NEW YORK SURE IT'S NERVEWRACKING BEING A STOCK INVESTOR THESE DAYS THE MARKET IS HOVERING AT ALLTIME HIGHS THE ECONOMY IS SPUTTERING AND THE WORLD'S FINANCES ARE IN DISARRAY BUT ANALYSTS SCANNING THE MARKET DATA FOR SIGNS OF AN IMPENDING BEAR MARKET SAY RELAX FEW OF THOSE SIGNS ARE EVIDENT AND THOSE THAT ARE CAN BE SAFELY IGNORED ONE OF THE MOST COMPELLING SIGNS THAT A BULL MARKET IS ABOUT TO GIVE WAY TO A BEAR MARKET IS THE TENDENCY AMONG INVESTORS TOWARD UNDUE OPTIMISIM SAYS LASZLO BIRINYI A STOCK MARKET STRATEGIST IN GREENWICH CONN THE LOGIC OF COURSE IS THAT HIGHLY OPTIMISTIC INVESTORS ALREADY HAVE PUT THEIR MONEY TO WORK IN THE MARKET LEAVING LITTLE OR NO FUEL TO POWER PRICES EVEN HIGHER MANY STOCK ANALYSTS GAUGE MARKET SENTIMENT BY DETERMINING HOW MANY INVESTORS ARE BULLS OR BEARS THE LATEST READING SHOWED AN EVEN SPLIT WITH 386 OF INVESTORS BULLISH AND AND EQUAL NUMBER BEARISH BUT MR BIRINYI CLAIMS A MORE EFFECTIVE GUIDE IS SIMPLY TO READ THE BUSINESS PRESS SENTIMENT IS ONE OF THOSE ANECDOTAL INDICATORS YOU CAN'T LOOK FOR IN A DATABASE OR QUANTIFY HE ARGUES ANYONE WHO FOLLOWED THE USUAL BULLBEAR INDICATORS DURING THE 1980S WOUND UP LEAVING SOME HANDSOME PROFITS ON THE TABLE HE ADDS MR BIRINYI GETS HIS SENSE OF SENTIMENT BY NOTING THE PREVALENCE OF SUCH THINGS AS ARTICLES ABOUT THE DANGERS CURRENTLY CONFRONTING THE STOCK MARKET LOTS OF CAUTIONARY STORIES IN THE PRESS HE SAYS ARE A SURE SIGN THAT INVESTORS ARE FAR FROM REACHING THE COMFORT STAGE THAT COULD TRIGGER A BEAR MARKET FOR EXAMPLE THERE HAS BEEN LOTS OF COVERAGE OF THE STOCK MARKET'S DIVIDEND YIELD WHICH IS THE RATIO OF DIVIDENDS PAID TO OVERALL STOCK PRICES THE NOTION THAT A DIVIDEND YIELD OF LESS THAN 3 IS DANGEROUS HAS BEEN BANDIED ABOUT EVER SINCE THE YIELD FELL BELOW THAT POINT IN JANUARY 1992 IT CURRENTLY STANDS AT 282 DON'T WORRY SAYS MR BIRINYI ALL THAT FRETTING IS A SURE SIGN THAT INVESTORS ARE EDGY HE ADDS THAT PRIOR TO THE OCTOBER 1987 STOCK MARKET CRASH THERE WAS VIRTUALLY NO DISCUSSION OF THE DIVIDEND YIELD EVEN THOUGH YIELDS WERE LOWER AT 269 IN AUGUST 1987 THAN THEY ARE TODAY MR BIRINYI DOESN'T IGNORE STATISTICS HIS MAIN STATISTICAL TOOL FOR GAUGING THE LIKELIHOOD OF A BEAR MARKET IS TO DETERMINE WHICH STOCKS OR GROUPS OF STOCKS ARE IN EXTENDED RALLIES LOOKING AT THE PERFORMANCE OF STOCK GROUPS FROM 1964 TO 1991 MR BIRINYI FOUND FOR INSTANCE THAT CHEMICALS ON AVERAGE RALLY 30 FROM A TROUGH RETAILERS CLIMB 37 AND SEMICONDUCTORS RISE ABOUT 41 FOR EXAMPLE IF THE CHEMICAL GROUP RALLIED MORE THAN 30 FROM ITS BOTTOM IT WOULD BE CONSIDERED TO BE IN AN EXTENDED RALLY BY THESE MEASURES 15 OUT OF 17 MAJOR STOCK GROUPS WERE IN EXTENDED RALLIES DURING THE SUMMER OF 1987 A CLEAR WARNING SIGNAL BUT AT THE END OF LAST WEEK THERE WERE NO MAJOR STOCK GROUPS IN EXTENDED RALLIES INDEED SIX OUT OF 16 GROUPS WERE IN DECLINES WHICH MR BIRINYI SAYS IS ENCOURAGING IT'S HEALTHY YOU ARE HAVING THESE CORRECTIONS AND IT'S TAKING PLACE WITHOUT HURTING THE MARKET SAYS MR BIRINYI FINALLY LIKE MANY OTHER ANALYSTS MR BIRINYI LOOKS AT THE PACE OF NEWSTOCK OFFERINGS TO DETERMINE WHETHER THE STOCK MARKET IS GETTING SO OVERHEATED THAT IT IS IN DANGER OF A MELTDOWN BUT HE DOESN'T MEASURE JUST THE RATE OF INITIAL PUBLIC OFFERINGS MORE IMPORTANT HE SAYS IS WHETHER IPOS ARE SOAKING UP MOST OF THE MONEY AVAILABLE TO GO INTO THE STOCK MARKET ALTHOUGH THE RATE OF IPO ISSUANCE IS AT A RECORD HE NOTES INITIAL OFFERINGS ARE ABSORBING JUST A THIRD OF THE MONEY BEING PAID TO STOCKHOLDERS THROUGH DIVIDENDS IF YOU'RE WORRIED ABOUT HEAVY IPO ISSUANCE SOAKING UP A LOT OF MONEY IT'S NOT HE SAID STILL HE ACKNOWLEDGES THAT THERE IS A TOUCH OF MANIA IN THE WAY SOME NEW ISSUES ARE SKYROCKETING THERE SHOULD BE A LITTLE BIT OF CONCERN WHEN YOU SEE THESE GYMBOREES AND SNAPPLES HE SAYS OF TWO HOT IPOS I DON'T KNOW WHAT SNAPPLE IS PUTTING IN THEIR LEMONADE BUT THE MARKET SEEMS TO THINK IT IS MORE THAN WATER AND SUGAR OTHER ANALYSTS WHO USE DIFFERENT TOOLS TO FORECAST BEAR MARKETS AGREE THAT THE LIKELIHOOD OF ONE ANYTIME SOON IS REMOTE BESIDES EXAMINING INTERNAL MARKET DYNAMICS SUCH AS TRADING VOLUME AND MARKET BREADTH AC MOORE A MARKET STRATEGIST AT ARGUS INVESTMENT MANAGEMENT IN SANTA BARBARA CALIF TRACKS MONETARY INDICATORS PARTICULARLY THE RELATIONSHIP BETWEEN INTEREST RATES AND EARNINGS THAT RELATIONSHIP IS VERY IMPORTANT HE SAYS HE WOULD BE SOMEWHAT WORRIED HE SAID IF RATES WERE RISING INTEREST RATES CAN RISE BUT IF EARNINGS ARE EXPANDING VERY RAPIDLY INTEREST RATE HIKES DON'T BRING ON A BEAR MARKET BUT WITH LONGTERM RATES HITTING NEW 16YEAR LOWS IN THE PAST WEEK HE DISMISSES THE POSSIBILITY THAT A BEAR MARKET MIGHT BE LOOMING STILL SOME ANALYSTS ARE LESS CONFIDENT PHILIP ROTH TECHNICAL ANALYST AT DEAN WITTER REYNOLDS NOTES THAT 64 OF STOCKS ARE TRADING ABOVE THEIR 200DAY MOVING AVERAGES THAT'S MODESTLY BULLISH BUT HE CAUTIONS INVESTORS TO KEEP A CLOSE EYE ON THAT GAUGE IF THAT NUMBER FALLS BELOW 50 IT WILL MEAN THAT FEWER THAN HALF THE STOCKS ARE IN A BULL MARKET CONFIGURATION HE SAYS THAT DOESN'T NECESSARILY MEAN A BEAR MARKET IS DEVELOPING BUT IT DOES SERVE AS AN EARLYWARNING SIGNAL HE ALSO CONSIDERS TRADING VOLUME IF STOCK PRICES ARE RISING BUT VOLUME IS SHRINKING BEWARE HE SAYS THAT'S A SIGN OF AN AGING BULL MARKET IT'S ALSO A SIGN THAT'S CLEARLY EVIDENT RIGHT NOW HE ADDS STOCKS INCHED HIGHER GAINING LITTLE STRENGTH FROM A TAME INFLATION REPORT THE DOW JONES INDUSTRIAL AVERAGE EDGED UP 056 POINT TO 356965 STANDARD & POOR'S 500STOCK INDEX ROSE 118 TO 45014 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 053 TO 24970 VOLUME ON THE BIG BOARD TOTALED 212750000 SHARES A MARKED DROPOFF FROM THE 278460000 TRADED THURSDAY ADVANCING ISSUES BEAT DECLINERS 1028 TO 860 STOCKS SURGED INITIALLY ON A BETTERTHANEXPECTED REPORT ON JULY CONSUMER PRICES AND FALLING INTEREST RATES BUT THE BUYING TAPERED OFF AS INVESTORS FOCUSED ON A DISAPPOINTING REPORT ON EARLYAUGUST AUTO SALES THE REPORT WHICH REAWAKENED CONCERNS ABOUT THE STRENGTH OF THE ECONOMIC RECOVERY SENT AUTO STOCKS SKIDDING GENERAL MOTORS SLID 1 1/2 TO 45 3/4 CHRYSLER EASED 1/2 TO 42 1/2 AND FORD LOST 1/2 TO 51 7/8 FOR THE WEEK THE INDUSTRIALS AVERAGE S&P 500 AND NEW YORK COMPOSITE INDEX EACH CLIMBED 03 TELEFONOS DE MEXICO WAS THE MOST ACTIVE STOCK ON THE BIG BOARD RISING 2 TO 52 THE STOCK SURGED AFTER NEGOTIATORS SAID THEY HAVE REACHED AN ACCORD ON THE ENVIRONMENTAL AND LABOR ISSUES THAT HAD DELAYED APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT BAXTER INTERNATIONAL FELL 1 3/4 TO 24 IN HEAVY TRADING THE DEPARTMENT OF VETERANS AFFAIRS SAID IT IS PROPOSING SUSPENDING THE COMPANY AND ITS UNITS FROM COMPETING FOR NEW GOVERNMENT CONTRACTS T2 MEDICAL TUMBLED FOR THE SECOND STRAIGHT DAY PLUNGING 1 7/8 TO 7 THE DEPARTMENT OF HEALTH AND HUMAN SERVICES CONFIRMED THAT THE COMPANY IS ONE OF SEVERAL TARGETS OF INVESTIGATIONS INTO POSSIBLE MEDICARE FRAUD WOLVERINE TUBE WAS UNCHANGED AT 15 3/4 THE COMPANY WHICH MAKES COPPER AND ALLOY TUBING SOLD 57 MILLION COMMON SHARES IN AN INITIAL PUBLIC OFFERING PRICED LATE THURSDAY AT 1550 EACH THROUGH UNDERWRITERS LED BY FIRST BOSTON COMSAT SLUMPED 1 7/8 TO 28 5/8 SALOMON BROTHERS ANALYST DANIELLE DANESE CUT HER RATING ON THE GLOBAL TELECOMMUNICATIONS CONCERN TO HOLD FROM BUY QUALMED JUMPED 1 5/8 TO 13 THE COMPANY WHICH MANAGES HEALTH MAINTENANCE ORGANIZATIONS REPORTED ITS SECONDQUARTER PROFIT SHRUNK TO 14 CENTS A SHARE FROM 21 CENTS A YEAR AGO BUT THE COMPANY SAID THAT THE LATEST QUARTER'S EARNINGS WERE DRAGGED DOWN BY A EIGHTCENTASHARE CHARGE 9308160021 930816 COMMODITIES HUGE INVENTORIES KEEP COCOA PRICES DEPRESSED BUT ANALYSTS EXPECT REVIVAL IN THE COMING YEAR BY NEIL BEHRMANN SPECIAL TO THE WALL STREET JOURNAL LONDON HUGE INTERNATIONAL STOCKPILES ARE KEEPING COCOA PRICES DEPRESSED BUT ANALYSTS AND DEALERS ARE EXPECTING A REVIVAL IN THE COMING YEAR THE COCOA PRICE OUTLOOK IS UNEQUIVOCALLY BULLISH SAYS LAWRENCE EAGLES AN ANALYST AT GNI LTD LONDON COMMODITY BROKERS FOR TWO YEARS RUNNING DEMAND HAS EXCEEDED PRODUCTION HE SAYS HENCE WITH THE PROSPECT OF SMALLER CROPS IN THE COMING SEASON CONSUMERS WILL WHITTLE DOWN INVENTORIES THAT WERE ACCUMULATED DURING TIMES OF PLENTY HE PREDICTS MR EAGLES SAYS HE WOULDN'T BE SURPRISED TO SEE PRICES CURRENTLY AROUND 925 A METRIC TON FOR SEPTEMBER DELIVERY RISE FOURFOLD BY THE MID1990S SUCH A SURGE WOULD BE SIMILAR IN SCALE TO COCOA BOOMS IN THE 1970S YET FOLLOWING SEVERAL ABORTIVE PRICE RALLIES IN THE PAST FEW YEARS SOME DEALERS AND ANALYSTS REMAIN SKEPTICAL THERE ARE SIGNS THAT THE MARKET IS BOTTOMING BUT IT IS FAR TOO SOON TO FORECAST CROP LEVELS SHORTFALLS AND A MAJOR PRICE SURGE SAYS TONY CHADWICK COCOA ANALYST AT PRUDENTIALBACHE FUTURES LTD IN LONDON COCOA PRICES IN NEW YORK PLUNGED TO A LOW OF 782 IN MID1992 FROM 1650 IN EARLY 1989 THE MARKET THEN INCREASED 50 IN SUBSEQUENT MONTHS BUT SLID TO 880 A TON IN JUNE THIS YEAR BOOSTED BY REPORTS THAT THE IVORY COAST THE WORLD'S BIGGEST PRODUCER HAD MARKEDLY REDUCED EXPORTS SPOT PRICES ONCE AGAIN SURGED TO 1040 IN JULY YET THE RALLY IN TURN SOON FADED BECAUSE MARKET PARTICIPANTS GREW CONVINCED THAT THERE WAS MORE THAN SUFFICIENT COCOA AVAILABLE WORLDWIDE DEALERS SAY TO BE SURE WORLD INVENTORIES AT THE END OF SEPTEMBER WILL REACH 1380000 METRIC TONS ACCORDING TO FORECASTS BY THE INTERNATIONAL COCOA ORGANIZATION AN INTERGOVERNMENTAL BODY CONTROLLED BY PRODUCER AND CONSUMING NATIONS THIS IS EQUIVALENT TO ABOUT SEVEN MONTHS' CONSUMPTION EASILY SUFFICIENT TO SATISFY DEMANDS OF CHOCOLATE MANUFACTURERS FOR NOW MOREOVER PRODUCING AND CONSUMING NATIONS AGREED AT THE END OF LAST MONTH TO LIQUIDATE ABOUT 230000 TONS OF A STOCKPILE HELD BY THE COCOA ORGANIZATION THE INVENTORY IS EXPECTED TO BE SOLD IN SEVERAL TRANCHES IN THE NEXT FEW YEARS OFFICIALS SAY CONSUMERS AND PRODUCERS WILL DISCUSS SALES STRATEGIES IN A MEETING TO BE HELD NEXT MONTH IN LONDON LEAVING THE MARKET NERVOUS AHEAD OF A DECISION PARADOXICALLY SALES FROM THE COCOA ORGANIZATION'S STOCKPILE WILL BE POSITIVE FOR THE MARKET MR EAGLES CONTENDS THE MARKET WILL BECOME USED TO REGULAR SALES OVER A LENGTHY PERIOD AND WILL EASILY ABSORB THE COCOA LIQUIDATION OF THE STOCKPILE AND ANOTHER SUPPLY DEFICIT NEXT YEAR COULD COMBINE TO CUT INTERNATIONAL COCOA INVENTORIES TO ONLY FOUR MONTHS' CONSUMPTION MR EAGLES SAYS ALTHOUGH PRICE FORECASTS DIFFER GREATLY MOST ANALYSTS AND DEALERS AGREE THAT COCOA'S SUPPLYANDDEMAND FUNDAMENTALS ARE IMPROVING IN THE PAST DECADE WORLD CONSUMPTION OF COCOA ROSE 43 TO 2440000 TONS ACCORDING TO THE COCOA ORGANIZATION COCOA PRICES SLID OVER THE PAST 10 YEARS MAINLY BECAUSE THE IVORY COAST MALAYSIA AND INDONESIA BOOSTED WORLD OUTPUT 52 IN THE SAME PERIOD MORE RECENTLY IT BECAME EVIDENT THAT CONSUMPTION WAS BEGINNING TO OUTPACE PRODUCTION PARTIALLY DUE TO LOWER PRICES SAYS PETER GREENHALGH AN ANALYST AT LANDELL MILLS COMMODITIES STUDIES A CONSULTANCY BASED IN OXFORD ENGLAND SUPPLY IS SLOWING FOR A VARIETY OF REASONS WITH OUTPUT DROPPING IN BOTH BRAZIL AND MALAYSIA AMONG OTHER PRODUCING REGIONS IN MALAYSIA FOR INSTANCE PRODUCTION OF COCOA IS FALLING AS FARMERS TURN TO MORE PROFITABLE COMMODITIES SUCH AS PALM OIL MOREOVER THIRD WORLD COCOAPRODUCING COUNTRIES HAVE INSUFFICIENT ACCESS TO INSECTICIDES SO THAT THERE ARE CONTINUAL THREATS OF WEEVILS AND CROPDAMAGING BLIGHTS INCLUDING THE COCOATREE FUNGAL DISEASES BLACK POD AND WITCHES' BROOM MEANWHILE FEWER COCOA TREES ARE BEING PLANTED DEALERS SAY THERE ARE ALSO SIGNS THAT PRODUCERS MAY SOON FIND WAYS TO PROP UP PRICES WITH THE COOPERATION OF CONSUMERS THROUGH NEGOTIATED AGREEMENTS PRODUCER AND CONSUMING NATIONS SURPRISED THE MARKET LATE LAST MONTH WHEN THEY NEGOTIATED A NEW INTERNATIONAL COCOA AGREEMENT INSTEAD OF SUBMITTING PROPOSALS TO INTERVENE IN THE MARKET A PRODUCTION MANAGEMENT COMMITTEE OF PRODUCERS AND CONSUMERS WAS ESTABLISHED TO DISCUSS MUTUALLY AGREED WAYS TO LIMIT OUTPUT AND ENCOURAGE CONSUMPTION FIVE PRODUCERS LED BY THE IVORY COAST WERE KEEN TO LOWER PRODUCTION AN INTERNATIONAL COCOA ORGANIZATION OFFICIAL SAYS NEVERTHELESS MANY ANALYSTS HAVE LITTLE FAITH IN SUCH AGREEMENTS WHICH OFTEN PROVE UNENFORCEABLE THE AGREEMENT DOESN'T HAVE ANY TEETH NOTES MR GREENHALGH OF LANDELL MILLS LOOKING AHEAD TO OTHER COMMODITY MARKETS THIS WEEK TRADERS WILL LOOK FOR SIGNS WHETHER GOLD CAN RECOUP SOME OF ITS SHARP LOSSES FROM LAST WEEK ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR DECEMBER DELIVERY SETTLED AT 37260 AN OUNCE UP 190 MOST ANALYSTS SEE GOLD TRADING IN A RANGE OF 365 TO 380 AN OUNCE WITH THE SUPPORT LEVEL OF 365 SEEN AS CRITICAL EVERYBODY SEES THE 365ANOUNCELEVEL AS VERY IMPORTANT SAID SCOTT MEYERS SENIOR ANALYST WITH REDEL TRADING IN NEW YORK IF DECEMBER BREAKS 365 ON A SETTLEMENT BASIS THAT WOULD BE A VERY STRONG TECHNICAL SIGNAL TO SELL HE SAID ADDING YOU'VE GOT A REAL CLOUDY PICTURE FOR GOLD RIGHT NOW YOU HAVE TO LOOK OVER YOUR SHOULDER IF YOU'RE BULLISH 9308160020 930816 MANAGEMENT HAFT FEUD THREATENS FAMILY'S EMPIRE BY TERI AGINS AND MEG COX STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE HAFT FAMILY FEUD BRIMMING WITH MORE SUBPLOTS THAN A TAWDRY TV MOVIE IS STARTING TO DISRUPT THE FAMILY'S PUBLIC AND PRIVATE COMPANIES THREATENING THE BREAKUP OF A REALESTATE AND RETAILING EMPIRE THE SAGA INVOLVING CORPORATE POWER PLAYS FATHERSON RIVALRY AND ALLEGATIONS OF SEXUAL INFIDELITY AND PHYSICAL ABUSE BEGAN IN JUNE AS A SIMPLE SUCCESSION STRUGGLE BETWEEN DART GROUP CORP CHAIRMAN HERBERT HAFT 72 YEARS OLD AND HIS SON ROBERT 40 IT HAS SINCE MUSHROOMED INTO A FULLSCALE FAMILY WAR IN WHICH THE HAFT COMPANIES INCLUDING THREE THAT ARE PUBLICLY HELD BUT CONTROLLED BY THE FAMILY ARE BEING USED AS PAWNS THE ENRAGED FAMILY PATRIARCH IS MAKING ABRUPT SHIFTS IN BUSINESS STRATEGY AND FIRING SEASONED MANAGERS AND ADVISERS HE HAS REPLACED ROBERT WHO HAD ESTABLISHED A STRONG TRACK RECORD WITH 34YEAROLD SON RONALD AN UNTESTED AND UNPROVEN MANAGER THE COURT BATTLES NOW UNDER WAY THREATEN TO DIVERT HERBERT AND WHAT'S LEFT OF HIS MANAGEMENT TEAM FROM PRESSING BUSINESS AND THE LEGAL JOUSTING COULD TIE UP THE HAFT PROPERTIES IN THE COURTS FOR YEARS WITH POSSIBLE DETRIMENTAL BUSINESS CONSEQUENCES IN THE MEANTIME THE PUBLIC COMPANIES DART GROUP CROWN BOOKS CORP AND AUTOPARTS RETAILER TRAK AUTO CORP MAY FACE THE MOST RADICAL CHANGE THE SENIOR MR HAFT HASN'T OVERSEEN THEM CLOSELY FOR YEARS INDEED CROWN BOOKS WHOSE EARNINGS FELL 29 IN THE SECOND QUARTER WAS THE PURVIEW AND SINGULAR VISION OF THE OUSTED ROBERT WHO DEVELOPED THE DISCOUNT BOOK CHAIN FROM A THESIS HE WROTE AT HARVARD BUSINESS SCHOOL CROWN FACES KEEN COMPETITION FROM SUPERSTORES WHICH HAVE MORE TITLES AND AMENITIES AND WHICH DISCOUNT ALMOST AS DEEPLY IT'S UNCLEAR WHETHER HERBERT HAFT WILL COMMIT THE MILLIONS NECESSARY TO OPEN A RAFT OF BIGGER STORES GILBERT HARRISON CHAIRMAN OF FINANCO INC A NEW YORK INVESTMENT BANK SERVED DART IN RECENT YEARS UNTIL THE SENIOR MR HAFT FIRED HIM RECENTLY AS AN ALLY OF ROBERT HE SAYS ROBERT WAS INSTRUMENTAL IN HIRING STRONG EXECUTIVE MANAGEMENT ESPECIALLY AT CROWN THE QUESTION REMAINS AS TO WHETHER THE MANAGEMENT WILL BE ABLE TO STAND UP TO SOME OF HERBERT HAFT'S UNTHOUGHTOUT BUSINESS DEMANDS SOME SHAREHOLDERS ARE BAILING OUT IT'S NOT IN OUR BEST INTEREST TO OWN SHARES IN A COMPANY WHOSE DESTINY IS BEING DETERMINED BY FAMILY TURMOIL AND LAWSUITS RATHER THAN BUSINESS FUNDAMENTALS SAYS TIM EBRIGHT SENIOR VICE PRESIDENT OF EAGLE ASSET MANAGEMENT INC ST PETERSBURG FLA WHICH SOLD ITS 50000 CROWN SHARES IN THE PAST SIX WEEKS UNTIL RECENTLY THE HAFTS WERE A MODEL FAMILY DYNASTY PROMINENT AMONG WASHINGTON'S BUSINESS ELITE HERBERT THE SON OF A RUSSIAN IMMIGRANT DRUGGIST AND HIS WIFE GLORIA FOUNDED THEIR FIRST DART DISCOUNT DRUGSTORE IN 1954 ALL THREE OF THEIR CHILDREN EVENTUALLY JOINED THEM IN BUSINESS TOGETHER THEY BUILT AN EMPIRE NOW VALUED AT MORE THAN 500 MILLION WITH HIS TRADEMARK WHITE POMPADOUR HERBERT AN AUTOCRATIC TABLEPOUNDER WHO TERRIFIED EMPLOYEES WAS DART'S DOMINATING PRESENCE FOR YEARS BUT BY THE MID1970S HIS IMPACT WAS MUTED BY ROBERT'S MORE PROFESSIONAL AND PLEASANT DEMEANOR IN THE 1980S THE FATHERSON TEAM EMERGED AS FORMIDABLE PLAYERS OF THE GREENMAIL GAME THEY BOUGHT SMALL STAKES IN SUCH COMPANIES AS FEDERATED DEPARTMENT STORES INC AND STOP & SHOP COS AND THEN SOLD THEM BACK TO THE COMPANIES AT PREMIUM PRICES SUCH FORAYS ADDED ABOUT 130 MILLION TO DART'S COFFERS BUT THE HARMONY ENDED BY THIS SPRING WHEN HERBERT HAFT CHANGED HIS MIND ABOUT RETIRING AND RENEGED ON A PROMISE TO CEDE CONTROL TO ROBERT HIS OLDEST CHILD THAT TRIGGERED A SERIES OF EVENTS THAT TORE THE FAMILY APART GLORIA HAFT HERBERT'S WIFE AND BUSINESS PARTNER OF 46 YEARS SIDED WITH ROBERT AND SO DID LINDA ROBERT'S 43YEAROLD SISTER IN JUNE HERBERT KICKED HIS WIFE AND ROBERT OFF DART'S BOARD AND FIRED DIRECTORS WHO SUPPORTED THE TWO HE ALSO FIRED ROBERT FROM SENIOR POSTS AT DART CROWN AND TRAK LATER DEEMING HIS LONGTIME HEIR APPARENT INCOMPETENT LAST WEEK ROBERT SUED THE COMPANIES IN FEDERAL DISTRICT COURT IN DELAWARE SEEKING 9 MILLION HE SAYS HE IS OWED UNDER A LONGTERM CONTRACT THEN THE PATRIARCH TURNED TO HIS YOUNGEST CHILD RONALD WITH WHOM HE HAD NEVER BEEN CLOSE RONALD IS NOW PRESIDENT OF DART AND A DIRECTOR AT DART CROWN AND TRAK POSITIONS FOR WHICH SOME INSIDERS SAY HE ISN'T QUALIFIED HE DID EARN AN UNDERGRADUATE BUSINESS DEGREE AT THE UNIVERSITY OF PENNSYLVANIA'S WHARTON SCHOOL AND HAS RUN THE FAMILY'S REALESTATE INTERESTS BUT HE IS SAID TO BE AN ASPIRING ACTOR WHO SPENT MUCH OF HIS TIME AT HIS HOMES IN CALIFORNIA IN COURT PAPERS GLORIA HAFT SAYS HER YOUNGEST CHILD IS ILL EQUIPPED TO RUN DART HAVING NEVER WORKED FOR DART FOR ANY OF THE PUBLIC COMPANIES OR IN ANY OTHER FULLTIME RETAIL POSITION HERBERT HAFT AND HIS LAWYERS DECLINE TO COMMENT ON THE FEUD ROBERT HAFT SAYS IN AN INTERVIEW ALTHOUGH HE'S A DIFFICULT MAN I'VE ALWAYS LOVED MY DAD BUT NOW I WORRY ABOUT THE IMPACT HIS ACTIONS WILL HAVE ON OUR FAMILY AND THE COMPANIES WE BUILT TOGETHER HE ADDS IT'S PAINFUL THAT HERBERT HAFT HAS BROUGHT US TO THIS NO ONE WINS IN FIGHTS LIKE THIS INSIDERS SAY HERBERT HAFT HAS FALLEN INTO A SIEGE MENTALITY EVIDENT AT THE WASHINGTON HEADQUARTERS OF COMBINED PROPERTIES PARENT COMPANY FOR THE FAMILY'S SHOPPINGMALL PROPERTIES A SIGNED MEMO FROM MR HAFT TO THE STAFF SHOWS HE HAS CHANGED THE LOCKS AND INSTALLED GUARDS AT THE GATE OF THE BUILDING GLORIA HAFT HASN'T BEEN ALLOWED TO ENTER OR TO RETRIEVE ANY OF HER PERSONAL EFFECTS THERE THE BIGGEST THREAT TO MR HAFT NOW APPEARS TO COME FROM GLORIA MRS HAFT 66 SUED HER HUSBAND LAST WEEK IN DISTRICT OF COLUMBIA SUPERIOR COURT SEEKING A LEGAL SEPARATION AS A STEP TOWARD DIVORCE IN THE COMPLAINT SHE CHARGES THAT MR HAFT HAD COMMITTED ADULTERY FOR YEARS HAD PHYSICALLY AND VERBALLY ABUSED HER AND HAD CONSPIRED TO DESTROY HER FINANCIALLY MORE IMPORTANT SHE IS SEEKING CONTROL OF EITHER THE PUBLIC COMPANIES OR THE CLOSELY HELD REALESTATE BUSINESSES IF SUCCESSFUL SHE WOULD EFFECTIVELY BREAK UP THE HAFT EMPIRE GLORIA HAD A CENTRAL ROLE IN FOUNDING AND RUNNING THE FAMILY FIRMS HERBERT HOLDS A 57 VOTING STAKE IN DART GLORIA 18 AND THE THREE CHILDREN 83 EACH DART IN TURN OWNS 51 OF CROWN AND 66 OF TRAK AUTO BUT IF HERBERT AND GLORIA DIVORCE A COURT MIGHT SPLIT HERBERT'S HOLDINGS BETWEEN HIM AND HIS WIFE ON WALL STREET MANY MONEY MANAGERS SAY A BREAKUP OF THE HAFT HOLDINGS WOULD SPARK A BIG RISE IN THE PRICE OF DART CROWN AND AUTO TRAK SHARES DART SHARES ROSE 2 TO 8350 IN NATIONAL OVERTHECOUNTER TRADING FRIDAY BUT ROBERT ROBOTTI OF ROBOTTI & ENG A WALL STREET RESEARCH FIRM THAT MAKES A MARKET IN DART SHARES SAYS THEY ARE REALLY WORTH 138 TO 170 AND CROWN AND TRAK ALSO TRADE AT DISCOUNTS THE FAMILY'S HOLDINGS COULD WELL BE TIED UP IN THE COURTS FOR YEARS HOWEVER WHILE COMPETITIVE PRESSURES POUND AWAY AT THE BUSINESSES THE LAWSUITS WILL BE NEGATIVE TO THE CORPORATE ENTITY AS A WHOLE SAYS MR ROBOTTI FAMILYBUSINESS EXPERTS AGREE IT'S PRETTY CLEAR TO ME THAT THERE'S NO GOOD OUTCOME ANY WAY YOU LOOK AT THIS SAYS W GIBB DYER JR PROFESSOR OF ORGANIZATIONAL BEHAVIOR AT BRIGHAM YOUNG UNIVERSITY YOU HAVE A FOUNDER WHO STILL HAS A CLEAR NEED TO RUN THIS BUSINESS AND A BIG EGO HE HAS ALIENATED HIS SON AND WIFE AND IN A CASE LIKE THISNCE THE LAWYERS GET INVOLVED IT IS ALL DOWNHILL IT WILL PROBABLY DRAG ON FOR YEARS IN RECENT WEEKS HERBERT HAFT HAS FIRED ROBERT'S SECRETARY DART'S LAWYERS AT WILKE FARR & GALLAGHER IN NEW YORK AND ITS INVESTMENT BANKERS AT FINANCO HE NOW REVIEWS ALL OF THE EMPIRE'S REALESTATE DEALS THUS ADDING ANOTHER LAYER OF BUREAUCRACY AND GRINDING THINGS TO A HALT ONE INSIDER SAYS AMONG OTHER STRATEGY SHIFTS MR HAFT HAS GONE ON AN EXPANSION BINGE DIRECTING PUBLICLY HELD CROWN TO EXPAND IN SHOPPING CENTERS OWNED BY HIS CLOSELY HELD COMBINED PROPERTIES HE ORDERED THAT A CROWN STORE IN A COMBINED PROPERITIES MALL IN ROCKVILLE MD EXPAND TO 40000 SQUARE FEET FROM 8000 THOUGH CROWN HAD CONSIDERED CLOSING THE STORE BECAUSE OF SLUGGISH SALES NEITHER THE SENIOR MR HAFT NOR HIS LAWYER RETURNED CALLS SEEKING COMMENT ON THESE CHANGES AS A CLUE TO HOW THE FAMILY FEUD WILL PLAY OUT SOME PEOPLE WHO KNOW THE HAFTS POINT TO WHAT HAPPENED ON FATHER'S DAY HERBERT HAFT HAD ALREADY FIRED HIS OLDEST CHILD BY THEN BUT ROBERT NONETHELESS DECIDED IT MIGHT BE NICE TO TAKE HIS OWN TWO CHILDREN TO SEE THEIR GRANDFATHER HE CALLED HIS FATHER'S OFFICE ASKING WHETHER HE COULD BRING THE GRANDCHILDREN BY HERBERT HAFT'S RESPONSE WAS DELIVERED BY A SECRETARY HE HAD OTHER PLANS 9308160019 930816 THE OLD RED ARMY IS TURNING TO GREENS AS IN VEGETABLES OFFICERS PUT OUT TO PASTURE FIND ACRES OF HEADACHES IN DRIVE TO BECOME FARMERS BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL SMOLENSK RUSSIA THERE ARE TOO MANY SOLDIERS IN RUSSIA ON THE OTHER HAND THERE AREN'T ENOUGH FARMERS ANATOLI DEMBITSKY IS TRYING TO HELP SOLVE BOTH PROBLEMS THE 50YEAROLD MILITARY OFFICER HAS PUT DOWN HIS SWORD AND PICKED UP A PLOWSHARE TAKING OVER A PATCH OF PRIVATE FARMLAND IN WESTERN RUSSIA'S SMOLENSK REGION BUMPING ALONG ON A SMALL SOVIETBUILT TRACTOR LT COL DEMBITSKY STRUGGLES TO KEEP IN A STRAIGHT LINE AS HE CHURNS UP CLODS OF SOFT SOIL I SPENT MY ENTIRE LIFE DRIVING TANKS SAYS RUSSIA'S NEWEST FARMER DRESSED FOR WORK IN GREEN ARMY FATIGUES AND A BLACK BERET THAT OUGHT TO HELP RIGHT RUSSIA HOPES SO THE NATION'S PRIDE HAS LONG BEEN ITS MILITARY ITS SHAME HAS BEEN ITS AGRICULTURE SO MOSCOW IS OFFERING INCENTIVES TO ENTICE MILITARY MEN TO THE COUNTRYSIDE AS PRIVATE FARMERS JOBS FOR WHICH FEW CIVILIANS HAVE VOLUNTEERED BEST OF ALL THE PLAN COULD KEEP BUSY RUSSIA'S HUGE SURPLUS OF DEMOBILIZED OFFICERS TENS OF THOUSANDS SINCE THE BREAKUP OF THE SOVIET UNION WHO FORM A POTENTIALLY DESTABILIZING FORCE IN RUSSIAN SOCIETY THE RUSSIAN SOLDIER IS A TRAINED KILLER SAYS VALERI ISAYEV PRESIDENT OF SOZIDANIE A RUSSIAN COMPANY THAT FINANCES MILITARY FARMERS BUT WHEN THESE MEN LEARN TO PRODUCE RUSSIA WILL HAVE ITS NEW GENTRY BUT IN PRESENTDAY RUSSIA BEING AN OFFICER EVEN IN A DEMORALIZED CHAOTIC ARMY IS PROBABLY EASIER THAN BEING A FARMER JUST ASK LEONID GALCHUK A FORMER LIEUTENANT COLONEL THE POTBELLIED OFFICER ONCE DIRECTED A REGIMENT OF SOVIET BORDER GUARDS IN RUSSIA'S FAR EAST NOW HE MANS A MODEST OAT FIELD ON A QUIET HILLSIDE IN VLADIMIR AN ANCIENT RUSSIAN TOWN 100 MILES FROM MOSCOW AS HE STROLLS ALONG A DIRT ROAD LEADING TO HIS LAND HE REFLECTS ON THE STRANGE END TO A CAREER LITERALLY SPENT DEFENDING SOCIALISM FROM CAPITALIST INFLUENCE TODAY AS A MEMBER OF A DISPIRITED 400000STRONG OFFICER CORPS THAT IS UNAPPRECIATED UNDERPAID AND FREQUENTLY FORCED TO LEAVE THE SERVICE LT COL GALCHUK HAS BEEN TRANSFORMED INTO A PIONEER OF CAPITALISM THERE ARE A LOT OF PARADOXES THESE DAYS SAYS THE 47YEAROLD OFFICER SWATTING A MOSQUITO AWAY FROM HIS FACE BUT ONE WAY OR THE OTHER WE ALL HAVE TO LIVE THE STATE GAVE LT COL GALCHUK PROPERTY IT HAD PRIED AWAY FROM OLD FARMSTEAD A VAST STATE FARM IN VLADIMIR OLD HABITS DIE HARD THE FARM WAS SUPPOSED TO HAVE GONE PRIVATE BUT REMAINS COLLECTIVELY RUN FORCED TO GIVE UP ACREAGE THE FARM HANDED OVER SOME OF ITS WORST AND LEAST ACCESSIBLE PROPERTY THERE IS DECENT LAND IN THIS AREA BUT I DON'T THINK I GOT ANY OF IT SAYS THE ONETIME CITY BOY FROM UKRAINE WHO HADN'T DONE A LICK OF FARM WORK BEFORE THIS YEAR OF COURSE IF I WERE A STATE FARM DIRECTOR I WOULDN'T GIVE AWAY MY BEST LAND EITHER BUT JUST GETTING ACREAGE ISN'T ENOUGH TO MAKE A GO OF IT A RURAL UNION PROVIDED A STARTUP CREDIT AT JUST 8 ANNUAL INTEREST BUT THE LOAN WAS ONLY ENOUGH TO BUY A SECONDHAND VAN LT COL GALCHUK POOLS RESOURCES WITH NINE OTHER FLEDGLING FARMERS BUT WITH THE DEBT THEY HAVE TAKEN ON THEY ALREADY OWE A BIG CHUNK OF THE COMING HARVEST STILL LT COL GALCHUK HAS BIG PLANS AS HE CONTINUES ALONG THE DIRT ROAD HE POINTS TO A SHADY SPOT OVERLOOKING A MEANDERING CREEK THIS IS WHERE I'LL BUILD MY HOUSE HE BEAMS ASKED WHERE THE MONEY WILL COME FROM A NEW HOUSE IS A 30000 PROJECT HE JUST SHRUGS AND CONTINUES HIS WALK I'D GUESS THAT ABOUT HALF OF US WILL MAKE IT LT COL GALCHUK SAYS A LOT DEPENDS ON HOW WE GET ALONG WITH THE LOCAL VILLAGERS WE NEED THEIR HELP MANY LOCALS HE SAYS FEAR THAT THE SOLDIERFARMERS ARE THE FIRST WAVE OF A NEW CLASS OF KULAKS TSARIST FARMERS NOTORIOUS FOR THEIR TIGHTFISTED TREATMENT OF PEASANTS WHO WILL FORCE THE VILLAGERS INTO SERFDOM AS LT COL GALCHUK APPROACHES HIS FIELD HIS JAW DROPS IN HORROR FOR SEVERAL DAYS IT APPEARS LOCALS HAVE BEEN USING HIS FIELD AS A SHORTCUT TIRE TRACKS HAVE EATEN UP ABOUT A TENTH OF THE ACREAGE ONE WEEK AGO THIS FIELD WAS PLOWED LT COL GALCHUK SAYS NOW IT'S USELESS THESE PEOPLE ARE UNCIVILIZED THE URGENCY OF GETTING NEW BLOOD TO THE COUNTRYSIDE IS CLEAR DURING A DRIVE THROUGH RURAL SMOLENSK RIDING ALONG THE MAIN HIGHWAY VLADIMIR KRAYEV A FORMER AIRBORNE COMMANDER POINTS TO AN ABANDONED FARM HOUSE SURROUNDED BY ACRES OF OVERGROWN LAND BOTH COMMON SIGHTS HERE THE COUNTRYSIDE IS DYING HE SAYS MOST OF THE PEOPLE LIVING HERE ARE PENSIONERS AND THE YOUNG ONES JUST DRINK ALL DAY THANKS TO COLLECTIVISM GEN KRAYEV SAYS THE RICHEST COUNTRY IN THE WORLD HAS THE POOREST PEOPLE THE INERTIA SEEMS CHRONIC AT THE BUDNITSKY COLLECTIVE DAIRY FARM THE FARM'S DIRECTOR NIKOLAI FYODOROV IS A PLEASANT OVERWEIGHT MAN WHO MAINTAINS A BAS RELIEF OF LENIN ON THE WALL ABOVE HIS DESK HE DOESN'T BELIEVE MUCH IN CHANGE COLLECTIVE FARMING IS STILL THE BEST WAY MR FYODOROV 39 TELLS GEN KRAYEV YOU MILITARY GUYS ARE TAKING A BIG RISK THE GENERAL WHO HAS BECOME A BORNAGAIN CHAMPION OF PRIVATE PROPERTY IS INCENSED HE DEMANDS TO KNOW HOW MANY COWS THE FARM MAINTAINS ON ITS SPRAWLING 30000 ACRES THE DIRECTOR HEMS AND HAWS AND THEN ADMITS SHEEPISHLY THAT IT ONLY HAS 700 THE GENERAL WHO BELIEVES THE FARM CAN SUPPORT HUNDREDS MORE LAUGHS DERISIVELY VASSILY BYKOV MANAGED TO CARVE OFF A PORTION OF THE BUDNITSKY COLLECTIVE'S LAND HE CAME A YEAR AGO EXPECTING THAT PRIVATE FARMING COULD REJUVENATE HIS LIFE THE MILITARY IN A POSTCOLD WAR RETRENCHMENT PHASE HAD MADE IT CLEAR HE WASN'T WANTED FOR 12 MONTHS HE HAS LED A PRIMITIVE AND UNDIGNIFIED EXISTENCE HE SLEEPS ON HAYSTACKS OR IN A MAKESHIFT TENT THERE IS NO WATER THE RED TAPE TO GAIN TITLE TO HIS LAND 18 SIGNATURES FROM THE BUREAUCRACY WAS NIGHTMARISH WORST OF ALL HE HASN'T MONEY FOR MACHINERY OR FERTILIZER BUT HE IS FAR FROM GIVING UP I'VE GOT NO PLACE LEFT TO RUN SAYS LT COL BYKOV A STRAIGHTLACED TANKBATTALION LEADER WHO GAVE 29 YEARS TO THE ARMY ON THE OTHER HAND HE SAYS IT WOULD BE NICE TO GET MORE HELP FROM THE STATE WHICH LURED HIM IN THE FIRST PLACE A PAIR OF COLLEAGUES NOD IN AGREEMENT AS THE GRUMBLING BEGINS GEN KRAYEV AN INFLUENTIAL LOCAL FIGURE WHO HELPED BRING THE SOLDIERS HERE CUTS IN THE STATE IS BUILDING A NEW ROAD FOR YOU HE REMINDS THEM THE MEN TURN AND FEEBLY SAY THANK YOU THEN THEY RETURN TO THEIR GRIPES THIS IS HIGHRISK FARMING SAYS LT COL BYKOV WE GOT THE LAND THAT HAD BEEN ABANDONED AS UNFARMABLE YEARS AGO HE PICKS UP A SAMPLE THE SOIL TRAILS AWAY LIKE SAND BUT THIS IS MY LAND HE SAYS SOUNDING DETERMINED TO MAKE IT ALL WORK I CARE ABOUT EVERY LITTLE ROOT IN THE GROUND THE LOCALS HE SAYS JUST CARE ABOUT THEIR BOOZE IT WOULD BE A LOT EASIER JUST WATCHING TV AND DRAWING A PENSION LT COL GALCHUK SAYS BUT SOMEONE HAS TO REVIVE RUSSIA 9308160018 930816 HEARD ON THE STREET SEMITECH STOCK OFFERING IS GIVING BUYERS NOVEL WAY TO INVEST FUNDS IN THE FAR EAST BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO WITH VISIONS OF MILLIONS OF ASIAN CONSUMERS DANCING IN THEIR HEADS NORTH AMERICAN INVESTORS HAVE POURED BILLIONS OF DOLLARS INTO STOCKS THEY EXPECT TO PROFIT FROM A CONSUMER SPENDING BONANZA IN THE FAR EAST HERE'S AN OFFBEAT WAY TO PLAY THAT INTEREST INTERNATIONAL SEMITECH MICROELECTRONICS AN OBSCURE TORONTOBASED HOLDING COMPANY THAT MANY ANALYSTS AND INVESTORS BELIEVE HAS BEEN OVERLOOKED IN THE RUSH ALTHOUGH SEMITECH REMAINS LITTLEKNOWN ITS MAIN INVESTMENT IS A HOUSEHOLD NAME A SIZABLE HOLDING IN SINGER CO NV THE FAMED MAKER OF SEWING MACHINES AND DON'T TRY TO TELL SEMITECH MANAGERS THAT THERE'S NO FUTURE IN SEWING MACHINES SINCE THEY ACQUIRED SINGER IN 1989 THEY HAVE NEARLY DOUBLED ITS REVENUE AND PROFIT WHILE EXPANDING INTO NEW MARKETS AND INTRODUCING INTO ITS DISTRIBUTION NETWORK NEW PRODUCTS RANGING FROM JUICE MACHINES TO MICROWAVE OVENS THE MARKET ALREADY HAS RECOGNIZED MUCH OF SINGER'S GROWTH SINCE ITS SHARES WERE LISTED ON THE NEW YORK STOCK EXCHANGE IN MID1991 SINGER HAS RISEN TO 35 1/4 FROM THE ISSUE PRICE OF 14 BUT NOW SEMITECH ITSELF IS COMING TO MARKET WITH A 750 MILLIONCANADIANDOLLAR US572 MILLION ISSUE OF SHARES THE LARGEST NONUTILITY STOCK ISSUE EVER DONE IN CANADA IT'S EMERGING AS A CHEAP WAY TO PLAY NOT ONLY SINGER'S GROWTH STORY BUT THE POSSIBILITY THAT SEMITECH'S MANAGEMENT CAN REPEAT THEIR SUCCESS WITH THEIR MOST RECENT CONSUMER PRODUCTS INVESTMENTS WHICH INCLUDE A 46 STAKE IN JAPAN'S SANSUI ELECTRIC CO LTD THE SEMITECH ISSUE WHICH IS BEING MARKETED THROUGHOUT NORTH AMERICA EUROPE AND ASIA IS EXPECTED TO BE PRICED TODAY OR TOMORROW THANKS TO MARKET JITTERS ABOUT THE SHEER SIZE OF THE OFFERING THE STOCK IS LIKELY TO BE ATTRACTIVELY PRICED AT LESS THAN C19 A SHARE SEMITECH'S 52WEEK HIGH WAS C2425 AND THE STOCK CHANGED HANDS AT ABOUT C22 JUST BEFORE THE STOCK SALE WAS ANNOUNCED THE SYMBOL FOR THE COMPANY'S A SHARES TRADING IN TORONTO IS ISEA THE ICING ON THE CAKE IS THE INSTALLMENT RECEIPT PLAN UNDER WHICH INVESTORS WILL HAVE TO PAY ONLY 40 OF THE PURCHASE PRICE UP FRONT WITH THE REMAINDER DUE IN TWO INSTALLMENTS OVER THE NEXT TWO YEARS WITH SEMITECH PLANNING TO BEGIN PAYMENT OF AN ANNUAL DIVIDEND RATE OF C40 CENTS A SHARE AFTER THE ISSUE THAT TRANSLATES INTO A FIRSTYEAR EFFECTIVE YIELD OF ABOUT 5 IF YOU COUNT ONLY THE THE FIRST INTALLMENT PAYMENT OF AROUND C760 RATHER THAN THE FULL SHARE PRICE BUT THE KEY TO THE INTEREST BEING SHOWN IN THIS STOCK DOESN'T LIE JUST IN THE ATTRACTIVE PRICING BUT IN THE GROWTH POTENTIAL THESE PROSAIC' BUSINESSES ARE GROWING AT 12 TO 15 ANNUALLY SAYS GARY ALLEN PARTNER IN CHARGE OF EQUITIES AT INVESTMENT FIRM CANAGEX ASSOCIATES WHAT'S MORE THIS ISN'T A STORY ABOUT EARNINGS GROWTH IT'S ABOUT ASSETVALUE GROWTH AND STOCK APPRECIATION SAYS BRUCE CAMPBELL A PARTNER IN CORPORATE INVESTMENTS ASSOCIATES RT TORONTO WE'RE REALLY BUYING SINGER CHEAP AND GETTING A LOT OF OTHER VERY IDENTIFIABLE ASSETS FOR FREE THE SEMITECH OFFERING IS EXPECTED TO BE OVERSUBSCRIBED PROCEEDS WILL ALLOW SEMITECH TO ACQUIRE THE 51 OF SINGER NOW HELD BY A 42OWNED HONG KONG SUBSIDIARY SEMITECH GLOBAL GLOBAL THEN WILL USE THE US848 MILLION FOR NEW ACQUISITIONS FURTHER INVESTMENTS AND A SPECIAL DIVIDEND SINGER IS A GREAT WAY TO PLAY CONSUMER SPENDING IN THE DEVELOPING WORLD WHERE SINGER'S NAME RECOGNITION IS SECOND ONLY TO COCACOLA SAYS MARK HASSENBERG VICE PRESIDENT OF DONALDSON LUFKIN & JENRETTE HE THINKS SINGER'S STOCK COULD HIT 45 WITHIN 12 MONTHS MORE THAN HALF SINGER'S REVENUE COMES FROM ASIA AND LATIN AMERICA SO WHY SHOULDN'T INVESTORS JUST BUY SINGER BECAUSE SEMITECH IS CHEAPER OTHERS SAY BUYING SEMITECH AT C19 GIVES AN INVESTOR 51 OF A SINGER SHARE WORTH AROUND US1791 OR C2364 SEMITECH CLOSED FRIDAY IN TORONTO AT C1850 UNCHANGED SEMITECH'S FOUNDER AND CHIEF EXECUTIVE OFFICER JAMES TING WINS HIGH MARKS FROM ANALYSTS AND INVESTORS HE TURNED SINGER AROUND AND HAD THE VISION TO SEE THAT THE SEWING MACHINE BUSINESS COULD BE A PROFITABLE ONE MR HASSENBERG SAYS SEMITECH GLOBAL OWNS THE SANSUI STAKE AS WELL AS 72 OF GERMAN SEWING MACHINE MAKER GM PFAFF AG MR TING TOLD ROAD SHOW AUDIENCES ABOUT CUTTING PFAFF'S WORK FORCE IN HALF AND TAKING OTHER COSTCUTTING MEASURES INCLUDING SHIFTING SOME PRODUCTION TO ASIA NOT EVERYONE IS A FAN SOME STILL DON'T UNDERSTAND THE REASON FOR SEMI TECH GLOBAL'S EXISTENCE MR TING HAS USED THE UNIT TO RAISE CASH FOR VENTURES WHEN FEW NORTH AMERICANS SHOWED INTEREST HE HIMSELF CALLS IT A HOSPITAL FOR RECOVERING INVESTMENTS AND AN ACQUISITION VEHICLE THERE'S ALSO A 300 MILLION SINGERGUARANTEED SEMITECH DEBT ISSUE PENDING TO HELP FINANCE THE PURCHASE OF THE SINGER STAKE FROM GLOBAL STANDARD & POOR'S HAS PUT SINGER'S DEBT ON ITS CREDITWATCH LIST RATES THE PLANNED SEMITECH ISSUE SINGLEBPLUS AND IS WATCHING TO SEE HOW GLOBAL WILL INVEST 9308160017 930813 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9308160015 930816 WHO'S NEWS INTERNATIONAL BUSINESS MACHINES CORP INTERNATIONAL BUSINESS MACHINES CORP ARMONK NY ABRAHAM PELED RESEARCH VICE PRESIDENT SYSTEMS AND SOFTWARE OF IBM IS LEAVING THE COMPANY TO BECOME SENIOR VICE PRESIDENT OF ELRON ELECTRONIC INDUSTRIES A HIGHTECH HOLDING COMPANY THAT INVESTS IN EMERGING TECHNOLOGIES AND IS BASED IN ISRAEL MR PELED 47 YEARS OLD JOINED IBM IN 1974 AND ROSE TO MANAGE SUCH IMPORTANT PROJECTS AS HELPING IBM MOVE ITS RISC SYSTEM WHICH STANDS FOR REDUCED INSTRUCTION SET COMPUTER OUT OF THE LABORATORIES AND INTO THE MARKETPLACE IN 1986 MORE RECENTLY HE HEADED UP A SPECIAL GROUP IN IBM THAT DEVELOPED THE HARDWARE FOR POWER VISUALIZATION A SUPERCOMPUTER TECHNOLOGY THAT TAKES MASSES OF DATA AND TURNS THEM INTO HIGHQUALITY IMAGES MR PELED SAID HE WAS LEAVING TO BE NEAR HIS FAMILY IN ISRAEL 9308160014 930816 BUSINESS BRIEF RELIANCE GROUP FILES PLAN TO REFINANCE MOST OF ITS DEBT IN ONGOING OVERHAUL NEW YORK SAUL STEINBERG'S RELIANCE GROUP HOLDINGS INC FILED A A THREEPART PLAN WITH THE SECURITIES AND EXCHANGE COMMISSION TO REFINANCE MOST OF ITS NEARLY 1 BILLION IN DEBT OUTSTANDING AS PART OF THE COMPANY'S ONGOING RESTRUCTURING TAKING ADVANTAGE OF LOW INTEREST RATES AS WELL AS THE RISING STOCK MARKET RELIANCE PROPOSED TO SELL 25 MILLION COMMON SHARES WORTH ABOUT 184 MILLION AT CURRENT PRICES AS WELL AS 300 MILLION IN SENIOR NOTES AND 350 MILLION IN SENIOR SUBORDINATED DEBENTURES AND RELIANCE IS NEGOTIATING A NEW CREDIT LINE OF AS MUCH AS 300 MILLION RELIANCE SAID THE TOTAL OFFERING WOULD PERMIT IT TO REFINANCE NEARLY 1 BILLION IN DEBT ANALYST WALTER FITZGERALD OF RAS SECURITIES SAID THE COMPANY BY TAKING ADVANTAGE OF LOW INTEREST RATES WILL CUT INTEREST PAYMENTS ABOUT 30 MILLION ON AN ANNUALIZED BASIS OR ABOUT 15 CENTS TO 20 CENTS A SHARE IN 1992 RELIANCE HAD 1076 MILLION IN INTEREST EXPENSES THE EQUITY OFFERING WOULD REDUCE THE STEINBERG FAMILY'S CONTROLLING STAKE IN RELIANCE TO 495 FROM 639 RELIANCE SAID THE OFFERING MAY QUIET CONTINUING CRITICISM OF THE STEINBERG FAMILY'S HEFTY SALARIES AND USE OF COMPANY MONEY FOR PERSONAL LOANS THE COMPANY HOPES THE OFFERING WILL CHANGE THE WRONGFUL PERCEPTION OF THE COMPANY THAT SOME INVESTORS HOLD SAID RELIANCE'S CHIEF FINANCIAL OFFICER LOWELL FREIBERG WHO ADDED THAT THE COMPANY PLANS TO HAVE A MAJORITY OF OUTSIDE DIRECTORS ON ITS BOARD BY THE 1994 SHAREHOLDERS MEETING THE COMPANY PLANS TO SELL 20 MILLION SHARES IN THE US AND CANADA AND FIVE MILLION ON INTERNATIONAL MARKETS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE EQUITY OFFERING WOULD INCREASE THE COMPANY'S SHARES OUTSTANDING BY 28 FROM ITS CURRENT 893 MILLION RELIANCE COMMON STOCK CLOSED FRIDAY AT 7375 OFF 125 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AN INSURANCE HOLDING COMPANY RELIANCE HAD 1992 REVENUE OF 276 BILLION BUT POSTED A NET LOSS OF 357 MILLION MAINLY BECAUSE OF A 100 MILLION LOSS ON THE SALE OF THE COMPANY'S LIFE INSURANCE UNIT RELIANCE'S UNITS INCLUDE RELIANCE GROUP INC RELIANCE FINANCIAL SERVICES CORP AND RELIANCE INSURANCE GROUP THE REFINANCING IS RELIANCE'S LATEST MOVE TO STREAMLINE IN THE PAST YEAR IT HAS SHED SEVERAL INSURANCE BUSINESSES ACQUIRED DURING THE 1980S IT SOLD ITS LIFE INSURANCE UNIT INSURANCE BROKERAGE AND MORTGAGE INSURANCE BUSINESSES FOR A TOTAL OF MORE THAN 112 BILLION 9308160013 930816 NOTABLE & QUOTABLE HISTORIAN GERTRUDE HIMMELFARB WRITING IN THE SUMMER NATIONAL INTEREST DURING THE SECOND WORLD WAR GEORGE ORWELL OBSERVED THAT ONLY IN ENGLAND WERE INTELLECTUALS ASHAMED OF THEIR OWN NATIONALITY TODAY THAT MIGHT BE SAID OF INTELLECTUALS IN ALL THE LIBERAL DEMOCRACIES WHO DEMYSTIFY AND DENIGRATE THEIR OWN NATIONALITIES AS EUROCENTRIC XENOPHOBIC EVEN RACIST WHILE AT THE SAME TIME GIVING LEGITIMACY TO NATIONALITIES IN THE THIRD WORLD AND ELSEWHERE WHICH ARE NOTABLY ILLIBERAL INHUMANE AND NOT INFREQUENTLY RACIST 9308160012 930816 THOSE OTHER SPENDTHRIFTS THE STATES BY DAVID L LITTMANN AMERICA'S GOVERNORS CONVENED THEIR ANNUAL CONFERENCE THIS WEEKEND IN THE SHADOW OF ONE OF THE BIGGEST FEDERAL TAX INCREASES IN HISTORY BUT WHEN IT COMES TO TAXES THE STATES AREN'T FAR BEHIND IN FISCAL 1991 STATE AND LOCAL GOVERNMENTS ACROSS AMERICA INCREASED TAXES BY 103 BILLION COMPOUNDING TAXPAYER BURDENS FROM FEDERAL TAX HIKES ENACTED IN 1990 AND 1991 STATES AGAIN RAISED TAXES BY 15 BILLION IN 1992 AND ARE EXPECTED TO RAISE TAXES AN ADDITIONAL 7 BILLION BETWEEN NOW AND FISCAL 1994 IN VIEW OF THE PRESIDENT'S TAXHEAVY DEFICIT REDUCTION PLAN IT IS INSTRUCTIVE TO NOTE THAT INCREASED STATE GOVERNMENT PAYROLLS GENERALLY ACCOMPANIED THESE STATE TAX HIKES IN SHORT WHEN TAXES GO UP GOVERNMENTS EXPAND AT THE STATE AS WELL AS THE FEDERAL LEVEL BETWEEN JANUARY 1988 AND MAY 1993 EMPLOYMENT GAINS IN THE PUBLIC SECTOR FAR OUTPACED THOSE IN THE PRIVATE SECTOR OVER THAT FIVEYEAR INTERVAL PRIVATESECTOR NONAGRICULTURAL PAYROLL EMPLOYMENT ROSE 322 COMPARED WITH A TOTAL PUBLIC SECTOR EMPLOYMENT GAIN OF 951 OR NEARLY TRIPLE THE PRIVATESECTOR PERFORMANCE DURING THE SAME PERIOD WASHINGTON CHOPPED DEFENSE SPENDING AND PERSONNEL LEADING TO AN AVERAGE CONTRACTION OF 61000 FEDERAL EMPLOYEES THIS MEANS THAT THE GOVERNMENT EMPLOYMENT GROWTH THAT DID OCCUR WAS EVEN MORE A STATE AND LOCAL PHENOMENON STATE AND LOCAL GOVERNMENT EMPLOYMENT ROSE 12 NOT SURPRISINGLY STATE AND LOCAL BUDGET DEFICITS EXPANDED WITH SUCH STAFF INCREASES TO 45 BILLION FROM 18 BILLION AGAIN A NEAR TRIPLING HIGHER TAXES ENACTED OVER THIS PERIOD EVIDENTLY DID LITTLE TO STANCH THE RED INK BUT SOME STATES DID BETTER THAN OTHERS STATES IN THE MOUNTAIN AND PLAINS REGIONS EXHIBITED MORE VIGOROUS RATES OF PRIVATE JOB CREATION RELATIVE TO GOVERNMENT EMPLOYMENT STATES LIKE MONTANA THE DAKOTAS UTAH AND ALASKA HAD PRIVATE EMPLOYMENT GAINS EQUAL TO OR HALF AGAIN AS MUCH AS PUBLIC SECTOR GAINS BUT OF ALL 50 STATES AND THE DISTRICT OF COLUMBIA ONLY EIGHT STATES SHOWED PRIVATESECTOR EMPLOYMENT GROWING FASTER THAN PUBLICSECTOR JOBS IN THE 198893 PERIOD THESE STATES TENDED TO HAVE RELATIVELY STRONG FISCAL POSITIONS HIGH BALANCES RESERVES OR RAINY DAY FUNDS MEASURED AS A PERCENTAGE OF TOTAL STATE GOVERNMENT SPENDING ON THE OTHER HAND NEW ENGLAND AND THE MIDATLANTIC STATES GENERALLY RANKED IN THE POOREST QUINTILE IN BOTH PRIVATETOPUBLIC JOB CREATION AND FISCAL CONDITION ELSEWHERE STATES WITH ABOVEAVERAGE DEFENSE INDUSTRY ECONOMIES LIKE TEXAS FLORIDA VIRGINIA AND CALIFORNIA SUFFERED FISCAL DIFFICULTIES IN TANDEM WITH RAPID GROWTH IN STATE GOVERNMENT STAFFING IT WOULD APPEAR THAT STATES THAT ARE MOST SCRUPULOUS IN RESTRICTING GROWTH OF THEIR GOVERNMENT WORK FORCE TO FAVOR JOBS GROWTH IN THE PRIVATE SECTOR WILL ALSO ENJOY BETTER FISCAL HEALTH MR LITTMANN IS VICE PRESIDENT OF COMERICA BANK IN DETROIT 9308160011 930816 GLOBAL VIEW CULTURES IN CONFLICT ON THE GLOBAL BATTLEFIELD BY GEORGE MELLOAN BRUSSELS WHAT DO THE WORLD TRADE CENTER BOMBING ISRAEL'S RECENT AIR STRIKES AT THE HEZBOLLAH IN SOUTHERN LEBANON THE WAR IN BOSNIA OPPRESSION AND STARVATION IN SOUTHERN SUDAN THE WAR OVER NAGORNOKARABAKH THE WAR ON THE TADJIKAFGHAN BORDER THE FIGHTING IN KASHMIR AND THE TURKISH STRUGGLE AGAINST PKK TERRORISTS ALL HAVE IN COMMON ONE OBVIOUS LINKAGE IS THAT ALL HAVE CONTRIBUTED HEAVILY TO THE DAILY DIET OF VIOLENCE AND SUFFERING FED INTO HOMES ALL AROUND THE GLOBE BY PRESS AND TELEVISION BUT THEY ARE RELATED IN ANOTHER WAY AT LEAST IN THE VIEW OF EMINENT POLITICAL SCIENTIST SAMUEL P HUNTINGTON HE SEES SUCH EVENTS AS EPISODES IN WHAT HE CALLS THE CLASH OF CIVILIZATIONS IN THE SUMMER EDITION OF FOREIGN AFFAIRS A QUARTERLY PUBLISHED BY THE NEW YORK COUNCIL ON FOREIGN RELATIONS MR HUNTINGTON ASSERTS THAT SUCH COLLISIONS WILL BE CENTRAL TO GLOBAL POLITICS IN THE POSTCOLD WAR ERA IT IS MY HYPOTHESIS THAT THE FUNDAMENTAL SOURCE OF CONFLICT IN THIS NEW WORLD WILL NOT BE PRIMARILY IDEOLOGICAL OR PRIMARILY ECONOMIC HE WRITES THE GREAT DIVISIONS AMONG HUMANKIND AND THE DOMINATING SOURCE OF CONFLICT WILL BE CULTURAL ETHNIC CLEANSING IN BOSNIA IS BUT ONE MANIFESTATION OF CULTURAL WARS ARISING OUT OF DIFFERENCES IN RACE LANGUAGE OR RELIGION IT IS AN INTRIGUING IDEA IN THE COLD WAR THE US AND THE SOVIET UNION WERE SAID TO BE DIVIDED BY IDEOLOGY THE FIGHTS THE SUPERPOWERS SPONSORED OR PARTICIPATED IN IN VIETNAM ANGOLA CENTRAL AMERICA AND ELSEWHERE WERE OVER WHETHER THE IDEA OF DEMOCRACY OR THE IDEA OF COMMUNISM WOULD PREVAIL COMMUNISM LOST THE NEW STRUGGLES WILL BE MORE DIVERSIFIED GIVEN THE INTERACTIONS AMONG SEVEN OR EIGHT MAJOR CIVILIZATIONS PROFESSOR HUNTINGTON LISTS THESE AS WESTERN CONFUCIAN JAPANESE ISLAMIC HINDU SLAVICORTHODOX LATIN AMERICAN AND POSSIBLY AFRICAN AS THE WORLD TRADE CENTER EXPLOSION SUGGESTS THE VIOLENCE WILL STRIKE INTO THE HEART OF RICH AND POWERFUL NATIONS AS WELL AS POOR ONES IT CAN BE ARGUED THAT MR HUNTINGTON MERELY IS GIVING A NEW INTELLECTUAL GLOSS TO SOMETHING QUITE OLD CULTURAL SUSPICIONS HAVE USUALLY BEEN HIGH ON THE LIST OF MOTIVES FOR COMMITTING MAYHEM JESUS OF NAZARETH TOLD HIS DISCIPLES TO EXPECT WARS AND RUMORS OF WARS AN ACKNOWLEDGMENT OF REALITY THEN AND NOW CULTURAL IDEOLOGICAL AND ECONOMIC MOTIVES ARE NOT EASY TO SEPARATE EVEN THE US CIVIL WAR HAD ALL THREE IF YOU INCLUDE THE CULTURAL DIFFERENCES BETWEEN THE PLANTATION SOUTH AND THE INDUSTRIAL NORTH HOW WOULD YOU BREAK DOWN THE DRIVING FORCES OF THE WORLD WAR II PACIFIC WAR BETWEEN JAPAN AND THE WEST THE SOVIET UNION'S CONQUESTS AND ATTEMPTED CONQUESTS ALWAYS HAD AN ELEMENT OF RUSSIAN CULTURAL IMPERIALISM THE HUNTINGTON THESIS WILL BE DEBATED IN THE NEXT ISSUE OF FOREIGN AFFAIRS BY AMONG OTHERS WALL STREET JOURNAL EDITOR ROBERT L BARTLEY WHO DOES NOT THINK WESTERN CIVILIZATION IS QUITE YET READY FOR THE GRAVEYARD BUT FOR THE NONCE LET US DWELL ON THE HUNTINGTON ARGUMENT THAT MODERN MOBILITY AND COMMUNICATIONS CUTTING ACROSS NATIONAL BOUNDARIES ARE FACTORS IN BRINGING CULTURES INTO CONFLICT THERE MAY BE SOMETHING TO IT PROPAGATION OF RELIGIOUS BELIEF IS TAKING SOME TROUBLING DIRECTIONS THE RADICAL ISLAM OF IRAN'S AYATOLLAH KHOMEINI HAS PENETRATED INTO THE HUGE AFRICAN NATION SUDAN FOR EXAMPLE BRINGING WITH IT FURTHER BLOODSHED DISEASE AND MASS STARVATION FOR BLACK CHRISTIANS AND ANIMISTS OF THE COUNTRY'S SOUTH ENCOURAGED BY IRAN HASSAN TURABI THE CHARISMATIC ISLAMIC SCHOLAR WHO EMERGED AS A POWER IN KHARTOUM OUT OF THE NATIONAL SALVATION REVOLUTION FOUR YEARS AGO IS BELIEVED TO BE SECRETLY BACKING KHOMEINISTYLE REVOLUTION IN EGYPT ALGERIA AND ANYWHERE ELSE HE CAN GET A FOOTHOLD HIS WHITECLAD CADRES ROMP ABOUT YELLING HOLY WAR SLOGANS ONE OF THE FAVORITES OF WHICH IS DEATH TO AMERICA IT IS NO ACCIDENT THAT FIVE OF THE SEVEN PERSONS ARRESTED IN THE NEW YORK BOMBING PLOTS WERE FROM SUDAN THE IRANIAN INFLUENCE RADIATES AS WELL INTO LEBANON WHERE THE BEKAA VALLEY HAS BECOME THE WORLD CAPITAL OF TERRORISM NOT TO MENTION DRUGS NOT ONLY DOES THE IRANIANBACKED HEZBOLLAH OPERATE FROM THERE MAINLY TO CONDUCT ASSAULTS AGAINST ISRAEL BUT SO DOES THE PKK WHICH IS RUNNING A TERRORIST OFFENSIVE AGAINST TURKEY SYRIA TOLERATES BOTH THE TWO ARE DIFFERENT HOWEVER HEZBOLLAH IS A HOLY WAR MOVEMENT AS ARE INDEED SOME OTHER VIRULENT ANTIISRAELI ORGANIZATIONS SUCH AS HAMAS WHICH OPERATES INSIDE THE ISRAELICONTROLLED GAZA STRIP AND WEST BANK BUT THE PKK WITH ITS KURDISH CULTURAL IDENTITY IS MARXISTLENINIST AND IS OPPOSED BY A GREAT MANY KURDS AS WELL AS TURKS HERE AGAIN THE LINES BETWEEN IDEOLOGY AND CULTURE ARE BLURRED EGYPT'S HOSNI MUBARAK ARGUES THAT ONLY A TINY MINORITY OF MUSLIMS ARE FANATICS ONLY A FEW ARE INSPIRED TO PLANT BOMBS THAT KILL INNOCENT BYSTANDERS TERRORISM HAS SEVERE LIMITATIONS AS A POLITICAL TOOL EVEN IRAN'S FANATICS ULTIMATELY HAD TO YIELD TO MORE PRAGMATIC LEADERSHIP ALTHOUGH PRESIDENT RAFSANJANI HAS NOT FELT MOVED TO CURTAIL THE FOREIGN ADVENTURES OF RELIGIOUS RADICALS HIS PRAGMATISM PERHAPS TELLS HIM THAT CREATING A BIT OF FEAR IS NOT WITHOUT ITS USES IN GLOBAL POLITICS ECONOMIC MOTIVES AS A SOURCE OF WAR SHOULD NEVER BE TOO HEAVILY DISCOUNTED WARS OF AGGRESSION OFTEN HAVE BEEN CALLED ORGANIZED THEFT AN APT DESCRIPTION MEN HAVE FOUGHT MANY BATTLES FOR NO HIGHER GOAL THAN BOOTY WHILE THE WAR IN THE FORMER YUGOSLAVIA MAY BE PRIMARILY A CLASH OF CULTURES ITS ECONOMIC CONSEQUENCES ARE NOT INCIDENTAL IF YOU PURGE A REGION OF ITS PEOPLE THEIR HOUSES AND FARMS WILL CERTAINLY BE AVAILABLE TO THE WINNING SIDE THE BATTLES MAY BE SEEN AS CULTURAL BUT NEVER FORGET THAT OLD HUMAN FAILING GREED WITH ALL THESE RESERVATIONS ABOUT THE HUNTINGTON THESIS IT SHOULD BE SAID THAT SOME OF ITS ARGUMENTS ARE COMPELLING ONE OF THE MOST INTERESTING FEATURES OF THE CULTURAL CLASH IS THAT IT SPILLS OVER INTO UNLIKELY PLACES IN THIS AGE OF MOBILITY ON STREET CORNERS ALL OVER EUROPE TODAY TRADITIONAL EUROPEANS SHOW THEMSELVES TO BE INCREASINGLY WARY OF THE MUSLIMS IN THEIR MIDST GOVERNMENTS ARE GEARING UP TO STOP AND MAYBE REVERSE THE INFLOW GROUPS OF IDLE YOUNG ARAB MEN AS FAMILIAR A SIGHT IN PARIS AS IN CAIRO ARE POTENTIAL RECRUITS FOR THE FIREBRANDS WHO ENVISION ISLAMIC CONQUESTS CULTURES DO INDEED CLASH POSSIBLY WHAT WE CALL WESTERN CIVILIZATION SHOULD BE PREPARED FOR MORE CONFLICTS DRIVEN BY NOTHING MORE THAN A DEEP SENSE OF DIFFERENCE AND THE THIRST OF AMBITIOUS LEADERS FOR A UNIFYING THEME THAT'S WHAT SAM HUNTINGTON THINKS AT LEAST 9308160010 930816 ENVIRONMENT AFTER THE FLOOD BY SCOTT MCMURRAY ENVIRONMENTALISTS WITH THE BACKING OF STATE AND FEDERAL WILDLIFE EXPERTS PREPARE FOR A BATTLE WITH THE US ARMY CORPS OF ENGINEERS OVER CONTROL OF THE UPPER MISSISSIPPI RIVER UNLIKE PAST DEBATES OVER SPOTTED OWLS OR SNAIL DARTERS ENVIRONMENTALISTS ARGUE THAT THE BOTTOM LINE IS ON THEIR SIDE WHEN IT COMES TO MANAGING THE BIG MUDDY THE IZAAK WALTON LEAGUE SAYS DAMAGE CAUSED BY THE GREAT FLOOD OF '93 UNDERMINES THE CORPS' POLICY OF GIVING COMMERCIAL NAVIGATION TOP PRIORITY ON THE MISSISSIPPI NORTH OF ST LOUIS IZAAK WALTON AND OTHER NATURALIST GROUPS ARE CALLING FOR A NATIONAL ACADEMY OF SCIENCES STUDY THAT WOULD LOOK AT CONTROLLING THE RIVER'S LEVEL THROUGH GREATER MANAGEMENT OF WATERSHEDS AND USE OF WETLANDS NOT JUST THROUGH LEVEES LOCKS AND DAMS PAUL HANSEN DIRECTOR OF IZAAK WALTON'S MIDWEST OFFICE SAYS THE NAS STUDY SHOULD BE FUNDED WITH 44 MILLION IN FEDERAL MONEY ALREADY ALLOCATED TO THE CORPS FOR STUDYING THE EXPANSION OF EXISTING LOCKS AND DAMS TO EASE BARGE BOTTLENECKS THAT'S CHICKEN FEED COMPARED WITH THE 48 BILLION PRICE TAG FOR THE CORPS' PLANNED EXPANSION OF LOCKS AND DAMS IN THE NEXT 50 YEARS MR HANSEN SAYS WE BELIEVE THAT THE MISSISSIPPI RIVER IS BEING SERIOUSLY MISMANAGED BY THE US ARMY CORPS OF ENGINEERS AND THAT AN INDEPENDENT REVIEW OF THE RIVER'S MANAGEMENT IS ESSENTIAL BEFORE MASSIVE EXPENDITURES ARE MADE MR HANSEN SAYS PUTTING WETLANDS AND WATERSHEDS ON AN EVEN KEEL WITH NAVIGATION WOULDN'T BE A BUDGET BUSTER WATERSHED MANAGEMENT FOR CHESAPEAKE BAY COSTS ABOUT 20 MILLION A YEAR MR HANSEN SAYS MOREOVER THE CORPS' FOCUS ON NAVIGATION REPRESENTS A TAXPAYER SUBSIDY THAT BENEFITS RELATIVELY FEW ENVIRONMENTALISTS AND OTHERS CLAIM A STUDY ISSUED EARLIER THIS YEAR BY THE PUBLIC POLICY CENTER OF THE UNIVERSITY OF IOWA CONCLUDED THAT SHIPPING GRAIN FROM IOWA TO NEW ORLEANS IS ONLY MARGINALLY CHEAPER BY RIVER BARGE THAN BY RAIL THE 80 MILLION OR MORE THAT TAXPAYERS SPEND ANNUALLY ON MAINTAINING RIVER LOCKS AND A NINEFOOT NAVIGATION CHANNEL ON THE UPPER MISSISSIPPI MAINLY BENEFITS FARMERS LIVING WITHIN JUST 100 MILES OF THE RIVER THE STUDY CONCLUDED THE CORPS SAYS THE OVERALL ECONOMIC BENEFITS OF ITS EXPANSION WOULD EXCEED THE COSTS MOREOVER THE CORPS HAS BEEN BALANCING NAVIGATION INTERESTS WITH ENVIRONMENTAL INTERESTS FOR THE PAST 15 TO 20 YEARS SAYS SPOKESMAN COL MIGUEL MONTEVERDE STATE AND FEDERAL BIOLOGISTS ARE SCRATCHING THEIR HEADS OVER PRELIMINARY ESTIMATES THAT SHOW BALD EAGLE REPRODUCTION PLUNGED ABOUT 15 IN THE SPRING AND SUMMER ALONG THE UPPER MISSISSIPPI EVEN THOUGH NEST BUILDING INCREASED ERIC NELSON A BIOLOGIST WITH THE INTERIOR DEPARTMENT'S FISH AND WILDLIFE SERVICE IN WINONA MINN SAID BIOLOGISTS HAVE SPOTTED 44 YOUNG BALD EAGLES THAT HATCHED ALONG THE UPPER MISSISSIPPI THIS SEASON DOWN FROM 52 LAST YEAR THE CONVENTIONAL WISDOM HAD BEEN THAT OFFSPRING WOULD FLOURISH BECAUSE FISH FLOPPING IN FLOODED CORNFIELDS WOULD MAKE EASY PICKINGS FOR EAGLES WHICH NEST HIGH IN TREES AS EXPECTED BIRDS THAT NEST ON THE GROUND OR IN LOW BRANCHES INCLUDING GEESE DUCKS EGRETS AND HERONS SUFFERED A NEARTOTAL LOSS OF OFFSPRING BECAUSE THEIR NESTS WASHED AWAY SAYS LARRY WARGOWSKY FISH AND WILDLIFE MANAGER OF THE SPRING LAKE WILDLIFE REFUGE NEAR SAVANNA ILL BUT WHAT HAPPENED TO THE EAGLES FLOODWATERS DISPLACED FISH POPULATIONS FROM THEIR NORMAL AREAS AND MAY HAVE KEPT THE EAGLES FROM FINDING FOOD WHERE THEY EXPECTED IT TO BE BIOLOGISTS SAY BUT THERE MAY BE A SIMPLER EXPLANATION A NUMBER OF SEVERE WINDSTORMS HIT PORTIONS OF THE UPPER MISSISSIPPI VALLEY DURING BREEDING SEASON AND MAY HAVE CURBED THE BIRDS' ARDOR BIOLOGISTS NOTE EAGLES MATE IN MIDAIR THE MILLIONS OF TONS OF SILT FLOODING DOWN THE MISSISSIPPI ARE FILLING IN BACKWATER MARSHES IN WILDLIFE AREAS AND MAY SHARPLY REDUCE RIVER BIODIVERSITY WETLANDS SUPPORT ROUGHLY 10 TIMES AS MANY PLANT AND ANIMAL SPECIES AS THE WILLOW AND SILVERMAPLE WOODS THAT SPROUT UP WHEN MARSHES GET SILTED IN BACKWATERS ARE THE BREAD AND BUTTER OF THE RIVER ECOSYSTEM SAYS RUSSELL GENT A FISH AND WILDLIFE SERVICE BIOLOGIST FLOODS ARE NATURAL EVENTS OF COURSE BUT THE SILTING IS EXACERBATED BY INTENSIVE FARMING OF SLOPING FIELDS IN ILLINOIS IOWA MINNESOTA AND MISSOURI TRIBUTARIES SUCH AS IOWA'S MAQUOKETA RIVER WHICH DRAINS A PORTION OF HILLY EASTERN IOWA FARMLAND WERE ESPECIALLY SILTLADEN DURING THE FLOOD SAYS ROBERT SHEETS IOWA DEPARTMENT OF NATURAL RESOURCES MANAGER FOR THE GREEN ISLAND WILDLIFE REFUGE DREDGING THE SILT FROM THE REFUGES ISN'T AN OPTION WILDLIFE EXPERTS SAY BECAUSE THAT WOULD DISRUPT THE HABITATS FOR YEARS AFTERWARD THE ONLY SOLUTION IS TO KEEP THE SILT ON THE FIELDS ENVIRONMENTALISTS AND FISH AND WILDLIFE OFFICIALS SAY THAT CAN BE DONE THROUGH GREATER PRACTICE OF EROSIONRESISTANT FARMING METHODS SUCH AS NOTILL FARMING ENVIRONMENTAL OFFICIALS ARE KEEPING A NERVOUS EYE ON HAZARDOUSWASTE SITES INUNDATED BY THE FLOOD TWELVE FEET OF WATER SURROUNDS A SAUGET ILL RIVERSIDE DUMP THAT CONTAINS TOXIC WASTES FROM A NEARBY MONSANTO PLANT LAPPING AGAINST THE CLAY CAP COVERING THE DUMP SO FAR THE 22ACRE DUMP'S CAP IS HOLDING SAYS MARY GADE DIRECTOR OF THE ILLINOIS ENVIRONMENTAL PROTECTION AGENCY MINNESOTA'S LOWTECH SOLUTION TO PURIFYING FLOODCONTAMINATED WELLS IS TO POUR CHLORINE BLEACH DOWN THEM ALLOW IT TO SIT OVERNIGHT AND THEN LET TAPS RUN UNTIL THE BLEACH SMELL DISAPPEARS IF COLIFORM BACTERIA IS STILL DETECTED USING STATESUPPLIED KITS IT'S TIME TO DRILL A NEW WELL 9308160009 930816 INTERNATIONAL SOUTH KOREA'S REUNIFICATION MINISTER USES SOFT APPROACH IRKS CONSERVATIVES BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA FOR A MEASURE OF HOW FAR THE KOREAN DEBATE OVER REUNIFICATION HAS EVOLVED CONSIDER HAN WAN SANG SOUTH KOREA'S DEPUTY PRIME MINISTER AND MINISTER FOR NATIONAL REUNIFICATION MR HAN IS A FORMER CAMPUS RADICAL AND DISSIDENT ACCUSED UNFAIRLY SAY HIS COLLEAGUES OF BEING A LACKEY TO NORTH KOREA'S MARXIST REGIME HE IS FIERCELY DISTRUSTED BY SOUTH KOREA'S CONSERVATIVES EVEN SOME OFFICIALS FROM THE UNIFICATION MINISTRY MR HAN HEADS THINK THEIR BOSS TAKES A TOOBENIGN VIEW OF PYONGYANG YET MR HAN'S ODYSSEY FROM ACADEMIC TO POLICY MAKER TRACKS KOREA'S OWN POLITICAL MATURATION HE WAS TAPPED BY PRESIDENT KIM YOUNG SAM HIMSELF A FORMER DISSIDENT AND KOREA'S FIRST CIVILIAN PRESIDENT SINCE 1948 SIGNALING A BREAK WITH THE SOUTH KOREA'S MILITARYDIRECTED PAST MR KIM LEAVENED HIS CABINET WITH EXGENERALS TECHNOCRATS POLITICAL INSIDERS AND NOTED ACADEMICS WHO REPRESENTED KOREA'S POLITICAL SPECTRUM ON THE LEFT END OF THE SPECTRUM IS MR HAN LIKE MR KIM THE DEPUTY PRIME MINISTER WAS PERSECUTED BY KOREA'S AUTOCRATIC REGIMES HE WAS EXPELLED AS A PROFESSOR FROM SEOUL NATIONAL UNIVERSITY A DECADE AGO FOR JOINING STUDENT PROTESTS HE IS ALSO INCREASINGLY ISOLATED LAST WEEK NORTH KOREA REJECTED A PROPOSAL FROM SEOUL FOR THE FIRST DIRECT TALKS BETWEEN THE TWO GOVERNMENTS SINCE JANUARY THE GESTURE WAS ONE IN A SERIES OF SIMILAR OFFERS FROM SOUTH KOREA EXTENDED SINCE MAY PART OF A SOFTLINE POLICY CHARTED IN PART BY MR HAN BUT IT HAS FAILED TO BEAR FRUIT AND OFFICIALS FROM THE MORE HAWKISH FOREIGN MINISTRY SUGGESTED THEY WERE SHIFTING THEIR POSTURE TOWARD PYONGYANG FROM CONCILIATION TO CONFRONTATION THIS ISN'T THE FIRST TIME MR HAN HAS OFFERED A CARROT TO THE NORTH KOREANS ONLY TO GET SKEWERED WITH IT LAST MARCH IN A MOVE THAT ENRAGED CONSERVATIVES HE DECIDED TO REPATRIATE LI IN MO AN AILING NORTH KOREAN GUERRILLA OFFICER HELD CAPTIVE BY THE SOUTH SINCE THE COUNTRY'S CIVIL WAR IN THE EARLY 1950S A DAY AFTER MR LI WAS CARTED ACROSS THE DEMILITARIZED ZONE IN A WHEELCHAIR PYONGYANG ANNOUNCED IT WAS WITHDRAWING FROM THE INTERNATIONAL NUCLEAR NONPROLIFERATION TREATY WHICH RAISED NEW CONCERNS ABOUT THE NORTH'S SUSPECTED ATOMIC WEAPONS PROGRAM IN AN INTERVIEW MR HAN IS EVERY INCH THE SOFTSPOKEN RUMPLED ACADEMIC IN BETWEEN QUESTIONS HE SIPS GINSENG TEA AND CHEWS GELATIN PILLS TO RELIEVE STRESS TENSION COMES WITH THE JOB EVEN BEFORE NORTH KOREA'S RECENT REJECTION LOCAL EDITORIALS SUGGESTED MR HAN'S CREDIBILITY COULD BE THE FIRST CASUALTY OF THE STANDOFF WITH PYONGYANG THERE'S A HUGE GROUP OF PEOPLE IN THIS COUNTRY WITH A CONSERVATIVE COLD WAR VIEW HE SAYS THEY'RE TRYING TO UTILIZE THE NORTH KOREAN POSITION AND PORTRAY ME AS AN IDEALIST OR RADICAL YET MR HAN HAS DONE LITTLE TO CLOSE THE GULF BETWEEN HIS STRATEGIES AND THOSE OF JUST ABOUT EVERYONE ELSE ENGAGED IN THE CONFRONTATION JUST BEFORE MARCH 12 WHEN NORTH KOREA WAS COURTING THREATS OF INTERNATIONAL SANCTIONS BY REFUSING INTERNATIONAL INSPECTION OF ITS NUCLEAR PLANTS MR HAN WANTED TO SEND A BUSINESSPROMOTION DELEGATION TO NORTH KOREA THE US STATE DEPARTMENT INTERVENED THEY TOLD US THE MINISTRY'S DECISIONMAKERS HAVE TO FOLLOW THE INTERNATIONAL COMMUNITY SAYS ONE OF MR HAN'S SUBORDINATES IT WAS AN AWKWARD SITUATION THE US AND ITS ALLIES ARE TALKING ABOUT SANCTIONS AND HERE'S THE UNIFICATION MINISTER TALKING ABOUT COOPERATION SINCE THEN MR HAN HAS STRESSED HE SUPPORTS ECONOMIC AID ONLY IF NORTH KOREA SOFTENS ITS STANCE YET HE STILL SEEMS OUT OF STEP WITH POLICY MAKERS AROUND HIM LAST WEDNESDAY EVEN AS FOREIGN MINISTRY OFFICIALS APPEARED TO BE DISCARDING THE CARROT FOR THE STICK THERE WAS MR HAN TELLING A JAPANESE NEWSPAPER THE GOVERNMENT WAS CONSIDERING A NEW PROPOSAL FOR A DIALOGUE INTERNATIONAL INSPECTORS WOULD SOON BE ALLOWED INTO NORTH KOREA HE FORECAST AND AN ECONOMIC DELEGATION WOULD VISIT PYONGYANG SHORTLY THEREAFTER TECHNICALLY THE MINISTER UNDERSTANDS WE NEED A TOUGH STANCE SAYS AN AIDE TO MR HAN BUT HIS BASIC APPROACH AND PHILOSOPHY ARE UNCHANGED MR HAN EQUIVOCATES WHEN IT COMES TO SANCTIONS AGAINST PYONGYANG HE WOULDN'T OPPOSE SANCTIONS AS A LAST RESORT HE SAYS BUT HE WOULD DISCOURAGE ANYTHING THAT WOULD ISOLATE THE PYONGYANG REGIME WE SHOULD GUARANTEE THEM SAFEGUARDS FOR THEIR SYSTEM HE SAYS THEY'RE UNPREDICTABLE YOU HAVE TO SEE THAT IRRATIONALITY IN A RATIONAL WAY OTHERWISE YOU'LL MAKE A LOT OF MISTAKES YOU CAN'T BACK THEM INTO A CORNER INSTEAD MR HAN ADVOCATES A REUNIFICATION PLAN DESIGNED TO EASE THE PAIN OF INTEGRATION BY BUILDING UP THE NORTH'S ECONOMY EVEN SOME OF MR HAN'S ALLIES WORRY THAT THE MINISTER'S SOFT APPROACH COULD SEND NORTH KOREA THE WRONG MESSAGE SAYS KIM DONG GILL AN ACADEMICTURNED LEGISLATOR AND FORMER DISSIDENT ARE THE NORTH KOREAN LEADERS GOOD PEOPLE I DON'T THINK SO WE'VE TRIED TO ESTABLISH A DIALOGUE AND GOT NOTHING YET MR HAN'S APPRAISAL OF NORTH KOREA MIGHTN'T BE SO DIFFERENT FROM THE POPULAR PERCEPTION IN A RECENT POLL COMMISSIONED BY THE RESEARCH INSTITUTE FOR NATIONAL UNIFICATION A UNIFICATION MINISTRY THINKTANK NEARLY 80 OF RESPONDENTS SAID THEY BELIEVE NORTH KOREA ISN'T A RIVAL OR A HOSTILE ENTITY AND THAT SOUTH KOREA SHOULD PROMOTE COOPERATION WITH PYONGYANG AND ON SUNDAY 55000 SOUTH KOREANS JOINED HANDS IN A 30MILELONG HUMAN CHAIN SYMBOLIZING REUNIFICATION WITH THE NORTH MR HAN'S POSITION IS SECURE FOR NOW NOT LEAST BECAUSE HE HAS THE SUPPORT OF THE POPULAR MR KIM THE PRESIDENT'S CREDIBILITY AND CONFIDENCE ARE THE MOST VALUABLE RESOURCE I HAVE SAYS MR HAN WE HAVE BEEN FIGHTING TOGETHER IN DEFENSE OF HUMAN RIGHTS FOR YEARS IT IS MEANINGFUL TO IMPLEMENT INSIDE GOVERNMENT THE IDEAS WE CONCEIVED WHEN WE WERE ON THE OUTSIDE 9308160008 930816 BUSINESS BRIEF QSOUND LABS INC NASDAQ DROPS FIRM'S STOCK FROM THE SMALLCAP MARKET QSOUND LABS INC CALGARY ALBERTA SAID ITS COMMON SHARES WERE WITHDRAWN FROM THE NASDAQ SMALLCAP MARKET AFTER NASDAQ DENIED THE COMPANY'S REQUEST FOR AN EXCEPTION TO CERTAIN FINANCIAL REQUIREMENTS BUT THE AUDIOTECHNOLOGY COMPANY WHICH RECENTLY CHANGED ITS NAME FROM ARCHER COMMUNICATIONS INC SAID IT EXPECTS NASDAQ TO RELIST THE SHARES BY MIDWEEK QSOUND SAID JAPANESE LENDER CAPCOM CO AND A CAPCOM SUBSIDIARY INTEND TO CONVERT 35 MILLION CANADIAN DOLLARS US27 MILLION OF QSOUND DEBT INTO 23 MILLION QSOUND SHARES WHICH WOULD SATISFY NASDAQ'S LISTING REQUIREMENTS QSOUND HAS ABOUT 127 MILLION SHARES OUTSTANDING 9308160007 930816 MICROLOG TO REPORT NET IN ITS 3RD PERIOD COMPARED WITH LOSS SPECIAL TO THE WALL STREET JOURNAL GERMANTOWN MD MICROLOG CORP SAID IT WILL REPORT EARNINGS OF THREE CENTS TO SEVEN CENTS A SHARE FOR ITS FISCAL THIRD QUARTER COMPARED WITH A LOSS A YEAR EARLIER THE COMPANY PLANS TO REPORT RESULTS FOR THE QUARTER ENDED JULY 31 THIS WEEK IN THE YEAREARLIER PERIOD THE COMPANY POSTED A LOSS OF 3 MILLION OR 77 CENTS A SHARE AFTER A RESTRUCTURING CHARGE OF 13 MILLION MICROLOG'S PRESIDENT AND CHIEF OPERATING OFFICER RICHARD THOMPSON SAID IN AN INTERVIEW THAT THE CHARGE WAS RELATED TO A 20 WORK FORCE REDUCTION AND THE CONSOLIDATION OF EAST AND WEST COAST SALES FORCES AT MICROLOG'S MARYLAND HEADQUARTERS MR THOMPSON SAID THE DISRUPTION CAUSED BY THE RESTRUCTURING EFFORT WAS LARGELY RESPONSIBLE FOR THE 63 DECLINE IN MICROLOG'S REVENUE DURING THE FIRST HALF OF FISCAL 1993 COMPARED WITH THE YEAREARLIER FIRST HALF ALONG WITH THE DELAYED OR LATE RECEIPT OF SOME LARGE ORDERS UNTIL A MONTH AGO WE EFFECTIVELY HAD NO MARKETING ORGANIZATION BECAUSE ALL OF THE INDIVIDUALS IN THAT GROUP EITHER WERE ASKED TO LEAVE OR DECIDED TO LEAVE FOR PERSONAL REASONS MR THOMPSON SAID THE COMPANY IS IN THE PROCESS OF REBUILDING ITS SALES AND MARKETING ORGANIZATION HE SAID AND HAS JUST HIRED A NEW SENIOR VICE PRESIDENT FOR SALES SEPARATELY STEVEN R DELMAR CHIEF FINANCIAL OFFICER SAID THE COMPANY IS IN THE FINAL STAGES OF COMPLETING A LARGER NEW LINE OF CREDIT WITH ITS BANK AND IS REFINANCING THE MORTGAGE ON ITS HEADQUARTERS BUILDING ALL ON TERMS MUCH MORE FAVORABLE THAN WE HAD IN THE PAST HE SAID THE COMPANY EXPECTS TO ANNOUNCE DETAILS OF ITS NEW FINANCIAL AGREEMENTS THIS MONTH 9308160006 930816 LETTERS TO THE EDITOR INSULT TO MEMORY OF HENRY HAZLITT WHEN OUR LEADING BUSINESS NEWSPAPER FINDS IT NECESSARY TO INCLUDE THE OBITUARY OF THE PREMIER FREE MARKET ECONOMIST IN THE SAME COLUMN WITH A TOTALLY UNRELATED ITEM BUSINESS WORLD JULY 13 WE MAY HAVE A CLUE AS TO THE SAD STATE OF THE US ECONOMY HENRY HAZLITT SHOULD HAVE HAD A SUPPLEMENTAL INSERT DEVOTED TO HIS MONUMENTAL ACHIEVEMENTS A SHARED COLUMN IS AN INSULT TO HIS MEMORY I CAN ONLY MARVEL AT THE NAIVETE OF MR FERGUSON DOES HE REALLY BELIEVE THAT COLLECTIVISM IN THE US TODAY IS LESS THAN IN THE EARLY L950S VOLUMES OF RULES REGULATIONS AND BUSINESS RESTRICTIONS HAVE BEEN LAID UPON THOSE OF US WHO WISH TO CONDUCT BUSINESS DEBT IN EVERY FACET OF OUR SOCIETY HAS GROWN TO LEVELS UNIMAGINABLE IN THE '50S GRANTED THANKS TO HAZLITT AND OTHERS SUCH AS MISES THERE ARE MORE PEOPLE WHO UNDERSTAND FREE MARKET ECONOMICS THAN EVER BEFORE BUT THOSE IN GOVERNMENT SEATS OF POWER AND HOLDERS OF NEARLY EVERY UNIVERSITY ECONOMICS CHAIR ARE ALMOST ALL OF THE MARXIAN PERSUASION EVEN IN BUSINESS PEOPLE SUCH AS THE UNNAMED GM EXECUTIVE QUOTED IN YOUR RECENT ARTICLE ON DODGE TRUCKS SEEM TO LACK ELEMENTAL ECONOMIC UNDERSTANDING THE MARKET FOR FULLSIZED PICKUPS A GM SPOKESMAN SAYS IS ONE THAT HASN'T BEEN CLUTTERED WITH A LOT OF COMPETITION' THIS IS PURE MARXISM IF COMPETITION DOES NOT CONTROL THE MARKET WHO WILL THE GOVERNMENT OF COURSE 9308160005 930816 CORRECTIONS & AMPLIFICATIONS CHIRON CORP WILL RECEIVE 30 OF NET US SALES OF SCHERING AG'S BETASERON UNDER AN AGREEMENT FOR CHIRON TO MANUFACTURE THE DRUG THE SHARE OF SALES WAS MISSTATED AS 15 IN FRIDAY'S HEARD ON THE STREET COLUMN THE US TAX BURDEN OF FOREIGNCONTROLLED COMPANIES AS A PERCENTAGE OF ASSETS NET WORTH AND RECEIPTS IS SIMILAR TO THE US TAX BURDEN OF THEIR USCONTROLLED COUNTERPARTS ACCORDING TO A STUDY BY KPMG PEAT MARWICK THE CONCLUSION WAS MISSTATED IN AN ARTICLE FRIDAY 9308160004 930816 YOUR MONEY MATTERS SMALL FIRMS TURN RETIREMENT PLANS INTO OWNERS' GAIN BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL IS IT A RETIREMENT PLAN OR A TAX SHELTER AT A GROWING NUMBER OF SMALL COMPANIES IT CAN BE HARD TO TELL THE DIFFERENCE MORE AND MORE SMALL BUSINESS OWNERS INCLUDING DOCTORS DENTISTS ACCOUNTANTS AND LAWYERS ARE DISCOVERING LUSH LOOPHOLES THAT LET THEM TURN RETIREMENT PLANS INTENDED FOR ALL EMPLOYEES INTO TAX SHELTERS THAT BENEFIT MOSTLY THE OWNER OR A HANDFUL OF HIGHLY PAID PEOPLE AT THE TOP THE NEW DEVICES CALLED AGEWEIGHTED AND CROSSTESTED PLANS ENABLE OWNERS TO KEEP AS MUCH AS 95 OF THE ANNUAL CONTRIBUTIONS TO THE PLAN TO EXCLUDE LOWERPAID EMPLOYEES AND TO REDUCE THE TOTAL ANNUAL CONTRIBUTIONS THEY MAKE TO THE PLAN ON BEHALF OF RANKANDFILE WORKERS EMPLOYERS CAN DO THIS BY BLENDING RULES USED IN RETIREMENT SAVINGS PLANS WITH RULES USED IN PENSION PLANS WHEN THE RESULTING FORMULA IS COMBINED WITH REGULATIONS MEANT TO PREVENT RETIREMENT PLANS FROM DISCRIMINATING IN FAVOR OF THE HIGHLY PAID THE RESULT IS A LEGAL WAY TO DISCRIMINATE IN FAVOR OF THE TOPPAID HOW MUCH AN OWNER CAN ACTUALLY KEEP DEPENDS ON HOW MUCH GOES INTO THE PLAN THE NUMBER OF EMPLOYEES THEIR AGE AND SALARIES THEY'RE TAXPLANNING DEVICES IS HOW DAVID WRAY PRESIDENT OF THE PROFIT SHARING COUNCIL OF AMERICA IN CHICAGO CHARACTERIZES THEM BASICALLY THEY'RE PUT IN BECAUSE ONE PERSON WANT TO DEFER AS MUCH SALARY AS POSSIBLE HE ADDS FURTHER THE NEW TAX LAW WILL CAUSE THESE PLANS TO SPREAD LIKE BRUSH FIRE PENSION EXPERTS PREDICT BEFORE THE TAX LAW CHANGED IT WAS A GOOD DEAL NOW IT'S A BETTER DEAL FOR OWNERS SAYS MARCY SUPOVITZ VICE PRESIDENT OF RETIREMENT PLANS FOR PIONEER MUTUAL FUNDS IN BOSTON THE PLANS MAKE IT POSSIBLE FOR EMPLOYERS TO ESCAPE RESTRICTIONS IN THE NEW TAX LAW ON CONTRIBUTIONS TO TOPPAID EMPLOYEES THE NEW LAW EFFECTIVELY LIMITS THE ANNUAL CONTRIBUTION AN EMPLOYER CAN MAKE FOR A PERSON IN A TRADITIONAL PROFITSHARING PLAN OR SEP SIMPLIFIED EMPLOYEE PLAN TO NO MORE THAN 22500 15 OF THE TOTAL ELIGIBLE COMPENSATION OF 150000 BUT WITH THESE NEW TYPES OF PLANS THE AMOUNT THAT CAN BE DISTRIBUTED TO AN INDIVIDUAL REMAINS 25 OF PAY UP TO 30000 ALREADY THESE NEW MUTANT SPECIES OF RETIREMENT PLANS ARE GROWING LIKE KUDZU VINES AND STRANGLING MILDER EXISTING COMPETITORS SUCH AS TRADITIONAL PROFITSHARING PLANS 401K PLANS AND SEPS OVER THE PAST TWO YEARS THOUSANDS OF EMPLOYERS HAVE CONVERTED THEIR RETIREMENT PLANS TO AGEWEIGHTED AND CROSSTESTED PROFITSHARING PLANS THE PLANS HAVE BEEN GIVEN THEIR BIGGEST PUSH BY LIFE INSURANCE COMPANIES WHICH ADMINISTER THEM FOR A FEE AND SELL INVESTMENTS TO THE PLANS THEY OVERSEE AT NATIONAL LIFE OF VERMONT AGEWEIGHTED PLANS COMPRISE 25 OF ALL PROFITSHARING PLANS THEY ADMINISTER AT BERKSHIRE LIFE INSURANCE CO AGEWEIGHTED PLANS ACCOUNT FOR MOST OF ITS NEW RETIREMENT PLAN BUSINESS SOME MUTUAL FUND COMPANIES THAT HAVE RETIREMENTPLAN DIVISIONS ARE ALSO MOVING QUICKLY INTO THIS MARKET INCLUDING OPPENHEIMER & CO DREYFUS SERVICE CORP AND PIONEER MUTUAL FUNDS THERE'S A LOT OF ROOM FOR GROWTH ACCORDING TO THE DEPARTMENT OF LABOR 88 OF BUSINESSES IN THE US TODAY EMPLOY 20 OR FEWER EMPLOYEES AND THOSE BUSINESSES ARE TYPICALLY OWNED BY PEOPLE WHO ARE OLDER AND BETTER PAID THAN THEIR EMPLOYEES CRITICS SAY THAT THE NEW PLANS PERVERT THE SOCIAL POLICY GOALS OF RETIREMENT PLANS WHICH ARE GIVEN TAX BREAKS BECAUSE THEY ARE INTENDED TO HELP LOWER AND MIDDLEINCOME AMERICANS PUT MONEY ASIDE FOR RETIREMENT FURTHER SOME PEOPLE NOTE THAT THE PLANS GIVE EMPLOYERS AN INCENTIVE TO DISCRIMINATE AGAINST OLDER WORKERS IT MAKES HIRING AN OLDER PERSON MORE EXPENSIVE SAYS HARRY CONAWAY A PRINCIPAL AT THE WASHINGTON OFFICE OF WILLIAM M MERCER INC A BENEFITSCONSULTING CONCERN BUT MANY PENSION EXPERTS SAY THE NEW PLANS FILL A NEED FOR EMPLOYERS THESE ARE PEOPLE WHO HAVE POURED THEIR PROFITS BACK IN THEIR BUSINESSES AND DON'T HAVE THAT MANY YEARS UNTIL RETIREMENT SAYS MS SUPOVITZ YOUNGER EMPLOYEES WOULD RATHER HAVE MORE TAKEHOME PAY RATHER THAN RETIREMENT SAVINGS AGEWEIGHTED PLANS WERE MADE POSSIBLE BY AN INTERNAL REVENUE SERVICE RULING 401A4 THAT WENT INTO EFFECT TWO YEARS AGO ESSENTIALLY IT SAID THAT RETIREMENT SAVINGS PLANS OFFERED BY EMPLOYERS COULD USE FORMULAS SIMILAR TO THOSE PENSION PLANS USE WHEN DETERMINING HOW MUCH MONEY TO ALLOCATE FOR EMPLOYEES PENSION FORMULAS GIVE OLDER WORKERS THE LION'S SHARE OF THE CONTRIBUTIONS AN EMPLOYER MAKES TO A PLAN THE REASONING IS THAT THEY HAVE FEWER YEARS UNTIL RETIREMENT SO A DOLLAR GIVEN TO THEM IS WORTH LESS THAN A DOLLAR GIVEN TO A YOUNGER PERSON ABOUT A YEAR AGO THE PENSION COMMUNITY REALIZED IT COULD ALSO USE CROSSTESTING RULES TO PROVIDE EVEN MORE ADVANTAGE TO TOPPAID EMPLOYEES CROSSTESTING FORMULAS WERE DESIGNED TO PREVENT RETIREMENT PLANS FROM DISCRIMINATING IN FAVOR OF THE OLDER HIGHERPAID WORKERS THE RULES BASICALLY REQUIRE THE ADMINISTRATOR TO DIVIDE EMPLOYEES INTO HIGHLY PAID AND LOWERPAID GROUPS AND MAKE SURE THAT THE HIGHERPAID GROUP DOESN'T GET A SIGNIFICANTLY HIGHER PERCENTAGE WHEN THESE PROVISIONS ARE COMBINED WITH AGEWEIGHTING FORMULAS THE OWNER CAN KEEP MOST OF THE MONEY FROM A THEORETICAL PERSPECTIVE THE PLANS ARE NONDISCRIMINATORY SAYS MR CONAWAY IF YOU CONVERT THE DOLLAR AMOUNT THAT LOWERPAID PEOPLE GET TO AGE65 DOLLARS THE BENEFIT IS THE SAME PERCENTAGE OF PAY BUT AS HELPFUL AS THE NEW PLANS MAY BE FOR SMALLBUSINESS OWNERS THEY HAVE SERIOUS DRAWBACKS FOR RANKANDFILE WORKERS TO BEGIN WITH THE PLANS CAN EXCLUDE ALTOGETHER SOME LOWERPAID EMPLOYEES AS LONG AS 70 OF THE LOWERPAID EMPLOYEES ARE ELIGIBLE TO PARTICIPATE IN THE PLAN EVEN THOSE WHO PARTICIPATE MAY NEVER SEE A DIME OF RETIREMENT MONEY HOWEVER BECAUSE THESE PLANS HAVE VESTING SCHEDULES LASTING AS LONG AS SIX YEARS SINCE YOUNGER LOWERPAID EMPLOYEES TYPICALLY HAVE HIGH TURNOVER MANY AREN'T LIKELY TO QUALIFY TO RECEIVE THEIR PROFITSHARING MONEY FORFEITED CONTRIBUTION ARE REALLOCATED TO THE REMAINING PEOPLE IN THE PLANS ON AN ANNUAL BASIS THE BOTTOM LINE IS A LARGE PORTION OF THOSE CONTRIBUTIONS NEVER GO TO THOSE EMPLOYEES AT ALL BECAUSE OF THE FORFEITURES SAY MS SUPOVITZ BUSINESS OWNERS CAN REPLACE EXISTING RETIREMENT PLANS WITH ONES THAT PROVIDE THEM WITH A GREATER PERCENTAGE OF THE MONEY CONTRIBUTED AS THIS ILLUSTRATION FOR A FIVEPERSON PLAN SHOWS THE OWNER GETS 52 OF THE TOTAL CONTRIBUTIONS TO A TRADITIONAL PROFIT SHARING PLAN IN WHICH ALL EMPLOYEES RECEIVED 15 OF THEIR PAY BUT UNDER AGEWEIGHTED AND COMPARABILITY PLANS THE OWNER CAN KEEP AS MUCH AS 85 COMPARABILITY PLANS ALSO LET THE OWNER LOWER THE AMOUNT CONTRIBUTED FOR RANKANDFILE WORKERS IN THIS EXAMPLE SAVING 8026 15 OF THE TOTAL ELIGIBLE COMPENSATION POOL OF 290000 UNDER THE NEW TAX LAW ONLY 150000 OF AN EMPLOYEE'S PAY CAN BE USED WHEN CALCULATING CONTRIBUTIONS TO A PLAN 9308160003 930816 WHAT'S NEWS WORLDWIDE A JURY ACQUITTED ROBERT ALTMAN OF ALL FOUR COUNTS IN THE BCCI FRAUD CASE THE FIRST MAJOR TRIAL GROWING OUT OF THE MASSIVE BANKFRAUD SCANDAL ENDED IN A DEFEAT FOR PROSECUTORS SATURDAY WHEN ALTMAN A WASHINGTON LAWYER WAS ACQUITTED BY A JURY IN NEW YORK DURING THE FIVEMONTH TRIAL PROSECUTORS HAD SAID ALTMAN 46 TOOK BRIBES AND LIED TO REGULATORS ABOUT THE BANK OF CREDIT & COMMERCE INTERNATIONAL'S ROLE IN FIRST AMERICAN BANKSHARES INC ALTMAN AND HIS LAW PARTNER CLARK CLIFFORD WERE INDICTED LAST YEAR BUT CLIFFORD'S TRIAL WAS PUT OFF INDEFINITELY BECAUSE OF HIS ILL HEALTH BOSNIAN SERB FORCES ENDED THEIR OCCUPATION OF STRATEGIC MOUNT IGMAN NEAR SARAJEVO ON SATURDAY CLEARING THE WAY FOR PEACE TALKS TO RESUME TODAY IN GENEVA BETWEEN SERBS CROATS AND MUSLIMS NATO HAD ALREADY DRAWN UP PLANS FOR AIR STRIKES AGAINST SERB POSITIONS IF THEY FAILED TO EASE THEIR SIEGE OF THE BOSNIAN CAPITAL TWENTYONE BOSNIANS ARRIVED IN BRITAIN FOR MEDICAL TREATMENT AND 18 OTHER PATIENTS WERE FLOWN TO SWEDEN THE HEAD OF THE UN EVACUATION TEAM IN SARAJEVO SAID THE MEDICAL AIRLIFTS HAD TURNED INTO A PUBLICRELATIONS SHOW BUT OTHER UN OFFICIALS DEFENDED THE AIRLIFTS POPE JOHN PAUL II DENOUNCED THE CULTURE OF DEATH OF ABORTION AND EUTHANASIA AS HE NEARED AN END TO HIS FOURDAY US VISIT THE POPE SPOKE IN DENVER AFTER A SURPRISE MEETING WITH GORE EARLIER THOUSANDS OF PEOPLE SOUGHT MEDICAL HELP DURING A 14MILE PILGRIMAGE AN OVERNIGHT PRAYER VIGIL AND AN OUTDOOR MASS WITH THE PONTIFF LIBYA'S FOREIGN MINISTRY REJECTED A WESTERN DEADLINE FOR HANDING OVER TWO SUSPECTS IN THE 1988 PAN AM FLIGHT 103 BOMBING OVER SCOTLAND THAT KILLED ALL 259 PEOPLE ABOARD THE US FRANCE AND BRITAIN WARNED ON FRIDAY THAT THE GADHAFI GOVERNMENT WOULD FACE FURTHER SANCTIONS IF IT DIDN'T TURN OVER THE SUSPECTS BY OCT 1 FOR TRIAL JAPAN'S NEW PRIME MINISTER OFFERED CONDOLENCES TO THE FAMILIES OF OTHER NATIONS' WORLD WAR II VICTIMS ON THE 48TH ANNIVERSARY OF THE JAPANESE SURRENDER TO ALLIED FORCES LAST WEEK IN HIS FIRST NEWS CONFERENCE HOSOKAWA DECLARED THAT JAPAN'S ROLE IN THE WAR WAS ONE OF AGGRESSION AND WAS WRONG PALESTINIAN DEPORTEES AGREED TO ACCEPT AN ISRAELI PLAN TO LET THEM RETURN TO ISRAEL FROM SOUTHERN LEBANON IN TWO STAGES ISRAEL OFFERED LAST WEEK TO ALLOW THE RETURN OF 192 OF THE 396 DEPORTEES TO THE OCCUPIED TERRITORIES NEXT MONTH WITH THE REST REPATRIATED IN DECEMBER THE PALESTINIANS DEPORTED DEC 17 HAD SOUGHT TO RETURN TOGETHER A HOTEL COLLAPSED IN A NORTHEASTERN PROVINCIAL CAPITAL OF THAILAND KILLING AT LEAST 100 PEOPLE AND INJURING MORE THAN 270 RELIEF WORKERS WERE DIGGING UNDER THE DEBRIS TO SEARCH FOR SURVIVORS FROM FRIDAY'S ACCIDENT AT THE ROYAL PLAZA HOTEL IN KORAT THE HOTEL'S OWNER AND SEVERAL OTHER PEOPLE WERE CHARGED WITH NEGLIGENCE AN EGYPTIAN MILITARY COURT OPENED THE TRIAL OF 53 MUSLIMS ACCUSED OF BELONGING TO THE ANTIGOVERNMENT GROUP VANGUARDS OF CONQUEST THE TRIAL BEGAN A DAY AFTER A CIVIL COURT ACQUITTED 24 MUSLIMS OF KILLING EGYPT'S PARLIAMENT SPEAKER CITING EVIDENCE THEY WERE TORTURED TO OBTAIN CONFESSIONS GORE URGED GOVERNORS TO JOIN THE ADMINISTRATION IN PRESSURING CONGRESS TO OVERHAUL THE FEDERAL GOVERNMENT WHOSE SYSTEM IS BROKEN AND NEEDS MODERNIZATION THE VICE PRESIDENT ADDRESSED THE NATIONAL GOVERNORS ASSOCIATION IN TULSA OKLA TWO TEENAGERS WERE ARRESTED IN NORTH CAROLINA AND CHARGED WITH THE MURDER OF BASKETBALL STAR MICHAEL JORDAN'S FATHER THE 56YEAROLD VICTIM JAMES JORDAN WAS SHOT AND KILLED MORE THAN THREE WEEKS AGO OFFICIALS SAID APPARENTLY AFTER HE STOPPED HIS CAR TO REST NEAR LUMBERTON NC HIS BODY WAS FOUND IN SOUTH CAROLINA A CHINESE LABOR ACTIVIST SAID HE WAS EXPELLED FROM CHINA ONLY HOURS AFTER RETURNING FROM A MEDICAL STAY IN THE US HAN DONGFANG SAID POLICE TOOK HIM ON SATURDAY FROM A HOTEL IN GUANGZHOU TO THE BORDER WITH HONG KONG WHERE HE WAS FORCED ACROSS AT LEAST THREE OTHER CHINESE ACTIVISTS HAVE BEEN EXPELLED AFTER RETURNING PAUL AZINGER OF THE US WON THE PGA CHAMPIONSHIP GOLF TOURNAMENT IN TOLEDO OHIO AFTER A SUDDENDEATH PLAYOFF WITH GREG NORMAN OF AUSTRALIA 9308160002 930816 WORLD MARKETS SOUTH KOREAN STOCKS TUMBLE BY A RECORD 45 AFTER REFORM LEADER BANS FALSENAME ACCOUNTS BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL SOUTH KOREA'S LATEST FINANCIAL REFORM BURST ON ITS CITIZENS LAST WEEK WITH ALL THE DRAMA OF A MILITARY COUP COMPLETE WITH A LIVE EMERGENCY ADDRESS BY THE PRESIDENT THURSDAY THE TOTAL CLOSURE OF ITS FINANCIAL SYSTEM FRIDAY MORNING AND THE KOREA STOCK EXCHANGE'S BIGGEST ONEDAY LOSS EVER IN JUST TWO HOURS THAT AFTERNOON BY THE WEEK'S END SOUTH KOREANS HEAVED A SIGH OF RELIEF THAT CITIZENS COULD NO LONGER HOLD FINANCIAL ASSETS UNDER FALSE NAMES INDEED THE MOVE WAS SO POPULAR THAT I THINK PRESIDENT KIM YOUNG SAM IS CLOSE TO BEING NOMINATED FOR SAINTHOOD SAID SEAN GOLDRICK CHIEF REPRESENTATIVE FOR JAMES CAPEL & CO IN SEOUL HE DESERVES TREMENDOUS PRAISE ADDED MELISSA BROWN A SENIOR ANALYST AT BARCLAYS DE ZOETE WEDD ASIA LTD SUCH APPLAUSE FROM BROKERAGE ANALYSTS MAY SEEM EXCESSIVE IF ONLY BECAUSE THE SAME ANNOUNCEMENT TRIGGERED THE 45 TUMBLE IN THE KOREAN COMPOSITE STOCK PRICE INDEX ON FRIDAY BUT THE ENTHUSIASM ISN'T MISPLACED THE FALSENAME SYSTEM MARKED AN ERA WHEN THE GOVERNMENT TURNED A BLIND EYE TO DIRTY MONEY AS LONG AS THE MONEY WAS INVESTED NOW MR KIM WANTS TO START SHIFTING CONTROL OF SOUTH KOREA'S FINANCIAL SYSTEM TO THE FREE MARKET ALLOWING HOARDS OF SUSPECT CASH TO STAY STASHED IN FALSENAME ACCOUNTS SEEMED NEITHER EFFICIENT ENOUGH NOR OPEN ENOUGH FOR THAT CHANGE SO AS OF 8 PM THURSDAY A MINUTE OR SO AFTER MR KIM'S TELEVISED SPEECH ENDED ACCOUNTS COULD NO LONGER BE OPENED IN FALSE NAMES INVESTORS NOW HAVE TWO MONTHS TO SHIFT THEIR FUNDS INTO ACCOUNTS BEARING THEIR REAL NAMES OR IF THEY STILL WANT THEIR MONEY HIDDEN SIMPLY TO CASH OUT AND STUFF IT IN A FUTON FOREIGNERS WERE NEVER ALLOWED TO HOLD FALSENAME ACCOUNTS AND SHOULD ULTIMATELY FIND IT EASIER TO TRADE SOUTH KOREAN SHARES IN A MORE EFFICIENT STOCK MARKET BUT ANALYSTS IN SEOUL ARE WARNING THEM TO STEER CLEAR IN COMING DAYS FRIDAY'S TWO HOURS OF TRADING REVEALED JUST HOW MUDDY KOREA'S FINANCIAL WATERS REMAIN AMONG THE 959 ISSUES LISTED ON THE MARKET THE PRICES OF 917 FELL TO THEIR DAILY PERMISSIBLE LOWS AND SAW THEIR TRADING HALTED IT WAS PANIC SAID KIM DONG IK A TRADER AT DAISHIN SECURITIES CO ALTHOUGH PRESIDENT KIM HAD SAID FOR MONTHS THAT HE WOULD END THE FALSENAME SYSTEM AS PART OF HIS ANTICORRUPTION DRIVE CONVENTIONAL WISDOM CALLED FOR THE CHANGE TO COME GRADUALLY AND NOT BE COMPLETED BEFORE THE END OF THE YEAR JUST HOURS BEFORE THE PRESIDENT'S SPEECH GOVERNMENT OFFICIALS GAVE NO HINT OF THE IMPENDING MOVE WHEN ASKED BY MERRILL LYNCH'S CHIEF ASIAN ECONOMIST HOW SOON IT MIGHT OCCUR THE STOCK MARKET PLUNGE ALSO HINTED AT THE AMOUNT OF MONEY AFFECTED BY MR KIM'S NEW RULE ECONOMISTS FIGURE THAT AS MUCH AS 4 OF SOUTH KOREA'S TOTAL DEPOSIT BASE COULD BE HELD UNDER ALIASES MUCH OF IT TAXABLE INCOME BEING HIDDEN BY TAX EVADERS BROKERAGE ANALYSTS THINK THAT ABOUT 5 OF KOREA'S STOCK MARKET CAPITALIZATION IS HELD UNDER FALSE NAMES AND THAT FALSENAME ACCOUNTS MIGHT CONTROL AS MUCH AS 20 OF SOUTH KOREA'S FREE FLOAT OF STOCK OR STOCK THAT IS NOT EFFECTIVELY LOCKED UP BY BENEFICIAL OWNERS FORCING EVEN A FRACTION OF THAT MONEY OUT OF A MARKET WHOSE MAIN INDEX HAD ALREADY SLIPPED MORE THAN 5 IN THE MONTH LEADING TO THE ANNOUNCEMENT IS TRICKY SO STABILIZING SHARE PRICES IS NOW THE KEY TO MAINTAINING SOUTH KOREAN INVESTORS' CONFIDENCE SAID BARCLAYS'S MS BROWN TO DO THAT IN COMING WEEKS THE GOVERNMENT IS KEEPING ITS HANDS ON THE STOCK MARKETS IT ULTIMATELY PLANS TO FREE THE MINISTRY OF FINANCE SAID IT WILL CHECK INSTITUTIONAL INVESTORS DAILY TO MAKE SURE THEY ARE BUYING MORE SHARES THAN THEY SELL IT WILL ALSO BAN ISSUANCE OF MORE SHARES BY LARGE COMPANIES THERE COULD EVEN BE GOOD NEWS FOR FOREIGNERS IN THE STOCK MARKET STABILIZATION SOUTH KOREAN FINANCIAL INSTITUTIONS HAVE BEEN EXHAUSTED BY YEARS OF FORCED BUYING AGAINST A FALLING MARKET SEOUL TRADERS SPECULATED FRIDAY THAT IN AN EFFORT TO RELIEVE THE INSTITUTIONS THE GOVERNMENT MIGHT RAISE THE LIMITS NOW IMPOSED ON FOREIGN SHARE BUYING CURRENTLY FOREIGN INVESTORS CAN HOLD A TOTAL OF ONLY 10 OF A LISTED COMPANY'S SHARES LONDON STOCKS ROSE BY A RAZORTHIN MARGIN ON FRIDAY ERASING EARLY DECLINES IN THE LAST FIVE MINUTES OF TRADING AND SETTING THEIR FIFTH RECORD HIGH IN THE PAST SIX SESSIONS IN TOKYO PRICES EDGED LOWER FRIDAY ON MILD PROFITTAKING AFTER A FOURDAY ADVANCE WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11111 UP 038 REFLECTING HIGHER MARKETS IN THE AMERICAS AND ASIA/PACIFIC AND LOWER EUROPEAN MARKETS POLLUTION STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 7818 UP 174 OR 23 WITH WMX TECHNOLOGIES OF THE US POSTING A 38 GAIN IN ITS LOCAL CURRENCY HEALTHCARE STOCKS TRAILED AT 10626 DOWN 153 OR 14 WITH COMMUNITY PSYCHIATRIC CENTERS OF THE US SLIDING 31 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE INDEX ROSE 1 POINT TO 30101 THE FT30 INDEX FELL 85 TO 23607 VOLUME WAS 7538 MILLION SHARES COMPARED WITH 9082 MILLION THE PREVIOUS DAY BRITISH SHARES HAVE RISEN 196 POINTS SINCE JULY 21 THE VIRTUAL COLLAPSE OF EUROPE'S EXCHANGERATE GRID HAS LED TO EXPECTATIONS OF LOWER INTEREST RATES AND HIGHER CORPORATE EARNINGS IN FRANKFURT STOCKS WERE LITTLE CHANGED THE DAX 30STOCK INDEX OF BLUECHIPS EDGED UP 163 POINTS TO 190658 OTHER EUROPEAN MARKETS WERE MIXED PARIS SHARES SLIPPED AMID CONCERN ABOUT THE OUTLOOK FOR INTEREST RATES AND AMSTERDAM PRICES FELL BROADLY ON PROFITTAKING MARKETS IN MADRID AND ZURICH GAINED SLIGHTLY STOCKHOLM SHARES SET A NEW HIGH FOR 1993 IN HEAVY TRADING LED BY BANK ISSUES THE DOLLAR'S REBOUND FROM AN INTRADAY HISTORIC LOW OF 10180 YEN PROMPTED SOME OF THE FOREIGN INVESTORS WHO SPEARHEADED BUYING THIS WEEK TO LOCK IN SOME OF THEIR GAINS ON CURRENCY AND STOCK MARKETS OTHER ASIA/PACIFIC MARKETS WERE MIXED STOCKS FELL IN SYDNEY KUALA LUMPUR TAIPEI AND WELLINGTON MARKETS IN SINGAPORE HONG KONG AND MANILA POSTED GAINS 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 9308160001 930816 LETTERS TO THE EDITOR A THREAT TO PROSECUTORIAL JUDGMENT BRYAN ABAS HAS MISSED A NUMBER OF CRUCIAL POINTS IN HIS JULY 22 COUNTERPOINT PIECE DEFENDING REP JOHN DINGELL'S INVESTIGATION OF THE JUSTICE DEPARTMENT'S ENVIRONMENTAL CRIMES SECTION AND THE JUSTICE DEPARTMENT'S RESPONSE TO THAT INVESTIGATION SURPRISINGLY REP DINGELL'S LETTER TO THE JOURNAL DEFENDING HIS ACTIONS IGNORES THE SAME ISSUES THE MOST IMPORTANT FACT UNMENTIONED BY BOTH MR ABAS AND MR DINGELL IS THAT A CONGRESSIONAL CROSSEXAMINATION OF LINE PROSECUTORS IS NOT THE WAY TO CHALLENGE DECISIONS CONGRESS OPPOSES OR WANTS TO LEARN MORE ABOUT LINE PROSECUTORS ARE TRADITIONALLY SHIELDED FROM SUCH QUESTIONING PRECISELY SO THAT THEIR JUDGMENT ABOUT WHETHER TO INDICT ONE OF THE MOST AWESOME POWERS THE GOVERNMENT HAS IS NOT COLORED BY WHETHER THEY WILL HAVE TO WITHSTAND A CONGRESSIONAL TONGUELASHING IF THEIR CONCLUSION DISPLEASES SOMEONE ON CAPITOL HILL WHEN CONGRESS IS UNHAPPY ABOUT A PROSECUTORIAL DECISION THE POLITICAL APPOINTEES WHO RUN JUSTICE ARE SUPPOSED TO ANSWER FOR ITS ACTIONS THE EASE WITH WHICH CAREER LAWYERS CAN BE INTIMIDATED BY THE PROSPECT OF A CONGRESSIONAL INVESTIGATION ESPECIALLY ONE THAT PROCEEDS WHILE JUSTICE DOES NOT STAND BEHIND THEM MAKES ANY OTHER COURSE TOO LIKELY TO POLITICIZE LAW ENFORCEMENT POLITICIZATION OF CRIMINAL PROSECUTIONS IS IN FACT A GRAVE DANGER AGAINST WHICH THE CONSTITUTIONAL DOCTRINE OF SEPARATION OF POWERS STANDS GUARD LEGISLATORS ARE ENTITLED TO LEARN WHAT ANIMATED DECISIONS TO INDICT OR NOT SO THEY CAN CHANGE A LAW'S SCOPE IF IT IS BROADER OR NARROWER THAN THEY WANT BUT THEY SHOULD NOT EDUCATE THEMSELVES THROUGH A PROCESS THAT ITSELF THREATENS PROSECUTORIAL JUDGMENT DEFENSE OF THAT JUDGMENT AND OF THE SEPARATION OF POWERS RULES DESIGNED TO PROTECT IT ARE THE JUSTICE DEPARTMENT'S RESPONSIBILITY AND I BELIEVE THE JOURNAL WAS RIGHT TO QUESTION THE DEPARTMENT'S FULFILLMENT OF THAT DUTY THE FACT THAT THE CHALLENGED DECISIONS WERE ALL MADE DURING THE BUSH ADMINISTRATION ONLY MAKES THE DEPARTMENT'S ACTION MORE TROUBLING IS IT NOW THE RULE THAT WHEN THE WHITE HOUSE CHANGES PARTIES THE CAREER PEOPLE WHO WORKED UNDER THE OLD REGIME ARE FAIR GAME FOR CONGRESSIONAL ATTACK WE HAVE A CAREER CIVIL SERVICE PRECISELY TO AVOID RESULTS LIKE THAT A SECOND IMPORTANT ERROR IN MR ABAS'S PIECE IS THAT CONTRARY TO HIS SUGGESTION THERE IS NOT EVEN A SHRED OF EVIDENCE THAT ANY OF THE LINE ATTORNEYS NOW BEING SUMMONED TO TESTIFY HAS COMMITTED ANY CRIMINAL ACT NEVER MIND THE VERY GRAVE CRIMES MR ABAS TOSSES AROUND SO LIGHTLY REP DINGELL HAS BEEN EXAMINING THE DECISIONS THESE PEOPLE MADE FOR MORE THAN A YEAR SO IT'S HARDLY AN EMBRYONIC INVESTIGATION AS MR ABAS CLAIMS AND HAS ALREADY HEARD FROM THE BULK OF THE WITNESSES OTHER THAN THE JUSTICE LAWYERS THEMSELVES IF THERE WERE EVEN A SINGLE PIECE OF EVIDENCE OF CRIMINAL WRONGDOING BE ASSURED WE WOULD KNOW ABOUT IT MR ABAS'S TONGUEINCHEEK SUGGESTION OF A SPECIAL PROSECUTOR IS THEREFORE WHOLLY OUT OF PLACE BUT IT DISPLAYS AN UNFORTUNATELY POPULAR MINDSET WHICH SEEMS TO LIE AT THE BOTTOM OF THE DEPARTMENT'S SURRENDER OF ITS CAREER LAWYERS THE BELIEF THAT THE BEST WAY TO EXAMINE A POLICY DECISION IS IN AN ADVERSARY PROCEEDING LIKE THE CONGRESSIONAL HEARINGS ON THE ROCKY FLATS COLO NUCLEAR PLANT WHERE THE DECISIONMAKER IS PUT IN FEAR OF HIS CAREER IN ITS HEART OF HEARTS THE JUSTICE DEPARTMENT KNOWS BETTER IT HAS COMMISSIONED ITS OWN ANALYSIS OF THE RELEVANT CASES BY RESPECTED NONPARTISAN LAWYERS THAT'S THE WAY TO FIND OUT WHY PROSECUTORIAL DECISIONS WERE MADE NOT BY SENDING CAREER CIVIL SERVANTS TO TAKE THE HEAT ON CAPITOL HILL 9308160033 930708 IMAGINE IF WE LOST THE HORNED LIZARD OR THE CRESTED TOAD ANIMALS WITH SCALES AND SLIME FIND RABID NEW FRIENDS AMONG ENVIRONMENTALISTS BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL ODESSA TEXAS ENOUGH ABOUT PANDAS AND SEAL PUPS SAVE THE HORNED LIZARD RESCUE THE RATTLESNAKE FIND A PLACE IN THE SUN FOR THE DESERT TORTOISE AND A PIECE OF EARTH THICK MUD WILL DO FOR THE CRESTED TOAD THIS IS A MOVEMENT MORE BROWN THAN GREEN MORE FOR LOWDOWN SPECIES LIVING UNDER ROCKS THAN THINGS FURRY AND CUTE SCORES OF CREATURES YOU THOUGHT ONLY NOAH COULD LOVE SOME POISONOUS AND ONE THAT SQUIRTS BLOOD FROM ITS EYES ARE BECOMING THE FOCUS OF UNLIKELY PRESERVATIONIST GROUPS OUT ON A JEEP TRAIL IN AN ABANDONED OIL FIELD WENDY DONALDSON VICE PRESIDENT OF THE 300MEMBER HORNED LIZARD CONSERVATION SOCIETY SEEKS JUST THE RIGHT HABITAT FOR HER FAVORITE ANIMAL NOTHING BUT SAND ANTS AND HEAT PERFECT SAYS THE 24YEAROLD ZOOLOGIST SHE GENTLY LIFTS HER FIVEINCH FRIEND A TRICERATOPS DINOSAUR LOOKALIKE IN MINIATURE FROM A CARDBOARD BOX AND PUTS IT DOWN ON THE BARREN EARTH SET FREE HE DARTS AWAY UNDER A SHRIVELED CACTUS TO SOME SUCH CRITTERS MIGHT SEEM THE LEAST LIKELY ANIMALS FOR RESCUE FROM POSSIBLE EXTINCTION CERTAINLY THEIR HUMAN CHAMPIONS AREN'T CHASERS OF CLASSIC ECOLOGICAL CAUSES I'LL PROBABLY NEVER SEE A RAIN FOREST SAYS TOM DODSON WHO LIVES AT THE EDGE OF THE MOJAVE DESERT IN CALIFORNIA MR DODSON'S MISSION AS A MEMBER OF THE DESERT TORTOISE PRESERVE COMMITTEE IS MOSTLY TO STOP RANCH SHEEP FROM WANDERING TO A NEARBY DESERT REFUGE WHERE SLOWMOVING REPTILES COULD BE TRAMPLED THE PLIGHT OF THE WORLD'S SCALIER VARIETIES ANIMALS THAT DON'T HAVE BIG SAD EYES AND AREN'T MODELS FOR BABIES' BEDTIME TOYS DIDN'T MUCH INTEREST THE ENVIRONMENTAL CROWD UNTIL LATELY SAYS GORDON GALLUP A STATE UNIVERSITY OF NEW YORK PSYCHOLOGIST WHO HAS STUDIED PEOPLE'S ATTITUDES TOWARD ANIMALS I THINK SOME PEOPLE GET TIRED OF SAVING THE SAME OLD WHALES THEY WANT SOMETHING NEW TO FIGHT FOR BOOSTERS OF UNHANDSOME BEASTIES REALIZE THAT THEIR CALL HAS DECIDEDLY LIMITED APPEAL BOB JOHNSON HEAD OF THE 30MEMBER PUERTO RICAN CRESTED TOAD SPECIES SURVIVAL PLAN CONCEDES KEEPING A WARTY TOAD ALIVE IS A THANKLESS TASK BUT DR JOHNSON WHO IS CURATOR OF AMPHIBIANS AND REPTILES AT THE TORONTO ZOO SAYS THERE IS ONLY ONE POND IN PUERTO RICO WHERE HIS PREFERRED TOAD STILL LIVES THUS HE IS SUPERVISING THE BREEDING OF 12000 CRESTED TOAD TADPOLES DESTINED FOR THE ISLAND NONE OF THE WORLD'S OTHER 5000 OR SO TYPES OF TOADS IS A SUBSTITUTE FOR THE PUERTO RICAN CRESTED INSISTS DR JOHNSON THE AVERAGE PERSON MIGHT SAY WELL IT'S JUST ANOTHER TOAD BUT FORTUNATELY THERE ARE A FEW CRESTED TOAD LOVERS WHO APPRECIATE ITS LARGE BONY RIDGES ABOVE THE EYES AND THE UPTURNED SNOUT YET FOUR SPECIES OF RATTLESNAKE THE RIDGENOSED THE BANDEDROCK THE TWINSPOTTED AND THE MASSASAUGA ARE RARE ENOUGH THAT THEY ARE PROTECTED UNDER ARIZONA LAW AND THE VIPER CLIQUE IS OUT TO PERSUADE PEOPLE THAT THE SNAKES HAVE A GOOD SIDE CONSIDER THIS A BIG RATTLER WILL EAT UP TO 500 RATS A YEAR SAYS TOM MARCELLINO PRESIDENT OF THE SOCIETY AND AN AIRLINE RESERVATIONS SUPERVISOR IN TEMPE ARIZ IN HIS TIME OFF MR MARCELLINO VOLUNTARILY RELOCATES 15 TO 30 RATTLERS PER YEAR FROM YARDS AND HOUSES IN THE AREA RATTLESNAKES ARE REALLY SHY AND MUCHMALIGNED HE SAYS TO BE SURE SNAKEBITES ON AVERAGE KILL ABOUT 15 PEOPLE A YEAR IN THE US BUT MR MARCELLINO SAYS DEFENSIVELY MOST OF THOSE PEOPLE ARE TRYING TO KILL THE SNAKE AS FOR HORNED LIZARDS FACETIOUSLY CALLED HORNY TOADS BY MANY TEXANS THEY ARE OCCASIONALLY CAPTURED AS CONVERSATION PIECES THIS IS AFTER ALL THE MONSTER THAT PLAYED OPPOSITE JILL ST JOHN IN IRWIN ALLEN'S 1960 SCIENCEFICTION FILM THE LOST WORLD THE HORNED LIZARD HAS ALMOST DISAPPEARED IN MUCH OF TEXAS DURING THE LAST TWO DECADES AND SCIENTISTS AREN'T SURE WHY SOME PEOPLE LIKE TO SHOW OFF THE FIERCELOOKING BUT HARMLESS REPTILES IN TERRARIUMS BUT BECAUSE THEY NEED A DIET OF 200 ANTS A DAY TO SURVIVE CAPTIVITY BY NEGLECTFUL OWNERS OFTEN PROVES FATAL THE LIZARD'S DWINDLING NUMBERS RECENTLY PROMPTED THE TEXAS PARKS AND WILDLIFE DEPARTMENT TO LIST IT AS AN ENDANGERED SPECIES LAWABIDING CITIZENS ARE SUPPOSED TO SURRENDER THEIR ILLEGAL REPTILES WHICH THEN ARE HANDED OVER TO MS DONALDSON HER CONSERVATION GROUP HAS RETURNED 15 HORNED LIZARDS TO THE WILD DURING THE LAST YEAR WHY ALL THE FUSS IF THE HORNED LIZARD WHICH LIVES ON ANTS ALMOST NO WATER AND MAKES A HOME BY JUST THROWING A LITTLE DIRT ON ITSELF IS DYING OFF WE NEED TO KNOW WHY THE ANSWERS MAY HELP SAVE THE REST OF US SAYS MS DONALDSON SIPPING WATER FROM A CANTEEN SPORTING BLACK JEANS BOOTS TSHIRT AND A SEVERELYSHORT PUNK HAIRCUT SHE PEERS ACROSS THE HOOD OF A DUSTY JEEP AT THE FORBIDDING SPOT WHERE SHE HAS JUST RELEASED THE HORNED LIZARD THIS WEST TEXAS PATCH OF STUNTED THORN AND WEED IS THE NEIGHBORHOOD FROM WHICH HER SPECIMEN WAS PREVIOUSLY TAKEN BY LAWABIDING TOURISTS WHO RETURNED IT TO AUTHORITIES MS DONALDSON MEASURES THE SITE'S AIR AND SOIL FOR ENVIRONMENTAL CLUES THEN SHE SIFTS A HANDFUL OF DIRT AND FINDS A PLEASING SURPRISE A THIMBLESIZED CHIP IT IS A WHIP LIZARD DROPPING A SPEEDY BLACK BREED THE WHIP LIZARD IS BELIEVED TO COMPETE FOR FOOD WITH THE SLOWER HORNED LIZARD DISSECTING THE DUNG PELLET ON THE HOOD OF HER JEEP SHE FINDS PARTICLES OF A GRASSHOPPER'S BODY BUT NO ANT REMAINS GOOD LOOKS LIKE THE WHIP LIZARDS CAN BE HAPPY LEAVING THE ANTS AROUND HERE TO THE HORNED LIZARDS SO LITTLE DID SCIENTISTS KNOW ABOUT THE HORNED LIZARD THAT IT WAS THOUGHT UNTIL RECENTLY TO BE A MYTH THAT THE CREATURE COULD SPRAY A STREAM OF BLOOD FROM ITS EYES AT PREDATORS BUT SOME MONTHS AGO MS DONALDSON'S RESEARCHERS SAW A LIZARD SHOOTING BLOOD HORNED LIZARDS IT SEEMS HAVE EXTRAORDINARY CONTROL OF BLOOD VESSELS AROUND THEIR EYES MOREOVER THEIR BLOOD MAY CONTAIN SPECIAL DEFENSIVE ENZYMES BUT TO DATE RESEARCHERS HAVEN'T BEEN ABLE TO RECREATE THIS DEFENSIVE BEHAVIOR IN THE LAB SUCH INVESTIGATIONS HOWEVER ARE BESIDE THE POINT TO MANY MEMBERS OF THE HORNED LIZARD CONSERVATION SOCIETY WE'RE JUST FANATICAL ABOUT LIZARDS SAYS BILL DAVIS A NURSING ASSISTANT IN AUSTIN ONCE YOU STROKE THE SOFT TUMMY OF A HORNY LIZARD ADDS MR DAVIS NOTHING ELSE COMES CLOSE SEE RELATED LETTERS LETTERS TO THE EDITOR WHITHER YESTERYEAR'S HORNED TOADS WSJ AUG 16 1993 9307080078 YY93 MM08 9308160031 930722 COUNTERPOINT DINGELL'S JUSTICE PROBE IS JUSTIFIED BY BRYAN ABAS THE FAWNING PRESS COVERAGE OF ATTORNEY GENERAL JANET RENO IS CERTAINLY A TROUBLING SIGN HER MISTAKES ARE LIKELY TO BE IGNORED BY REPORTERS BUT HER DECISION TO REQUIRE ATTORNEYS IN THE DEPARTMENT'S ENVIRONMENTAL CRIMES SECTION TO RESPOND TO QUESTIONS FROM REP JOHN DINGELL'S STAFF IS FAR FROM A FERTILE PLACE FOR SKEPTICS TO FOCUS THE JOURNAL SEES MR DINGELL'S EMBRYONIC PROBE AS AN UNWARRANTED INVASION OF INTIMATE PROSECUTORIAL JUDGMENTS GENERAL DINGELL JULY 8 BY THAT STANDARD IT'S DIFFICULT TO KNOW HOW CONGRESS IS TO UNDERTAKE ITS OVERSIGHT RESPONSIBILITY WITH RESPECT TO THE JUSTICE DEPARTMENT IF IT CAN'T ASK ABOUT PROSECUTIONS WHAT'S LEFT OFFICESPACE LEASES IT'S TRUE THAT MR DINGELL'S INTEREST WAS PIQUED IN PART BY INSTANCES IN WHICH ENVIRONMENTAL PROTECTION AGENCY STAFFERS WERE DISMAYED THAT THE PLUG WAS PULLED ON CASES THEY THOUGHT HAD MERIT BUT SOME JUSTICE DEPARTMENT PROSECUTORS HAVE SIMILAR CONCERNS IN THE 1987 CHEM WASTE CASE IN ALABAMA THE US ATTORNEY WANTED TO PROSECUTE SO DID THE ENVIRONMENTAL CRIMES SECTION ATTORNEY OVERSEEING THE CASE BOTH WERE OVERRULED BY THE SECTION CHIEF NEIL CARTUSCIELLO IN THE CASE OF MARINUS VAN LEUZEN WHO DESPITE PRIOR WARNINGS ALLEGEDLY DESTROYED WETLANDS PROSECUTION WAS RECOMMENDED BY ATTORNEYS IN BOTH THE ENVIRONMENTAL CRIMES SECTION AND IN THE ARMY CORPS OF ENGINEERS IN PART BECAUSE ACCORDING TO A CORPS ATTORNEY HE WAS A REPEAT AND FLAGRANT VIOLATOR BUT NO CRIMINAL CHARGES WERE FILED IN THE CASE AGAINST PUREGRO INC WHICH ALLEGEDLY DUMPED HAZARDOUS WASTE INTO A FIELD IN WASHINGTON IT WAS THE WASHINGTON STATE ATTORNEY GENERAL REPUBLICAN KEN EIKENBERRY WHO WANTED THE JUSTICE DEPARTMENT TO PROSECUTE CORPORATE OFFICERS DITTO WITH 1989 ALLEGATIONS AGAINST WEYERHAEUSER FOR ILLEGALLY DUMPING HAZARDOUS WASTE EXCEPT THAT IN THIS CASE THE US ATTORNEY JOINED THE STATE ATTORNEY GENERAL IN URGING THAT FELONY CHARGES BE BROUGHT AGAINST WEYERHAEUSER AND THREE OF ITS EMPLOYEES IN EACH CASE LAWYERS WORKING UNDER MR CARTUSCIELLO'S SUPERVISION ACCEPTED PLEAS FROM THE CORPORATION TO MISDEMEANORS NO INDIVIDUALS WERE PROSECUTED THERE ARE OTHER SIMILAR CASES THEY MAY REFLECT NOTHING MORE THAN LEGITIMATE DIFFERENCES BETWEEN PROSECUTORS OVER THE MERIT OF CASES OR THE SIGNIFICANCE OF VIOLATIONS OR THEY MAY REFLECT THE FACT THAT PROSECUTORS IN THE DEPARTMENT'S UPPER ECHELONS ARE MORE SENSITIVE TO POLITICAL CONCERNS SUCH AS OFFENDING POTENTIAL CORPORATE DONORS THAN THOSE IN THE US ATTORNEYS' OFFICES IN WHICH CASE THE JOURNAL WOULD POINT OUT CORRECTLY THAT THE JUSTICE DEPARTMENT IS RUN BY POLITICAL APPOINTEES AND THAT THEIR DECISIONS AND THOSE OF THE PRESIDENT WHO APPOINTS THEM ARE SUBJECT TO REVIEW BY THE VOTERS THERE ARE HOWEVER STANDARDS BY WHICH TO JUDGE THE CONDUCT AND JUDGMENT OF PROSECUTORS IN SOME INSTANCES PROSECUTORS ARE APPROPRIATELY JUDGED TO HAVE ABUSED THEIR DISCRETION OR AUTHORITY BY FAILING OR REFUSING TO PROSECUTE CASES SETTLING THEM ON TERMS UNREASONABLY FAVORABLE TO DEFENDANTS OR CONVERSELY PROSECUTING CASES NOT SUPPORTED BY THE EVIDENCE IN OTHERS THEY INTERFERE WITH THE APPROPRIATE ADMINISTRATION OF JUSTICE TAKE FOR EXAMPLE WHAT HAPPENED IN THE MOST INTERESTING CASE BEING REVIEWED BY MR DINGELL THE INVESTIGATION OF ROCKWELL INTERNATIONAL FOR VIOLATING HAZARDOUS WASTE LAWS WHILE IT OPERATED THE ROCKY FLATS NUCLEAR PLANT NEAR DENVER A SPECIAL GRAND JURY WAS IMPANELED IN 1989 TO CONSIDER CHARGES AGAINST ROCKWELL ITS EMPLOYEES AND OFFICIALS IN THE FEDERAL ENERGY DEPARTMENT BUT JUST AS TARGET LETTERS WERE BEING PREPARED FOR MIDDLELEVEL MANAGERS IN AN ATTEMPT TO DETERMINE THE CULPABILITY