ARLINGTON MASS ROLLING UP A SLEEVE ROGER JENKINS DISPLAYS SCARS FROM RECENT NEIGHBORHOOD VIOLENCE HERE AN ARTERY WAS PUNCTURED SAYS MR JENKINS WHO TOOK HIS WOUNDS TO THE HOSPITAL I WAS REALLY BLEEDING IN A STORY STEPHEN KING MIGHT HAVE DREAMED UP AND REJECTED AS TOO FANCIFUL MR JENKINS TELLS HOW A NEIGHBOR'S CAT HARASSED HIM FOR MONTHS CRASHED THROUGH A WINDOW ONE NIGHT AND LIT INTO HIM LIKE A CRAZED SLASHER ANOTHER NEIGHBOR ALAN KAPLAN COMPLAINED IN A LETTER TO TOWN OFFICIALS THAT THE SAME CAT GARFIELD SITS ON MY LAWN AND EVEN MY FRONT STOOP AT ALL TIMES OF THE DAY AND NIGHT WAITING TO ATTACK MY CAT AND FAMILY THE INCIDENTS RECENTLY SENT ANGRY NEIGHBORS TO TOWN HALL SEEKING CATCONTROL LAWS IN THIS LEAFY BOSTON SUBURB WE'VE THROWN DOGS OUT OF TOWN BEFORE SAYS ARLINGTON SELECTMAN CHARLES LYONS BUT WE NEVER HAD A BEASTLY CAT ISSUE BEFORE OUTSIDE ARLINGTON HOWEVER MORE TRANSGRESSING TABBIES STALK THE LAND A FEW YEARS AGO CATS PASSED DOGS AS AMERICA'S MOST POPULAR OR AT LEAST POPULOUS PETS NOT COUNTING FISH THE RANKS OF STRAYS ALSO HAVE SWELLED WITH THE COMMENSURATE RISE IN FELINEHUMAN CONTACT CATS IN UNPRECEDENTED NUMBERS FIND THEMSELVES IN THE DOGHOUSE ANIMALCONTROL EXPERTS SAY CAT COMPLAINTS ARE ON THE RISE FROM NEW JERSEY TO CALIFORNIA NEIGHBORS GRIPE ABOUT MORE DEPOSITS IN THEIR SANDBOXES MORE WEEHOURS YOWLING UNDER THE WINDOW MORE SPRAYED BUSHES MORE CAT FIGHTS AND MORE PAW PRINTS ACROSS THEIR CARS WE WERE OVERRUN BY A NEIGHBORING FAMILY'S PASSEL OF FREEROAMING CATS SAYS RUTH KRUCKENBERG OF BUENA PARK CALIF BEFORE THE FAMILY MOVED AWAY LAST YEAR THE FELINES DUG UP MRS KRUCKENBERG'S GARDEN LEFT FUR ON HER CHAISE LONGUES AND TAUNTED HER FEEBLE 15YEAROLD POODLE THE KRUCKENBERGS USED A SLINGSHOT TO NO AVAIL AND TRIED CALLING EVERY AGENCY BUT NOT ONE DID A THING MRS KRUCKENBERG SAYS FOR ANIMALCONTROL OFFICIALS THE CAT ISSUE HAS REALLY GOTTEN HOT OVER THE PAST FEW YEARS SAYS PEGGY HINNEN EDITOR OF NACA NEWS VOICE OF THE NATIONAL ANIMAL CONTROL ASSOCIATION A GROUP OF FOLKS ONCE KNOWN AS DOG CATCHERS CATS WHICH 10 YEARS AGO GENERATED ABOUT A FOURTH OF COMPLAINTS NOW ACCOUNT FOR 50 OR MORE OF PET PEEVES IN MANY PLACES CAT TONGS BIG PINCERS THAT CAN GRAB OFFENDING FELINES ARE SELLING LIKE HOTCAKES ACCORDING TO WHITCO MANUFACTURING CO A WEATHERFORD TEXAS MAKER OF ANIMALCONTROL GEAR ROAMING CATS HAVE COME TO MENACE SOCIETY AS MUCH AS OR MORE THAN STRAY DOGS DO ACCORDING TO A 1992 NACA POLICY STATEMENT WHICH CALLS FOR CAT LICENSING AND LEASH LAWS CATS CONSORT MORE THAN DOGS DO WITH WILD CARRIERS OF RABIES AND HAVE EVEN BEEN KNOWN TO SHARE DENS WITH SKUNKS SAYS DARLENE LARSON NACA'S PRESIDENT AND ANIMAL CONTROL CHIEF IN BILLINGS MONT CAT EXPERTS ESTIMATE THERE ARE 15 MILLION TO 35 MILLION STRAY CATS IN THE US COMPARED WITH 60 MILLION HOUSECATS ONE BIG PROBLEM IS THAT A LOT OF PEOPLE HAVE THE THEORY THAT NOBODY CAN OWN CATS MUCH LESS SUBJECT THEM TO ANIMALCONTROL LAWS SAYS CAROL MOULTON OF THE AMERICAN HUMANE ASSOCIATION THE ASSOCIATION AND OTHER GROUPS HAVE DECLARED 1993 THE YEAR OF THE CAT TO CALL ATTENTION TO FALLOUT FROM THIS BORNFREE PHILOSOPHY INCLUDING AN OVERPOPULATION CRISIS THAT FORCES US ANIMAL SHELTERS TO KILL SIX MILLION CATS A YEAR IN AN ATTEMPT TO CURB THE CAT PROBLEM MANY TOWNS HAVE ENACTED CATLICENSING LAWS RECENTLY AND SOME EVEN REQUIRE CATS TO BE LEASHED WHEN OUTDOORS BUT ALL THIS SEEMS ABSURD TO MANY CAT PEOPLE LICENSING IS IMPOSSIBLE TO ENFORCE GRIPES JOSEPH FLORIO OF MILTON NJ WHERE CAT LICENSING IS REQUIRED BESIDES IF I HAD A CAT AND I'M NOT SAYING I DO SHE WOULD HAVE HER FRONT CLAWS OUT AND WOULDN'T EVEN GO OUTSIDE MR FLORIO'S CAT IF HE HAD ONE WOULD BE NAMED CHLOE PERHAPS NO FELINE HAS SPARKED A FIERCER FRAY THAN ARLINGTON'S GARFIELD A GLOSSY BLACKANDWHITE NEUTERED MALE IT BEGAN LAST WINTER SAYS MR KAPLAN WHEN GARFIELD BROKE INTO OUR HOUSE ATTEMPTING TO FIGHT WITH OUR LITTLE CAT WHO WAS ONLY A KITTEN AT THE TIME AND THEN ATTACKED MY WIFE AND TWO DAUGHTERS WITHOUT PROVOCATION HE HUNCHES DOWN AND COMES AT YOU QUICKLY CROSSEYED AND MEAN MR KAPLAN'S DAUGHTER SARA NINE ADDED IN A LETTER TO TOWN HALL THAT I REFUSE TO RIDE MY BIKE THINKING HE WILL ATTACK ME I HAVE A NUMEROUS BUNCH OF SCARS ON MY LEFT ARM BUT ONLY ONE VISIBLE GARFIELD IS THE MOST LOVING CAT WE EVER HAD THE KIND THAT SNUGGLES AND PURRS IN BED EACH MORNING COUNTERS HIS OWNER LILLIAN BROOKS MAYBE GARFIELD DOES NOT LIKE THE KAPLANS BECAUSE AS THEY ADMIT THEY THREW GOLF BALLS AT HIM SHE ADDED IN A LETTER ONE OF A SHEAF PUBLISHED AS THE GARFIELD PAPERS BY THE WEEKLY ARLINGTON ADVOCATE MR KAPLAN CONCEDES HE ZINGED BALLS AT GARFIELD BUT HE INSISTS THAT HE HAS EXERCISED EXTREME SELFCONTROL I HAVE NEVER THREATENED TO KILL THE CAT IN THE PRESENCE OF THE BROOKS FAMILY MR JENKINS SAYS GARFIELD ALSO BEGAN PESTERING HIM LAST WINTER THINGS SUDDENLY TURNED VIOLENT AT 3 AM ON MAY 13 WHEN THE CAT CRASHED THROUGH A SCREEN ON AN OPEN SKYLIGHT AND LANDED IN THE FAMILY ROOM AFTER SMASHING SEVERAL GLASS OBJECTS GARFIELD SQUARED OFF AGAINST MITTENS AND GRISWOLD THE JENKINS' NEUTERED CATS THEN SAYS MR JENKINS THIS THING CAME UP OVER A TABLE AND GOT ME HE WAS TOTALLY VICIOUS TRAILING BLOOD FROM A PUNCTURE WOUND ON HIS HAND MR JENKINS FINALLY TRAPPED GARFIELD UNDER A LAUNDRY BASKET AND EJECTED HIM LATER HIS INJURED HAND BALLOONED REQUIRING THREE TRIPS TO THE HOSPITAL MRS BROOKS SAYS THAT IF GARFIELD BIT MR JENKINS IT WAS BECAUSE HE WAS SCARED TO DEATH AT FINDING HIMSELF IN A STRANGE HOUSE AFTER FALLING THROUGH A SKYLIGHT THAT SHOULD HAVE BEEN REINFORCED IF GARFIELD WERE TO FALL THROUGH AGAIN HE MIGHT SERIOUSLY HURT HIMSELF IN JUNE TOWN HALL TOOK UP THE GARFIELD ISSUE BUT ARLINGTON OFFICIALS LIKE THOSE IN MOST TOWNS HAVE NO AUTHORITY TO CRACK DOWN ON A NONSTRAY CAT THEIR ATTEMPT TO MAKE PEACE AMONG THE NEIGHBORS ENDED IN A SHOUTING MATCH AT TOWN HALL MEANWHILE THE BROOKS FAMILY TEMPORARILY REMOVED GARFIELD FOR SAFEKEEPING TO A RELATIVE'S HOUSE IN ANOTHER NEIGHBORHOOD BUT THEN HE DISAPPEARED WE'RE HEARTBROKEN SAYS MRS BROOKS FOUL PLAY ISN'T SUSPECTED 9308180058 930818 INSIDE TRACK TEXAS OIL MAN PICKENS BUYS SHARES OF MESA BY CALEB SOLOMON AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL TEXAS OIL MAN BOONE PICKENS SOARED TO PROMINENCE IN THE 1980S BY BUYING SHARES OF OTHER PEOPLE'S COMPANIES FREQUENTLY THROWING THEM INTO THE TAKEOVER PIT NOW HE'S BUYING SHARES OF THE COMPANY HE FOUNDED MESA INC WHICH IS TRYING TO CLIMB OUT OF A DITCH MR PICKENS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE DALLAS ENERGY GROUP HAS SPENT ABOUT 23 MILLION TO ACQUIRE 380000 MESA SHARES SINCE LATE APRIL ACCORDING TO SECURITIES AND EXCHANGE COMMISSION FILINGS FIVE OTHER MESA INSIDERS HAVE ALSO BEEN BUYING SINCE APRIL ACCUMULATING A COMBINED 17620 SHARES AT PRICES RANGING FROM 575 TO 675 EACH SEC FILINGS SHOW YESTERDAY MESA WAS UNCHANGED AT 675 A SHARE IN TRADING ON THE NEW YORK STOCK EXCHANGE MR PICKENS'S LARGEST PURCHASE 100000 SHARES WAS MADE MAY 11 AT 575 EACH THE SMALLEST 1000 SHARES FOR 6 APIECE WAS ON JULY 6 THE FILINGS SHOW BETWEEN JULY 6 AND JULY 21 HE LOADED UP ON 25000 SHARES THE PURCHASES BRING HIS TOTAL HOLDINGS IN THE NATURALGAS EXPLORATION AND PRODUCTION COMPANY TO SLIGHTLY MORE THAN TWO MILLION SHARES INCLUDING A CONVERTIBLE GENERAL PARTNERSHIP INTEREST THE COMPANY SAYS ADDING OPTIONS THAT HE CAN EXERCISE BRINGS HIS MESA STAKE TO 613 IF YOU GO BACK AND LOOK AT MY HISTORY OVER THE YEARS I'VE BEEN A PURCHASER IN THE OPEN MARKET OF MESA STOCK THAT'S NOT UNUSUAL MR PICKENS SAYS FROM HIS DALLAS OFFICE I'M JUST WILLING TO PUT MY MONEY UP AND PLACE THE BET HE SAYS HE HAS SOLD MESA STOCK ONLY ONCE ABOUT 15 YEARS AGO WHEN HE NEEDED TO REDUCE SOME BANK DEBT SINCE THEN I'VE BUILT UP MY OWNERSHIP HE NOTES THE MOST RECENT PURCHASES COME AT A CRUCIAL TIME FOR MESA AN OVERLEVERAGED COMPANY THAT BEGINNING IN THE MID1980S CONSISTENTLY BET WRONGLY THAT NATURALGAS PRICES WOULD SURGE MR PICKENS REMAINS ETERNALLY OPTIMISTIC THEY WILL TO BUY SOME BREATHING ROOM IN THE MEANTIME THE COMPANY HOPES TO COMPLETE A DEBT EXCHANGE OFFER THAT EXPIRES TODAY IF COMPLETED MESA WOULD BE ABLE TO DEFER AROUND 150 MILLION OF INTEREST PAYMENTS FOR TWO YEARS AFTER SEVERAL MONTHS OF NEGOTIATIONS WITH HOLDERS OF 600 MILLION OF SUBORDINATED NOTES MESA AGREED IN JUNE TO EXCHANGE THE NOTES FOR A PACKAGE OF NEW SECURITIES COMPANY OFFICIALS AND ITS PROXY SOLICITORS WERE WORKING THE PHONES YESTERDAY TO ENSURE THAT HOLDERS WHO HAD COMMITTED TO THE OFFER WENT THROUGH WITH THE EXCHANGE THE OFFER IS CONTINGENT ON THE EXCHANGE OF 75 OF THE NOTES WE EXPECTED 80 OR MORE AND WE'LL GET THAT MR PICKENS PREDICTS FOR MESA THE BEST QUICKFIX WOULD BE A FURTHER RISE IN NATURAL GAS PRICES WHICH HAVE CLIMBED FROM THEIR LOW OF AROUND 1 PER THOUSAND CUBIC FEET IN FEBRUARY 1992 TO LEVELS ABOVE 2 FOR MOST OF THIS YEAR BRIAN DUTT AN OIL AND GAS ANALYST AT HOWARD WEIL LABOUISSE FRIEDRICHS INC IN NEW ORLEANS SAYS MESA'S SOLE SALVATION IS ANOTHER INCREASE IN NATURAL GAS PRICES AND HE THINKS THAT WILL COME SOON MESA HAS BEEN BURDENED WITH SO MUCH DEBT MR DUTT SAYS THAT THEY'RE VIEWED MORE AS A FINANCIAL WORKOUT THAN A VIABLE COMPANY AT THIS POINT A NUMBER OF SECURITIES ANALYSTS HAVE STOPPED TRACKING MESA BECAUSE OF THE COMPANY'S COMPLEX FINANCIAL SITUATION MR DUTT SAYS THE COMPANY HASN'T BEEN ABLE TO DO MUCH IN THE FIELD AND THEY'VE HAD TO SELL SOME OF THEIR PRIME PROPERTIES IN ORDER TO SURVIVE HE ADDS MY FIRM IS EXTREMELY BULLISH ON NATURAL GAS PRICES AND FURTHER INCREASES IN THOSE PRICES WILL BE THE SAVIOR OF MESA NOT ITS CONTINUAL FINANCIAL RESTRUCTURING PLANS MR PICKENS AGREES ANOTHER 10 TO 20 RISE IN THE GAS PRICE TAKES THE FOOT OFF OUR NECK HE SAYS IF PRICES CLIMB TO AN ANNUAL AVERAGE OF 275 HE CONTENDS THE COMPANY WILL FINALLY TURN A PROFIT IN 1992 MESA REPORTED A NET LOSS OF 892 MILLION OR 231 A SHARE INCLUDING GAINS OF 123 MILLION ON THE SALE OF PROPERTIES REVENUE WAS 2371 MILLION BUT PREDICTING NATURAL GAS PRICES IS A LOT LIKE FORECASTING NEXT WEEK'S WEATHER PETER BEUTEL AN ENERGY SPECIALIST WITH BRODY WHITE & CO IN NEW YORK SAYS PRICES ARE LIKELY TO SLIP FROM CURRENT LEVELS OF AROUND 237 TO A RANGE OF 180 TO 2 IN NOVEMBER BY NEXT SPRING HE PREDICTS PRICES COULD SURGE TO 3 MR PICKENS ARGUES THAT GAS PRICES WILL INDEED KEEP RISING BECAUSE YEARS OF SHARPLY REDUCED US DRILLING FOR GAS WILL FINALLY RESULT IN A TIGHT SUPPLY THE OVERSUPPLY HAS KEPT A LID ON PRICES FOR SOME TIME IN ADDITION HE NOTES THAT GAS DEMAND HAS BEEN RISING IN RECENT YEARS OF COURSE MR PICKENS HAS BEEN BULLISH FOR A LONG TIME AND FREELY CONCEDES IT WAS THE CAUSE OF MESA'S NEARRUIN WE DID IT TO OURSELVES HE SAYS WE BET ON THE GAS MARKET AND IT WENT THE WRONG WAY BETWEEN 1986 AND 1990 MESA PAID SHAREHOLDERS AND PARTNERS ABOUT 11 BILLION IN INCOME DISTRIBUTIONS AND BOOSTED DEBT OR SOLD RESERVES WHEN PROFITS COULDN'T COVER THE PAYOUTS WE JUST GUTTED THE EQUITY IN THE COMPANY HE SAYS I WISH TO HELL WE PAID OUT ONLY HALF OF IT OR NONE OF IT HE ADDS IF WE HADN'T WE'D LOOK LIKE KING KONG ON THE BALANCE SHEET SOME ANALYSTS SAY MESA HAS MORE PROBLEMS TO CONTEND WITH THAN SIMPLY AN ONEROUS DEBT LOAD AND FICKLE NATURAL GAS PRICES THEY'RE NOT SETTING THE PACE IN TERMS OF BEING A LOWCOST PRODUCER SAYS SCOTT DAVIS AN ANALYST WITH JS HEROLD A GREENWICH CONN ENERGY RESEARCH COMPANY GIVEN THEIR DEBT SITUATION THEY NEED TO DEMONSTRATE AN ABILITY TO KEEP COSTS DOWN THE FORMER CORPORATE RAIDER SAYS HE IS SO CONFIDENT IN THE COMPANY'S FUTURE THAT HE ACTUALLY TRIED TO INCREASE HIS STOCK HOLDINGS IN EARLY SPRING OF THIS YEAR WHEN THE PRICE DROPPED BELOW 4 A SHARE BUT HE SAYS COMPANY LAWYERS SAID THAT BECAUSE MESA WAS SELLING RESERVES THEN SECURITIES LAW PREVENTED HIM AS AN INSIDER FROM BUYING SHARES AT THE TIME AS SOON AS THE BUYING WINDOW OPENED HE SAYS HE WENT THROUGH IT RANDALL L TOBIAS THE NEW CHAIRMAN OF ELI LILLY & CO SPENT 1130000 ON JULY 28 TO ACQUIRE 23403 SHARES IN THE PHARMACEUTICALS COMPANY SEC DATA SHOW HE BOUGHT THE SHARES AS A DEMONSTRATION OF HIS CONFIDENCE IN THE COMPANY AND ITS EMPLOYEES A COMPANY SPOKESMAN SAID MR TOBIAS HAS BEEN A BOARD MEMBER OF LILLY SINCE 1986 AND UNTIL RECENTLY WAS VICE CHAIRMAN OF AMERICAN TELEPHONE & TELEGRAPH CO HE BECAME CHAIRMAN OF LILLY JUNE 25 HE INTENDS TO CONTINUE TO INVEST IN LILLY STOCK AND BELIEVES THE SHARES OFFER EXTREMELY GOOD VALUE THE SPOKESMAN SAID MR TOBIAS WAS TRAVELING AND COULDN'T BE REACHED FOR COMMENT 9308180057 930818 REVIEW & OUTLOOK EDITORIAL NAFTA BEFORE HEALTH PRESIDENT CLINTON USED THE NATIONAL GOVERNORS' ASSOCIATION MEETING IN TULSA MONDAY AS A PULPIT TO LOBBY FOR HIS HOPEDFOR HEALTH CARE OVERHAUL MEANWHILE THE NORTH AMERICAN FREE TRADE AGREEMENT WAS RELEGATED TO A BRIEF MENTION AND SOME LOBBYING AT A PRIVATE LUNCHEON FOR THE GOVERNORS THE GOVERNORS THEMSELVES HOWEVER APPEARED TO HAVE THEIR PRIORITIES EXACTLY RIGHT THE NGA'S COMMITTEE ON ECONOMIC DEVELOPMENT APPROVED AN UNQUALIFIED RESOLUTION BACKING NAFTA THE GOVERNORS' MESSAGE TO PRESIDENT CLINTON WAS CLEAR RATHER THAN WADE IN NOW TO THE HEALTH CARE MORASS THE BETTER COURSE IS TO PURSUE AN INITIATIVE THAT WILL ACTUALLY GROW THE ECONOMY NAFTA'S THE TICKET THE CASE FOR PUTTING NAFTA AHEAD OF HEALTH CARE IS REALLY PRETTY OVERWHELMING THE ADMINISTRATION IS DRAGGING ALONG WITH A REPUTATION FOR BEING ROLLABLE BY THE LOUDEST PUSHIEST SPECIAL INTERESTS FOR ALL THAT THE PRESIDENT STILL HAS THE REMARKABLE SKILL OF TURNING PEOPLE INTO BELIEVERS WISCONSIN'S REPUBLICAN GOVERNOR TOMMY THOMPSON EARLY ON COMPLAINED THAT MR CLINTON'S TEPID SUPPORT FOR NAFTA CAME FROM HIS FEAR OF SPECIAL INTEREST GROUPS WHO HAVE COME OUT AGAINST IT THEN HE CAME AWAY FROM HIS MEETING WITH MR CLINTON PREDICTING A MUCH MORE AGGRESSIVE CAMPAIGN BY THE PRESIDENT IN FAVOR OF NAFTA BUT THESE GOOD FIRST IMPRESSIONS HAVE A WAY OF EVAPORATING OR BEING DASHED A NAFTA VICTORY WOULD ADD REALITY TO MR CLINTON'S OFTEN REMARKED UPON POTENTIAL THAT OF COURSE WILL REQUIRE THE VIRTUE OF STEADFASTNESS AGAINST DEMOCRATIC MOSSBACKS IMMEDIATELY AFTER FRIDAY'S ANNOUNCEMENT OF A NAFTA BREAKTHROUGH ON THE SUPPLEMENTAL AGREEMENTS ELECTRICAL WORKERS PRESIDENT WILLIAM BYWATER INTONED ANYBODY THAT VOTES FOR THIS AGREEMENT WE'RE GOING TO GO OUT TO DEFEAT PERIOD BUT THE INCREASING INTRANSIGENCE OF LABOR ON NAFTA SHOWS THAT THEIR INTEREST IN ITS DEFEAT RUNS DEEPER THAN ANY CONCERN FOR THE COLLECTIVE US WORK FORCE BEYOND THIS THERE IS THE OBVIOUS QUESTION OF WHY PRESIDENT CLINTON SHOULD CEDE THE MANTLE OF GLOBAL LEADERSHIP TO A SELFINTERESTED GROUP THAT REPRESENTS LESS THAN 12 OF THE PRIVATE WORK FORCE EQUALLY IMPORTANT A VICTORY ON NAFTA WOULD WREST CONTROL ON INTERNATIONAL ISSUES AWAY FROM THE GADFLIES IN HIS OWN PARTY SUCH AS DICK GEPHARDT NAFTA WOULD ALSO BRIDGE THE CHASM OF CREDIBILITY THIS ADMINISTRATION HAS WITH THE BUSINESS COMMUNITY THE AGREEMENT WOULD OFFER A MUCHNEEDED RESPITE FROM THE MANTRA OF TAXES REGULATION AND THREATS OF PRICE CONTROLS BUSINESS LEADERS NEED SOME SIGN THAT THIS ADMINISTRATION NOT TO MENTION THE DEMOCRATIC PARTY CAN ACT RATIONALLY IN THE PRESENCE OF A SERIOUS ECONOMIC ISSUE THERE IS ALWAYS A DANGER THAT THE DEAL WILL BE LAWYERED TO DEATH IF THE SIDE AGREEMENTS BECOME TOO MUCH THE FOCUS THERE ARE NOW SEVERAL DIFFERENT INTERNATIONAL SECRETARIATS THAT HAVE BEEN CREATED THROUGH THE SIDE AGREEMENTS TO MONITOR THE BEHAVIOR OF THE THREE MARKETS WE TRUST THAT MICKEY KANTOR WILL RECOGNIZE WHEN IT'S TIME TO SEND THE LAWYERS OUT OF THE ROOM THE PEROT FACTOR AS ALWAYS REMAINS A WILD CARD MOST LIKELY MR PEROT'S BIG SUCKING SOUND DEMAGOGUERY WILL IN THE END LOSE HIM THE SUPPORT OF A LOT OF SERIOUS PEOPLE OUTSIDE HIS CORE BELIEVERS BUT SOMEONE HAS TO PUSH BACK AND MR CLINTON CLEARLY HAS THE INTELLECTUAL SKILLS TO COUNTER WITH A STRONG SUBSTANTIVE CASE ABSENT THAT COUNTEROFFENSIVE YOU RISK LOSING THE WEAKEST POLITICAL LINKS MICHIGAN'S SENATOR DON RIEGLE FOR INSTANCE CLAIMED THAT A SIGNIFICANT RISE IN HIS POPULARITY OVER THE SUMMER CAME FROM HIS OPPOSITION TO NAFTA LET'S PUT IT THIS WAY HEALTH CARE IS STILL SITTING IN THE LOCKER ROOM NAFTA IS ON THE FIELD AND IT'S ABOUT 25 YARDS FROM THE GOAL LINE THE CLINTONITES MAY CALL THAT BUDGET DEAL A VICTORY BUT THE FACT IS THE PRESIDENT HIMSELF STILL HAS TO BE SEEN CARRYING THE BALL IN FOR A BIG SCORE IF THEY PUNT ON NAFTA NOW THE STANDS ARE GOING TO START EMPTYING OUT 9308180056 930818 WHO'S NEWS GAINSCO INC GAINSCO INC FORT WORTH TEXAS JACK L JOHNSON SENIOR VICE PRESIDENT FOR UNDERWRITING WAS ELECTED A DIRECTOR OF THIS INSURANCE HOLDING COMPANY MR JOHNSON 59 YEARS OLD SUCCEEDS KENNETH PETERSON 58 A GAINSCO EXECUTIVE VICE PRESIDENT WHO RESIGNED IN JUNE TO PURSUE OTHER BUSINESS OPPORTUNITIES A COMPANY SPOKESMAN SAID 9308180055 930818 REVIEW & OUTLOOK EDITORIAL DIRECTIVE 13 BILL CLINTON HAS BEEN JUSTLY PRAISED FOR RECOGNIZING THE IMPORTANCE OF BORIS YELTSIN TO THE WEST'S LONGTERM SECURITY INTERESTS IF EXCOMMUNIST DIEHARDS SUCCEED IN BLOCKING THE YELTSIN PUSH FOR A NEW DEMOCRATIC CONSTITUTION RUSSIA COULD YET REVERT BACK TO STATISM AND MILITARISM ITS COLD WAR INSTITUTIONS THOUGH WEAKENED AND SOMEWHAT MARGINALIZED REMAIN INTACT MR CLINTON SEEMS TO RECOGNIZE THAT RUSSIA STILL DESERVES TOP PRIORITY IN US FOREIGN POLICY BUT A US PRESIDENT MUST ALSO BE SENSITIVE TO RUSSIA'S INTERNAL POLITICAL DYNAMICS WHICH REQUIRES A BIT MORE SOPHISTICATION THAT'S WHY WE ARE TROUBLED BY A PAPER CALLED DIRECTIVE 13 THAT THE CLINTON ADMINISTRATION HAS BEEN QUIETLY CIRCULATING AT FRIENDLY FOREIGN MINISTRIES THERESE RAPHAEL DISCUSSES IT IN THE COLUMNS NEARBY SEE RELATED ARTICLE DEATH IN GEORGIA SHOWS PERILS OF INTERVENTION WSJ AUG 18 1993 AS SHE POINTS OUT EUROPEAN DIPLOMATS ARE WORRIED THAT THE POLICY IT OUTLINES COULD PUT AT RISK MR YELTSIN'S DRIVE FOR DEMOCRACY DIRECTIVE 13 PROPOSES EXTERNAL MEDIATION OF DISPUTES THAT HAVE ARISEN OR MIGHT ARISE BETWEEN RUSSIA AND OTHER FORMER SOVIET REPUBLICS IT PROPOSES INTERNATIONALIZING THESE PROBLEMS UNDER THE AUSPICES OF THE US AND UN THIS PUSHES AGAINST RUSSIA'S ASSERTION THAT PEACEKEEPING IN THE 15NATION FORMER SOVIET EMPIRE IS ITS PREROGATIVE IN ESSENCE DIRECTIVE 13 IS A US TILT AWAY FROM A RUSSIACENTERED POLICY AND TOWARD A GREATER RECOGNITION OF THE ETHNOCENTRIC CLAIMS OF NEW NATIONS ON RUSSIA'S PERIPHERY IN PRINCIPLE WE AGREE THE BUSH STATE DEPARTMENT WAS UNCONSCIONABLY SLOW IN SUPPORTING THE OVERWHELMING POPULAR DEMAND FOR INDEPENDENCE IN THE BALTIC STATES AND UKRAINE SOME OF THIS ALOOFNESS CARRIED OVER INTO THE CLINTON ADMINISTRATION BUT AS WITH THE FOREIGN OFFICIALS WHO HAVE READ DIRECTIVE 13 WE ARE CONCERNED THAT THE US IS ADOPTING A CLUMSY AND POTENTIALLY DANGEROUS APPROACH TOWARD REMEDYING PAST NEGLECT IF THE WEST INVOLVES ITSELF AS A MEDIATOR IN THE FORMER SOVIET REPUBLICS IT WILL NOT ONLY HAVE A VERY WEAK HAND TO PLAY BUT WILL RISK FANNING THE FIRES OF RUSSIAN NATIONALISM THE PARALLEL WITH YUGOSLAVIA WHERE THE WEST ALSO SOUGHT TO MEDIATE IS INESCAPABLE AS WITH THE SERBS MANY RUSSIANS ASSERT THAT THEIR GOVERNMENT MUST PROTECT NATIONALS NOW LIVING IN ANOTHER STATE SERBIAN MILITARY FORCES MARCHED INTO CROATIA AND BOSNIAHERZEGOVINA OSTENSIBLY IN SUPPORT OF RESIDENT SERBS RUSSIAN TROOPS HAVE BEEN INVOLVED IN TWO SMALL WARS IN MOLDOVA AND THE ABKHAZIA REGION OF GEORGIA ON BEHALF OF WHAT ARE CALLED NEARABROAD RUSSIANS IN THOSE FORMER SOVIET REPUBLICS SOME OF MR YELTSIN'S ENEMIES IN RUSSIA ARE DEAD RINGERS FOR SERBIA'S SLOBODAN MILOSEVIC THEY ARE OLD COMMUNIST MUSCLEMEN WHO WANT TO TURN BACK THE CLOCK WHAT BETTER WAY TO ORGANIZE SUPPORT THAN MOBILIZING ETHNIC NATIONALISM IT IS NOT HARD TO IMAGINE A WEAKLOOKING WESTERN MEDIATION OFFER MERELY FANNING THE FIRE IT COULD ENCOURAGE RUSSIAN NATIONALISTS TO DEMONSTRATE THAT THEY STILL ARE BOSS IN THEIR OWN REGION AS THE SERBS ALSO SLAVIC DID SO EFFECTIVELY IN THEIRS NONE OF THIS IS TO COUNSEL TIMIDITY MR CLINTON WHILE VIGOROUSLY SUPPORTING MR YELTSIN'S ASPIRATIONS FOR DEMOCRATIC REFORM SHOULD MAKE CLEAR THAT THE US WILL LOOK UNKINDLY ON ANY NEW HEAVYHANDED RUSSIAN APPROACH TOWARD THE BALTIC STATES HE IS NOT PRECLUDED FROM COUNSELING ESTONIA TO TAKE A MODERATE APPROACH TOWARD THE RIGHTS OF ETHNIC RUSSIANS HE IS ENTITLED TO SYMPATHIZE WITH UKRAINE'S NATIONAL ASPIRATIONS THERE IS A DISTINCT DIFFERENCE BETWEEN MEDIATION AND ASSERTING US NATIONAL INTERESTS WHY SHOULD ANYONE MEDIATE BETWEEN RUSSIA AND GEORGIA FOR EXAMPLE SURELY MR YELTSIN AND EDUARD SHEVARDNADZE CAN HANDLE THAT IT IS HARD TO IMAGINE ANY VITAL US INTEREST IN WHAT GOES ON BETWEEN RUSSIA AND TAJIKISTAN OR MOLDOVA AS YUGOSLAVIA SURELY HAS DEMONSTRATED IT IS NOT VERY WISE TO ENTER INTO DISPUTES UNLESS YOU HAVE THE MEANS AND WILL TO DO SOMETHING ABOUT THEM TO US A DOCUMENT LIKE DIRECTIVE 13 REFLECTS A NOTALTOGETHER SERIOUS APPROACH TO FOREIGN POLICY CONCEPTS ARE FINE BUT GOOD FOREIGN POLICY MUST BE BASED ON A BALANCED VIEW OF RISKS AND REWARDS THE RISKS OF BLOWING BORIS YELTSIN'S REFORM EFFORTS OUT OF THE WATER FAR OUTWEIGH ANY GAINS WE COULD IMAGINE FROM US POSTURING AS A MEDIATOR OF ISSUES OF WHICH IT KNOWS VERY LITTLE IF WE'RE LUCKY DIRECTIVE 13 WILL DIE BEFORE IT BECOMES POLICY IF WE'RE NOT WE CAN ONLY HOPE FOR THE BEST 9308180054 930818 MARKETING & MEDIA ADVERTISING SMITH/GREENLAND GETS DROPPED FOR SCHIEFFELIN LIQUOR ACCOUNT BY LAURA BIRD SPIRITS IMPORTER SCHIEFFELIN & SOMERSET ENDED A 26YEAR RELATIONSHIP WITH AD AGENCY SMITH/GREENLAND AND AWARDED SOME 25 MILLION IN BILLINGS FOR ITS TANQUERAY AND JOHNNIE WALKER BLACK BRANDS TO OTHER AGENCIES DEALING A DEVASTATING BLOW TO THE SMALL NEW YORK SHOP SMITH/GREENLAND IMMEDIATELY RETALIATED IT'S ONE OF THEIR MORE STUPID DECISIONS LEO GREENLAND CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID BLUNTLY SAYING THAT HIS AGENCY HAD REVIVED THE FORTUNES OF JOHNNIE WALKER BLACK BY TAKING IT ON IN 1967 JUST AS THE BRAND WAS ABOUT TO BE PULLED FROM THE US MARKET HE ADDED TWENTYSIX YEARS LATER IT'S ALL HISTORY THE SHIFT BY SCHIEFFELIN WHITTLES SMITH/GREENLAND'S BILLINGS BY MORE THAN HALF TO 15 MILLION ALTHOUGH MR GREENLAND VOWS THE AGENCY CAN STAY EXTANT ITS LOSS AMOUNTS TO A 15 MILLION GAIN FOR HOT SHOP DEUTSCH/DWORIN ADVERTISING WHICH WON THE BILLINGS FOR TANQUERAY GIN AND TANQUERAY STERLING VODKA AFTER A SIXMONTH PITCH AGAINST AMMIRATI & PURIS NEW YORK A NEW CAMPAIGN IS EXPECTED IN 1994 SAID NICK FELL SENIOR VICE PRESIDENT AT SCHIEFFELIN & SOMERSET A JOINT VENTURE OF GUINNESS PLC AND LVMH MOET HENNESSY LOUIS VUITTON SCHIEFFELIN ALSO MOVED THE 10 MILLION JOHNNIE WALKER BLACK SCOTCH ACCOUNT CONSOLIDATING IT AT AVRETT FREE & GINSBERG NEW YORK WHICH HAS BEEN CREATING ADS FOR JOHNNIE WALKER RED SINCE 1991 MR FELL SAID JOHNNIE WALKER BLACK'S CURRENT CAMPAIGN ULTIMATELY THERE'S BLACK CREATED BY SMITH/GREENLAND WOULD CONTINUE TO RUN GREY ADVERTISING NEW YORK RETAINS MEDIA BUYING DUTIES FOR BOTH BRANDS SMITH/GREENLAND ALSO HAD BEEN AT WORK ON ANOTHER SCOTCH ENTRY JOHNNIE WALKER BLUE WHICH MIGHT BETTER BE DUBBED JOHNNIE WALKER GREEN GIVEN ITS HEFTY PRICE TAG 165 A BOTTLE NEW ADS FOR THE BLUE LABEL ARE TO BREAK IN OCTOBER MR GREENLAND SAID ALTHOUGH SCHIEFFELIN SAID NO DATE HAS BEEN SET THE WIN CAPS AN ASTONISHING RUN OF NEW BUSINESS FOR DEUTSCH/DWORIN WHICH HAS RACKED UP 80 MILLION IN NEW BILLINGS IN RECENT MONTHS THE AGENCY PLANS TO HIRE ABOUT 40 EMPLOYEES AND SIT OUT NEW BUSINESS PITCHES FOR THE REST OF THE YEAR SAID PRESIDENT STEVE DWORIN SMITH/GREENLAND HAD CREATED SEVERAL MEMORABLE CAMPAIGNS FOR THE TANQUERAY AND JOHNNIE WALKER BRANDS FOR TANQUERAY WHICH IT HAS HANDLED FOR 19 YEARS SMITH/GREENLAND PENNED THE MEMORABLE TAGLINE OWN A BOTTLE A CAMPAIGN THAT HELPED THE BRAND SURPASS BEEFEATER AS THE NO 1 IMPORTED GIN MR GREENLAND SAYS WE MADE TANQUERAY INTO A POSSESSION HE SAYS SMITH/GREENLAND CREATED A CLASSIC OF LIQUOR ADVERTISING WHEN IT PICTURED TWO SIDEBYSIDE MANSIONS AND A MAN KNOCKING ON HIS NEIGHBOR'S DOOR INQUIRING MAY I BORROW A CUP OF JOHNNIE WALKER BLACK FOR JOHNNIE WALKER RED WHICH SMITH/GREENLAND WON IN 1977 AND LOST TO AVRETT TWO YEARS AGO THE SHOP CREATED A CONTROVERSIAL AD THAT SHOWED A REARVIEW SHOT OF TWO WOMEN JOGGING ON THE BEACH HE LOVES MY MIND AND HE DRINKS JOHNNIE WALKER THE AD SAID DRAWING HISSES FROM FEMALE CONSUMERS AND LOTS OF PUBLICITY THE AGENCY ALSO CREATED A BILLBOARD CAMPAIGN FOR THE BRAND IN WHICH A BIKINICLAD WOMAN NAMED JULIE INVITED MEN TO CALL A JOHNNIE WALKER RED HOTLINE TO HEAR ABOUT HOT NIGHTSPOTS THERE WAS ALSO A MALE VERSION FOR FEMALE SCOTCH FANS MR GREENLAND SAYS THAT WORK GENERATED A LOT OF BUZZ BUT IT DIDN'T FIT THE CLIENT'S IMAGE OF WHAT SCOTCH SHOULD BE MR GREENLAND SAYS NOW THEY HATED IT AND THAT'S WHY SCOTCH IS GOING DOWN THE DRAIN MR GREENLAND SAYS AVRETT FREE'S ADS FOR JOHNNIE WALKER RED WHICH SHOW A GLASS OF SCOTCH AND ROCKS OVER THE CAPTION THE RICHNESS OF RED MISS THE MARK IF YOU THINK YOU CAN SELL SCOTCH BY SHOWING A PICTURE OF SCOTCH IN A GLASS YOU BETTER ENROLL IN ADVERTISING 101 HE SAYS I'M SORRY HE FEELS THAT WAY SAYS JACK AVRETT CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF AVRETT FREE ADDING THAT THE RICHNESS CAMPAIGN PERFORMED WELL IN TESTS AND IN THE MARKETPLACE THE REASON WE WON THE BLACK IS THAT RED IS DOING SO WELL THE SWITCH IN AGENCIES FOR JOHNNIE WALKER BLACK COMES AT A CURIOUS MOMENT THE RED AND BLACK BRANDS ALIKE ARE CURRENTLY SELLING BETTER THAN MOST OTHER IMPORTED SCOTCHES ACCORDING TO FRANK WALTERS SENIOR VICE PRESIDENT AND DIRECTOR OF RESEARCH AT IMPACT AN INDUSTRY PUBLICATION OF M SHANKEN COMMUNICATIONS INC WHILE IMPORTED SCOTCH SALES OVERALL WERE DOWN 1 LAST YEAR JOHNNIE WALKER BLACK SALES TO RETAILERS WERE UP 4 JOHNNIE WALKER RED SALES TO RETAILERS WERE UP 1 FOR TANQUERAY HOWEVER THE AGENCY MOVE SEEMS TO COME NOT A MOMENT TOO SOON TANQUERAY GIN SALES WERE OFF 1 LAST YEAR ACCORDING TO MR WALTERS ON PAR WITH THE CATEGORY'S DECLINE TANQUERAY STERLING WHICH SCHIEFFELIN LAUNCHED TO COMPETE WITH THE LIKES OF ABSOLUT AND STOLICHNAYA SKIDDED 17 WHILE IMPORTED VODKA SALES OVERALL WERE UP 1 SCHIEFFELIN'S MR FELL SAYS SMITH/GREENLAND'S CREATIVE WORK ON TANQUERAY APPEALS ONLY TO PEOPLE WHO ARE ALREADY INTERESTED IN WHITE SPIRITS THE MAJOR ISSUE IS THAT IT GO BEYOND APPEALING TO ITS EXISTING AUDIENCE BUT IDEAS ON CREATIVE WORK TO REPLACE THE CAMPAIGN HAVEN'T BEEN DECIDED OR EVEN PRESENTED HE CONCEDES IMPORTEDGIN DRINKERS ARE CONSIDERABLY OLDER THAN YOU'D LIKE THEM TO BE MR FELL SAYS YOU HAVE TO RECRUIT PEOPLE BEFORE THEY'RE 30 BY THEN THEY'VE NARROWED DOWN THEIR PORTFOLIO OF DRINKS CREATING HIP ADS FOR YOUNGER CONSUMERS IS MORE OR LESS A SPECIALTY AT DEUTSCH AND INDEED IT WAS THE AGENCY'S TONGUEINCHEEK COMMERCIALS FOR IKEA THE SWEDISH FURNITURE CHAIN THAT CAUGHT THE EYE OF SCHIEFFELIN EXECUTIVES WE WERE BLOWN AWAY BY IT MR FELL SAID IT STOOD OUT IN THE GENRE OF AMERICAN HEAVYPITCH ADVERTISING MR FELL SAYS SCHIEFFELIN SEVERED TIES TO SMITH/GREENLAND IN FAVOR OF AGENCIES WE FEEL CONFIDENT CAN TAKE THE BRANDS INTO THE FUTURE MR GREENLAND COUNTERS THAT HE BELIEVES HIS SHOP'S WORK FOR THE BRANDS FUELED THEIR GROWTH HE'LL HAVE THE LAST LAUGH HE SAYS IF SCHIEFFELIN CONTINUES RUNNING UNSEEN EXECUTIONS FROM THE SMITH/GREENLAND CAMPAIGN EVEN AFTER THE NEW AGENCIES TAKE CHARGE BUT I'M LAUGHING AND THEY HAVE THE BUSINESS HE SAYS INTERNATIONAL BUSINESS MACHINES CORP SELECTED FIVE FINALISTS FOR ITS ESTIMATED 40 MILLION DOMESTIC PERSONALCOMPUTER ACCOUNT REVIEW INDUSTRY EXECUTIVES SAID THEY ARE CHIAT/DAY VENICE CALIF TWO OMNICOM GROUP SHOPS GOODBY BERLIN & SILVERSTEIN OF SAN FRANCISCO AND MERKLEY NEWMAN HARTY OF NEW YORK LEO BURNETT CHICAGO AND THE INCUMBENT INTERPUBLIC GROUP'S LINTAS NEW YORK AN IBM SPOKESWOMAN DECLINED TO COMMENT ON THE REVIEW IBM PREVIOUSLY SAID IT EXPECTS TO COMPLETE THE REVIEW BY OCTOBER DIED GLEN W FORTINBERRY 65 CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ROSS ROY GROUP TUESDAY IN BLOOMFIELD HILLS MICH OF LEUKEMIA 9308180053 930818 INTERNATIONAL SINGAPORE TO SELL 6 TO 8 OF FIRM IN IPO LESS THAN EXPECTED SINGAPORE SHOWING CHARACTERISTIC CAUTION THE SINGAPORE GOVERNMENT SAID IT EXPECTS TO SELL 6 TO 8 OF STATEOWNED SINGAPORE TELECOMMUNICATIONS PTE IN AN OCTOBER INITIAL PUBLIC OFFERING LESS THAN THE LOCAL STOCK MARKET EXPECTED ROUGHLY HALF THE EXPECTED 900 MILLION TO 12 BILLION SHARES OFFERED WILL BE SOLD IN A TENDER OR AUCTION OPEN TO FOREIGN INVESTORS THE REST WILL BE SOLD AT A FIXED PRICE TO SINGAPORE CITIZENS ONLY ANALYSTS SAID THE OFFERING WILL PROBABLY VALUE ALL OF THE HIGHLY PROFITABLE SINGAPORE TELECOM AT 29 BILLION TO 348 BILLION SINGAPORE DOLLARS US18 BILLION TO US217 BILLION OR 25 TO 30 TIMES FORECAST FISCAL 1994 EARNINGS OF S116 BILLION THE SMALLERTHANEXPECTED INITIAL OFFERING EASES FEARS THAT THE SALE WILL SWAMP THE LOCAL BOURSE WHICH NOW HAS A TOTAL MARKET CAPITALIZATION OF ABOUT S109 BILLION MANY ANALYSTS HAD EXPECTED THE GOVERNMENT TO SELL AS MUCH AS 25 OF THE COMPANY IN ONE SHOT OR ABOUT S5 BILLION OF STOCK AT THE THEN FORECAST PRICE OF 20 TIMES EARNINGS THE SALE OF 8 AT A PRICEEARNINGS RATIO OF 25 TO 30 EQUALS A MANAGEABLE S23 BILLION TO S28 BILLION OF STOCK SAID RICHARD JONES AN ANALYST AT BARING SECURITIES IN SINGAPORE THE GOVERNMENT SAID IT EXPECTS TO SELL AS MUCH AS 25 OF SINGAPORE TELECOM INCLUDING THE INITIAL 6 TO 8 STAKE WITHIN FIVE TO SEVEN YEARS IT SAID IT WILL RETAIN MAJORITY CONTROL FOR THE FORESEEABLE FUTURE THE GOVERNMENT SAID IT PLANS A SECOND PUBLIC OFFERING WITHIN THREE YEARS 9308180052 930818 MCDONNELL'S C17 STIRS NEW CONCERN ON WING PROBLEM BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PROBLEMS THAT AROSE LAST MONTH IN RESUMED TESTS OF THE C17 MILITARY TRANSPORT'S WING ARE STIRRING NEW CONTROVERSY AT THE PENTAGON THE WEEK BEFORE A MAJOR DECISION IS SCHEDULED ON THE TROUBLED PROGRAM IT ISN'T CLEAR HOW SERIOUS THE PROBLEMS ARE BUT THEY ARE BEING WATCHED CLOSELY BY OFFICIALS WHO ARE PREPARING FOR A DEFENSE ACQUISITION BOARD MEETING SCHEDULED AUG 27 TO MAKE A RECOMMENDATION ABOUT THE FUTURE OF THE PROGRAM CURRENTLY THE PENTAGON PLANS TO BUY 120 AIRCRAFT FROM MCDONNELL DOUGLAS CORP FOR ABOUT 40 BILLION BUT DEFENSE OFFICIALS WARNED EARLIER THIS YEAR THAT THE PROGRAM COULD BE ALTERED OR CANCELED IF THE COMPANY DOESN'T IMPROVE ITS PERFORMANCE IT'S A CONCERN AND PEOPLE ARE GATHERING INFORMATION ON IT SAID A DEFENSE OFFICIAL PREPARING FOR THE MEETING IT'S TOO EARLY TO MAKE A FINAL JUDGMENT ABOUT THE SOUNDNESS OF THE WING HE ADDED BUT THE PROBLEMS AT THIS POINT DON'T APPEAR TO BE MAJOR THE SITUATION IS OF SPECIAL CONCERN BECAUSE BOTH WINGS OF A C17 FAILED SPECTACULARLY IN OCTOBER IN A LIMIT LOAD OR STRESS TEST A SUBSEQUENT DEFENSE DEPARTMENT REVIEW ORDERED MCDONNELL DOUGLAS TO ADDRESS AMONG OTHER THINGS STRUCTURAL DEFICIENCIES ON WINGS FLAPS AND SLATS OF THE AIRCRAFT A REPORT BY THE DEFENSE DEPARTMENT'S INSPECTOR GENERAL ON HOW WELL THE COMPANY HAS REMEDIED THE WING IS TO BE RELEASED SOON AND IS EXPECTED TO GIVE THE COMPANY A PASSING GRADE BUT ACCORDING TO A GOVERNMENT ANALYST WHO HAS BEEN CRITICAL OF THE C17 PROGRAM IN THE PAST THE FIRST PROBLEM DISCERNED IN LAST MONTH'S TEST WAS PREMATURE BUCKLING OF ONE PART OF THE WING THEN AFTER THE WING WAS STIFFENED EXTRA STRAIN APPEARED IN ANOTHER PART OF THE WING AN AIR FORCE TECHNICAL EXPERT WHO CLOSELY FOLLOWS THE C17 CONCEDED THAT SOME FAILURES OCCURRED BUT SAID THEY WERE AN EXPECTED PART OF THE TESTING PROCESS MCDONNELL DOUGLAS SPOKESMAN LARRY MCCRACKEN SAID THERE WAS NO BUCKLING OF ANY PART DURING THE STRESS TESTS ON THE NEWLY REINFORCED WING BUT DURING THE TESTING PROCESS HE SAID TWO POUNDS OF STIFFENING METAL PARTS WERE ADDED TO THE MIDPOINT OF THE PLANE'S SINGLE WING AT THE CENTER OF THE TOP OF THE FUSELAGE AFTER TWO STRAIN GAUGES THERE LOOKED A LITTLE SUSPECT SINCE OCTOBER'S FAILURE REDESIGNING THE WING HAS ADDED 840 POUNDS TO THE PLANE'S WEIGHT THE CONTRACT FOR THE C17 REQUIRES THAT THE AIRCRAFT'S WINGS BE ABLE TO WITHSTAND LOAD STRESS AMOUNTING TO 150 OF THE MAXIMUM THAT OCCURS IN NORMAL OPERATIONS IN OCTOBER'S TEST THE WINGS FAILED AT ABOUT 128 ACCORDING TO A REPORT BY THE GENERAL ACCOUNTING OFFICE IN THE NEW ROUND OF TESTS THAT BEGAN LAST MONTH THE WINGS WERE STRESSED TO ABOUT THE POINT AT WHICH THE WINGS BUCKLED LAST YEAR IT WAS PRUDENT TO REACH ABOUT 125 AND THEN ANALYZE THE RESULTS THE AIR FORCE ENGINEER SAID A REPEAT OF THE FULL CONTRACTUAL LOAD TEST IS SCHEDULED FOR NEXT MONTH JEFF COLE IN LOS ANGELES CONTRIBUTED TO THIS ARTICLE 9308180051 930818 FORD MOUNTS CHALLENGE TO GM IN TRUCK SALES GOAL IS TO BE NO 1 BY '95 AUTO MAKER ALSO WARNS JAPANESE OVER PRICES BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DEARBORN MICH FORD MOTOR CO IS GUNNING TO PASS RIVAL GENERAL MOTORS CORP IN US TRUCK SALES BY 1995 SETTING UP A PITCHED BATTLE FOR DOMINANCE IN THE HIGHPROFIT PICKUP MINIVAN AND SPORT UTILITY MARKETS MEANWHILE SENIOR FORD EXECUTIVES FIRED A WARNING SHOT AT JAPANESE RIVALS BY SUGGESTING THAT DETROIT COULD SEEK ANTIDUMPING ACTIONS IF JAPANESE AUTO MAKERS TRY TO RESTRAIN PRICE INCREASES DESPITE THE SURGING VALUE OF THE YEN IF THEY DON'T TAKE PRICES UP THEY'RE BACK IN THE DILEMMA OF DUMPING EDWARD E HAGENLOCKER EXECUTIVE VICE PRESIDENT OF FORD'S NORTH AMERICAN OPERATIONS SAID IN AN INTERVIEW AFTER A GROUNDBREAKING CEREMONY FOR A NEW ENGINETESTING LABORATORY IN A SEPARATE INTERVIEW ALEXANDER J TROTMAN PRESIDENT OF FORD'S WORLDWIDE AUTO OPERATIONS MADE SIMILAR COMMENTS WITH THE CONSTRUCTION SITE AS A BACKDROP MR HAGENLOCKER POINTED TO FORD'S RECENT STRING OF FACTORY AND SUPPORT FACILITY EXPANSIONS AND THEN ALL BUT DECLARED A MAJOR GOAL OF THE INVESTMENT CAMPAIGN IS TO UNSEAT GM AS THE NO 1 PLAYER IN THE LUCRATIVE US TRUCK MARKET IN 1992 WE SOLD 90 OF GM'S TRUCK VOLUME IN 1993 WE'LL SELL 95 OF GM'S TRUCK VOLUME HE SAID IN 1994 WE'LL COME BACK AND TALK ABOUT IT THEN MR HAGENLOCKER THEN NOTED THAT BY EARLY 1995 FORD WILL HAVE ADDED CAPACITY TO BUILD SOME 300000 ADDITIONAL MINIVANS EXPLORER SPORT UTILITY VEHICLES AND OTHER TRUCKS ANNUALLY SALES OF MINIVANS SPORT UTILITY VEHICLES AND PICKUPS HAVE GROWN FASTER THAN SALES OF PASSENGER CARS FOR SEVERAL YEARS AND WITH JAPANESE MANUFACTURERS HOBBLED IN MOST TRUCK SEGMENTS BY HIGH TARIFFS OR UNCOMPETITIVE PRODUCTS DETROIT'S BIG THREE ALL EARN FAR MORE ON EACH TRUCK SOLD THAN ON PASSENGER CARS THAT'S WHY FORD CHRYSLER CORP AND GM ALL ARE SHIFTING MORE CAPITAL AND CAPACITY INTO TRUCK PRODUCTION OVER THE NEXT SEVERAL YEARS BUT FORD ALSO WANTS TO REARRANGE THE DECADESOLD BALANCE OF POWER IN THE TRUCK MARKET WHERE GM'S TWO BIG TRUCK MARKETING ARMS CHEVROLET AND GMC TRUCK ROUTINELY COMBINED TO OUTSELL FORD IN 1992 GM TRUCKS OUTSOLD FORD BY 138853 TRUCKS BUT RECENTLY FORD HAS OUTSOLD GM IN TOTAL TRUCKS FOR BRIEF PERIODS INCLUDING IN EARLY AUGUST WHEN TOTAL FORD TRUCK SALES WERE 37436 VEHICLES TO GM'S 36029 THE REVERSAL LARGELY REFLECTS GM'S WEAK MINIVAN AND SPORT UTILITY PRODUCTS BUT MR HAGENLOCKER INDICATED HE WANTS MORE GM OFFICIALS HAVE SAID IN RECENT INTERVIEWS THAT TO FEND OFF CHALLENGES FROM FORD AND CHRYSLER THE NO 1 AUTO MAKER WILL BOOST CAPITAL SPENDING ON NEW TRUCK PRODUCTS TO 12 BILLION ANNUALLY DURING THE NEXT FIVE YEARS MORE THAN DOUBLE THE ANNUAL LEVEL IN THE PREVIOUS FIVE YEARS PROFIT FROM TRUCK SALES IS CRITICAL TO GM'S EFFORT TO PUT ITS NORTH AMERICAN VEHICLE OPERATIONS IN THE BLACK SINCE PRESIDENT JOHN F SMITH JR TOOK OVER AS CHIEF EXECUTIVE OFFICER IN NOVEMBER 1992 GM HAS TRIED TO SPEED DEVELOPMENT OF NEW TRUCK MODELS INCLUDING A REDESIGNED COMPACT SPORT UTILITY VEHICLE TO COMPETE AGAINST FORD'S POPULAR EXPLORER AND A LARGER FOURDOOR FOURWHEEL DRIVE VEHICLE DERIVED FROM GM'S YUKON MODEL BUT ONE OF THE WEAKEST LINKS IN GM'S TRUCK LINEUP THE APV MINIVANS MAY NOT GET REDESIGNED UNTIL 1996 FORD MEANWHILE PLANS TO LAUNCH A FRONTDRIVE MINIVAN CALLED THE WINDSTAR NEXT YEAR TO COMPETE AGAINST CHRYSLER'S MARKETLEADING MINIVANS AND THE APVS CHRYSLER COULD TAKE SHARE IN THE LARGE PICKUP MARKET FROM BOTH GM AND FORD WITH ITS NEW RAM PICKUP DUE OUT THIS FALL SEPARATELY FORD PLANS TO MAKE ITS FIRST SERIOUS CONTRACT OFFER TO THE UAW ON AUG 25 IN ITS BID TO BE CHOSEN AS THE UNION'S CONTRACT TARGET FOR THIS YEAR'S AUTO INDUSTRY LABOR TALKS UNION AND COMPANY OFFICIALS SAID THE UAW HAS SAID IT WILL ANNOUNCE ITS CONTRACT TARGET AUG 30 EACH OF THE BIG THREE AUTO MAKERS IS EXPECTED TO MAKE A PROPOSAL TO BECOME THE TARGET SO IT CAN SHAPE THE INDUSTRY'S PATTERN CONTRACT TO ITS OWN NEEDS FORD MADE A GOODWILL GESTURE TO THE UAW BY ANNOUNCING IT WILL BUILD A CRANKSHAFT FORGING PLANT IN WOODHAVEN MICH ONLY THE THIRD NEW FORD MANUFACTURING PLANT IN THE US SINCE 1980 THE 60000 SQUAREFOOT PLANT WILL COST 44 MILLION AND EMPLOY 50 HOURLY AND 10 SALARIED EMPLOYEES IT'S SCHEDULED TO OPEN IN EARLY 1995 AND WILL HAVE THE CAPACITY TO PRODUCE 700000 STEEL CRANKSHAFTS A YEAR FOR USE IN FORD'S COMING 54LITER TRUCK ENGINE NEAL TEMPLIN CONTRIBUTED TO THIS ARTICLE 9308180050 930818 BUSINESS BRIEF BOMBARDIER INC COMPANY RECEIVES ORDERS FROM SKYWEST FOR 10 JETS BOMBARDIER INC SAID IT RECEIVED ABOUT 170 MILLION OF ORDERS FROM SKYWEST AIRLINES INC FOR 10 OF ITS CANADAIR REGIONAL JET AIRCRAFT SKYWEST BASED IN ST GEORGE UTAH OPERATES A FLEET OF 50 TURBOPROP AIRCRAFT FROM HUBS IN SALT LAKE CITY AND LOS ANGELES DELIVERIES OF THE REGIONAL JETS ARE TO BEGIN IN JANUARY SKYWEST WHICH CLOSELY COORDINATES ITS FLIGHTS WITH DELTA AIR LINES IS TAKING OPTIONS FOR AN ADDITIONAL 10 OF BOMBARDIER'S 50SEAT JETS THE AGREEMENT FOLLOWS AN ANNOUNCEMENT LATE MONDAY THAT AIR CANADA MONTREAL INTENDS TO ACQUIRE 24 REGIONAL JETS THROUGH LEASING ARRANGEMENTS BEGINNING NEXT MAY THE TWO TRANSACTIONS MARK A BREAKTHROUGH FOR BOMBARDIER WHICH INVESTED HEAVILY IN DEVELOPMENT OF THE REGIONAL JET THE MONTREAL PRODUCER OF TRANSPORTATION EQUIPMENT HAS SHIPPED 16 OF THE AIRCRAFT TO CUSTOMERS IN GERMANY AND THE US SINCE DELIVERIES BEGAN IN OCTOBER BUT IT HADN'T WON ANY NEW ORDERS SINCE LATE 1991 9308180049 930818 COMMODITIES COFFEE TRADERS SHRUG OFF EXPORTCUT WARNING MADE BY AFRICAN AND CENTRAL AMERICAN CARTEL BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL COFFEE PRODUCERS IN AFRICA AND CENTRAL AMERICA FORMED A CARTEL AND SAID THEY WOULD CUT COFFEE EXPORTS BEGINNING OCT 1 IN AN EFFORT TO BOOST PRICES YET US COFFEE TRADERS SHRUGGED OFF THE NEWS LARGELY BECAUSE PRICES ALREADY HAVE RISEN SUBSTANTIALLY IN ANTICIPATION OF SUCH AN AGREEMENT THE FUTURES MARKET HAS BEEN ANTICIPATING THIS FOR SEVERAL WEEKS SAID SAUNDRA KAUL COFFEE ANALYST FOR SMITH BARNEY SHEARSON THESE NATIONS DIDN'T ALL OF A SUDDEN DECIDE TO CHANGE THEIR POLICY SO THE PRICE RESPONSE YESTERDAY WAS FAIRLY MUTED AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE THE PRICE OF THE ACTIVELY TRADED DECEMBER COFFEE FUTURES CONTRACT FELL 035 CENT TO 74 CENTS A POUND THE PRICE DECLINED MAINLY BECAUSE OF SELLING PRESSURE IN ANTICIPATION OF NEXT WEEK'S NOTICE PERIOD FOR THE EXPIRING SEPTEMBER FUTURES CONTRACT DURING WHICH TRADERS ANNOUNCE THEIR INTENTION TO TAKE DELIVERY OF COFFEE ON OUTSTANDING CONTRACTS YET MOST OF THE TALK IN COFFEE MARKETS YESTERDAY WAS ABOUT THE AGREEMENT BETWEEN THE INTERAFRICAN COFFEE ORGANIZATION AND THE LESS FORMAL ORGANIZATION THAT REPRESENTS COFFEEPRODUCING NATIONS IN LATIN AMERICA THESE TWO ORGANIZATIONS WHICH REPRESENT ABOUT TWO DOZEN OF THE WORLD'S BIGGEST COFFEEPRODUCING COUNTRIES SAID THEY AGREED TO WITHHOLD 20 OF THEIR PLANNED COFFEE EXPORTS IF PRICES ARE BELOW CERTAIN PRESPECIFIED LEVELS THEIR INTENTION IS TO BOLSTER COFFEE PRICES WHICH SANK AS LOW AS 50 CENTS A POUND IN SPRING AND INCREASE THE REVENUES FROM COFFEE EXPORTS LARGELY BECAUSE OF EXPECTATIONS THAT THE COFFEE PRODUCERS WOULD LIMIT COFFEE EXPORTS THE PRICE OF THE DECEMBER FUTURES CONTRACT HAS RALLIED ABOUT 48 SINCE SPRING TO YESTERDAY'S SETTLING PRICE OF 74 CENTS A POUND THE FAILURE OF THE MARKET TO REACT TO FINALIZATION OF THE PLAN YESTERDAY WAS A CLASSIC CASE OF THE MARKET BUYING THE RUMOR AND SELLING THE NEWS SAID AN ANALYST AT MERRILL LYNCH IN LATE SEPTEMBER THE AFRICAN COFFEE PRODUCERS ARE EXPECTED TO ANNOUNCE PRICE LEVELS AT WHICH THEY WILL WITHHOLD EXPORTS THE LATIN AMERICAN COUNTRIES HAVE ALREADY SAID THEY WOULD HOLD BACK 20 OF EXPORTS IF THE 15DAY AVERAGE OF WORLD COFFEE PRICES IS BELOW 75 CENTS A POUND OTHER PROVISIONS OF THE LATIN AMERICAN PLAN CALL FOR THE NATIONS TO RESTRICT 10 OF EXPORTS IF PRICES ARE BETWEEN 75 AND 80 CENTS A POUND RESTRICT NO EXPORTS IF PRICES ARE BETWEEN 80 AND 85 CENTS A POUND AND EXPORT WHAT THEY HAD PREVIOUSLY RETAINED IF PRICES ARE ABOVE 85 CENTS A POUND IN OTHER COMMODITY MARKETS YESTERDAY GRAINS & SOYBEANS PRICES OF SPRING WHEAT FUTURES CONTRACTS JUMPED FOR THE SECOND CONSECUTIVE TRADING SESSION AS ANALYSTS RAISED THEIR ESTIMATES OF THE SCOPE OF A VOMITOXIN OUTBREAK THE POISON IS PRODUCED BY A FUNGUS THAT IS FLOURISHING AMID UNUSUALLY COOL AND WET WEATHER IN MINNESOTA SOUTH DAKOTA AND NORTH DAKOTA SOME ANALYSTS ARE SPECULATING THAT BETWEEN 200 MILLION BUSHELS AND 400 MILLION BUSHELS OF THE SPRING WHEAT AND DURUM CROPS THERE MIGHT BE UNFIT FOR HUMAN CONSUMPTION THAT IS UP FROM EARLIER ESTIMATES THAT ROUGHLY 15 OF THE PROJECTED 650 MILLION BUSHEL SPRING WHEAT HARVEST MIGHT BE AFFLICTED IN TRADING AT THE MINNEAPOLIS GRAIN EXCHANGE THE WHEAT CONTRACT FOR SEPTEMBER DELIVERY ROSE 1225 CENTS A BUSHEL TO SETTLE AT 334 A BUSHEL THE OUTBREAK ALSO IS LIFTING THE PRICES OF WHEAT FUTURES CONTRACTS TRADED AT EXCHANGES IN CHICAGO AND KANSAS CITY BEFORE THE OUTBREAK GRAIN INDUSTRY OFFICIALS HAD EXPECTED A LARGE SPRING WHEAT CROP IN THE NORTHERN PLAINS TO COMPENSATE FOR RAIN DAMAGE TO THE HARD RED WINTER VARIETY IN SOME SOUTHERN PLAINS STATES AS REPORTED EARLIER THE US FOOD AND DRUG ADMINISTRATION IS SAMPLING THE RECENTLYBEGUN SPRING WHEAT HARVEST TO DETERMINE THE SCOPE AND INTENSITY OF THE OUTBREAK PRICES OF CORN AND SOYBEAN FUTURES CONTRACTS TRADED AT THE CHICAGO BOARD OF TRADE ROSE IN THE WAKE OF REPORTS LATE MONDAY SHOWING THAT THE CONDITION OF THE MIDWEST CROPS DIDN'T IMPROVE SIGNIFICANTLY DESPITE A RESPITE LAST WEEK FROM RECORD WET WEATHER BILL BIEDERMANN VICE PRESIDENT OF RESEARCH AT ALLENDALE INC CRYSTAL LAKE ILL IS ESTIMATING THAT IOWA AND MINNESOTA FIELDS CAPABLE OF PRODUCING 390 MILLION BUSHELS OF CORN ARE GROWING SO SLOWLY THAT THEY PROBABLY WON'T MATURE BEFORE FROST ENDS THE GROWING SEASON CORN PRICES WERE ALSO SUPPORTED BY REPORTS THAT THE AGRICULTURE DEPARTMENT AUTHORIZED RUSSIA TO BEGIN USING A FOOD AID PACKAGE TO ACQUIRE US CORN SUGAR THE CONTROVERSY OVER WHETHER SOCALLED BRAZILIAN CRYSTALLINE SUGAR IS DELIVERABLE AGAINST FUTURES CONTRACTS CONTINUED TO DOMINATE FUTURES TRADING THE COFFEE SUGAR & COCOA EXCHANGE IS NOW HEARING AN ARBITRATION CASE BETWEEN TWO SUGAR TRADE HOUSES IN WHICH THE EXCHANGE IS EXPECTED TO MAKE A LONGAWAITED RULING ON WHETHER THE BRAZILIAN SUGAR IS DELIVERABLE AGAINST ITS CONTRACTS THE RULING IS EXPECTED SOMETIME THIS WEEK PERHAPS AS SOON AS TODAY IF THE BRAZILIAN SUGAR IS ALLOWED TO BE DELIVERED AGAINST FUTURES CONTRACTS IT LIKELY WOULD EXERT DOWNWARD PRESSURE ON FUTURES PRICES AT THE EXCHANGE YESTERDAY SUGAR FOR OCTOBER DELIVERY WAS UP 019 CENT TO 939 CENTS A POUND 9308180048 930818 TECHNOLOGY SWITCH GEAR UNVEILED BY NORTHERN TELECOM TORONTO NORTHERN TELECOM LTD INTRODUCED SWITCHING EQUIPMENT AIMED AT HIGHCAPACITY HIGHSPEED MULTIMEDIA NETWORKS NORTHERN TELECOM LIKE AMERICAN AND JAPANESE COMPANIES IS PRESSING TO DEVELOP NEW SWITCHING TECHNOLOGY BASED ON ASYNCHRONOUS TRANSFER MODE OR ATM SUCH SWITCHES ARE FASTER THAN CURRENT SWITCHES INSTALLED AT DIGITAL EXCHANGES AND WOULD CARRY A TORRENT OF VOICE DATA AND VIDEO TRAFFIC NORTHERN TELECOM A UNIT OF BCE LTD SAID ITS NEWLY INTRODUCED MAGELLAN GATEWAY SWITCH DEVELOPED BY THE COMPANY AND GTE CORP CURRENTLY IS IN TRIAL STAGES WITH MAJOR CARRIERS AND WILL BE AVAILABLE ON A LIMITED BASIS BY YEAREND NORTHERN TELECOM HAD INTRODUCED ONE SUCH ATM SWITCH MAINLY FOR INTRABUSINESS TRAFFIC LAST MARCH AND PLANS TO INTRODUCE ANOTHER HIGHCAPACITY SWITCH THIS FALL BY THE END OF THE DECADE MARKET EXPERTS EXPECT ATMS TO FORM THE SWITCHING HUBS FOR SOCALLED BROADBAND NETWORKS THAT WOULD FOR EXAMPLE PERMIT CONSUMERS TO SEE AND SPEAK WITH EACH OTHER IN HIGHDEFINITION TELEVISION 9308180047 930818 MARKETING & MEDIA TELECOMMUNICATIONS SAYS IT WILL FAIL TO MEET DEADLINE ON TV STATIONS' FEES BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STANDING FIRM IN ITS REFUSAL TO PAY TELEVISION STATIONS PROGRAMMING FEES ALLOWED UNDER THE NEW CABLE LAW TELECOMMUNICATIONS INC SAID THAT IT WILL FAIL TO MEET THE LAW'S OCT 6 DEADLINE AND THAT THE STANDOFF COULD CONTINUE WELL INTO NEXT YEAR THE NATION'S LARGEST CABLE OPERATOR SAID THE CABLE ACT'S PROVISION KNOWN AS RETRANSMISSION CONSENT SET AN UNREALISTICALLY CLOSE DEADLINE EVEN AS IT REQUIRED SOME 18000 SEPARATE NEGOTIATIONS AT TELECOMMUNICATIONS ALONE OTHER MAJOR CABLE COMPANIES MAY ALSO END UP FAILING TO MEET THE DEADLINE YESTERDAY NO 2 OPERATOR TIME WARNER INC SAID IT WON'T BE ABLE TO FINISH NEGOTIATIONS IN TIME SEPARATELY A RAFT OF NEW AGREEMENTS BETWEEN BIG CABLE COMPANIES AND TV STATION GROUPS WAS ANNOUNCED YESTERDAY UNDER THE RETRANSMISSION RULES AMONG THEM GENERAL ELECTRIC CO'S NBC UNIT SIGNED A PACT WITH TIME WARNER CABLE SYSTEMS CALLING FOR THE SYSTEMS TO CARRY A NEW NBCOWNED CABLE CHANNEL AMERICA'S TALKING IN LIEU OF PAYING PROGRAMMING FEES TO NBC'S COMPANYOWNED TV STATIONS DELAYS IN MEETING THE OCTOBER DEADLINE HAVE BEEN CAUSED IN PART BY THE FACEOFF BETWEEN TV STATIONS DEMANDING NEW CASH FEES AND CABLE SYSTEMS STEADFASTLY REFUSING TO PAY NEARLY ALL OF THE NATION'S LARGEST CABLE OPERATORS HAVE VOWED TO FORGO PAYING CASH TO LOCAL TV STATIONS THAT STAND PROMPTED THE SCRUTINY OF US DEMOCRATIC SEN DANIEL INOUYE OF HAWAII WHO ASKED THE JUSTICE DEPARTMENT AND THE FEDERAL TRADE COMMISSION TO LOOK INTO WHETHER THE CABLE COMPANIES HAVE IMPROPERLY COLLUDED IN DEALING WITH BROADCASTERS THE FAILED DEADLINE MEANS MANY TV STATIONS WILL BE FACED WITH A DIFFICULT CHOICE THEY CAN AGREE TO A TEMPORARY EXTENSION OF THE NEGOTIATING PERIOD WITH TELECOMMUNICATIONS AND OTHER CABLE OPERATORS OR PULL THEIR PROGRAMMING OFF CABLE UNTIL A DEAL IS REACHED BUT TAKING THE LATTER COURSE WOULD DAMAGE LOCAL TV STATIONS BY SHRINKING THEIR AUDIENCE JUST AS THEY MOVE INTO THE CRITICAL NOVEMBER SWEEPS RATINGS PERIOD ROBERT THOMSON A SENIOR VICE PRESIDENT AT TELECOMMUNICATIONS SAID THE COMPANY WILL SEEK EXTENSIONS FROM THE TV STATIONS AS IT CONTINUES TRYING TO SIGN THEM TO DEALS THAT DON'T CALL FOR OUTRIGHT CASH PAYMENTS THE CABLE COMPANY IS NEGOTIATING WINWIN NONCASH DEALS THAT IN SOME CASES GIVE A LOCAL STATION A NEW CABLE CHANNEL FOR LOCAL NEWS AMONG OTHER APPROACHES MR THOMSON SAID IN DALLAS FOR EXAMPLE THE CABLE GIANT WON THE RIGHT TO CARRY LOCAL CBS AFFILIATE KDFW WITHOUT PAYING CASH IN EXCHANGE FOR SETTING ASIDE A SLOT FOR THE STATION TO PROGRAM ITS OWN SEPARATE CABLE CHANNEL WHILE TELECOMMUNICATIONS OWNS THE NEW OUTLET THE CBS STATION WOULD SELL LOCAL ADS AND KEEP THE REVENUE PREVIOUSLY TELECOMMUNICATIONS ALSO AGREED TO CARRY A NEW CABLE CHANNEL OWNED BY NEWS CORP'S FOX UNIT AND TO PAY 25 CENTS PER HOUSEHOLD FOR THE NEW SERVICE IN EXCHANGE THE CABLE OPERATOR GETS TO CARRY FOX TV STATIONS FREE OF CHARGE FOX IN TURN PASSES ON ABOUT 75 CENTS PER HOUSEHOLD TO OTHER FOX AFFILIATESWHICH THE STATIONS SAY AMOUNTS TO THE VERY CASH PAYMENTS THAT TELECOMMUNICATIONS HAS INSISTED IT WON'T PAY BUT TELECOMMUNICATIONS'S MR THOMSON SAID CABLE SHOULDN'T HAVE TO PAY TV STATIONS FOR PROGRAMMING THAT THEY OTHERWISE DELIVER OVER THE AIR FREE OF CHARGE IT ISN'T A MATTER OF POSSIBLE ANTITRUST BEHAVIOR AS SEN INOUYE HAS TACITLY SUGGESTED MR THOMSON SAID RATHER IT'S SIMPLY GOOD BUSINESS AS THE BIGGEST CABLE OPERATORS HAVE REFUSED TO NEGOTIATE CASH DEALS SOME OF THE BIGGEST BROADCAST GROUPS HAVE GIVEN UP CASH DEMANDS IN FAVOR OF A NEW FOOTHOLD INTO THE CABLE WORLD NBC WHICH ALREADY OWNS THE CNBC CABLE CHANNEL YESTERDAY SIGNED ITS FIRST MAJOR RETRANSMISSION PACT A SEVENYEAR AGREEMENT WITH TIME WARNER CABLE IT LETS TIME WARNER CABLE SYSTEMS CARRY THE PROGRAMMING OF NBCOWNED STATIONS WITHOUT PAYING FOR IT IN EXCHANGE FOR RENEWING CNBC CARRIAGE AND NATIONALLY ROLLING OUT NBC'S NEW TALKSHOW CHANNEL AMERICA'S TALKING FOR THAT SERVICE TIME WARNER WILL PAY CASH ALTHOUGH EXACT FEES COULDN'T BE DETERMINED LATE YESTERDAY NBC ALSO ARRANGED FOR SOME LOCAL AFFILIATES TO TAKE PART IN THE DEAL IF THEY CHOOSE PROVIDING LOCAL PROGRAM INSERTS FOR THE NEW CHANNEL TO THEIR CABLE SYSTEMS THAT WOULD LET NBC AFFILIATES BARGAIN WITH CABLE EXECUTIVES OVER THE RIGHT TO RECEIVE MONEY FROM SELLING LOCAL ADS ON THE NEW NBC CABLE CHANNEL SAID THOMAS S ROGERS PRESIDENT OF NBC CABLE ALSO YESTERDAY CAPITAL CITIES/ABC INC AND HEARST CORP ITS PARTNER IN ESPN2 SIGNED UP SIX MORE CABLE OPERATORS INCLUDING SIMMONS COMMUNICATIONS INC ADELPHIA COMMUNICATIONS INC AND COLONY COMMUNICATIONS INC THEY AGREED TO LAUNCH THE NEW SPORTS CHANNEL ON THEIR SYSTEMS AND TO PAY FOR IT IN EXCHANGE FOR CARRYING ABCOWNED AND HEARSTOWNED STATIONS FREE OF CHARGE 9308180046 930818 MARKETING & MEDIA CONDE NAST'S UDELL IS NAMED TO DIRECT PUSH INTO MULTIMEDIA NEW YORK CONDE NAST PUBLICATIONS INC NAMED ROCHELLE UDELL VICE PRESIDENT CREATIVE MARKETING/NEW MEDIA TO DIRECT THE COMPANY'S PUSH INTO NEW MULTIMEDIA PRODUCTS IN THE NEWLY CREATED POSITION MS UDELL 47 YEARS OLD WILL WORK ON DEVELOPING NEW METHODS TO DELIVER CONDE NAST'S HIGHEND MAGAZINES SUCH AS VOGUE GLAMOUR GQ VANITY FAIR AND SELF THE PUBLISHING GROUP'S MOVE FOLLOWS AN INCREASING NUMBER OF PUBLISHERS WHO HAVE BEGUN EXPLORING ALTERNATIVE MEANS OF DELIVERING THEIR PRODUCTS THE COMPANY SAID MS UDELL FORMERLY VICE PRESIDENT OF CREATIVE MARKETING AT CONDE NAST WILL EXPLORE SEVERAL DELIVERY METHODS INCLUDING ONLINE SERVICES A COMBINATION OF TEXT AND VIDEO ON CABLE MULTIMEDIA CDROM INTERACTIVE TELEVISION AND ANY FUTURE PUBLISHING DEVELOPMENTS SHE WILL ALSO BECOME THE FOURTH MEMBER OF AN INFORMAL NEW MEDIA COMMITTEE AT CONDE NAST'S PARENT COMPANY ADVANCE PUBLICATIONS INC ADVANCE WHICH PUBLISHES THE NEW YORKER AND OWNS BOOK PUBLISHER RANDOM HOUSE INC IS CONTROLLED BY THE NEWHOUSE FAMILY 9308180045 930818 MARKETING P&G'S CALCIUM PITCH TO TEENS SPARKS CRITICISM BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PROCTER & GAMBLE CO HOPING TO ENDOW ITS CALCIUMENRICHED BEVERAGES WITH THE IMPRIMATUR OF SCIENTIFIC RESEARCH IS RUSHING TO EMBRACE A NEW STUDY THAT SAYS CALCIUM SUPPLEMENTS TAKEN BY ADOLESCENT GIRLS LEAD TO STRONGER BONES NUTRITIONISTS HOWEVER ARE CONCERNED THAT P&G'S USE OF THE STUDY TO SELL ITS SUNNY DELIGHT PLUS CALCIUM DRINK AND A NEW VERSION OF HAWAIIAN PUNCH WILL ENCOURAGE TEENAGERS TO CONSUME SUGARY BEVERAGES THAT HAVE SCANT NUTRITIONAL VALUE BEYOND CALCIUM AND SOME VITAMINS THEY'RE PUSHING A DRINK WHICH IS MAINLY SUGARWATER KIDS WHO FEEL THAT DRINKING A GALLON OF HAWAIIAN PUNCH WILL HELP THEM GROW ARE BEING MISLED SAYS WAHIDA KARMALLY A REGISTERED DIETITIAN AT COLUMBIA PRESBYTERIAN MEDICAL CENTER IN NEW YORK AND A SPOKESWOMAN FOR THE AMERICAN DIETETIC ASSOCIATION THE STUDY TO BE PUBLISHED IN TODAY'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION CONCLUDES THAT GIRLS 12 TO 14 YEARS OLD WHO TAKE 110 OF THEIR RECOMMENDED DAILY ALLOWANCE OF CALCIUM MAY SEE SIGNIFICANT INCREASES IN BONE DENSITY RESEARCHERS BELIEVE OBTAINING OPTIMAL BONE MASS BY THE END OF ADOLESCENCE WILL HELP PREVENT OSTEOPOROSIS LATER IN LIFE THE GIRLS IN THE STUDY WHO AVERAGED 960 MILLIGRAMS OF CALCIUM IN THEIR NORMAL DIET ON AVERAGE CONSUMED A 354MILLIGRAM SUPPLEMENT THE 18MONTH STUDY SHOWED THE GIRLS HAD SIGNIFICANT GAINS IN TOTAL BODY AND SPINAL BONE DENSITY CONDUCTED BY SCIENTISTS AT PENNSYLVANIA STATE UNIVERSITY AND A P&G RESEARCHER THE STUDY WAS PARTLY FUNDED BY P&G WHICH PROVIDED WHAT IT CALLS A SMALL GRANT A PENN STATE SCIENTIST SAYS MORE THAN 90 OF THE FUNDING CAME FROM THE NATIONAL INSTITUTES OF HEALTH THE COMPANY ALSO SUPPLIED THE CALCIUM SUPPLEMENT GIVEN TO THE GIRLS IN THE STUDY CALCIUM CITRATE MALATE WHICH HAS BEEN PATENTED BY P&G UNDER THE NAME FRUITCAL IT IS AN INGREDIENT IN SUNNY DELIGHT PLUS CALCIUM WHICH WAS INTRODUCED LAST OCTOBER AND A NEW CALCIUMENRICHED VARIETY OF HAWAIIAN PUNCH RESEARCHERS SAY IT ISN'T KNOWN WHETHER OTHER CALCIUM SUPPLEMENTS ACHIEVE THE SAME RESULTS AS FRUITCAL WHICH THEY SAY IS MORE EASILY ABSORBED BY THE BODY THAN THE OTHER MAJOR CALCIUM SUPPLEMENT CALCIUM CARBONATE SEEKING TO CAPITALIZE ON THE STUDY'S PUBLICATION P&G LATE YESTERDAY LAUNCHED DOUBLE C HAWAIIAN PUNCH THE TWO CS ARE FOR CALCIUM AND VITAMIN C THE COMPANY'S MARKETING PLANS INCLUDE PRINT AND TV ADS SOME OF WHICH MENTION THE STUDY THE COMPANY WON'T DISCLOSE ITS MARKETING BUDGET THIS ISN'T THE FIRST TIME THE CINCINNATI CONSUMERPRODUCTS GIANT HAS TRIED TO MESH SCIENCE AND MARKETING LAST YEAR AS IT PROMOTED CITRUS HILL PLUS CALCIUM ORANGE JUICE WHICH HAS SINCE BEEN DISCONTINUED P&G TOUTED AN INDIANA UNIVERSITY STUDY SHOWING THAT EXTRA CALCIUM WILL STRENGTHEN YOUNG CHILDREN'S BONES THAT STUDY WAS PARTIALLY FUNDED BY P&G AND PUBLISHED IN THE NEW ENGLAND JOURNAL OF MEDICINE AN EARLIER STUDY PARTLY FUNDED BY P&G AND PUBLISHED IN THE NEW ENGLAND JOURNAL OF MEDICINE IN 1990 SHOWED THAT FRUITCAL WAS AN EFFECTIVE CALCIUM SUPPLEMENT FOR POSTMENOPAUSAL WOMEN ACCORDING TO THE FOOD AND DRUG ADMINISTRATION COMPANIES INCREASINGLY ARE SEEKING SCIENTIFIC BACKING FOR NUTRITIONAL CLAIMS MADE ON PRODUCT LABELS MANY ARE LATCHING ONTO RESEARCH STUDIES OFTEN BY FUNDING THEM OR PARTICIPATING IN THEM LABELING CLAIMS ARE MONITORED BY THE FDA WHICH REQUIRES COMPANIES TO SHOW SIGNIFICANT SCIENTIFIC AGREEMENT THAT THE CLAIM IS VALID SAYS A SPOKESMAN FOR THE FEDERAL AGENCY THE FDA SAYS P&G'S CLAIMS BASED ON THE NEW STUDY APPEAR TO COMPLY WITH ITS LABELING GUIDELINES FOR CALCIUMENRICHED PRODUCTS WHILE DIETITIANS AND NUTRITIONISTS ARE INTERESTED IN THE STUDY'S SUPPORT FOR INCREASING CALCIUM IN THE DIET THEY WOULD PREFER THAT TEENAGERS GET ADDITIONAL CALCIUM FROM PROTEINRICH DAIRY FOODS SUCH AS SKIM MILK INDEED THERE IS VERY LITTLE FRUIT JUICE IN THE P&G BEVERAGES 10 FOR HAWAIIAN PUNCH PLUS CALCIUM AND 5 FOR SUNNY DELIGHT PLUS CALCIUM WHICH ALSO CONTAINS VITAMINS A B1 AND C P&G COUNTERS THAT AS LONG AS TEENAGERS CONSUME LARGE QUANTITIES OF JUICE DRINKS THOSE PRODUCTS MIGHT AS WELL BE FORTIFIED WITH CALCIUM OUR APPROACH HAS BEEN TO TRY AND INCREASE THE NUMBER OF CALCIUMRICH FOOD OPTIONS THAT PARENTS AND KIDS HAVE A P&G SPOKESWOMAN SAYS NO ONE'S SUGGESTING KIDS SHOULD STOP DRINKING MILK OR EATING CHEESE MARKETING CONSULTANTS BELIEVE IT WILL BE DIFFICULT FOR P&G TO PERSUADE TEENAGE GIRLS TO WORRY ABOUT CALCIUM INTAKE AND TO DRINK HAWAIIAN PUNCH WHICH TENDS TO APPEAL TO YOUNGER CHILDREN HAWAIIAN PUNCH ADS TYPICALLY FEATURE PUNCHY A PUGNACIOUS CARTOON CHARACTER HOWEVER CONSULTANTS BELIEVE THE COMPANY MAY HAVE SOME SUCCESS APPEALING TO PARENTS BECAUSE OF THE VITAMIN C AND CALCIUM IN DOUBLE C HAWAIIAN PUNCH P&G SAYS DOUBLE C HAWAIIAN PUNCH ADS CITING THE STUDY WILL BE TALKING TO PARENTS WHO ARE STILL THE PRIMARY PURCHASERS OF THESE PRODUCTS AND ARE MOST MINDFUL OF THEIR KIDS' DIETS THE COMPANY AGREES HAWAIIAN PUNCH TENDS TO APPEAL TO YOUNGER CHILDREN WHILE SUNNY DELIGHT IS MORE POPULAR WITH TEENS THOUGH THERE'S SOME CROSSOVER THOUGH THE NEW STUDY FOCUSES ON ADOLESCENTS P&G BELIEVES IT WILL NONETHELESS BOOST SALES OF DOUBLE C HAWAIIAN PUNCH BY RAISING THE AWARENESS OF PARENTS THAT KIDS CAN BENEFIT FROM GETTING MORE CALCIUM IN THEIR DIET SAYS THE SPOKESWOMAN 9308180043 930818 YIELDS ON CDS EASED DURING LATEST WEEK NEW YORK YIELDS ON MOST BANK CERTIFICATES OF DEPOSIT SLIPPED FRACTIONALLY IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS AT MAJOR BANKS FOR INSTANCE EASED TO 273 FROM 274 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS SLIPPED TO 475 FROM 476 THE AVERAGE YIELD ON SIXMONTH CDS SOLD BY MAJOR BROKERAGE FIRMS SLID TO 305 FROM 307 ACCORDING TO THE BANXQUOTE SURVEY THE AVERAGE YIELD ON FIVEYEAR BROKERSOLD CDS FELL TO 465 FROM 470 ON LARGEDENOMINATION JUMBO CDS AT MAJOR BANKS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND UP THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE SLIPPED TO 279 FROM 281 ON FIVEYEAR JUMBOS THE AVERAGE YIELD EASED TO 477 FROM 481 BANXQUOTE SAID 9308180042 930818 WHO'S NEWS GENERAL TIRE OFFICIALS RESIGN AFTER DISPUTE WITH CHIEF EXECUTIVE AKRON OHIO GENERAL TIRE INC SAID TWO TOP EXECUTIVES RESIGNED OVER POLICY DIFFERENCES WITH CHIEF EXECUTIVE OFFICER ALAN OCKENE EW BUD KISSEL EXECUTIVE VICE PRESIDENT OF THE COMPANY'S PASSENGER AND LIGHT TRUCK DIVISION AND ALEXANDER J MACLEAN SENIOR VICE PRESIDENT OF SALES AND MARKETING BOTH RESIGNED EFFECTIVE YESTERDAY NEITHER COULD BE REACHED FOR COMMENT A GENERAL SPOKESMAN DECLINED TO ELABORATE ON A STATEMENT BY MR OCKENE CITING POLICY DIFFERENCES AS THE REASON FOR THE EXECUTIVES' DEPARTURE MR OCKENE WILL ASSUME THE RESPONSIBILITIES OF BOTH EXECUTIVES ON AN INTERIM BASIS ANALYSTS SAID THE DISPUTE MAY HAVE INVOLVED WHETHER GENERAL SHOULD FOCUS ON PRIVATE LABEL OR BRANDED TIRES GENERAL HISTORICALLY SOLD MAINLY PRIVATELABEL TIRES BUT SHIFTED AFTER ITS 1987 ACQUISITION BY GERMANY'S CONTINENTAL AG OVER THE PAST YEAR GENERAL HAS MOVED BACK TOWARD A STRATEGY OF PURSUING THE PRIVATELABEL MARKET THE GENERAL SPOKESMAN WOULD ONLY SAY THERE PROBABLY WAS MORE THAN ONE ISSUE MR KISSEL 51 YEARS OLD HAD BEEN A LEADER IN GENERAL'S DEFENSE OF A PATENT LAWSUIT FILED BY GOODYEAR TIRE & RUBBER CO CHARGING A GENERAL SPECIAL WEATHER TIRE CALLED THE HYDRO 2000 COPIED ITS AQUATRED TIRE HE JOINED GENERAL IN 1990 AS EXECUTIVE VICE PRESIDENT MANUFACTURING AND HAD HEADED THE PASSENGER AND LIGHT TRUCK DIVISION SINCE APRIL 1992 MR MACLEAN 43 JOINED GENERAL IN JANUARY 1991 FROM CONTINENTAL 9308180041 930818 INTERNATIONAL BRIEF HUNTER DOUGLAS NV DUTCH CONCERN'S NET INCOME ROSE 16 FOR FIRST HALF DUTCH WINDOW COVERING AND ALUMINUM MAKER HUNTER DOUGLAS NV SAID COST REDUCTIONS HELPED BUOY PROFIT 16 IN THE FIRST SIX MONTHS OF THE YEAR MORE THAN COMPENSATING FOR A 11 SALES DECLINE BUT THE COMPANY'S RESULTS FELL SHORT OF ANALYSTS' EXPECTATIONS HUNTER DOUGLAS SAID NET INCOME ROSE TO 269 MILLION GUILDERS 142 MILLION OR 161 GUILDERS 85 CENTS A SHARE FOR THE FIRST HALF FROM 232 MILLION GUILDERS OR 137 GUILDERS A SHARE A YEAR EARLIER THE ROTTERDAMBASED COMPANY SAID THE HIGHER PROFIT REFLECTED IMPROVEMENTS IN THE US AND AUSTRALIAN BUSINESSES WHICH MORE THAN OFFSET LOWER RESULTS IN CONTINENTAL EUROPE MEANWHILE SALES EDGED 11 LOWER TO 8488 MILLION GUILDERS FROM 8582 MILLION GUILDERS LAST YEAR IN THE FIRST SIX MONTHS HUNTER DOUGLAS SAID THAT WHILE SALES VOLUME WAS UNCHANGED THERE WERE NEGATIVE EFFECTS BECAUSE OF CURRENCY EXCHANGE WHICH PUSHED CASH RECEIPTS DOWN BY 25 9308180040 930818 CREDIT RATINGS NEVADA POWER CO STANDARD & POOR'S CORP SAID IT UPGRADED ITS RATINGS FOR THIS LAS VEGAS UTILITY'S SENIOR SECURED DEBT TO TRIPLEB FROM TRIPLEBMINUS ITS SENIOR UNSECURED DEBT AND PREFERRED STOCK TO TRIPLEBMINUS FROM DOUBLEBPLUS AND ITS COMMERCIAL PAPER TO A2 FROM A3 THE DEBT AFFECTED TOTALS 720 MILLION AND THE OUTLOOK REMAINS POSITIVE THE RATING AGENCY SAID WOOLWORTH CORP NEW YORK STANDARD & POOR'S CORP REVISED ITS OUTLOOK ON WOOLWORTH'S RATINGS TO NEGATIVE FROM STABLE AND AFFIRMED THE COMPANY'S DEBT RATINGS ABOUT 400 MILLION IN DEBT WAS AFFECTED THE RATINGS AGENCY SAID IT WAS CONCERNED THAT THE RETAILER MAY BE UNABLE TO REGAIN ITS FORWARD EARNINGS MOMENTUM THAT HAS BEEN A BASIS FOR THE RATING S&P SAID THAT IF WOOLWORTH IS UNABLE TO RESTORE A MORE POSITIVE EARNINGS TREND THE COMPANY'S DEBT RATINGS COULD BE LOWERED S&P RATES WOOLWORTH'S SENIOR UNSECURED DEBT SINGLEA 9308180039 930818 BUSINESS BRIEF BANKAMERICA CORP JURY RULES IN BANK'S FAVOR IN 1986 INTERESTRATE SUIT A JURY RULED IN FAVOR OF BANKAMERICA CORP IN A SEVENYEAROLD CLASSACTION LAWSUIT ALLEGING THAT THE BANK HAD CONSPIRED WITH THREE OTHER CALIFORNIA BANKS TO KEEP CREDITCARD INTEREST RATES HIGH THE RULING STEMS FROM A 1986 SUIT FILED IN SAN FRANCISCO SUPERIOR COURT ON BEHALF OF FOUR MILLION CONSUMERS WHO HELD CREDIT CARDS ISSUED BY THE BANKS BETWEEN 1982 AND 1986 THE SUIT CHARGED THAT BANKAMERICA WELLS FARGO & CO CROCKER NATIONAL BANK AND FIRST INTERSTATE BANCORP AGREED TO CHARGE SIMILAR AND ARTIFICIALLY HIGH RATES AND THUS OVERCHARGED CARDHOLDERS BY 672 MILLION WELLS WHICH ACQUIRED CROCKER IN 1986 AND FIRST INTERSTATE AGREED LAST YEAR TO PAY A COMBINED 55 MILLION TO SETTLE THE CHARGES BANKAMERICA HELD OUT FOR A JURY TRIAL A RULING AGAINST IT WOULD HAVE EXPOSED THE BANK TO NEARLY FULL LIABILITY FOR A JUDGMENT THAT COULD HAVE REACHED 28 BILLION 9308180038 930818 INTERNATIONAL BRIEF SEDGWICK GROUP UK CONCERN LAUNCHES ISSUE TO ACQUIRE NOBLE LOWNDES UK INSURANCE BROKER SEDGWICK GROUP PLC LAUNCHED A RIGHTS ISSUE OF NEW SHARES TO RAISE 1437 MILLION 214 MILLION FOR THE ACQUISITION OF NOBLE LOWNDES & PARTNERS LTD PENSION AND EMPLOYEEBENEFITS CONSULTANTS FROM BRITISH COMMERCIAL BANK TSB GROUP PLC FOR 110 MILLION SEDGWICK SAID THE PROPOSED ACQUISITION WOULD CREATE ONE OF THE WORLD'S LARGEST EMPLOYEEBENEFITS CONSULTING CONCERNS THE COMPANY ALSO ANNOUNCED IT HAD AGREED TO BUY ARVID BERGVALL A MARINE INSURANCE BROKER FROM BORGIA AS OF NORWAY FOR 196 MILLION NORWEGIAN KRONER 267 MILLION THE NOBLE LOWNDES PURCHASE WILL BE FOR CASH WHILE ARVID BERGVALL WILL BE BOUGHT 90 WITH CASH AND THE REST IN SHARES TO PAY FOR THE TWO ACQUISITIONS SEDGWICK SAID IT WILL RAISE 1437 MILLION AFTER EXPENSES BY SELLING 907 MILLION NEW SHARES EXISTING SEDGWICK STOCKHOLDERS WILL BE GIVEN PREEMPTIVE RIGHTS TO BUY ONE NEW SHARE AT 165 PENCE 246 APIECE FOR EVERY FIVE ALREADY HELD 9308180037 930818 AT&TMCCAW DEAL IS AGGRESSIVE MOVE TO EXPAND VIA NEW CONSUMER SERVICES BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN TELEPHONE & TELEGRAPH CO'S PLANNED 126 BILLION PURCHASE OF MCCAW CELLULAR COMMUNICATIONS CO IS MEANT TO KICKSTART AT&T'S GROWTH AND BRING NEW SERVICES TO CONSUMERS ACCORDING TO AT&T'S NEW COMMUNICATIONS CHIEF ALEX MANDL ANALYSTS EXPECT AT&T TO OFFER PACKAGE DEALS FOR CONSUMERS THAT MIGHT COUPLE ATTRACTIVE LONGDISTANCE SERVICE PRICING WITH MCCAW'S CELLULAR SERVICE AND POSSIBLY EVEN OFFER A PRICE BREAK ON AT&T CELLULAR PHONES YOU'LL SEE MCCAW SERVICE PACKAGED WITH OTHER AT&T OFFERINGS SO CONSUMERS HAVE ONE POINT OF CONTACT SAID ROBERT B MORRIS III TELECOMMUNICATIONS ANALYST AT GOLDMAN SACHS & CO HE EXPECTS AT&T TO MARKET THE CELLULAR SERVICE AS PART OF ITS I PLAN MR MANDL WHO WAS CHIEF NEGOTIATOR ON THE MCCAW DEAL PREFERRED TO BE CIRCUMSPECT ABOUT SPECIFIC OFFERINGS FROM AT&T AND MCCAW SAYING I DON'T WANT TO TELEGRAPH OUR PUNCHES TO COMPETITORS IT'S A VERY COMPETITIVE WORLD BUT ONCE AT&T HAS MCCAW SOMETIME IN THE NEXT YEAR THE TELECOMMUNICATIONS GIANT WILL MARKET THE CELLULAR PHONE SERVICE WITH GUSTO IT'S A SERVICE THAT'S GOING TO BE A VERY IMPORTANT PART OF OUR BUSINESS AND WE'LL USE IT TO SATISFY CUSTOMERS IN A MORE COMPLETE WAY MR MANDL SAID MCCAW WHICH IS BUSILY CONVERTING ITS NETWORK TRANSMISSION SETUP TO DIGITAL SAID IT HAS ALREADY CUT PHONESERVICE PRICES BY 20 FOR CONSUMERS WHO USE ITS NEW DIGITAL SERVICE TO MAKE PHONE CALLS IN FLORIDA AND THE PACIFIC NORTHWEST SUCH PRICE BREAKS SHOULD CONTINUE AS THE DIGITAL NETWORK GROWS THROUGHOUT THE COUNTRY SAID CHAIRMAN CRAIG MCCAW WE'LL PACKAGE THE SERVICE IN THE MOST CONVENIENT WAY POSSIBLE AND MAKE SURE THE SERVICE IS MORE AFFORDABLE HE SAID MCCAW IS ALSO ENHANCING ITS NETWORK WITH NEW EQUIPMENT THAT WILL LET IT HANDLE MILLIONS OF TRANSMISSIONS FROM LAPTOP COMPUTERS MCCAW EXPECTS TO HAVE ITS CELLULAR DIGITAL PACKET DATA SERVICE AVAILABLE IN THE MORE THAN 100 US MARKETS IN WHICH IT OPERATES BY THE END OF 1994 SAID A MCCAW SPOKESMAN WITH OUR CELLULAR PHONE SERVICE WE'RE THE EMBODIMENT OF ONE PERSON ONE NUMBER AND SOON THAT WILL EXTEND TO YOUR PORTABLE COMPUTER ON MONDAY AT THE NEWS CONFERENCE ANNOUNCING THE AT&TMCCAW COMBINATION AT&T CHAIRMAN ROBERT E ALLEN POINTED TO AT&T'S LATEST TELEVISION COMMERCIALS ON FUTURE COMMUNICATION SERVICES AND HOW THESE RELATE TO MCCAW ONE SPOT SHOWS PEOPLE SENDING FAXES FROM THE BEACH USING A PORTABLE DATA DEVICE MADE BY AT&T AFFILIATE EO INC ANOTHER SPOT SHOWS CARS SPEEDING THROUGH TOLL BOOTHS WITHOUT HAVING TO STOP BECAUSE A RADIO TRANSMITTER AUTOMATICALLY RECORDS THE TOLL PAYMENT THERE IS A GREAT SENSE OF URGENCY AT AT&T TO BOOST GROWTH AT ITS COMMUNICATIONSERVICES BUSINESS COMPANY INSIDERS SAID MR ALLEN HAS GROWN SOMEWHAT FRUSTRATED WITH AT&T'S INABILITY TO INCREASE REVENUE GROWTH IN ITS LONGDISTANCE SERVICES BUSINESS AT THE INDUSTRY RATE OF 4 TO 5 A YEAR WITH AT&T NOW EMBROILED IN A COMMODITY WAR AGAINST RIVALS MCI COMMUNICATIONS CORP AND SPRINT CORP THE MCCAW ACQUISITION OFFERS A GOOD BREAKOUT STRATEGY MR MANDL SAID MCCAW'S REVENUE AND SUBSCRIBER BASE EACH ARE GROWING MORE THAN 30 A YEAR MCCAW HAD REVENUE OF 11 BILLION FOR 1992 MR MANDL RECKONS THAT ADDING MCCAW'S TWO MILLIONPLUS CUSTOMERS TO AT&T'S BASE OF 90 MILLION SUBSCRIBERS SHOULD SPUR NEW GROWTH SINCE THOSE MCCAW SUBSCRIBERS WILL BE MAKING LONGDISTANCE CALLS WITH THEIR CELLULAR PHONES MCI'S REVENUE GREW 21 A YEAR OVER THE LAST 10 YEARS MR MANDL SAID FOR US NOT TO GROW AT LEAST 5 WOULD BE A MISS MR MANDL 49 YEARS OLD AND A FORMER CHAIRMAN OF SEALAND SERVICES INC HAS MADE MAJOR CHANGES IN AT&T'S FINANCIAL MANAGEMENT SINCE MR ALLEN LURED HIM TO THE COMPANY TWO YEARS AGO TO BECOME AT&T'S CHIEF FINANCIAL OFFICER IN THAT POST MR MANDL STREAMLINED AT&T'S FINANCES HE PRESSURED AT&T'S BUSINESS UNITS TO EARN THEIR COST OF CAPITAL PUTTING MANAGERS ON STRICT INCENTIVE PLANS AND FORCING THEM TO CUT COSTS AND BOOST PROFITS HE GOT AT&T TO SELL A PIECE OF ITS HIGHLY SUCCESSFUL LEASING COMPANY A FEW WEEKS AGO IN A MASSIVE SENIOR MANAGEMENT OVERHAUL MR MANDL WAS NAMED TO HEAD AT&T'S COMMUNICATION SERVICES GROUP MAKING HIM A LEADING CONTENDER TO SUCCEED MR ALLEN THE UNIT ACCOUNTS FOR TWOTHIRDS OF AT&T'S 65 BILLION IN REVENUE AND GENERATES 5 BILLION A YEAR IN OPERATING PROFIT THAT UNIT ACCOUNTS FOR 80 OF AT&T'S WEALTH SAID JACK B GRUBMAN AN ANALYST AT PAINEWEBBER INC STILL THEY NEED TO GROW THE 55 BILLION LONGDISTANCE INDUSTRY IS GROWING 4 TO 5 A YEAR AND ITS TRAFFIC VOLUME IS GROWING AT 6 TO 8 A YEAR MR GRUBMAN ESTIMATED IF AT&T GREW REVENUE AT 5 INSTEAD OF THE CURRENT 1 THAT EXTRA 4 WOULD ADD 16 BILLION IN REVENUE AND ABOUT 10 CENTS TO 15 CENTS A SHARE IN EARNINGS HE ADDED COMPETITORS AREN'T GOING TO ROLL OVER FOR AT&T WE ALWAYS FIGURED THEY'D TAKE FULL CONTROL OF MCCAW SAID AN MCI SPOKESMAN ADDING THAT THE COMPANY HAS ITS OWN PLAN TO CHALLENGE THE NEW AT&T WIRELESS SERVICES AN MCILED CONSORTIUM IS SEEKING A NATIONAL LICENSE TO OFFER SOCALLED PERSONAL COMMUNICATION SERVICE A PCS SERVICE SUCH AS THAT PROPOSED BY MCI WOULD ALLOW CONSUMERS TO MAKE PHONE CALLS OR SEND DATA OVER A WIRELESS NETWORK THAT USES A RADIO FREQUENCY THAT'S DIFFERENT THAN THAT USED BY CELLULAR PHONES THE NATION'S SECONDLARGEST LONGDISTANCE CARRIER HAS THE RESOURCES THANKS TO A 43 BILLION CASH PAYMENT FROM BRITISH TELECOMMUNICATIONS PLC WHICH RECENTLY AGREED TO BUY 20 OF MCI EVEN WITH THE COSTLY ACQUISITION OF MCCAW AT&T WON'T GET COASTTOCOAST CELLULAR COVERAGE SAID GERALD H TAYLOR PRESIDENT OF CONSUMER MARKETS AT MCI MCCAW'S NETWORK COVERS ABOUT 35 OF THE US POPULATION THEY'VE GOT TO DO A LOT MORE TO BE UBIQUITOUS HE SAID MCCAW NONETHELESS HAS A GIANT HEAD START IT WILL PROBABLY TAKE AN ADDITIONAL 2 1/2 TO THREE YEARS BEFORE THE FIRST LOCAL PERSONAL COMMUNICATIONS NETWORKS SUCH AS MCI'S ARE UP AND RUNNING 9308180036 930818 AMEX SEAT SELLS FOR 150000 NEW YORK THE AMERICAN STOCK EXCHANGE SAID A SEAT SOLD FOR 150000 UP 15000 FROM THE LAST SALE JULY 22 SEATS ARE CURRENTLY QUOTED AT 145000 BID AND 159000 ASKED 9308180035 930818 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN CHARITIES AND DONORS FACE TOUGH NEW RULES NEXT YEAR MANY CHARITIES WILL HAVE TO GEAR UP QUICKLY TO COMPLY WITH THE NEW LAW OR FACE STIFF PENALTIES WARNS RICK SPEIZMAN OF PRICE WATERHOUSE STARTING NEXT JANUARY 1 CHARITIES GENERALLY MUST PROVIDE WRITTEN STATEMENTS TO DONORS WHO GIVE MORE THAN 75 AND GET SOMETHING IN RETURN SUCH AS A MEAL OR THEATER TICKETS THEY MUST ALSO SAY HOW MUCH IS DEDUCTIBLE SUPPOSE A DONOR GIVES 100 TO CHARITY AND GETS A DINNER VALUED AT 40 THE CHARITY MUST TELL THE DONOR IN WRITING THAT ONLY 60 IS DEDUCTIBLE CHARITIES THAT DON'T COMPLY MAY FACE A PENALTY OF UP TO 5000 PER FUNDRAISING EVENT OR MAILING SEPARATELY DONORS WHO GIVE 250 OR MORE MUST GET WRITTEN SUBSTANTIATION FROM THE CHARITY TO SUPPORT A DEDUCTION CANCELED CHECKS NO LONGER WILL BE ENOUGH THIS 250 RULE APPLIES TO EACH SEPARATE GIFT NOT THE TOTAL OF A DONOR'S GIFTS TO EACH CHARITY THE IRS IS EXPECTED TO ISSUE RULES TO PREVENT DONORS FROM ELUDING THE 250 RULE BY WRITING MULTIPLE CHECKS TO THE SAME CHARITY ON THE SAME DAY FEWER HEADACHES ARE LIKELY IN 1994 FOR MANY PEOPLE WHO PAY ESTIMATED TAXES UNDER THE OLD LAW EVEN THE EXPERTS OFTEN HAD TROUBLE FIGURING OUT HOW TO AVOID PENALTIES FOR UNDERPAYING QUARTERLY ESTIMATED TAXES COMPLIANCE WAS ESPECIALLY TRICKY FOR UPPERINCOME PEOPLE WITH INCOMES THAT FLUCTUATE WIDELY FROM YEAR TO YEAR BUT THE NEW LAW STARTING NEXT YEAR WILL BE MUCH LESS COMPLEX FOR MANY TAXPAYERS SAYS STEVEN WEINSTEIN OF ARTHUR ANDERSEN NEXT YEAR PEOPLE WITH ADJUSTED GROSS INCOME OVER 150000 IN 1993 CAN AVOID PENALTIES BY PAYING 110 OF THEIR 1993 TAX BILL OR 90 OF THEIR ACTUAL 1994 TAB IF THEY PREFER THOSE UNDER 150000 CAN PAY 100 OF THE PREVIOUS YEAR'S BILL OR 90 OF THE CURRENTYEAR TAB FOR MARRIED COUPLES FILING SEPARATELY THE THRESHOLD IS 75000 UNDER THE OLD LAW MANY PEOPLE WITH INCOME OVER 75000 AND AN INCREASE OF MORE THAN 40000 FROM THE PREVIOUS YEAR HAD TO PAY 90 OF THEIR ACTUAL LIABILITY THAT OFTEN WAS NEARLY IMPOSSIBLE TO PREDICT THE CHANGES WILL MEAN FEWER ULCERS FOR PREPARERS AND PROBABLY ALSO LOWER PREPARATION FEES FOR SOME TAXPAYERS SAYS THOMAS OCHSENSCHLAGER OF GRANT THORNTON SECURITIES DEALERS BRACE FOR A HIT FROM THE NEW TAX LAW MANY BROKERAGE HOUSES AND OTHER FINANCIAL INSTITUTIONS ARE SMARTING FROM A DEFEAT IN CONGRESS THE NEW LAW INCLUDES A PROVISION REQUIRING THEM TO USE THE MARKTOMARKET METHOD FOR YEARS ENDING ON OR AFTER DEC 31 1993 THIS CHANGE WILL RAISE 38 BILLION OVER FIVE YEARS THE JOINT COMMITTEE ON TAXATION SAYS IN ESSENCE DEALERS WILL GENERALLY BE REQUIRED TO VALUE SECURITIES INVENTORIES AT MARKET PRICES NOT COST OR OTHER METHODS FOR YEAREND TAX PURPOSES THIS IS A FUNDAMENTAL CHANGE SAYS ROGER W EINIGER OPPENHEIMER & CO'S VICE CHAIRMAN THERE ARE SOME EXCEPTIONS AND GRAY AREAS STILL BRETT YACKER OF PRICE WATERHOUSE SAYS MOST BROKERAGE HOUSES AND MANY OTHER FINANCIAL INSTITUTIONS NOW WILL HAVE SIGNIFICANT INCREASES IN CURRENT TAXES DUE THUS AFFECTING THEIR CASH FLOW EVEN SO IT WILL NOT HAVE A DRAMATIC EFFECT ON EARNINGS OF LARGE BROKERAGE FIRMS SAYS ALISON DEANS AN ANALYST AT SMITH BARNEY SHEARSON HIGHER GAS TAXES WILL HIT RESIDENTS OF WYOMING GEORGIA MONTANA AND MISSOURI THE HARDEST THE TAX FOUNDATION SAYS A WYOMING FAMILY OF FOUR CAN EXPECT TO PAY AN ADDITIONAL 112 A YEAR A LONG WAY TO GO SINCE 1961 THE TREASURY HAS RECEIVED GIFTS OF 25 MILLION FROM PEOPLE TO HELP CUT THE NATIONAL DEBT THE DEBT NOW TOTALS A RECORD 436 TRILLION LUXURY TAXES ON NEW FURS JEWELRY BOATS AND PLANES HAVE BEEN REPEALED RETROACTIVE TO JANUARY 1 THUS ANYONE WHO PAID THE 10 TAX THIS YEAR CAN APPLY FOR A REFUND BUT APPLY TO THE MERCHANT WHO SOLD THE ITEM NOT THE IRS WHOOPS CONGRESS BLUNDERS IN REVISING THE LUXURY TAX ON CARS HOUSESENATE CONFEREES AGREED TO CHANGE THE LUXURY TAX ON CARS AND OTHER VEHICLES BUT SHARPEYED ACCOUNTANTS AND IRS OFFICIALS SPOTTED A SNAFU THE FINAL LAW CONTAINS LANGUAGE THAT POSTPONES THE CHANGE SINCE A DISCREPANCY EXISTS BETWEEN THE CONFERENCE REPORT AND THE LAW THE IRS SAYS THE LAW MUST GOVERN THUS CAR BUYERS OWE UP TO 200 MORE IN TAXES AT LEAST TEMPORARILY THAN CONGRESS PLANNED UNDER THE OLD LAW ANYONE WHO BOUGHT A NEW CAR FOR OVER 30000 OWED A 10 TAX ON THE AMOUNT OVER THAT LEVEL THUS A BUYER OF A 32000 CAR OWED 200 CONFEREES AGREED TO INDEX THE THRESHOLD FOR INFLATION RAISING IT TO 32000 THIS YEAR ON SALES ON OR AFTER AUGUST 10 THE DAY PRESIDENT CLINTON SIGNED THE BILL BUT ALAS THE LAW'S ACTUAL WORDING CONTAINS CONVOLUTED LANGUAGE THAT LEFT THE 1993 THRESHOLD UNCHANGED SAYS ROBERT BROWN OF KPMG PEAT MARWICK SO THAT'S THE LAW UNLESS IT'S CHANGED CAR DEALER GROUPS WARN MEMBERS TO CONTINUE COLLECTING THE LUXURY TAX ON ANY SALE OVER 30000 BRIEFS BETTER HAVE A GOOD REPLY VIRGINIA'S TAX DEPARTMENT ASKS 470 CERTIFIED PUBLIC ACCOUNTANTS TO EXPLAIN WHY THEY DIDN'T FILE INDIVIDUAL STATE RETURNS IN RECENT YEARS A SONG BY CAPITOL STEPS A SATIRICAL GROUP OPENS WITH PRESIDENT CLINTON MUSING I KNOW I SAID I WOULD FIND A CABINET THAT COULD CUT DOMESTIC SPENDING MADE A LITTLE MISTAKE FOUND A CABINET THAT CUT SPENDING ON DOMESTICS 9308180033 930818 BUSINESS BRIEF UNIONFED FINANCIAL CORP FOUR BRANCHES TO BE SOLD TO CALIFORNIA FEDERAL BANK UNIONFED FINANCIAL CORP PURSUING A CAPITALIZATION PLAN TO AVOID SEIZURE BY FEDERAL REGULATORS SAID IT ENTERED INTO A DEFINITIVE AGREEMENT TO SELL FOUR BRANCHES OF ITS UNION FEDERAL BANK THE TROUBLED BREA CALIF BANK HOLDING COMPANY DIDN'T DISCLOSE THE PURCHASE PRICE OF THE BRANCHES WHICH WERE SOLD TO CALIFORNIA FEDERAL BANK A LOS ANGELES SAVINGS AND LOAN HOLDING COMPANY THE SALES WHICH ARE SUBJECT TO APPROVAL BY THE OFFICE OF THRIFT SUPERVISION ARE PART OF A RESTRUCTURING MANDATED BY THE FEDERAL AGENCY WHICH INFORMED UNIONFED ON JUNE 3 THAT ITS BANK UNIT HAD BEEN CLASSIFIED AS CRITICALLY UNDERCAPITALIZED THE REGULATORS GAVE UNIONFED 90 DAYS TO RESTRUCTURE OR FACE CLOSURE THE COMPANY ALSO SAID THAT ITS 1FOR10 REVERSE STOCK SPLIT APPROVED BY UNIONFED'S STOCKHOLDERS AS PART OF THE CAPITALIZATION PLAN WILL BECOME EFFECTIVE AT THE CLOSE OF BUSINESS TODAY 9308180032 930818 TREASURY PLANS TO SELL 244 BILLION IN BILLS WASHINGTON THE TREASURY PLANS TO RAISE 600 MILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 244 BILLION IN SHORTTERM BILLS TO REDEEM 238 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON NOV 26 1993 AND FEB 24 1994 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794G65 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794J21 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT MONDAY 9308180031 930818 WHO'S NEWS CAMBRIDGE BIOTECH CORP CAMBRIDGE BIOTECH CORP WORCESTER MASS JAMES C BASS WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS HEALTHCARE PRODUCTS COMPANY MR BASS WHO WAS A SENIOR FINANCIAL OFFICER AT WANG LABORATORIES INC SUCCEEDS PETER P HARTMAN WHO WILL LIMIT HIS SERVICE TO CAMBRIDGE BIOTECH FOR HEALTH REASONS IT SAID 9308180030 930818 SCI SYSTEMS RECEIVES CONTRACT HUNTSVILLE ALA SCI SYSTEMS INC SAID IT HAS RECEIVED A CONTRACT FOR AT LEAST 100 MILLION IN COMPUTER PRODUCTS SPECIFIC TERMS WEREN'T DISCLOSED BUT COMPANY OFFICIALS SAID SHIPMENTS HAVE BEGUN FOR AN INITIAL ORDER IN EXCESS OF 100 MILLION THE ELECTRONICS CONCERN WOULDN'T ELABORATE OR DISCLOSE WHAT PRODUCTS ARE BEING SHIPPED OR NAME THE CUSTOMER THE CONTRACT IS FROM AN EXISTING CUSTOMER'S FOREIGN SUBSIDIARY SCI SAID 9308180029 930818 MARKETING & MEDIA TURNER CLEARS ACCORD TO BUY FILM PRODUCERS BY ANITA SHARPE AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL TURNER BROADCASTING SYSTEM INC'S BOARD APPROVED THE ACQUISITION OF CASTLE ROCK ENTERTAINMENT AND NEW LINE CINEMA CORP FOR MORE THAN 600 MILLION FOLLOWING A DAYLONG BOARD MEETING IN NEW YORK YESTERDAY TURNER'S DIRECTORS VOTED TO PAY ABOUT 500 MILLION IN NEWLY ISSUED STOCK FOR NEW LINE AND TO ASSUME ABOUT 70 MILLION IN DEBT THE COMPANY ALSO AGREED TO PAY ROUGHLY 100 MILLION IN CASH FOR CASTLE ROCK IT ALSO WILL ASSUME ABOUT 46 MILLION IN DEBT OWED TO WESTINGHOUSE ELECTRIC CORP 15 MILLION IN DEBT OWED TO SONY CORP AND 100 MILLION IN BANK DEBT COLLATERALIZED BY FUTURE FILM AND TV PRODUCTIONS A CASTLE ROCK INSIDER SAID TURNER ALSO PLANS TO ENHANCE CASTLE ROCK'S PRODUCTION SCHEDULE THE AGREEMENTS WERE THE FIRST VICTORY IN A LONG TIME FOR RE TED TURNER THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WHO HAS BEEN TRYING TO GET INTO THE MOVIEPRODUCTION BUSINESS AND OUT FROM UNDER THE THUMB OF HIS BOARD MR TURNER HAS HAD TALKS CONCERNING NUMEROUS BUSINESS COMBINATIONS EARLIER THIS YEAR BUT NONE HAD GOTTEN TO THE BOARDROOM TIME WARNER INC THE BIG TURNER SHAREHOLDER THAT HAS THREE OF TURNER'S 15 BOARD SEATS HAD BEEN OPPOSED TO THE TRANSACTION TIME WARNER HAD WANTED TO PROTECT ITS OWN WARNER BROS STUDIO FROM A NEW POTENT RIVAL THAT COULD BE FORMED BY COMBINING NEW LINE AND CASTLE ROCK INDIVIDUALS CLOSE TO THE NEGOTIATIONS HAVE SAID BUT TIME WARNER'S OPPOSITION DISSOLVED THE TURNER DIRECTORS FROM TIME WARNER DID ASK SOME QUESTIONS DURING THE BOARD MEETING BUT AVOIDED A SHOWDOWN FOLLOWING THE BOARD APPROVAL TURNER SIGNED A LETTER OF INTENT TO ACQUIRE NEW LINE FOR ABOUT 21 MILLION CLASS B COMMON SHARES UNDER THE AGREEMENT EACH SHARE OF NEW LINE COMMON STOCK WILL BE CONVERTED INTO 096 SHARE OF TURNER BROADCASTING CLASS B COMMON SHARES THE TRANSACTION IS SUBJECT TO THE APPROVAL OF NEW LINE SHAREHOLDERS AND IS SCHEDULED TO CLOSE NO LATER THAN FEB 28 TURNER CLASS A COMMON STOCKHOLDERS ARE ENTITLED TO ONE VOTE A SHARE CLASS B COMMON STOCKHOLDERS ARE ENTITLED TO ONEFIFTH VOTE A SHARE IN AMERICAN STOCK EXCHANGE TRADING YESTERDAY TURNER CLOSED UP 625 CENTS AT 24125 NEW LINE WAS UP 1625 AT 18125 NEW LINE WITH ABOUT 27 OF ITS STOCK OWNED BY CHIEF EXECUTIVE OFFICER ROBERT SHAYE IS BEST KNOWN FOR THE NIGHTMARE ON ELM STREET AND TEENAGE MUTANT NINJA TURTLES FILMS APART FROM THE AGREEMENT WHICH WAS ALSO APPROVED BY NEW LINE'S BOARD MR SHAYE IS EXPECTED TO BE APPOINTED TO TURNER'S BOARD EVENTUALLY A SOURCE SAID NEW LINE WHICH AGREED NOT TO SOLICIT COMPETING OFFERS HAS BEEN ON A FINANCIAL ROLL RECENTLY WITH SIXMONTH PROFIT UP 58 TO 57 MILLION FROM 36 MILLION A YEAR EARLIER REVENUE FOR THE PERIOD SURGED 74 TO 176 MILLION FROM 101 MILLION A YEAR AGO NEW LINE REPORTED REVENUE OF 227 MILLION FOR ALL OF 1992 WORKING THROUGH THE NIGHT CASTLE ROCK AND TURNER NEGOTATIORS WERE UNDER INTENSE PRESSURE TO DEVISE AN AGREEMENT IN TIME FOR YESTERDAY MORNING'S BOARD MEETING CASTLE ROCK PRODUCER OF THE CURRENT HIT IN THE LINE OF FIRE IS 45OWNED BY SONY CORP WITH THE BALANCE HELD BY A MANAGEMENT GROUP AND DIRECTOR ROB REINER UNDER THE TURNER PURCHASE SONY WILL RETAIN RIGHTS TO DOMESTIC DISTRIBUTION OF CASTLE ROCK'S PRODUCTIONS IN THEATERS THROUGH 1997 SAID ALAN HORN A MANAGING PARTNER OF CASTLE ROCK SONY ALSO RETAINS RIGHTS TO 11 OF CASTLE ROCK'S HOMEVIDEO PRODUCTIONS HE ADDED CASTLE ROCK AND NEW LINE WILL BE RUN SEPARATELY MR HORN SAID 9308180027 930818 CROSSBORDER EQUITY INVESTMENT IS EXPECTED TO KEEP GROWING BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON MILAN STILL MIGHT BE THE PLACE TO GO FOR GREAT OPERA AND CHIC CLOTHES BUT IF YOU WANT TO SELL STOCK YOU MIGHT CONSIDER PASSING UP ITALY'S FINANCIAL AND BUSINESS CENTER AND TRY THE BALTIMORE AREA INSTEAD RANKED 22ND IN 1991 MILAN LAST YEAR FELL OFF THE LIST OF THE WORLD'S 25 BIGGEST CITIES IN TERMS OF INSTITUTIONAL STOCK HOLDINGS ACCORDING TO TECHNIMETRICS INC A NEW YORK INFORMATION SERVICES COMPANY SPECIALIZING IN FINANCIAL DATABASES MEANWHILE THE BALTIMOREWASHINGTON AREA EDGED INTO THE 24TH SLOT JUST AHEAD OF BRUSSELS WHICH HAS TAKEN UP THE REAR FOR THE PAST TWO YEARS ALL TOLD THE TOP 25 METROPOLITAN AREAS ACCOUNT FOR 49 TRILLION OF INSTITUTIONAL EQUITY INVESTMENT UP ONLY 17 FROM A YEAR EARLIER THAT'S BECAUSE THE 19 FALL IN JAPAN NEARLY OFFSET AN 184 RISE IN NORTH AMERICAN CITIES AND A 74 INCREASE IN EUROPEAN FINANCIAL CENTERS THE TOP 10 CITIES IN THE GLOBAL EQUITY SWEEPSTAKES TOKYO NEW YORK LONDON ZURICH BOSTON GENEVA PARIS SAN FRANCISCO FRANKFURT AND LOS ANGELES HAVEN'T CHANGED IN ORDER OF RANK BUT AT THE END OF LAST YEAR THE TOTAL AT TOKYO WHERE INSTITUTIONAL INVESTORS HAVE 1367 TRILLION OF EQUITY UNDER MANAGEMENT WAS 25 SMALLER THAN IT WAS IN 1990 MEANWHILE INSTITUTIONS IN THE 11 US CITIES THAT MADE IT INTO TECHNIMETRICS' GLOBAL TOP 25 LIST HAVE 164 TRILLION INVESTED IN STOCKS UP 65 FROM TWO YEARS AGO ANALYSTS SAY IT IS BECOMING INCREASINGLY IMPORTANT FOR CORPORATE EXECUTIVES TO KNOW WHERE THEIR COMPANY'S STOCK IS TRADED AND TO MAKE EFFORTS TO CULTIVATE RELATIONSHIPS WITH INSTITUTIONAL MONEY MANAGERS ABROAD THERE IS NO QUESTION THAT CROSSBORDER INVESTMENT IN EQUITIES HAS BEEN RISING AND WILL BE RISING FOR A LONG TIME SAID NEIL RYDER SENIOR PARTNER AT SAGE PARTNERS A LONDONBASED CROSSBORDER INVESTOR RELATIONS CONSULTING CONCERN NOTING THAT EMERGING MARKETS ARE SOAKING UP A LOT OF THE NEW MONEY HE ADDED THE CLEAR IMPLICATION OF THAT PARTICULARLY FOR BIG COMPANIES IN THE DEVELOPED WORLD IS MORE COMPETITION FOR FUNDS AND MUCH MORE INTERNATIONAL COMPETITION FOR FUNDS WHAT'S MORE KNOWING WHERE THAT INVESTMENT IS COMING FROM CAN BE CRUCIAL FOR A COMPANY AND INVESTMENT BANKERS WANTING TO CAPITALIZE ON THE FLOWS IF YOU ARE A NORTH AMERICAN COMPANY AND YOU AREN'T VISITING INVESTORS IN LONDON ZURICH GENEVA AND PARIS FUND MANAGERS LOCATED IN THOSE CITIES WILL TRADE YOUR STOCK IN ANY EVENT SAID FRED STONE VICE PRESIDENT INTERNATIONAL FOR TECHNIMETRICS IN LONDON HE ASSERTED THAT SUCH VISITS AND THE PRESENTATIONS THAT GO ALONG WITH THEM CAN SOMETIMES BOOST A COMPANY'S STOCK PRICE NO COMMUNICATION TO OVERSEAS FUND MANAGERS MEANS DIMINISHED CONTROL OVER AN INCREASING PROPORTION OF THE FREE FLOAT OF YOUR STOCK SAID MR STONE MONEY MANAGERS SAID THAT IF CURRENT TRENDS CONTINUE THERE'S A GOOD CHANCE THAT BY YEAR END JAPANESE INSTITUTIONAL STOCK OWNERSHIP WILL BE BACK TO WHERE IT WAS TWO YEARS AGO AND THEN SOME MEASURED IN DOLLARS JAPANESE SHARES ARE UP 59 THIS YEAR ON THE BACK OF A HOT MARKET AND A 23 RISE IN THE YEN ACCORDING TO THE DOW JONES WORLD STOCK INDEX IN FACT HEFTY RALLIES IN MAJOR STOCK MARKETS THIS YEAR COULD SIGNIFICANTLY BOOST INSTITUTIONAL EQUITY HOLDINGS IN SEVERAL MAJOR FINANCIAL CENTERS MEASURED IN DOLLARS THE HONG KONG STOCK MARKET IS UP 35 GERMANY 18 SWITZERLAND 16 AND FRANCE 12 ACCORDING TO THE DOW JONES INDEX THE 30 RISE IN ITALIAN SHARES COULD PUT MILAN BACK INTO THE TOP 25 THE MOST OBVIOUS TRENDS ARE THE LARGE FLOW OF MONEY COMING FROM THE US TO EUROPE AND THE FLOW OF INVESTMENT MONEY GOING FROM THE MOST SOPHISTICATED EUROPEAN INVESTMENT INSTITUTIONS INTO EMERGING MARKETS SAID MR STONE IN ADDITION EUROPEAN FUND MANAGERS ESPECIALLY THE BRITISH ARE INVESTING MORE IN OTHER EUROPEAN COUNTRIES INCREASINGLY NORTH AMERICAN MUTUAL FUNDS DEDICATED TO INVESTING IN US STOCKS ARE BUYING THE SHARES OF FOREIGN COMPANIES THAT ARE LISTED ON US EXCHANGES SAID MR STONE HE NOTED THAT THERE IS MASSIVE INVESTMENT IN COMPANIES SUCH AS ROYAL DUTCH PETROLEUM ONE REASON IS BECAUSE IT IS LISTED IN THE STATES US INSTITUTIONS ALSO HAVE MAJOR STAKES IN MEXICAN TELEPHONE COMPANY TELEFONOS DE MEXICO SA TELMEX THREE BRITISH COMPANIES DRUG MAKERS GLAXO HOLDINGS PLC AND SMITHKLINE BEECHAM PLC PLUS BRITISH PETROLEUM CO AND UNILEVER NV AN ANGLODUTCH FOOD AND PERSONAL PRODUCTS COMPANY COMPARED WITH THEIR TOTAL EQUITY ASSETS JAPANESE INSTITUTIONAL INVESTORS HOLD A SURPRISINGLY SMALL AMOUNT OF FOREIGN STOCK ONLY ABOUT 4 OF TOKYOBASED INSTITUTIONS' STOCK HOLDINGS IS INVESTED IN US AND EUROPEAN SHARES ACCORDING TO TECHNIMETRICS THAT COMPARES WITH 37 OF THE MONEY MANAGED IN ZURICH GENEVA AND BASEL OF SWITZERLAND WHOSE DOMESTIC STOCK MARKET IS MUCH SMALLER THAN JAPAN'S AT THE END OF 1992 US INSTITUTIONS HAD JUST OVER 7 OF THEIR TOTAL EQUITY HOLDINGS INVESTED ABROAD ACCORDING TO TECHNIMETRICS THE REALITY IS THAT THE JAPANESE ARE VERY VERY WRAPPED UP IN INVESTING IN THEIR OWN MARKET SAID MR STONE 9308180026 930818 WHO'S NEWS HANGER ORTHOPEDIC GROUP INC HANGER ORTHOPEDIC GROUP INC BETHESDA MD ROBERT GLASER WAS NAMED A DIRECTOR OF THIS PROVIDER OF PATIENT CARE SERVICES AND PRODUCTS FOR ORTHOPEDIC AND PROSTHETIC REHABILITATION HIS APPOINTMENT FILLS A VACANCY DR GLASER 72 YEARS OLD IS DIRECTOR FOR MEDICAL SCIENCE AND A TRUSTEE OF THE LUCILLE P MARKEY CHARITABLE TRUST WHICH PROVIDES GRANTS FOR BIOMEDICAL RESEARCH 9308180025 930818 BUSINESS BRIEF POLICY MANAGEMENT SYSTEMS CHANGE OF ACCOUNTANTS STALLS SECONDQUARTER STATEMENT POLICY MANAGEMENT SYSTEMS CORP OF COLUMBIA SC SAID IT DISMISSED ITS INDEPENDENT ACCOUNTANT PROMPTING A FURTHER DELAY IN THE RELEASE OF ITS SECONDQUARTER RESULTS POLICY MANAGEMENT SAID IT DISMISSED ARTHUR ANDERSEN & CO WHICH HAD AUDITED THE COMPANY'S 1992 FINANCIAL STATEMENTS THE INSURANCE SOFTWARE COMPANY SAID IT HAS HIRED COOPERS & LYBRAND AS RECOMMENDED BY ITS AUDIT COMMITTEE AND BOARD THE ACCURACY OF THE INSURANCE SOFTWARE COMPANY'S FINANCIAL REPORTING HAS BEEN THE SUBJECT OF FEDERAL AND INTERNAL INVESTIGATIONS IN THE PAST FEW MONTHS LAST WEEK ARTHUR ANDERSEN SAID IT WOULD WITHDRAW ITS AUDIT OPINION ON THE 1992 FINANCIAL STATEMENTS A MOVE THAT CONTRIBUTED TO A DELAY IN REPORTING SECONDQUARTER RESULTS IN ADDITION POLICY MANAGEMENT SAID THAT ERNST & YOUNG NOTIFIED THE COMPANY THAT SEVERAL OF ITS REPORTS FOR PERIODS IN 1990 1991 AND 1992 SHOULD NO LONGER BE ASSOCIATED WITH THE COMPANY'S FINANCIAL STATEMENTS FOR THOSE YEARS ERNST & YOUNG CITED SIGNIFICANT UNCERTAINTY RELATED TO THE COMPANY'S ACCOUNTING PRACTICES 9308180024 930818 BUSINESS BRIEF COLUMBIA HOSPITAL CORP THREE HOSPITALS ARE SOLD RESOLVING ANTITRUST CONCERN COLUMBIA HOSPITAL CORP SAID IT SOLD THREE HOSPITALS ONE OF WHICH HAD RAISED ANTITRUST CONCERNS IN THE ITS PROPOSED MERGER WITH GALEN HEALTH CARE INC TERMS WEREN'T DISCLOSED THE FORT WORTH TEXAS HOSPITAL CHAIN SAID IT SOLD THE KISSIMMEE MEMORIAL HOSPITAL IN KISSIMMEE FLA AND THE WILLOW CREEK HOSPITAL IN ARLINGTON TEXAS TO A UNIT OF ADVENTIST HEALTH SYSTEM/SUNBELT HEALTH CARE CORP AN ORLANDO FLABASED NONPROFIT HOSPITAL CONCERN AS PART OF THE SALE ADVENTIST DROPPED A LAWSUIT IT FILED AGAINST COLUMBIA AND GALEN THE SUIT ALLEGED THAT COLUMBIA RENEGED ON AN AGREEMENT TO SELL ADVENTIST THE KISSIMMEE HOSPITAL FOR 24 MILLION PRIOR TO THE MERGER ACCORD WITH GALEN A SPOKESMAN FOR GALEN SAID THE FEDERAL TRADE COMMISSION WAS CONCERNED ABOUT THE EFFECT THE PROPOSED MERGER WOULD HAVE IN THE KISSIMMEE MARKET AND THE CORPUS CHRISTI TEXAS MARKET RICHARD L SCOTT COLUMBIA'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANIES BELIEVE THE SALE RESOLVES THE ISSUE IN KISSIMMEE COLUMBIA ALSO SOLD THOMASVILLE HOSPITAL IN THOMASVILLE ALA TO LOCAL MANAGEMENT AND OTHER INVESTORS 9308180023 930818 BUSINESS BRIEF AMOCO CORP CANADIAN SUBSIDIARY'S PROFIT FOR 1ST HALF PLEASES ANALYSTS AMOCO CORP'S WHOLLY OWNED CANADIAN SUBSIDIARY REPORTED SIXMONTH EARNINGS THAT ANALYSTS SAID COULD SET THE OIL AND GAS PRODUCER ON TRACK TOWARDS ITS FIRST ANNUAL PROFIT IN FIVE YEARS FOR THE FIRST HALF OF 1993 AMOCO CANADA PETROLEUM CO REPORTED NET INCOME OF 38 MILLION CANADIAN DOLLARS US289 MILLION ON REVENUE OF C2 BILLION BASED ON CANADIAN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES WHICH DIFFER FROM US PRINCIPLES IN THE TREATMENT OF FOREIGN CURRENCY EXCHANGE GAINS AND LOSSES AND INCOME TAXES THE COMPANY SAID THAT USING US PRINCIPLES ITS NET FOR THE SIXMONTH PERIOD WOULD BE C47 MILLION IN THE SAME PERIOD LAST YEAR IT REPORTED A C481 MILLION NET LOSS ON C18 BILLION IN REVENUE USING CANADIAN ACCOUNTING PRINCIPLES EQUIVALENT TO A C342 MILLION LOSS USING US PRINCIPLES AMOCO CANADA WHICH IS CANADA'S BIGGEST PRODUCER OF NATURAL GAS HASN'T BEEN PROFITABLE SINCE IT PAID US39 BILLION TO ACQUIRE DEBTSTRAPPED CANADIAN ENERGY COMPANY DOME PETROLEUM LTD IN 1988 9308180022 930818 WHO'S NEWS TOTAL PHARMACEUTICAL CARE INC TOTAL PHARMACEUTICAL CARE INC TORRANCE CALIF JOHN F COMBS 42 YEARS OLD WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS PROVIDER OF HOME INFUSION THERAPY AND RELATED SERVICES MR COMBS PREVIOUSLY VICE PRESIDENT AND TREASURER OF FLUOR CORP SUCCEEDS MICHAEL A PIRAINO 40 WHO RESIGNED 9308180021 930818 BUSINESS BRIEF ZALE CORP LOSS IN FISCAL FIRST QUARTER SHRANK FROM YEAR EARLIER ZALE CORP DALLAS REPORTED ITS FISCAL FIRSTQUARTER LOSS NARROWED TO 334 MILLION FROM 432 MILLION A YEAR EARLIER BUT ITS OPERATING RESULTS LAGGED WELL BEHIND PREVIOUS PROJECTIONS FOR THE JUNE 30 QUARTER THE COMPANY'S FIRST SINCE EMERGING FROM BANKRUPTCYCOURT PROCEEDINGS LAST MONTH SALES FELL TO 1836 MILLION FROM 2038 MILLION A YEAR EARLIER WHEN THE JEWELRY RETAILER HAD 220 MORE STORES OPEN THE COMPANY NOW OPERATES 1270 STORES PERSHARE FIGURES WEREN'T AVAILABLE BECAUSE THE COMPANY'S NEW SHARES HADN'T BEEN ISSUED DESPITE A SLIGHT INCREASE IN SAMESTORE SALES ZALE POSTED AN OPERATING LOSS BEFORE INTEREST AND REORGANIZATION COSTS OF 56 MILLION COMPARED WITH A 2 MILLION OPERATING LOSS A YEAR EARLIER THAT FELL WELL SHORT OF THE 21 MILLION OPERATING PROFIT PROJECTED BY ZALE IN A MARCH DISCLOSURE STATEMENT 9308180020 930818 WHO'S NEWS CONSOLIDATED STORES CORP CONSOLIDATED STORES CORP COLUMBUS OHIO BRADY J CHURCHES 35 YEARS OLD WAS NAMED PRESIDENT OF THIS CHAIN OF SPECIALTY CLOSEOUT RETAIL STORES MR CHURCHES FORMERLY EXECUTIVE VICE PRESIDENT MERCHANDISING SUCCEEDS WILLIAM G KELLEY 47 WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER JERRY D SOMMERS 43 WAS NAMED TO SUCCEED MR CHURCHES MR SOMMERS FORMERLY WAS SENIOR VICE PRESIDENT MERCHANDISING 9308180019 930818 INTERNATIONAL BRIEF SKANDINAVISKA ENSKILDA BANKEN OPERATING PROFIT IS REPORTED FOR 2ND PERIOD ENDING CRISIS IN WHAT UPBEAT EXECUTIVES TOUTED AS THE END OF AN ACUTE FINANCIAL CRISIS SWEDEN'S SKANDINAVISKA ENSKILDA BANKEN REBOUNDED TO A SECONDQUARTER OPERATING PROFIT THE BANK'S BOARD ALSO OPTED TO SEEK 53 BILLION KRONOR 6593 MILLION IN NEW EQUITY FROM CURRENT SHAREHOLDERS ONE OF THE BIGGEST EQUITY OFFERINGS EVER IN SWEDEN'S MARKETS PULLING BACK AN APPLICATION FOR A STATESPONSORED BAILOUT IN RESPONSE TO THE NEWS SE BANKEN'S BENCHMARK CLASS A STOCK JUMPED TO 785 KRONOR 977 AN INCREASE OF 95 KRONOR OR 138 SE BANKEN SAID IT POSTED AN OPERATING PROFIT OF 310 MILLION SWEDISH KRONOR IN THE SECOND QUARTER FROM A YEAREARLIER OPERATING LOSS OF ROUGHLY 11 BILLION KRONOR CHIEF EXECUTIVE BJOERN SVEDBERG TRACED THE TURNAROUND TO A SHARP DECLINE IN SWEDISH INTEREST RATES IN RECENT MONTHSCOMBINED WITH THE BANK'S OWN AGGRESSIVE EFFORTS TO TRIM COSTS MR SVEDBERG ACKNOWLEDGED THAT CONTINUED HEAVY LOAN LOSS PROVISIONS PROBABLY WILL KEEP THE BANK IN THE RED FOR THE FULL YEAR 9308180018 930818 HEARD ON THE STREET ECHOES OF NCR FOLLOW AT&TMCCAW CHEERS BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL WITH TWO BIG BOLD DEALS AMERICAN TELEPHONE & TELEGRAPH HAS CONVINCED THE STOCK MARKET THAT IT DESERVES A PREMIUM SHARE PRICE BASED ON ITS AGGRESSIVE PURSUIT OF ABOVEAVERAGE PROFIT GROWTH ANALYSTS ARE RHAPSODIZING ABOUT AT&T'S PLAN ANNOUNCED MONDAY TO BUY MCCAW CELLULAR COMMUNICATIONS FOR 126 BILLION IN STOCK I THINK AT&T IS JUST THE UNQUESTIONED LEADER OF A GIANT GLOBAL GROWTH INDUSTRY SAYS JACK GRUBMAN OF PAINEWEBBER YET A FEW INVESTORS REMAIN SKEPTICAL CAUTIONING THAT AT&T'S FIRST MEGADEAL THE 789 BILLION ACQUISITION OF NCR IN 1991 IS SHOWING DECLINING PROFITS IN A WEAK COMPUTER MARKET JOHN NEFF MANAGER OF THE 10 BILLION WINDSOR FUND SAID THAT IF HE WERE AN AT&T STOCKHOLDER I'D BE A LITTLE GRIEVED AT THE MCCAW DEAL PARTICULARLY SINCE THE NCR THING WASN'T SO FORTUITOUS MR NEFF SAYS HE BELIEVES AT&T CHAIRMAN ROBERT ALLEN MIGHT HAVE A LITTLE BIT OF AN EMPIRE COMPLEX THE MCCAW ACQUISITION MAY PROVE TO BE THE HOME RUN AT&T'S MANY BACKERS EXPECT SINCE ITS EARLIER PLAN TO ACQUIRE ONETHIRD OF MCCAW WAS ANNOUNCED IN NOVEMBER AT&T STOCK HAS SOARED 43 DESPITE THE NEED TO ISSUE ABOUT 200 MILLION NEW AT&T SHARES TO FINANCE THE MCCAW PURCHASE AT&T STOCK ROSE 125 CENTS YESTERDAY TO 60875 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ROBERT MORRIS TELECOMMUNICATIONS ANALYST AT GOLDMAN SACHS SAYS THAT AT&T IS TRADING AT A 15 PREMIUM TO THE REST OF THE MARKET BASED ON THE PROSPECT THAT ITS EARNINGS CAN GROW BY 15 TWICE AS FAST AS GOLDMAN PROJECTS FOR THE REST OF CORPORATE AMERICA YET AS IT DID WITH NCR AT&T IS DEVOTING HUGE FINANCIAL RESOURCES TO THE NEW DEAL TAKING A RISK THAT TECHNOLOGY MIGHT SHIFT OUT FROM UNDER THE CELLULAR PHONE BUSINESS THAT MCCAW'S ENTREPRENEURIAL MANAGERS MIGHT BOLT OR THAT THE PROFITS MIGHT NOT MATERIALIZE PLENTY OF OTHER MEGADEALS HAVE BEEN DISAPPOINTMENTS FROM THE 306 BILLION INCLUDING ASSUMED DEBT LEVERAGED BUYOUT OF RJR NABISCO TO THE 141 BILLION ACQUISITION OF WARNER COMMUNICATIONS BY TIME INC PHILIP MORRIS PAID 134 BILLION FOR KRAFT INC NEAR THE PEAK OF CONSUMERSTOCK PRICES CHEVRON PAID 134 BILLION FOR GULF OIL A YEAR OR SO BEFORE OIL PRICES COLLAPSED AT&T ALSO ISSUED 200 MILLION SHARES TO BUY NCR YET NCR'S 1993 OPERATING PROFIT IS EXPECTED TO SLIDE FALLING FROM 288 MILLION IN 1992 TO BELOW 150 MILLION THIS YEAR ACCORDING TO MR GRUBMAN NOT ONLY HAS THE ENTIRE COMPUTER INDUSTRY WEAKENED SINCE 1991 BUT NCR HAS MORE THAN HALF ITS SALES ABROAD WHERE THE EUROPEAN AND ASIAN ECONOMIES ARE EVEN WEAKER THAN THE US AT 150 MILLION NCR'S EXPECTED 1993 OPERATING EARNINGS WORK OUT TO LESS THAN 1 FOR EACH SHARE AT&T ISSUED TO BUY NCR THAT MAKES NCR A DRAG ON PROFITS CONSIDERING THAT AT&T'S OVERALL 1993 EARNINGS ARE EXPECTED TO COME IN AT AROUND 315 A SHARE MCCAW TOO IS EXPECTED TO EARN ONLY 150 MILLION IN 1994 AND SOME ANALYSTS DOUBT IT WILL ADD TO AT&T'S PROFITABILITY BEFORE 1997 AN AT&T SPOKESMAN SAID BOTH NCR AND MCCAW ARE IMPORTANT TO AT&T'S GOAL OF 10 ANNUAL LONGTERM EARNINGS GROWTH HE CONCEDED THE COMPUTER BUSINESS IS IN A SLUMP BUT SAID NCR REMAINS A LONGTERM STRATEGIC ACQUISITION THAT IS POSITIONED FOR STRONG GROWTH WHEN THE ECONOMY REBOUNDS THE SPOKESMAN SAID MR ALLEN ISN'T TRYING TO BUILD AN EMPIRE ONLY TO GET THE COMPANY INTO FASTGROWING AREAS LIKE NETWORK COMPUTING WIRELESS COMMUNICATIONS MULTIMEDIA AND MESSAGING BUT MR NEFF BELIEVES THE EXTRA AT&T SHARES NEEDED TO FINANCE MCCAW COULD WEIGH ON THE MARKET ESPECIALLY BECAUSE BRITISH TELECOMMUNICATIONS WILL BE SELLING THE AT&T STOCK IT STANDS TO RECEIVE FOR ITS 17 MCCAW STAKE GOLDMAN'S MR MORRIS SAYS THE MCCAW PURCHASE WILL ERASE MOST OF AT&T'S EXPECTED 1994 EARNINGS PICKUP HE IS CUTTING HIS 1994 ESTIMATE TO 320 A SHARE FROM 355 BUT IN THE LONG RUN HE PREDICTS MCCAW WILL ADD ONE PERCENTAGE POINT TO AT&T'S ANNUAL PROFITGROWTH RATE NOT ONLY CAN MCCAW HELP AT&T SAVE ON ITS 18 BILLION ANNUAL COST FOR ACCESS TO LOCAL PHONE LINES A GOAL AT&T DISAVOWS BUT IT CAN ADD TRAFFIC THROUGH AT&T'S EXISTING LONGDISTANCE NETWORK AT&T CAN ALSO HELP MCCAW SAVE ROUGHLY 250 MILLION ANNUALLY BY HALVING ITS INTEREST COSTS WHEN THE SMOKE CLEARS THE TWO DEALS WILL HAVE BOOSTED AT&T'S SHARES OUTSTANDING BY 400 MILLION SHARES OR 35 TO 155 BILLION SHARES THE MCCAW ACQUISITION WILL ALSO BOOST AT&T'S TOTAL DEBT BY 30 TO A HEFTY 213 BILLION BY COMPARISON AT&T'S IMPLIED STOCKMARKET VALUE WHEN IT ISSUES THE SHARES TO PAY FOR MCCAW WOULD BE ROUGHLY 95 BILLION THEY ARE STRONG FINANCIALLY SAYS MR MORRIS IT'S AWESOME THAT THEY CAN DO A 126 BILLION ACQUISITION AND ONLY DILUTE THEIR EARNINGS BY 10 BUT ANOTHER ANALYST ADDS YOU CAN'T SPEND 10 BILLION EVERY FEW YEARS FOREVER AT SOME POINT YOU'VE GO TO RUN YOUR PORTFOLIO OF BUSINESSES AS OPPOSED TO SHOCKING THE SYSTEM WITH AN ACQUISITION EVERY FEW YEARS PAINEWEBBER'S MR GRUBMAN SAYS NCR SHOULDN'T BE HELD AGAINST AT&T BECAUSE THAT ACQUSITION'S GOAL WAS TO SALVAGE AT&T'S OWN FALTERING COMPUTER BUSINESS NOT TO PURSUE THE KIND OF SAMEINDUSTRY GROWTH OPPORTUNITY REPRESENTED BY MCCAW AS A USE OF CAPITAL IT WAS MARGINAL AT BEST IT'S HARD TO SAY NCR WILL EVER EARN ITS COST OF CAPITAL MR GRUBMAN CONCEDES BUT HE SAYS THE HOSTILE TAKEOVER OF NCR WAS A BIG UGLY FIGHT THAT SERVED NOTICE AT&T WASN'T 'MA BELL' ANYMORE THE CHIEF TECHNOLOGY RISK IN THE MCCAW MERGER IS A COMPETING WIRELESS TECHNOLOGY CALLED PCS WHICH AT&T'S ARCHRIVAL MCI COMMUNICATIONS IS PURSUING WITH THE BACKING OF BRITISH TELECOM HOWEVER MCCAW HAS A FUNCTIONING NATIONWIDE SYSTEM WHEREAS PCS IS STILL AWAITING REGULATORY APPROVAL AT&T IS CURRENTLY SEEING SOME IMPROVEMENT IN PROFIT MARGINS THANKS TO A COOLINGOFF OF THE LONGDISTANCE TELEPHONE PRICE WARS EVERY TREND IN THE INDUSTRY IS WORKING IN THEIR FAVOR SAYS MR GRUBMAN HE BELIEVES THE STOCK SHOULD COMMAND A 25 PREMIUM TO THE MARKET'S MULTIPLE OF EARNINGS IMPLYING AN AT&T SHARE PRICE IN THE LOW 70S AND HE ADDS MY SINGLE BIGGEST WORRY IS WHEN DOES SOMETHING GO WRONG IN THE INDUSTRY 9308180017 930818 FOREIGN EXCHANGE DOLLAR CONTINUES TO DROP AGAINST YEN RECOVERS SOMEWHAT IN RELATION TO MARK BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK AFTER A DAYLONG ROLLERCOASTER RIDE AGAINST THE YEN THE DOLLAR ENDED MIXED TUESDAY IT FINISHED WEAKER AGAINST THE JAPANESE CURRENCY AFTER POSTING YET ANOTHER POSTWAR LOW AT 10040 YEN BUT RECOVERED SOME OF ITS MONDAY LOSSES AGAINST THE MARK MEANWHILE THE AUSTRALIAN DOLLAR WAS MUCH WEAKER FOLLOWING AN UNEXPECTEDLY STRONG INFLATION PREDICTION IN THE COUNTRY'S ANNUAL BUDGET STATEMENT LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16931 MARKS UP FROM 16870 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10110 YEN DOWN FROM 10155 YEN STERLING WAS TRADING AT 14880 DOWN FROM 14890 ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10158 YEN AND AT 16936 MARKS THE DOLLAR BEGAN ITS DAYLONG ODYSSEY WITH A PLUNGE IN EARLY ASIAN TRADING AFTER A WALL STREET JOURNAL STORY SUGGESTED THAT THE US FEDERAL RESERVE HADN'T ANY PLANS TO SUPPORT THE DOLLAR WITH INTERVENTION BUT THE US CURRENCY THEN SURPRISED THE MARKET WITH A SUBSTANTIAL RALLY HEAVY BANK OF JAPAN INTERVENTION TO BUY DOLLARS PLAYED A ROLE IN THE COMEBACK AS DID SOME CUSTOMER BUYING TRADERS SAID ANOTHER FACTOR WAS SPECULATION THAT A MEETING OF JAPANESE FINANCE OFFICIALS THURSDAY WOULD RESULT IN MEASURES TO DAMP THE YEN'S RISE TRADERS SAID AN OFFICIAL INTERESTRATE CUT ONE OF THE MEASURES SEEN LIKELY HAD BEEN LARGELY DISCOUNTED BY THE MARKET AND WOULDN'T HAVE MUCH IMPACT BUT DRASTIC MEASURES TO REDUCE JAPAN'S TRADE SURPLUS ARE ALSO BELIEVED TO BE ON THE TABLE INCLUDING A LOOSENING IN REGULATIONS GOVERNING FOREIGNMADE PRODUCTS OR A TAX CUT TO BOOST DOMESTIC SPENDING JAPAN'S TRADE SURPLUS IS THE MAIN FACTOR BEHIND THE YEN'S EXPLOSIVE RISE COMPANIES WHO SELL THEIR PRODUCTS OVERSEAS NEED TO CONVERT REVENUE IN FOREIGN CURRENCIES IN ORDER TO PAY JAPANESE EMPLOYEES AND STOCKHOLDERS BECAUSE JAPAN SELLS MORE OVERSEAS THAN IT BUYS FROM ABROAD A SURPLUS OF OTHER CURRENCIES DEVELOPS AND ITS HOLDERS BID UP THE VALUE OF THE YEN FURTHERMORE THE CLINTON ADMINISTRATION REPEATEDLY HAS ENDORSED A STRONG YEN AS A MEANS FOR CONTAINING JAPAN'S TRADE SURPLUS BUT THE RISING YEN HAS HIT CORPORATE JAPAN HARD EXPORTDEPENDENT COMPANIES HAVE ALREADY BEGUN TO ANNOUNCE LOSSES AS JAPANESE PRODUCTS BECOME PROHIBITIVELY EXPENSIVE OVERSEAS THE NEW GOVERNMENT OF PRIME MINISTER MORIHIRO HOSOKAWA IS UNDER SUBSTANTIAL PRESSURE FROM SUCH COMPANIES TO SOMEHOW LOWER THE YEN'S VALUE JACK GRIFFIN AN ASSISTANT VICE PRESIDENT AT FUJI BANK IN NEW YORK SAID HE DOUBTED THURSDAY'S MEETING WOULD PRODUCE THE RADICAL MOVES TO CUT THE TRADE SURPLUS THAT SOME INVESTORS ARE LOOKING FOR THERE WILL BE AN ATTEMPT BY THE JAPANESE TO COME UP WITH SOMETHING BECAUSE THEY HAVE TO DO SOMETHING MR GRIFFIN SAID BUT TO COME UP WITH DRASTIC CHANGES IS NOT IN THEIR CHARACTER WHATEVER COMES OUT OF THE MEETING MR GRIFFIN SAID MUST BE SUFFICIENT TO PERSUADE US OFFICIALS THAT JAPAN IS MAKING A GENUINE EFFORT TO LIMIT ITS SURPLUS THE YEN'S APPRECIATION WON'T STOP HE SAID UNTIL THE US MAKES A CLEAR STATEMENT SAYING THE DOLLAR HAS WEAKENED ENOUGH THE DOLLAR RALLIED ABOVE 102 YEN ON OPTIMISM ABOUT THE THURSDAY MEETING BUT LATER FADED AND ULTIMATELY ENDED LOWER ON THE DAY THE AUSTRALIAN DOLLAR MEANWHILE WAS MUCH LOWER AFTER TUESDAY'S ANNUAL BUDGET STATEMENT TO PARLIAMENT BY TREASURER JOHN DAWKINS THE CURRENCY CLOSED AROUND 6731 US CENTS COMPARED WITH 68 CENTS LATE MONDAY TRADERS SAID MR DAWKINS'S PREDICTION THAT INFLATION WOULD RUN AT 35 IN THE FISCAL YEAR ENDING JUNE 30 1994 WAS POORLY RECEIVED BY THE MARKET WHICH HAD BEEN EXPECTING A FORECAST OF ABOUT 25 THE INFLATION SURPRISE CAUSED A SELLOFF IN THE BOND MARKET MANY INVESTORS BUY THE AUSTRALIAN CURRENCY TO ACCESS AUSTRALIAN BONDS 9308180016 930818 BUSINESS BRIEF GOODYEAR TIRE & RUBBER CO PIPELINE UNIT SIGNS CONTRACTS WITH SEVERAL OIL PRODUCERS GOODYEAR TIRE & RUBBER CO SAID ITS ALL AMERICAN PIPELINE CO UNIT SIGNED LONGTERM CONTRACTS WITH SEVERAL OIL PRODUCERS THAT SHOULD PUSH THE UNIT INTO THE BLACK THE AKRON OHIO TIRE MAKER SAID AGREEMENTS WERE REACHED WITH MAJOR PRODUCERS IN THE POINT ARGUELLO OIL FIELD OFF THE COAST OF CALIFORNIA A GROUP THAT INCLUDES EXXON CORP CHEVRON CORP AND TEXACO INC THE CONTRACTS BEGIN BY JANUARY 1996 AND RUN THROUGH AUGUST 2007 TERMS WEREN'T RELEASED BUT GOODYEAR CONFIRMED THAT THE AGREEMENTS SHOULD PRODUCE AN OPERATING PROFIT AT THE UNIT WHICH OPERATES A NETWORK OF PIPELINES ALL AMERICAN LOST A COMBINED 1208 MILLION FROM 1990 THROUGH 1992 ON AN OPERATING BASIS BUT THE AMOUNT OF OIL SHIPPED THROUGH IT HAS GROWN 56 IN THE SAME PERIOD TO 164000 BARRELS A DAY FROM 105000 THE NEW CONTRACTS SHOULD PUSH THAT AMOUNT TO MORE THAN 300000 BARRELS A DAY 9308180015 930818 POLITICS & POLICY PROGRAM TO FREE CERTAIN ELDERLY INMATES DRAWS INTEREST AS WAY TO HELP UNCLOG CROWDED PRISONS BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL LORTON VA CLYDE MCCLELLAN A 74YEAROLD DOUBLE AMPUTEE WORRIED FOR YEARS THAT HE WOULD DIE IN PRISON AFFLICTED WITH CHRONIC HEART PROBLEMS AND GLAUCOMA HE PASSED HIS TIME CLEANING BATHROOMS AND WATCHING THE PRICE IS RIGHT ON A TINY TELEVISION SET IN HIS PRISON ROOM BUT THIS WEEK MR MCCLELLAN WHO WAS CONVICTED IN 1984 OF SECONDDEGREE MURDER AFTER A FATAL FIGHT BECOMES A FREE MAN HAVING WON PAROLE HE SAYS I'LL TRY TO LIVE A DECENT LIFE THE OCCASION IS CAUSE FOR CELEBRATION FOR JONATHAN TURLEY AN ENERGETIC 32YEAROLD LAW PROFESSOR IN WASHINGTON WITH A NOVEL NOTION TO HELP UNCLOG THE NATION'S CROWDED PRISONS FREEING ELDERLY PRISONERS WHO NO LONGER SEEM TO POSE A THREAT TO SOCIETY MR TURLEY'S NONPROFIT GROUP THE PROJECT FOR OLDER PRISONERS TOOK MR MCCLELLAN'S CASE TO THE PAROLE BOARD OF THE DISTRICT OF COLUMBIA WHICH RUNS THE LORTON PRISON TO DATE POPS HAS HELPED FREE ABOUT TWO DOZEN SUCH INMATES AND OFFERED ADVICE TO DOZENS OF OTHERS IT HAS AN UNIMPEACHABLE RECORD WHERE IT COUNTS MOST NOT ONE RELEASED PRISONER HAS BEEN REARRESTED AND THOUGH THE NUMBER OF POPS PAROLEES IS SMALL THE PROJECT IS DRAWING INTENSE INTEREST NATIONALLY FROM CASHSTRAPPED PRISON SYSTEMS FACED WITH RISING NUMBERS OF GRAYING AND INCREASINGLY COSTLY CONVICTS IT'S BEEN VERY EFFECTIVE AT BRINGING TO ATTENTION SOME PEOPLE WHO OTHERWISE MAY BE LOST IN THE CRACKS SAYS RICHARD STALDER A LOUISIANA CORRECTIONS OFFICIAL RELEASING PRISONERS AT ANY AGE HOWEVER RUNS UP AGAINST WIDESPREAD POLITICAL AND PUBLIC DEMAND FOR HARSHER SENTENCES FAMILIES OF VICTIMS ALSO ARGUE THAT SOME CRIMES ARE SO HEINOUS THAT PAROLE SHOULD NEVER BE GRANTED EVEN TO MODEL PRISONERS BEATEN DOWN BY AGE AND INFIRMITY SENIOR CITIZEN DISCOUNTS DON'T GO OVER WELL IN THE VICTIMS' RIGHTS COMMUNITY SAYS ANNE SEYMOUR OF THE NATIONAL VICTIM CENTER IN ARLINGTON VA AND WHILE RECIDIVISM RATES DO DROP MARKEDLY FOR OLDER PRISONERS CRIMES COMMITTED BY RECIDIVIST OLDSTERS TEND TO BE AMONG THE MOST SERIOUS SAYS LAWRENCE GREENFELD ACTING DIRECTOR OF THE JUSTICE DEPARTMENT'S BUREAU OF JUSTICE STATISTICS ULTIMATELY OF COURSE THE DECISION TO RELEASE PRISONERS RESTS WITH PAROLE BOARDS BUT WITH MANY OF THEM GROANING UNDER HUGE LOADS VIRGINIA LAST YEAR HANDLED MORE THAN 15000 PAROLE CASES SOME PAROLE OFFICIALS SEE POPS AS A USEFUL ALLY RELEASING AGING PRISONERS IS A VERY GOOD IDEA BECAUSE IT CREATES MUCHNEEDED BED SPACE FOR YOUNG DANGEROUS OFFENDERS SAYS EILEEN NAGEL A REAGAN APPOINTEE TO THE US SENTENCING COMMISSION NATIONWIDE SINCE 1986 THE NUMBER OF STATE AND FEDERAL PRISONERS OVER THE AGE OF 55 HAS DOUBLED TO 24000 WHILE IT COSTS ABOUT 15500 ANNUALLY TO KEEP THE AVERAGE PRISONER IN JAIL THE TAB CAN RUN TWO TO THREE TIMES THAT FOR AGING INMATES WITH MEDICAL PROBLEMS BY CONTRAST A BAREBONES NURSING HOME COSTS ABOUT 7200 ANNUALLY ATOP THAT THE NATION'S PRISON POPULATION IS EXPECTED TO GROW GRAYER IN PART BECAUSE OF A DECADELONG TREND TOWARD LONGER MANDATORY SENTENCES FOR CERTAIN KINDS OF CRIMES BY THE YEAR 2005 ABOUT 16 OF ALL FEDERAL INMATES WILL BE MORE THAN 50 YEARS OLD ACCORDING TO THE FEDERAL BUREAU OF PRISONS MR TURLEY BUILDS HIS CASE FOR OLDER PRISONERS ON RECIDIVISM STATISTICS SHOWING THAT RATES DROP SHARPLY FOR OLDER OFFENDERS CONVICTS OVER AGE 45 RETURN TO JAIL WITHIN THREE YEARS OF RELEASE AT ONLY HALF THE RATE OF YOUNGER ONES ACCORDING TO THE FEDERAL GOVERNMENT I'M NOT THE AMERICAN CIVIL LIBERTIES UNION I'M NOT TRYING TO GET EVERYBODY OUT MR TURLEY SAYS BUT WE CAN PREDICT FUTURE BEHAVIOR BASED ON RECIDIVISM STATISTICS AND WE CAN USE IT IN DEALING WITH THE BURGEONING PRISON POPULATION UNDER POPS IN FACT ONLY ABOUT 10 OF THOSE WHO APPLY ARE RECOMMENDED FOR PAROLE BY MR TURLEY AND THE VOLUNTEER LAW STUDENTS WHO OPERATE THE PROGRAM OUT OF OFFICES AT GEORGE WASHINGTON UNIVERSITY IN WASHINGTON AND TULANE UNIVERSITY IN NEW ORLEANS FOR STARTERS THE PRISONERS MUST HAVE GOOD PRISON RECORDS AND EVEN THEN THEY ARE SUBJECTED TO RIGOROUS RISKASSESSMENT TESTS BASED IN PART ON A FEDERAL MODEL THAT SO FAR HAS SHOWN ITS WORTH IN PREDICTING WHICH