWSUIT IT FILED AGAINST DILLARD DEPARTMENT STORES INC WAS SETTLED AFTER DILLARD AGREED TO REMOVE ALLEGEDLY UNAUTHORIZED COPIES OF HAROLD'S GARMENTS FROM ITS STORES THE NORMAN OKLA SPECIALTYSTORE CHAIN SAID DILLARD ALSO AGREED TO CANCEL ORDERS FOR GOODS THAT WERE SCHEDULED FOR FALL DELIVERY AND WOULDN'T USE HAROLD'S GARMENTS AS SAMPLES FOR ITS MERCHANDISE HAROLD'S FILED SUIT AGAINST THE LITTLE ROCK ARK DEPARTMENTSTORE CHAIN IN AN OKLAHOMA CITY FEDERAL COURT LAST MONTH SEEKING AN INJUNCTION AND UNSPECIFIED DAMAGES FOR ALLEGED COPYRIGHT INFRINGEMENT THE AGREEMENT RESOLVING THE INJUNCTION PORTION OF THE LAWSUIT WAS ACCEPTED BY JUDGE DAVID L RUSSELL AT A SCHEDULED HEARING ON HAROLD'S REQUEST FOR A PRELIMINARY INJUNCTION A TRIAL ON THE DAMAGES PORTION IS SCHEDULED FOR JAN 10 A DILLARD OFFICIAL DIDN'T RETURN TELEPHONE CALLS SEEKING COMMENT 9308190053 930819 BUSINESS BRIEF BROWN & SHARPE MANUFACTURING CO FINMECCANICA UNIT ASSETS TO BE ACQUIRED FOR STOCK BROWN & SHARPE MANUFACTURING CO NORTH KINGSTOWN RI SAID IT SIGNED A NONBINDING LETTER OF INTENT TO ACQUIRE ASSETS OF A FINMECCANICA SPA UNIT FOR 25 MILLION NEW BROWN & SHARPE SHARES AT THE CURRENT SHARE PRICE THE TRANSACTION IS VALUED AT ABOUT 20 MILLION IN ADDITION BROWN & SHARPE WOULD ASSUME ABOUT 15 MILLION OF THE FINMECCANICA UNIT'S DEBT ALSO FINMECCANICA WOULD HAVE A CONTINGENT NONASSIGNABLE RIGHT TO OBTAIN AN ADDITIONAL 950000 SHARES BASED ON THE MARKET PRICE OF BROWN & SHARPE CLASS A SHARES ACHIEVING A CERTAIN TARGET DURING THE FIVE YEARS FOLLOWING THE CLOSE OF THE TRANSACTION THE FINMECCANICA UNIT DEA GROUP TURIN ITALY MAKES AND SELLS COMPUTERCONTROLLED METROLOGY OR MEASURING DEVICES IT HAD 1992 SALES OF 90 MILLION ACCORDING TO BROWN & SHARPE WHICH REPORTED TOTAL REVENUE OF 160 MILLION FOR THE YEAR ENDED DEC 26 1992 BROWN & SHARPE WHICH MAKES INDUSTRIAL AND ENGINEERING MEASURING DEVICES DIDN'T SAY WHEN IT EXPECTED TO COMPLETE THE TRANSACTION 9308190052 930819 BUSINESS BRIEF FIELDCREST CANNON INC COMPANY MAY SELL PREFERRED TO HELP FINANCE PURCHASE FIELDCREST CANNON INC SAID IT IS CONSIDERING SELLING PREFERRED STOCK TO HELP FINANCE ITS 1376 MILLION PURCHASE OF AMOSKEAG CO ITS LARGEST SHAREHOLDER LAST WEEK FIELDCREST A TOWEL AND BEDDING COMPANY BASED IN EDEN NC SIGNED A DEFINITIVE AGREEMENT TO BUY AMOSKEAG AMOSKEAG BASED IN BOSTON HOLDS ABOUT 30 OF FIELDCREST'S CAPITAL STOCK AND ABOUT 81 OF ITS VOTING STOCK FIELDCREST SAID IT HASN'T YET DETERMINED THE TERMS OF THE PREFERRED STOCK BUT SAID IT EXPECTS TO GENERATE PROCEEDS OF AT LEAST 70 MILLION FROM SUCH A SALE SEPARATELY A FIELDCREST SHAREHOLDER SUED THE COMPANY SEEKING TO BLOCK THE AMOSKEAG ACQUISITION THE SUIT FILED BY HYMAN KAUFMAN IN DELAWARE CHANCERY COURT ALLEGES THAT THE BUYOUT SIMPLY ENTRENCHES FIELDCREST MANAGEMENT AT THE EXPENSE OF OTHER SHAREHOLDERS A FIELDCREST SPOKESMAN SAID WE DON'T BELIEVE IT'S ENTRENCHMENT MANAGEMENT INTENDS TO RUN THE COMPANY FOR THE LONGTERM BENEFIT OF SHAREHOLDERS HE SAID 9308190049 930819 BUSINESS BRIEF BOWATER INC PAPER FIRM TO TAKE CHARGE OF 10 MILLION IN 3RD PERIOD BOWATER INC GREENVILLE SC SAID IT WILL TAKE A PRETAX CHARGE OF ABOUT 10 MILLION IN THE THIRD QUARTER TO COVER THE COST OF CLOSING SOME MAINE PAPER MILLS AND CUTTING 200 JOBS IN THE YEARAGO QUARTER THE PAPER COMPANY HAD A NET LOSS OF 179 MILLION OR 51 CENTS A SHARE ON SALES OF 3662 MILLION THE CUTS WILL BE MADE AT ITS GREAT NORTHERN PAPER INC UNIT IN MILLINOCKET MAINE BOWATER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ANTHONY P GAMMIE SAID MARKET CONDITIONS PROMPTED THE CUTBACKS AS PART OF ITS COSTCUTTING THE COMPANY IS SELLING SOME TIMBERLANDS AND REVIEWING OTHER OPERATIONS IN FEBRUARY THE COMPANY CUT ITS DIVIDEND BY 50 9308190048 930819 REVIEW & OUTLOOK EDITORIAL PETTY RETROACTIVITY YES IT'S TRUE THAT OTHER ADMINISTRATIONS HAVE RAISED TAXES RETROACTIVELY BUT OTHER ADMINISTRATIONS WEREN'T THE CLINTON ADMINISTRATION THIS ISSUE HAS BECOME A LIGHTNING ROD FOR AMERICA'S INCREASINGLY JAUNDICED PERCEPTIONS OF THE ADMINISTRATION THAT IT HAS NOW WHETHER IT'S WHACKING PHARMACEUTICAL COMPANIES OR THE WEALTHY THERE SEEMS TO BE AN INSTINCT HERE FOR DRIVING OFF THE ROAD TO HIT PEOPLE THIS ADMINISTRATION DOESN'T LIKE WORSE THAT THE PUBLIC WILL SOMEHOW APPLAUD OR ENJOY THESE HITS YOU'D THINK SOMETHING IMPORTANT REQUIRED THIS BEHAVIOR BUT TAX REVENUE CERTAINLY ISN'T IT AFTER A BIT OF PRODDING THE TREASURY FOLKS TELL US THAT RETROACTIVITY WILL BRING IN A MEAGER 89 BILLION BECAUSE TAXPAYERS HAVE THREE YEARS TO PAY WE'RE TALKING LESS THAN 3 BILLION A YEAR IN A 15 TRILLION FEDERAL BUREAUCRACY IS THIS CHUMP CHANGE REALLY WORTH THROWING THE INSULT OF RETROACTIVITY INTO THE FACE OF HARDWORKING SUCCESSFUL TAXPAYERS IT HAS THE FEEL OF A DIRTY TRICK AS IF THE GOVERNMENT DOESN'T PLACE ANY GREAT VALUE ON THE GOODWILL OF ALL ITS CITIZENS IF LLOYD BENTSEN AL GORE AND OTHER CLINTON SPIN DOCTORS SEEM BEFUDDLED THESE DAYS IT MAY BE BECAUSE THEIR DUMPONTHERICH STRATEGEM HASN'T MANAGED TO DOUSE THE FIRES OF DISAFFECTION BREAKING OUT AROUND THE LAND ON TV THE OTHER DAY MR BENTSEN POOHPOOHED THE CAMPAIGN TO REPEAL RETROACTIVITY IMPLYING THAT SOPHISTICATED TAXPAYERS WOULD HAVE SEEN THE TAX HIKES COMING AND TAKEN STEPS TO AVOID THEM THIS SORT OF CANDOR FROM THE TREASURY SECRETARY COULD PROVE CORROSIVE OF CLINTONOMICS MR BENTSEN WAS ONCE SOMETHING OF A SUPPLYSIDER AND OBVIOUSLY STILL UNDERSTANDS THAT PUNITIVE MARGINAL RATES DISCOURAGE PEOPLE FROM EARNING AND REPORTING INCOME AND MAY END UP ACTUALLY SHRINKING THE GOVERNMENT'S TAX TAKE MR CLINTON HAS BEEN SEMAPHORING A DIFFERENT MESSAGE TO THE LESS SOPHISTICATED TAXPAYER SUBLIMINALLY THESE FOLKS ARE SUPPOSED TO ABSORB THE FANTASY THAT BY MAKING THE RICH PAY THEIR FAIR SHARE MR CLINTON WILL DREDGE UP DOLLARS FOR FIXING THE DEFICIT AND LOADING UP THE PORK BARREL WITH NEW MIDDLECLASS ENTITLEMENTS MR CLINTON'S STILLPOOR POLL NUMBERS SHOW THAT VOTERS DON'T BUY THIS AND NEVER DID PEOPLE KNOW WHAT THEY WANT THEY WANT SPENDING CUTS BUT DON'T TAKE OUR WORD FOR IT ASK DIANNE FEINSTEIN SENATOR FEINSTEIN WILL SOON ENTER A BILL TO REPEAL RETROACTIVITY AND PAY FOR IT BY CHOPPING FEDERAL PROGRAMS SHE JUST GOT ELECTED BUT AS A FRESHMAN DEMOCRAT FROM CALIFORNIA VOTED FOR THE PRESIDENT'S BUDGET NOW SHE'S TRYING TO MAKE AMENDS WITH HER ANGRY CONSTITUENTS WE SUSPECT OTHER DEMOCRATS IN CONGRESS HAVE THE SAME PROBLEM NOW THAT SUGGESTS THE POSSIBILITY OF AN IDEA THAT TRULY WOULD HAVE BIPARTISAN ENDTHEGRIDLOCK SUPPORT REPEAL RETROACTIVITY WITH ITS PIDDLING REVENUES AND REPLACE IT WITH SPENDING CUTS SUPPORT FOR THE IDEA IS BEGINNING TO BUILD GOPERS LIKE SENATOR PAUL COVERDELL AND REPRESENTATIVE ED ROYCE ARE ONBOARD MR COVERDELL HAS FLOATED A CONSTITUTIONAL AMENDMENT ARGUING THAT IT'S UNPRECEDENTED FOR A WHITE HOUSE AND CONGRESS TO GO BACK AND PILE NEW TAXES ON INCOME THAT WAS EARNED BEFORE ANYBODY IN THE LEGISLATURE OR EXECUTIVE EVEN PUT HAND TO BIBLE IN THE OATHTAKING CEREMONY MR CLINTON WILL NO DOUBT MOBILIZE HIS LAWYERS TO ARGUE AND PROBABLY WIN AGAINST THOSE WHO PLAN TO SUE ON GROUNDS THAT HIS RETRO TAX HIKES ARE ALREADY UNCONSTITUTIONAL BUT WHY BOTHER PUTTING HIMSELF IN THE PATH OF THIS SQUALL WHEN HE COULD BE SCORING POINTS FOR TAKING ON THE BELTWAY SPENDAHOLICS MR CLINTON HIMSELF COULD GET OUT FRONT TO LEAD THE REPEALFORSPENDING CUTS CAMPAIGN WHERE TO START MAY WE SUGGEST SLASHING HONEY SUBSIDIES OR CUTTING 100000 FEDERAL WORKERS OR BRINGING ON A LINEITEM VETO TO CUT PORK BARREL PROJECTS WE DIDN'T INVENT THESE SPENDING CUTS THEY COME FROM PUTTING PEOPLE FIRST THE PRESIDENT'S CAMPAIGN DOCUMENT SOMEHOW THAT FELL OFF THE BUS AFTER THE FIRST TUESDAY IN NOVEMBER RIGHT ABOUT NOW FOLKS WANT SOME SIGN THAT MR CLINTON IS REALLY ON THE SAME FREQUENCY WITH THEM ANOTHER ADMINISTRATION MIGHT HAVE STORED UP ENOUGH CREDIBILITY TO SLIDE BY WITH RETROACTIVITY THIS ONE COULD GET SOME CREDIBILITY BACK BY REPEALING RETROACTIVITY AND SUBSTITUTING NEW DEMOCRAT SPENDING CUTS 9308190047 930819 REVIEW & OUTLOOK EDITORIAL BAN ALL THE TRACTORS CHALK UP ANOTHER PYRRHIC VICTORY FOR GOVERNMENT CONTROLS THE EUROPEAN COMMUNITY AGRICULTURAL COMMISSION RECENTLY RECOMMENDED THE PROHIBITION OF THE MILK PRODUCTION STIMULANT BOVINE SOMATROPIN BST FOR THE NEXT SEVEN YEARS IT CITED FEARS OF RUNNING SMALL MILK PRODUCERS OUT OF BUSINESS AND OF RAISING CONSUMER CONCERNS THE MOVE FOLLOWED A SIMILAR RECOMMENDATION A 90DAY MORATORIUM FOLLOWING BST'S APPROVAL THAT EMERGED FROM THE DEAL STRUCK OVER PRESIDENT CLINTON'S BUDGET A FOOD AND DRUG ADMINISTRATION REPORT ON BST SAFETY IS DUE OUT LATER THIS YEAR BUT WHY WAIT FOR THAT WHEN THE BUSINESS AT HAND IS STOPPING THE FUTURE THE FDA IS EXPECTED TO APPROVE BST A GROWTH HORMONE THAT OCCURS NATURALLY IN COWS COWS GIVEN THE HORMONE PRODUCE 6 TO 20 MORE MILK THE EXTRA BST IS NOT DISCERNIBLE IN THEIR MILK SCIENTISTS HAVE TESTIFIED THAT OVER DECADES OF TESTING NO HARM TO HUMANS HAS BEEN DETECTED AND AN FDA ADVISORY PANEL HAS AGREED YET THIS IS A THREAT TO THE LIKES OF SENATOR RUSS FEINGOLD OF WISCONSIN AND THE TIMID BUREAUCRATS OF THE EC THE FEINGOLD MORATORIUM ON BST IS ONE OF THE DEALS THAT WAS DONE TO ENSURE DEMOCRATIC SUPPORT FOR THE HOLDYOURNOSE CLINTON BUDGET BST FOR YEARS HAS BEEN ONE OF THE BOGEYMEN OF THE ANTIBIOTECHNOLOGY MOVEMENT IN THE US BUT IT LOOKED AS IF SCIENCE HAD WON THE ARGUMENT UNTIL THE CLINTON WHITE HOUSE HAD TO HOCK THE RANCH TO GET ITS BUDGET THE EUROPEANS MEANWHILE OFFER THE LUDDITE LOGIC OF THIS MOVEMENT THE EC ARGUES THAT EUROPE ALREADY PRODUCES MORE MILK THAN IT CAN USE AND TO TRY TO CONTROL PRODUCTION THE EC WORKING THROUGH NATIONAL GOVERNMENTS OPERATES A QUOTA SYSTEM THE EFFECT IS TO KEEP PRICES OF DAIRY PRODUCTS JACKED UP FOR THE BENEFIT OF DAIRY FARMERS POLITICIANS ARGUE THAT THE QUOTAS PROTECT THE SMALL FARMER BUT NO SERIOUS ECONOMIST REALLY BELIEVES THAT ANYMORE BIG FARMERS ARE THE BIG WINNERS IT DOESN'T SEEM TO HAVE OCCURRED TO THE OPPONENTS THAT MORE MILK PER COW WOULD MEAN FARMERS COULD USE FEWER COWS TO PRODUCE THE SAME AMOUNT OF MILK AND LESS OZONE DEPLETION WE DARE SAY AS LONG AS THE QUOTAS STAY IN PLACE EUROPE'S FARMERS WON'T BE ABLE TO SELL MORE MILK THAN THEY DO NOW OTHER THAN BY CHEATING THE QUOTAS WHICH IS COMMON THERE IS ANOTHER POINT POLITICIANS HERE AND IN EUROPE PAY MUCH LIP SERVICE TO THE PROBLEM OF THIRD WORLD HUNGER BST COULD EXPAND MILK PRODUCTION IN AFRICA AND ELSEWHERE BUT UNTIL MANUFACTURERS CAN ESTABLISH A FIRST WORLD MARKET BASE TO SPREAD THEIR COSTS AND SQUELCH THE SAFETY ISSUE THIRD WORLD USE WILL BE LIMITED THE HORMONE IS IN USE IN SEVERAL COUNTRIES HOWEVER RUSSIA LAST YEAR ACCEPTED A BST DONATION FROM MONSANTO KEEPING BST OFF THE MARKET NOT ONLY SENDS A FALSE MESSAGE ABOUT ITS SAFETY BUT SENDS A LARGER DARK SIGNAL FOR SCIENTIFIC ADVANCEMENT ON A BROAD SCALE COMPANIES WILL SHY AWAY FROM FUNDING RESEARCH FOR PRODUCTS THAT MAY BE REJECTED ON SUCH ARBITRARY AND ILLOGICAL GROUNDS AGRICULTURAL TECHNOLOGY FROM THE MCCORMICK REAPER TO TODAY'S HUGE JOHN DEERES WITH GANG PLOWS HAS FREED UP WORKERS FOR INDUSTRIALIZATION MAKING EVERYONE RICHER BETTER CLOTHED AND BETTER FED HAD SENATOR FEINGOLD'S WEIRD ECONOMIC THEORY GUIDED POLICY 60 YEARS AGO ITS LOGIC WOULD HAVE REQUIRED A BAN ON TRACTORS 9308190046 930819 WORLD MARKETS LONDON STOCKS JUMP TO A RECORD AMID SURGE IN EUROPEAN MARKETS TOKYO PRICES EDGE LOWER A WALL STREET JOURNAL NEWS ROUNDUP MARKETS ACROSS EUROPE SURGED YESTERDAY WITH LONDON STOCKS LEAPING 16 TO A RECORD ON BULLISH INFLATION DATA AND A REINVIGORATED DRUG SECTOR WHILE PRICES IN FRANKFURT RALLIED 13 TOKYO STOCKS EDGED LOWER IN QUIET TRADING AHEAD OF A MAJOR ECONOMIC POLICY MEETING WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT UP 060 REFLECTING INCREASES IN AMERICAN AND EUROPEAN MARKETS AND LOWER ASIA/PACIFIC MARKETS ADVANCED TECHNOLOGY/MEDICAL DEVICES STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 6228 UP 226 OR 38 WITH MEDTRONIC OF THE US POSTING A 58 GAIN IN ITS LOCAL CURRENCY STEEL STOCKS TRAILED AT 11912 DOWN 213 OR 18 WITH BETHLEHEM STEEL OF THE US SLIDING 61 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100 INDEX ROSE 486 POINTS TO 30736 CLOSE TO ITS HIGH FOR THE DAY THE FT 30 INDEX RAN UP 399 TO 24061 VOLUME WAS 8871 MILLION SHARES COMPARED WITH 6385 MILLION THE PREVIOUS DAY LONDON INVESTORS JUMPED ON WALL STREET'S RECORD AS THE TWO MARKETS SEEM TO BE FEEDING OFF EACH OTHER THE GAINS WERE FUELED BY THE BRITISH GOVERNMENT'S JULY INFLATION DATA WHICH SHOWED THE RETAIL PRICE INDEX DOWN 02 FROM JUNE AS EXPECTED THE NEWS REINFORCED THE PERCEPTION THAT INFLATION ISN'T STRONG ENOUGH TO KEEP THE GOVERNMENT FROM EASING MONETARY POLICY TO STIMULATE THE ECONOMY SHORTLY AFTER MIDDAY A BIG FUTURES BUYER SAID TO BE THE SAME ONE WHO SHOOK UP THE MARKET ON TUESDAY PLUNGED IN AGAIN GIVING THE CASH MARKET ANOTHER EXCUSE TO RALLY MEANWHILE PHARMACEUTICAL ISSUES PICKED UP AFTER PRESIDENT CLINTON LEFT OUT ANY MENTION OF DRUG PRICE CONTROLS IN OUTLINING HIS HEALTHCARE PROGRAM TO US GOVERNORS EARLIER THIS WEEK IN FRANKFURT THE DAX 30STOCK INDEX WHICH DROPPED 202 POINTS TUESDAY ROSE 2555 POINTS TO 193572 THE INDEX HAD FALLEN AS LOW AS 191956 SHORTLY AFTER THE OPENING BUT BEGAN RISING AFTER GETTING SIGNALS FROM YESTERDAY MORNING'S SECURITIES REPURCHASE AGREEMENTS ALLOCATION THAT GERMANY'S CENTRAL BANK THE BUNDESBANK WILL CONTINUE EASING KEY INTEREST RATES SOON THE SHARP RISE IN THE DAX SURPRISED ANALYSTS IN THE ABSENCE OF NEWS CONCERNING THE BIGGEST GAINERS THE GAINS WERE ALSO ATTRIBUTED TO BUYING BY FOREIGN INVESTORS AND THE EXPIRATION TOMORROW OF FUTURES AND OPTIONS CONTRACTS MOST OTHER EUROPEAN MARKETS POSTED STRONG GAINS IN PARIS STOCKS JUMPED 11 IN HEAVY VOLUME TO FINISH JUST A FEW POINTS SHY OF A RECORD AFTER THREE DAYS OF DECLINES FRENCH INVESTORS EXPECT NEW INTEREST RATE CUTS FROM THE BUNDESBANK WHICH COULD WELL MEAN NEW CUTS FOR FRANCE IN AMSTERDAM EQUITIES RESUMED THEIR MONTHLONG RALLY AS INVESTORS PILED INTO SHARES OF COMPANIES IGNORED IN RECENT WEEKS BUYING WAS BUOYED BY GAINS ELSEWHERE IN EUROPE AND ON WALL STREET IN MILAN PRICES FINISHED SLIGHTLY HIGHER AFTER A BOUT OF PROFITTAKING ERASED STRONG GAINS IN MADRID STOCKS CLIMBED 13 AS MORE INVESTORS CLIMBED ABOARD A TWOWEEK RALLY THAT BEGAN ON HOPES OF LOWER INTEREST RATES A STRONG BOND MARKET ALSO HELPED TO BOOST PRICES STOCKHOLM SHARES ADVANCED 28 IN HEAVY TRADING TO THEIR HIGHEST LEVELS THIS YEAR MOST SECTORS ENJOYED STRONG GAINS IN ZURICH SHARE PRICES CLIMBED ON A STRONG EARNINGS REPORT FROM CS HOLDING'S MAIN BANKING UNIT CREDIT SUISSE IN TOKYO THE NIKKEI 225STOCK INDEX WHICH DROPPED 5951 POINTS TUESDAY LOST 6880 TO 2077318 ON THURSDAY THE NIKKEI ROSE 250 POINTS TO CLOSE THE MORNING SESSION AT 2077568 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 280 MILLION SHARES DOWN FROM 3201 MILLION THE PREVIOUS DAY LOSERS OUTNUMBERED GAINERS 595362 THE TOKYO STOCK PRICE INDEX OR TOPIX OF FIRSTSECTION ISSUES WHICH FELL 629 POINTS TUESDAY DROPPED 589 POINTS TO 167586 DEALINGS WERE QUIET AS THE YEN'S AD VANCE AGAINST THE DOLLAR STALLED AND TRADERS OPTED TO WAIT ON THE SIDELINES FOR THE OUTCOME OF A MEETING THURSDAY OF GOVERNMENT ECONOMIC POLICY MAKERS IF THE MEETING FAILS TO PRODUCE CLEAR SIGNS OF NEW STIMULUS MEASURES THE MARKET WILL BE VULNERABLE ESPECIALLY WITH A FLOOD OF DOWNWARD REVISIONS OF EARNINGS FORECASTS LIKELY OVER THE COMING MONTH MOST OTHER ASIAN AND PACIFIC MARKETS FINISHED HIGHER IN SYDNEY STOCKS ROSE TO A SIXYEAR HIGH THE AUSTRALIAN GOVERNMENT'S BUDGET RELEASED TUESDAY WAS PERCEIVED AS GOOD NEWS FOR FINANCIAL MARKETS AND PRICES SUSTAINED THE MOMENTUM BUILT UP EARLIER THIS WEEK IN SINGAPORE SHARES ADVANCED 14 ON A LATE AFTERNOON RALLY TO A FOURTH STRAIGHT RECORD HIGH THE RUNUP FOLLOWED POSITIVE NEWS ON THE ECONOMY AND THE ANNOUNCEMENT OF DETAILS ON THE USE OF FUNDS FROM THE MANDATORY SOCIAL SAVINGS PLAN IN HONG KONG STOCKS RALLIED TO A THIRD STRAIGHT RECORD FINISH AS LATE BUY ORDERS ECLIPSED PROFITTAKING INTEREST COMMERCIAL AND INDUSTRIAL ISSUES WERE THE DAY'S LARGEST ADVANCERS FOLLOWED BY UTILITIES IN TAIPEI PRICES DROPPED AS SELLING PRESSURE LATE IN THE SESSION ERODED EARLY STRONG GAINS THE DECLINE FOLLOWED NEWS THAT THE MINISTRY OF INTERIOR PLANS TO START RAISING LAND PRICES TO CATCH UP WITH REAL MARKET PRICES WITHIN THREE YEARS IN SEOUL STOCKS SURGED 35 ON EXPECTATIONS THAT SOUTH KOREA'S GOVERNMENT WILL RAISE THE FOREIGN OWNERSHIP CEILING NOW SET AT 8 WHICH MANY FOREIGN INVESTORS CITE AS AN OBSTACLE TO PURCHASING KOREAN STOCKS IN WELLINGTON EQUITIES SOARED IN BUSY TRADING TO THEIR HIGHEST CLOSE IN ABOUT 3 1/2 YEARS AMONG CORPORATE DEVELOPMENTS IN WELLINGTON FLETCHER CHALLENGE JUMPED 47 NEW ZEALAND CENTS OR 16 TO NZ347 US192 THE FORESTRY AND RESOURCES CONGLOMERATE HAD A NZ3818 MILLION 2117 MILLION OPERATING PROFIT AFTER TAX AND ONETIME ITEMS IN THE YEAR ENDED JUNE 30 COMPARED WITH A NZ1575 MILLION LOSS THE PREVIOUS YEAR THE RESULTS WERE WELL ABOVE EXPECTATIONS IN FRANKFURT COMMERZBANK DROPPED 160 MARKS TO 32220 MARKS 19028 THE BANK'S PROFITS IN JULY AND AUGUST FOLLOWED THE TREND SET IN THE FIRST SIX MONTHS OF 1993 IN WHICH ITS GROUP OPERATING PROFIT ROSE 16 FROM A YEAR EARLIER VIAG FINISHED UNCHANGED THE DIVERSIFIED INDUSTRIAL GROUP'S PRETAX PROFIT FOR THE FIRST HALF OF 1993 FELL 21 TO 305 MILLION MARKS 1801 MILLION 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 9308190045 930819 MARKETING & MEDIA ADVERTISING SLEEPING GIANT' THE YELLOW PAGES TRIES TO WAKEN MADISON AVENUE BY KEVIN GOLDMAN THE YELLOW PAGES THE TELEPHONE BOOK THAT'S DUSTED OFF WHEN PIPES BURST KEYS ARE LOST THE AIR CONDITIONER BREAKS OR DINNER MEANS ORDERING PIZZA IS LOOKING BEYOND MOM AND POP ADVERTISERS TO SET ITS SIGHTS ON THE BIG TIME IT ISN'T GOING TO BE EASY PERSUADING MADISON AVENUE AND MAJOR NATIONAL CLIENTS TO DIVERT MONEY FROM SHRINKING BUDGETS TO PLACE ADVERTISEMENTS IN WHAT IS PERHAPS THE MOST CLUTTERED OF ALL COMMERCIAL ENVIRONMENTS THE YELLOW PAGES DIRECTORIES AFTER ALL ARE LITTLE MORE THAN COVERTOCOVER CHEAPLY PRODUCED DISPLAY ADS NEVERTHELESS THE YELLOW PAGES PUBLISHERS ASSOCIATION FORMED IN 1987 IS TAKING THAT UNORTHODOX STEP THE REASON REVENUES AREN'T GROWING AS FAST AS WE WOULD LIKE SAYS JIM LOGAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE ASSOCIATION WHICH INCLUDES 140 OF THE APPROXIMATELY 150 PUBLISHERS IN THE BUSINESS ALTHOUGH YELLOW PAGES ADVERTISING HAS ALMOST DOUBLED IN 10 YEARS LAST YEAR IT ROSE A SLENDER 1 OVERALL FOR THE 6000 DOMESTIC DIRECTORIES TO 93 BILLION FROM 92 BILLION IN 1991 THE VAST MAJORITY OF ADS SOLD ARE FOR LOCAL BUSINESSES LAST YEAR ALMOST 90 OF THE AD REVENUE WAS STRICTLY LOCAL FRANK BARTON PRESIDENT AND CHIEF EXECUTIVE OFFICER OF WAHLSTROM & CO IN STAMFORD CONN AN AD AGENCY THAT USES THE YELLOW PAGES FOR ITS CLIENTS CALLS THE DIRECTORIES SLEEPING GIANTS FOR ADVERTISERS THE BOOKS ARE PUBLISHED ONCE A YEAR MEANING EACH AD HAS A SHELF LIFE OF 12 MONTHS IT'S LIKE AN INDOOR BILLBOARD HE SAYS ONE OF THE CHALLENGES HE CONTINUES IS HOW TO GET ADVERTISERS TO REINFORCE THEIR BRANDS THROUGH THE YELLOW PAGES WHERE NATIONAL ADVERTISERS HAVE AN UNEXPECTED PRESENCE BUT A RELEVANT MESSAGE TO THAT END THE YELLOW PAGES PUBLISHERS ASSOCIATION IS QUIETLY CONDUCTING TESTS IN SEVEN EDITIONS GIVING AD SPACE AWAY TO NATIONAL ADVERTISERS INCLUDING PERRIER GROUP OF AMERICA PEPSICO PITTWAY'S FIRST ALERT SMOKE ALARM DRANO DRAIN CLEANERS AND CONAGRA'S MANWICH SLOPPY JOE SANDWICH AD TESTS ARE BEING CONDUCTED IN SPRINGFIELD MASS EL PASO TEXAS FLINT MICH AND MARIN COUNTY CALIF AMONG OTHER LOCALES ADS ARE POPPING UP IN PLACES THAT MAKE SENSE FOR EACH PRODUCT FOR INSTANCE PERRIER'S HALFPAGE AD WHICH PICTURES A BOTTLE OF THE SPARKLING MINERAL WATER AND THE HEADLINE KEEP YOUR NIGHTS SPARKLING CLEAR APPEARS IN THE HODGEPODGE OF RESTAURANT LISTINGS AMERICAN TELEPHONE & TELEGRAPH'S CALLING CARD AD WHICH SPORTS THE SLOGAN IT'S ALL IN THE CARDS RUNS WITH AIRLINE LISTINGS PEPSI ADS APPEAR WITH PIZZERIAS AND DRANO NOT UNEXPECTEDLY SHOWS UP IN THE HARDWARERETAIL SECTION FIRST ALERT IS INCLUDED AMONG DEPARTMENT STORE LISTINGS AND MANWICH WITH THE SLOGAN AMERICA'S FAVORITE AND PICTURES OF SLOPPY JOES IS FOUND NEXT TO LISTINGS FOR SCHOOLS ALBEIT A SOMEWHAT DISCONCERTING CONNECTION A PEPSI SPOKESWOMAN ENDORSES THE STRATEGY IT'S A NEW TWIST ON AN OLD WAY OF LISTING YELLOW PAGES USAGE IS UP PARTICULARLY IN THE PIZZA SECTION THE SOFTDRINK MAKER SAYS THE APPEARANCE OF ITS AD AMONG THE PIZZERIA LISTINGS IS AN UNEXPECTED SURPRISE CONSUMERS SEE OUR NAME IN THE SECTION AND HOPEFULLY THAT WILL PROMPT THEM TO ASK FOR PEPSI WHEN ORDERING IT'S A BUSINESS BUILDER A PERRIER SPOKESWOMAN SAYS THE TESTING REQUIRED NO RISK ON THE COMPANY'S PART SINCE IT WASN'T CHARGED FOR THE ADVERTISING BUT BRISTOLMYERS SQUIBB'S NUPRIN TRIED IT AND DIDN'T LIKE IT AND THE MARKETER IS NOW UNCONVINCED YELLOW PAGES ADVERTISING IS THE CURE FOR INCREASED COMPETITION I'M NOT SO SURE THIS IS A VENUE THAT WE WOULD CONTINUE TO PURSUE SAYS TED MAZZUCCA SENIOR MEDIA BUYER AT NUPRIN A SAMPLING OF CONSUMERS HE SAYS REVEALS THAT THE AD PLACED ABOVE OTHERS FOR DRUG STORES HAS VIRTUALLY NO IMPACT THE NUPRIN AD STANDS OUT WITH BIG BLACK BLOCK LETTERING THE SLOGAN NUPE IT WITH NUPRIN AND A PHOTOGRAPH OF THE PRODUCT BUT MR MAZZUCCA QUESTIONS WHETHER THE YELLOW PAGES WITH LOCAL ADS FOR THE LIKES OF RALPH PHARMACITY AND THRIFTY DRUGS & COSMETICS IS THE MOST APPROPRIATE PLACE FOR US TO GO MR MAZZUCCA POINTS TO ANOTHER DISADVANTAGE A COMPANY CAN'T GAUGE SALES BASED ON AN APPEARANCE IN THE YELLOW PAGES AN INABILITY THAT MADDENS MADISON AVENUE GIVEN ITS PENCHANT FOR TRYING TO QUANTIFY THE PAYOFF OF EVERY AD DOLLAR SPENT ONE POSSIBLE REMEDY IS TO INCLUDE COUPONS IN THE ADS SAYS TIM DISCIPIO DIRECTOR OF NEW BUSINESS DEVELOPMENT AT TMP WORLDWIDE IN RIDGEFIELD CONN AN AGENCY SPECIALIZING IN YELLOW PAGES ADS THAT HAS PLACED THEM FOR PEPSI NUPRIN AND DRANO ULTIMATELY ANYTHING IS POSSIBLE SAYS MR LOGAN OF THE YELLOW PAGES PUBLISHERS ASSOCIATION PRELIMINARY DATA FROM THE AD TEST WILL BE READY BY NEXT MONTH THE YELLOW PAGES KNOWN AS EVERYTHING FROM THE SMART PAGES IN CALIFORNIA TO THE EVERYTHING PAGES IN VARIOUS OTHER STATES ALSO NEEDS TO CENTRALIZE A SALES FORCE AND GET THE MESSAGE OUT MR LOGAN SAYS EVERY CITY AND MANY SMALL TOWNS AND VILLAGES HAVE THEIR OWN YELLOW PAGES LISTINGS WHICH ARE PUBLISHED ANNUALLY THE ADVANTAGE TO NATIONAL ADVERTISERS IS THAT THE SAME AD FOR SAY PEPSI OR DRANO CAN APPEAR IN EVERY YELLOW PAGES SEPARATE ADS DON'T HAVE TO BE PRODUCED WE FEEL THAT THE YELLOW PAGES IS USED WHEN THERE IS A NEED MR LOGAN SAYS WOULDN'T THAT BE A GOOD TIME TO REINFORCE THE BRANDS INTERNATIONAL BUSINESS MACHINES CORP ADDED THREE EUROPEAN ENTRIES TO THE LIST OF CONTENDERS FOR ITS GLOBAL PERSONALCOMPUTER ACCOUNT BOULET DRU DUPUY PETIT PARIS THE PARIS OFFICE OF OMNICOM GROUP'S DDB NEEDHAM AND THE TWOAGENCY TEAM OF GGT ADVERTISING OF LONDON AND GGK OF ZURICH THE THREE JOIN FIVE US COMPETITORS FOR IBM'S PC ADVERTISING WHICH IS EXPECTED TO BILL 80 MILLION WORLDWIDE INTERPUBLIC GROUP'S LINTAS ONE OF THE US CONTENDERS IS THE INCUMBENT ON THE PC ACCOUNT IN THE US AND SPLITS THE EUROPEAN PORTION WITH GGK TERMINATION AIR FRANCE AND AGENCY TBWA ADVERTISING A UNIT OF OMNICOM GROUP SAID THEY WILL SPLIT UP IN NOVEMBER WHEN THE STATEOWNED AIRLINE WILL MOVE ITS ESTIMATED 5 MILLION ACCOUNT TO WESTERN MEDIA INTERNATIONAL A NEW YORK MEDIA SERVICE FOR US THIS ENDS UP BEING MORE EFFICIENT SAID NILS PEYRON THE AIRLINE'S DIRECTOR OF ADVERTISING ADVERTISING CREATED BY TBWA WILL REMAIN ON THE AIR AND IN MAGAZINES HE SAID PRUNES AND GUINEA PIGS CHRYSLER CORP IS AIMING AT YOUNGER RICHER CUSTOMERS IN AD CAMPAIGNS FOR 1994 CHRYSLER AND PLYMOUTH CARS COCOON STARS WILFORD BRIMLEY AND DON AMECHE REUNITE IN A SPOT FOR THE CHRYSLER NEW YORKER IN WHICH MR BRIMLEY TURNS HIS NOSE UP AT A BOWL OF PRUNES AND SPEEDS OFF IN THE CHRYSLER SEDAN WITH HIS FRIEND ANOTHER SPOT FOR THE CONCORDE SEDAN THAT CHRYSLER INTRODUCED LAST YEAR SHOWS GUINEA PIGS TO MAKE THIS POINT SOMETIMES GUINEA PIGS HAVE A GREAT EXPERIENCE 9308190044 930819 REVIEW & OUTLOOK EDITORIAL ASIDES DISCHARGE CHARGE REP JIM INHOFE'S EFFORT TO END SECRET DISCHARGE PETITIONS WHICH ALLOW MEMBERS TO PUBLICLY CLAIM SUPPORT FOR A BILL WHILE PRIVATELY WORKING FOR ITS DEFEAT IS ATTRACTING SOME BIGNAME BOOSTERS RUSH LIMBAUGH ALERTED HIS LISTENERS TO OUR PUBLICATION THIS WEEK OF THE LIST OF 223 MEMBERS WHO REFUSED TO JOIN MR INHOFE'S EFFORT THE 50 STATE DIRECTORS OF ROSS PEROT'S ORGANIZATION HAVE BEEN ASKED TO MAKE DISCHARGE PETITION REFORM A HIGH PRIORITY MR PEROT HIMSELF WILL DISCUSS THE SUBJECT ON CSPAN TONIGHT AT 8 PM EDT OUTRAGED VOTERS ARE ALREADY MAKING AN IMPACT REP KAREN THURMAN A FIRSTTERM FLORIDA DEMOCRAT FAXED MR INHOFE YESTERDAY TO SAY SHE WILL NOW SIGN UP BY THE WAY THROUGH A PRODUCTION ERROR REP DAVE MCCURDY OF OKLAHOMA WAS OMITTED FROM THE LIST WE PUBLISHED HIS OFFICE CONFIRMS HE IS NOT SUPPORTING REP INHOFE 9308190043 930819 MARKETING & MEDIA TIMES PUBLISHING PAYS 56 MILLION FOR GROUP'S SHARES BY ALECIA SWASY STAFF REPORTER OF THE WALL STREET JOURNAL TIMES PUBLISHING CO SAID IT PAID 56 MILLION TO BUY BACK ITS SHARES FROM A GROUP LED BY ROBERT M BASS WHICH MADE A RUN FOR THE COMPANY IN 1990 TIMES PUBLISHING SAID THE PURCHASE PRICE COVERS ALL REMAINING SHARES OWNED BY A GROUP OF INVESTORS LED BY MR BASS THE ST PETERSBURG FLA COMPANY WILL PAY AN ADDITIONAL 1 MILLION IN 1995 FOR SHARES DONATED TO STANFORD UNIVERSITY BY THE GROUP AT THAT POINT NO COMPANY SHARES WILL BE HELD BY OUTSIDERS IN REVEALING THE PRICES THE PUBLISHER OF THE ST PETERSBURG TIMES LIFTED A THREEYEAR VEIL OF SECRECY OVER ITS STOCK BUYBACK AGREEMENT WITH MR BASS IN 1988 THE GROUP PAID 28 MILLION FOR A 40 STAKE IN TIMES PUBLISHING THE CONFIDENTIAL AGREEMENT GENERATED CONSIDERABLE INTEREST IN THE NEWSPAPER INDUSTRY BECAUSE THE ST PETERSBURG TIMES IS ONE OF THE LAST REMAINING INDEPENDENT PAPERS THE AGREEMENT ALSO DREW FIRE FROM THE FLORIDA ATTORNEY GENERAL WHO RAISED CONCERNS THAT THE ACCORD MIGHT THREATEN THE FINANCIAL HEALTH OF THE POYNTER INSTITUTE FOR MEDIA STUDIES THE EDUCATIONAL FOUNDATION THAT OWNS A MAJORITY STAKE IN TIMES PUBLISHING HOWEVER THE TEXAS GROUP DIDN'T PROFIT AS MUCH AS WAS EXPECTED INDUSTRY ANALYSTS HAD ESTIMATED TIMES PUBLISHING PAID ANYWHERE BETWEEN 50 MILLION AND 200 MILLION FOR THE STAKE TIMES PUBLISHING NEGOTIATED A GOOD DEAL SAID JOHN MORTON MEDIA ANALYST WITH LYNCH JONES & RYAN BUT A SPOKESMAN FOR MR BASS SAID THE GROUP IS PLEASED CALLING THE SETTLEMENT FAVORABLE TO ALL PARTIES I FEEL RELIEF AND SATISFACTION THAT THE PAPER HAS COME THROUGH THIS DIFFICULT TIME SO WELL SAID ANDREW BARNES TIMES EDITOR PRESIDENT AND CHIEF EXECUTIVE IN A LETTER TO EMPLOYEES TIMES PUBLISHING WHICH ALSO PUBLISHES CONGRESSIONAL QUARTERLY MAGAZINE FLORIDA TREND AND OTHER MAGAZINES EXPECTS 1993 REVENUE OF ABOUT 200 MILLION THE COMPANY SAID THE BASS GROUP WHICH OWNED 200 SHARES OF THE COMPANY RECEIVED 53 MILLION FOR 150 OF THE SHARES IN 1990 TIMES PUBLISHING SAID IT EXERCISED A CALL AGREEMENT PAYING 3 MILLION FOR EIGHT SHARES THAT THE GROUP RETAINED DURING THE PAST THREE YEARS THOSE SHARES HAD RECEIVED 8540 IN DIVIDENDS PER SHARE EACH YEAR BUT THE INVESTMENT GROUP HAD TRANSFERRED VOTING POWER TO MR BARNES THE COMPANY FINANCED THE BASS BUYBACKS FROM ITS CASH RESERVES AND BORROWED 9 MILLION IN LATE 1990 THE COMPANY HAS ALREADY REPAID THAT DEBT MR BASS DONATED THE OTHER 42 SHARES TO STANFORD UNIVERSITY WHICH RECEIVES THE SAME DIVIDENDS EACH YEAR UNTIL AUGUST 1995 WHEN THE COMPANY WILL BUY THEM BACK FOR 1 MILLION AT THAT POINT ALL SHARES WILL BE HELD BY THE POYNTER INSTITUTE THE FOUNDATION WAS SET UP BY NELSON POYNTER WHO CONTROLLED THE ST PETERSBURG TIMES FROM 1947 UNTIL HIS DEATH IN 1978 MR POYNTER ALSO CREATED THE INSTITUTE TO AVOID REAL ESTATE TAXES AND TO MAINTAIN LOCAL CONTROL OF THE PAPER IN 1988 THE BASS GROUP PURCHASED ITS TIMES PUBLISHING STOCK FROM MR POYNTER'S TWO NIECES THE NIECES INHERITED THEIR STOCK FROM THEIR MOTHER ELEANOR POYNTER JAMISON MR POYNTER'S SISTER THE BASS GROUP OFFERED TO BUY THE REMAINING 60 OF THE COMPANY FOR 270 MILLION THE OFFER WAS REJECTED AND THE BASS GROUP SUED CLAIMING UNFAIR DIVIDEND PAYMENTS THAT LAWSUIT WAS DISMISSED AS PART OF THE AUGUST 1990 AGREEMENT 9308190042 930819 BUSINESS BRIEF COMPUSA INC COMPUTER SUPERSTORE CHAIN'S NET SURGED IN FOURTH PERIOD COMPUSA INC BOOSTED BY AGGRESSIVE EXPANSION SAID ITS FISCAL FOURTHQUARTER PROFIT ROSE 65 MEETING ANALYSTS' ESTIMATES THE DALLASBASED COMPANY WHICH OPERATES 54 COMPUTER SUPERSTORES POSTED NET INCOME FOR THE JUNE 26 QUARTER OF 38 MILLION OR 20 CENTS A SHARE COMPARED WITH 23 MILLION OR 13 CENTS A SHARE A YEAR AGO ON 13 FEWER SHARES OUTSTANDING SALES GREW 63 TO 3875 MILLION FROM 2371 MILLION A YEAR EARLIER SALES WERE BOOSTED BY THE ADDITION OF 20 STORES IN THE PAST YEAR SIX OF THEM IN THE FOURTH QUARTER AND A 247 GAIN IN STORES OPEN AT LEAST A YEAR A SPOKESMAN SAID GROSS PROFIT MARGINS ALSO IMPROVED TO 136 FROM 126 A YEAR AGO FOR THE FISCAL YEAR COMPUSA HAD NET OF 123 MILLION OR 67 CENTS A SHARE UP NEARLY 58 FROM YEAREARLIER NET OF 78 MILLION OR 62 CENTS A SHARE AFTER PAYMENT OF A 16 MILLION IN PREFERRED STOCK DIVIDENDS THERE WERE 44 MORE SHARES OUTSTANDING IN FISCAL 1993 SALES INCREASED 63 TO 134 BILLION FROM 8208 MILLION LAST YEAR IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY COMPUSA CLOSED AT 24625 UP 25 CENTS 9308190041 930819 CAR TALES DOG DAYS AT HONDA ARE THE CAT'S MEOW FOR CHRYSLER'S DEALERS WHILE THE ACCORD IS IN A RUT THE HEIRS OF IACOCCA REAP SALES INSTEAD OF SARCASM A HONDA MAN SHEDS HIS TOYS BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON DAVID MCDAVID FULLTIME HONDA DEALER AND SOMETIME PHILOSOPHER OFFERS THIS HOMILY ABOUT THE CAR BUSINESS IN THE 1990S I'VE LEARNED THAT THE SUN DOESN'T SHINE ON THE SAME DOG EVERY DAY MR MCDAVID ACTUALLY HAS TWO METAPHORICAL DOGS IN MIND HONDA THE CAR PHENOMENON OF THE 1980S AND CHRYSLER THE CAR COMPANY THAT HONDA AND EVERYBODY ELSE USED TO KICK AROUND AS MR MCDAVID KNOWS BETTER THAN MOST THINGS CHANGE THESE DAYS HONDA MOTOR CO FINDS ITS US MARKET SHARE SHRINKING IN A SALES SLUMP UNIMAGINABLE A FEW YEARS BACK EVEN HEAVY DISCOUNTING HASN'T APPRECIABLY BOOSTED ITS FORTUNES ONCELOYAL CUSTOMERS COMPLAIN THAT TODAY'S HONDAS ARE DATED AND UNINSPIRED CHRYSLER CORP MEANWHILE SEEMS TO HAVE REINVENTED ITSELF AFTER A DECADE OF MISSTEPS THAT GAVE IT A REPUTATION FOR STODGY DESIGN AND UNRELIABILITY IT HAS FOUGHT A SUCCESSFUL BATTLE TO STAY AT THE TOP OF THE HOT MINIVAN MARKET WHILE LAUNCHING FLASHY NEW CAR MODELS THAT CURRENTLY MAKE ITS 4739 US SHOWROOMS AMONG THE BUSIEST IN THE COUNTRY CONSIDERING THAT HONDA ONCE ALL BUT DEFINED JAPANESE CARMAKING ACUMEN WHILE CHRYSLER WAS ON THE VERGE OF BANKRUPTCY IT'S A REVERSAL OF FORTUNES SAYS JAKE KELDERMAN AN OFFICIAL FOR THE NATIONAL AUTOMOBILE DEALERS ASSOCIATION OR NADA CARS BEING A CUTTHROAT BUSINESS MR MCDAVID'S CROSSTOWN RIVALS AT RIVER OAKS CHRYSLERPLYMOUTH FIND SWEET IRONY IN HONDA'S DISCORD WITH CONSUMERS STEVEN E WOLF A RIVER OAKS VICE PRESIDENT ADMITS THAT SELLING CHRYSLERS IN THE 1980S WAS ONE OF THE WORST JOBS IN THE WORLD INDEED SOMETHING OF AN EMBARRASSMENT BUT NOW SALES ARE SOARING MORALE IS HIGH AND WE'RE GETTING PEOPLE IN CHRYSLERS WHO HAVE NEVER BOUGHT A CHRYSLER IN THE PAST FOR MR MCDAVID WHO ONCE HAD A PERSONAL HELICOPTER TO FLIT BETWEEN HIS ROARING HONDA FRANCHISES THIS IS INDEED A STRANGE TURN OF EVENTS SLUMPING HONDA SALES HAVE FORCED HIM TO DITCH THE HELICOPTER AND HE NO LONGER ASSERTS AS HE DID IN THE 1980S THAT CHRYSLER IS THE JOKE OF THE INDUSTRY THERE ARE CAVEATS TO CHRYSLER'S EUPHORIA OF COURSE CHRYSLER STILL HASN'T MATCHED HONDA IN PRODUCT QUALITY AND CUSTOMER LOYALTY INDUSTRY ANALYSTS SAY AND THE HISTORY OF DETROIT IS LITTERED WITH ONCE HOTSELLING REBOUND MODELS THAT FIZZLE WHEN FICKLE CONSUMERS STAMPEDE TO A RIVAL'S LATEST OFFERING MOREOVER HONDA'S PROBLEMS TO SOME EXTENT REFLECT THE LARGER DOLDRUMS THAT VIRTUALLY ALL JAPANESE CAR MAKERS FIND THEMSELVES IN THESE DAYS THE POWERFUL YEN MAKES JAPANESEMADE PRODUCTS COSTLY TO DOLLARSPENDING CONSUMERS EVEN AS JAPAN'S OWN CAR BUYERS GROW STINGY AMID AN ECONOMIC SLUMP THE USBASED MANUFACTURING OPERATIONS OF HONDA AND OTHERS HELP RELIEVE SOME OF THIS PRESSURE BUT CONSIDER THAT ONLY THREEFOURTHS OF JAPANESE AUTO MAKERS ARE OPERATING PROFITABLY THESE DAYS DOWN FROM 95 FIVE YEARS AGO MOREOVER INDUSTRY EXPERTS SAY HONDA IS PERFECTLY CAPABLE OF REGAINING ITS US FOOTING IF IT SCORES A HIT WITH A REDESIGNED ACCORD ITS LONGTIME SALES HORSE DUE OUT THIS FALL IN JANUARY IT ALSO PLANS TO WADE FINALLY INTO THE THRIVING MARKET FOR SPORTUTILITY VEHICLES IT ALSO HAS A MINIVAN UNDER DESIGN STILL STATISTICS SHOW PLENTY OF REASON FOR CHRYSLER'S GLEE AND HONDA'S GLOOM UNIT SALES OF AMERICA'S NO 3 AUTOMAKER HAVE SOARED 269 SO FAR THIS YEAR FROM THE LIKE PERIOD A YEAR AGO AND ITS SHARE OF THE US PASSENGER CAR MARKET HAS JUMPED TO 10 THROUGH JULY 30 FROM 77 A YEAR EARLIER MEANWHILE SALES OF THE ACCORD ARE OFF 273 SO FAR THIS YEAR FROM 1992 LEVELS AND HONDA'S SHARE OF THE US PASSENGERCAR MARKET HAD SKIDDED 12 PERCENTAGE POINTS TO 78 BY JULY'S END FROM 9 A YEAR EARLIER THAT MEANS HONDA'S SHARE OF THE US CAR MARKET HAS SLIPPED BELOW CHRYSLER'S FOR THE FIRST TIME SINCE 1990 DESPITE WEAKENING SALES HONDA HAS RAISED PRICES TWICE SINCE FEBRUARY FURTHER PUTTING OFF SOME OF ITS LOYAL CUSTOMERS ALONG WITH THE HIGHER PRICES HAVE COME SECOND THOUGHTS ABOUT HONDA'S ONCEREVERED PRODUCT ACUMEN IN 1990 HONDA FINALLY GAVE ITS FAMILY BUYERS A STATION WAGON BUT SALES HAVE BEEN DULL IN PART BECAUSE OF THE POPULARITY OF MINIVANS AND IN PART BECAUSE RIVALS NOTABLY FORD MOTOR CO TOYOTA MOTOR CORP AND SWEDEN'S AB VOLVO OFFER WAGONS WITH A THIRD REARFACING SEAT THE FEATURE HAS PROVED WILDLY POPULAR WITH SUBURBAN CARPOOLERS WHO BUY THE BULK OF STATION WAGONS NO ONE FEELS THIS CHANGE IN FORTUNES MORE ACUTELY THAN THE MEN AND WOMEN ON THE FRONT LINE DEALERS MR MCDAVID FOR EXAMPLE REMEMBERS THE HEADY DAYS WHEN WE COULD SELL ALL THE HONDAS WE COULD GET OUR HANDS ON IN 1984 MCDAVID HONDA IN HOUSTON SOLD 3600 CARS MAKING IT THE NO 1 HONDA DEALERSHIP IN TEXAS WHILE MR MCDAVID'S DALLAS HONDA OUTLET SOLD 2500 CARS BUT LAST YEAR THE HOUSTON HONDA FRANCHISE FELL TO ONETHIRD OF ITS 1984 VOLUME WHILE THE DALLAS OUTLET SLIPPED TO 1800 VEHICLES MR MCDAVID SAYS BOTH DEALERSHIPS ARE PROFITABLE BUT THAT'S LARGELY BECAUSE OF THEIR BUSTLING PARTS AND SERVICES OPERATIONS FAR FROM BEING AN ANOMALY THE SALES DECLINES AT THE MCDAVID HONDA DEALERSHIPS ARE IN LINE WITH THE TREND THROUGHOUT HONDA'S 1000MEMBER US DEALER NETWORK INDUSTRY EXPERTS SAY AND THESE DAYS MR MCDAVID IS HAVING TO WORRY ABOUT SHEDDING EXCESS INVENTORY WHILE GRAPPLING WITH THE KIND OF HARD DECISIONS DOMESTIC DEALERS FACED IN THE 1980S HE HAS HAD TO LAY OFF STAFF FOR EXAMPLE HE HAS ALSO CUT ADVERTISING PUT MORE EMPHASIS ON TURNING PROFITS FROM USED CARS AND BEEFED UP PROGRAMS AIMED AT MAKING CUSTOMERS HAPPY HE EVEN QUIT SPONSORING LITTLE LEAGUE BASEBALL TEAMS AND THERE HAS BEEN ONE OTHER SOBERING ADJUSTMENT HIS SALES PEOPLE SINCE THE BEGINNING OF THE HONDA SLUMP IN 1991 HAVE HAD TO RESORT TO SELLING CARS FOR LESS THAN THE STICKER PRICE THAT IS A BIG COMEDOWN FROM THE DAYS WHEN HONDAS SOLD AT A PREMIUM OVER STICKER PRICE CUTTING BACK ISN'T MR MCDAVID'S STYLE NOW 51 HE STARTED SELLING CARS AT HIS FATHER'S OLDSMOBILE DEALERSHIP WHEN HE WAS JUST 16 TODAY HE OWNS THAT DEALERSHIP THE TWO HONDA STORES TWO ACURA DEALERSHIPS FOUR SATURN DEALERSHIPS AND ONE EACH FOR NISSAN SUZUKI BUICK PONTIAC AND GMC TRUCK IN THAT EMPIRE MR MCDAVID'S HONDA DEALERSHIPS USED TO BE THE CROWN JEWELS AND HE MADE SURE PEOPLE SAW THEM THAT WAY IN DALLAS A LAVISH CHANDELIER HANGS OVER THE SHOWROOM FLOOR ALONG THE WALL IS A MURAL PORTRAYING 200 YEARS OF TEXAS HISTORY INTERTWINED WITH MR MCDAVID'S FAMILY HISTORY HIS HUGE GLASSENCLOSED SECONDFLOOR OFFICE GIVES HIM A SWEEPING PANORAMA OF THE SHOWROOM BELOW BUT TODAY THE BRIGHTEST LIGHT IN MR MCDAVID'S CONSTELLATION INCREASINGLY COMES FROM SATURN THE THREEYEAROLD SMALL CAR FROM GENERAL MOTORS CORP DESPITE A RECENTLY ANNOUNCED RECALL OF SATURNS FOR A POTENTIAL ENGINEFIRE PROBLEM MR MCDAVID BELIEVES SATURN CAPTURES SOMETHING OF THE OLD HONDA SPIRIT WITH ITS EMPHASIS ON QUALITY AND ITS LOW NOHAGGLE PRICING MR MCDAVID HAS AT LEAST A TOE IN THE CHRYSLER REBOUND HE OWNS A CHRYSLER CORP JEEPEAGLE FRANCHISE BUT HE COULD ALSO KICK HIMSELF FOR DUMPING A CHRYSLERPLYMOUTH DEALERSHIP IN 1991 BECAUSE IT WAS LOSING MONEY IN 1992 CHRYSLER INTRODUCED THE RESTYLED LH FAMILY OF MIDSIZE SEDANS THAT HAS PROVED SO POPULAR I GOT OUT OF IT TOO SOON MR MCDAVID SAYS STATISTICS BEAR HIM OUT IN A DEALERSASSOCIATION SURVEY EARLIER THIS YEAR DEALERS RATED DOMESTIC FRANCHISES MORE VALUABLE THAN ASIAN FRANCHISES FOR THE FIRST TIME SINCE THE SURVEYS BEGAN IN 1985 JUST LAST YEAR EIGHT OF THE 10 MOST VALUED MARQUES WERE JAPANESE ONLY THREE JAPANESE MARQUES MADE DEALERS' TOP 10 THIS TIME NISSAN MOTOR CORP'S INFINITI DIVISION AND TOYOTA MOTOR'S LEXUS AND TOYOTA DIVISIONS SOME SEE THIS AS A CLEAR INDICATION THAT DETROIT'S COMPETITIVE RENAISSANCE HIGHER QUALITY AND BETTER STYLING IS PAYING OFF THE BIG THREE HAVE BECOME A MUCH MORE DIFFICULT CHALLENGE SAYS CHRISTOPHER CEDERGREN AN ANALYST AT AUTO PACIFIC GROUP INC IN SANTA ANA CALIF ACROSS TOWN MR WOLF COULD SECOND THAT THESE ARE HEADY TIMES AT RIVER OAKS CHRYSLERPLYMOUTH WHERE MR WOLF 28 HELPS RUN THE DEALERSHIP FOR HIS FATHERINLAW WHO OWNS IT ON ONE RECENT DAY THE SHOWROOM IS INDEED BUSTLING SALES PEOPLE HUSTLE TO ANSWER CUSTOMER QUERIES AND SEND PROSPECTIVE BUYERS OUT ON TEST DRIVES SALES HAVE REBOUNDED SO STRONGLY SINCE THE 1992 DEBUT OF THE LH SEDANS THAT THE DEALERSHIP WILL BUILD A NEW 2 MILLION FACILITY IN NOVEMBER IN MARCH RIVER OAKS WILL OPEN A JEEPEAGLE FRANCHISE THE DEALERSHIP HAS ADDED THREE SALESMEN SINCE THE END OF 1992 BRINGING ITS SALES STAFF TO 14 IN THE 1980S RIVER OAKS HAD TROUBLE ATTRACTING QUALIFIED SALESMEN BUT TODAY IT GETS A STEADY STREAM OF APPLICATIONS FROM THE INDUSTRY'S MOST EXPERIENCED CAR SELLERS AMONG RECENT HIRES WAS A 15YEAR VETERAN FROM A MERCEDESBENZ SHOP MR WOLF SAYS HIS CUSTOMERS HAVE CHANGED TOO IN THE 1980S CHRYSLER'S STATISTICS SHOWED THAT THE TYPICAL BUYER OF A NEW YORKER FIFTH AVENUE LUXURY CAR WAS A 66YEAROLD RETIREE TRADING IN ANOTHER CHRYSLER WE HAD PEOPLE WHO ONLY BOUGHT CHRYSLERS BECAUSE THEY LOVED LEE IACOCCA SAYS MR WOLF PEOPLE WERE ROOTING FOR THE UNDERDOG NOW CHRYSLERS SEEM TO BE APPEALING TO BUYERS ACROSS THE AGE SPECTRUM THE TYPICAL BUYER OF THE NEW CONCORDE MIDSIZE SEDAN IS UNDER 50 YEARS OLD AND COMPARISON SHOPS THE TOYOTA CAMRY AND HONDA ACCORD AS WELL AS LOWPRICED MODELS OF LEXUS AND ACURA WE'RE STARTING TO SEE A LOT MORE PEOPLE DRIVE UP TO THE DEALERSHIP IN IMPORT CARS A CHRYSLER SPOKESMAN SAYS BART HALE 32 AND A SELFEMPLOYED FINANCIAL ADVISER RECENTLY BOUGHT A PLYMOUTH VOYAGER MINIVAN FROM RIVER OAKS HE HAD CHECKED OUT THE TOYOTA PREVIA BUT SAYS HE DECIDED ON THE VOYAGER BECAUSE IT WAS 2000 CHEAPER AND OFFERED MORE FEATURES I LIKED THE PREVIA BUT IT WAS OVERPRICED HE SAYS IN THE 1993 FISCAL YEAR ENDED JUNE 30 RIVER OAKS SOLD 1576 VEHICLES NOT INCLUDING FLEET SALES UP 417 FROM 1112 SIX YEARS EARLIER CHRYSLER'S RALLY HAS GIVEN MR WOLF ONE THING HE RELISHES ESPECIALLY RESPECT HE REMEMBERS ATTENDING SOCIAL AND FAMILY GATHERINGS IN THE 1980S WITH HIS BROTHER A FORD DEALER PEOPLE WOULD BOMBARD HIS BROTHER WITH QUESTIONS THEY IGNORED ME MR WOLF SAYS TODAY THE OPPOSITE IS TRUE NOW THEY WANT TO KNOW ABOUT CHRYSLER PRODUCTS THE CHRYSLER SURGE HAS BEEN GOOD FOR HIM IN A MORE MATERIAL WAY MR WOLF IS HAVING A HOUSE BUILT IN A TONY SECTION OF HOUSTON RIGHT NEXT DOOR TO THE LARGEST HONDA DEALER IN TEXAS 9308190040 930819 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG WHAT IF EVERY TELEPHONE COMPANY USED A DIFFERENT SYSTEM OF PHONE NUMBERS SOME WITH MORE OR FEWER DIGITS OTHERS MIXING LETTERS AND NUMBERS AND ODD SYMBOLS AND WHAT IF YOU HAD TO DIAL A DIFFERENT ACCESS NUMBER TO CALL USERS OF EACH COMPANY'S SYSTEM THE TELEPHONE SYSTEM WOULD BE EVEN MORE UNWIELDY THAN MOST OF US THINK IT HAS BECOME IN RECENT YEARS EVERY BUSINESS AND INDIVIDUAL WOULD HAVE TO CONSIDER EITHER JOINING MULTIPLE PHONE SYSTEMS AND MASTERING SEVERAL ARCANE NUMBERING SCHEMES OR CALLING ONLY SUBSCRIBERS THAT ALSO USE THEIR BASE COMPANY YET THIS CLUMSY SCENARIO APPROXIMATES THE COMMERCIAL ELECTRONICMAIL SYSTEM TODAY THE ONLY EMAIL ALTERNATIVE FOR MILLIONS OF SMALL BUSINESSES AND INDIVIDUALS WHO LACK THE KIND OF INHOUSE ELECTRONIC MAIL COMMON IN LARGE ORGANIZATIONS THESE PEOPLE MUST OPEN ACCOUNTS WITH ONE OR MORE SEPARATE EMAIL PROVIDERS SUCH AS AT&T MAIL MCI MAIL AND COMPUSERVE EACH HAS ITS OWN INCOMPATIBLE ADDRESSING SCHEME AND DIFFERENT COMMANDS FOR SENDING AND RETRIEVING MESSAGES EACH HAS ITS OWN ACCESS NUMBER AND A SEPARATE SUBSCRIBER LISTING EACH HAS ITS OWN PROPRIETARY SOFTWARE FOR AUTOMATING EMAIL OPERATIONS IT'S POSSIBLE TO CALL MOST OF THEM USING A SINGLE GENERIC COMMUNICATIONS PROGRAM IF YOU'RE A SKILLED COMPUTER USER BUT THESE DON'T WORK FOR EVERY SERVICE AND THEY OFFER LESS AUTOMATION THAN THE SERVICES' OWN CUSTOM SOFTWARE AND THERE IS A WAY TO SEND MESSAGES FROM ONE SERVICE TO USERS ON ANOTHER ONE IF YOU KNOW THEIR ADDRESS BY THE LOOSE ALLIANCE OF COMPUTER NETWORKS KNOWN AS THE INTERNET TO WHICH MOST OF THE SYSTEMS ARE LINKED BUT THE COMMANDS TO DO THIS CAN BE TRICKY AND RIGID SO MOST USERS OF COMMERCIAL EMAIL EITHER RESTRICT THEIR MESSAGING TO A SINGLE SYSTEM OR JOIN SEVERAL OF THEM AND STRUGGLE WITH MULTIPLE SOFTWARE PROGRAMS NOW HOWEVER CONNECT SOFTWARE A SMALL COMPANY IN REDMOND WASH 8002349497 HAS INTRODUCED AN INEXPENSIVE EASYTOUSE SOFTWARE PACKAGE THAT CONSOLIDATES AND AUTOMATES ACCESS TO TWO OF THE BIGGEST SYSTEMS MCI MAIL AND COMPUSERVE AND MAKES IT EASY TO USE THE INTERNET TO REACH PEOPLE ON MANY OTHER SYSTEMS EVEN THE INTERNAL EMAIL SYSTEMS OF PRIVATE COMPANIES AND OTHER ORGANIZATIONS WITH LINKS TO THE INTERNET THE 79 PROGRAM CALLED EMAIL CONNECTION WORKS ON IBMCOMPATIBLE PCS RUNNING MICROSOFT'S WINDOWS SYSTEM AND HAS A CLEAN GRAPHICAL INTERFACE IT BILLS ITSELF AS THE UNIVERSAL EMAIL INTERFACE BECAUSE IT REPLACES THE PROPRIETARY SOFTWARE FROM MCI AND COMPUSERVE AND MAINTAINS A SINGLE ADDRESS BOOK AND FILING SYSTEM FOR MESSAGES RECEIVED AND SENT ON THE TWO SYSTEMS THE PROGRAM ALSO CAN BE USED TO RECEIVE AND SEND INTERNAL EMAIL OVER CORPORATE NETWORKS BASED ON EITHER NOVELL OR MICROSOFT NETWORKING SYSTEMS I'VE BEEN USING EMAIL CONNECTION EVERY DAY FOR SEVERAL MONTHS STARTING WITH PRERELEASE VERSIONS AND HAVE FOUND IT TO BE RELIABLE EASY TO USE AND EFFICIENT IT HAS A FEW FLAWS BUT GETS THE JOB DONE BETTER THAN ANY OTHER COMMERCIAL EMAIL PACKAGE I'VE SEEN INSTALLING EMAIL CONNECTION IS FAIRLY PAINLESS YOU CLICK ON AN ONSCREEN BUTTON MARKED BY A COLORFUL MCI OR COMPUSERVE LOGO AND ENTER ONE TIME ONLY YOUR ACCOUNT AND PASSWORD INFORMATION FOR THE SERVICES AND THE PHONE NUMBERS YOU USE TO REACH THEM A SEPARATE SCREEN LETS YOU CONFIGURE THE SOFTWARE FOR YOUR PC AND MODEM AFTER THAT A SINGLE CLICK ORDERS THE PROGRAM TO DIAL ONE OR BOTH SERVICES AUTOMATICALLY RETRIEVE ANY MESSAGES WAITING FOR YOU THERE AND TRANSMIT ANY MESSAGES YOU'VE COMPOSED OFFLINE IN THE PROGRAM'S VERY NICE BUILTIN EDITOR YOU CAN ALSO ORDER EMAIL CONNECTION TO AUTOMATICALLY DIAL IN AND CHECK YOUR MAIL HOURLY DAILY OR ON NEARLY ANY OTHER SCHEDULE YOU CHOOSE THE BUILTIN ADDRESS BOOK IS VERY WELL DONE ADDRESSES CAN BE ENTERED MANUALLY OR THE PROGRAM CAN BE INSTRUCTED TO AUTOMATICALLY ADD THE SENDER'S ADDRESS FROM ANY MESSAGE YOU GET MCI AND COMPUSERVE ADDRESSES ARE TREATED IN AN IDENTICAL MANNER AND YOU CAN ADD ADDRESSES FOR PEOPLE ON OTHER SYSTEMS SUCH AS AMERICA ONLINE APPLELINK OR PRIVATE CORPORATE NETWORKS SO LONG AS THEY ARE LINKED TO MCI OR COMPUSERVE VIA THE INTERNET THE PROGRAM AUTOMATICALLY FILLS IN THE INTERNET CODES FOR POPULAR SYSTEMS EMAIL CONNECTION IS EXCELLENT AT ARCHIVING AND ORGANIZING YOUR MESSAGES YOU CAN SET UP YOUR OWN CUSTOM FOLDERS TO SORT MESSAGES FOR LATER REFERENCE THE PROGRAM WILL EVEN LET YOU SET UP RULES BY WHICH IT WILL AUTOMATICALLY DO THE SORTING FOR YOU BASED ON THE IDENTITY OF THE SENDER OR A WORD OR PHRASE IN THE MESSAGE'S HEADING THE PROGRAM HAS A FEW WEAKNESSES IT LACKS A CONNECTION TO THE LARGE AT&T EMAIL SERVICE EVEN BY AN INDIRECT INTERNET LINK IT CAN BE SLOW TO LAUNCH AND TO SWITCH SCREEN DISPLAYS THOUGH IT IS SPEEDY AT MESSAGE RETRIEVAL IT CAN'T SEND AND RECEIVE MESSAGES WHILE YOU SIMULTANEOUSLY PERFORM OTHER FUNCTIONS AND THERE'S NO WAY TO MERGE OR SYNCHRONIZE ADDRESS BOOKS STORED ON TWO DIFFERENT COMPUTERS BUT CONNECT SAYS IT PLANS TO REMEDY THESE PROBLEMS IN A FUTURE REVISION AND IT'S ALREADY WORKING ON ADDING MORE EMAIL SYSTEMS A MACINTOSH VERSION OF THE PROGRAM IS ALSO PLANNED FOR NEXT YEAR SOMEDAY MAYBE EMAIL SERVICES WILL BE AS INTERCHANGEABLE AND COMPATIBLE AS THE REGULAR TELEPHONE COMPANIES UNTIL THEN EMAIL CONNECTION IS A GOOD WAY TO BRING SOME ORDER TO THE CHAOS 9308190039 930819 BUSINESS BRIEF VALLEY SYSTEMS INC CONCERN SAYS LOSS WIDENED IN QUARTER AND FISCAL 1993 IN THE YEAREARLIER PERIOD THE CANAL FULTON OHIO INDUSTRIALCLEANING COMPANY HAD A LOSS OF 15 MILLION ON SALES OF 69 MILLION DENNIS D SHEETS CHIEF FINANCIAL OFFICER BLAMED THE LOSS ON THE COMPANY'S STRUCTURE SAYING PREVIOUS MANAGEMENT DROVE UP COSTS BY ACQUIRING ADDITIONAL EQUIPMENT AND OPENING NEW BRANCHES VALLEY SYSTEMS ALSO EXPECTS A LOSS OF MORE THAN 145 MILLION FOR THE YEAR ON SALES OF 29 MILLION IT HAD A LOSS OF 2 MILLION ON SALES OF 262 MILLION IN FISCAL 1992 THE COMPANY SAID THE EXPECTED LOSS FOR THE YEAR IS DUE IN PART TO EXPENSES OF 35 MILLION RELATED TO THE TENTATIVE SETTLEMENT OF ONE CLASSACTION SHAREHOLDER LAWSUIT AND TO THE DEFENSE OF THAT AND ANOTHER DERIVATIVE SUIT THE LAWSUITS STEM FROM ACCOUNTING PROBLEMS DISCOVERED LAST YEAR WHICH CAUSED THE COMPANY'S STOCK TO PLUNGE 9308190038 930819 BUSINESS BRIEF LUFTHANSA AG TALKS TOWARD COOPERATION ARE HELD WITH AUSTRIAN AIR EXECUTIVES OF LUFTHANSA AG AND AUSTRIAN AIRLINES AG MET TO DISCUSS CLOSE COOPERATION BETWEEN THE CARRIERS LUFTHANSA SAID THE EXECUTIVES DEBATED THE DETAILS OF A DRAFT PROPOSAL BY LUFTHANSA THAT THE TWO COOPERATE IN AREAS INCLUDING FLIGHT OPERATIONS MAINTENANCE MARKETING AND PASSENGER SERVICES THE GERMAN CARRIER SAID LUFTHANSA SAID THE TALKS STEM FROM ITS STRATEGY OF SEEKING TO COLLABORATE WITH OTHER CARRIERS IN ALL BUSINESS AREAS LUFTHANSA 52 CONTROLLED BY THE GERMAN GOVERNMENT HAS SUCH AGREEMENTS WITH MORE THAN 20 AIRLINES WORLDWIDE IT ADDED THAT IT PURSUES FINANCIAL STAKES OR EQUITY SWAPS IN SUCH ARRANGEMENTS ONLY AS EXCEPTIONS THE COMPANY EXPRESSED ITS INTEREST IN CLOSE COOPERATION WITH AUA AUSTRIAN AIRLINES SAID JUERGEN WEBER LUFTHANSA'S CHAIRMAN AND ASKED AUA TO REACH A DECISION ON THE LUFTHANSA OFFER BY EARLY SEPTEMBER 9308190037 930819 MARKETING & MEDIA NEWS CORP'S FOX TO BUY STATION LOS ANGELES FOX TELEVISION STATIONS INC SAID IT WILL ACQUIRE WGBS CHANNEL 57 PHILADELPHIA FROM COMBINED COMMUNICATIONS CORP CARLSBAD CALIF TERMS WEREN'T DISCLOSED FOX SAID THE PURCHASE OF THE INDEPENDENT UHF STATION IS SUBJECT TO REGULATORY APPROVAL FOX TELEVISION A UNIT OF NEWS CORP CURRENTLY OWNS EIGHT STATIONS 9308190036 930819 MEDICINE GENE THERAPY FOR DYSTROPHY SHOWS PROMISE BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL A GENE THERAPY TECHNIQUE CURED MICE OF COMMON FORMS OF MUSCULAR DYSTROPHY ACCORDING TO UNIVERSITY OF MICHIGAN RESEARCHERS BUT THE RESEARCHERS CAUTION IT WILL BE YEARS BEFORE THE TREATMENT CAN BE TRIED IN HUMANS GENE THERAPY IS AN EXPERIMENTAL PROCEDURE TO CORRECT A MEDICAL DISORDER BY REPLACING OR COUNTERACTING A FAULTY GENE GENE THERAPY APPROACHES ARE BEING TESTED TO TREAT A WIDE VARIETY OF GENETIC DISEASES SUCH AS CYSTIC FIBROSIS HEMOPHILIA IMMUNE SYSTEM DISORDERS AND GAUCHER'S DISEASE PREVIOUS ATTEMPTS AT USING GENE THERAPY TO TREAT MUSCULAR DYSTROPHY DEMONSTRATED ITS POTENTIAL BUT PRODUCED ONLY LIMITED RESULTS A STUDY REPORTED IN THIS WEEK'S NATURE HOWEVER PROVIDED STRONG EVIDENCE OF GENE THERAPY'S ABILITY TO CURE DISEASE IN THIS CASE DUCHENNE AND BECKER MUSCULAR DYSTROPHIES WE NOW HAVE CONFIDENCE WHICH WE LACKED UP UNTIL THIS DISCOVERY THAT THIS RESEARCH WILL PAY OFF SAID DONALD WOOD DIRECTOR OF SCIENCE TECHNOLOGY FOR THE MUSCULAR DYSTROPHY ASSOCIATION ENCOURAGED BY THE LATEST RESULTS THE ASSOCIATION WILL FOCUS ITS RESEARCH EFFORTS ON THE GENE THERAPY APPROACH DR WOOD SAID THE FINDINGS WILL BE HIGHLIGHTED ON THE ASSOCIATION'S ANNUAL FUNDRAISING TELETHON NEXT MONTH DR WOOD SAID THE GROUP SPENDS ABOUT 20 MILLION A YEAR ON MUSCULAR DYSTROPHY RESEARCH AND PARTIALLY FUNDED THE UNIVERSITY OF MICHIGAN STUDY PUBLISHED IN TODAY'S NATURE JOURNAL GOVERNMENT AND NONPROFIT FOUNDATIONS ALSO PROVIDED FUNDING DUCHENNE MUSCULAR DYSTROPHY THE MOST COMMON FORM OF CHILDHOOD MUSCULAR DYSTROPHY AFFECTS ONE OUT OF EVERY 3500 MALES FEMALES CAN CARRY THE DISEASE BUT RARELY DEVELOP