IF ANY OF UPPERLEVEL ROCKWELL AND ENERGY DEPARTMENT MANAGERS SENIOR JUSTICE DEPARTMENT OFFICIALS DECIDED THAT NO INDIVIDUALS WOULD BE PROSECUTED EVEN THOUGH THE LEAD PROSECUTOR ON THE CASE FELT THERE WAS SUFFICIENT EVIDENCE TO INDICT INDIVIDUALS THE FBI AGENT ON THE CASE ASKED HIS SUPERIORS TO FIND OUT WHAT HAD HAPPENED HE WAS TOLD MR CARTUSCIELLO HAD DETERMINED THERE WAS INSUFFICIENT EVIDENCE A CASE OF LEGITIMATE DIFFERENCES AMONG PROSECUTORS PERHAPS EXCEPT THAT IN THIS INSTANCE THE CASE WAS CONTROLLED NOT BY THE PROSECUTORS BUT BY THE GRAND JURORS WHO KEPT PLUGGING AWAY INITIALLY PROSECUTORS LET THE JURY OPERATE AS THE JURORS SAW FIT BUT ACCORDING TO THE JURORS PROSECUTORS EVENTUALLY INTERFERED THEY REFUSED TO SUBPOENA A WITNESS JURORS WANTED TO QUESTION THEY DIRECTED WITNESSES NOT TO ANSWER QUESTIONS POSED BY JURORS THEY REFUSED TO HELP JURORS DRAFT AN INDICTMENT THEY WANTED TO ISSUE THEY TOLD THE JURORS IT WOULD BE INADVISABLE FOR THEM TO CONTINUE TO MEET THEY REFUSED TO HELP JURORS DRAFT A REPORT AND THEY TOLD THEM IT WOULD BE IMPROPER FOR THEM TO ISSUE A REPORT THIS WAS EVEN THOUGH THE APPLICABLE FEDERAL STATUTE EXPRESSLY ALLOWS THEM TO DO SO AND EVEN THOUGH THEY WERE IMPANELED EXPRESSLY BECAUSE AS A SPECIAL GRAND JURY THEY'D HAVE THE OPTION OF ISSUING A REPORT TO INFORM THE PUBLIC OF ACTIONS AT THE PLANT THAT ALTHOUGH NOT CRIMINAL WERE OF CONCERN THERE'S A LEGAL TERM FOR THIS PATTERN OF CONDUCT OBSTRUCTION OF JUSTICE HAD THIS SERIES OF ACTIONS BEEN PERPETRATED BY PEOPLE OUTSIDE JUSTICE THEY WOULD BE FACING A MULTIPLECOUNT INDICTMENT ARE PROSECUTORS IMMUNE FROM SUCH CHARGES IF PROSECUTIONS OF PROSECUTORS ARE APPROPRIATE IN SOME CASES HOW TO JUDGE WHEN THESE ARE HARDLY NOVEL QUESTIONS BUT THEY DESERVE ANSWERS AS THEY APPLY TO THE ROCKY FLATS CASE THE AUTHORITY OF EVERY FEDERAL GRAND JURY IS AT STAKE MEMBERS OF A CONGRESSIONAL PANEL ON WHICH MR DINGELL DIDN'T SERVE UNANIMOUSLY ISSUED A REPORT CALLING THE JUSTICE DEPARTMENT'S FAILURE TO PROSECUTE INDIVIDUALS IN THE ROCKY FLATS CASE VERY TROUBLING THEY URGED A CONGRESSIONAL PROBE OF THE JUSTICE DEPARTMENT'S ACTIONS THE DEPARTMENT'S OFFICE OF PROFESSIONAL RESPONSIBILITY WAS ASKED TO INVESTIGATE THE CONDUCT OF THE ROCKY FLATS PROSECUTORS IT HASN'T SAID A WORD PUBLICLY ABOUT ITS PROBE OR WHETHER IT'S CONDUCTING ONE NOR HAS PRESIDENT CLINTON OR MS RENO RESPONDED TO A REQUEST FROM THE JURORS FOR SUCH AN INVESTIGATION SO IN STEPS MR DINGELL IT'S POSSIBLE OF COURSE FOR A CONGRESSMAN TO ABUSE HIS AUTHORITY AND I TRUST THE JOURNAL WILL KEEP TABS ON HOW HE CONDUCTS HIS PROBE BUT TO ARGUE THAT MS RENO SHOULD BE CRITICIZED FOR NOT BLOCKING HIS INVESTIGATION EVEN BEFORE HE ASKS HIS QUESTIONS SUGGESTS MORE FEAR OF THE ANSWERS THAN THE QUESTIONS THERE IS AN ALTERNATIVE TO MR DINGELL BUT SOMEHOW I DOUBT THE JOURNAL WOULD FIND MUCH MERIT IN THE APPOINTMENT OF A SPECIAL PROSECUTOR MR ABAS IS AN ASSISTANT EDITOR OF THE ASPEN DAILY NEWS AS A REPORTER FOR WESTWORD A DENVER WEEKLY HE WROTE ABOUT THE WORK OF THE ROCKY FLATS GRAND JURY SEE RELATED LETTER LETTERS TO THE EDITOR A THREAT TO PROSECUTORIAL JUDGMENT WSJ AUG 16 1993 9307220086 YY93 MM08 9308160028 930713 BUSINESS WORLD A DENTAL DAM ON HYGIENISTS AND AN ECONOMIST'S LONG STORY BY TIM W FERGUSON IF YOU'RE LIKE ME THE TWICEYEARLY DENTAL CHECKUP THESE DAYS TYPICALLY INVOLVES 45 MINUTES UNDER THE LAMP WITH A HYGIENIST AND FIVE MINUTES WITH THE DOCTOR IF THAT THE HYGIENIST NOT ONLY DOES TEETH CLEANING BUT SPENDS AN ETERNITY PROBING CHARTING AND ADVISING ABOUT GUMS AVOIDING GINGIVITIS IS THE BALLGAME IN MOLAR MAINTENANCE WE'RE TOLD NOWADAYS SO THIS RITUAL MUST BE WORTH ENDURING THE DENTIST HIMSELF I'M NOT SURE ABOUT HE GLANCES AT MY XRAYS DOES A ONCEOVER WITH HIS LITTLE MIRROR REMARKS THAT A FILLING SHOULD BE REPLACED NEXT TIME WHICH NEVER COMES AND TRIES TO REFER ME TO AN ORTHODONTIST BEFORE I HAVE TIME TO GET UNCOMFORTABLE I'M BACK AT THE RECEPTION DESK ATTENDING TO THE INSURANCE PAPERWORK LIKE NEARLY ALL THE NATION'S 97000 HYGIENISTS MINE IS A WOMAN LIKE 85 OF OUR 174000 DENTISTS MINE IS A MAN IF THEY FIT THE US AVERAGE FOR THEIR OCCUPATIONS HIS INCOME IS TWICE HERS THE QUESTION OCCURS WHY DOES SHE NEED HIM THE SIMPLEST ANSWER IS THE LAW REQUIRES IT IN ONLY TWO STATES COLORADO AND WASHINGTON ARE HYGIENISTS PERMITTED TO PRACTICE INDEPENDENTLY FROM A DENTIST SOME LIBERAL DEMOCRATS IN THE CALIFORNIA LEGISLATURE ARE TRYING TO ADD THE STATE TO THAT SHORT LIST THEY ARE BEING FIERCELY CONTESTED BY THE DENTAL ASSOCIATION THE POTENTIAL DEMAND FOR HYGIENISTS IS HUGE THE BUREAU OF LABOR STATISTICS EXPECTS THEIR NUMBERS TO GROW AT LEAST THREE TIMES AS FAST AS DENTISTS' OVER THE NEXT DOZEN YEARS BUT EVEN THAT PROJECTION UNDERSTATES THE NEED FOR THEIR PREVENTIVE MAINTENANCE PERHAPS HALF THE CALIFORNIA POPULATION DOESN'T MAKE IT TO A DENTAL OFFICE EACH YEAR THE DENTISTS CLAIM THAT PERCENTAGE IS MUCH LOWER AND ELSEWHERE IN THE COUNTRY IT SURELY IS LEGENDARY DREAD OF PAIN IS SURELY A FACTOR BUT AFFORDABILITY AND CONVENIENCE MATTER TOO THE DENTIST CAN BE A BARRIER THIS IS PROFESSIONAL LICENSURE BEING USED TO BLOCK COMPETITION OR GET A PIECE OF THE ACTION FROM A GROWING FIELD THAT COULD HELP PEOPLE AVOID SERIOUS PROBLEMS THAT DO REQUIRE MEDICAL CARE THE SAME THING IS TRUE IN AT LEAST 20 STATES THAT PROHIBIT TREATMENT BY PHYSICAL THERAPISTS WITHOUT REFERRAL BY A PHYSICIAN AS IT IS THE DEMAND FOR THERAPY IN TREATING THE STIFF THE INJURED AND THE ELDERLY IS OUTPACING THE SUPPLY OF 50000 QUALIFIED PRACTITIONERS WHOSE RANKS 75 FEMALE ARE EXPANDING FASTER THAN HYGIENISTS' JUST AS THERAPISTS HAVE BANDED TOGETHER OR BECOME FULLTIME SELFEMPLOYED 18 AT LAST COUNT SO DO MANY HYGIENISTS WISH TO ALSO CALIFORNIA ASSEMBLYMAN RUSTY AREIAS'S BILL WOULD ALLOW THE SEPARATE PRACTICE IN ORDER TO ACCOMMODATE OBJECTIONS HE WOULD REQUIRE INDEPENDENTS TO EXCEED THE STANDARD TWOYEAR TRAINING REQUIREMENTS FOR HYGIENISTS AND LIMIT THE NEW FREEDOM TO THOSE SERVING IMMOBILE ELDERLY THE RETARDED AND SCHOOLCHILDREN NO ONE IS SEEKING TO DIVERT PATIENTS WHO ACTUALLY HAVE CALL FOR THE DIAGNOSTIC OR SURGICAL EXPERTISE THAT A DENTIST GAINS IN FOUR YEARS OF GRADUATE TRAINING IN TODAY'S LITIGIOUS WORLD IT WOULDN'T MAKE SENSE TO TRY TO OVERSTEP PROFESSIONAL BOUNDS THIS IS JUST A MEANS TO GET ECONOMICAL AND RUDIMENTARY CARE TO MANY WHO DON'T NOW HAVE IT THIS BIG FOOT IN THE DOOR FINGER IN THE MOUTH HAS PASSED THE LOWER HOUSE WITH MOST REPUBLICANS THE PROFESSED DEFENDERS OF FREE ENTERPRISE OPPOSING IT THE DENTIST PAC IS ONE OF THE 10 BIGGEST DONORS TO STATE CAMPAIGNS IT CLEARED A MAJOR COMMITTEE IN THE STATE SENATE YESTERDAY AFTERNOON WITH LUCK CALIFORNIA WILL BEGIN TO LET THE DENTALSERVICES MARKET OPEN WIDE HENRY HAZLITT DIED LAST WEEK AT AGE 98 ONE MORE EXPIRING EMBER FROM THE LONELY CAMPFIRE BUILT BY FREEMARKET INTELLECTUALS IN THE WINTRY NIGHT OF INDIVIDUAL LIBERTY IN AMERICA THE MIDDLE DECADES OF THIS CENTURY MOST OF US WHO TOY WITH THE FASHIONS AND VARIATIONS OF MARKET THINKING TODAY GET ONLY AN OCCASIONAL REMINDER OF HOW PRECIOUS SUCH THOUGHT WAS WHEN COLLECTIVISM REIGNED AS A US VIRTUE IN THE YEARS AROUND WORLD WAR II THIS VIEW WAS KEPT ALIVE BY THE LIKES OF OUR DISTINGUISHED FRIEND HAZLITT AS LUDWIG VON MISES ANOTHER OF THE SENTINELS ADDRESSED HIM ON HIS 70TH BIRTHDAY IN THE STILLCHILLY CLIMATE OF LATE NOVEMBER 1964 INDIGENT BY TODAY'S STANDARDS THE TEENAGE HAZLITT TOOK A JOB BRIEFLY AT THE WALL STREET JOURNAL IN 1913 AND NEVER LOOKED BACK HE TAUGHT HIMSELF THE MECHANICS OF FREEDOM THROUGH READING AND ANALYZING EVENTUALLY CATCHING THE EYE OF HL MENCKEN AS ONE OF THE FEW ECONOMISTS IN HUMAN HISTORY WHO COULD REALLY WRITE CLARITY WAS THE BASIS FOR HIS 20YEAR RUN AS A COLUMNIST FOR NEWSWEEK MAGAZINE ONE OF A HANDFUL OF MIRACULOUS PLACEMENTS OF LIBERTARIAN PUNDITS IN THE POPULAR PRESS AT THE VERY TIME THEIR IDEAS WERE WIDELY SCORNED MILTON FRIEDMAN AND OTHERS TOOK UP HAZLITT'S COLUMN IN 1966 THE EXISTENCE OF THESE SCATTERED VOICES WAS A LIFELINE TO YOUNGER READERS WHO POLITICALLY IN TIME WOULD BRING THE IDEAS IN FROM THE COLD PERHAPS THE MOST REMARKABLE OF HAZLITT'S WORKS WAS HIS 1946 MINIBOOK ECONOMICS IN ONE LESSON WHICH SELLS IN THE THOUSANDS ANNUALLY TO THIS DAY JIM POWELL EDITOR OF LAISSEZ FAIRE BOOKS AND ONE OF THE LAST TO WORK WITH HAZLITT ESTIMATES A MILLION COPIES OF THE EXPLANATORY VOLUME MAY HAVE GONE OUT FROM ITS VARIOUS PUBLISHERS NOW THE FOUNDATION FOR ECONOMIC EDUCATION TO WHICH HAZLITT AND OTHERS DEEDED THE FREEMAN MAGAZINE THEY'D REVIVED IN THE EARLY 1950S HAS PUT OUT 358 PAGES OF HIS SEPARATE WISDOM CLEARLY HAZLITT WAS UNAFRAID OF TAKING UNPOPULAR STANDS AGAINST CREEPING STATISM NOT ALL OF THEM ULTIMATELY WON THE DAY HIS 1947 WORK WILL DOLLARS SAVE THE WORLD CHALLENGED CONVENTIONAL WISDOM THAT THE MARSHALL PLAN WOULD REVIVE WESTERN EUROPE AND HELP THE US HAZLITT WAS ALSO COMMITTED IN A PERSONAL WAY TO COMBATTING THE POLITICAL CORRECTNESS OF THE DAY IN ACADEMIA HELPING TO LINE UP OUTSIDE FUNDING FOR VON MISES TO TEACH HIS AUSTRIAN ECONOMICS AFTER HE FLED THE NAZIS AND COULDN'T FIND A PROFESSORSHIP IN AMERICA IT WAS THE UNDERAPPRECIATED VON MISES HIS OWN FLAME KEPT TO A FLICKER BY LESSER LIGHTS WHO SUMMONED UP OPTIMISM ABOUT A PASSING TORCH IN HIS BIRTHDAY TRIBUTE TO HAZLITT ON THAT NIGHT IN 1964 WITH THE LANDSLIDE TRIUMPH OF GREAT SOCIETY WELFARISM STILL ECHOING FROM THE POLLS HE SAID EVERY FRIEND OF FREEDOM MAY TODAY IN THIS POSTELECTION MONTH BE RATHER PESSIMISTIC ABOUT THE FUTURE BUT LET US NOT FORGET THAT THERE IS RISING A NEW GENERATION OF DEFENDERS OF FREEDOM LET US HOPE THAT THESE YOUNG MEN WILL SUCCEED WHERE WE IN OUR GENERATION FAILED BUT IF THEY SUCCEED THIS WILL BE TO A GREAT EXTENT YOUR MERIT THE FRUIT OF THE WORK THAT YOU HAVE DONE IN THE FIRST 70 YEARS OF YOUR LIFE THE GUEST OF HONOR LIVED ON TO SEE THE LEGACY THE HENRY HAZLITTS OF THIS WORLD CAN LEAVE SEE RELATED LETTER LETTERS TO THE EDITOR DENTAL LAWS MEANT TO PROTECT PATIENTS WSJ AUG 5 1993 SEE RELATED LETTER LETTERS TO THE EDITOR INSULT TO MEMORY OF HENRY HAZLITT WSJ AUG 16 1993 9307130098 9308050098 YY93 MM08 9308130171 930813 INTERNATIONAL WORLD ECONOMY STEEL RULING SHOWS HOW DUMPING LAWS IGNORE NEW REALITIES OF WORLD TRADE BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RAYMOND HOPP IS A CAUTIOUSLY HAPPY MAN HE MANUFACTURES SPARKPLUG GASKETS FOR US AND EUROPEAN AUTO MAKERS AND HIS BUSINESS HAS JUST BEEN SAVED AT LEAST FOR NOW THANKS TO A COMPLEX DECISION IN A WASHINGTON ANTIDUMPING CASE HE WON'T PAY PUNITIVE DUTIES TO IMPORT JAPANESE STEEL NEEDED BY THE METALWORKING FACTORY THAT SUPPORTS HIS 52 EMPLOYEES IN A NORTHERN NEW JERSEY TOWN WE HAD THE POTENTIAL OF LOSING UP TO 50 OF OUR US MARKET SAYS MR HOPP PRESIDENT OF HK METALCRAFT THE GASKET MAKER BUT THINGS AREN'T AS CHEERFUL AT BIG STEEL THE BASIC US INDUSTRY THAT SOUGHT EXTRA TARIFFS TO RESTRICT FOREIGN COMPETITION WE WON MAJOR PARTS OF THE CASES BUT WE DIDN'T WIN ALL THAT THE FACTS AND LAW SHOULD HAVE PROVIDED THE INDUSTRY COMPLAINED IN A STATEMENT AND THE MAJOR STEEL COMPANIES VOWED TO CONTINUE THEIR FIGHT AGAINST IMPORTS THUS VAST AMOUNTS OF STEEL WILL CONTINUE TO ENTER THE US MARKET UNIMPEDED WHILE MANY OTHER TYPES OF FOREIGN STEEL WOULD STILL FACE PUNISHING TARIFFS THIS LEAVES MANY STEELMAKERS PLUS STEEL USERS LESS THAN SATISFIED BUT SO TOO ARE EXPERTS WHO STUDY THE ANTIDUMPING LAWS THAT MADE THE CASE POSSIBLE THEY SAY THESE PROTECTIONIST DEVICES MEANT TO SHIELD US MANUFACTURERS FROM PREDATORY OVERSEAS COMPETITION ARE INCREASINGLY IRRELEVANT TO THE REALITIES OF WORLD TRADE WHERE COMMODITIES AND COMPONENTS MOVE IN EVER MORE COMPLEX INTERLOCKING PATTERNS THESE LAWS ARE VERY HARD TO APPLY FAIRLY GIVEN THE CHANGES TAKING PLACE IN GLOBAL COMMERCE SAYS ONE ECONOMIST WHO SPECIALIZES IN INTERNATIONAL AFFAIRS AND WHO THINKS THEY TOO OFTEN ARE APPLIED FOR NARROWLY PROTECTIONIST REASONS SO MANY EXPERTS WOULD LIKE THEM CHANGED PREFERABLY ON A WORLDWIDE BASIS IN THE SOCALLED URUGUAY ROUND OF TRADE TALKS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE STEEL CASE SETTLED LATE LAST MONTH SHOWS WHY IN JUNE 1992 12 MAJOR US STEELMAKERS LATER JOINED BY THE UNITED STEELWORKERS UNION ALLEGED THAT IMPORTS FROM 21 COUNTRIES WERE BEING SOLD AT LESS THAN FAIR VALUE CAUSING THEM GRIEVOUS HARM PARTLY BECAUSE OF THE WAY THE COMMERCE DEPARTMENT MUST APPLY THESE LAWS STEELMAKERS DID WELL IN TORTUOUS HEARINGS THAT FOLLOWED THEY WON PRELIMINARY JUDGMENTS IN 72 OF 84 SPECIFIC EXAMPLES AFFECTING 20 NATIONS BUT STEEL USERS MOSTLY SMALL COMPANIES THAT AS A GROUP EMPLOY 10 TIMES MORE WORKERS CRIED FOUL THEY CLAIM US MILLS OFTEN CAN'T OR WON'T MAKE THE PRODUCTS THEY NEED FORCING THEM TO GO OFFSHORE AND QUITE OFTEN PAY PREMIUM PRICES THESE METAL BENDERS OFTEN NEED STEEL WITH SPECIAL CHARACTERISTICS SUCH AS MALLEABILITY OR ODD SIZES IN SMALL QUANTITIES AND OF EXTRAHIGH QUALITY BIG STEEL WHICH PREFERS LARGE RUNS OF BASIC GOODS FREQUENTLY CAN'T BE BOTHERED WITH THESE DETAILS THAT'S THE EXPERIENCE OF LEO HAWK CHAIRMAN OF AN OHIO FABRICATOR OF ELECTRIC STOVE PARTS FOR COMPANIES SUCH AS GENERAL ELECTRIC CO AND MAYTAG CORP BECAUSE US MILLS WON'T PRODUCE THE SPECIAL COILS HE NEEDS HE GETS HALF HIS STEEL OVERSEAS AND PAYS EXTRA TO DO SO IT'S A MATTER OF QUALITY AND CAPABILITY HE SAYS SO WHEN THE DUMPING CASE MOVED TO THE US INTERNATIONAL TRADE COMMISSION IT GOT A HARD SECOND LOOK THAT AUTONOMOUS BODY IS SUPPOSED TO DETERMINE WHETHER IMPORTS REALLY DO HURT DOMESTIC INDUSTRIES AND IN 42 OF THE EXAMPLES COVERING HALF THE 34 BILLION OF STEEL IN DISPUTE IT SAID NO IT AGREED THAT FABRICATORS' SPECIAL NEEDS AREN'T ALWAYS MET BY BASIC MILL PRODUCTS AND THAT BIG STEEL'S DAMAGE CLAIMS LACKED CREDIBILITY TEN YEARS AGO IT WAS EASY TO SAY THAT STEEL WAS STEEL SAID ITC COMMISSIONER DAVID ROHR NOW STEEL PRODUCTS ARE BECOMING MORE SPECIALIZED INDIVIDUALIZED AND OFTEN AREN'T INTERCHANGEABLE COMMODITIES NONE DOUBT THAT BIG STEEL HAS SERIOUS PROBLEMS SUCH AS ITS OWN PAST REFUSAL TO MODERNIZE QUICKLY AS WELL AS SUBSIDIZED COMPETITION FROM ABROAD IT COULD USE OUTSIDE HELP INCLUDING INTERNATIONAL AGREEMENTS TO REDUCE GLOBAL CAPACITY THAT HAS REMAINED SWOLLEN MOSTLY FOR LOCAL POLITICAL REASONS BUT SEEKING RELIEF IN PROTECTIONIST LAWS IS ANOTHER MATTER HALTING IMPORTS COULD SEND MANY FABRICATION JOBS ABROAD AND INCREASE IMPORTS OF FINISHED PRODUCTS SUCH AS FROM TAIWAN METAL BENDERS WHICH USE THE SAME JAPANESE STEEL THAT AMERICANS COULD NO LONGER BUY AT MARKET RATES IF PROTECTION IS NEEDED MANY EXPERTS HOPE TRADING NATIONS WILL DESIGN A SCALPEL TO REPLACE THE BLUDGEON OF ANTIDUMPING LAWS AND USE IT WITH RESTRAINT 9308130170 930813 BUSINESS BRIEF LANDS' END NET SURGED IN LATEST PERIOD WHILE GANDER MOUNTAIN LOSS WIDENED LANDS' END INC REPORTED A BETTERTHANEXPECTED 42 EARNINGS SURGE IN ITS FISCAL SECOND QUARTER WHICH THE UPSCALE CATALOG CONCERN SAID RESULTED FROM SELLING MORE MERCHANDISE AT FULL PRICE SEPARATELY GANDER MOUNTAIN INC A SPECIALTY HUNTING AND FISHING CATALOGER REPORTED THAT LOSSES WIDENED IN ITS FISCAL FOURTH QUARTER THE RESULT OF LOWERTHANEXPECTED CATALOG SALES AND HIGHERTHANEXPECTED CLEARANCE DISCOUNTS IT ALSO REPORTED FULLYEAR PROFIT PLUNGED 97 AFTER THE COMPANY MOVED TO INCREASE ITS RETAIL SALES OPERATIONS THE NEWS PUSHED LANDS' END'S STOCK UP NEARLY 9 YESTERDAY TO CLOSE AT 32125 UP 2375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING GANDER SHARES WERE DOWN 50 CENTS TO 875 IN LATE OVERTHECOUNTER TRADING ANALYSTS SAID BOTH COMPANIES BECAUSE OF RECENT STRATEGIC MOVES ARE POSITIONED TO DO WELL IN THE IMPORTANT FALL AND CHRISTMAS PERIODS LANDS' END REPORTED NET INCOME OF 36 MILLION OR 20 CENTS A SHARE FOR THE QUARTER ENDED JULY 30 COMPARED WITH 25 MILLION OR 14 CENTS A SHARE A YEAR EARLIER SALES CLIMBED 94 TO 151 MILLION FROM 138 MILLION THE DODGEVILLE WIS CONCERN SAID GROSS PROFIT MARGINS GREW TO 415 OF SALES FROM 407 IN 1992 IT SAID IT SOLD MORE MERCHANDISE AT FULL PRICE BECAUSE IT DELAYED DISTRIBUTION OF ITS CLEARANCE CATALOG TILL THE END OF ITS SECOND QUARTER IN THE FIRST HALF LANDS' END NET ROSE 34 TO OF 91 MILLION OR 50 CENTS A SHARE FROM 68 MILLION OR 37 CENTS A SHARE A YEAR EARLIER SALES CLIMBED 10 TO 307 MILLION FROM 279 MILLION GANDER BASED IN WILMOT WIS HAD A LOSS OF 21 MILLION OR 70 CENTS A SHARE IN ITS QUARTER ENDED JUNE 30 COMPARED WITH A LOSS OF 511000 OR 17 CENTS A SHARE A YEAR EARLIER SALES ROSE 26 TO 365 MILLION FROM 29 MILLION IN FISCAL 1993 GANDER'S PROFIT PLUNGED TO 63000 OR TWO CENTS A SHARE FROM 24 MILLION OR 79 CENTS A SHARE IN FISCAL 1992 OVER THE PAST YEAR GANDER ANNOUNCED THE PLANNED OPENING OF THREE RETAIL STORES BRING ITS TOTAL TO EIGHT BY MARCH 1994 IT ALSO OPENED A CLEARANCE OUTLET AND A DISTRIBUTION CENTER 9308130169 930813 MARKETING & MEDIA DOW JONES PLANS TO OFFER VIDEO NEWS ON COMPUTERS NEW YORK DOW JONES & CO SAID IT WILL LAUNCH IN SEPTEMBER A VIDEO BUSINESSNEWS SERVICE DELIVERED TO CUSTOMERS' DESKTOP COMPUTER TERMINALS THE SERVICE DOW JONES INVESTOR NETWORK WILL TRANSMIT VIDEO INTERVIEWS WITH CORPORATE OFFICERS GOVERNMENT POLICY MAKERS AND OTHERS IT ALSO WILL PROVIDE COVERAGE OF MAJOR BREAKING CORPORATE ANNOUNCEMENTS NEWS CONFERENCES AND OTHER PROGRAMMING USING THE WORLDWIDE NEWSGATHERING RESOURCES OF DOW JONES WHICH PUBLISHES THE WALL STREET JOURNAL INITIAL CUSTOMERS ARE EXPECTED TO BE LARGE INSTITUTIONAL INVESTORS INCLUDING BROKERAGE FIRMS AND BANKS THE NETWORK PRODUCES A MESSAGE ON CUSTOMERS' COMPUTER SCREENS NOTIFYING THEM OF AN IMPENDING NEWS EVENT CUSTOMERS CAN THEN DECIDE WHETHER TO VIEW THE EVENT THE VIDEO HAS NO EFFECT ON OTHER APPLICATIONS RUNNING ON A USER'S COMPUTER 9308130168 930813 INTERNATIONAL SOUTH KOREA ACTS TO CONTROL BLACK MONEY' PRESIDENT KIM ORDERS HALT TO USE OF FAKE NAMES IN FINANCIAL TRANSACTIONS BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA PRESIDENT KIM YOUNG SAM STAGED A SURPRISE RAID ON KOREA'S HUGE UNDERGROUND ECONOMY INTRODUCING A REALNAMES FINANCIAL TRANSACTION SYSTEM THE MOVE WILL RATTLE KOREA'S EQUITY MARKETS AND COULD HINDER EFFORTS TO GET THE COUNTRY'S ECONOMIC ENGINE CHUGGING AGAIN BUT IT ALSO PROVIDES THE STRONGEST CONFIRMATION YET OF MR KIM'S COMMITMENT TO ECONOMIC REFORM ECONOMISTS ESTIMATE THAT AT LEAST 12 TRILLION WON 1485 BILLION OR 4 OF KOREA'S TOTAL DEPOSIT BASE IS HELD UNDER FINANCIAL PSEUDONYMS MUCH OF THAT IS INVESTED IN THE STOCK AND REALESTATE MARKETS FROM NOW ON ALL FINANCIAL TRANSACTIONS SHOULD BE CONDUCTED UNDER REAL NAMES THE PRESIDENT SAID ON NATIONAL TELEVISION THURSDAY EVENING AFTER ISSUING A DECREE THAT WAS EFFECTIVE IMMEDIATELY BLACK MONEY WILL DISAPPEAR THE UNDERGROUND ECONOMY WILL GO AWAY FINANCE MINISTER HONG JAE HYONG ORDERED ALL BANKS AND FINANCIAL INSTITUTIONS CLOSED FRIDAY MORNING TO PREVENT MASS REDEMPTIONS OF FALSENAME ACCOUNTS IT WASN'T CLEAR IF THE ORDER APPLIED TO SECURITIES HOUSES OR WHETHER THE STOCK MARKET WOULD BE OPEN THIS MORNING THE ANNOUNCEMENT SHOCKED INVESTORS AS WELL AS FINANCE OFFICIALS WHO WERE TOLD AT 640 PM TO REMAIN IN THEIR OFFICES FOR MR KIM'S ANNOUNCEMENT WHICH WAS BROADCAST 50 MINUTES LATER IN LONDON THE PRICE OF CONVERTIBLE BONDS AND GLOBAL DEPOSITORY RECEIPTS ISSUED AGAINST SHARES IN KOREAN CONGLOMERATES TUMBLED BETWEEN 10 AND 15 MR KIM HAD MADE THE INTRODUCTION OF A REALNAME FINANCIAL SYSTEM A KEY PLANK OF HIS PRESIDENTIAL CAMPAIGN IN DECEMBER BUT APPEARED TO BACK AWAY FROM THE PLEDGE AFTER HIS INAUGURATION IN FEBRUARY BECAUSE OF ITS POTENTIAL EFFECTS ON KOREA'S ECONOMY MR KIM SAID INDIVIDUALS WOULD HAVE TWO MONTHS TO TRANSFER ASSETS UNDER FALSE NAMES TO REALNAME ACCOUNTS DEPOSITS HELD UNDER PSEUDONYMS VALUED AT MORE THAN 50 MILLION WON 61889 WILL BE INVESTIGATED HE SAID AND ANYONE REMITTING LARGE SUMS OF MONEY OVERSEAS WILL BE SUBJECT TO GOVERNMENT AUDIT INVESTORS WHO DON'T SHIFT THEIR FUNDS INTO LEGITIMATE ACCOUNTS AFTER TWO MONTHS COULD BE FINED AS MUCH AS 60 OF THE VALUE OF THE ACCOUNTS THE MOVE IS EXPECTED TO HAVE A SHORTTERM DAMPING EFFECT ON THE ECONOMY WHICH IS CURRENTLY PREDICTED TO GROW AT BETWEEN 5 AND 6 THIS YEAR IT GREW AT A 47 ANNUAL PACE IN 1992 WELL BELOW THE NEAR10 ANNUAL CLIP IT AVERAGED OVER THE PAST 30 YEARS THE SLUMP HAS BEEN COMPOUNDED BY RISING INTEREST RATES FUELED IN PART BY A STEADY WITHDRAWAL OF FUNDS FROM THE BANKING SYSTEM AND STOCK MARKET THE CAPITAL OUTFLOW WAS GENERATED IN PART BY RUMORS THAT MR KIM WOULD ABOLISH FINANCIAL PSEUDONYMS SOONER RATHER THAN LATER SHARE PRICES ARE ALSO EXPECTED TO TUMBLE IN THE SHORT TERM ANALYSTS SAID BUT COULD RECOVER NOW THAT A MAJOR SOURCE OF UNCERTAINTY HAS BEEN REMOVED FROM THE MARKET THE HIGH THRESHOLD ON THE VALUE OF ACCOUNTS SUBJECT TO INVESTIGATION COULD ALSO SOFTEN THE BLOW WILL THE AVERAGE PUNTER HAVE MORE THAN 50 MILLION WON IN HIS ACCOUNT SAID ANDREW HOLLAND DIRECTOR FOR RESEARCH FOR BARCLAYS DE ZOETE WEDD SECURITIES LTD I THINK NOT 9308130167 930813 WHO'S NEWS HERTZ CORP NAMES KOCH PRESIDENT OPERATING CHIEF BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL PARK RIDGE NJ CAR RENTAL COMPANY HERTZ CORP NAMED CRAIG R KOCH 46 YEARS OLD TO A NEW POSITION AS PRESIDENT AND CHIEF OPERATING OFFICER MR KOCH WHO JOINED HERTZ IN 1971 WAS PREVIOUSLY AN EXECUTIVE VICE PRESIDENT OF THE CORPORATION AND PRESIDENT OF THE NORTH AMERICAN RENT A CAR DIVISION HE WILL BE RESPONSIBLE FOR WORLDWIDE CAR RENTAL OPERATIONS HIS APPOINTMENT WOULD APPEAR TO MAKE HIM AN EVENTUAL SUCCESSOR TO HERTZ CHAIRMAN AND CHIEF EXECUTIVE FRANK A OLSON 61 WHO HAS BEEN THE COMPANY'S TOP EXECUTIVE SINCE 1980 IN AN INTERVIEW MR KOCH SAID HIS APPOINTMENT BRINGS AN ADDED DEGREE OF MANAGEMENT EXPERIENCE AND FOCUS ON THE GLOBALIZATION OF THE RENTACAR PRODUCT WORLDWIDE THE ECONOMIC CLIMATE IN EUROPE IS TERRIBLE RIGHT NOW HE SAID THE CHALLENGE THERE IS TO CONTINUE SOMEHOW TO GROW OUR REVENUE IN LIGHT OF THE ECONOMIC SITUATION THE COMPANY HAD ABOUT 28 BILLION IN REVENUE IN 1992 EXCLUDING FRANCHISED OPERATIONS ABOUT 30 CAME FROM INTERNATIONAL OPERATIONS PARTICULARLY IN THE US HE SAID CAR RENTAL COMPANIES FACE VERY LARGE INCREASES IN COSTS FOR PURCHASING AUTOMOBILES LAST YEAR HE SAID AUTO COMPANY PRICE INCREASES RAISED THE NET EFFECT OF COST TO US BY ABOUT 30 AND HE SAID HE EXPECTS THE 1994 MODEL YEAR TO BRING ANOTHER INCREASE IN THE RANGE OF 25 MAYBE AS HIGH AS 30 FLEETRELATED COSTS REPRESENT ABOUT ONETHIRD OF OUR COSTS OUR CHALLENGE IS TO FIGURE OUT WAYS TO PASS THROUGH COSTS TO CUSTOMERS IN A FASHION WHICH CAN BE ACCEPTED IN THE MARKET PLACE ABOUT 70 OF THE HERTZ FLEET IS COMPRISED OF FORD CARS HERTZ PURCHASED IN 1988 FROM UAL CORP IS 49OWNED BY FORD MOTOR CO 26 BY VOLVO NORTH AMERICA 20 BY HERTZ MANAGEMENT AND 5 BY GERMANY'S COMMERZ BANK MR KOCH EXPECTS TO SEE RENTAL CAR PRICE INCREASES STARTING IN THE FALL IN THE NEIGHBORHOOD OF AROUND 10 ABOUT THE SAME AS A YEAR AGO THIS YEAR WE'LL HAVE A DELAY OF SEVERAL MONTHS IN RAISING PRICES HE SAID BECAUSE CAR MAKERS HAVEN'T INDICATED THEIR FLEET PRICES FOR THE NEW MODEL YEAR MR NOTHWANG ESSENTIALLY IS REPLACING WHAT I DID BEFORE MR KOCH SAID I RAN THE NORTH AMERICAN OPERATIONS IN TOTAL SINCE ABOUT 1980 HE IS GOING TO FOCUS IN THE BEGINNING ON THE DOMESTIC CAR RENTAL BUSINESS I AM GOING TO RETAIN RESPONSIBILITY FOR CANADA AND ALL OF LATIN AMERICA HERTZ HAS OVER 5000 CAR RENTAL LOCATIONS IN 130 COUNTRIES IT ALSO HAS A MAJOR CONSTRUCTION AND INDUSTRIAL EQUIPMENT RENTAL COMPANY 9308130166 930813 JOINT VENTURES IN CHINA FEEL THE PINCH OF SWAP MARKETS' SQUEEZE FOR DOLLARS BY CRAIG S SMITH STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG FOR SIX WEEKS HB FULLER CHINA ADHESIVES LTD PLACED DAILY CALLS TO CANTON'S TWO CURRENCY SWAP MARKETS TO CHECK ON THE COMPANY'S APPLICATIONS TO EXCHANGE YUAN FOR DOLLARS THE ANSWER WAS ALWAYS THE SAME THERE AREN'T ENOUGH DOLLARS AROUND TO COMPLETE A TRADE LIKE MANY OTHER JOINT VENTURES HB FULLER IS ALREADY FEELING THE CHILL AS THE CHINESE GOVERNMENT TRIES TO COOL AN OVERHEATED ECONOMY A MONTH AFTER ASSUMING CONTROL OF CHINA'S CENTRAL BANK VICE PREMIER ZHU RONGJI'S EFFORTS TO STABILIZE THE YUAN APPEAR TO BE PAYING OFF BUT AT THE COST OF DISRUPTING SOME COMPANIES' FINANCIAL OPERATIONS AND HARD CURRENCY ISN'T THE ONLY THING IN SHORT SUPPLY CREDIT AT LOCAL BANKS HAS PRACTICALLY DISAPPEARED LEAVING SOME JOINT VENTURES WITH NO CHOICE BUT TO DIP INTO RESERVES OR CALL IN CASH FROM ABROAD AND IF BEIJING'S AUSTERITY PROGRAM RESULTS IN A BIG DROP IN SPENDING THESE VENTURES COULD SUFFER CRIPPLING BLOWS NOT ALL JOINT VENTURES FEEL THE PINCH OF COURSE THOSE FOCUSED ON MAKING GOODS FOR EXPORT ARE LARGELY INSULATED FROM THE SWINGS IN CHINA'S ECONOMY THE MOST VULNERABLE ARE THOSE THAT CAME FOR THE CHINESE MARKET ITSELF LURED BY THE PROSPECT OF SELLING TO THE COUNTRY'S 12 BILLION CONSUMERS SINCE CHINA'S INVESTMENT LAWS WERE WRITTEN A DECADE AGO JOINT VENTURES HAVE BECOME THE MOST COMMON FORM OF FOREIGN INVESTMENT ON THE MAINLAND ACCOUNTING FOR THE BULK OF THE ESTIMATED 9 BILLION INVESTED IN CHINA LAST YEAR MUCH OF THAT INVESTMENT HAS BEEN IN PROPERTYDEVELOPMENT VENTURES WHICH ARE SURE TO FEEL THE SQUEEZE AS CHINA TRIES TO QUASH REALESTATE SPECULATION BUT MANY INDUSTRIAL JOINT VENTURES ARE FACING DIFFICULTIES TOO JOINT VENTURES GENERATE AS MUCH AS 20 OF THE COUNTRY'S EXPORTS ACCORDING TO SOME CHINA TRADE CONSULTANTS BUT THE VENTURES ALSO PULL IN A LARGE CHUNK OF THE COUNTRY'S IMPORTS WHICH LEAPED AT A 232 ANNUAL RATE IN THIS YEAR'S FIRST HALF AND CONTRIBUTED TO CHINA'S FIRST TRADE DEFICIT SINCE 1989 NOW CHINA'S NEW ECONOMIC REGIMEN IS PUTTING A PRIORITY ON BOOSTING EXPORTS AND CONSERVING HARD CURRENCY HB FULLER CO OF ST LOUIS SET UP ITS OPERATIONS IN CANTON IN 1989 HOPING TO BREAK INTO CHINA'S VAST MARKET THE JOINT VENTURE WHOSE CHINESE PARTNER IS A BRANCH OF GUANGDONG INTERNATIONAL TRUST & INVESTMENT CORP OR GITIC NOW SELLS INDUSTRIAL ADHESIVES TO ABOUT 600 CUSTOMERS ON THE MAINLAND INCLUDING BEER AND CIGARETTE FACTORIES THAT VERY SUCCESS PUTS FULLER IN A BIND LIKE MANY OTHERS THE JOINT VENTURE AGREED TO TARGET A PERCENTAGE OF PRODUCTION FOR EXPORT IN THIS CASE 50 SO THAT IT COULD EARN HARD CURRENCY AND LIKE MANY OTHERS FULLER HAS INSTEAD FOCUSED ON THE CHINESE MARKET USING THE COUNTRY'S OFFICIAL SWAP MARKETS TO CONVERT YUAN EARNINGS INTO HARD CURRENCY TO BUY RAW MATERIALS BUT NOW THE SWAP MARKETS HAVE TOO FEW DOLLARS TO SELL ADMINISTRATIVE CONTROL AS MUCH AS MARKET DEMAND IS BELIEVED TO BE RESPONSIBLE FOR THE SHORTAGE AND CONSULTANTS SAY IT MAY BE ONLY A MATTER OF TIME BEFORE CHINESE AUTHORITIES INSTRUCT JOINT VENTURES TO MEET THEIR EXPORT TARGETS HENCE FULLER IS LOOKING FOR CUSTOMERS OUTSIDE CHINA SAYS GENERAL MANAGER WILLIAM O'BRIEN THE MANIPULATION OF SWAP MARKET RATES IS USED TO RESTRICT ACCESS TO THE DOMESTIC MARKET AND PUT SIGNIFICANT PRESSURE ON COMPANIES TO EXPORT MOREAND IT WORKS SAYS MR O'BRIEN HE HOPES THE VENTURE WILL REACH THE 50 EXPORT TARGET BY YEAR END UP FROM ABOUT 30 NOW BUT IT WON'T BE EASY OUR CHINA PRODUCTION ISN'T NECESSARILY COMPETITIVE ON REGIONAL MARKETS SAYS MR O'BRIEN THE IDEA THAT IT'S CHEAP TO OPERATE IN CHINA IS A MISTAKE MANY YOUNG JOINT VENTURES ALSO FIND LOCAL FINANCING HARD TO COME BY WITH CREDIT INCREASINGLY SCARCE AND ITS ALLOCATION SOMETIMES DETERMINED BY POLITICAL FACTORS SOME JOINT VENTURES COMPLAIN THEY ARE PASSED OVER IN FAVOR OF LESS CREDITWORTHY STATE ENTERPRISES UNLESS PEOPLE HAD CREDIT LINES IN PLACE CLEARLY AT THIS STAGE THEY ARE GOING TO HAVE TROUBLE GETTING FINANCING SAYS PHILIP DAY DIRECTOR OF PACIFIC RIM CONSULTING GROUP THAT LEAVES MANY VENTURES THE UNATTRACTIVE OPTION OF USING HARD CURRENCY TO FINANCE OPERATIONS WHOSE INCOME IS BASED ON THE VOLATILE YUAN JOINT VENTURES SET UP TO MANUFACTURE GOODS FOR EXPORT ARE IN A BETTER POSITION SHENZHEN KONKA ELECTRONIC GROUP CO A TELEVISIONMANUFACTURING JOINT VENTURE BETWEEN HONG KONGLISTED KONG WAH INDUSTRIAL CO AND CHINA TRAVEL SERVICE SELLS ONLY 30 OF ITS PRODUCTION IN CHINA IT RELIES ON EXPORT EARNINGS FOR ITS FOREIGNCURRENCY NEEDS THUS AVOIDING THE SWAP MARKETS AND IT FINANCES WORKING CAPITAL AND EXPANSION WITH THE MOUNTAIN OF LOCAL CURRENCY ABOUT 200 MILLION YUAN 35 MILLION AT THE OFFICIAL RATE THAT IT HAS ACCUMULATED IN CHINA IT HAS NO LONGTERM DEBT BUT EVEN VENTURES SUCH AS KONKA WOULD BE HIT IF CONSUMER SPENDING FALLS SHARPLY KONKA HAS FELT THE EFFECT OF CHINA'S MACROECONOMIC MACHINATIONS BEFORE IN MAY 1989 CHINA LEVIED A SPECIAL SALES TAX ON COLOR TELEVISION SETS AS PART OF ITS EFFORT TO SLOW CONSUMER SPENDING AFTER THE JUNE 1989 KILLINGS IN TIANANMEN SQUARE KONKA'S ORDERS BRIEFLY PLUNGED TO JUST 300 SETS A MONTH AT A LUNCHEON WITH INVESTMENT BANKERS FROM HONG KONG QUESTIONS ABOUT THE POSSIBILITY OF A NEW SALES TAX SEND THE FACTORY MANAGEMENT INTO A MOMENTARY UPROAR AT LEAST KONKA COULD EXPECT ITS CHINESE PARTNER TO LOBBY HARD ON ITS BEHALF CHINA TRAVEL SERVICE THROUGH VARIOUS SUBSIDIARIES OWNS 36 OF THE VENTURE WHICH IS LISTED ON THE SHENZHEN STOCK EXCHANGE MANY NEWER VENTURES WERE ESTABLISHED WITH FLIMSIER RELATIONSHIPS THOUGH AND SOME OF THESE MAY FIND THEMSELVES ON THEIR OWN THE BRANCH OF GITIC THAT ACTS AS FULLER'S PARTNER FOR EXAMPLE OWNS ONLY 5 OF THE VENTURE AND HASN'T BEEN ABLE TO HELP RESOLVE THE VENTURE'S HARDCURRENCY SQUEEZE FOR NOW HOWEVER THERE IS PLENTY OF OPTIMISM THAT THE RECENT BOOM IN SPENDING WILL CONTINUE WHILE THE GOVERNMENT HAS MADE A SHOW OF GETTING TOUGH SENDING TEAMS OF INSPECTORS OUT FROM THE CAPITAL TO THE COUNTRY'S HOT SPOTS IT INSISTS THAT ONLY PARTS OF THE ECONOMY WILL SLOW DOWN FULLER'S MR O'BRIEN SAYS JUNE AND JULY WERE THE VENTURE'S TWO BEST MONTHS EVER KONKA SAYS IT SOLD NEARLY AS MANY TV SETS IN CHINA IN THIS YEAR'S FIRST SIX MONTHS AS IT SOLD IN ALL OF 1992 DESPITE THIS YEAR'S 25 INCREASE IN DOMESTIC PRICES TO COMPENSATE FOR THE DEPRECIATION OF THE YUAN WHEN THE YUAN DEPRECIATES PEOPLE BUY MORE TO PROTECT THE VALUE OF THEIR MONEY SAYS CHAMBERS WONG VICE CHAIRMAN OF KONG WAH KONKA'S HONG KONG PARTNER AT THE JOINT VENTURE'S SHENZHEN FACTORY TRUCKS FROM NEIGHBORING PROVINCES WAIT IN THE PARKING LOT OFTEN OVERNIGHT FOR TV SETS THAT ARE LOADED WARM FROM THE PRODUCTION LINE KONKA ASSISTANT GENERAL MANAGER ZHANG MUMING LAUGHS OFF SUGGESTIONS THAT HIS PARKING LOT COULD SOON BE EMPTY ANY SLOWDOWN IN DEMAND WILL SIMPLY HELP US CATCH UP WITH OUR BACKLOG OF ORDERS HE SAYS MEANWHILE FULLER'S MR O'BRIEN IS TRYING TO BUY IMPORTED RAW MATERIALS WITH YUAN FROM LOCAL TRADING COMPANIES BECAUSE LOCALLY PRODUCED MATERIALS AREN'T UP TO FULLER'S STANDARDS WE HAVE TO BE MORE CREATIVE ABOUT BALANCING HARD CURRENCY HE SAYS BUT WE'RE NOT GOING TO COMPROMISE IN OTHER AREAS 9308130165 930813 FINANCING BUSINESS SAMSUNG ELECTRONICS AMERICA INC SAMSUNG ELECTRONICS AMERICA INC SAID IN RIDGEFIELD PARK NJ THAT IT WILL ISSUE COMMERCIAL PAPER IN THE US THIS MONTH UNDER A 200 MILLION PROGRAM BASED ON ITS OWN CREDIT RATING THE PROGRAM WILL BE GUARANTEED BY THE PARENT SAMSUNG ELECTRONICS CO OF KOREA WHICH MAKES CONSUMER ELECTRONIC GEAR COMPUTER PRODUCTS TELECOMMUNICATIONS EQUIPMENT AND SEMICONDUCTORS THE PROGRAM WILL TRADE THROUGH GOLDMAN SACHS & CO MERRILL LYNCH & CO LEHMAN BROTHERS INC AND CHEMICAL SECURITIES A UNIT OF CHEMICAL BANKING CORP 9308130164 930813 DRUG GIANTS ENTER ERA OF COOPERATION VENTURES SEEK FOOTHOLD IN NONPRESCRIPTION MARKET BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL WITH SO MANY BIG DRUG MAKERS CLAMORING FOR A PIECE OF THE OVERTHECOUNTER PHARMACEUTICAL MARKET STRANGE BEDFELLOWS WERE ALMOST CERTAIN STILL FEW WERE READY FOR THE LINKUP UNVEILED IN JULY BY WARNERLAMBERT INC OF THE US AND UK DRUG MAKERS WELLCOME PLC AND GLAXO HOLDINGS PLC UNDER A PAIR OF JOINT VENTURES HAMMERED OUT IN MONTHS OF BARGAINING WARNERLAMBERT AGREED TO POOL ITS NONPRESCRIPTION OPERATIONS WITH WELLCOME'S TO CREATE THE WORLD'S THIRDBIGGEST OVERTHECOUNTER DRUG COMPANY UNDER A SEPARATE VENTURE THE NEWLY FORMED WARNERWELLCOME CONSUMER HEALTH PRODUCTS AND GLAXO AGREED TO DEVELOP NONPRESCRIPTION VERSIONS OF GLAXO'S DRUGS INCLUDING ZANTAC AN ULCER DRUG THAT IS ONE OF WORLD'S TOPSELLING PRESCRIPTION MEDICINES TO MANY INDUSTRY EXECUTIVES THE MATCHMAKING UNDERSCORED HOW COMPETITIVE PRESSURES ARE STARTING TO SQUEEZE EVEN THE HIGHESTFLYING DRUG COMPANIES BUT THE ALLIANCES ALSO OFFERED AN UPBEAT PRECEDENT PHARMACEUTICAL BARONS ARE PREPARED TO SET ASIDE TRADITIONAL RIVALRIES IN FAVOR OF DEFT DEALMAKING WHEN OVERRIDING STRATEGIC GOALS ARE AT STAKE DUNCAN MOORE A LONDONBASED PHARMACEUTICAL ANALYST FOR MORGAN STANLEY & CO SAID YOU'VE GOT COMPANIES RECOGNIZING THAT CHANGE IS AFOOT AND THAT IT'S TIME TO THINK AND ACT STRATEGICALLY MOST ANALYSTS CONSIDER WELLCOME THE BIGGEST BENEFICIARY OF THE OVERTHECOUNTER SHUFFLE EXPANSION OF ITS NONPRESCRIPTION OPERATIONS PREFERABLY THROUGH A GLOBAL JOINT VENTURE HAS BEEN A KEY PART OF CHIEF EXECUTIVE JOHN ROBB'S OVERHAUL OF THE ONCESLEEPY RESEARCH POWERHOUSE THE VENTURE DEVELOPMENT IS MR ROBB SAYS ONE OF THOSE RARE THINGS WHERE YOU LOOK AT A SITUATION AND SAY GEE THIS IS GOOD NEWS FOR EVERYBODY' WE WERE TRYING TO PUT A VEHICLE TOGETHER TO MARKET THE WORLD'S EIGHTHBESTSELLING PRESCRIPTION DRUG WELLCOME'S ZOVIRAX IF AND WHEN IT'S CONVERTED TO OTC STATUS THEN WE WERE ADVISED THAT MAYBE THE SAME VEHICLE ALSO WILL BE RESPONSIBLE FOR CONVERTING THE WORLD'S BIGGEST PRESCRIPTION DRUG TO OTC EVEN BETTER NEWS THE VENTURES ARE STILL SUBJECT TO FINAL AGREEMENTS AND REGULATORY APPROVALS THE RISK OF CLOSER SCRUTINY FLARED ON WEDNESDAY WHEN THE EUROPEAN COMMUNITY COMMISSION DISCLOSED IT IS CONDUCTING AN ANTITRUST INQUIRY ON A SIMILAR OVERTHECOUNTER ALLIANCE BETWEEN NO 1 DRUG MAKER MERCK & CO AND JOHNSON & JOHNSON BUT MR ROBB SAYS HE REMAINS HIGHLY CONFIDENT THAT WE'LL CONSUMMATE THE AGREEMENT AND COMMENCE THE JOINT VENTURES BY JANUARY 1 FOR ALL MR ROBB'S STRESS ON PRESCRIPTION MEDICINE THE POTENTIAL SALES FROM OVERTHECOUNTER VERSIONS OF KEY DRUGS WAS SIMPLY TOO LUCRATIVE TO PASS UP WITH GOVERNMENTS AND OTHER HEALTHCARE PROVIDERS CRACKING DOWN ON DRUG PRICES DRUG MAKERS' ANNUAL SALES GROWTH IS EXPECTED TO SLOW TO 5 OR 10 IN THE 1990S ABOUT HALF THE RATE IN THE 1980S IRONICALLY THAT CRACKDOWN ON PRESCRIPTION DRUGS SEEMS CERTAIN TO SPUR SALES OF OVERTHECOUNTER PRODUCTS INDUSTRY ANALYSTS PREDICT GOVERNMENTS AROUND THE WORLD ARE EASING REGULATORY ATTITUDES TOWARD OVERTHECOUNTER VERSIONS OF MANY PRESCRIPTION DRUGS ATTEMPTING TO ENCOURAGE INCREASED SELFMEDICATION ANALYSTS PROJECT ABOUT 10 AVERAGE ANNUAL GROWTH FOR THE 12 BILLIONAYEAR US OVERTHECOUNTER MARKET IN THE COMING DECADE EVEN FASTER GROWTH IS LIKELY FOR EUROPE WHERE SELFMEDICATION IS STILL RELATIVELY UNCOMMON AND FREE MEDICINE IS OFTEN DOLED OUT BY STATE HEALTH SERVICES FEW PROSPECTIVE OVERTHECOUNTER SHIFTS APPROACH THE POTENTIAL OF ZOVIRAX WELLCOME'S FLAGSHIP ANTIVIRAL DRUG DESPITE PROJECTED 1993 SALES OF MORE THAN 600 MILLION 8823 MILLION ANALYSTS ESTIMATE ZOVIRAX'S MARKET PENETRATION REMAINS A MERE 15 OF POTENTIAL USERS ASSUMING WARNERWELLCOME CONSUMER PRODUCTS DOES OBTAIN REGULATORY APPROVALS IN EUROPE AND THE US MR ROBB PREDICTS ANNUAL SALES OF OVERTHECOUNTER ZOVIRAX COULD EASILY REACH 300 MILLION BASED ON 1992 SALES THAT WOULD VAULT WELLCOME'S DRUG TO SECOND PLACE BEHIND THE BIGGEST CURRENT OVERTHECOUNTER PRODUCT JOHNSON & JOHNSON'S PAIN RELIEVER TYLENOL WHICH PILED UP SALES OF 675 MILLION OF COURSE THE ALLIANCE WITH WARNERLAMBERT WILL DILUTE WELLCOME'S SHARE OF OVERTHECOUNTER ZOVIRAX PROFITS BUT REFLECTING BULLISH PROSPECTS FOR THE DRUG MR ROBB MANAGED TO SECURE A MAJORITY THOUGH STILL UNDISCLOSED SHARE OF OVERTHECOUNTER ZOVIRAX PROFIT FOR WELLCOME THE PARTNERS AGREED TO DIVIDE PROFIT FROM WARNERWELLCOME'S EUROPEAN OPERATIONS 5050 BUT WARNERLAMBERT POCKETS 70 OF PROFIT FROM COMBINED US OPERATIONS A NONPRESCRIPTION CREAM VERSION OF ZOVIRAX TO TREAT COLD SORES IS ALREADY AVAILABLE IN GERMANY DENMARK AND FINLAND PENDING AN ACT OF PARLIAMENT THE PRODUCT ALSO IS SET TO DEBUT IN BRITAIN WITHIN A FEW WEEKS IN THE US THE MAIN APPLICATION FOR OVERTHECOUNTER ZOVIRAX WILL BE GENITAL HERPES RATHER THAN COLD SORES WELLCOME OFFICIALS SAY WARNERWELLCOME WILL APPLY FOR OVERTHECOUNTER ZOVIRAX APPROVAL BY THE US FOOD AND DRUG ADMINISTRATION BY YEAREND MR ROBB HOPES TO HAVE APPROVAL BEFORE THE US PATENT ON PRESCRIPTION ZOVIRAX EXPIRES IN 1997 SOME DRUG INDUSTRY EXECUTIVES QUESTION EARLY INTRODUCTION OF CHEAPER OVERTHECOUNTER VERSIONS BECAUSE OF THE RISK OF CANNIBALIZING SALES OF THE MORE PROFITABLE PRESCRIPTION MEDICINES BUT MANY COMPANIES INCLUDING WELLCOME NOW CONSIDER OVERTHECOUNTER VERSIONS IMPORTANT PARTS OF THEIR DEFENSE AGAINST COMPETITION FROM GENERIC COPIES WHEN PATENTS LAPSE SUCH GENERIC COPIES NORMALLY SNATCH AS MUCH AS 70 OF AN ORIGINAL DRUG'S SALES WITHIN 18 MONTHS OF PATENT EXPIRATION IRONICALLY SLUGGISH NONPRESCRIPTION DEVELOPMENT LOOMS AS ONE OF THE BIGGEST HEADACHES WARNERWELLCOME FACES WITH ZANTAC GLAXO'S ULCER DRUG IN THE MEANTIME SMITHKLINE BEECHAM PLC RUSHED DEVELOPMENT OF A NONPRESCRIPTION VERSION OF ITS ULCER MEDICINE TAGAMET WHICH LOSES PATENT PROTECTION IN THE US NEXT YEAR THE NONPRESCRIPTION VERSION IS DESIGNED TO TREAT HEARTBURN NOT ULCERS SMITHKLINE'S APPLICATION FOR NONPRESCRIPTION TAGAMET IS NOW PENDING WITH THE FDA AND LAST MONTH THE UK'S COMMITTEE ON SAFETY OF MEDICINES GAVE THE PRODUCT CONDITIONAL APPROVAL TO TREAT HEARTBURN AND DYSPEPSIA SMITHKLINE EXPECTS FINAL UK CLEARANCE BY YEAREND WARNERWELLCOME BY CONTRAST WON'T BE READY TO SUBMIT ITS FDA APPLICATION FOR OVERTHECOUNTER ZANTAC UNTIL LATE NEXT YEAR AT THE EARLIEST MANY DOUBT THAT NONPRESCRIPTION ZANTAC WILL EVER MAKE UP FOR THE SLOW START 9308130163 930813 SMITH BARNEY BACKS OUT OF SERVICE PACT WITH LEHMAN ON STOCK ISSUES RESEARCH BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN A SURPRISE SHIFT NEWLY CREATED BROKERAGE GIANT SMITH BARNEY SHEARSON INC PULLED OUT OF A PACT THAT GAVE ITS CLIENTS ACCESS TO STOCK ISSUES AND RESEARCH BY LEHMAN BROTHERS INC THE MOVE BY SMITH BARNEY SHEARSON THE NATION'S SECONDLARGEST BROKERAGE FIRM MEANS THAT ITS FOUR MILLION CUSTOMERS WILL HAVE ACCESS TO FEWER NEW STOCKS AND OTHER PRODUCTS THAN THEY HAD EXPECTED LEHMAN BROTHERS HAS MORE THAN TWICE THE MARKET SHARE IN UNDERWRITING NEW STOCK ISSUES THAN DOES SMITH BARNEY SHEARSON AND HAS ONE OF WALL STREET'S MOST ENVIED STAFFS OF RESEARCH ANALYSTS THE DECISION BY THE PRIMERICA CORP UNIT DISCLOSED IN A LETTER TO SENIOR LEHMAN BROTHERS OFFICIALS REVERSES PART OF THE MERGER PACT THAT CREATED THE BROKERAGE FIRM IN MARCH UNDER THE MERGER ACCORD AMERICAN EXPRESS CO AGREED THAT ITS LEHMAN BROTHERS INVESTMENTBANKING AND TRADING UNIT WOULD PROVIDE RESEARCH AND NEW STOCK AND BOND ISSUES FOR AS LONG AS TWO YEARS TO SMITH BARNEY SHEARSON THE SERVICE AGREEMENT WHICH CONTAINED A CLAUSE ALLOWING SMITH BARNEY SHEARSON TO PULL OUT AT ANY TIME WAS AIMED AT PROVIDING PRODUCTS FOR THE NEW FIRM'S 11000 BROKERS TO SELL BUT SENIOR SMITH BARNEY SHEARSON OFFICIALS SAY THE ARRANGEMENT WASN'T WORKING OUT UNDERSCORING THE PITFALLS OF JOINT VENTURES AMONG BIG WALL STREET RIVALS THE SMITH BARNEY SHEARSON OFFICIALS SAY BATTLES ALREADY HAD ERUPTED OVER HOW MUCH STOCK WOULD BE ALLOCATED TO SMITH BARNEY SHEARSON BROKERS AND AT WHAT PRICE SAYS A SMITH BARNEY SHEARSON EXECUTIVE IT WAS LIKE A BAD MARRIAGE LEHMAN OFFICIALS PLAYED DOWN THE DISCORD WE FRANKLY HADN'T EVEN COME AT ANY POINT TO ANY VIOLENT DISAGREEMENT SAYS T ANTHONY BROOKS HEAD OF LEHMAN'S STOCKSYNDICATE DESK BUT WE WERE BOTH COMPETITORS AND IT WAS BOUND TO SURFACE SOMEWHERE ALONG THE LINE INDEED LEHMAN OFFICIALS SAID THEY WERE RELIEVED THAT THE AGREEMENT WAS BEING CUT AMERICAN EXPRESS OFFERED THE SERVICE AGREEMENT IN THE MERGER WITHOUT FIRST CONSULTING LEHMAN OFFICIALS PEOPLE FAMILIAR WITH THE MATTER SAID NOW LEHMAN IS FREE TO SELL ALL ITS NEW STOCK ISSUES ITSELF ALLOWING IT TO IMMEDIATELY CARVE OUT A NEW IDENTITY WITHOUT SHEARSON THE MOVE ALSO PAVES THE WAY FOR LEHMAN TO MORE QUICKLY BECOME AN INDEPENDENT FIRM ANALYSTS SAY BUT LEHMAN STILL FACES THE CHALLENGE OF DRUMMING UP NEW STOCK ISSUES WITHOUT A HUGE BROKERAGE WORK FORCE OF ITS OWN WE FEEL VERY CONFIDENT THAT THIS IS GOING TO HAVE A MINIMAL IMPACT ON OUR INVESTMENTBANKING DEPARTMENT MR BROOKS SAYS I DON'T THINK A MAJORITY OF OUR BUSINESS CAME IN HERE BECAUSE OF THE WIREHOUSE PART OF OUR DISTRIBUTION FOR SMITH BARNEY SHEARSON THE DECISION REPRESENTS A BID TO CONTROL ITS OWN DESTINY AS IT BEEFS UP A MEAGER INVESTMENTBANKING PRESENCE IN JUNE SMITH BARNEY SHEARSON NAMED ROBERT GREENHILL A VETERAN MORGAN STANLEY & CO INVESTMENT BANKER AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SIGNALING THE NEW FIRM'S PLUNGE INTO INVESTMENT BANKING CUTTING THE SERVICE AGREEMENT SUGGESTS THAT MR GREENHILL IS TRYING TO FLEX HIS INVESTMENTBANKING MUSCLES ANALYSTS SAY YET THE MOVE IS RISKY SMITH BARNEY WAS RANKED A LOWLY NINTH IN UNDERWRITING NEW STOCK ISSUES IN THIS YEAR'S FIRST HALF WITH A MARKET SHARE OF JUST 33 THAT'S FAR LESS THAN LEHMAN'S 72 MARKET SHARE ACCORDING TO SECURITIES DATA CO AND DESPITE ACTIVELY RECRUITING INVESTMENT BANKERS IN RECENT WEEKS THE NEW FIRM STILL HAS A LONG WAY TO GO BEFORE IT BECOMES A STOCKUNDERWRITING FORCE ANALYSTS SAY THE SERVICE ARRANGEMENT BETWEEN THE TWO FIRMS FORMALLY WILL BE SEVERED WITHIN 90 DAYS IT WILL COVER LEHMAN NEWSTOCK ISSUES STOCK RESEARCH AND OVERTHECOUNTER TRADING OPERATIONS THE ONLY PART OF THE AGREEMENT THAT WILL REMAIN IN PLACE REQUIRES LEHMAN TO PROVIDE NEW TAXABLEBOND ISSUES TO THE NEWLY CREATED FIRM BUT SMITH BARNEY SHEARSON EXPECTS TO CUT THAT PART OF THE ARRANGEMENT BEFORE DEC 31 AFTER THE FIRM BOLSTERS ITS BOND OPERATIONS PEOPLE FAMILIAR WITH THE MATTER SAY 9308130162 930813 ECONOMY EXXON CHIEF DEFIES PREVAILING VIEW AND SEES HIGHER OIL PRICES THIS YEAR BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL IRVING TEXAS THE WAY LEE R RAYMOND SEES IT WORLD OIL SUPPLIES ARE TIGHT AND PRICES SHOULD RISE THROUGH THE REST OF THE YEAR MR RAYMOND CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF EXXON CORP SAYS HE DOESN'T BELIEVE THE UNITED NATIONS WILL SOON GIVE IRAQ PERMISSION TO SELL OIL IN A MOVE THAT MANY THINK WOULD FLOOD THE MARKET AND SEND PRICES TUMBLING HE AGREES THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IS SELLING MORE BARRELS OF CRUDE THAN ITS QUOTAS ALLOW BUT THAT IT DOESN'T APPEAR TO OUR TRADERS THAT THERE'S A GLUT JUST THE OPPOSITE HE SAYS PRICES FOR CRUDE ON SOME TANKERS FROM THE MIDDLE EAST ARE RISING DEMAND AND THE BUILDING OF INVENTORIES AHEAD OF WINTER ARE SOAKING UP OPEC'S OVERPRODUCTION AND BY THE END OF THE YEAR OIL SUPPLIES COULD GET KIND OF SNUG IF THE NORMAL WINTER INCREASE IN ENERGY USE KICKS IN HE SAYS MR RAYMOND'S PRICE FORECAST RUNS CONTRARY TO CONVENTIONAL WISDOM JAMES MURCHIE AN OIL ANALYST AT SANFORD C BERNSTEIN & CO IN NEW YORK REFLECTS THE CONSENSUS VIEW WHEN HE SAYS THE THREAT OF IRAQ WILL KEEP OIL PRICES DISCIPLINED HE SAYS THAT FEW OIL TRADERS WILL TAKE THE RISK OF BETTING ON HIGHER PRICES WITH IRAQ LOOMING IN AN INTERVIEW MR RAYMOND TALKED ABOUT HIGHER OIL PRICES OUTLINED HIS COMPANY'S EXPLORATION STRATEGIES AND DEFENDED EXXON AGAINST CRITICISM THAT THE COMPANY'S SECONDQUARTER EARNINGS INCREASE WASN'T AS BIG AS OTHERS IN THE OIL INDUSTRY HE DENIED CHARGES THAT EXXON IS MOVING TOO SLOWLY TO DEVELOP FIELDS IN THE FORMER SOVIET UNION AND THAT THE COMPANY HAS SLASHED EXPENSES SO DEEPLY THAT THERE'S NOTHING LEFT TO CUT HE ALSO SAID THAT CONTRARY TO RECENT NEWS REPORTS FROM INDONESIA EXXON CONTINUES TO HOLD DISCUSSIONS WITH THE GOVERNMENT ON BUILDING A LIQUEFIED NATURALGAS PROJECT IN THE NATUNA ISLANDS THAT COULD COST MORE THAN 15 BILLION OVER FIVE YEARS TO DEVELOP IN THE SECOND QUARTER EXXON'S NET INCOME ROSE 33 TO 123 BILLION ON REVENUE OF 2793 BILLION NOT COUNTING ONETIME GAINS HOWEVER PROFIT ROSE 13 WHILE MANY OF THE OTHER OIL COMPANIES POSTED LARGER INCREASES UNLIKE EXXON MANY OTHERS INITIATED DRASTIC COSTCUTTING THAT HAD A QUICK IMPACT ON THE BOTTOM LINE THEY'RE MAKING A CORRECTION IN THEIR COST STRUCTURE AND EXXON HAD LESS TO CORRECT SAYS MR MURCHIE OF SANFORD C BERNSTEIN NONETHELESS BECAUSE OF EXXON'S STEADINESS WALL STREET ANALYSTS DON'T RECOMMEND THE STOCK FOR QUICK PRICE GAINS AS FREQUENTLY AS THEY DO OTHER OIL COMPANIES EXXON IS NEVER A SHORTTERM STOCK AND THE US INVESTMENT COMMUNITY IS SHORTTERM ORIENTED SAYS BRYAN JACOBOSKI OIL ANALYST AT PAINEWEBBER INC IN NEW YORK EXXON EXECUTIVES HAVE CONSTRUCTED THE COMPANY SO THAT NO SINGLE THING WHETHER IT BE THE SURGE IN US NATURAL GAS PRICES THIS YEAR OR WEAK EUROPEAN REFINING AND MARKETING MARGINS CAN DRAMATICALLY BOOST OR SHRINK EARNINGS QUICKLY FOR EXAMPLE THE GIANT SLEIPNER NATURAL GAS FIELD IN THE NORWEGIAN NORTH SEA WAS FIRST DISCOVERED IN 1973 HE SAYS WITH A CAPITAL COST OF 73 BILLION THE FIELD WILL BEGIN PRODUCTION THIS AUTUMN AND MR RAYMOND FIGURES MORE THAN HALF THE PEOPLE WHO WORKED ON IT HAVE RETIRED BY NOW THAT'S HOW THIS OUTFIT WORKS HE SAYS IF I LIVE LONG ENOUGH AND SOMEBODY DOESN'T RUN ME OFF AND I RETIRE IN 2003 THE 54YEAROLD ADDS ONE OF THE BIG PRODUCERS IS GOING TO BE SLEIPNER OTHER LARGE LONGTERM FIELD DEVELOPMENTS DUE TO BEGIN PRODUCING LATER THIS YEAR INCLUDE THE MOBILE BAY GAS FIELD OFF THE COAST OF ALABAMA AND THE POINT MCINTYRE OIL FIELD NORTH OF PRUDHOE BAY IN ALASKA THAT PAVES THE WAY FOR DEVELOPMENT OF ADDITIONAL RESERVES THAT CAN SHARE PRODUCTION FACILITIES THE RISE THIS YEAR IN US NATURAL GAS PRICES BOOSTED EXXON'S DOMESTIC EARNINGS AND WHILE SOME IN THE INDUSTRY SEE MORE RAPID INCREASES SHORTLY MR RAYMOND DOESN'T HE REFERRED TO A PHRASE USED AROUND EXXON EASY GLUM EASY GLOWTO PUT OTHERS' OPTIMISM IN PERSPECTIVE WE'RE KIND OF IN THE EASY GLOW' FOR NATURAL GAS PRICES HE SAYS WHICH CLIMBED ABOVE 2 PER THOUSAND CUBIC FEET THIS YEAR FROM A LOW LAST YEAR OF 1 A LITTLE OVER A YEAR AGO WE WERE IN THE EASY GLUM' PERIOD MR RAYMOND SAID 9308130161 930813 WHO'S NEWS WESTERN DIGITAL CORP WESTERN DIGITAL CORP IRVINE CALIF STEPHEN B SCHWARTZ WAS ELECTED A DIRECTOR INCREASING THE BOARD OF THIS MAKER OF DISK DRIVE PRODUCTS TO EIGHT MR SCHWARTZ 58 YEARS OLD IS A FORMER SENIOR VICE PRESIDENT OF INTERNATIONAL BUSINESS MACHINES CORP 9308130160 930813 RACIAL REVIEWS COURT RULING MAKES DISCRIMINATION STUDIES A HOT NEW INDUSTRY CITIES SEEKING TO SAFEGUARD MINORITY CONTRACTING LOOK FOR EVIDENCE OF BIAS MIAMI'S BATTLE OVER NUMBERS BY DOROTHY J GAITER STAFF REPORTER OF THE WALL STREET JOURNAL MIAMI WHEN THE CITY OF MIAMI HIRED A TEAM OF CONSULTANTS TO DETERMINE WHETHER IT DISCRIMINATED AGAINST MINORITYOWNED BUSINESSES IN CONTRACTING WORK THE RESEARCHERS REPORTED WHAT ARGUABLY WOULD BE GOOD NEWS THEY DIDN'T FIND A CLEAR PATTERN OF DISCRIMINATION TO JUSTIFY THE CITY'S DECADEOLD POLICY OF DIRECTING A PERCENTAGE OF ITS WORK TO MINORITIES BUT ANGRY CITY COMMISSIONERS REFUSED TO ACCEPT THAT CONCLUSION AN INCREDULOUS VICE MAYOR MILLER DAWKINS THE GROUP'S ONLY BLACK MEMBER RAILED AT THE STUNNED CONSULTANTS THE WHOLE PURPOSE OF THIS STUDY WAS FOR YOU TO PROVE THAT THERE WAS A DISPARITY IN MINORITY HIRING XAVIER SUAREZ THE CUBANBORN MAYOR SAID THE ANALYSIS BY THE HUGE ACCOUNTING FIRM KPMG PEAT MARWICK GAVE COMMISSIONERS A PAIN AND ADDED WE SHOULD NEVER HAVE DONE IT THE CITY'S REACTION IN HINDSIGHT WASN'T SO SURPRISING MIAMI LIKE A HUNDRED OTHER CITIES ACROSS THE COUNTRY FROM SAN FRANCISCO TO NEW YORK TOOK A FRESH LOOK AT ITS MINORITYCONTRACTING PROGRAMS NOT BECAUSE IT WANTED TO BUT BECAUSE IT SAW ITSELF FORCED INTO DOING SO BY A CONTROVERSIAL RULING THE SUPREME COURT HANDED DOWN IN 1989 A NEW STANDARD THE HIGH COURT'S SOCALLED CROSON DECISION WRITTEN BY JUSTICE SANDRA DAY O'CONNOR QUESTIONED THE CONSTITUTIONALITY OF STATE AND LOCAL GOVERNMENT PROGRAMS THAT SET ASIDE A PORTION OF CONTRACTS IN AN EFFORT TO HELP MINORITY BUSINESSES SUCH AFFIRMATIVEACTION PROGRAMS THE COURT SAID WERE OPEN TO CHALLENGE UNLESS CITIES COULD SHOW THAT THERE WAS A SIGNIFICANT STATISTICAL DISPARITY BETWEEN THE NUMBER OF MINORITY FIRMS AVAILABLE TO DO GOVERNMENT WORK AND THE NUMBER OF MINORITY FIRMS ACTUALLY HIRED TO DO IT AND THAT THE DISPARITY WAS CAUSED AT LEAST IN PART BY DISCRIMINATION THE 63 RULING WHICH INVOLVED THE CITY OF RICHMOND VA HAD TWO IMMEDIATE EFFECTS CITY GOVERNMENTS AND OTHER PUBLIC AGENCIES PANICKED FEARING THEY MIGHT HAVE TO CLOSE PROGRAMS SOME GOING BACK TO THE MID1970S THAT HAD BECOME THE LIFEBLOOD OF MINORITY FIRMS AND OVERNIGHT A NEW INDUSTRY SPRANG UP AS COMPANIES SMALL AND LARGE OFFERED TO CONDUCT STUDIES TO HELP CITIES DETERMINE WHETHER THEIR MINORITY PROGRAMS WOULD STAND SUCH SCRUTINY OR TO HELP CITIES THAT DIDN'T HAVE ONE DECIDE WHETHER ONE WAS NEEDED AS WAS THE CASE IN MIAMI THE STUDIES USUALLY COSTING SEVERAL HUNDRED THOUSAND DOLLARS EACH HAVE SOMETIMES YIELDED UNEXPECTED RESULTS MANY CITY OFFICIALS HAVE A VESTED INTEREST IN PRESERVING MINORITYCONTRACTING POLICIES EITHER BECAUSE THEY FEEL THEY ARE MORALLY JUSTIFIED OR BECAUSE THE PROGRAMS WERE ADOPTED AFTER INTENSE PRESSURE FROM INCREASINGLY POWERFUL MINORITIES THIS HAS PUT MANY CITIES IN THE CURIOUS POSITION OF WANTING THE STUDIES TO SHOW THAT THEY HAVE INDEED DISCRIMINATED AGAINST MINORITY COMPANIES BECAUSE THE CROSON DECISION AND THE STUDIES IT SPAWNED INVOLVE SUCH SENSITIVE ISSUES AS RACE POLITICS AND PUBLIC MONEY THEY HAVE TOUCHED OFF CONTROVERSIES ACROSS THE COUNTRY IN ATLANTA FOR EXAMPLE WHITE CONTRACTORS CHALLENGED THE MINORITY CONTRACTING PROGRAM AND A JUDGE ORDERED IT SUSPENDED THE CITY THEN CONDUCTED A DISPARITY STUDY WHOSE RESULTS ALLOWED IT TO RESUME THE PROGRAM IN A MODIFIED FORM IT HASN'T BEEN CHALLENGED SINCE FLORIDA'S PALM BEACH COUNTY ORDERED A STUDY AND WHEN IT BALKED AT ENACTING THE CONSULTANTS' RECOMMENDATION TO STRENGTHEN ITS MINORITY PROGRAM A BLACK CONTRACTORS' GROUP SUED IN 1991 WITHIN MONTHS THE COUNTY ADOPTED A REVAMPED PROGRAM BUT THE SUIT WASN'T SETTLED UNTIL THIS YEAR AFTER BLACKS WERE SATISFIED THAT THE POLICY WAS BEING ENFORCED ST PETERSBURG FLA DROPPED HISPANICS AND WOMEN FROM ITS CONTRACTING POLICY AFTER ITS DISPARITY STUDY SUGGESTED THAT BLACK COMPANIES WERE THE ONLY ONES NOT GETTING A FAIR SHARE OF CITY WORK BUT AFTER CONTRACTING WITH HISPANICS AND WOMEN BECAME VOLUNTARY THE AMOUNT OF CITY BUSINESS THEY RECEIVED FELL SIGNIFICANTLY AND THE CITY IS CONSIDERING REINSTATING MANDATORY CONTRACTING FOR ALL THREE GROUPS COMPETITION IS TOUGH IN THE DISPARITYSTUDY BUSINESS WHICH HAS COST MUNICIPALITIES AND GOVERNMENT AGENCIES ACROSS THE COUNTRY 30 MILLION SINCE THE CROSON RULING ACCORDING TO INDUSTRY OFFICIALS THE INDUSTRY LEADERS ARE DJ MILLER & ASSOCIATES INC OF ATLANTA A BLACKOWNED FIRM THAT HAS DONE 13 STUDIES NATIONAL ECONOMIC RESEARCH ASSOCIATES INC A WHITEOWNED FIRM IN CAMBRIDGE MASS WHICH ALSO HAS DONE 13 AND MGT OF AMERICA INC A WHITEOWNED COMPANY BASED IN TALLAHASSEE FLA WHICH HAS DONE NINE COOPERS & LYBRAND THE ACCOUNTING FIRM WHICH DID A STUDY FOR THE STATE OF MARYLAND HAS SINCE GOTTEN OUT OF THE BUSINESS THE STUDIES THEMSELVES ARE COMPLEX GENERALLY CONSISTING OF TWO PARTS A TEDIOUS STATISTICAL SECTION IN WHICH NUMBERS ARE TRACKED DOWN AND CRUNCHED AND AN ANECDOTAL PART WHICH CONSISTS OF INTERVIEWS WITH MINORITIES WHITES MEN AND WOMEN IN BUSINESS AND THE CONTRACTING OFFICIALS THEY DEAL WITH SOME CONSULTANTS USE SECRET NUMERICAL FORMULAS OTHERS USE A BATTERY OF EXPERTS FROM HISTORIANS TO SOCIOLOGISTS BECAUSE THE SUPREME COURT HAS YET TO TAKE UP A CASE INVOLVING A PROGRAM BASED ON A DISPARITY STUDY AND HASN'T BEEN SPECIFIC ABOUT THE CIRCUMSTANCES THAT WOULD CALL FOR RACECONSCIOUS CONTRACTINGCONSULTANTS AREN'T SURE WHAT ULTIMATELY WILL PASS LEGAL MUSTER MIAMI IS A GOOD EXAMPLE OF THE DIFFICULTY OF DOING DISPARITY STUDIES THE POLITICKING SURROUNDING THE AWARDING OF THESE CONTRACTS AND THE FALLOUT THAT RESEARCHERS CAN ENCOUNTER WHEN THEY FAIL TO MEET THEIR CLIENT'S EXPECTATIONS THE MIAMI CITY STAFF INITIALLY HAD BUDGETED 200000 FOR A DISPARITY STUDY THEY NOW SAY THEY AREN'T SURE OF THE DETAILS OF WHAT HAPPENED BUT EVENTUALLY THE BUDGET WAS SLICED TO 125000 OF 14 COMPANIES THAT SOUGHT THE CONTRACT THE CITY STAFF RECOMMENDED ATLANTA'S DJ MILLER AT A MAY 1990 MEETING TO AUTHORIZE THE CONTRACT WITH DJ MILLER COMMISSIONERS FURTHER KNOCKED THE PRICE TO 100000 AND QUESTIONED THE COMPANY'S QUALIFICATIONS OPENING THE DOOR FOR PEAT MARWICK TO MAKE A PITCH FOR THE CONTRACT EVENTUALLY THE PEAT MARWICK TEAM PREVAILED A PRINCIPAL OF PEAT MARWICK WHO HAS SINCE LEFT HANDLED THE NEGOTIATIONS SAYING IT COULD DO THE STUDY WITH MORE LOCAL INPUT FOR 100000 AND WOULD ABSORB ANY EXTRA COST FOR THE OPPORTUNITY TO DO IT DAVE J MILLER PRESIDENT OF DJ MILLER CALLS THE EXPERIENCE IN MIAMI ONE OF THE WORST EPISODES IN THE COMPANY'S EXISTENCE HE BELIEVES THE FACT THAT HIS COMPANY IS BLACKOWNED PLAYED A ROLE IN NOT GETTING THE CONTRACT THE COUNCIL LOOKED AT WHO WE WERE AND DECIDED THAT THE MONEY WAS TOO MUCH FOR SOMEONE WHO LOOKED LIKE US HE CHARGES THEIR BEHAVIOR WAS THE EPITOME OF THE THINGS THAT THEY WANTED US TO STUDY MR DAWKINS THE SOLE BLACK MIAMI COMMISSIONER COMPLAINED TO HIS PEERS IT'S ONLY WHEN WE GET TO DEALING WITH THE ISSUES THAT ARE CLOSE TO BLACK FOLKS THAT WE START WORRYING ABOUT HOW MUCH MONEY WE'RE SPENDING ADRIENNE MCBETH THE CITY STAFF MEMBER WHO HANDLED THE PROPOSALS AND WHO FAVORED DJ MILLER SAYS WE FELT LIKE A BLACK FIRM WOULD HAVE HAD AN UNDERSTANDING THAT WOULD HAVE INFORMED THEIR WORK THEY HAD ALREADY DONE SEVERAL STUDIES THE WINNING TEAM WAS LED BY THE VIRGINIA UNIT OF PEAT MARWICK WHICH HAD WORKED AS SUBCONTRACTORS ON TWO STUDIES ONE OF THEM FOR THE STATE OF FLORIDA ON THE TEAM WERE ATTORNEYS FROM THE POWERFUL LOCAL LAW FIRM OF STEEL HECTOR & DAVIS WHICH HAD HELPED DRAFT THE STATE'S LAWS ON HELPING MINORITY CONTRACTORS FRANK SCRUGGS WHO LATER BECAME STATE SECRETARY OF LABOR WAS THE LOCAL BLACK REPRESENTATIVE ON THE TEAM SAYS ANN WHITTAKER DIRECTOR OF THE CITY'S MINORITY PROCUREMENT PROGRAM MR SCRUGGS FOR YEARS OUTSPOKEN ON ISSUES OF RACE AND THE JUDICIAL SYSTEM SAYS HE HELPED SHAPE THE PROJECT BUT SPENT MOST OF THE STUDY TIME IN TALLAHASSEE THE PROJECT'S MANAGER AARON ESTIS FROM PEAT MARWICK ALSO IS BLACK THE TEAM WAS ROUNDED OUT BY H FOX ASSOCIATES A SMALL CONSULTING FIRM OWNED BY HARRIET FOX WHO SUBCONTRACTED WITH KATHLEEN SHEA AN ASSISTANT PROFESSOR OF HIGHER EDUCATION AT THE UNIVERSITY OF MIAMI AND A SPECIALIST IN ORGANIZATION DEVELOPMENT BOTH WOMEN WHO ARE WHITE HAD CONDUCTED AN EARLIER STUDY ON MIAMI'S WOMENOWNED BUSINESSES MIAMI WHICH IS 62 HISPANIC HAS HAD SOME FORM OF ETHNICPREFERENCE CONTRACTING SINCE 1982 THE CURRENT PROGRAM WHICH HAS A GOAL OF AWARDING 51 OF ITS CONTRACTS TO BLACKS HISPANICS AND WOMEN AT 17 EACH WASN'T UNDER ATTACK WHEN THE STUDY WAS COMMISSIONED MS WHITTAKER SAYS THAT EVEN DURING THE PROGRAM'S BEST YEAR IN 1989 WHEN THE CITY HANDED OUT 36 MILLION IN CONTRACTS BLACKS RECEIVED ONLY 6 OF THE WORK AND WOMEN 3 WHILE HISPANICS GOT 31 IN JANUARY 1992 THE PEAT MARWICK TEAM REPORTED TO THE COMMISSION THAT IT HADN'T FOUND A SIGNIFICANT DISPARITY BETWEEN THE AVAILABILITY AND USE OF BLACK AND HISPANICOWNED FIRMS THAT COULD BE TRACED TO DISCRIMINATION TO JUSTIFY THE CITY'S PROGRAM BUT THEY DID FIND EVIDENCE THAT WARRANTED A PROGRAM FOR WOMEN FOR BLACK AND HISPANIC FIRMS THEY SUGGESTED RACENEUTRAL REMEDIES SUCH AS GIVING SPECIAL CONSIDERATION TO SMALL BUSINESSES OR LOCAL COMPANIES IN DISTRESSED AREAS IF THE CITY CHOSE TO CONTINUE A RACECONSCIOUS PROGRAM THE CONSULTANTS SUGGESTED IT SET SEPARATE GOALS FOR EACH GROUP CONSISTENT WITH THEIR AVAILABILITY SHATTERING THE POLITICALLY NEAT SYMMETRY OF THE 17 GOAL FOR EACH GROUP WHEN PEAT MARWICK GAVE THE COMMISSION THE RESULTS RECRIMINATIONS QUICKLY FOLLOWED VICE MAYOR DAWKINS COMPLAINED THAT THE STUDY WAS FLAWED BECAUSE THE CITY HAD DONE IT ON THE CHEAP WHETHER OR NOT THE BUDGETED AMOUNT WAS SUFFICIENT WHAT HAS BECOME CLEAR SINCE THE STUDY WAS DONE IS THAT PEAT MARWICK RAN INTO THREE PROBLEMS WHILE DOING THE RESEARCH THE FIRST TWO CONCERNED THE NUMBERS THE COMPANY HAD WORKED WITH THE THIRD WAS THE FACT THAT FEW MINORITY BUSINESSES PARTICIPATED IN HEARINGS SET UP TO GET ANECDOTAL MATERIAL ABOUT DISCRIMINATION ALL THREE PROBLEMS HAVE ALSO PLAGUED OTHER FIRMS THAT HAVE DONE DISPARITY STUDIES PEAT MARWICK WAS UNABLE TO FIND A YEAR IN WHICH IT COULD DIRECTLY COMPARE THE NUMBER OF MINORITY BUSINESSES TO THE AMOUNT OF WORK THEY GOT FROM THE CITY SAYS MR ESTIS THE PROJECT MANAGER IT HAD FIGURES FOR CITY USE OF MINORITY CONTRACTORS FOR 1983 '84 '86 '89 AND '90 BUT THE DATA IT GOT FOR THE NUMBER OF MINORITY BUSINESSES AVAILABLE TO DO CITY WORK WERE FROM 1982 AND 1987 BECAUSE THE TEAM HAD RUN OUT OF TIME AND MONEY BY THEN MR ESTIS SAYS IT COULDN'T GO BACK TO MATCH DATA FROM THE SAME YEARS NEVERTHELESS HE ARGUES IT MADE LITTLE DIFFERENCE WITH THE SMALL NUMBER OF BLACK FIRMS THAT WERE ACTUALLY IN DADE COUNTY AND WITH THE SMALL NUMBER OF TRANSACTIONS IN A GIVEN YEAR IT WAS ALMOST IMPOSSIBLE TO COME UP WITH SIGNIFICANTLY REALLY STRONG CONCLUSIONS DEFENSIBLE CONCLUSIONS ABOUT WHAT THE NUMBERS WERE SAYING HE SAYS ALSO PEAT MARWICK WAS NEVER ABLE TO GET RELIABLE DATA FROM THE YEARS BEFORE THE CITY HAD A MINORITYCONTRACTING POLICY SO THERE WAS NO WAY TO TELL IF THERE HAD BEEN DISPARITIES THAT WERE LATER REMEDIED BY THE CITY'S PROGRAM AND THAT MIGHT HAVE JUSTIFIED ITS EXISTENCE FOR REASONS THAT NEVER BECAME CLEAR PEAT MARWICK ALSO HAD LITTLE SUCCESS GETTING ANECDOTAL INFORMATION FROM MINORITY FIRMS ABOUT EXPERIENCES OF DISCRIMINATION A SURVEY IT SENT OUT TO 1425 BUSINESSES AND BUSINESS ORGANIZATIONS WHITE AND MINORITYOWNED GOT ONLY 176 RESPONSES WHEN PEAT MARWICK HELD PUBLIC HEARINGS TO GATHER TALES OF DISCRIMINATION FROM MINORITYBUSINESS OWNERS NO ONE SHOWED UP FOR THE FIRST ONE AND EIGHT PEOPLE ATTENDED THE SECOND MAYBE WE DIDN'T DO ENOUGH FRONTEND WORK SAYS MS FOX ONE OF THE TEAM MEMBERS SHE SUGGESTS THAT MINORITY BUSINESSES FAILED TO SHOW UP BECAUSE THEY HAD BEEN DISPARITYSTUDIED OUT TWO OTHER STUDIES HAD BEEN CONDUCTED NOT LONG BEFORE IN DADE COUNTY THERE IS ANOTHER POSSIBLE EXPLANATION THAT CONSULTANTS ARE STRUGGLING WITH NATIONWIDE THAT MINORITIES ARE AFRAID TO COMPLAIN FOR FEAR OF LOSING FUTURE WORK THE SUPREME COURT HAS PUT THESE MINORITY CONTRACTORS IN A HECK OF A BIND THEY'VE GOT TO DECIDE WHETHER TO SLIT THEIR OWN THROATS BY DISCLOSING PUBLICLY THE DISCRIMINATION THEY'VE ENDURED OR NOT DISCLOSING IT AND BEING UNABLE TO GET A REMEDY AS A RESULT SAYS FRANKLIN LEE CHIEF COUNSEL FOR THE MINORITY BUSINESS ENTERPRISE LEGAL DEFENSE AND EDUCATION FUND INC AN ADVOCACY GROUP IN WASHINGTON MR SCRUGGS FLORIDA'S FORMER LABOR SECRETARY ALSO BLAMES THE CROSON DECISION ITSELF FOR THE FINAL RESULTS OF THE MIAMI STUDY CROSON HE SAYS REQUIRED CONSULTANTS TO LOOK ONLY AT THE NUMBER OF MINORITIES ACTUALLY IN BUSINESS AND IT DIDN'T PERMIT THE STUDY TO GIVE WEIGHT TO THE POSSIBILITY THAT DISCRIMINATION MIGHT EXPLAIN WHY THERE WERE SO FEW OF THEM IN EXISTENCE IN THE FIRST PLACE GENERALIZED SOCIAL DISCRIMINATION BLANKETS OVER A MULTITUDE OF CIRCUMSTANCES THAT DO KEEP MINORITIES OUT OF THE ECONOMIC MAINSTREAM HE SAYS MAYOR SUAREZ SAYS HE IS FRUSTRATED AND DISAPPOINTED BY THE RESULTS OF THE STUDY WE FEEL INTRINSICALLY THAT WHATEVER WE'RE DOING ISN'T REACHING THE MINORITY POPULATION AND WE PRESUMED THAT THE STUDY WOULD VALIDATE THAT INTRINSIC FEELING I'D LIKE TO BELIEVE THAT IT WASN'T WELL DONE BECAUSE OF THE FINDINGS HE ADDS BUT I HAVE NO EVIDENCE THAT IT WASN'T AS CONSULTANTS ARE LEARNING ACROSS THE COUNTRY A STUDY THOUGHT TO HAVE BEEN BOTCHED CAN CAST A LONG SHADOW JOHN LUNN PROFESSOR OF SOCIAL POLICY AT HOPE COLLEGE IN HOLLAND MICH WHO IS WHITE WORKED ON A STUDY IN 1990 FOR THE STATE OF LOUISIANA AND DIDN'T FIND EVIDENCE OF DISCRIMINATION TO WARRANT A RACIAL CONTRACTING PROGRAM SOMETIMES WHEN I'M AROUND PEOPLE WHO SUPPORT SETASIDES HE SAYS THEY'LL SAY OH YOU'RE THE ONE WHO COULDN'T FIND DISCRIMINATION IN LOUISIANA' A SECOND BROADER STUDY DONE BY DJ MILLER AND MR LUNN FOUND EVIDENCE TO SUPPORT AN AFFIRMATIVEACTION PROGRAM AFTER THE MIAMI STUDY THE PEAT MARWICK TEAM BID ON DADE COUNTY'S STUDY ON HISPANIC AND WOMENOWNED BUSINESSES BUT FAILED TO GET THE 375000 CONTRACT GREG OWENS DIRECTOR OF DADE'S MINORITYBUSINESSDEVELOPMENT PROGRAM SAYS OTHER FACTORS CONTRIBUTED TO THE TEAM LOSING OUT BUT HE ADDS I HONESTLY CAN'T TELL YOU THAT THE MIAMI STUDY WASN'T A FACTOR PEAT MARWICK DID GET ANOTHER CONTRACT TO DO A DISPARITY STUDY ONE FOR 90000 FOR THE WEST COAST REGIONAL WATER SUPPLY AUTHORITY IN TAMPA THAT NO ONE ELSE WANTED IN TWO EFFORTS TO BID THE WORK PEAT MARWICK WAS THE ONLY CONTENDER ALTHOUGH THE MIAMI CITY COMMISSION ASKED ITS STAFF TO RETURN WITH PLANS FOR A STUDY TO AUGMENT THE PEAT MARWICK RESEARCH CITY MANAGER CESAR ODIO HAS YET TO ACT ON THAT REQUEST HE REFUSED TO COMMENT HE MIGHTN'T NEED TO CHARLES KLINE A LAWYER FOR A WHITE CONTRACTOR WHO SUCCESSFULLY SUED DADE COUNTY OVER AN EARLIER MINORITYCONTRACTING REQUIREMENT SAYS THE REASON NO ONE HAS SUED MIAMI'S PROGRAM IS THAT LEGAL CHALLENGES ARE EXPENSIVE AND THE POLITICAL PRICE ESPECIALLY IF YOU WIN IS TREMENDOUS SO WHILE LARGER COMPANIES ARE DIVIDING UP THE BIG CONSTRUCTION PROJECTS THAT FOLLOWED HURRICANE ANDREW'S DEVASTATION THE CITY HAS BEEN QUIETLY FINDING SMALLER CONTRACTING OPPORTUNITIES FOR MINORITIES AND PEAT MARWICK'S JOHN DIRENZO WHO OVERSAW THE MIAMI STUDY SAYS THAT WHILE THE COMPANY WILL CONTINUE TO BID ON DISPARITY STUDIES THAT IT THINKS IT HAS A GOOD CHANCE OF WINNING IT MAY BE THAT THE SMALL BOUTIQUE COMPANIES ARE MORE SUCCESSFUL 9308130159 930813 WHO'S NEWS ALLSTATE CORP ALLSTATE CORP NORTHBROOK ILL CHRISTOPHER F EDLEY PRESIDENT EMERITUS OF THE UNITED NEGRO COLLEGE FUND INC WAS ELECTED A DIRECTOR OF THIS INSURANCE COMPANY INCREASING THE BOARD TO EIGHT 9308130158 930813 SABENA'S CHAIRMAN RESIGNS STAYS ON IN UNUSUAL GAMBIT TO WIN WAGE CUTS BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS SABENA SA CHAIRMAN PIERRE GODFROID IS PLAYING A CURIOUS GAMBIT ONLY NINE DAYS AGO WORKERS VOTED TO REJECT MR GODFROID'S PLAN TO SLASH WAGES AS MUCH AS 15 THUS PROMPTING HIM TO OFFER HIS RESIGNATION FROM THE TOP SPOT AT BELGIUM'S NATIONAL AIRLINE THE BOARD ASKED HIM TO STAY ON UNTIL AUG 20 AND HE IS HOPING HIS RESIGNATION WILL GALVANIZE WORKERS INTO SUPPORTING A REVISED PROPOSAL THAT UNION OFFICIALS PROVISIONALLY ACCEPTED EARLY WEDNESDAY MR GODFROID IS SO CONFIDENT THE REVISED PLAN WILL BE ADOPTED THAT HE EXPECTS THE BOARD UNANIMOUSLY TO ASK HIM TO REMAIN LONG PAST AUG 20 AND HE DISMISSES REPORTS THAT HE HAS CLEANED OUT HIS DESK I WANT ONLY TO MAKE CLEAR THAT I AM STILL HERE HE SAYS MY PURPOSE IS TO REASSURE EVERYONE THERE IS STILL A PILOT IN THE PLANE THE SEEMING STAGEMANAGEMENT OF A RESIGNATION ILLUSTRATES THE SITUATION FACING MANY MANAGERS AT EUROPEAN AIRLINES AS THE INDUSTRY STRUGGLES TO COPE WITH THE FORCES OF RECESSION AND DEREGULATION CARRIERS MUST CUT COSTS AND STAFF LEVELS OR FACE EXTINCTION BUT TO DO SO MEANS TAKING EXTREME MEASURES TO OVERCOME ATTITUDES INGRAINED FROM PAST BETTER TIMES THAT COULD MAKE THEM INTO LUMBERING DINOSAURS MR GODFROID HIMSELF LISTS THOSE EUROPEAN AIRLINES CONFRONTING THE SAME PAINFUL CHOICES AIR FRANCE IBERIA AIR LINES OF SPAIN TAP AIR PORTUGAL OLYMPIC AIRWAYS OF GREECE AND IRELAND'S AER LINGUS SINCE COMING FROM CONTINENTAL FOODS CO A BELGIAN FOOD PROCESSOR OWNED BY CAMPBELL SOUP CO OF THE US MR GODFROID HAS HAD A STORMY STRIKEFILLED TENURE HE BEGAN THE JOB ONLY WEEKS BEFORE THE PERSIAN GULF WAR SENT THE INDUSTRY CRASHING INTO RECESSION AND HIS SUBSEQUENT EFFORTS TO SLASH COSTS AND CUT STAFF HAVE LED TO NUMEROUS CONFRONTATIONS WITH UNIONS PROTECTIVE OF THEIR MEMBERS' BENEFITS THE BIGGEST CAUSE OF CONFLICT BETWEEN MANAGEMENT AND THE WORKERS IS A COMPLETELY NEW MANAGEMENT STYLE SAYS JOHN GILBERT THE HEAD SABENA REPRESENTATIVE WITHIN THE SOCIALIST CGSP UNION IT'S A MODERN MANAGEMENT THAT WORKS WITH FIGURES AND STATISTICS THEY DON'T WORK WITH PEOPLE I FIND THEM A BIT RUDE REACHING THE LATEST WAGECUT PROPOSAL REQUIRED THE HELP OF A GOVERNMENTAPPOINTED CONCILIATOR UNDER THE PLAN SALARIES WILL BE CUT PROGRESIVELY FROM 25 TO AS MUCH AS 17SAVING 900 MILLION BELGIAN FRANCS 246 MILLION A YEAR IN ADDITION EMPLOYEES ARE ASKED TO TAKE FOUR UNPAID DAYS OF ABSENCE DURING A YEAR FOR ANOTHER 200 MILLION FRANCS IN SAVINGS FINALLY A COMMITTEE OF UNION OFFICIALS MANAGERS AND THE CONCILIATOR WILL LOOK FOR WAYS TO CUT AN EXTRA 300 MILLION FRANCS FROM SOCIAL COSTS ALTHOUGH DIFFERENT IN STRUCTURE FROM PREVIOUS PLANS MR GODFROID INSISTS THE NEW FORMULA WILL NOT DETRACT FROM HIS GOAL OF CUTTING 55 BILLION FRANCS A YEAR FROM SABENA'S SPENDING THE AIRLINE POSTED A LOSS OF ABOUT 15 BILLION FRANCS FOR THE FIRST HALF OF THE YEAR AND MR GODFROID SEES THE PLAN AS THE ONLY ROUTE OPEN TO SURVIVAL HE HAS ALSO BEGUN TO TALK TO THE UNIONS ABOUT MORE JOB CUTS A FURTHER TUNING OF OUR STRUCTURE MUST ENABLE US TO REDUCE OUR EMPLOYMENT BY 500 JOBS HE SAYS ADDING THAT UNIONS HAVE YET TO OBJECT TO THE GOAL BUT THE NEW PLAN DIFFERS FROM THE OLD IN ONE KEY MANNER THIS TIME THERE WILL BE NO REFERENDUM MR GODFROID SAYS MOST BUT NOT ALL OF THE UNIONS AGREED TO LET A COMMITTEE OF UNION REPRESENTATIVES MAKE A FINAL DECISION AFTER CONSULTING PRIVATELY WITH THEIR WORKERS GIVEN THE DELICATE RELATIONSHIP BETWEEN MANAGMENT AND LABOR THIS LESSCONFRONTATIONAL APPROACH MAY AVOID THE KIND OF STANDOFF THAT HAS BECOME COMMONPLACE AT SABENA EVEN AS THE AIRLINE WINS AWARDS FOR ITS IMPROVED SERVICE INCLUDING ONE FROM THE INTERNATIONAL AIRLINE PASSENGERS ASSOCIATION SOME IN THE AVIATION INDUSTRY FAMILIAR WITH SABENA LAMBASTE THE COMPANY FOR ITS INABILITY TO ADAPT TO THE NEW ENVIRONMENT THE MANAGEMENT IS ON CLOUD SEVEN WHILE THE COMPANY IS ON CLOUD FIVE OR SIX OR SOMETHING SAYS ONE INDUSTRY EXECUTIVE WHO REQUESTS ANONYMITY CARLOS VAN RAFELGHEM WOULD HAVE HAD THE WORKERS ON HIS SIDE THE OFFICIAL ADDS REFERING TO MR GODFROID'S PREDECESSOR IN FACT SOME UNION OFFICIALS ARE OPENLY HOSTILE TO MR GODFROID I DO NOT FIND HIM TO BE HONEST SAYS DENIS DEMAULAMAASTER SECRETARY OF THE SOCIALIST CMB UNION WHICH CLAIMS TO REPRESENT 2000 SABENA GROUNDCREW WORKERS BUT MR DEMAULAMAASTER STOPS SHORT OF BLAMING MR GODFROID FOR SABENA'S SITUATION THE MANAGEMENT IS NOT WORSE THAN BEFORE THE UNION OFFICIAL SAYS BUT THERE IS A VERY BIG CRISIS IN AVIATION AND THE MANAGEMENT IS NOW MORE ANTISOCIAL THEY WANT ANOTHER SITUATION OF WORKING THAT IS WORSE FOR THE WORKING CLASS OTHER INDUSTRY OFFICIALS SPREAD THE BLAME SAYING SABENA'S ENTIRE HIERARCHY AND STRUCTURE IS LEFT OVER FROM THE DAYS WHEN THE AIRLINE WAS RUN MUCH LIKE A BRANCH OF THE BELGIAN GOVERNMENT IT'S A VIEWPOINT MR GODFROID HIMSELF SEEMS INCLINED TO SUPPORT TO SOME DEGREE WE HAD TO DESTROY A HISTORICAL CULTURE BASED ON POLITICAL AND CYNICAL INFLUENCES MR GODFROID SAYS HE COMPLAINS THAT FOR 30 YEARS THE AIRLINE WAS RUN BY POLITICIANS AND INFLUENCE PEDDLERS AND ALTHOUGH THE STATE STILL OWNS 625 OF SABENA MR GODFROID INSISTS HE IS GIVEN FULL AUTONOMY TO RUN THE AIRLINE TODAY THE INFLUENCE OF THE POLITICIANS IS ZERO MR GODFROID CLAIMS BUT AS WE SAW IN THE REFERENDUM THERE ARE A LOT OF PEOPLE WHO ARE NOT AWARE OF THAT CHANGE A LOT OF PEOPLE STILL EXPECT THE STATE TO HELP THEY ARE NOT YET CONVINCED THAT WE ARE ALONE TO FACE OUR DIFFICULTIES THOSE DIFFICULTIES GO BEYOND A SIMPLE SLUMP IN DEMAND FOR AIRPLANE TICKETS AND A FARE WAR MR GODFROID ESTIMATES EUROPE'S CURRENCY CHAOS HAS COST HIS AIRLINE 15 BILLION FRANCS THIS YEAR POLITICAL UPHEAVAL IN CENTRAL EUROPE USUALLY ONE OF SABENA'S MOST PROFITABLE DESTINATIONS HAS COST THE BELGIAN AIRLINE ANOTHER 15 BILLION FRANCS IN REVENUES 9308130156 930813 WHO'S NEWS US HOMECARE CORP US HOMECARE CORP HARTSDALE NY CHARLES J HEIDEN WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS PROVIDER OF HOME HEALTHCARE SERVICES MR HEIDEN WHO HAD BEEN VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF LOWELL SHOE INC SUCCEEDS JONATHAN HIRST WHO LEFT THE COMPANY IN APRIL BUT WHO HAS ACTED AS A CONSULTANT 9308130155 930813 ECONOMY RISING FROM ASHES OF ITS BUST YEARS PHOENIX HOUSING MARKET SOARS AGAIN BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL PHOENIX THE GREATER PHOENIX REGION'S BIG HOUSING BUST HAS TURNED INTO A BOOM PROVING AS ONE BUILDER SAYS THAT THERE IS LIFE AFTER RECESSION EVEN FOR THE MOST DOWNANDOUT MARKET JUST THREE YEARS AGO HOUSING AROUND HERE WAS IN FULL RETREAT AFTER FOUR YEARS OF FRENETIC CONSTRUCTION SKIDDED TO A HALT ALMOST OVERNIGHT NOW HOUSING TRACTS ARE ONCE AGAIN POPPING UP ALL OVER THE OUTSKIRTS OF PHOENIX AS UNDERSTAFFED CONSTRUCTION CREWS WORK IN 110DEGREE HEAT TO TRY TO KEEP PACE WITH RENEWED DEMAND FUELED BY LOW INTEREST RATES AND AN INFLUX OF DISILLUSIONED CALIFORNIANS SINGLEFAMILY HOME PERMITS SOARED TO 10500 DURING THIS YEAR'S FIRST HALF NEARLY EQUALING THE PERFORMANCE FOR THE ENTIRE 1990 BUST YEAR AND ARE ON PACE TO REACH 20000 FOR THE FIRST TIME SINCE THE PEAK BOOM YEAR OF 1986 ACCORDING TO THE PHOENIX HOUSING MARKET LETTER MUNDS PARK ARIZ THE RESURGENCE OF THE VALLEY OF THE SUN ALONG WITH OTHER ONCEDEPRESSED HOUSING MARKETS SUCH AS TUCSON ARIZ AND DENVER DALLAS AND HOUSTON MAY BOLSTER HOPE FOR PLACES SUCH AS SOUTHERN CALIFORNIA AND NEW ENGLAND WHERE HOUSING REMAINS IN A DEEP FUNK PHOENIX AND THE OTHER SOUTHWESTERN CITIES PLUNGED INTO RECESSION DURING THE MID TO LATE1980S BEFORE THE COASTS DID AND SO HAVE HAD MORE TIME TO WORK THROUGH THE BOOMBUST CYCLE WHAT IS NOTEWORTHY FOR PHOENIX AND MANY OF THE OTHER RECOVERING MARKETS IN THE SOUTHWEST IS THAT THEIR HOUSING REVIVALS COME WITHOUT THE KIND OF JOB GROWTH THAT IS FUELING ROBUST ACTIVITY ELSEWHERE IN LAS VEGAS FOR INSTANCE HOUSING'S HEALTH RELIES ON 38 ANNUAL EMPLOYMENT GROWTH WHILE PHOENIX'S EMPLOYMENT IS GROWING AT AN UNEXCITING 18 REPORTS REGIONAL FINANCIAL ASSOCIATES INC A WEST CHESTER PA CONSULTING FIRM BUT PHOENIX PROVES THAT THE COMBINATION OF REDUCED PRICES AND INTEREST RATES AT A 22YEAR LOW IS ENOUGH TO IGNITE A BOOM AS LONG AS A MODEST JOB RECOVERY IS UNDER WAY THE ARITHMETIC IS IRRESISTIBLE BILL VAN WYCK A DIVORCED PHOENIX MAN SAYS HE IS ON A WAITING LIST FOR A 61000 HOME ON WHICH THE MONTHLY MORTGAGE OF 407 INCLUDING TAXES WOULD BE FAR CHEAPER THAN HIS CURRENT MONTHLY RENT OF 556 WITHOUT THE HASSLE OF A LANDLORD I HAVE NEVER ENJOYED PAYING RENT SAYS THE 47YEAROLD MANAGER OF A PRIVATE TECHNICAL SCHOOL I DON'T FEEL I'M GETTING ANY VALUE INDEED PHOENIX HOME BROCHURES ARE FILLED WITH ADS THAT SCREAM CHEAPER THAN RENT AND WHY ARE YOU STILL RENTING AT WATT HANCOCK HOMES' NEWLY OPENED ADOBE MOUNTAIN ESTATES A SUBDIVISION OF 61000TO88000 HOMES ON THE DUSTY NORTHERN OUTSKIRTS OF TOWN SOME 2000 WOULDBE HOMEOWNERS BESIEGED SALES AGENTS ON THE OPENING WEEKEND YOU COULDN'T EVEN MOVE IN THIS OFFICE SAYS SALES AGENT JERRY LILLY MR LILLY REMEMBERS TRYING TO PEDDLE HOMES DURING THE NOTSOLONGAGO BUST THERE WOULD BE DAYS WHEN YOU WOULD FOLLOW PEOPLE OUT TO THE PARKING LOT AT ADOBE MOUNTAIN WATT HANCOCK A DIVISION OF A HANSON PLC UNIT HAS SOLD 45 HOMES A WEEK SINCE THE SUBDIVISION'S OPENING DESPITE A ROUND OF PRICE INCREASES DESIGNED TO SLOW DEMAND TO WHAT THE BUILDER COULD HANDLE IN THE WEEKS BEFORE THE OPENING HOMES WERE PRESELLING SIGHT UNSEEN OFF BLUEPRINTS IN A MOBILEHOME SALES OFFICE WE COULDN'T EVEN QUOTE THEM A PRICE AND THEY WOULD BE BUYING SAYS GALYN ARTHUR ANOTHER SALES AGENT THERE NOW WATT HANCOCK HAS SET UP A WAITING LIST WHICH INCLUDES MR VAN WYCK SO IT CAN KEEP UP WITH ORDERS FOR BUILDERS WHO SURVIVED THE BUST THESE ARE GLORIOUS IF HARRIED TIMES RL BROWN PUBLISHER OF THE PHOENIX HOUSING MARKET LETTER SAYS BUILDER PROFITS ARE SKYROCKETING BECAUSE MANY BOUGHT LAND WHEN VALUES FELL AND VALUES ARE RISING AGAIN I THINK THE HOUSING RECOVERY HAS EXCEEDED ANYBODY'S EXPECTATION ESPECIALLY IN LIGHT OF THE FACT OUR ECONOMY IS NOT THAT ROBUST MR BROWN SAYS SHEA HOMES A WALNUT CALIF BUILDER WITH OPERATIONS IN ARIZONA SAYS IT EXPECTS TO SELL 1300 HOMES IN THE PHOENIX AREA THIS YEAR UP 46 FROM LAST YEAR FULTON HOMES SAYS IT EXPECTS TO SELL 600 HOMES THIS YEAR A 31 INCREASE AND UDC HOMES INC TEMPE ARIZ SAYS IT SOLD 1054 HOMES THROUGH JULY UP 15 FROM THE SAME PERIOD A YEAR EARLIER IT'S GOOD TO BE A HOME BUILDER AGAIN SAYS RICHARD C KRAEMER PRESIDENT AND CHIEF OPERATING OFFICER OF UDC WHICH ALSO BUILDS IN CALIFORNIA AND OTHER PARTS OF THE COUNTRY BUT BUILDERS ARE UNABLE TO FULLY SAVOR THE RESURGENCE BECAUSE STRONG DEMAND COINCIDING WITH A SHORTGAGE OF LABOR IS CAUSING CONSTRUCTION DELAYS OF AS LONG AS ONE MONTH JIM YOUNGER PRESIDENT OF YOUNGER BROTHERS A BIG FRAMING CONTRACTOR SAYS HE NEEDS AS MANY AS 100 MORE PEOPLE ON HIS WORK FORCE OF ABOUT 350 BUT IS HAVING TROUBLE RCRUITING BECAUSE SO MANY CONSTRUCTION WORKERS LEFT TOWN AFTER THE BUST NOW HE IS ADVERTISING IN CALIFORNIA NOT ALL BUILDERS ARE BENEFITING EQUALLY ALTHOUGH THERE ARE MORE THAN 300 BUILDERS IN THE MARKET THE TOP 10 DOMINATE MORE THAN HALF OF THE BUSINESS MANY OF THE BIGGEST BUILDERS LIKE UDC ARE PUBLICLY HELD CORPORATIONS WITH CAPITAL TO BUY AND DEVELOP LAND WHILE BANK LENDING IS STILL SO RESTRICTIVE THAT SMALL BUILDERS HAVE A TOUGH TIME GETTING FINANCING SO PHOENIX IS RUNNING INTO A SHORTAGE OF LOTS THAT ARE DEVELOPED AND READY FOR BUILDING THIS SHORTAGE COMBINED WITH INCREASED DEMAND AND COST OF MATERIALS LIKE LUMBER IS PUSHING PRICES UP UDC FOR EXAMPLE HAS INCREASED ITS SALES PRICE 5 TO 7 OVER THE PAST YEAR A SUDDEN SPIKE IN INTEREST RATES COULD ALSO SPOIL THE PARTY BECAUSE THIS IS STILL A SHAKY ECONOMY EVEN IF RATES STAY LOW HISTORY COULD WELL REPEAT ITSELF AND THE MARKET COULD BUST AGAIN PHOENIX IS A TOWN OF BOOMS AND BUSTS BECAUSE POSTWAR POPULATION GROWTH HAS DRAWN BUILDERS WHO TEND TO EITHER OVERBUILD OR OVERSTOCK ON LOTS MY HOPE IS THAT EVERYONE WILL KEEP THEIR EYES OPEN SAYS GARTH WIEGER PRESIDENT OF SHEA'S PHOENIX OPERATIONS IT'S EASY TO FORGET WHAT HAPPENED 9308130154 930813 INTERNATIONAL FERRUZZI STOCK HAS ROLLERCOASTER DAY FOLLOWING WRITEDOWN ANNOUNCEMENT BY MAUREEN KLINE STAFF REPORTER OF THE WALL STREET JOURNAL MILAN RESUMING TRADING AFTER A TWODAY SUSPENSION FERRUZZI FINANZIARIA SPA SHARES INITIALLY PLUMMETED 76 IN PRICE AS INVESTORS REACTED TO THE COMPANY'S EARLIER ANNOUNCEMENT THAT IT WAS WRITING DOWN ITS SHARE CAPITAL BY 85 BUT THE SHARES REBOUNDED ENDING THE DAY DOWN ONLY 46 AFTER A ROLLERCOASTER RIDE AS TRADERS APPARENTLY SPECULATED ON WHAT COULD BE SALVAGED IN THE DOWNFALL OF THE GIANT AGROINDUSTRIAL CONGLOMERATE ON TUESDAY THE COMPANY SAID IT WOULD WRITE DOWN ITS SHARE CAPITAL TO A MERE 205 BILLION LIRE 1266 MILLION FROM 1370 TRILLION LIRE SLASHING PAR VALUE OF EACH ORDINARY SHARE TO FIVE LIRE FROM 1000 LIRE SOCALLED SAVINGS SHARES WERE UNTOUCHED BUT THE ANNOUNCEMENT LEFT INVESTORS IN THE DARK AS TO THE COMPANY'S NEXT MOVES CREDITOR BANKS NOW IN CONTROL OF FERRUZZI SAID ONLY THAT THEY WOULD ANNOUNCE DETAILS OF A RESTRUCTURING PLAN IN MIDSEPTEMBER IT TOOK ABOUT AN HOUR FOR TRADING IN THE STOCK TO GET STARTED AS A STUNNED MARKET TRIED TO WEIGH THE IMPLICATIONS OF THE COMPANY'S CAPITAL WRITEDOWN THE INITIAL TRADING YESTERDAY SAW THE STOCK DIVE TO 101 LIRE SIX CENTS FROM 4178 LIRE MONDAY AS DISILLUSIONED INVESTORS BAILED OUT ANALYSTS SAID BUT THEN SPECULATORS SAW A CHANCE TO MAKE A QUICK PROFIT TRADERS SAID FERRUZZI SHARES BOUNCED BACK TO 300 LIRE AT THE END OF THE SESSION THE SHARES CLOSED AT 22440 LIRE THE OFFICIAL CLOSING PRICE IS THE WEIGHTED AVERAGE OF THE DAY'S PRICES THE HUGE PRICE MOVEMENTS WERE POSSIBLE BECAUSE THE STOCKMARKET WATCHDOG AGENCY CONSOB HAD EFFECTIVELY REMOVED RESTRICTIONS ON FERRUZZI STOCK FLUCTUATIONS ONE HUNDRED AND ONE LIRE WAS PANIC SELLING SAID ONE STOCKBROKER BUT 300 WAS TOO HIGH THE PRICE OF 101 LIRE STILL WAY ABOVE THE STOCK'S PAR VALUE OF FIVE LIRE WAS TOO LOW ANALYSTS SAID BECAUSE THE GROUP OF CREDITOR BANKS HAS EVERY REASON TO SAVE THE COMPANY THE BANKS ARE EXPECTED TO SELL OFF GROUP ASSETS WHICH RANGE FROM CHEMICAL COMPANIES TO FOOD CONCERNS TO INSURANCE FIRMS OR INJECT FRESH CAPITAL OR POSSIBLY REGROUP THE COMPANY IN A WAY THAT COULD BRING GAINS TO MINORITY SHAREHOLDERS BUT 300 LIRE WAS TOO HIGH ANALYSTS SAID BECAUSE THE COMPANY IS SO HIGHLY INDEBTED THAT ITS WORTH SHOULDN'T BE OVERESTIMATED FERRUZZI SAID ITS TOTAL DEBT AS OF THE END OF MAY WAS 178 BILLION AND THE AMOUNT OF NEW LOSSES ANNOUNCED TUESDAY AN UNEXPECTED EXTRA 640 BILLION LIRE FOR THE FIRST FIVE MONTHS OF 1993 WAS GREATER THAN THE TOTAL CAPITALIZATION OF FERRUZZI FINANZIARIA ON TUESDAY FERRUZZI'S AGROINDUSTRIAL AND CHEMICAL SUBSIDIARY MONTEDISON SPA WHICH ALSO RESUMED TRADING HAD A LESS ROCKY RIDE ENDING TRADING AT 702 LIRE COMPARED WITH 76940 LIRE ON MONDAY ANALYSTS SAID MONTEDISON IS TRADING MORE ON FUNDAMENTALS THAN ITS PARENT COMPANY AS ALONG WITH SOME VALUABLE ASSETS IT HAS A GOOD OPERATING PERFORMANCE 9308130153 930813 TECHNOLOGY COMPAQ IS REVAMPING ITS PRINTER LINE ANALYSTS EXPECT BUSINESS TO INCUR LOSS BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL COMPAQ COMPUTER CORP WHICH A YEAR AGO LAUNCHED AN AMBITIOUS EFFORT TO GRAB PRINTER BUSINESS FROM MARKET LEADER HEWLETTPACKARD CO HAS SHELVED SOME OF ITS NEW PRINTER PRODUCTS AND IS SCRAMBLING TO REVAMP THE PRODUCT LINE THE SHAKEUP AT THE HOUSTON PERSONALCOMPUTER MAKER COMES AMID ANALYST PREDICTIONS THAT COMPAQ'S PRINTER BUSINESS COULD LOSE AS MUCH AS 10 MILLION THIS YEAR COMPAQ WHICH WAS ON A ROLL AFTER THE SUCCESSFUL INTRODUCTION OF ITS PROLINEA LINE OF LOWPRICED COMPUTERS LAST YEAR HAD HIGH EXPECTATIONS FOR ITS ENTRY INTO THE PRINTER MARKET IN AUGUST 1992 BUT WHILE INDUSTRY OBSERVERS INITIALLY PRAISED THE TECHNICAL FEATURES OF COMPAQ'S FIRST PRINTERS AIMED AT SERVING THE GROWING PC NETWORKING MARKET THEY SAY THE OPERATION NOW APPEARS TO BE LISTING WITH NO NEW PRODUCTS UNVEILED IN THE PAST YEAR AND NONE EXPECTED UNTIL 1994 THE FEELING I GET IS THAT THEY ARE IN A STATE OF CHAOS RIGHT NOW SAID PAULA BURSLEY AN INDUSTRY ANALYST AT DATAQUEST INC A SAN JOSE CALIF MARKET RESEARCH CONCERN I'M SURE THEIR EXPECTATIONS WERE TO TAKE OVER THEIR SEGMENT OF THE MARKET I DON'T THINK IT WORKED OUT THAT WAY INDEED CONFUSION OVER THE STATUS OF COMPAQ'S PRINTER OPERATIONS BASED IN PART ON REPORTS IN THE TRADE PUBLICATIONS PC WEEK AND HARD COPY OBSERVER HAS PROMPTED SPECULATION DENIED BY THE COMPANY THAT COMPAQ MAY ABANDON THE PRINTER BUSINESS ENTIRELY WE ARE NOT PLANNING TO DISSOLVE THE DIVISION SAID BOB BEACH A COMPANY SPOKESMAN HE DID SAY COMPAQ IS RELOOKING AT OUR PRIORITIES AND OUR PRODUCT PLANS BUT DECLINED TO PROVIDE FURTHER DETAILS NOR WOULD HE COMMENT ON PREDICTIONS THAT THE PRINTER DIVISION WOULD LOSE MONEY IN 1993 ANALYSTS PEG THE PROJECTED LOSS TO THE COST OF KILLING SEVERAL NEW PRODUCTS SLATED FOR RELEASE IN THE SPRING AND SUMMER INCLUDING A COLOR PRINTER AND PORTABLE AND DESKTOP MODELS THE PRODUCTS WERE SHELVED FOLLOWING THE FIRING IN FEBRUARY OF DAVID BLACK FORMERLY THE GENERAL MANAGER OF COMPAQ'S PERIPHERALS DIVISION MR BLACK IN AN INTERVIEW SAID HE WAS FIRED BECAUSE HE WAS PUSHING THOSE PRODUCTS AS PART OF A LARGER PLAN TO BROADEN COMPAQ'S PRINTER LINE TO INCLUDE 300 PERSONAL PRINTERS AS WELL AS THE 3000 HIGHEND SYSTEMS THAT ALREADY WERE IN THE COMPANY'S LINE WE WANTED TO HAVE A COMPAQ PRINTER FOR ANYBODY WHO WANTED TO HAVE A COMPAQ PC HE SAID MR BLACK SAID THE IDEA WAS SHELVED THOUGH BECAUSE OF WORRIES THAT LOWEND PRODUCTS WOULD PUT FURTHER PRESSURE ON COMPAQ'S MARGINS ALREADY UNDER ATTACK BY A COMPUTER PRICE WAR STARTED BY THE COMPANY IN JUNE 1992 COMPAQ OFFICIALS WOULDN'T COMMENT ON MR BLACK'S FIRING BUT THEY NOW SAY THEY ARE RECONSIDERING THE IDEA OF A BROAD PRINTER LINE THOUGH THEY NOTE THAT THE PRODUCTS IN THE UPCOMING LINE WILL BE DESIGNED WITH RICHER FEATURES THAN THOSE ENVISIONED BY MR BLACK WHATEVER COMPAQ'S PLANS FOR REJUVENATING THE BUSINESS ANALYSTS SAY THEY CAN'T COME SOON ENOUGH THOUGH THE COMPANY MADE AN IMPRESSIVE EARLY SHOWING WITH ITS FIRST PRODUCTS GARNERING BETWEEN 10 AND 15 OF ITS 800 MILLION MARKET NICHE COMPAQ REMAINS A DISTANT SECOND TO HEWLETTPACKARD WHICH BOASTS A 68 SHARE AND INDUSTRY WATCHERS NOW FEAR THAT COMPAQ IS IN DANGER OF LOSING ITS EARLY MOMENTUM HAVING FAILED TO INTRODUCE NEW PRODUCTS EVEN AS HEWLETTPACKARD AND INTERNATIONAL BUSINESS MACHINES CORP'S LEXMARK INTERNATIONAL INC UNIT HAVE UNVEILED NEW MACHINES AIMED DIRECTLY AT COMPAQ'S NETWORKING MARKET THEY ARE ALREADY IN A PRETTY FIERCE BATTLE IN THE PC WORLD SAID RICHARD ZWETCHKENBAUM AN ANALYST AT INTERNATIONAL DATA CORP CAN COMPAQ COMPETE EFFECTIVELY IN THE PRINTER BUSINESS THAT'S THE QUESTION AT HEWLETTPACKARD MEANTIME NOBODY'S COUNTING COMPAQ OUT OFFICIALS THERE SAY THEY EXPECT COMPAQ TO STAY IN THE PRINTER BUSINESS BUT PERHAPS WITH DIFFERENT EXPECTATIONS ABOUT WHAT IT WILL TAKE TO UNSEAT THE INDUSTRY LEADER IT'S DIFFICULT FOR A NEW COMPANY TO COME ONTO A FORTIFIED HILL SAID RICHARD BELLUZZO GENERAL MANAGER OF THE HEWLETTPACKARD HARD COPY PRODUCTS GROUP THEY DON'T HAVE THE BRAND RECOGNITION IN PRINTERS I DON'T KNOW HOW MANY BATTLES A COMPANY CAN FIGHT IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY COMPAQ SHARES JUMPED 1125 TO 5375 9308130152 930813 MARKETING & MEDIA CHRYSLER ADDS LUXE TO COMMERCIALS FOR NEW PICKUPS BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT CHRYSLER CORP NEXT MONTH WILL LAUNCH ITS NEW DODGE RAM PICKUP WITH AN ADVERTISING CAMPAIGN THAT BREAKS MOST OF THE RULES FOR SELLING PICKUPS INSTEAD OF ROCK MUSIC OR SCENES OF TRUCKS CAREENING THROUGH MUD CHRYSLER WILL SEND OFF ITS FIRST NEW LARGE PICKUP IN TWO DECADES WITH ADVERTISEMENTS FIT FOR A LUXURY CAR THESE ARE NOT GOING TO BE TRUCK COMMERCIALS AS EVERYONE KNOWS THEM OTHERWISE WE WERE GOING TO BE BURIED SAID RICHARD A JOHNSON CHIEF CREATIVE OFFICER IN DETROIT FOR OMNICOM GROUP'S BBDO WHICH HANDLES THE DODGE ACCOUNT CHRYSLER SAID ADVERTISING FOR THE RAM LAUNCH WILL BE MORE COSTLY THAN LAST FALL'S INTRODUCTION OF THE DODGE INTREPID FAMILY SEDAN AND WILL SUBSTANTIALLY INCREASE OVERALL AD SPENDING FOR THE YEAR CHRYSLER DOESN'T HAVE MUCH TO LOSE BY TAKING CHANCES IT'S BECOME ALMOST A NONENTITY IN THE FULLSIZED PICKUP MARKET ONE OF THE ONLY AUTO MARKET SEGMENTS THAT IS BOTH HIGHLY PROFITABLE AND DEVOID OF SERIOUS JAPANESE COMPETITION FORD MOTOR CO AND GENERAL MOTORS CORP WHICH DOMINATE THE SEGMENT HAVE LONG RELIED ON FEELGOOD IMAGE ADS TO ENHANCE THEIR STRONG BRAND IMAGES AND OWNER LOYALTY BUT CHRYSLER'S ADS FOR THE NEW RAM WILL BE AS DIFFERENT AS THE STYLING OF THE TRUCK ITSELF ONE NEW RAM AD TAKES A SWIPE AT THE GIMMICK OF STACKING A PYRAMID OF WINE GLASSES ON THE HOOD OF A CAR THAT'S REVVING UP ON ROLLERS TOYOTA MOTOR CORP FIRST USED THIS TRICK TO SHOW THE SMOOTHNESS OF ITS LEXUS LS400 LUXURY CAR THEN NISSAN MOTOR CO STOLE THE IDEA TO SHOW OFF ITS INEXPENSIVE ALTIMA CHRYSLER'S AD FOR THE NEW RAM TRUCK WILL SHOW A CHAMPAGNE GLASS PYRAMID BALANCED ON THE HOOD OF A DODGE INTREPID SEDAN A LOT OF CHAMPAGNE GLASSES HAVE BEEN USED TO PROVE HOW SMOOTH A CAR CAN BE CHRYSLER'S ANNOUNCER SAYS THEN THE CAMERA PULLS BACK AND VIEWERS SEE THAT THE SEDAN IS SITTING ON THE BED OF A RAM PICKUP ITS WHEELS SPINNING ON ROLLERS SURELY A TOAST IS IN ORDER FOR A TRUCK THAT CAN DO THE SAME THE NEW DODGE RAM THE RULES HAVE CHANGED IN OTHER ADVERTISEMENTS DODGE WILL USE STUDIO SHOTS AND THE SAME POLISHED ANNOUNCER WHO SELLS DODGE INTREPIDS EDWARD HERRMANN TO TALK ABOUT THE RAM'S CARLIKE FEATURES AN AIR BAG FOURWHEEL ANTILOCK BRAKES THOUGHTFUL INTERIOR DESIGN AND SMOOTH RIDE SOME SPOTS ALSO DISCUSS A STRONG FRAME AND POWERFUL ENGINE 9308130150 930813 WHO'S NEWS PITTENCRIEFF COMMUNICATIONS INC PITTENCRIEFF COMMUNICATIONS INC ABILENE TEXAS BILL KENNEDY JR WAS NAMED TO THE BOARD OF THIS MOBILE RADIO AND COMMUNICATIONS CONCERN INCREASING THE NUMBER OF SEATS ON ITS BOARD TO FIVE MR KENNEDY 53 YEARS OLD IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE GENERAL PARTNER OF DALLASBASED HIGHWAYMASTER LP A PROVIDER OF CELLULAR COMMUNICATIONS TO THE LONGHAUL TRUCKING INDUSTRY 9308130149 930813 WHO'S NEWS GRUBB & ELLIS CO GRUBB & ELLIS CO WASHINGTON PAUL NOVAK WAS NAMED SENIOR VICE PRESIDENT AND CHIEF MARKETING OFFICER AT THE REALESTATE FIRM MR NOVAK 47 YEARS OLD WORKED FROM 1981 TO 1992 AT MARRIOTT CORP AS SENIOR VICE PRESIDENT OF LODGING DEVELOPMENT BEFORE LEAVING MARRIOTT TO RUN HIS OWN CONSULTING COMPANY HE SUCCEEDS GORDON M HESS 44 WHO HAS BEEN NAMED CHIEF ADMINISTRATIVE OFFICER AT GRUBB & ELLIS 9308130148 930813 WHO'S NEWS BINDLEY WESTERN INDUSTRIES INC BINDLEY WESTERN INDUSTRIES INC INDIANAPOLIS KEITH W BURKS WAS ELECTED TO THE BOARD OF THIS DRUG WHOLESALER MR BURKS 35 YEARS OLD ALSO WAS NAMED EXECUTIVE VICE PRESIDENT OF THE CONCERN AND WILL CONTINUE IN HIS ROLE AS PRESIDENT OF BINDLEY WESTERN DRUG CO THE COMPANY'S MAJOR OPERATING UNIT 9308130147 930813 LEISURE & ARTS THE NINTH ROW'S HAPPY FAN BY JANE VANDENBURGH BERKELEY CALIF SOME OF THE EARLIEST MEMORIES OF PETER HOWARD ANTIQUARIAN BOOKSELLER OF BERKELEY CALIF ARE OF LYING IN BED DURING THE LATE 1940S LISTENING TO THE PITTSBURGH PIRATES ON ARMED FORCES RADIO THE WORLD WAS AT LAST AT PEACE TO THOSE SUSPENDED IN THAT PARTICULAR LATENIGHT AUDITORY ILLUMINATION IT MAY HAVE SEEMED THEN THAT IT MIGHT REMAIN EVER SO CHILDREN LYING BETWEEN CLEAN SHEETS LISTENING TO THE SOOTHING VOICES OFFERING THE PLAYBYPLAY OF A PERFECTLY ORDERED UNIVERSE BASEBALL FANS OFTEN SPEAK OF THE TIMELESSNESS OF THE GAME THAT IT LIKE CHILDHOOD SEEMS TO HOLD A NEVERENDING POTENTIAL IN MR HOWARD'S CASE MEMORIES OF BASEBALL DERIVE FROM EXOTIC PLACES HIS FATHER WAS IN THE MILITARY IN CHINA THEN IN OCCUPIED JAPAN SO THIS WAS AN AMERICAN CHILD LISTENING TO AN AMERICAN GAME FROM THE OTHER SIDE OF THE INTERNATIONAL DATE LINE IN A TECHNICAL YESTERDAY BEING BROADCAST BACK INTO THE TOMORROW THAT ALREADY SURROUNDED HIM FOR WHATEVER REASON MR HOWARD AN ARDENT AND DEDICATED SAN FRANCISCO GIANTS FAN WHO'S HELD THE SAME SEASON TICKETS IN THE NINTH ROW ON THE THIRD BASELINE AT CANDLESTICK PARK FOR AS LONG AS HE CAN REMEMBER HAS DEVELOPED AN ARTICULATE AND ELEGANT VIEW OF THE GAME THAT CONTINUES TO BUOY HIM HE GOES ON ABOUT BASEBALL PHILOSOPHICALLY FOR A WHILE THEN STOPS HIMSELF AND ADMITS SIMPLY IT'S BASEBALL THAT SUSTAINS MY LIFE THE GAME AS HE EXPLAINS GIVES HIM EVERYTHINGAN UNDERSTANDABLE PAST RULES REASON MAGIC BEAUTY A SENSE OF JUSTICE AND A COMPLETE WORLD VIEW INCLUDING AN ACQUAINTANCESHIP WITH HEAVEN AND ONE WITH HELL IT OFFERS WHATEVER A PERSON MIGHT NEED EVEN FUN HE ADDS SARDONICALLY IF FUN IS WHAT A PERSON FINDS HIMSELF REQUIRING AFTER THE FAMILY RETURNED TO THE US THE HOWARDS LIVED IN BALTIMORE WHERE HE FOLLOWED THE ORIOLES IN AN ADOLESCENT AND DESULTORY WAY IT WASN'T UNTIL MR HOWARD ARRIVED IN BERKELEY IN THE EARLY 1960S AND FOUND A LEVEL OF SOCIAL CHAOS IMPOSSIBLE TO NEGOTIATE THAT HE BECAME WHAT HE IS TODAY AN ABSOLUTE AND ARDENT BASEBALL FAN I CAN'T REALLY RECONSTRUCT MY EMOTIONAL LIFE AT THAT TIME MR HOWARD SAYS OF BERKELEY IN THE '60S THE JOKE BEING IF YOU CAN REMEMBER BERKELEY IN THE '60S YOU WERE REALLY NOWHERE NEAR HERE MR HOWARD CAME TO UCBERKELEY TO STUDY ENGLISH BUT QUICKLY DECIDED THE WORLD HAD NO NEED OF ANOTHER THIRDRATE ENGLISH PROFESSOR INSTEAD HE BECAME A FIRSTRATE BOOKSELLER IN A TOWN FAMOUS FOR ITS FIRSTRATE BOOKSELLERS HIS BUSINESS SERENDIPITY BOOKS NOW ENJOYS AN INTERNATIONAL REPUTATION MR HOWARD ALSO BECAME A FIRSTRATE FAN SERENDIP IS A MILE OR SO DOWN UNIVERSITY AVENUE FROM THE CAMPUS MUCH MORE STRATEGIC TO ITS LOCATION IT IS A CLOCKED THREETENTHS OF A MILE FROM THE FREEWAY ONRAMP THAT TAKES HIM OVER THE BAY BRIDGE AND THROUGH DOWNTOWN SAN FRANCISCO THEN SOUTH TO HUNTER'S POINT IN SOUTH SAN FRANCISCO WHERE CANDLESTICK PARK IS LOCATED HE GIVES THE TRIP AN HOUR UNLESS HE IS ON THE ROAD SCOUTING BOOKS MR HOWARD ATTENDS EACH OF THE 80 OR 81 HOME GAMES PLAYED BY THE GIANTS AS A BUSINESSMAN MR HOWARD MUST THINK OF THE COST OF HIS TIME HE ALLOTS A FULL FIVE HOURS TO EVERY HOME GAME HE ALSO LISTENS TO EVERY AWAY GAME ON THE RADIO BUT WE WON'T FIGURE THAT HERE MEASURED IN 40HOUR WORK WEEKS HOME GAMES ALONE AMOUNT TO TWOANDAHALF COMPLETE MONTHS PER YEAR NEARLY ONEFIFTH A WORKING LIFE BUT THIS IS TIME THAT MR HOWARD OFFERS AS FREELY AS A RELIGIOUS PERSON TITHES HE IS MORE THAN A FAN HE ACKNOWLEDGES MORE THAN A SIMPLE GAME'S COMMON ADVOCATE HE'S A DISCIPLE BASEBALL'S APOSTLE WILLING REALLY TO SACRIFICE GREATLY FOR ITS CONTINUANCE HE HAS A LONGSTANDING OFFER FOR INSTANCE TO TAKE ANYONE ALONG AT HIS OWN EXPENSE TO ANY HOME GAME HE DOES MEAN ANYONE THE ONLY STIPULATION IS THAT THIS INDIVIDUAL SHOW UP AT THE BOOKSTORE AN HOUR BEFORE GAME TIME THE OFFER INCLUDES GAS BRIDGE TOLL PARKING A GOOD SEAT DRINKS AND HOT DOGS MR HOWARD HOLDS TWO SEASON TICKETS ON THE THIRD BASELINE CHOSEN LONG AGO SO HE COULD SEE DOWN INTO THE GIANTS' DUGOUT HE ALSO HAS A FILE DRAWER IN THE BOOKSTORE WITH PACKETS OF UNUSED TICKETS TO TRADE IN SO HE CAN FULFILL ANY UNANTICIPATED DEMAND DEMAND IS GREAT THIS YEAR THE GIANTS ARE WINNING THE SAME GIANTS WHO AREN'T EVEN SUPPOSED TO STILL BE PLAYING HERE ON ONE RECENT SUNDAY THE PAID ADMISSION AT CANDLESTICK WAS OVER 53000 PEOPLE MR HOWARD IS OFTEN JOINED AT THE GAME BY THE THREE CZECH NATIONALS HE'S SPONSORING FOR CITIZENSHIP OR BY HIS WIFE ALISON OR BY ONE OR BOTH OF HIS TWO GROWN DAUGHTERS OR HE BRINGS A 12YEAR OLD NEPHEW A BOY WHO CAN REALLY POUND DOWN THE HOT DOGS IF MR HOWARD OWNED THE GIANTS HE SAYS HE'D GIVE AWAY 10000 FREE SEATS EVERY SINGLE DAY TO THE YOUTH OF THE BAY AREATHE FRANCHISE AS HE FIGURES IT COULD STILL COME OUT AHEAD SINCE EACH OF THESE KIDS CAN BE COUNTED ON TO EAT HIS OR HER OWN BODY WEIGHT IN CARBOS NOT ONLY THAT BUT THESE KIDS WOULD ALSO BE WHERE THEY BELONGED SAFELY AT A BALLPARK ENGAGED IN A WORTHY PURSUIT OF BASEBALL RATHER THAN TAGGING MUNI BUSES WITH SPRAY PAINT THE DISCIPLINE OF BASEBALL HAS LONG BEEN RESPONSIBLE FOR KEEPING YOUTH AT RISK FROM HARM BUT THE CHEAP SEATS AREN'T SO CHEAP ANY LONGER AND THEY SELL OUT QUICKLY THIS YEAR IT'S HIP TO SIT THERE THE SAN FRANCISCO GIANTS UNDER DUSTY BAKER'S MANAGEMENT ACTUALLY LOOK MUCH THE SAME THIS YEAR AS LAST BUT THERE SEEMS TO BE A SPIRITUAL DIFFERENCE THERE WERE GLOOMY DAYS LAST YEAR WHEN 3000 SCATTERED FANS SAT HUDDLED AND FROZEN TO WATCH THEIR GIANTS RUSTING IN THE TANK WAITING FOR BOB LURIE TO FIND THE MOST GLAMOROUS LOCATION TO PLACE THEM IT CAME DOWN TO GLITZ FACTORS HOW WOULD YOU RATE THESE TOWNS BY GLITZ FACTOR SAN JOSE SAN MATEO ST PETERSBURG MR LURIE WAS LOOKING FOR SOMETHING DOMED AND FLASHY SOMETHING SLIGHTLY MORE UPMARKET MORE CITYCENTRE HE WAS SET ON A DOWNTOWN STADIUM WHERE THE SUITS COULD WALK ON OVER FROM THEIR OFFICES ON MONTGOMERY STREET HE WANTED THE STADIUM ACCESSIBLE BY PUBLIC TRANSPORTATION SAN FRANCISCO VOTERS HOWEVER ARE A DIVERSE GROUP THIS CITY MAY LOOK WHITE COLLAR BUT THIS HAS ALWAYS BEEN A UNION TOWN UNLIKE THE OAKLAND A'S GIANTS MANAGEMENT HAS NEVER PURSUED ITS MOST VOCAL AND POWERFUL MINORITIES BLACKS AND GAYS AND THIS IS A CITY CURRENTLY BESET BY BUDGETARY WOES OF SUCH GRAVE PROPORTIONS THAT THE WHINING ABOUT THE WIND AT CANDLESTICK HAS BEGUN SOMEHOW TO SOUND HOLLOW AND BABYISH THERE ARE NO PUBLIC MONIES FOR THE HOMELESS FOR THE PARENTLESS ADDICTED PROSTITUTES IN THE STREETS FOR THE GROWING RANKS OF THE UNEMPLOYED AND THIS IS AN AMERICAN COMMUNITY TO A DEGREE LIKE NO OTHER THAT IS SICK TO ITS VERY SOUL WITH AIDS CANDLESTICK PARK IS STILL THE 'STICK PEOPLE STILL HATE IT IT'S WINDY RATTY REVILED BUT THE GIANTS ARE WINNING THEY WERE NINE GAMES UP IN THEIR DIVISION AT THE ALL STAR BREAK AND SEEMED TO HAVE REGAINED A CERTAIN POISE SAME OLD PARK SAME OLD GIANTS BUT SUDDENLY LOOKING GREAT WINNING HOWEVER IS NOT WHAT BASEBALL IS ALL ABOUT AS MR HOWARD WILL QUICKLY TELL YOU TEAMS WIN TEAMS LOSE THE BEST HITTER WILL ONLY SOMETIMES GET ON BASE AS THE STATS ARE THERE TO PROVE MR HOWARD BELIEVES THE HUGE SALARIES ARE IN PART A MEASURE OF THE BALL PLAYER'S CAPACITY TO SUFFER AND BALL PLAYERS DO SUFFER HE REMINDS US THEIR CAREERS GENERALLY ARE QUICKLY OVER AND MOST CAREERS AMOUNT TO LITTLE OF WHAT THEY MIGHT HAVE SEEMED TO PROMISE THE ROAD RUINS BALLPLAYERS THEIR FAMILIES CRUMBLE AND DRUGS GET IN THE WAY BALLPLAYERS END UP IF THEY'RE LUCKY SELLING CLASSIC CARS OR POOL COVERINGS ON LATENIGHT CABLE BALLPLAYERS SUFFER LIKE ALL HEROES FOR THE GOOD OF THE REST OF US THEY SUFFER PHYSICALLY EMOTIONALLY SPIRITUALLY THE HUMILIATION ON THE FACE OF METS' PITCHER ANTHONY YOUNG WHO RECENTLY BROKE HIS 29 GAME LOSING STREAK IS FOREVER SEARED INTO OUR PERSONAL IMAGERY AS HORRIBLE IN ITS OWN WAY AS WACO NIGHT AFTER NIGHT THE TV CAMERAMEN WOULD HUNT HIM DOWN FIND HIS FACE IN THE SHADOWS OF THE DUGOUT GOING AFTER EVERY HAUNTED FLICKER EVERY WINCE OF PAIN SUFFERING WAS ALL MR HOWARD AND OTHER TRUE GIANTS FANS KNEW LAST YEAR AT SEASON'S END THE UNTHINKABLE HAD HAPPENED MR LURIE DECIDED AGAINST MOVING THE GIANTS FURTHER DOWN THE PENINSULA AND WENT RIGHT AHEAD AND SOLD THEM ACCEPTING THE ST PETERSBURG