ELDERLY INMATES ARE MOST LIKELY TO STAY OUT OF TROUBLE NOT ALL WHO PASS MUSTER ON THE POPS EVALUATION MAKE IT INTO THE PROGRAM MR TURLEY DECLINED FOR EXAMPLE TO TAKE THE CASE OF HARVEY EDWARDS AN AGING WHEELCHAIRBOUND LOUISIANA INMATE HIS REPEAT CONVICTIONS FOR SEX CRIMES AGAINST CHILDREN MADE HIM A POOR CANDIDATE FOR RELEASE DESPITE AN OTHERWISE FAVORABLE EVALUATION STILL POPS LAWYERS OFTEN TRY TO WIN PRISON CONCESSIONS FOR SUCH INMATES MR TURLEY SUCCESSFULLY LOBBIED LOUISIANA PRISON OFFICIALS TO MOVE MR EDWARDS TO LESSRESTRICTIVE SURROUNDINGS MR EDWARDS HAS SINCE DIED AND SOMETIMES MR TURLEY IS INFLUENCED BY THE ANGER AND WORRY OF RELATIVES OF VICTIMS LAST YEAR HE WAS CONSIDERING REPRESENTING A 59YEAROLD INMATE AT STAUNTON CORRECTIONAL CENTER IN STAUNTON VA THE MAN WAS IN DECLINING HEALTH HAD ALREADY SPENT 34 YEARS IN PRISON HAD A CLEAN PRISON RECORD AND SCORED WELL ON EVALUATION TESTS BUT THEN MR TURLEY TRACKED DOWN VIOLA YELTON WHO WAS 21 WHEN THE INMATE RAPED AND MURDERED HER FOURYEAROLD SISTER IN THE TINY VIRGINIA TOWN OF COUNCIL FOR MRS YELTON TO WHOM THE CRIME STILL IS FRESH AND PAINFUL THE PRISONER'S RELEASE WAS UNTHINKABLE I DON'T WANT ANY POSSIBILITY OF HIS EVER GETTING OUT SHE RECALLS TELLING THE POPS CASE WORKER MR TURLEY DECIDED AGAINST RECOMMENDING THE PRISONER FOR PAROLE MRS YELTON SAYS SHE APPRECIATES MR TURLEY'S CONSIDERATION FOR HER VIEWS BUT SHE ALSO THINKS POPS IS WRONG TO REPRESENT VIOLENT OFFENDERS OF ANY KIND THAT MAN DIDN'T GIVE MY SISTER A CHANCE TO GROW UP AND EXPERIENCE LIFE IT NEARLY KILLED MY PARENTS AND I ALMOST HAD A NERVOUS BREAKDOWN NO MATTER HOW MANY YEARS YOU LIVE YOU NEVER GET OVER IT MR TURLEY IS NO STRANGER TO THE CONTROVERSY THAT UNCONVENTIONAL IDEAS SOMETIMES STIR UP HE CURRENTLY OPERATES AN ENVIRONMENTAL CRIMES PROJECT WHOSE GOAL IS TO NEEDLE GOVERNMENT AGENCIES INTO TAKING A TOUGHER STANCE AGAINST CORPORATE POLLUTERS HE STARTED THE POPS PROGRAM WHILE HE WAS A PROFESSOR AT TULANE QUENTON BROWN AN ANGOLA LA STATE PENITENTIARY INMATE BECAME POPS' FIRST PAROLEE THREE YEARS AGO WITH AN IQ OF 51 MR BROWN THEN IN HIS SIXTIES HAD SERVED 18 YEARS OF A 30YEAR SENTENCE FOR STEALING A PIE AND ABOUT 100 DOZENS OF OLDER INMATES BEGAN ASKING MR TURLEY FOR HELP IN GETTING OUT ONE OF THE BIG ISSUES FOR THE PRISONERS THEMSELVES IS PREDATORY YOUNGER PRISONERS YOU LIVE CONSTANTLY IN FEAR OF YOUR LIFE FROM THE OTHER INMATES FOR THAT MATTER THE GUARDS TOO SAYS MR BROWN WHO IS NOW 70 SINCE 1990 HE HAS LIVED FREE AND WITHOUT INCIDENT IN A COTTAGE IN TAMPA FLA WHERE HE DOES YARDWORK POPS HAS SINCE EXPANDED TO VIRGINIA AS WELL AS WASHINGTON DC AND MR TURLEY PLANS TO BEGIN WORKING IN MARYLAND AND ILLINOIS SOON A NUMBER OF OTHER STATES INCLUDING CALIFORNIA FLORIDA AND NEVADA HAVE EXPRESSED INTEREST IN COOPERATING WITH POPS WORKERS ON THE POSSIBLE RELEASE OF AGING PRISONERS BOTH LOUISIANA AND THE DISTRICT OF COLUMBIA AT POPS' URGING HAVE ADOPTED PAROLE LAWS THAT GIVE SPECIAL CONSIDERATION TO OLDER PRISONERS WITH MEDICAL PROBLEMS MR MCCLELLAN IS THE FIRST PRISONER TO BE RELEASED UNDER THE DISTRICT'S NEW LAW MARYLAND AND VIRGINIA ARE LIKELY TO CONSIDER SIMILAR LAWS THIS FALL IN MANY CASES HOWEVER POPS PRISONERS ARE RELEASED UNDER REGULAR PAROLE LAWS OFTEN AFTER SERVING LONGERTHANAVERAGE SENTENCES TWO YEARS AGO MR TURLEY PROMISED TO HELP NOAH WADE THEN A PRISONER IN THE MARION VA CORRECTIONAL CENTER MR WADE HAS HEART AND HEARING PROBLEMS AND ARTHRITIS HE WAS IMPRISONED IN 1944 AS A 20YEAROLD FOR STATUTORY RAPE EIGHT YEARS LATER HE WAS SENTENCED TO LIFE FOR KILLING A FELLOW INMATE DURING A KNIFE FIGHT HE WAS SO CONVINCED THAT HE WOULD NEVER BE FREED THAT IN THE LATE 1980S HE TRIED TO COMMIT SUICIDE TODAY THE 69YEAROLD MR WADE HAS HIS FREEDOM TRADING A JOB MAKING LICENSE PLATES IN PRISON FOR THE RELATIVE COMFORT OF A NURSING HOME THAT POPS FOUND FOR HIM UPON HIS RELEASE LAST AUGUST HIS GUARDS THREW HIM A PARTY WITHOUT THE POPS PLAN THE LIKELIHOOD IS THAT MR WADE WOULD STILL BE IN PRISON SAYS CLARENCE JACKSON JR CHAIRMAN OF THE VIRGINIA PAROLE BOARD THERE WAS NO REAL ALTERNATIVE FOR HIM 9308180013 930818 DIVIDEND NEWS MICROCHIP TECHNOLOGY INC MICROCHIP TECHNOLOGY INC A PHOENIX MAKER OF SEMICONDUCTOREMBEDDED CONTROL PRODUCTS ANNOUNCED A 2FOR1 STOCK SPLIT EFFECTIVE FOR STOCK OF RECORD AFTER THE MARKET CLOSES ON AUG 9308180012 930818 MARKETING & MEDIA DISNEY CONSIDERS FESTIVAL LINKED TO COLLEGE FOOTBALL ANAHEIM CALIF WALT DISNEY CO IS PREPARING A PROPOSAL FOR A BIG ARTS AND ENTERTAINMENT FESTIVAL BUILT AROUND A COLLEGE NATIONALCHAMPIONSHIP FOOTBALL GAME THE PLAN ENVISIONS THE FIRST SUCH EVENT SHORTLY BEFORE THE SUPER BOWL IN JANUARY 1995 OR 1996 DISNEY HAS QUIETLY INVITED ABOUT 60 PEOPLE TO A MEETING TOMORROW AT THE DISNEYLAND HOTEL TO DISCUSS THE IDEA SAID GAIL PEDERSON AN EXECUTIVE FOR THE ORANGE COUNTY SPORTS ASSOCIATION A NONPROFIT ORGANIZATION INVOLVED IN LOCAL SPORTS EVENTS A SPOKESMAN AT THE DISNEYLAND THEME PARK CONFIRMED THE MEETING BUT HE DECLINED TO DISCUSS DETAILS SOME OF WHICH WERE FIRST REPORTED IN THE ORANGE COUNTY REGISTER OFFICIALS AT THE ENTERTAINMENT COMPANY'S BURBANK HEADQUARTERS REFERRED CALLS TO DISNEYLAND THE FESTIVAL A MIX OF ATHLETICS AND ACADEMIA COULD BE AN ECONOMIC BOOST FOR ORANGE COUNTY IN WHAT IS NORMALLY A SLOW MONTH FOR TOURISM SAID ESMAEL ADIBI DIRECTOR OF THE CENTER FOR ECONOMIC RESEARCH AT CHAPMAN UNIVERSITY IN ORANGE DISNEY HASN'T DISCUSSED ITS CONCEPT WITH THE NATIONAL COLLEGIATE ATHLETIC ASSOCIATION SAID NCAA SPOKESMAN JIM MARSHIONY 9308180011 930818 WHO'S NEWS CONCORD HOLDING CORP CONCORD HOLDING CORP NEW YORK RICHARD STIERWALT 38YEAROLD CHIEF EXECUTIVE OFFICER OF THIS ADMINISTRATOR OF BANKRELATED MUTUAL FUNDS WAS GIVEN THE ADDITIONAL TITLE OF CHAIRMAN A NEW POSITION WILLIAM BLUNDIN 54 WAS NAMED VICE CHAIRMAN HIS TITLE OF PRESIDENT WAS RETIRED CONCORD ADMINISTERS 30 BILLION IN MUTUAL FUND ASSETS 9308180010 930818 WHAT'S NEWS WORLDWIDE NASA SELECTED BOEING AS THE PRIME CONTRACTOR FOR ITS SPACE STATION THE SPACE AGENCY MOVED TO STREAMLINE MANAGEMENT OF THE OFTCRITICIZED 22 BILLION PROJECT SELECTING BOEING AND THE HOUSTON SPACE CENTER AS ITS OVERSEERS NASA'S DECISION ENDED A FIERCE DOMESTIC BATTLE FOR THE PROJECT THE CONSOLIDATION ANNOUNCEMENT WAS GOOD NEWS FOR HOUSTON WHICH ALREADY IS HOME TO NASA'S MANNEDSPACEFLIGHT PROGRAM AND FOR SEATTLEBASED BOEING WHICH HAS BEEN HURT BY POSTCOLD WAR DEFENSE CUTBACKS US OFFICIALS SAID THEY ARE CONSIDERING WHETHER TO GIVE THE RUSSIANS A KEY ROLE IN THE REDESIGNED SPACE STATION IN ORDER TO SAVE MONEY BOSNIA PEACE TALKS STALLED AND A SARAJEVO SUBURB WAS SHELLED THE MUSLIM PRESIDENT OF BOSNIA CAST DOUBT ON MONDAY'S AGREEMENT FOR UN ADMINISTRATION OF POSTWAR SARAJEVO AND SAID THERE HAD BEEN NO PROGRESS IN GENEVA TALKS ON THE BORDERS OF THREE NEW ETHNIC STATES THE BOSNIAN SERB LEADER SAID THE TALKS ARE STALLED BECAUSE OF DIFFERENCES OVER CONTROL OF MUSLIM ENCLAVES IN EASTERN BOSNIA THREE MORTAR SHELLS HIT THE SARAJEVO SUBURB OF DOBRINJA HOURS AFTER A VISIT BY US AMBASSADOR JAKOVIC INJURING 13 PEOPLE UN OFFICIALS ANNOUNCED THAT THEY HAVE RECEIVED OFFERS FROM 17 COUNTRIES TO PROVIDE MEDICAL TREATMENT FOR 1250 SICK AND WOUNDED BOSNIANS SUDAN IS TO BE ADDED TODAY TO A US LIST OF OUTLAW STATES THAT SUPPORT TERRORIST GROUPS SECRETARY OF STATE CHRISTOPHER SIGNED AN ORDER LAST WEEKEND CITING SUDAN'S ISLAMIC GOVERNMENT AS A SPONSOR OF TERRORISM FOR HARBORING RADICAL GROUPS US OFFICIALS SAID SUDAN IS TO BE NOTIFIED OF THE ACTION THIS MORNING FLUORIDE IN DRINKING WATER DOESN'T LEAD TO CANCER KIDNEY FAILURE OR BONE DISEASE ACCORDING TO A NATIONAL RESEARCH COUNCIL REPORT HOWEVER THE COUNCIL CALLED FOR MORE RESEARCH ON FLUORIDE EXPOSURE RECOMMENDING THAT THE CURRENT ALLOWABLE LEVELS BE MAINTAINED AS AN INTERIM STANDARD UNTIL RESEARCH IS COMPLETED PATIENTS IN A STUDY RATED THE CARE THEY RECEIVED FROM DOCTORS IN SMALL PRACTICES MUCH HIGHER THAN THAT PROVIDED IN LARGE GROUP PRACTICES HMOS AND SIMILAR BIG PREPAID PLANS WERE RATED LOWER THAN FEEFORSERVICE PLANS RESEARCHERS SAID THE FINDINGS RAISE A CAUTION FLAG FOR CLINTON'S HEALTH PLAN RETIRED PATHOLOGIST KEVORKIAN BECAME THE FIRST PERSON CHARGED WITH VIOLATING MICHIGAN'S SIXMONTHOLD SUICIDE LAW FOR HELPING A MAN KILL HIMSELF ON AUG 4 KEVORKIAN WHO HAS BEEN PRESENT AT 17 SUICIDES WAS RELEASED ON 100000 BOND THE NEW LAW MAKES ASSISTED SUICIDE PUNISHABLE BY UP TO FOUR YEARS IN PRISON AND A 2000 FINE RUSSIA'S PRIME MINISTER RULED OUT THE RETURN OF THE DISPUTED KURILE ISLANDS TO JAPAN SAYING THEIR SOVEREIGNTY WASN'T EVEN AN ISSUE CHERNOMYRDIN ON A VISIT TO ONE OF THE ISLANDS WAS QUOTED AS SAYING WE AREN'T SPEAKING TO ANYONE ON THIS SUBJECT ANY LONGER THE ISLANDS WERE SEIZED BY SOVIET TROOPS AFTER WORLD WAR II NIGERIA'S MILITARY LEADER CONFOUNDED HIS COUNTRYMEN BY OFFERING TO RESIGN AS RULER ON THE CONDITION THAT THE DECISION COME FROM SOLDIERS UNDER HIS COMMAND CIVIL RIGHTS GROUPS SAID THE OFFER BY GEN BABANGIDA WAS JUST A SMOKESCREEN TACTIC HE HAS BEEN TRYING TO DEFUSE PROTESTS OVER HIS ANNULMENT OF RESULTS FROM A JUNE PRESIDENTIAL VOTE PROIRANIAN REBELS LAUNCHED THEIR FIERCEST ATTACK AGAINST ISRAEL'S SECURITY ZONE IN SOUTH LEBANON SINCE LAST MONTH WHEN A TRUCE HALTED ISRAELI ATTACKS ON LEBANON THERE WERE NO REPORTS OF CASUALTIES THE HEZBOLLAH GUERRILLAS FIRED ROCKETS AND MORTAR BOMBS AT POSITIONS OF THE SOUTH LEBANON ARMY WHICH IS ALLIED WITH ISRAEL KING HUSSEIN UNVEILED NEW RULES FOR JORDAN'S FIRST MULTIPARTY VOTE SINCE 1956 SET FOR NOV 8 DESPITE PROTESTS FROM LAWMAKERS WHO SAID THE REFORMS SHOULD HAVE BEEN CLEARED BY THEM THE RULES GIVE EACH VOTER THE RIGHT TO SELECT ONE PARLIAMENT CANDIDATE PREVIOUSLY PEOPLE COULD CAST AS MANY VOTES AS THERE WERE SEATS IN THEIR CONSTITUENCIES POLICE IN HAITI BROKE UP AN ATTEMPT TO DISPLAY BANNERS AND PHOTOS OF OUSTED PRESIDENT ARISTIDE DURING A RALLY NEAR THE CAPITAL A PRIEST AND AT LEAST TWO OTHER PEOPLE WERE DETAINED PROARISTIDE RALLIES HAVE BEEN STIFLED SINCE THE COUP THAT OUSTED HIM BUT HE IS DUE TO BE RESTORED TO POWER BY OCT 30 9308180009 930818 WORLD MARKETS TOKYO PRICES FALL AS HOPES FOR RATE CUT FADE LONDON MARKET IS BUOYED BY BUYING OF FUTURES A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS FELL VICTIM TO PROFITTAKING TUESDAY AFTER THE NIKKEI INDEX SURPASSED 21000 FOR THE FIRST TIME IN TWO MONTHS IN THE FIRST HOUR OF TRADING LONDON SHARE PRICES ROSE VIGOROUSLY AS A LATE BUYER OF FUTURES CONTRACTS SHOOK UP A QUIET CASH MARKET WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11218 UP 017 REFLECTING INCREASES IN AMERICAN ASIA/PACIFIC AND EUROPEAN MARKETS TOBACCO STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 7566 UP 184 OR 25 WITH AMERICAN BRANDS OF THE US POSTING A 59 GAIN IN ITS LOCAL CURRENCY FOOTWEAR STOCKS TRAILED AT 8781 DOWN 104 OR 12 WITH REEBOK INTERNATIONAL OF THE US SLIDING 21 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH GAINED 15632 POINTS MONDAY FELL 5951 TO 2084198 ON WEDNESDAY THE NIKKEI ROSE 1631 POINTS TO CLOSE THE MORNING SESSION AT 2085829 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 320 MILLION SHARES UP FROM 2346 MILLION SHARES ON MONDAY LOSERS OUTNUMBERED GAINERS 648309 THE TOKYO STOCK PRICE INDEX OR TOPIX OF FIRSTSECTION ISSUES WHICH ROSE 496 POINTS MONDAY LOST 629 TO 168175 SELLING WAS PROMPTED BY THE YEN'S CONTINUED RISE TO HISTORIC HIGHS AGAINST THE DOLLAR AND A LACK OF SIGNALS THAT INVESTORS' HOPES FOR A CUT IN JAPANESE INTEREST RATES WILL BE SATISFIED SOON DEALERS AND ARBITRAGERS HAD BID UP THE MARKET MONDAY ON EXPECTATIONS THAT THE BANK OF JAPAN WILL CUT RATES SOON BUT FEW INVESTORS OPTED TO FOLLOW SUIT TUESDAY OIL SHARES WERE THE MOST HEAVILY TRADED SOME ISSUES DROPPED ON PROFITTAKING AFTER THE SECTOR ADVANCED ON EXPECTATIONS THAT A STRONGER YEN WOULD ALLOW THE INDUSTRY TO BUY RAW MATERIALS MORE CHEAPLY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100 INDEX GAINED 167 POINTS TO 3025 ITS HIGH FOR THE DAY THE FT 30 INDEX ROSE 186 TO 23662 VOLUME TOTALED 6384 MILLION SHARES COMPARED WITH 605 MILLION THE PREVIOUS DAY WORD WENT AROUND THE MARKET LATE THAT A US BUYER WAS AGGRESSIVELY BUYING BRITISH STOCKINDEX FUTURES CONTRACTS ACCOUNTING FOR 15 OF THE DAY'S TOTAL THE FUTURES MARKET SOARED AND THE CASH MARKET FOLLOWED CLOSING AT ITS HIGH AFTER A MERE 16POINT GAIN ONLY 90 MINUTES EARLIER ASIDE FROM THE LATE FLURRY INVESTORS WERE MOSTLY HOLDING BACK YESTERDAY CAUTIOUSLY AWAITING TODAY'S RELEASE OF BRITAIN'S JULY RETAIL INFLATION DATA OTHER EUROPEAN MARKETS WERE MIXED IN FRANKFURT STOCKS EASED SLIGHTLY DESPITE AN EARLY BOUNCE THE DAX 30STOCK INDEX OF BLUECHIPS LOST 202 POINTS TO 191017 THE INDEX HAD SURGED AFTER SURPASSING THE 1900 LEVEL BUT WAS PULLED BACK BY FUNDAMENTAL FACTORS SURROUNDING CERTAIN BLUECHIP STOCKS IN PARIS STOCKS WEAKENED IN THIN POSTHOLIDAY TRADING AS PLAYERS LIGHTENED POSITIONS IN THE ABSENCE OF A SIGNIFICANT INTEREST RATE CUT FROM THE BANK OF FRANCE THE MARKET LARGELY SHRUGGED OFF THE THIRD CUT IN EIGHT DAYS IN THE CENTRAL BANK'S 24HOUR LENDING RATE ALTHOUGH THE BANK ON TUESDAY TRIMMED THE RATE TO 875 FROM 925 IT LEFT THE MORE IMPORTANT INTERVENTION RATE AT 675 AND THE 5DAY TO 10DAY REPO RATE AT 10 IN MILAN PRICES JUMPED 26 AFTER A BRIEF PAUSE FOR PROFITTAKING BUYING WAS SUPPORTED BY HOPES OF A CUT IN ITALIAN INTEREST RATES ALTHOUGH THE BANK OF ITALY IS EXPECTED TO WAIT FOR CUTS BY OTHER EUROPEAN COUNTRIES BEFORE MAKING A MOVE IN ADDITION THE START OF THE SEPTEMBER TRADING CYCLE TUESDAY BOOSTED SENTIMENT THE GAINS WERE LED BY INSURANCE AND TELECOMMUNICATIONS STOCKS IN MADRID STOCKS SURGED 2 TO A NEW HIGH FOR THE YEAR IN HEAVY TRADING AS OVERSEAS INVESTORS BOUGHT UP BLUECHIP SHARES OPTIMISM FOR REDUCED INTEREST RATES CONTINUED TO PUSH UP THE CONSTRUCTION SECTOR STOCKHOLM SHARES CLIMBED 14 ON A RALLY AMONG BANKING STOCKS IN ZURICH STOCKS SLIPPED IN MOSTLY SLOW TRADING AMID NERVOUSNESS ABOUT BANK RESULTS AND SOME FUTURESRELATED TECHNICAL PRESSURE BANKING AND INSURANCE ISSUES WERE MOSTLY LOWER TRADERS CONTINUED TO ROTATE FUNDS AMONG THE SECTORS AND ISSUES MOST ASIAN AND PACIFIC MARKETS FINISHED WITH GAINS TUESDAY WITH A FEW SETTING RECORDS IN SYDNEY PRICES ROSE ACROSS THE BOARD TO FINISH AT A SIXYEAR HIGH THE GAINS WERE LED BY BANKING MEDIA AND GOLD STOCKS AND REFLECTED INVESTORS' FOCUS ON EQUITIES OVER BONDS AND CASH AS WELL AS THE FIRMING IN GOLD PRICES IN SINGAPORE STOCKS ROSE TO A RECORD FOR THE THIRD STRAIGHT SESSION ON A REBOUND IN BANK SHARES AND SMALL GAINS AMONG BLUE CHIPS HONG KONG SHARES ALSO CLIMBED TO ANOTHER RECORD DEFYING PROFITTAKING PRESSURE IN BRISK TRADING OVERSEAS FUNDS LED THE BUYING FOCUSING ON BANK AND UTILITY ISSUES ON EXPECTATIONS OF FINANCIAL RESULTS OF BLUECHIP COMPANIES IN TAIPEI PRICES EDGED UP IN THIN TRADING ON A LATE RALLY IN SPECULATIVE SHARES BUT POLITICAL JITTERS CONCERNING THE RULING NATIONALIST PARTY'S CONGRESS RUNNING THROUGH SUNDAY TEMPERED THE GAINS IN SEOUL EQUITIES SLIPPED IN ERRATIC TRADING AS MANY INSTITUTIONAL INVESTORS STUCK TO SIDELINES FOLLOWING THE MARKET'S SURGE MONDAY IN MANILA STOCKS ADVANCED IN MODERATE VOLUME HELPED BY SELECTIVE BUYING OF BLUECHIP ISSUES IN WELLINGTON STOCKS JUMPED 15 IN BUSY TRADING THE MARKET'S ADVANCE WAS DUE PARTICULARLY TO GAINS IN SELECTED BLUECHIPS INCLUDING AIRLINE AND TELECOMMUNICATION STOCKS AMONG CORPORATE DEVELOPMENTS IN LONDON HANSON LOST 3 PENCE TO 252 1/2 PENCE 376 THE CONGLOMERATE'S PRETAX PROFIT FELL 37 TO 256 MILLION 3816 MILLION IN ITS THIRD QUARTER ENDED JUNE 30 AS A US COAL MINERS' STRIKE CUT PROFITS AT ITS PEABODY SUBSIDIARY THE PROFIT WAS IN LINE WITH ANALYSTS' FORECASTS IN AMSTERDAM HUNTER DOUGLAS SANK 37 GUILDERS OR 59 TO 5920 GUILDERS 3118 THE WINDOWCOVERING AND ALUMINUM MAKER'S FIRSTHALF NET INCOME ROSE 16 TO 269 MILLION GUILDERS 142 MILLION BUT FELL SHORT OF ANALYSTS' EXPECTATIONS IN PARIS EURO DISNEY TUMBLED 445 FRENCH FRANCS OR 68 TO 608 FRANCS 1019 THE THEME PARK OPERATOR DENIED A BRITISH NEWSPAPER REPORT THAT ITS US PARENT WALT DISNEY IS CONSIDERING CLOSING THE PARK WHICH HAS POSTED HEAVY LOSSES HOWEVER A SPOKESWOMAN ACKNOWLEDGED THE POSSIBILITY THAT EURO DISNEY MIGHT BE TEMPORARILY SHUT DOWN DURING OFFPEAK MONTHS 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 9308180008 930818 INTERNATIONAL BRIEF DEN NORSKE BANK AS NORWEGIAN GROUP REVERSES '92 LOSS WITH 1STHALF PROFIT NORWAY'S LARGEST BANKING GROUP DEN NORSKE BANK AS SWUNG TO A PROFIT OF 204 MILLION KRONER 277 MILLION IN THE FIRST HALF FROM A NET LOSS OF 116 BILLION KRONER A YEAR EARLIER DNB WHICH IS STATEOWNED FOLLOWING A 1991 GOVERNMENT BAILOUT ATTRIBUTED THE IMPROVEMENT IN THE FIRST SIX MONTHS TO BETTER NET INTEREST INCOME COSTCUTTING MEASURES AND STRONG GAINS ON SECURITIES THE IMPROVEMENT IN PERFORMANCE PROVIDES A SOLID BASE FOR THE GRADUAL INCREASE OF PRIVATE CAPITAL IN THE BANK SAID DNB CHIEF EXECUTIVE FINN HVISTENDAHL IF DEVELOPMENTS IN THE NEXT FEW MONTHS BEAR OUT THE CURRENT TREND PREPARATIONS FOR PRIVATIZATION COULD BEGIN THIS AUTUMN HE SAID 9308180006 930818 CANON PRETAX PROFIT FELL 61 IN 1ST HALF TOTALING 153 MILLION SPECIAL TO THE WALL STREET JOURNAL TOKYO CANON INC REPORTED THAT UNCONSOLIDATED PRETAX PROFIT FOR THE FIRST HALF DROPPED 61 TO 1554 BILLION YEN 153 MILLION IN LARGE PART DUE TO EROSION OF OVERSEAS MARGINS BY THE RISE BY THE YEN SALES EDGED DOWN 26 TO 49391 BILLION YEN FROM 50734 BILLION YEN FOR THE FIRST HALF OF THIS YEAR THE DOLLAR AVERAGED 11461 YEN FOR THE CAMERA AND OPTICALS COMPANY A SPOKESMAN NOTED WHILE THAT WAS STRONGER THAN THE 110 YEN THAT CANON WAS EXPECTING FOR THE SIX MONTHS THE EXCHANGE RATE WAS 12 LOWER THAN WHAT THE COMPANY GOT IN THE YEAREARLIER HALF WHAT CANON GETS FOR ITS OVERSEAS PROFITS AFTER CONVERSION INTO YEN IS KEY FOR THE COMPANY AND REPRESENTATIVE OF THE SQUEEZE ON JAPAN'S EXPORTERS AS ALMOST 80 OF THE UNCONSOLIDATED OR PARENTONLY SALES IN THE LAST HALF TOOK PLACE OVERSEAS THE COMPANY SAID IT PLANS TO COPE WITH A YEN AS STRONG AS 100 TO THE DOLLAR WITH RECENT TRADING LEVELS NEARING THAT LEVEL BY TRANSFERRING OPERATIONS OVERSEAS AND TRYING TO DEVELOP NEW PRODUCTS JAPANESE GOVERNMENT OFFICIALS WORRY THAT MASSIVE RELOCATION OF PRODUCTION ABROAD AND THE IDLING PLANTS AND STAFF AT HOME WILL PROLONG AND COULD DEEPEN THE RECESSION FOR THE FULL YEAR CANON IS PREDICTING THAT PRETAX PROFIT WILL BE DOWN 51 AT 38 BILLION YEN WITH SALES HOLDING AT 106 TRILLION YEN ALTHOUGH CANON'S PRETAX PROFIT FOR THE FULL YEAR WOULD BE DOWN SHARPLY FROM LAST YEAR EVEN ACHIEVING THE FORECAST WOULD INVOLVE DOUBLING THE PROFIT FOR THE FIRST HALF CANON ALSO COUNTS ON A PICKUP IN THE US ECONOMY BUT THE COMPANY NOTES THAT EUROPEAN ECONOMIES AS WELL AS THAT OF JAPAN REMAIN WEAK 9308180005 930818 AIRTOURS TO BUY JETLINERS SEATTLE BOEING CO SAID AIRTOURS INTERNATIONAL AVIATION AN AIRLINE BASED IN MANCHESTER ENGLAND ORDERED TWO 767300 EXTENDEDRANGE JETLINERS FOR A TOTAL OF ABOUT 200 MILLION THE ORDER INCLUDES SPARE PARTS AND SUPPORT THE PLANES WHICH SEAT 326 WILL BE USED ON SERVICE BETWEEN THE UK AND ORLANDO FLA AIRTOURS ORDERED GENERAL ELECTRIC CO CF680C2 ENGINES FOR THE AIRCRAFT WHICH ARE TO BE DELIVERED IN THE SPRING OF 1994 BOEING SAID 9308180004 930818 WHO'S NEWS WHARF TAPS DEPUTY LI TO SUCCEED WOO AS OFFICIAL CHAIRMAN HONG KONG WHARF HOLDINGS LTD SAID ITS CHAIRMAN PETER WOO NEXT YEAR WILL ASSUME THE POST OF HONORARY CHAIRMAN MOVING DEPUTY CHAIRMAN GONZAGA LI INTO THE DRIVER'S SEAT AT ONE OF HONG KONG'S BIGGEST COMPANIES THE ANNOUNCEMENT MADE WITH THE RELEASE OF WHARF'S HALFYEAR EARNINGS WAS SEEN AS A FURTHER STEP TOWARD SEPARATING THE IDENTITIES OF WHARF AND ITS PARENT WORLD INTERNATIONAL HOLDINGS LTD WHICH OWNS 44 OF WHARF THE GROUP HAS BEEN CAMPAIGNING TO ESTABLISH A PRESENCE IN THE GLOBAL INVESTMENT ARENA MAKING REGULAR TRIPS TO EUROPE AND NORTH AMERICA TO INTRODUCE WHARF TO THE INVESTMENT COMMUNITIES THERE WHARF SAID IT EARNED 138 BILLION HONG KONG DOLLARS US178 MILLION IN THE FIRST SIX MONTHS OF THE YEAR A 44 INCREASE FROM THE HK9575 MILLION A YEAR EARLIER WHARF'S REVENUE IN THE FIRST SIX MONTHS ROSE NEARLY 30 TO HK253 BILLION FROM HK197 BILLION A YEAR EARLIER ABOUT HK478 MILLION OF THE PROFIT IN THE FIRST HALF CAME FROM PROPERTY SALES AT TWO OF THE COMPANY'S REALESTATE DEVELOPMENTS THE INTERNATIONAL BANK OF ASIA BUILDING IN HONG KONG'S CENTRAL BUSINESS DISTRICT AND NEW TECH CENTRE IN HONG KONG'S NEW TERRITORIES WHILE WHARF HAS HELD THAT ITS PROPERTY BUSINESS IS FOCUSED ON EARNING RENTAL INCOME RATHER THAN SALES EXECUTIVE DIRECTOR EDWARD CHENG SAID THE COMPANY MAY CONTINUE TO SELL OFF PROPERTY TO CONCENTRATE ON CORE DEVELOPMENT PROJECTS MANAGING DIRECTOR STEPHEN NG WHO HAS BEEN DEVELOPING WHARF'S CABLE TELEVISION BUSINESS WILL BECOME DEPUTY CHAIRMAN WHARF SAYS IT WILL LAUNCH EIGHT CABLE TELEVISION CHANNELS IN OCTOBER 9308180002 930818 BUSINESS BRIEF CHESAPEAKE CORP UNIVERSAL COS SUBSIDIARY TO BUY WOODTREATING UNIT CHESAPEAKE CORP OF RICHMOND VA SAID IT AGREED TO SELL ITS CHESAPEAKE WOOD TREATING CO UNIT TO FOCUS ON ITS TISSUE AND KRAFT PAPER PRODUCTS AND PACKAGING BUSINESSES UNIVERSAL FOREST PRODUCTS INC A WHOLESALER OF BUILDING MATERIALS AND A SUBSIDIARY OF CLOSELY HELD UNIVERSAL COS OF GRAND RAPIDS MICH WILL TAKE OVER FIVE CHESAPEAKE WOOD FACILITIES TERMS WEREN'T DISCLOSED AS A RESULT AN AGREEMENT TO SELL THREE OF THE FACILITIES TO PRINCIPAL SHAREHOLDERS OF AC DUTTON LUMBER CORP OF KINGSTON NY HAS BEEN TERMINATED CHESAPEAKE WOOD HAD SALES OF ABOUT 100 MILLION IN 1992 OR ABOUT 10 OF THE PARENT'S SALES 9308180001 930818 MANAGING BY JOAN E RIGDON HEADHUNTERS SAY SOME CLIENTS ARE REJECTING CANDIDATES FROM TAINTED COMPANIES EVEN WHEN THEY KNOW THE SENIOR MANAGERS WEREN'T PERSONALLY INVOLVED IN THE SCANDAL PAUL R RAY & CO FORT WORTH TEXAS SAYS ONE OF ITS CLIENTS A NORTHEASTERN BANKING COMPANY REJECTED A SALOMON INC CANDIDATE THIS YEAR BECAUSE OF THE COMPANY'S TREASURYAUCTION BIDDING SCANDAL IN 1991 SALOMON SUBMITTED ILLEGAL BIDS IN THE NAMES OF UNSUSPECTING CLIENTS AND THEN FAILED TO REPORT THE MATTER TO REGULATORS FOR SEVERAL MONTHS THE SCANDAL RUBBED OFF ON ANYONE IN THE FIRM EVEN THOUGH THIS PARTICULAR CANDIDATE WAS NOT INVOLVED IN ANY WAY SAYS A SPOKESWOMAN FOR THE SEARCH FIRM THE NAME BANK OF CREDIT & COMMERCE INTERNATIONAL CONTROLLED BY BCCI HOLDINGS LUXEMBOURG SA IS ENOUGH TO MAKE MOST HEADHUNTERS SHUDDER SEVERAL SAY THEY WOULDN'T PRESENT CANDIDATES FROM BCCI EVEN IF THE CANDIDATES SWORE THEY DIDN'T KNOW ABOUT THE BANK'S SECRET AND ILLEGAL CONTROL OF THE WASHINGTON DC BANK FIRST AMERICAN BANKSHARES UNLESS A CLIENT TELLS US TO LOOK OUTSIDE THE ENVELOPE WE'RE GOING TO SHOW THEM THE BEST OF THE BEST AND THE BEST OF THE BEST USUALLY DON'T HAVE MAJOR ENTANGLEMENTS IN COMPANIES THAT HAVE BEEN IN THE SPOTLIGHT IN A NEGATIVE WAY SAYS MICHAEL BOXBERGER KORN/FERRY INTERNATIONAL'S MANAGING DIRECTOR FOR NORTH AMERICA IT'S GUILT BY ASSOCIATION IT'S UNFAIR AND IT'S UNFORTUNATE THAT'S LIFE TOO THE BEST WAY FOR EXECUTIVES TO AVOID BEING TAINTED IS TO CHANGE JOBS QUICKLY MANY HEADHUNTERS SAY STAYING IN A JOB TO SUPPORT A FAMILY OR PAY THE MORTGAGE ISN'T A GOOD EXCUSE I WOULDN'T FIND THAT ACCEPTABLE THOUGH I FIND IT UNDERSTANDABLE SAYS LEON A FARLEY HEAD OF LEON A FARLEY ASSOCIATES SAN FRANCISCO AND A MEMBER OF THE ETHICS COMMITTEE OF THE ASSOCIATION OF EXECUTIVE SEARCH CONSULTANTS YOU CAN NO MORE TAKE THE C' PLAYER ON THE MORAL SPECTRUM THAN YOU CAN ON THE PERFORMANCE SPECTRUM PRODUCT DEVELOPMENT TEAMS SAY THEY ARE MORE MOTIVATED BY A SENSE OF ACCOMPLISHMENT AND PRAISE FROM PEERS THAN BY CAREER ADVANCEMENT OR PAY IN A POLL BY KUCZMARSKI & ASSOCIATES CONSULTANTS IN CHICAGO NEWPRODUCT DEVELOPMENT TEAMS AT 77 FORTUNE 500 COMPANIES RATED A SENSE OF ACCOMPLISHMENT AS THE NO 1 FACTOR THAT MOTIVATES THEM PEER RECOGNITION RANKED SECOND IN DESCENDING ORDER THE NEXT HIGHEST MOTIVATORS WERE VISIBILITY TO TOP MANAGEMENT CAREER ADVANCEMENT COMPENSATION AND PEER PRESSURE PEOPLE ARE LOOKING FOR MEANING IN THEIR JOBS MORE THAN ANYTHING ELSE SAYS THOMAS KUCZMARSKI PRESIDENT OF THE FIRM BUT HE CAUTIONS AGAINST CONCLUDING PAY ISN'T IMPORTANT PAY PROBABLY RANKS LOW HE SAYS BECAUSE MOST COMPANIES DON'T LINK IT TO PRODUCT INNOVATION INSTEAD COMPANIES REWARD WORKERS FOR OVERALL PERFORMANCE IN EFFECT COMPANIES GENERALLY SAY AS LONG AS YOU DON'T SCREW UP I'LL GIVE YOU A 10 BONUS AT THE END OF THE YEAR THAT DOESN'T BECOME A MOTIVATING FACTOR WHAT MOTIVATES THE TEAM IS SELFACCOMPLISHMENT IN THE SAME POLL THE PRODUCT INNOVATION TEAMS RANKED DOER AS THE NO 1 OF 10 ASPECTS OF A TEAM LEADER'S PERSONALITY THAT MAKES HIM OR HER EFFECTIVE HIGH INTELLIGENCE RANKED SEVENTH AND POLITICAL ASTUTENESS RANKED 10TH CORPORATE BOARDS ARE BECOMING MORE ACTIVE IN SELECTING SENIOR EXECUTIVES NOT JUST THE CHIEF EXECUTIVE EASTMAN KODAK'S DIRECTORS LAST MONTH REJECTED A CHIEF FINANCIAL OFFICER CANDIDATE PRESENTED TO THEM BY CHAIRMAN KAY R WHITMORE MARKING THE FIRST TIME KODAK'S BOARD HAD GOTTEN INVOLVED AT THAT LEVEL A FEW WEEKS LATER THE BOARD ASKED MR WHITMORE TO STEP DOWN BY YEAR'S END A GROUP OF DIRECTORS AT DELL COMPUTER HAS RIGOROUSLY INTERVIEWED CANDIDATES FOR A HALFDOZEN VICE PRESIDENT POSTS IN THE PAST YEAR MOST RECENTLY IT NAMED STEPHEN C MARTSON THE COMPANY'S FIRST VICE PRESIDENT OF WORLDWIDE PROCUREMENT IN MAY THE BOARDS OF PEPSICO AND COCACOLA THIS SPRING BEGAN INTRODUCING THEIR OWN CANDIDATES FOR CONSIDERATION IN SENIORLEVEL SEARCHES SAYS F HASSAN SHARIFF A RECRUITER AT THE JOHNSON GROUP NEW YORK MR SHARIFF SAYS BOARDS FEEL MORE RESPONSIBLE THESE DAYS FOR SENIORLEVEL EXECUTIVES WHO WILL HAVE SAY IN A COMPANY'S LONGTERM STRATEGY ESPECIALLY SINCE J IGNACIO LOPEZ DE ARRIORTUA CHIEF PURCHASING AGENT FOR GENERAL MOTORS DEFECTED TO VOLKSWAGEN ALLEGEDLY TAKING GM SECRETS WITH HIM BOARDS SHOULD BE LOOKING AT ALL OF THE TOP MANAGEMENT AND PARTICULARLY THOSE PEOPLE WHO ARE OFFICERS SAYS ROBERT KELLEY A PROFESSOR AT CARNEGIE MELLON UNIVERSITY'S BUSINESS SCHOOL THEIR INVOLVEMENT ONLY BECOMES MEDDLING WHEN THEY TRY TO CALL THE DAYTODAY SHOTS HE ADDS AN OHIO STATE UNIVERSITY STUDY OF 54 COMPANIES THAT FILED FOR BANKRUPTCY PROTECTION AND 54 COMPARABLE COMPANIES THAT DIDN'T SHOWS THE BANKRUPT BUSINESSES HAD BEEN MORE LIKELY TO INCREASE INSIDER REPRESENTATION ON THEIR BOARDS THE BANKRUPT COMPANIES DECREASED THE PROPORTION OF INDEPENDENT DIRECTORS BY 24 IN THE FIVE YEARS BEFORE THEIR FILINGS COMPARED WITH A 7 DECREASE FOR THE OTHER COMPANIES OF ROUGHLY THE SAME SIZE AND IN THE SAME INDUSTRIES OVER FIVE YEARS SAYS AUTHOR CATHERINE M DAILY AN ASSISTANT MANAGEMENT PROFESSOR THE STUDY SHOWS THAT COMPANIES ON THE BRINK OF BANKRUPTCY TEND TO CIRCLE THE WAGONS AROUND THE CHIEF EXECUTIVE INSTEAD OF REACHING OUT FOR HELP SHE SAYS EARLYRETIREMENT BUYOUTS ARE STILL COMMON SIXTEEN OF THE NATION'S 50 LARGEST COMPANIES OFFERED EARLYRETIREMENT PACKAGES TO SALARIED WORKERS LAST YEAR UP FROM 14 COMPANIES IN 1991 ACCORDING TO A SURVEY BY WYATT CO PERSONNEL CONSULTANTS IN WASHINGTON 9308180044 930714 BOARD OF CONTRIBUTORS WHAT'S WRONG WITH THE CLINTON HEALTH PLAN BY MARTIN FELDSTEIN HEALTH CARE FINANCE IS LIKELY TO BE THE MOST SUBSTANTIAL LEGISLATIVE BATTLE OF THE CLINTON PRESIDENCY THE PLAN BEING COMPLETED BY THE WHITE HOUSE STAFF WOULD RAISE MARGINAL TAX RATES BY MORE THAN 12 PERCENTAGE POINTS FOR MOST TAXPAYERS AND MAKE IT MORE DIFFICULT TO SLOW THE GROWTH OF HEALTH CARE SPENDING FORTUNATELY SUCH A RADICAL INCREASE IN TAXES IS NOT NEEDED TO EXTEND COMPREHENSIVE INSURANCE TO THE CURRENTLY UNINSURED AND TO PROTECT OTHERS AGAINST THE TERMINATION OF THEIR INSURANCE THROUGH UNEMPLOYMENT EARLY RETIREMENT OR THE LOSS OF A SPOUSE THE PROPOSAL THAT WILL SOON BE ON PRESIDENT CLINTON'S DESK LOOKS SOMETHING LIKE THIS CURRENT HEALTH INSURANCE PREMIUMS WILL BE REPLACED BY A TAX EQUAL TO 10 OF FAMILY INCOME UP TO A MAXIMUM OF 5000 AT A FAMILY INCOME OF 50000 BECAUSE OF THE LIMITED TAXES PAID BY LOWERINCOME FAMILIES A SUBSTANTIAL SHORTFALL WOULD REMAIN TO BE FINANCED ALTHOUGH NO DECISIONS HAVE BEEN MADE ABOUT HOW TO FINANCE THIS GAP THE LIKELY ANNUAL COST OF AT LEAST 50 BILLION IS EQUIVALENT TO A FURTHER ONETENTH RISE IN ALL PERSONAL INCOME TAX RATES THE EFFECT OF ALL THIS WOULD BE TO RAISE MARGINAL TAX RATES DRAMATICALLY FOR FAMILIES WITH INCOMES UNDER 50000 WITH THE NEW TAXES IN PLACE A FAMILY WITH 40000 OF INCOME WOULD FACE A COMBINED MARGINAL TAX RATE OF MORE THAN 60 THE NEW 10 HEALTH INSURANCE TAX THE CURRENT 15 EMPLOYER/EMPLOYEE SOCIAL SECURITY TAX THE 28 FEDERAL INCOME TAX RATE RAISED TO AT LEAST 31 TO FINANCE THE PROJECTED HEALTH INSURANCE SHORTFALL A TYPICAL STATE INCOME TAX RATE OF 6 PLUS STATE AND LOCAL SALES TAXES IN AN ATTEMPT TO DISGUISE THE TRUE NATURE OF THE HEALTH INSURANCE TAX THE WHITE HOUSE PLAN WOULD DESCRIBE IT AS A PAYROLL PREMIUM TO BE PAID BY EMPLOYERS WITH A COMPLEX ADJUSTMENT PROCESS TO DEAL WITH TWOEARNER FAMILIES AND WITH NONPAYROLL INCOME BUT A TAX IS A TAX FOR FAMILIES WITH INCOMES UNDER 50000 THE PAYROLL PREMIUM WOULD REQUIRE THE FAMILY TO PAY AN ADDITIONAL 10 CENTS OUT OF EVERY ADDITIONAL DOLLAR OF INCOME THE PAYROLL PREMIUM TAX WOULD NOT GO TO WASHINGTON BUT WOULD BE PAID TO STATELEVEL HEALTH INSURANCE PURCHASING COOPERATIVES HIPCS THAT IN TURN WOULD CONTRACT WITH HEALTH CARE PROVIDERS HEALTH MAINTENANCE ORGANIZATIONS MANAGED CARE PLANS RUN BY INSURANCE COMPANIES HOSPITALBASED CARE SYSTEMS ETC TO OFFER THE PACKAGE OF BENEFITS DESIGNED BY THE GOVERNMENT IN PRINCIPLE ALL PLANS WOULD BE OPEN TO EVERYONE WITHOUT REGARD TO PREEXISTING CONDITIONS IN MY JUDGMENT THIS RADICAL REFORM PLAN IS BAD IN FOUR SIGNIFICANT WAYS IT RAISES MARGINAL TAX RATES ON THE 70 OF FAMILIES WITH INCOMES BELOW 50000 BY AT LEAST 12 PERCENTAGE POINTS A 10 HEALTH INSURANCE TAX AND HIGHER INCOME TAXES TO FINANCE THE 50 BILLION SHORTFALL FAMILIES WITH INCOMES OVER 50000 WOULD PAY THE 5000 HEALTH TAX PLUS ADDITIONAL INCOME TAXES IT DOES NOT STRENGTHEN INCENTIVES TO LIMIT COSTS AND TO PRODUCE HEALTH CARE EFFICIENTLY SINCE PATIENTS WOULD PAY LITTLE OR NOTHING OUTOFPOCKET AT THE TIME OF CARE THEY AND THEIR DOCTORS WOULD HAVE NO INCENTIVE TO SEEK LOWERCOST SOURCES OF CARE MAJOR EMPLOYERS THAT NOW USE PREFERRED PROVIDER PLANS TO NEGOTIATE LOWER COSTS FROM HOSPITALS AND PHYSICIANS WOULD NO LONGER HAVE ANY INCENTIVE TO DO SO IF THEIR COSTS ARE SET BY THE 10 PAYROLL TAX THE FUTURE DISCIPLINE ON HEALTH CARE SPENDING WOULD HAVE TO BE INCREASED GOVERNMENT REGULATIONS WITH AN INEVITABLE DECLINE IN THE QUALITY OF CARE AND PERSONAL SERVICE IT PROVIDES NO MECHANISM FOR PATIENTS AND THEIR DOCTORS TO EXPRESS THEIR TRUE PREFERENCES ABOUT SPENDING ON HEALTH CARE PERSONAL HEALTH CARE NOW EXCEEDS ONEFIFTH OF ALL CONSUMER SPENDING WITH AN EVEN LARGER FRACTION FOR LOWER INCOME FAMILIES MANY HOUSEHOLDS MIGHT PREFER TO SPEND MORE ON HOUSING FOOD AND OTHER THINGS AND LESS ON HEALTH CARE BUT WITH COMPREHENSIVE INSURANCE DESIGNED BY WASHINGTON BUREAUCRATS HOUSEHOLDS HAVE NO WAY OF INFLUENCING HOW THEY ALLOCATE THEIR INCOMES BETWEEN HEALTH CARE AND OTHER THINGS IT WOULD SUBSTANTIALLY INCREASE FUTURE BUDGET DEFICITS THE GOVERNMENT REVENUE CALCULATIONS ASSUME THAT THE HEALTH INSURANCE TAXES WOULD NOT ALTER TAXPAYER BEHAVIOR BUT RAISING THE MARGINAL TAX RATE TO 62 FROM 49 ON MIDDLEINCOME TAXPAYERS A 25 REDUCTION IN THE NETOFTAX SHARE KEPT BY TAXPAYERS FROM EACH ADDITIONAL DOLLAR OF TAXABLE INCOME WOULD REDUCE WORK EFFORT AND CAUSE SHIFTS FROM TAXABLE COMPENSATION TO NONTAXABLE FRINGE BENEFITS IF THIS 25 REDUCTION CAUSED A FALL OF EVEN 5 IN THE TAXABLE INCOMES OF AFFECTED TAXPAYERS THE GOVERNMENT WOULD LOSE MORE THAN 50 BILLION A YEAR IN INCOME AND PAYROLL TAXES THE GOVERNMENT'S FAILURE TO TAKE THIS INTO ACCOUNT MEANS THAT FUTURE DEFICITS WOULD BE SURPRISINGLY LARGE BY AN EQUAL AMOUNT BUT RECOGNIZING IT EXPLICITLY WOULD REDUCE POLITICAL SUPPORT FOR THE HEALTH PLAN BY REQUIRING EVEN HIGHER TAX RATES FUTURE BUDGET DEFICITS WOULD ALSO BE ENLARGED BY COST OVERRUNS WHEN THE MASSIVE COST SAVINGS THAT WHITE HOUSE OFFICIALS ATTRIBUTE TO MANAGED CARE DO NOT MATERIALIZE MY OWN PREFERRED APPROACH TO HEALTH CARE REFORM DESCRIBED BRIEFLY IN THE BOX ACCOMPANYING THIS ARTICLE SEE RELATED ARTICLE A WORKABLE ALTERNATIVE WSJ JULY 14 1993 WOULD BE VERY DIFFERENT BUT I ALSO WANT TO SUGGEST AN ALTERNATIVE PLAN THAT IS MUCH CLOSER TO THE STYLE AND SPIRIT OF THE CURRENT WHITE HOUSE PLAN AND THEREFORE MORE LIKELY TO APPEAL TO PRESIDENT CLINTON AND HIS ADVISERS THIS ALTERNATIVE DUBBED THE APLAN FOR ALTERNATIVE AVOIDS THE FOUR SERIOUS DEFECTS OF THE CURRENT WHITE HOUSE PROPOSAL THE APLAN PROVIDES HEALTH INSURANCE FOR THE ENTIRE POPULATION IN A WAY THAT LIMITS THE MAXIMUM HEALTH CARE COSTS TO THE SAME FRACTION OF EACH FAMILY'S INCOME AS THE WHITE HOUSE PLAN YET IT AVOIDS THE LARGE INCREASES IN MARGINAL TAX RATES AND THE ENLARGED BUDGET DEFICIT IT ALSO HELPS TO CONTROL COSTS AND TO MAKE HEALTH CARE RESPONSIVE TO THE PREFERENCES OF PATIENTS AND THEIR PHYSICIANS IF PRESIDENT CLINTON LIKES THE CURRENT WHITE HOUSE PLAN HE SHOULD LIKE THE APLAN EVEN MORE UNDER THE APLAN THE GOVERNMENT WOULD SPECIFY THE SAME RANGE OF COVERED SERVICES AS UNDER THE WHITE HOUSE PLAN EMPLOYERS AND EMPLOYEES WOULD PAY 10 OF INCOME UP TO A 5000 MAXIMUM TO A HIPC JUST AS UNDER THE WHITE HOUSE PLAN THE GOVERNMENT WOULD MAKE UP THE COST SHORTFALL FROM GENERAL REVENUE UP TO THAT POINT THE APLAN IS ESSENTIALLY IDENTICAL TO THE CURRENT WHITE HOUSE PROPOSAL BUT THERE THE SIMILARITY ENDS THE CRITICAL DIFFERENCE IS THAT UNDER THE APLAN THE FAMILY WOULD RECEIVE A LOW CLAIM REFUND AT THE END OF THE YEAR EQUAL TO THE DIFFERENCE BETWEEN THEIR MEDICAL BILLS AND THE AMOUNT THAT THEY AND THEIR EMPLOYER PAID TO THE HIPC THUS A FAMILY WITH 40000 OF INCOME AND 1200 OF MEDICAL BILLS WOULD RECEIVE A LOW CLAIM REFUND OF 2800 THE LOW CLAIM REFUND HAS TWO DISTINCT AND IMPORTANT ADVANTAGES FIRST THE LOW CLAIM REFUND EFFECTIVELY ELIMINATES THE DRAMATIC 10 PERCENTAGE POINT INCREASE IN MARGINAL TAX RATES A FAMILY WITH 40000 OF INCOME THAT EARNS AN ADDITIONAL 100 WOULD PAY 10 MORE IN TAXES BUT WOULD RECEIVE 10 MORE IN THEIR LOW CLAIM REFUND ONLY IF THE FAMILY'S HEALTH SPENDING EXCEEDED 4000 WOULD AN INCREASED TAX PAYMENT NOT PRODUCE AN EQUAL INCREASE IN THE LOW CLAIM REFUND SINCE ONLY 40 OF FAMILIES WITH INCOMES UNDER 50000 HAVE HEALTH COSTS THAT EXCEED 10 OF THEIR INCOMES 60 OF THOSE FAMILIES WOULD RECEIVE REBATES AND WOULD THEREFORE NOT FACE THE ADDITIONAL 10 PAYROLL TAX ON HIGHER EARNINGS FOR MOST FAMILIES THE LOW CLAIM REFUND WOULD MAKE THE TOTAL COST OF HEALTH CARE LOWER THAN THE WHITE HOUSE PLAN TO OFFSET THIS DIFFERENCE WOULD REQUIRE A LARGER SUBSIDY TO THE HIPCS FROM GENERAL REVENUE PRELIMINARY ANALYSIS THAT I AND MY COLLEAGUES HAVE DONE AT THE NATIONAL BUREAU OF ECONOMIC RESEARCH INDICATES THAT THIS ADDITIONAL SUBSIDY COULD BE FINANCED WITH A 4 PAYROLL TAX EVEN IF TOTAL FAMILY HEALTH COSTS WERE THE SAME WITH THE LOW CLAIM REFUND OF PLAN A AS THEY ARE WITH TRADITIONAL INSURANCE IN SHORT THE LOW CLAIM REFUND CUTS THE 10 EXTRA MARGINAL TAX RATE TO LESS THAN 4 FOR ALMOST ALL FAMILIES SECOND THE LOW CLAIM REFUND WOULD MAKE PATIENTS AND THEIR DOCTORS MORE SENSITIVE TO THE COSTS OF CARE SINCE AN EXTRA DOLLAR OF HOSPITAL OR DOCTOR CHARGES WOULD REDUCE THE FAMILY'S REFUND BY A DOLLAR THE PATIENT WOULD HAVE A STRONG INCENTIVE TO SEEK THE MOST COSTEFFECTIVE CARE WITH MORE THAN 60 OF FAMILIES ELIGIBLE TO RECEIVE REFUNDS THE IMPROVED COST CONSCIOUSNESS WOULD BE VERY SUBSTANTIAL WITH PATIENTS AND DOCTORS HAVING A GREATER INCENTIVE TO BE COSTCONSCIOUS THERE WOULD BE LESS NEED FOR GOVERNMENT REGULATION TO CONTROL COSTS WITH LOWER TOTAL COSTS THE TAX RATES REQUIRED TO FINANCE THE PLAN WOULD BE LOWER WITHOUT BUREAUCRACY MOREOVER PATIENTS MAKING DECISIONS BETWEEN MORE HEALTH SPENDING AND GREATER LOW CLAIM REFUNDS WOULD HELP TO SHAPE THE STYLE AND QUANTITY OF CARE INSTEAD OF RELYING ON THE POLITICAL/BUREAUCRATIC PROCESS TO DETERMINE TOTAL HEALTH SPENDING IN PRACTICE EACH FAMILY WOULD ALSO CHOOSE AN INSURANCE POLICY OR OTHER PREPAYMENT OPTION FROM THE HIPC TO PAY FOR HEALTH SPENDING IN EXCESS OF 10 OF FAMILY INCOME TO GIVE THEM AN INCENTIVE TO CHOOSE COSTEFFECTIVE OPTIONS FAMILIES WOULD RECEIVE REBATES FOR LOW PREMIUM OPTIONS AND WOULD PAY EXTRA FOR HIGH PREMIUM OPTIONS THERE ARE MANY MATTERS OF DETAIL ABOUT THE APLAN THAT COULD BE MODIFIED BUT THE FUNDAMENTAL DIFFERENCE BETWEEN IT AND WHAT APPEARS TO BE THE CURRENT WHITE HOUSE PLAN IS THE LOW CLAIM REFUND IT WOULD PERMIT LIMITING THE NET HEALTH SPENDING FOR EACH FAMILY TO NO MORE THAN THE WHITE HOUSE PLAN BUT WITHOUT THE ADVERSE TAX AND BUDGET EFFECTS AND WITH MORE FAVORABLE EFFECTS ON THE COST AND RESPONSIVENESS OF HEALTH CARE SPENDING WHEN PRESIDENT CLINTON DECIDES DURING THE NEXT FEW WEEKS WHAT PLAN TO SEND TO CONGRESS HE SHOULD RECOGNIZE THAT THERE ARE OPTIONS THAT ACHIEVE HIS GOAL WITHOUT HIGHER TAXES AND THAT INCREASE RATHER THAN DIMINISH MARKET PRESSURES TO CONTAIN HEALTH CARE COSTS MR FELDSTEIN FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS IS A PROFESSOR OF ECONOMICS AT HARVARD SEE RELATED LETTER LETTERS TO THE EDITOR CLINTON PLAN FOR A HEALTHIER AMERICA WSJ AUG 18 1993 9307140127 YY93 MM08 9308180003 930722 LETTERS TO THE EDITOR LIMBAUGH'S VITRIOL IS NO LAUGHING MATTER CONTRARY TO YOUR WHIMSICAL APPROACH ON RUSH LIMBAUGH PAGE ONE JUNE 28 HE'S NO JOKE FROM ANOTHER VIEWPOINT HE'S A MENACE IT WOULD BE REPREHENSIBLE IF ANYONE DAILY REVILED THE CONGRESS SUPREME COURT JUSTICE SYSTEM OR ANY OF THE OTHER FUNDAMENTAL SYMBOLS OF DEMOCRACY IN THE US SO IT IS INAPPROPRIATE UNPATRIOTIC AND UNDERMINING GOVERNMENT WHEN THE OFFICE OF THE PRESIDENT IS BELITTLED AND CRITICIZED DAILY TO A NATIONAL RADIO AUDIENCE BY BEING CHARACTERIZED AS AMERICA HELD HOSTAGE SHAME ON YOUR EDITORS WHO VIEW THIS AS ENTERTAINMENT OR COMIC IT IS NOT ILLEGAL TO REVILE AND BELITTLE THE PRESIDENT DAILY NOR IS THAT ACTION ILLEGAL AGAINST INDIVIDUALS OR INSTITUTIONS THAT IS WHY SHEIK OMAR ABDELRAHMAN HAS BEEN ABLE TO PREACH AGAINST THE GREAT SATAN FROM THE SANCTITY OF HIS MOSQUES BUT WE KNOW SUCH VERBAL DIATRIBE SENDS A MESSAGE TO THE FLOCK WHO ACT OUT THE VERBAL ABUSE AIMED AT THE TARGET WITH VIOLENCE MR LIMBAUGH'S DAILY DIATRIBE ABOUT PRESIDENT CLINTON WRAPPED IN HIS PECULIAR RHETORIC AMERICA HELD HOSTAGE IS A VERBAL DEVIL'S BREW THE LIKES OF WHICH HAS NOT BEEN SEEN OR HEARD IN THIS COUNTRY BEFORE THIS TALK SHOW HOST HAS MANAGED TO CONVERT VERBAL ABUSE ABOUT AN ELECTED OFFICIAL AND THE HIGHEST MOST RESPECTED GOVERNMENT OFFICE A SYMBOL OF DEMOCRACY THROUGHOUT THE WORLD INTO MILLIONS OF DOLLARS OF PROFIT FOR HIMSELF 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 SEE RELATED LETTERS LETTERS TO THE EDITOR MASTER PICADOR GORES THE LIBERAL OX WSJ AUG 18 1993 9307220053 YY93 MM08 9308170156 930817 MARKETING & MEDIA KODAK QUIETLY OFFERS FILM DISCOUNTS OF 10 TO 20 TO SOME BIG CUSTOMERS BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL EASTMAN KODAK CO PRESSURED TO SLASH FILM PRICES BY PRIVATELABEL AND BRANDED RIVALS IS DISCREETLY OFFERING 10 TO 20 DISCOUNTS TO SOME OF ITS BIG CUSTOMERS FILM EXECUTIVES SAY THE PRICE CUTS HAVEN'T YET RESULTED IN SIZABLE SAVINGS FOR CONSUMERS BUT THEY ARE ALLOWING THE ROCHESTER NY PHOTOGRAPHY GIANT TO MAINTAIN ACCOUNTS THAT OTHERWISE THREATEN TO DIVERT MORE OF ITS BUSINESS TO PRIVATE LABEL SUPPLIERS AND ARCHRIVAL FUJI PHOTO FILM CO INDUSTRY EXECUTIVES SAY THE PRICE CUTS BEGAN IN THE SPRING WHEN KODAK BEGAN OFFERING SPECIAL DISCOUNTS TO RETAILERS WHO BUY IN QUANTITIES OF AT LEAST 10000 ROLLS A MONTH A KODAK SPOKESMAN SAID THE COMPANY'S PRICING EXPERTS WEREN'T AVAILABLE FOR COMMENT HOWEVER IN RECENT MONTHS KODAK CHAIRMAN KAY R WHITMORE HAS WORRIED PUBLICLY ABOUT HOW KODAK CAN PRICE FILM TO COMPETE WITH PRIVATE LABEL MAKERS THE BOARD HAS OUSTED MR WHITMORE HE WILL STEP DOWN WHEN A SUCCESSOR IS NAMED A FUJI SPOKESWOMAN SAID THE COMPANY DOESN'T COMMENT ON PRICING STRATEGIES MATTHEW SWEETWOOD A VICE PRESIDENT OF ORANGE NJ FILM DISTRIBUTOR UNIQUE PHOTO INC SAID THAT IN RECENT MONTHS HE HAS SEEN DISCOUNTS ON USMADE KODAK CONSUMER FILM WIDEN TO 25 OFF KODAK'S LOWEST PUBLISHED CATALOG PRICES FROM 8 TO 10 PREVIOUSLY KODAK PRODUCTS ARE AVAILABLE AT VERY LOW PRICES MR SWEETWOOD SAYS THIS IS 15 PERCENTAGE POINTS LOWER THAN WE'VE SEEN IN THE PAST ON A CONSISTENT BASIS ACROSS THE LINE THE RESULT IN THE PAST SIX MONTHS MR SWEETWOOD HAS BEEN ABLE TO DROP HIS WHOLESALE PRICE TO 310 A ROLL OF 200SPEED COLOR FILM FOR THOSE WHO BUY 5000 ROLLS AT A TIME FROM 350 A ROLL THIS SPRING THE PRICES ARE FOR FILM MADE IN THE US NOT FOR SOCALLED GRAYMARKET FILM WHICH MR SWEETWOOD BUYS OVERSEAS AT LOW PRICES AND SHIPS BACK HERE FOR SALE TO US CUSTOMERS IN STORES KODAK FILM STILL SELLS FOR MORE THAN FUJI'S AT RITZ CAMERA IN PITTSBURGH FOR INSTANCE A SINGLE 24EXPOSURE ROLL OF KODAK FILM SELLS FOR 549 COMPARED WITH 509 FOR FUJI THAT IS WELL ABOVE PRICES FOR AGFA 315 FOR A ROLL OF THE SAME FILM AGFA IS THE PHOTOGRAPHIC SUBSIDIARY OF BAYER AG'S MILES INC UNIT MEANWHILE RITZ PRIVATE LABEL FILM ALSO MADE BY AGFA SELLS FOR 460 FOR TWO ROLLS UNDER A CURRENT BUYONE GETONEFREE PROGRAM AN EXECUTIVE AT A LARGE FILM RETAILER WHO DECLINED TO BE IDENTIFIED SAYS HIS COMPANY HAS BEFITED FROM SIGNIFICANT PRICE CUTS ON KODAK FILM SINCE MAY ALTHOUGH KODAK AND OTHER FILM MAKERS USUALLY OFFER DISCOUNTS IN RETURN FOR BULK ORDERS I HAVE NOT SEEN THIS KIND OF AGGRESSIVE ACTION IN YEARS THE EXECUTIVE SAYS IF IT PERSISTS IT'S GOING TO BE GOOD NEWS FOR THE CONSUMER ALTHOUGH THE STRONG YEN IS AN INCENTIVE FOR FUJI TO RAISE PRICES THE JAPANESE FILM MAKER HAS INSTEAD LOWERED PRICES TO KEEP THE PRESSURE ON KODAK FUJI HAS SAID IT PLANS TO IGNORE CURRENCY FLUCTUATIONS TO MAINTAIN ITS STANDINGS IN THE US MARKETPLACE SAID ONE FILM RETAILER WHO BUYS FROM FUJI HE DECLINED TO BE IDENTIFIED MEANWHILE KODAK IS FACING PRICING PRESSURE ON ANOTHER FRONT PHOTOGRAPHIC PAPER WHICH IS USED TO PRINT PHOTOS FUJI AND AGFA USUALLY UNDERSELL KODAK BY ABOUT 10 BUT NOW FUJI'S AND AGFA'S DISCOUNTS HAVE WIDENED TO 25 OFF OF KODAK'S PRICES SAYS RICK BACHELDER PRESIDENT OF FILMET A PITTSBURGH PHOTOFINISHING STORE MR BACHELDER A FIERCELY LOYAL KODAK CUSTOMER WHO REMEMBERS HOW KODAK REPRESENTATIVES HELPED HIM CLEAN UP WHEN HIS STORE BURNED DOWN YEARS AGO SAYS HE IS TEMPTED TO SWITCH TO AGFA I KNOW HE SAYS WEAKLY WHEN REMINDED HE WOULD NOT HAVE MADE SUCH A THREAT EVER BEFORE WE'RE GETTING PRICES QUOTED FROM AGFA AND FUJI LOWER THAN WE'VE EVER HAD THEM PERIOD HE EXPLAINS MR BACHELDER WHO HAS ASKED FOR PRICE CONCESSIONS FROM KODAK IN THE PAST APPROACHED HIS SALESPERSON ON THE SUBJECT AGAIN IN RECENT WEEKS AND HAS BEEN PROMISED AN ANSWER BY THE END OF THE MONTH IN THE PAST THE ANSWER WAS NO' HE SAYS NOW IT'S LET'S TALK 9308170155 930817 NOTE SALE BY TRANSTEXAS GAS CATCHES ON WITH MUTUAL FUNDS BUT NOT BANKS BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JUNKBOND MUTUAL FUNDS ARE SET TO RUSH IN WHERE BANKS FEAR TO TREAD THIS WEEK'S HOT OFFERING IS A 460 MILLION BOND SALE BY CLOSELY HELD TRANSTEXAS GAS CORP WHOSE PARENT COMPANY HOLDS THE RARE IF DUBIOUS DISTINCTION OF HAVING VENTURED INTO BANKRUPTCY COURT TWICE WITHIN A DECADE UNDER TERMS OF THE COMPANY'S MOST RECENT REORGANIZATION PLAN APPROVED BY A BANKRUPTCY COURT IN HOUSTON IN 1987 MOST OF THE PROCEEDS OF THIS OFFERING ARE SLATED TO GO TO CREDITORS STILL OUTOFPOCKET FROM THAT BANKRUPTCY PROCEEDING THIS WILL ALLOW THE COMPANY'S SOLE OWNER JOHN R STANLEY KNOWN AS JACK TO KEEP FULL CONTROL OVER THE COMPANY HE FOUNDED MORE THAN 20 YEARS AGO MR STANLEY'S TRACK RECORD IN BANKRUPTCY COURT GIVES SOME INVESTORS PAUSE MR STANLEY A ONETIME GASOLINE STATION ATTENDANT OWNS A LARGER SWATH OF US NATURAL GAS FIELDS THAN ANY OTHER INDIVIDUAL IN THE COUNTRY MORE THAN 268000 ACRES IN WEBB AND ZAPATA COUNTIES IN SOUTH TEXAS NOT CONTENT WITH NATURAL GAS EXPLORATION AND PRODUCTION MR STANLEY BUILT A HUGE AMMONIA PLANT THE VENTURE THAT DROVE HIS COMPANY INTO ITS FIRST TRIP TO BANKRUPTCY COURT IN 1975 GHR ENERGY CORP AS THAT COMPANY WAS RENAMED EMERGED IN 1980 ONLY TO SEEK CHAPTER 11 BANKRUPTCYCOURT PROTECTION FROM CREDITORS LESS THAN THREE YEARS LATER WITH DEBTS OF 12 BILLION MR STANLEY PAID THE BANKS OFF AFTER HIS FIRST REORGANIZATION AND HOPES TO DO SO ONCE AGAIN STILL ESTIMATES OF BANK LOSSES ARE SAID TO HAVE TOTALED AS MUCH AS 200 MILLION IN LOST INTEREST AND OTHER CONCESSIONS AS A RESULT THE DEBT ISN'T POPULAR WITH BANKS ANALYSTS SAY BUT THAT HASN'T DAUNTED THE MUTUAL FUNDS JEFFRIES & CO THE WEST COAST FIRM THAT IS THE ISSUE'S SOLE UNDERWRITER HAS LET IT BE KNOWN THAT WITH ORDERS FOR 15 BILLION OF THE BONDS BY FRIDAY THE ISSUE IS OVERSUBSCRIBED MORE THAN 3 TO 1 THE DRAW FOR INVESTORS IN A WORD YIELD THE YIELD ON THE SEVENYEAR SENIOR SECURED NOTES EXPECTED TO BE PRICED THIS WEEK IS PEGGED AT 10375 ABOUT 16 PERCENTAGE POINTS MORE THAN THE YIELD ON JUNK BONDS OF COMPARABLE MATURITY AND CREDIT RATING THE BONDS ARE RATED DOUBLEB BY DUFF & PHELPS/MCM DOUBLEBMINUS BY STANDARD & POOR'S CORP AND SINGLEB1 BY MOODY'S INVESTORS SERVICE INC THIS ISSUE POSES A REAL DILEMMA FOR INVESTORS SAID ROGER KING ENERGY ANALYST IN CITICORP'S HIGH YIELD BOND GROUP ON THE ONE HAND YOU'VE GOT GOOD ASSETS NICE SECURITY A HIGH COUPON AND A GOOD RATING AND ON THE OTHER HAND THERE'S MR STANLEY IF HE IS UNKNOWN TO MUTUALFUND INVESTORS MR STANLEY IS WELL KNOWN TO THE BANKRUPTCY BAR WHERE HIS FIERCE TACTICS HAVE MADE HIM LEGENDARY DURING THE TWO PROCEEDINGS HE OFTEN SUED INDIVIDUALS WHO WORKED AT CREDITOR BANKS CREDITORS' MOTIONS WERE OFTEN ANSWERED WITH MOTIONS FOR SANCTIONS AGAINST THEIR ATTORNEYS THIS LITIGIOUS APPROACH HELPED STRETCH OUT BOTH PROCEEDINGS BUT IT ALSO ENSURED THAT MR STANLEY WOULD KEEP ALL THE COMPANY'S EQUITY A VERY UNUSUAL OUTCOME IN BANKRUPTCY PROCEEDINGS WHERE STOCKHOLDERS USUALLY LOSE MOST OF THE VALUE OF THEIR SHARES IN EXCHANGE MR STANLEY AGREED TO REPAY HIS CREDITORS IT HASN'T BEEN EASY GETTING THIS DEAL ASSEMBLED TO DO SO MR STANLEY AGREED TO TRANSFER ALL HIS NATURAL GAS ASSETS WHICH SECURE THE BONDS INTO NEWLY FORMED TRANSTEXAS GAS A VOTING TRUST TO BE CONTROLLED BY INDEPENDENT DIRECTORS STANDS BETWEEN HIM THE SOLE SHAREHOLDER OF THE PARENT COMPANY AND THE ASSETS CURRENT STRONG NATURAL GAS PRICES HAVE CREATED GENEROUS GASRESERVE VALUATIONS AND CASH FLOW STANDS AT A HEARTY 43 TIMES THE ESTIMATED ANNUAL INTEREST BILL BUT DUFF & PHELPS ANALYST KATHRYN MAAG SAID HER CREDIT RATING REFLECTS CONCERN ABOUT THE COMPANY AND THE STRUCTURE OF THE TRANSACTION TRANSTEXAS GAS'S PROPERTIES HAVE A HIGH INITIAL PRODUCTION RATE BUT A HALFLIFE OF ONLY TWO YEARS THAT MEANS CONTINUOUS PRESSURE TO KEEP DRILLING INDEED THE COMPANY INTENDS TO BOOST SPENDING TO 125 MILLION IN FISCAL 1994 ENDING NEXT AUGUST FROM 88 MILLION IN FISCAL 1992 TRANSTEXAS GAS USES SOCALLED FULL COST ACCOUNTING AN ACCEPTED ACCOUNTING METHOD THAT ALLOWS COMPANIES TO CAPITALIZE OR TREAT AS A DEPRECIABLE ASSET THE COST OF EXPLORATION EVEN BEFORE KNOWING IF THEY ARE SUCCESSFUL THAT TREATMENT MAY OVERSTATE THE COMPANIES' ABILITY TO GENERATE CASH FLOW FINALLY THE COMPANY WILL INHERIT MR STANLEY'S SUBSTANTIAL BLOCK OF OUTSTANDING LITIGATION IN FACT 20 MILLION OF THE NEW OFFERING IS TO BE SET ASIDE TO FINANCE THOSE PROCEEDINGS ATTORNEYS FAMILIAR WITH MR STANLEY VOICED SOME SKEPTICISM ABOUT THE PROTECTION NEW NOTEHOLDERS WILL GET MR STANLEY WILL STILL GET A SHARE OF THE COMPANY'S CASH FLOW THROUGH A TAXALLOCATION AGREEMENT THAT UPSTREAMS TO THE PARENT WHATEVER TAXES TRANSTEXAS WOULD ORDINARILY PAY IF IT WERE INDEPENDENT FURTHER COMPANIES OWNED BY FAMILY MEMBERS DID ABOUT 15 MILLION OF BUSINESS WITH TRANSTEXAS GAS LAST YEAR AND INTEND TO CONTINUE THE PRACTICE THE OFFERING HAS BEEN LONG IN COMING A DEADLINE FOR REFINANCING THE BANK DEBT CAME AND WENT MORE THAN A YEAR AGO THE CURRENT PUBLIC OFFERING OF SECURITIES CAPS A YEARLONG PILGRIMAGE ON MR STANLEY'S BEHALF BY JAMES GISONDI OF HELMSLEYSPEAR WHO TURNED TO WALL STREET AFTER SEVERAL COMMERCIAL BANKS AND INSURANCE COMPANIES TURNED DOWN A REFINANCING ACCORDING TO PEOPLE FAMILIAR WITH THE COMPANY BANKERS SAY THIS DEAL ENDED UP AT JEFFRIES AFTER OTHER FIRMS DEMURRED FRANK BAXTER THE FIRM'S CHIEF EXECUTIVE OFFICER DECLINED TO COMMENT BECAUSE OF SECURITIES AND EXCHANGE COMMISSION REGULATIONS GOVERNING SECURITIES OFFERINGS IN REGISTRATION BUT BANKERS AGREE THAT THE OFFERING IS A BIG GAMBLE FOR JEFFRIES WHICH HAS LED PUBLIC UNDERWRITINGS FOR ONLY TWO ISSUERS IN THE PAST 20 MONTHS THE GAMBLE COULD BE LUCRATIVE FOR JEFFRIES UNDERWRITING FEES AT 375 SHOULD EXCEED 17 MILLION JEFFRIES'S TRACK RECORD WITH NEW ISSUES IS SPOTTY TWO OF THE FIRM'S DOZEN PRIVATELY PLACED DEALS LIGGETT GROUP AND TEREX CORP TRADE FAR BELOW THEIR OFFERING PRICES AND ONE OF JEFFRIES'S PUBLIC DEALS A 100 MILLION OFFERING JOINTLY UNDERWITTEN WITH HOWARD WEIL FOR PLAINS RESOURCES LAST OCTOBER TEMPORARILY DROPPED 10 POINTS IN PRICE WHEN THE COMPANY ANNOUNCED A DRY HOLE AND THE RESIGNATION OF ITS CHAIRMAN TWO WEEKS AFTER THE DEBT OFFERING THE BONDS SINCE HAVE REBOUNDED TO TRADE AT 105 1/2 INVESTMENT BANKERS IN THE ENERGY GROUP FROM HOWARD WEIL RECENTLY LEFT TO JOIN JEFFRIES AND HELPED PUT THE TRANSTEXAS GAS DEAL TOGETHER 9308170154 930817 FOR ONCE LET'S NOT TALK BY ADAM BRODSKY TOO MANY PEOPLE ARE IN LOVE WITH THE IDEA OF DIALOGUE WHEN THE END OF THE COLD WAR AND THE VICTORY IN THE GULF SEEMED TO OPEN A WINDOW OF OPPORTUNITY FOR PEACE IN THE MIDDLE EAST AMERICA AS HONEST BROKER AND OTHERS RUSHED TO GET THE ARABS AND ISRAELIS TO THE TABLE DEMOCRATIC ISRAEL WAS SUPPOSED TO SIT DOWN AND TRUST PEOPLE LIKE HAFEZ ASSAD OF SYRIA NOW ISRAEL SEEMS TO BE MOVING TOWARD DIRECT NEGOTIATIONS WITH THE PALESTINE LIBERATION ORGANIZATION A GROUP WHOSE TERRORIST WAYS ARE QUICKLY BEING FORGOTTEN SIMILARLY WHEN NEWS BROKE LAST SUMMER THAT THE SERBS WERE RAPING AND MURDERING BOSNIAN MUSLIMS THE WEST'S REACTION WAS TO ORGANIZE PEACE TALKS AS FAST AS IT COULD THEY'RE STILL WORKING ON TALKS TO JAW JAW JAW AS CHURCHILL SAID IS BETTER THAN TO WAR WAR WAR SOMETIMES PERHAPS BUT TOO OFTEN IT'S A FALSE HOPE OR A COVER FOR SOME OTHER AGENDA OR AN ACT OF MORAL COWARDICE THAT APPEASES EVEN ENCOURAGES EVIL FORCES CHURCHILL UNLIKE CHAMBERLAIN KNEW THAT SINCE THE RISE OF NAZISM DIALOGUE HAS BEEN AN EVIL SEDUCTRESS IN CONFLICT AFTER CONFLICT THE WORLD HAS FOOLISHLY LOOKED TO NEGOTIATION DIPLOMACY PEACE PROCESSES AND TREATIES BY REASONING PATIENCE AND DIALOGUE PLEADED POPE JOHN PAUL II ON THE EVE OF THE GULF WAR IT IS POSSIBLE TO IDENTIFY AND TRAVEL THE PATHS OF UNDERSTANDING AND PEACE THE SENTIMENT IS ADMIRABLE BUT BADLY MISAPPLIED SADDAM HUSSEIN WOULD SURELY HAVE BEEN WILLING TO NEGOTIATE FOREVER AS HE RAPED AND PLUNDERED IRAQ'S NEW 19TH PROVINCE NOR HAVE NEGOTIATIONS BEEN THE MORAL COURSE IN THE BALKANS WHILE LORD OWEN AND CYRUS VANCE DITHERED SERBIAN LEADERS CARRIED OUT THEIR PROGRAM OF ETHNIC CLEANSING CLAIMING MOST OF BOSNIA AND HERZEGOVINA IN THE PROCESS OVER THE PAST SEVERAL MONTHS PRESIDENT CLINTON'S WAFFLING ON FORCE HAS ALLOWED THE SERBS TO CONFIRM THEIR CONQUESTS AND THEIR CYNICISM TOWARD A DIALOGUE IN WHICH THEY HAVE BEEN ONLY TOO HAPPY TO PARTICIPATE IN A DOMESTIC URBAN EXAMPLE THE ADMINISTRATION OF MAYOR DAVID DINKINS IN NEW YORK APPEARS TO HAVE PREFERRED DIALOGUE OVER DEED DURING THE CROWN HEIGHTS RIOTS THESE ERUPTED AFTER A CAR ACCIDENT IN BROOKLYN KILLED A SEVENYEAROLD BLACK CHILD ACCORDING TO ONE ACCOUNT THE DEPUTY MAYOR AT THE TIME BILL LYNCH WHO DENIES THE REPORT LISTENED SYMPATHETICALLY PROBABLY IN AN ATTEMPT TO PLAY HONEST BROKER AS A ROOMFUL OF BLACKS THREATENED ANTISEMITIC VIOLENCE THE THREATS WERE CARRIED OUT OVER THE COURSE OF THE FOLLOWING THREE NIGHTS TOO OFTEN AS IN THIS CASE DIALOGUE IS AN INCENTIVE FOR MORE AGGRESSION IT SEEMS TO PROMISE THAT BAD DEEDS WILL GO UNPUNISHED ON THE INTERNATIONAL FRONT FOR THE SADDAM HUSSEINS AND SLOBODAN MILOSEVICS OF THE WORLD THE MESSAGE IS GATHER YE BARGAINING CHIPS WHILE YE MAY FOR TOMORROW WE WILL MAKE PEACE AND YET PEACE TALKS GENERALLY CONTRIBUTE LITTLE TOWARD SETTLING CRISES PARTICULARLY COMPARED WITH FACTS ON THE GROUND THE COLD WAR'S OUTCOME OWES MORE TO ECONOMICS AND AMERICAN MILITARY RESOLVE THAN TO ALL THE PRESIDENTIAL SUMMITS AND SALT DISCUSSIONS COMBINED AND RARELY CAN NEGOTIATIONS AVERT DISASTER THE MILLIONS OF LIVES LOST FOLLOWING IMPORTANT TALKS AND AGREEMENTS DURING THIS CENTURY ALONE PROVIDE AMPLE REASON AT LEAST TO BAN THE CHAMPAGNEPOPPINGAFTERSIGNING CEREMONIES THE REAL QUESTION IS HOW TO GET THE PARTIES TO SEE PEACE AS IN THEIR INTEREST AND THAT OFTEN TAKES MORE THAN AN APPEAL TO CONSCIENCE THERE ARE TIMES TO BE SURE FOR TALKING TALKING CAN BUY TIME DURING WHICH A BALANCE OF POWER CAN BE SHIFTED TALKS CAN ALSO BE USEFUL FACESAVERS WHEN CAPITULATION IS WISE BUT UNPOPULAR THE US FOR EXAMPLE SO FAR HAS PREFERRED TALKS TO SENDING TROOPS TO THE BALKANS BUT IN SUCH CASES IN WHICH CARNAGE AND AGGRESSION GO UNCHECKED THE PROPOSITION THAT NEGOTIATION AND SETTLEMENT IS THE MORE CIVILIZED ROUTE OR THAT IT CAN PRODUCE A JUST AND LASTING PEACE IS DISINGENUOUS IT'S WORTH NOTING THAT DIPLOMATS AND LEADERS WHO PUSH RIVALS TO THE BARGAINING TABLE OFTEN HAVE THEIR OWN AGENDA POLITICAL LEADERS DROOL OVER BEING CALLED SKILLFUL STATESMEN FOR HAVING FACILITATED TRUCES NO MATTER HOW SHAKY OR UNJUST HENRY KISSINGER WAS NEVER ASKED TO RETURN HIS NOBEL PEACE PRIZE EVEN THOUGH THE DEAL HE BROKERED AND FOR WHICH HE WON THE AWARD WAS FOLLOWED BY MASSIVE SLAUGHTER IN SOUTHEAST ASIA THE TEMPTATION TO TALK THINGS OUT EXTENDS WELL BEYOND INTERNATIONAL DIPLOMACY AT HOME AN ENTIRE INDUSTRY OF CONFLICT RESOLUTION HAS SPROUTED UP IN RECENT YEARS DEALING WITH EVERYTHING FROM LABOR DISPUTES TO LOCAL RACIAL SPATS FAMILY THERAPISTS LAWYERS AND COURTAPPOINTED ARBITRATORS FREQUENTLY URGE CLIENTS TO TRY DIALOGUE TO SOLVE THEIR PROBLEMS IN ALMOST EVERY CASE HOWEVER THE FAIRNESS AND PERMANENCE OF THE SETTLEMENTS ARE LESS IMPORTANT THAN THE SETTLEMENTS THEMSELVES THESE PEOPLE AFTER ALL MAKE THEIR LIVINGS BASED ON THE NUMBER OF DEALS THEY STRIKE TO THE DREAMERS DIALOGUE MEANS SITTING DOWN WITH YOUR ENEMIES NO MATTER WHO THEY ARE TO MAKE PEACE BUT WHAT HAPPENS WHEN YOUR ENEMIES ARE THE KHMER ROUGE THE PLO OR THE IRA WHAT HAPPENS WHEN YOUR ENEMY IS THE DEVIL HIMSELF DOESN'T INVITING SUCH PARTIES TO TALK RISK LEGITIMIZING THEIR EXTREMISM THE US OUGHT TO BE MORE REALISTIC BEFORE PUTTING DIPLOMACY ON THE HIGHEST MORAL PEDESTAL WHEN BELLIGERENTS ARE BREAKING FUNDAMENTALLY SOUND CIVILIZED CODES OF BEHAVIOR DIALOGUE UNDERSTANDING AND HUNTS FOR UNDERLYING CAUSES ARE NO SUBSTITUTES FOR ACTION IT MAKES NO SENSE TO HAVE SERBIAN RAPISTS SIT DOWN WITH THEIR MUSLIM VICTIMS IN AN ATTEMPT TO GET THEM TO KNOW EACH OTHER BETTER FOR ALL THE TIMES WHEN PEACE TALKS SOUND IDYLLIC THERE ARE TIMES WHEN IT'S BETTER TO SAY NO THIS IS NO TIME FOR TALKING THEY SAY TALK IS CHEAP THEY'RE WRONG SOMETIMES IT COMES WITH A STIFF PRICE MR BRODSKY IS NEWS EDITOR AT THE FORWARD A JEWISH WEEKLY PUBLISHED IN NEW YORK 9308170153 930817 NATIONAL MEDICAL ACCUSED OF SEX BIAS IN SUIT BY TOPRANKING FEMALE MANAGER BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL SANTA MONICA CALIF NATIONAL MEDICAL ENTERPRISES INC'S TOPRANKING FEMALE EXECUTIVE ACCUSED THE COMPANY OF SEXUAL DISCRIMINATION ALLEGING THAT WHEN IT SHUFFLED MANAGEMENT IN THE SPRING SHE WAS DENIED THE POST OF CHIEF EXECUTIVE OFFICER BECAUSE SHE IS A WOMAN NITA P HECKENDORN EXECUTIVE VICE PRESIDENT AND A DIRECTOR MADE THE ALLEGATION IN A LAWSUIT FILED YESTERDAY IN STATE COURT HERE THE SUIT SAID THAT SOME DIRECTORS OPPOSED HER FOR THE TOP SLOT AND LATER FOR THE POSITION OF CHIEF FINANCIAL OFFICER BECAUSE THEY FELT UNCOMFORTABLE WORKING WITH A WOMAN THE SUIT ALSO NAMES FOUR INDIVIDUAL DIRECTORS OF THE SANTA MONICABASED HEALTHCARE SERVICES CONCERN THE SUIT CONTENDS THAT THE 50YEAROLD MS HECKENDORN WAS THE FIRST CHOICE OF NATIONAL MEDICAL'S FORMER LONGTIME CHIEF RICHARD K EAMER TO SUCCEED HIM AND THAT HE LOBBIED THE BOARD FOR HER SELECTION THE REACTION OF THE LEAD OUTSIDE DIRECTORS TO EAMER'S SUGGESTION THAT MS HECKENDORN SHOULD BE APPOINTED TO THE CEO POSITION WAS OUTRAGE THE SUIT SAYS ONE DIRECTOR ACCORDING TO THE LAWSUIT CALLED THE SUGGESTION CRAZY NATIONAL MEDICAL CHOSE DIRECTOR JEFFREY C BARBAKOW AN INVESTMENT BANKER AND FORMER ENTERTAINMENT EXECUTIVE TO BE CHIEF EXECUTIVE OFFICER AS OF JUNE 1 THE DIRECTORS NAMED IN THE SUIT ARE MR BARBAKOW RAYMOND A HAY MAURICE J DEWALD AND PETER DE WETTER OTHER ALLEGATIONS INCLUDE SEXUAL HARASSMENT RETALIATION AND DEFAMATION NATIONAL MEDICAL'S SPOKESMAN DAVID OLSON SAID THE COMPANY WAS SHOCKED BY THE LAWSUIT WHICH HE SAID ENDS MS HECKENDORN'S EMPLOYMENT AS EXECUTIVE VICE PRESIDENT OF CORPORATE STRATEGIC AND FINANCIAL PLANNING THE ALLEGATIONS ARE NOT WELLFOUNDED AND WE PLAN TO CONTEST THIS VIGOROUSLY HE SAID NONE OF THE INDIVIDUAL DEFENDANTS INCLUDING MR BARBAKOW COULD BE REACHED FOR COMMENT MS HECKENDORN WAS ASKED TO RESIGN FROM THE BOARD AS PART OF A PLAN TO RESPOND TO INSTITUTIONAL INVESTORS' REQUEST TO REDUCE THE NUMBER OF INSIDE DIRECTORS MR OLSON SAID SHE WAS NEVER ASKED TO RESIGN AS AN OFFICER OF THE COMPANY SHE APPROACHED NME OFFERING HER RESIGNATION IN EXCHANGE FOR A SUBSTANTIAL FINANCIAL PACKAGE WHEN WE DID NOT MEET HER DEMAND WE RECEIVED THE LAWSUIT THE LAWSUIT OFFERS AN ACCOUNT OF BEHINDTHESCENES EVENTS THAT LED TO MR EAMER'S ABRUPT ANNOUNCEMENT OF HIS DEPARTURE IN APRIL MS HECKENDORN'S VERSION DIFFERS SHARPLY FROM EARLIER REPORTS THAT MR EAMER STEPPED DOWN VOLUNTARILY SHE SUGGESTS IN THE SUIT THAT THE BOARD FORCED MR EAMER TO STEP DOWN AND THAT MR BARBAKOW WASN'T HIS HANDPICKED SUCCESSOR MR EAMER WHO ISN'T NAMED AS A DEFENDANT IN THE SUIT DIDN'T RETURN A MESSAGE LEFT AT HIS OFFICE MS HECKENDORN'S SUIT ALSO CITES SEVERAL SPECIFIC INSTANCES OF ALLEGED HARASSMENT AND SEXUALLY DEROGATORY REMARKS BY INDIVIDUAL DIRECTORS HER SUIT ASSERTS THAT MR HAY TRIED TO RUIN HER REPUTATION BY ASKING COMPANY OFFICERS AND EMPLOYEES IF THEY HAD HEARD' WHETHER MS HECKENDORN HAD BEEN SLEEPING WITH EAMER' AT ONE BOARD MEETING MR HAY ALLEGEDLY INVITED MS HECKENDORN TO SIT IN HIS LAP MR DEWALD REPEATEDLY CALLED HER BABE AT BOARD MEETINGS AND OTHER TIMES THE SUIT SAID MS HECKENDORN'S ATTORNEY PEGGY GARRITY DENIED THAT HER CLIENT EVER HAD A PERSONAL RELATIONSHIP WITH MR EAMER MS HECKENDORN WHO REMAINS A DIRECTOR HAD RISEN THROUGH THE RANKS SINCE JOINING NATIONAL MEDICAL IN APRIL 1982 AS DIRECTOR OF BUDGET AND PERFORMANCE REVIEW HER SUIT SEEKS 15 MILLION IN DAMAGES THE SUIT ADDS TO A HEAVY BURDEN OF LITIGATION ALREADY FACING NATIONAL MEDICAL THE COMPANY IS UNDER INVESTIGATION BY VARIOUS FEDERAL AND STATE AGENCIES AND HAS BEEN SUED BY A NUMBER OF INSURANCE COMPANIES OVER HUNDREDS OF MILLIONS OF DOLLARS IN CLAIMS THAT THE INSURERS CONTEND ARE FRAUDULENT 9308170152 930817 HUNGARIAN CONSUMER PRICES FRANKFURT CONSUMER PRICES IN HUNGARY ROSE 06 IN JULY FROM JUNE AND 21 FROM JULY 1992 THE MTIECONEWS AGENCY REPORTED CITING THE CENTRAL STATISTICAL OFFICE 9308170151 930817 WHO'S NEWS GALBREATH CO GALBREATH CO COLUMBUS OHIO NOEL A SPILLANE 61 YEARS OLD JOINED GALBREATH RIVERBANK LP A NEW YORK DIVISION OF THIS REAL ESTATE COMPANY AS VICE CHAIRMAN MR SPILLANE FORMERLY WAS PRESIDENT OF WM A WHITE/GRUBB & ELLIS THE NEW YORK BROKERAGE OPERATION OF GRUBB & ELLIS CO 9308170150 930817 WHO'S NEWS STEIN MART INC STEIN MART INC JACKSONVILLE FLA MICHAEL D FISHER SENIOR VICE PRESIDENT MILLERS OUTPOST ONTARIO CANADA WAS NAMED EXECUTIVE VICE PRESIDENTSTORES A NEW POST AT THIS CLOTHING RETAILER 9308170148 930817 ENTERPRISE FLOODHIT BUSINESSES MAY GET MORE GOVERNMENT HELP SBA RAISES LOAN MAXIMUM INCLUDES SOME COMPANIES THAT MANAGED TO STAY DRY BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL FOR SMALL BUSINESSES DEVASTATED BY THE RECORD FLOODS IN THE MIDWEST THERE IS AT LEAST ONE SHRED OF GOOD NEWS THERE MAY BE MORE GOVERNMENT HELP THAN MANY EXPECT LAST WEEK PRESIDENT CLINTON SIGNED EMERGENCY LEGISLATION BOOSTING THE MAXIMUM SMALL BUSINESS ADMINISTRATION LOAN FOR PHYSICAL DAMAGE IN THE FLOODING TO 15 MILLION FROM THE STANDARD 500000 AND CONTRARY TO WHAT MANY ASSUME A BUSINESS DOESN'T EVEN NEED TO BE FLOODED TO GET HELP UNDER OTHER PROVISIONS THE SBA OFFERS LOANS COVERING FINANCIAL AS WELL AS PHYSICAL LOSSES THAT IS A RELIEF TO SOME OF THE BUSINESSES THAT ARE PART OF THE AMANA COLONIES A CONVENTION AND TOURIST CENTER IN EASTCENTRAL IOWA THEY WILL APPLY FOR THE LOANS EVEN THOUGH THEY WEREN'T FLOODED THOUGH ONE SMALL ROAD IN THE AREA WAS FLOODED ABOUT HALF THE 15 MILLION TOURISTS EXPECTED TO VISIT THE QUAINT OLD TOWN IN THE LAST SEVERAL WEEKS STAYED AWAY SAYS ROZELLA HAHN EXECUTIVE DIRECTOR OF THE TOWN'S VISITORS BUREAU THE NEWS MEDIA GAVE THE IMPRESSION THAT THE STATE WAS TOTALLY UNDER WATER AND IT COST US A BUNDLE IN TERMS OF THE TOURIST TRADE SHE SAYS WE WERE HIGH AND DRY AND READY TO DO BUSINESS BUT NOBODY CAME MANY OTHER BUSINESSES OF COURSE HAVE SUFFERED DEVASTATING PHYSICAL DAMAGE TO MEET THE NEEDS OF FLOOD VICTIMS ABOUT 400 EMPLOYEES OF THE SBA'S DISASTER OFFICE ARE WORKING AT DISASTER CENTERS IN NINE STATES HIT BY THE FLOODS THEY HAVE THEIR WORK CUT OUT FOR THEM IN DES MOINES ALONE ABOUT 300 BUSINESSES SUFFERED FLOOD DAMAGE ACCORDING TO THE LOCAL CHAMBER OF COMMERCE MANY OF THESE BUSINESSES LOST MORE THAN 1 MILLION WORTH OF PROPERTY EACH NUMEROUS BUSINESS OWNERS FEAR THAT GOVERNMENT HELP WILL BE WOEFULLY INADEQUATE BUT OTHERS ARE COUNTING ON THE SBA FOR RELIEF THAT COULD MAKE A CRUCIAL DIFFERENCE IN A HORRIFYING SITUATION A TYPICAL FLOOD VICTIM CAPITAL SANITARY SUPPLY CO IN DES MOINES BAILED ITS OFFICES OUT OF SIX FEET OF WATER IT WAS MY WORST NIGHTMARE SAYS DOUGLAS IRELAND THE COMPANY'S OWNER THERE WAS NO RUNNING WATER AND NO ELECTRICITY BUT THE IMPORTANT THING WAS TO GET BACK IN BUSINESS QUICKLY TO SERVICE OUR CUSTOMERS AND THE DISASTER ORGANIZATIONS DOING MAJOR CLEANUP CAPITAL HAD TO TAKE ALL ITS OFFICE FURNITURE TO A LANDFILL REMOVE DRYWALL AND SHOVEL MUD FROM ITS BUILDING SOME OF THE SEVERAL HUNDRED VOLUNTEERS WHO DESCENDED ON THE NEIGHBORHOOD FROM ST PAUL MINN HELPED WITH THAT INITIAL CLEANING CAPITAL MOVED TO TEMPORARY QUARTERS ORDERED ALMOST ALL NEW MERCHANDISE AND WAS BACK IN BUSINESS WITHIN THREE DAYS MR IRELAND SAYS HE PLANS TO BE BACK IN HIS ORIGINAL OFFICE LOCATED THREE BLOCKS FROM THE RIVER BY EARLY OCTOBER HE RECENTLY GOT APPROVAL FOR A 500000 SBA DISASTER LOAN TO HELP HIS COMPANY'S LONGTERM RECOVERY AT LEAST THE COMPANY GOT ONE CONSOLATION PRIZE OUT OF THE WHOLE DISASTROUS EXPERIENCE DEMAND HAS SURGED FOR ITS INDUSTRIAL PRESSURE WASHERS FLOOR SCRUBBERS AND OTHER CLEANING PRODUCTS STEVEN MANUFACTURING CO A TOY MAKER LOCATED ON THE MISSOURI RIVER IN HERMANN MO SAW ITS FACTORY DELUGED WITH NINE FEET OF WATER WHEN ITS FLOOD WALL BROKE WITHIN TWO WEEKS THE COMPANY'S 150 EMPLOYEES WERE BACK AT WORK IN SEVERAL TEMPORARY LOCATIONS IN NEARBY BIG SPRINGS MO BUT THE COMPANY HAS TO GET THEM TO AND FROM WORK EACH DAY BY BOAT ACROSS THE RIVER BECAUSE THE TOWN'S MAIN ROAD STILL IS FLOODED THIS IS OUR PEAK TIME FOR GETTING READY FOR CHRISTMAS SAYS STEVEN MANUFACTURING PRESIDENT TIM FORD SANTA'S ELVES ARE HARD AT WORK A LITTLE WET BUT HARD AT WORK MR FORD SAYS HE IS APPLYING FOR THE MAXIMUM SBA DISASTER LOAN AS WELL AS A GRANT AND A LOAN THROUGH THE STATE TO HELP COVER HIS LOSSES WHICH EXCEEDED HIS FLOOD INSURANCE COVERAGE AS ONE OF THE MAIN FEDERAL AGENCIES RESPONSIBLE FOR DISASTER RELIEF THE SBA HAS BEEN STRETCHED BY A STRING OF UPHEAVALS HURRICANE HUGO ON THE EAST COAST IN 1989 WAS FOLLOWED BY THE BIG CALIFORNIA EARTHQUAKE THE SAME YEAR A LARGE BRUSH FIRE IN OAKLAND CALIF IN 1990 CREATED MORE DEMAND FOR DISASTER HELP LAST YEAR SBA OFFICIALS RESPONDED TO THE LOS ANGELES RIOTS HURRICANE ANDREW IN FLORIDA HURRICANE INIKI IN HAWAII AND FOUR TYPHOONS IN GUAM A US TERRITORY LAST DECEMBER AND JANUARY A HUGE COASTAL STORM HIT THE NORTHEAST FOLLOWED BY THIS SUMMER'S FLOOD IN THE MIDWEST BECAUSE OF ALL THE DISASTERS FISCAL 1993 IS EXPECTED TO SET A RECORD FOR THE DOLLAR AMOUNT OF SBA DISASTER LOANS SO FAR THIS FISCAL YEAR THE SBA HAS APPROVED 50000 LOANS TOTALING 14 BILLION THE TOTAL INCLUDES MOST OF THE LOANS MADE TO VICTIMS OF HURRICANES ANDREW AND INIKI AS WELL AS THE COASTAL STORM AND THE FLOOD AS A NEW FISCAL YEAR BEGINS OCT 1 MOST LOANS TO THE HURRICANE VICTIMS WEREN'T APPROVED UNTIL THE BEGINNING OF THIS FISCAL YEAR THIS YEAR'S LOAN TOTAL IS EXPECTED TO EXCEED THE 16 BILLION IN LOANS AFTER HURRICANE AGNES IN 1972 THE FIGURE WAS SO LARGE THAT YEAR PARTLY BECAUSE THE GOVERNMENT THEN FORGAVE THE FIRST 5000 OF EACH LOAN AND APPLICANTS RUSHED TO FILL IN THE FORMS THE GOVERNMENT QUICKLY STOPPED BEING SO FORGIVING TODAY MOST SBA DISASTER LOANS CARRY A 4 INTEREST RATE LOANS FOR PHYSICAL DAMAGE ABOVE 10000 AND ECONOMIC INJURY LOANS OF MORE THAN 5000 REQUIRE SOME FORM OF COLLATERAL USUALLY A LIEN ON THE BORROWER'S HOME OR BUSINESS REAL ESTATE IF THE PROPERTY IS LOCATED IN A FLOOD PLAIN THE BORROWER ALSO MUST PURCHASE FEDERAL FLOOD INSURANCE THROUGH THE FEDERAL EMERGENCY MANAGEMENT AGENCY WHEN DISASTERS FIRST OCCUR FEMA IS RESPONSIBLE FOR COORDINATING IMMEDIATE RELIEF SUCH AS EVACUATING AND SHELTERING VICTIMS THE SBA IS CHARGED WITH CARING FOR LONGERTERM NEEDS INCLUDING LOANS TO BOTH HOMEOWNERS AND BUSINESSES SUFFERING PROPERTY DAMAGE AND FINANCIAL LOSSES SEVERAL OTHER FEDERAL DEPARTMENTS ALSO PROVIDE DISASTER ASSISTANCE FOR INSTANCE THE AGRICULTURE DEPARTMENT'S FARMERS HOME ADMINISTRATION HAS PROGRAMS TO REPAIR DAMAGE TO FARMS AND LOANS TO COVER ECONOMIC LOSSES THE LABOR DEPARTMENT OFFERS HELP TO THOSE OUT OF WORK BECAUSE OF DISASTERS STATE AND LOCAL AGENCIES TRY TO COORDINATE THEIR EFFORTS WITH THE FEDERAL GOVERNMENT MISSOURI'S DEPARTMENT OF ECONOMIC DEVELOPMENT STARTED ITS OWN BUSINESS LOAN PROGRAM LAST WEEK TO COVER SMALLBUSINESS LOSSES THAT WEREN'T MET WITH SBA LOANS 9308170147 930817 CHEMICAL BANKING MUTUAL FUNDS NEW YORK CHEMICAL BANKING CORP LAUNCHED ITS FIRST GROUP OF BOND AND EQUITY MUTUAL FUNDS HANOVER INVESTMENT FUNDS CHEMICAL ALREADY SELLS SIX MONEY MARKET MUTUAL FUNDS WITH ASSETS OF MORE THAN 3 BILLION THE NEW FUNDS ARE SHORT TERM US GOVERNMENT FUND US GOVERNMENT SECURITIES FUND BLUE CHIP GROWTH FUND AND SMALL CAPITALIZATION GROWTH FUND CHEMICAL WILL SELL THE FUNDS THROUGH ITS OWN OFFICES AS WELL AS SOME BROKERAGE HOUSES 9308170146 930817 INTERNATIONAL FINNISH INFLATION RATE HELSINKI FINLAND FINLAND'S YEARONYEAR INFLATION RATE IN JULY WAS 21 THE SAME AS IN THE PREVIOUS MONTH BUT DOWN FROM 26 IN JULY 1992 THE CENTRAL STATISTICAL OFFICE SAID DURING THE 12 MONTHS ENDING IN JULY TRAFFIC COSTS INCREASED THE MOST BY 65 THE BUREAU SAID HOUSING COSTS WENT DOWN 28 AND FOOD COSTS 03 9308170145 930817 FINANCING BUSINESS VALHI INC VALHI INC DALLAS SAID ITS VALCOR INC UNIT IS REDUCING ITS PROPOSED PUBLIC OFFERING OF SENIOR NOTES DUE 2003 TO 75 MILLION PRINCIPAL AMOUNT FROM 125 MILLION THE COMPANY ATTRIBUTED THE REDUCTION TO THE COMPLETION LAST MONTH OF A 90 MILLION BANK CREDIT LINE BY VALCOR'S MEDITE CORP UNIT VALHI SAID IT WILL RECEIVE 50 MILLION FROM THE OFFERING PROCEEDS TO RETIRE DEBT THE REMAINDER WILL BE USED BY VALCOR FOR GENERAL CORPORATE PURPOSES THE OFFERING IS BEING UNDERWRITTEN BY MORGAN STANLEY & CO AND MERRILL LYNCH & CO VALHI HAS INTERESTS IN THE REFINED SUGAR INDUSTRY AND THROUGH VALCOR IN THE FOREST PRODUCTS FAST FOOD AND HARDWARE PRODUCTS INDUSTRIES 9308170144 930817 WE'LL REFRAIN FROM COMMENTING ABOUT THE SOURCE OF ALL THE WIND BY LAWRENCE INGRASSIA STAFF REPORTER OF THE WALL STREET JOURNAL LONDON IS WIND POWER POLITICALLY INCORRECT THAT'S WHAT SOME BRITONS ARGUE FORESTS OF THESE INFERNAL CONTRAPTIONS ARE SPRINGING UP ON OUR PRISTINE PENNINE MOORS WROTE SIR BERNARD INGHAM VICE PRESIDENT OF THE CONSERVATION GROUP COUNTRY GUARDIAN AND FORMER AIDE TO FORMER PRIME MINISTER MARGARET THATCHER IN A RECENT COLUMN IN THE HEBDEN BRIDGE TIMES UNLESS WE BLOW UP IN REVOLT WE SHALL FIND EVERY MOUNTAIN HILL AND CLIFF COLONIZED BY FLAILING PYLONS GERTRUDE ROBINSON A MEMBER OF THE SOUTH PENNINES ASSOCIATION ADDS WE LIKE TO THINK OF THE PENNINE HILLS IN NORTHERN ENGLAND AS A SPIRITUAL RETREAT YOU SEE THESE HILLS UNFOLDING ONE AFTER ANOTHER WITH THE MOORTOPS COVERED WITH HEATHER THE IDEA OF HAVING ALL THESE HILLS DOTTED WITH WIND TURBINES IS ANATHEMA TO A LOT OF PEOPLE BALDERDASH SAY OTHER ENVIRONMENTALISTS WIND FARMS ARE PLEASANT AND QUIET ARGUES FIONA WEIGHTMAN A RENEWABLEENERGY EXPERT AT FRIENDS OF THE EARTH MOREOVER SHE ADDS THEY ARE MUCH FRIENDLIER TO THE ENVIRONMENT THAN NUCLEAR POWER PLANTS FOR WHICH SIR BERNARD HAS BEEN A PAID CONSULTANT AND FOSSIL FUEL PLANTS OR AS ONE WINDPOWER PROPONENT SAID IN A LETTER TO ANOTHER LOCAL NEWSPAPER WHICH IS WORSE NUCLEAR TERRORISM CHILDHOOD CANCERS A NUCLEAR DUSTBIN BRITAIN AND HUNDREDS OF THOUSANDS OF YEARS OF RADIOACTIVE LEGACY OR A FEW WIND TURBINES WHICH CAN BE DISMANTLED AFTER 20 YEARS THE DEBATE HEATED UP WITH THE OPENING OF A SECOND WIND FARM IN NORTHERN ENGLAND'S PENNINE HILLS WHERE CONSTANT WINDS MAKE FOR GOOD POWER GENERATION BOTH HAVE ABOUT TWO DOZEN WIND TURBINES EACH 105 FEET HIGH IN ADDITION WE HAVE 100 TURBINES IN THE PIPELINE AT THE MOMENT AND 100 MORE LIKELY MS ROBINSON SAYS ONCE YOU GET ONE WIND FARM THEY GET THE IDEA THAT IT'S ALREADY MESSED UP A BIT MORE WON'T MATTER BUT WHAT ABOUT THE ENVIRONMENTAL POLLUTION CAUSED BY CONVENTIONAL POWER PLANTS THE MONEY WOULD BE BETTER SPENT ON INSULATING HOUSES AND SAVING ELECTRICITY THAN ON WIND FARMS SHE MAINTAINS YORKSHIRE WINDPOWER OPERATOR OF ONE OF THE WIND FARMS SAYS ONLY THAT ITS FARM HAS BEEN CAREFULLY CONSTRUCTED TO MINIMIZE THE IMPACT ON THE ENVIRONMENT THE HEBDEN BRIDGE TIMES MEANWHILE HAS STOPPED RUNNING LETTERS ON THE ISSUE BECAUSE THEY WERE CROWDING OUT LETTERS ON EVERYTHING ELSE 9308170143 930817 COLUMBIA GAS REORGANIZATION WILMINGTON DEL COLUMBIA GAS SYSTEM INC SAID THE US BANKRUPTCY COURT OF DELAWARE EXTENDED ITS RIGHT ALONG WITH ITS SUBSIDIARY COLUMBIA GAS TRANSMISSION CORP TO EXCLUSIVELY FILE REORGANIZATION PLANS UNTIL NOV 22 THE TWO COMPANIES HAVE BEEN OPERATING AS DEBTORSINPOSSESSION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE SINCE JULY 31 1991 9308170142 930817 MARKETING MATTEL STEPS UP TOY PROMOTIONS FOR CHRISTMAS BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES MATTEL INC LOOKING TO ENSURE THAT PAINT N DAZZLE BARBIE EARRING MAGIC KEN AND THEIR FRIENDS WON'T BE SPENDING CHRISTMAS DAY ON AISLE 7 IS INITIATING ONE OF THE BIGGEST TOYDISCOUNT AND MARKETING PROGRAMS EVER IN PREPARATION FOR ANOTHER TOUGH HOLIDAY RETAILING SEASON THE TOY MAKER PLANS SOON TO BEGIN DISTRIBUTING MORE THAN 15 BILLION COUPONS OFFERING DISCOUNTS OF BETWEEN 1 AND 10 APIECE ON ITS TOYS MATTEL IS ALSO STEPPING UP ITS CROSSPROMOTIONS WITH COMPANIES SUCH AS PHILIP MORRIS COS' KRAFT GENERAL FOODS AND THE HOME VIDEO UNITS OF WALT DISNEY CO AND FOX INC TO REACH MORE SHOPPERS AND GET THE MATTEL BRAND NAME OUT IN HIGHTRAFFIC SUPERMARKET AND VIDEOSTORE VENUES WHERE IT HASN'T HAD A PRESENCE BEFORE IT GIVES US AN OPPORTUNITY TO BROADEN OUR MESSAGE AND REALLY DELIVER IT WHERE OUR CUSTOMERS ARE THEY GO TO TOY STORES SIX OR SEVEN TIMES A YEAR BUT THEY GO TO THE GROCERY STORE 60 OR 70 TIMES A YEAR SAID RICHARD DEHERDER MATTEL'S VICE PRESIDENT MARKETING SERVICES WHAT WE'RE DOING IS CREATING NEW REASONS TO COME INTO THE TOY DEPARTMENT EVERY MONTH THE DISCOUNT COUPONS WILL BE HANDED OUT IN PRODUCTS OF MATTEL'S MARKETING PARTNERS BEGINNING THIS MONTH WITH A TIEIN TO MCDONALD'S CORP'S HAPPY MEALS FOR CHILDREN MATTEL SAID THE HAPPY MEALS PROMOTION ALONE WILL ALLOW IT TO REACH MORE THAN 90 OF ITS TARGET KID AUDIENCE BY DOLING OUT MINIATURE TWINKLE LIGHTS BARBIES HOT WHEELS RACING CARS AND THE ALLIMPORTANT DISCOUNT COUPONS WITH THE HAMBURGERS MATTEL HOPES TO GET KIDS CLAMORING FOR ITS TOYS COME CHRISTMASTIME IT GIVES A DIRECT INCENTIVE TO THE CONSUMER TO PURCHASE OUR PRODUCT INSTEAD OF ANOTHER MR DEHERDER SAID THOUGH MATTEL HAS USED COUPONS TO DRIVE CHRISTMAS SALES IN PRIOR YEARS THIS SEASON'S PUSH IS MUCH BIGGER RATHER THAN LIMITING THE DISCOUNTS TO ITS TOPSELLING BARBIE AND HOT WHEELS LINES AS IT HAS DONE IN PRIOR YEARS MATTEL WILL BE PROMOTING NEARLY ALL OF ITS PRODUCTS FROM LI'L MISS CANDY STRIPE 2 OFF TO BRUNO THE BAD DOG TRUCK 5 OFF ANOTHER BIG DIFFERENCE IS TIMING MATTEL NORMALLY DOESN'T LAUNCH ITS CHRISTMAS PROMOTIONS UNTIL NOVEMBER BUT THIS YEAR IT'S STARTING EARLY WITH MAJOR MARKETING PROGRAMS PLANNED FOR EACH MONTH UNTIL DECEMBER AFTER MCDONALD'S THIS MONTH MATTEL WILL HAVE SEPTEMBER CROSSPROMOTIONS WITH KRAFT'S KOOLAID BRAND AND A DISNEY SNOW WHITE MUSICAL VIDEO TIED TO MATTEL'S 16 SNOW WHITE FASHION DOLL OCTOBER WILL BRING A CROSSPROMOTION OF MATTEL'S AVIVA SPORTS TOYS WITH FOX'S HOME VIDEO RELEASE OF THE SANDLOT AND IN NOVEMBER AND DECEMBER HALLMARK CARDS INC WILL HAWK BARBIE ORNAMENTS AND A SWEEPSTAKES TO WIN A BARBIE DREAM HOUSE ALL OF THIS WILL BE SUPPORTED BY 50 MILLION IN TELEVISION ADVERTISING PAID FOR BY MATTEL'S PROMOTIONAL PARTNERS WHICH IS IN ADDITION TO THE REGULAR ADS THE COMPANY PRODUCES FOR INDIVIDUAL TOYS IN RETURN MATTEL WILL PROMOTE ITS PARTNERS' BRANDS WITH DISPLAYS IN TOY STORES MATTEL'S PUSH COMES AT A TIME WHEN TOY MAKERS ARE LESS THAN EBULLIENT WITH THEIR CHRISTMAS WISHES THERE'S NO OPTIMISM JUST MORE OF THE SAME SAID RICHARD SALLIS PRESIDENT OF PLAYMATES TOYS INC MAKER OF THE TEENAGE MUTANT NINJA TURTLES AND STAR TREK ACTION FIGURES I THINK THAT EVERYBODY IS A LITTLE NERVOUS ABOUT RETAIL SALES IN GENERAL AND CHRISTMAS IN PARTICULAR ASSERTED GARY M JACOBSON AN ANALYST WITH KIDDER PEABODY & CO IN NEW YORK MATTEL'S APPROACH IS TO BE AGGRESSIVE RATHER THAN SIT BACK AND SEE WHAT HAPPENS MR DEHERDER SAID THAT ALTHOUGH WE THINK THE GENERAL ECONOMY IS GOING TO CONTINUE TO BE VERY DIFFICULT MATTEL IS HOPING FOR ITS FIFTH CONSECUTIVE YEAR OF RECORD SALES AND EARNINGS THE PROMOTIONAL PROGRAM IS JUST ONE ELEMENT TO MAKE SURE THAT HAPPENS HE ADDED INDUSTRY ANALYSTS EXPECT MATTEL TO EARN AROUND 170 A SHARE THIS YEAR UP FROM 143 A SHARE IN 1992 WHEN NET INCOME WAS 1439 MILLION 9308170141 930817 INTERNATIONAL ITALY'S ELECTRICITY USE FELL IN JULY MILAN ITALIAN ELECTRICITY USE FELL 05 IN JULY TO 209 BILLION KILOWATTHOURS FROM THE YEAREARLIER PERIOD ACCORDING TO FIGURES RELEASED MONDAY BY STATE ELECTRICITY UTILITY ENEL ENEL SAID THAT IN THE FIRST SEVEN MONTHS OF 1993 ELECTRICITY DEMAND FELL 03 FROM THE SAME PERIOD OF 1992 OR 02 ON AN ADJUSTED BASIS IN JULY ELECTRICITY USE BY INDUSTRY SLUMPED 3 FROM JULY 1992 WHILE CIVILIAN CONSUMPTION ROSE 2 9308170140 930817 FORD RECALLS 43000 ESCORTS TO REPLACE EMISSIONS PART DETROIT FORD MOTOR CO IS RECALLING 43000 ESCORT VEHICLES BUILT FOR THE CALIFORNIA MARKET TO REPLACE THEIR CATALYTIC CONVERTERS SEPARATELY THE AUTO MAKER ALSO IS EXTENDING WARRANTY COVERAGE FOR FUEL PUMPS ON 1988 AND 1989 MODEL ALLWHEELDRIVE TEMPO/TOPAZ VEHICLES FORD SAID THE 1989 AND 1990 MODEL ESCORTS WERE UNABLE TO MEET CALIFORNIA STANDARDS FOR OXIDE AND NITROGEN EMISSIONS FORD IS INSTRUCTING OWNERS OF THOSE VEHICLES TO BRING THEIR CARS TO DEALERSHIPS TO HAVE THE CATALYTIC CONVERTERS REPLACED FOR FREE THE AUTO MAKER ALSO SAID THE WARRANTY EXTENSION ON TEMPO/TOPAZ VEHICLES COVERS AN INTERNAL FUEL PUMP SEAL THAT MAY WEAR PREMATURELY IF THE SEAL WEARS OUT THE AFFECTED VEHICLE MAY HAVE TROUBLE RESTARTING WHEN WARM OR IT MAY GENERATE NOTICEABLE FUELPUMP NOISE THE WARRANTY EXTENSION COVERS THE FUEL PUMP FOR SIX YEARS OR 60000 MILES AND AFFECTS 31400 TEMPO/TOPAZ AUTOMOBILES 1062 OF WHICH ARE LOCATED IN CANADA 9308170139 930817 NBD SLATES STOCK BUYBACK DETROIT THE BOARD OF NBD BANCORP AUTHORIZED THE REPURCHASE OF AS MANY AS SEVEN MILLION SHARES OF ITS COMMON PURCHASES WOULD BE MADE FROM TIME TO TIME ON THE OPEN MARKET OR IN PRIVATELY NEGOTIATED TRANSACTIONS SHARES PURCHASED UNDER THE AUTHORIZATION IF ANY WOULD BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING EMPLOYEE STOCK AWARD PROGRAMS AND ACQUISITIONS AT JUNE 30 THE BANKING CONCERN HAD 1606 MILLION COMMON SHARES OUTSTANDING 9308170138 930817 NASDAQ TRADING NETWORK TO BE INSTALLED BY MCI NEW YORK THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AUTOMATED QUOTATIONS STOCK MARKET SELECTED MCI COMMUNICATIONS CORP TO PROVIDE AND MANAGE A HIGHSPEED ELECTRONIC TRADING NETWORK THAT IS PLANNED TO MORE THAN TRIPLE NASDAQ'S CURRENT CAPACITY ROBERT BLOOM NASDAQ'S DIRECTOR OF TELECOMMUNICATIONS SAID THE CURRENT SYSTEM HAS A 450 MILLION SHARE CAPACITY THE NEW SYSTEM WILL HAVE A CAPACITY TO HANDLE 800 MILLION SHARES A DAY HE SAID MORE IMPORTANTLY IT WILL BE A VERY FLEXIBLE SYSTEM AND COULD HANDLE UP TO A BILLION SHARES A DAY THE NASDAQ'S AVERAGE DAILY VOLUME IS CURRENTLY ABOUT 245 MILLION SHARES A SPOKESMAN REPORTED TOTAL NASDAQ MARKET VOLUME REACHED A RECORD 3432 MILLION SHARES ON MAY 20 MCI WILL INSTALL OPERATE MANAGE AND SERVICE THE TRADING NETWORK CONNECTING TRADING TERMINALS WORLDWIDE TO NASDAQ'S DATA CENTERS MCI SAID THE SIXYEAR OUTSOURCING AGREEMENT IS ESTIMATED AT 150 MILLION MCI HAS SELECTED DIGITAL EQUIPMENT CORP TO PROVIDE SPECIALIZED SOFTWARE HARDWARE AND SERVICES FOR THE NETWORK THE NETWORK WILL BE INSTALLED IN STAGES BEGINNING IN NEXT YEAR'S FIRST QUARTER WITH AN ESTIMATED COMPLETION OF THIRD QUARTER 1995 9308170137 930817 MCCAW CEO MAY BECOME BILLIONAIRE WITH MERGER KIRKLAND WASH CRAIG MCCAW WOULD BE A BILLIONAIREON PAPER IF HIS COMPANY'S MERGER AGREEMENT WITH AMERICAN TELEPHONE & TELEGRAPH CO WERE CLOSED AT CURRENT STOCK PRICES AND TOGETHER WITH HIS BROTHERS THE CHIEF EXECUTIVE OF MCCAW CELLULAR COMMUNICATIONS CORP WOULD CONTROL A FAMILY FORTUNE IN A LEAGUE WITH THOSE OF SOME BIG SHAREHOLDERS IN ANOTHER BOOMING WASHINGTON COMPANY MICROSOFT CORP MR MCCAW OWNS 141 MILLION SHARES OF MCCAW ABOUT 65 OF THE COMPANY'S 216 MILLION OUTSTANDING SHARES PLUS ANOTHER 26 MILLION OPTIONS AND SHARES HELD IN TRUST SWAPPED ONEFORONE AS THE DEAL STIPULATES WITH AT&T STOCK CLOSING YESTERDAY AT 6075 A SHARE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING THOSE TOTAL 167 MILLION MCCAW SHARES AND OPTIONS WOULD BE VALUED AT JUST OVER 1 BILLION MR MCCAW'S PAPER FORTUNE IS A FAR CRY FROM THAT OF MICROSOFT CHAIRMAN WILLIAM GATES'S APPROXIMATELY 6 BILLION STAKE IN HIS REDMOND WASH SOFTWARE COMPANY BUT THE MCCAW FAMILY'S TOTAL EQUITY WOULD MAKE IT AS WEALTHY ON PAPER AS MICROSOFT COFOUNDER PAUL ALLEN WHO OWNS MICROSOFT STOCK VALUED AT 27 BILLION AND MICROSOFT EXECUTIVE VICE PRESIDENT STEVEN BALLMER WHO HAS A 12 BILLION STAKE IN THE SOFTWARE GIANT THREE OF MR MCCAW'S BROTHERS JOHN KEITH AND BRUCE ALL OF THEM MCCAW DIRECTORS AMONG THEM OWN 306 MILLION MCCAW SHARES AND ANOTHER 330000 IN MCCAW OPTIONS AND SHARES HELD IN TRUST TOGETHER WITH CRAIG MCCAW'S SHARES THE FAMILY'S STOCK WOULD BE VALUED AT 29 BILLION AT AT&T STOCK'S CLOSING PRICE YESTERDAY 9308170136 930817 HONG KONG'S REEXPORT TRADE HONG KONG REEXPORTS CONSTITUTED A HIGHER PROPORTION OF HONG KONG'S TRADE IN THE FIRST HALF GOBBLING UP 78 OF TOTAL EXPORTS THE CENSUS AND STATISTICS DEPARTMENT SAID THE DEPARTMENT ALSO SAID REEXPORTS MADE UP 38 OF THE VALUE OF ALL EXTERNAL TRADE IN THE HALF IN THE FIRST HALF OF 1992 REEXPORTS WERE 74 OF EXPORTS AND 36 OF TOTAL TRADE CHINA ACCOUNTED FOR THE LARGEST PORTION OF HONG KONG'S REEXPORTED GOODS THOSE THAT ENTER THE TERRITORY AND LEAVE WITHOUT MATERIAL CHANGE OF THE 376 BILLION HONG KONG DOLLARS US4849 BILLION OF REEXPORTED GOODS THAT PASSED THROUGH THE TERRITORY 87 OR HK329 BILLION WORTH INVOLVED CHINA REEXPORTS ORIGINATING FROM CHINA WERE 56 OF HONG KONG'S REEXPORT VALUE WHILE THOSE GOODS ON THEIR WAY TO CHINA WERE 34 THE GOVERNMENT SAID MUCH OF THE REEXPORT TRADE INVOLVING CHINA IS RELATED TO OUTWARD PROCESSING AS RAW MATERIALS AND SEMIMANUFACTURED GOODS ARE EXPORTED TO CHINA FOR FINISHING THE FINAL PRODUCT ALSO PASSES THROUGH HONG KONG 9308170135 930817 BANK OF MONTREAL TO SELL UNIT MONTREAL BANK OF MONTREAL SAID IT AGREED TO SELL ITS BRAZILIAN WHOLESALE BANKING UNIT BANCO DE MONTREAL SA TO FRANCE'S CREDIT COMMERCIAL DE FRANCE SA TERMS WEREN'T DISCLOSED KEITH DORRICOTT VICE CHAIRMAN OF BANK OF MONTREAL SAID THE BRAZILIAN UNIT PROVIDES FOREIGN EXCHANGE PENSION MANAGEMENT MONEYMARKET SERVICES AND OTHER SERVICES AND HAS TOTAL ASSETS OF MORE THAN US600 MILLION MR DORRICOTT SAID THE SALE SUBJECT TO APPROVAL BY BRAZIL'S CENTRAL BANK IS PART OF THE BANK'S PLAN TO FOCUS MORE ON ITS NORTH AMERICAN OPERATIONS WE DON'T WANT TO BE IN LOCAL BUSINESS IN OTHER PARTS OF THE WORLD MR DORRICOTT SAID THE BANK WILL MAINTAIN A REPRESENTATIVE OFFICE IN BRAZIL FOR TRADE FINANCE 9308170134 930817 WHO'S NEWS STATORDYNE CORP STATORDYNE CORP ANAHEIM CALIF KENNETH A RUCK WAS ELECTED A DIRECTOR INCREASING THE BOARD TO SIX MR RUCK 58 YEARS OLD IS PRESIDENT OF PEAC CORP OF COSTA MESA CALIF STATORDYNE DEVELOPS PROPRIETARY PRODUCTS FOR THE POWER QUALITY STANDBY AND NOBREAK POWER SERVICE INDUSTRIES 9308170133 930817 GM'S HUGHES UNIT GETS ORDER LOS ANGELES HUGHES AIRCRAFT CO A UNIT OF GENERAL MOTORS CORP SAID A GROUP OF COMPANIES INCLUDING A CANADIAN UNIT OF HUGHES WAS SELECTED TO BUILD A 50 MILLION CANADIAN DOLLAR US38 MILLION AIR TRAFFIC CONTROL SYSTEM FOR SWITZERLAND HUGHES SAID ITS HUGHES CANADA'S SYSTEMS DIVISION IN RICHMOND BRITISH COLUMBIA WILL BUILD MOST OF THE SYSTEM CALLED AIR TRAFFIC DATA PROCESSING AND TRANSFER THE AWARD WAS MADE BY SWISSCONTROL A PRIVATE COMPANY RESPONSIBLE FOR SWITZERLAND'S AIR TRAFFIC CONTROL SYSTEM HUGHES SAID IT WILL SET UP A GENERAL CONTRACTOR ENGINEERING TEAM IN GENEVA TO WORK WITH SWISSCONTROL STAFF IN CREATING THE NEW SYSTEM 9308170132 930817 WHO'S NEWS PANCHO'S MEXICAN BUFFET INC PANCHO'S MEXICAN BUFFET INC FORT WORTH TEXAS JESSE ARRAMBIDE III WAS ELECTED CHAIRMAN OF THIS OPERATOR OF BUFFETSTYLE RESTAURANTS SUCCEEDING HIS FATHER JESSE ARRAMBIDE WHO DIED ON JULY 31 AT AGE 67 MR ARRAMBIDE 41 WAS VICE PRESIDENT OPERATIONS 9308170131 930817 WHO'S NEWS HOSPITAL CORP OF AMERICA HOSPITAL CORP OF AMERICA NASHVILLE TENN ANNE L BRYANT 44YEAROLD EXECUTIVE DIRECTOR OF THE AMERICAN ASSOCIATION OF UNIVERSITY WOMEN WAS ELECTED A DIRECTOR OF THIS HOSPITAL COMPANY EXPANDING THE BOARD TO EIGHT MEMBERS 9308170130 930817 FORD GROUNDBREAKING DEARBORN MICH FORD MOTOR CO SAID IT WILL HOLD A GROUNDBREAKING TODAY FOR A CRANKSHAFT FORGING PLANT IN WOODHAVEN MICH ITS FIRST NEW PLANT IN THE US SINCE 1980 THE AUTO MAKER DECLINED TO SAY WHEN THE PLANT WILL BE COMPLETED OR HOW MANY PEOPLE IT WILL EMPLOY THE PLANT IS LIKELY TO BE PERCEIVED AS A GOODWILL GESTURE BY THE UNITED AUTO WORKERS UNION WHICH IS CURRENTLY NEGOTIATING A NEW THREEYEAR CONTRACT WITH FORD TOP LABOR NEGOTIATORS FOR FORD AND THE UAW WILL ATTEND THE GROUNDBREAKING 9308170129 930817 INTERNATIONAL PRICES DROP FOR CHILE'S EXPORTS SANTIAGO CHILE A DROP IN WORLD MARKET PRICES FOR SOME KEY EXPORT ITEMS WILL COST CHILE AROUND 800 MILLION THIS YEAR CENTRAL BANK PRESIDENT ROBERTO ZAHLER SAID THE SITUATION WILL LEAD TO A TRADE DEFICIT OF 500 MILLION TO 700 MILLION ACCORDING TO THE GOVERNMENT COMPARED WITH A 249 BILLION SURPLUS IN 1992 THROUGH JULY 15 THE COUNTRY'S TRADE BALANCE SHOWED A DEFICIT OF 1649 MILLION COMPARED WITH A SURPLUS OF 926 MILLION IN THE YEAREARLIER PERIOD ACCORDING TO THE CENTRAL BANK THE PROBLEM HAS BEEN CAUSED BY A STEEP DROP IN THE PRICES OF COPPER FRUIT FISH MEAL AND CELLULOSE WHICH ARE AMONG CHILE'S LARGEST FOREIGNCURRENCY EARNERS 9308170128 930817 WHO'S NEWS WESTERN DIGITAL CORP WESTERN DIGITAL CORP IRVINE CALIF D SCOTT MERCER WAS NAMED TO THE NEW POST OF EXECUTIVE VICE PRESIDENT CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER MR MERCER 41 YEARS OLD HAS BEEN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SINCE 1991 9308170127 930817 INTERNATIONAL BAA UK RAILWAYS SIGN PACT LONDON THE UK AIRPORT OPERATOR BAA PLC SAID IT SIGNED A PACT THAT WILL ALLOW WORK TO START ON AN EXPRESS RAIL LINK FROM ITS HEATHROW TERMINALS TO CENTRAL LONDON BAA SAID IN A NEWS RELEASE THAT THE AGREEMENT WITH STATECONTROLLED BRITISH RAILWAYS BOARD INVOLVES A RAIL LINK TO LONDON'S PADDINGTON STATION THE PROJECT IS EXPECTED TO TAKE FOUR YEARS TO COMPLETE AT A COST OF ABOUT 300 MILLION 4385 MILLION THE SERVICE IS EXPECTED TO BE OPERATIONAL BY DECEMBER 1997 AND TRAFFIC IS FORECAST AT OVER SIX MILLION PASSENGERS A YEAR 9308170126 930817 WHO'S NEWS LYONDELL PETROCHEMICAL CO LYONDELL PETROCHEMICAL CO HOUSTON MIKE R BOWLIN WAS NAMED CHAIRMAN SUCCEEDING ROBERT E WYCOFF WHO RESIGNED FOLLOWING HIS RETIREMENT AS PRESIDENT AND CHIEF OPERATING OFFICER OF ATLANTIC RICHFIELD CO MR BOWLIN 50 YEARS OLD IS PRESIDENT AND CHIEF OPERATING OFFICER OF ATLANTIC RICHFIELD WILLIAM E WADE EXECUTIVE VICE PRESIDENT OF ARCO WAS ELECTED TO LYONDELL'S BOARD FILLING THE VACANCY LEFT BY MR WYCOFF ARCO OWNS 499 OF LYONDELL'S SHARES OUTSTANDING 9308170125 930817 WHO'S NEWS INLAND STEEL INDUSTRIES INC INLAND STEEL INDUSTRIES INC CHICAGO DALE E WIERSBE 43 YEARS OLD CURRENTLY VICE PRESIDENT PLANNING FOR INLAND STEEL FLAT PRODUCTS CO WAS NAMED PRESIDENT OF INLAND STEEL BAR CO A SUBSIDIARY OF THIS HOLDING COMPANY'S INLAND STEEL CO UNIT HIS APPOINTMENT BECOMES EFFECTIVE NOV 1 MR WIERSBE SUCCEEDS DR REDIGER 59 FOUNDING PRESIDENT OF THE STEELBAR UNIT WHO IS TO RETIRE DEC 31 AFTER 35 YEARS OF SERVICE NO ONE HAS YET BEEN NAMED TO SUCCEED MR WIERSBE 9308170124 930817 CABLETRON PLANS SALE OF TWO MILLION SHARES IN A PUBLIC OFFERING ROCHESTER NH CABLETRON SYSTEMS INC FILED FOR A PUBLIC OFFERING OF TWO MILLION SHARES TO BE SOLD BY COMPANY INSIDERS THE COMPUTER NETWORK EQUIPMENT MAKER SAID THE SHARES WILL BE OFFERED BY S ROBERT LEVINE CHIEF EXECUTIVE CRAIG R BENSON CHAIRMAN KENNETH LEVINE NATIONAL SALES DIRECTOR AND VARIOUS FAMILY TRUSTS CABLETRON HAS 284 MILLION SHARES OUTSTANDING IN THE OFFERING S ROBERT LEVINE'S STAKE WILL DROP TO 17 FROM 205 MR BENSON'S OWNERSHIP WILL FALL TO 14 FROM 168 AND KENNETH LEVINE THE CHIEF EXECUTIVE'S YOUNGER BROTHER WILL RETAIN 26 DOWN FROM 31 CABLETRON SAID MERRILL LYNCH & CO NOMURA SECURITIES INTERNATIONAL INC AND SALOMON BROTHERS INC ARE COMANAGERS OF THE OFFERING OF 16 MILLION SHARES IN THE US IT SAID MERRILL LYNCH NOMURA AND SALOMON UNITS ARE COMANAGERS FOR THE 400000 SHARES TO BE OFFERED OUTSIDE THE US UNDERWRITERS ALSO HOLD OPTIONS FOR AN ADDITIONAL 300000 SHARES FOR OVERALLOTMENTS IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CABLETRON SHARES WERE QUOTED AT 11275 DOWN 2375 9308170123 930817 MACY VIDEO NETWORK AIMED AT EMPLOYEES TO BE UNVEILED TODAY NEW YORK JUST A FEW MONTHS AFTER ANNOUNCING PLANS FOR A CABLE SHOPPING NETWORK RH MACY & CO HAS DECIDED TO LAUNCH AN INTERNAL VIDEO NETWORK MACY'S CHAIRMAN AND CHIEF EXECUTIVE MYRON E ULLMAN III WILL ADDRESS MANAGERS AND SALES PERSONNEL IN A SATELLITE HOOKUP WITH 123 STORES IN THE FIRST BROADCAST TODAY MACY EXPECTS TO HAVE MORE THAN 300 PROGRAMS A YEAR THE NETWORK WILL PROVIDE MORE THAN 60000 EMPLOYEES WITH INFORMATION ON NEW PRODUCTS CONSUMER PROMOTIONS AND TRAINING AND INCLUDE TWOWAY AUDIO SERVICE THE NETWORK IS DESIGNED AND INSTALLED BY FOCUS NETWORKS A DALLAS COMPANY 40OWNED BY FAIRCHILD PUBLISHING A UNIT OF CAPITAL CITIES/ABC INC 9308170122 930817 WHO'S NEWS CHEMICAL FINANCIAL CORP CHEMICAL FINANCIAL CORP MIDLAND MICH WILLIAM S STAVROPOULOS 54 YEARS OLD AND JAMES A CURRIE 34 WERE NAMED DIRECTORS OF THIS BANK HOLDING COMPANY THE APPOINTMENTS INCREASE THE BOARD'S SIZE TO EIGHT MEMBERS IN ANTICIPATION OF THE RETIREMENT NEXT YEAR OF 69YEAROLD CHAIRMAN GILBERT CURRIE MR STAVROPOULOS IS PRESIDENT AND CHIEF OPERATING OFFICER OF DOW CHEMICAL CO WHICH ALSO IS BASED IN MIDLAND MR CURRIE IS AN EDUCATOR AT OKEMOS HIGH SCHOOL IN MICHIGAN AND IS THE SON OF THE BANK HOLDING COMPANY'S CHAIRMAN A SPOKESMAN FOR CHEMICAL FINANCIAL SAID NO PLANS HAVE BEEN MADE FOR THE YOUNGER MR CURRIE TO ASSUME AN ADDITIONAL POST WITH THE COMPANY AFTER HIS FATHER'S RETIREMENT CHEMICAL'S DIRECTORS ARE REQUIRED TO RETIRE AT 70 9308170121 930817 FINANCING BUSINESS SNAPPLE BEVERAGE CORP SNAPPLE BEVERAGE CORP PROPOSED A 2FOR1 STOCK SPLIT SUBJECT TO SHAREHOLDER APPROVAL OF AN INCREASE IN AUTHORIZED SHARES TO 140 MILLION FROM 70 MILLION THE SPLIT IF APPROVED WOULD BE THE NATURAL BEVERAGE BOTTLER'S SECOND 2FOR1 SPLIT SINCE GOING PUBLIC IN DECEMBER AT 20 A SHARE THE VALLEY STREAM NY COMPANY WHICH HAS 608 MILLION SHARES OUTSTANDING PAID ITS FIRST 2FOR1 SPLIT JUNE 11 THE CURRENT SPLIT WOULD BE PAYABLE SEPT 24 TO SHARES OF RECORD SEPT 3 SNAPPLE CLOSED YESTERDAY AT 4375 UP 450 OR 11 IN OVERTHECOUNTER TRADING 9308170120 930817 RAWSTEEL PRODUCTION ROSE 16 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 16 LAST WEEK TO 1854000 TONS FROM 1825000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 925 FROM THE 1697000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 884 OF ITS CAPABILITY LAST WEEK COMPARED WITH 87 THE PREVIOUS WEEK AND 786 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9308170119 930817 BUSINESS BRIEF PHILIP MORRIS COS CIGARETTES TO BE PRODUCED IN CHINA UNDER VENTURE PACT PHILIP MORRIS COS NEW YORK SAID IT SIGNED A COOPERATION AGREEMENT WITH CHINA NATIONAL TOBACCO CORP TO MAKE AND MARKET CIGARETTES IN CHINA FOR BOTH DOMESTIC USE AND EXPORT SALES THE AGREEMENT CALLS FOR PHILIP MORRIS TO USE CHINA NATIONAL PRODUCTION FACILITIES TO PRODUCE THE CIGARETTES INCLUDING THE PRODUCTION OF MARLBORO CIGARETTES FOR SALE IN CHINA THE US CONSUMER PACKAGED GOODS CONCERN SAID IT HADN'T DETERMINED IF CIGARETTES MADE IN CHINA WOULD BE EXPORTED TO THE US PHILIP MORRIS WOULDN'T OUTLINE DETAILS OF THE JOINT VENTURE BUT THEY SAID IT WOULDN'T REQUIRE INITIAL CAPITAL INVESTMENT INSTEAD THE AGREEMENT IS INTENDED TO INTRODUCE TECHNOLOGY TRAINING AND HUMAN RESOURCES EXPERTISE TO CHINA NATIONAL'S TOBACCO OPERATIONS CHINA NATIONAL CHINA'S NATIONAL TOBACCO MONOPOLY PRODUCES MORE THAN 15 TRILLION CIGARETTES A YEAR 9308170118 930817 WHO'S NEWS KEYCORP KEYCORP ALBANY NY STEPHEN HEINE 34 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF A NEW UNIT KEYCORP INSURANCE MANAGEMENT CORP HE CONTINUES AS PRESIDENT AND CHIEF EXECUTIVE OF KEY BANK LIFE INSURANCE THE BANK HOLDING COMPANY FORMED THE UNIT TO CENTRALIZE ITS INSURANCE ACTIVITIES THE COMPANY WHICH OPERATES IN SEVERAL STATES SELLS CREDIT PROPERTY AND CASUALTY AND LIFE INSURANCE THROUGH ITS BRANCHES 9308170117 930817 PEPPERAND SALT I'D BE HAPPY MUCH FARTHER AWAY IS REALLY NOT ALL THAT HARD ASKED FOR THEIR BUBBLE GUM CARD WITH THE SPLEEN 9308170116 930817 INTERNATIONAL BRITISH COAL TO SHUT MORE MINES BUT EFFECTS FOR TORIES ARE UNCLEAR BY LAWRENCE INGRASSIA STAFF REPORTER OF THE WALL STREET JOURNAL LONDON LAST FALL WHEN 200000 PEOPLE MARCHED IN LONDON TO PROTEST THE CLOSING OF 31 OF BRITAIN'S 50 COAL MINES THE CONSERVATIVE GOVERNMENT BEAT A RETREAT AND SCALED BACK THE SHUTDOWN PLAN OR DID IT LESS THAN A YEAR AFTER THE PUBLIC OUTCRY AGAINST THE CLOSINGS STATEOWNED BRITISH COAL HAS CLOSED 19 UNPROFITABLE PITS AND WORD LEAKED LAST WEEK THAT AS MANY AS 15 MORE MAY BE SHUT IN THE MONTHS TO COME FOR A TOTAL OF 34 MINES OR MORE THAN ORIGINALLY PLANNED PEOPLE FEEL GRAVELY LET DOWN AND MISLED SAYS WILLIAM CASH A CONSERVATIVE MEMBER OF PARLIAMENT WHO WENT AGAINST HIS OWN PARTY TO FIGHT THE CLOSURES LAST YEAR ADDS ALAN BURLEY A MINING UNION OFFICIAL AT A COLLIERY IN KIVETON THAT WAS GIVEN A REPRIEVE AFTER BEING SCHEDULED FOR CLOSING INITIALLY PEOPLE'S SPIRITS WERE LIFTED NOW PEOPLE ARE WONDERING ARE WE NEXT IT WAS ALL FALSE PROMISES EMPTY PROMISES SO FAR THE REPORTS OF ADDITIONAL SHUTDOWNS HAVEN'T SET OFF NEW PROTESTS BECAUSE THE CLOSINGS OF LATE HAVE BEEN PIECEMEAL THEY HAVEN'T WON THE ATTENTION THAT THE EARLIER PROPOSAL FOR MASS CLOSINGS DID AND PUBLIC INTEREST HAS WANED AFTER THE INITIAL EMOTIONS WERE SPENT AS A RESULT IT'S UNCLEAR WHAT EFFECT THE APPARENT REVERSAL OF GOVERNMENT POLICY WILL HAVE ON THE SAGGING POPULARITY OF THE TORIES AND THEIR PROSPECTS IN THE NEXT ELECTION WHICH DOESN'T HAVE TO OCCUR UNTIL 1997 STILL SOME BELIEVE IT COULD PROVE TO BE A FACTOR MANY OF LAST FALL'S PROTEST MARCHERS WERE PEOPLE WHO HAD NEVER SEEN A COAL MINE BUT WERE UPSET OVER THE CONTINUING DECLINE OF A MAJOR INDUSTRY MR CASH PREDICTS THAT COAL IS ONE OF A NUMBER OF ISSUES INCLUDING CONCERNS OVER THE BROADER ECONOMY AND EUROPEAN UNITY THAT CUMULATIVELY COULD WEIGH AGAINST THE CONSERVATIVE PARTY COME ELECTION TIME IT'S BOUND TO AFFECT PARLIAMENTARY SEATS ADJACENT TO COAL AREAS EVEN IF IT'S FORGOTTEN IN SOUTHEAST ENGLAND HE CONTENDS WHATEVER THE POLITICAL FALLOUT THE COAL DEBATE UNDERSCORES THE DIFFICULTY OF DEALING WITH A LOSSRIDDEN STATE ENTERPRISE THAT PROVIDES THOUSANDS OF JOBS MANY IN AREAS OF HIGH UNEMPLOYMENT THE CONSERVATIVES ARE COMMITTED TO PRIVATIZING BRITISH COAL WHICH HAS COST THE GOVERNMENT A STAGGERING 19 BILLION 278 BILLION IN RESTRUCTURING AND OTHER EXPENSES SINCE 1980 IT HAS MOVED TO DO THIS BY CLOSING MARGINAL PITS HOPING TO LEAVE BRITISH COAL WITH A SMALL CORE OF PROFITABLE MINES IT IS OFFERING TO LEASE TO PRIVATE COMPANIES SOME MINES IT IS CLOSING BUT THIS PROCESS HAS A HIGH PRICE IN 1981 BRITISH COAL OPERATED 211 MINES AND EMPLOYED 230000 MINERS AS RECENTLY AS 1990 IT EMPLOYED 65000 TODAY IT EMPLOYS JUST OVER 21000 AT 30 PITS HOW MANY MORE PITS WILL BE SHUT IS UNCERTAIN BRITISH COAL SAID IN JULY THAT ADDITIONAL CLOSINGS ARE INEVITABLE THEN LAST WEEK A NEWSLETTER REPORTED THE COMPANY WAS CONSIDERING CLOSING 15 PITS A FIGURE BRITISH COAL WON'T CONFIRM THE DEPARTMENT OF TRADE AND INDUSTRY SAYS THE GOVERNMENT NEVER PROMISED THAT MORE MINES WOULDN'T BE CLOSED TO QUELL THE PUBLIC OUTCRY OVER THE CLOSINGS IN OCTOBER AND A REVOLT BY 30 TORY MPS THAT THREATENED THE GOVERNMENT'S STABILITY IT SCALED BACK PLANS AND SAID IT WOULD CLOSE ONLY 10 MINES AFTER FURTHER REVIEW IT SAID LAST SPRING IT WOULD SHUT AN ADDITIONAL NINE MINES BUT THAT 12 OTHER PITS EARLIER SLATED FOR CLOSING COULD STAY OPEN IF BRITISH COAL FOUND A MARKET FOR THE COAL MOREOVER THE GOVERNMENT SAID IT WOULD PROVIDE ADDITIONAL SUBSIDIES FOR INCREASED SALES OF COAL MANY BRITONS INTERPRETED THIS AS A HOPEFUL SIGN PEOPLE GENUINELY BELIEVED THAT AT LEAST 12 PITS SLATED FOR CLOSING WOULD BE SAVED SAYS A SPOKESWOMAN FOR THE COALFIELD COMMUNITIES CAMPAIGN A PUBLIC INTEREST GROUP BUT BRITISH COAL CAN'T FIND BUYERS FOR THE COAL WITH TOO MANY PITS IN PRODUCTION IT IS MINING FAR MORE COAL THAN IT CAN SELL AN INCREASE IN PRODUCTIVITY AT REMAINING MINES HAS ONLY WORSENED THE OVERSUPPLY THE PROBLEM IN PART IS THAT SOME IMPORTED COAL IS CHEAPER MORE IMPORTANT THE INCREASED USE OF NATURAL GAS AND NUCLEAR POWER TO GENERATE ELECTRICITY HAS CUT INTO DEMAND FOR COAL GOVERNMENT CRITICS SAY THE GOVERNMENT IS FOOLISHLY IGNORING THE LONGTERM COSTS OF NUCLEAR POWER INCLUDING DECOMMISSIONING COSTS AND THE INEFFICIENCY OF NATURAL GAS VS COAL OF WHICH THE COUNTRY HAS HUGE RESERVES ONCE CLOSED COAL MINES ARE PROHIBITIVELY EXPENSIVE TO REOPEN THEY ADD AND THE BUSINESS THAT FUELED THE INDUSTRIAL REVOLUTION WILL BE ALL BUT LOST IN BRITAIN FOR THE 500 WORKERS AT THE KIVETON MINE WHICH IS AGAIN IN DANGER OF CLOSING THIS IS BAD NEWS UNEMPLOYMENT IN THE AREA IS NEARLY 20 AND CLOSURE OF THE CENTURYOLD PIT WOULD BE A DEVASTATING BLOW UNFORTUNATELY IN OUR POSITION ALL WE CAN DO IS WAIT SAYS MR BURLEY THE LOCAL MINEUNION OFFICIAL WHY IS THERE NOT AN OUTCRY HE ASKS I CAN'T ANSWER THAT IT ALL SEEMS TO HAVE PETERED OUT NOW ADDS CHRIS MALLENDER A RESEARCHER AT THE ROTHERHAM BOROUGH COUNCIL A LOCAL GOVERNMENT BODY WHOSE AREA INCLUDES KIVETON POLITICALLY IT'S BEEN A MASTERFUL PERFORMANCE BY THE NATIONAL GOVERNMENT THE GOVERNMENT VERY CLEVERLY MANIPULATED THE PUBLIC BUT ALSO VERY CYNICALLY AT GREAT COST TO COMMUNITIES AFFECTED PEOPLE FEEL COMPLETELY BETRAYED ROGER LYONS AN OFFICIAL AT THE TRADES UNION CONGRESS SAYS THE GOVERNMENT HAS PULLED OFF A MASSIVE CON TRICK IT CLAIMED THAT PITS WOULD BE SAVED BUT THAT WAS OBVIOUSLY A SHAM 9308170114 930817 KMART'S FISCAL 2NDPERIOD PROFIT FELL 39 BUT ANALYSTS ARE STILL HEARTENED BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL KMART CORP POSTED A 39 DROP IN FISCAL SECONDQUARTER PROFIT HURT BY DISAPPOINTING APPAREL SALES LOSSES AT ITS PACE WAREHOUSE STORES AND HIGHER INVENTORIES ANALYSTS HOWEVER WERE HEARTENED THAT RESULTS WEREN'T WORSE THE TROY MICH DISCOUNT AND SPECIALTY RETAILER SAID NET INCOME IN THE QUARTER ENDED JULY 29 FELL TO 102 MILLION OR 22 CENTS A SHARE FROM 168 MILLION OR 37 CENTS A SHARE A YEAR EARLIER SALES ROSE 12 TO A RECORD 1020 BILLION FROM 914 BILLION SEPARATELY KMART SAID IT IS OPENING TWO USSTYLE DISCOUNT STORES EARLY NEXT YEAR IN SINGAPORE THROUGH A JOINT VENTURE WITH LOCAL RETAILER METRO HOLDINGS LTD KMART OFFICIALS SAID THE COMPANY IS PURSUING VENTURES IN OTHER COUNTRIES BECAUSE THERE ARE FEW UNDEVELOPED DISCOUNTSTORE OPPORTUNITIES IN THE US REGARDING SECONDQUARTER RESULTS KMART OFFICIALS HAD WARNED INVESTORS IN JUNE TO EXPECT BAD NEWS BUT RESULTS CAME OUT MUCH BETTER THAN I EXPECTED SAID JANET MANGANO A RETAIL ANALYST WITH BURNHAM SECURITIES INC I WAS EXPECTING KMART TO SHOW THE DRASTIC PROFIT MARGIN EROSION THAT I HAVE SEEN IN OTHER RETAILERS IN THE SECOND QUARTER INSTEAD KMART'S GROSS PROFIT MARGINS DECLINED ONLY SLIGHTLY IN THE QUARTER TO 233 OF SALES FROM 239 A YEAR AGO BUT EARNINGS DID SUFFER AS KMART'S HOPES OF BOOSTING PROFIT MARGINS THROUGH APPAREL SALES FAILED TO KICK IN ANALYSTS SAID SALES OF LOWPROFIT ITEMS SUCH AS CLEANING PRODUCTS AND HEALTHANDBEAUTY AIDS REPRESENTED A HIGHER PERCENTAGE OF SALES THAN THE RETAILER HAD PLANNED MOREOVER EARNINGS WERE STUNG BY CONTINUING PROBLEMS IN THE PACE UNIT WHICH INCURRED A 39 MILLION OPERATING LOSS IN THE LATEST QUARTER AFTER LAST YEAR'S BREAKEVEN RESULTS CONTRIBUTING TO THE LOSS WAS KMART'S DECISION TO CLOSE OR SELL 17 PACE STORES IN THE PERIOD SEVERAL ANALYSTS SUSPECT THAT KMART'S EARNINGS PROBLEMS MAY TRIGGER A BROADER RESTRUCTURING THAN PREVIOUSLY ANTICIPATED IT COULD INCLUDE THE SALE OR SPINOFF OF ONE OR MORE UNDERPERFORMING SPECIALTY STORE DIVISIONS ALREADY THE COMPANY HAS SAID IT WANTS TO SELL THE 560STORE PAYLESS DRUGSTORE CHAIN SUCH SPECULATION IS A POSITIVE CONTENDED CJ LAWRENCE ANALYST JEFFERY EDELMAN THE COMPANY HAS A LOT OF NONPRODUCTIVE ASSETS AND THE TIME HAS COME TO REDEPLOY THOSE ASSETS AFTER YESTERDAY'S EARNINGS REPORT MR EDELMAN RESTATED HIS BUY RECOMMENDATION ON KMART'S COMMON STOCK ANALYSTS' VIEWS OF KMART STOCK ALSO HAVE IMPROVED RECENTLY AFTER COMPANY OFFICIALS DISCLOSED THAT APPAREL SALES ARE IMPROVING AND CONSUMERS ARE BUYING NONAPPAREL ITEMS WITH HIGHER PROFIT MARGINS AS WELL AS A RESULT THE COMPANY SAID THAT IF THE CURRENT TREND CONTINUES IT WILL RECORD HIGHER SECONDHALF EARNINGS THAN A YEAR AGO KMART STOCK WAS QUOTED AT 2325 UP 625 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE IN THE FIRST HALF KMART POSTED A 46 EARNINGS DECLINE BEFORE THE EFFECTS OF AN EXTRAORDINARY ITEM AND ACCOUNTING CHANGES RECORDED IN THIS YEAR'S FIRST QUARTER EARNINGS FELL TO 152 MILLION OR 33 CENTS A SHARE FROM 284 MILLION OR 62 CENTS A SHARE A YEAR EARLIER INCLUDING THE EFFECT OF A 10 MILLION ACCOUNTING CHANGE RELATED TO EARLY DEBT RETIREMENT AND A 17 MILLION CHARGE FOR POSTRETIREMENT BENEFITS KMART'S NET INCOME IN THE FIRST HALF WAS 125 MILLION OR 27 CENTS A SHARE 9308170113 930817 BUSINESS BRIEF INTERNATIONAL TECHNOLOGY CORP CORP OF ENGINEERS TALKS MAY LEAD TO CLEANUP PACT INTERNATIONAL TECHNOLOGY CORP SAID IT IS NEGOTIATING WITH THE US ARMY CORP OF ENGINEERS TO HANDLE A HAZARDOUS WASTE CLEANUP CONTRACT VALUED AT UP TO 150 MILLION OVER FOUR YEARS THE CONTRACT IS THE FIRST SOCALLED TOTAL ENVIRONMENTAL RESTORATION CONTRACT TO BE AWARDED BY THE CORP OF ENGINEERS INTERNATIONAL TECHNOLOGY TORRANCE CALIF HAS BEEN PRELIMINARILY SELECTED TO HANDLE THE CONTRACT FOR THE SOUTHEAST REGION WHICH COVERS THE MYRTLE BEACH AIR FORCE BASE AND OTHER AIR FORCE INSTALLATIONS IN GEORGIA VIRGINIA NORTH CAROLINA AND SOUTH CAROLINA INTERNATIONAL TECHNOLOGY SAID THE FOURYEAR CONTRACT HAS TWO THREEYEAR EXTENSION OPTIONS IF THE CONTRACT IS NEGOTIATED AS EXPECTED THE COMPANY WILL PROVIDE VARIOUS TURNKEY ENVIRONMENTAL SERVICES TO DETERMINE THE SCOPE OF THE ENVIRONMENTAL PROBLEMS AND DEVELOP SOLUTIONS 9308170112 930817 SNET FORMS SUBSIDIARY NEW HAVEN CONN SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORP SAID IT FORMED A SUBSIDIARY SNET AMERICA INC THAT WILL SPECIALIZE IN LONGDISTANCE SERVICE FOR ITS CONNECTICUT CUSTOMERS THE NEW UNREGULATED OPERATION WILL BE SNET'S FIRST ENTRY INTO INTERSTATE LONGDISTANCE SERVICE THE COMPANY SAID THE COMPANY WOULDN'T SPECIFY THE SIZE OF ITS INVESTMENT IN THE NEW OPERATION SNET A TELECOMMUNICATIONS CONCERN OPERATES SOUTHERN NEW ENGLAND TELEPHONE CO THE REGULATED LOCAL PHONE UTILITY FOR MOST OF CONNECTICUT 9308170111 930817 TECHNOLOGY & HEALTH GM'S COMPUTER UNIT PLANS TO MAKE SELL ITS OWN LINE OF PCS DALLAS ELECTRONIC DATA SYSTEMS CORP THE COMPUTER SERVICES CONCERN SAID IT PLANS TO BEGIN MAKING AND SELLING ITS OWN LINE OF PERSONAL COMPUTERS THOUGH THE GENERAL MOTORS CORP UNIT SAID IT PLANS INITIALLY TO SELL ONLY ABOUT 50000 OF THE NEW HOUSEBRAND MACHINES THE MOVE NEVERTHELESS SIGNALS A MARKED DEPARTURE FOR A COMPANY THAT UNTIL NOW HAS AVOIDED THE COMMODITY PC BUSINESS EDS HAS LONG DOMINATED THE SOCALLED OUTSOURCING AND SYSTEM INTEGRATION MARKETS BY BUYING COMPUTERS AND RELATED PRODUCTS AND STRINGING THEM TOGETHER INTO COMPLETE SYSTEMS UNDER THE NEW PLAN EDS WOULD ASSEMBLE THE GUTS OF ITS NEW MACHINES INSTEAD OF BUYING THEM FROM OUTSIDE SUPPLIERS JACK PRIDGEN AN EDS SPOKESMAN EMPHASIZED THAT THE COMPANY DOESN'T PLAN TO JUMP HEADFIRST INTO THE MASSMARKET PC BUSINESS WHICH HAS IN THE PAST YEAR BEEN BRUTALIZED BY FALLING PRICES AND SHRINKING MARGINS INDEED ANALYSTS SAID IT WOULD BE A MISTAKE FOR EDS TO TRY TO COMPETE IN THE MAINSTREAM PERSONAL COMPUTER BUSINESS CONSIDERING THE CURRENT CLIMATE IT STRIKES ME AS A VERY BIZARRE THING FOR EDS TO DO SAID JAMES POYNER AN ANALYST AT OPPENHEIMER & CO IN NEW YORK THEY'RE DOING THIS AT THE EXACT MOMENT OF A CONSOLIDATION CRUNCH IN THE BUSINESS I CAN'T SAY THEIR TIMING LOOKS ALL THAT GREAT THE COMPANY WHICH REPORTED 82 BILLION IN SALES LAST YEAR SAID THE NEW PCS INITIALLY WILL BE BUILT TO SUPPLY A 700 MILLION DEFENSE DEPARTMENT CONTRACT EDS WON IN 1990 THE COMPANY HAS SUPPLIED ABOUT 140000 DESKTOP COMPUTERS SINCE IT WON THE CONTRACT ALL MACHINES MADE BY OTHER COMPANIES AND PACKAGED BY EDS MR PRIDGEN SAID THE NEW MACHINES LIKELY WILL ALSO BE OFFERED TO OTHER EDS CUSTOMERS AND MIGHT BE MADE AVAILABLE TO OTHER CORPORATE BUYERS VIA A TOLLFREE TELEPHONE ORDER LINE FURTHER DETAILS WEREN'T DISCLOSED 9308170110 930817 WORLD MARKETS TOKYO MARKET RISES ON HOPES FOR LOWER RATES AND HONG KONG SETS RECORD LONDON SHARES SLIP A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS RECOVERED EARLY LOSSES MONDAY TO FINISH HIGHER AS THE PROMISE OF LOWER INTEREST RATES HELPED TO OFFSET DECLINES IN BROKERAGE INDUSTRY ISSUES IN LONDON PRICES RETREATED ONLY SLIGHTLY DESPITE THE LARGE NUMBER OF STOCKS TRADING EXDIVIDEND MEANWHILE HONG KONG SHARES SURGED TO A RECORD WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11201 UP 090 REFLECTING INCREASES IN AMERICAN ASIA/PACIFIC AND EUROPEAN MARKETS SEMICONDUCTOR STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 20349 UP 789 OR 4 WITH INTEL OF THE US POSTING A 77 GAIN IN ITS LOCAL CURRENCY POLLUTION STOCKS TRAILED AT 7756 DOWN 062 OR 08 WITH THE CLASS A SHARES OF LAIDLAW OF CANADA SLIDING 417 IN LOCAL CURRENCY TOKYO STOCKS REBOUNDED AFTER A WEAK START AS THE PROMISE OF LOWER INTEREST RATES IN THE NEAR TERM OVERCAME INVESTORS' CONCERNS ABOUT THE PREDICAMENT OF COSMO SECURITIES BROKERAGE SHARES HAD RETREATED SHARPLY ON FRIDAY'S NEWS THAT DAIWA BANK WOULD HAVE TO RESCUE COSMO FROM A 70 BILLION YEN 6869 MILLION LOSS RESULTING FROM QUESTIONABLE TRADING PRACTICES BUT INVESTORS FOCUSED ON THE LIKELIHOOD THAT THE BANK OF JAPAN WILL CUT INTEREST RATES THE YIELD ON NEW THREEMONTH CERTIFICATES OF DEPOSIT FELL TO A RECORD LOW OF 296 AS THE CENTRAL BANK TOOK AN EASIER STANCE IN THE MONEY MARKET ISSUES SENSITIVE TO INTEREST RATES ADVANCED IN RELATIVELY STRONG VOLUME IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100 INDEX SLIPPED 18 POINTS TO 30083 THE FT30 INDEX DROPPED 131 TO 23476 VOLUME WAS 6043 MILLION SHARES COMPARED WITH 7538 MILLION THE PREVIOUS DAY BY TRADING EXDIVIDEND 14 ISSUES COMBINED TO CUT THE FTSE 100 BY 87 POINTS EXDIVIDEND TRADES ARE GENERALLY AT LOWER PRICES BECAUSE THEY REFLECT THE ABSENCE OF DIVIDEND RIGHTS OTHER THAN THAT THERE WAS LITTLE DOWNWARD PRESSURE ON STOCKS HOPES FOR LOWER INTEREST RATES HAVE BUOYED THE FTSE 100 BY ABOUT 200 POINTS SINCE THE VIRTUAL COLLAPSE OF EUROPE'S EXCHANGE RATE MECHANISM A FEW WEEKS AGO WITH NO REASON TO DOUBT THAT INTERESTRATE CUTS ARE COMING THE INDEX HAS MANAGED TO REMAIN ABOVE 3000 OTHER EUROPEAN BOURSES WERE UP YESTERDAY MARKETS IN PARIS MADRID AND BRUSSELS WERE CLOSED IN FRANKFURT STOCKS FINISHED HIGHER BUT WELL SHORT OF EARLYMORNING HIGHS IN THE ABSENCE OF SIGNIFICANT BUY ORDERS THE DAX 30STOCK INDEX OF BLUECHIPS ROSE 561 POINTS TO 191219 IN MILAN STOCKS GAINED ON A BOUT OF SHORTCOVERING AHEAD OF THE END OF THE AUGUST TRADING CYCLE SHORTCOVERING IS THE PURCHASE OF STOCK TO REPLACE SHARES BORROWED FOR A SHORT SALE A BET THAT A STOCK WILL DECLINE IN STOCKHOLM SHARES DECLINED IN HEAVY TRADING AHEAD OF AN ONSLAUGHT OF INTERIM