SYMPTOMS THE DISEASE IS CAUSED BY A DEFECT IN THE GENE THAT MAKES DYSTROPHIN A CRITICAL PROTEIN NECESSARY TO KEEP MUSCLE TISSUE FROM BREAKING DOWN THE DEFECTIVE GENE'S FAILURE TO PRODUCE DYSTROPHIN CAUSES MUSCLES TO PROGRESSIVELY WEAKEN LEADING TO PARALYSIS AND THE PATIENT'S DEATH FROM HEART OR RESPIRATORY FAILURE USUALLY BY HIS MID20S A MILDER FORM OF THE DISEASE BECKER MUSCULAR DYSTROPHY RESULTS FROM DIFFERENT DEFECTS IN THE SAME GENE WHICH STILL IS ABLE TO PRODUCE SOME DYSTROPHIN ABOUT 350000 PATIENTS WORLDWIDE HAVE DUCHENNE AND BECKER MUSCULAR DYSTROPHIES A GENE THERAPY TECHNIQUE FOR MUSCULAR DYSTROPHY REPORTED TWO YEARS AGO SHOWED THAT A CORRECTED FORM OF THE DEFECTIVE GENE INJECTED INTO LEG AND HEART MUSCLES OF MICE PRODUCED DYSTROPHIN BUT IT WORKED ONLY IN MUSCLE TISSUE NEAR THE INJECTION SITE ANY VIABLE TREATMENT FOR THE DISEASE NEEDS TO REACH ALL MUSCLES IN THE BODY THE DYSTROPHIN GENE IS THE LARGESTKNOWN GENE TOO LARGE IN FACT TO WORK WITH IN THE LABORATORY IN THE UNIVERSITY OF MICHIGAN STUDY RESEARCHERS CONSTRUCTED A MINIATURE VERSION OF THE GENE MADE UP OF JUST THE PORTIONS RESPONSIBLE FOR DYSTROPHIN PRODUCTION IN DOING SO HOWEVER THEY LOST THE GENETIC INFORMATION THAT CONTROLS WHEN WHERE AND HOW MUCH PROTEIN IS PRODUCED THESE SWITCHES FOR EXAMPLE MAKE SURE THE PROTEIN IS PRODUCED ONLY IN THE SPECIFIC MUSCLE CELLS WHERE IT IS NEEDED AND ISN'T PRODUCED IN OTHER CELLS SUCH AS IN THE LIVER OR SKIN RESEARCHERS REPLACED THE LOST SWITCHES BY SPLICING ONTO THE MINIATURE GENES SIMILAR CONTROLLING MECHANISMS FOUND IN OTHER GENES THEY THEN INJECTED COPIES OF THE NEW GENE INTO FERTILIZED EGGS OF MICE THAT HAD THE NATURALLY OCCURRING DEFECTIVE DYSTROPHIN GENE AS THE EMBRYONIC CELLS MULTIPLIED SO DID THE CORRECTED GENE SPREADING THE GENETIC INFORMATION THROUGHOUT EVERY CELL IN THE BODY AFTER BIRTH THE MICE GREW UP DISEASEFREE THE RESEARCHERS TESTED STRIPS OF DIAPHRAGM MUSCLE WHICH CONTROLS BREATHING FROM NORMAL MICE UNTREATED MICE WITH THE GENETIC DEFECT AND TREATED MICE WITH BOTH THE DEFECTIVE AND CORRECTED GENE THE DIAPHRAGM MUSCLES OF NORMAL AND TREATED MICE FUNCTIONED SIMILARLY BUT THE UNTREATED MICE HAD SEVERELY DAMAGED AND IMPAIRED DIAPHRAGM MUSCLES THE RESEARCHERS ALSO MEASURED BLOOD LEVELS OF AN ENZYME CREATINE KINASE WHICH HELPS MAINTAIN MUSCLE ENERGY LEVELS THE ENZYME IS NORMALLY PRESENT ONLY IN TRACE AMOUNTS IN THE BLOOD BUT IN MUSCULAR DYSTROPHY PATIENTS IT IS RELEASED INTO THE BLOODSTREAM AS MUSCLE TISSUE BREAKS DOWN THERE WEREN'T ANY SIGNIFICANT DIFFERENCES IN CREATINE KINASE BLOOD LEVELS FOUND IN THE NORMAL AND TREATED MICE BUT THE UNTREATED MICE HAD 10 TIMES HIGHER LEVELS THE CORRECTED GENE PRODUCED AS MUCH AS 50 TIMES THE NORMAL AMOUNT OF DYSTROPHIN BUT THE TREATED MICE DIDN'T EXHIBIT ANY SIDE EFFECTS WE WERE UNABLE TO FIND ANYTHING REMOTELY WRONG WITH THESE MICE SAID JEFFREY S CHAMBERLAIN OF THE UNIVERSITY OF MICHIGAN AND LEAD RESEARCHER IN THE STUDY THE STUDY SHOWS THAT IF SCIENTISTS CAN GET A VERSION OF THE CORRECTED GENE INTO A PATIENT'S MUSCLE IT WILL CORRECT THE SYMPTOMS OF THE DISEASE DR CHAMBERLAIN SAID BUT HE WARNED THAT THE METHOD USED IN MICE IS TOO CRUDE TO USE IN HUMAN EMBRYOS INSTEAD RESEARCHERS ARE SEARCHING FOR VIRUSES THAT CAN CARRY THE CORRECTED GENE INTO EVERY MUSCLE TISSUE THIS STUDY IS A BIG STEP BUT STILL JUST THE FIRST STEP DR CHAMBERLAIN SAID 9308190035 930819 OTC FOCUS STOCKS HIT THIRDSTRAIGHT RECORD CLOSE ON SURGE BY MEDICAL AND SMALLER ISSUES BY SARA CALIAN AND CAITLIN MOLLISON STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET RALLIED TO A THIRD CONSECUTIVE RECORD HIGH PROPELLED BY SMALLER STOCKS AND MEDICALRELATED ISSUES THE NASDAQ COMPOSITE INDEX JUMPED 382 OR 052 TO 73483 ADVANCING ISSUES OUTNUMBERED DECLINERS 1629 TO 1258 ON TOTAL VOLUME OF 3318 MILLION SHARES NEARING ITS RECORD VOLUME OF 3432 MILLION ON MAY 20 SMALL STOCKS STARTED THE SUMMER RALLY IN JUNE ANALYSTS SAID THE RUSSELL 2000 INDEX A MEASUREMENT OF 2000 OF THE SMALLEST STOCKS ON THE NEW YORK AND AMERICAN STOCK EXCHANGES AND THE NASDAQ MARKET BEGAN TO HIT NEW HIGHS A COUPLE MONTHS AGO AND THEN AGAIN IN JULY YESTERDAY THE INDEX HIT 24282 A SECOND CONSECUTIVE RECORD GIVING IT A 99 GAIN FOR THE YEAR A LOT OF THE SMALLER COMPANIES HAVE BEEN DOING VERY WELL ALL SUMMER AND THAT'S FILTERING INTO BIGGER COMPANIES SAID CLAUDIA MOTT A MARKET STRATEGIST AT PRUDENTIAL SECURITIES AFTER BREAKING NEW GROUND IN MIDJULY THE NASDAQ COMPOSITE INDEX HAS BEEN REACHING HIGHER LEVELS FOR THE PAST MONTH THE RECENT LEAP IS PROPELLED BY NEW DEVELOPMENTS IN TELECOMMUNICATIONS STOCKS FOLLOWING THE ANNOUNCEMENT OF A PLANNED MERGER OF AMERICAN TELEPHONE & TELEGRAPH WITH MCCAW CELLULAR COMMUNICATIONS TECHNOLOGY STOCKS WHICH WERE LAGGING AT THE BEGINNING OF THE SUMMER ALSO HAVE PICKED UP THE MARKET MIGHT BLOW OFF A LITTLE STEAM BUT I DON'T THINK THERE IS ANY NEED OR ANY REASON FOR THINGS TO CRASH DRAMATICALLY MS MOTT SAID THE GAINS ARE MODEST FOR THE VALUE OF THE GROWTH STOCKS RIGHT NOW THE NASDAQ IS ONLY UP ABOUT 8 1/2 FOR THE YEAR GEORGE CONSTANTINE A TECHNICAL ANALYST WITH MERRILL LYNCH SAID THE NASDAQ COMPOSITE COULD EASILY REACH 750 AND MIGHT MOVE FURTHER TOWARD 800 BEFORE IT HAS A SETBACK I DON'T THINK THERE IS ENOUGH POWER TO GO THAT MUCH FURTHER PAST 800 HE SAID A LOT OF PEOPLE ARE SWITCHING INTO STOCKS THAT HAVE BEEN DOWN AND SELLING OFF THOSE THAT HAVE HAD BIG RISES THIS WEEK BIOTECHNOLOGY AND HEALTH CARE STOCKS HAVE BEEN POSTING SOLID GAINS WITHOUT ANY MAJOR NEWS ANNOUNCEMENTS OTHER THAN ONE OR TWO ANALYSTS UPGRADING THEIR INVESTMENT RATINGS GENZYME JUMPED 1 5/8 TO 34 5/8 BIOGEN ROSE 3/4 TO 31 CHIRON POPPED UP 1 1/4 TO 62 AND AMGEN CLIMBED 7/8 TO 35 5/8 BUT TECHNOLOGY AND SOME HEALTHCARE GROUP STOCKS WERE THE STARS TODAY INTEL GAINED 1/2 TO 65 1/2 AND WAS THE DAY'S MOST ACTIVE ISSUE SYNOPSYS ADDED 1 TO 50 AUTODESK ROSE 1 3/4 TO 43 AND KOMAG ROSE 1 3/8 TO 23 3/4 SHARPLY HIGHER FISCAL FIRSTQUARTER EARNINGS SENT NEWBRIDGE NETWORKS UP 6 TO 66 1/8 THE COMPANY REPORTED AFTER THE CLOSE YESTERDAY THAT NET INCOME FOR THE PERIOD ROSE TO 41 CANADIAN CENTS A SHARE FROM NINE CANADIAN CENTS A YEAR EARLIER ON THE DOWNSIDE AMONG TECHNOLOGY STOCKS SILICON VALLEY OF SAN JOSE CALIF SLIPPED 1 3/4 TO 11 1/8 HAMBRECHT & QUIST ANALYST MARK FITZGERALD CUT HIS RATING TO SELL FROM HOLD THE ANALYST SAID THE COMPANY LOST AN ACCOUNT WITH MOTOROLA THAT HE ESTIMATED AT 15 MILLION THE COMPANY WASN'T AVAILABLE FOR COMMENT IN THE MEDICALRELATED GROUP IMMUNEX JUMPED 1 1/8 TO 21 7/8 IN PARTICULAR HEALTHMAINTENANCE ORGANIZATIONS FIRMED TAKECARE LEAPED 2 TO 41 1/2 OXFORD HEALTH PLANS ZOOMED UP 3 1/4 TO 65 1/2 AND US HEALTHCARE MOVED 1 HIGHER TO 47 THE COMMUNICATIONS GROUP COOLED OFF AFTER SIMMERING FOR SEVERAL SESSIONS MCI COMMUNICATIONS LOST 1 TO 27 3/8 MCCAW DROPPED 1 1/4 TO 54 3/4 AND LIN BROADCASTING SLIPPED 1 1/2 TO 119 1/2 PRUDENTIAL SECURITIES UPGRADED MCCAW OF KIRKLAND WASH TO BUY FROM HOLD THE GROUP HAS BEEN HIGHER SINCE THE NEWS ON MONDAY OF MCCAW'S 126 BILLION MERGER WITH AT&T CCOR ELECTRONICS BASED IN STATE COLLEGE PA ROSE 1 1/8 TO 13 1/2 AFTER SAYING IT EXPECTS TO REPORT RECORD REVENUE FOR FISCAL 1994 ABOVE ITS 1990 HIGH OF 603 MILLION THE ELECTRONIC EQUIPMENT MAKER REPORTED THAT IT EARNED 18 CENTS A SHARE FOR THE LATEST FISCAL FOURTH QUARTER COMPARED WITH 19 CENTS A YEAR EARLIER MR COFFEE BASED IN BEDFORD HEIGHTS OHIO SURGED 1 TO 8 3/4 FOLLOWING NEWS THAT OPPENHEIMER & CO ANALYST GARY CHIN INITIATED COVERAGE BY ADDING THE COMPANY TO THE RECOMMENDED LIST LIPOSOME TECHNOLOGY A MENLO PARK CALIF DEVELOPER OF LIPIDBASED DELIVERY SYSTEMS ADVANCED 1 TO 8 1/4 AFTER OPPENHEIMER ADDED THE COMPANY TO ITS RECOMMENDED LIST LIPOSOME TECHNOLOGY ANNOUNCED YESTERDAY THAT ZENECA OF THE UNITED KINGDOM WILL DISTRIBUTE ITS ANTIFUNGAL DRUG AMPHOCIL IN EUROPE ZENECA POPPED UP 1 3/8 TO 31 1/4 ON THE NEW YORK STOCK EXCHANGE IMPERIAL CREDIT INDUSTRIES LOST GROUND ON A DOWNGRADE FALLING 1 TO 15 1/4 ALEX BROWN CUT ITS RATING ON THE SANTA ANA HEIGHTS CALIF MORTGAGE BANKER TO SOURCE OF FUNDS FROM NEUTRAL SY JACOBS AN ANALYST AT THE FIRM CITED THE HIGH VALUATION PLACED ON THE COMPANY'S SHARES DESPITE A POOR FIRSTHALF PERFORMANCE AND DISAPPOINTING LOAN ORIGINATION VOLUMES A PAINEWEBBER DOWNGRADE TO NEUTRAL FROM ATTRACTIVE PUSHED PROVIDENTIAL 7/8 LOWER TO 7 5/8 THE BROKERAGE FIRM RADICALLY REDUCED ITS 1993 EARNINGS ESTIMATE FOR THE SAN FRANCISCO SELLER OF REVERSE MORTGAGE LOANS TO A LOSS OF 190 A SHARE FROM EARNINGS OF 25 CENTS 9308190034 930819 WEDNESDAY'S MARKETS INDUSTRIALS CLIMB 1788 TO TOP 3600 SLIDING INTEREST RATES PROPEL STOCK PRICES 30YEAR BOND SOARS BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL PLUNGING LONGTERM INTEREST RATES IGNITED A ROBUST STOCKMARKET RALLY THAT CATAPULTED THE DOW JONES INDUSTRIAL AVERAGE ABOVE THE 3600 LEVEL TO A RECORD THE DOLLAR WAS MIXED THE DOW INDUSTRIALS CLIMBED 1788 POINTS TO 360486 STANDARD & POOR'S 500STOCK INDEX ROSE 291 TO 45604 JUST SHY OF ITS RECORD OF 45633 WHICH IT SURPASSED AT INTERVALS BUT COULDN'T SUSTAIN THE NASDAQ COMPOSITE INDEX ADVANCED 382 TO 73483 ITS THIRD CONSECUTIVE HIGH ANALYSTS SAID THE BONDMARKET RALLY CONTINUES TO FEED OFF THE WEAK ECONOMY AND LOW INFLATION WHILE PRICES FOR SECURITIES OF LONG AND SHORT MATURITIES ALL ROSE TRADERS MOST EAGERLY GRABBED UP THE TREASURY'S BENCHMARK 30YEAR BOND THE LONG BOND SOARED 3/4 POINT OR 750 FOR EACH 1000 FACE AMOUNT WITH THE YIELD SINKING TO 625 THE LOWEST LEVEL SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF 30YEAR BONDS IN 1977 AS LONGTERM INTEREST RATES FALL EVER LOWER ANALYSTS ARE FORCED TO REVISE THEIR ESTIMATES ON WHAT THE LOW POINT WILL BE MICKEY D LEVY CHIEF FINANCIAL ECONOMIST AT NATIONSBANK NOW THINKS RATES CAN GO AS LOW AS 6 BUT THE KEY POINT HE SAYS IS IF RATES GO LOWER WILL THEY STAY LOW OR START MOVING BACK UP GIVEN THE WEAK ECONOMY FAVORABLE INFLATION TRENDS AND RECESSIONARY CONDITIONS OVERSEAS I DON'T SEE ANY FUNDAMENTAL REASONS FOR RATES TO GO BACK UP IN A HURRY SINKING INTEREST RATES HELPED PROPEL STOCK PRICES HIGHER WITH CONSUMERGROWTH SHARES LEADING THE CHARGE FOR THE PAST FEW DAYS INVESTORS HAVE FLOCKED BACK INTO BATTERED FOOD DRUG AND TOBACCO STOCKS AFTER A LONG LOVE AFFAIR WITH ECONOMICALLY SENSITIVE ISSUES THE MORGAN STANLEY CONSUMER INDEX WAS UP 451 TO 18994 WHILE THE CYCLICAL INDEX SLIPPED 054 TO 28075 IT'S ANOTHER SECTOR ROTATION MR LEVY SAID WE'VE SEEN A LOT OF THEM THIS YEAR INVESTORS WERE FURTHER ENCOURAGED BY THE PROSPECT OF LOWER INTEREST RATES IN EUROPE WHERE STOCK PRICES ALSO RALLIED THE BRITISH STOCK MARKET JUMPED 16 TO A RECORD AND THE GERMAN MARKET SHOT UP 13 TO ITS HIGHEST LEVEL IN THREE YEARS ELSEWHERE IN EUROPE FRENCH SHARES ROSE 11 ITALIAN 18 AUSTRIAN 14 SPANISH 13 SWEDISH 29 AND FINNISH 29 ANALYSTS NOTED THAT AMERICAN INVESTORS ARE SHOWING INCREASING INTEREST IN EUROPEAN STOCKS US INSTITUTIONAL INVESTORS HAVE MADE A DECISION TO ALLOCATE MORE MONEY TO EUROPEAN EQUITIES SAID PATRICK SHIELDS AN EQUITY ANALYST AT NATWEST MARKETS IN LONDON HE ADDED THAT THE LOW YIELDS ON US BONDS AND THE PRICEY LEVEL OF THE US STOCKS WERE PROMPTING AMERICAN MONEY MANGERS TO SCOUR THE WORLD FOR ATTRACTIVE OPPORTUNITIES WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 060 TO 11278 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 3092 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1263 ISSUES ROSE AND 772 FELL THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16800 MARKS AND 10160 YEN COMPARED WITH 16931 MARKS AND 10110 YEN TUESDAY 9308190033 930819 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AMERCO THE HOLDING COMPANY FOR UHAUL INTERNATIONAL INC A SHELF OFFERING FOR UP TO 600 MILLION OF DEBT SECURITIES AND PREFERRED STOCK CHECKMATE ELECTRONICS INC AN OFFERING OF TWO MILLION COMMON SHARES FEDERAL EXPRESS CORP A SHELF OFFERING OF 2336 MILLION OF EQUIPMENT TRUST AND PASSTHROUGH CERTIFICATES INTERNATIONAL SEMITECH MICROELECTRONICS INC AN OFFERING OF 300 MILLION OF SENIOR SECURED DISCOUNT NOTES DUE 2003 VIA KIDDER PEABODY & CO KIMCO REALTY CORP A SHELF OFFERING FOR UP TO 350 MILLION OF DEBT SECURITIES PREFERRED STOCK AND COMMON STOCK METHANEX CORP AN OFFERING OF 300 MILLION OF SENIOR SECURED SECOND PRIORITY NOTES DUE 2001 VIA FIRST BOSTON CORP AND GOLDMAN SACHS & CO 9308190032 930819 BUSINESS BRIEF DUN & BRADSTREET CORP COMPANY PLANS VENTURE WITH A EUROPEAN BANK DUN & BRADSTREET CORP NEW YORK SAID IT PLANS TO SET UP A VENTURE WITH THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT TO PROVIDE BUSINESS AND CREDIT INFORMATION SERVICES IN CENTRAL AND EASTERN EUROPE SUCH INFORMATION IS NEEDED BY COMPANIES ENGAGED IN INTERNATIONAL TRADE INVESTORS AND PROVIDERS OF FINANCIAL SERVICES D&B SAID THE VENTURE ALSO WILL PROVIDE EDUCATION AND TRAINING IN MARKETING AND CREDIT MANAGEMENT TO HELP COMPANIES IN THE REGION GROW AND REDUCE THEIR CREDIT RISK D&B A PROVIDER OF BUSINESS INFORMATION AND RELATED SERVICES SAID THE VENTURE WILL BE SET UP BY ITS DUN & BRADSTREET INFORMATION SERVICES DIVISION THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT WAS ESTABLISHED IN 1991 TO ASSIST CENTRAL AND EASTERN EUROPEAN COUNTRIES MAKE THE TRANSITION TO MARKETDRIVEN ECONOMIES ITS MEMBERS INCLUDE 57 COUNTRIES THE EUROPEAN ECONOMIC COMMUNITY AND THE EUROPEAN INVESTMENT BANK 9308190031 930819 ROBERT PRECHTER SEES HIS 3600 ON THE DOW BUT 6 YEARS LATE BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL SO IT TURNS OUT ROBERT PRECHTER WAS RIGHT WHEN HE SAID THE DOW WOULD HIT 3600 HE WAS JUST 6 YEARS EARLY IN EARLY 1987 THE ELLIOTT WAVE THEORIST FROM GEORGIA DREW WIDE ATTENTION FOR HIS MARKET FORECASTS THERE HE WAS ON THE COVER OF BARRON'S 3600 ON THE DOW THAT SAYS BOB PRECHTER IS WHERE WE'RE GOING IT WAS A BOLD PREDICTION AT A TIME WHEN THE DOW INDUSTRIAL AVERAGE WAS BARELY AT 2000 UNFORTUNATELY THE DOW NEVER GOT WITHIN 800 POINTS OF THE TARGET BEFORE THE MARKET CRASHED IN OCTOBER TO COMPOUND THINGS MR PRECHTER THEN TURNED INTO A SUPERBEAR CAUSING HIS FOLLOWERS TO MISS RALLY AFTER RALLY IN SUBSEQUENT YEARS THE RESULT MR PRECHTER WENT FROM STOCKMARKET HERO TO PUNCHLINE OF INCROWD JOKES WITH YESTERDAY'S DOW CLOSE OF 360486 DOES HE FEEL VINDICATED REACHED IN HIS GAINESVILLE GA OFFICE MR PRECHTER SAYS THE LATEST RECORD CLOSE DOES INDEED BEAR OUT HIS PREDICTION THOUGH HE KNOWS THE PUBLIC WON'T FORGIVE HIM FOR HIS TIMING THE WAVE PRINCIPLE IS SATISFIED HE INSISTS BUT HE CONCEDES THE GURU IMAGE IS NOT AND STILL STUNNED AT HOW QUICKLY HIS POSITIVE PRESS TURNED NASTY AFTER 1987 MR PRECHTER SAYS SHARPLY THE PERSONAL ASPECT IS JUST IRRELEVANT AS FAR AS VINDICATION AND ALL THAT NONSENSE I'M CERTAINLY NOT GOING TO RUN AROUND YELLING ABOUT IT THE 44YEAROLD MR PRECHTER'S STAR FELL FAST AFTER THE CRASH SUBSCRIBERS TO HIS ELLIOTT WAVE THEORIST NEWSLETTER DROPPED TO AS LOW AS 4000 FROM 20000 THOUGH THE FIGURE IS BACK TO 5000 NOW IT WAS VERY TOUGH FOR ME TO READ THE NEGATIVE PRESS MUCH OF WHICH WAS INACCURATE HE SAYS BUT HE WEATHERED THINGS PERSONALLY DIDN'T LOSE HIS LAKESIDE HOUSE OR HIS FRIENDS HE PULLED BACK FROM THE PUBLIC TO DO OTHER THINGS INCLUDING WRITING A BOOK A TURN IN THE TIDAL WAVE THAT MAKES DIRE PREDICTIONS ABOUT THE STOCK MARKET AND THE WORLD IN GENERAL FROM REAL ESTATE TO JUNK BONDS AND THE JAPANESE MARKET MR PRECHTER SEES AN APPROACHING BEAR MARKET TO BE KICKED OFF BY A CRASH BIGGER THAN THAT OF 1987 HIS WARNING FOR STOCKMARKET INVESTORS YOU SHOULD BE CONCERNED NOW IF YOU'RE IN AND SHOULD DO SOMETHING ABOUT IT BUT WHAT ABOUT THE TIMING MR PRECHTER SAYS HE ACTUALLY FIRST PREDICTED A DOW OF 3600 TO 3700 WAY BACK IN SEPTEMBER 1982 THE PRICE TARGET HAS CERTAINLY REMAINED IN PLACE BUT 10 YEARS AGO I THOUGHT WE WOULD MEET IT MUCH SOONER HE SAYS THE TIMING ELEMENT CERTAINLY STRETCHED A LOT LONGER 9308190030 930819 TECHNOLOGY FIVE FIRMS JOINING GROUP TO BOOST PAPER RECYCLING WASHINGTON THE ENVIRONMENTAL DEFENSE FUND SAID IT IS JOINING FORCES WITH MCDONALD'S CORP AND FOUR OTHER BIG COMPANIES IN A SEARCH FOR WAYS TO BOOST DEMAND FOR ENVIRONMENTALLY PREFERABLE PAPER SEVERAL YEARS AGO MCDONALD'S FORMED AN ALLIANCE WITH THE ENVIRONMENTAL GROUP THAT LED TO BIG MAC CONTAINERS THAT WERE SAFER FOR THE ENVIRONMENT AND TO A BIG DROP IN THE TRASH VOLUME GENERATED BY THE FASTFOOD CHAIN THE FUND SAID THE NEW GROUP WHICH INCLUDES JOHNSON & JOHNSON NATIONSBANK CORP PRUDENTIAL INSURANCE CO OF AMERICA AND TIME INC A UNIT OF TIME WARNER INC AS WELL AS DUKE UNIVERSITY WILL AIM TO EXPAND THE MEMBERS' USE OF PAPER THAT IS RECYCLED UNBLEACHED CHLORINEFREE OR OTHERWISE NOT HARMFUL TO THE ECOLOGY THE NEW GROUP WILL TRY TO DEVELOP A PURCHASING MODEL APPLICABLE TO A WIDE RANGE OF COMPANIES ORGANIZATIONS IN THE TASK FORCE COLLECTIVELY BUY MORE THAN 1 BILLION OF PAPER PRODUCTS A YEAR FOR BUSINESS AND WRITING MATERIALS PUBLICATIONS AND PACKAGING EDF IS WORKING WITH LEADERS IN THEIR FIELDS SAID FRED KRUPP THE FUND'S EXECUTIVE DIRECTOR 9308190029 930819 HIGHER STILL BULLS PUSH INDUSTRIALS TO OVER 3600 POINTS BUT BEARS STAY BEARISH FALLING RATES FUEL THE RALLY IN STOCK PRICES SOME SEE RECESSIONARY TURN AHEAD LOOKS LIKE A BUYERS' PANIC' BY STAFF REPORTERS ANITA RAGHAVAN SARA CALIAN AND STEVEN E LEVINGSTON NEW YORK THE FEVER IS RISING JEFFREY GROSSMAN A SMALL INVESTOR WHO KNOWS HIS WAY AROUND THE MARKET IS WORRIED HE HAS BEEN BUYING AND SELLING STOCKS FOR YEARS BUT LATELY HE HAS BEEN DOING A LOT MORE SELLING THAN BUYING I'M PROBABLY TOO EARLY SAYS MR GROSSMAN TOWN MANAGER OF BOOTHBAY HARBOR ME MAYBE THE DOW WILL GO TO 3700 BUT I'D RATHER BE GETTING OUT TOO EARLY THAN TOO LATE BUT DON'T TALK LIKE THAT AROUND PAUL HUMPERT A RETIRED INSURANCE AGENT IN FORT MITCHELL KY HE TOO HAS BEEN BUYING AND SELLING STOCKS FOR MOST OF HIS LIFEAND HE IS A RAGING BULL EXCEPT FOR A LITTLE BIT OF CASH ALL MY MONEY IS IN THE STOCK MARKET HE PROCLAIMS IF I HAD SOME MORE CASH I'D BUY SOME MORE STOCKS ONE OF THESE MEN IS MAKING A BIG MISTAKE HE WON'T BE ALONE AS STOCK PRICES CLIMB STEADILY HIGHER THE DEBATE AMONG WALL STREET'S SAVVIEST AND BESTPAID ANALYSTS AND MONEY MANAGERS OVER WHERE THE MARKET GOES FROM HERE IS BECOMING MORE HEATED YESTERDAY THE INDUSTRIAL AVERAGE CLOSED AT 360486 UP 1788 ON HEAVY VOLUME OF 3092 MILLION SHARES THE BULLS STILL HAVE THE UPPER HAND IF FOR NO OTHER REASON THAN THAT THEY HAVE BEEN RIGHT SO FAR STOCK PRICES BEGAN RISING IN OCTOBER 1990 AS INVESTORS BOTH INSTITUTIONS AND INDIVIDUALS BEGAN BETTING ON A RECOVERY FROM THE RECESSION THAT BEGAN THREE MONTHS EARLIER IN JULY 1990 AND WITH ONLY MINOR BUMPS ALONG THE WAY PRICES HAVE BEEN RISING EVER SINCE BUT THIS PAST WEEK HAS SEEN A TOUCH OF EUPHORIA ENTERING THE MARKET INVESTORS HAVE SPENT AN INORDINATE AMOUNT OF MONEY BUYING STOCKS OF COMPANIES THAT UNTIL THIS WEEK WERE REGARDED AS DOGS NOT ONLY ARE SHARES OF SUCH RECENTLY SPURNED GIANTS AS PHILIP MORRIS COS AND MERCK & CO GETTING A BOOST BUT SO ARE STOCKS IN RISKY AREAS LIKE BIOTECHNOLOGY IT ALMOST LOOKS LIKE A BUYERS' PANIC SAYS LOUIS TODD HEAD OF EQUITY TRADING AT JC BRADFORD & CO IN NASHVILLE TENN THERE ARE LOTS OF INVESTORS TAKING PROFITS BUT THEY'RE JUST TURNING AROUND AND BUYING SOME OTHER STOCKS THEY'RE EVEN BUYING HEALTH CARE AND BIOTECH WHICH SHOWS HOW DESPERATE THEY ARE TO KEEP BUYING CERTAINLY INDIVIDUALS ARE STILL SHOVING MONEY AT MUTUAL FUNDS AT A FRANTIC PACE AUGUST LOOKS LIKE IT'S ON TRACK TO BE THE HIGHEST MONTH ON RECORD IN TERMS OF CASH FLOWS INTO OUR EQUITY FUNDS SAYS NEAL LITVACK EXECUTIVE VICE PRESIDENT OF MARKETING AT FIDELITY INVESTMENTS THE NATION'S LARGEST MUTUALFUND COMPANY AND BULLS HAVE SOME POWERFUL ADVOCATES ON THEIR SIDE RENOWNED FORMER MUTUALFUND MANAGER PETER LYNCH FOR EXAMPLE SAYS THAT WHILE LOWER INTEREST RATES HAVE BEEN THE FORCE BEHIND STOCKS' RISE SO FAR AT SOME POINT RISING CORPORATE PROFITS WILL TAKE OVER TO DRIVE PRICES HIGHER THE POTENTIAL FOR HIGHER STOCK PRICES IS THERE SAYS THE FORMER MANAGER OF FIDELITY'S MAGELLAN FUND NOTING THAT MANY INVESTORS AREN'T AWARE OF HOW MUCH MORE EFFICIENT MANY AMERICAN COMPANIES HAVE BECOME IN THE PAST SEVERAL YEARS ALL THESE PRODUCTIVITY IMPROVEMENTS ALL THESE COST REDUCTIONS ALL THIS REDESIGNING AND RESTRUCTURING IS GOING TO LEAD TO BETTER MARGINS WHEN BUSINESS GETS BETTER HE SAYS AT ITS CORE THE BULLS' CASE IS SIMPLE THERE ISN'T ANY DECENT ALTERNATIVE TO OWNING STOCKS WITH INTEREST RATES ACROSS THE BOARD AT THEIR LOWEST IN DECADES THERE'S PRECIOUS LITTLE RETURN TO BE FOUND IN SUCH TRADITIONAL AND SAFE INVESTMENTS AS BANK CERTIFICATES OF DEPOSIT OR SHORTTERM GOVERNMENT BILLS AND NOTES AND EVEN THOUGH THE FALLING RATES CONTINUE TO ASTOUND MANY ANALYSTS FEW ARE WILLING TO CALL THE BOTTOM HENCE THE RUSH TO STOCKS LOW RATES CONTINUE TO FORCE MONEY INTO THE STOCK MARKET AND ONCE YOU TRIGGER THIS KIND OF SCRAMBLE TO GET ABOARD IT TENDS TO FEED ON ITSELF SAYS JOSEPH MCALINDEN CHIEF MARKET STRATEGIST AT DILLON READ & CO I THINK THE MARKET WILL MOVE UP BY SOME DRAMATIC LEAPS IN THE NEXT FEW WEEKS LIKE MOST OTHER BULLISH ANALYSTS MR MCALINDEN ISN'T FOOLISH ENOUGH TO PREDICT THAT THE MARKET WILL KEEP CLIMBING FOREVER HE IS PREDICTING A CORRECTION WALL STREET'S EUPHEMISM FOR WHAT COULD BE A GUTWRENCHING DECLINE OF AS MUCH AS 15 IN STOCK PRICES BEGINNING THIS FALL BUT HE IS LOOKING FOR A QUICK SPURT TO 3700 ON THE DOW BEFORE THAT AND BETTER YET A SLOW STEADY CLIMB TO 4000 AFTER THE CORRECTION BUT THE BEAR CASE IS ALMOST AS STRAIGHTFORWARD STOCK PRICES HAVE SIMPLY RISEN TOO FAR TOO FAST IN AN ECONOMY THAT IS TOO WEAK TO SUPPORT THEM THAT ARGUMENT HAS BEEN ADVANCED EVER SINCE THE CURRENT BULL MARKET BEGAN AND SO FAR IT HAS BEEN DEAD WRONG BUT NOW THE BEARS HAVE FOUND NEW AMMUNITION IN PRESIDENT CLINTON'S DEFICITREDUCTION PACKAGE THE SHARPLY HIGHER INCOME TAXES THAT ARE PART OF THAT PACKAGE ARE BOUND TO FURTHER SLOW THE ALREADY SLUGGISH ECONOMY THEY ARGUE PERHAPS EVEN DRAGGING IT INTO A RECESSION SINCE I THINK WE'RE GOING TO BE FLIRTING WITH A RECESSION SOON I THINK WE'LL SEE A BEAR MARKET BEFORE WE SEE 4000 ON THE DOW SAYS HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP BUT GET AWAY FROM THE CORE ARGUMENTS AND THE DEBATE BEGINS TO GET SLIPPERY TAKE THE CASE OF LOW INTEREST RATES BULLS LOVE THE FACT THAT LOW INFLATION HAS SENT THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR BOND TUMBLING TO 625 THE LOWEST SINCE THE TREASURY BEGAN REGULARLY SELLING 30YEAR BONDS 16 YEARS AGO THE 10YEAR BOND YIELD ALSO DECLINED WITH RATES THAT LOW AND PREDICTED TO FALL LOWER STOCKS HAVE NOWHERE TO GO BUT UP THE BOND MARKET PERFORMANCE HAS BEEN EXTRAORDINARY THIS YEAR BUT THE STOCK MARKET STILL DOESN'T FULLY REFLECT THAT PERFORMANCE SAYS JOSEPH R LIRO CHIEF ECONOMIST AT SG WARBURG & CO THE DOW GOING TO 3750 IN THE NEXT FEW MONTHS IS A VIRTUAL LAYUP IF THE STOCK MARKET RESPONDS FORCEFULLY TO THE RALLY IN THE BOND MARKET YET JUST AS STOCKS CAN'T GO UP FOREVER INTEREST RATES CAN'T FALL FOREVER SOME ANALYSTS CONTEND THAT RATES HAVE DROPPED TO UNSUSTAINABLY LOW LEVELS ALREADY THEY ARGUE THAT AFTER RISING TAXES TAKE A BITE OF THE DIVIDENDS AN INVESTOR BUYING A 30YEAR BOND WOULD BE LEFT WITH ABOUT A 36 RETURN JUST BARELY ABOVE THE RATE OF INFLATION FOR ALL PRACTICAL PURPOSES THE RETURN ON A 30YEAR BOND TODAY IS ZERO SAYS PETER CANELO CHIEF MARKET STRATEGIST AT NATWEST SECURITIES CORP THE LAST FEW TIMES WE HAD THIS SITUATION IT MARKED THE TOP OF THE BOND MARKET AND THE STOCK MARKET TOP FOLLOWED THAT BY A FEW MONTHS THE RUSH AMONG INDIVIDUALS TO OWN STOCKS TRIGGERS DIFFERING INTERPRETATIONS TOO FOR THE BULLS IT IS EVIDENCE OF A TRANSFORMATION OF THE WAY AMERICANS THINK ABOUT MONEY AFTER THE PROFLIGATE SPENDING OF THE 1980S THEY SAY AMERICANS ESPECIALLY BABY BOOMERS IN THEIR 40S ARE PLANNING THEIR RETIREMENTS AND TRYING TO FUND THEIR CHILDREN'S COLLEGE EDUCATIONS PLENTY OF ROOM GAIL DUDACK A STOCKMARKET STRATEGIST AT SG WARBURG POINTS OUT THAT AFTER WORLD WAR II AMERICAN HOUSEHOLDS ON AVERAGE HAD HELD ABOUT 357 OF THEIR FINANCIAL ASSETS IN STOCKS DESPITE THE RUSH TO OWN STOCKS THAT BEGAN IN 1990 THAT NUMBER TODAY INCLUDING OWNERSHIP OF STOCK THROUGH MUTUAL FUNDS IS ONLY AT 302 THAT LEAVES PLENTY OF ROOM FOR MORE MONEY TO COME INTO THE STOCK MARKET SHE CALCULATES THAT IF HOUSEHOLD OWNERSHIP OF STOCKS RETURNS TO THE LONGTERM AVERAGE THAT WOULD MEAN ANOTHER 523 BILLION POURING INTO THE MARKET IT'S QUITE POSSIBLE THAT THE DOW COULD GET TO 4000 THIS YEAR SHE SAYS THERE'S BEEN AN OBVIOUS IMPROVEMENT IN SENTIMENT THIS WEEK BUT OTHERWISE EVERYTHING IS REALLY THE SAME AS IT WAS AT THE START OF THE YEAR YET BEARS ARE QUICK TO POINT OUT THAT MANY OF THOSE EAGER NEW INVESTORS HAVEN'T YET LIVED THROUGH A BEAR MARKET ONLY AFTER THEIR PORTFOLIOS HAVE BEEN POUNDED CONSISTENTLY LOWER FOR A FEW MONTHS WILL ANYONE REALLY KNOW HOW DEDICATED THESE FOLKS ARE TO LONGTERM STOCKMARKET INVESTING AND BEARS LIKE MICHAEL METZ INVESTMENT STRATEGIST AT OPPENHEIMER & CO SUSPECT THAT THEY WON'T BE ALL THAT DEDICATED IF THERE'S A SHARP DECLINE HE SAYS THERE'LL BE TREMENDOUS WITHDRAWAL SYMPTOMS BUT THE TYPES OF INVESTMENTS THAT MANY INDIVIDUALS ARE MAKING SUGGEST THERE WON'T BE ANY PANIC EXODUS MR LITVACK OF FIDELITY INVESTMENTS POINTS OUT FOR EXAMPLE THAT UNLIKE THE SPECULATIVE BETS THAT FRENZIED INVESTORS WERE MAKING IN 1986 AND 1987 85 OF THE NEW CASH FLOWING INTO THE BOSTON COMPANY RECENTLY HAS BEEN CHANNELED INTO SUCH CONSERVATIVE VEHICLES AS GROWTH AND INCOME FUNDS WHICH INVEST IN A COMBINATION OF STOCKS AND BONDS IN A DOWNTURN THOSE KINDS OF FUNDS FALL LESS SAYS MR LITVACK I'M NOT SAYING THAT WITH A 500POINT PLUNGE EVERYBODY IS GOING TO STAY PUT BUT COMPARED TO 1987 WE'RE IN A MUCH BETTER POSITION TO WEATHER A CORRECTION OF COURSE ALL THAT CONFUSION LEAVES SOME INVESTORS WELL CONFUSED IT'S MINDBOGGLING SAYS ARTHUR F MCCONNELL A NEWSPAPER PRESSMAN KEEPING AN EYE ON HIS 90000 PORTFOLIO OF STOCKS YESTERDAY AT A NEW YORK OFFICE OF CHARLES SCHWAB THE DISCOUNT BROKER YOU DON'T UNDERSTAND WHY IT'S GOING UP AND YOU DON'T UNDERSTAND WHY IT SHOULD GO DOWN I'M CAUTIOUS BECAUSE I'VE ONLY GOT A FEW MONTHS TO GO BEFORE I RETIRE IN ANY CASE ALL THE BEARS LURKING AROUND MAY BE THE STRONGEST ARGUMENT OF ALL FOR THE BULLS IN THE SEEMINGLY PARADOXICAL WORLD OF THE STOCK MARKET ONE OF THE MOST POPULAR BULLISH INDICATORS IS A HIGH LEVEL OF BEARISH SENTIMENT THE LOGIC UNDERLYING THAT NOTION BEARISH INVESTORS ARE HOLDING ON TO THEIR CASH AND CASH IS THE FUEL THAT DRIVES THE STOCK MARKET WHEN BEARISH SENTIMENT IS HIGH THERE IS LOTS OF FUEL AVAILABLE TO POWER THE MARKET HIGHER ALL IT TAKES IS A STEADY DRUMBEAT OF GOOD NEWS TO EVENTUALLY PERSUADE THE BEARS TO CHANGE THEIR MINDS AND INVEST CONVERSELY A HIGH LEVEL OF BULLISH SENTIMENT INDICATES THAT CASH LEVELS ARE AT LOWS AND THE MARKET IS SUSCEPTIBLE TO A CORRECTION OR WORSE THERE ARE LOTS OF NEWSLETTER WRITERS AND ANALYSTS WHO ARE TELLING INVESTORS THEY DON'T WANT TO BE AROUND WHEN THE MUSIC STOPS SAYS WILLIAM ROTHE HEAD OF OVERTHECOUNTER TRADING AT ALEX BROWN & SONS INC IN BALTIMORE THOSE BEAR ARGUMENTS ARE GOOD TO HAVE IN THE END THE BEARS WILL HAVE TO CONTEND WITH THE LIKES OF W ROGER HAZARD AND SHAWN SPLANE MR HAZARD OF FORT PIERCE FLA HAS BEEN SPENDING LOTS OF TIME MONITORING THE STOCK MARKET SINCE HE TURNED OVER HIS NEW JERSEY FURNITURE BUSINESS TO HIS SON IN 1970 HE IS ALSO INVESTING 1000 A MONTH DIRECTLY IN THE MARKET AND HIS PENNYSTOCK CLUB BUYS ABOUT 2000 WORTH OF SMALL STOCKS EACH MONTH HE FEELS GOOD ABOUT BOTH THE ECONOMY AND THE MARKET WE'RE COMING OUT OF A RECESSION AND THE MARKET IS GOING TO KEEP GOING UP HE SAYS MR SPLANE A RADIO TALKSHOW PRODUCER IN SEATTLE WOULD BE HAPPY TO SEE THE MARKET GO DOWN A BIT BUYING ON PULLBACKS THAT SEEMS TO HAVE BEEN DRUMMED INTO ALL OUR HEADS INCLUDING MY OWN HE SAYS ALTHOUGH HE MISSED THE BIGGEST PULLBACK OF ALL THE 1987 CRASH MR SPLANE DID EXPERIENCE A SHARP DROP IN STOCK PRICES SHORTLY AFTER BE BEGAN INVESTING IN 1990 DURING THAT LITTLE TEST WE STUCK BY OUR GUNS AND KEPT SENDING MONEY EVERY MONTH AND WE'VE NEVER REGRETTED IT HE SAYS STEPHEN FRANK CONTRIBUTED TO THIS ARTICLE 9308190028 930819 INTERNATIONAL BRIEF BICC PLC BRITISH FIRM'S PRETAX PROFIT DROPPED 12 FOR FIRST HALF BRITISH ENGINEERING COMPANY BICC PLC SAID PRETAX PROFIT FOR THE FIRST HALF OF 1993 DROPPED 12 MAINLY BECAUSE OF THE RECESSION IN CONTINENTAL EUROPE PRETAX PROFIT FELL TO 51 MILLION 759 MILLION FROM 58 MILLION THE RESULT WAS AT THE BOTTOM END OF MARKET PREDICTIONS SALES WERE UP 10 TO 195 BILLION FROM 177 BILLION ECONOMIC RECOVERIES IN THE UK NORTH AMERICA AND AUSTRALIA HAVE BEEN DISAPPOINTINGLY SLOW CHAIRMAN ROBIN BIGGAM SAID MEANWHILE ECONOMIES IN CONTINENTAL EUROPE HAVE DETERIORATED RAPIDLY IN THE PAST 12 MONTHS PARTICULARLY IN SPAIN AS A RESULT THE SHORTTERM TRADING OUTLOOK REMAINS DIFFICULT HE SAID SIR ROBIN DIDN'T RULE OUT THE POSSIBILITY THAT THE COMPANY'S DIVIDEND MAY BE CUT WHEN FULLYEAR RESULTS ARE ANNOUNCED IN MARCH THAT SENT THE STOCK DOWN 14 PENCE TO 403 PENCE 6 YESTERDAY ON THE LONDON STOCK EXCHANGE BICC DESCRIBED THE PERFORMANCE OF ITS BIGGEST UNIT THE CIVIL ENGINEERING CONSTRUCTION GROUP BALFOUR BEATTY AS OUTSTANDING BALFOUR BEATTY IS ONE OF THE UK'S LARGEST CONSTRUCTION COMPANIES 9308190027 930819 BUSINESS BRIEF QUANTUM CORP CHIPBASED STORAGE DEVICES FOR COMPUTERS ARE PLANNED QUANTUM CORP FOLLOWING SIMILAR MOVES BY RIVALS WILL BEGIN DEVELOPING COMPUTERDATA STORAGE DEVICES THAT ACT LIKE HARDDISK DRIVES BUT CONTAIN MEMORY CHIPS INSTEAD OF MOVING DISKS THE MILPITAS CALIF DISKDRIVE MAKER SAID IT WILL WORK WITH ANOTHER SILICONVALLEY COMPANY CLOSELY HELD SILICON STORAGE TECHNOLOGY INC OF SUNNYVALE TO DEVELOP AND MARKET DEVICES THAT USE SOCALLED FLASH MEMORY CHIPS WHICH ARE SEMICONDUCTORS THAT HOLD DATA EVEN WHEN ELECTRIC POWER IS TURNED OF AS PART OF THE DEAL QUANTUM SAID IT WILL TAKE AN UNSPECIFIED EQUITY INTEREST IN SILICON STORAGE A FLASHCHIP VENDOR FLASH MEMORY IS INCREASINGLY USED TO STORE DATA IN PORTABLE COMPUTERS BECAUSE IT USES MUCH LESS POWER THAN HARD DRIVES AND THE CHIPS ARE LESS LIKELY TO FAIL AFTER DROPS AND BUMPS TWO OF QUANTUM'S BIG CALIFORNIA RIVALS CONNER PERIPHERALS INC OF SAN JOSE AND SEAGATE TECHNOLOGY INC OF SCOTTS VALLEY ARE ALREADY DEVELOPING HARDDRIVE SUBSTITUTES THAT USE FLASH MEMORY CHIPS 9308190026 930819 WHAT'S NEWS BUSINESS AND FINANCE THE DOW BROACHED THE 3600 LEVEL AMID A PLUNGE IN LONGTERM INTEREST RATES THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 1788 POINTS TO A RECORD 360486 THE PRICE OF THE TREASURY'S BENCHMARK 30YEAR BOND SOARED 3/4 OF A POINT ITS YIELD FELL TO 625 A 16YEAR LOW THE NASDAQ COMPOSITE INDEX ADVANCED 382 POINTS TO 73483 ITS THIRD CONSECUTIVE RECORD ANALYSTS AND MONEY MANAGERS ARE DEBATING WHETHER THE MARKET WILL CONTINUE TO CLIMB INVESTORS HAVE STEPPED UP SPENDING ON STOCKS OF COMPANIES THAT HAD BEEN SPURNED AS RISKY KODAK'S CHAIRMAN SAID THE COMPANY WILL CUT 10000 JOBS OR ABOUT 8 OF ITS WORKERS BY 1995 AND CUT SPENDING TO RAISE CASH FLOW BUT THE MOVE BY KAY WHITMORE WHO WAS OUSTED IN JULY AND WILL LEAVE WHEN A SUCCESSOR IS NAMED IS VIEWED AS A FIRST STEP IN A PLAN TO BE CARRIED OUT BY A SUCCESSOR NORTHWEST AIR'S TOP EXECUTIVES PREDICT THE CARRIER WILL EARN MONEY NEXT YEAR AND ALSO BE ABLE TO SELL SOME 500 MILLION IN NEW EQUITY TO THE PUBLIC BUT ANALYSTS CAUTION THAT NORTHWEST STILL HAS AN INFERIOR DOMESTIC ROUTE SYSTEM STIFF COMPETITION IN ITS CRUCIAL ASIAN ROUTES AND AN AGING FLEET IPALCO ENTERPRISES BOOSTED ITS HOSTILE BID FOR PSI RESOURCES TO 173 BILLION FROM 16 BILLION JUST TWO DAYS AFTER PSI AND CINCINNATI GAS & ELECTRIC SWEETENED TERMS OF THEIR MERGER PLAN TO MATCH IPALCO'S EARLIER RISE AT&T AND MCCAW CELLULAR FACE DETERMINED WELLFINANCED COMPETITION AND TECHNICAL HURDLES AS THEY JOIN FORCES OTHER FIRMS WILL BE PITCHING COMPETITIVE SERVICES AND IN SOME CASES POSSIBLY BETTER TECHNOLOGY FOR MAKING CALLS AND SENDING DATA REGULATORS AND LAWMAKERS AREN'T EXPECTED TO STOP AT&T'S PLANS TO BUY MCCAW DESPITE BABY BELLS' CONCERNS THE BELLS PLAN TO USE THE AT&TMCCAW ALLIANCE TO WIN GREATER FREEDOM TO ENTER NEW BUSINESSES US DEMAND FOR PETROLEUM REMAINS SLUGGISH NEW INDUSTRY FIGURES SHOW GASOLINE DELIVERIES WERE ESSENTIALLY FLAT IN JULY FROM A YEAR EARLIER BUT AN OIL INDUSTRY ASSOCIATION SAID THE TREND OF MODERATE GROWTH IN CONSUMPTION OF GASOLINE IS CONTINUING GENERAL ELECTRIC PLANS TO ANNOUNCE ANOTHER MAJOR ROUND OF LAYOFFS AT ITS BIG JETENGINE DIVISION NEAR CINCINNATI INDUSTRY EXECUTIVES SAID THE LAYOFFS MAY TOTAL AS MANY AS 4000 A TOP PHILIPS ELECTRONICS EXECUTIVE EXPRESSED DISSATISFACTION WITH THE COMPANY'S PERFORMANCE SO FAR IN A GLOBAL MARKETING BATTLE BETWEEN NEW DIGITAL MUSIC SYSTEMS BUT HE VOWED A COMEBACK NEXT MONTH WHEN A NEW LINE OF PRODUCTS HITS THE MARKET GERMANY SAID ITS RECESSION MAY HAVE BOTTOMED OUT IN THE SECOND QUARTER BUT THAT OUTLOOK WAS OVERSHADOWED BY A SEPARATE FORECAST OF A SLUGGISH RECOVERY THAT COULD ELIMINATE AN ADDITIONAL 700000 JOBS BY LATE 1994 SALES OF APPLE'S NEW HANDHELD COMPUTER THE NEWTON MESSAGEPAD APPEAR TO BE OFF TO A BRISK START IN A FEW MARKETS BUT RETAILERS SAY IT'S TOO EARLY TO TELL IF NEWTON IS THE BLOCKBUSTER APPLE BADLY NEEDS BONDS LEHMAN BROTHERS TREASURY INDEX 547637 UP 2237 COMMODITIES OIL 1766 A BARREL OFF 26 CENTS DOW JONES FUTURES INDEX 12538 UP 020 SPOT INDEX 12346 OFF 034 DOLLAR 10160 YEN UP 050 16800 MARKS OFF 00131 9308190025 930819 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 BOSTON EDISON CO 100 MILLION OF DEBENTURES DUE AUG 15 2000 PRICED AS 605S AT 99935 TO YIELD 6061 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 65 BASIS POINTS ABOVE COMPARABLE TREASURYS RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO CAROLINA POWER & LIGHT CO 100 MILLION OF FIRST MORTGAGE BONDS DUE AUG 15 2023 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY KIDDER PEABODY & CO IT WAS REOFFERED AS 6875S AT 98812 TO YIELD 697 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE TREASURYS THE DEBT IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P DUKE POWER CO 150 MILLION OF FIRST AND REFUNDING BONDS DUE AUG 1 2025 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY SALOMON BROTHERS INC IT WAS REOFFERED AS 675S AT 96819 TO YIELD 7 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 73 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA2 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC ENRON CORP 100 MILLION OF SENIOR DEBENTURES DUE AUG 15 2023 PRICED AS 7S AT 9815 TO YIELD 7151 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 875 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL FARM CREDIT BANK 135 MILLION OF NOTES DUE AUG 27 1996 PRICED AT PAR TO YIELD 44 ACCORDING TO MCM CORPORATEWATCH THE NOTES WHICH ARE NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF FOUR BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF STEPUP NOTES DUE AUG 26 1996 PRICED AT PAR TO YIELD 395 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 57 BASIS POINTS ABOVE COMPARABLE TREASURYS THE COUPON STEPS UP TO 475 AFTER ONE YEAR THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF MEDIUMTERM NOTES DUE AUG 25 1994 PRICED AS 345S AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF MEDIUMTERM NOTES DUE AUG 25 2003 PRICED AT PAR TO YIELD 631 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 63 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC JB HUNT TRANSPORT SERVICES INC 100 MILLION OF NOTES DUE SEPT 1 2003 PRICED AS 625S AT 9968 TO YIELD 6294 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 60 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO INTERNATIONAL SEMITECH MICROELECTRONICS INC 6542 MILLION OF SENIOR SECURED DISCOUNT NOTES DUE AUG 15 2003 PRICED AT 45858 TO YIELD 115 ACCORDING TO MCM CORPORATEWATCH THE COMPANY RECEIVED 300 MILLION IN PROCEEDS THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED BA2 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO SHOPKO STORES INC 100 MILLION OF NOTES DUE AUG 15 2003 PRICED AS 65S AT 99722 TO YIELD 6538 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 85 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO TRACOR INC 105 MILLION OF SENIOR SUBORDINATED NOTES DUE AUG 15 2001 PRICED AT PAR TO YIELD 10875 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FOUR YEARS ARE RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BT SECURITIES CORP CFI PROSERVICES INC INITIAL PUBLIC OFFERING OF 18 MILLION COMMON SHARES PRICED AT 975 APIECE THROUGH AN UNDERWRITING GROUP COMANAGED BY HAMBRECHT & QUIST INC ALLEN & CO AND DAIN BOSWORTH INC ACCORDING TO THE COMPANY 15 MILLION SHARES ARE BEING OFFERED BY CFI AND 300000 SHARES BY CERTAIN SELLING SHAREHOLDERS HEALTHSOURCE INC TWO MILLION COMMON SHARES PRICED AT 3975 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO OF THE TOTAL 18 MILLION SHARES ARE BEING OFFERED BY THE COMPANY MORGAN STANLEY GROUP INC EIGHT MILLION SHARES OF CUMULATIVE PERPETUAL PREFERRED STOCK PRICED AT 25 APIECE THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO ACCORDING TO MCM CORPORATEWATCH THE PREFERRED IS CALLABLE AFTER FIVE YEARS AND HAS A 7375 DIVIDEND YIELD MULTICARE COS INITIAL OFFERING OF 42 MILLION COMMON SHARES PRICED AT 10 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO TRICORD SYSTEMS INC 28 MILLION COMMON SHARES PRICED AT 19 APIECE THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC OF THE TOTAL 900000 SHARES ARE BEING OFFERED BY THE COMPANY WESTERN RESOURCES INC THREE MILLION COMMON SHARES PRICED AT 3625 APIECE THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC ROC COMMUNITIES INITIAL OFFERING OF 56 MILLION COMMON SHARES PRICED AT 20 APIECE THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO JC BRADFORD AND MORGAN KEEGAN BROWARD COUNTY FLA 135 MILLION SERIES 1993 WATER AND SEWER UTILITY REVENUE REFUNDING BONDS PRICED BY A BEAR STEARNS & CO GROUP YIELDS RANGE FROM 275 IN 1994 TO 542 IN 2018 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY 1207 MILLION SERIES 1993 REVENUE REFUNDING CERTIFICATES OF PARTICIPATION FOR CEDARSSINAI MEDICAL CENTER PRICED BY A GOLDMAN SACHS & CO GROUP INCLUDED IN THE ISSUE ARE 651 MILLION OF CURRENTCOUPON BONDS WITH YIELDS THAT RANGE FROM 28 IN 1994 TO 556 IN 2017 NOT FORMALLY REOFFERED TO INVESTORS ARE 278 MILLION OF DERIVATIVES KNOWN AS PERIODIC AUCTION RESET SECURITIES AND 278 MILLION OF INVERSE FLOATING RATE SECURITIES MOODY'S HAS RATED THE OFFERING DOUBLEA MASSACHUSETTS 8415 MILLION 1993 SERIES C GENERAL OBLIGATION REFUNDING BONDS PRICED BY A BEAR STEARNS & CO GROUP YIELDS RANGE FROM 41 IN 1998 TO 53 IN 2008 BONDS DUE IN 2003 2005 AND 2010 ARE INSURED BY AMBAC INDEMNITY CORP AND BONDS DUE IN 2009 ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO THOSE SECURITIES CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P UNINSURED BONDS HAVE A SINGLEA RATING FROM MOODY'S S&P AND FITCH INVESTORS SERVICE INC METROPOLITAN ATLANTA RAPID TRANSIT AUTHORITY 150 MILLION SERIES 1993A SALESTAX REVENUE BONDS APPARENTLY WON BY A CHEMICAL SECURITIES INC GROUP WITH A BID SETTING THE NET INTEREST COST AT 5171 YIELDS RANGE FROM 385 IN 1997 TO 53 IN 2012 AND 2013 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P PENNSYLVANIA 242 MILLION THIRD SERIES OF 1993 GENERAL OBLIGATION BONDS APPARENTLY WON BY A FIRST BOSTON CORP GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 50386 YIELDS RANGE FROM 26 IN 1994 TO 53 IN 2012 AND 2013 BONDS DUE IN 2002 ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P ALL OTHER BONDS HAVE BEEN RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P RHODE ISLAND CONVENTION CENTER AUTHORITY 1823 MILLION 1993 SERIES A REFUNDING REVENUE BONDS PRICED BY A KIDDER PEABODY & CO GROUP YIELDS RANGE FROM 3 IN 1994 TO 558 IN 2020 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 3049 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MORGAN STANLEY & CO THE OFFERING SERIES 1589 IS BACKED BY 30YEAR 625 RELOCATION MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 6987 AND WEIGHTED AVERAGE MATURITY OF 359 MONTHS BANCA QUILMES SA ARGENTINA 50 MILLION OF 875 EUROBONDS DUE SEPT 8 1996 AT ISSUE AND REOFFER PRICE 9975 VIA PRUDENTIALBACHE SECURITIES UK INC BONDS YIELD MARGIN OF 448 BASIS POINTS OVER COMPARABLE US TREASURY FEES 125 POINTS INTEREST PAYABLE SEMIANNUALLY CREDIT SUISSE SWITZERLAND 200 MILLION OF 6125 SUBORDINATED EUROBONDS DUE SEPT 29 2003 AT ISSUE PRICE 101165 VIA CREDIT SUISSE FIRST BOSTON LTD REOFFERED AT 9949 TO YIELD 619 A SPREAD OF 41 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES TWO POINTS DENMARK SOVEREIGN 1 BILLION OF FLOATINGRATE EURONOTES DUE SEPT 8 1997 AT ISSUE AND REOFFER PRICE PAR VIA LEHMAN BROTHERS INTERNATIONAL INTEREST PAYABLE QUARTERLY AT THREEMONTH LONDON INTERBANK OFFERED RATE FOR US DOLLARS LESS 0125 POINT FEES 0125 POINT EXXON CAPITAL CORP US PARENT 250 MILLION OF 6125 EUROBONDS AT ISSUE AND REOFFER PRICE 99817 VIA MORGAN STANLEY INTERNATIONAL BONDS YIELD 6144 A MARGIN OF 37 BASIS POINTS OVER THE 10YEAR US TREASURY GUARANTOR EXXON CORP FEES 04 POINT RABOBANK NEDERLAND NETHERLANDS 200 BILLION ITALIAN LIRE OF 9 EUROBONDS DUE SEPT 8 2003 AT ISSUE PRICE 101925 VIA BANCA COMMERCIALE ITALIANA REOFFERED AT 10025 TO YIELD 896 BONDS CALLABLE FROM SEPTEMBER 1995 AT PAR FEES TWO POINTS RURAL & INDUSTRIES BANK OF WESTERN AUSTRALIA AUSTRALIA 100 MILLION AUSTRALIAN DOLLARS OF 75 EUROBONDS DUE SEPT 29 2003 AT ISSUE PRICE 10095 VIA HAMBROS BANK LTD BONDS YIELD 765 AT 9895 BREAKEVEN PRICE FOR COMANAGERS GUARANTOR TREASURER OF WESTERN AUSTRALIA FEES 2125 POINTS LESS 0125 POINT FOR LEAD MANAGER 9308190024 930819 WHAT'S NEWS WORLD WIDE SUDAN DEFENDED ITSELF AGAINST US ALLEGATIONS OF TERRORISM THE NATION'S MILITARY RULER DISMISSED ACCUSATIONS BY WASHINGTON THAT HIS COUNTRY SUPPORTS INTERNATIONAL TERRORISM AND SAID THE KHARTOUM GOVERNMENT ADVOCATES ONLY ISLAM BY ADDING SUDAN TO ITS LIST OF COUNTRIES SUPPORTING TERRORISM WASHINGTON YESTERDAY SEVERED SUDAN FROM US ASSISTANCE PROGRAMS WITH THE EXCEPTION OF HUMANITARIAN AID BUT LT GEN OMAR HASSAN ELBASHIR SUDAN'S LEADER INDICATED HE WOULD REJECT EVEN THE HUMANITARIAN AID THE US ACTION COINCIDED WITH REPORTS OF EVIDENCE LINKING SUDANESE DIPLOMATS IN THE US WITH A TERRORIST PLOT TO BOMB TARGETS IN NEW YORK ALL TESTS HAVE BEEN COMPLETED IN PREPARATION FOR THE POSSIBLE USE OF AIR POWER IN BOSNIA A UN SPOKESMAN ANNOUNCED HE SAID UN CHIEF BOUTROSGHALI HAD INFORMED SECURITY COUNCIL PRESIDENT MADELEINE ALBRIGHT OF THE US THAT THE UN HAS THE OPERATIONAL CAPABILITY TO LAUNCH AIR STRIKES IN SUPPORT OF UN PEACEKEEPERS SERB FORCES HAVE FAILED TO COMPLETE A PROMISED WITHDRAWAL FROM MOUNT IGMAN OVERLOOKING BOSNIA'S CAPITAL SARAJEVO AND SOME SOLDIERS HAVEN'T EVEN RECEIVED ORDERS TO PULL OUT A SPOKESMAN FOR THE UN PROTECTION FORCE IN SARAJEVO SAID OTHER UN OFFICIALS AND BOSNIAN SERB LEADERS ALREADY HAD ANNOUNCED WITHDRAWAL OF SERB FORCES MEMBERS OF CONGRESS TOLD THE WHITE HOUSE TO SLOW DOWN ON A PLAN TO PERMIT US COMBAT TROOPS TO SERVE UNDER FOREIGN COMMANDERS IN UN PEACEKEEPING OPERATIONS SEVERAL LAWMAKERS COMPLAINED OF A LACK OF CONSULTATION ON THE ISSUE DEFENSE SECRETARY ASPIN ORDERED AN INVESTIGATION ON WHETHER A JUNE 1984 STAR WARS TEST'S SUCCESS WAS FAKED TO MISLEAD MOSCOW AND CONGRESS BUT EXDEFENSE SECRETARY WEINBERGER SAID THE REPORTED DECEPTION WAS NONSENSE AND THE OFFICER WHO WAS IN CHARGE OF THE TEST SAID IT WAS CONDUCTED WITH SCIENTIFIC INTEGRITY A FLORIDA GIRL DOESN'T HAVE TO SEE HER BIOLOGICAL PARENTS AGAIN A JUDGE RULED DENYING THEIR BID TO BE DECLARED HER LEGAL PARENTS THE JUDGE SAID THE MAN WHO RAISED KIMBERLY MAYS 14 WHO WAS SWITCHED AT BIRTH IS HER LEGAL FATHER ISRAEL'S SUPREME COURT BLOCKED JOHN DEMJANJUK'S DEPARTURE AT LEAST UNTIL TOMORROW TO GIVE HOLOCAUST SURVIVORS MORE TIME TO SEEK A NEW TRIAL FOR OTHER NAZI WAR CRIMES THE RETIRED OHIO AUTO WORKER WAS ACQUITTED LAST MONTH OF BEING NOTORIOUS DEATH CAMP GUARD IVAN THE TERRIBLE MICE WERE CURED OF COMMON FORMS OF MUSCULAR DYSTROPHY BY SCIENTISTS USING A GENE THERAPY TECHNIQUE BUT THE UNIVERSITY OF MICHIGAN RESEARCHERS CAUTIONED THAT IT WILL BE YEARS BEFORE THE GENE THERAPY TREATMENT CAN BE ATTEMPTED IN HUMANS A KREMLIN CORRUPTION PANEL ACCUSED RUSSIAN VICE PRESIDENT RUTSKOI OF INVOLVEMENT WITH A SUSPICIOUS SWISS BANK ACCOUNT THAT IT SAID CONTAINED MILLIONS OF DOLLARS SMUGGLED OUT OF THE COUNTRY THE HEAD OF THE PANEL ALSO ALLEGED THAT RUSSIA'S CHIEF PROSECUTOR STEPANKOV HAD PLOTTED TO HAVE HIM MURDERED BECAUSE OF HIS CORRUPTION PROBES MEXICAN LEADER SALINAS DECLARED IN AN INTERVIEW WITH THE WALL STREET JOURNAL THAT THE NORTH AMERICAN FREE TRADE AGREEMENT IS AN OPPORTUNITY THAT OCCURS ONCE IN A GENERATION HE SAID HE HOPES THE US CONGRESS IS UP TO ITS HISTORICAL RESPONSIBILITY TO PASS THE PACT EGYPT'S INTERIOR MINISTER SUFFERED AN ARM INJURY IN A MIDDAY ASSASSINATION ATTEMPT OUTSIDE HIS OFFICE IN CENTRAL CAIRO AT LEAST FOUR PEOPLE WERE KILLED AND 15 OTHERS INJURED WHEN A BOMB EXPLODED IN FRONT OF HASSAN ELALFY'S CAR AFTER THE BLAST ISLAMIC MILITANTS OPENED FIRE NEARBY AVERAGE SAT SCORES ROSE A SECOND CONSECUTIVE YEAR FOR COLLEGEBOUND HIGH SCHOOL SENIORS BUT EDUCATION ANALYSTS CAUTIONED THAT THE IMPROVEMENT WAS SLIGHT THE AVERAGE SCORE ON THE TEST'S MATH SECTION ROSE TWO POINTS TO 478 THE AVERAGE SCORE ON THE VERBAL SECTION ROSE ONE POINT TO 424 AN EXPERIMENTAL ROCKET COMPLETED ITS FIRST TEST FLIGHT BOOSTING BACKERS' HOPES THAT THE SINGLESTAGE DESIGN WILL BE CHEAPER AND MORE RELIABLE THAN CURRENT SPACE LAUNCH ROCKETS OFFICIALS SAID IN NEW MEXICO THE DELTA CLIPPEREXPERIMENTAL ROCKET IS A ONETHIRD SCALE PROTOTYPE OF A PROPOSED LIGHTWEIGHT MCDONNELL DOUGLAS ROCKET 9308190023 930819 NORTHWEST EXECUTIVES SEE TURNAROUND IN 1994 WITH POSSIBILITY OF EQUITY SALE BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL ST PAUL MINN TOP EXECUTIVES OF NORTHWEST AIRLINES PREDICT THE STRUGGLING CARRIER WILL EARN MONEY NEXT YEAR AND ALSO BE ABLE TO SELL SOME 500 MILLION IN NEW EQUITY TO THE PUBLIC ALTHOUGH THE EXECUTIVES DIDN'T SPECIFY THE AMOUNT OF EXPECTED PROFIT NET INCOME WOULD BE A BIG CHANGE AT AN AIRLINE THAT HAD LOSSES OF ABOUT 19 BILLION SINCE CURRENT COCHAIRMEN ALFRED CHECCHI AND GARY WILSON LED A 365 BILLION LEVERAGED BUYOUT OF THE CARRIER IN 1989 AFTER WHAT HE TERMED FOUR YEARS OF HELL MR WILSON SAID THE NATION'S FOURTHLARGEST AIRLINE IS PLAYING OFFENSE NOW AMONG OTHER THINGS THE FORMER WALT DISNEY CO CHIEF FINANCIAL OFFICER SAID HE HOPES NORTHWEST A UNIT OF CLOSELY HELD WINGS HOLDINGS INC WILL BE ABLE TO RAISE AN UNSPECIFIED AMOUNT OF MONEY YET THIS YEAR THROUGH A NEW DEBT ISSUE EITHER TO THE PUBLIC OR TO PRIVATE INVESTORS IN SEPARATE INTERVIEWS AT NORTHWEST'S HEADQUARTERS THE COCHAIRMEN AND CHIEF EXECUTIVE OFFICER JOHN DASBURG PAINTED A SURPRISINGLY OPTIMISTIC PICTURE OF A COMPANY THAT JUST LAST MONTH ESCAPED FILING FOR BANKRUPTCYLAW PROTECTION AFTER UNIONS AND LENDERS AGREED TO CONCESSIONS THE FINANCIAL SITUATION WAS SO DIRE THAT NORTHWEST PREPARED A 19PAGE QUESTIONANDANSWER BOOKLET FOR USE IF THE COMPANY FILED FOR BANKRUPTCYLAW PROTECTION AS IT WAS PREPARED TO DO JULY 6 TIME HAS RUN OUT THE BOOKLET STATES BEFORE OUTLINING CONSEQUENCES SUCH AS STEEP WAGE CUTS AND LAYOFFS THE BOOKLET ALSO SAID THAT CASH OF ABOUT 200 MILLION AT THE TIME WOULD BE SUFFICIENT FOR ONLY ABOUT 14 TO 20 DAYS OF BANKRUPTCY OPERATIONS A SPOKESMAN YESTERDAY CONFIRMED THE BOOKLET'S CONTENTS BUT SAID THE AIRLINE'S CASH IS NOW NORTH OF 300 MILLION THE INTERVIEWS IN THREE CORNER OFFICES OF NORTHWEST'S EXECUTIVE SUITE CAME AS THE OFFICIALS PREPARED TO SEAT NEW BOARD MEMBERS TODAY PICKED BY EACH OF THE CARRIER'S THREE BIG UNIONS IT ALSO MARKED THE END OF A LONG PERIOD OF PUBLIC SILENCE BY MESSRS CHECCHI AND WILSON WHO HAD FEARED THAT ANY COMMENTS MADE AS THEY SOUGHT CONCESSIONS FROM LABOR AND LENDERS COULD BACKFIRE THE EXECUTIVES SAID THE RETURN TO PROFIT WOULD BE SPURRED BY CONCESSIONS MADE BY LABOR LENDERS AND EQUITY HOLDERS AND BY A GRADUALLY IMPROVING BUSINESS THEIR OPTIMISM ISN'T SHARED BY SOME INDUSTRY ANALYSTS WHO SAY NORTHWEST STILL HAS AN INFERIOR DOMESTIC ROUTE SYSTEM STIFF COMPETITION IN ITS CRUCIAL ASIAN ROUTES AND AN AGING FLEET OF PLANES THE EXECUTIVES ACKNOWLEDGED THEY STILL FACE TOUGH TIMES BUT MR DASBURG SAID HE IS CAUTIOUSLY OPTIMISTIC THAT BUSINESS WILL GROW IN NORTH AMERICA AND ASIA AND THAT INDUSTRY CAPACITY OR THE NUMBER OF AVAILABLE SEATS WILL BE ESSENTIALLY STABLE OVER THE NEXT FEW YEARS HE SAID THAT DESPITE RECENT FARE CUTS THAT SHOULD ALLOW YIELDS THE AMOUNT OF REVENUE AN AIRLINE RECEIVES FOR A SEAT TO STRENGTHEN MR DASBURG ALSO SAID HE HOPES TO STRENGTHEN NORTHWEST'S PRESENCE ON THE WEST COAST BY EARLY 1994 AND THAT HIS AIRLINE PLANS NO APPEAL OF THE RECENT JURY DECISION THAT AMR CORP'S AMERICAN AIRLINES DIDN'T BREAK THE LAW WHEN IT SLASHED FARES LAST YEAR AND DESPITE CONCERNS THAT THE COMPANY HAS MERELY POSTPONED THE DAY OF RECKONING WITH LENDERS MR DASBURG AND MR WILSON SAID THEY ANTICIPATE NO PROBLEMS PAYING OR REFINANCING BIG DEBT PAYMENTS PUT OFF UNTIL 1997 AND BEYOND AS THEY CONSIDERED PAY CUTS OF UP TO 155 FOR THREE YEARS MANY EMPLOYEES