OFFER ALL THAT WAS NECESSARY WAS FOR THE FRANCHISE OWNERS TO APPROVE THE DEAL SAN FRANCISCO MAYOR FRANK JORDAN DID WHAT MAYORS DO HE FORMED A COMMISSION THAT FORMED A COMMITTEE THE COMMITTEE SENT GIFT BASKETS TO THE FRANCHISE OWNERS' MEETING OFFERS OF FRIENDSHIP FROM THE CITY OF SAN FRANCISCO THESE OWNERS ARE ZILLIONAIRES UNSWAYED BY BASKETS OF ORANGES CALIFORNIA CHAMPAGNE FIVEPOUND BARS OF GHIRARDELLI CHOCOLATE ALL OF WHICH WAS LEFT TO WARM AND MELT AND MOLDER IN THE CONFERENCE ROOM AFTER THE SALE WAS QUICKLY APPROVED BUT IF BASEBALL CONTAINS AT LEAST THE POSSIBILITY OF MIRACLES AS MR HOWARD CONTENDS THEN 1993 STANDS AS TESTAMENT TO THIS A CONSORTIUM LED BY PETER MAGOWAN ON LEAVE FROM THE SAFEWAY CORPORATION MANAGED TO ARRANGE A DEAL WHEREBY THE GIANTS WERE PURCHASED FROM MR LURIE FOR LESS THAN ST PETERSBURG OFFERED AND SO ARE HERE TO STAY THIS IS A BUSINESS CONSORTIUM SUITS NO COLORFUL GUMCHEWING CHARACTER OWNERS NO HARDBOILED WIDOWS NO SURLY TUBSTER FIRING THEN REHIRING HIS SAME COMBATIVE MANAGER WHAT THE GIANTS HAVE AT LAST IS GOOD BUSINESS MANAGEMENT THE STADIUM ALSO HAS BETTER FOOD AND THIS DOES MATTER TO US THERE EVEN ARE RUMORS OF A GRILLED GARLIC CHICKEN SANDWICH SERVED ON FOCCACCIA THERE IS ALSO A REMARKABLE LACK OF CLOWNISHNESS NO HUMAN PERSON DRESSED AS A FUNKY CHICKEN LIPSYNCHING TO MADONNA NO ONE PAINTED NEON LIKE A NACHO CHEESE FLAVORED CHIP READYING HIMSELF WITH DRUM ROLLS TO BE DUNKED INTO A TUB OF SALSA THE GIANTS HAVE NEVER BEEN ABLE TO ABIDE A MASCOT FOR LONG IT IS A SOURCE OF LOCAL PRIDE THAT THE TRUE FAN CANNOT BE MADE TO DO THE WAVE SO FOR THE MOMENT AT LEAST WE IN THE BAY AREA DO ENDURE AT SERENDIPITY BUSINESS IS GOOD AND IN SPITE OF A DEVASTATING WILDFIRE THAT DESTROYED NEARLY 3000 HOUSES IN THE OAKLAND AND BERKELEY HILLS DESPITE THE EARTHQUAKE AND DROUGHT AND HIGH UNEMPLOYMENT THAT WILL INCREASE NOW WITH BASE CLOSURES LIFE STILL CAN SEEM SWEET OUR SCHOOL DISTRICTS ONCE RANKED FIRST IN THE NATION NOW FIND THEMSELVES IN RECEIVERSHIP SO MANY PEOPLE ARE LEAVING THE STATE THAT THE SELFMOVING COMPANIES SEND THEIR UHAULS OUT THEN MUST WAIT MONTHS FOR SOMEONE TO BRING ONE BACK STILL WE CONTINUE TO SUPPORT TWO MAJOR LEAGUE BASEBALL TEAMS AND A FIERCE CROSSBAY RIVALRY ONE DOES NOT HATE THE A'S AS MR HOWARD SAYS THE RIGHT THINKING PERSON HATES THE IDEA OF THE A'S BARRY BONDS IS PLAYING LIKE HE'S WORTH HIS MULTIMILLION DOLLAR SALARY WHEN HE GETS TO FIRST HIS DAD'S THERE AS COACH TO GIVE HIM A LITTLE PAT WILL CLARK HAS BEGUN TO SNEAK UP IN THE AVERAGES AND MATT WILLIAMS OFF INJURED RESERVE IS LOOKING LIKE A THREAT CALIFORNIA HAD RAIN THIS YEAR FOR THE FIRST TIME IN SEVEN SEASONS AND CANDLESTICK HAS REAL GRASS REAL SUNSHINE AND ENOUGH WATER IN THE RESERVOIR AT HETCHHETCHY TO KEEP IT GREEN THROUGH SUMMER THERE WAS STILL SNOW IN THE HIGH SIERRA IN LATE JULY AND THERE WERE WILDFLOWERS IN THE LOWER MEADOWS SO FAR NOT A SINGLE GAME HAS BEEN CALLED BECAUSE THE UMP CAN'T SEE THE BALL IN THE ICY FOG IN PART BECAUSE THE NEW OWNERS HAVE SCHEDULED MORE THAN 50 DAY GAMES THE 'STICK IS STILL THE 'STICK MAYBE WE'RE GROWING RESIGNED TO IT THERE'S SOMETHING TO BE LEARNED IN RESIGNATION SOMETHING TO DO WITH GRATITUDE WE MAY THINK WE DESERVE THE DOME THE TEMPERATURE CONTROL THE LUXURY BOXES THE LEATHER AND THE GLITZ BUT IT DOESN'T SEEM VERY LIKELY THAT WE ARE REALLY GOING TO GET ALL OR EVEN PART OF THAT IN THE MEANWHILE THE EXAMPLE OF A PERSON LIKE MR HOWARD PROVES IT'S STILL POSSIBLE TO LIVE A HAPPY LIFE AS A REAL FAN MS VANDENBURGH IS A NOVELIST IN BERKELEY 9308130146 930813 ENTERPRISE SUITS GO AFTER PERSONAL ASSETS OF FIRM OWNERS BY BARBARA MARSH STAFF REPORTER OF THE WALL STREET JOURNAL THE SHIELD OF INCORPORATION IS WEARING PERILOUSLY THIN FOR A GROWING NUMBER OF SMALLBUSINESS OWNERS ENTREPRENEURS OFTEN INCORPORATE TO LIMIT THEIR EXPOSURE TO BUSINESS LITIGATION BUT NOW MANY OWNERS RISK LOSING THEIR HOMES CARS YACHTS AND RETIREMENT SAVINGS AS MORE COURTS HOLD THEM RESPONSIBLE IN LAWSUITS AGAINST THEIR BUSINESSES THE RECENT PROLIFERATION OF REGULATIONS PROTECTING THE ENVIRONMENT AND WORKERS' RIGHTS HAS LED MANY COURTS TO TEAR DOWN THE CORPORATE SHIELD OF OWNERS REGARDING CLAIMS IN THESE AREAS SHAREHOLDERS OF CLOSELY HELD COMPANIES FACE INCREASED LIABILITY FOR ENVIRONMENTAL PENSION AND OTHER CLAIMS AGAINST THE CORPORATION CAUTIONS ROBERT THOMPSON A LAW PROFESSOR AT WASHINGTON UNIVERSITY IN ST LOUIS PROF THOMPSON SAYS THAT THE NUMBER OF CLOSELY TRACKED CASES ATTEMPTING TO PIERCE THE CORPORATE VEIL INCREASED 75 TO 286 OVER THE PAST DECADE AND AN ESTIMATED 60 OF THOSE INVOLVED PRIVATE COMPANIES IN AN EARLIER STUDY HE HAD FOUND THAT COURTS DECIDED AGAINST SOLE SHAREHOLDERS OF PRIVATE FIRMS IN NEARLY HALF OF 276 CASES STUDIED ENTREPRENEURS FEEL NEARLY DEFENSELESS AGAINST THE THREAT OF SUCH LITIGATION I'M SCARED TO DEATH SAYS JONATHAN SKLAR AN OWNER OF SPEXUS INC A SMALL COMPUTER CONSULTING FIRM IN ARLINGTON VA IS THERE ANYTHING WE CAN DO ABOUT IT NO SUCH SUITS OFTEN SURPRISE BUSINESS OWNERS BECAUSE THEY CHOSE THE CORPORATE FORM TO SHIELD THEMSELVES FROM LIABILITY WITH FEW EXCEPTIONS COURTS HISTORICALLY HAVE UPHELD THE PRINCIPLE THAT A CORPORATION IS SEPARATE FROM ITS SHAREHOLDERS OFFICERS AND DIRECTORS LEGAL SCHOLARS SAY SHAREHOLDERS GENERALLY ONLY RISKED THEIR INVESTMENT IN THE CORPORATION THEIR PERSONAL ASSETS WERE BEYOND THE REACH OF A LAWSUIT BY CONTRAST GENERAL PARTNERS IN A PARTNERSHIP ARE PERSONALLY LIABLE FOR THE BUSINESS'S OBLIGATIONS A LAWSUIT INVOLVING THE ADKINS FAMILY TYPIFIES THE NEW WAYS THAT COURTS ARE BROADENING THE PERSONAL EXPOSURE OF SMALLBUSINESS OWNERS THE FAMILY OPERATED A COAL MINE IN HIPPO KY IN JUNE ORVILLE ADKINS HIS WIFE DIXIE THEIR SON ADAM AND ADAM'S WIFE SALLY GOT A JOLT FROM A FEDERAL APPEALS COURT IN WASHINGTON DC UNION PENSION PLANS FOR RETIRED COAL MINERS HAD SUED THE FAMILY AND ITS HOLDINGS TO RECOVER NEARLY 2 MILLION FOR THE PLANS' UNFUNDED PENSION LIABILITIES PLUS INTEREST ACCORDING TO KENNETH ROBBETT A WASHINGTON DC ATTORNEY FOR THE ADKINSES A TRIAL COURT PREVIOUSLY DECIDED THAT THE PENSION PLANS COULDN'T IMPOSE PERSONAL LIABILITY ON THE FAMILY FOR THEIR INVESTMENT IN SEVERAL HUNDRED ACRES OF FARMING PROPERTIES WHERE THEY HUNT FISH AND TAKE VACATIONS BUT THE APPEALS COURT DISAGREED IT ORDERED THE TRIAL COURT TO RECONSIDER WHETHER THE PLANS CAN GO AFTER THE ADKINSES' FARM AND OTHER PERSONAL ASSETS MR ROBBETT SAYS THE CASE ILLUSTRATES HOW FAR PENSION PLANS CAN GO THESE DAYS TO RECOVER CLAIMS THE ATTORNEY NOTES NO ONE WOULD EXPECT THAT THEIR HOBBY OR RECREATION IN THIS CASE A GLORIFIED GARDEN WOULD SUBJECT THEM TO PERSONAL LIABILITY AS A RESULT OF A TECHNICALITY IN PENSION LAW HE SAYS A LAWYER FOR THE PENSION PLAN DECLINES TO COMMENT SHAREHOLDERS OF PRIVATE FIRMS ARE PECULIARLY VULNERABLE TO SUCH SUITS BECAUSE THEY OFTEN OWN AND MANAGE THEIR COMPANIES THAT DUAL ROLE GIVES COURTS DUAL REASONS TO HOLD THEM PERSONALLY LIABLE FOR A COMPANY'S ACTIONS LEGAL EXPERTS SAY IT IS ONLY THE SMALL ENTREPRENEURS WHO GET HIT WITH THIS SAYS STEPHEN PRESSER A NORTHWESTERN UNIVERSITY LAW PROFESSOR WHO HAS WRITTEN EXTENSIVELY ON THE SUBJECT MANY RECENT CLAIMS AGAINST PRIVATE SHAREHOLDERS INVOLVE ALLEGED VIOLATIONS OF FEDERAL LAWS ON CLEANUP OF ENVIRONMENTAL HAZARDS UNDER THOSE LAWS AN OWNER OR OPERATOR OF A FACILITY WHERE HAZARDOUS SUBSTANCES WERE DISPOSED IS LIABLE FOR REMOVAL COSTS OR OTHER REMEDIAL ACTION SOME FEDERAL COURTS HAVE INTERPRETED THE DEFINITION OF OWNER OR OPERATOR TO INCLUDE SHAREHOLDERS OF PRIVATE FIRMS LAST MARCH A FEDERAL APPEALS COURT IN CINCINNATI HELD A SOLE SHAREHOLDER OF A DEFUNCT AUTOPARTS MAKER LIABLE FOR POLLUTION AT THE FIRM'S WASTE DUMP IN THE 1970S FOR A TIME BARRELS OF MANUFACTURING SLUDGE HAD BEEN DISCARDED ON LAND LEASED TO THE COMPANY BY THE OWNER'S SISTER ACCORDING TO THE COURT'S OPINION IN 1987 A COUPLE BUYING THE WASTEDUMP SITE RICHARD DONAHEY AND HIS WIFE PATRICIA SUED THE COMPANY ITS OWNER AND THE OWNER'S SISTER SEABOURN LIVINGSTONE THE COMPANY'S NOWRETIRED OWNER DIDN'T KNOW ABOUT THE WASTE DISPOSAL THE OPINION NOTES STILL THE COURT FOUND IN MARCH THAT HE HAD THE AUTHORITY TO PREVENT THE CONTAMINATION OF THE PROPERTY BY HIS CORPORATION AND THEREFORE WAS ONE OF SEVERAL PEOPLE RESPONSIBLE IT'S AN AWFUL FINDING SAYS HENRY CARNABY A TROY MICH ATTORNEY FOR MR LIVINGSTONE THE OPINION SAYS THE DONAHEYS SHOULD RECOVER LEGAL FEES IN AN AMOUNT TO BE DEEMED REASONABLE BY THE LOWER COURT WHICH HAD ORIGINALLY RULED THAT MR LIVINGSTONE WASN'T LIABLE THE DONAHEYS SOUGHT TO RECOVER 279000 IN LEGAL FEES THOUGH MR CARNABY SAYS HE MAY APPEAL THE APPELLATE RULING A SEPARATE EVEN COSTLIER ISSUE LOOMS MR LIVINGSTONE AND THE OTHERS INVOLVED IN THE CASE HAVE NOT LEARNED YET WHO MUST PAY THE ESTIMATED 1 MILLIONPLUS FOR THE SITE'S EVENTUAL CLEANUP IN SOME FIELDS PRESSURE ON BUSINESS OWNERS HAS BEEN BUILDING FOR A NUMBER OF YEARS OWNERS OF SMALL BUSINESSES NOW FACE STIFFER PERSONAL PENALTIES IN A WIDENING ARRAY OF CASES INVOLVING STATE REGULATION OF WORKERS' WELFARE CERTAIN STATE COURTS GRADUALLY HAVE EXTENDED CORPORATIONS' TRADITIONAL LIABILITY FOR WORKERS' CLAIMS TO THEIR OWNERS IN AN IMPORTANT 1987 RULING AN ILLINOIS APPEALS COURT IN CHICAGO UPHELD A TRIAL COURT'S 73690 JUDGMENT AGAINST JOEL ROSS AN OWNER OF A LOCAL MOVIE THEATER FOR HIS FAILURE TO PAY EMPLOYEES' UNION DUES AND WELFARE CONTRIBUTIONS ACCORDING TO THE APPELLATE OPINION A COLLECTIVEBARGAINING AGREEMENT WITH THE COMPANY HAD PROVIDED FOR SUCH PAYMENTS MR ROSS SOUGHT TO AVOID PERSONAL LIABILITY BY CLAIMING THAT THE UNION'S TRUST FUND DIDN'T DEMONSTRATE THAT HE HAD KNOWINGLY OR WILLFULLY REFUSED TO MAKE THE PAYMENTS THE OPINION SAYS BUT AS THE COMPANY'S PRESIDENT AND CHIEF OPERATING OFFICER MR ROSS HAD MADE PAYMENTS AND SO KNEW ABOUT HIS OBLIGATION THE COURT RULED MR ROSS COULDN'T BE REACHED FOR COMMENT 9308130145 930813 HIGHER TAXES ON WEALTHY MAY REDUCE NUMBER OF TWOINCOME HOUSEHOLDS BY STEPHEN E FRANK STAFF REPORTER OF THE WALL STREET JOURNAL NEW TAXES ON THE WEALTHY COULD RESULT IN FEWER TWOINCOME HOUSEHOLDS AMONG THEM THAT'S THE CONCLUSION OF SEVERAL ECONOMISTS STUDYING THE RELATIONSHIP BETWEEN TAXATION AND LABOR SUPPLY THEY SUGGEST THAT THE MARGINAL FEDERAL TAX RATE OF 396 ON TAXABLE INCOME OF 250000 OR MORE WHICH TAKES EFFECT RETROACTIVELY TO THE BEGINNING OF THIS YEAR COULD ACT AS AN EMPLOYMENT DISINCENTIVE COMBINED WITH STATE AND LOCAL TAXES THE NEW RATES MEAN SOME HIGH EARNERS WILL COLLECT ONLY ABOUT 50 CENTS ON EVERY DOLLAR OVER 250000 IN CASES WHERE ONE SPOUSE IS THE PRIMARY BREADWINNER AND THE OTHER WORKS FOR SUBSTANTIALLY LESS OR IS CONSIDERING ENTERING THE WORK FORCE THE NEW TAXES MIGHT MAKE IT PREFERABLE TO STAY AT HOME EXPERTS SAY THIS MIGHT BE PARTICULARLY EVIDENT AMONG WOMEN WHO ARE THE BULK OF SECOND EARNERS AND COULD SLOW SEVERAL DECADES OF GROWTH IN FEMALE LABORFORCE PARTICIPATION AT THE MARGIN WHERE PEOPLE ARE MAKING THESE DECISIONS AS TO WHETHER TO WORK OR NOT TO WORK SOMEBODY'S GOING TO COME DOWN TO THE POINT THAT THE TAX MADE THE DIFFERENCE SAYS JOHN G WILKINS AN ECONOMIST AND FORMER TREASURY DEPARTMENT OFFICIAL WHO IS DIRECTOR OF TAX POLICY ECONOMICS FOR COOPERS & LYBRAND IT'S IRREFUTABLE ACCORDING TO THE TREASURY DEPARTMENT ABOUT 100000 INDIVIDUAL FILERS AND 400000 JOINT FILERS HAVE TAXABLE INCOMES OF 250000 OR MORE REPRESENTING ABOUT 04 OF ALL TAXPAYERS AND ACCORDING TO THE STATISTICAL ABSTRACT OF THE UNITED STATES PUBLISHED BY THE DEPARTMENT OF COMMERCE NEARLY 57 OF MARRIED WOMEN PARTICIPATED IN THE CIVILIAN LABOR FORCE IN 1988 THE MOST RECENT DATE FOR WHICH DATA ARE AVAILABLE THAT MARKS AN INCREASE OF MORE THAN 25 OVER THE PRECEDING 30 YEARS FOR WOMEN ESPECIALLY MARRIED WOMEN THE EVIDENCE SUGGESTS THAT INCREASES IN THE MARGINAL TAX RATE ON HIGHINCOME COUPLES WILL CAUSE SOME REDUCTION IN HOURS WORKED AND MAY WELL RESULT IN SOME WOMEN DROPPING OUT OF THE LABOR FORCE SAYS ROBERT K TRIEST A PROFESSOR OF ECONOMICS AT THE UNIVERSITY OF CALIFORNIADAVIS HARVARD ECONOMICS PROF MARTIN S FELDSTEIN RECKONS THAT THE IMPACT COULD BE SIZABLE HE SUGGESTS THAT FOR EVERY 10 INCREASE IN THE MARGINAL TAX RATE THE AVERAGE NUMBER OF WORKING HOURS PUT IN BY MARRIED WOMEN IN THE HIGHEST TAX BRAET WILL DECLINE BY BETWEEN 7 AND 15 THAT DROP COULD BE NOTICEABLE WITHIN TWO TO THREE YEARS SAYS DR FELDSTEIN A ONETIME SENIOR OFFICIAL IN THE REAGAN ADMINISTRATION WHO IS DIRECTOR OF THE NATIONAL BUREAU OF ECONOMIC RESEARCH LESS CONSERVATIVE ECONOMISTS OFFER MORE CONSERVATIVE ESTIMATES GARY BURTLESS AN ECONOMIST WITH THE BROOKINGS INSTITUTION EXPECTS A MAXIMUM DECREASE OF BETWEEN 3 AND 5 OVER TWO TO FOUR YEARS GIVEN THAT THE HIGHER TAXES AFFECT LESS THAN 2 OF THE POPULATION DR BURTLESS SAYS THE IMPACT WILL BE NEGLIGIBLE STILL A 1992 PAPER COWRITTEN BY DR BURTLESS AND PUBLISHED IN THE JOURNAL OF ECONOMIC PERSPECTIVES DEMONSTRATED THAT FEMALE LABOR SUPPLY GREW AT AN ACCELERATED PACE DURING THE 1980S WHEN MARGINAL TAX RATES ON THE WEALTHY WERE DRAMATICALLY REDUCED IT IS LIKELY THAT PART OF THE ESTIMATED CHANGE AMONG HIGHINCOME WOMEN IS ATTRIBUTABLE TO MARGINAL TAX RATE REDUCTIONS THE PAPER CONCLUDED AND IN A 1990 PAPER THAT APPEARED IN THE JOURNAL OF HUMAN RESOURCES UC'S DR TRIEST SUGGESTED THAT FOR MANY WOMEN THE DECISION TO PARTICIPATE IN THE LABOR FORCE IS QUITE ELASTIC WITH RESPECT TO THE NET WAGE DR FELDSTEIN ALSO ARGUES THAT THE EFFECTS OF THE TAX HIKE COULD EXTEND TO THE TYPE OF WORK SOUGHT BY WOMEN AND MEN AND THE EFFORT THEY EXPEND THESE HIGH MARGINAL TAX RATES WILL TILT THE CHOICE TOWARD DOING THINGS WHICH SOCIETY REGARDS AS LESS PRODUCTIVE AND PAYS LESS FOR BUT WHICH MAY BE MORE INTERESTING PLEASANT OR CLOSER TO HOME HE SAYS A FEW ECONOMISTS SAY THE REDUCTION IN LABOR SUPPLY COULD MINIMIZE ANY BENEFIT TO THE GOVERNMENT FROM THE HIGHER TAXES THOUGH THE EFFECT OF OTHER FACTORS TAX AVOIDANCE THROUGH INCOME SHELTERS OR DEFERRED COMPENSATION PACKAGES FOR EXAMPLE WILL LIKELY BE MORE NOTICEABLE ACCORDING TO UC'S DR TRIEST THE TAX HIKE'S NEGATIVE EFFECTS COULD HAVE BEEN ALLEVIATED BY A TAX CREDIT FOR MARRIED WOMEN WHO WORK SIMILAR TO ONE CONTAINED IN THE REAGAN ADMINISTRATION'S TAX REFORM PACKAGE OF 1981 THE DEDUCTION WAS REPEALED IN 1986 BUT OTHER ECONOMISTS ARGUE THAT SUCH A PLAN WOULD CREATE MORE LOOPHOLES FOR THOSE SEEKING TO AVOID PAYING TAXES IT'S JUST TAX SHIFTING WITH NO EFFECTS OR BAD EFFECTS ON THE ECONOMY SAYS JERRY HAUSMAN PROFESSOR OF ECONOMICS AT MIT AND MANY EXPERTS DISPUTE THE NOTION THAT HIGHER TAXES AFFECT LABOR SUPPLY THERE'S A CASE THAT CAN BE MADE THAT IF YOU RAISE TAXES THERE COULD BE AN INCREASE IN EFFORT SAYS ORLEY ASHENFELTER A LABOR ECONOMIST AT PRINCETON THERE ARE PEOPLE IN THE WORLD WHO WORK 60 HOURS A WEEK AND MAKE ABOUT 25 CENTS AN HOUR 9308130144 930813 NORTHERN TELECOM GETS CONTRACT TORONTO NORTHERN TELECOM LTD SAID IT SIGNED A 53 MILLION CONTRACT WITH THE BEIJING TELECOMMUNICATIONS ADMINISTRATION TO SUPPLY CENTRAL OFFICE SWITCHING SYSTEMS TO THE CAPITAL OF CHINA THESE SYSTEMS WHICH WILL BE MANUFACTURED IN CANADA AND THE US WILL ADD MORE THAN 340000 LINES TO THE BEIJING NETWORK SEVERAL OF THE SYSTEMS WILL PROVIDE 40000 LINES EACH AMONG THE LARGEST IN THE BEIJING NETWORK INSTALLATION WILL BEGIN LATER THIS YEAR AND ALL LINES WILL BE IN BY EARLY 1995 9308130143 930813 ECONOMY PRODUCER PRICES DROPPED AGAIN DURING JULY DECLINE OF 02 FOLLOWED JUNE'S 03 DECREASE RETAIL SALES EDGED UP BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE LATEST ECONOMIC STATISTICS SUGGEST THAT INFLATION ISN'T A PROBLEM AND THAT THE ECONOMY IS CONTINUING TO GROW AT A VERY MODEST PACE THE LABOR DEPARTMENT SAID PRICES AT THE WHOLESALE LEVEL FELL 02 IN JULY AFTER A 03 DROP IN JUNE MAKING IT THE FIRST BACKTOBACK DECLINE IN THE PRODUCER PRICE INDEX IN TWO YEARS IN ANOTHER REPORT THE COMMERCE DEPARTMENT SAID A DOWNTURN IN CAR SALES HELD RETAIL SALES TO AN INCREASE OF ONLY 01 IN JULY TO 17230 BILLION TAKEN TOGETHER ANALYSTS SAID THE FIGURES POINT TO AN ECONOMY THAT IS STILL VERY MUCH IN A SLOWGROWTH MODE THE RETAILSALES NUMBERS SHOW THAT THE ECONOMY IS HARDLY SO ROBUST THAT WE NEED TO WORRY ABOUT UPWARD PRESSURE ON PRICES SAID KATHRYN KOBE ECONOMIST FOR JOEL POPKIN & CO IN WASHINGTON THE WHOLESALE INFLATION NUMBERS HELPED EASE LINGERING FEARS THAT PRICES MAY BE GAINING SIGNIFICANT MOMENTUM WHICH WOULD CAUSE THE FEDERAL RESERVE TO RAISE SHORTTERM INTEREST RATES THE SLOW RISE IN PRICES SINCE A SPURT IN THE FIRST FOUR MONTHS OF THE YEAR ANALYSTS SAY WILL MOST LIKELY CAUSE THE FED TO MOVE LATER RATHER THAN SOONER IT IS CONSUMER PRICES RATHER THAN PRODUCER PRICES HOWEVER THAT ARE SCRUTINIZED MOST FOR SIGNS OF INFLATION AND THOSE FIGURES WILL BE RELEASED TODAY A 1 SLUMP IN ENERGY PRICES WAS MOSTLY RESPONSIBLE FOR THE DECLINE IN PRODUCER PRICES LAST MONTH EXCLUDING THE VOLATILE FOOD AND ENERGY SECTORS PRODUCER PRICES ROSE 01 AFTER AN 01 DROP IN JUNE PRICES FOR INTERMEDIATE GOODS FELL 01 LAST MONTH AFTER RISING 02 IN JUNE AND CRUDE GOODS DROPPED 13 AFTER A 11 DECLINE IN JUNE PRICES FOR INTERMEDIATE AND CRUDE GOODS ALSO FELL DURING THE MONTH RETAIL SALES HAVE BEEN GAINING CONSISTENTLY SINCE APRIL THOUGH JULY POSTED THE SMALLEST RISE SALES LAST MONTH WERE HURT MOST BY AUTO SALES WHICH FELL 07 AS A RESULT SALES OF DURABLE GOODS ITEMS INTENDED TO LAST MORE THAN THREE YEARS WERE FLAT DESPITE A 17 JUMP IN FURNITURE SALES AND A 06 RISE FOR BUILDING MATERIALS AMONG NONDURABLE GOODS SALES AT DEPARTMENT STORES AND CLOTHING BOUTIQUES WERE STRONG WHICH ANALYSTS ATTRIBUTED TO SALES AND PROMOTIONS SALES AT FOOD STORES DRUGSTORES AND GASOLINE STATIONS WERE WEAK ANALYSTS SAID THE WEAK RETAILSALES FIGURES SUGGEST THAT CONSUMER SPENDING WON'T GIVE THE ECONOMY AS BIG A BOOST IN THE THIRD QUARTER AS IT DID IN THE SECOND INCOME GAINS CONSUMER CONFIDENCE AND THE JOB MARKET ARE STILL WEAK SAID SANDRA SHABER RETAILING ANALYST FOR THE WEFA GROUP IN SUBURBAN PHILADELPHIA THE UNDERLYING FUNDAMENTALS FOR STRONG CONSUMER SPENDING JUST AREN'T THERE SEPARATELY THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS FELL 3000 IN THE WEEK ENDED AUG 7 TO 332000 THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH IS A BETTER MEASURE OF LABORMARKET CONDITIONS WAS 353500 IN THE REPORTING WEEK UP FROM 352500 ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE LABOR DEPARTMENT'S PRODUCER PRICE INDEXES 1982=100 FOR JULY BEFORE SEASONAL ADJUSTMENT AND THE PERCENTAGE CHANGES FROM JULY 1992 9308130142 930813 KENDALL SQUARE AGREES WITH PROFIT ESTIMATES FOR QUARTER AND YEAR WALTHAM MASS KENDALL SQUARE RESEARCH INC IS QUITE COMFORTABLE WITH ANALYSTS' ESTIMATES THAT IT WILL EARN 45 CENTS TO 50 CENTS A SHARE FOR THE YEAR PRESIDENT HENRY BURKHARDT SAID FOR 1992 KENDALL SQUARE WHICH HAS EMERGED FROM THE PRODUCT DEVELOPMENT STAGE INTO PRODUCTION OF SUPERCOMPUTERS REPORTED A NET LOSS OF 127 MILLION OR 122 A SHARE MR BURKHARDT ALSO SAID HE IS COMFORTABLE WITH ESTIMATES THAT REVENUE FOR THE YEAR WILL TOP 60 MILLION UP FROM 207 MILLION AND HE SAID HE IS COMFORTABLE WITH THIRDQUARTER EARNINGS ESTIMATES OF NINE CENTS TO 13 CENTS A SHARE FOR THE YEAREARLIER QUARTER KENDALL SQUARE REPORTED A NET LOSS OF 29 CENTS A SHARE ON REVENUE OF 53 MILLION AT THE END OF THE SECOND QUARTER KENDALL SQUARE HAD 143 MILLION SHARES OUTSTANDING MR BURKHARDT NOTED THAT EUROPE WHERE KENDALL SQUARE GOT 40 OF ITS REVENUE LAST YEAR IS SEASONALLY SLOW AND THE SUPERCOMPUTER BUSINESS CAN BE DRAMATICALLY AFFECTED IF ONE OR TWO MACHINE PURCHASES ARE DELAYED FROM ONE QUARTER TO ANOTHER AFTER SIX YEARS OF DEVELOPMENT WORK KENDALL SQUARE FIRST SHOWED A SLIM PROFIT IN THE FOURTH QUARTER LAST YEAR AND HAS REPORTED HIGHER PROFIT IN EACH QUARTER SINCE KENDALL SQUARE SELLS HIGHPERFORMANCE COMPUTERS THAT USE MASSIVELY PARALLEL PROCESSING TECHNOLOGY TO GROUP TOGETHER DOZENS OR HUNDREDS OF PROCESSORS TO SOLVE PROBLEMS QUICKLY ALTHOUGH MANY SALES ARE TO SCIENTIFIC RESEARCH CUSTOMERS KENDALL'S GOAL IS TO CRACK THE HIGHPERFORMANCE COMMERCIAL MARKET BECAUSE IT IS MUCH CHEAPER TO BUILD PARALLEL PROCESSING COMPUTERS THAN CONVENTIONAL MAINFRAMES KENDALL SQUARE EXPECTS USERS OF INTERNATIONAL BUSINESS MACHINES CORP MAINFRAMES TO GRADUALLY MOVE TO PARALLEL COMPUTERS KENDALL SQUARE SAYS ONE OF ITS 975000 MODELS WITH 16 PROCESSORS CAN HANDLE 1200 TRANSACTIONS A SECOND A MEASURE OF COMMERCIAL COMPUTER SPEED 9308130141 930813 BUSINESS BRIEF CATERPILLAR INC PLANT SETS PARTIAL SHUTDOWN AS INVENTORYCUTTING MOVE CATERPILLAR INC SAID IT WILL PARTLY SHUT DOWN ITS TRACKTYPE TRACTOR BUSINESS FACILITY IN EAST PEORIA ILL FOR TWO WEEKS BEGINNING SEPT 13 TO BRING INVENTORIES IN LINE WITH DEMAND THE PEORIA ILL MAKER OF CONSTRUCTION EQUIPMENT SAID DEMAND FOR MOST CATERPILLAR EQUIPMENT IS GOOD DUE TO THE IMPROVING US ECONOMY HOWEVER DESPITE WHAT IT CALLED RECORD LEVELS OF MARKET ACCEPTANCE FOR OTHER CATERPILLAR MODELS IT SAID INDUSTRY TRACKTYPE DEMAND CONTINUES TO LAG AND THAT INVENTORIES ARE TOO LARGE CATERPILLAR SAID THE SHUTDOWN WON'T AFFECT OTHER PRODUCTS OR FACILITIES AND DOESN'T ALTER ITS OUTLOOK FOR THE YEAR THE COMPANY SAID 1600 EMPLOYEES AT THE PLANT WILL BE AFFECTED BUT 1000 WILL CONTINUE TO WORK THROUGHOUT THE TWOWEEK PERIOD PERFORMING MAINTENANCE AND PRODUCING PARTS 9308130140 930813 WHO'S NEWS NASHUA CORP NASHUA CORP NASHUA NH WILLIAM E MITCHELL SENIOR VICE PRESIDENT OF RAYCHEM CORP WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER MR MITCHELL 49 YEARS OLD SUCCEEDS CHARLES E CLOUGH 63 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE MAKER OF PAPER PRODUCTS COMPUTER PRODUCTS AND OFFICE SUPPLIES 9308130139 930813 WILLAMETTE INDUSTRIES' NOTES PORTLAND CALIF WILLAMETTE INDUSTRIES INC SAID IT WILL REDEEM ITS 8 1/2 NOTES DUE 1996 ON OCT 15 AT A PRICE EQUAL TO 100 OF THE PRINCIPAL AMOUNT OUTSTANDING THE AGGREGATE PRINCIPAL AMOUNT OUTSTANDING IS 75 MILLION 9308130138 930813 BARNETT BANKS TO SELL TWO UNITS JACKSONVILLE FLA BARNETT BANKS INC SAID IT HAS SIGNED A LETTER OF INTENT TO SELL TWO STUDENTLOAN UNITS TO UNION BANK & TRUST CO A PRIVATELY HELD FIRM BASED IN LINCOLN NEB TERMS OF THE TRANSACTION WEREN'T DISCLOSED BUT BARNETT SAID ITS 1993 EARNINGS WOULDN'T BE AFFECTED 9308130137 930813 KLM EARNINGS INCREASED 53 IN ITS 1ST PERIOD SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM HELPED BY SUBSTANTIALLY SMALLER LOSSES ON HOLDINGS IN AFFILIATES KLM ROYAL DUTCH AIRLINES BOOSTED NET INCOME 53 IN THE FIRST QUARTER ENDED JUNE 30 DESPITE A 41 DECLINE IN REVENUE THE EXTENT OF THE PROFIT EXCEEDED THE EXPECTATIONS OF MANY ANALYSTS SOME OF WHOM HAD EXPECTED A LOSS THE COMPANY'S STOCK PRICE CLIMBED TO 3760 GUILDERS FROM 3660 ON WEDNESDAY THE 382 STATEOWNED DUTCH FLAG CARRIER SAID PROFIT ROSE TO AROUND 40 MILLION GUILDERS 206 MILLION FROM 38 MILLION GUILDERS A YEAR EARLIER REVENUE WAS 211 BILLION GUILDERS EVEN THOUGH THE EARNINGS ARE BETTER THAN MANY ANALYSTS EXPECTED THE RESULTS ARE A MIXED BAG THE DATA SHOW THE IMPROVEMENT REFLECTED THE FACT THAT THE COMPANY'S SHARE IN LOSSES IN MINORITYOWNED AFFILIATES SHRANK TO SEVEN MILLION GUILDERS IN THE LATEST QUARTER FROM 61 MILLION GUILDERS A YEAR EARLIER THAT WAS DUE PRIMARILY TO THE FACT THAT KLM WROTE OFF ITS ENTIRE INVESTMENT IN NORTHWEST AIRLINES LAST YEAR AND IS NO LONGER EXPOSED TO THE US CARRIER'S LOSSES KLM OWNS A DIRECT 20 STAKE IN THE COMMON STOCK OF NORTHWEST'S PARENT WINGS HOLDINGS INC AND HOLDS 300 MILLION OF INTERESTBEARING CONVERTIBLE SUBORDINATED DEBENTURES THE DISPOSAL OF THE MINORITY STAKE IN THE STRUGGLING FRENCH REGIONAL AIRLINE AIR LITTORAL LAST NOVEMBER ALSO HELPED NARROW KLM'S LOSSES ON AFFILIATES BUT THE BETTER KLM EARNINGS THUS FAR THIS YEAR ALSO REFLECT SOME IMPROVEMENTS ON THE COST SIDE MOST IMPORTANT KLM WAS ABLE TO CUT ITS OUTLAYS ON SALARIES AND SOCIAL BENEFIT CONTRIBUTIONS 14 TO 518 MILLION GUILDERS FROM 602 MILLION THE COMPANY IN RECENT MONTHS HAS WON CONCESSIONS FROM ITS UNIONS TO FORGO WAGE INCREASES THIS YEAR AND NEXT AS WELL AS ON A MORATORIUM ON PENSION PAYMENTS THOSE AGREEMENTS ARE EXPECTED TO SAVE THE COMPANY SEVERAL HUNDRED MILLION GUILDERS THIS YEAR AND NEXT MEANTIME FUEL COSTS WERE 9 HIGHER IN THE FIRST QUARTER ALTHOUGH THAT RISE WAS PARTLY OFFSET BY A 7 DECLINE IN OUTLAYS ON MATERIALS BUT KLM'S REVENUE AND UNDERLYING PROFITABILITY REMAINED UNDER INTENSE PRESSURE BECAUSE OF SLACK MARKETS AND INTENSE PRICE WARS ON MAJOR ROUTES ESPECIALLY TO NORTH AMERICA AND ASIA THE COMPANY'S PRETAX OPERATING PROFIT FELL 17 IN THE LASTEST FISCAL QUARTER TO 151 MILLION GUILDERS FROM 182 MILLION THOSE FIGURES ALSO ARE BEFORE FINANCING CHARGES PROFIT OR LOSSES ON AFFILIATES AS WELL AS EXTRAORDINARY ITEMS AND PROCEEDS ON ASSET SALES AS EXPECTED NET INTEREST EXPENSES SURGED IN THE FIRST QUARTER THEY WERE UP 25 MILLION GUILDERS OR 31 FROM A YEAR EARLIER TO 106 MILLION GUILDERS 9308130136 930813 WHO'S NEWS ALLIANCE IMAGING INC ALLIANCE IMAGING INC ORANGE CALIF VINCENT S PINO 45 YEARS OLD HAS BEEN NAMED CHIEF OPERATING OFFICER AFTER SERVING AS CHIEF FINANCIAL OFFICER FOR NEARLY FIVE YEARS FOR THIS PROVIDER OF MAGNETIC RESONANCE IMAGING SERVICES PINO WILL RETAIN HIS POST AS EXECUTIVE VICE PRESIDENT PREVIOUSLY THE COMPANY HAD NO CHIEF OPERATING OFFICER TERRENCE M WHITE 39 WHO SUCCEEDS MR PINO HAS ALSO BEEN NAMED TO THE NEW POST OF SENIOR VICE PRESIDENT OF FINANCE MR WHITE HAD BEEN A PARTNER IN LOS ANGELES WITH ERNST & YOUNG ACCOUNTING SINCE 1975 THE COMPANY ALSO SAID IT NAMED JAMES E BUNCHER 56 TO FILL A VACANCY ON ITS SIXMEMBER BOARD OF DIRECTORS HE SUCCEEDS DOUGLAS WHEAT WHO RESIGNED IN MARCH TO ATTEND TO OTHER BUSINESS MATTERS A COMPANY OFFICIAL SAID 9308130135 930813 PILKINGTON SELLS STAKE IN UNIT LONDON BRITISH GLASSMAKER PILKINGTON PLC SAID IT SOLD 20 OF ITS UNITED KINGDOM AUTOMOTIVE GLAZING SUBSIDIARY TRIPLEX SAFETY GLASS TO JAPAN'S NIPPON SHEET GLASS CO FOR 133 MILLION 196 MILLION PILKINGTON SAID THE NEW SHAREHOLDING WILL COMPLEMENT NIPPON SHEET GLASS'S EXISTING 20 STAKE IN LIBBEYOWENSFORD CO LIBBEYOWENSFORD IS PILKINGTON'S US UNIT TRIPLEX SAFETY GLASS HAS ANNUAL SALES OF 80 MILLION WHILE NIPPON SHEET GLASS'S SALES AMOUNTED TO 15 BILLION IN THE YEAR ENDED MARCH 31 9308130134 930813 TEXACO UNIT OFFERS DEBENTURES WHITE PLAINS NY TEXACO INC SAID ITS UNIT TEXACO CAPITAL INC IS OFFERING 200 MILLION OF 30YEAR DEBENTURES AT 973 OF FACE VALUE THE DEBENTURES ARE CALLABLE AFTER 10 YEARS AND GUARANTEED BY THE PARENT COMPANY PROCEEDS WILL BE LOANED TO THE PARENT TO BE USED FOR WORKING CAPITAL RETIREMENT OF DEBT AND OTHER GENERAL CORPORATE PURPOSES LEAD MANAGER IS FIRST BOSTON CORP 9308130133 930813 GM OBTAINS A RULING PERMITTING IT TO CLOSE YPSILANTI PLANT NOW 124 DETROIT THE MICHIGAN COURT OF APPEALS HAS GRANTED GENERAL MOTORS CORP'S REQUEST THAT A RULING ALLOWING THE AUTO MAKER TO SHUT ITS YPSILANTI MICH ASSEMBLY PLANT BECOME EFFECTIVE IMMEDIATELY THE COURT IN LANSING RULED EARLIER THIS MONTH THAT GM WASN'T OBLIGATED TO KEEP THE PLANT RUNNING DESPITE THE YEARS OF TAX BREAKS IT HAD RECEIVED FROM YPSILANTI AS AN INCENTIVE TO STAY THE DECISION CLEARS THE WAY FOR GM TO CLOSE THE YPSILANTI PLANT AND CONSOLIDATE PRODUCTION OF ITS LARGE REARDRIVE CARS AT ITS FACTORY IN ARLINGTON TEXAS YPSILANTI MUST NOW PERSUADE THE STATE SUPREME COURT TO HEAR AN APPEAL OF THE RULING THE TOWNSHIP'S ATTORNEY COULDN'T BE REACHED FOR COMMENT 9308130132 930813 SUPERIOR INDUSTRIES GETS JOB VAN NUYS CALIF SUPERIOR INDUSTRIES INTERNATIONAL INC SAID IT WON A NEW FIVEYEAR CONTRACT TO SUPPLY FORD MOTOR CO WITH CASTALUMINUM WHEELS FOR A VARIETY OF CARS AND TRUCKS THE CONTRACT EXTENDS A SIMILAR AGREEMENT THAT EXPIRED THIS MONTH A SPOKESMAN FOR THE WHEEL MAKER DECLINED TO STATE THE VALUE OF THE CONTRACT BUT HE ACKNOWLEDGED THAT IT ACCOUNTS FOR ABOUT HALF THE COMPANY'S ANNUAL SALES SUPERIOR WHICH ALSO SUPPLIES JAPANESE MANUFACTURERS REPORTED 1992 SALES OF 3253 MILLION AFTER THE ANNOUNCEMENT YESTERDAY SUPERIOR JUMPED 1375 TO 4250 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9308130131 930813 WHO'S NEWS CYPRESS SEMICONDUCTORS CORP CYPRESS SEMICONDUCTOR CORP SAN JOSE CALIF ERIC BENHAMOU 38 YEARS OLD WAS NAMED TO THE BOARD OF THIS SEMICONDUCTOR COMPANY BRINGING THE NUMBER OF DIRECTORS TO FIVE MR BENHAMOU IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF 3COM CORP A SANTA CLARA CALIF COMPUTER NETWORKING PRODUCTS COMPANY 9308130130 930813 FRANCE'S JULY CPI ROSE MODESTLY PARIS FRANCE'S JULY PROVISIONAL CONSUMER PRICE INDEX ROSE A SEASONALLY ADJUSTED 01 TO 02 ON THE MONTH LEAVING THE YEARONYEAR INFLATION AT 21 TO 22 THE NATIONAL STATISTICS INSTITUTE SAID SINCE THE BEGINNING OF THE YEAR CONSUMER PRICES HAVE RISEN A SEASONALLY ADJUSTED 15 TO 16 THE MONTHLY GAIN IN JULY FOLLOWED A DECLINE IN THE JUNE CPI OF 01 ON THE MONTH AND A YEARONYEAR RATE OF 19 THE JULY GAINS IN THE MONTHLY AND ANNUAL CPI WERE SLIGHTLY BELOW ECONOMISTS' PROJECTIONS FOR AN INCREASE OF 03 AND 24 RESPECTIVELY IN JULY FOOD PRICES RETREATED A SEASONALLY ADJUSTED 02 ON THE MONTH BUT ROSE 03 ON THE YEAR WHILE ENERGY PRICES INCLUDING THE COSTS OF PETROLEUM PRODUCTS AND THE HIGHER GASOLINE TAXES ROSE 32 AND 36 RESPECTIVELY 9308130129 930813 MONEYFUND ASSETS ROSE BY 568 BILLION IN THE LATEST WEEK WASHINGTON MONEYMARKET MUTUAL FUND ASSETS ROSE 568 BILLION TO 57974 BILLION FROM 57406 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 645 RETAIL MONEYMARKET MUTUAL FUNDS FELL BY 105 BILLION TO 38918 BILLION THE TRADE GROUP SAID ASSETS OF 404 TAXABLE MONEYMARKET FUNDS IN THE RETAIL CATEGORY FELL BY 8066 MILLION TO 30625 BILLION ASSETS OF 241 RETAIL TAXEXEMPT FUNDS FELL BY 2464 MILLION TO 8293 BILLION ASSETS OF THE 270 INSTITUTIONAL MONEYMARKET FUNDS ROSE BY 673 BILLION TO 19056 BILLION AMONG THE INSTITUTIONAL FUNDS THE ASSETS OF 219 TAXABLE FUNDS ROSE BY 684 BILLION TO 17010 BILLION ASSETS OF 51 TAXEXEMPT FUNDS FELL BY 1079 MILLION TO 2046 BILLION 9308130128 930813 INTERNATIONAL SINGAPORE CONSORTIUM SEEKS TO BUILD A CHIP OFF THE OLD BLOCK IN CHINA BY G PIERRE GOAD STAFF REPORTER OF THE WALL STREET JOURNAL SINGAPORE AN AMBITIOUS PLAN IS FIRMING UP TO CLONE SINGAPORE A SOUTHEAST ASIAN REPUBLIC THAT HAS ACHIEVED GREAT ECONOMIC SUCCESS DESPITE ITS TINY SIZE ON A 27SQUAREMILE PLOT IN SUZHOU CHINA THE SHOWCASE PROJECT WHICH HAS BEIJING'S BLESSING IS THE FRUIT OF SINGAPORE'S AGGRESSIVE ALBEIT BELATED EFFORT TO CATCH UP WITH HONG KONG AND TAIWAN IN THE CHINA INVESTMENT RACE A CONSORTIUM LED BY KEPPEL CORP WHICH IS 35 OWNED BY THE SINGAPORE GOVERNMENT SAID YESTERDAY IT SIGNED AN AGREEMENT IN PRINCIPLE WITH THE SUZHOU CITY AND JIANGSU PROVINCIAL GOVERNMENTS TO ESTABLISH A JOINTVENTURE COMPANY THAT WILL DEVELOP AN INDUSTRIAL COMMERCIAL AND RESIDENTIAL MODERN TOWNSHIP IN SUZHOU THAT WILL BE RUN ALONG SINGAPORE LINES AT THE SIGNING CEREMONY IN SINGAPORE ZHANG XINSHENG THE MAYOR OF SUZHOU EXPRESSED CONFIDENCE THE VENTURE WILL BUILD A WORLDCLASS INDUSTRIAL TOWN INCORPORATING THE BEST OF SINGAPORE IF IT DOES THE VENTURE COULD BE A ROARING SUCCESS THOUGH SINGAPORE SOMETIMES GETS MORE PUBLICITY FOR QUIRKS SUCH AS BANNING CHEWING GUM THE CITYSTATE IS AN ECONOMIC POWERHOUSE SKILLED AT ATTRACTING THE MULTINATIONALS THAT SUZHOU WANTS SINGAPORE WHICH ITSELF HAS LESS THAN 240 SQUARE MILES IS RUN SOMETHING LIKE ONE BIG INDUSTRIAL AND OFFICE PARK AND HAS A FORMIDABLE RECORD AS A COMPETITOR FOR OVERSEAS INVESTMENT SCORES OF EUROPEAN NORTH AMERICAN AND JAPANESE MULTINATIONALS HAVE THEIR SOUTHEAST ASIA HEADQUARTERS HERE MANY OF THOSE SAME COMPANIES WILL BE NATURAL TARGETS FOR THE SUZHOU PROJECT'S DEVELOPERS THE SUZHOU PROJECT REFLECTS THE SINGAPORE GOVERNMENT'S EFFORTS TO CULTIVATE RELATIONSHIPS WITH LEADERS OF THE CENTRAL GOVERNMENT IN BEIJING THE REPUBLIC IS COUNTING ON GOVERNMENT CONTACTS TO SMOOTH THE WAY FOR SINGAPORE PUBLIC AND PRIVATESECTOR INVESTMENT INTO CHINA SINGAPORE WILL TRY TO TRANSFER WHAT IT CALLS ITS DEVELOPMENT SOFTWARE TO SUZHOU AND IT WILL HELP THE CHINESE CITY SET UP A DEVELOPMENT AUTHORITY THAT WILL ZONE AND REGULATE THE TOWNSHIP SINGAPORE WILL SEND BUREAUCRATS TO SUZHOU TO HELP OUT SUZHOU WILL SEND OFFICIALS TO SINGAPORE TO BE TRAINED GOVERNMENT AGENCIES SUCH AS SINGAPORE'S ECONOMIC DEVELOPMENT BOARD AND TRADE DEVELOPMENT BOARD WILL HELP SELL SUZHOU OVERSEAS KEPPEL CHAIRMAN SIM KEE BOON SAID LOCATED ABOUT 50 MILES WEST OF SHANGHAI CHINA'S LARGEST CITY SUZHOU IS FAMOUS FOR ITS GARDENS CANALS AND PASTRIES IT HAS A POPULATION OF 600000 AND GROSS INDUSTRIAL OUTPUT REACHED 23 BILLION LAST YEAR THE SINGAPORE CONSORTIUM SAID IT WILL OWN 65 OF THE EQUITY IN THE JOINT VENTURE AND THE CHINESE SIDE WILL OWN THE REMAINING 35 THE PARTNERS AIM TO SIGN A DEFINITIVE JOINTVENTURE AGREEMENT BY THE END OF THE YEAR OTHER MEMBERS OF THE SINGAPORE GROUP ARE SINGAPORE GOVERNMENT HOLDING COMPANY TEMASEK HOLDINGS PTE LTD LISTED COMPANIES IN WHICH SINGAPORE DIRECTLY OR INDIRECTLY HOLDS A CONTROLLING STAKE INCLUDING STRAITS STEAMSHIP LAND LTD AND DBS LAND LTD COMMERCIAL ARMS OF SINGAPORE'S NATIONAL TRADES UNION CONGRESS AND LISTED AND CLOSELY HELD CONCERNS INCLUDING WUTHELAM HOLDINGS PTE WING TAI HOLDINGS LTD CITY DEVELOPMENTS LTD AND LUM CHANG HOLDINGS LTD THE JOINT VENTURE WILL ACQUIRE THE LAND FROM SUZHOU AND WILL BE ALLOWED TO RESELL IT OR LEASE IT THE JOINT VENTURE WILL HAVE 70 YEARS' TENURE ON ITS LAND WHICH MR SIM SAID IS UNUSUALLY LONG IN CHINA 9308130127 930813 MARKETING & MEDIA ADM RECRUITS GREEN GIANT TO SELL ITS HARVEST BURGER MINNEAPOLIS PILLSBURY INC AGREED TO MARKET ARCHER DANIELS MIDLAND CO'S ALLVEGETABLE HARVEST BURGER UNDER ITS GREEN GIANT LABEL A MOVE THAT WILL GREATLY EXPAND DISTRIBUTION OF THE MEATSUBSTITUTE PATTIES AIMED AT HEALTHCONSCIOUS CONSUMERS ADM DECATUR ILL DEVELOPED THE PRODUCT IN 1991 AND HAS BEEN SELLING IT ON A LIMITED BASIS CURRENTLY IN NINE US CITIES THE AGRICULTURALCOMMODITY PROCESSOR WHICH ISN'T GEARED TO CONSUMERPRODUCTS DISTRIBUTION SAID IT APPROACHED PILLSBURY TO TAKE ADVANTAGE OF ITS MARKETING AND DISTRIBUTION STRENGTH MINNEAPOLISBASED PILLSBURY IS A UNIT OF BRITAIN'S GRAND METROPOLITAN PLC WITH PILLSBURY AS EXCLUSIVE MARKETER FROZEN GREEN GIANT HARVEST BURGERS WILL BE SOLD IN PACKS OF FOURIN STYLES INCLUDING ORIGINAL SOUTHWESTERN ITALIAN AND BREAKFASTIN HALF THE US WITHIN A YEAR THE COMPANIES SAID THE PACKS MADE AND PACKAGED BY ADM WILL HAVE A SUGGESTED RETAIL PRICE OF 269 9308130126 930813 INTERNATIONAL STANDARD CHARTERED SHOWS STRONG HONG KONG PROFITS HONG KONG DESPITE WHISPERS THAT STANDARD CHARTERED PLC HAS GROWN SKITTISH ABOUT CHINA AND HONG KONG WHICH REVERTS TO CHINESE CONTROL IN 1997 THE BANK'S EXECUTIVES SAY JUST THE OPPOSITE IS TRUE HOPING TO PROVE IT THE BANK BROKE OUT THE PERFORMANCE OF ITS HONG KONG OPERATIONS IN ANNOUNCING ITS FIRSTHALF RESULTS YESTERDAY THE NUMBERS SHOW THAT ITS HONG KONG BUSINESS IS STILL BY FAR THE MOST PROFITABLE PART OF THE BANK THE HONG KONG UNIT'S PROFIT OF 1266 BILLION HONG KONG DOLLARS US1634 MILLION BEFORE CHARGES FOR BAD DEBTS ACCOUNTED FOR ABOUT 37 OF TOTAL EARNINGS IN DECEMBER THE BANK SOLD ITS INTEREST IN ITS NEW SIGNATURE BUILDING IN HONG KONG'S CENTRAL BUSINESS DISTRICT BUT STANDARD CHARTERED SAYS THAT THE TRANSACTION WAS PART OF ITS POLICY TO DIVEST ITSELF OF PROPERTY AROUND THE WORLD AND FOCUS ITS CAPITAL ON BANKING AND HAD NOTHING TO DO WITH JITTERS OVER HONG KONG'S FUTURE OVERALL STANDARD CHARTERED EARNED 169 MILLION 2485 MILLION BEFORE TAXES IN THE FIRST HALF NEARLY TRIPLE THE 59 MILLION IT EARNED A YEAR EARLIER THE PROFIT REFLECTS A 127 MILLION CHARGE FOR BAD DEBTS UP FROM A CHARGE OF 118 MILLION A YEAR EARLIER 9308130125 930813 LCI INTERNATIONAL INC WILL MAKE INVESTMENT IN STN OF TORONTO DUBLIN OHIO LCI INTERNATIONAL INC AGREED TO MAKE AN INVESTMENT IN STN INC OF TORONTO BECOMING THE LATEST US TELECOMMUNICATIONS CONCERN TO ENTER CANADA'S LONGDISTANCE MARKET LCI SAID IT WILL PAY STN A LONGDISTANCE COMPANY AS MUCH AS 168 MILLION FOR STN CONVERTIBLE DEBENTURES IF LCI EXERCISES ITS OPTION TO CONVERT THE DEBENTURES INTO STN COMMON STOCK THAT WOULD TRANSLATE INTO AN APPROXIMATELY 19 STAKE IN THE CANADIAN CONCERN LCI ALSO WILL PROVIDE STN WHICH STANDS FOR SMART TALK NETWORK WITH CUSTOMER BILLING CIRCUIT AND NETWORK MONITORING AND SWITCH ROUTING AMONG OTHER SERVICES UNDER THE AGREEMENT LCI WHICH IS BASED IN MCLEAN VA WITH ITS MAIN OPERATING UNIT IN DUBLIN OHIO MAY LATER ESTABLISH A SUBSTANTIAL POSITION IN STN OF AS MUCH AS 51 STN HOPES TO EXPAND RESIDENTIAL AND BUSINESS SERVICES IN CANADA THROUGH THE LCI TRANSACTION THE MOVE FOLLOWS SPRINT CORP'S DECISION EARLIER THIS MONTH TO ACQUIRE 25 OF CALLNET ENTERPRISES INC A LONGDISTANCE COMPANY IN CANADA AMERICAN TELEPHONE & TELEGRAPH CO AND MCI COMMUNICATIONS CORP MADE SIMILAR PACTS WITH OTHER LONGDISTANCE CARRIERS IN CANADA AFTER REGULATORS ORDERED THE CANADIAN LONGDISTANCE MONOPOLY BROKEN UP LAST YEAR H BRIAN THOMPSON LCI CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE TRANSACTION WILL STRENGTHEN LCI'S PRESENCE IN NORTH AMERICA AND LINK IT WITH AN AGGRESSIVE DYNAMIC COMPANY IN THE CANADIAN MARKETPLACE SEPARATELY LCI SAID IT AGREED TO ACQUIRE ALL OF THE ASSETS OF TELEDIAL AMERICA OF NORTH CAROLINA INC FOR 55 MILLION TELEDIAL AMERICA IS A CLOSELY HELD LONGDISTANCE COMPANY THAT OPERATES IN NORTH AND SOUTH CAROLINA GEORGIA AND TENNESSEE ADDITIONALLY LCI SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A CONVERTIBLE EXCHANGEABLE PREFERRED STOCK OFFERING OF 75 MILLION PLUS A 15 OVERALLOTMENT OPTION UNDERWRITERS ARE BEAR STEARNS & CO MERRILL LYNCH & CO ROBINSONHUMPHREY CO AND JEFFERIES & CO 9308130124 930813 WHO'S NEWS CIRCA PHARMACEUTICALS CIRCA PHARMACEUTICALS INC COPIAGUE NY KENNETH SIEGEL 36 MANAGING DIRECTOR OF WERTHEIM SCHRODER & CO WAS NAMED A DIRECTOR OF THIS DRUG COMPANY INCREASING THE BOARD TO SIX 9308130123 930813 BURLINGTON RESOURCES PLANS OFFER SEATTLE WASH BURLINGTON RESOURCES INC SAID IT WILL MAKE A TENDER OFFER ON OR BEFORE AUG 19 FOR THE OUTSTANDING SHARES OF THE PERMIAN BASIN ROYALTY TRUST AT 485 EACH BURLINGTON SAID IT ACQUIRED YESTERDAY 154 MILLION PERMIAN SHARES FOR 747 MILLION FROM FUND AMERICAN ENTERPRISES HOLDINGS INC BOOSTING ITS STAKE IN PERMIAN TO 33 THE NATURAL RESOURCES AND ENERGY HOLDING COMPANY SAID IT WAS SEEKING TO ACQUIRE PERMIAN BECAUSE IT IS AN ATTRACTIVE INVESTMENT 9308130122 930813 WHO'S NEWS CHESAPEAKE UTILITIES CORP CHESAPEAKE UTILITIES CORP DOVER DEL JIM M O'REILLY WAS ELECTED PRESIDENT OF CAPITAL DATA SYSTEMS INC THE INFORMATION TECHNOLOGY SERVICES UNIT OF THIS UTILITY COMPANY MR O'REILLY 45 YEARS OLD WAS FORMERLY VICE PRESIDENT OF MEMOREXTELEX CORP'S PERSONAL COMPUTING DIVISION HE SUCCEEDS H RANDOLPH CURRIN JR WHO WILL CONTINUE TO WORK WITH CAPITAL DATA SYSTEMS AS CHIEF TECHNOLOGY OFFICER 9308130121 930813 ECONOMY GASOLINE USE IS STILL SLUGGISH DESPITE MARKET EXPECTED DATA ON DEMAND APPEAR TO CONTRADICT ENERGY TRADERS' BELIEFS BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL DEMAND FOR MOTOR FUEL DESPITE THIS WEEK'S BIG RALLY IN THE GASOLINE MARKET ISN'T AS ROBUST AS ENERGY TRADERS THINK ACCORDING TO OIL INDUSTRY FIGURES TO BE RELEASED NEXT WEEK ON US PETROLEUM DEMAND FOR THE FIRST SEVEN MONTHS OF THE YEAR USE OF GASOLINE PREVIOUSLY DEPRESSED BY THE WEAK ECONOMY STILL IS SLUGGISH ALTHOUGH I WOULD LIKE TO BELIEVE THAT GASOLINE DEMAND IS GROWING WE ARE LOOKING AT A FRACTION OF A PERCENT INCREASE FOR JULY AND PROBABLY LESS THAN 1 FOR THE SEVEN MONTHS SAID EDWARD MURPHY DIRECTOR OF FINANCE AND STATISTICS FOR THE AMERICAN PETROLEUM INSTITUTE WHICH REPORTS THE OFFICIAL INDUSTRY FIGURES NEVERTHELESS THE API'S LATEST WEEKLY REPORT HAD SHOWED A BIG DROP OF 66 MILLION BARRELS IN GASOLINE INVENTORIES USING THESE FIGURES ENERGY BROKERS HAVE BEEN CALCULATING DEMAND FOR GASOLINE AT MORE THAN EIGHT MILLION BARRELS A DAY THAT IS CONTRIBUTING TO THE WIDELY HELD PERCEPTION THAT US USE OF GASOLINE SUDDENLY IS VERY STRONG AND THAT SUPPLIES COULD BECOME TIGHT AS A RESULT GASOLINE PRICES HAVE BEEN SURGING THIS WEEK ON THE NEW YORK MERCANTILE EXCHANGE HELPING TO FIRM WORLD OIL MARKETS PRICES ROSE AGAIN YESTERDAY WITH UNLEADED GASOLINE FOR SEPTEMBER DELIVERY SETTLING 06 CENT A GALLON HIGHER AT 5638 CENTS THAT WAS IN THE WAKE OF WEDNESDAY'S JUMP OF 215 CENTS A GALLON AND FUTURES PRICES ARE MORE THAN FOUR CENTS HIGHER FOR THE WEEK THE API WON'T ISSUE ITS MONTHLY ASSESSMENT OF US PETROLEUM SUPPLIES AND DELIVERIES FOR JULY UNTIL NEXT WEDNESDAY BUT IN AN INTERVIEW MR MURPHY SAID THAT ACCORDING TO PRELIMINARY DATA JULY GASOLINE DELIVERIES AVERAGED ABOUT 78 MILLION BARRELS A DAY THAT IS ONLY SLIGHTLY HIGHER THAN JULY 1992 DELIVERIES THE API'S TERM FOR DEMAND FOR THE FIRST SEVEN MONTHS OF 1993 MR MURPHY SAID THE API LIKELY WILL REPORT DELIVERIES OF ABOUT 73 MILLION OR 74 MILLION BARRELS A DAY UP LESS THAN 1 FROM A YEAR EARLIER IT IS TRUE THAT GASOLINE INVENTORIES TOOK A DROP LAST WEEK MR MURPHY SAID BUT THAT IS NOT UNUSUAL THIS TIME OF THE YEAR NOR SHOULD THE LATEST INVENTORY FIGURE OF 2086 MILLION BARRELS BE CONSIDERED LOW HE SAID ACCORDING TO MR MURPHY THE INVENTORY FIGURE DOESN'T INCLUDE NEARLY 15 MILLION BARRELS OF MTBE AN ADDITIVE THAT WILL BE REQUIRED TO HELP GASOLINE MEET ENVIRONMENTAL REQUIREMENTS WITH THIS ADDED TO MOTORFUEL SUPPLIES INVENTORIES ROSE TO THE HIGHEST LEVEL IN YEARS ACTUAL DEMAND FOR GASOLINE IS BEING FURTHER DISTORTED BY THIS YEAR'S STATISTICAL ADJUSTMENTS BY THE API AND THE US ENERGY DEPARTMENT TO ACCOUNT FOR THE USE OF ETHANOL AND OTHER BLENDING COMPONENTS THESE BLENDING MATERIALS WERE BEING USED PREVIOUSLY BUT WEREN'T INCLUDED IN THE STATISTICS FOR GASOLINE DEMAND YEAREARLIER FIGURES ALSO HAVE BEEN REVISED TO REFLECT THE BLENDING COMPONENTS THE NET EFFECT ADDS 120000 BARRELS A DAY TO GASOLINE DELIVERIES MAKING THEM SEEM HIGHER THAN THEY ACTUALLY ARE MR MURPHY SAID AS AN EXAMPLE HE CITED JULY 1992 GASOLINE DELIVERIES OF 7639000 BARRELS A DAY WHICH HAVE BEEN REVISED UPWARD TO 7766000 AFTER THE STATISTICAL ADJUSTMENT 9308130120 930813 CANADIAN GOVERNMENT BOND SALE OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION WEDNESDAY 180 BILLION CANADIAN DOLLARS US138 BILLION OF 65 BONDS DUE SEPT 1 1998 THE NEW BONDS WILL BE USED TO REDEEM IN PART C245 BILLION OF GOVERNMENT BONDS MATURING SEPT 1 9308130119 930813 CLINTON REMOVES THE BAN ON HIRING AIR CONTROLLERS WASHINGTON THE CLINTON ADMINISTRATION LIFTED A BAN ON REHIRING ANY OF THE 11400 AIR TRAFFIC CONTROLLERS WHO WERE FIRED IN 1981 FOR PARTICIPATING IN AN ILLEGAL STRIKE TRANSPORTATION SECRETARY FEDERICO PENA SAID THE ACTION SETS A NEW TONE FOR THE RELATIONSHIP BETWEEN GOVERNMENT AND LABOR HE ADDED WE CANNOT CONDONE ILLEGAL STRIKES BUT THE CONTROLLER EMPLOYMENT BAN LASTED TOO LONG AND BECAME A SYMBOL OF DIVISIVENESS THE FEDERAL AVIATION ADMINISTRATION WHICH CURRENTLY HAS A HIRING FREEZE SAID CONTROLLERS SEEKING TO BE REHIRED MUST APPLY FOR JOBS UNDER THE SAME RULES AS OTHER APPLICANTS MEANING THEY MUST RECEIVE MEDICAL AND SECURITY CLEARANCES AND UNDERGO TRAINING AND TESTING 9308130118 930813 BCE'S BELL MOBILITY PAGING UNIT TORONTO BELL MOBILITY PAGING A UNIT OF BCE MOBILE COMMUNICATIONS INC SAID IT IS IN TALKS TO ACQUIRE THE ONTARIO AND QUEBEC OPERATIONS OF MOTOROLA CANADA'S PAGING BUSINESS TERMS WEREN'T DISCLOSED BUT BELL MOBILITY SAID THE PURCHASE WOULD ADD 35000 PAGERS TO ITS CURRENT BASE OF MORE THAN 150000 ONE PAGER PRODUCES AROUND 240 CANADIAN DOLLARS US184 OF RENTAL REVENUE A YEAR INDUSTRY SOURCES SAID MOTOROLA CANADA A UNIT OF MOTOROLA INC SCHAUMBURG ILL ALSO HAS PAGING OPERATIONS IN BRITISH COLUMBIA BCE MOBILE MONTREAL OPERATES SEVERAL MOBILE COMMUNICATIONS SERVICES 9308130117 930813 SURVEY INDICATES PESSIMISM ABOUT BUSINESS CONDITIONS NEW YORK FOR THE THIRD STRAIGHT MONTH MANUFACTURERS AND CONSTRUCTION EXECUTIVES EXPRESSED PESSIMISM ABOUT BUSINESS CONDITIONS ACCORDING TO TWO SURVEYS BY DUN & BRADSTREET CORP IT IS NOW CLEAR THAT THE DECLINE IN OPTIMISM REFLECTS A FUNDAMENTAL WEAKNESS IN THE MANUFACTURING SECTOR MORE THAN JUST ANXIETY ABOUT THE ECONOMY SAID DOUGLAS P HANDLER D&B'S MANAGER OF ECONOMETRIC ANALYSIS IN THE SURVEY OF 1000 MANUFACTURERS D&B'S INDUSTRIAL SENTIMENT INDEX MEASURING EXPECTATIONS FOR THE COMING THREE MONTHS FELL ONE POINT IN JULY TO 17 EXPECTATIONS FOR PRODUCTION SLIPPED TWO POINTS TO 36 EXPECTATIONS FOR RAISING PRICES FELL TWO POINTS TO 11 THE INDEX REPRESENTS THE PERCENTAGE OF RESPONDENTS EXPECTING INCREASES IN INDICATORS SUCH AS PRODUCTION MINUS THE PERCENTAGE EXPECTING DECREASES CONSTRUCTION EXECUTIVES REPORTED LOWER EXPECTATIONS FOR THE THIRD MONTH IN A ROW FOR INCREASES IN NEW ORDERS THE NEW ORDERS INDEX FELL EIGHT POINTS TO 32 THE SURVEY OF 200 CONSTRUCTION FIRMS FOUND GREATER EXPECTATIONS OF RAISING PRICES IN THE NEXT THREE MONTHS AS THE PRICE INDEX ROSE TWO POINTS TO 14 FOR THE FIRST TIME SINCE D&B BEGAN ITS SURVEY IN 1990 ONE IN FOUR FIRMS SAID ORDER BOOKS WERE ABOVE AVERAGE 9308130116 930813 BRISTOLMYERS HOSPITAL GROUP SET PACT GIVING DRUG CONCERN PREFERRED STATUS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BRISTOLMYERS SQUIBB CO SAID IT SIGNED A MULTIBILLIONDOLLAR FIVEYEAR CONTRACT TO ESTABLISH PREFERRED STATUS FOR ITS PRODUCTS WITH THE NATION'S LARGEST ALLIANCE OF NOTFORPROFIT HOSPITALS THE AGREEMENT WITH AMERICAN HEALTHCARE SYSTEMS SAN DIEGO HAS THE POTENTIAL TO BECOME THE LARGEST SINGLECUSTOMER CONTRACT EVER FOR BRISTOLMYERS SAID JAMES J MAUZEY PRESIDENT OF THE COMPANY'S CORPORATE HOSPITAL ACCOUNTS THE CONTRACT WHICH BEGINS SEPT 1 IS MUCH BROADER AND DEEPER THAN BRISTOL'S PREVIOUS AGREEMENTS WITH AMERICAN HEALTHCARE AND INCLUDES PHARMACEUTICALS INFANT FORMULAS DIAGNOSTIC AGENTS ORTHOPEDIC PRODUCTS AND OTHER MEDICAL SUPPLIES THE COMPANY WOULDN'T REVEAL THE CONTRACT'S SPECIFIC DOLLAR VALUE RONALD NORDMANN A PAINEWEBBER ANALYST SAID THIS IS A VERY IMPORTANT AGREEMENT BECAUSE IT BUNDLES PRODUCTS FROM ACROSS DIFFERENT BUSINESSES OF BRISTOLMYERS OTHER COMPANIES HAVE CUT MORE LIMITED DEALS THAT MIGHT INCLUDE JUST PRESCRIPTION DRUGS BUT WHAT MAKES THIS DIFFERENT IS THE BREADTH OF THE PRODUCT LINE AND OPPORTUNITY TO OFFER DISCOUNTS BASED ON TOTAL VOLUME ACROSS BUSINESS AREAS MR NORDMANN SAID WE EXPECT THE VOLUME OF BRISTOLMYERS' PRODUCTS PURCHASED BY OUR GROUP TO RISE VERY SIGNIFICANTLY SAID JACK A BERNARD AMERICAN HEALTHCARE VICE PRESIDENT OF CORPORATE PLANNING AND MARKETING AMERICAN HEALTHCARE WHICH REPRESENTS MORE THAN 1000 NOTFORPROFIT HOSPITALS IS THE LARGEST HOSPITAL GROUPPURCHASER OF SUPPLIES AND PHARMACEUTICALS IN THE COUNTRY HE ADDED ALTHOUGH FAR LESS AGGRESSIVE THAN MERCK & CO'S PROPOSED 6 BILLION PURCHASE OF MEDCO CONTAINMENT SERVICES INC THE BRISTOLMYERS AGREEMENT WITH AMERICAN HEALTHCARE REPRESENTS ANOTHER STRATEGY BY PHARMACEUTICAL COMPANIES TO WORK MORE CLOSELY WITH BIG BUYERS WHO CONTROL AN INCREASINGLY LARGE CHUNK OF THE MARKET SUCH ARRANGEMENTS USUALLY INCLUDE ECONOMIC INCENTIVES SUCH AS STEEP DISCOUNTS FOR THE BUYER BRISTOLMYERS' MR MAUZEY WOULDN'T SPECIFY THE SIZE OF ITS DISCOUNTS TO AMERICAN HEALTHCARE BUT SAID THE DISCOUNTS WILL INCREASE WHEN CERTAIN SALES TARGETS ARE MET BUT IN RETURN FOR THE DISCOUNTS BRISTOLMYERS BECOMES A PREFERRED VENDOR TO THE MEMBER HOSPITALS ACCORDING TO MONROE TROUT CHAIRMAN OF AMERICAN HEALTHCARE THAT MEANS HOSPITALS ARE OBLIGATED TO BUY BRISTOLMYERS' PRODUCTS RATHER THAN THOSE OF COMPETITORS HE SAID THE ORGANIZATION HAS AGREEMENTS WITH OTHER PHARMACEUTICAL COMPANIES INCLUDING BRISTOLMYERS' CHIEF RIVAL MERCK IN CASES WHERE THE PREFERRED VENDORS HAVE COMPETING PRODUCTS THE HOSPITALS CAN SELECT ONE OR BOTH DR TROUT SAYS STILL BRISTOLMYERS CAN EXPECT TO INCREASE ITS MARKET SHARE WITH AMERICAN HEALTHCARE WITHIN THE FIRST YEAR DR TROUT SAID AMONG THE OTHER ADVANTAGES SUCH AGREEMENTS CALLED CORPORATE PARTNERSHIPS OFFER INCLUDE ACCESS TO TOP HOSPITAL OFFICIALS INCLUDING PHARMACISTS AND OTHER PURCHASING MANAGERS HE SAID SOME CORPORATE PARTNERS HAVE DOUBLED THEIR SALES TO THE GROUP BECAUSE OF THE AGREEMENTS HE ADDED SALES OF BRISTOLMYERS LAST YEAR WERE 1116 BILLION OF WHICH PHARMACEUTICALS MEDICAL DEVICES AND INFANT AND OTHER NUTRITIONAL PRODUCTS REPRESENTED ABOUT 9 BILLION NEWS OF THE CONTRACT CAME AFTER MARKETS CLOSED YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE SHARES OF BRISTOLMYERS CLOSED DOWN 25 CENTS AT 51125 9308130115 930813 WHO'S NEWS ROBERT HAFT SUES FATHER OVER BEING OUSTED AT DART NEW YORK ROBERT HAFT SUED HIS FATHER FOR BREACH OF CONTRACT IN THE WAKE OF BEING FIRED FROM DART GROUP AND TWO COMPANIES IT CONTROLS THE YOUNGER HAFT'S LAWSUIT AGAINST HERBERT HAFT CHAIRMAN WHO OUSTED ROBERT FROM THE FAMILY COMPANIES WHEN THE SCION PUSHED TOO HARD IN HIS EFFORTS TO TAKE CONTROL OF THE COMPANY CAPS A WEEK OF LITIGATION AND NAMECALLING BY THE FEUDING HAFT FAMILY ON TUESDAY GLORIA HAFT 66 YEARS OLD SUED HERBERT HAFT 72 TO END THEIR 45YEAR MARRIAGE ACCUSING HIM OF PHYSICAL ABUSE ADULTERY AND ILLEGAL MANIPULATION OF THE FAMILY'S BUSINESS HOLDINGS SHE IS SEEKING CONTROL OF PART OF THE FAMILY'S RETAILING AND REALESTATE EMPIRE AS THE HOLDER OF 57 OF THE VOTING SHARES IN DART BASED IN LANDOVER MD THE SENIOR HAFT HAS EFFECTIVELY REIGNED OVER ALL THREE COMPANIES IN A CIVIL COMPLAINT FILED IN A DELAWARE FEDERAL COURT ROBERT HAFT 40 CONTENDED THAT DART AND ITS AFFILIATES CROWN BOOKS CORP AND TRAK AUTO CORP BREACHED THEIR LONGTERM CONTRACTS WITH HIM AFTER THEY CUT OFF HIS SALARY WHEN HE WAS FIRED AS CHAIRMAN OF CROWN PRESIDENT OF DART AND DIRECTOR AT ALL THREE COMPANIES AN ATTORNEY FOR DART DECLINED TO COMMENT 9308130114 930813 MEDICINE US HOSPITALS SEE OPPORTUNITY IN MEXICO BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL SURGEON HUGO VILLAR RECENTLY OPERATED ON A 60YEAROLD PATIENT WITH ESOPHAGEAL CANCER THAT WAS ROUTINE ENOUGH BUT INSTEAD OF PERFORMING THE OPERATION AT UNIVERSITY MEDICAL CENTER IN TUCSON ARIZ WHERE HE USUALLY OPERATES DR VILLAR FLEW TO HERMOSILLO MEXICO THERE HE ASSISTED A MEXICAN SURGEON WHO HAD CONTACTED HIM ON A TOLLFREE CONSULTATION LINE THAT UNIVERSITY MEDICAL RECENTLY EXTENDED INTO NORTHERN MEXICO THIS IS A MAJOR EFFORT WE ARE DOING SAYS DR VILLAR WHO ALSO SEES A STEADY STREAM OF MEXICAN REFERRAL PATIENTS IN TUCSON IF WE DON'T DO IT WE MISS A BIG OPPORTUNITY FACED WITH MOUNTING COSTCUTTING PRESSURES AT HOME AND LURED BY THE PROSPECT OF AN IMPROVED MEXICAN ECONOMY MORE AND MORE US HOSPITALS ARE TRYING TO DRUM UP BUSINESS IN MEXICO DESPITE SUBSTANTIAL RISKS THEY HAVE GONE SOUTH OF THE BORDER IN SEARCH OF CONSULTING CONTRACTS INVESTMENT OPPORTUNITIES AND MOST IMPORTANTLY PATIENTS ALMOST WITHOUT TRYING HOSPITALS FROM SAN DIEGO TO HOUSTON HAVE LONG ATTRACTED A SMALL BUT STEADY STREAM OF WEALTHY MEXICANS WHO HAVE COME NORTH PAYING TOP DOLLAR FOR PHYSICALS SECOND OPINIONS AND SURGERY SUCH PATIENTS HAVE RARELY ACCOUNTED FOR MORE THAN A SMALL PERCENTAGE OF ANY HOSPITAL'S REVENUES BUT WITH MANAGEDCARE NETWORKS AND THIRDPARTY PAYERS PRESSURING THEM TO LOWER THEIR FEES FOR US PATIENTS HOSPITALS HAVE BEGUN PURSUING THOSE MEXICAN CASH CUSTOMERS LIKE A RARE AND VALUED COMMODITY SOMEWHERE ALONG THE LINE US HOSPITALS WOKE UP AND REALIZED THAT THEY HAD SOMETHING SAYS LARRY MEAGHER VICE PRESIDENT OF INTERNATIONAL SERVICES AT BAYLOR UNIVERSITY MEDICAL CENTER DALLAS NOW THEY ARE TRYING TO DEVELOP IT BAYLOR HAS OPENED AN OFFICE THAT HELPS INTERNATIONAL PATIENTS SECURE TRAVEL DOCUMENTS TRANSPORTATION AND TRANSLATION SERVICES THROUGH TRAVEL AGENTS SEVERAL HOUSTON HOSPITALS HAVE BEGUN MARKETING INTERNATIONAL TRAVEL PACKAGES THAT IN ADDITION TO PROMOTING SHOPPING OPPORTUNITIES AT THE CITY'S MAMMOTH GALLERIA MALL INCLUDE AIRFARE HOTEL ACCOMMODATIONS AND AN ANNUAL MEDICAL CHECKUP ELSEWHERE GOOD SAMARITAN HOSPITAL IN PHOENIX IS PROMOTING ITS AIREVACUATION SERVICE AMONG MEXICAN PHYSICIANS TUCSON MEDICAL CENTER MAY SET UP A MEXICAN BUSINESS OFFICE TO HANDLE PREADMISSION PAPERWORK AND TINY 49BED HOLY CROSS HOSPITAL NOGALES ARIZ HAS BEGUN ADVERTISING IN THE HERMOSILLO YELLOW PAGES SO FAR THE MEXICAN GOVERNMENT AND MOST MEXICAN PHYSICIANS HAVE WELCOMED THE ATTENTION DESPITE THE POTENTIAL LOSS OF BUSINESS TO U S HEALTHCARE PROVIDERS BUT THE ECONOMIC ROAD SOUTH ISN'T WITHOUT POTENTIAL POTHOLES IN THE PAST US HOSPITAL CONCERNS THAT HAVE TRIED TO MANAGE MEXICAN FACILITIES HAVE HAD TROUBLE BUYING SPARE PARTS FOR HIGHTECH EQUIPMENT AND DEALING WITH LABOR LAWS THAT MADE LAYOFFS ALMOST IMPOSSIBLE IN THE 1980S HUMANA INC GAVE UP ON ITS MEXICO CITY HOSPITAL AFTER THE MEXICAN ECONOMY WENT INTO A TAILSPIN AMID FALLING OIL PRICES AND THE PESO'S DEVALUATION EVEN WEALTHY MEXICANS COULDN'T AFFORD PRIVATE CARE THAT BUSINESS JUST WENT THROUGH THE FLOOR SAYS MIKE WILLIAMSON EXECUTIVE VICE PRESIDENT OF INTERNATIONAL PROGRAMS AT HOUSTON'S METHODIST HOSPITAL SYSTEM MOREOVER IN A NATION WHERE THE AVERAGE MINIMUM WAGE IS LESS THAN 450 A DAY THE SIZE OF THE POTENTIAL MARKET REMAINS UNCERTAIN WHILE SOME ANALYSTS ESTIMATE THAT MORE THAN 10 OF MEXICO'S 90 MILLION CITIZENS CAN AFFORD PRIVATE HOSPITAL CARE FEW HAVE EXAMINED THE MEXICAN HEALTHCARE MARKET IN GREAT DETAIL AND GOVERNMENT FIGURES ON BOTH SIDES OF THE BORDER ARE SPARSE STILL DAVID WARNER A UNIVERSITY OF TEXAS PROFESSOR SPECIALIZING IN HEALTHCARE ISSUES NOTES THAT US HOSPITALS ALREADY POSSESS THE EQUIPMENT AND PROFESSIONAL EXPERTISE AND THAT THE COST OF MARKETING IN MEXICO IS MARGINAL THE FACT OF THE MATTER IS THAT A LOT OF THESE FOREIGN PATIENTS ARE THE ONLY ONES WHO PAY RETAIL ANYMORE HE SAYS IF YOU JUST GET 10 BYPASS PATIENTS AT 20000 A WHACK THAT'S 200000 AND HALF TO THREEQUARTERS OF THAT GOES TO THE BOTTOM LINE MEANWHILE US HOSPITALS HAVE TAKEN STEPS TO AVOID PROBLEMS OF THE PAST EAGER TO PREVENT A BACKLASH FROM THE MEXICAN MEDICAL COMMUNITY OVER THE POTENTIAL LOSS OF BUSINESS MANY HAVEN'T MARKETED THEIR SERVICES DIRECTLY TO MEXICAN CONSUMERS INSTEAD THEY HAVE CONCENTRATED ON FORGING REFERRAL RELATIONSHIPS WITH MEXICAN PHYSICIANS SOUTHWESTERN HOSPITALS ARE SENDING THEIR OWN SPECIALISTS TO MEXICAN HOSPITALS TO LECTURE ON NEW TECHNOLOGY HIRING WELLKNOWN MEXICAN PHYSICIANS AS CONSULTANTS AND SETTING UP TOLLFREE CONSULTATION LINES IN MEXICO THEY ARE ALSO PLAYING HOST TO HUNDREDS OF MEXICAN DOCTORS FOR FREE CONTINUINGEDUCATION CLASSES HERE AND THEN STAYING IN TOUCH THROUGH SPANISHLANGUAGE NEWSLETTERS AND VIDEOS THIS YEAR MORE THAN 200 MEXICAN DOCTORS AND HOSPITAL OFFICIALS ATTENDED A WEEKLONG MEETING PUT ON BY DALLAS MEDICAL RESOURCE A CONSORTIUM OF DALLAS HOSPITALS THAT HAS SET UP A RELATIONSHIP WITH SEVERAL HOSPITALS AND PHYSICIAN GROUPS IN MONTERREY THE LARGEST METROPOLITAN MARKET IN NORTHEASTERN MEXICO ALREADY FACING GROWING COMPETITION IN MONTERREY FROM OTHER TEXAS HOSPITAL GROUPS IN HOUSTON SAN ANTONIO AND CORPUS CHRISTI DALLAS MEDICAL RESOURCE IS INSTALLING A COMPUTER LINK SO THAT MONTERREY DOCTORS CAN CONSULT THEIR DALLAS COLLEAGUES WE DO NOT HAVE THE TECHNOLOGY AND ALL THE EQUIPMENT FOR VERY HIGHLY SOPHISTICATED PROBLEMS IN MEDICINE SAYS CONSTANTION PADILLA CHIEF OF STAFF AT MONTERREY'S HOSPITAL JOSE A MUGUERZA SA WE THINK IT IS GOING TO BE VERY HELPFUL FOR US AND OUR PATIENTS MEANWHILE AS THE MEXICAN GOVERNMENT MOVES TO MODERNIZE AND PRIVATIZE A HEALTHCARE SYSTEM LONG DOMINATED BY GOVERNMENTRUN HOSPITALS AND CLINICS SOME MEXICAN INVESTMENT GROUPS HAVE HIRED US HOSPITALS TO HELP THEM DEVELOP AND RUN NEW PRIVATE FACILITIES SAN DIEGOBASED SCRIPPS MEMORIAL HOSPITALS FOR INSTANCE HOPES TO MANAGE THE HOSPITAL IT IS HELPING MEXICAN INVESTORS AND PHYSICIANS DEVELOP IN AGUASCALIENTES STATE BAYLOR'S ARCHITECTURAL SUBSIDIARY HAS DESIGNED NEW HOSPITALS IN HERMOSILLO AND SALTILLO MEXICO AND DALLASBASED INTERNATIONAL HOSPITAL CORP A SMALL PRIVATE INVESTMENT GROUP HAS BEGUN SEEKING US INVESTORS TO PURCHASE OWNERSHIP STAKES IN MEXICAN FACILITIES WITH OR WITHOUT THE PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT MOST HOSPITAL EXECUTIVES EXPECT INTEREST AND INVESTMENT IN THE MEXICAN MARKET TO GROW ESPECIALLY WITH THE CLINTON ADMINISTRATION POISED TO INTRODUCE HEALTHCARE REFORMS THAT COULD DRASTICALLY CHANGE THE WAY HOSPITALS DO BUSINESS IN THIS COUNTRY I THINK EVERYBODY IS LOOKING INTERNATIONAL SAYS VIVIAN ROSE BUSINESS DEVELOPMENT DIRECTOR AT HOUSTON'S HERMANN HOSPITAL THAT IS THE ONLY THING THAT IS NOT GOING TO BE AFFECTED CONSULTING ON DEVELOPMENT OF 80BED HOSPITAL IN AGUASCALIENTES STATE TRAINING MEXICAN NURSES AND MEDICAL TECHNICIANS SEMINARS FOR MEXICAN PHYSICIANS CONTINUING EDUCATION FOR MEXICAN PHYSICIANS IN BOTH COUNTRIES TOLLFREE TELEPHONE CONSULTATION LINE INTO MEXICO AIR TRANSPORT SERVICE SEMINARS FOR VISITING MEXICAN PHYSICIANS AIR TRANSPORT SERVICE INTO MEXICO SPANISHLANGUAGE BROCHURES MARKETING TO ARIZONA EMPLOYERS WITH MEXICAN PLANTS CONTINUING EDUCATION CLASSES FOR MEXICAN PHYSICIANS TRANSLATION SERVICES LABORATORY SERVICES FOR MEXICAN HOSPITALS YELLOW PAGES ADVERTISING OBSERVATIONAL FELLOWSHIPS FOR MEXICAN DOCTORS TRAVEL SERVICES TOLLFREE CONSULTATION LINE BUILDING COMPUTER LINK WITH MONTERREY MEDICAL GROUP CONTINUING EDUCATION FOR MEXICAN PHYSICIANS PHYSICIAN EXCHANGES TRAVEL AND TRANSLATION SERVICES FOREIGN NEWSPAPERS FOR PATIENTS 9308130113 930813 CORPORATE FOCUS TEXTRON CONSIDERS SELLING ITS MOST PROFITABLE BUSINESSES FINANCIAL UNITS WOULD GIVE WAY TO MORE COMMERCIAL MANUFACTURING BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL PROVIDENCE RI IN RATIONALIZING ASSETS CONGLOMERATES USUALLY FOLLOW A PREDICTABLE PATTERN OF SELLING OFF THEIR LEAST PROFITABLE UNITS AND RIDING WITH THE WINNERS TEXTRON INC IS GETTING READY TO TURN THAT IDEA UPSIDE DOWN TOP OFFICIALS SAY TEXTRON IS CONSIDERING SELLING OFF ALL OR PART OF ITS FINANCE AND INSURANCE SUBSIDIARIES LATELY THE MOST PROFITABLE UNITS IN A DIVERSE PORTFOLIO AND BUYING MORE MANUFACTURING ASSETS THE FIRST MOVE IN THIS DIRECTION COULD COME AS EARLY AS NEXT WEEK INSIDERS SAY IF THE STRATEGY SUCCEEDS IT WILL FIRMLY PLACE THE STAMP OF JAMES HARDYMON CHAIRMAN AND CHIEF EXECUTIVE OFFICER ON A COMPANY THAT WAS ONE OF THE FIRST US CONGLOMERATES ALTHOUGH MR HARDYMON HAS BEEN CHIEF EXECUTIVE FOR NEARLY TWO YEARS TEXTRON TODAY IS STILL ESSENTIALLY THE COMPANY SHAPED BY HIS PREDECESSOR BF BEV DOLAN WHO SOLD OFF MANY MANUFACTURING UNITS TEXTRON'S FINANCIAL UNITS AVCO FINANCIAL SERVICES CORP AND PAUL REVERE INSURANCE CO PROVIDED 43 OF EARNINGS LAST YEAR AND 33 OF SALES BUT MR HARDYMON SAYS THE UNITS ARE HIGHLY SALABLE AND DON'T PERFECTLY FIT HIS IDEA OF WHERE TEXTRON SHOULD BE GOING IT TAKES SO MUCH EQUITY TO SUPPORT THE GROWTH OF THOSE BUSINESSES THAT THEY DON'T IMPROVE CASH FLOW SAYS MR HARDYMON WHO BELIEVES CASH FLOW IS A KEY MEASURE OF SUCCESS TO GET THE RETURNS AND CASH FLOWS WE WANT AND PROVIDE FLEXIBILITY IN ACQUISITIONS YOU'LL SEE US LIGHTEN UP IN FINANCIAL SERVICES DOWN THE ROAD WE'LL BE BIGGER IN COMMERCIAL MANUFACTURING HE ADDS WHEN THERE'S NO TIMETABLE HE SAYS THE COMPANY HAS DECIDED TO AVOID CONSUMERGOODS MANUFACTURING BEFORE TEXTRON SHED TWO DOZEN UNITS THAT MAKE EVERYTHING FROM WATCH BANDS TO FLATWARE IN THE 1980S IT WAS A LAGGARD EMERGING WITH A CLEARER FOCUS ON AEROSPACE AUTO PARTS AND FINANCIAL SERVICES IT HAS HAD IMPROVED YEARONYEAR EARNINGS FOR 15 CONSECUTIVE QUARTERS AMONG CONGLOMERATES TEXTRON IS IN THE IMPROVING CATEGORY AND GETTING CLOSER TO THE STAR CATEGORY SAYS SIDNEY J HELLER WHO FOLLOWS THE COMPANY FOR LEHMAN BROTHERS INC YOU'LL SEE SUBSTANTIAL EARNINGS GROWTH THOUGH IT WILL BE SOMEWHAT DILUTED BY DEFENSE DECLINES SAYS JACK BLACKSTOCK OF FIRST BOSTON CORP LAST YEAR EARNINGS BEFORE AN ACCOUNTING CHANGE ROSE 7 TO 3241 MILLION OR 366 A SHARE FROM 2995 MILLION OR 342 A SHARE REVENUE ROSE 6 TO 835 BILLION FROM 784 BILLION TEXTRON STOCK WAS QUOTED AT 56 A SHARE UP 25 CENTS IN LATE NEW YORK STOCK EXCHANGE TRADING MR HARDYMON IS DRIVING TO LOWER THE RATIO OF DEBT TO TOTAL CAPITAL TO ABOUT 35 FROM 47 TODAY AT THE SAME TIME HE WANTS TO MOVE THE COMPANY'S RETURN ON EQUITY UP TO THE HIGHER TEENS FROM 14 TODAY TO DO THAT THERE WILL HAVE TO BE SOME RESTRUCTURING SOME DIVESTITURES AND SOME ACQUISITIONS HE SAYS ALTHOUGH MR HARDYMON GAINED A REPUTATION AS A MAN DEVOTED MAINLY TO IMPROVED OPERATIONS HE SURPRISED WALL STREET WITH THE PURCHASE OF CESSNA AIRCRAFT CO FROM GENERAL DYNAMICS CORP FOR 600 MILLION LAST YEAR THAT WAS FOLLOWED BY A 138 MILLION PURCHASE OF THE PLASTICS OPERATIONS OF CHRYSLER CORP'S ACCUSTAR DIVISION THIS YEAR BOLSTERING TEXTRON'S ALREADY LARGE AUTO PARTS UNIT IN A SIGN THAT THERE'S MORE TO COME MR HARDYMON SAYS HE'S RELYING ON THOMAS P HOLLOWELL A NORTH CAROLINA INVESTMENT BANKER HIRED TO MANAGE CORPORATE DEVELOPMENT LAST YEAR IT WAS IMPORTANT TO GET HOLLOWELL HE'S MORE OF AN ENTREPRENEUR IN HIS THINKING SAYS MR HARDYMON TEXTRON HAS ALSO ADDED LEWIS B CAMPBELL 47 WHO JOINED AS MR HARDYMON'S NO 2 LAST SEPTEMBER FROM GENERAL MOTORS CORP WHERE HE HEADED THE TRUCK DIVISION JACK MODZELEWSKI A CONGLOMERATE ANALYST WITH PAINEWEBBER SAYS SOME INVESTORS STILL REGARD TEXTRON AS TOO DEPENDENT ON DEFENSE BUSINESS BUT PENTAGON CUTS AND TEXTRON COMMERCIAL ACQUISITIONS REDUCED DEFENSE REVENUE TO UNDER 20 OF THE COMPANY'S TOTAL FROM 40 IN 1988 EXCEPT FOR THE LYCOMING DIVISION WHICH MAKES TANK ENGINES AND HAS SHRUNK DRASTICALLY MR HARDYMON SAYS MOST OF TEXTRON'S DEFENSE BUSINESS IS STEADY NO INDIVIDUAL PROGRAM NOW AMOUNTS TO MORE THAN 250 MILLION A YEAR PROVIDING SOME DIVERSITY MEANWHILE TEXTRON IS BIDDING FOR POTENTIALLY BIG FUTURE CONTRACTS CESSNA IS VYING FOR A 735 BILLION CONTRACT TO BUILD JET TRAINERS FOR THE NAVY AND AIR FORCE THAT WILL BE AWARDED IN EARLY 1995 TEXTRON'S BELL HELICOPTER UNIT DERIVED 40 OF ITS 1992 SALES OF ABOUT 900 MILLION FROM GOVERNMENT CONTRACTS BELL SHARES A 2 BILLION DEVELOPMENT CONTRACT WITH BOEING CO FOR THE V22 OSPREY TILTROTOR PLANE THE OSPREY COULD FALL PREY TO FUTURE DEFENSE CUTS ALTHOUGH THE MARINE CORPS RECENTLY REITERATED ITS DESIRE FOR THE PLANE TEXTRON TOOK LOSSES ON OSPREY THROUGH LAST YEAR BECAUSE OF 175 MILLION IN COST OVERRUNS BUT ITS CONTRACT HAS BEEN CONVERTED TO A COSTPLUS BASIS ENSURING PROFITS AS IT BUILDS SIX PROTOTYPES THROUGH 1997 SALES OF LIGHT COMMERICAL HELICOPTERS ARE UP CESSNA WITH 1992 REVENUE OF ABOUT 750 MILLION DIDN'T CONTRIBUTE MUCH TO EARNINGS IN 1992 BUT PROFITABILITY WILL BE UP THIS YEAR MR HARDYMON SAYS RUSSELL MEYER PRESIDENT OF CESSNA SAYS IT WILL SELL 120 BUSINESS JETS THIS YEAR UP FROM 100 LAST YEAR SALES HAVE BEEN AIDED BY NEW MODELS INCLUDING THE 2 MILLION CITATIONJET WHICH CESSNA SAYS IS THE CHEAPEST BUSINESS JET AVAILABLE TEXTRON STILL HAS AN ARRAY OF COMMERCIAL MANUFACTURING COMPANIES INCLUDING HOMELITE CHAIN SAWS EZGO GOLF CARTS AND JACOBSEN LAWN MOWERS BUT MORE THAN HALF THE BUSINESS THIS YEAR WILL BE IN AUTOMOTIVE SUPPLIES WITH THE ACCUSTAR OPERATIONS TEXTRON HAS BECOME THE BIGGEST INDEPENDENT SUPPLIER OF PLASTIC INTERIOR PARTS REGISTERING NEARLY 800 MILLION IN ANNUAL SALES IT CLAIMS A COMPETITIVE EDGE AS ONE OF THE FEW COMPANIES THAT CAN PROVIDE A COMPLETE INTERIOR FOR A CAR IT ALREADY PROVIDES INTEGRATED INTERIORS FOR SOME CADILLAC AND CHRYSLER MODELS ONE NAGGING PROBLEM IN TEXTRON'S FASTENER BUSINESS IS AVDEL PLC WHICH WAS BOUGHT FOR 250 MILLION IN 1989 AFTER TEXTRON PAID FOR IT THE FEDERAL TRADE COMMISSION STAFF COMPLAINED ABOUT A REDUCTION IN FASTENER INDUSTRY COMPETITION AN FTC JUDGE OVERRULED THE STAFF BUT THE FULL COMMISSION IS SEEKING A SETTLEMENT MEANWHILE TEXTRON ONLY GETS TO TAKE DIVIDENDS RANGING FROM 3 MILLION TO 6 MILLION A YEAR AND CAN'T TRY TO MANAGE AVDEL OR CONSOLIDATE ITS SALES AND EARNINGS TEXTRON EMPLOYEES OTHER THAN MR HARDYMON CAN'T EVEN VISIT THE COMPANY WE'RE PUSHING FOR A RESOLUTION AND WE'RE HOPEFUL RIGHT NOW SAYS MR HARDYMON BUT WE'VE BEEN HOPEFUL BEFORE 9308130112 930813 TECHNOLOGY BORLAND'S REVISION OF PROGRAM FAILS TO SATISFY JUDGE BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON BORLAND INTERNATIONAL INC'S REVISED VERSION OF QUATTRO PRO CONTINUES TO VIOLATE LOTUS DEVELOPMENT CORP'S COPYRIGHTS ON THE 123 SPREADSHEET A FEDERAL JUDGE RULED THE RULING COULD EXPOSE BORLAND TO LARGER DAMAGES IF IT DOESN'T SUCCESSFULLY APPEAL THE CASE IN THE RULING US DISTRICT COURT JUDGE ROBERT E KEETON SAID THE MACRO KEY READER FEATURE IN THE BORLAND PRODUCT DOES VIOLATE LOTUS'S COPYRIGHT AS LOTUS HAD CLAIMED IN JANUARY BORLAND REVISED QUATTRO PRO A YEAR AGO TO REMOVE A NUMBER OF FEATURES OF QUATTRO PRO THAT THE JUDGE RULED INFRINGED LOTUS'S COPYRIGHT THE MACRO KEY READER WAS PART OF THE PROGRAM BUT HADN'T BEEN CREATED WHEN LOTUS INITIALLY SUED SO IT HADN'T PREVIOUSLY BEEN CHALLENGED BY LOTUS IT ALLOWS QUATTRO PRO USERS TO USE MACROS CUSTOMIZED SPREADSHEET PROGRAMS DEVELOPED ON 123 TO WORK WITH QUATTRO PRO AS WELL A BORLAND SPOKESMAN SAID HIS COMPANY HASN'T DECIDED WHETHER TO REMOVE THE MACRO KEY READER IN THE WAKE OF THE LATEST RULING BORLAND HAS ARGUED THAT THE FEATURE MERELY ALLOWED CUSTOMERS TO USE MACROS THEY THEMSELVES ALREADY HAD WRITTEN AND THUS IT SHOULDN'T BE ILLEGAL BORLAND IS ASKING FOR AN EXPEDITED APPEAL BEFORE ANY DAMAGES ARE AWARDED IN THE NEXT PHASE OF THE DISTRICT COURT CASE IT SAYS IT EXPECTS TO PREVAIL ON APPEAL OF THE COPYRIGHT RULINGS IN A STATEMENT BORLAND SAID THIS RULING IS NO SURPRISE AT ALL IT IS CONSISTENT WITH THIS JUDGE'S EARLIER OPINIONS WE BELIEVE IT IS INCONSISTENT WITH THOSE OF OTHER FEDERAL COURTS HENRY B GUTMAN LOTUS'S LAWYER SAID WE'RE DELIGHTED BY THE RULING HE SAID HE HOPES THE JUDGE WILL DENY THE APPEAL MOTION BECAUSE I THINK IT'S A DELAYING TACTIC ON BORLAND'S PART JIM P MANZI PRESIDENT OF LOTUS RECENTLY SAID THAT LOTUS LAWYERS ARE PREPARING TO PERFORM A CASHECTOMY TO COLLECT DAMAGES FROM BORLAND LOTUS OFFICIALS HAVE SAID THAT THEY MIGHT SEEK DAMAGES NORTH OF 100 MILLION IN THE CASE THE LATEST RULING IF UPHELD COULD MEAN THAT DAMAGE CALCULATIONS WOULD INCLUDE THE PAST 12 MONTHS OF QUATTRO PRO SALES INCLUDING THOSE OF QUATTRO PRO FOR WINDOWS RATHER THAN ENDING WITH THE PERIOD WHEN BORLAND REMOVED THE OTHER INFRINGING FEATURES 9308130111 930813 HONG KONG'S RITZ THE INN THAT WAS OUT IS FINALLY IN YEARS AFTER BEING NEARLY DONE HOTEL IS JUST NOW OPENING ITS ORNATE DOORS TO GUESTS BY MIRIAM JORDAN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG SIX MONTHS AGO THE GENERAL MANAGER OF HONG KONG'S FANCIEST NEW HOTEL WAS PERSONALLY VACUUMING CARPETS CLEANING THE POOL AND OCCASIONALLY BENDING OVER TO SWAB TOILETS TODAY THAT NIGHTMARE IS OVER AND ERIC WALDBURGER SAYS I HAVE NO FURTHER AMBITION THAN TO STAND IN THAT LOBBY AND WELCOME SOME GUESTS THAT MAY NOT SOUND LIKE MUCH OF AN AMBITION BUT FOR MR WALDBURGER THE OPENING OF THE RITZCARLTON HOTEL ON MONDAY WILL BE VERY MUCH A DREAM COME TRUE THE 44YEAROLD SWISS HOTELIER HAS SPENT MOST OF HIS 28YEAR HOTEL CAREER PUTTING ON THE RITZ BUT HE HASN'T BEEN ABLE TO PUT IT ON IN THIS RITZ BECAUSE FOR THE PAST THREE YEARS IT HAS BEEN EMPTY IN 1990 HE QUIT MANAGING HONG KONG'S STATELY PENINSULA HOTEL IN KOWLOON TO LAUNCH THE RITZCARLTON ACROSS THE HARBOR IN THE CENTRAL BUSINESS DISTRICT HE SAW FOUR OPENING DATES GO BY AS THE HOTEL'S JAPANESE OWNERS TRIED TO WADE THROUGH A FINANCIAL MORASS THE MARBLEBEDECKED HOTEL ON ONE OF HONG KONG'S MOST VALUABLE PIECES OF LAND WENT INTO RECEIVERSHIP THERE WERE RUMORS THAT IT MIGHT BE TORN DOWN TO MAKE WAY FOR AN OFFICEPACKED SKYSCRAPER THEN HONG KONG'S LAI SUN DEVELOPMENT CO FINALLY EMERGED AS A BUYER OF THE HOTEL TWO MONTHS AGO THE BUILDING LONG PRESUMED DEAD SPRANG TO LIFE IT'S A MAD HOUSE IT'S A MAD HOUSE SAYS MR WALDBURGER DURING AN INTERVIEW INTERRUPTED BY PHONE CALLS FROM CONTRACTORS THE HOTEL'S NEW CANADIAN CHEF AND EXECUTIVES AT ATLANTABASED RITZCARLTON CO WHICH MANAGES THE HOTEL ITS FIRST IN ASIA OFFICE AND CONSTRUCTION WORKERS BUSTLE AROUND THE ONCE ABANDONED HALLWAYS NOW ARE BRIGHTLY LIT AIRCONDITIONERS ARE ROARING IN THE 216 ROOMS FURNISHED IN ORNATE EUROPEAN STYLE WHITE COVERS HAVE BEEN LIFTED REVEALING MARBLE WALLS AND CRYSTAL CHANDELIERS PRICES FOR ROOMS HAVE BEEN SET AT 2250 TO 2700 HONG KONG DOLLARS US290 TO US348 A NIGHT BUT THE HOTEL PLANS TO OFFER A 38 DISCOUNT UNTIL FEB 28 EARLY THIS YEAR MR WALDBURGER PREDICTED IT WOULD TAKE FOUR MONTHS TO PUT THE FINISHING TOUCHES ON THE HOTEL AND HIRE STAFF INSTEAD HE'S HAD JUST EIGHT WEEKS TO HIRE AND TRAIN 275 STAFF AND PUT THE PLACE IN ORDER BEFORE THAT EXERCISE THE HOTEL HAD A STAFF OF THREE INCLUDING MR WALDBURGER THERE WAS NO SECRETARY OR TELEPHONE OPERATOR SO MR WALDBURGER ANSWERED ALL INCOMING CALLS THANK GOD THAT'S OVER HE SAYS NOW ALL MR WALDBURGER NEEDS ARE GUESTS I MISSED HAVING A HOTEL TO RUN HE SAYS THAT'S WHAT I'M LOOKING FORWARD TO 9308130110 930813 PEPPERAND SALT WAS CALLED A SLEEPING GIANT BUT I WAS DEFIANT IS STILL SNORING AWAY IN ORDER TO PAY PETER 9308130109 930813 AT&T PROCESS FOR CALLING CUBA NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO ANNOUNCED A NEW CALLHANDLING PROCESS TO HELP CUSTOMERS PLACE CALLS TO CUBA WHICH RESTRICTS THE NUMBER OF CALLS THAT CAN BE COMPLETED FROM THE US AT&T SAID STARTING AUG 15 CUSTOMERS CAN ARRANGE FOR A 10MINUTE CALL BY DIALING 17004601000 BETWEEN 9 PM AND 11 PM EASTERN TIME AS MANY AS 300 CALL REQUESTS WILL BE ACCEPTED DAILY ON A FIRSTCOME FIRSTSERVED BASIS AT&T WILL ATTEMPT TO PLACE EACH CALL FOR AS LONG AS 72 HOURS AND CONTACT THE CUSTOMER WHEN MAKING THE CONNECTION 9308130108 930813 FOREIGN EXCHANGE YEN CONTINUES RAMPAGE AGAINST DOLLAR MARK STERLING DROPS ON JOBLESS DATA BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE YEN CONTINUED ITS RAMPAGE THURSDAY SCORING NEW HIGHS AGAINST THE DOLLAR AND MARK AS STERLING FELL AFTER BEARISH JOBLESS FIGURES SET THE STAGE FOR A POSSIBLE BRITISH INTERESTRATE CUT LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 10295 YEN A NEW HISTORICAL LOW COMPARED WITH 10364 YEN LATE WEDNESDAY IN NEW YORK STERLING MEANWHILE WAS TRADING AT 14663 DOWN FROM 14703 WEDNESDAY THE US CURRENCY ALSO WAS CHANGING HANDS AT 17159 MARKS DOWN FROM 17220 MARKS THE MARK ENDED AROUND 5999 YEN AFTER HITTING A NEW HISTORICAL LOW OF 5979 YEN THURSDAY IT CLOSED NEAR 6017 YEN WEDNESDAY ABOUT NOON ON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10195 YEN AND AT 17159 MARKS TRADERS IN TOKYO REPORTED THAT JAPANESE EXPORTERS WERE NOW LOWERING THE LEVELS AT WHICH THEY WERE WILLING TO SELL DOLLARS A SIGN THAT ALMOST NO ONE EXPECTS THE TREND TO REVERSE SOON EXPORTER SELL ORDERS USUALLY INDICATE THE TOP OF THE DOLLAR'S RANGE AGAINST THE YEN BECAUSE THEY TRY TO HOLD US CURRENCY RECEIVED ABROAD UNTIL THE DOLLAR REACHES HIGHS AND THEN SELL THE DOLLAR FOR THE MOST YEN POSSIBLE THE EXPORTERS REPORTEDLY HAD BEEN WAITING FOR THE DOLLAR TO CLIMB BACK UP TO 108 YEN TRADERS SAID BUT HAVE SINCE GIVEN UP HOPE THAT WILL HAPPEN ANY TIME SOON AND ARE NOW REPORTEDLY READY TO SELL AT 105 YEN MEANWHILE JAPANESE OFFICIALS AGAIN EXPRESSED DISMAY AT THE YEN'S RISE ON THURSDAY JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA TOLD KYODO NEWS SERVICE THAT THE SITUATION WAS EXTREME AND THAT COORDINATED INTERVENTION BY MAJOR ECONOMIC POWERS MIGHT BE NEEDED IF THE YEN ROSE ANY FURTHER JAPAN'S TRADING PARTNERS HOWEVER ARE BELIEVED PLEASED WITH THE YEN'S APPRECIATION BECAUSE IT MAKES JAPANESE PRODUCTS MORE EXPENSIVE OVERSEAS AND MAY REDUCE JAPAN'S HUGE TRADE SURPLUS MEANWHILE THE BANK OF JAPAN WAS AGAIN SEEN BUYING DOLLARS FOR YEN IN A FUTILE BID TO PROP UP THE US CURRENCY THE YEN HAS BEEN MOVING STEADILY HIGHER SINCE FEBRUARY BUT ITS MOST RECENT RUNUP WAS TOUCHED OFF WEDNESDAY BY NEWS THAT JAPAN'S TRADE SURPLUS GREW TO 1182 BILLION IN JULY WIDER THAN EXPECTATIONS AND ABOVE THE 923 BILLION SURPLUS IN JULY 1992 IRONICALLY THE YEN STRENGTH COMES AT A TIME WHEN JAPAN'S ECONOMY IS IN POOR SHAPE A SITUATION LIKELY TO BE EXACERBATED BY THE STRONG YEN'S EFFECT ON CORPORATE PROFITS ORDINARILY A POOR ECONOMY AND THE LOWER SPENDING IT INVOLVES DEPRESS DEMAND FOR A CURRENCY FURTHERMORE AN OFFICIAL INTERESTRATE CUT IS LIKELY SOON LOWER INTEREST RATES USUALLY HURT A CURRENCY'S VALUE BY CUTTING INTO THE RETURN ON DEPOSITS IN THAT CURRENCY BUT THE YEN APPEARS TO BE PLAYING BY ANOTHER SET OF RULES THE YEN IS A UNIQUE CURRENCY IT'S DRIVEN MORE BY TRADE FLOWS NOT INVESTMENT FLOWS LIKE THE OTHER CURRENCIES SAID PETER GLOYNE A SENIOR TRADER AT FIRST CHICAGO CORP IN CHICAGO IT WAS THE SPECTER OF A RATE CUT THAT TOOK STERLING LOWER THURSDAY AFTER NEWS THAT UK MANUFACTURING OUTPUT HAD FALLEN AN UNEXPECTED 21 IN JUNE AND UNEMPLOYMENT HAD RISEN IN JULY AFTER FIVE MONTHS OF DECLINE THE BEARISH FIGURES SUGGESTED THAT JOHN MAJOR'S GOVERNMENT MIGHT TRY TO KEEP BRITIAN'S RECOVERY ALIVE WITH A CUT IN BRITAIN'S 6 BASE RATE SOON 9308130107 930813 WHO'S NEWS MECHANICAL TECHNOLOGY INC MECHANICAL TECHNOLOGY INC LATHAM NY LAWRENCE A SHORE 65 YEARS OLD WAS ELECTED CHAIRMAN OF THIS TECHNOLOGY DEVELOPMENT SERVICES COMPANY SUCCEEDING HARRY APKARIAN 71 WHO RESIGNED MR SHORE IS A FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE COMPANY 9308130106 930813 ELCOR SAYS NET FELL IN QUARTER BUT ROSE IN YEAR ENDED JUNE 30 DALLAS NATURAL DISASTERS AND LOW INTEREST RATES HAVE BEEN GOOD NEWS FOR ROOFING CONCERN ELCOR CORP WHICH EXPECTS TO REPORT THAT FISCAL 1993 NET INCOME MORE THAN DOUBLED ALTHOUGH NET FOR THE FOURTH QUARTER ENDED JUNE 30 DECLINED OPERATING PROFIT NEARLY DOUBLED ROY E CAMPBELL PRESIDENT CHAIRMAN AND CHIEF EXECUTIVE SAID THE COMPANY EXPECTS TO REPORT NET FELL TO 4 MILLION OR 50 CENTS A SHARE IN THE QUARTER FROM 49 MILLION OR 66 CENTS A SHARE A YEAR EARLIER IN THE YEAREARLIER PERIOD 28 MILLION OR 39 CENTS A SHARE OF THE NET CAME FROM AN EXTRAORDINARY GAIN FROM THE EARLY EXTINGUISHMENT OF DEBT AND THE USE OF TAXLOSS CARRYFORWARDS SALES ROSE TO JUST OVER 44 MILLION FROM 432 MILLION MR CAMPBELL ATTRIBUTED THE EARNINGS IMPROVEMENT TO A STRONG TILT IN THE COMPANY'S PRODUCT MIX TOWARD PREMIUMPRICED SHINGLE PRODUCTS WITH MUCH HIGHER MARGINS HE SAID ELCOR'S INDUSTRIAL OPERATING GROUP ALSO TRIMMED ITS OPERATING LOSSES FROM THE PREVIOUS YEAR ORDERS HAVE REMAINED STRONG MR CAMPBELL SAID IN PART BECAUSE NEWHOME CONSTRUCTION AND REROOFING OF EXISTING HOMES HAVE CONTINUED TO REBOUND AS A RESULT OF LOW INTEREST RATES ALSO A SERIES OF NATURAL DISASTERS FROM HURRICANES AND HAIL STORMS LAST YEAR TO FLOODS THIS YEAR INCREASED DEMAND FOR NEW ROOFS BUT MR CAMPBELL NOTED THAT SALES GAINS HAVE BEEN LIMITED BY THE FACT THAT ORDERS IN THE COMPANY'S CORE ROOFING BUSINESS HAVE OUTPACED PRODUCTION CAPACITY IN THE PAST FIVE QUARTERS A 30 MILLION ASPHALT SHINGLES PLANT SLATED TO OPEN LATE NEXT YEAR IN CALIFORNIA WILL INCREASE ELCOR'S PRODUCTION CAPACITY ABOUT 65 FOR A POTENTIAL INCREASE OF 90 MILLION TO 100 MILLION IN ANNUAL SALES HE SAID FOR THE YEAR HE SAID ELCOR EXPECTS TO POST NET OF 175 MILLION OR 229 A SHARE COMPARED WITH 83 MILLION OF 113 A SHARE IN FISCAL 1992 HE SAID SALES GREW ABOUT 16 TO ROUGHLY 173 MILLION FROM 1491 MILLION LARGELY BECAUSE OF IMPROVED PRODUCTIVITY AT EXISTING FACILITIES 9308130105 930813 WHO'S NEWS HOGAN SYSTEMS INC HOGAN SYSTEMS INC DALLAS MICHAEL H ANDERSON PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS SOFTWARE SUPPLIER WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN MR ANDERSON 54 YEARS OLD SUCCEEDS WILLIAM O HUNT 59 WHO WILL REMAIN A DIRECTOR MR HUNT WHO HAS BEEN HOGAN'S CHAIRMAN FOR THE PAST 11 YEARS IS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF INTELLICALL INC A DALLAS TELECOMMUNICATIONS CONCERN 9308130104 930813 INTERNATIONAL BRAZILPORTUGAL ALLIANCE NEW YORK THE LONGDISTANCE COMPANIES OF BRAZIL AND PORTUGAL ANNOUNCED AN ALLIANCE TO IMPROVE SERVICE FOR OVERSEAS CUSTOMERS EMBRATEL BRAZIL'S GOVERNMENTOWNED TELECOMMUNICATIONS COMPANY AND MARCONI PORTUGAL'S TELECOMMUNICATIONS COMPANY AGREED TO INVEST ABOUT 200 MILLION IN COMMON PROJECTS IN SOUTH AMERICA NORTH AMERICA EUROPE AND AFRICA THE ALLIANCE WILL FOCUS ON TELECOMMUNICATIONS SERVICES SUCH AS MOBILE SYSTEMS AND FACSIMILE TRANSMISSIONS THE COMPANIES ALSO WILL OPEN A WASHINGTON OFFICE THIS YEAR TO PROMOTE BUSINESS OPPORTUNITIES SAID JOSE DE PINHO PRESIDENT OF CPRM NORTH AMERICA INC A MARCONI UNIT IN ADDITION THE ALLIANCE WILL ESTABLISH A LISBONBASED HOLDING COMPANY NEXT YEAR 9308130103 930813 GENZYME TO INVEST IN UNIVAX CAMBRIDGE MASS GENZYME CORP SAID IT WILL INVEST 5 MILLION IN UNIVAX BIOLOGICS INC ROCKVILLE MD AND PAY UP TO AN ADDITIONAL 6 MILLION FOR WORK ON PRODUCTS TO TREAT INFECTIONS ASSOCIATED WITH CYSTIC FIBROSIS GENZYME SAID THE TWO COMPANIES WILL ALSO SHARE DEVELOPMENT FUNDING TOTALLING UP TO 11 MILLION UNIVAX WILL RETAIN MANUFACTURING RIGHTS AND GENZYME WILL GET WORLDWIDE MARKETING RIGHTS TO A POLYCLONAL ANTIBODY BEING DEVELOPED BY UNIVAX THE ANTIBODY IS DESIGNED TO PROVIDE IMMUNITY AGAINST THE OBSTRUCTIVE BRONCHITIS THAT EVENTUALLY AFFECTS 90 OF CYSTIC FIBROSIS VICTIMS HUMAN TRIALS OF THE ANTIBODY ARE EXPECTED NEXT YEAR 9308130102 930813 WHO'S NEWS SYSTEMED INC SELECTS WESTOVER AS PRESIDENT AND CHIEF EXECUTIVE LAGUNA HILLS CALIF SAMUEL L WESTOVER AN EXECUTIVE IN THE MANAGED HEALTHCARE FIELD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SYSTEMED INC AS PART OF A MANAGEMENT REALIGNMENT MR WESTOVER 38 YEARS OLD RESIGNED AS CHIEF FINANCIAL OFFICER TREASURER AND SENIOR VICE PRESIDENT OF WELLPOINT HEALTH NETWORKS INC TO TAKE THE SYSTEMED POST HE SUCCEEDS J ROBERTS FOSBERG 56 WHO WAS NAMED CHAIRMAN JOHN E FLOOD FORMERLY CHAIRMAN WAS APPOINTED TO THE NEW POST OF VICE CHAIRMAN SYSTEMED WILL BE BEST SERVED BY A CEO WITH INDEPTH KNOWLEDGE AND OPERATIONAL BACKGROUND IN THE MANAGED CARE AREA OF BUSINESS MR FOSBERG SAID AS CHAIRMAN HE WILL REMAIN INVOLVED IN STRATEGIC PLANNING THE NEW VICE CHAIRMAN MR FLOOD SAID HE AND MR FOSBERG STEPPED DOWN TO SET UP THE NECESSARY MANAGEMENT STRUCTURE TO RECRUIT MR WESTOVER THE EXECUTIVE WAS NAMED A DIRECTOR IN JULY 1992 WITHOUT ANY THOUGHT AT THE TIME OF HIS BEING A CANDIDATE TO SUCCEED MR FOSBERG MR FLOOD SAID SYSTEMED A PROVIDER OF PRESCRIPTION DRUG BENEFIT SERVICES IS A SUPPLIER TO BLUE CROSS OF CALIFORNIA A SUBSIDIARY OF WELLPOINT HEALTH SYSTEMS WELLPOINT A MANAGED HEALTHCARE COMPANY IN WOODLAND HILLS CALIF SAID IT NAMED ITS VICE PRESIDENT AND CONTROLLER YON Y YORDEN 38 ACTING CHIEF FINANCIAL OFFICER 9308130101 930813 FORD MOTOR TO IDLE A LUXURYCAR PLANT AMID SLUGGISH SALES DETROIT FORD MOTOR CO SAID IT WILL IDLE ITS WIXOM MICH LUXURYCAR ASSEMBLY PLANT NEXT WEEK AMID SLUGGISH SALES FOR TWO OF THE THREE HIGHPRICED MODELS BUILT THERE THE AUTO MAKER DIDN'T SPECIFY A REASON FOR THE SHUTDOWN BUT IT COMES AS SALES OF THE NEW LINCOLN MARK VIII AND THE OLDER LINCOLN CONTINENTAL MODEL ARE FALLING BELOW EXPECTATIONS FORD DEALERS HAD A 103 DAYS' SUPPLY OF MARK VIII MODELS AS OF JULY 31 ABOUT 58 HIGHER THAN THE 60TO65DAY SUPPLY LEVEL INDUSTRY EXECUTIVES CONSIDER IDEAL CONTINENTAL INVENTORIES STOOD AT 99 DAYS' SUPPLY WHILE STOCKS OF UNSOLD LINCOLN TOWN CARS WERE AT A RELATIVELY HEALTHY 68 DAYS' SUPPLY ACCORDING TO THE INDUSTRY NEWSLETTER WARD'S AUTOMOTIVE REPORTS OVERALL THE TEN DOMESTIC AUTO MAKERS SAID THEY PLAN TO BUILD 188524 CARS AND TRUCKS THIS WEEK DOWN 16 FROM THE SAME PERIOD A YEAR AGO CHRYSLER CORP SAID ITS VIPER ASSEMBLY PLANT IN DETROIT WILL NOT OPERATE NEXT WEEK BECAUSE OF A SCHEDULED VACATION CHRYSLER PLANS OVERTIME AT SEVERAL OTHER ASSEMBLY PLANTS TOMMOROW AND NEXT WEEK IN JULY US VEHICLE PRODUCTION FELL 83 TO 524251 FROM 571918 IN THE SAME MONTH LAST YEAR THE DECREASES IN PRODUCTION LEVELS FOR BOTH THE CURRENT WEEK AND THE ENTIRE MONTH OF JULY RESULTED MAINLY FROM DOWN TIME AND SLOW STARTUPS RELATED TO 1994 MODEL CHANGEOVERS 9308130100 930813 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 CITFED BANCORP INC 403 MILLION OF 825 SUBORDINATED NOTES DUE SEPT 1 2003 OFFERED THROUGH UNDERWRITERS MCDONALD & CO SECURITIES AND THE CHICAGO CORP FEDERAL FARM CREDIT BANKS FUNDING CORP 100 MILLION OF NOTES DUE AUG 19 1994 SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES PAY QUARTERLY AND FLOAT DAILY AT PRIME MINUS 277 BASIS POINTS PRIME IS CURRENTLY 6 THE INITIAL COUPON WILL BE SET TUESDAY FEDERAL HOME LOAN BANK SYSTEM 107 MILLION OF DEBENTURES DUE AUG 20 1998 PRICED AT PAR TO YIELD 5235 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 14 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY NATIONSBANC CAPITAL MARKETS INC GENERAL CHEMICAL CORP 100 MILLION OF SENIOR SUBORDINATED NOTES DUE AUG 15 2003 PRICED AT PAR TO YIELD 925 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP MEAD CORP 150 MILLION OF DEBENTURES DUE AUG 1 2025 PRICED AS 7125S AT 98876 TO YIELD 7215 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 90 BASIS POINTS ABOVE WHENISSUED TREASURYS RATED SINGLEA3 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC NORANDA INC 100 MILLION OF NOTES DUE AUG 18 2000 PRICED AT PAR TO YIELD 5 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES FLOAT AND PAY QUARTERLY AT 75 BASIS POINTS OVER THE THREEMONTH LONDON INTERBANK OFFERED RATE THERE IS A FLOOR OF 5 RATED BAA2 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY UBS SECURITIES INC RJR NABISCO HOLDINGS CORP 1 BILLION TWOPART ISSUE PRICED BY UNDERWRITERS LED BY LEHMAN BROTHERS INC ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 500 MILLION OF NOTES DUE AUG 15 2005 WAS PRICED AS 875S AT 99705 TO YIELD 879 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 305 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 500 MILLION OF DEBENTURES DUE AUG 15 2013 WAS PRICED AS 925S AT 99907 TO YIELD 926 THE DEBENTURES WERE PRICED AT A SPREAD OF 290 BASIS POINTS ABOVE WHENISSUED TREASURYS BOTH PARTS WERE RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P TEXACO CAPITAL INC 200 MILLION OF DEBENTURES DUE AUG 15 2023 PRICED AS 6875S AT 97342 TO YIELD 709 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 77 BASIS POINTS ABOVE WHENISSUED TREASURYS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP TEXACO CAPITAL IS A UNIT OF TEXACO INC BORGWARNER AUTOMOTIVE INC INITIAL OFFERING OF 35 MILLION COMMON SHARES PRICED AT 25 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO EZ COMMUNICATIONS INC INITIAL OFFERING OF 34 MILLION CLASS A COMMON SHARES PRICED AT 13 APIECE THROUGH UNDERWRITERS FIRST BOSTON CORP AND ALEX BROWN & SONS INC FIDELITY FEDERAL SAVINGS BANK 435000 COMMON SHARES PRICED AT 975 APIECE THROUGH UNDERWRITERS LED BY SCOTT & STRINGFELLOW HAWAIIAN ELECTRIC INDUSTRIES 18 MILLION COMMON SHARES PRICED AT 3725 APIECE THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC RESOURCE MORTGAGE CAPITAL INC TWO MILLION SHARES PRICED AT 2775 APIECE THROUGH COMANAGING UNDERWRITERS LEHMAN BROTHERS INC AND STEPHENS INC WOLVERINE TUBE INC INITIAL OFFERING OF 57 MILLION COMMON SHARES PRICED AT 1550 APIECE THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP FLORIDA BOARD OF EDUCATION 1746 MILLION SERIES B GENERALOBLIGATION PUBLICEDUCATION CAPITALOUTLAY REFUNDING BONDS APPARENTLY WON BY A LEHMAN BROTHERS INC GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 52756 YIELDS RANGE FROM 33 IN 1995 TO 5375 IN 2017 BOTH MOODY'S AND S&P HAVE RATED THE BONDS DOUBLEA ILLINOIS 900 MILLION GENERALOBLIGATION CERTIFICATES SERIES AUGUST 1993 APPARENTLY WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE NET INTEREST COST AT 297 THE OFFERING INCLUDES THE FOLLOWING 300 MILLION OF CERTIFICATES 325S PRICED TO YIELD 28 ON APRIL 15 1994 300 MILLION OF CERTIFICATES 325S PRICED TO YIELD 29 ON MAY 16 1994 AND 300 MILLION OF CERTIFICATES 35S PRICED TO YIELD 295 ON JUNE 15 1994 MOODY'S HAS RATED THE ISSUE MIG1 AND S&P HAS ASSIGNED AN SP1PLUS RATING DENMARK SOVEREIGN ONE BILLION SWISS FRANCS OF 425 PUBLICLY LISTED BONDS DUE SEPT 30 1999 PRICED AT 1018 VIA UNION BANK OF SWITZERLAND FEES 1875 POINTS CREDIOP OVERSEAS BANK LTD ITALIAN PARENT 150 MILLION OF FLOATINGRATE EURONOTES DUE SEPTEMBER 1998 AT ISSUE AND REOFFER PRICE 9978 VIA SALOMON BROTHERS INTERNATIONAL LTD INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH LONDON INTERBANK OFFERED RATE PLUS 40 BASIS POINTS REOFFER YIELD LIBOR PLUS 45 BASIS POINTS GUARANTOR CREDIOP SPA FEES 025 POINT EQK GREEN ACRES FUNDING CORP US PARENT 118 MILLION OF ASSETBACKED FLOATINGRATE EURONOTES DUE AUG 19 1998 AT ISSUE AND REOFFER PRICE 999 VIA GOLDMAN SACHS INTERNATIONAL LTD BONDS SECURED AGAINST FIRST MORTGAGE LOAN ON GREEN ACRES SHOPPING MALL INTEREST PAYABLE QUARTERLY AT THREEMONTH LIBOR PLUS 78 BASIS POINTS FEES UNDISCLOSED KOMMUNEKREDIT DANISH AGENCY 500 MILLION DANISH KRONER OF 65 EUROBONDS DUE SEPT 22 1998 AT ISSUE PRICE 102081 VIA MORGAN STANLEY INTERNATIONAL REOFFERED AT 100456 TO YIELD 639 FEES 1875 POINTS MITSUI USA & CO JAPANESE PARENT FIVE BILLION YEN OF 39 EUROBONDS DUE DEC 20 1996 AT ISSUE AND REOFFER PRICE 10039 VIA SAKURA FINANCE INTERNATIONAL LTD BONDS YIELD 377 KEEPWELL AGREEMENT WITH MITSUI & CO FEES 036 POINT AS ORESUNDSFORBINDERSEN DANISH AGENCY 500 MILLION DANISH KRONER OF 65 EUROBONDS DUE SEPT 22 1998 AT ISSUE PRICE 10205 VIA DEN DANSKE BANK BONDS YIELD 646 AFTER DEDUCTING FULL FEES OF 1875 GUARANTOR KINGDOM OF DENMARK RIO CHAIN CO JAPAN 70 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE SEPT 1 1997 WITH EQUITYPURCHASE WARRANTS CARRYING A 0875 COUPON AT PAR VIA NOMURA BANK SWITZERLAND WARRANTS EXERCISABLE FROM SEPT 16 1993 TO AUG 26 1997 TO PURCHASE COMPANY SHARES FINAL TERMS FIXED AUG 19 FEES 1625 POINTS SWEDEN SOVEREIGN 100 MILLION ECU OF 725 EUROBONDS DUE JUNE 30 2000 AT ISSUE AND REOFFER PRICE 10455 VIA SWISS BANK CORP AND MORGAN STANLEY INTERNATIONAL BONDS WILL TRADE INTERCHANGEABLY WITH 500 MILLION ECU OF OUTSTANDING IDENTICAL BONDS NEW ISSUE SIZE 600 MILLION ECU BONDS YIELD 64 FEES 03 POINT ALL OTHER TERMS UNCHANGED TOKAI FINANCE CURACAO NV JAPANESE PARENT 50 BILLION YEN OF UNDATED SUBORDINATED FLOATINGRATE EURONOTES AT ISSUE PRICE PAR VIA NIKKO EUROPE PLC COUPON FLOATS AT LONG TERM PRIME RATE MINUS 15 BASIS POINTS FOR FIRST FIVE YEARS STEPPING UP TO LONG TERM PRIME PLUS 10 BASIS POINTS FOR NEXT FIVE YEARS AFTER 10 YEARS COUPON AT LONG TERM PRIME PLUS 60 BASIS POINTS BONDS CALLABLE AFTER FIVE YEARS AND EVERY COUPON PAYMENT DATE THEREAFTER AT PAR GUARANTOR TOKAI BANK LTD FEES UNDISCLOSED INTEREST PAYABLE SEMIANNUALLY AFTER TWO SHORT COUPON PERIODS ENDING FEB 26 1994 TRINKAUS & BURKHARDT FINANCE NV GERMAN PARENT 150 MILLION MARKS OF 625 EUROBONDS DUE MAY 10 2000 AT ISSUE PRICE 101875 VIA TRINKAUS & BURKHARDT KGAA BONDS YIELD 6313 AT 99625 COMANAGERS' BREAKEVEN PRICE A MARGIN OF 10 BASIS POINTS ABOVE COMPARABLE GERMAN DOMESTIC BANK BOND GUARANTOR TRINKAUS & BURKHARDT KGAA FEES 225 POINTS WORLD BANK SUPRANATIONAL 300 MILLION SWISS FRANCS OF 425 PRIVATELY PLACED NOTES DUE SEPT 14 2000 PRICED AT 102 VIA UNION BANK OF SWITZERLAND FEES 1625 POINTS 9308130099 930813 POLITICS & POLICY NATO'S PLAN FOR LIMITED AIR STRIKES ON SERBS FAILS TO SATISFY EITHER CAMP IN US MILITARY BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MILITARY LIKE THE POLITICAL COMMUNITY IS DEEPLY DIVIDED OVER THE BALKANS NONINTERVENTIONISTS LED BY JOINT CHIEFS CHAIRMAN COLIN POWELL WANT THE US TO STAY CLEAR OF THE FIGHTING BUT AIR POWER ENTHUSIASTS LED BY AIR FORCE CHIEF MERRILL MCPEAK FAVOR EXTENSIVE BOMBING OF THE SERBIAN MILITARY IRONICALLY BOTH SIDES IN THE DEBATE LOSE UNDER THE NORTH ATLANTIC TREATY ORGANIZATION PLAN TO LAUNCH LIMITED AIR STRIKES ON SERBIAN POSITIONS BUT THE DISPUTE WITHIN THE MILITARY HIGHLIGHTS THE LARGER DEBATE OVER HOW AND WHEN TO USE MILITARY FORCE IN A WORLD NO LONGER DEFINED BY THE COLD WAR PARADIGM FOR MONTHS THE TWO SIDES HAVE SNIPED AT EACH OTHER WITH GEN POWELL'S FOLLOWERS PUBLICLY CRITICIZING THE MCPEAK CAMP'S ARGUMENTS AND AIR FORCE OFFICERS PRIVATELY GRUMBLING THAT GEN POWELL AND HIS SIDE DON'T UNDERSTAND AIR POWER BUT FOR ALL THEIR DISAGREEMENTS NEITHER SIDE MUCH LIKES THE LIMITED APPROACH ADOPTED BY NATO MONDAY WHERE WE'RE HEADING NOW DOESN'T APPEAL TO ANY OF THE MAJOR FACTIONS SAID ONE AIR FORCE STRATEGIST THE KEEPAWAY CAMP HAS BEEN OVERRULED BY THE WHITE HOUSE WHICH HOPES THE THREAT OF NATO AIR STRIKES WILL FORCE THE SERBS TO BEHAVE BETTER IN BOSNIA AND AT THE NEGOTIATING TABLE IN GENEVA BUT A GULF WARTYPE OPERATION ISN'T IN THE CARDS EITHER THE US WORKING THROUGH NATO AND THE UNITED NATIONS HAS SETTLED ON A GRADUALIST LIMITED APPROACH AIMED AT ENDING THE STRANGULATION OF SARAJEVO NOT REVERSING OVERWHELMING SERBIAN GAINS IN BOSNIA THOUGH WIDESPREAD PENTAGON DISSENT HAS BEEN MUTED SOMEWHAT BY THE BELIEF OF MANY MILITARY OFFICERS THAT PRESIDENT CLINTON AND NATO WON'T FOLLOW THROUGH ON THE THREATS I DON'T THINK IT'S GOING TO HAPPEN SAYS ONE OFFICER ON THE STAFF OF THE JOINT CHIEFS WHEN ANOTHER POLITICALLY SAVVY OFFICER AT THE PENTAGON WAS ASKED WHY AFTER A YEAR OF VIGOROUS RESISTANCE THE JOINT CHIEFS WERE GOING ALONG WITH THE AIR STRIKES PLAN NOW HE RESPONDED BY REFERRING TO THE CONSTITUTION AND SPECIFICALLY TO THE SUBORDINATION OF THE MILITARY TO CIVILIAN CONTROL THE IMPLICATION WAS THAT THE TOP BRASS HAS BEEN TOLD TO SHUT UP AND GET ON WITH IT FOR GEN POWELL THE EXISTENCE OF THE NATO PLAN BRINGS TO A BITTER END A YEARLONG CAMPAIGN AGAINST MILITARY INTERVENTION IN THE FORMER YUGOSLAVIA ON THE DAY MR CLINTON WAS ELECTED PRESIDENT THE GENERAL TOLD A WASHINGTON AUDIENCE I AM NOT ONE OF THOSE WHO BELIEVES THAT A FEW WELLCHOSEN BOMBS WILL TAKE CARE OF A THOUSAND YEARS OF HISTORY THEY WON'T NOW PRESSED BY PRESIDENT CLINTON NATO IS COMMITTED TO ALMOST THE PRECISE COURSE THAT GEN POWELL DENOUNCED AFTER MONDAY'S MEETING IN BRUSSELS NATO MILITARY PLANNERS ARE AT WORK CHOOSING WHERE TO DROP A FEW WELLPLACED BOMBS SHOULD THE SERB SIEGE OF SARAJEVO CONTINUE INTO THE FALL ANY ACTION IS ALMOST CERTAIN TO OCCUR BEFORE GEN POWELL STEPS DOWN AT THE END OF SEPTEMBER AND IS SUCCEEDED BY ARMY GEN JOHN SHALIKASHVILI WHO HAS BEEN INTIMATELY INVOLVED IN PLANNING NATO'S THREATENED AIR STRIKES IN THE VIEW OF MANY MILITARY OPPONENTS OF INTERVENTION THE AIR POWER ADVOCATES HAVE MADE PROMISES THEY CAN'T FULFILL AND US GROUND TROOPS EVENTUALLY COULD BE CALLED IN TO MAKE THE PROMISES GOOD THERE'S ALWAYS BEEN A CONCERN THAT THE AIR FORCE IS PROMISING MORE THAN IT CAN DELIVER SAYS ONE ARMY OFFICER CLOSE TO ARMY CHIEF GORDON SULLIVAN A NONINTERVENTIONIST BUT IF GEN POWELL AND HIS FELLOW ARMY GROUND POUNDERS HAVE LOST THE DEBATE THE AIRPOWER PARTY HAS HARDLY WON IT NOW FINDS ITSELF WORRYING ABOUT BEING PUSHED TO DO WHAT IT CONSIDERS THE RIGHT THING THE WRONG WAY THAT IS INTO CONDUCTING A POLITICALLY DRIVEN ACTION WITH UNCERTAIN MILITARY ENDS THAT COULD EASILY BECOME A FIASCO FOR ALL CONCERNED THE TARGETS ARE GENERATED POLITICALLY THEY'RE APPROVED POLITICALLY IN A RATCHETING EFFORT WORRIES ROBERT GASKIN A RETIRED AIR FORCE COLONEL WHO IS NOW AN ANALYST AT BUSINESS EXECUTIVES FOR NATIONAL SECURITY A WASHINGTON RESEARCH GROUP HE LIKENS THE NATO APPROACH TO THE WAY PRESIDENT JOHNSON MICROMANAGED THE EARLY BOMBING IN VIETNAM SOME MILITARY PEOPLE LIKE THE NATO APPROACH PEOPLE IN THE PENTAGON MAY NOT KNOW AS MUCH AS THEY THINK SAYS ONE A US MILITARY OFFICER FAMILIAR WITH THE NATO'S AIR STRIKE PLAN HE CONCEDES THERE ARE WORRIES BUT SAYS THE PLAN IS FAR MORE WORKABLE THAN THE CRITICS SAY THIS OFFICER ARGUES THAT THE NATO PLAN IS PROPERLY FOCUSED ON ALTERING THE BEHAVIOR ON THOSE RESPONSIBLE FOR THE SIEGE OF SARAJEVO HE SAYS THAT AIR STRIKES ALMOST CERTAINLY WILL HAVE A POWERFUL IMPACT ON SERB FORCES THESE ARE PEOPLE WHO HAVEN'T BEEN SHOT AT WHO SIT UP IN THE HILLS AND LOB SHELLS HE SAYS BUT THAT'S A MINORITY VIEW TO BEGIN WITH AIR POWER ADVOCATES DISLIKE WHAT THEY SEE AS THE INCREMENTAL NATURE OF THE NATO PLAN WHOSE DETAILS REMAIN SECRET AS APPROVED BEHIND CLOSED DOORS THE PLAN WOULD KICK OFF WITH LIMITED TITFORTAT TACTICAL MOVES AND GRADUALLY ESCALATE DEPENDING ON SERB BEHAVIOR THAT'S EXACTLY THE OPPOSITE OF THE KIND OF BROAD FAST OVERWHELMING DEEPSTRIKE STRATEGIC AIR CAMPAIGN THE AIR FORCE CONDUCTED IN THE PERSIAN GULF WAR WE'RE NOT GOING TO LOSE MANY AIRPLANES BUT WE'RE GOING TO USE A VITAL RESOURCE AIR POWER IN A WAY THAT DOESN'T BRING MUCH CREDIT TO IT WORRIES AN UNHAPPY AIR FORCE STRATEGIST IF THE POLITICALLY CONSTRAINED CAMPAIGN PROVES AS INEFFECTIVE AS HE FEARS THE PRESIDENT IS GOING TO SAY BOY THESE AIR POWER BOYS REALLY SCREWED UP AND IT REALLY ISN'T VERY USEFUL' HE SAYS MILITARY EXPERTS BELIEVE THERE ARE SEVERAL OTHER BAD CARDS IN THE HAND NATO HAS DEALT MANY ARE WARY OF THE UNWIELDY COMMANDANDCONTROL STRUCTURE DEVISED BY NATO FOR THE AIR STRIKES WITH A FRENCH GENERAL ON THE GROUND IN THE FORMER YUGOSLAVIA COORDINATING OPERATIONS WITH US ADM MIKE BOORDA WHO WILL OPERATE OUT OF A NATO POST IN ITALY IF YOU THINK WE WERE SCREWED UP GOING INTO GRENADA WITH DIFFERENT FREQUENCIES AMONG THE DIFFERENT BRANCHES OF THE US MILITARY JUST IMAGINE WHAT IT WILL BE LIKE WITH INTERNATIONAL FORCES SAYS RETIRED ARMY LT GEN RICHARD TREFRY A FORMER MILITARY ASSISTANT TO PRESIDENT BUSH NO ONE NOT EVEN THE MOST ARDENT FANS OF AIR POWER CLAIMS THAT NETTLESOME SHOOTANDSCOOT SERB MORTARS CAN BE STILLED BY AIR STRIKES THAT RAISES THE QUESTION OF JUST WHAT TROOPS ARE GOING TO DO THAT JOB BECAUSE THE US REFUSES TO COMMIT