EARNINGS REPORTS THIS WEEK THE DROP FOLLOWED TWO WEEKS OF STRONG GAINS THAT BROUGHT INDEXES TO NEW HIGHS FOR THE YEAR NEARLY EVERY DAY IN ZURICH EQUITIES ENDED HIGHER GETTING A LIFT FROM BLUECHIP ISSUES SWISS BANKING STOCKS RESUMED THEIR CLIMB MOST MAJOR ASIA AND PACIFIC MARKETS FINISHED HIGHER ON MONDAY IN SYDNEY PRICES GAINED ACROSS THE BOARD BUOYED BY STRONG INTEREST IN SOME BLUECHIP STOCKS VOLUME WAS LIGHT AHEAD OF THE AUSTRALIAN GOVERNMENT'S BUDGET TO BE ANNOUNCED TUESDAY BUT THE MARKET DIDN'T APPEAR NERVOUS ABOUT IT IN HONG KONG STOCKS SURGED 13 TO A RECORD FUELED BY BANK AND PROPERTY STOCKS EXPECTATIONS OF GOOD RESULTS FROM MAJOR BLUECHIP COMPANIES DEFIED A LACK OF PROGRESS IN THE LATEST ROUND OF SINOBRITISH POLITICAL TALKS WHICH ENDED MONDAY IN BEIJING TAIPEI STOCKS EASED SLIGHTLY AS EARLY STRONG GAINS WERE ERODED BY PROFITTAKING ON INVESTORS' WORRIES ABOUT POLITICAL TENSIONS OUT OF THE RULING NATIONALIST PARTY'S 14TH PARTY CONGRESS THAT RUNS THROUGH SUNDAY IN MANILA EQUITIES ROSE SLIGHTLY IN MODERATE VOLUME THE MARKET IS MARKED BY CAUTION BECAUSE OF THE RISE IN INTEREST RATES ON PESODENOMINATED PHILIPPINE TREASURY BILLS IN SEOUL STOCKS SURGED ON EXPECTATIONS OF A MARKETBOOSTING MEASURE COMBINED WITH A TECHNICAL REBOUND AFTER TWO CONSECUTIVE DAYS OF HISTORICALLY SHARP LOSSES PRICES WERE SUPPORTED BY THE GOVERNMENT'S CALL TO INSTITUTIONAL INVESTORS TO BUY MORE SHARES THAN THEY SELL IN THE DAY'S TRADING BUYING FOCUSED ON LARGECAPITAL ISSUES INCLUDING BIG MANUFACTURING BANK AND SECURITIES STOCKS ALL BANK ISSUES ROSE TO THEIR PERMISSIBLE HIGHS IN WELLINGTON STOCKS CLIMBED SLIGHTLY BROKERS EXPECT THE MARKET TO DRIFT OVER THE NEXT DAY OR SO AMONG CORPORATE DEVELOPMENTS IN LONDON RTZ ROSE 1 PENNY TO 687 PENCE 1004 THE BRITISH MINING COMPANY REPORTEDLY IS CLOSE TO AN AGREEMENT TO SELL ITS BUILDING AND ELECTRICAL PRODUCTS DIVISION TO INDUSTRIAL CONGLOMERATE MBCARADON FOR 750 MILLION 110 BILLION RTZ CONFIRMED IT IS HOLDING DISCUSSIONS WITH MBCARADON BUT SAID TALKS MAY OR MAY NOT LEAD TO THE SALE OF A LARGE PART OF THE DIVISION IN FRANKFURT TRADING IN SHARES OF GERMAN RETAILING GROUP ASKO WAS SUSPENDED YESTERDAY AFTER SHAREHOLDERS OF RETAILER MASSA YESTERDAY WERE OFFERED THE CHANCE TO SWAP THEIR SHARES FOR ASKO STOCK THE SHARE SWAP WOULD LINK MASSA'S OPERATIONS MORE CLOSELY WITH ASKO 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 9308170109 930817 WHO'S NEWS AMERICAN INTERNATIONAL GROUP INC AMERICAN INTERNATIONAL GROUP INC NEW YORK PETROS SABATACAKIS 45 YEARS OLD WAS NAMED HEAD OF THE MANAGEMENT COMMITTEE THAT RUNS THIS INSURANCE COMPANY'S BIG DERIVATIVES UNIT AIG FINANCIAL PRODUCTS CORP MR SABATACAKIS SUCCEEDS HOWARD SOSIN WHO QUIT FOLLOWING A DISPUTE OVER EFFORTS TO LIMIT THE UNIT'S ACTIVITIES MR SOSIN DISAGREED WITH THE TERMS OF HIS DEPARTURE AND HAS TAKEN THE MATTER TO ARBITRATION HE IS NOW IN THE EARLY STAGES OF CREATING HIS OWN FINANCIAL PRODUCTS COMPANY MR SABATACAKIS REMAINS SENIOR VICE PRESIDENT OF FINANCIAL SERVICES AT AIG HE JOINED THE COMPANY LAST YEAR FROM CHEMICAL BANKING CORP WHERE HE RAN THE CAPITAL MARKETS AND TREASURY DIVISION 9308170108 930817 MARKETING & MEDIA VIACOM UNIT WILL BOOST EFFORTS ON INTERACTIVE TV NEW YORK BRACING FOR THE COMING ERA WHEN VIEWERS INTERACT WITH THEIR TV SETS VIACOM INC FORMED A UNIT TO EXPAND AND COORDINATE ITS INTERACTIVETELEVISION EFFORTS AND APPOINTED THREE SENIOR EXECUTIVES TO RUN IT THE NEW UNIT WILL OVERSEE NEXT YEAR'S LAUNCH OF INTERACTIVE MULTIMEDIA SERVICES IN THE VIACOM CABLE SYSTEM IN CASTRO VALLEY CALIF WHICH THE COMPANY IS CURRENTLY EXPANDING TO DELIVER 150 CHANNELS ALSO THE GROUP WILL SEEK INTERACTIVE OPPORTUNITIES FOR VIACOM'S PORTFOLIO OF PROGRAMMING WHICH INCLUDES MTV VH1 NICKELODEON AND SHOWTIME THOMAS DOOLEY AGE 36 SENIOR VICE PRESIDENT OF CORPORATE DEVELOPMENT WILL ADD TO HIS DUTIES THE NEW ROLE OF PRESIDENT OF INTERACTIVE TELEVISION FOR THE FIRM INTERACTIVITY OFFERS A WHOLE NEW ELECTRONIC CANVAS FOR THE PEOPLE IN VIACOM TO PLAY ON HE SAID THE QUESTION IS WHAT TYPE OF PROGRAMMING WILL BE ENGAGING ENTERTAINING AND INFORMATIVE AND BASICALLY WHAT WILL GET PEOPLE TO SPEND MORE ON THEIR TELEVISION SERVICE THE COMPANY ALSO NAMED TWO VICE PRESIDENTS TO REPORT TO MR DOOLEY ROBERT MEYERS 38 WILL ASSUME THE TITLE OF VICE PRESIDENT OF INTERACTIVE TELEVISION OVERSEEING NEW PROGRAMMING FOR THE CASTRO VALLEY PROJECT HE WAS A VICE PRESIDENT IN THE VIACOM DIVISION THAT HANDLES NETWORK OPERATIONS PETER MILLER 49 FORMERLY AN INDEPENDENT COMPUTER CONSULTANT WHO HAS WORKED FOR APPLE COMPUTER INC WILL BECOME A VICE PRESIDENT OVERSEEING THIRDPARTY ARRANGEMENTS AND EXPLORING JOINT VENTURE OPPORTUNITIES 9308170107 930817 BUSINESS BRIEF GENERAL ELECTRIC CO FINAX GROUP OF STOCKHOLM BOUGHT BY GE CAPITAL UNIT GE CAPITAL SAID IT PURCHASED FINAX GROUP A STOCKHOLM CONSUMER FINANCE COMPANY FOR SLIGHTLY IN EXCESS OF 125 MILLION FROM WASA GROUP OF SWEDEN IN ADDITION GE CAPITAL THE FINANCIAL SERVICES ARM OF GENERAL ELECTRIC CO STAMFORD CONN WILL REPAY EXISTING BORROWINGS OF FINAX INCLUDING EXTERNAL BORROWINGS OF 2625 MILLION AND ASSUME FULL RESPONSIBILITY FOR THE FUTURE FINANCING OF FINAX'S BUSINESS GE CAPITAL SAID THE PURCHASE BROADENS ITS CONSUMER FINANCE PRESENCE IN EUROPE FINAX'S ONE NORWEGIAN AND FOUR SWEDISH CONSUMER FINANCE COMPANIES PROVIDE CONSUMER CREDIT MAINLY UNSECURED PERSONAL LOANS AND CREDIT CARDS TO APPROXIMATELY 400000 CUSTOMERS AT DEC 31 IT HAD 463 MILLION OF LOANS OUTSTANDING NET OF PROVISIONS FOR CREDIT LOSSES FINAX HAD INCOME IN 1992 OF 24 MILLION AFTER PROVISIONS FOR CREDIT LOSSES BUT BEFORE TAXES WASA GROUP CONTROLS TWO MUTUAL INSURANCE COMPANIES AND IS DISPOSING OF BUSINESSES THAT DON'T RELATE TO ITS INSURANCE ACTIVITIES 9308170106 930817 WHAT'S NEWS WORLDWIDE BOSNIA'S FACTIONS AGREED TO LET THE UN ADMINISTER POSTWAR SARAJEVO THE FACTIONS AGREED IN PRINCIPLE TO DEMILITARIZE THE CAPITAL AND PLACE IT UNDER TEMPORARY UN CONTROL BUT THE ACCORD WHICH CAME DURING THE FIRST FACETOFACE BOSNIAN TALKS IN TWO WEEKS WOULD TAKE EFFECT ONLY AFTER A FINAL POLITICAL SETTLEMENT IS REACHED FOR DIVIDING UP BOSNIA A UN SPOKESMAN SAID YESTERDAY'S AGREEMENT ALSO WOULD APPLY TO THE SUBURBS FROM WHICH SERBS HAVE SHELLED SARAJEVO A FINAL GROUP OF 200 SERB SOLDIERS LEFT MOUNT IGMAN NEAR THE CITY THE US SAID THE WITHDRAWAL OF SERBS FROM IGMAN AND ANOTHER MOUNTAIN HADN'T ENDED THE STRANGULATION OF SARAJEVO BECAUSE ADEQUATE RELIEF SUPPLIES AREN'T BEING ALLOWED IN VIRTUALLY NO NEW TAXES WILL BE NEEDED TO FUND CLINTON'S HEALTHCARE PLAN THE ADMINISTRATION IS INDICATING WHITE HOUSE AIDE MAGAZINER SAID THAT SAVINGS GENERATED FROM OVERHAULING THE SYSTEM WOULD BE ENOUGH TO PROVIDE SUBSIDIES FOR SMALL COMPANIES THAT CAN'T AFFORD INSURANCE COVERAGE FOR WORKERS NEW YORK STATE'S CHIEF JUDGE OVERHAULED RULES GOVERNING DIVORCE LAWYERS NO OTHER STATE HAS ADOPTED SUCH FARREACHING RULES WHICH BAN NONREFUNDABLE RETAINER FEES AND LIMIT LAWYERS' ABILITY TO TAKE CONTROL OF A CLIENT'S POSSESSIONS FEE DISPUTES MUST BE RESOLVED BY ARBITRATION AT A CLIENT'S REQUEST THE US AND CHINA ARE DISCUSSING A COMPROMISE THAT WOULD ALLOW A NEUTRAL THIRD PARTY TO INSPECT A CHINESE SHIP THAT THE US SAYS IS CARRYING CHEMICAL ARMS MATERIALS TO IRAN THE VESSEL OFF OMAN IN THE PERSIAN GULF HAS BEEN AN ISSUE FOR WEEKS WITH CHINA DENYING THE CHARGES AND SAYING ITS COMMERCE IS BEING OBSTRUCTED BY THE US SOUTH AFRICAN ELECTIONS WILL TAKE PLACE ON APRIL 27 AS SCHEDULED DESPITE SETBACKS PRESIDENT DE KLERK AND AFRICAN NATIONAL CONGRESS LEADER MANDELA SAID REAFFIRMATION OF THE DATE FOR THE NATION'S FIRST ALLRACE VOTE CAME AFTER A SPATE OF BLACK TOWNSHIP CLASHES AND A BOYCOTT OF DEMOCRACY TALKS BY CONSERVATIVE BLACK AND WHITE GROUPS ISRAEL ANNOUNCED IT WAS SUSPENDING CONTACTS WITH NORTH KOREA AIMED AT GETTING PYONGYANG TO HALT ARMS SHIPMENTS TO IRAN AND SYRIA THE ISRAELI FOREIGN MINISTRY SAID IT EXPECTED THE US GOVERNMENT TO TAKE STEPS TO END THE NORTH KOREAN MISSILE SALES WASHINGTON HAD EXPRESSED CONCERN ABOUT ISRAELI CONTACTS WITH NORTH KOREA THE US PROBABLY WON'T OBJECT IF ISRAEL BRINGS NEW CHARGES AGAINST JOHN DEMJANJUK ACQUITTED LAST MONTH OF BEING NAZI CAMP GUARD IVAN THE TERRIBLE A CLINTON ADMINISTRATION SOURCE SAID THE ISRAELI SUPREME COURT WILL RULE TOMORROW ON WHETHER DEMJANJUK CAN BE TRIED ON CHARGES ALLEGING HE WAS A GUARD AT OTHER NAZI CAMPS A FEDERAL JUDGE DENIED A REQUEST TO RELEASE SHEIK OMAR ABDELRAHMAN WHOSE FOLLOWERS ARE ACCUSED IN THE WORLD TRADE CENTER BOMBING AND IN A PLOT TO BOMB OTHER NEW YORK CITY SITES THE NEW YORK JUDGE SAID THE BLIND CLERIC'S DEPORTATION ORDER BY THE US GOVERNMENT STANDS BUT HE DELAYED DEPORTATION FOR 10 DAYS PENDING APPEAL NIGERIA'S MILITARY RULER PREPARED TO GIVE A MAJOR SPEECH TO PARLIAMENT TODAY SPARKING SPECULATION HE MIGHT TRY TO RENEGE ON HIS PLEDGE TO STEP DOWN AUG 27 THE COUNTRY WAS PLUNGED INTO A POLITICAL CRISIS JUNE 12 WHEN GEN BAGANGIDA VOIDED RESULTS OF A PRESIDENTIAL BALLOT THAT WAS SUPPOSED TO CHOOSE HIS CIVILIAN SUCCESSOR THAI RESCUE WORKERS DISCOVERED FIVE WOMEN ALIVE AFTER THEY HAD BEEN TRAPPED THREE DAYS BENEATH A COLLAPSED HOTEL IN NORTHEASTERN THAILAND EARLIER IN THE DAY AUTHORITIES HAD RULED OUT FINDING MORE SURVIVORS AND BEGAN USING HEAVY EQUIPMENT TO REMOVE DEBRIS AT LEAST 100 PEOPLE WERE KILLED IN FRIDAY'S ACCIDENT UNITA REBELS LAUNCHED A NEW ARTILLERY ASSAULT ON THE BESIEGED ANGOLAN CITY OF CUITO AND HUNDREDS OF BODIES WERE LYING IN THE STREETS THE OFFICIAL NEWS AGENCY SAID TARGETS OF THE SHELLING WERE REPORTED TO BE THE HOSPITAL GOVERNMENT BUILDINGS AND THE NATIONAL BANK OFFICES GOVERNMENT FORCES HAVE BEEN FIGHTING TO BREAK THE SIEGE AZERBAIJANI DEFENSE OFFICIALS SAID ARMENIAN FIGHTERS HAD FULLY ENCIRCLED A STRATEGIC SOUTHERN TOWN FUZULI AND ITS DEFENDERS WERE INVOLVED IN STREET BATTLES THE AZERBAIJANI OFFICIALS CLAIMED THE ARMENIANS ALSO WERE STEPPING UP THEIR ASSAULT ON CEBRAYIL FARTHER TO THE SOUTH 9308170105 930817 PEOPLE PATTERNS BY ALAN L OTTEN CAREGIVING IS EXTENSIVE AT ALL AGES AND FOR ALL AGES A NEW ANALYSIS SHOWS UNIVERSITY OF WISCONSIN DEMOGRAPHER NADINE MARKS STUDIED THE CAREGIVING EXPERIENCE OF MORE THAN 13000 MEN AND WOMEN AGE 19 AND OVER WHEN INTERVIEWED IN 1987 AND EARLY 1988 MORE THAN ONE IN SEVEN REPORTED CARING FOR A DISABLED OR CHRONICALLY ILL RELATIVE OR OTHER PERSON DURING THE YEAR PRECEDING THE INTERVIEW ABOUT TWOTHIRDS WERE HELPING AGED PARENTS OR OTHERS OVER 65 BUT THE REST WERE CARING FOR NONELDERLY PEOPLE CHILDREN SPOUSES OR OTHER RELATIVES AND FRIENDS AMONG YOUNG ADULTS THOSE AGES 19 TO 34 ABOUT 15 OF THE WOMEN AND 10 OF THE MEN HAD CARED FOR A CHRONICALLY ILL OR DISABLED RELATIVE OR FRIEND AMONG THOSE 35 TO 49 YEARS OLD ONE IN FIVE WOMEN AND ONE IN SEVEN MEN WERE CAREGIVERS WHILE FROM 50 ON ABOUT ONE OF FIVE ADULTS BOTH FEMALE AND MALE WAS HELPING SOMEONE OUT PATTERNS DIFFERED FOR INHOUSEHOLD AND OUTOFHOUSEHOLD CARE ONLY ONE OUT OF 14 ADULTS WAS PROVIDING CARE WITHIN HIS OR HER OWN HOUSEHOLD MOST OFTEN FOR A SPOUSE OR CHILD AMONG ADULTS UNDER 50 JUST ONE IN 20 WAS GIVING WITHINHOME CARE WHILE AT OLDER AGES ABOUT ONE IN 10 WAS THOSE 19 TO 34 WERE USUALLY TAKING CARE OF A CHILD OR A PARENT WHILE THOSE BETWEEN 35 AND 49 WERE MOST FREQUENTLY CARING FOR A SPOUSE CHILD OR PARENT OLDER CAREGIVERS WERE MOST OFTEN GIVING ATHOME CARE TO AN ILL OR DISABLED SPOUSE ONE OUT OF 10 ADULTS REPORTED GIVING OUTOFHOUSEHOLD CARE DURING THE PRECEDING YEAR TYPICALLY TO AGED PARENTS OR OTHER ELDERLY RELATIVES OR FRIENDS LITTLE CARE FOR SPOUSES OR CHILDREN TOOK PLACE OUTSIDE THE CAREGIVER'S HOME THE ANALYSIS CONFIRMS THE HEAVY BURDEN ON MIDDLEAGED WOMEN ABOUT 15 OF THOSE 35 TO 64 CARED FOR A PARENT OR OTHER PERSON LIVING OUTSIDE THEIR OWN HOME AMERICANS ARE STILL A SURPRISINGLY SEDENTARY BUNCH THE GOVERNMENT REPORTS OFFICIALS AT THE CENTERS FOR DISEASE CONTROL AND PREVENTION ANALYZED THE LEISURETIME PHYSICAL ACTIVITY REPORTED BY OVER 87000 ADULTS RESPONDING TO A RANDOMDIALED PHONE SURVEY AFTER REVIEWING THE FREQUENCY DURATION AND INTENSITY OF THE RESPONDENTS' EXERCISE THE OFFICIALS CLASSIFIED 58 AS HAVING A BASICALLY SEDENTARY LIFESTYLE THREE OUT OF 10 ADULTS ENGAGED IN NO LEISURETIME EXERCISE AT ALL AND AN ADDITIONAL 28 EXERCISED ONLY VERY IRREGULARLY THE LACK OF EXERCISE WAS JUST ABOUT AS COMMON AMONG MEN AS AMONG WOMEN AS MIGHT BE EXPECTED EXERCISING DECREASED STEADILY WITH AGE THOUGH IT WAS LOW IN ALL AGE GROUPS IN THE 18TO34 AGE GROUP 55 WERE CLASSIFIED AS SEDENTARY AND THE FIGURE CLIMBED TO 62 OF THOSE 55 AND OLDER HIGHERINCOME AND BETTEREDUCATED MEN AND WOMEN WERE MORE LIKELY TO HAVE REGULAR LEISURETIME EXERCISE THAN THOSE WITH LOW INCOMES OR LESSER EDUCATION ONLY HALF OF THE COLLEGEEDUCATED MEN AND WOMEN WERE CLASSED AS SEDENTARY COMPARED WITH 72 OF THOSE WHO FAILED TO COMPLETE HIGH SCHOOL THE OFFICIALS CONCEDED THAT MANY LOWINCOME OR LESSEDUCATED MEN AND WOMEN WORK AT PHYSICALLY DEMANDING JOBS AND MIGHT NOT WANT MUCH FURTHER EXERCISE STILL THEY SAID MANY TRADITIONALLY STRENUOUS JOBS ARE NOW HIGHLY MECHANIZED INVOLVING LESS EXERTION THAN COMMONLY THOUGHT MOREOVER THEY ADDED OBESITY LEVELS PHYSICALFITNESS TESTS AND OTHER DATA SUPPORT THE OBSERVATION THAT IN GENERAL LOWERINCOME AND LESSEDUCATED ADULTS ARE LESS PHYSICALLY ACTIVE THAN THOSE WITH HIGHER INCOMES OR MORE EDUCATION PARENTAL INDIFFERENCE PROMPTS MANY NEW TEACHERS TO CALL IT QUITS METROPOLITAN LIFE INSURANCE COMMISSIONED LOUIS HARRIS & ASSOCIATES TO SURVEY 1000 NEW TEACHINGCOLLEGE GRADUATES IN THE SUMMER OF 1990 JUST BEFORE THEY BEGAN PUBLICSCHOOL JOBS THEY WERE SURVEYED AGAIN IN THE SPRING OF 1991 AND THE SPRING OF 1992 BY WHICH TIME THEY WERE FINISHING THEIR SECOND YEAR OF TEACHING A ROBUST 70 FOUND WORKING WITH STUDENTS VERY SATISFYING AND ANOTHER 27 CALLED IT SOMEWHAT SATISFYING BUT SLIGHT DISILLUSIONMENT HAD BEGUN TO SET IN AT THE BEGINNING OF THEIR TEACHING 93 STRONGLY AGREED THAT ALL CHILDREN CAN LEARN AND 83 FIRMLY BELIEVED THAT TEACHERS CAN HAVE A POSITIVE EFFECT ON THE LIVES OF THEIR STUDENTS AT THE END OF TWO YEARS THOSE PROPORTIONS HAD DROPPED TO 86 AND 71 RESPECTIVELY MOREOVER THE PERCENTAGE SAYING EVEN THE BEST TEACHERS WOULD FIND IT DIFFICULT TO TEACH MORE THAN TWOTHIRDS OF THEIR PUPILS ROSE TO 56 LAST YEAR FROM 45 IN 1990 BY THE SPRING OF 1992 ONE OUT OF FIVE TEACHERS THOUGHT IT VERY LIKELY OR FAIRLY LIKELY THAT THEY WOULD QUIT TEACHING IN THE NEXT FIVE YEARS THE MAJOR REASON INFLUENCING THE DECISION TO QUIT WAS LACK OF PARENTAL SUPPORT FOR THE STUDENTS HIGHSCHOOL TEACHERS AND TEACHERS AT INNERCITY SCHOOLS WERE PARTICULARLY APT TO CITE THIS OTHER REASONS FREQUENTLY MENTIONED INCLUDED THE NEED TO EARN MORE MONEY LACK OF SUPPORT FROM SCHOOL ADMINISTRATORS AND A BELIEF THAT THE SOCIAL PROBLEMS FACED BY THEIR STUDENTS MADE TEACHING TOO DIFFICULT NONETHELESS METLIFE ENDED ITS ANALYSIS ON A MORE POSITIVE NOTE DECLARING THAT WHILE TWO YEARS IN THE CLASSROOM SEEM TO HAVE TEMPERED THE TEACHERS' IDEALISM THE VAST MAJORITY WANT TO REMAIN AS TEACHERS AND BELIEVE THAT ALL CHILDREN CAN LEARN ABOUT 44 OF FARMLAND OWNERS RENT THEIR LAND TO OTHER FARMERS ACCORDING TO THE CENSUS BUREAU WOMEN WHO ARE SOLE OWNERS ACCOUNT FOR 40 OF THE LANDLORDS WHILE AN ADDITIONAL 30 ARE WOMEN WHO ARE JOINT OWNERS WITH MEN MINORITY ENROLLMENT IN BOARDING SCHOOLS HAS RISEN TO 135 FROM 88 IN 1981 THE ASSOCIATION OF BOARDING SCHOOLS REPORTS GREATER FINANCIAL AID WAS AN IMPORTANT ELEMENT IN THE INCREASE 9308170104 930817 MARKETING & MEDIA TWEETER'S CUSTOMERS TOLD YOUR CHECK IS IN THE MAIL' NEW ENGLAND RETAILER SAYS ITS COMPUTERS SHOP THE ADS OF RIVALS TO ENSURE REFUNDS BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL TWEETER ETC A NEW ENGLAND STEREO AND TELEVISION RETAILER IS GOING A STEP BEYOND ITS RIVALS BY PROMISING TO AUTOMATICALLY MAIL CUSTOMERS A REFUND CHECK ANYTIME A COMPETITOR ADVERTISES A LOWER PRICE MOST COMPANIES IN THE COMPETITIVE ELECTRONICS FIELD WILL GIVE REFUNDS TO CUSTOMERS WHO BUY A PRODUCT THEN SEE IT ADVERTISED FOR LESS AND BRING IN THE AD WITHIN 30 DAYS TWEETER SAYS IT WILL SAVE CUSTOMERS THE TROUBLE OF MONITORING ADS AND RETURNING TO THE STORE IN ELECTRONICS EVERYONE HAS A LOWPRICE GUARANTEE BUT THEN IT'S TRY AND CATCH THEM SAID JEFFREY STONE PRESIDENT OF TWEETER THIS TIME THE CHECK REALLY IS IN THE MAIL BASED IN CANTON MASS TWEETER A UNIT OF CLOSELY HELD NEW ENGLAND AUDIO CO SETS SOME LIMITS IT SAID IT WILL MONITOR ONE OR TWO DAILY NEWSPAPERS IN EACH OF ITS MARKETS ANY TIME A COMPETITOR WITHIN 25 MILES OF ONE OF ITS STORES ADVERTISES A LOWER PRICE THE AUTOMATIC PRICE PROTECTION PROGRAM GOES INTO EFFECT RADIO TELEVISION AND DIRECT MAIL ADS DON'T COUNT AND THE GUARANTEE APPLIES ONLY TO ITEMS OVER 50 WHEN TWEETER'S COMPETITIVE MARKETING STAFFERS SEE A RIVAL'S AD QUOTING A PRICE THEY ENTER IT IN TWEETER'S COMPUTER A PROGRAM THEN CHECKS TO SEE IF ANYBODY HAS BOUGHT THAT ITEM FROM TWEETER FOR A HIGHER PRICE IN THE PAST 30 DAYS IF SO THE COMPUTER SPITS OUT A CHECK FOR THE DIFFERENCE EDGAR DWORSKY MASSACHUSETTS ASSISTANT ATTORNEY GENERAL FOR CONSUMER PROTECTION SAID IT'S A BRILLIANT IDEA THE PROBLEM WITH PRICE PROTECTION GUARANTEES HAS BEEN THAT IT'S THE CONSUMER'S BURDEN TO FIND A LOWER PRICE SOMEWHERE ELSE TWEETER'S GOING TO DO THE WATCHING FOR YOU I JUST HOPE THEY DON'T LOSE THEIR SHIRTS TWEETER WITH 40 MILLION A YEAR IN SALES AT 14 STORES IS A MEDIUMSIZED PLAYER IN THE INCREASINGLY COMPETITIVE NEW ENGLAND MARKET IT SELLS NAMEBRAND STEREOS TELEVISIONS CAR RADIOS AND CAR PHONES IT DOESN'T COMPETE AT THE VERY LOW END OF THE MARKET HOWEVER TWEETER SAYS THAT BECAUSE IT IS PART OF THE PROGRESSIVE RETAILERS ORGANIZATION INC A PALM SPRINGS CALIF BUYING GROUP IT CAN GET THE SAME VOLUME DISCOUNTS AVAILABLE TO NATIONAL CHAINS MR STONE OF TWEETER ESTIMATES THAT THE COMPANY MAILS 3000 TO 4000 A MONTH IN REFUND CHECKS TO SHARPEYED CUSTOMERS HE SAYS THE AMOUNT COULD DOUBLE UNDER THE NEW PROGRAM RETAIL CONSULTANTS SAY THE TOTAL MAY BE FAR HIGHER I'D GUESS 5 OF CUSTOMERS ACTUALLY CHECK COMPETITORS' ADS SAYS ROBERT KAHN A RETAIL CONSULTANT IN LAFAYETTE CALIF BUT HE SAYS THIS WILL BUILD CUSTOMERS BECAUSE SOMEBODY WHO GETS A CHECK WILL SAY SOMETHING EXCEPTIONAL ABOUT TWEETER TO HIS FRIENDS THAT'S WHAT TWEETER IS COUNTING ON A FEW INCREMENTAL SALES WILL MORE THAN PAY FOR THE PROGRAM SAID SANDY BLOOMBERG CHIEF EXECUTIVE AND FOUNDER OF TWEETER TWEETER OFFICIALS SAID THE COMPANY WORKED TO BUILD A HIGHPRICE HIGHQUALITY IMAGE DURING THE 1980S BUT FOCUS GROUP RESEARCH SHOWED IT NEEDED TO REVERSE THAT IMAGE FOR THE '90S PEOPLE USED TO BOAST ABOUT HOW MUCH THEY PAID FOR SOMETHING NOW THEY BOAST ABOUT HOW MUCH THEY SAVED ON IT SAID MR STONE 9308170103 930817 PUBLIX SUPER MARKETS TO PAY 500000 FINE FOR LABOR VIOLATIONS LAKELAND FLA PUBLIX SUPER MARKETS INC SAID IT AGREED TO PAY A 500000 FINE FOLLOWING A LABOR DEPARTMENT INVESTIGATION INTO VIOLATIONS OF CHILDLABOR LAWS AT THE GROCERY STORE CHAIN LABOR DEPARTMENT OFFICIALS SAID THE PROBE REVEALED ABOUT 130 VIOLATIONS IN 11 OF THE 15 PUBLIX STORES INVESTIGATED THE BULK OF THE VIOLATIONS RELATED TO MINORS WORKING TOO MANY HOURS AND DURING TIMES PROHIBITED BY CHILDLABOR LAWS FOR INSTANCE 14YEAROLDS AND 15YEAROLDS CANNOT WORK BEFORE 7 AM OR PAST 7 PM DURING THE SCHOOL YEAR THE INVESTIGATION ALSO FOUND THAT PUBLIX ALLOWED 38 EMPLOYEES UNDER AGE 18 TO OPERATE HAZARDOUS EQUIPMENT INCLUDING PAPER BALERS AND DOUGH MIXERS THE SETTLEMENT REFLECTS THE CLINTON ADMINISTRATION'S CONTINUING EFFORTS TO STEP UP ENFORCEMENT OF LABOR LAWS IN RECENT WEEKS THE DEPARTMENT WON LARGE SETTLEMENTS FROM GREAT ATLANTIC & PACIFIC TEA CO AND FOOD LION INC RELATED TO INVESTIGATIONS OF THOSE CHAINS' CHILDLABOR PRACTICES IN ADDITION TO THE FINE PUBLIX SAID IT WILL TAKE STEPS TO REINFORCE TRAINING PROGRAMS AND REDUCE THE NUMBER OF HOURS MINORS CAN WORK EACH DAY 9308170102 930817 BUSINESS BRIEF TEXTRON PLANS TO SELL UP TO 19 STAKE IN PAUL REVERE INSURANCE UNIT TO PUBLIC PROVIDENCE RI TEXTRON INC SAID IT WILL SELL TO THE PUBLIC AS MUCH AS 19 OF ITS PAUL REVERE CORP INSURANCE UNIT OFFERING 85 MILLION SHARES OF THE UNIT FOR 25 A SHARE OR A TOTAL OF 213 MILLION THE OFFERING CONSISTS OF 75 MILLION SHARES AND A 105 MILLION SHARE OPTION FOR UNDERWRITERS TO COVER ANY OVERALLOTMENT TEXTRON A MAKER OF AEROSPACE AND INDUSTRIAL PRODUCTS AND A PROVIDER OF FINANCIAL SERVICES SAID IT WILL USE THE PROCEEDS TO REDUCE DEBT BY 100 MILLION TO ABOUT 226 BILLION FROM 236 BILLION AND TO BOOST PAUL REVERE'S CAPITAL TEXTRON HAS SAID IT PLANS TO REDUCE DEBT IN ORDER TO INCREASE FLEXIBILITY FOR ACQUISITIONS IN THE MANUFACTURING AREA AFTER THE ANNOUNCEMENT TEXTRON SHARES JUMPED 1625 TO 58375 IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY PEOPLE HAVE COMPLAINED ABOUT ITS TEXTRON'S DEBT AND ITS INABILITY TO BUY MORE THINGS THIS IS A CLEAR POSITIVE SAID JACK MODZELEWSKI AN ANALYST WITH PAINEWEBBER INC PAUL REVERE BASED IN WORCESTER MASS IS THE LEADING PROVIDER OF INDIVIDUAL DISABILTY INSURANCE WITH ABOUT 18 OF THE MARKET TEXTRON SAID LAST YEAR IT HAD PROFIT OF 77 MILLION BEFORE ACCOUNTING CHANGES ON REVENUE OF 11 BILLION IT HAD ASSETS AT YEAR END OF 46 BILLION UNDERWRITERS FOR THE OFFERING WILL BE LED BY SALOMON BROTHERS INC DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND FIRST BOSTON CORP TEXTRON OFFICIALS SAID THE SALE WILL HAVE SEVERAL BENEFITS PAUL REVERE IS ONE OF TEXTRON'S MOST PROFITABLE UNITS BUT IT CONSUMES ALL THE CASH IT GENERATES BECAUSE OF REGULATORY REQUIREMENTS BY SELLING STOCK TO THE PUBLIC PAUL REVERE CAN RAISE ITS OWN EQUITY IN THE FUTURE MOREOVER AN OFFERING WOULD HIGHLIGHT THE VALUE OF PAUL REVERE JAMES HARDYMON CHAIRMAN OF TEXTRON SAID WE HAVE NO PRESENT PLANS TO SELL ALL OR A PORTION OF ANY OTHER FINANCIAL SERVICES DIVISION HOWEVER MR MODZELEWSKI OF PAINEWEBBER SAID IF THIS GOES WELL CERTAINLY EVERYONE IS GOING TO LOOK AT AVCO FINANCIAL SERVICES TEXTRON A BIG CONSUMER FINANCE SUBSIDIARY AS ANOTHER POSSIBLE SALE CANDIDATE NEXT YEAR 9308170101 930817 NEW YORK CITY PASSES LAWS ON DEVELOPMENT OF WATERFRONT LAND NEW YORK THE NEW YORK CITY PLANNING COMMISSION APPROVED NEW ZONING LAWS TO GOVERN DEVELOPMENT ON THE CITY'S 578 MILES OF WATERFRONT THE RULES REQUIRE ALL NEW RESIDENTIAL AND COMMERCIAL DEVELOPMENTS IN MEDIUM AND HIGH DENSITY AREAS TO SET ASIDE 15 TO 20 OF THE DEVELOPMENT'S AREA FOR PUBLICLY ACCESSIBLE OPEN SPACE THE RULES ALSO PUT HEIGHT AND FORM RESTRICTIONS ON WATERFRONT BUILDINGS A YEAR AGO THE CITY PLANNING DEPARTMENT RECOMMENDED NEW RULES TO REGULATE WATERFRONT DEVELOPMENT FOR THE FIRST TIME IN OUR CITY'S HISTORY WE ARE CREATING A FRAMEWORK TO GUIDE LAND USE ALONG OUR SHORELINE WHICH WILL PRESERVE OUR NATURAL RESOURCES STRENGTHEN OUR ECONOMY AND RECLAIM THE CITY'S EDGE FOR PUBLIC USE AND ENJOYMENT SAID MAYOR DAVID DINKINS FERRIES AND EXCURSION AND FISHING BOATS WOULD BE PERMITTED IN VARIOUS COMMERCIAL ZONES CURRENTLY THEY ARE LIMITED TO MANUFACTURINGZONED AREAS ON THE WATERFRONT 9308170100 930817 COMMODITIES PRICE OF WHEAT JUMPS AMID REPORTS OF SPREAD OF TOXIC FUNGUS TO ABOUT 15 OF SPRING CROP BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO WHEAT PRICES JUMPED AMID REPORTS THAT A TOXIC FUNGUS HAS SPREAD THROUGH ROUGHLY 15 OF THE US SPRING WHEAT CROP US FOOD AND DRUG ADMINISTRATION OFFICIALS SAID LATE YESTERDAY THAT THE AGENCY IS SCREENING HUNDREDS OF GRAIN SAMPLES FROM MINNESOTA SOUTH DAKOTA AND NORTH DAKOTA FOR THE APTLY NAMED VOMITOXIN THE FUNGUS APPARENTLY IS PART OF THE FALLOUT FROM THE RECORD RAIN AND FLOODING ACROSS THE FARM BELT THIS SUMMER THE ORGANISM THRIVES IN DAMP COOL WEATHER THE VOMITOXIN IT PRODUCES CAUSES NAUSEA IN PEOPLE WHO EAT FOOD MADE FROM CONTAMINATED FLOUR SPRING WHEAT IS PRIMARILY USED TO MAKE CAKE AND PASTRY IN TRADING AT THE MINNEAPOLIS GRAIN EXCHANGE THE SPRING WHEAT CONTRACT FOR SEPTEMBER DELIVERY ROSE 11 CENTS A BUSHEL TO SETTLE AT 32225 A BUSHEL FDA OFFICIALS SAID THEY WON'T HAVE A CLEAR PICTURE ON THE EXTENT OF THE OUTBREAK FOR ABOUT ONE WEEK BUT IT ALREADY APPEARS TO BE THE LARGEST IN RECENT MEMORY DANIEL W BASSE DIRECTOR OF RESEARCH AT AGRESOURCE CO ESTIMATES THAT UP TO ABOUT 100 MILLION BUSHELS OF THE SPRING WHEAT CROP WHICH IS IN THE PROCESS OF BEING HARVESTED IS CONTAMINATED BEFORE THE OUTBREAK SPRING WHEAT FARMERS WERE EXPECTED TO HARVEST ABOUT 645 MILLION BUSHELS THE OUTBREAK IS SNARLING THE GRAIN INDUSTRY IN THE THREE STATES BECAUSE ELEVATORS ARE REFUSING TO TAKE DELIVERY OF THE CROP UNTIL IT IS SCREENED MANY FLOUR MILLERS WON'T ACCEPT WHEAT THAT HAS MORE THAN TWO PARTS PER MILLION OF VOMITOXIN THAT MIGHT SPARK A RUN ON ALTERNATIVE VARIETIES SUCH AS WHITE WHEAT FROM THE PACIFIC NORTHWEST AND HARD RED WINTER WHEAT FROM THE SOUTHERN PLAINS THE FDA ISSUED THE TWO PART PER MILLION GUIDELINE IN 1982 BASED ON RECENT RESEARCH THE FEDERAL GOVERNMENT IS CONSIDERING WHETHER TO RAISE THAT LEVEL MODERATELY WHILE VOMITOXIN MOSTLY CAUSES STOMACH DISCOMFORT IN PEOPLE THE POISON IS MORE DANGEROUS TO LIVESTOCK OUTBREAKS ARE COSTLY FOR DAIRY PRODUCERS BECAUSE COWS THAT EAT CONTAMINATED WHEAT PRODUCE LESS MILK THE TOXIN HAS BEEN KNOWN TO KILL POULTRY THE FUNGUS WHICH MANY FARMERS CALL SCAB ALSO AFFECTS THE BAKING CHARACTERISTICS OF WHEAT THE OUTBREAK SIGNALS THAT THE RECORD WET WEATHER MIGHT TRIGGER A WIDESPREAD PROBLEM WITH CROP DISEASES THIS YEAR THE IOWA CORN CROP ALREADY HAS BEEN HEAVILY INFESTED WITH LEAF RUST WHICH IS MORE COMMON IN HUMID SOUTHERN STATES AND GRAIN INDUSTRY OFFICIALS ARE CONCERNED THAT MANY OF THE CROPS THAT HAVE BEEN STRANDED ON RIVER BARGES BY FLOODING SINCE JUNE ARE UNUSUALLY VULNERABLE TO CONTAMINATION SEPARATELY CORN AND SOYBEAN PRICES SLIPPED AT THE CHICAGO BOARD OF TRADE IN THE WAKE OF FORECASTS FOR NORMAL TO ABOVENORMAL TEMPERATURES THROUGHOUT THE MIDWEST INTO MIDSEPTEMBER THE FORECASTS EASED CONCERNS THAT EARLY FROSTS MIGHT TRIM THE SIZE OF THE CORN AND SOYBEAN CROPS WHICH HAVE BEEN GROWING SO SLOWLY THAT MANY FIELDS WON'T MATURE UNTIL OCTOBER THE CORN FUTURES CONTRACT FOR SEPTEMBER DELIVERY FELL 225 CENTS A BUSHEL TO SETTLE AT 2365 A BUSHEL THE SOYBEAN CONTRACT FOR SEPTEMBER DELIVERY DROPPED 35 CENTS A BUSHEL TO SETTLE AT 65225 A BUSHEL THE WEEKLY CROP CONDITION SURVEYS RELEASED BY THE MAJOR FARM BELT STATES AFTER THE CLOSE OF TRADING YESTERDAY SHOWED LITTLE CHANGE DESPITE DRIER WEATHER LAST WEEK FARMERS IN THE SURVEYS RATED 51 OF THE US CORN CROP IN GOOD TO EXCELLENT CONDITION COMPARED WITH 52 DURING THE PREVIOUS WEEK SOYBEAN FARMERS RATED 47 OF THEIR CROP IN GOOD TO EXCELLENT CONDITION COMPARED WITH 45 THE PREVIOUS WEEK IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS GOLD AND SILVER FUTURES PRICES RALLIED IN MOSTLY TECHNICAL TRADING DEALERS SAID GOLD FOR DECEMBER DELIVERY FIRMED 380 TO 37640 AN OUNCE ON NEW YORK'S COMMODITY EXCHANGE TRADERS SAID THAT BULLION PRICES WERE BEING SUPPORTED BY RENEWED INVESTMENT DEMAND FROM EUROPE WHERE CURRENCY INSTABILITYPARTICULARLY OVER THE VALUATION OF THE FRENCH FRANCCONTINUES TO RATTLE CONFIDENCE IN THE EUROPEAN MONETARY SYSTEM'S EXCHANGE RATE MECHANISM GOLD REACTED TO THE ERM TENSIONS OVER THE WEEKEND AND TO THE DOLLAR'S DECLINE MONDAY AGAINST THE YEN SAID KEN GETTINGER HEAD OF PRECIOUS METALS TRADING AT UNION BANK OF SWITZERLAND IN NEW YORK SILVER FOR DECEMBER DELIVERY JUMPED 13 CENTS TO 4795 AN OUNCE ON THE COMEX OTHER PRECIOUS METALS FUTURES PRICES FIRMED PLATINUM FOR OCTOBER DELIVERY ROSE 330 TO 38990 ON THE NEW YORK MERCANTILE EXCHANGE WHILE PALLADIUM FOR DECEMBER DELIVERY EDGED UP 150 TO 13850 ENERGY PETROLEUM FUTURES WERE LOWER AS CRUDE OIL FELL THROUGH THE PSYCHOLOGICALLY IMPORTANT LEVEL OF 18 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE THE SEPTEMBER CRUDE CONTRACT WHICH EXPIRES FRIDAY SETTLED AT 1786 A BARREL DOWN 28 CENTS PETROLEUM PRODUCTS ALSO WEAKENED WITH UNLEADED GASOLINE FOR SEPTEMBER DELIVERY DROPPING 058 CENT A GALLON TO 5564 CENTS CHANCES OF A REVIVAL OF LAST WEEK'S GASOLINE RALLY WHICH BRIEFLY LED WORLD OIL PRICES HIGHER APPEARED TO FADE DESPITE A PERCEPTION AMONG SOME ANALYSTS THAT US DEMAND FOR THE FUEL IS GROWING AND THAT SUPPLIES COULD BECOME TIGHT INDUSTRY SPOKESMEN ARE SKEPTICAL OF THIS VIEW MAINTAINING THAT GASOLINE DEMAND REMAINS SLUGGISH MORE SHOULD BE KNOWN AFTER TONIGHT'S WEEKLY RELEASE OF US GASOLINE INVENTORY FIGURES AND TOMORROW'S MONTHLY STATISTICAL REPORT BY THE AMERICAN PETROLEUM INSTITUTE 9308170099 930817 ENTERTAINMENT TURNER'S PLAN TO BUY STUDIOS GAINS GROUND BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AS THE BOARD OF TURNER BROADCASTING SYSTEM INC PREPARED TO VOTE TODAY ON TED TURNER'S PROPOSAL TO BUY NEW LINE CINEMA CORP AND CASTLE ROCK ENTERTAINMENT TIME WARNER INC HAS GRUDGINGLY DECIDED TO DROP ITS OPPOSITION TO THE DEAL TIME WARNER WHICH HOLDS THREE SEATS ON THE TURNER BOARD AND OWNS A 206 STAKE IN THE COMPANY APPEARS READY TO ACQUIESCE TO AVOID PRECIPITATING A SHOWDOWN WITH MR TURNER OVER HIS RESOLVE TO EXPAND INTO HOLLYWOOD ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER THE COMPANY IS EXPECTED EITHER TO VOTE FOR THE DEAL OR TO ABSTAIN BUT PEOPLE FAMILIAR WITH THE TALKS SAID TIME WARNER EXECUTIVES STILL HAVE SERIOUS RESERVATIONS ABOUT THE PROPOSAL THESE PEOPLE SAID THE COMPANY BELIEVES THE DEAL ULTIMATELY WILL BE FAR MORE EXPENSIVE THAN INDICATED IN PUBLISHED REPORTS WHICH HAVE PEGGED THE STOCKSWAP TRANSACTION AT AS MUCH AS 500 MILLION THAT FIGURE REFLECTS ONLY THE COMBINED PURCHASE PRICE EXECUTIVES SAID WHILE MR TURNER INTENDS TO INCREASE THE STUDIOS' PRODUCTION SCHEDULES AFTER HE TAKES OVER GENERALLY AN EXPENSIVE PROPOSITION IN HOLLYWOOD THEY INDICATED THE HIGHER OUTPUT COULD ADD HUNDREDS OF MILLIONS OF DOLLARS TO THE TOTAL COST OF THE UNDERTAKING IT COULDN'T BE DETERMINED HOW MUCH MR TURNER PLANS TO INCREASE PRODUCTION BUT ONE PERSON INVOLVED IN THE NEGOTIATIONS SAID THE CHANGE WOULD BE MODEST TIME WARNER HAD VEHEMENTLY OPPOSED THE TRANSACTION WHILE TELECOMMUNICATIONS INC ANOTHER MAJOR TURNER SHAREHOLDER WITH A 224 FULLY DILUTED STAKE HAS INDICATED ITS SUPPORT SUPPORTERS OF THE TRANSACTION HAVE CHARACTERIZED TIME WARNER'S OPPOSITION AS A MATTER OF SELFINTEREST ACCORDING TO PEOPLE INVOLVED IN THE NEGOTIATIONS TIME WARNER WANTED TO PROTECT ITS OWN FILM STUDIO WARNER BROS FROM A NEW AND POTENTIALLY STRONG RIVAL THAT WOULD BE POSED BY THE COMBINATION OF NEW LINE AND CASTLE ROCK INDEED TURNER INSIDERS WORRY THAT TIME WARNER COULD YET VOTE TO ALLOW TURNER TO BUY ONE BUT NOT BOTH FILM COMPANIES WHEN THE BOARD REVIEWS THE PROPOSAL TODAY ACCORDING TO ONE PERSON CLOSE TO THE TURNER CAMP EXECUTIVES FAMILIAR WITH THE TALKS SAID TIME WARNER EXECUTIVES TRIED TO PERSUADE TURNER TO PRODUCE FEATURE FILMS UNDER ITS CURRENT STRUCTURE AND DISTRIBUTE THEM THROUGH WARNER BROS IN EFFECT TURNER WOULD HAVE BECOME ANOTHER SUPPLIER FOR WARNER BROS ACCORDING TO THIS VIEW BUT MR TURNER WHO OWNS THE MGM LIBRARY REBUFFED TIME WARNER HE HAS LONG SOUGHT TO MOVE INTO HOLLYWOOD TO SECURE A STEADY SUPPLY OF FRESH FEATURE FILMS TO FEED HIS NETWORKS TIME WARNER INSIDERS ACKNOWLEDGE THEY OPPOSED THE TRANSACTION BUT SAY THEY DID SO FOR DIFFERENT REASONS THEY RECOGNIZE TURNER'S NEED FOR A CONSISTENT STREAM OF NEW FILMS TO SUPPLY ITS TBS AND TNT CABLE NETWORKS AND SUPPLEMENT ITS CURRENT LIBRARY THAT MAKES A LOT OF SENSE THAT'S A GOOD STRATEGY SAID ONE INSIDER BUT THEY ARGUED THAT THE PRICE WAS TOO HIGH AND THAT THERE WERE OTHER ALTERNATIVES TIME WARNER MADE VARIOUS PROPOSALS BUT GOT NOWHERE PEOPLE CLOSE TO THE SITUATION OFFERED VARIOUS EXPLANATIONS FOR TIME WARNER'S DECISION TO FORGO PRESSING ITS OPPOSITION ONE INSIDER AT TURNER SAID TIME WARNER EXECUTIVES FEARED THAT IF THEY SCUTTLED THIS DEAL MR TURNER MIGHT RESURRECT EFFORTS TO LINK UP WITH MGM/UA ENTERTAINMENT CO OR PARAMOUNT COMMUNICATIONS INC FAR MORE THREATENING RIVALS TO TIME WARNER IN ADDITION TIME WARNER APPARENTLY WOULD HAVE BEEN THE LONE VOTE AGAINST THE DEAL SINCE OTHER REPRESENTATIVES OF THE CABLE INDUSTRY ON TURNER'S BOARD ARE EXPECTED TO SUPPORT IT MOREOVER TIME WARNER WITH A HUGE TURNER STAKE HAS A BIG INTEREST IN AVOIDING ANY ACTION THAT MIGHT HURT TURNER'S STOCK PRICE TURNER SHARES HAVE RISEN ON NEWS OF THE TALKS ANITA SHARPE IN ATLANTA CONTRIBUTED TO THIS ARTICLE 9308170098 930817 INTERNATIONAL VW REPORTS 409 MILLION JULY PROFIT AGAINST BACKDROP OF LOPEZ CONTROVERSY BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL VOLKSWAGEN AG SAID IT MADE AFTERTAX PROFIT OF 70 MILLION MARKS US409 MILLION AT THE PARENT COMPANY IN JULY MARKING WHAT IT CLAIMED IS PROOF THAT THE TROUBLED GERMAN CAR COMPANY'S PROMISED TURNAROUND IS UNDER WAY BUT COMING AMID A WIDENING CONTROVERSY SURROUNDING FORMER GENERAL MOTORS CORP PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA WHO JUMPED TO VW WITH SEVERAL OF HIS GM UNDERLINGS AND HAS BEEN ACCUSED BY GM OF INDUSTRIAL ESPIONAGE THE ATTEMPT TO HIGHLIGHT GOOD ECONOMIC NEWS DID LITTLE TO SUPPORT VW SHARES THEY DROPPED 720 MARKS 421 YESTERDAY TO CLOSE IN FRANKFURT AT 39230 MARKS IN LIGHT OF RECENT GERMAN NEWS REPORTS THAT VW EMPLOYEES MAY HAVE ENGAGED IN A CAMPAIGN TO ENTER SECRET DATA FROM GM AND ADAM OPEL AG GM'S GERMAN SUBIDIARY ON TO VW COMPUTERS TRADERS WERE EAGER TO BAIL OUT OF VW STOCK ALTHOUGH THE PUBLIC PROSECUTOR'S OFFICE WOULDN'T COMMENT ON REPORTS OF DATA ENTRY AT VW THE PACE AND INTENSITY OF THE INVESTIGATION HAVE INCREASED SIGNIFICANTLY INTO WHETHER THE FORMER GM EXECUTIVES BROUGHT SECRET GM DOCUMENTS WHEN THEY SWITCHED COMPANIES NO CHARGES HAVE BEEN FILED VW CHAIRMAN FERDINAND PIECH MEANWHILE CONTINUED TO STAND BY MR LOPEZ SAYING IN A TELEVISION INTERVIEW THAT HE WOULD LAY HIS HAND IN THE FIRE FOR HIM CONCERNING THE REPORTS OF OPEL DOCUMENTS BEING COPIED AND ENTERED INTO VW COMPUTERS MR PIECH SAID THAT THERE EXIST NO SECRET DOCUMENTS THAT EVER UNDERWENT SUCH A PROCESS ATTEMPTING TO TURN PUBLIC ATTENTION BACK ONTO VW'S RESTRUCTURING SUCCESSES MR PIECH SAID THERE WAS A SHIMMER ON THE HORIZON OF IMPROVEMENT IN THE COMPANY'S OUTLOOK A VW SPOKESMAN SAID THAT JULY CAR SALES FIGURES WEREN'T YET AVAILABLE BUT THAT DELIVERIES TO AUTO DEALERS WERE QUALITATIVELY BETTER THAN LAST YEAR'S LEVELS FOR THE VW BRAND IN THE GERMAN MARKET IN THE FIRST HALF VW GROUP CAR SALES PLUNGED 225 FROM THE FIRST SIX MONTHS OF 1992 ANALYSTS SAID VW'S PROFIT ANNOUNCEMENT MONDAY PROVIDES LITTLE MEANINGFUL INDICATION OF WHAT IS HAPPENING IN THE COMPANY AS VW DIDN'T SAY WHAT THE 70 MILLION MARK FIGURE INCLUDES AND HOW THAT COMPARES WITH YEARAGO FIGURES WE DON'T HAVE COMPARATIVE NUMBERS BECAUSE WE USUALLY DON'T ANNOUNCE ONEMONTH FIGURES A VW SPOKESMAN SAID INDICATING THE FIGURES WERE GIVEN JUST TO INDICATE THAT THE COMPANY IS RECOVERING FROM THE STAGGERING 16 BILLION MARK LOSS IN THE FIRST HALF MR PIECH WHO HAD PROMISED SHAREHOLDERS THE COMPANY WOULD BREAK EVEN IN 1993 SAID YESTERDAY HE HASN'T GIVEN UP HOPE FOR SUCH A RESULT BUT NATURALLY THE MARKET CAN'T LEAVE US IN THE LURCH HE SAID 9308170097 930817 ECONOMY US IS UNLIKELY TO ACT TO HALT SURGE OF YEN AS JAPAN'S CURRENCY NEARS PARITY WITH THE DOLLAR FOCUS IS ON TRADE ISSUES BY ALAN MURRAY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US APPEARS UNLIKELY TO ACT TO HALT THE YEN'S SURGE EVEN AS THE JAPANESE CURRENCY APPROACHES SOCALLED PARITY WITH THE DOLLAR US OFFICIALS ARE KEEPING QUIET ABOUT THE JAPANESE CURRENCY'S RISE WHICH ON TUESDAY IN TOKYO BROUGHT IT TO YET ANOTHER RECORD 10048 YEN TO THE DOLLAR THE YEN IS EXPECTED TO SOON REACH DOLLAR PARITY A LEVEL OF ONE YEN FOR EACH PENNY BUT OFFICIALS IN WASHINGTON APPARENTLY SEE NO REASON TO BE CONCERNED AS LONG AS CURRENCY MOVEMENTS REMAIN ORDERLY INDEED A STRONGER YEN IS THOUGHT TO BE A KEY COMPONENT OF THE CLINTON ADMINISTRATION'S TRADE STRATEGY OFFICIALS ARE SAID TO BE HOPING THAT THE RISE IN THE YEN THAT HAS OCCURRED IN RECENT MONTHS WILL MAKE A BIG DENT IN JAPAN'S TRADE SURPLUS OVER THE NEXT FEW YEARS A HIGHER YEN MAKES JAPANESE EXPORTS MORE EXPENSIVE ON THE WORLD MARKET AND ALLOWS OTHER COUNTRIES' PRODUCTS TO BE SOLD LESS EXPENSIVELY IN JAPAN THE NEW JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA HAS EXPRESSED CONCERN OVER THE YEN'S RISE FOR FEAR IT WILL HURT HIS NATION'S EXPORT INDUSTRIES MR HOSOKAWA HAS BEEN QUOTED RECENTLY AS SAYING THAT COORDINATED INTERVENTION IN THE FOREIGN EXCHANGE MARKETS BY THE GROUP OF SEVEN INDUSTRIALIZED NATIONS MAY BE NEEDED TO HALT THE YEN'S RISE BUT THERE ARE NO SIGNS THAT THE G7 IS PREPARING TO FOLLOW UP ON THAT IDEA INSTEAD GLOBAL FINANCIAL OFFICIALS SEEM TO BE LEAVING JAPAN TO DEAL WITH ITS ECONOMIC AND CURRENCY PROBLEMS ON ITS OWN FEDERAL RESERVE OFFICIALS ALSO APPEAR UNCONCERNED ABOUT THE DOLLAR'S RECENT DECLINE AGAINST THE YEN WHILE A GENERAL DECLINE IN THE DOLLAR CAN CAUSE AN INCREASE IN INFLATIONARY PRESSURES HERE BY THREATENING TO BOOST PRICES FOR IMPORTS THE RECENT DROP IN THE DOLLARYEN RATE OCCURS AT A TIME WHEN THE DOLLAR IS SHOWING STRENGTH AGAINST OTHER CURRENCIES MOREOVER RECENT STRENGTH IN THE LONGTERM BOND MARKET HAS GIVEN FED OFFICIALS LITTLE REASON TO FEAR THAT INFLATION IS ON THE RISE UNTIL RECENTLY US OFFICIALS HAVE URGED THE JAPANESE GOVERNMENT TO USE INCREASED GOVERNMENT SPENDING RATHER THAN LOWER INTEREST RATES TO STIMULATE ITS SAGGING ECONOMY THAT'S BECAUSE GOVERNMENT SPENDING IS MORE LIKELY TO RESULT IN INCREASED IMPORTS BUT WITH THE YEN REACHING NEW HIGHS US OFFICIALS ARE NOW WILLING TO BE MORE TOLERANT OF A CUT IN JAPANESE RATES AND THEY ARGUE THAT A RATE CUT BY THE JAPANESE CENTRAL BANK WOULD DO MORE TO STIMULATE THE ECONOMY AND DAMP THE YEN'S RISE THAN ANY INTERVENTION IN EXCHANGE MARKETS WHEN GOVERNMENTS INTERVENE IN FOREIGN EXCHANGE MARKETS THEY BUY OR SELL A CURRENCY IN LARGE QUANTITIES TO INCREASE OR DECREASE ITS VALUE WILLIAM CLINE A SENIOR FELLOW AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS SAYS THAT AT CURRENT LEVELS THE YENDOLLAR RELATIONSHIP IS STILL NOT OUT OF LINE WITH THE FUNDAMENTALS OF THE US AND JAPANESE ECONOMIES YOU WOULDN'T WANT TO CONSIDER INTERVENING TO WEAKEN THE YEN UNTIL IT GOT CLOSER TO 95 YEN TO THE DOLLAR MR CLINE SAID IT WOULD BE A MISTAKE TO INTERVENE IN FOREIGN EXCHANGE MARKETS AT ANYTHING THIS SIDE OF 100 YEN TO THE DOLLAR MR CLINE SAID THE EXCHANGE RATE IS LIKE A TENNIS BALL IF YOU STOP IT IT BOUNCES BACK UP IN THE OTHER DIRECTION 9308170096 930817 BUSINESS BRIEF ASSOCIATED NATURAL GAS CORP LETTER OF INTENT IS SIGNED FOR SOME ENDEVCO ASSETS ASSOCIATED NATURAL GAS CORP DENVER SAID IT SIGNED A LETTER OF INTENT WITH THE NOTEHOLDERS OF ENDEVCO INC TO BUY FOUR NATURAL GAS PIPELINE SYSTEMS AND CERTAIN CONTRACTUAL GAS STORAGE RIGHTS THAT ARE TO BE TRANSFERRED TO THE NOTEHOLDERS ON CONFIRMATION OF ENDEVCO'S PREPACKAGED CHAPTER 11 REORGANIZATION PLAN TERMS WEREN'T DISCLOSED THE ASSETS INCLUDE THE 63MILE ADA GAS GATHERING SYSTEM IN BIENVILLE AND WEBSTER PARISHES LA THE SEVENMILE CHALYBEATE SPRINGS PIPELINE SYSTEM IN CLAIBORNE PARISH LA AND COLUMBIA COUNTY ARK THE 12MILE LEAF RIVER PIPELINE SYSTEM IN PERRY AND FOREST COUNTIES MISS THE 465MILE INTRASTATE MISSISSIPPI FUELS PIPELINE SYSTEM AND STORAGE RIGHTS UP TO 300 BILLION BRITISH THERMAL UNITS IN THE HATTIESBURG GAS STORAGE FACILITY IN JUNE ENDEVCO BASED IN DALLAS SAID ITS REORGANIZATION PLAN CALLED FOR CEDING THOSE ASSETS TO LENDERS TO WIPE OUT 441 MILLION IN DEBT 9308170095 930817 MANAGING RISK CORPORATE TREASURERS ADOPT HEDGING PLANS WITH SOME WARINESS THEY FEAR COMPLEX MOVES USING DICEY DERIVATIVES MAY BRING NEW PROBLEMS OVERALL GAME PLAN IS CRUCIAL BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL HARDLY A MONTH GOES BY THAT AN INVESTMENT OR COMMERCIAL BANKER DOESN'T SUGGEST TO ROGER MATTHEWS OF ALLIEDSIGNAL CORP A NEW WAY TO MANAGE INTERESTRATE AND FOREIGNCURRENCY RISKS BUT JUST AS THESE FINANCIAL ENGINEERS ARE DEVISING INCREASINGLY COMPLEX STRATAGEMS FOR ELIMINATING CORPORATE TREASURERS' WORST NIGHTMARES MANY TREASURY OFFICIALS SUCH AS MR MATTHEWS ARE BALKING THE REASON THESE NEWFANGLED TECHNIQUES FOR HEDGING AGAINST RISK OFTEN CREATE NEW RISKS REQUIRING EVENCLOSER MANAGEMENT SOME OF THE ONES WITH BELLS AND WHISTLES FORCE YOU TO TAKE BETS FOUR AND FIVE YEARS OUT MR MATTHEWS COMPLAINS HOW FAR TO DIP INTO THE RISKMANAGEMENT WATERS IS BEING HOTLY DEBATED BY THE EXECUTIVES WHO SAFEGUARD THE MONEY FLOWS INTO AND OUT OF US CORPORATIONS MORE AND MORE CORPORATE TREASURERS ARE REALIZING THE NEED FOR SOME HEDGING AND ARE LEARNING HOW TO GO ABOUT IT HOWEVER THEY ALSO ARE BECOMING INCREASINGLY LEERY OF COMPLEX HEDGES AND EVEN WHEN THEY OPT FOR THE SIMPLEST SAFEST MANEUVERS THEY WORRY THAT THE PARTY ON THE OTHER SIDE OF A HEDGE TRANSACTION THE COUNTERPARTY MIGHT NOT HOLD UP ITS END OF THE BARGAIN IT MAY FAIL TO PAY UP WHEN THE DEAL EXPIRES THE WATERS ARE ALREADY MUDDY BECAUSE THESE HEDGES EMPLOY DERIVATIVES HYBRID FINANCIAL ARRANGEMENTS INVOLVING A SECURITY OR FINANCIAL TRANSACTION WHOSE PRICES MOVE ACCORDING TO CHANGES IN ONE OR MORE UNDERLYING VARIABLES SUCH AS STOCK MARKETS INTEREST RATES CURRENCIES AND COMMODITY PRICES THAT RAISES ANOTHER QUESTION WHEN TO ACT LIKE A TRADER AND REEL IN A PROFITABLE DERIVATIVE HEDGE TO SOME PEOPLE JUST OPENING THE DOOR TO DERIVATIVE RISK MANAGEMENT IS COURTING TEMPTATION MANY COMPANIES ARE NERVOUS ABOUT HAVING A GUY GO NUTS AND FINDING SOMEDAY THERE ARE A NUMBER OF UNCOVERED CONTRACTS IN HIS DRAWER SAYS ENNIUS BERGSMA COHEAD OF THE CORPORATEFINANCE PRACTICE AT MCKINSEY & CO THOUGH UNUSUAL THAT DISASTER COULD STRIKE IF A COMPANY DOESN'T HAVE EXISTING DEBT OR FOREIGN OPERATIONS AS AN OFFSET THAT BENEFITS AS A DERIVATIVE UNPREDICTABLY HEADS SOUTH THE JAPANESE AFFILIATE OF ROYAL DUTCH/SHELL GROUP FOR INSTANCE SAID EARLIER THIS YEAR IT EXPECTED TO TAKE A LOSS OF MORE THAN 1 BILLION ON UNAUTHORIZED FOREIGNEXCHANGE TRADING NONETHELESS DERIVATIVES HELP MOST CORPORATIONS USING THEM IN THEIR SIMPLEST MOST COMMONLY USED FORM A SWAP OF OPPOSITE EXPOSURES BETWEEN TWO PARTIES THEY CAN SAVE MONEY BY EXCHANGING FIXEDRATE FOR FLOATINGRATE DEBT AND/OR PAYMENTS IN ONE CURRENCY FOR ANOTHER AT MCDONALD'S CORP DERIVATIVES PROVIDE US RESTAURANT FRANCHISEES WITH FINANCING THAT IS AS MUCH AS TWO PERCENTAGE POINTS CHEAPER THAN CONVENTIONAL LOANS THAT HELPS THEM LOWER THE COST OF BURGERS TO OUR CUSTOMERS AND BEAT THE OTHER GUY SAYS CARLETON PEARL THE FASTFOOD COMPANY'S TREASURER BUT ALTHOUGH MANY COMPANIES USE DERIVATIVES FOR CAPITALRAISING SAYS JAMES HEALY A MANAGING DIRECTOR OF CREDIT SUISSE FINANCIAL PRODUCTS THEY ARE ONLY JUST BEGINNING TO USE THEM FOR BROADER RISKMANAGEMENT PURPOSES IN THAT CAPACITY DERIVATIVES CAN SERVE AS INSURANCE ON EVERYDAY INTERESTRATE CURRENCY OR COMMODITY EXPOSURES AS WELL AS ONETIME TRANSACTIONS SLATED TO CLOSE ON SOME FUTURE DATE IN ADDITION TO SWAPS FIRMS CAN EMPLOY OPTIONS FUTURES AND FORWARD CONTRACTS EITHER TRADED ON FINANCIAL EXCHANGES OR SPECIALLY ARRANGED IN INCREASINGLY ARTFUL COMBINATIONS BY BANKERS MANY COMPANIES HAVE LEARNED NOT TO DABBLE IN THE LATEST DERIVATIVERISK PLAYS WITHOUT AN OVERALL GAME PLAN BUYERS BEWARE WARNS BRIAN HEIDTKE TREASURER OF COLGATEPALMOLIVE CO AND A RECENT CHAIRMAN OF THE NATIONAL ASSOCIATION OF CORPORATE TREASURERS BANKERS ARE VERY ASSERTIVE AND AGGRESSIVE IN PRESENTING THE POSSIBILITIES WITHOUT HAVING THOUGHT THROUGH THE APPLICATION TO PARTICULAR CASES HE CONTENDS IN ADDITION BANKERS DRAWING UP THESE DEALS WITH THEMSELVES AS PRINCIPALS HAVE AN EDGE BY VIRTUE OF THEIR EXPERTISE IT'S A MISTAKE FOR AN INDUSTRIAL COMPANY TO THINK IT CAN TRADE SUCCESSFULLY AGAINST THE GOLDMAN SACHS OF THE WORLD MR HEIDTKE OBSERVES AT DOW CHEMICAL CO AN ACTIVE ASTUTE USER OF DERIVATIVES TREASURER J PEDRO REINHARD SECONDS SUCH WARNINGS IN A CHICAGO BOARD OF TRADE VIDEOTAPE SAYING LOTS OF TREASURERS HAVE BEEN BURNED BY TAKING A PRODUCT PEDDLED BY THEIR FAVORITE COMMERCIAL BANKER WITHOUT KNOWING THE RISKS THEY WERE INCURRING THE CBOT ARGUES THAT EXCHANGETRADED OPTIONS AND FUTURES ARE SAFER IN COUNTERPARTY RISK AND LESS COSTLY THAN THOSE SOLD BY BANKERS SOMETIMES IT MAY BE BETTER NOT TO HEDGE AT ALL IF FOR EXAMPLE THE UNDERLYING MARKET IS GOING IN A COMPANY'S FAVOR AND THE COMPANY IS HEDGED BUT ITS COMPETITORS AREN'T THE HEDGED COMPANY'S GAIN IN THE MARKET WILL BE OFFSET BY THE LOSS ON ITS HEDGE WHILE COMPETITORS WILL PICK UP THE WHOLE GAIN MOREOVER A SHORTTERM BENEFIT FROM A HEDGE CAN INCUR FUTURE RISK AS A DERIVATIVES DEAL RECENTLY OFFERED TO ALLIEDSIGNAL'S MR MATTHEWS SHOWS THE DEAL WAS PRESENTED TO HIM AS A WAY TO CUT COSTS ON 100 MILLION OF OUTSTANDING FIXEDRATE DEBT BY ENTERING INTO A MULTIPLE SWAP OF PAYMENT OBLIGATIONS CREATED TO PRODUCE A SHORTTERM PROFIT ALLIEDSIGNAL FOR THE NEXT THREE YEARS WOULD NET AN ANNUAL INTEREST SAVINGS OF APPROXIMATELY 06 PERCENTAGE POINT THAT PROFIT COULD BE USED TO REDUCE THE INTEREST COST OF THE OUTSTANDING DEBT AFTER THAT THE AUTOMOTIVE AND AEROSPACE EQUIPMENT MAKER WOULD PAY THE THENPREVAILING FLOATING RATE FOR THE REMAINING TWO YEARS UNTIL MATURITY WHILE RECEIVING 545 ANNUALLY ON THE AMOUNT SWAPPED THE SAVINGS FROM THE FIRST THREE YEARS WOULD ACT AS A BUFFER IF THE FLOATING RATE WENT ABOVE 545 IN YEARS FOUR AND FIVE PUT THAT WAY THIS PLAY ON THE INTEREST YIELD CURVE WASN'T A BAD IDEA MR MATTHEWS DIDN'T BITE HOWEVER I HAVE A HANDLE ON WHAT I THINK RATES WILL DO OVER THE NEXT 12 TO 18 MONTHS HE SAYS BUT THERE'S TOO MUCH UNCERTAINTY ON INTEREST RATES BEYOND THAT TO DETERMINE IF THE BREAKEVEN RATE WOULD BE EXCEEDED IN THE LAST TWO YEARS THE COST OF ARRANGING A DERIVATIVES HEDGE CAN ALSO SEEM EXCESSIVE TO TRADITIONALISTS WHO HAVE ALWAYS MANAGED CURRENCY AND INTERESTRATE RISKS THROUGH ADJUSTMENTS TO OPERATIONS SUCH AS SHIFTING THE MIX OF FLOATING AND FIXEDRATE DEBT AND CHANGING FOREIGN PRICING AND SUPPLIERS DERIVATIVES MAY BE A GOOD HEDGE AGAINST ONETIME EXPOSURES SUCH AS A FUTURE PURCHASE OF GOODS BUT WHEN YOU'RE IN BUSINESS WORLDWIDE YOU MUST UNDERSTAND THE RISKS AND MANAGE THEM WITHIN YOUR BUSINESS SAYS GERALD FICHENSCHER CHIEF FINANCIAL OFFICER OF UNIROYAL CHEMICAL CO IF YOU DO BUSINESS IN A CURRENCY THAT DEVALUES LIKE IN EUROPE IN RECENT MONTHS YOU RAISE PRICES TO STAY EVEN NOT PROTECT YOURSELF WITH SOME MAGICAL DERIVATIVE INSTRUMENT WHOSE COSTS MAY EXCEED THE BENEFITS HE EXPLAINS NEVERTHELESS MANY EXPERTS ADVOCATE ADOPTION OF A DERIVATIVE RISKMANAGEMENT STRATEGY WITH WHAT'S AVAILABLE TODAY THERE'S NO REASON ANY KIND OF BUSINESS SHOULD SUFFER BECAUSE OF INTERESTRATE OR CURRENCY RISK SAYS NICHOLAS MITSOS MANAGING DIRECTOR OF FINANCIAL SCIENCES CORP A NEW YORK CONSULTING FIRM THE SAVINGS AND LOAN DISASTER HE CONTENDS COULD HAVE BEEN PREVENTED IF SWAPS OR OTHER DERIVATIVES HAD BEEN AVAILABLE TO PROTECT THE THRIFT INSTITUTIONS' FIXEDRATE HOME LOANS AGAINST RISING INTEREST RATES SIMILARLY A FAILURE TO HEDGE FOREIGNCURRENCY RISKS HAS BROUGHT DOWN SOME COMPANIES BRITAIN'S LAKER AIRWAYS HIT THE SKIDS IN THE EARLY 1980S FOR INSTANCE BECAUSE ABOUT HALF OF ITS TRANSATLANTIC AIR TRAVEL WAS PAID FOR IN POUNDS STERLING THAT WEREN'T HEDGED WITH FOREIGNCURRENCY FUTURES OR FORWARD CONTRACTS CURRENCY SWINGS MADE THE TRANSLATION OF THAT REVENUE BACK TO DOLLARS INSUFFICIENT TO COVER DOLLARBASED FUEL AND INTEREST EXPENSES CURRENTLY THE STRONGEST ARGUMENT FOR DERIVATIVES IS THAT FINANCIAL MARKETS HAVE BEEN MORE VOLATILE THE TURMOIL IN EUROPE'S EXCHANGE RATE MECHANISM LAST SEPTEMBER MADE BELIEVERS OF MANY CORPORATE TREASURERS WHO SCURRIED FOR PROTECTION AT SUDDENLY INFLATED PRICES FOR OPTIONS FUTURES AND FORWARD CONTRACTS MR BERGSMA OF MCKINSEY NOTES THAT AS BUSINESS BECOMES MORE GLOBALLY COMPETITIVE EVEN DOMESTIC COMPANIES MAY NEED THE ADDED PROTECTION OF DERIVATIVES THEY NEED TO UNDERSTAND THE RELATIVE COST STRUCTURE AT WHICH COMPETITORS PRODUCE HE SAYS CITING THE CASE OF A MIDWESTERN PULP MILL THAT SELLS IN THE US AGAINST SWEDISH IMPORTERS BECAUSE OF CURRENCY MOVEMENTS THE SWEDISH COMPANY MAY BE ABLE TO UNDERPRICE THE US MILL WHEN THE DOLLAR STRENGTHENS AGAINST THE KRONE AT THE SAME TIME MORE AND MORE FOREIGN CUSTOMERS AND SUPPLIERS ARE MAKING IT TOUGHER FOR TREASURERS TO OFFSET CURRENCY RISKS THE OLDFASHIONED WAY THROUGH THE KIND OF OPERATIONAL ADJUSTMENTS EMPLOYED BY UNIROYAL THEY EXPECT FIXED PRICES ON FUTURE TRANSACTIONS NOTES ARIEL SALAMA A MANAGING DIRECTOR OF BANKERS TRUST CO WITH COMPETITIVE PRESSURE DRIVING US TO GIVE FIXEDPRICE BIDS AMERICAN TELEPHONE & TELEGRAPH CO NOW USES DERIVATIVES TO HEDGE CURRENCY RISK ON ITS FOREIGN SALES OF SWITCHING AND TRANSMISSION EQUIPMENT SAYS LAWRENCE PRENDERGAST TREASURER PREVIOUSLY EVEN THOUGH PAYMENTS WEREN'T MADE UNTIL DELIVERY SIX OR EIGHT MONTHS LATER WE OFTEN BUILT CONDITIONS ON CURRENCY MOVEMENTS INTO THE CONTRACT LIKE MANY COMPANIES EASTMAN KODAK CO SEES NO REASON TO RULE OUT EITHER DERIVATIVES OR TRADITIONAL OPERATIONAL HEDGES FOR MANAGING EVERYDAY RISKS SAYS DAVID FIEDLER WHO DIRECTS A SIXPERSON FOREIGNEXCHANGE PLANNING GROUP IT'S ONE THING TO THINK ABOUT PUTTING A PLANT SOMEWHERE TO REDUCE EXCHANGE RISK BUT THAT'S MORE PERMANENT THAN USING FORWARD CONTRACTS YOU CAN TAKE OFF IMMEDIATELY IF THEY'RE HEADED THE WRONG WAY THE DANGER OF STEPPING OVER THE LINE FROM PURE HEDGING TO SPECULATION CAN ARISE IF A PROFITABLE DERIVATIVES POSITION IS LIQUIDATED BEFORE IT FALLS DUE A FEW SIZABLE PROFITS COULD LEAD TO TEMPTATION TO DEVELOP A TRADING MENTALITY TO GET IN AND OUT FREQUENTLY COLGATE'S MR HEIDTKE SAYS TREASURERS SAY THEY GUARD AGAINST SUCH TRADING BECAUSE NEITHER THEIR DIRECTORS NOR THEIR STOCKHOLDERS EXPECT THEM TO OPERATE FOR PROFIT FRED ZUCKERMAN TREASURER OF RJR NABISCO HOLDINGS CORP SAYS RJR'S TRADERS SOMETIMES LOCK IN PROFITS BUT ONLY AS PART OF BASIC RISK MANAGEMENT WE'RE IN THE BUSINESS OF CIGARETTES AND COOKIES OUR OBJECTIVE HERE IN THE TREASURY DEPARTMENT IS TO CREATE GREATER PREDICTIVITY OF FINANCIAL RESULTS HE ADDS KODAK'S STRATEGY IS MORE AGGRESSIVE ON EXISTING EXPOSURES IT GIVES ITS TRADERS BONUSES IF THEY DO BETTER THAN A 100 HEDGED STANDARD MR FIEDLER SAYS HE ADDS THAT DEPENDING ON HOW FIRMLY A COMPANY BELIEVES IT CAN ANTICIPATE MARKET MOVEMENTS IT MAY BE BETTER OFF KEEPING ITS BASIC RISK WITHOUT A HEDGE HOWEVER KODAK HAS BACKED AWAY FROM ESTABLISHING DERIVATIVE POSITIONS WITHOUT AN UNDERLYING RISK TO MANAGE IT SHUT DOWN A SPECULATIVETRADING OPERATION LAST FALL HE SAYS BECAUSE ONE OF ITS PURPOSES GATHERING MARKET INTELLIGENCE COULD BE MET ELSEWHERE MOREOVER HE ADDS IT WAS GETTING HARDER TO FIND GOLD AS THE VOLATILITY OF CURRENCY MARKETS INCREASED UNCERTAINTY OVER ACCOUNTING RULES ALSO KEEPS MANY CORPORATIONS FROM GETTING VERY VENTURESOME THE FINANCIAL ACCOUNTING STANDARDS BOARD IS CONSIDERING REQUIRING MARKTOMARKET QUARTERLY ACCOUNTING FOR DERIVATIVE HEDGES ON ANTICIPATED TRANSACTIONS THAT ARE NOT UNDER CONTRACT UNDER HEDGE ACCOUNTING WHERE DERIVATIVE PRICING OFFSETS MOVEMENTS IN UNDERLYING ASSETS THERE IS NO NET IMPACT ON THE PROFITANDLOSS STATEMENT FROM MARKET CHANGES BUT WHILE MANY CORPORATIONS ARE TURNING DOWN THE MORE COMPLEX DERIVATIVE STRATEGIES THEY ARE GRADUALLY ACCEPTING THE SIMPLE APPROACHES FOR ONE THING INVESTMENT BANKERS ARE BECOMING MORE ADEPT AT COUNTERING THE OBJECTIONS RAISED BY TREASURERS WE'VE HEARD THEM ALL AND WE HAVE RESPONSES FOR EACH MR SALAMA OF BANKERS TRUST SAYS AT THE SAME TIME TREASURERS ARE DEVELOPING THE EXPERTISE TO ASSESS PROPOSALS RATHER THAN ACCEPTING OR REJECTING THEM OUT OF HAND EVEN SOME STAUNCH DEFENDERS OF MANAGING EVERYDAY RISKS IN OLDFASHIONED WAYS ARE GIVING IN COLGATE'S MR HEIDTKE HAS USED DERIVATIVES ONLY SPARINGLY BUT RECENTLY AN INVESTMENT BANKER PRESENTED SOME NEW WAYS TO MANAGE A COMBINATION OF INTERESTRATE AND CURRENCY EXPOSURES I MUST SAY I FOUND IT FAIRLY INTRIGUING SOME LIGHTS ARE GOING ON 9308170094 930817 ABREAST OF THE MARKET STOCKS RISE AS AT&TMCCAW DEAL STIRS HOPES FOR MORE TAKEOVERS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCK PRICES CLIMBED AFTER A MULTIBILLIONDOLLAR CONSOLIDATION PLAN SENT INVESTORS SCRAMBLING TO SNAP UP STOCKS OF OTHER POTENTIAL TAKEOVER CANDIDATES IN ONE OF THE BIGGEST ACQUISITIONS EVER AMERICAN TELEPHONE & TELEGRAPH SAID IT HAD AGREED TO BUY MCCAW CELLULAR COMMUNICATIONS A CELLULAR TELEPHONE CONCERN FOR 126 BILLION IN STOCK THE DOW JONES INDUSTRIAL AVERAGE CLOSED WITH A GAIN OF 950 POINTS TO 357915 ABOUT FOUR POINTS SHORT OF AN ALLTIME HIGH AFTER TRADING WELL INTO RECORD TERRITORY DURING THE DAY STANDARD & POOR'S 500STOCK INDEX WHICH HAS BEEN STRUGGLING TO RALLY ADVANCED THE S&P JUMPED 224 POINTS TO 45238 THE FIRST TIME IT HAS CLOSED ABOVE 451 SINCE JUNE 28 WHILE THE INDUSTRIAL AVERAGE HAS BEEN HITTING NEW HIGHS WEEK AFTER WEEK THE S&P HAS YET TO BREAK THROUGH ITS RECORD OF 45633 SET MARCH 10 MEANWHILE THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 086 TO 25056 AND THE AMERICAN STOCK EXCHANGE'S MARKET VALUE INDEX GAINED 225 TO 44133 A NEW RECORD ADVANCING ISSUES BEAT DECLINERS 1161 TO 793 ON THE BIG BOARD VOLUME ON THE BIG BOARD CLIMBED TO 229190000 SHARES FROM 212750000 FRIDAY THE NEWS OF THE AT&TMCCAW ACCORD RIPPLED THROUGH THE STOCK MARKET PUSHING CELLULAR SEMICONDUCTOR AND BIOTECHNOLOGY STOCKS SHARPLY HIGHER MANY OF THE STOCKS IN THESE GROUPS ARE CONSIDERED RIPE FOR TAKEOVER FURTHERMORE WITH INTEREST RATES CONTINUING TO SLIDE THE YIELD ON THE TREASURY'S 30YEAR BOND FELL TO 630 YESTERDAY SOME ANALYSTS PREDICTED THAT THERE WILL BE MORE COMPANIES MAKING STRATEGIC ACQUISITIONS IN THE COMING MONTHS WE COULD WELL BE ENTERING A PERIOD OF SELECTIVE CONSOLIDATIONS SAID WILLIAM DODGE CHAIRMAN OF THE INVESTMENT POLICY COMMITTEE AT DEAN WITTER REYNOLDS BUT MR DODGE SAID HE DOESN'T EXPECT ANYTHING LIKE A RETURN TO THE TAKEOVER MANIA OF THE '80S TO THE EXTENT THAT THERE ARE ACQUISITIONS THAT MAKE SENSE STRATEGICALLY THIS ENVIRONMENT OF LOW INTEREST RATES AND RISING CASH FLOW IS VERY CONDUCIVE TO TAKEOVERS HE SAID THE EUPHORIA OVER THE AT&TMCCAW UNION BUOYED OTHER COMMUNICATIONRELATED STOCKS THOUGH MOST OF THE ACTION WAS ON THE OTC MARKET SOME BIG BOARD ISSUES STOLE A BIT OF THE SPOTLIGHT DIGITAL EQUIPMENT CATAPULTED 2 1/8 TO 38 7/8 MCI COMMUNICATIONS SELECTED THE COMPANY TO PROVIDE SPECIALIZED SOFTWARE HARDWARE AND SERVICES FOR NASDAQ'S HIGHSPEED ELECTRONIC TRADING NETWORK SALOMON CLIMBED 2 1/4 TO 48 BILLIONAIRE INVESTOR WARREN BUFFETT HAS NOTIFIED THE FEDERAL TRADE COMMISSION AND JUSTICE DEPARTMENT THAT HE PLANS TO RAISE HIS STAKE IN THE BROKERAGE FIRM TO AS MUCH AS 2499 MR BUFFETT AND HIS COMPANY BERKSHIRE HATHAWAY CURRENTLY HOLD THE EQUIVALENT OF A 143 STAKE IN SALOMON'S VOTING SHARES SANTA FE PACIFIC PIPELINE LOST 1/8 TO 38 THE COMPANY SAID IT WILL TAKE A CHARGE OF ABOUT 10 MILLION IN THE THIRD QUARTER THE CHARGE RELATES TO A SETTLEMENT WITH NAVAJO REFINING BIOCRAFT LABS SLUMPED 4 1/8 TO 26 5/8 THE COMPANY REPORTED THAT FIRSTQUARTER PROFIT SWELLED TO 14 CENTS A SHARE FROM FIVE CENTS A SHARE BUT THE EARNINGS GAINS WERE LOWER THAN ANALYSTS EXPECTED ALLIED RESEARCH LEAPED 3 5/8 TO 16 7/8 IN TRADING ON THE AMERICAN EXCHANGE THE MUNITIONS CONCERN SAID THAT FIRST ALLIED A CLOSELY HELD CONCERN HAS AGREED TO ACQUIRE THE COMPANY FOR 19 A SHARE GENENTECH ROSE 1 1/4 TO 41 3/4 MERRILL LYNCH ANALYST STUART WEISBROD UPGRADED HIS RATING ON THE BIOTECHNOLOGY SECTOR ARGUING THAT THE BEST STOCKS IN THE GROUP ARE UNDERVALUED GENENTECH WAS AMONG THE STOCKS MR WEISBROD RECOMMENDS INVESTORS ACCUMULATE ALUMINUM COMPANY SHARES PERKED UP AFTER REYNOLDS METALS SAID IT WILL CUT CAPACITY BY 9 BECAUSE OF THE WORLDWIDE GLUT IN ALUMINUM THE COMPANY WILL TAKE AN AFTERTAX CHARGE OF 8 MILLION OR 13 CENTS A SHARE TO COVER COSTS RELATED TO THE SHUTDOWN ALUMINUM CO OF AMERICA SOARED 2 1/4 TO 73 7/8 AND MAXXAM CLIMBED 1 1/2 TO 31 3/8 ON THE AMEX BUT REYNOLDS METALS EASED 3/8 TO 49 3/8 VIACOM SANK 2 1/4 TO 59 7/8 ON THE AMEX FIRST BOSTON DOWNGRADED THE COMPANY'S CLASS A SHARES TO HOLD FROM BUY BECAUSE OF RECENT PRICE GAINS 9308170093 930817 CORRECTIONS & AMPLIFICATIONS GITANO GROUP INC ISN'T OPERATING UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE YESTERDAY'S CORPORATE FOCUS ARTICLE ON FASHION DESIGNER DONNA KARAN INCORRECTLY STATED THAT GITANO WAS OPERATING UNDER CHAPTER 11 PROTECTION THE COMPANY'S FOUNDERS THE DABAH FAMILY FILED FOR CHAPTER 11 PROTECTION LAST YEAR A COMPANY NEGOTIATING TO LEND MONEY TO WANG LABORATORIES INC IS CONGRESS FINANCIAL CORP A SUBSIDIARY OF CORESTATES FINANCIAL CORP PHILADELPHIA THE LENDER'S NAME WAS INCORRECTLY GIVEN AS CONGRESS FINANCIAL GROUP IN AN ARTICLE YESTERDAY 9308170092 930817 IN NATION OF CORTINA US SOLDIERS DIE SO THEY MAY LIVE FICTIONAL COUNTRY IS THE SCENE OF MOCK FIGHTS MIMICKING THIRD WORLD INSURGENCIES BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL FORT CHAFFEE ARK THAT'S WHERE I DIED THE OTHER DAY SAYS JAMES ROSS A HUNDRED YARDS LATER HE POINTS TO ANOTHER SPOT ALONG THE ROAD I DIED THERE TOO BUT THIS NECK OF THE WEST ARKANSAS BACKWOODS IS HARDLY UNIQUE FOR MR ROSS I'VE GOT THE REPUTATION OF THE ONE WHO ALWAYS GETS KILLED HE SIGHS USUALLY IT'S A HIDDEN MINE THEN THERE WAS THAT RUNIN WITH A SOLDIER WHO PUT 60 ROUNDS INTO ME FOR NO REASON AT ALL HE SAYS MR ROSS AND HIS 30 COWORKERS HOLD SOME OF THE ODDEST JOBS IN THE US THEY ARE EMPLOYED BY BDM INTERNATIONAL INC A DEFENSECONSULTING FIRM RETAINED BY THE ARMY TO BE CITIZENS OF THE IMAGINARY THIRD WORLD NATION OF CORTINA MR ROSS PLAYS A CORTINIAN FOREST RANGER ONE OF HIS COLLEAGUES REPRESENTS THE ENTIRE CORTINIAN ARMY WHILE OTHERS PLAY POLICEMEN AND LOCAL OFFICIALS THE BULK OF THE ROLEPLAYERS FORM THE CITIZENRIES OF TWO CORTINIAN VILLAGES TUMBLEDOWN SHACKS IN THE BOONIES OF FORT CHAFFEE THE AIM IS ALWAYS REALISM IN ONE VILLAGE A DOG AMBLES DOWN THE DUSTY MAIN STREET WHILE GUANTANEMERA BLARES FROM A CANTINA FOR A WEEK OR SO EACH MONTH CLYDE PICKLE SELLS WEST ARKANSAS REAL ESTATE OTHER TIMES HE MAKES 886 AN HOUR TOTING AN UZI AS AN INSPECTOR IN THE CORTINIAN NATIONAL POLICE MY MOTHER SHE STILL WONDERS WHAT I DO HE SAYS THE ARMY PLAYS THESE GAMES BECAUSE IT HAS DECIDED THAT IT NEEDS TO DO A BETTER JOB OF PREPARING US TROOPS FOR THIRD WORLD HOT SPOTS LIKE SOMALIA SO HERE IN ARKANSAS IT HAS CREATED ITS OWN HELLHOLE TEN TIMES EACH YEAR 5000 US INFANTRY TROOPS COME TO FIGHT THE FICTIONAL PEOPLE'S NATIONAL REVOLUTIONARY MOVEMENT PLAYED BY THE FIRST BATALLION OF THE 509TH PARACHUTE INFANTRY REGIMENT WHILE THEY FIGHT THEY MUST DEAL WITH CIVILIANS THOSE CHALLENGES ARE RELATED THE BETTER THE TROOPS DEAL WITH THE CIVILIANS THE MORE LIKELY IT IS THEY WILL BEAT THE INSURGENTS ALL EXERCISES ARE RUN ON A FREE PLAY BASIS WHICH MEANS THAT THERE ARE SEVERAL BASIC SCENARIOS WRITTEN BY BDM AND ARMY OFFICIALS BUT NO PRECOOKED OUTCOMES HOW THE SOLDIERS HANDLE THE CIVILIANS DETERMINES WHAT COMES NEXT IF TROOPS BULLY VILLAGERS FOR INSTANCE THEY CAN PUSH THAT VILLAGE TO THE SIDE OF THE INSURGENTS PHYSICAL VIOLENCE ISN'T PERMITTED BUT PEOPLE DO GET KILLED WHEN SHOT BY LASEREQUIPPED WEAPONS BOTH SOLDIERS AND CIVILIANS WEAR LASER RECEPTORS THE MOST COMMON PROBLEM THE TROOPS COME ON TOO STRONG SAYS TOMMY COTTON MCGLON WHO IS CAST AS THE MAYOR OF THE INSURGENTLEANING VILLAGE OF LONE STAR LIKE THE TIME AN ARMORED PERSONNEL CARRIER ROARED THROUGH LONE STAR'S ONE STREET FIRING A 50CALIBER MACHINE GUN ON THE FAR SIDE OF THE VILLAGE THE ARMY VEHICLE BROKE DOWN THE SOLDIERS CALLED IN REINFORCEMENTS BUT VILLAGERS SET UP A DETOUR THAT KEPT THE HELP FROM ARRIVING WAVING A WHITE FLAG MR MCGLON STEPPED OUT TO TALK TO THE AMERICANS BUT THE TROOPS ORDERED HIM TO LIE FACEDOWN IN THE MUD INSTEAD HE ROLLED UP THE FLAG A SIGNAL FOR THE REBELS HIDING IN THE SURROUNDING WOODS TO START SHOOTING A LESSON TAUGHT HERE IS THAT COURTESY CAN OFTEN DO MORE THAN FIREPOWER THEY CAN GET A LOT OF HELP FROM PEOPLE IN FOREIGN COUNTRIES JUST BY TREATING THEM WITH SOME RESPECT MR MCGLON SAYS BUT ANOTHER LESSON IS THAT IT DOESN'T PAY TO BE TOO CHUMMY AT AN ARMY CHECKPOINT OUTSIDE THE SECOND VILLAGE CARNIS THE TROOPS HEAR ABOUT A CORTINIAN WOMAN WHO SELLS CANDY AND CIGARETTES FROM A TRUCK SHE IS BROUGHT UP THE HILL AFTER SEVERAL DAYS THE TROOPS BECOME SO RELAXED WITH THE VENDOR THAT THEY LET HER PARK OUTSIDE BATTALION HEADQUARTERS WHERE THE TRUCK EXPLODES IN A TOWERING FIREBALL HOLLYWOOD EXPERTS HAVE TAUGHT THE ARMY HOW TO STAGE SUCH A BLAST COMMUNICATIONS ARE CRUCIAL BOTH IN LISTENING FOR INFORMATION AND PASSING IT ON VILLAGERS FREQUENTLY ASK THE US TROOPS TO PROVIDE WATER ESPECIALLY IN THE SUMMER TROOPS WHO RELAY THE REQUEST TO THEIR OFFICERS OFTEN RECEIVE TIPS ABOUT THE INSURGENTS TROOPS WHO IGNORE THE REQUEST RECEIVE MISINFORMATION TROOPS WHO ARE RUDE ABOUT IT MIGHT RECEIVE SNIPER FIRE IT ISN'T EASY TO MIX COURTESY WITH COMBAT AT A CHECKPOINT NEAR A KEY AIRSTRIP CAPT BOB HARTER RELEASES TWO CORTINIANS CAUGHT LURKING WITHIN AMERICAN DEFENSIVE LINES STRIVING TO BE POLITE HE TELLS A VILLAGE OFFICIAL YOUR CITIZENS HAVE BEEN VERY COOPERATIVE THERE HAVE BEEN ONE OR TWO EXCEPTIONS PEOPLE WHO MAY NOT HAVE GOTTEN THE WORD LIKE THESE GENTLEMEN HERE IT ALL LOOKS CORRECT BUT THE AMERICANS HAVE MESSED UP THE TWO GENTLEMEN BEING RELEASED ARE DEADLY INSURGENTS MOREOVER THE AMERICANS MIGHT HAVE LEARNED THAT IF THEY HAD COMMUNICATED WITH THE CORTINIAN POLICE SOONER THEY HELD THEM FOR SIX HOURS AND NEVER CALLED TO ASK ANY QUESTIONS SAYS A DISDAINFUL BARRY SARTIN PLAYING AN INSPECTOR IN THE CORTINIAN NATIONAL POLICE WARY OF THE CORTINIAN SNAKEPIT SOME ARMY COMMANDERS ORDER THEIR TROOPS TO STEER CLEAR OF THE LOCALS ALTOGETHER WHEN THAT HAPPENS THE ROLEPLAYERS WILL CREATE TRAFFIC JAMS OR SEND REFUGEES MEANDERING THROUGH DEFENSIVE LINES ONCE THEY STAGED A WEDDING PROCESSION SOMETIMES SOLDIERS ARE ASKED TO AUGMENT THE RANKS OF ROLEPLAYERS FOR LARGE EVENTS LIKE EVACUATIONS AND DEMONSTRATIONS ONE SUCH EVENT IS A BIG PROTEST HELD IN WESTERN CORTINA AT DAVIS NATIONAL GUARD AIRFIELD OUTSIDE MUSKOGEE OKLA LED BY LONGHAIRED DARREN MCCONNELL A FULLTIME BDM ROLEPLAYER 30 DEMONSTRATORS MAINLY RANGERS AND SPECIAL FORCES RESERVISTS LEAP FROM VANS IN FRONT OF THE AIR BASE TO HARASS THE TROOPS EVERYBODY KNOWS IT IS AN EXERCISE BUT EMOTIONS NEVERTHELESS RUN HIGH AS THE ARMY AUGMENTEES WARM TO THEIR ROLES AS PROTESTERS RUNNING ALONG THE FENCES AND TAUNTING THE NATIONAL GUARDSMEN ON THE OTHER SIDE OF THE CONCERTINA WIRE AFTER 20 MINUTES MANY OF THE NATIONAL GUARDSMEN SEEM UNNERVED THEN THERE IS A SCUFFLE MR PICKLE PLAYING A CORTINIAN POLICEMAN TRIES TO ARREST MR MCCONNELL THE RINGLEADER WHO FALLS TO THE GROUND AND HAS FAKE BLOOD STREAMING FROM HIS FACE WHILE THE STARTLED GUARDSMEN STARE ONE DEMONSTRATOR HURLS A SATCHEL OF EXPLOSIVES OVER THE FENCE AT THEM THEY SCRAMBLE AND HIT THE GROUND AS IT EXPLODES AN ARMY OBSERVER DECLARES THAT THE MACHINEGUNNER ON A NEARBY HUMVEE A MODERNIZED JEEP IS DEAD ASIDE FROM THAT THE MOCK DEMONSTRATION HAS BEEN SUCCESSFUL THE UNIT COMMUNICATED WELL AND CONTACTED THE CORTINIAN POLICE QUICKLY IT AVOIDED PHYSICAL CONFRONTATION MR MCCONNELL FAULTS THE UNIT ONLY FOR NOT HAVING THE HUMVEES RUNNING WHICH WOULD HAVE LET THE GUNNER AVOID THE BOMB BUT SOME SOLDIERS SEEM A BIT DISCOMBOBULATED BY HOW MUCH THEY HAVE ENJOYED BEING THE OPPOSITION I NEVER THOUGHT I'D JOIN THE ARMY AND CARRY A PICKET GRINS RANGER PVT JUSTIN KIMURA 9308170091 930817 OTC FOCUS OTC MARKET SURGES TO A RECORD HIGH DRIVEN BY AT&T MCCAW MERGER DEAL BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET SURGED TO A RECORD HIGH LED BY SOARING SHARES OF MCCAW CELLULAR COMMUNICATIONS OTHER TELECOMMUNICATIONS STOCKS TECHNOLOGY AND BIOTECHNOLOGY ISSUES THE NASDAQ COMPOSITE INDEX LEAPED 863 OR 12 TO 72689 BREAKING ITS OLD RECORD OF 71877 ADVANCING ISSUES OUTNUMBERED DECLINERS 1416 TO 1382 ON TOTAL VOLUME OF 2456 MILLION SHARES THE RALLY WAS LED BY THE AT&T ACQUISITION OF MCCAW SAID JERRY NEWMAN AN INSTITUTIONAL TRADER AT COWEN & CO IN SAN FRANCISCO BUYERS ALSO CAME IN TO ADD TO POSITIONS IN TECHNOLOGY STOCKS AND THE BIOTECH GROUP FINALLY STARTED TO MOVE OFF ITS OVERSOLD POSITION MCCAW CELLULAR COMMUNICATIONS JUMPED 5 TO 56 1/4 ON 75 MILLION SHARES SIX TIMES ITS NORMAL VOLUME AMERICAN TELEPHONE & TELEGRAPH SIGNED A DEFINITIVE MERGER AGREEMENT WITH MCCAW FOR AN ALLSTOCK TRANSACTION VALUED AT ABOUT 126 BILLION AT&T WHICH TRADES ON THE NEW YORK STOCK EXCHANGE SLID 1 5/8 TO 60 3/4 MCCAW'S CLASS A AND CLASS B COMMON SHARES WILL EACH BE EXCHANGED FOR ONE AT&T SHARE HOWEVER IF AT&T TRADES ABOVE 7173 A SHARE DURING SPECIFIED PERIODS JUST BEFORE THE MERGER'S CLOSE AT&T SAID THE EXCHANGE RATE WILL BE LOWERED TO PROVIDE AT&T STOCK VALUED AT 7173 FOR EACH MCCAW SHARE SUBJECT TO A MINIMUM OF 0909 AT&T SHARES SIMILARLY IF AT&T TRADES BELOW 53 A SHARE DURING CERTAIN PERIODS BEFORE THE MERGER'S CLOSING THE EXCHANGE RATE WILL BE INCREASED TO PROVIDE AT&T STOCK WITH A VALUE OF 53 FOR EACH MCCAW SHARE SUBJECT TO A MAXIMUM OF 1111 AT&T SHARES LIN BROADCASTING 53 OWNED BY MCCAW SOARED 12 3/4 TO 115 MCCAW HAS AN OPTION TO BUY THE REMAINDER OF THE COMPANY IN 1995 ON AUG 2 FIRST BOSTON ADDED LIN BROADCASTING TO ITS FOCUS LIST ANALYST FRANK GOVERNALI SAID HE SEES THE STOCK REACHING 130 A SHARE BY THE END OF 1993 IN A YEAR OR MORE MR GOVERNALI SAID IT COULD RISE TO 140 TO 150 A SHARE CONTINGENT UPON A POSSIBLE DECISION BY MCCAW TO BUY THE COMPANY OUT IN 1995 SHARES OF OTHER CELLULAR OPERATORS WERE BOOSTED BY THE NEWS VANGUARD CELLULAR ROSE 1 3/4 TO 31 1/4 AND CONTEL CELLULAR CLIMBED 1 1/4 TO 18 1/4 THE DAY'S MOST ACTIVE STOCK INTEL SURGED 4 5/8 TO 64 3/8 ON NEARLY 11 MILLION SHARES MORE THAN 2 1/2 TIMES ITS NORMAL VOLUME OTHER BIG TECHNOLOGY STOCKS ALSO POSTED LARGE GAINS MICROSOFT ROSE 2 1/2 TO 77 3/4 CISCO SYSTEMS JUMPED 1 7/8 TO 55 JOSEPHTHAL LYON & ROSS RAISED CISCO TO LONGTERM BUY FROM HOLD BIOTECHNOLOGY STOCKS ROSE AFTER BIOTECH ANALYST STUART WEISBROD OF MERRILL LYNCH & CO UPGRADED HIS INVESTMENT RATING ON THE SECTOR HE SAID THE TOPTIER STOCKS IN THE GROUP ARE UNDERVALUED AND HIGHLY ATTRACTIVE RELATIVE TO THE DRUG GROUP INCLUDED IN HIS RECOMMENDED BASKET ARE AMGEN UP 2 TO 33 1/2 BIOGEN JUMPING 1 5/8 TO 27 1/2 AND GENZYME RISING 2 1/2 TO 31 3/4 SOMATOGEN ROSE 3/4 TO 10 MR WEISBROD RAISED HIS INVESTMENT RATINGS ON SOMATOGEN ASSERTING THAT THE COMPANY HAS BEEN SUCCESSFUL IN ADDRESSING FOUR MAJOR CONCERNS IN THE DEVELOPMENT OF A BLOOD SUBSTITUTE MR WEISBROD RAISED HIS RATING TO ABOVE AVERAGE FOR THE INTERMEDIATE AND LONGTERM FROM A NEUTRAL THE BOULDER COLO COMPANY IS DEVELOPING A REPLACEMENT FOR BLOOD LOST IN SURGERY IRG TECHNOLOGIES TUMBLED 2 15/16 TO 4 THE COMPUTERPARTS DISTRIBUTOR REPORTED EARNINGS FOR ITS FISCAL THIRD QUARTER ENDED JUNE 30 OF NINE CENTS A SHARE DOWN FROM 14 CENTS A YEAR EARLIER FOLLOWING THE DISAPPOINTING RESULTS KEMPER SECURITIES LOWERED IRG TO HOLD FROM STRONG BUY KEMPER ALSO LOWERED ITS FISCAL 1993 EARNINGS ESTIMATE FOR IRG TO 55 CENTS A SHARE FROM 80 CENTS IRG COMPLETED ITS INITIAL PUBLIC OFFERING OF 25 MILLION SHARES AT 7 1/2 A SHARE ON MAY 14 KEMPER SECURITIES WAS A COMANAGER OF THE OFFERING SNAPPLE BEVERAGE LEAPED 4 1/2 TO 43 3/4 THE SOFTDRINK MAKER DECLARED A 2FOR1 COMMON STOCK SPLIT PAYABLE SEPT 24 TO STOCK OF RECORD SEPT 3 THE COMPANY SAID ITS BOARD IS SEEKING APPROVAL TO INCREASE THE NUMBER OF AUTHORIZED COMMON SHARES TO 140 MILLION FROM 70 MILLION TO PERMIT THE PROPOSED SPLIT SHAREHOLDERS WILL VOTE ON THE PROPOSAL AT A MEETING SCHEDULED FOR SEPT 22 SBE INC TOPPLED 2 3/8 TO 8 5/8 THE CONCORD CALIF COMPANY REPORTED EARNINGS FOR ITS FISCAL THIRD QUARTER ENDED JULY 31 OF 23 CENTS A SHARE DOWN FROM 31 CENTS A YEAR EARLIER SBE DESIGNS AND MANUFACTURES MICROCOMPUTER BOARDS AND SYSTEMS PRIMARILY FOR INDUSTRIAL APPLICATIONS 9308170090 930817 GROUP PURCHASES PUDGIE'S CHAIN WOODBURY NY AN INVESTOR GROUP THAT INCLUDES THE PRESIDENT OF QUANTUM RESTAURANT GROUP INC BOUGHT THE PUDGIE'S FAMOUS CHICKEN RESTAURANT CHAIN AND PLANS A MAJOR EXPANSION THE GROUP MT ACQUISITION CORP BOUGHT THE CHAIN FROM ITS FOUNDER GEORGE SANDERS TERMS WEREN'T DISCLOSED THE MT BOARD INCLUDES UDI TOLEDANO PRESIDENT OF CR CAPITAL INC JOSEPH MIZRACHI PRESIDENT OF MIDATLANTIC TRADING INC AND ALLEN BERNSTEIN PRESIDENT AND CHIEF EXECUTIVE OF QUANTUM THE GROUP PLANS TO EXPAND FROM THE CURRENT 100 FRANCHISES TO MORE THAN 500 AND BECOME A NATIONAL COMPANY 9308170089 930817 LAW LEGAL BEAT RULES GOVERNING DIVORCE LAWYERS ARE OVERHAULED IN NEW YORK STATE BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STATE'S NEW CHIEF JUDGE OVERHAULED THE RULES GOVERNING DIVORCE LAWYERS IN A MOVE THAT PROMISES TO FORCE AN ALMOST IMMEDIATE SHIFT IN THE BALANCE OF POWER BETWEEN SUCH LAWYERS AND THEIR CLIENTS NO OTHER STATE HAS ADOPTED SUCH FARREACHING RULES ESPECIALLY WHERE FEES ARE CONCERNED NONREFUNDABLE RETAINER FEES ARE BANNED AND STRICT LIMITS ARE PLACED ON LAWYERS' ABILITY TO PLACE LIENS ON A CLIENT'S HOME OR TAKE CONTROL OF PERSONAL POSSESSIONS TO ENSURE PAYMENT IN ADDITION FEE DISPUTES MUST BE RESOLVED BY ARBITRATION AT THE CLIENT'S REQUEST THE NEW RULES ALSO PROHIBIT MATRIMONIAL LAWYERS FROM ENGAGING IN SEXUAL RELATIONS WITH THEIR CLIENTS LAWYERS WHO VIOLATE ANY OF THE RULES CAN BE CENSURED OR DISBARRED ENACTMENT OF THE RULES REQUIRES NO FURTHER APPROVAL BY ANY GROUP THEY TAKE EFFECT IN NOVEMBER THE RULES ARE EXPECTED TO BE CLOSELY STUDIED BY OTHER STATES IN PART BECAUSE NEW YORK IS A LEADER ON LEGAL ISSUES BUT ALSO BECAUSE CHIEF JUDGE JUDITH S KAYE BECAME SOMETHING OF A NATIONAL FIGURE WHEN SHE WAS CONSIDERED EARLIER THIS YEAR FOR THE US SUPREME COURT AND ATTORNEY GENERAL NOMINATIONS SOME OTHER STATES HAVE ALREADY TAKEN SMALLER STEPS TO POLICE LAWYERCLIENT RELATIONSHIPS JUDGE KAYE PUT LAWYERS WHO HAVE NEVER BEEN IN A DIVORCE COURT ON NOTICE AS WELL SHE ANNOUNCED THE FORMATION OF A COMMITTEE TO STUDY THE ATTORNEYCLIENT RELATIONSHIP IN NONMATRIMONIAL CASES THAT COMMITTEE MAY RECOMMEND SIMILAR RULES AFFECTING LAWYERS AND INDIVIDUALS AND SOME BUSINESSES JUDGE KAYE CALLED THE RULES CONCRETE STEPS TO COUNTERACT PUBLIC CRITICISM AND PUBLIC CYNICISM ABOUT THE LEGAL PROFESSION AND THE COURTS AND SAID THEY WERE PARTICULARLY NECESSARY IN DIVORCE CASES WHICH ARE A TIME OF TREMENDOUS EMOTIONAL DESPAIR FOR EVERYONE JUDGE KAYE PUSHED FOR THE RULES WHICH REQUIRED THE APPROVAL OF NEW YORK'S FOUR CHIEF APPELLATE DIVISION JUDGES IN THE WAKE OF TWO RECENT REPORTS ON ATTORNEY CONDUCT IN MATRIMONIAL CASES A STUDY BY NEW YORK CITY'S CONSUMER AFFAIRS COMMISSIONER SINGLED OUT DIVORCE LAWYERS' MISTREATMENT OF WOMEN A COMMISSION HEADED BY STATE JUDGE E LEO MILONAS FOUND SERIOUS AND PERVASIVE PUBLIC DISSATISFACTION WITH THE MATRIMONIAL BAR ACCORDING TO JUDGE KAYE WHO SAT ON THE COMMISSION UNTIL HER APPOINTMENT AS CHIEF JUDGE IN MARCH ALTHOUGH SHE SAID THERE IS NO WAY TO MEASURE THE EXTENT TO WHICH MATRIMONIAL LAWYERS TAKE ADVANTAGE OF THEIR CLIENTS SHE NOTED THAT SHE HAS RECEIVED LETTERS AND CALLS EVERY DAY SINCE SERVING ON THE PANEL STEPHEN GILLERS A PROFESSOR OF LEGAL ETHICS AT NEW YORK UNIVERSITY SCHOOL OF LAW WHO TESTIFIED BEFORE THE MILONAS COMMISSION SAID NEW YORK'S NEW RULES GIVE THE DIVORCE CLIENT GREATER PROTECTION AGAINST ATTORNEY OVERREACHING AND SIMPLE MISUNDERSTANDING THAN ANY OTHER STATE PROVIDES MATRIMONIAL CLIENTS OTHER STATES HAVE BITS AND PIECES OF NEW YORK'S NEW PROTECTIONS HE ADDED FOR EXAMPLE NEW JERSEY REQUIRES ARBITRATION IN FEE DISPUTES IN MATRIMONIAL CASES SOUTH CAROLINA AND ILLINOIS FORBID LAWYERS FROM HOLDING ONTO CLIENT FILES UNLESS CLIENTS HAVE COMMITTED FRAUD AGAINST THE LAWYER IN CONTRAST THE NEW NEW YORK RULES BAN ANY RETENTION OF SUCH FILES 30 DAYS AFTER THE REPRESENTATION ENDS CALIFORNIA BARS LAWYERS FROM DEMANDING A SEXUAL RELATIONSHIP WITH A CLIENT NEW YORK'S NEW RULES ALREADY ARE PROMPTING GRUMBLING IN THE MATRIMONIAL BAR EVEN THOUGH LAWYERS FROM SOME PROMINENT LAWYERS' GROUPS INCLUDING THE AMERICAN ACADEMY OF MATRIMONIAL LAWYERS PARTICIPATED IN CREATING THE RULES LYNNE GOLDBIKEN CHAIRWOMANELECT OF THE AMERICAN BAR ASSOCIATION'S FAMILY LAW SECTION ATTRIBUTES THE NEW RULES TO A TERRIBLE PHASE OF PROFESSION BASHING SHE SAYS NEW YORK'S RESTRICTIONS ON HOLDING CLIENT FILES AND TAKING CONTROL OF CLIENT PROPERTY GO TOO FAR SHE NOTES THAT MANY DIVORCE LAWYERS AGREE TO REPRESENT CLIENTS WHO DON'T HAVE MONEY WITH THE UNDERSTANDING THAT THEY WILL PAY LATER OFTEN SHE SAYS CLIENTS END UP RENEGING ON THAT COMMITMENT WE ARE PUTTING THE CLIENT IN SUCH A POWERFUL POSITION THAT DIVORCE LAWYERS ARE GOING TO STOP CARRYING PEOPLE WHO CAN'T PAY THEM AND THE DEPENDENT SPOUSE IS GOING TO BE DAMAGED BY THIS SAYS MS GOLDBIKEN WHO SAYS THAT 20 OF HER NORRISTOWN PA FIRM'S FEES GO UNPAID EACH YEAR JUDGE KAYE SAID A LAWYER'S RIGHT TO PUT A LIEN ON PROPERTY WAS LIMITED BUT NOT PROHIBITED ENTIRELY THAT SHE SAYS IS A RECOGNITION THAT CLIENTS OF MODEST MEANS MAY ONLY HAVE THE MATRIMONIAL HOME OTHERWISE A LOT OF PEOPLE MIGHT NOT BE ABLE TO FLATOUT GET A LAWYER JUDGE KAYE ALSO ANNOUNCED ADDITIONAL RULES TO SPEED UP THE PROCESSING OF DIVORCE CASES BY THE COURTS JUDGES FOR EXAMPLE MUST CONVENE CONFERENCES QUICKLY TO SET TIMETABLES FOR CASES AND PRETRIAL FACTFINDING IN DIVORCE CASES WILL HAVE TO BE COMPLETED IN SIX MONTHS INSTEAD OF A YEAR JUDGES WILL RECEIVE TRAINING IN THE NEW PROCEDURES THIS FALL THE MOVEMENT TO CERTIFY SPECIALISTS IN PARTICULAR AREAS OF LAW AND THUS PROVIDE CONSUMERS SOME GUIDANCE IN PICKING ATTORNEYS RECEIVED A BOOST FROM THE AMERICAN BAR ASSOCIATION THE ABA LAST WEEK AGREED FOR THE FIRST TIME TO APPROVE CERTIFICATION PROGRAMS FOR SPECIALTIES IN BUSINESS AND CONSUMER BANKRUPTCY CIVIL AND CRIMINAL TRIAL ADVOCACY AND CREDITORS' RIGHTS THE APPROVED PROGRAMS ARE RUN BY THE AMERICAN BANKRUPTCY BOARD OF CERTIFICATION THE NATIONAL BOARD OF TRIAL ADVOCACY AND THE COMMERCIAL LAW LEAGUE OF AMERICA THE BAR'S ACCREDITATION ADDS QUITE A BIT OF CREDIBILITY TO THE PROGRAM SAYS SCOTT WILLIAMSON EXECUTIVE DIRECTOR OF THE AMERICAN BANKRUPTCY BOARD THEY HAVE TOUGH STANDARDS THE ABA IN FEBRUARY DECIDED TO CREATE SUCH STANDARDS FOR ANY GROUP THAT SEEKS TO CERTIFY SPECIALISTS SAYS ADRIAN HOCHSTADT STAFF COUNSEL FOR THE BAR'S STANDING COMMITTEE ON SPECIALIZATION BANK'S APPEAL AN ARIZONA JUDGE'S DISMISSAL LAST DECEMBER OF A 338 MILLION NEGLIGENCE VERDICT AGAINST PRICE WATERHOUSE WAS APPEALED LAST WEEK BY STANDARD CHARTERED PLC A BRITISH BANK THE BANK HAS ALLEGED THAT THE ACCOUNTING FIRM WAS NEGLIGENT IN ITS AUDITS OF AN ARIZONA BANK PURCHASED BY STANDARD CHARTERED IN 1987 WHICH THE BRITISH BANK SOLD FOR A LOSS A YEAR LATER PRICE WATERHOUSE HAS DENIED THE ALLEGATIONS KATIA HETTER CONTRIBUTED TO THIS ARTICLE 9308170088 930817 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/2 HIGH 3 1/8 LOW 3 NEAR CLOSING BID 3 1/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 59 DAYS 312 60 TO 89 DAYS 313 90 TO 119 DAYS 314 120 TO 157 DAYS 326 158 TO 179 DAYS 328 180 TO 245 DAYS 332 246 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 289 SIX MONTHS 304 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 309 THREE MONTHS 325 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 306 60 DAYS 306 90 DAYS 307 120 DAYS 316 150 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 685 60 DAYS 693 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 9308170087 930817 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS AUGUST 1730 THE EXHIBITION SCHEDULED TO COINCIDE WITH THE POPE'S DENVER VISIT FEATURES WORK BY WORLD RENOWNED ARTISTS SUCH AS MICHELANGELO RUBENS AND BERNINI AS WELL AS ORDINARY CRAFTSMEN INCLUDED IN THE EXHIBITION ARE THE ONLY VATICANAUTHORIZED COPIES OF THE PIETA BY MICHELANGELO MANDYLION OF EDESSA THE OLDEST IMAGE OF CHRIST KNOWN TO SCHOLARS AND RUBEN'S THE LAST SUPPER THE 250 MOSAICS TAPESTRIES PAINTINGS AND SCULPTURES ARE DRAWN FROM THE VATICAN AND 40 ITALIAN MUSEUMS THE SHOW WILL MAKE A SEVENYEAR WORLD TOUR ENDING IN ROME FOR THE CATHOLIC CHURCH'S ANNIVERSARY CELEBRATION IN THE YEAR 2000 COLORADO HISTORY MUSEUM CIVIC CENTER AT 13TH AVE AND BROADWAY THROUGH AUG 31 303 8663682 BETWEEN THE TWO WORLD WARS WOMEN PHOTOGRAPHERS TOOK TO THE STREETS TO DOCUMENT THE HISTORY OF THEIR TIME THE ERA IS DOCUMENTED IN THIS EXHIBITION BY 50 IMAGES THE NEW LOOK FOR URBAN WOMEN WARRAVAGED LANDSCAPES AND GRIM INDUSTRIAL COMPLEXES BUILT TO SUPPORT WAR AND ALSO ABSTRACT PHOTOGRAPHS WHICH EXPERIMENT WITH CUBISM AND THE SEVERE BAUHAUS STYLE AMONG THE PHOTOGRAPHERS FLORENCE HENRI LUCIA MOHOLY GERMAINE KRULL ILSE BING ERNA LENDVAIDIRCKSEN ELSE THALEMANN AND TRUDE FLEISCHMANN WHAT DO ARTISTS SEE WHEN THEY LOOK AT THEMSELVES TWENTYFIVE RESPOND IN THIS SHOW WHICH EXPLORES A RANGE OF EMOTIONAL THEMES AS WELL AS VARIATIONS IN COMPOSITION AND STYLE IN CONTEMPORARY SELFPORTRAITURE NATIONAL PORTRAIT GALLERY EIGHTH AND F STREETS NW THROUGH DEC 5 202 3571300 FIVE WEEKS OF MUSIC DANCE POETRY FILMS LECTURES AND ART EXHIBITIONS FEATURE 600 ARTISTS IN 40 SITES ACROSS GREATER LOS ANGELES THE FESTIVAL CELEBRATES THE CITY'S AFRICAN AFROAMERICAN AND MIDDLE EASTERN CULTURAL HERITAGES SEVERAL SPECIAL SERIES WILL HIGHLIGHT THE THEME HOME PLACE AND MEMORY FOR THE MEMORY PROJECTS ARTISTS WERE COMMISSIONED TO WORK IN RESIDENCE IN COMMUNITY ORGANIZATIONS TO CREATE WORKS REFLECTING THE COLLECTIVE MEMORIES OF LOCAL NEIGHBORHOODS FOR CROSSING LA LOS ANGELESBASED ARTISTS HAVE DESIGNED 18 EVENTS TO REFLECT THE FESTIVAL THEME LOCAL ARTISTS EXPRESS THEIR CULTURAL BACKGROUNDS THROUGH TRADITIONAL MUSIC AND DANCE AS WELL AS FILM OR VIDEO PROJECTS FILMS FROM MORE THAN 20 COUNTRIES WILL BE SHOWN VARIOUS LOCATIONS CITYWIDE AUG 20SEPT 19 800 6LA FEST THREE SHAKESPEARE CLASSICS COME TO THE STAGE FOR THE COMPANY'S 17TH SEASON THE TAMING OF THE SHREW OPENS AUG 14 THE MERCHANT OF VENICE OPENS AUG 21 AND KING LEAR OPENS SEPT 18 BROADWAY ACTOR EARLE HYMAN WHO ALSO PLAYED RUSSELL HUXTABLE BILL COSBY'S TV FATHER IN THE COSBY SHOW WILL RETURN TO HIS NATIVE NORTH CAROLINA TO PLAY LEAR A GROUP OF INTERNATIONALLY RECOGNIZED MUSICIANS WILL GATHER AT MANHATTAN'S OLDEST HOUSE TO CELEBRATE THE LIFE AND WORK OF JAZZMAN ANDY KIRK PERFORMERS INCLUDE RICHARD WYANDS PIANIST FOR ELLA FITZGERALD TROMBONIST BENNY POWELL A FEATURED SOLOIST WITH THE COUNT BASIE ORCHESTRA PERCUSSIONIST RUDY LAWLESS A JAZZ PERCUSSIONIST BASSIST MICHAEL FLEMING AND FILM COMPOSER RUDEL DREARS BANDLEADER AND SAXOPHONIST ANDY KIRK TOURED WITH THE POPULAR TWELVE CLOUDS OF JOY HE LIVED ACROSS THE STREET FROM THE MANSION FOR 53 YEARS UNTIL HIS RECENT DEATH AT AGE 94 MORRISJUMEL MANSION JUMEL TERRACE AT 160TH STREET AUGUST 21 9308170086 930817 INTERNATIONAL VIETNAM MARKET REFORMS ENTER DANGEROUS TIME' BY BARRY WAIN STAFF REPORTER OF THE WALL STREET JOURNAL HO CHI MINH CITY VIETNAM IN THE COMPOUND OF THE PRIME MINISTER'S SOUTHERN OFFICE DOWN THE STREET FROM THE FORMER US EMBASSY WORKMEN ARE BUILDING A MERCEDESBENZ SHOWROOM VIETNAM MAY STILL BE SOCIALIST AND ITS COMMUNIST PARTY MAY HOLD POLITICAL POWER BUT LIKE ITS NEIGHBOR CHINA IT CONTINUES TO MODERNIZE RAPIDLY AND EMBRACE THE TRAPPINGS OF CAPITALISM BEGUN IN 1986 THE TRANSITION FROM CENTRAL PLANNING TO A MARKET ECONOMY IS MOST VISIBLE IN URBAN AREAS HO CHI MINH CITY WHICH AMERICANS KNEW AS SAIGON WITH ITS BILLBOARDS AND BUSINESSMEN ARMED WITH CELLULAR PHONES EXUDES THE MOST DYNAMISM AND PROSPERITY BUT AWAY FROM THE BRIGHT LIGHTS IT'S A DIFFERENT STORY FARMERS THE BACKBONE OF THE NATION ARE SUFFERING FROM LOW PRICES THE GOVERNMENT HESITATES TO CLOSE LOSSMAKING STATE ENTERPRISES AND SOFTPEDALS ITS PRIVATIZATION PLANS UNEMPLOYMENT DILAPIDATED INFRASTRUCTURE AND CORRUPTION ARE PERENNIAL PROBLEMS ECONOMIC REFORM IS IN A DANGEROUS TIME SAYS A GOVERNMENT ECONOMIC ADVISER IT'S HALF DAY HALF NIGHT NO ONE SUGGESTS THAT VIETNAM WILL ABANDON ITS COMMITMENT TO DOI MOI AS THE RENOVATION PROGRAM IS KNOWN INDEED HANOI HAS BEEN PRAISED BY THE INTERNATIONAL MONETARY FUND FOR MAKING TOUGH DECISIONS AND PERSISTING WITH THEM DESPITE THE US EMBARGO THAT HAS LIMITED INTERNATIONAL AID THE ECONOMY IS EXPANDING AT AN IMPRESSIVE CLIP THE CURRENCY IS STRENGTHENING AND INFLATION APPEARS TO HAVE BEEN TAMED RELYING HEAVILY ON EXPORTS OF OIL AND RICE THE COUNTRY HAS NEARLY BALANCED ITS TRADE AND ACCUMULATED HEALTHY FISCAL RESERVES BUT FURTHER STEPS MUST BE TAKEN TO KEEP THE PROTRACTED REFORM PROCESS MOVING THE ECONOMY IS STILL A DUAL SYSTEM THE IMF SAYS IN A CONFIDENTIAL REPORT WITH A BUREAUCRATIC AND REGULATED STATE SECTOR OPERATING IN PARALLEL WITH A LARGELY UNCONTROLLED PRIVATE SECTOR VIETNAMESE TECHNOCRATS COUNT ON OVERSEAS FINANCING TO COMPLEMENT THEIR RESTRUCTURING OF THE ECONOMY THEY ARE HEARTENED BY THE RESUMPTION OF JAPANESE AID LATE LAST YEAR AND WASHINGTON'S DECISION LAST MONTH TO STOP BLOCKING MULTILATERAL DEVELOPMENT FUNDS WHICH SHOULD ALLOW AS MUCH AS 1 BILLION OF IMF WORLD BANK AND ASIAN DEVELOPMENT BANK MONEY TO POUR IN NEXT YEAR I THINK IT'S A TURNING POINT SAYS THE GOVERNMENT ADVISER IN THE MEANTIME THE ECONOMY BUILDS IMPRESSIVELY ON EARLIER GAINS GROSS DOMESTIC PRODUCT THE SUM VALUE OF GOODS AND SERVICES PRODUCED IN THE COUNTRY GREW BY 83 LAST YEAR UP FROM AN ADJUSTED 47 IN 1991 INFLATION AT 175 DOWN FROM 67 WAS THE LOWEST IN A DECADE OR MORE THE DONG VIETNAM'S CURRENCY STRENGTHENED ABOUT 37 AGAINST THE DOLLAR AFTER A COLLAPSE THE PREVIOUS YEAR AND FOREIGN INVESTORS COMMITTED THEMSELVES TO PROJECTS VALUED AT 2 BILLION ALMOST TWICE AS MUCH AS A YEAR BEFORE PERHAPS THE MOST MARKED IMPROVEMENT WAS IN TRADE WHICH SHOWED A SURPLUS FOR THE FIRST TIME SINCE VIETNAM WAS FORMALLY REUNITED IN 1976 ACCORDING TO OFFICIAL FIGURES EXPORTS LAST YEAR TOTALED 25 BILLION WHILE IMPORTS CAME TO 245 BILLION ALTHOUGH EXTENSIVE SMUGGLING MEANS THAT TRADE VOLUMES PARTICULARLY IMPORTS ARE SERIOUSLY UNDERRECORDED AND THE GOVERNMENT ACKNOWLEDGES IT PADDED EXPORTS WITH COMMODITY DEBT PAYMENTS TO THE FORMER SOVIET UNION THE RESULT WAS WIDELY HAILED THE 25 SURGE IN EXPORTS CONFIRMED THE DOMINATION OF UNPROCESSED FARM PRODUCTS AND CRUDE OIL WHICH TOGETHER ACCOUNTED FOR THREEQUARTERS OF OVERSEAS SALES VIETNAM PRODUCED 378 MILLION BARRELS OF OIL LAST YEAR UP FROM 273 MILLION IN 1991 THE COUNTRY HAS LITTLE REFINING CAPACITY SO IT EXPORTS MOST OF THE CRUDE AND IMPORTS PETROLEUM PRODUCTS GRAIN PRODUCTION REACHED ALMOST 24 MILLION METRIC TONS UP FROM 217 MILLION TONS WITH EXPORTS OF RICE RISING TO 19 MILLION TONS FROM 12 MILLION TONS VIETNAM REMAINS THE WORLD'S THIRDLARGEST RICE EXPORTER AFTER THAILAND AND THE US VIETNAM ACHIEVED REMARKABLE PROGRESS IN 1992 SAYS THE ASIAN DEVELOPMENT BANK THE TREND HAS CONTINUED THIS YEAR WITH THE DONG FIRMING SLIGHTLY TO 10400 TO THE DOLLAR AND FOREIGN INVESTMENT ACCELERATING BY MOST CALCULATIONS THE 75 GROWTH TARGET IS WELL WITHIN REACH AND YET THERE ARE WORRIES EVEN THOUGH INFLATION WAS HELD TO AN ANNUAL RATE OF 11 IN THE FIRST HALF PLANNERS FRET THAT CONSUMER PRICES MIGHT TAKE OFF AGAIN AS THEY DID IN 1991 THE BUDGET DEFICIT IS EXPECTED TO WIDEN CONSIDERABLY THIS YEAR AS GOVERNMENT SPENDING SOARS 62 ALTHOUGH REVENUE IS ALSO CLIMBING STEEPLY IT WON'T KEEP PACE WITH EXPENDITURES UNWILLING TO WAIT FOR INTERNATIONAL FUNDING HANOI IS UPGRADING ROADS PORTS AIRPORTS AND ELECTRICTRANSMISSION LINES ANOTHER MAJOR ITEM ON THE AGENDA IS WAGE REFORMS FOR CIVIL SERVANTS AND STATEENTERPRISE EMPLOYEES THEY ARE BEING GIVEN ADDITIONAL CASH AS THE GOVERNMENT PHASES OUT SUBSIDIES MAINLY FOR HOUSING AND HEALTH CARE AND INTRODUCES VARYING PAY SCALES TO REFLECT SKILLS EXPERIENCE AND RESPONSIBILITY INCREASED SALARIES WILL TRANSLATE IMMEDIATELY INTO DEMAND SAYS LE DANG DOANH VICE PRESIDENT OF THE CENTRAL INSTITUTE FOR ECONOMIC MANAGEMENT THAT COULD HELP FARMERS WHO ACCOUNT FOR ALMOST 80 OF VIETNAM'S 718 MILLION PEOPLE THEY ARE BEING SQUEEZED BY THE RISING COST OF GOODS AND SERVICES EVEN AS THE PRICE OF THEIR RICE TUMBLES BY OFFICIAL CALCULATIONS RURAL INCOMES FELL AS MUCH AS 50 LAST YEAR ANOTHER BUMPER CROP IS EXPECTED THIS YEAR WITH THE FERTILE RED RIVER DELTA IN THE NORTH AND THE MEKONG DELTA IN THE SOUTH AWASH WITH GRAIN STATE DISTRIBUTION AGENCIES HAVE STEPPED UP PURCHASES BUT PREVAILING PRICES DON'T COVER PRODUCTION COSTS CASHSTRAPPED FARMERS ARE FORCED TO BARTER THEIR PRODUCE FOR HOUSEHOLD ITEMS AND CLOTHES THE GROWING GAP BETWEEN CITY AND COUNTRYSIDE IS A CAUSE OF TENSION IT'S DANGEROUS SAYS VETERAN REVOLUTIONARY TRAN BACH DANG WHO'S AN ADVISER TO THE PRIME MINISTER IT WILL BECOME A POLITICAL PROBLEM IF IT'S NOT TACKLED IN A BID TO ALLEVIATE THE PLIGHT OF THE PEASANTS THE NATIONAL ASSEMBLY HAS REDUCED THE TAX ON AGRICULTURAL LAND TO 5 FROM 10 OF THE CROP VIETNAM ALSO HAS SIGNED A PRODUCTION AND MARKETING AGREEMENT WITH THAILAND THE TOP RICE EXPORTER IN AN EFFORT TO BOOST INTERNATIONAL PRICES IT'S DOUBTFUL THAT THOSE MEASURES ALONE WILL BE SUFFICIENT TO RESCUE FARMERS WHO ARE LARGELY VICTIMS OF THEIR OWN SUCCESS SOME OFFICIALS ARGUE THAT THE ONLY COMPLETE ANSWER IS A SOPHISTICATED PRICESUPPORT SYSTEM FOR AGRICULTURAL PRODUCTS IT DOESN'T READILY ACKNOWLEDGE IT BUT THE GOVERNMENT IS FINDING IT HARD TO LET GO OF THE STATE SECTOR AND FORCE IT TO COMPETE WITH PRIVATE ENTERPRISE THE IMF AND OTHERS HAVE MADE IT CLEAR THAT FURTHER ADVANCEMENT DEPENDS ON HANOI'S WILLINGNESS TO HAMMER AWAY AT ECONOMIC REFORM MUCH REMAINS TO BE DONE TO ESTABLISH A LEGAL FRAMEWORK FOR A MARKET ECONOMY AND LIMIT STATE ENTERPRISES THE GOVERNMENT HAS BEEN SLOW TO END FAVORABLE TREATMENT FOR STATEOWNED COMPANIES AND CLOSE THOSE THAT LOSE MONEY DESPITE YEARS OF DISCUSSION THERE'S STILL NO BANKRUPTCY LAW A PRIVATIZATION PROGRAM UNVEILED LAST YEAR HAS STALLED ONLY ONE OF THE SEVEN STATE ENTERPRISES NOMINATED A YEAR AGO HAS FORMED A SHAREHOLDING COMPANY AND SOLD A SLICE TO THE PUBLIC THOUGH ANOTHER IS ABOUT TO FOLLOW AND 10 OTHERS ARE SEEKING APPROVAL TO SELL SHARES WHILE IDEOLOGY IS A POTENT FACTOR REFORMIST OFFICIALS SEE A MORE SINISTER REASON FOR RESISTANCE THEY PINPOINT A TRIANGULAR OPERATION IN WHICH STATE BANKS PROTECTED BY PUBLIC OFFICERS PROVIDE CREDIT TO STATE ENTERPRISES THAT ARE ENGAGED IN SMUGGLING AND TAX EVASION THEY HAVE ORGANIZED A SHADOW ECONOMY SAYS ONE INSIDER EACH IS SHARING A HUGE INCOME UNTIL THE GOVERNMENT DISMANTLES THE STATE SECTOR ECONOMISTS SAY THE COUNTRY IS UNLIKELY TO REALIZE ITS FULL POTENTIAL NEVERTHELESS THE IMMINENT INJECTION OF INVESTMENT CAPITAL AND THE POSSIBILITY THAT THE US EMBARGO SOON WILL BE EASED HAVE CHEERED PRIVATE ENTREPRENEURS 9308170085 930817 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY AUGUST 4 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9308170084 930817 NOTABLE & QUOTABLE IN AN INTERVIEW IN THE AUG 16 BUSINESS WEEK SEN BILL BRADLEY D NJ REFLECTS ON THE SOAKTHERICH PHILOSOPHY BEHIND PRESIDENT CLINTON'S TAX PLAN BECAUSE YOU'VE DONE WELL AND EARNED MONEY DOESN'T MEAN THAT YOU ARE GUILTY OF SOMETHING IT MEANS YOU WORKED HARD AND BEAT THE COMPETITION AND WERE REWARDED FOR IT TO SAY THAT YOU GOT UNJUST GAINS IN THE 1980S AND NOW WE'RE TAKING THEM BACK IS REALLY SHORTSIGHTED 9308170082 930817 MONDAY'S MARKETS STOCKS GAIN BONDS RALLY DOLLAR FALLS TELECOMMUNICATIONS ISSUES LEAD TO RECORD NASDAQ COMPOSITE BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE LOST STEAM IN LATE TRADING POSTING ONLY MODERATE GAINS THAT FELL SHY OF A RECORD BUT THE NASDAQ COMPOSITE INDEX BARRELED TO A NEW HIGH ON SURGING TELECOMMUNICATIONS STOCKS LONGTERM BOND PRICES RALLIED SHARPLY THE DOLLAR FELL THE INDUSTRIAL AVERAGE GAINED 950 POINTS TO 357915 SHORT OF THE 358335 RECORD IT TRADED AS HIGH AS 359173 EARLY IN THE DAY STANDARD & POOR'S 500STOCK INDEX ROSE 224 TO 45238 THE STANDOUT PERFORMANCE WAS TURNED IN BY THE NASDAQ COMPOSITE WHICH ROCKETED 863 POINTS TO 72689 SURPASSING ITS PRIOR RECORD OF 71877 ANALYSTS SAID THE ANNOUNCEMENT THAT AMERICAN TELEPHONE & TELEGRAPH WILL BUY MCCAW CELLULAR COMMUNICATIONS SPURRED BROAD BUYING OF STOCKS ESPECIALLY IN THE OVERTHECOUNTER MARKET OVERTHECOUNTERTRADED COMMUNICATIONS TECHNOLOGY AND CELLULARTELEPHONE STOCKS SPURTED HIGHER PROPELLING THE NASDAQ COMPOSITE TO A CONVINCING NEW RECORD THE INDUSTRIAL AVERAGE HOWEVER WAFFLED AT RECORD LEVELS PUSHING TO A NEW HIGH SEVERAL TIMES ONLY TO SLIP BACK EACH TIME NED COLLINS HEAD OF TRADING AT DAIWA SECURITIES AMERICA SAID MANY INVESTORS ARE NURSING A VARIETY OF WORRIES AMONG THEM THE WEAK ECONOMY THE HIGH LEVEL OF STOCK PRICES THE COMING DEBATE OVER PRESIDENT CLINTON'S HEALTHCARE PROGRAM AND THE REAL IMPACT OF THE DEFICITREDUCTION PROGRAM APPROVED BY CONGRESS IT'S A VERY EXCITING MARKET IN THAT WE KEEP TOUCHING THESE NEW HIGHS MR COLLINS SAID BUT THERE'S A LOT OF NERVOUSNESS OUT THERE PEOPLE AREN'T SURE IN WHICH DIRECTION THEY SHOULD BE GOING NONETHELESS STOCK PRICES CONTINUED TO DERIVE STRENGTH FROM FALLING LONGTERM INTEREST RATES WHICH DROP TO NEW 16YEAR LOWS ALMOST DAILY YESTERDAY THE YIELD ON THE LONGBOND SLIPPED TO 630 FROM 635 FRIDAY ANALYSTS SAID BOND PRICES CLIMBED YESTERDAY ON CONTINUING OPTIMISM ABOUT INFLATION AFTER LAST WEEK'S UPBEAT REPORTS ON PRODUCER AND CONSUMER PRICES BUT BONDMARKET TRADING WAS LACKLUSTER PARTLY BECAUSE OF A TRADITIONAL SUMMER SLOWDOWN AND BECAUSE THERE WAS LITTLE MARKETMOVING NEWS A FEDERAL RESERVE REPORT SHOWING THAT INDUSTRIAL PRODUCTION ROSE AN EXPECTED 04 IN JULY HAD SCANT IMPACT ON PRICES TRADERS ARE WATCHING TODAY'S MEETING OF THE FEDERAL OPEN MARKET COMMITTEE THE FED'S POLICYMAKING ARM FOR ANY REACTION TO THE WEAK ECONOMY AND FAVORABLE INFLATION OUTLOOK BUT ANALYSTS SAID IT ISN'T LIKELY THE FED WILL TAKE ANY OVERT ACTION ON INTEREST RATES SOON WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 090 TO 11201 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2292 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1161 ISSUES ROSE AND 793 FELL BOND PRICES CLIMBED THE TREASURY'S BENCHMARK 30YEAR ISSUE SOARED ALMOST FIVEEIGHTHS OF A POINT OR ALMOST 625 FOR EACH 1000 FACE AMOUNT THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16870 MARKS AND 10155 YEN COMPARED WITH 17115 MARKS AND 10180 YEN FRIDAY 9308170081 930817 MARKETSCAN OUTLOOK IS MURKY FOR CLEAR FRUITY DRINKS BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL CLEAR FRUITY BEVERAGES THE REDHOT TRENDSETTERS OF 1992 ARE SUDDENLY ICE COLD THREE YEARS AGO CLEARLY CANADIAN THE SWEETENED SPARKLING WATER THAT UNLEASHED THE NEW AGE BEVERAGE CRAZE TOOK THE SOFTDRINK WORLD BY STORM THE FRUITFLAVORED WATER WITH UPSCALE APPEAL AND A GOODFORYOU PITCH PROMPTED TRENDWATCHERS TO HAIL THE DAWNING OF A NEW CATEGORY IT ALSO INSPIRED MARKETING GIANTS COCACOLA CO SEAGRAM CO AND NESTLE SA'S PERRIER GROUP TO DEVELOP THEIR OWN VERSIONS OF CLEARLY CANADIAN BUT NOW THE MARKET'S PROSPECTS LOOK A LOT MURKIER 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 RESOURCES INC'S INFOSCAN SERVICE CLEARLY CANADIAN BEVERAGE CORP'S SHARES WHICH PEAKED AT 25875 IN MARCH 1992 CLOSED AT 550 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY ALREADY PEOPLE WHO FOLLOW THE INDUSTRY SAY COCACOLA'S NORDIC MIST AND PERRIER'S ICE MOUNTAIN ARE FLAGGING AS WELL SOME OBSERVERS BLAME CONSUMERS' CAPRICIOUS TASTES AND COMPETITION FROM SUCH PRODUCTS AS READYTODRINK ICED TEAS WHAT WAS LOOKING LIKE A TREND IS STARTING TO LOOK LIKE A FAD SAYS JENNIFER SOLOMON AN ANALYST WITH MABON SECURITIES CORP IT MAY SIMPLY BE THAT THESE SPECIALTY DRINKS ARE NO LONGER SPECIAL ENOUGH TO COMMAND PREMIUM PRICES NEW AGE IS AN ANACHRONISTIC TERM SAYS TOM PIRKO OF BEVMARK INC A CONSULTING FIRM INDUSTRY EXECUTIVES AND ANALYSTS SAY COCACOLA AND PERRIER ARE DISAPPOINTED WITH THEIR ENTRIES BUT PERRIER FOR THE RECORD SAYS ITS ICE MOUNTAIN IS MEETING EXPECTATIONS AS WITH THE WHOLE CATEGORY OF FLAVORED SPARKLING WATERS SALES OF NORDIC MIST HAVE BEEN SORT OF SOFT IN SOME CHANNELS OF THE MARKETPLACE PARTICULARLY SUPERMARKETS CONCEDES A COCACOLA SPOKESMAN BUT HE SAYS THE PRODUCT HAS DONE BETTER IN OTHER OUTLETS AND IS MEETING THE COMPANY'S EXPECTATIONS OVERALL ACCORDING TO MICHAEL BELLAS PRESIDENT OF NEW YORK CONSULTING FIRM BEVERAGE MARKETING CORP THE CLEAR SEGMENT OF THE NEW AGE BEVERAGE CATEGORY IS GROWING IN THE HIGH SINGLE DIGITS THIS YEAR COMPARED WITH 437 FOR ALL OF 1992 MARKETERS HAVE LEARNED ONE VALUABLE LESSON IN A MARKET LONG DOMINATED BY COLAS CONSUMERS FICKLE ENOUGH TO DEFECT TO A NEW PRODUCT CAN BE FICKLE ENOUGH TO MOVE ON TO SOMETHING ELSE WHILE CLEARLY CANADIAN HAS LOST SOME BUSINESS TO SIMILAR PRODUCTS ITS MAIN COMPETITION HAS COME FROM OTHER ALTERNATIVE BEVERAGE CATEGORIES PARTICULARLY BOTTLED ICED TEAS CORE CONSUMERS OF CLEARLY CANADIAN TEND TO BE MORE FICKLE THAN GOOD OLD PEPSI OR COKE DRINKERS SAYS DOUGLAS MASON CHAIRMAN CHIEF EXECUTIVE AND COFOUNDER OF VANCOUVER BRITISH COLUMBIABASED CLEARLY CANADIAN BEVERAGE TEAS ARE TAKING A LOT OF TRIAL USERS ONCE ITS NOVELTY WORE OFF SOME SUGGEST THAT CLEARLY CANADIAN WASN'T UNIQUE ENOUGH TO HANG ONTO ITS CONSUMER BASE DRINKERS FOUND THAT DESPITE THEIR HEALTHFUL AURA THESE PRODUCTS WEREN'T MUCH LOWER IN CALORIES THAN REGULAR SODAS DEPENDING ON THE FLAVOR CLEARLY CANADIAN HAS 90 TO 110 CALORIES IN AN 11OUNCE SERVING WHILE SPRITE FOR EXAMPLE HAS 142 CALORIES IN A 12OUNCE SERVING THOUGH SALES AREN'T AVAILABLE SEAGRAM'S 2 CALORIE QUEST IS SAID TO HAVE GOTTEN SOME BOUNCE FROM ITS LOWERCALORIE NUTRASWEETBASED FORMULA PEOPLE FINALLY REALIZED THAT CLEAR PRODUCTS FOR THE MOST PART ARE BASICALLY DESIGNER SODAS SAYS WILFORD ADKINS EXECUTIVE VICE PRESIDENT OF NEW DAY BEVERAGE INC THE INGREDIENTS ARE BASICALLY THE SAME WHILE MOST OF NEW DAY'S SALES COME FROM SUNSPRINGS A CLEAR SWEETENED BEVERAGE THE COMPANY IS BETTING THAT ITS NEW MORE WHOLESOME BLEND OF DECIDEDLY OPAQUE SPARKLING WATERFRUIT JUICE BLENDS EVENTUALLY WILL OVERTAKE IT SOME ANALYSTS AND CONSULTANTS SEE CLEARLY CANADIAN'S WOES AS ENTREPRENEURSHIP GONE SOUR A GROUP OF VISIONARY BUT INEXPERIENCED MANAGERS WHO LET A FASTGROWING COMPANY SPIN OUT OF THEIR CONTROL THERE IS LITTLE DOUBT THAT CLEARLY CANADIAN'S PROBLEMS WERE AGGRAVATED BY COMPLACENCY WHILE FARLARGER RIVALS LAUNCHED SIMILAR AND OFTEN CHEAPER PRODUCTS LAST YEAR AS COCACOLA SEAGRAM AND PERRIER BROUGHT OUT COMPETITIVE BRANDS CLEARLY CANADIAN RESISTED GOING NATIONAL WITH ITS ADS AND FAILED TO ADD A SINGLE PRODUCT OR FLAVOR TO ITS LINEUP CLEARLY SAT ON ITS HANDS SAYS MR PIRKO MR MASON SAYS THAT INITIALLY HIS COMPANY WAS SO OVERWHELMED BY CONSUMER DEMAND THAT IT DIDN'T RECOGNIZE THE NEED FOR AN AGGRESSIVE OFFENSE WE WERE FLYING WE WERE IN HANDSOME SHAPE HE SAYS WHILE CONCEDING THAT THE COMPANY HAS BEEN SLOW TO COME TO MARKET WITH NEW PRODUCTS OR LINE EXTENSIONS HE SAYS THE NEW ENTRANTS' IMPACT ON SALES IN LATE 1992 AND 1993 TOOK CLEARLY CANADIAN BY SURPRISE PERHAPS WE WERE A LITTLE BIT NAIVE HE SAYS CLEARLY CANADIAN IS SCRAMBLING TO GET BACK ON TRACK MR MASON SAYS THE COMPANY WILL TEST TELEVISION ADS IN SIX CITIES THIS YEAR AND PROMISES AT LEAST FIVE NEW PRODUCTS BY THE FIRST QUARTER OF 1994 HE HINTS THAT THE NEW LINEUP MAY INCLUDE A BOTTLED NONCARBONATED WATER A DIET DRINK AND SOMETHING FOR THE FASTGROWING READYTODRINK ICED TEA MARKET THE COMPANY IS ALSO RESEARCHING NUTRICEUTICALS OR BEVERAGES FORTIFIED WITH VITAMINS OR MINERALS MR MASON PREDICTS THAT IN FIVE YEARS ITS CLEARLY CANADIAN FLAGSHIP PRODUCT THAT NOW ACCOUNTS FOR 100 OF SALES WILL BE GENERATING ONLY HALF WHILE CONCEDING THAT SOME IN THE INDUSTRY THINK CLEARLY CANADIAN IS DYING ON THE VINE MR MASON INSISTS THE COMPANY WILL REBOUND THE SAME GURUS WHO STARTED THE WHOLE CLEARPRODUCT INDUSTRY AND MADE IT A REAL CATEGORY ARE STILL HERE WE HAVEN'T GOTTEN STUPID 9308170080 930817 ASHLAND COAL UNIT OF ASHLAND OIL HOLD MERGER DISCUSSIONS HUNTINGTON WVA ASHLAND COAL INC AND ARCH MINERAL CORP SAID THEY ARE CONSIDERING MERGING A MOVE THAT WOULD FORM THE NATION'S FIFTHLARGEST COAL PRODUCER ASHLAND COAL IN HUNTINGTON AND ARCH MINERAL A ST LOUISBASED UNIT OF ASHLAND OIL INC OF ASHLAND KY ANNOUNCED LATE YESTERDAY THAT THEY ARE IN THE INVESTIGATIVE STAGES OF MERGING NEITHER SIDE WOULD SAY WHICH WOULD BE THE BUYER ASHLAND OIL OWNS 41 OF ASHLAND COAL AND 50 OF ARCH MINERAL IF THE PROPOSAL GOES THROUGH THE TWO COMPANIES' COMBINED PRODUCTION WOULD BE ABOUT 35 MILLION TONS ANNUALLY WITH ABOUT 24 BILLION TONS OF LOWSULFUR COAL ON RESERVE ANALYSTS SAY THE MERGER MIGHT INDICATE THAT THE HUNT FAMILY OF DALLAS WHICH OWNS HALF OF ARCH MINERAL IS LOOKING TO LEAVE THE COAL BUSINESS BASICALLY IT WILL MAKE TWO BIG COMPANIES BIGGER SAYS RALPH BARBARO WITH ENERGY VENTURES INC A MAKER OF OIL AND GAS EQUIPMENT THEY'LL IN ESSENCE BE ABLE TO DO THE SAME THING WITH FEWER PEOPLE WHILE THE COMPANIES WERE SKETCHY ON DETAILS OF THE DISCUSSIONS A SPOKESMAN FOR ONE INDICATED THAT A DECISION WOULD BE MADE WITHIN A YEAR BOTH ASHLAND COAL AND ARCH MINERAL HAVE BEEN TARGETED BY THE UNITED MINE WORKERS STRIKE EARLIER THIS YEAR CYPRUS MINERALS CO THE 14THLARGEST PRODUCER IN THE US AGREED TO ACQUIRE AMAX INC THE COUNTRY'S THIRDLARGEST PRODUCER ASHLAND COAL IS THE 19THLARGEST PRODUCER AND ARCH MINERAL IS NO 13 9308170079 930817 LEISURE & ARTS ON SPORTS MAIDEN MAJOR VICTORY FOR VETERAN AZINGER BY FREDERICK C KLEIN TOLEDO OHIO WITH THE GOLF WORLD ALL AFLUTTER ABOUT THE COMING RYDER CUP MATCHES THE THREEDAY USA VS EUROPE MATCH PLAY FEST SCHEDULED FOR ENGLAND NEXT MONTH A COUPLE OF THE BOYS STAGED A BIT OF A PREVIEW HERE LATE SUNDAY AFTERNOON THE CONTESTANTS WERE PAUL AZINGER AND GREG NORMAN WHO QUALIFIED BY TYING FOR THE LEAD OF THE PGA CHAMPIONSHIP OVER THE REGULATION 72 HOLES THEY WENT AT IT IN SUDDEN DEATH WHICH IS NOTHING IF NOT MATCH PLAY AND AZINGER PREVAILED ON HOLE TWO WHEN A FOURFOOT NORMAN PUTT LIPPED THE CUP TO GIVE HIM A BOGEY TO AZINGER'S PAR ASKED LATER THE PERFUNCTORY QUESTION ABOUT HOW HE FELT THE TWOIRONLEAN 33YEAROLD WINNER WHO'D BEEN REGARDED AS THE BEST PLAYER NEVER TO HAVE WON A MAJOR TOURNAMENT SAID HE WAS GLAD IT WAS OVER HE ELUCIDATED THE WEATHER WAS HOT I WAS NERVOUS I WAS GASPING FOR AIR AT THE END I TOLD MY CADDY I WAS GOING ON A CARDIOVASCULAR PROGRAM AFTER THIS ASKED THE SAME QUESTION EARLIER NORMAN AN AUSTRALIAN WHO NO DOUBT CAN CLAIM BOTH ANGLO AND SAXON FOREBEARS AND NORMANS TOO OF COURSE ANSWERED WITH A FOURLETTER ANGLOSAXONISM I DIDN'T LOSE THIS ONE SOMEONE WON RECOVERED THE MAN WHO DESPITE A CONSIDERABLE LIST OF TRIUMPHS HAS MADE HIS MAIN REPUTATION AS A RUNNERUP THE IMPORTANT THING WAS THAT I GAVE MYSELF A CHANCE TO WIN THE PLAYOFF A NAILBITER IN WHICH BOTH PLAYERS HAD CHANCES TO WIN SPECTACULARLY BEFORE THE DOWNBEAT CONCLUSION WAS JUST ONE THING THAT SET APART THIS FEST THE LAST OF THIS YEAR'S FOUR GOLF MAJORS NOTABLE TOO WERE THE QUALITY OF THE LEADERBOARD ON THE TOURNEY'S FINAL DAY AND THE SCORES THE CONTESTANTS WERE POSTING OVER THE VENERABLE INVERNESS CLUB COURSE GOLF'S MAJORS HAVE OF LATE MOSTLY BEEN AFFAIRS IN WHICH THE GAME'S GODS ACCLAIM THE VALUE OF PATIENCE AND MURMUR THE PLATITUDE THAT PAR'S A GOOD SCORE THIS ONE STAGED ON FOUR NEARLY IDENTICAL HOT STICKY AND WINDLESS DAYS WAS REFRESHINGLY A BIRDIE FEST SCOTT SIMPSON AN AMIABLE JOURNEYMAN SHOT A SEVENUNDERPAR 64 TO LEAD THE PACK ON DAY ONE THURSDAY AND VIJAY SINGH A SMOOTHSWINGING FIJIAN OF INDIAN ANCESTRY ONEUPPED THAT WITH A COURSEANDTOURNEY RECORD TYING 63 ON FRIDAY THE COURSE DRIED OUT A BIT ON SATURDAY AND SUNDAY MEANING THAT ITS SMALLISH GREENS WERE LESS RECEPTIVE TO THE PROS' LOFTY IRON SHOTS AND SCORES ROSE SOMEWHAT BUT AZINGER AND NORMAN'S 72HOLE TOTALS OF 272 12 UNDER PAR WERE BUT A STROKE ABOVE THE TOURNAMENT RECORD OF 271 THAT BOBBY NICHOLS POSTED AT COLUMBUS OHIO COUNTRY CLUB IN 1964 SEVEN YEARS AFTER THE CHAMPIONSHIP JETTISONED ITS MATCH PLAY FORMAT SOME OF THE GUYS WHO MADE OLD INVERNESS SING THE SWEETEST WERE VERY DEFINITELY THE GAME'S ELITE AMONG THE 10 PLAYERS MASSED WITHIN TWO STROKES OF NORMAN'S LEADING 54HOLE SCORE OF 203 AS SUNDAY DAWNED WERE TOM WATSON THE US RYDER CUP CAPTAIN WHO'S WON EVERY MAJOR SAVE THE PGA THREETIME US OPEN WINNER HALE IRWIN AND NICK FALDO THE BRITTLE BRIT WHO BY CONSENSUS IS THE BEST OF THE CURRENT BALLSTRIKERS YOUTH WAS REPRESENTED BY THE LIKES OF SINGH WHOSE BIOGRAPHY READS LIKE SOMETHING OUT OF THE HEART OF DARKNESS HE SERVED A TWOYEAR EXILE AS A PRO IN BORNEO AFTER BEING SUSPENDED FROM THE ASIAN TOUR ON A CHEATING CHARGE HE STILL DISPUTES AND BOB ESTES A 27YEAROLD FORMER UNIVERSITY OF TEXAS FLASH AZINGER AND NORMAN BOTH FIT SOLIDLY INTO CATEGORY A DESPITE COMING HERE MAJORLESS THE FORMER STOOD NO 2 ON THE US TOUR'S CAREER MONEY LIST WITH OFFICIAL EARNINGS OF 63 MILLION AND HAD WON TOURNEYS IN SEVEN CONSECUTIVE YEARS THE BEST RECORD AMONG ACTIVE PLAYERS THE CHARISMATIC NORMAN WON THE BRITISH OPENS OF 1986 AND THIS YEAR AND LOST A COUPLE OF OTHER MAJORS TO JAWDROPPING SHOTS BY FOES ONE OF THOSE CAME AT INVERNESS WHEN BOB TWAY SANK A BUNKER SHOT ON THE 72ND HOLE TO BEAT HIM BY A STROKE IN THE 1986 PGA THIS ONE CAME DOWN TO THE LAST HALFDOZEN HOLES WITH FALDO SINGH AZINGER AND NORMAN BRIEFLY TIED AT 11 UNDER PAR ALBEIT AT DIFFERENT PLACES ON THE COURSE SINGH BLINKED FIRST WHEN HE DROPPED A STROKE TO PAR BY THREEPUTTING THE 16TH 70TH GREEN AND HIS 72HOLE SCORE OF 274 WOULD BE GOOD FOR FOURTH PLACE FALDO HAD A CHANCE TO GO 12 UNDER WITH A SIXFOOT BIRDIE PUTT AT THE SAME PARFOUR HOLE BUT IT MISSED AND HE HAD HIS THIRD 68 TO GO WITH HIS 69 ON SATURDAY AND AN EVENTUAL THIRD PLACE NORMAN WHO'D STARTED SUNDAY AHEAD SCUFFED A SAND SHOT ABOUT THREE FEET JUST LIKE YOU OR ME IN POSTING A DOUBLEBOGEY ON THE PARTHREE 6TH HOLE BUT RALLIED THEREAFTER WITH BIRDIES ON HOLES SEVEN EIGHT 11 13 AND 16 AND HIS 20FOOT BIRDIE TRY ON 18 WHICH WOULD HAVE WON THE THING FOR HIM OUTRIGHT SLIPPED JUST A BALLWIDTH PAST AZINGER WHO BEGAN THE DAY IN A SIXWAY SECOND PLACE TIE AFTER ROUNDS OF 69 66 AND 69 STOOD ONE OVER PAR THROUGH 11 HOLES BUT BIRDIED 12 13 AND 14 AND ON THE 435YARD 17TH RAPPED A 154YARD NINEIRON SHOT TO FIVE FEET FROM THE PIN AND HOLED THE PUTT TO TIE BOTH PLAYERS JUST MISSED BIRDIE PUTTS ON THE FIRST EXTRA HOLE NORMAN FROM ABOUT 20 FEET AND AZINGER FROM 16 OR 17 ON THE SECOND THE 361YARD PARFOUR 10TH NORMAN HIT 25 FEET PAST THE CUP FROM LIGHT ROUGH LEFT HIS FIRST PUTT FOUR FEET SHORT AND MISSED FROM THERE AZINGER HAD LIPPED A SIXFOOT BIRDIE TRY AND WAS READY TO TRUDGE OFF TO EXTRA HOLE THREE WHEN NORMAN'S PAR PUTT MISSED THERE'S A LOT OF WAYS FOR A TOURNAMENT TO END AND THAT'S ONE OF THEM AZINGER SHRUGGED LATER GRATEFULLY THE WINNER IS A POPULAR PLAYER KNOWN FOR SOLID ALLAROUND PLAY READY WISECRACKS AND A SEEMINGLY NERVELESS DEMEANOR BUT IN VICTORY HE CONFESSED THAT THE LAST TRAIT WAS ILLUSORY AT LEAST ON SUNDAY I GUESS THAT NEVER HAVING WON A MAJOR PUT A LOT OF PRESSURE ON ME HE SAID AFTER THE SEVENTH HOLE TODAY WHEN I'D LEFT MY THIRD OR FOURTH PUTT SHORT I WONDERED IF I WAS GOING TO THROW UP HE CONCLUDED I'D ALWAYS FELT I WAS GOOD ENOUGH TO WIN A MAJOR I THOUGHT I HAD THE GAME TO WIN BUT UNTIL IT'S DONE YOU DON'T REALLY KNOW 9308170078 930817 LEISURE & ARTS THE MOBILE GUIDE THE ART OF WORSHIP IN SHANGRILA BY JIM OTTAWAY JR PARO BHUTAN THIS IS THE WORLD'S LAST BUDDHIST MONARCHY BESIEGED PHYSICALLY AND SPIRITUALLY BY THE MODERN WORLD A TINY HIMALAYAN KINGDOM OF ONLY 650000 PEOPLE SQUEEZED BETWEEN THE TIBETAN REGION OF CHINA TO THE NORTH INDIA TO THE SOUTH AND EAST AND NEPAL TO THE WEST BHUTAN IS RESISTING THE MODERN FORCES OF ATHEISM DEMOCRACY ILLEGAL IMMIGRATION REFUGEE MIGRATION AND THE INFLUENCE OF WESTERN POPULAR CULTURE ON ITS YOUTH BUDDHISM IS STILL THE DOMINANT FORCE IN BHUTAN'S GOVERNMENT RELIGION AND SOCIAL LIFE AND PEACEFUL ISOLATION HAS BEEN THE DOMINANT FORCE IN BHUTAN'S FOREIGN POLICY SINCE THE BUDDHIST DRUKPA SECT OF TIBET UNITED THE LAND OF THE THUNDER DRAGON IN 1639 NOT UNTIL THE 1960S WERE FOREIGNERS ALLOWED TO VISIT BHUTAN NOW UP TO 4000 TOURISTS A YEAR MAY VISIT BUT ONLY 2500 CAME LAST YEAR BECAUSE OF LIMITED TOURIST FACILITIES A RELATIVELY HIGH 250 A DAY PER PERSON MINIMUM SPENDING REQUIREMENT RECESSIONS IN JAPAN AND EUROPE AND TERRORISM IN INDIA SO AN INVITATION FROM MINGMA NORBU SHERPA DIRECTOR OF WORLD WILDLIFE FUND PROGRAMS IN NEPAL AND BHUTAN TO VISIT BHUTAN DURING THE ANNUAL PARO TSHECHU FESTIVAL WAS A UNIQUE OPPORTUNITY FOR ME AND MY SISTER RUTH SHERER TO ATTEND A COLORFUL BUDDHIST RELIGIOUS CEREMONY RARELY SEEN BY FOREIGNERS PARO HAS THE SOLE AIRPORT IN BHUTAN SERVED ONLY BY THE GOVERNMENT'S DRUK AIR WITH ITS TWO BRITISH AEROSPACE JETS WHICH DESCEND SHARPLY OVER A 7000FOOT HIMALAYAN FOOTHILL TO A SINGLE RUNWAY TUCKED INTO THE VERY NARROW BRIEFLY FLAT PARO VALLEY THE PARO TSHECHU FESTIVAL CELEBRATES PADMA SAMBHAVA CALLED THE GURU RINPOCHE OR MOST PRECIOUS TEACHER LEGEND SAYS THAT HE WAS BORN ON A LOTUS FLOWER FLOATING ON A LAKE IN THE HIMALAYAN REGION OF SWAT IN PAKISTAN AFTER TEACHING THE MAHAYANA BUDDHIST PHILOSOPHY IN INDIA IN THE EARLY EIGHTH CENTURY HE BROUGHT BUDDHISM TO NEPAL AND THEN WAS INVITED TO TEACH IN TIBET AND BHUTAN TODAY THE GURU RINPOCHE IS WORSHIPED AS A BUDDHA IN BHUTAN HIS IMAGE APPEARS IN TRADITIONAL TANGKA PAINTINGS IN HOMES OFFICES AND MONASTERIES ALL OVER BHUTAN WHERE HE IS THE PATRON SAINT THE LARGEST AND RAREST DISPLAYS OF THE FORMULAIC REPRESENTATION OF PADMA SAMBHAVA THE GURU RINPOCHE ARE ON THONGDROELS GIANT TANGKAS UNFURLED LIKE GREAT SAILS ONCE A YEAR AT FESTIVALS IN 11 DZONGS ALL OVER BHUTAN A DZONG IS A LARGE WHITEWASHED FORTRESS WHICH IS THE GOVERNMENT AND RELIGIOUS ADMINISTRATIVE CENTER IN THE NINE LARGEST DISTRICTS OF BHUTAN WHERE CHURCH AND STATE ARE ONE THE PARO TSHECHU THONGDROEL IS A HUGE TAPESTRY ABOUT 75 FEET WIDE AND 60 FEET HIGH WITH COLORFUL PAINTINGS OF THE GURU RINPOCHE HIS EIGHT MANIFESTATIONS AND TWO CONSORTS APPLIQUED ON A BACKGROUND OF DESCENDING SNOW WHITE GREEN AND BROWN HIMALAYAN MOUNTAINS ALL ATTACHED TO A CANVAS BACKING LIKE A GIANT