EXPRESSED RESENTMENT LAST MONTH OVER THE CALIFORNIA INVESTORS' LEVERAGED BUYOUT OF THE COMPANY WE'D HAVE A BIG GOINGAWAY PARTY IF THEY LEFT SAID ROGER BACKMAN A MECHANIC WHO STILL VOTED IN FAVOR OF THE CONCESSIONARY AGREEMENT ANOTHER MECHANIC SAID I'D LIKE TO PUNCH THEM IN THE NOSE BUT THE NORTHWEST EXECUTIVES CONTEND THAT NOW THAT THE UNCERTAINTY IS OVER MORALE AT THE AIRLINE IS HIGH IF ALL EMPLOYEES EXERCISE STOCK CONVERSION RIGHTS MESSRS CHECCHI AND WILSON WOULD OWN 256 OF THE COMPANY THAT'S DOWN FROM 438 BEFORE NORTHWEST EMPLOYEES TRADED STOCK FOR 886 MILLION IN WAGE AND BENEFIT CONCESSIONS OVER THREE YEARS EMPLOYEES COULD OWN UP TO 375 BUT THE EQUITY STAKES WOULD BE REDUCED IF A PUBLIC STOCK OFFERING IS SUCCESSSFUL MESSRS CHECCHI AND WILSON WHO TOGETHER PUT UP JUST 40 MILLION FOR THEIR STAKE IN THE CARRIER SAID IT'S IMPOSSIBLE TO TELL HOW THEY WILL DO ON THEIR OWN INVESTMENT IN THE AIRLINE BUT THEY CONTENDED THEY DON'T THINK ABOUT THAT AL AND I HAVE OTHER ASSETS THAT PROVIDE US WITH LIVING EXPENSES SAID MR WILSON WE BOUGHT THIS FOUR YEARS AGO TO BUILD A GREAT COMPANY DESPITE THEIR REDUCED STAKE AND DILUTED POWER ON THE BOARD THE TWO SAID THEY HAVE NO PLANS TO LEAVE THE COMPANY UNDER THE RECENT UNION AGREEMENTS THEY CAN'T SELL THEIR SHARES BEFORE JUNE 15 1997 MR CHECCHI 45 YEARS OLD WHO ONCE WORKED WITH MR WILSON AT MARRIOTT CORP AND WHO LATER WORKED WITH THE BASS BROTHERS INVESTMENT GROUP SAID HE WANTED EMPLOYEES TO OWN A CHUNK OF THE CARRIER ALL ALONG ALTHOUGH THE WAY WE GOT HERE IS NOT THE WAY I WOULD HAVE CHOSEN ASKED IF HE CONSIDERED THEIR PURCHASE OF THE AIRLINE A FAILED BUYOUT MR WILSON WHO IS 53 RESPONDED THE GAME ISN'T OVER YET 9308190022 930819 FEDERAL REPORT FAULTS SEC FOR LATE RELEASE OF FILINGS WASHINGTON THE GENERAL ACCOUNTING OFFICE FOUND THAT THE SECURITIES AND EXCHANGE COMMISSION FAILED TO MAKE A TIMELY RELEASE FOR AT LEAST 16 OF THE MOST TIMESENSITIVE FILINGS IT PROCESSED IN THE FIRST QUARTER OF 1993 THESE DOCUMENTS FILED UNDER THE WILLIAMS ACT AND COMMONLY KNOWN AS 13D AND 14D FILINGS REQUIRE A HOLDER OF MORE THAN 5 OF THE SECURITIES OF A PUBLIC COMPANY TO DISCLOSE THE STAKE AND THE REASON FOR HOLDING IT AS WELL AS ANY CHANGES IN EXCESS OF 1 OR ANY CHANGE OF INTENT TENDER OFFERS ALSO MUST BE DISCLOSED UNDER THE ACT THE FILINGS WHICH THE SEC IS SUPPOSED TO RELEASE WITHIN ONE HOUR OF RECEIPT ARE SENSITIVE IN THAT INFORMATION THEY CONTAIN IS LIKELY TO AFFECT A COMPANY'S STOCK PRICE THE GAO REPORT WAS CRITICAL OF THE PROCESSING OF THE 2388 WILLIAMS ACT FILINGS IN THE QUARTER OF THOSE 16 WERE RELEASED TWO DAYS OR MORE AFTER THEY WERE RECEIVED AND 11 WERE RELEASED THE DAY AFTER RECEIPT ALMOST ALL OF THE FILINGS DISCLOSED LATE WERE MAILED IN AND WEREN'T IMMEDIATELY PASSED ON BY SEC'S MAILROOM STAFF TO ITS DOCUMENTCONTROL UNIT THAT RELEASES FILINGS MOST FILINGS ARE HAND DELIVERED DIRECTLY TO THE UNIT SEC COMMISSIONER MARY SCHAPIRO SAID THE AGENCY HAS TAKEN ACTIONS TO ALLEVIATE THE PROBLEM AND CONSIDERS IT A HIGH PRIORITY TO QUICKLY DISCLOSE TIMESENSITIVE INFORMATION TO THE MARKETS 9308190021 930819 TECHNOLOGY PRICECUTTING AND SAGGING ECONOMIES IN EUROPE BREAK PC MARKET BUBBLE BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL AROUND EUROPE THE STEAM IS LEAKING OUT OF THE ONCEBOOMING 22 BILLION MARKET FOR PERSONAL COMPUTERS JUST ASK THERESE RIEUL IN PARIS SO FAR THIS SUMMER SHE SAYS SAVAGE PRICECUTTING HELPED HER APPLE COMPUTER INC DEALERSHIP SELL AT LEAST 30 MORE COMPUTERS THAN A YEAR EARLIER BUT IT ONLY COLLECTED ABOUT 3 MORE REVENUE THE RESULT AFTER ADDING INCREASED SALES EXPENSES INTO THE EQUATION A LOSS ON EVERY BOX SOLD PEOPLE WANT MORE COMPUTER FOR LESS MONEY AND LONGER TERMS OF PAYMENT SHE SAYS IT JUST TAKES AWAY THE TASTE WE HAVE TO DO OUR JOBS ONLY LAST WINTER EUROPE WAS THE WORLD'S HOTTEST PC MARKET AND A MAINSTAY OF PROFITS FOR SUCH INDUSTRY POWERHOUSES AS APPLE AND DELL COMPUTER CORP THE MAGNITUDE OF THE CHANGE CAN BE SEEN IN THE LATEST QUARTERLY REPORT ON THE EUROPEAN PC MARKET BY THE WALL STREET JOURNAL EUROPE AND DATAQUEST INC A MARKETRESEARCH UNIT OF DUN & BRADSTREET CORP AFTER POSTING STEEP 218 AND 197 GROWTH RATES IN THE PRIOR TWO QUARTERS IN THE SECOND QUARTER THE NUMBER OF PCS SOLD IN EUROPE ROSE BY JUST 112 TO 22 MILLION BECAUSE OF FALLING PRICES INDUSTRY EXECUTIVES SAY REVENUES WERE AT BEST FLAT AND DATAQUEST ESTIMATES THEY MAY ACTUALLY HAVE CONTRACTED BY 44 TO 47 BILLION WORSE DATAQUEST ANALYSTS EXPECT FLAT UNIT SALES THIS QUARTER AND ONLY A MODEST GROWTH IN THE FOURTH QUARTER THUS LAST WINTER'S BOOM TURNS OUT TO HAVE BEEN A BUBBLE SPURRED BY PRICE CUTS AS DEEP AS 76 ON SOME COMMON PC MODELS THERE'S A TREMENDOUS ELASTICITY IN THE PC BUSINESS WITH SALES INFLATING OR DEFLATING AS PRICES FALL OR RISE SAYS CHRISTOPHER FELL HEAD OF DATAQUEST'S EUROPEAN PC UNIT NOW YOU CAN SEE THE BUBBLE IS STARTING TO BURST THE EFFECT IS FILTERING DOWN QUICKLY TO THE INDUSTRY'S BOTTOM LINE SCARRING PROFITS AT USBASED COMPANIES LIKE APPLE COMMODORE INTERNATIONAL LTD AND DELL AS WELL AS AT SUCH EUROPEAN STALWARTS AS GERMANY'S SIEMENS AG AND ITALY'S ING C OLIVETTI & CO THE LATEST BAD NEWS CAME TUESDAY FROM DELL AND HEWLETTPACKARD INC AUSTIN TEXASBASED DELL CITED A WEAK EUROPEAN ECONOMY AS ONE FACTOR BEHIND ITS 757 MILLION SECONDQUARTER NET LOSS WHILE HP SAID EUROPEAN ORDERS GROWTH EASED SIGNIFICANTLY IN ITS LATEST QUARTER THOUGH DELL AND OTHER COMPANIES HAVE SOME PROBLEMS OF THEIR OWN MAKING THE DOUBLEWHAMMY OF INDUSTRYWIDE PRICE WARS AND SLOWING EUROPEAN ECONOMIES IS MAKING LIFE MORE DANGEROUS FOR NEARLY EVERYBODY IN THE MARKET A FEW COMPANIES THOUGH ARE CAPITALIZING SPECTACULARLY ON OTHERS' MISFORTUNES COMPAQ COMPUTER CORP THE COMPANY THAT STARTED THE PC INDUSTRY'S PRICE WAR IN JUNE 1992 LAST MONTH REPORTED A 57 JUMP TO 624 MILLION IN ITS SECONDQUARTER EUROPEAN REVENUE THAT NEARLY DOUBLED ITS MARKETSHARE TO 11 OF PCS SHIPPED IN EUROPE FROM 6 A YEAR EARLIER AND BROUGHT IT CLOSE TO UNSEATING FIRSTRANKED INTERNATIONAL BUSINESS MACHINES CORP WITH ITS 13 MARKETSHARE WE HAVE THE RIGHT PRODUCTS AT THE RIGHT PRICE IS HOW ANDREAS BARTH HEAD OF COMPAQ'S EUROPEAN OPERATIONS EXPLAINS HIS COMPANY'S RECENT SUCCESS IN TRUTH FORTUNES CHANGE FAST IN THIS CUTTHROAT INDUSTRY ONLY 18 MONTHS AGO COMPAQ'S MARKET SHARE AND PROFITS WERE FALLING AND ANALYSTS WERE CALLING IT A HASBEEN NOW THE SAME ANALYSTS ARE HAILING ITS SUCCESS AT STARTING THE PRICE WAR AND WINNING IT WITHOUT SACRIFICING PROFIT MARGINS OR ITS HIGHQUALITY REPUTATION BUT COMPAQ ISN'T THE ONLY BENEFICIARY OF THE MARKET MAYHEM IBM AND HP STILL MANAGED TO INCREASE THEIR SHARES OF EUROPEAN SHIPMENTS AND REVENUES AND AS A GENERAL RULE THEY AND OTHER BIGBRAND MANUFACTURERS OF IBMCOMPATIBLE PCS FARED BETTER THAN DID COMPANIES SELLING NONSTANDARD EQUIPMENT FOR THOSE COMPANIES HURT BY THE UPHEAVAL EACH HAS ITS OWN RECOVERY PLAN OLIVETTI'S BASIC STRATEGY FOR INSTANCE IS TO END ITS LOSSES NEXT YEAR IN PART BY GIVING ITS CUSTOMERS MORE REASONS TO BUY ITS PCS BESIDES LOW PRICE THAT MEANS EMPHASIZING FANCIER HIGHERPRICE AND HIGHERPROFIT MODELS SUCH AS NOTEBOOK COMPUTERS AND HIGHPOWER DESKTOP PCS AND DELL'S PLAN SAYS MARTIN SLAGTER A DELL VICE PRESIDENT FOR EUROPE INCLUDES REORGANIZING ITS OPERATIONS TO CUT COSTS AND RESTORE PROFITS FROM THE MACROECONOMIC POINT OF VIEW THE MARKET IS SOFTENING THERE'S CONSOLIDATION AND SOME COMPANIES ARE LITERALLY FALLING OVER DELL'S MR SLAGTER SAYS BUT FOR THE LUCKY OR CLEVER HE ADDS THERE ARE STILL STRONG GROWTH OPPORTUNITIES IN EUROPE 9308190020 930819 BUSINESS BRIEF MARRIOTT EXTENDS BONDSWAP DEADLINE AS LAGGING RESPONSE DELAYS SPLITUP NEW YORK MARRIOTT CORP IS PRESSING TO WRAP UP A 153 BILLION BOND EXCHANGE OFFER THAT IS PROVING TO BE MORE DIFFICULT THAN EXPECTED THE WASHINGTON DC LODGING AND FOOD SERVICE COMPANY WHICH IS IN THE PROCESS OF SPLITTING INTO TWO PARTS SAID IT EXTENDED THE EXPIRATION DATE FOR THE EXCHANGE OFFER BECAUSE FEWER HOLDERS THAN EXPECTED TURNED IN BONDS BY THE AUG 17 DEADLINE THE NEW DEADLINE IS 5 PM EDT AUG 20 ANALYSTS SUGGEST MANY INDIVIDUAL HOLDERS MAY HAVE BEEN PUT OFF BY THE COMPLICATED EXCHANGE TERMS AND SIMPLY FAILED TO RESPOND WHILE OTHERS MAY HAVE CONCLUDED THAT IF THEY HOLD OUT THEY WILL BE OFFERED BETTER TERMS A COMPANY SPOKESMAN SAID THAT MARRIOTT OFFICIALS ARE PLEASED WITH THE RESULTS SO FAR AND THAT THE PLAN TO SPLIT MARRIOTT INTO TWO COMPANIES ONE OWNING REAL ESTATE AND THE OTHER MANAGING HOTELS REMAINS ON TRACK AS OF THE TUESDAY DEADLINE ABOUT 12 BILLION OR 80 OF THE NOTES AND DEBENTURES ELIGIBLE FOR THE EXCHANGE OFFER WERE TENDERED THE COMPANY HAS SAID IT SEEKS 85 OF THE SECURITIES THE COMPANY ALSO FELL SHORT OF ITS GOAL TO RECEIVE AT LEAST 51 OF ANY SINGLE SERIES OF BONDS HOLDERS HAVE TURNED IN A MERE 13 OF ONE SERIES THE 13 MILLION SERIES I DUE 1995 CARRYING A 9 COUPON OTHER SERIES ESPECIALLY THOSE WITH LONG MATURITIES HAD RETURN RATES AS HIGH AS 96 UNDER THE SWAP PROGRAM DESIGNED TO MOLLIFY INVESTORS IRATE OVER THE SPLITUP OF THE COMPANY INTO A HIGHGROWTH MANAGEMENT ARM AND A MORESPECULATIVE REALESTATE COMPANY THE BONDS WILL PAY AN EXTRA PERCENTAGE POINT OF ANNUAL INTEREST BUT OTHER FEATURES SUCH AS EXTENDED MATURITIES MEAN THAT MANY SHORTTERM DEBTHOLDERS WOULD FIND THE OFFER LESS ATTRACTIVE THAN WOULD HOLDERS OF LONGTERM DEBT SAYS MAX HOLMES DIRECTOR OF CORPORATE BOND RESEARCH AT SALOMON BROTHERS THE PROVISIONS EXPLAINED IN A 200PAGE PROSPECTUS MAY HAVE CONFUSED SOME PEOPLE MR HOLMES SAYS NOTING THAT MARRIOTT TRADITIONALLY ATTRACTED LARGE INDIVIDUAL OWNERSHIP BECAUSE IT WAS A NAMEBRAND INVESTMENTGRADE COMPANY THE LOW RETURN RATE COULD CAUSE THE COMPANY SOME HEADACHES MR HOLMES SAYS THE ISSUE WITH A 13 RETURN RATE CONTAINS COVENANTS THAT RESTRICT MARRIOTT'S ABILITY TO CHANGE COLLATERAL WITHOUT 51 OF THE BONDHOLDERS APPROVING SUCH A CHANGE THE ISSUE IS NONCALLABLE SO MARRIOTT CAN'T SOLVE THE PROBLEM BY REDEEMING IT EARLY MR HOLMES SAYS NICK HILL THE MARRIOTT SPOKESMAN WOULDN'T ELABORATE ON THE COMPANY'S STRATEGY SHOULD THE BONDHOLDERS CONTINUE TO HOARD THE ISSUE MARRIOTT STILL FACES AT LEAST ONE BONDHOLDER LAWSUIT RELATED TO ITS OCT 5 ANNOUNCEMENT TO SPIN OFF ITS MORE PROMISING HOTEL MANAGEMENT BUSINESS FROM THE HEAVILY LEVERAGED REAL ESTATE ARM THE SUIT CONTENDS THAT MARRIOTT SHOULD HAVE DISCLOSED ITS SPLITUP PLAN LAST YEAR WHEN IT SOLD TWO BOND ISSUES 9308190019 930819 MICROGENESYS AIDS DRUG TO ENTER PHASE III TRIAL MERIDEN CONN MICROGENESYS INC SAID ITS VAXSYN VACCINE FOR SLOWING THE PROGRESSION OF AIDS WILL ENTER A PHASE III TRIAL TO BE CONDUCTED BY THE WALTER REED ARMY INSTITUTE OF RESEARCH BY YEAR'S END THE TRIAL FOR VAXSYN INFURIATED THE FEDERAL HEALTH ESTABLISHMENT AFTER CONGRESS APPROPRIATED 20 MILLION FOR THE LARGESCALE TRIAL FOLLOWING A TWOYEAR LOBBYING EFFORT BY THE COMPANY LAST YEAR THE DIRECTOR OF THE NATIONAL INSTITUTES OF HEALTH BERNADINE HEALY CHARGED THAT THE LOBBYISTDIRECTED RESEARCH SET A DANGEROUS PRECEDENT FOR BIOMEDICAL RESEARCH PANELS OF SCIENTISTS USUALLY DECIDE WHICH DRUGS TO TEST THE CLINICAL TRIAL WILL INVOLVE 5000 TO 10000 PERSONS IN THE US INFECTED WITH THE AIDS VIRUS MICROGENESYS SAID PARTICIPANTS WILL RECEIVE SEVERAL INJECTIONS OF VAXSYN EACH YEAR AND THEIR PROGRESS WILL BE FOLLOWED FOR AS LONG AS FOUR YEARS VAXSYN IS THE TRADE NAME FOR THE COMPANY'S VERSION OF GP160 9308190017 930819 BUSINESS BRIEF TRIZEC CORP VENTURE WITH MARKBOROUGH GETS 3YEAR LOAN EXTENSION TRIZEC CORP CALGARY ALBERTA AND MARKBOROUGH PROPERTIES INC TORONTO SAID A BANKING SYNDICATE AGREED TO A THREEYEAR EXTENSION OF A CONSTRUCTION LOAN ON THE COMPANIES' JOINT OFFICETOWER PROJECT THAT WAS STALLED BY THE SLUMP IN THE COMMERCIAL REALESTATE MARKET UNDER THE AGREEMENT THE COMPANIES SAID THEY WILL REPAY THE BANKS 50 MILLION CANADIAN DOLLARS US38 MILLION EACH THE DUE DATE ON THE BALANCE OF C200 MILLION WAS EXTENDED TO 1997 FROM NEXT FEBRUARY THE REALESTATE DEVELOPERS SAID WILLARD L'HEUREUX TRIZEC'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID CONSTRUCTION OF THE TWOMILLIONSQUAREFOOT BAY ADELAIDE CENTRE IN TORONTO WILL RESUME WHEN DEMAND FOR OFFICE SPACE IMPROVES IT CERTAINLY WON'T BE THE SPECULATIVE BUILDING IT WAS IN THE 1980S HE SAID THE ONLY COMPLETED PART OF THE PROJECT IS THE UNDERGROUND PARKING GARAGE THE PARTIAL DEBT REPAYMENT WON'T AFFECT TRIZEC'S PROPOSED RESTRUCTURING OF NEARLY C2 BILLION OF ITS OBLIGATIONS MR L'HEUREUX SAID THE REPAYMENT WILL BE MADE BY A TRIZEC OPERATING SUBSIDIARY THAT ISN'T PART OF THE RESTRUCTURING HE SAID 9308190016 930819 THE NEW TAX LAW SEARCHING FOR SHELTER HEARD ON THE STREET MASTER LIMITED PARTNERSHIPS REGAIN FANS THANKS TO SPECIAL TREATMENT OF PAYOUTS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AFTER FIVE YEARS OF NEAROBLIVION MASTER LIMITED PARTNERSHIPS ARE BACK IN THE SPOTLIGHT THANKS TO THE NEW TAX LAW AS YOUR BROKER WILL BE QUICK TO REMIND YOU CAPITAL GAINS ARE TAXED AT A MAXIMUM OF 28 BUT THE JUSTPASSED CLINTON BUDGET BILL TAXES ORDINARY INCOME AT AS MUCH AS 396 THAT MAKES MLPS INTRIGUING WITH THEIR ODDBALL STRUCTURE THAT CONVERTS A PORTION OF CURRENT INCOME INTO LESSTAXABLE CAPITAL GAINS SOME MLPS ALSO LOOK LIKE GOOD BUYS ON FUNDAMENTAL GROUNDS MONEY MANAGERS SAY BUT ANYONE THINKING OF PLAYING THE MLP GAME SHOULD UNDERSTAND TWO THINGS RIGHT OFF THE BAT FIRST YOUR TAX RETURN WILL GET A LOT MORE COMPLICATED SECOND MOST OF THE TAXES YOU SAVE NOW WILL COME DUE LATER WHEN YOU SELL YOUR MLP SHARES FURTHERMORE INVESTORS SHOULDN'T GET SO EXCITED ABOUT THE TAX WRINKLE THAT THEY FORGET TO DO THEIR HOMEWORK ON THE UNDERLYING BUSINESS FOLKS WHO OWN MAUNA LOA MACADAMIA PARTNERS GOT A FORCIBLE REMINDER OF HOW IMPORTANT THIS CAN BE MAUNA LOA IS AN MLP THAT PRODUCES MACADAMIA NUTS IN HAWAII AT MIDYEAR LAST YEAR THE SHARES FETCHED 7 1/2 YESTERDAY THEY WERE GOING FOR 4 A 466 LOSS BAD WEATHER IN HAWAII FIERCE COMPETITION FROM BRAZIL AND A RECESSION THAT SPOILED PEOPLE'S APPETITES FOR DELICACIES WERE SOME OF THE REASONS ANY TAX ADVANTAGES PROBABLY SEEM TO MAUNA LOA INVESTORS LIKE SCANT CONSOLATION OTHER MLPS HAVE FARED FAR BETTER FOR EXAMPLE SHARES OF CEDAR FAIR WHICH OPERATES AMUSEMENT PARKS IN OHIO MINNESOTA AND PENNSYLVANIA HAVE RISEN 494 SINCE THE MIDDLE OF LAST YEAR MORE THAN TWO DOZEN MLPS ARE LISTED ON THE NEW YORK STOCK EXCHANGE WHERE THEY CHANGE HANDS JUST LIKE OTHER STOCKS FOR THE MOST PART MLPS ARE INCOME INVESTMENTS THEY ARE A SURROGATE FOR MUNICIPAL BONDS SAYS WALTER KASS PRESIDENT OF CURATORS CAPITAL MANAGEMENT IN NEW YORK HE PREFERS MLPS TO BONDS BECAUSE THEIR PRICES DON'T SWING WITH INTEREST RATES AS MUCH AS BOND PRICES DO AND BECAUSE MLPS HAVE SOME THOUGH USUALLY LIMITED POTENTIAL FOR GROWTH AS THE UNDERLYING BUSINESS GROWS ROBERT STOVALL PRESIDENT OF STOVALL/TWENTYFIRST ADVISERS IN NEW YORK ALSO LOOKS KINDLY ON MLPS YOU HAVE THIS SOCKO CURRENT RETURN HE SAYS AND MUCH OF IT IS A RETURN OF CAPITAL I LEAVEN THE LOAF WITH THESE LIMITED PARTNERSHIPS BECAUSE OF THE HIGH YIELD AND THE TAXFREE NATURE OF SOME OF THE DISTRIBUTIONS AS THE ACCOMPANYING TABLE SHOWS MLPS GENERALLY FEATURE GENEROUS CASHDISTRIBUTION YIELDS BUT THESE FAT DISTRIBUTIONS AREN'T DIRECTLY COMPARABLE TO DIVIDENDS ON ORDINARY STOCK PART OF AN MLP DISTRIBUTION REPRESENTS A TAXFAVORED RETURN OF THE INVESTOR'S OWN CAPITAL BECAUSE NOT ALL THE DISTRIBUTION IS CONSIDERED INCOME INVESTORS NEED NOT PAY CURRENT INCOME TAX ON THE FULL AMOUNT OF THE PAYOUT OFTEN 40 TO 70 OF THE DISTRIBUTION ISN'T SUBJECT TO TAX IN THE YEAR IT IS RECEIVED MLPS CAN TRIGGER HIGH TAXES WHEN SOLD HOWEVER THE INVESTOR'S BASIS THE STARTING PRICE IN COMPUTING A CAPITAL GAIN IS REDUCED BY THE TAX BENEFITS RECEIVED OVER THE YEARS THAT MAKES FOR A BIGGER TAXABLE GAIN SUPPOSE YOU BOUGHT AN MLP FOR 24 A SHARE YOU THEN RECEIVED DISTRIBUTIONS OF 2 A YEAR FOR 10 YEARS 50 TAXDEFERRED A TOTAL OF 20 WITH 10 OF THAT AMOUNT COUNTED AS A RETURN OF YOUR OWN CAPITAL WHEN YOU SELL YOUR MLP SHARES LET'S SAY THE SHARE PRICE HAS RISEN TO 31 ON ORDINARY STOCK YOUR CAPITAL GAIN WOULD BE 7 A SHARE BUT HERE YOUR BASIS IS REDUCED TO 14 THE INITIAL 24 MINUS THE 10 SO YOUR CAPITAL GAIN WOULD BE 17 A SHARE A LOT OF PEOPLE FEEL LIKE THEIR TAXABLE PROFIT SHOULD ONLY BE 7 SAYS ROBERT WILLENS A TAX AND ACCOUNTING ANALYST AT LEHMAN BROTHERS THEY FORGET THEY GOT ANOTHER 10 OR SO IN RETURN OF CAPITAL OVERALL HE SAYS THE TAX ADVANTAGE OF MLPS IS NOT GREAT NOT TRIVIAL SOMEWHERE NORTH OF THE MIDDLE YOU'RE ACHIEVING DEFERRAL YOU'RE NOT ACHIEVING ELIMINATION OF TAXES CAPITAL GAINS AS NOTED ARE TAXED AT A LOWER RATE THAN REGULAR INCOME AND THE GAIN ISN'T TAXED AT ALL UNTIL THE INVESTOR SELLS BUT AS CONGRESS SEARCHES FOR NEW REVENUE THERE ARE OCCASIONAL RUMBLINGS ABOUT ELIMINATING ALL TAX ADVANTAGES OF CAPITAL GAINS THAT OF COURSE WOULD BE POISON FOR MLP HOLDERS MR KASS POINTS OUT THAT MANY WEALTHY INVESTORS AFTER ENJOYING THEIR TAXSHELTERED INCOME GIVE AWAY THEIR MLP SHARES AS A CHARITABLE CONTRIBUTION THAT TACTIC SOFTENS THE TAX PUNCH AT THE END UNDER LEGISLATION CONGRESS PASSED IN 1987 MANY MLPS MUST CONVERT TO CONVENTIONAL CORPORATIONS AS OF DEC 31 1997 ENERGY COMPANIES AND REALESTATE COMPANIES HOWEVER WILL BE PERMITTED TO REMAIN MLPS IF THEY CHOOSE FOR PEOPLE WHO WANT WHAT MLPS PROVIDE WHICH ONES MOST DESERVE CONSIDERATION HERE ARE A FEW FAVORITES OF MONEY MANAGERS AND BROKERAGE HOUSES ELAINE HAHN A SAN FRANCISCO MONEY MANAGER OWNS SANTA FE PACIFIC PIPELINE PARTNERS AND LAKEHEAD PIPE LINE PARTNERS PRIMARILY BECAUSE THEY GENERATE INCREASING CASHDISTRIBUTION PAYOUTS BY CONTRAST SHE NOTES SOME MLPS PRESIDE OVER A DWINDLING POOL OF FOREST ACREAGE OR OILANDGAS DEPOSITS MR KASS OF CURATORS CAPITAL OWNS FOUR MLPS CEDAR FAIR PLUM CREEK TIMBER DIAMOND SHAMROCK OFFSHORE PARTNERS AND OPPENHEIMER CAPITAL HIS FAVORITE IS CEDAR FAIR THE AMUSEMENTPARK OPERATOR WILL HAVE TO CONVERT TO A REGULAR CORPORATION BY THE START OF 1998 BUT MR KASS SAYS THAT SHOULDN'T HURT THE STOCK BECAUSE HE THINKS CEDAR FAIR CAN PRODUCE 15 ANNUAL EARNINGS GROWTH HE'S IMPRESSED THAT THE COMPANY'S MANAGERS ARE FINANCIALLY REWARDED WHEN THEY INCREASE THE DISTRIBUTION TO UNIT HOLDERS AND HE THINKS THERE'S A FAIR CHANCE CEDAR FAIR WILL EVENTUALLY SELL OUT TO A LARGER ENTERTAINMENT COMPANY TED SEMEGRAN A LEHMAN BROTHERS CHEMICAL ANALYST IS RECOMMENDING THREE MLP FERTILIZER PRODUCERS AGRICULTURAL MINERALS ARCADIAN PARTNERS AND FREEPORTMCMORAN RESOURCE PARTNERS MR SEMEGRAN SAYS THE FIRST TWO HAVE STRONG COVERAGE OF THEIR CASH DISTRIBUTIONS BY CASH FLOW AND RESERVES FREEPORT IS MORE SPECULATIVE BUT COULD BENEFIT FROM AN ANTICIPATED RISE IN THE PRICE OF PHOSPHATE FERTILIZER THE RECENT FLOODING IN THE MIDWEST IS ONLY A CONTRIBUTING FACTOR IN THE RECOMMENDATIONS MR SEMEGRAN SAYS JOSEPH M MURPHY A MARKETING EXECUTIVE AT LEHMAN BROTHERS WHO WILL SOON MOVE TO SMITH BARNEY SHEARSON IN A CORPORATE REORGANIZATION HAS SEVEN FAVORITES FOR HIGH YIELD WITH MAXIMUM CURRENT TAX DEFERRAL HE RECOMMENDS TEPPCO PARTNERS AND ARCADIAN PARTNERS FOR PEOPLE WHO WANT TO SEE THEIR DISTRIBUTIONS GROW OVER THE YEARS HE FAVORS ALLIANCE CAPITAL OPPENHEIMER CAPITAL AND ENRON LIQUIDS PIPELINE FOR THOSE WHO WANT BOTH HE SUGGESTS AGRICULTURAL MINERALS OR LAKEHEAD PIPE LINE PARTNERS MR STOVALL THE MONEY MANAGER OWNS SEVERAL MLPS INCLUDING TWO FERTILIZER PRODUCERS AGRICULTURAL MINERALS AND FREEPORTMCMORAN RESOURCE PARTNERS AMONG HIS REASONS HE THINKS INDIA AND CHINA WHICH HAVE CURTAILED FERTILIZER PURCHASES OF LATE MAY EXPAND THEIR ORDERS IN THE NEXT YEAR OR TWO MR STOVALL USED TO OWN RAYONIER TIMBERLANDS AND PLUM CREEK TIMBER BUT HE HAS SOLD ALL OF THE FORMER AND PART OF THE LATTER RAYONIER HE NOTES IS A LIQUIDATING SITUATION PLUM CREEK HAS SOME GROWTH POTENTIAL BUT HAS MOVED UP IN PRICE HE GOT CAUGHT IN THE DOWNDRAFT IN MAUNA LOA MACADAMIA PARTNERS IN RETROSPECT HE RUEFULLY SAYS ITS STOCK SYMBOL NUT MAY DESCRIBE INVESTORS WHO HELD IT BUT AT TODAY'S DEPRESSED PRICE OF 4 HE SAYS IT'S AN INTERESTING SPECULATION MASTER LIMITED PARTNERSHIPS GENERALLY PROVIDE HIGH CURRENT INCOME MUCH OF IT TAX DEFERRED BUT PART OF AN MLP'S DIVIDEND IS A RETURN OF THE INVESTOR'S OWN CAPITAL AND THE INVESTMENT MAY TRIGGER HIGH TAXES WHEN IT IS EVENTUALLY SOLD MLPS ARE IN MANY INDUSTRIES AS THIS SAMPLER OF A DOZEN SHOWS 9308190015 930818 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 9308190014 930819 WHO'S NEWS DIED ROBERT C MAYNARD 56 FORMER EDITOR AND PUBLISHER OF THE OAKLAND TRIBUNE TUESDAY IN OAKLAND CALIF OF CANCER 9308190013 930819 FOREIGN EXCHANGE YEN FALLS A BIT AHEAD OF TOKYO MEETING ON THURSDAY AND DOLLAR ENDS MIXED BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK WITH A SPECIAL JAPANESE CABINET MEETING THURSDAY SET TO DISCUSS THE YEN'S RISE THE MARKET BACKED OFF THE YEN WEDNESDAY LEAVING THE JAPANESE CURRENCY LOWER ACROSS THE BOARD THE DOLLAR MEANWHILE ENDED MIXED UP AGAINST THE YEN BUT LOWER AGAINST EUROPEAN CURRENCIES WHICH WERE BOUGHT MORE ENTHUSIASTICALLY AGAINST THE YEN LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 10160 YEN UP FROM 10110 YEN LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 16800 MARKS DOWN FROM 16931 MARKS STERLING WAS TRADING AT 15170 UP SHARPLY FROM 14880 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10175 YEN AND AT 16830 MARKS THE YEN FELL AS INVESTORS COVERED SHORT POSITIONS BEFORE THURSDAY'S MEETING BETWEEN NEW PRIME MINISTER MORIHIRO HOSOKAWA AND VARIOUS CABINET MINISTERS RESPONSIBLE FOR ECONOMIC AFFAIRS THE SESSION IS EXPECTED TO ADDRESS THE EXPLOSIVE RISE OF THE YEN WHICH HAS CUT INTO JAPANESE EXPORTERS' PROFITS AND HELPED TO EXTEND THE COUNTRY'S ECONOMIC SLOWDOWN THERE HAS BEEN SOME SPECULATION THAT THE NEW GOVERNMENT WILL TRY TO COUNTER THE YEN'S RISE WITH EITHER AN OFFICIAL INTERESTRATE CUT OR METHODS TO REDUCE JAPAN'S ENORMOUS TRADE SURPLUS BUT BILL BERTHA A VICE PRESIDENT AND CHIEF DEALER AT MELLON BANK IN PITTSBURGH SAID THE MARKET DIDN'T REALLY THINK THURSDAY'S CAUCUS WOULD PRODUCE MEASURES THAT WOULD DEPRESS THE YEN YEN SELLING WEDNESDAY HE SAID WAS MORE CAUTIOUS POSITION ADJUSTMENT MORE SQUARING UP IF ANYONE REALLY FELT SOMETHING WAS GOING TO COME OUT OF THE MEETING THE YEN WOULD BE WEAKER THAN IT IS MR BERTHA SAID THE JAPANESE GOVERNMENT HAS FEW WEAPONS IT CAN BRING AGAINST THE YEN'S STRENGTH ALREADY ALMOST EVERY TOP OFFICIAL IN BOTH THE CURRENT AND PREVIOUS ADMINISTRATIONS HAS WEIGHED IN WITH CONDEMNATIONS OF THE YEN'S RISE ON WEDNESDAY EVEN BANK OF JAPAN GOVERNOR YASUSHI MIENO WHO USUALLY TAKES THE POSITION THAT IT IS INAPPROPRIATE FOR HIM TO COMMENT ON CURRENCY LEVELS JOINED IN THE CHORUS SAYING THE YEN'S APPRECIATION HAD GONE TOO FAR CARL FORCHESKI A TRADER AT CHEMICAL BANK IN NEW YORK SAID THAT ONLY THREE EVENTS WOULD BE LIKELY TO HALT THE YEN'S RISE NOW MEANINGFUL ACTION BY JAPAN TO CUT ITS TRADE SURPLUS A SUBSTANTIAL DECLINE IN THE TOKYO STOCK MARKET OR COMMENTS FROM CLINTON ADMINISTRATION OFFICIALS THAT THE DOLLAR HAD WEAKENED SUFFICENTLY AGAINST ITS JAPANESE COUNTERPART THE NEW JAPANESE GOVERNMENT MAY TRY TO COME UP WITH SOME KIND OF PROGRAM TO STIMULATE DOMESTIC DEMAND BUT I'M NOT SURE IF THAT'S ENOUGH TO TURN DOLLARYEN AROUND HE SAID MORE INTERVENTION BY THE JAPANESE CENTRAL BANK WHICH ALREADY HAS BOUGHT SEVERAL BILLION OF DOLLARS THIS MONTH IN AN ATTEMPT TO DAMP THE YEN'S RISE IS ALSO UNLIKELY TO MAKE MUCH DIFFERENCE MR FORCHESKI SAID ANOTHER FACTOR INFLUENCING YEN LEVELS WAS ANTICIPATION OF US MERCHANDISE TRADE DATA FOR JUNE TO BE RELEASED THURSDAY A DOW JONES CAPITAL MARKETS SURVEY OF ECONOMISTS ESTIMATES THE US TRADE DEFICIT WIDENED MARGINALLY IN JUNE TO 852 BILLION COMPARED WITH 837 BILLION IN MAY AND 659 BILLION IN JUNE 1992 IRONICALLY THE NUMBER WILL BE SLIGHTLY INFLATED BY THE HIGHER YEN WHICH INCREASES THE PRICES OF JAPANESE GOODS EXPORTED TO THE US MELLON BANK'S MR BERTHA SAID THE MARKET EXPECTS THE TRADE DATA TO BE BEARISH FOR THE DOLLAR PEOPLE ARE SELLING THE YEN BECAUSE OF THIS MEETING BUT THEY AREN'T GOING TOO FAR WITH IT BECAUSE OF THIS TRADE NUMBER HE SAID 9308190012 930819 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO SOFTWARE GIVEAWAYS GAIN ADHERENTS AS WAY TO SKIRT A RETAIL BOTTLENECK SEVERAL SOFTWARE FIRMS DO SOME GIVING OF THEIR OWN IN THE WAKE OF A POPULAR COMPUTER ASSOCIATES PROMOTION WHICH LAUNCHED A 6999 FINANCIAL SOFTWARE PACKAGE BY GIVING AWAY AT LEAST A MILLION COPIES CENTRAL COMPUTER PRODUCTS FILLMORE CALIF OFFERS A 6995 ACCOUNTING PACKAGE FOR A 695 SHIPPING AND HANDLING CHARGE INTERNATIONAL SOLUTIONS OF CANTON MASS OFFERS ITS NEW 49 PERSONAL INFORMATION MANAGER SOFTWARE FOR A 12 FEE THE MANEUVER CREATES FAVORABLE WORDOFMOUTH AND SIDESTEPS SNAGS IN GETTING A PRODUCT TO RETAILERS WHEN THE COMPETITION IS ENTRENCHED SAYS JEFFREY TARTER OF SOFTLETTER THE PROMOTION BY COMPUTER ASSOCIATES ISLANDIA NY SPAWNED A MILLION ORDERS IN SEVEN WEEKS AND SAVED ON LAUNCH AND MARKETING COSTS SAYS MR TARTER A 695 SHIPPING FEE ALSO COVERED PRODUCTION COSTS THE PROMOS LET THE FIRMS QUICKLY CREATE A BASE TO WHICH THEY CAN SELL UPGRADES AND OTHER PRODUCTS SAYS JOANNA TAMER OF CONSULTANT SOS INC SKIN DEEP SPORTS FANS FIND NOVEL EXPRESSIONS OF TEAM DEVOTION SPORTS LOGOS POP UP IN 24 TEMPORARY TATTOOS AND 8 HAIRCUTS CATERING TO FANS WHO WEAR THEIR HEARTS ON MORE THAN THEIR SLEEVES HIGHGATE PRODUCTS INC IN DALLAS SAYS ITS SPORTS TATTOO LINE BEGUN LAST YEAR WILL TOTAL 4 MILLION OR 20 OF '93 SALES IT HOLDS LICENSES FROM UNIVERSITIES AS WELL AS FROM SUCH PROFESSIONAL CLUBS AS THOSE IN THE NATIONAL FOOTBALL LEAGUE JUST TOYS INC IN NEW YORK NARROWED ITS TEMPORARY TATTOO LINE TO NFL LOGOS AND SAW SALES RISE MEANWHILE SAN FRANCISCO'S SUPERCUTS INC HAIRCARE CHAIN FEATURES CUTS THAT SHAVE EMBLEMS OF HOT BASEBALL TEAMS ON THE HEAD A TOMAHAWKCUT PROMO DURING THE BRAVES' '92 WORLD SERIES RUN BOOSTED SALES IN ATLANTA ABOUT 35 LAST SEPTEMBER AND OCTOBER THE CHAIN HAS HAIRCUT DEALS THIS YEAR WITH THE BRAVES FLORIDA MARLINS AND COLORADO ROCKIES FANS LOOK FOR MORE WAYS TO GET CREATIVE SAYS SUPERCUTS' GREG WOOD SMALL IS BEAUTIFUL CONVENTION BUREAUS WORK AT WOOING COMPANY MEETINGS VISITORS BUREAUS ACCUSTOMED TO LURING HUGE CONVENTIONS ADOPT NEW TACTICS TO SNARE ANNUAL AND SALES MEETINGS AS WELL THE FOCUS ON SMALLER GATHERINGS COMES AS A TRULY OVERBUILT HOTEL MARKET INTENSIFIES PRESSURE TO SPUR BUSINESS SAYS GEORGE KIRKLAND PRESIDENT OF LOS ANGELES'S BUREAU TO MORE EFFICIENTLY REACH CORPORATE CLIENTS LOS ANGELES PLANS TO SET UP A TELEMARKETING CENTER IN EARLY '94 NEW YORK LAUNCHES A DIRECT MAIL PACKAGE THAT INCLUDES A TABLE SHOWING VALUE PRICE PERIODS FOR EVERY HOTEL THROUGH JUNE '94 THE WILMINGTON DEL OFFICE CREATES A DISPLAY THAT STRESSES THE NUMBER 499 WE SAY WE'RE THE BEST MEETING PLACE FOR UP TO 499 PEOPLE SAYS DANIEL BOCKOVER EXECUTIVE DIRECTOR ATLANTA'S BUREAU MEANWHILE TARGETS PLANNERS FOR SMALL GOVERNMENT MEETINGS FRATERNITIES AND LABOR UNIONS IN CITIES WITHIN A TWOHOUR FLIGHT GALVESTON CLAIMING A SMALL TRIAL BACKLOG URGES TEXAS LAWYERS TO FILE THEIR SUITS IN US DISTRICT COURT THERE OUTSIDERS GAIN MORE GROUND SAYS THE CONFERENCE BOARD IN NEW YORK OUTSIDE DIRECTORS COMPRISED A BOARD MAJORITY IN 94 OF MANUFACTURING FIRMS POLLED IN '92 COMPARED WITH 86 IN '89 AND 71 IN '72 A PHANTOM PUBLICIST FOR SUPERMAN RILES DC COMICS A NEWS RELEASE LAST WEEK TOUTED THE EXPECTED INVESTMENT VALUE OF A NEW COMIC BOOK ISSUE IN WHICH THE MAN OF STEEL KILLED IN '92 MAKES A COMEBACK BUT DC COMICS WHICH UNVEILS THE ISSUE TODAY DIDN'T WRITE THE RELEASE THE BOGUS MAILING IS LIKELY THE WORK OF A DEALER WHO BOUGHT A LOT OF COPIES AND WANTS TO STIR DEMAND SAYS A SPOKESWOMAN MONEY GROWS ON TREES NEW YORK HOPES AS ITS CITY PARKS AND RECREATION DEPARTMENT PLANTS AN 11ACRE NURSERY TO TRIM LANDSCAPING COSTS IT EXPECTS TO SELL CITYGROWN SHRUBS TO OTHER AGENCIES AT PRICES 1020 BELOW THOSE OF PRIVATE GROWERS A TRASH TROVE OF NONSODA BOTTLES SHOWS UP GAPS IN DEPOSIT LAWS POPULARITY OF ICED TEAS AND FRUITFLAVORED DRINKS WORRY RECYCLING ADVOCATES BOTTLES OF SUCH DRINKS AREN'T COVERED BY DEPOSIT LAWS PASSED IN THE '70S AND '80S WHEN FEW NONSODA DRINKS WERE SOLD IN SINGLESERVE BOTTLES OF 10 DEPOSIT STATES ONLY MAINE REQUIRES DEPOSITS ON BOTTLES OF NONCARBONATED BEVERAGES THERE'D BE A LOT MORE DESIRE TO RETURN BOTTLES IF THERE WERE A DEPOSIT SAYS JOHN DAVIES OF THE UNIVERSITY OF OREGON'S CAMPUS RECYCLING DEPARTMENT ABOUT 24 STATES MAY INTRODUCE DEPOSIT BILLS BY NEXT YEAR WHICH BACKERS SAY DETER LITTERING AND PROMOTE RECYCLING MANY CONSIDER INCLUDING NONSODA BOTTLES SAYS CONTAINER RECYCLING INSTITUTE IN WASHINGTON MEANWHILE THE UNIVERSITY OF OREGON HAS A STOPGAP SOLUTION IT PERSUADED THE EUGENE DISTRIBUTOR OF SNAPPLE DRINKS POPULAR ON CAMPUS TO SUPPLY BINS AND COLLECT BOTTLES THE RECYCLING PEOPLE WERE GOING TO FORCE A BOYCOTT SAYS CAL MORGAN OF PREMIER DISTRIBUTORS INC A SNAPPLE BEVERAGE CORP SPOKESMAN CALLS DEPOSIT LAWS THE COSTLIEST OPTION FOR RETAILERS AND CONSUMERS BRIEFS MISSION IMPOSSIBLE A BOOK ON THE HEAD OF COMPUTER FIRM DATAFLEX CORP IS CALLED HOW TO MAKE A BUCK AND STILL BE A DECENT HUMAN BEING A FOOD POISONING TOME IS DUBBED FOOD SEX AND SALMONELLA BECAUSE EATING IS TO THE ENVIRONMENT WHAT SEX IS TO HUMAN INTIMACY SAYS ITS AUTHOR 9308190011 930819 PEPPERAND SALT RIGHT AT THE POVERTY LEVEL THE EARTH STILL TWIRLS UPON ITS AXIS BREAKDOWN OF TRADE TALKS 9308190010 930819 CORRECTIONS & AMPLIFICATIONS CROSBY SECURITIES LTD SCHRODERS PLC SALOMON BROTHERS INC AND NIKKO SECURITIES CO ARE ACTING AS INTERNATIONAL SELLING AGENTS IN A SHARE OFFERING BY PT BARITO PACIFIC TIMBER OF INDONESIA THEIR ROLE WAS INCORRECTLY DESCRIBED AS BEING INTERNATIONAL UNDERWRITERS OF THE OFFERING IN AN ARTICLE YESTERDAY CALDOR CORP ASSIGNED THE BROADCAST PORTION OF ITS ADVERTISING TO STAMFORD CONN AGENCY SCAROS & CASSELMAN RETAINING THE PRINT PORTION INHOUSE AN ITEM IN MONDAY'S ADVERTISING COLUMN DIDN'T MAKE THE DISTINCTION BETWEEN BROADCAST AND PRINT ADS NEXTEL COMMUNICATIONS INC HAS SOLD 525855000 FACE AMOUNT OF SENIOR REDEEMABLE DISCOUNT NOTES DUE 2003 RAISING GROSS PROCEEDS OF 300 MILLION AN ITEM IN YESTERDAY'S NEW SECURITIES ISSUES COLUMN INCORRECTLY REPORTED THE FACE AMOUNT OF THE OFFERING AS 300 MILLION 9308190009 930819 BUSINESS BRIEF MICROPROSE INC LOSS OF 8 MILLION ESTIMATED FOR 1994 FISCAL 1ST QUARTER MICROPROSE INC WHICH IS BEING ACQUIRED BY SPECTRUM HOLOBYTE INC SAID IT EXPECTS TO REPORT A LOSS OF 8 MILLION FOR FISCAL FIRST QUARTER 1994 AND NAMED ONE OF SPECTRUM'S OFFICERS TO A KEY POSITION THE HUNT VALLEY MD ENTERTAINMENT SOFTWARE MAKER SAID EARLY RESULTS FOR THE QUARTER ENDED JUNE 30 INDICATE A LOSS OF ABOUT 83 MILLION OR 124 A SHARE COMPARED WITH THE YEARAGO LOSS OF 13 MILLION OR 19 CENTS A SHARE THE COMPANY ATTRIBUTED THE LOSS PARTLY TO 44 MILLION IN CHARGES INCURRED FROM REFOCUSING ON ITS CORE BUSINESSES OF SIMULATION AND STRATEGY VIDEO AND COMPUTER GAMES MICROPROSE SAID THE NET LOSS ALSO REFLECTS THE COST OF INVESTMENT BANKING AND OTHER SERVICES RELATED TO ITS PENDING MERGER WITH SPECTRUM MICROPROSE NAMED 48YEAROLD STEPHEN MUIRHEAD SPECTRUM'S FORMER VICE PRESIDENT OF EUROPE AS PRESIDENT OF US OPERATIONS THAT POST WAS HELD BY FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER JW BILL STEALEY SR 45 WHO RESIGNED AS CHAIRMAN OF MICROPROSE'S BOARD DIRECTOR FRANK MURNANE 50 ALSO RESIGNED 9308190008 930819 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 1/8 BID 3 3/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 59 DAYS 312 60 TO 89 DAYS 313 90 TO 119 DAYS 314 120 TO 154 DAYS 325 155 TO 244 DAYS 332 245 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 316 30 DAYS 318 60 DAYS 318 90 DAYS CERTIFICATES OF DEPOSIT 260 ONE MONTH 265 TWO MONTHS 265 THREE MONTHS 285 SIX MONTHS 303 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 315 THREE MONTHS 333 SIX MONTHS BANKERS ACCEPTANCES 307 30 DAYS 308 60 DAYS 309 90 DAYS 311 120 DAYS 323 150 DAYS 323 180 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 16 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 303 13 WEEKS 312 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 685 60 DAYS 692 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 681 60 DAYS 691 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 505 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 9308190007 930819 LAW COURT TO RECONSIDER PANEL RULING AGAINST GLENDALE FEDERAL BANK WASHINGTON A FEDERAL APPEALS COURT AGREED TO RECONSIDER A DECISION VACATING A POTENTIAL 1 BILLION DAMAGE AWARD AGAINST THE GOVERNMENT WON BY GLENDALE FEDERAL BANK THE US COURT OF APPEALS FOR THE FEDERAL CIRCUIT GRANTED A REQUEST BY GLENDALE FEDERAL FOR A REHEARING IN THE BREACHOFCONTRACT CASE IN MAY A THREEJUDGE PANEL OF THE COURT REVERSED A 1992 LOWERCOURT RULING THAT FAVORED THE THRIFT YESTERDAY'S ORDER VACATES THAT DECISION WITHOUT EXPLANATION AND THE ISSUE WILL BE CONSIDERED BY THE FULL 11MEMBER APPEALS COURT NO DATE WAS SET THE CASE HAS BEEN CLOSELY WATCHED BY THE THRIFT INDUSTRY BECAUSE ABOUT 40 SIMILAR CASES ARE PENDING ACCORDING TO STEVEN ROSENTHAL AN ATTORNEY FOR A UNIT OF CALFED INC WHICH FILED ONE OF THEM THE GLENDALE CASE STEMS FROM ACCOUNTING GIMMICKS USED BY FEDERAL REGULATORS TO INDUCE HEALTHY THRIFTS TO PURCHASE AILING INSTITUTIONS IN THE 1970S AND 1980S THE ACQUIRING THRIFTS WERE ALLOWED TO COUNT AS PART OF THEIR CAPITAL BASE MILLIONS OF DOLLARS OF GOODWILL RELATED TO THE ACQUISITIONS REGULATORS BARRED THE PRACTICE PURSUANT TO THE 1989 THRIFT BAILOUT LAW LEAVING A NUMBER OF THE ACQUIRING THRIFTS STRUGGLING GLENDALE A UNIT OF GLENFED INC BASED IN GLENDALE CALIF FILED SUIT AND IN JULY 1992 THE US COURT OF FEDERAL CLAIMS HELD THAT OFFICIALS HAD BROKEN AN AGREEMENT WITH THE THRIFT EXPOSING THE GOVERNMENT TO DAMAGES ESTIMATED BY GLENDALE AT UP TO 14 BILLION JUSTICE DEPARTMENT AND GLENDALE OFFICIALS COULDN'T BE REACHED FOR COMMENT THE THRIFT ONE OF THE COUNTRY'S LARGEST IS IN THE PROCESS OF A MAJOR CAPITAL RESTRUCTURING IN AN ATTEMPT TO STAVE OFF SEIZURE BY FEDERAL REGULATORS 9308190005 930819 BUSINESS BRIEF FLETCHER CHALLENGE LTD NEW ZEALAND COMPANY HAS PROFIT FOR YEAR TO JUNE 30 SHARES OF NEW ZEALAND'S FLETCHER CHALLENGE LTD JUMPED 16 WEDNESDAY AFTER THE COMPANY ANNOUNCED A TURNAROUND IN RESULTS FOR ITS YEAR ENDED JUNE 30 IT REPORTED A BETTERTHANEXPECTED PROFIT OF 3818 MILLION NEW ZEALAND DOLLARS US2117 MILLION THE RESULT COMPARED WITH A LOSS OF NZ1575 MILLION IN THE PREVIOUS YEAR WHEN IT WAS HIT BY WRITEDOWNS ON PROPERTY ASSETS AND RESTRUCTURING COSTS TOTALING NZ463 MILLION THIS YEAR'S RESULTS INCLUDE NZ79 MILLION OF ONETIME GAINS THE NET EFFECT OF GAINS ON ASSET SALES AND ALLOWANCES FOR FURTHER RESTRUCTURING MUCH OF THE IMPROVEMENT IN BUSINESS CAME FROM THE BUILDING INDUSTRIES SECTOR REFLECTING A SHARP INCREASE IN INTERNATIONAL WOOD PRICES FLETCHER SHARES CLOSED UP 47 CENTS AT NZ347 9308190004 930819 LETTERS TO THE EDITOR OSTRICHLIKE APPROACH TO PESTICIDE RISKS THE ESSENCE OF JERRY TAYLOR'S RECENT PIECE IS THAT NOTWITHSTANDING THE RESULTS OF A FIVEYEAR NATIONAL ACADEMY OF SCIENCES STUDY CONCLUDING THAT EXISTING LAWS DO NOT ADEQUATELY PROTECT CHILDREN FROM DIETARY EXPOSURE TO PESTICIDES WE SHOULD CONTINUE TO DO NOTHING PESTICIDE DANGER THE KIDS ARE ALL RIGHT EDITORIAL PAGE JULY 19 MR TAYLOR ARGUES AGAINST THE NAS RECOMMENDATIONS FOR GREATER PROTECTIONS CLAIMING IT'S HARD TO SAY WHETHER CHILDREN ARE ACTUALLY AT GREATER RISK FROM PESTICIDES IN FOOD INSTEAD HE WOULD LEAVE THE NATION'S CHILDREN IN POTENTIAL JEOPARDY UNTIL SCIENTIFIC CERTAINTY IS ACHIEVED A NEAR IMPOSSIBILITY THIS BLASE APPROACH IS DIFFICULT TO COMPREHEND ESPECIALLY WHEN CANCER IN CHILDREN HAS INCREASED 215 JUST SINCE 1950 MORE THAN 70 PESTICIDES PERMITTED IN THE FOOD SUPPLY HAVE NOW BEEN DETERMINED TO CAUSE CANCER IN LABORATORY ANIMALS TO WAIT FOR CERTAINTY IS TO WAIT FOR MORE CANCER WITH ALL ITS ATTENDANT SOCIAL AND ECONOMIC COSTS MR TAYLOR INDICATES THAT MOST FOOD DOES NOT CONTAIN DETECTABLE PESTICIDE RESIDUES WHILE IN FACT 38 OF FOODS SAMPLED BY THE FDA WERE FOUND TO DO SO THIS NUMBER MOST CERTAINLY UNDERSTATES ACTUAL RESIDUES THE MOST COMMONLY USED LABORATORY TESTS DETECT ONLY HALF THE PESTICIDES USED ON OUR FOOD SUPPLY IN CONTRAST TO MR TAYLOR'S OSTRICHLIKE APPROACH THERE IS A GROWING CONSENSUS IN GOVERNMENT INDUSTRY AND THE ENVIRONMENTAL COMMUNITY THAT THE NATION'S PESTICIDE LAWS ARE IN NEED OF FUNDAMENTAL REFORM CONGRESSIONAL ACTION IS LIKELY INCLUDING ADOPTION OF THE RECOMMENDATIONS OF THE NATIONAL ACADEMY OF SCIENCES 9308190003 930819 REVIEW & OUTLOOK EDITORIAL ASIDES GOOD NEWS IN GOTHAM BIG CRIME STORIES OFTEN END GRIMLY IN NEW YORK CITY BUT NOT THE HARVEY WEINSTEIN STORY THE KIDNAPPED CLOTHING EXECUTIVE'S NATIONALLY TELEVISED NEWS CONFERENCE YESTERDAY REVEALED MANY HUMAN EMOTIONS COURAGE INGENUITY DESPAIR JOY JUST THIS ONCE THE EMOTION THAT PREVAILED WAS JOY WITH MR WEINSTEIN'S SIMPLE CODA TO THE TALE I KNEW I WAS HOME I KNEW I WAS SAFE AND I KNEW GOD HAD SMILED DOWN ON ME 9308190002 930819 METALL CONSIDERS ACQUIRING STAKES IN COPPER FIRMS BY MARK HEINZL STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO METALL MINING CORP IS PLANNING TO SPEND HUNDREDS OF MILLIONS OF DOLLARS TO BOOST ITS PRODUCTION OF COPPER IN A BET THAT THE METAL WILL ENJOY STRONG DEMAND FROM EMERGING NATIONS METALL A TORONTO BASEMETALS AND GOLD PRODUCER SAID IT IS CONSIDERING ACQUIRING MINORITY STAKES IN TWO EUROPEAN COPPERSMELTING AND REFINING COMPANIES GERMANY'S NORDDEUTSCHE AFFINERIE AG AND AUSTRIA'S MONTANWERKE BRIXLEGG GMBH THE STAKES WOULD BE ACQUIRED FROM GERMANY'S METALLGESELLSCHAFT AG WHICH OWNS 603 OF METALL WHILE METALL IS DISCLOSING FEW FINANCIAL DETAILS THE PURCHASE PRICE WOULD BE MORE THAN 200 MILLION CANADIAN DOLLARS US152 MILLION ACCORDING TO ONE ANALYST FAMILIAR WITH THE TRANSACTION METALL IS ALSO LOOKING TO ACQUIRE A WORLDCLASS COPPER MINE POSSIBLY IN ARGENTINA OR CHILE FURTHER METALL IS CONSIDERING A US200 MILLION EXPANSION AND MODERNIZATION OF ITS COPPER RANGE COPPER PROJECT IN NORTHERN MICHIGAN THAT WOULD SEE SMELTING CAPACITY NEARLY DOUBLE TO 135000 METRIC TONS A YEAR THE EXPANSION WOULD BE COMPLEMENTED BY AN INCREASE OF AS MANY AS 100 MILLION POUNDS OF COPPER PRODUCED IF A NEW LEACHING PROCESS PROVES ECONOMICAL THE PROJECT PRODUCED 139 MILLION POUNDS OF COPPER IN 1992 IN DEVOTING MOST OF ITS EFFORTS TO COPPER ANALYSTS SAY METALL MINING IS JOINING THE RANKS OF MAJOR US PRODUCERS SUCH AS MAGMA COPPER CO OF SAN MANUEL ARIZ AND PHELPS DODGE CORP OF PHOENIX BUT ANALYSTS ARE DIVIDED ON THE PROSPECTS FOR COPPER WHOSE PRICE HAS SLIPPED FROM AS MUCH AS 140 A POUND IN 1990 TO ABOUT 84 CENTS CURRENTLY COPPER'S PRICE IS LARGELY TIED TO ECONOMIC GROWTH SINCE IT IS USED MAINLY IN INFRASTRUCTURE PROJECTS AND CONSUMER DURABLES MOST ANALYSTS SEE ONLY A MODERATE INCREASE FOR THE PRICE OF COPPER FRED DEMLER A METALS ECONOMIST WITH PAINEWEBBER INC IN NEW YORK PREDICTS IT WILL BE A FEW YEARS BEFORE THE METAL CLIMBS PAST 1 PER POUND A FEW ANALYSTS SEE COPPER SLIPPING TO 60 CENTS LOW PRICES TRANSLATE INTO SOUR PROFITS FOR COPPER PRODUCERS HOWEVER IF METALL DOES EXPAND ITS MICHIGAN OPERATION ITS PRODUCTION COSTS UNDER THE LEACHING METHOD WOULD BE LESS THAN 40 CENTS A POUND SAID DOUGLAS SCHARF METALL'S CHIEF FINANCIAL OFFICER IN AN INTERVIEW MR SCHARF SAID THAT THE PURCHASE PRICE OF THE METALLGESELLSCHAFT ASSETS IS STILL BEING NEGOTIATED BUT THAT IT WOULD BE PAID FOR WITH METALL STOCK AND PART OF THE COMPANY'S ROUGHLY C100 MILLION IN CASH METALL WOULD ALSO RAISE EXTRA FUNDS THROUGH A PUBLIC SHARE ISSUE THE SIZE OF WHICH HASN'T BEEN DETERMINED HE SAID IF THE TRANSACTIONS ARE COMPLETED METALLGESELLSCHAFT WOULD DEFINITELY MAINTAIN ITS CONTROLLING STAKE IN METALL MR SCHARF SAID MR SCHARF SAID METALL ALSO PLANS TO CREATE A PUBLIC COMPANY TO HOLD ITS GOLDMINING ASSETS 9308190001 930819 INTERNATIONAL ELECTROLUX REPORTS PRETAX PROFIT ROSE BY 13 IN PERIOD BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM AB ELECTROLUX'S SECONDQUARTER PRETAX PROFIT GREW 13 ON A 20 SURGE IN SALES FUELED BY SWEDEN'S CURRENCY DEVALUATION PRETAX PROFIT TOTALED 549 MILLION SWEDISH KRONOR 684 MILLION FROM 488 MILLION KRONOR A YEAR EARLIER WEAK EUROPEAN MARKETS AND CONTINUED PROBLEMS WITH US APPLIANCE OPERATIONS MUTED THE EARNINGS GROWTH COMPARED WITH THE RISE IN SALES SECONDQUARTER SALES ROSE TO 2566 BILLION KRONOR FROM 2134 BILLION KRONOR THE PREVIOUS YEAR WITH EXCHANGE RATE FLUCTUATIONS ACCOUNTING FOR ROUGHLY 19 PERCENTAGE POINTS OF THE INCREASE THE COMPANY SAID THE SECOND QUARTER WAS A BIG IMPROVEMENT OVER THIS YEAR'S FIRST THREE MONTHS WHEN PRETAX PROFIT TUMBLED 21 FOR THE FIRST HALF PRETAX PROFIT INCHED UP A SLIM 15 TO 735 MILLION KRONOR THOUGH SALES ADJUSTED FOR ACQUISITIONS AND DIVESTMENTS SHOT UP 21 TO 4965 BILLION KRONOR THE RESULT EXCEEDED MOST ANALYSTS' PROFIT PROJECTIONSAND BULLISH INVESTORS SENT THE PRICE OF ELECTROLUX'S BENCHMARK CLASS B STOCK UP 11 KRONOR OR 45 TO 273 KRONOR IN HEAVY TRADING ON THE STOCKHOLM STOCK EXCHANGE SOME INTERNATIONAL FUND MANAGERS DISMISSED THE SHARP RISE AS AN OVERREACTION ESPECIALLY CONSIDERING RELATIVELY LACKLUSTER PROSPECTS FOR THE COMPANY'S CORE APPLIANCE OPERATIONS ANALYSTS ATTRIBUTED YESTERDAY'S RALLY TO BARGAIN HUNTING BY INVESTORS COMBING THE MARKET FOR UNDERVALUED CYCLICAL STOCKS ELECTROLUX'S FIRST HALF OFFERED SOME SOMBER EVIDENCE THAT THE KRONA'S 25 DEPRECIATION SINCE NOVEMBER WON'T AUTOMATICALLY TRIGGER A PROFIT WINDFALL THROUGHOUT SWEDISH INDUSTRY ABOUT A THIRD OF ELECTROLUX'S APPLIANCE SALES COME FROM THE US WHERE THE COMPANY'S PREDOMINANTLY LOCAL US PRODUCTION SHRINKS POTENTIALLY POSITIVE EFFECTS OF THE SWEDISH DEVALUATION OF COURSE DOLLARDENOMINATED PROFITS WOULD TRANSLATE INTO FAR MORE KRONOR IN ELECTROLUX ACCOUNTS BUT THERE HASN'T BEEN MUCH BLACK INK TO EXCHANGE SO FAR FOR YEARS ELECTROLUX HAS SPENT HEAVILY TO UPGRADE AMERICAN FACTORIES AND PRODUCT LINES INHERITED THROUGH MAJOR ACQUISITIONS AND BEEN BRUISED IN FIERCELY COMPETITIVE US APPLIANCE MARKETS BY GIANT DEEPPOCKETED RIVALS SUCH AS WHIRLPOOL CORP AND GENERAL ELECTRIC CO 9308190057 930722 DR ELDERS'S RECORD IN ARKANSAS BY BLANT HURT LITTLE ROCK ARK SINCE PRESIDENT CLINTON NOMINATED JOYCELYN ELDERS TO BE SURGEON GENERAL THE OPPOSITION TO HER APPOINTMENT HAS BEEN SLOWLY BUILDING AND MAY CULMINATE ON FRIDAY AS HER SENATE HEARINGS BEGIN UPON HER APPOINTMENT AS DIRECTOR OF ARKANSAS'S HEALTH DEPARTMENT IN 1987 THE FUROR CAME QUICKLY DR ELDERS DECLARED THAT HER GOAL WAS TO CUT ARKANSAS'S TEENAGE PREGNANCY RATE IN HALF DR ELDERS CHOSE TO COMBAT THIS DEADLY DISEASE AS SHE CALLED IT WITH PUBLIC SCHOOLBASED CLINICS THAT PROVIDE COUNSELING AND DISPENSE CONTRACEPTIVES MANY ARKANSANS PROTESTED THAT THIS WAS A BLATANT USURPATION OF PARENTAL AUTHORITY BY THE PUBLIC SCHOOLS A LITTLE ROCK PREACHER SPEAKING BEFORE THE ARKANSAS LEGISLATURE'S JOINT BUDGET COMMITTEE CLAIMED THAT THE CLINICS PROMOTED A CUTLOOSE SOCIETY AND A LACK OF ETHICS AND RESPONSIBILITY DR ELDERS RETORTED THAT PREACHERS HAVE BEEN MORALIZING FOR YEARS TODAY ARKANSAS HAS 24 SCHOOLBASED CLINICS IN 11 COUNTIES ACROSS THE US THERE ARE FEWER THAN 200 DR ELDERS'S EFFORTS TO LOWER THE TEEN PREGNANCY RATE HAVE NOT ACHIEVED THEIR INTENDED EFFECT HOWEVER AFTER DECLINING FROM 1980 TO 1985 THE RATE ROSE RATHER DRAMATICALLY DURING DR ELDERS'S TENURE TO 78 IN 1990 FROM 68 IN 1987 MORE TO THE POINT THE RATE HAS RISEN IN 10 OF THE 11 ARKANSAS COUNTIES THAT HAVE SCHOOLBASED CLINICS OVERALL THE TEEN PREGNANCY RATE IN THESE 11 COUNTIES HAS RISEN 12 INTERESTINGLY THE OUTCOME OF DR ELDERS'S STATELEVEL EFFORTS ON BEHALF OF PUBLIC HEALTH ARE SIMILAR TO THE OUTCOME OF MRS CLINTON'S EFFORTS IN PUBLIC EDUCATION IN 1983 MRS CLINTON DECLARED THAT ARKANSANS MUST QUIT MAKING EXCUSES FOR PUBLIC EDUCATION AFTER A DECADE OF ALLEGED REFORMS AND A DOUBLING OF STATE AND LOCAL SPENDING TEST SCORES ARE STAGNANT AND THE REMEDIATION RATE FOR ENTERING FRESHMEN AT ARKANSAS COLLEGES IS A STAGGERING 57 DESPITE THESE RESULTS BOTH DR ELDERS AND MRS CLINTON HAVE DECLARED VICTORY IF DR ELDERS IS CONFIRMED BOTH WOMEN WILL HAVE MOVED FROM REGIONAL FAILURES TO POLICYMAKING POSITIONS ON A NATIONAL SCALE ONE AS SURGEON GENERAL THE OTHER AS HEALTHCARE CZAR ARKANSANS HAVE GROWN WEARY OF DR ELDERS FOR OTHER REASONS CHIEF AMONG THEM IS THE CONTROVERSY OVER HER SALARY ACCORDING TO STATE LAW THE MAXIMUM PAY FOR THE DIRECTOR OF ARKANSAS'S HEALTH DEPARTMENT IS 76440 YET DR ELDERS RECEIVES 103297 HOW SO DR ELDERS HAS ACTUALLY TAKEN HOME TWO SALARIES FROM STATE INSTITUTIONS ONE FOR 76440 FROM THE HEALTH DEPARTMENT AND A SUPPLEMENT FROM HER FORMER EMPLOYER THE UNIVERSITY OF ARKANSAS FOR MEDICAL SCIENCES UAMS THIS IN SPITE OF THE FACT THAT HER CONTRACT WITH THE HEALTH DEPARTMENT CALLS FOR 260 DAYS IE 52 WEEKS OF EMPLOYMENT IN JULY 1990 ARKANSAS'S ATTORNEY GENERAL ISSUED AN OPINION NOTING THAT IT CAN BE REASONABLY CONCLUDED THAT DR ELDERS'S PAY ARRANGEMENT VIOLATES THE INTENT OF A STATE LAW BARRING STATE AGENCIES FROM ENTERING INTO PROFESSIONALSERVICE CONTRACTS WITH STATE EMPLOYEES A SPOKESMAN FOR THENGOV CLINTON DISMISSED THIS AS A TECHNICALITY AND ADDED THAT THE OPINION WAS BASED ON LIMITED INFORMATION ABOUT WHAT DUTIES DR ELDERS PERFORMS FOR UAMS APPARENTLY HER DUTIES INVOLVED LOTS OF TRAVEL DURING ONE 120DAY PERIOD FROM JANUARY THROUGH APRIL 1991 SHE ATTENDED 71 INSTATE AND OUTOFSTATE FUNCTIONS MANY AS A FEATURED SPEAKER DR ELDERS WAS CLEARLY A CELEBRITY OF SORTS MUCH IN DEMAND FLORIDA EVENTUALLY ADOPTED A SCHOOLBASED CLINIC PROGRAM BECAUSE A LEGISLATOR THERE SAW A SEGMENT ABOUT HER ARKANSAS EFFORTS ON 60 MINUTES THE APPROPRIATENESS OF DR ELDERS'S SALARY REACHED A CRISIS SUNDAY WHEN SHE FINALLY RESIGNED AS ARKANSAS'S HEALTH DIRECTOR AFTER COMING UNDER FIRE FOR TRIPLEDIPPING IN ADDITION TO HER TWO STATE SALARIES ADDING UP TO 103297 SHE WAS RECEIVING 550 A DAY AS A CONSULTANT TO DONNA SHALALA SECRETARY OF HEALTH AND HUMAN SERVICES DR ELDERS'S QUESTIONABLE JUDGMENT HAS SHOWN ITSELF BEFORE IN 1992 SHE MADE HEADLINES WHEN SHE AWARDED A 65000 CONTRACT TO A MAN CONVICTED OF MAKING FALSE STATEMENTS IN ORDER TO OBTAIN A 10 MILLION BANK LOAN FROM THE FARMERS HOME ADMINISTRATION THOUGH THE CONTRACT ATTRACTED THE ATTENTION OF THE ARKANSAS LEGISLATURE DR ELDERS WHO CONTROLLED SUCH APPROPRIATIONS WAS UNAPOLOGETIC WHEN CHALLENGED SHE CHARACTERIZED THE FELON A HEALTHHAZARD RESEARCHER AS A VALUABLE ASSET ADDING THAT HE DOES MORE THAN ENOUGH WORK IN MY HEALTH DEPARTMENT TO BE SURE DR ELDERS'S FIRM HAND HAS AIDED HER EMPIREBUILDING THE BUDGET FOR THE HEALTH DEPARTMENT HAS GROWN TO 150 MILLION IN 1993 FROM 67 MILLION IN 1987 WITH MOST OF THE INCREASE COMING FROM NONMANDATED FEDERAL FUNDING THE HEALTH DEPARTMENT'S DEPUTY DIRECTOR RECENTLY BRAGGED ABOUT THE INCREASED FUNDING NOTING THAT JUST BECAUSE IT'S FEDERAL MONEY YOU DON'T GET IT YOU COMPETE ARKANSAS HAS OBVIOUSLY COMPETED WELL WHEN SHE BEGAN HER TENURE AS HEALTH CZAR DR ELDERS SAID IT REALLY TAKES SOMEONE IN MY POSITION TO BE WILLING TO STAND UP AND TAKE THE FLAK THAT I HAVE TO TAKE TO GET THE JOB DONE DR ELDERS'S HABIT OF UTTERING THE OUTRAGEOUS HAS INTENSIFIED THE CRITICISM AIMED HER WAY IN 1988 SHE MADE THE OFTQUOTED REMARK TO ANTIABORTION FORCES THAT THEY REALLY SHOULD GET OVER THEIR LOVE AFFAIR WITH THE FETUS WITH CONSIDERABLE HYPERBOLE SHE CLAIMED HER CRITICS ARE NONCHRISTIANS WITH A SLAVEMASTER MENTALITY SUCH COMMENTS PROMPTED ONE ARKANSAS LEGISLATOR TO SAY THAT DR ELDERS HAS A TENDENCY WHILE SPEAKING TO BECOME INEBRIATED WITH HER OWN SUPERFLUITY CONSIDERING HER CONTROVERSIAL VIEWS ON ABORTION SEX EDUCATION AND SCHOOLBASED CLINICS THERE SHOULD BE PLENTY OF SUPERFLUITY ON DISPLAY AS THE SENATE CONSIDERS DR ELDERS'S NOMINATION MR HURT IS A LITTLE ROCK BUSINESSMAN AND A COLUMNIST FOR ARKANSAS BUSINESS SEE RELATED LETTER LETTERS TO THE EDITOR WHAT DR ELDERS DID FOR ARKANSAS WSJ AUG 19 1993 9307220102 YY93 MM08 9308190051 930715 LEISURE & ARTS BOOKSHELF ISRAELIS' VIEW OF HOLOCAUST BY AMY DOCKSER MARCUS STANDING IN A NAZI CONCENTRATION CAMP DURING A RECENT TRIP TO POLAND ISRAELI PRIME MINISTER YITZHAK RABIN GAVE AN EMOTIONAL SPEECH ABOUT THE LEGACY OF THE HOLOCAUST AND THEN DECLARED AT THE END THIS TERRIBLE TRAGEDY WILL NEVER BE REPEATED WE WILL PROTECT EVERY JEW EVERYWHERE OVER THE YEARS THE PROMISE CONTAINED IN MR RABIN'S SPEECH HAS SERVED AS A KIND OF SOCIAL COMPACT BETWEEN ISRAEL AND THE JEWISH DIASPORA THEREFORE READERS OF TOM SEGEV'S CONTROVERSIAL NEW BOOK THE SEVENTH MILLION THE ISRAELIS AND THE HOLOCAUST HILL & WANG 593 PAGES 2750 MAY FIND IT SHOCKING TO DISCOVER THAT THE EARLY ZIONIST LEADERS HAD A CHANCE DURING THE HOLOCAUST TO SAVE JEWS IN EUROPE BUT DIDN'T BELIEVE THAT SUCH A TASK WAS THEIR RESPONSIBILITY THE SEVENTH MILLION IS A COMPELLING AND DISTURBING WORK THAT BEGINS WITH THE NAZI RISE TO POWER AND ENDS WITH THE PERSIAN GULF WAR 60 YEARS LATER MR SEGEV A JOURNALIST WITH THE LEFTWING DAILY NEWSPAPER HA'ARETZ BELONGS TO A NEW SCHOOL OF ISRAELI HISTORIANS WHO CAME OF AGE AFTER THE FOUNDING OF THE STATE IN 1948 IN RECENT YEARS THESE SCHOLARS HAVE PUBLISHED BOOKS THAT CHALLENGE THE MYTHS SURROUNDING EVERYTHING FROM THE WAR OF INDEPENDENCE TO THE ARABISRAELI CONFLICT