GROUND FORCES TO COMBAT IN THE BALKANS THERE AIN'T NO WAY WE'RE GOING TO CONTROL THE MORTARS WITHOUT A LOT OF GROUND WORK WARNS AN AIR FORCE TARGETING EXPERT AIR FORCE PLANNERS ALSO FRET THAT THE AIR CAMPAIGN PLANNED LAST SPRING FOR POSSIBLE IMPLEMENTATION DURING THE CLEAR SKIES OF SUMMER MAY BE MUCH HARDER TO CARRY OUT AS WINTER APPROACHES BUT THOSE CONCERNS ARE MINOR COMPARED WITH THEIR BIGGEST WORRY WHAT COMES AFTER THE AIR STRIKES THE NATO PLAN SEEMS TO ASSUME THAT STRIKES WILL LEAD TO A PEACE AGREEMENT BUT WHAT SOME ANALYSTS ASK IF NATO BOMBS FORCE THE SERBS TO ALTER THEIR TACTICS RATHER THAN THEIR BEHAVIOR THEY SEEM TO THINK THAT AFTER A FEW STRIKES THE SERBS WILL BACK OFF WHICH SEEMS TO RUN AGAINST MOST OF WHAT WE KNOW ABOUT THE SERBS' PSYCHOLOGY SAYS ONE GOVERNMENT ANALYST SO IT MAY BE AN OPENENDED COMMITMENT IF THE SERBS DON'T BACK OFF AND IF THE SERBS DON'T FLINCH IT IS DOUBTFUL THAT NATO COULD AFFORD TO WALK AWAY THE UN AND NATO HAVE AN ENORMOUS AMOUNT ON THE LINE ONCE THEY COMMIT THEY CAN'T AFFORD TO BE BEATEN BY THE SERBS SAYS MR GASKIN THE RETIRED AIR FORCE STRATEGIST SO IN FOR A PENNY IN FOR A POUND 9308130098 930813 THE NEW TAX LAW SEARCHING FOR SHELTER EUROPEAN FUNDS ARE LESS TAXING ON INVESTORS BY BARBARA DONNELLY GRANITO STAFF REPORTER OF THE WALL STREET JOURNAL AFFLUENT INVESTORS FEELING STUNG BY HIGHER TAXES MIGHT FIND A SHRED OF COMFORT IN EUROPEAN STOCK FUNDS EVEN AFTER THEIR RECENT STRONG GAINS SOME OF THESE FUNDS ARE STILL SITTING ON SIZABLE REALIZED LOSSES ACCUMULATED DURING THE 199092 PERIOD OF SWOONING EUROPEAN STOCK PRICES THE BENEFIT FOR TODAY'S INVESTORS IS THAT THOSE LOSSES CAN IN EFFECT BE USED TO DEFER TAXES ON A LIKE AMOUNT OF FUTURE GAINS THE TAX DEFERRAL LASTS INDEFINITELY UNTIL INVESTORS EXIT FROM THE FUND WHEN YOU BUY INTO A MUTUAL FUND YOU'RE BUYING INTO A GAME IN PROGRESS SO IT'S VERY IMPORTANT TO FIGURE OUT WHAT THE FUND'S EXISTING TAX SITUATION IS SAYS DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS WHICH IS JUST STARTING TO TRACK FUNDS' TAX DATA FUNDS WITH TAXLOSS CARRYFORWARDS ALLOW YOU TO BENEFIT FROM LOSSES THAT OTHERS SUSTAINED BEFORE YOU ENTERED THE FUND HE SAYS CAPITAL GAINS WHICH OCCUR WHEN A FUND BUYS STOCKS THAT GO UP IN PRICE ARE RECOGNIZED FOR TAX PURPOSES ONLY WHEN THE INVESTMENTS ARE SOLD AND PAPER PROFITS ARE REALIZED OR TURNED INTO REAL MONEY EACH YEAR IF A FUND REALIZES MORE GAINS THAN LOSSES IT'S OBLIGED BY LAW TO DISTRIBUTE THE EXCESS PROFIT TO SHAREHOLDERS WHO MUST PAY TAX ON IT IF A FUND HAS MORE LOSSES THAN GAINS HOWEVER AS MANY EUROPEAN STOCK FUNDS DID IN RECENT YEARS IT GETS TO CARRY THE NET LOSS FORWARD TO OFFSET GAINS IN SUBSEQUENT YEARS THIS ALLOWS THE FUND TO AVOID MAKING TAXABLE DISTRIBUTIONS ON THOSE GAINS BUT BECAUSE THE GAINS WILL BE REFLECTED IN THE FUND'S SHARE PRICE INVESTORS WOULD EVENTUALLY PAY TAXES ON THEM WHEN THEY SOLD THEIR SHARES FOR INSTANCE GT EUROPE GROWTH FUND COULD DEFER TAXES ON ROUGHLY 170 MILLION OF FUTURE CAPITAL GAINS EQUAL TO ABOUT 20 OF CURRENT ASSETS SAYS JOHN LEGAT THE FUND'S MANAGER ALLIANCE NEW EUROPE FUND COULD SHELTER ABOUT 19 MILLION OF FUTURE GAINS ALSO EQUAL TO ABOUT 20 OF THE FUND'S ASSETS SAYS THAT FUND'S ACCOUNTANT THE TAXLOSS ADVANTAGES AT FIDELITY EUROPE FUND AND T ROWE PRICE EUROPEAN STOCK FUND ARE MORE MODESTEQUIVALENT TO ONLY 2 TO 3 OF THE FUNDS' ASSETS BUT THAT'S STILL A SMALL WIND AT OUR BACK SAYS GEORGE MURNAGHAN A VICE PRESIDENT AT ROWE PRICE FLEMING INTERNATIONAL WHICH MANAGES T ROWE PRICE'S INTERNATIONAL FUNDS TAXLOSS CARRYFORWARDS ARE EXTREMELY RARE AMONG MUTUAL FUNDS TODAY BECAUSE OF THE STRONG PERFORMANCE OF MOST STOCK AND BOND MARKETS AROUND THE GLOBE IN RECENT YEARS IN FACT MOST FUNDS TODAY ARE IN THE OPPOSITE SITUATION THEY'RE SITTING ON BIG ACCUMULATED GAINS THAT HAVEN'T YET BEEN DISTRIBUTED TO INVESTORS WHEN LATECOMERS BUY INTO SUCH FUNDS PART OF THE PRICE THEY PAY REFLECTS THOSE PAST GAINS WHICH WILL EVENTUALLY BE SUBJECT TO TAXES AT SOME POINT WHEN THOSE GAINS ARE REALIZED AND PAID OUT NEWCOMERS WILL BE IN THE AWKWARD POSITION OF GETTING BACK SOME OF THEIR OWN MONEYAND HAVING TO PAY TAXES ON IT INSTEAD OF BENEFITING FROM SOMEONE ELSE'S MISERY YOU END UP PICKING UP THE TAB FOR SOMEBODY ELSE'S PARTY SAYS MORNINGSTAR'S MR PHILLIPS UNDER THE NEW TAX LAW THE TOP TAX RATE ON LONGTERM CAPITAL GAINS REMAINS 28 BUT SHORTTERM GAINS ON INVESTMENTS HELD FOR ONE YEAR OR LESS WOULD BE TAXED AS ORDINARY INCOME AT RATES THAT NOWADAYS CAN RUN TO 396 OR MORE STATE AND LOCAL GOVERNMENTS DEMAND A SHARE TOO WHICH VARIES WITH LOCAL TAX RATES TO AVOID PAYING TAXES ON PREEXISTING GAINS SAVVY INVESTORS MIGHT AVOID BUYING MUTUALFUND SHARES BEFORE THEIR BIG ANNUAL DISTRIBUTIONS WHICH USUALLY TAKE PLACE AROUND YEAR END SOME MUTUALFUND COMPANIES GIVE INVESTORS DETAILS OF COMING DISTRIBUTIONS FIDELITY INVESTMENTS FOR INSTANCE STARTS DISCLOSING INFORMATION ABOUT THE SIZE AND COMPOSITION OF YEAREND DISTRIBUTIONS AROUND THANKSGIVING TO INVESTORS WHO CALL THE FIRM'S TOLLFREE TELEPHONE NUMBER TAX BENEFITS AREN'T THE ONLY REASON TO CONSIDER EUROPEAN STOCK FUNDS THESE DAYS INVESTMENT ADVISERS SAY EUROPEAN STOCKS AND STOCK FUNDS ARE APT TO BE GOOD INVESTMENTS TODAY WE'RE VERY BULLISH ON EUROPE IT'S OUR FAVORED AREA NOW SAYS BRUCE CLARK A SENIOR MANAGER AT PANAGORA ASSET MANAGEMENT A BOSTON MONEY MANAGER THAT TRIES TO ANTICIPATE MARKET RALLIES AROUND THE GLOBE SO FAR THIS YEAR EUROPEAN MARKETS HAVE AVERAGED TOTAL RETURNS PRICE CHANGE PLUS DIVIDENDS OF 107 IN DOLLAR TERMS WITHOUT CURRENCY HEDGING MEASURED IN LOCAL CURRENCIES THE GAINS HAVE BEEN EVEN MORE ROBUST AVERAGING 176 THE RECENT CRISIS AMONG EUROPEAN CURRENCIES ADDS TO THAT AREA'S INVESTMENT LUSTER IN PARTICULAR LOOSENING THE REGION'S EXCHANGERATE RESTRICTIONS HAS REIGNITED HOPES OF LOWER INTEREST RATES FASTER ECONOMIC GROWTH AND HIGHER SHARE PRICES IN EUROPE EUROPEAN MARKETS ARE GOING UP SAYS GT EUROPE GROWTH'S MR LEGAT WE HAVE QUITE A LONG WAY AHEAD OF US SO FAR THIS YEAR THE FUND'S NET ASSET VALUE HAS ALREADY INCREASED BY ABOUT 18 OF COURSE IF HE AND OTHER EUROPEAN ADVOCATES ARE RIGHT INVESTORS WHO WANT TO TAKE ADVANTAGE OF THE TAXLOSS CARRYFORWARDS WILL HAVE TO ACT SOON IF RECENT RALLIES IN EUROPEAN MARKETS KEEP UP THE FUNDS WILL EXHAUST THOSE BENEFITS FAIRLY QUICKLY 9308130097 930813 DAYS ARE NUMBERED FOR ILLGOTTEN GAINS UNDER SWISS REFORMS HOME OF SECRET BANK ACCOUNTS ENACTS LAWS TO SHED LIGHT ON ORGANIZED CRIME'S LOOT BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL ZURICH SECRETING MONEY AWAY IN A DISCREET SWISS BANK ACCOUNT ISN'T WHAT IT USED TO BE SWITZERLAND IS BUSILY CLEANING UP THE COUNTRY'S IMAGE AS A FAVORITE HAVEN FOR DUBIOUS FUNDS A WAVE OF RECENT LEGISLATION HAS MADE HIDING LOOT IN SWISS NUMBERED ACCOUNTS MORE DIFFICULT AND MORE NEW LAWS ARE IN THE MAKING SWITZERLAND OUTLAWED INSIDER TRADING IN 1988 MONEY LAUNDERING WAS BANNED THREE YEARS AGO TODAY'S SWISS GNOMES MUST SCRUPULOUSLY IDENTIFY THEIR CUSTOMERS OR RISK A RUNIN WITH SWISS INVESTIGATORS AND THIS SUMMER THE SWISS GOVERNMENT PRESENTED THE PARLIAMENT WITH DRAFT LEGISLATION DESIGNED TO HELP THE INTERNATIONAL FIGHT AGAINST ORGANIZED CRIME IN PRESENTING THE DRAFT THE GOVERNMENT SAID THE SWISS FINANCIAL CENTER WAS MISUSED TO A CERTAIN EXTENT IN THE FUNCTION OF A TURNTABLE A LOGISTICAL CENTER FOR ORGANIZED CRIME THE GOVERNMENT ADDED THAT IN INTERNATIONAL OPERATIONS AGAINST MONEY LAUNDERING ALL LARGE FINANCIAL CENTERS MUST WORK TOGETHER UNDER THE DRAFT ANYONE WHO ASSISTS A CRIMINAL ORGANIZATION FACES UP TO FIVE YEARS IN PRISON FUNDS TRACED TO ORGANIZED CRIME CAN BE SEIZED FINANCIAL PROFESSIONALS ARE GIVEN THE RIGHT TO REPORT SUSPICIOUS FUNDS TO AUTHORITIES WITHOUT OFFENDING SWISS SECRECY LAWS NOT INCLUDED IN THE CURRENT PROPOSAL BUT ON THE GOVERNMENT DRAWING BOARD IS THE ESTABLISHMENT OF A FEDERAL AGENCY WITH ABOUT 10 FULLTIME OFFICERS RESPONSIBLE FOR COORDINATING SWITZERLAND'S DEFENSE AGAINST CRIMINAL ORGANIZATIONS WITH THESE MEASURES SWITZERLAND WILL BE WELLPLACED FOR THE FIGHT AGAINST ORGANIZED CRIME SAID FEDERAL JUSTICE DEPARTMENT SPOKESMAN FOLCO GALLI PARLIAMENT IS EXPECTED TO APPROVE THE NEW LAWS RELATIVELY EASILY ALTHOUGH DETAILS MAY LEAD TO LENGTHY DISCUSSION BECAUSE OF THE DRUG TRADE WE HAVE ALWAYS PUSHED FOR A STRONG LAW AGAINST ORGANIZED CRIME SAID ANNAMARIE KAPPELER SECRETARY AT THE BUSINESSORIENTED RADICAL DEMOCRATIC PARTY A MEMBER OF THE COALITION GOVERNMENT SWISS BANKERS ASSOCIATION FIRST SECRETARY ANDREAS HUBSCHMID SAID HIS ORGANIZATION'S BOARD WILL DISCUSS THE PROPOSALS ON AUG 25 WE AGREE WITH THE INTENT OF THE LEGISLATION HE SAID BANK SECRECY WAS NEVER MEANT TO COVER UP FOR MONEY LAUNDERERS AND CRIMINAL ORGANIZATIONS NEVERTHELESS SOME LEGAL EXPERTS WARN AGAINST OVERREGULATION UNIVERSITY OF BERN LAW PROFESSOR GUNTHER ARZT SUGGESTS THAT TURNING A BANK EMPLOYEE INTO AN AMATEUR SHERLOCK HOLMES COULD LEAD TO A LOAD OF UNNECESSARY INVESTIGATIONS BE THAT AS IT MAY THE GROUP OF SEVEN'S FINANCIAL ACTION TASK FORCE ON MONEY LAUNDERING LAUDS SWITZERLAND THE PROGRESS ACCOMPLISHED BY SWITZERLAND IN THE FIGHT AGAINST MONEY LAUNDERING DESERVES RECOGNITION THE FATF 199293 ANNUAL REPORT READS THE SWISS SYSTEM COULD SERVE AS AN EXAMPLE TO OTHER MEMBER GOVERNMENTS IN A FURTHER LEGISLATIVE MOVE THE GOVERNMENT HAS GIVEN LAWYERS AND BANKERS UNTIL THE END OF NEXT MONTH TO COMMENT ON PROPOSED MEASURES TO SPEED UP THE HANDLING OF CASES WHERE FOREIGN GOVERNMENTS REQUEST INFORMATION ON SWISS BANK ACCOUNTS THE ISSUE IS SPOTLIGHTED CURRENTLY BY ITALIAN REQUESTS FOR INFORMATION ON SWISS ACCOUNTS ALLEGEDLY INVOLVED IN ITALY'S CORRUPTION SCANDALS MANY SWISS LAWYERS FAVOR ACCELERATING THE SWISS GOVERNMENT'S ABILITY TO DECIDE WHETHER TO GIVE ASSISTANCE TO FOREIGN GOVERNMENTS UNDER THE CURRENT SYSTEM A RESPONSE CAN TAKE YEARS IN CONTROVERSIAL CASES AS LAWYERS FIGHT ASSISTANCE THROUGH A COMPLICATED APPEALS SYSTEM SERGIO SALVIONI THE LAWYER REPRESENTING THE PHILIPPINE GOVERNMENT IN ITS NEARLY DECADELONG FIGHT TO RECOUP FUNDS DEPOSITED BY FORMER PRESIDENT FERDINAND MARCOS IN SWISS BANK ACCOUNTS SAID WE URGENTLY NEED A SPEEDIER SYSTEM MARCOS FAMILY LAWYER BEAT VON RECHENBERG AGREED THAT THE SWISS SYSTEM TAKES TOO LONG STILL HE INSISTS INDIVIDUAL RIGHTS MUST BE RESPECTED 9308130096 930813 BASS GROUP AND CHASE MANHATTAN OFFER TO BUY PRUDENTIAL'S REINSURANCE UNIT BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL PRUDENTIAL INSURANCE CO OF AMERICA WHICH IS SEEKING 12 BILLION FOR ITS REINSURANCE UNIT HAS RECEIVED AN OFFER FROM AN INVESTMENT GROUP LED BY TEXAS INVESTOR ROBERT BASS AND CHASE MANHATTAN CORP THE BASS GROUP'S OFFER WHICH WASN'T DISCLOSED IS BELIEVED TO BE ONE OF ONLY A FEW THAT PRUDENTIAL HAS RECEIVED FOR THE UNIT PRUDENTIAL REINSURANCE CO THE COUNTRY'S FIFTHLARGEST REINSURER BIDDING CLOSED JULY 28 ALTHOUGH PRUDENTIAL HAS YET TO MAKE AN ANNOUNCEMENT REGARDING THE SALE ONE IS EXPECTED SHORTLY PRUDENTIAL WHICH IS BASED IN NEWARK NJ HAS SAID IT WON'T SELL THE COMPANY UNLESS IT GETS AT LEAST 12 BILLION WHEN IT PUT THE UNIT UP FOR SALE IN MARCH IT CITED STRONG INVESTOR DEMAND FOR REINSURANCE COMPANIES THAT DEVELOPED AFTER LAST YEAR'S HURRICANE ANDREW ANALYSTS SAY THAT INVESTORS STILL ARE INTERESTED IN REINSURANCE BUT THAT PRUDENTIAL IS SIMPLY SEEKING TOO MUCH MONEY FOR PRU RE THEY BELIEVE THE COMPANY IS WORTH 100 MILLION LESS THAN THE AMOUNT SOUGHT BY PRUDENTIAL AND THEY ADD THAT THERE ARE FEW BUYERS CAPABLE OF ACQUIRING A COMPANY THE SIZE OF PRU RE THE BASS GROUP IS MAKING THE BID THROUGH INSURANCE PARTNERS LP AN INVESTMENT FUND NOW IN FORMATION TERMS OF ITS OFFER COULD NOT BE LEARNED PRUDENTIAL DECLINED COMMENT INSURANCE PARTNERS LP IS MADE UP OF KEYSTONE PARTNERS MR BASS'S INVESTMENT VEHICLE CHASE MANHATTAN AND CENTRE REINSURANCE HOLDINGS LTD A BERMUDABASED REINSURANCE COMPANY MOSTLY OWNED BY ZURICH INSURANCE CO ONE OF THE WORLD'S LARGEST INSURERS THE THREE GROUPS WHICH HAVE COMMITTED 200 MILLION TO THE FUND ARE SEEKING ANOTHER 200 MILLION FROM INSTITUTIONAL INVESTORS AND OTHER SOURCES THE FUND'S OBJECTIVE IS TO EARN HEFTY RETURNS BY DOING LEVERAGEDBUYOUTS OF INSURANCE COMPANIES PRIMARILY PROPERTY AND CASUALTY INSURERS ACCORDING TO AN OFFERING DOCUMENT FOR THE FUND KEYSTONE AND CENTRE RE HAVE TEAMED UP BEFORE THEY WERE PARTNERS IN THE 1990 ACQUISITION OF NATIONAL REINSURANCE CORP AND THE 1 BILLION ACQUISITION OF HOME INSURANCE CORP LED BY SWEDISH INSURANCE GIANT TRYGGHANSA THEIR INVESTMENTS HAVE AVERAGED RETURNS OF 60 A YEAR ON EQUITY AND 30 A YEAR ON DEBT ACCORDING TO THE DOCUMENT PRUDENTIAL WANTS TO SELL PRU RE BECAUSE IT CONSIDERS IT INCONSISTENT WITH ITS CORE BUSINESSES OF RETAIL FINANCIAL PRODUCTS EMPLOYEE BENEFITS AND ASSET MANAGEMENT PRUDENTIAL COULD TRY TO TAKE PRUDENTIAL REPUBLIC IF IT DOESN'T FIND A BUYER BUT ANALYSTS SAY PRUDENTIAL WOULD HAVE TO KEEP A PORTION OF THE COMPANY IF IT WENT THAT ROUTE BESIDES PRUDENTIAL WOULD HAVE A TOUGH TIME CONVINCING PUBLIC INVESTORS TO PURCHASE A COMPANY PASSED UP BY SOPHISTICATED FINANCIAL BUYERS 9308130095 930813 POLITICS & POLICY EPA MULLS CHARGING ALYESKA PIPELINE WITH POLLUTION VIOLATIONS DATING TO '70S BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL FEDERAL REGULATORS ARE CONSIDERING CHARGING ALYESKA PIPELINE SERVICES CO WITH AIR POLLUTION VIOLATIONS DATING BACK TO THE LATE 1970S WHICH COULD EXPOSE THE CONSORTIUM TO SUBSTANTIAL FINES ALYESKA OPERATES THE TRANSALASKA PIPELINE AND THE OIL TANKER LOADING COMPLEX IN VALDEZ ALASKA IT IS OWNED BY EXXON CORP BRITISH PETROLEUM CO ATLANTIC RICHFIELD CO AND THE OTHER BIG OIL COMPANIES THAT WORK ALASKA'S NORTH SLOPE OIL FIELDS IT HAS BEEN ENGAGED IN A RUNNING BATTLE RECENTLY WITH REGULATORS CONGRESSIONAL INVESTIGATORS AND A HOST OF WHISTLEBLOWERS OVER ALLEGED VIOLATIONS OF SAFETY CODES AND ENVIRONMENTAL REGULATIONS IN THE LATEST DISPUTE THE ENVIRONMENTAL PROTECTION AGENCY IS EXPLORING POSSIBLE CHARGES AGAINST ALYESKA UNDER THE FEDERAL CLEAN AIR ACT BECAUSE OF A LONGSTANDING ALYESKA PRACTICE OF STORING OIL AT THREE REMOTE PUMPING STATIONS ALONG THE PIPELINE IN STANDBY TANKS DESIGNED TO BE USED ONLY DURING EMERGENCIES THE EMERGENCY TANKS HAVE NO MECHANISM FOR TRAPPING OR BURNING OFF TOXIC VAPORS AS STANDARD TANKS DO CONSEQUENTLY THOUSANDS OF POUNDS OF BENZENE TOLUENE AND OTHER POLLUTANTS ESCAPE DIRECTLY INTO THE ATMOSPHERE THROUGH VENTS IN THE STORAGE TANKS THE PROBLEM KNOWN AS VENTING HAS BEEN GOING ON AT LEAST SINCE 1978 ACCORDING TO EPA REGULATORS AND ALYESKA HOWEVER EPA OFFICIALS SAY THEY WEREN'T AWARE OF THE VENTING UNTIL A FEW MONTHS AGO WHEN THEY WERE TIPPED OFF BY CHARLES HAMEL A LONGTIME ALYESKA CRITIC AND WHISTLEBLOWER MEANWHILE THOUSANDS OF TONS OF TOXIC FUMES HAVE BEEN SPEWING EACH YEAR FROM THE TANKS UNDER FEDERAL LAW COMPANIES USUALLY MUST NOTIFY REGULATORS ANY TIME THEY DO SOMETHING THAT INCREASES HYDROCARBON EMISSIONS BY MORE THAN 40 TONS A YEAR ALYESKA DOESN'T DENY THAT THE POLLUTANTS ARE ESCAPING BUT HAS ARGUED THAT REGULATIONS IN EFFECT DURING THE LATE 1970S DIDN'T BAR THE VENTING HOWEVER IN A LETTER SENT TO ALYESKA LATE LAST MONTH ANN PONTIUS CHIEF OF THE AIRQUALITY BRANCH OF THE EPA'S SEATTLE REGIONAL OFFICE REJECTED THAT CONTENTION SHE GAVE ALYESKA UNTIL THE END OF THIS MONTH TO COME UP WITH EVIDENCE THAT THE EMISSIONS AREN'T ILLEGAL WE THINK THESE ARE IMPERMISSIBLE AND WE SHOULD HAVE BEEN INFORMED OF THEM LONG AGO SAID ONE EPA OFFICIAL UNDER THE CLEAN AIR ACT SUCH EMISSIONS IF NOT AUTHORIZED BY PERMITS OR OTHER REGULATORY AGREEMENTS CAN RESULT IN FINES OF AS MUCH AS 25000 A DAY FOR A MAXIMUM OF FIVE YEARS GIVEN THAT BOTH THE EPA AND ALYESKA AGREE THAT THE VENTING HAS BEEN GOING ON ALMOST DAILY FOR MORE THAN A DECADE THE POTENTIAL FINE COULD BE SUBSTANTIAL AN ALYESKA SPOKESWOMAN SAID THE CONSORTIUM BELIEVES THE VENTING HASN'T VIOLATED ANY LAWS AND THAT IT HAS PERMITS THAT ALLOW THE PRACTICE SHE ALSO SAID ALYESKA INFORMED THE EPA OF THE VENTING IN THE LATE 1980S HOWEVER EPA OFFICIALS DENY THAT THEY WERE INFORMED OF THE FULL EXTENT OF THE VENTING AND ITS CAUSE AND ADDED THAT THE AGENCY KNOWS OF NO PERMITS THAT WOULD ALLOW IT 9308130094 930813 FINANCING BUSINESS LESCO INC LESCO INC SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION THE PROPOSED SALE OF 1431000 COMMON SHARES THE ROCKY RIVER OHIO COMPANY SAID IT PLANS TO SELL 1155000 COMMON SHARES AND CERTAIN SHAREHOLDERS PLAN TO SELL 276000 ROBERTSON STEPHENS & CO SAN FRANCISCO AND MCDONALD & CO SECURITIES INC CLEVELAND WOULD BE UNDERWRITERS FOR THE OFFERING LESCO SAID THE MAKER AND MARKETER OF TURFCARE PRODUCTS SAID ITS NET PROCEEDS WOULD BE USED TO REDUCE DEBT AND TO FINANCE GROWTH OF THE COMPANY 9308130093 930813 THE VILLAGE HEARINGAID DEALER IS DRAWING UP EXPANSION PLANS BY STEVE STECKLOW STAFF REPORTER OF THE WALL STREET JOURNAL LENOX MASS HERE'S GOOD NEWS FOR MICK JAGGER GROUND WILL BE BROKEN SOON HERE FOR THE NATION'S FIRST RETIREMENT HOME FOR AGING ROCK STARS WELL NOT JUST ROCK STARS BLUES MUSICIANS JAZZ PLAYERS COUNTRY SINGERS EVEN CLASSICAL VIOLINISTS CAN BE INCLUDED PROVIDED THEY MEET THE REQUIREMENTS AND NOT ALL THE ROOMS ARE TAKEN THE HOME IS THE BRAINCHILD OF THE NATIONAL MUSIC FOUNDATION A NONPROFIT GROUP WITH MANY MUSIC NOTABLES ON ITS BOARD INCLUDING AS CHAIRMAN THE SEEMINGLY AGELESS DICK CLARK FOR THE RECORD MR CLARK DOESN'T PLAN TO MOVE IN WHEN THE PLACE OPENS IN 1995 AFTER GETTING INVITATIONS FROM 60 SITES IN 14 STATES THE GROUP PICKED A SCENIC 63ACRE SPREAD IN LENOX FOR A NATIONAL MUSIC CENTER AND MOVED THERE IN JUNE THE GROUP BOUGHT THE PROPERTY FORMERLY A FUNDAMENTALIST BIBLE CENTER FOR 21 MILLION TO BE PAID OVER 20 YEARS ASSUMING IT CAN RECEIVE THE PROPER LOCAL ZONING PERMITS THE FOUNDATION ENVISIONS SETTING UP MUCH MORE THAN A RETIREMENT HOME PLANS CALL FOR AN INTERACTIVE MUSEUM DEDICATED TO AMERICAN MUSIC TWO PERFORMANCE CENTERS A MUSIC ARCHIVE A LIBRARY A RADIO PRODUCTION FACILITY AND A RECORDING STUDIO LIVE CONCERTS AND FUNDRAISERS ALREADY ARE BEING HELD BUT ORGANIZERS AGREE THAT THE RETIREMENT HOME WILL BE A FIRST THE FOUNDATION HOPES TO BUILD 150 FIRSTCLASS UNITS INCLUDING WHIRLPOOLS A MUSIC ROOM AND A PLACE TO PLAY CARDS RESIDENTS WILL BE EXPECTED TO CONDUCT WORKSHOPS AND PERFORM IF THEY ARE STILL UP TO IT SOME OF THE UNITS WILL BE SUBSIDIZED FOR THOSE WHO WILL NOT BE ABLE TO RETIRE ON THEIR OWN SAYS GLORIA PENNINGTON THE FOUNDATION'S PRESIDENT AND CHIEF EXECUTIVE THAT COULD INCLUDE SOME ONCEBIG NAMES SHE SAYS NOTING THAT BAND LEADER WOODY HERMAN DIED PENNILESS AN AD FOR THE FOUNDATION HEADLINED WILL KIDS A HUNDRED YEARS FROM NOW STILL KNOW DIDDLEY SAYS SEMINAL BLUES SINGER BIG JOE WILLIAMS ONCE HAD TO SLEEP IN THE BASEMENT OF A CHICAGO RECORD STORE REQUIREMENTS FOR ADMISSION TO THE RETIREMENT HOME ARE STILL BEING WORKED OUT AT THE MOMENT THE FOUNDATION EXPECTS THE MINIMUM AGE TO BE 55 MR JAGGER STILL RECORDING SOLO AND WITH THE ROLLING STONES RECENTLY TURNED 50 SO IN FIVE YEARS HE COULD COME ON SAYS MS PENNINGTON WOULDN'T THAT BE GREAT 9308130092 930813 YOUR MONEY MATTERS WEEKEND REPORT DISABILITY CLAIMS CAN BE TOUGH TO COLLECT BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL LAWRENCE HANDLEMAN A REDWOOD CITY CALIF TRIAL LAWYER WITH TWO YOUNG CHILDREN BOUGHT A DISABILITY INSURANCE POLICY IN 1981 A YEAR LATER HE WAS DIAGNOSED WITH MULTIPLE SCLEROSIS A DEGENERATIVE DISEASE THAT OVER TIME MADE IT DIFFICULT FOR HIM TO SPEAK CLEARLY OR STAND HE BECAME UNABLE TO TRY CASES AND HIS BUSINESS AND MARRIAGE DISSOLVED BUT WHEN HE FINALLY APPLIED FOR HIS DISABILITY BENEFITS IN 1989 HIS INSURER REFUSED TO PAY NOW AFTER 20 YEARS OF DEFENDING INSURANCE COMPANIES AGAINST POLICYHOLDER LAWSUITS MR HANDLEMAN 50 YEARS OLD IS HIMSELF SUING HIS INSURER WASHINGTON NATIONAL LIFE INSURANCE CO A LAWYER FOR WASHINGTON NATIONAL LIFE DECLINES TO COMMENT IN A RESPONSE TO MR HANDLEMAN'S COMPLAINT FILED IN FEDERAL COURT IN SAN FRANCISCO THE INSURER CONTENDS MR HANDLEMAN FAILED TO COMPLY WITH THE NOTICE PROVISIONS OF HIS POLICY MR HANDLEMAN'S LAWYER NIKOLAI TEHIN SAYS THE INSURANCE COMPANY WOULDN'T PROCESS HIS CLIENT'S CLAIM BECAUSE HE FAILED TO INCLUDE A MEDICAL CERTIFICATE FROM A DOCTOR WHEN HE INITIALLY SUBMITTED IT HE SAYS THE INSURER HAS CONTINUED TO REFUSE TO PAY EVEN THOUGH HIS CLIENT WHO NOW LIVES ALONE AND USES A WHEELCHAIR LATER SUPPLIED LETTERS FROM HIS DOCTORS SAYING HE IS DISABLED MR HANDELMAN'S SITUATION MAY NOT BE UNUSUAL STATE INSURANCE DEPARTMENT OFFICIALS PLAINTIFFS LAWYERS AND EVEN INSURANCE EXECUTIVES SAY A GROWING NUMBER OF PEOPLE ACROSS THE COUNTRY ARE BEING DENIED DISABILITY BENEFITS BECAUSE THEY DIDN'T FILL OUT THEIR FORMS CORRECTLY OR FAILED TO FOLLOW COMPLEX PROCEDURES FOR FILING CLAIMS AND EVEN THOUGH THEY ARE DISABLED ACCORDING TO MEDICAL EXPERTS THEY AREN'T DISABLED ACCORDING TO STRICTLY ENFORCED BUT OFTEN UNDISCLOSED OR SUBJECTIVE DEFINITIONS MILLIONS OF AMERICANS ARE COVERED BY DISABILITY INSURANCE WHICH TOGETHER WITH SOCIAL SECURITY PAYMENTS IS GENERALLY SUPPOSED TO REPLACE ABOUT TWOTHIRDS OF A DISABLED PERSON'S INCOME ABOUT 43 MILLION EMPLOYEES HAVE DISABILITY COVERAGE PROVIDED THROUGH COMPANYBENEFIT PLANSCOVERAGE THAT ACCOUNTS FOR NEARLY 10 OF THE HEALTHCARE DOLLARS EMPLOYERS SPEND MEANWHILE PEOPLE WILL ALSO PAY NEARLY 4 BILLION THIS YEAR TO BUY INDIVIDUAL POLICIES FINANCIAL ADVISERS SAY DISABILITY COVERAGE IS ONE TYPE OF INSURANCE MOST WORKING PEOPLE SHOULD CONSIDER THOSE WHO DON'T HAVE IT THROUGH THEIR EMPLOYERS SHOULD TRY TO BUY INDIVIDUAL POLICIES ADVISERS SAY THIS DESPITE THE FACT THAT PREMIUMS FOR INDIVIDUAL POLICIES CAN BE 2 TO 3 OF INCOME OR MORE WHEN IT WORKS THE WAY IT IS SUPPOSED TO DISABILITY COVERAGE CAN INDEED BE A BLESSING JUST ASK CLARENCE NOBLE A 53YEAROLD MAINTENANCE MANAGER FOR ANHEUSERBUSCH COS IN JACKSONVILLE FLA WHEN HE MISSED MORE THAN 16 MONTHS OF WORK FOLLOWING BACK SURGERY IN 1991 THE GROUP DISABILITY POLICY HIS EMPLOYER HAD FROM UNUM LIFE INSURANCE CO PAID MOST OF HIS SALARY FOR NINE MONTHS OF HIS RECUPERATION IT WAS A GODSEND SAYS MR NOBLE INSURANCE INDUSTRY OFFICIALS SAY THAT THE MAJORITY OF PEOPLE WITH DISABILITY COVERAGE HAVE NO TROUBLE WITH THEIR CLAIMS POLICYHOLDERS CAN AVOID PROBLEMS INSURERS SAY BY TAKING TIME TO READ AND UNDERSTAND THEIR POLICIES PAYING ATTENTION TO EXCLUSION PERIODS PROCEDURES FOR FILING CLAIMS AND DEADLINES IT'S ALSO VITAL TO FILL OUT THE APPLICATIONS CAREFULLY WHEN IN DOUBT ANSWER FULLY SAYS ELAINE ROSEN SENIOR VICE PRESIDENT OF EMPLOYEE BENEFITS AND GROUP DISABILITY AT UNUM THE FOURTHLARGEST ISSUER OF INDIVIDUAL DISABILITY COVERAGE BASED IN PORTLAND MAINE STILL EVEN SOME INSURANCE INDUSTRY EXECUTIVES AGREE THAT POLICYHOLDERS DON'T ALWAYS GET THE TREATMENT THEY EXPECT AND DESERVE WE KNOW THERE ARE DISABILITY INSURERS WHO LOOK FOR WAYS NOT TO PAY CLAIMS SAYS MS ROSEN NO STATE OR FEDERAL AGENCY TRACKS COMPLAINTS ABOUT DISABILITY POLICIES BUT AT A TIME WHEN RISING MEDICAL COSTS ARE PUTTING PRESSURE ON INSURERS AND EMPLOYERS STATE INSURANCE DEPARTMENT OFFICIALS SAY THEY HAVE BEEN HEARING INCREASED COMPLAINTS THE INSURANCE COMPANIES SEEM TO FALL INTO TWO GROUPS THOSE THAT ARE IN THE BUSINESS OF PAYING CLAIMS AND THOSE THAT ARE IN THE BUSINESS OF COLLECTING PREMIUMS BUT NOT PAYING CLAIMS SAYS ROBERT SCHNEIDER ASSOCIATE COMMISSIONER FOR CONSUMER SERVICES FOR THE TEXAS DEPARTMENT OF INSURANCE FINANCIAL ADVISERS LAWYERS AND INSURANCE PROFESSIONALS ALSO SAY THEY'RE SEEING AN UPSURGE IN CLAIM DENIALS INSURERS ARE MORE AGGRESSIVE AND ABLE TO DENY CLAIMS FOR THE FLIMSIEST REASONS SAYS BARBARA PAULL A FORMER INSURANCE EXECUTIVE IN LOS ANGELES WHO OFTEN SERVES AS AN EXPERT WITNESS FOR BOTH PLAINTIFFS AND DEFENDANTS IN MANY CASES LAWYERS AND INSURANCE ADVISERS SAY PEOPLE NEVER SEEK HELP IN PRESSING THEIR CASES NOT ONLY ARE THEY LESS ABLE TO TAKE CARE OF THEIR NEEDS FOLLOWING A DISABILITY BUT THEIR CLAIMS ARE OFTEN TOO PUNY TO INTEREST LAWYERS IN ADDITION IF THE DISABILITY PLAN IS PROVIDED BY AN EMPLOYER IN MOST CASES FEDERAL LAW PREVENTS EMPLOYEES FROM RECOVERING DAMAGES EVEN IF A COURT DETERMINES IT ACTED UNFAIRLY TO DENY A CLAIM PEOPLE CAN HAVE THEIR CLAIMS DENIED FOR A VARIETY OF REASONS LARRY ZEMLIN 62 AN ENGINEER FOR AEROSPACE CORP SINCE 1967 SUFFERED SEVERE HEAD INJURIES WHEN HE WAS STRUCK BY A CAR IN THE COMPANY PARKING LOT IN EL SEGUNDO CALIF IN 1988 ALTHOUGH HE INSISTED ON RETURNING TO WORK FOUR MONTHS AFTER HIS INJURY HIS SHORTTERM MEMORY WAS SEVERELY IMPAIRED HE COULDN'T MAKE CHANGE IN A TACO BELL SAYS HIS LAWYER TIM MORRIS MR ZEMLIN RUEFULLY AGREES MY BOSS SAID YOU'RE USELESS TO ME' HE SAYS HE HAD TO TAPE RECORD HIS BOSS'S INSTRUCTIONS BECAUSE HE'D FORGET THEM BY THE TIME HE RETURNED TO HIS OFFICE MR ZEMLIN HAS ALSO FORGOTTEN THE YEAR OF HIS ACCIDENT NEVERTHELESS HE MUDDLED ON IN HIS JOB FOR ANOTHER YEAR AND A HALF THEN SUFFERING FROM A BOUT OF VERTIGO THAT HAD OCCURRED PERIODICALLY FOLLOWING HIS HEAD INJURY HE FELL IN A STAIRWELL AND AGAIN SUSTAINED BRAIN DAMAGE HE NEVER RETURNED TO WORK HE RETIRED AND MOVED TO SANTA FE NM MR ZEMLIN'S LAWYER SAYS HE SHOULD HAVE BEEN ENTITLED TO A ONETIME LUMPSUM PAYMENT OF AT LEAST 70000 FROM COMMERCIAL LIFE INSURANCE CO THE COMPANY THAT PROVIDED THE DISABILITY PLAN AT AEROSPACE CORP BUT THE INSURER SAID HE WASN'T DISABLED UNDER THE TERMS OF THE POLICY BECAUSE HE WAS WORKING 180 DAYS AFTER THE FIRST ACCIDENT IT ALSO SAID HIS SECOND ACCIDENT WAS THE RESULT OF AN ILLNESS VERTIGO NOT AN INJURY SO WASN'T COVERED MR ZEMLIN SUED SEEKING PAYMENT FROM THE INSURER A LAWYER FOR COMMERCIAL LIFE SAYS THE POLICY LANGUAGE IS CLEAR THE CASE IS SCHEDULED FOR TRIAL IN A FEDERAL COURT IN LOS ANGELES IN FEBRUARY BUT LAST YEAR HER INSURER REFUSED TO PAY HER CLAIM OF 2550 FOR ONE MONTH OF LOST INCOME FOLLOWING NECK SURGERY AND SUED TO RESCIND HER COVERAGE IN PAPERS FILED IN FEDERAL COURT IN SAN FRANCISCO THE INSURER SAID MS BLAIR HADN'T DISCLOSED ON HER APPLICATION THAT SHE IN THE PAST EXPERIENCED HEADACHES FATIGUE ALLERGIES BACK PAIN SINUS PROBLEMS LACTOSE INTOLERANCE AND ATHLETE'S FOOT J CHRISTOPHER COLLINS ASSISTANT GENERAL COUNSEL FOR PAUL REVERE IN WORCESTER MASS SAYS THAT IF PAUL REVERE'S UNDERWRITERS HAD KNOWN THIS INFORMATION THEY WOULDN'T HAVE ISSUED THE COVERAGE MS BLAIR A SINGLE MOTHER WITH A NINEYEAROLD DAUGHTER COUNTERSUED SAYING SHE HADN'T MISREPRESENTED HERSELF BY FAILING TO MENTION CONDITIONS SHE THOUGHT TRIVIAL AND IRRELEVANT LATE LAST YEAR A FEDERAL JURY IN SAN FRANCISCO AGREED CONCLUDING THAT PAUL REVERE HAD ACTED IN BAD FAITH AND AWARDED BENEFITS ATTORNEY'S FEES AND 25000 AND IT REINSTATED THE POLICY IN GENERAL CLAIMS FROM PEOPLE IN GROUP PLANS AREN'T DENIED ON THE GROUNDS THAT THEY MISREPRESENTED THEMSELVES BECAUSE THEY USUALLY AREN'T REQUIRED TO TAKE MEDICAL EXAMS OR FILL OUT APPLICATIONS BUT THEY DO GET DENIED FOR PROCEDURAL MISTAKES WHEN SUSAN VALE A QUALITY CONTROL INSPECTOR WITH HEWLETTPACKARD CO WAS DIAGNOSED WITH MULTIPLE SCLEROSIS IN 1988 SHE CONTINUED TO WORK PARTTIME BECAUSE HER BENEFITS ADMINISTRATOR SAID THIS WOULDN'T AFFECT HER BENEFITS FINALLY UNABLE TO WORK IN 1991 SHE APPLIED FOR HER BENEFITS UNDER HEWLETTPACKARD'S SELFINSURED INCOME PROTECTION PLAN THIS WOULD HAVE PAID HER TWOTHIRDS OF HER PAY MINUS SOCIAL SECURITY FOR A MONTHLY TOTAL OF 425 BUT THE PLAN DIDN'T PAY BECAUSE MS VALE CONTINUED TO WORK PARTTIME THE COMPANY SAID SHE TECHNICALLY WASN'T DISABLED UNDER THE TERMS OF THE PLAN THE CATCH22 OF MANY DISABILITY PLANS IS THAT THEY EFFECTIVELY EXCLUDE CONDITIONS WITH A PROGRESSIVE ONSET LIKE MULTIPLE SCLEROSIS LOU GEHRIG'S DISEASE HUNTINGTON'S PROGRESSIVE DIABETES AND ARTHRITIS AND AIDS SAYS MELVIN SILVER A SAN JOSE LAWYER WHO REPRESENTED MS VALE MS VALE SUED HER EMPLOYER IN FEDERAL COURT IN SAN FRANCISCO AND NEGOTIATED A SETTLEMENT LAST YEAR HAL MIKELSON REGIONAL COUNSEL FOR HEWLETTPACKARD WOULDN'T COMMENT ON MS VALE'S CASE CITING EMPLOYEE CONFIDENTIALITY BUT HE SAYS EMPLOYEES RECEIVE DETAILED DESCRIPTIONS OF THEIR BENEFITS AND HAVE TO ABIDE BY THE RULES IN THE BOOK NOT BY THE ADVICE OF SOMEONE IN THE HUMAN RESOURCE DEPARTMENT IF YOU CALL THE IRS AND GET INCORRECT TAX ADVICE YOU'RE STILL RESPONSIBLE FOR THE ACTIONS YOU TAKE HE SAYS EVERY EMPLOYER REGRETS THE FACT THAT THERE HAVE TO BE RULES AND YOU HAVE TO ENFORCE THEM HE SAYS EVERY ONCE IN A WHILE YOU DON'T FALL INTO THE BOX IN WHICH THE RULES GIVE YOU THE BENEFITS 9308130091 930813 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 7/8 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 309 30 TO 59 DAYS 312 60 TO 89 DAYS 314 90 TO 119 DAYS 317 120 TO 161 DAYS 326 162 TO 179 DAYS 328 180 TO 239 DAYS 337 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 314 30 DAYS 317 60 DAYS 319 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 304 ONE MONTH 310 THREE MONTHS 327 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 306 60 DAYS 308 90 DAYS 311 120 DAYS 322 150 DAYS 322 180 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 687 60 DAYS 695 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 686 60 DAYS 696 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 9308130090 930813 JAPAN'S PC EXPORTS MORE THAN DOUBLED IN APRIL TO JUNE PERIOD SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S EXPORTS OF PERSONAL COMPUTERS MORE THAN DOUBLED IN APRIL TO JUNE WHILE DOMESTIC SHIPMENTS WERE FLAT FROM THE YEAREARLIER QUARTER THE JAPAN ELECTRONIC INDUSTRY DEVELOPMENT ASSOCIATION SAID THE SURGE IN EXPORTS COMES AMID CONTINUED CONCERN ABOUT JAPAN'S GROWING TRADE SURPLUS MEANWHILE THE ASSOCIATION SAID THE LITTLECHANGED PERFORMANCE OF DOMESTIC SHIPMENTS FOR THE SECOND CONSECUTIVE QUARTER POINTS TO AN INCUBATORY RECOVERY OF THE JAPANESE MARKET OVERSEAS AND DOMESTIC SHIPMENTS OF JAPANESE PCS ROSE 21 TO 635000 UNITS FROM 526000 UNITS EXPORTS ROSE TO 201000 UNITS FROM 92000 UNITS WHILE DOMESTIC MOVEMENT WAS UNCHANGED AT 434000 UNITS THE ASSOCIATION SAID THE DOMESTIC PC MARKET IS SEEN PICKING UP FURTHER ON THE BACK OF THE GOVERNMENT'S NEW SOCIAL INFRASTRUCTURE OUTLAYS TO FUND COMPUTER PURCHASES FOR SCHOOLS EXPORTS WERE FUELED BY CONTINUED STRONG DEMAND FOR 32BIT DESKTOP AND NOTEBOOKSTYLE UNITS THE ASSOCIATION SAID IT NOTED HOWEVER THAT MAKERS SHIFTED PRODUCTION OF DESKTOP UNITS OVERSEAS TO COUNTER THE EFFECTS OF THE STRONG YEN WHICH EATS INTO RETURNS ON EXPORTS FROM JAPAN DESPITE THE SKYROCKETING OF EXPORTS ON A UNIT BASIS SALES IN YEN TERMS EDGED UP ONLY 9 TO 811 BILLION YEN 7825 MILLION FROM 742 BILLION YEN REFLECTING BOTH THE EFFECTS OF THE JAPANESE CURRENCY'S APPRECIATION AND AGGRESSIVE DISCOUNTING CAMPAIGNS IN THE US AND EUROPE 9308130089 930813 LETTERS TO THE EDITOR HARVARD LAW'S LANDLORDTENANT WARS DAMIAN SCHLOMING'S JULY 16 EDITORIAL PAGE PIECE PITY THE POOR LANDLORDS OF CAMBRIDGE ABOUT HARVARD LAW SCHOOL'S TENANT ADVOCACY PROJECT CONTAINED A DESCRIPTION OF TAP THAT WAS DISTORTED AND FILLED WITH MISREPRESENTATIONS CRUCIAL TO THE UNDERSTANDING OF THIS ARTICLE IS ITS BACKGROUND AN ONGOING LOCAL FEUD MR SCHLOMING'S MOTHER IS AN ACTIVE MEMBER OF THE SMALL PROPERTY OWNERS' ASSOCIATION OF CAMBRIDGE A GROUP VEHEMENTLY OPPOSED TO RENT CONTROL AND TO TAP'S EXISTENCE BY ALLOWING AN OPPONENT OF TAP TO DEFINE THE ORGANIZATION YOU UNWITTINGLY MISPORTRAYED TAP'S EDUCATIONAL MISSION STUDENTS JOIN TAP TO PROVIDE LEGAL ASSISTANCE TO CAMBRIDGE RESIDENTS WHO OTHERWISE COULD NOT AFFORD LEGAL HELP IN MORE THAN 81 OF TAP'S CASES SINCE 1985 STUDENTS HAVE REPRESENTED TENANTS IN DISPUTES WITH THEIR LANDLORDS A FAR CRY FROM MR SCHLOMING'S CLAIM THAT TAP CASES RARELY INVOLVE TENANTS IN MANY OF OUR CASES TENANTS REQUEST ASSISTANCE FROM TAP IN DEFENDING A LANDLORD'S EVICTION ACTION MANY OF THESE CASES INVOLVE SERIOUS HEALTH CODE VIOLATIONS INCLUDING LEAD PAINT INSECT AND RODENT INFESTATION LACK OF A SAFE EGRESS AND LACK OF HEAT THE TAP BOARD AND SUPERVISING ATTORNEYS ENCOURAGE TAP MEMBERS TO MEDIATE CASES WHENEVER POSSIBLE BOTH INFORMAL ADVICE CASES AND MORE FORMAL RENT CONTROL BOARD MATTERS MEMBERS REALIZE THAT A LANDLORD AND TENANT MUST LIVE TOGETHER EVEN AFTER TAP'S INVOLVEMENT IN A CASE ENDS AND THEREFORE ENCOURAGE TENANTS TO WORK WITH LANDLORDS RATHER THAN TO HASSLE THEM IN AN ADVERSARIAL CONTEXT THE RENT CONTROL BOARD ALSO HAS AUTHORIZED TAP TO REPRESENT THE INTERESTS OF CAMBRIDGE TENANTSATLARGE IN CASES INVOLVING THE RENT CONTROL STATUS OF PARTICULAR HOUSING UNITS IN CAMBRIDGE THAT OWNERS HAVE TAKEN OFF THE RENTAL MARKET BY CHARACTERIZING TAP'S ACTIVITY IN THESE CASES AS ANTILANDLORD HOSTILITY MR SCHLOMING FAILS TO TAKE INTO ACCOUNT THAT TAP'S POSITION IS THAT THE EXISTING LAW SHOULD BE EVENLY APPLIED AND ENFORCED RENT CONTROL IS THE LAW IN CAMBRIDGE ENACTED BY A DEMOCRATIC LEGISLATURE AND UPHELD IN MULTIPLE JUDICIAL CHALLENGES AS CONSTITUTIONAL THE LAW SHOULD BE APPLIED CONSISTENTLY IF IT IS TO BE APPLIED AT ALL TAP ALSO ENABLES LAW STUDENTS TO DEVELOP ORAL AND WRITTEN ADVOCACY SKILLS IN A CLINICAL SETTING IN QUESTIONING THE EXTENT OF STUDENT INVOLVEMENT IN TAP CASES MR SCHLOMING FAILS TO NOTE THAT A TAP MEMBER WORKS ON A CASE MANY MONTHS AND IN SOME CASES OVER A YEAR BEFORE THE RENT CONTROL BOARD HEARS THE MATTER WHEN ASSIGNED TO A CASE A TAP STUDENT MEETS WITH TENANTS AND WITNESSES PREPARES EVIDENTIARY EXHIBITS AND DOES LEGAL RESEARCH IN PREPARATION FOR A FACTFINDING HEARING BEFORE THE RENT CONTROL BOARD HEARING EXAMINER ONE OF OUR SUPERVISING ATTORNEYS GUIDES THE STUDENT EXTENSIVELY DURING THE INVESTIGATIVE PROCESS YET THE ATTORNEY DOES NONE OF THE LEGWORK ON THE INVESTIGATION IF A CASE GOES TO HEARING THE TAP STUDENT CONDUCTS THE ENTIRE FACTFINDING HEARING LEARNING VALUABLE TRIAL AND LEGAL SKILLS AT FINAL HEARINGS BEFORE THE RENT CONTROL BOARD OUR SUPERVISING ATTORNEYS OCCASIONALLY SUPPLEMENT THE ARGUMENTS OF A TAP STUDENT TO ENSURE THAT WE PRESENT THE STRONGEST CASE POSSIBLE ON BEHALF OF OUR CLIENTS BEFORE THE BOARD WE ARE NOT LAWYERS AND THE LEARNING OF A TAP MEMBER SHOULD NOT COME AT THE EXPENSE OF A TENANT LOSING HIS OR HER HOME NAME AS THE SMALL LANDLORDS OF CAMBRIDGE SUFFER UNDER THE TYRANNY OF PUBLIC POLICY GONE AMOK IN THE FORM OF THAT CITY'S RENT CONTROL REGULATIONS I AM PLEASED TO SEE SOMEONE DISCLOSE THE SUPPORT THAT TENANTS IN CAMBRIDGE OFTEN FINANCIALLY COMFORTABLE AND HIGHLY EDUCATED RECEIVE FROM HARVARD'S CLINICAL PROGRAM DURING MY ATTENDANCE AT THE LAW SCHOOL FROM 1988 THROUGH 1991 I WORKED WITH SEVERAL LIKEMINDED STUDENTS TO START A GENUINE CLINICAL PROGRAM THAT WOULD PROVIDE PARTICIPANTS WITH EXPERIENCE IN REPRESENTING SMALL PROPERTY OWNERS BEFORE THE CAMBRIDGE RENT CONTROL BOARD WE FELT THAT TAP AT THE TIME KNOWN AS SPIL STUDENTS FOR PUBLIC INTEREST LAW PROVIDED ONLY A SIMPLISTIC ONESIDED INDOCTRINATION OF ANTILANDLORD PROPERTY LAW CONCEPTS TO STUDENTS WITH MUCH OF THE ACTUAL ADVOCACY BEING HANDLED BY PROFESSIONAL PAID ADVISERS THESE ADVISERS HAD CLOSE TIES TO POLITICALLY ACTIVE ORGANIZATIONS IN CAMBRIDGE SUCH AS THE CAMBRIDGE TENANTS UNION THAT OFFER SIMILAR TENANT ADVOCACY SERVICES AND OPPOSE ANY LEGISLATIVE PROPOSALS TO BRING FAIRNESS TO THE CITY'S RENT CONTROL LAWS WITH THE SUPPORT OF THE CAMBRIDGE SMALL PROPERTY OWNERS' ASSOCIATION WE APPROACHED THE LAW SCHOOL ADMINISTRATION WITH A PROPOSAL FOR A LANDLORDORIENTED GROUP ARGUING THAT WHILE TENANTS HAD NO FEWER THAN THREE ORGANIZATIONS IN ADDITION TO SPIL THAT COULD PROVIDE THEM WITH FREE LEGAL ASSISTANCE LANDLORDS HAD NONE WE WERE MET WITH DISDAIN AND A LACK OF COMPREHENSION AS TO HOW THE REPRESENTATION OF PROPERTY OWNERS VIRTUALLY A FOURLETTER WORD IN CAMBRIDGE COULD POSSIBLY BE IN THE PUBLIC INTEREST A BASIC REQUIREMENT FOR ANY NEW CLINICAL PROGRAM AT THE SCHOOL ONE WOULD HAVE THOUGHT HARVARD WOULD JUMP AT THE CHANCE TO PROVIDE ITS STUDENTS WITH THE EXPERIENCE OF REPRESENTING A FINANCIALLY STRAPPED UNREPRESENTED MINORITY UNFORTUNATELY THE ATTITUDES OF MANY OF THE FACULTY AND ADMINISTRATION AT THE LAW SCHOOL TEND TOWARD RATHER SKEWED VIEWS OF PROPERTY RIGHTS THAT WOULD FIND AS WELCOME A HOME IN HAVANA AS THEY DO IN CAMBRIDGE THE BIGGEST LOSERS HERE ARE THE STUDENTS WHO ARE GIVEN THE OPPORTUNITY TO SEE ONLY ONE SIDE OF THE COMPLEX STRUGGLE OVER CAMBRIDGE'S RENT CONTROL REGULATIONS LAST YEAR A NUMBER OF MY FELLOW STUDENTS AND I ORGANIZED A PROGRAM TO COUNTERACT TAP'S PERNICIOUS INFLUENCE WITH THE AID OF A LOCAL EMPOWERMENT GROUP JUST A START WE FORMED THE SMALL OWNERS' ASSISTANCE PROGRAM SOAP WHICH REPRESENTS LANDLORDS BEFORE THE CAMBRIDGE RENT CONTROL BOARD COUNSELS THEM ON HOW TO PROTECT THEMSELVES FROM FUTURE LEGAL ACTION BY TENANTS FACILITATES MEDIATION BETWEEN LANDLORDS AND TENANTS OVER DE MINIMIS PROBLEMS AND ASSISTS THE SMALL OWNERS' PROPERTY ASSOCIATION OF CAMBRIDGE WITH LEGAL RESEARCH SOAP IS TRULY A STUDENTRUN VOLUNTEER PROGRAM THAT IS COMMITTED TO LEVELING THE PLAYING FIELD FOR POOR LANDLORDS IN CAMBRIDGE WE USE THE SAME INCOME GUIDELINES EMPLOYED BY TAP OUR MEMBERSHIP INCLUDES DISENCHANTED TAP MEMBERS IDEOLOGICAL FOES OF RENT CONTROL AND THOSE WHO SIMPLY SEEK REAL HANDS ON ADVOCACY EXPERIENCE NEEDLESS TO SAY SOAP HAS NOT BEEN ACCEPTED AS PART OF HARVARD LAW SCHOOL'S CLINICAL PROGRAM BUT HARVARD WAS INTIMATELY INVOLVED IN OUR BIRTH AS CAMBRIDGE'S LARGEST LANDLORD HARVARD UNIVERSITY HAS BEEN ASSAILED BY SMALL PROPERTY OWNERS OUTRAGED THAT IT NEVER PROMOTES THEIR INTERESTS THUS WHEN WORD OF OUR INCIPIENT GROUP LEAKED OUT HARVARD'S COMMUNITY RELATIONS OFFICE PUSHED FOR THE LAW SCHOOL OFFICIALLY TO RECOGNIZE SOAP NEVER LET IT BE SAID THAT HARVARD IS TOO LIBERAL TO RECOGNIZE AND SERVE ITS OWN BEST INTERESTS 9308130088 930813 PROGRAM TRADING NEW YORK PROGRAM TRADING FOR THE WEEK ENDED AUG 6 ACCOUNTED FOR 84 OR AN AVERAGE 201 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 84 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 245 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 374 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 505 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR CUSTOMER WHILE 419 WAS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL 76 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS COOPER NEFF AND SALOMON BROTHERS EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY NOMURA SECURITIES AND JP MORGAN DID MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS 9308130086 930813 LETTERS TO THE EDITOR WELCOMING HOSTILITIES I WAS A MEMBER OF THE FIRST CLASS OF WOMEN ADMITTED TO HARVARD LAW SCHOOL THE CLASS OF 1953 AND I WAS SADDENED BUT NOT SURPRISED TO LEARN IN YOUR JULY 20 ARTICLE THAT RUTH BADER GINSBURG'S CLASS OF 1959 ENDURED THE SAME ORDEAL WOMEN ENDURED SIX YEARS EARLIER ATTITUDES CHANGE SLOWLY I BELIEVE THAT THE ATMOSPHERE OF HOSTILITY TOWARD WOMEN WAS ESTABLISHED BY DEAN GRISWOLD HIMSELF IN HIS WELCOME TO MY ENTIRE CLASS IN SEPTEMBER 1950 I CAN HEAR AS CLEARLY TODAY AS I DID THEN HIS CONCLUDING REMARK AS TO THE WOMEN AMONG YOU I DID NOT APPROVE OF YOUR ADMISSION BELIEVING THAT YOU WERE EACH TAKING THE PLACE OF A GOOD MAN BUT NOW THAT YOU ARE HERE WELCOME THIS WAS NO TEATIME EGGING THEM ON AS YOUR ARTICLE REPORTED 9308130084 930813 THURSDAY'S MARKETS RALLY IN BONDS FADES A BIT STOCKS SLUMP BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL A POWERFUL BOND MARKET RALLY SPARKED BY POSITIVE INFLATION NEWS FADED IN THE AFTERNOON STOCK PRICES SLUMPED AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE SANK 1426 POINTS TO 356909 STANDARD & POOR'S 500STOCK INDEX DECLINED 150 TO 44896 AND THE NASDAQ COMPOSITE INDEX SLID 165 TO 71712 THE FAVORABLE INFLATION NEWS ALSO HAMMERED GOLD A TRADITIONAL HEDGE AGAINST INFLATION THE LABOR DEPARTMENT'S REPORT THAT PRODUCER PRICES FELL 02 IN JULY RATHER THAN ROSE AN EXPECTED 01 SENT GOLD FUTURES FOR DECEMBER DELIVERY TUMBLING 8 AN OUNCE TO 37070 AFTER SURGING IN EARLY TRADING ON THE GOOD INFLATION NEWS LONGTERM BOND PRICES REVERSED COURSE BECAUSE OF SOFT DEMAND FOR THE TREASURY'S SALE OF 11 BILLION OF 30YEAR BONDS ANALYSTS SAID THE BOND MARKET'S RALLY IN RECENT DAYS HAD LAID THE GROUNDWORK FOR A PULLBACK IN PRICES DESPITE THE UPBEAT INFLATION NEWS THE BOND MARKET HAS HAD A REAL GOOD RUN SAID DONALD MAUDE CHIEF US FIXEDINCOME STRATEGIST AT SCOTIA MCLEOD USA IT'S NEITHER SURPRISING NOR DISAPPOINTING TO SEE A CONSOLIDATION PHASE STOCKS ALSO WERE RIPE FOR A BOUT OF PROFITTAKING AFTER RECENT ADVANCES AFTER A QUICK SURGE AT THE OPENING PRICES WEAKENED THROUGH THE REST OF THE DAY TUMBLING AS MANY AS 30 POINTS IN AFTERNOON TRADING BEFORE REGAINING SOME LOST GROUND INITIALLY THERE WAS JUST SOME PROFITTAKING BUT WHEN BONDS TURNED DOWN IT GOT A LITTLE MORE UGLY SAID JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ BUT HE ADDED THIS TYPE OF DOWNDRAFT ISN'T LIKELY TO CONSTITUTE A MAJOR REVERSAL WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 034 TO 11073 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2785 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1075 ISSUES FELL AND 849 ROSE THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17159 MARKS AND 10295 YEN COMPARED WITH 17220 MARKS AND 10364 YEN WEDNESDAY 9308130083 930813 TECHNOLOGY BRITISH FIRM GETS APPROVAL TO MARKET A STRONGER CONDOM LONDON INTERNATIONAL HOPES THIN POLYURETHANE PRODUCT WILL HELP INCREASE USAGE BY JENNIFER CODY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A BRITISH COMPANY SAID IT RECEIVED FOOD AND DRUG ADMINISTRATION CLEARANCE TO MARKET A POLYURETHANE CONDOM IT CLAIMS COULD INCREASE CONDOM USAGE WORLDWIDE MADE FROM A NEW MATERIAL CALLED DURON WHICH IS SAID TO BE TWICE AS STRONG AS LATEX THE CONDOMS ARE ALSO HALF AS THICK AS TRADITIONAL CONDOMS OFFICIALS OF LONDON INTERNATIONAL GROUP PLC SAID THE CONDOMS ARE HYPOALLERGENIC AND COMPATIBLE WITH OILBASED LUBRICANTS SUCH AS PETROLEUM JELLY WHICH WEAKEN LATEX PRODUCED IN THE UK THE DURON CONDOMS WILL BE MARKETED IN THE US AND OTHER COUNTRIES NEXT YEAR DUE TO THE HIGH COST OF PRODUCTION THEY WILL BE SIGNIFICANTLY MORE EXPENSIVE THAN HIGHQUALITY LATEX CONDOMS THE COMPANY SAID LONDON INTERNATIONAL WHICH MANUFACTURES RAMSES SHEIK AND OTHER WELLKNOWN CONDOM BRAND NAMES HAD ABOUT 624 MILLION IN SALES LAST YEAR IN NATIONAL OVERTHECOUNTER TRADING THE COMPANY'S AMERICAN DEPOSITARY RECEIPTS ROSE 1125 TO 1550 ALAN E WOLTZ CHAIRMAN OF THE LONDONBASED CONSUMER PRODUCTS COMPANY SAID THE STRENGTH AND FEEL OF THE NEW MATERIAL COULD ATTRACT CUSTOMERS WHO DESPITE THE AIDS EPIDEMIC HAVE BEEN RELUCTANT TO USE LATEX CONDOMS DURON WILL GIVE US THE OPPORTUNITY TO EXPAND THE MARKET SAID MR WOLTZ AT A NEWS CONFERENCE THIS MATERIAL UNCOVERS SOME OF THE MAJOR OBJECTIONS CONSUMERS HAVE TO THE USE OF CONDOMS HEALTHINDUSTRY ANALYSTS REACTED MORE CAUTIOUSLY MARCIA LAWRENCE DIRECTOR OF COMMUNICATIONS FOR PLANNED PARENTHOOD OF NEW YORK CITY SAID THE CONDOM SOUNDED PROMISING BUT SHE COULDN'T SPECULATE ON HOW SUCCESSFUL IT WILL BE THERE IS ALWAYS A MARGINAL GROUP OF PEOPLE WHO SAY GEE I SHOULD DO SOMETHING BUT I HATE WHAT I HAVE TO DO' THE FORCES FOR AND AGAINST CONDOMS ARE EQUAL AND THE RESULT IS PARALYSIS IF SOMETHING COMES ALONG WITH A MARGINAL BENEFIT IT COULD SHIFT THE BALANCE HEMANT K SHAH AN INDEPENDENT HEALTHCARE ANALYST IN WARREN NJ DOUBTED THE DURON CONDOM WOULD EXPAND THE CONDOM MARKET BUT SPECULATED IT WOULD TAKE MARKET SHARE FROM OTHER PRODUCERS ESPECIALLY CARTERWALLACE INC A LEADING COMPETITOR THE MARKET TREND HAS BEEN VERY CLEAR IN THE LAST SEVEN TO EIGHT YEARS SAID MR SHAH THE AIDS SCARE WAS BAD BUT THE MARKET HASN'T BEEN EXPANDING MUCH IF AIDS COULDN'T DO IT I'M NOT SURE IF THIS PRODUCT IS GOING TO 9308130082 930813 WHO'S NEWS HOUSE STAFF MEMBER GETS POSITION AT BOARD THAT OVERSEES RTC WASHINGTON DIETRA FORD A HOUSE STAFF MEMBER WAS NAMED EXECUTIVE DIRECTOR OF THE THRIFT DEPOSITOR PROTECTION OVERSIGHT BOARD SHE WILL BE THE STAFF CHIEF FOR THE BOARD WHICH OVERSEES THE RESOLUTION TRUST CORP THE GOVERNMENT'S SAVINGSANDLOAN CLEANUP AGENCY SHE SUCCEEDS PETER MONROE WHO RESIGNED AS PRESIDENT OF THE BOARD JUNE 12 THE TREASURY DEPARTMENT CHANGED THE TITLE OF THE AGENCY'S STAFF HEAD TO EXECUTIVE DIRECTOR MS FORD WAS SENIOR LEGISLATIVE ASSOCIATE FOR THE HOUSE DISTRICT OF COLUMBIA COMMITTEE THE OVERSIGHT BOARD IS HEADED BY THE TREASURY SECRETARY AND ITS MEMBERS INCLUDE THE FEDERAL RESERVE BOARD CHAIRMAN THE HEADS OF THREE OTHER FINANCIAL REGULATORY AGENCIES AND TWO PRIVATEINDUSTRY OFFICIALS 9308130080 930813 WHO'S NEWS TIME WARNER INC TIME WARNER INC NEW YORK RAYMOND M NOWAK WAS NAMED TO THE NEW POST OF VICE PRESIDENT CONTROLLER AT WARNER MUSIC GROUP THE MUSIC DIVISION OF THIS MEDIA AND ENTERTAINMENT COMPANY MR NOWAK 41 FORMERLY WAS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE MADISON SQUARE GARDEN UNIT OF PARAMOUNT COMMUNICATIONS INC 9308130079 930813 LETTERS TO THE EDITOR POST OFFICE STILL HAS A FIRSTCLASS MONOPOLY IN HER ANTIPRIVATIZATION LETTER OF JULY 21 REACTING TO YOUR JUNE 29 EDITORIAL STOP THE KILLING US POSTAL SERVICE CORPORATE RELATIONS VICE PRESIDENT DEBORAH K BOWKER INCORRECTLY STATES THAT MARKETPLACE PRESSURES AND THE ONGOING COMPETITION WE FACE IN EVERY CLASS OF MAIL WILL DICTATE THE ULTIMATE FATE OF THE SERVICE IN FACT THE DELIVERY OF FIRSTCLASS MAIL BY ANYONE OTHER THAN THE POSTAL SERVICE HAS BEEN ILLEGAL FOR MORE THAN 100 YEARS THIS GOVERNMENT MONOPOLY WAS BEGUN PRECISELY BECAUSE THE POST OFFICE COULD NOT FACE ONGOING COMPETITION OR MARKETPLACE PRESSURES PRIVATE LETTER CARRIERS IN THE 1800S HAD DRIVEN RATES DOWN TO ONEEIGHTH THE GOVERNMENT RATE WHILE PROVIDING BETTER SERVICE THE POST OFFICE WAS GOING OUT OF BUSINESS MS BOWKER IS RIGHT WHEN SHE SAYS POSTAL PRIVATIZATION IS A CONCEPT WHOSE DAYS HAVE PASSED BUT ONLY BECAUSE THAT CONCEPT WAS MADE ILLEGAL IN 1883 I CHALLENGE HER TO A FREE MARKET ALLOW OPEN COMPETITION IN FIRSTCLASS MAIL DELIVERY 9308130077 930812 EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9308130076 930813 NEW STUDY CITES MARKETING BIAS IN MORTGAGES GROUP SAYS MANY LENDERS DON'T SEEK APPLICANTS IN BLACK HISPANIC AREAS BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A CONSUMER GROUP SAID ITS ANALYSIS OF MORTGAGELENDING DATA SHOWS DISCRIMINATORY MARKETING PRACTICES BY 49 LARGE LENDERS IN 16 BIG CITIES THE GROUP ESSENTIAL INFORMATION WHICH WAS FOUNDED BY CONSUMER ADVOCATE RALPH NADER SAID THE MORTGAGE LENDERS USE LITTLE OR NO MARKETING IN LARGELY BLACK OR HISPANIC NEIGHBORHOODS WHICH EFFECTIVELY EXCLUDES MINORITIES FROM EVEN APPLYING FOR LOANS JONATHAN BROWN AUTHOR OF THE REPORT CRITICIZED FEDERAL REGULATORS FOR FAILING TO CRACK DOWN ON SUCH PRACTICES WHICH HE DEEMED MORE IMPORTANT THAN ACTUAL LOANAPPLICATION APPROVAL AND REJECTION RATES THE WORST OFFENDERS ARE THE ONES THAT HAVE NO APPLICATIONS HE SAID BECAUSE THEY EITHER DIDN'T TRY TO DRUM UP BUSINESS OR ELSE THEY DISCOURAGED APPLICATIONS FROM MINORITIES ESSENTIAL INFORMATION ANALYZED 13 MILLION APPLICATIONS NATIONWIDE THIS IS THE FIRST ANALYSIS OF GOVERNMENT DATA ON MORTGAGE LENDING THAT DELVES INTO THE ISSUE OF LENDER DISCRIMINATION THROUGH MARKETING PRACTICES PREVIOUS STUDIES FOCUSED ON REJECTION RATES FOR APPLICATIONS RECEIVED TWO ARTICLES BY THE WALL STREET JOURNAL LAST YEAR INVOLVING COMPUTER ANALYSIS OF THE FEDERAL RESERVE BOARD DATA FOR 1990 AND 1991 REPORTED PRIMARILY ON THE HIGHER REJECTION RATES FOR MINORITY LOAN APPLICANTS THAN FOR WHITE APPLICANTS THE CONSUMER GROUP'S ANALYSIS TOOK A NEW TACK OF DEPICTING BREAKDOWNS OF SPECIFIC LENDERS' LOANAPPLICATION MARKET SHARES IN MINORITY AND WHITE NEIGHBORHOODS WITHIN THE LENDERS' OWN MARKET AREAS THE GROUP'S REPORT USED MAPS TO SHOW THAT MANY LENDERS HAD LOW MARKET SHARES FOR APPLICATIONS IN MINORITY NEIGHBORHOODS WITHIN THEIR MARKETING AREAS WHILE IN WHITE NEIGHBORHOODS THAT RINGED THE BLACK OR HISPANIC AREAS THEIR MARKET SHARES WERE MUCH HIGHER THE CONSUMER GROUP ASKED THE JUSTICE DEPARTMENT TO REVIEW THE MARKETING PRACTICES AND IT URGED THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TO INVESTIGATE WHAT THE GROUP CONSIDERS THE 62 WORSTCASE SITUATIONS INVOLVING 49 BIG LENDERS SINGLED OUT BY THE CONSUMER GROUP AS THE WORST OFFENDERS WERE SEARS ROEBUCK & CO'S SEARS MORTGAGE CORP WITH SUCH PATTERNS IN SIX BIG CITIES AND PRUDENTIAL HOME MORTGAGE CORP WITH SIMILAR PATTERNS IN THREE MAJOR CITIES IN RESPONSE A SPOKESMAN FOR SEARS MORTGAGE SAID WE'RE CONFIDENT WE'RE IN FULL COMPLIANCE WITH THE CURRENT INTERPRETATION OF THE FAIR LENDING LAWS SEARS RECENTLY AGREED TO SELL ITS MORTGAGE UNIT TO PNC BANK CORP OF PITTSBURGH A SPOKESMAN FOR PRUDENTIAL HOME MORTGAGE A UNIT OF PRUDENTIAL INSURENCE CO OF AMERICA SAID WE DON'T DISCRIMINATE OR ENGAGE IN REDLINING THE SPOKESMAN ADDED THAT PRUDENTIAL STARTED A PROGRAM IN FEBRUARY AIMED AT MARKETING MORTGAGES TO MINORITIES MR BROWN SAID LENDERS WHO ENCOURAGE MINORITY APPLICATIONS REJECT MANY OF THOSE FROM MARGINALLY QUALIFIED BIDDERS HE SAID WHILE LENDERS WHO DISCOURAGE SUCH APPLICATIONS OFTEN SEE ONLY SUPERQUALIFIED MINORITY APPLICANTS ACCORDING TO MR BROWN MANY OF THE WORST CASE LENDING PATTERNS ARE MORE SEVERE THAN THE PATTERN SHOWN BY DECATUR FEDERAL SAVINGS & LOAN OF ATLANTA WHICH WAS SUED BY THE JUSTICE DEPARTMENT LAST SEPTEMBER FOR VIOLATION OF FAIR LENDING LAWS THE DEPARTMENT CHARGED THAT DECATUR EXCLUDED BLACK NEIGHBORHOODS FROM ITS EFFECTIVE LENDING TERRITORY DECATUR AGREED TO PAY 1 MILLION IN DAMAGES AND BEGIN AN AFFIRMATIVE MARKETING PROGRAM IN ATLANTA'S MINORITY NEIGHBORHOODS MR BROWN NOTED THAT DECATUR DIDN'T HAVE A HIGH REJECTION RATE FOR ACTUAL MINORITY APPLICATIONS SIMILARLY SEARS MORTGAGE HAD ONLY 08 OF THE MARKET SHARE OF MINORITY APPLICANTS IN PITTSBURGH IN 1991 COMPARED WITH A 77 SHARE IN WHITE AREAS BUT THE LENDER APPROVED ALL OF ITS MINORITY APPLICATIONS IN PITTSBURGH AND ONLY 60 OF THE WHITE APPLICATIONS THE ESSENTIAL INFORMATION REPORT SHOWED 9308130075 930813 CREDIT MARKETS PRICE OF TREASURY'S LONG BOND SHOWS FIRST DROP IN A WEEK AFTER LACKLUSTER 30YEAR AUCTION BY THOMAS T VOGEL JR AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK FOR THE FIRST TIME IN A WEEK THE PRICE OF THE 30YEAR BOND FELL AS OTHER TREASURY SECURITIES ENDED NARROWLY MIXED IN THE WAKE OF A LACKLUSTER AUCTION OF 30YEAR BONDS AFTER DIGESTING MORE THAN 38 BILLION OF NEW NOTES AND BONDS DURING THE GOVERNMENT'S QUARTERLY REFUNDING THE TREASURY MARKET SEEMED TO LOSE STEAM YESTERDAY EVEN AS THE GOVERNMENT GARNERED THE LOWEST AVERAGE YIELD IN 16 YEARS AT AN AUCTION OF 30YEAR BONDS TRADERS WERE BEGINNING TO WORRY THAT PERHAPS THE MARKET HAS GONE TOO FAR TOO FAST THIS WEEK THERE WERE HIGH HOPES AMONG INVESTORS YESTERDAY THAT THE AUCTION WOULD MEET WITH EVEN STRONGER DEMAND THAN IT DID BEFORE THE AUCTION FOR EXAMPLE THE PRICE OF THE 30YEAR BOND ROSE NEARLY 3/4 POINT OR NEARLY 750 FOR A BOND WITH A 1000 FACE VALUE BUT SOON AFTER THE AUCTION RESULTS WERE ANNOUNCED THE PRICE PLUNGED FROM THE INTRADAY HIGH TO FINISH AT A MODEST LOSS FOR THE DAY THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND FELL 1/8 POINT OR 125 FOR A BOND WITH A 1000 FACE VALUE TO 109 2/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE ROSE TO 643 FROM 642 ON WEDNESDAY THE TREASURY SOLD ITS 11 BILLION OFFERING OF 30YEAR BONDS AT AN AVERAGE YIELD OF 633 THE LOWEST YIELD AT A 30YEAR BOND AUCTION SINCE THE TREASURY BEGAN REGULAR AUCTIONS IN 1977 HOWEVER OTHER MEASURES OF DEMAND SHOWED SOFT BIDDING THE BIDTOCOVER RATIO WHICH COMPARES THE NUMBER OF BIDS TENDERED TO THOSE RECEIVED WAS JUST BELOW AVERAGE AT 213TO1 NONCOMPETITIVE BIDS WHICH TYPICALLY REFLECT BIDDING FROM OUTSIDE THE WALL STREET DEALER COMMUNITY WERE AVERAGE AT 390 MILLION WITH TRADERS AND INVESTORS UNIMPRESSED BY THE AUCTION PRICES BEGAN TO HEAD LOWER IMMEDIATELY AFTER THE RESULTS WERE ANNOUNCED AS SOME SPECULATIVE PLAYERS BEGAN TO REVERSE BETS THAT THE MARKET WAS GOING TO HEAD HIGHER I DON'T THINK THEY WERE PROFITTAKING THEY WERE LOSSTAKING SAID MEAD BRIGGS HEAD OF GOVERNMENT TRADING AT DEUTSCHE BANK GOVERNMENT SECURITIES INC BY LATE IN THE DAY THE SELLING HAD PUSHED UP THE YIELD ON THE WHENISSUED 30YEAR BOND TO 636 UP FROM 632 BEFORE THE RESULTS WERE ANNOUNCED WHILE YESTERDAY WAS THE LAST GOVERNMENT AUCTION OF 30YEAR BONDS UNTIL FEBRUARY DEMAND WAS FAR FROM STELLAR TRADERS SAID BUT THEY STRESSED THAT THE LACK OF INTEREST WAS NOT DUE TO ANY FUNDAMENTAL CHANGE IN SENTIMENT INSTEAD IT WAS MORE REFLECTIVE OF POSITIONING AMONG WALL STREET PROFESSIONALS ACCORDING TO A NUMBER OF TRADERS MANY WALL STREET FIRMS ARE HOLDING SIGNIFICANT POSITIONS IN THE 30YEAR BOND IN HOPES THAT INTEREST RATES WILL CONTINUE TO DROP BUT EVEN AS THE TREASURY GARNERED THE LOWEST YIELDS IN YEARS FOR A 30YEAR BOND ISSUE AND THE GOVERNMENT REPORTED A DROP IN INFLATION FOR JULY YIELDS ROSE SLIGHTLY BY DAY'S END THE LABOR DEPARTMENT REPORTED THAT THE PRODUCER PRICE INDEX A MEASURE OF WHOLESALE PRICES FELL A SEASONALLY ADJUSTED 02 IN JULY BOND INVESTORS GENERALLY WELCOME NEWS OF LOWER INFLATION SINCE INFLATION REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN BUT THE BOND MARKET SEEMED READY TO TAKE A BREATHER YESTERDAY AFTER A WEEK OF AGGRESSIVE TRADING DESPITE THE GOOD NEWS ABOUT INFLATION ACCORDING TO JOHN COSTAS HEAD OF GOVERNMENT TRADING AT FIRST BOSTON CORP THE 30YEAR BOND AUCTION YESTERDAY WAS UNUSUAL BECAUSE IT CAME WITH NO SOCALLED CONCESSIONS CONCESSIONS ARE PRACTICES THAT INCLUDE ONE IN WHICH WALL STREET FIRMS WILL SELL OFF THEIR HOLDINGS OF TREASURY SECURITIES IN ADVANCE OF THE QUARTERLY REFUNDING IN ORDER TO MAKE ROOM FOR THE NEW SECURITIES AND IN ORDER TO DEPRESS PRICES AND PROVIDE A BIT OF A BOUNCE TO THE AUCTION BUT THE TREASURY MARKET RALLIED RIGHT INTO THE AUCTION THIS MEANS THAT MANY WALL STREET DEALERS ARE PROBABLY STILL HOLDING SUBSTANTIAL AMOUNTS OF THE OLD 30YEAR BOND ISSUE AS WELL AS THE ONE SOLD YESTERDAY THE COMBINATION OF THE EUPHORIA COMING OUT OF THE PASSAGE OF THE CLINTON BUDGET PACKAGE AND A CONTINUED POSITIVE OUTLOOK FOR THE ECONOMIC FUNDAMENTALS CAUSED PEOPLE TO GRAB BONDS ON THE FLY SAID MR COSTAS MANY IN THE TREASURY MARKET BELIEVE THAT THE CLINTON PACKAGE WITH ITS HIGHER TAXES COULD ACT AS A DRAG ON THE ECONOMY THUS FURTHER REDUCING INFLATIONARY PRESSURES IF THE PLAN RESULTS IN SIGNIFICANT BUDGET CUTS ALL THE BETTER SINCE THE RESULTING REDUCTION IN TREASURY SECURITIES COULD INCREASE THE VALUE OF THOSE OUTSTANDING BUT THE MARKET WILL NEED TO TIME TO DIGEST ALL OF THE SUPPLY AND THAT COULD MEAN A SMALL JUMP IN RATES IN THE COMING TRADING SESSIONS SAYS MR COSTAS THOUGH HE REMAINS OPTIMISTIC THAT LONGTERM RATES COULD AFTERWARDS DROP BELOW CURRENT LEVELS SOME TRADERS ARGUED YESTERDAY THAT THE MARKET COULD BE HEADED FOR A SIGNIFICANT SELLOFF IN THE COMING SESSIONS BECAUSE OF THE LARGE HOLDINGS WALL STREET FIRMS HAVE OF 30YEAR BONDS THIS IS BECAUSE MANY FIRMS AND SPECULATIVE TRADERS ARE HOLDING THE BONDS NOT BECAUSE THEY BELIEVE LONGTERM RATES WILL DROP SHARPLY BUT BECAUSE THEY ARE MAKING ARBITRAGE PLAYS THE MOST POPULAR ONE OF LATE HAS BEEN A BET ON A NARROWING OF THE YIELD GAP BETWEEN 30YEAR BONDS AND SHORTERTERM SECURITIES LIKE 10YEAR NOTES AND FIVEYEAR NOTES AS LONG AS THE YIELD GAP NARROWS THIS ARBITRAGE PLAY WILL BE PROFITABLE THERE WAS A LOT MORE ARBITRAGE BIDDING THROUGHOUT THE WEEK THAN NORMAL SAID MR COSTAS OF FIRST BOSTON IF ANYTHING PEOPLE HAVE A MUCH STRONGER CONVICTION ABOUT THE SIZE OF THE YIELD GAP THAN THE DIRECTION OF INTEREST RATES HE SAID TRADES DESIGNED TO TAKE ADVANTAGE OF THE YIELD GAP WERE THE DOMINANT PART OF CONVERSATIONS WITH OUR CLIENTS THROUGHOUT THE WEEK HE SAID THE CONSUMER PRICE INDEX ANOTHER IMPORTANT MEASURE OF INFLATION IS SLATED TO BE RELEASED TODAY LARGE HOLDERS OF TREASURYS MAY TAKE ADVANTAGE OF A GOOD REPORT OR ONE SHOWING LOW INFLATION TO TAKE THEIR PROFITS AND SELL OFF THEIR BONDS FOR THE SECOND CONSECUTIVE DAY RJR NABISCO SECURITIES WERE THE TALK OF THE BOND MARKET YESTERDAY RJR NABISCO INC A UNIT OF RJR NABISCO HOLDINGS CORP ISSUED 1 BILLION OF DEBT IN TWO PARTS ON WEDNESDAY RJR NABISCO HOLDINGS SOLD 125 BILLION OF PREFERRED STOCK JUST 485 MILLION OF CORPORATE DEBT WAS OFFERED ASIDE FROM RJR'S JUMBO DEAL OTHER ISSUERS INCLUDED MEAD CORP WHICH SOLD 32YEAR BONDS TRADING IN INVESTMENTGRADE BONDS WAS LIGHT TRADERS SAID PRICES MOSTLY FOLLOWED ALONG WITH THOSE OF TREASURYS WHICH ENDED MIXED AN EXCEPTION WAS THE YIELD SPREADS FOR BAARATED COMPANIES IN RELATION TO US TREASURYS WHICH WIDENED BY ABOUT 005 PERCENTAGE POINT THAT WAS BECAUSE OF THE NEW SUPPLY AFTER THE LATEST RJR NABISCO ISSUE WAS SOLD YESTERDAY RJR NABISCO INC IS RATED BAA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP IN THE JUNK BOND MARKET ACTIVITY WAS MODERATE AND PRICES ENDED MOSTLY UNCHANGED TRADERS SAID RJR NABISCO INC DECIDED LATE WEDNESDAY AFTER TREASURYS RALLIED TO OFFER DEBT YESTERDAY ACCORDING TO JEFF SERKES VICE PRESIDENT AND ASSISTANT TREASURER THE COMPANY WASN'T CONCERNED ABOUT THE CLOSE TIMING OF THE TWO DEALS BECAUSE THE PREFERRED SOLD WEDNESDAY BY RJR NABISCO HOLDINGS WAS MARKETED PRIMARILY TO RETAIL INVESTORS OR MOSTLY NONINSTITUTIONAL BUYERS IN CONTRAST YESTERDAY'S DEBT OFFERING WAS SOLD TO BIG INSTITUTIONS HE SAID THE FIRST PORTION OF THE OFFERING 500 MILLION OF 12YEAR NOTES WAS PRICED AT 99705 TO YIELD 879 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 305 PERCENTAGE POINTS ABOVE TREASURYS THE SECOND PORTION 500 MILLION OF 20YEAR DEBENTURES WAS PRICED AT 99907 TO YIELD 926 THE DEBENTURES WERE PRICED AT A SPREAD OF 290 PERCENTAGE POINTS ABOVE WHENISSUED 30YEAR TREASURYS SOURCES SAID IT WAS NOTEWORTHY THAT WEDNESDAY'S PERPETUAL PREFERRED STOCK WAS PRICED WITH A DIVIDEND YIELD 001 PERCENTAGE POINT LOWER THAN THE YIELD ON THE 20YEAR DEBT SOLD YESTERDAY SINCE PERPETUAL PREFERRED IS RANKED BELOW DEBT AND HAS NO FINAL MATURITY ITS YIELD WOULD TYPICALLY BE HIGHER THAN THAT OF 30YEAR DEBT TO COMPENSATE INVESTORS FOR ADDITIONAL RISK THE NOTES ARE DATED AUG 16 1993 AND MATURE AUG 15 2003 PRICES OF MUNICIPAL BONDS ENDED MIXED AMONG ACTIVELY TRADED MUNICIPAL BONDS PHILADELPHIA'S 575 WATER AND WASTEWATER REVENUE BONDS OF 2013 CLOSED 1/4 POINT LOWER AT 99 1/4 TO YIELD 579 DESPITE YESTERDAY'S WEAK PERFORMANCE THERE WAS A BIT OF IMPRESSIVE NEWS ABOUT THE MUNICIPAL MARKET THE BOND BUYER TRADE PAPER SAID THAT DURING THE WEEK ITS 20BOND GENERAL OBLIGATION BOND INDEX FELL 016 PERCENTAGE POINT TO 545 THE HIGHERGRADE 11BOND INDEX FELL 017 PERCENTAGE POINT TO 536 AND THE 30YEAR REVENUE BOND INDEX DROPPED 015 PERCENTAGE POINT TO 568 THOSE INDEXES ALL REACHED RECORD LOWS THIS WEEK THANKS TO THE SPURT OF HEAVY MUNI BUYING FOLLOWING THE PASSAGE OF PRESIDENT CLINTON'S BUDGET PACKAGE IT'S SEEN AS CERTAIN THAT THE HIGHER FEDERAL INCOME TAXES INCLUDED IN THE BUDGET WILL ENCOURAGE GREATER BUYING OF TAXEXEMPT SECURITIES SEPARATELY IN THE PRIMARY MARKET YESTERDAY ILLINOIS'S 900 MILLION OF GENERAL OBLIGATION CERTIFICATES SERIES AUGUST 1993 WERE WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE NET INTEREST COST AT 297 THE CERTIFICATES WHICH ARE DUE IN APRIL MAY AND JUNE OF 1994 HAVE YIELDS THAT RANGE FROM 280 TO 295 THEY HAVE BEEN RATED MIG1 BY MOODY'S AND SP1PLUS BY S&P PRICES OF MORTGAGEBACKED SECURITIES ENDED LOWER THE MORTGAGE MARKET COULD FACE ANOTHER HOMELOAN REFINANCING WAVE WHICH WOULD BE THE FOURTH SINCE 1991 YESTERDAY THE AVERAGE 30YEAR FIXEDRATE MORTGAGE RATE FELL TO A RECORD LOW OF 719 ACCORDING TO HSH ASSOCIATES INC A BUTLER NJ RESEARCH COMPANY THE RATE HAS REACHED NEW RECORD LOWS ALMOST EACH DAY HSH REPORTS ON AUG 6 THE AVERAGE 30YEAR RATE WAS 725 DOWN FROM 731 THE PREVIOUS WEEK THE SLIDING RATES CONTINUE TO MAKE MORTGAGE INVESTORS JITTERY ABOUT OWNING SECURITIES VULNERABLE TO PREPAYMENTS NAMELY FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORP 75 AND 8 ISSUES AND GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 9 ISSUES PREPAYMENTS HURT PREMIUMPRICED HIGHCOUPON MORTGAGE SECURITIES BECAUSE INVESTORS TYPICALLY PAY MUCH MORE THAN THE PAR PRICE THAT IS RETURNED WHEN THE SECURITIES ARE PREPAID BUT DEALERS HAVEN'T SEEN BUYERS SHY AWAY FROM THE MORTGAGE MARKET ALTOGETHER THAT'S LARGELY BECAUSE MANY INVESTORS ARE SITTING WITH CASH RECEIVED BACK FROM THE PREPAYMENTS OF MORTGAGES DURING THE LAST REFINANCING WAVE SAID JOHN TIERNEY A MORTGAGE ANALYST AT LEHMAN BROTHERS IN SECONDARY TRADING GINNIE MAE 65 ISSUES FOR SEPTEMBER DELIVERY ENDED UNCHANGED AFTER RALLYING AS MUCH AS 12/32 AT 99 23/32 FREDDIE MAC GOLD 65 ISSUES ENDED 5/32 LOWER AT 99 21/32 AND FANNIE MAE 65 ISSUES ENDED 6/32 LOWER AT 99 16/32 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 9308130074 930813 WHAT'S NEWS BUSINESS AND FINANCE THE CEO OF T2 MEDICAL QUIT AND THE INTRAVENOUSTHERAPY COMPANY SAID IT WOULD HAVE TO RESTATE SHARPLY DOWNWARD ITS FIRST AND SECONDQUARTER RESULTS TO REFLECT ACCOUNTING IRREGULARITIES AND ERRORS THE FIRM'S FINANCE CHIEF TOOK LEAVE THE US HEALTH DEPARTMENT CONFIRMED THAT T2 IS ONE OF SEVERAL TARGETS OF INVESTIGATIONS INTO POSSIBLE MEDICARE FRAUD INVOLVING POSSIBLE KICKBACKS TO DOCTORS T2'S STOCK PLUNGED 475 OR 35 TO 8875 DUPONT AGREED TO PAY 4250000 TO SETTLE THE FIRST SUIT TO REACH TRIAL ALLEGING THE CHEMICAL COMPANY'S BENLATE FUNGICIDE CAUSED PLANT DAMAGE THE SETTLEMENT IS A TINY FRACTION OF THE DAMAGES ALLEGED BY THE FOUR GROWERS WHO BROUGHT THE SUIT AGAINST DUPONT TALKS STALLED OVER SIDE DEALS TO THE NORTH AMERICAN FREE TRADE ACCORD SIGNALING TROUBLE FOR A PACT ALREADY FACING SERIOUS POLITICAL PROBLEMS PRODUCER PRICES FELL 02 IN JULY AND RETAIL SALES INCREASED 01 SUGGESTING THAT INFLATION ISN'T A PROBLEM AND THAT THE ECONOMY IS CONTINUING TO GROW AT A VERY MODERATE PACE THE INFLATION NEWS SPARKED A BOND RALLY BUT LONGTERM BOND PRICES ENDED LOWER BECAUSE OF SOFT DEMAND AT THE TREASURY'S LONG BOND SALE GOLD FUTURES PRICES FELL 8 AN OUNCE TURNER BROADCASTING IS COMPLETING SEPARATE PLANS TO BUY INDEPENDENT MOVIE PRODUCERS CASTLE ROCK ENTERTAINMENT AND NEW LINE CINEMA FOR AS MUCH AS A COMBINED 500 MILLION BRISTOLMYERS SQUIBB AGREED TO GIVE DISCOUNTS ON ITS DRUGS TO THE NATION'S LARGEST ALLIANCE OF NOTFORPROFIT HOSPITALS IN EXCHANGE FOR BEING A PREFERRED VENDOR TO THE ALLIANCE EXXON'S CHAIRMAN SAID WORLD OIL SUPPLIES ARE TIGHT AND PRICES SHOULD RISE THROUGH THE REST OF 1993 HE PREDICTED THE UN WON'T GIVE IRAQ PERMISSION SOON TO SELL OIL A MOVE THAT WOULD FLOOD THE MARKET AND DEPRESS PRICES DEMAND FOR MOTOR FUEL ISN'T AS ROBUST AS ENERGY TRADERS THINK DESPITE THIS WEEK'S BIG RALLY IN THE GASOLINE MARKET ACCORDING TO OIL INDUSTRY FIGURES TO BE RELEASED NEXT WEEK SMITH BARNEY SHEARSON PULLED OUT OF A PACT THAT GAVE ITS FOUR MILLION CLIENTS ACCESS TO STOCK ISSUES AND RESEARCH BY LEHMAN BROTHERS TEXTRON IS CONSIDERING SELLING ALL OR PART OF ITS FINANCE AND INSURANCE BUSINESSES ITS MOST PROFITABLE UNITS AND BUYING MORE MANUFACTURING ASSETS TOP COMPANY OFFICIALS SAID FEDERAL REGULATORS ARE CONSIDERING CHARGING ALYESKA PIPELINE WITH AIR POLLUTION VIOLATIONS DATING BACK TO THE LATE 1970S WHICH COULD EXPOSE THE CONSORTIUM TO SUBSTANTIAL FINES PREMIUM SALES' COURTAPPOINTED RECEIVER ALLEGED THAT TWO PREMIUM OFFICIALS BRIBED FOOD COMPANY EMPLOYEES TO CONFIRM PHONY TRANSACTIONS COMPAQ COMPUTER SHELVED SOME NEW PRINTER PRODUCTS AND IS SCRAMBLING TO REVAMP THE PRODUCT LINE SHARES OF ITALY'S FERRUZZI INITIALLY PLUMMETED 76 AS INVESTORS REACTED TO THE NEWS THAT FERRUZZI WAS WRITING DOWN ITS SHARE CAPITAL 85 BUT THE STOCK REBOUNDED ENDING DOWN 46 PRUDENTIAL INSURANCE RECEIVED AN OFFER FOR ITS REINSURANCE UNIT FROM AN INVESTMENT GROUP LED BY INVESTOR ROBERT BASS AND CHASE MANHATTAN BANK THE OFFER IS APPARENTLY ONE OF ONLY A FEW FOR THE UNIT WHICH PRUDENTIAL SAID IT WON'T SELL FOR LESS THAN 12 BILLION LONDON SHARES ROSE TO A RECORD THE FOURTH IN THE PAST FIVE SESSIONS ON PREDICTIONS OF EUROPEAN INTERESTRATE CUTS TO STIMULATE ECONOMIC GROWTH FRANKFURT STOCK PRICES JUMPED 12 TO A THREEYEAR HIGH AMID A RUSH TO LOCK IN POSITIONS BEFORE AN ANTICIPATED RALLY LANDS' END POSTED A PROFIT RISE OF 42 FOR THE LATEST QUARTER REFLECTING THE UPSCALE CATALOG CONCERN'S SELLING OF MORE MERCHANDISE AT FULL PRICE THE NEWS PUSHED THE COMPANY'S STOCK UP NEARLY 9 TO 32125 UP 2375 BONDS LEHMAN BROTHERS TREASURY INDEX 543449 OFF 707 COMMODITIES OIL 1818 A BARREL UP 30 CENTS DOW JONES FUTURES INDEX 12465 OFF 138 SPOT INDEX 12288 OFF 099 DOLLAR 10295 YEN OFF 069 17159 MARKS OFF 00061 9308130073 930813 WHO'S NEWS ALCO STANDARD CORP ALCO STANDARD CORP VALLEY FORGE PA JAMES E HEAD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE PAPERANDOFFICEPRODUCTS DISTRIBUTOR'S ALCO OFFICE PRODUCTS UNIT MR HEAD 48 YEARS OLD SUCCEEDS JOHN E STUART WHO BECAME THE PARENT COMPANY'S CEO AND PRESIDENT EARLIER THIS WEEK ALCO STANDARD ALSO NAMED KURT E DINKELACKER EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE PARENT MR DINKELACKER 40 WAS PREVIOUSLY EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT ALCO OFFICE PRODUCTS MR DINKELACKER SUCCEEDS LARRY SWITZER WHO RESIGNED IN FEBRUARY TO PURSUE OTHER INTERESTS 9308130072 930813 THE AMERICAS THE INNER WORKINGS OF NICARAGUA'S NEW POLITICAL MACHINE BY ARIEL SOLORZANO MANAGUA NOVEMBER 22 1991 MARKED THE 60TH ANNIVERSARY OF LABORATORIOS SOLKA A NICARAGUAN PHARMACEUTICAL BUSINESS FOUNDED BY MY FATHER THE GROUNDS WHERE SOLKA STANDS TODAY WOULD HAVE BEEN SUFFICIENT TO ACCOMMODATE OUR GUESTS BUT THE EVENT COULDN'T TAKE PLACE THERE BECAUSE IT WAS OCCUPIED BY UNIONS CONTROLLED BY THE SANDINISTA PARTY WE INVITED KEY GOVERNMENT OFFICIALS AND THE DIPLOMATIC CORPS TO THE CELEBRATION AT AN ALTERNATE LOCATION THENUS AMBASSADOR TO NICARAGUA HARRY SHLAUDEMAN ATTENDED THE CEREMONY SO DID THE RUSSIAN AMBASSADOR BUT NEITHER MRS CHAMORRO NOR ANY OFFICIALS IN HER GOVERNMENT CAME THEIR ABSENCE WAS A CLEAR SIGN THAT THE GOVERNMENT WAS NOT IMPARTIAL WHEN THE SANDINISTAS LOST THE 1990 ELECTION THERE SEEMED LITTLE DOUBT THAT THE CHAMORRO GOVERNMENT WOULD SET THE STAGE FOR A GREAT ECONOMIC REVIVAL INCLUDING THE REQUIRED LEGAL FRAMEWORK TO SECURE PROPERTY RIGHTS INSTEAD SECURE PROPERTY RIGHTS TODAY EXTEND ONLY TO THOSE BUSINESSES CONTROLLED BY THE PRESENT NOMENKLATURA A HYBRID OF CHAMORRO GOVERNMENT OFFICIALS AND THOSE SANDINISTAS WHO GRABBED PROPERTY BEFORE THEIR 1990 DEFEAT OR WHO CONTINUE TO PROFIT FROM LOANS SUPPLIED BY SANDINISTA LOAN OFFICERS IN STATE BANKS SECURITY FOR THE PROPERTY RIGHTS OF THIS EXCLUSIVE GROUP IS PROVIDED BY THE ARMY WHICH IS CONTROLLED BY HUMBERTO ORTEGA BROTHER OF EXPRESIDENT AND DEFEATED 1990 CANDIDATE DANIEL ORTEGA CONTRARY TO THE WISHES OF THE PEOPLE IN NICARAGUA AND THE UNO COALITION WHICH THREE YEARS EARLIER HAD COME TOGETHER TO PAVE THE WAY FOR MRS CHAMORRO'S VICTORY THIS NOMENKLATURA EXERTS ITS MUSCLE THROUGH A WELLOILED POLITICAL MACHINE RUN BY ANTONIO LACAYO MRS CHAMORRO'S CHIEF OF STAFF AND GEN ORTEGA THE MACHINE IS FUELED WITH THE HELP OF FOREIGN ASSISTANCE INCLUDING CLOSE TO 1 BILLION IN US AID IN THE PAST THREE YEARS THE MODUS OPERANDI OF THE MACHINE INCLUDES LIBERAL USE OF APPEALS COURTS AND JUDGES WHO OUT OF FEAR OR VESTED INTEREST MOSTLY SIDE WITH THE WISH LISTS OF MR LACAYO AND GEN ORTEGA THE OFFICE OF THE PRESENT ATTORNEY GENERAL OFFERS LITTLE PROTECTION FROM THE MACHINE AND ACCORDING TO THE FORMER ATTORNEY GENERAL DUILIO BALTODANO CONTAINS NO FILES OR RECORDS FROM ANY OF THE CASES PRESENTED BY LAWFUL OWNERS OF THE PROPERTIES CONFISCATED DURING THE SANDINISTA REGIME IN JUNE 1991 ANTONIO LACAYO ORDERED THESE TRANSFERRED TO HIS OFFICE FROM WHERE SELECTIVE AND ARBITRARY DECISIONS ARE MADE TO FAVOR HIS CRONIES OR THE POLITICALLY CONVENIENT IN SOME CASES INDIVIDUALS ARE ALLOWED TO HAVE BACK ONLY THOSE PROPERTIES WHOSE RETURN DOES NOT REPRESENT A CONFLICT WITH THE INTERESTS OF THE NOMENKLATURA IN OTHERS OWNERS WHO PREVIOUSLY HAD CONTROLLING INTERESTS OF THEIR BUSINESS CONCERNS ARE TOLD FLATOUT THEY NO LONGER HAVE THIS CONTROL AT THE SAME TIME THEY ARE GIVEN STRONG RECOMMENDATIONS TO ACCEPT A DEAL FAVORING THE UNIONS THAT SUPPORT THE SANDINISTAS WHICH IN TURN FAVOR THE INTERESTS OF THE LACAYOORTEGA POLITICAL MACHINE IN THE CASE OF SOLKA THE GOVERNMENT OFFERED US 40 OF THE COMPANY ON FEBRUARY 5 1993 SIMILAR OFFERS WERE MADE TO 27 OTHER INDUSTRIAL OWNERS THIS WOULD IN EFFECT SURRENDER VETO POWER OVER TO THE UNIONS DAYTON CALDERA A GOVERNMENT OFFICIAL WHO RUNS A USFINANCED OFFICE IN CHARGE OF THE DISTORTED PRIVATIZATION EFFORT CLAIMS THE BENEFITS FOR THE SANDINISTA UNIONS ARE NECESSARY IN THE INTEREST OF NATIONAL RECONCILIATION THE PERVERSE IRONY IS THAT THE UNIONS' RANK AND FILE DON'T GET TO SEE THE BENEFITS CLAIMED FOR THEM BECAUSE THE SOCALLED LABOR PRIVILEGES STAY AT THE TOP THE PARTY LOYALISTS WHO CONTROL THE UNION LOCALS ALSO CONTROL ITS MANAGING COMMITTEES IN OUR CASE THESE PARTY HACKS HAVE ESTABLISHED A RECORD OF LOOTING THE COMPANY'S ASSETS AS IN THE CASE OF A NUMBER OF AUTOS PURCHASED BY THE COMPANY YET REGISTERED UNDER THE NAMES OF THE INDIVIDUALS ASSIGNED THE AUTOS I ACQUIRED EVIDENCE OF THIS AND OTHER THEFTS FROM HONEST EMPLOYEES WHO WORKED ALONGSIDE US AT SOLKA UNTIL IT WAS TAKEN OVER BY THE SANDINISTAS IN DECEMBER 1979 THEIR MOTIVATION FOR SHARING THIS INFORMATION WITH US COMES FROM THEIR DESIRE TO FREE THEMSELVES FROM CORRUPT UNION LEADERS HOWEVER THOSE SOLKA EMPLOYEES WHO HAVE SIGNED NOTES OF PUBLIC SUPPORT FOR OUR CAUSE HAVE BEEN THREATENED AND/OR FIRED MEANWHILE THE COUNTRY AND ITS STOIC PEOPLE CONTINUE TO STRUGGLE FOR THE END OF PRESENT ABUSES OF POWER AND REPRESSION HUNDREDS OF PEOPLE FROM ALL POLITICAL WALKS OF LIFE INCLUDING DISGRUNTLED FORMER SANDINISTA IDEALISTS HAVE BEEN KILLED FOR MAKING CALLS FOR DEMOCRACY VICTIMS INCLUDE SMALL COUNTRY FARMERS WHO ATTEMPT TO PROTECT THEIR PLOTS OF LAND WHICH THEY NEED TO FEED THEIR FAMILIES THEY ALSO INCLUDE MY PREDECESSOR ARGES SEQUEIRA WHO WAS MURDERED IN COLD BLOOD BY AN ORGANIZATION WHOSE LEADER ADMITTED TO AN INVOLVEMENT IN THE KILLING THIS MAN FRANK IBARRA ROAMS FREELY THROUGH THE COUNTRY AND IS KNOWN TO PASS THROUGH THE MANAGUA AIRPORT PROBABLY IN THE SAME WAY USED BY THE TERRORIST CELLS RECENTLY DISCOVERED TO HAVE BEEN OPERATING OPENLY IN THE COUNTRY PRESIDENT CHAMORRO IS EVEN PROPOSING AN AMNESTY LAW TO CLEAR THE PRESENT SLATE OF THOSE IDENTIFIED AS PERPETRATORS OF THE SEQUEIRA KILLING AND OTHER CRIMES ON OCCASION THE PROPERTY INTERESTS OF THE ARMY ACTUALLY OVERRULE EXECUTIVE ORDERS A CASE IN POINT IS THE ORDER PRESIDENT CHAMORRO GAVE IN APRIL 1991 TO RETURN TO MY WIFE A BEACHFRONT PROPERTY THE ARMY HAD COVETED FOR ITSELF DESPITE MRS CHAMORRO'S ORDER TO RETURN THE HOUSE HER ATTORNEY GENERAL INFORMED ME AT THE TIME THAT HE HAD ORDERS SUPERIOR TO THOSE OF THE PRESIDENT TO RETAIN THE HOUSE FOR THE USE OF SANDINISTA ARMY COMMANDERS EVEN THOUGH LIKE IN THE US THE PRESIDENT IS SUPPOSEDLY THE COMMANDERINCHIEF THE HOUSE IS USED MOSTLY BY INDIVIDUALS WHO FORM THE EQUIVALENT OF THE US JOINT CHIEFS THEIR NAMES HAVE BEEN FLOATED RECENTLY AS POTENTIAL REPLACEMENTS FOR MR ORTEGA IN CASE PRESSURE FROM THE US FOR A COSMETIC REARRANGEMENT BECOMES TOO GREAT AS MY BROTHER ROBERTO SAID AT THE 60TH ANNIVERSARY CEREMONY FOR SOLKA WE WANT TO BE PART OF NICARAGUA'S NEW REALITY AND BE ALLOWED TO DO HONEST WORK WITHIN A FRAMEWORK OF RESPECT FOR PROPERTY AND HUMAN RIGHTS WHILE I MAY NOT GET TO SEE MUCH OF THIS FUTURE MY SONS AND NEPHEWS SOLKA'S THIRD GENERATION WILL CARRY THE TORCH AND THE PEOPLE OF NICARAGUA WILL CONTINUE UNABATED THEIR FIGHT FOR JUSTICE AND DEMOCRACY MR SOLORZANO FORMERLY GENERAL MANAGER OF LABORATORIOS SOLKA IS THE PRESIDENT OF THE COMMITTEE TO RECOVER PRIVATE PROPERTY SEIZED BY BOTH THE SANDINISTA AND CHAMORRO GOVERNMENTS 9308130071 930813 POTOMAC WATCH HERE'S AN IDEA BOMB THE SERBS SO BOSNIANS FOLD BY PAUL A GIGOT SAY WHAT YOU WILL ABOUT PRESIDENT CLINTON'S DOMESTIC POLICY AT LEAST HE HAS ONE THE SAME CAN'T BE SAID ABOUT THE FOREIGN HALF OF THIS FRUSTRATING PRESIDENCY THAT ADMITTEDLY TOUGH JUDGMENT COMES TO MIND AFTER HIS LATEST THREAT TO INTERVENE IN THE BALKANS ONLY TWO MONTHS AGO SECRETARY OF STATE WARREN CHRISTOPHER SAID BOSNIA WAS A HUMANITARIAN PROBLEM AND THE US WAS DOING ALL IT COULD NOW HE SAYS THE PROTECTION OF SARAJEVO IS IN OUR NATIONAL INTEREST ENOUGH SO TO RISK AMERICAN LIVES THIS LAST IS ALSO WHAT MR CHRISTOPHER SAID BACK ON FEB 10 BEFORE HIS SEVERAL FLIPFLOPS BUT NOW THE SERBS ARE SUPPOSED TO BELIEVE HE REALLY MEANS IT FOR HIS PART THE COMMANDER IN CHIEF HAS BEEN SILENT ON THE MATTER PREFERRING TO POSE IN FRONT OF POLICE OFFICERS IN THE ROSE GARDEN MAYBE THIS SILENCE IS DELIBERATE SINCE MR CLINTON HAS CEDED THE FINAL DECISION TO BOMB TO THE UNITED NATIONS SECRETARY GENERAL BOUTROS BOUTROSGHALI WHO HAS OPPOSED USING MILITARY FORCE ALL ALONG MR CLINTON VOWED TO BE A DOMESTIC PRESIDENT BUT FEW IMAGINED HE'D GO QUITE THIS FAR IN THE BUSH YEARS SOMEONE SAID WE HAD A PRESIDENT WHO WANTED TO BE SECRETARY OF STATE AND A SECRETARY OF STATE WHO WANTED TO BE PRESIDENT NOW WE HAVE A PRESIDENT WHO WANTS TO BE SECRETARY GENERAL AND A SECRETARY GENERAL WHO WANTS TO BE PRESIDENT IN FAIRNESS MR CLINTON INHERITED THE MESS IN BOSNIA BUT NOW HE'S IN CHARGE GEORGE BUSH'S POLICY THAT THERE WAS NO US VITAL INTEREST MAY HAVE BEEN CYNICAL BUT AT LEAST IT WAS COHERENT MR CLINTON'S POLICY HAS BEEN CARTER WITHOUT THE COHERENCE SAYS PATRICK GLYNN A BOSNIA EXPERT AT THE AMERICAN ENTERPRISE INSTITUTE MR CLINTON HAS LET THE US SLIDE EVER DEEPER INTO THE BALKAN MORASS WITHOUT OFFERING ANY STRATEGY TO END IT DESPITE THE BALLYHOO THE LATEST THREATS DON'T SEEM TO SIGNAL SUCH A STRATEGIC CHANGE THE US IS NOW INVESTING THE PRESTIGE OF NATO AND OF US AIR POWER ON BEHALF OF A FAMILIAR DIPLOMATIC GOAL NAMELY BOSNIAN SURRENDER ONE SENIOR CLINTON OFFICIAL DESCRIBES THE AIM AS STOPPING THE STRANGULATION OF SARAJEVO AND OTHER SAFE HAVENS WHILE ALSO BUYING TIME FOR THE BOSNIANS IN THEIR TALKS WITH THE MARAUDING SERBS TO PUT IT IN A LESS FLATTERING WAY THE US IS OFFERING TO BOMB THE SERBS IN ORDER TO PERSUADE THE BOSNIANS TO CAPITULATE THE CLINTON ADVISER ALL BUT ADMITS THAT THE US WANTS THE BOSNIANS TO ACCEPT THEIR NATION'S DISMEMBERMENT BOSNIAN PRESIDENT ALIJA IZETBEGOVIC HAS TO DO THE BEST DEAL HE CAN BEFORE WINTER SETS IN THE OFFICIAL SAYS I NEVER USE THE WORDS FAIR' OR JUST' TO DESCRIBE THIS SETTLEMENT THE OFFICIAL ADDS BUT IT'S THE LEAST OF THE EVILS AVAILABLE TO US BECAUSE EUROPE WON'T LIFT THE EMBARGO THAT BARS THE BOSNIANS FROM ACQUIRING THE ARMS TO DEFEND THEMSELVES EVEN THIS FAINT OPTIMISM ASSUMES THAT THE BOSNIANS WILL CONSPIRE IN THEIR OWN DEMISE WHICH BELIES BALKAN HISTORY AND IT ASSUMES THE SERBS WILL ABIDE BY ANY AGREEMENT ANOTHER LEAP OF FAITH MOREOVER IF THE IMPROBABLE DOES HAPPEN THEN THE US WOULD BE OBLIGED TO ENFORCE SUCH A DEAL PERHAPS EVEN WITH US PEACEKEEPING TROOPS WHICH HAS EVEN THOSE SYMPATHETIC TO US INTERVENTION WONDERING ABOUT THE STRATEGY HOW IRONIC IT WOULD BE SAYS INDIANA REPUBLICAN SEN RICHARD LUGAR IF WE FAIL TO DO EVEN THE MINIMUM THINGS TO DETER THE SERBS AND THEN ARE CALLED UPON TO PUT IN US GROUND FORCES WHERE WE REALLY GET CARVED UP A GREAT POWER LIKE THE US COULD ALWAYS DECIDE TO LIFT THE ARMS EMBARGO AND DO OTHER THINGS ON ITS OWN AS STRATEGISTS ALBERT WOHLSTETTER AND ZALMAY KHALILZAD HAVE ARGUED BUT THIS WOULD VIOLATE WHAT SO FAR SEEMS TO BE MR CLINTON'S MAIN FOREIGNPOLICY PRINCIPLE MULTILATERALISM THIS APPROACHES THE LUDICROUS IN MR BOUTROSGHALI'S DEMAND TO APPROVE ANY NATO BOMBING A HISTORIC FIRST NATO IS AFTER ALL A MULTINATION BODY ITSELF AND EVEN CLINTON OFFICIALS ADMIT THAT UN RESOLUTIONS ON BOSNIA DON'T REQUIRE UN APPROVAL FOR AIR STRIKES BUT IF YOU WANT TO USE MULTILATERALISM THERE ARE PRICES TO PAY SAYS THE SENIOR US OFFICIAL WE CAN HOPE ONE PRICE WON'T BE CONFUSION ABOUT HOW TO CONDUCT A WAR AMERICANS SAY THAT ONCE MR BOUTROSGHALI GIVES HIS OK THEN NATO TAKES OVER BUT THE BOMBING IS ALSO SUPPOSED TO BE SO PROPORTIONATE SO FINELY CALIBRATED DEPENDING ON SERBIAN BEHAVIOR THAT THE TEMPTATION FOR UN MEDDLING WILL BE STRONG WITH ALL THESE CAVEATS NO WONDER MANY BOSNIA HANDS THINK IT'S ALL JUST A BLUFF ANYWAY IF THIS ALL SEEMS HARSH KEEP IN MIND THAT THE WORLD HAS ALSO BEEN WATCHING HOW THIS YOUNG PRESIDENT HANDLES HIS FIRST FOREIGN POLICY TEST HISTORY WAS UNKIND TO MAKE IT BOSNIA BUT THE FLIPFLOPS AND DETOURS HAVEN'T ENHANCED HIS STATURE OR AMERICA'S ON OTHER FOREIGN MATTERS MR CLINTON GETS HIGH MARKS ONLY FOR HIS SUPPORT FOR BORIS YELTSIN SOMALIA LOOKS MORE AND MORE LIKE QUICKSAND AND CRUCIAL TRADE AGREEMENTS REMAIN UNDONE AS FOR BOSNIA ONCE AGAIN THIS WEEK THE SERBS SAID THEY WITHDREW THEIR TROOPS FROM THE STRATEGIC MOUNTAINS AROUND SARAJEVO EVEN AS OTHERS SAID THEY HADN'T AN AP REPORTER ASKED SERB SOLDIERS IF WESTERN THREATS HAD PROMPTED THEIR MOVEMENTS AND THEY BURST OUT LAUGHING 9308130070 930813 WHAT'S NEWS WORLDWIDE BOSNIAN SERBS SET CONDITIONS FOR FURTHER WITHDRAWAL OF THEIR FORCES THE SERBS SAID THEY HADN'T WITHDRAWN COMPLETELY FROM TWO PEAKS NEAR SARAJEVO AND COULDN'T DO SO UNTIL THE UN AGREED TO DECLARE A NEUTRAL ZONE THE ADMISSION WAS EXPECTED TO FURTHER COMPLICATE GENEVA PEACE TALKS WHICH ARE TO RESUME TODAY MEANWHILE BOSNIA'S VICE PRESIDENT ASSERTED THAT SERB TROOPS HAD DEPLOYED ROCKETS ON ONE OF THE MOUNTAINS OVERNIGHT BUT THAT THE UN PEACEKEEPING FORCE WASN'T MAKING THIS PUBLIC SECRETARY OF STATE CHRISTOPHER WAS CONSULTING BY PHONE WITH EUROPEAN FOREIGN MINISTERS ABOUT CONVENING A NATO MEETING THAT WOULD GIVE FINAL APPROVAL FOR AN ASSAULT AGAINST THE SERBS PRESIDENT CLINTON SIGNED A 57 BILLION AID PACKAGE FOR RESIDENTS OF THE FLOODED MIDWEST AND PAID TRIBUTE IN ST LOUIS TO 18 ORDINARY PEOPLE WHO WERE HEROES IN THE FLOOD THE BILL ALSO HELPS FARMERS SUFFERING FROM CROP LOSSES BECAUSE OF DROUGHT IN THE SOUTHEAST AND WEATHER PROBLEMS ELSEWHERE POPE JOHN PAUL II URGED AMERICANS TO GUARANTEE THE RIGHT TO LIFE AS HE BEGAN HIS THIRD VISIT TO THE US WITH ABORTIONRIGHTS ADVOCATE CLINTON STANDING BESIDE HIM IN DENVER THE PONTIFF HELD A PRIVATE MEETING WITH THE PRESIDENT DENVER IS THE FINAL STOP OF THE POPE'S WEEKLONG TRIP WHICH ALSO INCLUDED JAMAICA AND MEXICO THE HEAD OF THE MARINE CORPS SAID HE STILL THINKS BARRING ENLISTMENT OF MARRIED RECRUITS WOULD BE WISE BUT REGRETS HE TOOK STEPS TO DO THAT WITHOUT FIRST CONSULTING WITH HIS CIVILIAN SUPERIORS AT THE PENTAGON DEFENSE SECRETARY ASPIN ORDERED GEN MUNDY'S POLICY WITHDRAWN SHORTLY AFTER LEARNING OF IT WEDNESDAY US TROOPS OPENED FIRE IN MOGADISHU BUT THE UN SAID THE SOLDIERS ACTED CORRECTLY AND FIRED OVER THE HEADS OF SOMALI DEMONSTRATORS MEANWHILE THE ITALIAN GOVERNMENT CITING DIFFERENCES WITH UN OFFICIALS OVER PEACEKEEPING EFFORTS SAID IT WOULD MOVE ITS TROOPS FROM MOGADISHU TO LOCATIONS NORTH OF THE CAPITAL THE US AND RUSSIA INVITED ISRAEL THREE ARAB GOVERNMENTS AND A PALESTINIAN DELEGATION TO RESUME PEACE TALKS IN WASHINGTON AT THE END OF THIS MONTH THE STATE DEPARTMENT SAID IN JERUSALEM ISRAEL SOFTENED ITS STANCE ON NEARLY 400 ARABS DEPORTED TO LEBANON SAYING HALF OF THE MEN MAY RETURN NEXT MONTH AND THE REST BY THE END OF THE YEAR ARMED BLACK YOUTHS CHEERED AT A FUNERAL IN SOUTH AFRICA AS AFRICAN NATIONAL CONGRESS YOUTH LEADER PETER MOKABA URGED THEM TO DIRECT THOSE BULLETS AGAINST PRESIDENT DE KLERK THE YOUTHS FIRED SHOTS INTO THE AIR DURING OUTDOOR SERVICES IN TEMBISA FOR VICTIMS OF POLITICAL CLASHES AN OFFICIAL CALLED MOKABA'S REMARKS POLITICAL ARSON A MONROE LA MAN DIED OF A NEW STRAIN OF THE RODENTBORNE VIRUS FOUND IN THE SOUTHWEST SIGNALING THE DISEASE COULD EXIST IN DIFFERENT FORMS IN CONTRAST WITH OTHER CASES THE MAN WHO DIED IN JUNE PROBABLY WASN'T INFECTED BY DEER MICE OFFICIALS SAID ALSO THE STRAIN ATTACKED HIS LUNGS AND KIDNEYS RATHER THAN JUST THE LUNGS ONBOARD COMPUTERS ABORTED THE LAUNCH OF SHUTTLE DISCOVERY JUST THREE SECONDS BEFORE A FLORIDA LIFTOFF BUT SAFETY EQUIPMENT PROTECTED THE CREW AND SPACECRAFT IT WAS THE FOURTH TIME THIS YEAR THAT A SHUTTLE LAUNCH WAS HALTED LESS THAN 20 SECONDS BEFORE TAKEOFF NASA SAID A FUEL SENSOR MAY HAVE FED WRONG INFORMATION TO THE COMPUTERS THE FBI IS JOINING WITH GERMAN POLICE OFFICIALS TO HELP FIGHT ORGANIZED CRIME IN RUSSIA US OFFICIALS SAID A PERMANENT FBI INVESTIGATOR WILL BE SENT TO MOSCOW TO HELP RUSSIAN AUTHORITIES TAKE STEPS AGAINST ORGANIZED CRIME GROUPS WHICH HAVE ESTABLISHED TIES WITH ITALIAN US ASIAN AND LATIN AMERICAN CRIME ORGANIZATIONS NIGERIA'S CAPITAL WAS CRIPPLED BY A NATIONAL STRIKE TO PROTEST THE NULLIFICATION OF ELECTIONS THAT WERE TO RETURN NIGERIA TO CIVILIAN RULE OTHER CITIES IN THE SOUTHWEST WERE ALSO DESERTED ON THE FIRST DAY OF A PLANNED THREEDAY STRIKE BUT THE PROTEST APPEARED TO HAVE NO EFFECT IN NORTHERN NIGERIA OR ON THE COUNTRY'S OIL INDUSTRY THE ANGOLAN GOVERNMENT DISMISSED AN UNCONDITIONAL CEASEFIRE OFFER FROM REBEL LEADER SAVIMBI SAYING HE WAS TALKING ABOUT PEACE WHILE STEPPING UP AN ONSLAUGHT ON THE BESIEGED CITY OF CUITO GUERRILLAS OF SAVIMBI'S UNITA MOVEMENT WERE LOBBING 60 SHELLS AN HOUR INTO THE CITY OFFICIALS SAID 9308130069 930813 AUSTRALIAN CONSUMER SENTIMENT SYDNEY AUSTRALIA AN INDEX OF CONSUMER SENTIMENT IN AUSTRALIA ROSE 48 IN AUGUST FROM JULY TO ITS HIGHEST LEVEL IN MORE THAN FOUR YEARS WESTPAC BANKING CORP WHICH COMPILES THE INDEX WITH MELBOURNE UNIVERSITY'S INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH BASED ON NEWSPOLL MARKET RESEARCH SURVEYS SAID THE INDEX IS NOW 68 ABOVE ITS YEAREARLIER LEVEL THE LATEST SURVEY WAS CONDUCTED AUG 78 JOHN MCDONNELL SENIOR RESEARCH FELLOW WITH THE MELBOURNE INSTITUTE SAID THE CONSUMER SENTIMENT INDEX IS AT ITS HIGHEST LEVEL SINCE JANUARY 1989 THE GAINS HAVE RECOUPED A SHARP DROP IN THE INDEX IN JUNE 9308130067 930813 ERICSSON WINS BULGARIAN ORDER STOCKHOLM SWEDISH TELECOMMUNICATIONS GROUP TELEFON AB LM ERICSSON RECEIVED AN ORDER FROM RADIO TELECOMMUNICATION CO TO PROVIDE BULGARIA WITH ITS FIRST MOBILE TELEPHONE SYSTEM FINANCIAL DETAILS WEREN'T DISCLOSED RTC IS A JOINT VENTURE AMONG CABLE & WIRELESS PLC OF THE UK BULGARIAN TELECOMMUNICATIONS CO AND OTHER BULGARIAN INVESTORS ERICSSON SAID THE NETWORK IS PLANNED TO BE IN OPERATION BY THE END OF 1993 THE FIRST PHASE OF THE PROJECT WILL COVER THE CAPITAL CITY OF SOFIA AND AN IMMEDIATE EXPANSION IS PLANNED TO INCLUDE PLOVDIV THE ROAD BETWEEN SOFIA AND PLOVDIV AND TWO TOWNS ON THE BLACK SEA COAST ERICSSON SAID 9308130066 930813 LEISURE & ARTS BOOKSHELF THE CLANCY SOLUTION TO DRUG DEALING BY DAVE SHIFLETT IT IS GENERALLY A SHAME WHEN A HUMAN BEING IS KILLED UNLESS OF COURSE THAT PERSON HAPPENS TO DESERVE IT IN WHICH CASE WE MAY REGRET THE SCOUNDREL CAN'T BE KILLED TWICE OR MAYBE THREE TIMES IN HIS NEW BOOK WITHOUT REMORSE PUTMAN 608 PAGES 2495 TOM CLANCY CREATES A LARGE NUMBER OF EVIL CHARACTERS AND SETS AN EXNAVY SEAL ON THEIR TRAIL WITH LAUDABLE CONSEQUENCES WE FIND OURSELVES READING LATE INTO THE NIGHT SEEKING FRESH CORPSES LIKE BUZZARDS COMING OFF A HUNGER STRIKE MR CLANCY IS BEST KNOWN FOR HIS TECHNICAL KNOWLEDGE OF NUCLEAR SUBMARINES AND ADVANCED GIZMOS BUT THIS STORY ABOUT ROB KELLEY'S SINGLEHANDED DESTRUCTION OF A BALTIMORE DRUG RING WITH A SIDETRIP TO WARTIME NORTH VIETNAM IS MOST NOTABLE FOR ITS EXECUTIONS WHEN IT COMES TIME TO DEPOSIT A LOAD OF LEAD INTO A BAD GUY'S INTERNAL ORGANS KELLY IS A TRUE CARUSO IN ONE SCENE THE MAESTRO KNOCKS OFF A GENTLEMAN NAMED JUNIOR WITH A BANGSTICK A WEAPON PERHAPS NOT COINCIDENTALLY ASSOCIATED WITH THE KILLING OF SHARKS THE BRUTAL POWER OF THE SHOT DROVE THE AIR FROM HIS LUNGS IN A SURPRISINGLY LOUD WHOOSH FORCING JUNIOR'S MOUTH OPEN IN A WAY THAT SURPRISE MIGHT HAVE DONE AND TRULY HE WAS SURPRISED HIS EYES LOOKED INTO KELLY'S AND JUNIOR WAS STILL ALIVE THOUGH HIS HEART WAS ALREADY AS DESTROYED AS A TOY BALLOON KELLY IS ALSO VERY GOOD WITH THE ALLIMPORTANT HEAD SHOT WHICH IS BAD NEWS FOR SEVERAL DOPERS INCLUDING A FELLOW NAMED LITTLE BOB KELLY'S FIRST SHOT WAS NOT A GOOD ONE HITTING LOW AND DOING LITTLE DAMAGE BUT THE SECOND ENTERED THE TEMPLE CAROMING OFF THE THINKING PORTIONS OF THE SKULL AND RACING AROUND INSIDE LIKE A HAMSTER IN A CAGE ANOTHER TIME KELLY SHOWS HIS VERSATILITY WHILE DISPATCHING A BLADEWIELDING STREET TOUGH TWISTING ONE OF THE YOUNGSTER'S ARMS UNTIL IT NEARLY POPS OFF HIS BODY THEN DROPPING THE CURTAIN SOME READERS NOTING THE LACK OF A JUDICIAL PROCESS PRIOR TO THESE KILLINGS MAY ASSUME THAT VIGILANTISM IS BEING GLORIFIED HERE OR WORSE THAT MR CLANCY IS INSENSITIVE TO THOSE WHOSE DESCENT INTO CRIME MAY BE DUE TO A LACK OF VOCATIONAL OPPORTUNITIES MR CLANCY ALLOWS HIS PROTAGONIST TO RESPOND TO THESE CONCERNS EARLY IN THE BOOK JUST AS SOON AS HE'S DROPPED A PIMP WITH A COUPLE OF CLOSE IN BRAIN SHOTS PERHAPS HE'D TAKEN A WRONG TURN BEEN UNLOVED BY HIS MOTHER OR BEATEN BY HIS FATHER PERHAPS HE'D BEEN SOCIALLY DEPRIVED RAISED IN POVERTY OR EXPOSED TO INADEQUATE SCHOOLING BUT THOSE WERE MATTERS FOR PSYCHIATRISTS OR SOCIAL WORKERS JUST SO AND FOR THOSE WHO THINK IT'S HIGH TIME WE GOT TO BLAME A VICTIM OR TWO THIS HIGHLY ENTERTAINING BOOK REACHES A SORT OF ZENITH WHEN KELLY TOSSES BILLY A VERY BAD MAN INTO A DECOMPRESSION CHAMBER AND BEGINS SPINNING THE DIALS HIS WHOLE BODY FELT LIKE A BALLOON OR MORE PROPERLY A COLLECTION OF THEM LARGE AND SMALL ALL TRYING TO EXPLODE ALL PRESSING ON OTHERS AND HE COULD FEEL THAT SOME WERE STRONGER AND SOME WEAKER THAN OTHERS AND THE WEAKER ONES WERE THOSE AT THE MOST IMPORTANT PLACES INSIDE HIM HIS EYES WERE HURTING NOW SEEMING TO EXPAND BEYOND THEIR SOCKETS AND THE WAY IN WHICH HIS PARANASAL SINUSES WERE ALSO EXPANDING ONLY MADE IT WORSE AS THOUGH HIS FACE WOULD DETACH FROM THE REST OF HIS SKULL HIS HANDS FLEW THERE DESPERATELY TRYING TO HOLD IT IN PLACE BESIDES CONTRIBUTING TO THE DIALOGUE ON HOW TO BEST DEAL WITH THE NATION'S CRIME PROBLEM MR CLANCY ALSO DELIVERS SEVERAL MESSAGES ONE MIGHT HEAR ON RUSH LIMBAUGH'S INCOMPARABLE RADIO PROGRAM AMONG THEM IS THIS CRITICISM OF POLITICIANS WHO REVEAL THE NAMES OF US SPIES YOU COULDN'T RECRUIT AGENTS IF THE WORD GOT OUT THAT AMERICA DIDN'T PROTECT THOSE WHO WORKED FOR HER MR CLANCY IN FACT DRIVES HOME THE POINT BY CREATING A PAIR OF IVY LEAGUE TRAITORS WHO BETRAY THEIR COUNTRY TO THE KGB THE CAREFUL READER CATCHES A FAINT WHIFF OF IMPENDING DEATH AT THE MOMENT OF THEIR INTRODUCTION EARLY IN THE BOOK THEY WERE DINING OUT JUST OFF THE HILL TWO ACQUAINTANCES FROM NEW ENGLAND ONE A HARVARD GRADUATE THE OTHER FROM BROWN ONE A JUNIOR AIDE TO A SENATOR THE OTHER A JUNIOR MEMBER OF THE WHITE HOUSE STAFF CLEARLY THIS ONE HAS TO GO ALL IS NOT SMOOTH IN THIS BOOK SOMETIMES THE AUTHOR'S ATTENTION TO DETAIL SEEMS OVERDONE AS IN THIS SCENESETTING SENTENCE HE WALKED INTO CHATS SAUVAGES AT EIGHTSEVENTEEN WOULD AN ARRIVAL AT 830 HAVE COLLAPSED THE PLOT A LARGER PROBLEM COMES AT THE BOOK'S END THIS REVIEWER SKIPPED A MAJOR LEAGUE BASEBALL GAME IN ORDER TO READ HIS WAY TO THE IVY LEAGUERS' DEMISE BUT IS SAD TO REPORT THAT MR CLANCY FOR SOME REASON ALLOWS ONE TO ESCAPE REFUND PLEASE OR BETTER YET A SEQUEL A DECOMPRESSION CHAMBER IS A TERRIBLE THING TO WASTE 9308130065 930813 FINANCING BUSINESS MEXICO EQUITY & INCOME FUND INC MEXICO EQUITY & INCOME FUND INC NEW YORK SAID DIRECTORS APPROVED A RIGHTS OFFERING FOR SUBSCRIPTION OF ABOUT 21 MILLION SHARES OF THE CLOSEDEND INVESTMENT FUND THE FUND WHICH HAS 64 MILLION SHARES OUTSTANDING INVESTS AT LEAST HALF ITS ASSETS IN EQUITY AND CONVERTIBLE DEBT SECURITIES ISSUED BY MEXICAN COMPANIES AND MOST OF THE REMAINDER IN DEBT SECURITIES OF MEXICAN ISSUERS 9308130064 930813 MARKETING & MEDIA NEW YORK TIMES STOCK BUYBACK NEW YORK NEW YORK TIMES CO SAID IT BOOSTED BY ANOTHER 75 MILLION ITS CLASS A COMMON STOCK REPURCHASE PLANS PRIOR TO CLOSING ITS ACQUISITION OF BOSTON'S AFFILIATED PUBLICATIONS INC THE PUBLISHING COMPANY ALREADY HAS REPURCHASED 205 MILLION OF ITS SHARES UNDER A 250 MILLION BUYBACK PLAN THE TIMES IN JUNE AGREED TO BUY THE BOSTON PUBLISHER FOR 11 BILLION LARGELY IN STOCK AFFILIATED SHAREHOLDERS HAD THE RIGHT TO TURN DOWN THE OFFER IF THE AVERAGE PRICE OF TIMES SHARES FELL BELOW 22 A SHARE BEFORE THE CLOSING LANCE R PRIMIS PRESIDENT AND CHIEF OPERATING OFFICER SAID THE STOCK'S CURRENT PRICE IS ATTRACTIVE AND REPURCHASE WILL BENEFIT THE TIMES AND ITS SHAREHOLDERS IN COMPOSITE AMERICAN STOCK EXCHANGE TRADING TIMES SHARES FELL 125 CENTS TO 25375 A SHARE 9308130063 930813 CROSSLAND BANK IS SOLD TO INVESTORS FOR 332 MILLION BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL DEPOSIT INSURANCE CORP SAID IT SOLD CROSSLAND FEDERAL SAVINGS BANK TO A GROUP OF INSTITUTIONAL INVESTORS FOR 332 MILLION ENDING ITS CONTROVERSIAL TAKEOVER OF THE FAILED BROOKLYN THRIFT AT A MEETING YESTERDAY THE FDIC BOARD OF DIRECTORS REJECTED A BID FROM ANOTHER FINANCIAL INSTITUTION ANCHOR SAVINGS BANK A UNIT OF ANCHOR BANCORP OF HEWLETT NY BECAUSE IT GOT A BETTER PRICE FROM THE GROUP OF MUTUAL FUNDS MONEY MANAGERS AND PENSION FUNDS THE ANCHOR BID WAS ABOUT 20 MILLION LESS THAN THE 332 MILLION THE FDIC WILL GET FROM THE INVESTORS ACCORDING TO A PARTICIPANT IN THE NEGOTIATIONS THOUGH CROSSLAND WHICH HAS TOTAL ASSETS OF 53 BILLION IS LOSING MONEY AND HAS 11 BILLION OF NONPERFORMING ASSETS THE INVESTORS ARE GAMBLING THAT THE CURRENT MANAGEMENT WILL BE ABLE TO TURN THE BANK AROUND THE INVESTORS THEN WILL PROBABLY SELL IT THE MAJORITY OF THE INVESTORS PROBABLY DON'T EXPECT TO BE SHAREHOLDERS IN CROSSLAND FOR MORE THAN THREE TO FIVE YEARS SAID ONE OF THE INVESTMENT BANKERS WHO HANDLED THE SALE THE NEW YORK METRO AREA ISN'T A CONCENTRATED MARKET INVESTORS EXPECT MORE CONSOLIDATION THE AGENCY PROVIDED THE BUYERS WITH PROTECTION AGAINST LARGE UNEXPECTED LOSSES ON CROSSLAND'S BAD ASSETS UNDER A LOSSSHARING AGREEMENT THE FDIC WILL ABSORB 80 OF NET LOAN CHARGEOFFS OVER 179 MILLION BETWEEN NOW AND JUNE 30 1998 THE STOPLOSS PROTECTION IS ONE REASON THE FDIC RECEIVED SUCH A GOOD PRICE FOR CROSSLAND AN EXPERT ON BANK MERGERS SAID THE FDIC IS SELLING CROSSLAND FOR 100 OF ITS BOOK VALUE COMPARED WITH THE 60 TO 70 OF BOOK VALUE AT WHICH THRIFTS IN THE NEW YORK MARKET ARE CONVERTING FROM MUTUAL SAVINGS BANKS TO STOCKHOLDEROWNED INSTITUTIONS THE FDIC SOLD 12 MILLION SHARES AT 2350 EACH AND 50 MILLION OF SUBORDINATED DEBT TO NEARLY 50 INVESTORS ABOUT 10 BUYERS INVESTED MORE THAN 10 MILLION EACH BUT NO SINGLE INVESTOR WILL OWN MORE THAN 10 OF THE BANK'S SHARES THE FDIC RETAINED WARRANTS TO PURCHASE ONE MILLION CROSSLAND SHARES AT 2350 EACH WHICH WILL GIVE THE GOVERNMENT AN OPPORTUNITY TO PROFIT IF THE PRICE OF THE SHARES RISES KEEFE BRUYETTE & WOODS INC IN NEW YORK AND FRIEDMAN BILLINGS RAMSEY & CO IN WASHINGTON COMANAGED THE SALE THE GOOD PRICE THE FDIC IS GETTING FOR CROSSLAND IS A SWEET ENDING TO A CONTROVERSIAL TAKEOVER OF THE BANK IN JANUARY 1992 GENERALLY WHEN A BANK FAILS THE AGENCY SELLS THE INSTITUTION TO ANOTHER BANK BUT THE FDIC WAS DISAPPOINTED BY THE BIDS IT RECEIVED FOR CROSSLAND 18 MONTHS AGO AND DECIDED IT COULD SAVE MONEY BY TAKING OVER THE THRIFT REDUCING ITS BAD ASSETS AND SELLING IT AFTER BANKING AND REALESTATE CONDITIONS HAD IMPROVED THE AGENCY PUMPED 12 BILLION INTO CROSSLAND AND INSTALLED NEW MANAGEMENT WHEN IT SEIZED THE BANK MEMBERS OF CONGRESS AND BANKERS CRITICIZED THE MOVE ARGUING THAT THE AGENCY WAS FOOLISHLY TRYING TO OUTWIT THE MARKET HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ D TEXAS ALREADY HAS SAID THAT HE PLANS TO ASK THE GENERAL ACCOUNTING OFFICE TO INVESTIGATE THE TRANSACTION YESTERDAY FDIC CHAIRMAN ANDREW HOVE DEFENDED THE TAKEOVER IN COMPARISON TO THE ALTERNATIVES PRESENTED TO THE FDIC IN JANUARY 1992 WE BELIEVE THE CROSSLAND FEDERAL APPROACH SAVED THE BANK INSURANCE FUND APPROXIATELY 400 MILLION THE AGENCY ESTIMATES THE TOTAL COST OF DEALING WITH THE FAILED BANK WILL BE 889 MILLION 9308130062 930813 CORRECTION THE NAME OF A 1973 SUPREME COURT CASE WAS MISSTATED IN A JULY 21 RULE OF LAW COLUMN SEXBLIND JURISPRUDENCE ISN'T ALWAYS FAIR AND IN A LETTER TO THE EDITOR YESTERDAY THE CORRECT NAME IS FRONTIERO V RICHARDSON 9308130061 930813 BUSINESS BRIEFS RR DONNELLEY & SONS CO WILL ACQUIRE HCI HOLDINGS INC THE CLOSELY HELD PARENT OF BOOK PRINTER HADDON CRAFTSMEN INC SCRANTON PA TERMS WEREN'T DISCLOSED WARNER INSURANCE SERVICES INC AGREED TO ADMINISTER THE NEW YORK STATE ASSIGNEDRISK CAR INSURANCE BUSINESS OF ELECTRIC INSURANCE CO INVOLVING 5 MILLION OF PREMIUMS SIZELER PROPERTY INVESTORS INC PURCHASED A 270000SQUAREFOOT SHOPPING CENTER IN PALM BEACH FLA THE PROPERTY IS ANCHORED BY A KMART CORP STORE AND TWO OTHER MAJOR RETAILERS TERMS WEREN'T DISCLOSED SCHLUMBERGER LTD'S DOWELL UNIT SIGNED AN AGREEMENT TO BUY THE INTERNATIONAL DRILLING FLUIDS OPERATION OF NEW LONDON PLC 9308130060 930813 TRACKING TRAVEL BY JONATHAN DAHL SMALL BUSINESS IS LOSING OUT ON THE BIG BUSINESS OF AIRLINE DISCOUNTING FOR SEVERAL YEARS AIRLINES HAVE QUIETLY OFFERED SOME COMPANIES TICKET DISCOUNTS OF 10 TO 30 BUT A RECENT SURVEY FOUND THAT SMALL AND MIDSIZED COMPANIES BENEFIT LESS OFTEN FROM THE DEALS COMPANIES THAT BUY 5 MILLION TO 149 MILLION OF AIRLINE TICKETS A YEAR SAID THEY GOT CORPORATE DISCOUNTS ON ONLY 15 OF THEIR TICKETS SMALLER COMPANIES SAID THEY GOT SPECIAL DEALS LESS THAN 5 OF THE TIME BY