QUILT TSHECHU MEANS TENTH DAY AND IT CELEBRATES THE GREAT DEEDS OF GURU RINPOCHE WHO WAS SAID TO HAVE PERFORMED THEM ON THE TENTH DAY OF THE MONTH THONGDROEL IN THE DZONGKHA LANGUAGE OF BHUTAN MEANS LITERALLY THONG TO SEE AND DROEL LIBERATION LOOKING AT IT INSPIRES A RELIGIOUS EXPERIENCE WHICH UNITES THE VIEWERS WITH THE GURU RINPOCHE AND BRINGS ENLIGHTENMENT AND LIBERATION FROM SAMSARA THE ENDLESS CYCLE OF LIFE DEATH AND REBIRTH MARILYN M RHIE AND ROBERT THURMAN COEDITORS OF THE EXCELLENT CATALOGUE FOR THE 1990 SAN FRANCISCO EXHIBITION WISDOM AND COMPASSION THE SACRED ART OF TIBET ABRAMS EXPLAIN THAT TIBETANS REGARD THEIR TANGKA PAINTINGS AS POINTS OF TRANSITION FROM THE ORDINARY WORLD WE KNOW TO PERFECTED BUDDHIST REALMS OF ENLIGHTENMENT OUR DAY OF ENLIGHTENMENT BEGAN AT 330 AM WHEN MY SISTER OUR HOST MINGMA NORBU SHERPA AND I JOINED SEVERAL THOUSAND EXCITED PILGRIMS OF ALL AGES WALKING IN COLD MOONLIGHT IN THEIR FINEST COLORFUL BROCADES OF TRADITIONAL DRUKPA DRESS TO THE PARO DZONG MONASTERY THEY COME ONCE A YEAR TO SEE THE UNFURLING OF THE SACRED PARO THONGDROEL FROM THE FOURTH FLOOR BALCONY OF THE MONASTERY DOWN TO A COBBLESTONE COURTYARD AT 430 AM JUST AS THE MOON SET IN THE WEST THE THONGDROEL WAS DISPLAYED FOR ONLY THREE HOURS UNTIL 730 AM TO PROTECT IT FROM DIRECT SUNLIGHT WHICH BY PRACTICAL TRADITION MUST NOT TOUCH IT ALWAYS FACING THE SACRED TAPESTRY WE WALKED RESPECTFULLY THROUGH THE REVERENT CROWD TO WOODEN BLEACHERS SET UP FOR ABOUT 200 JAPANESE AND EUROPEAN TOURISTS AT THE NORTH SIDE OF THE COURTYARD THERE WERE ONLY FIVE OTHER AMERICANS ACROSS THE COURTYARD ON THE ROOF OF A THREESTORY WOODEN BUILDING TWO MONKS IN DARK RED ROBES LED THE MUSIC FOR CHANTING AND DANCING IN THE COURTYARD BELOW THE TAPESTRY BLOWING TWO LONG SWISS ALPINE HORNS IN MOURNFUL BASSO CONTINUO WITH THREE SMALLER HIGHPITCHED HORNS CLASHING CYMBALS AND SLOW BEATING DRUMS PRODUCING STRANGE AND FASCINATING SOUNDS TO OUR WESTERN EARS AT 5 AM THE BUDDHIST PILGRIMS IN THE CROWD BEGAN A SLOW PROCESSION UP TO THE TAPESTRY TO TOUCH THEIR HANDS AND HEADS TO THE SACRED IMAGES IT WAS COLD ABOUT 50 DEGREES AT 7500 FEET WE WORE DOWN JACKETS HATS AND WOOL GLOVES AT 720 AM 52 MONKS FORMED A LONG LINE AT THE BASE OF THE HUGE TAPESTRY AND SLOWLY ROLLED IT UP ONE DRUM WAS STRUCK ONCE A MINUTE TO KEEP SLOW RHYTHM AS A HEAD MONK CALLED OUT ORDERS OVER A LOUDSPEAKER LIKE A SHIP'S CAPTAIN TRIMMING SAILS THEN THE ROLLEDUP TAPESTRY WAS COVERED IN CANVAS AND CARRIED INTO THE MONASTERY FOR ANOTHER YEAR OF SAFEKEEPING DANCING CHANTING AND MUSIC STARTED AGAIN THE ATMOSPHERE TURNED FROM QUIET RELIGIOUS CEREMONY TO JOYFUL COUNTRY FAIR AS THE CROWD GREW TO FOUR OR FIVE THOUSAND IN DAYLIGHT AND BOOTHS OPENED WITH FOOD AND GAMES WE LEARNED THE NEXT DAY FROM LOPEN SLOBDPON PADMALA DIRECTOR OF THE NATIONAL LIBRARY OF BHUTAN 68 YEARS OLD AND A BUDDHIST MONK FROM THE AGE OF EIGHT THAT THE PARO THONGDROEL WAS MADE 300 YEARS AGO IT IS NOT A MODERN CREATION LIKE THE EVEN LARGER 83 BY 93FOOT TAPESTRY DEDICATED MARCH 2 AT THE PUNAKHA DZONG TO NGAWANG NAMGYAL THE ABBOT WHO UNIFIED BHUTAN IN 1639 THE GRACIOUS LOPEN PADMALA LOPEN MEANS LEARNED TEACHER EXPLAINED THE INTRICATE ICONOGRAPHY OF THE PARO TAPESTRY TO US IN HIS OFFICE IN THIMPHU THE CAPITAL OF BHUTAN THE CENTRAL FIGURE OF THE THONGDROEL HE SAID IS THE GURU RINPOCHE SEATED ON AN OPEN LOTUS FLOWER WHERE HE WAS BORN HE IS DRESSED IN THE ROBES OF A PRINCE HE WEARS A HAT FROM HIS BIRTHPLACE IN SWAT WITH AN EAGLE'S FEATHER ON TOP ANCIENT SYMBOL OF PENETRATING WISDOM IN HIS RIGHT HAND THE GURU RINPOCHE HOLDS THE VAJRA OR THUNDERBOLT SYMBOL OF BUDDHIST COMPASSION IN HIS LEFT HAND HE HOLDS A WHITE SKULL BOWL WITH AN OFFERING OF FOOD IN THE CROOK OF HIS LEFT ARM HE HOLDS A KHATVANGA A STAFF WITH THREE HEADS FIXED ON TOP IN THREE STAGES OF DECAY ONE FRESHLY SEVERED ONE SHRUNKEN ONE DRIED SKULL SYMBOLIZING THE CONQUEST OF DESIRE HATE AND IGNORANCE THE GURU RINPOCHE IS FLANKED BY HIS TWO CONSORTS THE INDIAN PRINCESS MANDARAVA ON HIS RIGHT AND THE TIBETAN QUEEN YESHEY TSHOGYE ON HIS LEFT THEY REPRESENT MALEFEMALE UNION AND THE TRANSCENDENCE OF OPPOSITES AROUND THE TOP AND SIDES OF THE TAPESTRY ARE THE TRADITIONAL IMAGES OF THE EIGHT MANIFESTATIONS OF PADMA SAMBHAVA WITH HIS EIGHT MIRACULOUS DEEDS AT THIS FESTIVAL THEY LOOK AND FEEL MIRACULOUS EVEN TO A VISITOR FROM VERY FAR AWAY MR OTTAWAY IS PRESIDENT OF THE INTERNATIONAL GROUP OF DOW JONES & COMPANY PUBLICATIONS 9308170077 930817 BUSINESS BRIEFS FIRST OF AMERICA BANK CORP ACQUIRED PIONEER MORTGAGE CO A UNIT OF PIONEER SAVINGS BANK OF NORTH CAROLINA FOR AN UNDISCLOSED PRICE THE ACQUISITION INCLUDES FIVE MORTGAGE OFFICES IN NORTH CAROLINA AMERICAN TELEPHONE & TELEGRAPH CO'S NCR CORP SAID SPECIALITY RETAILER NORDSTROM INC PURCHASED A 4 MILLION COMPUTER NETWORK TO TRACK INVENTORY AND ANALYZE SALES AND VENDOR PERFORMANCE TRANZONIC COS MANUFACTURER OF PAPER CLOTH AND VINYL PRODUCTS ACQUIRED EVERREADY APPLIANCE MANUFACTURING CO A ST LOUIS MAKER OF IRONING BOARDS AND STEP STOOLS TERMS WEREN'T DISCLOSED MBNA CORP FORMED A NEW UNIT MBNA INTERNATIONAL BANK LTD TO ISSUE CREDIT CARDS IN THE UNITED KINGDOM BEGINNING IN SEPTEMBER EDITEK INC A BURLINGTON NC BIODIAGNOSTIC CONCERN WILL ACQUIRE PRINCETON DIAGNOSTIC LABORATORIES OF AMERICA INC IN A STOCK SWAP VALUED AT ABOUT 4 MILLION AMERICAN INTERNATIONAL GROUP INC SAID A JOINT VENTURE BETWEEN AIG AND A FINNISH INSURANCE COMPANY RECEIVED A LICENSE TO OPERATE AN INSURANCE COMPANY IN LATVIA WHICH WILL UNDERWRITE NONLIFEINSURANCE PRODUCTS 9308170076 930817 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CBL & ASSOCIATES PROPERTIES INC AN INITIAL OFFERING OF 16 MILLION COMMON SHARES VIA GOLDMAN SACHS & CO AG EDWARDS & SONS INC AND PAINEWEBBER INC KELLEY OIL & GAS PARTNERS LTD AN OFFERING OF THREE MILLION LIMITED PARTNER UNITS VIA SMITH BARNEY SHEARSON INC KEMPER SECURITIES INC AND MERRILL LYNCH & CO NATIONAL RV HOLDINGS INC AN INITIAL OFFERING OF 600000 COMMON SHARES VOLUNTEER CAPITAL CORP AN OFFERING OF 870000 COMMON SHARES VIA JC BRADFORD & CO WICKES LUMBER CO AN INITIAL OFFERING OF 28 MILLION COMMON SHARES AND 100 MILLION OF SENIOR SUBORDINATED NOTES DUE 2003 VIA BT SECURITIES CORP AND SALOMON BROTHERS 9308170075 930817 HEARD ON THE STREET CONSERVATIVE SECURITIES FIRM DONALDSON LUFKIN IS FINDING CASINORELATED OFFERINGS A GOOD BET BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DONALDSON LUFKIN & JENRETTE IS ROLLING THE DICE THE USUALLY CONSERVATIVE SECURITIES FIRM IS SHOWING UP MORE AND MORE OFTEN AS AN UNDERWRITER OF CASINORELATED STOCK AND BOND OFFERINGS AND IT PLANS TO BRING OUT MORE THIS POSES A DILEMMA FOR INVESTORS WHO ARE RIGHTFULLY SKEPTICAL OF THIS YEAR'S CASINOSTOCK MANIA BUT ALSO ARE AWARE OF DONALDSON LUFKIN'S REPUTATION FOR DOING QUALITY STOCK RESEARCH RIVALS PRIVATELY ACCUSE DONALDSON LUFKIN OF LOWERING ITS STANDARDS BY FOCUSING ON THIS HYPEDUP SECTOR OF THE MARKET BUT JOE L ROBY CHAIRMAN OF DONALDSON LUFKIN'S BANKING GROUP ASSERTS WE'VE ATTEMPTED TO DO BUSINESS WITH COMPANIES THAT ARE GOING TO BE VERY SUCCESSFUL OVER THE LONG RUN WE'VE TRIED TO KEEP THE STANDARDS THE SAME WHETHER THE MARKET IS VERY HOT FOR THESE ISSUES OR NOT WHY CASINOS OF ALL THINGS WE LIKE THIS BUSINESS BECAUSE A LOT OF THESE COMPANIES ARE CAPITALHUNGRY MR ROBY SAYS DONALDSON LUFKIN ALREADY HAS BEEN INVOLVED IN MORE THAN 25 CASINO UNDERWRITINGS THE FIRM'S INITIAL PUBLIC OFFERINGS OF STOCK INCLUDE ARGOSY GAMING AND GTECH HOLDINGS AS LEAD UNDERWRITER AND IPOS HOLLYWOOD CASINO AND STATION CASINOS AS COUNDERWRITER UNDER SALOMON BROTHERS ANOTHER BIG UNDERWRITER OF CASINO ISSUES IN DONALDSON LUFKIN'S PIPELINE ASSUMING THE MARKET CAN ABSORB THEM ARE IPOS FOR JUMER HOTELS & CASINOS AND LADY LUCK GAMING BOTH EXPECTED TO BE LAUNCHED AS SOON AS NEXT MONTH WITH DONALDSON LUFKIN AS LEAD UNDERWRITER TIME WILL TELL IF DONALDSON LUFKIN'S CASINO OFFERINGS ARE BETTER THAN OTHER SECURITIES FIRMS' SAYS KATHY SMITH OF RENAISSANCE CAPITAL IN GREENWICH CONN WHICH SPECIALIZES IN IPO RESEARCH FOR INSTITUTIONS BUT SHE WILL LOOK MORE FAVORABLY ON A CASINO OFFERING BACKED BY DONALDSON LUFKIN BECAUSE OF THE FIRM'S QUALITY REPUTATION SHE SAYS THE STOCK ACTION IN GTECH AND ARGOSY GAMING A RIVERBOATCASINO OPERATOR SHOWS THAT DONALDSON LUFKIN'S DEALS ARE NO MORE IMMUNE THAN OTHERS' TO THE VOLATILITY OF THE CASINO SECTOR BOTH SHOT UP FROM THEIR OFFERING PRICES BUT ARE CURRENTLY MORE THAN 25 BELOW THEIR HIGHS THE CASINOS DONALDSON LUFKIN CHOOSES TO UNDERWRITE AREN'T SUREFIRE WINNERS EITHER TAKE LADY LUCK WHICH PLANS TO TRADE ON NASDAQ UNDER THE STOCK SYMBOL LUCK IN ITS STRIKINGLY LIMITED HISTORY IT HAS OPERATED A DOCKSIDE CASINO IN MISSISSIPPI SINCE FEBRUARY AND A COLORADO GAMBLING SALOON WHICH HAD INCURRED LOSSES UNDER PRIOR MANAGEMENT SINCE MAY THE COMPANY WITH REVENUE OF 15 MILLION IN THE FIRST FIVE MONTHS OF THE YEAR ALREADY ANTICIPATES NEEDING MORE CAPITAL FOR EXPANSION THAN THE 29 MILLION IT HOPES TO COLLECT IN THE IPO ONE UNUSUAL RISK THE COLORADO CASINO IS NEAR A SUPERFUND TOXIC CLEANUP SITE AND THERE IS THE POTENTIAL THAT THE ENVIRONMENTAL PROTECTION AGENCY COULD IDENTIFY THE LAND FOR CLEANUP AND BILL LADY LUCK WARNS THE OFFERING'S PROSPECTUS CASINO ISSUES HAVE HAD HIGHROLLING VALUATIONS UP TO NOW DONALDSON LUFKIN HAD PLANNED TO PRICE RIVERBOAT OPERATOR JUMER HOTELS FOR EXAMPLE AT 14 TO 16 A SHARE OR A HEFTY 79 TIMES ITS EARNINGS OF 19 CENTS A SHARE LAST YEAR THAT PRICE WILL LIKELY BE TRIMMED WHEN DONALDSON LUFKIN TRIES TO LAUNCH THE OFFERING TO CASINO COMPANIES LOOKING TO GO PUBLIC DONALDSON LUFKIN'S PITCH IS THAT THE SECURITIES FIRM HAS BECOME AN EXPERT IN THE INDUSTRY THROUGH ALL ITS GAMBLING DEALS AS WELL AS INVESTMENTBANKING ADVISORY ROLES WITH CASINO COMPANIES RANGING FROM RESORTS INTERNATIONAL TO HARVEY'S WAGONWHEEL BUT RIVALS GROUSE THAT GAMBLING IS ONE OF THE ONLY NICHES LEFT FOR DONALDSON LUFKIN AS THE FIRM TRIES TO EXPAND ITS INVESTMENTBANKING CLOUT LONG KNOWN AS AN EXCELLENT COUNDERWRITER ON STOCK OFFERINGS OF OTHER INVESTMENT BANKS DONALDSON LUFKIN HAS BEEN ANGLING FOR LEADUNDERWRITER ROLES MR ROBY CALLS IT A MAJOR PUSH THAT HAS ALLOWED THE FIRM TO BE THE LEAD MANAGER IN 40 OF ITS TRANSACTIONS GAMING ISSUES HAVE BEEN A SIGNIFICANT PART OF THAT HE SAYS THAT COULD MEAN MORE AND MORE GAMBLING ISSUES THE UNIVERSE OF PUBLICLY TRADED GAMBLING STOCKS HAS ALREADY EXPLODED IN THE PAST YEAR FROM ABOUT 20 TO NEARLY 60 SOME WALL STREET SHORTSELLERS AND OTHER MARKET SKEPTICS PREDICT NOTHING SHORT OF A FULLSCALE CRASH YOU'RE GETTING TOWARD THE END RUN IN CASINO STOCKS SAYS ONE TRADER WHERE PEOPLE ARE TRYING TO CASH IN ON THESE THINGS AND GET THEM PUBLIC WHILE THEY CAN DELTA QUEEN STEAMBOAT CO WHICH DOESN'T OFFER GAMBLING DISPUTES ITS INCLUSION IN A TABLE OF GAMBLINGRELATED STOCKS THAT ACCOMPANIED TUESDAY'S HEARD ON THE STREET COLUMN ALTHOUGH THE 1992 PROSPECTUS SAYS THE STEAMBOAT CRUISE COMPANY IS EXPLORING OPPORTUNITIES WITH POTENTIAL GAMING OPERATORS DELTA QUEEN NOW SAYS THAT SUCH TALKS AREN'T EXPECTED TO BEAR FRUIT 9308170074 930817 FOREIGN EXCHANGE DOLLAR SINKS AGAINST MOST CURRENCIES IS CLOSE TO PARVALUE' LEVEL OF 100 YEN BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR GOT PUNCHED AROUND MONDAY FALLING AGAINST MOST MAJOR CURRENCIES THE DOLLAR HIT A HISTORICAL LOW OF 10080 YEN ON MONDAY AND IN TOKYO TUESDAY MORNING IT WAS TRADING EVEN LOWER TOUCHING 10048 YEN THE CLINTON ADMINISTRATION WHICH THROUGH THE US TREASURY ACTS IN COORDINATION WITH THE FED ON INTERVENTION MATTERS APPARENTLY SEES NO REASON TO ACT TO HALT THE YEN'S RISE AS LONG AS CURRENCY MOVEMENTS REMAIN ORDERLY STILL TRADERS SAID A DOLLAR PLUNGE ACROSS THE BOARD MIGHT PROMPT SOME DOLLARBUYING BY THE FED AS A SIGNAL TO MARKETS THAT THE CURRENCY'S DECLINE ISN'T OUT OF CONTROL LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16870 MARKS DOWN SHARPLY FROM 17115 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10155 YEN DOWN FROM 10180 YEN STERLING WAS TRADING AT 14890 UP FROM 14595 AT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10053 YEN AND 16855 MARKS THE BANK OF JAPAN CONTINUED TO BUY DOLLARS MONDAY BUT ITS EFFORTS WERE WASHED AWAY BY A TIDE OF DOLLAR SELLING AS THE US CURRENCY'S DECLINE BROUGHT IT NEARER THE IMPORTANT PSYCHOLOGICAL LEVEL OF 100 YEN TRADERS SAID THAT SHEER MOMENTUM HAD LONG OVERWHELMED ANY FUNDAMENTAL REASONS FOR A WEAKER DOLLAR THE US CURRENCY BEGAN ITS DOWNWARD TREND IN FEBRUARY PARTLY ON MARKET SENTIMENT THAT THE CLINTON ADMINSTRATION WANTED TO CUT INTO JAPAN'S TRADE SURPLUS WITH A STRONG YEN IN THE SHORT RUN TRADERS SAID ONLY FEDERAL RESERVE INTERVENTION SIGNIFYING THAT THE ADMINISTRATION THINKS THE DOLLAR HAS FALLEN ENOUGH IS LIKELY TO STOP THE DOLLAR'S SLIDE THE FEDERAL RESERVE OFTEN STEPS IN TO CONTROL SUDDEN CURRENCY MOVEMENTS BY BUYING OR SELLING DOLLARS ON THE OPEN MARKET THOUGH THE DOLLAR'S RECENT DECLINE HAS BEEN IN MEASURED STEPS THE CURRENCY HAS CHALKED UP A NEW HISTORICAL LOW EVERY DAY SINCE LAST WEDNESDAY'S NEWS THAT JAPAN'S TRADE SURPLUS WAS WIDER THAN EXPECTED IN JULY THE US IS NOW APPOACHING PAR VALUE OR 100 YEN AND TRADERS SAID THEY EXPECT THE DOLLAR TO REACH THAT LEVEL SOMETIME THIS WEEK PERHAPS AS EARLY AS TUESDAY BUT NORI KATO A VICE PRESIDENT AT INDUSTRIAL BANK OF JAPAN SAID THE DOLLAR IS UNLIKELY TO REMAIN THAT WEAK FOR VERY LONG INTUITIVELY I DON'T THINK THE WORLD IS READY FOR A PAR DOLLARYEN HE ADDED BECAUSE OF THE PSYCHOLOGICAL BAGGAGE SURROUNDING PAR VALUE KATO SAID SPECULATORS MAY START TO SHORT THE YEN WHEN THE DOLLAR FALLS BELOW 100 YEN FURTHERMORE CUSTOMER DEMAND FOR THE DOLLAR WAS LIKELY BELOW THE 100YEN LEVEL AS US CORPORATIONS WITH SUBSTANTIAL YENEARNING INTERESTS IN JAPAN GRAB AT BARGAIN DOLLAR LEVELS THE MARKET IS WATCHING A MEETING OF JAPANESE ECONOMIC MINISTERS SET FOR THURSDAY TRADERS SAID MOVES TO STIMULATE THE JAPANESE ECONOMY PROBABLY WILL BE ON THE AGENDA ECONOMIC STIMULUS PRESUMABLY WOULD INCREASE JAPANESE DOMESTIC SPENDING AND EVENTUALLY HELP NARROW THE COUNTRY'S TRADE SURPLUS BUT TRADERS SAID DRASTIC MOVES ON THE SURPLUS PROBABLY WOULD BE NEEDED TO CHANGE THE CLINTON ADMINISTRATION'S OUTLOOK THOSE CHANGES WHICH WOULD INVOLVE CONCRETE STEPS TO OPEN JAPANESE MARKETS TO FOREIGN GOODS ARE UNLIKELY TO HAPPEN QUICKLY THEY SAID 9308170073 930817 CELLULARPHONE FIRMS WIN DISMISSAL OF HEALTH SUIT CHICAGO A JUDGE HERE DISMISSED A CLASSACTION LAWSUIT AGAINST A GROUP OF CELLULAR TELEPHONE COMPANIES IN WHICH IT WAS ALLEGED THAT WIRELESS TELEPHONES POSE A HEALTH THREAT TO USERS JUDGE EDWIN BERMAN OF THE CIRCUIT COURT OF COOK COUNTY ILL SAID HE DIMISSED THE CASE BECAUSE THE FEDERAL COMMUNICATIONS COMMISSION AND THE FOOD AND DRUG ADMINISTRATION HAVE PRIMARY JURISDICTION OVER THE ISSUES RAISED IN THIS CASE AND BECAUSE THE PLAINTIFFS HAVE NOT ALLEGED ANY COMPENSABLE INJURY IN THE COMPLAINT AT A JULY HEARING THE JUDGE SAID THAT THERE WAS NO HARD EVIDENCE LINKING THE USE OF PORTABLE PHONES TO CANCER AS WAS ALLEGED IN THE CASE ACCORDING TO A NEWS RELEASE ISSUED BY THE CELLULAR TELECOMMUNICATIONS INDUSTRY ASSOCIATION THE RULING HAS NO IMPACT ON THE CONTINUING LAWSUIT IN FLORIDA IN WHICH DAVID REYNARD OF ST PETERSBURG CLAIMS HIS WIFE'S USE OF HER PORTABLE PHONE CAUSED OR CONTRIBUTED TO HER FATAL BRAIN CANCER 9308170072 930817 LETTERS TO THE EDITOR KIDS AND SEX ED WAR OF IDEOLOGIES LAWRENCE CRINER'S MARTIAL TITLE THE CONDOM BRIGADES EDITORIAL PAGE JULY 23 POINTS APTLY TO THE ARRIVAL OF THE MOTHER OF AMERICA'S CULTURAL BATTLES THE WAR ON A TACTICAL LEVEL IS ABOUT SEX AS GK CHESTERTON FORESAW WHEN HE PREDICTED THAT COMMUNISM WOULD FALL BUT THAT A DECISIVE STRUGGLE FOR CIVILIZATION ITSELF SEXUALLY ROOTED WOULD ENSUE THE PROVOCATION FOR SUCH A CRITICAL BLOOD FEUD AS MR CRINER GRASPS ASTUTELY IS INDEED AT HAND EVER MORE SYSTEMATIC EXPLICIT GRAPHIC AND VALUENEUTRAL SEX EDUCATION SPECIFICALLY MOST INCENDIARY WHEN AGEINAPPROPRIATE TRADITIONALIST PARENTS ARE INCREASINGLY MOBILIZING WHEN PUBLIC SCHOOL INNER CIRCLES COOPTED BY SEXUAL IDEOLOGUES TACITLY OR OTHERWISE ACCEPT SUCH IDIOCIES OR OUTRAGES AS TO ADD TO CRINER'S INVENTORY UNCRITICALLY TEACHING ABOUT GLOBAL POPULATION CONTROL IN A COMMUNITY ADJACENT TO MY OWN A SCIENCE TEACHER IN A SEVENTHGRADE CLASSROOM SPOKE APPROVINGLY OF CHINA'S SUCCESS IN THIS REGARD FAILING TO MENTION THAT COUNTRY'S PREDILECTION FOR MASS EXTERMINATION OF UNBORN FEMALE LIFE BUT HOW DOES SEX ED FOR KINDERGARTERNERS BEAR ON THE FATE OF CIVILIZATION THE WORSTCASE SCENARIO AS UTOPIANS THE SEXED BRIGADE BELIEVES ITSELF CHOSEN TO CORRECT SOCIETY'S DEFECTS AND DESERVING OF TOTAL POWER TO ACHIEVE ITS ENDS IN COOPTING YOUTH'S SEXUAL FORMATION THE BRIGADE GAINS CONSIDERABLE CONTROL OVER ITS MIND AT THE EXPENSE OF PARENTAL AUTHORITY YOUTH ABSORBS THE REST OF THE BRIGADE'S IDEOLOGY TYPICALLY STATIST SOCIALIST PACIFIST AND SECULARIST AND THUS NOT PROTECTIVE OF INDIVIDUAL FREEDOM DEEP CULTURAL STRUCTURES MOST IMMEDIATELY ECONOMIC ARE TRANSFORMED ENDGAME FALL INTO BARBARISM WITH UNCOMPROMISING TENACITY OPPONENTS OF SEXUALITY EDUCATION LIKE MR CRINER REFUSE TO LET GO OF TWO BEDROCK BELIEFS NO MATTER HOW CONTRADICTORY ON THE ONE HAND THEY SAY WICKED LIBERTINES ARE OUT TO LEAD OUR CHILDREN INTO DANGEROUS RELATIVISTIC SEXUAL BEHAVIOR THROUGH RADICAL NEW CURRICULA THAT REJECT TRADITIONAL VALUES MOCK PARENTAL AUTHORITY AND UPEND THE STATUS QUO IN THE NEXT BREATH EAGER TO ASSIGN BLAME FOR AMERICA'S UNCONSCIONABLE RATE OF TEENAGE PREGNANCY AND CHILDBIRTH THEY POINT TO THE VERY SAME BOGEYMEN THIS TIME DRESSED UP AS DEFENDERS OF AN ENTRENCHED LONGSTANDING FAILED SEXEDUCATION POLICY NEITHER BELIEF IS CORRECT THE TRUTH FIRST OF ALL IS THAT THE US HAS NEVER TRIED TO IMPLEMENT A COMPREHENSIVE POLICY ON SEXUALITY EDUCATION IF MR CRINER WERE TO INVESTIGATE THE ACTUAL EFFECTS OF EDUCATIONAL POLICIES THAT ENCOURAGE OPEN HONEST DISCUSSION OF SEXUALITY IN AN AGEAPPROPRIATE MANNER HE SHOULD LOOK TO OTHER COUNTRIES SUCH AS SWEDEN FRANCE ENGLAND AND THE NETHERLANDS THERE TEEN PREGNANCY RATES ARE TWO TO SEVEN TIMES LOWER THAN RATES IN THE US THERE NEITHER PARENTS EDUCATORS NOR POLICY MAKERS BELIEVE THAT ALL TEENS NEED IS TO JUST SAY NO SECOND IF FOES OF SEXUALITY EDUCATION WEREN'T SO OBSESSED WITH WAGING A MORALISTIC CRUSADE THEY MIGHT FIND THEMSELVES IN AGREEMENT WITH THEIR PERCEIVED ENEMIES INCLUDING PLANNED PARENTHOOD DR JOYCELYN ELDERS THE CLINTON ADMINISTRATION AND THE NUMEROUS OTHERS WHOM MR CRINER EXCORIATES NO ONE BELIEVES THAT CHILDREN HAVING CHILDREN IS A GOOD THING MOST WOULD AGREE THAT WE MUST HELP OUR YOUNG PEOPLE TO UNDERSTAND SEXUALITY RATHER THAN BECOME ITS TRAGIC VICTIMS PLANNED PARENTHOOD BELIEVES THAT WE MUST TRY A NEW APPROACH ONE THAT EMPHASIZES KNOWLEDGE HONESTY COMMUNICATION SKILLS SELFESTEEM AND RESPONSIBILITY MOST OF ALL ANY APPROACH WE TRY MUST RECOGNIZE REALITY BY AN OVERWHELMING MAJORITY AMERICANS AGREE ISN'T IT ABOUT TIME WE FACED THE REALITY AND TOOK IT AS A STARTING POINT MR CRINER'S SPLENDID ARTICLE DEMONSTRATES BOTH THE FOLLY AND THE MALEVOLENCE OF THE SEXED INDUSTRY THERE IS BY NOW AN AVALANCHE OF DATA THAT CONCLUSIVELY SHOWS HOW INEFFECTUAL IT IS TO PURSUE THE EDUCATIONDETERMINESBEHAVIOR SCHOOL OF THOUGHT FAVORED BY THE SEXPERTS IT IS VALUES NOT EDUCATION THAT DETERMINES BEHAVIOR IF IT WERE EDUCATION THEN SURELY WE WOULD HAVE FAR LOWER RATES OF UNWANTED PREGNANCIES TODAY THAN WE HAD IN THE IGNORANT AND UNENLIGHTENED 1950S BUT WHAT IS MOST DISTURBING ABOUT THE SEXED INDUSTRY IS ITS DETERMINATION TO MONOPOLIZE THE SEXED CURRICULUM THROUGH COERCION BY GOING TO THE COURTS TO CLEANSE THE CLASSROOM OF ABSTINENCEBASED APPROACHES PLANNED PARENTHOOD AND ITS FRIENDS AT THE ACLU HOPE TO SHIELD STUDENTS FROM A PEDAGOGY THAT FINDS SUSTENANCE IN RELIGIOUS DOCTRINE BUT THIS JUST GOES TO SHOW HOW DEEPLY INGRAINED IS THEIR RELIGIOPHOBIA BELIEVE IT OR NOT EVEN ATHEISTS HAVE BEEN KNOWN TO PREFER THE EFFICACY OF THE ABSTINENCEBASED APPROACH AND IF THE SCHOOLS ARE TO BE PURGED OF EVERY TEACHING THAT WAS EVER GROUNDED IN A RELIGION THE COMMISSARS OF THE SEX INDUSTRY WILL BE VERY BUSY INDEED FOR STARTERS WE COULD BAN ALL TEACHING THAT HOLDS INSUBORDINATION THEFT AND VIOLENCE TO BE TABOO WHAT'S NEXT I DO NOT KNOW BUT THERE'S A RUMOR ABOUT TOWN THAT HOLDS THAT A NUMBER OF CATHOLIC SCHOOLS ARE ACTUALLY TEACHING ALGEBRA BETTER HEAD FOR THE COURTS NOW BEFORE WE ALL FALL VICTIM TO ANOTHER ROUND OF RELIGIOUS INDOCTRINATION 9308170071 930817 CREDIT MARKETS TREASURY LONG YIELD FALLS TO NEW LOW AS RALLY ROLLS ON DESPITE LACK OF ANY FRESH KEY DATA BY THOMAS D LAURICELLA AND JACQUELINE DOHERTY SPECIAL TO THE WALL STREET JOURNAL NEW YORK LIKE THE BUNNY IN THE BATTERY COMMERCIALS THE BOND MARKET RALLY JUST KEEPS ON GOING THE YIELD OF THE BENCHMARK 30YEAR TREASURY BOND DROPPED BELOW LAST WEEK'S LOWS TO 630 THE LOWEST SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE BOND IN 1977 ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS YIELD ROSE MORE THAN 5/8 POINT OR MORE THAN 625 FOR A BOND WITH A 1000 FACE VALUE TO 99 10/32 OTHER SECURITIES POSTED DECENT GAINS AS WELL THE 10YEAR NOTE YIELD DROPPED TO 568 FROM 571 BEFORE THIS SUMMER THE LAST TIME THE 10YEAR NOTE YIELDED SO LITTLE WAS IN THE SPRING OF 1971 ITS PRICE ROSE 1/4 POINT TO 100 16/32 BONDS RALLIED DESPITE A LACK OF FRESH MARKETMOVING NEWS THE ONLY ECONOMIC NEWS FOR THE DAY WAS RIGHT IN LINE WITH WALL STREET'S EXPECTATIONS AS THE FEDERAL RESERVE REPORTED INDUSTRIAL PRODUCTION ROSE 04 DURING JULY TRADERS SAID THE MARKET'S GAINS PARTIALLY REFLECTED CONTINUED BUYING IN THE WAKE OF DATA LAST WEEK DEPICTING SUBDUED INFLATION AND SLOW ECONOMIC GROWTH THE INFLATION NUMBERS WE GOT TOWARD THE TAIL END OF LAST WEEK REALLY ALLEVIATED A LOT OF FEARS SAID KEVIN FLANAGAN A MONEYMARKET ECONOMIST AT DEAN WITTER REYNOLDS INC BUT FOR THE MOST PART TRADERS JUST ATTRIBUTED THE BUYING TO A SENSE AMONG DEALERS AND INVESTORS THAT THE MARKET'S RALLY STILL HASN'T RUN OUT OF STEAM OVERALL PEOPLE ARE BULLISH SAID JOHN FECHTER HEAD OF GOVERNMENT SECURITIES TRADING AT AG EDWARDS & SONS YESTERDAY AS IN RECENT SESSIONS THERE WAS SOME SELLING BUT THE PRICE DECLINES WERE IMMEDIATELY MET WITH RENEWED BUYING EVERY TIME WE DIP IT'S VIEWED AS AN OPPORTUNITY TO ENTER THE MARKET SAID MR FLANAGAN OF DEAN WITTER MR FECHTER OF AG EDWARDS SAID THERE CONTINUES TO BE INTEREST FROM INVESTORS MOVING INTO LONGER SECURITIES WE'RE SEEING CORPORATE AND INSTITUTIONAL CUSTOMERS EXTENDING OUT AND TAKING A CHANCE ON THE LONG END AND SO FAR IT SEEMS TO BE WORKING HE SAID IN FACT SOME ANALYSTS SAID MOVES BY CUSTOMERS TO BOOK PROFITS ON POSITIONS HAVE SOMETIMES BEEN DANGEROUS DECISIONS MANY RETAIL INVESTORS HAVE TRIED TO BOOK PROFITS AND HAVE FOUND THEMSELVES UNDERINVESTED AS THE MARKET RACED AHEAD SAID ZANE BROWN HEAD OF FIXED INCOME AT LORD ABBETT & CO THEY THEN HAVE HAD TO COME BACK INTO THE MARKET AT SUBSEQUENTLY HIGHER LEVELS EVERY TIME SOMEBODY DECIDES TO SELL THE BOND IT QUICKLY FINDS ANOTHER BOTTOM AND PUSHES FORWARD MR BROWN SAID MARKET WATCHERS ARGUED THAT GIVEN A CONTINUATION OF THE CURRENT ECONOMIC BACKDROP LITTLE STANDS IN THE WAY OF STILL LOWER YIELDS ON LONGERTERM SECURITIES THE SENSE OVERALL STILL SEEMS TO BE THAT 625 IS THE NEXT TARGET SAID MR FECHTER EVEN IF THE MARKET SUFFERS WHAT SOME SAY IS A LONG OVERDUE CORRECTION ANALYSTS BELIEVE THE DECLINES SHOULD ONLY BE SHORTLIVED WE HAVE HAD A PRETTY POWERFUL RALLY AT THE LONG END AND WE COULD GIVE THAT BACK IF WE GET STRONGER DATA BUT ANY PULLBACK SHOULD BE VIEWED AS A BUYING OPPORTUNITY SAID DAVID GREENLAW AN ECONOMIST AT MORGAN STANLEY & CO THE NEXT MAJOR MOVE IS STILL LOWER MR GREENLAW SAID ADDING THE LONG BOND'S YIELD SHOULD REACH 6 BY EARLY 1994 WITH THE LONG END CONTINUING TO OUTPERFORM THE REST OF THE MARKET THE GAP BETWEEN SHORTTERM AND LONGTERM YIELDS RESUMED ITS NARROWING TREND AS TRADERS REESTABLISHED WHAT ARE KNOWN AS FLATTENING TRADES BY BUYING 30YEAR BONDS AND SELLING SHORTERTERM ISSUES THE WIDELY WATCHED SPREAD BETWEEN TWOYEAR NOTES AND 30YEAR BONDS FELL TO 235 PERCENTAGE POINTS FROM 238 PERCENTAGE POINTS LATE FRIDAY TRADING ACTIVITY WAS ON THE LIGHT SIDE AND DEALERS EXPECT VOLUME TO REMAIN LOW THROUGHOUT THE WEEK TRADERS WILL BE ON WATCH TODAY AND TOMORROW FOR AN OUTRIGHT PURCHASE OF NOTES AND BONDS BY THE FEDERAL RESERVE ANALYSTS BELIEVE THE FED NEEDS TO BUY SECURITIES IN WHAT IS KNOWN AS A PASS AS A WAY OF ADDRESSING A SEASONAL SHORTFALL IN RESERVES THERE IS A VERY STRONG LIKELIHOOD THAT THEY'LL DO AN OUTRIGHT PURCHASE THIS WEEK SAID MR GREENLAW OF MORGAN STANLEY WHILE THE MOVE WOULD HAVE NO MONETARYPOLICY SIGNIFICANCE IT WOULD SERVE TO FURTHER LIGHTEN DEALERS' INVENTORIES OF SECURITIES AND WITH THE FED EXPECTED TO BUY A HEFTY CHUNK OF SECURITIES THAT COULD BOOST THE MARKET IF THEY BUY ISSUES THAT MATURE IN MORE THAN A YEAR IT WILL PROBABLY BE SOMETHING AROUND A 4 BILLION OR 45 BILLION OPERATION MR GREENLAW SAID THE FEDERAL OPEN MARKET COMMITTEE THE POLICYMAKING ARM OF THE FED IS SLATED TO MEET IN WASHINGTON TODAY FED WATCHERS BELIEVE THAT NO CHANGE IN POLICY IS IN THE OFFING AND MOST EXPECT THE CENTRAL BANK TO MAINTAIN ITS BIAS TOWARD RAISING INTEREST RATES OUR GUESS IS THAT THEY ARE GOING TO RETAIN THE BIAS TOWARD TIGHTENING BUT IT SHOULD HAVE LITTLE SIGNIFICANCE FOR THE MARKET MR GREENLAW SAID THEY JUST MADE THE MOVE IN MAY AND THERE IS NOT A WHOLE LOT OF REASON TO REVERSE THAT BUT THERE ARE REASONS TO KEEP POLICY ON COURSE HE SAID MEANWHILE YESTERDAY THE TREASURY SOLD 2458 BILLION OF THREEMONTH AND SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION THE THREEMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 303 FOR A COUPONEQUIVALENT YIELD OF 310 THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 312 FOR A COUPONEQUIVALENT YIELD OF 321 HERE ARE THE RESULTS OF THE AUCTION RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED AUG 19 THE 13WEEK BILLS MATURE NOV 18 1993 AND THE 26WEEK BILLS MATURE FEB 17 1994 JUST ONE US COMPANY OFFERED DEBT YESTERDAY IN THE CORPORATE BOND MARKET THE MOST NOTABLE OFFERING WAS DONE GLOBALLY BY THE CANADIAN PROVINCE OF QUEBEC WHICH PRICED A DEAL FOR 1 BILLION CANADIAN DOLLARS US7606 MILLION THE MOST ACTIVE GROUP OF ISSUERS OF THE DAY WAS FEDERAL AGENCIES WHICH PRICED 659 MILLION OF DEBT TRADING IN THE INVESTMENTGRADE MARKET WAS QUIET AS PRICES FOLLOWED TREASURYS IN THE SECONDARY MARKET FOR JUNK BOND DEBT TRADING WAS ALSO QUIET AS A FEW KEY SECURITIES FIRMS HELD OUTINGS PRICES REMAINED RELATIVELY UNCHANGED RH MACY & CO BONDS TRADED DOWN BY ABOUT TWO POINTS BUT BOUNCED BACK SLIGHTLY TO CLOSE DOWN ABOUT 1 1/2 POINTS THE COMPANY'S 145 BONDS MATURING IN 1998 CLOSED AT 32 WITH THE 145 NOTES MATURING IN 2001 CLOSING AT 1175 ONE TRADER THOUGHT THAT THE BONDS WERE OVERVALUED AND HOLDERS WERE BEGINNING TO REALIZE THAT THE COMPANY WAS UNLIKELY TO EMERGE FROM BANKRUPTCY PROCEEDINGS ANY SOONER THAN EARLY 1995 THE SOLE US CORPORATE OFFERING WAS FROM PANHANDLE EASTERN PIPE LINE CO A UNIT OF PANHANDLE EASTERN CORP WHICH PRICED A 100 MILLION ISSUE OF 31YEAR DEBENTURES THE DEBT WHICH IS NONCALLABLE FOR 10 YEARS WAS PRICED AT 9925 TO YIELD 7261 RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP THE PANHANDLE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO THE COMPANY DECIDED TO ISSUE THE DEBT BECAUSE RATES ARE AT ATTRACTIVE LEVELS AND BECAUSE IT RECENTLY COMPLETED NECESSARY FILINGS OF FINANCIAL STATEMENTS A COMPANY OFFICIAL SAID THE 31YEAR PAPER FIT ITS MATURITY SCHEDULE HE ADDED QUEBEC HAD THE LARGEST DEAL OF THE DAY HOWEVER WITH ITS GLOBAL OFFERING OF THE TOTAL ABOUT 32 OF THE ISSUE WAS SOLD TO INVESTORS IN EUROPE 5 IN ASIA 28 IN THE US AND 34 IN CANADA SAID ONE SYNDICATE OFFICIAL THE DEAL WAS ATTRACTIVE BECAUSE IT WAS PRICED OFF CANADIAN GOVERNMENT SECURITIES WHICH YIELD ABOUT 1 MORE THAN COMPARABLE US TREASURYS THE OFFICIAL SAID AS A RESULT INVESTORS LOOKING FOR HIGH YIELDS SCRAMBLED FOR THE PAPER QUEBEC'S OFFERING ACTUALLY WASN'T SCHEDULED TO BE PRICED UNTIL TODAY BUT THERE WAS ENOUGH DEMAND TO PUSH UP THE OFFERING DATE TO YESTERDAY THE DEBT WAS SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO AND SCOTIAMCLEOD INC PRICES OF MUNICIPAL BONDS ENDED UNCHANGED TO 3/8 POINT HIGHER AFTER A CALM SESSION IN SECONDARY TRADING THE SOUTH BROWARD HOSPITAL DISTRICT OF FLORIDA'S 5375 REVENUE REFUNDING BONDS OF 2013 ENDED STEADY AT 98 1/2 TO YIELD 548 BUT THE VALDEZ ALASKA 585 MARINE TERMINAL REVENUE REFUNDING BONDS OF 2025 ENDED 3/8 HIGHER AT 100 5/8 TO YIELD 580 ALTHOUGH THE MOOD ABOUT TAXEXEMPT BONDS REMAINS SOLIDLY BULLISH BECAUSE OF THE HIGHER FEDERAL INCOME TAXES RECENTLY SIGNED INTO LAW SOME MUNI SPECIALISTS SAY GAINS COULD BE LIMITED IN THE NEXT FEW DAYS BECAUSE PRICES ROSE QUITE SWIFTLY EARLY LAST WEEK HOWEVER THE PRIMARY SECTOR WILL BE ACTIVE THE MORE THAN 2 BILLION OF BONDS CURRENTLY ON THIS WEEK'S PRICING CALENDAR INCLUDES SIZABLE OFFERINGS FROM THE MICHIGAN STATE BUILDING AUTHORITY AND PENNSYLVANIA A MORGAN STANLEY & CO GROUP IS EXPECTED TO PRICE THE MICHIGAN STATE BUILDING AUTHORITY'S 4988 MILLION OF REVENUE REFUNDING BONDS TOMORROW OR THURSDAY BIDS FOR PENNSYLVANIA'S 242 MILLION THIRD SERIES OF 1993 GENERAL OBLIGATION BONDS WILL BE TOMORROW MOST MORTGAGE SECURITIES POSTED SMALL PRICE GAINS TRADING WAS EXTREMELY LIMITED AS MAY BE THE CASE FOR SEVERAL SESSIONS TO COME THAT'S BECAUSE INVESTORS HAVING PUT THE QUARTERLY REFUNDING AND IMPORTANT INFLATION DATA BEHIND THEM LIKELY WILL TRY TO AVOID TAKING ON MAJOR NEW BETS DURING THE LAST COUPLE OF WEEKS OF SUMMER AMONG CURRENT COUPONS FOR SEPTEMBER DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 SECURITIES ENDED 3/32 HIGHER AT 100 1/8 FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 ISSUES ENDED 1/8 HIGHER AT 99 30/32 AND FEDERAL HOME LOAN MORTGAGE CORP GOLD 65 ISSUES ENDED 5/32 HIGHER AT 100 1/8 THE LOFTY PRICES OF SOME COUPONS TOO MAY BE ENCOURAGING DEFENSIVENESS IN THE MORTGAGE MARKET HIGHERCOUPON ISSUES SUCH AS 85 SECURITIES AND ABOVE TRADE AT A PREMIUM OF SIX OR MORE POINTS ABOVE PAR AND WERE THE ONLY SECURITIES THAT DIDN'T POST GAINS YESTERDAY MEANWHILE ACTIVITY IS PICKING UP IN THE ASSETBACKED MARKET COMPANIES THAT ISSUE ASSETBACKED SECURITIES ARE EXPECTED TO TAKE ADVANTAGE OF LOW INTEREST RATES THIS WEEK TO BRING SEVERAL DEALS TO MARKET BEGINNING WITH YESTERDAY'S PRICING OF TWO CREDIT CARD TRANSACTIONS MBNA CORP'S MBNA NATIONAL BANK UNIT PRICED A 750 MILLION ISSUE OF FIVEYEAR FIXEDRATE CREDIT CARD SECURITIES TO YIELD 040 PERCENTAGE POINT ABOVE THE TREASURY'S FIVEYEAR NOTE FIRST CHICAGO CORP PRICED A 700 MILLION ISSUE OF FIVEYEAR FLOATINGRATE CREDIT CARD SECURITIES TO YIELD 020 PERCENTAGE POINT ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE 9308170070 930817 ECONOMY PAY RAISES EXPECTED TO KEEP SHRINKING BUT INCREASES SHOULD OUTPACE INFLATION BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SALARY INCREASES ARE EXPECTED TO CONTINUE SHRINKING NEXT YEAR ALTHOUGH THEY STILL SHOULD OUTPACE INFLATION A STUDY SHOWS THE SURVEY OF 2054 COMPANIES BY WYATT CO A CONSULTING FIRM SAID CORPORATIONS EXPECT TO BOOST EMPLOYEE SALARIES 44 NEXT YEAR DOWN FROM 45 THIS YEAR THAT WOULD BE THE SMALLEST RISE IN 20 YEARS ACCORDING TO WYATT OFFICIALS SALARY INCREASES GENERALLY HAVE NARROWED STEADILY SINCE 1982 WHEN THEY PEAKED AT ABOUT 9 SAID MARSHA CAMERON HEAD OF WYATT'S COMPENSATION CONSULTING PRACTICE ANNUAL INFLATION HAS SLID TO ABOUT 3 SO THE RAISES ARE ACTUALLY INCREASING WORKERS' REALEARNED WAGES OVER THE PAST SEVERAL YEARS RAISES HAVE OUTPACED THE INCREASE IN THE CONSUMER PRICE INDEX BY 06 PERCENTAGE POINT TO 15 PERCENTAGE POINTS IF INFLATION GROWS ONLY 3 OR SO IN 1994 THE 45 PROJECTED INCREASE WOULD REPRESENT A STRONG ANNUAL REALEARNED WAGE LOWER SALARY INCREASES CREATE PROBLEMS FOR MANAGERS MS CAMERON SAID BECAUSE SUPERVISORS FIND IT TOUGHER TO USE SALARIES TO DIFFERENTIATE BETWEEN TOPTIER EMPLOYEES AND MEDIOCRE OR SUBPAR WORKERS PARTLY BECAUSE OF THAT SHE SAYS COMPANIES INCREASINGLY ARE TURNING TO COMPANY OR BUSINESS UNIT PERFORMANCE BONUSES TO GIVE WORKERS A CHANCE TO EARN ADDITIONAL REWARDS AS IN PRIOR YEARS THE PROJECTED ANNUAL SALARY BOOST FOR EXECUTIVES IS HIGHER THAN FOR OTHER WORKERS EXECUTIVES CAN EXPECT A 46 AVERAGE RAISE THE SURVEY SHOWS COMPARED WITH 44 FOR MIDDLE MANAGERS AND PROFESSIONALS WHO ARE EXEMPT FROM OVERTIME AND 41 FOR HOURLY WORKERS PACIFIC NORTHWEST WORKERS IN THE PACIFIC NORTHWEST SHOULD GET THE HIGHEST INCREASES 45 SLIGHTLY MORE THAN OTHER REGIONS AND WHILE BUSINESSSERVICES INDUSTRY GROUPS ARE PROJECTING 49 RAISES THE PRIMARY AND FABRICATED METALS PRODUCTS SECTOR FORESEES ONLY A 39 SALARY INCREASE OTHER INDUSTRIES ARE IN THE MIDDLE THE WYATT SURVEY ALSO SHOWS THAT COMPANIES ARE STARTING TO REPLACE THE TRADITIONAL SALARY STRUCTURE WITH A PROGRAM CALLED BROADBANDING IN WHICH A WIDE PAY SCALE COVERS MANAGERS AND NONMANAGERS ALIKE THIS IS BEING DRIVEN IN PART BY ELIMINATION OF MANAGEMENT LAYERS WHILE ONLY 6 OF THE COMPANIES SURVEYED USE BROADBANDING AN ADDITIONAL 4 PLAN TO ADOPT IT WITHIN TWO YEARS AND 31 ARE CONSIDERING IT IN OTHER RESULTS FROM THE SURVEY AND 13 SAY THEY HAVE CUT OR WILL CUT THE LEVEL OF EMPLOYEE BENEFITS PROVIDED IN 1992 OR 1993 9308170069 930817 RETROACTIVITY BUNGLED LARCENY BY ROBERT J BARRO THE RECENT BUDGET ACT PROVIDES MUCH TO CRITICIZE BUT AN ESPECIALLY ATTRACTIVE TARGET IS THE RETROACTIVE FEATURE OF THE INCREASE IN THE MARGINAL TAX RATES AT THE TOP CHANGING THE RULES EX POST FACTO STRIKES MANY PEOPLE AS UNFAIR AND ILLEGAL EVEN WHEN THE CHANGE APPLIES ONLY TO THE RICH THE STRESS ON THE EFFECTIVE DATE OF THE HIGHER RATES WHETHER JAN 1 OR JAN 20 OR JULY 1 OR AUG 1 IS HOWEVER HARD TO COMPREHEND IN THE CONTEXT OF A TAX LEVIED ON ANNUAL INCOME OBVIOUSLY A RISE FROM 31 TO 36 THAT IS EFFECTIVE ON JAN 1 IS EQUIVALENT TO AN INCREASE FROM 31 TO 41 THAT IS EFFECTIVE ON JULY 1 AND THEN REVERTS TO 36 ON JAN 1 1994 TO RULE OUT RETROACTIVITY THE GOVERNMENT WOULD HAVE TO BE PREVENTED FROM EFFECTING RATE CHANGES THAT APPLY BEFORE THE START OF THE NEXT CALENDAR YEAR A GOOD IDEA BUT ONE THAT WOULD REQUIRE AN UNREALISTICALLY HIGHER LEVEL OF ECONOMIC UNDERSTANDING BY JUDGES ECONOMISTS REFER TO RETROACTIVITY AS A CAPITAL LEVY A TAX ON SOME PREVIOUSLY ACCUMULATED GOODS CAPITAL OR OTHER PRIOR ACTIVITY CAPITAL LEVIES ARE SUPPOSED TO BE GOOD FOR INCENTIVES BECAUSE THE ACTIVITY HAS ALREADY OCCURRED IF THE GOVERNMENT RAISES THE TAX RATE ON LAST YEAR'S WORK THEN PEOPLE CANNOT RESPOND BY WORKING LESS LAST YEAR MANY POLICIES AMOUNT TO CAPITAL LEVIES FOR EXAMPLE THE GOVERNMENT CAN DEFAULT ON ITS DEBT OR INFLATE AWAY THE VALUE OF ITS MONEY AFTER PEOPLE HAVE AGREED TO HOLD THE GOVERNMENT'S OBLIGATIONS RENEGE ON PATENTS AFTER INVENTIONS HAVE BEEN MADE RESTRICT THE PRICE OF PHARMACEUTICALS AFTER THE COSTS OF DISCOVERY AND DEVELOPMENT HAVE BEEN INCURRED AND ENACT RENT CONTROLS AFTER INVESTMENTS IN PROPERTY HAVE OCCURRED A SIMILAR PHENOMENON IS THE PROVISION OF RELIEF PAYMENTS TO VICTIMS OF NATURAL DISASTERS AFTER THE VICTIMS HAVE CHOSEN TO LIVE AND INVEST IN AREAS THAT ARE PRONE TO FLOODS HURRICANES AND EARTHQUAKES AS WITH ALL PROPOSALS FOR PERPETUALMOTION MACHINES OR FREE LUNCHES CAPITAL LEVIES HAVE THEIR DRAWBACKS IF THE GOVERNMENT IMPOSES A LEVY TODAY THEN RATIONAL PEOPLE WILL WORRY THAT THE GOVERNMENT WILL IMPOSE ANOTHER IN THE FUTURE THAT IS CAPITAL LEVIES AND RETROACTIVITY MAKE PEOPLE WORRY ABOUT THE SECURITY OF THEIR OWNERSHIP RIGHTS THE BEST WAY TO PROTECT ONESELF AGAINST THESE THREATS IS TO ACCUMULATE LITTLE CAPITAL DON'T SAVE DON'T INVEST DON'T HOLD THE GOVERNMENT'S BONDS OR MONEY DON'T INVENT ANYTHING AND BY ALL MEANS LIVE IN FLOOD PLAINS HURRICANE AREAS AND ALONG THE SAN ANDREAS FAULT CAPITAL LEVIES ARE THEREFORE ULTIMATELY THE MOST DISTORTING KIND OF TAX BECAUSE THEY WEAKEN THE PROPERTY RIGHTS THAT UNDERLIE THE PROSPERITY OF SUCCESSFUL ECONOMIES NORMALLY CAPITAL LEVIES PRODUCE A LOT OF SHORTTERM REVENUES OR OTHER BENEFITS BUT IMPOSE A LONGTERM BURDEN ON THE ECONOMY THE CLINTON ADMINISTRATION HAS HOWEVER BEEN INGENIOUS ENOUGH TO DESIGN A TAX CHANGE THAT CONTAINS A CAPITAL LEVY RETROACTIVITY BUT NEVERTHELESS RAISES LITTLE OR NO REVENUE THE PROBLEM IS THAT IT WANTED A TAX INCREASE THAT WOULD BE PAID ONLY BY THE BAD GUYS THAT IS THE PEOPLE WHO HAVE THE HIGHEST INCOMES AND THEREFORE CONTRIBUTE THE MOST TO THE ECONOMY MORE GENERALLY THE FEDERAL INDIVIDUAL INCOME TAX HAS THREE FEATURES THAT MAKE IT INEFFICIENT AS A RAISER OF REVENUE FIRST IT HAS A GRADUATEDRATE STRUCTURE SO THAT INCOME IS TAXED DIFFERENTLY DEPENDING ON WHO GETS IT AND WHEN THEY GET IT SECOND IT ATTEMPTS TO TAX CAPITAL INCOME AN ATTEMPT THAT YIELDS LITTLE REVENUE BUT CAUSES SUBSTANTIAL DISTORTIONS RELATED ESPECIALLY TO SAVING AND CORPORATE INVESTMENT AND THIRD IT CONTAINS AN ARRAY OF DEDUCTIONS EXEMPTIONS AND CREDITS ALTHOUGH SOME OF THESE WERE ELIMINATED BY THE 1986 REFORMS THE WAY TO RAISE REVENUE FROM THE INCOME TAX IS TO INCREASE RATES ACROSS THE BOARD OR BETTER YET TO MOVE TOWARD A SYSTEM THAT TAXES LABOR INCOME AT A FLAT RATE WITH NO DEDUCTIONS THUS THE CLINTON ADMINISTRATION COULD HAVE COME UP WITH AN EVEN WORSE PLAN ONE THAT INCLUDED DRAMATIC INCREASES IN THE TAX RATE ON CAPITAL GAINS AND IN PERSONAL EXEMPTIONS TO MAKE THE POINT DIRECTLY COMPARE THE PROCEEDS FROM THE COMPLEX INCOME TAX WITH THOSE FROM THE REMARKABLY SIMPLE SOCIAL SECURITY TAX ON WAGE EARNINGS A FLATRATE LEVY ON LABOR INCOME WITH NO DEDUCTIONS THE FIGURE SHOWS THE RATIOS TO GROSS DOMESTIC PRODUCT OF THE TWO KINDS OF FEDERAL REVENUES FROM 1950 TO 1992 MORE THAN 92 OF THE SOCIALINSURANCE PAYMENTS IN 1992 WERE FOR SOCIAL SECURITYOLDAGE SURVIVORS DISABILITY AND HOSPITAL INSURANCE BUT THE NUMBERS ALSO INCLUDE AMOUNTS PAID INTO UNEMPLOYMENTINSURANCE FUNDS AND GOVERNMENT AND RAILROAD RETIREMENT PLANS THE RATIO OF SOCIALINSURANCE RECEIPTS TO GDP GREW FROM ABOUT 2 IN 1950 TO MORE THAN 8 IN 1992 ALONG WITH NUMEROUS BOOSTS IN TAX RATES AND IN THE CEILING ON TAXABLE WAGES THERE IS NO APPEARANCE OF A LAFFER CURVE YET FOR THIS TYPE OF FLATRATE LEVY INCREASES IN TAX RATES SUCCEEDED ADMIRABLY IN GENERATING VAST AMOUNTS OF REVENUE IN FACT IN 1992 THE FEDERAL GOVERNMENT GOT MORE FROM SOCIALINSURANCE RECEIPTS THAN FROM THE ENTIRE INDIVIDUAL INCOME TAX THIS ACHIEVEMENT IS NOTABLE BECAUSE ALTHOUGH SOCIAL SECURITY TAXES ARE A BURDEN THE DISTORTIONS IMPOSED ON THE ECONOMY DO NOT COMPARE WITH THOSE GENERATED BY THE INCOME TAX THE PROBLEM OF COURSE IS THAT THE INCREASE IN SOCIAL SECURITY TAXES HAS BEEN ROUGHLY MATCHED BY THE EXPANSION OF SOCIAL SECURITY BENEFITS AN INTERESTING REFORM WOULD BE THE SIMULTANEOUS ABOLITION OF THE FEDERAL INCOME TAX AND SOCIAL SECURITY BENEFITS BUT NOT SOCIAL SECURITY TAXES A CHANGE THAT WOULD NOT IMPACT SIGNIFICANTLY ON THE FEDERAL DEFICIT JUST KIDDING MOM THE GENERAL LESSON FOR THOSE WHO LIKE LARGE GOVERNMENT IS THAT THE WAY TO PAY FOR MOST OF IT IS THROUGH A ROUGHLY UNIFORM TAX ON THE BROAD MIDDLE CLASS EXPENDITURE TAXES WORK AS WELL AS INCOME TAXES FOR EXAMPLE IN 1991 FRANCE GERMANY ITALY AND THE UNITED KINGDOM EACH OBTAINED REVENUES BETWEEN 5 AND 8 OF THE GDP IN THE FORM OF VALUEADDED TAXES THAT IS NEARLY AS MUCH IN RELATION TO GDP AS THE US FEDERAL INDIVIDUAL INCOME TAX SINCE I VIEW LARGE GOVERNMENT AS A BAD IDEA AND THINK THAT THE FIGHT AGAINST IT AND NOT OVER BUDGET DEFICITS WAS THE MAIN DISPUTE OF THE 1980S I BELIEVE THAT THE IMPLEMENTATION OF A VAT IN THE US WOULD BE A TERRIBLE IDEA BUT I AM AMAZED THAT LOVERS OF BIG GOVERNMENT SUCH AS THE CURRENT ADMINISTRATION HAVE NOT YET EMBRACED THIS EXCEPTIONAL ENGINE OF GOVERNMENT REVENUE PRESUMABLY IT IS COMING ALONG WITH SUCH OTHER NONSENSE AS A HIGHER MINIMUM WAGE RATE NATIONAL SERVICE AND GOVERNMENTRUN HEALTH CARE ECONOMIC POLICY IN WASHINGTON IS IN A DEPRESSION IN CONTRAST WITH THE BRIGHT IDEAS ON MARKET REFORM PRODUCED IN LATIN AMERICA AND ELSEWHERE IN THE WORLD THE CLINTON ADMINISTRATION CAN COME UP ONLY WITH SOAKTHERICH TAX POLICIES AND OTHER GOVERNMENTIMPOSED INCREASES IN THE COSTS OF DOING BUSINESS TWO REFERENDUMS ARE COMING ON THESE POLICIES ONE INVOLVES THE FINANCIAL MARKETS WHICH HAVE SO FAR MOVED FAVORABLY IN RESPONSE TO A MONETARY POLICY THAT IS COMMITTED TO LOW INFLATION EVEN THE CARTER ADMINISTRATION WOULD HAVE BEEN AN ECONOMIC SUCCESS WITH THIS MONETARY POLICY THE OTHER IS THE 1994 CONGRESSIONAL ELECTIONS 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 MR BARRO A WALL STREET JOURNAL CONTRIBUTING EDITOR IS A PROFESSOR OF ECONOMICS AT HARVARD 9308170068 930817 MARKETING & MEDIA ADVERTISING ICEDTEA CAMPAIGNS ARE BREWING AS BEVERAGE CONTEST HEATS UP BY KEVIN GOLDMAN FOR 22 YEARS THIRSTY CONSUMERS HAVE PERFORMED A RATHER DANGEROUS STUNT IN ADS FALLING BACKWARD INTO A POOL WITH A GLASS OF ICED TEA PRESSED TO THEIR LIPS TAKING THE NESTEA PLUNGE THESE DAYS THE POOL IS GETTING CROWDED SOME OF THE RICHEST MARKETERS AROUND SUCH AS COCACOLA AND PEPSICO ARE DIVING IN LAUNCHING MAJOR ADVERTISING CAMPAIGNS IN THE RACE TO CAPTURE A PORTION OF THE RAPIDLY GROWING MARKET FOR READYMADE ICED TEA SALES OF PREPACKAGED ICED TEA ARE ESTIMATED TO GROW 70 THIS YEAR TO 850 MILLION AT WHOLESALE FROM 500 MILLION LAST YEAR ACCORDING TO BEVERAGE MARKETING WHICH FIGURES THE NEW CATEGORY COULD GROW FOR THREE TO FIVE YEARS MORE BEFORE RUNNING OUT OF STEAM THUS A GLUT OF TEATOUTING COMMERCIALS IS PERMEATING THE AIRWAVES AS NEVER BEFORE THE BLITZ IS EXPECTED TO CONTINUE EVEN AFTER THE END OF THE SUMMER WHEN TEA CONSUMPTION IS HIGHEST IT IS GETTING EASIER TO MARKET ICED TEA YEARROUND THANKS IN PART TO SNAPPLE BEVERAGE THE CATEGORY LEADER SNAPPLE PROVIDES MANY STORES WITH A COOLER EXCLUSIVELY FOR ITS PRODUCTS THEREBY CUTTING DOWN ON THE BATTLE FOR VALUABLE SHELF SPACE ALSO BOLSTERING SALES IS THE SIMPLE FACT THAT READYMADE ICED TEA TASTES BETTER THAN IN YEARS PAST WHEN IT CAME ONLY IN A CAN AS OPPOSED TO GLASS BOTTLES AND TASTED MORE LIKE WELL THE CAN THAN TEA LEAVES EACH COMPANY HAS OPENED UP THE KITTY AND IS SPENDING ON ADVERTISING BECAUSE EACH WANTS TO DOMINATE THE CATEGORY SAYS MICHAEL BELLAS PRESIDENT OF BEVERAGE MARKETING WINTER SALES WILL DEFINITELY TREND DOWN BUT THE COMPANIES ARE TRYING TO POSITION THE DRINK AS ONE THAT CAN BE CONSUMED ALL YEAR THE TEA TITANS UNILEVER GROUP'S LIPTON BRAND IN CAHOOTS WITH PEPSI NESTLE'S NESTEA IN PARTNERSHIP WITH COKE AND SNAPPLE AMONG OTHERS ARE SPENDING A BUNDLE TO MOVE THE LIQUID LIPTON SPENT ABOUT 43 MILLION LAST YEAR ADVERTISING ITS READYMADE BREW WHILE NESTEA SPENT ABOUT TWICE THAT MUCH AT 9 MILLION ACCORDING TO LEADING NATIONAL ADVERTISERS SNAPPLE SPENT MORE THAN 10 MILLION LAST YEAR ON ITS ENTIRE BEVERAGE LINE AND IT EXPECTS TO TRIPLE SPENDING TO 30 MILLION THIS YEAR THE TEA SET PURSUES DIVERGENT STRATEGIES IN BUILDING NEW ENTRIES COMMERCIALS FOR THE LIPTON ORIGINAL LINE A PRODUCT OF A PARTNERSHIP BETWEEN PEPSI AND UNILEVER'S THOMAS J LIPTON CO FEATURE ATHLETE BO JACKSON THE ADS FROM WPP GROUP'S J WALTER THOMPSON SHOW MR JACKSON DOWNING AN ENTIRE 16OUNCE BOTTLE OF THE ALLNATURAL DRINK IN A SINGLE SWIG THE ANNOUNCER SAYS YOU CAN'T WAIT TO GUZZLE GULP IT AND CHUG IT MR JACKSON GLARES IN THE CAMERA AND SAYS SOMEWHAT MENACINGLY IT AIN'T HIP TO SIP THE SLOGAN THIS AIN'T NO SIPPING TEA ANOTHER AD FEATURES THREE WOMEN JOINING A SNOOTY OUTDOOR TEA PARTY THEY BRING ALONG BOTTLES OF LIPTON AND BEGIN GULPING THE PRODUCT WHILE THE OTHERS IN ATTENDANCE LOOK ON IN HORROR WE EMPHASIZE OUR CHUGABILITY SAYS A PEPSI SPOKESWOMAN PEPSI SAYS IT IS USING THE SAME AGGRESSIVE MARQUEE STRATEGY THAT IT EMPLOYS FOR SOFT DRINKS THAT IS HAVING HIGHLY PROMOTABLE NAMES AS SPOKESPEOPLE FOR INSTANCE PEPSI SAID THE RHYTHMANDBLUES GROUP BOYZ II MEN SIGNED A MULTIBRAND ENDORSEMENT DEAL FOR THE COMPANY'S SLICE LINE PEPSI SAYS ITS ADS AREN'T SEASONAL EVEN THOUGH THEY FEATURE SWEATY BODIES AND OUTDOOR ACTIVITIES A NEW ROUND OF ADS IS IN THE WORKS AND ALTHOUGH THE COMPANY DECLINES TO BE SPECIFIC IT SAYS THE SPOTS WON'T BE STARRING SUN AND FUN RIVALS' ADS TAKE ON MORE OF A YEARROUND PITCH SNAPPLE IS USING ODDBALL HUMOR NOT UNLIKE THAT FOUND ON THE LATENIGHT DAVID LETTERMAN SHOW TO HIGHLIGHT ITS ALLNATURAL BREW IN THE ADS FROM AGENCY KIRSHENBAUM & BOND SPOTLIGHTING THE COMPANY'S ICED TEA A SNAPPLE DRINKER WRITES THE COMPANY A FAN LETTER WOULD I LIE HE WRITES THE SNAPPLE RECEPTIONIST RESPONDS WE'LL JUST SEE ABOUT THAT THE NEXT SCENE SHOWS THE FAN BEING STRAPPED TO A LIE DETECTOR HE PASSES READYTODRINK ICED TEA HAS CHANGED SAYS JUDE HAMMERLE SNAPPLE'S VICE PRESIDENT OF ADVERTISING AND PROMOTION A FEW YEARS AGO YOU HAD TO BE REALLY THIRSTY TO DRINK IT BECAUSE THE TASTE WAS SO FUNNY NOW THAT THE COMPETITION IS HEATING UP WE HAVE TO DIFFERENTIATE OURSELVES FROM THE CLUTTER WITH ADS THAT PEOPLE WILL REMEMBER THE AD CAMPAIGN FOR THE COCACOLA NESTLE REFRESHMENT ALLIANCE ALSO BORDERS ON THE HUMOROUS AN INDIVIDUAL IS READING AN EYE CHART AND LOOKS THROUGH A BOTTLE OF THE AMBERCOLORED ICED TEA TO EMPHASIZE ITS CLARITY AND LACK OF PRESERVATIVES COCACOLA EXECUTIVES ADMIT HOWEVER THAT AS THE TEMPERATURE DROPS THE CHALLENGE RISES WE HAVE TO TRY AND KEEP UP THE MOMENTUM ONCE SUMMER IS OVER SAYS HERVE CATHELIN VICE PRESIDENT OF MARKETING FOR THE COKENESTLE VENTURE TO THAT END NESTEA IS HANDING OUT SAMPLES IN STORES AND OUTDOORS BUT CHANGE THE ADVERTISEMENTS MR CATHELIN SAYS NO WE EMPHASIZE TASTE IN OUR ADS HE GOES ON SO THE COMMERCIALS ARE GOING TO STAY THE WAY THEY ARE STAY THE WAY THEY ARE INCLUDING OF COURSE THAT 22YEAROLD PLUNGE ONE HOPES THE POOL DOESN'T FREEZE IN THE WINTER INTERPUBLIC GROUP'S LINTAS WHICH IS FEVERISHLY TRYING TO SELL CLIENT COCACOLA CO ON AN AD CAMPAIGN FOR DIET COKE TO REPLACE THE ILLFATED TASTE IT ALL EFFORT HIRED A NEW CREATIVE GUN TO HEAD THE EFFORT LINTAS NAMED RODD MARTIN EXECUTIVE VICE PRESIDENT AND GROUP CREATIVE DIRECTOR ON THE ESTIMATED 60 MILLION DIET COKE ACCOUNT REPORTING TO TONY DEGREGORIO CHIEF CREATIVE OFFICER OF THE AGENCY'S NEW YORK OFFICE MR MARTIN COULDN'T BE REACHED FOR COMMENT LINTAS OFFICIALS WEREN'T AVAILABLE FOR COMMENT MR MARTIN 34 YEARS OLD HAD BEEN CREATIVE DIRECTOR AND A COFOUNDER OF THE MARTIN DAVIS OMON & PARTNERS THE NEW YORK OPERATION OF THE AUSTRALIAN AGENCY OMON HIS DEPARTURE FROM MARTIN DAVIS OMON COMES AFTER AGENCY EXECUTIVES TOOK THE SHOP'S BIGGEST ACCOUNT TOYOTA MOTOR SALES USA'S CORPORATE ADVERTISING WITH THEM TO START A NEW SHOP OASIS INTERNATIONAL GROUP JOANNE DAVIS PRESIDENT OF MARTIN DAVIS OMON DECLINED TO COMMENT REVIEW WHITE CASTLE SYSTEM INC COLUMBUS OHIO IS REVIEWING AGENCIES FOR ITS ESTIMATED 15 MILLION TO 20 MILLION AD ACCOUNT FORMERLY HANDLED BY TINY GUNDER & ASSOCIATES OF DUBLIN OHIO OFFICIALS AT THE CLOSELY HELD FASTFOOD CHAIN COULDN'T BE REACHED FOR COMMENT JEFF COX THE CLEVELAND CONSULTANT CONDUCTING THE SEARCH SAID WHITE CASTLE IS LOOKING FOR A MIDWEST SHOP AND SIZE IS OF SOME RELEVANCE A DECISION IS EXPECTED IN OCTOBER WHO'S NEWS BURSONMARSTELLER THE PUBLIC RELATIONS UNIT OF YOUNG & RUBICAM NAMED PIERRE SALINGER A VICE CHAIRMAN MR SALINGER WHO RETIRED EARLIER THIS YEAR AS CHIEF FOREIGN CORRESPONDENT WITH THE NEWS DIVISION OF THE ABC NETWORK REMAINS A CONSULTANT TO ABC NEWS A UNIT OF CAPITAL CITIES/ABC INC 9308170067 930817 ECONOMY INDUSTRIAL OUTPUT INCREASED 04 IN JULY FROM JUNE BY ELIOT MORGAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON INDUSTRIAL PRODUCTION INCREASED IN JULY SUGGESTING THAT THE LETHARGIC MANUFACTURING SECTOR IS SHOWING SIGNS OF GROWTH PRODUCTION AT THE NATION'S FACTORIES MINES AND UTILITIES ROSE 04 LAST MONTH ACCORDING TO THE FEDERAL RESERVE THE RISE WOULD HAVE BEEN EVEN GREATER IF NOT FOR A 65 DROP IN AUTO PRODUCTION EXCLUDING MOTOR VEHICLES AND PARTS INDUSTRIAL PRODUCTION CLIMBED 06 LAST MONTH JULY'S INCREASE IN OUTPUT COMES ON THE HEELS OF DECLINES OF 02 AND 01 IN MAY AND JUNE RESPECTIVELY ANALYSTS SAID WHILE THE INCREASE LAST MONTH WAS ENCOURAGING IT STILL SUGGESTS THAT THE INDUSTRIAL SECTOR IS WEAK UNDER NORMAL CIRCUMSTANCES 04 WOULD BE SATISFACTORY BUT COMING OFF A WEAK JUNE IT'S TOO SLOW SAID DONALD RATAJCZAK DIRECTOR OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY THE OUTPUT OF AUTOMOBILES AND LIGHT TRUCKS DECLINED FOR THE THIRD STRAIGHT MONTH ECONOMISTS HAVE ATTRIBUTED THE MOST RECENT DECLINES TO EARLY MODEL CHANGEOVERS AND EXPECT A MORE VIGOROUS THIRDQUARTER SHOWING FOR THE INDUSTRY THE SLACK OF THE AUTOMOBILE INDUSTRY WAS PICKED UP BY UTILITIES' INCREASED OUTPUT OUTPUT BY UTILITIES SURGED 33 AFTER A 15 GAIN IN JUNE MAINLY BECAUSE OF UNUSUALLY HOT WEATHER THAT CAUSED CONSUMERS TO KEEP THEIR AIR CONDITIONERS RUNNING FOR LONG PERIODS MANUFACTURING OUTPUT INCREASED 02 AFTER FALLING IN JUNE PRODUCTION OF NONDURABLE GOODS WHICH ARE THOSE INTENDED TO LAST LESS THAN THREE YEARS WAS UNCHANGED DURABLE MANUFACTURING ROSE WITH THE GREATEST GAINS IN MACHINERY AND LUMBER INDUSTRIES PRODUCTION OF CONSUMER GOODS BUSINESS EQUIPMENT AND MATERIALS ALL ROSE IN JULY AFTER DROPPING IN JUNE ANALYSTS SAID THE 13 JUMP IN INFORMATIONPROCESSING EQUIPMENT SUGGESTS THAT COMPANIES ARE CONTINUING THEIR HIGHTECH SPENDING BINGE TO HELP INCREASE EFFICIENCY CONSTRUCTIONSUPPLY OUTPUT ALSO INCREASED FOR THE SECOND STRAIGHT MONTH ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE IS A SUMMARY OF THE FEDERAL RESERVE BOARD'S REPORT ON INDUSTRIAL PRODUCTION IN JULY THE FIGURES ARE SEASONALLY ADJUSTED THE INDUSTRIAL PRODUCTION INDEX FOR JULY STOOD AT 1106 OF THE 1987 AVERAGE 9308170066 930817 WHO'S NEWS LOEWEN GROUP INC LOEWEN GROUP INC VANCOUVER BRITISH COLUMBIA THIS FUNERALSERVICES COMPANY NAMED TIMOTHY R HOGENKAMP 47 YEARS OLD AS PRESIDENT AND CHIEF OPERATING OFFICER BRUCE WATSON 45 TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT AND ROBERT GARNETT 44 AS SENIOR VICE PRESIDENT FINANCE AND COPORATE TREASURER MR HOGENKAMP WAS VICE PRESIDENT OPERATIONS AS PRESIDENT HE SUCCEEDS RAY LOEWEN 52 WHO REMAINS LOEWEN'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR WATSON WAS A PARTNER WITH ACCOUNTING FIRM PEAT MARWICK THORNE MR GARNETT SUCCEEDS ROBERT LUNDGREN 48 WHO REMAINS ON LOEWEN'S BOARD THE COMPANY SAID MR GARNETT WAS ITS VICE PRESIDENT FINANCE AND THAT MR LUNDGREN IS RETIRING TO TAKE AN ACTIVE ROLE IN CHRISTIAN MINISTRY 9308170065 930817 BUSINESS BRIEF INTERNATIONAL SEMITECH UNDERWRITERS BOOST PRICE OF PROPOSED SHARE ISSUE 6 A PROPOSED ISSUE OF SHARES OF INTERNATIONAL SEMITECH MICROELECTRONICS INC WAS BOOSTED 6 TO 795 MILLION CANADIAN DOLLARS US6053 MILLION FROM A REPORTED C750 MILLION SECURITIES INDUSTRY SOURCES SAID THEY SAID UNDERWRITERS AGREED TO PRICE 424 MILLION CLASS A SUBORDINATE VOTING SHARES AT C1875 WHICH IS ABOUT WHAT THE MARKET HAD EXPECTED THERE ARE ABOUT 133 MILLION CLASS A SHARES OUTSTANDING THEY CLOSED YESTERDAY AT C19 UP 50 CANADIAN CENTS IN TRADING ON THE TORONTO STOCK EXCHANGE THE PURCHASE PRICE IS TO BE PAID IN INSTALLMENTS C750 AT CLOSING C5625 IN AUGUST 1994 AND C5625 IN AUGUST 1995 INTERNATIONAL SEMITECH IS A HOLDING COMPANY BASED IN MARKHAM ONTARIO 9308170064 930817 HOW A SIMPLE DERIVATIVES DEAL WORKS BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL MANY DERIVATIVES ARE COMPLICATED BUT NOT ALL HERE IS A SIMPLE STRATEGY WITH OBVIOUS BENEFITS AND RISKS USED BY ADVANCED INVESTMENT MANAGEMENT THE PITTSBURGHBASED MONEY MANAGER ARRANGES FOR A PENSIONFUND CLIENT TO SWAP AN INTERESTRATE RETURN FOR A STOCKMARKET RETURN THE ADVANTAGE AIM'S CLIENT BEATS THE S&P 500STOCK INDEX WITHOUT TRADING A SINGLE SHARE OF STOCK HERE'S HOW IT WORKS STEP ONE THIS PAST SPRING AIM TAKES 30 MILLION OF THE CLIENT'S MONEY AND INVESTS IT IN SHORTTERM NOTES WITH YIELDS PEGGED AT A SLIGHT PREMIUM OVER A POPULAR MONEYMARKET RATE THE LONDON INTERBANK OFFERED RATE LIBOR THE NOTES WERE ISSUED BY COMPANIES SUCH AS FORD MOTOR CO SEARS ROEBUCK & CO AND HONEYWELL INC AIM'S CLIENT IS EARNING AN ANNUAL YIELD OF ABOUT 38 ON THE NOTES STEP TWO ON JUNE 18 AIM CALLS UNION BANK OF SWITZERLAND A TRIPLEARATED SWISS BANKING GIANT AIM AND UBS AGREE TO A SWAP AIM'S CLIENT PAYS UBS THE LIBOR RATE PLUS 03 PERCENTAGE POINT EQUAL TO ABOUT 334 A YEAR TODAY UBS PAYS AIM'S CLIENT THE TOTAL RETURN ON THE S&P 500STOCK INDEX BOTH PARTIES AGREE TO SETTLE UP EVERY THREE MONTHS FOR THE NEXT 18 MONTHS UBS BENEFITS TOO IT COULD SIMPLY MATCH ITS S&P LIABILITY WITH AN S&P ASSET ONE EXAMPLE WOULD BE ANOTHER AGREEMENT TO GET AN S&P RETURN FROM A CLIENT WHO DIDN'T WANT THE RISK OF THE STOCK INDEX OVER A SIMILAR PERIOD IN THE AIM TRADE HOWEVER UBS CHOSE ANOTHER TACTIC THE BANK'S TRADING UNIT BOUGHT S&P 500 STOCKINDEX FUTURES AT AN IMPLIED FINANCING COST OF ABOUT 330 THE BANK DECLINES TO DISCLOSE THE EXACT FIGURE BECAUSE UBS'S COSTS WERE UNDER THE 334 LIBORBASED RATE RECEIVED FROM AIM THE BANK MADE A NARROW MARGIN OF 004 OF A PERCENTAGE POINT ON THE HEDGE THE BANK DOES THE TRADES FOR NARROW MARGINS TO KEEP THE DOORS OPEN TO CUSTOMERS SUCH AS AIM MOREOVER UBS CAN DO THESE DEALS OFFBALANCE SHEET SO IT DOESN'T HAVE TO PLEDGE CAPITAL AGAINST THEM FREEING THE CAPITAL TO EARN MONEY ELSEWHERE AND CREATING A KIND OF DOUBLE LEVERAGE FOR THE BANK BECAUSE THESE FUTURES CONTRACTS MATURE EVERY THREE MONTHS UBS HAS ASSUMED THE MARKET RISK OF REESTABLISHING THE HEDGE EVERY QUARTER STEP THREE BECAUSE AIM'S CLIENT IS EARNING MORE THAN THE 334 ON ITS SHORTTERM NOTES THE INVESTMENT MANAGER IN EFFECT CAN PAY UBS THE 334 AND STILL HAVE 046 PERCENTAGE POINT IN EXCESS ANNUAL YIELD LYING ON THE TABLE WHAT DOES AIM DO WITH THAT SURPLUS AIM COMBINES IT WITH THE S&P RETURN SO IF THE BENCHMARK STOCK INDEX EARNS 10 THIS YEAR AIM'S CLIENT WILL HAVE EARNED 1046 BEATING THE AVERAGE THAT'S A FEAT THAT EVEN THE BEST STOCKPICKERS RARELY ACHIEVE CONSISTENTLY WHAT IF THE S&P FALLS 10 AIM'S CLIENT PAYS UBS 3 MILLION TAKING A LOSS JUST AS IF IT HAD OWNED THE STOCKS ALTHOUGH ITS LOSS WOULD BE SLIGHTLY OFFSET BY THE 046 POINT OF EXCESS YIELD IT IS EARNING ON ITS SHORTTERM NOTE PORTFOLIO ALL TOLD FEWER THAN A DOZEN MONEYMANAGEMENT FIRMS RUN 15 BILLION TO 20 BILLION IN PENSION MONEY USING SIMILAR STRATEGIES IN THESE EQUITY SWAPS AND OTHER DERIVATIVES THE PLAYERS ARE CONCERNED ABOUT THE FINANCIAL VIABILITY OF THEIR SECURITIES AND SWAP PARTNERS IF ANY OF THE NOTES HELD BY AIM'S CLIENT DEFAULTED THE CLIENT WOULD STILL HAVE TO PAY UBS OUT OF ITS OWN POCKET AND ITS RETURNS WOULD FALL AND IF UBS DECLARED BANKRUPTCY AIM'S CLIENT WOULD HAVE TO FIGHT WITH CREDITORS FOR ITS S&P RETURN BUT THE HIGH CREDIT RATING OF THE NOTES AND OF UBS ASSURES AIM'S MANAGERS THAT SUCH RISKS ARE REMOTE 9308170062 930817 AT LONG LAST A TRADE PACT TO BE PROUD OF BY MICKEY KANTOR ON FRIDAY THE US MEXICO AND CANADA PUT THE FINAL TOUCHES TO AN AGREEMENT THAT WILL UNLEASH ECONOMIC GROWTH THROUGHOUT THE AMERICAS WHILE RAISING ENVIRONMENTAL AND LABOR STANDARDS IN PARTICULAR THE NORTH AMERICAN FREE TRADE AGREEMENT WILL REFORM A RELATIONSHIP WITH MEXICO THAT HAS BEEN HARMFUL TO US WORKERS FOR TOO LONG FOR DECADES HIGH TARIFF AND NONTARIFF BARRIERS HAVE MEANT THAT US FIRMS WHO WANT TO SELL THEIR PRODUCTS IN MEXICO HAVE HAD TO MOVE THERE TAKING JOBS WITH THEM TARIFFS ON AUTOMOBILES FOR EXAMPLE WERE ONCE 100 CAR MANUFACTURERS HAD TO BUILD PLANTS IN MEXICO TO SELL THERE WITH NAFTA THOSE CARS WILL BE BUILT HERE AND THE PEOPLE WHO BUILD THEM WILL HAVE JOBS FOR DECADES MEXICO HAS LOOKED THE OTHER WAY WHEN COMPANIES POLLUTED OR VIOLATED THE MOST BASIC OF WORKERS' RIGHTS WITH NAFTA NO COUNTRY CAN AVOID ENFORCING ENVIRONMENTAL OR LABOR STANDARDS AS A WAY TO ATTRACT BUSINESS IF THEY DO THEY WILL FACE TRADE SANCTIONS ENVIRONMENTAL PROTECTION WILL IMPROVE AND WORKERS IN BOTH COUNTRIES WILL BE ASSURED FAIR TREATMENT PRESIDENT CLINTON SEES NAFTA AND THE SUPPLEMENTAL AGREEMENTS REACHED ON FRIDAY AS PART OF HIS STRATEGY OF ECONOMIC RENEWAL TRADE IS THE KEY TO TRIGGERING ECONOMIC GROWTH AND CREATING A HIGHWAGE HIGHGROWTH ECONOMY IN THE US NAFTA WILL ELIMINATE TARIFFS AMONG THE THREE NATIONS AND CREATE THE WORLD'S LARGEST MARKET OF 370 MILLION PEOPLE AND 65 TRILLION OF PRODUCTION WE ALREADY KNOW TRADE WITH MEXICO MEANS MORE US JOBS AND INCREASED EXPORTS AFTER MEXICO BEGAN REDUCING TRADE BARRIERS AND OPENING ITS MARKETS IN 1986 EXPORTS FROM THE US TO MEXICO GREW TO 406 BILLION IN 1992 FROM 124 BILLION IN 1986 OUR 57 BILLION TRADE DEFICIT WITH MEXICO IN 1987 WAS TRANSFORMED INTO A 54 BILLION SURPLUS IN 1992 TODAY AN ESTIMATED 700000 JOBS IN THE US ARE SUPPORTED BY EXPORTS TO MEXICO WITH NAFTA WE EXPECT A GAIN OF 200000 JOBS BY 1995 MEXICO IS ALREADY THE SECOND LARGEST MARKET FOR AMERICAN MANUFACTURING PRODUCTS AND THE THIRD LARGEST MARKET FOR US FARM EXPORTS LAST YEAR THE AVERAGE MEXICAN PURCHASED MORE THAN 450 WORTH OF USMADE PRODUCTS BY CONTRAST THE AVERAGE JAPANESE SPENT 385 ON US PRODUCTS DESPITE THE FACT THAT AVERAGE JAPANESE INCOMES ARE MUCH HIGHER THAN MEXICAN INCOMES THE PRESIDENT WAS CONCERNED THAT THERE WERE MAJOR FLAWS IN THE ORIGINAL AGREEMENT IN HIS VIEW IT DID NOT DO ENOUGH TO PROTECT WORKERS' RIGHTS OR THE ENVIRONMENT HE WAS CONCERNED THAT US COMPANIES MIGHT TAKE ADVANTAGE OF LOWER STANDARDS TO MOVE OPERATIONS TO MEXICO NOW WITH THE SUPPLEMENTAL ACCORDS WE FILL THOSE GAPS NAFTA'S ENVIRONMENTAL PROVISIONS ARE A MODEL FOR NEW INTERNATIONAL COOPERATION UNDER THEM NO COUNTRY IN THE AGREEMENT CAN LOWER ITS ENVIRONMENTAL STANDARDS EVER AND IF A COUNTRY DOESN'T GO AFTER ITS POLLUTERS WE WILL SIMILARLY NAFTA'S LABOR PROVISIONS ENSURE THAT NO COUNTRY DENIES ITS CITIZENS BASIC LABOR RIGHTS CHILD LABOR RESTRICTIONS MINIMUM WAGE REQUIREMENTS HEALTH AND SAFETY RULES AND INDUSTRIAL RELATIONS GUIDELINES TO NAME JUST A FEW SPECIFICALLY THE SUPPLEMENTAL AGREEMENTS WILL HELP ENSURE THAT THE ENFORCEMENT OF DOMESTIC ENVIRONMENTAL LAWS AND WORKPLACE STANDARDS AND REQUIREMENTS WILL BE STRENGTHENED THAT NO NATION WILL LOWER LABOR OR ENVIRONMENTAL STANDARDS ONLY RAISE THEM OF COURSE ALL STATES OR PROVINCES CAN ENACT MORE STRINGENT MEASURES THAT THE PROCESS OF CONSULTATION EVALUATION AND DISPUTE SETTLEMENT WILL BE OPEN TO THE PUBLIC THAT SAFEGUARDS PROTECTING AGAINST IMPORT SURGES WILL BE UPGRADED THAT DUE PROCESS RIGHTS WILL BE EXTENDED TO ENVIRONMENTAL AND LABOR MATTERS AND THAT ADMINISTRATIVE REMEDIES OR COURT PROCEDURES WILL BE AVAILABLE TO THE PARTIES INVOLVED THIS PROVISION OF COURSE HELPS TO ENSURE THAT LABOR AND ENVIRONMENTAL STANDARDS WILL BE ENFORCED THAT COMMISSIONS ON LABOR AND THE ENVIRONMENT WILL BE ESTABLISHED TO EVALUATE AND SETTLE DISPUTES THAT ENFORCEMENT PROCEEDINGS WILL HAVE REAL TEETH ENSURING COMPLIANCE THAT MEXICO AND THE US WILL UNDERTAKE JOINT MEASURES TO ADDRESS AND FUND BORDER CLEANUP AND INFRASTRUCTURE DEVELOPMENT THAT COOPERATION ON THE ENVIRONMENT AND LABOR WILL BE ESTABLISHED ALLOWING FOR THE CONTINUAL UPGRADING OF STANDARDS THROUGHOUT NORTH AMERICA WITH ALL THESE PROVISIONS NAFTA SETS A HISTORIC STANDARD FOR OTHER TRADE AGREEMENTS THIS IS THE FIRST TRADE AGREEMENT SPECIFICALLY TO PROTECT WORKERS' RIGHTS AND THE ENVIRONMENT EVERY TRADE AGREEMENT FROM HERE ON OUT WILL HAVE TO ADDRESS THOSE CONCERNS CLEARLY THE STAKES ARE HIGH WITH NAFTA WE GAIN MUCH NEW JOBS HIGHER ENVIRONMENTAL AND LABOR STANDARDS AND A TOUGHER ENFORCEMENT OF THEM BORDER CLEANUP THE ELIMINATION OF HIGH TARIFF AND NONTARIFF BARRIERS AND THUS OF THE INCENTIVES THAT LED MANY COMPANIES TO MOVE TO MEXICO AND GREATER MEXICAN PROSPERITY AND STABILITY IF NAFTA IS REJECTED ALL THAT IS LOST NOW THE HARD WORK BEGINS SOON CONGRESS WILL CONSIDER NAFTA PRESIDENT CLINTON HAS ALWAYS SAID WE MUST HAVE THE COURAGE TO CHANGE THE CHANGE THAT NAFTA WILL BRING WILL BE CHANGE FOR THE BETTER MR KANTOR IS US TRADE REPRESENTATIVE 9308170061 930817 AIRLINES A CLOSEUP LOOK LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY ROBERT L ROSE JOBS SHIFTS GAIN MOMENTUM AS AIRLINES TRIM COSTS AND RAISE CASH UNITED AIRLINES STUDIES TRANSFERRING SHORTER ROUTES TO LOWERCOST CARRIERS CONTRACTS OUT WORK OF 239 SKYCAPS AND PUTS ITS 17 US FLIGHT KITCHENS ON THE BLOCK SAYING OUTSIDE VENDORS ARE COSTEFFECTIVE THE KITCHENS EMPLOY 5800 PEOPLE MOSTLY MEMBERS OF INTERNATIONAL ASSOCIATION OF MACHINISTS TRANS WORLD AIRLINES SELLS A CABLEPROGRAMMING AFFILIATE AND INTEREST IN A DATA PROCESSING UNIT THE IAM WHICH LOST 5000 MEMBERS IN JULY ALONE DUE TO JOB CUTS IN DEFENSE AND AEROSPACE EXPECTS MORE TURMOIL UNION OFFICIALS WHO RECENTLY VISITED A HUGE AIRCRAFT MAINTENANCE BASE UNDER CONSTRUCTION IN TIJUANA MEXICO FEAR US AIRLINES WILL FLY WORK SOUTH OF THE BORDER OF COURSE IT MEANS LOST JOBS SAYS GEORGE KOURPIAS UNION PRESIDENT MACHINISTS AT NORTHWEST AIRLINES NEGOTIATE CREATION OF AN ADVISORY MANAGEMENTLABOR FARMOUT COMMITTEE TO TRY TO KEEP WORK FROM LEAVING THE CARRIER UNION COALITIONS ARE IN VOGUE AS CARRIERS CUT COSTS AND GO GLOBAL UNITED'S UNIONS INVITED JAPANESE AND CANADIAN COUNTERPARTS TO A COALITION MEETING EARLIER THIS YEAR FLIGHT ATTENDANTS AT NORTHWEST JOIN A COMMITTEE OF EUROPEAN UNIONS TO ADDRESS INTERNATIONAL AIRLINE MERGERS TWA UNIONS IN THE US AND BRITAIN TEAM UP TO LOBBY FOR THE AIRLINE'S BID TO FLY BETWEEN CHICAGO'S O'HARE AND LONDON'S STANSTED AIRPORTS PILOTS MACHINISTS AND FLIGHT ATTENDANTS PLEDGE TO STICK TOGETHER IN CURRENT CONCESSIONSFORSTOCK TALKS AT UNITED BUT MACHINISTS AND TEAMSTERS UNIONS BOLTED FROM A SIXUNION COALITION DURING CRUCIAL NEGOTIATIONS AT NORTHWEST THEY BLAMED PILOTS' INSISTENCE THAT PAY CUTS BE EQUAL IN PERCENTAGE TERMS PRIVATELY MACHINISTS ALSO CHAFED AT GIVING SEATS AT THE TABLE TO THREE TINY UNIONS FLYING LOW FLIGHT ATTENDANTS BATTLE OVER PAY WORK RULES NORTHWEST FLIGHT ATTENDANTS' STARTING PAY IS UNDER 14000 A YEAR THE TEAMSTERS TELL MEMBERS TO CHECK IF THEY QUALIFY FOR EARNED INCOME CREDIT THE TAX BREAK FOR THE WORKING POOR THE ASSOCIATION OF FLIGHT ATTENDANTS SAYS THAT UNTIL RECENTLY STARTING PAY AT NEW YORKBASED TOWER AIR WAS SO LOW THAT FLIGHT ATTENDANTS QUALIFIED FOR FOOD STAMPS AMERICAN AIRLINES' FLIGHT ATTENDANTS WHOSE MEDIAN PAY IS 23007 COMPLAIN THAT THEIR AIRLINE IS NO 1 BUT THEIR PAY IS NO 6 AMONG THE CARRIERS AMERICAN SAYS IT'S WILLING TO OFFER HIGHER PAY BUT NEEDS A BREAK ON COSTLY WORK RULES SUCH AS THE MINIMUM NUMBER OF ATTENDANTS ON PLANES FLIGHT ATTENDANT WEIGHT LIMITS ARE A CONTINUING SOURCE OF FRICTION UNITED RECENTLY RESUMED WEIGHINS AFTER IT WAS UNABLE TO RESOLVE DIFFERENCES WITH UNION WHICH OPPOSES THE STANDARDS JOAN RIVERS GETS A REBUKE FROM THE FLIGHT ATTENDANTS UNION AFTER WORKING AS A USAIR FLIGHT ATTENDANT FOR A DAY SHE PORTRAYED A FLIGHT ATTENDANT ON HER TV TALKSHOW AS DRINKING ON DUTY AND LUGGING A SUITCASE STUFFED WITH AIRLINE PROPERTY A SPOKESWOMAN FOR THE COMEDIAN SAYS IT WAS ALL IN FUN DRUG TESTING IS TOO INTRUSIVE MANAGEMENT AND LABOR AGREE PILOTS AND FLIGHT ATTENDANTS UNIONS SEE RANDOM TESTING AS AN INVASION OF PRIVACY AND THE AIR TRANSPORT ASSOCIATION THE INDUSTRY GROUP URGES THE GOVERNMENT TO CUT THE ANNUAL REQUIRED TESTING RATE FROM THE CURRENT 50 OF EMPLOYEES TO 10 THAT WOULD SLICE THE INDUSTRY'S TESTING COSTS TO 2 MILLION FROM 12 MILLION A YEAR NEVER MIND AFTER VOWING TO SEEK CONSENSUS ON THE NATIONAL COMMISSION STUDYING THE AIRLINE INDUSTRY MACHINISTS' OFFICIAL JOHN PETERPAUL WRITES A 22PAGE DISSENT TO THE PANEL'S FINAL REPORT WHICH IS DUE OUT THURSDAY HE ACCUSES THE COMMISSION OF NOT MAKING HARD CHOICES AND OF FOLLOWING THE LEAD OF THE MAJOR TRADE ASSOCIATIONS THE IAM PLANS TO DISTRIBUTE 5000 COPIES OF THE REMARKS ALL ABOARD LABOR FILLS NEW BOARD SEATS THIS MONTH AT NORTHWEST AND TWA TEAMSTERS NAME AN INTERIM BOARD MEMBER BEFORE PICKING PERMANENT REPRESENTATIVE ON NORTHWEST'S NEWLY EXPANDED BOARD MACHINISTS MAY ALSO GO THAT ROUTE PILOTS ALREADY HAVE CHOSEN ONE OF THEIR OWN UNIONS NAMED THEIR OWN OFFICIALS TO FILL LABOR'S FOUR SEATS AT TWA UNIONS SEEKING MAJORITY CONTROL AT UNITED HAVEN'T SAID HOW MANY SEATS THEY WANT WILLIAM COMPTON OF THE TWA PILOTS PREPARES A REPORT ON HOW TO USE THE AIRLINE'S ASSETS BETTER RANDOLPH BABBITT HEAD OF THE AIR LINE PILOTS ASSOCIATION SAYS PILOT BOARD MEMBERS WILL REPRESENT ALL SHAREHOLDERS BUT TEAMSTERS PRESIDENT RON CAREY HAS DIFFERENT VIEWS FOR HIS FLIGHT ATTENDANTS AT NORTHWEST THE INTERESTS OF THE MEMBERS OBVIOUSLY COME FIRST HE SAYS ASKED IF THE MACHINISTS' CHOICE OF RETIRED UNION CHIEF WILLIAM WINPISINGER FOR TWA BOARD MEANS AN OLD SOCIALIST IS JOINING THE BOARD A FORMER UNION OFFICIAL QUIPS HE'S NOT SO OLD THE CHECKOFF USAIR FLIGHT ATTENDANTS COMPILE A HIT LIST OF HOTELS THAT CHARGE FOR TOLLFREE PHONE CALLS SENSITIVE TO CRITICISM THAT PILOTS ARE ARROGANT AND BOSSY THE HEAD OF TWA'S EMPLOYEE COMMITTEE A PILOT IS DUBBED COORDINATOR 9308170060 930817 DIAL IN TALKS TO BUY DENMAT PHOENIX DIAL CORP A CONSUMER PRODUCTS CONCERN SAID IT IS IN NEGOTIATIONS TO ACQUIRE DENMAT CORP SANTA MARIA CALIF WHICH MAKES REMBRANDT TOOTHPASTE AND RELATED PRODUCTS DIAL AND DENMAT EXECUTED A LETTER OF INTENT TO PROVIDE FOR EXCLUSIVE DISCUSSIONS BETWEEN THE COMPANIES DIAL SAID ANNUAL SALES OF DENMAT ARE ABOUT 75 MILLION 9308170059 930817 INTERNATIONAL US TO PUT SUDAN ON LIST OF TERRORIST COUNTRIES WASHINGTON THE CLINTON ADMINISTRATION IS EXPECTED TO IMPOSE TRADE AND OTHER SANCTIONS ON SUDAN BECAUSE OF ITS SUPPORT OF TERRORISM SECRETARY OF STATE WARREN CHRISTOPHER HAS DECIDED TO PLACE THE NORTH AFRICAN NATION ON THE US TERRORISM LIST AND AN ANNOUNCEMENT IS SET FOR THIS WEEK AFTER CONGRESS IS NOTIFIED COUNTRIES ON THE TERRORISM LIST ARE INELIGIBLE FOR MOST US AID AND ARE BARRED FROM BUYING US MILITARY ITEMS OR GOODS THAT COULD HAVE A MILITARY USE SUCH NATIONS ALSO LOSE CERTAIN TRADE BENEFITS THE ACTION UNDERSCORES GROWING US CONCERN ABOUT LINKS BETWEEN SUDAN AND ISLAMIC FUNDAMENTALIST TERRORIST GROUPS AS WELL AS ITS GROWING CONNECTIONS WITH IRAN THE US ALSO HAS STRONG SUSPICIONS THAT SUDANESE DIPLOMATS AT THE UNITED NATIONS WERE DIRECTLY INVOLVED IN RECENT PLOTS TO COMMIT TERRORIST ACTS IN NEW YORK AN ADMINISTRATION OFFICIAL SAID IN ITS 1992 REPORT PATTERNS OF GLOBAL TERRORISM THE STATE DEPARTMENT SAID THAT THE GOVERNMENT OF SUDAN CONTINUED A DISTURBING PATTERN OF RELATIONSHIPS WITH INTERNATIONAL TERRORIST GROUPS IN ADDITION SEVERAL TRAINING CAMPS FOR ISLAMIC FUNDAMENTALIST GROUPS FROM SUCH NATIONS AS TUNISIA AND ALGERIA AS WELL AS RADICAL PALESTINIAN GROUPS ARE IN SUDAN FOR SUDAN THE PENALTIES WON'T HAVE MUCH PRACTICAL EFFECT AS ITS COMMERCIAL RELATIONS WITH THE US ARE SMALL BUT THE ACTION WILL FURTHER ISOLATE SUDAN'S ISLAMIC REGIME 9308170058 930817 PSI CINCINNATI GAS MODIFY THE TERMS OF MERGER TO COUNTER HIGHER IPALCO BID BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL PSI RESOURCES INC AND CINCINNATI GAS & ELECTRIC CO ADJUSTED TERMS OF THEIR MERGER PLAN CONDITIONALLY BOOSTING BY 125 THE AMOUNT PSI HOLDERS WOULD RECEIVE FOR THEIR STOCK UNDER THE REVISED TERMS PSI HOLDERS WOULD SWAP THEIR SHARES FOR STOCK CURRENTLY VALUED AT 2813 COMPARED WITH THE ABOUT 25 THEY WOULD HAVE RECEIVED UNDER THE EARLIER EXCHANGE RATIO THE NEW TERMS VALUE PSI AT ABOUT 160 BILLION PSI AND CINCINNATI GAS HOLDERS WILL EXCHANGE THEIR SHARES FOR STOCK IN A COMPANY TO BE KNOWN AS CINERGY IPALCO ENTERPRISES INC WHICH IS SEEKING TO DERAIL THE FRIENDLY MERGER WITH ITS OWN HOSTILE BID FOR PSI EARLIER THIS MONTH RAISED ITS CASHANDSTOCK OFFER FOR THE UTILITY TO 28 A SHARE FROM 2650 A SHARE THE IMPROVED TERMS PSI AND CINCINNATI GAS DISCLOSED ARE DESIGNED TO COUNTER IPALCO'S HIGHER BID BUT THEY COME WITH SOME BIG STRINGS ATTACHED THE HIGHER PAYOUT FOR PSI HOLDERS WILL BE NULLIFIED AND THE EARLIER LESSER RATIO WOULD APPLY IF PSI HOLDERS AT AN UPCOMING SHAREHOLDER MEETING REJECT MANAGEMENT NOMINEES IN FAVOR OF A SLATE NOMINATED BY IPALCO FIVE OF 14 PSI BOARD SEATS ARE UP FOR ELECTION THE MODIFIED TERMS UNDERSCORE HOW IMPORTANT THE UPCOMING PROXY FIGHT IS THE REVISIONS ARE CRAFTED TO PUNISH HOLDERS IF THEY VOTE IN FAVOR OF WHAT A CINCINNATI GAS OFFICIAL CHARACTERIZED AS THE OBSTRUCTIVE STRANGERS FROM IPALCO THE CONDITIONAL INCREASE INDICATES OUR WILLINGNESS TO ADD VALUE ONLY IF WE ARE SUPPORTED BY THE PSI SHAREHOLDERS SAID JACKSON H RANDOLPH CINCINNATI GAS CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT THE COMPLEXITY OF THE REVISED ARRANGEMENT IS IN KEEPING WITH THE LONGRUNNING LITIGIOUS AND SURPRISINGLY SPITEFUL CONTEST THAT'S BEEN WAGED OVER PSI THE CONTESTANTS HAVE CLAIMED THEY COULD GARNER BIG COST SAVINGS FROM A COMBINATION BOTH HAVE QUESTIONED THE OTHERS' VERACITY BOTH HAVE BOASTED THAT THEIR PLAN HAS A BETTER CHANCE OF GETTING REGULATORY CLEARANCE IN MIDDECEMBER PSI AND CINCINNATI GAS ANNOUNCED MERGER PLANS UNDER WHICH PSI HOLDERS WOULD SWAP EACH OF THEIR SHARES FOR 0909 CINERGY SHARE CINCINNATI GAS HOLDERS WOULD EXCHANGE THEIR HOLDINGS FOR CINERGY SHARES ON A ONEFORONE BASIS BECAUSE OF THAT LINK THE TRANSACTION'S VALUE SWINGS ON THE PRICE LEVEL OF CINCINNATI GAS'S SHARES INDIANAPOLISBASED IPALCO MIFFED THAT THE NEARBY INDIANA UTILITY HAD CHOSEN THE OUTOFSTATE COMPANY AS A PARTNER SUBSEQUENTLY LAUNCHED ITS HOSTILE OFFER AMONG OTHER THINGS IT HAS NOMINATED ITS OWN SLATE OF NOMINEES FOR PSI'S BOARD TO CONTEST THE SLATE BACKED BY PSI MANAGEMENT THE PROXY FIGHT WILL CONCLUDE AT THE PSI ANNUAL MEETING SET FOR MONDAY WHILE IT HAD ALREADY MADE THE HIGHER OFFER IPALCO'S INCREASED BID HAD BEEN SEEN AS SUBSTANTIALLY STRENGTHENING ITS CHANCES ASSUMING IT CAN SUCCESSFULLY NAVIGATE THE REGULATORY SHOALS THAT ADVANTAGE APPEARS TO BE DIMINISHED HOWEVER NOW THAT THE AMOUNT OF CINERGY STOCK PSI HOLDERS WOULD RECEIVE FOR EACH OF THEIR SHARES HAS BEEN RAISED TO 1023 SHARES AT THE NEW RATIO PSI HOLDERS WILL RECEIVE STOCK CAPPED AT A MAXIMUM VALUE OF 3069 THE TRANSACTION RETURNS TO THE OLD RATIO IN THE SEEMINGLY UNLIKELY EVENT THAT CINCINNATI GAS SHARES RISE ABOVE 3376 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY PSI SHARES CLOSED UP 125 CENTS AT 2525 AND CINCINNATI GAS WAS UP 125 CENTS TO 2750 IPALCO SHARES SLIPPED 125 CENTS TO 36375 PSI'S CHAIRMAN CHIEF EXECUTIVE AND PRESIDENT JAMES E ROGERS SAID THE REVISED DEAL INDISPUTABLY GIVES PSI HOLDERS SUPERIOR VALUE OVER THE IPALCO PROPOSAL IN THE LATEST UNSUBTLE THRUST OF A HARDFOUGHT PUBLICITY CAMPAIGN HE ADDED THAT IF PSI HOLDERS ELECT IPALCO'S NOMINEES AND THE MERGER WITH CINCINNATI GAS IS BLOCKED PSI HOLDERS WILL BE LEFT WITH NOTHING BUT IPALCO'S EMPTY PROMISES PSI'S BOARD ALSO YESTERDAY VOTED TO URGE HOLDERS TO REJECT IPALCO'S RECENTLY INCREASED BID CALLING IT DECEPTIVE MISLEADING AND ILLUSORY 9308170057 930817 YOUR MONEY MATTERS INVESTMENT DARTBOARD PROS THOROUGHLY TROUNCE DART THROWERS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL INVESTMENT PROFESSIONALS HAVE JUST SCORED THEIR BIGGEST VICTORY IN THE HISTORY OF THIS COLUMN'S STOCKPICKING CONTEST LED BY MICHAEL METZ CHIEF INVESTMENT STRATEGIST FOR OPPENHEIMER & CO THE FOUR PROS IN THE LATEST SIXMONTH CONTEST CHALKED UP AN AVERAGE GAIN OF 291 TROUNCING A DARTBOARD PORTFOLIO CHOSEN BY A RANDOM HEAVE OF DARTS AT THE STOCK LISTINGS MR METZ'S PICK HOMESTAKE MINING SOARED A REMARKABLE 80 FROM FEB 9 THROUGH JULY 31 THE DOW JONES INDUSTRIAL AVERAGE DRIFTED ALONG RISING 37 BUT THE DARTBOARD PORTFOLIO REALLY TANKED FALLING 43 AS CUSTOMARY THE PROS WHO EXCELLED IN THE LATEST CONTEST WERE INVITED TO MAKE NEW PICKS MR METZ SAYS HE STILL LIKES HOMESTAKE AND OTHER GOLD STOCKS BUT HE LOOKS IN A DIFFERENT DIRECTION FOR HIS NEW SELECTION PHILIP MORRIS COS THE NEW YORK TOBACCO AND FOOD GIANT PHILIP MORRIS'S SHARES PLUNGED THIS YEAR AFTER THE COMPANY SLASHED THE PRICE ON ITS FLAGSHIP MARLBORO CIGARETTE BRAND THE STOCK WAS TRADING AT 4650 A SHARE YESTERDAY AT THAT PRICE IT IS SELLING FOR A MERE NINE TIMES THE PAST FOUR QUARTERS' PERSHARE EARNINGS AND OFFERS A 55 DIVIDEND YIELD PHILIP MORRIS IS NOT A GROWTH COMPANY SAYS MR METZ BUT IT IS A NATURAL CANDIDATE FOR RESTRUCTURING OR RECAPITALIZATION ONE POSSIBILITY HE SAYS IS THAT PHILIP MORRIS WILL BREAK INTO THREE PARTS FOOD DOMESTIC TOBACCO AND INTERNATIONAL TOBACCO IF THEY'RE REALLY CLEVER MR METZ SAYS THEY'LL PUT ALL THE DEBT INTO THE DOMESTIC TOBACCO IT'S GOING TO GET A LOW VALUATION ANYWAY SUCH A BREAKUP HE SAYS WOULD ALLOW A MORE GENEROUS VALUATION FOR THE OTHER PARTS ANOTHER TACTIC PHILIP MORRIS COULD TAKE HE SAYS IS TO MAKE A TENDER OFFER TO BUY A BIG CHUNK OF ITS SHARES FROM INVESTORS AT TODAY'S LOW STOCK PRICE HE THINKS THAT WOULD BE A GOOD MOVE HIS GUESS IS THAT IN SUCH A TENDER PHILIP MORRIS MIGHT OFFER INVESTORS 60 OR SO A SHARE NED RILEY CHIEF INVESTMENT OFFICER OF BANK OF BOSTON'S PRIVATE BANKING GROUP CAME IN SECOND IN THE LATEST ROUND OF THE INVESTMENT DARTBOARD CONTEST WITH A GAIN OF 259 IN PIONEER ELECTRONIC CORP OF JAPAN HIS NEW PICK IS MERCK & CO THE PRESTIGIOUS BUT BATTERED DRUG COMPANY FROM WHITEHOUSE STATION NJ MERCK HAS BEEN OUT OF FAVOR FOR A YEAR AND A HALF MR RILEY SAYS INVESTORS QUAKE AT THE PROSPECT OF DRUG COMPANIES LOSING THEIR PRICING POWER THEY TREMBLE IN FEAR OF WHAT GOVERNMENT REGULATIONS PRESIDENT CLINTON MAY BRING ON AND THEY THINK MERCK OVERPAID IN SHELLING OUT 6 BILLION TO ACQUIRE MEDCO CONTAINMENT SERVICES INC BUT MR RILEY DISAGREES MEDCO WILL ALLOW MERCK TO OFFER ONESTOP SHOPPING FOR PRESCRIPTION DRUGS ALBEIT AT A LOWER PRICE STRUCTURE HE SAYS HE LIKES THE FACT THAT MERCK GETS 45 OF ITS SALES OVERSEAS THINKS THE PLANNED TRIMMING OF ITS WORK FORCE BY 2100 PEOPLE WILL SAVE A LOT OF MONEY AND RESPECTS MERCK'S NEWDRUG PIPELINE PERHAPS MOST IMPORTANT MR RILEY THINKS MERCK STOCK HAS FALLEN TOO LOW TO RESIST THE SHARES TRADED AT 2950 YESTERDAY AS RECENTLY AS JANUARY 1992 THEY FETCHED 56 A SHARE JOINING THE CONTESTANTS' RANKS ARE AL FRANK AND EDWARD C TED RORER MR FRANK EDITS THE PRUDENT SPECULATOR A STOCKMARKET NEWSLETTER IN SANTA MONICA CALIF AND HEADS AL FRANK ASSET MANAGEMENT MR RORER IS FOUNDER AND CHIEF INVESTMENT OFFICER AT RORER ASSET MANAGEMENT IN PHILADELPHIA MR FRANK LIKES SOFTWARE PUBLISHING CORP OF SANTA CLARA CALIF WHICH PRODUCES BUSINESSPRESENTATION SOFTWARE SOLD UNDER THE HARVARD GRAPHICS NAME THE COMPANY HAS SEEN ITS SHARES PLUNGE TO THEIR LOWEST LEVEL IN SIX YEARS AFTER POSTING A 49CENTASHARE LOSS IN THE JUNE QUARTER MR FRANK NOTES BUT HE THINKS SOFTWARE PUBLISHING'S PROBLEMS SUCH AS WEAKNESS IN EUROPE AND HEAVY EXPENDITURES TO PREPARE FOR LAUNCHING A NEW VERSION OF HARVARD GRAPHICS THAT RUNS ON MICROSOFT'S WINDOWS SYSTEM ARE TEMPORARY BY THE END OF THE CURRENT QUARTER HE THINKS THE COMPANY WILL BE BACK IN THE BLACK AND HE SPECULATES THE COMPANY COULD RETURN TO ITS HISTORIC PROFIT GROWTH RATE OF ABOUT 15 A YEAR ALL IN ALL MR FRANK THINKS SOFTWARE PUBLISHING STOCK WHICH TRADED OVER THE COUNTER YESTERDAY AT 650 COULD HIT 14 WITHIN THREE YEARS HE WOULD BUY THE STOCK AT ANY PRICE UP TO 7125 A SHARE MR RORER FAVORS SANTA FE PACIFIC CORP THE RAILROAD COMPANY BASED IN SCHAUMBURG ILL HAS ALREADY SPUN OFF ITS ENERGY AND REALESTATE DIVISIONS AS SEPARATE COMPANIES SOMETIME IN THE NEXT SIX MONTHS WE ANTICIPATE THIS COMPANY WILL SPIN OFF ITS MINERALS DIVISION MR RORER SAYS SANTA FE MINERALS RECENTLY SWAPPED ITS COAL PROPERTIES FOR HANSON PLC'S GOLD PROPERTIES THE SWAP LEAVES SANTA FE WITH ABOUT 10 MILLION OUNCES OF GOLD IN THE GROUND AND SOME OF THE LOWEST PRODUCTION COSTS IN THE GOLDMINING INDUSTRY MR RORER SAYS BY HIS ESTIMATE THE GOLD HOLDINGS ARE WORTH 10 TO 12 A SHARE SANTA FE PACIFIC STOCK TRADED YESTERDAY AT 1750 A SHARE SO MR RORER FIGURES HE IS PAYING LESS THAN 8 A SHARE FOR THE RAILROAD HE CONSIDERS THAT A BARGAIN SINCE SANTA FE'S DEBT IS WAY DOWN IN THE PAST FOUR YEARS AND HE THINKS THE RAILROAD ON ITS OWN CAN EARN 1 A SHARE IN 1994 FOR THE NEXT CONTEST WHICH RUNS THROUGH JANUARY 1994 THE PROS' PICKS WILL VIE AGAINST A DARTBOARD PORTFOLIO CONSISTING OF CAPITOL AMERICAN FINANCIAL CORP CAF GENERAL ELECTRIC CO GE ICH CORP ICH AND LAKE SHORE BANCORP LSNB SERVICES/TRADELINE UP 31 CARE NETWORK DOWN 375 STAODYN DOWN 513 LAFAYETTE AMERICAN BANCORP DOWN 864 9308170056 930817 BUSINESS BRIEF ALLIED RESEARCH CORP SHARES SURGE 27 ON PACT FOR PURCHASE BY FIRST ALLIED ALLIED RESEARCH CORP'S SHARES JUMPED 27 ON NEWS THAT IT SIGNED A DEFINITIVE AGREEMENT FOR IT TO BE ACQUIRED BY CLOSELY HELD FIRST ALLIED CORP FOR ABOUT 874 MILLION ALLIED RESEARCH A VIENNA VA PRODUCER OF AMMUNITION SYSTEMS AND SUPPLIER OF ENGINEERING SERVICES TO DEFENSE DEPARTMENTS AND INDUSTRY SAID FIRST ALLIED SWEETENED ITS OFFER TO 19 A SHARE FROM AN EARLIER 1650 ALLIED RESEARCH HAS ABOUT 46 MILLION SHARES OUTSTANDING ALLIED RESEARCH'S SHARES CLOSED AT 16875 UP 3625 IN COMPOSITE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE FIRST ALLIED A ROCHESTER NY INVESTMENT FIRM LED BY FLORIDA BUSINESSMAN MALCOLM GLAZER HAD MADE AN UNSOLICITED OFFER OF 1650 A SHARE IN APRIL THE GLAZER FAMILY ALREADY OWNS ABOUT 9 OF ALLIED RESEARCH'S SHARES OUTSTANDING ALLIED RESEARCH WHICH EARNED 18 MILLION OR 399 A SHARE ON REVENUE OF 217 MILLION IN 1992 EXPECTS TO POST REVENUE OF 150 MILLION TO 160 MILLION IN 1993 ORDERS ARE DOWN PARTLY AFFECTED BY REDUCTIONS IN DEMAND FOR MUNITIONS A SPOKESMAN SAID 9308170054 930817 HEALTH WEST VIRGINIA'S FOCUS ON PREVENTIVE CARE OFFERS MODEL FOR RURAL AREAS INNER CITIES BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL PREGNANT 18 AND LIVING ALONE IN RURAL WEST VIRGINIA STEPHANIE O'BRIEN PROBABLY MISSED CONTRIBUTING TO THE STATE'S INFANT MORTALITY RATE BY ABOUT 10 YEARS IT WAS 30 HIGHER AND MERCILESS IN TAKING THE INFANTS OF WOMEN LIKE MS O'BRIEN BACK THEN WEST VIRGINIA HADN'T YET FOCUSED ON THE ONE REMEDY THAT COULD HELP A STATE WHOSE TOUGHEST MEDICAL CHALLENGE WAS FINDING ISOLATED RESIDENTS WHO NEEDED TREATMENT BEFORE TRAGEDY STRUCK PREVENTIVE CARE SAYS HER PHYSICIAN RICHARD TRENBATH IT'S HOW THIS STATE WILL SURVIVE WHEN I SEE A PERSON NOW I AUTOMATICALLY THINK HEALTH MAINTENANCE THE MESSAGE RESONATES NATIONWIDE ESPECIALLY IN POOR RURAL AND INNERCITY AREAS BELEAGUERED BY MEDICAL PROBLEMS AND DOCTOR SHORTAGES THERE PATIENTS WITH MEAGER INSURANCE OR NONE AT ALL CAN'T AFFORD TO SKIMP ON PREVENTIVE CARE AND WAIT UNTIL A CRITICAL ILLNESS STRIKES WE DO A BETTER JOB OF PREVENTIVE MAINTENANCE ON OUR CARS THAN OURSELVES SAYS DONALD WEAVER DIRECTOR OF THE NATIONAL HEALTH SERVICE CORPS THE CORPS IS A DOCTOR LIFELINE FOR RURAL AND INNERCITY AREAS PROVIDING FEDERAL LOANS AND SCHOLARSHIPS TO PHYSICIANS WHO PRACTICE THERE WHEN YOU LOOK AT WEST VIRGINIA HE SAYS IT ONLY REEMPHASIZES WHAT WE NEED TO DO NATIONWIDE INDEED WEST VIRGINIA'S 18 MILLION RESIDENTS HAVE RANKED LAST IN HEALTHY LIVING FOR MOST OF THE PAST DECADE RISING TO 40 ONLY IN THE LAST FIVE YEARS THE STATE LEADS THE NATION IN SMOKELESS TOBACCO CONSUMPTION OBESITY AND POOR NUTRITION ALL FACTORS THAT ERODE HEALTH THE DANGERS ARE COMPOUNDED BY THE MOUNTAINOUS GEOGRAPHY WHICH OFTEN SEPARATES WEST VIRGINIANS FROM THEIR PHYSICIANS OF WHOM THERE'S A SHORTAGE IN 80 OF THE COUNTIES BUT IN THE LAST DECADE AND WITH FEDERAL HELP THE STATE HAS CHANNELED ITS HEALTH DOLLARS INTO PREVENTIVE CARE UNDERTAKING PROGRAMS DESIGNED TO DO EVERYTHING FROM IMPROVING NUTRITION IN SCHOOL LUNCHES TO PROVIDING FREE CANCER SCREENING FOR THE MOST ISOLATED RESIDENTS IT ALSO HAS ALLOCATED 6 MILLION TO HELP THE STATE'S THREE MEDICAL SCHOOLS SEND STUDENTS INTO RURAL CLINICS FOR SEVERAL MONTHS OF TRAINING EACH YEAR THE RESULTS SO FAR ARE NOTEWORTHY WEST VIRGINIA'S INFANT MORTALITY RATE HAS DROPPED BY NEARLY A THIRD SINCE 1982 AND ITS CERVICAL CANCER DEATH RATE HAS DECLINED 30 CATCHING UP TO A NATIONWIDE TREND HEART DISEASE DEATHS FOR THE STATE'S RAPIDLY AGING POPULATION HAVE DROPPED 20 PARTLY DUE TO NATIONAL AND STATE CAMPAIGNS ABOUT CHOLESTEROL AND HIGH BLOOD PRESSURE SIMULTANEOUSLY WEST VIRGINIA HAS MOUNTED A 48 MILLION CRUSADE AGAINST SMOKELESS TOBACCO GUARANTEED EVERY NEEDY CHILD BASIC PREVENTIVE HEALTH CARE PROVIDED NEARLY 25000 FREE MAMMOGRAMS AND PAP SMEARS AND BACKED HEALTH COUNSELING AND PRENATAL PROGRAMS AT CLINICS TREATING WOMEN LIKE MS O'BRIEN I DON'T KNOW WHAT KIND OF CARE I WOULD GET WITHOUT THESE PROGRAMS SHE SAYS AS SHE WAITS FOR DR TRENBATH IN THE CAMDEN ON GAULY HEALTH CLINIC FOR TWO MONTHS AFTER DISCOVERING SHE WAS PREGNANT MS O'BRIEN DIDN'T SEE A DOCTOR BECAUSE SHE HAD NEITHER INSURANCE NOR MONEY FOR TRANSPORTATION THEN SHE MET BETH TANNER THE CLINIC'S PRENATAL DIRECTOR WHO ROUTINELY VISITS SCHOOLS TO TRACK DOWN TEENAGERS LIKE MS O'BRIEN MS TANNER LINKED HER UP WITH A FOURYEAROLD FEDERALLY FUNDED PROGRAM CALLED RIGHT FROM THE START WHICH PROVIDES PRENATAL CARE TO 9500 HIGHRISK WEST VIRGINIA WOMEN YEARLY TODAY MORE THAN 75 OF THE STATE'S PREGNANT WOMEN ARE TREATED IN THEIR FIRST TRIMESTER AND TRACKED FOR PROBLEMS SUCH AS DRUG AND ALCOHOL USE DIABETES AND HIGH BLOOD PRESSURE THE COST OF THE PREVENTION PALES NEXT TO THE 1 MILLION IT CAN COST TO CARE FOR ONE PREMATURE INFANT SOME OF THESE WOMEN ARE LIVING WITHOUT RUNNING WATER MS TANNER SAYS SEVEN MONTHS LATER IN MIDJULY MS O'BRIEN SAFELY DELIVERED A HEALTHY DAUGHTER BRIANNA DAWN EIGHT POUNDS SIX OUNCES DOCTORS HAD DETECTED AND TREATED MS O'BRIEN'S POTENTIALLY DANGEROUS ANEMIA EARLY AND CONSISTENTLY AS THE STATE REIMBURSED HER FOR 38 MILES OF TRAVEL FOR EACH VISIT MEANWHILE SHE GRADUATED FROM HIGH SCHOOL AND PUT HER DREAMS OF JOINING THE AIR FORCE ON A BACK BURNER FINDING MS O'BRIEN WAS KEY ANY PREVENTIVE PROGRAM WILL FAIL UNLESS PEOPLE USE IT FOR MANY COMMUNITIES SUCH AS CAMDEN ON GAULY THE BEST DETECTIVES ARE RESIDENTS THEMSELVES WORKING THROUGH THE CLINIC LOCAL WOMEN HAVE FORMED A MATERNAL OUTREACH PROGRAM SOMETIMES FAMILIES THEMSELVES DO THE JOB THE WOMEN TEND TO BE THE ONES WHO DRAG THE MEN IN ASKING US QUIETLY TO DROP BY THE HOUSE AND TAKE A LOOK AT A GROWTH ON THEIR HUSBAND'S LIP DR TRENBATH SAYS BUT MOST DOCTORS AGREE THERE'S NO BETTER LOCATER THAN THE SCHOOLS WHERE POOR HABITS CAN BE ALTERED AT AN EARLY AGE LAST YEAR THE STATE BEGAN ENFORCING ONE OF THE NATION'S STRICTEST LOWFAT HIGHFIBER SCHOOL LUNCH DIETS AND EVEN IN THE TINIEST COMMUNITIES LOCAL SHERIFFS AND DOCTORS ATTEND CLASSES TO WARN ABOUT THE DANGERS OF DRUGS ALCOHOL AND CHEWING TOBACCO DENTIST DAN BRODY DIVIDES HIS TIME BETWEEN CLINICS IN FORT GAY AND HARTS NEAR THE KENTUCKY BORDER HE REGULARLY SHOWS YOUNG MEN THE MOST FREQUENT USERS OF CHEWING TOBACCO SHOCK PICTURES OF FACES DISFIGURED FROM ORAL CANCER WARNS THAT EVEN CHEWING TOBACCO CAUSES HEART DISEASE AND TELLS THEM GIRLS DON'T LIKE GUYS WITH BROWN TEETH BAD BREATH AND BAD TASTES IN THEIR MOUTH DESPITE THE ODDS PROGRESS IS EVIDENT SMOKELESS TOBACCO USE DROPPED 12 FROM 1986 TO 1991 THEN IN 1991 WEST VIRGINIA WAS ONE OF 17 STATES SELECTED FOR THE AMERICAN STOP SMOKING INITIATIVE STUDY WHICH WILL SEND 48 MILLION TO THE STATE FOR PREVENTION DENTAL BATTLES DON'T END WITH TOBACCO RURAL STATES LIKE WEST VIRGINIA ARE FREQUENTLY DEPENDENT ON WELL OR CISTERN WATER WHICH IS NONFLUORIDATED A SERIOUS DETRIMENT FOR DEVELOPING TEETH BUT THE STATE NOW PROVIDES FLUORIDE PILLS OR DROPS TO ABOUT 10000 CHILDREN FREE OF CHARGE IF THEIR WATER ISN'T PROPERLY FLUORIDATED FOR ADULTS THOUGH GOOD PREVENTIVE CARE CAN'T COME IN A BOTTLE ESPECIALLY IF THEY'RE DEPENDENT ON MEDICAID WHICH HAS INCONSISTENTLY FUNDED DENTAL CARE THROUGHOUT THE LAST DECADE YOU'VE GOTTA CONVINCE PEOPLE AROUND HERE THAT THEIR TEETH CAN BE SAVED IF THEY'LL JUST TAKE A LITTLE CARE OF THEM SAYS MIKE HYUN WHO WORKS ALONGSIDE DR BRODY BOTH DENTISTS AS WELL AS DR TRENBATH CAME TO THE COMMUNITY THROUGH THE NATIONAL HEALTH CARE SERVICE CORPS WHILE THE CORPS HAS RAISED THE NUMBER OF PHYSICIANS HERE SHORTAGES PERSIST A REMINDER THAT WEST VIRGINIA'S HEALTH DILEMMA ISN'T SOLVED ALREADY THE STATE'S MALPRACTICE PAID CLAIMS RATE IS THE NATION'S THIRD HIGHEST AND THE STATE JUST PASSED A 2 TAX ON THE GROSS EARNINGS OF HEALTHCARE PROVIDERS THAT MAY DRIVE DOCTORS ELSEWHERE MOREOVER THERE ARE DRAWBACKS TO THE PREVENTIVE PROGRAMS THEMSELVES CONTENDS DUDLEY CRAWFORD A CORPS GRADUATE SERVING HIS TIME IN SOUTHERN UNION OFTEN THE PROGRAMS PROVIDE FUNDING TO DETECT A PROBLEM BUT NOT TO CURE IT HE SAYS IF YOU FIND THE PROBLEM BUT CAN'T COME UP WITH THE FINANCIAL RESOURCES TO CURE IT THEN WHERE DOES THAT LEAVE THE PATIENT HE ALSO BELIEVES THAT DOCTORS PUSHING PREVENTIVE CARE HAVE TO RECOGNIZE THE PREVALENCE OF DEPRESSION HERE THIS IS AN IDYLLIC SETTING WITH NO REAL JOBS FOR THE KIDS DR CRAWFORD SAYS PEOPLE GET TRAPPED AND THEY SOMETIMES TRANSFER THAT INTO A MEDICAL PROBLEM AS A DOCTOR IN WEST VIRGINIA YOU'VE GOT TO REALLY BE ABLE TO LISTEN THAT'S PART OF THE CARE DR ROBERT D'ALESSANDRI DEAN OF WEST VIRGINIA UNIVERSITY'S SCHOOL OF MEDICINE STRESSES THAT STATE HEALTH PROGRAMS CAN SUCCEED ONLY IF RESIDENTS RESPECT THEIR OWN HEALTH WEST VIRGINIA IS LIKE A FIGHTER WHO GOT KNOCKED DOWN IF HE DOESN'T GET UP ON HIS OWN TWO FEET ON THE COUNT OF TWO HE'S OUT DR D'ALESSANDRI SAYS BUT HE'S GOT TO GET UP ON HIS OWN 9308170053 930817 BUSINESS FRAUD PREVAILS MAY WORSEN STUDY SAYS NEW YORK A STUDY OF US BUSINESSES SUGGESTS THAT FRAUDULENT BUSINESS ACTIVITY IS PREVALENT AND THAT MANY CORPORATE EXECUTIVES THINK IT WILL GET WORSE KPMG PEAT MARWICK AN ACCOUNTING FIRM SURVEYED MORE THAN 300 COMPANIES TRYING TO DETERMINE THE LEVEL OF FRAUD IN US BUSINESS THE STUDY FOUND 75 OF THE FIRMS SURVEYED HAD SUFFERED SOME FORM OF FRAUD IN THE PAST YEAR THE COMPANIES SURVEYED REPORTED LOSSES FROM FRAUD OF MORE THAN 250 MILLION IN THE PAST YEAR THE SURVEY COVERS THE YEAR ENDING ROUGHLY IN MAY 1993 THE FRAUDRICH ENVIRONMENT ISN'T EXPECTED TO IMPROVE MORE THAN TWOTHIRDS OF THOSE POLLED SEE BUSINESS FRAUD WORSENING IN THE NEXT YEAR WHILE ONLY 2 BELIEVE BUSINESS FRAUD WILL EBB ABOUT 80 OF THE BUSINESSES SURVEYED BELIEVE INCREASINGLY HARSH ECONOMIC PRESSURES CREATE AN ATMOSPHERE MORE CONDUCIVE TO FRAUD ABOUT 75 OF THE RESPONDENTS SAID WEAKENING VALUES IN SOCIETY CONTRIBUTED TO FRAUD WHEN ECONOMIC TIMES ARE BAD THINGS SUCH AS FRAUD GET PUSHED TO THE SURFACE SAID MICHAEL CAREY DIRECTOR OF FORENSIC AND INVESTIGATIVE ACCOUNTING FOR KPMG PEAT MARWICK 9308170052 930817 INTERNATIONAL BRIEF SCOTTISH HYDROELECTRIC PLC JOINT VENTURE FORMED WITH USX'S MARATHON UNIT UK ELECTRICITY GENERATOR SCOTTISH HYDROELECTRIC PLC ANNOUNCED THAT IT HAS FORMED A JOINT VENTURE WITH MARATHON GAS OF THE US TO MARKET GAS TO CUSTOMERS THROUGHOUT THE UK COMMENTING ON SCOTTISH HYDROELECTRIC'S ENTRY INTO THE GAS MARKET ITS CHAIRMAN ROGER YOUNG SAID THE MOVE WAS A KEY PART OF ITS DEVELOPMENT AS AN ENERGY COMPANY OPERATING THROUGHOUT EUROPE IN A STATEMENT SCOTTISH HYDROELECTRIC SAID THE 5050 JOINT VENTURE COMPANY WILL BE NAMED VECTOR GAS LTD AND WILL MARKET GAS UNDER THE HE ENERGY BRAND TO COMMERCIAL AND INDUSTRIAL CUSTOMERS WHEN DEREGULATION ALLOWS THE COMPANY ENVISAGES EXTENDING GAS SALES TO THE DOMESTIC MARKET THE COMPANY ADDED WE ALREADY HAVE A NUMBER OF CUSTOMERS IN SCOTLAND TO WHOM DELIVERIES WILL START IN OCTOBER THIS YEAR MR YOUNG SAID MARATHON GAS IS A SUBSIDIARY OF MARATHON OIL COMPANY THE PRINCIPAL ENERGY DIVISION OF USX CORP 9308170051 930817 BUSINESS BRIEF GRAND METROPOLITAN PLC UNIT WINS INDIA'S APPROVAL FOR LIQUOR JOINT VENTURE GRAND METROPOLITAN PLC SAID THE GOVERNMENT OF INDIA GRANTED APPROVAL TO GRAND MET'S INTERNATIONAL DISTILLERS & VINTNERS DRINKS DIVISION TO FORM A JOINT VENTURE IN INDIA TO PRODUCE AND MARKET LIQUOR FOR LOCAL CONSUMPTION AND EXPORT GRAND MET A RETAILING AND FOOD CONCERN BASED IN LONDON SAID IDV WILL HAVE A MAJORITY INTEREST IN THE NEW COMPANY INTERNATIONAL DISTILLERS INDIA WHICH WILL BEGIN OPERATIONS LATER THIS YEAR A GRAND MET SPOKESMAN IN LONDON SAID THE REST OF THE BUSINESS WILL BE OWNED BY A LOCAL PARTNER THE PARTNER HAS ASKED GRAND MET NOT TO REVEAL ITS NAME GRAND MET SAID THE CREATION OF INTERNATIONAL DISTILLERS INDIA WAS THE CULMINATION OF SEVERAL YEARS OF RESEARCH AND WILL TAKE ADVANTAGE OF RECENT FINANCIAL LIBERALIZATION AND ECONOMIC REFORM BY THE INDIAN GOVERNMENT IN LIGHT OF THE REFORMS WHICH ARE MOST ENCOURAGING THE WAY IS NOW CLEAR TO IMPLEMENT OUR INVESTMENT PLAN FOR INDIA JOHN MCGRATH CHIEF EXECUTIVE OF IDV SAID IN A STATEMENT 9308170050 930817 WHAT'S NEWS BUSINESS AND FINANCE AT&T SAID IT WILL ACCELERATE ITS PLANNED PURCHASE OF MCCAW CELLULAR COMMUNICATIONS BUYING THE ENTIRE COMPANY FOR 126 BILLION IN STOCK COMBINING WITH MCCAW THE NATION'S LARGEST CELLULAR PHONE COMPANY ENABLES AT&T TO CEMENT ITS COMMAND OF WORLD TELECOMMUNICATIONS SETTING THE STAGE FOR WORLDWIDE WIRELESS TELEPHONE SERVICES BY THE GLOBAL GIANT NEWS THAT AT&T WILL BUY MCCAW SPURRED BROAD BUYING OF STOCKS ESPECIALLY IN THE OVERTHECOUNTER MARKET WHERE THE NASDAQ COMPOSITE INDEX ROSE 863 POINTS TO A RECORD 72689 THE PRICE OF THE TREASURY'S BENCHMARK 30YEAR ISSUE SOARED ALMOST 5/8 POINT ITS YIELD FELL TO 630 A 16YEAR LOW CONTINENTAL AIRLINES PLANS TO SHRINK CAPACITY BY 10 ELIMINATING 2500 JOBS AND CUTTING SOME ROUTES IN A COSTSAVING MOVE THAT IS REMINISCENT OF RECENT RETRENCHMENTS BY RIVALS AND UNDERSCORES THE INDUSTRYWIDE SLUMP THE US SEEMS UNLIKELY TO ACT TO HALT THE YEN'S SURGE EVEN AS THE JAPANESE CURRENCY APPROACHES THE LEVEL OF 100 YEN TO A DOLLAR THE DOLLAR FELL TO A RECORD 10048 YEN TUESDAY IN TOKYO BUT US OFFICIALS APPARENTLY SEE NO REASON TO BE CONCERNED AS LONG AS CURRENCY MOVEMENTS REMAIN ORDERLY BERKSHIRE HATHAWAY SOUGHT CLEARANCE FROM FEDERAL REGULATORS THAT WOULD ALLOW THE COMPANY WHICH IS CONTROLLED BY INVESTOR WARREN BUFFETT TO LIFT ITS STAKE IN SALOMON TO 2499 REYNOLDS METALS SAID IT PLANS TO CUT CAPACITY BY 9 IN AN EFFORT TO SHRINK THE WORLDWIDE ALUMINUM GLUT THE MOVE AFTER OTHER CUTBACKS BY ALCOA AND SOME OVERSEAS PRODUCERS RAISED THE LIKELIHOOD OF A RECOVERY NATIONAL MEDICAL ENTERPRISES' TOPRANKING FEMALE EXECUTIVE ACCUSED THE COMPANY OF SEXUAL DISCRIMINATION ALLEGING THAT SHE WAS DENIED THE POST OF CEO BECAUSE SHE IS A WOMAN SALARY RAISES ARE EXPECTED TO SHRINK NEXT YEAR THOUGH THEY STILL WILL OUTPACE INFLATION A STUDY SHOWS MATTEL PLANS TO BEGIN DISTRIBUTING MORE THAN 15 BILLION COUPONS OF 1 TO 10 EACH ON ITS TOYS IN PREPARATION FOR ANOTHER TOUGH HOLIDAY SEASON INDUSTRIAL PRODUCTION ROSE IN JULY SUGGESTING THE LETHARGIC MANUFACTURING SECTOR IS SHOWING SIGNS OF GROWTH TIME WARNER APPEARS TO HAVE DROPPED OPPOSITION TO TURNER BROADCASTING'S PLAN TO BUY CASTLE ROCK ENTERTAINMENT AND NEW LINE CINEMA PRUDENTIAL INSURANCE GAVE UP TRYING TO SELL ITS REINSURANCE UNIT TO A PRIVATE BUYER AND INSTEAD WILL EXPLORE OPTIONS INCLUDING A PUBLIC OFFERING KMART'S PROFIT FELL 39 IN THE LATEST QUARTER REFLECTING DISAPPOINTING APPAREL SALES LOSSES AT PACE WAREHOUSE STORES AND HIGHER INVENTORIES PSI RESOURCES SHAREHOLDERS WOULD GET 125 MORE FOR THEIR STOCK UNDER AN ADJUSTED MERGER AGREEMENT WITH CINCINNATI GAS & ELECTRIC VW POSTED A 409 MILLION PROFIT FOR JULY MARKING WHAT IT CLAIMED IS PROOF THAT THE GERMAN CAR COMPANY'S PROMISED TURNAROUND IS UNDER WAY DESPITE ESPIONAGE ALLEGATIONS FROM GM BUT ANALYSTS NOTED VW DIDN'T SAY WHAT THE PROFIT FIGURE INCLUDES AND HOW THAT COMPARES WITH YEARAGO RESULTS TEXTRON PLANS TO SELL UP TO 19 OF ITS PAUL REVERE INSURANCE UNIT OFFERING AS MANY AS 85 MILLION SHARES FOR 25 EACH OR A TOTAL OF 213 MILLION BONDS LEHMAN BROTHERS TREASURY INDEX 546877 UP 2396 COMMODITIES OIL 1786 A BARREL OFF 28 CENTS DOW JONES FUTURES INDEX 12556 UP 091 SPOT INDEX 12366 UP 057 DOLLAR 10155 YEN OFF 025 16870 MARKS OFF 00245 9308170049 930817 BUSINESS WORLD THE HAVES LOSE AN EDGE BUT TAXES AREN'T THE CAUSE BY TIM W FERGUSON THE 1990S ARE PUNISHING THE RICH BUT FOR REASONS HAVING LITTLE TO DO WITH THE CLINTON ECONOMIC PROGRAM RATHER THE FALLOFF IN VALUE AND EARNING POWER OF TRADITIONAL STOCKPILES OF WEALTH REAL PROPERTY AND FIXEDINCOME INSTRUMENTS ESPECIALLY IS EVENING THE SCORE BETWEEN THE MONEYED AND THE MEAGER AND EVEN MORE SO BETWEEN THE OLD AND THE YOUNG DISINFLATION HAS DRIVEN INTEREST RATES AND REALESTATE PRICES LOWER THE RENTIER CLASS IS ENJOYING A SIGNIFICANT LIFT BONDS HAVE APPRECIATED BUT THESE LONGTERM NOTES ARE NOT THE BULK OF THE PERTINENT INTERESTINCOME MARKET FLOW OF FUNDS DATA FROM THE FEDERAL RESERVE SUGGEST THAT EVEN TODAY HOUSEHOLDS HAVE ROUGHLY TWICE THE AMOUNT OF SHORTTERM AS LONGTERM INTERESTBEARING ASSETS FOR THE MANY WHOSE FORTUNES ARE TIED TO THE RATES OF CDS AND MONEYMARKET FUNDS SHORTTERM STUFF THE INTERESTRATE PLUNGE IS A BIGTIME HIT AND WHO IS BEARING A PARTICULAR BURDEN OLDER PEOPLE THE ACCOMPANYING TABLE SUGGESTS THE WELLOFF ESPECIALLY IT APPEARS THE PUBLIC POLICY INSTITUTE OF THE AMERICAN ASSOCIATION OF RETIRED PERSONS HAS COMPILED SEVERAL HELPFUL TABLES FROM 1991 CENSUS BUREAU SURVEYS AND ALTHOUGH THE AARP IS IN THE BUSINESS OF POORMOUTHING ON BEHALF OF PROLETARIAN PENSIONERS THE NUMBERS SHOW INTEREST INCOME SKEWED TOWARD TOP EARNERS FOR INSTANCE THE PERCENTAGE OF INCOME DERIVED FROM INTEREST AS OPPOSED TO SALARY SOCIAL SECURITY PENSIONS DIVIDENDS AND THE REST FOR THOSE AGE 65 AND OVER RISES RATHER STEADILY AS TOTALINCOME LEVELS INCREASE MOREOVER ONCE EARNINGS REACH THE HIGH FIVE FIGURES ABOVE WHERE TRADITIONAL RETIREMENT BENEFITS ARE A FACTOR THE INTERESTINCOME SHARES ARE WELL SHORT OF WHAT THEY BECOME AFTER INCOMES EXCEED 100000 ELDERLY WOMEN ARE EVIDENTLY MUCH MORE DEPENDENT ON INTEREST FOR INCOME THAN ARE OLDER MEN TOPBRACKET FEMALES OVER AGE 75 GET 46 OF THEIR INCOME THAT WAY HOWEVER THE DATA DON'T INDICATE HOW MANY OF THE SAMPLE ARE WIDOWED OR OTHERWISE UNMARRIED SO IN MANY CASES WHERE A COUPLE IS STILL TOGETHER THIS DEPENDENCY IS MISLEADING IT SHOULD BE NOTED FURTHER THAT 75 OF THE WOMEN IN THE SAMPLE WERE IN INCOME CATEGORIES BELOW 20000 THOSE WE SEE IN THE OVER 100000 CATEGORY ARE AN ESPECIALLY TINY PART OF THE RETIRED FEMALE POPULATION THIS ONLY REINFORCES THE IDEA THAT THE INTEREST HIT IS FELT MOST ACUTELY AT THE TOP WHAT THESE CENSUSAARP TABULATIONS DON'T TELL US IS HOW MUCH OF THIS INTEREST INCOME IS COMING FROM SHORT VS LONGERTERM NOTES AND THEREFORE HOW SUSCEPTIBLE EACH DEMOGRAPHIC GROUP HAS BEEN TO THE RATE DECLINE NO ONE I SPOKE WITH ON WALL STREET OR IN WASHINGTON VENTURED TO SAY WHETHER THE RICH AND/OR THE ELDERLY SHOWED A PARTICULAR PROPENSITY FOR ONE DURATION OF NOTE OR THE OTHER ALTHOUGH WE MIGHT EXPECT SOPHISTICATED INVESTORS TO TEND TOWARD LONGER EXPOSURES TO THE EXTENT THAT INTEREST INCOME IS AN AVERAGE MIX OF LONG AND SHORT FOR EVERYBODY ANOTHER AARP BREAKDOWN SUGGESTS THAT DECLINES IN YIELD SUCH AS WE'VE SEEN OVER THE PAST YEAR OF 10 TO 15 MEAN AN OVERALL INCOME REDUCTION OF 5 TO 7 FOR THE MOST AFFECTED THE WOMEN OVER AGE 75 AND 100000 INCOME THAT WON'T BREAK MANY DOWAGERS BUT OVER A STRETCH OF YEARS IT CAN PUT A DENT IN WHAT GOES TO HEIRS LIKEWISE THE STEEP DROP IN HOME AND INCOMEPROPERTY PRICES IN SOME PARTS OF THE US IN THE PAST FIVE YEARS IS GOING TO MEAN LESS OF A WINDFALL FOR THOSE HEIRS REAL ESTATE CAN BE A MORE DEMOCRATIC GAME THAN SECURITIES ON BOTH THE WAYS UP AND DOWN AS MOST PROPERTY IS BOUGHT WITH BORROWED MONEY INFLATION IN THOSE CIRCUMSTANCES CAN TURN LEVERAGE INTO LOOT BUT VALUATIONS HAD REACHED SUCH LEVELS ON THE EAST AND WEST COASTS THAT BY THE LATE 1980S MANY YOUNG HEADS OF HOUSEHOLD COULDN'T QUALIFY TO GET A FOOTHOLD IN THE MARKET IN RETROSPECT LUCKY FOR THEM NOW THAT PRICES HAVE COME DOWN THEY ARE MORE ABLE TO REALIZE THE AMERICAN DREAM AND THE RIDICULOUS TAX BREAKS THAT COME WITH IT THOSE WHO WERE ABLE TO BUY THE PRICIEST HOMES AND OTHER PRESTIGE TANGIBLES HAVE SUFFERED THE STEEPEST DECLINES THE BIG GAINERS IN A DISINFLATIONARY ENVIRONMENT CONSUMERGOODS PURCHASERS AND STOCKHOLDERS ARE LIKELY TO BE A MORE DIVERSE LOT PENSIONS AND OTHER RETIREMENT PROGRAMS ARE HEAVILY INTO EQUITIES HERE'S HOPING FOR A MORE SOPHISTICATED ANALYSIS OF WHETHER INEQUALITIES OF WEALTH HAVE BEEN LESSENED AS I'VE ADDUCED BUT JUST A LAYMAN'S LOOK AT THE NUMBERS IS REASON ENOUGH TO QUESTION THE CASE FOR STIFFER US INHERITANCE TAXES AS ADVANCED AS RECENTLY AS LAST YEAR IN HOW RICH IS TOO RICH THE BOOK'S TWO AUTHORS HERBERT INHABER AND SIDNEY CARROLL MADE A SEDUCTIVE ARGUMENT THAT COMPOUND INTEREST AND OTHER DEMONS WERE WIDENING THE GAP BETWEEN INDOLENT TRUSTFUNDERS AND WORKER BEES DISINFLATION ACCOMPANIED BY INTERESTRATE DECLINES WOULD SEEM TO BE RIGHTING THAT WRONG WITHOUT INVOLVING THE INTERNAL REVENUE SERVICE EVERY SIX MONTHS THIS NEWSPAPER FURTHERS THE CAUSE OF INTELLECTUAL HONESTY BY PUBLISHING FORECASTS OF THE NATION'S TOP ECONOMIC TALKING HEADS AS WELL AS REVIEWING WHO GOT WHAT RIGHT AND WRONG IN PREVIOUS PREDICTIONS WHAT IF A SIMILAR SAMPLING OF POLITICAL PROGNOSTICATIONS HAD BEEN TAKEN SAY AS THE RETURNS WERE COMING IN LAST NOV 3 OR AS THE LAST WORDS OF THAT POEM WERE ROLLING OFF THE LIPS OF MAYA ANGELOU ON JAN 20 A NUMBER OF US MIGHT HAVE COME OFF WAY TOO BEARISH PERHAPS IN THE AUGUST QUIET IT CAN BE CHEERFULLY ARGUED THAT THE FIRST YEAR OF THE BILLARY WHITE HOUSE HASN'T BEEN AS BAD AS WE HAD REASON TO FEAR AMERICA MAY BE HELD HOSTAGE AS THE MOUTH OF LIMBAUGH HAS IT BUT THERE'S STILL SUNSHINE GETTING THROUGH THE CELL WALLS FOR THAT WE DON'T HAVE THE ADMINISTRATION TO THANK A MARKET ENTHUSIAST FINDS LITTLE TO LIKE IN THE CLINTON INITIATIVES BUT THE MANY CHECKS BUILT INTO THE SYSTEM BETWEEN THE TWO MAJOR PARTIES AMONG THE BRANCHES AND AGENCIES OF GOVERNMENT FROM THE MUCHLAMENTED LOBBYISTS FOR THE INTERESTS INCLUDING TAXPAYERS ALL HAVE CONTRIBUTED TO DAMAGE CONTROL THE TREND IS NOT IN LIBERTY'S FAVOR AND THERE'LL BE PLENTY OF ISSUES TO SETTLE IN 1994 AND BEYOND BUT TIME MAGAZINE WAS PREMATURE IN HERALDING THE OVERTURNING OF REAGANISM EVEN AFTER MORE THAN FOUR YEARS OF WHAT ESSAYIST TOM BETHELL CALLS THE BUSHCLINTON PRESIDENCY THE REMNANTS OF THE REVOLUTION THAT PRECEDED IT ARE STILL MANY AND THE SPIRIT OF 1980 IS LATENT THE FAITHFUL CAN ENJOY THE REMAINING DAYS OF SUMMER WITH A LONG POSITION STILL OPEN 9308170048 930817 RALSTON PURINA CONSIDERS SPINOFF OF TWO BUSINESSES BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL RALSTONRALSTON PURINA GROUP MOVING TO FURTHER STRIP AWAY OPERATIONS WHERE IT ISN'T A MARKET LEADER SAID IT IS WEIGHING THE SPINOFF OF ITS CEREAL AND BABY FOOD OPERATIONS IN ADDITION TO THE CHEX BRAND AND OTHER CEREAL LINES AND THE BEECHNUT BABY FOOD BRAND THE POTENTIAL DIVESTITURE WOULD INCLUDE A SMALLISH BAKER OF CRACKERS AND COOKIES RALSTON SAID IN THE YEAR ENDED SEPT 30 THE OPERATIONS IN QUESTION HAD SALES OF 8086 MILLION THE ST LOUISBASED COMPANY DECLINED TO DISCLOSE THEIR EARNINGS PERFORMANCE RALSTON'S BOARD WILL REVIEW MANAGEMENT'S ANALYSIS OF THE POSSIBLE MOVE AT A SEPT 23 BOARD MEETING IF THE COMPANY GOES FORWARD WITH THE PLAN THE WORLD'S BIGGEST MAKER OF PET FOODS AND BATTERIES WILL HAVE DIVIDED ITSELF INTO THREE SEPARATE PARTS ITS CONTINENTAL BAKING OPERATION WITH FISCAL 1992 SALES OF 202 BILLION THIS SUMMER BEGAN OPERATING AS A SEPARATE PUBLIC COMPANY IN WHICH RALSTON DISTRIBUTED A 55 STAKE TO STOCKHOLDERS AND RETAINED THE REMAINDER WHAT WOULD REMAIN OF RALSTON IS STILL LARGE RALSTON'S PETFOOD BUSINESS HAD FISCAL 1992 SALES OF 173 BILLION AND BATTERY SALES LAST FISCAL YEAR TOTALED 216 BILLION ALL TOLD EXCLUDING THE CEREAL BABY FOOD AND GROCERY LINES AND THE BAKERY OPERATIONS RALSTON HAD FISCAL 1992 SALES OF 497 BILLION THAT FIGURE INCLUDES ITS AGRICULTURALPRODUCTS OPERATION AND THE CONTRIBUTION FROM CERTAIN OTHER BUSINESSES A COMPANY SPOKESMAN STRESSED THAT RALSTON IS ANNOUNCING A STUDY NOT A CONCRETE SPINOFF PLAN HE DECLINED TO SAY WHY THE COMPANY IS MULLING SUCH A MOVE BEYOND SAYING WE BELIEVE THAT IT WOULD BE IN SHAREHOLDERS INTERESTS BUT THE ACTION WOULD CLEARLY TIGHTEN RALSTON'S FOCUS ON MARKETS WHERE IT A IS PRINCIPAL PLAYER BEECHNUT WHICH RALSTON ACQUIRED FROM NESTLE INC IN 1989 TRAILS DOMINANT BABY FOOD MAKER GERBER PRODUCTS CO IN THE CEREAL INDUSTRY RALSTON'S SALES ARE VERY SMALL IN COMPARISON WITH SUCH GIANTS AS KELLOGG CO AND GENERAL MILLS INC IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING RALSTON'S SHARES CLOSED AT 34375 UP 125 CENTS THE COMPANY'S ANNOUNCEMENT CAME AFTER THE MARKET HAD CLOSED 9308170047 930817 INTERNATIONAL BRIEF GENERAL MOTORS CORP SAAB AUTO VENTURE'S LOSS FOR SIX MONTHS NARROWED SWEDISH AUTO MAKER SAAB AUTOMOBILE AB SAID MONDAY ITS PRETAX LOSS NARROWED TO 684 MILLION KRONOR 837 MILLION IN THE FIRST SIX MONTHS OF 1993 FROM 782 MILLION KRONOR A YEAR EARLIER SAAB AUTOMOBILE IS A JOINT VENTURE BETWEEN GENERAL MOTORS CORP OF THE US AND SWEDISH AUTOMOTIVE AND AEROSPACE GROUP SAABSCANIA AB WHICH IN TURN IS WHOLLY OWNED BY AB INVESTOR THE KEY HOLDING COMPANY IN THE WALLENBERG FAMILY'S FINANCIAL SPHERE AS SAAB SHARES AREN'T PUBLICLY TRADED THE GROUP ISN'T REQUIRED TO RELEASE DETAILED EARNINGS STATEMENTS IN ITS BRIEF SIXMONTH REPORT SAAB NOTED THE 684 MILLION KRONORPRETAX LOSS INCLUDED 123 MILLION KRONOR IN STARTUP COSTS FOR ITS SAAB 900 SERIES OF PASSENGER CARS INTRODUCED IN JULY SIXMONTH SALES DECLINED 38 TO 775 BILLION KRONOR FROM 806 BILLION KRONOR IN THE YEAREARLIER PERIOD IN THE SECOND QUARTER OF 1993 SAAB'S PRETAX LOSS CONTRACTED TO 423 MILLION KRONOR FROM 507 MILLION KRONOR IN THE SAME QUARTER A YEAR EARLIER THE COMPANY SAID SALES FELL 9 IN THE SECOND QUARTER SAAB DIDN'T ELABORATE 9308170046 930817 BUSINESS BRIEF MACRO COMPUTER PRODUCTS COPYRIGHT INFRINGEMENT SUIT FILED BY UNISYS IS SETTLED MACRO COMPUTER PRODUCTS SAID IT HAS SETTLED A CIVIL SUIT BROUGHT AGAINST IT BY UNISYS CORP WHICH CHARGED MACRO WITH SELLING COUNTERFEIT UNISYS PARTS MACRO A ROCHESTER HILLS MICH DISKDRIVE MAKER AND DEALER OF USED UNISYS PARTS SAID THAT UNDER THE SETTLEMENT IT WILL CONTINUE TO DEVELOP AND PROVIDE PRODUCTS FOR CERTAIN UNISYS COMPUTERS MACRO SAID BOTH PARTIES AGREED THAT ALL OUTSTANDING ISSUES WERE RESOLVED WITHOUT ADMISSION OF GUILT OR FURTHER LIABILITY UNISYS ADDED THAT MACRO AGREED NOT TO USE COUNTERFEIT UNISYS PARTS TO RETURN OR DESTROY PROPRIETARY UNISYS INFORMATION MAKE A CASH PAYMENT AND PAY ROYALTIES TO UNISYS THE COMPLAINT FILED IN MICHIGAN FEDERAL COURT IN MAY ALLEGED TRADEMARK AND COPYRIGHT INFRINGEMENT AND MISAPPROPRIATION OF UNISYS TRADE SECRETS AND UNFAIR COMPETITION THE SUIT CLAIMED THAT MACRO SOLD UNISYS EQUIPMENT THAT HAD BEEN UPGRADED WITH COUNTERFEIT MEMORY CHIPS LABELED TO APPEAR AS UNISYS PARTS 9308170045 930817 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 FEDERAL HOME LOAN BANK SYSTEM 109 MILLION OF NOTES DUE AUG 20 1998 PRICED AT PAR TO YIELD 504 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF NOTES DUE AUG 26 1998 PRICED AT PAR TO YIELD 518 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 15 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF STEPUP MEDIUMTERM NOTES DUE AUG 25 1998 PRICED AT PAR TO YIELD 44 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 25 BASIS POINTS ABOVE FIVEYEAR TREASURYS THE COUPON STEPS UP TO 595 IN AUGUST 1995 THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO PANHANDLE EASTERN PIPE LINE CO 100 MILLION OF DEBENTURES DUE AUG 15 2024 PRICED AS 72S AT 9925 TO YIELD 7261 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 94 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO PANHANDLE EASTERN PIPE LINE IS A UNIT OF PANHANDLE EASTERN CORP INTERNATIONAL SEMITECH MICROELECTRONICS INC 424 MILLION SHARES PRICED AT 1875 CANADIAN DOLLARS US1426 APIECE THROUGH UNDERWRITERS RBC DOMINION SECURITIES INC AND FIRST MARATHON SECURITIES LTD KURZWEIL APPLIED INTELLIGENCE INC INITIAL OFFERING OF 21 MILLION COMMON SHARES PRICED AT 10 APIECE THROUGH UNDERWRITERS LED BY ROBERTSON STEPHENS & CO TOWN & COUNTRY TRUST INITIAL OFFERING OF 133 MILLION COMMON SHARES PRICED AT 22 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO SARASOTA COUNTY SCHOOL BOARD FLORIDA 1185 MILLION LEASE REVENUE REFUNDING BONDS PRICED BY A MERRILL LYNCH & CO GROUP YIELDS RANGE FROM 285 IN 1994 TO 56 IN 2010 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 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SMITH BARNEY SHEARSON INC THE OFFERING SERIES 19931588 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 359 MONTHS FIRST CHICAGO CORP 700 MILLION OF CREDITCARD ASSETBACKED CERTIFICATES PRICED BY LEAD MANAGERS FIRST CHICAGO CAPITAL MARKETS AND SALOMON BROTHERS INC ACCORDING TO MCM CORPORATEWATCH THE CERTIFICATES ISSUED THROUGH FIRST CHICAGO MASTER TRUST WERE PRICED WITH AN INITIAL COUPON OF 33875 AT 999533 TO YIELD 3975 AND WILL FLOAT 20 BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE RATED TRIPLEA BY BOTH MOODY'S AND S&P THE CERTIFICATES HAVE AN AVERAGE LIFE OF 502 YEARS CREDIT SUPPORTS CONSISTS OF A 13 CASH COLLATERAL ACCOUNT MBNA AMERICA BANK NA 750 MILLION OF CREDITCARD CERTIFICATES PRICED THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES ACCORDING TO MCM CORPORATEWATCH THE CERTIFICATES WERE PRICED AS 54 AT 99 29/32 TO YIELD 5434 A 40BASISPOINT SPREAD ABOVE TREASURY FIVEYEAR NOTE THE CERTIFICATES WERE RATED TRIPLEA BY BOTH MOODY'S AND S&P AND HAVE AN AVERAGE LIFE OF FIVE YEARS THE EXPECTED FINAL MATURITY IS MARCH 15 1999 THE LEGAL MATURITY IS SEPT 15 2000 MBNA AMERICA IS A UNIT OF MBNA CORP CEMENTOS MEXICANOS SA MEXICO 120 MILLION OF EUROBONDS DUE AUG 31 2000 AT ISSUE AND REOFFER PRICE 9974 VIA CITIBANK INTERNATIONAL PLC GROSS COUPON 10 NET COUPON 85 BONDS YIELD 855 SEMIANNUAL A SPREAD OF 311 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES 125 POINTS INTEREST PAYABLE SEMIANNUALLY QUEBEC CANADIAN PROVINCE 11 BILLION CANADIAN DOLLARS OF 75 GLOBAL DEBENTURE BONDS DUE DEC 1 2003 AT ISSUE AND REOFFER PRICE 98813 VIA MERRILL LYNCH INTERNATIONAL LTD AND SCOTIA MCLEOD INC BONDS YIELD 767 SEMIANNUAL A MARGIN OF 68 BASIS POINTS OVER COMPARABLE CANADIAN GOVERNMENT BOND FEES 035 POINT INTEREST PAYABLE SEMIANNUALLY WORLD BANK SUPRANATIONAL 100 MILLION