MR SEGEV'S BOOK TACKLES ISRAEL'S COMPLEX RELATIONSHIP WITH THE HOLOCAUST A DELICATE TASK IN A COUNTRY WHERE ROUGHLY ONE IN 17 RESIDENTS IS A HOLOCAUST SURVIVOR THE BOOK CONTENDS THAT ISRAEL'S FOUNDING GENERATION WAS FAR MORE PREOCCUPIED WITH INTERNAL PARTY POLITICS THAN WITH TRYING TO STOP THE DESTRUCTION OF ONETHIRD OF THE WORLD'S JEWISH POPULATION CITING HISTORICAL DOCUMENTS MR SEGEV SHOWS THAT DISCUSSIONS ON A STRIKE AT A CANNING FACTORY AND PLANS FOR A MAY DAY CELEBRATION TOOK PRECEDENCE OVER RESCUING EUROPE'S JEWS MOREOVER DESPITE THE CRISIS IN EUROPE THE LEADERS OF THE JEWISH STATETOBE INSISTED ON SELECTING REFUGEES TO RESCUE BASED ON THE NEEDS AND IDEOLOGY OF THE JEWISH COMMUNITY IN PALESTINE WHILE THE PRESTATE JEWISH COMMUNITY IN PALESTINE COULD NOT HAVE SAVED MILLIONS OF JEWS MR SEGEV CONCLUDES THAT IT NONETHELESS DID NOT DO ENOUGH WHAT STOPPED IT WEREN'T TECHNICAL PROBLEMS INHERENT IN WARTIME RESCUES OR EVEN THE DIFFICULTIES IN RAISING FUNDS HE SAYS BUT RATHER THE VAST SPIRITUAL CHASM THAT EXISTED BETWEEN THE ZIONIST LEADERS AND THE EVENTS UNFOLDING IN EUROPE THE ZIONISTS MAINTAINED THAT THEIR MOVEMENT WAS ONE OF SALVATION FOR ALL JEWS BUT AT THE SAME TIME THEY HARBORED DEEP CONTEMPT FOR THE DIASPORA ITS HISTORY CULTURE AND RELIGIOUS TRADITIONS IN THE END THEIR SENSE OF MORAL SUPERIORITY AND ALLCONSUMING FOCUS ON STATEBUILDING RESULTED IN ONLY A FEW OF THE JEWS WHO SURVIVED THE HOLOCAUST OWING THEIR LIVES TO THE ZIONIST MOVEMENT EVENTUALLY THE HARDHEARTED PRAGMATISM OF THE EARLY LEADERS GAVE WAY TO A DEEPENING EMOTIONAL IDENTIFICATION WITH THE HOLOCAUST THE TRANSFORMATION ACCELERATED IN THE 1970S WHEN ISRAEL'S BUILDING OF JEWISH SETTLEMENTS ON THE WEST BANK AND GAZA STRIP AND THE ARAB OIL EMBARGO OF THE WEST LED TO THE COUNTRY'S GROWING DIPLOMATIC ISOLATION OVER TIME ISRAELIS INCREASINGLY BEGAN TO SEE PARALLELS BETWEEN THEIR OWN PREDICAMENT AND THE HOLOCAUST THEY ABANDONED THE ZIONIST NOTION THAT THEY WERE NEW JEWS FREE OF THE GHETTO MENTALITY THAT SUPPOSEDLY CHARACTERIZED THE DIASPORA AND STARTED TO VIEW THEMSELVES AS THE LATEST IN A LONG LINE OF JEWISH VICTIMS LIVING IN ISOLATION AND DEPENDENT ON THE GOODWILL AND FINANCIAL ASSISTANCE OF OUTSIDERS IN ORDER TO SURVIVE THE HOLOCAUST ONCE CONSIDERED A SHAMEFUL DISTANT TRAUMA INSTEAD CAME TO BE SEEN AS THE DEFINING EVENT OF THE MODERN STATE THAT ROSE IN ITS WAKE THE BOOK'S MAJOR FLAW IS THAT MR SEGEV'S SHARP VOICE FREQUENTLY GETS LOST IN THE OVERWHELMING WEALTH OF DETAIL HE HAS UNCOVERED THE EARLY CHAPTERS ON THE PRESTATE LEADERS' REACTIONS TO THE HOLOCAUST PARTICULARLY THAT OF ISRAEL'S FIRST PRIME MINISTER DAVID BENGURION ARE FASTPACED AND RIVETING BUT IN SUBSEQUENT SECTIONS OF THE BOOK PARTICULARLY ON SUBJECTS THAT HAVE ALREADY BEEN WELLDOCUMENTED ELSEWHERE SUCH AS THE 1961 TRIAL IN JERUSALEM OF THE NAZI WAR CRIMINAL ADOLF OTTO EICHMANN MR SEGEV SHIES AWAY FROM PROVIDING THE KIND OF INTERPRETATION THAT IS CRITICAL IN A WORK OF THIS MAGNITUDE AND GETS BOGGED DOWN RECOUNTING MINUTE DEVELOPMENTS IN THE INNUMERABLE IDEOLOGICAL DISPUTES BETWEEN THE VARIOUS POLITICAL FACTIONS IN THE FINAL SECTION OF HIS BOOK MR SEGEV INDICATES THAT THERE ARE CLEAR BEGINNINGS OF A FUNDAMENTAL SHIFT IN ATTITUDES TOWARD THE HOLOCAUST AS YOUNG ISRAELIS BEGIN TO LOOK OUTWARD TOWARD THE LARGER WORLD WITH LESS FEAR AND MORE CONFIDENCE THAN PRECEDING GENERATIONS DID A CHANGE HE SEEMS TO WELCOME THE HOLOCAUST HE CONCLUDES SABOTAGED THE REALIZATION OF THE ZIONIST DREAM THAT ISRAEL WOULD BECOME A NATION LIKE ALL OTHER NATIONS HE LAMENTS THE FACT THAT THIS DREAM WAS REPLACED BY A NATIONALISTIC OUTLOOK CHARACTERIZED BY WHAT HE TERMS INSULAR CHAUVINISM AND A SENSE THAT ISRAEL'S FATE IS TO DWELL ALONE MR SEGEV DOES NOT ADVOCATE FORGETTING THE HOLOCAUST BUT HIS BOOK OFFERS AN ELOQUENT PLEA AGAINST ALLOWING IT TO OVERSHADOW THE VISION OF AN ISRAEL THAT IS MORE THAN JUST A REFUGE FOR THE PERSECUTED MS DOCKSER MARCUS IS A JOURNAL REPORTER IN TEL AVIV SEE RELATED LETTER LETTERS TO THE EDITOR EARLY ZIONIST LEADERS RESCUED EUROPEAN JEWS AUG 19 1993 9307150093 YY93 MM08 9308190050 930719 PESTICIDE DANGER THE KIDS ARE ALL RIGHT BY JERRY TAYLOR THE NATIONAL RESEARCH COUNCIL OF THE NATIONAL ACADEMY OF SCIENCES RECEIVED HEADLINE COVERAGE ACROSS AMERICA LAST MONTH FOR ITS REPORT PESTICIDES IN THE DIETS OF INFANTS AND CHILDREN NRC CONCLUDED THAT THERE WAS POTENTIAL FOR CONCERN ABOUT THE RISK AGRICULTURAL CHEMICALS POSE TO THOSE UNDER THE AGE OF 18 FASTER THAN YOU CAN SHOUT FIRE IN A CROWDED THEATER THE ENVIRONMENTAL PROTECTION AGENCY THE FOOD AND DRUG ADMINISTRATION AND THE AGRICULTURE DEPARTMENT ANNOUNCED THAT THE CLINTON ADMINISTRATION WOULD TIGHTEN PESTICIDE SAFETY REGULATIONS AND MOVE TO BAN THE USE OF DOZENS OF UNSPECIFIED AGRICULTURAL CHEMICALS WHAT MAKES THOSE EVENTS ALL THE MORE REMARKABLE IS THE FACT THAT THE NRC STUDY HAD VIRTUALLY NOTHING NEW TO SAY THE POTENTIAL FOR CONCERN UNCOVERED BY NRC WAS MERELY THE LACK OF SUFFICIENT EVIDENCE TO PROVE THAT FRUITS AND VEGETABLES ARE SAFE FOR CHILDREN TO EAT WITH THAT KIND OF BURDEN OF PROOF IT'S NO WONDER THAT THE REGULATORY STATE CONTINUES TO EXPAND IS THERE ANY EVIDENCE TO SUGGEST THAT PESTICIDES PRESENT A RISK TO KIDS NOT REALLY AND THE NRC REPORT FAILS TO PROVIDE ANY NEW REVELATIONS ON THE MATTER ALTHOUGH IT DOES CLOUD THE ISSUE WITH MISLEADING STATISTICS FOR EXAMPLE NRC REPORTS THAT CHILDHOOD CANCERS HAVE INCREASED 76 SINCE 1973 BUT NEGLECTS TO NOTE THE MORE SIGNIFICANT LONGTERM TREND CANCER MORTALITY RATES AMONG CHILDREN HAVE BEEN CUT NEARLY IN HALF SINCE THE 1960S ACCORDING TO DR EDWARD SONDIK OF THE NATIONAL CANCER INSTITUTE THE SLIGHT INCREASE IN CHILDHOOD CANCER CASES SINCE THE EARLY 1970S IS LARGELY DUE TO BETTER DIAGNOSTIC TECHNIQUES WHICH IDENTIFY CANCERS THAT PREVIOUSLY WENT UNDETECTED OR WERE MISDIAGNOSED THERE ARE BIOLOGICAL FACTORS THAT SUGGEST CHILDREN COULD BE AT GREATER RISK THAN ADULTS WHEN EXPOSED TO PESTICIDE RESIDUES BUT AGAIN THE ARGUMENT IS SPECULATIVE AT BEST OLDER INFANTS AND YOUNG CHILDREN MAY METABOLIZE PESTICIDES MORE EXTENSIVELY AND ELIMINATE THEM MORE RAPIDLY THAN ADULTS NRC OBSERVES DOES THAT MEAN CHILDREN ARE MORE OR LESS SUSCEPTIBLE TO PESTICIDE POISONING WHO KNOWS ANIMAL TESTS SUGGESTS THAT EITHER WAY THE DIRECTION OF THE DIFFERENCE IS DEPENDENT ON THE CHEMICAL AND THE MAGNITUDE OF THE EFFECT IS USUALLY NO MORE THAN 1 ORDER OF MAGNITUDE AND OFTEN IS CONSIDERABLY LESS THE STUDY'S MAIN CONCERN IS THAT PESTICIDE REGULATION IS LARGELY BASED ON ADULT NOT CHILDHOOD DIETARY PATTERNS THUS KIDS COULD BE EATING LARGER QUANTITIES OF PESTICIDES THAN POSTULATED BY EXISTING FOOD QUALITY STANDARDS BUT HOW GREATLY DO DIETARY PATTERNS DIFFER IT'S HARD TO SAY GENERALLY IT IS ASSUMED THAT INFANTS AND CHILDREN EAT PROPORTIONATELY MORE FRUITS AND VEGETABLES THAN DO ADULTS BUT DATA COLLECTED BY EPA INDICATE THAT IT SHOULDN'T MAKE ANY DIFFERENCE THE AGENCY UNDERTOOK A MASSIVE EXAMINATION OF 86000 SAMPLES OF FOOD MORE THAN HALF OF WHICH WERE FRUITS AND VEGETABLES IN 1988 AND FOUND THAT 81 OF THOSE SAMPLES HAD NO DETECTABLE PESTICIDE RESIDUES UNDER SUCH CIRCUMSTANCES IT'S CLEAR THAT HEAVY CONSUMPTION OF FRUITS AND VEGETABLES DOES NOT APPRECIABLY THREATEN HUMAN HEALTH THAT CONCLUSION IS UNDERSCORED BY ANNUAL FDA FOOD SURVEILLANCE DATA THAT INDICATE THAT FRUITS AND VEGETABLES RARELY HAVE ANYWHERE NEAR THE MAXIMUM CHEMICAL TOLERANCE LEVEL SET BY EPA GLOSSED OVER IN THE NRC REPORT IS THE FACT THAT THE ENTIRE PROCESS OF ASSESSING RISKS OF PESTICIDE CONTAMINATION IS BASED ON THE DUBIOUS PRACTICE OF ANIMAL LABORATORY TESTS GIVEN THAT ANIMAL LABORATORY TESTS HAVE FOUND HALF OF ALL NATURAL CHEMICAL COMPOUNDS TO BE CARCINOGENIC INCLUDING VITAMIN A ONE MUST QUESTION WHY NRC OR THE FEDERAL GOVERNMENT CONTINUES TO RELY ON A PRACTICE THAT IS BASED ON AT LEAST 50 ASSUMPTIONS NONE OF WHICH HAVE BEEN SCIENTIFICALLY DEMONSTRATED AS NOTED BY RONALD HART DIRECTOR OF THE NATIONAL CENTER FOR TOXICOLOGICAL RESEARCH EVEN SO THE NRC REPORT MAKES A CASE FOR ERRING ON THE SIDE OF SAFETY NO ONE COULD REALLY OBJECT TO THAT BUT EPA ALREADY DOES SO BY MULTIPLYING PESTICIDE SAFETY STANDARDS BY A FACTOR OF BETWEEN 100 AND 1000 TO ACCOUNT FOR THE VERY UNCERTAINTIES IDENTIFIED IN THE REPORT KIDS MIGHT BE MORE VULNERABLE TO TOXINS THAN ADULTS BUT THE DIFFERENCES IF THEY EXIST ARE USUALLY LESS THAN A FACTOR OF APPROXIMATELY 10FOLD ISN'T THAT ALREADY ACCOUNTED FOR BY EPA'S PRACTICE OF UTILIZING A 100 TO 1000 SAFETY FACTOR THE NRC ACKNOWLEDGES THAT ITS REPORT SHOULD BE REGARDED AS AN ASSESSMENT OF METHODOLOGY RATHER THAN A SPECIFIC ATTEMPT TO CHARACTERIZE THE PROPORTION OF CHILDREN AT RISK YET THE ENVIRONMENTAL LOBBY THE CLINTON ADMINISTRATION AND THE MASS MEDIA INSIST THAT THE REPORT IS SOMETHING IT IS NOT A BRIEF PROVING ONCE AND FOR ALL THAT OUR KIDS ARE AT RISK THANKS TO LAX PESTICIDE STANDARDS WHAT THE REPORT DOES SAY IS THAT THERE'S A LOT WE DON'T KNOW THAT WHAT WE DON'T KNOW MAY OR MAY NOT IMPLY THAT CHILDREN ARE AT GREATER RISK AND THAT UNTIL WE LEARN MORE FOOD SAFETY STANDARDS OUGHT TO BE TIGHTENED THE FIRST TWO STATEMENTS ARE TRUE BUT THE CONCLUSION THAT FOOD SAFETY STANDARDS ARE INADEQUATE TODAY SIMPLY FLIES IN THE FACE OF ALL THE DATA MR TAYLOR IS THE DIRECTOR OF NATURAL RESOURCE STUDIES AT THE CATO INSTITUTE IN WASHINGTON DC SEE RELATED LETTER LETTERS TO THE EDITOR OSTRICHLIKE APPROACH TO PESTICIDE RISKS WSJ AUG 19 1993 9307190020 YY93 MM08 9308180151 930818 BUSINESS BRIEF APPLIED MATERIALS' NET IN FISCAL 3RD PERIOD EXCEEDS EXPECTATIONS SANTA CLARA CALIF APPLIED MATERIALS INC BENEFITING FROM A RUSH AMONG THE WORLD'S SEMICONDUCTOR MAKERS TO OUTFIT FACTORIES WITH NEW CHIPMAKING EQUIPMENT POSTED BETTERTHANEXPECTED NET INCOME FOR ITS FISCAL THIRD QUARTER APPLIED THE BIGGEST US MAKER OF CHIPPRODUCTION EQUIPMENT POSTED NET INCOME OF 282 MILLION OR 68 CENTS A SHARE IN THE QUARTER ENDED AUG 1 UP FROM NET OF 107 MILLION OR 30 CENTS A SHARE IN THE YEAREARLIER QUARTER WHEN THERE WERE FEWER SHARES OUTSTANDING THE PERSHARE EARNINGS BESTED FINANCIAL ANALYSTS' MEAN ESTIMATE BY 15 ACCORDING TO ZACKS INVESTMENT RESEARCH INC IT WAS A BLOWOUT QUARTER A BIG UPSIDE SURPRISE SAID ANALYST DANIEL KLESKEN OF ROBERTSON STEPHENS & CO WHO PREDICTED A JUMP IN APPLIED'S STOCK PRICE TODAY THE COMPANY REPORTED ITS EARNINGS AFTER THE CLOSE OF TRADING YESTERDAY APPLIED'S STOCK MORE THAN DOUBLED IN PRICE THIS YEAR TO A PEAK OF 7150 EARLIER THIS MONTH AFTER A STRING OF STRONG QUARTERS THE STOCK CLOSED AT 7050 UP 25 CENTS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY APPLIED'S THIRDQUARTER EARNINGS WERE DRIVEN BY STRONG GROWTH IN SALES ACROSS ITS PRODUCT LINE AND IN ALL ITS MAJOR WORLD MARKETS SALES ROSE 45 TO 2814 MILLION FROM 1938 MILLION A YEAR AGO THE STRONG SALES EVEN INTO SLUGGISH ECONOMIES SUCH AS JAPAN'S STEM FROM A SURGE IN DEMAND FOR CHIPS FROM INDUSTRIES SUCH AS PERSONAL COMPUTERS AND TELECOMMUNICATIONS COMBINED WITH A WORLDWIDE SHORTAGE OF CHIPMAKING CAPACITY CHIP MAKERS NOW ARE RUSHING TO BUY NEW EQUIPMENT SAID ANALYST MARK FITZGERALD OF HAMBRECHT & QUIST FROM OUR VANTAGE POINT IT'S A GREAT SECTOR THROUGH 1994 HE SAID BECAUSE SEMICONDUCTOR MAKERS HAVE UNDERINVESTED SINCE 1989 WHEN THE JAPANESE STARTED SLOWING DOWN CAPITAL INVESTMENT APPLIED SAID ITS ORDER BACKLOG ROSE TO 3313 MILLION IN THE QUARTER FROM 2869 MILLION AT THE END OF THE SECOND QUARTER OF FISCAL 1993 9308180150 930818 SAFEGUARD BUYS BACK SHARES WAYNE PA SAFEGUARD SCIENTIFICS INC SAID IT REPURCHASED 400000 SHARES OF ITS COMMON FROM METALLGESELLSCHAFT CORP FOR THE PREVIOUSLY NEGOTIATED PRICE OF 20 A SHARE SAFEGUARD SAID METALLGESELLSCHAFT SOLD ALL OF ITS HOLDINGS ABOUT 8 OF SAFEGUARD'S 51 MILLION SHARES BECAUSE OF A CHANGE IN STRATEGIC DIRECTION SAFEGUARD IS AN INFORMATION SYSTEMS COMPANY 9308180149 930818 WORKPLACE LONGER COMMUTES FORCE PARENTS TO MAKE TOUGH CHOICES ON WHERE TO LEAVE THE KIDS BY SUE SHELLENBARGER STAFF REPORTER OF THE WALL STREET JOURNAL WHEN BRENDA BUSSEY GOT THE CALL AT WORK THAT EVERY PARENT DREADS SHE DROPPED EVERYTHING AND RACED HOME ANOTHER CHILD HAD HIT HER FOURYEAROLD SON NICHOLAS OVER THE HEAD WITH A BLOCK AND THERE'S A LOT OF BLOOD I THINK YOU'D BETTER COME HER SITTER TOLD HER NEARLY AN HOUR LATER MS BUSSEY ARRIVED AT THE SITTER'S HOUSE AFTER SPEEDING 42 MILES OVER THE FREEWAY FROM HER JOB IN RIVERSIDE CALIF ACROSS THE SAN ANDREAS FAULT OVER A 4200FOOT MOUNTAIN PASS AND ONTO THE MOJAVE DESERT TO HER HESPERIA CALIF EXURB NICHOLAS WAS FINE BUT MS BUSSEY NEEDED TO SEE THAT FOR HERSELF TO THE ALREADY STRESSFUL LIVES OF WORKING PARENTS ADD ANOTHER PRESSURE ARDUOUS COMMUTES MORE PEOPLE ARE TRAVELING FARTHER THAN EVER TO THEIR JOBS WITH THE AVERAGE WORKER SPENDING 13 MORE TIME ON THE ROAD IN 1985 THAN IN 1975 A NUMBER THAT IS PROBABLY STILL RISING SAYS LAURA LEETE A RESEARCHER FOR THE ECONOMIC POLICY INSTITUTE IN WASHINGTON A GROWING NUMBER OF COMMUTERS ALSO HAVE CHILDREN IN CHILD CARE THAT POSES A DILEMMA THEIR PARENTS NEVER FACED SHOULD THEY LEAVE THEIR CHILDREN BEHIND WITH CAREGIVERS IN THAT NICE SUBURBAN NEIGHBORHOOD WHERE THEY MOVED TO RAISE A FAMILY OR SHOULD THEY COMMUTE WITH THEM TO A CHILDCARE CENTER CLOSE TO WORK SO THAT THEY CAN RUSH TO THEM FOR LUNCH OR EMERGENCIES FOR MOST PARENTS THERE'S NO GOOD ANSWER THERE ARE TWO SOURCES OF CHILDCARE STRESS WHEN THEY'RE SOMEWHERE ELSE AND WHEN THEY'RE NEAR YOU SAYS ARTHUR EMLEN PROFESSOR EMERITUS OF SOCIAL WORK AT PORTLAND STATE UNIVERSITY IN OREGON AND A CONSULTANT ON DEPENDENTCARE ISSUES THE CHILDCARE INDUSTRY BETTING THAT THE BABIESANDBRIEFCASES COMMUTER CROWD WILL GROW IS BUILDING MORE CENTERS NEAR WORK SITES AND COMMUTER STATIONS FEDERAL AND CITY GOVERNMENTS ARE SPEEDING THE TREND IN SOME REGIONS BY ADDING DOWNTOWN CHILDCARE FACILITIES BUT PLACING A CHILD IN A CENTER CLOSE TO WORK CAN POSE PROBLEMS TUITION AT URBAN CHILDCARE CENTERS OFTEN RUNS 750 A MONTH OR HIGHER SOME PARENTS WORRY ABOUT THEIR CHILD'S WELLBEING DURING A LONG COMMUTE AND TREKKING LONG DISTANCES WITH KIDS CAN BE EXHAUSTING FOR PARENTS LEAVING THE CHILDREN NEAR HOME IS NO STROLL IN THE PARK EITHER MANY SITTERS AND CENTERS KEEP 10 OR 11HOUR WORKDAYS FORCING COMMUTER PARENTS TO CUT OFFICE HOURS SHORT AND TAKE WORK HOME TRAFFIC JAMS AND TRAIN BREAKDOWNS CAN WRECK PICKUP PLANS AT A COST OF A 1AMINUTE LATE FEE AT SOME CHILDCARE CENTERS AND IN EMERGENCIES PARENTS MAY SPEND ANXIOUS HOURS RUSHING TO THEIR CHILD'S SIDE FOR MS BUSSEY THE TRADEOFFS IN CHOOSING NEIGHBORHOOD CARE MAKE SENSE SORT OF HER HOUSE 70 MILES EAST OF LOS ANGELES HAS NEARLY TWICE THE SPACE OF THE FAMILY'S OLD CONDO IN CUCAMONGA AS WELL AS A ONEACRE LOT AND A MOUNTAIN VIEW SHE RESPECTS AND TRUSTS THE SITTER TERESA ROBILLARD WHO CARES FOR HER 18MONTHOLD TWINS AND NICHOLAS AND SHE LIKES HAVING NICHOLAS NEAR NEIGHBORHOOD FRIENDS AND SCHOOLS BUT HER DAILY ROUTINE IS A RACE AGAINST THE CLOCK MS BUSSEY WAKES UP AT 4 AM TO GET THE CHILDREN TO MS ROBILLARD'S HOUSE BY 545 AM SO THAT SHE CAN GET TO WORK ON TIME NICHOLAS NOW SIX IS STILL SLEEPING THEN AND I HAVE TO CARRY HIM IN MS BUSSEY SAYS I HAVE NO BACK LEFT FROM THAT AND BECAUSE HER HUSBAND COMMUTES EVEN FARTHER TO HIS JOB THAN SHE DOES SHE WORRIES ABOUT WHAT'S GOING TO HAPPEN IF I CAN'T GET TO THE CHILDREN WHEN SNOW CLOSES THE MOUNTAIN PASS BETWEEN HER HOME AND THE OFFICE HER SITTER SOMETIMES CALLS AND SAYS NOT TO WORRY SHE'LL KEEP THE CHILDREN ALL NIGHT OTHER PARENTS ARE DRIVEN TO NEIGHBORHOOD CARE BY THE HASSLES OF COMMUTING WITH KIDS JUGGLING LUNCHBOXES EXTRA CLOTHES STROLLERS AND BRIEFCASES ON A COMMUTER TRAIN AND RUNNING UP AND DOWN SUBWAY STAIRS WITH YOUR CHILD CAN BE A NIGHTMARE SAYS LORRAINE CHUN NG A PUBLIC HEALTH ADMINISTRATOR IN MANHATTAN WHO HAS DONE IT CONSIDER THE CASE OF THE EXPLODING BABY BOTTLE SHEILA MCNULTY ENTENMAN A FEDERAL GOVERNMENT ATTORNEY IN CHICAGO WAS QUIETLY FEEDING HER BABY WHILE COMMUTING ON THAT CITY'S ELEVATED TRAIN WHEN SHE HEARD A LOUD POP AND FOUND HERSELF COVERED WITH FORMULA HER BABY HAD SUCKED SO HARD THAT THE NIPPLE INVERTED AND THE LID BLEW OFF LIKE A BOMB SPRAYING GLOBS OF FORMULA MY FIRST THOUGHT WAS OH NO IT'S ALL OVER SOMEBODY'S 300 SUIT' MS ENTENMAN SAYS LUCKILY IT WASN'T I WAS LOOKING AT PEOPLE THINKING DID YOU JUST SEE WHAT I SAW' BUT THEY JUST GLANCED UP LIKE THEY WERE SAYING NO' AND WENT BACK TO THEIR NEWSPAPERS LIKE MANY PARENTS MS ENTENMAN FELT THAT KEEPING HER BABY CLOSE TO HER WAS BEST BUT SOME COMMUTERS MADE HER FEEL GUILTY PEOPLE WOULD WALK UP TO ME AND SAY HOW COULD YOU BRING A CHILD OUT AND SUBJECT HER TO THIS' I WOULD COME HOME AND ASK MY HUSBAND AM I A TERRIBLE MOTHER' SAYS MS ENTENMAN MS ENTENMAN AND HER HUSBAND SOON MOVED TO A RENTED HOME WHICH THEY CHOSE PARTLY BECAUSE IT IS NEAR A CHILDCARE CENTER IN SUBURBAN GLENVIEW BUT THE CENTER CLOSES AT 6 PM ANOTHER SOURCE OF STRAIN IF MS ENTENMAN IS STUCK IN COURT PAST 5 PM I WILL SOMETIMES NONCHALANTLY WHILE THE JUDGE IS ISSUING HIS DECISION SLOWLY SLIP OFF ONE SHOE AND START GETTING MY SNEAKERS ON SHE SAYS THAT RAISES THE ODDS THAT SHE CAN SPRINT FAST ENOUGH ACROSS THE LOOP TO CATCH THE 515 TRAIN TO THE CENTER WHEN SHE AND HER HUSBAND BUY A HOME SHE ADDS A CHILDCARE CENTER NEARBY WILL BE A PREREQUISITE BUT HIGHQUALITY NEIGHBORHOOD CARE IS SCARCE WHEN PATRICE FREEMAN RETURNED TO WORK IN MANHATTAN FROM HER STATEN ISLAND HOME AFTER THE BIRTH OF HER DAUGHTER GABRIELLE HER NEW NANNY SOON GAVE A WEEK'S NOTICE THAT SHE WAS TAKING A TWOWEEK VACATION THEN FAILED TO RETURN TO WORK AS PLANNED SO MS FREEMAN HIRED ANOTHER SITTER WHO OVERSLEPT ON THE DAY MS FREEMAN WAS TO HOST A BIG MEETING FORCING HER TO TAKE GABRIELLE TO WORK WITH HER THE WHOLE DAY WAS SHOT FOR ME I WAS EMOTIONALLY A WRECK MS FREEMAN SAYS AFTER A FAILED CAMPAIGN TO GET HER EMPLOYER TO SUBSIDIZE EMPLOYEES' TUITION AT A CHILDCARE CENTER IN DOWNTOWN MANHATTAN MS FREEMAN A PURCHASING MANAGER SWITCHED TO A HIGHERPAYING JOB AS A SALES REPRESENTATIVE SO SHE COULD AFFORD THE TUITION HERSELF NOW SHE COMMUTES AN HOUR DAILY BY FERRY AND BUS WITH HER CHILD TO THE CENTER SIMILARLY MS NG FOUND THE CHILDCARE CENTERS NEAR HER QUEENS HOME WOEFULLY INADEQUATE WITH TOO MANY CHILDREN PER TEACHER INADEQUATE FACILITIES AND TOOSHORT HOURS SO SHE FIGHTS CITY TRAFFIC FOR TWO HOURS EACH DAY AND PAYS 220 A MONTH FOR PARKING IN MANHATTAN SO THAT HER FOURYEAROLD SON CAN ATTEND BUCKLE MY SHOE THE DOWNTOWN CENTER MS FREEMAN USES HER TOTAL CHILDCARE COSTS WITH PARKING 1100 A MONTH THE PAYOFF SHE LIKES THE CURRICULUM AND MY SON REALLY LOVES TO GET UP AND GO TO SCHOOL SHE SAYS CHILDCARE CENTERS AND ENTREPRENEURS ARE CREATING NEW PROGRAMS FOR SUCH COMMUTER PARENTS TWO DENVERAREA WOMEN HAVE STARTED KIDS WHEELS A CHAUFFEUR SERVICE FOR KIDS WHOSE PARENTS WORK TOO FAR AWAY TO TAKE THEM TO AFTERSCHOOL ACTIVITIES SUNSHINE CHRISTIAN PRESCHOOL IN HESPERIA IS LENGTHENING ITS HOURS TO OPEN AT 615 AM IT SERVES THREE MEALS A DAY KEEPING EXTRA SUPPLIES ON HAND IN CASE A BLIZZARD PREVENTS PARENTS FROM GETTING HOME AT ALL SOME PARENTS MANAGE TO MAKE COMMUTING WITH KIDS ENRICHING ROBERT MARTIN AND HIS WIFE TURN THEIR CAR INTO A ROLLING PRESCHOOL FOR THEIR SON BILLIE 18 MONTHS DURING THEIR 170MILE DAILY ROUND TRIP BETWEEN BOSTON AND THEIR HOME ON CAPE COD EACH DAY THEY PACK A DIAPER BAG A STROLLER THREE MEALS IN A COOLER 15 BOOKS A BAG OF TOYS AND CRAYONS AND PAPER BILLIE HAS BREAKFAST AND DINNER ON THE ROAD WITH HIS PARENTS PLUS A LITTLE NONMOVING QUALITY TIME AFTER THEY GET HOME AT 7 PM MR MARTIN SAYS THE CARE BILLIE HAS BEEN GETTING THIS SUMMER AT A BACKUP CHILDCARE CENTER PARTLY FUNDED BY MR MARTIN'S EMPLOYER SCUDDER STEVENS & CLARK MAKES THE TRIP WORTHWHILE MR MARTIN SAYS 9308180148 930818 CANADIAN STORE SALES DROP OTTAWA CANADIAN DEPARTMENT STORE SALES TOTALED 933 MILLION CANADIAN DOLLARS US7104 MILLION IN JULY A 39 DECLINE FROM A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID JULY WAS THE FOURTH CONSECUTIVE MONTH IN WHICH DEPARTMENT STORE SALES WERE DOWN FROM THEIR YEAREARLIER LEVEL 9308180147 930818 APPLIED INNOVATION STOCK SALE WORTHINGTON OHIO APPLIED INNOVATION INC SAID IT COMPLETED A PRIVATE PLACEMENT OF 15 MILLION IN COMMON STOCK WITH INDEPENDENT ORDER OF FORESTERS A TORONTO INSURANCE COMPANY THE DESIGNER MAKER AND MARKETER OF INTERNAL DATA COMMUNICATIONS NETWORK SWITCHING PRODUCTS SAID IT WILL USE THE MONEY FOR GENERAL CORPORATE PURPOSES 9308180146 930818 PHILLIPS COMPLETES TEST WELL BARTLESVILLE OKLA PHILLIPS PETROLEUM CO SAID IT COMPLETED A TEST WELL IN THE GARDEN BANKS AREA ABOUT 130 MILES OFFSHORE LOUISIANA THE GARDEN BANKS 70 NO 2 WELL TESTED 95 MILLION CUBIC FEET OF NATURAL GAS A DAY AND 65 BARRELS OF CONDENSATE AN OILLIKE SUBSTANCE PHILLIPS WHICH HAS A 100 WORKING INTEREST IN THE WELL SAID IT'S CURRENTLY EVALUATING DEVELOPMENT OPTIONS FOR THIS DISCOVERY AND AN ADJACENT DISCOVERY ANNOUNCED LAST APRIL 9308180145 930818 CRYSTAL BRANDS'S LOSS GREW IN 2ND PERIOD TRADEMARK SALE IS SET SOUTHPORT CONN CRYSTAL BRANDS INC IN REPORTING A WIDENED LOSS FOR ITS FISCAL SECOND QUARTER SAID IT SIGNED A LETTER OF INTENT TO SELL ITS EVANPICONE APPAREL TRADEMARK TO A JONES APPAREL GROUP INC UNIT FOR 20 MILLION AND CERTAIN FUTURE ROYALTY PAYMENTS FOR THE QUARTER WHICH ENDED JULY 3 CRYSTAL BRANDS POSTED A NET LOSS OF 1045 MILLION OR 1146 A SHARE RESULTING IN PART FROM AN 82 MILLION LOSS PROVISION RELATED TO THE PROPOSED SALE OF THE TRADEMARK IN THE YEAREARLIER PERIOD THE JEWELRY AND APPAREL MAKER HAD A LOSS OF 183 MILLION OR 201 A SHARE SALES FELL 15 IN THE RECENTLY ENDED QUARTER TO 109 MILLION FROM 1289 MILLION AS HIGHER INTEREST COSTS AND INCREASED INCOMETAX PROVISIONS MORE THAN OFFSET STRONGER MARGINS AND LOWER EXPENSES THE SALE OF EVANPICONE WILL HELP US IN OUR PROGRAM TO ACHIEVE AN EARNINGS TURNAROUND AND TO LOWER OUR INDEBTEDNESS AND INTEREST EXPENSE THE COMPANY SAID THE TRADEMARK IS TO BE SOLD TO JONES INVESTMENT CO CRYSTAL BRANDS ALSO SAID CHARLES J CAMPBELL 48 YEARS OLD HAS JOINED THE COMPANY SUCCEEDING GORDON E ALLEN AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR CAMPBELL IS FORMER PRESIDENT AND CHIEF EXECUTIVE OF MUNSINGWEAR INC MINNEAPOLIS THE EXECUTIVE CHANGE WAS ANNOUNCED EARLIER MR ALLEN 67 WHO WAS NAMED CHAIRMAN OF THE COMPANY'S EXECUTIVE COMMITTEE AND WHO WILL CONTINUE AS A DIRECTOR WAS GUARDED ABOUT THE SHORTTERM PROSPECTS FOR CRYSTAL BRANDS WE ARE VERY CAUTIOUS ABOUT THE OUTLOOK FOR THE REMAINDER OF THE YEAR AS RETAILERS ARE CONTINUING TO DISCOUNT IN AN EFFORT TO OVERCOME DECLINING CONSUMER CONFIDENCE HE SAID CRYSTAL BRANDS MAKES APPAREL UNDER THE GANT SALTY DOG AND IZOD BRAND NAMES JONES APPAREL MAKES WOMEN'S SPORTSWEAR AND SUITS AND SELLS UNDER ITS FLAGSHIP LABEL JONES NEW YORK 9308180144 930818 ECONOMY HOUSING STARTS DECLINED AGAIN DURING JULY PACE REMAINS SLOW DESPITE LOW INTEREST RATES KEY IS SAID TO BE JOB MARKET BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOMEBUILDING CONTINUED TO WEAKEN IN JULY AS LOW INTEREST RATES FAILED TO OVERCOME A PERSISTENT RELUCTANCE AMONG CONSUMERS AND AN AILING ECONOMY IN CALIFORNIA HOUSING STARTS DECLINED 27 LAST MONTH TO AN ANNUAL RATE OF 1212000 THE COMMERCE DEPARTMENT SAID FOLLOWING A REVISED 02 DECLINE IN JUNE THE LESSTHANROBUST PACE MEANT MORE DISAPPOINTMENT FOR THE HOUSING INDUSTRY PARTICULARLY IN THE FACE OF THE LOWEST MORTGAGE RATES IN MORE THAN 20 YEARS THE INDUSTRY HAD HOPED THE LOW RATES WOULD ENCOURAGE MORE DEMAND BUT THE HOUSING MARKET WILL BE WEAKER THAN YOU'D EXPECT UNTIL THE EMPLOYMENT PICTURE IMPROVES SAID DAVID BERSON CHIEF ECONOMIST FOR THE FEDERAL NATIONAL MORTGAGE ASSOCIATION WHAT IS HOLDING HOUSING BACK IS LACK OF CONFIDENCE CAUSED BY WEAKNESS IN THE JOB MARKET HE SAID ECONOMISTS SAID THE HEAVY MIDWEST RAINS AND FLOODS WERE PARTLY TO BLAME FOR THE JULY DROP AND WOULD ALSO AFFECT AUGUST STARTS BUT HOUSING STARTS IN THE MIDWEST DECLINED ONLY 4 WHILE THEY FELL NEARLY 12 IN THE WEST THAT'S BECAUSE OF THE CONTINUED DEPRESSED ECONOMIC CONDITIONS AND JOB LOSSES IN SOME AREAS OF CALIFORNIA SUCH WESTERN CITIES AS DENVER AND PHOENIX ARE DOING WELL ECONOMISTS SAID IF WE WERE TO TAKE CALIFORNIA OUT OF THE STATISTICS THIS WOULD LOOK LIKE A VERY GOOD HOUSING YEAR SAID MICHAEL CARLINER AN ECONOMIST FOR THE NATIONAL ASSOCIATION OF HOME BUILDERS CONSTRUCTION ROSE IN THE NORTHEAST AND SOUTH ECONOMISTS TOOK SOME HEART IN A RISE IN BUILDING PERMITS A PRECURSOR OF CONSTRUCTION PERMITS WERE ISSUED IN JULY AT AN ANNUAL RATE OF 1149000 UP 3 FROM JUNE AND THE HIGHEST LEVEL SINCE JANUARY PERMITS ROSE FOR SINGLEFAMILY HOMES BUT FELL FOR MULTIFAMILY BUILDINGS THE RISE IN PERMITS SINCE JANUARY SUGGESTS HOUSING STARTS WILL RESUME THEIR CLIMB ACCORDING TO CJ LAWRENCE INC NEW YORK INVESTMENT HOUSE WE ARE HOPEFUL THAT WE ARE GOING TO SEE SOME IMPROVEMENT IN THE MONTHS AHEAD ADDED THE HOME BUILDERS' MR CARLINER ACTUAL SINGLEFAMILY STARTS WERE OFF 17 IN JULY HOWEVER TO 1060000 WHILE MULTIFAMILY STARTS DECLINED 95 TO 152000 THE DROP IN SINGLEFAMILY CONSTRUCTION WAS MORE DISAPPOINTING MR CARLINER SAID BECAUSE MULTIFAMILY UNITS SHOWED AN ABNORMALLY LARGE INCREASE IN JUNE MULTIFAMILY HOUSING CONSTRUCTION HAS BEEN WEAK FOR SOME TIME BECAUSE OF AN OVERBUILT MARKET ALL THE FIGURES ARE ADJUSTED FOR SEASONAL CHANGES 9308180143 930818 BUSINESS BRIEF MERCANTILE BANCORP AGREES TO ACQUIRE UNITED POSTAL BANCORP IN STOCK SWAP ST LOUIS MERCANTILE BANCORP AGREED TO ACQUIRE UNITED POSTAL BANCORP IN A 1772 MILLION STOCK SWAP THE BANK HOLDING COMPANY SAID THE PURCHASE OF UNITED POSTAL ONE OF THE LARGEST MORTGAGE LENDERS AND SERVICERS IN THE ST LOUIS AREA WILL FURTHER STRENGTHEN MERCANTILE'S RETAIL BASE AND MORTGAGE OPERATIONS MERCANTILE WHICH IS SOMETIMES CONSIDERED TO BE A POTENTIAL ACQUISITION CANDIDATE ITSELF LAST MONTH AGREED TO ISSUE ABOUT 55 MILLION OF STOCK TO ACQUIRE CLOSELY HELD METRO BANCORP OF WATERLOO IOWA MARKING MERCANTILE'S ENTRY INTO THAT STATE WHEN THE METRO TRANSACTION CLOSES MERCANTILE WILL HAVE OPERATIONS IN MISSOURI KANSAS IOWA AND ILLINOIS MERCANTILE HAS 101 BILLION IN ASSETS UNITED POSTAL PARENT OF UNITED POSTAL SAVINGS ASSOCIATION HAD ASSETS OF 13 BILLION AT JUNE 30 NET IN THE FIRST SIX MONTHS WAS 91 MILLION OR 137 A SHARE IN THE TRANSACTION MERCANTILE WILL EXCHANGE 06154 SHARE OF ITS COMMON FOR EACH OF UNITED POSTAL'S NEARLY SIX MILLION SHARES OUTSTANDING BASED ON MERCANTILE'S 48 CLOSING PRICE ON THE NEW YORK STOCK EXCHANGE YESTERDAY THE EXCHANGE RATIO WOULD PROVIDE UNITED POSTAL SHAREHOLDERS WITH STOCK CURRENTLY VALUED AT 2953 A SHARE IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY UNITED POSTAL SHARES WERE UP 350 OR 15 TO 2675 HOLDERS WHO ACQUIRED UNITED POSTAL SHARES AT 10 APIECE WHEN THE THRIFT CONVERTED TO A STOCK FORMAT FROM A MUTUAL SHARE IN MARCH 1992 WILL HAVE SEEN THEIR INVESTMENT ABOUT TRIPLE RAYMOND CABILLOT AN ANALYST WITH FIRST BOSTON CORP TOLD DOW JONES PROFESSIONAL INVESTOR REPORT THAT THE COMBINATON LOOKS VERY SOLID IN PART BECAUSE UNITED POSTAL BRINGS TREMENDOUS LOANORIGINATION PRODUCTION TO THE TABLE AS PART OF THE AGREEMENT UNITED POSTAL GRANTED MERCANTILE AN OPTION TO BUY 199 OF UNITED POSTAL'S COMMON STOCK OUTSTANDING SUCH LOCKOUT PROVISIONS DESIGNED TO DISCOURAGE THE APPEARANCE OF A COMPETING BID ARE COMMON IN FRIENDLY ACQUISITIONS THE TRANSACTION WHICH IS EXPECTED TO CLOSE EARLY NEXT YEAR IS SUBJECT TO APPROVAL BY UNITED POSTAL SHAREHOLDERS AND BY REGULATORS 9308180142 930818 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9308180141 930818 LETTERS TO THE EDITOR MASTER PICADOR GORES THE LIBERAL OX MILTON BECKERMAN LETTERS JULY 22 IS WAY OFF BASE IN HIS CRITICISM OF RUSH LIMBAUGH AND HIS CONFUSION VALIDATES THE IMPORTANCE OF MR LIMBAUGH'S MESSAGE RUSH LIMBAUGH HAS NEVER REVILED THE OFFICE OF THE PRESIDENT RATHER HE HAS REVILED THE PERSON OCCUPYING THAT OFFICE THE DIATRIBE AGAINST MR CLINTON IS THE ONE CONSISTENT WIDELY HEARD REBUTTAL OF THE BIG LIE THAT THE RICH WERE FAVORED BY THE TAX REDUCTIONS OF THE REAGANBUSH ERA IRS DATA DEMONSTRATE THAT UNDER LOWER TAX RATES UPPERINCOME TAXPAYERS PAID MORE IN BOTH IN ABSOLUTE DOLLARS AND IN PERCENTAGE COLLECTED THAN MIDDLE AND LOWERCLASS TAXPAYERS NOT LESS IT IS THE CONTINUOUS REPETITION OF THE LIE UNCONTESTED BY THE MEDIA THAT THE RICH BENEFITED UNFAIRLY THAT REPRESENTS THE GREATER THREAT TO THE FUTURE OF OUR COUNTRY AND THAT DEMEANS THE OFFICE OF THE PRESIDENCY NOT MR LIMBAUGH MR BECKERMAN'S REMARK THAT WE CAN'T LAUGH OFF A BUFFOON NO MATTER HOW WIDELY READ OR LISTENED TO IF HIS CONDUCT IS SUCH AS TO UNDERMINE A FUNDAMENTAL GOVERNMENT INSTITUTION APPLIES MORE TO MR CLINTON THAN IT DOES TO MR LIMBAUGH TSK TSK TSK MR BECKERMAN OBVIOUSLY CAN'T TAKE THE HEAT WHERE WERE THESE FERVENT APOCALYPTIC HYPERBOLIC HYSTERICAL COMMENTS WHEN THE DOMINANT MEDIA CULTURE SAVAGED THE REAGANBUSH ADMINISTRATIONS DAILY FOR 12 YEARS HMMMM RUSH LIMBAUGH HAS ACHIEVED HIS SOARING POPULARITY IN MY VIEW BECAUSE OF HIS ARTICULATE AND HILARIOUS ANALYSIS OF THE ABSURDITIES OF MUCH OF THE LEFTWING POLITICAL AND SOCIAL THOUGHT AND BEHAVIOR HIS PROGRAM PROVIDES A POTENT VOICE FOR THE MILLIONS OF AMERICANS EXASPERATED WITH POLITICAL CORRECTNESS IMPERIAL GOVERNMENT AND THE LIBERAL BIAS OF MOST JOURNALISTS WHEN THE LIBERAL OX IS BEING GORED BY A MASTER PICADOR THE SQUEALS ARE HEARD THROUGHOUT THE LAND MR BECKERMAN SAYS RUSH LIMBAUGH'S CONSTANT CRITICISM OF MR CLINTON IS SOMETHING THE LIKES OF WHICH HAS NOT BEEN SEEN OR HEARD IN THIS COUNTRY BEFORE OH YEAH ASK FORMER VICE PRESIDENT DAN QUAYLE THE TARGET OF MEDIA TAUNTS AND STANDUP COMEDIANS FOR HIS WHOLE TERM OR STUDY THE HISTORY OF AMERICAN ELECTIONS INCLUDING ABRAHAM LINCOLN'S CAMPAIGNS AND ADMINISTRATION LINCOLN WAS VILIFIED CONSTANTLY WHAT MAKES MR LIMBAUGH'S TAUNTS EVEN MORE ACCEPTABLE IS THE FACT THAT 57 OF US DID NOT VOTE FOR CLINTON HAD IT NOT BEEN FOR ROSS PEROT AN HONEST COURAGEOUS GEORGE BUSH A HEROIC WAR VETERAN WOULD STILL BE PRESIDENT DID MR BECKERMAN AND ALL OTHER RUSH CRITICS FEEL SUCH OUTRAGE WHEN DAN QUAYLE WAS THE TARGET OF THE ENTIRE LEFTWING MEDIA RUSH IS JUST ONE PERSON ONCE DAVID LETTERMAN SAID THE BUSHES' DOG MILLIE WAS TEACHING VICE PRESIDENT QUAYLE TO DRINK OUT OF WHITE HOUSE TOILETS A QUIP DAVE AND HIS COMEDY WRITERS OBVIOUSLY THOUGHT WAS FUNNY JOAN RIVERS'S AND JAY LENO'S JOKES WERE ONLY SLIGHTLY LESS DISGRACEFUL AND THEY WERE JUST THREE PEOPLE ON ONE NETWORK NBC I HEAR FAR MORE CLINTON CRITICISM AT MY LOCAL DINER THAN RUSH HAS EVER COME UP WITH PRESIDENT BUSH WAS DEPICTED ALMOST DAILY AS A NONENTITY BY GARRY TRUDEAU WHOSE ACERBIC WIT AND PEN ALSO WAS USED MERCILESSLY TO LAMPOON RONALD REAGAN AND DAN QUAYLE SINCE THE EARLY '80S IT WAS THE STOCK MATERIAL OF COMEDIANS AND EDITORIALISTS TO REFER TO THE GOP ADMINISTRATION AS UNCARING RACIST AND IN PRESIDENT REAGAN'S CASE ASLEEP AT THE WHEEL OR STAFF MEETING I BECAME QUITE TOLERANT OF THE STANDARD LAMBASTING THAT CELEBRITIES GAVE MESSRS REAGAN AND BUSH BLAMING THEM FOR HOMELESSNESS AIDS NUCLEAR PROLIFERATION AND ENVIRONMENTAL DETERIORATION AS MR BECKERMAN SAYS IT IS NOT ILLEGAL TO REVILE AND BELITTLE THE PRESIDENT DAILY SPEAKING FROM EXPERIENCE MY ADVICE TO HIM IS TO LEARN TO DEAL WITH THE LOYAL OPPOSITION WITH GRACE AND PRAY FOR OUR NATION'S SAKE THAT IT LASTS ONLY THREE AND A HALF MORE YEARS 9308180140 930818 ENTERPRISE GOVERNMENT WATCH SMALL BUSINESS WANTS PRIVATE INSURANCEBUYING POOLS BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL CLINTON'S PITCH FOR INSURANCEBUYING POOLS IS ALL WET SMALL BUSINESSES SAY UNTIL NOW THE FOCUS OF SMALLBUSINESS COMPLAINTS ABOUT PRESIDENT CLINTON'S PROPOSED HEALTHCARE OVERHAUL HAS BEEN THE ADMINISTRATION'S INSISTENCE THAT EVERY EMPLOYER PROVIDE COVERAGE FOR EMPLOYEES IT'S POISON TO US SAYS LESLIE AUBIN HEALTHCAREPOLICY ANALYST FOR THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS IT'S A NONNEGOTIABLE POINT BUT NOW AS DEBATE OVER THE PLAN INTENSIFIES SMALLBUSINESS GROUPS ALSO ARE SOLIDIFYING THEIR OPPOSITION TO ANOTHER ONE OF THE PROGRAM'S PROVISIONS THE FORMATION OF GIANT GOVERNMENTCONTROLLED COOPERATIVES TO NEGOTIATE GROUP COVERAGE WHILE SMALLBUSINESS GROUPS SUPPORT SUCH POOLS AS AN IMPORTANT TOOL IN HOLDING COSTS DOWN THEY OBJECT TO THE PRESIDENT'S PLAN TO SET UP HUGE GOVERNMENTRUN COOPERATIVES POSSIBLY ONE PER STATE THAT WOULD HAVE A MONOPOLY IN ACTING AS AN INTERMEDIARY BETWEEN BUSINESSES AND HEALTHCARE PROVIDERS WE'RE WORRIED THAT THE ADMINISTRATION WILL CONSTRUCT THEM THE COUNCILS AS REGULATORY AGENCIES AGENTS OF THE GOVERNMENT SAYS MS AUBIN WE WANT THEM TO BE PRIVATE AND LOCALLY CONTROLLED AND GARY KUSHNER CHAIRMAN OF NATIONAL SMALL BUSINESS UNITED'S HEALTHCAREPOLICY COMMITTEE SAYS THAT WHILE HIS GROUP HAS NO OBJECTION TO THE FORMATION OF QUASIPUBLIC POOLS IT WOULD LIKE TO SEE PRIVATELY ORGANIZED POOLS ALLOWED TO COMPETE WITH THEM SOME MEMBERS OF THE SENATE SMALL BUSINESS COMMITTEE PRESSED THE IDEA OF SIMPLY ENCOURAGING THE FORMATION OF MORE PRIVATE PURCHASING GROUPS FOR HEALTH INSURANCE WHEN HILLARY RODHAM CLINTON MET WITH COMMITTEE MEMBERS EARLY THIS MONTH THE ADMINISTRATION RESPONSE WAS THAT PRIVATE PURCHASING GROUPS ARE DEVELOPING TOO SPORADICALLY TO AFFECT MOST AMERICANS A COMMITTEE AIDE SAYS SBA LOAN CHANGES WILL CUT FEDERAL COSTS BUT WILL THEY CUT LENDING TOO BOTH HOUSES OF CONGRESS PASSED LEGISLATION THIS MONTH THAT WILL REDUCE THE GOVERNMENT GUARANTEE ON SOME SMALL BUSINESS ADMINISTRATION LOANS TO 70 OF THE LOAN AMOUNT FROM 80 IT ALSO WILL IMPOSE AN ANNUAL FEE OF 04 ON THE OUTSTANDING BALANCE OF SBA LOANS SOLD ON THE SECONDARY MARKET THE CHANGES WILL REDUCE THE GOVERNMENT'S COST OF SUPPORTING THE AGENCY'S LOANGUARANTEE PROGRAM WHICH HAS DOUBLED IN SIZE IN THE LAST TWO YEARS BUT LENDERS WHO USE THE PROGRAM SAY THE CHANGES MEAN THEY WILL MAKE FEWER LOANS TO THE SMALLEST BUSINESSES WHICH OFTEN NEED CAPITAL THE MOST THE ADMINISTRATION SAYS IT WANTS TO END THE CREDIT CRUNCH SAYS TONY WILKINSON PRESIDENT OF THE NATIONAL ASSOCIATION OF GOVERNMENT GUARANTEED LENDERS BUT IT JUST TOOK THE MOST POPULAR LOAN PROGRAM AND RAISED ITS COSTS TO ME THAT DOESN'T SOUND LIKE ENDING THE CREDIT CRUNCH ADVOCATES OF THE REVISIONS SAY THEY WERE NECESSARY TO KEEP COSTS DOWN CONGRESS HAS APPROVED EXTRA FUNDING FOR THE LOAN GUARANTEES SEVERAL TIMES THIS YEAR CUTTING OTHER PROGRAMS TO DO SO BUT THE NEW LEGISLATION WHICH ALSO LETS THE GOVERNMENT SHARE IN SOME OF THE PROFITS LENDERS MAKE IN SELLING THE GUARANTEED PORTION OF THE LOANS IN THE SECONDARY MARKET WILL SAVE TAXPAYER DOLLARS SBA OFFICIALS SAY OFFICIALS ALSO SAY THE CHANGES WILL ENABLE THE SBA TO MAKE MORE THAN 7 BILLION IN GUARANTEED LOANS IN FISCAL 1994 BEGINNING OCT 1 SUBSTANTIALLY MORE THAN THE AGENCY COULD HAVE MADE WITHOUT THE CHANGES HELP IS ON THE WAY FOR THE SBA'S PROGRAM TO HELP MINORITY FIRMS THE AGENCY IS LOOKING AT WAYS TO STREAMLINE THE CUMBERSOME APPLICATION PROCESS AND MAKE IT EASIER FOR MINORITYOWNED DISADVANTAGED COMPANIES TO PARTICIPATE IN THE 8A PROGRAM THAT SETS ASIDE GOVERNMENT CONTRACTS FOR THEM SAYS JUDITH WATTS THE PROGRAM'S DIRECTOR THE AGENCY ALSO IS CONSIDERING REMOVING ITS ROLE AS THE OFFICIAL PRIME CONTRACTOR FOR 8A COMPANIES AND ESTABLISHING A MENTORING PROGRAM FOR THEM UTILIZING SUCCESSFUL GRADUATES OF THE PROGRAM MEANWHILE A BILL BEFORE CONGRESS WOULD EXPAND 1988 LEGISLATION THAT IS DESIGNED TO SUBJECT 8A COMPANIES TO MORE COMPETITION BEFORE THEY LEAVE THE SETASIDE PROGRAM THE BILL INTRODUCED LAST MONTH BY REP BILL RICHARDSON D NM WOULD KEEP THAT REQUIREMENT BUT IT WOULD ALSO OFFER SOME TRANSITIONAL HELP TO DEPARTING 8A COMPANIES IT ALSO CALLS FOR A STUDY TO SEE WHETHER SOME FIRMS SHOULD BE ALLOWED TO PARTICIPATE IN THE PROGRAM LONGER THAN THE CURRENT NINEYEAR LIMIT SBA ADMINISTRATOR ERSKINE BOWLES HAS MET WITH SEVERAL LAWMAKERS ON THE ISSUE BUT HASN'T TAKEN A POSITION ON THE HOUSE BILL WHICH DOESN'T HAVE A COMPANION VERSION IN THE SENATE SMALL FOOD PRODUCERS WIN A BIG CONCESSION ON LABELING CONGRESS THIS MONTH MODIFIED THE NUTRITION LABELING AND EDUCATION ACT TO GIVE SMALL COMPANIES MORE TIME TO COMPLY AND TO EXEMPT MORE OF THEM ALTOGETHER THE LAW REQUIRES MOST FOOD CONCERNS TO USE LABELS LISTING THE NUTRITIONAL CONTENT OF A PRODUCT'S INGREDIENTS BY NEXT MAY ORIGINALLY IT EXEMPTED ONLY COMPANIES WITH UNDER 500000 IN ANNUAL SALES BUT FEW FOOD CONCERNS ARE IN THAT CATEGORY SO AFTER HEAVY LOBBYING FROM THE RETAIL CONFECTIONERS INTERNATIONAL AND THE NATIONAL ASSOCIATION FOR THE SPECIALTY FOOD TRADE CONGRESS RELAXED THE RULES UNDER THE AMENDED LAW COMPANIES THAT HAVE UNDER 300 WORKERS ARE EXEMPT IN THE FIRST YEAR FROM LABELING PRODUCTS THAT SELL FEWER THAN 600000 UNITS AND IN THE SECOND YEAR FROM LABELING PRODUCTS THAT SELL FEWER THAN 400000 UNITS FIRMS THAT HAVE UNDER 200 WORKERS ARE EXEMPT IN THE FIRST THREE YEARS FROM LABELING PRODUCTS THAT SELL FEWER THAN 200000 UNITS AND COMPANIES THAT HAVE UNDER 100 WORKERS ARE PERMANENTLY EXEMPT FROM LABELING PRODUCTS THAT SELL FEWER THAN 100000 UNITS ANNUALLY IT'S A SOLOMONLIKE SOLUTION SAYS JOHN ROBERTS EXECUTIVE DIRECTOR OF THE NATIONAL ASSOCIATION FOR THE SPECIALTY FOOD TRADE IT SPREADS THE EXPENSE OVER TIME WITHOUT HURTING THE CONSUMER SMALL TALK THE SBA PLANS TO MAKE ITS YOUNG ENTREPRENEUR SEMINARS A NATIONWIDE EVENT THIS OCTOBER PREVIOUSLY ONLY A FEW LOCAL SBA OFFICES SPONSORED THE MEETINGS DECRYING THE FEDERAL GOVERNMENT'S RECENT TAX INCREASE NATIONAL FEDERATION OF INDEPENDENT BUSINESS CHIEF ECONOMIST WILLIAM DUNKELBERG SAYS THE ONLY STIMULUS TO GROSS DOMESTIC PRODUCT MAY BE THE START OF THE MASSIVE REBUILDING OF THE FLOOD PLAIN FORMERLY KNOWN AS THE MIDWEST 9308180139 930818 BUSINESS BRIEF HAL INC PARENT OF HAWAIIAN AIRLINES REACHES ACCORD WITH PILOTS HAL INC PARENT OF HAWAIIAN AIRLINES SAID IT REACHED A TENTATIVE AGREEMENT WITH ITS PILOTS UNION OVER PRODUCTIVITY IMPROVEMENTS THAT TOGETHER WITH SIMILAR AGREEMENTS IT IS SEEKING FROM ITS OTHER EMPLOYEE GROUPS WOULD CUT THE COMPANY'S LABOR COSTS BY AS MUCH AS 10 A YEAR HAL SAID IT REACHED THE AGREEMENT WITH THE AIR LINE PILOTS ASSOCIATION AND ADDED THAT IT IS OPTIMISTIC THAT IT WILL BE ABLE TO REACH SIMILAR PACTS WITH OTHER EMPLOYEE UNIONS IF RATIFIED THE AGREEMENTS WOULD CALL FOR HAL EMPLOYEES TO RECEIVE A YETTOBENEGOTIATED AMOUNT OF HAL STOCK THE COMPANY SAID 9308180138 930818 CORPORATE FOCUS FREEPORTMCMORAN RESOURCE MINES SOME PROBLEMS LOW SULFUR PRODUCTION FROM MAIN PASS AND DROP IN PRICES HURT RESULTS BY ANN DE ROUFFIGNAC STAFF REPORTER OF THE WALL STREET JOURNAL JUST FOUR YEARS AGO A NEW SULFUR FIND BY FREEPORTMCMORAN RESOURCE PARTNERS LP SEEMED GOOD AS GOLD MAYBE BETTER SULFUR PRICES WERE STRONG HOVERING AROUND 142 A TON AND WORLD SUPPLY WAS TIGHTER BECAUSE MANY MINES WERE APPROACHING THE POINT OF PLAYING OUT AT THE TIME NEW ORLEANSBASED FREEPORTMCMORAN RESOURCE APPEARED JUSTIFIED IN A BIT OF HYPERBOLE THE COMPANY CALLED ITS MAIN PASS MINE IN THE GULF OF MEXICO OFF THE LOUISIANA COAST THE BIGGEST AND POTENTIALLY MOST PROFITABLE SULFUR DISCOVERY OF THE CENTURY BUT NOW FREEPORTMCMORAN RESOURCE WHICH MAKES PHOSPHATE FERTILIZER AND MINES SULFUR AND PHOSPHATE USED AS RAW MATERIALS IS REELING AFTER A DOWNWARD SPIRAL IN SULFUR PRICES AND FERTILIZER PRICES THAT BEGAN IN THE SPRING OF 1991 SULFUR PRICES HAVE PLUMMETED 54 TO ABOUT 65 A TON WITH NO RECOVERY IN SIGHT AND PRODUCTION AT MAIN PASS MINE IS BEHIND SCHEDULE THE COMPANY NOW NEEDS MORE SULFUR THAN IT CAN PRODUCE TO MAKE FERTILIZER AND ITS OTHER OFFSHORE SULFUR MINE CAMINADA HAS ONLY TWO OR THREE YEARS OF PRODUCTION LEFT ALL OF THIS HAS DEPRESSED FREEPORTMCMORAN RESOURCE'S EARNINGS AND STOCK PRICE THE COMPANY POSTED A SECONDQUARTER LOSS OF 827 MILLION OR 80 CENTS A SHARE AFTER CHARGES OF 852 MILLION AS REVENUE SLID 175 TO 2017 MILLION THE COMPANY'S UNITS WHICH TRADED AS HIGH AS 29 IN 1989 AFTER THE BIG SULFUR FIND CLOSED YESTERDAY AT 20 UP 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE SULFUR SITUATION IS ALSO HURTING FREEPORTMCMORAN INC WHICH OWNS 513 OF FREEPORTMCMORAN RESOURCE AND MINES COPPER AND GOLD IN 1992 FREEPORTMCMORAN RESOURCE'S CONTRIBUTION TO THE PARENT'S OPERATING PROFIT TUMBLED TO 18 MILLION FROM 789 MILLION ALTHOUGH THE PARENT'S METAL OPERATIONS HAD A 56 GAIN AS NET SURGED TO 1878 MILLION CURRENTLY THE UNIT OWES THE PARENT 170 MILLION IN DIVIDENDS THAT HAVE BEEN DEFERRED FOR THE PAST YEAR WHILE IT CONTINUES TO PAY DIVIDENDS TO OTHER UNITHOLDERS YOU BETTER BELIEVE THE PARENT DEFINITELY MISSES THAT DIVIDEND SAID RENE LATIOLAIS FREEPORTMCMORAN RESOURCE'S CHIEF EXECUTIVE INDEED LAST MONTH STANDARD & POOR'S CORP REVISED ITS RATINGS OUTLOOK FOR FREEPORTMCMORAN INC'S DEBT SECURITIES TO NEGATIVE FROM STABLE S&P CITED IN PART THE POOR PRODUCTION FROM MAIN PASS FREEPORTMCMORAN RESOURCE OWNS 583 OF THE MAIN PASS MINE AND IS THE PROJECT'S OPERATOR THE MINE'S MINORITY OWNERS ARE IMC FERTILIZER GROUP BASED IN NORTHBROOK ILL AND HOMESTAKE MINING CO BASED IN SAN FRANCISCO THE COST OF DEVELOPMENT AND EARLY PRODUCTION OF THE MAIN PASS SULFUR MINE HAS RISEN TO 630 MILLION FROM THE 554 MILLION PROJECTED IN 1990 WHAT'S MORE THE SULFUR MINE WAS SUPPOSED TO REACH FULL OUTPUT OF 5500 TONS A DAY BY THE END OF 1993 ACCORDING TO THE ORIGINAL PLANS BUT FULL OUTPUT HAS BEEN PUSHED BACK TO MID1994 OR EARLY 1995 SOME WALL STREET ANALYSTS ARE GETTING INCREASINGLY ANXIOUS OVER THE DELAY MARC COHEN AN ANALYST AT KIDDER PEABODY & CO SAYS IF THE MINE IS NOT COOKING AT FULL PRODUCTION BY LATE NEXT YEAR THERE IS A SERIOUS PROBLEM CHRIS WILLIS AN ANALYST WITH WERTHEIM SCHRODER & CO IS LESS PATIENT IT WILL BE VERY DISAPPOINTING IF THE MINE IS NOT RUNNING AT FULL TILT BY EARLY NEXT YEAR HE SAYS IF THE PHOSPHATE CHEMICAL MARKET DOESN'T TURN AROUND IN SIX TO NINE MONTHS THEN FREEPORTMCMORAN RESOURCE'S DIVIDEND IS AT RISK HE SAID BUT MR LATIOLAIS SAYS THERE IS NO PROBLEM WITH THE MINE HE SAYS SULFUR PRODUCTION IS BEING DELAYED AT LEAST PARTLY ON PURPOSE BECAUSE THE COMPANY ISN'T EAGER TO GEAR UP IN A GLUTTED MARKET THE WORLD IS SUFFERING FROM AN OVERSUPPLY OF SULFUR HE SAYS INTERNATIONAL SULFUR DEMAND HAS SLUMPED FOLLOWING THE BREAKUP OF THE SOVIET UNION AND THE COLLAPSE OF SOME EASTERN EUROPEAN COUNTRIES CHINA AND INDIA HAVE REDUCED DEMAND FOR SULFUR IN RECENT YEARS TOO BECAUSE OF CONSTRAINTS ON SUBSIDIES TO DOMESTIC FERTILIZER PRODUCERS INTERNATIONALLY DEMAND FOR SULFUR COULD GET WORSE IN THE NEXT SIX MONTHS SAYS GERARD D'AQUIN PRESIDENT OF CONSUL INC A SULFUR CONSULTING FIRM IN TULSA OKLA HE SAYS THE FALLING DOMESTIC DEMAND COULD REDUCE THE US PRICE OF SULFUR AS MUCH AS 15 A TON DOWN TO 50 PERHAPS AS SOON AS MIDOCTOBER BUT FOR NOW INSTEAD OF SULFUR FREEPORTMCMORAN RESOURCE IS EMPHASIZING THE PRODUCTION OF OIL FROM THE MAIN PASS SITE THE SULFUR FORMATION IS UNUSUAL BECAUSE IT COMES WITH A RESERVOIR OF OIL SITTING ON TOP EXPLAINS MR LATIOLAIS WE WANT TO OPTIMIZE CASH FLOW BY EMPHASIZING THE OIL WHICH IS MORE PROFITABLE BUT OIL PRICES ARE LOW TOO THE MOVE TO EXTRACT OIL FROM THE SITE IS ALSO MAKING THE SULFUR MINING PROCESS MORE DIFFICULT ACCORDING TO THE COMPANY AS OIL IS REMOVED FROM THE MAIN PASS RESERVOIR ITS DEPARTURE CREATES TROUBLESOME VOIDS OR SPACES WITHIN THE ROCK FORMATION CONTAINING THE SULFUR TO BRING CRYSTALLIZED SULFUR TO THE SURFACE IT MUST FIRST BE MELTED IN A COSTLY PROCEDURE USING INJECTED HOT WATER THE SULFUR IS THEN FORCED TO THE SURFACE BY AIR PRESSURE AT MAIN PASS PRODUCING THE OIL OUT OF THE TOP OF THE SULFURANDOILBEARING FORMATION MEANS THAT MORE HOT WATER MUST BE INJECTED TO FILL THE RESULTING VOIDS IN SURROUNDING LIMESTONE FORMATIONS THE RESULTING EMPTY SPACE AROUND THE SULFUR MAKES IT HARDER TO HEAT AND MOVE FREEPORTMCMORAN RESOURCE APPARENTLY DIDN'T ANTICIPATE THE SULFURPRODUCTION PROBLEM CAUSED BY PUMPING OIL COMPANY OFFICIALS WERE INITIALLY OPTIMISTIC THAT THE OIL AND SULFUR OPERATIONS WOULD COMPLEMENT EACH OTHER THEY THOUGHT THE OIL ON TOP WOULD ACT LIKE A NATURAL BLANKET OF INSULATION REDUCING THE AMOUNT OF HOT WATER TO BE INJECTED TO GET THE SULFUR OUT BUT THE SULFUR MINING PROCESS CAN BE UNPREDICTABLE SAYS JOYCE OBER AN ADVISER AT THE US BUREAU OF MINES MINES ARE LIKE CHILDREN EACH ONE IS UNIQUE AND REACTS DIFFERENTLY MS OBER SAYS PRODUCING SULFUR AT MAIN PASS CURRENTLY REQUIRES 9000 GALLONS OF HOT WATER PER TON OF SULFUR DURING THESE INITIAL STAGES OF PRODUCTION FREEPORTMCMORAN RESOURCE SAYS BRYAN WIMBERLEY MANAGER OF SULFUR EXPLORATION AT TEXASGULF INC A COMPETITOR IN THE SULFUR MARKET AND A UNIT OF ELF AQUITANE SAYS SUCCESSFUL MINES TYPICALLY USE 6000 GALLONS PER TON OR LESS TO HEAT THE SULFUR DURING STARTUP WHICH TAKES ABOUT TWO YEARS SOME SUCCESSFUL MINES HAVE AVERAGED AS LITTLE AS 2000 TO 3000 GALLONS PER TON DURING STARTUP ONCE THE MINE REACHES FULL PRODUCTION A COMPETITIVE MINE SHOULD YIELD ROUGHLY ONE TON OF SULFUR PER 2000 GALLONS OF HOT WATER INDUSTRY OFFICIALS SAY FOR 1992 THE MAIN PASS MINE PRODUCED ABOUT 228000 TONS OF SULFUR AFTER INJECTING AN AVERAGE OF 10 MILLION GALLONS A DAY OF WATER IF I WERE MANAGER OF THAT MINE I WOULD BE VERY WORRIED ABOUT THE COST AS WELL AS THE REASON WHY SO MUCH HOT WATER IS BEING USED AT MAIN PASS SAYS MR WIMBERLEY OF TEXASGULF BUT FREEPORTMCMORAN RESOURCE'S MR LATIOLAIS SAYS HE'S LOOKING FORWARD TO BETTER LONGTERM RESULTS AT MAIN PASS HE SAYS THERE'S LOTS OF SULFUR THERE AND PRICES WILL REBOUND EVENTUALLY 9308180137 930818 ECONOMY ECONOMY IS ALREADY FEELING THE IMPACT OF FEDERAL GOVERNMENT'S SPENDING CUTS BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SKEPTICAL ABOUT THE FEDERAL GOVERNMENT'S PLEDGE TO TIGHTEN ITS BELT CONSIDER THIS IT ALREADY HAS AND THAT'S ONE REASON THE ECONOMY IS SO SLUGGISH FEDERAL PURCHASES OF GOODS AND SERVICES DROPPED 33 IN 1992 THE FIRST DECLINE IN THREE YEARS AND THE LARGEST IN ALMOST 20 BEHIND THE DECLINE WERE HUGE DEFENSE CUTBACKS THESE PURCHASES TUMBLED MORE THAN 60 DURING THE YEAR BUT NONDEFENSE PURCHASES ARE SHOWING SIGNS OF SHRINKING TOO FOR TWO YEARS IN A ROW THEIR RATE OF INCREASE HAS SLOWED AND IN THE SECOND QUARTER OF THIS YEAR THEY ACTUALLY FELL 18 MANY ANALYSTS VIEW THIS AS THE START OF A TREND BECAUSE OF CUTS IN FEDERAL EMPLOYMENT AND CAPS ON NONDEFENSE DISCRETIONARY SPENDING THE ECONOMY HAS FELT THE PINCH KURT KARL OF THE WEFA GROUP ECONOMIC CONSULTANTS BASED IN SUBURBAN PHILADELPHIA ESTIMATES THAT CUTS IN PURCHASES BY THE FEDERAL GOVERNMENT KNOCKED AS MUCH AS 05 PERCENTAGE POINT OFF THE GROSS DOMESTIC PRODUCT LAST YEAR COSTING ROUGHLY 400000 JOBS AND WILL PROBABLY DO THE SAME IN 1993 GOVERNMENT CUTS IN DEFENSE SPENDING HAVE DEFINITELY BEEN A DRAG ON THE ECONOMY SAYS JIM O'SULLIVAN ECONOMIST WITH MORGAN GUARANTY IN NEW YORK THERE ARE TWO WAYS TO MEASURE GOVERNMENT SPENDING ONE IS SIMPLY TO COUNT THE MONEY THAT LEAVES THE TREASURY FOR ANYTHING FROM SOCIAL SECURITY PAYMENTS TO BUYING PAPER CLIPS FOR GOVERNMENT OFFICES THIS MEASURE IS IMPORTANT IN PART BECAUSE IT DETERMINES HOW MUCH THE GOVERNMENT MUST COLLECT IN TAXES OR BORROW ON FINANCIAL MARKETS BUT ECONOMISTS SAY THE BEST WAY TO MEASURE GOVERNMENT'S IMPACT ON THE ECONOMY IS BY WHAT IT PAYS FOR GOODS AND SERVICES AND NOT THE CHECKS THE GOVERNMENT CUTS FOR PAYROLLS SOCIAL SECURITY AND THE LIKE WHICH SIMPLY REPRESENT TRANSFERS FROM ONE GROUP OF CITIZENS TO ANOTHER THE GOODS AND SERVICES THE GOVERNMENT BUYS HAVE A MULTIPLIER EFFECT BECAUSE THEY DIRECTLY CONTRIBUTE TO PRODUCTION AND HIRING IT IS BY THIS MEASURE THAT FEDERAL SPENDING DECLINED IN 1992 AND MOREOVER FELL 30 IN THE SECOND QUARTER AND TUMBLED 179 IN THE FIRST QUARTER OF THIS YEAR FEDERAL GOVERNMENT PURCHASES MAKE UP ABOUT 70 OF ALL ECONOMIC ACTIVITY IN THE US TO BE SURE GOVERNMENT SPENDING CUTS ARE HARDLY THE ONLY CULPRIT IN THE SLUGGISH RECOVERY THAT HAS GRIPPED THE NATION FOR MORE THAN TWO YEARS THE COMMERCIAL REALESTATE SECTOR IS STILL COMING BACK FROM OVERBUILDING AND HIGH VACANCY RATES THE HOUSING SECTOR IS ERRATIC US EXPORTERS ARE HAVING TROUBLE SELLING GOODS TO STRUGGLING ECONOMIES OVERSEAS FACTORIES ARE STILL CUTTING WORKERS FROM THEIR PAYROLLS BUT THE DECLINE IN GOVERNMENT SPENDING LAST YEAR HAS HAD ITS OWN SPECIAL TOLL THIS HAS HAD AN IMMENSE IMPACT IN AREAS WHERE MILITARY BASES HAVE BEEN CLOSED OR REDUCED AND WHERE DEFENSE CONTRACTORS HAVE HAD TO LAY PEOPLE OFF SAYS LEONARD SANTOW MANAGING DIRECTOR OF GRIGGS & SANTOW INC AN ECONOMIC CONSULTING FIRM IN NEW YORK THE IMPACT IS MUCH GREATER THAN THE GROSS DOMESTIC PRODUCT NUMBERS SUGGEST CALIFORNIA IS PERHAPS THE BEST EXAMPLE OF HOW DEFENSE CUTBACKS WHICH HAVE DIRECTLY AFFECTED ONLY CERTAIN REGIONS OF THE COUNTRY HAVE THE ABILITY TO WEIGH DOWN ECONOMIC PERFORMANCE OF THE ENTIRE US CALIFORNIA REPRESENTS ABOUT 14 OF US ECONOMIC ACTIVITY AND ANALYSTS ESTIMATE THAT THE STATE'S ECONOMIC WOES ARE KNOCKING ROUGHLY ONE QUARTER OF A PERCENTAGE POINT OFF GROSS DOMESTIC PRODUCT EACH QUARTER HISTORICALLY US DEFENSE CUTBACKS HAVE TAKEN PLACE ONLY AFTER MAJOR WARS IN 1973 JUST AFTER US TROOPS WERE WITHDRAWN FROM VIETNAM THERE WAS A 67 DROP IN GOVERNMENT PURCHASES WITH AN 88 PLUNGE IN DEFENSE SPENDING THE ECONOMY STILL GREW AT AN IMPRESSIVE 52 RATE IN 1973 MAINLY BECAUSE CONSUMPTION NONRESIDENTIAL FIXED INVESTMENT AND EXPORTS WERE VERY STRONG IN 1992 THE ECONOMY DIDN'T