COMPARISON COMPANIES WITH AIR TRAVEL OF MORE THAN 15 MILLION A YEAR WERE ABLE TO NEGOTIATE DISCOUNTS ON ABOUT HALF THE TICKETS THEY BOUGHT ACCORDING TO TOPAZ ENTERPRISES INC A PORTLAND ORE TRAVELMANAGEMENT COMPANY AIRLINES HAVE ALWAYS BEEN MORE INTERESTED IN STRIKING DEALS WITH BIG COMPANIES BECAUSE THEY HAVE SO MANY EMPLOYEES BUT SMALL BUSINESSES CAN USUALLY BETTER CONTROL EMPLOYEE TRIPS AND THUS BETTER GUARANTEE A CERTAIN VOLUME OF BUSINESS TO ONE AIRLINE OFTEN LARGE COMPANIES MAY HAVE TROUBLE ENFORCING AND MONITORING TRAVEL POLICIES IN THESE TROUBLED TIMES FOR AIRLINES HOWEVER CARRIERS ARE INTERESTED IN MORE THAN INCREASING THEIR OVERALL VOLUME MANY WANT TO INCREASE TRAFFIC ON SPECIFIC UNPROFITABLE ROUTES ONLY MAJOR COMPANIES USUALLY HAVE A LOT OF EMPLOYEES WHO FLY FREQUENTLY BETWEEN TWO CITIES TO VISIT A PLANT OR SUBSIDIARY IF ONLY HALF OF THE EMPLOYEES OF A BIG COMPANY AGREE TO USE ONE AIRLINE THAT CAN STILL GENERATE HUGE BUSINESS ALONG CERTAIN ROUTES SAYS JEANIE THOMPSONSMITH PRESIDENT OF TOPAZ LARGE COMPANIES ALSO ARE CONTINUING TO USE COMPUTERS MORE TO TRACK EMPLOYEE TRAVEL PATTERNS THAT HELPS THOSE BUSINESSES SHOW INDIVIDUAL AIRLINES HOW MANY TICKETS THEY WILL BUY DURING A YEAR SMALLER COMPANIES JUST CAN'T AFFORD THIS KIND OF SOFTWARE LIGHTNING NEVER STRIKES TWICE EXCEPT APPARENTLY IN THE CASE OF AIRPLANES THOUGH NO ONE KEEPS FIGURES SAFETY EXPERTS SAY THAT ON AVERAGE EACH COMMERCIAL AIRLINER IS STRUCK BY LIGHTNING ONCE A YEAR THAT WORKS OUT TO MORE THAN 4000 STRIKES A YEAR BASED ON THE NUMBER OF COMMERCIAL AIRCRAFT IT'S REALLY A FAR MORE COMMON OCCURRENCE THAN PEOPLE THINK SAYS J ANDERSON PLUMER PRESIDENT OF LIGHTNING TECHNOLOGIES A PITTSFIELD MASS COMPANY THAT DOES SIMULATED LIGHTNING TESTS FOR AIRLINES MR PLUMER SAYS HE WAS ON A PLANE THAT WAS STRUCK BY LIGHTING TWICE ON THE SAME FLIGHT WHEN LIGHTNING BOLTS STRIKE HE SAYS YOU DEFINITELY KNOW IT THE PLANE JOLTS THE SAME WAY A CAR DOES WHEN YOU'RE DRIVING OVER A BUMP REAL FAST A WHITE FLASH TYPICALLY FOLLOWS THAT IS BRIGHT ENOUGH TO CAUSE BLINDNESS FOR A MINUTE OR TWO BUT SEVERE DAMAGE TO COMMERCIAL AIRLINERS IS RARE ACCORDING TO THE NATIONAL TRANSPORTATION SAFETY BOARD THE LAST MAJOR JET TO GO DOWN BECAUSE OF LIGHTNING WAS A PAN AM 707 THAT CRASHED IN ELKTON MD IN 1963 LEAVING 81 PEOPLE DEAD COMMERCIAL AIRLINERS ARE NOW DESIGNED TO STEER LIGHTNING THROUGH A HARMLESS PATH AWAY FROM FUEL LINES AND OUT THE PLANE MR PLUMER SAYS THE BOLT MAY GO IN THE WING AND THEN OUT THE NOSE HE SAYS TO AVOID ANY DAMAGE TO A JET'S ELECTRONIC SYSTEM AIRLINERS ALSO ARE EQUIPPED WITH SPECIAL SHIELDING AROUND WIRES AND CONTROL BOARDS LIGHTNING TYPICALLY HITS PLANES WHEN THEY'RE CLIMBING OR DESCENDING THROUGH CLOUDS IT HAS STRUCK PLANES NOT ONLY BELOW BUT WELL ABOVE CLOUD LEVEL IN SOME CASES PLANES ALSO SERVE AS A CONDUCTOR TRIGGERING LIGHTNING WHEN THEY HIT CLOUDS EVERY DAY IN STATIONS AROUND THE COUNTRY AMTRAK OFTEN KEEPS PASSENGERS WAITING UNTIL THE LAST MINUTE TO LEARN THEIR TRAIN'S TRACK NUMBER CAUSING A STAMPEDE FOR SEATS ONCE THE ANNOUNCEMENT IS MADE BUT SOME TRAVELERS HAVE FOUND A WAY TO LEARN THE TRACK NUMBER EARLY AND ON UNRESERVED TRAINS WHICH SOMETIMES RUN OUT OF SEATS THAT CAN MAKE THE DIFFERENCE BETWEEN SITTING OR STANDING FOR HOURS AS ANY EXPERIENCED AMTRAK PASSENGER KNOWS IT DOES NO GOOD TO ASK AMTRAK AGENTS FOR THE TRACK NUMBER EVEN IF THEY KNOW IT OR KNOW HOW TO GET IT THEY WON'T TELL YOU THE TRICK IS TO LOOK FOR YOUR TRAIN NUMBER ON THE ARRIVAL BOARD AND SEE WHICH TRACK IT WILL BE ON WHILE TRACK NUMBERS USUALLY AREN'T POSTED ON DEPARTURE BOARDS UNTIL THE LAST MINUTE AMTRAK POSTS TRACK NUMBERS OF ARRIVALS EARLY SO FRIENDS AND FAMILY KNOW WHERE TO GREET PEOPLE THIS METHOD DOESN'T WORK IF YOUR TRAIN IS ORIGINATING IN YOUR CITY THE VAST MAJORITY OF PASSENGERS HOWEVER BOARD TRAINS THAT ORIGINATED ELSEWHERE AMTRAK SAYS IT DOESN'T POST DEPARTURE TRACK NUMBERS EARLY BECAUSE IT SOMETIMES CHANGES CREWS OR RESTOCKS A TRAIN'S CAFE CAR WE DON'T WANT A RUSH OF PEOPLE TRYING TO GET INTO THE TRAIN WHEN WE'RE TRYING TO SET UP SAYS A SPOKESMAN FOR AMTRAK BASED IN WASHINGTON BUT HE CONCEDES THERE'S NOTHING TO STOP PASSENGERS FROM CHECKING THE ARRIVAL BOARD WE SIMPLY ASK PEOPLE THAT THEY WAIT HE SAYS THE TRANSPORTATION DEPARTMENT'S MONTHLY ONTIME REPORT APPEARS TO HAVE LOST THE EFFECTIVENESS IT ONCE HAD IN PRESSURING AIRLINES TO BE PUNCTUAL THE LARGEST AND HEALTHIEST CARRIERS USED TO TRY TO MAKE SURE THEY COULD BOAST ABOUT GOOD ONTIME PERFORMANCE BUT IN JUNE THE THREE BIGGEST CARRIERS AMERICAN UNITED AND DELTA WERE THE THREE WORST IN ONTIME PERFORMANCE SOUTHWEST AIRLINES HAD THE BEST RECORD SALES TAX IN NEW YORK IS 8 SO WHY IS THE TAX ON CAR RENTALS THERE 13 THE STATE ADDS A 5 CARRENTAL TAX SIMILARLY RENTERS IN CHICAGO PAY ABOUT 18 IN TOTAL TAXES WHEN THEY RENT A CAR THAT'S BECAUSE INSTEAD OF SALES TAX THE CITY AND COUNTY IMPOSE A SLEW OF OTHER TAXES THAT APPLY TO CAR RENTALS 9308130059 930813 GOLD MINE OF LESSONS FROM EUROPE BY JUDY SHELTON EUROPE'S PEGGED EXCHANGE RATE SYSTEM HAS ALL BUT COLLAPSED AND DEPENDING ON WHOM YOU CONSULT THAT IS EITHER 1 A WELCOME RELIEF FROM THE MINDLESS RIGIDITY THAT HELD BACK ECONOMIC GROWTH OR 2 A FRIGHTENING VICTORY OF CURRENCY SPECULATORS OVER CENTRAL BANK MONETARY AUTHORITIES OR 3 THE END OF EUROPEAN UNITY HERE IS ANOTHER INTERPRETATION THE CURRENCY COLLAPSE IN EUROPE UNDERSCORES THE IMPORTANCE OF A STABLE MONETARY ORDER FOR THE FUTURE OF THE GLOBAL ECONOMY IF YOU CAN'T EVALUATE COMPETITIVE GOODS AND SERVICES ACROSS BORDERS IN TERMS OF THEIR PRICE YOU CANNOT HAVE A FUNCTIONING FREE MARKET IF PRICES CANNOT BE COMPARED IN TERMS OF A COMMON MONETARY UNIT THE FORCES OF SUPPLY AND DEMAND DO NOT COME INTO PROPER PLAY EUROPE SOUGHT TO HAVE A COMMON CURRENCY THROUGH A PEGGED RATE MECHANISM THAT REQUIRED GOVERNMENTS TO KEEP THEIR EXCHANGE RATES FIXED BY INTERVENING IN CURRENCY MARKETS THE EXPERIMENT FAILED IT'S IMPORTANT TO SEPARATE THE GOAL FROM THE FAILED APPROACH THE GOAL IS TO HAVE A COMMON MONETARY LANGUAGE SO THAT PRICE SIGNALS ARE ACCURATELY COMMUNICATED TO ALL MARKET PARTICIPANTS EUROPE HAD THAT PART RIGHT EVEN THOUGH INDIVIDUAL NATIONS OFFERED THEIR OWN CURRENCIES THE RELATIONSHIP BETWEEN THOSE CURRENCIES WAS MAINTAINED FAIRLY RIGIDLY AT LEAST UNTIL THE THING FELL APART SO LONG AS DIFFERENT CURRENCIES CAN BE CONVERTED INTO EACH OTHER AT A STABLE EXCHANGE RATE IT IS PRACTICALLY THE SAME THING AS HAVING A COMMON FORM OF MONEY THE LESSONS OF EUROPE'S MONETARY EXPERIMENT SHOULD NOT BE LOST ON A WORLD STRIVING TO MAXIMIZE THE GAINS FROM GLOBAL FREE TRADE THE PROBLEM LIES IN FIGURING OUT HOW TO OPERATE A SYSTEM OF FIXED EXCHANGE RATES AMONG THE VARIOUS NATIONS OF THE WORLD SO THAT INDIVIDUAL PRODUCERS CAN BRING THEIR WARES TO THE INTERNATIONAL MARKETPLACE AND COMPETE ON THE BASIS OF GENUINE MERIT AND COMPARATIVE ADVANTAGE WITHOUT HAVING TO WORRY ABOUT CURRENCY RISK OR DISTORTED PRICE SIGNALS THERE ARE ONLY SO MANY WAYS MAN HAS YET DEVISED TO COORDINATE CURRENCIES CONCEIVABLY YOU COULD HAVE A WORLD CURRENCY BUT THE FACT IS WE LIVE IN NATIONSTATES AND MOST PEOPLE ARE JUSTIFIABLY RELUCTANT TO TURN OVER THE MONETARY REINS TO A GROUP OF SUPRANATIONAL CENTRAL BANKING OFFICIALS WHO WOULD BE CHAIRMAN SOMEONE FROM THE MOON WHAT EUROPE TRIED TO DO WAS ESTABLISH FIXED RATES BY DECREE GOVERNMENTS SIMPLY ANNOUNCED THE DESIRED MATRIX OF EXCHANGE RATES AND INDICATED SMUGLY THAT THEIR CENTRAL BANKS WERE PREPARED TO MAKE IT HAPPEN THIS MEANT THAT CENTRAL BANKING AUTHORITIES WOULD MANIPULATE THE CURRENCY MARKETS AS NECESSARY TO THWART MARKET PRESSURES THAT THREATENED TO ALTER THE RELATIVE PRICES OF CURRENCIES THE CENTRAL OPERATING FEATURE BEHIND THIS APPROACH IS THE INTIMIDATION FACTOR CURRENCY MARKETS ARE OSTENSIBLY PRIVATE AND FREE BUT THE BIGGEST PLAYERS THE CENTRAL BANKS CAN RIG THEM WHENEVER SO DIRECTED BY THEIR GOVERNMENTS OF COURSE IT TAKES MONEY THAT WAS ALWAYS THEIR ACE IN THE HOLE VAST RESOURCES UNTIL THE BIGTIME CURRENCY SPECULATORS CAME ALONG WITH EVEN MORE RESOURCES MUCH HAS BEEN MADE OF THE FISCAL DISCIPLINE OF EUROPE'S PEGGED RATE SYSTEM BUT IN FACT EUROPEAN GOVERNMENTS WERE NEVER READY TO SACRIFICE DOMESTIC ECONOMIC PRIORITIES FOR INTERNATIONAL MONETARY STABILITY FIXED BUT FLEXIBLE WAS ALWAYS THE RALLYING CRY SORT OF LIKE AN OVERWEIGHT PERSON WHO RESOLVES TO GO ON A DIET AND VOWS THAT I WON'T EAT THIS CANDY UNLESS I GET REALLY REALLY HUNGRY SO WHEN EUROPEAN GOVERNMENTS GOT THEIR COMEUPPANCE FROM CURRENCY SPECULATORS WHO BEAT THEM AT THEIR OWN GAME THE EUROPEAN MONETARY SYSTEM DISINTEGRATED OR GOT MORE FLEXIBLE DEPENDING ON HOW YOU PORTRAY IT IN ANY CASE THE FALLBACK APPROACH IS A FLOATING RATE SYSTEM WHICH IS WORSE THAN PEGGED RATES IF IT WERE POSSIBLE TO HAVE A TRULY MARKETDETERMINED SYSTEM OF FREELY FLOATING RATES ALONG THE LINES ENVISIONED BY MILTON FRIEDMAN THEN IT MIGHT MAKE SENSE TO LET DEMAND AND SUPPLY FOR VARIOUS CURRENCIES DETERMINE THEIR PRICES PEOPLE WANTING TO ENGAGE IN INTERNATIONAL TRADE WOULD HAVE ONE MORE ELEMENT OF UNCERTAINTY TO FACTOR INTO THEIR GENERAL BUSINESS RISK NOT KNOWING HOW GYRATING CURRENCIES WOULD AFFECT THEIR PROFITS BUT AT LEAST THEY WOULD KNOW THAT EXCHANGE RATES AT ANY GIVEN MOMENT WERE AN HONEST REFLECTION OF THE MARKET'S ASSESSMENT OF CURRENCY VALUES HOWEVER THAT IS NOT THE WAY THE FLOATING RATE SYSTEM ACTUALLY WORKS THERE ARE NO ANTIPRICEFIXING REGULATIONS TO PROTECT THE LITTLE GUY FROM ACTIONS TAKEN BY GOVERNMENT CARTELS TO MOVE THE MARKET JUST AS UNDER A PEGGED RATE SYSTEM FINANCE OFFICIALS COLLUDE TO SET THE DESIRED EXCHANGE RATE RELATIONSHIPS AMONG THEIR CURRENCIES THE DIFFERENCE IS IN A FLOATING RATE SYSTEM THEY DO IT IN SECRET THE OFFICIALS WHO ENGAGE IN SUCH TACTICS REFER TO IT AS A MANAGED FLOAT MR FRIEDMAN CALLS IT A DIRTY FLOAT PRIVATE SPECULATORS GET INVOLVED TOO OF COURSE WITH THE ADDITIONAL CHALLENGE THAT THE GOVERNMENT DOESN'T HAVE TO SHOW ITS HAND THAT IS VERY TROUBLING HOW CAN YOU HAVE A GLOBAL ECONOMY OSTENSIBLY DEDICATED TO FREE TRADE AND NOT HAVE AN HONEST AND RELIABLE INTERNATIONAL MONETARY SYSTEM SO BUYERS AND SELLERS CAN FIND EACH OTHER AND TRANSACT BUSINESS ANYWHERE IN THE WORLD SURE THE ORDINARY BUSINESSMAN WHO WANTS TO SELL HIS PRODUCTS IN ANOTHER COUNTRY CAN ALWAYS PAY A SPECIALIST TO CONSTRUCT A CURRENCY HEDGE TO COVER HIS TRANSACTION OR HE CAN JUST FORGET THE WHOLE IDEA SOME ECONOMISTS CLAIM THAT THE COSTS OF ADJUSTING FOR EXCHANGERATE RISK ARE NEGLIGIBLE BUT WHEN AMERICA'S SIX TOP BANKS DERIVE MORE THAN 40 OF THEIR TOTAL PROFITS FROM CURRENCY TRADING WHICH THEY DID DURING THE SECOND QUARTER OF THIS YEAR DON'T TELL ME THERE ISN'T SOMETHING VERY WRONG WITH THE GLOBAL MONETARY SYSTEM IT IS INTERESTING THAT SO MANY OF THE ECONOMISTS WHO HAVE EXPRESSED PERSONAL GRATIFICATION AT EUROPE'S DECISION TO CAST OFF FIXED EXCHANGE RATES IN FAVOR OF FLEXIBILITY HAVE POINTED TO THE EARLIER PERIOD OF THE GOLD STANDARD AS AN EXAMPLE OF THE EVILS OF BEING CAUGHT IN A MONETARY STRAITJACKET AND YET THE CLASSICAL INTERNATIONAL GOLD STANDARD FUNCTIONED NOTHING LIKE EUROPE'S PEGGED EXCHANGE RATE SYSTEM UNDER THE PRE1914 GOLD STANDARD GOVERNMENTS HAD TO ANSWER TO AN OBJECTIVE MONETARY POINT OF REFERENCE NOT EACH OTHER A GOLD STANDARD PERMITS NATIONS TO SAFELY TRANSCEND POLITICS IN THEIR TRADE RELATIONS NO ONE CAN ACCUSE AN INANIMATE METAL OF BEING DICTATORIAL OR SELFISH OR ANY OF THE OTHER NASTY QUALITIES ATTRIBUTED TO GERMANY'S BUNDESBANK AN INTERNATIONAL GOLD STANDARD IS THE MONETARY ENACTMENT OF THE WISE DOCTRINE THAT GOOD FENCES MAKE GOOD NEIGHBORS THE BOUNDARIES ARE SPELLED OUT AND EVERYONE KNOWS THE RULES IS IT TIME TO GO BACK TO THE FUTURE SOUND MONEY IS THE ONLY PROPER FOUNDATION FOR AN OPEN WORLD ECONOMY AND A GLOBAL GOLD STANDARD WOULD ENSURE THAT NO GOVERNMENT COULD PERVERT THE TERMS OF INTERNATIONAL BUSINESS TRANSACTIONS BY MANIPULATING CURRENCY VALUES THE IDEA IS DENIGRATED AS A PET PROJECT OF CONSERVATIVES BUT WHAT COULD BE A STRONGER AFFIRMATION OF LIBERALISM IN THE CLASSIC HAYEKIAN SENSE THAN BEING WILLING TO SUBJECT INTERNATIONAL MONETARY RELATIONS TO THE ULTIMATE RULE OF LAW NOT OF MEN THOSE WHO DEMEAN THE MONETARY USE OF GOLD AS A PROVINCIAL VESTIGE OF THE PAST UNDERESTIMATE ITS CONTEMPORARY APPEAL AMONG FINANCIAL SOPHISTICATES FROM BEIJING TO BASEL AKIN TO SIR WINSTON CHURCHILL'S OBSERVATION ABOUT DEMOCRACY A GOLD STANDARD IS THE WORST FORM OF INTERNATIONAL MONETARY SYSTEM EXCEPT FOR ALL THE OTHERS MS SHELTON IS A RESEARCH FELLOW AT THE HOOVER INSTITUTION AT STANFORD UNIVERSITY HER BOOK MONEY MELTDOWN WILL BE PUBLISHED NEXT YEAR BY THE FREE PRESS 9308130058 930813 REVIEW & OUTLOOK EDITORIAL ASIDES BOSTON TEA PARTY AS THE NATION'S GOVERNORS GATHER IN TULSA OKLA THIS WEEKEND BILL WELD OF MASSACHUSETTS GETS THE AWARD FOR THE MOST CREATIVE RESPONSE BY A GOVERNOR TO THE COMING CLINTON TAX HIKES WORRIED THAT HIGHER FEDERAL TAXES WILL KEEP HIS STATE IN RECESSION GOVERNOR WELD CALLED THIS WEEK FOR A 200 MILLION CUT IN INCOME AND GAS TAXES TO OFFSET SOME OF THE 1 BILLION IN HIGHER TAXES HIS STATE MUST SHIP TO WASHINGTON NEXT YEAR WE HAVE TO SEND THE MESSAGE THAT WE ARE NOT TAXACHUSETTS' ANYMORE NO MATTER WHAT ANYONE ELSE MAY BE AT WHATEVER LEVEL HE SAID HIS ONLY REGRET IS THAT THE PROPOSED CUT COULDN'T BE LARGER AND STILL ENSURE A BALANCED BUDGET GOVERNOR STEVE MERRILL OF NEXTDOOR NEW HAMPSHIRE QUICKLY FOLLOWED WITH HIS OWN PLAN TO TRIM 146 MILLION IN SPENDING TO HELP COMPENSATE FOR THE HIGHER TAXES NOW IT'S UP TO OTHER GOVERNORS TO MAKE SIMILAR MOVES IF THEY WANT TO INCREASE THEIR STATES' CHANCES OF SURVIVING THE CLINTON TAX INCREASES 9308130057 930813 TECHNOLOGY ONCOGENE SIGNS PACT WITH CIBAGEIGY CORP PFIZER TO TEST DRUG UNIONDALE NY ONCOGENE SCIENCE INC SAID IT SIGNED AN AGREEMENT WITH CIBAGEIGY CORP AND PFIZER INC THAT PAVES THE WAY FOR CLINICAL TRIALS OF A NEW DRUG TO AID CANCER PATIENTS DISCOVERED BY ONCOGENE THE DRUG TRANSFORMING GROWTH FACTOR BETA 3 WOULD BE THE COMPANY'S FIRST MAJOR PRODUCT TO GO INTO CLINICAL TRIALS UNDER THE AGREEMENT CIBAGEIGY WILL MANUFACTURE THE DRUG FOR ITSELF AND FOR PFIZER CIBAGEIGY HAS GLOBAL RIGHTS TO DEVELOP THE DRUG TO TREAT SKIN ULCERS AND BEDSORES WHILE PFIZER CONTINUES TO HAVE GLOBAL RIGHTS TO DEVELOP IT FOR ORAL MUCOSITIS A DEBILITATING SIDE EFFECT OF CHEMOTHERAPY DEVELOPING AND MARKETING THE DRUG FOR WHICH ONCOGENE HAS SOUGHT BROAD PATENT PROTECTION WOULD HAVE COST HUNDREDS OF MILLIONS OF DOLLARS SAID CHIEF EXECUTIVE OFFICER GARY E FRASHIER MOST OF ONCOGENE'S REVENUE 71 MILLION FOR THE SIX MONTHS ENDED MARCH 31 IS GENERATED FROM SALE OF CHEMICAL REAGENTS WHICH ARE USED IN LABORATORY TESTING AND FROM RESEARCH CONTRACTS 9308130056 930813 CANADIAN STEEL OUTPUT UP OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 283426 METRIC TONS IN THE WEEK ENDED SATURDAY A 61 INCREASE FROM 267150 TONS IN THE PREVIOUS WEEK AND A 5 RISE FROM 270046 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 8621588 TONS A 51 INCREASE FROM 8201974 TONS A YEAR EARLIER 9308130055 930813 TECHNOLOGY IBM FILES SUIT AGAINST CONNER PERIPHERALS IN A PATENT DISPUTE A WALL STREET JOURNAL NEWS ROUNDUP INTERNATIONAL BUSINESS MACHINES CORP FILED A LAWSUIT AGAINST CONNER PERIPHERALS INC IN A PATENT DISPUTE INVOLVING COMPUTER DISKDRIVE TECHNOLOGY IBM ARMONK NY SAID IT FILED THE SUIT IN FEDERAL COURT IN SAN JOSE CALIF AND IS ASKING FOR UNSPECIFIED DAMAGES AND AN INJUCTION TO STOP CONNER A SAN JOSE MAKER OF DISK DRIVES FROM USING CERTAIN PATENTED IBM TECHNOLOGY CONNER SAID IN A STATEMENT THAT IT HAS NOT INFRINGED ON IBM'S PATENTS BUT RATHER HAS SUCCEEDED THROUGH OUR OWN INNOVATIONS AND SUBSTANTIAL EFFORTS THE SUIT WAS FILED AFTER THE TWO PARTIES FAILED TO COME TO A CROSSLICENSING AGREEMENT AN IBM SPOKESMAN SAID IBM WAS RELUCTANT TO FILE THE SUIT IBM IS A MAJOR CONNER CUSTOMER A CONNER SPOKESMAN SAID THE LITIGATION IS EXPECTED TO TAKE SEVERAL YEARS TO BE RESOLVED CONNER SAID IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE IBM CLOSED AT 4175 A SHARE DOWN 50 CENTS CONNER CLOSED AT 1125 DOWN 375 CENTS 9308130054 930813 LAW LEGAL BEAT STUDENTS OF DEFUNCT LAW SCHOOL ARE SEEKING 14 MILLION IN SUITS BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL WHAT DO LAW STUDENTS DO AFTER THEIR SCHOOL PRESIDENT HAS BEEN CONVICTED OF ARSON THEIR SCHOOL SHUT DOWN AND THEIR DEGREES DENIED SUE OF COURSE THAT'S WHAT A GROUP OF FORMER STUDENTS AT THE DEFUNCT COMMONWEALTH SCHOOL OF LAW LATE OF LOWELL MASS HAVE DONE IN AN EFFORT TO BE COMPENSATED FOR LOST OPPORTUNITIES IN THEIR CHOSEN CAREER THE FOUR PLAINTIFFS SAY THEY DESERVE 14 MILLION TO COVER A LIFETIME OF EARNINGS THAT THEY WOULD HAVE RECEIVED IF THEY HAD BEEN PERMITTED TO GET THEIR DEGREES AND BECOME LAWYERS THE EXSTUDENTS ADMIT THEY WERE TAKING A RISK WHEN THEY DECIDED TO ATTEND AN UNACCREDITED LAW SCHOOL IN THE FIRST PLACE SUCH SCHOOLS HAVEN'T PASSED MUSTER WITH AMERICAN BAR ASSOCIATION INSPECTORS WHO EVALUATE SCHOOLS' FINANCES LIBRARIES PROFESSORS AND CURRICULA AND IN MOST STATES THOUGH NOT IN MASSACHUSETTS GRADUATES CAN'T EVEN TAKE THE BAR EXAM TO PRACTICE LAW BUT THE PLAINTIFFS SAY THEY NEVER DREAMED THE RISK WOULD BE QUITE AS BIG AS IT TURNED OUT TO BE THOUGH MANY UNACCREDITED SCHOOLS EVENTUALLY GAIN ABA BACKING AT COMMONWEALTH FOUNDED IN 1985 THERE WERE A NUMBER OF REASONS THE SCHOOL FELL SHORT IT WAS CONSTANTLY IN DEBT AND ITS REVENUE PROJECTIONS WERE DEEMED DUBIOUS BY A STATE EDUCATIONAGENCY PANEL THE SCHOOL FAILED TO WIN EVEN STATE APPROVAL TO GRANT DEGREES AND TROUBLING REPORTS DOGGED THE SCHOOL'S COFOUNDER AND PRESIDENT MICHAEL BOLAND AN ENTREPRENEUR WITH NO LAW BACKGROUND FOR INSTANCE MR BOLAND WAS ACCUSED BY A FACULTY MEMBER OF INSTALLING CLOSEDCIRCUIT CAMERAS TO SPY ON CLASSROOM ACTIVITY MR BOLAND SAID THE CAMERAS WERE INSTALLED ONLY IN THE LIBRARY AND HALLS FOR SECURITY AND IN 1988 AFTER A FACULTY MEMBER WAS FIRED AND WENT ON TO FORM A COMPETING LAW SCHOOL NEARBY MORE THAN HALF THE 180MEMBER STUDENT BODY DEFECTED COMMONWEALTH COLLAPSED THE NEXT YEAR MR BOLAND RESIGNED AND WAS LATER CONVICTED OF ARSON FOR HAVING HIS BODYGUARD SET FIRE TO THE RIVAL LAW SCHOOL MR BOLAND SENTENCED TO EIGHT TO 10 YEARS IN PRISON IS APPEALING THE RULING IT WAS A VERY CIRCUMSTANTIAL CASE SAID MR BOLAND'S ATTORNEY ROBERT FINNERAN OF SALEM MASS AFTER PROBLEMS FIRST AROSE AT COMMONWEALTH PEOPLE ASSOCIATED WITH THE SCHOOL PERSUADED FORMER US SEN PAUL TSONGAS TO BECOME A TRUSTEE ALONG WITH BANCROFT LITTLEFIELD JR A RESPECTED BOSTON ATTORNEY AND THE WIFE OF US REP CHESTER G ATKINS D MASS WHEN THE SCHOOL FINALLY CLOSED MR TSONGAS JOINED OTHER COMMUNITY MEMBERS IN ASKING BOSTON'S EMERSON COLLEGE TO TAKE OVER THE PROGRAM AND ITS REMAINING 70 STUDENTS BUT EMERSON DREW BACK AFTER STUDYING THE PROPOSED DEAL AND THE STUDENTS WERE STILL OUT IN THE COLD MR TSONGAS AND THE EMERSON BOARD OF TRUSTEES NOW ARE BEING SUED BY THE FOUR FORMER COMMONWEALTH CLASSMATES WHO SAY THE ONETIME PRESIDENTIAL CANDIDATE PUBLICLY PROMISED TWICE THAT ALL COMMONWEALTH SCHOOL OF LAW STUDENTS WOULD GET THEIR DEGREES THE STUDENTS WHO ARE REPRESENTING THEMSELVES WHICH THEY MAY DO WITHOUT A LAW DEGREE ALLEGE BREACH OF CONTRACT STATE AND FEDERAL EDUCATION AGENCIES ALSO ARE NAMED AS DEFENDANTS IN THE SUIT MR TSONGAS SAID HE NEVER PROMISED THAT EVERYONE WOULD GET A DEGREE I'M NOT STUPID I'M SURE I SAID I WILL DO EVERYTHING I CAN TO TRY TO MAKE IT HAPPEN HE SAID MAYBE IF THIS IS HOW THESE STUDENTS TREAT THE LAW THEN IT'S BETTER THAT THEY'RE NOT LAWYERS EMERSON COLLEGE OFFICIALS DECLINED TO COMMENT THE STUDENTS SAY ALL THEY REALLY WANT IS A CHANCE TO COMPLETE THEIR DEGREES WITH FULL CREDIT FOR THE STUDIES THEY HAVE FINISHED ALTHOUGH OTHER CLASSMATES SWITCHED TO DIFFERENT INSTITUTIONS THE PLAINTIFFS SAY THEY WERE UNABLE TO DO SO BECAUSE THEY NEED WEEKEND UPPERLEVEL CLASSES INDEED TO MANY MIDCAREER PROFESSIONALS THE NATION'S DOZENS OF UNACCREDITED SCHOOLS WHICH TYPICALLY OFFER OFFPEAKHOUR CLASSES ARE THE ONLY PRACTICAL WAY TO GET A LAW DEGREE HOW MANY LAW SCHOOLS GIVE CLASSES ON WEEKENDS THAT'S THE THING SAID EXCOMMONWEALTH STUDENT MELVILLE CLARK OF HILLBURN NY WHO ALONG WITH HIS FELLOW PLAINTIFFS COMMUTED TO LOWELL MASS EVERY WEEK FROM NEW YORK THE FRIENDS WHOSE AGES RANGE FROM THE LATE 30S TO THE 60S HAD HOPED LAW DEGREES WOULD ADVANCE THEIR CAREERS MR CLARK WHO IS INTERNING TO BE AN ASSISTANT HIGHSCHOOL PRINCIPAL SAID THAT DESPITE HIS DISHEARTENING EXPERIENCE HE WOULD JUMP AT THE CHANCE TO ATTEND ANOTHER UNACCREDITED LAW SCHOOL I WOULD DO IT BECAUSE GETTING A LAW DEGREE WOULD BE SOMETHING I ALWAYS WANTED TO DO HE SAID AS FOR MR BOLAND HE HAS MORE TROUBLES THAN HIS ARSON CONVICTION HE HAS ALSO BEEN CHARGED BY FLORIDA PROSECUTORS OF BILKING A WIDOW OUT OF 500000 PART OF WHICH HE ALLEGEDLY INVESTED IN A TOPLESS BAR ALTHOUGH A LOWER COURT FOUND THE LAW UNDER WHICH HE WAS CHARGED UNCONSTITUTIONAL A FLORIDA APPEALS COURT RECENTLY REINSTATED THE CHARGES MR BOLAND WHO IS APPEALING SAID HE DID NOTHING WRONG AND THAT THE MONEY WAS A LOAN A GROUP OF LAWYERS PREDICTING A NEW WAVE OF DEALS THAT COULD REDUCE THE VALUE OF CORPORATE BONDS HAS PROPOSED A WAY TO GIVE STRONGER PROTECTION TO CREDITORS THE PROPOSAL CALLS FOR INCLUDING A PROVISION IN BOND CONTRACTS THAT WOULD BAR THE ISSUING COMPANY FROM PAYING STOCKHOLDERS THE PROCEEDS OF A SPINOFF OF ASSETS RESTRUCTURING OR A LEVERAGED BUYOUT THE LAWYERS PRESENTED THE PROPOSAL EARLIER THIS WEEK AT A MEETING OF THE AMERICAN BAR ASSOCIATION WHICH HISTORICALLY HAS BEEN ACTIVE IN DRAFTING MODEL CONTRACTS THAT GOVERN THE RIGHTS OF BONDHOLDERS THE PROPOSAL IS DESIGNED TO PROTECT BONDHOLDERS FROM TRANSACTIONS SUCH AS MARRIOTT CORP'S RECENT PLAN TO SPLIT INTO TWO COMPANIES UNDER THAT PLAN THE CREATION OF THE TWO COMPANIES WOULD LEAVE THE REALESTATE BUSINESS HOST MARRIOTT CORP WITH NEARLY ALL OF MARRIOTT'S LONGTERM DEBT MARRIOTT INTERNATIONAL THE HEALTHIER SEGMENT CONSISTING OF HOTEL AND FOODMANAGEMENT SERVICES WOULD BE VIRTUALLY DEBTFREE ONE OF THE STUDY'S AUTHORS IS F JOHN STARK GENERAL COUNSEL AT PPM AMERICA INC A UNIT OF BRITAIN'S PRUDENTIAL PLC A BONDHOLDER THAT HAS SUED MARRIOTT OVER THE SPINOFF THE OTHER AUTHORS ARE J ANDREW RAHL AND LORI SEEGERS LAWYERS AT NEW YORK LAW FIRM ANDERSON KILL OLICK & OSHINKSY WHICH REPRESENTS PPM IN THE SUIT ALTHOUGH SOME INVESTORS HAD PREDICTED THAT OTHER COMPANIES WOULD FOLLOW MARRIOTT'S LEAD BY SPINNING OFF DEBTLADEN UNITS THERE HAS BEEN LITTLE SUCH ACTIVITY SO FAR ANALYSTS SAID COMPANIES MAY BE RELUCTANT TO PROPOSE SUCH TRANSACTIONS FEARING THAT THEY WOULD MAKE INVESTORS WARY OF BUYING THEIR BONDS IN THE FUTURE IN LATE 1980S IN THE WAKE OF GIANT HIGHLY LEVERAGED DEALS MANY INVESTORS DEMANDED COVENANTS OR WRITTEN PROTECTIONS IN NEW CORPORATE BOND ISSUES BUT THE NUMBER OF SUCH DEALS HAS DWINDLED AND INVESTORS HAVE BECOME RELUCTANT TO PAY FOR PROTECTIONS BY ACCEPTING LOWER INTEREST RATES ON THEIR BONDS THE COVENANTS PROPOSED THIS WEEK HOWEVER MIGHT BE MUCH CHEAPER FOR INVESTORS THAN THE EARLIER COVENANTS BECAUSE THEY PUT FEWER CONSTRAINTS ON THE COMPANY ISSUING THE BONDS IN CONTRAST TO EARLIER COVENANTS THE PROPOSAL WOULD ALLOW SOME SPINOFFS AS LONG AS THEY DON'T COME AT THE EXPENSE OF BONDHOLDERS IF BOTH OF THE NEWLY SEPARATED COMPANIES REMAIN LIABLE FOR THE OLD DEBT THEN THERE IS NO PROBLEM WITH THE TRANSACTION MR RAHL SAID COMPENSATION AMONG GENERAL COUNSEL OF PUBLIC COMPANIES INCREASED AT A MUCH HIGHER RATE IN 1992 THAN IN 1991 ACCORDING TO A SURVEY PUBLISHED BY THE TRADE JOURNAL OF COUNSEL CHIEF LEGAL OFFICERS ENJOYED AN AVERAGE 13 INCREASE IN SALARIES AND BONUSES IN 1992 COMPARED WITH A 27 AVERAGE RISE IN 1991 ACCORDING TO THE SURVEY OF 255 COMPANIES' PROXY STATEMENTS THE TOP EARNER LISTED WAS TIME WARNER INC'S PETER HAJE AT 17 MILLION FOLLOWED BY GENERAL ELECTRIC CO'S BENJAMIN HEINEMAN AT 12 MILLION REASONS CITED FOR THE OVERALL INCREASES LAST YEAR INCLUDED AN EFFORT TO MAKE UP FOR LOWER SALARIES AND BONUSES IN 1991 AND AN INCREASE IN PROFITABILITY OF COMPANIES THAT HAVE REDUCED COSTS THROUGH ATTRITION ALSO SOME GENERAL COUNSEL ASSUMED NONLEGAL DUTIES THAT ENTITLED THEM TO HIGHER COMPENSATION BUT INCOME DROPPED FOR MANY AIRLINE INHOUSE COUNSEL PROBABLY BECAUSE OF THE PRICE WARS AND THE GENERAL COMPETITIVE SITUATION IN THE AIRLINE INDUSTRY SAID STEVE NELSON OF COUNSEL'S EXECUTIVE EDITOR EDWARD FELSENTHAL CONTRIBUTED TO THIS ARTICLE 9308130052 930813 ENTERTAINMENT TURNER NEARS PACTS TO BUY FILM PRODUCERS BY DAVID J JEFFERSON AND RICHARD TURNER STAFF REPORTERS OF THE WALL STREET JOURNAL HOLLYWOOD TED TURNER IS CLOSE TO TURNING INTO REALITY HIS LONGHELD DREAM TO BECOME A MAJOR FORCE IN THE MOVIE PRODUCTION BUSINESS INDUSTRY SOURCES SAY THE FLAMBOYANT AND VISIONARY MEDIA ENTREPRENEUR IS FINALIZING SEPARATE PLANS TO ACQUIRE INDEPENDENT MOVIE PRODUCERS CASTLE ROCK ENTERTAINMENT AND NEW LINE CINEMA CORP FOR AS MUCH AS 500 MILLION COMBINED MR TURNER'S ATLANTABASED TURNER BROADCASTING SYSTEM INC HAS STRUCK A TENTATIVE AGREEMENT TO ACQUIRE CASTLE ROCK ENTERTAINMENT THE HOLLYWOOD PRODUCTION COMPANY RESPONSIBLE FOR SUCH HITS AS A FEW GOOD MEN AND IN THE LINE OF FIRE FOR ABOUT 100 MILLION IN CASH AND STOCK AND IS CLOSE TO REACHING AN AGREEMENT TO ACQUIRE NEW LINE FOR 300 MILLION TO 400 MILLION IN A STOCK SWAP PEOPLE CLOSE TO THE TALKS SAY IF BOTH COMPANIES ARE ACQUIRED MOST EXECUTIVES BELIEVE THAT MR TURNER WOULD LET THEM OPERATE AUTONOMOUSLY IN NEW LINE MR TURNER WOULD GAIN A FILM DISTRIBUTION COMPANY THAT IS A BIG PRODUCER OF SMALL FILMS SUCH AS MENACE II SOCIETY AND GLENGARRY GLEN ROSS IN CASTLE ROCK HE WOULD GAIN ONE OF HOLLYWOOD'S MOST RESPECTED INDEPENDENT PRODUCTION COMPANIES HOWEVER THE BIG STUDIO FILMS THAT CASTLE ROCK MAKES ALMOST CERTAINLY WOULDN'T BE DISTRIBUTED THROUGH NEW LINE A MEDIUMSIZED INDEPENDENT WHOSE DISTRIBUTION APPARATUS IS BETTER SUITED TO SMALLER NICHE FILMS IF THE ACQUISITIONS RECEIVE APPROVAL FROM THE TURNER BROADCASTING BOARD AND FROM MAJOR CASTLE ROCK SHAREHOLDERS THEY WOULD GIVE MR TURNER HIS LONGSOUGHT SOURCES OF FRESH PROGRAMMING FOR HIS CABLE EMPIRE WHICH HAS BEEN LARGELY DEPENDENT ON THE LIBRARY OF OLD METROGOLDWYNMAYER MOVIES THAT HE ACQUIRED IN THE 1980S CASTLE ROCK HAS NOT ONLY MADE SUCH SLEEPER HITS AS WHEN HARRY MET SALLY AND CITY SLICKERS BUT ALSO PRODUCES THE SUCCESSFUL TELEVISION SHOW SEINFELD NEW LINE HAS BEEN MORE SUCCESSFUL WITH LOWBUDGET FARE SUCH AS NIGHTMARE ON ELM STREET AND TEENAGE MUTANT NINJA TURTLES BUT THE ACQUISITIONS HINGE ON THE APPROVALS OF SEVERAL INDUSTRY BEHEMOTHS INCLUDING TIME WARNER INC WHICH OWNS A 206 STAKE IN TURNER BROADCASTING AND HOLDS THREE SEATS ON ITS BOARD AND TELECOMMUNICATIONS INC A CABLE OPERATOR THAT ALSO OWNS A LARGE STAKE IN TURNER SONY CORP WHOSE SONY PICTURES ENTERTAINMENT OWNS 44 OF CASTLE ROCK AND HAS MADE GOOD PROFITS FROM DISTRIBUTING CASTLE ROCK'S FILMS WOULD ALSO HAVE TO GIVE ITS BLESSING THE FELLOWS AT SONY ARE NOT ANXIOUS TO LET US GO SAID ALAN HORN THE VETERAN FILM AND TELEVISION EXECUTIVE WHO COFOUNDED CASTLE ROCK IN 1987 THOUGH MR HORN DECLINED TO PROVIDE DETAILS PEOPLE CLOSE TO THE TALKS SAY ONE SCENARIO HAS TURNER BROADCASTING PAYING 40 MILLION TO SONY AND EXTENDING CASTLE ROCK'S DISTRIBUTION AGREEMENT THROUGH 1998 THAT AGREEMENT IS SET TO EXPIRE IN 1996 WESTINGHOUSE ELECTRIC CORP WHICH HOLDS ABOUT 15 OF CASTLE ROCK WOULD GET 20 MILLION IN CASH AS WELL AS PAYMENT ON A NOTE VALUED AT BETWEEN 40 MILLION AND 50 MILLION A FIGHT FROM SONY OR WESTINGHOUSE COULD TANK THE DEAL WITH TURNER WE'VE HAD AN EXCELLENT RELATIONSHIP WITH SONY AND WESTINGHOUSE AND WE LOOK FORWARD TO ARRIVING AT AN AGREEMENT THAT WILL SATISFY ALL THE PARTIES OR WE'RE NOT GOING TO DO IT MR HORN SAID A SONY PICTURES SPOKESMAN DECLINED TO COMMENT AS DID SPOKESMEN FOR TURNER TIME WARNER AND NEW LINE MR TURNER'S TALKS TO ACQUIRE CASTLE ROCK AND NEW LINE BEGAN AT DIFFERENT TIMES AND INDUSTRY EXECUTIVES SAY IT IS A COINCIDENCE THAT BOTH DEALS ARE COMING TO NEARFRUITION SIMULTANEOUSLY THE DEALS WERE REPORTED YESTERDAY BY THE LOS ANGELES TIMES AND VARIETY MR TURNER INITIALLY HAD PURSUED TALKS WITH PARAMOUNT COMMUNICATIONS INC BUT WHEN THOSE LED NOWHERE HE STARTED TALKING WITH CASTLE ROCK SEVERAL MONTHS AGO THE TALKS STALLED AND MANY EXECUTIVES LEFT FOR VACATION WITH THE EXPECTATION NEGOTIATIONS MIGHT BE RESUMED AFTER LABOR DAY BUT THEY GOT BACK ON TRACK THIS WEEK APPARENTLY BECAUSE MR TURNER HAD RECEIVED NEW SIGNS OF APPROVAL FROM TIME WARNER AND TCI RANDALL BOOTH FORMER CHIEF FINANCIAL OFFICER OF TURNER AND NOW AN INVESTMENT BANKER AT ATLANTA'S CAPITAL CITY ADVISORS IS SAID TO BE A KEY ARCHITECT OF THE DEAL WORKING WITH EXECUTIVES OR ADVISERS FOR SONY WESTINGHOUSE AND CASTLE ROCK AT BANNON & CO IN BEVERLY HILLS CALIF THE PARTIES PLAN TO TO FLY TO NEW YORK THIS WEEKEND TO TRY TO COMPLETE THE TALKS AND THE PLAN COULD GO BEFORE THE TURNER BOARD AS EARLY AS TUESDAY PEOPLE FAMILIAR WITH THE SITUATION SAY WHILE MR HORN CONFIRMED ONLY THAT CASTLE ROCK IS INTO ADVANCED STAGES OF NEGOTIATIONS WITH TURNER BROADCASTING HE REITERATED THAT A DEAL REQUIRES THE AGREEMENT OF OUR PARTNERS AND WE WOULDN'T DO IT IF THEY WEREN'T HAPPY TO HELP KEEP SONY HAPPY TURNER WOULD GIVE SONY'S COLUMBIA PICTURES UNIT A HIGHER DISTRIBUTION FEE THAN IT CURRENTLY RECEIVES WITH CASTLE ROCK PEOPLE CLOSE TO THE TALKS SAID BUT COLUMBIA WOULD LOSE THE RIGHT TO DISTRIBUTE CASTLE ROCK'S FILMS IN FOREIGN TERRITORIES THESE RIGHTS TECHNICALLY ARE HELD BY NEW LINE THE LEGACY OF A COMPLICATED TRANSACTION INVOLVING THE FORMER NELSON ENTERTAINMENT BUT COLUMBIA HAS PICKED UP THE RIGHTS IN CERTAIN CASES NEW LINE'S FOREIGN ARRANGEMENT CALLS FOR IT TO ASK PERMISSION OF CREDIT LYONNAIS SA TO FINANCE FILMS COSTING OVER A CERTAIN LEVEL SAID TO BE ABOUT 25 MILLION BANK OFFICIALS PASSED ON FILMS INCLUDING A FEW GOOD MEN AND IN THE LINE OF FIRE BECAUSE THEY WERE TOO EXPENSIVE TURNER BROADCASTING ALREADY HAS A WORLDWIDE DISTRIBUTION SETUP FOR FILM AND HOME VIDEO WHICH IT USES TO DISTRIBUTE GONE WITH THE WIND AND THE OTHER 3700 TITLES IN THE MGM LIBRARY AS WELL AS MOVIES MADE FOR THE TNT CABLE CHANNEL SO TURNER WOULD BE POISED TO DISTRIBUTE CASTLE ROCK MOVIES IN THESE ARENAS STARTING NEXT YEAR AFTER FOUR MORE MOVIES INCLUDING THE COMING NEEDFUL THINGS AND MR NORTH ARE RELEASED UNDER EXISTING ARRANGEMENTS ALTHOUGH ROB REINER'S DIRECTORIAL TALENTS HAVE PROPELLED MUCH OF CASTLE ROCK'S SUCCESS THE COMPANY'S FIVE PARTNERS APPEAR TO HAVE AN ALL FOR ONE AND ONE FOR ALL ATTITUDE MR HORN WOULD BE CHAIRMAN AND CHIEF EXECUTIVE OF THE CASTLE ROCK ENTERTAINMENT UNIT OF TURNER AND THE FIVE PARTNERS WOULD SPLIT PERFORMANCE BONUSES WHICH WITH SUCCESSFUL FILMS ARE SAID TO HAVE THE POTENTIAL TO REACH 25 MILLION TO 50 MILLION SOURCES SAID THE CASTLE ROCK PARTNERS WOULD RECEIVE THEIR PORTION OF THE PURCHASE PRICE IN TURNER STOCK PEOPLE CLOSE TO THE TALKS SAID CASTLE ROCK'S STRUCTURE HAS BEEN FRUSTRATING FOR ITS PARTNERS BECAUSE THE COMPANY COULD ONLY AFFORD TO FINANCE SMALLER MOVIES SUCH AS MR SATURDAY NIGHT FOR MORE EXPENSIVE FARE SUCH AS IN THE LINE OF FIRE IT WOULD RECEIVE A PRODUCER'S FEE AND LIMITED PROFIT PARTICIPATION WHILE COLUMBIA RETAINED OWNERSHIP AND REAPED HUGE PROFITS ON A FEW GOOD MEN FOR EXAMPLE CASTLE ROCK WAS SAID TO HAVE MADE ABOUT 11 MILLION OR 12 MILLION IF IT HAD PRODUCED THE MOVIE IN THE SAME WAY AS ITS OTHER FILMS THE TAKE WOULD HAVE BEEN FIVE OR SIX TIMES THAT IT'S LIKELY THAT CASTLE ROCK AND NEW LINE WHICH IS PUBLICLY HELD AND 27OWNED BY ITS CHAIRMAN ROBERT SHAYE WOULD REMAIN SEPARATE PRODUCTION ENTITIES UNDER THE TURNER UMBRELLA WITH CASTLE ROCK RAMPING UP PRODUCTION TO 12 TO 15 FILMS A YEAR GETTING NEW SOURCES OF FUNDING FOR MAKING MORE MOVIES IS ONE OF CASTLE ROCK'S MAIN MOTIVES IN SEEKING AN ACQUIRER THE TURNER BROADCASTING BOARD APPARENTLY HAS GIVEN MR TURNER ITS BLESSING TO PURSUE AT LEAST THE CASTLE ROCK DEAL THE TRANSACTION WOULD GIVE TURNER SHAREHOLDER TELECOMMUNICATIONS AN INSIDE TRACK ON PAYPERVIEW RIGHTS TO CASTLE ROCK FILMS FOR ITS CABLE EMPIRE AS FOR TIME WARNER THE BENEFITS ARE LESS CLEARCUT TIME WARNER IS SAID TO WANT TO MONETIZE OR CASH OUT ITS STAKE IN TURNER ALTHOUGH IT PREVIOUSLY HAS OPPOSED EFFORTS BY MR TURNER TO GET INTO FILM PRODUCTION BUT IT MAY NOT WANT TO ANTAGONIZE MR TURNER NOW FOR WHEN IT DOES CASH OUT TIME WARNER MAY WANT TO TRY TO TAKE CABLE NEWS NETWORK WHICH IT HAS LONG COVETED NEW LINE STOCK WAS UNCHANGED YESTERDAY AT 16875 IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE TURNER BROADCASTING STOCK FELL 375 CENTS TO 20625 ALSO IN AMEX COMPOSITE TRADING 9308130051 930813 HEARD ON THE STREET JUST WHEN DRUG STOCKS LOOKED LIKE POISON INVESTORS ARE FLOCKING TO GERMANY'S SCHERING BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL AT A TIME WHEN IT SEEMED THAT DRUG STOCKS WOULD NEVER MANAGE TO GET OFF THEIR KNEES ALONG COMES SCHERING AG THE SLEEPY GERMAN DRUG MAKER'S STOCK HAS ROCKETED 106 IN TWO DAYS IN FRANKFURT EUROPEAN ANALYSTS ARE BUSY CRUNCHING THE NUMBERS ON PROSPECTS FOR THE COMPANY'S HOT NEW MULTIPLE SCLEROSIS DRUG AFTER THE BLISTERING TWODAY GAIN SCHERING STOCK IS UP 29 SO FAR THIS YEAR EUROPEAN TRADERS CREDIT THE LATEST SPURT TO UPBEAT COMMENTS ABOUT THE NEW DRUG BETASERON BY SCHERING CHIEF FINANCIAL OFFICER KLAUS POHLE DURING PRESENTATIONS TO ANALYSTS IN NEW YORK THE IMPLICATION IS THAT US INVESTORS ARE BUYING THE STOCK AND THUS TAKING SOME CURRENCY RISK AS WITH ANY INVESTMENT ABROAD A WEAKENING DOLLAR BOOSTS THE VALUE OF A FOREIGN PORTFOLIO TO US INVESTORS A STRONGER DOLLAR WEAKENS IT SOME EUROPEAN ANALYSTS SEEM A BIT PUZZLED SAYING THEY THOUGHT REPORTS ABOUT THE DRUG SHOULD HAVE BEEN REFLECTED EARLIER IN SCHERING'S STOCK THE GERMAN SCHERING BY THE WAY ISN'T CONNECTED TO SCHERINGPLOUGH OF THE US TIES WERE SEVERED AROUND THE TIME OF WORLD WAR II THAT'S BECAUSE THE GERMAN COMPANY'S ORIGINAL US SUBSIDIARY WAS TAKEN OVER DURING THE WAR BY THE US GOVERNMENT WHICH LATER SOLD ITS ASSETS BETASERON A SYNTHETIC VERSION OF THE BETA INTERFERON PROTEIN WON US FOOD AND DRUG ADMINISTRATION APPROVAL LAST MONTH SCHERING EXPECTS A YEAR'S SUPPLY TO COST 8500 TO 10000 BUT DISCOUNTS IN GOVERNMENT HEALTH PROGRAMS COULD CUT THAT FIGURE TO 7500 ANALYSTS AT GOLDMAN SACHS IN LONDON ESTIMATE BETASERON SALES WILL HIT 236 MILLION MARKS ABOUT 137 MILLION NEXT YEAR ASSUMING THE DRUG IS APPROVED IN MAJOR EUROPEAN MARKETS IN 1995 SALES COULD ALMOST TRIPLE TO 756 MILLION MARKS PASSING THE ONEBILLIONMARK LEVEL BY 1996 GOLDMAN ADDED THE STOCK TO ITS RECOMMENDED LIST YESTERDAY SALES AT SCHERING'S DRUG DIVISION COULD REMAIN FLAT AT 39 BILLION MARKS THIS YEAR WITH GROUP PRETAX PROFIT LITTLE CHANGED FROM LAST YEAR'S 523 MILLION MARKS BUT GOLDMAN PREDICTS SCHERING CAN SUSTAIN 25 TO 30 COMPOUND ANNUAL EARNINGS GROWTH FROM 1994 THROUGH 1997 GOLDMAN SUGGESTS THE STOCK COULD REACH 1250 MARKS WITHIN A YEAR OR 17 TIMES ESTIMATED 1995 EARNINGS THE SHARES CLOSED AT 964 MARKS IN FRANKFURT TRADING YESTERDAY SCHERING LACKS THE RESEARCH PROWESS OF OTHER EUROPEAN POWERHOUSES SUCH AS GLAXO HOLDINGS PLC OR ROCHE HOLDING AG IT PRACTICALLY STUMBLED ONTO BETASERON THROUGH THE 1990 ACQUISITION OF TRITON BIOSCIENCES A SMALL US FIRM UNDER A PACT PREDATING THAT ACQUISITION CHIRON CORP WILL MAKE THE DRUG FOR SCHERING IN RETURN FOR A HEFTY 15 SHARE OF SALES UNTIL THE ADVENT OF BETASERON THE MAJORITY OF SCHERING'S DRUG SALES HAVE INVOLVED ORAL CONTRACEPTIVES AND IMAGING DIAGNOSTICS SUCH AS LIQUIDS INJECTED INTO PATIENTS BEFORE XRAYS A BIG CHUNK OF ANNUAL REVENUE STEMS FROM LICENSING PACTS TO SELL DRUGS MADE BY OTHER COMPANIES MULTIPLE SCLEROSIS IS A NEUOROLOGICAL DISEASE THAT STRIKES YOUNG ADULTS ABOUT 300000 PEOPLE IN THE US AND AN EQUAL NUMBER IN EUROPE ARE AFFLICTED HUNTING FOR FURTHER GROWTH SCHERING HAS TARGETED CARDIOVASCULAR MEDICINES AND CENTRAL NERVOUS SYSTEM DISEASES SOME ANALYSTS THINK SCHERING MIGHT DIP INTO ITS ONEBILLION MARK CASH HOARD AND ACQUIRE A FEW BIOTECH COMPANIES YESTERDAY SCHERING ALSO GOT A BOOST FROM A STUDY PUBLISHED IN THE NEW ENGLAND JOURNAL OF MEDICINE THE REPORT SUGGESTS THAT SOTALOL A BRISTOLMYERS SQUIBB DRUG LICENSED IN THE US TO SCHERING'S BERLEX LABORATORIES UNIT IS MORE EFFECTIVE THAN SIX COMPETITORS IN TREATING VENTRICULAR TACHYARRHYTHMIA A HEART AILMENT THAT KILLS 450000 AMERICANS A YEAR SCHERING WHICH HAS A TECHNOLOGICAL LEAD IN MAGNETIC RESONANCE IMAGING PRODUCTS HAS COME A LONG WAY SINCE IT EXASPERATED INVESTORS IN THE 1980S WITH ITS COLLECTION OF STODGY NONDRUG BUSINESSES INDUSTRIAL CHEMICALS AND ELECTROPLATING LINES HAVE BEEN SHED AND LAST MONTH SCHERING FINALLY MADE GOOD ON A LONGSTANDING PROMISE TO UNFETTER THE STRUGGLING AGRICHEMICAL DIVISION BY FORGING A BIG JOINT VENTURE WITH GERMAN ARCHRIVAL HOECHST AG SCHERING WILL RETAIN A 40 STAKE ANALYSTS SAY THE MOVE WILL ALLOW SCHERING TO CUT ANNUAL COSTS BY AS MUCH AS 200 MILLION MARKS AGRICHEMICALS ACCOUNTED FOR 22 OF SALES BUT BARELY BROKE EVEN LAST YEAR MORGAN STANLEY THINKS SCHERING'S CORPORATE OVERHAUL COULD BOOST NEXT YEAR'S PRETAX PROFIT MARGIN ABOUT THREE PERCENTAGE POINTS TO 145 THE HOOPLA SURROUNDING BETASERON PAINTS A SIMPLISTIC VIEW SAYS STEWART ADKINS A LONDONBASED LEHMAN BROTHERS ANALYST TO REACH THE TOP RANKS OF MAINSTREAM EUROPEAN DRUG COMPANIES SCHERING'S EMPHASIS FROM NOW ON MUST BE ON RESEARCH AND DEVELOPING NEW THERAPEUTIC AREAS RON WINSLOW CONTRIBUTED TO THIS ARTICLE CHIRON CORP WILL RECEIVE 30 OF NET US SALES OF SCHERING AG'S BETASERON UNDER AN AGREEMENT FOR CHIRON TO MANUFACTURE THE DRUG THE SHARE OF SALES WAS MISSTATED AS 15 IN FRIDAY'S HEARD ON THE STREET COLUMN 9308130050 930813 CREDIT RATINGS TIFFANY & CO NEW YORK STANDARD & POOR'S CORP SAID IT LOWERED ITS RATING ON THE JEWELRY COMPANY'S 50 MILLION OF EURODOLLAR ISSUE CONVERTIBLE SUBORDINATED DEBT TO TRIPLEB FROM TRIPLEBPLUS AND REMOVED THE RATING FROM ITS CREDITWATCH LIST S&P SAID THE DOWNGRADE REFLECTS THE UNFAVORABLE IMPACT OF TIFFANY'S RECENT DECISION TO ASSUME FULL RESPONSIBILITY FOR RETAIL ACTIVITIES AT 29 TIFFANY BOUTIQUES PREVIOUSLY OPERATED BY MITSUKOSHI LTD IN JAPAN THE DECISION MAY BE OF LONGTERM BENEFIT BUT COMES AT A TIME WHEN TIFFANY FACES DEPRESSED RESULTS DUE TO POOR ECONOMIC CONDITIONS HIGH STARTUP EXPENSES AND A LONG MATURITY CYCLE FOR INTERNATIONAL EXPANSION S&P SAID TIFFANY HAS ESTABLISHED A 575 MILLION PRODUCT RETURN RESERVE TO PROVIDE FOR THE REPURCHASE OF INVENTORY PREVIOUSLY SOLD TO MITSUKOSHI S&P NOTED 9308130049 930813 DOWNTOEARTH ADS ARE AIMED AT THOSE THINKING OF HEAVEN URSULINE ORDER OF NUNS SEEING THEIR NUMBERS DWINDLE LAUNCH RECRUITMENT DRIVE BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL YOUNGSTOWN OHIO IT ISN'T A NORMAL ADVERTISING ASSIGNMENT INSTEAD OF PROMOTING A LOWER PRICE OR BETTER TASTE THE FOLKS AT A CINCINNATI ADVERTISING AGENCY ARE PITCHING SOMETHING OF A MORE CELESTIAL ORDER THE NUNHOOD THEIR CLIENT IS THE FOURCENTURYOLD URSULINE ORDER AND THE MISSION IS TO HELP THE ROMAN CATHOLIC SISTERS BOOST THEIR RANKS WHICH HAVE PLUMMETED IN NORTH AMERICA TO FEWER THAN 3000 NUNS SCATTERED AMONG 20 CONVENTS AND IT MUST BE DONE SUBTLY AFTER ALL A HARDSELL CAMPAIGN PROBABLY WON'T MAKE SOMEONE SIGN UP FOR A LIFETIME COMMITMENT TO POVERTY CHASTITY AND OBEDIENCE WE HAD TO PULL BACK BECAUSE WE FELT THAT WHEN DEALING WITH THE SOUL AND GOD A SNAPPY HEADLINE WOULDN'T BE THE ANSWER TO ANYBODY'S QUESTIONS SAYS SIVE/YOUNG & RUBICAM COPYWRITER MELANIE MARNICH IT'S NOT LIKE SELLING A CHEESEBURGER AND SO MADISON AVENUE OR IN THIS CASE EAST SEVENTH STREET IN CINCINNATI CREATED AN IMAGE CAMPAIGN TO PUT TO REST THE STEREOTYPES OF THE CONVENT THE BLACK HABIT THE BIG WHITE COLLAR THE HAND GRIPPED AROUND A RULER LIKE OTHER ORDERS THE URSULINES HAD ADVERTISED IN CATHOLIC MAGAZINES BUT WITH LITTLE SUCCESS AND WHEN THEY LOOKED AT THEIR THINNING AND AGING RANKS HALF AS MANY NUNS AS 30 YEARS AGO THEY KNEW SOMETHING MORE THAN PRAYER WAS NEEDED IN RECENT YEARS THE NUNS IN YOUNGSTOWN WOULD GET JUST A HANDFUL OF INQUIRIES ANNUALLY AND SIGN UP JUST ONE OR TWO NOVICES IT IS A CRISIS FOR CONVENTS EVERYWHERE WHICH ARE FAST DWINDLING IN SIZE AND IN SOME CASES DISAPPEARING OVER THE PAST 25 YEARS THE TOTAL NUMBER OF NUNS IN THE US HAS FALLEN MORE THAN 50 TO 94000 FROM 178000 THE URSULINES DECIDED THEIR IMAGE NEEDED AN OVERHAUL THEY STUMBLED ON THE CINCINNATI AGENCY THROUGH A FRIEND WHOSE HUSBAND DEALT WITH THE FIRM THEY GAVE US AN UNCLUTTERED MESSAGE FOR A REAL CLUTTERED MARKETPLACE SAYS SISTER JACQUELYN HERPY THE NUN HERE WHO IS OVERSEEING THE NATIONWIDE CAMPAIGN THE AD AGENCY WHICH SAYS IT SPENT ABOUT 70000 WORTH OF ITS TIME AGREED TO DO THE CAMPAIGN PRO BONO THE RESULT IS A SERIES OF PRINT ADS A RADIO SPOT AND EVEN A DIRECTMAIL BROCHURE THAT TRY TO DEPICT WHAT BEING A NUN IN THE 1990S IS ALL ABOUT THE ADS WHICH WILL BEGIN RUNNING THIS FALL ARE BEING DISTRIBUTED TO URSULINE CONVENTS EACH OF WHICH WILL DO A LOCAL MEDIA CAMPAIGN ONE RADIO SPOT FEATURES A NUN ACTUALLY AN ACTRESS TALKING ABOUT HER BUSY SCHEDULE TAKING CLASSES FOR HER MASTER'S DEGREE DOING COMMUNITYSERVICE WORK AND MEETING FRIENDS I GUESS PEOPLE ARE SURPRISED WHEN THEY FIND OUT I'M A PAUSE NUN THE PRINT ADS SHOW REAL URSULINES AS MANY OF THEM ARE CONTEMPORARY WOMEN IN STREET CLOTHES DOING SOCIAL PROJECTS THERE IS SISTER MARY SCHEETZ ARMED WITH HAMMER AND NAILS WHO RENOVATED AND NOW RUNS TWO HOUSES IN YOUNGSTOWN FOR HOMELESS FAMILIES ANOTHER AD SHOWS SISTER PAM MUELLER A SPEECH PATHOLOGIST WITH A DEVELOPMENTALLY IMPAIRED BOY BECAUSE IN ORDER TO KEEP PACE WITH A CHANGING WORLD SAYS THE URSULINE'S NEW SLOGAN WE HAVE TO CHANGE WITH IT AND THAT'S WHAT BEING AN URSULINE IS ALL ABOUT BUT AREN'T NUNS SUPPOSED TO BE CALLED TO THEIR VOCATION BY A HIGHER POWER THAN ADVERTISING INDEED THEY ARE SAYS SISTER JACQUELYN BUT THE IMAGE CAMPAIGN HELPS THOSE WHO ARE CALLED FEEL MORE COMFORTABLE WHEN THEY HEAR THE CALLING SHE SAYS I THINK IT'S WONDERFUL WE HAVE TO MAKE PEOPLE AWARE THAT OUR LIVES ARE SO NORMAL SAYS SISTER VIRGINIA MCDERMOTT 78 YEARS OLD SISTER VIRGINIA HAS SEEN A LOT OF CHANGES IN HER 60 YEARS IN THE ORDER MOST OF HER COLLEAGUES HAVE SHED THEIR HABITS AND MANY HAVE CAREERS BEYOND THE TEACHING AND HOSPITAL WORK THAT WAS ONCE THEIR MAINSTAY THEY ARE LAWYERS SOCIAL WORKERS AND COMMUNITY ORGANIZERS THE FEW NEW ENROLLEES TEND TO BE IN THEIR 20S OR 30S FAR OLDER THAN THE ONCESTANDARD AGE OF 18 IN FACT THE YOUNGSTOWN COMMUNITY'S NEWEST RECRUIT IS A 50YEAROLD DIVORCEE WITH TWO CHILDREN AND A GRANDCHILD WHO CONVERTED TO CATHOLICISM SEVEN YEARS AGO THE CHURCH ANNULLED HER MARRIAGE THE OLDER SISTERS LIVE IN A MOTHER HOUSE A SPRAWLING COMPLEX ON PASTORAL GROUNDS THEIR ROOMS HAVE TELEVISION SETS AND BATHROOMS UPSTAIRS IS AN INFIRMARY TO PROVIDE NURSING CARE FOR THE MEMBERS AS OLD AS 98 THE SISTERS TAKE MEALS IN THE DINING HALL HAVE AN OPTIONAL DAILY MASS AND OFTEN SWIM IN AN OLYMPICSIZE POOL THOUGH WE LIVE IN WHAT USED TO BE CALLED AN INSTITUTION IT'S VERY HOMEY VERY CHUMMY SAYS SISTER VIRGINIA THE YOUNGER SISTERS SUCH AS SISTER JACQUELYN WHO IS 45 TEND TO LIVE IN GROUP HOUSES OR THEIR OWN APARTMENTS IN THE CITY SISTER JACQUELYN FOR INSTANCE NOW SHARES A HOUSE WITH THREE OTHER NUNS THE ORDER PAYS FOR THEIR HOUSING EDUCATION CARS FOOD AND TRAVEL IT ALSO PROVIDES 75 A MONTH FOR INCIDENTALS LIKE CLOTHING BUT HOW DOES SOMEONE AS STYLISH AS SISTER JACQUELYN CLAD ON A RECENT DAY IN BLACK CULOTTES PEARL EARRINGS AND A GOLD BRACELET SURVIVE SHE IS A BARGAINHUNTER FINDING BUYS LIKE A 300 PAIR OF DESIGNER SHOES FOR 399 IN CLEVELAND THAT STYLISHNESS SURPRISED THE AD AGENCY'S OFFICIALS THEY GO TO THE MOVIES THEY WASH CARS THEY WEAR STREET CLOTHES THEY DO MOST OF THE THINGS WE DO SAYS ACCOUNT REPRESENTATIVE KAREN BELL BUT NOBODY KNOWS THAT BY PROMOTING THEIR EVERYDAY LIVES THE URSULINE SISTERS HOPE TO COUNTER THE PEER PRESSURE THAT KEEPS SOME POTENTIAL RECRUITS FROM SIGNING ON SOME WHO EXPRESS A CALLING FIND THEMSELVES ABANDONED BY FRIENDS AND RELATIVES A 37YEAROLD OHIO HOSPITAL TECHNICIAN WHO DIDN'T WANT TO BE IDENTIFIED SAYS A FEW OF HER FRIENDS STOPPED SPEAKING TO HER WHEN SHE CONFIDED THAT SHE IS CONTEMPLATING BECOMING A NUN SHE SAYS ONE FRIEND TOLD HER I COULDN'T GO OUT TO A BAR WITH YOU OR ON VACATION WITH YOU BECAUSE I WOULDN'T KNOW HOW TO ACT ANOTHER PROBLEM THE SISTERS ARE ADDRESSING IS THE FEAR OF A LIFETIME COMMITMENT WHILE SISTER JACQUELYN DESCRIBES HER LIFE AS SO FULL OF OPPORTUNITIES SHE ALSO ACKNOWLEDGES THAT SHE IS AMONG JUST FOUR MEMBERS OF HER ORIGINAL CLASS OF 22 STILL IN THE ORDER NOW THE ORDER IS OFFERING SHORTTERM RESIDENCES OF A FEW YEARS TO WOMEN WHO AREN'T SURE THEY WANT TO BE NUNS ONE THING THE CAMPAIGN DOESN'T SHOW IS THAT NUNS DON'T ALWAYS TAKE THEMSELVES SERIOUSLY WHEN THEY SAW SISTER ACT THE WHOOPI GOLDBERG MOVIE ABOUT A SINGER HIDING OUT IN A CONVENT MANY HOWLED I WAS IN THE MOVIE THEATER LAUGHING MY FOOL HEAD OFF SAYS SISTER GERMAINE STARON 66 IF YOU HADN'T BEEN IN THE CONVENT YOU WOULDN'T REALIZE HOW FUNNY IT WAS 9308130048 930813 BUSINESS BRIEF ESTERLINE TECHNOLOGIES CORP THIRDQUARTER PROFIT IS PUT NEAR SECONDQUARTER LEVEL ESTERLINE TECHNOLOGIES CORP SAID IT EXPECTS TO REPORT FISCAL THIRDQUARTER EARNINGS THAT ARE FLAT TO DOWN COMPARED WITH ITS SECONDQUARTER RESULTS IN THE SECOND QUARTER ENDED APRIL 30 THE BELLEVUE WASH AEROSPACE EQUIPMENT MAKER POSTED NET INCOME OF 483000 OR SEVEN CENTS A SHARE ON REVENUE OF 716 MILLION IN THE YEARAGO THIRD QUARTER ENDED JULY 31 ESTERLINE EARNED 15 MILLION OR 23 CENTS A SHARE ON REVENUE OF 735 MILLION ESTERLINE SAID ITS SALES HAVE BEEN HURT BY WEAK ECONOMIES DOMESTICALLY AND INTERNATIONALLY 9308130047 930813 MARKETING & MEDIA ADVERTISING BERLIN TO LEAVE NEW YORK SHOP FOR NEW DDB NEEDHAM AGENCY BY KEVIN GOLDMAN ANDY BERLIN THE OUTSPOKEN PRESIDENT OF DDB NEEDHAM'S NEW YORK OPERATION IS EXPECTED TO STEP ASIDE TODAY AFTER A ROUGHANDTUMBLE 15MONTH TENURE MARKED BY CLASHES INSIDE AND OUTSIDE THE AGENCY DDB NEEDHAM WILL SET UP MR BERLIN IN HIS OWN NEW AGENCY LETTING HIM TAKE ALONG THE CLIENT HE HAD WORKED WITH MOST CLOSELY THE 50 MILLION VOLKSWAGEN OF AMERICA ACCOUNT HIS DRAMATIC SHIFT IN RESPONSIBILITIES COMES AFTER HE WAS BROUGHT ON BOARD IN MAY 1992 TO JUMPSTART THE STAGNANT NEW YORK OPERATION WHICH HAD JUST LOST THE WEIGHT WATCHERS ACCOUNT AND HADN'T WON ANY NEW BUSINESS IN YEARS BUT MR BERLIN RAN INTO SOME PROBLEMS OF STYLE AFTER JOINING THE BIG DDB NEEDHAM OPERATION FROM THE LAIDBACK AGENCY HE FOUNDED GOODBY BERLIN & SILVERSTEIN IN SAN FRANCISCO HE MANAGED TO OFFEND BRISTOLMYERS SQUIBB AFTER BRISTLING WHEN THE CLIENT MOVED SOME BUSINESS TO A RIVAL AND HE HAD PROBLEMS WITH THE NO 2 EXECUTIVE AT DDB NEEDHAM WORLDWIDE JOHN BERNBACH ASSOCIATES OF THE HIGHPROFILE MR BERLIN WHOSE PRESENCE IS AS LARGE AS HIS BARREL CHEST SAY HE DIDN'T FIT INTO THE SQUEAKYCLEAN SHOP EPITOMIZED BY ADS THAT PUT GRINNING BABIES IN THE CENTER OF MICHELIN TIRES MR BERLIN HIS FRIENDS SPECULATED YESTERDAY MAY HAVE WANTED TO HANG UP HIS OWN SHINGLE YET HOLD ON TO THE FINANCIAL COMFORTS OF DDB NEEDHAM'S PARENT OMNICOM GROUP STILL THE MOVE COMES AS A SURPRISE FOR MR BERLIN HAS BEEN DOWN THE STARTYOUROWNAGENCY PATH BEFORE INDUSTRY INSIDERS HAD BELIEVED HE WOULD BE IN FOR BIGGER THINGS AFTER COMING IN TO RUN DDB NEEDHAM NEW YORK WHICH HAS 526 MILLION OF THE ENTIRE AGENCY'S 4 BILLION IN ANNUAL BILLINGS THE NEW AGENCY WILL BE OWNED ENTIRELY BY DDB NEEDHAM AND MR BERLIN WILL TAKE ALONG AT LEAST ONE OTHER TOP EXECUTIVE FROM THE BIG AGENCY TONY WRIGHT CURRENTLY AN EXECUTIVE VICE PRESIDENT AND EXECUTIVE CREATIVE DIRECTOR OF NEEDHAM'S NEW YORK OFFICE NO SUCCESSOR IS EXPECTED TO BE NAMED FOR MR BERLIN AT DDB NEEDHAM AND ACCORDING TO AN AGENCY INSIDER HE IS EXPECTED TO CONTINUE TO HANDLE SOME OTHER NEEDHAM NEW YORK ACCOUNTS MR BERLIN'S DEPARTURE MAY LEAVE MR BERNBACH SON OF ONE OF THE ORIGINAL FOUNDERS OF THE FORERUNNER DOYLE DANE BERNBACH IN CONTROL OF THE NEW YORK OFFICE INDUSTRY OFFICIALS SAY THAT ALTHOUGH MR BERLIN GOT ALONG WELL WITH KEITH L REINHARD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF DDB NEEDHAM WORLDWIDE HIS RELATIONSHIP WAS LESS COMFORTABLE WITH MR BERNBACH THE PRESIDENT BUT AGENCY INSIDERS SAY THE TWO MEN HAVE PATCHED UP ANY DIFFERENCES THEY MAY HAVE HAD RECENTLY AND INDEED HAVE MADE A POINT OF HAVING LUNCH TOGETHER IN PROMINENT SPOTS TO STOP THE RUMORS OF THEIR PERSONALITY CLASH MESSRS BERLIN AND REINHARD DIDN'T RETURN PHONE CALLS MR BERNBACH'S OFFICE SAID HE COULDN'T BE REACHED MR BERLIN ENDURED A BOUT OF NEGATIVE PUBLICITY AFTER IT WAS REVEALED THAT HE RELEASED A MEMO TO HIS STAFF LAST YEAR POINTEDLY CRITICIZING BRISTOLMYERS SQUIBB A 24YEAR VETERAN CLIENT OF NEEDHAM AFTER THE DRUG MANUFACTURER REJECTED NEW WORK FOR EXCEDRIN FROM MR BERLIN'S CREATIVE TEAM THE EXECUTIVE CRITICIZED BRISTOLMYERS'S TENDENCY TO PIT ONE AGENCY AGAINST OTHERS THIS POLICY OF CONSTANT CREATIVE SHOOTOUTS IS REMINISCENT IN EFFECT AND TONALITY OF THE SPANISH INQUISITION HE WROTE IN A STAFF MEMO THAT LEAKED OUT NEEDHAM RESIGNED FROM THE ACCOUNT TWO MONTHS AGO BUT LESS THAN A MONTH LATER MR BERLIN WAS SOMEWHAT EXONERATED WHEN BRISTOLMYERS RIVAL JOHNSON & JOHNSON AWARDED ITS CLEAN & CLEAR LINE OF SKIN PRODUCTS AND SHOWER TO SHOWER POWDER ACCOUNTS TO NEEDHAM WITH AN IMPLIED PROMISE SAY NEEDHAM INSIDERS OF MORE VALUABLE JOHNSON & JOHNSON BUSINESS DOWN THE ROAD SINCE HIS ARRIVAL MR BERLIN HAS BEEN CREDITED WITH SAVING SOME IMPORTANT ACCOUNTS WITH HIS STRATEGIC SKILLS AND BACKSLAPPING GREGARIOUS MANNER AMONG THE CLIENTS SAVED FROM WALKING OUT THE DOOR WERE VOLKSWAGEN AND GTE TELEPHONE HE ALSO GAVE THE AGENCY A LARGE SHOT IN THE ARM IN TERMS OF POSITIVE PUBLICITY ALTHOUGH MR BERLIN'S POSITION AS PRESIDENT OF THE NEW YORK SHOP WON'T BE FILLED HIS DUTIES WILL BE SHARED BY MESSRS REINHARD AND BERNBACH JOHNSON & JOHNSON ISN'T EXPECTED TO BE AMONG THE CLIENT ROSTER OF MR BERLIN'S NEW AGENCY ALTHOUGH HE IS EXPECTED TO CONTINUE TO WORK ON THE ACCOUNT AT THE NEW AGENCY HE WILL CONTINUE TO FINETUNE THE ADS FOR VOLKSWAGEN IN AN INTERVIEW EARLIER THIS YEAR MR BERLIN SAID HIS GOAL WAS TO RETURN THE SASSY IRREVERENT TONE TO THE VOLKSWAGEN AG UNIT COMMERCIALS MR BERLIN DOESN'T MIND COURTING PUBLICITY HE IS THE SUBJECT OF A PROFILE BEING PREPARED FOR THE NEW YORKER FOR INSTANCE BUT HE WAS SILENT YESTERDAY WORKING AT HOME ON LONG ISLAND AND AWAITING THE ANNOUNCEMENT TODAY OF HIS NEW CHALLENGE AFTER TALKING TO SOME OF THE BESTKNOWN NAMES ON MADISON AVENUE ROYAL CROWN COLA CO OF MIAMI AWARDED ITS 8 MILLION TO 10 MILLION AD ACCOUNT TO GSD&M A MIDSIZE AUSTIN TEXAS AGENCY THAT HAD BEEN CREATING REGIONAL ADS FOR COCACOLA CO GSD&M RESIGNED FROM THE COKE BUSINESS WHEN IT RECEIVED THE ROYAL CROWN ACCOUNT SAID AGENCY PRESIDENT ROY SPENCE HE SAID THERE HAD BEEN NO CONFLICT OF INTEREST IN WORKING FOR ONE COLA ACCOUNT WHILE PITCHING ANOTHER I REALLY TRIED TO STAY FOCUSED ON DOING GREAT STUFF FOR COCACOLA SAID MR SPENCE WE DIDN'T BREACH ANY CONFIDENTIALITY A SPOKESMAN SAID COCACOLA INTENDS TO CONTINUE CUSTOMIZED MARKETING CAMPAIGNS FOR TEXAS BUT HADN'T DECIDED WHETHER TO HIRE A NEW AGENCY THERE RC CHIEF EXECUTIVE OFFICER AND PRESIDENT JOHN C CARSON SAID HE WAS INTRODUCED TO MR SPENCE AND THE GSD&M AGENCY THROUGH MUTUAL ACQUAINTANCES AT GOLD GREENLEES TROTT THE BRITISH AGENCY THAT OWNS GSD&M NEW CAMPAIGNS FOR RC COLA AND DIET RITE COLA ARE EXPECTED IN JANUARY MR CARSON SAID ROYAL CROWN IS A UNIT OF DWG CORP THE MIAMI SOFT DRINK COMPANY HAD APPEARED TO NARROW ITS SEARCH IN RECENT WEEKS TO TWO SAATCHI & SAATCHI CO AGENCIES IN NEW YORKBACKER SPIELVOGEL BATES AND CLIFF FREEMAN & PARTNERS THE ACCOUNT WAS PREVIOUSLY AT CRISPIN & PORTER ADVERTISING MIAMI THE MAKERS OF CRAFTMATIC ADJUSTABLE BEDS AND CONTOUR CHAIRS AGREED TO PAY MORE THAN 400000 IN RESTITUTION TO CONSUMERS TO SETTLE A 1991 CIVIL LAWSUIT CHARGING THE COMPANY AND ITS DISTRIBUTORS WITH MAKING FALSE ADVERTISING CLAIMS AND USING HIGHPRESSURE SALES TACTICS THE NEW YORK STATE ATTORNEY GENERAL SAID CRAFTMATIC/CONTOUR INDUSTRIES INC'S ADS AND MAILINGS WHICH STAR ART LINKLETTER MADE FALSE PROMISES OF GIFTS AND DISCOUNTS TO CUSTOMERS WHO PAID FROM 2000 TO 3000 FOR THE ADJUSTABLE BEDS AND CHAIRS THE SUIT ALSO CHARGES THAT THE TREVOSE PA COMPANY MADE FALSE HEALTH CLAIMS INCLUDING SAYING THAT USING THE BEDS AND CHAIRS COULD CURE ARTHRITIS AND HEART DISEASE CHARLES B CHERNOFSKY CRAFTMATIC'S ATTORNEY SAID WE'RE NOW IN COMPLIANCE WITH THE CONSENT DECREE AND HAVE BEEN FOR A WHILE THE COMPANY STOPPED MAKING THE CONTOUR CHAIR IN 1992 HE ADDED 9308130046 930813 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER CLINTON MAPS STRATEGY FOR THE COMING HEALTHCARE OVERHAUL BLITZ ADVISERS ACKNOWLEDGE THAT COMPROMISE WITH MODERATE REPUBLICANS IS KEY TO SENATE PASSAGE SENATORS CHAFEE PACKWOOD JEFFORDS AND DANFORTH ARE SEEN AS THE MOST PROMISING ALLIES BUT REPUBLICANS COMPLAIN THAT A 47PAGE HEALTH CARE UPDATE INTENDED TO PROVIDE LAWMAKERS WITH BROAD OUTLINES OF THE PENDING CLINTON PLAN WASN'T WIDELY CIRCULATED AMONG GOP MEMBERS AFTER CLINTON UNVEILS HIS PROPOSALS NEXT MONTH THE ADMINISTRATION PLANS A TWODAY UNIVERSITY TO SHOW HOW IT WOULD WORK THE PRESIDENT WILL MAKE TRIPS AT LEAST EVERY OTHER WEEK TO PROMOTE IT THE WHITE HOUSE SETS UP A HEALTHCARE MARKETING GROUP THE INTENSIVECARE UNIT IN THE SAME ROOM THAT HOUSED THE BUDGET PLAN'S EFFECTIVE BOILER ROOM OPERATION RUN BY ROGER ALTMAN HEADING IT UP WILL BE HEALTHPOLICY GURU IRA MAGAZINER A POLITICAL NEOPHYTE SLOW GROWTH IS SEEN FOR THE ECONOMY DESPITE WHITE HOUSE BOASTS MORTGAGE RATES ARE THE LOWEST IN DECADES BUT HOME SALES DON'T SHOW BROAD GAINS ANALYSTS BLAME THE WEAK JOB MARKET JOBS GREW 162000 IN JULY BUT ECONOMIST DAVID MUNRO SAYS ANECDOTES AND THE MATH OF JOBS STILL POINT TO MONTHLY INCREASES MORE LIKE 44000 ECONOMIST ED YARDENI SEES A SLOW GO' FOR THE ECONOMY ONE REASON FOR THE OUTLOOK BLEAK CONSUMER SENTIMENT WHITE HOUSE BUDGET CHIEF PANETTA HOPES PASSAGE OF THE BUDGET PLAN WILL GIVE PEOPLE A SENSE OF CONFIDENCE THAT WE HAVE OUR ACT TOGETHER ON THE ECONOMY YESTERDAY'S REPORT ON A DROP IN PRODUCER PRICES SHOULD STEM ANY FED MOVE TO RAISE INTEREST RATES FOR THE FORESEEABLE FUTURE GOP HOPES RISE FOR BIG GAINS IN THE 1994 CONGRESSIONAL ELECTIONS REPUBLICANS WILL GO AFTER DEMOCRATS WHO VOTED FOR CLINTON'S ECONOMIC PLAN THEY HOPE TO PICK UP AT LEAST FOUR SENATE SEATS WITH AN OUTSIDE CHANCE OF GAINING SIX OR SEVEN SEATS TO TAKE CONTROL ONE OF THE TOP TARGETS IS ARIZONA'S DECONCINI NEW JERSEY'S LAUTENBERG WHO VOTED AGAINST THE PLAN ALSO IS VULNERABLE THE GOP TALKS OF GAINING 25 HOUSE SEATS PUTTING IT ABOVE 200 FOR THE FIRST TIME SINCE 1958 DEMOCRATS HOPE TO OFFSET SENATE LOSSES BY KNOCKING OFF SUCH GOP SENATORS AS GORTON OF WASHINGTON AND DURENBERGER OF MINNESOTA THEY COUNT ON DOLE TO ANTAGONIZE VOTERS AS MR GRIDLOCK EVEN SOME GOP STRATEGISTS DOUBT HOUSE GAINS WILL MATCH OPTIMISTIC EXPECTATIONS WHAT YOU NEED IS AN ANTIDEMOCRAT TIDE SAYS GOP POLLSTER GLEN BOLGER IT DOESN'T EXIST NOW PEROT COULD BE A FACTOR IF HE BACKS CANDIDATES BUT SOME POLITICAL ANALYSTS DOUBT HE WILL HAVE THE NERVE UNITED WE SIT SAYS ANALYST CHARLES COOK WAITING FOR PEROT PRESSED FOR DETAILS ON HOW HIS ECONOMIC PLAN WOULD SAVE 141 BILLION THROUGH COST CONTAINMENT IN MEDICARE AND MEDICAID THE TEXAN PLEDGED ON NBC'S MEET THE PRESS AUG 2 IF YOU WOULD LIKE IT LATER I WILL GIVE IT TO YOU LATER I HAVE IT ALL WRITTEN DOWN A PRESS AIDE SAYS THERE ARE NO PLANS TO RELEASE DATA BUT PEROT MAY WANT TO UNVEIL SOMETHING NEXT WEEK IN A CSPAN INTERVIEW PAYBACK TIME WHITE HOUSE OFFICIALS LIVID OVER ARKANSAS REP THORNTON'S LASTMINUTE NO VOTE ON CLINTON'S BUDGET BILL LOOK FOR WAYS TO STRIKE BACK NOT ONLY IS THORNTON THE PRESIDENT'S OWN CONGRESSMAN BUT HE ALSO HOLDS A SAFE SEAT THE DEMOCRAT WON IN 1992 WITH 74 OF THE VOTE TIMELY REWARD THE CLINTON ADMINISTRATION FLOATS THE NAME OF AIRPORT LOBBYIST LINDA DASCHLE FOR THE FEDERAL AVIATION ADMINISTRATION'S NO 2 POST HER HUSBAND SOUTH DAKOTA SEN DASCHLE VOTED FOR THE CLINTON BUDGET CAROL CARMODY AN AIDE TO KENTUCKY SEN FORD IS ANOTHER CANDIDATE HMO HOOHA THE SUPPOSED DRAFT OF THE CLINTON HEALTHCARE PLAN THAT SANK HMO STOCKS THIS WEEK WAS WRITTEN BY THE DEMOCRATIC STAFF OF REP STARK'S HOUSE HEALTH SUBCOMMITTEE THEY CONCEDE IT WAS ONLY A GUESS BASED ON INFORMAL TALKS AND NEWSPAPER REPORTS STARK NOTES THAT THE CONSERVATIVE HERITAGE FOUNDATION LEAKED THE MEMO CLINTON FOCUSES ON THE FAR EAST AS A FOREIGNPOLICY PRIORITY PLEASED BY HIS PERFORMANCE AT THE TOKYO SUMMIT THE PRESIDENT MAY TOUR ASIA NEXT YEAR TO DEMONSTRATE THAT US INTERESTS THERE ARE PRIMARY HE BELIEVES HE HAS AN EFFECTIVE RESULTSORIENTED POLICY TOWARD JAPAN AND IS DEFUSING SECURITY THREATS ON THE KOREAN PENINSULA THE SEATTLE SUMMIT OF ASIAN LEADERS SLATED FOR NOVEMBER COULD SET THE AGENDA FOR NEXT YEAR'S TRAVEL BUT DIFFICULTIES LOOM CHINA STILL DABBLES IN EXPORTING WEAPONS ITS SHIPLOAD OF DANGEROUS CHEMICALS FOR IRAN COULD BRING A SHOWDOWN AT SEA CLINTON OFFICIALS THINK JAPAN'S NEW COALITION GOVERNMENT WILL BE MORE SYMPATHETIC TO SETTLING ECONOMIC DISPUTES BUT MAY BE TOO WEAK TO DELIVER ESPECIALLY BEFORE EXPECTED SPRING ELECTIONS NORTH KOREA WAFFLES ON NUCLEAR INSPECTIONS CLINTON MUST DECIDE BY SEPT 23 WHETHER TO OPPOSE LETTING BEIJING PLAY HOST TO THE OLYMPICS IN THE YEAR 2000 MINOR MEMOS LOCALS IN CHARLESTON WVA DUBBED THE SMALLER PRESIDENTIAL PLANE THAT CLINTON HAD TO FLY INTO THEIR CITY'S AIRPORT AIR FORCE ONEHALF THE HOUSE REPUBLICAN POLICY COMMITTEE HOLDS A FORUM ON THE CONGRESSIONAL SUNSHINE ACT TO REQUIRE MOST PROCEEDINGS TO BE PUBLIC THEN IMMEDIATELY MEETS IN PRIVATE TO DISCUSS THE PROPOSAL HUD'S ANDREW CUOMO PERSONALLY ANSWERS HIS OFFICE PHONE AND TELLS A CALLER MR CUOMO ISN'T IN BUT HIS DISTINCTIVE NEW YORK ACCENT GIVES HIM AWAY 9308130045 930813 BUSINESS BRIEF SMITH & NEPHEW PLC BRITISH GROUP'S PRETAX PROFIT JUMPED 27 FOR FIRST HALF BRITISH HEALTHCARE PRODUCTS GROUP SMITH & NEPHEW PLC SAID PRETAX PROFIT JUMPED 27 IN THE SIX MONTHS ENDED JULY 3 AS SALES CONTINUED TO GROW DESPITE ECONOMIC UNCERTAINTIES IN CONTINENTAL EUROPE AND REGULATORY WORRIES IN THE US PRETAX PROFIT ROSE TO 823 MILLION 121 MILLION HIGHER THAN ANALYSTS' FORECASTS FROM 646 MILLION A YEAR EARLIER THE COMPANY SAID PRETAX PROFIT BEFORE EXCEPTIONAL ITEMS AMOUNTED TO 763 MILLION UP 18 AN EXCEPTIONAL GAIN ON THE DISPOSAL OF THE COMPANY'S PLASTICS BUSINESS IN AUSTRALIA EARLIER IN THE YEAR NETTED 6 MILLION SMITH & NEPHEW EXPLAINED OVERALL SALES GREW 17 TO 4825 MILLION FROM 4107 MILLION THOUGH ABOUT 9 OF THE RISE WAS ATTRIBUTED TO CURRENCY FACTORS AND ADJUSTMENTS FOR DISCONTINUED BUSINESSES A 7 GROWTH IN UNDERLYING SALES WAS VIRTUALLY THE SAME AS THAT ACHIEVED IN THE YEAREARLIER PERIOD THE COMPANY SAID SMITH & NEPHEW PRODUCTS INCLUDE HIP IMPLANTS RUBBER GLOVES TOILETRIES AND SPECIALTY BANDAGES 9308130044 930813 INTERNATIONAL CZECH JOBLESS RATE IS UP FRANKFURT THE JOBLESS RATE IN THE CZECH REPUBLIC INCREASED TO 28 OF THE WORK FORCE AT THE END OF JULY FROM 26 AT THE END OF JUNE THE CZECH NEWS AGENCY CTK REPORTED CITING THE CZECH STATISTICS OFFICE CTK STATED THAT THE NUMBER OF PEOPLE SEEKING WORK INCREASED TO 148600 FROM 138581 AT THE END OF JUNE 9308130043 930813 WHO'S NEWS MARSH & MCLENNAN COS MARSH & MCLENNAN COS NEW YORK MITCHELL E BLASER 42 YEARS OLD WAS NAMED CHIEF PLANNING AND TECHNOLOGY OFFICER A NEWLY CREATED POST AT THE INSURANCE BROKERAGE UNIT OF THIS FINANCIAL SERVICES CONCERN HE WAS HEAD OF CORPORATE MANAGEMENT ANALYSIS AND BUDGETS OF THE UNIT MARSH & MCLENNAN INC 9308130042 930813 WHO'S NEWS BANKERS TRUST NEW YORK BANKERS TRUST NEW YORK NEW YORK STEPHEN FREIDHEIM AND JAMES TUCKER ARE JOINING THE COMPANY TO FORM AND MANAGE A NEW GLOBAL HIGHYIELD ASSET MANAGEMENT TEAM BEGINNING AUG 16 MR FREIDHEIM 29 YEARS OLD AND MR TUCKER 43 COME TO BANKERS TRUST FROM NOMURA SECURITIES CO'S CORPORATE RESEARCH AND ASSET MANAGEMENT UNIT WHERE THEY BOTH HAD EXPERIENCE IN HIGHYIELD OPERATIONS THE PAIR WILL REPORT TO WIN J NUEGER MANAGING DIRECTOR OF ACTIVE INVESTMENT STRATEGIES 9308130041 930813 TIME WARNER REDEMPTION NEW YORK TIME WARNER INC SAID ITS WARNER COMMUNICATIONS INC SUBSIDIARY CALLED FOR REDEMPTION ON SEPT 10 OF ALL 138 MILLION OF 11 DEBENTURES DUE 1999 THE DEBENTURES ORIGINALLY ISSUED BY LORIMAR TELEPICTURES CORP WILL BE REDEEMED AT 1033 OF PRINCIPAL PLUS ACCRUED INTEREST THE MEDIA AND ENTERTAINMENT COMPANY SAID 9308130040 930813 HARRIS CORP GETS CONTRACT MELBOURNE FLA HARRIS CORP SAID IT WON A 43 MILLION CONTRACT TO PROVIDE AVIONICS TEST SYSTEMS FOR ANTISUBMARINE HELICOPTERS IN THE UNITED KINGDOM'S NAVY THE FIVEYEAR CONTRACT GRANTED BY SERCO LTD A BRITISH MILITARY CONTRACTOR CALLS FOR THE HARRIS GOVERNMENT AEROSPACE SYSTEMS DIVISION TO DESIGN DEVELOP AND MAKE 14 AUTOMATIC TEST SYSTEMS FOR THE ROYAL NAVY'S EH101 MERLIN HELICOPTERS HARRIS MAKES ELECTRONIC AND COMMUNICATIONS SYSTEMS 9308130039 930813 CRAY RESEARCH STOCK BUYBACK EAGAN MINN CRAY RESEARCH INC SAID IT WILL RESUME BUYING BACK ITS COMMON STOCK UNDER AN EXISTING PROGRAM TO REPURCHASE AS MANY AS 15 MILLION SHARES THE SUPERCOMPUTER MAKER SAID IT HAS ACQUIRED 925000 SHARES SINCE STARTING THE PROGRAM IN JANUARY 1992 9308130038 930813 BUSINESS BRIEF MINERALS TECHNOLOGIES INC JOINT VENTURE IS FORMED WITH COMPANY IN FINLAND MINERALS TECHNOLOGIES INC ANNOUNCED A JOINT VENTURE WITH PARTEK CORP FINLAND TO PRODUCE PRECIPITATED CALCIUM CARBONATE IN THE NORDIC COUNTRIES AND EASTERN EUROPE SPECIALTY MINERALS A MINERALS TECHNOLOGIES UNIT WILL HOLD 70 OF THE JOINT VENTURE TO BE KNOWN AS OY NORDCARB AB WHICH WILL PRODUCE AND SELL PRECIPITATED CALCIUM CARBONATE IN THE NORDIC COUNTRIES BALTIC STATES AND COMMONWEALTH OF INDEPENDENT STATES THE PRODUCT IS USED IN PAPERFILLING AND PAPERCOATING APPLICATIONS MINERALS TECHNOLOGIES PRODUCES AND MARKETS SPECIALTY MINERALS MINERALBASED AND SYNTHETIC MINERAL PRODUCTS PARTEK IS AN INTERNATIONAL INDUSTRIAL GROUP OPERATING IN THE FIELDS OF MINERALS BUILDING PRODUCTS AND RELATED TECHNOLOGY 9308130037 930813 BUSINESS BRIEF BRITISH GAS PLC INTEREST OF 14 IN OIL FIELD SOLD TO LOUISIANA LAND UNIT BRITISH GAS EXPLORATION AND PRODUCTION LTD A UNIT OF BRITISH GAS PLC AGREED TO SELL ITS 14 WORKING INTEREST IN THE UK NORTH SEA BLOCK 16/17 TO LL&E UK LTD A UNIT OF LOUISIANA LAND & EXPLORATION CO FOR 232 MILLION BRITISH GAS SAID THE SALE IS PART OF THE ONGOING RATIONALIZATION OF THE COMPANY'S UK NORTH SEA PORTFOLIO BLOCK 16/17 KNOWN AS THE TBLOCK IS IN THE CENTRAL SECTOR OF THE NORTH SEA AND CONTAINS THE TIFFANY AND TONI OIL FIELDS BOTH UNDER DEVELOPMENT THE POSSIBLE DEVELOPMENT OF TWO SMALLER FIELDS IN THE BLOCK IS UNDER REVIEW BRITISH GAS SAID THE TRANSACTION TOOK EFFECT JULY 1 SUBJECT TO THE PREEMPTION RIGHTS OF PARTNERS AND FINAL UK GOVERNMENT APPROVAL THE REMAINING 86 EQUITY IN THE BLOCK IS HELD BY OPERATOR AGIP UK LTD A UNIT OF AGIP SPA OF ITALY WITH 4748 FINA EXPLORATION LTD A UNIT OF PETROFINA OF BELGIUM WITH 30 AND MURPHY PETROLEUM LTD WITH 852 9308130035 930813 BUSINESS BRIEF ROYAL INSURANCE HOLDINGS PLC PRETAX PROFIT OF 765 MILLION REPORTED FOR THE FIRST HALF BRITAIN'S ROYAL INSURANCE HOLDINGS PLC POSTED A FIRSTHALF PRETAX PROFIT OF 52 MILLION 765 MILLION COMPARED WITH A LOSS A YEAR BEFORE AS UK UNDERWRITING LOSSES WERE CUT TO 22 MILLION FROM 172 MILLION THE PROFIT WAS ABOUT IN THE MIDDLE OF ANALYSTS' FORECASTS THE PERSHARE PROFIT WAS 93 PENCE COMPARED WITH THE LOSS OF 183 PENCE A SHARE A YEAR AGO ROYAL SAID IT WILL PAY AN INTERIM DIVIDEND OF 250 PENCE A SHARE THE COMPANY HAD SAID IN MAY THAT IT INTENDED TO RAISE THE INTERIM PERSHARE DIVIDEND TO NO LESS THAN 250 PENCE FROM 200 PENCE A YEAR BEFORE ROYAL MADE THE PREDICTION TO SUPPORT A 404 MILLION RIGHTS ISSUE OF NEW SHARES SOME STOCK MARKET ANALYSTS HOWEVER HAD EXPECTED ROYAL TO SURPRISE INVESTORS WITH A 275PENCE PAYMENT NET PROFIT ATTRIBUTABLE TO HOLDERS WAS 50 MILLION IN THE FIRST HALF COMPARED WITH A 93 MILLION LOSS A YEAR AGO 9308130034 930813 COMMODITIES GOLD PRICES DECLINE FOR THIRD STRAIGHT SESSION AS TRADERS SAY COMMODITY FUNDS ARE SELLING BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GOLD FUTURES PRICES FELL FOR THE THIRD CONSECUTIVE DAY DROPPING 8 AN OUNCE IN HECTIC MOSTLY TECHNICAL TRADING IN NEW YORK TRADERS SAID SELLING BY NEW YORKBASED COMMODITY FUNDS WAS CHIEFLY RESPONSIBLE FOR THE DECLINE THEY SAID J ARON THE CURRENCY AND COMMODITYTRADING DIVISION OF GOLDMAN SACHS & CO ALSO WAS A BIG SELLER FOR THE PAST TWO TRADING SESSIONS THE COMPANY DECLINED TO COMMENT ALSO FUELING THE DECLINE IN GOLD A TRADITIONAL HEDGE AGAINST INFLATION WERE WEAK PRODUCERPRICE INFLATION DATA FOR JULY WHICH SHOWED THAT US PRODUCER PRICES OF FINISHED GOODS FELL A SEASONALLY ADJUSTED 02 FOR THE MONTH OR AN ANNUALIZED 19 COMPOUNDED RATE OF DECLINE ADDITIONALLY THE WIDELY FOLLOWED COMMODITY RESEARCH BUREAU INDEX OF 21 FUTURES CONTRACTS RETREATED SHARPLY YESTERDAY UNDERMINING GOLD PRICES TRADERS SAID TRADERS SAID THIS WEEK APPEARS TO BE A CRITICAL TESTING PERIOD FOR THE YELLOW METAL THE DECEMBER CONTRACT HAS PLUNGED 1610 SINCE MONDAY'S CLOSE YET EARLIER THIS WEEK SOME ANALYSTS HAD PREDICTED THAT GOLD WOULD STABILIZE AT 375 AND THEN AGAIN FLIRT WITH 400 AFTER A 22 SINGLEDAY DROP ON AUG 5 IN FACT DECEMBER GOLD FUTURES HAVE RETRACED 43 FROM THEIR PEAKTRADING LEVEL OF 414 ON AUG 2 THE MARKET IS STILL SUFFERING AFTERSHOCKS FOLLOWING LAST THURSDAY'S DROP THE LARGEST ONEDAY DROP IN SEVEN YEARS SAID BERNARD SAVAIKO A SENIOR COMMODITY ANALYST WITH PAINEWEBBER IN NEW YORK THE DECEMBER CONTRACT HAS GIVEN BACK MORE THAN HALF OF ITS GAINS SINCE THE MARCH 1993 LOWS OF 33170 HE SAID JEFFREY CHRISTIAN MANAGER OF CPM GROUP A PRECIOUS METAL CONSULTANCY IN NEW YORK ADDED WE'VE SEEN A MAJOR BOUT OF PROFITTAKING AND SHORTSELLING BY NORTH AMERICAN COMMODITY FUNDS AND TRADING COMPANIES COMMODITY FUNDS ARE MANAGED POOLS OF INVESTORS' MONEY BUT WHAT WE HAVEN'T SEEN IS ANY CENTRAL BANK GOLD SALES TO SPEAK OF DESPITE THE RUMORS ABOUT THE BANK OF FRANCE UNLOADING GOLD RESERVES TO DEFEND THE FRANC WE ALSO HAVEN'T SEEN A LOT OF FORWARD SELLING BY PRODUCERS HE SAID GOLD PRODUCERS OFTEN SELL UNDERGROUND INVENTORY FORWARD TO LOCK IN HIGHER PRICES ANALYSTS SEE GOLD FINDING SUPPORT IN THE 365 TO 375 LEVEL SHOULD THESE LEVELS FAIL TO BUOY THE METAL A MAJOR DOWNSIDE MOVE IS POSSIBLE THEY SAY I'M LOOKING FOR GOLD TO STABILIZE IN THE MID360S SAID GEORGE MILLINGSTANLEY CHIEF GOLD ANALYST FOR LEHMAN BROTHERS IN NEW YORK THIS SEEMS TO BE A REASONABLE LEVEL FOR GOLD HE SAID CITING RELATIVELY STRONG DEMAND FROM JEWELERS AND OTHER INDUSTRIAL CONSUMERS A LACK OF ROBUST INVESTMENT DEMAND FOR GOLD PARTICULARLY IN EUROPE IS KEEPING DOWNWARD PRESSURE ON THE METAL HE ADDED MR CHRISTIAN THE CPM GROUP ANALYST POINTS OUT THAT AUGUST TENDS TO BE THE CRUELEST MONTH FOR GOLD A TIME WHEN JEWELERS IN EUROPE AND NORTH AMERICA CLOSE FOR SUMMER VACATION GOLD PRICES ARE TRADITIONALLY WEAKER IN AUGUST THAN ANY OTHER MONTH HE SAID IN OTHER COMMODITY MARKETS YESTERDAY GRAINS & SOYBEANS A PLUNGE IN THE PRICE OF SOYBEAN FUTURES CONTRACTS DRAGGED DOWN CORN AND WHEAT FUTURES PRICES DESPITE AN AGRICULTURE DEPARTMENT FORECAST ON WEDNESDAY OF UNUSUALLY TIGHT SOYBEAN SUPPLIES BY AUTUMN 1994 COMMODITY FUND MANAGERS WERE HEAVY SELLERS OF SOYBEAN FUTURES CONTRACTS YESTERDAY AT THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR AUGUST DELIVERY DROPPED 2425 CENTS A BUSHEL TO SETTLE AT 655 A BUSHEL COMMODITY FUND TRADERS WERE SPOOKED BY THE GOVERNMENT'S FORECAST FOR NEARRECORD SOYBEAN YIELDS IN ILLINOIS INDIANA AND OHIO PRICES OF CORN FUTURES CONTRACTS OPENED HIGHER IN THE WAKE OF THE AGRICULTURE DEPARTMENT'S DECISION TO CUT ITS MONTHLY US HARVEST FORECAST BY 54 TO 742 BILLION BUSHELS BUT THE CORN MARKET EVENTUALLY WAS OVERWHELMED BY THE SOYBEAN PRICE PLUNGE WHEAT PRICES ALSO WERE WEAKENED BY SWELLING FORECASTS OF THE WHEAT HARVEST IN CHINA US OFFICIALS RECENTLY RAISED THEIR CHINESE WHEATCROP FORECAST BY NINE MILLION METRIC TONS TO 105 MILLION METRIC TONS ENERGY PETROLEUM FUTURES WERE SHARPLY HIGHER IN HEAVY TRADING IN WHAT WAS DESCRIBED AS A TECHNICALLY DRIVEN MARKET THE GASOLINE RALLY CONTINUED WITH THE SEPTEMBER CONTRACT RISING 06 CENT A GALLON TO 5638 CENTS BUT HEATING OIL FUTURES ROSE EVEN MORE AFTER BREAKING THROUGH IMPORTANT RESISTANCE POINTS SEPTEMBER HEATING OIL WAS UP 118 CENTS A GALLON TO SETTLE AT 5275 CENTS CRUDE OIL ALSO BROKE THE PSYCHOLOGICALLY IMPORTANT LEVEL OF 18 A BARREL WITH THE SEPTEMBER CONTRACT SETTLING 30 CENTS HIGHER AT 1818 ACCORDING TO THE DOW JONES INTERNATIONAL PETROLEUM REPORT PRICES BEGAN YESTERDAY'S RUNUP ON THE NEW YORK MERCANTILE EXCHANGE AFTER A REPORT THAT THE BOSNIAN SERB LEADER HAD THREATENED RETALIATION AGAINST THE WEST IF IT INTERVENED MILITARILY IN THE BOSNIAN WAR PETROLEUM PRODUCT PRICES ALSO WERE HELPED BY REPORTS OF MORE US REFINERY PROBLEMS 9308130033 930813 TECHNOLOGY BRISTOLMYERS SET TO END TAXOL JOB HAUSER DISCLOSES BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL HAUSER CHEMICAL RESEARCH INC BOULDER COLO 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 THE MOVE WAS A BLOW FOR HAUSER WHOSE THREEYEAR CONTRACT TO SUPPLY THE CANCERFIGHTING DRUG DERIVED FROM THE PACIFIC YEW TREE HAD BEEN VALUED AT MORE THAN 100 MILLION AND HAS ACCOUNTED FOR MORE THAN 90 OF HAUSER'S BUSINESS IT'S A MAJOR DEAL FOR US NO QUESTION ABOUT IT SAID DEAN P STULL HAUSER'S CHIEF EXECUTIVE OFFICER HAUSER'S ANNOUNCEMENT CAME AFTER THE CLOSE OF TRADING ON WALL STREET THURSDAY AND ITS STOCK CLOSED AT 1450 A SHARE DOWN 1 IN NATIONAL OVERTHECOUNTER TRADING BUT PAST THREATS TO HAUSER'S TAXOL BUSINESS HAVE BEEN DEVASTATING ON FEB 1 THE VALUE OF HAUSER'S STOCK PLUNGED 29 TO 14 FROM 1975 AFTER THE FEDERAL GOVERNMENT ANNOUNCED THAT IT WOULD ELIMINATE HARVESTING OF YEW BARK ON FEDERAL LANDS FOLLOWING PROTESTS BY ENVIRONMENTALISTS AT THAT TIME HAUSER INDICATED THAT THE BAN WOULDN'T IMPACT ITS CONTRACT WITH BRISTOLMYERS EVEN THOUGH THE NEW YORK PHARMACEUTICAL CONCERN HAD INDICATED THAT IT WAS MAKING FASTERTHANEXPECTED PROGRESS ON PRODUCING A SEMISYNTHETIC VERSION OF THE DRUG WHICH WAS APPROVED IN DECEMBER BY REGULATORS AS A TREATMENT FOR OVARIAN CANCER MOST INDUSTRY ANALYSTS EXPECTED THE CONVERSION TO SEMISYNTHETIC PRODUCTION TO BE GRADUAL AND THAT HAUSER'S CONTRACT WOULD BE RENEWED IT DOES COME AS A SURPRISE SAID TED GOINS AN ANALYST WITH BRANCH CABELL IN RICHMOND VA WE THOUGHT THE CONTRACT WOULD COME BACK IN FRANKLY I DIDN'T EXPECT IT AT ALL SAID MR STULL WHO SAID HE WAS IN NEW JERSEY MEETING WITH BRISTOLMYERS EXECUTIVES WHEN THE NOTIFICATION CAME VIA OVERNIGHT MAIL TO HIS COLORADO OFFICE BRISTOLMYERS EXECUTIVES COULDN'T BE REACHED FOR COMMENT BUT MR STULL SAID THE LETTER INDICATED THAT THE CONTRACT WON'T BE RENEWED BECAUSE THE COMPANY IS MOVING TOWARD SEMISYNTHETIC PRODUCTION OF TAXOL MR STULL SAID HAUSER REMAINS IN DISCUSSIONS WITH BRISTOLMYERS REGARDING A NUMBER OF TAXOLRELATED PROJECTS AND POSSIBLE SUPPLY RELATIONSHIPS BUT HE DECLINED TO DISCUSS DETAILS IN 1992 HAUSER DOUBLED THE CAPACITY OF ITS NEW TAXOLPRODUCING PLANT IN COLORADO MEANWHILE THE COMPANY'S NET INCOME FOR THE FISCAL YEAR ENDED APRIL 30 SOARED TO 81 MILLION OR 80 CENTS A SHARE FROM 3 MILLION OR 31 CENTS A SHARE THE PREVIOUS FISCAL YEAR REVENUE ROSE TO 593 MILLION FROM 256 MILLION MR STULL SAID THAT HAUSER'S CURRENT FISCAL YEAR WHICH ENDS ON APRIL 30 1994 WON'T BE AFFECTED BY BRISTOLMYERS' MOVE BUT THAT FISCAL 1995 WILL BE IMPACTED SIGNIFICANTLY HE DECLINED TO PROVIDE ANY ESTIMATES MR STULL ADDED THAT HAUSER WILL MARKET TAXOLRELATED PRODUCTS TO OTHER POTENTIAL CUSTOMERS CONTINUE DEVELOPING OTHER CANCERFIGHTING COMPOUNDS AND EXPAND ITS OTHER BUSINESSES SUCH AS PROVIDING FLAVOR EXTRACTS TO THE FOOD AND BEVERAGE INDUSTRY STILL MR STULL SAID I THINK IT WILL TAKE A COUPLE OF YEARS TO TOTALLY RECOVER 9308130032 930813 PAPUA NEW GUINEA SEEKS HIGHER STAKE IN RTZ'S LIHIR MINE SPECIAL TO THE WALL STREET JOURNAL LONDON RTZ CORP OF BRITAIN SAID IT IS SURPRISED BY THE PAPUA NEW GUINEA GOVERNMENT'S ANNOUNCEMENT THAT IT WILL TAKE A 50 INTEREST IN THE LIHIR GOLD MINE PREVIOUSLY THE GOVERNMENT PLANNED TO TAKE A 30 INTEREST MINING AND PETROLEUM MINISTER MASKET IANGALIO SAID THE GOVERNMENT WILL TAKE 50 OF THE PROJECT BECAUSE IT IS FED UP WITH RTZ STALLING OVER DEVELOPMENT OF LIHIR RTZ SAID SEVERAL ASPECTS OF THIS STATEMENT CAME AS A CONSIDERABLE SURPRISE IT SAID IT WILL BE CONSIDERING ITS POSITION WITH ITS PARTNERS RTZ IS SELLING DOWN ITS STAKE IN LIHIR TO 40 ITS CURRENT PARTNER NIUGINI MINING LTD A 57OWNED UNIT OF BATTLE MOUNTAIN GOLD CO OF THE US WILL BUY A FURTHER 16 OF LIHIR FROM RTZ TO LIFT ITS STAKE TO 30 WHILE RTZ WILL ALSO SELL AN INDIRECT 20 OF ITS STAKE TO VENEZUELAN GOLDFIELDS LTD OF CANADA UNDER EXISTING PLANS OF THE PARTNER THE PAPUA NEW GUINEA GOVERNMENT WOULD HAVE 30 OF LIHIR 9308130031 930813 TRADE ACCORD'S SIDE TALKS STALL OVER SANCTIONS CANADA CITES AN IMPASSE' MEXICAN OFFICIAL WARNS ABOUT BREAKING POINT' BY ASRA Q NOMANI AND JOHN URQUHART STAFF REPORTERS OF THE WALL STREET JOURNAL NEGOTIATIONS OVER SIDE DEALS TO THE NORTH AMERICAN FREE TRADE AGREEMENT STALLED SPELLING TROUBLE FOR A PACT THAT ALREADY FACES SERIOUS POLITICAL PROBLEMS TRADE NEGOTIATORS FOR THE US CANADA AND MEXICO STILL COULD PULL OFF A DEAL BUT LATE YESTERDAY CANADIAN PRIME MINISTER KIM CAMPBELL SAID THE TALKS WERE AT AN IMPASSE AT THE SAME TIME AN INTERNAL MEMO BY MEXICAN COMMERCE MINISTER JAIME SERRA PUCHE SUGGESTED THE TALKS COULD REACH A BREAKING POINT AND US OFFICIALS SAID SEVERAL ISSUES CONTINUE TO BLOCK EFFORTS TO CONCLUDE THE TALKS THE MAIN STUMBLING BLOCK IS WHETHER A MEMBER COUNTRY COULD IMPOSE TRADE SANCTIONS ON OTHER COUNTRIES THAT DON'T ENFORCE ENVIRONMENTAL AND LABOR STANDARDS THAT THE PACT WOULD ESTABLISH CANADIAN OFFICIALS HAVE BALKED AT SUCH A PLAN PROPOSING INSTEAD THAT CANADA BE SUBJECTED ONLY TO FINES IF IT IS FOUND TO VIOLATE TERMS OF THE FREETRADE AGREEMENT MS CAMPBELL WOULDN'T DISCUSS DIFFERENCES BETWEEN THE COUNTRIES BUT SAID AT THE MOMENT WE'RE JUST HOLDING FIRM THERE MAY BE A COMPROMISE THAT CAN BE WORKED OUT THAT COULD RESOLVE THE ISSUE FOR THEIR PART MEXICAN OFFICIALS OBJECTED YESTERDAY TO ONE POSSIBLE COMPROMISE THEY SAY HAS BEEN SUGGESTED IN THE TALKS ALLOWING COUNTRIES TO SUE EACH OTHER TO FORCE COMPLIANCE WITH THE ENVIRONMENTAL AND LABOR STANDARDS THE MEXICAN COMMERCE MINISTRY SENT OUT AN UNUSUAL NEWS BULLETIN LATE WEDNESDAY SAYING SUCH A SCHEME WOULD VIOLATE MEXICO'S NATIONAL SOVEREIGNTY IN THE INTERNAL MEMO COMMERCE MINISTER SERRA PUCHE SAID THAT IF THE US OR CANADA INSIST ON ESTABLISHING A RIGHT TO SUE IT WOULD BE A BREAKING POINT FOR NEGOTIATIONS THE PRETENSION OF THE UNITED STATES AND CANADA TO INCLUDE THE POSSIBILITY OF SUING MEXICO IN ITS OWN COURTS ATTACKS THE CONCEPT OF SOVEREIGNTY AND IS AS SUCH INADMISSIBLE THE DOCUMENT SAID IT IS IN FACT A BREAKING POINT TROUBLES WITH THE NEGOTIATIONS COULD PREVENT THE CLINTON ADMINISTRATION FROM FULFILLING ITS PLEDGE TO PRESENT CONGRESS WITH A NAFTA PACKAGE THAT INCLUDES ENVIRONMENTAL AND LABOR SAFEGUARDS WHAT'S MORE THE TROUBLE OFFERS NAFTA CRITICS ANOTHER OPPORTUNITY TO ATTACK THE PACT THE IMPASSE IS AN INDICATION THAT THERE'S JUST NO WAY TO PATCH UP THIS BAD DEAL SAID LORI WALLACH OF WASHINGTONBASED PUBLIC CITIZEN THE ADVOCACY GROUP HAS BEEN CRITICAL OF NAFTA JIM JONTZ DIRECTOR OF THE CITIZENS TRADE CAMPAIGN AN UMBRELLA GROUP OF NAFTA CRITICS THAT INCLUDES PUBLIC CITIZEN SAID THE CLINTON ADMINISTRATION IS IN AN AWKWARD POSITION THEY TOLD THE CONGRESS THAT THEY WOULD TAKE CARE OF CERTAIN PROBLEMS AND THEY'RE NOT GETTING MUCH RESPONSE THE SITUATION ILLUSTRATES THE PROBLEMS WITH THE ENTIRE AGREEMENT THE ADMINISTRATION HOPED TO HAVE THE SIDE AGREEMENTS TIED UP BY NOW SO THAT IT COULD START SELLING THE PACT TO CONGRESS AND THE US PUBLIC TO MEET A JAN 1 SCHEDULED STARTING DATE FOR NAFTA ADMINISTRATION OFFICIALS NEED TO GET REQUIRED CONGRESSIONAL APPROVAL BY AROUND OCTOBER MEANING THEY HAVE ABOUT TWO MONTHS TO TURN AROUND A SKEPTICAL CONGRESS AND US CITIZENRY ADMINISTRATION OFFICIALS HAVE BEEN HOLDING MEETINGS THIS WEEK TRYING TO FIGURE OUT HOW TO JUGGLE THE MARKETING OF NAFTA ALONG WITH THEIR CAMPAIGN TO PUSH LEGISLATION FOR HEALTHCARE REVISION BUT THE WHITE HOUSE WHICH FEARS ALIENATING VOTERS AND INTEREST GROUPS WORRIED ABOUT POSSIBLE LOSS OF US JOBS TO MEXICO APPEARS DIVIDED ON HOW HARD TO PUSH THE TRADE AGREEMENT IT DOESN'T WANT TO ANGER LABOR UNIONS FOR INSTANCE WHOSE SUPPORT IT WILL NEED IN THE COMING HEALTHCARE BATTLE YESTERDAY'S NEGATIVE PUBLIC COMMENTS IN MEXICO AND CANADA COULD PROVE TO BE POSTURING BY TWO GOVERNMENTS ALSO SENSITIVE TO THEIR POLITICAL CONSTITUENCIES THE MEXICAN GOVERNMENT'S REMARKS WERE SURPRISING BECAUSE THAT COUNTRY DESPERATELY WANTS NAFTA AS A WAY OF SOLIDIFYING THE ECONOMIC REFORMS OF PRESIDENT CARLOS SALINAS DE GORTARI BUT MR SALINAS ALSO NEEDS TO SHOW HE CAN STAND UP TO THE US AND CANADA THE INTERNAL MEMO FROM COMMERCE MINISTER SERRA PUCHE DATED TUESDAY NIGHT TELLS MEXICAN NEGOTIATORS TO ABSOLUTELY REJECT THE OPTION OF INTERVENTION IN MEXICAN COURTS TO SETTLE ENVIRONMENTAL DISPUTES IN THE MEMO HE INSISTS SUCH INTERVENTION WOULD VIOLATE THE MEXICAN CONSTITUTION REACTION TO THE NEGOTIATORS' DIFFICULTY ON MEXICO'S JITTERY STOCK EXCHANGE WAS SWIFT THE KEY STOCK INDEX FELL 172 ON THE NEWS THAT THE PARALLEL PACTS WERE TROUBLED CANADIAN PRIME MINISTER CAMPBELL IS IN THE DELICATE POSITION OF HAVING TO PLACATE POLITICAL AND BUSINESS OFFICIALS WHO CONSIDER SANCTIONS UNNECESSARY AND AN INFRINGEMENT OF CANADA'S SOVEREIGNTY MS CAMPBELL ARGUED YESTERDAY THAT SANCTIONS AREN'T NECESSARY BECAUSE CANADA'S LEGAL SYSTEM ALREADY PROVIDES FOR ENFORCEMENT OF ENVIRONMENTAL AND LABOR STANDARDS CANADIAN BUSINESS LEADERS WERE QUICK TO SUPPORT MS CAMPBELL'S STANCE ARGUING THAT THE DISPUTE COULD BE SETTLED SOON IF THE US CONFINES ITS DEMAND FOR NEW ENFORCEMENT PROCEDURES TO MEXICO THOMAS D'AQUINO PRESIDENT OF THE BUSINESS COUNCIL OF NATIONAL ISSUES WHICH REPRESENTS THE CHIEF EXECUTIVE OFFICERS OF CANADA'S 150 LARGEST COMPANIES SAID IT WOULD BE BAD PUBLIC POLICY FOR CANADA TO ACCEPT SANCTIONS DIANNE SOLIS CONTRIBUTED TO THIS ARTICLE 9308130030 930813 BUSINESS BRIEF COHERENT INC SALE OF TWO UNITS TO RESULT IN CHARGE FOR FISCAL PERIOD COHERENT INC SAID THE SALE OF TWO OF ITS BUSINESS UNITS WILL RESULT IN A ONETIME CHARGE OF 25 MILLION OR ABOUT 25 CENTS A SHARE FOR ITS FISCAL FOURTH QUARTER ANALYSTS HAD ESTIMATED SANTA CLARA CALIFBASED COHERENT WOULD EARN ABOUT 18 CENTS A SHARE FOR THE QUARTER ENDING SEPT 25 INCLUDING THE CHARGE FOR DISCONTINUED OPERATIONS SUGGESTS THE COMPANY WILL POST A LOSS OF SEVEN CENTS A SHARE FOR THE QUARTER COHERENT A MEDICAL INSTRUMENTS MANUFACTURER SAID THE CHARGE FOR THE QUARTER ENDING SEPT 25 WAS CAUSED PRIMARILY BY THE SALE OF ITS COHERENT GENERAL INC UNIT AND COHERENT HULL INDUSTRIAL MARKING OPERATIONS WHICH ACCOUNTED FOR ABOUT 9 OF THE COMPANY'S TOTAL REVENUE IN THE YEARAGO FOURTH QUARTER COHERENT HAD NET INCOME OF 12 MILLION OR 13 CENTS A SHARE ON REVENUE OF 548 MILLION IN NATIONAL OVERTHECOUNTER TRADING COHERENT CLOSED AT 1550 UP 25 CENTS 9308130029 930813 BUSINESS BRIEF SKANSKA AB COLOMBIA PROJECT GENERATES AN ORDER OF 1883 MILLION SKANSKA AB SAID IT RECEIVED AN ORDER VALUED AT 152 BILLION KRONOR 1883 MILLION AS PART OF A 19BILLIONKRONA HYDROELECTRICPLANT PROJECT IN COLOMBIA SKANSKA A MAJOR SWEDISH CONSTRUCTION GROUP SAID CONCIVILES SA OF COLOMBIA AND FOUNDATION CO OF CANADA WILL ALSO PARTICIPATE SKANSKA'S SHARE AMOUNTS TO 80 OF THE ORDER'S TOTAL IT SAID CALLED URRA 1 THE PLANT WILL BE BUILT IN THE PROVINCE OF CORDOBA NEAR THE CARIBBEAN SEA THE SWEDISH GROUP WON THE ORDER TO BUILD THE PLANT IN 1984 BUT THE PROJECT WAS DELAYED DUE TO DIFFICULTIES IN OBTAINING FINANCING SKANSKA SAID TURBINES AND GENERATORS FOR THE PLANT WHICH WILL HAVE A CAPACITY OF 340 MEGAWATTS AND AN ESTIMATED YEARLY PRODUCTION OF 1420 GIGAWATTS ARE NOT INCLUDED IN SKANSKA'S ORDERS THEY WILL BE SUPPLIED FROM RUSSIAN SOURCES IT SAID WORK ON THE PLANT IS SCHEDULED TO BEGIN IN SEPTEMBER 9308130028 930813 EXSOVIET STATES BORROWED LESS IN FIRST PERIOD WESTERN BANKS' CLAIMS FELL BY 800 MILLION DESPITE CREDIT RISE REPORT SAYS SPECIAL TO THE WALL STREET JOURNAL BASEL WESTERN BANK CLAIMS ON THE FORMER SOVIET UNION FELL BY 800 MILLION IN THE FIRST QUARTER OF 1993 THE BANK FOR INTERNATIONAL SETTLEMENTS SAID IN ITS LATEST REPORT ON WORLD FINANCIAL DEVELOPMENTS THE BIS REPORT WHICH COMPILES STATISTICS FROM BANKS IN THE INDUSTRIALIZED COUNTRIES SAID THE DECLINE OCCURRED DESPITE AN INCREASE IN GUARANTEED CREDIT BY BANKS IN GERMANY AND A NEW DEBT DEFERRAL AGREEMENT IN MARCH THE DECLINE IN BORROWING FROM THE BANKS FOLLOWED A 100 MILLION DROP IN THE FOURTH QUARTER OF 1992 IN THE PRIOR THREE QUARTERS OF 1992 BORROWING HAD EXPANDED AT THE END OF THE FIRST QUARTER OUTSTANDING BORROWING BY THE SUCCESSOR REPUBLICS OF THE SOVIET UNION STOOD AT 584 BILLION REPUBLICS' DEPOSITS AT THE BANKS ROSE BY 15 BILLION IN THE FIRST QUARTER A SLOWER PACE OF GROWTH THAN IN THE THIRD AND FOURTH QUARTERS OF 1992 NEW LENDING TO THE MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES SLIPPED TO 11 BILLION AFTER EXPANSION OF 62 BILLION IN THE FOURTH QUARTER 1992 MEANWHILE FOR THE FOURTH QUARTER 1992 AND FIRST QUARTER 1993 TOGETHER NEW LENDING TO CHINA SLOWED DOWN MARKEDLY AND THERE WAS A SIGNIFICANT DRAWDOWN OF DEPOSITS BY THAT COUNTRY THE REPORT SAID GENERALLY THE REPORT SAID THE FIRST QUARTER SAW A FURTHER CONTRACTION IN INTERNATIONAL INTERBANK ASSETS WHILE LARGESCALE REPAYMENTS OF EQUITYRELATED PAPER WEIGHED ON NET GROWTH IN THE VOLUME OF BONDS OUTSTANDING FURTHER BANK CREDIT SHOWED SOME SIGNS OF REVIVAL DESPITE STAGNATION OUTSIDE THE INDUSTRIAL REPORTING AREA NET NEW INTERNATIONAL BANK LENDING ROSE 35 BILLION IN THE QUARTER AFTER A RISE OF 15 BILLION IN THE FOURTH QUARTER AT THE END OF MARCH OUTSTANDING BANK LENDING STOOD AT 371 TRILLION BANKS ALSO STEPPED UP PURCHASES OF SECURITIES REFLECTING A PHENOMENON ALREADY IN EVIDENCE IN SOME MAJOR DOMESTIC MARKETS THE REPORT SAID AMONG OTHER FIRSTQUARTER HIGHLIGHTS IN THE BIS REPORT LOWER DEMAND FOR DOLLARS FOR HEDGING OR SPECULATION AND CURTAILMENT OF INTERBANK EXPOSURES LED TO A MARKED REDUCTION IN THE DOLLAR POSITIONS OF BANKS OUTSIDE THE US NONRESIDENTS CONDUCTED MAJOR WITHDRAWALS OF SWISS FRANC DEPOSITS FROM SWISS BANKS THIS WAS MATCHED BY A REDUCTION IN DOMESTIC BANKS' EXTERNAL CLAIMS IN FOREIGN CURRENCIES EXTERNAL LIABILITIES OF BANKS IN JAPAN FELL BY 23 BILLION OR MORE THAN 60 OF THE COUNTRY'S ACCOUNT SURPLUS IN THE FIRST QUARTER THE REDUCTION STEMMED MAINLY FROM DECREASES IN FOREIGN CURRENCY DEPOSITS IN THE INTERNATIONAL INTERBANK MARKET THE DEVELOPMENT WAS INSTRUMENTAL IN THE DECLINE IN INTERNATIONAL BANKING BUSINESS RECORDED IN HONG KONG AND SINGAPORE ENTITIES IN JAPAN SWEDEN ITALY AND FINLAND MADE LARGESCALE REPAYMENTS ON THE LOCAL MARKETS OF FOREIGNCURRENCY LOANS MEANWHILE THE MAJOR PART OF NEW BANK CREDIT RAISED ABROAD BY RESIDENTS OF GERMANY THE US FRANCE AND JAPAN WAS DENOMINATED IN THEIR RESPECTIVE DOMESTIC CURRENCIES 9308130027 930813 DUPONT SETTLES LAWSUIT OVER FUNGICIDE FOR SMALL FRACTION OF DAMAGES SOUGHT BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL DUPONT CO SETTLED THE FIRST BENLATE FUNGICIDE DAMAGE SUIT AGAINST IT TO GO TO TRIAL FOR 4250000 A TINY FRACTION OF THE DAMAGES SOUGHT BY THE FOUR GROWERS WHO BROUGHT THE CASE DUPONT AND SOME WALL STREET ANALYSTS HAILED THE SETTLEMENT AS A VICTORY FOR THE BIG CHEMICAL COMPANY BUT DUPONT STILL FACES MORE THAN 400 OTHER BENLATE DAMAGE CASES IN STATE AND FEDERAL COURTS AROUND THE COUNTRY THE SETTLEMENT WAS REACHED LATE YESTERDAY AFTERNOON AS A 12MEMBER FEDERAL JURY IN COLUMBUS GA WAS NEARING THE END OF ITS SECOND DAY OF DELIBERATIONS THE PLAINTIFFS ORNAMENTAL PLANT GROWERS FROM GEORGIA ALABAMA MICHIGAN AND HAWAII HAD INITIALLY SOUGHT COMBINED COMPENSATORY AND PUNITIVE DAMAGES OF 148 MILLION THEY SUBSEQUENTLY BOOSTED THE AMOUNT OF DAMAGES SOUGHT TO 430 MILLION C NEAL POPE AN ATTORNEY FOR THE GROWERS WHO INITIATED SETTLEMENT DISCUSSIONS WITH DUPONT SAID WE'RE PLEASED THE CASE IS DISPOSED OF HE SAID A CONFIDENTIALITY AGREEMENT THAT WAS PART OF THE SETTLEMENT KEPT HIM FROM COMMENTING FURTHER INCLUDING HOW THE 4250000 WOULD BE DIVIDED AMONG THE FOUR GROWERS WALL STREET ANALYSTS SAID THE POSSIBILITY THAT THE FIRST BENLATE TRIAL MIGHT YIELD A VERDICT AGAINST DUPONT IN THE HUNDREDS OF MILLIONS OF DOLLARS HAD CAST A PALL OVER THE COMPANY'S STOCK IN RECENT MONTHS PAUL RAMAN AN ANALYST WITH SG WARBURG INC IN NEW YORK SAID THAT WHILE WALL STREET WOULD HAVE PREFERRED A CLEAR VERDICT IN DUPONT'S FAVOR THE SETTLEMENT WAS VERY VERY GOOD NEWS FOR DUPONT THE SETTLEMENT WAS ANNOUNCED AFTER THE CLOSE OF TRADING IN DUPONT'S SHARES ON THE NEW YORK STOCK EXCHANGE THE STOCK FINISHED THE DAY AT 46625 DOWN 50 CENTS DUPONT PULLED ITS BENLATE DF FUNGICIDE FROM THE MARKET IN 1991 AFTER WIDESPREAD CUSTOMER COMPLAINTS MOSTLY IN FLORIDA THE WILMINGTON DEL COMPANY PAID ABOUT 500 MILLION TO SETTLE NEARLY 2000 GROWER CLAIMS OF BENLATE DAMAGE IN 1991 AND 1992 BUT IT HALTED ALL CLAIMS PAYMENTS LAST NOVEMBER SAYING TESTS IT CONDUCTED SHOWED BENLATE DIDN'T DAMAGE PLANTS EDGAR S WOOLARD JR DUPONT'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN A NEWS BRIEFING YESTERDAY THAT THE SETTLEMENT WAS A VICTORY FOR DUPONT OUR EMPLOYEES AND OUR SCIENCE MR WOOLARD SAID THE PLAINTIFFS' WILLINGNESS TO SETTLE THE CASE REINFORCED DUPONT'S BELIEF THAT THERE IS NO EVIDENCE TO SUPPORT THE CLAIM THAT BENLATE HARMED CROPS THE PLAINTIFFS HAD ALLEGED THAT BENLATE DAMAGED PLANTS BECAUSE IT WAS CONTAMINATED WITH DUPONT'S ULTRAPOTENT SULFONYLUREA HERBICIDES BOTH BENLATE AND SULFONYLUREAS WERE MANUFACTURED AT A DUPONT PLANT IN BELLE WVA WHERE THE PLAINTIFFS ALLEGED THE CONTAMINATION HAD OCCURRED DURING THE FIVEWEEK TRIAL PLAINTIFFS' ATTORNEYS PRODUCED REAMS OF INTERNAL DUPONT DOCUMENTS THAT IMPLICATED BENLATE AS THE CAUSE OF PLANT DAMAGE DUPONT RESPONDED THAT THE DOCUMENTS WERE DRAFTED BY SCIENTISTS BEFORE THE COMPANY CONDUCTED DEFINITIVE BENLATE TESTS LAST SUMMER PLAINTIFFS' ATTORNEYS ALSO PRESENTED DOCUMENTS THAT APPEARED TO SUGGEST A COVERUP OF INCRIMINATING EVIDENCE ABOUT BENLATE DUPONT COUNTERED THAT LEGAL ADVICE WASN'T TAKEN AND PLAINTIFFS' EXPERTS SAID DUPONT DATA SHOWED THE COMPANY HAD DETECTED THAT BENLATE WAS CONTAMINATED WHILE DUPONT'S EXPERTS CLAIMED THE DATA SHOWED JUST THE OPPOSITE MR WOOLARD AND SOME HEALTHYLOOKING POTTED PLANTS WERE THE CENTERPIECE OF DUPONT'S DEFENSE MR WOOLARD'S TESTIMONY CONSISTED MOSTLY OF A DEFENSE OF THE INTEGRITY OF DUPONT AND ITS SCIENTISTS THE LUXURIANT PLANTS SOME OF WHICH HAD BEEN TREATED WITH BENLATE AND SOME WHICH HADN'T SPOKE FOR THEMSELVES MR WOOLARD SAID THE COMPANY AGREED TO SETTLE THE CASE PARTLY BECAUSE DUPONT WAS CONCERNED THAT US DISTRICT JUDGE J ROBERT ELLIOTT HAD KEPT THE COMPANY FROM ENTERING PLANT TEST RESULTS AND OTHER SCIENTIFIC EVIDENCE IT THOUGHT WAS CRUCIAL TO ITS DEFENSE MR WOOLARD ALSO SAID THERE WAS A HIGH PROBABILITY OF A RETRIAL OR APPEALS IN THE CASE REGARDLESS OF THE VERDICT WHICH WOULD HAVE ADDED TO DUPONT'S LEGAL BILL BESIDES HE ADDED YOU NEVER KNOW FOR SURE WHAT'S GOING ON IN THE JURY ROOM DURING DELIBERATIONS MR POPE THE PLAINTIFFS' ATTORNEY HAD COMPARED DUPONT TO A BULLY THAT NEEDED DISCIPLINING IN CLOSING ARGUMENTS TO THE JURY TUESDAY HE URGED THE SEVEN WOMEN AND FIVE MEN TO TAKE THEM TO THE WOODSHED WITH A HUGE DAMAGE AWARD DURING PRETRIAL HEARINGS JUDGE ELLIOTT HAD LEVIED A 1 MILLION CONTINGENT FINE AGAINST DUPONT HAVING CONCLUDED THAT THE COMPANY WAS INTENTIONALLY WITHHOLDING EVIDENCE FROM THE PLAINTIFFS AS PART OF THE SETTLEMENT DUPONT AND THE PLAINTIFFS AGREED TO PETITION THE JUDGE TO DROP THE FINE MR WOOLARD SAID THE GEORGIA SETTLEMENT DIDN'T SET A PRECEDENT FOR THE MORE THAN 400 OTHER BENLATE CASES PENDING AGAINST DUPONT WE'RE CONFIDENT THAT WHEN WE'RE ALLOWED TO PRESENT ALL OUR EVIDENCE WE WILL PREVAIL IN SUBSEQUENT CASES HE SAID 9308130026 930813 BUSINESS BRIEF NUWEST INDUSTRY INC LETTER OF COMMITMENT SIGNED FOR CREDIT LOANS NUWEST INDUSTRIES INC ENGLEWOOD COLO SAID AN UNIDENTIFIED MAJOR INTERNATIONAL FINANCIAL INSTITUTION HAS SIGNED A LETTER OF COMMITMENT TO PROVIDE IT WITH 60 MILLION IN LONGTERM LOANS AND REVOLVING CREDIT 40 MILLION OF WHICH WOULD BE USED TO REPAY SUBSTANTIALLY ALL OF THE FERTILIZER MANUFACTURER'S DEBT IN RETURN NUWEST WOULD ISSUE ITS NEW SENIOR LENDER WARRANTS TO PURCHASE 9 OF ITS FULLY DILUTED STOCK NUWEST ALSO SAID IT IS COMPLETING NEGOTIATIONS WITH CERTAIN INVESTORS FOR THE SALE OF 35 MILLION OF NEW JUNIOR SUBORDINATED SECURED DEBT AT 18 THE INVESTORS WOULD EXCHANGE 101 MILLION IN UNSECURED DEBT FOR NEW DEBT ALSO AT 18 THE INVESTORS WOULD RECEIVE WARRANTS TO PURCHASE 49 OF THE COMPANY'S FULLY DILUTED SHARES THE COMPANY SAID THE FINANCINGS ARE SUBJECT TO A NUMBER OF CONDITIONS NUWEST HAS BEEN STRUGGLING TO AVOID FILING FOR BANKRUPTCYLAW PROTECTION YESTERDAY NUWEST REPORTED A NET LOSS OF 46 MILLION OR 52 CENTS A SHARE FOR THE FISCAL YEAR ENDED JUNE 30 THAT COMPARES WITH A LOSS OF 42 MILLION OR 49 CENTS A SHARE POSTED A YEAR EARLIER REVENUE FELL 11 TO 873 MILLION FROM 981 MILLION 9308130025 930813 BUSINESS BRIEF TWA'S 2FOR1 FARES LEAD TO SIMILAR OFFERS FROM SEVERAL AIRLINES SEVERAL AIRLINES SAID THEY WILL AT LEAST PARTLY MATCH THE 2FOR1 TICKET SALE STARTED BY TRANS WORLD AIRLINES THE PROMOTION ANNOUNCED BY TWA AS PART OF ITS PLAN TO EMERGE FROM BANKRUPTCYLAW PROTECTION LETS A COMPANION FLY FREE WITH TRAVELERS WHO PURCHASE TICKETS FOR FALL AND WINTER TRAVEL BY THE END OF SATURDAY NORTHWEST AIRLINES A UNIT OF CLOSELY HELD WINGS HOLDINGS INC SAID IT IS MATCHING THE PROMOTION IN AREAS IN WHICH IT COMPETES WITH TWA BUT ONLY IN SOME FARE CATEGORIES USAIR A UNIT OF USAIR GROUP INC SAID IT WILL MATCH TWA IN MOST MARKETS CONTINENTAL AIRLINES SAID IT WILL MATCH ON COMPETING ROUTES BUT NOT TO EUROPE AMERICA WEST AIRLINES SAID IT WILL MATCH IN A FEW MARKETS WHERE IT COMPETES WITH TWA THE PHOENIXBASED CARRIER WHICH IS IN BANKRUPTCYCOURT PROCEEDINGS ADDED WE HOPE THAT THIS FARE SALE DOES NOT LEAD TO THE DESTRUCTIVE FARE LEVELS OF THE SUMMER OF 1992 UAL CORP'S UNITED AIRLINES SAID IT WILL MATCH THE OFFER ON ROUTES ANYWHERE IN THE CONTINENTAL US AMR CORP'S AMERICAN AIRLINES SAID IT WILL MATCH TWA'S MOVE ON DOMESTIC FLIGHTS ONLY IN COMPETING MARKETS EXCEPT CHICAGO AND DALLAS/FORT WORTH WHERE IT HAS HUBS AMERICAN ALSO SAID IT WILL MATCH THE INTERNATIONAL PORTION OF THE 2FOR1 DEAL TO EUROPE BUT NOT TO THE UNITED KINGDOM DELTA AIR LINES SAID IT IS STUDYING THE MOVE SEPARATELY TWA SAID IT WILL SELL ASSETS SUCH AS GATES JETWAYS AND BAGGAGE SYSTEMS AT LAMBERT FIELD IN ST LOUIS TO THE ST LOUIS AIRPORT AUTHORITY FOR 647 MILLION THEN LEASE THEM BACK THE CITY OF ST LOUIS ALSO WAIVED A 53 MILLION CLAIM AGAINST TWA FOR BACK LEASE PAYMENTS AT THE SAME TIME TWA SAID IT WILL MOVE ITS HEADQUARTERS AND 150 TO 200 JOBS FROM MOUNT KISCO NY TO THE ST LOUIS AREA LOCATION OF ITS MAIN HUB THE AIRLINE ALSO HAD CONSIDERED MOVING TO KANSAS CITY MO OR NEW YORK CITY 9308130024 930813 OUT OF STEP THE POOR GROW POORER IN ISRAEL AS THE ARMY REJECTS MORE YOUTHS THOSE WHO ARE PASSED OVER OFTEN CAN'T GET LICENSES BANK LOANS OR EVEN JOBS A MOTHER'S DESPERATE PLEA BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL TEL AVIV ALMOST EVERYONE IN ISRAEL IS REQUIRED TO SERVE IN THE ARMY BUT THE ARMY DOESN'T WANT 24YEAROLD ARIEL DAHARY AND NOW HE FEARS HE WILL PAY THE PRICE FOR THE REST OF HIS LIFE HE CAN'T FIND WORK HE WAS TURNED DOWN FOR A FACTORY JOB AFTER HE TOLD THE MANAGER HE HADN'T SERVED HE TOOK A COURSE TO LEARN TO RUN A STOREROOM BUT POINTS TO HELPWANTED ADS SPECIFYING AFTER THE ARMY HE COULDN'T EVEN LAND A MUNICIPAL JOB COLLECTING GARBAGE THE CITY OF TEL AVIV SENT HIM A LETTER SAYING PEOPLE NOT FIT FOR ARMY SERVICE AREN'T FIT FOR MUNICIPAL POSITIONS PEOPLE WHO DON'T SERVE IN THE ARMY ARE DISCRIMINATED AGAINST IN THE JOB MARKET SAYS MR DAHARY WHO GREW UP IN ONE OF ISRAEL'S POOREST NEIGHBORHOODS IN A HOME MARKED BY VIOLENCE AT HIS OWN REQUEST HE WAS REEXAMINED TWICE BY ARMY DOCTORS AND WAS STILL TURNED DOWN AFTER TESTS SHOWED HE HAD DIFFICULTIES ADAPTING SOCIALLY I DON'T EXPECT TO LEAD A PLATOON HE SAYS BUT IN ISRAEL YOU'RE A ZERO IF YOU DON'T SERVE WHIPSAWED BY A SHRINKING BUDGET AND A GROWING POOL OF RECRUITS ISRAEL'S 176000PERSON ARMY JUST CAN'T AFFORD TO TAKE EVERYONE ANYMORE BUT THE ARMY'S NEW CHOOSINESS IN A SOCIETY THAT REVOLVES AROUND THE MILITARY MAY HAVE DIRE SOCIAL CONSEQUENCES THOSE IT REJECTS OFTEN POOR AND UNEDUCATED TO BEGIN WITH ARE BEING PUSHED PERHAPS PERMANENTLY OUT OF THE MAINSTREAM TWO CLASSES OF ISRAELIS ARE BEING CREATED SAYS NISSIM COHEN WHO WORKS WITH YOUNG PEOPLE IN THE LOWERCLASS COMMUNITY OF BEIT DAGAN OUTSIDE TEL AVIV THOSE WHO SERVE IN THE ARMY AND FORM THE ELITE AND THOSE WHO DON'T AND REMAIN THE UNDERCLASS ISRAEL'S ARMY HAS SHAPED ITS CULTURE EVER SINCE