OF FIXED/FLOATINGRATE EURONOTES DUE SEPT 13 1996 AT ISSUE AND REOFFER PRICE PAR VIA MORGAN STANLEY INTERNATIONAL INTEREST PAYABLE SEMIANNUALLY IN US DOLLARS AT 4 ON MARCH 13 1994 AND THEREAFTER AT 115 LESS SIXMONTH LIBOR FOR ITALIAN LIRE FEES 01875 POINT 9308170044 930817 LETTERS TO THE EDITOR WE'RE NOT LOBBYISTS I WAS APPALLED TO READ IN A JULY 19 ARTICLE ON LOBBYISTS THAT MY PROFESSIONAL SOCIETY HAS SUDDENLY BECOME A LOBBY GROUP THAT REPRESENTS WASHINGTONBASED TRADE ASSOCIATIONS MY PROFESSIONAL CAREER HAS BEEN AS AN EXECUTIVE WITH NATIONAL HEALTHRELATED CONSUMER ORGANIZATIONS AND THE AMERICAN SOCIETY OF ASSOCIATION EXECUTIVES HAS PROVIDED MY CONTINUING EDUCATION MY CERTIFICATION MY PUBLIC COMMUNITY SERVICE MY ETHICAL STANDARDS AND MORE ASAE PROVIDES THE SAME RANGE OF SERVICES FOR THOSE OF US WHO HAVE CHOSEN TO BE PROFESSIONALS IN THE NONPROFIT EXECUTIVE FIELD THAT AMERICAN MANAGEMENT ASSOCIATION FOR EXAMPLE PROVIDES TO FORPROFIT EXECUTIVES MR BOLAN IS ALSO A DIRECTOR OF ASAE 9308170043 930817 BUSINESS BRIEF SANTE FE PACIFIC PIPELINE PARTNERS CHARGE OF ABOUT 10 MILLION TO BE TAKEN IN THIRD PERIOD SANTA FE PACIFIC PIPELINE PARTNERS LP SAID IT WILL TAKE AN ESTIMATED 10 MILLION CHARGE IN THE THIRD QUARTER RELATED TO THE SETTLEMENT OF A LAWSUIT AND SANTA FE'S INVOLVEMENT IN OTHER LEGAL PROCEEDINGS THE CHARGE REMAINS SUBJECT TO ADJUSTMENT SAID THE LOS ANGELES OWNER OF AN INDEPENDENT REFINED PETROLEUM PRODUCTS PIPELINE IT DIDN'T DISCLOSE THE AMOUNT THAT THE SETTLEMENT WITH NAVAJO REFINING CO REQUIRES IT TO PAY SANTA FE ALSO AGREED TO EXPAND A PIPELINE BETWEEN PHOENIX AND EL PASO TEXAS SUBJECT TO CERTAIN CONDITIONS NAVAJO'S SUIT AND A STILLPENDING LAWSUIT BY EL PASO REFINERY LP WERE FILED IN AUGUST 1992 CLAIMING THAT SANTA FE FAILED TO PROVIDE ADDITIONAL PIPELINE CAPACITY TO PHOENIX AND TUCSON ARIZ FROM EL PASO THE REFINERS ALLEGED THAT THEY PROCEEDED WITH EXPANSIONS UNDER THE BELIEF THAT SANTA FE WOULD PROVIDE WHATEVER PIPELINE CAPACITY WAS REQUIRED TO TRANSPORT THE PRODUCT INTO ARIZONA IN A SECURITIES AND EXCHANGE COMMISSION FILING SANTA FE SAID IT BELIEVES THE CIVIL PROCEEDINGS ARE WITHOUT MERIT 9308170042 930817 FINANCING BUSINESS COCACOLA FEMSA SA COCACOLA FEMSA SA A MEXICAN SOFT DRINK BOTTLER 30 OWNED BY COCACOLA CO OF THE US SAID IT PLANS AN INITIAL PUBLIC OFFERING TOTALING ABOUT 150 MILLION COCACOLA FEMSA SAID IN MEXICO CITY THAT ITS OTHER CORPORATE PARENT FEMSA MEXICO'S BIGGEST BEVERAGE COMPANY WILL SELL THE SHARES TO REDUCE ITS STAKE TO 51 FROM 70 IN A STATEMENT FILED WITH THE US SECURITIES AND EXCHANGE COMMISSION COCACOLA FEMSA SAID IT WILL OFFER FOR SALE 4922700 AMERICAN DEPOSITARY SHARES IN THE US AND 1640900 ADS SHARES INTERNATIONALLY EACH ADS WILL REPRESENT 10 SERIES L SHARES OF COCACOLA FEMSA COMMON STOCK FEMSA WILL ALSO OFFER FOR SALE 16409000 SERIES L SHARES FOR SALE IN MEXICO THE COMPANY SAID THE PRICE IS CURRENTLY EXPECTED TO BE BETWEEN 17 AND 19 AN ADS OR THE EQUIVALENT OF 170 TO 190 A SERIES L SHARE 9308170041 930817 LETTERS TO THE EDITOR DOUBLESPEAK ON UNIONS LESS VIOLENT IS PEACEFUL IF SOME SEE ROCK THROWING SHOOTING AT POWER TRANSFORMERS AND IGNITING FIRES AS RELATIVELY PEACEFUL ACTS BY THE UNITED MINE WORKERS IN ITS CURRENT STRIKE UNIONS DISPLAY A REVIVAL OF MILITANCY JULY 8 I EXPECT IT'S ONLY BECAUSE THIS IS THE SAME UNION THAT WAS FINED 52 MILLION BY THE STATE OF VIRGINIA FOR VIOLENCE DURING ITS STRIKE AGAINST PITTSTON COAL FOUR YEARS AGO THE PEACEFUL DESCRIPTION DOESN'T MEAN THESE ACTS ARE ANY LESS DANGEROUS OR LESS COSTLY THE LIST OF STRIKERELATED VIOLENCE AGAINST EASTERN ASSOCIATED COAL CORP ALONE INCLUDES DESTROYING BY ARSON AND GUNFIRE EQUIPMENT THAT WILL COST OUR COMPANY MORE THAN 2 MILLION TO REPLACE DAMAGING VEHICLES WITH BASEBALL BATS USING A GUN TO THREATEN VENDORS ATTEMPTING TO CROSS A PICKET LINE AND ROCK THROWING THAT RESULTED IN INJURIES TO SUPERVISORS ONE OF THE MOST SERIOUS ACTS OF VIOLENCE TO DATE OCCURRED EARLY ON THE MORNING OF JUNE 30 WHEN GUNSHOTS WERE FIRED INTO A TRANSFORMER THAT SUPPLIES POWER TO ONE OF OUR UNDERGROUND MINES WHERE PEOPLE WERE WORKING THE DAMAGE CAUSED A COMPLETE LOSS OF POWER ALLOWING EXPLOSIVE METHANE GAS TO START BUILDING UP AND UNDERGROUND WATER TO BEGIN FLOODING THE MINE THIS ACT HAD THE POTENTIAL TO CAUSE SERIOUS IF NOT LIFETHREATENING INJURY TO PEOPLE WHO WERE TRYING TO MAINTAIN OPERATIONS AND PRESERVE JOBS FOR EMPLOYEES INCLUDING UMWA MINERS 9308170040 930817 BUSINESS BRIEF CHEMFIX TECHNOLOGIES INC FOURTHQUARTER CHARGE EXPECTED FOR PLANT CLOSING CHEMFIX TECHNOLOGIES INC SAID IT WILL TAKE A FOURTHQUARTER 500000 CHARGE ASSOCIATED WITH THE CLOSING OF OPERATIONS AT ITS BAILARD PLANT IN VENTURA CALIF THE ENVIRONMENTAL SERVICES CONCERN SAID THE FACILITY WAS UNDERUTILIZED AND CONSOLIDATION OF THE OPERATIONS WITH ANOTHER OIL AND GAS WASTETREATMENT FACILITY WOULD SAVE THE COMPANY ABOUT 13 MILLION A YEAR IN THE 1992 FISCAL FOURTH QUARTER ENDED AUG 31 THE METAIRIE LA COMPANY EARNED 600000 OR EIGHT CENTS A SHARE ON 67 MILLION IN REVENUE CHEMFIX ALSO NAMED ALLEN R GOLD TO FILL A BOARD VACANCY MR GOLD 45 YEARS OLD IS PRESIDENT OF ALLY CAPITAL CORP IN SAUSALITO CALIF 9308170039 930817 BUSINESS BRIEF DANA CORP REINZ COMPANIES MAKERS OF GASKETS ARE ACQUIRED DANA CORP IN A BID TO EXPAND ITS INTERNATIONAL BUSINESS ACQUIRED A FAMILYOWNED GROUP OF GERMAN GASKET MAKERS THE PRICE WASN'T DISCLOSED THE TOLEDO OHIO COMPANY SAID IT ACQUIRED REINZDICHTUNGS GMBH OF NEUULM GERMANY AND HUGO REINZ GMBH OF BERLIN THE REINZ HOLDINGS INCLUDE SUBSIDIARIES IN MILWAUKEE AND MADRID AS WELL AS MINORITY INTERESTS IN OPERATIONS IN JAPAN INDIA AND FRANCE A DANA SPOKESMAN SAID THE ACQUISITION PRICE FELL CONSIDERABLY SHORT OF THE REINZ GROUP'S 1992 REVENUE OF 230 MILLION DANA'S CHAIRMAN AND CHIEF EXECUTIVE SOUTHWOOD J MORCOTT SAID IN A STATEMENT THAT THE ACQUISITION SHOULD HELP HIS COMPANY EXPAND ITS ENGINEPARTS BUSINESS IN EUROPEAN ASIAN AND NORTH AMERICAN MARKETS FOR BOTH ORIGINALEQUIPMENT AND AFTERMARKET PARTS THE COMPANY SAID ITS OWN GASKET DIVISION VICTOR PRODUCTS HAD 1992 SALES OF 270 MILLION 9308170038 930817 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED AUGUST 13 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER BRYANT ILL WILL REDEEM ON SEPT 13 1993 ITS 6125 POLLUTION CONTROL REVENUE BONDS COLLATERALIZED SERIES 1978 DUE MAY 1 2008 CONTINENTAL BANK CHICAGO IS TRUSTEE CALVERT CITY KY WILL REDEEM ON SEPT 13 1993 ITS 7 1979 SERIES A POLLUTION CONTROL REVENUE BONDS DUE FEB 1 2009 MELLON BANK PHILADELPHIA IS PAYING AGENT 9308170037 930817 BUSINESS BRIEF RANGER OIL LTD WELL IN ANGOLA STRIKES OIL MORE TEST DRILLING IS PLANNED RANGER OIL LTD SAID ITS FIRST TEST WELL IN ANGOLA STRUCK OIL THE CALGARY ALBERTA OIL AND GAS PRODUCER SAID THE WILDCAT WELL ABOUT 30 MILES OFFSHORE WAS DRILLED TO A DEPTH OF 12100 FEET AND TESTED AT AN AVERAGE FLOW RATE OF 4600 BARRELS A DAY OF MEDIUM DENSITY OIL THROUGH A ONEINCH CHOKE RANGER SAID THE WELL WAS SUSPENDED AND THAT FURTHER TECHNICAL APPRAISAL WOULD BE NEEDED TO ASSESS THE DISCOVERY'S POTENTIAL RANGER SAID IT OWNS A 70 INTEREST IN THE WELL WHICH IT OPERATES THE COMPANY SAID ITS PARTNERS ARE ANGOLA STATE OIL COMPANY SONANGOL UEE WITH A 20 INTEREST AND HERITAGE OIL & GAS LTD A PRIVATE UK COMPANY WITH A 10 INTEREST A RANGER EXECUTIVE SAID THE TEST WELL COST 88 MILLION HE SAID THAT UNDER AN AGREEMENT WITH THE ANGOLAN GOVERNMENT THE COMPANY PLANS TO SPEND ABOUT 25 MILLION MORE IN ANGOLA BY JUNE 1995 DRILLING TWO ADDITIONAL TEST WELLS AND RUNNING SEISMIC TESTS TO IDENTIFY FUTURE DRILLING SITES 9308170036 930817 BUSINESS BRIEF SPECIALTY FOODS CORP GROUP ACQUIRES EIGHT UNITS FROM BELEDIA OF NETHERLANDS INVESTORS LED BY FORT WORTH TEXAS FINANCIER ROBERT M BASS COMPLETED THEIR PREVIOUSLY ANNOUNCED PURCHASE OF EIGHT FOOD COMPANIES FROM BELEDIA NV OF THE NETHERLANDS FOR ABOUT 11 BILLION IN THE LARGEST LEVERAGED BUYOUT IN NEARLY A YEAR THE INVESTOR GROUP CALLED SPECIALTY FOODS CORP ACQUIRED STELLA FOODS INC OF GREEN BAY WIS METZ BAKING CO OF SIOUX CITY IOWA PACIFIC COAST BAKING CO OF OAKLAND CALIF MOTHER'S CAKE & COOKIE CO OF OAKLAND BURNS & RICKER INC OF PATERSON NJ B&G/DSD INC OF ROSELAND NJ H&M FOOD SYSTEMS CO OF FORT WORTH AND GORDON'S WHOLESALE INC OF DES MOINES IOWA SPECIALTY FOODS INCLUDES MR BASS'S KEYSTONE INC AND ITS AFFILIATE ACADIA PARTNERS LP HAAS WHEAT & PARTNERS INC OF DALLAS UBS CAPITAL CORP OF NEW YORK AND DLJ MERCHANT BANKING PARTNERS LP AN AFFILIATE OF EQUITABLE COS' DONALDSON LUFKIN & JENRETTE INC UNIT THE SENIOR MANAGEMENT OF THE INVESTOR COMPANIES ARE EXPECTED TO BE SUBSTANTIAL EQUITY OWNERS IN SPECIALTY FOODS A SPOKESWOMAN SAID THE ACQUIRED COMPANIES ARE STRONG REGIONAL BRANDS OF SPECIALTY FOOD ITEMS AND HAVE COMBINED ANNUAL REVENUES OF 21 BILLION 9308170035 930817 TECHNOLOGY BRIEF MYCOGEN CORP FRANCE GIVES REGISTRATION TO SELL MVP BIOINSECTICIDE MYCOGEN CORP SAID ITS MVP BIOINSECTICIDE RECEIVED A PROVISIONAL REGISTRATION FROM THE GOVERNMENT OF FRANCE FOR COMMERCIAL SALE THE AGENT CONTROLS MOTHS THAT EAT WINE AND TABLE GRAPES THE REGISTRATION GRANTED BY THE FRENCH MINISTRY OF AGRICULTURE AND FORESTRY IS FRANCE'S FIRST FOR A GENETICALLY ENGINEERED PESTICIDE THE AGRICULTURAL BIOTECHNOLOGY COMPANY IN SAN DIEGO SAID IT WAS OBTAINED IN COLLABORATION WITH ROYAL DUTCH/SHELL GROUP'S AGRISHELL AFFILIATE IN FRANCE WHICH IS ABLE TO MARKET AND DISTRIBUTE MVP THE TWO COMPANIES WILL SHARE PROFITS FROM THE SALE OF MVP IN FRANCE A MYCOGEN SPOKESMAN SAID MVP IS A SELECTIVE ENVIRONMENTALLY COMPATIBLE BIOLOGICAL PESTICIDE THAT WORKS ON CATERPILLAR PESTS IN A VARIETY OF CROPS AND IS EFFECTIVE AGAINST SOME INSECTS THAT HAVE RESISTANCE TO CHEMICAL PESTICIDES THE REGISTRATION IS EFFECTIVE IMMEDIATELY WITH THE PROVISION THAT MYCOGEN PROVIDE ADDITIONAL LABORATORY TESTING AND FIELD PERFORMANCE DATA BY 1997 9308170034 930817 INTERNATIONAL BRIEF RTZ CORP DISCUSSIONS WITH CARADON MIGHT LEAD TO SALE OF UNIT LONDONBASED MINING COMPANY RTZ CORP SAID IT IS IN TALKS WITH BRITISH INDUSTRIAL CONGLOMERATE MBCARADON ABOUT THE SALE OF RTZ'S BUILDING AND ELECTRICALPRODUCTS DIVISION PILLAR LTD RTZ SAID THE DISCUSSIONS MAY OR MAY NOT LEAD TO THE SALE OF A LARGE PART OF PILLAR NO FURTHER DETAILS WERE GIVEN EARLIER YESTERDAY SPOKESMEN FROM BOTH COMPANIES REFUSED TO COMMENT ON A REPORT IN LONDON'S SUNDAY TIMES SAYING CARADON IS ON THE BRINK OF MAKING A 750 MILLION 11 BILLION PURCHASE FROM RTZ ACCORDING TO THE REPORT UNNAMED RTZ SOURCES SAID A SALE TO CARADON IS TO BE COMPLETED SOON AFTER MONTHS OF NEGOTIATIONS IN TRADING YESTERDAY ON LONDON'S STOCK EXCHANGE RTZ GAINED ONE PENCE TO CLOSE AT 687 PENCE 1004 WHILE CARADON SHARES ROSE 16 PENCE TO 303 PENCE 9308170033 930817 BUSINESS BRIEF CAMELOT CORP AUDITORS' REVIEW TO DELAY FILING OF ANNUAL REPORT CAMELOT CORP SAID ITS AUDITORS ARE REVIEWING VARIOUS TRANSACTIONS THAT WILL DELAY THE FILING OF ITS AUDITED ANNUAL REPORT WITH THE SECURITIES AND EXCHANGE COMMISSION DANIEL WETTREICH CHAIRMAN OF THE VIDEO MARKETING AND DISTRIBUTION FINANCIAL SERVICES AND ENERGY CONCERN SAID THE AUDITORS HEIN & ASSOCIATES HAVEN'T RESOLVED SOME ACCOUNTING AND REPORTING ISSUES RELATED TO THE TRANSACTIONS MR WETTREICH SAID DALLASBASED CAMELOT FILED ITS ANNUAL REPORT FOR THE YEAR ENDED APRIL 30 WITH UNAUDITED FINANCIAL STATEMENTS OUR AUDITORS HAVEN'T CLARIFIED WHAT THEIR PROBLEM IS HE SAID A HEIN & ASSOCIATES PARTNER FAMILIAR WITH THE AUDIT DIDN'T RETURN CALLS SEEKING COMMENT MR WETTREICH ADDED THAT HE EXPECTS THE BOARD TO MEET WITH THE AUDITORS WITHIN A FEW DAYS TO DISCUSS ANY PROBLEMS THE COMPANY ALSO POSTPONED ITS ANNUAL STOCKHOLDERS MEETING SCHEDULED FOR LATE AUGUST 9308170032 930817 BUSINESS BRIEF TIFFANY & CO LUXURY RETAILER POSTS LOSS OF 326 MILLION IN QUARTER TIFFANY & CO REPORTED A FISCAL SECONDQUARTER LOSS DUE TO A 327 MILLION AFTERTAX CHARGE INCURRED FROM REORGANIZATION OF ITS RETAIL ACTIVITIES IN JAPAN FOR THE QUARTER ENDED JULY 31 TIFFANY POSTED A NET LOSS OF 326 MILLION OR 206 A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 39 MILLION OR 25 CENTS A SHARE EXCLUDING THE 327 MILLION CHARGE OR 207 A SHARE THE COMPANY WOULD HAVE HAD EARNINGS OF 162000 OR ONE CENT A SHARE SALES FOR THE QUARTER DIPPED 5 TO 1142 MILLION FROM THE YEARAGO 1208 MILLION TIFFANY WHICH IS BASED IN NEW YORK SAID THAT US RETAIL SALES ROSE 13 FOR THE QUARTER TO 607 MILLION BUT INTERNATIONAL SALES FELL 28 TO 345 MILLION BECAUSE OF THE BUSINESS REALIGNMENT IN JAPAN THE COMPANY ANNOUNCED IN JUNE THAT IT WOULD TAKE OVER MARKETING AND MERCHANDISING IN ITS 29 JAPANESE STORES OPERATED BY MITSUKOSHI LTD TIFFANY SAID IT WOULD SET UP A 575 MILLION PRODUCTRETURN RESERVE IN ORDER TO PURCHASE SUBSTANTIALLY ALL OF MITSUKOSHI'S TIFFANY INVENTORIES OVER THE NEXT FOUR YEARS FOR THE SIX MONTHS TIFFANY HAD A NET LOSS OF 315 MILLION OR 200 A SHARE INCLUDING THE CHARGE COMPARED WITH YEARAGO NET INCOME OF 69 MILLION OR 44 CENTS A SHARE 9308170031 930817 BUSINESS BRIEF WESTINGHOUSE ELECTRIC CORP TWO UNITS ARE RECLASSIFIED FOR ACCOUNTING PURPOSES WESTINGHOUSE ELECTRIC CORP SAID THE SECURITIES AND EXCHANGE COMMISSION FORCED IT TO RETURN TWO UNITS TO CONTINUING OPERATIONS FOR ACCOUNTING PURPOSES THE SHIFT WILL INCREASE 1992 PERSHARE EARNINGS BY TWO CENTS AND DECREASE PERSHARE EARNINGS IN 1993'S FIRST SIX MONTHS BY ONE CENT IN 1992 WESTINGHOUSE HAD A LOSS OF 129 BILLION OR 381 CENTS A SHARE IN 1993'S FIRST SIX MONTHS THE COMPANY EARNED 148 MILLION OR 35 CENTS A SHARE THE MOVE ALSO INCREASES THE PROVISION FOR LOSSES ON DISCONTINUED OPERATIONS FOR 1992 BY 103 MILLION TO 141 BILLION THE PITTSBURGH COMPANY'S KNOLL FURNITURE UNIT AND WESTINGHOUSE COMMUNITIES REALESTATE ARM WERE CLASSIFIED AS DISCONTINUED OPERATIONS IN NOVEMBER 1992 AS PART OF WESTINGHOUSE'S PLAN TO SELL FOUR UNITS BUT THE SEC SAID THE COMPANY COULD CALL THE UNITS DISCONTINUED ONLY IF THEY WERE TO BE SOLD WITHIN A YEAR WESTINGHOUSE DOESN'T PLAN TO SELL KNOLL UNTIL NEXT YEAR AND WESTINGHOUSE COMMUNITIES IN 1995 9308170030 930817 BUSINESS BRIEF TRANSCO ENERGY CO CORPUS CHRISTI GAS LAWSUITS ARE SETTLED BY AGREEMENT TRANSCO ENERGY CO SAID IT REACHED AN AGREEMENT IN PRINCIPLE TO SETTLE LITIGATION AND RESTRUCTURE ITS BUSINESS RELATIONSHIP WITH A CLOSELY HELD NATURALGAS GATHERING CONCERN THE HOUSTONBASED PIPELINE COMPANY SAID IT WILL ACQUIRE THROUGH A STOCK SWAP CORPUS CHRISTI GAS GATHERING INC'S 50 INTEREST IN THE TWO COMPANIES' JOINTLY OWNED GAS GATHERING AND INTRASTATE PIPELINE ASSETS THEN LEASE CERTAIN OF THE ASSETS TO CORPUS CHRISTI GAS TRANSCO SAID THAT IT EXPECTS THE TRANSACTION INCLUDING NONCASH CHARGES TO COST LESS THAN 50 MILLION BEFORE TAXES THE TWO COMPANIES BECAME PARTNERS IN 1989 ACCORDING TO A SPOKESWOMAN AND VARIOUS DISPUTES RESULTED IN CORPUS CHRISTI GAS SUING TRANSCO FOR 890 MILLION CHARGING USURY TRANSCO COUNTERSUED CORPUS CHRISTI GAS FOR 250 MILLION THOSE LAWSUITS WHICH WOULD HAVE GONE TO TRIAL THIS MONTH WILL BE DROPPED ONCE A FINAL AGREEMENT IS SIGNED TRANSCO SAID IN CORPUS CHRISTI TEXAS AN ATTORNEY FOR CORPUS CHRISTI GAS CONFIRMED THE AGREEMENT AND SAID COMPANY OFFICIALS WERE GLAD TO HAVE IT ALL BEHIND THEM 9308170029 930817 BUSINESS BRIEF FURR'S/BISHOP'S INC CAFETERIA CHAIN SAYS IT SEEKS TO REFINANCE UNIT'S NOTES FURR'S/BISHOP'S INC SAID IT'S SEEKING TO REFINANCE ALL OR PART OF ITS OPERATING UNIT'S 1929 MILLION OF 11 SENIOR SECURED NOTES DUE 1998 TO INCREASE CASH FLOW SO THE COMPANY CAN GROW THE CAFETERIA CHAIN BASED IN LUBBOCK TEXAS SAID IT'S CONSIDERING TRANSACTIONS THAT WOULD BRING ADDITIONAL EQUITY INTO THE COMPANY TO BE USED FOR GROWTH BUT WOULDN'T SPECIFY ANY TRANSACTIONS UNDER CONSIDERATION MEANWHILE THE COMPANY SAID IT HAD A LOSS FOR THE SECOND QUARTER ENDED JULY 3 OF 47 MILLION OR 58 CENTS A SHARE COMPARED WITH A LOSS OF 500000 OR 21 CENTS A SHARE A YEAR EARLIER REVENUE FELL 2 TO 657 MILLION FROM 669 MILLION THE RECENT PERIOD INCLUDED A ONETIME NONCASH CHARGE OF 24 MILLION TO COVER CLOSING OF AN UNPROFITABLE SPECIALTY UNIT IN MAY THE SLATED CLOSING OF TWO NONRESTAURANT UNITS NEXT YEAR AND 11 MILLION IN SEVERANCE PAY TO MICHAEL J LEVENSON FORMER CHAIRMAN MR LEVENSON WAS OUSTED IN JUNE AFTER KL GROUP INC A COMPANY CONTROLLED BY NEW YORK INVESTMENT BANKER KEVIN E LEWIS BOUGHT A 10 STAKE IN FURR'S/BISHOP'S AND INSTALLED MR LEWIS AS CHAIRMAN YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FURR'S/BISHOP'S CLOSED AT 150 A SHARE DOWN 125 CENTS 9308170028 930817 MARKETING BRIEF NOTED AMERICAN ONLINE INC AN INTERACTIVE COMPUTER SERVICE WILL OFFER A VARIETY OF INFORMATION SERVICES FROM OMNI MAGAZINE AND ITS SISTER PUBLICATION COMPUTE MAGAZINE 9308170027 930817 BUSINESS BRIEF AIR CANADA LEASE ACCORD SET FOR 24 JETS MADE BY UNIT OF BOMBARDIER AIR CANADA SAID IN MONTREAL THAT IT AGREED TO LEASE 24 REGIONAL JET AIRCRAFT MADE BY BOMBARDIER INC'S CANADAIR UNIT TERMS OF THE TRANSACTION WEREN'T DISCLOSED BUT ONE PERSON FAMILIAR WITH IT ESTIMATED THE TOTAL VALUE OF THE AIRCRAFT AT 500 MILLION CANADIAN DOLLARS US380 MILLION THE TRANSACTION IS SUBJECT TO COMPLETION OF A FINANCING PACKAGE TO BE ARRANGED BY BOMBARDIER OFFICIALS OF THE TWO COMPANIES SAID VARIOUS POSSIBILITIES ARE BEING STUDIED AND A CANADAIR SPOKESMAN SAID BOMBARDIER AIMS TO HAVE THE PACKAGE IN PLACE BY THE END OF THE MONTH 9308170026 930817 PRUDENTIAL GIVES UP TRYING TO SELL REINSURANCE UNIT WILL EXPLORE OPTIONS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL INSURANCE CO OF AMERICA GAVE UP TRYING TO SELL ITS REINSURANCE UNIT TO A PRIVATE BUYER AND INSTEAD WILL EXPLORE OPTIONS INCLUDING TAKING THE UNIT PUBLIC PRUDENTIAL SAID IN MARCH THAT IT WAS SEEKING TO SELL THE UNIT FOR AT LEAST 12 BILLION THE NEWARK NJ INSURER ADDED THAT IF IT DIDN'T GET ITS PRICE IT WOULD PULL THE REINSURANCE UNIT FROM THE MARKET AND THAT IT HAD NO INTEREST IN SELLING PRUDENTIAL REINSURANCE CO IN A PUBLIC STOCK OFFERING PRUDENTIAL HAS SINCE HAD A CHANGE OF HEART WE ARE NOW EXPLORING OTHER OPTIONS FOR MAXIMIZING THE COMPANY'S VALUE INCLUDING BUT NOT LIMITED TO ALTERNATIVES IN THE PUBLIC MARKET SAID WILLIAM LINK PRUDENTIAL EXECUTIVE VICE PRESIDENT INVESTORS HAVE BEEN BIDDING UP PRICES FOR REINSURANCE STOCKS SINCE HURRICANE ANDREW HEIGHTENED DEMAND AND PRICES FOR REINSURANCE INSURANCE COMPANIES BUY REINSURANCE TO CUSHION THEMSELVES FROM MAJOR LOSSES ON CATASTROPHES AND OTHER EVENTS PRUDENTIAL REINSURANCE IS THE US'S FIFTHLARGEST REINSURER REPORTING PREMIUMS LAST YEAR OF 797 MILLION INDUSTRY EXPERTS HAVE SAID PRUDENTIAL'S ASKING PRICE FOR PRU RE WAS TOO HIGH AT LEAST ONE INVESTMENT GROUP A GROUP LED BY TEXAS INVESTOR ROBERT BASS MADE A BID FOR PRU RE BUT PRUDENTIAL APPARENTLY REJECTED THE OFFER AS INADEQUATE EMPLOYERS REINSURANCE CORP A UNIT OF GENERAL ELECTRIC CO ALSO IS SAID TO HAVE EXPRESSED INTEREST GE DECLINED TO COMMENT WE HAVE TO LOOK NOT JUST AT PRICE BUT ALSO TERMS AND CONDITIONS SAID ARTHUR POWELL MANAGING DIRECTOR FOR PRUDENTIAL INVESTMENT CORP THE INVESTMENT ARM OF PRUDENTIAL PRUDENTIAL SAID IT APPOINTED ROBERT E RILEY AS PRU RE'S CHIEF EXECUTIVE OFFICER AND CHAIRMAN MR RILEY 63 YEARS OLD HAD BEEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PRUDENTIAL RESIDENTIAL SERVICES PRUDENTIAL'S HOME MORTGAGE AND REALESTATE BROKERAGE UNIT MR RILEY SUCCEEDS MR LINK TO WHOM MR RILEY WILL REPORT PRUDENTIAL COULD HAVE A TOUGH TIME ATTRACTING PUBLIC INVESTORS TO PRU RE BECAUSE OF ITS DIFFICULTY IN FINDING A PRIVATE BUYER ACCORDING TO INVESTMENT BANKERS A PUBLIC OFFERING ALSO HAS SOME DISADVANTAGES FOR PRUDENTIAL THE BANKERS SAY BECAUSE IT WOULD HAVE TO RETAIN PART OF THE UNIT IN A PUBLIC SALE AND PUT UP RESERVES TO SAFEGUARD INVESTORS FROM LOSSES FROM PRIOR YEARS 9308170024 930817 BUSINESS BRIEF LUFKIN INDUSTRIES INC CONTINUED SLUMP IN INDUSTRY LEADS TO 10 STAFF REDUCTION LUFKIN INDUSTRIES INC REFLECTING A CONTINUING WORLDWIDE SLUMP IN OILFIELD DRILLING SAID IT WILL LAY OFF 200 EMPLOYEES OR ABOUT 10 OF ITS WORK FORCE ALTHOUGH SOME SEGMENTS OF THE LUFKIN TEXAS COMPANY HAVE SHOWN IMPROVEMENT IN 1993 COMPARED WITH LAST YEAR LUFKIN STILL HAD A LOSS OF 23 MILLION FOR THE FIRST SIX MONTHS COMPARED WITH NET INCOME OF 19 MILLION A YEAR EARLIER THE LAYOFFS ARE PART OF MANAGEMENT'S RECENT REVIEW OF OPERATIONS AND ARE EFFECTIVE IMMEDIATELY SAID LUFKIN A MANUFACTURER OF OILFIELD PUMPING UNITS 9308170023 930817 INTERNATIONAL MIGRANTS FUEL CHINA'S ECONOMIC GROWTH FLOOD OF WORKERS SPOTLIGHTS GAP BETWEEN RICH POOR BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL HUMEN CHINA CROUCHED ON THE SLIMY WALL OF A CATFISH POND AND WEARING A MUDSPATTERED STRAW HAT YE DAOZHOU IS AN UNLIKELY KEYSTONE OF RAPID ECONOMIC GROWTH IN CHINA THE 22YEAROLD FARM WORKER BORROWED 10 FROM HIS PARENTS IN A POOR VILLAGE 500 MILES NORTH OF THIS SOUTH CHINA TOWN BOUGHT A BUS TICKET AND SHOWED UP WITH LITTLE MORE THAN THE CLOTHES ON HIS BACK HE SOON LANDED A JOB RAISING FISH FOR A LOCAL FARM COOPERATIVE RUN BY ENTREPRENEURS WHO HAD OTHER BUSINESSES TO TEND LIKE MILLIONS OF OTHER CHINESE PEASANTS MR YE IS PART OF A RISING TIDE OF MIGRANT LABOR THAT IS GREASING CHINA'S STUNNING HURTLE FROM COMMUNISM INTO FREEMARKET CAPITALISM THE TRANSITION HAS SET OFF AN ECONOMIC EXPLOSION IN PLACES LIKE HUMEN A LUSH AREA IN GUANGDONG PROVINCE NOT FAR FROM HONG KONG FREED FROM THE STRICTURES OF A COMMAND ECONOMY HUMEN RESIDENTS DISCOVERED THEY COULD MAKE MORE MONEY IN LIGHT INDUSTRY PROPERTY SPECULATION OR RUNNING SINGALONG BARS THAN THEY COULD ON THEIR FARMS RATHER THAN LEAVE FIELDS AND PONDS FALLOW IN THE SHADOW OF BULLDOZERS AND CONSTRUCTION CRANES LOCAL FARMERS AND IN SOME CASES GOVERNMENTS HAVE BEEN HIRING ITINERANT LABOR FROM CHINA'S LESS PROSPEROUS REGIONS WORD OF SUCH HIRINGS HAS UNDAMMED A TORRENT OF MIGRANTS TO FASTERGROWING REGIONS ESPECIALLY GUANGDONG WHERE THE ECONOMY HAS SOARED AT AN ANNUAL RATE OF 22 FOR THE PAST TWO YEARS UNDERSCORING THE WIDENING GAP BETWEEN PROSPERITY AND POVERTY IN CHINA I CAME TO TRY MY LUCK MR YE SAYS WITHOUT LOOKING UP FROM THE POND WHERE HE AND FOUR OTHER ITINERANT WORKERS SORT MINNOWS INTO POOLS OF ALGAECOVERED WATER GUANGDONG IS SO OPEN YOU DO ANYTHING YOU DO IT AND YOU GAIN FROM IT WHAT THE WORKERS GAIN ARE MONTHLY INCOMES OF BETWEEN 70 AND 100 AS MUCH AS FIVE TIMES WHAT THEY MADE IN THEIR HOMETOWNSPLUS THE PROSPECT OF LEARNING A TRADE THEY CAN TAKE HOME ONE DAY I WANT TO MAKE SOME MONEY AND BRING HOME SEEDS FOR BUSINESS SAYS WANG HENJIAO A 20YEAROLD WHO ARRIVED IN HUMEN A WEEK AGO AND LANDED A JOB AT A FISHERY AND PIG FARM AT A VAST CONSTRUCTION SITE IN THE DUSTY CITY OF SHUNDE 60 MILES TO THE WEST FIVE YOUNG MEN WITH THEIR FEW BELONGINGS IN VINYL BAGS SLUNG OVER THEIR SHOULDERS TRUDGE UP TO THE FOREMAN AND ARE TOLD THEY CAN START WORK FOR ABOUT 4 A DAY THE NEXT MORNING THIS IS A VERY GOOD PLACESAYS WANG YUANYI A STRINGY 19YEAROLD FROM HUNAN PROVINCE DUE NORTH SUCH INCOMES PALE BY CONTRAST TO THE 1000 OR MORE FARMERS AND MANY FACTORY WORKERS IN GUANGDONG MAKE PEOPLE WHO RUN FACTORIES SHOPS OR PROPERTY DEVELOPMENTS CAN MAKE EVEN MORE AS A RESULT ONLY 60 OF GUANGDONG'S RURAL POPULATION REMAINS IN AGRICULTURE DOWN FROM MORE THAN 90 IN 1978 AT THE START OF ECONOMIC REFORM THE REMAINING WORKERS ARE MORE PRODUCTIVE STATISTICS SHOW BUT EVEN LU HEYUAN VICE DIRECTOR OF THE PROVINCE'S AGRICULTURE DEPARTMENT CONCEDES THAT LOCAL GOVERNMENTS MAY NEED TO HIRE ITINERANT LABOR PARTICULARLY BECAUSE OF A PROVINCIAL EFFORT TO DEVELOP MORE FARMLAND FOR FRUIT AND OTHER CASH CROPS AS AWARENESS OF CHINA'S INCOME GAP AND GUANGDONG'S NEED FOR AGRICULTURAL WORKERS SPREADS MORE YOUNG PEOPLE ARE LIKELY TO HEAD TO THE PROVINCE OR OTHER WEALTHY AREAS IN SEARCH OF WORK GUANGDONG'S SOCALLED FLOATING POPULATION TOTALS MORE THAN FIVE MILLION ITS RESIDENT POPULATION IS 65 MILLION THE RISK IS THAT FLOATING WORKERS WILL BE SECONDCLASS CITIZENS THESE FLOATING WORKERS COME HERE AND CAN ONLY DO SIMPLE JOBS WORRIES YU WENLI THE 55YEAROLD DIRECTOR OF AGRICULTURAL PRODUCTION IN BEIJIAO A RURAL GUANGDONG TOWN OF 83000 WHERE MOST PEOPLE WORK ON FARMS AND ITINERANT WORKERS FILL NEW FACTORIES THE NEWCOMERS MAY SEE PEOPLE LIKE A LOCAL EEL FARMER WHO MR YU SAYS IS A USDOLLAR MILLIONAIRE AND BECOME JEALOUS JEALOUSY CAN LEAD TO PROBLEMS THREE ITINERANT WORKERS FROM SICHUAN PROVINCE WERE ACCUSED LAST WEEK IN SHENZHEN A BUSTLING CHINESE CITY OPPOSITE HONG KONG OF KIDNAPPING A BABY AND DEMANDING 6400 RANSOM IN DONGGUAN THE FASTDEVELOPING COUNTY OF WHICH HUMEN IS PART CRIME HAS BEEN RISING ALONG WITH THE FLOATING POPULATION THERE ARE NOW MORE THAN A MILLION ITINERANTS IN THE COUNTY OFFICIALS SAY COMPARED WITH A PERMANENT POPULATION OF 1360000 MOST OF THE ITINERANTS WORK IN FACTORIES WHEN THEY FIRST COME HERE THEY BELIEVE IT IS EASY TO FIND MONEY AND JOBS SAYS ZHANG WEIHUA DEPUTY SECRETARYGENERAL OF DONGGUAN'S MUNICIPAL GOVERNMENT BUT SOME OF THEM FAIL AND SEE OTHER PEOPLE ARE RICH AND HAVE GOOD CLOTHING OR HOUSES THEN THEY DISOBEY LAWS TO KEEP THE MIGRANTS HAPPY DONGGUAN ATTEMPTS TO ENFORCE LABOR LAWS DESIGNED TO PROTECT THEM THEY ARE SUPPOSED TO BE GUARANTEED MINIMUM WAGES AND HOUSING CONDITIONS AND AN EIGHTHOUR WORKDAY WE TREAT THE FLOATING POPULATION AS OUR OWN FELLOWS SAYS MR ZHANG WE DON'T THINK OF THEM AS SECONDCLASS CITIZENS THAT'S THE THEORY ANYWAY BUT SOME CONSTRUCTION WORKERS SAY THEY LIVE CRAMMED INTO HOUSES MADE OF STRAW SALARIES ON FARMS VARY WIDELY AND MOST FLOATING WORKERS ARE REQUIRED TO RETURN HOME AFTER TWO OR THREE YEARS NO DOUBT SAYS MR ZHANG THEY WILL BE REPLACED THE FLOATING POPULATION CONTRIBUTES A LOT TO ECONOMIC DEVELOPMENT HERE HE SAYS OUR ECONOMY WON'T DEVELOP FAST IF WE DON'T HAVE THEIR CONTRIBUTION 9308170022 930817 REYNOLDS METALS PLANS 9 CUT IN ITS CAPACITY REDUCTION IS SEEN BY SOME AS TOO SMALL TO EASE WORLD ALUMINUM GLUT BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL REYNOLDS METALS CO IN AN EFFORT TO SHRINK THE WORLDWIDE ALUMINUM GLUT SAID IT WILL CUT CAPACITY BY 88000 METRIC TONS 97000 SHORT TONS OR 9 THE MOVE BY THE NATION'S NO 2 ALUMINUM MAKER ON THE HEELS OF OTHER CUTBACKS BY ALUMINUM CO OF AMERICA AND SOME OVERSEAS PRODUCERS RAISED THE LIKELIHOOD OF A RECOVERY HOWEVER SOME INVESTORS ARE LOOKING FOR EVEN SHARPER CUTS REYNOLDS STOCK SLIPPED 375 CENTS TO CLOSE AT 49375 A SHARE IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY BUT OTHER ALUMINUM STOCKS ROSE INCLUDING ALCOA WHICH CLIMBED 225 TO CLOSE AT 73875 SOME ANALYSTS SAID THE REDUCTION IS TOO SMALL TO SIGNIFICANTLY DECREASE GLOBAL OVERSUPPLY IT'S STILL GOING TO BE A LONG ROAD TO RECOVERY SAID THOMAS M VAN LEEUWEN A FIRST BOSTON CORP ANALYST INDEED ALUMINUM'S PRICE ON THE LONDON METAL EXCHANGE WAS FLAT AFTER THE ANNOUNCEMENT BY REYNOLDS THE HOPE IN THE INDUSTRY AND WITH INVESTORS IS THAT OTHER COMPANIES WILL FOLLOW SAID MR VAN LEEUWEN BUT HE SAID THE INDICATIONS HAVE BEEN THAT EVERYONE IS RELUCTANT TO CUT PRODUCTION ALUMINUM PRICES HAVE RISEN SINCE PITTSBURGHBASED ALCOA THE WORLD'S LARGEST ALUMINUM COMPANY ANNOUNCED IN JUNE IT WOULD CUT CAPACITY BY 268000 METRIC TONS IN THE US WHICH AMOUNTS TO A QUARTER OF ITS DOMESTIC CAPACITY THE PRICE RISE SINCE THEN MAKES IT LESS ATTRACTIVE TO CUT CAPACITY MR VAN LEEUWEN SAID REYNOLDS' REDUCTION WHICH WILL INVOLVE 350 EMPLOYEES OR ABOUT 1 OF THE COMPANY'S WORK FORCE WILL FORCE THE RICHMOND VA COMPANY TO TAKE A THIRDQUARTER CHARGE OF 8 MILLION OR 13 CENTS A SHARE IN 1992'S THIRD QUARTER REYNOLDS REPORTED NET INCOME OF 208 MILLION OR 35 CENTS A SHARE REYNOLDS WILL CLOSE ONE LINE AT ITS MASSENA NY PLANT AND TWO LINES AT ITS LONGVIEW WASH FACILITY IN LATE OCTOBER IN AUGUST 1991 THE COMPANY BEGAN SHUTTING DOWN ITS PLANT IN TROUTDALE ORE WHICH HAD CAPACITY OF 121000 METRIC TONS WITH THE 1991 AND CURRENT CUTBACKS COMBINED REYNOLDS WILL HAVE IDLED 209000 METRIC TONS OR 21 OF ITS CAPACITY THE ALUMINUM INDUSTRY HAS BEEN HIT BY HEAVY EXPORTS FROM THE FORMER SOVIET UNION WHERE PRODUCERS ARE LOOKING TO THE WORLD MARKET TO SELL ALUMINUM ONCE DESTINED FOR THE DEFENSE INDUSTRY AND COMPANIES NOW MIRED IN A SOUR ECONOMY 9308170021 930817 REVIEW & OUTLOOK EDITORIAL THE BCCI CASE A FEDERAL JURY'S DECISION TO ACQUIT ROBERT ALTMAN KNOCKS OFF ONE TIP OF THE SPRAWLING BCCI ICEBERG WE AREN'T ABOUT TO QUIBBLE WITH THE JURY'S FINDING BUT WHETHER WE WILL EVER GET A FULL AND MUCHNEEDED LOOK AT THIS HUGE INTERNATIONAL FINANCIAL SCANDAL REMAINS AN OPEN QUESTION IT IS NECESSARY TO UNDERSTAND THAT SOMETHING IMPORTANT HAS ALWAYS BEEN AT STAKE HERE BEYOND THE LITIGATION ITSELF THE BCCI AFFAIR IS IN LARGE MEASURE ABOUT THE INTEGRITY OF OUR INCREASINGLY GLOBALIZED FINANCIAL SYSTEM IT IS ABOUT WHETHER PUBLIC OFFICIALS AND REGULATORS ARE INCLINED TO ENSURE THAT THE SYSTEM'S CREDIBILITY REMAINS INTACT MANHATTAN DISTRICT ATTORNEY ROBERT MORGENTHAU'S OFFICE WHICH HANDLED THE ALTMAN TRIAL WAS AMONG THE FIRST TO RECOGNIZE THE BROADER POLICY IMPLICATIONS OF BCCI AND SHOULD BE CREDITED FOR MINIMIZING ITS POTENTIALLY DESTRUCTIVE EFFECTS INSIDE THE US IT WAS BECAUSE OF MR MORGENTHAU'S EFFORTS THAT FIRST AMERICAN CORP THE WASHINGTON DC BANK DEVOURED BY BCCI FINALLY ENDED UP IN THE HANDS OF A TRULY INDEPENDENT TRUSTEE FORMER NEW YORK BANKING SUPERINTENDENT HARRY ALBRIGHT MR ALBRIGHT SOLD THE BANK TO FIRST UNION CORP OF CHARLOTTE NC FOR 453 MILLION AVOIDING THE FANTASTIC SUGGESTION OF OTHERS THAT THE SHEIK OF ABU DHABI BCCI'S FINAL MAJORITY SHAREHOLDER BE INVITED IN FOR MORE PARTICIPATION WE ALSO SUSPECT THAT MR MORGENTHAU'S PERSISTENCE IN PURSUING THE CASE'S CAST OF CHARACTERS MAY BE CREDITED WITH KEEPING THE MINDS OF EMBARRASSED FOREIGN BANKING OFFICIALS PROPERLY FOCUSED ON BCCI'S MAMMOTH PLUNDERINGS NOTWITHSTANDING THE ALTMAN RESULT SOMEONE TRUSTWORTHY IN THE US SHOULD STILL INVESTIGATE HOW THE GANG OF CROOKS RUNNING BCCI CAME TO OWN THE BIGGEST BANK IN THE NATION'S CAPITAL WE STILL DON'T HAVE THE TRUTH BUT ONE OBVIOUS CANDIDATE FOR THAT JOB THE SENATE BANKING COMMITTEE IS EVEN NOW RUN BY KEATING FIVE SENATOR DON RIEGLE WHO CLEARLY STANDS FOR SOMETHING ELSE IN PUBLIC LIFE BCCI PERPETRATED THE BIGGEST BANKING SCAM IN THIS COUNTRY'S HISTORY AND UNDER THE EYE OF FEDERAL REGULATORS WORLDWIDE WE NOW HAVE ALTMAN JURORS SUGGESTING THEY SIMPLY DON'T BELIEVE THE GOVERNMENT AN INTERESTING TREND WASHINGTON NOT VERY POPULAR AT THE MOMENT COULD USE MORE MEN AND WOMEN OF THE MORGENTHAU SCHOOL WHICH RECOGNIZES WHEN A THREAT TO THE SYSTEM SUCH AS BCCI DEMANDS THAT A LARGE EFFORT TO PROTECT THE PUBLIC INTEREST CARRIES MORE WEIGHT THAN POLITICAL CAREERS OF WHATEVER RANK 9308170020 930817 WHO'S NEWS CABOT OIL & GAS CORP CABOT OIL & GAS CORP HOUSTON JOHN U CLARKE WHO IN MAY RESIGNED AS SENIOR VICE PRESIDENT CHIEF FINANCIAL OFFICER AND TREASURER OF TRANSCO ENERGY CO WAS NAMED EXECUTIVE VICE PRESIDENT CHIEF FINANCIAL OFFICER AND CHIEF ADMINISTRATIVE OFFICER OF THIS INDEPENDENT NATURALGAS CONCERN MR CLARKE 40 YEARS OLD SUCCEEDS ROGER J KLATT 55 WHO IS RESIGNING FROM CABOT 9308170019 930817 CREDIT RATINGS OMNICOM GROUP INC NEW YORK STANDARD & POOR'S CORP RAISED ITS RATING ON 186 MILLION OF CONVERTIBLE SUBORDINATED DEBT OF OMNICOM GROUP TO TRIPLEBPLUS FROM TRIPLEB CITING STRONG PROFITABILITY AND COST DISCIPLINE THE RATINGS AGENCY ADDED THAT THE RATING ALSO REFLECTS OMNICOM'S STATUS AS THE WORLD'S FOURTH LARGEST ADVERTISING AGENCY MOREOVER S&P SAID OMNICOM SHOULD RECEIVE A BOOST IN EQUITY FROM THE LIKELY CONVERSION OF 86 MILLION IN CONVERTIBLE SUBORDINATED DEBT IN OCTOBER 9308170018 930817 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN SOUTH KOREA'S FINANCE MINISTRY EXPANDED A PACKAGE OF SPECIAL LOANS FOR SMALL BUSINESS IN AN EFFORT TO MINIMIZE THE ADVERSE EFFECTS OF FINANCIAL REFORMS ANNOUNCED LAST WEEK THE MINISTRY ADDED 7666 MILLION TO AN ANNOUNCED PACKAGE OF 4729 MILLION TO HELP SMALL COMPANIES WHICH ARE EXPECTED TO BE WORSTHIT BY THE REFORMS AIMED AT STAMPING OUT CORRUPTION COLLUSION BETWEEN POLITICIANS AND BUSINESSMEN AND THE HUGE UNDERGROUND ECONOMY THE LOANS WILL BE PROVIDED TO BUSINESSES THAT HAVE DIFFICULTY SECURING FUNDS THROUGH NORMAL CHANNELS SOUTH KOREAN SMALL BUSINESSES HAVE LONG RELIED ON BORROWING FROM THE INFORMAL CURB MARKET WHERE RATES ARE USURIOUS AND SOME LENDERS OPERATE UNDER FALSE NAMES THESE LENDERS DISAPPEARED AFTER THE GOVERNMENT LAST THURSDAY BANNED SUCH FALSENAME ACCOUNTS LEADERS OF THE FREE DEMOCRATIC PARTY PART OF GERMANY'S RULING COALITION AGREED TO PUSH A SERIES OF MEASURES INCLUDING LOWER TAXES AND LONGER WORKING HOURS DESIGNED TO REVITALIZE THE ECONOMY ECONOMICS MINISTER GUENTER REXRODT PLEDGED TO MAKE THE ECONOMY THE PARTY'S CENTRAL THEME IN COMING MONTHS IN ADDITION TO A PROPOSED 40HOUR WORK WEEK FOR GOVERNMENT EMPLOYEES AND AN INCOME TAX CUT TO 42 FROM 44 THE FDP AGREED TO SEEK A REDUCTION IN THE GOVERNMENT'S SHARE OF THE GROSS DOMESTIC PRODUCT SEPARATELY MR REXRODT SAID HE WILL PROPOSE RELAXING GERMANY'S RESTRICTIONS ON STORE HOURS OFFICIALS IN THE CENTRAL RUSSIAN REGION OF ALTAY ARE STRUGGLING WITH AN OUTBREAK OF ANTHRAX AND EPIDEMICS OF DIPHTHERIA IN BARNAUL THE REGION'S CAPITAL 71 PEOPLE CONTRACTED ANTHRAX LAST WEEK AFTER EATING CONTAMINATED MEAT DOCTORS HAVE ALSO STARTED A VACCINATION CAMPAIGN TO DEAL WITH FOUR LOCAL EPIDEMICS OF DIPHTHERIA WHICH CAUSES DIFFICULTY IN BREATHING AND SWALLOWING EXPERTS LINK THE HEALTH CRISIS TO ECONOMIC PROBLEMS THAT HURT HEALTH AND LIVING STANDARDS A DROUGHT THAT HAS GRIPPED VIETNAM'S CENTRAL PROVINCES SINCE APRIL IS DRYING OUT LAKES AND RIVERS AND CAUSING SERIOUS DAMAGE TO CROPS WATER LEVELS IN MAJOR RIVERS IN THE REGION ARE BELOW NORMAL AND ALL BUT NINE OF 149 LAKES IN QUANG BINH PROVINCE ALONE HAVE DISAPPEARED BECAUSE OF THE DROUGHT WHICH STRUCK DURING WHAT IS NORMALLY THE RAINY SEASON IN QUANG BINH QUANG TRI AND THUA THIENHUE PROVINCES 77000 ACRES OF RICE FIELDS HAVE BEEN DAMAGED AND 57000 ACRES DESTROYED BELOWNORMAL RAINFALL HAS COMBINED WITH DRY HOT WINDS AND TEMPERATURES AS HIGH AS 102 DEGREES TO REDUCE LAKE AND RIVER LEVELS AS MUCH AS FOUR TO SIX INCHES A MONTH BANGLADESH CRITICIZED A PROPOSED US LAW RESTRICTING THE IMPORT OF PRODUCTS MADE BY CHILDREN ARGUING THAT IT COULD FORCE THOUSANDS OF CHILD WORKERS INTO BEGGING OR PROSTITUTION CONGRESS WAS LIKELY TO PASS THE CHILD LABOR DETERRENCE ACT BY OCTOBER 1994 THE BILL CALLS FOR A BAN ON GARMENTS PRODUCED BY CHILDREN BANGLADESH WHICH EXPORTED GARMENTS VALUED AT 700 MILLION TO THE US LAST YEAR HAS ITS OWN BAN ON CHILD LABOR BUT IT HAS NEVER ENFORCED IT STRICTLY TWO SINGAPORE COMPANIES FORMED A JOINT VENTURE TO DEVELOP 531 ACRES OF SEAFRONT ON BINTAN ISLAND IN INDONESIA INTO AN INTEGRATED RESORT THE JOINT VENTURE EQUALLY OWNED BY TROPICAL RESORTS LTD AND DBS LAND LTD WILL BEGIN DEVELOPMENT OF AN 18HOLE GOLF COURSE AT A COST OF 13 MILLION BY LATE 1994 AND IS TO COMPLETE THE WORK IN SEVEN YEARS THE FIRST PHASE OF THE GOLF COURSE HOUSING AND HOTELS WILL COST 496 MILLION TO 559 MILLION CHINESE AIRLINE CREWS ONCE REWARDED FOR WRESTLING WITH HIJACKERS IN FLIGHT HAVE BEEN TOLD BY AVIATION OFFICIALS TO FOLLOW HIJACKERS' ORDERS IN THE INTEREST OF PASSENGER SAFETY IN LAST WEEK'S HIJACKING OF AN AIR CHINA FLIGHT FROM BEIJING TO JAKARTA WHEN A WOOL VENDOR THREATENED TO SQUIRT ACID ON FELLOW PASSENGERS PILOTS ACCEDED TO THE HIJACKER'S DEMAND TO BE FLOWN TO TAIPEI THE JET LANDED THERE SAFELY AND THE HIJACKER WAS ARRESTED NO PASSENGERS WERE HURT THE INCIDENT MARKED THE THIRD HIJACKING OF A CHINESE PLANE TO TAIWAN SINCE APRIL IN THE OTHER INCIDENTS THE CHINESE AIRPLANES ALSO LANDED SAFELY IN TAIPEI WITH NO HARM TO PASSENGERS UNTIL RECENTLY CHINESE AIR CREWS WERE ORDERED TO STOP HIJACKINGS AT ALMOST ANY COST THE UNOFFICIAL POLICY SOMETIMES LED TO CRASH LANDINGS OR CLOSE CALLS AS PILOTS FOUGHT WITH HIJACKERS IN OCTOBER 1991 A LONE HIJACKER DEMANDED TO BE FLOWN TO TAIWAN BUT THE PILOT FLEW TO CANTON INSTEAD DURING A FIGHT THAT ERUPTED BETWEEN THE CREW AND THE HIJACKER THE XIAMEN AIRLINES BOEING 737 VEERED FROM THE RUNWAY AND CRASHED INTO A CHINA SOUTHERN AIRLINES BOEING 757 KILLING 127 PEOPLE ONE IN EIGHT UGANDANS IS INFECTED WITH THE VIRUS THAT CAUSES AIDS THE HEAD OF UGANDA'S AIDS CONTROL PROGRAM SAID MOST OF THE POPULATION IS IN DANGER OF DYING FROM THE DISEASE GERMANY INVITED MALAYSIAN ENTREPRENEURS TO SET UP SMALL HOTELS AND TEXTILE INDUSTRIES IN WHAT WAS EAST GERMANY SOUVENIRS ON SALE IN CHINA FOR THE CENTENNIAL OF MAO TSETUNG'S BIRTH INCLUDE GOLD AND DIAMOND PENDANTS PRICED AT 10500 EACH 9308170017 930817 PFIZER TRANSFERS SHARES INTO FUND NEW YORK PFIZER INC SAID IT TRANSFERRED 10 MILLION OF ITS COMMON SHARES INTO A TRUST FUND TO USE IN MEETING THE COMPANY'S FUTURE OBLIGATIONS FOR EMPLOYEE BENEFIT PLANS THE COMPANY SAID THE AUTHORIZED BUT UNISSUED SHARES PLACED IN THE TRUST FUND WILL EVENTUALLY BE USED TO FUND A NUMBER OF BENEFIT PLANS PRINCIPALLY THE COMPANY'S STOCK OPTION PLAN PFIZER A PHARMACEUTICAL AND HEALTH CARE CONCERN HAS ABOUT 317 MILLION COMMON SHARES OUTSTANDING 9308170016 930817 TECHNOLOGY & HEALTH WARNERLAMBERT AGREES TO FDA DECREE TO HALT MANUFACTURE OF CERTAIN DRUGS BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WARNERLAMBERT CO IN A CONSENT DECREE WITH THE FOOD AND DRUG ADMINISTRATION AGREED TO STOP MAKING CERTAIN DRUGS UNTIL IT CAN DEMONSTRATE IT HAS IMPROVED ITS MANUFACTURING PRACTICES THE DECREE FILED IN FEDERAL DISTRICT COURT IN NEW JERSEY ALLOWS THE COMPANY TO CONTINUE MAKING AND SHIPPING MORE THAN A DOZEN DRUGS THE FDA CONSIDERS MEDICALLY NECESSARY AND THAT WOULDN'T OTHERWISE BE AVAILABLE PROVIDED CERTAIN CONDITIONS ARE MET THEY INCLUDE DILANTIN USED FOR TREATING EPILEPSY AND NITROSTAT USED BY HEART PATIENTS DRUGS THAT AREN'T CONSIDERED MEDICALLY NECESSARY AND THAT FACE MANUFACTURING HALTS CAN BE SHIPPED FROM INVENTORY IN CERTAIN PLANTS UNTIL THE COMPANY HAS SATISFIED THE FDA'S CONCERNS IN A STATEMENT WARNERLAMBERT SAID THAT SALES LOSSES ESTIMATED AT ABOUT 150 MILLION THIS YEAR SHOULD PUT 1993 REVENUE IN THE RANGE OF 59 BILLION THE LOSSES ARE EXPECTED TO RESULT FROM THE DISCONTINUATION OF SOME DRUGS AND THE INTERRUPTIONS IN DISTRIBUTION UNDER THE DECREE WARNERLAMBERT AGREED TO HIRE INDEPENDENT EXPERTS TO EVALUATE MANUFACTURING RECORDS AND OTHER DATA SUBMIT CERTIFICATION THAT PRODUCTS SHIPPED FROM ITS FACILITIES MEET APPLICABLE STANDARDS AND IMPROVE TRAINING OF LABORATORY PERSONNEL THE PLANTS ARE IN MORRIS PLAINS NJ LITITZ PA ROCHESTER MICH HOLLAND MICH VEGA BAJA PUERTO RICO AND FAJARDO PUERTO RICO THE DECREE RESULTED FROM A SERIES OF PLANT INSPECTIONS BY THE FDA SINCE DECEMBER 14 WARNERLAMBERT PRODUCTS HAVE BEEN RECALLED FOR FAILURE TO COMPLY WITH THE FDA'S STANDARDS FOR MANUFACTURING PRACTICES AND PRODUCT QUALITY THE COMPANY SAID IT HAS ESTABLISHED NEW MANUFACTURING PROCEDURES BEEFED UP TRAINING FOR EMPLOYEES WITH COMPLIANCE RESPONSIBILITY AND INCREASED ITS COMPLIANCE STAFF IT HAS NOTIFIED 350000 PHYSICIANS PHARMACISTS RETAILERS AND WHOLESALERS OF THE AGREEMENT THE FDA SAID IT WILL CONTINUE TO INSPECT PLANTS AND EXAMINE MANUFACTURING AND TESTING RECORDS WARNERLAMBERT WILL PAY THE FDA'S COST OF OVERSEEING THE COMPANY AND COSTS ASSOCIATED WITH ANY FAILURE TO LIVE UP TO THE DECREE SUCH AS A PRODUCT RECALL PATIENTS MUST HAVE CONFIDENCE THAT THE DRUGS THEY TAKE ARE PROPERLY MADE SAID FDA COMMISSIONER DAVID KESSLER WE WILL CONTINUE TO WORK CLOSELY WITH WARNERLAMBERT TO ENSURE THAT ITS PRODUCTS MEET THE APPROPRIATE STANDARDS OTHER WARNERLAMBERT DRUGS THAT WILL CONTINUE TO BE MANUFACTURED ARE CELONTIN AND ZARONTIN FOR TREATING SEIZURES CHLORAMPHENICOL INJECTION AN ANTIBIOTIC CHOLEDYL FOR ASTHMA HUMATIN AN ANTIBIOTIC KETALAR AN ANESTHETIC AGENT LOESTRIN 1/20 FOR ORAL CONTRACEPTION LOPID FOR CHOLESTEROL DISORDERS MILONTIN FOR SEIZURES NARDIL FOR DEPRESSIVE DISORDERS AND NIPENT FOR TREATING HAIRY CELL LEUKEMIA IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE WARNER STOCK CLOSED AT 66125 UP 2 9308170015 930817 WHO'S NEWS PRIME MEDICAL SERVICES INC PRIME MEDICAL SERVICES INC AUSTIN TEXAS MICHAEL MADLER WAS NAMED TO THE NEWLY CREATED POSITION OF CHIEF OPERATING OFFICER FOR THIS PROVIDER OF NONMEDICAL MANAGEMENT SERVICES MR MADLER 34 YEARS OLD WAS PREVIOUSLY CHIEF OPERATING OFFICER AT AMERICAN HEALTH SERVICES CORP AN OPERATOR OF IMAGING SERVICES AND WAS GENERAL MANAGER OF PRIME'S IMAGING DIVISION UNTIL 1991 JACKIE C MAJORS REMAINS THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER 9308170014 930817 BUSINESS BRIEF TOYS R' US INC SECONDQUARTER NET INCOME ROSE 85 TO 355 MILLION TOYS R US INC REPORTED SECONDQUARTER NET INCOME ROSE 85 REFLECTING STRONGER MARGINS FROM A SHIFT IN THE MIX OF PRODUCTS AND TIGHTER INVENTORY CONTROL SALES ROSE 54 BUT SAMESTORE SALES IN THE US SLIPPED 19 FROM A YEAR EARLIER THE PARAMUS NJ TOY RETAILER POSTED NET OF 355 MILLION OR 12 CENTS A SHARE ON SALES OF 132 BILLION A YEAR EARLIER PROFIT WAS 327 MILLION OR 11 CENTS A SHARE ON SALES OF 125 BILLION THE COMPANY ALSO SAID IT PLANS TO OPEN AT LEAST 105 TOY STORES THIS YEAR INCLUDING 65 IN INTERNATIONAL MARKETS IT SAID SALES IN EUROPEAN STORES ROSE ON A COMPARABLESTORE BASIS BUT THAT CANADA HAD REFLECTED THE SAME DOWNWARD TREND REPORTED IN US SALES 9308170013 930817 TECHNOLOGY BELLCORE WANTS TO GIVE UP ITS PHONE NUMBERING DUTY LIVINGSTON NJ BELL COMMUNICATIONS RESEARCH CORP THE RESEARCH ARM OF THE REGIONAL BELL COMPANIES WANTS OUT OF THE TELEPHONE NUMBERING BUSINESS IN A LETTER TO FEDERAL COMMUNICATIONS COMMISSION CHAIRMAN JAMES QUELLO BELLCORE PRESIDENT GEORGE HEILMEIER SAID BELLCORE NO LONGER WANTS TO ADMINISTER THE NORTH AMERICAN NUMBERING PLAN THE MASTER PLAN FOR HANDING OUT AREA CODES AND TELEPHONE CARRIER IDENTIFICATION CODES MR HEILMEIER CITED CHANGES IN THE INDUSTRY AND AN INCREASING NUMBER OF CLAIMS WITHOUT BASIS THAT BELLCORE MIGHT FAVOR THE BELL COMPANIES OR LOCAL PHONE COMPANIES THE COMBINATION HE SAID HAS CONVINCED BELLCORE AND ITS OWNERS THAT IT WOULD BE WISE TO ESTABLISH A PLAN FOR TRANSFERRING ADMINISTRATION OF THE NUMBERING PLAN THE TRANSITION IS EXPECTED TO TAKE A YEAR TO 18 MONTHS MR HEILMEIER SAID 9308170012 930817 FINANCING BUSINESS CAMBRIDGE SHOPPING CENTRES LTD CAMBRIDGE SHOPPING CENTRES LTD TORONTO SAID IT PLANS TO RAISE AS MUCH AS C250 MILLION US1901 MILLION IN A RIGHTS OFFERING THE REALESTATE CONCERN SAID IT WILL ISSUE ONE RIGHT FOR EACH COMMON AND SECOND PREFERRED SHARE OUTSTANDING NINE RIGHTS WILL ALLOW THE PURCHASE OF FIVE COMMON SHARES AT C14 A SHARE HOLDERS OF THE COMPANY'S CONVERTIBLE DEBENTURES WHO ALSO HOLD RIGHTS WILL BE ALLOWED TO EXCHANGE THEIR DEBENTURES AS PAYMENT FOR COMMON SHARES DONALD PRIDDLE CHIEF FINANCIAL OFFICER SAID THAT BECAUSE OF THE CONVERTIBLE DEBENTURE OPTION THE COMPANY WILL LIKELY RAISE IN CASH ONLY A FRACTION OF THE MAXIMUM C250 MILLION THE C263 MILLION IN CONVERTIBLE DEBENTURES OUTSTANDING WILL LIKELY BE REDUCED SHARPLY HE ADDED CAMBRIDGE HAD 277 MILLION SHARES OUTSTANDING AT LAST REPORT AND THE SHARES CLOSED AT C15625 YESTERDAY ON THE TORONTO STOCK EXCHANGE 9308170011 930817 BUSINESS BRIEF CONSOLIDATED STORES CORP CLOSEOUT RETAILER EXPECTS TO MEET PROFIT PROJECTIONS CONSOLIDATED STORES CORP CITING HIGHER SALES AND MARGINS SAID IT WILL MEET PROJECTIONS THAT IT WILL EARN 90 CENTS TO 95 CENTS A SHARE IN THE YEAR ENDING JAN 31 1994 THE COLUMBUS OHIO CHAIN OF SPECIALTY CLOSEOUT RETAIL STORES EARNED 371 MILLION OR 78 CENTS A SHARE ON SALES OF 9293 MILLION IN FISCAL 1993 CONSOLIDATED SAID IT IS MARKING DOWN FEWER ITEMS AND SELLING MORE HIGHMARGIN MERCHANDISE 9308170010 930817 CREDIT RATINGS CIGNA PROTESTS RATING BY S&P WITHDRAWS AGENCY'S DOWNGRADE PHILADELPHIA UNHAPPY WITH A RATING DOWNGRADE FROM STANDARD & POOR'S CORP CIGNA CORP HAS TAKEN THE UNUSUAL STEP OF HAVING THE RATING WITHDRAWN CIGNA SAYS IT WITHDREW THE RATING TO PROTEST WHAT IT CONSIDERS AN UNFAIR EVALUATION BY THE RATING AGENCY INDUSTRY ANALYSTS SAY THE WITHDRAWAL SENDS A BAD MESSAGE AND COULD MAKE IT HARDER FOR CIGNA TO ATTRACT NEW BUSINESS BUT WON'T HAVE MAJOR IMPLICATIONS FOR THE INSURER I HAVEN'T HEARD OF THIS BEFORE FROM A MAJOR COMPANY SAID SALOMON BROTHERS ANALYST MICHAEL FRINQUELLI I CHARACTERIZE IT AS STRANGE RATHER THAN SIGNIFICANT LAST WEEK S&P LOWERED THE CLAIMSPAYING ABILITY RATING OF CIGNA'S PROPERTY AND CASUALTY OPERATION TO TRIPLEB FROM SINGLEAPLUS S&P CITED THE COMPANY'S EXPOSURE TO FURTHER LOSSES IN THE BUSINESS THAT HAS BEEN UNPROFITABLE IN RECENT YEARS AM BEST CO AND MOODY'S INVESTORS SERVICE INC TWO OTHER RATING AGENCIES RATED CIGNA'S PROPERTY AND CASUALTY BUSINESS RELATIVELY HIGHER THAN S&P AM BEST'S RATING WAS SINGLEAMINUS MOODY'S RATING WAS SINGLEA2 A CIGNA SPOKESMAN SAID WE DON'T THINK THE S&P RATING GIVES ADEQUATE WEIGHT TO THE STEPS THAT HAVE BEEN TAKEN TO IMPROVE THE OPERATING PERFORMANCE CIGNA RECENTLY BROUGHT IN A NEW MANAGEMENT TEAM TO IMPROVE RESULTS WE THINK THAT OTHERS WHO ARE FAMILIAR WITH OUR SITUATION RECOGNIZE OUR FINANCIAL STRENGTH THE SPOKESMAN SAID S&P WILL CONTINUE TO RATE CIGNA'S DEBT AND ITS LIFE INSURANCE OPERATION RATING AGENCIES RATE COMPANIES AT THE INVITATION OF COMPANIES' MANAGEMENT COMPANIES OF SIZE COMPARABLE TO CIGNA PAY ABOUT 30000 FOR EACH RATING 9308170009 930817 BUSINESS BRIEF SOTHEBY'S NET ROSE 48 IN 2ND QUARTER DIVIDEND MAY BE CUT NEW YORK SOTHEBY'S HOLDINGS INC REPORTED SECONDQUARTER NET INCOME CLIMBED 48 FROM A YEAR AGO CHIEFLY ON IMPROVING MARKETS IN IMPRESSIONIST AND CONTEMPORARY ART AND JEWELRY BUT OFFICIALS OF THE NEW YORK AUCTION GIANT ALSO HINTED THAT A DIVIDEND CUT MIGHT BE LIKELY LATER THIS WEEK SOTHEBY'S NET INCOME ROSE TO 166 MILLION OR 30 CENTS A SHARE IN THE QUARTER FROM 112 MILLION OR 20 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 12 TO 874 MILLION FROM 779 MILLION THERE'S BEEN A REAL IMPROVEMENT IN THE ECONOMICS OF THE BUSINESS SAID MICHAEL A AINSLIE SOTHEBY'S PRESIDENT WE'RE SEEING A SIGNIFICANT UPTICK IN CONFIDENCE IN THE ART MARKET AMONG SELLERS SOTHEBY'S STOCK ROSE 50 CENTS ON THE NEWS TO CLOSE AT 1150 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING BUT SOTHEBY'S SHARES HAD BEEN FALLING SINCE THE COMPANY'S ANNUAL MEETING IN JUNE ON EXPECTATIONS OF A DIVIDEND CUT SOTHEBY'S STOCK HIT ITS HIGH FOR THE YEAR JUNE 1 CLOSING AT 14875 THE COMPANY'S QUARTERLY DIVIDEND IS 15 CENTS A SHARE IN 1992 SOTHEBY'S POSTED PERSHARE EARNINGS OF SEVEN CENTS AND PAID DIVIDENDS OF 60 CENTS A SHARE MR AINSLIE SAID THAT WHEN THE BOARD MEETS THURSDAY THE DIVIDEND WILL BE REVIEWED IN THE CONTEXT OF CURRENT EARNINGS IN THE FIRST HALF OF 1993 SOTHEBY'S NET INCOME MORE THAN DOUBLED TO 114 MILLION OR 21 CENTS A SHARE ON AUCTION SALES OF 6352 MILLION IN THE YEAREARLIER PERIOD SOTHEBY'S REPORTED NET OF 55 MILLION OR 10 CENTS A SHARE ON SALES OF 5677 MILLION A DISPROPORTIONATE AMOUNT OF SOTHEBY'S BUSINESS COMES IN THE SECOND AND FOURTH QUARTERS LOSSES ARE COMMON IN THE FIRST AND THIRD QUARTERS 9308170007 930817 CORPORATE FOCUS ALLIEDSIGNAL'S CHAIRMAN OUTLINES STRATEGY FOR GROWTH HE TRIES NEW MANAGEMENT AND MANUFACTURING APPROACHES TO BOOST EFFICIENCY BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL CHAIRMAN LAWRENCE A BOSSIDY'S RECENT DISCUSSION OF HOW HE PLANS TO INCREASE PROFITS AT ALLIEDSIGNAL INC WAS THE KIND OF TALK THAT USUALLY DRAWS CAUTIOUS SKEPTICISM WHEN MR BOSSIDY SPEAKS HOWEVER WALL STREET LISTENS AND ACTS EVEN THOUGH ANALYSTS PROFESSED TO FIND NOTHING NEW IN HIS PLANS THE STOCK JUMPED 250 TO 71375 ON THE DAY HE SPOKE TO THEM LATE LAST MONTH THE SAME DAY THE CONCERN REPORTED RECORD SECONDQUARTER PROFIT OF 170 MILLION MR BOSSIDY WILL DELIVER SAYS DAVID PIZZIMENTI AN ANALYST AT NOMURA RESEARCH INSTITUTE WHO SPEAKS FOR THE FAITHFUL IF YOU LOOK AT THE COMPANY'S PERFORMANCE SO FAR HE HAS MORE THAN DELIVERED SINCE BECOMING CHIEF EXECUTIVE OFFICER TWO YEARS AGO THE FORMER VICE CHAIRMAN OF GENERAL ELECTRIC CO HAS BUILT CREDIBILITY BY AGGRESSIVELY SLASHING COSTS THROUGH CLOSING AND CONSOLIDATING PLANTS ALLIEDSIGNAL IS PRODUCING IMPRESSIVE EARNINGS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY ALLIEDSIGNAL STOCK FELL 125 CENTS TO CLOSE AT 7275 MORE THAN DOUBLE THE 3325 CLOSE THE DAY BEFORE MR BOSSIDY TOOK OVER ON JULY 1 1991 SUCCEEDING EDWARD HENNESSY JR NOW COMES A MORE DAUNTING CHALLENGE MOTIVATING THE PAREDDOWN WORK FORCE OF 88000 EMPLOYEES TO EMBRACE NEW MANAGEMENT AND MANUFACTURING APPROACHES IN AN ORGANIZATION LONG CRITICIZED FOR LACKING VISION AND PAYING SCANT ATTENTION TO COST AND CUSTOMERS MR BOSSIDY PROMISES ANNUAL EARNINGS GROWTH OF 13 TO 17 THROUGH 1995 EVEN THOUGH HE SAYS SOME OF THE MORRIS TOWNSHIP NJ COMPANY'S IMPORTANT MARKETS WILL REMAIN SLUGGISH THE COMPANY MAKES AEROSPACE AND AUTOMOTIVE PRODUCTS AND ENGINEERED MATERIALS IN AN INTERVIEW MR BOSSIDY SAYS HALF THE GROWTH WILL COME FROM PRODUCTIVITY GAINS AND THE REST FROM ACQUISITIONS MUCH OF THE BOTTOMLINE IMPROVEMENT DRIVING THE STOCK PRICE HAS COME FROM A COMPANYWIDE RESTRUCTURING INITIATED IN OCTOBER 1991 THAT PLAN HAS COST 880 MILLION IN CHARGES AGAINST EARNINGS COVERING PLANT CLOSINGS AND THE CUTTING OF ABOUT 13000 JOBS MR BOSSIDY SAYS THAT ALTHOUGH RESTRUCTURING IS NEVER COMPLETE MOST OF IT IS NOW DONE WE HAVE GOTTEN RID OF THE FAT HE SAYS THE FOCUS NOW SAYS MR BOSSIDY IS ON WAYS TO MORE QUICKLY BRING PRODUCTS TO MARKET AND RESPOND TO CUSTOMER ORDERS AND TO CUT MATERIALS COSTS SINCE COMING TO ALLIEDSIGNAL MR BOSSIDY REFLECTING HIS GE BACKGROUND HAS BEEN EMPHASIZING CULTURAL CHANGE HE URGES A MOVE FROM BEING INTERNALLY FOCUSED TO CUSTOMER FOCUSED FROM A VERTICALLY ORGANIZED TO A HORIZONTALLY ORGANIZED STRUCTURE IN WHICH PEOPLE WITH DIFFERENT DUTIES WORK AS A TEAM AND FROM MANAGING EMPLOYEES TO LEADING AND MOTIVATING THEM THE COMPANY IS ABOUT TO COMPLETE AN AMBITIOUS FIRST STEP TOWARD THOSE GOALS BY THE END OF THIS YEAR EACH EMPLOYEE FROM JANITOR TO THE CHAIRMAN WILL HAVE ATTENDED A FOURDAY TRAINING COURSE AT THESE SESSIONS WORKERS ORGANIZED IN TEAMS ANALYZE THEIR BUSINESS UNITS ARTICULATE GOALS AND LEARN TO RESOLVE BUSINESS PROBLEMS WE MADE SURE THAT THE PROBLEMS WERE ACTUAL BUSINESS ISSUES AND NOT HOW TO MOVE A DRINKING FOUNTAIN OR PAINT A YELLOW LINE ON THE PARKING LOT SAYS JAMES SIERK SENIOR VICE PRESIDENT OF QUALITY AND PRODUCTIVITY AT ALLIEDSIGNAL HE SAYS THE EXERCISE HAS ALREADY GENERATED SOLUTIONS BUT ITS BROADER GOAL WAS TO MOTIVATE MR SIERK SAYS THE COMPANY SURVEYED EMPLOYEE ATTITUDES TO ASSESS THE SESSIONS' INFLUENCE IT FOUND THAT THE EMPLOYEES HAVE ADOPTED THE VISION MR BOSSIDY ARTICULATED THAT THE CONCERN NEEDS TO CHANGE FROM A VERY AVERAGE COMPANY TO A PREMIER COMPANY HE SAYS THE NEXT STEP IS TO MAKE CHANGES ON THE FACTORY FLOOR THAT WILL YIELD THE PRODUCTIVITY GAINS MR BOSSIDY IS PROMISING TO DO THAT MR SIERK SAYS THE COMPANY HAS MAPPED OUT EVERY STEP OF ITS MANUFACTURING PROCESSES THE DETAILS ARE DEPICTED ON BIG POSTERS PINNED TO FACTORY WALLS ONE IMMEDIATE RESULT WE FOUND THAT ACTUAL WORK WAS HAPPENING 10 TO 20 OF THE TIME WE WERE SPENDING TO MAKE A PRODUCT THE REST WAS BEING SPENT ON WAITING FOR MATERIALS TO ARRIVE PAPERS TO BE SIGNED SAYS MR SIERK FOR INSTANCE IT WAS TAKING TWO WEEKS FOR A PART TO MOVE FROM THE RECEIVING DOCK TO THE STORE ROOM HE SAYS THAT TIME HAS BEEN REDUCED TO TWO TO THREE HOURS EVEN A TASK AS SIMPLE AS TAKING AN ORDER AND PROCESSING IT WAS TAKING A WEEK IT NOW TAKES TWO DAYS THE GOAL IS TO DO IT IN ONE DAY AND IN SOME OPERATIONS IN A MATTER OF HOURS MR SIERK SAYS MEANWHILE THE COMPANY IS TRYING TO CUT MATERIALS COSTS WHICH REPRESENT 60 OF TOTAL COSTS BY DRASTICALLY REDUCING ITS SUPPLIERS SINCE THE BEGINNING OF THIS YEAR ALLIEDSIGNAL HAS CUT ITS SUPPLIERS TO 4600 FROM 7500 AND EXPECTS TO TRIM THEM TO 3200 BY THE END OF 1994 RAYMOND STARK STAFF VICE PRESIDENT OF MATERIALS MANAGEMENT AT THE COMPANY SAYS WHAT MAKES ALLIEDSIGNAL'S EFFORT STAND OUT IS THE SPEED WITH WHICH WE ARE DOING IT FOR THE YEAR ENDING THIS SEPTEMBER THE MOVE WILL SAVE 100 MILLION A YEAR HE ESTIMATES ADDITIONALLY ALLIEDSIGNAL EXECUTIVES SAY THEY ARE COSSETING CUSTOMERS IN WAYS THEY HADN'T BEFORE IN THE CHEMICALS BUSINESS COMPANY ENGINEERS AND MARKETERS ARE ASKING CUSTOMERS WHAT VARIATIONS OF CHEMICALS IT SHOULD DEVELOP IN ITS AEROSPACE BUSINESS ALLIEDSIGNAL HAS TEAMED WITH NORTHWEST AIRLINES AND OTHER CUSTOMERS TO LEARN HOW IT CAN CUT REPAIR TIME FOR AUXILIARY ENGINES IT MAKES MR SIERK SAYS IT WILL BE A YEAR OR SO BEFORE THESE ACTIONS WILL PAY OFF FULLY AS FOR ACQUISITIONS ALLIEDSIGNAL SINCE LAST YEAR HAS BOUGHT SIX BUSINESSES WITH COMBINED SALES OF ABOUT 500 MILLION THE LATEST IS THE PROPOSED 195 MILLION ACQUISITION OF SUNDSTRAND CORP'S COMMERCIAL AVIONICS BUSINESS MR BOSSIDY SAYS THE ACQUISITIONS HAVE BEEN SMALL SO THAT ALLIEDSIGNAL COULD LEARN HOW TO ASSIMILATE NEW BUSINESSES AND MAKE THEM PROFITABLE PROMPTLY AS THE COMPANY GROWS IT WILL CONSIDER BUYING COMPANIES WITH SALES IN THE RANGE OF 500 MILLION HE SAYS MR BOSSIDY ADDS THAT THE COMPANY HAS ABOUT 6 BILLION IN CASH AND CREDIT TO SPEND ON ACQUISITIONS CAPITAL PROJECTS AND RESEARCH AND DEVELOPMENT OVER THE NEXT THREE YEARS WE ARE CONSTANTLY SEARCHING FOR THE BEST WAY TO USE THAT 6 BILLION HE SAYS MR BOSSIDY SAYS SEVERAL OF THE COMPANY'S MARKETS ARE WEAK HE PREDICTS A SLOW GROWTH ECONOMY IN THE US AND EUROPE OVER THE NEXT THREE YEARS THAT MEANS PRICING WILL BE DIFFICULT TO OBTAIN HE SAYS ALLIEDSIGNAL'S AEROSPACE BUSINESS IS SUFFERING FROM A SHARP DECLINE IN MILITARY AND COMMERCIAL AIRCRAFT BUSINESS AND A CONTINUING RECESSION IN EUROPE IS HURTING THE COMPANY'S AUTOMOTIVE BUSINESS THERE DESPITE THESE CONCERNS MR BOSSIDY SAYS HE'S COMFORTABLE WITH HIS EARLIER PROJECTION THAT THE COMPANY WOULD POST EARNINGS OF BETWEEN 450 AND 475 A SHARE FOR THIS YEAR COMPARED WITH THE 380 A SHARE IT EARNED IN 1992 BEFORE CHARGES RELATED TO ACCOUNTING CHANGES 9308170006 930817 WARREN BUFFETT SEEKS BIGGER SALOMON STAKE BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WARREN BUFFETT QUIT HIS POST AS SALOMON INC CHAIRMAN AND CHIEF EXECUTIVE 14 MONTHS AGO BUT THE BILLIONAIRE OMAHA NEB INVESTOR STILL IS MAKING WAVES AT THE BIG WALL STREET TRADING FIRM MR BUFFETT'S BERKSHIRE HATHAWAY INC IS SEEKING CLEARANCE FROM FEDERAL REGULATORS THAT WOULD ALLOW THE COMPANY TO LIFT ITS SALOMON STAKE TO 2499 ACCORDING TO A SECURITIES AND EXCHANGE COMMISSION FILING BERKSHIRE HATHAWAY NOW HOLDS 143 OF SALOMON'S VOTING SHARES IN THE FORM OF CUMULATIVE CONVERTIBLE PREFERRED STOCK THE NEWS BOOSTED SALOMON'S STOCK UNDERSCORING HOW INVESTORS REVERE MR BUFFETT'S INVESTMENT SAVVY SALOMON SURGED 225 A SHARE OR 5 TO 48 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING ON THREE TIMES NORMAL VOLUME THE STOCK HAS JUMPED 20 SINCE JULY 30 IT NOW TRADES AT ITS HIGHEST LEVEL IN SEVEN YEARS SOME OF SALOMON'S BIGGEST FANS WERE CHEERED BY THE BUFFETT NEWS IT'S GOT TO MAKE YOU MORE COMFORTABLE OWNING THE STOCK SAID MICHAEL PRICE CHAIRMAN OF THE 6 BILLION MUTUAL SERIES FUND GROUP WHICH OWNS ABOUT 35 MILLION SALOMON SHARES DESPITE ITS RECENT SURGE SALOMON IS GOING A FAIR BIT HIGHER PREDICTS MR PRICE WHO HAS ADDED TO HIS SALOMON HOLDINGS IN THE PAST FEW WEEKS HE SAYS SALOMON IS A PRETTY WELL RUN PLACE WITH A DEEP BENCH BUT SOME ANALYSTS ARE FAR MORE CAUTIOUS THEY WORRY ABOUT SALOMON'S ZIGZAGGING EARNINGS THE COMPANY EARNED A RECORD 433 MILLION IN THE SECOND QUARTER AFTER A 102 MILLION LOSS IN THE FIRST QUARTER DEAN EBERLING A BROKERAGE ANALYST AT LEHMAN BROTHERS INC WITH A NEUTRAL RATING ON SALOMON SAYS HE WOULD RATHER OWN A FIRM WITH GLOBAL FOOTING AND A BROADER MIX OF REVENUE AND PROFIT BERKSHIRE HATHAWAY SALOMON'S LARGEST SHAREHOLDER SAID IN ITS FILING THAT THE PURPOSE OF ANY PURCHASES WILL BE FOR INVESTMENT MR BUFFETT DECLINED TO COMMENT A BERKSHIRE SPOKESWOMAN SAID ONLY THAT THE FILING SPEAKS FOR ITSELF BERKSHIRE INTENDS TO RAISE ITS SALOMON STAKE TO AT LEAST 15 ACCORDING TO THE FILING IF THE FEDERAL TRADE COMMISSION AND THE JUSTICE DEPARTMENT APPROVE BERKSHIRE THEN WILL BE ABLE TO LIFT ITS HOLDINGS TO AS MUCH AS 2499 UNDER THE HARTSCOTTRODINO ACT INSTITUTIONAL INVESTORS ARE REQUIRED TO SEEK ANTITRUST CLEARANCE FROM THE FTC OR JUSTICE DEPARTMENT BEFORE THEY CAN BUY MORE THAN 15 OF A COMPANY FOR INVESTMENT PURPOSES MR BUFFETT WHO HAS A REPUTATION AS ONE OF THE NATION'S MOST ASTUTE LONGTERM INVESTORS BOUGHT 700 MILLION OF SALOMON'S PREFERRED SHARES JUST BEFORE THE OCTOBER 1987 STOCKMARKET CRASH AND HAS BEEN COLLECTING A FAT ANNUAL DIVIDEND OF 9 SALOMON'S FORMER CHAIRMAN JOHN GUTFREUND SOUGHT OUT MR BUFFETT TO HEAD OFF A POTENTIAL TAKEOVER CHALLENGE BY REVLON GROUP INC'S RONALD PERELMAN UNDER THE 1987 AGREEMENT MR BUFFETT ISN'T ALLOWED TO RAISE HIS STAKE TO ABOVE 20 OF SALOMON'S VOTING STOCK UNTIL AFTER OCTOBER 1994 HE WOULD NEED APPROVAL FROM SALOMON'S BOARD TO LIFT HIS HOLDINGS ABOVE 20 BEFORE THEN HIS CURRENT PREFERRED HOLDINGS ARE EXERCISABLE INTO COMMON AT 38 A SHARE IN 1987 MR BUFFETT SAID OF HIS STAKE IT WON'T GO DOWN AND I DON'T EXPECT IT TO GO UP TO PROTECT HIS SALOMON HOLDINGS MR BUFFETT BECAME INTERIM CHAIRMAN IN AUGUST 1991 AFTER MR GUTFREUND WAS FORCED TO STEP DOWN AMID THE COMPANY'S TREASURYAUCTION BIDDING SCANDAL MR BUFFETT RELINQUISHED HIS SALOMON POSTS IN JUNE 1992 TO ROBERT DENHAM A LONGTIME ASSOCIATE AND CORPORATE LAWYER IN BERKSHIRE HATHAWAY'S 1992 ANNUAL REPORT MR BUFFETT SAID HIS SALOMON POST THOUGH FAR FROM FUN WAS INTERESTING AND WORTHWHILE HE ALSO SAID IN THE REPORT THAT IF NOT FOR THE HEROIC EFFORTS OF SEVERAL SENIOR SALOMON COLLEAGUES THE FIRM VERY PROBABLY WOULD NOT HAVE SURVIVED MR BUFFETT'S RELATIONSHIP WITH SALOMON DATES BACK TO 1976 WHEN SALOMON HELPED RESCUE GEICO CORP FROM THE BRINK OF BANKRUPTCY MR BUFFETT OWNED A SIZABLE GEICO STAKE INVESTORS TEND TO FOLLOW MR BUFFETT BECAUSE OF HIS SOCALLED VALUE APPROACH IN PICKING STOCKS WHICH FOCUSES ON FERRETING OUT UNDERVALUED ASSETS MR BUFFETT ISN'T THE ONLY SALOMON INSIDER TO SHOW INTEREST IN THE COMPANY'S SHARES LATELY DERYCK C MAUGHAN CHAIRMAN OF THE SALOMON BROTHERS INC SECURITIES UNIT SPENT 1 MILLION ON 25000 SHARES JULY 30 EIGHT DAYS AFTER THE COMPANY REPORTED RECORD QUARTERLY EARNINGS MARK ANDERSON IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9308170005 930817 INTERNATIONAL BRIEF ABBEY NATIONAL PLC RESIDENTIAL REALESTATE UNIT TO BE SOLD FOR 117 MILLION BRITISH SAVINGS BANK ABBEY NATIONAL PLC SAID IT AGREED TO SELL ITS RESIDENTIAL REALESTATE AGENCY CORNERSTONE TO TWO INDIVIDUALS FOR 8 MILLION 117 MILLION THE BUYERS BILL MCCLINTOCK AND TONY SNAREY ARE FORMER EXECUTIVES WITH ROYAL LIFE ESTATES PART OF ROYAL INSURANCE PLC THE TWO WERE BACKED BY PROVIDENT LIFE THE LIFEINSURANCE ARM OF WINTERTHUR SWISS INSURANCE CO ABBEY NATIONAL ANNOUNCED IN MARCH ITS INTENTION TO PUT THE 347OFFICE CHAIN UP FOR SALE THE LONG SLUMP IN BRITAIN'S PROPERTY MARKET HAD CREATED LOSSES AT THE UNIT AN ABBEY NATIONAL SPOKESWOMAN SAID CORNERSTONE HAD BEEN LOSING 15 MILLION A YEAR ON AVERAGE SINCE ABBEY NATIONAL ACQUIRED IT IN 1987 ABBEY NATIONAL SAID THE SALE WILL REQUIRE A 30 MILLION WRITEDOWN IN THIS YEAR'S SECOND HALF IN TRADING YESTERDAY ON LONDON'S STOCK EXCHANGE ABBEY NATIONAL CLOSED AT 400 PENCE 585 DOWN FIVE PENCE 9308170004 930817 AMERICAN EXPRESS'S BANK UNIT IS FINED IN ARAB BOYCOTT CASE WASHINGTON THE COMMERCE DEPARTMENT FINED AMERICAN EXPRESS BANK LTD 103000 FOR ALLEGEDLY BREAKING US LAWS THAT PROHIBIT COMPLIANCE WITH AN ARAB LEAGUE BOYCOTT OF ISRAEL AMERICAN EXPRESS BANK A UNIT OF NEW YORKBASED AMERICAN EXPRESS CO DIDN'T ADMIT OR DENY THE ALLEGATIONS BUT AGREED TO PAY THE CIVIL PENALTY THE BANK WAS CAREFUL TO DISTANCE ITSELF FROM THE BOYCOTT EFFORTS LEE MIDDLETON A BANK SPOKESMAN SAID THE BANK HAS HAD ONGOING BUSINESS RELATIONSHIPS WITH ISRAEL GOING BACK MANY DECADES THE BANK'S CASE IS CONSIDERED MINUTE COMPARED WITH THE ONE BROUGHT AGAINST BAXTER INTERNATIONAL INC A DEERFIELD ILL HOSPITALSUPPLY COMPANY THAT PLEADED GUILTY EARLIER THIS YEAR TO A FELONY CHARGE OF VIOLATING ANTIBOYCOTT LAWS THE DEPARTMENT ALLEGED THAT BETWEEN AUGUST 1988 AND JANUARY 1992 AMERICAN EXPRESS BANK PROVIDED LEBANON AND OMAN INFORMATION ABOUT BUSINESS RELATIONSHIPS WITH ISRAEL MR MIDDLETON SAID THE INFORMATION PROVIDED TO THE TWO COUNTRIES WAS PART OF SUPPORTING DOCUMENTS INCLUDED IN LETTERS OF CREDIT THE BANK WAS HANDLING FOR VARIOUS TRANSACTIONS HE SAID THE INFORMATION INCLUDED STATEMENTS THAT THE TRANSACTION DIDN'T INCLUDE GOODS FROM ISRAEL IN ADDITION ON 25 OCCASIONS THE BANK ALLEGEDLY FAILED TO REPORT BOYCOTTRELATED REQUESTS FROM KUWAIT THE DEPARTMENT ALLEGED THAT ONE OTHER BOYCOTTRELATED REQUEST FROM LEBANON WAS REPORTED LATE MR MIDDLETON SAID THAT THERE WAS ABSOLUTELY NO INTENT TO VIOLATE COMPLIANCE WITH US ANTIBOYCOTT REGULATIONS AND THAT THE STATEMENTS TO OMAN AND LEBANON REMAINED A PART OF THE DOCUMENTATION BY MISTAKE 9308170002 930817 CONTINENTAL PLANS TO TRIM CAPACITY 10 BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON CONTINENTAL AIRLINES SAID IT PLANS TO SHRINK CAPACITY 10 ELIMINATING 2500 JOBS AND CUTTING SOME ROUTES IN A COSTSAVING MOVE THAT IS REMINISCENT OF RECENT RETRENCHMENTS BY ITS RIVALS AND UNDERSCORES THE CONTINUING INDUSTRYWIDE SLUMP AT THE SAME TIME THE CARRIER RELEASED ITS FIRST POSTCHAPTER 11 RESULTS A LARGERTHANEXPECTED NET LOSS OF 244 MILLION OR 145 A SHARE FOR THE PERIOD OF APRIL 28 THROUGH JUNE 30 THE IRREGULAR NINEWEEK PERIOD REFLECTS THE AIRLINE'S USE OF FRESH START REPORTING UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES NOW THAT IT'S OUT OF BANKRUPTCYLAW PROCEEDINGS IN THE YEARAGO FULL QUARTER ITS PREDECESSOR COMPANY CONTINENTAL AIRLINES HOLDINGS REPORTED A NET LOSS OF 992 MILLION OR 209 A SHARE THE CUTBACKS CONTINENTAL ANNOUNCED REFLECT THE AIRLINE'S DESIRE TO HOLD ONTO ITS MANTLE AS A LOWCOST OPERATOR NOW THAT IT NO LONGER HAS BANKRUPTCY COURT PROTECTION FROM PAYING ITS BILLS AT THE SAME TIME HOWEVER CONTINENTAL IS GIVING UP AN IMPORTANT PART TO ITS CLAIM AS AN INTERNATIONAL AIRLINE BY SUSPENDING FLIGHTS TO AUSTRALIA AND NEW ZEALAND CONTINENTAL'S CHIEF FINANCIAL OFFICER DANIEL GARTON SAID THE COMPANY'S ACTIONS ARE PART OF SEVERAL STEPS THE AIRLINE EXPECTS TO TAKE TO ENSURE PROFITABILITY WE HOPE PEOPLE SEE THESE MOVES AS A COMPANY WILLING TO MAKE HARD DECISIONS MR GARTON SAID I DON'T THINK PEOPLE SHOULD SEE THIS AS THINGS ARE WORSE THAN EXPECTED THE CAPACITY CUTBACKS HE ADDED ARE CONSISTENT WITH CAPACITY REDUCTIONS OF OTHER CARRIERS INDEED CONTINENTAL IS BY NO MEANS THE FIRST AIRLINE TO ELIMINATE ROUTES PLANES AND PERSONNEL IN THE AIRLINE INDUSTRY'S SEEMINGLY ENDLESS EFFORT TO REATTAIN SUSTAINED PROFITS INDUSTRY HEAVYWEIGHTS AMERICAN AIRLINES A UNIT OF AMR CORP AND DELTA AIR LINES HAVE DONE MUCH THE SAME THING BUT CONTINENTAL HAS SLIMMED DOWN SEVERAL TIMES IN THE PAST AND NOW IS STILL TAKING BIG STEPS WHEN MANY OF ITS COMPETITORS HAVE SLOWED THEIR CUTS AND THE PACE MAY NOT LET UP THERE MAY BE OTHER POTENTIAL SCHEDULE REVISIONS OR SERVICE ENHANCEMENTS WHICH ARE BEING CONSIDERED MR GARTON SAID HE DECLINED TO ELABORATE HE DID ADD HOWEVER THAT YESTERDAY'S MOVES ARE NOT IN MY OPINION SUFFICIENT TO ENSURE PROFITABILITY BUT ARE NECESSARY TO GET US ON THE PATH THE WORK FORCE REDUCTIONS WILL COME PRIMARILY IN THE AREAS WHERE SERVICE IS BEING ELIMINATED THROUGH ATTRITION AND BY OFFERING CERTAIN WORKERS SUCH AS PILOTS FLIGHT ATTENDANTS AND GATE AGENTS LEAVES OF ABSENCE WITHOUT PAY CURRENTLY CONTINENTAL AIRLINES HAS ABOUT 42000 EMPLOYEES IN ELIMINATING INTERNATIONAL FLIGHTS TO AUSTRALIA AND NEW ZEALAND CONTINENTAL IS GIVING UP ASPIRATIONS TO BECOME A BIG PLAYER IN THE SOUTH PACIFIC IN FAVOR OF THE MORE CONSERVATIVE VIEW THAT TRAFFIC IN THAT REGION ISN'T LIKELY TO TURN AROUND SOON THE AIRLINE IS CLOSING FOUR STATIONS AND ELIMINATING FIVE ROUTES TO THAT AREA FROM HONOLULU AND GUAM CONTINENTAL SAID IT'S ALSO CLOSING ITS STATION IN VANCOUVER BRITISH COLUMBIA AND THE ONE IN PUERTO PLATA IN THE DOMINICAN REPUBLIC THUS ELIMINATING FLIGHTS FROM THOSE MARKETS IN THE US CONTINENTAL PLANS TO CLOSE ITS STATIONS IN BISMARCK AND MINOR N D AND SPOKANE WASH THE AIRLINE ALSO WILL REDUCE FLYING IN SOME MARKETS AND ELIMINATE SERVICE TO OTHERS OUT OF ITS DENVER HUB THE CARRIER ALSO SAID IT WOULD RETIRE 30 OF ITS OLDER GASGUZZLING NOISY JETS CONTINENTAL HAD SAID SEVERAL MONTHS AGO THAT IT PLANNED TO RETURN ITS OLDER BOEING CO 727 JETS TO LESSORS AS PART OF ITS REORGANIZATION PLAN THE AIRLINE WILL BEGIN ACCEPTING DELIVERY OF NEW BOEING AIRCRAFT IN JANUARY IN ITS RESULTS FOR THE SECOND QUARTER BEFORE APRIL 28 CONTINENTAL REPORTED NET INCOME OF 275 BILLION AFTER NONRECURRING CHARGES AND ONETIME GAINS PRIMARILY ON THE DISCHARGE OF DEBT THOSE RESULTS INCLUDE A WRITEOFF FOR A LOSS RESERVE FOR EASTERN AIRLINES WHICH HAD BEEN A UNIT OF PREDECESSOR COMPANY CONTINENTAL AIRLINES HOLDINGS FOR THE NINEWEEK PERIOD AFTER CHAPTER 11 CONTINENTAL HAD AN OPERATING LOSS OF 4 MILLION WHILE ITS REVENUE WAS 9759 MILLION FOR THE PERIOD BEFORE APRIL 28 CONTINENTAL'S OPERATING LOSS WAS 579 MILLION AND ITS REVENUE 4768 MILLION IN THE YEARAGO PERIOD CONTINENTAL'S REVENUE WAS 137 BILLION 9308170001 930817 LEISURE & ARTS BOOKSHELF A CRIMINOLOGIST REFLECTS BY CHRISTOPHER MANION WHEN I FIRST STARTED TEACHING A FRIEND REMARKED THAT MANY STUDENTS WOULD STUDY ETHICS ONLY TO LEARN HOW TO AVOID IT JAMES Q WILSON A MASTER OF MANY DISCIPLINES ARGUES THAT WE CANNOT DENY THE EXISTENCE OF THE MORAL SENSE FREE PRESS 313 PAGES 2295 NO MATTER WHAT DISCIPLINE WE EMPLOY FOR MUCH OF WESTERN HISTORY MR WILSON EXPLAINS PHILOSOPHY SOUGHT TO EXPLICATE THE MORE SOCIAL SIDE OF HUMAN NATURE WITHOUT DENYING ITS SELFISH AND WILDER SIDE MODERN PHILOSOPHY WITH SOME EXCEPTIONS REPRESENTS A FUNDAMENTAL BREAK WITH THAT TRADITION SINCE THAT BREAK THE VERY DISCUSSION OF MORALITY HAS COME UNDER FIRE WHY HAVE PEOPLE LOST THE CONFIDENCE WITH WHICH THEY ONCE SPOKE PUBLICLY ABOUT MORALITY WHY HAS MORAL DISCOURSE BECOME UNFASHIONABLE OR MERELY PARTISAN MR WILSON ASKS HE THINKS IT IS BECAUSE WE HAVE LEARNED THAT MORALITY HAS NO BASIS IN SCIENCE OR IN LOGIC TO DEFEND MORALITY IS TO DEFEND THE INDEFENSIBLE AMONG THE INTRIGUING ASPECTS OF THIS BOOK IS MR WILSON'S CONTENTION THAT A KEY TO OUR SENSE OF RIGHT AND WRONG CAN ACTUALLY BE LOCATED IN GENDER AND BIOLOGY WE ALREADY KNOW THAT CRIMINALITY IS IMPORTANTLY INFLUENCED BY BIOLOGICAL FACTORS INCLUDING SEX IT STANDS TO REASON THAT NONCRIMINALITY SHOULD BE INFLUENCED BY SUCH FACTORS AS WELL MR WILSON ARGUES IN THE PREFACE TO THIS FORCEFUL LUCID AND ULTIMATELY CONVINCING BOOK A PROFESSOR OF MANAGEMENT AND PUBLIC POLICY AT UCLA AND THE AUTHOR OF 12 BOOKS INCLUDING BUREAUCRACY AND THINKING ABOUT CRIME MR WILSON HAS SPENT DECADES DEALING WITH THE CRIMINAL MIND BUT IN THE MORAL SENSE HE IS LOOKING FOR AN EXPLANATION OF WHY HUMAN BEINGS WANT TO BE GOOD EVEN IF THEY SO OFTEN FAIL TRADITIONAL PHILOSOPHY OF COURSE TOOK THAT INCLINATION FOR GRANTED ARISTOTLE TAUGHT THAT ALL ACTIONS AIM AT SOME GOOD WHILE RECOGNIZING THAT IT IS POSSIBLE TO KNOW THE COURSE OF RIGHT ACTION AND STILL DO WRONG BECAUSE OF A DEFECT IN CHARACTER IN MODERN TIMES THE MORAL SENSE HOWEVER HAS COME ON HARD TIMES UNDERMINED BY RELATIVISTS CYNICS AND SCIENTISTS BUT IT STILL UNDERLIES WHAT MR WILSON CALLS A CULTURAL WAR A WAR ABOUT VALUES HE WRITES ONCE THE ISSUES WERE SLAVERY TEMPERANCE RELIGION AND PROSTITUTION TODAY THEY ARE DIVORCE ILLEGITIMACY CRIME AND ENTERTAINMENT IN FINDING A MORAL SENSE TO THESE CONTROVERSIES MR WILSON REVIVES A CONCEPT ENUNCIATED BY ADAM SMITH AND DAVID HUME AMONG OTHERS THEY USED THE TERM MORAL SENSE IN AN EFFORT TO CLARIFY WHAT ORDINARY PEOPLE MEAN WHEN THEY SPEAK OF THEIR MORAL FEELINGS AND TO EXPLAIN INSOFAR AS ONE CAN THE ORIGINS OF THOSE FEELINGS MR WILSON DEFINES IT AS AN INTUITIVE OR DIRECTLY FELT BELIEF ABOUT HOW ONE OUGHT TO ACT WHEN ONE IS FREE TO ACT VOLUNTARILY BUT HOW FREE ARE MEN AND WOMEN IN HIS ADVENTUROUS CHAPTER ON GENDER MR WILSON INSISTS THAT THERE ARE DIFFERENCES BETWEEN THE SEXES NEVER MIND CURRENTLY FASHIONABLE THOUGHTS TO THE CONTRARY MEN ARE NATURALLY MORE AGGRESSIVE SO INCLINED ACCORDING TO A GROWING BODY OF EVIDENCE BY HORMONES ENZYMES AND NEUROTRANSMITTERS WOMEN ARE MORE NOURISHING OF THE YOUNG WHILE MEN HAVE BEEN LESS IMPORTANT FOR THE SURVIVAL OF THE CHILD HE THINKS IT QUITE CLEAR THAT MOTHER NATURE WOULD MUCH PREFER TO PRODUCE ONLY GIRLS BECAUSE SHE DOES SUCH A POOR JOB OF PRODUCING BOYS IN A SURPRISING LOOK AT THE CALIFORNIA GOLD RUSH MR WILSON DESCRIBES THE NEAR HOBBESIAN WAR OF ALL AGAINST ALL THAT PREVAILED IN THE ALLMALE COMMUNITIES MUCH MORE HARMONIOUS WERE THE GOLD RUSH CENTERS WHERE MINERS MOVED WITH THEIR FAMILIES INTACT THROUGHOUT MR WILSON'S WORK SUCH VIGNETTES NUDGE US TOWARD THE CONCLUSION THAT ON THE ONE HAND THE MORAL SENSE INCLINES US TOWARD A COMMON GOOD BUT ON THE OTHER THAT INCLINATION IS SO FRAIL THAT WE MUST TAKE GREAT CARE IN ESTABLISHING CIRCUMSTANCES THAT ENCOURAGE IT IN ANOTHER PROVOCATIVE TURN HE SHOWS HOW IN THE DESCENT OF MAN DARWIN PROPOSED THE REALITY OF A MORAL SENSE A CENTURY BEFORE DEVELOPMENTAL PSYCHOLOGISTS BEGAN TO GATHER DATA THAT CONFIRMED IT TODAY RESEARCH ON SOCIABILITY HAS EVEN IDENTIFIED ONE OF THE MOST PRIMITIVE PARTS OF OUR NERVOUS SYSTEM THE CINGULATE GYRUS OF THE LIMBIC AREA OF THE BRAIN AS THE POTENTIAL REGION IN WHICH SOCIAL AS WELL AS SELFISH IMPULSES ORIGINATE WHAT PROVOKED THIS BOOK WERE THE RIOTS IN LOS ANGELES A CITY MR WILSON CLEARLY LOVES AS MUCH AS SOCRATES LOVED ATHENS WHAT STRUCK ME MOST FORCIBLY HE WRITES ABOUT THE BEHAVIOR OF THOSE WHO LOOTED AND BURNED WAS NOT THAT THEY DID IT BUT THAT INVARIABLY THE PARTICIPANTS FELT OBLIGED TO JUSTIFY IT EVEN WHEN THEY FACED NO CHANCE OF PUNISHMENT AND THUS HAD NO REASON TO EVADE IT IF THERE IS ANY TRULY UNIVERSAL MORAL STANDARD IT IS THAT EVERY SOCIETY WITHOUT EXCEPTION FEELS OBLIGED TO HAVE AND THUS TO APPEAL TO MORAL STANDARDS TODAY AMERICA SUFFERS FROM A MORAL DISSOLUTION MOST WOULD HAVE THOUGHT IMPOSSIBLE ONLY A GENERATION AGO THAT DECLINE HAS BEEN ABETTED BY THE PREVAILING INTELLECTUAL DISDAIN FOR TRADITIONAL MORAL STANDARDS A POSITION THAT OFTEN CLAIMS MODERN SCIENCE AS ITS FOUNDATION MR WILSON HAS PRODUCED A PROFOUND CHALLENGE TO THAT VIEW IN A WORK THAT COULD WELL MARK A TURNING POINT IN THE SEARCH FOR A COMMON GROUND ON WHICH TO BUILD THE GOOD SOCIETY MR MANION A SENIOR FELLOW WITH THE AMERICAN FOREIGN POLICY COUNCIL TAUGHT ETHICS AT BOSTON UNIVERSITY 9308170115 930723 THE CONDOM BRIGADE BY LAWRENCE CRINER AMERICA HAS THE HIGHEST TEENAGE PREGNANCY RATE OF ANY COUNTRY IN THE DEVELOPED WORLD LAST YEAR MORE THAN A MILLION TEENAGERS BECAME PREGNANT AND THREE MILLION CONTRACTED SEXUALLY TRANSMITTED DISEASES EVEN THESE NUMBERS DO NOT REFLECT THE HUMAN SUFFERING AND RUINED LIVES RESULTING FROM CASUAL SEX NO ONE CAN DENY THAT STRONG MEASURES ARE NEEDED TO ADDRESS THESE PROBLEMS YET THE PRESCRIPTION OF JOYCELYN ELDERS PRESIDENT CLINTON'S NOMINEE FOR SURGEON GENERAL IS CONDOM RELIEF CLEARLY THE DEBATE OVER DR ELDERS'S NOMINATION IS IN PART A DEBATE OVER THE PROPER STRATEGY FOR DEALING WITH THE EPIDEMIC IN TEENAGE PROMISCUITY AS ARKANSAS'S HEALTH DIRECTOR DR ELDERS OFTEN ATTACKED PARENTS AND FOUGHT LEGISLATORS IN HER CRUSADE FOR SCHOOLBASED CLINICS AND CONDOM DISTRIBUTION MANY FEAR THAT SHE WILL USE HER POSITION AS THE NATION'S CHIEF DOCTOR FOR SEXED EVANGELISM THEY EXPECT HER TO LEAD THE CHARGE FOR A NATIONAL COMPREHENSIVE SEX EDUCATION CURRICULUM THAT STRESSES BIRTH CONTROL SCHOOLBASED CLINICS AND THE ACCEPTABILITY OF ALTERNATIVE STYLES OF LIFE OTHER CLINTON ADMINISTRATION OFFICIALS SEEM TO BE OF LIKE MIND SOON AFTER KRISTINE GEBBIE WAS APPOINTED AIDS COORDINATOR SHE SAID ON THE FOX MORNING NEWS EVERY CHILD IN AMERICA NEEDS COMPREHENSIVE SEX EDUCATION THE GOVERNMENT MUST GIVE COMMUNITIES THE TOOLS TO EDUCATE CHILDREN PROPERLY ABOUT SEX HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA AT A CONFERENCE CONVENED BY THE NATIONAL ABORTION RIGHTS ACTION LEAGUE IN 1992 SPOKE OF THE NEED TO EDUCATE YOUNG PEOPLE FROM THE EARLIEST AGES IN MATTERS OF SEXUALITY THE CLINTON ADMINISTRATION SEEMS WELL POSITIONED TO PUSH FOR A NATIONAL SEXED CURRICULUM AND IT WILL HAVE PLENTY OF HELP A POWERFUL MOVEMENT LED BY PLANNED PARENTHOOD AND A NEW YORKBASED ORGANIZATION CALLED THE SEX INFORMATION EDUCATION COUNCIL OF THE US SIECUS IS LOBBYING HARD FOR SUCH A CURRICULUM ONLY WEEKS BEFORE MR CLINTON WAS INAUGURATED SIECUS PREPARED A TRANSITION PAPER FOR THE INCOMING ADMINISTRATION OUTLINING POLICY PRIORITIES RELATING TO SEXUALITY THE PAPER CALLED FOR THE IMMEDIATE RESTRUCTURING OF THE ADOLESCENT AND FAMILY LIFE ACT OF 1981 WHICH MANDATES FUNDING FOR ABSTINENCEBASED PROGRAMS AND IT RECOMMENDED APPROPRIATING MONEY FOR NATIONAL COMPREHENSIVE SEX EDUCATION SIECUS HAS CREATED A MODEL CURRICULUM THAT MAY WELL SERVE AS THE FRAMEWORK FOR SUCH A NATIONAL PROGRAM TO GIVE THE CURRICULUM A PUSH IT HAS ORGANIZED THE NATIONAL COALITION TO SUPPORT SEXUALITY EDUCATION A NETWORK OF 62 ORGANIZATIONS INCLUDING PUBLIC FOUNDATIONS MEDICAL ORGANIZATIONS EDUCATIONAL INSTITUTIONS AND RELIGIOUS GROUPS THE GROUP'S GOAL IS TO BRING COMPREHENSIVE SEX EDUCATION TO THE NATION'S CHILDREN BY THE YEAR 2000 THE CURRICULUM SIECUS IS PUSHING IS CALLED GUIDELINES FOR COMPREHENSIVE SEXUALITY EDUCATION K12 ALTHOUGH SOME BELIEVE IT TO BE A DOCUMENT OF SEXUAL ENLIGHTENMENT TO OTHERS IT LOOKS MORE LIKE AN AGESPECIFIC TEXT FOR SEXUAL INDOCTRINATION CHILDREN AGES FIVE THROUGH EIGHT ARE TAUGHT MASTURBATION BOTH GIRLS AND BOYS HAVE BODY PARTS THAT FEEL GOOD WHEN TOUCHED KIDS NINE THROUGH 12 ARE TOLD THAT HOMOSEXUAL LOVE RELATIONSHIPS CAN BE AS FULFILLING AS HETEROSEXUAL RELATIONSHIPS YOUNG ADOLESCENTS BETWEEN 12 AND 15 YEARS OF AGE ARE INFORMED THAT MINORS DO NOT NEED PARENTAL CONSENT TO OBTAIN CONTRACEPTIVES HIGHSCHOOL STUDENTS ARE TOLD THAT PORNOGRAPHY IS A POSITIVE SEXUAL AID SOME PEOPLE USE EROTIC PHOTOGRAPHS MOVIES OR LITERATURE TO ENHANCE THEIR SEXUAL FANTASIES WHEN ALONE OR WITH A PARTNER JAMES WILLIAMS AN OFFICIAL AT THE NATIONAL EDUCATION ASSOCIATION WHO HEADS ITS HEALTH INFORMATION NETWORK CALLS THE SIECUS CURRICULUM A LANDMARK EVENT HE ADDS NOW THERE IS A CLEAR AND APPROPRIATE GUIDE FOR TEACHERS TO USE IN PREPARING A COMPREHENSIVE SEXUALITY EDUCATION PROGRAM INCIDENTALLY THE CARNEGIE CORP HAS GIVEN MONEY TO SIECUS TO EXPAND AND PROMOTE THE GUIDELINES A NATIONAL CURRICULUM IS ONLY PART OF THE SEXED AGENDA HOWEVER BOTH PLANNED PARENTHOOD AND SIECUS ARE COMMITTED TO ESTABLISHING SCHOOLBASED CLINICS IN EACH OF THE 15000 SCHOOLDISTRICTS IN AMERICA CLINICS THAT WOULD PROVIDE CONTRACEPTIVES ABORTION REFERRAL PREGNANCY COUNSELING AND ONSITE NORPLANT IMPLANTATION CURRENTLY THERE ARE 325 SUCH SCHOOLBASED CLINICS NATIONWIDE SEXED ACTIVISTS HAVE ALSO FILED LAWSUITS TO THROTTLE ABSTINENCEBASED SEX EDUCATION IN THE PUBLIC SCHOOLS IN DUVAL COUNTY FLA FOR EXAMPLE PLANNED PARENTHOOD HAS SUED THE SCHOOL BOARD FOR ACCEPTING AN ABSTINENCEBASED CURRICULUM CALLED ME MY WORLD MY FUTURE DUVAL COUNTY IS ALLEGEDLY IN VIOLATION OF THE RIGHTTOPRIVACY PROVISION IN FLORIDA'S CONSTITUTION BECAUSE IT HAS IMPOSED A SINGLE VIEW ON STUDENTS' SEXUAL AND REPRODUCTIVE DECISIONS THIS SINGLE VIEW SUPPOSEDLY INTERFERES WITH THEIR RIGHTS TO MAKE PERSONAL INTIMATE AND PRIVATE DECISIONS WITH RESPECT TO THEIR BODIES THE DUVAL COUNTY CASE IS OBVIOUSLY A SIGNIFICANT CHALLENGE TO PARENTAL AUTHORITY PLANNED PARENTHOOD KNOWS THAT A VICTORY WILL SEND A LOUD SIGNAL TO EDUCATORS EVERYWHERE WHO FAVOR ABSTINENCEBASED EDUCATION IN SHREVEPORT LA FIVE PARENTS REPRESENTED BY A PLANNED PARENTHOOD ATTORNEY RECENTLY WON A COURT CASE AGAINST THE CADDO PARRISH SCHOOL DISTRICT FOR PRESUMABLY VIOLATING THE STATE'S SEXEDUCATION STATUTE THE LOUISIANA LAW MANDATES ABSTINENCEBASED SEX EDUCATION AND IT STATES THAT SEX EDUCATION SHALL NOT INCLUDE RELIGIOUS BELIEF ON MARCH 18 US DISTRICT COURT JUDGE FRANK THAXTON IMPOSED AN INJUNCTION LATER AMENDED ON USING FACING REALITY AN ABSTINENCEBASED CURRICULUM CITING 40 PASSAGES THAT IN HIS VIEW VIOLATED THE STATE'S PROHIBITION AGAINST TEACHING RELIGION ONE OF THE OBJECTIONABLE SENTENCES READS EMOTIONAL MATURITY COMES WHEN WE HAVE RECEIVED THE LOVE FROM OUR FAMILY FRIENDS AND SPIRITUAL SOURCES THAT MAKE US FEEL SECURE AND WHOLE THE COMPREHENSIVE SEX EDUCATION COALITION INCLUDES SUPPORTERS WITHIN THE SCHOOL SYSTEM WHO ARE MOBILIZING AS WELL A CONFERENCE HELD IN DENVER IN MAY TITLED RESPONDING DEMOCRATICALLY TO RELIGIOUS AGENDAS ATTRACTED MORE THAN 200 PUBLIC SCHOOL TEACHERS ADMINISTRATORS AND SCHOOLBOARD MEMBERS WHO PAID TO BE INSTRUCTED ON HOW TO OUTMANEUVER OPPONENTS THE SPONSOR OF THE EVENT WAS A DAYTON OHIOBASED ORGANIZATION CALLED THE INSTITUTE FOR DEVELOPMENT OF EDUCATIONAL ACTIVITIES ONE TACTIC TAUGHT AT THE DENVER CONFERENCE IN A SESSION ON HOW TO HANDLE SCHOOL BOARD MEETINGS WAS TO LIMIT THE TIME ALLOTTED TO A PARTICULAR SUBJECT SO AS TO BETTER CONTROL WHO SPEAKS AT ANOTHER SESSION INSTRUCTION WAS PROVIDED ON HOW TO MANIPULATE THE INTERVIEW PROCESS TO SCREEN OUT TEACHERS WITH RELIGIOUSRIGHT BELIEFS THE 18000MEMBER AMERICAN ASSOCIATION OF SCHOOL ADMINISTRATORS HAS JOINED THE BATTLE TOO IT HAS ISSUED AN ALERT TO ITS MEMBERS IN THE FORM OF A DOCUMENT THAT ACCUSES THE FAR RIGHT OF REEMPHASIZING FAMILY VALUES AND ANALYZING TEXTBOOKS THE AASA HAS PROVIDED SCHOOL PERSONNEL WITH 39 POINTERS ON HOW TO DEAL WITH CRITICISM INCLUDING KEEP OPEN LINES WITH THE PRESS AND PROVIDE MEDIA TRAINING FOR ADMINISTRATORS WHO WILL FIGHT THE RELIGIOUS RIGHT IN RECENT YEARS PARENTS HAVE FOUGHT BACK AGAINST SCHOOLS ATTEMPTING TO INDOCTRINATE THEIR CHILDREN ACCORDING TO PEOPLE FOR THE AMERICAN WAY A LIBERAL ORGANIZATION CHRISTIANS ASSOCIATED WITH THE FAR RIGHT BY WHICH IT MEANS WE MAY ASSUME PARENTS ORGANIZED TO SUPPORT TRADITIONAL FAMILY VALUES WON MORE THAN 30 OF THE SCHOOLBOARD ELECTIONS THEY ENTERED LAST NOVEMBER IN SHORT PRESIDENT CLINTON MAY PROVOKE A SUBSTANTIAL BACKLASH IF HE PROCEEDS WITH A NATIONAL COMPREHENSIVE SEXEDUCATION CURRICULUM TO DEAL WITH THE CRISIS IN TEENAGE PROMISCUITY AND AIDS AND FOR GOOD REASON ATTEMPTS TO IMPOSE A NATIONAL CURRICULUM AMOUNT TO A REVOCATION OF SCHOOLDISTRICT AUTONOMY EVERY SCHOOL DISTRICT COULD BE TURNED INTO A BATTLEGROUND OVER CONDOM DISTRIBUTION ALTERNATIVE LIFESTYLES SCHOOLBASED CLINICS AND THE RIGHTS OF PARENTS TO HAVE A SAY IN WHAT THEIR CHILDREN ARE BEING TAUGHT THE RECENT EXPLOSION OVER SEX EDUCATION IN THE NEW YORK CITY PUBLIC SCHOOLS IN WHICH A SCHOOLS CHANCELLOR FAVORING A SEXUALLY EXPLICIT CURRICULUM WAS SOUNDLY DEFEATED SHOULD SERVE AS A WARNING CONTRARY TO THE OPINION OF COMPREHENSIVE SEX EDUCATORS ADOLESCENTS ARE NOT WIDELY COMMITTED TO A SEXUALLY ACTIVE LIFE MARION HOWARD DIRECTOR OF THE TEEN SERVICES PROGRAM AT GRADY MEMORIAL HOSPITAL IN ATLANTA SURVEYED 1043 ADOLESCENTS AND FOUND THAT WHAT 82 MOST WANTED WAS HELP IN SAYING NO ABSTINENCEORIENTED SEX EDUCATION HAS BEEN SUCCESSFUL TOO ELAYNE BENNETT WIFE OF FORMER SECRETARY OF EDUCATION WILLIAM BENNETT HAS CREATED AN ABSTINENCEBASED PROGRAM BEST FRIENDS THAT IS USED IN FOUR WASHINGTONAREA SCHOOLS BEST FRIENDS CLAIMS THAT NONE OF THE GIRLS ENROLLED IN ITS PROGRAM HAS BECOME PREGNANT THE LESSON IT IS BY NO MEANS UNREALISTIC TO ASSUME THAT YOUNG PEOPLE CAN BE TAUGHT TO ABSTAIN THE QUESTION IS ARE WE COMMITTED TO THE BELIEF THAT THE HEALTHIEST WAY OF LIFE FOR ADOLESCENTS INVOLVES THE POSTPONEMENT OF SEXUAL RELATIONSHIPS WITH ALL THEIR PHYSICAL AND EMOTIONAL CONSEQUENCES AND ARE WE WILLING TO ASSERT THAT VIEW OR DO WE SIMPLY ACCEPT THE CURRENT RATE OF SEXUAL ACTIVITY AMONG TEENS AS INEVITABLE AND POUR MORE MONEY INTO ABORTIONS AND CONTRACEPTIVES SINCE THE 1960S CONTRACEPTIVE SERVICES AND SEX EDUCATION HAVE INCREASED ASTRONOMICALLY BUT SO HAVE TEEN PREGNANCY RATES IT WOULD BE TRULY TERRIBLE IF THE FEDERAL GOVERNMENT FOISTED A FAILED SEXEDUCATION POLICY ON OUR CHILDREN AN APPROACH THAT WILL ONLY AGGRAVATE THE PROBLEM NOT SOLVE IT MR CRINER IS ASSOCIATE SENIOR EDITOR OF THE WORLD & I MAGAZINE SEE RELATED LETTERS LETTERS TO THE EDITOR KIDS AND SEX ED WAR OF IDEOLOGIES WSJ AUG 17 1993 9307230016 YY93 MM08 9308170083 930708 ECONOMY UNIONS DISPLAY A REVIVAL OF MILITANCY BUT NEW SPIRIT MAY NOT HALT DECLINE OF THEIR INFLUENCE BY DANA MILBANK AND WENDY BOUNDS STAFF REPORTERS OF THE WALL STREET JOURNAL WORKERS USED TO SOLVE THEIR DISPUTES WITH COMPANIES BY MARCHING OFF THE JOB BUT WHEN FLIGHT ATTENDANTS AT ALASKA AIRLINES GOT INTO A TIFF WITH THE COMPANY OVER SCHEDULING AND WORK RULES THEY SELECTED A MORE EFFECTIVE WEAPON A CAMPAIGN FOR CHAOS WE ARE GOING INTO WORK EVERY DAY SAYS GAIL BIGELOW OF THE ASSOCIATION OF FLIGHT ATTENDANTS BUT AT ANY GIVEN TIME WE COULD CALL A WORK STOPPAGE IT COULD LAST A DAY OR A HALFHOUR BUT THE COMPANY WILL HAVE NO IDEA WHEN IT'S COMING IN RESPONSE THE UNIT OF ALASKA AIR GROUP HAS ORDERED AT LEAST THREE MANAGERS AND SUPERVISORS FROM HEADQUARTERS TO RIDE ON EVERY FLIGHT IN CASE OF A WORK STOPPAGE PRODUCING A SLOWDOWN AT THE UPPER LEVELS IT'S BEEN A LONG COUPLE OF WEEKS SAYS AN ALASKA AIRLINES SPOKESMAN AFTER MORE THAN A DECADE OF RETREAT UNION MILITANCY APPEARS TO BE SURGING UNIONS ARE TAKING ON EMPLOYERS WITH PUBLICITY CAMPAIGNS CREATIVE STRIKES AND SHOWS OF SOLIDARITY IN THE WORKPLACE SOME SEE THE NEW SPIRIT AS A BACKLASH AGAINST THE 1980S THAT WILL REINVIGORATE LABOR THERE'S BEEN MORE MILITANCY AT THE RANKANDFILE LEVEL SAYS JEFF FAUX PRESIDENT OF THE ECONOMIC POLICY INSTITUTE IN WASHINGTON THERE'S MORE STRESS ON THE JOB AND THAT MEANS MORE ANGER AND MILITANCY HE ATTRIBUTES THE RISE IN ACTIVISM TO A DECLINE IN REAL WAGES AND BENEFITS AND AN ASSAULT ON JOB SECURITY THAT INCLUDES THE USE OF ANTIUNION CONSULTANTS AND PERMANENT REPLACEMENTS FOR STRIKERS AT THE SAME TIME WORKERS HAVE FOUND THEIR UPWARD MOBILITY BLOCKED CREATING AN OVEREDUCATED AND RESTLESS WORK FORCE THE NEW ACTIVISM MAY OF COURSE AMOUNT TO NO MORE THAN A LAST STAND FOR LABOR ALTHOUGH US UNION MEMBERSHIP HAS SHOWN SMALL GAINS IT CONTINUES TO SHRINK AS A PROPORTION OF THE WORK FORCE TO 158 IN 1992 FROM 23 IN 1980 WORK STOPPAGES MEANWHILE FELL TO THE LOWEST LEVEL IN 45 YEARS IN 1992 ACCORDING TO THE BUREAU OF LABOR STATISTICS A LABORBACKED BILL BANNING PERMANENT REPLACEMENTS FOR STRIKING WORKERS FACES BLEAK PROSPECTS AND RECENT CONTRACT NEGOTIATIONS HAVE BROUGHT UNIONS LITTLE IMPROVEMENT IN PAY AND BENEFITS SAR LEVITAN DIRECTOR OF GEORGE WASHINGTON UNIVERSITY'S CENTER FOR SOCIAL POLICY BELIEVES UNIONS ARE MORE CONCERNED WITH DEFENDING HEALTH AND PENSION BENEFITS FOR AN AGING MEMBERSHIP THAN WITH WINNING NEW BENEFITS OR EXPANDING THEIR MEMBERSHIP I DON'T SEE MUCH OF AN OFFENSIVE HE SAYS BUT AT THE SAME TIME UNION VICTORIES IN REPRESENTATION ELECTIONS REACHED 50 LAST YEAR THE HIGHEST RATE SINCE 1984 ACCORDING TO AN ANALYSIS BY THE BUREAU OF NATIONAL AFFAIRS UNIONS ARE NOT SITTING IDLY BY SAYS ALLISON PORTER DIRECTOR OF RECRUITING FOR THE AFLCIO ORGANIZING INSTITUTE EVEN THE PROBUSINESS LABOR POLICY ASSOCIATION AGREES THERE'S INCREASED ACTIVITY THE NEW MILITANCY HAS SOME IMPORTANT DIFFERENCES FROM THE PAST UNIONS THESE DAYS ARE MORE LIKELY TO USE BOYCOTTS AND TOWN MEETINGS THAN PICKET LINES AND BASEBALL BATS IN THE OLD DAYS THE ACTIVISM WOULD HAVE MEANT MORE STRIKES BUT IN TODAY'S PROMANAGEMENT LABOR LANDSCAPE FOSTERED BY THE REAGAN AND BUSH ADMINISTRATIONS WORKERS REALIZE THAT WALKING OFF THE JOB OFTEN MEANS GETTING FIRED AND IN A WEAK ECONOMY UNION WORKERS ARE IN NO MOOD TO LOSE THEIR JOBS TO REPLACEMENT WORKERS UNIONS HAVE BEEN FLOCKING TO A VARIETY OFCREATIVE TACTICS THE INTERNATIONAL UNION OF ELECTRONIC WORKERS HAS LAUNCHED A SPIRITED GRASSROOTS CAMPAIGN OPPOSING THE NORTH AMERICAN FREE TRADE AGREEMENT THE GROUP HAS BEEN LOBBYING LEGISLATORS AND HOLDING MARCHES AND RALLIES ONE IN FRONT OF A SHUTTERED PLANT AT AMERICAN TELEPHONE & TELEGRAPH CO LAST YEAR THE COMMUNICATIONS WORKERS SET UP AN ELECTRONIC PICKET LINE IN WHICH 70000 PEOPLE PLEDGED TO BOYCOTT AT&T IF THE UNION DIDN'T GET ITS WAY THE CWA ESTIMATES THE THREATENED BOYCOTT WOULD HAVE COST AT&T 3 MILLION TO 5 MILLION A WEEK IN LOST REVENUE AN AT&T SPOKESMAN SAID THE THREAT SOUNDS LIKE A WEAPON BUT DENIES THAT IT HAD AN IMPACT IN AN ONGOING DISPUTE AT AE STALEY MANUFACTURING CO IN DECATUR ILL THE ALLIED INDUSTRIAL WORKERS HAVE PRESSURED STALEY REPRESENTATIVES TO RESIGN FROM TWO BANK BOARDS AND HAS LAUNCHED A BOYCOTT OF STATE FARM INSURANCE AN INDIRECT OWNER OF THE COMPANY A UNIT OF BRITAIN'S TATE & LYLE PLC THE UNION ALSO MARCHED ON STALEY AND STATE FARM OFFICES AND THE STATE CAPITOL INSTEAD OF A STRIKE THE UNION HAS BEEN ABLE TO SLOW DOWN WORK BY SCRUPULOUSLY FOLLOWING SAFETY RULES WORKERS HAD IGNORED BEFORE APPARENTLY FRUSTRATED BY THE UNION'S TACTICS THE COMPANY LOCKED OUT THE WORKERS THERE WAS AN ACCUMULATED FRUSTRATION BUILT UP IN THE '80S ONE DEFEAT AFTER ANOTHER SAYS PHILIP MATTERA RESEARCH DIRECTOR FOR CORPORATE CAMPAIGN INC A NEW YORK CONSULTING FIRM ADVISING THE UNION THEY'RE TIRED OF BEING PUSHED AROUND WHEN UNIONS DO STRIKE THEY'RE LOOKING FOR MORE EFFECTIVE TACTICS WHEN THE AMERICAN FEDERATION OF TEACHERS WENT ON STRIKE LAST FALL IN DETROIT THEY THREATENED NOT TO HONOR AN EARLIER EMPOWERMENT AGREEMENT THAT GAVE INDIVIDUAL SCHOOLS MORE FLEXIBILITY THE UNION SAYS THAT THREAT HELPED IT PREVAIL ON MOST ISSUES SETTLING THE ONEMONTH STRIKE WITH PAY INCREASES OF 4 AND 3 IN THE CONTRACT'S TWO YEARS IN NOVEMBER THE AFT CONTRIBUTED TO THE DEFEAT OF THREE ANTAGONISTIC MEMBERS OF THE SCHOOL BOARD BUT THERE ARE LIMITS TO THE EFFECTIVENESS OF THIS NEW SPIRIT WORKERS STRIKING THREE PLANTS OWNED BY PPG INDUSTRIES INC RECENTLY ORGANIZED A DISPLAY OF INTERUNION SOLIDARITY THE WORKERS REPRESENTED BY THE ALUMINUM BRICK AND GLASS WORKERS ORGANIZED A RALLY IN DOWNTOWN PITTSBURGH AT WHICH HUNDREDS OF UNION FAITHFUL FROM FIVE DIFFERENT UNIONS CIRCLED PPG'S GLASS HEADQUARTERS THE PROTESTERS SOME IN CAMOUFLAGE SUITS YELLED SLOGANS WAVED FLAGS AND BRANDISHED BANNERS THAT SAID THINGS LIKE I'D RATHER DIE ON MY FEET THAN LIVE ON MY KNEES I'M STARTING TO SEE A LOT OF PROGRESS IN THE MOVEMENT SAID MIKE DAVIN A TEAMSTER AT THE RALLY IT'S COMING BACK NOT SO FAST PPG HAS DECLARED THAT IT WILL CLOSE TWO OF THE THREE PLANTS ON STRIKECLAIMING THE CLOSURES ARE UNRELATED TO THE DISPUTE THE MINE WORKERS MEANWHILE ARE HOPING TO BOOST THEIR FORTUNES BY DISCARDING THEIR VIOLENT IMAGE IN THEIR SELECTIVE STRIKES AGAINST COAL COMPANIES WE'RE NO RADICALS HERE SAYS MIKE THOMAS A WORKER AT ASHLAND COAL INC'S HOBET NO 21 MINE PICKETING ALONG HIGHWAY 119 JUST UP FROM MADISON WVA WE KNOW THE COMPANIES WOULD LIKE NOTHING MORE THAN TO SEE US AGITATED BUT WE'LL SIT TIGHT VIOLENCE DURING THE STRIKES HAS BEEN LIMITED TO COMPANIES' CHARGES OF ROCKTHROWING SHOOTING AT POWER EQUIPMENT AND IGNITING FIRES OF SUSPICIOUS ORIGIN STRIKERS FROM MR THOMAS'S LOCAL 2286 TRAPPED COMPANY SUPERVISORS FOR THREE HOURS IN A SCHOOL PARKING LOT BUT DIDN'T HURT ANYONE THE MINE WORKERS' RELATIVELY PEACEFUL SOLIDARITY HAS HAD SOME IMPACT AS THE UNION'S SELECTIVE STRIKES ENTER A THIRD MONTH IDLING 14000 WORKERS FOUR COAL PRODUCERS HAVE ABANDONED THE 12MEMBER BITUMINOUS COAL OPERATORS' ASSOCIATION AND REACHED THEIR OWN DEALS WITH THE UNION BUT EVEN AN ALLOUT VICTORY FOR THE MINE WORKERS WOULD DO LITTLE MORE THAN KEEP THEM FROM SLIPPING FURTHER THEIR CORE DEMAND IS SECURITY IN THE FEW JOBS THEY STILL HAVE RATHER THAN IMPROVEMENTS IN PAY AND PERKS YOU'LL NEVER HEAR US MENTION WAGES SAYS JOHN GHIZ A 48YEAROLD MINER ON STRIKE WE HAVE TO BE CONCERNED THAT WE'LL EVEN HAVE A JOB SEE RELATED LETTER LETTERS TO THE EDITOR DOUBLESPEAK ON UNIONS LESS VIOLENT IS PEACEFUL WSJ AUG 17 1993 9307080012 YY93 MM08 9308170008 930719 POLITICS & POLICY LOBBYISTS THREATEN TO USE LEVERAGE TO PROTECT A VERY SPECIAL INTEREST THEIR PRIZED TAX BREAK BY JILL ABRAMSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN AN INSIDETHEBELTWAY IRONY LOBBYISTS ARE ABOUT TO BE CLOBBERED OVER THE MOST SPECIAL OF INTERESTS THEIR OWN AS PART OF THE NEGOTIATIONS OVER PRESIDENT CLINTON'S DEFICITREDUCTION PLAN SENATE AND HOUSE CONFEREES ARE LIKELY TO ELIMINATE THE BUSINESS TAX DEDUCTION FOR LOBBYING EXPENSES THE LIKELY END OF DEDUCTIONS FOR LOBBYING NOT ONLY HAS LOBBYISTS SEEING RED BUT HAS SOME OF THEM THREATENING TO WITHHOLD GREEN THEIR CAMPAIGN CONTRIBUTIONS SOME HAVE MADE THIS A LITMUS TEST FOR PAC POLITICAL ACTION COMMITTEE DONATIONS SAYS ROBERT BOEGE VICE PRESIDENT OF THE AMERICAN SOCIETY OF ASSOCIATION EXECUTIVES A LOBBY GROUP THAT REPRESENTS MORE THAN 9000 WASHINGTONBASED TRADE ASSOCIATIONS INCLUDING SUCH POLITICAL BEHEMOTHS AS THE REALTORS AND THE HOMEBUILDERS FOR THE DENIZENS OF GUCCI GULCH THIS LATEST BLOW COMES ON THE HEELS OF SUCH EARLIER INSULTS AS A PROPOSED CAMPAIGN FINANCE REFORM BILL THAT WOULD CUT DOWN LOBBYISTS' CLOUT AS PARTY FUNDRAISERS AND A SENATEPASSED BILL TO IMPOSE TOUGH NEW DISCLOSURE RULES REQUIRING THEM TO REVEAL IN EXCRUCIATING DETAIL ALL THE GOODIES THEY DISPENSE TO LAWMAKERS BUT NOTHING HITS CLOSER TO HOME THAN THE DEDUCTIBILITY ISSUE WHICH EXPLAINS WHY MR BOEGE'S GROUP WHOSE MEMBERS WILL BE HIT HARDEST BY THE MEASURE THE AMERICAN LEAGUE OF LOBBYISTS AND A COALITION OF COMPANIES LED BY O'CONNOR & HANNAN A DEMOCRATIC LAW FIRM ARE LEADING THE CHARGE AGAINST IT SO FAR THOUGH THAT CHARGE HAS BEEN LARGELY INEFFECTUAL RECENTLY IN TWO TENSE ENCOUNTERS WITH DEMOCRATIC PARTY OFFICIALS LOBBYISTS' ANGER EXPLODED INTO THE OPEN THE FIRST WAS A LUNCHEON FOR TOP DEMOCRATIC MONEY MEN HOSTED BY WASHINGTON LAWYERLOBBYIST THOMAS BOGGS AT THE SESSION A NUMBER OF LOBBYISTS LED BY REAL ESTATE SPECIALIST R DUFFY WALL COMPLAINED LOUDLY TO DEMOCRATIC NATIONAL COMMITTEE CHAIRMAN DAVID WILHELM THAT THE PARTY SHOULDN'T BE ASKING LOBBYISTS FOR POLITICAL CONTRIBUTIONS WHILE BASHING THEM WITH RHETORIC AND LEGISLATION ACCORDING TO ONE PARTICIPANT MR WALL EXCHANGED HEATED WORDS WITH BOTH MR WILHELM AND SCOTT PASTRICK A PROMINENT LOBBYIST AND DNC FUNDRAISER HELPING TO MOBILIZE THE LOBBYING COMMUNITY TO CONTRIBUTE TO TWO MAJOR DNC FUNDRAISING EVENTS IN NEW YORK AND WASHINGTON MR WALL AND MR PASTRICK DECLINE TO DISCUSS THE EPISODE MR WILHELM ACCORDING TO HIS SPOKESWOMAN CATHERINE MOORE URGED THE LOBBYISTS NOT TO MAKE A LITMUS TEST OF THE DEDUCTIBILITY ISSUE AND TO PUT THEIR PARTY LOYALTY ABOVE THEIR OWN SELFINTEREST HE TOLD THEM I WANT YOU WITH US' MS MOORE REPORTS THEN LATE LAST MONTH LOBBYISTS VENTED THEIR ANGER AGAIN THIS TIME AT MANDY GRUNWALD ONE OF PRESIDENT CLINTON'S TOP POLITICAL ADVISERS MS GRUNWALD WAS THE FEATURED SPEAKER AT A MEETING OF SEVERAL DOZEN WASHINGTON LAWYERS AND LOBBYISTS WHO WERE SUPPOSED TO SELL TICKETS TO THE PRESIDENT'S DINNER THE FUNDRAISING DINNER THAT PUMPED MORE 4 MILLION INTO THE DNC'S COFFERS IN LATE JUNE MANY PEOPLE SAID THEY OBJECTED TO THE PRESIDENT ATTACKING LOBBYISTS AND SPECIAL INTERESTS SAYS MS GRUNWALD I TOLD THEM THAT HE HAD BEEN CLEAR THROUGHOUT THE CAMPAIGN THAT HE WANTED TO LIMIT THE ROLE OF LOBBYISTS AND INCREASE THE PARTICIPATION OF PEOPLE IT SHOULDN'T COME AS A SURPRISE TO THEM SHE ADDS I EMPHASIZED THAT ALTHOUGH THE PARTY APPRECIATED THEIR SUPPORT I HAD TO BE CANDID THAT HE'D CONTINUE TO SPEAK THAT WAY ACCORDING TO ONE LOBBYIST WHO ATTENDED THE MEETING SEVERAL MONEY MEN LEFT THE ENCOUNTER VOWING TO END THEIR FUNDRAISING ACTIVITIES FOR THE PARTY CLOSING THE LOBBYINGEXPENSES DEDUCTION WOULD RAISE AS MUCH AS 12 BILLION OVER FIVE YEARS IF A BROADER SENATE VERSION OF THE MEASURE IS ADOPTED THE NARROWER HOUSE VERSION WOULD RAISE 800 MILLION THE SOCIETY OF ASSOCIATION EXECUTIVES HAS SENT A LETTER TO ALL SENATORS ARGUING THAT LOBBYING IS IMPORTANT TO THE FLOW OF INFORMATION SHOULD BE CONSIDERED AN ORDINARY BUSINESS EXPENSE AKIN TO LEGAL MARKETING OR COMMUNICATIONS COSTS WHICH ARE DEDUCTIBLE AND IS PART OF THE CONSTITUTIONALLY PROTECTED RIGHT TO PETITION THE GOVERNMENT WE ARE DEMONIZING A VERY ESSENTIAL FUNCTION IN THE REPRESENTATIVE PROCESS ASSERTS MR BOEGE NOT ALL LOBBYISTS WOULD BE AFFECTED EVENLY BY THE PROPOSED CHANGE THOSE WHO PRACTICE AT BIG LAW FIRMS FOR EXAMPLE PROBABLY WOULDN'T SUFFER MUCH THAT'S BECAUSE LEGAL EXPENSES WOULD STILL BE DEDUCTIBLE AND ONLY CERTAIN ACTIVITIES BY LAWYERS WOULD BE DISALLOWED AS LOBBYING BUT THE PROVISION WOULD FALL MUCH HARDER ON THE MORE THAN 9000 TRADE ASSOCIATIONS AND BUSINESSES THAT HAVE WASHINGTON OFFICES THAT MAINLY LOBBY ADDITIONALLY TRADE GROUPS PROBABLY WON'T BE ABLE TO CLAIM A TAX DEDUCTION FOR ANY PORTION OF THEIR DUES DEVOTED TO LOBBYING ACTIVITIES EVEN THOSE AIMED AT LOBBYING ON THE STATE AND LOCAL LEVELS IN MANY CASES TAXEXEMPT ORGANIZATIONS WILL ALSO BE REQUIRED TO FURNISH THE INTERNAL REVENUE SERVICE WITH MEMBERSHIP LISTS AND TO SPECIFY THE AMOUNT OF DUES DIRECTED TO NONDEDUCTIBLE LOBBYING ACTIVITIES THE PAPERWORK WILL BE TERRIBLY ONEROUS SAYS TIMOTHY JENKINS OF O'CONNOR & HANNAN WADE WILLIAMS PAST PRESIDENT OF THE AMERICAN LEAGUE OF LOBBYISTS AND DIRECTOR OF DELOITTE & TOUCHE'S WASHINGTON OFFICE ESTIMATES THAT NEW RECORDKEEPING REQUIREMENTS COULD COST BUSINESSES AS MUCH AS 300000 ANNUALLY YOU COULD END UP WHERE THE COST OF COMPLIANCE OUTWEIGHS THE REVENUE GAIN HE ARGUES YET LOBBYISTS LOBBYING TO PRESERVE THE TAX BREAKS ARE RESIGNED THAT THE AX IS GOING TO FALL AS A RESULT MOST ARE CURRENTLY FOCUSING THEIR EFFORTS ON NARROWING THE REACH OF THE LEGISLATION TRYING TO LIFT SOME OF THE PAPERWORK REQUIREMENTS AND TO EXEMPT CERTAIN ACTIVITES SUCH AS FURNISHING MEMBERS OF CONGRESS AND STAFF WITH TECHNICAL INFORMATION MANY ALSO EXPECT THAT THE LEGISLATION WILL FACE A COURT CHALLENGE ON THE GROUNDS THAT IT INFRINGES ON THE CONSTITUTIONAL RIGHT TO PETITION THE GOVERNMENT THE PRESIDENT PROMISED HE WAS GOING AFTER GUCCI GULCH SAYS MR JENKINS THIS IS VIEWED AS A SPECIALINTEREST DEDUCTION THAT'S THE PHRASE THAT HAS CAUGHT ON WE'RE AN EASY TARGET SIGHS MR WILLIAMS IF CONGRESS AS EXPECTED CLOSES THE TAX DEDUCTION FOR LOBBYING EXPENSES IT WILL BE JABBING A FINGER IN THE EYE OF SOME BIG CONTRIBUTORS SEE RELATED LETTER LETTERS TO THE EDITOR WE'RE NOT LOBBYISTS WSJ AUG 17 1993 9307190142 YY93 MM08 9308160157 930816 INTERNATIONAL FRANCE EYES CURRENCY CONTROLS TO BOOST FRANC WITHOUT RAISING INTEREST RATES BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON FOR FRENCH AUTHORITIES IT SEEMS THAT TOUGH TIMES DEMAND DESPERATE MEASURES WITH THE FRANC FINISHING LAST WEEK NEAR ITS HISTORIC LOWS IN THE EUROPEAN MONETARY SYSTEM AT ABOUT 354 TO THE GERMAN MARK THE COUNTRY'S TOP OFFICIALS ARE THREATENING TO TAKE ACTION AGAINST CURRENCY SPECULATION THOUGH CAPITAL CONTROLS MIGHT PREVENT THE FRANC FROM DECLINING FURTHER WHILE ALLOWING THE AUTHORITIES TO CUT INTEREST RATES TO BOOST THE ECONOMY THEY COULD PROVE COUNTERPRODUCTIVE IN THE LONG RUN THE FRENCH HAVE A PROBLEM SAID DAVID COCKER AN ECONOMIST AT CHEMICAL BANK LTD IN LONDON THEY NEED TO GET RATES DOWN BUT THEY HAVE TO PREVENT THE FRANC FROM COLLAPSING FOR NOW THOUGH THEY SEEM TO BE MOURNING THE DEATH OF THE EMS LIKE THE LOSS OF A CLOSE RELATIVE NATIONS WHOSE CURRENCIES ARE IN THE EMS ARE OBLIGATED TO SUPPORT THEIR CURRENCIES WITHIN A FIXED RANGE OF EXCHANGE RATES LOWERING FRENCH INTEREST RATES COULD PROMPT A FLOOD OF SPECULATION AGAINST THE FRANC THAT THE FRENCH GOVERNMENT COULD COMBAT ONLY AT GREAT COST PRIME MINISTER EDOUARD BALLADUR IN A TELEVISION INTERVIEW LATE LAST WEEK DEPLORED THE EXCESSES OF LIBERTY AMONG CURRENCY DEALERS WE MUST REFORM THE WORLD'S FINANCIAL AND MONETARY SYSTEM TO PROTECT THE PROSPERITY OF COUNTRIES FROM THESE SPECULATIVE MOVES HE SAID THIS IS A MORAL AND ECONOMIC DUTY OF GREAT CIVILIZED NATIONS WHILE THE PREMIER DIDN'T GIVE ANY SPECIFICS HE NOW HAS MANY IN THE FOREIGNEXCHANGE MARKET CONTEMPLATING SOME KIND OF CAPITAL CONTROLS BEING IMPOSED IN FRANCE OR EVEN ACROSS THE EC BELGIAN FINANCE MINISTER PHILIPPE MAYSTADT ADDED FUEL TO THE FIRE BY BEMOANING THE FACT THAT THE FOREIGN EXCHANGE MARKET IS ONE THAT DOESN'T KNOW ANY RULES COSTS OR TAXES IN AN INTERVIEW WITH A LOCAL NEWSPAPER MR MAYSTADT RULED OUT CREATING CAPITAL CONTROLS BUT SAID HE HOPED EC FINANCE MINISTERS MEETING NEXT MONTH WOULD DISCUSS PERFECTING WEAPONS OF DEFENSE TO COUNTER SPECULATION WITHIN THE EMS MR BALLADUR'S TOUGH TALK DID LITTLE TO HELP THE MOOD ON THE NATION'S FINANCIAL MARKETS WHILE MOST OTHER MAJOR EUROPEAN EXCHANGES WERE FIRMER EQUITY PRICES IN PARIS FINISHED FRIDAY ABOUT 05 LOWER FRENCH GOVERNMENT BONDS SLIPPED 025 POINT AMID A GENERAL UPWARD TREND IN EUROPE'S BOND MARKETS STEPHEN LEWIS DIRECTOR OF RESEARCH OF THE LONDON BOND BROKING CO SAID THE CHANCE OF CAPITAL CONTROLS AND THE WORSENING BUDGET DEFICIT MAKES HIM BEARISH ON THE FRENCH BOND MARKET THERE COULD BE COSTLY PENALTIES ON MOVING FUNDS OUT OF THE FRENCH MARKET HE SAID DAVID CLARK TREASURER OF HSBC HOLDING THE UMBRELLA OF THE HONGKONG & SHANGHAI BANK GROUP SAID MR BALLADUR'S ANTISPECULATION ZEAL REVEALS A FUNDAMENTAL MISUNDERSTANDING OF INTERNATIONAL FINANCE IT IS IMPOSSIBLE TO KNOW WHEN A BANK OR A CORPORATION IS SPECULATING OR WHEN IT IS ACTING IN THE LEGITIMATE INTEREST OF PROTECTING THE VALUE OF ITS PORTFOLIO MR CLARK SAID HE SAID CAPITAL CONTROLS WOULD LIKELY REDUCE THE LIQUIDITY OF FRANCE'S MONEY MARKET WHICH IN TURN WOULD CAUSE BANKS TO CHARGE MORE FOR LENDING AND THEREBY RAISE BORROWING COSTS FOR DOMESTIC COMPANIES INTERNATIONAL INSTITUTIONAL INVESTORS WHO BUY LARGE AMOUNTS OF GOVERNMENT BONDS AND OF STOCK IN NEWLY PRIVATIZED COMPANIES ARE HABITUALLY NERVOUS ABOUT PUTTING MONEY IN COUNTRIES WHERE THEY MIGHT HAVE DIFFICULTY GETTING IT OUT LATER IT WOULD BE A BIG MISTAKE SAID CRAIG KNOX HEAD OF INVESTMENT STRATEGY AT LAZARD BROTHERS INVESTORS IN LONDON IT COULD MEAN A FLIGHT OF MONEY OUT OF FRANCE NO OTHER MAJOR COUNTRY HAS SUCH CONTROLS HOWEVER THE FRENCH MAY BE SO WORRIED ABOUT THE VALUE OF THEIR CURRENCY THAT THEY WILL PROCEED THEY HAVEN'T GOT MANY OPTIONS LEFT SAID AN ECONOMIST AT A MAJOR FRENCH BANK WHO REQUESTED ANONYMITY THEY'VE NO FOREIGN EXCHANGE RESERVES NOW AND THEY CAN'T PUT UP INTEREST RATES THE RESTRICTIONS COULD BE SIMILAR TO THOSE ENACTED BY SPAIN LAST YEAR IN A FUTILE ATTEMPT TO PREVENT THE PESETA FROM DEVALUING THOSE MOVES INCLUDED REQUIRING NET BUYERS OF FOREIGN CURRENCIES OPERATING THROUGH THE SPANISH BANKING SYSTEM TO LODGE A NONINTERESTBEARING DEPOSIT WITH THE BANK OF SPAIN EQUAL TO ALL CAPITAL GAINS EARNED ON THESE CURRENCIES FINANCIAL INSTITUTIONS ALSO WERE COMPELLED TO LODGE A NONREMUNERABLE DEPOSIT WITH THE CENTRAL BANK EQUIVALENT TO THE VOLUME OF ALL NEW PESETADENOMINATED CREDITS GRANTED TO NONRESIDENTS ENTITIES BASED IN SPAIN WERE REQUIRED TO DEPOSIT WITH THE CENTRAL BANK AN AMOUNT EQUIVALENT TO ALL CONVERTIBLE PESETA TRANSFERS RECEIVED FROM FOREIGN SUBSIDIARIES ROBIN HUBBARD CHIEF ECONOMIST AT PARIBAS CAPITAL MARKETS IN LONDON THINKS IT IS WELL WITHIN THE FRENCH STYLE OF GOVERNMENT TO ENACT CONTROLS THEY HAVE A LONGESTABLISHED DIRIGISTE TRADITION OF FIXING PRICES AND CONTROLLING MARKET HE SAID THIS IS VERY MUCH IN LINE WITH FRENCH PHILOSOPHY AND THEY ARE UNDERSTANDABLY UPSET ABOUT ALL THE SPECULATION MORE IMPORTANT FOR THE LONGTERM MR HUBBARD THINKS THE FRENCH GOVERNMENT WOULD SACRIFICE A BIT OF ITS REPUTATION FOR THE BENEFIT OF GREATER EC UNITY IF YOU TAKE YOUR OBJECTIVE TO BE MONETARY UNION THEN YOU HAVE TO DETERMINE HOW TO ACHIEVE THAT AND IT IS EXTREMELY DIFFICULT WITH FREE CAPITAL MOBILITY HE SAID MR HUBBARD SAID ANY SUCH CONTROLS WOULD LIKELY BE USED AS A TEMPORARY EMERGENCY DEVICE TO COMBAT BRIEF PERIODS OF ANTIFRANC SENTIMENT WHATEVER THE MEASURES THE FRENCH GOVERNMENT IS LIKELY TO PUSH FOR THEM TO BE ENACTED ACROSS THE EC BUT BRITISH GERMAN AND DUTCH AUTHORITIES HAVE OFTEN EXPRESSED OPPOSITION TO ANY CAPITAL CONTROLS FINANCIALMARKET RESTRICTIONS VIOLATE THE SPIRIT OF THE EC'S SINGLE MARKET THAT SEEKS TO REMOVE ALL IMPEDIMENTS TO THE FREE FLOW OF GOODS PEOPLE AND CAPITAL 9308160156 930816 MARKETING & MEDIA NEW YORK TIMES CO SETTLES BIAS LAWSUIT OVER REAL ESTATE ADS NEW YORK THE NEW YORK TIMES CO SETTLED A LAWSUIT THAT ALLEGED RACIAL BIAS IN ITS REALESTATE ADVERTISEMENTS BY VOWING TO REQUIRE THAT FUTURE ADS CONVEY A MESSAGE OF INCLUSIVENESS FEDERAL JUDGE CHARLES S HAIGHT JR APPROVED THE NEWSPAPER'S AGREEMENT WITH THE OPEN HOUSING CENTER A FAIRHOUSING ADVOCACY GROUP AND FOUR BLACK PLAINTIFFS WHO SUED THE PAPER IN 1989 THE PLAINTIFFS ALLEGED THAT PICTORIAL REALESTATE ADVERTISEMENTS DEPICTED MOSTLY WHITES AS POTENTIAL RESIDENTS AND BLACKS AS BUILDING MAINTENANCE EMPLOYEES MAIDS AND DOORMEN A FEDERAL APPEALS COURT SOME TIME AGO REFUSED TO DISMISS THE CASE DESPITE ARGUMENTS BY THE TIMES THAT IT WAS PROTECTED FROM SUCH SUITS BY THE CONSTITUTION THE APPEALS COURT DIDN'T ADDRESS THE ISSUE OF WHETHER THE ADS WERE BIASED ALTHOUGH OTHER NEWSPAPERS HAVE MADE SIMILAR AGREEMENTS WITH FAIRHOUSING ADVOCATES FEW OF THOSE PACTS RESULTED FROM LITIGATION THE TIMES CASE WAS LEGALLY SIGNIFICANT BECAUSE IT WAS THE FIRST IN WHICH A FEDERAL APPEALS COURT SAID NEWSPAPERS WERE LIABLE FOR BIASED ADS AS IT HAS THROUGHOUT THE CASE THE TIMES DENIED ANY FAULT OR LIABILITY FOR THE ADVERTISEMENTS THE PACT GIVES DETAILED GUIDANCE ABOUT THE SORTS OF ADS THE TIMES WILL ALLOW OVER THE AGREEMENT'S FOURYEAR PERIOD FOR INSTANCE AN ADVERTISEMENT SHOWING A SINGLE FAMILY OF ONE RACE WOULD BE FINE BUT A SERIES OF SUCH ADS MUST FEATURE FAMILIES OF OTHER RACES IN A WAY THAT REASONABLY REPRESENTS THE ETHNIC BREAKDOWN OF THE NEW YORK METROPOLITAN AREA THE TIMES ALSO AGREED TO GIVE THE OPEN HOUSING CENTER A SERIES OF FREE ADVERTISEMENTS VALUED AT 300000 THE PAPER WILL SEND FELLOW NEW YORK PUBLISHERS A LETTER URGING THEM TO REQUIRE RACEINCLUSIVE ADVERTISING AND WILL COSPONSOR A MEETING FOR THE REALESTATE ADVERTISING INDUSTRY TO DISCUSS FAIR HOUSING 9308160155 930816 INTERNATIONAL RUBLE REMAINS STEADY MOSCOW THE RUBLE REMAINED STEADY AGAINST THE DOLLAR FRIDAY CLOSING AT 9845 ON THE MOSCOW INTERBANK CURRENCY EXCHANGE FOR THE FOURTH CONSECUTIVE TRADING SESSION VOLUME TRADED WAS 41680000 WITH INITIAL SUPPLY AT 41680000 AND INITIAL DEMAND AT 41060000 9308160154 930816 ONTARIO IS SET BACK ON POLICY TO STEM PENNYSTOCK FRAUD BY MARK HEINZL STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO AN ONTARIO COURT DEALT THE PROVINCE'S SECURITIES COMMISSION A MAJOR SETBACK IN ITS CRUSADE AGAINST PENNYSTOCK FRAUD BY DECLARING THE REGULATOR'S PENNYSTOCK POLICY INVALID THE COURT DETERMINED FRIDAY THAT THE ONTARIO SECURITIES COMMISSION HAD OVERSTEPPED ITS MANDATE WHEN IT UNVEILED IN MARCH A SET OF TOUGH RULES WITH WHICH ONTARIO'S PENNYSTOCK DEALERS WOULD HAVE HAD TO COMPLY THE RULES WERE AIMED AT CURBING HIGHPRESSURE TACTICS USED BY PENNYSTOCK DEALERS MANY OF WHOM FAIL TO ADVISE CLIENTS OF FINANCIAL RISKS THE COMMISSION SAID UNDER THE PROPOSED RULES WHICH NEVER WENT INTO EFFECT PENNYSTOCK BROKERS WOULDN'T HAVE BEEN ALLOWED TO TAKE ORDERS OVER THE TELEPHONE AND WOULD HAVE BEEN REQUIRED TO PRESENT CLIENTS WITH A FORM HIGHLIGHTING THE RISKS OF INVESTING IN PENNY STOCKS BUT JUSTICE ROBERT BLAIR OF THE ONTARIO COURT OF JUSTICE GENERAL DIVISION SAID IN A STATEMENT THAT THE COMMISSION SIMPLY DOES NOT HAVE THE STATUTORY MANDATE TO REGULATE IN SUCH A FASHION UNDER THE PROVINCE'S SECURITIES LAWS CALLED THE ONTARIO SECURITIES ACT THE SECURITIES COMMISSION HAS NO STATUTORY JURISDICTION OF A GENERAL DISCRETIONARY NATURE HE SAID THE PROVINCE'S PENNYSTOCK DEALERS BANDED TOGETHER UNDER THE NAME SECURITIES DEALERS SOCIETY OF ONTARIO AND SUED THE SECURITIES COMMISSION LAST YEAR UPON LEARNING THAT THE COMMISSION WAS PLANNING THE PENNYSTOCK POLICY THE COMMISSION DEEMS PENNYSTOCK DEALERS THOSE FIRMS THAT AREN'T MEMBERS OF THE TORONTO STOCK EXCHANGE THE INVESTMENT DEALERS ASSOCIATION OF CANADA OR ANY SIMILAR RECOGNIZED SELFREGULATORY ORGANIZATION OBVIOUSLY WE'RE NOT HAPPY SAID MARK GORDON A LAWYER WITH THE ONTARIO SECURITIES COMMISSION'S ENFORCEMENT BRANCH MR GORDON SAID THE COMMISSION HASN'T DECIDED WHAT STEPS TO TAKE NEXT BUT ADDED THAT IT HAS 30 DAYS TO APPEAL THE JUDGE'S DECISION HE DECLINED TO SAY IF THE COMMISSION WILL ADOPT A NEW POLICY REGARDING PENNYSTOCK DEALERS BUT SAID ANYTHING'S POSSIBLE MR GORDON POINTED OUT THAT JUSTICE BLAIR DID SAY IN HIS STATEMENT THAT THERE MAY INDEED BY A NEED FOR INVESTOR PROTECTION FROM SOME PENNYSTOCK DEALERS JAMES BAILLIE A SECURITIES LAWYER WITH TORY TORY DESLAURIERS & BINNINGTON IN TORONTO AND FORMER ONTARIO SECURITIES COMMISSION CHAIRMAN SAID THE COURT'S DECISION IS A SETBACK FOR THE COMMISSION'S REGULATORY POWER BUT THAT THERE'S OTHER WAYS TO SKIN THE CAT THE COMMISSION MIGHT FOR EXAMPLE DRAFT A NEW POLICY AND MAKE IT MORE CLEAR THAT IT IS JUST A GUIDELINE A GUIDELINE WOULD BE USED FOR REFERENCE DURING SPECIFIC CASES OF SECURITIES FRAUD RATHER THAN ACT AS A BROAD DECREE HE SAID 9308160153 930816 MANAGER'S JOURNAL THE TOUGH INTERFACE BETWEEN EXECS AND TECHS BY JAMES F MOORE DURING THE NEXT FEW WEEKS MICROSOFT WILL LAUNCH ITS LANDMARK NEW COMPUTER OPERATING SYSTEM WINDOWS NT FOR NEW TECHNOLOGY THE NT PRODUCT DEVELOPMENT TEAM WAS LED BY DAVID CUTLER WHAT MOST PEOPLE DON'T KNOW IS THAT MR CUTLER AND HIS COLLEAGUES ORIGINATED MANY OF THE SEMINAL IDEAS IN NT WHILE WORKING FOR A PREVIOUS EMPLOYER DIGITAL EQUIPMENT CORP THE STORY OF WHY MICROSOFT HAS THE PRODUCT NOW RATHER THAN DEC PROVIDES A TIMELY PARABLE OF THE COSTS OF MISCOMMUNICATION AND MISUNDERSTANDING BETWEEN TECHNOLOGISTS AND EXECUTIVES THESE COSTS CAN INCLUDE MISSING MAJOR INDUSTRY SHIFTS AND LOSING MARKET POSITION THE POTENTIAL FOR SUCH DAMAGE IS NOT LIMITED TO THE COMPUTER INDUSTRY IT IS PRESENT IN MANY OTHER BUSINESSES AS THE INFLUENCE OF TECHNOLOGY CONTINUES TO EXPAND IN THE LATE 1980S DEC FOUNDER AND THEN CHIEF EXECUTIVE KEN