HAVE THAT MANY OTHER THINGS GOING FOR IT OF COURSE THERE IS AN UPSIDE TO REDUCTIONS AND SLOWDOWNS IN FEDERAL PURCHASES TO THE EXTENT THAT THERE WAS A LOT OF WASTE IN THE GOVERNMENT SECTOR THE SPENDING CUTS COULD MAKE THE GOVERNMENT AND INDUSTRIES AFFECTED BY IT MORE EFFICIENT AND AS LONG AS CUTS AREN'T MET BY INCREASED SPENDING IN OTHER AREAS WE WILL SEE LOWER BUDGETDEFICITS AND INTEREST RATES SAYS SAMUEL KAHAN CHIEF ECONOMIST OF FUJI SECURITIES IN CHICAGO 9308180136 930818 CEPHALON TO TEST DRUG IN US WESTCHESTER PA CEPHALON INC SAID IT WILL START US TESTING OF A DRUG FOR THE TREATMENT OF NARCOLEPSY THAT IT HOPES TO MARKET IN THE US BY THE END OF 1994 THE PRODUCT MODAFINIL IS LICENSED FROM ITS PARIS DEVELOPER LABORATOIRE L LAFON HAS BEEN APPROVED IN FRANCE AND WILL BE MARKETED THERE AFTER PRICING APPROVAL A CEPHALON SPOKESMAN SAID CEPHALON WHICH DEVELOPS AND COMMERCIALIZES PRODUCTS FOR THE TREATMENT OF STROKE AND NEURODEGENERATIVE DISORDERS HAS OBTAINED THE RIGHT TO MARKET THE PRODUCT IN THE UK AND IRELAND PENDING APPROVAL IN THOSE COUNTRIESEND 9308180135 930818 GE UNIT GETS CONTRACT FAIRFIELD CONN GE AIRCRAFT ENGINES A UNIT OF GENERAL ELECTRIC CO SAID IT RECEIVED A 45 MILLION ORDER TO SUPPLY JET ENGINES TO SKYWEST AIRLINES ST GEORGE UTAH 9308180134 930818 HONG KONG TOURISM RECEIPTS HONG KONG HONG KONG TOURISM RECEIPTS JUMPED 89 IN THE FIRST HALF TO 2553 BILLION HONG KONG DOLLARS US329 BILLION ACCORDING TO THE GOVERNMENTFUNDED HONG KONG TOURIST ASSOCIATION THE ASSOCIATION SAID THE RISE FROM HK2343 BILLION A YEAR AGO CAME MOSTLY ON INCREASED SPENDING BY VISITORS FROM SOUTHEAST ASIA TAIWAN AND NORTH AMERICA 9308180133 930818 WELLA AG POSTS GAINS DARMSTADT GERMANY WELLA AG A GERMAN PRODUCER OF PERSONALCARE PRODUCTS REPORTED A 3 RISE IN SIXMONTH PRETAX PROFIT OUTSTRIPPING A 14 GAIN IN SALES WELLA PREDICTED A FULLYEAR SALES GAIN OF BETWEEN 4 AND 6 INCLUDING SALES FROM HAIR CARE PRODUCTS ACQUIRED IN JUNE FROM SMITHKLINE BEECHAM PLC GROUP PRETAX PROFIT ROSE TO 66 MILLION MARKS 392 MILLION FROM 641 MILLION MARKS IN THE FIRST SIX MONTHS OF 1992 GROUP SALES REACHED 1329 BILLION MARKS UP FROM 1311 BILLION HAD THERE NOT BEEN DEVALUATIONS WITHIN EUROPE'S EXCHANGE RATE MECHANISM SALES WOULD HAVE INCREASED 34 WELLA SAID THE WEAK WORLD ECONOMY ALSO CONTRIBUTED TO THE SLOW INCREASE IN WORLDWIDE SALES WELLA SAID BUT IT ADDED THAT IT HAS SUCCEEDED IN INCREASING MARKET SHARE IN IMPORTANT MARKETS 9308180132 930818 PEPPERAND SALT NEWFANGLED LIBRARY HAVE ME IN A FOG AND A CARD CATALOGUE TRICKS OF THE TRADE ARE MAKING THE JAPANESE TALLER WILL MAKE THE AMERICANS SMALLER MUCH OF THE EARTH IS COVERED WITH WATER ALTHOUGH LITTER IS FAST CATCHING UP 9308180131 930818 FUTURE COMMUNICATIONS INC DALLAS FUTURE COMMUNICATIONS INC SAID IT COMPLETED A 125 MILLION PRIVATE PLACEMENT AND USED THE PROCEEDS TO ACQUIRE TWO COLLECTIONS OF MORE THAN 700 FILMS FROM CINATEL FILMS INC AND THE ROHAUER COLLECTION TERMS WEREN'T DISCLOSED CINATEL FILMS PRODUCES AND DISTRIBUTES FEATURE FILMS THE ROHAUER COLLECTION WAS ASSEMBLED BY THE LATE FILM ARCHIVIST RAYMOND ROHAUER 9308180130 930818 WHO'S NEWS CARDINAL DISTRIBUTION INC CARDINAL DISTRIBUTION INC DUBLIN OHIO JOHN C KANE 53 YEARS OLD WAS ELECTED A DIRECTOR OF THIS WHOLESALE DISTRIBUTOR OF DRUGS AND RELATED HEALTH PRODUCTS MR KANE IS CARDINAL'S PRESIDENT AND CHIEF OPERATING OFFICER HE SUCCEEDS JEFFREY WILKINS 48 WHO DIDN'T STAND FOR REELECTION MR WILKINS IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF METATEC/DISCOVERY SYSTEMS INC 9308180129 930818 WHO'S NEWS CHECKPOINT SYSTEMS INC CHECKPOINT SYSTEMS INC THOROFARE NJ KEVIN P DOWD 45 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS SECURITY SYSTEMS CONCERN HE SUCCEEDS AE WOLF 63 WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR DOWD HAD BEEN EXECUTIVE VICE PRESIDENT OF CHECKPOINT 9308180128 930818 WHO'S NEWS JM SMUCKER CO JM SMUCKER CO ORRVILLE OHIO BARBARA TRUEMAN 53 YEARS OLD CHAIRMAN AND MAJORITY OWNER OF CLOSELY HELD RED ROOF INNS INC OF HILLIARD OHIO WAS ELECTED A DIRECTOR OF THIS MAKER OF PRESERVES JELLIES AND RELATED FOOD PRODUCTS MRS TRUEMAN FILLS A VACANCY ON THE BOARD CREATED BY THE RETIREMENT OF CLAUDE BLAIR EARLIER THIS YEAR 9308180127 930818 WHO'S NEWS SAVOY PICTURES INC SAVOY PICTURES INC NEW YORK ALAN FELS 42 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND CONTROLLER OF THIS COMPANY WHICH FINANCES MARKETS AND DISTRIBUTES MOVIES IN THE US AND CANADA THE POSITION IS NEW MR FELS WAS PREVIOUSLY VICE PRESIDENT AND CONTROLLER AT PARAMOUNT PICTURES TELEVISION GROUP A DIVISION OF PARAMOUNT COMMUNICATIONS INC 9308180126 930818 ARCO ENTERS PACT WITH HUANENG LOS ANGELES ATLANTIC RICHFIELD CO THE DIVERSIFIED OIL GAS AND MINERALS COMPANY SAID IT ENTERED INTO AN AGREEMENT FOR COOPERATION AND EXCHANGE OF INFORMATION WITH HUANENG COAL CORP CHINA THAT COULD EVENTUALLY LEAD TO JOINTLY DEVELOPING COAL MINING PROJECTS IN SHENFU DONGSHENG AND OTHER CHINESE MINING AREAS UNDER THE AUG 6 AGREEMENT A NEW UNIT OF ARCO ARCO COAL CHINA INC WAS CREATED TO PROVIDE HUANENG WITH CONSULTING SERVICES ON COAL MINING DEVELOPMENT IN TURN HUANENG WILL PROVIDE ARCO COAL WITH DATA AND PREFERENCE IN DEVELOPING VARIOUS JOINT INVESTMENT OPPORTUNITIES RELATING TO HUANENG'S MINING AREAS IN CHINA 9308180125 930818 HEWLETT POSTS 44 RISE IN NET FOR 3RD QUARTER RESULT TRAILED EXPECTATIONS AS ORDERS GAIN SLOWED IN SOME OVERSEAS AREAS BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL HEWLETTPACKARD CO REPORTED 44 HIGHER NET INCOME FOR ITS FISCAL THIRD QUARTER BUT ORDERS GROWTH IN SOME BIG OVERSEAS MARKETS SLOWED SHARPLY AND EARNINGS DIDN'T MEET WALL STREET EXPECTATIONS ADDING TO INVESTORS' DISAPPOINTMENT OVER THE EARNINGS HEWLETTPACKARD REPORTED A SHARP RISE IN INVENTORIES AND AN INCREASE IN SELLING COSTS AND THE RESULTS WHILE STRONG BY CURRENT COMPUTERINDUSTRY STANDARDS WERE IN CONTRAST TO THE UNEXPECTEDLY STRONG PROFIT AND REVENUE GROWTH THE COMPANY HAD POSTED IN THE FISCAL SECOND PERIOD THE PALO ALTO CALIF COMPUTER CONCERN POSTED NET INCOME OF 271 MILLION OR 106 A SHARE IN THE QUARTER ENDED JULY 31 COMPARED WITH 188 MILLION OR 75 CENTS A SHARE THE YEAR EARLIER PERSHARE EARNINGS WERE 12 LOWER THAN SECURITIES ANALYSTS' MEAN ESTIMATES ACCORDING ZACKS INVESTMENT RESEARCH INC HP HAS COME OFF A RUN OF A COUPLE OF VERY STRONG QUARTERS SAID ANALYST STEVEN MILUNOVICH OF MORGAN STANLEY THE COMPANY HAS BEEN OUTPERFORMING THE INDUSTRY BUT THIS IS A STEP DOWN FROM WHAT THEY WERE DOING HE ADDED STILL INVESTORS APPARENTLY TOOK THE EARNINGS DISAPPOINTMENT IN STRIDE YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE HEWLETTPACKARD COMMON SKIDDED EARLY ON BUT THEN RECOVERED TO CLOSE AT 74 OFF ONLY 125 VOLUME OF ABOUT 29 MILLION SHARES COMPARED WITH AVERAGE DAILY VOLUME OF 910449 SHARES HEWLETTPACKARD REPORTED WHAT IT CHARACTERIZED AS STRONG GROWTH IN ORDERS AND REVENUE IN ITS COMPUTER BUSINESS WHICH INCLUDES ITS BOOMING PRINTER BUSINESS AND GOOD GROWTH IN MOST OTHER PRODUCT AREAS THIRDQUARTER REVENUE ROSE 23 TO 496 BILLION FROM 404 BILLION A YEAR BEFORE THE RESULTS ARE A DECENT OUTCOME IN A DIFFICULT ECONOMIC ENVIRONMENT SAID LEWIS PLATT THE COMPANY'S CHIEF EXECUTIVE OFFICER BUT ORDERS WHICH GIVE A MORE CURRENT VIEW INTO THE COMPANY'S BUSINESS GREW ONLY 19 IN THE QUARTER TO 47 BILLION AGAIN STRONG BY INDUSTRY STANDARDS BUT WELL SHORT OF THE 28 GROWTH REPRESENTED BY THE 54 BILLION IN ORDERS THAT HEWLETTPACKARD POSTED IN ITS SECOND QUARTER MR PLATT HAD SAID IN JUNE THAT THE COMPANY'S THIRD QUARTER MIGHT NOT MATCH THE SECOND PERIOD'S ORDER GROWTH STILL HE SAID YESTERDAY WE ARE A BIT DISAPPOINTED BY HOW MUCH IT MODERATED THIS QUARTER ORDERS GROWTH EASED MOST SHARPLY IN EUROPE WHERE THE COMPANY POSTED A 10 RISE FROM THE YEARAGO QUARTER COMPARED WITH 28 GROWTH IN THE SECOND QUARTER SALES AND ORDERS THERE WERE HURT PARTICULARLY BY THE ECONOMY'S DISMAL CLIMATE IN GERMANY THE COMPANY'S BIGGEST FOREIGN MARKET AND ITALY MR PLATT SAID US ORDERS THOUGH GREW A HEALTHY 24 FROM THE YEARAGO QUARTER AND ORDERS FROM THE ASIAPACIFIC AREA GREW 17 HE ADDED REFLECTING A CONTINUED SHIFT IN HEWLETTPACKARD'S REVENUE AWAY FROM LOWVOLUME COMPUTER MARKETS TOWARD HIGHVOLUME MARKETS SUCH AS INKJET PRINTERS FOR PERSONAL COMPUTERS WHERE PRICE WARS ARE CUTTING PROFIT MARGINS THE COMPANY'S COST OF GOODS SOLD ROSE TO ALMOST 60 OF REVENUE FROM ABOUT 57 A YEAR EARLIER BUT RISING SALES COSTS WERE MORE THAN OFFSET BY A REDUCTION IN OPERATING EXPENSES AS A PERCENT OF REVENUE WHICH FELL TO 316 FROM 355 IN THE YEARAGO QUARTER AS A RESULT THE COMPANY'S OPERATINGPROFIT MARGIN IN THE THIRD QUARTER ROSE TO 86 FROM 74 A YEAR AGO AMONG OTHER CONCERNS MR PLATT CITED A RISE IN INVENTORY AT THE END OF THE QUARTER TO 345 BILLION FROM 246 BILLION THE YEAR EARLIER AND 302 BILLION IN THE IMMEDIATELY PRIOR QUARTER THE SHARP RISE STEMMED FROM FACTORS SUCH AS THE COMPANY'S STOCKPILING OF PARTS FOR HIGHDEMAND PRODUCTS SUCH AS PRINTERS AND ITS INCREASED USE OF PRODUCT SHIPMENTS BY GROUND INSTEAD OF AIR THE COMPANY WANTS TO REDUCE INVENTORY BY SEVERAL HUNDRED MILLION DOLLARS MR PLATT SAID ANALYSTS SAID HEWLETTPACKARD IS EXPECTED TO CONTINUE TO POST SOLID EARNINGS GROWTH IF AT A SLOWER PACE THAN EARLIER THIS YEAR FOR INVESTORS MANY OTHER COMPUTER COMPANIES ARE ABSOLUTE NAIL BITERS HEWLETT IS ONLY A MODERATE NAIL BITER SAID ANALYST LAURA CONIGLIARO OF PRUDENTIAL SECURITIES SHE EXPECTS THE COMPANY TO POST FOURTHQUARTER EARNINGS OF ABOUT 125 A SHARE AGAINST THE 28 CENTS A SHARE POSTED A YEAR EARLIER AFTER A LARGE RESTRUCTURING CHARGE HEWLETTPACKARD HAS ONLY A MODERATE SET OF CAUTIONARY THINGS THAT HAVE TO BE WATCHED SHE ADDED 9308180124 930818 BUSINESS BRIEF MICHAELS STORES INC CONCERN'S PROFIT ROSE 38 IN THE FISCAL SECOND QUARTER MICHAELS STORES INC SAID EARNINGS ROSE 38 ON HIGHER SALES IN THE SECOND QUARTER ENDED AUG 1 THE IRVING TEXAS ARTS AND CRAFTS RETAILER POSTED NET INCOME OF 36 MILLION OR 21 CENTS A SHARE UP FROM 26 MILLION OR 16 CENTS A SHARE A YEAR AGO ON SLIGHTLY FEWER SHARES OUTSTANDING SALES GREW 24 TO 1154 MILLION FROM 934 MILLION THE RESULTS EXCEEDED ANALYSTS' MEAN ESTIMATE OF 19 CENTS A SHARE R DON MORRIS THE COMPANY'S CHIEF FINANCIAL OFFICER ATTRIBUTED THE IMPROVED RESULTS TO A 5 IMPROVEMENT IN COMPARABLESTORE SALES THE ADDITION OF 50 STORES IN THE PAST YEAR AND MORE ADVERTISING EARNINGS ALSO BENEFITED FROM AN IMPROVEMENT IN GROSS MARGINS IN THE QUARTER TO 358 FROM 345 FIRSTHALF NET ROSE 31 TO 74 MILLION OR 43 CENTS A SHARE FROM 57 MILLION OR 34 CENTS A SHARE A YEAR EARLIER IN LATE OVERTHECOUNTER TRADING YESTERDAY MICHAELS WAS QUOTED AT 29875 A SHARE UP 2 9308180123 930818 CSA'S CHIEF MCEWEN PROPOSES UNITS' MERGER TO SIMPLIFY STRUCTURE TORONTO CANADIAN MINING EXECUTIVE ROBERT MCEWEN PROPOSED A MERGER OF TWO COMPANIES IN HIS SPRAWLING HOLDINGS AIMED AT CLEANING UP WHAT HAS BEEN VIEWED AS AN UNNECESSARILY COMPLEX CORPORATE STRUCTURE MR MCEWEN IS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF THREE COMPANIES INVOLVED CSA MANAGEMENT LTD A HOLDING COMPANY THAT CONTROLS GOLDCORP INC AN INVESTMENT VEHICLE THAT IN TURN CONTROLS DICKENSON MINES LTD A TORONTO GOLD PRODUCER MR MCEWEN OWNS 51 OF THE VOTING STOCK OF CSA CSA PROPOSED SHARE SWAPS TO MERGE DICKENSON AND GOLDCORP IN AN ATTEMPT TO SIMPLIFY THE STRUCTURE OF THE MINING GROUP AND INCREASE MARKET LIQUIDITY SAID ROLANDO FRANCISCO CHIEF FINANCIAL OFFICER OF ALL THREE COMPANIES BESIDES IMPROVING THE LIQUIDITY OF DICKENSON'S THINLY TRADED STOCK THE MERGER COULD BOOST THE MARKET VALUE OF THE GROUP'S ASSETS BY REMOVING PART OF THE MCEWEN FACTOR SAID BARRY ALLAN A GOLD ANALYST WITH DEACON BARCLAYS DE ZOETE WEDD LTD IN TORONTO MR MCEWEN'S TENDENCY TO SET UP COMPLEX CORPORATE STRUCTURES HAS DRAWN SKEPTICISM FROM INVESTORS AND DEPRESSES THE MARKET VALUE OF THE COMPANIES MR ALLAN SAID UNDER THE PROPOSED MERGER WHICH REQUIRES SHAREHOLDER AND REGULATORY APPROVAL CSA'S VOTING STAKE IN THE AMALGAMATED COMPANY WOULD BE 34 BUT UNDER THE PLAN CSA WOULD BE ISSUED A WARRANT WHICH IF EXERCISED WOULD BUMP ITS VOTING STAKE TO A CONTROL POSITION THAT IS MR MCEWEN'S ACE IN THE HOLE SHOULD HE DECIDE TO REGAIN VOTING CONTROL OF THE COMPANY MR ALLAN SAID IN TRADING YESTERDAY ON THE TORONTO STOCK EXCHANGE GOLDCORP SHARES CLOSED AT 7625 CANADIAN DOLLARS US580 UP 625 CANADIAN CENTS AND DICKENSON CLASS A SHARES CLOSED AT C650 DOWN 75 CANADIAN CENTS 9308180122 930818 TECHNOLOGY SOFTKEY WILL ACQUIRE SPINNAKER WORDSTAR IN A 3WAY STOCK SWAP BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL CAMBRIDGE MASS IN A NEW SIGN OF CONSOLIDATION IN THE SOFTWARE INDUSTRY SOFTKEY SOFTWARE PRODUCTS INC WILL ACQUIRE SPINNAKER SOFTWARE CORP AND WORDSTAR INTERNATIONAL INC TO CREATE A CONSUMER SOFTWARE COMPANY WITH ESTIMATED SALES THIS YEAR OF 130 MILLION THE COMPLEX THREEWAY STOCKSWAP AGREEMENT VALUES THE COMBINED COMPANIES AT ABOUT 244 MILLION SOFTKEY SAID THE NEW COMPANY WILL FOCUS ON CONSUMER AND HOMEOFFICE SOFTWARE LARGELY SOLD THROUGH MASSMARKET RETAIL DISTRIBUTORS SUCH AS RADIO SHACK AND WALMART THE INDUSTRY IS FAST CONSOLIDATING SAID PAUL JOHNSON AN ANALYST AT FIRST BOSTON CORP WITHOUT CRITICAL MASS BOTH IN PRODUCT BREADTH AND DISTRIBUTION IT'S GOING TO BE VERY DIFFICULT FOR MOST OF THESE SMALLER COMPANIES TO SURVIVE OTHER ANALYSTS SAID THAT SPINNAKER AND SOFTKEY WHICH HAD STAKED OUT THE LOWEND CONSUMER MARKET HAD BEEN HURT BY SHARP PRICE CUTS BY INDUSTRY GIANTS LIKE MICROSOFT CORP AND LOTUS DEVELOPMENT CORP THESE COMPANIES HAVE BEEN UNDER EXTREME COMPETITIVE PRESSURE SAID DARREN MARTIN AN ANALYST WITH MCLEAN MCCARTHY INC IN TORONTO TOGETHER THEY'LL BE A MUCH STRONGER COMPANY THE COMPANIES WARNED OF SUBSTANTIAL REDUCTIONS OF EMPLOYEES AND FACILITIES AFTER THE MERGER TO CUT OPERATING COSTS INSIDERS SAID AS MUCH AS ONEFIFTH OF THE COMPANIES' TOTAL WORK FORCE COULD BE DISMISSED FACILITIES IN NOVATO CALIF WHERE WORDSTAR IS BASED AND IN BOCA RATON FLA WHERE SOFTKEY HAS SOME OPERATIONS MAY BE CLOSED FOLLOWING THE EXCHANGE OF SHARES SOFTKEY HOLDERS WILL OWN 53 OF THE COMBINED COMPANIES SPINNAKER HOLDERS WILL HOLD 31 AND WORDSTAR INVESTORS WILL OWN 16 SOFTKEY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER MICHAEL PERIK WILL BECOME CHIEF EXECUTIVE SOFTKEY'S PRESIDENT KEVIN O'LEARY WILL BECOME CHAIRMAN THE COMPANY WILL BE CALLED SOFTKEY BUT MOST COMPANY OPERATIONS WILL MOVE FROM TORONTO SOFTKEY'S HEADQUARTERS TO CAMBRIDGE WHERE SPINNAKER IS BASED SPINNAKER HAS BUILT A STRONG TEAM OF PEOPLE AND WE'VE DECIDED THAT'S WHAT WE WANT TO BUILD THE NEW COMPANY AROUND MR PERIK SAID DAVID SEUSS SPINNAKER'S CHIEF EXECUTIVE WILL BE PRESIDENT OF THE COMBINED COMPANIES' CONSUMER PRODUCTS DIVISION THE LARGEST UNIT WORDSTAR CHAIRMAN RON POSNER AND ITS PRESIDENT YOAV STERN WILL JOIN THE NEW BOARD WORDSTAR A SOFTWARE PIONEER AND BRIEFLY THE INDUSTRY'S LARGEST COMPANY WITH 1984 SALES OF 67 MILLION LONG AGO LOST ITS DOMINANCE OF THE HUGE WORDPROCESSING SOFTWARE MARKET TO WORDPERFECT CORP OF OREM UTAH WORDSTAR REPORTED SALES OF ONLY 343 MILLION FOR THE LATEST FOUR QUARTERS ENDED MARCH 31 WORDSTAR AND SOFTKEY HAD ANNOUNCED A PRELIMINARY AGREEMENT TO MERGE ON MAY 13 SEPARATELY SPINNAKER HAD JUST ACQUIRED POWER UP SOFTWARE A 34 MILLION CONSUMERSOFTWARE PUBLISHER THAT ALSO OPERATED ONE OF THE INDUSTRY'S LARGEST CATALOGSALES BUSINESSES IN A SENSE THIS IS A FOURWAY MERGER BECAUSE OF THE POWER UP ACQUISITION SAID JEFFREY TARTER EDITOR OF SOFTLETTER AN INDUSTRY MONTHLY HE ALSO SAID THE COMPANIES EMBRACE A DIFFERENT MODEL THAN MAINSTREAM SOFTWARE MAKERS DO WITH MASSMERCHANT STYLE MARKETING AND PRODUCT DESIGN AND UNIT PRICES MOSTLY UNDER 50 THE SOFTWARE MARKET IS INCREASINGLY A CONSUMER BUSINESS NOT A TECHNOLOGY BUSINESS WHERE MARKETING BRAND AWARENESS AND MASS DISTRIBUTION BECOME KEY ELEMENTS SAID SPINNAKER'S MR SEUSS ITS PRODUCTS INCLUDE THE PFS HOMEOFFICE SOFTWARE SERIES WHICH HAS BEEN PROFITABLE AND A LINE OF SOFTWARE TOOLS WHICH LOST MONEY AND HAS BEEN DISCONTINUED SOFTKEY'S PRODUCTS WHOSE PRICES RANGE FROM 595 TO 4995 INCLUDE SEVERAL INCOME TAXPREPARATION PACKAGES THE TRANSACTION WHICH IS SUBJECT TO REGULATORY AND SHAREHOLDER APPROVALS IS EXPECTED TO BE ACCOUNTED FOR AS A POOLING OF INTERESTS FOR TAX PURPOSES AND IS PLANNED FOR COMPLETION IN NOVEMBER HARVARD MANAGEMENT THE UNIVERSITY'S INVESTMENT AFFILIATE HOLDS 45 OF SPINNAKER SHARES AND HAS AGREED TO VOTE IN FAVOR OF THE TRANSACTION THE MERGER WILL BE ACCOMPLISHED THROUGH THE USE OF WORDSTAR SHARES THAT WILL BE SUBJECT TO A REVERSE SPLIT FOLLOWING THE TRANSACTION THE PLAN VALUES SPINNAKER AT ABOUT 76 MILLION EXCLUSIVE OF ABOUT 5 MILLION OF DEBT TO BE ASSUMED BY THE NEW COMPANY WORDSTAR IS VALUED AT ABOUT 39 MILLION AND SOFTKEY AT 129 MILLION EXECUTIVES SAID 9308180121 930818 ARAB NIGHTMARE SUDAN'S LINKS TO IRAN CAUSE GROWING WORRY OVER ISLAMIC TERRORISM US IS ADDING AFRICAN NATION TO LIST OF OUTLAW STATES MIDEAST STABILITY AT RISK TIES TO NEW YORK PLOTS CITED BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS SHOWING INCREASING CONCERN ABOUT THE GROWING INTERNATIONALIZATION OF RADICAL ISLAMIC ACTIVITIES UNDERSCORING ITS APPREHENSION IT IS SET TODAY TO ADD SUDAN TO ITS ROSTER OF OUTLAW STATES THAT SUPPORT SOME OF THE WORLD'S MOST DANGEROUS TERRORIST GROUPS THE US SAYS SUDAN'S ISLAMIC GOVERNMENT HAS TURNED THE COUNTRY INTO A HAVEN AND TRAINING FACILITY FOR A NUMBER OF RADICAL ORGANIZATIONS INCLUDING SOME VIOLENT PALESTINIAN OUTFITS US OFFICIALS ALSO SAY SUDAN IN LEAGUE WITH IRAN PLAYS HOST TO OTHER ISLAMIC FUNDAMENTALISTS WHO ARE BENT ON DESTABILIZING GOVERNMENTS IN NORTH AFRICA AND THE MIDEAST AND WHOSE TENTACLES REACH TO AMERICA'S SHORES AN INVESTIGATION OF SUDAN'S SUPPORT OF TERRORISM WAS ORDERED LAST DECEMBER BY FORMER SECRETARY OF STATE LAWRENCE EAGLEBURGER BUT THE EVENT THAT SET SUDAN ON THE PATH TO THE US TERRORIST LIST OCCURRED A YEAR EARLIER IN DECEMBER 1991 WHEN IRANIAN PRESIDENT ALI AKBAR HASHEMIRAFSANJANI VISITED KHARTOUM HIS ENTOURAGE INCLUDED SOME OF TEHRAN'S MOST FEARED EXTREMISTS MAJ GEN MOHSEN REZAI WHO COMMANDS THE REVOLUTIONARY GUARDS THE ZEALOUS SHOCK TROOPS OF THE TEHRAN GOVERNMENT AND BRIG GEN AHMAD VAHIDI WHO HEADS THE QODS FORCES A SECRET UNIT THAT EXPORTS ISLAMIC REVOLUTION WHAT EMERGED FROM THE WEEKEND MEETING WAS A MULTIFACETED AGREEMENT THE PUBLIC PART OF THE DEAL INVOLVED A 300 MILLION ECONOMIC PACKAGE IN WHICH IRAN AGREED TO SUPPLY SUDAN WITH OIL AND TECHNICAL ASSISTANCE IN RETURN FOR LIVESTOCK AND WHEAT THE PRIVATE ACCORD WAS MORE WORRISOME THE REVOLUTIONARY GUARDS WOULD BEGIN TRAINING ISLAMIC FUNDAMENTALIST AND TERRORIST GROUPS IN CAMPS INSIDE SUDAN ACCORDING TO US AND OTHER OFFICIALS AMONG THE GROUPS THAT HAVE PARTICIPATED IN THE TRAINING GAA'AT ISLAMI THE EGYPTIAN FACTION STRONGLY INFLUENCED BY SHEIK OMAR ABDELRAHMAN WHOSE FOLLOWERS HAVE BEEN IMPLICATED IN TERRORIST ACTIVITIES IN NEW YORK AND EGYPT AN NAHDA AN OUTLAWED TUNISIAN ISLAMIC GROUP AND THE ISLAMIC SALVATION FRONT WHICH WON A SURPRISE ELECTION VICTORY IN ALGERIA BEFORE THE MILITARY BANNED IT ABOUT 20 CAMPS ARE NOW OPERATING MIDEAST ANALYSTS SAY THE PACT APPARENTLY HAS ALREADY BORNE FRUIT TUNISIA RECENTLY INTERCEPTED AN AN NAHDA UNIT THAT TRAVELED FROM SUDAN ACROSS LIBYA INTO TUNISIA THE TUNISIAN FOREIGN MINISTER TOLD REP HARRY JOHNSTON CHAIRMAN OF A HOUSE FOREIGN AFFAIRS SUBCOMMITTEE AND EGYPT'S AGRICULTURE MINISTER COMPLAINED AT A RALLY LATE LAST YEAR THAT IRANIANBACKED FUNDAMENTALISTS WERE PLOTTING TO BLOW UP THE ASWAN HIGH DAM ALGERIA TUNISIA AND EGYPT ALL ARE PERSUADED THAT THE IRANIANS ARE CONDUCTING SUBVERSIVE ACTIONS AGAINST THEM USING SUDAN AS A STAGING AREA SAYS ROBERT GATES PRESIDENT BUSH'S LAST DIRECTOR OF CENTRAL INTELLIGENCE INDEED SOMETHING NEW IS AFOOT IN THE MUSLIM WORLD THE IRANSUDAN CONNECTION IS THE FIRST TIME THAT IRAN WHICH IS FRULED BY MEMBERS OF THE MINORITY SHIITE SECT OF ISLAM HAS FORGED LINKS WITH A SUNNI MUSLIM GOVERNMENT THOSE TIES SEND SHUDDERS THROUGH THE LARGELY CONSERVATIVE SUNNI ARAB WORLD MEANWHILE CROSSBORDER COOPERATION AMONG ISLAMIC GROUPS IS GROWING ELSEWHERE IRAN IS AIDING THE TURKISH ISLAMIC JIHAD GROUP AND GAINING INFLUENCE ACROSS THE CENTRAL ASIAN REPUBLICS OF THE FORMER SOVIET UNION AND IRANIANSUPPORTED UNDERGROUND GROUPS IN TUNISIA AND ALGERIA ARE EXPANDING THEIR TIES THIS INTERNATIONALIZATION OF RADICAL ISLAM IS MENACING ARAB REGIMES SUCH AS EGYPT'S SECULAR GOVERNMENT IN ADDITION US INTERESTS ARE THREATENED BECAUSE WASHINGTON HAS COUNTED ON THOSE GOVERNMENTS WITH REGARD TO OIL PRICES AND MIDEAST PEACE MOREOVER SHORTLY AFTER THE US HAILED THE COLLAPSE OF COMMUNISM RADICAL ISLAM IS EMERGING AS AN INTERNATIONAL MOVEMENT THAT IS EXPANSIONIST AND IDEOLOGICALLY HOSTILE TO THE US OF COURSE ISLAM ISN'T REPLACING COMMUNISM AS AMERICA'S GLOBAL ENEMY MANY MUSLIMS INCLUDING A SIZABLE POPULATION INSIDE THE US COEXIST AMICABLY WITH WESTERN CULTURE AND ISLAMIC GROUPS DESPITE THE INCREASED COOPERATION AMONG ISLAMIC FACTIONS ARE FAR FROM UNIFIED BUT IRONICALLY THE SEEDS FOR SOME OF THAT COOPERATION WERE SOWN DURING WASHINGTON'S PROGRAM OF ARMING THE MUJAHEDEEN WARRIORS IN THEIR CAMPAIGN TO DRIVE THE SOVIETS OUT OF AFGHANISTAN IN THE 1980S THAT JIHAD OR HOLY WAR BUILT TIES AMONG ISLAMIC UNITS FROM EGYPT SAUDI ARABIA SUDAN ALGERIA AND MOROCCO ALL OF WHICH CONTRIBUTED FORCES NOW THEY ARE COMING HOME AND GOING ELSEWHERE AT LEAST TWO OF THE SUSPECTS IN THE WORLD TRADE CENTER BOMBING AND TWO OF THE MEN INDICTED FOR PLOTTING OTHER TERRORIST ACTS IN NEW YORK WERE VETERANS OF THE AFGHAN WAR ACCORDING TO US OFFICIALS IN ADDITION SOME US OFFICIALS STRONGLY SUSPECT THAT SUDANESE DIPLOMATS AT THE UNITED NATIONS WERE DEEPLY INVOLVED IN THE SECOND SET OF TERRORIST PLOTS IN NEW YORK THE WORLD HAD BRACED FOR THE SPREAD OF MILITANT FUNDAMENTALISM BEFORE AFTER THE 1979 IRANIAN REVOLUTION BUT THE FUNDAMENTALIST FIRE DIDN'T SPREAD IRAN GOT BOGGED DOWN IN A MURDEROUS EIGHTYEAR WAR WITH IRAQ AND MANAGED TO WOO ONLY A SHIITE COMMUNITY OF LEBANON NOW THE ARAB WORLD HAS BECOME FERTILE GROUND FOR IRAN'S BRAND OF ISLAM THE REGION IS RIFE WITH DISGUST OVER THE CORRUPTION OF WESTERNLEANING LEADERS WHO SEEM INCAPABLE OF IMPROVING MISERABLE ECONOMIC CONDITIONS HIGH UNEMPLOYMENT AND GROSSLY UNEQUAL DISTRIBUTION OF THE REGION'S OIL WEALTH ARE ESPECIALLY VEXATIOUS SO ISLAM IS INCREASINGLY VIEWED AS THE ONLY REAL ALTERNATIVE TO DECADES OF FAILED ARAB NATIONALISM SOCIALISM AND SECULARISM THEN HATREDS FLARED FURTHER WHEN ALGERIA TUNISIA AND EGYPT CRACKED DOWN HARSHLY ON LOCAL ISLAMIC MOVEMENTS ANTIAMERICAN FEELING STIRRED BY THE GULF WAR IS STILL SMOLDERING AND NOW MANY ARABS ARE BITTER OVER THE WEST'S FAILURE TO PROTECT BOSNIA'S MUSLIMS WITHIN RADICAL ISLAM THE US IS SEEN AS THE EMBODIMENT OF DESPISED WESTERN VALUES BECAUSE THIS HOSTILITY IS IDEOLOGICAL AND APART FROM PARTICULAR TERRITORIAL OR POLITICAL QUARRELS THE US CAN DO LITTLE TO SOFTEN IT SO FAR THE US HAS NO REAL STRATEGY FOR DEALING WITH RADICAL ISLAM ALL THIS HAS CONTRIBUTED TO A PICTURE OF THE FAILURES OF ARAB REGIMES AND THE UNWILLINGNESS OF WESTERN GOVERNMENTS TO LIVE UP TO THE CRITERIA THAT THEY NORMALLY TOUTDEMOCRACY SELFDETERMINATION AND HUMAN RIGHTS SAYS JOHN ESPOSITO A MIDEAST EXPERT AT GEORGETOWN UNIVERSITY AND A STATE DEPARTMENT ADVISER THIS IS A TIME WHEN IT'S ALL COMING TOGETHER CERTAINLY THE TIES BETWEEN IRAN AND SUDAN HAVE STRENGTHENED IN MARCH 1992 THE TWO NATIONS BEGAN SCHEDULED AIRLINE SERVICE BETWEEN THEIR CAPITALS A MONTH LATER THE UNDERSECRETARY OF IRAN'S RECONSTRUCTION CRUSADE A RURAL PUBLICWORKS ORGANIZATION VISITED SUDAN TO INAUGURATE AN AGRICULTURAL CENTER NEAR KHARTOUM AND IN JUNE FOLLOWING A THREEMONTH ENERGY CRUNCH THAT HAD CARS LINED UP AT SERVICE STATIONS FOR HOURS AN IRANIAN OIL TANKER DOCKED AT PORT SUDAN AND THE SHORTAGES WERE ALLEVIATED US OFFICIALS SAY IRAN ALSO HAS SUPPLIED KHARTOUM WITH WEAPONS INCLUDING OLDERMODEL JET AIRCRAFT TANKS AND ARTILLERY PIECES FOR SUDAN'S CIVIL WAR AGAINST SECESSIONIST FORCES IN THE SOUTH ACCORDING TO US OFFICIALS AND MOHAMMAD MOHADDESSIN AN OFFICIAL OF AN IRANIAN EXILE GROUP US ANALYSTS SAY GEN REZAI OF THE REVOLUTIONARY GUARDS MADE A SECOND SECRET VISIT TO KHARTOUM IN MARCH 1992 AND MET WITH THE SUDANESE ARMED FORCES' GENERAL STAFF THEY ARE BELIEVED TO HAVE DISCUSSED THE CIVIL WAR HOWEVER MUCH OF THE AID PROMISED TO SUDAN HAS BEEN DELAYED BY THE DETERIORATING ECONOMIC CONDITIONS IN IRAN THE IRANSUDAN LINK IS A MARRIAGE OF IDEOLOGY AND CONVENIENCE HASSAN ALTURABI SUDAN'S URBANE WESTERNEDUCATED LEADER DREAMS OF SPREADING ISLAMIC LAW FAR BEYOND HIS BORDERS TEHRAN SEES SUDAN WHICH IS DOMINATED BY MUSLIMS IN THE NORTH AND BLACK AFRICANS IN THE SOUTH AS A SPRINGBOARD INTO THE MIDEAST AND AFRICA FROM PORT SUDAN IT IS A SHORT TRIP ACROSS THE RED SEA TO SAUDI ARABIA INDEED JIDDAH HAS MANY RESIDENTS FROM SUDAN AND WITH AN EYE ON WEST AFRICA IRAN ALREADY HAS RECENTLY INCREASED ITS DIPLOMATIC PRESENCE IN SENEGAL IF YOU BELIEVE IN THE MISSIONARY ROLE OF ISLAM YOU'LL BE INTERESTED IN AN AFRICAN PRESENCE SAYS PATRICK CLAWSON AN EXPERT ON IRAN AT THE NATIONAL DEFENSE UNIVERSITY IN WASHINGTON IRAN ALSO SEES SUDAN AS THE BACK DOOR TO EGYPT IRAN HAS ALWAYS CONSIDERED ITS ARYAN CULTURE SUPERIOR TO THAT OF ITS ARAB NEIGHBORS TO IRAN'S LEADERS MOST ARABS ARE SUSMAR KHOR LIZARD EATERS BUT EGYPT WITH ITS LONG HISTORY AND TIES TO THE US IS TAKEN MORE SERIOUSLY IN TEHRAN EGYPT ALSO IS VIEWED AS THE MAIN BLOCK TO IRAN'S HEGEMONY IN THE PERSIAN GULF SUDAN'S MR TURABI IS DRIVEN BY ABIDING DISDAIN FOR SAUDI ARABIA THE SAUDIS REBUFFED THE SUDANESE LEADER IN THE SUMMER OF 1990 WHEN HE SOUGHT FINANCIAL HELP FOR HIS BELEAGUERED COUNTRY DIPLOMATIC SOURCES SAY TO RETALIATE HE HAS SPREAD RUMORS THAT SAUDI ARABIA WAS BACKING THE CHRISTIANLED FORCES IN SUDAN'S SOUTH DURING THE GULF WAR MR TURABI TRIED TO RALLY ARAB POPULATIONS TO SUPPORT IRAQ AND AFTERWARD HE FORMED THE PAN ARAB AND ISLAMIC CONFERENCE CONVENING FUNDAMENTALIST LEADERS FROM ALGERIA TUNISIA EGYPT INDONESIA AND MALAYSIA ACCORDING TO A US ANALYST WHO FOLLOWS SUDAN IN AN INTERVIEW EARLIER THIS YEAR IN KHARTOUM MR TURABI COMBINED HIS HATRED FOR TRADITIONAL ARAB RULERS SUCH AS EGYPTIAN PRESIDENT HOSNI MUBARAK AND SAUDI ARABIA'S KING FAHD WITH HIS MESSIANIC STREAK THE GOVERNMENTS OF EGYPT AND SAUDI ARABIA ARE NOT ISLAMIC HE DECLARED ACCORDING TO A US EXPERT'S ENGLISH TRANSLATION FROM THE ARABIC THEY ARE CONTEMPTIBLE AND WILL BE OVERTHROWN BY TRUE ISLAMICS ONE BAROMETER OF THE FEAR THAT THE IRANSUDAN ALLIANCE HAS SPARKED IN THE MIDEAST IS THE AMOUNT OF EXAGGERATION IT HAS GENERATED IRANIAN EXILE GROUPS CLAIM THAT THERE ARE THOUSANDS OF REVOLUTIONARY GUARDS IN SUDAN US OFFICIALS ESTIMATE THE NUMBER AT SEVERAL HUNDRED EGYPT'S AGRICULTURE MINISTER CONTENDED IN THE ECONOMIST MAGAZINE THAT IRAN WAS ENCOURAGING SUDAN TO PLANT SUGARCANE FIELDS TO GIVE TEHRAN'S AGENTS HIDING PLACES NEVERTHELESS THE TIES BETWEEN THE GOVERNMENTS ARE IMPORTANT AND SUDAN CAN SURELY USE ANY HELP IT CAN GET IT IS BURDENED WITH 14 BILLION OF DEBT THE US SANCTIONS IMPOSED AFTER A 1989 COUP OUSTED AN ELECTED GOVERNMENT AND AN ONAGAIN OFFAGAIN CIVIL WAR DATING TO 1957 ITS MAIN OIL SUPPLIER HAD BEEN LIBYA BUT THE LIBYANS TURNED OFF THE TAP IN EARLY 1992 BECAUSE THEY TOO FELT THREATENED BY THE FUNDAMENTALISTS IN KHARTOUM SOME EXPERTS SAY THE IRANSUDAN RELATIONSHIP IS FOLLOWING A PATTERN SET BY TEHRAN IN ITS DEALINGS WITH LEBANON SHORTLY AFTER MR RAFSANJANI'S VISIT IRAN APPOINTED A NEW AMBASSADOR TO KHARTOUM MAJID KAMAL TO TEND TO THE TIES BETWEEN THE COUNTRIES ACCORDING TO A US STATE DEPARTMENT PUBLICATION PATTERNS OF GLOBAL TERRORISM 1992 MR KAMAL WHO WAS INVOLVED IN THE 1979 TAKEOVER OF THE US EMBASSY IN TEHRAN SERVED IN BEIRUT IN THE 1980S WHERE HE WAS A FOUNDER OF HEZBOLLAH THE TERRORIST GROUP THAT KIDNAPPED AMERICANS AND OTHER WESTERNERS IRAN'S REVOLUTIONARY GUARDS HELPED TRAIN HEZBOLLAH NOW THEY ARE TRAINING SUDAN'S POPULAR DEFENSE FORCES WHICH IS AN ISLAMIC FORCE SEPARATE FROM THE ARMY AND LOYAL TO MR TURABI ACCORDING TO KENNETH KATZMAN A MIDEAST ANALYST AT THE CONGRESSIONAL RESEARCH SERVICE RECENT ATTENTION TO SUSPECTED TIES TO TERRORIST ACTIVITIES IN THE US AND EGYPT HAS PROMPTED SUDAN AND IRAN TO TRY TO LOWER THE VISIBILITY OF THEIR BUDDING RELATIONSHIP THE US MILITARY DEPLOYMENT IN NEARBY SOMALIA LAST DECEMBER WORRIED SUDAN'S LEADERS WHO FEARED THAT SUCH A HUMANITARIAN MISSION WOULD BE LAUNCHED AGAINST THEIR EQUALLY IMPOVERISHED NATION ALSO IN DECEMBER THE UN CENSURED SUDAN FOR HUMANRIGHTS VIOLATIONS AT A JUNE MEETING IN CAIRO OF THE ORGANIZATION OF AFRICAN UNITY EGYPT'S PRESIDENT MUBARAK MET PRIVATELY WITH SUDAN'S PRESIDENT TO PROTEST KHARTOUM'S ACTIVITIES THE TWO LEADERS AGREED THAT THEIR FOREIGN MINISTERS WOULD MEET IN A FOLLOWUP SESSION MR CLAWSON ALSO NOTES A DECLINE IN IRANIAN PRESS REPORTS ABOUT MEETINGS BETWEEN IRAN AND SUDAN BUT MOST EXPERTS EXPECT THE IRANSUDAN FRIENDSHIP TO EXPAND TO THE WORRY OF NEIGHBORING GOVERNMENTS IN A RECENT INTERVIEW IN THE LOCAL PRESS MR TURABI IS QUOTED AS SAYING IN CAIRO AND RIYADH THE TRADITIONAL RELIGIOUS ESTABLISHMENTS ARE TREMBLING 9308180120 930818 WHO'S NEWS SYMPHONY PHARMACEUTICALS INC SYMPHONY PHARMACEUTICALS INC PHILADELPHIA THIS PRIVATE BIOPHARMACEUTICAL COMPANY SPECIALIZING IN DRUGS FOR BRAIN DISORDERS NAMED MICHAEL E LEWIS TO THE NEWLY CREATED POSITION OF SENIOR DIRECTOR OF SCIENTIFIC AFFAIRS THE 41YEAROLD DR LEWIS WAS PREVIOUSLY VICE PRESIDENT RESEARCH AT CEPHALON INC A BIOPHARMACEUTICAL COMPANY HE COFOUNDED A CEPHALON SPOKESMAN SAID THAT THE COMPANY WOULD MISS DR LEWIS BUT THAT HIS DEPARTURE WASN'T A SIGNIFICANT EVENT FOR CEPHALON SYMPHONY PHARMACEUTICALS INC NAMED MICHAEL E LEWIS VICE PRESIDENT RESEARCH HE HAD BEEN SENIOR DIRECTOR OF SCIENTIFIC AFFAIRS AT CEPHALON INC AN ITEM WEDNESDAY INCORRECTLY REVERSED THOSE TITLES 9308180119 930818 AT&T WORLDSPAN SIGN PACT NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT SIGNED A FIVEYEAR 50 MILLION AGREEMENT TO PROVIDE AND MANAGE A DATA NETWORK SYSTEM THROUGHOUT EUROPE FOR WORLDSPAN TRAVEL INFORMATION SERVICES WORLDSPAN BASED IN ATLANTA GA OPERATES A COMPUTERIZED RESERVATIONS SYSTEM SERVING MORE THAN 12000 TRAVEL AGENCIES WORLDWIDE IT IS JOINTLY OWNED BY SEVERAL AFFILIATES OF SEVERAL AIRLINES AND BY A COMPUTER RESERVATIONS SYSTEMS COMPANY BASED IN SINGAPORE 9308180118 930818 INTERNATIONAL FRANCE DENIES IT PLANS TO IMPOSE CAPITAL CONTROLS BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANCE DOESN'T PLAN TO REINTRODUCE FOREIGNEXCHANGE CONTROLS TO SUPPORT THE FRANC FINANCE MINISTER EDMOND ALPHANDERY SAID HE SAID SUCH CURBS WOULD CONFLICT WITH PLANS FOR EUROPEAN MONETARY UNION MR ALPHANDERY'S REMARKS APPEARED AIMED AT REPAIRING THE FALLOUT FROM REMARKS MADE BY PRIME MINISTER EDOUARD BALLADUR LAST THURSDAY SPEAKING ON FRENCH TELEVISION HE HAD CALLED FOR REFORMS IN CURRENCY MARKETS WHERE HE SAID EXCESSES OF LIBERTY EXPLOITED BY SPECULATORS THREATENED TO DESTABILIZE WORLD ECONOMIES JITTERY FINANCIAL MARKETS INTERPRETED HIS COMMENTS TO MEAN THAT THE FRENCH GOVERNMENT WAS CONSIDERING REIMPOSING CONTROLS ON CROSSBORDER CAPITAL FLOWS SEPARATELY THE BANK OF FRANCE CROPPED ITS OVERNIGHT LENDING RATE TO BANKS TO 875 FROM 925 THE THIRD REDUCTION IN THE RATE IN TWO WEEKS HELPED RALLY THE FRENCH FRANC BY SIGNALING A GRADUAL EASING IN MONETARY POLICY TO HELP LIFT FRANCE OUT OF RECESSION IN REMARKS TO A FRENCH NEWS SERVICE LATE MONDAY LATER CONFIRMED BY THE FINANCE MINISTRY MR ALPHANDERY SAID HE CONSIDERED IT TOTALLY ABSURD TO THINK THAT FRENCH AUTHORITIES HAVE IT IN MIND TO REESTABLISH ANY KIND OF FOREIGN EXCHANGE CONTROLS THE CLARIFICATION ALSO HELPED STEADY THE FRENCH FRANC IN CURRENCY MARKETS UPSET BY THE SPECULATION OF IMPENDING CAPITAL CONTROLS TO DEFEND THE FRENCH FRANC THE FRENCH FRANC RALLIED TO CLOSE EUROPEAN TRADING AT ABOUT 35270 FRANCS TO THE GERMAN MARK AFTER SLUMPING TO A RECORD LOW OF 35465 FRANCS MONDAY 9308180117 930818 TUESDAY'S MARKETS INDUSTRIALS HIT HIGH BONDS DROP CONSUMER ISSUES LEAD UPTURN IN STOCKS DOLLAR ENDS MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES CLIMBED TO RECORD LEVELS AS LONGBATTERED CONSUMERGROWTH STOCKS MOVED INTO THE SPOTLIGHT BOND PRICES SLIPPED AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 783 POINTS TO A RECORD 358698 STANDARD & POOR'S 500STOCK INDEX MOVED 075 HIGHER TO 45313 FOR THE SECOND STRAIGHT DAY THE NASDAQ COMPOSITE INDEX SHOT TO A NEW HIGH GAINING 412 TO 73101 WE'RE SEEING THE BLOSSOMING OF THE SUMMER RALLY SAID JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ & CO BUT IT'S KIND OF A LATE BLOOMER MR MCALINDEN SAID THAT INVESTORS FLOCKED INTO FOOD TOBACCO AND DRUG STOCKS PARTLY BECAUSE OF CONTINUING WORRIES ABOUT THE ECONOMY BIG CONSUMERPRODUCTS COMPANIES USUALLY ARE ABLE TO MAINTAIN STRONG EARNINGS GROWTH EVEN IN UNCERTAIN ECONOMIC TIMES WITH THE ECONOMIC PICTURE MURKY INVESTORS ARE RUNNING TO THE TRADITIONAL SAFE HAVENS MR MCALINDEN SAID AS A RESULT CONSUMER STOCKS OUTPERFORMED ECONOMICALLY SENSITIVE ISSUES YESTERDAY THE MORGAN STANLEY CONSUMER INDEX JUMPED 197 TO 18543 WHILE THE CYCLICAL INDEX WAS VIRTUALLY UNCHANGED DESPITE THE REBOUND IN GROWTH STOCKS JAMES R MCCALL CHIEF INVESTMENT OFFICER AT BOSTONBASED KEYSTONE CUSTODIAN FUNDS SAID A LONGTERM TREND THAT FAVORS ECONOMICALLY SENSITIVE STOCKS REMAINS INTACT MR MCCALL SAID THAT AFTER LEADING THE MARKET FOR MOST OF THE 1980S CONSUMER STOCKS ARE FACING PRICING PRESSURES THAT WILL REMAIN FOR A WHILE AT THE SAME TIME COMPANIES THAT HAVE CUT COSTS AND INCREASED PRODUCTIVITY WILL CONTINUE TO TURN IN BETTER PERFORMANCES LONGTERM BOND PRICES CLIMBED EARLY IN THE DAY AFTER THE COMMERCE DEPARTMENT REPORTED THAT HOUSING STARTS FELL 27 IN JULY FROM JUNE THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR BOND DROPPED BELOW 63 BUT REVERSED DIRECTION LATER AS INVESTORS WERE UNABLE TO SUSTAIN THAT LEVEL AMID LACKLUSTER TRADING ANALYSTS SAID THE SIZZLING BOND MARKET RALLY WAS DUE FOR A REST MR MCCALL THINKS LONGTERM INTEREST RATES WILL STAY IN A RANGE OF 6 TO 7 WE'VE SEEN THE BEST OF THE LOW RATES HE SAID WE'RE NOT GOING TO 5 WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 017 TO 11218 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2613 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1020 ISSUES ROSE AND 922 FELL BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST MORE THAN 1/8 POINT OR MORE THAN 125 FOR EACH 1000 FACE AMOUNT TO YIELD 631 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16931 MARKS AND 10110 YEN COMPARED WITH 16870 MARKS AND 10155 YEN MONDAY 9308180116 930818 DAYTON HUDSON REPORTS PROFIT FELL 43 IN 2ND QUARTER PENNEY'S NET ROSE 40 BY GREGORY A PATTERSON AND BOB ORTEGA STAFF REPORTERS OF THE WALL STREET JOURNAL TWO MAJOR RETAILERS POSTED SHARPLY DIFFERENT PROFIT PICTURES IN THE SECOND QUARTER AS DAYTON HUDSON CORP REGISTERED A 43 SLIDE AND JC PENNEY CO REPORTED A 40 INCREASE DAYTON HUDSON THE NATION'S FOURTHLARGEST RETAILER SAID WEAKERTHANEXPECTED SALES IN ITS MODERATE AND UPSCALE DEPARTMENT STORE DIVISIONS HURT EARNINGS THE MINNEAPOLIS CONCERN REPORTED NET INCOME OF 24 MILLION OR 28 CENTS A SHARE DOWN FROM EARNINGS OF 42 MILLION OR 51 CENTS A SHARE A YEAR EARLIER EARNINGS IN THE LATEST QUARTER ENDED JULY 31 INCLUDED A 5 MILLION NONRECURRING CREDIT FROM A CASUALTY LOSS RECOVERY SALES ROSE 8 TO 429 BILLION FROM 397 BILLION PENNEY THE NATION'S FIFTHLARGEST RETAILER SAID A SURGE IN CATALOG SALES PLUS A DRIVE TO CUT COSTS HELPED BOOST ITS NET INCOME TO A RECORD 112 MILLION OR 43 CENTS A SHARE FOR THE QUARTER ENDED JULY 31 FROM 80 MILLION OR 31 CENTS A SHARE A YEAR EARLIER THE YEAREARLIER PERSHARE FIGURE WAS ADJUSTED FOR A 2FOR1 STOCK SPLIT PAID IN APRIL 1993 THE RETAILERS WERE THE LAST OF THE NATION'S FIVE LARGEST RETAIL CONCERNS TO REPORT SECONDQUARTER RESULTS TWO OF THEM DAYTON HUDSON AND KMART CORP POSTED LOWER EARNINGS WHILE THE OTHERS PENNEY WALMART STORES INC AND SEARS ROEBUCK & CO REPORTED RECORD EARNINGS THE COMBINED RESULTS ANALYSTS SAID SUGGEST THAT RETAILERS MUST CONTINUE TO PARE COSTS AND THAT THIS YEAR'S FALL AND CHRISTMAS SEASONS WILL BE RIFE WITH PRICE COMPETITION ANALYSTS SAID THAT PENNEY WHICH IS BASED IN PLANO TEXAS IS BEGINNING TO BENEFIT FROM ITS EFFORTS TO ATTRACT SHOPPERS FROM SEARS ROEBUCK'S NOWDEFUNCT CATALOG DIVISION IF YOU COMPARE THE PENNEY CATALOG TO THAT OF A YEAR AGO IT HAS MUCH MORE OF A FOCUS ON VALUE MUCH SHARPER PRICE POINTS NOW SAID L WAYNE HOOD AN ANALYST FOR PRUDENTIAL SECURITIES HE AND OTHER ANALYSTS SAID THEY EXPECT PENNEY'S CATALOG SALES TO PICK UP STEAM IN THE SECOND HALF PENNEY CHAIRMAN WILLIAM R HOWELL HAS PREDICTED CATALOG PERCENTAGESALES GAINS IN THE LOW TEENS FOR THE REST OF THE YEAR PENNEY STOCK CLIMBS PENNEY'S SECONDQUARTER RESULTS ABOUT THREE CENTS A SHARE AHEAD OF ANALYSTS' PROJECTIONS NUDGED THE COMPANY'S STOCK SLIGHTLY HIGHER IN TRADING ON THE NEW YORK STOCK EXCHANGE PENNEY'S SHARES CLOSED AT 4575 A SHARE UP 50 CENTS SALES FOR THE QUARTER ROSE 46 TO 396 BILLION FROM 379 BILLION IN 1992 THE COMPANY SAID THAT AS EXPECTED ITS GROSS PROFIT MARGIN DECLINED TO 317 FROM 324 THE PREVIOUS YEAR AS A RESULT OF LOWER PRICING TO PRODUCE HIGHER UNIT SALES BUT PENNEY WAS ABLE TO TRIM ITS SELLING GENERAL AND ADMINISTRATIVE EXPENSES IN THE QUARTER BY 16 MILLION TO A RATIO OF 301 OF RETAIL SALES FROM 319 A YEAR EARLIER FOR THE FIRST SIX MONTHS NET INCOME ROSE 47 TO 318 MILLION OR 125 A SHARE FROM 216 MILLION OR 85 CENTS A SHARE A YEAR EARLIER THE 1993 SIXMONTH NET INCLUDES A 51 MILLION GAIN FROM ACCOUNTING CHANGES FOR INCOME TAXES AND A 17 MILLION CHARGE FOR DEBT REDUCTION SALES IN THE FIRST HALF GREW 46 TO 793 BILLION FROM 758 BILLION A YEAR EARLIER MEANWHILE DAYTON HUDSON'S EARNINGS FAILED TO MEET MOST ANALYSTS' EXPECTATIONS AND CONTINUED TO SUFFER FROM THE TROUBLED ECONOMY IN CALIFORNIA WHERE THE COMPANY GENERATES ONETHIRD OF ITS SALES CALIFORNIA IS STILL SOFTER THAN THE REST OF THE COUNTRY SAID KENNETH A MACKE DAYTON HUDSON CHAIRMAN SALES IN THE COMPANY'S CALIFORNIABASED MERVYN'S DIVISION FELL 5 IN STORES OPEN AT LEAST ONE YEAR OPERATING PROFIT IN THAT MODERATEPRICED DIVISION DECREASED SIGNIFICANTLY THE COMPANY SAID DAYTON HUDSON ALSO SAID IT HAD LOWER EARNINGS IN ITS DEPARTMENT STORE DIVISION AS A RESULT OF THE COMPANY'S DECISION TO CUT PRICES TO MAINTAIN SALES THAT DIVISION OPERATES DAYTON'S HUSON'S AND MARSHALL FIELD'S DEPARTMENT STORE CHAINS THE COMPANY'S BRIGHT SPOT CONTINUES TO BE ITS TARGET DISCOUNT STORE CHAIN ITS BIGGEST DIVISION WHICH POSTED HIGHER OPERATING PROFIT ON A 5 SALES GAIN IN STORES OPEN AT LEAST ONE YEAR TARGET'S OVERALL SALES INCREASED 13 FOR THE SIX MONTHS DAYTON HUDSON REPORTED AN EARNINGS DECLINE OF 30 TO 54 MILLION OR 63 CENTS A SHARE FROM 77 MILLION OR 91 CENTS A SHARE A YEAR EARLIER SALES CLIMBED 83 TO 833 BILLION FROM 769BILLION THE RESULTS SENT THE COMPANY'S STOCK TUMBLING ON WALL STREET WHERE IT FELL 150 TO CLOSE AT 6725 A SHARE IN COMPOSITE TRADING ON THE BIG BOARD 9308180115 930818 INTERNATIONAL CZECH FINANCIER SCORES RICH SUCCESS EVEN AS DETRACTORS HOPE FOR HIS FALL BY NEIL KING JR SPECIAL TO THE WALL STREET JOURNAL PRAGUE HE HAS ROCKETED FROM NOWHERE TO BECOME AT AGE 30 THE NATION'S MOST TALKEDABOUT FINANCIER WHEN CZECHOSLOVAKIA'S MASS PRIVATIZATION PLAN SEEMED POISED TO FLOP IN LATE 1991 VIKTOR KOZENY ENTICED PEOPLE TO SUPPORT IT IN DROVES IN THE PROCESS HE AMASSED HUGE STAKES IN THE BIGGEST INSTITUTIONS IN WHAT ARE NOW THE CZECH REPUBLIC AND SLOVAKIA TURNING HIS INVESTMENT FUND HARVARD CAPITAL & CONSULTING CO INTO ONE OF THE MOST POWERFUL AND CONTROVERSIAL IN EASTERN EUROPE NOW THE TALL REDHAIRED BUSINESSMAN SAYS HE HOPES TO SET UP FINANCIAL SERVICES AND FUNDS ACROSS ASIA AND RUSSIA BUILDING BY YEAR END WHAT HE CALLS A 24HOUR MANAGEMENT FUND FOR EMERGING MARKETS AROUND THE WORLD SO WHY INSTEAD OF HAILING HIM AS THE CZECH HORATIO ALGER DO SO MANY OF HIS COUNTRYMEN HOPE TO SEE HIM FALL MR KOZENY HAS ATTRACTED IMMENSE ATTENTION AND MISTRUST ALMOST SINCE THE DAY IN 1990 WHEN HE JETTED BACK FROM THE WEST TO HIS NATIVE LAND WITH HE SAYS ONLY A 3000 NEST EGG HE HAS BEEN BLASTED FOR QUESTIONABLE MARKETING AND FOR CLAIMING BACKERS THAT DIDN'T MATERIALIZE YET HIS SUPPORTERS CALL HIM A CHAMPION OF SHAREHOLDER RIGHTS AND FIND HIS STRATEGY SOUND WHILE MR KOZENY CLAIMS THAT HIS CZECH INVESTMENT FUND IS WORTH JUST OVER 1 BILLION AND THAT HE NOW CONTROLS 10 OF THE AVAILABLE STOCK IN THE CZECH REPUBLIC IT'S PREMATURE TO ASSESS WHAT HARVARD CAPITAL'S PORTFOLIO IS REALLY WORTH OR HOW IT WILL FARE MANY CZECH COMPANIES ARE IN SERIOUS FINANCIAL DIFFICULTY DEEPLY IN NEED OF INVESTMENT TO PAY FOR CRUCIAL RESTRUCTURING AND GIVEN THAT TRADING ON THE OPEN EXCHANGES BEGAN IN JUNE AND STILL REMAINS SMALL AND INCONCLUSIVE IT ISN'T KNOWN HOW EASY IT WILL BE FOR HARVARD CAPITAL TO BUY AND SELL THOSE EQUITY INVESTMENTS LAST MONTH A FORMER CZECH SECRET SERVICE AGENT WAS CHARGED WITH HANDING OVER CLASSIFIED GOVERNMENT FILES TO MR KOZENY VACLAV WALLIS 48 A FORMER COMMUNIST SPY ALLEGED THAT MR KOZENY PURCHASED FROM HIM CONFIDENTIAL CORPORATE REPORTS AND DOSSIERS ON THE SEX LIVES OF CZECH POLITICIANS MR KOZENY DENIES HE PAID MR WALLIS FOR ANY INFORMATION MR WALLIS WAS ARRESTED LAST DECEMBER IN A GOVERNMENT STING SET UP WITH HELP FROM MR KOZENY WHO CLAIMS THAT MR WALLIS WAS ATTEMPTING TO BLACKMAIL HIM A TRIAL AT WHICH MR KOZENY WILL TESTIFY IS EXPECTED TO BEGIN THIS MONTH IN A MILITARY COURT IN PILSEN WE ARE THE VICTIMS NOT THE WRONGDOERS HE SAYS IN AN INTERVIEW PRIME MINISTER VACLAV KLAUS CALLS THE ACCUSATIONS AGAINST MR KOZENY ABSURD SAYING THEY AMOUNT TO AN IDEOLOGICAL ATTACK ON PRIVATIZATION A CORNERSTONE OF CZECH ECONOMIC TRANSFORMATION THE GOVERNMENT HAS A HUGE INTEREST IN MAINTAINING PUBLIC CONFIDENCE IN THE FUNDS THAT HAVE SPRUNG FROM MR KOZENY'S ORIGINAL PRIVATIZATION FUND AS PRAGUE INVESTMENT BANKER GABRIEL EICHLER PRESIDENT OF BENSON OAK INC POINTS OUT THE ENTIRE CAPITAL MARKET IS BASED ON TRUST ANY MAJOR MISHAP COULD EASILY DESTROY THAT TRUST AND BRING THE WHOLE SYSTEM DOWN WITH IT THAT PRIME MINISTER KLAUS EQUATES MR KOZENY'S PLIGHT WITH THE FATE OF VOUCHER PRIVATIZATION SURPRISES FEW MR KOZENY WAS THE DARLING OF EASTERN EUROPE'S MOST AMBITIOUS PRIVATIZATION SCHEME IN WHICH ALL CZECHS WERE SOLD PRIVATIZATION VOUCHERS OR COUPONS AT A NOMINAL PRICE THAT THEY COULD EXCHANGE FOR SHARES IN STATE COMPANIES AS THEY WERE SOLD OFF VOUCHER HOLDERS COULD USE THE CHITS TO INVEST DIRECTLY IN COMPANIES OR PUT THEM IN A FUND WHOSE MANAGERS DECIDE WHICH SHARES TO BUY SOME 850000 PEOPLE PUT THEIR VOUCHERS INTO HARVARD CAPITAL MAKING IT THE CZECH REPUBLIC'S SECONDLARGEST VOUCHERBASED FUND MR KOZENY'S RISE BEGAN IN LATE 1991 AFTER THE CZECHOSLOVAK GOVERNMENT LAUNCHED PLANS TO AUCTION 1500 STATE COMPANIES PUBLIC INTEREST IN THE PLAN WAS LOWUNTIL MR KOZENY MADE HIS FAMOUS PROMISE HARVARD CAPITAL WOULD PAY 10 TIMES THE PURCHASE PRICE TO ANY INVESTOR WHO WANTED OUT OF THE FUND AFTER A YEAR SUDDENLY EVERYONE WAS TALKING ABOUT IT ON THE TRAMS IN THE STREETS AND AT WORK RECALLS JAN MACHACEK BUSINESS EDITOR AT RESPEKT A WEEKLY NEWSPAPER THAT HAS DUG REPEATEDLY INTO MR KOZENY'S FINANCIAL REALM WHERE BEFORE THERE HAD BEEN NO REAL INTEREST IN THE VOUCHER SCHEME SUDDENLY THERE WAS INTENSE FASCINATION BUT ONLY AFTER INVESTORS HAD PUT THEIR VOUCHERS IN HARVARD CAPITAL AND HAD RECEIVED A CONTRACT DID MANY REALIZE THAT MR KOZENY'S PROMISE MEANT A PAYOUT IN 1994 NOT 1993 MR KOZENY INSISTS IT WAS CLEARLY WRITTEN THAT THE PROMISE REFERRED TO A YEAR AFTER COMPANY SHARES WERE ISSUED AFTER HARVARD'S SUCCESS OTHER FUNDS JUMPED INTO THE FRAY WITH SIMILAR GUARANTEES SOME EVEN UPPING THE ANTE TO 12FOLD RETURNS AND HIGHER THE PRESS BEGAN SUGGESTING THAT HARVARD CAPITAL'S RESOURCES COULDN'T MATCH ITS PROMISE THAT THE COMPANY MIGHT COLLAPSE MR KOZENY'S NUMEROUS CRITICS OFTEN INSIST THOUGH RARELY IN PUBLIC THAT HE OWES HIS SUCCESS TO BRAVADO AND LUCK YET WHEN TIME CAME FOR MR KOZENY TO USE THE VOUCHERS TO BUY CORPORATE SHARES MOST ANALYSTS AGREE THAT HE DID SO WISELY USING MORE ACUMEN EVEN THAN THE BANKS KOZENY WAS SMART SAYS ALEXANDER ANGELL DIRECTOR OF TRADING AT WOOD & CO SECURITIES HE WENT WITH WHAT HE KNEW WOULD BE STRONG AND DIDN'T SPREAD HIMSELF TOO THIN WHILE OTHER BIG FUNDS SPREAD THEIR PORTFOLIOS AMONG HUNDREDS OF FIRMS HARVARD CAPITAL STUCK TO 51 COMPANIES MOST DOMINATE THEIR SECTORS THE BIGGEST BANKS THE MOST LIQUID UTILITIES AND CONSTRUCTION COMPANIES LIMITED TO A 20 STAKE IN ANY SINGLE COMPANY HARVARD CAPITAL DOESN'T HAVE THE PULL OF A MAJORITY SHAREHOLDER BUT ITS SHARES GIVE IT A DEGREE OF CLOUT THAT MR KOZENY HAS EVERY INTENTION OF USING HE SAYS HE WILL PUSH COMPANIES TO CUT THEIR WORK FORCES AS MUCH AS 30 AND FIRE MORE THAN 50 UPPERLEVEL MANAGERS HIS TRACK RECORD HAS WON HIM FEW FRIENDS ON THE CORPORATE SCENE MR KOZENY PULLS FEW PUNCHES INDEED HIS STYLE SETS HIM APART IN PRAGUE'S STAID BUSINESS ENVIRONMENT SO DOES HIS PAST CZECH BY BIRTH MR KOZENY FLED THE COUNTRY WITH HIS FAMILY IN THE EARLY 1970S AND LATER MOVED TO THE US NEARLY EVERYONE NOW TALKS OF HIM AS AN OUTSIDER PARTCZECH PARTAMERICAN VISITORS TO HARVARD CAPITAL'S FIVESTORY HEADQUARTERS ARE GREETED AT THE ENTRANCE BY THE SAME ARMED BODYGUARDS WHO ACCOMPANY MR KOZENY NEARLY EVERYWHERE EVEN STANDING GUARD OUTSIDE HIS SMALL APARTMENT THE QUESTIONS ABOUT MR KOZENY ARE OFT REPEATED WHERE DOES HE GET HIS MONEY WHO ADVISES HIM HOW DOES HE EXPECT TO FIND COMPETENT AND TRUSTWORTHY PEOPLE IN SOME OF HIS TARGETED EXPANSION CITIES MOSCOW ST PETERSBURG SHANGHAI SINGAPORE HONG KONG AND SAO PAULO MR KOZENY CONCEDES THAT FOR MONTHS HE'S BEEN SCOUTING FOR PARTNERS OR INVESTORS TO HELP FUEL HIS EXPANSION DRIVE THIS SPRING HIS STAFF ANNOUNCED THAT THE AUSTRIAN BANK CREDITANSTALT WAS READY TO BUY A 40 MILLION STAKE IN HARVARD CAPITAL A CLAIM THE BANK IMMEDIATELY DENIED THOUGH SOME DOUBT THE CLAIM MR KOZENY INSISTS HE WOULD HAVE NO PROBLEM CASHING OUT INVESTORS HE SAYS HE WOULD HAVE TO SELL STOCKS IN JUST FOUR OF THE 51 COMPANIES IN HIS PORTFOLIO TO COVER THE PROMISED TENFOLD RETURN TO HIS SHAREHOLDERS AN AMOUNT EQUIVALENT TO 220 MILLION SO FAR HE SAYS FEWER THAN 7 HAVE ASKED TO BE BOUGHT OUT 9308180114 930818 FINANCING BUSINESS METHANEX CORP METHANEX CORP VANCOUVER BRITISH COLUMBIA SAID IT PLANS TO ISSUE AS MUCH AS 300 MILLION OF BONDS IN THE US MARKET AS PART OF A PLAN TO REFINANCE ITS 485 MILLION OF DEBT BRUCE AITKEN VICE PRESIDENT PLANNING FOR THE METHANOL PRODUCER SAID THE COMPANY FILED A REGISTRATION STATEMENT WITH THE US SECURITIES AND EXCHANGE COMMISSION FOR THE ISSUE OF SENIOR SECURED SECONDPRIORITY NOTES HE SAID THE 300 MILLION FIGURE IS A CEILING AND METHANEX PLANS TO ISSUE ABOUT 280 MILLION OF BONDS DEPENDING ON THE OUTCOME OF ITS ONGOING NEGOTIATIONS TO RESTRUCTURE ITS BANK DEBT THE NOTES WOULD BE REPAYABLE 85 YEARS AFTER THEIR ISSUE DATE HE SAID 9308180113 930818 INTERNATIONAL WHEN IS BERLIN COMING IN FROM THE COLD GERMANS EXHIBIT ANGST ON RELOCATING THEIR CAPITAL BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN AMONG BERLINERS THESE DAYS THE QUESTION IS WHICH WILL ARRIVE HERE FIRST THE GERMAN GOVERNMENT OR THE MILLENNIUM WHAT GALLS THEM IS THAT THIS WASN'T SUPPOSED TO BE A QUESTION AT ALL TWO YEARS AGO FOLLOWING GERMAN REUNIFICATION BERLIN NARROWLY OUTPOLLED BONN IN A BUNDESTAG VOTE ON WHERE THE GERMAN GOVERNMENT SHOULD PLANT ITSELF FOR GOOD BONN HAD BEEN THE SEAT OF THE WEST GERMAN GOVERNMENT SINCE AFTER WORLD WAR II THE DECISION TO MOVE INTO THE HEART OF THE FORMER GERMAN DEMOCRATIC REPUBLIC BY 1996 WAS HAILED AS A MAJOR STEP FOR HEALING THE SCARS OF DIVISION AN ESSENTIAL PUMPPRIMER FOR THE COLLAPSED EASTERN ECONOMY AND A CONFIDENT REASSERTION OF GERMANY'S PLACE IN THE HEART OF EUROPE BUT WITH A CASH SHORTAGE BROUGHT ON BY RECESSION AND THE 100 BILLION YEARLY COSTS OF UNIFICATION THE RELOCATION IS IN DANGER OF SLIPPING WELL BEYOND THE YEAR 2000 THE DELAYS AREN'T PURELY A MATTER OF ECONOMIC DIFFICULTIES THE PROCRASTINATION ALSO REFLECTS THE AMBIVALENCE MANY WESTERN GERMANS FEEL ABOUT THE CHANGES UNIFICATION HAS WROUGHT IN THEIR LIVES FOR THEM BERLIN IS IDENTIFIED WITH THE MASSES OF EASTERNERS WHO ARE RESENTFUL ABOUT THEIR COLLAPSED REGIONAL ECONOMY THE CITY OFTEN SIGNIFIES TO WESTERNERS PROBLEMS THAT ARE THE ANTITHESIS OF THE OLD COMFORTABLE WESTERN FEDERAL REPUBLIC MASSIVE PUBLIC DEBT A FLOOD OF ASYLUMSEEKERS RIGHTWING RADICALISM AND CRIME THIS FEAR OF THE EAST SHINES THROUGH SAYS MANFRED GUELLNER OF THE FORSA POLLING INSTITUTE ALONG WITH MANY OTHER PUBLICOPINION ANALYSTS MR GUELLNER THINKS WESTERN GERMANS HAVEN'T GRASPED THAT UNIFICATION WAS MORE THAN THE WEST ABSORBING THE EAST THE LEADING POLITICAL ACTORS HAVEN'T MADE IT CLEAR THAT THE OLD FEDERAL REPUBLIC IS AS DEAD AS THE OLD GERMAN DEMOCRATIC REPUBLIC THE ISSUE HAS BEEN BOILING IN PUBLIC DEBATE IN ADVANCE OF A SEPTEMBER PARLIAMENTARY SHOWDOWN ON SETTING A MOVE DATE FOR EASTERNERS IN PART BECAUSE OF THE DECADES OF COLD WAR PROMISES BY WESTERN GERMAN POLITICIANS TO MAKE THIS CITY OF 35 MILLION THE CAPITAL OF A UNITED GERMANY THE ISSUE HAS BECOME A LITMUS TEST OF