THE COUNTRY WAS FOUNDED IN 1948 FORMER ARMY OFFICERS DOMINATE THE TOP JOBS IN BUSINESS AND GOVERNMENT AND MILITARY HEROES ARE REVERED IT IS NO COINCIDENCE THAT PEPSICO'S NEW AD CAMPAIGN HERE FEATURES A YOUNG MAN IN ARMY BOOTS DOING PUSHUPS MARKETING SURVEYS FOUND THAT ISRAELI TEENAGERS MOST IDOLIZE NOT ROCK STARS OR SPORTS HEROES BUT PEOPLE IN THE ARMY'S ELITE COMBAT UNITS BY LAW ALL JEWISH MEN AND UNMARRIED WOMEN MUST SERVE WHEN THEY TURN 18 THREE YEARS FOR MEN AND TWO FOR WOMEN MOST ISRAELI ARABS AREN'T REQUIRED TO SERVE BUT IN REALITY ONE OUT OF FIVE ELIGIBLE 18YEAROLD MEN ISN'T DRAFTED NOW AND ANOTHER 10 TO 12 ARE RELEASED EARLY AMONG WOMEN ONE OUT OF THREE ISN'T DRAFTED OFTEN THE ARMY CITES ADAPTATION OR SOCIAL PROBLEMS REJECTING TEENS WHO PERFORM POORLY IN ROUTINE PREDRAFT INTERVIEWS FOR THOSE REJECTED DISCRIMINATION IS A FACT OF LIFE EL AL THE ISRAELI AIRLINE SAYS ONLY ARMY VETERANS CAN BE FLIGHT ATTENDANTS GOVERNMENT JOBS ARE OFTEN DIFFICULT TO GET SINCE IF SOMEONE DOESN'T FIT IN THE ARMY BECAUSE OF SOCIAL OR ADAPTATION PROBLEMS HE WON'T FIT IN A GOVERNMENT JOB SAYS ODED BENAMI A SPOKESMAN FOR THE DEFENSE MINISTRY AND MOST PRIVATE COMPANIES SAYS MOSHE LISSAK A HEBREW UNIVERSITY SOCIOLOGIST HAVE AN UNOFFICIAL POLICY TO ONLY HIRE VETERANS AND CONSIDER LACK OF SERVICE A RED FLAG THOSE WHO DON'T SERVE OFTEN CAN'T GET DRIVER'S LICENSES THEY MUST FIRST BE EXAMINED BY DOCTORS AT A SPECIAL HEALTH MINISTRY INSTITUTE THEY USUALLY CAN'T BUY HOMES SINCE THEY ARE ENTITLED TO MORTGAGES OF ONLY A THIRD THE SIZE OF THOSE VETERANS CAN GET AND THEY RECEIVE JUST HALF THE MONTHLY CHILDCARE PAYMENTS THE GOVERNMENT MAKES TO ALL ISRAELI FAMILIES WITH CHILDREN ARMY OFFICIALS WON'T SPEAK ABOUT THE PROBLEM ON THE RECORD BUT PRIVATELY THEY CONCEDE THAT THE ARMY'S MOVES ARE PROVING DEVASTATING FOR SOME SEGMENTS OF SOCIETY SAYS ONE SENIOR DEFENSE OFFICIAL WE'RE SENSITIVE TO THE FACT THAT EVERY DECISION WE MAKE HAS A HUGE SOCIETAL EFFECT AND THAT THOSE WHO DON'T SERVE WILL BE LOST TO SOCIETY THE GROWING UNDERCLASS INCLUDES GOLAN GINAT A 19YEAROLD JUNIOR HIGHSCHOOL DROPOUT MR GINAT HAD COUNTED ON THE ARMY TO HELP HIM ESCAPE FROM PARDES HANNAH A POVERTYSTRICKEN TOWN ON THE MEDITERRANEAN SHORE WHERE HE SHARES A CRAMPED HOME WITH 23 MEMBERS OF HIS EXTENDED FAMILY BUT HE WAS REJECTED AFTER A DISASTROUS PREDRAFT INTERVIEW DURING WHICH IN A MISGUIDED ATTEMPT AT BRAVADO HE MADE WISECRACKS TO THE FEMALE OFFICER INTERVIEWING HIM AND ASKED HER FOR A LIGHT FOR HIS CIGARETTE WORRIED ABOUT HER SON'S FUTURE HIS MOTHER HANNAH HAS LOBBIED FIVE MEMBERS OF THE ISRAELI PARLIAMENT ON HIS BEHALF SHE HAS SPOKEN OUT ON TELEVISION AND THE RADIO AND TESTIFIED BEFORE A GOVERNMENT COMMITTEE ON A SMALL TABLE IN HER HOME SHE SPREADS OUT COPIES OF LETTERS SHE HAS WRITTEN TO THE ARMY ALL DEMANDING TO KNOW WHY HER SON ISN'T BEING ALLOWED TO SERVE IF THE ARMY DOESN'T TAKE GOLAN SAYS MRS GINAT EVERY DOOR IN THIS COUNTRY WILL BE CLOSED TO HIM MANY DOORS ALREADY ARE UNABLE TO GET A DRIVER'S LICENSE HE WAS CAUGHT DRIVING ANYWAY AND WAS SENTENCED TO COMMUNITYSERVICE WORK IN A HOME FOR THE ELDERLY HE LIKED THE WORK AND ASKED TO BE HIRED PERMANENTLY AS A GARDENER BUT SAYS HIS SUPERVISOR TOLD HIM THE HOME ONLY HIRES VETERANS EMPLOYERS IMMEDIATELY THINK SOMETHING MUST BE WRONG WITH YOU IF THE ARMY DOESN'T WANT YOU HE SAYS YET THE ARMY MAY HAVE LITTLE CHOICE OVER THE PAST DECADE ISRAEL'S DEFENSE BUDGET HAS SHRUNK 14 TO 61 BILLION WHILE THE COSTS OF INTELLIGENCE AND NEW ARMS CONTINUE TO RISE AS A SHARE OF ISRAEL'S NATIONAL BUDGET DEFENSE EXPENDITURES ARE RELATIVELY HIGH COMPARED WITH OTHER DEVELOPED COUNTRIES BUT NEVERTHELESS DROPPED TO 257 THIS YEAR FROM 382 IN 1982 AND THE PERSIAN GULF WAR USHERED IN A HIGHTECHNOLOGY FUTURE THAT WILL REQUIRE FEWER BUT BETTERTRAINED SOLDIERS AT THE SAME TIME THE COUNTRY'S TEENAGE POPULATION IS BOOMING BY 1996 ARMY OFFICIALS SAY THE POOL OF RECRUITS EVEN NOW AMONG THE LARGEST IN THE ARMY'S HISTORY BECAUSE OF THE HUGE INFLUX OF NEW IMMIGRANTS FROM THE FORMER SOVIET UNION WILL BE 21 HIGHER THAN IT WAS IN 1991 THE ARMY ALREADY HAS HAD TO TURN AWAY QUALIFIED RECRUITS WHO VOLUNTEER TO SERVE IN ELITE COMBAT UNITS PRIVATE PREPARATORY COURSES FOR BOYS HOPING TO BE ACCEPTED INTO THESE UNITS ARE DOING A BRISK BUSINESS IN AFFLUENT ISRAELI SUBURBS THERE IS ALREADY A PROBLEM WITH HIDDEN UNEMPLOYMENT' IN REAR UNITS SOLDIERS SIT IN OFFICES PUSHING PAPERS AND IDLENESS ISN'T GOOD FOR AN ARMY SAYS THE SENIOR DEFENSE OFFICIAL HIS OWN OFFICE PROVIDES A VIVID EXAMPLE AS HE SPEAKS THREE FEMALE SOLDIERS APPEAR TO POUR TWO CUPS OF COFFEE THE PROBLEM HAS LATELY EXPLODED INTO THE HEADLINES WITH TWO LAWSUITS AGAINST THE ARMY BOTH WERE BROUGHT BY SOLDIERS WHO WERE TOLD THAT THEY WOULD BE RELEASED EARLY AND WHO CLAIM THAT THEY WON'T BE ABLE TO FIND JOBS AS A RESULT THE SUITS ARE PENDING BEFORE THE ISRAELI SUPREME COURT ONE OF THE ACTIONS WAS BROUGHT BY 21YEAROLD SGT RONEN MANOSOVITCH SITTING IN A TEL AVIV COFFEE SHOP SGT MANOSOVITCH WHO REMAINS ON ACTIVE DUTY WHILE AWAITING A COURT DECISION DESCRIBES HIS PRIDE IN BEING A SOLDIER HIS VOICE RISES WITH EXCITEMENT AS HE TELLS HOW CHILDREN IN HIS POOR NEIGHBORHOOD OUTSIDE OF TEL AVIV RUN UP TO SEE HIM WHEN HE IS WEARING HIS UNIFORM I MAY NOT BE A PILOT BUT I THINK I CONTRIBUTE TO THE ARMY SGT MANOSOVITCH SAYS I UNDERSTAND THAT THEY NEED TO MAKE CUTS BUT WHY SHOULD CERTAIN GROUPS BE THE ONLY ONES WHO GET CUT IN SOME NEIGHBORHOODS THE ONLY CHOICES AVAILABLE ARE THE ARMY OR DRUGS AND CRIME IN COURT PAPERS THE ARMY ARGUED THAT SGT MANOSOVITCH'S CLERICAL JOB HAD TO BE CUT BECAUSE OF A MANPOWER SURPLUS IT NOTED HIS RECORD OF DISCIPLINARY INFRACTIONS INCLUDING TALKING BACK TO HIS COMMANDERS AND A 14DAY STINT IN MILITARY JAIL FOR FAILING TO SHINE HIS BOOTS AND TUCK IN HIS SHIRT THE ARMY DID OFFER TO GRANT HIM FULL VETERANS' BENEFITS AND TO WRITE MANPOWER REDUCTION ON HIS ARMY CERTIFICATE AS THE EXPLANATION FOR HIS PLANNED EARLY RELEASE BUT SGT MANOSOVITCH SAYS HE WILL STILL CARRY A STIGMA I WANT TO BE A TRUCK DRIVER BUT WHEN SOMEONE SEES THAT I SERVED LESS THAN THREE YEARS IT DOESN'T MATTER WHAT EXPLANATION IS WRITTEN ON THE CERTIFICATE HE SAYS AN EMPLOYER IS GOING TO THINK I HAVE A PROBLEM THAT I'M NOT AS GOOD AS EVERYONE ELSE THE CHANGES TAKING PLACE IN THE MILITARY ARE PARTICULARLY WRENCHING BECAUSE ISRAEL'S FOUNDERS VIEWED THE ARMY AS A SOCIAL FORCE AS MUCH AS A MILITARY ONE MILITARY SERVICE CUT ACROSS CLASS LINES A FACTORY OWNER MIGHT FIND HIMSELF TAKING ORDERS FROM A WORKER WITH A HIGHER MILITARY RANK THE ARMY HAS ALWAYS TAUGHT HEBREW TO NEW IMMIGRANTS AND PROVIDED REMEDIAL EDUCATION AND VOCATIONAL TRAINING TO SOLDIERS WHO LACK FORMAL SCHOOLING GOING TO THE ARMY CHANGED MY LIFE SAYS MORDECHAI ABU 37 WHO HEADS THE COMMUNITY CENTER IN BEIT DAGAN WHEN MR ABU WAS DRAFTED HE DIDN'T EVEN BOTHER SHOWING UP TWO MILITARY POLICEMEN HAD TO KNOCK ON HIS DOOR IN A RUNDOWN NEIGHBORHOOD AND PERSONALLY ESCORT HIM TO THE BASE BUT THE ARMY GAVE HIM THE CONFIDENCE TO GO ON TO COLLEGE TODAY HE SAYS THE ARMY WOULDN'T BOTHER SENDING THE MILITARY POLICEMEN AFTER SOMEONE LIKE ME THAT IS JUST AS IT SHOULD BE INSIST SOME MORE AFFLUENT ISRAELIS AT A BEACH IN HERZILYA PITUACH A WEALTHY TEL AVIV SUBURB LINED WITH PALM TREES AND WHITE STUCCO VILLAS 40 TEENAGE BOYS ARE TAKING A PRIVATE COURSE DESIGNED TO HELP THEM MAKE IT INTO ELITE ARMY UNITS THEY CRAWL ON THEIR STOMACHS IN THE SAND PRACTICE HANDTOHAND COMBAT AND RUN UP AND DOWN THE NEARBY HILLS THEY PUSH THEMSELVES SO HARD THAT AFTER ONE GRUELING PRACTICE SEVERAL CAN BE SEEN SPRAWLED ON THE SAND VOMITING ONLY ONE IN 60 RECRUITS IS ACCEPTED INTO ELITE UNITS NATIONWIDE GRADUATES OF THIS CLASS RUN BY 29YEAROLD YUVAL EILAM HAVE AN 80 TO 90 ACCEPTANCE RATE THESE BOYS KNOW COMPETITION IN THE ARMY IS ON THE RISE AND THEY HAVE LITTLE PATIENCE FOR THOSE WHO AREN'T AS QUALIFIED AS THEY ARE THE ARMY ISN'T A WELFARE AGENCY AND I DON'T THINK IT SHOULD BE INVESTING A LOT OF MONEY IN PEOPLE WHO DON'T HELP THE ARMY DO ITS JOB SAYS ONE TEEN THEY CAN USE THAT MONEY TO BUY A NEW AIRPLANE HE ADDS BEFORE RUNNING OFF TO CATCH UP WITH THE GROUP ARMY OFFICIALS INSIST THEY HAVEN'T LOST SIGHT OF THE MILITARY'S SOCIAL ROLE THEY POINT OUT THAT THE MAJORITY OF ISRAELIS ARE STILL DRAFTED AND NOTE THAT THE ARMY RECENTLY EXPANDED A PROGRAM FOR DISADVANTAGED YOUTHS TO 800 SOLDIERS FROM 550 A YEAR BUT JUST TO MAINTAIN ITS CURRENT SIZE THE ARMY WILL HAVE TO CONTINUE SHUTTING THE DOOR ON YOUTHS WHO DESPERATELY WANT TO SERVE LIKE GOLAN GINAT MR GINAT'S NEIGHBORHOOD IN PARDES HANNAH IS A CROWDED WARREN OF UNPAVED ALLEYWAYS CHILDREN OFTEN SKIP SCHOOL DARTING THROUGH A HOLE IN THE SCHOOLYARD FENCE THEY MAKE A GAME OUT OF COLLECTING VIALS DISCARDED BY DRUG ADDICTS MR GINAT WAS BORN A FEW MONTHS AFTER THE 1973 ARABISRAELI WAR HIS PARENTS NAMED HIM AFTER THE GOLAN HEIGHTS THE SITE OF A BLOODY BATTLE WITH THE SYRIANS HE RECOUNTS HOW HIS FATHER SERVED IN THE INFANTRY DURING THAT WAR AND FOUGHT AGAINST THE EGYPTIANS IN THE SINAI DESERT IF NOTHING ELSE WORKS I'M GOING TO SIT OUTSIDE THE DRAFT OFFICE UNTIL THEY AGREE TO TAKE ME MR GINAT SAYS IF THERE'S NO PLACE FOR ME IN THE ARMY THERE'S NO PLACE FOR ME IN ISRAEL 9308130023 930813 AUSTRALIA'S COLES MYER TO SPEND 283 BILLION IN EXPANSION PROGRAM SPECIAL TO THE WALL STREET JOURNAL MELBOURNE AUSTRALIA COLES MYER LTD ONE OF AUSTRALIA'S BIGGEST RETAILERS PLANS TO INVEST 415 BILLION AUSTRALIAN DOLLARS US283 BILLION OVER THE NEXT FIVE YEARS IN AUSTRALIA AND NEW ZEALAND COLES MYER WILL SPEND A18 BILLION ON NEW STORES AND REFURBISHMENTS AND A14 BILLION ON RETAIL PROPERTY DEVELOPMENT PETER BARTELS CHIEF EXECUTIVE OFFICER SAID THE INVESTMENTS WILL CREATE EMPLOYMENT FOR NEARLY 140000 PEOPLE THE EXPANSION WILL INCLUDE THREE NEW MYER DEPARTMENT STORES 44 NEW TARGET STORES 57 COLES SUPERMARKETS 27 KMARTS 50 KATIES STORES 87 LIQUORLAND STORES AND 128 RED ROOSTER STORES THE EXPANSION PROGRAM INCLUDES THE CONSTRUCTION OF MORE THAN A DOZEN MAJOR SHOPPING CENTERS AND WILL INCLUDE INVESTMENT IN TECHNOLOGY DISTRIBUTION CENTERS AND NEW BUSINESS OPPORTUNITIES MR BARTELS SAID THE PROGRAM WILL BE FINANCED ENTIRELY WITH INTERNAL FUNDS ANALYSTS SAID COLES MYER HAS BEEN UNDER PRESSURE RECENTLY BECAUSE OF THE SUCCESSFUL INITIAL PUBLIC OFFERING OF SHARES IN RIVAL RETAIL GROUP WOOLWORTHS LTD AND A PLAN BY FOUR INDEPENDENT WHOLESALE GROCERY COMPANIES TO MERGE THE EXPANSION PLAN REPRESENTS ABOUT A820 MILLION OF CAPITAL EXPENDITURE EACH YEAR FOR FIVE YEARS THAT COMPARES WITH CAPITAL EXPENDITURE OF A3385 MILLION IN THE YEAR ENDED JULY 1992 AND A381 MILLION IN THE YEAR ENDED JULY 1991 COLES MYER'S SHARES CLOSED AT A480 US328 THURSDAY UP 12 CENTS FROM A468 WEDNESDAY WITH ALMOST 2000000 SHARES CHANGING HANDS 9308130022 930813 BASS SAYS EXPANSION OF HOLIDAY INN UNIT IS AT A RECORD PACE SPECIAL TO THE WALL STREET JOURNAL LONDON THE UK'S BASS PLC SAID ITS ATLANTABASED HOTEL DIVISION HOLIDAY INN WORLDWIDE HAS BEEN OPENING NEW HOTELS AT A RECORD PACE SINCE THE BEGINNING OF 1993 91 HOLIDAY INN HOTELS WITH A TOTAL OF 13000 ROOMS OPENED AROUND THE WORLD THAT RATE OF ACTIVITY IS HIGHER THAN THE PREVIOUS PEAK FOR THE CHAIN ACHIEVED IN THE LATE 1960S BEFORE BASS OWNED IT THEN HOLIDAY INN WAS EXPANDING ALONG THE GROWING US INTERSTATE HIGHWAY SYSTEM THIS YEAR ONLY 66 OF THE NEW HOLIDAY INNS WERE OPENED IN THE US WHILE 20 WERE OPENED IN EUROPE THE MIDDLE EAST AND AFRICA AND FIVE WERE ADDED IN THE ASIA PACIFIC AREA HOLIDAY INN HAD 1750 HOTELS AND MORE THAN 337000 GUEST ROOMS IN 50 COUNTRIES AT THE END OF JUNE BASS SAID AGREEMENTS WERE RECENTLY SIGNED WITH LOCAL PARTNERS TO DEVELOP AT LEAST 10 MORE HOLIDAY INNS IN MEXICO 20 MORE IN GERMANY SEVEN MORE IN SOUTH AFRICA AND SIX MORE IN THE UK AND THE BENELUX COUNTRIES HOLIDAY INN CHAIRMAN BRYAN D LANGTON SAID THE CHAIN'S FOCUS ON FRANCHISE AGREEMENTS HAS ALLOWED IT TO EXPAND AMID A CONTINUED WORLDWIDE RECESSION 9308130021 930813 ABREAST OF THE MARKET INDUSTRIALS FALL 1426 AS INVESTORS IGNORE INFLATION DATA TAKE PROFITS BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK INVESTORS IGNORED A STELLAR READING ON INFLATION AND MOVED INSTEAD TO LOCK IN PROFITS FROM WEDNESDAY'S RALLY THE DOW JONES INDUSTRIAL AVERAGE FELL 1426 OR 040 TO 356909 BROADER INDEXES ALSO DECLINED BIG BOARD LOSERS LED WINNERS 1075 TO 849 STOCKS INITIALLY FOLLOWED BONDS HIGHER JUMPING TO WITHIN SEVEN POINTS OF 3600 IN EARLY TRADING BUT THE ENTHUSIASM WAS SHORTLIVED AND BEFORE MIDDAY A WAVE OF FUTURESRELATED PROGRAM SELLING PUSHED MARKET AVERAGES SHARPLY LOWER ECONOMICALLY SENSITIVE STOCKS WHICH HAVE BEEN STRONGEST ALL WEEK WERE BATTERED MOST BY THE PROFITTAKERS THE DOW JONES INDUSTRIAL AVERAGE WHICH IS HEAVILY WEIGHTED WITH CYCLICAL ISSUES WAS DOWN MORE THAN 30 POINTS AT ITS WORST LEVEL OF THE SESSION JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH SAID THE LACKLUSTER TENOR OF YESTERDAY MORNING'S ECONOMIC NEWS HELPED TO SET OFF SELLING IN CYCLICALS BUT OVERALL ANALYSTS SAID THE DATA WERE LARGELY CONSISTENT WITH PREVIOUS REPORTS WHICH HAVE DEPICTED SLOWLY IMPROVING ECONOMIC CONDITIONS I DON'T THINK THERE WAS ANY SURPRISE IN THE ECONOMIC READINGS SAID CHARLES CLOUGH MARKET STRATEGIST AT MERRILL LYNCH & CO YESTERDAY'S RETREAT JUST FELL INTO A SEQUENCE OF MODEST UPS AND MODEST DOWNS THAT HAVE CHARACTERIZED THE MARKET'S COURSE FOR MONTHS HE SAID THE LABOR DEPARTMENT YESTERDAY MORNING SAID ITS PRODUCER PRICE INDEX A MEASURE OF WHOLESALE LEVEL INFLATION DECLINED 02 LAST MONTH SURPRISING ANALYSTS WHO HAD PREDICTED A 01 INCREASE SEPARATELY THE COMMERCE DEPARTMENT SAID JULY RETAIL SALES ROSE A LOWERTHANEXPECTED 01 THE STANDARD & POOR'S 500STOCK INDEX LOST 150 OR 033 TO 44896 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SHED 082 OR 033 TO 24917 AND THE DOW JONES EQUITY MARKET INDEX DECLINED 130 OR 030 TO 42694 DECLINERS AMONG ECONOMICALLY SENSITIVE ISSUES INCLUDED CATERPILLAR WHICH SLIPPED 1 TO 81 3/8 MINNESOTA MINING & MANUFACTURING WHICH LOST 7/8 TO 107 5/8 AND UNITED TECHNOLOGIES WHICH FELL 1/2 TO 58 1/2 MR SOLLOWAY STILL EXPECTS THE CYCLICAL GROUP TO BE AMONG THE BEST PERFORMERS IN COMING MONTHS BUT HE SAID THE GAINS MIGHT BE ON HOLD UNTIL INVESTORS RECEIVE MORE REASSURING NEWS ON THE ECONOMY HE PREDICTS MORE PROFITTAKING IN THE MARKET AS A WHOLE FOR THE NEAR TERM T2 MEDICAL PLUMMETED 4 3/4 TO 8 7/8 AFTER THE COMPANY SAID IT HAD UNCOVERED ACCOUNTING IRREGULARITIES THAT WILL FORCE IT TO RESTATE LOWER FIRSTQUARTER AND SECONDQUARTER RESULTS THE NEWS ALSO HELPED TO DEFLATE HOPES THAT A PLANNED MANAGEMENTLED BUYOUT OF THE ALPHARETTA GA INFUSION THERAPY SERVICES PROVIDER WILL SUCCEED OBSERVERS SAID MANY OTHER HEALTHCARE STOCKS THOUGH REBOUNDED SOMEWHAT FROM THEIR SHARP LOSSES OF WEDNESDAY A DOCUMENT THAT WAS CIRCULATING ON WALL STREET RECENTLYPROPORTED TO BE A SUMMARY OF THE CLINTON ADMINISTRATION'S HEALTHCARE REFORM PACKAGE WAS DEEMED A FABRICATION BY A WHITE HOUSE SPOKESMAN WEDNESDAY UNITED HEALTHCARE WHICH PLUMMETED 6 3/4 WEDNESDAY ADVANCED 4 TO 56 3/4 ELSEWHERE HMO AMERICA GAINED 2 3/4 TO 35 7/8 MEDTRONIC RALLIED 1 7/8 TO 59 1/2 FOUNDATION HEALTH ROSE 1/2 TO 19 1/8 AND WELLPOINT HEALTH INCREASED 1 5/8 TO 26 1/4 THE BOUNCE BACK THOUGH WASN'T UNIVERSAL RAMSAYHMO EASED 1/2 TO 27 1/2 AND PHARMACEUTICALS STOCKS WERE MOSTLY LOWER AFTER SMITH BARNEY SHEARSON CUT EARNINGS ESTIMATES FOR THE GROUP PARTLY CITING CONCERNS ABOUT CUTBACKS IN TAX CREDITS GIVEN DRUG COMPANIES WITH MANUFACTURING OPERATIONS IN PUERTO RICO AMONG DRUG STOCKS AMERICAN HOME PRODUCTS FELL 5/8 TO 58 3/4 GLAXO HOLDINGS SLIPPED 1/4 TO 15 ELI LILLY & CO FELL 5/8 TO 43 3/4 AND MERCK & CO DROPPED 3/4 TO 28 7/8 SHARES OF PRECIOUS METALS PRODUCERS FELL AS GOLD PRICES FELL SHARPLY FOR A SECOND STRAIGHT DAY HOMESTAKE MINING LOST 7/8 TO 18 3/8 AMERICAN BARRICK DECLINED 3/4 TO 24 3/8 ECHO BAY MINES FELL 3/4 TO 11 1/2 PEGASUS GOLD FELL 1 1/8 TO 21 3/4 AND NEWMONT MINING DECLINED 3 TO 47 3/8 CLOROX TUMBLED 4 1/8 TO 47 3/8 AFTER SMITH BARNEY SHEARSON ANALYST JOSEPH KOZLOFF REDUCED HIS RATING ON THE STOCK TO NEUTRAL FROM OUTPERFORM CITING CONCERN ABOUT RECENT SHARE PRICE GAINS THE OAKLAND CALIF HOUSEHOLD PRODUCTS CONCERN POSTED IMPROVED EARNINGS WEDNESDAY LANDS' END INCREASED 2 3/8 TO 32 1/8 THE MAIL ORDER CLOTHING SELLER REPORTED PROFIT FROM OPERATIONS OF 43 CENTS A SHARE FOR THE SECOND QUARTER ENDED JULY 30 A YEAR AGO IT HAD NET INCOME OF 37 CENTS EQUITY RESIDENTIAL PROPERTIES TRUST JUMPED TO 28 5/8 ON ITS FIRST DAY OF TRADING THE CHICAGO REALESTATE INVESTMENT TRUST WAS THE SUBJECT OF AN 115 MILLIONSHARE INITIAL OFFERING PRICED AT 26 A SHARE THE ISSUE WAS INCREASED IN SIZE FROM AN ORIGINALLY PLANNED 109 MILLION SHARES NATIONAL GOLF PROPERTIES A SANTA MONICA CALIF REIT THAT WILL OWN AND OPERATE GOLF COURSES CLOSED AT ITS INITIAL OFFERING PRICE OF 20375 IT HAD AN OFFERING OF 97 MILLION SHARES TWO NEW STOCK OFFERINGS WERE PRICED AFTER THE CLOSE OF THE MARKET BORGWARNER AUTOMOTIVE SOLD 35 MILLION COMMON SHARES AT 25 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND WOLVERINE TUBE WHICH MAKES COPPER AND ALLOY TUBING OFFERED 57 MILLION COMMON SHARES PRICED AT 1550 EACH THROUGH UNDERWRITERS LED BY FIRST BOSTON THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX FELL 129 TO 43758 THERE WERE 309 DECLINERS AND 251 ADVANCERS 9308130020 930813 ECONOMISTS SEE LITTLE HARM FROM LIFTING TAXES OF RICH MANY ECONOMISTS DOUBT THAT INCREASING THE TAXES OF THE WEALTHY WILL HURT THE ECONOMY VERY MUCH THE NEW TAX LAW WILL HAVE ONLY A MINIMAL EFFECT ON THE ECONOMY PREDICTS BRUCE STEINBERG AN ECONOMIST AT MERRILL LYNCH & CO HE RECENTLY WROTE A REPORT ON THE SUBJECT ENTITLED TAX HIKE WON'T DERAIL THE ECONOMY SPECIFICALLY MERRILL LYNCH ESTIMATES THE NEW LAW WILL SLOW THE ECONOMY BY NO MORE THAN TWOTENTHS OF ONE PERCENTAGE POINT NEXT YEAR LOW INTEREST RATES WILL HELP OFFSET MUCH OF THE IMPACT OF HIGHER TAXES MR STEINBERG SAYS THAT ABOUT 75 OF THE DOLLAR AMOUNT OF HIGHER TAXES WILL COME FROM THE TOP 1 OF ALL TAXPAYERS THESE UPPERINCOME TAXPAYERS ARE MORE LIKELY TO REACT BY CUTTING THEIR SAVINGS THAN SLASHING THEIR SPENDING MR STEINBERG WROTE IN HIS REPORT HE ADDED THAT WILL TEND TO MUTE FISCAL DRAG CONTAINED IN THE NEW TAX LAW ECONOMISTS SAY A SPECIAL STRETCHOUT PROVISION OF THE NEW LAW SHOULD EASE THE STING FOR MANY UPPERINCOME TAXPAYERS THAT PROVISION ALLOWS ANYONE WHO OWES HIGHER TAXES IN 1993 BECAUSE OF THE LAW'S HIGHER RATES TO SPREAD OUT THOSE PAYMENTS FOR TWO YEARS BEYOND NEXT APRIL THE PROVISION WAS SLIPPED INTO THE MEASURE JUST BEFORE CONGRESS VOTED LATE LAST WEEK 9308130019 930813 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE GROWTH RATE OF JAPAN'S POPULATION DROPPED TO A RECORD LOW OF 03 IN THE PAST FISCAL YEAR AND THE AVERAGE HOUSEHOLD SIZE OF 288 PEOPLE WAS THE SMALLEST EVER IN THE YEAR ENDED MARCH 31 THE POPULATION TOTALED 124 MILLION A SURVEY BY THE HOME AFFAIRS MINISTRY FOUND UNLIKE THE NATIONAL CENSUS THE DATA EXCLUDED FOREIGN RESIDENTS WOMEN ACCOUNTED FOR 508 OF THE POPULATION UP 001 PERCENTAGE POINT FROM THE YEAREARLIER POLL TOTAL HOUSEHOLDS INCREASED 15 TO 431 MILLION THE FLOW OF PEOPLE TO THE TOKYO NAGOYA AND OSAKA METROPOLITAN AREAS SLOWED WHILE THE NUMBER OF RURAL RESIDENTS INCREASED ATTRACTED BY LESS EXPENSIVE HOUSING THE TOKYO AREA WHERE ELDERLY COUPLES AND SINGLE PEOPLE PREDOMINATE LOST ABOUT 50000 RESIDENTS AND ITS HOUSEHOLDS AVERAGING 233 MEMBERS WERE THE SMALLEST IN THE NATION POPULATION GROWTH SLOWED AS THE NUMBER OF DEATHS ROSE SHARPLY REFLECTING AN AGING SOCIETY WHILE BIRTHS DECLINED BIG FRENCH COMPANIES DON'T EXPECT AN ECONOMIC RECOVERY THIS YEAR THOUGH THEY SEE CONDITIONS STABILIZING THE 2000 FIRMS' RESPONSES IN A GOVERNMENT SURVEY DON'T BODE WELL FOR SECONDHALF SALES OR EMPLOYMENT THE REPORT COINCIDED WITH A SLEW OF FIRSTHALF REVENUE DROPS POSTED BY FRENCH COMPANIES BUSINESS LEADERS POLLED WERE MORE PESSIMISTIC ABOUT SECONDHALF SALES GROWTH THAN THEY WERE A YEAR EARLIER THOUGH THE OUTLOOK VARIES SHARPLY BY SECTOR RESPONDENTS SAID THEY WOULD REDUCE STAFFS AT A FASTER RATE THAN IN THE FIRST HALF UNEMPLOYMENT AN EXPLOSIVE POLITICAL AND SOCIAL ISSUE IN FRANCE WITH ELECTIONS COMING NEXT YEAR NOW STANDS AT 116 THE DEATH OF A SICILIAN BUSINESSMAN TARGETED BY ITALY'S CORRUPTION PROBE WAS BELIEVED TO BE A SUICIDE THE 11TH IN THE 18MONTH SCANDAL GIUSEPPE MAGRO 62 YEARS OLD REPORTEDLY JUMPED FROM HIS SEVENTHFLOOR PALERMO APARTMENT AND LANDED ON THE ROOF OF A POLICE BUILDING HE RAN A BUILDING COMPANY WHOSE OWNER HAS BEEN CONVICTED FOR MAFIA ASSOCIATION HE HAD BEEN WARNED HE FACED AN INVESTIGATION OF BRIBERY IN PUBLICWORKS CONTRACTS INVESTIGATORS ARE EXAMINING LINKS AMONG ORGANIZED CRIME POLITICS AND BUSINESS THE THREE OWNERS OF AN EGYPTIAN APARTMENT BUILDING THAT COLLAPSED IN AN EARTHQUAKE KILLING 68 PEOPLE WERE EACH SENTENCED TO 10 YEARS IN PRISON TWO CONSULTANT ENGINEERS RECEIVED 10YEAR TERMS AND 300000 FINES AT LEAST FIVE FLOORS OF THE 14STORY BUILDING IN A CAIRO SUBURB HAD BEEN BUILT WITHOUT PERMITS AND WALLS HAD CRACKED BEFORE THE TEMBLOR OCCURRED THE QUAKE LAST OCT 12 LEFT MORE THAN 500 PEOPLE DEAD AND 5000 INJURED AND TOPPLED HUNDREDS OF OLD BUILDINGS CHINA KEEPS DREAMING UP GIMMICKS TO BOOST TOURISM JUST AFTER THE SPACE INDUSTRY'S VEIL WAS LIFTED FOR FOREIGN VISITORS THE ARMY INVITED TRAVELERS TO BE A CHINESE SOLDIER FOR A DAY THE XINHUA NEWS AGENCY SAID AN ARMY DIVISION IN TIANJIN 60 MILES EAST OF BEIJING IS COOPERATING WITH THE CITY'S TOURISM OFFICE TO SPONSOR THE TOURS THE PROGRAM INCLUDES INSPECTING AN HONOR GUARD THAT GREETS VISITING HEADS OF STATE AND OBSERVING BAYONET AND BAREHANDED FIGHTING AND WEAPONS USE SPAIN'S ECONOMY IN THE SECOND QUARTER SHRANK 1 FROM A YEAR EARLIER IMPROVING SLIGHTLY AFTER A 11 CONTRACTION IN THE FIRST THREE MONTHS THE CENTRAL BANK SAID THE DATA ON GROSS DOMESTIC PRODUCT ADJUSTED FOR INFLATION INDICATED SPAIN'S RECESSION MAY HAVE TOUCHED BOTTOM BUT THE BANK SAID IT HADN'T SIGHTED INDICATIONS OF A REBOUND NOTING SLUGGISH CONSUMER DEMAND AND LOWER CAPITAL SPENDING BUT THE DEPRECIATING SPANISH PESETA AND SUBSEQUENT GROWTH IN EXPORTS AND SLOWDOWN IN IMPORTS NARROWED THE TRADE DEFICIT CHINA CLOSED 1000 ECONOMIC DEVELOPMENT ZONES THAT LOCAL GOVERNMENTS HAD SET UP IN BOOMING COASTAL REGIONS BUT THAT HAD CONTRIBUTED TO AN OVERHEATING ECONOMY ABOUT 1200 OF THESE SPECIAL ZONES OFFERING PREFERENTIAL TREATMENT SUCH AS TAX AND TARIFF BREAKS TO ATTRACT FOREIGN INVESTORS HAD SPRUNG UP AS LOCAL OFFICIALS DEFIED STATE RULES AND SOUGHT TO CASH IN ON CHINA'S ECONOMIC REFORMS AND RAPID MODERNIZATION THE CABINET HAD APPROVED ONLY 30 ZONES SINCE THE MARKETORIENTED EXPERIMENT WAS BEGUN IN THE EARLY 1980S THE CLOSURES FOLLOWED A REVIEW BEGUN IN MAY AS BEIJING STRUGGLED TO DEAL WITH THE SURGING ECONOMY WHICH GREW AT A 12 ANNUAL RATE IN THE FIRST HALF AND TO CONTROL INFLATION WHICH RAN AT A 125 PACE THE GOVERNMENT DECIDED THAT MANY OF THE SPECIAL ZONES DIVERTED MONEY TO PROJECTS OF DUBIOUS VALUE HAD LIMITED DEVELOPMENT PROSPECTS AND WASTED OR DAMAGED LAND THAT COULD BE USED FOR FARMING THE SHUTTERINGS REDUCED THE TOTAL AREA DEDICATED TO THE ECONOMIC ZONES TO 640 SQUARE MILES FROM MORE THAN 3000 PUBLICSECTOR EMPLOYEES IN GREECE HELD A ONEDAY STRIKE TO PROTEST THE PLAN TO SELL OFF PART OF THE STATE'S HUGE TELECOMMUNICATIONS COMPANY AND ALLOW FOREIGN MANAGEMENT RUSSIA'S POWERFUL FARMERS LOBBY STAGED NATIONWIDE DEMONSTRATIONS TO DEMAND GREATER GOVERNMENT SUBSIDIES AND HIGHER GRAIN PRICES AMONG THE THOUSANDS RALLYING WERE REPRESENTATIVES OF SOVIETERA COLLECTIVE FARMS OPPOSED TO LAND SALES A CORNERSTONE OF ECONOMIC REFORMS RUSSIA'S 25000 FARMS ARE NOTORIOUSLY INEFFICIENT 9308130018 930813 FOREIGNOWNED COMPANIES SHOW HIGHER US TAX BILL WASHINGTON A GROUP REPRESENTING FOREIGNOWNED CORPORATIONS OPERATING IN THE US RELEASED FIGURES SHOWING THAT THESE COMPANIES PAID 74 BILLION IN TAXES TO THE US GOVERNMENT IN 1990 THAT WAS UP FROM THE 62 BILLION PAID IN 1989 AND CONTINUES A STEADY RISE IN THE LEVEL OF TAXES PAID BY FOREIGNCONTROLLED COMPANIES TO THE US GOVERNMENT SINCE 1986 THE ORGANIZATION FOR INTERNATIONAL INVESTMENT WHICH IS MADE UP OF 55 USBASED SUBSIDIARIES OF MAJOR FOREIGN CONCERNS DISCLOSED THE DATA THE DATA WERE PREPARED BY THE ACCOUNTING FIRM KPMG PEAT MARWICK WHICH RECEIVED ACCESS TO NEW INTERNAL REVENUE SERVICE STATISTICS THAT HAVEN'T BEEN WIDELY CIRCULATED THE NEW FIGURES ARE BOUND TO ADD TO THE DEBATE OVER WHETHER FOREIGN COMPANIES ARE PAYING THEIR FAIR SHARE OF US TAXES THE ISSUE WAS A THEME OF THE LAST PRESIDENTIAL CAMPAIGN AND HAS BEEN THE SUBJECT OF NUMEROUS HEARINGS ON CAPITOL HILL IN AN ACCOMPANYING ANALYSIS PEAT MARWICK POINTED OUT THAT AS A PERCENT OF ASSETS NET WORTH AND RECEIPTS THE US TAX BURDEN OF FOREIGNCONTROLLED COMPANIES IS SIMILAR TO THAT OF THEIR USCONTROLLED COUNTERPARTS IN FOREIGN COUNTRIES 9308130017 930813 MARKETING & MEDIA INFINITY BROADCASTING AFFILIATES FINED BY FCC WASHINGTON AP INFINITY BROADCASTING CORP AND FOUR OF ITS AFFILIATES WERE FINED 500000 BY THE FEDERAL COMMUNICATIONS COMMISSION FOR ALLEGEDLY BROADCASTING INDECENT COMMENTS BY PERSONALITY HOWARD STERN MR STERN'S SHOW IS SYNDICATED BY INFINITY THE COMPANY HAS BEEN FINED 600000 FOR PREVIOUS BROADCASTS IT HAS 30 DAYS TO RESPOND TO YESTERDAY'S CHARGES THE FCC SAID THE INFRACTIONS OCCURRED BETWEEN NOV 10 AND JAN 13 INFINITY HAS SINCE TAKEN STEPS TO KEEP INDECENCY OFF THE AIR DURING TIMES WHEN SUCH LANGUAGE IS PROHIBITED THE COMMISSION SAID THE 125000 FINES WERE AGAINST WXRKFM IN NEW YORK WYSPFM IN PHILADELPHIA WJFKFM IN MANASSAS VA AND WJFKAM IN BALTIMORE ON WEDNESDAY THE FCC FINED KFBIFM OF PAHRUMP NEV 73750 FOR CARRYING THE SAME STERN BROADCASTS INVOLVED IN YESTERDAY'S PENALTIES FEDERAL LAW DEFINES INDECENCY AS LANGUAGE THAT DESCRIBES IN TERMS PATENTLY OFFENSIVE AS MEASURED BY CONTEMPORARY COMMUNITY STANDARDS FOR THE BROADCAST MEDIUM SEXUAL OR EXCRETORY ACTIVITIES AND ORGANS SUCH TALK CAN ONLY BE BROADCAST DURING NIGHT AND OVERNIGHT HOURS WHEN CHILDREN ARE UNLIKELY TO BE LISTENING 9308130016 930813 BUSINESS BRIEF WYMANGORDON CO OSHA ASKS SAFETY PENALTIES OF MORE THAN 1 MILLION THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION CHARGED WYMANGORDON CO WITH 149 SAFETY VIOLATIONS AT A NORTH GRAFTON MASS METAL FORGINGS PLANT AND PROPOSED OVER 1 MILLION IN PENALTIES WYMANGORDON SAID IT WILL VIGOROUSLY CHALLENGE THE ALLEGATIONS AND THE AMOUNT OF THE FINE IT SAID MANY OF THE CITED CONDITIONS HAVE EXISTED SINCE THE PLANT WAS BUILT IN THE 1940'S AND HADN'T PREVIOUSLY BEEN CITED IN OSHA INSPECTIONS OSHA SAID THE ALLEGED VIOLATIONS WERE DISCOVERED DURING AN INSPECTION AT THE NORTH GRAFTON MANUFACTURING FACILITY IN MARCH AND APRIL IT SAID THE INSPECTION WAS INITIATED IN RESPONSE TO AN EMPLOYEE COMPLAINT THE PLANT HAS ABOUT 900 WORKERS OSHA SAID THE PROPOSED PENALTIES INCLUDE 65 VIOLATIONS THAT WERE SIMILAR TO PROBLEMS FOUND AT OTHER WYMANGORDON PLANTS AND CARRY 830500 IN PENALTIES IT CITED 74 OTHER ALLEGED SERIOUS VIOLATIONS WITH 245500 IN PROPOSED PENALTIES AND 10 OTHER VIOLATIONS WITH NO CASH PENALTIES THE ALLEGED HAZARDS INCLUDE UNMARKED AND BLOCKED EXITS UNGUARDED MACHINE PARTS AND LACK OF PROTECTIVE EQUIPMENT FOR WORKERS NEAR FURNACES AND ACID TANKS 9308130015 930813 BUSINESS BRIEF CAMBRIDGE SHOPPING CENTRES LTD TORONTO REALESTATE FIRM IS TO SELL STAKES IN MALLS CAMBRIDGE SHOPPING CENTRES LTD SAID IT HAS AGREED TO SELL HALF ITS INTEREST IN FIVE CANADIAN SHOPPING MALLS TO AN ONTARIO PENSION FUND TO RAISE CASH TO PAY DOWN DEBT AND TO FINANCE EXPANSION PLANS THE TORONTOBASED REALESTATE CONCERN SAID IT WILL SELL THE INTERESTS IN SHOPPING CENTERS IN THE PROVINCES OF ONTARIO AND ALBERTA TO ONTREA INC A COMPANY OWNED BY THE ONTARIO TEACHERS' PENSION PLAN BOARD FOR TOTAL PROCEEDS OF 2764 MILLION CANADIAN DOLLARS US2119 MILLION CAMBRIDGE OWNS 100 OF FOUR OF THE MALLS AND 675 OF THE FIFTH IT WILL CONTINUE TO MANAGE THE PROPERTIES AFTER THE TRANSACTION CLOSES IN OCTOBER THE SHOPPINGMALL MANAGEMENT COMPANY SAID IT WOULD LIKE TO USE PART OF THE PROCEEDS TO PAY DOWN SOME OF ITS C21 BILLION OF DEBT BUT THAT IT TOO IS WATCHING FOR ACQUISITION OPPORTUNITIES WE'RE SEEING A GOOD MANY ATTRACTIVE INVESTMENTS PRESENTING THEMSELVES SAID DONALD PRIDDLE CHIEF FINANCIAL OFFICER OF CAMBRIDGE WE'D LIKE TO EXPAND OUR INVOLVEMENT IN THE US AND WE WOULD LOVE TO INCREASE OUR PORTFOLIO IN QUEBEC AND TO A LESSER EXTENT CANADA'S EASTERN PROVINCES 9308130014 930813 DUTCH BANK RAIDED BY SWISS DETECTIVES FOR PIRATED SOFTWARE INVESTIGATORS TO REPORT FINDINGS SOON ABN IN ZURICH PAYS COMPANIES FOR PROGRAMS BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL ABN AMRO BANK IN ZURICH RECEIVED A NASTY SHOCK THIS SUMMER WHEN A DOZEN INVESTIGATORS RAIDED ITS OFFICES DEMANDING ACCESS TO COMPUTER PROGRAMS WE WERE SURPRISED SAID GENERAL MANAGER HANS BUCK WE WERE ALSO COOPERATIVE THE ZURICH DISTRICT ATTORNEY WAS TIPPED OFF THAT THE DUTCH BANK USED PIRATED WORDPROCESSING AND SPREADSHEET PROGRAMS THE SWISS DETECTIVES CAME ARMED WITH NEW SOFTWARE TO FIND PIRATED PROGRAMS WITHIN WEEKS ZURICH INVESTIGATORS WILL REPORT ON THEIR FINDINGS MEANWHILE ABN AMRO HAS PAID THE SOFTWARE COMPANIES FOR THE PIRATED VERSIONS OF THEIR PROGRAMS WHICH WERE VALUED AT ABOUT 200000 SWISS FRANCS 132837 MR BUCK SAID ABN AMRO ZURICH GENERAL MANAGEMENT IS HIGHLY EMBARRASSED ABOUT AN ALLEGED INFRACTION OF WHICH IT KNEW NOTHING HE SUGGESTS THE ACCIDENT PROBABLY RESULTED FROM A THOUGHTLESS ATTEMPT BY COMPUTER FREAKS TO KEEP COSTS DOWN MEANWHILE THERE IS A FEELING OF TRIUMPH AT THE LONDON OFFICE OF BUSINESS SOFTWARE ALLIANCE WHICH IS RESPONSIBLE FOR COORDINATING A EUROPEWIDE OFFENSIVE AGAINST SOFTWARE PIRATING MEMBERS OF THE ALLIANCE IN EUROPE INCLUDE APPLE COMPUTER INC MICROSOFT CORP AND WORDPERFECT CORP EUROPEAN PIRATING IS SAID TO COST SOFTWARE COMPANIES ABOUT 46 BILLION ANNUALLY IN COUNTRIES SUCH AS ITALY AND SPAIN ACCORDING TO 1992 FIGURES ONLY 14 OF SOFTWARE USE IS LEGAL SAID AN OFFICIAL OF THE ALLIANCE BRAD SMITH OVER THE LAST SIX MONTHS WE HAVE BEEN GETTING AN INCREASING FLOW OF INFORMATION ABOUT EUROPEAN BANKS INFRINGING SOFTWARE COPYRIGHT THE SWISS CASE IS IMPORTANT FOR US BECAUSE SWITZERLAND IS A MAJOR FINANCIAL CENTER THE ABN AMRO BANK AFFAIR IS BUSINESS SOFTWARE ALLIANCE'S SECOND PROSECUTION OF A LEADING EUROPEAN BANK THE OTHER INVOLVED ILLEGAL USE OF SOFTWARE AT BANQUE PARIBAS IN 1989 PARIBAS SETTLED OUT OF COURT ABN AMRO'S MR BUCK SAID HIS BANK HOPES TO DO THE SAME 9308130013 930813 BUSINESS BRIEF ROTHMANS INTERNATIONAL PLC UK LUXURY GOODS CONCERN SEES SATISFACTORY' EARNINGS ROTHMANS INTERNATIONAL PLC A UK TOBACCO AND LUXURY GOODS CONCERN REITERATED ITS PREDICTION OF SATISFACTORY EARNINGS FOR ITS CURRENT FINANCIAL YEAR BUSINESS HAS CONTINUED TO BE DIFFICULT FOR LUXURY GOODS DIVISION DUNHILL HOLDINGS PLC SINCE ITS FINANCIAL YEAR ENDED MARCH 31 ROTHMANS SAID ROTHMANS IS IN THE MIDST OF MERGING MAJOR OPERATIONS WITH DUNHILL AND THE SWISS FIRM COMPAGNIE FINANCIERE RICHEMONT AG AT ITS ANNUAL GENERAL MEETING JULY 30 ROTHMANS SAID THAT ALTHOUGH THE RECESSION REMAINS EVIDENT IN SOME MARKETS THE COMPANY EXPECTS SATISFACTORY RESULTS FOR THE YEAR THE COMPANY SAID IT SEES OPPORTUNITIES IN THE TOBACCO BUSINESS AS WORLDWIDE CONSUMPTION RISES THIS PROVIDES OPPORTUNITIES FOR INTERNATIONAL TOBACCO COMPANIES TO SELL QUALITY CIGARETTE BRANDS PARTICULARLY TO MARKETS WHERE OPPORTUNITIES FOR EXPORT OR LOCAL PRODUCTION HAVE BEEN TRADITIONALLY LIMITED THROUGH IMPORT RESTRICTIONS GOVERNMENT POLICY OR LACK OF CONVERTIBLE CURRENCY THE COMPANY SAID 9308130012 930813 OTC FOCUS PROFITTAKING ERASES EARLY STOCK GAINS AS BONDS SLIP AFTER 30YEAR AUCTION BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK PROFITTAKING HIT NASDAQ STOCKS AS BONDS SLIPPED FOLLOWING DISAPPOINTING BIDDING AT THE 30YEAR AUCTION THERE WAS A LOT OF WHIPSAWING AROUND ON THE BOND ACTION TODAY SAID ARNOLD OWEN MANAGING DIRECTOR OF TRADING AT SOUNDVIEW FINANCIAL THE NASDAQ COMPOSITE INDEX FELL 165 POINTS OR 023 TO 71712 ERASING EARLY STRENGTH ON FIRM BONDS DECLINING ISSUES SWAMPED ADVANCERS 1467 TO 1332 TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME WAS AT 225635706 SHARES DOWN SLIGHTLY FROM 246553500 SHARES WEDNESDAY BOND PRICES HAD ADVANCED YESTERDAY MORNING ON FAVORABLE INFLATION DATA WITH THE 30YEAR BOND'S YIELD BELOW HISTORICAL LOWS AGAIN BUT THE LONG BOND SLIPPED NEARLY 1/8 OF A POINT ON SOFT DEMAND AT THE AUCTION SENDING ITS YIELD SLIGHTLY HIGHER TO ABOUT 643 THE LABOR DEPARTMENT SAID JULY PRODUCER PRICES FELL A SURPRISING 02 ALTHOUGH ECONOMISTS HAD LOOKED FOR A 01 INCREASE TRADERS SAY TODAY'S JULY CONSUMER PRICES WILL BE A MAJOR FOCUS DESPITE THE FACT THAT YESTERDAY'S DATA WERE HAILED AS PROOF THAT INFLATION IS UNDER CONTROL AND WON'T HEAD HIGHER NEW YORK STOCK EXCHANGE SHARES FOLLOWED A SIMILAR COURSE GAINING IN THE MORNING AND THEN FALLING BACK AS TRADING PROGRESSED THE DOW JONES INDUSTRIAL AVERAGE GAVE UP 1426 POINTS OR 040 TO FINISH AT 356909 THE BIG BOARD'S COMPOSITE INDEX FELL 082 POINT OR 033 TO 24917 MARKET WATCHERS SAID THE BUDGET PACKAGE AND THE EFFECTS IT MIGHT HAVE ON THE MARKET ARE STILL WORRYING INVESTORS PEOPLE DON'T KNOW WHAT THE BUDGET BILL REALLY MEANS YET AND HOW IT WILL AFFECT THE ECONOMY SAID SOUNDVIEW'S MR OWEN THERE ARE THOSE WHO BELIEVE IT WILL BE GOOD FOR THE ECONOMY AND REDUCE THE DEFICIT AND THERE ARE THOSE THAT SAY THE TAXES WILL HURT THE ECONOMY JAMES R SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH CORP SAID THERE IS CONCERN THAT THE BUDGET IS NOT A GOOD ONE IT'S A BUDGET ONLY A MUNICIPAL BOND BROKER COULD LOVE NO COUNTRY HAS EVER TAXED ITSELF INTO PROSPERITY MR SOLLOWAY AND OTHER OBSERVERS HAVE ALSO SAID THAT FEARS OVER THE UPCOMING PLAN TO OVERHAUL THE NATION'S HEALTHCARE SYSTEM ARE ALSO WEIGHING HEAVILY ON THE MARKET PARTICULARLY MEDICALRELATED STOCKS WEDNESDAY HEALTH MAINTENANCE ORGANIZATION STOCKS GOT PUMMELED IN PART ON ANXIETY OVER THE PLAN BUT MR SOLLOWAY SAID THAT YESTERDAY'S SELLING WAS FAIRLY BROADBASED THE NATURE OF THE DECLINE SUGGESTS THAT WE'VE COME TO THE END OF THIS RALLY THERE REALLY ISN'T MUCH OUT THERE AT THE MOMENT TO HELP DRIVE STOCK PRICES UP MUCH MORE IN THE NEAR TERM HE ADDED THAT INTEREST RATES WILL LIKELY MOVE HIGHER QUITE SOON MEANWHILE MANY HMO ISSUES PULLED THEMSELVES OUT OF THE DOLDRUMS THEY FELL INTO WEDNESDAY TAKECARE JUMPED 1 1/2 TO 41 3/4 MID ATLANTIC MEDICAL GAINED 1 5/8 TO 23 1/2 AND FHP INTERNATIONAL ROSE 2 5/8 TO 25 1/2 US HEALTHCARE SURGED 4 1/4 TO 45 1/2 AND LED THE MOST ACTIVE LIST ON VOLUME OF 54 MILLION SHARES ABOVE ITS 13 MILLIONSHARE AVERAGE DAILY VOLUME 9308130011 930813 FINANCING BUSINESS ABITIBIPRICE INC ABITIBIPRICE INC TORONTO SAID IT PLANS TO ISSUE EARLY NEXT MONTH EIGHT MILLION TO 10 MILLION COMMON SHARES AT 1275 CANADIAN DOLLARS US977 EACH THE FOREST PRODUCTS COMPANY SAID IT EXPECTS TO RAISE ABOUT C100 MILLION TO C125 MILLION ABITIBIPRICE HAS 693 MILLION SHARES OUTSTANDING ABITIBIPRICE SAID PROCEEDS WILL BE USED TO REPLENISH WORKING CAPITAL AND REPAY SHORTTERM DEBT A GROUP OF CANADIAN SECURITIES FIRMS LED BY NESBITT THOMSON INC WILL UNDERWRITE THE OFFERING 9308130010 930813 LUFTHANSA SAYS DEFICIT NARROWED IN FIRST SIX MONTHS SPECIAL TO THE WALL STREET JOURNAL FRANKFURT GERMANY'S NATIONAL AIR CARRIER LUFTHANSA AG SAID A SLIGHT PROFIT IN THE SECOND QUARTER HELPED IT CUT ITS PRETAX LOSSES FOR THE FIRST SIX MONTHS BY MORE THAN HALF COMPARED WITH THE YEAR EARLIER FOR THE FIRST HALF LUFTHANSA POSTED A PRETAX LOSS OF 221 MILLION MARKS 1282 MILLION COMPARED WITH THE YEAREARLIER PRETAX LOSS OF 542 MILLION MARKS IN THE SECOND QUARTER ALONE LUFTHANSA POSTED A PRETAX PROFIT OF 24 MILLION MARKS THE COMPANY DIDN'T PROVIDE PRETAX FIGURES FOR THE SECOND QUARTER OF 1992 ALL OF THE PRETAX FIGURES REFER TO THE LUFTHANSA AG AIRLINE ALONE AS OPPOSED TO THE CONSOLIDATED LUFTHANSA GROUP ALTHOUGH LUFTHANSA'S RETURN TO PROFITABILITY IN THE SECOND QUARTER HELPED IT CUT ITS LOSSES THE CARRIER ALSO BENEFITED FROM A CHANGE IN ITS ACCOUNTING PROCEDURES INSTITUTED LAST SEPTEMBER THE MAIN FEATURE OF THE NEW ACCOUNTING PRINCIPLES IS THAT LUFTHANSA NOW WRITES OFF ITS PLANES TO 15 OF THEIR VALUE OVER 12 YEARS WHEREAS IT USED TO WRITE OFF ITS PLANES TO 5 OF THEIR VALUE OVER 10 YEARS THE NEW ACCOUNTING PRINCIPLES ARE IN LINE WITH INDUSTRY PRACTICES ALTHOUGH LUFTHANSA REPORTED A 46 RISE IN THE NUMBER OF PASSENGERS TO 14 MILLION IN THE FIRST HALF TURNOVER ROSE ONLY 06 TO 69 BILLION MARKS THE COMPANY DIDN'T PROVIDE FIRSTHALF 1992 TURNOVER FIGURES LUFTHANSA NOTED THAT THE DISCREPANCY BETWEEN THE RISE IN THE NUMBER OF PASSENGERS FLOWN AND THE INCREASE IN REVENUE REFLECTS THE DIFFICULT CONDITIONS IN THE INDUSTRY PRICES REMAIN UNDER PRESSURE FROM EXCESS GLOBAL AIRLINE CAPACITY ALTHOUGH THE COMPANY DIDN'T PROVIDE ANY SPECIFIC FIGURES IT DID SAY THAT OPERATING COSTS IN THE FIRST SIX MONTHS OF 1993 FELL 55 FROM A YEAR EARLIER 9308130009 930813 BUSINESS BRIEF SEQUA CORP SECONDPERIOD LOSS POSTED DIVIDENDS ARE SUSPENDED SEQUA CORP HAMPERED BY INVESTIGATIONS THAT RESTRICTED OPERATIONS AT ITS LARGEST UNIT FOR EIGHT WEEKS REPORTED A LOSS FOR THE SECOND QUARTER AND SUSPENDED DIVIDEND PAYMENTS THE NEW YORK COMPANY REPORTED A LOSS OF 185 MILLION OR 2 A SHARE COMPARED WITH NET INCOME OF 51 MILLION OR 45 CENTS A SHARE A YEAR EARLIER REVENUE DECLINED 13 TO 4124 MILLION THE AEROSPACE AND CHEMICAL CONCERN SAID MARKET CONDITIONS ALONG WITH RESTRICTIONS THAT SUSPENDED OPERATIONS AT ITS JET ENGINE REPAIR PLANT IN ORANGEBURG NY SEVERELY UNDERCUT PERFORMANCE AT THE CHROMALLOY GAS TURBINE UNIT AS A RESULT OF THE LOSS SEQUA SAID IT IS REQUIRED BY TERMS OF ITS 105 SENIOR SUBORDINATED NOTES TO SUSPEND PAYMENT OF DIVIDENDS ON COMMON AND PREFERRED SHARES THE 125 QUARTERLY DIVIDEND IS CUMULATIVE SO HOLDERS WILL RECEIVE A CATCHUP PAYMENT WHEN THE SUSPENSION IS LIFTED SEQUA SAID THE QUARTERLY DIVIDENDS OF 15 CENTS A SHARE ON CLASS A COMMON STOCK AND 125 CENTS A SHARE ON CLASS B COMMON STOCK WILL BE SUSPENDED UNTIL EARNINGS WARRANT A RESUMPTION OF PAYMENTS 9308130008 930813 BUSINESS BRIEF TELECOM CORP PARTNERSHIP OF BELL ATLANTIC AMERITECH SEES STRONG NET PETER SHIRTCLIFFE CHAIRMAN OF TELECOM CORP OF NEW ZEALAND SAID THE COMPANY IS OPTIMISTIC ABOUT FUTURE EARNINGS PROSPECTS NOW THAT THE NEW ZEALAND ECONOMY IS SHOWING RELATIVELY STRONG GROWTH THE CHAIRMAN SAID TELECOM RECORDED A 22 RISE IN AFTERTAX OPERATING PROFIT TO A RECORD 1182 MILLION NEW ZEALAND DOLLARS US65 MILLION IN ITS FISCAL FIRST QUARTER ENDED JUNE 30 TELECOM DIRECTORS ARE CONFIDENT THAT THE EXCELLENT FIRSTQUARTER RESULT HERALDS ANOTHER GOOD YEAR FOR THE COMPANY MR SHIRTCLIFFE SAID SPEAKING AT THE ANNUAL MEETING IN WELLINGTON NEW ZEALAND BELL ATLANTIC CORP OF THE US CONTROLS TELECOM IN PARTNERSHIP WITH AMERITECH CORP ALSO OF THE US IN THE FISCAL YEAR ENDED MARCH 31 TELECOM RECORDED A 73 DROP IN AFTERTAX PROFIT TO NZ1077 MILLION BUT THAT WAS DUE TO ONETIME RESTRUCTURING COSTS MAINLY THE COST OF STAFF LAYOFFS 9308130007 930813 BUSINESS BRIEF INTERTAN INC TANDY BUYS ALL DEBT GETS WARRANTS IN RESCUE PLAN INTERTAN INC SAID TANDY CORP HAS ACQUIRED ALL OF INTERTAN'S DEBT AND RECEIVED WARRANTS FOR ABOUT 1450000 INTERTAN SHARES AS PART OF A PREVIOUSLY REPORTED RESCUE PLAN THE BARRIE ONTARIO CONSUMERELECTRONICS RETAILER SAID THE WARRANTS GIVE TANDY IN FORT WORTH TEXAS THE RIGHT TO BUY THE SHARES OVER A FIVEYEAR PERIOD AT 6618 A SHARE INTERTAN HAD ABOUT NINE MILLION SHARES OUTSTANDING AS OF MARCH 31 THE STOCK CLOSED YESTERDAY AT 6875 A SHARE DOWN 625 CENTS OR 83 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE INTERTAN WHICH OPERATES RADIO SHACK AND TANDY STORES OUTSIDE THE US IS TANDY'S BIGGEST CUSTOMER TANDY AGREED TO ACQUIRE ITS DEBT AFTER THE RETAILER'S BANKS DEMANDED REPAYMENT OF 54 MILLION IN LOANS 9308130006 930813 INTERNATIONAL PROFIT AT UNION BANK OF SWITZERLAND ROSE 89 FOR 1ST HALF OF '93 SPECIAL TO THE WALL STREET JOURNAL ZURICH UNION BANK OF SWITZERLAND SAID ITS FIRSTHALF 1993 NET INCOME ROSE 89 TO 129 BILLION SWISS FRANCS 8412 MILLION FROM 682 MILLION SWISS FRANCS IN THE SAME PERIOD IN 1992 THE RESULTS WERE FAR BETTER THAN ANALYSTS HAD EXPECTED MOST PREDICTIONS WERE FOR A PROFIT INCREASE OF BETWEEN 35 AND 50 THE REPORT SENT THEM SCRAMBLING TO REVISE FORECASTS FOR 1993 EARNINGS ALL IN ALL THIS IS AN ABSOLUTE RECORD FIGURE SAID HANS KAUFMANN CHIEF OF RESEARCH AT BANK JULIUS BAER IN ZURICH HE SAID HE REVISED UPWARD HIS ESTIMATE FOR 1993 GROUP NET PROFIT TO 22 BILLION FRANCS UP 63 FROM 134 BILLION FRANCS IN 1992 HIS PREVIOUS ESTIMATE WAS 178 BILLION FRANCS UP 33 GROUP CASH FLOW ROSE 58 TO 237 BILLION FRANCS FROM 15 BILLION FRANCS WHILE ASSETS INCREASED 9 TO 2907 BILLION FRANCS FROM 2667 BILLION FRANCS PROVISIONS VALUE ADJUSTMENTS AND DEPRECIATION REMAINED HIGH AT 107 BILLION FRANCS IN THE FIRST HALF COMPARED WITH 809 MILLION FRANCS IN THE SAME PERIOD LAST YEAR THE BANK BLAMED DOUBTFUL DEBTS AND COUNTRY RISKS BUT ADDED THE SITUATION IS EXPECTED TO GRADUALLY EASE AS SOON AS THE ANTICIPATED SLOW ECONOMIC RECOVERY MATERIALIZES THE BANK SAID ITS PROFIT PERFORMANCE STEMMED FROM BRISK ACTIVITY ON THE SECURITIES MARKETS AS WELL AS VOLATILE FLUCTUATIONS IN VARIOUS FOREIGN EXCHANGE RATES AND LOWER MONEY MARKET RATES IN SEVERAL MAJOR CURRENCIES WHILE THE BANK EXPECTS A GOOD RESULT FOR THE SECOND HALF OF 1993 BARRING UNEXPECTED MAJOR SETBACKS IT DOESN'T EXPECT TO REPEAT ITS FIRSTHALF PERFORMANCE SEVERAL ANALYSTS SAY THEY BELIEVE UBS PADDED ITS PROVISIONING REQUIREMENTS IN ORDER NOT TO REPORT EVEN HIGHER PROFITS THE ISSUE OF HIGH BANK PROFITS IS POLITICALLY SENSITIVE IN SWITZERLAND BECAUSE THE BANKS HAVE CUT JOBS IN ORDER TO CONTROL COSTS UNION BANK SHARES CLOSED AT 1221 FRANCS 796 UP 22 FRANCS ON THE ZURICH BOURSE 9308130005 930813 WHO'S NEWS CREDIT LYONNAIS PLANS TO BUY OUT CONTRACT OF EXMGM CHIEF HOLLYWOOD THE FRENCH BANK CREDIT LYONNAIS SA TWO WEEKS AFTER OUSTING ALAN LADD JR AS CHAIRMAN AND PRESIDENT OF ITS AILING METROGOLDWYN MAYER INC MOVIE STUDIO STRUCK A DEAL TO BUY OUT HIS EMPLOYMENT CONTRACT INDIVIDUALS CLOSE TO THE SITUATION SAID THAT THE PACT COULD COST THE BANK CONSIDERABLY MORE THAN 5 MILLION BASED ON MR LADD'S CONTRACT THE 55YEAROLD FORMER STUDIO CHIEF COULDN'T BE REACHED AND HIS ATTORNEY ALLEN SUSMAN DECLINED TO COMMENT MR SUSMAN HAD PREVIOUSLY ISSUED A STATEMENT COMPLAINING THAT HIS CLIENT'S TERMINATION WAS WITHOUT CAUSE AN MGM SPOKESMAN SAID THE SETTLEMENT MEANS THAT MR LADD WON'T SUE FOR WRONGFUL TERMINATION IN ITS STATEMENT CREDIT LYONNAIS PRAISED MR LADD'S TENURE AT THE STUDIO SAYING THAT HE BROUGHT HIS CONSIDERABLE STATURE AND SKILLS TO BEAR ON STABILIZING MGM'S BUSINESS AT A VERY DIFFICULT TIME IN ITS HISTORY IN LATE JULY FRANK G MANCUSO FORMER CHAIRMAN OF PARAMOUNT COMMUNICATIONS INC'S PARAMOUNT PICTURE'S UNIT WAS NAMED TO SUCCEED MR LADD ALONG WITH THE MANAGEMENT CHANGE THE FRENCH STATEOWNED BANK AGREED TO NEW FUNDING AND OTHER FINANCIAL ARRANGEMENTS TO CLEAN UP THE STUDIO'S BALANCE SHEET THE PLAN ORCHESTRATED BY MICHAEL OVITZ HEAD OF THE CREATIVE ARTISTS TALENT AGENCY CALLS FOR MR MANCUSO TO RUN THE STUDIO WITH NEWLY SEPARATED MGM AND UNITED ARTISTS PRODUCTION ARMS RELEASING MOVIES THROUGH A COMMON DISTRIBUTION SYSTEM CREDIT LYONNAIS HOPES TO PUMP UP THE COMPANY'S FILM PRODUCTION TO MAKE IT MORE ATTRACTIVE TO BUYERS UNDER TERMS OF MR LADD'S CONTRACT HE WAS TO RECEIVE 25 MILLION A YEAR THROUGH THE END OF 1994 OR THE EQUIVALENT OF ABOUT 35 MILLION FOR THE 17 MONTHS REMAINING UNDER THE CONTRACT THE CONTRACT ALSO CONTAINED A 15 MILLION TERMINATION PROVISION MR LADD HAS CONTINUED TO GO INTO THE OFFICE EVERY DAY SINCE HIS OUSTER APPARENTLY TO STRENGTHEN HIS LEGAL CASE 9308130004 930813 PREMIUM SALES RECEIVER SAYS EXECUTIVES PAID BRIBES TO CONFIRM PHONY DEALS BY NIKHIL DEOGUN STAFF REPORTER OF THE WALL STREET JOURNAL THE COURTAPPOINTED RECEIVER FOR PREMIUM SALES CORP THE ONCEHIGHFLYING FOOD TRADING CONCERN ACCUSED OF DEFRAUDING INVESTORS OF 400 MILLION ALLEGED THAT TWO TOP PREMIUM EXECUTIVES BRIBED FOOD COMPANY EMPLOYEES TO CONFIRM PHONY TRANSACTIONS IN A REPORT FILED YESTERDAY IN FEDERAL COURT IN MIAMI THE RECEIVER SAID PREMIUM PRESIDENT KENNETH THENEN AND DANIEL MORRIS THE COMPANY'S SALES MANAGER BRIBED FOOD COMPANY EMPLOYEES AND PAID PROFESSIONAL CONFIRMERS RECRUITED TO POSE AS FOOD COMPANY EMPLOYEES MILLIONS OF DOLLARS WERE PAID TO THESE OPERATIVES WHO WORKED FROM SPECIAL LOCATIONS WITH MOBILE PHONES THE REPORT ALLEGES ADDING THAT THE CONFIRMERS RECEIVED ADVANCE FACSIMILE COPIES OF THE PURPORTED TRANSACTIONS SO THE IMPERSONATORS KNEW WHOM TO IMPERSONATE AND WHAT TO FALSELY CONFIRM THE FOOD COMPANIES WEREN'T IDENTIFIED EDWARD SHOHAT AN ATTORNEY FOR MESSRS THENEN AND MORRIS SAID HE COULDN'T COMMENT ON THE REPORT AS HE HADN'T READ IT YET THE REPORT BY MIAMI LAWYER HARLEY S TROPIN WHO IS SERVING AS RECEIVER AND TRUSTEE WIDENS THE SCOPE OF THE ALLEGED FRAUD AND CASTS NEW LIGHT ON HOW PREMIUM SALES OPERATED BASED IN NORTH MIAMI BEACH PREMIUM SALES WAS PLACED IN RECEIVERSHIP TWO MONTHS AGO AFTER THE SECURITIES AND EXCHANGE COMMISSION ACCUSED THE COMPANY IN A CIVIL SUIT OF DEFRAUDING INVESTORS MESSRS THENEN AND MORRIS HAVE DECLINED TO COMMENT ON THE SUIT PREMIUM PRESENTED ITSELF AS A COMPANY THAT BOUGHT HUGE QUANTITIES OF GROCERY STORE PRODUCTS IN ONE PART OF THE COUNTRY AND SOLD THEM AT A HIGHER PRICE ELSEWHERE IN HIS REPORT THE RECEIVER ALSO POINTS A FINGER AT THE COMPANY'S GENERAL PARTNERS SAYING SOME SHOULD HAVE KNOWN THINGS WEREN'T AS THEY SEEMED AT PREMIUM SALES AMONG OTHER THINGS THE GENERAL PARTNERS WERE RESPONSIBLE FOR VERIFYING PREMIUM SALES' GROCERY SALES AND PURCHASE TRANSACTIONS ON BEHALF OF 1000 INVESTORS ONE GENERAL PARTNER FOR INSTANCE VISITED THE PURPORTED LOCATIONS OF CERTAIN SUPPLIERS FINDING ONLY VACANT LOTS AND CRACK HOUSES THE REPORT ALLEGES NONETHELESS THAT AND OTHER DISCOVERIES DIDN'T STOP SOME OF THE GENERAL PARTNERS WHO WEREN'T IDENTIFIED FROM CONTINUING TO SOLICIT MONEY FROM UNWITTING INVESTORS THE REPORT CHARGES WHILE SOME GENERAL PARTNERS MAY HAVE BEEN DUPED BY FALSE CONFIRMATIONS OF TRANSACTIONS THE REPORT ALLEGES THAT SOME OF THEM ABANDONED THE CONFIRMING PROCESS ALTOGETHER THE RECEIVER SAID HE IS INVESTIGATING WHETHER THE GENERAL PARTNERS STOPPED CONFIRMING BECAUSE THEY WERE SIMPLY NEGLIGENT OR WHETHER THEY WILLFULLY CHOSE TO IGNORE RED FLAGS THAT HINTED AT A FRAUD SO THE PARTNERS COULD CONTINUE TO PROFIT THE REPORT ALSO CHARGED THAT MESSRS THENEN AND MORRIS CONTROLLED ABOUT 25 OTHER COMPANIES THAT WIRED MILLIONS OF DOLLARS TO FOREIGN BANK ACCOUNTS AND THAT PREMIUM SALES REPORTED THAT IT WAS PROFITABLE IN ITS TAX RETURNS TO AVOID THE POSSIBILITY OF AN IRS AUDIT THE COMPANY'S TOP OFFICERS ENGAGED IN AN ORGY OF SPENDING THE REPORT ALLEGED EVEN AS THE COMPANY'S COLLAPSE WAS IMMINENT THE FAMILY MEMBERS OF MR THENEN AND MR MORRIS FOR INSTANCE DROVE LUXURY CARS LIKE MERCEDES BENZES AND PORSCHES AND WENT ON EUROPEAN SHOPPING SPREES THROUGH THE FIRST SIX MONTHS OF THE YEAR THE THENENS CHARGED MORE THAN 460000 TO THEIR AMERICAN EXPRESS ACCOUNTS FOR SHOPPING EATING AND TRAVELING ALL PAID BY PREMIUM AND THEREFORE BY INVESTORS ACCORDING TO THE REPORT IN THE 10 DAYS BEFORE PREMIUM WAS PLACED IN RECEIVERSHIP ON JUNE 9 THE REPORT CHARGED THAT MR THENEN'S SON SCOTT WITHDREW 44000 IN CASH FROM PREMIUM'S SAFE INCREASING HIS TOTAL CASH WITHDRAWALS FOR THE YEAR TO 220747 AND DESPITE A FEDERAL ORDER FREEZING THEIR ASSETS ON JUNE 14 SCOTT THENEN MANAGED TO CHARGE 25927 ON HIS AMERICAN EXPRESS CARD THE REPORT ALLEGED THE YOUNGER MR THENEN COULDN'T BE REACHED FOR COMMENT 9308130003 930813 MUTUAL BENEFIT BAILOUT IS CLEARED IN NEW JERSEY COURT BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A NEW JERSEY STATE JUDGE APPROVED THE BAILOUT PLAN FOR NEWARKBASED MUTUAL BENEFIT LIFE INSURANCE CO IN A DECISION THAT REPRESENTS A PARTIAL VICTORY FOR A GROUP OF MAJOR BANKS UNDER THE RULING CITICORP BANKERS TRUST NEW YORK CORP AND JP MORGAN & CO WILL HAVE TO WAIT YEARS BEFORE GETTING BACK 55 MILLION THEY ARE OWED BY MUTUAL BENEFIT IF THEY GET IT BACK IT ALL BUT JUDGE PAUL LEVY IN TRENTON NJ OPENED THE DOOR FOR THEM TO TRY TO RECOVER ANOTHER 65 MILLION CLAIMED AS AN ADMINISTRATIVE EXPENSE I'M PLEASED SAID FREDERICK LACEY A NEWARK ATTORNEY FOR THE BANKS DESPITE THE UNSETTLED ISSUE WITH THE BANKS THE RULING APPEARS TO CLEAR THE WAY FOR MUTUAL BENEFIT TO BEGIN IMPLEMENTING ITS PLAN TO PAY BACK POLICYHOLDERS MOST OF WHOM HAVE HAD THEIR MONEY FROZEN SINCE THE STATE SEIZED THE BIG INSURER TWO YEARS AGO MUTUAL BENEFIT HAS LIABILITIES OF NEARLY 11 BILLION OF WHICH 99 BILLION IS OWED TO POLICYHOLDERS THE COMPANY HAS ASSETS OF 88 BILLION MUTUAL BENEFIT A VICTIM OF AN AGGRESSIVE LENDING PROGRAM IN REAL ESTATE WAS ONE OF THE LARGEST LIFE INSURERS TO FAIL THE COMPANY'S COLLAPSE SHOWED THAT OLDLINE MUTUAL LIFE INSURERS ONCE CONSIDERED STRONG ENOUGH TO WITHSTAND WHATEVER THE ECONOMY DISHED UP WERE AS VULNERABLE AS OTHER COMPANIES THE FAILURE COUPLED WITH THE SEIZURE OF OTHER LIFE INSURERS SPARKED CALLS FOR FEDERAL REGULATION OF THE INSURANCE INDUSTRY AND HELPED BRING ABOUT TOUGHER SOLVENCY LAWS AT THE STATE LEVEL THE THREE BANKS CLAIM MUTUAL BENEFIT OWES THEM 120 MILLION ARISING FROM INTERESTRATE SWAP AGREEMENTS OF THAT AMOUNT THE DECISION HOLDS THAT THE BANKS ARE OWED 55 MILLION AS GENERAL CREDITORS MEANING IN THIS CASE THEY MUST WAIT UNTIL DECEMBER 31 1999 BEFORE BEING PAID THAT ASSUMES THERE IS SOME MONEY LEFT AFTER PAYING POLICYHOLDERS BUT THE JUDGE AGREED THAT LOSSES UNDER THE SWAP AGREEMENT THAT BUILT UP AFTER NEW JERSEY SEIZED THE INSURER COUNT AS AN ADMINISTRATIVE EXPENSE THE THEORY IS THE RECEIVERSHIP COULD HAVE TERMINATED THE SWAP AGREEMENT BUT DIDN'T THE RESCUE PLAN GIVES POLICYHOLDERS A CHOICE OF HOW TO BE PAID THEY CAN KEEP THEIR MUTUAL BENEFIT POLICIES UNTIL THE END OF 1999 AND THEN GET THEIR MONEY BACK PLUS INTEREST OR THEY CAN WITHDRAW THEIR MONEY AND GET BACK 55 CENTS ON THE DOLLAR 9308130002 930813 T2 MEDICAL'S ALLEGRA RESIGNS TOP POSITIONS PROFIT TO BE RESTATED DOWN FOR 1ST 2ND QUARTERS IRREGULARITIES BLAMED BY EMORY THOMAS JR AND GEORGE ANDERS STAFF REPORTERS OF THE WALL STREET JOURNAL T2 MEDICAL INC SAID ITS CHIEF EXECUTIVE OFFICER RESIGNED ITS CHIEF FINANCIAL OFFICER TOOK LEAVE AND ITS EARNINGS FOR THE FIRST AND SECOND QUARTERS WILL HAVE TO BE RESTATED SHARPLY DOWNWARD TO REFLECT ACCOUNTING IRREGULARITIES AND ERRORS MEANWHILE THE US DEPARTMENT OF HEALTH AND HUMAN SERVICES CONFIRMED THAT T2 IS ONE OF SEVERAL TARGETS OF INVESTIGATIONS INTO POSSIBLE MEDICARE FRAUD INVOLVING POSSIBLE KICKBACKS TO DOCTORS WHO OWN FACILITIES AND PARTICIPATE IN SELFREFERRAL ARRANGEMENTS T2 SAID JOSEPH C ALLEGRA WAS RESIGNING AS PRESIDENT CHIEF EXECUTIVE OFFICER AND DIRECTOR SO THAT HE COULD PURSUE FULLTIME HIS PREVIOUSLY ANNOUNCED EFFORT TO TAKE THE COMPANY PRIVATE IN A MANAGEMENT BUYOUT IN ADDITION DAVID HERSH THE CHIEF FINANCIAL OFFICER AND TREASURER WILL TAKE ADMINISTRATIVE LEAVE WITH PAY A SEARCH FOR SUCCESSORS TO BOTH MEN IS TO BEGIN THE COMPANY SAID YESTERDAY MR ALLEGRA COULDN'T BE REACHED FOR COMMENT AND NEITHER MR HERSH NOR THE COMPANY WOULD COMMENT T2 WOULDN'T SAY WHETHER THE DEPARTURES WERE TIED TO THE ACCOUNTING PROBLEMS WHICH RELATED TO THE TIMING OF REVENUE RECOGNITION AND THE WRITEOFF OF DOUBTFUL ACCOUNTS AT THE COMPANY WHICH PROVIDES AMONG OTHER SERVICES OUTPATIENT INFUSION THERAPY OR THE DELIVERY OF DRUGS OR OTHER FLUIDS INTRAVENOUSLY T2 SAID IT WOULD HAVE TO RESTATE FIRSTQUARTER EARNINGS TO ABOUT 14 MILLION TO 15 MILLION OR 35 CENTS TO 37 CENTS A SHARE FROM THE 167 MILLION OR 44 CENTS A SHARE PREVIOUSLY REPORTED SECONDQUARTER EARNINGS IT SAID WILL BE RESTATED TO 11 MILLION TO 12 MILLION OR 27 CENTS TO 29 CENTS A SHARE FROM THE 19 MILLION OR 47 CENTS A SHARE PREVIOUSLY REPORTED THE COMPANY NOW ESTIMATES THIRDQUARTER 1993 EARNINGS WERE ABOUT 8 MILLION TO 9 MILLION OR 21 CENTS TO 23 CENTS A SHARE COMPARED WITH 17 MILLION OR 42 CENTS A SHARE THE YEAR EARLIER T2'S FISCAL 1992 REVENUE WAS 242 MILLION AND 144 MILLION FOR THE LATEST SIX MONTHS ENDED MARCH 31 THE COMPANY WAS FOUNDED IN 1984 AND WENT PUBLIC IN 1988 SPARKED BY A BOARD AUDIT COMMITTEE'S INVESTIGATION T2 SAID IT SHOULD HAVE BOOSTED ITS DOUBTFULACCOUNT PROVISIONS BY 4 MILLION TO 5 MILLION IN THE FIRST QUARTER ENDED DEC 31 AND BY 3 MILLION TO 4 MILLION FOR ITS FISCAL SECOND QUARTER IN ADDITION THE COMPANY SAID A PROVISION OF ABOUT 4 MILLION TO 5 MILLION SHOULD BE ESTABLISHED FOR THE THIRD QUARTER IN ITS ANNOUNCEMENT T2 BLAMED MUCH OF ITS DOUBTFULACCOUNT PROBLEMS ON A CHANGE IN REIMBURSEMENT PRACTICES BY INSURANCE COMPANIES TRADITIONALLY INSURERS HAVE PAID FOR A WIDE RANGE OF ITEMBYITEM CHARGES FROM HOMEINFUSION COMPANIES BUT IN THE PAST 18 MONTHS MANY INSURERS HAVE SET STRICT PERDIEM LIMITS ON REIMBURSEMENTS THE INSURERS' NEW PRACTICES DEFINITELY MAKE A DIFFERENCE IN THE FINANCIAL RETURN FROM HOME INFUSION SAID MARGARET WINTERMYER MANAGER OF A T2 FACILITY IN BALTIMORE IT'S NOT LIKE THE OLD DAYS MS WINTERMYER SAID INSURERS NOW PAY AS LITTLE AS 185 A DAY FOR PATIENTS RECEIVING ANTIBIOTIC THERAPY AT HOMEAN AMOUNT THAT SHE SAID DOESN'T ALWAYS COVER COSTS OF NURSES TRAVEL INSURANCE DRUGS AND OTHER MEDICAL SUPPLIES OTHER MAJOR PLAYERS IN THE HOMEINFUSION MARKET ALSO HAVE BEEN JOLTED BY A DROP IN INSURANCE PAYMENTS DALLASBASED MEDICAL CARE AMERICA INC TOLD ANALYSTS THIS SPRING THAT IT HAD BEEN SEEING SIGNIFICANT PRICE PRESSURE IN ITS HOMEINFUSION BUSINESS AND ANALYSTS HAVE EXPRESSED CON CERN ABOUT PRICE TRENDS FOR THE INDUSTRY LEADER CAREMARK INTERNATIONAL INC CAREMARK AND MEDICAL CARE YESTERDAY DECLINED TO COMMENT BUT T2'S TROUBLES APPEAR TO HAVE BEEN COMPOUNDED BY OVERLY OPTIMISTIC EXPECTATIONS ABOUT HOW MUCH PATIENTS THEMSELVES WOULD BE ABLE TO PAY FOR THEIR HOMEINFUSION TREATMENT IN ITS MARCH 31 QUARTERLY EARNINGS REPORT T2 STATED THAT ITS PROVISION FOR DOUBTFUL ACCOUNTS SURGED MORE THAN 70 TO 33 MILLION FROM 19 MILLION A YEAR EARLIER T2 ADDED THAT THOSE DOUBTFUL ACCOUNTS REPRESENTED 17 OF ALL PATIENT BILLS OUTSTANDING YESTERDAY T2 SAID THAT EVEN THOSE INCREASED DOUBTFULACCOUNT PROVISIONS WEREN'T ADEQUATE T2 MAKES A GOODFAITH EFFORT TO COLLECT AMOUNTS THAT PATIENTS OWE SAID MS WINTERMYER THE BALTIMORE BRANCH MAN AGER BUT MOST OF ITS PATIENTS ARE WORKINGCLASS AND SOME ARE HARDSHIP CASES SHE NOTED AMONG THE PATIENTS RECEIVING HOMEINFUSION THERAPY ARE THOSE WITH CANCER AIDS AND CYSTIC FIBROSIS ANALYSTS HOWEVER SAY T2 MEDICAL WAS FAR TOO SLOW TO REACT FRANKLY THEY SHOULD HAVE RECOGNIZED WELL BEFORE NOW THAT THE REIMBURSEMENT ENVIRONMENT WAS CHANGING SAID LORI PRICE SENIOR ANALYST WITH OPPENHEIMER & CO YESTERDAY'S DEVELOPMENTS FUELED DOUBTS AMONG INVESTORS ABOUT THE PROSPECTS THAT A BUYOUT WOULD SUCCEED I ALWAYS BELIEVED THEIR ABILITY TO SECURE FINANCING ON REASONABLE TERMS WAS QUESTIONABLE SAID MS PRICE HOWEVER ROD DOWLING MANAGING DIRECTOR OF ROBINSONHUMPHREY CO WHICH IS ASSISTING ALLEGRA IN THE BUYOUT ATTEMPT INSISTED THE SEARCH FOR FINANCING WILL CONTINUE UNABATED ROBINSONHUMPHREY IS SOLIDLY BEHIND THE EFFORT HE SAID 9308130001 930813 WORLD MARKETS LONDON STOCKS LOG YET ANOTHER RECORD FINISH AS PRICES ON EUROPEAN BOURSES KEEP SIZZLING A WALL STREET JOURNAL NEWS ROUNDUP LONDON SHARES EXHIBITED STAYING POWER AND MANAGED A SMALL GAIN YESTERDAY TO A RECORD THE FOURTH IN THE PAST FIVE SESSIONS FRANKFURT STOCKS JUMPED 21 TO A THREEYEAR HIGH AS BUYERS RUSHED TO LOCK IN POSITIONS AHEAD OF AN ANTICIPATED RALLY THE BIG BOURSES' GAINS CAME AMID WIDESPREAD PREDICTIONS OF EUROPEAN INTERESTRATE REDUCTIONS TO STIMULATE ECONOMIC GROWTH WHICH ALSO BOOSTED OTHER EXCHANGES STOCKHOLM PRICES SOARED 21 TO A 1993 RECORD LEVEL ZURICH SHARES ROCKETED 16 MADRID PRICES MARKED A NEW HIGH FOR THIS YEAR AND BRUSSELS STOCKS CHALKED UP A 12 INCREASE TO A 2 1/2YEAR HIGH TOKYO SHARES EDGED HIGHER THURSDAY ON PERSISTENT EXPECTATIONS OF LOWER JAPANESE INTEREST RATES AND FURTHER GOVERNMENT STEPS TO INVIGORATE THE ECONOMY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11073 UP 034 REFLECTING HIGHER EUROPEAN AND ASIA/PACIFIC MARKETS AND LOWER MARKETS IN THE AMERICAS STEEL STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11820 UP 363 OR 32 WITH THYSSEN OF GERMANY POSTING A 61 GAIN IN ITS LOCAL CURRENCY PRECIOUS METALS STOCKS TRAILED AT 13573 DOWN 314 OR 23 WITH NEWMONT MINING OF THE US SLIDING 6 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX EDGED UP 30 POINTS TO 30091 SURPRISING ANALYSTS BY FINISHING ABOVE THE 3000 LEVEL AFTER THE RECENT BULL RUN BUT THE FT 30STOCK INDEX FELL 99 POINTS TO 23692 VOLUME WAS 908 MILLION SHARES UP FROM 8304 MILLION SHARES A DAY EARLIER THE 100STOCK INDEX WIGGLED UP AND DOWN DURING THE SESSION BUT ENOUGH BUYERS EMERGED TO SUSTAIN THE MARKET AT HIGHER LEVELS THOUGH NEW DATA SHOWED BRITISH UNEMPLOYMENT ROSE IN JULY FOR THE FIRST TIME SINCE JANUARY AND FACTORY OUTPUT FELL IN JUNE THE MARKET SPUN THE REPORTS BULLISHLY SAYING THIS ONLY INCREASED THE CHANCES FOR INTERESTRATE CUTS HOPES FOR LOWER BRITISH AND EUROPEAN RATES HAVE BEEN THE DRIVING FORCE BEHIND THE MARKET'S CLIMB OF ALMOST 200 POINTS SINCE JULY 21 THAT ADVANCE IS ALSO WHY SOME HAD EXPECTED INVESTORS WOULD START TO TAKE PROFITS BUT THE RALLY WAS WIDELY VIEWED AS HAVING SOME LIFE LEFT IN IT AND PARTICIPANTS DIDN'T WANT TO TAKE THE CHANCE OF LOSING OUT IN FRANKFURT THE DAX 30STOCK INDEX RALLIED 3915 POINTS TO PIERCE THE 1900 LEVEL FINISHING AT 190495 NEAR THE INTRADAY HIGH OF 190748 PARTICIPANTS SNAPPED UP STOCKS IN ANTICIPATION OF SWEEPING GAINS EVEN IF INTERRUPTED BY A CONSOLIDATION LIQUIDITY WAS HIGH AS FOREIGN AND GERMAN INSTITUTIONAL INVESTORS RUSHED TO INCREASE HOLDINGS BEFORE PRICES GO STILL HIGHER BUT IN PARIS STOCKS RETREATED ON PROFITTAKING FOLLOWING THE SURGE TO A RECORD IN THE PREVIOUS SESSION SOME PARTICIPANTS WERE SURPRISED THAT PRICES DIDN'T FALL HARDER ON THE HEELS OF WEDNESDAY'S 13 RALLY AND WERE ANXIOUS THAT THE MARKET COULD PLUMMET IF SENTIMENT ABOUT EXPECTED FRENCH INTERESTRATE CUTS SHIFTS AMSTERDAM SHARES GAINED BROADLY LIFTED BY A CONTINUED RUN MOSTLY BY FOREIGN INVESTORS ON SHARES SENSITIVE TO ECONOMIC CYCLES AS WELL AS FAVORABLE CORPORATE EARNINGS AND SUSTAINED DOLLAR STRENGTH IN MADRID PRICES POWERED HIGHER ON HOPES THAT SPAIN'S CENTRAL BANK TODAY WILL CUT ITS BENCHMARK INTEREST RATE FOR A SECOND TIME IN TWO WEEKS IN STOCKHOLM THE BROADBASED RALLY WAS SUPPORTED BY A STRONG DOLLAR A CUT IN THE KEY SWEDISH LENDING RATE TO 8 FROM 825 HAD LITTLE EFFECT AS ANTICIPATED LOWER RATES HAD ALREADY BEEN FACTORED INTO STOCK PRICES IN ZURICH FAVORABLE BANKSECTOR EARNINGS SET OFF A SCRAMBLE INTO FINANCIAL STOCKS STARTING A RALLY THAT BROADENED INTO INDUSTRIALS AND CHEMICALS SUPPORTED BY A STRONG DOLLAR IN BRUSSELS PRICES BOUNCED UP BROADLY AS INVESTORS ANTICIPATED AN EVENTUAL DOWNTURN IN RATES THE BEL20 INDEX ENDED AT ITS HIGHEST LEVEL SINCE THE GAUGE WAS BEGUN JAN 1 1991 THE MARKET HIT ITS HIGHS AFTER STRONG SHOWINGS FOR NIKKEI FUTURES IN CHICAGO AND OVERSEAS MARKETS BUT RETREATED WHEN IT BECAME CLEAR THE SUMMER HOLIDAYTHINNED DEALINGS WOULDN'T SEND THE NIKKEI TO 21000 STILL CURRENCY AND BOND MARKET MOVEMENTS BOLSTERED STOCK INVESTORS THE YEN HIT A RECORD HIGH AGAINST THE DOLLAR KEEPING EXPECTATIONS ALIVE THAT THE BANK OF JAPAN WILL HAVE TO CUT RATES TO HELP EXPORTERS AND OFFSET THE DEFLATIONARY EFFECT ON THE ECONOMY JAPANESE BOND PRICES PUSHED HIGHER YET INSTITUTIONAL INVESTORS SAID STOCK PRICES WERE FAR OVERPRICED AT CURRENT LEVELS GIVEN THE FUNDAMENTAL ECONOMIC WEAKNESS AND CITED PROSPECTS OF COMPANIES' DOWNWARD EARNINGS REVISIONS IN SYDNEY STOCKS ROSE TO A SIXYEAR HIGH LED UP BY STRONG BUYING BY FOREIGN INVESTORS PARTICULARLY OF BANKING STOCKS IN TAIPEI EQUITIES ROSE FOR THE FIFTH SESSION IN A ROW MOST FINANCIAL ISSUES THAT HAD JUST PASSED THEIR EXDIVIDEND DAY RECORDED ADVANCES IN SEOUL STOCKS LOGGED THEIR THIRD STRAIGHT CLIMB AFTER A LATE RALLY AMONG CORPORATE DEVELOPMENTS IN FRANKFURT LUFTHANSA SOARED SIX MARKS OR 45 TO 138 MARKS 8011 A SLIGHT SECONDQUARTER PROFIT WHICH HADN'T BEEN EXPECTED AND A CHANGE LAST SEPTEMBER IN ACCOUNTING PROCEDURES HELPED THE AIRLINE NARROW ITS FIRSTHALF PRETAX LOSS TO 221 MILLION MARKS 1282 MILLION FROM 542 MILLION MARKS A YEAR EARLIER LUFTHANSA HAD SECONDQUARTER PRETAX PROFIT OF 24 MILLION MARKS AS A RESULT OF COSTCUTTING MOVES ONE ANALYST ISSUED A BUY RECOMMENDATION ON THE EARNINGS REPORT IN MILAN AFTER THEY RESUMED TRADING FOLLOWING A TWODAY SUSPENSION FERRUZZI FINANZIARIA ENDED AT 299 LIRE 18 US CENTS AND ITS MONTEDISON AT 710 AFTER A TEMPORARY HALT BECAUSE OF ORDER IMBALANCES DRAGGED THE OVERALL MARKET DOWN SHARES OF FERRUZZI A FINANCIALLY DEVASTATED AGROINDUSTRIAL AND CHEMICAL COMPANY INITIALLY PLUNGED 75 BUT REBOUNDED ENDING OFF 45 FROM THE PREVIOUS CLOSE IN ZURICH UNION BANK OF SWITZERLAND RALLIED 22 SWISS FRANCS OR 18 TO 1221 FRANCS 79621 FIRSTHALF GROUP PROFIT SOARED 89 TO 129 BILLION FRANCS 8399 MILLION ANALYSTS HAD EXPECTED AN INCREASE BETWEEN 35 AND 50 AND THEY INCREASED THEIR 1993 PROFIT FORECASTS THOUGH UNION BANK SAID SECONDHALF RESULTS WOULD BE GOOD BUT WOULDN'T EQUAL THAT OF THE FIRST SIX 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 9308130087 930720 CLASS OF DISTINCTION WOMEN FIND SUCCESS AFTER HARVARD LAW '59 DESPITE THE DIFFICULTIES JUDGE GINSBURG'S CLASSMATES BALANCED LIVES CAREERS HELPED SHAPE PROFESSION ECSTATIC' OVER APPOINTMENT BY JILL ABRAMSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN THE HARVARD LAW SCHOOL CLASS OF 1959 GATHERED FOR ITS 25TH REUNION ONE OF THE CLASS OFFICERS TRIED TO HERD THE GROUP TOGETHER FOR A PHOTOGRAPH WE WANT MEMBERS OF THE CLASS AND THEIR WIVES HE ORDERED WHAT DO YOU MEAN WIVES INQUIRED A SARCASTIC VOICE AS THE REST OF THE CLASS ERUPTED IN LAUGHTER THE VOICE BELONGED TO RUTH BADER GINSBURG ONE OF ONLY 10 WOMEN IN A CLASS OF 504 MEN AT THE TIME OF HER CLASSMATE'S FAUX PAS JUDGE GINSBURG WAS SERVING ON THE CIRCUIT COURT OF APPEALS IN WASHINGTON TODAY AT AGE 60 JUDGE GINSBURG IS BEGINNING CONFIRMATION HEARINGS FOR HER APPOINTMENT TO THE US SUPREME COURT HERS MAY BE AMONG THE MOST NOTABLE BUT COLLECTIVELY THE LIFE EXPERIENCES OF THE WOMEN IN HARVARD LAW SCHOOL'S CLASS OF 1959 PRESENT A STRIKING PORTRAIT OF GENERATIONAL CHANGE THESE WOMEN BEGAN LAW SCHOOL WHEN WOMEN LAWYERS REPRESENTED LESS THAN 2 OF THEIR PROFESSION TODAY AS MANY OF THE CLASSMATES ARE APPROACHING RETIREMENT AGE WOMEN ACCOUNT FOR 20 OF ALL US LAWYERS MOST OF THE WOMEN IN THE CLASS ENDED UP FOLLOWING CAREER PATHS SIMILAR TO THE MEN LAW FIRM PARTNERS JUDGES ACADEMICS PUBLICINTEREST LAWYERS AND INHOUSE CORPORATE ATTORNEYS IN THE LATE 1970S AND 1980S MANY FOUND THEMSELVES ESTABLISHED AS THE SENIOR WOMEN IN THEIR FIELD AND ENJOYING THE BENEFITS HARVARD OPENED ITS PRESTIGIOUS LAW SCHOOL TO WOMEN IN 1950 AND THE ENSUING SIX YEARS BEFORE THE CLASS OF '59 MATRICULATED WERE A PERIOD OF ADJUSTMENT I WAS THE ONE WHO LED THE FACULTY TO RECOMMEND TO THE HARVARD CORPORATION TO ADMIT WOMEN RECALLS ERWIN GRISWOLD FORMERLY SOLICITOR GENERAL IN THE JOHNSON ADMINISTRATION WHO WAS THE LAW SCHOOL'S DEAN AT THE TIME IT TOOK SOME DOING BEGINNING WITH THEIR VERY FIRST TERM IN 1956 WOMEN OF THE CLASS OF '59 RECALL ENCOUNTERING OVERT HOSTILITY DOWN TO A MALE STUDENT GROWLING I'M MARRIED IN RESPONSE TO CLASSMATE VIRGINIA NORDIN'S SIMPLE HELLO THERE ALSO WAS THE INSTITUTION OF LADIES DAY HOSTED BY ONE OF THE SCHOOL'S PROPERTY PROFESSORS WHERE ONLY WOMEN WERE CALLED ON DURING LECTURES WHILE ALL THE MEN STARED AT THEM THE WOMEN WERE REALLY THROWN TO THE LIONS RECALLS DANIEL REZNICK A MEMBER OF THE CLASS WHILE HE NOW VIEWS CUSTOMS SUCH AS LADIES DAY AS REPREHENSIBLE MR REZNICK EXPLAINS YOU ACCEPTED EVERYTHING BACK THEN IT WAS THE WAY THINGS WERE SUPPOSED TO BE NEVERTHELESS THESE WOMEN MADE INDELIBLE CHANGES AT HARVARD DURING THEIR SECOND YEAR MARILYN ROSE WAS DENIED MEMBERSHIP IN HARVARD'S THEN ALLMALE PUBLIC DEFENDERS PROGRAM IT WAS OUTRAGEOUS SHE RECALLS THE ANGER STILL EVIDENT IN HER VOICE THE LAW SCHOOL ACTUALLY SANCTIONED DISCRIMINATION AGAINST WOMEN BUT THE NEXT YEAR AFTER SHE AND ANOTHER WOMAN STUDENT LOBBIED FOR CHANGE WOMEN WERE ACCEPTED IN THE PROGRAM AND FOR HER PART JUDGE ROSE SPENT MUCH OF HER CAREER AS A PUBLICINTEREST LAWYER CHANGE CAME IN MORE DOWNTOEARTH WAYS AS WELL PREGNANT WITH HER SECOND CHILD DURING EXAMS RHODA ISSELBACHER WAS CONCERNED THAT THE ONLY LADIES' ROOM ON CAMPUS WAS SEVERAL BUILDINGS AWAY FELLAS SHE ANNOUNCED I'M GOING TO USE YOUR BATHROOM DOWNSTAIRS THE MEN APPLAUDED AFTER GRADUATION THERE WERE MORE HURDLES NOTABLY IN FINDING A JOB THOUGH SHE TIED FOR FIRST IN HER GRADUATING CLASS JUDGE GINSBURG RECALLED NOT A SINGLE LAW FIRM IN THE ENTIRE CITY OF NEW YORK BID FOR MY EMPLOYMENT AND SHE WASN'T ALONE FLORA SCHNALL SAYS HER ONLY COMFORT AT THE TIME WAS KNOWING RUTH WHO WAS SO SMART WAS HAVING TROUBLE TOO IN ST LOUIS ALICE STROH WHO HAD BEEN PHI BETA KAPPA AT THE UNIVERSITY OF MISSOURI AND HAD TOP LAWSCHOOL GRADES WAS REBUFFED BY ALL THE LAW FIRMS THERE I WAS VERY HURT SHE RECALLS BUT IN THOSE YEARS YOU PRETTY MUCH SUFFERED IN SILENCE MRS STROH'S GENDER HELPED HER LAND A JOB IN MONSANTO CORP'S LEGAL DEPARTMENT THE COMPANY PARTICULARLY WANTED TO HIRE A WOMAN MOST OF HER CLASSMATES FOUND POTENTIAL EMPLOYERS ASSUMING A WOMAN'S CAREER WOULD TAKE A BACK SEAT TO HER HUSBAND'S DURING JOB INTERVIEWS MS NORDIN FOUND HERSELF QUIZZED ABOUT WHETHER YOU WERE GOING TO GET MARRIED AND HAVE A BABY SHE SAYS YOU'D END UP DISCUSSING YOUR THEORIES ON BIRTH CONTROL AND NOTHING ABOUT YOUR CREDENTIALS INDEED JUDGE GINSBURG TRANSFERRED FROM HARVARD TO COLUMBIA UNIVERSITY IN HER FINAL YEAR OF LAW SCHOOL IN DEFERENCE TO HUSBAND MARTIN'S CAREER AS A TAX ATTORNEY MR GINSBURG IN TURN FOLLOWED HIS WIFE TO WASHINGTON WHEN SHE WAS NAMED TO THE FEDERAL BENCH NOT ALL OF HER CLASSMATES COULD FOLLOW CAREER OPTIONS THAT WAY AND LOOKING BACK SOME HAVE SECOND THOUGHTS ABOUT CHOICES THEY DIDN'T QUESTION AT THE TIME MS NORDIN NOW SEPARATED CLERKED FOR A FEDERAL JUDGE AFTER GRADUATING THEN FOLLOWED HER HUSBAND A JOURNALIST AND BUSINESSMAN AROUND THE COUNTRY AS HE SHIFTED JOBS THE CONSTANT MOVES MADE IT DIFFICULT TO ADVANCE IN THE LAW AND MS NORDIN NOW TEACHES EDUCATION AND LAW AT THE UNIVERSITY OF KENTUCKY I STARTED AT THE TOP SHE JOKES AND WORKED MY WAY TO THE BOTTOM BUT SHE RECENTLY WON TENURE AT KENTUCKY AND SAYS SHE FEELS LUCKY SHE HAS BEEN ABLE TO JUMPSTART HER PROFESSIONAL LIFE WHILE MAINTAINING A CLOSE RELATIONSHIP WITH HER CHILDREN FOR CAROL BROSNAHAN PLANNING HER CAREER AROUND HER HUSBAND'S HAS BEEN A MATTER OF PRAGMATISM HE IS A TRIAL LAWYER WHO OFTEN TRAVELS AND SHE FELT THE NEED TO WORK CLOSE TO HOME IN BERKELEY CALIF TO BE NEAR THEIR THREE CHILDREN SUCH ARRANGEMENTS WERE EXPECTED SHE SAYS IT WAS EASIER IN THAT A LOT OF DECISIONS WERE MADE FOR YOU MRS BROSNAHAN NOW A MUNICIPAL JUDGE SAYS YOU DIDN'T DELAY HAVING CHILDREN YOU DIDN'T PUT YOUR PROFESSIONAL CONSIDERATIONS FIRST IT WASN'T A MAJOR PERSONAL CONFLICT THAT WOMEN OF YOUNGER GENERATIONS GO THROUGH BUT A WOMAN WHO STEPPED AWAY FROM THE FAMILIAR PATH HAD TO FIGURE THINGS OUT FOR HERSELF MARRIED TO A PHYSICIAN IN BOSTON MRS ISSELBACHER SETTLED FOR PARTTIME WORK AT A SMALL LAW FIRM SO THAT SHE COULD PRACTICE LAW AND REMAIN A HANDSON MOTHER A CHOICE SHE NOW SAYS THAT ENABLED HER TO HAVE THE BEST OF BOTH WORLDS YET MRS ISSELBACHER ALSO RECALLS ONCE HAVING TO RUSH AWAY FROM A CLIENT TO TEND TO ONE OF HER KIDS WHO HAD BEEN BITTEN BY A NEIGHBOR'S DOG STUCK IN TRAFFIC SHE REMEMBERS THINKING MY HUSBAND'S A DOCTOR WHY ISN'T HE ON HIS WAY TO THE CHILDREN'S HOSPITAL' BUT FATHERS DIDN'T DO THAT BACK THEN MRS STROH GAVE UP HER POSITION AT MONSANTO AFTER THE BIRTH OF HER FIRST CHILD AND SHE STAYED OUT OF THE WORK FORCE ALTOGETHER UNTIL HER SECOND CHILD LEFT FOR COLLEGE BY THEN HER MARRIAGE HAD BROKEN UP AND GOING BACK TO WORK WAS A NECESSITY SHE ANSWERED AN ADVERTISEMENT FOR PARALEGALS CERTAIN THAT IF SHE APPROACHED LAW FIRMS ABOUT HIRING HER AS AN ATTORNEY THEY'D LAUGH A LOT IN 1986 SHE BECAME A PARALEGAL IN THE ESTATES DEPARTMENT OF A LARGE ST LOUIS LAW FIRM BUT THE PARTNERS THERE QUICKLY RECOGNIZED SHE COULD DO A LAWYER'S WORK AND PROMOTED HER TO ASSOCIATE MRS STROH HOWEVER REBUFFED THE FIRM'S OFFER TO PUT HER ON THE PARTNERSHIP TRACK I CAN'T KEEP UP WITH THE KIDS SHE SAYS OF COLLEAGUES IN THE FIRM WHO ASPIRE TO BE MADE PARTNERS SHE SAYS SHE DOESN'T REGRET DERAILING HER CAREER TO DEVOTE HERSELF TO HER FAMILY I DON'T SEE HOW THESE PEOPLE MANAGE TO PUT UP WITH THE STRESS OF PRACTICING AND RAISING A FAMILY IT LOOKS EXHAUSTING TO ME SHE SAYS ALTHOUGH SHE EXPRESSES SOME WORRY ABOUT HAVING DONE SO LITTLE WITH MY LAW DEGREE MRS STROH ADDS I THINK I WAS LUCKY TO LIVE IN THE TIMES I DID WHEN IT WASN'T EXPECTED THAT WE DO ALL THESE THINGS EVEN THOSE WHOSE CAREERS WERE UNCOMPLICATED BY FAMILY CONCERNS FOUND ADVANCEMENT IN LAW HARDER FOR WOMEN THAN IT WAS FOR MEN IN 1970 FLORA SCHNALL LEFT MILBANK TWEED HADLEY & MCCLOY AFTER ALMOST A DECADE BECAUSE SHE BELIEVED THE WALL STREET FIRM WOULD NOT MAKE A WOMAN PARTNER SHE EARNED HER PARTNERSHIP ELSEWHERE AND IN 1984 RETURNED TO MILBANK AND MADE PARTNER BY WHICH TIME OTHER WOMEN HAD BROKEN THE BOUNDARY SOME OF THE VOICES OF THE CLASS OF '59 TURN TO ICE WHEN DISCUSSING PROBLEMS THEY CONFRONTED EARLY IN THEIR CAREERS MS NORDIN QUIT A JOB SHE LOVED AS LAWYER FOR A NEW YORK SHIPPING COMPANY WHEN HER MUCH OLDER BOSS MADE SEXUAL ADVANCES I DON'T KNOW HOW I'D HANDLE THAT SITUATION EVEN TODAY SHE SAYS JEAN SHEA WHO WAS WORKING AT THE FEDERAL RESERVE BANK IN NEW YORK VIVIDLY REMEMBERS THE HUMILIATION SHE FELT DURING A SPEAKING ENGAGEMENT AT THE THENALLMALE NEW YORK STOCK EXCHANGE I HAD TO GO IN THE BACK ENTRANCE BY THE GARBAGE CANS AND COME UP THE FREIGHT ELEVATOR TO THE LUNCHEON AT WHICH I WAS THE FEATURED SPEAKER SHE RECALLS SHE COMPLAINED ABOUT THE INCIDENT TO HER BOSS WHO TOLD THE EXCHANGE HE WOULD SEND NO MORE SPEAKERS UNTIL THE POLICY WAS CHANGED IN THE 1970S JUDGE BROSNAHAN HAD TO TRAIN THE MAN WHO BECAME HER SUPERVISOR AT THE CONTINUING EDUCATION OF THE BAR PROGRAM RUN JOINTLY BY THE CALIFORNIA BAR ASSOCIATION AND THE UNIVERSITY OF CALIFORNIA IT WAS REMARKABLY COMMON FOR WOMEN LIKE MYSELF WITH YOUNG CHILDREN TO BE DISCRIMINATED AGAINST SHE SAYS TO TRAIN YOUR SUPERVISORS AND THEN BE DISMISSED BECAUSE YOU'RE A MOTHER BUT AS THEY LOOK BACK ON THEIR CAREERS MANY OF THE CLASSMATES SAY THEY CAN SEE EVIDENCE OF SLOWLY CHANGING ATTITUDES IT IS EVIDENCE THEY SAVOR AT THE FEDERAL RESERVE ONE OF THE SENIOR ATTORNEYS BLUNTLY TOLD MRS SHEA THAT HE DIDN'T THINK SHE SHOULD HAVE BEEN HIRED BECAUSE SHE WAS A WOMAN BUT MRS SHEA RECALLS HE WENT ON TO SAY THAT ONCE HIRED HE FELT IT WAS INCUMBENT ON HIM TO TREAT ME FAIRLY AS AN INDIVIDUAL SHE RECALLS OVER THE YEARS HE BECAME A STAUNCH SUPPORTER AND HE DIDN'T OPPOSE THE HIRING OF OTHER WOMEN HE WAS PERSUADED BY THE COMPETENCE OF THE INDIVIDUAL MS SCHNALL LIKES TO TELL OF THE TIME IN THE 1970S WHEN SHE FOUND HERSELF GENERATING CONSIDERABLE BUSINESS FOR HER LAW FIRM CONSIDERED UNUSUAL FOR WOMEN LAWYERS AND AT MILBANK SHE WORKED WITH A MORE SENIOR PARTNER WHOSE DAUGHTER WAS A DOCTOR SO HE WAS COMFORTABLE DEALING WITH PROFESSIONAL WOMEN THE OLDER PARTNER HELPED MS SCHNALL DEVELOP HER PRACTICE BY GENEROUSLY SHARING CLIENTS WITH HER SHE SAYS IN LOS ANGELES MRS SHEA FOUND HERSELF HIRING AND TRAINING YOUNGER WOMEN LAWYERS AS HEAD OF THE LAW DEPARTMENT OF THE WELLS FARGO BANK JUDGES ROSE AND BROSNAHAN WERE IN THE VANGUARD AS MORE WOMEN WON JUDICIAL APPOINTMENTS MRS STROH AND MS NORDIN WERE ABLE TO RESTART THEIR CAREERS AFTER FOCUSING ON FAMILY THE WOMEN OF THE CLASS OF '59 ALL AGREE THAT SOME OF THE PROBLEMS THEY FACED STILL LINGER BUT THEY ALSO AGREE THAT TODAY'S WOMEN GRADUATES OF HARVARD LAW SCHOOL CONFRONT A MUCH MORE FAVORABLE WORK ENVIRONMENT IN PART CREATED BY THE LEGAL VICTORIES JUDGE GINSBURG ACHIEVED AS HEAD OF THE WOMEN'S RIGHTS PROJECT AT THE AMERICAN CIVIL LIBERTIES UNION IT WAS NOT EASY TO BE IN THIS PROFESSION AS A WOMAN IN ANY CAPACITY SAYS JUDGE BROSNAHAN IT TOOK COURAGE TO TAKE THE POSITIONS RUTH DID AND FIGHT FOR THE ISSUES SHE DID WHEN THEY WERE NOT FASHIONABLE WE ARE ALL ECSTATIC ABOUT HER APPOINTMENT ALSO CELEBRATING IS DEAN GRISWOLD HIMSELF WHO NEVER IMAGINED HE HAD A FUTURE SUPREME COURT JUSTICE SITTING BEFORE HIM AT A WELCOMING TEA FOR INCOMING WOMEN LAW STUDENTS IN 1956 GATHERING THE WOMEN AROUND HIM ON FOLDING CHAIRS THE DEAN HAD EACH ONE STATE WHY SHE WAS AT HARVARD LAW SCHOOL OCCUPYING A SEAT THAT COULD HAVE GONE TO A MAN JUDGE GINSBURG FOR HER PART SAYS SHE MUMBLED AN ANSWER ABOUT HOW STUDYING LAW WOULD HELP HER UNDERSTAND HER HUSBAND'S WORK MOST OF HER CLASSMATES CAN'T REMEMBER THEIR RESPONSE BUT IN THEIR LIVES SAYS MRS SHEA THE WOMEN IN THE CLASS OF '59 HAVE ALL ANSWERED IT WE'VE ALL PRACTICED AND USED OUR DEGREES AND HAD PRETTY DISTINGUISHED CAREERS NOW AT 89 DEAN GRISWOLD WORKS BESIDE SEVEN WOMEN PARTNERS IN THE WASHINGTON OFFICE OF HIS LAW FIRM A SPEECH IN WHICH HE PRAISED JUDGE GINSBURG HELPED TIP PRESIDENT CLINTON IN HER FAVOR ACCORDING TO SEVERAL PEOPLE INVOLVED IN THE SELECTION OF CANDIDATES FOR THE SUPREME COURT APPOINTMENT RECENTLY DEAN GRISWOLD ATTENDED A CONFERENCE OF THE PRESTIGIOUS AMERICAN LAW INSTITUTE WHERE JUDGE GINSBURG WAS SITTING ON THE DAIS AND A KEYNOTE SPEECH WAS DELIVERED BY ATTORNEY GENERAL JANET RENO HARVARD LAW '63 THE ATTORNEY GENERAL WHO FONDLY RECOGNIZED THE DEAN IN HER REMARKS ACKNOWLEDGED THAT HIS INFAMOUS QUESTION AT THE LAW SCHOOL TEA SERVED AS A POSITIVE CHALLENGE PUSHING HER ONWARD IN HER CAREER THAT IS EXACTLY WHAT THE DEAN INTENDED HE SAYS I WAS EGGING THEM ON SEE RELATED LETTER LETTERS TO THE EDITOR WELCOMING HOSTILITIES WSJ AUG 13 1993 9307200115 YY93 MM08 9308130081 930716 PITY THE POOR LANDLORDS OF CAMBRIDGE BY DAMIAN SCHLOMING STRINGENT GOVERNMENT REGULATIONS THAT ARE DESIGNED TO HELP THE POOR RARELY DO NOWHERE IS THIS BETTER ILLUSTRATED THAN IN CAMBRIDGE MASS THE TENANT ADVOCACY PROJECT IS ONE OF HARVARD LAW SCHOOL'S CLINICAL PROGRAMS THAT GIVES STUDENTS EXPERIENCE BY SUPPOSEDLY OFFERING FREE LEGAL HELP TO THE POOR BUT IF TAP'S INCOME GUIDELINES WERE AS LOW AS THOSE FOR OTHER LEGAL SERVICE AGENCIES FEW RENTCONTROLLED TENANTS WOULD BE POOR ENOUGH TO QUALIFY EXPLAINED MARSHA PETERS AN ATTORNEY PAID BY HARVARD UNIVERSITY TO ADVISE TAP STUDENTS WE WOULD BE OUT OF BUSINESS SHE SAID THEN WHAT IS TAP'S MISSION WHILE ATTENDING RENT CONTROL BOARD MEETINGS WITH MY MOTHER A MEMBER OF THE SMALL PROPERTY OWNERS' ASSOCIATION OF CAMBRIDGE I HAVE SEEN TAP'S REAL AGENDA USING THE INTRICACIES OF THE CITY'S RENT CONTROL LAWS TO HASSLE POOR INDIVIDUALS STRUGGLING TO GAIN FINANCIAL INDEPENDENCE THROUGH THE OWNERSHIP OF A SCRAP OF PRIVATE PROPERTY THESE LANDLORDS ARE TYPICALLY BLUECOLLAR MINORITY OR IMMIGRANT AND OFTEN ELDERLY HOWEVER TAP CARES ONLY ABOUT A PERSON'S STATUS AS A LANDLORD OR A TENANT REGARDLESS OF HIS FINANCIAL NEED TAKE THE CASE OF CARL AND BARBARA PILGRIM LANDLORDS WHOSE PRINCIPAL SOURCE OF INCOME WAS A 700AMONTH DISABILITY PENSION A FEW YEARS AGO WHEN THEY NEEDED MORE SPACE FOR MRS PILGRIM'S AILING MOTHER TO MOVE IN WITH THEM AND THEIR SON THE COUPLE REMOVED THE WALL BETWEEN THEIR OWN APARTMENT AND A VACANT APARTMENT IN THEIR FOURFAMILY RENTCONTROLLED BUILDING BUT THIS MERGER VIOLATED AN ORDINANCE OF THE CITY'S RENTCONTROL LAWS PROHIBITING OWNERS FROM COMBINING UNITS WITHOUT PERMISSION CONSEQUENTLY THE PILGRIMS FOUND THEMSELVES ON TRIAL AT THE RENT BOARD ACCORDING TO THE RENT BOARD HEARING REPORT TAP ARGUED THAT IT WAS AGAINST THE PUBLIC INTEREST FOR THE PILGRIMS TO MERGE THE TWO UNITS BECAUSE IT WOULD AGGRAVATE THE SHORTAGE OF HOUSING AND WORK TO THE DETRIMENT OF LOWTOMIDDLEINCOME TENANTS IN CAMBRIDGE AFTER ALL TAP SAID MRS PILGRIM'S MOTHER COULD SLEEP IN THE DINING ROOM ULTIMATELY TAP SUGGESTED A COMPROMISE LET THE MOTHER MOVE IN WITHOUT COMBINING THE UNITS ACCORDING TO THE REPORT THIS WOULD MEAN YOU WOULD HAVE TO GO DOWNSTAIRS OUT THE FRONT DOOR AND UPSTAIRS TO GET TO THE TWO APARTMENTS BUT THIS WOULD BE A LOT CLOSER THAN MISSISSIPPI WHERE THE MOTHER THEN LIVED TAP EVENTUALLY LOST THE CASE BUT IT DELAYED THE PILGRIMS' PETITION FOR A YEAR AND COST THEM 1000 IN LEGAL FEES IN ANOTHER CASE TAP GAVE FREE LEGAL AID TO THREE TENANTS AN INDEPENDENT TELEVISION PRODUCER A COLLEGE PROFESSOR AND A PROFESSIONAL GRAPHICS DESIGNER IN A SUIT AGAINST THEIR LANDLORD AN UNEMPLOYED CZECHOSLOVAKIAN IMMIGRANT TAP HOPED TO PUT THE LANDLORD'S THREEFAMILY HOUSE UNDER RENT CONTROL AND WIN A 140000 WINDFALL FOR ITS NEEDY CLIENTS AFTER TWO YEARS OF LITIGATION THE LANDLORD FINALLY WON AT THE SAME TIME HE LOST MORE THAN 20000 IN UNCOLLECTED RENT AND LEGAL FEES TAP'S ANTILANDLORD HOSTILITY IS APPARENT IN THE MANY CASES I HAVE SEEN WHERE NO TENANTS ARE INVOLVED IN ONE CASE TAP ARGUED AGAINST AN OWNER ACCUSED OF LIVING IN HIS OWN CONDOMINIUM AN ACT THAT VIOLATES THE CITY'S REMOVAL PERMIT ORDINANCE PROHIBITING OWNEROCCUPANCY OF CERTAIN CONDOMINIUMS THE DEBATE WAS OVER HOW MUCH THE OWNER SHOULD COMPENSATE THE CITY FOR THE DAMAGE HE CAUSED BY LIVING IN HIS CONDOMINIUM INSTEAD OF RENTING IT OUT AT BELOWMARKET RENTS THE RENT BOARD WANTED TO EVICT THE OWNER IMMEDIATELY AND MAKE HIM PAY THE DIFFERENCE BETWEEN THE CONTROLLED RENT AND ITS MARKETVALUE RENT FOR THE EIGHT YEARS HE LIVED THERE ABOUT 30000 TAP THOUGHT THE RENT BOARD WAS TOO LENIENT AND ARGUED THAT THE OWNER SHOULD PAY THE ENTIRE MARKET RENT PLUS DOUBLE PUNITIVE DAMAGES IN ORDER TO DETER FUTURE OWNERS FROM BREAKING THE LAW THIS TOTALED ABOUT 200000 FAR MORE THAN THE VALUE OF THE CONDOMINIUM THE CASE IS STILL PENDING TAP ALSO OPPOSED A 78YEAROLD HOMEOWNER WHO NEEDED THE RENT BOARD'S PERMISSION TO RETIRE FROM RENTING OUT ROOMS IN HIS HOUSE IN CAMBRIDGE IT IS ILLEGAL TO GET OUT OF THE RENTAL BUSINESS WITHOUT PERMISSION THE LAW STUDENTS THEMSELVES TOOK PITY ON THE OWNER BUT TAP'S ATTORNEYADVISERS OVERRULED THEM AND ARGUED AGAINST GRANTING PERMISSION EVENTUALLY THE HOMEOWNER WAS ALLOWED TO STOP RENTING OUT ROOMS BUT UPON HIS DEATH THE BUILDING WILL REVERT TO A RENTCONTROLLED ROOMING HOUSE NOT ONLY ARE FEW TENANTS INVOLVED IN TAP'S CASES BUT VERY FEW LAW STUDENTS PARTICIPATE IN RENT BOARD HEARINGS HARVARD CLAIMS THAT TAP IS A STUDENTRUN VOLUNTEER PROGRAM THAT STUDENTS JOIN OUT OF THEIR OWN DESIRE TO HELP THE POOR OBTAIN AFFORDABLE HOUSING AT RENT BOARD HEARINGS HOWEVER THE STUDENTS THEMSELVES OFTEN RECITE JUST A SHORT PREPARED OPENING STATEMENT AND THEN TAP'S ATTORNEYADVISERS TAKE OVER THE PROCEEDINGS SOMETIMES THE ADVISERS SHOW UP AND ARGUE CASES WITHOUT BRINGING ANY STUDENTS CLEARLY TAP'S PURPOSE IS NEITHER TO HELP THE POOR NOR TO TEACH STUDENTS ITS REAL AGENDA DRIVEN BY A CULTURAL BIGOTRY TOWARD LANDLORDS IS TO TRANSFER OWNERSHIP OF RENTAL HOUSING FROM PRIVATE FAMILY OWNERS TO THE GOVERNMENT ITSELF OR GOVERNMENTFUNDED NONPROFIT AGENCIES THIS OPPOSITION TO PRIVATE PROPERTY DOES NOT EXTEND OF COURSE TO THE WEALTHY SINGLEFAMILY HOMEOWNERS IN CAMBRIDGE'S POSH BRATTLE STREET NEIGHBORHOOD WHERE SO MANY HARVARD FACULTY LIVE MR SCHLOMING A 19YEAROLD RESIDENT OF CAMBRIDGE MASS IS BEING HOMESCHOOLED BY HIS PARENTS SEE RELATED LETTERS LETTERS TO THE EDITOR HARVARD LAW'S LANDLORDTENANT WARS WSJ AUG 13 1993 9307160084 YY93 MM08 9308130078 930721 LETTERS TO THE EDITOR STOP THE PRIVATIZING IT APPEARS YOU WILL GO TO ANY LENGTH AND FIND ANY EXCUSE TO CALL FOR PRIVATIZATION OF THE POSTAL SERVICE AS YOU DID IN YOUR JUNE 29 EDITORIAL STOP THE KILLING POSTAL PRIVATIZATION IS A CONCEPT WHOSE DAYS HAVE PASSED INDEED MARKETPLACE PRESSURES AND THE ONGOING COMPETITION WE FACE IN EVERY CLASS OF MAIL WILL DICTATE THE ULTIMATE FATE OF THE SERVICE IN FACT THE STEPS TAKEN BY POSTMASTER GENERAL MARVIN RUNYON THAT REDUCED OVERHEAD POSITIONS BY 30000 BREAKING THE THREEYEAR HISTORY OF RATE HIKES MUST BE PARTICULARLY GALLING TO JOURNAL EDITORIAL WRITERS WITH BUSINESSLIKE PRACTICES BEING EMPLOYED SUCCESSFULLY IN POST OFFICES THERE IS NOTHING EXCEPT SHOOTING RAMPAGES FOR THE JOURNAL TO USE TO ISSUE ITS LATEST SIREN CALL FOR PRIVATIZATION WE FIND THE LOGIC OF YOUR EDITORIAL SPECIOUS IT IGNORES THE REALITY OF WORKPLACE VIOLENCE TODAY THE INFERENCE THAT OUR UNIONS ARE A CAUSE OF VIOLENCE IS PATENTLY OFFENSIVE YOUR EDITORIAL FURTHER TESTS ITS CREDIBILITY BY CLAIMING THE GIST OF A NEW YORK TIMES ARTICLE IN MAY WAS THAT POSTAL EMPLOYEES WORK TOO HARD AND SOMETIMES FLIP OUT THAT OVERSIMPLIFIED SUMMATION SIGNIFICANTLY FAILS TO MENTION A TIMES EDITORIAL OF THE SAME WEEK THAT CONCLUDED NO REASONABLE PERSON WOULD BLAME THE POSTAL SERVICE FOR MURDER WITH 700000 WORKERS THE LARGEST CIVILIAN WORK FORCE IN THE NATION EPISODES OF VIOLENCE AND MENTAL INSTABILITY ARE IMPOSSIBLE TO AVOID MOST EXPERT BEHAVIORAL PSYCHOLOGISTS TELL US THAT VIOLENCE IN THE WORKPLACE IS DEMONSTRATIVE OF A PECULIAR SOCIETAL DISORDER THAT FEEDS ON THE AVAILABILITY OF GUNS THAT THE POTENTIAL FOR VIOLENCE IS IN EVERY WORKPLACE AND THAT WORKPLACE CONDITIONS DO NOT CAUSE ANYONE TO KILL UNLESS THEY ALREADY SUFFER FROM SOME MENTAL DISORDER FRANKLY WE HOPE FEDERAL EXPRESS AND UPS NEVER EXPERIENCE EPISODES OF WORKPLACE VIOLENCE UNFORTUNATELY SCORES OF PRIVATESECTOR COMPANIES HAVE JUST THIS YEAR THREE EMPLOYEES DIED IN TAMPA FLA A FOURTH WAS KILLED IN EL DORADO ARK A FIFTH WAS SHOT TO DEATH IN CHICAGO AND A SIXTH WAS KILLED IN HOUSTON WE ARE CONTINUING OUR SEARCH FOR MORE ANSWERS THAT WILL ELIMINATE VIOLENCE FROM OUR WORKPLACE WE KNOW WE DON'T HAVE ALL THE ANSWERS AND CLEARLY THE JOURNAL DOESN'T EITHER ONE THING WE DO KNOW IS THAT CORPORATE AMERICA NEEDS TO COME TO GRIPS WITH THE GROWING PHENOMENON OF SETTLING GRIEVANCES WITH GUNS AND FISTS PERHAPS THE WALL STREET JOURNAL COULD TAKE A LEADERSHIP ROLE IN THIS ISSUE RATHER THAN EXPLOITING IT TO EXERCISE ITS ANTIPOSTAL BIAS IN A CALL FOR PRIVATIZATION YOUR EDITORIAL IS AN IGNORANT OUTBURST HAVE YOU BOTHERED TO LOOK AT THE FACTS RUDE SERVICE SURVEYS BY REPUTABLE POLLSTERS SHOW THAT THE OVERWHELMING MAJORITY OF AMERICANS HAVE A FAVORABLE POSITIVE IMPRESSION OF THE POSTAL SERVICE NO ONE CAN DENY THE TERRIBLE INCIDENTS WHERE 34 PEOPLE HAVE DIED IN TRAGEDIES IN POSTAL FACILITIES OVER THE PAST 10 YEARS HOWEVER SOME OF THE PERPETRATORS SUFFERED FROM SEVERE PSYCHOLOGICAL DISORDERS THAT SHOULD HAVE BEEN RECOGNIZED SO THAT THEY COULD HAVE RECEIVED PROFESSIONAL ATTENTION MOREOVER THERE HAS BEEN VIVID DOCUMENTATION ON NETWORK TV PROGRAMS OF HOW POSTAL EMPLOYEES ARE PUSHED TO PERFORM AT UNREALISTIC PRODUCTIVITY LEVELS IN 1993 MANY POSTAL FACILITIES STILL OPERATE IN A SWEATSHOP ENVIRONMENT THAT MISERABLY FAILS THE OSHA STANDARDS THAT PRIVATE INDUSTRY IS SUPPOSED TO FOLLOW JOBS FOR LIFE THERE ARE MANY WAYS IN WHICH A POSTAL EMPLOYEE CAN BE FIRED MANAGERS AND SUPERVISORS WRITE UP OUR MEMBERS DAILY FOR THE SLIGHTEST INFRACTIONS IN 1993 MANY OF OUR MEMBERS MUST ASK PERMISSION TO GO TO THE BATHROOM AND THEN THEY'RE GIVEN A RIDICULOUS TIME LIMIT TO INFER AS YOU DO QUITE CLEARLY THAT EFFECTIVE POSTAL UNIONS ARE AT LEAST IN PART RESPONSIBLE FOR THE SHOOTINGS AND KILLINGS IN COMMENT INCIDENTS OF POSTAL VIOLENCE ARE RARE EXCEPTIONS RATHER THAN THE RULE TO CAST ASPERSION ON POSTAL UNIONS IS TO REFUTE THE MANY WORTHWHILE EFFORTS BY MEMBERS DAILY TO HELP THEIR COMMUNITIES SUCH AS THE COLLECTION BY LETTER CARRIERS OF NEARLY 12 MILLION POUNDS OF FOOD IN ONE DAY IN MAY FOR DELIVERY TO COMMUNITY FOOD BANKS A STORY IGNORED BY THE JOURNAL YOUR BROAD BRUSH OF HATRED AGAINST UNIONS ALSO IGNORES OUR EFFORTS TO RAISE FUNDS FOR MANY CHARITIES GIVE BLOOD TO RED CROSS BLOODBANKS RUN FOOD KITCHENS FOR THE HOMELESS HELP IN DISASTER RELIEF IT ALSO DISCOUNTS THE NUMEROUS DAYTODAY ACTS OF HEROISM BY UNIONIZED LETTER CARRIERS AS THEY WALK THEIR ROUTES THROUGHOUT THE NEIGHBORHOODS OF AMERICA SEE RELATED LETTER LETTERS TO THE EDITOR POST OFFICE STILL HAS A FIRSTCLASS MONOPOLY WSJ AUG 13 1993 9307210104 YY93 MM08 9308120151 930812 WHO'S NEWS EW SCRIPPS CO EW SCRIPPS CO CINCINNATI DOUGLAS R STERN 43 YEARS OLD FORMERLY PRESIDENT OF LOS ANGELESBASED NATIONAL RESEARCH GROUP A MARKET RESEARCH COMPANY FOR THE MOTION PICTURE INDUSTRY WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF UNITED MEDIA THE LICENSING AND SYNDICATION UNIT OF THIS MEDIA COMMUNICATIONS CONCERN HE SUCCEEDS ROBERT ROY METZ 64 WHO WILL SERVE AS CHAIRMAN OF THE UNIT UNTIL HIS RETIREMENT WHICH WILL OCCUR IN THE FIRST HALF OF 1994 9308120150 930812 WHO'S NEWS BIRMINGHAM STEEL CORP BIRMINGHAM STEEL CORP BIRMINGHAM ALA WILLIAM J CABANISS JR WAS ELECTED TO THE BOARD OF THIS STEELPRODUCING COMPANY EXPANDING BOARD MEMBERSHIP TO 12 MR CABANISS 55 YEARS OLD IS PRESIDENT OF PRECISION GRINDING INC A CLOSELY HELD METALMACHINING COMPANY BASED IN BIRMINGHAM 9308120149 930812 BUSINESS BRIEF INTERNATIONAL TOTALIZER SYSTEMS INC COMPANY SIGNS 17YEAR PACT WITH RUSSIAN LOTTERY FIRM INTERNATIONAL TOTALIZER SYSTEMS INC SAID IT SIGNED A 17YEAR CONTRACT WITH A RUSSIAN LOTTERY COMPANY TO LEASE AUTOMATED EQUIPMENT AND MANAGE LOTTERY GAMES IN RUSSIA INTERNATIONAL TOTALIZER SAID REVENUE FROM ITS PACT WITH ZODIAC ONLINE WILL BE BASED ON A PERCENTAGE OF THE LOTTERY TAKE AFTER WINNINGS THE COMPANY BASED IN CARLSBAD CALIF DECLINED TO DISCLOSE SPECIFIC PERCENTAGES BUT SAID LAST WEEK IT EXPECTS TO RECOUP AN INITIAL 65 MILLION INVESTMENT IN THE RUSSIAN SYSTEM WITHIN 3 1/2 YEARS INTERNATIONAL TOTALIZER A PROVIDER OF LOTTERY WAGERING AND TICKETING EQUIPMENT SAID IT EXPECTS BY SPRING OF NEXT YEAR TO INSTALL ONLINE SYSTEMS THAT WILL AUTOMATE EXISTING MANUALLY OPERATED LOTTO GAMBLING IN MOSCOW AND ST PETERSBURG 9308120148 930812 HEARD ON THE STREET HMO STOCKS TUMBLE ON HEALTHCARE REPORT LATER DISMISSED BY THE WHITE HOUSE AS A FAKE BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL HERE WE GO AGAIN HMO STOCKS TOOK A STAGGERING DIVE YESTERDAY IN PART BECAUSE OF FEARS STIRRED UP BY A REPORT DISMISSED LAST NIGHT BY THE WHITE HOUSE AS PHONY ON THE CLINTON HEALTHCARE REFORM PLAN BY DAY'S END THE HEALTHCARE PROVIDERS GROUP OF THE DOW JONES EQUITY MARKET INDEX WAS DOWN 475 THE BIG RETREAT FROM HEALTH MAINTENANCE ORGANIZATION STOCKS MAY HAVE THE RING OF FAMILIARITY AFTER ALL THESE STOCKS WERE PUMMELED IN THE SPRING BECAUSE OF CONCERNS ABOUT WHAT HEALTHCARE REFORM WOULD MEAN FOR HMOS AND EVEN THOUGH THE CLINTON ADMINISTRATION DISMISSED THE LATEST REPORT AS A FAKE IT LOOKS LIKE INVESTORS MAY BE IN FOR A REPEAT PERFORMANCE SOME BIG MONEY MANAGERS SAY THEY'RE STEERING CLEAR OF THE GROUP UNTIL THE DUST SETTLES SURROUNDING THE DESIGN OF THE CLINTON PROGRAM THE PROBLEM IS THAT THERE IS A HUGE UNKNOWN IT MAY BE WISE TO BE OWNING OTHER STOCKS RIGHT NOW SAYS WILLIAM BEARDSLEY HEALTHCARE ANALYST WITH IDS FINANCIAL SERVICES THE SELLOFF LEFT FEW HMO STOCKS UNTOUCHED YESTERDAY AMONG THE WORST HIT WAS UNITED HEALTHCARE DOWN 6 3/4 TO 52 3/4 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING IN THE OVERTHECOUNTER MARKET OXFORD HEALTH PLANS SANK 8 1/4 TO 62 3/4 AND US HEALTHCARE TUMBLED 5 1/8 TO 41 1/4 SPURRING RENEWED CONCERN YESTERDAY AMONG HMO INVESTORS AND WALL STREET ANALYSTS WAS A REPORT BY A NEWSLETTER CALLED INSIDE HEALTH CARE REFORM WHICH CLAIMED TO SUMMARIZE A DRAFT DOCUMENT OF THE CLINTON HEALTH REFORM PLAN THE DOCUMENT THE NEWSLETTER SAID WAS WRITTEN BY A GOVERNMENT OFFICIAL WHO HAD ACCESS TO THE WHITE HOUSE REFORM PLAN AMONG OTHER THINGS THE SUMMARY SUGGESTED THAT HMOS AND INSURANCE COMPANIES COULD BEAR RESPONSIBILITY FOR RUNAWAY COSTS UNDER A NATIONAL HEALTH SPENDING BUDGET KIMBERLY PURVIS AN ANALYST WITH DONALDSON LUFKIN & JENRETTE SECURITIES ISSUED A COMMENT TO CLIENTS SAYING WE HAVE A VERY BASIC OUTLINE OF THE PROPOSED CLINTON HEALTHCARE REFORM BILL PARTS OF THE OUTLINE SHE SAID CONFIRMED OUR WORST FEARS AS PART OF HER REPORT MS PURVIS DOWNGRADED HER RATINGS ON THE ENTIRE HMO INDUSTRY FROM FAVORABLE TO NEUTRAL HMOS ARE MEDICALSERVICES COMPANIES THAT AIM TO HOLD DOWN COSTS PARTLY BY CONTROLLING WHERE PATIENTS GO FOR CARE BUT BOB BOORSTIN THE SPOKESMAN FOR THE WHITE HOUSE HEALTHREFORM EFFORT SAID LAST NIGHT THAT THE SOCALLED DRAFT DOCUMENT WHICH HAS BEEN CIRCULATING AROUND WASHINGTON IN RECENT WEEKS WAS NOT WRITTEN BY ANY ADMINISTRATION PERSON AND DOES NOT IN ANY WAY RESEMBLE THE PLAN STILL BEING FASHIONED BY CLINTON OFFICIALS IT IS A FABRICATION HE ASSERTED CLINTON AIDES HAVE EXPLAINED PREVIOUSLY THAT THE STATES ARE LIKELY TO BE RESPONSIBLE FOR ANY OVERRUNS OF THE NATIONAL HEALTH SPENDING BUDGET THOUGH DECISIONS AREN'T FINAL MR BOORSTIN WHO WAS QUESTIONED ABOUT THE DOCUMENT AFTER THE STOCK MARKET HAD CLOSED FOR THE DAY ADDED I WOULD HOPE THAT INVESTORS AND ANALYSTS WOULD NOT BASE CRUCIAL DECISIONS ON RUMOR OR ON DOCUMENTS THAT ARE THE WORK OF OPPONENTS OF THE PLAN REPRESENTATIVES OF INSIDE HEALTH CARE REFORM COULDN'T BE REACHED LAST NIGHT MS PURVIS ALSO COULDN'T IMMEDIATELY BE REACHED OF COURSE WALL STREET HAS BEEN SPECULATING FOR MONTHS ABOUT HOW HEALTHCARE REFORM WOULD AFFECT HMOS FOR A WHILE INVESTORS WORRIED THAT HMOS MIGHT FALL INTO PROFITLESS PROSPERITY WITH MORE BUSINESS YET SLIMMER PROFIT MARGINS AS REGULATORS TIGHTENED COST CONTROLS HMO STOCKS PLUNGED THIS SPRING BECAUSE OF SUCH CONCERNS WITH THE CLINTON ECONOMIC PLAN NOW PASSED BY CONGRESS AND SIGNED INTO LAW THE SPOTLIGHT HAS RETURNED TO HEALTH REFORM AND FOR SOME INVESTORS ANY NEWS SEEMS REASON ENOUGH RIGHT NOW TO START A STAMPEDE AWAY FROM A GROUP THAT WAS FAVORED RECENTLY BY MOMENTUM PLAYERS WHO TEND TO PILE ON TO SHARPLY RISING STOCKS THAT'S WHAT HAPPENED THIS SUMMER AS HMO STOCKS REBOUNDED AFTER THEIR SPRING SELLOFF SOME STOCKS INCLUDING OXFORD JUMPED TO LEVELS HIGHER THAN BEFORE THE SELLOFF THEY WERE RIPE FOR A FALL MEANWHILE SOME INVESTORS ARE STICKING TO THE IDEA THAT HMOS WILL EVENTUALLY BENEFIT FROM THE CLINTON PLAN IN MY VIEW HMOS ARE VERY WELL POSITIONED TO BENEFIT FROM REFORM SAID ZACHARY SHAFRAN AN ANALYST WITH WADDELL & REED IN SHAWNEE MISSION KAN THEY ARE CONTINUING TO EXPAND AND THEIR COST INCREASES ARE SLOWING AS A FIRM WE HAVE A POSITIVE OUTLOOK RICK WARTZMAN CONTRIBUTED TO THIS ARTICLE 9308120147 930812 BUSINESS BRIEF SAFECARD SERVICES INC FORMER CHAIRMAN HALMOS IS SUED IN WYOMING COURT SAFECARD SERVICES INC CHEYENNE WYO SAID IT FILED A SUIT IN WYOMING STATE COURT AGAINST ITS FORMER CHAIRMAN AND DIRECTOR PETER A HALMOS SEEKING TO RECOUP TENS OF MILLIONS OF DOLLARS IN ALLEGED INSIDERTRADING PROFITS THE CREDITCARDPROTECTION COMPANY SAID THE SUIT MAKES THE SAME CLAIMS AS ONE DISMISSED LAST WEEK FOR LACK OF VENUE BY A WYOMING FEDERAL COURT INCLUDING CHARGES THAT MR HALMOS BREACHED HIS FIDUCIARY DUTY MISAPPROPRIATED CORPORATE OPPORTUNITIES AND MISUSED ASSETS THE STATECOURT FILING HOWEVER ADDS AS DEFENDANTS HIGH PLAINS CAPITAL CORP AND CREDITLINE CORP COMPANIES OWNED BY MR HALMOS MR HALMOS CALLED THE CLAIMS FRIVOLOUS AND SAID THEY WERE REJECTED BY A FEDERAL COURT IN A SEPARATE CASE THREE YEARS AGO HE SAID SAFECARD IS WASTING CORPORATE ASSETS BY PURSUING THE LITIGATION THE SUIT IS THE LATEST MOVE IN A LEGAL BATTLE BETWEEN SAFECARD AND MR HALMOS WHO FOUNDED IT WITH HIS BROTHER IN 1969 SAFECARD OUSTED MR HALMOS IN DECEMBER 1992 AND FILED THE SUIT AGAINST HIM IN MAY THAT WAS DISMISSED LAST WEEK 9308120146 930812 INTERNATIONAL OLD RULING PARTY IN TAIWAN LOSING ITS POWERFUL GRIP BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN AFTER DECADES IN POWER TAIWAN'S RULING PARTY FACES A CRISIS THAT THREATENS ITS HOLD ON THE GOVERNMENT THE PARTY HAS BEEN BATTERED BY ALLEGATIONS OF CORRUPTION AND MONEY POLITICS THE ELECTORATE IS DISENCHANTED WITH ITS PERFORMANCE AND POPULAR YOUNG TURKS ARE BREAKING AWAY TO FORM THEIR OWN PARTY AS RECENTLY AS A YEAR AGO THE KUOMINTANG APPEARED TO HAVE AS FIRM A GRIP ON POWER AS IT HAS EVER ENJOYED IN TAIWAN WITH A POPULAR PRESIDENT WHO REPRESENTED THE ISLAND'S TAIWANESE MAJORITY AND CONTROL OVER THE LEGISLATURE THE KMT APPEARED SECURE THE KMT GOVERNMENT ALMOST CERTAINLY ISN'T GOING TO FALL SOON BUT AS IT PREPARES TO OPEN ITS 14TH PARTY CONGRESS IN TAIPEI NEXT WEEK IT FACES INTRACTABLE PROBLEMS THAT BODE ILL FOR ITS ABILITY TO RETAIN POWER IN THE LONG RUN THE SLOWMOTION LOSS OF AUTHORITY HAS BEEN MOST EVIDENT IN RECENT MONTHS AS THE PARTY HAS SUFFERED A SERIES OF STINGING DEFEATS IN A LEGISLATURE IN WHICH IT HOLDS ABOUT TWOTHIRDS OF THE SEATS WITH ISLANDWIDE ELECTIONS FOR COUNTY MAGISTRATES SET FOR THE END OF THE YEAR KMT STRATEGISTS RECOGNIZE THAT UNLESS THE PARTY CHANGES IT WILL FACE EMBARRASSING SETBACKS RECENT POLLS SUGGEST THE OPPOSITION DEMOCRATIC PROGRESSIVE PARTY COULD WIN MORE THAN HALF OF THE 21 MAGISTRACIES UP FROM THE SEVEN IT NOW HOLDS AS PARTY STALWARTS REALIZE THEY ARE LOSING THEIR GRIP ON POWER THE KMT LEADERSHIP LED BY PRESIDENT LEE TENGHUI IS FACING WIDESPREAD CALLS FOR REFORM AT THE PARTY CONGRESS IF THE PARTY LEADERS INSIST ON CONTINUING THIS WAY