OLSON STRUGGLED TO RESPOND TO THE COMING OF THE MICROPROCESSOR AND THE GROWING TENDENCY OF CUSTOMERS TO BUILD BUSINESS APPLICATIONS ON OPEN SOFTWARE OPERATING SYSTEMS THAT IS LAYERS OF SOFTWARE THAT ALLOWED THEIR PROGRAMS TO RUN ON HARDWARE FROM MANY DIFFERENT VENDORS ONE OPTION WAS FOR DEC TO BECOME AN OPEN SYSTEMS COMPANY OTHERS WERE TAKING THIS PATH THIS MEANT SELLING SOFTWARE AND HARDWARE THAT WOULD WORK INTERCHANGEABLY WITH PRODUCTS OF OTHER FIRMS WHILE CUSTOMERS MIGHT APPLAUD DEC PRODUCTS WOULD LOSE THEIR DIFFERENTIATION CUSTOMERS WOULD PLAY VENDORS AGAINST EACH OTHER BEATING PRICES DOWN THIS SEEMED AN UNATTRACTIVE CHOICE THE ANSWER TO THIS PROBLEM REQUIRED THE PERSPECTIVE OF A TECHNOLOGIST WHO UNDERSTOOD THE POTENTIAL OF BOTH OPERATING SYSTEMS SOFTWARE AND MICROPROCESSORS MR CUTLER BELIEVED HE COULD CREATE A SOFTWARE OPERATING SYSTEM LAYER THAT CUSTOMERS WOULD VALUE FOR ITS POWER AND THAT WOULD BE PROPRIETARY IN THE SENSE THAT DEC WOULD OWN IT AND SHAPE ITS FUTURE BUT IT WOULD ALSO BE OPEN IN THAT THE OPERATING SYSTEM WOULD ALLOW CUSTOMERS TO USE MICROPROCESSORS AND HARDWARE FROM OTHER VENDORS BESIDES DEC IN MR CUTLER'S VISION DEC WOULD EXERT INDUSTRY LEADERSHIP THROUGH CONTROLLING THE EVOLUTION OF THE OPERATING SYSTEM THIS LEADERSHIP WOULD MAKE DEC A PREFERRED VENDOR OF HARDWARE SOFTWARE AND SERVICES FOR CUSTOMERS DEC WOULD MAINTAIN HIGHER REVENUES AND MARGINS THAN PURELY OPEN SYSTEMS COMPANIES MR OLSON ULTIMATELY DECIDED THAT MR CUTLER'S TECHNOLOGICAL IDEAS AND THE BUSINESS STRATEGY IMPLICIT IN EMBRACING THEM WOULD NOT WORK FOR DEC MR CUTLER DEFECTED TO MICROSOFT WHERE CEO BILL GATES CONCLUDED THAT MR CUTLER'S JUDGMENT WAS WORTH BETTING ON AT LEAST IN PART MEANWHILE BACK AT DEC MR OLSON AND HIS EXECUTIVES WERE UNABLE TO COME UP WITH A VIABLE BUSINESS MODEL FOR THE 1990S DEC LOST BILLIONS OF DOLLARS AND MR OLSON WAS REMOVED BY THE DIRECTORS NOW IN 1993 WE HAVE MICROSOFT BRINGING THE NEXT GENERATION OF MR CUTLER'S IDEAS TO MARKET IN WINDOWS NT IN AN ULTIMATE IRONY DEC'S NEW LEADERSHIP IS LICENSING NT FROM MICROSOFT AND STATES THAT NT IS VITAL TO DEC'S FUTURE THERE IS NO REAL VILLAIN IN THIS STORY NOT DAVID CUTLER OR KEN OLSON OR BILL GATES AND THE JURY IS STILL OUT ON WHETHER NT WILL BRING SUCCESS TO MICROSOFT NEVERTHELESS IT'S CLEAR THAT DEC LACKED AN ORGANIZATIONAL MECHANISM TO INTEGRATE TECHNOLOGICAL AND STRATEGIC THINKING AT A TIME OF INDUSTRY UPHEAVAL MR CUTLER LACKED THE CREDIBILITY AND SKILLS TO INFLUENCE CORPORATE STRATEGY AT DEC BUT HE SHARES THIS PROBLEM WITH MANY TECHNOLOGISTS IN MAJOR COMPANIES MR OLSON CHOSE NOT TO FOLLOW THE STRATEGY THAT MICROSOFT EMBRACED BUT WHAT SENIOR EXECUTIVE HAS NOT AT SOME TIME OR ANOTHER MISSED A PLAY THAT SEEMS OBVIOUS IN HINDSIGHT THE CHALLENGE IS NOT HOW TO BE RIGHT ALL THE TIME BUT HOW TO SYSTEMATICALLY IMPROVE THE ODDS OF SUCCESS BY BRINGING TOGETHER BUSINESS AND TECHNOLOGICAL INSIGHT AND CREATIVITY IN MY EXPERIENCE SUCH EFFORTS ARE BEST LED BY BRIDGING PEOPLE WHO GRASP THE CONNECTIONS BETWEEN TECHNOLOGY AND BUSINESS CHANGE CEO ROY VAGELOS OF PHARMACEUTICAL GIANT MERCK BEGAN HIS CAREER AS A TALENTED TECHNOLOGIST AS HE CROSSED OVER INTO GENERAL MANAGEMENT HE CREATED AN INTEGRATIVE POINT OF VIEW THAT HAS SERVED HIM WELL IN CRAFTING NEW BUSINESS MODELS FOR MERCK FOR EXAMPLE DURING THE 1980S HE WAS AN INDUSTRY LEADER IN APPLYING RETURNONINVESTMENT AND PRODUCTLIFECYCLE MODELS TO THE MANAGEMENT OF RESEARCH INVESTMENTS IN THE 1990S HE MUST FIND WAYS TO CONTINUE PRODUCT INNOVATION WHILE DEALING WITH A FEDERAL GOVERNMENT INTENT ON REDUCING HIS MARGINS EVEN AT THE EXPENSE OF SOME TECHNOLOGICAL PROGRESS BRIDGING DOESN'T NECESSARILY REQUIRE A CAREER ON BOTH SIDES OF THE DIVIDE WHEN WILLIAM WARWICK TOOK OVER AT&T MICROELECTRONICS HE ENGAGED A PRIVATE TECHNOLOGY COACH WHO WORKED CLOSELY WITH HIM SAM WALTON BUILT THE LOGISTICAL STRENGTH OF WALMART THROUGH A LONGTERM STRATEGIC RELATIONSHIP WITH IBM DEMONSTRATING THAT A ROBUST BUSINESS AND TECHNOLOGY VISION CAN BE ACHIEVED THROUGH CORPORATE PARTNERSHIPS EFFECTIVE BUSINESS AND TECHNOLOGY DECISIONS ARE NOT MADE OVERNIGHT NOR ARE THEY THE WORK OF ONE PERSON THEY REQUIRE A SUSTAINED COMMITMENT TO ORGANIZATIONAL LEARNING AT THE HIGHEST LEVELS FOR EXAMPLE AT&T HAS HIGHLEVEL TEAMS OF TECHNOLOGISTS AND BUSINESS EXECUTIVES DEVOTED TO MASTERING BUSINESS EVOLUTION SOME OF THESE TEAMS FUNCTION WITHIN EXISTING BUSINESS UNITS AND OTHERS FOCUS ON THE WHITE SPACE BETWEEN BUT THE PRIMARY LONGTERM BENEFIT OF THESE APPROACHES IS THAT SOME OF THE BEST TECHNICAL MINDS IN PLACES LIKE BELL LABS AND ACROSS THE AT&T BUSINESSES ARE CREATING NEW APPROACHES FOR BUSINESS STRATEGY IN THE ALLIANCEDRIVEN WORLD OF COMPUTERS COMMUNICATIONS AND CONSUMER ELECTRONICS TECHNOLOGY WILL CONTINUE ITS RELENTLESS PENETRATION OF BUSINESSES AND INDUSTRIES WHAT IS CLEAR FROM THE EXAMPLES ABOVE IS THAT TECHNOLOGY STRATEGY IS BECOMING A CENTRAL ART OF BUSINESS LEADERSHIP EXECUTIVES NEED TO INVEST IN MASTERING THIS ART MR MOORE IS PRESIDENT OF A MANAGEMENT CONSULTING FIRM BASED IN CAMBRIDGE MASS 9308160152 930816 BUSINESS BRIEF VOIT CORP VOIT ACQUISITIONS CORP BUYS 95 OF STOCK OUTSTANDING VOIT ACQUISITIONS CORP SAID IT BOUGHT ABOUT 95 OF VOIT CORP'S SHARES OUTSTANDING UNDER ITS 450 A SHARE TENDER OFFER THE TENDER OFFER EXPIRED LAST WEEK VOIT ACQUISITION SAID IT PURCHASED 2929147 SHARES OF THE FAIRPORT NY SPORTING EQUIPMENT COMPANY'S COMMON THE NUMBER OF SHARES ACCEPTED INCLUDES 1395571 SHARES TENDERED PURSUANT TO AN AGREEMENT WITH CERTAIN VOIT CORP SHAREHOLDERS AND 12887 SHARES TENDERED PURSUANT GUARANTEED DELIVERY PROCEDURES VOIT ACQUISITION IS A UNIT OF USAHA TEGAS A MALAYSIAN PRIVATE INVESTMENT FIRM AND AN AFFILIATE OF TULSA OKLABASED PEXCO HOLDINGS INC 9308160151 930816 FOREIGN EXCHANGE PARITY OF 100 YEN TO DOLLAR IS SEEN SOON BY MICHAEL R SESIT AND QUENTIN HARDY STAFF REPORTERS OF THE WALL STREET JOURNAL LIKE A POWERFUL ROCKET THE JAPANESE YEN KEEPS CLIMBING SETTING NEW RECORDS ALMOST DAILY IN ITS SLIPSTREAM LIES THE PARADOX OF DETERIORATING JAPANESE CORPORATE PROFITS A SLOWING JAPANESE ECONOMY AND WEALTHIER FOREIGN INVESTORS WHOSE HOLDINGS OF JAPANESE STOCKS AND BONDS MEASURED IN THEIR LOCAL CURRENCIES RISE IN VALUE ALONG WITH THE YEN IN THE NEAR TERM TRADERS AND ECONOMISTS EXPECT THE YEN TO KEEP STRENGTHENING AGAINST THE DOLLAR AND MAJOR EUROPEAN CURRENCIES THE SOCALLED PARITY LEVEL OF 100 YEN TO ONE DOLLAR COULD WELL BE REACHED ON THE CURRENCY MARKET THIS WEEK BUT ANALYSTS ALSO WARN THAT THE YEN'S CLIMB ISN'T LIMITLESS IN A FEW MONTHS THEY PREDICT JAPAN'S CURRENCY WILL BE WEAKER THAN IT IS TODAY ALBEIT NOT MUCH YOU KEEP LOOKING FOR THE DIPS FOR CENTRAL BANK INTERVENTION TO HALT THE YEN'S RISE FOR A COLLECTIVE SIGN FROM INVESTORS THAT THE DOLLAR IS CHEAP ENOUGH SAID RICHARD WITTEN PARTNER IN CHARGE OF FOREIGNEXCHANGE SALES AT GOLDMAN SACHS & CO IN NEW YORK BUT SO FAR WE HAVEN'T SEEN IT WITH ANY KIND OF CONVICTION SO THE DOLLAR KEEPS SLIPPING HE ADDED THAT THERE IS NO REASON WHY THE JAPANESE CURRENCY SHOULDN'T KEEP RISING UNTIL IT TRADES IN THE HIGH 90 YENTODOLLAR RANGE THE DOLLAR FELL TO 10115 YEN MONDAY MORNING IN TOKYO ITS NINTH POSTWORLD WAR II LOW IN THE PAST 12 TRADING DAYS THAT WAS DOWN FROM ITS QUOTE LATE FRIDAY IN NEW YORK OF 10180 YEN ITSELF BELOW 10295 YEN LATE THURSDAY THE US CURRENCY ALSO TRADED AT 17115 MARKS LATE FRIDAY IN NEW YORK DOWN FROM 17159 MARKS THE PREVIOUS DAY THE BRITISH POUND FELL TO 14595 FRIDAY FROM 14663 THURSDAY SO FAR THIS YEAR THE YEN HAS RISEN 23 AGAINST THE DOLLAR THAT CURRENCY GAIN PLUS A STRONG STOCK MARKET HAS MEANT THAT IN DOLLAR TERMS JAPANESE STOCKS ARE UP ALMOST 58 IN 1993 JAPAN'S CURRENCY ALSO HAS CLIMBED TO RECORD HIGHS AGAINST EUROPEAN CURRENCIES REACHING A POSTWORLD WAR II PEAK OF 5935 YEN TO THE MARK FRIDAY MANY ECONOMISTS PREDICT THAT THE COMBINATION OF THE SKYHIGH YEN JAPAN'S LOW INFLATION AND ITS SLUGGISH ECONOMY WILL PROMPT THE BANK OF JAPAN TO CUT ITS DISCOUNT RATE THE RATE AT WHICH IT LENDS TO MAJOR FINANCIAL INSTITUTIONS HALF A PERCENTAGE POINT TO A RECORD LOW OF 2 DON KIMBALL AN ECONOMIST AT MITSUBISHI BANK LTD IN TOKYO THINKS THAT RATE REDUCTION COULD COME AS EARLY AS THIS WEEK UNTIL IT DOES THE YEN WILL GO UP SAID ROBERT FELDMAN AN ECONOMIST AT SALOMON BROTHERS ASIA LTD IN TOKYO BUT SOME TRADERS SAY THAT EXPECTATIONS OF LOWER JAPANESE INTEREST RATES ALREADY ARE LARGELY REFLECTED IN CURRENT EXCHANGE RATES AND THAT THE YEN PROBABLY WON'T WEAKEN MUCH OVER THE NEXT YEAR OR SO ECONOMISTS AT GOLDMAN SACHS EXPECT THE CURRENCY TO TRADE ROUGHLY BETWEEN 102 YEN AND 112 YEN TO THE DOLLAR LAWRENCE A VEIT AN INTERNATIONAL ECONOMIST AT BROWN BROTHERS HARRIMAN & CO IN NEW YORK SAID I DON'T THINK WE'LL SEE MUCH MORE THAN A 10 DEPRECIATION OF THE YEN FORECASTING THAT THE DOLLAR WILL TRADE AT 115 YEN IN DECEMBER ANALYSTS AT NATWEST MARKETS LTD IN LONDON FIGURE THE JAPANESE CURRENCY IS ALREADY ABOUT 60 OVERVALUED UNDERPINNING THE YEN AND UNDERMINING THE DOLLAR IS JAPAN'S HUGE CURRENTACCOUNT SURPLUS WHICH ANALYSTS SAY IS RUNNING AT AN ANNUAL RATE OF CLOSE TO 150 BILLION COMPARED WITH 1176 BILLION IN 1992 THE CURRENT ACCOUNT IS A WIDE MEASURE OF TRADE IN GOODS AND SERVICES PLUS CERTAIN FINANCIAL TRANSFERS IN THEORY THE STRONG YEN EVENTUALLY SHOULD REDUCE THAT SURPLUS BY MAKING JAPANESE GOODS MORE EXPENSIVE ON WORLD MARKETS WHILE LOWERING THE COSTS OF COMPETITIVE PRODUCTS MADE IN OTHER COUNTRIES IN FACT MANY ANALYSTS HAD BELIEVED THAT JAPAN'S BULGING TRADE SURPLUS WAS COMING DOWN BUT THEY WERE SHOCKED WEDNESDAY WHEN JAPAN REPORTED A JULY TRADE SURPLUS OF 1182 BILLION 28 HIGHER THAN A YEAR EARLIER AND 13 ABOVE THEIR CONSENSUS FORECAST WHAT'S MORE JAPANESE INVESTORS HAVE BEEN HESITANT TO RECYCLE THE LARGE SURPLUSES BY INVESTING ABROAD SOMETHING THAT WOULD HELP WEAKEN THE YEN SAID KERMIT L SCHOENHOLTZ CHIEF ECONOMIST AT SALOMON BROTHERS INTERNATIONAL IN LONDON THEY ARE AFRAID OF A STRONGER YEN ERODING THEIR RETURNS NOTING EUROPE'S CURRENCY CRISIS AND THE DECISION BY EUROPEAN CENTRAL BANKS TO GIVE IN TO SPECULATIVE ATTACKS ON THEIR CURRENCIES MR VEIT OF BROWN BROTHERS SAID THE ABDICATION OF EUROPEAN CENTRAL BANKS FROM RESPONSIBILITY FOR EXCHANGE RATES IS A FACTOR IN STRENGTHENING JAPAN'S CURRENCY IT HAS ENHANCED THE YEN'S STATUS AS A SAFEHAVEN INVESTMENT IT ALSO INCREASED SPECULATORS' CONFIDENCE THAT THEY COULD MOVE ANY CURRENCY TO THEIR BENEFIT SAID MR VEIT IN ADDITION NO OTHER COUNTRY IN THE WORLD IS CONCERNED OR UPSET THAT THEIR CURRENCIES ARE DEPRECIATING AGAINST THE YEN SAID MR WITTEN OF GOLDMAN SACHS EVERYBODY IN THE US WANTS IT TO HAPPEN THE AUTO INDUSTRY IS PRESUMABLY HAPPY THE TOOL AND MACHINERYPARTS INDUSTRIES SHOULD BE HAPPY THAT'S BECAUSE A HIGHER YEN INCREASES THE COST OF THEIR JAPANESE COMPETITORS THE CLINTON ADMINISTRATION HAS CONTINUALLY DENIED THAT IT IS PURSUING A WEAKDOLLAR POLICY TO FORCE JAPANESE MARKETS TO OPEN TO US GOODS NONETHELESS TRADERS INTERPRETED REMARKS ON FRIDAY BY WALTER MONDALE THE NEW US AMBASSADOR TO JAPAN AS TACITLY APPROVING OF SUCH A STRATEGY WHILE HE SAID A MAJOR PRIORITY WAS LOWERING THE US TRADE DEFICIT WITH JAPAN HE DECLINED TO COMMENT ON THE DOLLAR EVERYBODY KNOWS WHAT THE TRUE US INTENTIONS ARE A STRONGER YEN TO NARROW JAPAN'S TRADE SURPLUS SAID ROBERT A BRUSCA CHIEF ECONOMIST FOR NIKKO SECURITIES CO INTERNATIONAL IN NEW YORK HE AND OTHERS ARGUE THAT LETTING THE DOLLAR FALL IS A FUTILE EVEN WRONGHEADED STRATEGY WE'VE TAKEN THE YEN FROM 260 TO THE DOLLAR IN EARLY 1985 TO 102 TO THE DOLLAR AND THE TRADE AND CURRENTACCOUNT SURPLUSES OF JAPAN HAVE INCREASED OVER THE PERIOD BECAUSE OF SOCIETAL CONSTRAINTS ON IMPORTS AND A FAILURE TO GROW THE JAPANESE ECONOMY AS QUICKLY AS POTENTIALLY POSSIBLE SAID MR VEIT OF BROWN BROTHERS NOTING HOW THE STRONGDOLLAR POLICY OF THE EARLY REAGAN ADMINISTRATION PERSUADED US MANUFACTURERS TO SHUT DOWN PLANTS IN THE US AND SET UP OPERATIONS IN LOWCOST COUNTRIES SUCH AS TAIWAN AND THAILAND MR BRUSCA SAID THE STRONG YEN IS PROMPTING JAPANESE COMPANIES TO DO THE SAME THING BECAUSE MOST PACIFIC RIM COUNTRIES AND SEVERAL LATIN NATIONS PEG THEIR CURRENCIES TO THE DOLLAR PUSHING THE YEN UP AGAINST THE DOLLAR IS GIVING JAPANESE DIRECT INVESTMENT EXTRAORDINARY PURCHASING POWER IN THESE COUNTRIES SAID MR BRUSCA THAT KIND OF INVESTMENT CAN CREATE A TRULY LONGTERM CONUNDRUM FOR US COMPETITIVENESS OVER THE LONGER RUN IT IS GOING TO CREATE THIS INCREDIBLE PROBLEM BY COUPLING THE BEST CAPITAL WITH THE CHEAPEST LABOR IN OTHER PACIFIC RIM COUNTRIES R JEFFREY ELLIS A PROFESSOR AT THE INSTITUTE FOR STRATEGIC CHANGE AT BABSON COLLEGE IN BABSON PARK MAINE NOTED THAT SOME TIME AGO BIG JAPANESE CONSTRUCTION EQUIPMENT MAKER KOMATSU LTD BEGAN PREPARING FOR A YEN NEAR CURRENT LEVELS BY INCREASING ITS FOREIGN SOURCING OF EQUIPMENT PRODUCTS AND PARTS IN ADDITION MR BRUSCA AND OTHERS SAID THAT A STRONGER YEN PROLONGS JAPAN'S ECONOMIC SLUMP BY ERODING JAPANESE CONSUMER CONFIDENCE PROMPTING COMPANIES TO REDUCE INVESTMENT AND HURTING CORPORATE PROFITS IN SUCH AN ENVIRONMENT BROWN BROTHERS' MR VEIT WARNED JAPANESE STOCKS ARE A RISKY INVESTMENT SOMEDAY PEOPLE ARE GOING TO WAKE UP TO REALITIES AND REALIZE THEY MADE A BIG MISTAKE HE PREDICTED INTEREST RATES IN JAPAN ARE LOW AND THE PRICEEARNINGS RATIO OF THE JAPANESE STOCK MARKET IS ABOUT 71 ON A TRAILING BASIS WITH A CONSENSUS FORECAST OF A FURTHER 10 DECLINE IN CORPORATE PROFITS THAT MAKES EQUITY INVESTMENTS RATHER UNATTRACTIVE 9308160150 930816 WHO'S NEWS WORDSTAR INTERNATIONAL WORDSTAR INTERNATIONAL NOVATO CALIF STUART LEWIS RESIGNED AS A DIRECTOR OF THIS SOFTWARE MAKER REDUCING BOARD MEMBERSHIP TO THREE MR LEWIS 52 YEARS OLD IS AN EXECUTIVE WITH HOUSTONBASED PHYSICAL THERAPY INC 9308160149 930816 GE TO ESTABLISH A 7 MILLION FUND TO SETTLE PCB SUIT BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL GENERAL ELECTRIC CO AGREED TO ESTABLISH A 7 MILLION FUND TO COMPENSATE AS MANY AS 400 COMMERCIAL FISHERMEN WHO LOST INCOME BECAUSE OF PCBS THE COMPANY DISCHARGED INTO NEW YORK'S HUDSON RIVER THE FISHERMEN HAD SUED GE CHARGING THAT THEY WERE DEPRIVED OF THEIR CATCH BECAUSE THE CONTAMINATION PROMPTED THE STATE TO BAN STRIPEDBASS FISHING BETWEEN 1985 AND 1990 ON LONG ISLAND GE BASED IN FAIRFIELD CONN SAID IT SETTLED THE SUIT TO AVOID ENDLESS LITIGATION THE FISHERMEN'S CLAIMS WILL BE EVALUATED BY A COURTAPPOINTED REFEREE AND ONLY THOSE WHO CAN DEMONSTRATE REAL ECONOMIC LOSS WILL RECEIVE ANY MONEY FROM THE FUND GE SAID THE CLASSACTION SUIT WAS FILED IN A STATE COURT IN LONG ISLAND IN 1985 POLYCHLORINATED BIPHENYLS OR PCBS WERE USED WIDELY AS ELECTRICAL INSULATION BEFORE BEING BANNED IN 1977 THE CHEMICALS HAVE BEEN LINKED TO LIVER DAMAGE AND CANCER GE PLANTS ALONG THE HUDSON RIVER DISCHARGED PCB CONTAINING WASTES BETWEEN THE LATE 1940S AND 1977 UNDER WHAT THE COMPANY CALLS LEGAL PERMITS STRIPED BASS WAS SINGLED OUT FOR THE BAN BECAUSE THAT FISH MORE THAN ANY OTHER WAS FOUND TO CONTAIN PCBS IN PORTIONS POTENTIALLY HAZARDOUS TO HUMANS ALTHOUGH THE BAN HAS BEEN LIFTED ON LONG ISLAND IT CONTINUES ON FISHING IN THE HUDSON RIVER MEANWHILE THE FEDERAL ENVIRONMENTAL PROTECTION AGENCY IS EVALUATING VARIOUS REMEDIAL ACTIONS FOR THE 40MILE STRETCH OF THE RIVER BED THAT'S CONTAMINATED WITH THE HIGHLY STABLE CHEMICALS IN A PROTRACTED CONTROVERSY OVER HOW BEST TO CLEAN UP THE CONTAMINATION NEW YORK ENVIRONMENTAL OFFICIALS HAVE SAID THEY FAVOR DREDGING THE RIVER A PROCEDURE THEY SAY IS THE MOST EFFECTIVE REMEDY THEY ESTIMATE THAT GE PLANTS HAVE DUMPED 500000 POUNDS OF PCBS INTO THE HUDSON DREDGING WOULD COST GE MORE THAN 270 MILLION THE OFFICIALS ESTIMATE GE OPPOSES DREDGING CONTENDING THAT IT WOULD STIR UP THE PCBLACED SEDIMENTS AND DISPERSE THE CHEMICALS OVER NEW AREAS GE MAINTAINS THAT PCBS ARE BEING DEGRADED BY NATURALLY OCCURRING MICROBES IN THE RIVER BED THE RIVER IS GETTING BETTER ON ITS OWN SAID A GE SPOKESMAN 9308160148 930816 REVIEW & OUTLOOK EDITORIAL THE NEW CIVILITY THE EDITORS OF THE WASHINGTON POST PONDERING VINCENT FOSTER'S PRESUICIDE OBSERVATION ABOUT WASHINGTON RUINING PEOPLE FOR SPORT DESPAIRED THURSDAY OF THE COARSENING OF POLITICAL LIFE IT CITED THE CYCLE OF MISTRUST THAT HURTS NOT ONLY INDIVIDUALS BUT DEMOCRACY ITSELF THE FIRST IS THE CASE OF E BOB WALLACH HE WAS ONCE A 500000AYEAR LAWYER PRESIDENT OF THE SAN FRANCISCO BAR ASSOCIATION BUT HE GOT INVOLVED WITH WASHINGTON AND HAS SPENT THE LAST SIX AND A HALF YEARS TRAPPED IN A LEGAL NIGHTMARE TWO WEEKS AGO A FEDERAL JUDGE DISMISSED CHARGES IN HIS LATEST TRIAL WHEN A JURY DEADLOCKED THE US ATTORNEY'S OFFICE IN MANHATTAN SAID FRIDAY IT HASN'T YET DECIDED WHETHER IT WILL PROSECUTE MR WALLACH A THIRD TIME MR WALLACH HAD THE MISFORTUNE OF BEING A FRIEND OF ED MEESE AND ALSO OF GETTING INVOLVED WITH WEDTECH APPARENTLY A DEFENSE CONTRACTOR BUT IN FACT A MINORITYCONTRACTING SCAM IN 1987 THEN US ATTORNEY RUDOLPH GIULIANI INDICTED MR WALLACH FOR RACKETEERING WITH THE UNDERLYING CRIME AS MAIL FRAUD THAT IS HE BILLED WEDTECH FOR LEGAL WORK WHEN HE WAS ACTUALLY LOBBYING THOUGH HE IN FACT DID LEGAL WORK AND LOBBYING IS LEGAL MR GIULIANI OFFERED TO REDUCE THE CHARGES IF MR WALLACH WOULD IMPLICATE MR MEESE BUT HE REFUSED TO CONCOCT A STORY ON THE RICOMAIL FRAUD THEORY MR WALLACH WAS CONVICTED IN 1989 AND SENTENCED TO SIX YEARS IN PRISON THE MAIN WITNESS AGAINST HIM WAS GIVEN A PLEA BARGAIN FOR HIS COOPERATION AND IN THEIR EAGERNESS TO CONVICT THE PROSECUTORS IN THE APPELLATE COURT'S WORDS CONSCIOUSLY AVOIDED RECOGNIZING THAT THEIR WITNESS HAD COMMITTED OBVIOUS PERJURY THE APPELLATE COURT JUNKED THIS CONVICTION BUT THE PROSECUTORS' TERMINATOR TEAM CRAWLED FORWARD TO PROSECUTE HIM A SECOND TIME FOR THE SAME ACTS THIS TIME LABELING THEM FRAUD AND CONSPIRACY IN THE LATEST TRIAL MR WALLACH DEFENDED HIMSELF AND THE JURY REMAINED DEADLOCKED AFTER THREE DAYS CIVILITY BECKONS THE SECOND OPPORTUNITY CONCERNS THE CASE OF ELLIOTT ABRAMS MR ABRAMS WAS ONCE A WASHINGTON STAR THE YOUNG ASSISTANT SECRETARY OF STATE FOR INTERAMERICAN AFFAIRS BUT HE GOT INVOLVED WITH THE CONTRAS THE EFFORT TO OVERTHROW THE SANDINISTA REGIME IN NICARAGUA WE NOW KNOW TO HAVE BEEN A DEPOT FOR INTERNATIONAL TERRORISM IN ONE OF THE CONFRONTATIONAL CONGRESSIONAL HEARINGS ON THIS EFFORT MR ABRAMS WAS ASKED IF ANY FOREIGN GOVERNMENT WAS AIDING THE CONTRAS AND ANSWERED NO THIS WAS TRUE ONLY BECAUSE THE AID HE'D SOLICITED FROM THE SULTAN OF BRUNEI HAD NOT REACHED THE CONTRAS AND NEVER DID AFTER CONSULTING WITH THE SECRETARY OF STATE ABOUT BREAKING HIS PLEDGE OF CONFIDENTIALITY TO THE SULTAN HE WENT BACK TO COMMITTEE MEMBERS TO VOLUNTEER THE FULL ANSWER FOR THIS SIN SPECIAL PROSECUTOR LAWRENCE WALSH COERCED MR ABRAMS TO PLEAD GUILTY TO TWO MISDEMEANOR COUNTS OF LYING TO CONGRESS AS BECAME CLEAR IN SUBSEQUENT QUESTIONING WHAT MR WALSH REALLY WANTED WAS TESTIMONY IMPLICATING PRESIDENT BUSH IN ONE OF HIS LAST PRESIDENTIAL ACTS MR BUSH PARDONED MR ABRAMS AND SEVERAL OTHER IRANCONTRA DEFENDANTS BUT NOW THE DC BAR ASSOCIATION HAS TARGETED MR ABRAMS BEFORE THE PARDON THE BAR ASSOCIATION HAD DECIDED TO CENSURE MR ABRAMS THIS WOULD HAVE MEANT HE COULD HAVE KEPT HIS LAW LICENSE IN JANUARY HOWEVER THE BAR UPPED THE PUNISHMENT TO A 30DAY SUSPENSION A COUPLE OF WEEKS AGO IT STIFFENED THE SUSPENSION TO A YEAR ALL IN THE NAME OF CIVILITY WE SUPPOSE WE INVITE THE EDITORS OF THE WASHINGTON POST TO JOIN US IN URGING MORE CIVILITY TOWARD MR WALLACH AND MR ABRAMS PERHAPS THE CYCLE OF MISTRUST CAN INDEED TURN UPWARD IF OFFICIALS AND OPINION LEADERS GIVE SOLACE TO SOME OF THE PEOPLE WHO'VE BEEN DESTROYED FOR THE SPORT OF IT 9308160147 930816 INSIDE THE DISASTER AT IBM THE DAY BILL GATES OVERTHREW BIG BLUE YOU THINK YOU CAN SNEAK AROUND BEHIND MY BACK JIM CANNAVINO THE HEAD OF IBM'S PERSONALCOMPUTER BUSINESS TOLD BILL GATES THE CHAIRMAN OF MICROSOFT CORP BUT LET ME TELL YOU ANYTIME YOU TRY TO DO BUSINESS WITH ONE OF MY BIG CUSTOMERS EVEN BEFORE YOU'RE OUT THE DOOR THEY'RE CALLING ME TO TELL ME WHAT YOU'VE SAID THROUGH CLENCHED TEETH MR CANNAVINO MUTTERED A PHRASE THAT WOULD BECOME HIS REFRAIN I WOULDN'T WANT TO BE IN YOUR SHOES I WOULDN'T WANT TO HAVE TO COMPETE WITH THE IBM COMPANY IT WAS THE FALL OF 1989 AND MR CANNAVINO HAD BEEN ASSIGNED THE JOB OF SAVING IBM'S PERSONALCOMPUTER BUSINESS WHICH COMPANY OFFICIALS WERE BEGINNING TO REALIZE HAD COMPILED A NEARLY PERFECT RECORD OF STRATEGIC MISTAKES FOR THE PREVIOUS FIVE YEARS UNDER MR CANNAVINO'S PREDECESSORS IBM'S NEW LINE OF PCS WASN'T SELLING CRUCIAL NEW SOFTWARE WAS TURNING OUT TO BE CUMBERSOME AND SLOW STRATEGIES FOR SELLING SOFTWARE APPLICATIONS AND PERIPHERAL EQUIPMENT WERE NONEXISTENT BY THEN IBM AND MR GATES'S SOFTWARE COMPANY WERE IN THE NINTH YEAR OF AN INCREASINGLY STRANGE BUSINESS ALLIANCE IT HAD BEEN CONCEIVED IN MISUNDERSTANDING WHEN AN IBM EXECUTIVE ON MEETING THE 24YEAROLD MR GATES MISTOOK HIM FOR MICROSOFT'S OFFICE BOY MICROSOFT HAD PROVIDED IBM WITH ALLIMPORTANT SOFTWARE FOR ITS PCS BUT MR GATES HAD RETAINED OWNERSHIP OF THE SOFTWARE AND GROWN RICH COLLECTING ROYALTIES ON IT AND MR CANNAVINO WASN'T DOING ANY BETTER THAN HIS PREDECESSORS AT IBM HAD AT UNDERSTANDING BILL GATES THE RIVALRY BETWEEN THESE TWO MEN UNFOLDED IN AN INDUSTRIAL DRAMA THAT UPENDED THE ENTIRE COMPUTER BUSINESS IT LOOKED LIKE AN UNFAIR CONTEST A STREETSMART EXECUTIVE BACKED BY ONE OF HISTORY'S GREAT CORPORATIONS PITTED AGAINST A WAIFLIKE NERD WHEN IT WAS OVER THE NERD HAD BECOME THE RICHEST MAN IN AMERICA AND IBM WAS DAMAGED SO BADLY THAT IT HAD TO TAKE WRITEOFFS EQUIVALENT TO A THIRD OF THE PROFITS IT HAD MADE IN ITS ENTIRE 80YEAR HISTORY WHAT FOLLOWS IS AN INSIDE LOOK AT THE STRUGGLE BETWEEN MR GATES AND MR CANNAVINO AT A CRITICAL TIME IN THE SUDDEN SAD DECLINE OF INTERNATIONAL BUSINESS MACHINES CORP THE MOMENT WHEN THE BALANCE OF POWER IN THE COMPUTER INDUSTRY CHANGED IN AN EMBARRASSINGLY PUBLIC SHOWDOWN WHILE THE NATION'S TOP SOFTWARE EXECUTIVES LOOKED ON AGAPE BY 1989 THE PC EXPLOSION HAD FINALLY BEGUN TO UNDERCUT DEMAND FOR MAINFRAME COMPUTERS IBM'S BEDROCK BUSINESS WHICH USED TO PROVIDE 4 BILLION OR SO A YEAR IN PROFITS AND ROUTINELY MADE IBM THE MOST PROFITABLE COMPANY IN THE WORLD IBM HAD FUMBLED SO MANY OPPORTUNITIES IN THE PC BUSINESS THAT ITS PARTNERS AND COMPETITORS WERE MAKING ALL THE MONEY THOUGH ONLY A HANDFUL OF PEOPLE KNOW IT MR GATES HAD ACTUALLY OFFERED TO LET IBM BUY THE CRUCIAL PC SOFTWARE CALLED DOS FOR ABOUT 75000 IN 1980 BUT IBM PASSED IN 1986 MR GATES MADE IBM ANOTHER OFFER THAT MIGHT HAVE GIVEN IBM THE UPPER HAND HE ASKED IBM TO BUY 10 OF MICROSOFT FOR AROUND 70 MILLION TO TRY TO SMOOTH OVER SOME PROBLEMS IN THE RELATIONSHIP IN ANOTHER WORLDBEATING MISCALCULATION IBM DECLINED PASSING UP WHAT COULD HAVE BECOME A 25 BILLION PROFIT BECAUSE IT WORRIED ABOUT SEEMING TO DOMINATE THE PC BUSINESS TOO THOROUGHLY IBM AND MICROSOFT BEGAN THEIR RELATIONSHIP IN 1980 AT OPPOSITE ENDS OF THE BUSINESS SPECTRUM BIG BLUE HAD 340000 EMPLOYEES AND 36 BILLION OF ANNUAL EARNINGS AND MR GATES'S COMPANY WAS A STARTUP WITH 32 EMPLOYEES AND THE SLIMMEST OF PROFITS BUT BY 1989 IBM EXECUTIVES WERE SCRATCHING THEIR HEADS WONDERING HOW TO BRING THEIR INCREASINGLY POWERFUL PARTNER BACK UNDER CONTROL THE JOB FELL TO MR CANNAVINO WHO INHERITED THE TROUBLED PC DIVISION IN JANUARY OF THAT YEAR MR CANNAVINO THEN 44 YEARS OLD HAD GROWN UP ON THE MAINFRAME SIDE OF IBM AND ONCE HAD SNEERED THAT IF GOD HAD MEANT FOR MAN TO HAVE PERSONAL COMPUTERS HE WOULD HAVE BUILT THEM INTO PEOPLE'S WRISTS NOW MR CANNAVINO WAS HAVING TO EDUCATE HIMSELF IN A HURRY ABOUT THE PC BUSINESS HAVING TO DRINK OUT OF A FIRE HOSE AS THEY SAID AT IBM IBM EXECUTIVES KNEW THEY COULDN'T JUST DUMP THE 33YEAROLD MR GATES THEY HAD BEEN TRYING ON AND OFF FOR SIX YEARS TO COME UP WITH A NEW VERSION OF DOS ON THEIR OWN BUT HAD REPEATEDLY FAILED KNOWING THAT IBM NEEDED A SUCCESSOR TO DOS TO GIVE PCS MORE CAPABILITIES AND PULL THEIR BUSINESS OUT OF A HOLE IBM PEOPLE HAD LEARNED TO PUT UP WITH MR GATES'S UNIQUE BUSINESS STYLE HE WAS GENEROUS TO A FAULT WITH ADVICE ABOUT IBM'S MANAGEMENT TELLING EXECUTIVES WHERE HE THOUGHT THEY SHOULD CUT BACK ON PROGRAMMERS HOW THEY SHOULD FOCUS DIFFERENTLY ON A PARTICULAR SOFTWARE PROBLEM AND SO FORTH HE DIDN'T LET UP HE'D SIT IN MEETINGS ROCKING BACK AND FORTH WITH HIS ARMS FOLDED ACROSS HIS STOMACH FIRING OFF IDEAS IN HIS MACHINEGUN STYLE MR CANNAVINO NEVER GOT USED TO IT HE HADN'T GONE TO COLLEGE AND WHILE THAT MADE MOST PEOPLE VIEW HIS SUCCESS AT IBM AS ALL THE MORE EXTRAORDINARY HIS LACK OF FORMAL EDUCATION MADE HIM SENSITIVE TO CONDESCENSION MR GATES DIDN'T HAVE A COLLEGE DEGREE EITHER BUT HE HAD AFTER ALL DROPPED OUT OF HARVARD MR CANNAVINO HAD MERELY SPENT TIME AT A TECHNICAL INSTITUTE WHILE WORKING AT A GROCERY STORE AND AT HIS FAMILY'S PIZZA PARLOR OUTSIDE CHICAGO IF THE RELATIONSHIP BETWEEN MR GATES AND MR CANNAVINO WASN'T SUFFICIENTLY COMPLICATED TO BEGIN WITH THEY WERE TRYING TO FUNCTION SIMULTANEOUSLY AS COLLABORATORS AND COMPETITORS TUSSLING OVER WHAT KIND OF SOFTWARE WOULD SET THE STANDARD FOR THE NEXT GENERATION OF PERSONAL COMPUTERS THE PROBLEM WAS THIS IBM NEEDED AN UPGRADED OPERATING SYSTEM FOR ITS NEW LINE OF PERSONAL COMPUTERS CALLED PS/2 THE LINE THAT WAS SUPPOSED TO RESTORE THE COMPANY'S FORTUNES AN OPERATING SYSTEM IS THE LAYER OF SOFTWARE THAT TRANSLATES A COMPUTER'S BINARY NATIVE TONGUE UNWIELDY STRINGS OF ONES AND ZEROES INTO A FORM SIMPLE ENOUGH FOR A PROGRAMMER TO USE HANDILY ONCE THIS TRANSLATING SOFTWARE IS AVAILABLE PROGRAMMERS CAN DECIDE HOW TO WRITE THE SOFTWARE APPLICATIONS SPREADSHEETS WORDPROCESSING PROGRAMS AND SO ON THAT MAKE A PERSONAL COMPUTER WORTH BUYING WITHOUT THE TRANSLATING SOFTWARE THE THOUSANDS OF INDEPENDENT SOFTWARE COMPANIES THAT WRITE ALL THESE APPLICATIONS SIMPLY CAN'T DO THEIR JOBS MICROSOFT HAD DEVELOPED THE OPERATING SYSTEM FOR IBM'S ORIGINAL LINE OF PCS THE SYSTEM WAS CALLED DOS FOR DISK OPERATING SYSTEM MICROSOFT HAD KEPT THE RIGHTS TO THIS SOFTWARE LICENSING IT TO IBM AND TO ANYONE ELSE WHO WANTED TO BUY IT AN EXTRAORDINARILY LUCRATIVE BUSINESS NOW IBM WANTED TO DEVELOP A BROAD REWRITE OF DOS TO USE IN ITS NEW MACHINES IT HAD ASSIGNED ITS PROGRAMMERS TO WRITE THE NEW SOFTWARE CALLED OS/2 TOGETHER WITH MICROSOFT RECOGNIZING THE SIZE OF THE MISTAKE IT MADE WHEN IT CEDED ROYALTIES ON THE ORIGINAL DOS TO MICROSOFT IBM WANTED TO REGAIN CONTROL OF ITS PC DESTINY BY BRINGING THE OPERATING SYSTEM BACK UNDER ITS AEGIS BUT AT THE SAME TIME MR GATES HAD BEGUN TO DEVELOP AN ADDENDUM TO HIS ORIGINAL DOS OPERATING SYSTEM THAT WOULD LET THE NEW IBM PCS IMITATE THE USERFRIENDLY GRAPHICS MADE WILDLY POPULAR BY APPLE COMPUTER HE CALLED THE ADDENDUM WINDOWS IF A ROBUST WINDOWS TOOK OFF IT WOULD MAKE OS/2 LESS ATTRACTIVE LIKE SO MUCH ELSE AT IBM OS/2 BECAME A CASUALTY OF BUREAUCRATIC SCLEROSIS SOME 1700 PROGRAMMERS WERE WORKING ON OS/2RELATED PROJECTS AT FOUR SITES ON TWO CONTINENTS WITH ALL THOSE PEOPLE WORKING ON THE PROJECT COORDINATION OF THEIR EFFORTS BECAME SO TOUGH THAT THE SOFTWARE MADE LITTLE PROGRESS IT ONLY REINFORCED MR GATES'S CONVICTION THAT IBM WAS JUST TOO CUMBERSOME TO COMPETE IN THE PC MARKET LATER ON HE RECALLED TAKING A BREAK IN AN IBM OFFICE ONE DAY FOR A BOWL OF CEREAL GLANCING IDLY AROUND AND REALIZING THAT MOST OF THE PCS IN USE AROUND HIM WERE MORE THAN SEVEN YEARS OLD THIS TELLS ME MORE ABOUT IBM THAN I'VE EVER SEEN HE SAID AS THE FALL OF 1989 BEGAN THE PROBLEMS WITH OS/2 BECAME A CONTINENTAL DIVIDE FOR THE ENTIRE PC SOFTWARE INDUSTRY HUNDREDS OF COMPANIES HAD STAKED THEIR FUTURES ON OS/2 BY DESIGNING THEIR SPREADSHEETS WORD PROCESSORS AND SUCH TO RUN ON IT THOSE APPLICATIONS WOULDN'T RUN IF THE COMPUTER USER DIDN'T HAVE OS/2 SO IF OS/2 DIDN'T GET ITS ACT TOGETHER FAST THE COMPANIES WERE GOING TO HAVE TO WRITE OFF THE FORTUNES THEY HAD SPENT ON THE DEVELOPMENT BUT THINGS WERE EVEN WORSE THAN THAT IT WAS BECOMING APPARENT THAT MICROSOFT WAS DEVELOPING APPLICATIONS OF ITS OWN TO RUN ON WINDOWS IF WINDOWS TOOK OFF BEFORE OS/2 DID THEN MICROSOFT AS THE ONLY BIG COMPANY WITH WINDOWS APPLICATIONS ON THE MARKET WOULD CLEAN UP MR GATES WAS ALREADY A TOUGH COMPETITOR FAR LARGER THAN ANY OF HIS RIVALS IF WINDOWS SUCCEEDED HE MIGHT BECOME UNSTOPPABLE IBM HAVING ESSENTIALLY GUARANTEED THAT IT WOULD MAKE OS/2 WORK FOUND ITSELF WITH A LOT OF MR GATES'S UNHAPPY SOFTWARE COMPETITORS BEATING ON ITS DOOR MR CANNAVINO HELD A SERIES OF SMALL MEETINGS WITH SOFTWARE MAKERS INCLUDING JIM MANZI LOTUS DEVELOPMENT CORP'S CHIEF EXECUTIVE FRED GIBBONS CHIEF EXECUTIVE OF SOFTWARE PUBLISHING CORP AND DAVE LIDDLE CHIEF EXECUTIVE OF METAPHOR COMPUTER SYSTEMS INC MOST OF THE SOFTWARE EXECUTIVES RESENTED MR GATES THE FEW WHO DIDN'T RESENT HIM HATED HIM MR GATES'S PERSONAL WEALTH HAD JUST PASSED 1 BILLION YET HE SEEMED RAPACIOUS TO HIS LESS FORTUNATE COMPETITORS HE WOULD USE HIS DOMINANCE OF THE SOFTWARE MARKET TO DRIVE THE HARDEST POSSIBLE BARGAIN THE MEETINGS WERE FIERY THE SOFTWARE EXECUTIVES WOULD JUMP ALL OVER MR CANNAVINO SAYING HE'D BETTER CUT MR GATES AND WINDOWS OFF AT THE KNEES MR CANNAVINO WOULD PACE AROUND HIS CONFERENCE ROOM HINTING THAT HE HAD A PLAN THAT WOULD TAKE CARE OF MR GATES THE CRUX OF IT SEEMED TO BE THE THREAT THAT HE MIGHT BE ABLE TO USE SOME LIMITED RIGHTS IBM HAD ACQUIRED FROM MR GATES TO BEGIN SELLING DOS IN DIRECT COMPETITION WITH MICROSOFT RATHER THAN JUST SELLING DOS INSTALLED ON ITS OWN PCS MR CANNAVINO HINTED IBM MIGHT START SELLING PACKAGES THROUGH DEALERS THAT WOULD COMPETE WITH MICROSOFT'S SALES OF RETAIL DOS PACKAGES MR CANNAVINO MIGHT ALSO TRY TO DO DEALS WITH CLONE MAKERS TO GET THEM TO BUY DOS FROM IBM RATHER THAN FROM MICROSOFT DOS WAS STILL BY FAR THE BIGGEST SINGLE PIECE OF MICROSOFT'S BUSINESS SO CUTTHROAT COMPETITION ON PRICING WOULD HAVE STUNG WITH THE PC INDUSTRY ABUZZ OVER THE OBVIOUS FRICTION BETWEEN IBM AND MICROSOFT MR CANNAVINO AND MR GATES DECIDED THEY NEEDED TO SAY SOMETHING ABOUT THE STATE OF THEIR RELATIONS IN EARLY NOVEMBER 1989 AT COMDEX A TRADE SHOW IN LAS VEGAS WHERE ALL THE INDUSTRY'S MAJOR PLAYERS AND SOME 100000 OTHER PEOPLE GATHER EVERY YEAR BOTH SIDES KEPT SENDING TEAMS OF STAFF PEOPLE TO HAMMER OUT ISSUES ALTERNATING BETWEEN REDMOND WASH WHERE MICROSOFT IS BASED AND OFFICES IN WESTCHESTER COUNTY NY SATELLITES OF THE IBM HEADQUARTERS IN ARMONK MR GATES AND MR CANNAVINO OFTEN FLEW OFF TO NEUTRAL SITES IN THE MIDDLE OF THE COUNTRY FOR ONEONONE MEETINGS TO BREAK DEADLOCKS WITH TIME RUNNING OUT THEY FINALLY REACHED A VERY TENTATIVE COMPROMISE MR CANNAVINO WOULD GIVE MR GATES THE ENDORSEMENT OF WINDOWS THAT MR GATES CRAVED IN RETURN MR GATES WOULD STATE THAT WINDOWS WAS AIMED AT LOWEND PERSONAL COMPUTERS WHILE OS/2 WAS THE INDUSTRIALSTRENGTH OPERATING SYSTEM THAT SHOULD BE USED ON MORE POWERFUL PCS AND HE WOULD CONCENTRATE MICROSOFT'S EFFORTS ON DEVELOPING OS/2 DEEMPHASIZING REFINEMENT OF WINDOWS THE COMPROMISE CAME TOO LATE TO ALLOW FOR A FULLFLEDGED CONTRACT WHICH MADE BOTH SIDES A LITTLE NERVOUS BUT BOTH DECIDED THEY WOULD GO AHEAD ASSUMING THAT THINGS WENT WELL AT A FINAL MEETING THEY PLANNED FOR SUNDAY MORNING AT THE HILTON HOTEL IN LAS VEGAS MR GATES AND A FEW OTHER MICROSOFT EXECUTIVES SPENT ALL DAY SATURDAY AND MUCH OF THE NIGHT POUNDING OUT DETAILS OF THEIR VERSION OF THE COMPROMISE WITH IBM THE MEETING AT THE HILTON WAS A SUCCESS THE COMPROMISE HELD SO EVERYONE THEN WENT OFF TO A DINNER THAT HAD BEEN ARRANGED WITH 25 OR SO TOP EXECUTIVES FROM THE BIGGEST PC SOFTWARE COMPANIES A DINNER THAT WAS TO BE A TURNING POINT FOR IBM'S FORTUNES AND FOR THE WHOLE COMPUTER INDUSTRY THE DINNER HAD BEEN ARRANGED HASTILY ONCE IT APPEARED THAT A COMPROMISE WAS POSSIBLE BUT IBM HAD WORKED IT HARD A SENIOR PC EXECUTIVE HAD CALLED AND PERSONALLY INVITED EACH OF THE SOFTWARE EXECUTIVES FOR EACH GUEST IBM ARRANGED TO HAVE ONE OF ITS SENIOR EXECUTIVES ATTEND THE DINNER AS A SORT OF HANDLER GLOMMING ON TO THE SOFTWARE EXECUTIVE SITTING NEXT TO HIM AT DINNER CHATTING HIM UP IBM PLANNED THE SEATING CAREFULLY TO MAKE IT CLEAR WHICH EXECUTIVES WERE CONSIDERED FRIENDS AND WHICH WERE SEEN TO BE TOO CLOSE TO MICROSOFT THE TABLES WERE ARRANGED IN A U SHAPE WITH MR CANNAVINO AND MR GATES NEXT TO EACH OTHER AT THE BOTTOM OF THE U WITH IBM'S FRIENDS ALONG THE CANNAVINO LEG OF THE U AND WITH MICROSOFT'S FRIENDS ALONG THE GATES LEG THE DINNER STRUCK EVERYONE AS ODD RIGHT FROM THE BEGINNING SO MANY RESTAURANTS HAD ALREADY BEEN BOOKED BY OTHER COMPANIES ARRANGING BIG SUNDAY NIGHT DINNERS AT COMDEX THAT THE IBM ORGANIZERS COULD ONLY FIND ROOM AT CHATEAU VEGAS A PLACE THAT WAS TUCKED IN BEHIND THE CONVENTION CENTER AND THAT WITH ITS GARISH REDANDBLACK WALLPAPER MADE SOME OF THE EXECUTIVES THINK THEY'D WALKED INTO AN ECONOMYCLASS COCKTAIL LOUNGE THE ROOM WAS TOO SMALL AND THE CEILING WAS LOW THE 60 EXECUTIVES THERE FELT AS THOUGH THEY WERE SITTING ON TOP OF EACH OTHER MR GATES AND MR CANNAVINO WERE SITTING IN A SORT OF BOOTH AT THE HEAD OF THE TABLE MAKING IT HARD FOR THEM TO STAND UP AND SPEAK A NOISY AIR CONDITIONER AT THE FAR END OF THE TABLE DRIPPED ON THOSE SITTING UNDERNEATH IT AND DROWNED OUT MOST OF WHAT MR GATES AND MR CANNAVINO SAID A SOUND SYSTEM HAD BEEN INSTALLED BUT IT WORKED ONLY INTERMITTENTLY DINNER CONSISTED OF PLATES PILED HIGH WITH STEAK CHICKEN AND LOBSTER FAR MORE FOOD THAN ANYONE COULD EAT AND MORE THAN ANYONE EVEN CARED TO LOOK AT THE IBM HANDLER SITTING NEXT TO FRED GIBBONS OF SOFTWARE PUBLISHING WAS SO DRUNK THAT THOSE AROUND HIM KEPT WATCHING TO SEE WHETHER HE'D FALL FACE DOWN INTO HIS MOUND OF FOOD MR CANNAVINO AND MR GATES TALKED BRIEFLY TO LAY OUT THE COMPROMISE THEY STUCK PRETTY MUCH TO THE SCRIPT BUT NEITHER COULD QUITE BRING HIMSELF TO GO ALL THE WAY MR CANNAVINO NEVER REALLY ENDORSED WINDOWS AND MR GATES NEVER COMPLETELY SAID THAT WINDOWS DEVELOPMENT WOULD BE CURTAILED FROM THEN ON EACH WAS ANNOYED AT WHAT HE SAW AS THE OTHER'S EVASIONS QUESTIONS WERE THEN INVITED THERE WERE ONLY A FEW BUT THEY WERE TELLING ONE PERSON ASKED MR CANNAVINO POINTBLANK WHETHER HE WAS ENDORSING WINDOWS MR CANNAVINO FUDGED MR GIBBONS AN IBM ALLY THEN STOOD UP AND SAID TO MR GATES BILL YOU WALKED INTO MY OFFICE A WHILE BACK AND TOLD ME I SHOULD BE DEVELOPING APPLICATIONS FOR WINDOWS ARE YOU NOW WALKING INTO MY OFFICE AND TELLING ME I SHOULD BE DEVELOPING APPLICATIONS FOR OS/2 INSTEAD MR CANNAVINO ASSUMED THE ANSWER WAS GOING TO BE YES INSTEAD MR GATES GAVE A LONG COMPLICATED ANSWER THAT INDICATED HE THOUGHT SOFTWARE DEVELOPERS SHOULD DO APPLICATIONS BOTH FOR WINDOWS AND FOR OS/2 DAVE LIDDLE THE CHIEF EXECUTIVE OF METAPHOR COMPUTER SITTING NEXT TO MR CANNAVINO TRIED TO CLARIFY TO HOLD THE COMPROMISE TOGETHER OK BILL HE SAID BUT IF YOU WERE ADVISING THE PEOPLE IN THIS ROOM ABOUT HOW THEY SHOULD SPEND THEIR DEVELOPMENT DOLLARS YOU'D SUGGEST THEY SPEND THEM ON OS/2 RIGHT MR CANNAVINO WAITED ASSUMING THAT HE'D FINALLY HEAR A SIMPLE AFFIRMATIVE INSTEAD MR GATES SAID THE PEOPLE IN THIS ROOM ARE ALL THE HEADS OF THEIR OWN SOFTWARE COMPANIES THEY'RE ALL BRIGHT PEOPLE WHO ARE FULLY CAPABLE OF MAKING UP THEIR OWN MINDS I WOULDN'T PRESUME TO TELL THEM HOW TO RUN THEIR BUSINESSES MR CANNAVINO WAS LIVID THE SOFTWAREINDUSTRY EXECUTIVES WHO HAD MET WITH HIM AHEAD OF TIME WERE STUNNED MICROSOFT WASN'T GOING TO CUT OFF WINDOWS THEY THOUGHT INSTEAD IT SEEMED DETERMINED TO MAKE WINDOWS SUCCEED AND IT NOW SEEMED THAT WINDOWS WOULD BECOME POPULAR LONG BEFORE OS/2 MR CANNAVINO HAD SEEMED TO THINK HE COULD BRING MR GATES TO HEEL BUT THE SOFTWARE EXECUTIVES SUDDENLY REALIZED THAT MR GATES HAD BECOME TOO POWERFUL EVEN FOR IBM TO HANDLE THAT'S WHEN I KNEW THE GAME WAS OVER MR GIBBONS SAYS THE NUMBERS WERE ON THE SCOREBOARD AND MICROSOFT HAD WON MR MANZI OF LOTUS ANNOYED AT HOW THINGS WERE GOING GOT UP AND WALKED OUT WHEN THE DINNER BROKE UP AND SOME PEOPLE GATHERED AROUND MR GATES MR CANNAVINO TRIED TO SHOVE THROUGH THE GROUP TO DEMAND AN EXPLANATION BUT A GATES ASSISTANT HEADED MR CANNAVINO OFF PROMISING THAT THEY'D ALL GET TOGETHER TO TALK LATER MR GATES IN THE MIDDLE OF A CROWD WANDERED OFF OBLIVIOUS TO MR CANNAVINO'S HEATED CONCERNS WHEN THE SOFTWARE EXECUTIVES WENT OUTSIDE THEY FOUND THAT THE IBM ORGANIZERS HAD SLIPPED UP THERE WAS A LONG LINE OF LIMOUSINES OUTSIDE WAITING TO TAKE THE IBM EXECUTIVES BACK TO THE LAS VEGAS HILTON BUT NO CARS FOR ANYONE ELSE AND THE RESTAURANT WAS FAR ENOUGH OUT OF THE WAY THAT TAXIS WERE HARD TO COME BY THE IBM EXECUTIVES TROOPED OUT PILED INTO THEIR LIMOS AND DROVE OFF LEAVING AN IMPORTANT GROUP OF POTENTIAL ALLIES STRANDED ON THE CURB SEVERAL GAVE UP AND HIKED BACK TO THE HILTON THEY GATHERED IN THE BAR TO HASH THROUGH WHAT THEY HAD JUST WITNESSED AND FINDING A GROUP OF REPORTERS CAMPED OUT THERE LAMENTED IN FRONT OF THEM ABOUT HOW THE IBMMICROSOFT COMPROMISE HAD FALLEN APART THROUGHOUT THE NEXT DAY MONDAY MR GATES AND MR CANNAVINO STRUGGLED TO PATCH UP THEIR DIFFERENCES THEY SETTLED INTO A TRAILER IN THE PARKING LOT BEHIND THE CONVENTION CENTER WHERE MR CANNAVINO HAD A MOBILE OFFICE COMPLETE WITH BIG DESK PLUSH CARPETING A BATHROOM SEVERAL PHONE LINES AND ROOM FOR SEVERAL ASSISTANTS MR CANNAVINO DIDN'T WANT HIS EXECUTIVES TO MISS OUT ON THE COMFORTS OF HOME WHILE THEY WORKED AT THE TRADE SHOW SO HE HAD OUTFITTED EIGHT LAVISH TRAILERS AND HAD THEM DRIVEN CROSS COUNTRY TO LAS VEGAS FROM NEW YORK MR GATES WENT ALL THE WAY THROUGH THE DAY AND MOST OF THE WAY THROUGH THE NIGHT SOMETIMES MEETING JUST WITH MR CANNAVINO AND SOMETIMES GETTING CAUGHT ALONE WITH AS MANY AS NINE IBMERS WHEN HE LEFT THE TRAILER SHORTLY BEFORE DAWN IT SEEMED THAT THE COMPROMISE WAS BACK IN PLACE MR CANNAVINO HOWEVER STILL WASN'T CONVINCED HE DIDN'T QUITE SEE WHAT ALL THE FUSS WAS ABOUT WINDOWS TO A MAINFRAME GUY LIKE MR CANNAVINO WINDOWS FELT LIKE A TOY OPERATING SYSTEM MR CANNAVINO ASSUMED CUSTOMERS WANTED SOMETHING SOLID SOMETHING THAT WASN'T GLITZY SOMETHING THAT FELT LIKE A MAINFRAME IN OTHER WORDS SOMETHING LIKE OS/2 SO MR CANNAVINO DIDN'T WANT SOFTWARE DEVELOPERS OR CUSTOMERS THINKING HE WAS ENDORSING WINDOWS DESPITE THE COMPROMISE HE HAD WORKED OUT WITH MR GATES IN THE LATE MORNING SOME OF MR CANNAVINO'S HANDLERS BEGAN RUNNING HIM THROUGH A SERIES OF MOCK QUESTIONS THAT THEY THOUGHT MIGHT COME UP AT THE NEWS CONFERENCE THAT AFTERNOON THE FIRST QUESTION WAS OF COURSE AREN'T YOU REALLY SAYING THAT YOU'RE ENDORSING WINDOWS HELL NO MR CANNAVINO EXCLAIMED ONE OF THE QUESTIONERS THEN SAID IT LOOKS LIKE A DUCK IT WALKS LIKE A DUCK AND IT QUACKS LIKE A DUCK SO IT MUST BE A DUCK MEANING THAT MR CANNAVINO CERTAINLY SEEMED TO BE BACKING WINDOWS MR CANNAVINO WAS ASTONISHED HE HAD SOMEHOW CONVINCED HIMSELF THAT HE WAS OFFERING THE MILDEST OF ENDORSEMENTS FOR WINDOWS AND THAT EVERYONE IN THE INDUSTRY WOULD STILL UNDERSTAND THAT OS/2 WAS THE FUTURE HE GLANCED AROUND THE ROOM AT HIS FELLOW IBMERS AND SAID THAT IF EVEN ONE PERSON MIGHT INTERPRET HIS COMMENTS AS FULLFLEDGED SUPPORT FOR WINDOWS THEN PERHAPS HE SHOULD CANCEL THE NEWS CONFERENCE EVEN WHEN MR CANNAVINO LEFT HIS TRAILER AND STARTED WALKING THROUGH THE CONVENTION CENTER HE WAS TELLING HIS ASSISTANTS HE WASN'T SURE HE SHOULD PROCEED WITH THE EVENT WHEN THEY ARRIVED AT THE ENTRANCE TO THE NEWS CONFERENCE ROOM THEY DISCOVERED JUST HOW MANY PEOPLE WANTED TO HEAR MR CANNAVINO'S POSITION ON WINDOWS THE ROOM WAS SUPPOSED TO HOLD ONLY 140 PEOPLE BUT 800 PEOPLE SHOWED UP TO WATCH THE FIREWORKS ALL JOCKEYING FOR POSITION AS THEY TRIED TO CRAM INTO THE ROOM SOME OF MR CANNAVINO'S STAFF WERE FORCED TO CALL SECURITY GUARDS TO KEEP THE RESTLESS CROWD UNDER CONTROL MR CANNAVINO HAD TO SHOVE HIS WAY THROUGH THE CROWD AS HE APPROACHED THE DOOR MR GATES COMING ALONG A FEW MINUTES LATER SAW THE HUGE CROWD IN THE HALL AND WONDERED ALOUD WHETHER HE AND MR CANNAVINO SHOULD JUST HOLD THE NEWS CONFERENCE IN THE CORRIDOR WHERE THERE WAS MUCH MORE ROOM BUT THE IBMERS WERE SET UP INSIDE SO THEY WEREN'T ABOUT TO ALTER THEIR PLANS AS MR GATES STOOD AT THE PODIUM MR CANNAVINO ARMS CROSSED AND A SCOWL ON HIS FACE WAS STANDING 15 FEET AWAY IT SEEMED MR CANNAVINO WANTED TO PUT AS GREAT A DISTANCE AS POSSIBLE BETWEEN HIMSELF AND MR GATES EVEN WHEN MR GATES INVITED HIM TO THE PODIUM MR CANNAVINO NEVER GOT CLOSER THAN SIX OR SEVEN FEET THE TWO ADHERED TO THEIR SCRIPT ON THE COMPROMISE WITH MR CANNAVINO OFFERING HALFHEARTED SUPPORT FOR WINDOWS AND MR GATES HOLDING OUT THE PROSPECT THAT OS/2 WAS THE FUTURE BUT THINGS FELL APART ONCE THE QUESTIONS BEGAN THE STRAINS BETWEEN THEM BECAME APPARENT JUST AS THEY HAD TO THOSE WHO ATTENDED THE DINNER TWO NIGHTS BEFORE OF COURSE THE FIRST QUESTION WAS WHETHER IBM WAS FINALLY COMMITTING ITSELF TO INSTALLING WINDOWS ON ITS HARDWARE AND ENCOURAGING SOFTWARE DEVELOPERS TO WRITE APPLICATIONS THAT WOULD RUN ON WINDOWS MR CANNAVINO SWALLOWED HARD SHIFTED HIS WEIGHT AND GAVE A RAMBLING 400WORD NONANSWER WHEN SOMEONE FOLLOWED UP WITH A QUESTION TO TRY TO PIN MR CANNAVINO DOWN HE RESPONDED WITH AN EVEN LONGER EQUIVOCATION MR CANNAVINO LEFT THE NEWS CONFERENCE SURE HE HAD ARTFULLY AVOIDED ANY PUBLIC COMMITMENT TO WINDOWS BUT HE SEEMED TO BE THE ONLY ONE IN THE INDUSTRY WITH THAT IMPRESSION MR CANNAVINO HAD DONE IRREPARABLE DAMAGE HE HAD LOST FACE WITH THE SOFTWARE INDUSTRY AND UNINTENTIONALLY PUSHED THEM TO ABANDON OS/2 AND EMBRACE WINDOWS WHICH THE FOLLOWING YEAR WOULD TAKE THE WORLD BY STORM MR CANNAVINO ALSO LEFT THE ROOM THINKING HE RETAINED AT LEAST MODEST CONTROL OVER MICROSOFT PEOPLE ON HIS STAFF SAID LATER BUT HE WAS ALONE IN THAT OPINION TOO MANY OF THE REPORTERS COVERING THE CONFERENCE HAD BEEN AT ONE OF THE BARS IN THE HILTON TWO NIGHTS BEFORE LISTENING TO EXECUTIVES FROM INDEPENDENT SOFTWARE COMPANIES GROUSE ABOUT HOW MR GATES HAD RUN ROUGHSHOD OVER MR CANNAVINO AT DINNER NOW IT WAS BECOMING CLEAR TO EVERYONE IN THE INDUSTRY AT LEAST TO EVERYONE OUTSIDE IBM MR GATES WAS TAKING CONTROL OF THE DIRECTION OF THE SOFTWARE INDUSTRY AND SOON HE WOULD BE UNSTOPPABLE 9308160146 930816 WHAT'S NEWS BUSINESS AND FINANCE TRADE NEGOTIATORS FOR THE US CANADA AND MEXICO RESOLVED LABOR AND ENVIRONMENTAL ISSUES THAT WERE STALLING THE NORTH AMERICAN FREE TRADE PACT BUT THE ARRANGEMENTS SEEMED TO ALIENATE MORE US LAWMAKERS THAN THEY CONVERTED GETTING THE PACT THROUGH CONGRESS IS LIKELY TO REQUIRE AN ALLOUT EFFORT BY CLINTON WHICH HE DOESN'T SEEM READY TO MAKE HOUSE MAJORITY LEADER GEPHARDT SAID HE COULDN'T SUPPORT THE PRESENT PACT CONSUMER PRICES EDGED UP 01 LAST MONTH SUGGESTING THAT INFLATION IS IN CHECK AND THAT A BOOST IN SHORTTERM INTEREST RATES ISN'T IMMINENT WHILE THE CONSUMER PRICE REPORT COMES ON TOP OF OTHER ENCOURAGING INFLATION NEWS A RECENT SURVEY FOUND CONSUMER CONFIDENCE FELL AGAIN IN EARLY AUGUST THE DOLLAR FELL TO 10115 YEN MONDAY MORNING IN TOKYO ITS NINTH RECORD LOW IN 12 TRADING DAYS TRADERS EXPECT THE JAPANESE CURRENCY TO KEEP STRENGTHENING IN THE NEAR TERM THE SOCALLED PARITY LEVEL OF 100 YEN TO A DOLLAR COULD BE REACHED THIS WEEK BAXTER INTERNATIONAL WAS TEMPORARILY BARRED FROM BIDDING FOR NEW CONTRACTS FROM FEDERAL AGENCIES BUT THE BAN WHICH MARKS ANOTHER BLOW TO BAXTER'S REPUTATION WILL AFFECT A RELATIVELY SMALL AMOUNT OF THE HOSPITALSUPPLY COMPANY'S OVERALL BUSINESS ENGINE MAKERS FOR BOEING'S 777S ARE EXPERIENCING DEVELOPMENT PROBLEMS PRESSURING TEST SCHEDULES DESIGNED TO HAVE THE FIRST OF THE 330SEAT JETS READY FOR DELIVERY IN MAY 1995 PRUDENTIAL SECURITIES AGREED TO PAY 120 MILLION TO SETTLE A CLASSACTION LAWSUIT BROUGHT BY 130000 ENERGYPARTNERSHIP INVESTORS SALES OF VEHICLES BUILT IN NORTH AMERICA IN THE FIRST 10 DAYS OF AUGUST FELL SHARPLY FROM JULY HITTING THEIR LOWEST RATE SINCE FEBRUARY EXECUTIVE LIFE INSURANCE'S TRANSFER OF MORE THAN 7 BILLION IN POLICIES TO A NEW FRENCHCONTROLLED COMPANY WAS APPROVED BY A CALIFORNIA JUDGE DONNA KARAN CORP ANNOUNCED PLANS TO GO PUBLIC THE OFFERING COMES AS FASHION DESIGNER DONNA KARAN IS SPLITTING WITH LONGTIME PARTNERS AND BACKERS AND JUST AS EFFORTS AT DIVERSIFICATION ARE POSTING SIZABLE LOSSES WANG LABORATORIES WILL EMERGE FROM CHAPTER 11 NEXT MONTH WITH ONE OF THE STRONGEST BALANCE SHEETS IN THE COMPUTER INDUSTRY WANG'S CEO SAID PHILIPS ELECTRONICS' MEDIA AND ELECTRONIC SOFTWARE GROUP PLANS TO ANNOUNCE TODAY A REORGANIZATION OF ITS MEDIA PROPERTIES TO CREATE DIGITAL PRODUCTS FOR A VARIETY OF FORMATS JAPAN'S DAIWA BANK AGREED TO PROVIDE FUNDS TO COSMO SECURITIES IN EXCHANGE FOR AN EQUITY STAKE THE MOVE AT A COST OF UP TO 781 MILLION COULD BE JUST THE FIRST OF MANY BAILOUTS TO COME IN THE JAPANESE BROKERAGE INDUSTRY STOCKS VOLUME 212752020 SHARES DOW JONES INDUSTRIALS 356965 UP 056 TRANSPORTATION 161894 UP 107 UTILITIES 25073 UP 053 BONDS LEHMAN BROTHERS TREASURY INDEX 544481 UP 1032 COMMODITIES OIL 1814 A BARREL OFF FOUR CENTS DOW JONES FUTURES INDEX 12465 UNCHANGED SPOT INDEX 12309 UP 021 DOLLAR 10180 YEN OFF 115 17115 MARKS OFF 00044 9308160145 930816 TECHNOLOGY MICROSOFT MODIFIES ITS MSDOS 60 TO PROTECT DATA BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL AFTER MONTHS OF DENYING RUMORS OF GLITCHES IN ITS POPULAR PERSONALCOMPUTER OPERATING SYSTEM MSDOS 60 MICROSOFT CORP YESTERDAY CONFIRMED IT IS READYING AN UPGRADED VERSION THAT WILL CONTAIN NEW FEATURES DESIGNED TO PROTECT DATA MSDOS 60 HAS A FEATURE CALLED DOUBLESPACE WHICH USES COMPRESSION TECHNOLOGY TO DOUBLE THE STORAGE SPACE ON A USER'S HARD DISK HOWEVER THAT FEATURE HAS BEEN THE SUBJECT OF NEGATIVE REPORTS BY THE TRADE MAGAZINE INFOWORLD WHICH SAID CUSTOMERS USING IT HAD LOST DATA WHILE MICROSOFT OFFICIALS CONTINUE TO DEFEND THE PRODUCT AS INCREDIBLY SUCCESSFUL SELLING FIVE MILLION UNITS WITHIN 90 DAYS OF ITS MARCH 31 LAUNCH MICROSOFT CONFIRMED THAT IT WILL ISSUE AN IMPROVED VERSION OF MSDOS 60 AT AN UNSPECIFIED DATE THE NEWS WAS FIRST REPORTED BY THE TRADE PUBLICATION COMPUTER RESELLER NEWS MICROSOFT SAID ITS OWN EXAMINATIONS FAILED TO TURN UP ANY BUGS IN MSDOS 60 THAT WOULD SUPPORT THE INFOWORLD REPORTS STILL THE COMPANY CONFIRMED CUSTOMERS HAVE LOST DATA IN CERTAIN INSTANCES THAT IT BELIEVED INVOLVED OLDER HARD DISKS WE'VE BEEN TALKING TO CUSTOMERS AND THEY LIKE WHAT'S THERE SAID TONY AUDINO MARKETING DIRECTOR FOR MSDOS BUT HE ADDED THAT CUSTOMERS HAVE ALSO GIVEN US IDEAS AS TO HOW TO MOVE THE TECHNOLOGY FORWARD THE THRUST OF THE NEW TECHNOLOGY IS DATA PROTECTION MR AUDINO SAID HE LIKENED THE ENHANCEMENTS TO ADDING A PASSENGER'S SIDE AIRBAG TO A VEHICLE ALREADY EQUIPPED WITH A DRIVER'S SIDE AIRBAG AND ANTILOCK BRAKES MR AUDINO DECLINED TO SPECULATE WHEN THE NEW VERSION MIGHT BE SHIPPED BUT HE PROMISED MICROSOFT WILL MAKE THE UPGRADE AVAILABLE TO USERS OF MSDOS 60 THROUGH 62 VERY INEXPENSIVELY WHETHER CUSTOMERS HAD OBTAINED THE SYSTEM DIRECTLY FROM MICROSOFT OR IN COMPUTERS PURCHASED THROUGH ORIGINAL EQUIPMENT MANUFACTURERS 9308160144 930816 CREDIT MARKETS BOND YIELDS' FALL DOESN'T SCARE BUYERS PURSUIT OF HIGH RATES IS VIEWED BY SOME AS DRIVEN BY PANIC BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CALL IT THE BOND MARKET ROMANCE IT SEEMS THAT NO MATTER WHAT HAPPENS INVESTORS KEEP RUSHING INTO THE ARMS OF THE BOND MARKET AS YIELDS SWOON BUT AS IN MANY AGING ROMANCES ONE PARTNER IS BEGINNING TO TAKE THE OTHER FOR GRANTED SOME INVESTORS ARE TAKING DECLINING INTEREST RATES AS A GIVEN AS BOND PRICES RALLIED LAST WEEK BUYERS CONSISTED OF BOTH SPECULATORS AND MUTUAL FUND MANAGERS WHO WERE SCRAMBLING TO PUMP UP FLAGGING FUND YIELDS JUST THE KIND OF PEOPLE WHO MIGHT JUMP SHIP AT THE SLIGHTEST SIGN OF TROUBLE THERE ARE A LOT MORE SPECULATIVE PLAYERS IN THE MARKET THAN USUAL SAYS DAVID ADER A TREASURY MARKET ANALYST AT TECHNICAL DATA A UNIT OF THOMSON FINANCIAL SERVICES THE BOND IS IN ITS OWN WORLD SAYS DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC THERE ARE TOO MANY WEIRD THINGS GOING ON THE YIELD ON THE 30YEAR TREASURY BOND AUCTIONED LAST WEEK DROPPED TO 635 BY FRIDAY FROM A WHENISSUED YIELD OF 646 THE WEEK BEFORE PRIOR TO LAST WEEK YIELDS HAD NEVER BEEN THAT LOW SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE 30YEAR BOND IN 1977 THE YIELD ON THE 10YEAR NOTE AUCTIONED LAST WEEK DROPPED TO 571 FROM A WHENISSUED 580 THE PREVIOUS WEEK BEFORE THIS SUMMER THE LAST TIME THE 10YEAR NOTE YIELDED SO LITTLE WAS IN THE SPRING OF 1971 WHAT DROVE US DURING THE WEEK WAS PANIC BUYING SAYS MR ADER INVESTORS WERE LIKE LEMMINGS AND THINKING THE MARKET IS UP I'M NOT INVOLVED LET'S BUY' HE SAYS IT IS INTERESTRATEINSENSITIVE BUYING ACCORDING TO TRADERS MANY INVESTORS HAVE BEEN SPECULATING ON A NARROWING GAP BETWEEN YIELDS ON 30YEAR BONDS AND SHORTERTERM TREASURYS AS LONG AS THE GAP NARROWS THEY WIN THAT WOULD HAPPEN IF SHORTTERM RATES RISE AND LONGTERM RATES REMAIN UNCHANGED IT WOULD ALSO HAPPEN IF LONGTERM RATES FALL FASTER THAN SHORTTERM RATES OR SHORTTERM RATES ROSE MORE QUICKLY THAN LONGTERM RATES IN THE PAST THREE YEARS PEOPLE SPECULATING ON A NARROWING YIELD GAP HAVE HAD LITTLE LUCK BECAUSE THE GAP HAS STUBBORNLY STAYED WIDE BUT SINCE EARLY JULY THE DISPARITY BETWEEN TWOYEAR NOTES AND 30YEAR BONDS HAS NARROWED 033 PERCENTAGE POINT TO 238 PERCENTAGE POINTS A YEAR AGO IT WAS 344 PERCENTAGE POINTS MORE THAN 80 OF THE RECENT CHANGE HAS COME FROM THE GAP CLOSING BETWEEN 10YEAR NOTES AND 30YEAR BONDS ANOTHER FACTOR FUELING THE RALLY IS A JUMP IN THE AMOUNT OF MONEY BEING THROWN BY YIELDHUNGRY INVESTORS INTO BOND MUTUAL FUNDS NEW MONEY GOING INTO BONDS FUNDS HAS AVERAGED ABOUT 25 BILLION A WEEK SINCE EARLY JULY ACCORDING TO AMG DATA SERVICES OF ARCATA CALIF EARLIER THIS SUMMER THE AVERAGE WAS ABOUT 15 BILLION AT THE SAME TIME MANY OF THE OLDER HIGHERYIELDING BONDS IN THESE FUNDS ARE BEING CALLED AWAY FROM INVESTORS AS RATES PLUNGE THAT'S BECAUSE EVERYONE FROM HOMEOWNERS TO CORPORATIONS IS REFINANCING DEBT AT LOWER RATES AS A RESULT FUNDS SWAMPED WITH CASH FIND THEMSELVES SCRAMBLING TO FIND SECURITIES WITH HIGHER YIELDS NOTABLY 30YEAR TREASURY BONDS LAST WEEK THERE WAS TREMENDOUS PRESSURE ON PENSION FUNDS MUTUAL FUNDS AND OTHER INVESTORS SAYS JAMES SOMERS AN ARBITRAGE TRADER WHO RUNS SOMERS ASSET MANAGEMENT IN A STAGNANT ECONOMY PEOPLE WHO GET MONEY IN AND HAVE TO GET IT TO WORK RIGHT AWAY FEEL COMPELLED TO REACH FOR AS MUCH YIELD AS THEY CAN HE SAYS MONEY MANAGERS NEED LONGTERM SECURITIES MORE THAN EVER THESE DAYS TO LENGTHEN WHAT IS KNOWN AS THE AVERAGE DURATION OF THEIR PORTFOLIOS DURATION IS A MEASURE OF A BOND'S INTERESTRATE SENSITIVITY IT ISN'T THE SAME THING AS MATURITY IT'S THE WORD BOND TRADERS USE FOR A MAGIC PERIOD IN A BOND'S LIFE AT WHICH THE RETURN TO INVESTORS WOULD BE ABOUT THE SAME NO MATTER WHETHER INTEREST RATES HAD RISEN OR FALLEN OF COURSE BOND INVESTORS HATE THE PRINCIPALERODING POTENTIAL OF RATE INCREASES BUT THERE'S A BRIGHT SPOT EVERY TIME THEY GET A BOND INTEREST PAYMENT THEY CAN REINVEST IT AT HIGHER RATES TOO HENCE RETURNS CAN TAKE A VARIETY OF INTERESTRATE ROUTES AND WIND UP IN THE SAME SPOT AT SOME FUTURE DATE THE DURATION OF A 10YEAR TREASURY NOTE YIELDING 6 THIS SPRING WAS BETWEEN SEVEN AND 7 1/2 YEARS BY THAT TIME IN THAT NOTE'S LIFE POTENTIAL BONDPRICE CHANGES AS RATES GO DOWN OR UP WOULD BE ABOUT EQUALLY OFFSET BY CHANGES IN THE AMOUNT OF INTEREST RECEIVED BY REINVESTING INTEREST PAYMENTS AT HIGHER RATES FALLING INTEREST RATES HAVE WREAKED HAVOC ON THE AVERAGE DURATION OF PORTFOLIOS MONEY MANAGERS WHO SNAPPED UP MORTGAGEBACKED SECURITIES OR BONDS THAT NOW CAN BE CALLED AWAY ARE PARTICULARLY AFFECTED THE DURATION OF THESE SECURITIES SHORTENS MUCH MORE QUICKLY IN REACTION TO INTERESTRATE MOVES THAN OTHER SECURITIES MONEY MANAGERS ARE SCRAMBLING TO MAKE UP FOR LOST DURATION BY LOADING UP ON LONGERTERM SECURITIES WITH LONGER DURATIONS AND GREATER TENDENCY TO ZIGZAG IN PRICE SOME OF THEIR FAVORITES ARE 10YEAR NOTES AND 30YEAR TREASURY BONDS AND LONGTERM CORPORATE BONDS MATURING IN 40 50 OR EVEN 100 YEARS PLAYERS AND INVESTORS AREN'T BUYING THESE THINGS FOR GREAT VALUE FOR THE LONG HAUL SAYS MR ADER THEY ARE BUYING BECAUSE OF THIS NEED TO GET MORE DURATION INTO THEIR PORTFOLIOS AS RATES FALL THE DURATION EXTENDS IN THE BENCHMARKS AGAINST WHICH BOND FUNDS MEASURE THEIR PERFORMANCE THE 30YEAR TREASURY BOND IS PARTICULARLY ATTRACTIVE TO THESE MONEY MANAGERS BECAUSE IT IS NONCALLABLE UNLIKE MOST CORPORATE BONDS THIS APPEAL COMBINED WITH A REDUCTION OF 30YEAR BOND AUCTIONS FROM FOUR TO JUST TWO A YEAR ALSO HELPED TO BOOST PRICES AND DEPRESS YIELDS SOME SAY THE IMPORTANCE OF THE 30YEAR TREASURY BOND AS A NIFTY PORTFOLIO STUFFER HAS BEEN EXAGGERATED NOT ALEX POWERS HEAD OF TAXABLE FIXEDINCOME FUNDS AT CHASE MANHATTAN PRIVATE BANK A UNIT OF CHASE MANHATTAN BANK WE ADDED UP ALL THE OUTSTANDING TREASURY SECURITIES WITH DURATIONS OF LONGER THAN 10 YEARS AND CAME UP WITH ABOUT 150 BILLION HE SAYS THE 30YEAR TREASURY BOND HAS A DURATION OF ABOUT 13 YEARS AFTER LAST WEEK'S BOND RALLY HOWEVER SOME ARE CONVINCED THAT THE MARKET IS DUE FOR A CORRECTION WITH THE 30YEAR BOND YIELD MOVING BACK TO ABOUT 650 OTHERS ARE EVEN MORE WORRIED ABOUT THE YIELDS OF INTERMEDIATE TREASURY SECURITIES MATURING IN FIVE TO 10 YEARS INTERMEDIATES ARE OVERVALUED PARTLY BECAUSE OF MUNICIPAL DEFEASANCE PROGRAMS SAYS MR POWERS CITIES AND STATES HAVE RUSHED TO REFINANCE OLDER HIGHERYIELDING BONDS AS RATES HAVE DROPPED BUT MANY OF THESE BONDS AREN'T YET CALLABLE SO MUNICIPALITIES SELL NEW BONDS AND INVEST THE PROCEEDS IN INTERMEDIATE TREASURY SECURITIES IN THE MEANTIME THESE SOCALLED DEFEASANCE PROGRAMS LOCK IN TODAY'S LOW RATES BUT INVESTORS MAY BE TOO COMPLACENT DESPITE RECENT REPORTS OF LOW INFLATION AND CONTINUED ECONOMIC SLUGGISHNESS BOTH GOOD FOR BONDS THE BOND MARKETS ARE EXTRAPOLATING VERY RECENT ECONOMIC NUMBERS AS IF THEY WILL GO ON INDEFINITELY SAYS LEIF H OLSEN AN ECONOMIC CONSULTANT WHO RUNS A FIRM BEARING HIS NAME IN NEW CANAAN CONN THE MARKET IS VERY VULNERABLE BECAUSE IT'S COUNTING ON A CONTINUOUS STREAM OF GOOD NEWS AND THAT'S NOT HOW THE WORLD WORKS ANOTHER ROUND OF GOOD NEWS ON INFLATION DREW MORE BUYERS INTO THE TREASURY MARKET FRIDAY WITH PARTICULAR INTEREST CONCENTRATED AMONG SECURITIES MATURING IN TWO TO 10 YEARS THE FIVEYEAR NOTE FOR EXAMPLE ROSE MORE THAN 1/4 POINT OR MORE THAN 250 FOR A BOND WITH A 1000 FACE VALUE TO 100 25/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE DROPPED TO 506 FROM 512 THE DAY BEFORE THE CATALYST FOR FRIDAY'S GAINS WAS A LABOR DEPARTMENT REPORT THAT THE CONSUMER PRICE INDEX ROSE JUST 01 IN JULY A SIGN OF WEAK INFLATION BOND INVESTORS WELCOME NEWS OF LOWER INFLATION BECAUSE INFLATION REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN MOST ANALYSTS SAID THE CPI REPORT A DECLINE IN PRODUCER PRICES AND RECENT DROPS IN GOLD AND COMMODITY PRICES REMOVE THE NEARTERM THREAT OF INFLATION TRADERS AND ANALYSTS SAID THE WEEK'S INFLATION DATA ALL BUT REMOVED THE THREAT OF A MOVE TO RAISE SHORTTERM INTEREST RATES BY THE FEDERAL RESERVE SOME SAID THE RECENT INFLATION NEWS SHOULD PROMPT THE FED TO ABANDON THE BIAS TOWARD RAISING RATES THAT IT ADOPTED IN MAY THE POLICYMAKING FEDERAL OPEN MARKET COMMITTEE IS SLATED TO MEET TOMORROW TO DISCUSS THE ISSUE THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9308160143 930816 THAI DISASTER AT HOTEL BRINGS SAFETY PROMISES OFFICIALS VOW TO ENFORCE CODES AFTER COLLAPSE VIVIDLY POINTS TO LAPSES BY CYNTHIA OWENS STAFF REPORTER OF THE WALL STREET JOURNAL BANGKOK THAILAND FOR THE SECOND TIME IN THREE MONTHS A DISASTER HAS FORCED THE THAI GOVERNMENT TO PROMISE STRICTER ENFORCEMENT OF BUILDING AND SAFETY CODES AT LEAST 100 PEOPLE DIED AND MORE THAN 270 WERE INJURED WHEN A HOTEL COLLAPSED IN A NORTHEASTERN PROVINCIAL CAPITAL ON FRIDAY BUT WHILE CALLING FOR TOUGHER STANDARDS PRIME MINISTER CHUAN LEEKPAI ACKNOWLEDGED THAT OTHER BUILDINGS POSED HAZARDS AND THAT INFLUENCE AND GREED HAD HAMPERED ENFORCEMENT OF EXISTING REGULATIONS NO AMOUNT OF MONEY CAN COMPENSATE FOR THE LOSSES HE SAID IN A TELEVISED STATEMENT THE PEOPLE IN AUTHORITY MUST BE AWARE OF THEIR RESPONSIBILITIES AND THEIR DUTY TO THE PUBLIC AND MUST BE BEYOND LOCAL INFLUENTIAL PEOPLE AND POLITICIANS THE ROYAL PLAZA HOTEL THAT COLLAPSED ON FRIDAY RECENTLY HAD THREE FLOORS ADDED TO THE ORIGINAL FOURSTORY STRUCTURE AND SEVERAL HUGE WATER TANKS WERE JUST BUILT ON THE ROOF INVESTIGATORS ARE CENTERING THEIR PROBE AROUND THOSE UNAUTHORIZED ADDITIONS ON SUNDAY THE THAI OWNER OF THE HOTEL ALONG WITH FIVE OTHER PEOPLE WERE ARRESTED AND CHARGED WITH NEGLIGENCE SEVERAL HUNDRED WERE INSIDE THE HOTEL WHEN IT COLLAPSED IN KORAT 250 MILES NORTHEAST OF BANGKOK ON SUNDAY RESCUE WORKERS WERE STILL WORKING ROUNDTHECLOCK TO FREE AS MANY AS 30 PEOPLE STILL BELIEVED TO BE ALIVE IN THE RUBBLE AND TO RECOVER THE BODIES OF AT LEAST A DOZEN OTHERS THE ACCIDENT CAME JUST THREE MONTHS AFTER A FIRE AT A FACTORY OWNED BY KADER INDUSTRIAL THAILAND CO A THAIHONG KONG COMPANY KILLED 189 WORKERS THAT FIRE HAS BEEN BLAMED ON THE OWNERS' FAILURE TO FOLLOW SAFETY PLANS WHEN THE FACTORY WAS BUILT WHEN THE FIRE BROKE OUT WORKERS FOUND EXITS BLOCKED AND INADEQUATE FIRE ESCAPES SO FAR NO CHARGES HAVE BEEN FILED AGAINST THE OWNERS OF THE KADER FACTORY THE TWO TRAGEDIES GRAPHICALLY UNDERSCORED THE LACK OF ENFORCEMENT OF BUILDING AND SAFETY CODES IN THAILAND PLANS FOR BOTH THE HOTEL AND THE FACTORY MET GOVERMENT SAFETY STANDARDS BEFORE CONSTRUCTION AND OTHER LAWS SHOULD PREVENT OWNERS FROM DEVIATING FROM THOSE APPROVED BUILDING PLANS BUT GOVERNMENT INVESTIGATORS SAY BOTH BUILDINGS APPARENTLY VARIED FROM THE ORIGINAL BLUEPRINTS AS MR CHUAN POINTED OUT ON SUNDAY OFFICIALS ROUTINELY TURN A BLIND EYE TO SUCH VIOLATIONS THAI PEOPLE OFTEN DO NOT RESPECT THE REGULATIONS HE SAID FOREIGN BUILDERS SAY ADDING FLOORS AND CUTTING CORNERS ON SAFETY ARE COMMON IN MANY COUNTRIES IN ASIA BUT THE PROBLEM MAY BE WORSE IN THAILAND BECAUSE OF THE EXPLOSIVE GROWTH OF THE LATE 1980S THE COUNTRY BOASTED DOUBLEDIGIT ECONOMIC GROWTH FROM 198890 MAKING IT THE FASTESTGROWING ECONOMY IN THE WORLD THE BUILDERS SAY THE COUNTRY IS STILL DANGEROUSLY SHORT OF THE EXPERTISE IT NEEDS TO BUILD MODERN MULTISTORY BUILDINGS AND THERE ARE FEWER THAN 100 BUILDING INSPECTORS IN THAILAND WHEN THINGS ARE GROWING THAT FAST AND CONSTRUCTION COMPANIES ARE STRETCHED TOO THIN MISTAKES HAPPEN SAYS A FOREIGN ARCHITECT WORKING IN BANGKOK YODYIAM THEPTHARANON VICE PRESIDENT OF THE ASSOCIATION OF SIAMESE ARCHITECTS MADE PUBLIC A LETTER HE WROTE TO THE BANGKOK PROVINCIAL GOVERNMENT HE WARNED THAT THERE ARE OTHER BUILDINGS THAT MIGHT BE DANGEROUS BECAUSE OF A SHORTAGE OF OFFICIALS TO OVERSEE CONSTRUCTION AND URGED THE GOVERNMENT TO REQUIRE BUILDING INSPECTIONS AT LEAST EVERY FIVE YEARS THE NATION NEWSPAPER PLACED BLAME ON GREED MONGERS AND SAID GOVERNMENT PROMISES FOR NEW REGULATIONS WOULD BE HOLLOW IF ENFORCEMENT WASN'T IMPROVED THEY WILL BE MEANINGLESS HOWEVER IF EXISTING PREVENTATIVE MEASURES ARE NOT FULLY ENFORCED BY GOVERNMENT AUTHORITIES CONCENED THE PAPER SAID IN AN EDITORIAL 9308160142 930816 ELF AQUITAINE'S REVENUE ROSE PARIS FRENCH STATECONTROLLED OIL GROUP SOCIETE NATIONALE ELF AQUITAINE SET TO BE PRIVATIZED LATER THIS YEAR POSTED FIRSTHALF REVENUE OF 10267 BILLION FRENCH FRANCS 17 BILLION UP 39 FROM 9886 BILLION FRANCS A YEAR EARLIER ELF AQUITAINE WHICH PUBLISHED THE REVENUE FIGURES IN A LEGAL NOTICE PROVIDED NO OTHER RESULTS FOR THE FIRST HALF 9308160141 930816 RHONEPOULENC REVENUE DROPS PARIS FRENCH CHEMICALS AND DRUG GROUP RHONEPOULENC SA SAID GROUP CONSOLIDATED REVENUE FOR THE FIRST HALF DECLINED 59 TO 4003 BILLION FRENCH FRANCS 663 BILLION FROM 4256 BILLION FRANCS A YEAR EARLIER THE COMPANY MADE THE ANNOUNCEMENT IN A REQUIRED STANDARD LEGAL FILING ON ITS FINANCES 9308160140 930816 ENTERPRISE FINANCING SMALL BUSINESS SMALL VENTURE FUNDS MAY BRING MORE BENEFITS TO FIRMS BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL SMALL VENTURE FUNDS ARE SUDDENLY BACK IN FAVOR SMALLER VENTURECAPITAL FUNDS HAVE BEGUN TO ATTRACT NEW CAPITAL AGAIN AND SMALLER COMPANIES STAND TO BENEFIT THE REBOUND COMES AFTER A LONG PERIOD WHEN ONLY BIG VENTURE FUNDS GENERALLY WON ATTENTION FROM INSTITUTIONAL INVESTORS SINCE THE START OF 1993 SMALL VENTURE FUNDS HAVE ATTRACTED ABOUT 400 MILLION IN CAPITAL A MUCH LARGER SUM THAN IN RECENT YEARS ESTIMATES PRIVATE EQUITY ANALYST A WELLESLEY MASS NEWSLETTER THESE FUNDS INCLUDE HUMMER WINBLAD VENTURE PARTNERS AN EMERYVILLE CALIF FUND THAT SPECIALIZES IN COMPUTER SOFTWARE BOSTON'S AMPERSAND VENTURES WHICH FOCUSES ON MATERIALS AND CHEMICALS CROSSPOINT VENTURE PARTNERS A LOS ALTOS CALIF SEED FUND AND DELPHI BIOVENTURES A MENLO PARK CALIF BIOTECHNOLOGY FUND THE POPULARITY OF SMALLER FUNDS COMES AT A TIME WHEN MEGAFUNDS AREN'T OUT THERE SOAKING UP INSTITUTIONAL DOLLARS SAYS STEVEN GALANTE THE NEWSLETTER'S EDITOR INSTITUTIONAL INVESTORS ALSO NOW RECOGNIZE THAT THEY PREVIOUSLY HAD IGNORED SMALLER FOCUSED FUNDS MR GALANTE SAYS MOST SMALL FUNDS RECEIVING NEW CAPITAL HAVE A WELLFOCUSED INVESTMENT STRATEGY NOTES RICHARD CHARPIE MANAGING PARTNER OF AMPERSAND AND SMALLER FUNDS USUALLY HAVE BEEN MORE WILLING THAN BIGGER RIVALS TO INVEST IN SMALL EARLIERSTAGE COMPANIES MR CHARPIE SAYS THE REVIVED FUNDING OF SMALLER VENTURE FUNDS COULD SIGNAL AN EASING OF THE LONG SHORTAGE OF FINANCING FOR STARTUP COMPANIES EXPERTS SAY A NEW CLINTON PROGRAM WON'T GIVE MUCH AID TO SMALL BUSINESS LAST MONTH PRESIDENT CLINTON ANNOUNCED PLANS TO ESTABLISH A 382 MILLION FUND TO EXPAND COMMUNITYDEVELOPMENT FINANCIAL INSTITUTIONS WHICH LEND IN POORER AREAS CONGRESS IS EXPECTED TO PASS HIS PROPOSAL BUT CONTRARY TO EXPECTATIONS LESS THAN 130 MILLION WILL DIRECTLY AID SMALL BUSINESSES INDUSTRY SPECIALISTS NOTE ONE REASON IS THAT MUCH OF THE MONEY INITIALLY WILL BE USED FOR CONSUMER LOANS AND HOME MORTGAGES SAYS JULIA PARZEN A COMMUNITYDEVELOPMENT BANKING EXPERT AND PROGRAM OFFICER AT THE JOYCE FOUNDATION CHICAGO HISTORICALLY COMMUNITYDEVELOPMENT BANKS HAVE NEVER GIVEN SMALL BUSINESSES MORE THAN A THIRD OF THEIR LOANS SHE SAYS PRESIDENT CLINTON'S INITIATIVE IS A LITTLE PROGRAM MS PARZEN SAYS IT ISN'T THE COMPLETE ANSWER TO SMALLBUSINESS DEVELOPMENT NEEDS NONETHELESS THE FEDERAL MONEY COULD INDIRECTLY WIDEN LENDING TO SMALL BUSINESSES IT SHOULD ALLOW COMMUNITY FINANCIAL INSTITUTIONS TO EXPAND AND DIVERSIFY THEIR OPERATIONS SAYS JEREMY NOWAK EXECUTIVE DIRECTOR OF THE NONPROFIT DELAWARE VALLEY COMMUNITY REINVESTMENT FUND PHILADELPHIA DELAWARE VALLEY FOR EXAMPLE HOPES TO USE SOME OF THE FEDERAL MONEY TO SET UP AN AFFILIATED BUSINESS DEVELOPMENT PROGRAM WHICH THEN MAY ATTRACT ADDITIONAL INVESTORS MR NOWAK SAYS THE ENERGY DEPARTMENT OFFERS SMALL BUSINESSES AN EXTRA HAND THE FEDERAL AGENCY IS SETTING ASIDE 8 MILLION THIS FISCAL YEAR TO HELP SMALL COMPANIES SOLVE THEIR TECHNICAL PROBLEMS THE EFFORT CALLED THE SMALL BUSINESS INITIATIVE WILL BE RUN THROUGH FOUR FEDERAL LABORATORIES AROUND THE US EACH LAB WILL BE ABLE TO GIVE A SMALL BUSINESS BETWEEN 5000 AND 50000 OF TECHNICAL KNOWHOW WE WANTED TO DEVELOP A MECHANISM BY WHICH WE COULD ASSURE AND SIMPLIFY SMALL BUSINESS'S UTILIZATION OF THE TECHNOLOGY THESE LABORATORIES HAVE SAYS MICHAEL SNOW AN ENERGY DEPARTMENT OFFICIAL ABOUT 30 OF THE AGENCY'S COLLABORATIVE EFFORTS ALREADY INVOLVE SMALL BUSINESSES UNDER THE PROGRAM THE LABORATORIES PROVIDE SMALL BUSINESS WITH SCIENTISTS AND TECHNICIANS AS WELL AS FACILITIES AND NEWLY DEVELOPED TECHNOLOGIES A SMALL BUSINESS CAN ASK ANY PARTICIPATING LABORATORY FOR TECHNICAL ASSISTANCE IN AREAS SUCH AS TESTING OF NEW PRODUCTS OR PROCESSES OR LEARNING TO USE NEW TECHNOLOGY SMALL BUSINESSES ALSO CAN ASK FOR MORE EXTENSIVE HELP SUCH AS COLLABORATION IN INITIAL PRODUCT DESIGN AND DEVELOPMENT BUT TO GET THIS BROADER AID VALUED AT AS MUCH AS 50000 A SMALL COMPANY MUST MATCH THE LABORATORY'S CONTRIBUTION BY SUPPORTING ITS OWN EMPLOYEES INVOLVED COMPRESSION LABORATORIES INC A SMALL HIGHTECHNOLOGY COMPANY IN SAN JOSE CALIF IS WORKING WITH LAWRENCE LIVERMORE NATIONAL LABORATORY TO EXTEND THE USE OF ITS VIDEOCONFERENCING SYSTEM THE COMPANY IS TESTING ITS VIDEOCONFERENCING PRODUCT ON LAWRENCE LIVERMORE'S TELEPHONE AND COMPUTER NETWORKS A SIMILAR TEST IN A COMMERCIAL ENVIRONMENT WOULD HAVE COST THE COMPANY SIGNIFICANTLY MORE A LAWRENCE LIVERMORE SPOKESMAN SAYS SMALL BUSINESSES GAIN FROM PENSION FUNDS' BIGGER LOCAL PUSH MORE PUBLIC PENSION FUNDS ALLOT MONEY FOR SOCALLED ECONOMICALLY TARGETED INVESTMENTS AIMED AT LOCAL COMMUNITIES SAYS A SURVEY BY THE INSTITUTE FOR FIDUCIARY EDUCATION A RESEARCH CONCERN IN SACRAMENTO CALIF ABOUT 700 MILLION OF THE 198 BILLION OF ECONOMICALLY TARGETED INVESTMENTS IN RECENT YEARS HAS GONE TO LOCAL SMALL BUSINESSES AS VENTURE CAPITAL OR LOANS THE SURVEY REPORTS THOUGH THE AMOUNT IS RELATIVELY SMALL IT MAKES A DIFFERENCE SAYS ROBERT FRIEDMAN CHAIRMAN OF THE CORPORATION FOR ENTERPRISE DEVELOPMENT A THINK TANK IN WASHINGTON SMALL BUSINESSES OFTEN HAVE DIFFICULTY ATTRACTING EQUITY CAPITAL OR BANK FINANCING HE NOTES THERE NOW ARE 95 SOCALLED ETI PROGRAMS UP FROM 78 IN 1989 THE RESEARCH CONCERN SAYS THE AMOUNT MANAGED BY THE PROGRAMS HAS MORE THAN DOUBLED SINCE 1989 THE EXPANSION REFLECTS THE INCREASED PRESSURE ON PENSION FUNDS TO ALLOCATE MORE CAPITAL TO THEIR LOCAL ECONOMY SAYS MARILYN WOODS PRESIDENT OF THE RESEARCH CONCERN THE CLINTON ADMINISTRATION ALSO HAS BEEN PUSHING PENSION FUNDS TO GET MORE INVOLVED IN THEIR COMMUNITIES BUT A NUMBER OF SURVEYED PENSION FUNDS REMAIN WARY OF ETI INVESTMENTS VIEWING THEM AS MORE SOCIAL THAN ECONOMICALLY SOUND 9308160139 930816 UNC INC REDEEMS DEBENTURES ANNAPOLIS MD UNC INC SAID IT BEGAN REDEMPTION OF ALL 24 MILLION PRINCIPAL AMOUNT OF ITS 11 1/2 SENIOR SUBORDINATED DEBENTURES DUE 1996 AT 100 PLUS ACCRUED INTEREST TO THE SEPT 7 REDEMPTION DATE UNC MANUFACTURES AND REMANUFACTURES JET ENGINE AND AIRCRAFT COMPONENTS AMONG OTHER AEROSPACERELATED BUSINESSES 9308160138 930816 MICHELIN'S REVENUE FALLS 12 PARIS CIE GENERALE DES ETS MICHELIN THE FRENCH TIRE MAKER RECORDED A 12 FALL IN CONSOLIDATED REVENUE IN THE FIRST HALF 3062 BILLION FRANCS 507 BILLION FROM 3480 BILLION FRANCS THE YEAR BEFORE THE FIGURES CONTAINED IN A ROUTINE FILING IN THE GOVERNMENT'S BULLETIN OF MANDATORY LEGAL ANNOUNCEMENTS DIDN'T CONTAIN SUPPLEMENTARY INFORMATION 9308160137 930816 TECHNOLOGY CADUS'S DRUG DEVELOPMENT NEW YORK CADUS PHARMACEUTICAL CORP SAID IT SECURED 8 MILLION IN FINANCING TO DEVELOP DRUGS TO TREAT INFLAMMATORY CARDIOVASCULAR AND NEUROPSYCHIATRIC DISORDERS LEAD INVESTORS INCLUDE CARL ICAHN'S ICAHN HOLDING CORP AND GLOBAL HEALTH SCIENCES FUND WHICH IS MANAGED BY INVESCO TRUST CO CADUS WAS FOUNDED IN 1992 BY IMCLONE SYSTEMS INC NEW YORK AND BY SCIENTISTS FROM PRINCETON UNIVERSITY AND THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL 9308160136 930816 INTERNATIONAL VENEZUELAN EXPORT EARNINGS CARACAS VENEZUELA EARNINGS FROM EXPORTS OTHER THAN OIL AND IRON ORE IN THE FIRST SEVEN MONTHS OF THIS YEAR WERE 24 HIGHER THAN IN THE SAME PERIOD LAST YEAR THE STATE NEWS AGENCY VENPRES REPORTED FRIDAY SOCALLED NONTRADITIONAL EXPORTS BROUGHT IN 18 BILLION MORE THAN IN THE FIRST SEVEN MONTHS OF 1992 VENPRES REPORTED JULY EXPORT EARNINGS WERE 299 MILLION UP 15 FROM EARNINGS LAST JULY VENPRES SAID MAJOR NONTRADITIONAL EXPORTS INCLUDE ALUMINUM CEMENT AND MELONS 9308160135 930816 WHO'S NEWS V BAND CORP V BAND CORP ELMSFORD NY THOMAS E FEIL 51 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF THIS SWITCHING SYSTEMS AND VOICE AND DATA COMMUNICATIONS CONCERN MR FEIL V BAND'S FOUNDER AND CHAIRMAN SUCCEEDS JAMES J BOYCE 54 WHO RESIGNED FOR PERSONAL REASONS INCLUDING FAMILY HEALTH CONCERNS 9308160134 930816 USLICO REPORTS GAIN ON SALE ARLINGTON VA USLICO CORP SAID IT REALIZED AN AFTERTAX GAIN OF ABOUT 109 MILLION FROM THE SALE OF ITS SHIP REGISTRY AND MARITIME SERVICES BUSINESS AND THE OFFSHORE CORPORATE FORMATION AND REGISTRY BUSINESS TO MANAGEMENT OF THOSE COMPANIES THE INSURANCE COMPANY SAID THE SALE FOLLOWS ITS STRATEGY OF NARROWING ITS FOCUS ON THE LIFE INSURANCE AND ANNUITIES BUSINESS THE GAIN INCLUDES 19 MILLION OF NET PROCEEDS AND 9 MILLION OF PREVIOUSLY UNRECOGNIZED TAX BENEFITS 9308160133 930816 INTERNATIONAL WAGES RISE IN WESTERN GERMANY FRANKFURT WESTERN GERMANY'S HOURLY WAGE INDEX FOR INDUSTRIAL WORKERS WAS 58 HIGHER IN APRIL THAN THE SAME MONTH A YEAR EARLIER THE FEDERAL STATISTICS OFFICE REPORTED FRIDAY THE INDEX INCLUDES PRODUCTION TRANSPORTATION TRADE AND COMMUNICATIONS WORKERS IN APRIL THE INDEX STOOD AT 1450 WITH 1985 AS THE BASELINE THE OFFICE REPORTED HOURLY WAGES PAID TO FEMALE WORKERS WERE UP 62 IN APRIL COMPARED WITH APRIL 1992 THE OFFICE REPORTED WHILE MALE WORKERS SAW THEIR HOURLY WAGES INCREASE 57 WEEKLY WAGE INDEX FOR INDUSTRIAL WORKERS WAS UP 46 IN APRIL COMPARED WITH APRIL 1992 THE OFFICE SAID NOTING THAT FEMALE WORKERS' WAGES ROSE 47 THOSE OF MALE WORKERS WERE UP 45 WHITECOLLAR WORKERS MEANWHILE WERE MAKING 52 MORE A MONTH IN APRIL THAN THE SAME MONTH A YEAR EARLIER THE STATISTICS OFFICE SAID WAGES OF FEMALE WORKERS ROSE 58 DURING THE PERIOD AND THOSE FOR MEN INCREASED 48 THE REPORT SAID THEIR AVERAGE WORK WEEK WAS 37 HOURS 44 MINUTES ABOUT 20 MINUTES SHORTER THAN IN APRIL 1992 9308160132 930816 WHO'S NEWS ACKERLEY COMMUNICATIONS INC ACKERLEY COMMUNICATIONS INC SEATTLE WILLIAM N ACKERLEY WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS DISPLAY ADVERTISING COMPANY MR ACKERLEY 33 YEARS OLD IS THE SON OF THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER BARRY ACKERLEY THE POSITION OF PRESIDENT HAS BEEN VACANT FOR TWO YEARS AND THE OTHER POST IS NEWLY CREATED 9308160131 930816 BUSINESS BRIEF LAFARGECOPPEE SA FIRSTHALF REVENUE DECLINED 52 FROM THE YEAR BEFORE LAFARGECOPPEE SA THE FRENCH CEMENT GROUP RECORDED A 52 FALL IN CONSOLIDATED REVENUE IN THE FIRST HALF TO 1428 BILLION FRANCS 237 BILLION FROM 1506 BILLION FRANCS A YEAR EARLIER THE FIGURES CONTAINED IN A ROUTINE FILING IN THE GOVERNMENT'S BULLETIN OF MANDATORY LEGAL ANNOUNCEMENTS IN PARIS DIDN'T CONTAIN SUPPLEMENTARY INFORMATION 9308160130 930816 DIVIDEND NEWS NUCOR CORP NUCOR CORP CHARLOTTE NC CITING A FAVORABLE LONGTERM BUSINESS OUTLOOK ANNOUNCED A 2FOR1 STOCK SPLIT PAYABLE SEPT 17 TO SHARES OF RECORD AUG 25 THE STEELMAKER SAID THE SPLIT WILL BROADEN INTEREST IN ITS COMMON STOCK AND IMPROVE ITS MARKETABILITY NUCOR ALSO DECLARED A QUARTERLY DIVIDEND OF FOUR CENTS A SHARE PAYABLE NOV 11 TO STOCK OF RECORD SEPT 30 THE AMOUNT REFLECTS THE STOCK SPLIT 9308160129 930816 INTERNATIONAL NORWAY'S TRADE SURPLUS RISES STOCKHOLM NORWAY'S TRADE SURPLUS ROSE 16 TO 522 BILLION KRONER 6979 MILLION FROM 451 BILLION KRONER IN JULY LARGELY DUE TO A 19 JUMP IN CRUDE OIL EXPORTS THE NATIONAL STATISTICS AGENCY SAID 9308160128 930816 FINANCING BUSINESS MEDIMMUNE INC MEDIMMUNE INC GAITHERSBURG MD SAID IT PRIVATELY PLACED 21 MILLION OF NEWLY ISSUED COMMON STOCK OR 1120000 COMMON SHARES WITH INSTITUTIONAL INVESTORS THE THERAPEUTICS AND VACCINES COMPANY WHICH HAD ABOUT 166 MILLION SHARES OUTSTANDING AT JUNE 30 WILL USE THE PROCEEDS FOR OPERATING EXPENSES NEW PRODUCT MARKETING COSTS MANUFACTURING AND RESEARCH EXPENSES 9308160127 930816 INTERNATIONAL EURO DISNEY REVENUE FALLS PARIS EURO DISNEY SCA POSTED A 24 DROP IN REVENUE FOR THE FISCAL THIRD QUARTER ENDED JUNE 30 TO 147 BILLION FRENCH FRANCS 244 MILLION FROM 15 BILLION FRANCS A YEAR EARLIER THE COMPANY OPERATOR OF THE EURO DISNEY RESORT OUTSIDE PARIS REPORTED LAST MONTH THAT THE LOSS FOR THE THIRD QUARTER WAS 500 MILLION FRENCH FRANCS 83 MILLION WHICH WAS LARGER THAN EXPECTED EURO DISNEY AND ITS 49OWNER WALT DISNEY CO BURBANK CALIF HAVE SAID THEY ARE CONDUCTING A STRATEGIC REEXAMINATION OF THE RESORT'S FINANCIAL STRUCTURE AND ITS FUTURE DEVELOPMENT IN VIEW OF THE RECENT FINANCIAL PERFORMANCE 9308160126 930816 MACHINES BULL'S REVENUE FALLS PARIS FRENCH STATECONTROLLED COMPUTER GROUP CIE DES MACHINES BULL SA REPORTED GROUP CONSOLIDATED REVENUE FELL 94 FOR THE FIRST HALF OF 1993 TO 1248 BILLION FRENCH FRANCS 207 BILLION FROM 1377 BILLION FRANCS A YEAR EARLIER THE COMPANY MADE THE ANNOUNCEMENT IN A REQUIRED STANDARD LEGAL FILING ON ITS FINANCES 9308160125 930816 AIR METHODS RESTRUCTURES DEBT DENVER AIR METHODS CORP SAID IT WAS USING WORKING CAPITAL TO PAY OFF MORE THAN 3 MILLION OF LONGTERM DEBT AS THE FIRST STEP IN A BROADER RESTRUCTURING OF DEBT THE PROVIDER OF AEROMEDICAL SERVICES AND SYSTEMS SAID THAT WITHIN 90 DAYS IT HOPES TO RESTRUCTURE A TOTAL OF 15 MILLION IN LONGTERM DEBT AND ABOUT 15 MILLION IN CAPITALLEASE OBLIGATIONS AND OPERATING LEASES THE COMPANY SAID THE RESTRUCTURING SHOULD RESULT IN SIGNIFICANT INTEREST EXPENSE SAVINGS BUT DECLINED TO PROVIDE AN ESTIMATE 9308160124 930816 FINANCING BUSINESS CHILMARK CAPITAL CORP CHILMARK CAPITAL CORP NEW YORK SAID IN A SECURITIES AND EXCHANGE COMMISSION FILING THAT IT SOLD ITS 56 STAKE IN GIBSON GREETINGS INC A CINCINNATI GREETINGCARD MAKER CHILMARK SAID IT SOLD 864000 COMMON SHARES OF GIBSON BETWEEN JUNE 22 AND AUG 4 AT PRICES RANGING FROM 1794 TO 1938 A SHARE NEITHER COMPANY COULD BE REACHED FOR COMMENT 9308160123 930816 INTERNATIONAL POLISH JOBLESS RATE CLIMBS FRANKFURT POLAND'S UNEMPLOYMENT RATE INCREASED TO 152 OF THE WORK FORCE IN JULY THE NEWS AGENCY PAP REPORTED THAT WAS UP FROM 146 IN JUNE THE NUMBER OF UNEMPLOYED WORKERS INCREASED TO 28 MILLION IN JULY FROM 27 MILLION IN JUNE 9308160122 930816 INTERNATIONAL BRITISH UNIT LABOR COSTS LONDON UNITED KINGDOM UNIT LABOR COSTS OR WAGES AND SALARIES PER UNIT OF OUTPUT IN MANUFACTURING INDUSTRY ROSE 21 IN JUNE FROM MAY BUT WERE DOWN 2 FROM A YEAR EARLIER ACCORDING TO SEASONALLY ADJUSTED DATA PUBLISHED BY THE DEPARTMENT OF EMPLOYMENT FOR THE THREE MONTHS ENDED JUNE 30 THE INDEX OF UNIT LABOR COSTS DROPPED 05 FROM THE PREVIOUS THREEMONTH PERIOD AND FELL 3 FROM A YEAR EARLIER PRODUCTIVITY IN MANUFACTURING MEASURED AS OUTPUT PER HEAD FELL 24 IN JUNE FROM MAY BUT WAS UP 68 FROM A YEAR EARLIER FOR THE THREE MONTHS ENDED IN JUNE THE INDEX OF PRODUCTIVITY WAS UNCHANGED FROM THE PREVIOUS THREE MONTHS BUT WAS UP 82 FROM A YEAR EARLIER 9308160121 930816 INTERNATIONAL POLAND FORECASTS BUDGET DEFICIT FRANKFURT POLAND EXPECTS ITS BUDGET DEFICIT FOR 1994 WILL REACH 87 TRILLION ZLOTYS 5 BILLION OR 45 OF GROSS DOMESTIC PRODUCT THE POLISH NEWS AGENCY PAP SAID DEPUTY FINANCE MINISTER WOJCIECH MISIAG SAID BUDGET RECEIPTS ARE FORECAST AT 567 TRILLION ZLOTYS AND EXPENDITURES AT 654 TRILLION ZLOTYS MR MISIAG SPOKE AT A NEWS CONFERENCE IN WARSAW ON THE IMPLEMENTATION OF THE 1993 BUDGET AND ASSUMPTIONS FOR THE 1994 BUDGET ACCORDING TO PAP HE SAID THERE HAS BEEN NO DECISION ON THE MEANS FOR FINANCING THE EXPECTED DEFICIT 9308160120 930816 INTERNATIONAL BRITISH CAR REGISTRATIONS RISE LONDON NEW CAR REGISTRATIONS IN BRITAIN WERE UP 12 IN THE FIRST TEN DAYS OF AUGUST FROM A YEAR EARLIER ACCORDING TO INDUSTRY DATA THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS SAID SALES OF PASSENGER VEHICLES AS MEASURED BY NEW CAR REGISTRATIONS WERE 249153 IN THE PERIOD COMPARED WITH 223283 A YEAR EARLIER AUGUST IS USUALLY A KEY MONTH FOR UK CAR SALES WHEN BUYERS ARE ATTRACTED BY THE START OF THE NEW MODEL YEAR 9308160119 930816 POLISH CONSUMER PRICES FRANKFURT CONSUMER PRICES IN POLAND ROSE 18 IN JULY BOOSTED BY THE INTRODUCTION OF A VALUEADDED TAX VAT THE POLISH NEWS AGENCY PAP REPORTED DEPUTY FINANCE MINISTER WITOLD MODZELEWSKI SAID THAT ACCORDING TO INITIAL ESTIMATES THE INTRODUCTION OF THE VAT ON JULY 5 ACCOUNTED FOR 17 PERCENTAGE POINTS OF THE RISE MR MODZELEWSKI SAID THE DEFERRED EFFECTS OF THE VAT WILL STILL BE FELT IN AUGUST THE MINISTRY ESTIMATES THAT VAT WILL BE RESPONSIBLE FOR ANOTHER 1 PERCENTAGE POINT PRICE RISE CONSUMER PRICES ROSE 14 IN JUNE OVER MAY AND WERE UP 343 OVER JUNE 1992 PAP DIDN'T PROVIDE A FIGURE FOR CONSUMER PRICE INFLATION OVER JULY 1992 9308160118 930816 TECHNOLOGY SCICLONE WARRANT REDEMPTION SAN MATEO CALIF SCICLONE PHARMACEUTICALS INC SAID NET PROCEEDS FROM A RECENTLY COMPLETED WARRANT REDEMPTION TOTALED 38 MILLION THE BIOTECHNOLOGY FIRM SAID THE FUNDS WILL BE USED FOR GENERAL CORPORATE PURPOSES 9308160117 930816 FINANCING BUSINESS PLACER DOME INC PLACER DOME INC VANCOUVER BRITISH COLUMBIA SAID IT PLANS TO PURCHASE 10 MILLION CANADIAN DOLLARS US76 MILLION OF SPECIAL WARRANTS TO BE ISSUED BY GIBRALTAR MINES LTD AS PART OF A C50 MILLION ISSUE BY GIBRALTAR PLACER A GOLD PRODUCER CURRENTLY OWNS ABOUT 68 OF THE COMMON SHARES OF GIBRALTAR A VANCOUVER COPPER PRODUCER PLACER SAID ITS STAKE IN GIBRALTAR WOULD FALL TO ABOUT 44 IF ALL THE WARRANTS ARE CONVERTED INTO GIBRALTAR COMMON SHARES 9308160116 930816 TREASURY PLANS BILL SALE WASHINGTON THE TREASURY PLANS TO RAISE 625 MILLION IN NEW CASH WITH THE SALE THURSDAY OF ABOUT 1525 BILLION OF 52WEEK BILLS TO REDEEM 1462 BILLION IN MATURING BILLS THE CUSIP NUMBER FOR THE BILLS IS 912794L69 THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS WILL BE DATED AUG 26 AND WILL MATURE AUG 25 1994 NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EDT THURSDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM THAT DAY 9308160115 930816 HONG KONG'S FERVOR FOR INVESTMENTS IN CHINA GROWS MUTED AS TROUBLE BREWS BY JESSE WONG STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG AS A PROUD PIONEER AMONG INVESTORS IN CHINA KUMAGAI GUMI HONG KONG LTD HANDS OUT BROCHURES THAT SHOW ITS CHAIRMAN RUBBING SHOULDERS WITH THE COUNTRY'S POLITICAL BIGWIGS ITS LATEST ANNUAL REPORT FEATURES A CHINA PROJECT ON THE COVER YOU MIGHT THINK THEN THAT THE CONSTRUCTION COMPANY IS HAPPY TO BE RANKED AS THIS COLONY'S BIGGEST INVESTOR IN CHINA NO NO NO NO PROTESTS FREDERICK MA WHEN SHOWN STOCKMARKET RESEARCH THAT DOES JUST THAT NOTING THAT THE REPORT OVERSTATES HIS COMPANY'S CHINA EXPOSURE THE KUMAGAI EXECUTIVE DIRECTOR POINTS AT THE SIXTH OR SEVENTH SPOT IN THE RANKINGS WE BELONG DOWN HERE NOT UP THERE BEING OR APPEARING TO BE A BIG SPENDER IN CHINA DOESN'T SEEM AS MUCH IN FASHION AMONG HONG KONG INVESTORS AS IT DID ONLY AWHILE AGO AT THE HEIGHT OF THE SOCALLED CHINA MANIA THAT BEGAN IN EARLY 1992 HARDLY A DAY WENT BY WITHOUT A HONG KONG COMPANY TRUMPETING A HUGE NEW INVESTMENT NOW ENTHUSIASM FOR SUCH DEALS IS MORE MUTED AS TROUBLE BREWS IN CHINA IN THE FORM OF EXCHANGERATE VOLATILITY SOARING INFLATION AND GOVERNMENTIMPOSED AUSTERITY NOT THAT ANY BIGLEAGUE HONG KONG INVESTOR HAS SOURED OPENLY ON CHINA GIVEN THE COLONY'S 1997 RETURN TO CHINESE RULE DOING SO WOULD BE BAD POLITICS IN ANY CASE BECAUSE CHINA BEGAN TO TACKLE ITS ECONOMIC TROUBLES ONLY A MONTH AGO INVESTORS AREN'T LEAPING TO CONCLUSIONS AND ARE KEEPING THEIR OPTIONS OPEN THAT PERHAPS IS WHY MANY OF THEM SEEM HAPPY NOWADAYS EMPHASIZING HOW TENTATIVE RATHER THAN HOW BIG THEIR CHINA INVESTMENTS ARE THERE ARE HINTS TOO ABOUT AXING THE IFFIER PROJECTS AND STRETCHING OUT SOME OTHERS FOR NOW AT LEAST BEING BIG IN CHINA HAS COME TO BE SEEN AS A DUBIOUS HONOR THAT FEW INVESTORS WISH TO CLAIM CERTAINLY NOT WHARF HOLDINGS LTD WHOSE VISION IS TO REMOLD THE HEARTLAND CITY OF WUHAN INTO A CARGOHANDLING HUB ESTIMATES OF WHARF'S POTENTIAL CHINA INVESTMENTS RANGE AS HIGH AS 12 BILLION HONG KONG DOLLARS US155 BILLION ITS INVESTMENT SO FAR IS MORE LIKE HK500 MILLION JOHN HUNG THE SENIOR EXECUTIVE MOST VOCAL IN PREACHING WHARF'S WUHAN VISION SAYS THAT SUCH A MEASURED PACE IS JUST ABOUT RIGHT OBVIOUSLY CHINA WOULD LIKE PEOPLE TO INVEST FAST HE SAYS BUT WE'RE IN NO HURRY NOR IT SEEMS IS HUTCHISON WHAMPOA LTD WHICH HAS BEEN JOSTLING WITH WHARF FOR CHOICE CHINA PROJECTS HUTCHISON'S PLANS INCLUDE A TENTATIVE HK6 BILLION INVESTMENT IN THE PORT OF SHANGHAI SO FAR HK1 BILLION HAS BEEN SPENT TO BUY A 50 STAKE IN EXISTING FACILITIES THE REST IS WHAT MIGHT BE INVESTED IF MORE CONTAINER TERMINALS ARE BUILT A VERY BIG IF WITH EUROPEAN AND US INVESTORS STILL IN PURSUIT OF CHINA OPPORTUNITIES THE COOLING IN ATTITUDES SEEMS CONFINED FOR NOW MOSTLY TO HONG KONG INVESTORS ELSEWHERE HOWEVER MIGHT WANT TO TAKE HEED PROXIMITY TO CHINA MAKES THE COLONY'S BUSINESS PEOPLE ULTRASENSITIVE TO POLICY SHIFTS WITHIN THE CHINESE GOVERNMENT HONG KONG BUSINESS PEOPLE WERE THE FIRST TO REACT LAST YEAR WHEN CHINA OPENED THE FLOODGATES TO FOREIGN INVESTMENT ANALYSTS AT CREDIT LYONNAIS SECURITIES ASIA LTD FIGURE HONG KONGLISTED COMPANIES HAVE MORE THAN 800 CHINA PROJECTS IN THE PIPELINE ALL BUT A HANDFUL WERE CONCEIVED IN THE 15 MONTHS OR SO AFTER JANUARY 1992 WHEN CHINA'S TOP LEADER DENG XIAOPING SIGNALED AN END TO SEVERAL YEARS OF RETRENCHMENT AND REAFFIRMED THE COMMITMENT TO ECONOMIC REFORM THE STUDY ATTRIBUTES A 31 SHARE OF THE PROJECTS' TOTAL COST TO THE HONG KONG COMPANIES INVOLVED THE REST PRESUMABLY WOULD COME FROM CHINESE PARTNERS THAT 31 ISN'T PEANUTS AT HK183 BILLION IT IS TWICE THE INVESTMENT THAT CHINA SAYS IT GOT IN 1992 FROM THE REST OF THE WORLD INCLUDING HONG KONG THE BIG QUESTION NOW IS HOW MUCH OF THE AMOUNT PROMISED BY THE COLONY WILL COME THROUGH EVEN UNDER IDEAL CIRCUMSTANCES ACTUAL INVESTMENT SELDOM MEASURES UP TO PROMISES AND CIRCUMSTANCES AT THE MOMENT SEEM LESS THAN IDEAL THE TIGHTMONEY POLICY IMPOSED BY VICE PREMIER ZHU RONGJI CHINA'S CHIEF INFLATION FIGHTER AND NEW CENTRAL BANK GOVERNOR MAY BE NECESSARY MEDICINE BUT NO ONE CAN RULE OUT DRASTIC ECONOMIC OR POLITICAL SIDEEFFECTS MEANWHILE RUMORS SWIRL OVER THE HEALTH OF MR DENG WHO SOON WILL TURN 89 BUT HAS YET TO ESTABLISH ANY CLEAR LINE OF SUCCESSION ALL THIS CREATES HUGE QUESTION MARKS IN THE MINDS OF INVESTORS 9308160114 930816 IN POSTCOLD WAR RESTRUCTURING RACE CZECH BANK SIZES UP ITS NEXT HURDLES BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL PRAGUE KOMERCNI BANKA HOLDS A DOMINANT POSITION IN CZECH REPUBLIC'S COMMERCIAL BANKING MARKET IT OWNS A MODERN WESTERNDESIGNED COMPUTER SYSTEM AND RETAINS AN ARMY OF BRANCH MANAGERS EAGER TO DO BUSINESS STILL CHAIRMAN RICHARD SALZMANN ISN'T SATISFIED TECHNOLOGY AND ADDITIONAL BUSINESS ARE IMPORTANT THE BESPECTACLED EXECUTIVE SAYS BUT THEY'RE NOT THE MOST IMPORTANT THING THE MOST IMPORTANT THING IS TO GET RID OF THE BAD LOANS OF THE PAST AND STRENGTHEN OUR CAPITAL THROUGHOUT THE FORMERLY COMMUNIST NATIONS OF EUROPE HIS IS A FREQUENTLY HEARD LAMENT AS BANKS GEAR UP TO MEET THE DEMANDS OF MARKET ECONOMICS THEY LABOR UNDER THE BURDEN OF DECADES OF GOVERNMENTDIRECTED LENDING TO ENTERPRISES NOW DEFUNCT OR ON THE EDGE OF INSOLVENCY STATISTICS AREN'T AVAILABLE BUT OFFICIALS AT THE EUROPEAN BANK FOR RECONSTRUCTION & DEVELOPMENT ESTIMATE THAT SUCH LOANS ACCOUNT FOR ANYWHERE FROM 25 TO 60 OF ALL BANK LENDING IN THE REGION SORTING THE PROBLEM OUT IS ONE OF THE MAIN CHALLENGES FACING EASTERN EUROPE CZECH REPUBLIC IS ONE OF THE COUNTRIES THAT HAS MADE THE MOST ADVANCES CZECHOSLOVAKIA BEFORE IT SPLIT INTO ITS CZECH AND SLOVAK COMPONENTS EARLIER THIS YEAR LED THE WAY IN 1991 WITH THE ESTABLISHMENT OF KONSOLIDACNI BANKA OR CONSOLIDATION BANK CREATED IN PART TO TAKE OVER THE BAD DEBTS OF THE NATION'S NEWLY ESTABLISHED COMMERCIAL BANKS BANKS FORMERLY PART OF THE STATERUN SYSTEM ALSO WERE OFFERED OTHER MECHANISMS TO DEAL WITH BAD LOANS INCLUDING EXCHANGING SOME FOR GOVERNMENT BONDS OR SELLING THEM AT A DISCOUNT TO KONSOLIDACNI KOMERCNI BORN IN 1990 OUT OF A REORGANIZATION OF CZECHOSLOVAKIA'S STATE BANK AS A COMMERCIAL BANK FOR THE CZECH HALF OF THE COUNTRY SLIMMED DOWN ITS BALANCE SHEET BY MORE THAN ONETHIRD BUT THE PROBLEM LINGERS AND FOR BANKS SUCH AS KOMERCNI IT MEANS THE DIFFERENCE BETWEEN FINANCIAL SICKNESS AND HEALTH ACCOUNTING LAWS IN THE CZECH REPUBLIC AND OTHER EASTERN EUROPEAN COUNTRIES ALLOW BANKS TO CARRY LOANS ON BALANCE SHEETS EVEN IF IT'S DOUBTFUL THEY'LL BE REPAID INTERNATIONAL RULES BY CONTRAST OBLIGE BANKS TO SET ASIDE FUNDS FOR LOANLOSS PROVISIONS CARVING A CHUNK FROM EARNINGS IF STRICTLY APPLIED SUCH RULES WOULD PUSH MANY BANKS DEEP INTO THE RED KOMERCNI IS A CASE IN POINT EARLIER THIS YEAR IT PUBLISHED TWO SETS OF ACCOUNTS FOR 1992 ONE BASED ON CZECH RULES AND THE OTHER ON INTERNATIONAL STANDARDS DEPENDING ON THE SET OF BOOKS THE BANK EITHER MADE A NET PROFIT LAST YEAR OF 32 BILLION KORUNAS 1097 MILLION OR HAD A NET LOSS OF 59 BILLION KORUNAS TOTAL ASSETS WERE EITHER 285 BILLION KORUNAS 977 BILLION OR 278 BILLION KORUNAS FOR MR SALZMANN AN EBULLIENT 64YEAROLD WHO SPORTS COLORFUL BOW TIES THIS DOUBLE FACE AS HE DUBS THE DUAL ACCOUNTS IS A MAJOR OBSTACLE TO GROWTH EARLIER THIS YEAR KOMERCNI WAS PARTLY PRIVATIZED BUT THE BANK NEEDS MORE CAPITAL AND MR SALZMANN WOULD LIKE FOREIGN INVESTORS TO PROVIDE IT DOUBTS OVER THE VALUE OF KOMERCNI'S LOAN PORTFOLIO HOWEVER MAKE IT HARD TO ASSESS THE BANK'S VALUE AND PRAGUE'S FLEDGLING STOCK MARKET OF WHICH MR SALZMANN IS CHAIRMAN HASN'T BEEN MUCH HELP SINCE JUNE 22 WHEN THE NEWLY PRIVATIZED BANK'S SHARES WERE FIRST QUOTED ON THE ONCEAWEEK EXCHANGE THEIR PRICE HAS DROPPED FROM 4000 KORUNAS 13708 FOUR TIMES THEIR NOMINAL 1000KORUNA VALUE TO 2220 KORUNAS PRICES ON THE EXCHANGE ARE SET BY A COMPUTER THAT MATCHES BUY AND SELL OFFERS HOWEVER IN ONE RECENT SESSION NO KOMERCNI SHARES WERE TRADED BECAUSE THERE WERE NO MATCHING BIDS BECAUSE OF THE CUMBERSOME NATURE OF THE EXCHANGE'S SYSTEM MOST TRADING IN CZECH SHARES TAKES PLACE OUTSIDE THE OFFICIAL MARKET BUT EVEN THERE ANALYSTS SAY THEY HAVE LITTLE IDEA WHERE KOMERCNI MAY BE HEADING AFTER ITS RECENT DECLINE MR SALZMANN CAN SCARCELY HIDE HIS FRUSTRATION WE GOT 90 TO 92 OF OUR BAD LOANS UNDER CONTROL HE SAYS THE MAIN PROBLEM IS TO COPE WITH THOSE REMAINING BAD LOANS IN THE PROPER TIME AND THE PROPER WAY IF ANYONE IS TO DO THAT MR SALZMANN A FIRMMANNERED VETERAN OF HIS COUNTRY'S BANKING SYSTEM IS PROBABLY ONE OF THE BEST PLACED A FORMER OFFICIAL OF THE CZECHOSLOVAKIAN STATE BANK HE IS WIDELY RECOGNIZED AS ONE OF HIS COUNTRY'S MOST COMPETENT BANKERS AFTER HELPING TO PLAN THE BREAKUP OF CZECHOSLOVAKIA'S MONOLITHIC STATE BANKING SYSTEM WHILE THE COUNTRY WAS STILL OFFICIALLY COMMUNIST HE WAS MADE DEPUTY CHAIRMAN OF KOMERCNI IN 1990 AT THE TIME OF ITS CREATION HE TOOK OVER THE CHAIRMANSHIP 15 MONTHS LATER UNDER HIS GUIDANCE THE BANK EMBARKED ON A THREEBILLIONKORUNA OVERHAUL OF ITS COMPUTER AND ACCOUNTING SYSTEMS THAT IS NOW CLOSE TO COMPLETION IT BOUGHT AN IBM MAINFRAME AND WESTERNDESIGNED BANKING SOFTWARE IT EXPANDED ITS BRANCH NETWORK TO 450 OUTLETS FROM 83 AND ITS WORK FORCE TO 16500 FROM 7500 IT INSTALLED AUTOMATED TELLER MACHINES AND HOOKED THEM UP TO THE WORLDWIDE EUROPAYMASTERCARD NETWORK FROM A STARTING CUSTOMER BASE OF 10000 STATEOWNED COMPANIES IT BUILT UP ITS BUSINESS TO THE POINT WHERE IT NOW HAS A DIVERSIFIED CUSTOMER LIST OF ONE MILLION CLIENTS AGAINST THIS BACKGROUND AN ADDITIONAL PROBLEM FOR KOMERCNI PARADOXICALLY HAS BEEN ITS SIZE ANTITRUST LAWS DESIGNED TO ENHANCE COMPETITION HAVE SET STRICT LIMITS ON KOMERCNI'S AMBITION BY LAW SAYS MR SALZMANN OUR BANK IS NOT ALLOWED TO HAVE MORE THAN 30 OF THE LOAN MARKET WE ALREADY HAVE THAT MUCH SO WE HAVE TO WAIT UNTIL THE WHOLE VOLUME OF CREDITS INCREASES BEFORE OUR SHARE CAN INCREASE FOR KOMERCNI BRANCH MANAGERS THAT FACT IS A MAJOR HINDRANCE AMID A CAPITALIST BOOM THEY MUST SIT ON THEIR HANDS WHILE COMPETITORS TAKE ON BUSINESS WHAT'S MORE THEY HAVE HAD TO ADAPT TO A STRICT NEW CREDITAPPROVAL PROCESS INTRODUCED BY MR SALZMANN TO IMPROVE THE QUALITY OF THE BANK'S LOAN BOOK FOR BANKERS WHO THOUGHT MARKET LIBERALIZATION WOULD BESTOW GREATER POWER TO MAKE DECISIONS SUCH RESTRICTIONS ARE SOMETIMES SEEN AS A SLAP IN THE FACE BUT AT STAKE ARE THE BANK'S FUTURE CAPITALADEQUACY RATIOS THE BASIC SEALS OF FINANCIAL STRENGTH NEEDED TO SUPPORT LENDING FOR THE MOMENT WITH CAPITAL OF AROUND FIVE BILLION KORUNAS AND A RISKASSET RATIO AT THE START OF THIS YEAR OF 5 KOMERCNI BANKA IS WELL SHORT IF THE INTERNATIONAL NORM 8 UNDER CZECH RULES IT HAS UNTIL THE END OF THE YEAR TO REACH 625 AND UNTIL 1996 TO REACH 8 PART OF THE INCREASE MR SALZMANN SAYS WILL COME FROM INTERNALLY GENERATED PROFIT BUT PART WILL HAVE TO BE FINANCED BY INVESTORS MEANWHILE KOMERCNI HASN'T GIVEN UP ITS AMBITION INSTEAD OF THE LOAN BUSINESS HOWEVER MR SALZMANN SAYS HE IS LOOKING TO AREAS SUCH AS FEEEARNING BUSINESS ON CZECH REPUBLIC'S NASCENT STOCK EXCHANGE AND CAPITAL MARKETS 9308160113 930816 VENEZUELA CLEARS FOREIGN CONCERNS' OIL GAS VENTURES BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL APPROVAL BY THE VENEZUELAN CONGRESS OF THREE HUGE HYDROCARBON PROJECTS HAS OPENED THE DOOR FOR FOREIGN COMPANIES TO PARTICIPATE IN NEW OIL AND GAS VENTURES IN VENEZUELA MAJOR US EUROPEAN AND JAPANESE COMPANIES ARE PARTNERS IN THE PROJECTS WITH SUBSIDIARIES OF PETROLEOS DE VENEZUELA OR PDVSA THIS WILL MARK THE FIRST TIME SINCE THE OIL INDUSTRY WAS NATIONALIZED IN 1976 THAT FOREIGN COMPANIES CAN HOLD DIRECT STAKES IN NEW OIL AND GAS DEVELOPMENT IN THE SOUTH AMERICAN NATION TWO PROJECTS TO BEGIN LARGESCALE DEVELOPMENT OF VENEZUELA'S MASSIVE RESERVES OF HEAVY CRUDE OIL AT COSTS ESTIMATED TO TOTAL MORE THAN 5 BILLION WERE APPROVED BY THE CONGRESS ON FRIDAY THAT FOLLOWED APPROVAL EARLIER IN THE WEEK OF A 56 BILLION VENTURE TO DEVELOP ENORMOUS OFFSHORE GAS RESERVES AND EXPORT THE FUEL TO THE US OR TO EUROPE AS LIQUEFIED NATURAL GAS OR LNG THE HEAVYOIL PROJECTS WILL PRODUCE AND REFINE CRUDES FROM VENEZUELA'S ORINOCO BELT WHICH IS CLAIMED TO HAVE RECOVERABLE OIL RESERVES OF 270 BILLION BARRELS ALTHOUGH THE OIL IS VERY DENSE AND MORE DIFFICULT TO PROCESS THAN CONVENTIONAL CRUDES THE SIZE OF THE DEPOSITS IS COMPARABLE WITH THE PROVED OIL RESERVES OF SAUDI ARABIA THE WORLD'S LARGEST PRODUCER AMONG THE PARTICIPANTS IN THE TWO HEAVYOIL VENTURES IN ADDITION TO MARAVEN A PDVSA SUBSIDIARY ARE THE CONOCO SUBSIDIARY OF DUPONT CO FRANCE'S TOTAL AND JAPANESE COMPANIES INCLUDING ITOCHU CORP AND MARUBENI CORP THE CRISTOBAL COLON LNG PROJECT INVOLVES A PARTNERSHIP OF LAGOVEN ANOTHER PDVSA UNIT AND EXXON CORP THE ROYAL DUTCH/SHELL GROUP AND JAPAN'S MITSUBISHI CORP INDUSTRY SOURCES SAID THERE STILL COULD BE SOME HURDLES FOR THE VENTURES TO OVERCOME IN VIEW OF VENEZUELA'S POLITICAL AND ECONOMIC PROBLEMS ALSO SOME STILL QUESTION THE ECONOMIC FEASIBILITY OF THE PROJECTS PARTICULARLY THE ONE FOR LNG UNLESS THE PRICE OUTLOOK IMPROVES UNDER THEIR AGREEMENT THE CRISTOBAL COLON PARTNERS HAVE UNTIL 1997 TO DECIDE WHETHER MARKET CONDITIONS ARE CONSIDERED TO BE GOOD ENOUGH FOR CONSTRUCTION TO BEGIN NEVERTHELESS ALL THREE PROJECTS HAVE BEEN SEEN AS A LITMUS TEST OF HOW SUCCESSFUL THE MAJOR OIL COMPANIES WOULD BE IN THEIR EFFORTS TO RETURN TO VENEZUELA ALSO PDVSA HAS BEEN BANKING HEAVILY ON CONGRESSIONAL APPROVAL OF THE VENTURES TO PAVE THE WAY FOR FURTHER FOREIGN INVESTMENTS IN ITS AMBITIOUS OIL AND GAS EXPANSION PLANS THE NATIONAL OIL COMPANY ALREADY HAS BEEN ABLE TO GET SOME FOREIGN OIL COMPANIES BACK INTO VENEZUELA'S OIL AREA BY OFFERING THEM RIGHTS TO REDEVELOP OLD APPARENTLY EXHAUSTED FIELDS BECAUSE THESE FIELDS HAVE BEEN ABANDONED FOREIGN COMPANIES DON'T NEED CONGRESSIONAL APPROVAL TO DEVELOP THEM AS A RESULT SOME FOREIGN COMPANIES SUCH AS BRITISH PETROLEUM CO AND THE USBASED BENTON OIL & GAS CO ALREADY HAVE BEGUN WORK IN REACTIVATING ABANDONED VENEZUELAN FIELDS AND PDVSA SUBSIDIARIES ANNOUNCED LAST WEEK THAT A SECOND AUCTION ROUND OF MARGINAL FIELDS TO BE REACTIVATED DREW 44 BIDS FROM FOREIGN OIL COMPANIES 9308160112 930816 TECHNOLOGY PFIZER INC WILL OFFER FREE DRUGS TO THE POOR VIA SHARING THE CARE' TULSA OKLA PFIZER INC UNVEILED A PROGRAM TO PROVIDE PRESCRIPTION DRUGS FREE TO AS MANY AS ONE MILLION NEEDY PATIENTS AT AN ESTIMATED COST OF 15 MILLION TO 20 MILLION A YEAR DUBBED SHARING THE CARE THE PROGRAM WILL PROVIDE DRUGS THROUGH COMMUNITY MIGRANT AND HOMELESS HEALTH CENTERS TO INDIGENT PATIENTS WHO LACK DRUG COVERAGE THE PROGRAM IS THE LARGEST OF ITS KIND IN THE US ACCORDING TO PFIZER AND OTHER PROGRAM SPONSORS THE NATIONAL ASSOCIATION OF COMMUNITY HEALTH CENTERS AND NATIONAL GOVERNORS' ASSOCIATION PFIZER VICE CHAIRMAN EDWARD C BESSEY SAID THE PROGRAM FILLS A NEED WHILE THE PLAN FOR REFORMING THE US HEALTH CARE SYSTEM TAKES SHAPE ALTHOUGH MOST DRUG COMPANIES INCLUDING PFIZER HAVE LONG HAD PROGRAMS TO DONATE MEDICAL PRODUCTS TO THE NEEDY THE PROGRAMS WEREN'T WELL PUBLICIZED LATELY PHARMACEUTICAL COMPANIES HAVE SPOTLIGHTED THOSE EFFORTS IN ORDER TO COUNTER HARSH CRITICISM IN THE HEALTHCARE DEBATE OVER HIGH DRUG PRICES 9308160111 930816 REVIEW & OUTLOOK EDITORIAL ASIDES ROCK ON THE ROCK AND ROLL HALL OF FAME AND MUSEUM LOCATED IN DOWNTOWN CLEVELAND HAS FOUND ITSELF A DIRECTOR THE FELLOW WHO RAN THE CINCINNATI MUSEUM THAT MADE ROBERT MAPPLETHORPE FAMOUS DENNIS BARRIE SURVIVED THE OBSCENITY CHARGES OVER THE LATE MR MAPPLETHORPE'S HOMOEROTIC PHOTOGRAPHS BUT THE MAPPLETHORPE SHOW IS LITTLE BOPEEP COMPARED WITH THE POSSIBILITIES AVAILABLE FROM THE ARCHIVES OF ROCK ELVIS JIM MORRISON JANIS JOPLIN THE PLASTER CASTERS WE HOPE THE ESTEEMED CLEVELAND MUSEUM OF ART CAN HANDLE THE COMPETITION 9308160110 930816 OTC FOCUS SMR' STOCKS ARE PROVING POPULAR WAY TO INVEST IN WIRELESS COMMUNICATIONS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BUYING BIG CELLUAR STOCKS ISN'T THE ONLY WAY TO INVEST IN THE HOT NEW WAVE OF WIRELESS COMMUNICATIONS SOME INVESTORS ARE SNATCHING UP SHARES OF COMPANIES THAT PROVIDE SPECIALIZED MOBILE RADIO OR SMR WIRELESS COMMUNICATIONS SERVICES A TECHNOLOGY CLOSELY AKIN TO CELLULAR TELECOMMUNICATIONS STRONG DEMAND FOR TWO MOST RECENT NEW ISSUES OF SMR STOCKS CENCALL COMMUNICATIONS AND PITTENCRIEFF COMMUNICATIONS SHOWS WALL STREET'S INCREASING APPETITE FOR WIRELESS STOCKS LAST TUESDAY CENCALL OFFERED SHARES AT 19 THE TOP OF ITS RANGE THROUGH UNDERWRITERS LED BY MERRILL LYNCH THE STOCK HAS RISEN AS HIGH AS 25 1/4 BEFORE SETTLING DOWN TO CLOSE AT 23 1/8 ON FRIDAY PITTENCRIEFF PRICED ITS SHARES AT 14 IN JUNE ABOVE ITS ORIGINAL RANGE OF 11 TO 13 THE STOCK IS NOW AT 15 1/4 THERE ARE GOBS OF THESE KINDS OF COMPANIES THAT COULD GO PUBLIC AND WITH THE INTEREST OUT THERE I WOULDN'T BE SURPRISED TO SEE A LOT MORE RAISING MONEY IN THE MARKET SAYS GEORGE ROBERTSON A TELECOMMUNICATIONS ANALYST WITH ALEX BROWN & SONS IN BALTIMORE THE STOCK MARKET ALREADY HAS EMBRACED THE BIG SMR NEXTEL COMMUNICATIONS FORMERLY CALLED FLEET CALL NEXTEL WENT PUBLIC IN JANUARY 1992 AND IS NOW TRADING AT MORE THAN TWICE ITS INITIAL OFFERING PRICE OF 15 NEXTEL CLOSED UNCHANGED FRIDAY AT 32 3/8 JUST OFF ITS 52WEEK HIGH OF 35 1/4 ONE REASON THE SMALLER SMR STOCKS HAVE GOTTEN SUCH A WARM RECEPTION IN THE MARKET IS THE HOPE THAT NEXTEL MIGHT ACQUIRE ONE OF THEM PITTENCRIEFF'S RURAL SERVICES IN TEXAS NEW MEXICO AND SURROUNDING STATES WOULD MAKE IT AN APPEALING ACQUISITION FOR NEXTEL TO ADD TO ITS METROPOLITAN AREAS SAYS EDWARD KEELY AN ASSISTANT PORTFOLIO MANAGER WITH FOUNDERS ASSET MANAGEMENT IN DENVER THERE IS A CRAZE GOING ON FOR THESE COMPANIES SAYS MR KEELY I WOULDN'T LOAD UP TO THE GILLS BUT IF YOU FIND ONE WITH EARNINGS IT'S WORTH TAKING A LOOK AT HE BOUGHT PITTENCRIEFF AT THE OFFERING THE ABILENE TEXAS COMPANY LAST WEEK REPORTED SECONDQUARTER EARNINGS OF 13 CENTS A SHARE COMPARED WITH A LOSS OF THREE CENTS A YEAR EARLIER DENVERBASED CENCALL WHICH SERVES AREAS OF COLORADO KANSAS MISSOURI AND OKLAHOMA AND PARTS OF THE PACIFIC NORTHWEST HASN'T YET POSTED ANY EARNINGS SMR BULLS ARGUE THAT THE GOVERNMENT'S APPROVAL FOR SMRS TO DEVELOP HOOKUPS TO TELEPHONE NETWORKS HAS GIVEN THESE COMPANIES THE CHANCE TO COMPETE SUCCESSFULLY WITH CELLUAR OPERATORS AND TAKE A SIGNIFICANT PART OF THE MARKET SHARE IN WIRELESS COMMUNICATIONS A CELLULAR PHONE IS A RADIO LINKED TO A PHONE AND SMRS WERE A RADIO LINK SAYS JOHN BAUER A TELCOM ANALYST WITH PRUDENTIAL SECURITIES NOW THAT SMRS HAVE THE CONNECTION TO THE PHONES THEY ARE THE FUNCTIONAL EQUIVALENT OF CELLULAR MANY INVESTORS ARE CERTAIN THAT SMRS WILL BECOME STRONG COMPETITORS WITH CELLULAR THEY FIGURE THAT EVENTUALLY CELLULAR COMPANIES WILL BE FORCED TO LOWER THEIR PRICES TO COMPETE WITH OTHER WIRELESS SERVICES AND AT THEIR CURRENT PRICES ANALYSTS SUCH AS MR BAUER FIGURE THAT SMR STOCKS ARE A GOOD BUY COMPARED WITH CELLULAR STOCKS ONE MEASURE OF INVESTMENT VALUE IN THE WHOLE WIRELESS BUSINESS IS THE PRICE PER POTENTIAL CUSTOMER OR PRICE PER POP AT MCCAW CELLULAR'S CLOSING PRICE FRIDAY OF 51 1/4 A SHAREHOLDER IS PAYING ABOUT 230 PER POP BY COMPARISON NEXTEL HAS ABOUT A 36 VALUATION PER POP PITTENCRIEFF IS PRICED AT 12 PER POP AND CENCALL IS TRADING AT AROUND 19 PER POP BUT INVESTORS MIGHT NOT WANT TO DUMP THEIR CELLULAR STOCKS AND GRAB ONTO SMR SHARES JUST YET THERE ARE STILL A LOT OF QUESTIONS ABOUT THE TECHNOLOGY'S FUTURE AND HOW THE SERVICE IS GOING TO FIT INTO THE WIRELESS MARKET SHARE PIE YOU CAN'T MAKE THE SIMPLE CASE OF BEING BULLISH ON SMRS JUST BECAUSE IT'S CHEAP ON A PRICE PER POP BASIS COMPARED TO CELLUAR SAYS SCOTT BILLEADEAU A SENIOR ANALYST WITH PACIFIC CENTURY ADVISERS SMRS AND CELLULAR ARE NOT EQUIVALENT SMRS HAVE LESS CHANNEL CAPACITY AND ARE MORE FRAGMENTED JEFF MALET PRESIDENT OF PACIFIC CENTURY ADVISERS SAYS PITTENCRIEFF IS ONE OF ABOUT 15 STOCKS HE HOLDS IN THE OVERALL AREA OF WIRELESS COMMUNICATIONS BUT NEXTEL OR CENCALL AREN'T IN HIS PORTFOLIO WE'RE UPBEAT ON THE WHOLE WIRELESS SEGMENT BUT THE GROUP IS STILL IN THE FORMATIVE STAGES HE SAYS WE'RE NOT BEARISH ON SMRS WE'RE JUST CAUTIOUS AND SELECTIVE THIS IS A MANIA AND SMRS ARE AN IMPORTANT PART OF IT SAYS ROGER MCNAMEE OF INTEGRAL PARTNERS IN PALO ALTO CALIF BUT WIRELESS STOCKS HAVE HAD A BIG RUNUP AND THE VALUATIONS HAVE ALL GOTTEN VERY AGGRESSIVE STEADFAST BONDS AND MORE POSITIVE INFLATION NEWS SLIGHTLY LIFTED THE OVERTHECOUNTER MARKET THE NASDAQ COMPOSITE INDEX CLIMBED 114 OR 016 TO 71826 ADVANCING ISSUES OUTNUMBERED DECLINERS 1469 TO 1310 ON TOTAL VOLUME OF 2336 MILLION SHARES DOWN FROM THURSDAY'S 2713 MILLION THE DAY'S MOST ACTIVE STOCK CISCO SYSTEMS TUMBLED 3 7/8 TO 53 1/8 ON 66 MILLION SHARES AFTER TRADING CLOSED ON THURSDAY THE COMPUTER NETWORKING COMPANY REPORTED EARNINGS FOR ITS FISCAL FOURTH QUARTER ENDED JULY 25 OF 41 CENTS A SHARE UP FROM 21 CENTS A SHARE A YEAR EARLIER BUT THE RESULTS DISAPPOINTED SOME WALL STREET ANALYSTS WHO HAD HOPED CISCO WOULD EARN 43 CENTS OR 44 CENTS FOR THE QUARTER KNOWLEDGEWARE JUMPED 1 1/2 TO 11 3/4 THE ATLANTA SOFTWARE COMPANY REPORTED EARNINGS FOR ITS FISCAL FOURTH QUARTER ENDED JUNE 30 OF 21 CENTS A SHARE UP FROM 18 CENTS A YEAR EARLIER HAUSER CHEMICAL RESEARCH PLUNGED 7 7/8 TO 6 5/8 THE BOULDER COLO COMPANY SAID IT HAD BEEN NOTIFIED BY BRISTOLMYERS SQUIBB CO THAT IT WON'T RENEW ITS CONTRACT TO BUY BULK TAXOL PRODUCED BY HAUSER WHEN THE PACT EXPIRES AUG 14 1994 CASINO DATA SYSTEMS ROSE 1 3/4 TO 14 1/4 THE COMPANY SAID THE NEVADA GAMING CONTROL BOARD HAS APPROVED ITS NEW MULTISITE PROGRESSIVE SYSTEM THAT LINKS SLOT MACHINES THROUGHOUT THE STATE 9308160109 930816 WHO'S NEWS SUPERMARKETS GENERAL CORP SUPERMARKETS GENERAL CORP WOODBRIDGE NJ ANTHONY J CUTI WAS NAMED PRESIDENT OF THIS SUPERMARKET AND DRUGSTORE HOLDING COMPANY MR CUTI 47 YEARS OLD SUCCEEDS JACK FUTTERMAN WHO RETAINS HIS TITLES OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR CUTI JOINED THE COMPANY FROM BRISTOLMYERS SQUIBB CO IN 1990 AS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER HE RETAINS HIS TITLE AS CHIEF FINANCIAL OFFICER 9308160108 930816 LAW LEGAL BEAT LAWYERS WORK PRO BONO WIN BIG AWARD IN PERSONAL INJURY CASE BY MILO GEYELIN AND KATIA HETTER STAFF REPORTERS OF THE WALL STREET JOURNAL NINETEEN PLAINTIFFS' LAWYERS IN DENVER HAVE BROKEN THE MOLD IN A BIG WAY THEY'VE WON A SEVENFIGURE SETTLEMENT IN A HUGE PERSONALINJURY CASE AND THEY HAVEN'T SOUGHT A CUT OF THE AWARD IN FACT THE LAWYERS WILL RECEIVE NO FEE AT ALL IN THEIR REPRESENTATION OF VICTIMS OF A HORRENDOUS ACCIDENT IN WHICH A COLORADO STATE ROAD WORKER PUSHED A SEVENTON BOULDER WITH A BACKHOE OFF A MOUNTAIN SHOULDER AND INADVERTENTLY SENT IT FLYING 725 FEET INTO A BUS FILLED WITH TOURISTS NINE PEOPLE WERE KILLED AND NEARLY TWO DOZEN INJURED FREE LEGAL WORK IN PERSONALINJURY CASES IS NEARLY UNHEARDOF IN PART BECAUSE OF THE WAY FEES ARE USUALLY STRUCTURED IN SUCH CASES THE CLIENT TYPICALLY PAYS LITTLE OR NOTHING UPFRONT AND ONLY PAYS A SUBSTANTIAL SUM TO HIS LAWYER IF HE PREVAILS THEN THE AWARD IS CALCULATED AS A PERCENTAGE OF THE DAMAGES USUALLY IN THE 3040 RANGE WINNING PLAINTIFFS ARE GENERALLY HAPPY TO OBLIGE IN CONTRAST PRO BONO WORK IS CONSIDERD A MORE URGENT PRIORITY IN CRIMINAL CASES LANDLORDTENANT PROBLEMS OR CIVIL DISPUTES IN WHICH THE CLIENT IS UNABLE TO PAY A LAWYER'S USUAL HOURLY FEES BUT IN THE DENVER CASE THE PERSONALINJURY LAWYERS SAID THE FACT THAT MANY OF THE VICTIMS WERE FOREIGNERS UNFAMILIAR WITH THE US LEGAL SYSTEM AND THAT THEY HAD BIG MEDICAL BILLS TO PAY ON THEIR OWN MADE THIS AN EXCELLENT CASE TO HANDLE FREE OF CHARGE IN ADDITION THE CASE PRESENTED AN OPPORTUNITY FOR THE LAWYERS TO CHALLENGE LIMITS THAT THE STATE LEGISLATURE HAD PLACED ON DAMAGE AWARDS AS LEE ANDERSON WHO COORDINATED THE EFFORT PUT IT I THINK IT'S THE DUTY OF A GROUP OF LAWYERS TO RISE TO THE OCCASION AND SEEK JUSTICE OF THE NOTION THAT EVEN PLAINTIFFS' LAWYERS SOMETIMES CAN AFFORD TO WAIVE THEIR FEES HE ADDS I HOPE THIS BECOMES A PLATFORM FOR A WHOLE NEW PHILOSOPHY AND STATE OF MIND FOR THOSE OF US WHO BELIEVE THIS IS A PROFESSION THE SOCALLED BERTHOUD PASS ACCIDENT OCCURRED IN AUGUST 1987 AFTER COLORADO LEGISLATORS ENACTED A LEGALREFORM MEASURE IMPOSING A 150000 LIMIT ON INDIVIDUAL DAMAGE AWARDS AGAINST THE STATE AND A TOTAL DAMAGE LIMIT OF 400000 PER INCIDENT THAT MUST BE SPLIT AMONG ALL THE PLAINTIFFS MANY LAWYERS AND EVEN SOME LEGISLATORS CONCLUDED THAT THE AMOUNT WAS INSUFFICIENT TO FULLY COMPENSATE SOME OF THE VICTIMS OF THE ACCIDENT FOR EXAMPLE ONE A 24YEAROLD CARPENTER FROM HEIDELBERG GERMANY UNDERWENT SEVEN BRAIN SURGERIES AND SEVEN OTHER OPERATIONS IN DENVER AMASSING MORE THAN 328000 IN MEDICAL BILLS BEFORE HE DIED THE COLORADO SUPREME COURT HAD ALREADY UPHELD THE CAP ON INDIVIDUAL DAMAGE AWARDS MAKING CHANCES OF WINNING ANY MORE THAN THE TOTAL STATE LIMIT BLEAK THE COLORADO TRIAL LAWYERS ASSOCIATION WHICH WAS HOLDING ITS ANNUAL MEETING AT THE TIME OF THE ACCIDENT NONETHELESS DECIDED TO PROVIDE A VOLUNTEER LEGAL EFFORT TO CHALLENGE THE 400000 CAP OR FIND A WAY AROUND IT BUT MR ANDERSON'S GROUP ALSO INVOKED AN 1871 FEDERAL CIVIL RIGHTS LAW THE PLAINTIFFS ARGUED THAT THE ROAD CREW INVOLVED IN THE ACCIDENT WAS WORKING UNDER THE COLOR OF LAW AND HAD VIOLATED THE VICTIMS' CIVIL RIGHTS TO LIFE LIBERTY AND FREEDOM FROM PAIN AND SUFFERING THAT CLAIM SKIRTED THE STATELAW DAMAGES CAP BECAUSE IT WAS FILED UNDER FEDERAL LAW AND THOUGH THE APPROACH WAS SUMMARILY REJECTED BY THE TRIAL COURT THE COLORADO SUPREME COURT SIDED WITH PLAINTIFFS LAST YEAR ALLOWING THEM TO GO TO TRIAL BOTH SIDES APPEALED THEIR LOSSES TO THE US SUPREME COURT WHICH REFUSED TO HEAR THEM LAST OCTOBER SETTING IN MOTION SETTLEMENT TALKS THAT CULMINATED IN MARCH MANY STATES HAVE CAPS ON DAMAGE AWARDS BUT COLORADO'S HAVE BEEN THE MOST CONTROVERSIAL BECAUSE OF THE BERTHOUD PASS ACCIDENT LAST YEAR THE COLORADO LEGISLATURE RAISED THE LIMIT TO 600000 AND PASSED A LAW ALLOWING PLAINTIFFS TO APPEAL DIRECTLY TO THE STATE LEGISLATURE TO COLLECT THE BALANCE OF ANY JURY AWARD THAT IS HIGHER JURIES AREN'T TOLD OF THE CAP AND CAN AWARD WHATEVER THEY LIKE BUT THE AMOUNT IS AUTOMATICALLY REDUCED TO THE STATUTORY LIMIT MR ANDERSON WHO BECOMES PRESIDENTELECT OF THE COLORADO TRIAL LAWYERS ASSOCIATION THIS WEEK SAYS HE PLANS TO GET MORE PLAINTIFFS' LAWYERS INVOLVED IN PRO BONO WORK THE WORD IS OUT THAT WE AND OTHERS SIMILARLY MINDED ARE LOOKING FOR IT SAID MR ANDERSON WE'RE WAITING FOR THE NEXT ONE MEANWHILE IN THE BERTHOUD PASS CASE THE FULL SETTLEMENT AWARD WILL BE DOLED OUT TO VICTIMS AND THEIR FAMILIES UNDER A PLAN THAT IS NOW BEING SET UP BY A GROUP OF ARBITRATORS WHO ALSO ARE ACCEPTING NO MONEY A JURY IN WASHINGTON DC AWARDED DAMAGES FOR SEXUAL DISCRIMINATION IN A CASE BASED ON THE REPORT OF TESTERS WHO HAD POSED AS JOBSEEKERS TO FIND OUT WHETHER THE OWNER OF AN EMPLOYMENT SERVICE WAS ACTING UNLAWFULLY THE AWARD OF 79000 IN COMPENSATORY AND PUNITIVE DAMAGES AGAINST GALE MOLOVINSKY IS BELIEVED TO BE ONE OF THE FIRST JURY AWARDS NATIONALLY IN AN EMPLOYMENTDISCRIMINATION CASE INVOLVING TESTERS MR MOLOVINSKY'S AGENCY EXECUTIVE SUITE SELLS LISTS OF EMPLOYERS BY CATEGORY TO JOB SEEKERS THE JURY SPLIT THE AWARD BETWEEN THE WOMAN WHO BROUGHT THE INITIAL COMPLAINT TO THE FAIR EMPLOYMENT COUNCIL OF GREATER WASHINGTON WHICH CONDUCTED THE TESTS AND THE TWO FEMALE TESTERS WHO SAID THEY WERE SEXUALLY HARASSED IN THE COURSE OF THEIR MOCK JOB SEARCHES THE TESTERS WERE AWARDED DAMAGES ON THE THEORY THAT ALTHOUGH THEY WEREN'T REALLY SEEKING JOBS THEY HAD ACTUALLY BEEN HARASSED THE ORIGINAL COMPLAINANT MARIA HENDERSON TOLD THE FAIREMPLOYMENT COUNCIL THAT MR MOLOVINSKY HAD OFFERED TO ACCEPT SEX IN LIEU OF MONETARY PAYMENT AFTER SHE SAID SHE COULDN'T AFFORD HIS EMPLOYMENT SERVICE'S FEES ACCORDING TO MR SELLERS COCOUNSEL FOR THE FAIREMPLOYMENT COUNCIL IN THIS CASE IN RESPONSE TO HER COMPLAINT THE FEC SENT FOUR TESTERS MEN AND WOMEN WHO WEREN'T REAL JOB APPLICANTS TO THE BUSINESS TO SEE IF THEY WERE TREATED EQUALLY THE TWO WOMEN TESTIFIED THAT MR MOLOVINSKY RESPONDED TO THEIR COMMENTS ABOUT HIS HIGH FEES WITH SIMILAR REMARKS TO THOSE REPORTED BY MS HENDERSON MR SELLERS SAID THE MALE TESTERS WERE TOLD TO GO EARN ENOUGH MONEY TO PAY FOR THE COST OF HIS SERVICES MR MOLOVINSKY SAID HE PLANS TO APPEAL HE MAINTAINS THAT HIS TYPE OF BUSINESS SELLING LISTS OF EMPLOYERS DOESN'T FALL UNDER WASHINGTON'S JOBDISCRIMINATION LAW THE DECISION FOLLOWS ON THE HEELS OF A LAWSUIT FILED BY THE MASSACHUSETTS