WESTERNERS' COMMITMENT TO REBUILDING EASTERN GERMANY THE CREDIBILITY OF THE FEDERAL GOVERNMENT HAS ALREADY SUFFERED FROM BROKEN PROMISES OBSERVES KONRAD WEISS A BUNDESTAG MEMBER FROM EAST BERLIN IN AN ALLUSION TO CHANCELLOR HELMUT KOHL'S PLEDGES OF PROSPERITY IN THE EAST WITHOUT TAX INCREASES FOR MOST EASTERN GERMANS BONN IS THE SYMBOL OF A CLOSED EPOCH THE ONCEEBULLIENT SPIRITS IN THE CITY EVEN AMONG AFFLUENT WEST BERLINERS HAVE BEEN PUNCTURED PEOPLE FEEL ABANDONED SAYS NORBERT MEISNER BERLIN'S SENATOR FOR ECONOMIC ISSUES THERE IS A WRETCHED GRUMBLING MOOD WOLFGANG SCHAEUBLE LEADER OF THE RULING PARTY DELEGATION IN THE BUNDESTAG AND PROBABLY THE MOST POWERFUL FIGURE IN HIS PARTY AFTER MR KOHL IS SPEARHEADING THE EFFORT TO PUT THE MOVE BACK ON TRACK THIS ISN'T JUST AN ECONOMIC QUESTION IT'S ALSO A PSYCHOLOGICAL ONE HE SAYS FOR A CONSIDERABLE NUMBER OF PEOPLE IN THE NEW EASTERN STATES ANOTHER DELAY OF THE MOVE WOULD MEAN TO THEM THAT THE PEOPLE IN THE WEST AREN'T THAT INTERESTED OR AFFECTED BY REUNIFICATION MR SCHAEUBLE WHO NEGOTIATED THE 1990 UNITY TREATY BETWEEN THE GERMANYS IS PUSHING TO SET THE MOVE FOR 1998 PART OF THE PROBLEM IN SETTING A DATE HAS BEEN CALCULATING THE COST ONLY ABOUT A THIRD OF FEDERAL PERSONNEL IN BONN OR 12000 PEOPLE ARE SLATED TO MOVE TO BERLIN AND COST ESTIMATES RUN FROM AS LOW AS 18 BILLION TO AS HIGH AS 53 BILLION MR SCHAEUBLE THINKS HE CAN BRING IN A FIGURE NOT FAR FROM THE LOWER END AND IS CONFIDENT HE CAN MUSTER THE POLITICAL SUPPORT BUT HIS RESOLUTION WILL ALSO GIVE AN ESTIMATE FOR A MOVE IN 2002 A DATE HE IS AGAINST BUT SAYS HE CAN'T RULE OUT THOUGH A SMALL MAJORITY FAVORED THE MOVE TO BERLIN IN 1991 POLLS HAVE SHOWN FOR A YEAR THAT THREEQUARTERS OF GERMANS A RATIO PARALLELING THAT OF WESTERNERS TO EASTERNERS WANT RELOCATION POSTPONED AT A TIME WHEN THE GOVERNMENT HAS JUST UNVEILED 12 BILLION IN PAINFUL SPENDING CUTS MUCH OF IT IN UNEMPLOYMENT BENEFITS AND IS SET TO IMPOSE A 75 INCOME TAX SURCHARGE AND A 35CENTAGALLON GAS TAX INCREASE THE MOVE STRIKES MANY GERMANS AS ONE BURDEN TOO MANY MR KOHL WAS A STRONG ADVOCATE OF BERLIN IN 1991 BUT WHERE HE WILL COME DOWN ON THE ISSUE THIS FALL IS UNCLEAR MR KOHL'S POLITICAL TALENT LIES IN HIS ABILITY TO GAUGE HOW MUCH CHANGE GERMAN VOTERS WILL STAND FOR WITH 17 ELECTIONS SCHEDULED IN 1994 AT THE LOCAL STATE EUROPEAN AND FEDERAL LEVEL INCLUDING ONE THAT WILL DECIDE WHO OCCUPIES THE CHANCELLERY HIS POLITICAL ANTENNAE ARE WORKING OVERTIME IF THE MOVE IS SET FOR 2002 OR LATER MANY ADVOCATES OF BERLIN FEAR THE PROJECT COULD BE OVERTURNED OR SLIMMED DOWN BY THE BUNDESTAG SUPPORT FOR BERLIN IS WEAK AMONG YOUNGER LEGISLATORS AND ARDOR FOR REVITALIZING THE EAST COULD WANE WESTERNERS HAVE BALKED AT THE IDEA OF MAKING SACRIFICES TO SPEED THE MOVE BUNDESTAG MEMBERS FOR EXAMPLE ORIGINALLY DEMANDED TWICE AS MUCH OFFICE SPACE AS THEY HAD IN BONN THEY HAVE SINCE SETTLED FOR A 50 INCREASE BUREAUCRATS HAVE BEEN LOATH TO ACCEPT OFFICES IN REMODELED BUILDINGS INSTEAD OF NEW ONES PROFESSOR CARLCHRISTOPH SCHWEITZER A BONN POLITICAL SCIENTIST AND FORMER BUNDESTAG MEMBER SAYS AFTER UNIFICATION THEY PUT UP TEMPORARY BUILDINGS IN SIX MONTHS IN BONN FOR THE EXTRA MEMBERS OF THE BUNDESTAG FROM THE NEW STATES A SIMILAR EFFORT IN BERLIN HE SAYS WOULD HAVE BEEN SUFFICIENT THE DELAYS HAVE PROMPTED FEARS THAT BERLIN'S PREDICTED COMEBACK COULD FIZZLE THAT WOULD BE A BLOW FOR THE ENTIRE STRUGGLING EASTERN REGION UNIFICATION AND THE DECISION TO MOVE THE GOVERNMENT TO BERLIN SET LOOSE A FLOOD OF PRIVATE INVESTMENT THAT WAS TO POUR 24 BILLION INTO THE CITY IN THE NEXT FIVE YEARS BUT NOW MANY FIRMS THAT HAVE ACQUIRED PROPERTY AND BUILDING PERMITS ARE WAITING TO SEE IF THE GOVERNMENT DOES MOVE A STUDY BY BERLINER BANK FOUND THAT A 10YEAR DELAY WOULD MEAN A DIRECT LOSS OF 13 BILLION FOR BERLIN'S ECONOMY AND NEARLY 22000 JOBS ALTHOUGH THERE IS A GROWING AWARENESS IN WESTERN GERMANY THAT WITHOUT THE GOVERNMENT BERLIN WOULD FACE CRITICAL ECONOMIC PROBLEMS THIS HASN'T HAD MUCH IMPACT ON THE WESTERN DESIRE TO KEEP EASTERN GERMANY AND ITS DIFFICULTIES AT ARM'S LENGTH THERE IS A TRYING NOT TO NOTICE WHAT IS GOING ON SAYS WOLF LEPENIES A SOCIOLOGIST AND DIRECTOR OF BERLIN'S INSTITUTE FOR ADVANCED STUDY A FREQUENT TRAVELER TO THE WESTERN STATES MR LEPENIES SAYS WHEN I SEE THERE ARE SMALL COMMUNITIES BUILDING NEW SWIMMING POOLS FOR MILLIONS AND MILLIONS OF MARKS I'M APPALLED WE SHOULD BE SAYING THAT THIS IS SOMETHING WE JUST CAN'T DO RIGHT NOW THE SENTIMENT IS ECHOED BY MR WEISS WHO SAYS WESTERN GERMANS' REFUSAL TO SAY FAREWELL TO THE OLD REGIME HAS TRANSLATED INTO AN INABILITY TO SEE PROBLEMS UNDER THEIR NOSES 9308180112 930817 POLITICS & POLICY IN A BATTLE OVER THE TRADE ACCORD WITH MEXICO CLINTON'S FRIENDS AND FOES MAY EXCHANGE ROLES BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON JUST WHEN REPUBLICANS WORRIED THAT THEIR IMAGE WAS TOO NEGATIVE ALONG COMES AN ISSUE THAT LETS THEM HELP PRESIDENT CLINTON WHILE HURTING HIS PARTY AT THE SAME TIME WITH FREE TRADE A STAPLE OF GOP PHILOSOPHY THE NORTH AMERICAN FREE TRADE AGREEMENT GIVES REPUBLICANS LAWMAKERS A GOLDEN OPPORTUNITY TO SHOW THEY'LL CROSS PARTY LINES TO SUPPORT PARTS OF MR CLINTON'S AGENDA BUT THERE'S A PARTISAN PAYOFF AS WELL BECAUSE NAFTA ALIENATES CRUCIAL SEGMENTS OF THE DEMOCRATIC PARTY IT'S A DREAM COME TRUE FOR REPUBLICAN TACTICIANS SAYS DEMOCRATIC POLLSTER ALAN SECREST LIKE SOME OTHER DEMOCRATIC STRATEGISTS MR SECREST SEES THE AGREEMENT AS MORE AKIN TO A NIGHTMARE THE POLITICS OF THE TRADE AGREEMENT TURNS THE BITTER PARTISANSHIP OF MR CLINTON'S RECENT BUDGET BATTLES ON ITS HEAD AT THE MOMENT THE TOP CHEERLEADERS FOR THE WHITE HOUSE POSITION ON THE AGREEMENT ARE SENATE REPUBLICAN LEADER BOB DOLE OF KANSAS AND HOUSE GOP WHIP NEWT GINGRICH OF GEORGIA BOTH OF WHOM HAVE BATTERED THE PRESIDENT FOR MONTHS OVER TAX INCREASES AND THE FOREMOST OBSTACLE TO THE AGREEMENT IS HOUSE MAJORITY LEADER RICHARD GEPHARDT OF MISSOURI WHO DELIVERED CRUCIAL VOTES FOR MR CLINTON'S ECONOMIC PACKAGE BUT HAS STRONGLY SIGNALED HE'LL OPPOSE NAFTA WE DON'T WANT TO GIVE THE PRESIDENT A DEFEAT BUT HE WOULD SUFFER A MAJOR DEFEAT ON THIS ONE SAYS GEORGIA REP JOHN LEWIS ANOTHER MEMBER OF THE DEMOCRATIC LEADERSHIP WHO OPPOSES THE AGREEMENT HE'S GOING TO SEE A TREMENDOUS AMOUNT OF RESISTANCE MR CLINTON PASSED QUICKLY OVER NAFTA IN A MAJOR SPEECH TO THE NATIONAL GOVERNORS ASSOCIATION WHILE CALLING THE TRADE PACT AN HISTORIC ECONOMIC INITIATIVE THE PRESIDENT DEVOTED MOST OF HIS REMARKS TO HEALTH CARE WHICH WHITE HOUSE POLITICAL ADVISERS CONSIDER A FAR HIGHER PRIORITY BUT NAFTA SUPPORTERS IN THE ADMINISTRATION AND CONGRESS INSIST HE IS COMMITTED TO A MAJOR PUSH FOR THE AGREEMENT BEGINNING IN SEPTEMBER FOR THE MOMENT THE WHITE HOUSE BELIEVES A LOWKEY POSTURE WILL HELP GIVE WAVERING LAWMAKERS TIME TO RECOVER FROM THE EXHAUSTING BUDGET DEBATE COMPLETED JUST 10 DAYS AGO BY EMPHASIZING HEALTH CARE IN THE MEANTIME ADMINISTRATION OFFICIALS ADD THEY HOPE TO TAKE SOME OF THE STING OUT OF LABOR'S OPPOSITION TO THE AGREEMENT AND WHILE ROSS PEROT'S COMPLAINT OF A GIANT SUCKING SOUND CARRYING US JOBS ACROSS THE BORDER RESONATES AMONG AMERICANS UNEASY ABOUT THEIR ECONOMIC FUTURES BACKERS SAY PUBLIC OPINION ABOUT THE AGREEMENT ITSELF REMAINS SOFT ENOUGH TO SHAPE WITH A CAMPAIGN EMPHASIZING THE BENEFITS OF FREE TRADE FOR EVERY ONELINER THAT OPPONENTS HAVE WE HAVE TO COME UP WITH FIVE FACTS TO COUNTER SAYS REP JIM KOLBE OF ARIZONA A LEADING REPUBLICAN SUPPORTER OF THE AGREEMENT TO BOLSTER THE CASE MR KOLBE ADDS BACKERS HOPE TO MUSTER VERY SOLID SUPPORT FROM ALL FIVE LIVING FORMER PRESIDENTS AND THEIR FORMER TOP FOREIGN POLICY AIDES AND FROM BUSINESS LEADERS WHAT ISN'T CLEAR THOUGH IS WHETHER THAT WOULD BE ENOUGH TO GET THE AGREEMENT THROUGH THE HOUSE OVER THE OPPOSITION OF MR GEPHARDT ODDS FAVOR PASSAGE IN THE SENATE WHERE MR DOLE SAYS AS MANY AS 35 REPUBLICANS ARE EXPECTED TO BACK THE AGREEMENT HOUSE SPEAKER THOMAS FOLEY OF WASHINGTON FAVORS THE PACT AS WELL BUT THE ENERGETIC MR GEPHARDT WITH HIS STRONG TIES TO THE PARTY'S UNION BASE MAY NONETHELESS BE CAPABLE OF PREVENTING THE WHITE HOUSE FROM AMASSING THE NUMBER OF DEMOCRATIC VOTES IT NEEDS PERHAPS 100 OR MORE TO OBTAIN A MAJORITY THE LATEST ADMINISTRATION COUNT HAS 193 HOUSE MEMBERS VOTING YES OR LEANING IN THAT DIRECTION 163 MEMBERS VOTING NO OR LEANING THAT WAY AND 80 MEMBERS UNDECIDED IF DICK GEPHARDT ACTIVELY OPPOSES IT THE ODDS WOULD BE AGAINST US SAYS REP BILL RICHARDSON OF NEW MEXICO A DEMOCRATIC WHIP WHO SUPPORTS THE AGREEMENT WE'RE ENTERING A VERY DICEY UNCERTAIN PERIOD LIKE MR RICHARDSON ADMINISTRATION OFFICIALS INSIST THEY HAVEN'T ABANDONED HOPE OF WINNING MR GEPHARDT'S ACQUIESCENCE WHITE HOUSE AIDES HOPE THAT SEPARATE LEGISLATION OFFERED IN CONJUNCTION WITH THE AGREEMENT TO BOOST WORKER TRAINING AND STEP UP BORDER CLEANUP EFFORTS COULD SATISFY THE MISSOURI DEMOCRAT'S CONCERNS IT WON'T BE EASY MR GEPHARDT WANTS NAFTA TO COVER ENFORCEMENT OF COLLECTIVE BARGAINING AND RIGHTTOSTRIKE LAWS WHICH RAISE NATIONAL SOVEREIGNTY ISSUES IN MEXICO HE ALSO WANTS A STRONGER MEXICAN COMMITMENT TO LINK INCREASES IN AVERAGE WAGES WITH PRODUCTIVITY UNDER ONE SCENARIO LAID OUT BY THE ADMINISTRATION THE IMPLEMENTING LEGISLATION COULD INCLUDE LANGUAGE THAT SAYS THE US COULD PULL OUT OF NAFTA IF MEXICO DOESN'T SHOW SIGNIFICANT IMPROVEMENT IN THAT AREA ANOTHER WAY OF SWEETENING THE POT FOR DEMOCRATIC LAWMAKERS WOULD BE REVIVING IN SOME FORM A JOBS BILL TO TAKE THE PLACE OF THE SHORTTERM STIMULUS PACKAGE THAT FELL TO A GOP FILIBUSTER EARLIER THIS YEAR LIKE THIS SUMMER'S BUDGET DEBATE THE LOOMING TRADE FIGHT THREATENS TO WIDEN THE DIVIDE BETWEEN THE RIVAL DEMOCRATIC FACTIONS THAT MR CLINTON HASN'T BEEN ABLE TO BRIDGE THE QUESTION OF WHETHER WE EXPAND TRADE OR RESTRICT IT IS A CRITICAL FAULT LINE BETWEEN NEW DEMOCRATS AND OLD DEMOCRATS SAYS AL FROM PRESIDENT OF THE DEMOCRATIC LEADERSHIP COUNCIL AS DLC CHAIRMAN IN 1991 MR CLINTON BEGAN DEFINING HIMSELF AS A DIFFERENT KIND OF DEMOCRAT BY EMPHASIZING FREE TRADE IN OPPOSITION TO PREVAILING PROTECTIONIST SENTIMENTS IN HIS PARTY AN IMAGE THAT WAS CRITICAL TO HIS CAMPAIGN LAST YEAR BUT IN THE BUDGET DEBATE IT WAS DEMOCRATIC TRADITIONALISTS WHO STOOD SOLIDLY BEHIND THE NEW PRESIDENT WHILE MANY DLC MEMBERS IN CONGRESS ABANDONED HIM THE FAILURE OF NAFTA MR KOLBE ARGUES WOULD BE JUST AS COSTLY A FOREIGN POLICY DEFEAT AS THE COLLAPSE OF MR CLINTON'S ECONOMIC PACKAGE WOULD HAVE BEEN DOMESTICALLY BUT IN THE MEANTIME SAYS MITCH DANIELS FORMER POLITICAL DIRECTOR IN RONALD REAGAN'S WHITE HOUSE REPUBLICANS CAN SIT BACK AND ENJOY THE DIFFICULTY THAT THE ISSUE CAUSES CLINTON AND THE DEMOCRATS MANY REPUBLICANS ARE DOING MORE THAN SITTING BACK MR DOLE NOW TOURING NEW HAMPSHIRE TO EXPLORE THE POSSIBILITY OF RUNNING AGAINST MR CLINTON IN 1996 PLANS TO LEAD A GOP DELEGATION TO MEXICO CITY TO HIGHLIGHT THE ISSUE LATER THIS MONTH SOME ANALYSTS CAUTION THAT REPUBLICANS SHOULDN'T GET TOO COCKY REPUBLICAN POLITICAL THEORIST KEVIN PHILLIPS SAYS NAFTA COULD PREVENT REPUBLICANS FROM REGAINING THE ALLEGIANCE OF INDEPENDENT VOTERS WHO ABANDONED THE PARTY'S LONGRUNNING PRESIDENTIAL COALITION LAST YEAR ENSURING GEORGE BUSH'S DEFEAT LIKENING THE ISSUE TO THE EMOTIONAL PANAMA CANAL DEBATE THAT COMPLICATED LIFE FOR PRESIDENT JIMMY CARTER IN THE LATE 1970S MR PHILLIPS SAYS THE ISSUE OFFERS A BIG OPPORTUNITY FOR PEROT TO IDENTIFY HIMSELF WITH ECONOMIC NATIONALISM WHILE MR CLINTON AND THE GOP SIDE WITH PRONAFTA BUSINESS ELITES WITH AN EDGY ELECTORATE IT DOES RAISE THE LEVEL OF DISSATISFACTION WITH CONGRESS ACROSS THE BOARD AGREES REPUBLICAN POLLSTER NEIL NEWHOUSE BUT CONSIDERING HOW MANY OTHER HOTBUTTON ISSUES RECENTLY FAILED TO HAVE MAJOR ELECTORAL IMPACT THE DECISION TO ENTER THE PERSIAN GULF WAR IS A CONSPICUOUS EXAMPLE MR NEWHOUSE AND OTHER STRATEGISTS DOUBT THE OFTENABSTRACT TRADE DEBATE WILL CAUSE MANY LAWMAKERS ON EITHER SIDE TO LOSE THEIR SEATS IN 1994 JEFFREY H BIRNBAUM AND ASRA Q NOMANI CONTRIBUTED TO THIS ARTICLE DO YOU FAVOR OR OPPOSE THE NORTH AMERICAN FREE TRADE AGREEMENT WITH MEXICO AND CANADA 9308180111 930818 BUSINESS BRIEF CENCALL COMMUNICATIONS CORP PROCEEDS TOTAL 953 MILLION FROM INITIAL PUBLIC OFFERING CENCALL COMMUNICATIONS CORP SAID IT RECEIVED 953 MILLION IN PROCEEDS FROM ITS RECENTLY COMPLETED INITIAL PUBLIC OFFERING THE DENVER WIRELESS COMMUNICATIONS COMPANY SAID IT WILL USE THE PROCEEDS TO REPAY DEBT PARTLY TO FUND NETWORK EXPANSION AND IMPROVEMENT AND POSSIBLY TO FUND FUTURE ACQUISITIONS THE COMPANY SAID THE 54 MILLION SHARES SOLD WERE PRICED AT 19 A SHARE AND INCLUDED THE SALE OF 712500 SHARES BY UNDERWRITERS TO COVER OVERALLOTMENTS THE OFFERING WAS UNDERWRITTEN BY A GROUP LED BY MERRILL LYNCH & CO 9308180110 930818 LEISURE & ARTS THE GALLERY A GOLDEN SHOWCASE BY JUDY FAYARD LAUSANNE SWITZERLAND THE FIVESTORY 65 MILLION OLYMPIC MUSEUM DESIGNED BY ARCHITECTS PEDRO RAMIREZ VAZQUEZ OF MEXICO CITY AND JEANPIERRE CAHEN OF LAUSANNE IS BEAUTIFUL A RARE EXAMPLE OF A MODERN PUBLIC BUILDING THAT DOES NOT CALL ATTENTION TO ITSELF ITS 230FOOTLONG PROFILE IS DISCREETLY HIDDEN IN THE TERRACING WITH TWO FLOORS COMPLETELY UNDERGROUND AT NO POINT DOES MORE THAN ONE STORY RISE ABOVE GROUND LEVEL THE BOXY FACADE AND THE EIGHT RATHER GRANDIOSE GREEK COLUMNS THAT LINE THE ENTRANCE ARE OF WHITE MARBLE FROM THASOS A GIFT FROM THE GREEK GOVERNMENT SO PURE AND UNVEINED THAT IT MIGHT ALMOST BE MISTAKEN FOR WHITE ENAMEL THE AVOWED PURPOSE OF THE MUSEUM FIRST PROPOSED IN 1915 BY BARON PIERRE DE COUBERTIN THE FOUNDER OF THE MODERN OLYMPICS IS TO BRING TOGETHER IN ONE PLACE OLYMPIC DOCUMENTATION AND MEMORABILIA SCATTERED AROUND THE WORLD'S OLYMPIC VENUES AND TO PROMOTE THE IDEALS OF OLYMPISM THE UNION OF SPORT EDUCATION ART AND CULTURE TO PRODUCE THE HIGHEST HUMAN ACHIEVEMENT IT IS ALSO OF COURSE MEANT TO SERVE AS A SHOWCASE FOR THE INTERNATIONAL OLYMPIC COMMITTEE AND THE OLYMPIC GAMES IN GENERAL IN THAT IT SUCCEEDS SURPRISINGLY WELL IT CERTAINLY IS NOT JUST A HALL OF FAME COLLECTION OF ATHLETIC KITSCH ALTHOUGH IT DOES DISPLAY THE VENERABLE DISCUS THROWN BY GOLD MEDALIST ROBERT GARRETT IN 1896 AND THE RUNNING SHOES CARL LEWIS WORE IN LOS ANGELES IN 1984 BUT THERE ARE ALSO 15000 BOOKS IN THE MUSEUM'S LIBRARY 8000 HOURS OF TAPE AND FILM 240000 STILL PHOTOGRAPHS AND AN IMMENSE COLLECTION OF OLYMPIC MEDALS AND PHILATELY INCLUDING THE PERSONAL STAMP COLLECTION DONATED BY IOC PRESIDENT JUAN ANTONIO SAMARANCH THE THREE CENTRAL FLOORS ARE ABUZZ WITH PANORAMIC SCREEN PROJECTIONS INTERACTIVE VIDEO TERMINALS ALL IN A CHOICE OF FOUR LANGUAGES BACKGROUND MUSIC AND VISITORS PUNCHING UP VIDEO CONVERSATIONS WITH KATARINA WITT OR CHEERING AT A FILMED RECORD OF SOME MEMORABLE OLYMPIC FEAT THE PLACE IS FULL OF KIDS AND TEENAGERS AND THEY OBVIOUSLY LIKE IT A LOT THE VIDEOTHEQUE HAS COZY VIEWING BOOTHS THAT WILL EVENTUALLY OFFER ACCESS TO 1200 TAPES OF OLYMPIC PERFORMANCES SOME 100 ARE NOW AVAILABLE AND MORE ARE BEING PROGRAMMED INTO THE SYSTEM DAILY INCLUDING MARK SPITZ SWIMMING FOR HIS SEVENTH GOLD MEDAL AND NADIA COMANECI LEVITATING HER WAY TO STARDOM SOME OF THE OLDIES ARE EVEN MORE FUN FOR EXAMPLE THE WINTER GAMES AT CORTINA IN 1956 WHEN THE MEN'S DOWNHILL WAS HELD IN A BLIZZARD SKIER AFTER SKIER TUMBLED SPECTACULARLY OUT OF CONTROL INCLUDING THE AUSTRIAN ROGER STAUB WHO THEN GOT UP AND FINISHED WITH A BRONZE MEDAL TONI SAILER WON THE GOLD THAT YEAR IN A WIDEOPEN RACE THAT HAD NO GATES NO FLAGS LEATHER HELMETS FEW RULES AND A TRULY FREE STYLE THE BUILDING INTERIOR IS A PATTERN OF OVERLAPPING CIRCLES LIKE THE OLYMPIC RINGS WITH A SKYLIT CENTRAL RAMP SPIRALING UP TO THE SECOND FLOOR THE PERMANENT GALLERY ON THE MAIN FLOOR PROVIDES AN INTRODUCTION TO THE ORIGINAL GAMES BY WAY OF A REMARKABLE COLLECTION OF ANCIENT GREEK POTTERY AND SCULPTURE DEPICTING ATHLETES AND ATHLETIC GAMES AND A HANDFUL OF GREEK ARTIFACTS AMONG THE MOST TOUCHING ARE TWO DELICATE 2ND CENTURY BC LAUREL WREATHS IN HAMMERED GOLD UPSTAIRS TWO CIRCULAR GALLERIES TRACE THE PROGRESS OF THE MODERN SUMMER GAMES AND WINTER GAMES SET INTO CYCLORAMIC BACKDROPS OF FLASHING MULTISCREEN IMAGES ARE BITS AND PIECES OF OLYMPIC SPORT PARAPHERNALIA IN HISTORICAL PROGRESSION JAVELINS AND DISCUSES HAVE CHANGED LITTLE OVER THE YEARS BUT BIKES AND BOWS HAVE COME A LONG HIGHTECH WAY THE EARLY BOBSLEDS ARE INNOCENT AND TERRIFYING FRAGILE FRAMES OF WOOD AND WEBBING EARLY SKATES STRAPPED ONTO SOFT SHOES BY THICK LEATHER THONGS SIT ALONGSIDE THE MOLDED MOONBOOT OF TODAY MORE VIDEO TERMINALS HERE FOR THE STATISTICALLY CURIOUS ANY MEDAL WINNER IN ANY DISCIPLINE CAN BE FOUND SEARCHING BY NAME BY NATIONALITY OR BY SPORT OTHER TERMINALS WILL OFFER ACCESS TO THE MUSEUM'S COLLECTION OF PHOTOGRAPHS A TOUCH ON THE SCREEN WILL CALL UP A PHOTO ALBUM OF JESSE OWENS OR THE SPLENDID INFLIGHT ACROBATICS OF TENNIS HEROINE SUZANNE LENGLEN LACY UNDERTHINGS AND ALL THE ROOFTOP RESTAURANT WITH BUFFET SALAD BAR SANDWICHES AND FULL MEALS AT REASONABLE PRICES HAS AN OLYMPIAN VIEW OF LAKE GENEVA AND THE SAVOY MOUNTAINS IN FRANCE ON THE TERRACE AND SCATTERED THROUGHOUT THE MUSEUM AND THE GARDENS IS AN IMPRESSIVE COLLECTION OF SCULPTURE INCLUDING RODIN'S AMERICAN ATHLETE A SMALL TEMPORARY EXHIBIT CONTINUES UNTIL OCT 3 SHOWING ARTWORKS FROM EACH OF THE SIX CITIES VYING FOR THE SUMMER OLYMPICS OF 2000 THE BEIJING SECTION INCLUDES A PAIR OF SOLDIERS FROM THE TERRACOTTA ARMIES OF XIAN A HUGE BRONZE MASK WITH BUG EYES AND BATWING EARS C 1600 BC1100 BC AND A SENSATIONAL IMPERIAL BURIAL SUIT OF ARMOR COMPOSED OF SMALL JADE PLAQUES HELD TOGETHER WITH GOLDWIRE KNOTS A MIXED BAG OF PAINTINGS REPRESENT MANCHESTER VELAZQUEZ FRANCIS BACON LUCIEN FREUD BRASILIA SYDNEY AND BERLIN ERNST KIRSCHNER AND OTTO DIX THE MOST BEGUILING PIECES ARE FROM ISTANBUL AMONG THEM A LOVELY SMALL SECONDCENTURY MARBLE OF THE GOD DIONYSUS THE MUSEUM AND ITS SUMPTUOUS SITE RIGHT NEXT TO THE ULTRALUXURIOUS HOTEL BEAU RIVAGE HAS BEEN PAID FOR MOSTLY BY SPONSORS ROUGHLY HALF OF THEM JAPANESE FOR THIS THEY GET TO SEE THEIR NAMES CHISELED ON A MARBLE WALL BEHIND THE CENTRAL RAMP SOME HAVE FOUND SUCH SELFGLORIFICATION REPREHENSIBLE BUT THERE IS LITTLE QUESTION THAT CENTRALIZING THE HISTORICAL DOCUMENTATION OF THE OLYMPICS AND MAKING IT AVAILABLE TO SCHOLARS RESEARCHERS JOURNALISTS AND THE INTERESTED PUBLIC IS A GOOD THING WHETHER THAT REQUIRED SOME 28000 SQUARE YARDS OF PRIME LAKESIDE REAL ESTATE OWNED JOINTLY BY THE IOC AND THE CITY OF LAUSANNE IS OPEN TO DEBATE THE GARDENS AT LEAST FORMERLY PRIVATE AND CLOSED ARE NOW A PUBLIC PARK MS FAYARD IS A WRITER IN PARIS 9308180109 930818 HAFT'S DAUGHTER SUES HER FATHER AND BROTHER WASHINGTON DC THE HAFT FAMILY FEUD ESCALATED AS LINDA HAFT THE ONLY SIBLING WHO HAD REFUSED TO TAKE SIDES SUED HER FATHER AND YOUNGEST BROTHER MS HAFT SUED THE FAMILY PATRIARCH HERBERT HAFT AND HER BROTHER RONALD ALLEGING BREACH OF FIDUCIARY TRUST IN THEIR MANAGEMENT OF THE FAMILY REAL ESTATE COMPANIES MANY OF MS HAFT'S ALLEGATIONS ECHO THOSE MADE BY HER MOTHER GLORIA HAFT WHO FILED FOR DIVORCE LAST WEEK FROM HERBERT HAFT THE DAUGHTER 43 YEARS OLD WAS JOINED IN THIS LATEST SUIT BY BROTHER ROBERT HAFT 40 ROBERT HAFT WAS HEIR APPARENT TO HIS FATHER AT THE COMPANY'S PRIVATE AND PUBLIC COMPANIES BUT WAS OUSTED FROM HIS CORPORATE POSTS IN JUNE BY HIS FATHER ROBERT SUED HIS FATHER TO CLAIM MORE THAN 9 MILLION HE SAYS HE IS DUE FROM A LONGTERM EMPLOYMENT CONTRACT IN ADDITION TO A PORTFOLIO OF SHOPPING MALLS THE HAFT FAMILY OWNS CONTROLLING SHARES IN THREE PUBLIC COMPANIES DART GROUP CORP CROWN BOOKS CORP AND TRAK AUTO CORP THE ATTORNEY FOR HERBERT AND RONALD HAFT MICHAEL KLEIN DIDN'T RESPOND TO A PHONE CALL SEEKING COMMENT 9308180108 930818 DIVIDEND NEWS CORESTATES FINANCIAL CORP CORESTATES FINANCIAL CORP PHILADELPHIA DECLARED A 2FOR1 STOCK SPLIT INCREASED ITS QUARTERLY DIVIDEND 11 AND ANNOUNCED A SHAREREPURCHASE PROGRAM THE BANK HOLDING COMPANY SAID THE SPLIT IS PAYABLE OCT 15 TO STOCK OF RECORD SEPT 15 THE QUARTERLY DIVIDEND WILL INCREASE SIX CENTS TO 60 CENTS A SHARE ON A PRESPLIT BASIS PAYABLE OCT 1 TO STOCK OF RECORD SEPT 7 THE REPURCHASE PLAN AUTHORIZES MANAGEMENT TO BUY BACK AS MANY AS 2 OF THE COMPANY'S SHARES OUTSTANDING ANNUALLY CORESTATES CURRENTLY HAS ABOUT 587 MILLION SHARES OUTSTANDING IN OVERTHECOUNTER TRADING CORESTATES CLOSED AT 54625 UP 875 CENTS 9308180107 930818 BUSINESS BRIEF ALLSTATE CORP REFUND OF 110 MILLION IS SET IN SETTLEMENT IN CALIFORNIA ALLSTATE CORP NORTHBROOK ILL SAID IT WILL REFUND 110 MILLION TO POLICYHOLDERS IN A SETTLEMENT WITH CALIFORNIA INSURANCE REGULATORS AS PART OF A REBATE PLAN APPROVED BY VOTERS IN 1988 ALLSTATE SAID THE SETTLEMENT WON'T HAVE ANY MATERIAL IMPACT ON RESULTS BECAUSE THE COMPANY HAD TAKEN RESERVES FOR ALMOST ALL OF THE SETTLEMENT BEFORE 1993 THE AGREEMENT ARISES FROM PROPOSITION 103 THE 1988 PREMIUMROLLBACK INITIATIVE WHICH INSURERS HAVE FOUGHT IN THE COURTS UNDER THE TERMS OF THE SETTLEMENT 29 MILLION POLICYHOLDERS WILL GET REBATE CHECKS OF 5 OF THEIR PREMIUMS THE AMOUNTS PER POLICYHOLDER AVERAGE 66 PER CAR POLICY 26 PER HOMEOWNER POLICY AND 207 PER COMMERCIAL POLICY THE SETTLEMENT APPLIES TO ALLSTATE CUSTOMERS WHO HAD POLICIES BETWEEN NOV 8 1988 AND NOV 7 1989 ALLSTATE IS THE SECONDLARGEST PROPERTY INSURER AND THIRDLARGEST CAR INSURER IN CALIFORNIA 9308180106 930818 STANDEX SAYS PROFIT FOR FISCAL 4TH PERIOD INCREASED BY ABOUT 6 BOSTON STANDEX INTERNATIONAL CORP EXPECTS TO REPORT THAT NET INCOME FOR THE FISCAL FOURTH QUARTER ENDED JUNE 30 ROSE ABOUT 6 TO 66 MILLION OR 42 CENTS A SHARE SAID THOMAS L KING CHAIRMAN AND CHIEF EXECUTIVE STANDEX OWNS A HOST OF NICHE COMPANIES MANY INVOLVING INDUSTRIAL PRODUCTS THEIR BUSINESSES RANGE FROM MAKING CHRISTMAS TREE STANDS TO SELLING RELIGIOUS BOOKS TO PRODUCING HYDRAULIC CYLINDERS FOR DUMP TRUCKS THE EXPECTED FOURTHPERIOD RESULTS REFLECT A 4 SALES INCREASE TO ABOUT 125 MILLION AND REDUCED SHARES OUTSTANDING THE COMPANY PLANS TO REPORT ITS RESULTS TOMORROW IN THE YEAREARLIER FOURTH QUARTER STANDEX REPORTED NET INCOME OF 62 MILLION OR 36 CENTS A SHARE ON SALES OF 1196 MILLION AVERAGE SHARES DROPPED TO 16 MILLION FROM 171 MILLION DUE TO A CONTINUING STOCK REPURCHASE PLAN PERSHARE FIGURES ARE RESTATED TO REFLECT A 2FOR1 STOCK SPLIT IN APRIL ON BALANCE BUSINESS IN THE US IS FAIRLY GOOD ALTHOUGH EUROPE IS VERY MUCH IN A RECESSION MR KING SAID STANDEX IS SO DIVERSIFIED THAT IT'S ALMOST INCONCEIVABLE THAT THE ECONOMY COULD GO ONE WAY AND WE COULD GO ANOTHER HE SAID BUT HE SAID HE THINKS THE US ECONOMY IS HEALTHIER THAN GENERALLY RECOGNIZED ABOUT 20 OF STANDEX'S BUSINESS COMES FROM OVERSEAS HE INDICATED THAT A DIVIDEND INCREASE IS LIKELY AFTER THE ANNUAL MEETING IN OCTOBER HE SAID THAT BASED ON ITS GOAL OF PAYING OUT ABOUT ONETHIRD OF EARNINGS STANDEX WILL BE ABLE TO INCREASE THE PAYOUT TO 13 CENTS QUARTERLY FROM 12 CENTS QUARTERLY STANDEX INCREASED ITS DIVIDEND TWICE LAST YEAR FOR ALL OF FISCAL 1993 STANDEX EXPECTS TO REPORT THAT NET INCOME WAS A RECORD 24 MILLION OR 147 A SHARE UP 9 FROM 219 MILLION OR 123 A SHARE SALES ROSE 6 TO A RECORD 506 MILLION FROM 477 MILLION IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE STANDEX SHARES WERE QUOTED AT 20625 UNCHANGED 9308180105 930818 ABREAST OF THE MARKET INDUSTRIAL STOCKS HIT NEW HIGH AS DRUG TOBACCO ISSUES RALLY BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS SNAPPED UP SOME DOWNTRODDEN DRUG AND TOBACCO STOCKS HELPING STEER THE DOW JONES INDUSTRIAL AVERAGE TO A NEW HIGH THE AVERAGE CLIMBED 783 POINTS TO 358698 EDGING PAST ITS OLD RECORD OF 358335 SET LAST WEDNESDAY STANDARD & POOR'S 500STOCK INDEX MOVED UP 075 POINT TO 45313 MOVING WITHIN STRIKING DISTANCE OF AN ALLTIME HIGH AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 071 TO 25127 WHILE THE AMERICAN STOCK EXCHANGE'S MARKET VALUE INDEX ROSE 133 TO 44266 ITS SECOND CONSECUTIVE RECORD GAIL DUDACK STOCK MARKET STRATEGIST AT SG WARBURG SAID THAT THERE STILL APPEARS TO BE A TREMENDOUS AMOUNT OF MONEY THAT COULD FLOW INTO STOCKS THE MARKET HAS HAD A NUMBER OF STRONG CLOSES AFTER WEAK OR IFFY OPENINGS AND THAT'S A CONTINUING SIGN OF LIQUIDITY ON THE SIDELINES SAID MS DUDACK INDEED JEFFREY SHAMES CHIEF EQUITY OFFICER AT MASSACHUSETTS FINANCIAL SERVICES A BOSTONBASED MUTUAL FUND SAID THAT MONEY HAS BEEN FLOODING INTO THE FIRM'S EQUITY FUNDS THIS MONTH AT ALMOST THE SAME PACE AS IN APRIL SALES OF EQUITY FUNDS PEAKED IN THE SPRING AS INVESTORS RUSHED TO TUCK MONEY AWAY IN INDIVIDUAL RETIREMENT ACCOUNTS BEFORE THE APRIL 15 TAX DEADLINE USUALLY YOU HAVE A VERY SLOW SUMMER BUT THIS YEAR THERE HAS BEEN NO SUMMER SLOWDOWN MR SHAMES ADDED ONE OF THE AREAS IN WHICH INVESTORS WERE DEPLOYING THEIR MONEY YESTERDAY WAS IN DEEPLY DEPRESSED DRUG STOCKS MERCK JUMPED 1 3/8 TO 30 7/8 BRISTOLMYERS SQUIBB ADDED 1 TO 54 5/8 PFIZER GAINED 1 1/4 TO 60 1/2 AND SCHERINGPLOUGH WAS UP 1 3/8 TO 61 DAVID SAKS A DRUG ANALYST AT GRUNTAL SAID THAT INVESTORS WERE HEARTENED THAT PRESIDENT CLINTON'S HEALTHCARE PLAN WILL BE AN EMPLOYERBASED PROGRAM WHAT MR CLINTON SAID IN TULSA SUGGESTS THAT THERE ISN'T GOING TO BE ONEROUS GOVERNMENTAL LEGISLATION SAID MR SAKS OTHER ANALYSTS SAID THAT INVESTORS WERE RELIEVED TO LEARN THAT THE PLAN WOULD BE PHASED IN OVER FIVE TO SEVEN YEARS MEANWHILE TOBACCO STOCKS ANOTHER OUTOFFAVOR GROUP ALSO ATTRACTED SOME INVESTOR INTEREST YESTERDAY PHILIP MORRIS ROSE 1 7/8 TO 48 3/8 AFTER OPPENHEIMER'S STOCK STRATEGIST MICHAEL METZ RECOMMENDED THE STOCK IN THIS NEWSPAPER YESTERDAY RJR NABISCO EDGED UP 1/4 TO 5 AND LOEWS SURGED 3 3/8 TO 94 7/8 THE GAINS CAME EVEN THOUGH THE WHITE HOUSE SAID IT WAS CONSIDERING INCREASING TAXES ON CIGARETTES AND LIQUOR TO HELP PAY FOR LONGTERM CARE FOR THE ELDERLY TRANSPORTATION STOCKS SOARED BUOYED BY STABLE OIL PRICES AMR THE PARENT OF AMERICAN AIRLINES RALLIED 1 3/4 TO 67 UAL THE PARENT OF UNITED AIRLINES ROCKETED 2 7/8 TO 147 1/4 AND DELTA AIR LINES CLIMBED 1 1/2 TO 53 THE GAINS HELPED PUSH THE DOW JONES TRANSPORTATION AVERAGE 2586 POINTS HIGHER TO 164224 HEWLETTPACKARD TUMBLED 1 TO 74 PARTLY RECOVERING FROM A STEEP SELLOFF EARLY IN THE DAY THE COMPUTER MAKER REPORTED THIRDQUARTER PROFIT GREW TO 106 A SHARE FROM 75 CENTS A SHARE A YEAR AGO BUT THE GAINS FELL SHORT OF WALL STREET'S EXPECTATIONS ATLANTIC RICHFIELD SLID 1 5/8 TO 114 7/8 OPPENHEIMER ANALYST PAUL TING LOWERED HIS THIRDQUARTER EARNINGS ESTIMATE TO 115 A SHARE FROM 135 AFTER MEETING WITH COMPANY OFFICIALS YESTERDAY THE GLOOMIER PROFIT OUTLOOK IS BASED ON DEPRESSED OIL AND GAS PRICES AND A DROPOFF IN PRODUCTION CABLETRON SYSTEMS SKIDDED 2 1/4 TO 110 1/2 THE COMPUTER NETWORK EQUIPMENT MAKER SAID MONDAY THAT IT HAD FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF TWO MILLION SHARES INVESTORS FROWNED ON THE PLANNED SALE BECAUSE COMPANY INSIDERS ARE OFFERING ALL THE STOCK DAYTON HUDSON SLUMPED 1 1/2 TO 67 1/4 THE RETAILER SAID THAT SECONDQUARTER PROFIT PLUNGED 45 TO 28 CENTS A SHARE FROM 51 CENTS A SHARE A YEAR AGO THE LATEST QUARTER'S PROFIT WAS BOOSTED BY A SPECIAL SEVENCENTASHARE GAIN THE COMPANY ALSO TOLD INVESTORS THAT IT EXPECTS TO TAKE A CHARGE OF FIVE CENTS A SHARE IN THE THIRD QUARTER TO REFLECT A TAX LAW CHANGE JC PENNEY GAINED 1/2 TO 45 3/4 THE RETAILER REPORTED THAT SECONDQUARTER EARNINGS CLIMBED TO 43 CENTS A SHARE FROM 31 CENTS A SHARE A YEAR AGO TURNER BROADCASTING'S CLASS A SHARES EDGED UP 1/8 TO 23 5/8 ON THE AMEX THIS NEWSPAPER REPORTED YESTERDAY THAT TIME WARNER HAS GRUDGINGLY DECIDED TO DROP ITS OPPOSITION TO TED TURNER'S PROPOSAL TO BUY NEW LINE CINEMA AND CASTLE ROCK ENTERTAINMENT 9308180104 930818 POLITICS & POLICY BOEING WINS PRIME SPACESTATION JOB BUT RUSSIANS MAY GET A LEADING ROLE BY ASRA Q NOMANI AND JEFF COLE STAFF REPORTERS OF THE WALL STREET JOURNAL BOEING CO WAS NAMED THE PRIME CONTRACTOR FOR THE FEDERAL GOVERNMENT'S 22 BILLION REDESIGNED SPACE STATION EVEN AS THE CLINTON ADMINISTRATION IS CONSIDERING WHETHER TO GIVE THE RUSSIANS A KEY ROLE IN THE PROJECT TO SAVE MONEY US OFFICIALS SAID THEY ARE WEIGHING THE RUSSIAN OPTION BECAUSE THE CURRENT PLAN IS EXPECTED TO FACE A TOUGH BUDGET BATTLE WHEN IT GOES BEFORE THE SENATE THIS FALL INVITING RUSSIAN INVOLVEMENT COULD MEAN A SMALLER AND LESSLUCRATIVE ROLE FOR SEATTLEBASED BOEING STILL YESTERDAY'S DECISION BY THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION ENDS A FIERCE DOMESTIC BATTLE FOR THE BUSINESS AND SHOULD HELP BOEING AMID POSTCOLD WAR DEFENSE CUTBACKS IN RECENT WEEKS SEVERAL RIVALS HAD BEEN RUMORED TO BE LEADING CONTENDERS FOR THE PRIME CONTRACTOR ROLE INCLUDING MCDONNELL DOUGLAS CORP ROCKWELL INTERNATIONAL CORP AND GRUMMAN CORP NASA ALSO SELECTED JOHNSON SPACE CENTER IN HOUSTON TO BE THE HEADQUARTERS FOR THE SPACE STATION PROJECT BEATING OUT CENTERS IN HUNTSVILLE ALA GREENBELT MD AND CLEVELAND THE PROGRAM HAS BEEN COORDINATED IN RESTON VA AND THE DECISION WILL LIKELY HELP THE HOUSTONAREA ECONOMY THE ACTION COMES AMID CRITICISM THAT MONEY WAS BEING WASTED BECAUSE THE PROJECT WAS SPREAD OUT OVER SEVERAL LOCATIONS AFTER TAKING OFFICE PRESIDENT CLINTON ORDERED NASA TO COME UP WITH A CHEAPER VERSION THAN THE 313 BILLION PROJECT THE GOVERNMENT WAS TRYING TO BUILD THROUGH THE END OF FISCAL 1993 THE US HAD SPENT 112 BILLION ON THE PROJECT SINCE ITS START IN 1984 IN JUNE A REDESIGN TEAM RECOMMENDED THAT NASA CREATE ONE MANAGEMENT TEAM AND CONSOLIDATE CONTRACTS UNDER ONE CONTRACTOR THE TEAM ALSO SUGGESTED A SIMPLER SPACE STATION SCHEME AT BOEING MANAGERS HAILED NASA'S DECISION AS A SIGNAL THAT THE COMPANY HAS PERFORMED WELL IN DEVELOPING LIVING AND LABORATORY QUARTERS FOR THE PROJECT AND AS AN AFFIRMATION OF ITS ABILITY TO INTEGRATE SUCH COMPLEX PROJECTS BOEING WHICH EMPLOYS 1800 WORKERS ON THE PROJECT EXPECTS TO ADD SEVERAL HUNDRED MORE JOBS AS PRIME CONTRACTOR JOHN WINCH VICE PRESIDENT OF SPACESTATION PROGRAMS FOR BOEING AT ITS HUNTSVILLE OPERATION SAID THE COMPANY'S REVENUES FROM THE STATION WHICH TOTAL ABOUT 400 MILLION FOR THIS YEAR ARE LIKELY TO INCREASE BUT THE SIZE OF THE INCREASE WON'T BE CLEAR UNTIL THE REDESIGN IS COMPLETED NASA OFFICIALS HAVE BEEN WEIGHING MORE CHANGES TO THE PLANNED OUTPOST IN SPACE ONE SCENARIO WOULD INVOLVE INCLUDING THE RUSSIAN SPACESTATION PROJECT CALLED MIR THE US PLAN ALREADY INCLUDES PARTICIPATION BY EUROPE AND JAPAN UNDER THE POSSIBILITY BEING CONSIDERED THE SPACE STATION WOULD INCORPORATE MIR MODULES IN WHICH ASTRONAUTS COULD LIVE THAT COULD REDUCE SOME MODULE PRODUCTION BY BOEING BUT IT WOULD ALSO PROVIDE THE CLINTON ADMINISTRATION WITH THE COSTSAVINGS NECESSARY TO GET FUNDING FOR THE PROJECT CLEARED BY THE SENATE THEY SEEM TO BE GOING FOR THIS RUSSIAN OPTION SAID JOHN PIKE DIRECTOR OF SPACE POLICY AT THE FEDERATION OF AMERICAN SCIENTISTS A WASHINGTON POLICYRESEARCH GROUP I DON'T THINK THEY HAVE ANY CHOICE THE BOTTOM LINE IS THAT THE ONLY WAY THEY ARE GOING TO COME UP WITH A STATION THAT MAKES SENSE AND IS AFFORDABLE IS IF THE RUSSIANS ARE BROUGHT IN AS PARTNERS RATHER THAN SPECTATORS THE DISCUSSIONS HAVE TAKEN OFF BECAUSE THE WHITE HOUSE DIRECTED NASA TO FIND WAYS TO INCREASE SPACE EFFORTS WITH THE RUSSIANS MARK HESS A NASA SPOKESMAN SAID AGENCY OFFICIALS AND OTHER ADMINISTRATION OFFICIALS ARE NOW IN RUSSIA MEETING WITH THEIR COUNTERPARTS TO DISCUSS THE POSSIBILITIES THE TEAM IS SCHEDULED TO GIVE THE WHITE HOUSE ITS RECOMMENDATIONS BY AUG 31 MR HESS SAID NASA WILL MOST LIKELY PROVIDE THE WHITE HOUSE WITH A LAUNDRY LIST OF SUGGESTIONS BUT WOULDN'T ELABORATE BOEING'S MR WINCH SAID THE OPTION OF MERGING PROJECTS WITH THE RUSSIANS COULD BE A SIGNIFICANT PLUS BUT STRESSED THAT IT WOULD HAVE TO MAKE SENSE TECHNICALLY AND FINANCIALLY HE SAID IT'S UNLIKELY THAT INVOLVING RUSSIA IN THE PROJECT WOULD REDUCE BOEING'S ROLE OF BUILDING BOTH LIVING AND LABORATORY AREAS THOUGH HE CONCEDED IT COULD SAVE MONEY 9308180103 930818 BUSINESS BRIEF AMVESTORS FINANCIAL CORP MARKET CONDITIONS ARE CITED IN POSTPONEMENT OF OFFERING AMVESTORS FINANCIAL CORP SAID IT POSTPONED ITS PROPOSED PUBLIC OFFERING OF FOUR MILLION COMMON SHARES DUE TO LESSTHANFAVORABLE MARKET CONDITIONS RALPH W LASTER JR THE INSURANCE HOLDING COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE SAID THAT WHEN THE OFFERING WAS BEING PRICED LAST WEEK IT BROUGHT A BID OF ONLY 950 A SHARE WE JUST WEREN'T HAPPY WITH THE PRICE HE SAID AMVESTORS SHARES HAVE TRADED THIS YEAR AS HIGH AS 16875 APIECE AND AS LOW AS 9375 THE CLOSING PRICE YESTERDAY IN COMPOSITE OVERTHECOUNTER TRADING WAS 11 A SHARE UP 375 CENTS THE TOPEKA KAN COMPANY FILED ITS REGISTRATION STATEMENT IN JUNE WITH THE SECURITIES AND EXCHANGE COMMISSION AT THE TIME IT SAID IT PLANNED TO USE THE PROCEEDS TO REPAY ALL BANK DEBT AND FOR OTHER CORPORATE PURPOSES MR LASTER SAID THE COMPANY WILL RECONSIDER AN OFFERING AFTER LABOR DAY 9308180102 930818 ECONOMY US GASOLINE STOCKS FALL AT SHARPLY SLOWER PACE HOUSTON US GASOLINE INVENTORIES STILL ARE FALLING BUT NOT AT A RATE FAST ENOUGH TO LIFT WORLD OIL PRICES AGAIN THE AMERICAN PETROLEUM INSTITUTE'S CLOSELYWATCHED WEEKLY REPORT ON US OIL STATISTICS RELEASED YESTERDAY AFTER THE PETROLEUM FUTURES MARKET HAD CLOSED SHOWED THAT GASOLINE INVENTORIES FELL ALMOST 13 MILLION BARRELS LAST WEEK THAT FOLLOWED THE PRIOR WEEK'S BIG DECLINE OF 66 MILLION BARRELS IN GASOLINE INVENTORIES WHICH HAD TRIGGERED A SURPRISING SURGE OF MORE THAN FOUR CENTS A GALLON IN FUTURES PRICES FOR THE FUEL AND HAD HELPED LIFT OIL PRICES WORLDWIDE AT LEAST BRIEFLY BUT THE LATEST WEEKLY DROP IN INVENTORIES IS LESS THAN ANTICIPATED ACCORDING TO A SURVEY OF OIL ANALYSTS BY THE DOW JONES INTERNATIONAL PETROLEUM REPORT YESTERDAY BEFORE THE API FIGURES WERE RELEASED US GASOLINE STOCKS HAD BEEN EXPECTED TO FALL 23 MILLION BARRELS AS A RESULT US GASOLINE PRICES ARE LIKELY TO REMAIN FLAT IN THE DAYS AHEAD OFFERING LITTLE FURTHER SUPPORT TO SLUGGISH WORLD PETROLEUM MARKETS TRADERS SAID 9308180101 930818 WHAT'S NEWS BUSINESS AND FINANCE STOCK PRICES CLIMBED TO RECORD LEVELS AS LONGBATTERED CONSUMERGROWTH STOCKS MOVED HIGHER THE DOW JONES INDUSTRIAL ROSE 783 POINTS TO A RECORD 358698 THE NASDAQ COMPOSITE INDEX ROSE 412 TO 73101 A SECOND CONSECUTIVE HIGH BOND PRICES SLIPPED AND THE DOLLAR WAS MIXED AT&T'S PLANNED PURCHASE OF MCCAW CELLULAR IS MEANT TO KICKSTART AT&T'S GROWTH AND OFFER NEW SERVICES AT&T'S COMMUNICATIONS CHIEF SAID ANALYSTS SAY AT&T COULD OFFER ATTRACTIVE LONGDISTANCE PRICING DEALS WITH MCCAW'S SERVICE AND POSSIBLY A PRICE CUT ON AT&T CELLULAR PHONES ANALYSTS HAILED AT&T'S 126 BILLION PLAN TO BUY MCCAW BUT A FEW INVESTORS REMAIN SKEPTICAL CAUTIONING THAT AT&T'S 789 BILLION ACQUISITION OF NCR IN 1991 IS SHOWING DECLINING PROFITS IN A WEAK COMPUTER MARKET FORD HAS MOUNTED A CAMPAIGN TO PASS RIVAL GENERAL MOTORS IN US TRUCK SALES BY 1995 VYING FOR DOMINANCE IN THE HIGHPROFIT PICKUP MINIVAN AND SPORT UTILITY MARKETS SEPARATELY FORD SUGGESTED DETROIT COULD SEEK ANTIDUMPING ACTIONS IF JAPANESE AUTO MAKERS RESTRAIN PRICE INCREASES TURNER BROADCASTING'S BOARD APPROVED THE ACQUISITIONS OF NEW LINE CINEMA FOR ABOUT 500 MILLION IN NEW STOCK AND CASTLE ROCK ENTERTAINMENT FOR MORE THAN 100 MILLION IN CASH HOUSING STARTS FELL 27 LAST MONTH FOLLOWING A REVISED 02 JUNE DROP AS LOW INTEREST RATES FAILED TO OVERCOME A PERSISTENT RELUCTANCE IN CONSUMERS AND AN AILING CALIFORNIA ECONOMY HEWLETTPACKARD'S PROFIT ROSE 44 IN THE FISCAL THIRD QUARTER BUT ORDER GROWTH IN SOME BIG OVERSEAS MARKETS SLOWED SHARPLY AND EARNINGS DIDN'T MEET WALL STREET EXPECTATIONS HP ALSO REPORTED A SHARP RISE IN INVENTORIES AND AN INCREASE IN SELLING COSTS THE COMPANY'S STOCK FELL 125 TO 74 DELL COMPUTER POSTED A BIGGERTHANEXPECTED SECONDQUARTER LOSS AND BACKED AWAY FROM PROJECTIONS THAT ITS BUSINESS WILL REBOUND BY YEAR'S END TELECOMMUNICATIONS SAID IT WILL FAIL TO MEET THE OCT 6 DEADLINE FOR NEGOTIATING FEES WITH TV STATIONS AND THAT THE STANDOFF COULD CONTINUE WELL INTO NEXT YEAR AS THE CABLE GIANT STANDS FIRM IN ITS REFUSAL TO PAY PROGRAMMING FEES UNDER A NEW LAW EQUITABLE PLANS TO TAKE PUBLIC ITS DONALDSON LUFKIN & JENRETTE INVESTMENT BANK SOMETIME NEXT YEAR BUT WILL SELL INVESTORS LESS THAN 20 COOPERS & LYBRAND SAID 160 PARTNERS HAVE BEEN ASKED TO LEAVE OR WILL TAKE EARLY RETIREMENT BUT COOPERS PLANS TO HIRE OR PROMOTE 130 NEW PARTNERS SO ITS PARTNERSHIP TOTAL WILL BE REDUCED BY ONLY ABOUT 30 PEOPLE HUGHES AIRCRAFT WON A LONGRUNNING PATENT BATTLE WITH NASA AND THE PENTAGON OVER A SATELLITECONTROL SYSTEM THE COURT RULING COULD BRING A WINDFALL TO THE GENERAL MOTORS UNIT SOFTKEY SOFTWARE PLANS TO ACQUIRE SPINNAKER SOFTWARE AND WORDSTAR INTERNATIONAL IN A NEW SIGN OF CONSOLIDATION IN THE SOFTWARE INDUSTRY BRITISH GAS SHOULD DIVEST ITSELF OF ITS GAS TRADING BUSINESS BY 1997 A BRITISH COMMISSION RECOMMENDED DAYTON HUDSON'S PROFIT SLID 43 IN THE SECOND QUARTER WHILE JC PENNEY'S EARNINGS INCREASED 40 DAYTON SAID WEAKERTHANEXPECTED SALES IN ITS MODERATE AND UPSCALE DEPARTMENT STORE DIVISIONS HURT EARNINGS JC PENNEY CITED HIGHER CATALOG SALES AND COSTCUTTING FOR ITS RECORD PROFIT CLAYTON HOMES SAID TWO OUTSIDE DIRECTORS RESIGNED AFTER A DISPUTE OVER HOW THE BOARD SHOULD HANDLE A TENNESSEE STATE PROBE OF THE HOME BUILDER'S FAILURE TO PAY SOME STATE SALES TAXES MERCANTILE BANCORP PLANS TO BUY UNITED POSTAL BANCORP IN A STOCK SWAP VALUED AT 1772 MILLION UNITED POSTAL STOCK ROSE 350 OR 15 TO 2675 BONDS LEHMAN BROTHERS TREASURY INDEX 545400 OFF 1477 COMMODITIES OIL 1792 A BARREL UP SIX CENTS DOW JONES FUTURES INDEX 12518 OFF 038 SPOT INDEX 12380 UP 014 DOLLAR 10110 YEN OFF 045 16931 MARKS UP 00061 9308180100 930818 BUSINESS BRIEF ROGERS COMMUNICATIONS INC DEBTHOLDERS EXCHANGE NOTES FOR CLASS B NONVOTING STOCK ROGERS COMMUNICATIONS INC SAID IT ISSUED 143 MILLION NEW CLASS B NONVOTING SHARES REPRESENTING ABOUT 7 OF TOTAL CLASS B SHARES OUTSTANDING IN EXCHANGE FOR HOLDERS' REDEEMING THE COMPANY'S LIQUID YIELD OPTION NOTES OF 2011 THE TORONTO TELECOMMUNICATIONS CONCERN ANNOUNCED THE EARLY REDEMPTION OF THE NOTES IN JUNE FOR 1607 MILLION IT SAID 999 OF THE NOTES' HOLDERS ACCEPTED NEW SHARES IN THE COMPANY RATHER THAN A CASH PAYMENT ROGERS SAID IT PAID 172000 TO REDEEM THE REST OF THE NOTES THE NOTES HAD A FACE VALUE OF 7188 MILLION IN TRADING ON THE TORONTO STOCK EXCHANGE YESTERDAY ROGERS'S CLASS B SHARES CLOSED AT 21 CANADIAN DOLLARS US1597 UP 375 CANADIAN CENTS THE COMPANY HAD ABOUT 2093 MILLION CLASS B SHARES OUTSTANDING BEFORE THE REDEMPTION 9308180099 930818 DE BEERS GROUP SAYS ITS DIAMOND ACCOUNT DECLINED 16 IN HALF SPECIAL TO THE WALL STREET JOURNAL JOHANNESBURG SOUTH AFRICA THE WORLD'S LARGEST DIAMOND PRODUCER THE COMBINED OPERATIONS OF SWISSBASED DE BEERS CENTENARY AG AND SOUTH AFRICA'S DE BEERS CONSOLIDATED MINES LTD SAID ITS DIAMOND ACCOUNT WAS DOWN 16 TO 373 MILLION FOR THE SIX MONTHS ENDED JUNE 30 FROM 379 MILLION A YEAR EARLIER THE GROUP ALSO SAID NET INCOME GREW 86 TO 353 MILLION IN THE FIRST HALF FROM 325 MILLION A YEAR EARLIER DE BEERS CHAIRMAN JULIAN OGILVIE THOMPSON SAID A 42 INCREASE IN THE DE BEERS DIAMOND ACCOUNT WAS OFFSET BY A 73 DECLINE IN THE CENTENARY ACCOUNT HE ATTRIBUTED THE HIGHER DE BEERS ACCOUNT TO DIAMOND FLOWS FROM THE GROUP'S NEW VENETIA MINE AND COST CUTTING AT SOUTH AFRICAN MINES WHERE LABOR WAS REDUCED BY 30 OR ABOUT 3000 JOBS THE CENTENARY DIAMOND ACCOUNT DECLINE WAS DUE TO MINES IN BOTSWANA FAILING TO SCALE DOWN PRODUCTION TO CONFORM TO THE CENTRAL SELLING ORGANIZATION'S LOWER QUOTAS MR OGILVIE THOMPSON SAID AS A RESULT PRODUCTION COSTS FROM THOSE OPERATIONS REMAINED THE SAME BUT THE AMOUNT OF DIAMONDS SOLD WAS LOWER THE CSO'S ROUGHDIAMOND SALES INCREASED 42 TO 254 BILLION IN THE FIRST HALF 56 HIGHER THAN THE SECOND HALF OF 1992 MR OGILVIE THOMPSON ATTRIBUTED THE HIGHER SALES TO UNUSUAL CIRCUMSTANCES DURING THE PERIOD HE SAID THE IMPROVEMENTS TO THE BALANCE SHEET WOULDN'T BE REPEATED IN THE SECOND HALF BECAUSE REVENUE IS UNLIKELY TO MATCH FIRSTHALF SALES 9308180098 930818 BUSINESS BRIEF HOME DEPOT INC HOMEIMPROVEMENT RETAILER SAYS NET ROSE 32 IN PERIOD HOME DEPOT INC REPORTED A 32 RISE IN FISCAL SECONDQUARTER EARNINGS AS CONSUMERS CONTINUED TO FIX UP THEIR HOMES THE ATLANTABASED HOMEIMPROVEMENT RETAILER REPORTED EARNINGS OF 1345 MILLION OR 30 CENTS A SHARE FOR THE QUARTER ENDED AUG 1 COMPARED WITH 1019 MILLION OR 23 CENTS A SHARE A YEAR EARLIER SALES CLIMBED 32 TO 245 BILLION FROM 186 BILLION PERSHARE FIGURES REFLECT A 4FOR3 STOCK SPLIT IN APRIL HOME DEPOT'S SAMESTORE SALES ROSE 9 WHICH WAS SLIGHTLY BELOW ANALYSTS' EXPECTATIONS THE COMPANY SAID THAT FIGURE WOULD HAVE BEEN 8 WITHOUT THE EIGHT SOUTH FLORIDA STORES THAT CONTINUE TO BENEFIT FROM THE HURRICANE ANDREW REBUILDING EFFORT HOME DEPOT WITH 230 STORES OPENED SIX NEW OUTLETS AND RELOCATED ONE DURING THE QUARTER IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING HOME DEPOT'S STOCK CLOSED AT 4475 DOWN 1825 OR 4 9308180097 930818 SIZZLER BRANCH CLOSES FOLLOWING OUTBREAK OF BACTERIAL INFECTION LOS ANGELES A SIZZLER RESTAURANT IN CORVALLIS ORE WAS CLOSED AFTER NINE PEOPLE WHO ATE THERE CONTRACTED A VIRULENT TYPE OF E COLI BACTERIA AND BECAME ILL TWO OF THE VICTIMS WERE HOSPITALIZED AND ALL ARE RECOVERING ACCORDING TO THE BENTON COUNTY HEALTH DEPARTMENT SIZZLER INTERNATIONAL INC CALLED THE OUTBREAK AN ISOLATED INCIDENT AND SAID HEALTH OFFICIALS TOLD THE COMPANY THERE IS NO ONGOING PROBLEM ALL OF THE AFFECTED INDIVIDUALS APPARENTLY ATE AT THE FRANCHISED SIZZLER RESTAURANT BETWEEN AUG 2 AND AUG 6 HEALTH OFFICIALS ARE SOLICITING REPORTS FROM PHYSICIANS AND LABORATORIES IN CENTRAL OREGON IN ORDER TO DETERMINE THE EXTENT OF THE OUTBREAK THE PRECISE SOURCE OF THE INFECTION REMAINS UNKNOWN SIZZLER SAID EXPERTS FOUND NO INDICATION THAT HAMBURGER STEAKS OR ANY OTHER MENU ITEM COULD HAVE CAUSED THE OUTBREAK AND RESULTS OF MICROBIOLOGICAL TESTS ON FOOD SAMPLES FROM THE RESTAURANT WERE NEGATIVE THE COMPANY SAID BUT DR WILLIAM KEENE A CLINICAL EPIDEMIOLOGIST WITH THE OREGON HEALTH DIVISION SAID IT'S NOT LIKELY THAT THE CONTAMINATED FOOD IS AROUND ANY MORE SINCE THE PEOPLE WHO GOT SICK ATE AT THE RESTAURANT SEVERAL DAYS AGO A SIZZLER SPOKESMAN SAID THE COMPANY BECAME AWARE OF THE PROBLEM LAST WEEKEND AND THE RESTAURANT WILL REMAIN CLOSED PENDING A REVIEW OF THE SITUATION BY THE COMPANY AND HEALTH OFFICIALS IN MARCH TWO SIZZLER RESTAURANTS IN SOUTHERN OREGON WERE TEMPORARILY CLOSED AFTER A SIMILAR OUTBREAK THE RESTAURANT OPERATOR TOOK A ONETIME CHARGE OF 49 MILLION OR 10 CENTS A SHARE AGAINST EARNINGS FOR THE FOURTH QUARTER ENDED APRIL 30 PARTLY TO ACCOUNT FOR COSTS STEMMING FROM THE OUTBREAK THE SIZZLER SPOKESMAN SAID HE WAS NOT AWARE THAT THE RECENT PROBLEM WAS RELATED TO THE EARLIER OUTBREAK AND SAID HE CAN'T SPECULATE WHAT EARNINGS WILL BE FOR THE CURRENT QUARTER FROM THE RECENT OUTBREAK THERE ARE 20 SIZZLER RESTAURANTS IN OREGON AND ABOUT 600 IN THE US 9308180096 930818 BUSINESS BRIEF WEATHERFORD INTERNATIONAL INC ACQUISITION OF TUBOSCOPE TRIPS ON RATIO DISAGREEMENT WEATHERFORD INTERNATIONAL INC AND TUBOSCOPE VETCO INTERNATIONAL CORP SAID THE TWO WERE UNABLE TO AGREE ON THE STOCK EXCHANGE RATIO IN WEATHERFORD'S PROPOSED ACQUISITION OF TUBOSCOPE REACTING NEGATIVELY TO THE NEWS THAT THE AGREEMENT WAS IMPERILED TUBOSCOPE COMMON SHARES TUMBLED 1125 YESTERDAY IN COMPOSITE OVERTHECOUNTER TRADING CLOSING AT 8875 A SHARE WEATHERFORD REMAINED MOSTLY UNCHANGED CLOSING AT 11 IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE UP 125 CENTS LAST MONTH THE COMPANIES AGREED ON A PLAN IN WHICH WEATHERFORD WOULD EXCHANGE ONE SHARE OF ITS COMMON STOCK FOR EACH SHARE OF TUBOSCOPE SUBJECT TO CERTAIN ADJUSTMENTS IN A TRANSACTION VALUED THEN AT 370 MILLION BOTH COMPANIES ARE SERVICE AND EQUIPMENT PROVIDERS FOR THE OIL INDUSTRY THE TWO SAID THEY ARE CONTINUING TO NEGOTIATE THEIR LETTER OF INTENT EXPIRES FRIDAY 9308180095 930818 INTERNATIONAL GERMAN MINISTER SEEKS TO MEDIATE GMVW DISPUTE BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL GERMAN ECONOMICS MINISTER GUENTER REXRODT JOINING A CHORUS OF POLITICIANS WORRIED ABOUT DAMAGE TO GERMANY'S INDUSTRIAL IMAGE MOVED TO SEIZE A ROLE IN QUELLING THE INDUSTRIAL ESPIONAGE DISPUTE BETWEEN VOLKSWAGEN AG AND GENERAL MOTORS CORP DAVID HERMAN CHAIRMAN OF GM'S GERMAN SUBSIDIARY ADAM OPEL AG WAS SUMMONED TO BONN FOR A PRIVATE MEETING WITH MR REXRODT YESTERDAY TO DISCUSS THE WIDENING CONTROVERSY SURROUNDING FORMER GM PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA WHO DEFECTED TO VW IN MARCH VW OFFICIALS WILL COME TO BONN TO MEET WITH MR REXRODT LATER THIS WEEK AN ECONOMICS MINISTRY SPOKESMAN SAID MR REXRODT HAS SAID THAT HE IS UNHAPPY WITH THE PROLONGED DISPUTE AND HOPED TO PACIFY THE CONFLICT BY CONVINCING THE TWO PARTIES THAT THE FIGHT SHOULD NOT BE CONDUCTED SO LOUDLY OPEL OFFICIALS SAID THEY WERE WILLING TO MEET WITH MR REXRODT BUT CLEARLY DON'T WANT TO BE PRESSURED INTO ANY SOFTENING OF THEIR CHARGES OPEL HAS ASKED GERMAN PUBLIC PROSECUTORS TO INVESTIGATE WHETHER MR LOPEZ AND HIS COLLEAGUES TOOK CONFIDENTIAL GM AND OPEL DOCUMENTS WHEN THEY JUMPED TO VW VW RECENTLY ACKNOWLEDGED THAT MR LOPEZ AND HIS COLLEAGUES MAY HAVE HAD SENSITIVE GM DOCUMENTS AFTER THEY CAME TO VW BUT THE DOCUMENTS WERE DESTROYED IMMEDIATELY SEPARATELY OPEL CONFIRMED THAT IT WILL INVEST 500 MILLION MARKS 2967 MILLION TO BUILD A DIESELENGINE FACILITY AT ITS FACTORY IN KAISERSLAUTERN GERMANY THE DECISION LINKED TO THE IMPLEMENTATION OF A LEAN PRODUCTION CONCEPT AND AN ACCORD WITH THE WORKERS COUNCIL TO ACCEPT A MORE FLEXIBLE WORK SCHEDULE WAS VIEWED AS AN EXAMPLE OF HOW TO ENHANCE GERMANY'S COMPETITIVENESS AS AN INDUSTRIAL SITE AT A TIME WHEN MANY COMPANIES ARE MOVING PRODUCTION OUT OF THE COUNTRY PLANS FOR THE ENGINE ARE BELIEVED TO BE AMONG THE DOCUMENTS MR LOPEZ AND HIS COLLEAGUES ALLEGEDLY ABSCONDED WITH WHEN THEY LEFT GM 9308180094 930818 TECHNOLOGY NO CANCER LINK IS FOUND IN FLUORIDE LEVELS IN WATER WASHINGTON LEVELS OF FLUORIDE ALLOWED IN DRINKING WATER DON'T LEAD TO CANCER KIDNEY FAILURE OR BONE DISEASE ACCORDING TO A NATIONAL RESEARCH COUNCIL REPORT BUT THE COUNCIL AN ARM OF THE NATIONAL ACADEMY OF SCIENCES CALLED FOR MORE RESEARCH ON PATTERNS OF FLUORIDE EXPOSURE FROM DENTAL PRODUCTS AND FOOD AND ON THE EFFECT ON BONE STRENGTH AND TOOTH ENAMEL AND THE COUNCIL RECOMMENDED THAT THE CURRENT CEILING OF FOUR PARTS PER MILLION FOR DRINKING WATER BE MAINTAINED AS AN INTERIM STANDARD UNTIL THAT RESEARCH IS COMPLETED FOR DECADES THE FLUORIDATION OF WATER HAS BEEN CONTROVERSIAL EVEN THOUGH MOST SCIENTISTS CONTEND THAT INCREASED ACCESS TO FLUORIDATED WATER AND DENTAL PRODUCTS IS PRINCIPALLY RESPONSIBLE FOR THE CONSIDERABLE DECLINE IN DENTAL CAVITIES IN THE YEARS SINCE FLUORIDE WAS FIRST ADDED TO DRINKING WATER IN THE 1940S ABOUT 132 MILLION AMERICANS RECEIVE DRINKING WATER CONTAINING FLUORIDE EITHER NATURALLY OCCURING OR ADDED AT CONCENTRATIONS OF 07 MILLIGRAMS A LITER OR HIGHER THE STUDY SAID THE CURRENT CEILING SET BY THE ENVIRONMENTAL PROTECTION AGENCY WILL MEAN THAT A SMALL PERCENTAGE OF THE POPULATION WILL GET FLUOROSIS A MOTTLING OF TOOTH ENAMEL THE COUNCIL SAID THE BEST WAY TO CONTROL FLUOROSIS WITHOUT JEOPARDIZING HEALTH BENEFITS IS LIKELY TO COME FROM MORE JUDICIOUS CONTROL OF FLUORIDE IN FOODS PROCESSED BEVERAGES AND DENTAL PRODUCTS ESPECIALLY THOSE ITEMS USED BY YOUNG CHILDREN THIS INTAKE CAN BE SIGNIFICANT FOR SOME PEOPLE ESPECIALLY CHILDREN WHO SWALLOW A LOT OF TOOTHPASTE 9308180093 930818 INTERNATIONAL BRIEF BENGUET CORP COMPANY'S 2NDQUARTER NET ROSE SHARPLY ON SPECIAL GAIN BENGUET CORP THE PHILIPPINES' BIGGEST GOLD AND CHROMITE PRODUCER REPORTED CONSOLIDATED NET INCOME OF 4299 MILLION PESOS 157 MILLION FOR THE SECOND QUARTER UP SHARPLY FROM 17 MILLION PESOS A YEAR EARLIER BECAUSE OF AN EXTRAORDINARY GAIN THE COMPANY POSTED A SPECIAL GAIN OF 6409 MILLION PESOS FROM THE SALE OF ITS 335 HOLDING IN EEI CORP A FABRICATION AND INDUSTRIAL ENGINEERING COMPANY AND REAL ESTATE PROPERTIES THAT WAS PARTLY OFFSET BY FINANCIAL CHARGES OF 2094 MILLION PESOS REVENUE FOR THE QUARTER FELL 24 TO 7834 MILLION PESOS FROM 103 BILLION PESOS THE COMPANY SAID ITS DIZON COPPERGOLD OPERATIONS HAD A LOSS OF 34 MILLION PESOS AS A RESULT OF A DECLINE IN COPPER PRICES PLUS CHARGES FOR WORKER CUTBACKS THE LOSS HOWEVER MAY STILL BE RECOUPED FROM INSURANCE IF THE AVERAGE PRICE OF COPPER FOR THE YEAR IS BELOW 97 CENTS A POUND THE COMPANY SAID BENGUET ADDED THAT PROSPECTS FOR THE REST OF THE YEAR HAVE BECOME QUITE FAVORABLE WITH A RECENT UPSWING IN GOLD PRICES 9308180092 930818 INTERNATIONAL BRIEF CHINA NATIONAL PETROLEUM CORP STATE OIL FIRM TO DISMISS ONETHIRD OF WORK FORCE CHINA'S BIG STATE OIL COMPANY PLANS TO TRIM ITS STAFF BY A HALF MILLION WORKERS EQUIVALENT TO ONETHIRD OF ITS EXISTING WORK FORCE BY 1995 TO IMPROVE EFFICIENCY THE CHINA DAILY REPORTED THE OFFICIAL NEWSPAPER SAID SO FAR 150000 WORKERS AT CHINA NATIONAL PETROLEUM CORP HAVE BEEN RELOCATED IN SERVICE INDUSTRY JOBS WITH THE HELP OF THE GOVERNMENT WANG TAO PRESIDENT OF THE OIL COMPANY SAID MANAGEMENT ALSO IS BEING RESTRUCTURED TO CREATE SPECIALIZED ENTERPRISE GROUPS TO SEPARATELY HANDLE RESEARCH EXPLORATION REFINING AND OTHER