WE WILL BECOME THE MINORITY WARNS KAO YUJEN A LEGISLATOR WHO IS A POWERFUL KMT POLITICIAN IN SOUTHERN TAIWAN IF THERE IS NO REFORM NOW THE PARTY'S CRISIS WILL STILL BE WITH US THE LATEST BLOW TO THE KMT'S PRESTIGE CAME THIS WEEK WHEN A GROUP OF YOUNG LAWMAKERS DESCENDED FROM THE MAINLANDERS WHO FLED TO TAIWAN WITH THE KMT AFTER THE COMMUNIST REVOLUTION IN 1949 ANNOUNCED THAT THEY ARE FORMING THEIR OWN PARTY CALLED THE NEW PARTY THOUGH THE REBELS REPRESENT ONLY SIX OF THE KMT'S MORE THAN 100 SEATS IN THE LEGISLATIVE YUAN THE REBELS INCLUDE SOME OF THE ISLAND'S MOST POPULAR POLITICIANS POLLS SUGGEST THAT THE NEW PARTY COULD PROVE DAMAGING TO THE KMT IN THE YEAREND ELECTIONS IN SOME WAYS THE KMT IS A VICTIM OF ITS OWN SUCCESS PARTICULARLY PRESIDENT LEE'S EFFORT TO LEAD TAIWAN FROM AUTHORITARIANISM TO DEMOCRACY WHEN HE TOOK OFFICE UPON THE DEATH OF PRESIDENT CHIANG CHINGKUO IN EARLY 1988 MR LEE INHERITED A COUNTRY WITH A BOOMING ECONOMY AND A SCLEROTIC POLITICAL CULTURE KMT RULE WAS MARKED BY AN OMNIPRESENT SECRET POLICE AND A POWER STRUCTURE DOMINATED BY AGING MAINLANDERS THE TAIWANESE MAJORITY WAS LARGELY DISENFRANCHISED AND MANY OPPOSITION LEADERS WERE IN JAIL MUCH OF THAT HAS BEEN SWEPT AWAY THE POLICE HAVE BEEN DEFANGED THE ELDERLY MAINLANDERS HAVE BEEN REDUCED TO TOOTHLESS CARPING FROM THE SIDELINES THE VAST MAJORITY OF LOCAL POLITICIANS BOTH ELECTED AND APPOINTED ARE TAIWANESE AND A VIBRANT OPPOSITION PARTY CHALLENGES THE KMT AT EVERY TURN 9308120145 930812 INTERNATIONAL JAPAN'S TRADE SURPLUS WIDENED IN JULY ADDING TO PRESSURE ON NEW GOVERNMENT BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S MERCHANDISE TRADE SURPLUS WITH THE WORLD WIDENED 28 IN JULY FROM A YEAR EARLIER TO 1182 BILLION PUTTING FURTHER PRESSURE ON JAPAN'S NEW GOVERNMENT TO DO MORE THAN SIMPLY VOW TO CORRECT THE IMBALANCE THE JULY FIGURES REPRESENTED THE 31ST CONSECUTIVE RISE IN THE YEARONYEAR MONTHLY SURPLUS AND THE BIGGEST YEARONYEAR JUMP EVER FOR A JULY JAPAN'S SURPLUS WITH THE US WIDENED 23 TO 468 BILLION AND ITS SURPLUS WITH ASIA SOARED 37 TO 551 BILLION THE SURPLUS WITH THE EUROPEAN COMMUNITY DROPPED 20 TO 201 BILLION THE REPORT COMES AT A TIME WHEN JAPAN'S NEW GOVERNMENT SAYS IT WILL BE MORE SERIOUS ABOUT CUTTING THE TRADE SURPLUS ON WEDNESDAY A GOVERNMENT PANEL ADVISED PRIME MINISTER MORIHIRO HOSOKAWA TO TAKE STRONG MEASURES TO BOOST JAPAN'S LAGGING ECONOMY INCLUDING REVIEWING THE BUDGET FOR PUBLIC WORKPROJECTS AND HIROSHI KUMAGAI THE NEW MINISTER OF INTERNATIONAL TRADE AND INDUSTRY CHALLENGED THE MINISTRY'S TRADITIONAL CLAIM THAT JAPAN'S MARKETS ARE ALREADY OPEN MR KUMAGAI SAID HE WILL LOOK CLOSELY AT THE WAY JAPANESE CONDUCT BUSINESS BECAUSE JAPAN'S MARKETS MAY BE CLOSED IN WAYS THAT ARE INVISIBLE THAT SAID ECONOMISTS AREN'T OPTIMISTIC ABOUT AN ECONOMIC TURNAROUND ANYTIME SOON IN JAPAN IN PART BECAUSE PRIVATE CONSUMPTION REMAINS SO SLUGGISH AN INCREASE IN DOMESTIC DEMAND PROBABLY WOULD BRING THE TRADE SURPLUS DOWN ASSUMING CONSUMERS BOUGHT MORE IMPORTS I WOULDN'T LOOK FOR MUCH GROWTH IN CONSUMPTION SAID MATTHEW BERLOW AN ECONOMIST AT CREDIT LYONNAIS SECURITIES JAPAN THE SIZE OF EMPLOYEE BONUSES IS FALLING BONUSES ACCOUNT FOR A MAJOR PORTION OF INCOME IN JAPAN AND THE UNEMPLOYMENT RATE IS RISING MR BERLOW DOESN'T EXPECT CONSUMER CONFIDENCE TO PICK UP SOON THE CLINTON ADMINISTRATION HAS SOUGHT TO TRIM JAPAN'S TRADE SURPLUS BY TALKING UP THE VALUE OF THE YEN AGAINST THE DOLLAR IN CURRENCY MARKETS THAT MAKES THE PRICE OF IMPORTS CHEAPER IN YEN TERMS WHICH WORKS TO SPUR CONSUMPTION OF FOREIGN GOODS INDEED AN INCREASING NUMBER OF COMPANIES IN JAPAN ARE LOWERING THEIR PRICES TO REFLECT THE SHIFT IN CURRENCY RATES ACCORDING TO A JAPANESE GOVERNMENT SURVEY FOREIGN CAR COMPANIES WHICH HAVE REDUCED PRICES ARE RECORDING SALES GROWTH BUT SALES AREN'T RISING FOR EVERYONE IN MAY TIFFANY & CO REVISED DOWNWARD THE PRICE OF 350 OF THE ITEMS IT SELLS IN JAPAN AN AVERAGE OF 19 BUT A SPOKESWOMAN SAYS SALES HAVEN'T INCREASED NOTICEABLY BECAUSE CUSTOMERS DON'T TEND TO STOCK UP ON JEWELRY IMMEDIATELY MEANWHILE JAPAN'S FINANCE MINISTRY BLAMED THE LARGER TRADE SURPLUS ON THE SHORTTERM EFFECT OF THE RISING VALUE OF THE YEN BECAUSE THE SURPLUS IS DENOTED IN DOLLARS A STRENGTHENING YEN BOOSTS THE SURPLUS EVEN IF THE VOLUME OF GOODS TRADED REMAINS THE SAME IN JULY THE VALUE OF THE YEN AGAINST THE DOLLAR WAS 16 GREATER THAN A YEAR AGO AND THAT'S RAISING THE PRICE OF JAPAN'S EXPORTS IN JULY THE VALUE OF JAPAN'S EXPORTS TO THE WORLD ROSE 9 TO 3218 BILLION WHILE IMPORTS ROSE 04 TO 2037 BILLION THE VALUE OF JAPAN'S EXPORTS TO THE US ROSE 10 IN JULY TO 927 BILLION FUELED BY INCREASING SALES OF CARS SEMICONDUCTORS AND OFFICE MACHINERY THE VALUE OF IMPORTS FROM THE US ROSE A SLIGHT 01 9308120144 930812 WHO'S NEWS METROPOLITAN BANCORP METROPOLITAN BANCORP SEATTLE JOHN F CLEARMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF N C MACHINERY CO IN SEATTLE WAS ELECTED TO THE BOARD OF THIS SAVINGS AND LOAN HOLDING COMPANY AND ITS SUBSIDIARY METROPOLITAN FEDERAL SAVINGS & LOAN HE SUCCEEDS WEBSTER B ANDERSON WHO RETIRED 9308120143 930812 UNITED DOMINION BUYS MARLEY CHARLOTTE NC UNITED DOMINION INDUSTRIES LTD SAID IT HAS COMPLETED THE PREVIOUSLY ANNOUNCED ACQUISITION OF MARLEY CO FROM AFFILIATES OF KOHLBERG KRAVIS ROBERTS & CO UNITED DOMINION AN INDUSTRIAL PRODUCTS CONSTRUCTION AND ENGINEERING CONCERN BASED HERE SAID THE 340 MILLION TRANSACTION INCLUDES THE ASSUMPTION OF MARLEY'S 133 MILLION IN DEBT MARLEY BASED IN KANSAS CITY MO IS A MAKER OF HEATING EQUIPMENT 9308120142 930812 INTERNATIONAL SOUTH KOREA TAKES HARDER POSITION TOWARD THE NORTH BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA THE SOUTH KOREAN GOVERNMENT HARDENED ITS STANCE ON NORTH KOREA'S SUSPECTED ATOMIC WEAPONS PROGRAM IN RESPONSE TO PYONGYANG'S REJECTION OF SEOUL'S OFFER OF INTERKOREAN DIALOGUE ON THE ISSUE THE STANDOFF THREATENS TO DERAIL A THIRD ROUND OF USNORTH KOREA TALKS AIMED AT DEFUSING THE CRISIS SEOUL'S OFFER OF DIALOGUE WAS THE LATEST IN A SERIES OF SUCH CONCILIATORY GESTURES FROM SOUTH KOREA SINCE LATE MAY FOR SOUTH KOREA THE REBUFF TUESDAY WAS THE LAST STRAW WE BELIEVE THE NORTH KOREANS NOW HAVE ENOUGH JUSTIFICATION FOR SOFTENING THEIR HARDLINE STANCE FOREIGN MINISTER HAN SUNG JOO TOLD THE YONHAP NEWS AGENCY UP TO NOW WE STUCK TO A CONCILIATORY POLICY TOWARD THE NORTH TO AVOID CAUSING IRRITATION BUT NOW WE ARE CONSIDERING A MUCH STRONGER STRATEGY ALMOST ALL DIRECT CONTACT BETWEEN SEOUL AND PYONGYANG WAS CUT OFF AFTER NORTH KOREA ANNOUNCED IN MARCH THAT IT WAS WITHDRAWING FROM THE INTERNATIONAL NUCLEAR NONPROLIFERATION TREATY INTELLIGENCE AGENCIES SUSPECT NORTH KOREA IS DEVELOPING ATOMIC WEAPONS AND ITS WITHDRAWAL FROM THE TREATY WAS SEEN AS A BID TO EVADE INTERNATIONAL INSPECTION US NEGOTIATORS FOLLOWING A SECOND ROUND OF HIGHLEVEL TALKS LAST MONTH WITH NORTH KOREAN OFFICIALS IN GENEVA LINKED A THIRD SESSION TO A RESUMPTION OF NORTHSOUTH CONTACT SOUTH KOREA'S DECISION TO ABANDON ATTEMPTS FOR SUCH A DIALOGUE CASTS DOUBT ON THE PROSPECTS FOR CONTINUED NEGOTIATIONS BETWEEN WASHINGTON AND PYONGYANG SOUTH KOREA'S CONCILIATORY POLICY WAS ENCOURAGED BY WASHINGTON WHICH WANTS TO EXHAUST ALL PEACEFUL MEANS OF PERSUADING NORTH KOREA TO OPEN ITS NUCLEAR FACILITIES TO INSPECTION IF NEGOTIATIONS FAIL THE MATTER IS LIKELY TO GO BEFORE THE UNITED NATIONS SECURITY COUNCIL WHERE EVERY MEMBER BUT CHINA IS EXPECTED TO VOTE TO IMPOSE SANCTIONS ON PYONGYANG 9308120141 930812 DIAMETRICS MEDICAL ABORTS IPO AS SUIT CLAIMS PPG TRADE SECRETS WERE STOLEN BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DIAMETRICS MEDICAL INC ABORTED ITS 30 MILLION INITIAL PUBLIC OFFERING SEVERAL DAYS FOLLOWING THE STOCK SALE AFTER PPG INDUSTRIES INC FILED A LAWSUIT CLAIMING THE STARTUP'S TWO FOUNDERS MISAPPROPRIATED TRADE SECRETS LAST FRIDAY DIAMETRICS WENT PUBLIC OR SEEMED TO THROUGH A 13ASHARE OFFERING OF 23 MILLION NEWLY ISSUED SHARES REPRESENTING ABOUT A 30 STAKE IN THE MEDICALEQUIPMENT MAKER HAMBRECHT & QUIST INC AND VECTOR SECURITIES INTERNATIONAL INC LED THE UNDERWRITERS IN AN UNUSUAL BUT NOT UNPRECEDENTED MOVE HOWEVER THE OFFERING NOW WILL BE UNWOUND EVEN THOUGH THE MINNEAPOLIS COMPANY VEHEMENTLY CONTENDS THAT THE LAWSUIT'S CHARGES ARE GROUNDLESS THE FILING OF THE PPG SUIT TAINTS THE DEAL SAID A DIAMETRICS OFFICIAL OUR PLANS ARE TO RESOLVE THE ISSUE AND THEN LOOK AT OUR OPTIONS JEFFREY HOLMES HEAD OF INSTITUTIONAL SALES AT DEERFIELD ILLBASED VECTOR SAID THAT BECAUSE THE INITIAL OFFERING'S SALES WOULDN'T HAVE FORMALLY SETTLED UNTIL TODAY THE COMPANY'S WITHDRAWAL OF THE OFFERING ESSENTIALLY NULLIFIES THE TRANSACTIONS NEITHER MONEY NOR SHARES ACTUALLY CHANGED HANDS HE EXPLAINED ALL OF THE INVESTORS WHO SUBSCRIBED TO THE OFFERING WILL GET THEIR MONEY BACK AND ALL OF THE TRADES ARE CANCELED ALL SUBSEQUENT OPENMARKET TRADES ALSO ARE VOIDED DIAMETRICS SHARES NEVER OPENED YESTERDAY THE STOCK WHICH TRADED AS HIGH AS 1475 IN ITS BRIEF PUBLIC LIFE CLOSED TUESDAY IN NATIONAL OVERTHECOUNTER TRADING OFF 75 CENTS AT 13 ON TUESDAY PITTSBURGHBASED PPG FILED SUIT IN FEDERAL COURT IN MINNEAPOLIS ITS COMPLAINT ALLEGES THAT DAVID W DEETZ WHO UNTIL 1989 WORKED AT PPG AS A MEDICALSENSOR RESEARCHER AND PHYSIOLOGIST DR WALTER L SEMBROWICH WHO SERVED AS AN OUTSIDE CONSULTANT TO PPG AND LEFT WHEN MR DEETZ DID TOOK PPG TRADE SECRETS WITH THEM THE TWO MEN NOW SERVE AS DIAMETRICS' COCHAIRMEN IN 1991 PPG INTRODUCED THE LATEST GENERATION OF ITS PORTABLE BLOODGAS ANALYSIS PRODUCT KNOWN AS STATPAL MR DEETZ WAS A PART OF THE PRODUCT'S DEVELOPMENT TEAM DURING HIS TENURE AT PPG THE PPG LAWSUIT ALSO ASSERTS THAT DIAMETRICS' DEVICE INFRINGES ON PPG'S DESIGN PATENT DIAMETRICS WHICH LAST WINTER RAISED 18 MILLION IN ITS THIRD ROUND OF PRIVATE VENTURECAPITAL FUNDING BEGAN SELLING ITS SOCALLED IRMA BLOODGAS MEASURING DEVICE ON A LIMITED BASIS EARLIER THIS YEAR SAID IT EXPECTS TO BEGIN BROADER SALES IN EARLY 1994 BUT NOTED THAT THE LOSS TEMPORARILY AT LEAST OF THE OFFERING PROCEEDS MAY REQUIRE A REEVALUATION OF ITS PRODUCTION SCHEDULE BLOODGAS ANALYZERS ARE USED PARTICULARLY IN CRITICALCARE SITUATIONS TO PROVIDE DOCTORS WITH INFORMATION ABOUT THE LEVELS OF OXYGEN CARBON DIOXIDE AND THE ACIDBASE RATIO OF A PATIENT'S BLOOD WITHOUT WAITING FOR A HOSPITAL LABORATORY TO WORK UP TEST RESULTS ASKED WHETHER PPG HAD FILED ITS SUIT AT A TIME DESIGNED TO THROW DIAMETRICS' OFFERING INTO MAXIMUM DISARRAY A SPOKESMAN SAID IT'S MY UNDERSTANDING THAT THE SUIT WAS FILED AS SOON AS IT WAS READY THE TIMING WAS JUST THE WAY IT HAPPENED WHILE CIRCUMSTANCES WERE SLIGHTLY DIFFERENT THE LAST TIME A STOCK OFFERING WAS WITHDRAWN AFTER TRADING HAD COMMENCED WAS THE PULLBACK EARLY THIS YEAR OF A 14 MILLIONSHARE IPO FOR WILT CHAMBERLAIN'S RESTAURANTS INC THAT WITHDRAWAL SIMILAR IN THAT IT TOOK PLACE BEFORE THE IPO'S SHARES HAD FORMALLY BEEN DELIVERED TO BUYERS DIFFERED FROM DIAMETRICS' CASE IN THAT IT WAS PROMPTED BY THE DREADFUL RECEPTION CHAMBERLAIN SHARES RECEIVED ONCE TRADING GOT UNDER WAY WITHDRAWAL OF IPOS AFTER THEY HAVE BEEN PRICED RARE BECAUSE THE MOVE REQUIRES CONSENT OF BOTH THE ISSUING COMPANY AND THE SECURITIES FIRM THAT UNDERWROTE THE OFFERING OCCURRED ONLY TWICE IN 1992 AND FOUR TIMES IN 1991 9308120140 930812 BUSINESS BRIEF EQUITABLE'S SECONDQUARTER PROFIT SURPRISES ANALYSTS STOCK RISES 19 NEW YORK EQUITABLE COS REPORTED BETTERTHANEXPECTED SECONDQUARTER EARNINGS AMID A SHARP IMPROVEMENT IN ITS CORE LIFE INSURANCE BUSINESS SPARKING A 19 SURGE IN ITS STOCK PRICE EQUITABLE WHICH WENT PUBLIC IN JULY 1992 SAID NET INCOME WAS 475 MILLION OR 20 CENTS A SHARE IN CONTRAST TO A LOSS OF 447 MILLION IN THE YEAREARLIER QUARTER BEFORE THE COMPANY WENT PUBLIC THE NEW YORK STOCK EXCHANGE DELAYED THE OPENING OF TRADING IN EQUITABLE BECAUSE OF A CRUSH OF BUY ORDERS ITS SHARES FINISHED THE DAY AT 2525 UP 4 ON COMPOSITE VOLUME OF MORE THAN 16 MILLION SHARES WE'RE REALLY ENCOURAGED BY THE EARNINGS MOMENTUM SAID SALOMON BROTHERS ANALYST MARGARET ALEXANDRE WHO ISSUED A BUY RECOMMENDATION ON THE STOCK YESTERDAY MORNING IN PAST QUARTERS EQUITABLE'S INVESTMENT BUSINESSES PRIMARILY ITS DONALDSON LUFKIN & JENRETTE BROKERAGE UNIT MORE THAN OFFSET LOSSES IN ITS INSURANCE BUSINESS BUT IN THE SECOND QUARTER THE INSURANCE OPERATION SHOWED A PROFIT OF 187 MILLION MAINLY DUE TO COST CUTTING AND IMPROVED PROFIT MARGINS COMPARED WITH A YEAREARLIER LOSS OF 449 MILLION THE INSURANCE SEGMENT HAD BEEN A BIG HANGUP MS ALEXANDRE SAID THIS IS REALLY A TURNING POINT SHE ALSO SAID THE DETERIORATION IN THE QUALITY OF EQUITABLE'S ASSETS SEEMS TO HAVE STABILIZED THE COMPANY ALSO BENEFITED FROM STRONG RENEWAL BUSINESS AND A STEEP DECLINE IN POLICY SURRENDERS AND WITHDRAWALS EQUITABLE'S EARNINGS WERE ABOUT ONETHIRD HIGHER THAN EXPECTED BY SOME WALL STREET ANALYSTS REVENUE FELL TO 155 BILLION FROM 165 BILLION A YEAR AGO ALTHOUGH THE INSURANCE SEGMENT PRODUCED THE BIGGEST SURPRISE DONALDSON LUFKIN & JENRETTE POSTED A RECORD QUARTER AND EQUITABLE'S INVESTMENT MANAGEMENT OPERATIONS ALSO SHOWED STRONG RESULTS DURING THE QUARTER PROBLEM COMMERCIAL MORTGAGES FELL TO 6 OF THE TOTAL PORTFOLIO FROM 65 AT THE END OF 1992 ONLY TWO YEARS AGO EQUITABLE SEEMED AT DEATH'S DOOR DUE TO HEAVY LOSSES FROM ITS DISASTROUS FORAY INTO GUARANTEED INVESTMENT CONTRACTS THE CONTRACTS BACKED BY REAL ESTATE AND JUNK BONDS PRODUCED HUGE LOSSES THAT THREATENED TO BURY THE COMPANY SINCE THEN EQUITABLE HAS RAISED CAPITAL AND FOCUSED ON MAKING ITS BUSINESSES MORE PROFITABLE A MAJOR BOOST CAME IN THE FORM OF A 1 BILLION INVESTMENT FROM GROUPE AXA SA A GIANT FRENCH INSURER WHICH NOW OWNS 49 OF EQUITABLE'S STOCK 9308120139 930812 INTERNATIONAL SAINTGOBAIN'S REVENUE FALLS PARIS FRENCH BUILDING MATERIALS GROUP CIE DE SAINTGOBAIN REPORTED THAT GROUP CONSOLIDATED REVENUE IN THE FIRST HALF FELL 78 TO 35736 BILLION FRENCH FRANCS 592 BILLION FROM 38773 BILLION FRANCS A YEAR EARLIER FRENCH COMPANIES ARE REQUIRED BY LAW TO ANNOUNCE PERIODIC REVENUE 9308120138 930811 WYNN SELLS MIRAGE SHARES LAS VEGAS MIRAGE RESORTS INC'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER STEPHEN A WYNN HAS SOLD 450000 MIRAGE COMMON SHARES REDUCING HIS STAKE TO 195 ACCORDING TO A SECURITIES AND EXCHANGE COMMISSION FILING MR WYNN SOLD THE SHARES IN THE CASINO COMPANY LAST WEDNESDAY AND THURSDAY AT 47 EACH OR A TOTAL OF 211 MILLION HE CONTINUES TO HOLD 6360000 SHARES INCLUDING 2350000 SHARES SUBJECT TO THE EXERCISE OF OPTIONS DANIEL R LEE MIRAGE'S CHIEF FINANCIAL OFFICER SAID MR WYNN SOLD THE STOCK TO DIVERSIFY HIS HOLDINGS AND BUILD A NEW RESIDENCE WITH INCREASED SECURITY IN THE WAKE OF THE MUCHPUBLICIZED KIDNAPPING OF HIS 26YEAROLD DAUGHTER KEVIN MS WYNN WAS ABDUCTED FROM HER HOME IN THE EXCLUSIVE SPANISH TRAIL COMMUNITY LATE LAST MONTH AND WAS RELEASED UNHARMED SEVERAL HOURS LATER FOLLOWING THE PAYMENT OF A 1450000 RANSOM ONE SUSPECT HAS BEEN ARRESTED IN THE CASE AND TWO OTHERS ARE BEING SOUGHT BY AUTHORITIES A MIRAGE SPOKESMAN SAID LAST DECEMBER MR WYNN EXERCISED OPTIONS AND THEN SOLD ONE MILLION SHARES FOR 3225 EACH AT AN INDICATED PRETAX PROFIT OF 233 MILLION MR WYNN SAID AT THE TIME HE SOLD THAT STOCK TO PAY PERSONAL DEBTS AND ALSO CITED CONCERNS ABOUT HIGHER TAXES UNDER THE CLINTON ADMINISTRATION AS A REASON FOR EXERCISING OPTIONS BEFORE THE END OF LAST YEAR UNTIL THEN MR WYNN 51 HAD NEARLY ALL OF HIS PERSONAL WEALTH INVESTED IN THE COMPANY MIRAGE FELL 225 A SHARE TO CLOSE AT 4775 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING AFTER OPPENHEIMER & CO ANALYST STEVE EISENBERG CUT THE STOCK TO MARKET PERFORMER FROM BUY BASED ON THE STOCK'S RISE OF ABOUT 15 IN THE PAST FEW WEEKS THE COMPANY IS BUILDING A 430 MILLION PIRATETHEMED RESORT ON THE LAS VEGAS STRIP THAT IS SCHEDULED TO OPEN IN OCTOBER AND MIRAGE'S MR LEE SAID THE COMPANY'S BUSINESS AT ITS FLAGSHIP MIRAGE CASINO AND OTHER PROPERTIES CONTINUES TO SHOW STRENGTH THROUGH THE BUSY SUMMER SEASON 9308120137 930812 ECONOMY US FORECAST FOR CORN CROP IS CUT BY 54 MONTHLY REVISION IS LIKELY TO BOOST PRICES TODAY WIDER IMPACT IS SEEN BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE AGRICULTURE DEPARTMENT LOWERED ITS ONEMONTHOLD FORECAST OF THE NATION'S BIGGEST CROP CORN BY 54 TO REFLECT RECORD RAIN DAMAGE IN THE MIDWEST THE CUT WHICH WAS DEEPER THAN EXPECTED BY MANY ECONOMISTS IS EXPECTED TO LIFT US CORN PRICES TODAY AND SIGNALS THAT US SUPPLIES WILL GROW TIGHT ENOUGH TO TRIGGER A SERIES OF POLITICAL AND INDUSTRY REACTIONS AMONG OTHER THINGS THE NEW FORECAST WILL PRESSURE THE CLINTON ADMINISTRATION TO PUT MORE CORN LAND INTO PRODUCTION NEXT YEAR SUCH A MOVE WOULD INCREASE GOVERNMENT SPENDING WHILE SWELLING THE REVENUES OF PESTICIDE FERTILIZER AND SEED SUPPLIERS THE GOVERNMENT LOWERED ITS MONTHLY CORNHARVEST FORECAST TO 742 BILLION BUSHELS FROM ITS JULY FORECAST OF 785 BILLION BUSHELS THE AGRICULTURE DEPARTMENT'S ORIGINAL SPRING FORECAST WAS FOR AN 85 BILLIONBUSHEL CORN CROP WHICH MEANS THAT FLOODING IN THE MIDWEST AND DROUGHT IN THE SOUTH HAVE COMBINED TO SHRINK THE CROP'S POTENTIAL SIZE BY ROUGHLY ONE BILLION BUSHELS THE NEW CORN FORECAST WHICH IS BASED ON FIELD CONDITIONS AROUND AUG 1 PROBABLY WON'T PROMPT ECONOMISTS TO RAISE THEIR FORECASTS FOR 1993 FOOD INFLATION MUCH MORE THAN THEY ALREADY HAVE IN RECENT WEEKS MANY ECONOMISTS ADDED ABOUT ONEHALF A PERCENTAGE POINT TO THEIR INFLATION FORECASTS IN JUNE AND JULY AS THE MISSISSIPPI RIVER LEFT ITS BANKS AS A RESULT MOST FOOD INFLATION FORECASTS ARE BETWEEN 3 AND 375 CORN IS PART OF THE COST OF MAKING EVERYTHING FROM ETHANOL FUEL TO SWEETENER BUT YESTERDAY'S GOVERNMENT REPORT ALSO SIGNALS THAT US GRAIN PRICES WILL BE HELD SOMEWHAT IN CHECK BY LARGE HARVESTS ELSEWHERE THE AGRICULTURE DEPARTMENT FOR EXAMPLE RAISED ITS FORECAST OF THE CROP HARVEST IN THE FORMER SOVIET UNION ABOUT 6 TO 1948 MILLION METRIC TONS A HARVEST THAT SIZE SHOULD HELP CUT THE REGION'S APPETITE FOR US CROPS THE AGRICULTURE DEPARTMENT LOWERED ITS FORECAST OF THE US SOYBEAN CROP BY 37 WHICH WASN'T AS DEEP A CUT AS EXPECTED BY CROP ANALYSTS THE GOVERNMENT EXPECTS SOYBEAN FARMERS TO HARVEST 190 BILLION BUSHELS COMPARED WITH ITS JULY FORECAST OF 1975 BILLION BUSHELS IN ADDITION TO LOWER CORN AND SOYBEAN PRODUCTION THE MIDWEST RAIN AND SOUTHEAST DROUGHT ARE HURTING CROPS RANGING FROM HAY TO VEGETABLES FLOODING IS ALSO CAUSING EXTENSIVE DAMAGE TO FARM PROPERTY BASED ON THE FORMULA THAT THE GOVERNMENT IS USING TO CALCULATE DISASTER AID TO FARMERS THE AMOUNT OF FARM DAMAGE IS ROUGHLY 6 BILLION YESTERDAY'S FORECASTS ARE BASED ON THE MOST EXHAUSTIVE LOOK YET AT THE RAINDAMAGED CROPS ROUGHLY 9000 FARMS WERE EXAMINED IN THE NINEHARDEST HIT STATES BUT THE OUTLOOK IS STILL UNUSUALLY CLOUDY WITH ONLY ABOUT EIGHT WEEKS LEFT IN THE GROWING SEASON BECAUSE OF THE RAINDELAYED PLANTING SEASON THE DEVELOPMENT OF MANY CORN FIELDS IN IOWA MINNESOTA AND SOUTH DAKOTA ARE TWO WEEKS TO FOUR WEEKS BEHIND SCHEDULE MIDWEST FIELDS CAPABLE OF PRODUCING ABOUT 14 BILLION BUSHELS PROBABLY WON'T MATURE BEFORE THEY ARE KILLED BY AUTUMN FROSTS SAID BILL BIEDERMANN VICE PRESIDENT OF RESEARCH AT ALLENDALE INC CRYSTAL LAKE ILL THE CROP REPORT WILL PROBABLY SPARK A POLITICAL BATTLE OVER WHETHER THE AGRICULTURE DEPARTMENT EASES PLANTING RESTRICTIONS DESIGNED TO PREVENT BURDENSOME STOCKPILES CORN FARMERS LAST SPRING WERE REQUIRED TO IDLE 10 OF THEIR ACREAGE IN ORDER TO QUALIFY FOR PRICE SUPPORTS YESTERDAY'S REPORT SUGGESTS THAT THE US CORN STOCKPILE BY AUTUMN 1994 MIGHT DROP ROUGHLY ONETHIRD TO 14 BILLION BUSHELS FROM CURRENT LEVELS THE MIDWEST RAIN HAS PROBABLY HURT THE QUALITY OF THESE STOCKPILED CROPS MANY GRAIN ELEVATORS ALONG MAJOR RIVERS HAVE BEEN FLOODED AND THOUSANDS OF GRAINHAULING BARGES HAVE BEEN STRANDED SINCE JUNE BY THE CLOSURE OF THE MISSISSIPPI RIVER TEMPERATURES IN SOME OF THESE BARGES REPORTEDLY HAVE BEEN HIGH ENOUGH TO DAMAGE THE CROPS INSIDE JOHN URBANCHUK AN ECONOMIST AT AUS CONSULTANTS INC SAID HE EXPECTS THE GOVERNMENT TO REDUCE THE SETASIDE REQUIREMENT TO AT LEAST 5 FOR SPRING PLANTING OF CORN SUCH A MOVE WOULD INCREASE CORN PLANTING BY ABOUT SIX MILLION ACRES SOME POPULIST FARM GROUPS WOULD PROBABLY FIGHT SUCH A MOVE BECAUSE THEY SEE IDLE LAND AS A TOOL TO RAISE GRAIN PRICES AND SOME CONSERVATIVE FARM GROUPS WILL PROBABLY PRESS FOR AN EVEN SMALLER SETASIDE ON THE THEORY THAT IDLING US LAND HELPS FOREIGN COMPETITORS EXPAND SOME US ANALYSTS ALREADY EXPECT SOUTH AMERICAN SOYBEAN GROWERS TO PLANT ROUGHLY 10 MORE LAND IN THE NEXT FEW MONTHS TO TAKE ADVANTAGE OF ANY RUNUP IN US CROP PRICES THE GOVERNMENT'S CROP REPORT WAS RELEASED AFTER THE CLOSE OF TRADING AT THE CHICAGO BOARD OF TRADE AT THE FUTURES EXCHANGE THE CORN CONTRACT FOR DECEMBER DELIVERY ROSE 15 CENTS A BUSHEL TO SETTLE AT 24725 A BUSHEL THE SOYBEAN CONTRACT FOR NOVEMBER DELIVERY ROSE 10 CENTS A BUSHEL TO SETTLE AT 68325 A BUSHEL MARY AGNES CAREY IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9308120136 930812 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG IT'S TOO EARLY TO KNOW WHETHER APPLE COMPUTER'S FIRST NEWTON HANDHELD COMPUTER MODEL THE 699 MESSAGEPAD WILL BE A HIT BUT IT'S ALREADY CLEAR THE NEWTON SOFTWARE EVEN IN ITS FIRST INCARNATION IS A BIG STEP FORWARD IN MAKING COMPUTERS ADAPT TO THE NEEDS OF THEIR HUMAN USERS RATHER THAN THE OTHER WAY AROUND THIS SOFTWARE TECHNOLOGY WHICH APPLE CALLS INTELLIGENT ASSISTANCE WILL BE INCORPORATED IN A VARIETY OF NEWTON DEVICES THE COMPANY IS DEVELOPING APPLE MAY INTRODUCE A SECOND NEWTON MODEL WITHIN SIX MONTHS IN ADDITION APPLE HAS LICENSED THE NEWTON SOFTWARE TO SEVERAL COMPANIES THAT WILL BUILD IT INTO THEIR OWN PRODUCTS INCLUDING SMART PHONES WITH SCREENS THAT WILL FEATURE THE PENBASED NEWTON SOFTWARE JAPAN'S SHARP CORP AND MATSUSHITA ELECTRIC INDUSTRIAL MAKER OF PANASONIC AND OTHER BRANDS PLAN PRODUCT LINES BEARING THE NEWTON LOGO AS DO MOTOROLA AND GERMANY'S SIEMENS IN A REGULAR COMPUTER USERS MUST LAUNCH PROGRAMS SUCH AS WORD PROCESSORS OR CALENDAR SOFTWARE TO ENTER DATA AND PRODUCE DOCUMENTS THE INFORMATION CREATED IN ONE PROGRAM ISN'T EASILY LINKED TO THAT PRODUCED BY ANOTHER PRINTING FAXING AND THE SENDING OF ELECTRONIC MAIL IF AVAILABLE ARE USUALLY SEPARATE FUNCTIONS CONTROLLED BY SEPARATE SOFTWARE AND EVERYTHING REQUIRES SPECIAL COMPUTER COMMANDS NEWTON'S SOFTWARE DESIGNERS SCRAPPED THAT APPROACH THE MACHINE'S MAIN APPLICATION THE NOTEPAD A COMBINATION MINIWORD PROCESSOR AND DRAWING PROGRAM IS ALWAYS OPEN AND READY FOR USE IT PRESENTS THE USER WITH AN ENDLESSLY SCROLLING ELECTRONIC NOTEBOOK THAT STORES WORDS OR PICTURES DRAWN ON IT WITH A PLASTIC STYLUS THE MACHINE'S SURPRISINGLY GOOD HANDWRITINGRECOGNITION SYSTEM CAN BE USED TO TURN WRITTEN NOTES INTO PRINTED TEXT THE OTHER TWO BUILTIN PROGRAMS A CALENDAR FOR ENTERING APPOINTMENTS AND REMINDERS AND AN ADDRESS BOOK POP UP WITH A TAP OF THE PEN THE MOST EXCITING PART OF THE NEWTON SOFTWARE HOWEVER IS THAT IT UNDERSTANDS COMMANDS WRITTEN ON THE SCREEN IN ENGLISH AND THEN PREPARES TO CARRY OUT THOSE COMMANDS BY ANTICIPATING YOUR INTENTIONS THIS IS POSSIBLE BECAUSE THE UNDERLYING SOFTWARE CAN LINK ALL THE INFORMATION YOU ENTER OF WHATEVER TYPE INVISIBLY AND WITHOUT USER INTERVENTION THE OTHER DAY I WROTE A BRIEF NOTE ON MY NEWTON TO A FRIEND NAMED DAVID AT THE END OF THE NOTE I WROTE FAX TO DAVID AND TAPPED ON A LITTLE LIGHTBULB SYMBOL LABELED ASSIST AT THE BOTTOM OF THE SCREEN NEWTON DID THE REST IT LAUNCHED ITS BUILTIN FAXING PROGRAM AND SEARCHED MY ADDRESS BOOK FOR A DAVID NEWTON FOUND HIM AND PREPARED A FAX OF THE NOTE I HAD WRITTEN COMPLETE WITH HIS FULL NAME AND FAX PHONE NUMBER THE MACHINE THEN ASKED IF IT HAD ANTICIPATED MY INTENTIONS CORRECTLY AFTER I SAID YES IT PLACED THE FAX IN AN OUT BOX FOR SENDING NEXT I WROTE LUNCH WITH BOB THURS AT RITZ AND PRESSED THE LIGHTBULB SYMBOL AGAIN NEWTON FOUND ALL THE PEOPLE NAMED BOB AND THE ONE RESTAURANT NAMED RITZ IN MY ADDRESS BOOK IT THEN OPENED ITS CALENDAR PROGRAM FOUND THE NEXT THURSDAY AND PROPOSED TO ENTER A LUNCH DATE AT NOON THAT DAY AT RITZ WITH WHICHEVER BOB I SELECTED FROM A LIST IT PRESENTED AFTER I PICKED THE RIGHT BOB NEWTON MADE THE CALENDAR ENTRY WITH HIS FULL NAME THE MACHINE WAS SMART ENOUGH TO KNOW THAT LUNCH IS OFTEN AT NOON IF I HAD WRITTEN DINNER IT WOULD HAVE GUESSED AS A STARTING POINT THAT I MEANT A MEAL AT 7 PM THIS INTELLIGENT ANTICIPATION OF REQUESTS BASED ON THE INTERPRETATION OF PLAINENGLISH COMMANDS MAKES STANDARD USERFRIENDLY COMPUTING PALE BY COMPARISON AND IT IS ONE WAY IN WHICH NEWTON IS BETTER THAN A PAPER DATEBOOK MOREOVER THE DEVICE GETS SMARTER THE LONGER YOU OWN IT NOT ONLY DOES IT LEARN TO RECOGNIZE YOUR HANDWRITING INCREASINGLY WELL BUT AS YOUR ADDRESS BOOK GROWS IN SIZE IT CREATES MORE AND MORE LINKS SO THAT YOU CAN WRITE COMMANDS INVOLVING MORE AND MORE NAMES AND PLACES DESPITE ALL THIS WIZARDRY I HAVE FOUND A NUMBER OF GLITCHES AND BUGS IN NEWTON IN THE THREE WEEKS I'VE USED IT FOR INSTANCE THE THING PRINTS GREATLOOKING FULLSIZE PAGESBUT IT TAKES TWO TRIES EVERY TIME AT LEAST ON MY PRINTER IT FAXES FINE TO FAX MACHINES BUT NOT TO SOME FAX MODEMS AND SOFTWARE USED ON MANY MACINTOSH COMPUTERS MORE SERIOUSLY MY NEWTON SHUTS DOWN STOPS TRANSLATING HANDWRITING OR WON'T TURN ON UNDER CERTAIN CONDITIONSSUCH AS WHEN YOU DISCONNECT THE POWER ADAPTER WITHOUT FIRST TURNING THE DEVICE OFF OR WHEN YOU'RE USING ALKALINE BATTERIES THAT ARE RUNNING LOW APPLE SAYS THIS BEHAVIOR IS CAUSED BY THE WAY THE SOFTWARE AND ELECTRICAL SYSTEM INTERACT FORTU THERE'S AN EASY REMEDY YOU JUST PRESS A LITTLE RESET BUTTON HIDDEN UNDER THE BATTERY COVER THIS DOESN'T ERASE ANY OF YOUR DATA STILL IT'S A SCARY ANNOYING BUG APPLE SAYS IT WILL FIX IT IN A REVISED VERSION OF THE SOFTWARE NOW BEING WRITTEN NEWTON ALSO COULD BE EVEN SMARTER FOR INSTANCE WHEN YOU'RE ADDING A NAME TO THE ADDRESS BOOK IT SHOULD SAVE YOU SOME WRITING BY PRESENTING A LIST OF THE NAMES OF STATES AND OF CITIES AND COMPANIES YOU'VE USED IN OTHER ENTRIES NEVERTHELESS THE BASIC INTELLIGENCE OF THE SOFTWARE SHOULD MAKE DEVICES WITH THE NEWTON LOGO IMPORTANT PRODUCTS IN THE YEARS TO COME ADDENDUM LAST WEEK I WROTE THAT THE NEWTON COULD FIT IN A MIDSIZED WOMAN'S PURSE AS SEVERAL KEENEYED READERS HAVE NOTED WHAT I MEANT TO SAY WAS THAT IT WOULD FIT IN A MIDSIZED PURSE REGARDLESS OF THE SIZE OR SEX OF ITS OWNER 9308120135 930812 TECHNOLOGY & HEALTH FINDINGS ON NITRIC OXIDE MAY PAVE WAY FOR TREATMENT OF MANY BRAIN DISORDERS BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON SCIENTISTS MAY HAVE OPENED AN IMPORTANT NEW PATH FOR DRUG MAKERS IN PURSUIT OF TREATMENTS FOR BRAIN DISORDERS RANGING FROM STROKE AND EPILEPSY TO PARKINSON'S DISEASE AND AIDS DEMENTIA THE SCIENTISTS REPORTED THEY HAD RESOLVED A PARADOX ABOUT THE ROLE OF NITRIC OXIDE IN THE BRAIN AND NERVOUS SYSTEM THE GAS WAS FOUND LESS THAN FOUR YEARS AGO TO BE PRODUCED IN THE NERVOUS SYSTEM AND TO PLAY A KEY ROLE IN MANY BODILY PROCESSES SUCH AS REGULATING BLOOD PRESSURE AND TRIGGERING PENILE ERECTIONS BUT IT ALSO WAS DISCOVERED THAT BRAIN'S OWN NITRIC OXIDE CAN DAMAGE BRAIN CELLS UNDER SOME CIRCUMSTANCES AND PROTECT BRAIN CELLS FROM DAMAGE IN OTHER CIRCUMSTANCES IN A REPORT IN THIS WEEK'S ISSUE OF THE JOURNAL NATURE SCIENTISTS AT THE HARVARD MEDICAL SCHOOL SAY THEY FOUND WHICH CHEMICAL VERSIONS OF NITRIC OXIDE DAMAGE BRAIN CELLS AND WHICH ARE PROTECTIVE THE DISCOVERY THEY SAID SUGGESTS THAT DRUGS CAN BE DEVELOPED TO EITHER DAMP NITRIC OXIDE'S DAMAGING EFFECTS OR ENHANCE ITS PROTECTIVE EFFECTS ONCE YOU KNOW THE MECHANISM OF SOMETHING LIKE THIS YOU CAN BUILD BETTER DRUGS AND USE OLDER DRUGS MORE EFFECTIVELY SAID STUART LIPTON THE CHILDREN'S HOSPITAL NEUROSCIENTIST WHO HEADED THE RESEARCH TEAM WITH CHEMIST JONATHAN STAMLER OF BRIGHAM AND WOMEN'S HOSPITAL THE EXPERIMENTS FOR INSTANCE SUGGEST THAT NITRORELATED DRUGS MIGHT PROTECT BRAIN CELLS AGAINST DAMAGE FROM STROKE AND FROM DEGENERATIVE DISEASES SUCH AS PARKINSON'S AND HUNTINGTON'S DISEASES AND THE DEMENTIA SEEN IN MANY PATIENTS WITH ACQUIRED IMMUNE DEFICIENCY SYNDROME WE'RE HOPING NITROGLYCERIN WILL BE ONE OF THESE DRUGS DR LIPTON SAID NITROGLYCERIN HAS BEEN USED FOR MORE THAN A CENTURY TO EASE ANGINA CHEST PAINS CAUSED BY HEART DISEASE AND HAS A REMARKABLE SAFETY RECORD HE NOTED ANIMAL EXPERIMENTS ARE UNDER WAY TO SEE WHETHER NITROGLYCERIN IN MUCH HIGHER DOSES THAN ANGINA PATIENTS RECEIVE CAN ENTER THE BRAIN AND PROTECT IT FROM DAMAGE DR LIPTON SAID CHILDREN'S HOSPITAL HAS APPLIED FOR A PATENT ON THE USE OF NITRORELATED COMPOUNDS IN THE NERVOUS SYSTEM DRUG COMPANIES HAVEN'T YET BECOME INVOLVED BUT WE'RE TRYING TO TALK TO THEM NOW HE SAID UNTIL NOW DRUG INDUSTRY RESEARCHERS HAVE CONCENTRATED ON NEW DRUGS TO LIMIT STROKE DAMAGE BY BLOCKING AN ENZYME INVOLVED IN FORMING NITRIC OXIDE IN THE BRAIN NOTED SOLOMON H SNYDER DIRECTOR OF NEUROSCIENCE AT JOHNS HOPKINS UNIVERSITY MEDICAL SCHOOL IN BALTIMORE IN A COMMENTARY ON THE BOSTON EXPERIMENTS ALSO PUBLISHED IN NATURE DR SNYDER HEADED THE TEAM THAT FOUND THE NITRIC OXIDEFORMING ENZYME FOUR YEARS AGO THE NEW FINDINGS ARGUE FOR A MORE SOPHISTICATED APPROACH THAN JUST THE ENZYME BLOCKERS DR SNYDER WROTE THE BOSTON EXPERIMENTS FOR EXAMPLE SHOW THAT THE PROTECTIVE EFFECT COMES FROM A FORM OF NITRIC OXIDE THAT CARRIES A POSITIVE ELECTRIC CHARGE THIS POSITIVELY CHARGED NITRIC OXIDE BLOCKS BRAIN CELLS FROM BEING LETHALLY OVEREXCITED BY TOO MUCH OF A BRAIN CHEMICAL CALLED GLUTAMATE THE GLUTAMATEINDUCED DAMAGE IS THOUGHT TO BE THE WAY BRAIN CELLS ARE DESTROYED IN AIDS DEMENTIA AND PARKINSON'S AND HUNTINGTON'S DISEASES NITROGLYCERIN ALSO IS POSITIVELY CHARGED AND IS MUCH LIKE POSITIVELY CHARGED NITRIC OXIDE THIS IS WHY THE BOSTON SCIENTISTS ARE EXPERIMENTING TO SEE IF NITROGLYCERIN CAN BE MADE TO SEEP INTO THE BRAIN AND BLOCK THE GLUTAMATEINDUCED DAMAGE THE EXPERIMENTS ALSO FOUND THAT THE DAMAGING FORM OF NITRIC OXIDE IS AN ELECTRICALLY NEUTRAL FORM IT'S THIS FORM THAT IS THOUGHT TO CAUSE THE DAMAGE IN STROKES THE IDEAL THERAPEUTIC AGENT SHOULD BE ONE THAT PREVENTS THE FORMATION OF NO THE ELECTRICALLY NEUTRAL FORM WHILE ENHANCING THE FORMATION OF NO+ THE POSITIVELY CHARGED FORM DR SNYDER WROTE ALTERNATIVELY HE ADDED IT MAY BE POSSIBLE TO DEVELOP DRUGS THAT ARE CONVERTED TO THE PROTECTIVE FORM OF NITRIC OXIDE 9308120134 930812 BARITO PACIFIC OFFERING APPROVED JAKARTA INDONESIA A 295 MILLION PUBLIC SHARE OFFERING BY PT BARITO PACIFIC TIMBER HAS BEEN APPROVED BY INDONESIA'S SECURITIES REGULATORY AGENCY BARITO PACIFIC INDONESIA'S BIGGEST PLYWOOD MAKER WILL SELL 85 MILLION NEW SHARES VALUED AT 7200 RUPIAH 344 EACH ABOUT 12 OF THE COMPANY'S EXPANDED EQUITY TO FOREIGN AND DOMESTIC INVESTORS IN INDONESIA'S LARGEST STOCK OFFERING TO DATE AN UNDERWRITING GROUP OF 43 INDONESIAN SECURITIES FIRMS LED BY PT MAKINDO WILL PLACE THE BARITO PACIFIC STOCK MAKINDO IS EXPECTED TO ALLOCATE A PORTION OF BARITO PACIFIC SHARES TO A GROUP OF FOREIGN SECURITIES FIRMS FOR PLACEMENT ABROAD 9308120133 930812 WHO'S NEWS SPRINT CORP SPRINT CORP KANSAS CITY MO THIS TELECOMMUNICATIONS COMPANY NAMED A ALLAN KURTZE SENIOR VICE PRESIDENT OF OPERATIONS FOR ITS LOCAL TELECOMMUNICATIONS DIVISION MR KURTZE 48 YEARS OLD FORMERLY SERVED AS SENIOR VICE PRESIDENT OF BUSINESS PLANNING AND DEVELOPMENT HE FILLS A POSITION THAT HAS BEEN VACANT 9308120132 930812 WHO'S NEWS GRUBB & ELLIS CO GRUBB & ELLIS CO NEW YORK THIS REAL ESTATE COMPANY SAID NOEL A SPILLANE 61 YEARS OLD RESIGNED AS PRESIDENT OF WM A WHITE/GRUBB & ELLIS ITS NEW YORK BROKERAGE OPERATION EDWIN H COHEN 52 AN EXECUTIVE VICE PRESIDENT OF WM A WHITE/GRUBB & ELLIS WAS NAMED INTERIM PRESIDENT 9308120131 930812 MEXICO FUND SLATES OFFER MEXICO CITY MEXICO FUND SAID IT PLANS TO RAISE NEW EQUITY BY OFFERING SHAREHOLDERS THE RIGHT TO BUY ABOUT 9310000 NEW COMMON SHARES OF THE CLOSEDEND INVESTMENT FUND SHAREHOLDERS WILL RECEIVE ONE TRANSFERABLE RIGHT FOR EACH COMMON SHARE AND CAN BUY ONE SHARE FOR EACH THREE RIGHTS THE COMPANY SAID NEW FUNDS WILL ENABLE IT TO TAKE ADVANTAGE OF INVESTMENT OPPORTUNITIES IN MEXICO AT RECENT PRICES THE SALE WOULD RAISE ABOUT 243 MILLION ALTHOUGH THE OFFERING PRICE HASN'T BEEN SET THE FUND CURRENTLY HAS ABOUT 279 MILLION SHARES OUTSTANDING 9308120130 930812 ANOTHER JOB REDUCTION SET IN DRUG INDUSTRY JOHNSON & JOHNSON TO TRIM WORK FORCE BY 3000 WORLDWIDE THIS YEAR BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL NEW BRUNSWICK NJ JOHNSON & JOHNSON SAID IT EXPECTS TO ELIMINATE 3000 JOBS THIS YEAR OR ABOUT 36 OF ITS WORLDWIDE WORK FORCE THROUGH AN EARLYRETIREMENT PROGRAM ANNOUNCED YESTERDAY AND OTHER ACTIONS UNDER WAY THE PLAN TO CUT ITS WORK FORCE WHICH TOTALS 84000 FOLLOWS SIMILARLY AGGRESSIVE CUTBACKS AT OTHER PHARMACEUTICAL COMPANIES INCLUDING MERCK & CO AND BRISTOLMYERS SQUIBB CO THE INDUSTRY HAS ANNOUNCED JOB REDUCTIONS AMOUNTING TO MORE THAN 10000 IN THE PAST YEAR ACCORDING TO ARVIND DESAI AN ANALYST WITH MEHTA & ISALY WHO SAYS MORE CUTBACKS MAY BE COMING JOHNSON & JOHNSON HAD BEEN CRITICIZED BY WALL STREET ANALYSTS BECAUSE IT HADN'T TAKEN SUCH STEPS EARLIER MR DESAI SAID ITS DECENTRALIZED STRUCTURE HAS HELPED THEM TO GROW AT A VERY RAPID RATE MR DESAI SAID BUT IT ALSO CREATES DUPLICATION AND ROOM TO CUT COSTS NOW THE TIMES ARE CHANGING WITH PRICING PRESSURES PINCHING ITS CONSUMER HOSPITAL AND PHARMACEUTICAL BUSINESSES HE SAID THE CUTBACK PROGRAMS WILL COST AN ESTIMATED 200 MILLION PRETAX THE COMPANY SAID BUT THAT HAS BEEN PROVIDED FOR IN A RESERVE CREATED IN 1992 FOR ACCOUNTING CHANGES AND WON'T RESULT IN A CHARGE TO EARNINGS ANNUAL SAVINGS ARE EXPECTED TO EXCEED 100 MILLION THE COMPANY SAID JOHNSON & JOHNSON SAID IT IS OFFERING VOLUNTARY EARLY RETIREMENT TO HEADQUARTERS EMPLOYEES WHO ARE AT LEAST 50 YEARS OLD AND HAVE AT LEAST SEVEN YEARS OF SERVICE MANAGERS OF 28 US SUBSIDIARIES WILL DECIDE WHETHER TO OFFER THE PROGRAM TO THEIR EMPLOYEES THE COMPANY SAID THE HEALTHCARE CONCERN SAID IT EXPECTS ABOUT 1000 EMPLOYEES TO TAKE THE OFFER THE RETIREMENT PACKAGE WILL INCLUDE INCREASED PENSION BENEFITS AND TWO WEEKS' SALARY FOR EVERY YEAR'S EMPLOYMENT UP TO A YEAR'S SALARY A SPOKESMAN SAID OTHER COSTCUTTING PROGRAMS UNDER WAY OR COMPLETED ARE EXPECTED TO ELIMINATE ANOTHER 2000 JOBS BY YEAR'S END THE COMPANY SAID THOSE ACTIONS INCLUDE RESTRUCTURING ETHICON INC MERGING TWO PHARMACEUTICAL UNITS TO FORM ORTHOMCNEIL PHARMACEUTICAL AND REDUCING STAFF BY 335 AT ETHICON ENDOSURGERY IN ADDITION EUROPEAN AND BRAZILIAN PLANTS ARE BEING CLOSED OR CONSOLIDATED JOHNSON & JOHNSON EMPLOYS ABOUT 40000 IN THE US 9308120129 930812 WHO'S NEWS BARRIE NAMED DIRECTOR OF CLEVELAND MUSEUM FOR ROCK AND ROLL CLEVELAND DENNIS BARRIE FORMER DIRECTOR OF THE CINCINNATIBASED CONTEMPORARY ARTS CENTER WAS NAMED THE DIRECTOR OF THE ROCK AND ROLL HALL OF FAME AND MUSEUM WHICH IS BEING BUILT IN CLEVELAND FOLLOWING A PROTRACTED STRUGGLE TO RAISE FUNDS MR BARRIE RECEIVED NATIONAL ATTENTION WHEN HE AND THE ARTS CENTER WERE INDICTED ON MISDEMEANOR OBSCENITY CHARGES FOR THE 1990 EXHIBIT ROBERT MAPPLETHORPE THE PERFECT MOMENT HE AND THE ARTS CENTER WERE TRIED AND ACQUITTED THE 46YEAROLD MR BARRIE LEFT THE ARTS CENTER IN 1992 AND FOUNDED DENNIS BARRIE & ASSOCIATES WHICH DEVELOPS ARTS PROGRAMS AND MOUNTS EXHIBITIONS AROUND THE COUNTRY HE SUCCEEDS K MICHAEL BENZ WHO IS LEAVING TO PURSUE OTHER INTERESTS UNDER MR BENZ THE HALL OF FAME RAISED 84 MILLION TO COVER CONSTRUCTION COSTS CONSTRUCTION BEGAN IN JUNE THE MUSEUM WHICH IS BEING DESIGNED BY ARCHITECT IM PEI IS SLATED TO OPEN IN MID1995 9308120128 930812 WHO'S NEWS POCO PETROLEUMS LTD POCO PETROLEUMS LTD CALGARY ALBERTA THIS OIL AND GAS PRODUCER SAID IT APPOINTED CRAIG W STEWART CHIEF EXECUTIVE IN ADDITION TO HIS POSITION AS PRESIDENT MR STEWART 39 YEARS OLD WAS FORMERLY POCO'S CHIEF OPERATING OFFICER THE COMPANY HAS BEEN WITHOUT A CHIEF EXECUTIVE SINCE OCTOBER 1992 WHEN ITS CHAIRMAN ARNE NIELSEN RESIGNED FROM THAT POST THE COMPANY SAID IT IS ELIMINATING THE POSITION OF CHIEF OPERATING OFFICER 9308120127 930812 FEDERAL EXPRESS KINKO'S IN PACT MEMPHIS TENN FEDERAL EXPRESS CORP AND KINKO'S COPY CENTERS SAID THEY REACHED AN AGREEMENT TO PUT THE AIR EXPRESS CARRIER'S SELFSERVICE PACKAGING AND DROPOFF STATIONS IN KINKO'S 600 LOCATIONS IN THE US AND CANADA TERMS OF THE TRANSACTION WEREN'T DISCLOSED KINKO'S IS A CLOSELY HELD CHAIN OF PHOTOCOPYING STORES BASED IN VENTURA CALIF 9308120126 930812 WHO'S NEWS GOULDS PUMPS INC GOULDS PUMPS INC SENECA FALLS NY SEAN P MURPHY 46 YEARS OLD FORMERLY EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF WESTCAN CHROMALOX INC A UNIT OF GLEN DIMPLEX GROUP OF DUBLIN IRELAND WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS MAKER OF CENTRIFUGAL PUMPS FOR INDUSTRIAL AGRICULTURAL COMMERCIAL AND CONSUMER MARKETS HE SUCCEEDS JOHN M MORPHY 46 WHO WILL CONTINUE AS GROUP VICE PRESIDENT OF THE COMPANY'S INDUSTRIAL PRODUCTS GROUP 9308120125 930812 WHO'S NEWS DART GROUP'S CHIEF FACES ANOTHER BATTLE AS FAMILY SPLINTERS HAFT MATRIARCH SEEKS TO SPLIT RETAIL REAL ESTATE EMPIRE AFTER SUCCESSION DISPUTE BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DART GROUP CORP CHAIRMAN HERBERT HAFT WHOSE FAMILY WAS RIVEN IN A BITTER DISPUTE WHEN HE BLOCKED HIS ELDER SON ROBERT FROM TAKING OVER THE FAMILY EMPIRE NOW FACES ANOTHER BATTLE HIS WIFE GLORIA IS SEEKING TO END THEIR 45YEAR MARRIAGE AND GAIN CONTROL OF PART OF THE FAMILY'S RETAILING AND REAL ESTATE EMPIRE THE 66YEAROLD MRS HAFT FILED TUESDAY FOR LEGAL SEPARATION AS A STEP TOWARD DIVORCE CHARGING HER 72YEAROLD HUSBAND WITH PHYSICAL ABUSE INFIDELITY AND WHAT AMOUNTS TO FINANCIAL INTIMIDATION THIS IS THE TRAGIC STORY OF THE END OF THE MARRIAGE AND DESTRUCTION OF THE FAMILY AND FINANCIAL EMPIRE BY MR HAFT AS HE TAKES ACTION TO SEIZE PERMANENT AND UNILATERAL CONTROL OF THAT FINANCIAL EMPIRE GLORIA HAFT SAID IN COURT PAPERS IN HER 28PAGE COMPLAINT IN WASHINGTON DC SUPERIOR COURT MRS HAFT SEEKS A SPLIT OF THE HAFTS' MARITAL PROPERTIES THAT WOULD GIVE HER EITHER CONTROL OF DART AND THE PUBLICLY TRADED COMPANIES IT CONTROLS CROWN BOOKS CORP AND TRAK AUTO CORP OR CONTROL OF THE HAFT FAMILY'S CLOSELY HELD BUSINESSES INCLUDING COMBINED PROPERTIES INC A REAL ESTATE FIRM MRS HAFT'S COMPLAINT WHICH WAS FIRST REPORTED BY THE WASHINGTON POST SAYS HER MARRIAGE BEGAN TO CRUMBLE IN THE SPRING OF 1991 AFTER MR HAFT HAD HEART PROBLEMS AND CHANGED HIS BEHAVIOR TOWARD HER SHE CHARGES THAT AMONG OTHER THINGS MR HAFT PHYSICALLY ASSAULTED HER THAT HE FLAUNTED HIS AFFAIRS WITH OTHER WOMEN THROUGHOUT THE MARRIAGE AND THAT HE COMMITTED A SERIES OF VENGEFUL AND WILLFUL ACTIONS ORCHESTRATED TO PUBLICLY HUMILIATE HER SINCE EARLY JUNE THE HAFT FAMILY HAS BEEN TORN APART IN AN ESCALATING FEUD AFTER HERBERT HAFT CHANGED HIS MIND ABOUT TURNING OVER DART TO HIS 40YEAROLD SON ROBERT WHOM HE LATER ACCUSED OF MAKING A POWER PLAY TO TAKE CONTROL OF DART AS DART'S CONTROLLING SHAREHOLDER HERBERT HAFT OUSTED HIS WIFE ROBERT HAFT AND OTHER DIRECTORS WHO SUPPORTED THEM AND NAMED NEW DIRECTORS AT DART CROWN BOOKS AND TRAK AUTO HE THEN STRIPPED ROBERT FROM HIS POSTS AT THE FAMILY BUSINESSES REPLACING HIM WITH 34YEAROLD SON RONALD HAFT WHO IS NOW DART'S PRESIDENT AND CHIEF OPERATING OFFICER IN RESPONSE TO MRS HAFT'S LITIGATION HERBERT HAFT SAID IN A STATEMENT THERE IS NO TRUTH WHATSOEVER TO GLORIA'S ALLEGATIONS OF PHYSICAL ABUSE OR HER ALLEGATIONS OF HIS IRRATIONAL BEHAVIOR HE DEFENDED HIS RECENT ACTIONS AFFECTING THE FAMILY'S BUSINESSES WHICH HAVE BEEN DESIGNED SUCCESSFULLY I HOPE TO PROTECT ALL OF THE MEMBERS OF THE FAMILY FROM WHAT CAN BEST BE DESCRIBED AS A CHILDISH TANTRUM' BY ROBERT WHEN I REFUSED TO RETIRE AND TURN OVER CONTROL OF OUR FAMILY ASSETS TO HIM MR HAFT ALSO SAID THERE IS NO TRUTH TO HIS WIFE'S CHARGES THAT HE HAS ATTEMPTED TO DEPRIVE HER OF HER RIGHTFUL SHARE OF FAMILY PROPERTY AND THAT HIS ACTIONS HAVEN'T HURT FAMILY MEMBERS OR SHAREHOLDERS MRS HAFT AND ROBERT HAFT HAVE EMBARKED ON WHAT HE CHARACTERIZED AS A COORDINATED MEDIA CAMPAIGN OF LIES MADE UP TO DESTROY ME AND RONALD BECAUSE I REFUSED TO ANNOINT ROBERT MY SUCCESSOR MRS HAFT HAS CHARGED IN COURT PAPERS THAT HER HUSBAND MADE A CALCULATED EFFORT TO REMOVE ASSETS FROM THE MARITAL ESTATE AND CONTROL OF THE COURT SHE ALSO ALLEGES THAT MR HAFT TOOK AN UNPRECEDENTED ACTION IN ISSUING TO HIS ALLY SON RONALD OPTIONS TO BUY 180000 NEW SHARES OF DART VOTING STOCK OR 375 OF DART'S SHARES OUTSTANDING THAT WOULD RAISE RONALD HAFT'S HOLDINGS OF DART VOTING SHARES TO 425 AND DILUTE HIS MOTHER'S HOLDINGS TO 113 FROM 18 THE HAFT FAMILY OWNS ALL THE VOTING SHARES IN HER COMPLAINT MRS HAFT IS ALSO SEEKING TO RESCIND ACTS TAKEN BY MR HAFT SINCE MARCH 1 WHICH SHE CLAIMED HAVE THE EFFECT OF DILUTING HER OWNERSHIP AND CONTROL IN THE HAFT BUSINESSES INCLUDING WHAT SHE CALLED A 45 MILLION SECRET BONUS PAID IN DECEMBER 1992 TO RONALD HAFT ALLEGEDLY FOR THE PURPOSE OF ENLISTING RONALD IN HERBERT'S ILLICIT SCHEME TO SEIZE CONTROL OF THE FAMILY'S REAL ESTATE HOLDINGS MRS HAFT ALSO SEEKS TO REMOVE THE RECENTLY ELECTED DART DIRECTORS CHOSEN BY MR HAFT AND REPLACE THEM WITH A SPECIAL FISCAL AGENT AND ONE OR MORE INDEPENDENT PEOPLE SELECTED BY THE COURT 9308120124 930812 WHO'S NEWS DIAL CORP DIAL CORP PHOENIX NORT RITTMASTER WAS APPOINTED TO THE NEW POST OF CHAIRMAN OF THIS COMPANY'S GES EXPOSITION SERVICES SUBSIDIARY MR RITTMASTER 58 YEARS OLD WAS FORMERLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GES AND WILL RETAIN HIS LATTER TITLE GERALD G ZWICK 50 SUCCEEDS MR RITTMASTER AS PRESIDENT AND ALSO WAS NAMED CHIEF OPERATING OFFICER A NEW POSITION MR ZWICK WAS FORMERLY SENIOR VICE PRESIDENT MANUFACTURING AND SERVICES AT DIAL THE COMPANY HAS INTERESTS IN CONSUMER PRODUCTS AND SERVICES AND TRANSPORTATION MANUFACTURING 9308120123 930812 INTERNATIONAL BRIEF HOOGOVENS NV SMALLERTHANEXPECTED LOSS FOR FIRST HALF IS REPORTED DUTCH STEEL MAKER HOOGOVENS NV REPORTED A FIRSTHALF NET LOSS OF 189 MILLION GUILDERS 978 MILLION SUBSTANTIALLY BROADER THAN THE YEAREARLIER LOSS BUT STILL AT THE LOW END OF EXPECTATIONS A YEAR EARLIER HOOGOVENS HAD A NET LOSS OF 49 MILLION GUILDERS AND IN APRIL IT SAID THIS YEAR'S FIRSTHALF LOSS MIGHT REACH 210 MILLION GUILDERS THE COMPANY'S STOCK SHOT UP 48 GUILDERS 248 ON THE NEWS CLOSING AT 513 GUILDERS AS HOOGOVENS FORECAST SECONDHALF IMPROVEMENTS IN ITS STEEL DIVISION THOUGH ADDING THAT ALUMINUM BUSINESS WILL LIKELY REMAIN DEPRESSED FIRSTHALF RESULTS REFLECT 25 MILLION GUILDERS OF EXTRAORDINARY CHARGES UP FROM THE YEAREARLIER PERIOD'S CHARGES OF SEVEN MILLION GUILDERS GLOBAL SALES FELL 95 IN THE FIRST HALF TO 353 BILLION GUILDERS 183 BILLION FROM A YEAREARLIER 39 BILLION GUILDERS 9308120122 930812 POLITICS & POLICY HOMELESS FAMILIES SEEN SPLITTING UP TO FIND SHELTER BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOMELESS FAMILIES ARE INCREASINGLY BEING FORCED TO SPLIT UP TO FIND EMERGENCY SHELTER ACCORDING TO A NEW REPORT BASED ON A SURVEY OF 19 CITIES ACROSS THE COUNTRY THE NATIONAL LAW CENTER ON HOMELESSNESS AND POVERTY AN ADVOCACY GROUP BASED HERE SURVEYED 147 PROGRAMS SHELTERS TRANSITIONAL HOUSING AND REFERRAL SERVICES SERVING MORE THAN 12000 HOMELESS FAMILIES A NIGHT IN THE 19 CITIES THE CENTER'S STUDY CALLED NO WAY OUT SAID THAT 41 OF THE PROGRAMS SURVEYED REPORTED THAT FAMILIES ARE BREAKING UP TO FIND EMERGENCY SHELTER BECAUSE OF OVERCROWDING AND AGE AND GENDER RESTRICTIONS AND THAT THE PROBLEM WAS WORSENING ONLY HALF OF THE FAMILY SHELTERS SURVEYED FOR EXAMPLE ACCEPT MEN OR TEENAGE BOYS FATHERS AND OLDER MALE CHILDREN ARE FORCED TO SPLIT OFF FROM THEIR FAMILIES DUE TO THE RESTRICTIONS AND WILL EITHER GO TO SINGLESEX SHELTERS TO RELATIVES OR TO THE STREETS THE REPORT SAID IN OTHER CASES MANY SINGLE MOTHERS WHO ARE HOMELESS ARE FORCED TO PLACE THEIR CHILDREN IN FOSTER HOMES OR WITH RELATIVES BECAUSE THEY ARE UNABLE TO FIND SHELTER FOR THE ENTIRE FAMILY AMONG THE OTHER FINDINGS MARIA FOSCARINIS DIRECTOR OF THE NONPROFIT GROUP SAID THE STUDY WAS IMPORTANT BECAUSE IT UNDERSCORES HOW POVERTY CAN LEAD TO THE INVOLUNTARY DISSOLUTION OF FAMILIES IN RECENT YEARS THE DEBATE ON POVERTY OFTEN FOCUSED ON A DIFFERENT PERSPECTIVE HOW THE DISINTEGRATION OF THE FAMILY CAN LEAD TO POVERTY THE CITIES SURVEYED INCLUDED ATLANTA CHICAGO INDIANAPOLIS MIAMI AND WASHINGTON 9308120121 930812 COMPUTERS IBM TRIES TO KEEP MAINFRAMES AFLOAT AGAINST TIDE OF CHEAP AGILE MACHINES BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL WHEN THE BILLIONAIRE HEAD OF A SOFTWARE POWERHOUSE DESCRIBES THE FUTURE OF COMPUTING HE PUTS HIS OWN BRASH SPIN ON THE CONVENTIONAL WISDOM THE MAINFRAME AND INTERNATIONAL BUSINESS MACHINES CORP ARE HEADED DOWN TOGETHER THIS MAINFRAME MUST BE GOOD FOR SOMETHING SAYS LARRY ELLISON CHAIRMAN OF ORACLE CORP BUT IT'S TOO EXPENSIVE TOO SLOW AND IT'S HARD TO USE AND WITHOUT THE MAINFRAME HE PREDICTS IBM WILL SOON BECOME ONE GREAT BIG COMPAQ BUT TO WILLIAM REEDY IBM'S SOFTSPOKEN GRAYHAIRED WORLDWIDE DIRECTOR OF MAINFRAME MARKETING THAT'S A BUM RAP THE MAINFRAME HE INSISTS WILL CONTINUE TO MAKE MONEY AND RUN AMERICA AND THE WORLD RESTORING THE MAINFRAME'S IMAGE IS JUST ONE OF IBM'S BATTLES THE BIG WATERCOOLED MACHINES BUILT IBM'S FAME AND FORTUNE AND GENERATED ABOUT A THIRD OF ITS 64 BILLION IN REVENUE AS RECENTLY AS LAST YEAR BUT THEY ARE TAKING A BIG BEATING WITH LOWERPRICED DESKTOP NETWORKS INVADING THE MARKET MAINFRAME REVENUE WILL CONTINUE TO DECLINE PROFIT MARGINS ARE BEING SQUEEZED MARKET SHARE IS SHRINKING AND A NEW TECHNOLOGY CALLED PARALLEL PROCESSING LASHING TOGETHER MICROPROCESSORS TO CREATE SUPER COMPUTING POWER AND PERFORM MANY TASKS AT ONCE THREATENS ANOTHER SLICE OF THE MARKET AND IS LIKELY ONE DAY TO GOBBLE IT ALL IBM'S COUNTERATTACK IS THREEPRONGED IT IS REDESIGNING MAINFRAMES NOW ESSENTIALLY CUSTOMBUILT TO MAKE THEM CHEAPER AND LESS PROPRIETARY IN TWO OR THREE YEARS THEY ARE EXPECTED TO BE ROLLING OFF THE ASSEMBLY LINE LIKE MODEL T FORDS BUILT EFFICIENTLY WITH PARTS THAT ARE INTERCHANGEABLE WITH OTHER MODELS SUCH AS PERSONAL COMPUTERS AT THE SAME TIME IBM IS PROMOTING NEW USES FOR MAINFRAMES AS SERVERS FOR EXAMPLE AND IBM ALSO IS LOOKING FURTHER AHEAD CAPPING TWO YEARS OF DEVELOPMENT IT WILL SOON ANNOUNCE TWO PARALLEL PROCESSING MODELS AIMED AT THE COMMERCIAL MARKET EVENTUALLY THEY MAY VERY WELL CANNIBALIZE THE MAINFRAME LINE NICK DONOFRIO IBM'S CHIEF OF ENTERPRISE SYSTEMS SAYS HE PLANS OVER TWO YEARS TO BRING MAINFRAMES NOW ABOUT THE SIZE OF A JEEP DOWN TO THE SIZE OF A DESK THEY WILL RUN ON A CHIP USED IN PERSONAL COMPUTERS AND WORKSTATIONS CALLED CMOS FOR COMPLEMENTARY METALOXIDE SEMICONDUCTOR BECAUSE CMOS CIRCUITRY CONSUMES LESS POWER IBM AND OTHERS BELIEVE IT CAN MAKE BIG IRON COMPETITIVE AGAIN BY ELIMINATING THE EXTENSIVE WATERCOOLING SYSTEMS THAT DRIVE UP THE COST OF CURRENT MAINFRAMES MACHINES THAT NOW COST 1 MILLION WILL COST 100000 SAYS MR DONOFRIO THEY WILL BECOME INDISPENSABLE HE PREDICTS BY PROCESSING PAYROLLS ACCOUNTS RECEIVABLE AND INVENTORIES AT NIGHT THEN FIRING THE DATA OUT DURING THE DAY AS SOPHISTICATED SERVERS TO NETWORKS OF DISPERSED WORKSTATIONS BUT WHILE CHEAPER MACHINES ARE GOOD NEWS FOR BUYERS FROM A FINANCIAL PERSPECTIVE THEY WOULD COMPOUND IBM'S PROBLEMS THE COMPANY WOULD HAVE TO SELL 10 TIMES AS MANY UNITS JUST TO RUN IN PLACE EVEN MR DONOFRIO WHO SEES MANY MORE USES FOR THE CHEAPER MACHINES SAYS THAT REVENUE WILL DECLINE AND COMPETITION WILL BE FIERCE ALREADY AMERICAN TELEPHONE & TELEGRAPH CO'S NCR CORP SILICON GRAPHICS INC DIGITAL EQUIPMENT CORP NCUBE CORP AND TANDEM COMPUTERS INC ARE SELLING MACHINES THAT DO A LOT OF THE THINGS THAT MAINFRAMES DO FOR A LOT LESS THE BIGMACHINE MARKET IS ALSO LIKELY TO BE AS CUTTHROAT AS THE PC MARKET WHERE PROFIT MARGINS ARE CONTINUALLY BEING SQUEEZED BY COMPETITORS LEAPFROGGING ONE ANOTHER UNDETERRED MR DONOFRIO ALREADY IS TESTING A MULTIMEDIA APPLICATION FOR MAINFRAMES KNOWN AS VIDEO ON DEMAND EARLY NEXT YEAR UNDER AN AGREEMENT WITH AMERITECH CORP THE CHICAGOBASED BABY BELL IBM'S LATEST GENERATION WILL DELIVER FULLLENGTH MOTION PICTURES STRAIGHT TO HOME TELEVISIONS OVER PUBLIC TELEPHONE LINES WE'RE TRANSFORMING THIS BUSINESS AS FAST AS WE CAN AND IN EVERY WAY WE CAN SAYS MR DONOFRIO THAT MAY NOT BE FAST ENOUGH THOUGH ORACLE'S MR ELLISON IS PROMOTING HIS PARALLEL DATABASE SOFTWARE AS THE CHEAPEST WAY TO PROVIDE VIDEO ON DEMAND U S WEST INC WILL SOON TEST ORACLE'S MULTIMEDIA DELIVERY SYSTEM AND HE SAYS HE IS TALKING TO OTHER PHONE COMPANIES IBM ALSO NEEDS TO COMPLETE ITS TRANSITION TO CMOS AHEAD OF ITS COMPETITORS PRIMARILY AMDAHL CORP AND HITACHI DATA SYSTEMS THEY ARE STRUGGLING WITH THE SAME REVENUE COLLAPSE AND PROFIT SQUEEZE AS IBM AMDAHL WON'T COMMENT ON DEVELOPMENT PLANS BUT SAYS SO FAR IT IS ONLY LOOKING AT CMOS HITACHI SAYS IT'S IN THE MIDDLE OF THE TRANSITION WHICH IT STARTED IN 1985 AND EXPECTS TO COMPLETE FOR ITS HIGHESTEND MAINFRAMES IN FIVE YEARS OR SO BY THE END OF THIS YEAR IBM SAYS IT WILL HAVE CUT EMPLOYEES AND PLANTS ASSOCIATED WITH MAINFRAMES BY 40 PRIMARILY IN THREE LOCATIONS IN THE MIDHUDSON VALLEY IN JULY THE MAINFRAME WORK FORCE STOOD AT 13800 EMPLOYEES DOWN FROM 26400 IN 1990 AND A PEAK 31306 IN 1984 MORE CUTS ARE EXPECTED IN EUROPE THIS YEAR IBM EXPECTS TO SHED STILL MORE WHEN IT COMPLETES THE CMOS TRANSITION IN THE NEXT TWO YEARS IT'S THE MOTHER OF ALL TRANSITIONS SAYS JAMES CASSELL A MAINFRAME WATCHER AT GARTNER GROUP A STAMFORD CONN CONSULTING FIRM THEY HAVE A CHANCE IT ISN'T GOING TO BE EASY AND IT ISN'T 100 THEY'LL WIN THE QUESTION IS CAN THEY DO IT QUICKLY ENOUGH NOT EVEN IBM ARGUES THAT THE MAINFRAME IS THE KEY TO THE FUTURE IT'S A MATURE BUSINESS WITH FEW POTENTIAL FIRSTTIME BUYERS IT WILL NEVER RECLAIM THE GROWING DESKTOP MARKET IT'S NOT EVEN THE FLAGSHIP PRODUCT ANYMORE HAVING CEDED THAT POSITION ABOUT FIVE YEARS AGO TO WORKSTATIONS BUT MAINFRAMES ARE SUCH A HUGE PART OF IBM'S REVENUE THAT IT CAN'T AFFORD TO LET THEM DIE AND THEY POSE A MAJOR TEST FOR IBM'S NEW CHAIRMAN LOUIS V GERSTNER IN THE BELIEF THAT MANAGEMENT NOT TECHNOLOGY IS THE PROBLEM HE HAS DECIDED TO BLOCK AND TACKLE FIRST TO MAKE BUSINESSES COMPETITIVE THEN HE'LL SEE WHERE MAINFRAMES FIT IN THE EMERGING TECHNOLOGY PICTURE MEANWHILE THE WORLD HAS AN ESTIMATED 1 TRILLION INVESTMENT IN MAINFRAMES THAT ISN'T GOING AWAY SOON ANALYSTS ESTIMATE THERE ARE ROUGHLY 50000 IN THE WORLD TODAY 60 OF THEM MADE AND SOLD BY IBM THEY DO THE CRUCIAL CENTRALIZED DATA PROCESSING FOR LARGE COMPANIES RANGING FROM PAYROLLS TO AIRLINE RESERVATION SYSTEMS LARGELY AS A RESULT OF PRICE CUTTING IBM REPORTED SECONDQUARTER UNIT SALES OF MAINFRAMES WERE UP OVER THE FIRST QUARTER BUT DOWN FROM A YEAR EARLIER IN IBM'S MAINFRAME MANUFACTURING STRATEGY THE CMOS CHIPS ARE THE KEY THEIR PRODUCTION COSTS WILL BE SPREAD AROUND IBM AND SHARED BY EVERY BUSINESS LINE THAT USES THEM IBM WON'T NEED SPECIAL FOUNDRIES ANYMORE TO MAKE THE BIPOLAR CHIPS THAT MAINFRAMES CURRENTLY RUN ON IBM IS ALREADY SHIPPING LOWEND MAINFRAMES WITH CMOS CHIPS THE TRICK IS TO APPLY THE TECHNOLOGY TO HIGHEND MAINFRAMES HUNDREDS OF ENGINEERS IN KINGSTON NY ARE FRANTICALLY TRYING TO FIGURE OUT HOW TO PLACE MILLIONS OF CIRCUITS ON EACH CHIP IN JUST THE RIGHT CONFIGURATION MR DONOFRIO BELIEVES THEY WILL SUCCEED IN TWO YEARS MEANWHILE PARALLEL PROCESSING IS COMING ON FAST IBM MANY ANALYSTS AND MR ELLISON A MAJOR INVESTOR IN NCUBE A MASSIVELY PARALLEL PROCESSING MANUFACTURER ALL BELIEVE PARALLELISM WILL EVENTUALLY REPLACE MAINFRAMES ALTOGETHER INTERNATIONAL NETHERLANDS GROUP BANK ONE OF THE 10 LARGEST BANKS IN EUROPE IS IN THE PROCESS OF SWITCHING ALL THE MARKETING MANAGEMENT AND COMMERCIAL DATA OF ONE OF ITS UNITS OVER TO NCUBE MASSIVELY PARALLEL MACHINES FROM IBM MAINFRAMES BECAUSE THEY ARE FASTER AND CHEAPER MICHEL HOEVENAARS THE BANK'S TECHNOLOGY MANAGER SAYS HE DOESN'T ENVISION A COMPLETE CHANGEOVER FROM IBM MAINFRAMES IMMEDIATELY BUT IF PARALLEL PROCESSING CONTINUES TO WORK WELL HE SAYS THE BANK WILL EVENTUALLY MAKE A TOTAL TRANSFER 9308120119 930812 BUSINESS BRIEF KEITHLEY INSTRUMENTS INC COMPANY TO CUT ITS STAFF SETS FOURTHQUARTER CHARGE KEITHLEY INSTRUMENTS INC SAID IT WILL REDUCE ITS WORLDWIDE WORK FORCE AS MUCH AS 8 AND TAKE A CHARGE IN THE FISCAL FOURTH QUARTER THAT WILL REDUCE EARNINGS AS MUCH AS EIGHT CENTS A SHARE THE CUTS ARE SCHEDULED TO BE COMPLETED BY SEPT 30 WHEN THE COMPANY'S FISCAL YEAR ENDS KEITHLEY BASED IN SOLON OHIO EMPLOYS 679 PERSONS WORLDWIDE THE COMPANY MAKES HARDWARE AND SOFTWARE FOR TEST AND MEASUREMENT INSTRUMENTATION ITS CUSTOMERS ARE MAINLY UNIVERSITIES ELECTRONIC GEAR MANUFACTURERS AND THE SEMICONDUCTOR INDUSTRY KEITHLEY SAID SALES HAVE BEEN DECLINING SLIGHTLY DURING THE PAST THREE YEARS AS A RESULT OF LOWER DEMAND FOR ITS PRODUCTS FROM UNIVERSITIES AND ELECTRONIC MANUFACTURERS WHILE KEITHLEY SEES CONTINUED DEMAND FROM SEMICONDUCTOR COMPANIES THAT REPRESENTS A SMALL PORTION OF ITS BUSINESS IN THE YEARAGO FOURTH QUARTER KEITHLEY POSTED A LOSS OF 133 MILLION OR 379 A SHARE REFLECTING SPECIAL CHARGES 9308120118 930812 INTERNATIONAL WESTERN GERMAN RETAIL SALES WIESBADEN WESTERN GERMAN RETAIL SALES FELL A REAL 28 IN JUNE FROM A YEAR EARLIER BUT ROSE ABOUT 10 FROM MAY THE FEDERAL STATISTICS OFFICE SAID THE RETAIL PRICE INDEX ADJUSTED FOR INFLATION STOOD AT 1137 IN JUNE COMPARED WITH 1120 A MONTH EARLIER AND 1170 A YEAR EARLIER THE AGENCY ADDED IN NOMINAL TERMS OR BEFORE ACCOUNTING FOR INFLATION SALES WERE DOWN 13 IN JUNE FROM A YEAR EARLIER AND ALSO UP AROUND 10 FROM THE PREVIOUS MONTH THE AGENCY ADDED THE PRICE INDEX FOR NOMINAL SALES WAS AT 1291 IN JUNE COMPARED WITH 1276 IN MAY AND 1308 IN JUNE 1992 ADJUSTED FOR SEASONAL AND CALENDAR FACTORS WESTERN GERMAN RETAIL SALES ROSE ABOUT 05 IN BOTH NOMINAL AND REAL TERMS THE AGENCY SAID 9308120117 930812 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN LAX REGULATORY ENFORCEMENT MAY HAVE CONTRIBUTED TO THE WAREHOUSE EXPLOSIONS THAT ROCKED SHENZHEN LAST WEEK AND KILLED AT LEAST 15 PEOPLE AUTHORITIES IN THE PROSPEROUS SOUTHERN CHINESE CITY SAID EVIDENTLY SPARKED BY LEAKED NITRIC ACID THE BLASTS IGNITED A FIRE THAT RAGED FOR TWO DAYS DESTROYING DOZENS OF BUILDINGS HOSPITALIZING 101 PEOPLE 25 OF THEM STILL IN CRITICAL CONDITION LEAVING SEVEN OR EIGHT PEOPLE MISSING AND FORCING 150000 PEOPLE TO EVACUATE THEIR HOMES INITIAL REPORTS HAD PUT THE DEATH TOLL AT 70 PROPERTY DAMAGE WAS ESTIMATED AT 35 MILLION THE ACCIDENT WHICH IS STILL UNDER INVESTIGATION HAS TOUCHED OFF WORRIES THAT CHINA'S RAPID ECONOMIC GROWTH MAY HAVE COME AT THE EXPENSE OF SAFETY AND ENVIRONMENTAL CONSIDERATIONS SHENZHEN AUTHORITIES SAID THE WAREHOUSE CONTAINED EXPLOSIVE MATERIALS POSSIBLY VIOLATING LOCAL RULES THE OPERATION IS BELIEVED TO HAVE BEEN CONTROLLED BY A UNIT OF THE STATEOWNED CHINA FOREIGN TRADE NATIONAL DEVELOPMENT CORP A LABOR MINISTRY PANEL URGED JAPANESE COMPANIES TO MAKE IT EASY FOR THEIR EMPLOYEES TO BREAK WORKAHOLIC HABITS AND LIVE RICHER AND MORE VARIED LIVES THE ADVISORY BODY PROPOSED THAT THE PRIVATE AND PUBLIC SECTORS CONSIDER VOLUNTEER ACTIVITIES AS WELL AS WORK EXPERIENCE WHEN HIRING IT SAID EMPLOYERS SHOULD FAVORABLY ASSESS FOR PROMOTIONS THOSE WORKERS WHO HAVE GAINED ENRICHING EXPERIENCES THROUGH HOBBIES SPORTS AND VOLUNTEERISM IT ALSO CALLED FOR GIVING MEN TIME OFF TO CARE FOR THEIR CHILDREN OR ELDERLY RELATIVES THE MINISTRY WILL SUBMIT THE PROPOSALS TO ALL OTHER AGENCIES LOCAL GOVERNMENTS BUSINESSES AND ECONOMIC GROUPS TO SEEK COOPERATION CHINA'S HUNAN PROVINCIAL GOVERNMENT WILL AUCTION OFF 200 STATEOWNED COMPANIES NEXT MONTH AT A TRADE AND INVESTMENT SYMPOSIUM OPEN TO FOREIGN BUYERS ALL THE ENTERPRISES TO BE SOLD ARE FAILING BUT THE CHINA DAILY SAID THEY COULD BE PROFITABLE WITH BETTER MANAGEMENT AND NEW TECHNOLOGY OFFICIALS HOPE FOREIGN CASH AND TECHNOLOGY CAN RESCUE THE STATE SECTOR A THIRD OF GOVERNMENT FIRMS OPERATE AT A LOSS BECAUSE OF EXCESSIVE STAFF INFLEXIBLE MANAGEMENT AND BUREAUCRATIC INTERFERENCE RAILWAY WORKERS IN ROMANIA BEGAN A STRIKE JUST AS COAL MINERS ENDED A NINEDAY WALKOUT ABOUT 80 OF THE COUNTRY'S TRAIN MECHANICS ENGINEERS AND CONDUCTORS STAYED OFF THEIR JOBS SEEKING HIGHER WAGES INTERNATIONAL TRAINS WERE BLOCKED AT THE BORDER AND RURAL SERVICE WAS DISRUPTED THE MINERS' RETURN TO WORK WITHOUT HAVING WON ANY DEMANDS WAS A BLOW TO THEIR UNION WHICH SOUGHT TO REDIRECT FUNDS FOR PIT IMPROVEMENTS TO BIGGER SALARIES THOUGH MINERS ARE ALREADY AMONG THE HIGHESTPAID WORKERS IN ROMANIA COMMERCIAL LAND PRICES IN THREE JAPANESE METROPOLITAN AREAS CONTINUED TO SLIDE IN THE QUARTER ENDED JUNE 30 WHILE RESIDENTIAL PRICES FELL MODERATELY THE LAND INSTITUTE OF JAPAN A PRIVATE FOUNDATION SAID COMMERCIAL PRICES IN THE TOKYO OSAKA AND NAGOYA AREAS DROPPED BETWEEN 39 AND 53 FROM THE PREVIOUS QUARTER PRICES IN CENTRAL TOKYO SLUMPED 72 RESIDENTIAL LAND PRICES DECLINED BETWEEN 17 AND 24 IN THE THREE AREAS AND THOSE IN THE CAPITAL WERE OFF 49 ECONOMIC RECOVERY IS BEING HAMPERED BY THE REAL ESTATE OVERSUPPLY AND UNWILLINGNESS TO SELL AT A LOSS WITH PRICES DOWN FROM SPECULATIVE HEIGHTS OF THE LATE 1980S CHINA ISSUED REGULATIONS TO PREVENT CORRUPTION AT SECURITIES WATCHDOG AGENCIES AS PART OF EFFORTS TO BRING FLEDGLING MARKETS UP TO INTERNATIONAL STANDARDS THE RULES PROHIBIT MEMBERS OF THE STATE COUNCIL SECURITIES POLICY COMMITTEE AND THE CHINA SECURITIES REGULATORY COMMISSION FROM ACCEPTING BRIBES OR PROVIDING CONFIDENTIAL INFORMATION ABOUT STOCK MARKETS IN ADDITION NEW REGULATORY EMPLOYEES MUST SELL STOCK AND BOND HOLDINGS THAILAND CHINA LAOS AND BURMA AGREED TO COOPERATE IN DEVELOPING THEIR TOURISM FACILITIES AND WILL SEEK ASIAN DEVELOPMENT BANK FUNDS FOR A FEASIBILITY STUDY ON JOINT CONSTRUCTION OF A HIGHWAY LINKING THE FOUR COUNTRIES THE HIGHWAY WOULD CONSIST OF TWO ROUTES ONE CONNECTING THAILAND'S CHIANG RAI PROVINCE TO THREE BURMESE CITIES ALONG THE BORDER WITH CHINA'S YUNNAN PROVINCE THE SECOND ROUTE WOULD LINK ANOTHER AREA OF THAILAND WITH THREE CITIES ON THE LAOTIAN BORDER WITH CHINA THE ROAD ALSO COULD BOOST TRADE AND ECONOMIC COOPERATION AMONG THE FOUR NATIONS CHINA'S LANDLOCKED YUNNAN PROVINCE HAS LONG SOUGHT MORE CONVENIENT ACCESS TO THE SEA THROUGH SOUTHEAST ASIAN NATIONS OTHER PACTS COVER NEW AVIATION SERVICES AND THE AUG 23 LAUNCHING OF REGULAR PASSENGERSHIP RUNS ON THE MEKONG RIVER BETWEEN CHIANG SAEN IN THAILAND AND SIMAO IN CHINA VIA LAOS THAILAND OPENED A TRADE SHOW IN SOUTH AFRICA ITS FIRST IN THAT COUNTRY TWO YEARS AFTER BANGKOK LIFTED ANTIAPARTHEID SANCTIONS TWOWAY TRADE LAST YEAR TOTALED 52 MILLION MOST OF IT THAI EXPORTS TO SOUTH AFRICA MALARIABEARING MOSQUITOES IN THE MOSCOW AREA HAVE INCREASED SHARPLY AND DOCTORS ADVISED TAKING PROTECTIVE MEASURES DISEASES THAT WERE ONCE ALMOST ERADICATED IN RUSSIA ARE MAKING A COMEBACK AS THE STATE HEALTH SYSTEM CRUMBLES 9308120116 930812 TECHNOLOGY & HEALTH SCHERINGCHIRON DRUG FOR MS TO COST PATIENTS UP TO 10000 YEARLY NEW YORK SCHERING AG THIS WEEK TOLD AN INVESTOR GROUP HERE THAT A NEW DRUG TO QUELL FLAREUPS OF MULTIPLE SCLEROSIS WILL COST PATIENTS BETWEEN 8500 AND 10000 A YEAR CHIRON CORP OF EMERYVILLE CALIF MAKES THE DRUG CALLED BETASERON IT WILL BE SOLD BY BERLEX LABORATORIES A UNIT OF SCHERING WHICH IS BASED IN GERMANY CHIRON WHICH WILL BE PAID 30 OF BERLEX'S SALES SAID BERLEX SET THE PRICE MS WHICH AFFECTS ABOUT 300000 AMERICANS IS A DEGENERATIVE NERVE DISORDER THAT LIMITS SENSATION AND MOVEMENT BETASERON IS APPROVED FOR ABOUT A THIRD OF PATIENTS AFFECTED THE ANNOUNCEMENT PLACES THE DRUG PRICE AT THE HIGH END OF ANALYSTS' ESTIMATES WHICH HAD RANGED FROM 5000 TO 12000 TRIGGERING A LETTER OF CONCERN FROM SENS DAVID PRYOR D ARK AND WILLIAM COHEN R MAINE IN THEIR LETTER TO THE EXECUTIVES OF BERLEX AND CHIRON SENS COHEN AND PRYOR SAID THEY HOPED THE FINAL PRICE OF BETASERON REFLECTS A REASONABLE RATE OF RETURN AND EXPRESSED WORRIES ABOUT THE 53 OF MS PATIENTS WHO AREN'T ADEQUATELY INSURED TRIGGERING LIKELY COST SHIFTS TO THE GOVERNMENT THEY ASKED THE COMPANY TO SUPPLY MORE DETAILS ABOUT DEFERRED BILLING AND OTHER PATIENTSUPPORT PROGRAMS INCLUDING PLANS TO GIVE THE DRUG FREE TO INDIGENT PATIENTS 9308120115 930812 BUSINESS BRIEF ASSET INVESTORS CORP FIRM TO CREATE NEW REIT IN COMMERCIAL REAL ESTATE ASSET INVESTORS CORP SAID IT WOULD CREATE A NEW REAL ESTATE INVESTMENT TRUST COMMERCIAL ASSETS INC TO ACQUIRE AND MANAGE A PORTFOLIO OF OWNERSHIP INTERESTS IN COMMERCIAL REAL ESTATE SECURITIES THE DENVER REIT SAID IT WILL CONTRIBUTE 75 MILLION TO THE NEW COMPANY'S CAPITAL FOR 100 OF ITS SHARES ASSET INVESTORS SAID IT WILL DISTRIBUTE 70 OF THE SHARES TO ITS STOCKHOLDERS IN A TAXABLE DIVIDEND ASSET INVESTORS SAID IT EXPECTS THE RECORD DATE TO BE LATER IN THE CURRENT THIRD QUARTER OR EARLY IN THE FOURTH QUARTER IN MARCH ASSET INVESTORS SAID THAT ITS 1992 INCOME WAS HIGHER THAN ORIGINALLY BELIEVED BECAUSE OF CHANGES IN MORTGAGE INTEREST RATES AND REPAYMENT RATES AS A RESULT THE COMPANY SAID THAT TO COMPLY WITH FEDERAL TAX CODES IT WOULD MAKE SUBSTANTIAL ADDITIONAL DIVIDEND DISTRIBUTIONS RESTRUCTURE ITS BUSINESS AND EXPLORE INVESTMENT OPPORTUNITIES IN COMMERCIAL REAL ESTATE ASSET INVESTORS SAID THE CREATION OF COMMERCIAL ASSETS ALLOWS IT TO MAKE THE REQUIRED DIVIDEND DISTRIBUTIONS AND PRESERVE ITS FAVORABLE TAX STATUS AS A REIT 9308120114 930812 EXCHANGE SPECIALISTS ARE REQUIRED TO ABIDE BY SEC CAPITAL RULES WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION VOTED TO REQUIRE ALL STOCKEXCHANGE SPECIALISTS TO ABIDE BY THE COMMISSION'S NET CAPITAL RULES THE REQUIREMENT DISPENSES WITH THE LAST BIT OF HOUSEKEEPING LEFT FROM THE OCTOBER 1987 STOCKMARKET CRASH THE CRASH TEMPORARILY CRIPPLED MANY NEW YORK STOCK EXCHANGE SPECIALISTS ACCORDING TO THE BRADY COMMISSION THE PRESIDENTIAL TASK FORCE THAT STUDIED THE CRASH SPECIALISTS WHO MAKE MARKETS IN CERTAIN ASSIGNED STOCKS ARE CHARGED WITH MAINTAINING ORDERLY MARKETS BY BUYING STOCK WHEN THERE ARE TOO FEW BUYERS AND SELLING STOCK WHEN THERE AREN'T ENOUGH SELLERS IN THE WAKE OF THE CRASH THE EXCHANGES BEEFED UP THEIR NET CAPITAL RULES FOR ALL BUT A HANDFUL OF SPECIALISTS EXCLUDING THOSE WHO HAD NO RETAIL CUSTOMERS BUT THE SEC SINCE 1988 HAS WANTED TO MAKE THE NET CAPITAL RULES STANDARD AND UNIVERSAL THE SEC'S DIRECTOR OF MARKET REGULATION BRANDON BECKER SAID THE NEW CAPITAL RULE WILL APPLY TO ABOUT 150 SPECIALIST FIRMS ALL FIRMS WILL BE REQUIRED TO REPORT TO THE SEC WHEN THEY FORESEE TROUBLE IN THEIR FINANCIAL CONDITIONS MOST SPECIALISTS WILL VIEW THIS AS JUST ANOTHER FORM TO FILL OUT MR BECKER SAID 9308120112 930812 YOUR MONEY MATTERS THE NEW TAX LAW SEARCHING FOR SHELTER SOME PARTNERSHIP INVESTMENTS OFFER ATTRACTIONS BUT THERE ARE DRAWBACKS BY KAREN SLATER DAMATO STAFF REPORTER OF THE WALL STREET JOURNAL THE NEW TAX LAW IS SPURRING A LOT OF TALK ABOUT SHELTERING INCOME WELLOFF AMERICANS FACING BIGGER TAX BILLS ARE ASKING THEIR ADVISERS ABOUT INVESTMENTS AND TECHNIQUES TO EASE THE PAIN TAX SPECIALISTS ARE COMPARING NOTES ON POTENTIAL LOOPHOLES AND FINANCIAL PLANNERS SAY THEY ARE GETTING MORE MAIL AND PHONE CALLS FROM LIMITEDPARTNERSHIP SPONSORS TOUTING THE TIMELINESS AND TAX ADVANTAGES OF THEIR WARES SALES OF SOME EXISTING TAXFAVORED INVESTMENTS INCLUDING LOWINCOME HOUSING PARTNERSHIPS ARE LIKELY TO RISE THERE ARE ALSO A COUPLE OF NARROW NEW OPPORTUNITIES PROVIDED BY THE LAW BUT TAX SPECIALISTS SAY THE NEW LAW DEFINITELY DOESN'T OPEN THE DOOR TO A RETURN OF THE HIGHWRITEOFF HIGHPERIL TAX SHELTER PARTNERSHIPS THAT PROLIFERATED BEFORE THE 1986 TAX ACT CRACKED DOWN I DON'T SEE ANY KIND OF RESURGENCE OF TAX SHELTERS NO WAY SAYS ROBERT WILLENS A TAX SPECIALIST AND MANAGING DIRECTOR AT LEHMAN BROTHERS ALTHOUGH HE'S BEEN SCOURING THE LAW FOR BIG NEW LOOPHOLES THAT MIGHT ALLOW SUCH SHELTERS MR WILLENS SAYS THEY ARE JUST NOT THERE THE ABSENCE OF CLASSIC SHELTERS IS ACTUALLY GOOD NEWS FOR INDIVIDUALS MANY SHELTERS FROM THE EARLY 1980S PROVIDED BIG TAX SAVINGS UP FRONT BUT THEY WERE INVESTMENT DISASTERS AND SADDLED HOLDERS WITH STEEP TAX BILLS LATER ON BROKERAGE FIRMS HAVE BEEN DELUGED WITH LAWSUITS AND ARBITRATION CLAIMS FILED BY AGGRIEVED PARTNERSHIP INVESTORS SIMILARLY INVESTORS SHOULD BE WARY WHEN ENCOURAGED TO BUY NEWER TYPES OF PARTNERSHIPS INSURANCE PRODUCTS AND OTHER TAXADVANTAGED INVESTMENTS IN RESPONSE TO THIS LAW ALTHOUGH SOME PRODUCTS DO INDEED ENJOY ATTRACTIVE TAX TREATMENT THEY TYPICALLY ALSO HAVE DRAWBACKS SUCH AS BIG FEES AND LONG HOLDING PERIODS WITH LIMITED LIQUIDITY CONSIDER SUCH INVESTMENTS BUT DON'T BE BLINDED BY THE TAX ADVANTAGES SAYS STEVEN B ENRIGHT A RIVER VALE NJ FINANCIAL ADVISER IT'S THE OLD BROMIDE DON'T LET THE TAX TAIL WAG THE DOG ALSO WATCH OUT FOR MARKETING HYPE WILLIAM G BRENNAN A PARTNER AND FINANCIALPLANNING SPECIALIST WITH ACCOUNTANTS ERNST & YOUNG SAYS HE HAS ALREADY HEARD BROKERS SAYING THE HIGHER TAX RATES MAKE LOWINCOME HOUSING PARTNERSHIPS MORE VALUABLE THAT'S NOT TRUE THE PARTNERSHIPS DELIVER TAX CREDITS WHICH REDUCE ONE'S TAX BILL DOLLARFORDOLLAR AND WHICH HAVE THE SAME VALUE REGARDLESS OF RATES AN INVESTMENT IN LOWINCOME HOUSING ISN'T GOING TO SAVE YOU ANY MORE TAX THAN IT WOULD HAVE BEFORE HE ASSERTS AMONG LIMITED PARTNERSHIPS THE LOWINCOME HOUSING PROGRAMS ARE EXPECTED TO SEE THE BIGGEST SALES GAINS IN COMING MONTHS ONE REASON IS THAT THE LAW PERMANENTLY EXTENDS THE CREDIT PROGRAM FOR INVESTORS WHO BUILD OR SUBSTANTIALLY REHABILITATE QUALIFYING APARTMENT COMPLEXES AN INVESTOR WHO PUTS 10000 INTO A LOWINCOME HOUSING PROGRAM CAN EXPECT TO REAP ABOUT 15000 IN TAX CREDITS OVER ROUGHLY 12 YEARS THAT'S AN AFTERTAX INTERNAL RATE OF RETURN OF ABOUT 8 FROM THE CREDITS PARTNERSHIP SPONSORS SAY THE DOWNSIDE INVESTORS MAY NEVER GET ANY CASH DISTRIBUTIONS FROM THE PROGRAMS AND THEIR MONEY WILL GENERALLY BE TIED UP FOR 15 TO 20 YEARS SOME FINANCIAL PLANNERS SAY THE POTENTIAL RETURNS JUST AREN'T HIGH ENOUGH TO COMPENSATE FOR THAT ILLIQUIDITY SALES OF LOWINCOME HOUSING PROGRAMS HAVE SURGED IN RECENT MONTHS AS TAXBILL NEGOTIATIONS PROMPTED MANY INVESTORS TO LOOK AT TAXORIENTED INVESTMENTS BIG SPONSOR BOSTON FINANCIAL GROUP SAYS ITS YEARTODATE SALES OF 100 MILLION ARE ALMOST DOUBLE LAST YEAR'S PACE AMONG THOSE EXPECTED TO BE RECOMMENDING LOWINCOME HOUSING PROGRAMS IN COMING MONTHS ARE BROKERS AT MERRILL LYNCH A FIRM THAT GENERALLY HASN'T OFFERED PARTNERSHIPS TO ITS CUSTOMERS IN THREE YEARS PARTNERSHIP INDUSTRY OFFICIALS SAY MERRILL LYNCH AND PAINEWEBBER ARE TEAMING UP TO SELL UNITS OF A LOWINCOME HOUSING PROGRAM TO BE MANAGED BY RICHMAN GROUP INC AND AWAITING SECURITIES AND EXCHANGE COMMISSION APPROVAL EXECUTIVES AT MERRILL PAINEWEBBER AND RICHMAN GROUP IN GREENWICH CONN DECLINED TO COMMENT ON THE PLANNED PROGRAM SEC FILINGS SHOW THAT THE OFFERING IS ACTUALLY ORGANIZED AS A DELAWARE BUSINESS TRUST A VEHICLE THAT WORKS VERY MUCH LIKE A PARTNERSHIP BUT LETS SELLERS AVOID THE TARNISHED PARTNERSHIP LABEL AMONG OTHER TYPES OF PARTNERSHIPS THERE'S A CHANCE THAT OILANDGAS DRILLING PROGRAMS WHICH HAVEN'T BEEN POPULAR IN RECENT YEARS MIGHT SEE INCREASED SALES WITH SOME OF THOSE PROGRAMS INVESTORS CAN DEDUCT MOST OF THEIR INITIAL INVESTMENT AND THOSE DEDUCTIONS BECOME MORE VALUABLE AT HIGHER TAX RATES SOME NEW PARTNERSHIPS OR MUTUAL FUNDS ARE LIKELY TO BE FORMED TO TAKE ADVANTAGE OF A NEW TAX BREAK FOR INVESTORS IN CERTAIN SMALL COMPANIES THE LAW LETS INVESTORS EXCLUDE FROM TAX AS MUCH AS HALF THEIR GAINS FROM SALES OF CERTAIN SMALLBUSINESS STOCKS HELD FOR AT LEAST FIVE YEARS THERE ARE A NUMBER OF LIMITATIONS BUILT INTO THE RULE BUT THERE IS ALSO LANGUAGE STATING THAT INVESTORS CAN REAP THE TAX BENEFIT WHEN THEY INVEST THROUGH PASSTHROUGH VEHICLES INCLUDING PARTNERSHIPS AND FUNDS PAINEWEBBER IS LOOKING INTO DEVELOPING A PARTNERSHIP OR FUND TO TAKE ADVANTAGE OF THAT POSITION ACCORDING TO STEPHEN H HAMRICK SENIOR VICE PRESIDENT HE SAYS ANY SUCH OFFERING WOULD PROBABLY REQUIRE A HIGH MINIMUM INVESTMENT AND BE RESTRICTED TO SOPHISTICATED INVESTORS WHO COULD TOLERATE THE HIGH RISKS OF INVESTING IN STARTUP FIRMS AT PARTNERSHIP SPONSOR TECHNOLOGY FUNDING IN SAN MATEO CALIF EXECUTIVE FRANK POPE SAYS THE NEW CAPITALGAINS TREATMENT SHOULD ENHANCE THE RETURNS AND HOPEFULLY ALSO BOOST SALES OF THE FIRM'S VENTURECAPITAL PARTNERSHIPS MEANWHILE TAX SPECIALISTS WORKING OVERTIME TO IDENTIFY NEW PLANNING OPPORTUNITIES HAVE HIT ON SOMETHING FOR A VERY NARROW UNIVERSE OF INDIVIDUALS HIGH EARNERS WHOSE SPOUSES ARE INVOLVED IN THE REALESTATE BUSINESS LET'S SAY ONE PERSON IS A HIGHBRACKET DOCTOR AND THE OTHER EARNS CONSIDERABLY LESS AS A REALESTATE BROKER IN RECENT YEARS IF THEY OWNED ANY RENTAL REALESTATE PROPERTIES THEY WERE GENERALLY BARRED FROM USING ANY RESULTING LOSSES TO OFFSET THE MEDICAL INCOME BUT THAT WOULD BE POSSIBLE IN THE FUTURE UNDER A PROVISION INTENDED TO BENEFIT REALESTATE DEVELOPERS THE NEW RULES ARE TOO NARROW TO LEAD TO MORE TAX SHELTERS SAYS LEHMAN BROTHERS POLITICAL ECONOMIST THOMAS D GALLAGHER BUT MR ENRIGHT THE NEW JERSEY PLANNER SAYS I WOULD BE VERY SURPRISED IF SOME DOCTORS DON'T JUMP ON THIS 9308120111 930812 LAW CONVENTION NOTES LAWYERS DECIDE THEY ALSO DON'T LIKE GETTING SUED BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LAW FIRMS SUED BY BANKING REGULATORS IN RECENT YEARS HAVE BEEN LIKE UNPOPULAR KIDS ON THE BLOCK FEW PEOPLE HAVE WANTED TO STICK UP FOR THEM IN PUBLIC BUT NOW THE NATION'S LARGEST LAWYERS' GROUP IS PULLING TOGETHER TO DENOUNCE WHAT IT SEES AS BULLYING TACTICS BY THE GOVERNMENT THE AMERICAN BAR ASSOCIATION IN ITS FIRST OFFICIAL RESPONSE TO LAWSUITS BLAMING LAW FIRMS FOR CONTRIBUTING TO THE COLLAPSE OF FINANCIAL INSTITUTIONS ACCUSED THE FEDERAL OFFICE OF THRIFT SUPERVISION OF BEING VINDICTIVE IN ITS LITIGATION STRATEGY AGAINST LAWYERS IN PARTICULAR THE BAR GROUP OBJECTED TO THE OTS'S INSISTENCE ON ORDERING AN IMMEDIATE ASSET FREEZE WHEN IT ACCUSED KAYE SCHOLER FIERMAN HAYS & HANDLER LAST YEAR OF DECEIVING REGULATORS IN THE LINCOLN SAVINGS & LOAN ASSOCIATION CASE THE BAR MAINTAINED THAT REGULATORS SHOULD NOT BE PERMITTED TO LIMIT FIRMS' ABILITY TO OPERATE WHILE A LAWYER IS REPRESENTING A CLIENT DURING A BANK EXAMINATION THE ABA'S RESOLUTION ON THE BANKING CASES PASSED BY A UNANIMOUS VOICE VOTE OF THE BAR'S POLICYMAKING BODY THIS OCCURRED ON THE LAST DAY OF THE WEEKLONG ANNUAL MEETING HERE OF THE 360000MEMBER GROUP PASSAGE MEANS THE ORGANIZATION WILL LOBBY FOR LEGISLATION LIMITING THE POWER OF ADMINISTRATIVE AGENCIES TO RESTRICT ACTIVITIES OF PROFESSIONAL FIRMS WHILE THE RESOLUTION DIDN'T EXPRESS A VIEW OF THE UNDERLYING FACTS IN THE KAYE SCHOLER MATTER IT SAID A FREEZE ORDER SHOULDN'T HAVE BEEN USED IN THAT CASE WHICH SETTLED FOR 41 MILLION SOON AFTER THE FREEZE WAS IMPOSED SOME KAYE SCHOLER LAWYERS HAD TERMED THE FREEZE A PRESSURE TACTIC TO COERCE THEM INTO SETTLING WE FOCUSED ON THE EMANATIONS OF THE CASE THAT SENT SHIVERS THROUGH THE LEGAL PROFESSION SAID LAWRENCE J FOX A MEMBER OF AN ABA WORKING GROUP FORMED IN THE DAYS AFTER THE KAYE SCHOLER LAWSUIT WAS FILED IF FREEZE ORDERS ARE TO BE USED AT ALL THEY SHOULD BE OBTAINED IN COURT AND ONLY UPON PROOF THAT A FIRM IS LIKELY TO IMPROPERLY TRANSFER ASSETS WHILE THE CASE IS PENDING THE RESOLUTION SAID BASICALLY YOU'VE GOT TO BE READY TO PROVE THAT THE FIRM IS ABLE TO PICK UP AND GO TO BRAZIL SAID MR FOX A PARTNER AT PHILADELPHIA'S DRINKER BIDDLE & REATH THE ABA'S RESOLUTION ALSO CRITICIZED THE GOVERNMENT FOR INSISTING THAT LAWYERS THAT REPRESENT REGULATED INSTITUTIONS MUST IN EFFECT POLICE THE ACTIVITIES OF CORPORATE CLIENTS AND INDEPENDENTLY CHECK THE ACCURACY OF WHAT A CORPORATE OFFICIAL HAS TOLD THEM SUCH ISSUES WERE RAISED IN A MALPRACTICE LAWSUIT LAST YEAR BY THE RESOLUTION TRUST CORP AGAINST THE BIG CLEVELAND LAW FIRM JONES DAY REAVIS & POGUE WHICH SETTLED FOR 51 MILLION SEVERAL MONTHS AGO THE ISSUES ARE SAID TO BE PART OF A DISPUTE BETWEEN THE RTC AND PAUL WEISS RIFKIND WHARTON & GARRISON OVER THE NEW YORK FIRM'S WORK FOR CENTRUST SAVING BANK NO CHARGES HAVE BEEN FILED IN THAT CASE BUT SETTLEMENT TALKS ARE UNDER WAY RESPONDING TO THE ABA'S VOTE CAROLYN LIEBERMAN ACTING CHIEF COUNSEL OF THE OTS SAID THEY'RE TRYING TO RECOMMEND SWEEPING CHANGES IN THE BANKING ENFORCEMENT LAW ANYTHING THAT LIMITS OUR ABILITY TO RECOVER FUNDS IS CONTRARY TO OUR INTEREST IN PROTECTING THE TAXPAYER IN OTHER SERIOUS BUSINESS DELEGATES VOTED TO SUPPORT A ZOE BAIRD AMENDMENT TO THE US IMMIGRATION AND NATURALIZATION ACT THAT WOULD CREATE A NEW VISA CATEGORY FOR HOUSEHOLD CAREGIVERS AND MAKE IT EASIER TO EMPLOY THEM LEGALLY IN RESPONSE TO THE NAVY'S TAILHOOK SEXUAL HARASSMENT SCANDAL THE BAR URGED AMENDING THE UNIFORM CODE OF MILITARY JUSTICE TO EXPRESSLY PROHIBIT SEXUAL HARASSMENT OF MILITARY SUBORDINATES BY THEIR SUPERIORS THE GROUP VOTED AGAINST ANY EFFORT TO RECONSIDER THE ABA'S ENDORSEMENT OF ABORTION RIGHTS AND VOICED ITS SUPPORT FOR REMOVING OBSTACLES TO VOTING REGISTRATION OF HOMELESS PERSONS ANITA HILL BIANCA JAGGER AND GERALDINE FERRARO PARTICIPATED IN A MOCKARBITRATION OF THE BOSNIA CRISIS ONE OF NEARLY 2000 PROGRAMS OFFERED AT VARIOUS NEW YORK HOTELS DURING THE CONVENTION IT WAS AMONG THE BETTERATTENDED SESSIONS DRAWING ABOUT 250 PEOPLE INCLUDING CURIOUS NONLAWYERS WHO DRIFTED IN AND OUT OVER THE COURSE OF THREE HOURS NO CONSENSUS WAS ACHIEVED AS USUAL NIGHTS DURING THE CONVENTION ERUPTED INTO A BATTLE OF THE PARTIES ON SUNDAY NIGHT LAWYERS FILLED ROCKEFELLER PLAZA AND ON MONDAY MEMBERS OF THE ABA'S LITIGATION SECTION FERRIED TO A LAVISH AFFAIR AT ELLIS ISLAND NEW YORK'S PROSKAUER ROSE GOETZ & MENDELSOHN INVITED FRIENDS AND CLIENTS TO RADIO CITY MUSIC HALL AND THE MORRISTOWN NJ FIRM PITNEY HARDIN KIPP & SZUCH HOSTED REVELERS AT THE METROPOLITAN MUSEUM OF ART'S TEMPLE OF DENDUR SO THAT THINGS WOULDN'T SEEM TOO MUMMIFIED THE FIRM ALSO SET UP COMPUTER TERMINALS IN THE EGYPTIAN TEMPLE AT WHICH GUESTS COULD REGISTER THEIR OPINIONS ON A VARIETY OF LAWYERRELATED TOPICS ONE RESULT 34 OF LAWYERS SAID THAT PUBLIC IMAGE IS THE WORST PROBLEM FACING THE PROFESSION LAWYERS' IMAGE BEING WHAT IT IS THE CONVENTION'S NEW YORK HILTON HEADQUARTERS ATTRACTED SCORES OF HECKLERS WHO PUT ON A PEACEFUL DEMONSTRATION SUNDAY WAVING ANTILAWYER PLACARDS AND DISTRIBUTING FLYERS CALLING FOR LAW REFORM ONE MAN SHOUTED IT'S SAFE TO WALK THE STREETS THE MUGGERS HAVE LEFT IN FEAR BECAUSE THE ABA IS HERE THE CONVENTION ALSO ATTRACTED PEOPLE WHO SEE LAWYERS AS CLIENTS A TRADE SHOW FEATURED WARES BY COMPANIES THAT PUBLISH LAW BOOKS AND SELL LEGAL SOFTWARE AMONG OTHER PRODUCTS AT ONE EXHIBIT THE PRESIDENT OF A COMPANY THAT DELIVERS SUBPOENAS AND OTHER UNPLEASANT LEGAL PAPERS SET OUT TO PUT A HAPPIER FACE ON HIS BUSINESS ALAN DEMOVSKY'S BOOTH FEATURED A SMILING MALE BLOWUP DOLL A 12FOOT PROCESSSERVER WITH A LAWSUIT IN HIS OUTSTRETCHED HAND LOOMING OVER THE SLOGAN PEOPLE SERVING PEOPLE IN A RITE THAT TRADITIONALLY CLOSES THE GROUP'S ANNUAL MEETINGS THE GAVEL WAS PASSED TO NEW ABA PRESIDENT R WILLIAM IDE III A PARTNER AT THE ATLANTA LAW FIRM LONG ALDRIDGE & NORMAN MR IDE 53 YEARS OLD SUCCEEDS J MICHAEL MCWILLIAMS A PARTNER AT TYDINGS & ROSENBERG IN BALTIMORE AND WILL SERVE A ONEYEAR TERM 9308120109 930812 BUSINESS BRIEF KAISER ALUMINUM CORP AGREEMENT IS COMPLETED ON A JOINT VENTURE IN JAPAN KAISER ALUMINUM CORP SAID ITS KAISER ALUMINUM & CHEMICAL CORP UNIT FURUKAWA ELECTRIC CO AND ITOCHU CORP FINALIZED AN AGREEMENT TO FORM A JOINT VENTURE IN JAPAN ON MAY 24 KAISER AND THE TWO JAPANESE CONCERNS ANNOUNCED THEIR INTENTION TO FORM TOKYOBASED FURUKAWA KAISER FORGED PRODUCTS CO WHICH WILL DEVELOP DESIGN AND MARKET CAST AND FORGED ALUMINUM STRUCTURAL PARTS FOR THE GROUNDTRANSPORTATION INDUSTRY IN JAPAN AND OTHER ASIAN MARKETS THE HOUSTON MAKER OF ALUMINUM PRODUCTS SAID THAT IT WILL OWN A 475 STAKE IN THE JOINT VENTURE WITH AN EQUAL STAKE BEING HELD BY FURUKAWA A MAKER OF COPPER ALUMINUM AND OTHER NONFERROUS METAL PRODUCTS ITOCHU A TRADING CONCERN WILL OWN 5 OF THE JOINT VENTURE SAID KAISER WHICH IS 68OWNED BY HOUSTONBASED MAXXAM INC AN ALUMINUM FORESTPRODUCTS AND REAL ESTATE MANAGEMENT CONCERN 9308120108 930812 INTERNATIONAL YELTSIN FIRES OFF YET ANOTHER ROUND IN MOSCOW'S CEASELESS POLITICAL WARS BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW POLITICAL PINGPONG IS EMERGING AS THE RUSSIAN GOVERNMENT'S CHIEF GAME PLAN THIS SUMMER WITH PRESIDENT BORIS YELTSIN AND THE SOVIETSTYLE PARLIAMENT NOW VOLLEYING HARD FOR CONTROL OVER MR YELTSIN'S CRUCIAL PROGRAM FOR PRIVATIZATION MR YELTSIN EDGED AHEAD YESTERDAY PUBLISHING A DECREE HE SIGNED ON TUESDAY TO BOOST PRIVATIZATION THAT OVERTURNS PARLIAMENT'S AUG 6 ANTIPRIVATIZATION RESOLUTION THAT RESOLUTION HAD OVERTURNED MR YELTSIN'S JULY 26 DECREE THAT OVERRODE PARLIAMENT'S JULY 21 RESOLUTION THAT DEFEATED MR YELTSIN'S MAY 8 DECREE GUARANTEEING THE RIGHTS OF RUSSIAN CITIZENS TO PARTICIPATE IN PRIVATIZATION THE SITUATION HAS BEEN ACQUIRING COMICAL FEATURES PYOTR MOSTOVOI DEPUTY HEAD OF RUSSIA'S PRIVATIZATION AGENCY TOLD A RUSSIAN NEWSPAPER ROSSISKIE VESTIE THIS WEEK THE INTRAGOVERNMENT GAMES ARE A SERIOUS AND COSTLY DISTRACTION FROM THE PROCESS OF ECONOMIC AND POLITICAL REFORM IN ALMOST EVERY SPHERE FROM FINANCE TO THE ADOPTION OF A NEW CONSTITUTION POLICY IS BEING TRAMPLED IN THE POLITICAL FRAY PRESIDENT YELTSIN SAID TUESDAY HE EXPECTS A SHOWDOWN IN SEPTEMBER THAT WILL DETERMINE THE FATE OF THE AUTHORITY OF RUSSIA MEANTIME RUSSIANS AS WELL AS AID AGENCIES AND WOULDBE FOREIGN INVESTORS ARE LEFT TO COPE WITH UNCERTAIN AND CONTRADICTORY RULES AND REGULATIONS MAINLY IT'S THE PRESIDENT AND THE PARLIAMENT THAT HAVE BEEN FIGHTING FOR POWER FOR EXAMPLE WHEN MR YELTSIN LAST MONTH FIRED SECURITY MINISTER VIKTOR BARANNIKOV PARLIAMENT PASSED A RESOLUTION OPPOSING MR YELTSIN'S ACTION THE DISPUTE HAS BEEN REFERRED TO THE CONSTITUTIONAL COURT BUT WHETHER THAT DECISION WILL SERVE AS BINDING PRECEDENT IS AS UNCLEAR AS THE REST OF THE FIGHT MR YELTSIN IS RECRUITING SUPPORT FOR HIS NEW DRAFT CONSTITUTION WHICH HE HOPES TO HAVE RATIFIED THIS FALL THROUGH A PROCESS THAT IS ALSO UNCLEAR ANALYSTS ARE STILL TRYING TO UNDERSTAND THE POLITICAL ALLIANCES AND AIMS BEHIND LAST MONTH'S SUDDEN DECISION BY THE RUSSIAN CENTRAL BANK TO INVALIDATE ALL PRE1993 RUBLE NOTES THIS MOVE PITTED THE SUPPOSEDLY PARLIAMENTCONTROLLED CENTRAL BANK AGAINST PARLIAMENTARY SPEAKER RUSLAN KHASBULATOV THE RUBLE SWAP ALSO PROVOKED ANGRY DISAGREEMENT BETWEEN PRIME MINISTER VIKTOR CHERNOMYRDIN WHO BACKED THE CENTRAL BANK'S RUBLE POLICY AND DEPUTY PRIME MINISTER AND FINANCE MINISTER BORIS FYODOROV WHO OPPOSED IT CAUGHT IN THE MIDDLE WERE MILLIONS OF RUSSIANS WHO LINED UP FOR DAYS AT BANKS TRYING TO SWAP THEIR OLD RUBLES FOR NEW TO SOME EXTENT RUSSIAN ECONOMIC LIBERALIZATION HAS BEEN CREEPING AHEAD DESPITE THE POLITICAL MADHOUSE IN MOSCOW DEPUTY PREMIER ANATOLI CHUBAIS WHO HEADS THE PRIVATIZATION AGENCY REMINDED REPORTERS YESTERDAY THAT TENS OF MILLIONS OF RUSSIANS ALREADY HAVE A STAKE IN PRIVATIZATION THEY HAVE INVESTED IN FORMER STATE PROPERTY OR HOLD VOUCHERS THAT ENABLE THEM TO DO SO MR CHUBAIS SAID IT REMAINS A BIG QUESTION THOUGH HOW PUBLIC UNHAPPINESS MIGHT TRANSLATE INTO POLITICAL MOMENTUM FOR FURTHER REFORM IN MOSCOW IN AN INTERVIEW IN MOSCOW LAST WEEK HARVARD ECONOMIST ANDREI SHLEIFER AN ADVISER TO RUSSIA'S PRIVATIZATION AGENCY WARNED THERE ARE ONLY TWO PLACES LEFT IN THE RUSSIAN GOVERNMENT WHERE ANYTHING HAPPENS THE MINISTRY OF FINANCE AND THE PRIVATIZATION AGENCY 9308120107 930812 WHO'S NEWS IBM'S WHEELER RETIRES AS ITS TOP EXECUTIVE OF SOFTWARE DIVISION ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP SAID ITS TOP SOFTWARE EXECUTIVE EARL WHEELER WILL RETIRE THIS MONTH MR WHEELER 59 YEARS OLD HAD LONG BEEN EXPECTED TO STEP DOWN THIS YEAR TO SUCCEED HIM IBM NAMED STEVEN A MILLS AS HEAD OF THE COMPUTER GIANT'S SOFTWARE DIVISION MR MILLS 42 IS CURRENTLY THE GENERAL MANAGER OF IBM'S BIG SOFTWARE LABORATORY IN SANTA TERESA CALIF IBM'S SOFTWARE DIVISION KNOWN AS PROGRAMMING SYSTEMS HAS ABOUT 7000 EMPLOYEES AND WILL RING UP SOME 3 BILLION IN REVENUE THIS YEAR IT MAKES PACKAGES SUCH AS THE WIDELY USED DB2 DATABASE BUT DOESN'T HANDLE IBM'S OPERATING SYSTEM SOFTWARE SUCH AS OS/2 MR WHEELER CALLED THE DIVISION VERY PROFITABLE BUT WOULDN'T ELABORATE IBM CHAIRMAN LOUIS V GERSTNER JR SAID THE DIVISION IS PUSHING TO ENSURE THAT COMPUTER SYSTEMS FROM MAINFRAMES TO PERSONAL COMPUTERS WORK TOGETHER SMOOTHLY HE ADDED THIS IS A LARGE AND COMPLEX TASK AND OUR WORK IS FAR FROM COMPLETED MR WHEELER JOINED IBM IN 1955 AS A JUNIOR ENGINEER IN ENDICOTT NY HE CLIMBED QUICKLY UP IBM'S EXECUTIVE LADDER EVENTUALLY BECOMING HEAD OF THE SOFTWARE DIVISION IN 1988 AND A SENIOR VICE PRESIDENT IN 1990 IN AN INTERVIEW HE SAID HE PLANS TO RELAX WITH HIS FAMILY AND DOESN'T INTEND TO MOVE ON TO ANOTHER COMPANY 9308120106 930812 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 2 15/16 HIGH 2 7/8 LOW 2 7/8 NEAR CLOSING BID 2 15/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 59 DAYS 312 60 TO 89 DAYS 314 90 TO 119 DAYS 316 120 TO 161 DAYS 328 162 TO 179 DAYS 330 180 TO 239 DAYS 337 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 318 60 DAYS 321 90 DAYS CERTIFICATES OF DEPOSIT 260 ONE MONTH 265 TWO MONTHS 269 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 306 THREE MONTHS 330 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 304 60 DAYS 306 90 DAYS 307 120 DAYS 319 150 DAYS 320 180 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 697 60 DAYS 704 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 691 60 DAYS 701 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 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 9308120105 930812 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FORD MOTOR CO A SHELF OFFERING OF UP TO 570 MILLION OF SERIES 1993A PASSTHROUGH CERTIFICATES VIA GOLDMAN SACHS & CO AND SALOMON BROTHERS INC MICROAGE INC AN OFFERING OF 19 MILLION COMMON SHARES VIA ROBINSONHUMPHREY CO DILLON READ & CO AND MONTGOMERY SECURITIES SOUTHWESTERN BELL TELEPHONE CO A UNIT OF SOUTHWESTERN BELL CORP A SHELF OFFERING OF UP TO 2 BILLION OF DEBT SECURITIES 9308120104 930812 LEISURE & ARTS HEPBURN HOLLYWOOD AND ELVIS REMEMBERED BY DOROTHY RABINOWITZ THIS PREMIERE MARATHON OF TNT'S SERIES CONCERNS MOVIES A LOT LESS BAD THAN THE ACCOMPANYING COMMENTARY THE LATTER DISPENSED BY ED MARGULIES EXECUTIVE EDITOR OF MOVIELINE MAGAZINE AND CONTRIBUTING EDITOR STEPHEN REBELLO IS MOSTLY SUPERCILIOUS OR JUST PLAIN DOPEY THIS HOWEVER SHOULDN'T KEEP ANYONE FROM THE FUN OF WATCHING THE FILMS BEGINNING WITH BUTTERFIELD 8 ZAP PAST THE COMMENTARY REMOTES WERE MADE FOR NIGHTS LIKE THIS THIS ADORING BIOGRAPHY NARRATED BY MS HEPBURN'S FRIEND ROGER MOORE CARRIES A TRUE VISCERAL PUNCH THIS IS OF COURSE LARGELY DUE TO ITS ENDLESSLY CHARMING SUBJECT AND THE PARADE OF CLIPS FROM SUCH MOVIES AS LOVE IN THE AFTERNOON ROMAN HOLIDAY BREAKFAST AT TIFFANY'S CHARADE AND MY FAIR LADY BUT SOME OF IT IS ALSO DUE TO THE EMOTION CLEAR IN EVERY SYLLABLE OF TALK ABOUT MS HEPBURN FLOWING FROM FELLOW STARS EXHUSBANDS ASSOCIATES AND DIRECTORS THE COMMENTS FROM GREGORY PECK MEL FERRER BLAKE EDWARDS GEORGE PEPPARD DIRECTOR BILLY WILDER AND NUMEROUS COLLEAGUES ARE INDEED ALL INFUSED WITH A SENSE OF WONDER THAT A CREATURE SO DELECTABLE PERSONALLY AS WELL AS PROFESSIONALLY SHOULD HAVE EXISTED AMONG THEM AND NOT ONLY EXISTED BUT THRIVED IN THE COURSE OF A LONG HOLLYWOOD CAREER MR WILDER WHO MAKES THE MOST TELLING OBSERVATIONS ABOUT THE HEPBURN PERSONA ALSO NOTES HOW MUCH THE CAMERA LOVED HER AND THAT THERE WAS NO WAY TO PHOTOGRAPH HER BADLY GREGORY PECK TELLS OF HIS ASTONISHMENT AT THE YOUNG ACTRESS'S PERFORMANCE IN ROMAN HOLIDAY AND OF CALLING HIS AGENT TO TELL HIM TO GIVE HER TOP BILLING FOR THIS FILM FOR WHICH SHE WAS SURE TO GET AN OSCAR WHICH SHE DID GEORGE PEPPARD TALKS ABOUT THE MAKING OF BREAKFAST AT TIFFANY'S THE BIOGRAPHY ALSO COVERS THE LATE ACTRESS'S CHILDHOOD IN NAZIOCCUPIED HOLLAND AND HER FINAL YEARS WORKING FOR UNICEF BUT ITS HEART IS CLEARLY HER MOVIES CARY GRANT WORRIED IN CHARADE THAT HE WAS TOO OLD TO PLAY OPPOSITE A YOUNG ACTRESS AS THE CLIPS ATTEST THERE WAS LITTLE CAUSE FOR WORRY MS HEPBURN HIS LEADING LADY HAD A WAY OF TRANSMITTING EMOTION SO BELIEVABLY AUDIENCES HAD NO TROUBLE SEEING THE MALE LEAD AS SHE DID IE THROUGH HER LOVESMITTEN EYES HAVING CARY GRANT AS THAT OLDER MALE LEAD OF COURSE HELPED BILLY WILDER HAS THE LAST MOST ACUTE WORD ON MS HEPBURN WHEN HE REMARKS AT THE END THAT SHE HAD SOMETHING THAT CANNOT BE LEARNED THAT SOMETHING WAS ELEGANCE NOW LARGELY DISAPPEARED BOTH FROM THE WORLD MR WILDER SUGGESTS AS WELL AS FROM THE MOVIES THIS LOOK AT HOLLYWOOD'S IMAGE OF ITSELF PRODUCED BY RICHARD SCHICKEL WITH RON HOWARD AS HOST CAN BE SHARP AND OFTEN IS IT IS ALSO ENCUMBERED BY A TONE AND POSTURE THAT IS TOO CLEVER BY HALF WITHOUT WHICH THIS WOULD HAVE BEEN MORE FUN THAN IT IS THIS CHAPTER OF BIOGRAPHY TRACES THE LIFE AND WORKS OF ELVIS FROM HIS BEGINNINGS IN THAT LITTLE HOUSE IN TUPELO THE SACRED BIRTHPLACE A DRAMATIC PACKAGE REPLETE WITH DATA THE FILM IS AT ITS BEST CHRONICLING THE PRESLEY FAMILY AND CAREER HISTORY BUT ON SHAKIER GROUNDS WHEN BIOGRAPHER ELAINE DUNDY GOES SOARING OFF INTO THE PSYCHOBIOGRAPHICAL BLUE YONDER OTHERWISE VIGNETTES OF THE YOUNG ELVIS TRYING TO WORK UP COURAGE TO CUT A RECORD AND THE FOCUS ON THE SHOCKING FIRST IMPACT OF ROCKANDROLL MAKE FOR A COMPELLING HOUR BONNIE HUNT PORTRAYS AN ASPIRING ACTRESS JUST SETTLING INTO A CHICAGO APARTMENT LOCATED DIRECTLY ACROSS FROM WRIGLEY FIELD IT'S TOO EARLY TO SAY WHAT THAT FACT MEANS IN TERMS OF THE SCRIPT BUT IT'S NOT TO EARLY TO SEE THAT THIS IS A SITCOM WITH POSSIBILITIES MS HUNT FOR ONE THING MANAGES TO GET A FAIR AMOUNT OF COMEDY OUT OF THE TIRED ROLE OF A WOMAN LEFT AT THE ALTAR ONE OR TWO OF THE CHARACTERS ACTUALLY HAVE SOME DIMENSION PARTICULARLY THE UPSTAIRS NICE GUY PLAYED BY TOM VIRTUE MAY THIS CONTINUE 9308120103 930812 DEAR LAURA TYSON DURING THE DEBATE ON THE FEDERAL BUDGET THIS PAGE PUBLISHED A SERIES OF ARTICLES AND EDITORIALS ARGUING THAT NO MATTER HOW HIGH INCOME TAX RATES RISE REVENUES STAY AT ABOUT 19 OF GNP LAST WEEK LAURA TYSON CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS TOOK ISSUE WITH THAT VIEW IN AN ARTICLE THAT ARGUED THAT THE CLINTON ADMINISTRATION'S HIGHER TAX RATES WILL BOOST TAX REVENUE HIGHER TAXES DO SO RAISE MONEY AUG 3 JUDGING FROM THE STACKS OF OUTRAGED FAXES AND LETTERS WE'VE RECEIVED MANY JOURNAL READERS DISAGREE WITH MS TYSON OF THE 100 OR SO RESPONSES ONLY FOUR SUPPORTED HER POSITION WE ARE PUBLISHING A SAMPLING MEASURING REVENUES AS A PERCENT OF GDP IS MISLEADING TO THE POINT OF BEING UTTERLY USELESS WHY BECAUSE THIS RATIO OF TAXES TO GDP CAN BE AFFECTED BY CHANGES IN THE DENOMINATOR GDP AS WELL AS BY CHANGES IN THE NUMERATOR TAX RECEIPTS IF REVENUES ARE FLAT IN REAL TERMS THEY CAN NONETHELESS APPEAR TO SOAR AS A PERCENT OF GDP IF REAL GDP IS FALLING THIS IS ROUGHLY WHAT HAPPENED IN 197982 ASKING THE TAX COLLECTORS TO SQUEEZE A SLIGHTLY LARGER SHARE OUT OF A SHRINKING ECONOMY IS NO LASTING CURE FOR ANYBODY'S BUDGET ALTERNATIVELY REVENUES MAY BE GROWING QUITE RAPIDLY IN REAL TERMS YET NONETHELESS NOT RISE AS A SHARE OF GDP IF REAL GDP IS GROWING JUST AS FAST THIS IS WHAT HAPPENED FROM 1983 TO 1989 FROM 1975 TO 1978 AND FROM 1962 TO 1968 MY GRAPH SHOWS WHAT REALLY HAPPENED TO REVENUES FROM THE INDIVIDUAL INCOME TAX ALONE WHEN PROPERLY MEASURED IN REAL TERMS RATHER THAN AS A PERCENTAGE OF GDP THE INESCAPABLE CONCLUSION IS PRECISELY THE OPPOSITE OF MS TYSON'S THERE WERE LARGE SUSTAINED INCREASES IN REAL TAX REVENUES FOR SEVERAL YEARS AFTER THE TAX CUTS OF 1964 AND 1975 AND PARTICULARLY FROM THE MARGINAL REDUCTIONS THAT TOOK EFFECT IN 198384 AND AGAIN IN 1986 REVENUES FROM OTHER TAXES ALSO SOARED AT THESE TIMES IN REAL TERMS BECAUSE TAX INCENTIVES THAT ENCOURAGED INDIVIDUALS TO PROSPER ALSO BROUGHT LARGE INCREASES IN TAXABLE PROFIT PAYROLLS CAPITAL GAINS AND SALES MS TYSON PROVIDES A MARVELOUS EXAMPLE SHE NOTES THAT TAX RECEIPTS AS A SHARE OF GDP FELL BY ABOUT 17 PERCENTAGE POINTS BETWEEN 1981 AND 1983 GIVEN HER MYOPIC FOCUS ON PERIODS OF ONE OR TWO YEARS AND HER PROPENSITY TO DATE TAX CUTS FROM THE YEAR OF ENACTMENT RATHER THAN THE YEAR THEY TOOK EFFECT MS TYSON SEEMS TO THINK THE 198183 FIGURES DEMONSTRATE SOMETHING THEY DO THEY SHOW THAT RECORD HIGH TAX RATES IN 1981 DUE TO BRACKET CREEP CRUSHED THE ECONOMY THAT IS WHY A TAXCUTTING BILL PASSED IN LATE 1981 THAT LAW DID NOT SIGNIFICANTLY REDUCE INDIVIDUAL TAX RATES UNTIL FISCAL 198384 FROM 1983 TO 1990 INDIVIDUAL TAX RECEIPTS ROSE FROM 318 BILLION TO 420 BILLION WHEN MEASURED IN 1987 DOLLARS THAT IS INDIVIDUAL TAX RECEIPTS ROSE BY NEARLY ONETHIRD IN REAL TERMS AFTER MARGINAL TAX RATES CAME WAY DOWN CARELESSLY DISCARDING THIS AWESOME REVENUE WINDFALL FROM REAGANOMICS CONGRESS PASSED THE INFAMOUS TAX INCREASE OF OCTOBER 1990 A BILL AIMED AT SOAKING THE RICH WITH HIGHER INCOME AND LUXURY TAXES REAL REVENUES THEN FELL BY 4 FROM 1990 TO 1992 WITH THE LOSSES CONCENTRATED AMONG HIGH INCOMES MS TYSON ARGUES THAT TAX EVASION WILL BE NO PROBLEM BECAUSE MOST TAX SHELTERS HAVE BEEN CLOSED BUT EVERY MAGAZINE AND NEWSLETTER THAT HANDS OUT ADVICE IS CURRENTLY SHOWING PLENTY OF WAYS TO AVOID REPORTING ANY TAXABLE INCOME ABOVE THE THRESHOLDS AT WHICH THE NEW TAX RATES APPLY I HAVE BEEN THINKING OF STARTING A 139 CLUB CONSISTING OF PEOPLE WHO USED TO REPORT INCOMES OF MORE THAN 140000 BUT REFUSE TO DO SO LONG AS PUNITIVE TAX RATES APPLY TO INCOMES ABOVE THAT LEVEL THE INCONVENIENT FACT REMAINS THAT REAL RECEIPTS FROM ALL TAXES HAVE INCREASED FOR A PROLONGED PERIOD AFTER EVERY CUT IN MARGINAL TAX RATES AND FALLEN WITHIN A YEAR OR TWO OF EVERY TAX INCREASE IT IS MARGINAL TAX RATES NOT AVERAGE TAX/GDP RATIOS THAT MOST SEVERELY DISTORT AND DESTROY THE INCENTIVES TO PRODUCE IT WILL NOT BE LONG BEFORE WE ARE READING ABOUT SURPRISINGLY DISAPPOINTING REVENUES AS THE DATA ROLL IN WE WILL DISCOVER THAT THE SHARE OF TAXES PAID BY THE TOP 1 HAS FALLEN THUS SHIFTING THE TAX BURDEN BACK TO THOSE WITH MORE MODEST INCOMES THREE OF THE FOUR EPISODES CITED BY LAURA TYSON REFUTE HER CLAIM THAT PERSONAL INCOME TAX RECEIPTS BEHAVED AS EXPECTED THEY INCREASED AS A SHARE OF GDP WHEN THE TOP RATE INCREASED I DON'T KNOW WHO DREW THE GRAPHIC BUT ALL THE ARROWS ARE OFF BY A YEAR MAKING THIS HARDER TO NOTICE WHAT IS MISSING FROM MS TYSON'S ANALYSIS IS THE NUMERATOR PERSONAL TAX RECEIPTS I HAVE MODELED PERSONAL TAX RECEIPTS AND THEY ARE STRONGLY A FUNCTION OF A PERSONAL INCOME AND B THE CHANGE IN INTEREST RATES THERE IS NO RELATIONSHIP WHATSOEVER BETWEEN MARGINAL TAX RATES AND PERSONAL TAX RECEIPTS IF YOU WISH TO INCREASE THE AMOUNT OF PERSONAL TAX RECEIPTS YOU MUST RAISE PERSONAL INCOME IN THE AGGREGATE AND RAISE INTEREST RATES THE REASON FOR THE FORMER IS OBVIOUS IF PERSONAL INCOME GOES UP THERE IS MORE TO PAY THE GOVERNMENT THE LATTER IS LESS INTUITIVE BUT JUST AS IMPORTANT WHAT IT SAYS IS THAT TO THE EXTENT THAT INDIVIDUALS DEMAND FIXEDINCOME INVESTMENTS THEIR TAXES ARE HELD HOSTAGE TO INTEREST RATES THE IMPACT OF THIS IS THAT IN TIMES OF RISING RATES THE GOVERNMENT IS THE LUCKY RECIPIENT OF INCREASED REVENUE OWING TO THE INCREASED INCOME FROM THESE FIXEDINCOME INVESTMENTS LIKEWISE IN TIMES OF DECLINING RATES INCOME FALLS AND THIS HAS AN EFFECT UPON RECEIPTS WHICH ALSO DECLINE IF IT REALLY IS IN THE BEST INTEREST OF THE COUNTRY FOR PERSONAL TAX RECEIPTS TO INCREASE THEN THE PRESCRIPTION IS A CLIMATE THAT FOSTERS HIGHER AGGREGATE PERSONAL INCOME AND HIGHER NOT LOWER INTEREST RATES LAURA TYSON ARGUES THAT HIGHER MARGINAL TAX RATES RAISE TAX REVENUES AS A PERCENTAGE OF GDP BUT HER SOLE EXAMPLE IS THE VIETNAM WAR SURTAX WHICH WAS APPLIED RETROACTIVELY TO INCOME ALREADY EARNED RETROACTIVE TAX INCREASES SUCCEED IN RAISING REVENUES BECAUSE THE RULES OF THE GAME ARE CHANGED AFTER THE GAME IS PLAYED MS TYSON'S ANALYSIS SUFFERS ALSO FROM HER MISTAKEN BELIEF THAT THERE IS NO REASON TO EXPECT A RELATIONSHIP BETWEEN TOP MARGINAL INCOME TAX RATES AND SOCIAL SECURITY TAX COLLECTIONS THE RELATIONSHIP BETWEEN THE TWO IS OBVIOUS BY STIMULATING ENTERPRISE LOWER TAX RATES GENERATE LARGER PAYROLLS AND HIGHER SOCIAL SECURITY REVENUES HIGHER TAX RATES GENERATE SMALLER PAYROLLS AND LOWER SOCIAL SECURITY REVENUES MS TYSON REVEALS HERSELF TO BE UNINFORMED ABOUT THE REAGAN POLICY THAT SHE CRITICIZES AS MARTIN ANDERSON MYSELF AND OTHERS HAVE OFTEN AND AMPLY DOCUMENTED THE REAGAN ADMINISTRATION DID NOT CLAIM THAT THE 1981 TAX REDUCTIONS WOULD INCREASE REVENUES AS A PERCENTAGE OF GDP AS THE PUBLIC RECORD CLEARLY SHOWS THE ADMINISTRATION ACCURATELY FORECAST THAT TAX REVENUES AS A PERCENTAGE OF GNP WOULD FALL AM I GLAD I WAS NOT ONE OF PROF TYSON'S STUDENTS AS I AM SURE I WOULD HAVE FLUNKED HER COURSE SINCE THE PURPOSE OF INCREASING TAX RATES IS TO GENERATE FUNDS TO REDUCE THE DEFICIT AND REVENUE NOT RATES IS WHAT ACCOMPLISHES THAT GOAL I WONDERED WHAT HAPPENED IN THE ECONOMY DURING THE PERIODS THAT MS TYSON HIGHLIGHTS IN HER