COMMISSION AGAINST DISCRIMINATION AGAINST BROOKS BROTHERS INC IN ONE OF THE FIRST JOBBIAS ACTIONS TO RELY ON THE USE OF TESTERS BROOKS BROTHERS SETTLED THE CASE WITHOUT ADMITTING WRONGDOING IN CASES DATING BACK TO 1958 THE US SUPREME COURT HAS RULED THAT TESTERS HAVE STANDING IN CASES INVOLVING DISCRIMINATION IN PUBLIC ACCOMMODATIONS AND HOUSING THE COURT HASN'T EXPRESSLY RULED ON THE USE OF TESTERS IN EMPLOYMENT CASES WHO'S NEWS JON M JOYCE FORMER CHIEF OF THE ECONOMIC LITIGATION SECTION FOR THE ANTITRUST DIVISION OF THE US DEPARTMENT OF JUSTICE HAS JOINED ECONSULT CORP AS SENIOR VICEPRESIDENT IN ITS WASHINGTON DC OFFICE ECONSULT IS AN ECONOMIC CONSULTING AND LITIGATION SUPPORT FIRM WITH OFFICES IN WASHINGTON AND PHILADELPHIA 9308160107 930816 INDIA LAUNCHES SATELLITE CHANNELS DESPITE COURT CASE BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW DELHI INDIA'S STATEOWNED TELEVISION NETWORK DOORDARSHAN INAUGURATED FIVE SATELLITE CHANNELS SUNDAY TO COUNTER POPULAR FOREIGN CHANNELS THE NETWORK PRESSED AHEAD DESPITE A COURT CASE OVER PROGRAMMING IN ORDER TO BEGIN THE SATELLITE BROADCASTS AUG 15 THE ANNIVERSARY OF INDIA'S INDEPENDENCE AS PROMISED BY THE MINISTER OF INFORMATION AND BROADCASTING KP SINGH DEO I MADE A COMMITMENT AND THIS IS TOO IMPORTANT A DATE FOR ME TO MISS MR SINGH DEO SAID IN AN INTERVIEW THE NETWORK HAS DRAWN FIRE FOR ITS SYSTEM FOR SELECTING PRIVATE PRODUCERS OF PROGRAMMING FOR THE CHANNELS SEVERAL DISGRUNTLED PRODUCERS LAST MONTH TOOK DOORDARSHAN TO COURT PREVENTING IT FROM ALLOTTING TIME ON THE CHANNELS TO INDIVIDUAL PRODUCERS AND TELEVISION COMPANIES SO THE CHANNELS HAD TO BE LAUNCHED USING INHOUSE PRODUCTIONS EXISTING PROGRAMS AND LARGE NUMBERS OF FILMS THE CHANNELS WERE MADE POSSIBLE BY LAST MONTH'S LAUNCH OF INSAT IIB AN INDIAN COMMUNICATIONS SATELLITE THE IDEA IS TO PROVIDE PROGRAMS IN ENGLISH HINDI AND OTHER INDIAN LANGUAGES IN AN EFFORT TO WEAN AUDIENCES FROM HONG KONG'S STAR TV AND OTHER COMPETITORS BASED ABROAD STAR TV IS 64OWNED BY AUSTRALIAN MEDIA COMPANY NEWS CORP UNTIL LAST YEAR WHEN SATELLITE CHANNELS CAME INTO INDIA IN A BIG WAY THROUGH CABLE NETWORKS TELEVISION WAS A GOVERNMENT MONOPOLY DOORDARSHAN OPERATED ONE NATIONAL CHANNEL AND FOUR LOCAL CHANNELS IN DELHI BOMBAY CALCUTTA AND MADRAS THE NETWORK'S QUALITY AND PROGRAMMING WERE OFTEN CRITICIZED THAT'S ONE REASON WHY DOORDARSHAN ANNOUNCED IN EARLY JUNE THAT RATHER THAN MAKING ITS OWN JUDGMENTS ON PROGRAMS IT WOULD SIMPLY SELL TIME SLOTS TO INDEPENDENT PRODUCERS AND TV COMPANIES THE SYSTEM ALLOWS DOORDARSHAN TO EARN FEES WHILE LEAVING IT UP TO OUTSIDE PRODUCERS TO ATTRACT AN AUDIENCE MARKET ADVERTISING TIME AND MAKE THEIR INVESTMENTS PAY OFF IN PRELIMINARY DISCUSSIONS WITH THE NETWORK MOST PRODUCERS OPPOSED THE PLAN BUT DOORDARSHAN STUCK WITH ITS DECISION ANNOUNCING THAT IT WOULD ACCEPT BOOKINGS STARTING JULY 5 SO IN JUNE A LINE BEGAN FORMING OUTSIDE THE OFFICE DESIGNATED TO ACCEPT APPLICATIONS ON A FIRSTCOMEFIRSTSERVED BASIS REPRESENTATIVES OF PRODUCERS AND TELEVISION COMPANIES SAT AROUND THE CLOCK THROUGH BLAZING HEAT AND MONSOON DOWNPOURS WHILE THOSE WHO HADN'T JOINED SOON ENOUGH STARTED RIVAL QUEUES THE LINE REMAINS IN PLACE AWAITING A COURT VERDICT ON ITS LEGITIMACY AND DOORDARSHAN'S PLAN NEARLY EIGHT WEEKS AFTER IT STARTED 9308160106 930816 SUMITOMO IS SEEN PLANNING TO REOPEN PLANT IN DECEMBER BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO SUMITOMO CHEMICAL CO IS EXPECTED TO ANNOUNCE EARLY THIS WEEK THAT IT WILL RESTART PRODUCTION OF A KEY CHEMICAL FOR THE SEMICONDUCTOR INDUSTRY IN DECEMBER EARLIER THAN MANY IN THE INDUSTRY HAD EXPECTED PRODUCTION WAS HALTED AT THE PLANT IN NIIHAMA JAPAN AFTER AN EXPLOSION LAST MONTH THE FACILITY SUPPLIED NEARLY 65 OF THE WORLD'S SUPPLY OF HIGHGRADE EPOXY CRESOL NOVOLAC RESIN A SUBSTANCE USED TO SEAL COMPUTER CHIPS INTO PLASTIC PACKAGES SINCE THE ACCIDENT SPOT PRICES OF MEMORY CHIPS HAVE RISEN SHARPLY ON EXPECTATIONS OF A SHORTAGE EARLY NEXT YEAR AT THE TIME OF THE ACCIDENT NO NONJAPANESE COMPANIES MADE THIS GRADE OF RESIN SUMITOMO CHEMICAL HAD NO OFFICIAL COMMENT ON ITS PLANS INDIVIDUALS CLOSE TO THE INDUSTRY HOWEVER SAID THE COMPANY COMPLETED ITS INTERNAL INVESTIGATION OF THE ACCIDENT AND FOUND THE DAMAGE WAS LESS SEVERE THAN FEARED OF TWO LINES THAT PRODUCED THE EPOXY RESIN ONE IS THOUGHT TO BE RELATIVELY UNDAMAGED AND CAPABLE OF SUPPORTING PRODUCTION AGAIN BY DECEMBER OTHER RESIN MAKERS NIPPON KAYAKU CO AND DAINIPPON INK & CHEMICALS INC OF JAPAN AND CHANG CHUNG PLASTICS IN TAIWAN ARE RAMPING UP PRODUCTION AND MANY COMPANIES HAVE INVENTORIES OF BOTH EPOXY RESIN AND AN INTERMEDIATE MATERIAL CALLED MOLD COMPOUND WITH THOSE THREE FACTORS SUMITOMO CHEMICAL AND JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY BELIEVE THERE WILL BE NO CONCERN ABOUT SUPPLY FOR SOME TIME SAID ONE INDIVIDUAL FAMILIAR WITH THE SITUATION THE MAIN POTENTIAL SNAG REMAINING IS SAID TO BE THE NEED TO OBTAIN APPROVAL TO RESTART THE PLANT FROM THE NIIHAMA CITY GOVERNMENT BECAUSE THE ACCIDENT KILLED ONE WORKER AND INJURED THREE OTHERS THE LOCAL POLICE AND FIRE AGENCIES ISOLATED THE SITE FOR A MONTH WHILE THEY INVESTIGATED THE COMPANY FOR POSSIBLE CRIMINAL LIABILITY THAT INVESTIGATION ENDED TWO WEEKS AGO AND NOW THE LOCAL GOVERNMENT'S APPROVAL IS NEEDED FOR SUMITOMO CHEMICAL'S PLANS TO REOPEN THE FACTORY INDIVIDUALS CLOSE TO THE INDUSTRY EXPECT THAT APPROVAL BY EARLY THIS WEEK AFTER WHICH THE COMPANY WILL ANNOUNCE ITS PLANS THERE MAY BE A SHORTAGE IN EARLY NOVEMBER DECEMBER AND JANUARY AND THERE MAY BE A SHORTAGE IN PARTICULAR GRADES OF THE EPOXY RESIN SAID TOMMY TANG A CHEMICAL ANALYST WITH BARING SECURITIES JAPAN LTD WHO SAYS HE WAS RECENTLY BRIEFED BY SUMITOMO CHEMICAL BUT THE OVERALL SHORTAGE MAY NOT BE VERY SERIOUS IRONICALLY THE INDIVIDUALS CLOSE TO THE INDUSTRY SUGGESTED THAT BECAUSE OF THE MEASURES TAKEN TO RAMP UP EPOXYRESIN PRODUCTION AT OTHER MAKERS MITI IS NOW WORRIED ABOUT A POSSIBLE OVERSUPPLY 9308160105 930816 CREDIT RATINGS DAIWA BANK LTD OSAKA JAPAN MOODY'S INVESTORS SERVICE INC CITING THE BANK'S MOVE TO ACQUIRE COSMO SECURITIES CO A DISTRESSED SECURITIES CONCERN PLACED DAIWA AND ITS GUARANTEED SUBSIDIARIES UNDER REVIEW FOR POSSIBLE DOWNGRADE OF LONGTERM AND SHORTTERM RATINGS APPROXIMATELY 14 BILLION OF LONGTERM DEBT IS COVERED BY THE REVIEW INCLUDING SINGLEA1 SENIOR DEBT AS OF MARCH 31 DAIWA REPORTED COMBINED BANKING AND TRUSTACCOUNT ASSETS OF 289 BILLION COSMO ALSO BASED IN OSAKA REPORTED ASSETS OF 25 BILLION FOR THE SAME PERIOD 9308160104 930816 INTERNATIONAL NEW LEADERSHIP MAKES JAPAN RETHINK WAR PRIME MINISTER CRITICIZES WORLD WAR II ACTIONS NATION SEARCHES SOUL BY JOHN BUSSEY AND MICHAEL WILLIAMS STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO IN HIS FIRST PRESS CONFERENCE JAPAN'S NEW PRIME MINISTER LAST WEEK UTTERED A BRIEF STATEMENT THAT HAS REVERBERATED THROUGH JAPANESE SOCIETY JAPAN'S ROLE IN WORLD WAR II WAS ONE OF AGGRESSION AND WAS WRONG MORIHIRO HOSOKAWA SAID NEWSPAPERS HEADLINED THE REMARK AND TELEVISION NEWS PROGRAMS CHEWED OVER THE WORDS FOR DAYS MR HOSOKAWA WAS BRAVE SAID ONE EDITORIAL MR HOSOKAWA SHOULD RETRACT HIS REMARK DEMANDED A FELLOW POLITICIAN THE CONTROVERSY REFLECTS A SIMPLE FACT JAPAN HAS YET TO COME TO TERMS WITH ITS PAST TO DISTINGUISH ITSELF FROM THE PREVIOUS GOVERNING GROUP THE CONSERVATIVE LIBERAL DEMOCRATIC PARTY MR HOSOKAWA'S NEW RULING COALITION IS TAKING A MORE CRITICAL VIEW OF THE NATION'S WAR ROLE PAST GOVERNMENTS SIMPLY MUMBLED VAGUE APOLOGIES FOR THE NATION'S BRUTAL OCCUPATION OF MUCH OF ASIA SOME MIGHT CONSIDER THIS POLITICAL SUICIDE FOR THE NASCENT COALITION BUT APPARENTLY IT ISN'T MR HOSOKAWA HAS A 76 PUBLIC APPROVAL RATING ACCORDING TO A POLL RELEASED FRIDAY BY KYODO NEWS SERVICE THE RULING COALITION MADE ITS POINT AGAIN ON SUNDAY WHEN ONLY FOUR MEMBERS OF THE NEW CABINET ATTENDED ANNUAL CEREMONIES AT THE CONTROVERSIAL YASUKUNI SHRINE IN TOKYO TO PAY RESPECTS TO JAPAN'S WAR DEAD LAST YEAR WHEN THE LDP CONTROLLED THE GOVERNMENT 15 CABINET MEMBERS ATTENDED ALTHOUGH YASUKUNI IS OSTENSIBLY A MEMORIAL TO JAPANESE SOLDIERS WHO DIED IN WAR THE SHRINE LOCATED A SHORT WALK FROM TOKYO'S CENTRAL FINANCIAL DISTRICT ALSO IS ASSOCIATED WITH NATIONALISM AND TO SOME DEGREE A GLORIFICATION OF JAPAN'S WAR PAST IT IS FOR MODERN JAPANESE POLITICIANS LIKE MR HOSOKAWA A PLACE THAT IS POLITICALLY INCORRECT IT'S EASY TO SEE WHY INSIDE A MUSEUM ON THE GROUNDS VISITORS SUNDAY WALKED PAST DRAMATIC STATUARY AND DRAWINGS SHOWING JAPAN'S FIGHTING MEN AND THEIR SHIPS PLANES AND WEAPONS A LARGE EXHIBIT PAYS HOMAGE TO SUICIDE ATTACKS AND A PLAQUE PRAISES THESE FEARLESS MEN WHO STRUCK TERROR INTO THEIR FOES IT GOES ON THE DEVOTION OF THE TOKUBETSU KOGEKITAI SPECIAL ATTACK FORCE OR KAMIKAZE TROOPS WILL REMAIN FOREVER IN THE HEARTS OF THE JAPANESE AS AN EXPRESSION OF PATRIOTISM IN THE NOBLEST AND PUREST FORM THIS SPIRIT HAS LAID THE GROUNDWORK FOR THE PEACE AND PROSPERITY OF OUR NATION TODAY AND IN THE FUTURE MR HOSOKAWA MADE HIS REMARKS ABOUT THE WAR AT A TIME OF THE YEAR WHEN JAPAN TRADITIONALLY REFLECTS ON THE CONFLICT INDEED NEWSPAPERS THIS YEAR WERE AGAIN FILLED WITH STORIES ABOUT WORLD WAR II A MADEFORTELEVISION MOVIE LAST WEEK TOLD OF A JAPANESE WOMAN WHO GOES TO MALAYSIA AFTER THE WAR TO LOOK FOR HER LOST SOLDIER HUSBAND SHE FINDS HIM BUT HE REFUSES TO RETURN AFTER DESCRIBING ATROCITIES COMMITTED BY JAPANESE SOLDIERS DURING THE WAR HE SAYS HE WANTS TO STAY BEHIND TO HELP REBUILD HIS ADOPTED COUNTRY EARLIER THIS MONTH THE DEPARTING LDP LEADERSHIP FINALLY ADMITTED JAPAN FORCED SOME NONJAPANESE WOMEN TO PROVIDE SEX FOR JAPAN'S TROOPS DURING THE WAR THE ANNOUNCEMENT WAS A REMARKABLE IF BELATED ADMISSION ON SUNDAY THE NEW SPEAKER OF JAPAN'S LOWER HOUSE OF PARLIAMENT ALSO REFERRED TO THE SUFFERING OF OTHER ASIANS IN AN ANNUAL SPEECH ABOUT THE WAR AGAIN A DEPARTURE FROM THE PAST EVEN WITHIN THE NEW COALITION HOWEVER THERE ARE PROFOUNDLY DIFFERENT VIEWS OF THE WAR YEARS THE NEW GOVERNMENT COMPRISES BOTH CONSERVATIVE AND LIBERAL LAWMAKERS SO IT ISN'T CLEAR HOW FAR THE NEW OPENNESS WILL ACTUALLY GO SOME MEMBERS OF THE COALITION REPORTEDLY CHASTISED MR HOSOKAWA FOR HIS REMARK YET HIS BABYSTEP IN ALTERING THE NATION'S WAR CONSCIOUSNESS ALREADY HAS HAD AN EFFECT IN A LETTER TO THE EDITOR OF ONE NEWSPAPER AN AGING VETERAN SAID THAT AFTER HEARING MR HOSOKAWA'S REMARK HE BEGAN THINKING OF HIMSELF AS AN INVADER NOT A WAR VICTIM ANOTHER 71YEAROLD VETERAN WROTE I WAITED FOR THE EMPEROR SHOWA TO APOLOGIZE HIMSELF BUT HE PASSED AWAY WITHOUT DOING SO THE RESPONSIBILITY OF THE JAPANESE STATE AND THE JAPANESE PEOPLE HOWEVER HAS NOT GONE AWAY 9308160102 930816 ECONOMY US CAR SALES SLOWED IN EARLY AUGUST TO LOWEST RATE SINCE LATE FEBRUARY BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE AUTO MARKET ONE OF THE FEW BRIGHT SPOTS IN A SLUGGISH US ECONOMY COOLED OFF IN EARLY AUGUST AS SALES HIT THEIR LOWEST RATE SINCE LATE FEBRUARY NORTH AMERICANBUILT VEHICLES SOLD AT AN ANNUAL PACE OF 103 MILLION CARS AND TRUCKS FOR THE FIRST 10 DAYS OF AUGUST UP FROM A WEAK YEAREARLIER RATE OF 10 MILLION BUT DOWN SHARPLY FROM AN AVERAGE RATE OF 115 MILLION DURING JULY AUTO STOCKS FELL SHARPLY IN RESPONSE FRIDAY GENERAL MOTORS CORP STOCK DECLINED 150 TO 4575 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FORD MOTOR CO STOCK DROPPED 50 CENTS TO 51875 WHILE CHRYSLER CORP STOCK FINISHED AT 4250 DOWN 50 CENTS FOR THE PERIOD THE INDUSTRY SOLD 229333 NORTH AMERICANBUILT VEHICLES UP 36 FROM A YEAR EARLIER CAR SALES ROSE 27 WHILE TRUCK SALES CLIMBED 47 TENDAY SALES FIGURES FOR MOST IMPORTED VEHICLES WEREN'T AVAILABLE TIGHT INVENTORIES AUTO ANALYSTS WERE MORE SANGUINE ABOUT THE SALES SLOWDOWN ATTRIBUTING IT TO TIGHT INVENTORIES OF NEW CARS AND TRUCKS AS OF JULY 31 GM HAD ONLY A 46DAY SUPPLY OF CARS WHILE CHRYSLER HAD A 49DAY SUPPLY ACCORDING TO TRADE NEWSLETTER WARD'S AUTOMOTIVE REPORTS A 60 TO 65DAY SUPPLY IS CONSIDERED NORMAL THE TIGHT INVENTORIES EXPLAINED ANALYST JOSEPH PHILLIPPI OF LEHMAN BROS SHOULD BE SEEN AS GOOD NEWS SINCE IT MEANS AUTO MAKERS SHOULD GET STRONG DEMAND FOR THEIR 1994 MODELS WHICH GO ON SALE OCT 1 FOR THE FIRST TIME IN THREE TO FOUR YEARS WE DON'T HAVE TO HAVE A GIANT BLOWOUT SALE TO GET RID OF A LOT OF DEAD INVENTORY HE SAID MIKE BASS A FORD DEALER IN LORAIN OHIO SAID HE WAS RUNNING SHORT OF SEVERAL MODELS INCLUDING THE EXPLORER SPORTS UTILITY VEHICLE THE AEROSTAR VAN AND THUNDERBIRD SPORTS COUPE DEALERS SAID IT WAS STILL UNCLEAR WHAT EFFECT IF ANY THE RECENT PASSAGE OF PRESIDENT CLINTON'S DEFICIT REDUCTION PACKAGE IS HAVING ON CAR BUYERS ED BARWICK WHO OWNS A CHRYSLERPLYMOUTHDODGE DEALERSHIP AND A VOLVO DEALERSHIP IN NAPA CALIF SAID MANY OF HIS CUSTOMERS HAVE BEEN GRIPING ABOUT THE 43CENTAGALLON INCREASE IN THE FEDERAL GASOLINE TAX INCLUDED IN THE PACKAGE STILL MR BARWICK'S SALES HAVE PICKED UP IN AUGUST AFTER A POOR JULY GM'S OVERALL SALES SANK 18 IN EARLY AUGUST FROM A YEAR EARLIER CAR SALES ROSE 11 BUT TRUCK SALES DROPPED 59 THE FIRST TIME THEY HAVEN'T BESTED YEAREARLIER SALES SINCE EARLY JANUARY A GM SPOKESMAN ATTRIBUTED THE DROP LARGELY TO SHORT SUPPLIES OF FULLSIZE PICKUP TRUCKS ESPECIALLY THE EXTENDED CAB VERSION FORD'S OVERALL SALES ROSE 65 CAR SALES WERE UP A SCANT 05 BUT TRUCK SALES STRONG ALL YEAR CLIMBED 137 CHRYSLER DOESN'T RELEASE 10DAY SALES FIGURES BUT WARD'S AUTOMOTIVE REPORTS ESTIMATED THE NO 3 AUTO MAKER WHICH HAS ENJOYED STRONG DEMAND FOR ITS NEW LH MIDSIZE SEDANS POSTED A 153 INCREASE IN OVERALL VEHICLE SALES HONDA MOTOR CO HURTING THIS YEAR BECAUSE OF DECLINING SALES FOR THE ACCORD POSTED A 161 DROP IN OVERALL CAR SALES OTHER JAPANESE AUTO MAKERS FARED BETTER TOYOTA MOTOR CORP'S OVERALL SALES ROSE 28 WHILE SALES OF NISSAN MOTOR CO'S NORTH AMERICANBUILT MODELS IMPROVED 6 9308160101 930816 RETAILING RADIO SHACK'S HEAD BROADCASTS STRESS ON SERVICE BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL FORT WORTH TEXAS THE MARKETING WHIZ BROUGHT IN TO SPIFF UP RADIO SHACK'S DOWDY IMAGE YESTERDAY UNVEILED A BROAD MAKEOVER FOR THE SAGGING CONSUMERELECTRONICS RETAIL CHAIN THE CHANGES OUTLINED BY NEW RADIO SHACK PRESIDENT LEONARD ROBERTS IN A SATELLITE BROADCAST TO EMPLOYEES INCLUDE A BEVY OF SERVICES AIMED AT ATTRACTING NEW CUSTOMERS ESPECIALLY WOMEN AND CONSUMERS WARY OF TECHNOLOGY INCLUDED ARE PLANS TO OFFER DROPOFF REPAIR SERVICES FOR HOME ELECTRONICS DRIVETHROUGH WINDOWS FOR SMALL PURCHASES EVEN A GIFTWRAP AND DELIVERY SERVICE THAT MR ROBERTS HOPES WILL MAKE TANDY CORP'S FLAGSHIP CHAIN THE FTD OF THE HIGHTECH GIFT BUSINESS THE MESSAGE IS REALLY YOU'RE AT HOME HERE MR ROBERTS SAID IN AN INTERVIEW LAST WEEK DON'T LET THE TECHNOLOGY SCARE YOU PUT MORE BLUNTLY MR ROBERTS HOPES TO WAKE RADIO SHACK UP THE IDEA IS TO TAKE ADVANTAGE OF THE CHAIN'S ENORMOUS SIZE 6500 STORES ON EVERY CORNER OF AMERICA AS HE LIKES TO SAY TO COUNTERACT A WEAK PRODUCT SELECTION AND A FUZZY BRAND NAME PROBLEMS THAT HAVE KEPT SALES FLAT THE PAST TWO YEARS AMID INTENSIFIED COMPETITION TO ME WHEN YOU'RE FLAT FOR TWO OR THREE YEARS YOU'VE GOT TO TURN THE BUSINESS AROUND HE SAYS ANALYSTS FRUSTRATED BY WHAT THEY SEE AS YEARS OF MALAISE AT TANDY'S CASH COW AT LEAST GIVE MR ROBERTS CREDIT FOR TRYING IT'S A TWOFOOTED LONG JUMP BY A COMPANY THAT'S SPENT YEARS TAKING BABY STEPS SAYS LIZ BUYER AN ANALYST AT T ROWE PRICE IN BALTIMORE EVEN MORE NOTABLE THEY SAY IS THAT THE PROPOSED MAKEOVER COMES FROM AN EXECUTIVE WHO HAS BEEN ON THE JOB BARELY SIX WEEKS AND WHOSE BACKGROUND ISN'T IN CONSUMER ELECTRONICS MR ROBERTS 44 YEARS OLD JOINED RADIO SHACK IN JULY FROM SHONEY'S INC AND BEFORE THAT ARBY'S INC AT BOTH RESTAURANT CHAINS HE ENGINEERED SLICK MARKETING AND SALES CAMPAIGNS THAT ANALYSTS SAY HELPED RAISE PROFITS MARKEDLY DURING HIS TENURE THIS GUY HAS REALLY LOOKED AT THE PROBLEM AT RADIO SHACK WITH FRESH EYES SAYS WILLIAM A RELYEA A RETAIL ANALYST AT MARTIN SIMPSON & CO IN NEW YORK THIS COULD BE INTERESTING MR ROBERTS THE FIRST OUTSIDER EVER TO RUN RADIO SHACK ALREADY IS TAKING AIM AT SOME OF THE CHAIN'S SACRED COWS THOUGH HE SAYS THERE ARE NO PLANS TO CHANGE THE COMPANY'S NAME OFTEN ASSOCIATED WITH TINKERERS AND HIGHTECH HOBBYISTS HE SAYS HE IS TOYING WITH CHANGING THE COMPANY'S TAGLINE FROM THE TECHNOLOGY STORE TO SOMETHING MORE CONSUMERFRIENDLY AND THE COMPANY FOR THE FIRST TIME PLANS TO BEGIN CHARGING FOR ITS CATALOG MOREOVER RADIO SHACK'S ADVERTISING ACCOUNT NOW HELD BY GSD&M BASED IN AUSTIN HAS BEEN PUT UP FOR REVIEW MR ROBERTS SAYS WE LOSE A LOT OF CUSTOMERS TO A CONFUSED MARKETPLACE OUT THERE HE SAYS THIS IS MORE THAN JUST A STORE IT'S MORE THAN JUST SHELVES WITH PRODUCTS ON THEM SPECIFICALLY MR ROBERTS SAYS HE'S CONVINCED RADIO SHACK EVOKES TRUST AN ATTRIBUTE AT THE CENTER OF THE NEW SERVICERELATED CHANGES UNDER THE REPAIR PLAN FOR INSTANCE CUSTOMERS WILL BE ABLE TO DROP OFF BROKEN ELECTRONICS EQUIPMENT FROM ANY MAKER AT ANY RADIO SHACK STORE IN THE COUNTRY THE MERCHANDISE WILL BE SENT TO A CENTRALIZED REPAIR CENTER AND THEN BACK TO THE STORE FOR THE CUSTOMER TO PICK UP SIMILARLY CUSTOMERS WILL BE ALLOWED TO PICK THEIR CHOICE OF GIFT WRAP AND RIBBON FROM A DISPLAY IN THE STORE AFTER WHICH THEIR GIFT WILL BE SHIPPED ANYWHERE IN THE COUNTRY FROM A CENTRAL FACILITY WE'RE GOING TO TAKE THE FRUSTRATION AWAY MR ROBERTS SAYS ALL THE CHANGES COULD DOUBLE ANNUAL SALES AT THE AVERAGE RADIO SHACK STORE FROM ABOUT 500000 TODAY TO AS MUCH AS 1 MILLION IN THREE TO FIVE YEARS MR ROBERTS GUESSES HIS MOST CRITICAL BAROMETER OF SUCCESS HE SAYS WILL BE SAMESTORE SALES WHICH ROSE AN AVERAGE OF 3 FOR RADIO SHACK IN THE SECOND QUARTER HE SAYS THAT HIS PROPOSALS DON'T INCLUDE REDUCING THE NUMBER OF STORES AND THAT THE SERVICE CHANGES ARE HIGHMARGIN ADDITIONS THAT WILL REQUIRE RELATIVELY LITTLE ADDED STAFF WHILE WALL STREET ANALYSTS SEEM WILLING TO GIVE MR ROBERTS A CHANCE THEY SAY IT'S GOING TO TAKE MUCH MORE THAN A GIFTGIVING SERVICE AND A PLANNED NEW LOGO TO REINVIGORATE THE CHAIN THEY NOTE THAT RADIO SHACK'S CORE ELECTRONICS BUSINESS IS UNDER ATTACK FROM MORE QUARTERS THAN EVER INCLUDING MAILORDER PERSONALCOMPUTER COMPANIES CONSUMERELECTRONICS CHAINS AND EVEN HIGHTECH SUPERSTORES SUCH AS TANDY'S OWN COMPUTER CITY AND INCREDIBLE UNIVERSE CHAINS AND BECAUSE TANDY SOLD ITS COMPUTERMANUFACTURING BUSINESS TO AST RESEARCH INC THIS SPRING RADIO SHACK NO LONGER CAN ARGUE THAT IT OFFERS THE HOTTEST IN NEW TECHNOLOGY THOUGH CONSUMERS NEVER BOUGHT THAT PITCH ANYWAY ANALYSTS SAY LET'S NOT MAKE TOO MUCH OUT OF THIS SAYS MR RELYEA THE MARTIN SIMPSON ANALYST THIS IS NOT A YOUNG HORSE HERE IT'S NOT GOING TO BE GALLOPING BUT HOW ABOUT A BRISK TROT 9308160100 930816 GENERAL HOST EXPECTS TO POST LOSS FOR HALF AND SECOND QUARTER STAMFORD CONN GENERAL HOST CORP IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION SAID IT EXPECTS TO REPORT A LOSS FOR THE SECOND QUARTER AND THE FIRST HALF OF THE FISCAL YEAR FOR THE SECOND QUARTER ENDED AUG 15 THE SPECIALTY LAWN AND GARDEN RETAILER ESTIMATES A NET LOSS OF ABOUT 42 CENTS TO 45 CENTS A SHARE A YEAR EALIER THE COMPANY HAD A PROFIT OF ONE CENT A SHARE GENERAL HOST ESTIMATES SECONDQUARTER SALES WILL BE OFF ABOUT 10 FROM LAST YEAR'S 1204 MILLION GENERAL HOST WHICH OPERATES THE FRANK'S NURSERY & CRAFTS CHAIN SAID MIDWEST FLOODING AND EARLY HOT WEATHER IN THE EAST ARE ADVERSELY AFFECTING SALES IT PREDICTS A FIRSTHALF LOSS OF ABOUT 10 CENTS TO 13 CENTS A SHARE FOR THE 1992 HALF IT HAD PROFIT OF 56 CENTS A SHARE THE YEAREARLIER RESULTS INCLUDED GAINS OF 16 CENTS A SHARE FROM ACCOUNTING CHANGES RELATED TO INCOME TAXES AND FOUR CENTS A SHARE OF INCOME RECOGNITION FROM NONCOMPETITIVE AGREEMENTS THAT EXPIRED AT THE END OF THE HALF THE COMPANY HAS A 495 INTEREST IN SUNBELT NURSERY GROUP INC A SPECIALTY NURSERY LAWN AND GARDEN RETAILER IT CONTRIBUTED A LOSS OF ABOUT SIX CENTS PER SHARE IN THE SECOND QUARTER THE COMPANY SAID GENERAL HOST'S FILING WITH THE SEC SEEKS TO AMEND CERTAIN TERMS OF THE COMPANY'S 115 SENIOR NOTES TO FACILITATE ITS ANNOUNCED PLAN TO ACQUIRE THE REMAINING 505 STAKE IN SUNBELT 9308160099 930816 NEWS CORP'S FORAY IN ASIAN SATELLITE TV REFIRES US INTEREST HONG KONG NEWS CORP'S FORAY INTO SATELLITE TELEVISION IN ASIA HAS REFIRED US INVESTOR INTEREST IN THE COMPANY'S SHARES AND IS SUPPORTING THE PRICE OF ITS STOCK IN THE WAKE OF A SALE OF NEARLY 3 OF THE GLOBAL MEDIA CONCERN ON FRIDAY NEWS CORP SAID THAT COMPANIES ASSOCIATED WITH THE FAMILY OF HONG KONG BILLIONAIRE LI KASHING INCLUDING HONG KONGLISTED HUTCHISON WHAMPOA LTD HAD SOLD THEIR ENTIRE HOLDING IN NEWS CORP OF ABOUT 27 OR APPROXIMATELY 50 MILLION ORDINARY SHARES ONLY 18 DAYS AFTER ACQUIRING THE STAKE THE NEWS CORP SHARES WERE PARTIAL PAYMENT FOR 636 OF ASIAWIDE SATELLITE BROADCASTER STAR TV THAT NEWS CORP AGREED TO BUY LATE LAST MONTH A LI FAMILY SPOKESMAN SAID THE SALE REAPED A PROFIT OF APPROXIMATELY US26 MILLION FOR THE SELLERS NEWS CORP WHICH IS CONTROLLED BY AUSTRALIANBORN MEDIA MOGUL RUPERT MURDOCH DIDN'T COMMENT ON THE SALE OTHER THAN TO SAY THAT THE SHARES WERE SOLD THROUGH US INVESTMENT BANK GOLDMAN SACHS & CO PRIMARILY TO NUMEROUS US INVESTMENT INSTITUTIONS THROUGH A SPOKESMAN THE LI FAMILY SAID THEY BELIEVED THE PRICE WAS GOOD AND IT WAS THE RIGHT TIME TO SELL THE NEWS CORP SHARES AS FOR NEWS CORP ANALYSTS DOUBT THAT THE SALE OF THE STAKE REFLECTS ANY LOSS OF CONFIDENCE BY MR LI AND HIS FAMILY IN NEWS CORP AND THEREFORE ISN'T LIKELY TO UNNERVE OTHER NEWS CORP INVESTORS MY VIEW IS SIMPLY THAT MR LI PROBABLY WANTED CASH IN THE FIRST PLACE INSTEAD OF 5050 MIX OF SHARES AND CASH THAT NEWS CORP PREFERRED TO PAY SAID VIKTOR SHVETS WHO TRACKS NEWS CORP FOR SECURITIES FIRM MCINTOSH & CO IN SYDNEY THERE'S NOTHING ELSE TO BE READ INTO IT INDEED ON THE AUSTRALIAN STOCK EXCHANGE NEWS CORP SHARES SLIPPED JUST 15 AUSTRALIAN CENTS FRIDAY ON THE NEWS TO A890 US603 NEWS CORP WATCHERS SAID THE RELATIVELY SMALL FALL IN THE STOCK PRICE COMPARED WITH THE SALE OF SUCH A BIG BLOCK OF SHARES INDICATED THAT INVESTORS PARTICULARLY FROM THE US ARE KEEN ON THE STOCK 9308160098 930816 SWEDISH STOCKS ARE HOT ISSUES THIS SUMMER AS FOREIGN INVESTORS RUSH TO BUY DOMESTIC ONES PREFER TO TAKE VACATION BY STEPHEN D MOORE AND GLENN WHITNEY STAFF REPORTERS OF THE WALL STREET JOURNAL STOCKHOLM EDGY INVESTORS ARE BRACING FOR A SPATE OF CORPORATE EARNINGS REPORTS THIS WEEK THAT SHOULD SHOW IF A SUMMER SURGE ON THE STOCKHOLM STOCK EXCHANGE WAS JUST A FLASH IN THE PAN AFTER SPURTING 36 LAST WEEK STOCKHOLM'S AFFAERSVAERLDEN GENERAL INDEX IS UP 42 FOR THE YEAR TO DATE AND A LOFTY 21 SINCE MIDSUMMER EVE OR JUNE 25 THE TRADITIONAL OPENING DAY OF SWEDEN'S LENGTHY SUMMER VACATION UNLIKE MANY EARLIER SUMMER RALLIES CRAFTED ON MINUSCULE VOLUME THE STOCKHOLM EXCHANGE MAINTAINED NEAR RECORD TRADING VOLUMES THE PAST SIX WEEKS THIS TIME WHILE SWEDISH INVESTORS WERE SCATTERING TO THEIR SAILBOATS AND SUMMER COTTAGES INTERNATIONAL INVESTORS WENT ON A BUYING SPREE IGNORING SWEDEN'S DISMAL RECESSIONBATTERED ECONOMY AND VOLATILE POLITICAL SCENE FOREIGNERS WERE RIVETED BY WHAT DWINDLING INTEREST RATES A WEAKENED CURRENCY AND DRACONIAN COST CUTTING WOULD DO FOR CORPORATE PROFITS BY CONTRAST DOMESTIC INVESTORS HAVEN'T DONE MUCH TO SUSTAIN THE RALLY SINCE RETURNING TO THEIR TRADING SCREENS INDEED MANY BIG STOCKHOLM INVESTORS FRET THAT SWEDEN'S ECONOMIC WOES MAY SOON RETURN TO CENTER STAGE LIKE MOST EUROPEAN COUNTERPARTS SWEDEN'S RIKSBANK OR CENTRAL BANK HAS TRIMMED INTEREST RATES SINCE IT WAS RELIEVED OF THE CONSTRAINTS OF A FIXED EXCHANGE RATE POLICY LAST NOVEMBER AND FALLING RATES REMAIN PROBABLY THE BIGGEST SINGLE FACTOR UNDERPINNING THE STOCK MARKET RALLY BUT IT'S A BALANCING ACT AND EASING RATES TOO FAST WOULD CLEARLY ERODE THE KRONA'S VALUE MORE THAN POLICY MAKERS COULD TOLERATE THE KRONA'S VALUE ALSO WOULD BE JEOPARDIZED IF AS MANY OPPOSITION POLITICIANS DEMAND THE GOVERNMENT ATTEMPTS TO JUMPSTART THE ECONOMY THOUGH URGENTLY NEEDED SUCH STIMULUS MEASURES WOULD ALMOST CERTAINLY WIDEN A GAPING BUDGET DEFICIT NOW PROJECTED AT 13 OF GROSS DOMESTIC PRODUCT THE HIGHEST OF ANY MEMBER OF THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT LAST WEEK WHEN THE RIKSBANK TRIMMED ITS MARGINAL LENDING RATE BY 025 OF A PERCENTAGE POINT NERVOUS INVESTORS SENT THE KRONA TUMBLING NEARLY 2 IN TWO DAYS FINALLY FORCING THE CENTRAL BANK TO INTERVENE TO RESTORE CALM FOREIGN EXCHANGE TRADERS SAY THE WORST CASE SCENARIO FOR MANY INVESTORS HERE IS THAT THE RIKSBANK COULD WIND UP HAVING TO HIKE INTEREST RATES TO BUTTRESS THE KRONA'S VALUE IF RATES COME UP THERE'S A RISK THAT INVESTORS WOULD LOSE CONFIDENCE IN ALL SWEDISH FINANCIAL INSTRUMENTS WARNS JAN VERDING CHIEF ANALYST AT ALFRED BERG FONDKOMMISSION AB A BIG STOCKHOLM STOCKBROKERAGE BULLISH FIRSTHALF PROFIT REPORTS IN THE NEXT FEW DAYS FROM COMPANIES LIKE TELEFON AB LM ERICSSON AB VOLVO AB ELECTROLUX PLUS FORESTRY GIANTS AND STRUGGLING SWEDISH BANKS COULD DISPEL ALARM ABOUT THE ECONOMY AND GIVE THE STOCKHOLM MARKET A SECOND WIND CORPORATE PROFITS ARE VIRTUALLY CERTAIN TO REBOUND SHARPLY FROM DEPRESSED YEAR EARLIER LEVELS THANKS TO THE KRONA'S DRASTIC DEPRECIATION BUT THERE IS NAGGING WORRY THAT THE ANEMIC STATE OF EUROPEAN ECONOMIES MIGHT HOLD THE DEVALUATIONBASED CORPORATE PROFIT WINDFALL BELOW MANY ANALYSTS' EXPECTATIONS ONE HINT OF MARKET JITTERS WAS LAST FRIDAY'S SUDDEN FALL IN ERICSSON'S BENCHMARK BSHARES BY EIGHT KRONOR US 98 CENTS OR 2 TO 378 KRONOR EACH IN VOLATILE TRADING THE HIGHFLYING TELECOMMUNICATIONS EQUIPMENT SUPPLIER WILL RELEASE ITS FIRSTHALF REPORT ON THURSDAY OF COURSE AN INFLUX OF US INVESTORS ALSO HAS BEEN CREDITED FOR RECENT RISES ELSEWHERE AROUND EUROPE INCLUDING THE UK WHERE STOCK PRICES SHOT UP 6 IN THE PAST MONTH AND FRANCE WHERE THE CORRESPONDING RISE WAS 85 BUT INTERNATIONAL ANALYSTS CLAIM STOCKHOLM'S OUTPERFORMANCE UNDERSCORES A SPECIAL LINK WITH THE DOLLAR'S RECENT RISE AGAINST MOST EUROPEAN CURRENCIES ANDREW GARTHWAITE HEAD OF ASSET ALLOCATION AT SG WARBURG SECURITIES IN LONDON CALCULATES THAT THE SWEDISH EQUITY MARKET HAS THE HIGHEST CORRELATION OF ANY IN EUROPE WITH THE VALUE OF THE US DOLLAR AS THE GREENBACK GOES UP SO DO SWEDISH STOCKS AND VICE VERSA THAT CORRELATION REFLECTS DOMINANCE OF BIG EXPORTERS AMONG STOCKHOLM ISSUES THE US IS VOLVO'S BIGGEST MARKET AS SWEDISH CURRENCY WEAKENS DOLLARS EARNED IN THE US TRANSLATE INTO A LOT MORE KRONOR AND HIGHER PROFIT IN VOLVO'S ACCOUNTS DESPITE A WIDENING FIRSTQUARTER LOSS AND FALLING SALES VOLVO'S BENCHMARK CLASS B STOCK IS UP 33 FOR THE YEAR TO DATE SWEDISH FORESTRY GIANTS WITH MOST COSTS IN SWEDEN BUT EXPORTS PRICED AND INVOICED PREDOMINANTLY IN DOLLARS SEEM ON THE BRINK OF AN EVEN BIGGER CURRENCY WINDFALL SHARES OF STORA KOPPARBERGS BERGSLAGS AB EUROPE'S BIGGEST PULP AND PAPER COMPANY HAVE SURGED 26 SINCE MIDSUMMER AND 36 FOR THE YEAR TO DATE NATURALLY THE SWEDISH KRONA'S DECLINE BY 17 SO FAR THIS YEAR BUT A WHOPPING 28 SINCE THE UNIT BEGAN FLOATING FREELY LAST NOVEMBER HAS MADE SWEDISH STOCKS SEEM CHEAP TO FOREIGN INVESTORS IN ADDITION ABOLITION OF PREVIOUS RESTRICTIONS ON SHARE OWNERSHIP BY FOREIGNERS HAS PROMPTED SOCALLED INDEX FUNDS TO RAISE WEIGHTINGS OF SWEDISH STOCKS FURTHER WHETTING DEMAND NET SALES OF SWEDISH STOCKS TO NONSWEDISH INVESTORS SOARED 55 DURING THIS YEAR'S FIRST HALF TO 104 BILLION KRONOR AND ANALYSTS ESTIMATE INTERNATIONAL INVESTORS WILL OWN MORE THAN 20 OF ALL SWEDISH SHARES BY YEAR END DOUBLE THE 10 LEVEL AS RECENTLY AS JANUARY 1992 PERHAPS MORE IMPORTANTLY VOLVO STORA AND MANY OTHER SWEDISH BLUECHIPS ALSO HAVE TAKEN PAINFUL STEPS TO HELP THEMSELVES AS WELL CRAIG KNOX HEAD OF INVESTMENT STRATEGY AT LAZARD BROTHERS INVESTORS IN LONDON GIVES SWEDISH COMPANIES A LOT OF CREDIT FOR WAKING UP TO THE REAL WORLD THERE'S BEEN A HUGE AMOUNT OF RESTRUCTURING WHICH MAKES THEM COMPANIES MORE COMPETITIVE INTERNATIONALLY MR GARTHWAITE THE WARBURG ANALYST AGREES THAT SWEDISH COMPANIES HAVE CUT STAFF PROPORTIONATELY MORE THAN ANY OTHER COUNTRY IN EUROPE YET HE FRETS THE OUTLOOK REMAINS SOMEWHAT UNCERTAIN GIVEN THAT EARNINGS HAVE BEEN SO DEPRESSED YOU'RE TAKING A BIT OF A LEAP OF FAITH FOR THE FUTURE ONE SENIOR STOCKHOLM FUND MANAGER CHUCKLES AT THE NAIVETE OF AMERICAN INVESTORS WHO ARGUE FUNDAMENTAL ANALYSIS EXPLAINS RAPID RISES IN SMALL MARKETS WHEN SHEER WEIGHT OF MONEY IS A FAR MORE POTENT FORCE SOMETIMES I THINK US INVESTORS SIMPLY CAN'T UNDERSTAND HOW EVEN MODESTSIZE INVESTMENTS BY AMERICAN STANDARDS CAN'T HELP BUT SEND PRICES THROUGH THE ROOF IN A MARKET THE SIZE OF STOCKHOLM HE SAYS ABOUT THE ONLY UPBEAT DOMESTIC INDICATOR WAS THE FACT THAT INSURERS WERE NET PURCHASERS OF EQUITIES DURING THE SECOND QUARTER REVERSING SEVERAL QUARTERS DURING WHICH THEY SOLD SHARES AND INSTEAD LOADED UP ON FIXED INCOME SECURITIES 9308160097 930816 UNOCAL AGREES TO PAY ALASKA 698 MILLION TO END TAX DISPUTE LOS ANGELES UNOCAL CORP AGREED TO PAY THE STATE OF ALASKA 698 MILLION TO SETTLE A DECADEOLD DISPUTE OVER STATE OIL AND GAS TAX LIABILITIES BUT SAID THE PAYMENT WON'T AFFECT 1993 EARNINGS A SPOKESWOMAN FOR THE OIL COMPANY SAID UNOCAL HAD RESERVED FUNDS FOR THE SETTLEMENT TO BE PAID LAST FRIDAY THE DISPUTE CENTERED ON THE VALUE OF CRUDE OIL AND NATURAL GAS THAT UNOCAL PRODUCED FROM 1978 THROUGH 1982 AND ON RELATED TAXES UNOCAL'S PAYMENT OF 268 MILLION IN TAXES AND 43 MILLION IN INTEREST WAS THE LATEST IN A STRING OF SETTLEMENTS BETWEEN THE STATE OF ALASKA AND NORTH SLOPE DRILLERS A UNIT OF BRITISH PETROLEUM CO REACHED A 630 MILLION SETTLEMENT AGREEMENT WITH ALASKA IN FEBRUARY JIM BALDWIN ALASKA'S ASSISTANT ATTORNEY GENERAL SAID THE SETTLEMENTS STEM FROM A TWOANDAHALFYEAR DRIVE TO RESOLVE TAX LIABILITIES WE'VE BEEN TRYING TO WRAP UP THESE OLD TAX YEARS WHEN A LOT OF OIL REVENUES WERE INCURRED HE SAID ADDING THAT SETTLEMENTS FOR LATER YEARS MAY NOT BE AS SIGNIFICANT AS THOSE REACHED IN RECENT MONTHS UNOCAL IS IN DISCUSSIONS WITH ALASKA OVER PENDING DISPUTES ON SIMILAR TAX LIABILITIES FROM 1983 THROUGH 1986 THE SPOKESWOMAN SAID SHE DIDN'T GIVE DETAILS 9308160096 930816 MUTUAL FUND SALES AT BANK MACHINES GAIN IN POPULARITY BY MARY ROMANO SPECIAL TO THE WALL STREET JOURNAL NEW YORK BUYING SHARES IN CERTAIN MUTUAL FUNDS IS GETTING AS EASY AS PULLING CASH OUT OF A BANK'S AUTOMATED TELLER MACHINE BANKS HAVE BEEN ADDING MUTUAL FUND TRANSACTIONS TO THE LIST OF FUNCTIONS ON THEIR ATMS IN ADDITION TO MAKING A DEPOSIT OR CHECKING A BALANCE INVESTORS NOW CAN BUY SHARES IN THEIR EXISTING MUTUAL FUND ACCOUNTS MAKE SWITCHES AMONG FUNDS AND REDEEM SHARES BY TRANSFERS TO ANOTHER ACCOUNT AT THE BANK IT'S THE LATEST INNOVATION FROM AN INDUSTRY EAGER TO STANCH THE HEMORRHAGING THAT HAS LOST BILLIONS OF DEPOSIT DOLLARS TO THE HIGHER RETURNS OF MUTUAL FUND MANAGERS MOVING MONEY IN AND OUT OF MUTUAL FUNDS WITH A PIECE OF PLASTIC MAY HAVE A DOWNSIDE HOWEVER CRITICS ARGUE THAT INVESTORS OUGHT TO CONCERN THEMSELVES WITH MORE IMPORTANT CRITERIA THAN CONVENIENCE JUST LAST WEEK WELLS FARGO & CO STARTED A SERVICE PERMITTING CUSTOMERS ACCESS TO THE BANK'S STAGECOACH FUNDS THE FAMILY OF FUNDS MANAGED BY WELLS FARGO FROM ANY OF THE WELL FARGO'S 1700 ATMS INVESTORS CAN CHECK CURRENT FUND SHARE PRICES MAKE EXCHANGES BETWEEN STAGECOACH FUNDS AND REDEEM OR PURCHASE FUND SHARES BY TRANSFERS TO OR FROM OTHER WELLS FARGO ACCOUNTS REDEMPTIONS HOWEVER CAN'T BE TAKEN IN CASH THE WELLS FARGO SERVICE IS UNUSUAL IN THAT IT INCLUDES NOT JUST MONEY MARKET BUT STOCK AND BOND FUNDS WHAT CUSTOMERS CAN'T DO AT WELLS FARGO AND OTHER BANKS IS INITIATE AN INVESTMENT IN A NEW MUTUAL FUND THAT WOULD REQUIRE A PROSPECTUS AND IN EVERY CASE SO FAR AT LEAST BANKS PERMIT ATM ACCESS ONLY FOR FUNDS THEY RUN THE STRATEGY IS TO TRY TO COMBINE THE BEST IN BANKING AND THE BEST IN MUTUAL FUNDS SAID PETER HERLIHY VICE PRESIDENT OF MARKETING FOR FLEET INVESTMENT YOU'LL SEE OTHER BANKS TRYING TO ADD THESE SERVICES IT'S A COMPETITIVE ADVANTAGE CITICORP'S CITIBANK UNIT HAS LET ITS CUSTOMERS CHECK BALANCES ON THEIR LANDMARK MONEY MARKET FUNDS THROUGH ATMS FOR THE PAST SIX MONTHS A COUPLE OF MONTHS AGO THE BANK EXPANDED THE SERVICE TO INCLUDE ALL TRANSACTIONS IN ITS LANDMARK MONEY MARKET FUNDS BERT EINLOTH A MANAGING DIRECTOR OF MARKETING FOR CITIBANK SAID THE BANK PLANS EVENTUALLY TO INCLUDE ALL ITS PROPRIETARY STOCK AND BOND FUNDS IN THE ATM SERVICE OTHER BANKS AREN'T FAR BEHIND CHASE MANHATTAN CORP'S VISTA FUND FAMILY IS LOOKING TO START A SIMILAR SERVICE FOR MONEY MARKET ACCOUNTS SOMETIME IN 1994 SAID PAUL KLUG WHO OVERSEES THE VISTA FUNDS BAYBANKS INC IN BOSTON ALSO IS CONSIDERING SUCH A SERVICE 9308160095 930816 WORTHINGTON EXPECTS LOWFAT FOODS TO BOOST RESULTS IN 2ND HALF AND 1994 BY RALPH E WINTER STAFF REPORTER OF THE WALL STREET JOURNAL WORTHINGTON OHIO WORTHINGTON FOODS INC EXPECTS ITS NEW LINE OF LOWFAT FOODS TO BOOST SALES AND EARNINGS IN THE SECOND HALF AND IN 1994 SAID DALE E TWOMLEY PRESIDENT AND CHIEF EXECUTIVE OFFICER THE VEGETARIANFOOD CONCERN ACHIEVED SHARP SALES INCREASES IN MARKETS WHERE ITS REFORMULATED AND NEW PRODUCTS HAVE BEEN INTRODUCED MR TWOMLEY SAID AND INITIAL TESTS OF A MEAT SUBSTITUTE PATTY AT FOUR BURGER KING RESTAURANTS INDICATE STRONG DEMAND FOR THE PRODUCT IN AT LEAST SOME FASTFOOD RESTAURANTS HE SAID MR TWOMLEY DECLINED TO MAKE SPECIFIC EARNINGS ESTIMATES BUT HE DOESN'T QUARREL WITH ANALYSTS' PROJECTIONS FOR SECONDHALF PROFIT OF 27 CENTS TO 29 CENTS A SHARE COMPARED WITH NET INCOME OF 12 MILLION OR 23 CENTS A SHARE A YEAR EARLIER FIRSTHALF PERSHARE NET DROPPED TO 26 CENTS FROM 37 CENTS A YEAR EARLIER ON A SMALLER NUMBER OF SHARES MAINLY BECAUSE OF A BRIEF RISE IN THE PRICE OF EGG WHITES THE PRINCIPAL INGREDIENT IN THE COMPANY'S EGG SUBSTITUTES MR TWOMLEY SAID THAT THE EGGWHITE PRICE JUMP COST WORTHINGTON 11 CENTS A SHARE IN THE HALF BUT THAT PRICES RECENTLY RETURNED TO NORMAL LEVELS HE SAID THERE'S NO GENERALLY ACCEPTED EXPLANATION FOR THE SPURT BECAUSE OF THE FIRSTHALF EARNINGS DROP PERSHARE NET FOR 1993 IS LIKELY TO FALL BELOW LAST YEAR'S 60 CENTS MR TWOMLEY SAID HE DOESN'T CONTEST ANALYSTS' ESTIMATES OF 53 CENTS TO 55 CENTS A SHARE THOSE ESTIMATES ASSUME STRONG ACCEPTANCE OF THE COMPANY'S NEW MEAT ALTERNATIVES AND A REFRIGERATED EGG SUBSTITUTE WILL SHARPLY BOOST SALES THE COMPANY PREVIOUSLY OFFERED ONLY FROZEN EGG SUBSTITUTES ANALYSTS EXPECT SALES THIS YEAR TO EXCEED 83 MILLION AND TO TOP 90 MILLION IN 1994 UP FROM LAST YEAR'S 765 MILLION A YEAR EARLIER SOME ANALYSTS WERE PROJECTING FASTER SALES AND EARNINGS GROWTH BUT CONSUMERS UNEXPECTEDLY SLOWED PURCHASES OF EGG SUBSTITUTES A BIG PRODUCT FOR WORTHINGTON PERSHARE EARNINGS COMPARISONS FOR 1993 ARE AFFECTED BY AN INITIAL PUBLIC STOCK OFFERING IN APRIL 1992 THE AVERAGE NUMBER OF SHARES OUTSTANDING IN 1993 ROSE TO NEARLY 51 MILLION FROM 43 MILLION IN THE 1992 FIRST HALF AND 47 MILLION FOR ALL OF 1992 SOME ANALYSTS EXPECT NET INCOME THIS YEAR TO APPROXIMATE THE 28 MILLION OF 1992 WORTHINGTON WAS FOUNDED TO PRODUCE VEGETARIAN FOODS FOR MEMBERS OF THE SEVENTHDAY ADVENTIST CHURCH ADVENTISTS STILL ACCOUNT FOR ABOUT ONETHIRD OF SALES HOWEVER THE COMPANY'S GROWTH IS MAINLY FROM SUPERMARKET SALES OF MEAT AND EGG SUBSTITUTES TO PEOPLE INTERESTED IN A HEALTHIER DIET MORNINGSTAR FARMS BRANDED PRODUCTS SOLD MAINLY THROUGH SUPERMARKETS ACCOUNT FOR 55 OF WORTHINGTON'S SALES SPLIT NEARLY EVENLY BETWEEN MEAT AND EGG SUBSTITUTES SOME AMERICANS ARE LESS CONCERNED ABOUT HEALTHY DIETS THAN THEY WERE A YEAR OR SO AGO MR TWOMLEY SAID HOWEVER SURVEYS SHOW THAT 35 DO SOMETHING EACH DAY TO IMPROVE THEIR HEALTH HE SAID AND THAT'S A HUGE MARKET VEGETARIAN PRODUCTS CONTAIN NO CHOLESTEROL HOWEVER MANY OF WORTHINGTON'S EARLIER PRODUCTS CONTAINED A LOT OF VEGETABLE OIL RECENTLY HEALTH EXPERTS AND CONSUMERS HAVE LOOKED BEYOND CHOLESTEROL TO THE TOTAL FAT CONTENT OF FOODS WORTHINGTON RESPONDED BY WHACKING THE FAT CONTENT OF ITS HAMBURGER SUBSTITUTE GRILLERS 42 MR TWOMLEY SAID FAT WAS REDUCED 20 TO 30 IN ITS BREAKFAST LINKS AND PATTIES WHICH SUBSTITUTE FOR PORK SAUSAGE THE COMPANY'S EGG SUBSTITUTES NOW ARE FATFREE MR TWOMLEY SAID IN JULY THE FIRST MONTH WHEN THE LOWERFAT MEAT SUBSTITUTES WERE WIDELY AVAILABLE RETAIL SALES OF WORTHINGTON'S MEAT ALTERNATIVES ROSE NEARLY 12 FROM A YEAR EARLIER MR TWOMLEY SAID PROBABLY TWOTHIRDS OF SUPERMARKETS OFFERED THE REFORMULATED AND REPACKAGED PRODUCTS THAT MONTH HE SAID BUT NEARLY ALL WILL DO SO WITHIN A FEW WEEKS IN ADDITION WORTHINGTON HAS BEGUN SELLING FOUR NEW LOWFAT MEAT SUBSTITUTES A HOT DOG SUBSTITUTE A GARDEN VEGETABLE PATTY A CHICKEN PATTY SUBSTITUTE AND A HAMBURGER REPLACEMENT THAT IS COOKED WITH HOT AIR TO GIVE IT EVEN LOWER FAT THAN THE NEW GRILLERS 9308160094 930816 TECHNOLOGY AT&T'S EO SUBSIDIARY TO MERGE WITH GO CORP AMERICAN TELEPHONE & TELEGRAPH CO SAID ITS MAJORITYOWNED EO INC WOULD MERGE WITH GO CORP IN A BID TO HASTEN DEVELOPMENT OF PERSONAL COMMUNICATIONS DEVICES THE MOVE CEMENTS AN EXISTING AFFILIATION OF THE THREE COMPANIES AND SIGNALS NEW YORKBASED AT&T'S DETERMINATION TO BE A KEY PLAYER IN EMERGING COMPUTERBASED MULTIMEDIA TECHNOLOGY EO TOOK AN EARLY LEAD IN THE RACE TO POPULARIZE PERSONAL COMMUNICATORS WHICH SERVE AS PORTABLE OFFICES IN ENABLING USERS TO SEND FAXES ELECTRONIC MAIL AND COMPUTER DATA AND MAKE PHONE CALLS BUT AFTER SEVERAL MONTHS ON THE MARKET SALES OF ITS MACHINE EQUIPPED WITH GO'S PENBASED OPERATING SOFTWARE HAVE BEEN RELATIVELY LOW IN PART BECAUSE IT COSTS 3000 FULLY LOADED A FEW WEEKS AGO RIVAL APPLE COMPUTER INC INTRODUCED A COMPETING PRODUCT KNOWN AS THE NEWTON WHICH RETAILS FOR ABOUT 1500 INCLUDING A COMMUNICATIONS MODEM AND OTHER FEATURES WORK ON NEW VERSIONS OF EO'S MACHINE WILL BE CONSOLIDATED AT ITS MOUNTAIN VIEW CALIF FACILITIES GO BASED IN FOSTER CITY CALIF WILL CEASE TO EXIST GO PRESIDENT BILL CAMPBELL WILL JOIN EO'S BOARD ALAIN ROSSMAN WILL REMAIN EO'S PRESIDENT AND CHIEF EXECUTIVE OFFICER BOTH GO AND EO ARE CLOSELY HELD AND TERMS OF THE MERGER WERE NOT DISCLOSED 9308160093 930816 FIELDCREST TO BUY ITS LARGEST HOLDER AMOSKEAG ENDING EFFORTS FOR CONTROL BY NIKHIL DEOGUN STAFF REPORTER OF THE WALL STREET JOURNAL FIELDCREST CANNON INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE ITS LARGEST SHAREHOLDER AMOSKEAG CO FOR 1376 MILLION ENDING SEVEN MONTHS OF MANEUVERS FOR CONTROL OF FIELDCREST UNDER THE AGREEMENT FIELDCREST A TOWEL AND BEDDING COMPANY SAID IT WILL MAKE A CASH TENDER OFFER OF 40 A SHARE FOR AMOSKEAG'S ROUGHLY 34 MILLION SHARES AMOSKEAG IN TURN HOLDS ABOUT 30 OF FIELDCREST'S CAPITAL STOCK AND ABOUT 81 OF THE VOTING STOCK IN JANUARY AMOSKEAG WHICH IS BASED IN BOSTON AND ALSO HAS REAL ESTATE AND RAILROAD INTERESTS SAID IT WAS CONSIDERING SELLING ITS FIELDCREST STOCK THE PURCHASE OF THE STAKE BY FIELDCREST BASED IN EDEN NC THREW COLD WATER ON MONTHS OF TAKEOVER SPECULATION SINCE THIS SPRING FIELDCREST HAS HAD AT LEAST TWO COMPANIES EMERGE TO TRY TO GAIN CONTROL OF IT IN MAY SPRINGS INDUSTRIES INC A TEXTILE MAKER BASED IN FORT MILL SC OFFERED TO ACQUIRE BOTH FIELDCREST AND AMOSKEAG FOR 345 MILLION IN CASH AND STOCK AND LAST MONTH BIBB CO A TEXTILE COMPANY BASED IN MACON GA SAID IT HAD MADE AN OFFER FOR A CONTROLLING INTEREST IN FIELDCREST THE CIRCLING OF POTENTIAL SUITORS HAS BUOYED FIELDCREST'S STOCK BUT FOLLOWING FIELDCREST'S DISCLOSURE FRIDAY ITS STOCK PRICE PLUMMETED SUGGESTING TO INDUSTRY ANALYSTS THAT TAKEOVER PROSPECTS HAD DIMINISHED IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE FIELDCREST COMMON SHARES CLOSED AT 2150 DOWN 250 OR 104 ALSO ON THE BIG BOARD SPRINGS SHARES CLOSED AT 35 UNCHANGED IN NATIONAL OVERTHECOUNTER TRADING AMOSKEAG SHARES CLOSED AT 3950 DOWN 50 CENTS FIELDCREST OFFICIALS DIDN'T RETURN PHONE CALLS IN A STATEMENT THE COMPANY SAID THE AMOSKEAG PURCHASE WOULD SIMPLIFY THE OWNERSHIP STUCTURE OF FIELDCREST AND ENHANCE THE LONGTERM INTERESTS OF ITS SHAREHOLDERS AMOSKEAG SAID IT WOULD COOPERATE FULLY TO COMPLETE THE SALE BIBB OFFICIALS COULDN'T BE REACHED SPRINGS MEANWHILE SAID IT WAS NATURALLY DISAPPOINTED THAT THE FIELDCREST BOARD HAS CHOSEN NOT TO RESPOND TO OUR OFFER TO ACQUIRE FIELDCREST THE SPRINGS OFFER AMOUNTED TO 35 A SHARE FOR AMOSKEAG AND 2750 A SHARE IN CASH AND CLASS A STOCK FOR EACH SHARE OF FIELDCREST AT THE TIME OF THAT PROPOSAL IN MAY FIELDCREST REACTED COOLLY SAYING IT WOULD REVIEW IT BUT WAS NOT FOR SALE HOWEVER FIELDCREST'S LONGTERM INDEPENDENCE ISN'T A CERTAINTY SOME ANALYSTS SAID GIVEN SPRINGS'S INTEREST IN BECOMING A BIG PLAYER IN THE TOWEL BUSINESS KAY C NORWOOD AN ANALYST AT INTERSTATE/JOHNSON LANE SAID I DON'T THINK SPRINGS WILL ROLL OVER AND PLAY DEAD AND SOME ANALYSTS THINK FIELDCREST MAY YET COME UNDER PRESSURE FROM SHAREHOLDERS OVER ITS DECISION TO BUY OUT AMOSKEAG FRIDAY'S STOCK TRADING PUSHED FIELDCREST'S SHARES STILL FURTHER BELOW THE SPRINGS OFFER NOTED MS NORWOOD THIS LEAVES THE PUBLIC SHAREHOLDERS OUT IN THE COLD SHE SAID 9308160092 930816 INTERNATIONAL CHINA TARGETS SPECULATION IN REAL ESTATE WITH EDICT SPECIAL TO THE WALL STREET JOURNAL BEIJING THE CHINESE GOVERNMENT SAID IT WILL LIMIT CONSTRUCTION OF LUXURY HOUSING AND HOTELS BAN NEW GOLF COURSES AND FORCE INVESTORS TO DEVELOP LAND THEY LEASE TO COOL OFF SPECULATION IN REAL ESTATE SOME CONSTRUCTION PROJECTS ALREADY IN PROGRESS WILL BE HALTED AND OTHERS WILL BE CONVERTED FROM LUXURY USES TO ORDINARY HOUSING OR SHOPS THE OFFICIAL XINHUA NEWS AGENCY SAID THE EDICT ONE OF A NUMBER OF RECENT ACTIONS TO COOL THE COUNTRY'S OVERHEATED ECONOMY IS LIKELY TO SEND PRICES PLUMMETING ON COASTAL CHINA'S BOOMING REALESTATE MARKET SINCE ALL LAND IS OWNED BY THE GOVERNMENT IT IS LAND USE RIGHTS THAT ARE BOUGHT AND SOLD USUALLY FOR SEVERAL DECADES THE ORDER ISSUED JOINTLY FRIDAY BY FOUR GOVERNMENT MINISTRIES AND BUREAUS WILL PROHIBIT BUYERS OF LANDUSE RIGHTS FROM RESELLING UNTIL THEY HAVE MADE AT LEAST ONEFIFTH OF THE PROMISED INVESTMENT IN THE LAND'S DEVELOPMENT XINHUA SAID THE ORDER ALSO CALLS FOR PROVINCIAL GOVERNMENTS TO INVESTIGATE LOCAL LAND DEVELOPERS AND PUNISH ANY FOUND TO BE ENGAGED IN PURELY SPECULATIVE ACTIVITY OR CHEATING ON THEIR TAXES 9308160091 930816 INVESTORS TO WATCH AUCTION OF STOCK BY FERRUZZI UNIT BY JACQUELINE M DOHERTY SPECIAL TO THE WALL STREET JOURNAL NEW YORK SOME INVESTORS WILL BE CLOSELY WATCHING FERRUZZI FINANCE USA INC'S DUTCH AUCTION OF 50 MILLION OF PREFERRED STOCK WEDNESDAY AFTER AN AUCTION OF ANOTHER 50 MILLION OF THE COMPANY'S PREFERRED FAILED LAST WEEK IN DUTCH AUCTIONS FOR PREFERRED SHARES THE DIVIDEND RATES ARE ADJUSTED PERIODICALLY THROUGH BIDDING FOR THE SECURITIES LAST TUESDAY'S AUCTION OF FERRUZZI PREFERRED DREW INSUFFICIENT BIDS INVESTORS WHO PURCHASED THE SECURITIES IN THE MOST RECENT AUCTION 49 DAYS EARLIER ARE STUCK WITH THEM AT LEAST FOR NOW THESE SHORTTERM INVESTORS TYPICALLY CORPORATE MONEY MANAGERS MAY END UP HOLDING A LONGTERM SECURITY IT ISN'T NEW FOR A DUTCH AUCTION TO FAIL ESPECIALLY WHEN A COMPANY'S CREDIT DETERIORATES BUT THE FERRUZZI AUCTION'S FAILURE IS SURPRISING INVESTMENT BANKERS SAY BECAUSE THE PREFERRED STOCK IS SECURED BY A LETTER OF CREDIT FROM BANQUE NATIONALE DE PARIS THIS BOOSTS THE STOCK'S CREDIT RATING TO DOUBLEA2 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEA BY STANDARD & POOR'S CORP WITHOUT THE LETTER OF CREDIT THE UNIT PROBABLY COULDN'T HAVE ISSUED THE PREFERRED BECAUSE THE RATING WOULDN'T HAVE BEEN ADEQUATE ACCORDING TO INVESTMENT BANKERS AFTER TUESDAY WALL STREET OBSERVERS WERE LEFT WONDERING WHETHER THERE WAS A LOOPHOLE IN THE STRUCTURE OF THE DEAL OR THE LETTER OF CREDIT FERRUZZI OFFICIALS DIDN'T RETURN CALLS OFFICIALS AT KIDDER PEABODY & CO WHICH WAS THE AUCTION AGENT DECLINED TO COMMENT ON WHY THE FIRM DIDN'T OFFER TO BUY THE SHARES TO ENSURE THE DEAL'S SUCCESS FERRUZZI FINANCE USA IS A UNIT OF ITALY'S FERRUZZI FINANZIARIA SPA A CHEMICAL AND AGRIBUSINESS CONGLOMERATE RECENT NEWS FROM THE PARENT COMPANY LIKELY HAS CAUSED CONCERN AMONG INVESTORS THE PARENT HAD LARGE LOSSES FOR THE FIRST FIVE MONTHS OF THIS YEAR AND ANNOUNCED THAT IT WOULD WRITE DOWN ITS SHARE CAPITAL BY 85 FERRUZZI HAS BEEN THE OBJECT OF A JUDICIAL INVESTIGATION WHICH HAS RAISED ALLEGATIONS THAT INCLUDE FINANCIAL IRREGULARITIES FALSIFICATION OF COMPANY BALANCE SHEETS MASSIVE BRIBES TO POLITICIANS AND SOPHISTICATED OFFSHORE ACCOUNTING MANEUVERS TO COVER LOSSES BUT IN THIS CASE THE PARENT'S PROBLEMS SHOULDN'T AFFECT THE CREDIT STANDING OF PREFERRED SOLD BY THE US UNIT INVESTMENT BANKERSSAY THE UNIT IS A SUBSIDIARY SET UP EXCLUSIVELY TO SELL THE PREFERRED AND MANAGE ITS ASSETS FERRUZZI FINANCE USA HAS TWO PRIVATELY PLACED 50 MILLION PREFERRED STOCK TRANCHES OUTSTANDING FROM 1988 THE PROCEEDS WERE USED TO MAKE LOANS TO COMPANY AFFILIATES BACKED BY THE LETTER OF CREDIT FROM BNP INVESTMENT BANKERS SAID THE INCOME GENERATED BY THE LOANS SERVICES THE PREFERRED DIVIDEND PAYMENTS IF AFFILIATES WERE TO DEFAULT ON THE LOANS CAUSING THE US UNIT TO MISS PREFERRED DIVIDEND PAYMENTS THE LETTER OF CREDIT WOULD REQUIRE BNP TO PAY DOWN THE PREFERRED 9308160090 930816 TECHNOLOGY WANG LABS TO EMERGE FROM CHAPTER 11 WITH STRONG BALANCE SHEET CHIEF SAYS BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL LOWELL MASS WANG LABORATORIES INC WILL EMERGE FROM CHAPTER 11 NEXT MONTH WITH ONE OF THE STRONGEST BALANCE SHEETS IN THE COMPUTER INDUSTRY JOSEPH TUCCI PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN HIS FIRST EXTENDED COMMENTS ON WANG'S FUTURE THE IMPROVED BALANCE SHEET REFLECTS THE CONVERSION OF 451 MILLION OF UNSECURED LONGTERM DEBT TO EQUITY AND 60 MILLION IN NEW INVESTMENT WANG WILL EMERGE WITH A DEBTTOCAPITAL RATIO OF JUST 8 WELL UNDER THE 27 AVERAGE FOR COMPUTERSOFTWARE CONCERNS IT WILL HAVE ABOUT 200 MILLION IN CASH AND MARKETABLE SECURITIES EQUAL TO 20 OF ASSETS AND DOUBLE THE AVERAGE FOR COMPUTERHARDWARE CONCERNS IT WILL HAVE JUST 3 MILLION IN LONGTERM DEBT EXISTING SHAREHOLDERS WILL RECEIVE WARRANTS VALUED AT ONLY A FEW PENNIES WANG SAID WANG WHICH ONCE BOASTED 3 BILLION IN ANNUAL SALES AND 31500 EMPLOYEES MISSED THE PERSONAL COMPUTER AND OPENSYSTEM REVOLUTIONS AND FELL ON HARD TIMES FILING FOR BANKRUPTCYCOURT PROTECTION AUG 18 1992 MANY OBSERVERS THEN QUESTIONED WHETHER IT WOULD EVER EMERGE BUT MR TUCCI SAID WANG NOW HAS THE FINANCIAL STRUCTURE AND THE PRODUCT STRATEGY TO BE SUCCESSFUL THOUGH AS A MUCH SMALLER COMPANY THAN IN THE PAST MR TUCCI SAID ABOUT HALF OF THAT REVENUE WILL COME FROM PROVIDING SERVICE FOR THE THOUSANDS OF BUSINESS AND GOVERNMENT CUSTOMERS WHO STILL USE WANG EQUIPMENT ANOTHER 20 WILL COME FROM SALES OF WANG BRAND VS HARDWARE AND SECURE TEMPEST COMPUTERS MOSTLY TO EXISTING CUSTOMERS EXPANDING THEIR SYSTEMS MR TUCCI SAID WANG'S GROWTH BUSINESSES WILL INVOLVE ITS SOFTWARE TO MANAGE ELECTRONIC DOCUMENTS AND IMAGES AND CONSULTING SERVICES TO HELP CUSTOMERS INSTALL AND USE OTHER COMPANIES' SOFTWARE FOR GROUPS HE SAID THAT IT IS FINALIZING AN AGREEMENT TO BECOME A SELLER OF LOTUS DEVELOPMENT CORP'S NOTES SOFTWARE AND IS ALSO WORKING CLOSELY WITH MICROSOFT CORP TO DEVELOP WAYS TO SELL THE POWERFUL NT OPERATING SYSTEM TO WANG CUSTOMERS IT'S ALL OFFICE GROUPWARE HE SAID WE'LL OFFER EVERY RELATED SERVICE AND THOSE MARKETS WILL ALL GROW 20 A YEAR THROUGH 2000 IF WE FOCUS RIGHT IN THAT MARKET WE'LL BE SUCCESSFUL HE SAID WANG'S OWN PRODUCTS FOR THAT MARKET INCLUDE AN ELECTRONIC MAIL PACKAGE EARLY NEXT YEAR IT PLANS TO START SELLING A NEW SOFTWARE PACKAGE FOR CONTROLLING WORKFLOW IN OFFICES WANG WAS ONE OF THE FIRST COMPANIES TO MARKET ELECTRONICIMAGING PRODUCTS THAT SCAN PAPERWORK AND STORE IT ELECTRONICALLY HOWEVER CONSULTANTS SAY COMPETITORS HAVE CAUGHT UP WITH WANG THERE ARE A LOT OF GUYS IN IMAGING SAID AMY WOHL AN OFFICE AUTOMATION CONSULTANT IN BALA CYNWYD PA BUT THE PROBLEM ISN'T JUST PRODUCT EVEN IF THEY HAVE A VERY GOOD PRODUCT IT WOULD BE DIFFICULT TO ESTABLISH THEY HAVE A LOT OF NEGATIVE IMAGES TO OVERCOME WANG'S NEW STRUCTURE IS A SHARP DEPARTURE FROM ITS HISTORIC GROUNDING AS A MAKER OF COMPUTER HARDWARE IN THE LAST YEAR MR TUCCI SAID WANG HAS ELIMINATED ALL ITS MANUFACTURING OPERATIONS EXCEPT ASSEMBLY OF ITS VS COMPUTERS CUTTING MANUFACTURING EMPLOYMENT TO 100 FROM 2000 A YEAR AGO AND 9000 FIVE YEARS AGO BY BREAKING LEASES UNDER CHAPTER 11 IT HAS CUT REALESTATE COSTS TO 58 MILLION A YEAR FROM 175 MILLION A YEAR TOTAL EMPLOYMENT IS ABOUT 6000 DOWN FROM 13000 AT THE TIME OF THE FILING MR TUCCI SAID THAT 98 TO 99 OF THE BUSINESS WANG GETS IS WITH EXISTING CUSTOMERS WHO LIKE WANG'S PRODUCTS AND FIND SWITCHING TO COMPETITORS IS EXPENSIVE AND TIMECONSUMING WE STILL HAVE A TAINTED REPUTATION AS WE EMERGE ND OUR FINANCIAL VIABILITY GETS KNOWN WE'LL GET MORE BUSINESS FROM NEW CUSTOMERS HE SAID HOWARD ANDERSON PRESIDENT OF YANKEE GROUP A BOSTON MARKET ANALYST SAID CUSTOMERS ARE VERY RELUCTANT TO GO TO WANG IT'S A CAREERLIMITING ACT EVEN AFTER EMERGING FROM CHAPTER 11 HE PREDICTS THEY'LL NEVER GET BACK THE FULL CONFIDENCE OF CUSTOMERS IT'S A SHAME BECAUSE THEY'VE GOT GOOD PRODUCTS IMPROVED FINANCES SHOULD HELP ITS GOVERNMENT BUSINESS WHERE PERFORMANCE BONDS ARE OFTEN REQUIRED MR TUCCI SAID THAT DURING THE PAST YEAR WANG COULDN'T BID ON SOME CONTRACTS BECAUSE OF SUCH REQUIREMENTS HE SAID THAT WANG CONTINUES TO NEGOTIATE FOR A 30 MILLION LINE OF CREDIT WITH CONGRESS FINANCIAL GROUP OF LOS ANGELES THAT WILL BE USED MOSTLY FOR SUCH BONDS SINCE IT'S TO BE USED ONLY WHEN REQUIRED IT'S OFF THE BALANCE SHEET MR TUCCI SAID MR TUCCI DISCLOSED THAT UNDER ITS AGREEMENT TO SELL 60 MILLION OF A NEW ISSUE OF 12 PREFERRED STOCK TO STEINHARDT MANAGEMENT CO OF NEW YORK WANG WON'T PAY CASH DIVIDENDS FOR THE FIRST THREE YEARS BUT CAN MAKE STOCK DIVIDENDS AS PAYMENTSINKIND OVERALL WANG WILL HAVE ABOUT 22 MILLION IN SHORTTERM DEBT WHEN IT EMERGES HE SAID IT WILL HAVE TOTAL EQUITY OF 306 MILLION A COMPANY NEGOTIATING TO LEND MONEY TO WANG LABORATORIES INC IS CONGRESS FINANCIAL CORP A SUBSIDIARY OF CORESTATES FINANCIAL CORP PHILADELPHIA THE LENDER'S NAME WAS INCORRECTLY GIVEN AS CONGRESS FINANCIAL GROUP IN AN ARTICLE YESTERDAY 9308160089 930816 AT LEAST HE DIDN'T USE HIS TIME STUDYING TO BECOME AN ATTORNEY BY JENNIFER CODY STAFF REPORTER OF THE WALL STREET JOURNAL FOR AN EXECUTIVE WITH EVERYTHING INCLUDING FIVE TO 10 YEARS IN THE SLAMMER AUTHOR TRACY HUMBLE HAS JUST THE THING HIS BOOK FEDERAL PRISON WHERE INMATES STAY AND CONVICTS RUN THE TOME IS A SORT OF DIDITTOYOURSELF BOOK INDEED MR HUMBLE DID HIS OWN RESEARCH EIGHT MONTHS IN A TEXARKANA TEXAS FEDERAL PRISON FOR MORTGAGELENDING VIOLATIONS A PERSON CAN GO ALONG AND NOT REALIZE THEY CROSSED THAT LINE MR HUMBLE SAYS FROM THE WHITECOLLAR STANDPOINT ONE DAY YOU ARE IN NEW YORK AND ONE DAY YOU ARE IN PRISON MR HUMBLE FOUND HIMSELF ILLPREPARED FOR HIS PRISON STAY AND FIGURES HIS BOOK COULD EASE THE PAIN FOR OTHERS IT INCLUDES CONVICT SLANG WITH HANDY TRANSLATIONS FROM A&O ADMISSIONS AND ORIENTATION WHERE MUCH IS LEFT UNSAID TO WOLF TICKETS HYPERBOLE SPOKEN TO ENHANCE ONCE'S IMAGE AND IT PROVIDES A FEW WARNINGS SETTING FIRES FOR INSTANCE CAN LEAD TO DISCIPLINARY SEGREGATION THERE'S ALSO PRICING DATA FOR A TYPICAL COMMISSARY AND PROFILES OF PREFERRED JAILHOUSE JOBS POWER TOOLS AND A PATCH OF GRASS CAN PROVIDE A CERTAIN MONASTIC PEACE MR HUMBLE ALSO SCATTERS METAPHYSICAL MUSINGS JACKSON POLLOCKLIKE THROUGH THE BOOK WHY ARE WE HERE IN THIS LIFE ON THIS EARTH WHAT'S THE POINT WHAT'S THE PURPOSE HOW DID IT GET SCREWED UP HE SAYS HE WANTED TO THROW ENOUGH ON THE WALL SO THAT A PERSON WHO HAS TIME CAN PULL SOMETHING OUT THAT'S USEFUL CRITICS ARE GUARDED IN THEIR OPINIONS RANDY LOWTHER EXECUTIVE ASSISTANT TO THE WARDEN AT THE TEXARKANA FEDERAL CORRECTIONAL FACILITY CONCEDES THE BOOK MAY BE WORTHWHILE FROM AN INMATE'S POINT OF VIEW BUT A FEDERAL BUREAU OF PRISONS SPOKESMAN NOTES THAT A MERE 1 OF THE POPULATION IN PRISON IS THERE FOR WHITECOLLAR OFFENSES IT'S A VERY SMALL GROUP STANLEY ARKIN A NEW YORK DEFENSE LAWYER SAYS THE BOOK MAY INDEED HELP TO EASE THE TERROR FELT BY PEOPLE GOING IN BUT HE WARNS THAT JAIL IS NOT JAIL IS NOT JAIL EVERY JAIL IS DIFFERENT AT 1495 THE SELFPUBLISHED BOOK IS A BARGAIN WHEN YOU CONSIDER HOW MUCH YOU SPEND ON AN ATTORNEY TO STAY OUT MR HUMBLE SAYS HE ALSO ENVISIONS A SERIES OF NOVELS SAMPLE PLOT BANK EXECUTIVES DEVISE A PLAN TO CHEAT REALESTATE CUSTOMERS WHILE AVOIDING PROSECUTION WITH THE HELP OF THEIR POLITICAL FRIENDS THEY ALSO MIGHT WANT TO KEEP THEIR LIBRARY CARDS UP TO DATE 9308160088 930816 MARKETING & MEDIA PHILIPS MEDIA PLANS REORGANIZATION TO CONSOLIDATE ITS GLOBAL PROPERTIES BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PHILIPS MEDIA THE RECENTLY FORMED ELECTRONIC SOFTWARE AND MEDIA GROUP OF PHILIPS ELECTRONICS NV IS EXPECTED TO ANNOUNCE TODAY A GLOBAL REORGANIZATION OF ITS PROPERTIES TO CREATE AND DISTRIBUTE NEW DIGITAL ELECTRONIC MEDIA FOR A VARIETY OF FORMATS WITH THE REORGANIZATION PHILIPS THE ELECTRONICS GIANT BASED IN EINDHOVEN NETHERLANDS WILL NOW COMPETE HEADON WITH OTHER COMPANIES SUCH AS SONY CORP THAT HAVE ESTABLISHED ELECTRONICPUBLISHING DIVISIONS TO CREATE EDUCATIONAL AND ENTERTAINMENT PROPERTIES FOR USE IN EVERYTHING FROM VIDEOGAME MACHINES TO FUTURISTIC INTERACTIVE ELECTRONIC HIGHWAYS THE REORGANIZATION CONSOLIDATES A NUMBER OF GLOBAL PHILIPS PROPERTIES AND OPERATIONS UNDER SCOTT C MARDEN THE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NEW YORKBASED PHILIPS MEDIA MR MARDEN 39 YEARS OLD A FORMER SENIOR MANAGING DIRECTOR RESPONSIBLE FOR MEDIA AND ENTERTAINMENT INVESTMENT BANKING AT BEAR STEARNS & CO WAS HIRED LAST MARCH TO HEAD THE NEWLY FORMED PHILIPS SOFTWARE & SERVICES NOW KNOWN AS PHILIPS MEDIA THE UNIT OVERSEES PHILIPS'S EUROPEAN CABLE SYSTEMS ITS COMPACTDISC INTERACTIVE OR CDI PLAYER THE SUPER CLUB MUSICSTORE CHAINS IN EUROPE AND THE US EQUITY STAKES IN WHITTLE COMMUNICATIONS LP AND BLOCKBUSTER ENTERTAINMENT CORP AND PARTICIPATION IN THE GENERAL MAGIC INC ALLIANCE A SILICON VALLEY STARTUP WORKING ON A STANDARD FOR WIRELESS COMMUNICATORS PHILIPS MEDIA DOESN'T INCLUDE POLYGRAM NV THE LONDONBASED RECORD AND FILM COMPANY OF WHICH PHILIPS CURRENTLY OWNS ABOUT 80 PHILIPS ELECTRONICS WHICH HAS ANNUAL REVENUE OF NEARLY 32 BILLION HASN'T DISCLOSED THE SIZE OF ITS GROWING MEDIA BUSINESS BUT HAS SAID THAT BUSINESS WOULD RANK AMONG THE TOP 30 MEDIA COMPANIES WORLDWIDE IN TERMS OF REVENUE THE CHANGES INCLUDE THE CREATION OF A NEW UNIT PHILIPS MEDIA ELECTRONIC PUBLISHING WHICH WILL PRODUCE AND LICENSE INTERACTIVE AND OTHER ELECTRONIC SOFTWARE FOR PHILIPS'S OWN CDI PLAYER FORMAT AS WELL AS FOR A VARIETY OF DIGITAL FORMATS CURRENTLY AVAILABLE AND UNDER DEVELOPMENT MR MARDEN SAID HE HAS CREATED SIX INDIVIDUAL LABELS WITHIN THE GROUP TO CREATE INTERACTIVE FARE FOR ADULTS TEENAGERS AND KIDS THE DIVISION ALSO WILL WORK WITH EDUCATIONAL BOOK PUBLISHERS TO CREATE INTERACTIVE MEDIA FOR SCHOOLS AND WILL BUILD ON ITS PREVIOUSLY ANNOUNCED PLANS TO PUT FEATURE FILMS FROM PARAMOUNT COMMUNICATIONS INC AND POTENTIALLY OTHER HOLLYWOOD STUDIOS ON THE CDI FORMAT THE REORGANIZATION WILL ALSO GIVE PHILIPS MEDIA GREATER CONTROL OF THE MARKETING OF CDI HARDWARE AND SOFTWARE THIS ALLOWS US TO BE MORE RESPONSIVE IN AREAS SUCH AS CONSUMER BEHAVIOR AND PREFERENCES MR MARDEN SAID SOME RETAILERS HAVE SAID CDI PLAYERS WHICH PLAY MULTIMEDIA PROGRAMS ON HOME TELEVISION SETS AREN'T SELLING WELL MR MARDEN SAID WHILE PHILIPS MEDIA WANTS TO BE PLATFORMFREE IN THE CREATION OF SOFTWARE PHILIPS FULLY BACKS CDI IN COMING MONTHS PHILIPS MEDIA IS LIKELY TO EXERCISE ITS EXISTING OPTION TO INCREASE ITS STAKE IN WHITTLE TO 33 FROM 25 PHILIPS MEDIA IS ALSO RUMORED TO BE SELLING OFF THE NEARLY 630 SUPER CLUB STORES IN THE US WHICH GO UNDER THE NAMES RECORD BAR TRACKS AND TURTLE'S AMONG OTHERS MR MARDEN WOULDN'T COMMENT ON EITHER WHITTLE OR SUPER CLUBS 9308160087 930816 EXECUTIVE LIFE'S BAILOUT NEARS THE END AS COURT APPROVES TRANSFER OF POLICIES BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES A CALIFORNIA STATE COURT FORMALLY APPROVED THE TRANSFER OF FAILED EXECUTIVE LIFE INSURANCE CO'S MORE THAN 7 BILLION IN UNDERWRITING TO A NEW FRENCHCONTROLLED COMPANY THE PLAN WHICH FACES ALMOST CERTAIN LEGAL APPEALS TENTATIVELY RESOLVES THE NATION'S SECONDLARGEST INSURANCE INSOLVENCY IN A CASE THAT CAME TO SYMBOLIZE MISDIRECTED INVESTMENTS AND RAPID GROWTH IN THE LIFE INSURANCE INDUSTRY CALIFORNIA INSURANCE COMMISSIONER JOHN GARAMENDI HAILED THE MOVE WHICH HE SAID WILL GIVE THE OVERWHELMING MAJORITY OF EXECUTIVE LIFE'S POLICYHOLDERS A FULL AND COMPLETE RECOVERY ORDERS SIGNED FRIDAY HERE BY SUPERIOR COURT JUDGE KURT J LEWIN SET IN MOTION A PLAN THAT PROPONENTS SAY WILL PAY AS MUCH AS 86 CENTS ON THE DOLLAR TO ALL OF EXECUTIVE LIFE'S 340000 POLICYHOLDERS HOWEVER VARIOUS POLICYHOLDERS COULD ACTUALLY RECOVER FAR SMALLER PROPORTIONS DEPENDING ON HOW RETURNS ARE CALCULATED AND THE TYPE OF POLICY HELD ABOUT 92 OF HOLDERS WILL GET A TOTAL OF 100 CENTS ON THE DOLLAR WITH ADDITIONAL PAYMENTS BY INDUSTRYFUNDED STATE GUARANTY FUNDS PAYMENTS THAT WILL COST THE NATION'S LIFE INSURERS NEARLY 2 BILLION BECAUSE MANY OF EXECUTIVE LIFE'S POLICIES ARE BIGGER THAN THE LIMITS OF STATE GUARANTY FUNDS THE COVERAGE ONLY EXTENDS TO ABOUT THREEQUARTERS OF ALL OF EXECUTIVE LIFE'S CONVENTIONAL INSURANCE LIABILITIES JUDGE LEWIN'S ORDERS WILL BE STAYED THROUGH SEPT 1 PERMITTING ALMOSTCERTAIN APPEALS BY TRUSTEES FOR MUNICIPAL BONDS BACKED BY EXECUTIVE LIFE SOCALLED MUNIGICS A FORM OF GUARANTEED INVESTMENT CONTRACTS TRUSTEES FOR ABOUT 165 BILLION OF THESE BONDS ARE EXPECTED TO ASK THE CALIFORNIA COURT OF APPEALS TO OVERTURN THE PLAN A REQUEST THAT MAY DELAY THE PLAN INDEFINITELY THE STRUCTURE APPROVED FRIDAY CALLS FOR THE TRANSFER OF MOST EXECUTIVE LIFE ASSETS AND LIABILITIES TO AURORA NATIONAL LIFE ASSURANCE CO A NEW COMPANY OWNED TWOTHIRDS BY A FRENCH INVESTOR GROUP LEAD BY MUTUELLE ASSURANCE ARTISANALE DE FRANCE AND ONETHIRD BY SUNAMERICA INC BASED IN LOS ANGELES THE OWNERS ARE TO INVEST 300 MILLION IN CAPITAL IN AURORA AS PAYMENT FOR THE TRANSFER WHICH WOULD BE DONE THROUGH A SOCALLED ASSUMPTION REINSURANCE TRANSACTION FOR THE MOMENT JUDGE LEWIN'S ORDERS CLOSE A TORTUOUS 2 1/2YEAR CHAPTER THAT BEGAN IN APRIL 1991 WHEN CALIFORNIA REGULATORS SEIZED JUNK BONDLADEN EXECUTIVE LIFE NEW YORK REGULATORS AT THE SAME TIME TOOK OVER SMALLER EXECUTIVE LIFE INSURANCE CO OF NEW YORK WHICH REMAINS UNDER STATE CONTROL BOTH COMPANIES WERE UNITS OF FIRST EXECUTIVE CORP WHICH IS BASED IN LOS ANGELES AND ENTERED CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS EXECUTIVE LIFE BECAME A NATIONAL BELLWETHER AS IT TEETERED AND THEN FELL SOON AFTER ITS SEIZURE OTHER LARGE LIFE INSURERS SOON AFTER FAILED OR FLIRTED WITH FAILURE AS MARKETS FOR HIGHRISK BONDS AND REAL ESTATE POPULAR ASSETS IN THE 1980S PLUNGED IN THE 1990S FRIDAY'S ACTION IN CALIFORNIA FOLLOWED A NEW JERSEY COURT'S APPROVAL ON THURSDAY OF A REHABILITATION PLAN FOR MUTUAL BENEFIT LIFE INSURANCE CO THE LARGEST EVER US LIFE INSURANCE INSOLVENCY MUTUAL BENEFIT WAS TAKEN OVER BY NEW JERSEY REGULATORS TWO YEARS AGO AS ITS HUGE REAL ESTATE PORTFOLIO FOUNDERED THE COMPANY WITH 700000 POLICYHOLDERS HAS LIABILITIES OF NEARLY 11 BILLION AND ASSETS ESTIMATED AT ABOUT 88 BILLION THAT PLAN TOO IS SUBJECT TO COURT APPEALS IN EXECUTIVE LIFE'S DEMISE DESPITE INDUSTRY AND STATE REGULATORS' CONTENTIONS THAT POLICYHOLDERS WOULD EMERGE ALMOST UNSCATHED THAT HASN'T BEEN THE CASE ACCOUNTINGS VARY BUT AT THE TIME OF ITS SEIZURE EXECUTIVE LIFE HAD MORE THAN 10 BILLION IN LIABILITIES OWED TO POLICYHOLDERS AND BOND TRUSTEES AND WHAT APPEARS TO HAVE BEEN ABOUT 7 BILLION IN ASSETS TO MEET THOSE LIABILITIES SINCE THEN DURING STATE CONSERVATORSHIP AND AS PART OF THE PROPOSED PLAN BENEFITS TO POLICYHOLDERS HAVE BEEN SHARPLY REDUCED AND TERMS OF CONTRACTS REVISED INSURANCE COMMISSIONER GARAMENDI'S INITIAL REHABILITATION PLAN WHICH WOULD EFFECTIVELY HAVE ELIMINATED NEARLY 2 BILLION OF MUNIGIC CLAIMS WAS DECLARED ILLEGAL SUBSEQUENTLY COURTS ALSO DECLARED ILLEGAL TERMS THAT ATTEMPTED TO REDUCE RECOVERIES FOR CERTAIN MUNIGIC HOLDERS AND CUT RETURNS FOR CONVENTIONAL POLICYHOLDERS WHO DECIDED TO CASH IN RATHER THAN RETAIN POLICIES WITH AURORA NATIONAL THE NEW COMPANY JUDGE LEWIN'S FINAL 40PAGE DECISION IN THE EXECUTIVE LIFE CASE WRAPPING UP YEARS OF CONTENTIOUS AND OFTEN ANGRY LITIGATION IN HIS COURT APPLAUDED BROAD SUPPORT FOR THE PLAN AS INDEPENDENT EVIDENCE THAT IT IS FAIR AND EQUITABLE THE DOCUMENT ALSO FORCEFULLY REJECTED ARGUMENTS BY THE MUNIGIC TRUSTEES THAT A 325 BILLION SALE OF THE INSURER'S HIGHYIELD PORTFOLIO TO ALTUS FINANCE A UNIT OF CREDIT LYONNAIS WAS ILLEGAL AND SHOULD BE RESCINDED LAWYERS FOR THE TRUSTEES MAINTAINED THAT THE MARCH 1992 SALE AGREED TO NEAR THE BOTTOM OF THE JUNK BOND MARKET WOULD BRING AS MUCH AS 15 BILLION MORE IF EXECUTED TODAY IT APPEARS HOWEVER THAT THE 40PAGE DECISION AND ORDERS THOUGH SIGNED BY JUDGE LEWIN WEREN'T WRITTEN BY HIM THE DOCUMENT WAS DRAFTED BY LAWYERS FOR INSURANCE COMMISSIONER GARAMENDI AURORA AND OTHER PROPONENTS OF THE PLAN AND SUBMITTED AS A PROPOSED DECISION ON THE RECORD SEVERAL WEEKS AGO AT THE TIME IT SEEMED UNLIKELY THAT THE PROPOSAL WOULD BE ADOPTED IN ITS ENTIRETY ROUTINE ORDERS ARE COMMONLY DRAFTED BY LAWYERS FOR OPPOSING PARTIES IN COURT BUT THE USE OF A DETAILED DRAFT PREPARED BY ONE SIDE INCLUDING OUTDATED FOOTNOTES AS THE FINAL WORD IN AN ADVERSARIAL AND VERY PUBLIC PROCEEDING IS UNUSUAL THERE WASN'T SO MUCH AS A COMMA CHANGED SAID PHILIP WARDEN A LAWYER REPRESENTING TRUSTEES FOR MOST OF THE MUNIGICS KARL RUBINSTEIN SPECIAL COUNSEL TO INSURANCE COMMISSIONER GARAMENDI SAID THAT ALL SIDES HAD EQUAL OPPORTUNITY TO SUBMIT SUCH DRAFTS WHAT WE DRAFTED WAS BASED ON COMMENTS THAT JUDGE LEWIN MADE AND TENTATIVE RULINGS WE DRAFTED WHAT WE THOUGHT HE WOULD GO ALONG WITH JUDGE LEWIN COULDN'T BE REACHED FOR COMMENT OVER THE WEEKEND 9308160086 930816 BUSINESS BRIEF BERKSHIRE HATHAWAY POSTS 14 PROFIT RISE FOR SECOND QUARTER OMAHA NEB BERKSHIRE HATHAWAY INC REPORTED A 14 PROFIT GAIN FOR ITS SECOND QUARTER WHICH IT ATTRIBUTED TO LOWER UNDERWRITING LOSSES IN ITS PROPERTY AND CASUALTY INSURANCE BUSINESSES THE COMPANY WHICH HOLDS LARGE INVESTMENTS IN A NUMBER OF DIFFERENT BUSINESSES SAID NET INCOME ROSE TO 112 MILLION OR 9714 A SHARE FROM 98 MILLION OR 8552 A SHARE A YEAR EARLIER BERKSHIRE SAID INSURANCE LOSSES WERE 11 MILLION LESS THAN A YEAR AGO AND WERE 21 MILLION LOWER IN THIS YEAR'S FIRST HALF EARNINGS FROM OPERATIONS ALSO BENEFITED FROM A REDUCTION IN INTEREST EXPENSE OF 35 MILLION IN THE QUARTER AND 15 MILLION FOR THE HALF IT SAID NEVERTHELESS FOR THE HALF BERKSHIRE POSTED A 14 EARNINGS DROP TO 1417 MILLION OR 12296 A SHARE FROM 1655 MILLION OR 14434 A SHARE A YEAR EARLIER THE COMPANY SAID ITS EARNINGS WERE HURT BY A 71 MILLION CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE BERKSHIRE HATHAWAY SAID IT EXPECTS TO RECORD A 75 MILLION CHARGE TO ITS THIRDQUARTER EARNINGS TO REFLECT THE INCREASE IN THE FEDERAL CORPORATE INCOME TAX TO 35 FROM 34 BERKSHIRE HATHAWAY SHARES CLOSED UNCHANGED AT 16350 FRIDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9308160085 930816 FARM AGENCY PLANS TO PROPOSE CHANGES FOR CROP INSURANCE WASHINGTON THE AGRICULTURE DEPARTMENT IS PREPARING PROPOSALS TO BOOST FARMER PARTICIPATION IN THE FEDERAL CROP INSURANCE PROGRAM AND IMPROVE THE FINANCIAL HEALTH OF THE INSURANCE SYSTEM TOM AMONTREE A SPOKESMAN FOR AGRICULTURE SECRETARY MIKE ESPY SAID IN AN INTERVIEW THAT THE SECRETARY WANTS A QUALITY PROGRAM THAT ENCOURAGES INCREASED PARTICIPATION WITH BROAD COVERAGE AT THE SAME TIME HE SAID WE WANT TO MAKE SURE THE PROGRAM IS ACTUARIALLY SOUND THE LATEST PUSH TO REVISE THE SYSTEM COMES IN RESPONSE TO THE DEVASTATING FLOODS OF THE MIDWEST CROP LOSSES FROM THE FLOODING AND FROM THE DROUGHT IN THE SOUTHEAST ARE ESTIMATED AT 25 BILLION IN ADDITION THE NEW DEFICITREDUCTION LAW REQUIRES THE FEDERAL CROP INSURANCE CORP TO TAKE A VARIETY OF STEPS TO REDUCE LOSSES IN THE PROGRAM THESE MOVES ARE TO INCLUDE REQUIRING PARTICIPANTS TO PROVIDE ACTUAL PRODUCTIONHISTORY RECORDS AND CREATING A NATIONWIDE DATABASE TO TRACK PARTICIPATION BY SOCIAL SECURITY NUMBERS THE PROGRAM HAS BEEN CRITICIZED FOR FAILING TO PROVIDE BENEFITS TO FARMERS WHO ARE UNABLE TO PLANT CROPS BECAUSE OF A DISASTER ALSO SOME FARMERS ARE RELUCTANT TO BUY INSURANCE REASONING THAT THE GOVERNMENT WILL BAIL THEM OUT EVEN IF THEY DON'T HAVE COVERAGE THE AGRICULTURE DEPARTMENT ESTIMATES THAT ONLY ONETHIRD OF ELIGIBLE FARMERS CURRENTLY PARTICIPATE THIS WEEK PRESIDENT CLINTON SIGNED A 57 BILLION AID PACKAGE FOR PEOPLE HURT BY THE FLOODING WE'RE TRYING TO BRING SOME DISCIPLINE TO DISASTER POLICY SO IT'S NOT SO AD HOC MR AMONTREE SAID SECRETARY ESPY HELD A DISCUSSION ON CROP INSURANCE LAST MONTH WITH REPRESENTATIVES FROM FARM AND COMMODITY GROUPS CROPINSURANCE AGENTS CONGRESSIONAL STAFF MEMBERS AND BANKS FOLLOWING THAT SESSION A GROUP OF AGRICULTURE DEPARTMENT OFFICIALS HAVE BEEN WORKING ON RECOMMENDATIONS MR ESPY MET WITH THE GROUP THIS WEEK THOUGH OFFICIALS SAID THEY HAVEN'T SET A DATE FOR SENDING A PROPOSAL TO CONGRESS 9308160084 930816 POLITICS & POLICY COMMUNICATION GURU GERGEN WORKS HIS ALCHEMY ON CLINTON TO IMPROVE CHEMISTRY WITH THE PRESS BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN TELEVISIONS ACROSS THE US LAST MONTH SHOWED BILL CLINTON PEERING THROUGH BINOCULARS AT THE KOREAN DEMILITARIZED ZONE AND SPEAKING OF THE FRONTIER OF FREEDOM SOME VIEWERS MAY HAVE FELT A TINGE OF DEJA VU THE SCENE FAITHFULLY TRACKED ONE TELEVISED 10 YEARS EARLIER WHEN ANOTHER COMMANDER IN CHIEF RONALD REAGAN VISITED THE SAME BORDER AND SPOKE OF THE FRONT LINES OF FREEDOM THE BLURRING OF PRESIDENTIAL CHOREOGRAPHY IS NO COINCIDENCE DAVID GERGEN DIRECTED COMMUNICATIONS FOR MR REAGAN 10 YEARS AGO HELPING RUN ONE OF THE MOST SUCCESSFUL STAGEMANAGEMENTS OF MODERN POLITICS NOW MR GERGEN WHO ALSO SERVED PRESIDENTS FORD AND NIXON IS LABORING TO LIFT BILL CLINTON'S PRESIDENCY FROM THE LOWRATED SITCOM IT SEEMED TO HAVE BECOME JUST BEFORE THE EDITOR AND POLITICAL COMMENTATOR RETURNED TO THE WHITE HOUSE IN JUNE SINCE MR GERGEN BECAME MR CLINTON'S COUNSELOR AND COMMUNICATIONS GURU TWO MONTHS AGO THERE ARE MORE IMAGES OF AUTHORITY AND RESOLVE FEWER PICTURES OF VACILLATION AND INDECISION HUMAN CHEMISTRY A CENTRAL GERGEN PRIORITY SEEMS TO HAVE IMPROVED WITH THE PRESS INCREASINGLY MR CLINTON IS FILLING THE AIRWAVES WITH MESSAGES CHOSEN IN THE WHITE HOUSE THEREBY LEAVING FEWER OPPORTUNITIES FOR BOB DOLE OR ROSS PEROT TO JUMP INTO THE VOID THE ALCHEMY SEEMS TO BE WORKING ACCORDING TO A WALL STREET JOURNAL/NBC NEWS POLL 54 OF THOSE SURVEYED IN JULY VIEW MR CLINTON AS A DIFFERENT KIND OF DEMOCRAT UP FROM 47 IN A PREGERGEN SURVEY THE PREVIOUS MONTH IN THE SAME PERIOD THOSE VIEWING MR CLINTON AS A TAXANDSPEND DEMOCRAT DROPPED TO 38 FROM 42 OF COURSE THE IMPROVED RATINGS COULD EVAPORATE IF THERE'S A NEW PRESIDENTIAL STUMBLE OR SETBACK EVEN MR REAGAN'S PUBLICRELATIONS TRIUMPHS FADED DURING HIS SECOND TERM AND AFTER HE LEFT THE WHITE HOUSE BUT FEW DOUBT THAT MR CLINTON'S MOVE TO REACH OUTSIDE PARTY LINES AND BRING IN A SEASONED WASHINGTON INSIDER HAS PAID OFF FOR HIS PART THE 51YEAROLD MR GERGEN THRIVES ON THE WASHINGTON CHESS GAME THAT OTHERS FIND BOGGLING AND BRUTAL IT'S LIKE GEORGE PATTON WHEN HE LOOKS OUT AT THE BATTLEFIELD CARNAGE AND SAYS I LOVE IT GOD HELP ME I DO LOVE IT SO' THAT'S DAVE GERGEN SAYS KEN KHACHIGIAN WHO WORKED WITH HIM IN BOTH THE NIXON AND REAGAN WHITE HOUSES MR GERGEN DIDN'T HAVE TO DO MUCH MORE THAN SHOW UP AT THE WHITE HOUSE TO CREATE THE IMPRESSION THAT HIS BOSS WAS RECOVERING FROM THE SPRING'S FIASCO OVER BOSNIA A HUMILIATING SENATE DEFEAT ON HIS ECONOMIC STIMULUS PACKAGE AND A BUNGLED STRING OF APPOINTMENTS INDEED MR CLINTON'S RECRUITMENT OF MR GERGEN ALONE SEEMED TO CONVINCE MANY IN WASHINGTON THAT THE PRESIDENT FINALLY WAS SETTLING DOWN TO DO BUSINESS WITH THE POWER STRUCTURE HE HAD SEEMED TO BE AT ODDS WITH ON HIS FIRST DAY ON THE JOB MR GERGEN FOUND THE WHITE HOUSE MIRED IN THE LATEST CRISIS OF VACILLATION THE BATTERED NOMINATION OF LANI GUINIER FOR THE TOP CIVIL RIGHTS POST IN THE JUSTICE DEPARTMENT MR GERGEN'S ADVICE TO THE PRESIDENT WAS STRAIGHTFORWARD DECIDE SOMETHING HE ADDED THIS CAVEAT IF YOU FIGHT FOR HER MAKE SURE IT IS A FIGHT YOU BELIEVE IN BY EVENING MS GUINIER WAS CUT LOOSE MR GERGEN'S ARRIVAL RELIEVED AN OVERBURDENED GEORGE STEPHANOPOULOS WHO WAS RUNNING THE COMMUNICATIONS OFFICE BRIEFING THE PRESS AND PLOTTING STRATEGY MORE IMPORTANT MR STEPHANOPOULOS WAS NOT PART OF THE WASHINGTON POWER SET THE HEAVYWEIGHTS OF POLITICS MEDIA AND INTEREST GROUPS WHO SET CONVENTIONAL WISDOM WHEN MR STEPHANOPOULOS COULDN'T STOP THE BAD PUBLICITY STEMMING FROM MR CLINTON'S MISTAKES HE WAS YANKED AS THE CHIEF SPOKESMAN BY CONTRAST MR GERGEN WASN'T ONLY RESPECTED BY THE ELITE HE WAS ONE OF THEM MR GERGEN NOW FORMS A TROIKA WITH MR STEPHANOPOULOS AND CHIEF OF STAFF THOMAS MACK MCLARTY MR STEPHANOPOULOS NOW WORKS AS THE BODY MAN STICKING CLOSE TO MR CLINTON IN ONE MEETING AFTER ANOTHER MAKING SURE HE SEES TO THE MYRIAD POLITICAL TASKS NEEDED TO KEEP HIS PROGRAMS AFLOAT IN THE CLOSING HOURS OF THE CLIFFHANGER BUDGET DEAL MR STEPHANOPOULOS HELPED DRAW UP A LIST OF FENCESITTING LAWMAKERS FOR MR CLINTON TO CALL PERSONALLY AND AS THE PRESIDENT MADE THE CALLS MR STEPHANOPOULOS KEPT A TALLY OF WHAT THE VARIOUS LAWMAKERS SOUGHT IN RETURN FOR SUPPORTING THE BILL FOR HIS PART MR GERGEN WAS THE LINK TO SENS DANIEL PATRICK MOYNIHAN CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND ROBERT KERREY THE NEBRASKA DEMOCRAT WHOSE VOTE FOR THE BILL FINALLY SECURED THE WHITE HOUSE ITS NARROW VICTORY MR GERGEN SET UP A CRUCIAL LUNCH WITH MR KERREY ONE DAY BEFORE THE VOTE AND HE HELPED RECRUIT SEN MOYNIHAN'S WIFE A FRIEND OF MR KERREY'S TO LOBBY HIM WITHIN THE WASHINGTON FRAY MR GERGEN EXUDES A BLEND OF DECENCY AND PRAGMATISM ONE STAUNCHLY HELD GERGEN BELIEF IS THAT A PRESIDENT SHOULD SPEND TIME WITH ADVERSARIES SUCH OVERTURES MIGHT CAUSE A FOE TO BLINK AT A CRITICAL MOMENT AND IN THE MEANTIME IT CONVEYS STATESMANLIKE QUALITIES THOUGH FEW HAVE CAUSED MORE TROUBLE FOR PRESIDENT CLINTON'S AGENDA THAN SEN ROBERT DOLE MR GERGEN LAST MONTH MANAGED TO ARRANGE A DINNER BETWEEN THE PRESIDENT AND THE REPUBLICAN LEADER LATER HE MADE SURE THAT MR DOLE'S WIFE ELIZABETH WHO HEADS THE RED CROSS WAS INVITED TO A MEETING THE PRESIDENT HELD IN ST LOUIS TO DISCUSS GOVERNMENT HELP FOR FLOODRAVAGED COMMUNITIES WORKING BEHIND THE SCENES MR GERGEN ALSO PLAYED A ROLE IN WHAT'S REGARDED AS ONE OF MR CLINTON'S MOSTPRAISED APPOINTMENTS RUTH BADER GINSBURG AS A SUPREME COURT JUSTICE ON THE FRIDAY BEFORE THE MONDAY SELECTION SEN MOYNIHAN PHONED MR GERGEN TO RELAY HOW FORMER SOICITOR GENERAL ERWIN GRISWOLD HAD PRAISED JUDGE GINSBURG IN A SPEECH COMPARING HER WORK FOR WOMEN'S RIGHTS TO THURGOOD MARSHALL'S FOR BLACKS' LATER THAT EVENING AS A FRUSTRATED MR CLINTON MET WITH AIDES TO DISCUSS PROBLEMS BEDEVILING OTHER CANDIDATES MR GERGEN PASSED ON SEN MOYNIHAN'S MESSAGE ON SATURDAY MR GERGEN GAVE MR CLINTON A COPY OF THE GRISWOLD SPEECH TWO DAYS LATER THE PRESIDENT ANNOUNCED SHE WAS HIS NOMINEE ESSENTIALLY MR GERGEN'S JOB IS TO EXPLAIN WASHINGTON TO MR CLINTON AND EXPLAIN MR CLINTON TO WASHINGTON HE CARRIES ON A RUNNING DIALOGUE WITH THE PEOPLE WHO SET THE CONVENTIONAL WISDOM IN WASHINGTON PILING UP 54 TELEPHONE MESSAGES ON A RECENT DAY 23 FROM THE MEDIA THIS TOWN WORKS AN EXTRAORDINARY DEGREE ON HUMAN CHEMISTRY WHO YOU KNOW WHO YOU TRUST MR GERGEN SAYS IF YOU DON'T GET THAT YOU DON'T UNDERSTAND HOW THIS TOWN WORKS BY PROVIDING NUGGETS OF INFORMATION ALONG WITH AN INTERPRETIVE SPIN MR GERGEN HELPS SHAPE PERCEPTIONS HE KNOWS HOW TO PRESENT THE PRESIDENCY SAYS JOHN SASSO A DEMOCRATIC STRATEGIST HE KNOWS THAT IT IS STRENGTH AND COMMITMENT THAT PEOPLE ALWAYS LOOK FOR SOON AFTER ARRIVING MR GERGEN WAS STRUCK THAT THE ARKANSAS DEMOCRAT HAD BECOME A MIRROR IMAGE OF GEORGE BUSH MR BUSH ENJOYED CONSIDERABLE GOODWILL EARLY IN HIS PRESIDENCY BUT FOR LACK OF NERVE OR IDEAS DIDN'T DRAW ON IT BY CONTRAST MR CLINTON WITH ONLY 43 OF THE VOTE HAD AN AMBITIOUS AGENDA IF PRESIDENT CLINTON SETTLED FOR A STATUS QUO PRESIDENCY SAYS MR GERGEN THE COUNTRY WOULD HAVE SUFFERED BUT HIS POLITICAL WAYS WOULD HAVE IMPROVED PART OF THE PROBLEM IS ONE THAT'S VEXED EVERY POSTWAR PRESIDENT AND BEEN EXPLORED AT LENGTH BY PRESIDENTIAL SCHOLAR RICHARD NEUSTADT EXPECTATIONS FOR THE PRESIDENCY HAVE RISEN SINCE FRANKLIN ROOSEVELT BUT THE POWER OF THE OVAL OFFICE HAS DWINDLED MR GERGEN'S REMEDY APPLIED IN THE REAGAN PRESIDENCY IS FOR THE PRESIDENT TO BUILD PUBLIC SUPPORT TO GAIN LEVERAGE WITH CONGRESS MEANWHILE MR GERGEN DEALS WITH COUNTLESS BRUSH FIRES AND COMMUNICATIONS SNARLS IN KOREA FOR INSTANCE RUMORS SPREAD THAT DEFENSE SECRETARY LES ASPIN WAS TRAVELING WITH A NEW COMPROMISE ON HOMOSEXUALS IN THE MILITARY AIDES FRETTED THAT THIS CONTROVERSY WOULD DOMINATE THE PRESIDENT'S NEWS CONFERENCE ECLIPSING IMAGES OF MR CLINTON AS COMMANDER INCHIEF IN A HOSTILE CORNER OF THE WORLD MR GERGEN HELD A BRIEFING TO TELL REPORTERS THAT MR ASPIN DIDN'T HAVE THE REPORT AT THE NEWS CONFERENCE THERE WERE NO QUESTIONS ON GAYS IN THE MILITARY WELLTIMED DAMAGE CONTROL IS CENTRAL AFTER LEARNING WORD THAT HOUSE MEMBERS WERE REBELLING BECAUSE THE WHITE HOUSE HAD BACKED AWAY FROM THE BTU TAX THE HOUSE HAD PASSED MR GERGEN ARRANGED FOR BUDGET DIRECTOR LEON PANETTA TO GIVE AN EVENING BRIEFING SO THE ADMINISTRATION COULD PUT ITS STAMP ON THE STORIES AMONG THE WHITE HOUSE STAFF MR GERGEN'S ADVICE STANDS SECOND ONLY TO VICE PRESIDENT AL GORE'S AVOIDING INTERNECINE RIVALRIES MR GERGEN WORKS AT FITTING IN AND AVOIDS LORDING HIS CLOUT OVER OTHER AIDES WORKING FROM A SMALL OFFICE IN THE WHITE HOUSE BASEMENT IT USED TO BE A BARBERSHOP HE REVELS IN BEHINDTHESCENES POWER YOU ARE ALMOST BETTER OFF PLAYING AN ANTIPOWER GAME HE SAYS STILL A FEW CLINTON AIDES BRISTLE AT HIS WAYS HIS LOYALTY WAS QUESTIONED LAST MONTH WHEN HE FLEW TO CHICAGO ON AIR FORCE ONE WITH THE PRESIDENT THEN TOOK AN EARLY COMMERCIAL FLIGHT HOME TO AVOID ATTENDING A DEMOCRATIC FUNDRAISER AND EYEBROWS WERE RAISED WHEN HE ASKED TO SIT AT THE CABINET TABLE DURING A SUBCABINETLEVEL POLICY MEETING BUT MOST WOULD CONCEDE THAT HE WOULD BE OUT OF PLACE IN THE BACK ROW WHERE HE STARTED OUT MORE THAN 20 YEARS AGO 9308160083 930816 BUSINESS BRIEF CHOICE DRUG SYSTEMS INC INTERNAL INVESTIGATION FINDS IMPROPER MEDICARE CLAIMS CHOICE DRUG SYSTEMS INC INWOOD NY SAID IT DISCOVERED IN AN INTERNAL INVESTIGATION THAT A COMPANY OFFICIAL SIGNED CERTAIN MEDICARE REIMBURSEMENT CLAIMS WITHOUT PROPER AUTHORIZATION THE COMPANY SAID ITS INQUIRY STEMMED FROM AN INVESTIGATION BEING CONDUCTED BY THE US ATTORNEY'S OFFICE IN THE EASTERN DISTRICT OF PENNSYLVANIA CHOICE DRUG DECLINED TO NAME THE OFFICIAL WHO IT SAID HAS BEEN SUSPENDED WITHOUT PAY THE COMPANY SAID IT TURNED THE INFORMATION FROM ITS OWN PROBE OVER TO GOVERNMENT AUTHORITIES THE COMPANY SAID THE OFFICIAL'S ACTIONS WEREN'T KNOWN OR AUTHORIZED BY ANY SENIOR EXECUTIVES OR BY THE BOARD CHOICE SAID IT WILL CONTINUE TO COOPERATE WITH AUTHORITIES AND CONTINUE ITS OWN INTERNAL INVESTIGATION 9308160082 930816 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED SEVEN NEW LISTINGS SIX OF THEM INITIAL PUBLIC OFFERINGS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED 19 NEW LISTINGS INCLUDING 14 INITIAL PUBLIC OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED ONE NEW LISTING THE BIG BOARD SAID IT BEGAN TRADING SHARES IN THE FOLLOWING INITIAL PUBLIC OFFERINGS BORGWARNER AUTOMOTIVE INC CHICAGO A MAKER OF COMPONENTS FOR POWER TRAIN APPLICATIONS UNDER BWA CROWN AMERICAN REALTY TRUST JOHNSTOWN PA A REAL ESTATE INVESTMENT TRUST UNDER CWN EQUITY RESIDENTIAL PROPERTIES TRUST CHICAGO AN EQUITY REAL ESTATE INVESTMENT TRUST UNDER EQR SOUTHERN PACIFIC RAIL CORP SAN FRANCISCO A RAILROAD CONCERN UNDER RSP WOLVERINE TUBE INC DECATUR ALA UNDER WLV NATIONAL GOLF PROPERTIES INC SANTA MONICA CALIF A SELFADMINISTERED REAL INVESTMENT TRUST UNDER TEE THE BIG BOARD ALSO BEGAN TRADING CALIFORNIA ENERGY CO OMAHA NEB AN EXPLORATION AND DEVELOPMENT CONCERN RELATED TO GEOTHERMAL POWER UNDER CE IT FORMERLY TRADED ON THE AMERICAN STOCK EXCHANGE FOLLOWING INITIAL PUBLIC OFFERINGS TO ITS NASDAQ NATIONAL MARKET ARBOR HEALTH CARE CO LIMA OHIO A HEALTH CARE CONCERN UNDER AMCC DUAL DRILLING INC DALLAS AN OFFSHORE DRILLING CONTRACTOR UNDER DUAL MONARCH CASINO & RESORT INC RENO NEVADA OWNER AND OPERATOR OF THE CALRION HOTEL CASINO UNDER MCRI RFS HOTEL INVESTORS INC MEMPHIS TENN AN ACQUIRER OF EQUITY INTERESTS IN HOTELS UNDER RFSI AETRIUM INC NORTH ST PAUL MINN A MAKER OF ELECTROMECHANICAL HANDLING EQUIPMENT FOR PACKAGED INTEGRATED CIRCUIT SEMICONDUCTOR DEVICES UNDER ATRM DAVCO RESTAURANTS INC CROFTON MD AN OPERATOR OF WENDY'S OLD FASHIONED HAMBURGERS RESTAURANTS UNDER DVCO COMMON SHARES AND WARRANTS OF INNODATA CORP BROOKLYN NEW YORK A DATA ENTRY SCANNING AND RELATED SERVICES CONCERN UNDER INOD & INODW COMMON SHARES AND WARRANTS OF CASINO & CREDIT SERVICES INC CONSHOHOCKEN PA A PROVIDER OF CREDIT AND RELATED SERVICES TO THE CASINO INDUSTRY UNDER CACS & CACSW CENCALL COMMUNICATIONS CORP DENVER AN OPERATOR OF MOBILE WIRELESS COMMUNICATION THE FOLLOWING COMPANIES PREVIOUSLY TRADED ON THE NASDAQ SMALLCAP MARKET AND HAVE BEEN APPROVED FOR LISTING ON THE NATIONAL MARKET SYSTEM LAUREL BANCORP INC LAUREL MD A SAVINGS BANK UNDER LAUR WHOLESOME & HEARTY FOODS INC PORTLAND ORE A DEVELOPER OF FROZEN MEATLESS BURGERS AND RELATED PRODUCTS UNDER WHFI CLASS A SHARES OF FAHNESTOCK VINER HOLDINGS INC TORONTO A FINANCIAL SERVICES COMPANY UNDER FAHNF HEI INC VICTORIA MINN A MAKER OF CUSTOM MICROELECTRONICS AND LIGHT PENS UNDER HEII ALSO AIR METHODS CORP ENGLEWOOD COLO A PROVIDER OF AEROMEDICAL EMERGENCY SERVICES BEGAN TRADING ON THE NATIONAL MARKET SYSTEM UNDER AIRM THE COMPANY PREVIOUSLY TRADED ON THE AMERICAN STOCK EXCHANGE THE AMERICAN STOCK EXCHANGE BEGAN TRADING SHARES IN CYCOMM INTERNATIONAL INC VANCOUVER UNDER CYI THE COMPANY ALSO TRADES ON THE ALBERTA STOCK EXCHANGE IN CALGARY CANADA THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS ON BOLT BERANEK & NEWMAN INC AND KULICKE & SOFFA INDUSTRIES INC 9308160080 930816 INTERNATIONAL BRIEF UNILEVER NV SECONDPERIOD NET ROSE 39 ON 56 BOOST IN REVENUE ANGLODUTCH CONSUMER PRODUCTS GROUP UNILEVER NV SAID SECONDQUARTER NET INCOME ROSE 39 TO 588 MILLION FROM 586 MILLION AS SALES INCREASED 56 TO 1178 BILLION FROM 1116 BILLION DESPITE TOUGH COMPETITION AND SOFT EUROPEAN ECONOMIES THE COMPANY ALSO FORECAST LITTLE CHANGE IN BUSINESS TRENDS IN THE SECOND HALF THE RESULTS GENERALLY WERE IN LINE WITH ANALYSTS' EXPECTATIONS FLORIS A MALJERS THE DUTCH CHAIRMAN OF UNILEVER SAID THE COMPANY WAS ABLE TO MAINTAIN ITS OPERATING PROFIT MARGINS DESPITE INCREASED COSTS FOR MARKETING ITS PRODUCTS THE COMPANY WHICH HAS HEADQUARTERS IN BOTH ROTTERDAM AND LONDON PRODUCES A BROAD RANGE OF PRODUCTS FROM FOODS TO DETERGENTS PERSONALCARE PRODUCTS AND SPECIALTY CHEMICALS 9308160077 930816 BUSINESS BRIEFS PUBLIC SERVICE CO OF NEW MEXICO COMPLETED ITS SALE OF 50000 KILOWATTS OF GENERATING CAPACITY TO THE CITY OF ANAHEIM CALIF FOR 55 MILLION UNIVERSAL CORP SAID A UNIT COMPLETED THE PURCHASE OF A MAJORITY OF THE STOCK OF NYIDOFER TOBACCO PROCESSING CO A FORMERLY STATEOWNED LEAF TOBACCO COMPANY IN HUNGARY CALIFORNIA FEDERAL BANK INTENDS TO PURCHASE 180 MILLION IN DEPOSITS INCLUDING TWO BRANCHES FROM UNION FEDERAL BANK A UNIT OF UNIONFED FINANCIAL CORP BREA CALIF TERMS WEREN'T DISCLOSED BLOCKBUSTER ENTERTAINMENT CORP HAS COMPLETED ITS PREVIOUSLY ANNOUNCED MERGERS WITH WJB VIDEO LIMITED PARTNERSHIP AND UI VIDEO HOLDINGS INC ITS TWO LARGEST FRANCHISE OWNERS ACC CORP SAID ITS 70OWNED CANADIAN UNIT ACC TELENTERPRISES LTD HAS SIGNED TWO 10YEAR CONTRACTS TO PROVIDE LONGDISTANCE TELEPHONE SERVICES TO YORK UNIVERSITY NORTH YORK ONTARIO CANADA DEVELOPERS DIVERSIFIED REALTY CORP COMPLETED THE ACQUISITION OF FOUR SHOPPING CENTERS FOR 272 MILLION IN CASH AND SOME DEBT FROM CLOSELY HELD RG PROPERTIES INC DAYTON OHIO 9308160076 930816 BUSINESS BRIEF SAFEWAY INC SUPERMARKET CONCERN TO PAY 64 MILLION IN SETTLEMENT SAFEWAY INC AGREED TO PAY 64 MILLION TO SETTLE A CALIFORNIA GOVERNMENT INVESTIGATION INTO ITS PRACTICE OF SELLING GROUND BEEF THAT CONTAINED SCRAPS OF PORK AND OTHER MEATS THE SETTLEMENT WAS ANNOUNCED BY STATE ATTORNEY GENERAL DAN LUNGREN AFTER MISLABELED MEAT TURNED UP IN FIVE PAK 'N SAVE STORES IN NORTHERN CALIFORNIA PAK 'N SAVE IS A DISCOUNT CHAIN OPERATED BY SAFEWAY BASED IN OAKLAND CALIF MR LUNGREN SAID THERE WAS NO EVIDENCE THAT SAFEWAY MANAGEMENT WAS AWARE OF THE COMINGLING OF MEAT A SPOKESMAN FOR SAFEWAY WASN'T AVAILABLE TO COMMENT 9308160075 930816 LEISURE & ARTS TELEVISION A HIP HOP TALE OF THE STREETS BY ROB GOLDBERG BACK WHEN I WAS IN NINTH GRADE TARGET PRACTICE WASN'T ON THE CURRICULUM ALTHOUGH SOME OF THE KIDS WERE PRETTY HANDY WITH SPITBALLS BUT NOW ACCORDING TO A RECENT HARRIS POLL 62 OF HIGH SCHOOLERS KNOW JUST WHERE TO GET THEIR HANDS ON A NICE REVOLVER WHEN IT COMES TO YOUNG MEN AND CRIME I RAN ACROSS AN EVEN MORE STARTLING STATISTIC NOT TOO LONG AGO A YOUNG BLACK MALE GROWING UP IN THE INNER CITY IS MORE LIKELY TO GO TO PRISON THAN TO GRADUATE FROM COLLEGE STRAIGHT OFF THE STREETS COMES THE NEW DRAMA STRAPPED HBO SATURDAY 810 PM EDT WHICH IN THE VERNACULAR OF THE INNER CITY IS ANOTHER WAY OF SAYING PACKING HEAT THE DIRECTORIAL DEBUT OF ACTOR FOREST WHITAKER LAST SEEN IN THE CRYING GAME STRAPPED MOVES WITH ASSURANCE THROUGH BODEGAS AND PROJECTS AS IT TELLS THE STORY OF DIQUAN MITCHELL BOKEEM WOODBINE A TEENAGER WHO'S ATTEMPTING TO PLAY BY THE RULES IN A NEIGHBORHOOD WHERE THE RULES ARE HARD TO FIND WORKING AS A MESSENGER IN MANHATTAN DIQUAN IS TRYING TO SAVE MONEY FOR HIMSELF HIS GIRLFRIEND LATISHA KIA JOY GOODWIN AND THE CHILD SHE'S CARRYING HE'S ONLY PULLING DOWN THE MINIMUM WAGE BUT THAT'S ENOUGH AT LEAST UNTIL LATISHA GETS BUSTED ON A SMALLTIME DRUG CHARGE AND DIQUAN HAS TO COME UP WITH 2500 BAIL TO GET HIS PREGNANT GIRLFRIEND OUT OF JAIL UNABLE TO RAISE THE CASH DIQUAN RELUCTANTLY AGREES TO A DEAL HE'LL HELP UNDERCOVER COP LT MATT MCRAE MICHAEL BIEHN SET UP THE BUST OF A LOCAL GUN DEALER IN EXCHANGE FOR LATISHA'S FREEDOM BUT WHILE DIQUAN UPHOLDS HIS END OF THE BARGAIN THE DA DOESN'T IN FRUSTRATION DIQUAN TURNS TO HIS OLD FRIEND BAMBOO FREDRO WHO'S BUYING AND SELLING ILLEGAL WEAPONS ON THE STOOPS OF BROOKLYN AND SO WE ARE PLUNGED INTO THE WORLD OF 22S AND 38S OF UZIS GLOCKS AND SATURDAY NIGHT SPECIALS IN THIS WORLD KIDS FASHION THEMSELVES AS GANGSTAS HONOR AND BULLETS FREQUENTLY GET CONFUSED PURCHASING A WEAPON IS ALMOST A COMING OF AGE RITUAL AND GUNS ARE A GROWTH INDUSTRY STRAPPED IS AT ITS BEST SKETCHING OUT THE FORCES AT WORK IN THIS WORLD THE BRAVADO AND THE FEAR I GOTTA WATCH MY BACK SAYS ONE YOUNGSTER NOT EVEN A TEEN YET I DON'T WANT NOBODY CREEPIN' UP ON ME KNOW WHAT I'M SAYIN I GOTTA WATCH OUT FOR MYSELF BAMBOO AND BEN CRAIG WASSON THE WHITE SUBURBANITE WHO SUPPLIES HIM MAKE THEIR LIVING ON THIS FEAR YOU WANT TO WORK AT MICKEY D'S ALL YOUR LIFE MAKING 435 AN HOUR BAMBOO ASKS DIQUAN WHEN HE EXPRESSES DOUBTS ABOUT THE WISDOM OF SELLING A PISTOL TO A TENYEAROLD IF THEY DON'T GET THE GUNS FROM ME THEY GONNA GET EM FROM SOMEBODY ELSE I'D RATHER IT BE ME KNOW WHAT I'M SAYIN I WANT TO GET SOME OF THE LOOT TOO MY MOM SAID I WASN'T GONNA AMOUNT TO A DAMN THING NOW I'M BUYING THE TVS I'M BUYING THE RADIOS NOW I'M PAYING THE RENT AS DIQUAN GETS SUCKED INTO THIS ILLICIT TRADE AS HE GETS SQUEEZED BY AMORAL BUSINESS PARTNERS AND ALMOST EQUALLY AMORAL COPS AS HE TRIES TO STAY PURE IN A DIRTY PROFESSION TELLING HIMSELF IT'S ONLY FOR A SHORT TIME ONLY UNTIL HE CAN GATHER UP ENOUGH MONEY TO MOVE HIS YOUNG FAMILY OUT OF THE CITY THE STORY UNWINDS WITH A GRIM INEVITABILITY STRAPPED HAS THE SAME BLEAK OVERTONES OF COUNTLESS OTHER RECENT INNER CITY DRAMAS IT'S ONE OF MANY THAT SEEM TO COME RIGHT OUT OF THE BOYZ N THE HOOD MOLD AND SURE THERE ARE PLOT HOLES IN THE STORY LINE BIG ENOUGH TO SHOOT A BAZOOKA THROUGH ESPECIALLY THE SETUP OF DIQUAN'S FINAL CHOICE BUT WRITER DENA KLEINMAN HAS A SURPRISINGLY GOOD EAR FOR THE HIPHOP DIALECT OF THE STREETS MOST IMPORTANT STRAPPED PACKS A RAW JANGLED ENERGY AN IMPACT POWERFUL AND VISCERAL A KIND OF WHOOMP THERE IT IS TO QUOTE THE RECENT RAP TUNE NEWCOMER BOKEEM WOODBINE WITH HIS SHAVED HEAD AND CRACKED SMILE DELIVERS A COMPELLING PERFORMANCE AND THE STORY RUNS DOWN THE TRACKS LIKE A FREIGHT TRAIN WITH THE BRAKES OFF HURTLING TOWARD THE EXPLOSION AT THE END THAT'S BOUND TO COME IF STRAPPED IS HEAVYHANDED FROM TIME TO TIME THAT'S BECAUSE IT'S AS MUCH A POLEMIC AS A DRAMA THE MESSAGE IT CARRIES IS SOMBER AND URGENT I CAN'T BELIEVE HOW EASY THIS IS SAYS DIQUAN AS HE WALKS OUT OF A GUN STORE WITH AN ARMFUL OF NEW WEAPONS I DIDN'T KNOW I COULD POP A CAP THAT EASY EXCLAIMS A YOUNGSTER WHO'S JUST SHOT HIS FRIEND IN AN ARGUMENT OVER A GIRL AT A TIME WHEN CONGRESS AND THE NETWORKS ARE TALKING ABOUT VIOLENCE ON TELEVISION IN THE MOST NEBULOUS DONOTHING WAYS AT A TIME WHEN PROGRAMMERS ARE HARDPRESSED TO IMAGINE SCREEN EXCITEMENT EXCEPT AT THE POINT OF A GUN SHOTS EXPLOSIONS BLOOD AND DEATH IT'S ENCOURAGING TO SEE A PROGRAM THAT ATTACKS THE ROOT ISSUE HEAD ON THAT MEETS FORCE WITH FORCE THAT ACKNOWLEDGES THAT VIOLENCE HANDGUN VIOLENCE ESPECIALLY IS A PARTICULARLY AMERICAN DISEASE 9308160074 930816 VW HIRES AUDITOR TO PROBE LOPEZ CASE AS PROSECUTORS LOOK AT COMPUTER DATA BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL VOLKSWAGEN AG SCRAMBLING TO CONTAIN A PUBLICRELATIONS FIASCO HIRED AN INDEPENDENT AUDITOR TO INVESTIGATE THE CHARGES THAT FORMER GENERAL MOTORS CORP PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA BROUGHT CONFIDENTIAL GM DOCUMENTS WITH HIM WHEN HE DEFECTED TO VW THE MOVE CAME AS THE DARMSTADT GERMANY PROSECUTOR'S OFFICE CONFIRMED THAT THERE WILL BE AN INTENSIFIED EFFORT TO IDENTIFY AND QUESTION VW EMPLOYEES ABOUT THE POSSIBLE SYSTEMATIC ENTRY OF PROPRIETARY GM INFORMATION INTO VW COMPUTERS TODAY'S EDITION OF THE GERMAN MAGAZINE DER SPIEGEL IS EXPECTED TO CARRY A LENGTHY ACCOUNT ATTRIBUTED TO ANONYMOUS VW OFFICIALS OF HOW TEAMS OF WORKERS FED DATA FROM GM AND ADAM OPEL AG DOCUMENTS INTO VW COMPUTERS OPEL IS GM'S GERMAN SUBSIDIARY VW SAID ITS SUPERVISORY AND MANAGEMENT BOARDS DECIDED TO HIRE THE AUDITOR KPMG DEUTSCHE TREUHAND GESELLSCHAFT BECAUSE OF CONCERN FOR THE COMPANY IN LIGHT OF THE DAILY PUBLIC DEBATE ABOUT THE ALLEGATIONS GM HAS MADE A SUPERVISORY BOARD IS THE GERMAN CORPORATE EQUIVALENT OF A US BOARD OF DIRECTORS VW OFFICIALS SAID THEY BELIEVE THE INDEPENDENT PROBE WILL RESTORE VW'S CREDIBILITY IN THE PUBLIC EYE AND PUT TO REST THE ACCUSATIONS TARNISHING THE GERMAN CAR MAKER'S REPUTATION BUT IN AN UNUSUAL MOVE VW SUPERVISORY BOARD CHAIRMAN KLAUS LIESEN PLANS TO SET UP AN OFFICE AT VW HEADQUARTERS IN WOLFSBURG WITH THE OFFICIAL PURPOSE OF SUPPORTING THE MANAGEMENT BOARD IN THE HANDLING OF THE CRISIS INDIVIDUALS CLOSE TO THE COMPANY CONFIRMED MR LIESEN'S DECISION TO TAKE UP RESIDENCE AT VW HEADQUARTERS AND THE HIRING OF KPMG UNDERSCORE THE GROWING UNEASINESS AT THE BELEAGUERED AUTO GIANT AS EACH WEEK SEEMS TO BRING ANOTHER RETREAT FROM VW CHAIRMAN FERDINAND PIECH'S ORIGINAL STANCE THAT GM'S CHARGES OF INDUSTRIAL ESPIONAGE WERE TRUMPED UP IN REVENGE FOR MR LOPEZ'S SPECTACULAR DEFECTION TO VW LAST MARCH WITHIN A WEEK OF MR LOPEZ'S DEPARTURE HE AND OTHER VW OFFICIALS ASSURED GM IN WRITING THAT THEY HAD NO CONFIDENTIAL GM INFORMATION IN THEIR POSSESSION AND HADN'T TAKEN ANY GM DOCUMENTS WHEN MR LOPEZ AND HIS ALLIES LEFT GM FOR VW BUT TWO WEEKS AGO VW CONCEDED THAT MR LOPEZ AND SEVERAL ASSOCIATES DID HAVE POSSIBLY CONFIDENTIAL GM DOCUMENTS BUT DESTROYED THEM WITHOUT USING THEM TO BENEFIT VW A VW SPOKESMAN CONTACTED YESTERDAY REFUSED TO COMMENT ON THE NEW CHARGES OR THE DETAILS OF THE DER SPIEGEL ARTICLE SAYING ONLY THAT THE COMPANY NEEDS TO GET BACK TO ITS REAL PROBLEM OF BECOMING A COMPETITIVE CAR PRODUCER 9308160073 930816 BUSINESS BRIEF PEER REVIEW ANALYSIS INC CORE MANAGEMENT INC IS SET TO BE PURCHASED FOR STOCK PEER REVIEW ANALYSIS INC BOSTON SAID IT AGREED TO ACQUIRE CORE MANAGEMENT INC A CLOSELY HELD LOS ANGELESBASED COMPANY FOR STOCK PEER REVIEW SAID THAT AFTER THE ACQUISITION CORE HOLDERS WILL OWN ABOUT 45 OF THE COMBINED COMPANY'S STOCK BASED ON THE 28 MILLION COMMON SHARES REPORTED OUTSTANDING IN MAY THAT WOULD INDICATE ISSUANCE OF 2280000 NEW SHARES TO THE CORE HOLDERS PEER REVIEW PROVIDES HEALTHCARE UTILIZATION MANAGEMENT PROGRAMS FOR INSURERS AND CORPORATIONS CORE MANAGEMENT MANAGES DISABILITY PROGRAMS FOR WORKERS COMPENSATION PLANS AFTER THE MERGER CORE'S CHIEF EXECUTIVE OFFICER AND MAJOR SHAREHOLDER GEORGE CARPENTER 35 YEARS OLD WILL BE CHIEF EXECUTIVE OF THE COMBINED COMPANY ALFRED B LEWIS 37 PEER REVIEW'S PRESIDENT AND CHIEF EXECUTIVE WILL REMAIN RESPONSIBLE FOR PEER REVIEW'S OPERATIONS HEADQUARTERS WILL BE IN BOSTON 9308160072 930816 INTERNATIONAL WORLD WIRE COMPILED BY KRISHNAN M ANANTHARAMAN SINGAPORE PRIME MINISTER GOH CHOK TONG IN HIS ANNUAL NATIONAL DAY RALLY SPEECH UNVEILED A PROGRAM THAT OFFERS CASH TO POORLY EDUCATED SINGAPOREANS WHO AGREE TO HAVE NO MORE THAN TWO CHILDREN FAMILIES WITH ONE OR TWO CHILDREN IN WHICH BOTH PARENTS HAVE LESS THAN SECONDARYSCHOOL EDUCATION AND EARN LESS THAN ABOUT 465 A MONTH WILL RECEIVE APPROXIMATELY 500 A YEAR FOR 20 YEARS PLUS EDUCATIONAL AID FOR THEIR CHILDREN TO QUALIFY THE PARENTS MUST PARTICIPATE IN A FAMILYPLANNING PROGRAM AND UNDERTAKE TO HAVE NO MORE THAN TWO CHILDREN THE PACKAGE IS VALUED AT AS MUCH AS 16400 PER FAMILY IF THE PARENTS HAVE A THIRD CHILD OR DIVORCE THE PAYMENTS STOP IN HIS THREEHOUR SPEECH MR GOH SAID THE SMALLFAMILIES IMPROVEMENT SCHEME WAS PROMPTED BY STUDIES SHOWING THAT MANY SCHOOL DROPOUTS COME FROM LARGE FAMILIES WHERE THE PARENTS HAVE LESS THAN A SECONDARYSCHOOL EDUCATION MR GOH SAID A PREVIOUS PROGRAM THAT OFFERED CERTAIN WOMEN CASH GRANTS IF THEY UNDERWENT STERILIZATION WASN'T POPULAR IN THE PAST SINGAPORE ALSO HAS OFFERED INCENTIVES TO WELLEDUCATED COUPLES TO PRODUCE CHILDREN STRIKING RAILWAY WORKERS DEFIED A ROMANIAN SUPREME COURT ORDER TO RETURN TO WORK AND WIDENED THEIR STRIKE ON FRIDAY PARALYZING TRAIN TRAFFIC IN THE COUNTRY THOUSANDS OF TRAVELERS WERE STRANDED THROUGHOUT ROMANIA AND NEIGHBORING BULGARIA AND HUNGARY REPORTED DISRUPTED TRAFFIC THE GOVERNMENT HAS ARGUED THAT GIVING IN TO RAIL WORKERS WOULD TRIGGER WAGE DEMANDS BY OTHERS AND FUEL INFLATION NOW RUNNING AT AN ANNUAL RATE OF 200 ROMANIAN RAIL WORKERS EARN ABOUT 200 A MONTH MORE THAN TWICE THE AVERAGE WAGE THE WIDENED STRIKE WHICH NOW INVOLVES 32000 MECHANICS AND ENGINEERS ALSO AFFECTS TRAINS CARRYING FOOD AND MEDICINE AND THOSE SUPPLYING THE MILITARY GERMANY'S PUBLIC SERVICE AND TRANSPORTATION UNION OETV BECAME THE FIRST LABOR GROUP TO OPPOSE ECONOMICS MINISTER GUENTER REXRODT'S PLAN FOR PRIVATIZING FEDERAL STATE AND LOCAL GOVERNMENT HOLDINGS THE OETV SPECIFICALLY ATTACKED A PROPOSAL TO PRIVATIZE SAVINGS BANKS NOTING THAT DOING SO WOULD UNDERMINE THE BANKS' ECONOMIC AND SOCIAL ROLES PARTICULARLY IN EASTERN GERMANY MR REXRODT UNVEILED HIS PRIVATIZATION PLAN THURSDAY AND WILL PRESENT IT TO GERMANY'S CABINET ON SEPT 2 HE HAD APPEALED TO UNIONS TO REFRAIN FROM OBSTRUCTING THE PLAN THE NUMBER OF JAPANESE CORPORATE INSOLVENCIES IN JULY FELL 69 FROM A YEAR EARLIER TO 1129 THE THIRD STRAIGHT DECREASE AFTER 31 MONTHS OF RISING FAILURES DEBTS LEFT BEHIND BY INSOLVENT COMPANIES IN JULY TUMBLED 23 FROM A YEAR EARLIER TO 584 BILLION BUT THAT WAS THE THIRDHIGHEST MONTHLY TOTAL THIS YEAR AND UP 29 FROM JUNE REFLECTING AN INCREASE IN THE NUMBER OF LARGERSCALE FAILURES THE RECENT DECLINE IN INSOLVENCIES DOESN'T SIGNAL A RECOVERY HOWEVER CORPORATE INVESTMENT IN PLANT AND EQUIPMENT A KEY ENGINE OF THE ECONOMY IS STAGNANT AND CORPORATIONS FACE A FOURTH STRAIGHT YEAR OF PROFIT DECLINES INSOLVENCIES ROSE IN THE MANUFACTURING TELECOMMUNICATIONS AND SERVICE SECTORS WHILE THE RETAIL WHOLESALE REAL ESTATE AND CONSTRUCTION SECTORS SAW A DROP IN FAILURES MOST NOTABLE AMONG THE INSOLVENCIES WAS FILM COMPANY NIKKATSU CORP THE FIRST FAILURE OF A COMPANY LISTED ON THE TOKYO STOCK EXCHANGE'S FIRST SECTION IN EIGHT YEARS THE LARGEST INSOLVENCY IN JULY INVOLVED OSAKABASED TAIYO KOKO KK WHICH HAD DEBTS OF 874 MILLION CHINA'S VICE PREMIER ZHU RONGJI WANTS TO INJECT 525 BILLION INTO AILING STATE ENTERPRISES TO MAKE THEM MORE MARKETORIENTED LAST MONTH CHINA VOWED TO TURN AROUND ALL UNPROFITABLE STATE ENTERPRISES WITHIN THREE TO FIVE YEARS A TOKYO TRADING COMPANY IS LOOKING FOR BUYERS FOR MAMMOTH TUSKS VALUED AT 582800 THE TUSKS ARRIVED UNEXPECTEDLY FROM SIBERIA IN A BARTER DEAL FOR JAPANESE DISTILLED LIQUOR EXPORTED TO RUSSIA LAST YEAR 9308160071 930816 MARKETING BRIEF CABLEVISION SYSTEMS CORP LOSS NARROWED AS CASH FLOW INCREASED IN SECOND QUARTER CABLEVISION SYSTEMS CORP WOODBURY NY REPORTED A NARROWER LOSS AND INCREASED OPERATING CASH FLOW FOR THE SECOND QUARTER PRIMARILY BECAUSE OF ITS ACQUISITION OF CABLEVISION OF NEW YORK CITY CABLEVISION REPORTED A LOSS OF 488 MILLION OR 215 A SHARE COMPARED WITH A LOSS OF 858 MILLION OR 383 A SHARE A YEAR EARLIER REVENUE ROSE 24 TO 1682 MILLION OPERATING CASH FLOW A KEY MEASURE OF A CABLE OPERATOR'S PERFORMANCE GAINED 8 TO 672 MILLION CABLEVISION SAID IT COULDN'T PROJECT THE IMPACT OF NEW FEDERAL COMMUNICATIONS COMMISSION REGULATIONS STEMMING FROM THE 1992 CABLE ACT BUT THE CABLE CONCERN SAID THAT IF THE NEW REGULATIONS HAD BEEN APPLIED IN THE SECOND QUARTER OPERATING CASH FLOW WOULD HAVE DECLINED 10 AND REVENUE WOULD HAVE DECREASED ABOUT 5 THE COMPANY SAID ITS SUBSCRIBER BASE AT CABLEVISION OF NEW YORK CITY GREW 67 TO MORE THAN 173000 SINCE ITS JULY 1992 ACQUISITION THE COMPANY SERVES ABOUT 13 MILLION SUBSCRIBERS SYSTEMWIDE 9308160070 930816 BUSINESS BRIEF NEXTEL COMMUNICATIONS INC COMPANY FILES TO INCREASE NOTE OFFER TO 300 MILLION NEXTEL COMMUNICATIONS INC RUTHERFORD NJ SAID IT FILED AN AMENDMENT TO ITS REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO INCREASE A NOTES OFFERING TO 300 MILLION FROM 200 MILLION THE OPERATOR OF SPECIALIZED MOBILE RADIO SYSTEMS SAID IT WAS SEEKING TO BOOST ITS SALE OF SENIOR REDEEMABLE DISCOUNT NOTES DUE 2003 TO FUND DEVELOPMENT OF ITS DIGITAL MOBILE NETWORK AND ACQUISITIONS NEXTEL HAS PLANS TO ACQUIRE SPECIALIZED MOBILE RADIO SYSTEMS IN FLORIDA INCLUDING THE PURCHASE OF A MAJORITY STAKE IN AMERICAN MOBILE SYSTEMS INC A WOODLAND HILLS CALIF OPERATOR OF SPECIALIZED MOBILE RADIO SYSTEMS IN FLORIDA 9308160069 930816 LEISURE & ARTS ANNIE BRIGHTENS DOG DAYS BY MELANIE KIRKPATRICK NEW YORK WHEN THE HIT BROADWAY MUSICAL ANNIE CLOSED IN 1983 AFTER 2377 PERFORMANCES A SEQUEL WAS IMMEDIATELY ANNOUNCED IN THE DECADE THAT FOLLOWED HOWEVER A THEATRICAL CURSE BEWITCHED ANNIE AND HER DESCENDANTS SUCCEEDING GENERATIONS OF ANNIE II WERE BOOED OFF STAGES AROUND THE COUNTRY PRODUCERS SQUANDERED MEGABUCKS AND SEVERAL REDHAIRED TYKES GREW TOO CURVACEOUS FOR THE TITLE ROLE THE DOOMED MUSICAL ALWAYS CLOSED BEFORE MAKING IT TO NEW YORK TO MISQUOTE THE MOST FAMOUS LYRIC OF THE ORIGINAL SHOW TOMORROW WAS NOT A DAY AWAY BUT A DECADE AWAY WELL IT WAS WORTH THE WAIT ANNIE WARBUCKS THE NEW SHOW WITH THE NEW NAME THAT OPENED OFFBROADWAY LAST WEEK IS A BEGUILING LITTLE MUSICAL WRITTEN BY THE SAME TRIUMVERATE THAT PRODUCED ANNIE WRITER THOMAS MEEHAN COMPOSER CHARLES STROUSE AND LYRICIST MARTIN CHARNIN ANNIE WARBUCKS DOESN'T BREAK ANY GROUND IN THE GENRE OF THE AMERICAN MUSICAL COMEDY IT CONTAINS THE KIND OF CHEERY SONGS BROAD ACTING AND CARTOONISH GAGS THAT USED TO BE COMMONPLACE IN THE THEATER THIS IS THE KIND OF SHOW THAT FOLKS MEAN WHEN THEY COMPLAIN THAT THEY DON'T MAKE 'EM LIKE THEY USED TO YOU WON'T WALK OUT OF THE THEATER MULLING ANY MESSAGE BUT YOU'LL LIKELY WALK OUT WITH YOUR TOES TAPPING AND A SMILE ON YOUR LIPS CYNICS AND CURMUDGEONS BEWARE THIS SHOW HAS HEART THE PLOT OF ANNIE WARBUCKS WILL BE FAMILIAR TO ANYONE WHO KNOWS THE ORIGINAL IN PART I LITTLE ORPHAN ANNIE IS LOOKING FOR A FATHER HERE SHE'S LOOKING FOR A MOTHER THE EVIL COMMISSIONER OF CHILD WELFARE TAKING AN OLDFASHIONED MORAL STANCE THAT NO DOUBT WILL PERPLEX ANY YOUNGSTERS IN THE AUDIENCE DECREES THAT A SINGLEPARENT HOME IS AN UNSUITABLE ENVIRONMENT ANNIE WILL HAVE TO GO BACK TO THE ORPHANAGE IF DADDY WARBUCKS DOESN'T GET MARRIED AND SO DADDY SETS OUT TO FIND A WIFE AND THE COMMISSIONER HATCHES A PLAN TO TRAP DADDY AND HIS BILLIONS IN A MATRIMONIAL NET OF HER OWN DESIGN ANNIE RUNS AWAY TO TENNESSEE WHERE WITH THE HELP OF DADDY'S PAL FDR SHE IS EVENTUALLY REUNITED WITH DADDY PLEASE DON'T ACCUSE ME OF SPOILING THE PLOT IF I SAY THAT THE COMMISSIONER GETS HER COMEUPPANCE AND DADDY AND ANNIE GET THE WOMAN OF THEIR DREAMS AS ANNIE THE DIMINUTIVE KATHRYN ZAREMBA COULD BE MISTAKEN FOR ETHEL MERMAN REINCARNATE THE NINEYEAROLD FROM BROKEN ARROW OKLAHOMA MAY NOT BE ABLE TO HOLD A NOTE AS LONG AS THE CHASE MANHATTAN BANK AS GERSHWIN SAID OF MERMAN BUT WHEN IT COMES TO VOLUME SHE'S A CONTENDER KATHRYN IS NO PERKY INGENUE HER HARDBOILED ANNIE HAS PIZAZZ THE TOWERING HARVE PRESNELL REPRISES HIS ROLE AS DADDY WARBUCKS WHOM HE PLAYS WITH PANACHE MR PRESNELL POSSESSES AN ASTONISHINGLY EXPRESSIVE BARITONE HIS RECORDING OF THE ORATORIO CARMINA BURANA WON A GRAMMY FOR BEST CLASSICAL ALBUM A FEW YEARS BACK AND I WAS SORRY HE DIDN'T GET TO PERFORM MORE NUMBERS HIS HEARTRENDING RENDITION OF THE SHOW'S LOVELIEST SONG A YOUNGER MAN DESERVES TO BECOME A POP HIT ALENE ROBERTSON DOES A FINE COMIC TURN AS THE BUMBLING EVIL COMMISSIONER DONNA MCKECHNIE IS INGRATIATING AS HER SIDEKICK BLONDE BOMBSHELL MARGUERITE MACINTYRE IS FETCHING AS THE SECRETARIAL LOVE INTEREST MOLLY SCOTT IS SENSATIONAL AS A SOUTHERN MAMA WITH A COUNTRY VOICE AS BIG AS A COUNTRY MILE AND THE ORPHANS A MOTLEY CREW OF TOUGH TOTS ARE SPLENDID I SUSPECT ANY ONE OF THEM COULD DO A BRILLIANT IMITATION OF JAMES CAGNEY CINDY LU THE MUTT THAT PLAYS ANNIE'S DOG SANDY IS ADORABLE BUT NEEDS TO LEARN HER LINES BETTER I SWEAR I HEARD A COUPLE OF EXTRANEOUS ARFS ANNIE WARBUCKS ORIGINALLY DESTINED FOR A BIG BROADWAY HOUSE WAS SIDETRACKED INSTEAD TO THE 499SEAT VARIETY ARTS THEATER ON THE EDGE OF GREENWICH VILLAGE THIS WORKS TO ITS FINANCIAL ADVANTAGE IN THAT IT CAN AVOID THE CRUSHING COSTS IMPOSED BY THE RAPACIOUS BROADWAY UNIONS IT ALSO WORKS TO ITS DRAMATIC ADVANTAGE IN THAT IT GIVES THE SHOW AN APPEALING INTIMACY AND MEANS THE SINGERS DON'T HAVE TO BE MIKED THE DOWNSIDE IS THAT THE STAGE IS A BIT CRAMPED FOR THE LARGE CAST WHO HAVE TO CAVORT IN PLACE MOST OF THE TIME SET DESIGNER MING CHO LEE DOESN'T HAVE MUCH ROOM TO WORK WITH AND THE RESULTS ARE UNIMAGINATIVE AUGUST IS A TOUGH MONTH TO OPEN A SHOW IN NEW YORK THE TOWNIES ARE ON THE BEACH AND THE OUTOFTOWNERS TEND TO PATRONIZE THE BIGNAME GLITZY BROADWAY MUSICALS LOTS OF SHOWS DON'T SURVIVE PAST LABOR DAY ONLY THE BOX OFFICE WILL TELL WHETHER THIS BEWITCHING ANNIE WARBUCKS WILL FULLY SUCCEED IN DISPELLING THE EVIL CURSE THAT PLAGUED ANNIE II NOTHING TURNS OUT VERY WELL AT ALL IN THE PUBLIC THEATER'S CENTRAL PARK PRODUCTION OF ALL'S WELL THAT ENDS WELL THE TRAGICOMEDY ABOUT A NOBLE WOMAN WHO UNACCOUNTABLY LOVES A CAD ISN'T THE EASIEST OF SHAKESPEARE'S PLAYS BUT THIS PRODUCTION BY DIRECTOR RICHARD JONES IS DRAWNOUT AND DULL THE ONLY SAVING GRACE IS ITS ELEGANT LOOK STEWART LAING'S HANDSOME SET WITH ITS ELONGATED PLANES AND ANGLES MIGHT HAVE BEEN INSPIRED BY SALVATORE DALI AND MIMI JORDAN SHERIN'S PASTEL LIGHTING CASTS THE PLAY IN AN AMIABLE DREAMY HAZE WHICH IS AN AID TO THE DAYDREAMING THE SLOWLY PACED PRODUCTION ENCOURAGES IF ONLY IT SOUNDED AS GOOD AS IT LOOKS 9308160068 930816 TECHNOLOGY BRIEF SCHERINGPLOUGH CORP ORAL DRUG TO TREAT ANGINA IS CLEARED TO BE MARKETED SCHERINGPLOUGH CORP SAID IT RECEIVED GOVERNMENT CLEARANCE TO MARKET AN ORAL ONCEADAY DRUG TO PREVENT ANGINA THE IMDUR BRAND OF ISOSORBIDE MONONITRATE TABLETS WILL BE SOLD BY PRESCRIPTION NATIONWIDE IN OCTOBER THE DRUG WILL BE PRICED COMPETITIVELY WITH OTHER LONGACTING NITRATE TREATMENTS THE PHARMACEUTICAL AND HEALTH CARE CONCERN SAID SCHERING WHICH IS BASED IN MADISON NJ SAID IMDUR IS THE FIRST NITRATE COMPOUND OF ITS KIND TO BE TAKEN ORALLY THE MARKET FOR ANGINA TREATMENT IS ABOUT 12 BILLION OF WHICH NITRATE COMPOUND TREATMENTS MAKE UP 400 MILLION THE COMPANY ESTIMATED SCHERING REPORTED SALES OF 405 BILLION IN 1992 9308160067 930816 BOEING CO ENGINE MAKERS ENCOUNTER DEVELOPMENT PROBLEMS WITH 777 JET BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL PROBLEMS IN DEVELOPING ENGINES FOR BOEING CO'S NEW 777 JETLINER ARE PUTTING PRESSURE ON THE TEST SCHEDULES DESIGNED TO HAVE THE FIRST OF THE 330SEAT PLANES READY FOR DELIVERY IN MAY 1995 THE MOST IMMEDIATE COMPLICATIONS DESIGN CHANGES ON UNITED TECHNOLOGIES CORP'S PRATT & WHITNEY ENGINE HAVE SOME TOP MANAGERS INVOLVED WITH THE 777 PROJECT WORRIED WE'RE GOING TO BE CHEWING ON OUR FINGERNAILS FOR A WHILE SAID A KNOWLEDGEABLE EXECUTIVE AT ONE OF THE COMPANIES INVOLVED WHILE TROUBLE MATING NEW ENGINES TO ALLNEW AIRCRAFT ISN'T UNUSUAL AND IS OFTEN WORKED OUT IN TIME TO MEET DELIVERY SCHEDULES THE PRATT & WHITNEY PROBLEMS ARE BEING WATCHED INTENSELY BECAUSE ITS ENGINE IS SUPPOSED TO BE CERTIFIED IN NINE MONTHS A RELATIVELY SHORT TIME GIVEN THE TESTING YET TO BE PERFORMED MOREOVER ANY RISK IS TROUBLESOME FOR BOEING AND ITS ENGINE MAKERS WHICH ARE INCREASINGLY BANKING ON THE PLANE TO PUMP UP PRODUCTION IN THE FACE OF A DEEPENING WORLDWIDE AIRCRAFT INDUSTRY SLUMP ENGINE RELIABILITY IS ALSO THE KEY TO WINNING THE EXPEDITED APPROVAL THE MANUFACTURERS ARE SEEKING FROM FEDERAL REGULATORS TO FLY INTERCONTINENTAL ROUTES THAT TAKE THE TWOENGINE JET THREE HOURS FROM THE NEAREST AIRPORT WHEN IT FLIES OVER WATER TYPICALLY TWINENGINE JETS ARE ALLOWED TO FLY SUCH ROUTES ONLY AFTER YEARS OF DEMONSTRATING RELIABILITY FURTHER BOEING WHICH HAS LONG PRIDED ITSELF ON GETTING PLANES TO AIRLINE CUSTOMERS ON TIME WANTS TO AVOID ANY MORE EMBARRASSING DELAYS SUCH AS THOSE THAT HAMPERED THE 440SEAT 747400 SEVERAL YEARS AGO SEVERAL MANAGERS AT BOEING AND PRATT & WHITNEY WHILE CONFIRMING THE PROBLEMS RELATING TO THE 10FOOTTALL ENGINES THE MOST POWERFUL YET DEVELOPED CHALLENGED THE SIGNIFICANCE OF THE DEVELOPMENTS THEY NOTED THAT THE TESTING IS INTENDED TO UNCOVER DEFICIENCIES AND THE NEED FOR ALTERATIONS THE 777 DEVELOPMENT HAS BEEN COMPLICATED IN PART BY THE NEED FOR INCREASED THRUST BECAUSE THE JET'S WEIGHT HAS GROWN BOEING AND PRATT MANAGERS CONFIRMED THAT SUBCONTRACTOR MOTOREN & TURBINEN UNION GMBH OF GERMANY IS REDESIGNING THE ENGINE'S LOWPRESSURE TURBINE USING HIGHERSTRENGTH STEEL ALLOYS PRATT OFFICIALS ALSO CONFIRMED THEY ARE CONTEMPLATING DESIGN CHANGES IN THE COMPRESSOR OF THE PW4084 ENGINE THE LATEST IN A SERIES OF PW4000 MODELS A SPOKESMAN SAID THAT IF THE COMPRESSOR CHANGES ARE ENACTED OTHER CHANGES IN DESIGN OR MATERIALS MAY BE NECESSARY ONE PERSON FAMILIAR WITH THE ENGINE'S PERFORMANCE SAID IT HAS MISSED FUELCONSUMPTION TARGETS BY AT LEAST 15 GRANVILLE FRAZIER DIRECTOR OF 777 ENGINE PROGRAMS FOR SEATTLEBASED BOEING DECLINED TO DISCUSS THE FUEL GUARANTEES BUT HE SAID THE FUEL AND DESIGN ISSUES ARE TWO SEPARATE PROBLEMS MR FRAZIER ALSO SAID THAT THE DESIGN IMPROVEMENTS THAT ARE GOING IN ARE THE KINDS OF IMPROVEMENTS THAT WILL PUT US BACK ON PLAN SO I FEEL COMFORTABLE WITH THAT PRATT & WHITNEY'S TOM HARPER WHO OVERSEES DEVELOPMENT OF PW4000 ENGINES SAID DISTRESS WAS DISCOVERED IN LOWPRESSURE TURBINE PARTS DURING EXTREMETEMPERATURE TESTING LATE LAST YEAR HE SAID THE ENGINE'S ONLY OTHER NOTABLE FAILURE CAME A YEAR AGO WHEN GUIDEVANES THAT CHANNEL EXHAUST WERE FLUSHED FROM THE BACK OF THE ENGINE THE PROBLEM HAS BEEN CORRECTED MR HARPER SAID THE DESIGN AND MATERIALS CHANGES WEREN'T NEEDED FOR THE INITIAL SHORTERRANGE A VERSIONS OF THE JET HE SAID SOME OF THE CHANGES BECAME NECESSARY WHEN A TEAM OF AIRLINE AND MANUFACTURING MANAGERS DECIDED TO PREPARE THE ENGINE TO OFFER MORE POWER FOR LATER B VERSIONS OF THE 777 THAT ARE INTENDED TO FLY LONGER DISTANCES UAL CORP'S UNITED AIRLINES IN SCALING BACK DELIVERY PLANS THIS YEAR WON AGREEMENTS FROM THE MANUFACTURERS TO SHIFT SOME ORDERS TO THE LONGERRANGE PRATTPOWERED VERSION INCREASING THE PRESSURE TO DEVELOP THAT JET AND THE HIGHERPOWERED ENGINE SOONER A UNITED SPOKESMAN HADN'T ANY IMMEDIATE COMMENT ON THE ENGINE PROBLEMS AN OFFICIAL OF ALL NIPPON AIRWAYS WHO IS OVERSEEING THE ISSUES FOR THAT CARRIER SAID DESIGN AND MATERIAL CHANGES ARE BEING MADE OR STUDIED ALL OVER THE ENGINE AND FUEL CONSUMPTION IS AN ISSUE HOWEVER HE SAID HE BELIEVES THE ENGINE WILL BE DEVELOPED ON TIME THE FIRST PRATTPOWERED 777S ARE SCHEDULED TO GO TO UNITED AIRLINES IN MAY 1995 WITH DELIVERIES TO ALL NIPPON AIRWAYS LATER THAT YEAR BOTH MESSRS FRAZIER AND HARPER SAID THEY BELIEVE MUCH OF THE NERVOUSNESS AMONG SENIOR MANAGERS REFLECTS THE FACT THAT DETAILED INFORMATION ABOUT NORMAL DEVELOPMENT HURDLES IS FOR THE FIRST TIME BEING WIDELY CIRCULATED AMONG MEMBERS OF SPECIAL AIRLINEMANUFACTURER TEAMS SET UP FOR THE 777 ADDING TO THE WORRIES AT BOEING IS THAT A SECOND ENGINE MODEL THE GE90 BEING DEVELOPED BY GENERAL ELECTRIC CO SUFFERED NOTABLE INTERNAL DAMAGE DURING A STALLRELATED EVENT AT ACCELERATION TESTS ON JULY 22 A GE SPOKESMAN SAYS THE CAUSE IS UNDER INVESTIGATION AND THERE IS NO ANTICIPATED IMPACT ON US CERTIFICATION