OPERATIONS THE STREAMLINING IS PART OF CHINA'S EFFORTS TO REVITALIZE BASIC INDUSTRIES WHOSE POOR PERFORMANCE IS HAMPERING INDUSTRIAL GROWTH THE CHINA DAILY ALSO REPORTED THAT THE COAL INDUSTRY HAS DISMISSED 100000 WORKERS SO FAR THIS YEAR AND PLANS TO DISMISS AN ADDITIONAL 40000 BY DECEMBER COAL COMPANIES ALSO DISMISSED 100000 WORKERS IN 1992 THESE WORKERS LIKE THOSE AT THE OIL COMPANY HAVE BEEN MOVED TO NEW JOBS WITH GOVERNMENT AID 9308180091 930818 LEISURE & ARTS OPERA EAST GERMAN DEBUTS WITH TRISTAN' BY PAUL LEVY BAYREUTH GERMANY BAYREUTH IS BETWEEN RING CYCLES LAST SUMMER MARKED THE END OF THE HARRY KUPFER/HANS SCHAVERNOCH PRODUCTION NEXT SUMMER'S NEW CYCLE BY THE BERLIN SCHILLERTHEATER TEAM OF ALFRED KIRCHNER AND ROSALIE IS IN REHEARSAL NOW WITH JAMES LEVINE CONDUCTING ON HIS DAYS OFF FROM THIS YEAR'S PARSIFAL THE BRITISH BASS JOHN TOMLINSON PREPARING NEXT YEAR'S WOTAN WHEN HE IS NOT ONSTAGE AS KING MARK AND THE AMERICAN SOPRANO DEBORAH POLASKI MUGGING UP BRUNNHILDE WHEN SHE IS NOT TAKING HER MINIMUM OF 10 CURTAIN CALLS AS KUNDRY THE ONLY NEW PRODUCTION THIS YEAR IS THE FORMER EAST GERMAN PLAYWRIGHT HEINER MULLER'S TRISTAN UND ISOLDE SINCE 1989 BAYREUTH HAS HAD A BIG INFLUX OF EAST GERMANS EGER CHEB IN THE FORMER CZECHOSLOVAKIA IS ACTUALLY CLOSER TO BAYREUTH THAN NUREMBERG AND BEFORE 1989 THE CITIZENS OF BAYREUTH FELT THAT THEY OCCUPIED A PERIPHERAL POSITION IN GERMANY THEY CONSEQUENTLY TAKE A DEEP INTEREST IN WHAT HAPPENS IN THE EAST SO MR MULLER'S FIRSTEVER OPERA PRODUCTION WAS KEENLY AWAITED IT WAS FEROCIOUSLY DAMNED BY THE GERMAN PRESS ESPECIALLY BY GERMANY'S LEADING CRITIC JOACHIM KAISER FOR ITS LACK OF IDEAS AND SOUNDLY BOOED ON ITS FIRST AND SECOND PERFORMANCES BUT BY THE FOURTH PERFORMANCE WHICH I SAW LAST WEEK THE AUDIENCE MEMBERS WERE ON THEIR FEET CHEERING THE ALREADY EXHAUSTED CAST UNTIL BOTH PARTIES COULD SCARCELY STAND UP ANY LONGER FURTHER PERFORMANCES ON AUG 22 AND 28 ON REFLECTION I THINK THEY WERE ONLY A LITTLE OVERENTHUSIASTIC THE MINIMALIST BOXY SET BY ERICH WONDER DEPENDS ENTIRELY ON MANFRED VOSS'S LIGHTING EFFECTS WITH PROJECTIONS OF RECTANGLES OF LIGHT RESEMBLING COLORFIELD PAINTINGS THE LAST ACT FEATURED A TECHNICAL WONDER A SHIMMERING GRAY BAR PROJECTED IN SUSPENSION BY LASER PRESUMABLY ACROSS HALF THE FRONT OF THE STAGE THE COSTUMES WERE TRULY GHASTLY BY YOHJI YAMAMOTO THEY COMBINED 10YEAROUTOFDATE JAPANESE FASHIONS OF THE SORT YOU USED TO SEE IN THE COMME DES GARCONS SALES WITH METALLIC HOOP COLLARS THAT WOULD HAVE LOOKED SILLY IN STAR TREK KING MARK'S IN PARTICULAR CAUGHT THE LIGHT IN AN UNFORTUNATE MANNER THAT SEEMED TO HYPNOTIZE THAT FRACTION OF THE AUDIENCE NOT YET LULLED TO SLEEP BY THE TEDIUM OF ACT II THIS IS A TRISTAN DRAGGY EVEN BY TRADITIONALLY LETHARGIC BAYREUTH STANDARDS DANIEL BARENBOIM'S CONDUCTING DID NOT PROVIDE A WAKEUP CALL HIS TEMPOS WENT TO UNNECESSARY EXTREMES FROM SNAIL'S PACE TO HORSE RACE WITH THE ORCHESTRA AT ONE POINT BRIEFLY RUNNING AWAY WITH HIM HOWEVER JUSTICE DEMANDS THE FULLEST PRAISE FOR HIS ACT III PRELUDE FULL OF ALMOST PALPABLE GRIEF THE UNBEARABLE PAIN OF TRISTAN WAITING AND LONGING FOR DEATH HERE MR MULLER TOO CAME INTO HIS OWN TRISTAN'S ISLAND IS A GRAY ROOM HEAPED WITH RUBBLE DRESSED IN STONECOLORED RAGS HE SLUMPS IN A BROKENDOWN GRAY ARMCHAIR ALL THIS LOOKED LIKE A FAIRLY DIRECT REFERENCE TO MR MULLER'S FORMER LIFE IN THE EAST REVELATIONS OF HIS CONVERSATIONS WITH THE EAST GERMAN SECRET POLICE RECENTLY SHOCKED GERMANY AND YOU COULD MAKE THE CASE THAT THIS SCENE IS AN ALLEGORY OF THE END OF COMMUNISM THAT THE RUBBLE IS THE RUBBLE OF THE BERLIN WALL OR THAT THE LIEBESTOD IS THE APOTHEOSIS AND RETURN OF LENINIST COMMUNISM TO THE PRIMITIVE COMMUNIST CONCEPTION OF LOVE OF MANKIND BUT I WON'T I WILL SAY THAT THIS IS THE ONLY TRISTAN I'VE SEEN WHERE ISOLDE DIES STANDING UP IT IS ALSO A REMARKABLY CHASTE PRODUCTION THE CURTAINCALL KISS EXCHANGED BY WALTRAUD MEIER AND SIEGFRIED JERUSALEM WAS FAR MORE PASSIONATE THAN ANYTHING THAT PASSED BETWEEN THEM DURING THE PERFORMANCE MS MEIER FORMERLY A MEZZO WHOSE KUNDRY WAS PRAISED TO THE SKIES HAS A DARKLY BEAUTIFUL MIDDLE REGISTER BUT SHE EXPERIENCED A SPOT OF BOTHER WITH THE TOP C OF HER PART MR JERUSALEM'S VOICE IS LIGHT FOR A HELDENTENOR ROLE BOTH SINGERS BENEFITED GREATLY FROM THE FACT THAT WAGNER HIMSELF COVERED THE BAYREUTH ORCHESTRA PIT BOTH TO PREVENT THE MUSICIANS FROM DISTRACTING THE AUDIENCE AND TO KEEP THE SINGERS FROM BEING BLASTED OUT OF HEARING BY THE ORCHESTRA THAT SAID THERE WERE GREAT FEATS OF MUSICALITY AS WELL AS OF ACTING FROM THEM AND OTHERS NOTABLY MR TOMLINSON AS KING MARK AND FALK STRUCKMANN AS KURWENAL IN PARSIFAL ON THE OTHER HAND PLACIDO DOMINGO BRAVELY SHOWED THAT AT THE AGE OF 52 THOUGH HIS GERMAN DICTION MAY BE PECULIAR HE CAN HANDLE A HELDENTENOR ROLE WITH EASE AND INTELLIGENCE SOME PEOPLE WERE ASTONISHED BY THE GRACE AND BEAUTY OF HIS DEBUT IN A WAGNERIAN ROLE FOR THOUGH PARSIFAL IS WAGNER'S MOST LYRICAL OPERA THE HERO SINGS MOST OF HIS PART IN THE CHROMATIC ACT II AND HAS ONLY FOUR BRIEF OPPORTUNITIES TO SHOW OFF HIS VOICE IN THE REALLY GORGEOUS MORE CONVENTIONALLY TONAL MUSIC OF ACT III IN WHICH KUNDRY FOR THE MOST PART THRILLINGLY SUNG BY MS POLASKI IS TOTALLY SILENT EXCEPT FOR ONE SCREAM MR LEVINE HAS CONDUCTED THE FESTIVAL'S PARSIFAL SINCE 1984 SAVE FOR 1987 WHEN MR BARENBOIM HAD A GO AT IT AND HIS READING OF THE SCORE COULD NOT BE IMPROVED UPON APART FROM A MOMENT OR TWO IN ACT III WHEN HANS SOTIN GURNEMANZ FALTERED MR LEVINE SCRUPULOUSLY MODERATED THE STUPENDOUS WAGNERIAN ORCHESTRA WOLFGANG WAGNER'S DIRECTION AND SETS WERE FINE STRIKING A MEAN BETWEEN CONTEMPORARY STAGE FASHION AND TRADITIONAL NATURALISM THIS WAS ESPECIALLY SO IN THE DANCE OF THE FLOWERMAIDENS A HOLLYWOODISH ALMOST BUSBY BERKELEY STAGING THAT REMAINED JUST THIS SIDE OF VULGAR IT IS A BAYREUTH TRADITION THAT THERE IS NO APPLAUSE AFTER THE FIRST ACT I SUPPOSE BECAUSE IT DEPICTS HOLY COMMUNION ON THIS OCCASION THE OLDTIMERS HAD TO HUSH THE OVEREXCITED NOVICES IT'S ALL PART OF THE SLIGHTLY NUTTY PHONY RELIGIOUS AURA OF THIS ENTIRE EVENT DEDICATED TO WAGNER'S HOLY ART A FESTIVAL THAT HAS SPENT MORE THAN A CENTURY REPEATING THE SAME 10 WORKS BY ONE VERY GREAT SLIGHTLY CRACKED COMPOSER IN FACT PARSIFAL IS DEEPLY SUBVERSIVE OF CHRISTIANITY THE WAGNERIAN PARTY LINE IS THAT IT IS A CELEBRATION OF THE VICTORY OF CHRISTIANITY OVER PAGANISM DOES IT NOT HOWEVER WITH ITS MIRACLES AND RELICS WITH MAGICAL POWERS AND ITS ABSENCE OF GOD THE CREATOR WHICH AMOUNTS TO A NEARDENIAL OF MONOTHEISM REDUCE CHRISTIANITY TO A MYTH ON AN EQUAL FOOTING OF TRUTH WITH THAT OF THE RING OF THE NIEBELUNG THE LAST PERFORMANCE IS ON AUG 24 9308180090 930818 DAMES & MOORE AIR FORCE JOB LOS ANGELES DAMES & MOORE AN INTERNATIONAL ENGINEERING AND ENVIRONMENTAL CONSULTING COMPANY SIGNED A CONTRACT WITH THE US AIR FORCE FOR ENVIRONMENTAL ASSESSMENT REMEDIAL DESIGN AND CONSTRUCTION MONITORING SERVICES ON OLD MILITARY SITES IN ALASKA THE CONTRACT COULD YIELD AS MUCH AS 20 MILLION A YEAR FOR A FIVEYEAR PERIOD THE COMPANY SAID 9308180088 930818 OTC FOCUS STOCKS RISE TO SECOND STRAIGHT RECORD AS TECHNOLOGYRELATED SHARES CLIMB BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET LEAPED TO A SECOND CONSECUTIVE RECORD HIGH BOOSTED BY INVESTORS SNATCHING UP SHARES OF TELECOMMUNICATIONS TECHNOLOGY AND BIOTECHNOLOGY STOCKS THE NASDAQ COMPOSITE INDEX ROSE 412 OR 057 TO 73101 ADVANCING ISSUES OUTNUMBERED DECLINERS 1489 TO 1323 ON TOTAL VOLUME OF 2735 MILLION SHARES UP FROM MONDAY'S 2456 MILLION MCCAW CELLULAR COMMUNICATIONS FELL 1/4 TO 56 AFTER MONDAY'S FIVEPOINT RISE ON THE ANNOUNCEMENT OF ITS PLANNED MERGER WITH AMERICAN TELEPHONE & TELEGRAPH BUT MANY OTHER TELECOMMUNICATIONS STOCKS CONTINUED TO SOAR LIN BROADCASTING SURGED 6 TO 121 AFTER SAILING 12 3/4 TO 115 ON MONDAY INVESTORS ARE SNATCHING UP THE STOCK ON THE ASSUMPTION THAT AT&T IS LIKELY TO ACQUIRE THE 47 OF LIN SHARES THAT MCCAW DOESN'T OWN OTHER CELLULAR STOCKS POSTED GAINS VANGUARD CELLULAR JUMPED 2 TO 33 1/4 AND CONTEL CELLULAR ROSE 1/8 TO 18 3/8 ANOTHER WIRELESS COMMUNICATIONS STOCK NEXTEL COMMUNICATIONS GAINED 2 7/8 TO 37 MORGAN STANLEY ANALYST STEPHANIE COMFORT INITIATED COVERAGE OF NEXTEL WITH A BUY RATING ON MONDAY THE PROVIDER OF SPECIALIZED MOBILE RADIO SERVICES OR SMR REPORTED A LOSS FOR ITS FISCAL FIRST QUARTER ENDED JUNE 30 OF EIGHT CENTS A SHARE WIDENED FROM ONE CENT A SHARE A YEAR EARLIER OTHER SMR STOCKS WHICH WERE CALLED HOT STOCKS IN MONDAY'S OTC FOCUS ALSO ROSE PITTENCRIEFF COMMUNICATIONS ADVANCED 1 3/4 TO 18 AND CENCALL COMMUNICATIONS POPPED UP 1 5/8 TO 26 THE DAY'S MOST ACTIVE STOCK INTEL GAINED 5/8 TO 65 NETWORKING STOCKS CISCO SYSTEMS UP 2 1/4 TO 57 1/4 AND SYNOPTICS COMMUNICATIONS WHICH JUMPED 1 1/2 TO 29 1/2 WERE AMONG THE MOST ACTIVE ISSUES BIOTECHNOLOGY STOCKS CONTINUED TO MOVE UPWARD AFTER MONDAY'S INITIAL BOUNCE THERE IS SOME REALLY GOOD BUYING IN THE BIOTECH GROUP WHICH IS HELPING TO FUEL THE NASDAQ MARKET SAID GREG RILEY A SENIOR OTC TRADER AT FIRST BOSTON CORP THESE STOCKS HAVE BEEN DOWN FOR SO LONG BIOGEN GAINED 2 3/4 TO 30 1/4 GENZYME ROSE 1 1/4 TO 33 CHIRON ZIPPED UP 2 1/4 TO 60 3/4 AND AMGEN CLIMBED 1 1/4 TO 34 3/4 ELSEWHERE LAS VEGAS ENTERTAINMENT NETWORK JUMPED 1 1/2 TO 7 7/8 ON 29 MILLION SHARES MORE THAN EIGHT TIMES ITS NORMAL VOLUME THE COMPANY SAID THE BOARD OF EXCALIBUR HOLDING HAS AGREED TO ACQUIRE BY MERGER LAS VEGAS ENTERTAINMENT'S OUTSTANDING STOCK AT 12 A SHARE NEWLY CREATED INTERESTBEARING EXCALIBUR HOLDING PREFERRED STOCK WILL PAY FOR THE TRANSACTION EXCALIBUR HOLDING EDGED UP 1/8 TO 9 1/4 A SPOKESMAN SAID LAS VEGAS ENTERTAINMENT IS A PRODUCER AND INTERNATIONAL DISTRIBUTOR OF TELEVISION PROGRAMMING THAT SHOWCASES ENTERTAINMENT AND EVENTS OF LAS VEGAS KURZWEIL APPLIED INTELLIGENCE LEAPED 1 3/8 TO 11 3/8 ON ITS FIRST TRADING DAY KURZWEIL OFFERED 21 MILLION SHARES AT 10 THROUGH UNDERWRITERS LED BY ROBERTSON STEPHENS & CO THE COMPANY DEVELOPS AND MARKETS AUTOMATED SPEECHRECOGNITION SYSTEMS SAM & LIBBY ROSE 1/2 TO 3 3/4 MONDAY SAM & LIBBY SAID IT REACHED AN AGREEMENT IN PRINCIPLE TO SETTLE A SECURITIES CLASSACTION LAWSUIT FILED AGAINST IT IN 1992 IN A CALIFORNIA US DISTRICT COURT THE FOOTWARE AND APPAREL MAKER SAID CLAIMS AGAINST IT AND OTHER DEFENDANTS WILL BE DISMISSED WITHOUT ADMISSION OR PRESUMPTION OF LIABILITY OR WRONGDOING A SETTLEMENT FUND VALUED AT 825 MILLION WILL BE ESTABLISHED THE COMPANY SAID ITS INSURANCE CARRIER WILL CONTRIBUTE 41 MILLION WITH SAM & LIBBY PUTTING IN 2 MILLION IN STOCK AND 22 MILLION IN CASH CLEARLY CANADIAN DROPPED 5/8 TO 4 7/8 THE WALL STREET JOURNAL REPORTED YESTERDAY THAT SUPERMARKET SALES OF CLEARLY CANADIAN PLUMMETED NEARLY 25 TO 241 MILLION IN THE 12 WEEKS ENDED JULY 4 FROM A YEAR EARLIER ACCORDING TO INFORMATION RESOURCE'S INFOSCAN SERVICE SIGMA DESIGNS DROPPED 1/8 TO 4 5/8 THE COMPANY REPORTED A SECONDQUARTER LOSS OF 472 A SHARE WIDENED FROM A LOSS OF 27 CENTS A SHARE A YEAR EARLIER THE FREMONT CALIF COMPANY DEVELOPS GRAPHICS AND DISPLAY PRODUCTS FOR USE WITH IBM IBMCOMPATIBLE AND APPLE MACINTOSH PERSONAL COMPUTERS 9308180087 930818 UTILITY OFFICIAL IS CHARGED IN PROBE OF ELECTION FUNDS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL PEARL RIVER NY AN ORANGE & ROCKLAND UTILITIES INC EXECUTIVE WAS ARRESTED AND CHARGED WITH GRAND LARCENY BRIBETAKING AND MAKING ILLEGAL ELECTION CONTRIBUTIONS LINDA WINIKOW VICE PRESIDENT OF CORPORATE POLICY AND EXTERNAL AFFAIRS AT THE UTILITY COMPANY WHICH SERVES ORANGE AND ROCKLAND COUNTIES IN NEW YORK WAS ARRAIGNED LATE MONDAY EVENING IN ORANGETOWN JUSTICE COURT AND RELEASED ON HER OWN RECOGNIZANCE THE FORMER STATE SENATOR DIDN'T ENTER A PLEA AND IS DUE BACK IN COURT OCT 19 THE FELONY CHARGES CARRY A MAXIMUM SENTENCE OF SEVEN YEARS SAID KENNETH GRIBETZ ROCKLAND COUNTY DISTRICT ATTORNEY PROSECUTORS SAID THE ARREST STEMS FROM AN INVESTIGATION INTO ELECTION CONTRIBUTIONS MADE TO NEW YORK STATE ASSEMBLYMAN SAM COLMAN A CURRENT CANDIDATE FOR ROCKLAND COUNTY EXECUTIVE MR COLMAN DIDN'T RETURN CALLS SEEKING A COMMENT MR GRIBETZ SAID THE TRAIL OF ALLEGEDLY ILLEGAL CONTRIBUTIONS AFFECTS FEDERAL OFFICE HOLDERS INCLUDING US CONGRESSIONAL MEMBERS OUR INVESTIGATION IS REALLY JUST BEGINNING HE SAID MEANWHILE ORANGE & ROCKLAND SAID IT IS IN THE MIDST OF ITS OWN INTERNAL INQUIRY THIS IS NOT THE WAY WE DO BUSINESS HERE SAID JAMES F SMITH CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN REFERENCE TO CHARGES AGAINST MS WINIKOW MR SMITH VOWED TO GET TO THE BOTTOM OF THIS MATTER AS QUICKLY AND THOROUGHLY AS POSSIBLE THE COMPANY ADDED THAT IT IS COOPERATING WITH THE DISTRICT ATTORNEY'S INQUIRY THE UTILITY SAID AN ADMINISTRATOR WAS FIRED LAST WEEK IN RELATION TO ITS INVESTIGATION THE ADMINISTRATOR HASN'T BEEN CHARGED BY PROSECUTORS IN THE MATTER MS WINIKOW WAS PLACED ON LEAVE OF ABSENCE BUT SHE WILL CONTINUE TO DRAW HER 185000 ANNUAL SALARY MR GRIBETZ PLANS TO CONVENE A GRAND JURY TO EXAMINE FINANCIAL PRACTICES AT THE UTILITY WHICH HAD 8442 MILLION IN REVENUE LAST YEAR THE DISTRICT ATTORNEY'S CHARGES ALLEGE THAT MS WINIKOW 53 YEARS OLD USED PRESSURE TACTICS TO TRY AND FORCE DEVOTION INC A NEW YORK ADVERTISING AGENCY INTO CONTRIBUTING TO MR COLMAN'S CAMPAIGN ACCORDING TO THE DISTRICT ATTORNEY'S OFFICE MS WINIKOW THREATENED TO WITHDRAW ITS ACCOUNT IF THE AGENCY DIDN'T CONTRIBUTE TO MR COLMAN'S CAMPAIGN MR GRIBETZ SAID DEVOTION DID 1 MILLION IN BUSINESS ANNUALLY WITH ORANGE & ROCKLAND MR GRIBETZ ALSO CHARGED THAT MS WINIKOW STATE SENATOR FROM 1974 TO 1984 USED MISAPPROPRIATED FUNDS FOR HER OWN PERSONAL EXPENSES AND ALLEGEDLY STOLE 3000 FROM DEVOTION THE ADVERTISING AGENCY DECLINED TO COMMENT THE STATE PUBLIC SERVICE COMMISSION SAID IT HAS BEGUN ITS OWN INQUIRY INTO THE ALLEGATIONS AGAINST THE UTILITY A SPOKESWOMAN FOR THE REGULATORY AGENCY SAID ANY WRONGDOINGS THAT AFFECTED RATEPAYERS WOULD BE ADDRESSED AS PART OF ORANGE & ROCKLAND'S CURRENT RATE PROCEEDING 9308180086 930818 BEAR STEARNS FILES TO SELL SHARES NEW YORK BEAR STEARNS COS SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL 846211 SHARES IN CONNECTION WITH THE COMPANY'S CAPITAL ACCUMULATION PLAN UNDER THE PLAN CERTAIN EMPLOYEES COULD DEFER A PORTION OF THEIR COMPENSATION AND BE PAID IN SHARES OF BEAR STEARNS STOCK BUT THESE DEFERRALS WERE TERMINATED BY BEAR STEARNS IN DECEMBER TO PRESERVE ABOUT 165 MILLION IN TAX DEDUCTIONS FOR THE CORPORATION THE COMPANY HAD TERMINATED THE DEFERRALS TO PROTECT AGAINST A POSSIBLE MOVE BY THE CLINTON ADMINISTRATION TO DISALLOW THE DEDUCTION OF EXECUTIVE COMPENSATION OVER 1 MILLION 9308180085 930818 INTERNATIONAL BRIEF PT BARITO PACIFIC TIMBER SALOMON BROTHERS TO HELP UNDERWRITE JAKARTA OFFERING THE 295 MILLION INTERNATIONAL SHARE OFFERING OF PT BARITO PACIFIC TIMBER THE LARGESTEVER OFFERING IN INDONESIA GOT A BOOST AS SALOMON BROTHERS INC AGREED TO ACT AS ONE OF THE UNDERWRITERS THE NEW YORK INVESTMENT BANK A UNIT OF SALOMON INC LAST MONTH TENTATIVELY DECLINED TO HELP ORGANIZE THE OFFERING A FIRM DECISION BY SALOMON TO STAY AWAY FROM THE OFFERING WOULD HAVE HURT CONFIDENCE AMONG SOME FOREIGN INVESTORS SALOMON SAID YESTERDAY THAT IT WOULD JOIN HONG KONG'S CROSBY SECURITIES LTD BRITAIN'S SCHRODERS PLC AND JAPAN'S NIKKO SECURITIES CO AS INTERNATIONAL UNDERWRITERS OF THE OFFERING WHICH IS LED BY PT MAKINDO A JAKARTA SECURITIES FIRM THE FORMAL OFFERING PERIOD IS SCHEDULED FOR AUG 25 TO SEPT 2 BARITO PACIFIC A BIG MAKER OF PLYWOOD IS HEADED BY ONE OF INDONESIA'S MOST POWERFUL BUSINESSMEN PRAJOGO PANGESTU A FRIEND OF PRESIDENT SUHARTO A SALOMON SPOKESMAN DECLINED TO EXPLAIN THE FIRM'S CHANGE OF HEART WHEN SALOMON STEPPED BACK FROM THE DEAL LAST MONTH BANKERS SAID THE FIRM FELT IT HADN'T OBTAINED ENOUGH INFORMATION TO COMPLETE ITS DUEDILIGENCE STUDY OF BARITO BARITO WILL BECOME ONE OF THE MAIN PLAYS ON THE JAKARTA STOCK MARKET ACCOUNTING FOR MORE THAN 10 OF THE COMPOSITE INDEX CROSBY SECURITIES LTD SCHRODERS PLC SALOMON BROTHERS INC AND NIKKO SECURITIES CO ARE ACTING AS INTERNATIONAL SELLING AGENTS IN A SHARE OFFERING BY PT BARITO PACIFIC TIMBER OF INDONESIA THEIR ROLE WAS INCORRECTLY DESCRIBED AS BEING INTERNATIONAL UNDERWRITERS OF THE OFFERING IN AN ARTICLE YESTERDAY 9308180084 930818 INTERNATIONAL BRIEF HANSON PLC PRETAX PROFIT FELL 37 FOR FISCAL 3RD QUARTER UK CONGLOMERATE HANSON PLC REPORTED THAT PRETAX PROFIT FELL 37 TO 256 MILLION 3816 MILLION OR 38 PENCE A SHARE FOR THE THIRD QUARTER ENDED JUNE 30 AS A US MINERS' STRIKE CUT PROFIT AT ITS PEABODY SUBSIDIARY FOR THE YEAREARLIER PERIOD PRETAX PROFIT WAS 405 MILLION OR 72 PENCE A SHARE SALES FOR THE LATEST QUARTER WERE UP 22 TO 231 BILLION FROM 181 BILLION A YEAR EARLIER HANSON'S PRETAX PROFIT AND DIVIDEND WHICH WAS UNCHANGED AT 285 PENCE WERE IN LINE WITH ANALYSTS' FORECASTS FOR THE NINEMONTH PERIOD HANSON HAD A PRETAX PROFIT OF 763 MILLION DOWN 16 FROM 905 MILLION A YEAR EARLIER THE CONTINUING MINERS' STRIKE HAS AFFECTED ABOUT HALF OF PEABODY'S COAL CAPACITY DURING THE LATEST QUARTER THE COMPANY SAID UNION WORKERS IN THE US HAVE AGREED TO RESUME NEGOTIATIONS IN HOPES OF ENDING THE STRIKE 9308180083 930818 TECHNOLOGY GM'S HUGHES UNIT WINS PATENT CASE AGAINST GOVERNMENT SATELLITE SYSTEM'S USE BY NASA AND PENTAGON CONSTITUTED INFRINGEMENT JUDGE RULES BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL JUDGE RULED THAT THE PENTAGON AND NASA INFRINGED ON A HUGHES AIRCRAFT CO PATENT FOR A SATELLITECONTROL SYSTEM THAT HELPED USHER IN THE SPACE AGE JUDGE JAMES TURNER OF THE US CLAIMS COURT IN WASHINGTON DETERMINED THAT THE GOVERNMENT USED A HUGHES INVENTION WHICH RELIES ON A SINGLE ROCKET NOZZLE TO ORIENT SATELLITES PROPERLY JUST BEFORE THEY ARE KICKED INTO ORBIT ON 84 CIVILIAN AND MILITARY SATELLITES MANUFACTURED BY OTHER COMPANIES THROUGH THE 1980S THE DECISION COULD BRING A WINDFALL TO GENERAL MOTORS CORP'S LOS ANGELESBASED UNIT WHICH CLAIMS IT IS OWED MORE THAN 600 MILLION IN BACK ROYALTIES AND AT LEAST THAT MUCH IN ADDITIONAL DAMAGES THE GOVERNMENT IS LIKELY TO APPEAL JUSTICE DEPARTMENT LAWYERS CONTEND THE ROYALTIES AT ISSUE AMOUNT TO ONLY ABOUT 35 MILLION PLUS INTEREST JUDGE TURNER ISN'T EXPECTED TO RULE ON THE AMOUNT OF DAMAGES UNTIL THE END OF THE YEAR NEVERTHELESS THE LENGTHY DECISION CAPS A TORTUOUS 27YEAR LEGAL BATTLE THAT ALREADY HAS FEATURED THREE TRIALS AND NUMEROUS APPEALS THAT WENT TO THE SUPREME COURT THE DISPUTE STRETCHES BACK TO THE EARLY DAYS OF THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION HUGHES ORIGINALLY DEVELOPED THE SATELLITE ATTITUDECONTROL SYSTEM IN 1960 AND NASA QUICKLY SIGNED A SOLESOURCE CONTRACT TO RELY ON THE TECHNOLOGY IN THE NATION'S FIRST COMMUNICATIONS SATELLITE COMPANY SCIENTISTS RECEIVED CREDIT FOR DEVISING A PAYLOAD THAT WAS LIGHT ENOUGH TO BE BOOSTED INTO ORBIT BY THE FLEDGLING ROCKETS OF THAT ERA AND WAS GEOSYNCHRONOUS ADOPTING A STATIONARY POSITION OVER A SPECIFIC POINT OF THE EARTH'S SURFACE WHEN THE COMPANY FILED FOR A PATENT IN ITS OWN NAME HOWEVER NASA OBJECTED IT TOOK UNTIL 1973 FOR THE COURTS TO RESOLVE THE QUESTION AND ISSUE THE PATENT TO HUGHES IN 1973 HUGHES FILED SUIT CHARGING THAT THE GOVERNMENT ILLEGALLY USED THE COMPANY'S PATENTED TECHNOLOGY AND SEEKING COMPENSATION IN THE MID1980S HUGHES SUED INTELSAT COMSAT AND FORD MOTOR CO FOR INFRINGING ON ITS PATENT EVENTUALLY SETTLING THOSE CLAIMS OUT OF COURT BY 1990 AFTER HUGHES'S PATENT HAD EXPIRED THE COMPANY CLAIMED IT DESERVED COMPENSATION FOR A TOTAL OF 92 SATELLITES BUILT BY COMPETITORS THAT INCLUDED THE HUGHES TECHNOLOGY LAWYERS FOR HUGHES AND THE US ENGAGED IN UNSUCCESSFUL SETTLEMENT DISCUSSIONS IN 1988 THE LATEST RULING COULD PROMPT BOTH SIDES TO GO BACK TO THE NEGOTIATING TABLE VICTOR SAVIKAS THE MAIN ATTORNEY REPRESENTING HUGHES SAID IN AN INTERVIEW THAT HE AND HIS CLIENT CERTAINLY WOULD BE WILLING TO LISTEN TO ANY NEW OFFER FROM THE JUSTICE DEPARTMENT 9308180082 930818 STATISTICS OVERSTATE HEALTH CARE COSTS BY SUZANNE TREGARTHEN IN A SPEECH MONDAY TO THE NATIONAL GOVERNORS' ASSOCIATION PRESIDENT CLINTON OFFICIALLY KICKED OFF HIS CAMPAIGN TO REFORM US HEALTH CARE ALTHOUGH DETAILS OF HIS PLAN WERE SKETCHY MR CLINTON REITERATED HIS COMMITMENT TO EXTEND COVERAGE TO THE UNINSURED AND TO IMPOSE MEASURES TO CONTROL HEALTH CARE COSTS THE FIRST STEP THE PRESIDENT SAID WILL BE TO SLASH COSTS THIS REPRESENTS A SOUND POLITICAL STRATEGY HOW THE NATION WILL EXTEND COVERAGE TO THE UNINSURED AND WHO WILL PAY FOR IT ARE HOTLY CONTESTED ISSUES BUT EVERYONE AGREES THAT HEALTH PRICES ARE OUT OF CONTROL EVIDENCE IS SAID TO BE THE SHOCKING NEWS THAT SINCE 1980 HEALTHCARE PRICES HAVE BEEN RISING AT AN 8 ANNUAL RATE TWICE AS FAST AS THE GENERAL PRICE INDEX INDEED AN 8 GROWTH RATE WOULD BE SHOCKING IF IT WERE TRUE BUT ABSENT FROM MOST HEALTHCARE DISCUSSIONS HAS BEEN ANY SERIOUS ATTEMPT TO DETERMINE WHETHER WE CAN DRAW APPROPRIATE CONCLUSIONS FROM WHAT THE STATISTICS TELL US EVEN THE OFFICIALS WHO MAKE THE MEASUREMENTS ADMIT THAT THEIR METHODS PUT AN UPWARD BIAS ON ESTIMATES OF MEDICAL PRICES AND A DOWNWARD BIAS ON ESTIMATES OF MEDICAL INDUSTRY OUTPUT TWO ISSUES PLAY A ROLE IN THE MEASUREMENT PROBLEM FIRST THE MEDICAL PRICE INDEX COMPUTED BY THE BUREAU OF LABOR STATISTICS USES LIST PRICES IN DETERMINING PRICE MOVEMENTS LIST PRICES ARE THE FEES PHYSICIANS HOSPITALS AND OTHER PROVIDERS LIST ON THE INVOICES FOR THEIR SERVICES BUT THEY BEAR LITTLE RESEMBLANCE TO ACTUAL RECEIPTS ALMOST ALL PROVIDERS HAVE CONTRACTS WITH PRIVATE INSURERS MEDICARE AND MEDICAID THAT LIMIT THE FEES FOR ALMOST ALL SERVICES THE PRICES ALLOWED BY THESE PRIVATE AND GOVERNMENT INSURANCE CARRIERS ARE CALLED TRANSACTION PRICES THESE DISCOUNTED PRICES ARE WHAT PROVIDERS OF CARE ACTUALLY RECEIVE FOR THEIR SERVICES AND ARE A MORE ACCURATE INDICATOR OF WHAT HEALTH CARE ACTUALLY COSTS IF TRANSACTION PRICES ROSE AT THE SAME RATE AS LIST PRICES THIS WOULD NOT CREATE A MEASUREMENT PROBLEM AT THE BLS HOWEVER LIST PRICES INCREASE MUCH FASTER THEREFORE BY TRACKING MOVEMENTS IN LIST PRICES THE BLS INDEX ERRONEOUSLY DISTORTS THE REAL PICTURE THE MAGNITUDE OF THIS ERROR IS LARGE ACTUARIES AT THE HEALTH CARE FINANCING ADMINISTRATION HAVE DEVELOPED A TRANSACTION PRICE INDEX FOR HOSPITAL SERVICES WHICH REPRESENT MORE THAN 40 OF HEALTHCARE SPENDING THEIR MEASURE SHOWS HOSPITAL PRICES INCREASING AT A FAR SLOWER RATE THAN IS COMMONLY BELIEVED ABOUT 70 AS FAST AS THE BLS'S OFTQUOTED HOSPITAL PRICE INDEX IN FACT THE HCFA TRANSACTION PRICE INDEX REVEALS THAT SINCE 1978 THERE HAVE BEEN THREE YEARS IN WHICH HOSPITAL PRICES HAVE NOT INCREASED AS QUICKLY AS PRICES IN THE REST OF THE ECONOMY THE DISCREPANCY BETWEEN LIST AND TRANSACTION PRICING OCCURS IN THE INDEXES USED TO MEASURE PRICE CHANGES IN OTHER HEALTH CARE AREAS SUCH AS PHYSICIAN SERVICES BUT NEITHER HCFA NOR THE BLS HAS DEVELOPED TRANSACTION PRICE INDEXES IN THESE AREAS HOW MUCH DISCOUNTING OCCURS A FEW PHONE CALLS TO LOCAL PROVIDERS REVEALED THE FOLLOWING A TYPICAL PHYSICIAN DISCOUNTS BILLINGS FOR 80 TO 90 OF HIS PATIENTS AN OXYGEN SUPPLY FIRM DISCOUNTS 80 OF ITS BILLINGS AS DOES AN ORTHOPEDIC SURGEON A NEUROLOGIST DISCOUNTS 90 ONE WOULD EXPECT THEREFORE THAT AN INDEX THAT TRACKS LIST PRICES FOR SUCH PROVIDERS WOULD BE A SIGNIFICANT DISTORTION OF REALITY BUT THE DISTORTION DOESN'T END THERE AN ANALYSIS OF THE METHODS USED TO TRACK HEALTHCARE PRICES REVEALS A SECOND MAJOR MEASUREMENT PROBLEM ACCOUNTING FOR QUALITY THE BLS ATTEMPTS TO DISENTANGLE QUALITY IMPROVEMENTS FROM PRICE CHANGES SO THAT ITS INDEXES ARE ACCURATE INDICATORS OF PRICE MOVEMENTS HOWEVER THESE IMPROVEMENTS ARE BEING MADE AT AN INCREDIBLY RAPID RATE AND THE BLS PRICE INDEXES HAVE NOT ADJUSTED AS RAPIDLY THERE ARE SEVERAL WAYS IN WHICH QUALITY IMPROVEMENTS MAY BE ERRONEOUSLY REPORTED AS PRICE INCREASES FIRST THE HOSPITAL CONSUMER PRICE INDEX USES PERDAY HOSPITAL CHARGES AS ITS UNIT OF MEASUREMENT BUT EVEN PATIENTS WHO ENTER THE HOSPITAL FOR COMPLICATED PROCEDURES SUCH AS OPEN HEART SURGERY TEND TO LEAVE FASTER THAN PATIENTS DID 10 YEARS AGO AND ONCE HOME THEY RECUPERATE FASTER ONE COLORADO SPRINGS HOSPITAL FOR EXAMPLE HAS SHORTENED THE HOSPITAL STAY FOR CORONARY BYPASS PATIENTS BY 20 SINCE 1983 SEVERAL FACTORS HAVE MADE THIS POSSIBLE SURGEONS HAVE IMPROVED THEIR TECHNIQUES HIGHTECH MACHINERY HAS SHORTENED THE TIME NEEDED FOR DIAGNOSIS AND HOSPITALS HAVE EDUCATED THEIR STAFFS TO WATCH FOR IMPORTANT SIGNALS THAT POSTSURGICAL PATIENTS ARE READY TO GET OUT OF BED SOONER THAN WAS ONCE DEEMED PRUDENT FROM THE PATIENT'S POINT OF VIEW THESE CHANGES HAVE IMPROVED THE QUALITY OF THE HOSPITAL EXPERIENCE AND EVEN THOUGH THESE TECHNIQUES MAY HAVE INCREASED THE PRICE OF A SINGLE DAY IN THE HOSPITAL THEY HAVE TENDED TO REDUCE THE OVERALL COST OF THE DESIRED MEDICAL RESULT THUS MANY CRITICS RIGHTLY ARGUE THAT THE BLS HOSPITAL PRICE INDEX SHOULD REFLECT THE PRICE OF A HOSPITAL STAY NOT A HOSPITAL DAY FURTHERMORE VASTLY IMPROVED SURGICAL TECHNIQUES HAVE ELIMINATED THE NEED FOR CONVENTIONAL INPATIENT SURGERY IN MANY CASES TODAY CATARACT SURGERY IS NEARLY ALWAYS DONE ON AN OUTPATIENT BASIS AS ARE MANY TYPES OF ORTHOPEDIC SURGERIES AND MANY OTHER PROCEDURES THAT ONCE REQUIRED A LONG STAY IN THE HOSPITAL AT ONE LOCAL HOSPITAL THE SHARE OF SURGERIES DONE ON AN OUTPATIENT BASIS HAS GROWN FROM 10 OF ALL SURGERIES 10 YEARS AGO TO MORE THAN 60 TODAY HOSPITALS ACROSS THE COUNTRY HAVE EXPERIENCED A SIMILAR SHIFT NOT SURPRISINGLY MOST MEDICAL PROCEDURES DONE ON AN OUTPATIENT BASIS COST CONSIDERABLY LESS THAN THEIR INPATIENT PREDECESSORS TOTAL PATIENT COSTS FOR RECONSTRUCTION OF AN ANTERIOR CRUCIATE LIGAMENT A KIND OF KNEE SURGERY FOR EXAMPLE FELL FROM 13355 TO 3507 AT ONE WEST COAST HOSPITAL WHEN IT BEGAN DOING THE PROCEDURE ON AN OUTPATIENT BASIS THIS IS A 75 PRICE REDUCTION FOR THE SAME MEDICAL RESULT ONCE AN OUTPATIENT PROCEDURE REPLACES THE CONVENTIONAL ONE HOWEVER THE PROCEDURE DROPS OUT OF THE BLS HOSPITAL PRICE INDEX IT MAY BE PICKED UP LATER IN THE OUTPATIENT SERVICES COMPONENT OF THE INDEX BUT IF IT IS IT IS TREATED AS A NEW COMMODITY EVEN THOUGH THE MEDICAL RESULT IS THE SAME TO THE EXTENT THAT THE PROCEDURE BECOMES LESS EXPENSIVE THE PRICE DECREASE IS IN EFFECT LOST AGAIN THIS MEASUREMENT PROBLEM TENDS TO LEAD OFFICIALS TO OVERESTIMATE PRICE CHANGES IN THE INDUSTRY CREATING THE APPEARANCE OF A CRISIS WHERE PERHAPS ONE DOES NOT EXIST MS TREGARTHEN IS EDITOR OF THE MARGIN A MAGAZINE PUBLISHED BY THE UNIVERSITY OF COLORADO AT COLORADO SPRINGS 9308180081 930818 TECHNOLOGY DELL COMPUTER POSTS LOSS FOR QUARTER BACKS AWAY FROM FORECAST OF REBOUND BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DELL COMPUTER CORP CONTINUING ITS RECENT SLUMP REPORTED A BIGGERTHANEXPECTED LOSS FOR THE FISCAL SECOND QUARTER AND BACKED AWAY FROM PROJECTIONS THAT ITS BUSINESS WOULD REBOUND BY YEAR'S END THE AUSTIN TEXAS MAILORDER COMPUTER COMPANY REPORTED A NET LOSS OF 757 MILLION OR 203 A SHARE A YEAR EARLIER IT HAD A PROFIT OF 219 MILLION OR 57 CENTS A SHARE THE COMPANY SAID THE BULK OF ITS LOSS WAS TIED TO 71 MILLION IN CHARGES RELATING TO THE SELLOFF OF EXCESS INVENTORY AND THE COST OF SCRAPPING A DISAPPOINTING NOTEBOOK COMPUTER LINE BUT EVEN WITHOUT THE CHARGES DELL REPORTED AN OPERATING LOSS OF 61 CENTS A SHARE FOR THE QUARTER ENDED AUG 1 THE QUARTERLY LOSS IS THE FIRST FOR DELL SINCE IT BECAME A PUBLIC COMPANY IN 1988 REVENUE DURING THE PERIOD ROSE 53 TO 7006 MILLION FROM 4575 MILLION INVESTORS WARNED BY THE COMPANY LAST MONTH THAT THE RED INK WAS COMING DIDN'T RESPOND NEGATIVELY TO YESTERDAY'S EARNINGS NEWS EVEN THOUGH DELL'S LOSS WAS 18 CENTS A SHARE WIDER THAN THE COMPANY'S PREVIOUS WORSTCASE SCENARIO DELL SHARES ROSE 125 OR 64 TO 20875 IN NATIONAL OVERTHECOUNTER TRADING THE COMPANY IN CONFERENCE CALLS WITH REPORTERS AND ANALYSTS MOVED TO DISTANCE ITSELF FROM ITS PROJECTIONS THAT IT WOULD RETURN TO YEARTOYEAR EARNINGS GROWTH BY THE FISCAL FOURTH QUARTER MICHAEL S DELL THE COMPANY'S CHAIRMAN SAID SUCH FORECASTS NOW MAY BE AGGRESSIVE IN LIGHT OF THE COMPANY'S CURRENT WOES IN ADDITION TO BATTLING AN EXPENSIVE PRODUCT BLUNDER IN NOTEBOOKS THE COMPANY CANCELED AN UPCOMING LINE AND HAS YET TO PRODUCE A MACHINE BASED ON INTEL CORP'S POPULAR 486 MICROPROCESSOR DELL ALSO HAS SUFFERED FROM INTERNAL FORECASTING AND PRICING SYSTEMS THAT HAVEN'T KEPT PACE WITH THE COMPANY'S GROWTH INDEED MR DELL SAID THE COMPANY'S LOSS INCLUDED 19 MILLION FROM THE SALE OF EXCESS INVENTORY MOST OF WHICH DELL HAD TO UNLOAD AT FIRESALE PRICES BECAUSE IT HAD OVERSTOCKED ITS SHELVES MEANWHILE DELL SAID IT HAD A PRODUCT BACKLOG OF 25 MILLION IN PRODUCTS THAT HAD BEEN ORDERED BUT NOT YET SHIPPED BY THE END OF THE QUARTER THOUGH THE COMPANY SAID THE ORDERS HAVE SINCE BEEN FILLED IT SAID THE LOSS OF REVENUE HURT ITS BOTTOM LINE THESE PROBLEMS MR DELL SAYS HAVE FORCED A SHIFT IN PRIORITIES AT THE COMPANY NO LONGER IS THE PRIMARY GOAL BOOSTING REVENUE AND GOBBLING MARKET SHARE INSTEAD HE SAID THE COMPANY NOW IS FOCUSED ON CUTTING COSTS AND INCREASING ITS PROFITABILITY AS ITS PRIMARY CONCERN WE'RE IN A HEAVY CHANGE MODE MR DELL SAID FOR EXAMPLE HE SAID THE COMPANY HAS CHANGED ITS EMPLOYEE INCENTIVE PROGRAM TO REWARD PEOPLE MORE FOR PROFITBOOSTING MOVES THAN THOSE THAT INCREASE SALES AND HE SAID THE COMPANY IS CONSIDERING SCUTTLING SOME OF ITS MONEYLOSING OVERSEAS OPERATIONS TO SAVE CASH STILL ANALYSTS REMAIN CAUTIOUS THEY SAY THE COMPANY'S NEW FOCUS ON PROFITABILITY IS TYPICAL OF COMPANIES THAT FIND THEMSELVES IN THE RED AND WHILE DELL INSISTS THAT ALL THESE CHANGES WILL GENERATE A PROFIT IN THE FISCAL THIRD QUARTER WALL STREET'S NOT YET CONVINCED MANY ANALYSTS WHO FOLLOW THE COMPANY HAVE GROWN WARY ABOUT TRUSTING DELL'S EARNINGS PROJECTIONS CITING THIS QUARTER'S EARNINGS SURPRISE AND THE NEW UNCERTAINTY ABOUT THE COMPANY'S PERFORMANCE IN THE FOURTH QUARTER THE KEY ISSUE GETS BACK TO WHETHER YOU BELIEVE MANAGEMENT SAID KEVIN A MCCARTHY A COMPUTER INDUSTRY ANALYST AT MABON SECURITIES CORP IN NEW YORK I THINK THE DOUBTERS HAVE THE UPPER HAND 9308180080 930818 INTERNATIONAL BRIEF SIEMENS AG CONSORTIUM WINS RAIL ORDER THAT WILL TOTAL 13 BILLION A CONSORTIUM LED BY SIEMENS AG OF GERMANY WON A 22 BILLION MARK 13 BILLION ORDER FOR HIGHSPEED TRAINS FROM GERMANY'S TWO PUBLIC RAILWAYS THE DEUTSCHE BUNDESBAHN AND DEUTSCHE REICHSBAHN SAID THEY CHOSE AN OFFER MADE BY SIEMENS AND AEG AG THE ELECTRONICS UNIT OF DAIMLERBENZ AG AFTER AN INTERNATIONAL COMPETITION DEUTSCHE WAGGONBAU AG AN EASTERN GERMAN CONCERN SAID IT WILL HAVE A LARGE ROLE IN BUILDING THE PASSENGER RAIL CARS MEANWHILE SIEMENS MAKING ANOTHER MOVE INTO EASTERN EUROPE WILL ACQUIRE A 10 STAKE IN RUSSIA'S LARGEST INDUSTRIAL TURBINE MANUFACTURER SIEMENS WILL ACQUIRE THE SHAREHOLDING IN RUSSIA'S AO KALUSHSKIJ TURBINIY ZAVOD OR KTZ THROUGH ITS BIG KWU POWERGENERATION ENGINEERING DIVISION THE TWO WILL TEAM UP FOR A SERIES OF COOPERATIVE VENTURES SIEMENS SAID THE COMPANY DIDN'T PROVIDE ANY SALES OR EARNINGS ESTIMATES 9308180078 930818 RUSSIA AND THE PERILS OF INTERVENTION BY THERESE RAPHAEL MOSCOW ON A SUMMER'S NIGHT SEVERAL HUNDRED NOISY DEMONSTRATORS ARE GATHERED AT TRIUMPHAL SQUARE WAVING MILITANT BANNERS OSTENSIBLY THEY ARE HERE TO HONOR VLADIMIR MAYAKOVSKY STALIN'S FAVORITE POET BUT THEY ARE REALLY HERE TO ATTACK BORIS YELTSIN WITH SPEECHES LACED WITH MAYAKOVSKY'S REVOLUTIONARY VERSE THE GIST THIS NEW RUSSIA HAS CEDED THE GLORY OF THE OLD THE TIME IS RIPE FOR REVOLT POLITICIANS OF ALL STRIPES HERE HAVE SEIZED ON THE RUSSIA FIRST THEME THEIR CAUSE IS THE MORE THAN 25 MILLION ETHNIC RUSSIANS NOW RESIDING OUTSIDE THE BORDERS OF THE RUSSIAN FEDERATION WHO THEY SAY ARE BEING ABANDONED BY A GOVERNMENT MORE BENT ON PLEASING THE WEST THAN ITS OWN PEOPLE UP TO NOW MR YELTSIN AND FOREIGN MINISTER ANDREI KOZYREV HAVE YIELDED TO THIS PRESSURE ONLY RHETORICALLY BUT PRESIDENT CLINTON AND HIS ADVISERS NOW APPEAR TO BE STEERING US POLICY DIRECTLY INTO THIS NATIONALIST HORNET'S NEST WITH A NEW DIRECTIVE NOT YET MADE PUBLIC THAT CASTS THE US IN A MEDIATION ROLE IN CONFLICTS IN THE FORMER SOVIET UNION REFERRED TO AS DIRECTIVE 13 FOR NOW THE POLICY DRAFT HAS CIRCULATED AMONG SOME OF THE US'S ALLIES IN EUROPE THE US WILL INSIST ACCORDING TO THE DOCUMENT THAT ALL PEACEKEEPING OPERATIONS HAVE THE CONSENT OF BOTH PARTIES TO THE CONFLICT THAT PEACEKEEPING FORCES REMAIN ENTIRELY NEUTRAL AND THAT THESE FORCES BE CONTROLLED BY THE UNITED NATIONS ON THE TOPIC OF RUSSIA THE DIRECTIVE ALSO ARGUES THAT RUSSIA SHOULD NOT BE GIVEN PEACEKEEPING FUNCTIONS IN THE REGION UNDER UN AUSPICES AND THAT THE US SHOULD BE PREPARED TO SUPPORT UN PEACEKEEPING OPERATIONS EVEN IF THEY RUN COUNTER TO MOSCOW'S INTERESTS THIS SECTION OF THE DIRECTIVE SEEMS TO BE AN ATTEMPT TO CORRECT AN IMBALANCE IN THE US'S APPROACH TO THE AREA SINCE THE BREAKUP OF THE SOVIET UNION US POLICY HAS BEEN DECIDEDLY RUSSIANCENTERED BUT DEFERENCE TO RUSSIA IN REGIONAL AFFAIRS HAS COME AT A COST UKRAINE HAS DEVELOPED A DEEP DISTRUST TOWARD THE US ITS REFUSAL TO SURRENDER ITS NUCLEAR WEAPONS IS BASED IN PART ON FEARS THAT WASHINGTON IS INSENSITIVE TO ITS SECURITY CONCERNS THE POLICY SHIFT MAY BE DESIGNED TO FEND OFF CHARGES THAT MR CLINTON HAS CEDED TO RUSSIA AMERICAN INFLUENCE IN THIS STRATEGIC REGION THE ADMINISTRATION MAY ALSO BELIEVE THAT THE RUSSIAN GOVERNMENT IS NO LONGER ABLE TO CARRY OUT THE FUNCTION OF REGIONAL PEACEKEEPER SET OUT IN ITS MILITARY DOCTRINE AND OTHER OFFICIAL STATEMENTS THE FACT THAT THE RUSSIAN ARMY HAS TAKEN SIDES IN CONFLICTS ON RUSSIA'S PERIPHERY PARTICULARLY IN MOLDOVA GEORGIA AND TAJIKISTAN HAS PROMPTED CONCERNS THAT BORIS YELTSIN HAS LOST CONTROL OVER RUSSIAN FORCES DEPLOYED OUTSIDE THE RUSSIAN FEDERATION CLINTON ADMINISTRATION OFFICIALS HAVE INSISTED THAT THEIR MOTIVES ARE PURELY ALTRUISTIC BUT HOWEVER WELLINTENTIONED INTRODUCING US AND UN MEDIATION INTO THIS AREA IS MORE LIKELY TO FAN RUSSIAN NATIONALISM THAN TO SUPPRESS IT IN RESPONSE TO NATIONALIST PRESSURES THE YELTSIN GOVERNMENT HAS ARGUED THAT THE INTERNATIONAL COMMUNITY SHOULD DESIGNATE RUSSIA REGIONAL PEACEKEEPER RUSSIAN OFFICIALS HAVE CALLED FOR A RUSSIAN MONROE DOCTRINE MR YELTSIN HIMSELF HAS SUGGESTED THAT RUSSIA BE VESTED WITH SPECIAL POWERS LAST WEEK FORMER ACTING AMBASSADOR IN MOSCOW JAMES COLLINS WAS ASSIGNED TO A NEW POST AS COORDINATOR FOR AFFAIRS IN THE FORMER SOVIET UNION UNDER AMBASSADORATLARGE STROBE TALBOTT WHILE MR COLLINS'S APPOINTMENT IS NOT DIRECTLY RELATED TO DIRECTIVE 13 IT NONETHELESS REFLECTS A POLICY SHIFT TOWARD STEERING EVENTS IN THE REGION MOSCOW'S REACTION WAS NEGATIVE THE RUSSIAN FOREIGN MINISTRY MAINTAINED THAT RUSSIA WAS THE MOST IMPORTANT STABILIZING FORCE IN THE REGION AND DISMISSED SUGGESTIONS OF A GREATER US ROLE EVEN NORMALLY PROWESTERN PAPERS LIKE MOSCOW NEWS HAVE JOINED IN THE CRITICISM OF US POLICIES TOWARD RUSSIA THE DIRECT RISKS OF TRYING TO INTERVENE IN A WILD AND WOOLLY PLACE LIKE THE FORMER SOVIET UNION WERE MADE CLEAR BY THE RECENT MYSTERIOUS DEATH OF FRED WOODRUFF OF THE CIA OUTSIDE TBILISI THE CAPITAL OF FORMER SOVIET GEORGIA THE DEATH PACKS ALL THE INTRIGUE OF A JOHN LE CARRE THRILLER WITH NONE OF THE ANSWERS WOODRUFF WAS OSTENSIBLY IN GEORGIA TO PROVIDE ANTITERRORIST TRAINING TO THE PERSONAL SECURITY GUARDS OF PRESIDENT EDUARD SHEVARDNADZE THE EVENING OF AUG 8 THE CIA MAN WAS SHOT REPORTEDLY WHILE RIDING WITH TWO UNIDENTIFIED FEMALES IN A WHITE NIVA JEEP DRIVEN BY ELDAR GOGOLADZE THE HEAD OF SECURITY FOR MR SHEVARDNADZE MR GOGOLADZE WHO HAS SINCE BEEN SUSPENDED HAD APPARENTLY BEEN DRINKING THE KILLING HAS ALL THE EARMARKS OF AN ASSASSINATION ONE THAT WOULD HAVE REQUIRED INTELLIGENCE INFORMATION FROM WELLPLACED SOURCES THE SHOT WAS CLEAN A SINGLE BULLET TO THE HEAD APPARENTLY NO ONE ELSE IN THE CAR WAS INJURED GEORGIAN FORENSIC EXPERTS WHO EXAMINED THE BODY CLAIM THAT THE SHOT HAD BEEN FIRED FROM INSIDE THE CAR THE DAY WOODRUFF WAS KILLED CIA DIRECTOR JAMES WOOLSEY WAS PAYING AN UNPRECEDENTED VISIT TO HIS COUNTERPART IN MOSCOW FOREIGN INTELLIGENCE SERVICES DIRECTOR YEVGENI PRIMAKOV WEST EUROPEAN SOURCES REPORT THAT THE STATE DEPARTMENT NOW BELIEVES THAT THE TIMING WAS NO COINCIDENCE AND THAT THE KILLING WAS ORGANIZED BY RUSSIAN SECURITY SERVICES IN ORDER TO SEND A CLEAR MESSAGE TO WASHINGTON TO STAY OUT OF REGIONAL CONFLICTS MR WOOLSEY MADE A POINT OF FLYING TO GEORGIA AND COLLECTING THE BODY HIMSELF HE REPORTEDLY TOLD MR SHEVARDNADZE THAT WOODRUFF'S DEATH WOULD NOT AFFECT US RELATIONS WITH GEORGIA THE MOST OBVIOUS QUESTIONS WHO KILLED WOODRUFF AND WHY LEAD DIRECTLY TO DEEPER ONES OF WHAT EXACTLY THE CIA WAS DOING IN GEORGIA WAS THE US MERELY HELPING MR SHEVARDNADZE'S BODYGUARDS DO THEIR JOB OR DOES AMERICAN INVOLVEMENT SOMEHOW EXTEND TO ASSISTING GEORGIAN FORCES BATTLING RUSSIANBACKED ABKHAZ SEPARATISTS ARE THERE SIMILAR US OPERATIONS ELSEWHERE IN THE FORMER SOVIET UNION WHAT IS CERTAIN IN ANY CASE IS THAT MOSCOW IS SET TO VIGOROUSLY OPPOSE WHAT IT SEES AS INTERFERENCE IN A REGION CONSIDERED VITAL TO RUSSIA'S POLITICAL AND SECURITY INTERESTS ON AUG 10 THE RUSSIAN MINISTRY OF DEFENSE NEWSPAPER KRASNAYA ZVEZDA CARRIED A VITUPERATIVE EDITORIAL ON THE CLINTON ADMINISTRATION'S PROPOSALS THE COMMENTARY ARGUED THAT DIRECTIVE 13 WAS MORE INTRUSIVE THAN ANY US POLICY PURSUED DURING THE COLD WAR AND CLAIMED ITS PURPOSE IS TO DESTABILIZE RUSSIA WHILE LURING FORMER SOVIET REPUBLICS AWAY FROM MOSCOW WITH DOLLAR GIFTS IT ALSO ACCUSED WASHINGTON OF EXPLOITING REGIONAL CONFLICTS TO PROVOKE TROUBLE BETWEEN MR YELTSIN AND THE ARMED FORCES DESPITE BEING COUCHED IN TERMS OF MEDIATION THE US POLICY MAY PUT AMERICA IN THE POSITION OF DIRECTLY OPPOSING RUSSIA AND PROVIDING FODDER FOR NATIONALIST FORCES BETTER THEN FOR THE US TO STATE ITS AIMS DIRECTLY AND PURSUE THEM THROUGH BILATERAL PROCESSES THAN UNDER THE DUBIOUS BANNER OF MEDIATION AND PEACEKEEPING OPERATIONS 9308180077 930818 LEISURE & ARTS BOOKSHELF A MAN TALKING TO MEN ABOUT MEN BY BRUCE BAWER JOSEPH EPSTEIN WHO TEACHES ENGLISH AT NORTHWESTERN UNIVERSITY AND EDITS THE QUARTERLY THE AMERICAN SCHOLAR DOESN'T QUITE FIT TODAY'S SCHOLARLY IMAGE WHILE OTHER PROFESSORS KEEP BUSY DETECTING SEXISM IN BEOWULF OR TRACING THE SOURCES OF OBSCURE JACOBEAN DRAMAS HE WRITES WRY HIGHLY ENTERTAINING ESSAYS ON MONEY AND ENVY VANITY AND VULGARITY THE ART OF DIGRESSION AND THE JOYS OF MOVIEGOING NOR DO MR EPSTEIN'S LITERARY ESSAYS CONFORM TO CURRENT ACADEMIC DICTUMS PERTINENT PLAYERS ESSAYS ON THE LITERARY LIFE NORTON 414 PAGES 2495 HIS THIRD SUCH COLLECTION IS THE WORK NOT OF AN ACADEMIC JARGONSLINGER BUT OF A MAN TALKING TO MEN AND TALKING ONE MIGHT ADD ABOUT MEN FOR MR EPSTEIN WHO HERE SURVEYS FIGURES ALL MALE RANGING FROM HAZLITT TO SIDNEY HOOK ATTENDS AS MUCH TO AN AUTHOR'S LIFE AND PERSONALITY AS TO HIS WRITINGS WHY PARTLY BECAUSE AS HE IS AT PAINS TO REMIND US A LITERARY WORK IS NOT AS THE TRENDY THEORISTS WOULD HAVE IT A SEMANTIC GAME BUT A STUDY OF LIFE AN OUTGROWTH OF ITS CREATOR'S EXPERIENCE INDEED MR EPSTEIN WHO SAYS LITERATURE HAS BEEN HIS GREAT TEACHER IS FASCINATED BY WRITERS' LIVES PERSONALITIES AND MORALS OR LACK THEREOF HE CELEBRATES ISAAC BASHEVIS SINGER FOR HIS HUMOR AND HUMILITY WORDSWORTH'S CONTEMPORARY SYDNEY SMITH FOR HIS MERE COMMON SENSE AND MAURICE BARING INTIMATE OF GK CHESTERTON AND HILAIRE BELLOC FOR BEING A GOOD HIGHBROW IN A LESS APPRECIATIVE VEIN MR EPSTEIN BRANDS CARL SANDBURG A HUCKSTER AND PONDERS THREE MEN THE EDUCATOR ROBERT MAYNARD HUTCHINS THE 18THCENTURY FRENCH WRITER CHAMFORT AND THE BLOOMSBURY BELLETRIST DESMOND MACCARTHY WHO WERE BLESSED IN YOUTH WITH EXTRAORDINARY TALENT LOOKS AND OPPORTUNITY BUT WHO HE FEELS ENDED AS FAILURES POOR DESMOND HE SAYS MORE THAN ONCE THE TITLE OF HIS HUTCHINS ESSAY PROMISES READERS THE SAD STORY OF THE BOY WONDER AMONG MR EPSTEIN'S PERENNIAL LESSONS ARE THESE KNOW YOUR LIMITATIONS PRIDE GOES BEFORE A FALL SLOW AND STEADY WINS THE RACE IF THERE ARE TWO ESSAYS HERE ON THE APHORISTS SMITH AND CHAMFORT IT IS BECAUSE HE ADMIRES THE MODESTY OF THEIR WORK SHARES THEIR EYE FOR HUMAN FOIBLES AND THEIR PENCHANT FOR ONELINERS AND BELIEVES WITH THEM THAT THE TRUTHS OF LIFE ARE MANY AND THAT EDUCATION IN THEM IS LIFELONG IN THIS REGARD HE APPROVINGLY QUOTES HENRY JAMES NEVER SAY YOU KNOW THE LAST WORD ABOUT ANY HUMAN HEART SNAPPY QUIPS AND HOMELY ANALOGIES ABOUND IN THESE PAGES CLICHES RUN THROUGH HIS VERSE MR EPSTEIN SAYS OF SANDBURG LIKE CALORIES THROUGH CHEESECAKE A POLITICAL SOCIAL AND CULTURAL CONSERVATIVE HE ROUTINELY WORKS IN DIGS THAT MAY BE ONLY TANGENTIALLY RELATED TO HIS TOPIC ON SANDBURG'S DAYS AS A TRAMP HE WRITES AS A TRAINING FOR WRITERS TRAVELING ABOUT THE COUNTRY ON THE CHEAP WAS NO BAD FORM OF EDUCATION BETTER SURELY THAN GRADUATE SCHOOL AND OF SMITH HE REGRETS HOW SPLENDID IT WOULD BE TODAY TO HEAR HIM ON SUCH SUBJECTS AS THE FEMALE CLERGY THE POLITICS OF THE CHURCH OF ENGLAND CONTEMPORARY ACADEMICS TELEVISION JOURNALISTS AND MUCH MODERN PSYCHOTHERAPY THESE ESSAYS ARE OUTRAGEOUSLY DELICIOUSLY READABLE YET MR EPSTEIN'S COMPULSIVE BREEZINESS CAN BE VEXING RATHER THAN DEVELOP A VITAL POINT HE'LL OFTEN LIGHTEN THINGS UP WITH A JOKE A COLLOQUIALISM A YIDDISHISM OR A DELIBERATELY UNGRAMMATICAL TURN OF PHRASE HE ENDS A PIECE ON THE GRAMMARIANS HW FOWLER AND ERNEST GOWERS AS FOLLOWS FUNNY BUSINESS LANGUAGE LIKE THE MAN SAID THE PAY MAY NOT BE HIGH BUT YOU'RE NEVER OUT OF WORK LIKE AN ATTENTIVE TALKSHOW HOST HE NEVER LETS THE DISCUSSION GET TOO DEEP FOR TOO LONG WHAT GIVES PLAINLY HE REVERES HIGH CULTURE YET HIS CONSTANT USE OF YIDDISH TO UNDERCUT ANY HINT OF CULTURAL AFFECTATION OR EFFETE ANGLOPHILIA SUGGESTS THAT MR EPSTEIN THE SON OF AN IMMIGRANT WITH LITTLE ENGLISH FEELS MORE COMFORTABLE IN THE ROLE OF A SENSIBLE MIDDLEBROW WHO REGARDS AUTHORS AS REGULAR GUYS NOT PARNASSIANS AND WHO TREATS CULTURE AS A COMMODITY ONE ESSAY ABOUT A COURSE HE TAUGHT IS ENTITLED SELLING HENRY JAMES JEWISH AND ANGLOSAXON IDENTITY ARE BIG THEMES ONE PIECE EXAMINES JOSEPH ALSOP AND THE WASP ASCENDANCY ANOTHER PROBES BEN HECHT'S INNER CONFLICT ABOUT HIS JEWISHNESS A THIRD ASKS IF HL MENCKEN WAS ANTISEMITIC ONE REGRET IF READING MR EPSTEIN CAN BE LIKE ENJOYING THE CONVERSATION OF A CHARMING INTELLIGENT FRIEND FOR THIS READER THE CHARM IS SADLY DIMMED BY HIS SURPRISING PREJUDICE AGAINST GAYS OR AS HE PUTS IT ON ONE OCCASION THE GAYIM WHICH IS MANIFESTED IN ODD WAYS AND CONTEXTS SUCH IS THE NATURE OF MR EPSTEIN'S APPEAL THAT MANY WILL BE MORE DISMAYED THAN ANGERED BY THIS ASPECT OF HIS WORK IN ANY EVENT DESPITE HIS PREJUDICE AND WHETHER OR NOT ONE CONCURS WITH HIS EVERY VERDICT MR EPSTEIN MUST BE COUNTED ALONG WITH GUY DAVENPORT GORE VIDAL AND A VERY FEW OTHERS AMONG THE ESSENTIAL LITERARY ESSAYISTS OF OUR TIME 9308180076 930818 CORRECTIONS THE LAST LINE OF ROBERT BARRO'S EDITORIALPAGE FEATURE RETROACTIVITYBUNGLED LARCENY WAS DROPPED FROM SOME EDITIONS YESTERDAY THE COMPLETE SENTENCE SHOULD HAVE READ THE FATE OF THE 18 DEMOCRATIC SENATORS WHO VOTED FOR THE BUDGET PLAN WILL HAVE A LOT TO SAY ABOUT WHETHER POLICIES CONTINUE ALONG THE LINES OF BIG GOVERNMENT AND REDISTRIBUTION OR INSTEAD SEEK TO PROMOTE FREE MARKETS AND ECONOMIC GROWTH 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 9308180075 930818 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN GOVERNMENT INVESTIGATORS SENT QUESTIONNAIRES TO FORMER SOUTH KOREAN PRESIDENTS CHUN DOO HWAN AND ROH TAE WOO FOR INFORMATION ON THEIR ROLES IF ANY IN SUSPECT ARMS DEALS AND MILITARY CONSTRUCTION PROJECTS MR ROH WHO WAS PRESIDENT FROM 1988 UNTIL FEBRUARY HAS BEEN ASKED ABOUT THE MILITARY'S 1991 DECISION TO BUY 120 F16 FIGHTER JETS FROM GENERAL DYNAMICS CORP INSTEAD OF F18 PLANES FROM MCDONNELL DOUGLAS CORP AS HAD BEEN AGREED MR CHUN WHO BECAME PRESIDENT IN 1980 AND PRECEDED MR ROH IS BEING QUESTIONED ON THE PLAN TO CONSTRUCT A MULTIMILLIONDOLLAR DAM TO GUARD AGAINST A FEARED FLOOD UNLEASHED FROM NORTH KOREA IT WASN'T CLEAR IF THE TWO PRESIDENTS WOULD COOPERATE THE INVESTIGATIONS COULD LEAD TO CHARGES OF MISCONDUCT IN OFFICE SEPARATELY THE GOVERNMENT ANNOUNCED STEPS TO CURB PROPERTY SPECULATION INCLUDING TIGHTENED TAX INVESTIGATIONS OF KOREANS SENDING OVERSEAS MORE THAN 3000 AT A TIME OR MORE THAN 10000 A YEAR CHINA SAID URBAN WORKERS' INCOMES WERE GROWING MUCH FASTER THAN THE ECONOMY AND ANNOUNCED MEASURES TO BAR UNPROFITABLE STATEOWNED ENTERPRISES FROM INCREASING WAGES AND BONUSES WHICH THE GOVERNMENT SAYS COULD FUEL INFLATION ONETHIRD OF STATE COMPANIES FAIL TO BREAK EVEN IN ADDITION STATEOWNED COMPANIES THAT DON'T MAKE AN EFFORT TO PAY OFF DEBTS WON'T BE ALLOWED TO GIVE THEIR WORKERS BONUSES WAGES BONUSES AND OTHER CASH PAYMENTS TO WORKERS IN THE FIRST HALF WERE UP ABOUT 217 FROM A YEAR EARLIER FAR AHEAD OF THE ECONOMY'S 14 GROWTH RATE A COMMISSION IN PANAMA FOUND THAT ONE OF THE COUNTRY'S DIPLOMATS IN SPAIN WAS INVOLVED IN AN ATTEMPTED UNAUTHORIZED ARMS SALE POSSIBLY LINKED TO THE WAR IN BOSNIA VICTORIA URIBE THE VICE CONSUL IN BARCELONA ISSUED AT LEAST TWO CERTIFICATES AUTHORIZING ARMS SALES SUPPOSEDLY TO PANAMA BUT THE GOVERNMENT DIDN'T ORDER THE WEAPONS ONE CERTIFICATE WAS FOR A 25 MILLION CZECH SALE OF GUNS AND AMMUNITION THE OTHER WAS FOR A PURCHASE IN AUSTRALIA INVOLVING 1800 SUBMACHINE GUNS MRS URIBE WAS FIRED THIS MONTH UNCONFIRMED NEWSPAPER REPORTS SAID THE SALE WAS AN ATTEMPT TO BREAK THE ARMS EMBARGO ON THE FORMER YUGOSLAVIA ROMANIA'S GOVERNMENT THREATENED TO FIRE THOUSANDS OF STRIKING RAILWAY WORKERS UNLESS THEY IMMEDIATELY END A WEEKOLD WALKOUT THAT HAS PARALYZED ROMANIA'S TRAINS AND ALL BUT CUT OFF NEIGHBORING BULGARIA FROM EUROPE OFFICIALS HAVE REPORTEDLY CONSIDERED USING THE MILITARY TO OPERATE SOME TRAINS THERE WAS NO IMMEDIATE RESPONSE FROM UNION LEADERS A SIMILAR HARDLINE GOVERNMENT STANCE FORCED THOUSANDS OF MINERS TO RETURN TO WORK AFTER A NINEDAY STRIKE THREE OUT OF FOUR AGRICULTURAL JOBS IN EASTERN GERMANY HAVE DISAPPEARED SINCE THE TWO GERMANYS REUNIFIED IN OCTOBER 1990 WHILE OVERALL EMPLOYMENT IN THE REGION HAS FALLEN 36 TO 63 MILLION WORKERS FROM 99 MILLION IN 1989 AGRICULTURE WAS THE HARDEST HIT LOSING 650000 JOBS THE AMOUNT OF FARMLAND IN USE FELL TO 27 MILLION ACRES DOWN 173 FROM THE AVERAGE FOR 19851989 AUSTRALIA'S FEDERAL BUDGET RELEASED YESTERDAY FORECASTS A MODEST 275 GROWTH IN THE ECONOMY FOR THE CURRENT FISCAL YEAR AS THE COUNTRY ENTERS THE THIRD YEAR OF A WEAK RECOVERY THE FORECAST IS A LITTLE STRONGER THAN THE 25 EXPANSION THE PREVIOUS YEAR AUSTRALIA'S TREASURER ALSO PREDICTED SUBDUED GROWTH RELATIVELY LOW INFLATION LOW INTEREST RATES HIGH UNEMPLOYMENT AND HIGHER TAXES OVER THE NEXT SEVERAL YEARS THE GOVERNMENT PLANS TO NARROW ITS BUDGET DEFICIT IN THE NEXT FOUR YEARS TO 4 BILLION OR 11 OF GROSS DOMESTIC PRODUCT MOSTLY THROUGH REVENUE INCREASES THIS YEAR'S DEFICIT WILL WIDEN TO 1089 BILLION OR 38 OF GDP PREVIOUSLY ANNOUNCED PLANNED CUTS IN INDIVIDUAL INCOME TAXES WILL BE MOVED UP TO NOV 1 1993 FROM JANUARY 1994 TO GIVE THE ECONOMY A QUICK NUDGE A SECOND ROUND OF PERSONAL TAX CUTS WAS DEFERRED PROBABLY TO 1998 THE FORMER SOVIET REPUBLICS OF KAZAKHSTAN KYRGYZSTAN AND UZBEKISTAN WERE ADMITTED TO THE PHILIPPINEBASED ASIAN DEVELOPMENT BANK INCREASING THE LENDING INSTITUTION'S MEMBERSHIP TO 56 COUNTRIES THE EUROPEAN COMMUNITY APPROVED 169300 OF EMERGENCY AID TO VENEZUELA TO HELP VICTIMS OF TROPICAL STORM BRET WHICH KILLED AT LEAST 150 PEOPLE LAST WEEK AND LEFT 5000 HOMELESS MORE THAN 100 MEN HAVE APPLIED FOR TWO NEW PARTTIME POSTS AS NORWAY'S OFFICIAL BEAR HUNTERS 9308180074 930818 INTERNATIONAL UK COMMISSION URGES BRITISH GAS TO DIVEST ITSELF OF GAS TRADING BUSINESS BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL LONDON IN A LONGAWAITED REPORT ON THE FUTURE OF BRITISH GAS PLC THE BRITISH MONOPOLIES AND MERGERS COMMISSION RECOMMENDED A DIVESTITURE OF THE UTILITY'S GAS TRADING BUSINESS BY 1997 THE REPORT PRODUCED AS PART OF A YEARSLONG EFFORT TO DIMINISH BRITISH GAS'S MONOPOLY STOPPED SHORT OF ADVOCATING A BREAKUP OF THE UTILITY INTO 12 COMPANIES AS RECOMMENDED BY THE OFFICE OF GAS SUPPLY AN INDUSTRY REGULATOR AND CRITIC OF THE UTILITY KNOWN AS OFGAS BUT NEITHER DID THE REPORT SATISFY BRITISH GAS OFFICIALS WHO INITIALLY OPPOSED ANY BREAKUP AND WHO ALSO HAD SOUGHT HIGHER ALLOWABLE RATES OF RETURN ON ASSETS THAN RECOMMENDED IN THE REPORT IN RESPONSE TO THE REPORT BRITISH GAS CONCEDED THAT A DIVESTITURE OF THE UK GAS TRADING BUSINESS SHOULD BE IN THE INTERESTS OF BG'S SHAREHOLDERS BUT IT SAID THE SEPARATION WOULD BRING ABOUT INCREASED COSTS OF UP TO 130 MILLION US1938 MILLION ANNUALLY DURING THE BREAKUP WHICH IT SAID WOULD BE PASSED ON TO CUSTOMERS TO COMPENSATE FOR THE EXTRA COSTS INVOLVED THE COMMISSION RECOMMENDED A CHANGE IN THE FORMULA PEGGED TO THE RETAIL PRICE INDEX THAT BRITISH GAS USES TO SET ITS RATES FOR HOUSEHOLD CUSTOMERS BRITISH GAS SAID SUCH A PRICEFORMULA CHANGE WOULD INCREASE REVENUE ABOUT 300 MILLION FROM 1994 TO 1997 THE REPORT DIDN'T SPECIFY WHICH BRITISH GAS ASSETS SHOULD BE CONSIDERED PART OF ITS TRADING BUSINESS BUT A BRITISH GAS SPOKESMAN SAID THAT THE UTILITY'S TRANSPORTATION AND STORAGE OPERATIONS WHICH WOULD REMAIN ACCOUNT FOR AT LEAST 80 OF TOTAL