PLANNED FOR NOVEMBER 1994 OR ON DELIVERIES OF THE FIRST GEPOWERED 777S TO BRITISH AIRWAYS IN SEPTEMBER 1995 ROLLS ROYCE PLC IS DESIGNING ENGINES THAT WILL GO ON 777S BEGINNING IN 1996 BUT IT HASN'T YET BEGUN EXTENSIVE TESTING IN ALL 130 OF THE 777S HAVE BEEN ORDERED BY 13 CARRIERS 9308160066 930816 US BAN ON BAXTER INTERNATIONAL BIDS HURTS REPUTATION MORE THAN BUSINESS BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL THE TEMPORARY BAN THAT BLOCKS BAXTER INTERNATIONAL INC FROM BIDDING FOR NEW CONTRACTS FROM FEDERAL AGENCIES WILL AFFECT A RELATIVELY SMALL AMOUNT OF THE HOSPITALSUPPLY COMPANY'S OVERALL BUSINESS BUT MARKS ANOTHER BLOW TO ITS REPUTATION SAYING THAT BAXTER DECEIVED GOVERNMENT PURCHASING AGENTS SO THE COMPANY COULD BOOST PROFITS THE DEPARTMENT OF VETERANS AFFAIRS ON FRIDAY BARRED BAXTER FROM BIDDING FOR NEW CONTRACTS FOR AS LONG AS A YEAR THE DEPARTMENT'S BAN APPLIES TO ALL OTHER FEDERAL AGENCIES AS WELL THE SUSPENSION DOESN'T AFFECT BAXTER'S CURRENT FEDERAL CONTRACTS THE DEERFIELD ILL COMPANY SAID SALES TO US AGENCIES TOTALED ABOUT 130 MILLION LAST YEAR OUT OF OVERALL BAXTER SALES OF 85 BILLION THE GOVERNMENT DECISION SEEMS LIKELY TO CAST A DEEPER SHADOW OVER BAXTER'S CREDIBILITY THE COMPANY'S REPUTATION WAS STAINED EARLIER THIS YEAR WHEN AFTER HAVING REPEATEDLY PROTESTED ITS INNOCENCE IT PLEADED GUILTY TO A FELONY CHARGE OF VIOLATING THE US LAW THAT PROHIBITS COOPERATION WITH THE ARAB BOYCOTT AGAINST ISRAEL BY PROVIDING INFORMATION ABOUT ITS BUSINESS ACTIVITIES IN ISRAEL TO ARAB LEAGUE BOYCOTT AUTHORITIES IN ADDITION TO IMPOSING THE BAN ON NEW CONTRACTS THE VETERANS AFFAIRS DEPARTMENT SAID IT IS SEEKING TO DEBAR FOR AS MANY AS THREE YEARS BAXTER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER VERNON R LOUCKS JR ALONG WITH THE COMPANY'S PRESIDENT JAMES R TOBIN AND ITS FORMER GENERAL COUNSEL G MARSHALL ABBEY THAT MOVE IS BASED ALSO ON THE FELONY CONVICTION IN THE ANTIBOYCOTT CASE THE VA SAID A DEBARMENT DECISION WOULD BLOCK THE COMPANY FROM NEW FEDERAL BUSINESS FOR AS LONG AS THREE YEARS BUT THE FIRST YEAR WOULD BE CONCURRENT WITH THE BAN ANNOUNCED FRIDAY THE VA'S ANNOUNCEMENT ON FRIDAY HELPED PUSH BAXTER SHARES DOWN 175 OR 68 TO 24 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING VOLUME WAS HEAVY WITH NEARLY THREE MILLION SHARES CHANGING HANDS BAXTER HAS 30 DAYS TO APPEAL THE SUSPENSION IT SAID IT INTENDS TO PROVIDE INFORMATION AND ASK THE VA TO RECONSIDER ITS DECISION THE VA SAID AN INVESTIGATION IT BEGAN IN 1990 WHICH EVENTUALLY EXPANDED TO INCLUDE DEPARTMENT OF DEFENSE INVESTIGATORS DEMONSTRATED THAT BAXTER REPRESENTATIVES DID IN FACT MISLEAD PURCHASING AGENTS AT A NUMBER OF VA MEDICAL CENTERS ACROSS THE COUNTRY THE VA CONTRACTS WITH NUMEROUS SUPPLIERS FOR THOUSANDS OF PRODUCTS USED IN THE VA HOSPITAL SYSTEM BECAUSE THE GOVERNMENT DOESN'T KEEP A COMPUTERIZED LIST OF WHICH VENDORS PROVIDE WHICH PRODUCTS AT WHAT PRICE IT DEPENDS ON THE VENDORS TO VERIFY THAT THEY HAVE A CONTRACT FOR A SPECIFIC PRODUCT UNDER WHAT WAS APPARENTLY PART OF A BAXTER SALES STRATEGY THE GOVERNMENT SAID ONCE THE COMPANY WON CONTRACTS FOR SOME OF ITS PRODUCTS IT SOUGHT TO PULL THROUGH OTHER ITEMS WHICH SOMETIMES CARRIED A WIDER PROFIT MARGIN FOR BAXTER THAN DID THE PRODUCTS THAT WERE COVERED BY CONTRACTS BAXTER DID THIS THE GOVERNMENT SAID BY DUPING VA PURCHASING AGENTS INTO THINKING THAT THE ADDITIONAL PRODUCTS ALSO WERE COVERED UNDER BAXTER'S CONTRACT THE INVESTIGATION SHOWED ALSO THAT BAXTER'S STRATEGY WAS USED AGAINST THE DEPARTMENT OF DEFENSE SAID THE VA ADDING THAT IT HAD BEEN ASSISTED IN ITS AUDIT BY THE ARMY AIR FORCE AND NAVY THE GOVERNMENT DECLINED TO PROVIDE AN ESTIMATED TOTAL FOR ALLEGED OVERCHARGES BAXTER SAID IT WAS VERY DISTURBED BY THE GOVERNMENT'S UNEXPECTED NOTIFICATION IN EARLY 1991 IT SAID THE VA BROUGHT TO THE COMPANY'S ATTENTION THE FACT THAT THERE HAD BEEN MISUNDERSTANDINGS WITHIN BAXTER ABOUT WHICH OF OUR PRODUCTS WERE OR WERE NOT ON THE GOVERNMENT'S FEDERAL SUPPLY SCHEDULE AND ALSO QUESTIONED THE COMPANY'S METHODS FOR SELLING PRODUCTS NOT ON THE FEDERAL SUPPLY SCHEDULE IT WAS NOT EVER BAXTER'S INTENT AS A COMPANY TO MISLEAD THE VA IN ANY WAY THE COMPANY SAID IN A RELEASE ISSUED OVER THE WEEKEND SINCE THOSE INITIAL DISCUSSIONS IT SAID IT HAS DONE EVERYTHING WE BELIEVED POSSIBLE TO ASSURE THAT ALL OUR DEALINGS WITH THEM HAVE BEEN ETHICAL PROPER EFFECTIVE AND EFFICIENT THE COMPANY SAID THAT IN JULY 1991 THE VA TOLD US IT WAS PLEASED WITH THE ACTIONS WE TOOK WE HEARD NOTHING FURTHER FROM THEM ABOUT THIS MATTER UNTIL THEIR NEWS RELEASE FRIDAY ALTHOUGH COMPANY OFFICIALS CONTEND THAT ANY VIOLATION OF THE ANTIBOYCOTT LAW'S PROVISIONS WAS INADVERTENT BAXTER'S GUILTY PLEA HAS ALREADY DISGRUNTLED SOME CUSTOMERS PREMIER HOSPITAL ALLIANCE A NATIONWIDE AFFILIATION OF ABOUT 150 HOSPITALS BASED IN WESTCHESTER ILL RECENTLY SAID IT PLANS TO REDUCE ITS BUSINESS WITH BAXTER BY ABOUT 50 MILLION OVER THE NEXT YEAR TO PROTEST BAXTER'S ETHICS AND BUSINESS PRACTICES PRINCIPALLY ITS MIDEAST ACTIVITIES NEW YORK CITY COMPTROLLER ELIZABETH HOLTZMAN RECENTLY URGED THE CITY'S PUBLIC HOSPITAL SYSTEM TO CONSIDER CANCELING CONTRACTS WITH BAXTER BECAUSE OF ITS GUILTY PLEA ALTHOUGH SHE HAS NO LEGAL AUTHORITY TO IMPOSE SUCH A BAN 9308160065 930816 ALYESKA SETTLEMENT PLAN GETS PRELIMINARY APPROVAL ANCHORAGE ALASKA A PROPOSED 98 MILLION SETTLEMENT BETWEEN ALYESKA PIPELINE SERVICES CO AND ALASKANS ALLEGEDLY HARMED BY THE EXXON VALDEZ OIL SPILL WON PRELIMINARY APPROVAL OF AN ALASKA SUPERIOR COURT JUDGE THE CONTEMPLATED SETTLEMENT WOULD WRAP UP A RASH OF LAWSUITS THAT ACCUSED ALYESKA A CONSORTIUM OWNED BY EXXON CORP AND OTHER OIL COMPANIES OF MISMANAGING ITS RESPONSE TO THE 1989 SUPERTANKER DISASTER JUDGE BRIAN SHORTELL ORDERED THAT SOME 60000 POTENTIAL CLAIMANTS BE NOTIFIED OF THE PROPOSAL AND OF OCT 28 HEARINGS TO REVIEW IT LLOYD B MILLER A LEAD PLAINTIFFS' ATTORNEY AND A PROPONENT OF THE SETTLEMENT SAID SOME PLAINTIFFS HAVE CRITICIZED THE TERMS UNDER CONSIDERATION 9308160064 930816 NAFTA IS FACING DIFFICULT TRIAL IN THE CONGRESS WITH SIDE ACCORDS IN PLACE CLINTON SEEMS UNREADY TO MAKE ALLOUT PUSH BY ASRA Q NOMANI AND DIANNE SOLIS STAFF REPORTERS OF THE WALL STREET JOURNAL GETTING THE NORTH AMERICAN FREE TRADE AGREEMENT THROUGH A HOSTILE CONGRESS IS LIKELY TO REQUIRE AN ALLOUT EFFORT BY PRESIDENT CLINTON AND SO FAR HE DOESN'T SEEM PREPARED TO MAKE ONE NO SOONER HAD TRADE NEGOTIATORS FOR THE US CANADA AND MEXICO UNVEILED DETAILS OF THEIR AGREEMENTS ON DIFFICULT ISSUES INVOLVED IN THE PACT THAN HOUSE MAJORITY LEADER RICHARD GEPHARDT SAID THEY WEREN'T GOOD ENOUGH FOR HIM THE MISSOURI DEMOCRAT CALLED THE SIDE ACCORDS DEFICIENT AND SAID HE COULDN'T SUPPORT NAFTA AS IT STANDS THE SIDE AGREEMENTS REACHED LAST WEEK WERE SUPPOSED TO CLINCH SUPPORT FROM HOLDOUTS WITH RESERVATIONS ABOUT ENVIRONMENTAL AND LABOR ISSUES RAISED BY THE PACT WHICH WOULD DISMANTLE TRADE BARRIERS BETWEEN THE US CANADA AND MEXICO DURING THE NEXT 15 YEARS UNDER THE LATEST AGREEMENTS THE THREE COUNTRIES WOULD SET UP ENVIRONMENTAL AND LABOR COMMISSIONS THAT WOULD MONITOR WHETHER COUNTRIES WERE COMPLYING WITH THEIR LAWS IN THESE AREAS COMPLAINTS COULD BE LODGED WITH THOSE COMMISSIONS THE COUNTRIES WOULD TRY TO SOLVE ANY COMPLAINT THROUGH NEGOTIATIONS IF THAT DIDN'T WORK A PANEL OF EXPERTS FROM THE THREE COUNTRIES WOULD EVALUATE THE COMPLAINT THE GOVERNMENT WOULD HAVE 60 DAYS TO ENFORCE ITS LAWS IF THE COMPLAINT WAS FOUND TO BE VALID IF THAT DIDN'T HAPPEN THE PANEL WOULD HAVE 60 DAYS TO COME UP WITH ITS OWN ENFORCEMENT PLAN AND LEVY A FINE OF AS MUCH AS 20 MILLION IF THE PROBLEM WASN'T CLEARED UP SANCTIONS SUCH AS DUTIES OR QUOTAS COULD BE IMPOSED AGAINST MEXICO OR THE US IN CANADA'S CASE THE PANEL'S RULING WOULD BE TAKEN TO THE FEDERAL COURT OF CANADA WHICH WOULD ORDER CANADA TO PAY THE FINE CANADA ULTIMATELY COULD LOSE ITS NAFTA BENEFITS EVEN WITH THE NEW SIDE AGREEMENTS THE TRADE PACKAGE DUBBED NAFTAPLUS BECAUSE OF THE SIDE DEALS FACES TROUBLE IT'S GOING TO BE REALLY HARD TO PASS IT PREDICTED MR GEPHARDT THE CLINTON ADMINISTRATION DROPPED THE BALL FROM THE START BY NOT HAVING A PROMOTION PLAN TO PUSH THE AGREEMENT SAID RAUL HINOJOSAOJEDA A UNIVERSITY OF CALIFORNIA AT LOS ANGELES PROFESSOR AND A TRADE ADVISER TO MR CLINTON DURING THE CAMPAIGN THEY NEEDED A BANG IT'S BASICALLY COORDINATED AS A WHIMPER CLINTON ADMINISTRATION OFFICIALS SAY WILLIAM DALEY A CHICAGO LAWYERLOBBYIST WHO IS EXPECTED TO BE THE ADMINISTRATION'S NEW NAFTA CZAR WILL KICK IN THIS WEEK WITH AN EFFORT TO PUSH THE PACT PAST SKEPTICAL LAWMAKERS WHO MUST APPROVE THE AGREEMENT THIS FALL IF IT IS TO TAKE EFFECT ON SCHEDULE JAN 1 US OFFICIALS INSIST THEY CAN APPEASE THEIR LEGISLATIVE OPPONENTS IN THE DETAILS OF HOW THE AGREEMENT WOULD TAKE EFFECT UNDER THE LEGISLATIVE PROCEDURE BEING USED CONGRESS WON'T BE ABLE TO AMEND THE AGREEMENT THE CLINTON ADMINISTRATION IS CLEARLY STARTING OFF IN TROUBLE TRYING TO PITCH ITS MESSAGE TO AN AMERICAN PUBLIC TUNED TO TEXAN ROSS PEROT'S MANTRA THAT THERE WILL BE A GIANT SUCKING SOUND OF JOBS LEAVING THE US IF NAFTA PASSES ADMINISTRATION OFFICIALS HAVE TO COMBAT A FIERCE ANTINAFTA CAMPAIGN BY A SLEW OF ENVIRONMENTAL GROUPS AND LABOR UNIONS INCLUDING THE SIERRA CLUB GREENPEACE THE AFLCIO AND THE TEAMSTERS THEY'VE ALLOWED NAFTA TO SLIDE ALL YEAR THEY'VE NOW GOTTEN THEMSELVES INTO A DEEP HOLE SAID REPUBLICAN WHIP NEWT GINGRICH OF GEORGIA A NAFTA SUPPORTER HE PREDICTED THAT EVEN IF ROUGHLY 110 OF THE 175 HOUSE REPUBLICANS ULTIMATELY SUPPORT THE AGREEMENT THE ADMINISTRATION STILL WOULD NEED ALMOST 110 OF THE 258 HOUSE DEMOCRATS THE ADMINISTRATION IS PREDICTING STRONGER REPUBLICAN SUPPORT EXPECTING AT LEAST 125 TO 140 HOUSE REPUBLICANS IT'S ESTIMATING THAT IT NEEDS BETWEEN 75 TO 85 DEMOCRATS AND FIGURES IT HAS 67 SO FAR THAT MEANS GETTING THE NECESSARY 218 VOTES WOULD REQUIRE A FULLCOURT PRESS BY THE ADMINISTRATION PRESIDENT CLINTON VOWED SUCH A FIGHT DECLARING I PLEDGE MY STRONGEST COMMITMENT TO A MAJOR EFFORT THIS FALL TO SECURE NAFTA'S PASSAGE BUT SUCH AN EFFORT HASN'T BECOME EVIDENT YET AFTER US TRADE REPRESENTATIVE MICKEY KANTOR UNVEILED THE SIDE AGREEMENTS FRIDAY MORNING HE JETTED OFF FOR A EUROPEAN SUMMER VACATION EVEN AS OPPONENTS WERE HURLING ATTACKS AT THE TRADE PACT LATER MR KANTOR FELL 12 FEET THROUGH AN AIR SHAFT WHILE WATCHING FIREWORKS ON THE ROOF OF A GENEVA HOTEL AND ENDED UP IN HOSPITAL WITH BROKEN VERTEBRAE SAID A US OFFICIAL WHO ADDED THAT MR KANTOR IS RECUPERATING ADMINISTRATION OFFICIALS SAID THE VACATION WAS WELLEARNED AFTER DAYS OF NONSTOP NEGOTIATIONS AND ARGUE THEY HAVE PLENTY OF TIME TO WAGE THEIR BATTLE THEY DON'T EXPECT CONGRESS TO VOTE ON THE PACT UNTIL LATE NOVEMBER OR EARLY DECEMBER BEFORE THAT A US APPEALS COURT IS EXPECTED TO RULE ON ANOTHER ISSUE THAT HAS ENTANGLED NAFTA WHETHER THE GOVERNMENT MUST FILE AN ENVIRONMENTAL IMPACT STATEMENT ON NAFTA SOMETHING A FEDERAL COURT JUDGE SAID IT HAS TO DO THE CLINTON ADMINISTRATION'S LOBBYING EFFORTS WILL BE TEMPERED BY THE FACT THAT NAFTA WILL TAKE A BACK SEAT TO HEALTH CARE THE DEMOCRATIC NATIONAL COMMITTEE SAID IT WILL FUNNEL MOST OF ITS RESOURCES TOWARD HEALTH CARE DURING MEETINGS FRIDAY ADMINISTRATION OFFICIALS LAID OUT A NAFTA STRATEGY THAT WILL INCLUDE SEVERAL ELEMENTS QUICKRESPONSE COUNTERS TO CRITICS GRASSROOTS CAMPAIGNING REACHING OUT TO BUSINESSES AND ENVIRONMENTAL GROUPS AND 1ON1 LOBBYING OF LAWMAKERS ACCORDING TO THE US OFFICIAL STILL ADMINISTRATION OFFICIALS ARE DESCRIBING THEIR EFFORT IN EVEN MODEST TERMS THIS IS NOT GOING TO BE LIKE A CAMPAIGN SAID THE US OFFICIAL IT WILL BE MORE EDUCATIONAL THE CLINTON ADMINISTRATION HAS TO CAREFULLY WEIGH THE FOREIGNPOLICY IMPLICATIONS OF ITS BATTLE A NAFTA LOSS IN THE CONGRESS WOULD SEND STRONG TREMORS THROUGH MEXICO'S POLITICAL SYSTEM SINCE MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI BROACHED THE IDEA OF THE TRADE PACT IN 1990 HIS GOVERNMENT HAS PROMOTED NAFTA AS THE CROWNING ACHIEVEMENT OF SWEEPING ECONOMIC REFORMS MR SALINAS WON THE PRESIDENCY IN FRAUDMARRED 1988 ELECTIONS THAT OFFICIALLY GAVE HIM THE SLIMMEST VICTORY MARGIN IN THE HISTORY OF MEXICO'S RULING PARTY THE PARTY OF THE INSTITUTIONAL REVOLUTION THE COMING ELECTIONS ARE EXPECTED TO BE A TEST OF WHETHER MEXICO CAN TRULY MOVE TOWARD A MULTIPARTY OR TWOPARTY SYSTEM BUT ALREADY NAFTA HAS THROWN MEXICO'S PRESIDENTIAL SUCCESSION TRADITIONALLY A COMBINATION OF A SELECTION AND ELECTIONS INTO DISARRAY THE CHOICE BY PRESIDENT SALINAS OF HIS SUCCESSOR KNOWN AS EL BUENO OR THE GOOD ONE WILL BE DELAYED TWO TO THREE MONTHS BECAUSE OF NAFTA UNCERTAINTIES SAYS A HIGH GOVERNMENT SOURCE UNDER NORMAL CIRCUMSTANCES EL BUENO WOULD HAVE BEEN UNVEILED BY MIDSEPTEMBER THE GOVERNMENT OFFICIAL SAID MR SALINAS'S PRESIDENTIAL CANDIDATE FOR THE RULING PARTY COULD FACE A PARTICULARLY DIFFICULT ELECTION IF NAFTA IS DEFEATED AND MEXICO'S ALREADY SLUGGISH ECONOMY BECOMES MORE SO WHAT WORRIES THE SALINAS ADMINISTRATION MORE ISN'T WHO MIGHT BE THE SUCCESSOR BUT RATHER HOW THE MEXICAN ECONOMY MIGHT LOOK IN AUGUST 1994 AT THE TIME OF PRESIDENTIAL ELECTIONS SAID PRIMITIVO RODRIGUEZ THE DIRECTOR OF A MEXICOUS STUDIES PROGRAM FOR THE QUAKER CHURCH ON FRIDAY AN EBULLIENT PRESIDENT SALINAS MOVED QUICKLY TO PLAY TO BOTH HIS POLITICAL AUDIENCES WITH A COTERIE OF MEXICAN CAPITALISTS IN THE AUDIENCE MR SALINAS PRAISED THE PIONEERING ACCORDS AND ANNOUNCED THE PREPARATION OF A RESOLUTION TO LINK INCREASES IN THE MINIMUM WAGE TO PRODUCTIVITY SOMETHING MR GEPHARDT HAS SOUGHT IN THE US MEXICO'S DISMAL DAILY MINIMUM WAGE OF ABOUT 450 HAS BEEN A SORE POINT FOR NAFTA OPPONENTS WHO FEAR US INDUSTRY WILL FLOCK SOUTH OF THE RIO GRANDE TO EXPLOIT THE POORLY PAID MEXICANS AND IN MEXICO THE LONGSUFFERING WORKERS SAW THEIR BUYING POWER HALVED DURING THE DEBTSTRUCK 1980S FOR THE PAST FIVE YEARS AS THE GOVERNMENT BEAT BACK TRIPLEDIGIT INFLATION WORKERS HAVE SEEN WAGE INCREASES CAPPED AT NO MORE THAN 99 AS PART OF THE SALINAS AUSTERITY PLAN BUT THE MEXICAN PRESIDENT WAS SURPRISINGLY SCANT IN DETAILS OF THE WAGE PLAN IT IS UNCLEAR FOR EXAMPLE WHEN THE PLAN COULD TAKE EFFECT AND WHETHER IT WILL SUPERSEDE THE WAGE CAPS OF THE AUSTERITY PROGRAM KNOWN HERE AS THE PACTO FURTHER IT'S UNCLEAR WHETHER MORE THAN 10 TO 15 OF THE MEXICAN LABOR FORCE WILL BE COVERED BY AN INCREASE IN THE MINIMUM WAGE THAT IS THE AMOUNT OF WORKERS NOW RECEIVING ONLY THE DAILY MINIMUM WAGE ACCORDING TO LABOR ANALYSTS JEFFREY H BIRNBAUM IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9308160063 930816 BUSINESS BRIEF SAFECO CORP INSURER TO PAY POLICYHOLDERS 40 MILLION IN REBATE ACCORD SAFECO CORP SEATTLE SAID IT AGREED TO PAY 40 MILLION TO POLICYHOLDERS IN A SETTLEMENT WITH CALIFORNIA INSURANCE REGULATORS AS PART OF A REBATE PLAN APPROVED BY VOTERS IN 1988 THE INSURANCE COMPANY SAID THE PAYMENT WOULD RESULT IN AN AFTERTAX THIRDQUARTER CHARGE OF 41 CENTS A SHARE THE AVERAGE PAYMENT WILL AMOUNT TO 111 FOR EACH POLICY IN FORCE BETWEEN NOVEMBER 1988 AND NOVEMBER 1989 THE AGREEMENT ARISES FROM PROPOSITION 103 THE 1988 PREMIUMROLLBACK INITIATIVE WHICH INSURERS INCLUDING SAFECO HAVE FOUGHT IN THE COURTS EVER SINCE SAFECO SAID IT WILL WITHDRAW FROM TWO PENDING LEGAL ACTIONS UNDER TERMS OF THE SETTLEMENT 9308160062 930816 PHYSICIANINVESTORS GET COLD SHOULDER FROM T2 MEDICAL COMPANY WON'T RETURN CALLS OF FORMER DARLINGS AS SUITS MOUNT AND STOCK PLUNGES BY HELENE COOPER AND EMORY THOMAS JR STAFF REPORTERS OF THE WALL STREET JOURNAL PHYSICIAN SHAREHOLDERS OF T2 MEDICAL INC ONCE WINED AND DINED BY COMPANY OFFICIALS ARE NOW OUT IN THE COLD AS THEIR STOCK IN THE ONCEHIGHFLYING HOME INFUSION COMPANY HAS PLUMMETED AMID DISCLOSURES OF ACCOUNTING IRREGULARITIES AND DEPARTURES OF TWO KEY EXECUTIVES WE CAN'T FIND OUT ANYTHING SAYS ONE MINNEAPOLIS ONCOLOGIST WHO OWNS A STAKE AN ONCOLOGIST FROM BLOOMINGTON MINN SAYS HE TOO IS GETTING THE COLD SHOULDER T2 HAS ALWAYS TREATED US WELL HE SAYS BUT I'VE BEEN CALLING AND CALLING THE COMPANY AND THEY WON'T TALK TO ME THAT'S AN ABRUPT CHANGE FOR THE COMPANY'S DOCTORINVESTORS MANY OF WHOM WERE ONCE TREATED TO LAVISH TRIPS AND MEALS AS LITTLE T2 MEDICAL RECRUITED THEM AND THEN WORKED TO KEEP THEM HAPPY EVEN AS THE COMPANY'S STOCK SAGGED WHEN THE GOVERNMENT BEGAN TO SCRUTINIZE THEIR RELATIONSHIP THE COMPANY HAS 1700 PHYSICIAN INVESTORS IT WAS UNCLEAR HOW MUCH T2 STOCK THEY HOLD IT HAD 404 MILLION COMMON SHARES OUTSTANDING AS OF MARCH 31 MEANWHILE AT LEAST FIVE CLASS ACTIONS WERE FILED AGAINST T2 MEDICAL IN US DISTRICT COURT IN ATLANTA FRIDAY IN A NEW ROUND OF LITIGATION SPURRED BY THE LATEST DISCLOSURES THE NEW LAWSUITS CHARGE T2 WITH VIOLATING SECURITIES LAWS BY DISSEMINATING FALSE AND MISLEADING INFORMATION IN ADDITION ONE SUIT CHARGES THAT COMPANY EXECUTIVES OVERSTATED EARNINGS IN ORDER TO KEEP THE PRICE OF T2 STOCK ARTIFICIALLY HIGH TWO OF THE LAWSUITS NOTE THAT STANLEY S TROTMAN A DIRECTOR AND J LEE LEDBETTER T2'S CHIEF OPERATING OFFICER SOLD STOCK RECENTLY MR TROTMAN WAS A BIG SELLER OF T2 STOCK FROM DECEMBER TO MARCH ACCORDING TO INSIDER TRADING RECORDS MR LEDBETTER SOLD 10000 SHARES IN AN OPTIONRELATED SALE ON JUNE 15 WHEN THE STOCK WAS TRADING AT 15 A SHARE NEITHER MR TROTMAN NOR MR LEDBETTER NOR OTHER COMPANY OFFICIALS WOULD RETURN PHONE CALLS T2 STOCK TUMBLED 35 TO 8875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THURSDAY AFTER THE COMPANY ANNOUNCED THAT IT WOULD HAVE TO SHARPLY RESTATE FIRST AND SECONDQUARTER EARNINGS IT SAID THIRD QUARTER RESULTS WOULD ALSO BE AFFECTED BY THE ACCOUNTING IRREGULARITIES AND ERRORS STEMMING FROM DOUBTFUL ACCOUNTS APPARENTLY BILLINGS MADE BY T2 THAT NEITHER INSURERS NOR PATIENTS WILL COVER IT ALSO SAID JOSEPH C ALLEGRA RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER AND DAVID HERSH CHIEF FINANCIAL OFFICER AND TREASURER TOOK ADMINISTRATIVE LEAVE WITH PAY T2 SHARES FELL 21 OR 1875 TO 7 FRIDAY SEPARATELY THE DEPARTMENT OF HEALTH AND HUMAN SERVICES SAID THAT ITS PREVIOUSLY DISCLOSED INVESTIGATION OF T2 FOCUSES ON POSSIBLE MEDICARE FRAUD JEFFREY S MUIR VICE PRESIDENT AND GENERAL COUNSEL SAID T2 HAD RECEIVED A DOCUMENT REQUEST THAT THE COMPANY COMPLIED WITH OVER A YEAR AGO NONE OF T2'S EXECUTIVES HAVE BEEN INTERVIEWED BY GOVERNMENT INVESTIGATORS HE SAID THE COMPANY HAS SAID ITS ACCOUNTING PROBLEMS EMERGED DURING AN INQUIRY BY THE BOARD'S AUDIT COMMITTEE WHICH IS CONTINUING AN OUTSIDE ATTORNEY FOR T2 SAID AN INDEPENDENT LAW FIRM WAS CALLED IN A FEW WEEKS AGO TO LOOK AT THE ACCOUNTING MATTERS COMPANY OFFICIALS REFUSED TO BE INTERVIEWED AT T2'S SUBURBAN ATLANTA HEADQUARTERS AUDITORS OFFICERS AND DIRECTORS WORKED OVER THE WEEKEND BUT CHAIRMAN THOMAS E HAIRE DECLINED TO DISCUSS COMPANY PROBLEMS IT'S A SITUATION THAT NEEDS TO BE HANDLED WITH KID GLOVES HE SAID THE COMPANY COFOUNDED IN 1984 BY MR HAIRE AND TOMMY H CARTER BOTH FORMER BAXTER INTERNATIONAL MEDICAL SUPPLY SALESMEN WAS BUILT ON ITS RELATIONS WITH DOCTORS IT WOULD RECRUIT ONCOLOGISTS AND OTHER PHYSICIANS WHO PRESCRIBE OUTPATIENT INTRAVENOUS INFUSION THERAPY AND HELPED THEM START THEIR OWN THERAPY CENTERS WHICH T2 WOULD THEN MANAGE FOR A FEE ONCE THE CENTERS TO WHICH DOCTORS OFTEN REFERRED THEIR OWN PATIENTS WERE SUCCESSFUL T2 TYPICALLY WOULD BUY THEM OUT PAYING MOSTLY RESTRICTED T2 STOCK THAT THEY HAD TO HOLD FOR TWO YEARS SOME OF T2'S DOCTORINVESTORS WERE TREATED TO TRIPS TO RESORTS IN ARIZONA AND FLORIDA ACCORDING TO MARGARET MCCRAE AN ONCOLOGIST IN BLOOMINGTON MINN WHO RECENTLY SOLD T2 STOCK VALUED AT 62000 DR MCCRAE SAID T2 WOULD PAY FOR STEAK DINNERS GOLF HORSEBACK RIDING AND LIVE BANDS AS WELL AS AIR FARE AND ACCOMMODATIONS SHE WENT ON ONE SUCH TRIP TO SCOTTSDALE ARIZ LAST YEAR SHE SAYS LATELY COMPANY AFFAIRS HAD GOTTEN A LOT LESS EXTRAVAGANT A SESSION T2 HOSTED FOR SOME DOCTORINVESTORS IN ST PAUL MINN TWO WEEKS AGO WAS HELD AT A SHERATON HOTEL THE FARE WAS SOUP AND SALAD ACCORDING TO ONE ONCOLOGIST WHO ATTENDED THE PURPOSE OF THE MEETING WAS TO ANSWER QUESTIONS FOR DOCTORS WHOSE STOCK HAD BECOME AVAILABLE FOR SALE THEY DIDN'T SAY ANYTHING ABOUT ANY ACCOUNTING IRREGULARITIES SAID THE ONCOLOGIST WHO ATTENDED THE MEETING AND NOW SAYS HE'S SORRY HE HELD ON TO HIS STOCK MAYBE WE WEREN'T SOPHISTICATED ENOUGH TO ASK THE RIGHT QUESTIONS 9308160061 930816 BUSINESS BRIEF PROVIDENTIAL CORP SECONDQUARTER LOSS POSTED 1STPERIOD RESULTS RESTATED PROVIDENTIAL CORP POSTED A 32 MILLION SECONDQUARTER LOSS BECAUSE OF AN ACCOUNTING CHANGE AND RESTATED ITS FIRSTQUARTER RESULTS THE LOSS EQUAL TO 53 CENTS A SHARE COMPARED WITH NET INCOME OF 60940 OR A PENNY A SHARE A YEAR EARLIER IN THIS YEAR'S FIRST QUARTER THE COMPANY HAD A RESTATED NET LOSS OF 57 MILLION OR 94 CENTS A SHARE VS PREVIOUSLY REPORTED PROFIT OF 277670 OR FIVE CENTS A SHARE IN 1992'S FIRST PERIOD THE COMPANY EARNED 691210 OR 21 CENTS A SHARE THUS FOR THE FIRST HALF PROVIDENTIAL HAD A LOSS OF ALMOST 9 MILLION OR 147 A SHARE AGAINST NET OF 752150 OR 16 CENTS A SHARE A YEAR AGO WITH MORE SHARES OUTSTANDING THE SAN FRANCISCOBASED COMPANY WHICH SELLS SOCALLED REVERSE MORTGAGES FOR THE ELDERLY SAID THE NEW ACCOUNTING METHOD WILL ENABLE IT TO CONTINUOUSLY ADJUST THE YIELD ON ITS MORTGAGES TO REFLECT VARIOUS CHANGES SUCH AS PREPAYMENT RATES 9308160060 930816 BUSINESS BRIEF BANCO ESPANOL DE CREDITO LOANLOSS PROVISIONS ABSORB FIRSTHALF OPERATING PROFIT SPAIN'S BANCO ESPANOL DE CREDITO INCLUDING ITS INDUSTRIAL HOLDING COMPANY LA CORPORACION BANESTO SAID IT CHANNELED ITS ENTIRE FIRSTHALF OPERATING PROFIT INTO LOANLOSS PROVISIONS THE DECISION MEANT BANCO ESPANOL DE CREDITO'S FIRSTHALF PRETAX RESULTS PLUNGED INTO THE RED FOR A CONSOLIDATED LOSS OF 130 MILLION PESETAS 914940 IN THE YEAREARLIER PERIOD IT REPORTED A PRETAX PROFIT OF 3271 BILLION PESETAS 2302 MILLION OPERATING PROFIT WAS 5265 BILLION PESETAS IN THE HALF DOWN 10 FROM YEAREARLIER 5871 BILLION PESETAS LOANLOSS PROVISIONS MORE THAN TRIPLED TO 5286 BILLION PESETAS FROM 164 BILLION PESETAS THE COMPANY PLANS TO CONTINUE THROUGH THE END OF THE YEAR ITS POLICY OF CHANNELING PROFIT TOWARD LOANLOSS PROVISIONS BUT THAT DOESN'T MEAN NO DIVIDENDS WILL BE PAID A SPOKESMAN SAID 9308160059 930816 A MALAYSIAN JAILED IN HONG KONG SCAM WILL TASTE FREEDOM QUESTIONS LINGER REGARDING 1983 COLLAPSE OF CARRIAN BANK BUMIPUTRA'S LOANS BY CRAIG S SMITH STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG THIRTEEN YEARS AFTER CONSPIRING TO DEFRAUD THE HONG KONG BRANCH OF A MALAYSIAN BANK OF 292 MILLION NONE OF WHICH WAS EVER RECOVERED LORRAINE ESME OSMAN IS FREE TO RETURN TO ENGLAND THIS WEEK MR OSMAN 62 YEARS OLD WAS EXTRADITED TO HONG KONG IN DECEMBER AFTER FIGHTING THE MOVE FOR SEVEN YEARS IN BRITAIN HE PLEADED GUILTY TO THE CONSPIRACY CHARGE IN JUNE AND WAS SENTENCED TO ONE YEAR IN PRISON HERE THE TERM WAS DEEMED TO HAVE BEGUN WHEN HE WAS JAILED HERE IN DECEMBER AND HE WAS ELIGIBLE FOR RELEASE AFTER SERVING TWOTHIRDS OF HIS TIME WITH HIM WILL LEAVE THE ANSWERS TO A LONG LIST OF QUESTIONS MANY IN HONG KONG HAVE ASKED YEARS SINCE MR OSMAN MADE THE UNSECURED LOANS TO A SHELL COMPANY OWNED BY ENTREPRENEUR GEORGE TAN THE LOANS BECAME THE CENTERPIECE OF A SCANDAL SURROUNDING THE 1983 COLLAPSE OF MR TAN'S CARRIAN GROUP HONG KONG'S MOST NOTORIOUS BUSINESS FIASCO OF RECENT YEARS IN THE MIDST OF THE CRISIS A MALAYSIAN AUDITOR LOOKING INTO THE LOANS WAS MURDERED AND A LEGAL ADVISER TO CARRIAN WAS LATER FOUND AT THE BOTTOM OF A SWIMMING POOL WITH A CONCRETE MANHOLE COVER TIED AROUND HIS NECK THE SAGA IS UNLIKELY TO BE RENDERED ANY CLEARER BY MR OSMAN WHO ISN'T TALKING EITHER TO THE PRESS OR TO THE COURTS HE DIDN'T SPEAK DURING HIS HEARINGS BEFORE HONG KONG'S HIGH COURT OF JUSTICE IN JUNE AND ISN'T DUE TO TESTIFY IN MR TAN'S PENDING TRIAL ON SIMILAR CHARGES THE ORIGINAL CARRIAN TRIAL IN WHICH MR TAN WAS CHARGED WITH FRAUD ENDED IN 1987 AFTER 287 DAYS WHEN A HONG KONG JUDGE PREEMPTED THE JURY AND DECLARED THAT THERE WAS NO CASE TO ANSWER ALTHOUGH HONG KONG'S COURT OF APPEAL RULED THAT THE JUDGE ERRED IN MAKING THAT DECLARATION THE COLONY'S JUSTICE SYSTEM PRECLUDED A RETRIAL IT'S UNCLEAR WHEN MR TAN WILL STAND TRIAL ON SEPARATE CHARGES ORIGINALLY IT WAS BELIEVED THAT HIS TRIAL HAD BEEN DELAYED BECAUSE THE GOVERNMENT WANTED TO TRY HIM WITH MR OSMAN NOW HOWEVER THE GOVERNMENT SAYS IT NEEDS MORE TIME TO GATHER EVIDENCE SURROUNDING EVENTS THAT TOOK PLACE MORE THAN A DECADE AGO MR TAN REMAINS FREE ON BAIL IN JUNE HONG KONG DROPPED 15 ADDITIONAL CHARGES AGAINST MR OSMAN INCLUDING AN ALLEGATION THAT HE HAD RECEIVED MILLIONS OF DOLLARS FROM MR TAN FOR MAKING THE ILLFATED LOANS MR OSMAN HAS MAINTAINED THAT ANY MONEY HE RECEIVED FROM MR TAN WAS INVESTED IN MALAYSIA ON MR TAN'S BEHALF MR OSMAN'S OWN ASSETS IN MALAYSIA HAVE BEEN FROZEN BY CIVIL PROCEEDINGS THERE WHILE MR OSMAN IS EXPECTED TO BE RELEASED FROM STANLEY PRISON TODAY THE EXACT TIMING HASN'T BEEN MADE PUBLIC HE IS LIKELY TO BE DRIVEN DIRECTLY TO KAI TAK AIRPORT AND PUT ON A FLIGHT TO LONDON WHERE HE HAS A WIFE AND 18YEAROLD DAUGHTER MR OSMAN A MALAYSIAN HAS RIGHT OF ABODE IN THE UK IN THE LATE 1970S THE MALAYSIAN GOVERNMENT ESTABLISHED BANK BUMIPUTRA MALAYSIA BHD FOR THE BENEFIT OF INDIGENOUS MALAYS KNOWN AS THE BUMIPUTRAS MR OSMAN WAS A FOUNDING DIRECTOR OF THE BANK AND BECAME CHAIRMAN OF ITS HONG KONG SUBSIDIARY BUMIPUTRA MALAYSIA FINANCE LTD IN 1977 WHILE THE ORIGINAL CHARGES AGAINST HIM INVOLVED 800 MILLION IN UNRECOVERED LOANS MADE BY BUMIPUTRA MALAYSIA FINANCE MR OSMAN PLEADED GUILTY TO ADVANCING 292 MILLION TO PLESSEY INVESTMENT LTD A HONG KONG COMPANY THAT WAS CONTROLLED BY MR TAN AND THAT HAD NO APPARENT BUSINESS MR TAN USED MUCH OF THE MONEY RECEIVED BETWEEN DECEMBER 1979 AND JUNE 1980 TO BUILD A REALESTATE EMPIRE THAT EMPIRE COLLAPSED AFTER THE 1982 CRASH IN HONG KONG PROPERTY PRICES IN 1983 AN INTERNAL AUDITOR SENT BY BANK BUMIPUTRA TO DETERMINE THE BANK'S TRUE EXPOSURE TO MR TAN'S CRUMBLING EMPIRE WAS MURDERED IN THE REGENT HOTEL A MALAYSIAN BUSINESSMAN WAS LATER ARRESTED AND JAILED FOR THE MURDER MR OSMAN WHO WAS RESIDING IN MALAYSIA AT THE TIME FLED TO SINGAPORE AND THEN LONDON SAYING THAT HE TOO HAD RECEIVED DEATH THREATS IN 1984 JOHN WIMBUSH A SENIOR PARTNER AT DEACONS A LEADING HONG KONG LAW FIRM THAT ACTED AS LEGAL ADVISER TO CARRIAN WAS FOUND DROWNED IN HIS SWIMMING POOL HONG KONG'S COMMERCIAL CRIME BUREAU HAD BEEN PREPARING TO INTERVIEW MR WIMBUSH IN RELATION TO THE CARRIAN COLLAPSE HIS DEATH WAS RULED A SUICIDE MR OSMAN WAS ARRESTED AT HIS HOME IN LONDON IN DECEMBER 1985 AND HAS BEEN IN JAIL SINCE THEN AFTER HE WAS EXTRADITED TO HONG KONG HIS LAWYERS PRESENTED HIM AS A MAN BROKEN BY YEARS OF INCARCERATION WHO CRIES FREQUENTLY AND SUFFERS VIVID STRESSFUL DREAMS HE IS REPORTED TO HAVE A WEAK HEART AND TO HAVE SUFFERED AT LEAST ONE MILD STROKE WHICH THE HONG KONG GOVERNMENT APPARENTLY TOOK INTO CONSIDERATION IN SENTENCING HIM THE MAXIMUM SENTENCE HE FACED ON THE CHARGE OF CONSPIRACY WAS SEVEN YEARS IN JAIL BUT HE COULD HAVE BEEN SENTENCED TO MUCH MORE TIME HAD HE BEEN FOUND GUILTY OF THE OTHER CHARGES HE ORIGINALLY FACED JUSTICE MORTIMER WHO PRESIDED OVER HIS TWODAY TRIAL IN JUNE SENTENCED HIM TO ONE YEAR CITING MR OSMAN'S GUILTY PLEA AND THE TIME SPENT IN JAIL IN THE UK 9308160058 930816 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT APLUS COMMUNICATIONS INC INITIAL 33 MILLION SHARES 28 MILLION BY THE COMPANY VIA PRUDENTIAL SECURITIES INC BED BATH & BEYOND INC SECONDARY OFFERING OF 4 MILLION SHARES 32 MILLION IN THE US VIA GOLDMAN SACHS & CO CFI PROSERVICES INC INITIAL 18 MILLION SHARES 15 MILLION BY THE COMPANY VIA HAMBRECHT & QUIST INC GYMBOREE CORP SECONDARY OFFERING OF 35 MILLION SHARES VIA GOLDMAN SACHS HEALTHSOURCE INC 2 MILLION SHARES 18 MILLION BY THE COMPANY VIA GOLDMAN SACHS IRT PROPERTY CO 4 MILLION SHARES VIA MERRILL LYNCH & CO KOHL'S CORP 5 MILLION SHARES VIA MORGAN STANLEY & CO KURZWEIL APPLIED INTELLIGENCE INC INITIAL 21 MILLION SHARES VIA ROBERTSON STEPHENS & CO LANDRY SEAFOOD INITIAL 2 MILLION SHARES VIA DEAN WITTER REYNOLDS INC LEVEL ONE COMMUNICATIONS INC INITIAL 2 MILLION SHARES 1 MILLION BY THE COMPANY VIA ALEX BROWN & SONS INC MICRO WAREHOUSE INC 27 MILLION SHARES VIA MONTGOMERY SECURITIES MULTICARE COS INITIAL 42 MILLION SHARES VIA MERRILL LYNCH NEUREX CORP INITIAL 3 MILLION CLASS A SHARES VIA LEHMAN BROTHERS AND KIDDER PEABODY & CO NINE WEST GROUP INC SECONDARY OFFERING OF 6 MILLION SHARES VIA MERRILL LYNCH PACIFIC INVESTMENT MANAGING CO COMMERCIAL MORTGAGE SECURITIES TRUST INC INITIAL 10 MILLION SHARES VIA LEHMAN BROTHERS PAINEWEBBER PREMIER INCOME FUND INITIAL 4 MILLION SHARES VIA PAINEWEBBER INC ROC COMMUNITIES INITIAL 55 MILLION SHARES OF BENEFICIAL INTEREST VIA KIDDER PEABODY SALOMON BROTHERS 2008 GOVERNMENT TERM TRUST INITIAL 6 MILLION SHARES VIA PRUDENTIAL SAUL CENTERS INC INITIAL 11 MILLION SHARES VIA SMITH BARNEY SHEARSON SCIENTIFIC GAMES HOLDINGS CORP INITIAL 25 MILLION SHARES VIA ROBINSONHUMPHREY CO SPSS INC INITIAL 2 MILLION SHARES VIA HAMBRECHT & QUIST TEXAS MERIDIAN RESOURCES CORP 4 MILLION SHARES 3 MILLION BY THE COMPANY VIA BEAR STEARNS & CO TOWN & COUNTRY TRUST INITIAL 10 MILLION SHARES VIA GOLDMAN SACHS TRANSKARYOTIC THERAPIES INC INITIAL 25 MILLION SHARES VIA LEHMAN BROTHERS TRICORD SYSTEMS 28 MILLION SHARES VIA SMITH BARNEY SHEARSON WASHINGTON NATIONAL CORP 2 MILLION SHARES VIA SMITH BARNEY SHEARSON WESTERN RESOURCES INC 46 MILLION SHARES VIA SMITH BARNEY SHEARSON METROPOLITAN ATLANTA RAPID TRANSIT AUTHORITY GA 150 MILLION OF SERIES 1993A BONDS VIA COMPETITIVE BID PENNSYLVANIA 242 MILLION OF THIRD SERIES OF 1993 GENERAL OBLIGATION BONDS VIA COMPETITIVE BID SAN ANTONIO TEXAS 1007 MILLION OF VARIOUS SERIES 1993 BONDS VIA COMPETITIVE BID BROWARD COUNTY FLA 130 MILLION OF WATER AND SEWER REFUNDING BONDS VIA A BEAR STEARNS GROUP INDIANA STATE OFFICE BUILDING COMMISSION 175 MILLION OF BONDS VIA A BEAR STEARNS GROUP LOS ANGELES COUNTY PUBLIC WORKS FINANCE AUTHORITY 235 MILLION OF BONDS FOR THE FLOOD CONTROL DISTRICT VIA A MERRILL LYNCH GROUP NEW ENGLAND EDUCATION LOAN MARKETING CORP 100 MILLION OF 1993 SERIES G STUDENT LOAN REFUNDING BONDS VIA A SMITH BARNEY SHEARSON GROUP SACRAMENTO CITY FINANCING AUTHORITY CALIF 230 MILLION OF SERIES 1993 REVENUE REFUNDING BONDS VIA A GRIGSBY BRANDFORD & CO GROUP SARASOTA COUNTY SCHOOL BOARD FLA 115 MILLION OF LEASE REVENUE REFUNDING BONDS VIA A MERRILL LYNCH GROUP 9308160057 930816 BUSINESS BRIEF CIE DE SUEZ SA GROUP CONSOLIDATED REVENUE DROPPED SLIGHTLY IN 1ST HALF FRENCH FINANCIAL AND INDUSTRIAL GROUP CIE DE SUEZ SA REPORTED FIRSTHALF GROUP CONSOLIDATED REVENUE FELL SLIGHTLY LESS THAN 1 TO 8986 BILLION FRANCS 1489 BILLION FROM A YEAREARLIER 9051 BILLION FRANCS THE COMPANY SAID THAT THE 1992 FIGURE WAS ADJUSTED TO MAKE IT COMPARABLE WITH THIS YEAR'S FIRSTHALF FIGURE BUT DIDN'T SPECIFY THE NATURE OF THE ADJUSTMENT CIE DE SUEZ MADE THE ANNOUNCEMENT IN A REQUIRED STANDARD LEGAL FILING ON ITS FINANCES IN THE BULLETIN DES ANNONCES LEGALES OBLIGATOIRES 9308160056 930816 BUSINESS BRIEF ARNOLDO MONDADORI EDITORE SPA REVENUE ROSE 10 FOR HALF MERGER PLAN IS ANNOUNCED ITALIAN PUBLISHER ARNOLDO MONDADORI EDITORE SPA SAID FIRSTHALF CONSOLIDATED REVENUE ROSE 10 TO 919 BILLION LIRE 5668 MILLION FROM 837 BILLION LIRE IN THE YEAREARLIER PERIOD THE RESULTS WERE ANNOUNCED IN ADVERTISEMENTS PLACED BY SILVIO BERLUSCONI EDITORE SPA PART THE FININVEST SPA GROUP THAT DETAIL A PLANNED MERGER OF MONDADORI AND SBE MONDADORI TRADES PUBLICLY BUT ITS MAJORITY OWNER IS ALSO THE CLOSELY HELD FININVEST THE HOLDING COMPANY OF ITALIAN MEDIA TYCOON SILVIO BERLUSCONI THE DEAL ATTRIBUTES A VALUE OF 15000 LIRE 925 TO MONDADORI ORDINARY SHARES WHICH WERE TRADING FRIDAY AT 13300 LIRE ONCE THE MERGER IS COMPLETE MONDADORI WILL NO LONGER BE LISTED ON THE MILAN EXCHANGE HOWEVER SBE HAS SAID IT PLANS TO THEN SEEK AN EXCHANGE LISTING 9308160055 930816 BUSINESS BRIEF L'OREAL SA REVENUE DURING FIRST HALF IMPROVED 7 TO 346 BILLION FRENCH COSMETICS AND PHARMACEUTICALS GROUP L'OREAL SA REPORTED A 7 IMPROVEMENT IN GROUP FIRSTHALF CONSOLIDATED REVENUE TO 2089 BILLION FRANCS 346 BILLION FROM AN ADJUSTED 1951 BILLION FRANCS IN THE YEAREARLIER HALF THE COMPANY SAID THE 1992 FIGURE WAS ADJUSTED TO COMPENSATE FOR STRUCTURAL CHANGES AND FOREIGNEXCHANGE FLUCTUATIONS L'OREAL MADE THE ANNOUNCEMENT IN A REQUIRED STANDARD LEGAL FILING ON ITS FINANCES IN THE BULLETIN DES ANNONCES LEGALES OBLIGATOIRES 9308160053 930816 PEPPERAND SALT TO A BOLDNESS SEMINAR AND SELFASSERTIVE I THINK JUST DOESN'T SHUT UP 9308160052 930816 BUSINESS BRIEF STORA AB TALKS ARE UNDER WAY TO SELL TARKETT TO CAPITAL PARTNERS SWEDISH PAPER AND PULP COMPANY STORA AB IS IN TALKS TO SELL ITS TARKETT SUBSIDIARY TO BRITAIN'S CAPITAL PARTNERS LTD THE COMPANY SAID THE PRICE UNDER DISCUSSION IS 343 BILLION KRONOR 4209 MILLION STORA SAID TARKETT IS A FLOORING MAKER WITH 1992 OPERATING PROFIT 66 MILLION KRONOR 326 MILLION ANALYSTS CALLED THE TALKS GOOD NEWS SAYING SUCH A MOVE WOULD ALLOW STORA TO CONCENTRATE ON CORE ACTIVITIES THE UNIT REALLY DOES NOT FIT INTO ITS BUSINESS STRUCTURE A STOCKHOLM ANALYST SAID ACCORDING TO INGVAR PETERSSON STORA FIRST EXECUTIVE VICE PRESIDENT THE PLANNED DIVESTMENT REFLECTS STORA'S DRIVE TO CONSOLIDATE OPERATIONS ADDING THAT IT WOULD ALSO REDUCE ITS DEBT BURDEN STORA ORIGINALLY ANNOUNCED ITS INTENTION TO SELL THE UNIT IN 1990 BUT PLANS STALLED DUE TO DIFFICULTIES IN FINDING A SUITABLE BUYER 9308160051 930816 DIVIDEND NEWS NAB ASSET CORP NAB ASSET CORP HOUSTON SAID IT WOULD PAY A CASH DISTRIBUTION OF 1 A COMMON SHARE PAYABLE AUG 30 TO SHARES OF RECORD AUG 20 THE BANKING CONCERN SAID IT PAYS SUCH DISTRIBUTIONS IRREGULARLY AND LAST PAID 1 A SHARE ON JULY 30 9308160050 930816 NOT GUILTY COLLAPSE OF THE CASE AGAINST ALTMAN MOVES BCCI FOCUS OVERSEAS DAMAGE OF BANKING SCANDAL HAS BEEN SLIGHT IN US WAS LAWYER FAIR TARGET RESTORATION OF REPUTATIONS BY WADE LAMBERT AND JONATHAN M MOSES STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK YOU COULD TELL THIS WAS GOING TO BE A PECULIAR BANKFRAUD TRIAL BY WHO WASN'T PACKING THE GALLERIES THE WINDOWLESS MANHATTAN COURTROOM WHERE WASHINGTON LAWYER ROBERT ALTMAN WAS TRIED AND WHERE HE WAS ACQUITTED SATURDAY ATTRACTED NO BITTER BANK DEPOSITORS NO ONE ACCUSED MR ALTMAN OF STEALING THE LIFE SAVINGS OF WIDOWS AND PENSIONERS MORE SHOWED UP TO GLIMPSE HIS WIFE ACTRESS LYNDA CARTER THAN TO WITNESS WHAT PROSECUTORS HAD BILLED AS ONE OF THE MOST SIGNIFICANT BANKFRAUD CASES EVER INVOLVING THE BIGGEST ROGUE BANK EVER BCCI IN TRUTH IT TURNED OUT NOT TO BE THE CASE IT WAS CRACKED UP TO BE TO BE SURE THE BCCI AFFAIR HAS BEEN A BONA FIDE WORLDWIDE SCANDAL WHEN THE BANK OF CREDIT & COMMERCE INTERNATIONAL COLLAPSED IN 1991 REGULATORS FOUND THAT MORE THAN 12 BILLION IN DEPOSITORS' FUNDS HAD DISAPPEARED MONEY LAUNDERING PUBLIC CORRUPTION AND DRUG TRAFFICKING APPEARED TO BE INVOLVED THERE WERE VICTIMS APLENTY INCLUDING ABOUT ONE MILLION DEPOSITORS MAINLY IN THIRD WORLD COUNTRIES AND IN ENGLAND CENTRAL BANKS WERE SHAKEN AND FINGERS BEGAN POINTING NEARLY EVERYWHERE IN THE US THE FINGER POINTED AT ROBERT ALTMAN 46 YEARS OLD AND HIS MORE CELEBRATED PARTNER 86YEAROLD CLARK CLIFFORD WHO HAD COUNSELED FIVE PRESIDENTS AND WRITTEN A BOOK ABOUT THE EXPERIENCE BECAUSE OF THE SUGGESTION THAT THE IMPOSING MR CLIFFORD WAS MORE CRIMINAL THAN STATESMAN THE CASE MAY HAVE BECOME AN EASY WAY FOR AMERICANS TO GET A HANDLE ON A SCANDAL OTHERWISE INVOLVING AN UNFAMILIAR CAST OF CHARACTERS FROM DISTANT LANDS IT ALSO PRESENTED AN OPPORTUNITY FOR NEW YORK DISTRICT ATTORNEY ROBERT MORGENTHAU WHO AT AGE 74 IS STILL ONE OF THE NATION'S MOST AGGRESSIVE LOCAL PROSECUTORS WITH A SHARP EYE FOR BIG COMPLEX CASES THAT MOST DISTRICT ATTORNEYS WOULD LEAVE TO FEDERAL OFFICIALS HE PUSHED THE INVESTIGATION HARDER THAN DID HIS FEDERAL COUNTERPARTS AND OUTMANEUVERED THEM TO GET THE CASE TRIED IN NEW YORK RATHER THAN IN WASHINGTON BUT FROM A GLOBAL PERSPECTIVE THE CASE AGAINST THE TWO WASHINGTON LAWYERS WAS A FAR DIFFERENT AND FAR SMALLER MATTER THAN REGULATORS AND LIQUIDATORS WERE GRAPPLING WITH ABROAD MESSRS CLIFFORD AND ALTMAN HAD BEEN THE TWO TOP OFFICERS OF WASHINGTONBASED FIRST AMERICAN BANKSHARES INC AND ALSO BCCI'S MAIN ATTORNEYS IN THE US PROSECUTORS SAID THAT BCCI A UNIT OF BCCI HOLDINGS LUXEMBOURG SA USED FRONT MEN TO GAIN CONTROL OF FIRST AMERICAN ILLEGALLY IT WAS THE GOVERNMENT'S POSITION THAT MESSRS ALTMAN AND CLIFFORD NOT ONLY WERE AWARE OF THE TAKEOVER BUT HAD ACCEPTED MILLIONS OF DOLLARS IN BRIBES DISGUISED AS LEGAL FEES AND INVESTMENT PROFITS TO LIE TO REGULATORS ABOUT BCCI'S ROLE THE TWO WERE TO BE TRIED TOGETHER BUT MR CLIFFORD'S TRIAL WAS PUT OFF INDEFINITELY BECAUSE OF HIS ILL HEALTH THE EIGHT FELONY CHARGES MR ALTMAN FACED WHEN THE TRIAL BEGAN WERE SERIOUS INDEED ESPECIALLY TO A PUBLIC SENSITIZED BY SCANDALS INVOLVING ABUSES OF POWER IN WASHINGTON COMMERCIAL BRIBERY SCHEMING TO DEFRAUD AND SIX COUNTS OF FILING FALSE DOCUMENTS WITH REGULATORS BEFORE GIVING THE CASE TO THE JURY THE JUDGE DISMISSED THREE OF THE FALSE FILING COUNTS AND THE COMMERCIALBRIBERY CHARGE LEAVING ONLY FOUR COUNTS TO THE JURY IN PARING THE CHARGES JUDGE JOHN AK BRADLEY SAID THERE WAS NO EVIDENCE THAT MR ALTMAN HAD RECEIVED BRIBES WHICH THE PROSECUTION HAD PRESENTED AS THE KEY MOTIVATION FOR THE ALLEGED SCHEME RESPONDING TO THE VERDICT A SPOKESMAN FOR MR MORGENTHAU SAID THERE IS SOME SORT OF FEELING AFOOT THAT WE HAVE TO DEFEND OURSELVES WE HAVE DONE NOTHING THAT WE HAVE TO DEFEND WE ABIDED BY THE LEGAL PROCESS THIS IS HOW THE LEGAL PROCESS WORKS YOU GATHER EVIDENCE PRESENT IT TO A JURY AND THEY REACH A VERDICT AT THE VERY LEAST MR MORGENTHAU'S DOGGED INVESTIGATION HAS BEEN WIDELY CREDITED WITH PUSHING OTHER AGENCIES AROUND THE WORLD TO TAKE STEPS AGAINST BCCI IF ONLY TO AVOID BEING SHOWN UP BY THE MANHATTAN DISTRICT ATTORNEY THE SURFACE PROBLEM WITH THE CASE IT TURNED OUT WAS THAT THERE WAS NO SMOKING GUN THAT PROVED EITHER THAT THE LEGAL FEES WERE UNLAWFUL OR THAT THE AMERICAN LAWYERS WERE AWARE OF BCCI'S SHADOWY ROLE THE EVIDENCE WAS CIRCUMSTANTIAL AND KEY WITNESSES AGAINST THE DEFENDANT WERE HIGHLY SUSPECT BCCI INSIDERS THE DEEPER PROBLEM WAS THAT BCCI'S SECRET CONTROL IF IT EXISTED HADN'T LED TO THE LOOTING OF FIRST AMERICAN WHICH ACTUALLY GREW DURING THIS PERIOD AND REMAINED HEALTHY SO IF A CRIME HAD OCCURRED IT WAS A VICTIMLESS ONE IN A MUCH BROADER SCANDAL IN WHICH VICTIMS ABOUNDED THAT IS WHY THE CASE ATTRACTED VIRTUALLY NO INTEREST ABROAD WHERE TITILLATION OVER THE POSSIBLE DISCREDITING OF MR CLIFFORD WAS MINIMAL AND WHERE ANGUISH OVER BCCI AND ITS TRUE VICTIMS WAS INTENSE THE CRIMINAL ASPECTS OF THE CASE IN THE US WERE THE TAIL WAGGING THE DOG THAT'S THE WAY THE REST OF THE WORLD SAW IT SAYS KENNETH A CARUSO OF NEW YORK LAW FIRM SHEARMAN & STERLING WHO REPRESENTS THE WORLDWIDE LIQUIDATORS OF BCCI MUCH OF THE US OFFICIAL ACTIVITY INVOLVING BCCI HAS PROVED TO BE LARGELY BESIDE THE POINT IN DECEMBER 1991 MR MORGENTHAU'S OFFICE AND THE FEDERAL RESERVE PRESSURED BCCI'S LIQUIDATORS INTO FORFEITING THE BANK'S 550 MILLION IN ASSETS IN THE US AS PART OF A BROAD CRIMINAL AND CIVIL SETTLEMENT THE MONEY WAS INTENDED TO COVER THE COSTS OF THE FEARED FAILURE OF FIRST AMERICAN AND OF TWO SMALLER BANKS THAT BCCI ALLEGEDLY CONTROLLED WHILE IT WAS A PUBLICRELATIONS COUP FOR US LAW ENFORCEMENT THE HAUL FAR EXCEEDED EVEN THE WILDEST CURRENT ESTIMATES OF VALID US CLAIMS FIRST AMERICAN'S ASSETS MORE THAN COVERED ITS LIABILITIES WHEN THE BANK WAS SOLD IN JUNE FOR 453 MILLION AND THE ONLY BIG US CLAIM CURRENTLY GIVEN MUCH CREDENCE IS THE 100 MILLIONPLUS THAT THE FEDERAL DEPOSIT INSURANCE CORP IS EXPECTED TO SEEK FOR INDEPENDENCE BANK OF ENCINO CALIF WHICH BCCI SECRETLY CONTROLLED EVEN IN THAT CASE THOUGH IT ISN'T CLEAR WHETHER BCCI'S INVOLVEMENT WAS AT THE ROOT OF THE PROBLEMS FACED BY THE POORLY MANAGED BANK OTHER POSSIBLE CLAIMANTS INCLUDE VARIOUS STATE INSURANCE REGULATORS AND OTHER AGENCIES THAT ACCUSE BCCI OF ACTING ILLEGALLY IN THE US THE SETTLEMENT MONEY ALSO WILL COVER THE MULTIMILLION DOLLAR COST OF INVESTIGATIONS BY MR MORGENTHAU'S OFFICE AND OTHER LAWENFORCEMENT AGENCIES EVEN SO SOME ESTIMATES SAY THE SETTLEMENT FUNDS WILL END UP HUNDREDS OF MILLIONS OF DOLLARS IN THE BLACK HALF OF THIS BALANCE EVENTUALLY WILL GO TO THE WORLDWIDE LIQUIDATORS BUT THE REST IS TO BE DISTRIBUTED AT THE DISCRETION OF THE US ATTORNEY GENERAL UNDER THE CIRCUMSTANCES LAWYERS FOR THE LIQUIDATORS QUESTION WHETHER LAWENFORCEMENT OFFICIALS IN THE US HAVE HAD THE BEST INTEREST OF BCCI'S VICTIMS AT HEART WHO DESERVES TO BE PAID OUT OF BCCI ASSETS VICTIMS WHO WERE INNOCENT DEPOSITORS OR SHOULD THE MONEY BE USED TO PAY FINES TO GOVERNMENT AGENCIES TO DETER A COMPANY THAT NO LONGER EXISTS ASKS ONE SUCH ATTORNEY WHO DIDN'T WANT TO BE IDENTIFIED IN ANY EVENT THE ALTMAN CRIMINAL PROSECUTION IN THE US SEEMS TO HAVE DIVERTED ATTENTION FROM THE BROADER ISSUES THAT THE SCANDAL RAISED NO ONE HAS YET ANSWERED THE BASIC QUESTION OF HOW THE BCCI SCHEME COULD SPREAD SO WIDELY BEFORE BEING STOPPED AND MORE IMPORTANTLY WHERE THE BILLIONS OF DOLLARS WENT AND NO ONE HAS FIGURED OUT HOW TO COMPENSATE ALL OF THE VICTIMS FOR ALL OF THEIR LOSSES MANY BCCI DEPOSITORS IN THE UNITED KINGDOM FOR EXAMPLE AREN'T EXPECTED TO RECEIVE MORE THAN 30 TO 40 CENTS ON THE DOLLAR FOR THEIR ACCOUNTS DEPOSITORS IN SEVERAL THIRD WORLD COUNTRIES WHERE BCCI DID MUCH OF ITS BUSINESS WILL RECEIVE EVEN LESS ABOUT THE TIME THAT JURY SELECTION BEGAN IN NEW YORK LAST MARCH TWO DESPERATE CREDITORS IN LONDON BEGAN A HUNGER STRIKE AND HALFWAY THROUGH THE ALTMAN CASE A THOUSAND CREDITORS OF BCCI TURNED OUT AT A MEETING IN LONDON NOT TO ASK ABOUT MR CLIFFORD BUT TO BEG OFFICIALS TO MOVE MORE QUICKLY TO HELP THEM THEY ACCUSED THE LIQUIDATORS OF SELLING OUT IN NEGOTIATIONS WITH BCCI'S MAJORITY SHAREHOLDERS MAINLY ABU DHABI RULER ZAYED BIN SULTAN ALNAHYAN CRITICISM ABROAD ALSO HAS BEGUN TO MOUNT OVER THE FEES RACKED UP BY THE LIQUIDATORS AND THEIR LAWYERS THE LIQUIDATORS' RECOVERY EFFORT OVERSEEN BY ACCOUNTING FIRM TOUCHE ROSS & CO IS COSTING ABOUT 25 MILLION A MONTH IN THE FIRST YEAR AFTER THE COLLAPSE OF BCCI THE LIQUIDATORS SPENT A TOTAL OF 195 MILLION YET DESPITE ITS LIMITED IMPACT ON THE BCCI SCANDAL AS A WHOLE THE ALTMAN TRIAL WILL BE REMEMBERED IN LEGAL CIRCLES AS A POWERFUL CASE STUDY OF A PROSECUTION GONE AWRY ASSISTANT DISTRICT ATTORNEY JOHN MOSCOW ONE OF MR MORGENTHAU'S TOP FRAUD LITIGATORS SPENT FIVE MONTHS PUTTING 45 WITNESSES ON THE STAND AND INTRODUCING REAMS OF DOCUMENTS AS EVIDENCE IN THE PROCESS THE CASE THAT ONCE SOUNDED MORE THRILLING THAN A JOHN GRISHAM NOVEL WAS REDUCED TO A TEDIOUS MINDNUMBING SPAT OVER PAPERWORK THAT TRANSFORMATION SHOWED IN THE JURY BOX WHERE JURORS OCCASIONALLY DOZED OFF IN THE FACE OF THE PEOPLE VS ROBERT ALTMAN IN THE END MR MOSCOW WHO WAS OFTEN FIDGETY IN COURT WAS LEFT TO USING STRAINED ANALOGIES AND HUGE COMPLICATED CHARTS IN HIS EFFORT TO PROVE HIS CASE AT SEVERAL POINTS DURING HIS SUMMATION MR MOSCOW COMPARED BCCI TO A SHIP THE OWNERS WERE ON BOARD MR MOSCOW SAID BUT YOU DIDN'T SEE MUCH OF THEM BECAUSE THEY GAVE ORDERS TO THE CAPTAIN PRESUMABLY MR ALTMAN TO BOLSTER THAT POINT MR MOSCOW POINTED TO HUGE CHARTS ONE SHOWED ROBERT A ALTMAN AT THE CENTER OF A HONEYCOMB OF BCCIRELATED ENTITIES ANOTHER LISTED MR ALTMAN'S TELEPHONE CALLS TO BCCI BUT PROVIDED NO EVIDENCE ABOUT WHAT WAS SAID DURING THOSE CALLS MR ALTMAN'S DEFENSE TEAM OF ATTORNEYS GUSTAVE NEWMAN MITCHELL ETTINGER AND WILLIAM SHIELDS WAS WIDELY VIEWED BY COURT OBSERVERS AS HAVING OUTLAWYERED THE PROSECUTORS THE DEFENSE WAGED AN AGGRESSIVE CAMPAIGN OF CROSSEXAMINATION AND OBJECTIONS DURING MR MOSCOW'S MAIN CASE SOMETIMES RATTLING HIM AND THEN RESTED THEIR OWN CASE WITHOUT CALLING A SINGLE WITNESS TO THE STAND THEY ALSO MANAGED TO GET A JUROR DISMISSED BECAUSE SHE HAD SEEMED SYMPATHETIC TO MR MOSCOW MAKING EYES AT HIM THEY SAID AND MOUTHING HELLO TO HIM WHEN HE ENTERED THE COURT THE JURORS' FIRST TALLY WAS 93 TO ACQUIT AND THEY ACHIEVED UNANIMITY AFTER FOUR FULL DAYS OF DELIBERATIONS THEN THEY MADE IT CLEAR THAT THEY DIDN'T ONLY BELIEVE THE PROSECUTION HAD FAILED TO PROVE THEIR CASE THEY BELIEVED MR ALTMAN WAS UNQUESTIONABLY INNOCENT AS JURY FOREWOMAN BARBARA CONLEY PRONOUNCED NOT GUILTY FOUR TIMES TO EACH OF THE CHARGES SHE AND SEVERAL OTHER JURORS OPENLY WEPT AFTERWARDS MOST OF THE JURORS EMBRACED THE DEFENDANT WHO THEY SAID WAS HONEST AND HAD BEEN UNJUSTLY CHARGED THEY TOOK PHOTOS WITH HIM EXCHANGED ADDRESSES AND AGREED TO ATTEND HIS VICTORY PARTY SPORTING LIPSTICK MARKS FROM MS CARTER ON HIS CHEEK JUROR RICARDO PALACIO A COMPUTER OPERATOR AT THE INTERNAL REVENUE SERVICE DECLARED THIS MAN WAS INNOCENT FROM THE START JOHN SCHAAF A UPS DRIVER WHO WORE TSHIRTS THROUGH MOST OF THE TRIAL BUT PUT ON A SUIT AND TIE FOR THE VERDICT WAS CRITICAL OF THE PROSECUTION FOR PAYING A WITNESS 100000 FOR HIS TESTIMONY AGAINST MR ALTMAN I CAN'T JUSTIFY MY TAX DOLLARS SPENT THAT WAY ESPECIALLY IF THEY'RE GOING TO CONVICT AN INNOCENT MAN MR SCHAAF SAID NOW THAT MR ALTMAN HAS BEEN ACQUITTED IT IS CONSIDERED HIGHLY UNLIKELY THAT EITHER MR ALTMAN OR MR CLIFFORD WILL BE TRIED UNDER A RELATED BUT NARROWER FEDERAL INDICTMENT WE RESERVE THE RIGHT TO PROSECUTE BUT WE'LL REVIEW WHAT HAPPENED IN NEW YORK BEFORE DECIDING WHAT TO DO A JUSTICE DEPARTMENT SPOKESMAN SAID MR CLIFFORD'S FRAGILE HEALTH HE HAD A HEART ATTACK AFTER UNDERGOING QUADRUPLE BYPASS SURGERY COULD DIMINISH THE GOVERNMENT'S INCLINATION TO PURSUE HIM ANY FURTHER WHAT ABOUT THE REPUTATIONS OF MESSRS ALTMAN AND CLIFFORD THEY COULD STILL BE BATTERED SOMEWHAT BY BCCIRELATED CIVIL CASES INCLUDING FIRST AMERICAN'S OWN CLAIM THAT ITS REPUTATION AND THEREFORE ITS WORTH WERE HARMED BY THE BCCI CONNECTION BUT FOR THE PURPOSES OF HISTORY THE MOST MEMORABLE TEST MAY HAVE BEEN THE ONE THAT MR ALTMAN PASSED ON SATURDAY WHEN A CRIMINALCOURT JURY CLEARED HIM OF THE FOUR REMAINING CHARGES EVEN SO WHILE MR ALTMAN AND HIS FAMILY ARE ELATED AND MR CLIFFORD TOO FEELS VINDICATED THE DEAN OF WASHINGTON POWER BROKERS IS STILL BITTER ABOUT THE MORGENTHAU PROSECUTION NOW I'VE JUST BEEN THROUGH TWOANDAHALF YEARS OF HELL WHEN THERE WAS NOT A CLOUD ON MY NAME AFTER 65 YEARS OF PRACTICING LAW MR CLIFFORD SAYS IT'S BEEN VERY PAINFUL 9308160049 930816 BUSINESS BRIEF AMR CORP CODESHARE' ACCORD IS SIGNED WITH BRITISH MIDLAND AIR AMERICAN AIRLINES FORT WORTH TEXAS SAID IT SIGNED A CODESHARE AGREEMENT WITH BRITISH MIDLAND AIRWAYS ENABLING PASSENGERS OF THE AMR CORP UNIT TO MAKE CONNECTIONS THROUGH LONDON AND INTO EUROPE THE MOVE IS PART OF A TREND AMONG AIRLINES TOWARD GLOBAL ALLIANCES THE LARGEST OF WHICH WAS BRITISH AIRWAYS' 300 MILLION INVESTMENT IN USAIR GROUP INC EARLIER THIS YEAR AMERICAN WHICH OPPOSED THAT MOVE SAID AT THE TIME THAT IT WOULD BE FORCED TO SEEK ITS OWN ALLIANCES AMERICAN AND BRITISH MIDLAND WILL LIST AMERICAN'S CONNECTING FLIGHTS THROUGH LONDON UNDER A SINGLE FLIGHT NUMBER IN COMPUTER RESERVATION SYSTEMS THAT GIVES THE FLIGHTS A HIGHER PRIORITY IN RESERVATIONS COMPUTERS BRITISH MIDLAND SERVES A HANDFUL OF DESTINATIONS IN EUROPE AND HAS A SIMILAR CODESHARING ARRANGEMENT WITH AMERICAN'S ARCHRIVAL UNITED AIRLINES THAT PACT APPARENTLY WILL STAY IN PLACE 9308160048 930816 BUSINESS BRIEF FERROFLUIDICS CORP HOLDER FILES SUIT CHARGING DISCLOSURELAW VIOLATIONS FERROFLUIDICS CORP NASHUA NH SAID A SHAREHOLDER SUED IT IN US DISTRICT COURT IN CONCORD NH CHARGING IT WITH DISCLOSURELAW VIOLATIONS FERROFLUIDICS HAS DISCLOSED THAT THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING IT AND UNNAMED INVESTORS OVER SEVERAL ISSUES PART OF THE INVESTIGATION APPARENTLY GREW OUT OF A PAYMENT FERROFLUIDICS MADE TO A BROKERAGE FIRM AND AN ANALYST WHO PRODUCED A REPORT ON THE MAKER OF MAGNETIC FLUIDS USED IN BEARINGS POLLUTION CONTROL AND DISK DRIVES FERROFLUIDICS WHOSE DIRECTORS ARE CONDUCTING AN INVESTIGATION RELATED TO THE SEC ACTION SAID IT WILL VIGOROUSLY DEFEND THE LAWSUIT 9308160047 930816 WHO'S NEWS BALDWIN PIANO NAMES CASTRUCCI AS ITS CHAIRMAN BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL BALDWIN PIANO & ORGAN CO NAMED TWO DIRECTORS AND A CHAIRMAN LEAVING ONLY ONE INSIDER ON THE NOW SIXMEMBER BOARD GEORGE E CASTRUCCI 55 YEARS OLD A DIRECTOR SINCE 1987 WAS NAMED CHAIRMAN HE IS THE FORMER PRESIDENT AND CHIEF OPERATING OFFICER OF GREAT AMERICAN COMMUNICATIONS CO A BROADCASTING COMPANY WHOSE LARGEST SHAREHOLDER IS CINCINNATI FINANCIER CARL H LINDNER MR CASTRUCCI IS STILL A DIRECTOR OF GREAT AMERICAN COMMUNICATIONS IN OVERTHECOUNTER TRADING BALDWIN COMMON STOCK CLOSED FRIDAY AT 1725 UP 50 CENTS BALDWIN A CINCINNATI KEYBOARD INSTRUMENT MAKER WITH 110 MILLION IN 1992 SALES HAS BEEN SEARCHING FOR LEADERSHIP DURING THE PAST YEAR IN JANUARY THE COMPANY AGREED TO BE ACQUIRED FOR 62 MILLION BY PERIDOT ASSOCIATES INC A WEST PALM BEACH FLA INVESTMENT GROUP BUT PERIDOT HAD TROUBLE PUTTING THE TRANSACTION TOGETHER AND IT COLLAPSED IN MAY BALDWIN SUBSEQUENTLY ANNOUNCED A SECONDARY OFFERING OF 132 MILLION SHARES OF COMMON STOCK AT 1725 A SHARE THE TWO NEW DIRECTORS ARE ROGER L HOWE 58 CHAIRMAN OF US PRECISION LENS INC IN CINCINNATI AND HARRY A SHAW III 55 CHAIRMAN OF HUFFY CORP IN DAYTON OHIO MR HOWE SUCCEEDS HAROLD S SMITH 68 WHO RESIGNED AS A DIRECTOR AND AS PRESIDENT OF BALDWIN EFFECTIVE AUG 1 MR SHAW'S APPOINTMENT INCREASES THE NUMBER OF DIRECTORS TO SIX FROM FIVE ADDITIONALLY RS DICK HARRISON BALDWIN'S CHIEF EXECUTIVE OFFICER WAS GIVEN THE ADDED POST OF PRESIDENT MR HARRISON WHO REMAINS CEO RELINQUISHES THE TITLE OF CHAIRMAN TO MR CASTRUCCI IN AN INTERVIEW MR HARRISON SAID THAT HE IS THE ONLY INSIDER ON THE BOARD ADDING THAT THE PRESENCE OF SO MANY OUTSIDERS IS IN THE BEST INTEREST OF THE SHAREHOLDERS MR HARRISON SAID IT WAS HIS IDEA AND THAT OF THE DIRECTORS NOT THAT OF MAJOR SHAREHOLDERS TO WEIGH THE BOARD HEAVILY IN FAVOR OF OUTSIDERS BECAUSE I WANTED TO PUT TOGETHER THE BEST BOARD I COULD PUT MY HANDS ON TO ADVANCE THIS COMPANY FOCUS ON ELECTRONIC PIANO BALDWIN'S PLANS ARE TO ADVANCE OUR SALES MR HARRISON SAID WE INTEND TO DO THAT THROUGH INTERNATIONAL GROWTH BUT THE QUICKER WAY IS TO BECOME A FACTOR IN THE ELECTRONIC PIANO BUSINESS WHICH IS CURRENTLY ONLY 3 OF OUR SALES ELECTRONIC PIANOS APPEAL TO A WIDER RANGE OF AGE GROUPS THAN ACOUSTIC PIANOS WHICH ARE FAVORED BY FAMILIES WITH YOUNG CHILDREN HE SAID ANALYSTS BELIEVE BALDWIN ALSO SHOULD CONSIDER CUTTING COSTS THERE'S GOING TO BE A LOT MORE PRESSURE ON HARRISON TO PERFORM I THINK THEY NEED TO CONTROL COSTS AND EXPLORE INTERNATIONAL OPPORTUNITIES SAID ROBERT G MOSES ANALYST WITH MCDONALD & CO SECURITIES INC THEY'RE NOT IN A HUGE MARKET THAT'S GROWING 9308160046 930816 JAPAN BROKER'S RESCUE MAY AUGUR TREND BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE LONGPREDICTED SHAKEOUT IN JAPAN'S ENFEEBLED SECURITIES INDUSTRY MAY BE BEGINNING FRIDAY'S RESCUE BY A JAPANESE BANK OF A STRUGGLING JAPANESE SECURITIES FIRM AT A COST ESTIMATED AT 70 BILLION TO 80 BILLION YEN 683 MILLION TO 781 MILLION IS PROBABLY JUST THE FIRST OF MANY BAILOUTS TO COME IN THE NATION'S BROKERAGE INDUSTRY ANALYSTS SAY DAIWA BANK LTD SAID IT WOULD PROVIDE FUNDS TO COSMO SECURITIES CO IN EXCHANGE FOR AN EQUITY STAKE IN COSMO COSMO WHICH LIKE MOST JAPANESE BROKERAGE FIRMS RECORDED LARGE LOSSES IN ITS MOST RECENT REPORTING PERIOD HAD ALSO INCURRED A SPECIAL LOSS OF 698 BILLION YEN IN SOME OLD FINANCIAL SCANDALS ACCORDING TO THE MINISTRY OF FINANCE IN ALL ACCORDING TO THE MINISTRY COSMO HAD A NEGATIVE NET VALUE OF 71 BILLION YEN BEFORE DAIWA STEPPED IN COSMO IS JUST ONE OF MANY JAPANESE SECURITIES COMPANIES THAT HAVE BEEN BATTERED BY LOW TRADING VOLUME ON TOKYO'S STOCK EXCHANGE ANALYSTS SAY MORE RESCUES IN THE INDUSTRY ARE LIKELY GOVERNMENT OFFICIALS SAY DAIWA'S INJECTION OF FUNDS COULD LEAVE THE BANK WITH A MAJORITY STAKE IN COSMO A MIDSIZE BROKERAGE CONCERN EXISTING REGULATIONS PROHIBIT BANKS SUCH AS DAIWA FROM OWNING MORE THAN 5 OF A SECURITIES COMPANY BUT THE MINISTRY WAIVED THE RULES IN LIGHT OF COSMO'S PLIGHT DAIWA HELD A SMALL INTEREST IN COSMO BEFORE THE BAILOUT ESSENTIALLY THE GOVERNMENT IS CHANGING THE LAW SAID WALTER ALTHERR FINANCIAL ANALYST AT WI CARR LTD IT'S A BIG CHANGE IN THE SENSE THAT IT GIVES BANKS THE OPTION TO DO A RESCUE OF JAPAN'S MANY WEAK SECURITIES FIRMS COSMO'S SPECIAL LOSSES CAME FROM THE PRACTICE OF TOBASHI OR FLYING A SCHEME TO AVOID RECORDING EQUITY LOSSES ON A CUSTOMER'S ACCOUNT BY SHIFTING MONEY TO THAT ACCOUNT FROM A DIFFERENT CUSTOMER THE BROKER PROMISES TO REPAY THE LENDING CUSTOMER HIS MONEY PLUS INTEREST THE BROKER'S HOPE IS THAT IN THE MEANTIME THE STOCK MARKET WILL RALLY ENOUGH SO THAT EVERYONE CAN GET HIS MONEY BACK THE REALITY IS THAT JAPANESE STOCK PRICES FELL DURING THE PERIOD AND LOSSES MOUNTED FINANCE MINISTRY OFFICIALS ARE QUICK TO SAY THAT COSMO'S CASE WAS A SPECIAL ONE ALLOWING DAIWA TO TAKE A BIG STAKE IN COSMO THEY ARGUE DIDN'T AMOUNT TO A POLICY CHANGE THIS IS AN EXCEPTIONAL MEASURE TO AVOID CONFUSION IN THE MARKET A MINISTRY SPOKESMAN SAID BUT CONFUSION REIGNS AT MANY JAPANESE SECURITIES FIRMS ANALYSTS SAY THE COMPANIES ARE REELING FROM A THREEYEAR BEAR MARKET DURING WHICH TRADING VOLUMES AT ONE POINT HIT THEIR LOWEST LEVEL IN MORE THAN A DECADE THE TRADING SLUMP HAS BEEN LIFETHREATENING FOR MANY FIRMS WHICH LIKE COSMO DEPEND ON COMMISSIONS FOR MUCH OF THEIR INCOME EVEN WITHOUT THE TOBASHI FIASCO COSMO'S SITUATION WAS DIRE MR ALTHERR SAID SALES COMMISSIONS WERE DOWN TO EIGHT MILLION YEN PER EMPLOYEE HE SAID JUST COVERING THEIR SALARIES EATS A LOT OF THAT UP THE SITUATION IS ALMOST AS BAD AT MANY OTHER FIRMS HE ADDED IT ALSO ISN'T CLEAR WHETHER COSMO'S COSTLY TOBASHI SCANDAL IS UNIQUE MINISTRY OFFICIALS SAID THAT IN THE NEXT FEW WEEKS THEY WILL BEGIN CHECKING THE FINANCES OF 48 OTHER JAPANESE SECURITIES COMPANIES SO ANALYSTS THINK THAT A LOT OF OTHER JAPANESE BROKERAGE CONCERNS MAY NEED A COSMOSTYLE BAILOUT IN THE MOST RECENT FINANCIAL REPORTING PERIOD NINE OUT OF 19 OF THE MAJOR SECURITIES COMPANIES HAD NET LOSSES OF AT LEAST 30 OF THEIR CAPITAL SAID ALICIA OGAWA AN ANALYST AT SALOMON BROTHERS ASIA LTD IF THAT RATE CONTINUES SHE SAYS THE COMPANIES WOULD BE ON A DEATH WATCH IF YOU WILL OF TWO YEARS MS OGAWA SEES PARALLELS BETWEEN THE COSMO BAILOUT AND THE GOVERNMENTORCHESTRATED RESCUE OF THE JAPANESE SECURITIES INDUSTRY IN THE 1960S SHE SAYS IT'S LIKELY THAT DAIWA WILL RECEIVE FAVORABLE GOVERNMENT TREATMENT IN THE FORM OF TAX BREAKS OR INTERESTFREE LOANS IN EXCHANGE FOR HELPING COSMO SIMILAR TO THE HEAVY GOVERNMENT INVOLVEMENT IN THE RESCUE OF THE JAPANESE SECURITIES INDUSTRY DURING ITS EARLIER CRISIS INDEED DAIWA PRESIDENT AKIRA FUJITA REPORTEDLY SAID FRIDAY THAT DAIWA WILL ASK JAPAN'S CENTRAL BANK FOR AN EMERGENCY LOAN TO HELP FINANCE DAIWA'S RESCUE OF COSMO GOVERNMENT OFFICIALS SEEMED INITIALLY COOL TO THE IDEA HOWEVER IF DAIWA DOES HANDLE THE RESCUE ON ITS OWN IT COULD AFFECT THE BANK'S CREDIT RATING LATE FRIDAY MOODY'S INVESTORS SERVICE ANNOUNCED IT WAS REVIEWING THE DEBT RATINGS OF DAIWA IN CONNECTION WITH THE COSMO RESCUE 9308160045 930816 WHO'S NEWS EASTMAN KODAK CO EASTMAN KODAK CO ROCHESTER NY C MICHAEL HAMILTON 48 YEARS OLD WAS ELECTED GENERAL COMPTROLLER OF THIS PHOTOGRAPHY AND CHEMICALS CONCERN MR HAMILTON WHO WILL CONTINUE AS ACTING CHIEF FINANCIAL OFFICER SUCCEEDS JULIAN M GORDON 63 WHO WILL RETIRE SEPT 1 EARNEST W DEAVENPORT JR PRESIDENT OF KODAK'S EASTMAN CHEMICAL CO UNIT RESIGNED AS A KODAK DIRECTOR AS EXPECTED KODAK HAS ANNOUNCED PLANS TO SPIN OFF THE UNIT AS AN INDEPENDENT PUBLIC COMPANY TO BE HEADED BY THE 55YEAROLD MR DEAVENPORT 9308160044 930816 PRUDENTIAL UNIT SET TO PAY 120 MILLION IN BID TO SETTLE ENERGYPARTNERSHIP CASE BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC HAS AGREED TO PAY 120 MILLION TO SETTLE A CLASSACTION CASE BROUGHT BY 130000 ENERGYPARTNERSHIP INVESTORS PEOPLE FAMILIAR WITH THE MATTER SAID THE SETTLEMENT WHICH COULD BE ANNOUNCED AS EARLY AS THIS WEEK WOULD PAVE THE WAY FOR THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT TO CONCLUDE A BROADER SETTLEMENT WITH FEDERAL REGULATORS INVESTIGATING WHETHER THE FIRM IMPROPERLY SOLD 6 BILLION OF LIMITED PARTNERSHIPS IN THE 1980S ON FRIDAY PRUDENTIAL SECURITIES TOLD US DISTRICT JUDGE MARCEL LIVAUDAIS JR WHO IS OVERSEEING THE CLASSACTION CASE IN A NEW ORLEANS FEDERAL COURT THAT THE FIRM AND PLAINTIFFS' LAWYERS ARE VERY CLOSE TO A SETTLEMENT IN A STATEMENT RELEASED LATE FRIDAY PRUDENTIAL SECURITIES SAID ONLY THAT THE TWO SIDES BELIEVE THEY WILL HAVE AN ACCORD IMMINENTLY THIS IS THE SECOND STAB PRUDENTIAL SECURITIES HAS TAKEN AT SETTLING THE CLASSACTION CASE IN FEBRUARY JUDGE LIVAUDAIS SAID HE HAD SERIOUS RESERVATIONS ABOUT THE FAIRNESS OF PRUDENTIAL'S ORIGINAL SETTLEMENT PROPOSAL WHICH INCLUDED ABOUT 37 MILLION IN CASH PAYMENTS AND INTERESTS IN THE PARTNERSHIPS IN A REORGANIZED FORM THE INVESTORS ALLEGED THAT PRUDENTIAL MISREPRESENTED THE RISKS AND RETURNS OF THE ENERGY PARTNERSHIPS MANY OF WHICH HAVE SOURED IF ACCEPTED BY CLASS COUNSEL AND JUDGE LIVAUDAIS THE NEW SETTLEMENT WOULD BRING TO 127 BILLION OR AN AVERAGE OF 87 CENTS ON THE DOLLAR THE AMOUNT THAT INVESTORS WILL GET FOR THEIR ORIGINAL 145 BILLION INVESTMENT IN 35 ENERGY PARTNERSHIPS THE INVESTORS SO FAR HAVE RECEIVED DISTRIBUTIONS OF 655 MILLION AND WILL GET AN ADDITIONAL 491 MILLION FROM THE PENDING SALE OF THE PARTNERSHIPS TO PARKER & PARSLEY PETROLEUM CO A TEXAS OIL AND GAS COMPANY BUT SOME PLAINTIFFS' LAWYERS ARGUE THAT EVEN THE NEW SETTLEMENT ISN'T FAIR THAT'S BECAUSE INVESTORS WILL STILL HAVE RECEIVED FAR LESS THAN THEY WOULD HAVE EARNED HAD THEY PUT THEIR MONEY IN TREASURY BILLS DURING THE SAME TIME PRUDENTIAL'S 120 MILLION SETTLEMENT OFFER IS WOEFULLY INADEQUATE ASSERTED STEPHEN MURRAY A NEW ORLEANS ATTORNEY REPRESENTING ENERGYPARTNERSHIP INVESTORS WITH CLAIMS AGAINST PRUDENTIAL MY ADVICE TO MY CLIENTS IS THAT THEY CAN DO BETTER THROUGH ARBITRATION OR LITIGATION PRUDENTIAL IS SEEKING TO CREDIT THE 120 MILLION ACCORD TOWARD A BROADER SETTLEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION PEOPLE FAMILIAR WITH THE MATTER SAY THE SEC ALONG WITH STATE REGULATORS IS INVESTIGATING THE WAY PRUDENTIAL SECURITIES SOLD THE PARTNERSHIPS INTERNAL SALES DOCUMENTS SHOW THAT PRUDENTIAL URGED ITS BROKERS TO SELL A WIDE RANGE OF HIGHRISK PARTNERSHIPS TO INVESTORS SEEKING SAFETY MANY OF THE PARTNERSHIPS WERE SOLD AS EQUIVALENTS TO SAFE CERTIFICATES OF DEPOSIT THE DOCUMENTS SHOW LIMITED PARTNERSHIPS ARE EXTREMERLY LUCRATIVE FOR SECURITIES FIRMS WHICH EARN LOFTY COMMISSIONS ON THEM FOR THEMSELVES AND THEIR BROKERS PRUDENTIAL COULD PAY AS MUCH AS 400 MILLION IN A RESTITUTION FUND FOR PARTNERSHIP INVESTORS AS PART OF THE SETTLEMENT THE PEOPLE SAY BUT SEVERAL STATES ARE EXPECTED TO BALK AT THAT SETTLEMENT AMOUNT THE PEOPLE ADD AND PRUDENTIAL IS LIKELY TO HAMMER OUT SEPARATE SETTLEMENTS WITH THOSE STATES AFTER THE SEC ACCORD EVEN WITH THE SETTLEMENTS PRUDENTIAL STILL FACES OTHER PARTNERSHIP HEADACHES THE FIRM STILL IS CONTESTING INDIVIDUAL LAWSUITS AND ARBITRATIONS BROUGHT BY INVESTORS IN THE FIRM'S PARTNERSHIPS AND THE US ATTORNEY'S OFFICE IN MANHATTAN HAS BEGUN A CRIMINAL INVESTIGATION OF THE FIRM'S PARTNERSHIP PRACTICES IN A BID TO DETERMINE WHETHER THERE WERE ANY ILLEGAL PAYMENTS MADE TO FORMER PRUDENTIAL EXECUTIVES IN CONNECTION WITH THE PARTNERSHIPS BUT THE CLASSACTION SETTLEMENT IF ACCEPTED GOES A LONG WAY TOWARD PUTTING A LOT OF THEIR PARTNERSHIP PROBLEMS BEHIND THEM SAID J BOYD PAGE OF PAGE & BACEK AN ATLANTA LAW FIRM REPRESENTING CLIENTS WITH CLAIMS AGAINST PRUDENTIAL 9308160043 930816 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 2 15/16 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 309 30 TO 59 DAYS 311 60 TO 89 DAYS 312 90 TO 119 DAYS 316 120 TO 160 DAYS 326 161 TO 179 DAYS 328 180 TO 239 DAYS 335 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 317 60 DAYS 318 90 DAYS CERTIFICATES OF DEPOSIT 260 ONE MONTH 265 TWO MONTHS 268 THREE MONTHS 288 SIX MONTHS 306 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 307 THREE MONTHS 328 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 304 60 DAYS 305 90 DAYS 307 120 DAYS 317 150 DAYS 319 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 1/2 SIX MONTHS 3 11/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 656 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY AUGUST 9 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 305 13 WEEKS 318 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 689 60 DAYS 697 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 687 60 DAYS 697 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 9308160042 930816 BUSINESS BRIEF CONTINUUM CO ACQUISITION OF PAXUS CORP IN STOCK SWAP IS COMPLETED CONTINUUM CO AUSTIN TEXAS SAID IT COMPLETED ITS ACQUISITION OF AUSTRALIA'S PAXUS CORP IN AN EXCHANGE OF STOCK BOTH CONCERNS ARE CONSULTING AND COMPUTER SERVICES COMPANIES AS PREVIOUSLY REPORTED CONTINUUM OFFERED TO EXCHANGE 00559 OF A SHARE OF ITS COMMON STOCK FOR EACH OF PAXUS'S APPROXIMATELY 69 MILLION SHARES OUTSTANDING CONTINUUM SAID MORE THAN 98 OF PAXUS'S COMMON SHARES WERE TENDERED AND THAT AS A RESULT IT WILL ISSUE ABOUT 38 MILLION COMMON SHARES TO PAXUS SHAREHOLDERS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY CONTINUUM'S COMMON STOCK CLOSED UP 25 CENTS A SHARE AT 15875 THAT GIVES THE TRANSACTION AN INDICATED VALUE OF 603 MILLION THE COMPANY SAID ITS SECOND FISCAL QUARTER ENDING SEPT 30 WILL REFLECT VARIOUS RESTRUCTURING COSTS FRIDAY CONTINUUM REPORTED THAT ITS NET INCOME FOR THE FIRST FISCAL QUARTER ENDED JUNE 30 FELL 56 TO 708000 OR SEVEN CENTS A SHARE FROM 16 MILLION OR 15 CENTS A SHARE REVENUE SLIPPED TO 29827000 FROM 29846000 THE RESULTS DIDN'T REFLECT THE PAXUS ACQUISITION 9308160041 930816 BUSINESS BRIEF SINGAPORE TELECOMMUNICATIONS IPO IS SLATED FOR OCTOBER SHARES TO BE SOLD AT DISCOUNT PRIME MINISTER GOH CHOK TONG SAID SINGAPORE WILL LAUNCH SINGAPORE TELECOMMUNICATIONS PTE'S INITIAL PUBLIC OFFERING IN OCTOBER SINGAPOREANS WILL BE ABLE TO BUY UP TO ABOUT 1000 SINGAPORE DOLLARS US621 OF SINGAPORE TELECOM STOCK EACH AT AN EFFECTIVE 45 DISCOUNT THE DISCOUNT WILL CONSIST OF AN INITIAL 5 CASH DISCOUNT FROM THE OFFERING PRICE OF THE SHARES PLUS BONUS SHARES IN SUBSEQUENT YEARS MR GOH IN HIS ANNUAL NATIONAL DAY RALLY SPEECH SAID THE GOVERNMENT EXPECTED THE OFFERING TO MORE THAN DOUBLE THE NUMBER OF SINGAPOREANS WHO OWN STOCK FROM ABOUT 250000 CURRENTLY IF MR GOH IS RIGHT AND 500000 SINGAPOREANS BUY THE MAXIMUM AMOUNT OF SINGAPORE TELECOM STOCK AT LEAST S500 MILLION OF DISCOUNTED STOCK WILL BE ISSUED SINGAPORE TELECOM WILL SELL SUBSTANTIALLY LESS THAN THE MINIMUM OF 25 OF THE COMPANY ANALYSTS EXPECT THE OFFERING TO VALUE ALL OF SINGAPORE TELECOM AT A MINIMUM S20 BILLION OR ABOUT 20 TIMES FISCAL 1993 EARNINGS 9308160040 930816 THE OUTLOOK EUROPE'S MONETARY ILLS COULD PAIN US TOO BY TIM CARRINGTON WASHINGTON THE LATEST CONVULSIONS OF THE EUROPEAN MONETARY SYSTEM HAVE PRODUCED SMIRKS AND SOME CHEERS FROM THIS SIDE OF THE ATLANTIC AMERICANS HAD COME TO VIEW EUROPE'S BELEAGUERED MONETARY LINKAGE AS A GERMANDESIGNED STRAITJACKET HOLDING VITAL TRADING PARTNERS UNDER HIGH INTEREST RATES AND RECESSION SO THE EMS BUSTUP IS WIDELY SEEN AS PAVING THE WAY FOR LOWER RATES AND GROWTH WHICH THE US HAS BEEN UNSUCCESSFULLY URGING ON EUROPE FOR TWO YEARS BUT AMERICANS SHOULDN'T LET THEIR GLEE GET OUT OF HAND THE DEMISE OF EUROPE'S OLD EXCHANGE RATE MECHANISM WON'T NECESSARILY BRING ABOUT WHAT THE US WANTS AND IT COULD LEAD TO DEVELOPMENTS THAT WOULD CLEARLY JEOPARDIZE US ECONOMIC INTERESTS LAST WEEK THE FRENCH TRIMMED OVERNIGHT INTEREST RATES MODESTLY WHILE FINLAND AND SWEDEN ANNOUNCED MORE SIGNIFICANT CUTS BUT ALL SIGNS POINT TO GINGERLY ONESTEPATATIME CUTS THAT AREN'T LIKELY TO SPARK A SURGE IN EUROPE'S ECONOMIES ANYTIME SOON MEANWHILE EUROPEAN UNEMPLOYMENT IS PUSHING TOWARD 12 AND KEY EUROPEAN INDUSTRIES PLAN NEW LAYOFFS IT IS WORTH RECALLING THAT FAR MORE DRAMATIC CUTS IN US INTEREST RATES OVER THE PAST TWO YEARS PRODUCED A WEAK RECOVERY THAT STILL SEEMS LIKE A RECESSION IN MUCH OF THE COUNTRY THE BIGGEST PERIL IS THAT THE MONETARY DISARRAY WILL FURTHER SAP EUROPEANS' INTEREST IN PURSUING ECONOMIC INTEGRATION UNDER A MORE FRACTURED LESS COHESIVE EUROPE THE US WILL FACE FAR GREATER DIFFICULTIES IN SAY GETTING THE FRENCH TO ACCEPT LOWER FARM SUBSIDIES AS PART OF AN AGREEMENT FOR MORE OPEN TRADE IN A VARIETY OF GOODS AND SERVICES IF POLITICAL EUROPE WERE TO BUST UP THE WAY THAT MONETARY EUROPE HAS YOU COULD SEE A SHIFT TO POPULIST PROTECTIONIST POLICIES WARNS RICHARD DAVIDSON A STRATEGIST AT MORGAN STANLEY & CO IN LONDON KEEPING THE TRANSATLANTIC TRADING TIES INTACT IS FAR MORE IMPORTANT TO AMERICAN INTERESTS THAN SHORTTERM DIFFERENCES OVER MONETARY POLICY THE US LAST YEAR SOLD NEARLY 200 BILLION OF GOODS AND SERVICES TO THE EUROPEAN COMMUNITY AND IMPORTED SLIGHTLY LESS THAN THAT A WEAKENED POLITICALLY UNCERTAIN EC WOULD BE POORLY POSITIONED TO SEAL THE MARATHON TRADE TALKS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE WHICH WOULD HELP ASSURE THAT TRANSATLANTIC TRADE CONTINUES WITHOUT AN OUTBREAK OF COSTLY DISRUPTIVE DISPUTES RECENT SPATS ON EVERYTHING FROM OILSEEDS TO STEEL SHOW THAT USEUROPEAN TIES COULD FRAY IF BOTH SIDES AREN'T CAREFUL AMERICAN GLOATING OVER THE EMS WOES COULD ALSO BE CUT SHORT IF MONETARY MAYHEM IN EUROPE SPARKS A RUSH TO THE DOLLAR AND A SURGE IN ITS VALUE RELATIVE TO OTHER WORLD CURRENCIES THAT WOULD MAKE AMERICAN GOODS MORE COSTLY IN FOREIGN MARKETS AND DAMP THE EXPORTS THAT WASHINGTON HOPES THE BREAKING OF THE OLD EMS CLAMP WILL STIMULATE INDEED SOME KIND OF EUROPEAN CURRENCY ARRANGEMENT INCLUDING EVENTUALLY A FULL MONETARY UNION AND SINGLE CURRENCY COULD PROVIDE GLOBAL COMPANIES CONSIDERABLY MORE STABILITY ONCE SHATTERED THE EMS OR A SUCCESSOR PLAN WILL BE HARD TO PUT BACK TOGETHER AND DOWN THE ROAD US COMPANIES COULD BE DENIED THE STABILITY THEY WANT RIGHT NOW I DON'T SEE ANY OBVIOUS WAY FORWARD SAYS RICHARD PORTES OF THE CENTRE FOR ECONOMIC POLICY RESEARCH IN LONDON WHILE THE US WANTS EUROPEAN COOPERATION ON OPENING TRADE AIDING RUSSIA AND ENDING THE CARNAGE IN THE BALKANS IT IS UNWISE TO SIGNAL AN ATTITUDE OF ANTIPATHY TOWARD EUROPEAN COHESION UNDER A SINGLE MARKET YET THAT IS WHAT SOME EUROPEANS NOW PERCEIVE IN FRANCE THERE IS TALK OF AN ANGLOSAXON PLOT TO DESTROY THE EMSMOUNTED IN LONDON AND NEW YORK TRADING ROOMS BUT DIRECTED OR AT LEAST CHEERED ALONG FROM WESTMINSTER AND WASHINGTON THE CONSPIRACY THEORY IS NONSENSE BUT THE RIFT IT REVEALS IS SERIOUS A FRENCH GOVERNMENT OFFICIAL NOTES THAT THE WILD SELLOFF OF FRANCS THAT PRECIPITATED THE MONETARY CRISIS WAS SPARKED BY NONRESIDENTS HOLDING EUROPEAN CURRENCIES HE ADDS EUROPEAN RECOVERY IS GOOD FOR US GROWTH BUT I DON'T SHARE THE VIEW THAT BREAKING EUROPEAN MONETARY STABILITY IS THE KEY TO RECOVERY RATHER THAN TEPID CONDOLENCES OVER THE ILLSTARRED EMS WASHINGTON SHOULD BEAM A STRONG MESSAGE OF ENCOURAGEMENT TO EUROPEANS TRYING TO RECONSTRUCT A SUSTAINABLE MONETARY LINKAGE AND PUSH ALONG THE NEXT PHASES OF INTEGRATION PEOPLE IN THE US HAVE TO BE CAUTIOUS ABOUT READING THE TURMOIL IN THE EC AS A SIGN THAT EUROPE HAS RETREATED FROM THE GOAL OF INTEGRATION SAYS ROBERT ZOELLICK FORMER UNDERSECRETARY OF STATE FOR ECONOMIC AFFAIRS BUT THE TIMING STRUCTURE AND FORM OF INTEGRATION IS MORE IN FLUX THAT IS ALL THE MORE REASON FOR THE US TO DECIDE WHERE ITS LONGTERM INTERESTS LIE AND TO SUPPORT A TRANSATLANTIC PARTNERSHIP THAT CAN FURTHER THEM A RECENT STUDY BY THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE URGES THE US TO VIEW THE CURRENT IMPASSE AS A WATERSHED FROM WHICH IT COULD PUSH TRANSATLANTIC COLLABORATION ON A RANGE OF ISSUES INCLUDING REDUCED OBSTACLES TO INVESTMENT MORE PREDICTABLE TAX TREATMENT AND BETTERCOORDINATED POLICIES ON SUBSIDIES AND ANTITRUST PRACTICES THE BEST VEHICLE FOR PROGRESS ON THESE FRONTS IS A STRONG EC STRUCTURE THAT THE US CAN DEAL WITH OF COURSE MANY AMERICANS INCLUDING SOME OF THE GLOATERS SAY THE BEST WAY TO ENCOURAGE EUROPEAN INTEGRATION AND DISCOURAGE PROTECTIONIST POLICIES IS TO CREATE A REASONABLE LEVEL OF EUROPEAN GROWTH THAT STILL ISN'T IN THE CARDS WITH ECONOMIC DETERIORATION CONTINUING IN GERMANY FRANCE AND ITALY AND INTERESTRATE CUTS TOO MODEST TO SPARK MUCH OF A REBOUND STILL THE AMERICANS MAKE A GOOD POINT 9308160039 930816 MARKETING & MEDIA ADVERTISING SWIMMING POOL GEAR ADS AIMED AT MEN BUT WOMEN ARE BUYERS BY JACK REJTMAN SCANTILY CLAD IN A PINK AND BLUE BIKINI A SLENDER BLONDE IS PICTURED ON THE PACKAGE OF A SWIMMING POOL VACUUM POSING SUGGESTIVELY WITH THE LONG CYLINDRICAL DEVICE IN HAND SHOWN STANDING AND KNEELING AT POOL'S EDGE SHE BECKONS THE MALE HEAD OF THE HOUSE TO GIVE HER PRODUCT A LOOK PROBLEM IS WOMEN NOT MEN ARE THE PRIMARY PURCHASERS OF POOL PRODUCTS A FACT THAT HAS BEEN SLOW TO FILTER DOWN TO ALL LEVELS OF MARKETING IN THE MALEDOMINATED 7 BILLION POOL AND SPA INDUSTRY WOMEN IN BIKINIS CONTINUE TO CROP UP ON PRODUCTS THAT PACK POOL STORE SHELVES AND IN ADS THAT FILL POOL AND SPA TRADE MAGAZINES AND WHILE SOME EFFORTS HAVE BEEN MADE TO CLEAN UP THE INDUSTRY'S IMAGE ONE UPSTART COMPANY FOUNTAINHEAD TECHNOLOGIES INC CLAIMS THAT SEXISM STILL THRIVES BENEATH THE SURFACE ALMOST EVERYBODY IN THE INDUSTRY WILL ADMIT THAT IF YOU WANT A POOL IN SOMEBODY'S BACKYARD THEN THE WOMAN HAS TO SAY YES BUT MOST POOL COMPANY OWNERS ARE MACHO TYPES THAT HAVEN'T GOTTEN USED TO THE IDEA THAT WOMEN ARE THEIR MAIN CUSTOMERS SAYS DAVID SYKES MARKETING DIRECTOR AT FOUNTAINHEAD THE COMPANY WHICH PRODUCES THE VISION WATER PURIFIER DIRECTLY TARGETED FEMALE CONSUMERS WHEN IT INTRODUCED ITS PRODUCT THROUGH ABOUT A DOZEN DISTRIBUTORS IN NOVEMBER AND LESS THAN NINE MONTHS LATER THE PRODUCT HAS MADE QUITE A SPLASH FOUNTAINHEAD'S TRADE AD FOCUSING ON THE COSMETIC AND HEALTH BENEFITS OF ITS CHLORINEFREE PRODUCT SHOWS A WOMAN AND A CHILD WRAPPED IN A LARGE WHITE TOWEL AND THE SIMPLE SLOGAN FOR THE HEALTH OF YOUR FAMILY FOR THE LIFE OF YOUR POOL WITH LESS THAN 1 MILLION SPENT ON A POINTOFPURCHASE AND PRINT AD CAMPAIGN FOUNTAINHEAD HAS GENERATED A WAVE OF INTEREST AMONG WOMEN CONSUMERS ABOUT 400 DISTRIBUTORS NATIONWIDE HAVE SIGNED ON AND FOUNTAINHEAD HAS PROJECTED SALES OF 45 MILLION THIS YEAR EVERYTHING WE DO IS GEARED TOWARD THE WOMAN AND THE FAMILY NOT THE MAN SAYS DAVID TISHERMAN A FOUNTAINHEAD DISTRIBUTOR IN MANHATTAN BEACH CALIF IT'S A SOFT LOOK NOT SOME MACHO GUY WITH MUSCLES RIPPLING OR A BIKINICLAD WOMAN FOR DECADES POOL AND SPA COMPANIES USED SEXY ADS TO TARGET WHAT THEY PERCEIVED AS A PREDOMINANTLY MALE AUDIENCE WOMEN MODELING SWIMSUITS LONG OUTNUMBERED WOMEN IN BUSINESS SUITS AT TRADE SHOWS EVEN WITH GROWING FEMALE CONSUMER CLOUT AT HOME AND IN THE WORKPLACE A MACHO MENTALITY HAS PERSISTED IN THE AREAS WHERE COMPANIES SPEND MOST OF THEIR AD DOLLARS TRADE MAGAZINES AND RETAIL DISPLAYS IN THE JANUARY 1993 SPECIAL ISSUE OF POOL & SPA NEWS WOMEN APPEAR IN FULLCOLOR FULLPAGE ADS MORE THAN TWICE AS OFTEN AS MEN AND MORE THAN A THIRD OF THOSE WOMEN APPEAR IN ADS WITH SEX APPEAL ONE SLINKY AD BY MAGIC PLASTICS INC FEATURES A WOMAN IN A BLACK BIKINI AND BOW TIE PULLING PLASTIC VALVES OUT OF A BLACK TOP HAT ROBARB INCORPORATED A WHOLLY OWNED SUBSIDIARY OF LAPORTE PLC RUNS AN AD THAT SHOWS ITS CHEMICAL STARTUP KITS WITH AN ICE COLD DRINK A BUBBLING SPA AND A WELLENDOWED BIKINICLAD WOMAN IN RETAIL STORES BATHING BEAUTIES SURFACE ON PRODUCT PACKAGES THE BOX FOR POOLMASTER INC'S INFLATABLE DELUXE POCKET LOUNGER FOR EXAMPLE SHOWS A WOMAN IN A SWIMSUIT FLOATING IN EVERY PANEL BUT NO MEN POOL DOCTOR INC'S TEST MASTER MEANWHILE DISPLAYS BOTH A MAN AND A WOMAN ALTHOUGH IT SHOWS QUITE A BIT MORE WOMAN ON ONE PANEL A FULLY DRESSED MIDDLEAGED MAN HOLDS A TEST MASTER OVER A POOL ON ANOTHER PANEL A BUXOM YOUNG BLONDE IN A PINK BIKINI LEANS OVER A SPA TO CONVENIENTLY POSITION THE SANITATION DEVICE IN FRONT OF HER RIGHT BREAST EYECATCHING NO DOUBT BUT POLITICALLY CORRECT THIS IS NOT A SEXIST AD AT ALL SAYS SAM NAZARYAN PRESIDENT OF WORLD INDUSTRIES INTERNATIONAL INC THE PARENT OF POOL DOCTOR PRODUCT AND EASE OF USE NOT CLEAVAGE ARE THE INTENDED FOCUS OF TEST MASTER'S PACKAGE HE SAYS ADDING THAT IT NEVER OCCURRED TO HIM THAT SOME CONSUMERS MIGHT PAY MORE ATTENTION TO THE MODEL'S ATTIRE OR LACK THEREOF THAN TO HIS PRODUCT BUT ANTHONY MADORMO NATIONAL SALES MANAGER AT MAGIC PLASTICS MAKES NO BONES ABOUT HIS COMPANY'S SOMEWHAT SEXY ADS TO BE PERFECTLY HONEST WITH YOU WHY WOULD I WANT TO SHOW A GUY IN AN AD IF I'M A GUY ASKED MR MADORMO I DEAL WITH VERY FEW WOMEN PROBABLY FIVE PERCENT AND IF YOU GO TO ANY OF THESE TRADE SHOWS YOU SEE GUYS DOING BUSINESS NOT GIRLS IT'S KIND OF A SEXIST REMARK I GUESS BUT IT'S TRUE MR MADORMO SAYS HE HAS RECEIVED NO COMPLAINTS FROM WOMEN AND ONLY ENCOURAGEMENT FROM MEN AND AS LONG AS MEN CONTINUE TO DOMINATE THE DISTRIBUTION AND MANUFACTURING SIDE OF THE POOL INDUSTRY HE PLANS TO KEEP WOMEN IN HIS ADS INDEED HE SAYS AS SOME COMPANIES TURN AWAY FROM USING WOMEN THE REMAINING CHEESECAKE ADS WILL GARNER EVEN MORE ATTENTION PAUL ROSENBERG MARKETING DIRECTOR AT ROBARB ADMITS HIS COMPANY HAS DILUTED ITS USE OF BIKINICLAD WOMEN OPTING TO USE CARTOON CARICATURES IN RECENT ADS WHILE DEFENDING THE USE OF WOMEN IN BIKINIS IN SOME INSTANCES MR ROSENBERG SAYS THAT ANY GOOD MARKETING FIRM RESPONDS TO WHAT THE CUSTOMER WANTS AND IF WE DON'T FEEL OUR MESSAGE IS GETTING ACROSS WE'LL CHANGE IT NEITHER POOLMASTER NOR POOL DOCTOR RETURNED CALLS BUT EVEN WOMEN AGREE THAT THE USE OF WOMEN IN BIKINIS DOES NOT IN ITSELF MEAN THAT AN AD IS SEXIST WHAT MATTERS IS HOW WOMEN ARE DEPICTED ARLENE STACHEL ONE OF FOUR WOMEN ON THE NATIONAL SPA & POOL INSTITUTE'S 20MEMBER GOVERNING BOARD RECALLS THE TOPLESS ADS OF FOUR OR FIVE YEARS PAST IT USED TO BE THAT GUYS COULDN'T WAIT UNTIL NEXT YEAR'S CATALOG COMES OUT SAYS MRS STACHEL WHO OWNS TWO RETAIL STORES AND A POOL AND SPA SERVICE WITH HER HUSBAND IN DOYLESTOWN PA BUT IT INSULTS MY INTELLIGENCE IF COMPANIES FEEL THE NEED TO USE NUDITY TO GET MY ATTENTION OR SELL THE PRODUCT IF I SEE IT I'M ALREADY TURNED OFF NATIONWIDE NSPI HAS DEVELOPED TELEVISION AND PRINT IMAGE ADS FOCUSING ON FAMILY FITNESS AND FUN THAT ITS MEMBERS CAN PURCHASE FOR 25 AND 5 RESPECTIVELY SINCE THE CAMPAIGN BEGAN IN 1991 MEMBERS NATIONWIDE HAVE BOUGHT MORE THAN 250 ADS MEANWHILE INDIVIDUAL COMPANIES SUCH AS RAINBOW LIFEGARD PRODUCTS INC ONCE NOTORIOUS FOR ITS RAINBOW GIRL POSTERS AND CATALOGS HAVE PURGED THEIR PRODUCTS OF WINSOME WOMEN SEX STILL SELLS SAYS RAINBOW MARKETING DIRECTOR DICK JOSEPH BUT THERE'S BEEN A TREND AWAY FROM THAT IN THE AGE OF THE WOMAN TRADE MAGAZINES CONFIRM THIS TREND REPORTING THAT THERE ARE ABOUT HALF AS MANY SEXY ADS NOW AS THERE WERE FIVE YEARS AGO STILL FOUNTAINHEAD'S EFFORTS SEEM TO STAND OUT FOR RETAILERS FAMILIAR WITH THE CAMPAIGN WITH THIS VISION PRODUCT THE FIRST THING THAT APPEALED TO ME WAS THE WOMAN AND THE CHILD AND THE FAMILY LOOK SAYS BARBARA PANKRATZ OWNER OF NOHL RANCH POOL SUPPLY I GUESS THE LIGHT'S COMING ON SOMEWHERE THAT WE'RE NOT DEALING WITH A BAR SCENE IT'S A BACKYARD AS EXPECTED ANDY BERLIN PRESIDENT OF THE NEW YORK OFFICE OF OMNICOM GROUP'S DDB NEEDHAM IS LEAVING THE POST AFTER 15 MONTHS TO RUN A NEW CUSTOMIZED UNIT DEVOTED TO DDB'S ESTIMATED 50 MILLION VOLKSWAGEN OF AMERICA ACCOUNT AT THE NEW UNIT BERLIN WRIGHT & CAMERON MR BERLIN SAID HE WILL HAVE THE TITLE OF CHAIRMAN TONY WRIGHT WHOM MR BERLIN HAD HIRED TO BE AN EXECUTIVE VICE PRESIDENT AT DDB WAS NAMED PRESIDENT EWEN CAMERON A SENIOR VICE PRESIDENT AND MANAGEMENT SUPERVISOR AT DDB WAS NAMED PRINCIPAL AND DIRECTOR OF PLANNING IN HIS NEW ROLE MR BERLIN WILL REMAIN ACTIVE ON CERTAIN OTHER ACCOUNTS AT DDB INCLUDING JOHNSON & JOHNSON JAMES RIVER AND THE NEW YORK STATE LOTTERY MR BERLIN'S NEW SHOP IS EXPECTED EVENTUALLY TO TAKE ON CERTAIN OTHER DDB ACCOUNTS LIKELY CANDIDATES INCLUDE THE WASHINGTON POST CO AND HJ HEINZ'S OREIDA BRAND AGENCY EXECUTIVES SAID THE CHICAGO OFFICE OF OMNICOM GROUP'S BBDO WON A NEW NATIONAL AD ACCOUNT FOR PARAMOUNT PARKS THE FIVE THEME PARKS OWNED BY PARAMOUNT COMMUNICATIONS NEW YORK INDUSTRY EXECUTIVES ESTIMATED BILLINGS AT ABOUT 10 MILLION BBDO AND TWO OTHER AGENCIES THAT HAD CREATED THE PARKS' REGIONAL ADS COMPETED FOR THE ACCOUNT THEY WERE THE LOS ANGELES OFFICE OF WPP GROUP'S OGILVY & MATHER AND INTERPUBLIC GROUP'S FAHLGREN MARTIN UNIT NEW ADS ARE EXPECTED NEXT YEAR CALDOR CALDOR CORP THE REGIONAL DISCOUNT RETAILER BASED IN NORWALK CONN HIRED STAMFORD AGENCY SCAROS & CASSELMAN TO HANDLE ITS ADVERTISING PREVIOUSLY CREATED INHOUSE BILLINGS WEREN'T DISCLOSED CALDOR SPENT 20 MILLION ON ADS IN 1992 ACCORDING TO LEADING NATIONAL ADVERTISERS ACCOUNTS DOW JONES & CO CHOSE RYAN & PARTNERS NEW YORK TO CREATE NATIONAL ADS FOR DOW JONES INVESTOR NETWORK AN ELECTRONIC VIDEONEWS SERVICE EMBRAER AIRCRAFT CORP A UNIT OF EMBRAER SA OF BRAZIL SELECTED ROSENFELD SIROWITZ HUMPHREY & STRAUSS NEW YORK FOR ITS PRINT AD ACCOUNT BILLINGS COULDN'T BE DETERMINED 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 9308160038 930816 LETTERS TO THE EDITOR WHITHER YESTERYEAR'S HORNED TOADS CONCERNING YOUR JULY 8 PAGE ONE ARTICLE ABOUT THE HORNED LIZARD RECENTLY I TOOK MY NEW STEPCHILDREN BACK TO MY ROOTS IN ABILENE TEXAS ON THE WAY I TOLD THEM ABOUT WHAT WE CALLED HORNY TOADS THE LIZARDS THAT LOOKED LIKE MINIATURE DINOSAURS WHEN WE ARRIVED I TOLD THEM THAT IT WOULD TAKE ME ONLY SECONDS TO FIND ONE AFTER OVER AN HOUR OF FRUITLESS SEARCHING I GAVE UP AND ASKED NEIGHBORS WHY THERE WERE NONE THEY TOLD ME WHAT THEY HAVE KNOWN LOCALLY FOR SEVERAL YEARS THAT WHEN THE IMPORTED FIRE ANT ARRIVED IN ABILENE IT ALL BUT WIPED OUT THE HORNED LIZARD POPULATION THE FIRE ANT WAS INTRODUCED TO THE US DECADES AGO WHEN A SHIP IN MOBILE ALA DUMPED USED SOIL BALLAST CONTAINING THE ANTS THEY'VE BEEN PROGRESSING STEADILY NORTHWARD SINCE THIS ANT HAS NO NATURAL ENEMIES AND THE ENVIRONMENTAL PROTECTION AGENCY HAS BANNED THE USE OF VIRTUALLY ALL MEANINGFUL PESTICIDES THAT CONTROL THEM THE FIRE ANT IS HIGHLY AGGRESSIVE WITH A VICIOUS BITE IT FEEDS ON HIGH PROTEIN INCLUDING NEWBORN CALVES AND HORNED LIZARDS NOW THAT IT IS THREATENING THE SURVIVAL OF THE HORNED LIZARD POPULATION MAYBE THE EPA WILL TAKE ACTION AND RESIDENTS OF SOUTHERN STATES WHO HAVE HAD THEIR LAWNS AND PARKS DEVASTATED BY THE ANTS CAN GET THEM BACK READING YOUR ARTICLE BROUGHT BACK HAPPY MEMORIES OF ENDLESS HOURS SPENT PLAYING WITH HORNY FROGS WHILE GROWING UP IN WEST TEXAS TEXANS CAPITALIZE THE WEST I HAVE NEVER SEEN A HORNED LIZARD SQUIRT BLOOD AND NEVER KNEW WHETHER THIS WAS AN OLD FOLK TALE UNTIL I SAW A MARVELOUS PHOTOGRAPH OF ONE SQUIRTING BLOOD FROM THE RIGHT EYE NATURAL HISTORY P 48 OCTOBER 1992 DR WADE C SHERBROOKE AND GEORGE MIDDENDORF CONDUCTED RESEARCH ON THE REGAL HORNED LIZARD AT THE SOUTHWESTERN RESEARCH STATION PORTAL ARIZ THEY FOUND THE ONLY WAY THEY COULD PROVOKE THE BLOOD SQUIRTING WAS BY HAVING DUSTY A LABRADOR RETRIEVER THREATEN THE LIZARD SO JOHNSON'S STATEMENT THAT TO DATE RESEARCHERS HAVEN'T BEEN ABLE TO RECREATE THIS DEFENSIVE BEHAVIOR IN THE LAB IS NOT QUITE TRUE I GREW UP IN ODESSA TEXAS IN THE '40S AND '50S AND LIKE ALL THE KIDS PLAYED REGULARLY WITH THE THENUBIQUITOUS HORNED TOAD HORNY TOADS MOVE SLOWLY AND ARE EASY TO CATCH AND THEY RESPOND TO BEING STROKED AS IF THEY ENJOY IT WE WERE ALL WARNED NOT TO MISTREAT THEM OR THEY WOULD SPIT BLOOD IN OUR EYES EVERYONE KNEW THAT THIS WAS TRUE AND EVERYONE KNEW THAT HORNY TOADS ATE RED ANTS BUT I NEVER ACTUALLY SAW ONE DO EITHER THE CONVENTIONAL WISDOM IS THAT THE INVASION OF FIRE ANTS HAS DISPLACED THE RED ANT AND CAUSED THE DECLINE OF THE HORNED TOAD IF TRUE THIS ONE CANNOT BE BLAMED ON MANMADE POLLUTION OR DESTRUCTION OF HABITAT YOUR ARTICLE DIDN'T MENTION TARANTULAS BUT I HAVEN'T SEEN ONE OF THEM IN YEARS EITHER MAYBE THE FIRE ANTS GOT THEM TOO YOUR REPORTER OBVIOUSLY NEVER KEPT A HORNED TOAD AS A PET HE NEVER HELD ONE IN HIS HAND AND RUBBED ITS TUMMY TILL IT FELL ASLEEP HE NEVER TIED A STRING AROUND ITS NECK AND TOOK IT FOR A WALK HE SURELY NEVER BRAVED THE PERILS OF A RED ANT BED TO CAPTURE FOOD FOR THAT WONDERFUL CREATURE HE NEVER LET ONE GO AT THE END OF THE DAY WONDERING HOW MANY HOURS HE'D HAVE TO LOOK TO FIND IT AGAIN WHEN THE URGE TO WALK A HORNY TOAD REAPPEARED THOSE OF US WHO HAVE DO MISS THEM FOR YEARS WE'VE WONDERED WHERE THEY WENT I HOPE THOSE WHO TAKE THE TIME TO CARE FIND A WAY TO BRING THEM BACK 9308160037 930816 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR THERE MAY BE A SILVER LINING TO THE DARK CLOUD HANGING OVER THE MANUFACTURING SECTOR THERE IS NO QUESTION MANUFACTURING IS WEAK COMPARED WITH PAST ECONOMIC EXPANSIONS BUT RELATIVE TO THE REST OF THE INDUSTRIALIZED WORLD THE SECTOR IS DOING VERY WELL WE'RE STILL VERY COMPETITIVE IN TERMS OF OUTPUT SAID CYNTHIA LATTA SENIOR ECONOMIST AT DRI/MCGRAW HILL GIVEN THE RECESSIONS ABROAD THE US IS HOLDING ITS OWN AND ALTHOUGH MANUFACTURING JOBS HAVE BEEN LOST DURING THE PAST SEVERAL YEARS US COMPANIES HAVE BENEFITED FROM SHARPLY INCREASED PRODUCTIVITY MS LATTA NOTED PRODUCTIVITY IS RISING AT A 4 TO 5 RATE SHE SAID MANUFACTURING IN SOME WAYS IS DOING VERY WELL A FEDERAL RESERVE BOARD REPORT TO BE RELEASED THIS WEEK PROBABLY WILL SHOW THAT THE NATION'S INDUSTRIAL PRODUCTION IMPROVED SOMEWHAT IN JULY AFTER A DREADFUL JUNE PERFORMANCE SHE SAID THE JULY LEVEL PROBABLY WAS UP 04 FROM JUNE WHICH WAS DOWN 02 FROM THE PREVIOUS MONTH SHE SAID MS LATTA ALSO EXPECTS JULY FIGURES TO SHOW A SMALL INCREASE IN CAPACITY UTILIZATION TO 814 INDUSTRIAL PRODUCTION IS LIKELY TO CONTINUE EKING OUT SMALL GAINS OVER THE NEAR TERM AND IT COULD BENEFIT FROM AN INCREASE IN EXPORT GROWTH IF EUROPE'S ECONOMIC HEALTH IMPROVES LATE THIS YEAR OR EARLY NEXT SHE SAID 9308160036 930816 ECONOMY CONSUMER PRICES BARELY INCREASED DURING JULY RISE OF 01 IS REASSURING TO ECONOMISTS ABOUT FED'S STANCE ON RATES BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONSUMER PRICE INCREASES HAVE SLOWED SHARPLY HELPING REASSURE ECONOMISTS THAT A BOOST IN SHORTTERM INTEREST RATES ISN'T IMMINENT AFTER A WORRISOME RISE IN PRICES IN THE FIRST FOUR MONTHS OF THE YEAR RECENT EVIDENCE SUGGESTS INFLATION IS AGAIN IN CHECK THE LABOR DEPARTMENT SAID ITS CONSUMER PRICE INDEX ROSE A TINY 01 IN JULY THE INDEX DIDN'T CHANGE IN JUNE AND INCREASED ONLY 01 IN MAY ANALYSTS HAVE BEEN WATCHING CLOSELY FOR SIGNS OF PROBLEM INFLATION FOR A HINT AS TO WHETHER THE FEDERAL RESERVE WILL RAISE SHORTTERM INTEREST RATES MOST HAVE BEEN ENCOURAGED THAT THE RECENT SPATE OF GOOD PRICING NEWS COUPLED WITH SIGNS THAT THE ECONOMY IS GROWING SLOWLY WILL KEEP THE FED'S HANDS OFF THE INTERESTRATE LEVER THE CONSUMER PRICE REPORT COMES ON TOP OF OTHER ENCOURAGING INFLATION NEWS PRODUCER PRICES IN JULY FELL LABOR COSTS ROSE AT A SLOW PACE AND A REPORT ON MANUFACTURERS SUGGESTED THAT INFLATION PRESSURES WERE DIMINISHING IN THE INDUSTRIAL SECTOR AS WELL THIS ENHANCES THE FEELING THAT A SURGE IN PRICES AT THE BEGINNING OF THE YEAR WAS SEASONAL AND COULDN'T BE SUSTAINED BECAUSE OF SLUGGISH ECONOMIC ACTIVITY SAID SAMUEL KAHAN CHIEF ECONOMIST OF FUJI SECURITIES IN CHICAGO BUT EVEN IF CONSUMERS SEEM TO BE GETTING A BETTER BANG FOR THEIR BUCK THEY ARE STILL DEPRESSED A RECENT SURVEY BY THE UNIVERSITY OF MICHIGAN FOUND THAT CONSUMER CONFIDENCE FELL ONCE AGAIN IN EARLY AUGUST THE UNIVERSITY'S CONSUMER CONFIDENCE INDEX WHICH IS AVAILABLE ONLY TO PRIVATE SUBSCRIBERS SLIPPED TO 754 FROM 770 IN JULY ALSO IN A NOD TO THE PRICE INCREASES AT THE START OF THE YEAR CONSUMERS SURVEYED EXPECTED INFLATION TO RUN AT A 33 ANNUAL RATE OVER THE NEXT YEAR UP FROM A 30 RATE EXPECTED IN THE PREVIOUS SURVEY LAST YEAR CONSUMER PRICES ROSE 29 CONSUMER PRICES ARE NOT SO BENIGN MAINLY BECAUSE OF THE SERVICE SECTOR SAID CHARLES LEIBERMAN MANAGING DIRECTOR OF FINANCIAL MARKETS RESEARCH AT CHEMICAL SECURITIES INC THAT'S BECAUSE LABOR COSTS TEND TO RISE MORE QUICKLY THAN GOODS FOOD AND ENERGY PRICES WERE BOTH UNCHANGED IN JULY AFTER FALLING IN JUNE OUTSIDE FOOD AND ENERGY PRICES STILL ROSE ONLY 01 PRICES OF HOUSING AND APPAREL WERE ALSO FLAT LAST MONTH THERE WAS A LARGE INCREASE IN AIRLINE TICKETS ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE IS A SUMMARY OF THE COMMERCE DEPARTMENT'S REPORT ON BUSINESS INVENTORIES AND SALES IN MAY THE FIGURES ARE IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED HERE ARE THE SEASONALLY ADJUSTED CHANGES IN THE COMPONENTS OF THE LABOR DEPARTMENT'S CONSUMER PRICE INDEX FOR JULY JULY CONSUMER PRICE INDEXES 19821984 EQUALS 100 UNADJUSTED FOR SEASONAL VARIATION TOGETHER WITH THE PERCENTAGE INCREASES FROM JULY 1992 WERE 9308160035 930816 ECONOMY UAW TO IDENTIFY ON AUG 30 TARGET FOR NEW CONTRACT DETROIT THE UNITED AUTO WORKERS UNION SAID IT WILL NAME A CONTRACT TARGET AMONG THE BIG THREE AUTO MAKERS ON AUG 30 THE UNION BEGAN ITS NEGOTIATIONS WITH THE AUTO MAKERS IN LATE JUNE BUT TRADITIONALLY THE TALKS DON'T GET INTO HIGH GEAR UNTIL THE UNION NAMES ITS TARGET IN LATE AUGUST OR EARLY SEPTEMBER AT THAT POINT THE UAW FOCUSES NEARLY ALL ITS BARGAINING EFFORTS ON THE TARGET UNTIL A CONTRACT IS SIGNED THE UAW THEN TRIES TO FORCE THE OTHER TWO AUTO MAKERS TO SIGN A SIMILAR CONTRACT AS PART OF PATTERN BARGAINING GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP ALL SAY THEY WANT TO BE THE TARGET BECAUSE IT WOULD ALLOW THEM TO SHAPE THE CONTRACT TO BEST FIT THEIR INDIVIDUAL NEEDS BETWEEN NOW AND AUG 30 EACH OF THE BIG THREE IS EXPECTED TO PUT ITS FIRST SERIOUS CONTRACT OFFER ON THE TABLE THE UNION CAN THEN PICK WHICH COMPANY WILL GIVE IT THE BEST CONTRACT THE UAW'S CURRENT THREEYEAR CONTRACT WITH THE BIG THREE EXPIRES SEPT 14 9308160034 930816 WHO'S NEWS SCOTT PAPER CO SCOTT PAPER CO PHILADELPHIA BRUCE K MACLAURY 62YEAROLD PRESIDENT OF THE BROOKINGS INSTITUTION WAS ELECTED A DIRECTOR INCREASING TO 13 THE BOARD MEMBERSHIP AT THIS MAKER OF TISSUE PAPER TOWELS AND PRINTING AND OTHER PAPER PRODUCTS 9308160032 930816 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT ASSOCIATED MATERIALS INC 75 MILLION OF SENIOR SUBORDINATED NOTES DUE AUG 15 2003 PRICED AT PAR TO YIELD 115 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO BRIDGE OIL USA INC 100 MILLION OF SENIOR NOTES DUE AUG 15 2000 PRICED AT PAR TO YIELD 95 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB2 BY MOODY'S AND DOUBLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES INC BRIDGE OIL USA IS A UNIT OF BRIDGE OIL LTD IDB COMMUNICATIONS GROUP INC 170 MILLION OF 5 CONVERTIBLE SUBORDINATED NOTES DUE AUG 15 2003 OFFERED THROUGH UNDERWRITERS LED BY HAMBRECHT & QUIST THE NOTES WILL BE CONVERTIBLE INTO IDB COMMON STOCK AT A PERSHARE PRICE OF 571875 IN A NEWS RELEASE THE COMPANY SAID THE OFFERING HAS AN OVERALLOTMENT OPTION OF 15 OR 255 MILLION ABOUT 80 MILLION OF THE NET PROCEEDS FROM THE OFFERING WILL BE USED TO REPAY ALL OF IDB'S PRESENT SENIOR DEBT OUTSTANDING WITH THE REMAINDER USED FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES RITE AID CORP 200 MILLION OF DEBENTURES DUE AUG 15 2013 PRICED AS 6865S AT 99567 TO YIELD 6915 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 58 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 & CO SCOTT PAPER CO 200 MILLION OF DEBENTURES DUE AUG 15 2023 PRICED AS 7S AT 97231 TO YIELD 7227 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 89 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES 1587 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 178 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 1586 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 66 AND WEIGHTED AVERAGE MATURITY OF 179 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES 1993178 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 765 AND WEIGHTED AVERAGE MATURITY OF 357 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1993179 IS BACKED BY FANNIE MAE 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE MATURITY OF 357 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 400 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MORGAN STANLEY & CO THE OFFERING SERIES 1993180 IS BACKED BY THE AGENCY'S 6 BALLOON MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 665 AND WEIGHTED AVERAGE MATURITY OF 82 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 212 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1993177 IS BACKED BY THE AGENCY'S PRINCIPALONLY STRIPS TRUST 243 WHICH IS BACKED IN TURN BY 30YEAR 85 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 9125 AND WEIGHTED AVERAGE MATURITY OF 340 MONTHS EUROFIMA SUPRANATIONAL 400 MILLION FRENCH FRANCS OF 64 EUROBONDS DUE OCT 7 1994 AT ISSUE AND REOFFER PRICE 1007 VIA CREDIT COMMERCIAL DE FRANCE BONDS YIELD 566 FEES 01 POINT GENERAL ELECTRIC CAPITAL CORP US PARENT 200 MILLION ECU OF 6375 EUROBONDS DUE AUG 31 2000 AT ISSUE PRICE 101025 VIA GOLDMAN SACHS INTERNATIONAL LTD REOFFERED AT 9945 TO YIELD 648 FEES 1875 POINTS GENERAL ELECTRIC CAPITAL CORP US PARENT 150 MILLION OF 6375 EUROBONDS DUE AUG 23 2008 AT ISSUE AND REOFFER PRICE 997 VIA KIDDER PEABODY SECURITIES CO BONDS YIELD 641 A MARGIN OF 56 BASIS POINTS ABOVE 10YEAR US TREASURY FEES 04 POINT ITOCHU CORP JAPAN FIVE BILLION YEN OF 355 EUROBONDS DUE DEC 1 1997 AT ISSUE AND REOFFER PRICE 10025 VIA DKB INTERNATIONAL PLC PUT OPTION EXERCISEABLE ON DEC 1 1995 AT PAR FEES 025 POINT ITOCHU CORP JAPAN FIVE BILLION YEN OF 435 EUROBONDS DUE DEC 1 1997 AT ISSUE AND REOFFER PRICE 10025 VIA DKB INTERNATIONAL PLC FEES 025 POINT 9308160030 930816 INTERNATIONAL FRENCH CENTRAL BANKER LIKELY TO WIN EBRD POST LONDON FRENCH CENTRAL BANKER JACQUES DE LAROSIERE APPEARS CERTAIN TO BECOME THE NEXT PRESIDENT OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT FOLLOWING THE WITHDRAWAL FRIDAY OF ITALY'S CANDIDATE FORMER PRIME MINISTER GIULIANO AMATO THAT LEAVES ONLY MR DE LAROSIERE AND FORMER POLISH FINANCE MINISTER LESZEK BALCEROWICZ AS CANDIDATES TO BE VOTED ON BY THE BANK'S BOARD OF GOVERNORS MR BALCEROWICZ ISN'T THOUGHT TO HAVE MUCH OF A CHANCE AGAINST MR DE LAROSIERE THE GOVERNORS ARE FOR THE MOST PART FINANCE MINISTERS OF COUNTRIES THAT OWN THE EBRD FORMED TO AID EASTERN EUROPE AND THE FORMER SOVIET UNION MR DE LAROSIERE GOVERNOR OF THE BANK OF FRANCE HAD BEEN THE FRONTRUNNER SINCE THE FORMER PRESIDENT JACQUES ATTALI RESIGNED LAST MONTH AMID CRITICISM OVER SPENDING PRACTICES A SPECIAL AUDIT FOUND THAT THE TWOYEAROLD BANK'S CONTROLS OVER EXPENDITURES WERE LAX PARTICULARLY FOR MR ATTALI'S PRIVATE JET AND ENTERTAINMENT EXPENSES 9308160029 930816 FINANCING BUSINESS MATRITECH INC MATRITECH INC SAID IT HAS UNDER WAY THE SALE OF 25 MILLION COMMON SHARES AT 150 EACH IN ITS SECOND PUBLIC OFFERING UNDERWRITERS ARE LED BY THOMAS JAMES ASSOCIATES INC PROCEEDS WILL BE USED TO FINANCE CONTINUING DEVELOPMENT OF THE CAMBRIDGE MASS COMPANY'S CANCER DIAGNOSTIC PRODUCTS 9308160027 930816 INTERNATIONAL WASHINGTON INSIGHT NONPROLIFERATION EFFORTS FACE OBSTACLES FROM NORTH KOREA CHINA CAPITOL HILL BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S NONPROLIFERATION POLICIES FACE CHALLENGES ON THREE SEPARATE FRONTS NORTH KOREA CHINA AND THE US SENATE ALTHOUGH THE CLINTON ADMINISTRATION HAS MADE MAJOR COMMITMENTS TO HALT THE SPREAD OF WEAPONS OF MASS DESTRUCTION IT IS DISCOVERING JUST HOW TOUGH THE ISSUE IS THE TALE OF BUREAUCRATIC WOES BEGINS WITH NORTH KOREA WHOSE APPARENT NUCLEAR WEAPONS DEVELOPMENT PROGRAM HAS PREOCCUPIED WASHINGTON FOR SIX MONTHS LAST MONTH STATE DEPARTMENT NEGOTIATORS APPEARED TO HAVE WRUNG AN AGREEMENT FROM NORTH KOREA TO ALLOW THE RESUMPTION OF NORMAL INTERNATIONAL INSPECTIONS OF PYONGYANG'S NUCLEAR FACILITIES AT A MUCHPUBLICIZED MEETING IN GENEVA NORTH KOREAN OFFICIALS ALSO AGREED TO REOPEN TALKS WITH SOUTH KOREA OVER THE NUCLEAR ISSUE BUT LAST WEEK NORTH KOREA APPEARED TO HAVE DEFAULTED ON BOTH PROMISES DAVID KYD A SPOKESMAN FOR THE INTERNATIONAL ATOMIC ENERGY AGENCY IN VIENNA SAID ITS INSPECTORS WERE ALLOWED TO VISIT YONGBYON NORTH KOREA'S NUCLEAR RESEARCH CENTER BUT WEREN'T ALLOWED TO CARRY OUT A NORMAL INSPECTION MR KYD SAID THE NORTH KOREANS LIMITED IAEA INSPECTORS TO SIMPLE MAINTENANCE CHORES DURING THEIR WEEKLONG VISIT SUCH AS FIXING SEALS AND CHANGING FILMS AND BATTERIES ON CAMERAS THAT ARE USED TO MONITOR KEY SITES WHEN INSPECTORS AREN'T THERE THE DEGREE OF ACCESS IS INSUFFICIENT FOR THIS AGENCY TO DISCHARGE ITS RESPONSIBILITIES SAID MR KYD HE SAID THE INSPECTORS WEREN'T ALLOWED TAKE SAMPLES OR MAKE PHYSICAL CHECKS IN AREAS NORMALLY INSPECTED PYONGYANG ALSO REJECTED A SOUTH KOREAN INVITATION TO START THE AGREEDUPON TALKS AN ADMINISTRATION OFFICIAL SAID THE US REMAINS HOPEFUL THAT NORTH KOREA WILL FULFILL ITS PROMISES BY SEPT 19 THE DEADLINE SET AT THE GENEVA TALKS MEANWHILE A WRANGLE WITH CHINA OVER A SHIP BELIEVED TO BE CARRYING CHEMICAL COMPONENTS FOR POISON GAS HAS ENTERED ITS THIRD WEEK WITHOUT RESOLUTION THE US ASKED CHINA FOR PERMISSION TO INSPECT THE SHIP THE YIN HE WHOSE DESTINATION WAS THE PERSIAN GULF PORT OF DUBAI FROM THERE THE CARGO WAS SCHEDULED TO BE MOVED OVERLAND TO IRAN CHINA WHICH HAD PROMISED THE US IT WOULD HALT EXPORTS OF SUCH ITEMS DENIED THAT THE SHIP IS CARRYING THE CHEMICALS ALLEGED BY WASHINGTON BEIJING SAID IT WOULD HOLD THE US RESPONSIBLE FOR HUGE FINANCIAL LOSSES FOR INTERFERING WITH THE VOYAGE OF THE SHIP THE VESSEL IS REPORTEDLY STRANDED OUT OF FUEL IN INTERNATIONAL WATERS IN THE STRAIT OF HORMUZ A STATE DEPARTMENT SPOKESMAN SAID THE US IS CONSULTING WITH SAUDI OFFICIALS ON THE PROBLEM ALTHOUGH OTHER PERSIAN GULF NATIONS HAVE REFUSED TO ALLOW THE CHINESE SHIP TO DOCK THE US HOPES A SAUDI PORT MIGHT BE MADE AVAILABLE WHERE THE SHIP'S CARGO CAN BE INSPECTED FINALLY FIVE SENATORS LED BY TWO DEMOCRAT COMMITTEE CHAIRMEN CLAIBORNE PELL AND JOHN GLENN THREATEN TO BLOCK EFFORTS BY THE CLINTON ADMINISTRATION TO MODIFY THE MISSILE TECHNOLOGY CONTROL REGIME THE TREATY BANS THE EXPORT OF TECHNOLOGY RELATED TO SPACELAUNCH VEHICLES SUCH TECHNOLOGY IS OFTEN INDISTINGUISHABLE FROM THAT USED IN GUIDED MISSILES THE POLICY CHANGE BEING CONSIDERED WOULD ALLOW EXPORT OF SPACELAUNCH TECHNOLOGY AMONG THE TREATY'S 23 SIGNERS ON A CASEBYCASE BASIS RATHER THAN FLATLY BANNING IT A US OFFICIAL WHO ASKED NOT TO BE QUOTED SAYS THAT ALTHOUGH THE CHANGE WOULD LOOSEN THE TREATY IT ULTIMATELY MIGHT STRENGTHEN AND BROADEN THE PROLIFERATION EFFORT SOME SIGNERS OF THE TREATY SUCH AS AUSTRALIA SPAIN AND ITALY HAVE ARGUED THAT THE PACT IS TOO RESTRICTIVE ON THEIR PEACEFUL SPACE PROGRAMS IF SUCH CONCERNS AREN'T ANSWERED HE SUGGESTS THESE NATIONS ACTUALLY MAY BE DRIVEN TOWARD MISSILE PROLIFERATION THAT IS THEY MAY FEEL COMPELLED TO START DEVELOPING AND TRADING SPACELAUNCH TECHNOLOGY THEMSELVES BECAUSE THEY CAN'T GET IT ANY OTHER WAY IF SO CONTROLLING THE SPREAD OF MISSILE TECHNOLOGY COULD BECOME EVEN HARDER BUT THIS ISN'T AN EASY ARGUMENT TO SELL FOR INSTANCE HENRY SOKOLSKI A FORMER BUSH ADMINISTRATION DEFENSE DEPARTMENT OFFICIAL SAYS THE CHANGE WOULD SAFEGUARD PROLIFERATION BY CREATING LOOPHOLES THAT WOULD INVITE MORE NATIONS TO PRESS FOR MISSILERELATED TECHNOLOGY THE ADMINISTRATION OFFICIAL CALLS SUCH CHARGES A DISTORTION AND HE ADDS WE'RE DEALING WITH A REAL WORLD OUT THERE 9308160026 930816 TRADING RULES ARE UPHELD FOR SMALL ORDER SYSTEM NEW YORK A FEDERAL APPELLATE COURT ORDER UPHELD RULES FOR THE NASDAQ SMALL ORDER EXECUTION SYSTEM APPARENTLY DEALING A BLOW TO TRADING FIRMS ACCUSED OF ABUSING THE SYSTEM THE UNITED STATES COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA CIRCUIT RULED AGAINST A REQUEST BY CUSTOMERS OF ALLTECH INVESTMENT GROUP BROKERAGE WHO SOUGHT TO LIFT ALL RESTRICTIONS ON SOES TRADING WHICH IS INTENDED TO GIVE SMALL INDIVIDUAL INVESTORS QUICK AND FAIR ORDER EXECUTIONS BUT SOME BROKERAGE FIRMS DUBBED SOES BANDITS HAVE BEEN ACCUSED OF ABUSING THE SYSTEM THE RULES UPHELD BY THE COURT WERE ESTABLISHED IN 1991 BY THE SECURITIES AND EXCHANGE COMMISSION WHILE THE COURT UPHELD THE RULES IT ALSO ORDERED THAT THE SEC BETTER DEFINE THE TERM PROFESSIONAL TRADER UNDER SOES RULES PROFESSIONAL TRADERS ARE FORBIDDEN USE OF SOES A SPOKESMAN SAID OFFICIALS FROM THE NATIONAL ASSOCIATION OF SECURITIES DEALERS WERE PLEASED WITH THE COURT'S RULING THE NASD HAS PROPOSED EVEN TIGHTER RULES GOVERNING USE OF SOES THAT ARE NOW UNDER SEC CONSIDERATION SAM SCOTT ATTORNEY FOR THE PLAINTIFFS SAID THE DIFFICULTY OF THE COURT'S ORDER THAT THE SEC BETTER DEFINE WHAT CONSTITUTES PROFESSIONAL TRADING COULD WEIGH IN HIS CLIENTS' FAVOR 9308160025 930816 WHO'S NEWS GEMPLUS CARD INTERNATIONAL CORP GEMPLUS CARD INTERNATIONAL CORP GEMENOS FRANCE DAN CUNNINGHAM WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE US SUBSIDIARY OF THIS MANUFACTURER OF SMART CARDS USED FOR PUBLIC PHONES SECURITY ACCESS AND OTHER PURPOSES MR CUNNINGHAM 48 YEARS OLD HAD BEEN VICE PRESIDENT SALES AND MARKETING HE SUCCEEDS ACTING PRESIDENT GILLES LISIMAQUE 45 WHO IS ALSO EXECUTIVE VICE PRESIDENT ADVANCED DEVELOPMENT 9308160024 930816 INTERNATIONAL BRAZIL NAMES PEDRO MALAN CENTRAL BANK PRESIDENT RIO DE JANEIRO PEDRO MALAN BRAZIL'S FOREIGN DEBT NEGOTIATOR WAS APPOINTED PRESIDENT OF THE COUNTRY'S CENTRAL BANK AFTER THE RESIGNATION OF PAULO CESAR XIMENES MR XIMENES RESIGNED AFTER CLASHES WITH PRESIDENT ITAMAR FRANCO THE LATEST CLASH OCCURRED THIS MONTH AFTER BRAZIL LOPPED THREE ZEROES OFF ITS CURRENCY THE CRUZEIRO AND BEGAN CALLING IT THE CRUZIERO REAL THE FOURTH NAME CHANGE IN SEVEN YEARS MR XIMENES NOTED THAT THE CHANGE IN CURRENCIES UNDERLINES THE ILLEGAL NATURE OF THE COMMON BRAZILIAN PRACTICE OF POSTDATING CHECKS SO THAT THEY CAN'T BE CASHED UNTIL A LATER DATE MR FRANCO RETORTED THAT POSTDATING CHECKS IS ONE WAY BRAZILIANS CAN BEAT INFLATION CURRENTLY RUNNING AT 31 A MONTH AND SAID BANKS WOULD HAVE TO ACCEPT CHECKS WRITTEN OUT IN THE OLD CURRENCY MR MALAN BECOMES THE THIRD CENTRAL BANK PRESIDENT IN MR FRANCO'S EIGHT MONTHS IN OFFICE HIS NOMINATION COMES AS BRAZIL IS SEEKING TO COMPLETE PROTRACTED NEGOTIATIONS OVER ITS COMMERCIAL BANK DEBT HE IS TO BE SUCCEEDED AS CHIEF DEBT NEGOTIATOR BY ANDRE LARA RESENDE AN ECONOMIST AND BANKER NEITHER NOMINATION IS EXPECTED TO LEAD TO POLICY CHANGES AND BOTH WERE RECEIVED POSITIVELY BY BRAZIL'S BUSINESS COMMUNITY MR XIMENES WILL STAY ON AS CARETAKER PRESIDENT UNTIL MR MALAN IS CONFIRMED BY THE SENATE 9308160023 930816 CORPORATE FOCUS WITH IPO IN THE WING IS DONNA KARAN IN FASHION SPLIT WITH PARTNERS RECENT FORAYS TAKE OFF SOME OF THE GLITTER BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DONNA KARAN THE POPULAR FASHION DESIGNER WHO HAS EXPRESSED HER DESIRE TO JOIN THE BILLIONDOLLAR RANKS OF RALPH LAUREN ON SEVENTH AVENUE HAS TAKEN THE FIRST STEP BY ANNOUNCING PLANS TO GO PUBLIC BUT THE INITIAL PUBLIC OFFERING ANNOUNCED FRIDAY AND ANTICIPATED SINCE THE SPRING COMES AS SHE IS SPLITTING WITH THE LONGTIME PARTNERS AND BACKERS WHO HELPED BUILD HER BUSINESS AND EVEN AS HER EFFORTS AT A CRITICAL DIVERSIFICATION ARE POSTING SIZABLE LOSSES THAT RAISES QUESTIONS ABOUT HER ABILITY TO CONTROL THE BUSINESS ASPECTS OF HER GROWING FASHION HOUSE UNDER THE SCRUTINY OF WALL STREET THE FASHION HOUSE HOPES TO RAISE AS MUCH AS 176 MILLION BY SELLING 11 MILLION SHARES OF DONNA KARAN CORP AT 16 APIECE THAT WOULD VALUE THE COMPANY AT ALMOST 410 MILLION OR MORE THAN 14 TIMES ITS ANNUAL EARNINGS ACCORDING TO THE OFFERING'S PROSPECTUS ABOUT 815 MILLION OF THE ESTIMATED 1589 MILLION IN NET PROCEEDS WOULD BE DISTRIBUTED TO THE JOINT OWNERS OF THE PREDECESSOR COMPANY AS UNDISTRIBUTED EARNINGS THE PREDECESSOR COMPANY IS BEING RESTRUCTURED WITH THE IPO IT IS COOWNED BY MS KARAN AND HER HUSBAND STEPHAN WEISS AND TAKIHYO INC THE BUSINESS PARTNER THAT LAUNCHED THE COMPANY IN 1985 WITH A 2 MILLION INITIAL INVESTMENT TAKIHYO WHICH COMPRISES PARTNERS TOMIO TAKI AND FRANK MORI WOULD ALSO RECEIVE 443 MILLION IN CASH AND NOTES THE REMAINING 32 MILLION WOULD BE USED TO REDUCE THE COMPANY'S CREDIT FACILITY TO PROSPER AS A PUBLIC COMPANY THE KARAN ORGANIZATION WILL NEED A FOCUSED AND PROFESSIONAL EXECUTIVE MANAGEMENT THAT CAN HANDLE WALL STREET YET MESSRS TAKI AND MORI WHO HAD BEEN INTIMATELY INVOLVED IN GUIDING THE COMPANY WILL BE TAKING A MORE PASSIVE ROLE AFTER THE OFFERING AS A RESULT OF DISAGREEMENTS WITH MS KARAN AND HER HUSBAND OVER STRATEGIC DIRECTION TAKI MORI HELD BUSINESS REINS WHILE MS KARAN WAS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF HER NINEYEAROLD BUSINESS SHE FREQUENTLY HAS EXPRESSED AN AVERSION TO FINANCIAL MINUTIAE AND HAS DEVOTED HER EFFORTS ALMOST EXCLUSIVELY TO THE CREATIVE AND MARKETING SIDE FOR ME IT HAS TO BE VISUAL THE FINE PRINT DRIVES ME CRAZY SHE SAID IN A JANUARY INTERVIEW INSTEAD SHE HAD RELIED HEAVILY ON THE BUSINESS ACUMEN OF MESSRS TAKI AND MORI WHO ALSO OWN ANNE KLEIN & CO A 25YEAROLD FASHION HOUSE WHERE MS KARAN WAS A DESIGNER FROM 1974 TO 1985 THE PROSPECTUS DISCLOSES THAT THE COMPANY HAS A LONG ROAD AHEAD DONNA KARAN CORP POSTED NET INCOME OF 288 MILLION LAST YEAR ON SALES OF 2585 MILLION WITH 90 OF THAT COMING FROM ITS CORE WOMEN'S COLLECTIONS BUT THE COMPANY'S RECENT FORAYS INTO MENSWEAR CHILDREN'S WEAR AND FRAGRANCE HAVE BEEN SLOW DISAPPOINTING AND UNPROFITABLE INSTEAD OF GOING THE CONVENTIONAL ROUTE OF USING AN ESTABLISHED COSMETICS COMPANY TO MARKET THE PERFUME THROUGH A LICENSING ARRANGEMENT MS KARAN ELECTED TO DO IT INHOUSE UNDER HER HUSBAND MR WEISS WHO IS A SCULPTOR AND DESIGNED THE PERFUME BOTTLE THE DONNA KARAN NEW YORK FRAGRANCE WAS SOLD MAINLY THROUGH A TOLLFREE NUMBER FOR THE SIX MONTHS ENDED MARCH 31 1993 THE PERFUME HAD 59 MILLION OF LOSSES ON 41 MILLION OF SALES ACCORDING TO THE PROSPECTUS THE COMPANY IS IN THE MIDST OF CHANGING ITS COURSE PHASING OUT THE 800 NUMBER AND SHIFTING TO MAJOR DEPARTMENT STORES KARAN'S COLLECTION OF COUTURE MENSWEAR AND DKNY CHILDREN'S WEAR RACKED UP ABOUT 88 MILLION IN LOSSES AND ROUGHLY THE SAME AMOUNT IN SALES IN 1992 THE COMPANY FILING SAYS THE DIVISIONS ARE EXPECTED TO BREAK EVEN IN 1993 THAT LEAVES SOME PEOPLE IN THE FASHION BUSINESS WONDERING HOW WELLPREPARED FOR BUSINESS THE COMPANY'S TWO CREATIVEMINDED PRINCIPALS MS KARAN 44 AND HER HUSBAND THE 54YEAROLD MR WEISS WILL BE AS COCHIEF EXECUTIVES IN THE PUBLIC CONCERN WITH HER DEMANDING SCHEDULE TO DESIGN AND PROMOTE CORE COLLECTIONS MS KARAN HAS BEEN DESCRIBED BY MR TAKI AS STRETCHED OVER MANY PROJECTS MR WEISS HAS SERVED IN VARIOUS SUPERVISORY ROLES IN THE COMPANY AND OVERSEES ITS LICENSING VENTURES AS WELL AS EXPLORING NEW BUSINESS AVENUES THE APPAREL BUSINESS HAS TENDED TO BE HIGHLY VOLATILE FOLLOWING THE VAGARIES OF FASHION TRENDS AND RETAIL SALES SOME OF FASHION'S BRIGHTEST STOCKS HAVE NOSEDIVED LATELY SUCH AS GITANO GROUP INC AND LESLIE FAY COS BOTH VICTIMS OF OVEREXPANSION AND UNDISCIPLINED BUSINESS PRACTICES AND OPERATING UNDER CHAPTER 11 BANKRUPTCYLAW REORGANIZATION THE KARAN FASHION HOUSE HAS POSTED IMPRESSIVE SALES GROWTH THROUGHOUT ITS HISTORY RACKING UP AN AVERAGE ANNUAL COMPOUNDED GROWTH RATE OF 545 SINCE 1986 ACCORDING TO THE PROSPECTUS AND UNLIKE MANY HIGHFASHION BUSINESSES THAT TAKE MANY YEARS TO TURN A PROFIT THE KARAN ORGANIZATION GENERATED INCOME ON OPERATIONS IN ITS SECOND YEAR OF BUSINESS 1987 KARAN'S WIDELY DISTRIBUTED DKNY WOMEN'S SPORTSWEAR AND ITS DONNA KARAN NEW YORK WOMEN'S COUTURE COLLECTION GENERATED ABOUT 230 MILLION OR ALMOST 90 OF 1992 REVENUE AFTER THE OFFERING WHICH IS EXPECTED TO OCCUR THIS FALL THE COMPANY WILL HAVE ABOUT 256 MILLION SHARES OUTSTANDING WITH MS KARAN AND MR WEISS OWNING A 34 STAKE AND TAKIHYO OWNING 23 TAKIHYO'S MESSRS TAKI AND MORI WILL SIT ON THE COMPANY'S BOARD WHILE WALL STREET ANALYSTS AND MONEY MANAGERS HAVEN'T HAD A CHANCE TO REVIEW THE DONNA KARAN PROSPECTUS THEY ARE LIKELY TO FACTOR IN THE PECULIARITIES OF THE FASHION INDUSTRY AS THEY ASSESS THE STOCK'S OUTLOOK INVESTORS IN APPAREL STOCKS MUST UNDERSTAND THE VAGARIES OF THE FASHION CYCLE WHATEVER ITEM THAT IS HELPING A COMPANY DO WELL IN ONE SEASON WILL EVENTUALLY GO OUT OF STYLE SAYS MIKE DE CARLO A SENIOR VICE PRESIDENT OF THE JOHN HANCOCK SPECIAL EQUITIES FUND WHICH HAS POSITIONS IN TOMMY HILFIGER CORP JONES APPAREL GROUP AND STARTER CORP HE SAYS FASHION COMPANIES THAT SELL COMMODITY ITEMS LIKE JEANS AND TSHIRTS ARE IN A BETTER POSITION TO POST CONSISTENT EARNINGS REGARDLESS OF FADS KARAN'S DKNY COLLECTION WHICH HAD 1992 SALES OF 155 MILLION INCLUDES JEANS AND HAS A CULT FOLLOWING AMONG YOUNGER WOMEN IT HAS BEEN THE COMPANY'S CASH COW SINCE ITS INTRODUCTION IN 1989 BUT SOME RETAILERS ARE SAYING THAT DKNY'S CHANGING LOOK IS LESSENING ITS ONCE BROAD APPEAL IN THE BEGINNING DKNY WAS UNIQUE BECAUSE IT GAVE A WOMAN REALLY FASHIONABLE CASUAL CLOTHES LIKE WRAP SKIRTS AND DENIM BODY SUITS AND IT WAS FLYING OUT OF THE STORES SAYS AN EXECUTIVE AT ONE OF KARAN'S BIGGEST RETAIL ACCOUNTS BUT AS OTHER FIRMS RACED TO KNOCK OFF DKNY DONNA MOVED THREE OR FOUR STEPS IN ANOTHER DIRECTION AND THE LOOK IS N YOUNGER AND VERY DOWNTOWNLOOKING WHICH HAS MADE IT MORE DIFFICULT TO SELL GITANO GROUP INC ISN'T OPERATING UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE YESTERDAY'S CORPORATE FOCUS ARTICLE ON FASHION DESIGNER DONNA KARAN INCORRECTLY STATED THAT GITANO WAS OPERATING UNDER CHAPTER 11 PROTECTION THE COMPANY'S FOUNDERS THE DABAH FAMILY FILED FOR CHAPTER 11 PROTECTION LAST YEAR