ASSETS THE REPORT NOW GOES TO MICHAEL HESELTINE PRESIDENT OF THE UK BOARD OF TRADE WHO IS EXPECTED TO BEGIN HEARINGS ON IT IN EARLY SEPTEMBER BRITISH GAS SAID THAT RECOMMENDATION REPRESENTS A LOWER RETURN THAN THE BUSINESS HAS ACHIEVED SINCE PRIVATIZATION TOOK PLACE IN 1986 IT PREDICTED ADVERSE CONSEQUENCES FOR THE COMPANY'S INVESTMENT PROGRAM IN THE UK AND ITS INTERNATIONAL INVESTMENT PROGRAM BUT SOME ANALYSTS HAD FEARED THE RECOMMENDED RATES WOULD BE EVEN LOWER ON LONDON'S STOCK EXCHANGE SHARES OF BRITISH GAS ENDED THE DAY AT 3275 PENCE A SHARE UP 4 PENCE OFFICIALS OF THE OFFICE OF GAS SUPPLY THE REGULATOR AGENCY HAILED THE REPORT AS A VINDICATION OF THEIR POSITION OFGAS HAD CONCLUDED THAT IT WAS NOT POSSIBLE TO ACHIEVE EFFECTIVE COMPETITION WHILE THE MONOPOLY BUSINESSES OF GAS SUPPLY AND TRANSPORTATION REMAINED UNDER THE SINGLE OWNERSHIP OF BRITISH GAS SAID SIR JAMES MCKINNON THE AGENCY'S DIRECTOR GENERAL SEPARATELY BRITISH GAS SAID IT EXPECTS TO REPORT THAT FOR THE SIX MONTHS ENDED JUNE 30 NET INCOME WILL TOTAL NOT LESS THAN 503 MILLION ON A CURRENT COST BASIS COMPARED WITH 500 MILLION IN THE YEARAGO PERIOD 9308180073 930818 DE ANGELIS WILL RETURN TO PRISON FOR LATEST FRAUD ROCHESTER NY ANTHONY TINO DE ANGELIS THE INFAMOUS COMMODITIES SWINDLER OF THE 1960S WAS SENTENCED TO 21 MONTHS IN PRISON IN HIS LATEST LEGAL TUSSLE FEDERAL JUDGE MICHAEL TELESCA ALSO FINED THE 78YEAROLD MR DE ANGELIS 4000 AND SENTENCED HIM TO THREE YEARS PROBATION DURING WHICH HE IS BANNED FROM THE FOODPROCESSING INDUSTRY MR DE ANGELIS MUST MAKE RESTITUTION OF 881671 TO MAPLE LEAF FOODS INC'S FEARMANS FRESH MEATS UNIT BASED ON HIS CRIMINAL HISTORY THE JUDGE SAID MR DE ANGELIS USES HIS WIT CHARM AND BUSINESS ABILITY TO MANIPULATE SITUATIONS THAT SUIT HIM BEST ALTHOUGH HE HAS BEEN A GREAT TEACHER WHILE INCARCERATED FOR PAST CRIMES HE HAS BEEN A VERY POOR PUPIL IN LEARNING TO CHANGE HIS WAYS AND APPLY HIS BUSINESS ABILITIES IN AN HONEST STRAIGHTFORWARD MANNER MR DE ANGELIS PLEADED GUILTY TO DEFRAUDING FEARMANS THE THIRD COMMODITYRELATED CRIME IN FOUR DECADES FOR THE MAN WHO BECAME KNOWN AS THE SALAD OIL KING HE DEFRAUDED AMERICAN EXPRESS CO AND OTHERS BY SELLING 18 BILLION POUNDS OF NONEXISTENT SALAD OIL 9308180072 930818 LETTERS TO THE EDITOR CLINTON PLAN FOR A HEALTHIER AMERICA MARTIN FELDSTEIN'S JULY 14 EDITORIAL PAGE PIECE WHAT'S WRONG WITH THE CLINTON HEALTH PLAN IS JUST THAT WRONG THE PRESIDENT WOULD NEVER SPONSOR NOR WOULD CONGRESS EVER VOTE FOR A HEALTH PLAN THAT WOULD RAISE MARGINAL TAX RATES BY 12 FOR MOST AMERICANS MR FELDSTEIN'S PORTRAYAL OF THE PRESIDENT'S PLAN IS FUNDAMENTALLY FLAWED HIS DOOM AND GLOOM PREDICTIONS OF WHAT HEALTH REFORM WILL MEAN FOR FAMILIES AND THE ECONOMY HIGHER TAXES HIGHER DEFICITS INEFFICIENT HEALTH CARE DELIVERY AND RESTRICTED DOCTORPATIENT DECISIONMAKING WILL BE THE INEVITABLE RESULTS IF WE DON'T REFORM HEALTH CARE NOT IF WE DO MR FELDSTEIN SUGGESTS THE CLINTON PLAN WILL INCLUDE A 10 TAX ON FAMILY INCOME AND WILL RAISE INCOME TAXES 3 THE PRESIDENT HAS NEVER SUGGESTED A 10 TAX ON FAMILY INCOME AND HAS STATED REPEATEDLY THERE WILL BE NO INCOMETAX HIKE MR FELDSTEIN SUGGESTS MOST FAMILIES THOSE WITH INCOMES OF 50000 OR LESS WOULD PAY MORE UNDER PAYROLLBASED FINANCING HE WOULD HAVE DONE WELL TO READ THE JUNE 1 WALL STREET JOURNAL ARTICLE THAT EVALUATED A SIMILAR FINANCING APPROACH AND CAME TO THE OPPOSITE CONCLUSION FAMILIES WITH INCOMES OF 50000 OR BELOW WILL PAY LESS THE DRIVING THEORY BEHIND MARKETORIENTED HEALTH CARE REFORM IS THAT WHEN PROVIDERS ARE FORCED TO COMPETE ON COST AND QUALITY THE HEALTH CARE INDUSTRY WILL BE DRIVEN TOWARD GREATER EFFICIENCY AND MORE COSTEFFECTIVE USES OF RESOURCES IN TODAY'S HEALTH CARE SYSTEM THE MORE TESTS AND PROCEDURES DOCTORS AND HOSPITALS DO THE MORE THEY GET PAID UNDER THE CLINTON PLAN HEALTH PLANS WOULD BE PAID A SET AMOUNT PER ENROLLEE FORCING THEM TO MANAGE HEALTH CARE DELIVERY MORE EFFICIENTLY AND EFFECTIVELY AND ENCOURAGING COSTEFFECTIVE PRIMARY AND PREVENTIVE CARE TO AVOID HAVING TREATABLE ILLNESSES TURN INTO COSTLY EMERGENCIES THE CLINTON PLAN BRINGS THE FORCE OF THE MARKETPLACE TO HEALTH CARE GIVING CONSUMERS GREATER CHOICES AND FORCING PLANS TO COMPETE FOR THE FIRST TIME ON COST AND QUALITY FAILING TO REFORM THE HEALTH CARE SYSTEM WILL DEFINITELY RESULT IN AN INCREASED BUDGET DEFICIT EXPLODING MEDICAL COSTS AND THEIR EFFECT ON MEDICARE AND MEDICAID SPENDING HAVE MADE IT INCREASINGLY DIFFICULT TO LOWER THE DEFICIT THE ONLY WAY TO CUT MEDICARE AND MEDICAID SPENDING IS TO PUT THEM UNDER AN ENFORCEABLE BUDGET THE ONLY WAY TO CAP THOSE PROGRAMS WITHOUT DRIVING BUSINESS AND FAMILY HEALTH CARE COSTS OUT OF SIGHT THROUGH COST SHIFTING IS TO BRING PRIVATE SECTOR SPENDING UNDER A BUDGET AS WELL CAPPING THE OVERALL GROWTH IN ALL HEALTH CARE SPENDING THAT IS PRECISELY WHAT MR CLINTON PROPOSES TO DO THE SOCALLED APLAN MR FELDSTEIN PROPOSES IS ESSENTIALLY A TAX ON THE SICK UNDER THE PLAN ALL AMERICANS PAY THE 10 PAYROLL TAX HE DERIDES AND AN ADDITIONAL 4 PAYROLL TAX TO FINANCE SUBSIDIES HE PROPOSES THAT THOSE WHO DON'T NEED HEALTH CARE GET MONEY BACK WHILE THOSE WHO DO NEED HEALTH CARE WOULD PAY 14 OF THEIR INCOME THINK ABOUT THAT A 14 PAYROLL TAX ON A MIDDLE CLASS FAMILY THAT HAS A SON WHO BREAKS HIS ARM AND A DAUGHTER WHO NEEDS HER TONSILS OUT A 14 TAX ON A SMALLBUSINESS OWNER WHO GETS IN A CAR ACCIDENT A 14 TAX ON A SECRETARY WITH LIVER DISEASE OR A COUPLE WITH A BABY AND THAT'S BEFORE THE SIGNIFICANT COPAYMENTS AND DEDUCTIBLES HE RECOMMENDS TO BRING COSTCONSCIOUSNESS TO HEALTH CARE THE PRESIDENT'S PLAN WILL GUARANTEE HEALTH CARE SECURITY COMPREHENSIVE BENEFITS AND HIGH QUALITY HEALTH CARE AT A PRICE ALL AMERICANS CAN AFFORD 9308180071 930818 MEDICINE PATIENTS PREFER SMALL PROVIDERS OF HEALTH CARE BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL PATIENT SATISFACTION MAY BE THE PRICE TO BE PAID FOR THE HEALTHCARE INDUSTRY'S TREND TOWARD BIG COSTEFFECTIVE ORGANIZATIONS IN A STUDY PATIENTS RATED THE CARE THEY RECEIVED FROM DOCTORS IN SMALL PRACTICES MUCH HIGHER THAN THAT PROVIDED IN LARGE GROUP PRACTICES HEALTH MAINTENANCE ORGANIZATIONS AND SIMILAR BIG PREPAID PLANS WHICH ARE CONSIDERED MODELS FOR DELIVERY OF QUALITY CARE AT LOWER COST WERE RATED LOWER THAN FEEFORSERVICE PLANS RESEARCHERS SAID THE FINDINGS HOIST A CAUTION FLAG FOR THE CLINTON ADMINISTRATION'S HEALTHREFORM PACKAGE WHICH IS EXPECTED TO ENCOURAGE CONSUMERS TO SEEK CARE FROM LARGE PREPAID HEALTH PLANS MUCH AS MANY BIG EMPLOYERS HAVE BEEN DOING FOR THE PAST FEW YEARS WE ARE MOVING AWAY FROM SMALL MEDICINE TO THESE BIG SEARS ROEBUCK TYPE OF OPERATIONS SAID JOHN WARE SENIOR SCIENTIST AT THE HEALTH INSTITUTE NEW ENGLAND MEDICAL CENTER BOSTON THE PUBLIC CLEARLY IS MORE SATISFIED WITH SOMETHING DIFFERENT OTHER RESEARCH HAS SHOWN THAT UNHAPPY PATIENTS TEND NOT TO FOLLOW THEIR DOCTORS' ORDERS ON MEDICATIONS AND OTHER TREATMENTS MOST OF THE DATA REPORTED IN THE STUDY WERE GATHERED IN 1986 BEFORE MANAGED CARE AND OTHER COSTCONTAINMENT EFFORTS GAINED A FOOTHOLD IN THE MARKETPLACE BUT DR WARE SAID FOLLOWUP SURVEYS TAKEN IN 1990 YIELDED SIMILAR RESULTS COSTCONTAINMENT PRESSURES HAVE INCREASED SINCE 1990 AND THE DIFFERENCES IN SATISFACTION ARE LIKELY TO HAVE INCREASED HE SAID THE REPORT WAS CRITICIZED BY THE GROUP HEALTH ASSOCIATION OF AMERICA AN HMO TRADE GROUP IN WASHINGTON DC WHICH CITED MORE THAN A DOZEN MORERECENT SURVEYS THAT IT SAID SHOW HMO MEMBERS ARE AT LEAST AS SATISFIED WITH THEIR CARE AS PATIENTS IN OTHER SETTINGS THE GROUP ALSO SAID THAT AMONG OTHER FLAWS THE STUDY DIDN'T ASK ABOUT THE OUTOFPOCKET COSTS AND THE PAPERWORK FOR INSURANCE CLAIMS REQUIRED BY VISITS TO FEEFORSERVICE PRACTICES PART OF THE APPEAL OF HMOS IS THE ELIMINATION OF CLAIMS PAPERWORK AND REDUCTION OF COSTS TO PATIENTS HMO ENROLLMENT HAS GROWN TO 41 MILLION MEMBERS TODAY FROM 19 MILLION IN 1985 SAID SAMUEL H HAVENS CHAIRMAN OF THE TRADE GROUP AND SENIOR VICE PRESIDENT AT PRUDENTIAL INSURANCE CO OF AMERICA A LOT OF PEOPLE HAVE JOINED THESE PLANS AND HAVE DECIDED HOW SATISFIED THEY ARE NOT ONLY WITH JOINING BUT WITH REMAINING IN THEM HE SAID THE REPORT ON PATIENT SATISFACTION IS PART OF THE MEDICAL OUTCOMES STUDY A 12 MILLION PROJECT TO EVALUATE THE IMPACT OF REIMBURSEMENT PHYSICIAN SPECIALTY AND PRACTICE SETTING ON QUALITY OF CARE THE PROJECT IS PRINCIPALLY FUNDED BY THE HENRY J KAISER FOUNDATION WHICH STUDIES HEALTHCARE ISSUES FOR THIS REPORT RESEARCHERS ADMINISTERED AT THE TIME OF AN OFFICE VISIT A NINEITEM QUESTIONNAIRE TO 17671 PATIENTS OF 367 DOCTORS IN SOLO PRACTICE LARGE SPECIALTY GROUPS AND HMOS IN BOSTON CHICAGO AND LOS ANGELES HALF THE PATIENTS ALSO FILLED OUT A MORE DETAILED SURVEY THE STUDY FOUND THAT PATIENTS WERE PARTICULARLY DISSATISFIED WITH HOW LONG THEY HAD TO WAIT TO GET APPOINTMENTS IN LARGE PREPAID PRACTICES AND HMOS AND WITH HOW LONG IT TOOK TO GET THROUGH TO DOCTOR'S OFFICES BY TELEPHONE THESE COMPLAINTS REFLECT CONCERN ABOUT WAYS PREPAID PLANS RESTRICT ACCESS TO SERVICES TO CONTAIN COSTS RESEARCHERS SAID THESE THINGS ARE VERY IMPORTANT TO PATIENTS SAID HAYA RUBIN AN INTERNIST AT JOHNS HOPKINS MEDICAL INSTITUTIONS BALTIMORE AND THE LEAD AUTHOR OF THE REPORT WHICH APPEARS IN TODAY'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION WHILE SUCH ISSUES DON'T TELL THE FULL STORY ON QUALITY OF CARE SHE ADDED THEY ARE A WAY THAT PATIENTS JUDGE THE REST OF THEIR CARE BUT THE STUDY DID SHOW THAT ONE HMO FARED AS WELL AS SOLO PRACTITIONERS IN THESE AREAS SHOWING THAT IT IS POSSIBLE TO IMPLEMENT COSTCONTAINMENT IN A WAY THAT IS ACCEPTABLE TO THE PUBLIC SAID DR WARE NONE OF THE HEALTH PROVIDERS WAS IDENTIFIED OVERALL 55 OF PATIENTS RATED THEIR VISITS TO DOCTORS AS EXCELLENT 32 VERY GOOD 11 GOOD AND 2 FAIR OR POOR SOME 64 OF PATIENTS OF FEEFORSERVICE SOLO PRACTITIONERS RATED THEIR VISITS AS EXCELLENT COMPARED WITH 48 IN LARGE GROUP PRACTICES AND 49 IN HMOS IN ANY EVENT THE HMO TRADE GROUP AND THE STUDY'S AUTHORS AGREE THAT PATIENT SATISFACTION IS DESTINED TO PLAY AN INFLUENTIAL ROLE IN RESHAPING HEALTH CARE SATISFACTION MEASURES WILL BE INCLUDED ON REPORT CARDS THAT EMPLOYERS HMOS AND CLINTON ADMINISTRATION HEALTH REFORMERS ALL EXPECT WILL BE USED TO HELP CONSUMERS JUDGE AND CHOOSE HEALTH PLANS XEROX CORP IS AMONG SEVERAL US EMPLOYERS THAT ASK EMPLOYEES TO GRADE THEIR HEALTH SERVICES BOTH TO GUIDE PLAN ADMINISTRATORS TO SHORE UP WEAK AREAS AND TO PROVIDE EMPLOYEES WITH DATA TO AID THEIR SELECTION OF PLANS MANY HMOS ALREADY ROUTINELY SURVEY MEMBERS WITH QUESTIONNAIRES DEVELOPED IN PART BY DR WARE AND HIS COLLEAGUES AND USE THE RESULTS TO IMPROVE PERFORMANCE TAKING THIS WHOLE AREA SERIOUSLY IS GOING TO BE CRITICAL TO THE SUCCESS OF ANY HEALTH REFORMWHATEVER IT IS SAYS HELEN DARLING MANAGER OF HEALTHCARE STRATEGY AND PROGRAMS AT XEROX WITHOUT VERY HIGH LEVELS OF PATIENT SATISFACTION WITH THEIR PROVIDERS WE ARE WASTING MONEY 9308180070 930818 BUSINESS BRIEFS NORTHERN TELECOM LTD AND BRAZILIAN ENGINEERING COMPANY SCHAHIN CURY ENGENHARIA COMERCIO SIGNED A 433 MILLION CONTRACT TO PROVIDE A FIBEROPTIC TRANSMISSION SYSTEM FOR EMBRATEL BRAZIL'S LONGDISTANCE CARRIER DEVELOPERS DIVERSIFIED REALTY CORP A REALESTATE INVESTMENT TRUST COMPLETED THE PURCHASE OF A SHOPPING MALL IN MT VERNON ILL FOR 112 MILLION METPRO CORP COMPLETED ITS ACQUISITION OF THE MEFIAG FILTER AND PUMP BUSINESS FROM SYSTEMS ENGINEERING & MANUFACTURING CORP FOR ABOUT 6 MILLION S&K FAMOUS BRANDS INC PLANS TO OPEN TWO MENSWEAR MEGA CENTERS IN THE CHICAGO MARKET IN OCTOBER THE DISCOUNT MEN'S CLOTHING RETAILER HAS 140 STORES IN 25 STATES RIVERSIDE GROUP INC WILL SELL ITS LIFE INSURANCE AND MORTGAGE SERVICING UNITS THE COMPANY BELIEVES ITS LENDERS WILL BE COOPERATIVE WITH ITS EFFORTS TO SELL THE UNITS 9308180068 930818 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 ATLANTIC CITY ELECTRIC CO 75 MILLION OF FIRST MORTGAGE BONDS DUE AUG 1 2013 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY GOLDMAN SACHS & CO IT WAS REOFFERED AS 6625S AT 99654 TO YIELD 6656 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS PRICED AT A SPREAD OF 37 BASIS POINTS ABOVE TREASURYS ARE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP ATLANTIC CITY ELECTRIC IS A UNIT OF ATLANTIC ENERGY INC ATLANTIC CITY ELECTRIC CO 75 MILLION OF FIRST MORTGAGE BONDS DUE AUG 1 2028 WON IN A COMPETITIVE BID BY UNDERWRITERS LED BY BEAR STEARNS & CO ACCORDING TO MCM CORPORATEWATCH THE BONDS WERE REOFFERED AS 7S AT 9882 TO YIELD 7091 THE BONDS NONREFUNDABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS MASCO CORP 200 MILLION OF DEBENTURES DUE AUG 15 2013 PRICED AS 7125S AT 99375 TO YIELD 7184 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 87 BASIS POINTS ABOVE TREASURYS RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC NATIONSBANK CORP 950 MILLION TWOPART ISSUE OF SUBORDINATED NOTES PRICED BY UNDERWRITERS LED BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 400 MILLION OF SENIOR NOTES DUE AUG 15 1996 WAS PRICED AS 475S AT 9975 TO YIELD 4842 THE NOTES WERE PRICED AT A SPREAD OF 46 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 550 MILLION OF SUBORDINATED NOTES DUE AUG 15 2003 WAS PRICED AT PAR TO YIELD 65 THE NOTES WERE PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE RATED BAA1 BY MOODY'S AND SINGLEAMINUS BY S&P NEW ENGLAND EDUCATION LOAN MARKETING CORP 100 MILLION 1993 SERIES G STUDENTLOAN REFUNDING BONDS PRICED BY A SMITH BARNEY SHEARSON INC GROUP INCLUDED IN THE OFFERING ARE THE FOLLOWING 47S PRICED AT PAR WHICH ARE TO YIELD 470 IN 1998 5S PRICED AT PAR WHICH ARE TO YIELD 5 IN 2000 AND 52S PRICED AT PAR WHICH ARE TO YIELD 52 IN 2002 MOODY'S HAS RATED THE BONDS SINGLEA1 S&P HAS ASSIGNED A SINGLEAMINUS RATING AND FITCH INVESTORS SERVICE INC HAS ASSIGNED A SINGLEA RATING NEW YORK TELEPHONE CO 200 MILLION OF NOTES DUE SEPT 1 2003 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY CITICORP SECURITIES MARKETS INC REOFFERED AS 5875S AT 98655 TO YIELD 6056 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 365 BASIS POINTS ABOVE TREASURYS AND ARE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P NEW YORK TELEPHONE IS A UNIT OF NYNEX CORP NEW YORK TELEPHONE CO 100 MILLION OF NOTES DUE SEPT 1 1998 PRICED AS 525S AT 99531 TO YIELD 5358 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 30 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO NEXTEL COMMUNICATIONS INC 300 MILLION OF SENIOR DISCOUNT NOTES DUE SEPT 1 2003 PRICED AT 5705 TO YIELD 115 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB3 BY MOODY'S AND TRIPLECMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO PHILADELPHIA ELECTRIC CO 225 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE AUG 15 1998 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY LEHMAN BROTHERS INC IT WAS REOFFERED AS 5375S AT 9872 TO YIELD 544 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 40 BASIS POINTS ABOVE TREASURYS THE UTILITY ALSO HELD A COMPETITIVE BID FOR 75 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE AUG 15 2005 WHICH WAS WON BY A GROUP OF DEALERS LED MORGAN STANLEY & CO IT WAS REOFFERED AS 6375S AT 99725 TO YIELD 6408 ACCORDING TO MCM CORPORATEWATCH THE BONDS CALLABLE IN FIVE YEARS WERE PRICED AT A SPREAD OF 72 BASIS POINTS ABOVE TREASURYS BOTH TRANCHES ARE RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P PHILADELPHIA ELECTRIC CO 200 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE AUG 15 2023 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY CITICORP SECURITIES MARKETS INC IT WAS REOFFERED AS 7125S AT 98425 TO YIELD 7254 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 98 BASIS POINTS ABOVE TREASURYS THE BONDS ARE RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P PHILIPS ELECTRONICS NV 500 MILLION TWOPART ISSUE OF NOTES PRICED BY UNDERWRITERS LED BY GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 250 MILLION OF NOTES DUE AUG 15 2003 WAS PRICED AS 675S AT 99725 TO YIELD 6788 THE NOTES WERE PRICED AT A SPREAD OF 110 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 250 MILLION OF DEBENTURES DUE AUG 15 2013 WAS PRICED AS 725S AT 99154 TO YIELD 7331 THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 105 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE NONCALLABLE AND RATED BAA1 BY MOODY'S AND TRIPLEB BY S&P TRANSTEXAS GAS CORP 500 MILLION OF SENIOR SECURED NOTES DUE SEPT 1 2000 PRICED AT PAR TO YIELD 105 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB1 BY MOODY'S AND DOUBLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JEFFERIES & CO TORONTODOMINION BANK 150 MILLION OF SUBORDINATED NOTES DUE AUG 15 2008 ISSUED BY THE CANADIAN BANK'S NEW YORK BRANCH AND PRICED AS 65S AT 9972 TO YIELD 653 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 82 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO WESTVACO CORP 150 MILLION OF DEBENTURES DUE AUG 15 2023 PRICED AS 7S AT 9905 TO YIELD 7077 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO MICRO WAREHOUSE INC 27 MILLION COMMON SHARES PRICED AT 21 APIECE THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES ONE MILLION SHARES ARE BEING OFFERED BY THE COMPANY AND 17 MILLION BY SELLING SHAREHOLDERS DELAWARE TRANSPORTATION AUTHORITY 103 MILLION 1993 SERIES A TRANSPORTATIONSYSTEM SENIOR REVENUE BONDS PRICED BY A DILLON READ & CO GROUP YIELDS RANGE FROM 32 IN 1995 TO 54 IN 2012 AND 2014 MOODY'S IS EXPECTED TO RATE THE BONDS SINGLEA1 AND S&P IS EXPECTED TO ASSIGN A DOUBLEAMINUS RATING PROVINCE OF NEW BRUNSWICK CANADA 200 MILLION OF DEBENTURES DUE AUG 15 2013 PRICED AS 675S AT 99389 TO YIELD 6806 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 50 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC TOYOTA MOTOR CORP 467 MILLION OF AUTOMOBILELOAN ASSETBACKED SECURITIES PRICED THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP ACCORDING TO MCM CORPORATEWATCH THE CERTIFICATES WITH A 134YEAR AVERAGE LIFE WERE PRICED AT 39 AT 99 27/32 TO YIELD 4055 A 375BASISPOINT SPREAD ABOVE THE US TREASURY'S 4625S NOTE OF DECEMBER 1994 THE SECURITIES ISSUED THROUGH TOYOTA AUTO RECEIVABLES 1993A GRANTOR TRUST WERE RATED TRIPLEA BY BOTH MOODY'S AND S&P BASED ON A 7 SUBORDINATE CLASS OF CERTFIFICATES THE LOANS BACKING THE TRANSACTION WERE SOLD BY TOYOTA UNIT TOYOTA MOTOR CREDIT RECEIVABLES CORP THE LOAN SERVICER IS TOYOTA MOTOR CREDIT CORP UNIVERSITY SUPPORT SERVICES INC 133 MILLION OF STUDENTLOAN ASSETBACKED CERTIFICATES PRICED IN FOUR PARTS THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC THE 447 MILLION IN CLASS A1 CERTIFICATES WITH A 28YEAR AVERAGE LIFE WERE PRICED AT PAR TO FLOAT 30 BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE TO A 14 CAP THE 486 MILLION IN CLASS A2 CERTIFICATES WITH A 69YEAR AVERAGE LIFE WERE PRICED AT PAR TO FLOAT 65 BASIS POINTS ABOVE ONEMONTH LIBOR TO A 15 CAP THE 264 MILLION IN CLASS A3 CERTIFICATES WITH A 113YEAR AVERAGE LIFE WERE PRICED AT PAR TO FLOAT 110 BASIS POINTS ABOVE THE 30DAY COMMERCIALPAPER RATE TO A 17 CAP THE 133 MILLION IN SUBORDINATE CLASS B CERTIFICATES WITH A THREEYEAR AVERAGE LIFE WERE PRICED AT PAR TO FLOAT 250 BASIS POINTS ABOVE THE 30DAY COMMERCIALPAPER RATE WITH A 65 FLOOR AND A 18 CAP THE CLASS A CERTIFICATES ARE EXPECTED TO RECEIVE TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P THE CLASS B CERTIFICATES ARE EXPECTED TO RECEIVE A SINGLEA RATING EUROPEAN INVESTMENT BANK SUPRANATIONAL 500 MILLION CANADIAN DOLLARS OF 6625 EUROBONDS DUE SEPT 15 2000 AT ISSUE PRICE 100215 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD AND SALOMON BROTHERS INTERNATIONAL LTD REOFFERED AT 9864 TO YIELD 688 A MARGIN OF 12 BASIS POINTS OVER INTERPOLATED CANADIAN GOVERNMENT BOND CURVE FEES 1875 POINTS STATE BANK OF NEW SOUTH WALES AUSTRALIA C150 MILLION OF 75 EUROBONDS DUE SEPT 22 2003 AT ISSUE PRICE 100916 VIA MERRILL LYNCH INTERNATIONAL LTD REOFFERED AT 99266 TO YIELD 761 A MARGIN OF 52 BASIS POINTS ABOVE CANADIAN GOVERNMENT BOND DUE JUNE 2003 GUARANTOR STATE OF NEW SOUTH WALES FEES TWO POINTS ONTARIO CANADIAN PROVINCE 255 MILLION OF 6875 EUROBONDS DUE SEPT 15 2000 AT ISSUE AND REOFFER PRICE 99069 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD AND SALOMON BROTHERS INTERNATIONAL LTD BONDS YIELD 705 A MARGIN OF 35 BASIS POINTS OVER COMPARABLE BRITISH GILT FEES 03 POINT COMPAGNIE BANCAIRE FRANCE 200 MILLION ECU OF 65 EUROBONDS AT ISSUE PRICE 10115 DUE SEPT 17 1999 VIA BANQUE PARIBAS REOFFERED AT 996 TO YIELD 6583 A SPREAD OF 32 BASIS POINTS ABOVE FRENCH GOVERNMENT ECU BOND DUE 1998 FEES 1875 POINTS INTERNATIONALE NEDERLANDEN BANK NV NETHERLANDS 400 MILLION DUTCH GUILDERS OF 7 EUROBONDS DUE SEPT 17 2008 AT ISSUE PRICE 1014 FOR OWN ACCOUNT REOFFERED AT 10075 TO YIELD 6918 A SPREAD OF 29 BASIS POINTS ABOVE DUTCH STATE LOAN DUE SEPTEMBER 2007 FEES ONE POINT FINNISH EXPORT CREDIT LTD FINNISH AGENCY 200 MILLION OF FLOATINGRATE EURONOTES DUE AUG 29 1997 AT ISSUE AND REOFFER PRICE 9980 VIA MERRILL LYNCH INTERNATIONAL LTD INTEREST PAYABLE QUARTERLY AT THREEMONTH LONDON INTERBANK OFFERED RATE FLAT FEES 017 POINT BOMBRIL SA BRAZIL 150 MILLION OF 8 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE AUG 26 1998 AT ISSUE AND REOFFER PRICE PAR VIA BANUQE INDOSUEZ ONE 93 MILLION TRANCHE OF CLASS A NOTES WITH WARRANTS TO PURCHASE PREFERRED SHARES OF COMPANY AT EXERCISE PRICE 3035 PER 1000 PREFERRED SHARES A PREMIUM OF 15 OVER YESTERDAY'S CLOSING SHARE PRICE SECOND 57MILLION TRANCHE OF CLASS B NOTES PLACED WITH BOMBRIL'S PRINCIPAL SHAREHOLDERS CLASS B WARRANTS TO PURCHASE ORDINARY SHARES OF BOMBRIL AT EXERCISE PRICE 3035 PER 1000 ORDINARY SHARES A PREMIUM OF 15 OVER YESTERDAY'S CLOSING SHARE PRICE PUT OPTION ON ALL BONDS AFTER THREE YEARS AT 90 FEES 275 EACH 50000 CLASS A BOND HAS 1650 WARRANTS FOR PREFERRED SHARES ATTACHED INTEREST PAYABLE SEMIANNUALLY STRUCTURED TERM ADJUSTABLE RATE SECURITIES IV SPECIALPURPOSE VEHICLE 120 MILLION OF MORTGAGEBACKED FLOATINGRATE EURONOTES DUE SEPT 15 1996 AT ISSUE AND REOFFER PRICE PAR VIA KIDDER PEABODY SECURITIES CO BONDS SECURED ON MORTGAGERELATED SECURITIES ORIGINATED IN THE US INTEREST PAYABLE QUARTERLY AT THREEMONTH LIBOR FOR DOLLARS PLUS 50 BASIS POINTS SUBJECT TO MAXIMUM COUPON 12 REDEMPTION AT ISSUER'S OPTION IN LIMITED CIRCUMSTANCES ON EACH INTEREST PAYMENT DATE FROM SEPT 15 1995 FEES UNDISCLOSED FUJITA USA CORP JAPANESE PARENT 50 MILLION OF FLOATINGRATE EURONOTES DUE SEPT 10 1997 AT ISSUE AND REOFFER PRICE PAR VIA SAKURA FINANCE INTERNATIONAL LTD INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH LIBOR PLUS 325 BASIS POINTS GUARANTOR SAKURA BANK LTD FEES 02 POINT BAYERISCHE VEREINSBANK AG GERMANY 150 MILLION SWISS FRANCS OF 4625 SUBORDINATED PUBLIC BONDS DUE SEPT 29 2003 PRICED AT 102375 VIA CREDIT SUISSE AND BANK VON ERNST & CIE FEES 2375 POINTS COUNCIL OF EUROPE RESETTLEMENT FUND SUPRANATIONAL 150 MILLION MARKS OF 7 EUROBONDS DUE SEPT 15 1995 AT ISSUE PRICE 1007 VIA TRINKAUS & BURKHARDT KGAA REDEMPTION AT ISSUER'S CHOICE EITHER AT BONDS' NOMINAL AMOUNT OF 10000 MARKS OR IN DOLLARS AT 6000 PER BOND PUT OPTION EXERCISABLE AT ANY TIME AT PRICE 16666 PUT OPTION SUBJECT TO KNOCKOUT CLAUSE UNTIL AUG 21 1995 IF FRANKFURT DOLLAR MIDPRICE EXCEEDS 185 MARKS ON TWO CONSECUTIVE BUSINESS DAYS AT WHICH POINT BONDS REDEEMABLE ONLY IN MARKS FEES 13 POINTS MARUBENI INTERNATIONAL FINANCE PLC JAPANESE PARENT FIVE BILLION YEN OF FLOATINGRATE EURONOTES DUE AUG 25 1994 AT ISSUE PRICE PAR VIA SANWA INTERNATIONAL PLC INTEREST PAYABLE QUARTERLY AT 10 BASIS POINTS ABOVE THREEMONTH LIBOR KEEPWELL AGREEMENT IS WITH MARUBENI CORP FEES UNDISCLOSED NEXTEL COMMUNICATIONS INC HAS SOLD 525855000 FACE AMOUNT OF SENIOR REDEEMABLE DISCOUNT NOTES DUE 2003 RAISING GROSS PROCEEDS OF 300 MILLION AN ITEM IN YESTERDAY'S NEW SECURITIES ISSUES COLUMN INCORRECTLY REPORTED THE FACE AMOUNT OF THE OFFERING AS 300 MILLION 9308180067 930818 REVIEW & OUTLOOK EDITORIAL ASIDES FIDEL WITHOUT FEELING THREE WEEKS AGO FIDEL CASTRO RECOGNIZED CUBANS' PREFERENCE FOR CAPITALIST DOLLARS OVER SOCIALIST PESOS BY LEGALIZING USE OF THE DOLLAR BY CUBAN CITIZENS LAST THURSDAY HE WAS BACK ON THE STUMP ANNOUNCING THAT THE SOCIALIST TOOTH FAIRY WAS ALIVE AND WELL AFTER ALL AT A NEWS CONFERENCE IN CARTAGENA COLOMBIA FIDEL TOLD A RAPT AUDIENCE CAPITALISM IS A FAILURE SOCIALISM IS BEGINNING AND WE FEEL HONORED TO BELONG TO THIS STAGE OF HISTORY SOMEHOW WE GET THE FEELING THAT FIDEL'S HEART ISN'T IN THE CHARADE ANYMORE AND THAT ACTIONS ALWAYS SPEAK LOUDER THAN WORDS 9308180066 930818 COOPERS TO PRUNE PARTNERSHIP RANKS ASKING 160 TO LEAVE OR RETIRE THIS YEAR BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK COOPERS & LYBRAND IS PRUNING ITS PARTNERSHIP RANKS AS IT ATTEMPTS TO CUT COSTS AND REMAIN COMPETITIVE AMID A GENERAL SLOWDOWN IN THE ACCOUNTING INDUSTRY COOPERS THE US'S FIFTHLARGEST ACCOUNTING FIRM SAID 160 PARTNERS OR ABOUT 12 OF THE TOTAL HAVE BEEN ASKED TO LEAVE OR WILL TAKE EARLY RETIREMENT DURING THE YEAR ENDING SEPT 30 BUT COOPERS SAID IT ALSO PLANS TO HIRE OR PROMOTE ABOUT 130 NEW PARTNERS SO THAT ITS OVERALL PARTNERSHIP TOTAL WILL BE REDUCED BY ONLY ABOUT 30 TO 40 PEOPLE FROM 1300 AT THE BEGINNING OF THE FISCAL YEAR ALTHOUGH THE NET DROP IS SMALL ACCOUNTING EXPERTS SAY THE NEWER PARTNERS GENERALLY MAKE LESS MONEY SO THAT THE FIRM CAN STILL REDUCE OVERHEAD COOPERS ALSO SAID IT HAD A RECORD 1000 NEW HIRES THIS YEAR ALTHOUGH MOSTLY ENTRYLEVEL EMPLOYEES THE DROP IN OVERALL PARTNERSHIPS REFLECTS A MAJOR CHANGE IN THE ACCOUNTING INDUSTRY WHICH DURING THE EARLY 1980S ADDED PARTNERS EVERY YEAR IN RECENT YEARS HOWEVER MANY FIRMS HAVE REDUCED OR MERELY MAINTAINED THEIR PARTNERSHIP RANKS AS REVENUE GROWTH HAS SLOWED BESIDES CUTTING COSTS COOPER'S MOVES ARE VIEWED AS AN EFFORT TO RESTRUCTURE TO BECOME MORE COMPETITIVE IN AN ATTEMPT TO STREAMLINE THE FIRM AND EMPHASIZE CERTAIN AREAS OF OUR PRACTICE WE HAVE REORGANIZED AND FOUND THAT SOME PEOPLE DON'T HAVE THE SKILLS NEEDED FOR THE NEW ORGANIZATION SAID VINCENT M O'REILLY CHIEF OPERATING OFFICER THE NUMBER OF PARTNERS LEAVING IN THE CURRENT YEAR HE ADDED IS HIGHER THAN WE'VE EXPERIENCED IN THE PAST FEW YEARS COOPERS' FISCAL 1992 US REVENUE OF 157 BILLION WAS UP 63 FROM THE YEAR BEFORE SOME COOPERS PARTNERS SAY THAT FISCAL 1993 REVENUE WILL RISE ONLY 3 TO 4 MR O'REILLY DECLINED TO COMMENT ON THIS FORECAST AS PART OF THE RESTRUCTURING MR O'REILLY SAID COOPERS HIRED HILL HOLLIDAY CONNOR COSMOPULOS INC A BOSTON ADVERTISING AGENCY WITH A NEW YORK OFFICE TO HANDLE MUCH OF THE INTERNAL AND EXTERNAL COMMUNICATIONS WORK PREVIOUSLY HANDLED BY COOPERS EMPLOYEES MR O'REILLY SAID THAT DEPARTMENTS OTHER THAN MARKETING WILL BE SCRUTINIZED FOR POSSIBLE OUTSOURCING AND THAT SOME REALESTATE SPACE MAY BE DROPPED LATE LAST YEAR EUGENE M FREEDMAN COOPERS CHAIRMAN SAID THAT DISTRIBUTIONS OF PROFITS TO PARTNERS LAST YEAR WERE SOMEWHAT DECREASED BECAUSE OF A RESERVE FOR LIABILITY INSURANCE LEGAL FEES AND LAWSUIT SETTLEMENTS WERE INCREASED ABOUT 10 MR FREEDMAN WHO IS ON VACATION WASN'T AVAILABLE TO COMMENT LAST YEAR COOPERS AGREED TO PAY 95 MILLION TO SETTLE CLAIMS RELATED TO THE FIRM'S ALLEGEDLY FAULTY AUDITS FOR A FORMER CLIENT THE NOWDEFUNCT MINISCRIBE CORP THE SETTLEMENT IS AMONG THE BIGGEST FOR ACCOUNTING FIRMS IN LIABILITY CASES 9308180065 930818 CREDIT MARKETS CORPORATIONS ISSUE ABOUT 4 BILLION OF NEW DEBT IN RUSH TO TAKE ADVANTAGE OF LOW INTEREST RATES BY THOMAS T VOGEL JR AND JACQUELINE DOHERTY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK WITH INTEREST RATES HOVERING NEAR THEIR LOWEST LEVELS IN DECADES CORPORATIONS RUSHED TO ISSUE NEW DEBT YESTERDAY A WAVE OF ABOUT 4 BILLION OF NEW CORPORATE NOTES AND BONDS WERE SOLD YESTERDAY INCLUDING A 950 MILLION OFFERING FROM NATIONSBANK CORP OF CHARLOTTE NC THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN 1/8 POINT OR MORE THAN 125 FOR A BOND WITH A 1000 FACE VALUE TO 99 5/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE ROSE TO 631 FROM 630 ON MONDAY THE 10YEAR NOTE DROPPED 1/4 POINT TO 100 8/32 TO YIELD 571 UP FROM 568 NATIONSBANK APPEARED TO HAVE NO TROUBLE SELLING ITS DEBT PAPER YESTERDAY SAID MONEY MANAGERS THE BANK SOLD 550 MILLION OF 10YEAR SUBORDINATED NOTES AND 400 MILLION OF THREEYEAR SENIOR NOTES THE SALES WERE PART OF A PREVIOUSLY ANNOUNCED 4 BILLION SHELF REGISTRATION FOR DEBT SECURITIES AND STOCK THE THREEYEAR NOTES WERE GONE IN A FLASH SAID BARBARA KENWORTHY A PORTFOLIO MANAGER AT DREYFUS CORP A MUTUAL FUND FIRM THERE WAS STRONG DEMAND FOR THE THREEYEAR NOTES BECAUSE OF MOVES RECENTLY BY LARGE ISSUERS TO BUY BACK OUTSTANDING SHORTTERM CORPORATE SECURITIES SHE SAID THE MOVES TO CALL THESE ISSUES COMBINED WITH ENORMOUS FLOWS OF NEW MONEY INTO SHORTTERM CORPORATE SECURITIES HAVE CREATED VERY STRONG DEMAND FOR ANY NEW ISSUES OF SHORTTERM CORPORATE DEBT SAID MS KENWORTHY IT WAS SMART TIMING FOR NATIONSBANK SHE ADDED DEMAND FOR THE 10YEAR NOTES DIDN'T SEEM AS STRONG SHE SAID THOUGH IT DIDN'T APPEAR THAT THE UNDERWRITERS WOULD HAVE TROUBLE EVENTUALLY SELLING ALL OF IT TO INVESTORS DEMAND FOR BOTH ISSUES WAS STRONG ENOUGH TO INCREASE THE SIZE OF THE DEAL FROM 850 MILLION THE FIRST PART THE 400 MILLION OF THREEYEAR SENIOR NOTES WAS PRICED AT 9975 TO YIELD 4842 THE NOTES WERE PRICED AT A SPREAD OF 046 PERCENTAGE POINT ABOVE THREEYEAR TREASURY NOTES THE SECOND PART THE 550 MILLION OF 10YEAR SUBORDINATED NOTES WAS PRICED AT PAR TO YIELD 65 THE NOTES WERE PRICED AT A SPREAD OF 080 PERCENTAGE POINT ABOVE 10YEAR TREASURYS NOTES LATE IN THE DAY MOODY'S INVESTORS SERVICE INC RAISED THE RATINGS ON NATIONSBANK'S SENIOR DEBT TO SINGLEA2 FROM SINGLEA3 AS WELL AS ITS RATING FOR SUBORDINATED DEBT TO SINGLEA3 FROM BAA1 MOODY'S ALSO RAISED THE ITS COMMERCIALPAPER RATING TO PRIME1 FROM PRIME2 AS A RESULT BOTH PARTS OF YESTERDAY'S DEBT OFFERING WERE IN EFFECT UPGRADED FROM BAA1 TO SINGLEA3 IT IS AN UNUSUAL OCCURRENCE FOR A COMPANY SELLING A LARGE AMOUNT OF DEBT TO RECEIVE A RATINGS UPGRADE SHORTLY AFTER THE OFFERING IS COMPLETED SAID JOHN LONSKI SENIOR ECONOMIST AT MOODY'S THE RATINGS UPGRADE SHOULDN'T HAVE COME AS A SURPRISE SAID MR LONSKI SINCE THE COMPANY'S RATING WAS BEING REVIEWED AT THE TIME BUT IT IS COMMON FOR COMPANIES TO HOLD OFF SELLING NEW DEBT UNTIL AFTER A RATING REVIEW IF AN UPGRADE IS EXPECTED AS IN THE CASE OF NATIONSBANK THAT'S BECAUSE A HIGHER RATING WOULD MEAN LOWER INTEREST COSTS TO THE COMPANY LATE YESTERDAY OFFICIALS FOR NATIONSBANK AND MERRILL LYNCH WERE UNAVAILABLE FOR COMMENT PROCEEDS FROM THE DEBT ISSUES WILL BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING POSSIBLE REDUCTION OF DEBT OR FOR ACQUISITIONS NATIONSBANK HAS RECENTLY ACQUIRED MNC FINANCIAL INC AND THE ASSETS AND BUSINESS OF U S WEST FINANCIAL SERVICES INC WITH INTEREST RATES DROPPING AND INVESTOR DEMAND FOR HIGHER YIELDS NOT WANING COMPANIES THAT COULDN'T COME TO MARKET EARLIER THIS YEAR ARE JUMPING IN ACCORDING TO MS KENWORTHY OF DREYFUS THERE ARE MORE MARGINAL NAMES COMING TO THE MARKET ONE ISSUER TO BENEFIT FROM DROPPING RATES AND THE HUNT FOR HIGHER YIELDS WAS TRANSTEXAS GAS CORP WHICH SOLD 500 MILLION OF SEVENYEAR NOTES YESTERDAY THE TRANSTEXAS DEAL WAS ONE MANY THOUGHT WOULD BE DIFFICULT TO SELL BECAUSE OF THE TROUBLED FINANCIAL HISTORY OF ITS PARENT COMPANY WHOLLY OWNED BY JOHN R STANLEY THE COMPANY SOLD THE NONCALLABLE SENIOR SECURED NOTES AT PAR TO YIELD 105 ABOUT 479 PERCENTAGE POINTS ABOVE SEVENYEAR TREASURY NOTES THE NOTES ARE RATED SINGLEB1 BY MOODY'S AND DOUBLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JEFFERIES & CO ACCORDING TO A REORGANIZATION PLAN APPROVED BY A HOUSTON BANKRUPTCY COURT IN 1987 MOST OF THE PROCEEDS OF THIS OFFERING ARE SLATED TO GO TO CREDITORS WHO ARE STILL OWED MONEY MEANWHILE TRADING IN THE SECONDARY MARKET WAS CONFUSING TRADERS SAID MARKET PLAYERS WEREN'T SURE IF THEY SHOULD TRADE LONGTERM CORPORATE DEBT OFF THE 625 30YEAR TREASURY BOND AUCTIONED LAST WEEK OR THE PREVIOUS LONG BOND THE 7125 COUPON MATURING IN FEBRUARY 2023 AS A RESULT TRADES SEEMED TO BE QUOTED OFF THE NEW TREASURYS BUT THE SPREADS WERE ADJUSTED UPWARDS SLIGHTLY TO TAKE INTO ACCOUNT THE HIGHERYIELDING 7125 TREASURYS MARKET WATCHERS EXPECT THE SPREAD BETWEEN THE TWO ISSUES TO REMAIN AT ABOUT 010 PERCENTAGE POINT OR POSSIBLY WIDEN BEFORE THE GAP DISAPPEARS IN THE JUNK BOND MARKET TRADING WAS QUIET WITH PRICES REMAINING UNCHANGED PHILIPS ELECTRONICS NV ALSO CAME TO MARKET YESTERDAY THE COMPANY'S TWOPART 500 MILLION ISSUE OF NOTES WAS SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO THE FIRST PART 250 MILLION OF 10YEAR NOTES WAS PRICED AT 99725 TO YIELD 6788 THE NOTES WERE PRICED AT A SPREAD OF 11 PERCENTAGE POINTS ABOVE COMPARABLE TREASURYS THE SECOND PART 250 MILLION OF 20YEAR DEBENTURES WAS PRICED AT 99154 TO YIELD 7331 THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 105 PERCENTAGE POINTS ABOVE COMPARABLE TREASURYS BOTH PARTS ARE NONCALLABLE AND RATED BAA1 BY MOODY'S AND TRIPLEB BY S&P THE RALLY IN US TREASURYS SEEMED TO TAKE A BREATHER YESTERDAY WITH NOTES AND BONDS FINISHING A LOWVOLUME SESSION WITH MODERATE DECLINES THE MARKET WENT DOWN VERY SLOWLY VERY METHODICALLY SAID ANDREW BRENNER A TRADER AT NOMURA SECURITIES INTERNATIONAL INC LIKE THE BENCHMARK 30YEAR BOND AND THE 10YEAR NOTE MOST OTHER TREASURY SECURITIES POSTED MODEST DECLINES THE FIVEYEAR NOTE FOR EXAMPLE DROPPED MORE THAN 1/8 POINT TO 100 24/32 TO YIELD 506 UP FROM 502 ON MONDAY TREASURYS STARTED THE DAY WITH THE 30YEAR BOND TRADING HIGHER BOLSTERED BY BUYING OUT OF THE FAR EAST HOWEVER THE REST OF THE MARKET HEADED LOWER FROM THE START ONLY WHEN THE YIELD ON THE 30YEAR BOND NEARED 625 DID SELLING EMERGE AND BY THE END OF TRADING THE ENTIRE SPECTRUM OF ISSUES WAS POSTING MODEST LOSSES FOR A GOOD PART OF THE DAY MOST OF THE MARKET WAS UNDER PRESSURE BUT THE BOND CONTINUED TO TRADE HIGHER SAID WARD MCCARTHY MANAGING DIRECTOR AT STONE & MCCARTHY RESEARCH ASSOCIATES ULTIMATELY THE BOND FINALLY GAVE WAY WITH THE REST OF THE MARKET BUT IT STILL CLEARLY HAD A MIND OF ITS OWN IN ADDITION TO THE OVERSEAS BUYING AT THE LONG END THE TREASURY'S 30YEAR ISSUE CONTINUED TO BENEFIT FROM TRADERS BUYING BONDS WHILE SELLING OTHER ISSUES SUCH POSITIONS ARE PUT IN PLACE TO TAKE ADVANTAGE OF A NARROWING YIELD GAP WHICH OCCURS WHEN THE GAP BETWEEN SHORTTERM AND LONGTERM YIELDS CLOSES PLAYERS REPORTED PARTICULAR INTEREST IN SELLING FIVEYEAR NOTES AGAINST 30YEAR BONDS WITH THE EMPHASIS ON MORE YIELDGAPNARROWING BETS THE WIDELY WATCHED SPREAD BETWEEN THE YIELD ON THE TWOYEAR NOTE AND 30YEAR BOND FELL TO 233 PERCENTAGE POINTS YESTERDAY FROM 235 PERCENTAGE POINTS ON MONDAY EVEN BULLISH ECONOMIC DATA FAILED TO INSPIRE A MARKET THINNED OUT BY SUMMER VACATIONS AND CATCHING ITS BREATH AFTER LAST WEEK'S POWERFUL RALLY THE COMMERCE DEPARTMENT REPORTED HOUSING STARTS FELL 27 TO A 1212 MILLIONUNIT ANNUAL RATE IN JULY SLIGHTLY WEAKER THAN EXPECTED WHILE THE REPORT DID NOT DRAW IN NEW BUYERS ANALYSTS SAID IT SHOULD REINFORCE THE NOTION OF CONTINUED SLUGGISH GROWTH BOND INVESTORS OFTEN WELCOME REPORTS OF A SLUGGISH ECONOMY BECAUSE THEY BELIEVE IT MEANS LESS THREAT OF INFLATION WHICH CAN REDUCE THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN SOME OF THE SELLING WAS BLAMED ON THE LACK OF AN OUTRIGHT PURCHASE OF SECURITIES BY THE FEDERAL RESERVE ANALYSTS BELIEVE THE FED NEEDS TO ENTER THE MARKET TO BUY AS MUCH AS 5 BILLION WORTH OF BILLS OR COUPON SECURITIES IN ORDER TO COUNTER A SEASONAL SHORTAGE OF RESERVES SUCH AN AUCTION KNOWN AS A PASS WOULD HAVE NO MONETARY POLICY SIGNIFICANCE THERE IS LITTLE ECONOMIC DATA DUE OUT TODAY THIS AFTERNOON THE TREASURY WILL ANOUNCE THE SIZE OF NEXT WEEK'S TWOYEAR AND FIVEYEAR NOTE AUCTIONS AT THE JULY AUCTIONS THE TREASURY SOLD 16 BILLION OF TWOYEAR NOTES AND 11 BILLION OF FIVEYEAR NOTES PRICES OF MUNICIPAL BONDS ENDED A SLOW SESSION UNCHANGED TO 1/4 POINT FIRMER AS MARKET PARTICIPANTS AWAITED TODAY'S SPATE OF PRICINGS ISSUANCE HAS BEEN RATHER LIGHT IN THE LAST FEW WEEKS EVEN THOUGH US INTEREST RATES HAVE CONTINUED TO DECLINE TODAY HOWEVER ISSUERS MAY BRING MORE THAN 15 BILLION OF SECURITIES TO THE MARKET TOPPING THE NEGOTIATED CALENDAR IS MASSACHUSETTS' 650 MILLION REFUNDING GENERAL OBLIGATION BOND ISSUE WHICH IS SCHEDULED FOR PRICING BY A BEAR STEARNS & CO GROUP IN THE COMPETITIVE SECTOR BIDS WILL BE TAKEN FOR PENNSYLVANIA'S 242 MILLION THIRD SERIES OF 1993 GENERAL OBLIGATION BONDS AND THE METROPOLITAN ATLANTA RAPID TRANSIT AUTHORITY'S 150 MILLION OF SERIES 1993A BONDS IN SECONDARY TRADING PHILADELPHIA'S 550 WATER AND WASTEWATER REVENUE BONDS OF 2015 FINISHED STEADY AT 98 1/4 TO YIELD 562 PRICES OF MORTGAGE SECURITIES FINISHED ANOTHER LISTLESS SUMMER SESSION WITH THIN PRICE DECLINES TOYOTA MOTOR CREDIT CORP A TRIPLEA RATED SUBSIDIARY OF TOYOTA MOTOR CORP MEANWHILE CAPITALIZED ON A RECENT LACK OF FIXEDRATE AUTOMOBILE SECURITIES TO BRING ITS FIRST EVER ASSETBACKED TRANSACTION NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT ISSUANCE WAS NEGLIGIBLE THE ONLY ANNOUNCEMENT WAS THE DOUBLING OF THE FEDERAL NATIONAL MORTGAGE ASSOCIATION'S SERIES 1993170 BACKED BY THE AGENCY'S 15YEAR 65 ISSUES TO 600 MILLION BY GREENWICH CAPITAL MARKETS IN SECONDARY TRADING OF 65 MORTGAGE SECURITIES FOR SEPTEMBER DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED 3/32 LOWER AT 100 2/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES ENDED 1/32 LOWER AT 100 3/32 AND FANNIE MAE ISSUES ENDED 2/32 LOWER AT 99 29/32 IN THE ASSETBACKED SECTOR TOYOTA THE FIRST TRIPLEA COMPANY TO TAP THE MARKET HAD TO PAY INVESTORS ONLY 0375 PERCENTAGE POINT MORE THAN THE YIELD ON THE TREASURY'S OFFTHERUN 4625 TWOYEAR NOTE OF DECEMBER 1994 OFFTHERUN MEANS AN ISSUE ISN'T THE MOST RECENT TOYOTA PRICED THE 467 MILLION ISSUE TO YIELD WHAT MAY BE THE THINNEST SPREAD TO TREASURYS EVER ACHIEVED FOR AN AUTO ASSETBACKED DEAL THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9308180064 930818 MARKETING & MEDIA RANDOM HOUSE GETS WORLDWIDE RIGHTS TO POWELL MEMOIRS NEW YORK RANDOM HOUSE ACQUIRED THE WORLD RIGHTS TO THE UNWRITTEN MEMOIRS OF GEN COLIN POWELL AT A PRICE SAID TO EXCEED 6 MILLION THE BOOK WILL BE PUBLISHED IN 1995 RANDOM HOUSE SAID AND WON'T BE STARTED UNTIL GEN POWELL 56 YEARS OLD RETIRES SEPT 30 AS CHAIRMAN OF THE JOINT CHIEFS OF STAFF THE GENERAL WILL WORK WITH A PROFESSIONAL WRITER WHO HASN'T BEEN CHOSEN SAID HIS AGENT MARVIN JOSEPHSON OF INTERNATIONAL CREATIVE MANAGEMENT BIDDING FOR THE MEMOIRS WAS HEATED AND INDUSTRY INSIDERS HAD LONG EXPECTED THE FINAL PRICE TO EXCEED THE REPORTED 55 MILLION PAID TO GEN NORMAN SCHWARZKOPF THAT'S BECAUSE THE BOOK BY GEN SCHWARZKOPF WAS MORE SUCCESSFUL THAN ANTICIPATED SINCE IT WAS PUBLISHED LAST FALL IT DOESN'T TAKE A HERO HAS SOLD MORE THAN ONE MILLION COPIES IN HARDCOVER SAYS PUBLISHER BANTAM BOOKS BANTAM A UNIT OF BERTELSMANN AG IS BELIEVED TO HAVE MADE MONEY ON THE BOOK PUBLISHERS SAY GEN POWELL'S MEMOIRS ALSO COULD BE APPEALING TO THE PUBLIC PARTLY BECAUSE THE BOOK WILL COVER HIS RISE TO A TOP MILITARY POST FROM HIS CHILDHOOD IN HARLEM AS THE CHILD OF JAMAICAN IMMIGRANTS HE ALSO IS BEING COURTED BY POLITICANS WHO SUGGEST HE MAY BE A POTENTIAL VICE PRESIDENTIAL OR EVEN PRESIDENTIAL CANDIDATE IN 1996 NONETHELESS THE PRICE BEING PAID BY RANDOM HOUSE A UNIT OF THE NEWHOUSE FAMILY'S ADVANCE PUBLICATIONS INC IS VIEWED AS A CONSIDERABLE RISK BY OTHER PUBLISHERS DESPITE ITS SUCCESS WITH GEN SCHWARZKOPF BANTAM WASN'T EVEN A FINALIST IN THE BIDDING FOR THIS BOOK 9308180063 930818 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 1/8 NEAR CLOSING BID 3 3/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 59 DAYS 312 60 TO 89 DAYS 313 90 TO 119 DAYS 314 120 TO 156 DAYS 325 157 TO 244 DAYS 332 245 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 316 30 DAYS 317 60 DAYS 318 90 DAYS CERTIFICATES OF DEPOSIT 260 ONE MONTH 265 TWO MONTHS 268 THREE MONTHS 287 SIX MONTHS 303 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 305 ONE MONTH 309 THREE MONTHS 325 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 304 60 DAYS 305 90 DAYS 307 120 DAYS 315 150 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 16 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 303 13 WEEKS 312 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 687 60 DAYS 695 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 682 60 DAYS 692 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 505 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 9308180062 930818 WHO'S NEWS TWO CLAYTON HOMES DIRECTORS RESIGN IN DISPUTE OVER TENNESSEE TAX PROBE BY ALECIA SWASY STAFF REPORTER OF THE WALL STREET JOURNAL CLAYTON HOMES INC SAID TWO OUTSIDE DIRECTORS RESIGNED AFTER A DISPUTE OVER HOW THE BOARD SHOULD HANDLE A TENNESSEE STATE INVESTIGATION OF THE HOME BUILDER'S FAILURE TO PAY CERTAIN STATE SALES TAXES THE KNOXVILLE TENN COMPANY SAID WILLIAM H LOMICKA PRESIDENT OF MAYFAIR CAPITAL A LOUISVILLE KY INVESTMENT COMPANY AND WALLACE N RASMUSSEN RETIRED CHIEF EXECUTIVE OF BEATRICE FOODS COS BOTH RESIGNED FROM THE EIGHTMEMBER BOARD THE BOARD RECEIVED THE LETTER OF RESIGNATION LAST FRIDAY TWO WEEKS AFTER ITS JULY 30 MEETING SAID RICHARD RAY WHO IS CLAYTON'S EXECUTIVE VICE PRESIDENT OF FINANCE AND A DIRECTOR AT THAT MEETING HE SAID THE MAJORITY OF THE DIRECTORS VOTED TO DISMISS THE OUTSIDE LAW FIRM HIRED EARLIER THIS SUMMER TO ADVISE THE BOARD'S AUDIT COMMITTEE BUT MR LOMICKA AND MR RASMUSSEN WANTED TO KEEP THE LAWYERS TO HELP WITH A CONTINUING INTERNAL INVESTIGATION MR RAY SAID HE WOULDN'T DISCLOSE THE NAME OF THE LAW FIRM THE INVESTIGATION BY THE TENNESSEE DEPARTMENT OF REVENUE STEMS FROM AN AUDIT OF CLAYTON'S SALES TAX RETURNS FOR 1988 THROUGH 1991 STATE AUDITORS DISCOVERED THAT CLAYTON EITHER DIDN'T FILE RETURNS OR GAVE INCORRECT INFORMATION FOR SIX OF ITS MANUFACTUREDHOME COMMUNITIES MR RAY SAID THE CONTROLLER FOR CLAYTON'S RETAIL GROUP WHO WAS RESPONSIBLE FOR FILING THE RETURNS RESIGNED EARLIER THIS SUMMER THE RETAIL DIVISION INCLUDES THE 143 COMPANYOWNED DEALERSHIPS THAT SELL THE MANUFACTURED HOMES CLAYTON SAID IT RECENTLY PAID THE STATE 163000 IN SALES TAXES FOR THE YEARS INVOLVED IN THE AUDIT BUT TENNESSEE COMMISSIONER OF REVENUE JOE HUDDLESTON SAID THE PAYMENT DOESN'T RESOLVE THE CASE AND THAT THE STATE IS CONTINUING TO INVESTIGATE POSSIBLE VIOLATIONS OF TAX LAWS THE INVESTIGATION COMES AS A BLOW TO CLAYTON WHICH HAS REPORTED INCREASED EARNINGS FOR MORE THAN A DECADE MOST RECENTLY CLAYTON POSTED FISCAL 1993 NET INCOME OF 118 A SHARE UP FROM 90 CENTS A SHARE A YEAR EARLIER REVENUE ROSE TO 4763 MILLION UP FROM 3712 MILLION IN 1992 IT'S UNCLEAR WHAT THE REPORT FROM THE FORMER OUTSIDE COUNSEL REVEALED OR WHY THE BOARD DISAGREED AT THE MEETING MR RAY SAID THE DISPUTE WAS LINKED TO THE COST OF THE COUNSEL HE DEEMED IT TOO HIGH RELATIVE TO THE BENEFIT AND LIKENED IT TO USING AN ATOMIC BOMB WHEN A FLY SWATTER WOULD DO BUT THE AUDIT COMMITTEE WILL RETAIN NEW AUDITORS AND OUTSIDE COUNSEL TO CONTINUE THE INQUIRY ON THE AUDIT AND ANY OTHER RELATED MATTERS THE COMPANY SAID MR RAY DESCRIBED THE LAST MEETING AS A CANDID DEBATE BUT WOULDN'T ELABORATE ON THE DISPUTE THE RESIGNATIONS ARE SURPRISING MR RAY SAID NOTING THE TWO DIRECTORS DIDN'T INDICATE AT THE MEETING THAT THEY WOULD RESIGN MESSRS LOMICKA AND RASMUSSEN DIDN'T RETURN CALLS SEEKING COMMENT CLAYTON NAMED TWO NEW DIRECTORS TO SUCCEED THEM THE BOARD ELECTED C WARREN NEEL DEAN OF THE UNIVERSITY OF TENNESSEE'S COLLEGE OF BUSINESS ADMINISTRATION AND JAMES D COCKMAN CHAIRMAN OF OCEAN FRESH FOODS INTERNATIONAL INC MR COCKMAN WAS ALSO NAMED TO THE AUDIT COMMITTEE ALONG WITH DAN W EVINS CHAIRMAN AND CHIEF EXECUTIVE OF CRACKER BARREL OLD COUNTRY STORES WHO HAS BEEN ON THE CLAYTON BOARD SINCE 1991 9308180061 930818 ONE TUNE THEY MAY NOT PLAY THE SHE'S TOO FAT FOR ME' POLKA BY CRISTINE GONZALEZ STAFF REPORTER OF THE WALL STREET JOURNAL WHAT'S THE BEST WAY FOR A GROUP OF FEMINIST ACCORDION PLAYERS TO FINANCE A TRIP TO BEIJING WHY BY PLAYING WOMEN OF SPAIN AT STREET CONCERTS OF COURSE THE NEW CALIFORNIA MUSICAL ENSEMBLE CALLING ITSELF THE GOSPEL ACCORDION TO WOMEN HOPES TO RAISE 15000 TO HELP GET ITS 12 MEMBERS TO THE UNITED NATIONS WOMEN'S CONFERENCE IN CHINA IN 1995 BUT ITS STATEMENT OF PURPOSE SAYS IT ALSO WANTS TO BREAK THE GLASS CEILING FOR WOMEN ACCORDION PLAYERS AND WAGE PEACE BY BEATING GUNS INTO ACCORDIONS THE IDEA WAS BORN AT LAST MONTH'S NATIONAL WOMEN'S POLITICAL CAUCUS IN LOS ANGELES WHERE MORE THAN 1000 PEOPLE REVIEWED WAYS TO INCREASE WOMEN'S INFLUENCE IN GOVERNMENT NANCY DESTEFANIS EXECUTIVE DIRECTOR OF WOMEN ARE GOOD NEWS A GROUP SUPPORTING WOMEN IN THE MEDIA HAD RECENTLY BEGUN PLAYING THE INSTRUMENT AT A LUNCHEON HER ACCORDION PIN PROMPTED TALK ABOUT THE GOOD A POLITICIZED WOMEN'S ACCORDION GROUP COULD DO BEFORE LONG GOSPEL MEMBERS WERE GREETING EACH OTHER WITH A SECRET SIGN HANDS SQUEEZING TOGETHER ACCORDIONSTYLE MS DESTEFANIS SAYS THE GROUP NOW INCLUDING A REALESTATE BROKER A PSYCHOLOGIST AND A FEDERAL DEPOSIT INSURANCE CORP LAWYER WAS INSPIRED BY THOSE DARN ACCORDIONS A SAN FRANCISCO GROUP THAT SUCCESSFULLY LOBBIED TO MAKE THE ACCORDION THE CITY'S OFFICIAL INSTRUMENT BEFORE TAKING THEIR ACT TO THE STREETS WHERE THEY'LL ALTER THE NAME OF THE ACCORDION STANDARD LADY OF SPAIN THEY WILL APPEAR AT A NOVEMBER WOMEN'S CONFERENCE IN LONG BEACH FOR MOST MEMBERS THAT MEANS LEARNING TO PLAY THE INSTRUMENT IN A HURRY THEY'LL ALSO SELL BUMPER STICKERS THAT SAY I'M PROACCORDION AND I VOTE LEE BRIGHT PRESIDENT OF BRIGHT MARKETING INTERNATIONAL IN LONG BEACH AND A MEMBER OF THE GROUP SAYS THE WHOLE IDEA IS ABSOLUTELY CRAZY BUT THAT'S THE PROBLEM WITH THIS COUNTRY WE ALL TAKE OURSELVES TOO SERIOUSLY ONCE IN CHINA THEY'LL FIND NONMUSICAL WAYS TO LOBBY ON SUCH SUBJECTS AS WOMEN'S HEALTH AND DOMESTIC VIOLENCE BUT THEY'RE ALSO LOOKING FORWARD TO JAM SESSIONS WITH BEIJING'S WOMEN ACCORDION PLAYERS A CHINESE INSTRUMENT CALLED THE SHENG WAS A FORERUNNER OF THE MODERN ACCORDION AS FOR GOSPEL'S STREET PERFORMING WHAT ARE THE MONEYRAISING PROSPECTS OF A BUNCH OF NOVICE ACCORDION PLAYERS GOOD SAYS MS DESTEPHANIS WE'LL PLAY UNTIL PEOPLE PAY US TO STOP 9308180060 930818 EQUITABLE PLANS DONALDSON SALE OF UNDER 20 INSURER WILL MAKE OFFERING OF ITS BROKERAGE FIRM SOMETIME DURING 1994 BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK EQUITABLE COS SAID IT PLANS TO TAKE PUBLIC ITS DONALDSON LUFKIN & JENRETTE INVESTMENT BANKING UNIT SOMETIME NEXT YEAR BUT WILL SELL LESS THAN 20 TO INVESTORS THE MOVE REFLECTS NOT ONLY THE LIFEINSURANCE COMPANY'S DESIRE TO RAISE CAPITAL BUT TO TAKE ADVANTAGE OF THE HOT MARKET FOR BROKERAGE STOCKS RICHARD JENRETTE EQUITABLE'S CHAIRMAN RAISED THE POSSIBILITY OF A PUBLIC OFFERING LAST MAY WHEN HE TOLD THE COMPANY'S ANNUAL MEETING THAT DONALDSON IS WORTH TWICE ITS 500 MILLION BOOK VALUE OR ABOUT 1 BILLION THEORETICALLY THEN AN OFFERING OF 20 COULD RAISE 200 MILLION IN CASH WHILE ALLOWING THE COMPANY TO BOOST ITS CAPITAL VALUE BY 500 MILLION INSURANCE COMPANIES ARE EAGER TO INCREASE THEIR CAPITAL BASE IN PART BECAUSE OF CONSUMER CONCERNS ABOUT THE INDUSTRY'S FINANCIAL HEALTH BY SELLING ONLY A SMALL PORTION EQUITABLE CAN WRITE UP THE FIRM'S VALUE WITHOUT FORFEITING TOO MUCH OF ITS PROFITS THE COMPANY CAN ALSO CONTINUE TO CONSOLIDATE DONALDSON'S EARNINGS FOR TAX PURPOSES MEANING IT COULD CONTINUE TO SHELTER THE UNIT'S PROFITS WITH PAST LOSSES BY EQUITABLE MR JENRETTE DISCLOSED PLANS FOR THE OFFERING YESTERDAY IN AN INTERVIEW WITH BLOOMBERG BUSINESS NEWS ON THE NEW YORK STOCK EXCHANGE EQUITABLE CLOSED AT A HIGH OF 29 UP 125 EQUITABLE ITSELF WENT PUBLIC IN JULY 1992 A DONALDSON LUFKIN SALE WOULD MAKE EQUITABLE THE LATEST ENTRANT IN A PARADE OF PUBLIC OFFERINGS FOR BROKERAGE FIRMS SEARS ROEBUCK & CO RECENTLY TOOK PUBLIC DEAN WITTER DISCOVER & CO WHICH INCLUDES THE DEAN WITTER BROKERAGE FIRM AMERICAN EXPRESS CO IS EXPECTED TO TAKE PUBLIC ITS INVESTMENT BANK LEHMAN BROTHERS ANALYSTS PRAISED EQUITABLE'S TIMING BY TAKING DONALDSON LUFKIN PUBLIC SOON EQUITABLE MAY WELL BE CATCHING THE PEAK OF THE 2 YEAR UNDERWRITING BOOM ON WALL STREET RECORD FIRSTHALF ISSUANCE OF NEW STOCKS AND BONDS HAS DRIVEN THE STOCKS OF SOME SECURITIES BROKERS TO HIGHS INCLUDING THE SHARES OF MERRILL LYNCH & CO AND MORGAN STANLEY GROUP AND DONALDSON'S MARKET SHARE HAS BEEN IMPROVING AMID THE BOOM DONALDSON RANKED 11TH AMONG WALL STREET UNDERWRITERS IN THE YEAR TO DATE SERVING AS LEAD MANAGER ON 127 STOCK AND BOND OFFERINGS WORLDWIDE THIS YEAR FOR A TOTAL OF 223 BILLION ACCORDING TO SECURITIES DATA CO THE COMPANY HAS MOVED UP FROM 13TH PLACE AND 87 ISSUES TOTALING 151 BILLION IN THE LIKE YEARAGO PERIOD IT'S IMPORTANT FOR EQUITABLE TO KEEP MOST OF DONALDSON BECAUSE THE BROKERAGE FIRM ALONG WITH EQUITABLE'S MONEYMANAGEMENT OPERATIONS ARE RESPONSIBLE FOR THE BULK OF ITS PROFIT EQUITABLE'S INSURANCE OPERATIONS BECAME PROFITABLE IN THE SECOND QUARTER BUT ITS EARNINGS ARE STILL OVERSHADOWED BY THOSE POSTED BY EQUITABLE'S FINANCIALSERVICES BUSINESSES DONALDSON HAD A 250 MILLION PRETAX PROFIT LAST YEAR ALEXANDRA PEERS CONTRIBUTED TO THIS ARTICLE