CHART TO FIND THE ANSWER ONE MUST LOOK AT AGGREGATE ECONOMIC FIGURES RATHER THAN SIMPLE PERCENTAGES AFTER ALL PERCENTAGES ARE NICE BUT REAL DOLLARS ARE WHAT PAY THE BILLS I FOUND THE FOLLOWING OF INTEREST FOLLOWING THE 1969 RETROACTIVE SURTAX GNP DECLINED IN REAL TERMS IN 1970 THE 197981 PERIOD OF HIGH TAX RECEIPT PERCENTAGES WAS CHARACTERIZED BY DOUBLEDIGIT INFLATION AND STATIC OR NEGATIVE REAL GNP GROWTH EACH PERIOD THAT IS DEPICTED IN HER CHART AS A TAX REDUCTION OR TAX CUT WAS FOLLOWED BY A PROLONGED PERIOD OF ECONOMIC EXPANSION IN TERMS OF REAL GNP GROWTH IF THIS ADMINISTRATION IS SERIOUS ABOUT INCREASING TAX REVENUES IT SHOULD CONCENTRATE ON ECONOMIC EXPANSION RATHER THAN ON TAX RATES HIGHER TAX RATES DEPRESS THE ECONOMY AS HISTORY SHOWS I AM CURIOUS ABOUT MS TYSON'S ASSERTION THAT IT IS NOT VERY LIKELY THAT THE WEALTHY WILL RESPOND TO HIGHER TAX RATES BY NOTICEABLE REDUCTION IN THEIR LABOR SUPPLY WHILE THE ADDITIONAL TAXES MAY NOT IMPACT THE SPENDING HABITS OF THOSE AT THE VERY TOP OF THE INCOME CHAIN THERE IS NO QUESTION THAT DISCRETIONARY INCOME FOR MANY IS GOING TO BE SMALLER I KEEP HEARING FROM FRIENDS THAT THEY WILL BE REEVALUATING EVERY EXPENSE INCLUDING DOMESTIC HELP OTHERS TALK OF BRINGING FAMILY TO HELP AT WORK AFTER HOURS DURING PEAK PERIODS INSTEAD OF HIRING TEMPORARIES BECAUSE SALARIES ARE JUST ONE PART OF THE COST OF AN EMPLOYEE THE COUNTRY'S MANY SUBCHAPTER S CORPORATIONS WILL BECOME INCREASINGLY WARY OF HIRING MS TYSON IS CORRECT THAT THE WEALTHY'S LABOR SUPPLY WILL NOT GO DOWN BUT THEIR LABOR USAGE CERTAINLY WILL MS TYSON SHOULD WRITE A BOOK ENTITLED HIGHER TAXES ARE GOOD FOR YOU WHETHER YOU KNOW IT OR NOT NO DOUBT IT'S HARD TO ARGUE WITH THE NATION'S TOP ECONOMIST BUT LAURA TYSON LEAVES SOME GAPING HOLES IN HER REFUTATION OF THE LAFFER CURVE WHAT MS TYSON CONVENIENTLY FAILS TO MENTION IS THAT 1 INCOMETAX RECEIPTS AS HER OWN CHART SHOWS WERE ALREADY FALLING BEFORE THE ECONOMIC RECOVERY TAX ACT WAS ENACTED 2 ERTA WAS SANDWICHED BETWEEN BACKTOBACK RECESSIONS THAT LASTED A COMBINED SEVEN QUARTERS AND SEVERELY CONTRACTED INCOMES AND 3 TAX REVENUES AS A SHARE OF GDP ROSE ON A HEALTHY UPWARD TRAJECTORY FROM 198489 AS THE SUPPLYSIDE EFFECTS OF ERTA KICKED IN I HOPE YOU WILL HAVE THE COURAGE TO ADMIT THAT MS TYSON'S INTELLECTUALLY HONEST ANALYSIS IS FAR MORE APPEALING THAN YOUR EMOTIONALLY POPULAR DIATRIBES AGAINST TAXES POLITICS AND SUPPLY SIDE ASIDE LET THE TRUTH PREVAIL ACCORDING TO LAURA TYSON FROM 1955 TO 1992 PERSONAL INCOME TAX RECEIPTS AS A SHARE OF GDP INCREASED WHENEVER THE TOP MARGINAL TAX RATE INCREASED AND DECREASED WHENEVER THE TOP MARGINAL TAX RATE FELL THE GRAPH INCLUDED IN THE ARTICLE TO SUPPORT HER ARGUMENT HOWEVER CLEARLY SHOWS JUST THE OPPOSITE AFTER THE 1964 TAX CUT UNTIL THE 1969 VIETNAM SURTAX PERSONAL INCOME TAX RECEIPTS AS A PERCENTAGE OF GDP STEADILY INCREASED FROM ABOUT 7 TO ABOUT 95 FOR THE TWO YEARS FOLLOWING THE 1969 TAX INCREASE THE GRAPH SHOWS RECEIPTS FALLING TO ABOUT 775 AFTER THE TAX REDUCTION ACT OF 1975 UNTIL 1981 TAX RECEIPTS AGAIN INCREASED STEADILY AS A PERCENTAGE OF GDP UNTIL THEY WERE BACK UP TO ABOUT 95 OF GDP FOR SOME REASON MS TYSON ALSO FAILED TO DISCUSS THE DROP IN INCOME TAX RECEIPTS THAT FOLLOWED THE 1990 TAX INCREASES LAURA TYSON'S CHART DISPROVES HER OWN THESIS SHE CITES THREE SPECIFIC REDUCTIONS IN TAX RATES WITHIN A YEAR AFTER EACH REDUCTION TOOK EFFECT THE EXISTING DOWNWARD TREND IN TAX REVENUE AS A PERCENTAGE OF GDP REVERSED DIRECTIONS CONVERSELY ONE OF THE IMMEDIATE EFFECTS OF LBJ'S VIETNAM WAR SURTAX WAS A SIGNIFICANT DECREASE IN THIS RATIO THE EXACT OPPOSITE OF MS TYSON'S ARGUMENT THAT HIGHER RATES DIVERT A LARGER PERCENTAGE OF GDP FROM INDIVIDUALS TO GOVERNMENT IT GAVE ME CHILLS TO READ THE CHAIR OF THE COUNCIL OF ECONOMIC ADVISERS IMPLYING THAT THE BRACKET CREEP OF THE 1970S WAS A GOOD THING THAT INCREASED REVENUE IF MS TYSON WOULD LEAVE HER QUESTIONABLE ECONOMIC THEORIES IN THE CLASSROOM SHE MIGHT REALIZE THAT INDIVIDUAL SAVINGS PROMOTE CAPITAL FORMATION CREATING JOBS AND GROWING THE ECONOMY INDIVIDUALS NEED THE FREEDOM TO DIRECT THAT CAPITAL TO CREATE JOBS AND WEALTH IT SEEMS TO ME THAT OUR GOVERNMENT POLICY SHOULD PROMOTE THIS ACTIVITY NOT PENALIZE IT ALTHOUGH I AM IN THE MIDDLE CLASS AND WILL NOT BEAR THE BRUNT OF THIS TAX BURDEN I RECOGNIZE WE ARE ALL CITIZENS AND NOT FATTED CALVES TO BE OFFERED TO THE GREAT TAXANDSPEND GOD LAURA TYSON'S PIECE ENDS WITH THE PROMISE OF INCREASED NATIONAL SAVINGS AND INVESTMENTS LET ME GET THIS STRAIGHT IF I HAVE LESS MONEY TO SAVE AND INVEST BECAUSE THE GOVERNMENT IS TAKING MORE OF WHAT I EARN THEN I'LL SAVE AND INVEST MORE LAURA TYSON CORRECTLY CRITICIZES THE ARGUMENT THAT THE TAX SHARE OF GDP REMAINS CONSTANT REGARDLESS OF THE CHANGE IN TAX RATES SHE IS ALSO AT LEAST PARTIALLY CORRECT IN EXCLUDING SOCIAL SECURITY REVENUES FROM THE ANALYSIS OF A SUPPLYSIDE BOOST IN REVENUES NOW SHE SHOULD TAKE THE NEXT LOGICAL STEP SHE SHOULD RECOGNIZE THAT EVERY TAX CUT PICTURED ON HER CHART WAS ASSOCIATED WITH A BOOST IN PRODUCTIVITY AND REAL INCOMES IN CONTRAST THE TAX INCREASES IN THE LATE '60S LATE '70S AND 1990 WERE ALL FOLLOWED BY RECESSIONS AND ECONOMIC MALAISE IT'S AMAZING WHAT YOU LEARN WHEN YOU START TO LOOK AT THE DATA PROF TYSON MAY BE RIGHT RAISING MARGINAL TAX RATES MAY INCREASE THE GOVERNMENT'S PERSONAL TAX RECEIPTS AS A PERCENTAGE OF GDP BUT IT IS LIABLE TO DO SO AT THE EXPENSE OF SLOWER ECONOMIC GROWTH AND RISING INTEREST RATES JUST AS IT DID IN 1969 IF THIS IS THE ADMINISTRATION'S IDEA OF SUCCESS I SHUDDER TO THINK OF HOW IT DEFINES FAILURE UNTIL NOW I BOUGHT THE WALL STREET JOURNAL ARGUMENT THAT HIGHER TAX RATES WOULDN'T REALLY INCREASE THE FEDERAL TAX TAKE CONSEQUENTLY I WASN'T TOO WORRIED THAT MR CLINTON'S PLAN WOULD LEAD TO A MUCH LARGER GOVERNMENT NOW COUNCIL OF ECONOMIC ADVISERS CHAIR LAURA TYSON HAS CONVINCED ME THAT HIGHER TAXES DO SO RAISE MONEY MS TYSON'S LUCID COLUMN MAKES IT CLEAR THAT THE PRESIDENT'S PLAN IS EVEN WORSE THAN THE JOURNAL THOUGHT MS TYSON DID A COMMENDABLE JOB OF CORRECTING THE PERCEPTION THAT THERE IS LITTLE EFFECT ON TAX RECEIPTS AS A PERCENTAGE OF GDP BY TAKING A CLOSER LOOK THROUGH CHANGING THE SCALE I WONDER HOW A GRAPH OF GOVERNMENT EXPENDITURES WOULD LOOK USING THE SAME SCALE MS TYSON MAKES IT CLEAR IN CLOSING HER PIECE THAT EVEN THOUGH RICH PEOPLE WILL PAY MORE TAX UNDER THE CLINTON SCHEME AS SHE HAS ABLY DEMONSTRATED THEY CAN EXPECT TO BENEFIT FROM AN INCREASE IN THEIR STANDARD OF LIVING THAT WILL APPARENTLY OUTSTRIP THE EXTRA TAX BURDEN DON'T WORRY MR PRESIDENT I WON'T TELL MIDDLE CLASS AMERICA THAT THE RICH ARE REALLY GETTING A FREE RIDE BOTH THE WALL STREET JOURNAL AND LAURA TYSON HAVE MISSED THE POINT AS THE ADMINISTRATION CONTINUALLY REMINDS US THE CURRENT INCOME TAX CHANGES ONLY INCREASE MARGINAL TAX RATES FOR TOPINCOME EARNERS THE RELEVANT QUESTION IS WHETHER THESE TAX RATE INCREASES ON TOP EARNERS ARE LIKELY TO INCREASE THEIR REVENUE CONTRIBUTION NOT HOW HISTORIC CHANGES IN THE TAX CODE HAVE INFLUENCED THE OVERALL AVERAGE TAX RATE SOME INTERESTING DATA ARE READILY AVAILABLE FROM THE IRS'S STATISTICS OF INCOME IN 1980 118 OF ALL INCOME TAX FILERS HAD ADJUSTED GROSS INCOMES ABOVE 75000 THOSE TAXPAYERS PAID 5142 BILLION ON INCOME OF 15039 BILLION IMPLYING AN AVERAGE TAX RATE OF 342 IN 1986 THE 1981 REAGAN TAX CUTS WERE IN PLACE THE 1986 TAX REFORMS HAD NOT YET PASSED AND THE UNEMPLOYMENT RATE WAS ALMOST IDENTICAL TO ITS 1980 LEVEL ADJUSTING ALL 1986 DOLLAR FIGURES INTO 1980 DOLLARS IN 1986 144 OF ALL INCOME TAX FILERS HAD ADJUSTED GROSS INCOME ABOVE 75000 THOSE TAXPAYERS PAID 8003 BILLION IN TAXES ON INCOME OF 25264 BILLION IMPLYING AN AVERAGE TAX RATE OF 317 OF INCOME EVEN THOUGH THE TAX RATES THE RICH WERE SUBJECT TO DECLINED UNDER THE REAGAN TAX REFORMS THEIR REAL REVENUE CONTRIBUTION ROSE THIS IS TRUE FOR A SIMPLE REASON THE RICH EARNED MORE AND THERE WERE MORE OF THEM THE COROLLARY IS THAT THE CLINTON TAX HIKES MAY ARGUABLY DECREASE THE REVENUE CONTRIBUTIONS OF THE RICH BECAUSE FEWER HIGH INCOME EARNERS WILL HAVE FEWER DOLLARS SUBJECT TO TAXATION MS TYSON'S MOST USEFUL INSIGHT IS THAT TO CAPTURE THE EFFECTS OF CHANGES IN THE STRUCTURE OF THE INCOME TAX ON FEDERAL RECEIPTS IT IS NECESSARY TO EXAMINE TAX RATES BELOW THE VERY TOP I WOULD PUT IT MORE BLUNTLY TO CAPTURE SIGNIFICANT REVENUE FROM HIGHER INCOME TAX RATES IT IS NECESSARY TO RAISE TAX RATES AT INCOME LEVELS FAR BELOW THE VERY TOP MS TYSON ASSERTS THAT THERE HAS BEEN A STRONG CORRELATION BETWEEN THE MARGINAL TAX RATE OF A COUPLE THAT EARNS TWICE THE MEDIAN INCOME AND PERSONAL INCOME TAX REVENUES AS A SHARE OF GDP THE DEMOCRATIC BUDGET PACKAGE HOWEVER DOES NOT RAISE MARGINAL TAX RATES AT ALL ON COUPLES EARNING TWICE THE MEDIAN INCOME THEREFORE MS TYSON FAILS TO REFUTE THE JOURNAL'S ARGUMENT THAT THE PACKAGE'S INCOME TAX RATE HIKES WHICH ARE CONCENTRATED SOLELY AT THE TOP MAY AS IN 1990 RAISE NO REVENUE FOR DEFICIT REDUCTION THE CONCEPTUAL SNAKE OIL THIS ADMINISTRATION IS SELLING IS THAT THE MIDDLE CLASS NEED NOT PAY ANY MORE TAXES AND CAN SACRIFICE A BARE MINIMUM OF ENTITLEMENTS YET WE CAN STILL HAVE MUCH LOWER DEFICITS THE SAD TRUTH IS THAT DEFICITS CANNOT BE BROUGHT UNDER CONTROL THROUGH HIGHER REVENUES WITHOUT HUGE INCREASES IN MIDDLE CLASS TAXES 9308120102 930812 POLITICS & POLICY CLINTON UNVEILS ANTICRIME BILL CALLING FOR TIGHTER GUN CONTROLS MORE POLICE BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON UNVEILED AN ANTICRIME BILL THAT WOULD STIFFEN GUNCONTROL LAWS AND PUT 50000 MORE POLICE ON THE STREET A DOWN PAYMENT ON HIS CAMPAIGN PLEDGE TO ADD 100000 POLICE OFFICERS IN THE MEANTIME THE PRESIDENT SIGNED AN EXECUTIVE ORDER SUSPENDING THE IMPORTATION OF ASSAULTSTYLE HANDGUNS HE ALSO ORDERED A GOVERNMENT REVIEW OF THE REGULATIONS CONCERNING GUN SALES UNIFORMED POLICE OFFICERS STOOD BEHIND MR CLINTON AS HE INTRODUCED THE BILL AT THE WHITE HOUSE THE FIRST DUTY OF ANY GOVERNMENT IS TO TRY TO KEEP ITS CITIZENS SAFE HE DECLARED TOO MANY WEAPONS OF WAR ARE MAKING THEIR WAY ONTO THE STREETS MEANWHILE THE ADMINISTRATION IS CONSIDERING MERGING THE FEDERAL BUREAU OF INVESTIGATION AND THE DRUG ENFORCEMENT ADMINISTRATION AS WELL AS MOVING THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS FROM THE TREASURY DEPARTMENT TO THE JUSTICE DEPARTMENT THE FBI DEA AND ATF TRADITIONALLY HAVE BEEN RIVALS AND THE WHITE HOUSE BELIEVES THAT PULLING THEM TOGETHER UNDER CLOSER SUPERVISION OF THE ATTORNEY GENERAL COULD SAVE MONEY AND LIMIT TURF BATTLES VICE PRESIDENT AL GORE'S STAFF HAS BEEN EXAMINING VARIOUS REORGANIZATION PROPOSALS AND THE WHITE HOUSE IS EXPECTED TO MAKE A CHOICE AND ANNOUNCE IT BY EARLY NEXT MONTH SIMILAR EFFORTS IN THE PAST TO STREAMLINE FEDERAL LAW ENFORCEMENT HAVE FAILED WHEN THE AGENCIES AND THEIR FRIENDS IN CONGRESS PUT UP RESISTANCE ANY MAJOR REVAMPING WOULD PROBABLY REQUIRE LEGISLATION AND LAWMAKERS HAVEN'T YET FOCUSED ON THE ISSUE CONGRESSIONAL STAFF MEMBERS SAID WITH YESTERDAY'S ANNOUNCEMENT MR CLINTON IS SHIFTING HIS ATTENTION TO THE NONECONOMIC PORTION OF HIS LEGISLATIVE AGENDA CONSERVATIVE AND MODERATE DEMOCRATS HAVE ARGUED FOR MONTHS THAT HE NEEDS TO SHOW AS HE DID DURING LAST YEAR'S CAMPAIGN THAT HE IS A NEW KIND OF DEMOCRAT THE TOUGHONCRIME RHETORIC WAS A STEP IN THAT DIRECTION ELEMENTS OF THE PACKAGE REINFORCED THE IMAGE FOR INSTANCE THE BILL INCLUDES A KIND OF GI BILL FOR POLICE OFFICERS THAT HAS BEEN CHAMPIONED FOR YEARS BY THE RIGHT WING OF THE DEMOCRATIC PARTY THE HIGHESTPROFILE PART OF THE MEASURE HOWEVER IS THE BRADY BILL NAMED FOR JAMES BRADY THE FORMER WHITE HOUSE PRESS SECRETARY WHO WAS WOUNDED IN THE 1981 ASSASSINATION ATTEMPT ON PRESIDENT REAGAN THAT PROVISION WOULD SET A NATIONAL WAITING PERIOD FOR THE PURCHASE OF HANDGUNS THE BILL ALSO WOULD IMPOSE THE DEATH PENALTY FOR KILLING A FEDERAL LAW ENFORCEMENT OFFICER AND CERTAIN OTHER CRIMES A SIMILAR BILL CAME CLOSE TO PASSAGE LAST YEAR AND PROBABLY HAS A GOOD CHANCE THIS YEAR AFTER CONGRESS RETURNS IN SEPTEMBER SENATE MINORITY LEADER ROBERT DOLE PRAISED MR CLINTON FOR INTRODUCING THE BILL WHILE POINTING OUT THAT THE REPUBLICANS HAD INTRODUCED ONE OF THEIR OWN JUST LAST WEEK LET'S NOT FORGET THE KANSAS REPUBLICAN SAID IF WE PUT MORE POLICE ON THE STREETS MAKING MORE ARRESTS WE WILL NEED ADDITIONAL PRISON SPACE AS WELL 9308120101 930812 CANADIAN PACIFIC LTD TO SELL TO PUBLIC ITS 607 STAKE IN FORESTPRODUCTS UNIT BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL MONTREAL CANADIAN PACIFIC LTD SAID IT WILL SELL TO THE PUBLIC ITS 607 STAKE IN CANADIAN PACIFIC FOREST PRODUCTS LTD FOR 6978 MILLION CANADIAN DOLLARS US5397 MILLION CANADIAN PACIFIC'S SALE OF ITS FORESTPRODUCTS UNIT IS A MAJOR STEP IN THE MONTREAL COMPANY'S EFFORT STARTED IN THE MID1980S TO NARROW ITS SPRAWLING RANGE OF BUSINESSES THE TIMING IS LIKELY TO STRIKE SOME OBSERVERS AS ODD MANY ANALYSTS SAY THE PAPER INDUSTRY IS POISED TO PULL OUT OF ITS PROLONGED SLUMP NEXT YEAR CANADIAN PACIFIC WILL RECEIVE C19 US1469 A SHARE FOR ITS CP FOREST STOCK IN INSTALLMENTS OVER THE NEXT TWO YEARS FAR BELOW THE UNIT'S SHARE PRICE OF ABOUT C40 AT THE END OF 1989 BEFORE A STRING OF LOSSES BUT CANADIAN PACIFIC OFFICIALS SAID THEY CONCLUDED THE UNIT DOESN'T FIT IN WITH THE COMPANY'S OTHER CORE BUSINESSES WHICH INCLUDE RAILWAYS ENERGY REAL ESTATE AND HOTELS AND TELECOMMUNICATIONS CP FOREST IS IN A POSITION TO BENEFIT FROM AN ECONOMIC RECOVERY BUT WE BELIEVE THAT ITS MARKETS WILL REMAIN CYCLICAL SAID WILLIAM STINSON CHAIRMAN AND CHIEF EXECUTIVE OF CANADIAN PACIFIC THE SALE WILL REDUCE EARNINGS VOLATILITY AND ENABLE CANADIAN PACIFIC TO REPAY DEBT AND CONCENTRATE RESOURCES MORE EFFECTIVELY HE SAID CP FOREST OFFICIALS SAID THE SALE ISN'T EXPECTED TO AFFECT THE COMPANY'S OPERATIONS OR MANAGEMENT BUT AT CANADIAN PACIFIC'S REQUEST THE MONTREAL FORESTPRODUCTS COMPANY WILL RENAME ITSELF WITHIN THE NEXT YEAR SAID DAVID TOOLE SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF CP FOREST IN TRADING ON THE TORONTO STOCK EXCHANGE CANADIAN PACIFIC FOREST PRODUCTS CLOSED AT C18875 DOWN C1625 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING CANADIAN PACIFIC LTD CLOSED AT 1650 DOWN 375 CENTS A CANADIAN PACIFIC SPOKESMAN SAID THE COMPANY WILL INCUR A LOSS AS YET UNDISCLOSED ON THE SALE BUT HE SAID THE LOSS WOULD BE PARTLY OFFSET BY OTHER FACTORS INCLUDING ELIMINATION OF CONTINUING LOSSES FROM CP FOREST CANADIAN PACIFIC WHICH POSTED LARGE LOSSES IN THE PAST TWO YEARS STILL EXPECTS A PROFIT IN 1993 HE SAID FREDERICK LARKIN AN ANALYST WITH BUNTING WARBURG INC IN TORONTO BELIEVES THE SALE MAKES SENSE FOR CANADIAN PACIFIC THE DAY OF THE CONGLOMERATE IS OUT OF FASHION AND WHILE CP FOREST MAY BE AN ATTRACTIVE INVESTMENT AT ITS CURRENT PRICE CANADIAN PACIFIC HAS OTHER CAPITALINTENSIVE OPERATIONS TO TEND TO HE SAID MR LARKIN SAID HIS FIRM IS STICKING WITH ITS ESTIMATE THAT CANADIAN PACIFIC WILL EARN 75 CANADIAN CENTS A SHARE THIS YEAR AND C125 A SHARE IN 1994 IN 1992 THE COMPANY REPORTED A LOSS OF C4783 MILLION OR C150 A SHARE MOSTLY FROM ONETIME CHARGES REVENUE WAS C896 BILLION FOR THE FIRST SIX MONTHS OF THIS YEAR CANADIAN PACIFIC POSTED NET INCOME OF C337 MILLION OR 10 CANADIAN CENTS A SHARE CP FOREST REPORTED A LOSS OF C1128 MILLION OR C199 A SHARE FOR THE PERIOD COMPARED WITH A LOSS OF C1306 MILLION OR C259 A SHARE A YEAR EARLIER THE CP FOREST STAKE WILL BE SOLD THROUGH A GROUP OF CANADIAN UNDERWRITERS LED BY NESBITT THOMSON INC SHARES WILL BE OFFERED ON AN INSTALLMENT BASIS WITH C6 OF THE TOTAL PRICE PAYABLE ON CLOSING OF THE OFFERING C650 TO BE PAID IN SEPTEMBER 1994 AND THE FINAL C650 PAYABLE A YEAR LATER THE SHARES MAY NOT BE OFFERED IN THE US SUBJECT TO CERTAIN EXCEPTIONS CLOSING OF THE OFFERING WHICH IS SUBJECT TO CANADIAN GOVERNMENT CLEARANCES IS EXPECTED EARLY NEXT MONTH 9308120100 930812 INTERNATIONAL BAA'S AIRPORT TRAFFIC RISES LONDON BAA PLC SAID PASSENGER TRAFFIC AT ITS SEVEN BRITISH AIRPORTS ROSE 44 IN JULY FROM A YEAR EARLIER TO A RECORD 83 MILLION PASSENGERS LONDON'S HEATHROW THE WORLD'S BUSIEST AIRPORT FOR INTERNATIONAL TRAFFIC HANDLED 47 MILLION PASSENGERS IN JULY UP 54 FROM A YEAR EARLIER LONDON GATWICK'S TRAFFIC ROSE 08 TO 22 MILLION PASSENGERS WHILE BAA'S THIRD LONDONAREA AIRPORT STANSTED SAW A 12 INCREASE TO 302400 PASSENGERS BAA'S THREE SCOTTISH AIRPORTS GLASGOW EDINBURGH AND ABERDEEN TOGETHER HANDLED 11 MILLION PASSENGERS UP 53 SOUTHAMPTON AIRPORT IN THE SOUTH OF ENGLAND SAW TRAFFIC RISE 9 TO 43300 OVERALL LONGHAUL TRAFFIC ROSE 76 CHARTER TRAFFIC ROSE 59 AND DOMESTIC UK TRAFFIC INCREASED 12 BAA SAID 9308120099 930812 TAXABLE MONEY FUND YIELDS LITTLE CHANGED NEW YORK YIELDS ON TAXABLE MONEYMARKET MUTUAL FUNDS WERE LITTLE CHANGED IN THE LATEST WEEK IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS REMAINED AT 268 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER ASSETS OF 607 TAXABLE FUNDS INCREASED BY 416 BILLION TO 47321 BILLION THE NEWSLETTER REPORTED INSTITUTIONAL INVESTORS ADDED 430 BILLION WHILE INDIVIDUAL INVESTORS TOOK OUT 139 MILLION AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 61 DAYS THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS EASED TO 264 FROM 265 IN THE LATEST WEEK THE AVERAGE 30DAY SIMPLE YIELD REMAINED AT 264 WHILE THE AVERAGE 30DAY COMPOUND YIELD ALSO REMAINED UNCHANGED AT 268 YIELDS ON TAXEXEMPT FUNDS FELL IN THE LATEST WEEK THE AVERAGE SEVENDAY COMPOUND YIELD SLIPPED TO 207 FROM 211 THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 32 FOR AN INVESTOR IN THE 36 TAX BRACKET AND TO 34 FOR SOMEONE PAYING 396 IN TAXES ASSETS OF 326 TAXEXEMPT FUNDS ROSE BY 195 BILLION TO 10289 BILLION ACCORDING TO MONEY FUND REPORT THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY SHORTENED BY ONE DAY TO 65 DAYS 9308120098 930812 DISNEY COULD JUMP ON THIS IDEA BY OFFERING A JIMINY CRICKET LINE BY JONATHAN DAHL STAFF REPORTER OF THE WALL STREET JOURNAL IMAGINE A SMOKER LIGHTING UP IN A HOSPITAL HALLWAY OR A PUBLIC BATHROOM AND SUDDENLY HEARING A DISEMBODIED VOICE FROM ABOVE PLEASE EXTINGUISH YOUR SMOKING MATERIAL THIS IS A NONSMOKING AREA THANK YOU IF A CLEVELAND ENTREPRENEUR HAS HIS WAY SCENES LIKE THIS WILL BECOME A REALITY STARTING NEXT MONTH WITH SMOKEBUSTER A TALKING SMOKE DETECTOR MICHAEL KAUFMAN A 35YEAROLD FORMER COMPUTER PROGRAMMER SAYS THE 99 TO 199 DEVICE IS AN IDEAL WAY FOR RESTAURANTS SCHOOLS AND OTHER PLACES TO ENFORCE NONSMOKING RULES TACTFULLY IT'S BETTER THAN A SIGN HE SAYS BUT IT'S NOT THE SMOKING POLICE STILL THE MESSAGE IS UP TO THE ESTABLISHMENT INSTALLING IT IT CAN BE AS POLITE OR OBNOXIOUS AS YOU WANT HE SAYS SO FAR AT LEAST TWO HOTEL CHAINS RENAISSANCE AND STOUFFER HOTELS ARE INTERESTED IN THE SMOKEBUSTER KATHY REDMOND SENIOR VICE PRESIDENT OF MARKETING FOR RENAISSANCE HOTELS & RESORTS WHICH ALSO OPERATES STOUFFER PROPERTIES SAYS BOTH CHAINS MAY TEST THE TALKING DEVICES IN LOBBIES AND OTHER PUBLIC AREAS BUT NOT IN NONSMOKING ROOMS YOU HAVE TO BE A LITTLE CAREFUL WITH THIS SORT OF THING ESPECIALLY WITH THE MESSAGE SHE SAYS YOU DON'T WANT TO OFFEND PEOPLE THESE ARE YOUR GUESTS AND I WANT TO UNDERLINE THE WORD PAYING GUESTS BUT SMOKERS ARE LIKELY TO BE OFFENDED ANYWAY THERE ARE ALREADY ENOUGH HARASSMENTS THAT SMOKERS HAVE TO ENDURE SAYS DAVE BRENTON VICE PRESIDENT OF THE UNITED SMOKERS ASSOCIATION IN FRANKFORT KY IT'S DISAPPOINTING THAT PEOPLE KEEP CAPITALIZING ON SMOKERBASHING MR BRENTON QUESTIONS WHETHER ANY DEVICE CAN RELIABLY DETECT CIGARETTE SMOKE BUT VOICE PRODUCTS INC MR KAUFMAN'S COMPANY SAYS SMOKEBUSTER IS FAR MORE SENSITIVE THAN REGULAR SMOKE ALARMS AND CAN SNIFF OUT JUST A PUFF OR TWO A CONSULTING FIRM IN NEW YORK THAT TESTED A PROTOTYPE SAYS IT WORKED FINE IT DOESN'T TAKE MUCH SMOKE TO SET IT OFF SAYS LARRY CHERVENAK PRESIDENT OF CHERVENAK KEANE & CO THE CONSULTING FIRM MR KAUFMAN GOT THE IDEA FOR SMOKEBUSTER A DECADE AGO WHEN AN EXECUTIVE AT A BANK THAT HAD RECENTLY HIRED HIM WAS SMOKING IN AN ELEVATOR THE WHOLE RIDE UP MR KAUFMAN TRIED TO THINK OF A POLITE WAY TO CLEAR THE AIR IT REALLY BUGGED ME HE RECALLS BUT I WAS JUST OUT OF COLLEGE SO I COULDN'T SAY ANYTHING TO HIM 9308120097 930812 WHO'S NEWS BANNER AEROSPACE TAPS STEINER AS SUCCESSOR TO CHAIRMAN KRASNEY CLEVELAND BANNER AEROSPACE INC NAMED VICE CHAIRMAN JEFFREY J STEINER TO THE POSTS OF CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER AT THIS SUPPLIER OF PRODUCTS TO THE AEROSPACE AND AVIATION INDUSTRIES THE APPOINTMENTS ARE EFFECTIVE SEPT 14 MR STEINER 56 YEARS OLD IS THE CHAIRMAN AND CHIEF OF FAIRCHILD CORP CHANTILLY VA A MAKER OF AEROSPACE FASTENERS AND OTHER INDUSTRIAL PRODUCTS MR STEINER WILL SUCCEED SAMUEL J KRASNEY 68 WHO WILL RETIRE FROM THOSE POSTS FOLLOWING THE COMPANY'S ANNUAL MEETING SEPT 14 MR KRASNEY WHO HAS SERVED IN THE COMPANY'S TOP POSTS SINCE 1990 WHEN BANNER WENT PUBLIC WILL REMAIN ON THE COMPANY'S BOARD MR STEINER WILL CONTINUE AS CHAIRMAN AND CHIEF OF FAIRCHILD WHICH OWNS 40 OF BANNER HE WILL ALSO CONTINUE AS VICE CHAIRMAN OF REXNORD CORP MILWAUKEE A MAKER OF POWER TRANSMISSION PARTS REXNORD IS 45CONTROLLED BY FAIRCHILD BANNER SAID IT WON'T NAME A SUCCESSOR TO MR STEINER AS VICE CHAIRMAN 9308120096 930812 TECHNOLOGY COMPUTER CONSORTIUM INSTALLS SPEEDY LINK LIVERMORE CALIF THE FIBRE CHANNEL SYSTEMS INITIATIVE A COLLABORATION BY HEWLETTPACKARD CO INTERNATIONAL BUSINESS MACHINES CORP AND SUN MICROSYSTEMS INC ANNOUNCED INSTALLATION OF THE FIRST PROTOTYPE OF ITS NEW FAST FIBEROPTIC TECHNOLOGY FOR SPEEDING THE TRANSFER OF FILES BETWEEN COMPUTERS THE PROTOTYPE WILL BE USED AT THE LAWRENCE LIVERMORE NATIONAL LABORATORY IN COMPLEX COMPUTER SIMULATIONS OF FUSION EXPERIMENTS AND SIMILAR OPERATIONS SUCH EXPERIMENTS ARE SO COMPLEX THAT A SUPER COMPUTER CANNOT TACKLE THE JOB UNTIL A PHYSICIST FIRST MANIPULATES THE MODEL ON A WORKSTATION THEN TRANSFERS THE DATA FROM THE WORKSTATION BACK TO THE SUPERCOMPUTER USING STANDARD TECHNOLOGY THE TRANSFER OF 160 MEGABYTES OF DATA WHICH IS TYPICAL IN SUCH EXPERIMENTS CAN TAKE UP TO 40 MINUTES THE FIBRE CHANNEL GROUP SAID HOWEVER WITH THE PROTOTYPE FIBRE CHANNEL LINKUP THE DATA TRANSFER WILL TAKE ONLY EIGHT MINUTES WHEN SPEEDIER INTERCONNECTIONS BECOME AVAILABLE IN THE NEAR FUTURE THE FIBRE CHANNEL GROUP PREDICTED THE DATA TRANSFER COULD BE COMPLETED IN TWO SECONDS 9308120094 930803 HIGHER TAXES DO SO RAISE MONEY BY LAURA TYSON REPEATED EDITORIALS AND OPINION PIECES ON THIS PAGE HAVE ALLEGED THAT THE CLINTON ADMINISTRATION'S PLAN FOR DEFICIT REDUCTION WILL FAIL BECAUSE TAX INCREASES ON THE WEALTHIEST 12 OF AMERICANS WILL COLLECT AT MOST ONEQUARTER AND POSSIBLY EVEN NONE OF THE REVENUES FORECAST BY BOTH THE TREASURY DEPARTMENT AND THE JOINT COMMITTEE ON TAXATION OFTEN SUCH ALLEGATIONS HAVE BEEN ACCOMPANIED BY A SIMPLE CHART REPEATED BELOW SHOWING THE BEHAVIOR OF FEDERAL GOVERNMENT RECEIPTS OVER THE PAST 30 YEARS SEE ACCOMPANYING ILLUSTRATIONS WSJ AUG 3 1993 THIS GRAPH AND THE ARGUMENTS THAT ACCOMPANY IT PURPORTEDLY DEMONSTRATE THAT THERE IS NO RELATIONSHIP BETWEEN TAX COLLECTIONS AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT AND THE TOP MARGINAL TAX RATES ON THE HIGHEST INCOME INDIVIDUALS THE READER IS INVITED TO CONCLUDE THAT TRYING TO RAISE REVENUES TO REDUCE THE DEFICIT BY TAXING THE RICH WILL INEVITABLY FAIL BUT A MORE CAREFUL EXAMINATION OF THE HISTORICAL RECORD INDICATES THAT HIGHER INCOME TAX RATES DO INDEED TRANSLATE INTO HIGHER TAX REVENUES IN FACT THERE HAS BEEN SUBSTANTIAL VARIATION IN GOVERNMENT REVENUES OVER TIME VARIATION THAT IS OBFUSCATED BY THE SCALE ADOPTED IN THE FIRST CHART ONLY TAX CHANGES THAT ALTER RECEIPTS BY 10 TO 20 OF GDP OR 600 BILLION TO 12 TRILLION EACH YEAR ARE VISIBLE ON THIS SCALE A MORE APPROPRIATE SCALE WOULD REGISTER CHANGES OF EVEN ONE PERCENTAGE POINT OR 60 BILLION A YEAR IN TODAY'S DOLLARS NOT EVEN THE ADMINISTRATION'S HISTORIC DEFICIT REDUCTION PLAN NOW UNDER CONSIDERATION BY CONGRESS WOULD RAISE TAXES BY THE LATTER AMOUNT SINCE 1955 THERE HAVE BEEN MORE THAN A DOZEN INSTANCES WHEN TAX RECEIPTS HAVE RISEN OR FALLEN AS A SHARE OF GDP BY MORE THAN ONE PERCENTAGE POINT OVER A PERIOD OF ONE OR TWO YEARS AS AN ILLUSTRATION THE 1981 TAX CUTS WHICH THE REAGAN ADMINISTRATION BOLDLY CLAIMED WOULD INCREASE TAX REVENUES DECREASED THEM IN REAL TERMS AS A RESULT TAX RECEIPTS AS A SHARE OF GDP FELL BY 17 PERCENTAGE POINTS BETWEEN 1981 AND 1983 CAN VARIATIONS IN FEDERAL REVENUES OVER EXTENDED PERIODS OF TIME BE EXPLAINED BY CHANGES IN THE TOP MARGINAL INCOME TAX RATE YES BUT ONLY WHEN SEVERAL OTHER FACTORS ARE CAREFULLY ACCOUNTED FOR FIRST IT IS NECESSARY TO ADJUST FOR THE CHANGING COMPOSITION OF FEDERAL REVENUES OVER TIME SOCIAL SECURITY RECEIPTS FOR EXAMPLE CLIMBED TO 37 OF TOTAL REVENUES IN 1990 FROM 16 OF TOTAL REVENUES IN 1960 OF COURSE THERE IS NO REASON TO EXPECT A RELATIONSHIP BETWEEN TOP MARGINAL INCOME TAX RATES AND SOCIAL SECURITY TAX COLLECTIONS CONSEQUENTLY AS THE CONTRIBUTION OF SOCIAL SECURITY TAXES TO TOTAL REVENUES HAS INCREASED THE RELATIONSHIP BETWEEN INCOME TAX RATES AND TOTAL FEDERAL RECEIPTS HAS BECOME WEAKER SECOND THE TOP MARGINAL TAX RATE BY ITSELF IS NOT A STABLE INDICATOR OF THE TAX RATES FACING THE WEALTHIEST AMERICANS BOTH THE TOP RATE AND THE INCOME LEVEL AT WHICH IT APPLIES HAVE CHANGED SIGNIFICANTLY OVER TIME IN 1960 THE TOP RATE OF 91 APPLIED TO TAXABLE INCOME IN EXCESS OF 400000 IN 1982 THE TOP RATE OF 50 BEGAN AT ONLY 106000 AND IN 1988 THE TOP RATE FELL TO 28 BUT HIT TAXABLE INCOMES AS LOW AS 29750 USING INFLATIONADJUSTED DOLLARS A TAXPAYER WOULD HAVE FACED THE TOP TAX BRACKET IN 1960 ONLY IF HIS INCOME EXCEEDED 2 MILLION IN TODAY'S DOLLARS CLEARLY FAR FEWER TAXPAYERS CONFRONTED THE TOP MARGINAL TAX RATE IN 1960 THAN IN 1988 AS A RESULT OF DRAMATIC CHANGES IN THE NUMBER OF TAXPAYERS TO WHOM THE TOP RATE APPLIES THE AMOUNT OF REVENUE COLLECTED BY A CHANGE IN THIS RATE HAS VARIED ENORMOUSLY THIRD CHANGES IN THE DEFINITION OF TAXABLE INCOME OVER TIME ALSO OBSCURE THE RELATIONSHIP BETWEEN THE TOP TAX RATE AND TAX RECEIPTS FOR EXAMPLE THE 1986 TAX BILL WAS CONSTRUCTED TO ELIMINATE MANY DEDUCTIONS AND TO REDUCE BOTH INDIVIDUAL AND CORPORATE TAX RATES WITH NO NET CHANGE IN REVENUES DESPITE THESE AND OTHER COMPLICATING FACTORS SOME VERY SIMPLE EXERCISES CONFIRM A STRONG RELATIONSHIP BETWEEN TAX RATES AND TAX REVENUES THE SECOND CHART SHOWS FEDERAL REVENUES FROM PERSONAL INCOME TAXES INSTEAD OF TOTAL FEDERAL REVENUES AS A SHARE OF GDP LIKE THE EVIDENCE IN THE FIRST CHART ESPECIALLY WHEN APPROPRIATELY SCALED THE EVIDENCE IN THE SECOND CHART REVEALS SUBSTANTIAL VARIATION IN PERSONAL INCOME TAX RATES AND TAX RECEIPTS SEVERAL MAJOR TURNING POINTS ARE CLEARLY APPARENT THE 1964 INCOME TAX CUTS WHICH LOWERED THE TOP MARGINAL TAX RATE FROM 91 IN 1963 TO 70 OVER THE NEXT TWO YEARS THE 1969 VIETNAM SURTAX WHICH INCREASED THE TOP MARGINAL TAX RATE TO 77 FOR THE YEAR AND THE 1981 REAGAN TAX CUT WHICH REDUCED THE TOP MARGINAL TAX RATE IN 1982 TO 50 FROM 70 IN EACH OF THESE CASES PERSONAL INCOME TAX RECEIPTS BEHAVED AS EXPECTEDTHEY INCREASED AS A SHARE OF GDP WHEN THE TOP RATE INCREASED AND THEY DECREASED AS A SHARE OF GDP WHEN THE TOP RATE DECREASED OTHER FACTORS SUCH AS THE TAX REDUCTION ACT OF 1975 AND THE BRACKETCREEP OF THE 1970S VISIBLY AFFECTED TAX REVENUES WITHOUT CHANGING THE TOP MARGINAL INCOME TAX RATE IN THE CASE OF BRACKET CREEP INFLATION PUSHED MANY MORE TAXPAYERS INTO HIGHER MARGINAL TAX BRACKETS AND THIS LED TO AN INCREASE IN REVENUES AS THIS EXAMPLE ILLUSTRATES TO CAPTURE THE EFFECTS OF CHANGES IN THE STRUCTURE OF THE INCOME TAX ON FEDERAL RECEIPTS IT IS NECESSARY TO EXAMINE TAX RATES BELOW THE VERY TOP THIS CAN BE DONE WITH A SERIES REGULARLY REPORTED BY THE TREASURY DEPARTMENT ON THE MARGINAL INCOME TAX RATE CONFRONTING A HYPOTHETICAL FAMILY OF FOUR THAT EARNS TWICE THE MEDIAN INCOME A SIMPLE REGRESSION ANALYSIS INDICATES THAT THERE IS A STRONG AND STATISTICALLY SIGNIFICANT RELATIONSHIP BETWEEN THE MARGINAL TAX RATE FOR SUCH A FAMILY AND PERSONAL INCOME TAX REVENUES AS A SHARE OF GDP OVER THE 195592 PERIOD OVERALL THE HISTORICAL RECORD APPROPRIATELY INTERPRETED CONFIRMS THAT THE HIGHER TAX RATES ON THE WEALTHIEST AMERICANS PROPOSED IN THE CLINTON DEFICITREDUCTION PLAN WILL PRODUCE HIGHER REVENUES THIS IS NOT TO DENY THAT THESE TAXPAYERS WILL ADJUST TO HIGHER RATES IN A VARIETY OF OFTEN INGENIOUS WAYS TO MINIMIZE THEIR TAX OBLIGATIONS BUT THE DEGREE TO WHICH TAX AVOIDANCE WILL LOWER RECEIPTS HAS BEEN GREATLY EXAGGERATED THE POTENTIAL TO ENGAGE IN THE NOTORIOUS TAX SHELTERS OF THE 1980S NO LONGER EXISTS AS A RESULT OF THE 1986 TAX BILL NOR IS IT VERY LIKELY THAT THE WEALTHY WILL RESPOND TO HIGHER TAX RATES BY NOTICEABLE REDUCTIONS IN THEIR LABOR SUPPLY THE CLINTON ADMINISTRATION IS NOT ADVOCATING HIGHER TAX RATES TO PUNISH THE WEALTHY THE PROPOSED RATE INCREASES ON THE TOP PERCENTILE OF INCOME EARNERS ARE A NECESSARY PART OF THE LARGEST DEFICITREDUCTION PACKAGE IN THE NATION'S HISTORY THIS PACKAGE WILL BRING THE BENEFITS OF LOWER LONGTERM INTEREST RATES INCREASED NATIONAL SAVING AND INVESTMENT AND HIGHER LIVING STANDARDS TO ALL AMERICANS INCLUDING THE WEALTHIEST AMERICANS WHO ARE BEING ASKED TO SHOULDER THE BURDEN OF HIGHER TAXES MS TYSON IS CHAIR OF THE COUNCIL OF ECONOMIC ADVISERS SEE RELATED LETTERS DEAR LAURA TYSON WSJ AUG 11 1993 9308030051 YY93 MM08 9308120093 930812 WHO'S NEWS PRUDENTIAL TAPS LEWIS TO HEAD ITS PROPERTY AND CASUALTY CONCERN NEW YORK PRUDENTIAL INSURANCE CO OF AMERICA NAMED JEFFERY LEWIS TO HEAD ITS PROPERTY AND CASUALTY COMPANY IN AN EFFORT TO BEEF UP THE STRUGGLING UNIT'S MANAGEMENT MR LEWIS A 20YEAR VETERAN WITH AETNA LIFE & CASUALTY CO WAS NAMED PRESIDENT OF THE NEWARK NJ INSURER'S PRUDENTIAL PROPERTY & CASUALTY CO UNIT AT AETNA MR LEWIS WAS VICE PRESIDENT FOR THE COMPANY'S BUSINESS CENTER IN FALL RIVER MASS MR LEWIS 42 YEARS OLD FILLS A VACANCY CREATED IN FEBRUARY WHEN MICHAEL CAULFIELD WAS MOVED TO ANOTHER PRUDENTIAL UNIT AT THAT TIME MR CAULFIELD BECAME PRESIDENT OF PRUDENTIAL'S ORDINARY AGENCY UNIT WHICH SELLS LIFE INSURANCE TO UPSCALE CUSTOMERS MR CAULFIELD 46 HAD BEEN AT THE PROPERTY AND CASUALTY POST SINCE JANUARY 1992 PROPERTY AND CASUALTY HAS LATELY BEEN TOUGH ON PRUDENTIAL PRUDENTIAL LOST 900 MILLION ON HURRICANE ANDREW AND THEN GOT EMBROILED IN A FIGHT WITH THE STATE OF FLORIDA OVER ITS EFFORT TO REDUCE ITS EXPOSURE TO FUTURE STORMS PRUDENTIAL PROPERTY & CASUALTY IS THE NATION'S NINTHLARGEST CAR INSURER AND SIXTHLARGEST INSURER OF HOMES 9308120091 930812 POLITICS & POLICY ARMY GENERAL NAMED AS HEAD OF JOINT CHIEFS CLINTON PICKS SHALIKASHVILI COMMANDER OF NATO TO BE POWELL'S SUCCESSOR BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON SELECTED ARMY GEN JOHN SHALIKASHVILI THE POLISHBORN GRANDSON OF A CZARIST RUSSIAN GENERAL TO BE THE FIRST POSTCOLD WAR CHAIRMAN OF THE JOINT CHIEFS OF STAFF THE SELECTION OF GEN SHALIKASHVILI A 57YEAROLD FORMER DRAFTEE WHO CURRENTLY IS THE NORTH ATLANTIC TREATY ORGANIZATION'S MILITARY COMMANDER SENDS A STRONG SIGNAL THAT THE US INTENDS TO CONTINUE TO BE ENGAGED IN EUROPEAN AFFAIRS ESPECIALLY IN THE FORMER YUGOSLAVIA THE GENERAL HAS BEEN INTIMATELY INVOLVED IN FORMULATING NATO'S PENDING THREAT TO LAUNCH AIR STRIKES AGAINST BOSNIAN SERBS IF THEY CONTINUE TO BESIEGE THE BOSNIAN CAPITAL OF SARAJEVO HE SPENT LAST WEEKEND REVIEWING BOMBING PLANS THAT THEN WERE APPROVED BY THE NATO ALLIES MONDAY GEN SHALIKASHVILI HAS THE REPUTATION OF BEING SLIGHTLY MORE HAWKISH ON BOSNIA THAN IS THE CURRENT CHAIRMAN OF THE JOINT CHIEFS GEN COLIN POWELL WHO HAS WAGED A HIGHPROFILE YEARLONG CAMPAIGN TO KEEP THE US MILITARY OUT OF THE BALKAN FIGHTING MEETING WITH REPORTERS IN JANUARY GEN SHALIKASHVILI WHO SPEAKS WITH A SLIGHT ACCENT SAID I AM HARDPRESSED TO BELIEVE THAT THERE IS A MILITARY SOLUTION BUT THAT DOESN'T MEAN MILITARY FORCE CAN'T BE USED UNDERSCORING THE CLINTON ADMINISTRATION'S SIGNAL THAT IT INTENDS TO REMAIN INVOLVED IN EUROPE THE LEADING CANDIDATE TO SUCCEED GEN SHALIKASHVILI AS NATO'S COMMANDER IS THOUGHT TO BE ADM JEREMY BOORDA ANOTHER RELATIVE HAWK ADM BOORDA IS COMMANDER OF NATO'S FORCES IN SOUTHERN EUROPE AND IS IN CHARGE OF PREPARING THE AIRSTRIKE PLAN SPEAKING AT THE WHITE HOUSE YESTERDAY AFTER BEING INTRODUCED BY PRESIDENT CLINTON THE GENERAL SAID THE SERBS LATELY HAVE SENT MIXED SIGNALS ABOUT THEIR INTENTIONS I THINK WE NEED TO WATCH IT CAREFULLY OVER THE NEXT FEW DAYS HE SAID THE PRESIDENT WAS CLEARLY IMPRESSED BY THE GENERAL'S PERSONAL HISTORY AND FEEL FOR EUROPE BORN IN WARSAW IN 1936 THE GENERAL AND HIS FAMILY FLED THE CITY IN A CATTLE CAR AS THE RED ARMY ADVANCED SETTLING IN PEORIA ILL IN 1952 THE GENERAL IS SAID TO HAVE LEARNED ENGLISH BY WATCHING MOVIES WITH THE RESULT DEFENSE SECRETARY LES ASPIN NOTED YESTERDAY THAT HIS LANGUAGE IS A MIX OF A POLISH ACCENT AND JOHN WAYNE PHRASES DRAFTED IN 1958 JOHN SHALIKASHVILI BECAME AN ARTILLERY OFFICER A YEAR LATER HE SERVED IN VIETNAM FROM JANUARY 1968 THROUGH JUNE 1969 AND WAS DECORATED FOR HIS SERVICE IN COMBAT AS AN ADVISER TO SOUTH VIETNAMESE UNITS HE ALSO SERVED IN KOREA IN 1971 AND 1972 AT THE END OF THE PERSIAN GULF WAR HE OVERSAW OPERATION PROVIDE COMFORT THE EFFORT TO AID THE KURDS IN NORTHERN IRAQ BUT THE CENTRAL THEME OF HIS CAREER HAS BEEN EUROPE WHERE THE POLISH AND GERMANSPEAKING OFFICER HAS SERVED SEVEN TOURS OF DUTY PRESIDENT CLINTON SAID HE CLEARLY UNDERSTANDS THE MYRIAD OF CONFLICTS ETHNIC RELIGIOUS AND POLITICAL GRIPPING THE WORLD DEFENSE SECRETARY ASPIN SAID THE PROCESS OF SELECTING THE NEW CHAIRMAN OF THE JOINT CHIEFS BEGAN ABOUT SIX WEEKS AGO AND CULMINATED TUESDAY NIGHT IN AN AFTERDINNER CONVERSATION BETWEEN HIMSELF THE PRESIDENT AND DEPUTY NATIONAL SECURITY ADVISER SAMUEL BERGER THE TWO MOST IMPORTANT CRITERIA IN THE SELECTION PROCESS SAID MR ASPIN WERE THE ABILITY TO LEAD THE MILITARY IN A WAR AND THE ABILITY TO ADVISE THE PRESIDENT ON THE USE OF FORCE GEN SHALIKASHVILI IS EXPECTED TO BE QUICKLY CONFIRMED BY THE SENATE GEN SHALIKASHVILI ALSO CLEARLY APPEALED TO THE PRESIDENT AS SOMEONE WHO IS LIKE GEN POWELL AN AMERICAN SUCCESS STORY PRESIDENT CLINTON RECOUNTED THE GENERAL'S LIFE STORY CONCLUDING WITH THE CLICHE ONLY IN AMERICA BUT UNLIKE HIS PREDECESSOR GEN SHALIKASHVILI BRINGS TO THE JOB ONLY LIMITED EXPERIENCE IN WASHINGTON INDEED HE IS PROBABLY BETTER KNOWN IN EUROPE THAN HE IS IN THE US WITH NO BASE HERE HE IS FAR LESS LIKELY TO CHALLENGE THE WHITE HOUSE THAN GEN POWELL HAS DONE ON BALKANS POLICY AND OTHER QUESTIONS SUCH AS ALLOWING OPENLY GAY PEOPLE TO SERVE IN THE MILITARY 9308120090 930812 WHO'S NEWS ATMOS ENERGY CORP ATMOS ENERGY CORP DALLAS HF HARBER WAS NAMED SENIOR VICE PRESIDENT CORPORATE SERVICES OF THIS NATURAL GAS COMPANY MR HARBER 51 YEARS OLD AND CURRENTLY VICE PRESIDENT HUMAN RESOURCES WILL ASSUME THE DUTIES OF JERRY D KNIERIM 54 EXECUTIVE VICE PRESIDENT OF CORPORATE SERVICES WHO IS RETIRING THE COMPANY ALSO NAMED CLEABURNE FRITZ 47 VICE PRESIDENT INFORMATION AND ADMINISTRATIVE SERVICES MR FRITZ WAS PREVIOUSLY DIRECTOR INFORMATION AND ADMINISTRATIVE SERVICES 9308120089 930812 MESA AIR TRAFFIC DROPS FARMINGTON NM MESA AIRLINES SAID JULY TRAFFIC FELL 08 TO 78933000 REVENUE PASSENGER MILES FROM 79538000 A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE REGIONAL AIRLINE SAID ITS LOAD FACTOR OR AVAILABLE SEATS FILLED DECLINED TO 519 FROM 555 FOR THE FIRST SEVEN MONTHS OF THE YEAR TRAFFIC SURGED 89 TO 540712000 REVENUE PASSENGER MILES FROM 285730000 LOAD FACTOR ROSE TO 497 FROM 478 9308120088 930812 ECONOMY MORGAN STANLEY AGREES TO PURCHASE MANHATTAN SKYSCRAPER FOR 176 MILLION BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MORGAN STANLEY GROUP INC HAS AGREED TO PURCHASE A MOSTLY VACANT 42STORY MANHATTAN SKYSCRAPER FOR 176 MILLION TO SERVE AS ITS NEW HEADQUARTERS IN THE LARGEST SUCH COMMERICAL REAL ESTATE DEAL STRUCK IN NEW YORK IN SEVERAL YEARS THE SEALEDBID AUCTION CONDUCTED ON BEHALF OF EIGHT FOREIGN BANKS WHICH SET A MINIMUM ALLCASH BID OF 150 MILLION DREW OFFERS FROM SUCH POTENTIAL BUYERS AS THE REAL ESTATE FUND SET UP BY FINANCIER GEORGE SOROS AND MANAGED BY PAUL REICHMANN THE FORMER CONTROLLING SHAREHOLDER OF THE OLYMPIA & YORK PROPERTY EMPIRE THE 13 MILLIONSQUAREFOOT BUILDING AT 1585 BROADWAY IN THE TIMES SQUARE AREA BETWEEN 47TH AND 48TH STREETS WAS COMPLETED IN 1990 AT A COST OF OVER 350 MILLION NEW YORK REAL ESTATE BROKERS SAID THE DEAL MIGHT HELP THE CITY'S STAGNANT COMMERCIAL REAL ESTATE MARKET IT'S A SPECTACULAR STATEMENT ABOUT THE NEW YORK MARKET SAID STEPHEN SIEGEL PRESIDENT OF EDWARD S GORDON CO A NEW YORK BROKERAGE 176 MILLION IS FAR MORE THAN I WOULD HAVE EXPECTED IT TAKES A BUILDING THAT WAS PRACTICALLY EMPTY AND SHOWS IT HAS VALUE TO A MAJOR FINANCIAL INSTITUTION THAT WANTS TO STAY IN NEW YORK SAID WILLIAM STERN MANAGING DIRECTOR OF SONNENBLICKGOLDMAN CO ANOTHER NEW YORK REAL ESTATE FIRM MORGAN STANLEY WHICH AGREED LAST YEAR TO KEEP ITS HEADQUARTERS OPERATIONS IN NEW YORK CITY AFTER CONSIDERING RELOCATION TO THE SUBURBS SAID IT WOULD CONSOLIDATE ITS MANHATTAN OPERATIONS INTO THE BUILDING FROM TWO OTHER MIDTOWN SITES MORGAN'S CHAIRMAN RICHARD FISHER TERMED THE BUILDING AN EXCELLENT VALUE AND SAID IT WOULD ALLOW THE FIRM TO SUBSTANTIALLY REDUCE OUR LONGTERM OCCUPANCY COSTS THE PROPERTY WAS DEVELOPED BY DAVID SOLOMON OF MANHATTAN'S SOLOMON EQUITIES THE PARTNERSHIP THAT OWNED THE BUILDING WENT INTO BANKRUPTCYCOURT PROCEEDINGS IN DECEMBER 1991 THERE IS A BITTERSWEET IRONY TO THIS SAID MR SOLOMON THE BUILDING WAS ORIGINALLY DEVELOPED FOR MORGAN STANLEY'S OCCUPANCY THEN IT DECIDED NOT TO MOVE THERE THE PROPERTY THE LARGEST NEARLY VACANT BUILDING LEFT IN MIDTOWN MANHATTAN IS CURRENTLY CONTROLLED BY A BANKING GROUP LED BY BANK OF MONTREAL TORONTODOMINION BANK AND SWISS BANK CORP IN FEBRUARY PRIMERICA CORP'S SMITH BARNEY HARRIS UPHAM & CO UNIT REACHED A PRELIMINARY AGREEMENT TO PURCHASE THE BUILDING BUT WITHDREW THE OFFER AFTER IT AGREED TO PURCHASE THE RETAIL BROKERAGE AND ASSETMANAGEMENT BUSINESSES OF SHEARSON LEHMAN BROTHERS INC FROM AMERICAN EXPRESS CO HINES INTERESTS LTD PARTNERSHIP WHICH WAS RETAINED BY THE BANKS TO SELL THE PROPERTY BEGAN SOLICITING BIDS SEVERAL MONTHS AGO AND SET A DEADLINE OF EARLY AUGUST THE BUILDING'S ONLY CURRENT MAJOR OCCUPANT IS THE LAW FIRM OF PROSKAUER ROSE GOETZ & MENDELSOHN WHICH OCCUPIES 365000 SQUARE FEET OF SPACE IN THE BUILDING 9308120087 930812 MARKETING & MEDIA ADVERTISING GM'S SATURN UNIT HANDLES RECALL WITH PERSONAL TOUCH BUT NO ADS BY KEVIN GOLDMAN SATURN SUCCESSFULLY DROVE ONTO THE SCENE THREE YEARS AGO WITH HEARTFELT ADVERTISING FEATURING REAL CUSTOMERS IN A CAMPAIGN THAT AD EXECUTIVES HAILED AS OUT OF THIS WORLD BUT IT IS USING A DECIDEDLY NONADVERTISING TACK IN CONFRONTING ITS NEW CRISIS THE RECALL OF ALL OF THE 352767 CARS THE GENERAL MOTORS UNIT BUILT BEFORE LAST APRIL 15 SATURN ISN'T MENTIONING THE VOLUNTARY RECALL PROMPTED BY A WIRING PROBLEM THAT HAS RESULTED IN AN ISOLATED NUMBER OF ENGINE FIRES IN ITS LATEST BATCH OF COMMERCIALS FROM AD AGENCY HAL RINEY & PARTNERS SAN FRANCISCO IT HAS NO PLANS TO SUSPEND ANY ADVERTISING EVEN IF THE CURRENT SPOTS PROVE EMBARRASSING AS THEY HIGHLIGHT CUSTOMER SATISFACTION AND THE VEHICLE'S ROAD PERFORMANCE NOR IS THERE ANY CHANGE PLANNED IN THE SATURN SLOGAN A DIFFERENT KIND OF COMPANY A DIFFERENT KIND OF CAR EVEN THOUGH THAT IS NOW OPEN TO POSSIBLE RIDICULE INSTEAD SATURN IS RELYING ON A GRASSROOTS EFFORT THAT ECHOES ITS ORIGINAL AW SHUCKS SMALLTOWN PERSONTOPERSON STRATEGY SATURN HAS ALWAYS STRESSED THE INDIVIDUAL WORKER AND OWNER INSTEAD OF THE POWERFUL MONOLITH OF GENERAL MOTORS SO IN MOUNTING THE RECALL SATURN IS INITIALLY CONTACTING EACH CUSTOMER WITH A ONEPAGE SINGLESPACED LETTER THAT WARNS OF A DEFECT THAT UNDER CERTAIN CONDITIONS COULD RESULT IN AN UNDERHOOD FIRE THE COMPANY'S 261 INDIVIDUAL DEALERS ARE ALSO REACHING OUT TO SATURN OWNERS SOMETIMES BY TELEPHONE ASKING THEM TO BRING IN THEIR AUTOMOBILES FOR SERVICE SATURN IS PROMISING CUSTOMERS THAT SERVICING THE DEFECT WILL TAKE ONLY 20 MINUTES BUT THE DEMAND PLACED ON DEALERSHIPS DURING EVENING HOURS AND ON WEEKENDS WHEN MOST CUSTOMERS ARE EXPECTED TO SHOW UP WILL MEAN LONGER WAITS SO DEALERS SUCH AS SATURN OF FARMINGTON HILLS IN MICHIGAN AND SATURN OF IRVING NEAR DALLAS ARE PLANNING BARBECUES OR ARRANGING TRIPS TO THE MOVIES FOR CUSTOMERS WITH SATURN PICKING UP THE TAB FOR ADMISSION AND TRANSPORTATION WHILE CUSTOMERS WAIT FOR THEIR CARS SATURN'S STRATEGY OF MAINTAINING SILENCE ON THE HIGHLY PUBLICIZED RECALL IN ITS PAID ADVERTISING IS A GAMBLE THE COMPANY'S ATTENTION IS CLEARLY FOCUSED ON EXISTING CUSTOMERS AND WHAT COULD BE DONE FOR THEIR CONVENIENCE SOMEWHAT IGNORED ARE POTENTIAL BUYERS WHO MIGHT WONDER WHAT IS GOING ON WITH SATURN ANYWAY HAD SATURN CHOSEN TO ADDRESS THE EVENTS IN ADS IT MIGHT BE ABLE TO TURN A POTENTIAL PUBLICRELATIONS DISASTER INTO A MARKETING OPPORTUNITY SAYS STEVEN E PERMUT PRESIDENT OF MARKETING SCIENCES A CONSULTING FIRM FOR EXAMPLE SATURN COULD STRESS THAT THE COMPANY CHOSE TO TAKE AGGRESSIVE CORRECTIVE ACTION WITHOUT GOVERNMENT PRESSURE IN CONTRAST TO THE BEHAVIOR OF OTHER AUTO MAKERS IN THE PAST THE DAMAGE DONE SO FAR AFTER ALL HASN'T BEEN ALL THAT GREAT THE DEFECT HASN'T CAUSED ANY INJURIES OR DEATHS AND HAS BEEN LINKED TO ONLY 34 FIRES OF MORE THAN 350000 CARS SOLD THE QUESTION ADDRESSING SATURN ISN'T A DESIGN QUESTION SAYS MR PERMUT IT'S A MARKETING QUESTION MR PERMUT ARGUES THAT SATURN SHOULD BE BLANKETING TALK SHOWS WITH EXPERTS SAYING HOW EVERYTHING IS UNDER CONTROL THAT SATURN SHOULD LEAVE A LITTLE TRINKET GIFT WRAPPED NO LESS ON THE FRONT SEAT OF THE SATURN WHEN THE CUSTOMER RETRIEVES IT AND THAT AN EXTRA REBATE SHOULD BE OFFERED IF THE CUSTOMER BUYS ANOTHER GENERAL MOTORS CAR IN THE NEXT THREE YEARS SATURN DOESN'T QUITE AGREE WITH MR PERMUT'S MAGNANIMOUS SUGGESTION WE DON'T SEE THE NEW RECALL AS AN ADVERTISING ISSUE SAYS STEVE SHANNON SATURN'S DIRECTOR OF CONSUMER MARKETING THOUGH IN THEORY I COULD UNDERSTAND WHY ONE MIGHT WANT TO DO SOME ADVERTISING MR SHANNON SAYS THE COMPANY ISN'T PLANNING ON SAY HAVING CAMERA CREWS FROM AD AGENCY RINEY VISIT SATURN DEALERS TO FILM SATURN CUSTOMERS SITTING AROUND PLAYING BINGO OR MUNCHING HOT DOGS WHILE THE OFFENDING CAR IS ON THE RACK RINEY IS QUALIFIED FOR SUCH HOMESPUN ADVERTISING HOWEVER IT PRODUCED THE IT'S MORNING AGAIN IN AMERICA CAMPAIGN IN 1980 FOR THENPRESIDENTIAL CANDIDATE RONALD REAGAN FOR SATURN IT CREATED AN AD USING A REAL LETTER FROM A SCHOOLTEACHER SAYING HOW SHE WAS PLANNING TO BUY A SATURN BECAUSE IT REMINDS ME OF HOW COMPANIES DID BUSINESS IN THE OLD DAYS THE AD INTERSPERSED SHOTS OF THE TEACHER IN THE CLASSROOM WITH ASSEMBLY LINE WORKERS LOOKING AT HER SNAPSHOT WHILE BUILDING THE CAR WHEN IT'S COMPLETED AN EMPLOYEE PUTS HER PHOTO IN THE GLOVE COMPARTMENT WE THINK OUR ADVERTISING IS STILL CREDIBLE SAYS MR SHANNON WE AIM FOR CUSTOMER SATISFACTION AND THAT WILL STILL BE THE CENTER OF THE ADVERTISING INDEED SATURN HAS A TRUMP CARD ITS CUSTOMERS' GOOD WILL SATURN HAS OUTSTANDING CUSTOMER SATISFACTION SAYS JOHN HAMMOND SENIOR VICE PRESIDENT AT JD POWER & ASSOCIATES WHICH FOLLOWS AUTOMOTIVE SALES AND TRACKS CONSUMER OPINION ON THE INDUSTRY IT'S AMONG THE ELITE IF NOTHING ELSE GOES WRONG WITH SATURN SAYS MR HAMMOND THIS HOPEFULLY WILL BE A DIM MEMORY REVIEW SAYING IT WAS TIME FOR A FRESH LOOK FOR THEIR ADS AMERITECH CORP THE MIDWESTERN TELEPHONE COMPANY SAID IT FIRED BAYER BESS VANDERWARKER IN CHICAGO FROM THE CREATIVE PART OF ITS 10 MILLION CORPORATE ADVERTISING ACCOUNT FIVE CONTENDERS HAVE BEEN INVITED TO PITCH AMERITECH SAID INCLUDING FALLON MCELLIGOTT MINNEAPOLIS AND WIEDEN & KENNEDY PORTLAND ORE THREE OF AMERITECH'S EXISTING AGENCIES ARE CONTENDERS TOO CRAMERKRASSELT IN MILWAUKEE AND THE CHICAGO OFFICE OF OMNICOM GROUP'S DDB NEEDHAM AND TATHAM EURO RSCG CHICAGO IBM DIRECT INTERNATIONAL BUSINESS MACHINES CORP HIRED TWO DIRECT MARKETING AGENCIES TO PROMOTE COMPUTERS THROUGH ITS TOLLFREE TELEPHONEORDERING CHANNEL BRONNER SLOSBERG HUMPHREY BOSTON IS CREATING ADS FOR THE IBM DIRECT PROGRAM AND CERTAIN PRODUCTS SOLD VIA THE TOLLFREE TELEPHONE NUMBER BARRY BLAU & PARTNERS FAIRFIELD CONN GETS THE ASSIGNMENT FOR NETWORKING AND OTHER SYSTEMS SOFTWARE AND SERVICES WHO'S NEWS MICHAEL TRAGER WAS NAMED EXECUTIVE VICE PRESIDENT OF SALES AND MARKETING OF THE JOINT VENTURE FOR BROADCASTING AND AD SALES INVOLVING MAJOR LEAGUE BASEBALL AND CAPITAL CITIES/ABC'S ABC AND GENERAL ELECTRIC'S NBC NETWORKS MR TRAGER 51 YEARS OLD WAS PREVIOUSLY CHAIRMAN OF SPORTS MARKETING AND TELEVISION INTERNATIONAL WHICH NEGOTIATES BROADCASTING AND SPONSORSHIP RIGHTS FOR EVENTS INCLUDING THE COTTON BOWL AND THE BREEDER'S CUP 9308120086 930812 WHO'S NEWS FEDERATED FIGHT INVOLVING FARAH LOSES URGENCY BY TERI AGINS AND JENNIFER CODY STAFF REPORTERS OF THE WALL STREET JOURNAL FEDERATED DEPARTMENT STORES INC WITHDREW ITS REQUEST FOR AN INJUNCTION PREVENTING ROGER FARAH ONE OF ITS EXECUTIVES FROM BECOMING A TOP OFFICER AT RIVAL RH MACY & CO BUT THE FIGHT OVER MR FARAH ISN'T OVER FEDERATED CONTINUES TO SEEK A RULING FROM COMMON PLEAS COURT IN CINCINNATI THAT THE 40YEAROLD MR FARAH VIOLATED HIS CONTRACT BY ACCEPTING THE POSITIONS OF PRESIDENT AND CHIEF OPERATING OFFICER AT MACY FEDERATED SATURDAY WON A TEMPORARY RESTRAINING ORDER PREVENTING MR FARAH CHAIRMAN OF FEDERATED'S MERCHANDISING DIVISION FROM BREACHING HIS FEDERATED CONTRACT BY JOINING MACY BUT NOW THAT MACY HAS DISCLOSED THAT MR FARAH AGREED TO JOIN MACY ON JULY 1 1994 THE DAY AFTER HIS FEDERATED CONTRACT EXPIRES FEDERATED OFFICIALS SAY THAT THERE IS NO LONGER A SENSE OF URGENCY TO RESTRAIN MR FARAH A FEDERATED SPOKESWOMAN YESTERDAY SAID WE ARE IN THE PROCESS OF DISCUSSING WITH MR FARAH'S ATTORNEY WHAT HAPPENS WHEN HE IS DUE BACK TO WORK FROM VACATION ON MONDAY FEDERATED SAID IT NOW IS ASKING THE OHIO COURT TO SCHEDULE NO LATER THAN JUNE 30 1994 A FULL TRIAL ON THE MERITS OF ITS CLAIMS THAT MR FARAH'S AGREEMENT WITH MACY REACHED LATE LAST WEEK VIOLATES HIS FEDERATED CONTRACT MR FARAH'S CONTRACT INCLUDES A NONCOMPETE CLAUSE THAT EXTENDS TWO YEARS BEYOND THE EXPIRATION DATE MACY OFFICIALS DECLINED TO COMMENT SEPARATELY FEDERATED SAID IT REVERSED A YEAREARLIER LOSS IN THE FISCAL SECOND QUARTER ENDED JULY 31 AND OPERATING INCOME MORE THAN DOUBLED HOWEVER FEDERATED SHARES FELL 39 OR 875 CENTS TO 2175 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING OFFICIALS SAID THEY WERE PLEASED WITH THE RESULTS WHICH WERE ABOVE EXPECTATIONS BUT WARNED WE DON'T EXPECT THIS RATE OF IMPROVEMENT TO CONTINUE THROUGH THE FALL THE BIG RETAILER SAID NET INCOME ROSE TO 89 MILLION OR SEVEN CENTS A SHARE FROM A YEAREARLIER LOSS OF 294 MILLION OR 26 CENTS A SHARE THE YEAREARLIER FIGURE INCLUDES A LOSS OF 136 MILLION OR 12 CENTS A SHARE FOR EXTINGUISHMENT OF DEBT SALES ROSE 3 TO 150 BILLION FROM 146 BILLION THE COMPANY CITED FRESHER INVENTORIES BETTER MERCHANDISE ASSORTMENTS IMPROVED EXPENSE CONTROLS AND OPERATING EFFICIENCIES FOR THE GAINS THE COMPANY NOTED THAT THE NEW FEDERAL TAX LEGISLATION WILL INCREASE ITS TAX BILL RETROACTIVELY TO JAN 1 AND WILL REQUIRE TWO ADJUSTMENTS TOTALING ABOUT 15 MILLION OR 12 CENTS A SHARE IN THE THIRD QUARTER IN ADDITION TO THE TAX INCREASE THE RESULTS WERE SLIGHTLY HIGHER THAN ANALYSTS' EXPECTATIONS MOSTLY BECAUSE OF THE HIGHER SALES FIGURE CJ LAWRENCE INC ANALYST JEFFREY EDELMAN CALLED THE RESULTS IMPRESSIVE ALTHOUGH HE ADDED THAT THEY WEREN'T ENOUGH TO PROMPT HIM TO CHANGE HIS 1994 EARNINGS ESTIMATE OF 175 A SHARE SALOMON BROTHERS ANALYST JEFFREY FEINER ALSO SAID THE RESULTS WERE SLIGHTLY ABOVE OUR ESTIMATE ADDING THAT WITH A STRONGER CONSUMER SPENDING ENVIRONMENT ADDITIONAL MERCHANDISING AND OPERATIONAL IMPROVEMENTS WE PROJECT 1994 EARNINGS PER SHARE WILL RISE BY ABOUT 22 TO 180 FEDERATED SAID COMPARABLESTORE SALES ROSE 4 IN THE SECOND QUARTER THE RETAILER PLANS TO OPEN THREE NEW STORES IN THE SECOND HALF 9308120085 930812 ABREAST OF THE MARKET INDUSTRIALS RISE 1062 TO A RECORD THE SECOND NEW HIGH THIS WEEK BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A STRONG RALLY IN SEMICONDUCTOR AND ECONOMICALLY SENSITIVE STOCKS LIFTED THE DOW JONES INDUSTRIAL AVERAGE TO ITS SECOND RECORD THIS WEEK PICKING UP WHERE IT LEFT MONDAY THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 1062 POINTS TO 358335 BIG GAINS IN CATERPILLAR WHICH JUMPED 1 5/8 TO 82 3/8 AND MINNESOTA MINING & MANUFACTURING WHICH LEAPT 1 5/8 TO 108 1/2 HELPED TO BUOY THE INDUSTRIAL AVERAGE STANDARD & POOR'S 500STOCK INDEX ADDED 101 TO 45046 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EDGED UP 036 TO 24999 VOLUME ON THE BIG BOARD TOTALED 266134730 SHARES UP FROM 255493940 SHARES TUESDAY ADVANCING ISSUES OUTNUMBERED DECLINERS 1059 TO 885 MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER SAID HE IS SURPRISED THE DOW JONES INDUSTRIALS ARE SETTING HIGHS ESPECIALLY AFTER TUESDAY'S REPORT ON CORPORATE PRODUCTIVITY THE LABOR DEPARTMENT SAID THAT AVERAGE NONFARM OUTPUT PER HOUR SANK AT A SEASONALLY ADJUSTED ANNUAL RATE OF 25 FROM APRIL TO JUNE THE SECOND QUARTERLY DROP THIS YEAR AND THE BIGGEST DECLINE IN MORE THAN FOUR YEARS IT'S AMAZING TO ME THAT THE MARKET IS IGNORING A VERY SIGNIFICANT PIECE OF BAD NEWS SAID MR METZ THE WHOLE BULL MARKET STORY IS BUILT ON A SPECTACULAR IMPROVEMENT IN CORPORATE PRODUCTIVITY NOT ON BIG UNIT GAINS OR PRICING POWER MR METZ SAID INVESTORS ARE ALREADY LOOKING AT A MARKET WHERE STOCK PRICES ARE EXPENSIVE BY HISTORICAL STANDARDS NOW THEY FACE THE ADDITIONAL RISK THAT CORPORATE EARNINGS MAY NOT MEET EXPECTATIONS MR METZ SAID IT IS WORTH NOTING THAT WHILE BROAD STOCK MARKET AVERAGES SUCH AS THE DOW JONES INDUSTRIALS AND THE NASDAQ COMPOSITE INDEX ARE SAILING TO HIGHS COUNTLESS INDIVIDUAL STOCKS INCLUDING A HOST OF DRUG COMPANY SHARES ARE HOVERING AT OR NEAR 52WEEK LOWS THE AVERAGES ARE REALLY REFLECTING THE STRONG PERFORMANCE BY A VERY SMALL SEGMENT OF THE MARKET SAID MR METZ INDEED EVEN AS THE INDUSTRIALS CLIMBED YESTERDAY INVESTORS WERE PUNISHING A BROAD ARRAY OF MEDICAL COMPANY STOCKS TOGETHER WITH DRUG STOCKS THIS GROUP HAS BEEN UNDER PRESSURE RECENTLY ON CONCERNS THAT NOW THAT THE BUDGET DEFICITREDUCTION PACKAGE HAS PASSED CONGRESS PRESIDENT CLINTON WILL FOCUS ON HEALTHCARE REFORM HEALTHCARE STOCKS SUFFERED AN ADDITIONAL BLOW WHEN DONALDSON LUFKIN & JENRETTE DOWNGRADED THE HEALTH MAINTENANCE ORGANIZATION STOCKS UNITED HEALTHCARE TUMBLED 6 3/4 TO 52 3/4 AND SEVERAL OTHER STOCKS FELL IN OVERTHECOUNTER TRADING THE SELLOFF SPREAD TO OTHER MEDICAL RELATED STOCKS MERCK LOST 1/2 TO 29 1/2 SLIPPING TO A 52WEEK LOW MEDTRONIC WHICH MAKES PACEMAKERS EASED 3/4 TO 57 5/8 AND JOHNSON & JOHNSON EASED 1/2 TO 35 5/8 A 52WEEK LOW BUT SEMICONDUCTOR STOCKS ADVANCED ON SIGNS OF BETTER DEMAND FOR CHIPS MOTOROLA GAINED 1 TO 96 TEXAS INSTRUMENTS ADDED 3/4 TO 77 1/4 AND ADVANCED MICRO DEVICES ROSE 1 1/4 TO 29 5/8 PRECIOUS METALS STOCKS LOST THEIR GLITTER AS GOLD PRICES SLID HOMESTAKE MINING DROPPED 1/2 TO 19 1/4 NEWMONT MINING PLUMMETED 1 1/2 TO 50 3/8 AND AMERICAN BARRICK EASED 3/8 TO 25 1/8 WOOLWORTH FELL 7/8 TO 24 3/4 THE RETAILER REPORTED SECONDQUARTER PROFIT FELL TO ONE CENT A SHARE FROM 25 CENTS A SHARE A YEAR AGO WILLIAM K LAVIN CHAIRMAN AND CHIEF EXECUTIVE SAID WEAK ECONOMIC CONDITIONS AND LOW CONSUMER CONFIDENCE CONTINUE TO DEPRESS SALES AND GROSS MARGINS MAKING IT UNLIKELY THAT THERE WILL BE A YEARTOYEAR INCREASE IN EARNINGS EQUITABLE SURGED 4 TO 25 1/4 HITTING A 52WEEK HIGH THE INSURER REPORTED A PROFIT OF 475 MILLION FOR THE SECOND QUARTER AFTER A LOSS IN THE YEARAGO PERIOD PROMUS SOARED 6 3/8 TO 64 3/8 THE CASINO CONCERN WON THE BACKING OF A LOUISIANA COMMISSION TO OPEN A CASINO IN NEW ORLEANS ALONG WITH A LOCAL PARTNER THE COMMISSION HAD BEEN EXPECTED TO APPROVE A COMPETING BID FROM CEASARS WORLD WHICH TUMBLED 2 3/4 TO 43 1/8 MAXUS SLUMPED 1 1/8 TO 8 3/8 IN HEAVY TRADING SEVERAL WALL STREET ANALYSTS CUT THEIR INVESTMENT RATINGS FOR THE STOCK JUST A DAY AFTER IT HAD RALLIED ON REPORTS OF A COLOMBIAN OIL FIND SOME ANALYSTS SAID THEY FELT THE COMPANY'S STOCK IS OVERVALUED AFTER TUESDAY'S JUMP MAGNETEK FELL 2 TO 14 1/4 SALOMON BROTHERS DOWNGRADED ITS RATING ON THE STOCK TO HOLD FROM BUY SALOMON SAID EARNINGS FOR THE ELECTRICAL PRODUCTS MAKER MAY BE WEAKER IN COMING QUARTERS AS INVENTORY IS REDUCED REEBOK EASED 7/8 TO 23 5/8 AND NIKE SKIDDED 3 1/4 TO 49 7/8 TO A 52WEEK LOW ANALYSTS SAID SHARES OF SNEAKER MAKERS HAVE BEEN DEPRESSED ON FEARS THAT EUROPEAN SALES ARE WEAK AND LOW CONSUMER CONFIDENCE IN THE US WILL LEAD TO DIMINISHED SALES HERE THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX FELL 032 TO 43887 THERE WERE 303 ADVANCERS AND 256 DECLINERS 9308120084 930812 WHO'S NEWS SEARS ROEBUCK NAMES 2 OUTSIDERS EXPANDING BOARD BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO SEARS ROEBUCK & CO ADDED TWO DIRECTORS IN A MOVE THAT CONTINUES THE TRANSFORMATION OF ITS BOARD WHICH WAS ONCE CRITICIZED FOR BEING DOMINATED BY INSIDERS INTO AN ASSEMBLY COMPOSED NEARLY ENTIRELY OF OUTSIDERS SEARS NAMED HALL CAP ADAMS JR AND JAMES W COZAD TO ITS BOARD EXPANDING IT TO 11 MEMBERS THE RETAIL AND FINANCIAL SERVICES CONCERN SAID YESTERDAY IN RECENT YEARS SEARS' INSIDERRIVEN BOARD HAS BEEN CRITICIZED BY SHAREHOLDERS GROUPS WHO BELIEVED THE COMPANY WAS MOVING TOO SLOWLY TO REMEDY ITS PROBLEMS IN 1989 FOR EXAMPLE EIGHT OF THE 16 DIRECTORS WERE EITHER EMPLOYEES OR HAD CLOSE TIES TO THE COMPANY NOW ONLY ONE EMPLOYEE SITS ON THE BOARD CHAIRMAN AND CHIEF EXECUTIVE EDWARD A BRENNAN THEY SEARS HAVE PERFORMED ADMIRABLY AND I HAVE A LOT OF RESPECT FOR WHAT THEY HAVE ACCOMPLISHED SAID ROBERT AG MONKS OF THE BOARD REFORMATION IT WAS MR MONKS WHO TWO YEARS AGO LAUNCHED AN UNSOLICITED AND UNSUCCESSFUL PROXY BID TO RUN FOR SEARS' BOARD IN RESPONSE SEARS REMOVED FIVE INSIDERS SEARS ALSO MADE MANY OF THE RESTRUCTURING CHANGES MR MONKS HAD ADVOCATED MR ADAMS 60 YEARS OLD IS THE RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CHICAGO ADVERTISING FIRM LEO BURNETT CO MR COZAD 63 IS THE RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WHITMAN CORP A ROLLING MEADOWS ILL CONSUMER PRODUCTS HOLDING COMPANY AND FORMER VICE CHAIRMAN OF AMOCO CORP THEIR APPOINTMENTS ARE EFFECTIVE IMMEDIATELY AND THE TWO WILL STAND FOR REELECTION AT NEXT YEAR'S ANNUAL MEETING SEARS ALSO NAMED ROLANDO DE AGUIAR VICE PRESIDENT A NEW POSITION AND CONTROLLER OF ITS MERCHANDISE DIVISION AND NAMED JOSEPH SMIALOWSKI AS A VICE PRESIDENT AND CHIEF INFORMATION OFFICER FOR THE UNIT MR DE AGUIAR 45 HAS BEEN VICE PRESIDENT OF PLANNING AND DEVELOPMENT FOR SEARS' MEXICAN RETAIL OPERATIONS HE TAKES OVER THE CONTROLLER'S POST VACATED BY THE EARLY RETIREMENT OF BEN CUBITO MR SMIALOWSKI 44 WAS A PARTNER IN THE MANAGEMENT HORIZONS RETAIL CONSULTING UNIT OF PRICE WATERHOUSE HE SUCCEEDS ROBERT FERKENHOFF WHO RETIRED 9308120083 930812 FIRST FINANCIAL MANAGEMENT JOB ATLANTA FIRST FINANCIAL MANAGEMENT CORP SAID ITS NABANCO UNIT WAS AWARDED A NATIONAL CONTRACT BY RH MACY & CO THE DEPARTMENT STORE CHAIN TO PROVIDE MERCHANT CREDITCARD AUTHORIZATION AND PROCESSING SERVICES FOR ALL MACY'S DIVISIONS ACROSS THE COUNTRY FIRST FINANCIAL AN INFORMATIONSERVICES CONCERN SAID THE CONTRACT WOULD COVER AN ESTIMATED 1 BILLION IN CREDITCARD SALES VOLUME FIRST FINANCIAL WOULDN'T DISCLOSE THE VALUE OF THE CONTRACT 9308120082 930812 AIRTRAN'S UNIT TRAFFIC IN JULY MINNEAPOLIS AIRTRAN CORP'S MESABA AVIATION UNIT SAID JULY TRAFFIC DECLINED 41 TO 28 MILLION REVENUE PASSENGER MILES FROM 292 MILLION A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE REGIONAL AIRLINE SAID ITS LOAD FACTOR OR PERCENTAGE OF SEATS FILLED TUMBLED TO 474 FROM THE YEARAGO PERIOD'S 646 MESABA A FEEDER LINE FOR WINGS HOLDINGS INC'S NORTHWEST AIRLINES UNIT SAID THE RESULTS REFLECTED THE ECONOMY AND ONGOING MEDIA COVERAGE OF NORTHWEST'S FINANCIAL CONDITION AT THE SAME TIME IT SAID TRAFFIC GROWTH AND CAPACITY MOVED OUT OF ALIGNMENT BECAUSE MESABA TOOK DELIVERY OF EARLIERORDERED AIRCRAFT 9308120081 930812 WHO'S NEWS TAG HEUER TAG HEUER MARIN SWITZERLAND PAMELA FIELDS 39 YEARS OLD RESIGNED AS PRESIDENT OF HEUER TIME & ELECTRONICS CORP THE US SUBSIDIARY OF THIS WATCH MAKER SHE WILL BECOME VICE CHAIRMAN OF CABOT LABORATORIES A NEW YORK COSMETICS AND TOILETRIES COMPANY LUC PERRAMOND 31 DIRECTOR OF TAG HEUER'S INTERNATIONAL SUBSIDIARIES WILL SERVE AS PRESIDENT OF THE UNIT UNTIL A SUCCESSOR IS NAMED 9308120080 930812 FINANCING BUSINESS ROYAL GRIP INC ROYAL GRIP INC SCOTTSDALE ARIZ FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF ONE MILLION COMMON SHARES AT AN ESTIMATED PRICE OF 9 TO 11 APIECE OF THE TOTAL 800000 NEW SHARES ARE BEING OFFERED BY THE COMPANY AND 200000 BY SELLING SHAREHOLDERS THE MAKER OF GOLF CLUB GRIPS CURRENTLY HAS 17 MILLION SHARES OUTSTANDING THE OFFERING WILL BE MADE THROUGH AN UNDERWRITING GROUP LED BY WILLIAM BLAIR & CO PROCEEDS WILL BE USED FOR A DISTRIBUTION TO CURRENT SHAREHOLDERS AND FOR GENERAL CORPORATE PURPOSES ROYAL GRIP SAID 9308120079 930812 INTERNATIONAL BANK OF FRANCE CAUTIOUSLY CUTS INTEREST RATES BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT THE BANK OF FRANCE HAS BEGUN CAUTIOUSLY LOWERING INTEREST RATES IN WHAT COULD BE A MODEL FOR OTHER CENTRAL BANKS SEEKING TO STIMULATE ECONOMIC RECOVERY WITHOUT CAPSIZING EUROPE'S LISTING CURRENCY SYSTEM SEPARATELY GERMAN FINANCE MINISTER THEO WAIGEL WOULDN'T RULE OUT THAT EUROPE'S CURRENCY WOES COULD DELAY MONETARY UNION UNDER THE MAASTRICHT TREATY SIMILAR REMARKS BY CHANCELLOR HELMUT KOHL MONDAY PROMPTED PARIS TO WORRY THAT BONN WANTS TO DELAY EUROPEAN ECONOMIC UNITY WHICH GERMAN OFFICIALS DENIED THE BANK OF FRANCE YESTERDAY TRIMMED THE INTEREST RATE ON 24HOUR FUNDS FOR BANKS FOR THE SECOND TIME THIS WEEK THE NEW 925 RATE WAS DOWN A HALFPERCENTAGE POINT FROM 975 SET MONDAY WHEN THE RATE HAD BEEN CUT FROM 10 FRANCE HASN'T TOUCHED ITS MORE IMPORTANT RATE ON 5TO10DAY SECURITIES REPURCHASE AGREEMENTS WHICH REMAINS AT 10 KEEPING THE CHIEF REFERENCE FOR SHORTTERM MONEY MARKETS HIGH FRANCE IS BEING VERY CAUTIOUS YOU ARE GETTING A GRADUAL UNWINDING BUT YOU HAVEN'T RETURNED TO THE LEVELS OF LATE JUNE SAID WARREN OLIVER EUROPEAN ECONOMIST AT SG WARBURG SECURITIES IN LONDON REFERRING TO INCREASES IN INTEREST RATES IN JULY TO HELP DEFEND CURRENCIES IN THE OLD TIGHTER TRADING MARGINS UNDER THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM THE BAND OR TRADING RANGE WITHIN WHICH EUROPEAN CURRENCIES IN THE ERM ARE ALLOWED TO FLUCTUATE WAS EASED LAST MONTH AFTER CURRENCIES CAME UNDER HEAVY SPECULATIVE PRESSURE BUT MANY ECONOMISTS SAY THAT MORE SIGNIFICANT FRENCH CUTS COULD SOON FOLLOW IF THE FRANC CONTINUES TO HOLDS ITS OWN IN CURRENCY MARKETS LEADING TO FURTHER EUROPEAN INTERESTRATE REDUCTIONS IN COMING WEEKS THE NEW LOGIC TAKING HOLD IN FOREIGNEXHANGE MARKETS SUGGESTS THAT IN THE MEDIUMTERM A CURRENCY NOW HAS MORE TO LOSE FROM HIGHER INTEREST RATES THAN LOWER RATES NEEDED TO REVIVE EUROPEAN ECONOMIES THE THINKING IS THAT THE LONGER FRANCE AND OTHER CENTRAL BANKS DELAY MONETARY EASING THE DEEPER THEIR ECONOMIES WILL FALL INTO RECESSION EARLY EVIDENCE BACKS UP THE THEORY THE FRANC FIRMED AGAINST THE MARK ON THE FRENCH RATE NEWS STRENGTHENING TO A EUROPEAN CLOSE OF 35138 FRANCS TO THE MARK FROM 35252 FRANCS LATE TUESDAY IT IS INTERESTING THAT THE FRENCH FRANC RECOVERED A LITTLE BIT IF THE MARKET PERCEIVES THAT CHANCES OF HELPING THE ECONOMY ARE BETTER WITH LOWER RATES IT WOULD HELP THE FRANC MORE THAN HIGH INTEREST RATES SAID ROBIN MARSHALL CHIEF ECONOMIST FOR CHASE INVESTMENT BANK IN LONDON HE WARNED THAT TOO MUCH CAUTION CAN BE SELFDEFEATING BY FORCING AN EVEN DEEPER RECESSION AS WELL AS A CRIPPLED CURRENCY HE SAID EUROPE'S CENTRAL BANKS ARE STILL STRUGGLING WITH OLD NOTIONS OF DEFENDING THEIR CURRENCY LEVELS WITH THE MARK BUT THAT A REALISM IS EMERGING THAT SUGGESTS THAT BOTH CURRENCIES AND ECONOMIES CAN BENEFIT FROM MORE DECISIVE CUTS IN RATES THE SOONER THE BETTER 9308120078 930812 RETAILING GAP'S NEW LINE GOES BEYOND THE BASICS BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL FAMOUS FOR ITS JEANS AND TSHIRTS AND NOT MUCH ELSE GAP INC IS NOW OUT TO CONVINCE CONSUMERS THAT THE GAP LOOK ALSO ENCOMPASSES STRETCH PANTS AND LEATHER VESTS THE ONCEINVINCIBLE COMPANY DOESN'T HAVE MUCH CHOICE COMPETITORS HAVE COPIED ITS BASIC LOOK AND ARE SELLING THE KNOCKOFFS CHEAPER CONSUMERS PARTICULARLY WOMEN GREW TIRED OF GAP'S BOXY UNISEX LOOK AND STARTED GOING ELSEWHERE FOR MORE FEMININE STYLES LAST YEAR WAS THE FIRST TIME GAP'S PROFIT DECLINED SINCE 1984 TO SHORE UP SLIPPING PROFIT MARGINS THE SAN FRANCISCOBASED SPECIALTY RETAILER IS AGGRESSIVELY PILING MORE FASHIONABLE HIGHERPRICED CLOTHING INTO ITS STORES WE CAN'T AFFORD NOT TO CHANGE SAID PRESIDENT MILLARD MICKEY DREXLER IN AN INTERVIEW YESTERDAY THE COMPANY IS EXPECTED TO REPORT TODAY THAT FISCAL SECONDQUARTER EARNINGS FELL 27 TO ABOUT 19 CENTS A SHARE IN THE YEAREARLIER PERIOD ENDED AUG 1 GAP POSTED EARNINGS OF 377 MILLION OR 26 CENTS A SHARE ON SALES OF 6141 MILLION THE STOCK WHICH TRADED AS HIGH AS 59125 A SHARE IN JANUARY 1992 CLOSED YESTERDAY AT 30 A SHARE UP 75 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MR DREXLER'S ORIGINAL CONCEPT SELLING A FEW SIMPLE ITEMS OF WELLMADE CLOTHING AT NOTSOCHEAP PRICES IN AN ATTRACTIVE SETTING WORKED FOR SIX YEARS EARNING HIM KUDOS FOR MAKING GAP A UBIQUITOUS BRAND BUT THE STRATEGY ALSO WORKED THANKS TO SLOW COMPETITORS CONSUMERS' DESIRE FOR BLAND GARB AND MOST IMPORTANTLY A POWERFUL CACHET AND IMAGE SHARP BLACKANDWHITE ADS FEATURING HIP STARS LIKE LENNY KRAVITZ AND WINONA RYDER IN JEANS AND TSHIRTS HELPED SELL THE IDEA THAT GAP CLOTHES WERE COOL THINGS STARTED TO SOUR LAST YEAR COMPETITION FROM RETAILERS SUCH AS JC PENNEY INC AND KMART CORP SELLING BASICS FOR LESS FORCED GAP TO CUT PRICES CONSUMERS GOT BORED GAP IS NOT DOING ANYTHING EXCLUSIVE THAT THEY CAN BRAG ABOUT ANYMORE SAYS KURT BARNARD PUBLISHER OF RETAIL MARKETING REPORT BASICS STILL OCCUPY ABOUT HALF THE SPACE IN GAP'S 828 US STORES SOMETIMES YOU DO THINGS A LITTLE LONGER THAN YOU SHOULD SAYS MR DREXLER MAYBE WE WEREN'T MOVING QUICKLY ENOUGH BECAUSE GAP INVENTORY TAKES ABOUT NINE MONTHS TO GET THROUGH THE PIPELINE AND INTO THE STORES THE RETAILER COULDN'T BEGIN ITS FASHION STRATEGY UNTIL NOW WITH THE CURRENT FALL LINE MR DREXLER SAYS HE HOPES THE NEW DUDS WILL REINVIGORATE SALES WHILE OLDSTYLE DENIM AND RUGBY SHIRTS HAVE A CERTAIN GUARANTEED AUDIENCE SOME ITEMS IN GAP'S CURRENT FALL LINE SUCH AS RIBBED SLEEVELESS TURTLENECKS ARE MUCH LESS CERTAIN TO SELL FASHION ITEMS TURN OVER MORE QUICKLY AND SELL AT A HIGHER MARGIN IF YOU'RE RIGHT ABOUT THE PRODUCTS MR DREXLER ALLOWS WE'RE GOING TO MAKE MISTAKES HE SAYS BUT WE HAVE A REASONABLY GOOD RECORD IN FIGURING THESE THINGS OUT IF HE IS WRONG THOSE ITEMS WILL HAVE TO BE MARKED DOWN AND WILL DRAG DOWN PROFITS BUT CUTTING PRICES ON BASICS TO COMPETE WITH DISCOUNTERS SUCH AS KMART WASN'T WORKING EITHER THE CHALLENGE IS ESPECIALLY ACUTE FOR GAP BECAUSE IT MUST ATTRACT OLDER SHOPPERS AS WELL AS TEENS GAP'S GOT TO BE THE ELTON JOHN OF APPAREL SHARP ENOUGH TO APPEAL TO ALL AGE GROUPS SAYS ROGER BLACKWELL A COLUMBUS OHIO RETAIL CONSULTANT IN TRYING TO FIND ITS WAY GAP IS DOING MANY THINGS THAT AREN'T VERY GAPLIKE ITS ADVERTISEMENTS FEATURE MORE THAN JUST BASICS IT IS REACHING OUT TO THE LOWEND CONSUMER BY TESTING A WAREHOUSE CONCEPT WITH LOWERPRICED LINES OF CLOTHING THAT DEVIATE FROM THE GAP'S ALLCOTTON LOOK BY INCLUDING SOME POLYESTER BLENDS AND GAP IS LOOKING TO EXPAND OVERSEAS THE COMPANY'S NEW MAGAZINE ADS FEATURE COLOR PHOTOGRAPHS OF WAIFLIKE MODELS WEARING ITS FORMFITTING TOPS A FAR CRY FROM ITS BLACKANDWHITE ADS FEATURING FAMOUS PEOPLE IN BASIC CLOTHES WE'VE GOT TO COMMUNICATE MORE EFFECTIVELY TO LET PEOPLE KNOW THAT THERE'S MORE IN THE STORES THAN JUST THE PREDICTABLE ITEMS MR DREXLER SAYS HE SAYS GAP HAS HIRED WIEDEN & KENNEDY OF PORTLAND ORE TO CREATE A TELEVISION ADVERTISING CAMPAIGN THAT GAP WILL TEST IN A FEW MARKETS THIS HOLIDAY SEASON CRITICS PANNED GAP'S ATTEMPT AT TV COMMERCIALS LAST YEAR AS BEING TOO AVANTGARDE FOR THE RETAILER'S ALLAMERICAN SHOPPERS MR DREXLER SAYS HE CAN'T COMMENT ON THE NEW COMMERCIALS BECAUSE HE HASN'T YET SEEN THEM GAP ALSO HOPES TO CUT COSTS ROBERT FISHER EXECUTIVE VICE PRESIDENT CHIEF FINANCIAL OFFICER AND SON OF GAP'S CHAIRMAN AND FOUNDER DONALD FISHER SAYS THAT AMONG OTHER THINGS GAP IS TRYING TO USE FEWER VENDORS DO MORE MANUFACTURING IN LOWCOST COUNTRIES SUCH AS MEXICO AND DISPLAY CLOTHING IN SUCH A WAY THAT THE STORES DON'T NEED TO CARRY SO MANY ITEMS AT ONCE TO MAKE THEM LOOK FULLY STOCKED IN ADDITION GAP IS TESTING THE WAREHOUSE CONCEPT AT 48 OF ITS LEAST PROFITABLE STORES BOTH TO TURN THE STORES AROUND AND TO REACH OUT TO COSTCONSCIOUS CONSUMERS WHO AREN'T CURRENT CUSTOMERS RATHER THAN DISCOUNTING ITS REGULAR LINE OF CLOTHES GAP HAS ROLLED OUT INEXPENSIVE NEW LINES OF LOWERQUALITY APPAREL BECAUSE THE WAREHOUSE IDEA HAS ONLY BEEN IN PLACE FOR ABOUT A WEEK MR DREXLER SAYS IT IS PREMATURE TO SAY WHETHER GAP WILL EXPAND THE CONCEPT AS SALES SLOW IN THE US GAP IS TAKING TENTATIVE STEPS TO EXPAND ITS 39STORE PRESENCE OVERSEAS ALTHOUGH IT WON'T DISCLOSE SPECIFIC PLANS CURRENTLY NEARLY ALL THE STORES ARE IN ENGLAND AND MR FISHER SAYS GAP WILL MOVE SLOWLY IN ITS INTERNATIONAL EXPANSION BECAUSE THERE ARE MANY HURDLES IT TOOK 20 YEARS TO GET GAP WHERE IT IS TODAY MR FISHER SAYS IT'S PUSHING IT TO EXPECT THE SAME THING IN JAPAN IN FIVE YEARS 9308120077 930812 WHO'S NEWS CONTINENTAL CORP CONTINENTAL CORP NEW YORK CARL CASTOLDI 45 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THE DOMESTIC OPERATION OF THIS INSURER'S AGENCY AND BROKERAGE GROUP HE SUCCEEDS THE LATE DONALD SCRUGGS MR CASTOLDI WAS MOST RECENTLY WESTERN ZONE MANAGER 9308120076 930812 WHO'S NEWS BANKAMERICA CORP BANKAMERICA CORP SAN FRANCISCO JOHN O WILSON CHIEF ECONOMIST OF THE BANK OF AMERICA UNIT WAS NAMED EXECUTIVE VICE PRESIDENT OF THE UNIT DR WILSON 55 IS RESPONSIBLE FOR GLOBAL FORECASTING OF ECONOMIC AND FINANCIAL CONDITIONS AFFECTING BANK OF AMERICA 9308120075 930812 WHO'S NEWS HUGHES SUPPLY INC HUGHES SUPPLY INC ORLANDO FLA DONALD C MARTIN WAS NAMED A DIRECTOR OF THIS DISTRIBUTOR OF PLUMBING AND ELECTRICAL SUPPLIES EXPANDING BOARD MEMBERSHIP TO EIGHT MR MARTIN 57 YEARS OLD IS CHAIRMAN OF ELECTRICAL DISTRIBUTORS INC AN ATLANTABASED COMPANY HUGHES AGREED TO ACQUIRE LAST MONTH 9308120074 930812 INDUSTRY FOCUS EXCESS RAIL CAPACITY COULD DRY UP WITH FLOOD WATERS ABANDONING SOME WASHEDOUT TRACK WOULD REDUCE COSTS EXECUTIVES SAY BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL FOR THE NATION'S RAILROADS THERE MAY BE A SILVER LINING TO THE CLOUDS THAT BROUGHT HEAVY RAINS AND FLOODS TO THE MIDWEST THE FLOODING WIPED OUT SEVERAL HUNDRED MILES OF TRACK AND CREATED MORE THAN 200 MILLION OF EXTRA COSTS FOR THE RAILROADS BUT IN DOING SO IT POTENTIALLY COULD REDUCE EXCESS CAPACITY SEVERAL INDUSTRY EXECUTIVES SAY THEY NOTE THAT RAILROADS COULD CUT COSTS AND GAIN EFFICIENCY BY SIMPLY ABANDONING PARTS OF THE WASHEDOUT TRACK AND SHARING SOME OF THE GOOD TRACK THAT REMAINS THAT IN TURN MIGHT HELP THE RAILROADS COMPETE WITH TRUCKS IF THERE IS ONE POSITIVE THAT MIGHT COME OUT OF THIS IT COULD BE RAILROADS' BECOMING MORE COMPETITIVE BY REDUCING UNNECESSARY TRACKAGE SAYS JOHN REBENSDORF VICE PRESIDENT STRATEGIC PLANNING OF UNION PACIFIC CORP'S UNION PACIFIC RAILROAD CO SUCH CAPACITYSHARING ARRANGEMENTS WOULD SUIT WALL STREET FINE THIS IS LIKE A GODORDERED DEMONSTRATION PROJECT OF HOW RAILROADS CAN UTILIZE CAPACITY MUCH BETTER SAYS ANDRAS PETERY A RAIL ANALYST AT MORGAN STANLEY & CO BUT WHILE THE PROSPECT IS TEMPTING IT IS ALSO AGONIZING FOR RAILROADS NOT RESTORING OUR RAILROAD WOULD BREAK FAITH WITH COMMUNITIES PUT A LOT OF EMPLOYEES ON THE STREET AND CUT OFF LOCAL SHIPPERS FROM RAIL SERVICE SAYS REILLY MCCARREN PRESIDENT OF GATEWAY WESTERN RAILWAY CO BASED IN FAIRVIEW HEIGHTS ILL THE REGIONAL RAILROAD HAS LOST ITS KANSAS CITYEAST ST LOUIS MAINLINE AT GLASGOW MO BECAUSE OF THE FLOODING OF THE MISSOURI RIVER RAILROADS HAD ALREADY BEEN TRIMMING SWATCHES OF RAILS BEFORE THE GREAT MIDWEST FLOODING IN RECENT YEARS MANY PLOWED CAPITAL THAT THEY PREVIOUSLY WOULD HAVE INVESTED IN LIGHTER DENSITY LINES BACK INTO THEIR HEAVYDENSITY CORE RAIL SYSTEMS AND ONE OF THEIR STRATEGIES TO REDUCE EXCESS MILEAGE HAS BEEN THE SHARED USE OF TRACKAGE ALTHOUGH SOME RECENT ARRANGEMENTS EXTEND THE TERRITORIAL REACH OF A RAILROAD THROUGH SHARED TRACKS INSTEAD OF CONSOLIDATING PARALLEL ROUTES RAIL EXECUTIVES SAY THE CLOSE COOPERATION THEY DEMONSTRATED IN REROUTING MORE THAN 1000 FREIGHT TRAINS FROM FLOODED AREAS BODES WELL FOR REACHING FUTURE TRACKSHARING ARRANGEMENTS IN OTHER PARTS OF THE COUNTRY THE FLOODS HAVE BROUGHT SOME OF THE RAILROADS CLOSER TOGETHER AND OPENED OUR EYES TO POTENTIAL OPPORTUNITIES SAYS RUSSELL HAGBERG VICE PRESIDENT OF TRANSPORTATION OF SANTA FE RAILWAY A UNIT OF SANTA FE PACIFIC CORP THE COMPANY RECENTLY REOPENED ITS BUSY HIGHSPEED RAIL ROUTE FROM CHICAGO TO LOS ANGELES PARTS OF THE ROUTE HAD BEEN CLOSED BY FLOODING IN MISSOURI KANSAS AND ILLINOIS NOBODY WANTS TO TALK ON THE RECORD ABOUT WHAT TRACK COULD BE ABANDONED RAIL EXECUTIVES SAY SUCH TALK IS PREMATURE BECAUSE MANY STRETCHES OF TRACK ARE STILL UNDER WATER AND IT IS IMPOSSIBLE TO DETERMINE THE COST OF RESTORATION BUT SOME SAY PRIVATELY THAT CANDIDATES MIGHT INCLUDE PARTS OF A LINE OWNED BY BURLINGTON NORTHERN INC FROM ST LOUIS TOWARD MEMPHIS PORTIONS OF THAT LINE WHICH ARE ADJACENT TO THE MISSISSIPPI RIVER HAVE BEEN FLOODED FOR WEEKS BURLINGTON NORTHERN COULD REROUTE TRAINS OVER THE UNION PACIFIC WHICH WILL RESTORE ITS DOUBLETRACK MAINLINE ON THE EAST SIDE OF THE MISSISSIPPI WHEN THE WATERS RECEDE PART OF BURLINGTON NORTHERN'S LINE FROM KANSAS CITY EAST TO CHICAGO ALSO HAS BEEN FLOODED TRAFFIC CARRIED ON THAT LINE COULD BE REROUTED OVER NEARBY ROUTES OWNED BY EITHER SANTA FE PACIFIC OR NORFOLK SOUTHERN CORP SOME RAILROAD EXECUTIVES SUGGEST THE NORFOLK SOUTHERN LINE HAS BEEN FLOODED IN PLACES BUT IS BEING REBUILT NOT EVERYONE IN THE INDUSTRY THINKS THESE ARE LIKELY POSSIBILITIES HOWEVER AND A BURLINGTON NORTHERN SPOKESMAN SAYS WE DON'T COMMENT ON SPECULATION ANOTHER COMPANY CANADIAN PACIFIC LTD SUFFERED SEVERE DAMAGE ON THE CHICAGO TO KANSAS CITY ROUTE OF ITS SOO LINE RAILROAD UNIT THE COMPANY COULD SAVE SUBSTANTIAL REHABILITATION COSTS BY SEEKING ALTERNATIVE ARRANGEMENTS WITH SANTA FE RAILWAY OR BURLINGTON NORTHERN BUT INDUSTRY EXECUTIVES IN GENERAL ARE STILL TRYING TO DETERMINE WHICH LINES TO RESTORE AND WHICH TO CUT AND THE BURLINGTON NORTHERN ROUTE THAT CANADIAN PACIFIC COULD USE IS THE VERY ONE THAT IS ITSELF SUBJECT TO SPECULATION ABOUT POSSIBLE ELIMINATION AS FOR CANADIAN PACIFIC CONRAD WENCKA CHIEF TRANSPORTATION OFFICER OF THE COMPANY'S US RAIL UNIT SAYS WE DID ENTERTAIN ALTERNATE ROUTES TO KANSAS CITY FROM CHICAGO WHEN WE REALIZED THE COST TO REPAIR THE LINE HOWEVER FOR NOW WE HAVE DECIDED TO REBUILD AND RETAIN OUR OWN ROUTE OTHER CANDIDATES COULD INCLUDE CERTAIN UNION PACIFIC BRANCH LINES WHICH SUSTAINED FLOOD DAMAGE AND WOULD BE COSTLY TO RESTORE A UNION PACIFIC REPRESENTATIVE CONFIRMS THE RAILROAD WAS LOOKING AT OPTIONS TO PRESERVE SERVICE WHILE AVOIDING UNNECESSARY REHABILITATION COSTS MR MCCARREN OF GATEWAY WESTERN SAYS THE COMPANY'S TOP PRIORITY IS TO RAISE THE MORE THAN 7 MILLION TO RESTORE ITS MAINLINE THE COMPANY IS SEEKING FEDERAL FLOODRELIEF MONEY BUT IF FUNDS AREN'T AVAILABLE GATEWAY WOULD BE FORCED TO LOOK AT OTHER OPTIONS TO CONTINUE SERVICE TO KANSAS CITY HE SAYS FOR INSTANCE THE COMPANY COULD INVESTIGATE THE AVAILABILITY OF TRACKAGE RIGHTS OVER NORFOLK SOUTHERN BETWEEN MEXICO MO AND KANSAS CITY MO UNDER TRACKAGE RIGHTS ONE RAILROAD GRANTS ANOTHER THE RIGHT TO OPERATE OVER ITS TRACKS BETWEEN TWO POINTS SUCH AN ARRANGEMENT WOULD BYPASS GATEWAY WESTERN'S WASHEDOUT MISSOURI RIVER CROSSING BUT THE MOVE WOULD LEAVE A COUPLE OF DOZEN COMMUNITIES WITHOUT ANY RAIL SERVICE YOU HAVE A WHOLE SECTION OF MISSOURI THAT IS STRUGGLING AND THE LAST THING THEY NEED RIGHT NOW IS TO LOSE THEIR RAILROAD BECAUSE OF A FLOOD SAYS MR MCCARREN HE SAYS ABANDONING ITS LINE WOULD REDUCE THE RAILROAD'S REVENUE BY SEVERAL MILLION DOLLARS A YEAR A TRACKAGERIGHTS ARRANGEMENT WITH ANOTHER RAILROAD ALSO WOULD LIKELY BE MORE EXPENSIVE THAN OPERATING ON THE RAILROAD'S OWN LINE HE ADDS RAILROADS HAVE A LONG TRADITION OF INTENSE COMPETITION WITH EACH OTHER AND ARE RELUCTANT TO SURRENDER THE CONTROL OF THEIR FREIGHT TRAINS TO THE DISPATCHERS OF ANOTHER RAILROAD SAYS ROBERT BANKS PRESIDENT OF RL BANKS & ASSOCIATES INC A RANSPORTATION CONSULTING FIRM IN WASHINGTON SUCH TRACKSHARING ARRANGEMENTS OFTEN LEAD TO DISPUTES OVER ALLOCATION OF CAPITAL REQUIREMENTS AND ACCESS TO CUSTOMERS NEVERTHELESS RAILROADS HAVE LATELY SHOWN MORE WILLINGNESS TO WORK TOGETHER TO CUT COSTS AND IMPROVE SERVICE THROUGH TRACKAGE RIGHTS OR HAULAGE ARRANGEMENTS UNDER HAULAGE ARRANGMENTS ONE RAILROAD HAULS ANOTHER'S CARS BETWEEN TWO POINTS AMONG THE MOST RECENT HAULAGE AGREEMENTS IS ONE BETWEEN SANTA FE AND BURLINGTON NORTHERN ON FREIGHT BUSINESS BETWEEN THE WEST COAST AND SOUTHEAST SANTA FE TENDERS TRAINS TO BURLINGTON NORTHERN AT AVARD OKLA WHERE BURLINGTON NORTHERN CREWS MOVE THE TRAINS OVER THE COMPANY'S TRACKS TO BIRMINGHAM ALA 9308120073 930812 STATE BARS MERRILL LYNCH LAZARD FRERES FROM 2 JOBS BOSTON MASSACHUSETTS EXCLUDED MERRILL LYNCH & CO AND LAZARD FRERES & CO FROM A 500 MILLION BOND REFUNDING AND A SMALLER WATERPOLLUTION TRUST REFINANCING IN OCTOBER BECAUSE THE FIRMS DIDN'T DISCLOSE A CONTROVERSIAL CONTRACT BETWEEN THEM THE FIRMS HAD BEEN EXCLUDED PENDING THEIR EXPLANATIONS OF THEIR DISCLOSURE FAILINGS STATE TREASURER JOSEPH MALONE SAID THAT WHILE THEY MAY HAVE IN A VERY TECHNICAL SENSE BEEN WITHIN OUR PARAMETERS THEY CERTAINLY COULD HAVE DONE MORE TO ABIDE BY THE SPIRIT OF STATE REGULATIONS HE SAID BOTH FIRMS ARE EXPECTED TO BID ON SUBSEQUENT DEALS THE TWO FIRMS HAD AN UNDISCLOSED AGREEMENT UNDER WHICH MERRILL PAID AT LEAST 28 MILLION TO LAZARD'S BOSTON OFFICE HEADED BY MARK S FERBER DURING A PERIOD WHEN LAZARD AND MR FERBER PROVIDED UNDERWRITNG ADVICE TO THE MASSACHUSETTS WATER RESOURCES AUTHORITY MERRILL IS ONE OF THE WATER AGENCY'S LEAD UNDERWRITERS 9308120072 930812 LETTERS TO THE EDITOR LET'S START WORKING ON THE RAILROADS YOUR JUNE 29 PAGEONE ARTICLE EMPTY SEATS NOT ONLY FAILS TO USE VALID METHODOLOGY TO SUPPORT ITS PATENTLY FALSE ASSERTION THAT RAIL TRANSIT SYSTEMS ARE NOT COSTEFFECTIVE BUT IT ALSO RESORTS TO A RATHER UNPROFESSIONAL ASSERTION THAT PROPOSALS FOR NEW RAIL STARTS ARE THE RESULT OF NOSTALGIA AND MUNICIPAL EGOS THE PICKRELL REPORT CITED IN THE ARTICLE USES FUNDAMENTALLY FLAWED METHODOLOGY THAT IGNORES MANY FUNDAMENTAL PRINCIPLES OF STATISTICS AND MATHEMATICS MOST DISTURBINGLY MANY OF THE COST AND RIDERSHIP FIGURES CONTAINED IN THE REPORT ARE DEMONSTRABLY UNTRUE RAIL TRANSIT IS IN MANY CASES THE MOST COSTEFFECTIVE SOLUTION TO URBAN TRANSPORTATION PROBLEMS MORE IMPORTANT RAIL TRANSIT IS A VALUABLE LANDUSE PLANNING TOOL THAT CAN REDIRECT DEVELOPMENT TO ESTABLISHED AREAS WHILE LIMITING SUBURBAN SPRAWL TRANSPORTATION IS ONE OF THE STRONGEST FACTORS INFLUENCING URBAN FORM TRANSPORTATION POLICIES THAT ARE OVERLY WEIGHTED TOWARD THE AUTO ENCOURAGE SUBURBAN SPRAWL WHILE EFFECTIVE MASS TRANSIT SYSTEMS ENCOURAGE CONCENTRATED DEVELOPMENT IN CENTRAL AREAS THE TRANSPORTATION POLICIES OF THE PAST SEVERAL DECADES HAVE SIMPLY FAILED AND WE MUST BEGIN BALANCING OUR TRANSPORTATION SYSTEMS WITH A GREATER EMPHASIS ON MASS TRANSIT HERE IN LOS ANGELES THE FIRST RAIL TRANSIT LINE OF A PLANNED 400MILE SYSTEM IS BREAKING RIDERSHIP RECORDS RAIL LINES ARE PART OF A COMPREHENSIVE NETWORK OF HIGHWAY BUS AND OTHER SYSTEMS DESIGNED TO ENCOURAGE SINGLEOCCUPANT DRIVERS TO CHANGE THEIR HABITS A VARIETY OF TRANSPORTATION FORMS CAN WORK IN CONCERT TO COMBAT TRAFFIC CONGESTION HELP IMPROVE AIR QUALITY AND ENHANCE THE OVERALL QUALITY OF LIFE IN LOS ANGELES RESIDENTS ARE WILLING AND READY TO GET OUT OF THEIR CARS AND OFF THE FREEWAYS WE EXPECT THIS TREND TO CONTINUE AS RAIL AND BUS SERVICE EXPANDS IN THE FUTURE DESPITE BEING IGNORED BY PLANNERS AND ACTUALLY SHUNNED BY MANY SUBURBAN COMMUNITIES THAT REFUSE TO EVEN PERMIT BUSES TO RUN ON THEIR STREETS PUBLIC TRANSPORTATION AUTHORITIES THROUGHOUT THE COUNTRY ARE ATTEMPTING TO MEET TODAY'S TRAVEL NEEDS FOR EXAMPLE WE ARE TRYING TO GET PEOPLE FROM DIFFICULTTOSERVE RESIDENTIAL AREAS TO OUR RAIL LINES BUT THAT'S SIMPLY AN ATTEMPT TO RETROFIT TRANSIT TO THE SUBURBAN MARKET A REAL SOLUTION INVOLVES WORKING WITH COMMUNITIES AND PLANNERS TO ENCOURAGE A RETURN TO SENSIBLE TRANSITINCLUSIVE PLANNING ENCOURAGING HIGHER DENSITY DEVELOPMENT ALONG RAIL LINES WILL REDUCE AUTO DEPENDENCE IMPROVE MOBILITY CONSERVE ENERGY AND PRESERVE OPEN SPACE HOME RULE EVERY COMMUNITY'S RIGHT TO CONTROL LOCAL DEVELOPMENT MAXIMIZE LOCAL ECONOMIC RETURNS AND IGNORE THE COSTLY REGIONAL CONSEQUENCES OF ACTING IN NARROW INTERESTS REMAINS AN OBSTACLE TO MAXIMIZING TRANSIT'S USEFULNESS HOWEVER THE 1991 PASSAGE OF FEDERAL LEGISLATION MANDATING FOR THE FIRST TIME REGIONAL PLANNING IN ADDRESSING TRANSPORTATION ISSUES MAY ENABLE US TO BEGIN TO OVERCOME LONGSTANDING IMPEDIMENTS IT IS IMPORTANT TO REMEMBER THAT TRANSPORTATION PATTERNS ARE NOT NATURAL PHENOMENA THEY ARE CREATED BY PRIVATE DEVELOPERS AND PUBLIC OFFICIALS IF TRANSIT CONTINUES TO BE LEFT OUT OF PLANNING PROCESSES RIDERSHIP WILL NO DOUBT CONTINUE TO DECLINE WHILE CONGESTION AND AIR POLLUTION WILL SURELY WORSEN AND AT THE VERY BEST ONE CAN EXPECT ONLY LIMITED RELIEF IF TRANSIT OPERATORS ARE APPEALED TO ONLY AFTER LANDUSE DECISIONS HAVE BEEN MADE OVER THE PAST SEVERAL DECADES PROGRESS HAS BEEN EQUATED WITH UNRESTRICTED GROWTH AND IMPROVED MOBILITY HAS BECOME EQUATED WITH AUTOMOBILE USE IF REAL PROGRESS AND GENUINELY IMPROVED MOBILITY ARE TO BE ENJOYED IN THE FUTURE THOSE EQUATIONS MUST BE REEVALUATED AND TRANSIT MUST BE RECOGNIZED IN PLANNING'S EARLIEST STAGES AS PART OF THE SOLUTION YOU SHOWED AN EMPTY UNDERSTANDING OF THE FULL RANGE OF BENEFITS THAT RAIL DELIVERS TO METROPOLITAN AREAS TRANSIT INVESTMENTS CARRY REAL ECONOMIC PUNCH AS CITED BY NEW YORK'S REGIONAL PLAN ASSOCIATION IT CONCLUDED THAT RAIL TRANSIT IS WORKING BECAUSE IT IS RESHAPING METROPOLITAN AREAS ATTRACTING BUSINESS AND RESIDENTIAL SUBCENTERS AROUND RAIL STOPS AND INCREASING JOBS AND SERVICES IN DOWNTOWNS FOR EXAMPLE 15 BILLION IN PRIVATE DEVELOPMENT HAS ACCOMPANIED WASHINGTON'S METRORAIL SYSTEM IN 1972 PORTLAND'S DOWNTOWN AIR WAS SO DIRTY THAT IT VIOLATED FEDERAL HEALTH STANDARDS ON ONE OUT OF EVERY THREE DAYS TODAY WITH THE POPULAR LIGHT RAIL SYSTEM CARRYING 25000 RIDERS PER WEEKDAY THERE ARE NO VIOLATIONS EXPANSION AND USE OF RAIL TRANSIT IS THE SECRET TO CURBING URBAN TRAFFIC CONGESTION ESTIMATED TO BE COSTING DRIVERS 40 BILLION OF LOST TIME A YEAR IT'S A FACT THAT A SUBWAY TRAIN FULL OF COMMUTERS MEANS 900 FEWER CARS ON THE ROAD IF THERE IS A SINGLE FACTOR HAMPERING THE GROWTH OF TRANSIT RIDERSHIP THESE DAYS IT IS THE WEAK ECONOMY SINCE MOST PEOPLE USE TRANSIT TO GO TO WORK HIGH JOBLESSNESS RATES IN CITIES TAKE THEIR TOLL ON PATRONAGE THE ANTIDOTE INCLUDES THE 6000 NEW JOBS THAT WILL BE CREATED BY 100 MILLION IN TRANSIT INVESTMENT POUND FOR POUND DOLLAR FOR DOLLAR GALLON FOR GALLON THERE IS NO SAFER MORE EFFICIENT OR MORE ENVIRONMENTALLY FRIENDLY WAY OF MOVING FREIGHT THAN BY TRAIN MOREOVER FREIGHT RAILROADS PAY THE ENTIRE COST OF BUILDING AND MAINTAINING THEIR TRACK NETWORKS WE BELIEVE THE COUNTRY SHOULD RECOGNIZE THE BENEFITS RAILROADS BRING TO THE NATION AND ADOPT PUBLIC POLICY POSITIONS THAT ENCOURAGE ITS USE UNFORTUNATELY WE CONFRONT THE OPPOSITE SUCH AS A SENATE PROPOSAL THAT WOULD TAX RAILROADS FOR THE DIRECT BENEFIT OF ITS PRINCIPAL COMPETITION THE TRUCKS THE SENATE WOULD HAVE THE NATION'S RAILROAD AND TRUCKING INDUSTRIES PAY A TRANSPORTATION FUELS TAX OF 43 CENTS PER GALLON AND DIRECT IT TO THE NATION'S HIGHWAY TRUST FUND WHERE IT CLEARLY WOULD BENEFIT THE TRUCKING INDUSTRY AND PROVIDE NO BENEFIT TO THE RAILROADS AT ALL AND THE RAILROADS BUT NOT THE TRUCKS WOULD CONTINUE TO PAY ANOTHER TAX OF 25 CENTS PER GALLON DEDICATED TO DEFICIT REDUCTION AS AN INDUSTRY WE'RE MORE THAN HAPPY TO DO OUR SHARE BUT THIS PROPOSED POLICY TWIST IS JUST PLAIN COUNTERPRODUCTIVE TO THE NATION'S BEST INTERESTS 9308120071 930812 PLAIN TRAVEL IT AIN'T FANCY SERVICES COUNT FOR THIS TOUR AGENT NANCY STRONG HELPS VOYAGERS LIVE DREAMS IN FLORENCE AND SHOP IN HONG KONG BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS NANCY STRONG IS THE TRAVEL AGENT OF CHOICE FOR CUSTOMERS WHO SIMPLY WON'T TOLERATE BEING TREATED LIKE A PIECE OF VINYL LUGGAGE WHETHER IT'S WITH A BANK INSURANCE AGENT OR GROCERY STORE I WANT PEOPLE TO KNOW WHO RICHARD BROOKS IS AND WHAT MY TASTES ARE SAYS MR BROOKS A DALLAS FASHION DESIGNER HE ISN'T CHRISTIAN DIOR YET BUT MR BROOKS IS TREATED LIKE A KING OF FASHION WHEN MRS STRONG ARRANGES HIS ITINERARY SO ARE MANY OF HER CLIENTS SHE MAKES SURE CONCIERGES IN ITALY GREET THEM BY NAME AND BEDECK THEIR HOTEL ROOMS WITH THEIR FAVORITE FLOWERS THAT CAB DRIVERS IN HONG KONG KNOW THEIR HOBBIES AND SHOPPING TASTES AND THAT HEAD HOUSEKEEPERS IN NEW YORK SPRUCE UP THEIR ROOMS WITH A BOWL OF FRESH FRUIT MRS STRONG 58 YEARS OLD REFUSES TO LET HER CLIENTS ENDURE PASSAGE AS MERE CONFIRMATION NUMBERS MY PHILOSOPHY IS THE CUSTOMER IS KING HE'S ALSO MY PAYCHECK AND YOU MUST TAKE VERY GOOD CARE OF HIM WHEN MR BROOKS PLANNED A SIGHTSEEING TRIP TO FLORENCE RECENTLY MRS STRONG PHONED AROUND TO FIND A PICTURESQUE ITALIAN SUITE THAT FULFILLED HIS REQUEST TO RELIVE THE ROMANCE OF EM FORSTER'S NOVEL A ROOM WITH A VIEW WHAT SHE CAME UP WITH WASN'T THE TALE'S QUIET PENSIONE BUT A 300ANIGHT ROOM AT THE GRAND HOTEL OVERLOOKING THE ARNO RIVER STILL IT HELPED EVOKE A DREAMY AIR FOR MR BROOKS'S 25TH WEDDING ANNIVERSARY HE SAYS ADDING THAT ON ARRIVAL HE FOUND THE ROOM STOCKED WITH A FAVORITE WINE WITH NANCY WHAT YOU GET IS ONEONONE MR BROOKS SAYS MRS STRONG HAS LEARNED A LESSON TOO OFTEN LOST IN THIS ERA OF COMPUTERDRIVEN ORDERTAKERS MANY PEOPLE LOVE FEELING A LITTLE LIKE PLATINUM CARDCARRYING FRIENDS OF ROBIN LEACH'S EVEN IF THEY AREN'T SUCH AN ATTITUDE ISN'T ENTIRELY WITHOUT RISK MRS STRONG REMEMBERS ENDORSING A RESTAURANT TO CUSTOMERS TAKING AN OPULENT EUROPEAN JAUNT BUT WHEN THE HUNGRY TEXANS ARRIVED READY FOR A CHIC MEAL THEY FOUND A LOCKED DOOR THE RESTAURANT HAD GONE OUT OF BUSINESS A FEW DAYS EARLIER STILL HER PERSONAL TOUCHES THOUGH NOT NECESSARILY EXPENSIVE CAN MEAN A LOT TO MIDDLEINCOME CLIENTS WHOSE FIRSTCLASS FORAYS ARE RARE SHE HAS BEEN KNOWN TO WRAP A NOVEL WITH A CLIENT'S TICKETS AND TO FAX THE LATEST BASEBALL SCORES TO CUSTOMERS ON CRUISE SHIPS LAST JANUARY HER AGENCY SENT A VIDEOTAPE OF THE SUPER BOWL VIA OVERNIGHT MAIL TO A GROUP OF FOOTBALL FANS WHO WORRIED THEY WOULD MISS THE ACTION WHILE SKIING IN COLORADO TO ENSURE THAT HOTEL BELLHOPS RECOGNIZE HER CLIENTS MRS STRONG SOMETIMES FAXES PHOTOS AHEAD OF TIME CRUISE SHIP PASSENGERS WHO BOOK THROUGH MRS STRONG FIND A BOTTLE OF CHAMPAGNE IN THEIR STATEROOM WRITTEN INSTRUCTIONS FOR EVERY PORT OF CALL AND A PHOTO ALBUM INSCRIBED WITH THE AGENCY'S NAME WAITING WHEN THEY RETURN HOME ALL THIS SETS HER AGENCY SARGENT & STRONG SARGENT IS THE NAME OF A NOWPARTED FOUNDER APART IN AN INCREASINGLY COMPETITIVE TRAVEL INDUSTRY MANY SMALL OR MIDSIZE AGENCIES SUCH AS HER 12PERSON SHOP ARE BEING SQUEEZED BY BIG CHAINS WHEN THE VERY WORD TOURIST IS AT TIMES SYNONYMOUS WITH VICTIM SHE HAS BECOME SOMETHING OF A BEACON FOR ANNE HUBBARD A 58YEAROLD WIDOW WHO WANTS TO VISIT ASIA BUT IS NERVOUS ABOUT HER FIRST TRIP ABROAD MRS STRONG PLAYS SOCIAL COORDINATOR THE TRAVEL AGENT INVITES MRS HUBBARD TO HER BRICK HOUSE DIVERSELY DECORATED WITH EVERYTHING FROM OIL PAINTINGS OF THE FRONTIER AMERICAN WEST TO KNICKKNACKS FROM THAILAND AND TURKEY AND PHOTOS OF HER 10 GRANDCHILDREN CASUALLY THEY PLAN THE TRIP OVER GLASSES OF WINE AND SPRAWLED MAPS MRS STRONG ALSO INVITES OVER LAWSON AND MARY ELLEN TAYLOR A DALLAS COUPLE WHO HAPPEN TO HAVE RESERVATIONS ON A CRUISE THAT IS ONE LEG OF MRS HUBBARD'S JOURNEY WHILE THE FOUR CHAT MRS STRONG ARRANGES FOR MRS HUBBARD TO BE ACCOMPANIED BY A HONG KONG LOCAL WHO KNOWS THE WORLD OF BARGAINHUNTING THERE AND A CHAUFFEUR MRS STRONG KNOWS IN SINGAPORE MRS HUBBARD SAYS LATER THAT SHE SPENT EVERY DAY OF THE CRUISE WITH HER NEW FRIENDS THE TAYLORS SURELY LAVISH SPENDING SERVES MRS STRONG'S INTERESTS AS WELL AS THOSE OF HER CLIENTS TRAVEL AGENTS GENERALLY ARE PAID A PERCENTAGE BY THE AIRLINES AND HOTELS THEIR CLIENTS USE AT LEAST 10 OF THE TOTAL BILLS SLIGHTLY HIGHER ON CRUISES OR INTERNATIONAL TRIPS YET CLIENTS SEEM SATISFIED KATHI AND SCOTT SHUFORD OF DALLAS ARE JUST BACK FROM 10 DAYS IN ITALY FOR WHICH MRS STRONG ARRANGED SUCH GOODIES AS A 475 PRIVATE MOTORBOAT RIDE AT SUNSET ACROSS LAKE COMO A 600ANIGHT HOTEL ROOM IN ROME AND A CHAUFFEUR THERE FOR 174 FOR FOUR HOURS IN ALL THE TRIP SET THE SHUFORDS BACK ABOUT 10000 PRICEY YES BUT IT WAS 10 TIMES OUR EXPECTATIONS MRS SHUFORD SAYS MRS STRONG SAYS HER MOTIVE IS MORE THAN BIG COMMISSIONS I GET A GREAT DEAL OF SATISFACTION IN MAKING SOMEONE'S DREAM COME TRUE BUT THERE IS A VERY BUSINESSLIKE SIDE TO THE BLOND WELLGROOMED MRS STRONG FURNITURE IN HER STOREFRONT OFFICE IN A NORTH DALLAS STRIP MALL IS SECONDHAND HER AGENTS RARELY ARE PAID A SALARY MORE THAN ABOUT 25000 A YEAR ROUGHLY THE INDUSTRY AVERAGE BUT HARDLY REFLECTIVE OF THE DELUXE SERVICE MRS STRONG WORKS SO HARD TO DELIVER AND SHE IS KNOWN TO DRIVE HARD BARGAINS WITH THE AIRLINES AND HOTELS WITH WHICH SHE PLACES CLIENTS AFTER SHARPLY CRITICIZING A NEW YORK LIMOUSINE COMPANY THAT PROVIDED POOR SERVICE TO A CLIENT MRS STRONG CONCEDES I CAN BE VERY PUSHY HER OWN PROFESSIONAL VOYAGE BEGAN MUCH LIKE A CANCELED FLIGHT MRS STRONG AFTER RAISING A FAMILY TOOK HER FIRST JOB AS A TRAVEL AGENT AT AGE 41 SHE WAS FIRED ALMOST IMMEDIATELY SHE SAYS SHE REFUSED TO MAKE COFFEE SHE STARTED HER OWN AGENCY AND USED HOMESPUN GIMMICKS TO WIN CUSTOMERS SHE BAKED COOKIES FOR SECRETARIES WHO MADE TRAVEL RESERVATIONS FOR THEIR BOSSES AND VACATIONERS ABOUT TO DEPART FROM THE AIRPORT RECEIVED FROM MRS STRONG A YELLOW ROSE WITH A CARD READING MAY EVERY SIGHT BRING DELIGHT AND EVERY MILE BRING A SMILE THE SCHEMES WORKED WITH HELP FROM HER HUSBAND AND FIVE SONS MRS STRONG BUILT A 20MILLIONAYEAR REVENUE MACHINE THEN SOLD THAT TRAVEL AGENCY IN 1987 FOR ALMOST 5 MILLION SHE SAYS BUT MRS STRONG WAS AT IT AGAIN A FEW YEARS LATER BUYING AND BUILDING UP HER CURRENT SMALLER AGENCY TO 5 MILLION IN ANNUAL REVENUE SHE SAYS NOW FIRMLY ENSCONCED IN THE LUXURY NICHE OF THE TRAVEL MARKET WITH ABOUT 2700 CLIENTS MRS STRONG DOES ALMOST NONE OF THE CORPORATE BOOKINGS THAT ARE MEAT AND POTATOES TO MANY AGENCIES HER HIGHEND VACATION PLANNING TAKES TIME OF COURSE AND IMAGINATION AND HER STEADY CUSTOMERS CAN GET SPOILED ONE ELDERLY COUPLE WAS FURIOUS AFTER A CRUISE IN THE CARIBBEAN THAT COST 1800 A DAY PER PERSON WHAT WENT WRONG THE STEWARD DIDN'T FURNISH THEIR CABIN WITH A FRESH BAR OF SOAP EACH DAY 9308120069 930812 PEPPERAND SALT THIS IS A RULE THAT WE ALL LEARN BUT THIS COMES WITH A CAVEAT NOT ALL SIGNALLING DRIVERS TURN BASEBALL PLAYER SPIT PERSONALITY 9308120068 930812 MARKETING & MEDIA MARKETSCAN DEGREE ANTIPERSPIRANT HAS SCENT OF SUCCESS BY JACK REJTMAN AS COMPETITION HEATS UP IN THE ANTIPERSPIRANT MARKET HELENE CURTIS INDUSTRIES INC IS FINDING THAT SUCCESS IS A MATTER OF DEGREE MUCH BIGGER COMPANIES HAVE BEEN LOSING GROUND IN THE 15 BILLIONAYEAR MARKET BUT HELENE CURTIS RACKED UP SALES GROWTH OF 16 FOR ITS DEGREE ANTIPERSPIRANT IN SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS IN THE 52WEEK PERIOD ENDED JUNE 20 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE SALES ROSE 17 IN THE SAME PERIOD FOR HELENE CURTIS'S OTHER BRAND SUAVE THOSE FIGURES ARE IMPRESSIVE IN A MARKET THAT GROWS ONLY 2 OR SO A YEAR PROCTER & GAMBLE CO MAKES THE TOP TWO BRANDS IN THE CATEGORY AND IS ABOUT 24 TIMES THE SIZE OF HELENE CURTIS BUT ITS SALES DECLINED 2 FOR NO 1 SECRET AND DROPPED 5 FOR NO 2 SURE SALES OF BRISTOLMYERS SQUIBB CO'S BAN LINE FELL 10 IN THE PAST YEAR AND COLGATEPALMOLIVE CO'S MENNEN SPEED STICK HAD A 14 SLIDE IN TAKING ON THE LIKES OF P&G THE RELATIVELY SMALL HELENE CURTIS WITH SALES OF 12 BILLION HAS SAVORED THE SWEET SMELL OF SUCCESS BEFORE NINE YEARS AGO HELENE CURTIS WAS RANKED A LOWLY 28TH AMONG US HAIRCARE PRODUCT MAKERS BUT BY LAST OCTOBER THE COMPANY HAD SURPASSED P&G AS THE NO 1 MARKETER IN THAT 45 BILLION BUSINESS AS WITH SHAMPOOS AND CONDITIONERS DEODORANTS ARE A FRAGMENTED SLOWGROWTH CATEGORY IN WHICH MOST PRODUCTS HAVE MINIMAL DIFFERENCES BUT HELENE CURTIS HAS EXCELLED IN BOTH CATEGORIES BY FINDING THE TWO THINGS THAT GRAB CONSUMERS MOST A UNIQUE CLAIM AND CUTRATE PRICING DEGREE WAS INTRODUCED IN 1990 AND SINCE THEN HAS BLAZED ITS WAY ONTO STORE SHELVES BY PLAYING UP A PATENTED HEATACTIVATED FORMULA THAT IS SAID TO WORK HARDER AS THE BODY GETS HOTTER RELEASING AN EXTRA DOSE OF FRAGRANCE AND ANTIPERSPIRANT AGENTS AS NEEDED SUAVE WHICH WAS INTRODUCED SIX YEARS AGO HAS CAUGHT THE EYE OF RECESSIONSAVVY CONSUMERS BY OFFERING ALMOST A 40 DISCOUNT IT SELLS FOR 141 ON AVERAGE COMPARED WITH AN AVERAGE PRICE OF 224 FOR THE CATEGORY SINCE 1990 SUAVE AND DEGREE HAVE MORE THAN TRIPLED THE COMPANY'S MARKET SHARE TO 13 OF UNIT SALES AND ABOUT 10 IN DOLLARS P&G NOW COMPETES MORE ON THE PRICING FRONT SLASHING PRICES ON SOME SECRET AND SURE PRODUCTS BY 24 A YEAR AGO IT SAW PROGRESS IN THE 12 WEEKS ENDED JUNE 20 AS ITS SALES IN THE CATEGORY ROSE 4 WHILE COLGATE RESISTED PRICE CUTS ON MENNEN AND OTHER BRANDS AND HAD A SALES DECLINE OF 12 IN THE PERIOD ACCORDING TO IRI NUMBERS ONLY A MAJOR BREAKTHROUGH CAN TRULY SHAKE UP THE CATEGORY SAYS GINNY DOTZAUER VICE PRESIDENT OF THE US PERSONALCARE DIVISION OF COLGATEPALMOLIVE SHE VOWS THAT COLGATE NOW NO 3 IN THE BUSINESS WON'T BE SURPASSED BY HELENE CURTIS'S DEGREE AND SUAVE BRANDS IT'S A DOG RACE FOR SHARE POINTS HERE AND WE'RE ALL WITHIN SPITTING RANGE OF EACH OTHER MS DOTZAUER SAYS BUT FOR THE MOST PART NOW WE'RE TRADING A SHARE POINT HERE OR A SHARE POINT THERE WAITING FOR THE NEXT BIG INNOVATION WITH MYRIAD BRANDS AND A FINITE SUPPLY OF CUSTOMERS MARKETERS IN THIS NICHE POUR FORTH A DELUGE OF NEW SCENTS SIZES AND FORMS IN THE FIRST HALF OF THIS YEAR ALONE SOME 74 NEW VERSIONS WERE INTRODUCED ACCORDING TO MARKETING INTELLIGENCE SERVICE LTD A WHIFF OF WHAT'S NEW TEEN FRAGRANCES SUCH AS MALIBU SPLASH AND PERFECT PASSION UNDER THE ARRID LABEL OF CARTERWALLACE INC MULTICULTURAL BRANDS CALIENTE HOT IN SPANISH AND THAI FROM SMALLER MAKERS AND VISIBLY DIFFERENT PRODUCTS SUCH AS PASTELTINTED AND CLEAR VARIETIES SOME 30 CLEAR BRANDS HAVE BEEN INTRODUCED SINCE 1990 13 OF THOSE SINCE THE START OF THIS YEAR BUT THE QUESTION REMAINS WHETHER THEY WILL TRULY CATCH ON BECAUSE MANY ARE MESSY TO APPLY OR ARE INEFFECTIVE I PERSONALLY HAVE TRIED THEM AND I FELT I HAD TO TAKE A SHOWER AFTERWARD SAYS P&G SPOKESWOMAN CAROL BOYD EXPLAINING WHY HER COMPANY HAS NO CLEAR DEODORANTS OR ANTIPERSPIRANTS ADVERTISING IS HELPING DRIVE HELENE CURTIS'S SUCCESS IN 1992 THE COMPANY SPENT 27 MILLION ON ADVERTISING NEARLY A FIFTH OF ITS REVENUE IN THE CATEGORY AND SECOND ONLY TO PROCTER & GAMBLE'S 53 MILLION FOR THE SEGMENT ACCORDING TO LEADING NATIONAL ADVERTISERS INC LAST YEAR THE TOP FIVE MARKETERS IN THE BUSINESS SHELLED OUT MORE THAN 130 MILLION ON ADVERTISING DEGREE'S ADS CENTER ON THE SLOGAN YOUR BODY HEAT TURNS IT ON SHOWING HOW THE PRODUCT HELPS PEOPLE KEEP COOL IN TIMES OF STRESS IN ONE SPOT A MAN AND A WOMAN NERVOUSLY WAIT TO MEET FOR A BLIND DATE BOTH HAPPILY WEAR DEGREE AND DISASTER IS AVERTED IN ANOTHER SCENARIO A MAN HURRIEDLY FIXES A FLAT TIRE SO HE AND HIS DAUGHTER WON'T BE LATE TO A WEDDING AGAIN DEGREE SAVES THE DAY SUAVE LACKS ANY REAL TECHNOLOGICAL EDGE SO ITS ADS FOCUS ON VALUE WITH A SIMPLE MOTTO WHEN IT WORKS THIS WELL WHY PAY MORE 9308120067 930812 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO THE HILLS ARE ALIVE WITH SKI RESORTS' SUMMER PROMOTIONS RESORTS TEST NEW DRAWS LIKE LIFTSERVED MOUNTAIN BIKING WOMEN'S FITNESS PROGRAMS AND FLY FISHING TO SPUR SUMMER BUSINESS IN VERMONT STOWE MOUNTAIN RESORT'S NEW INLINE SKATING PARK HELPED BOOST JULY BUSINESS BY 15 FROM LAST YEAR KEYSTONE'S WOMEN'S MINISPA IN COLORADO WHICH MIXES NUTRITION CLASSES AND BIKING SOLD OUT AFTER A STORY IN SHAPE MAGAZINE MOUNTAIN BIKING IS UP 12 AT WINTER PARK IN COLORADO AND 75 AT MAINE'S SUNDAY RIVER MIKE BERRY OF THE NATIONAL SKI AREAS ASSOCIATION SAYS SUMMER TRAFFIC HAS BECOME MORE VITAL TO RESORTS' OVERALL FINANCIAL STRATEGY BUT WEATHER WHICH CAN MAKE OR BREAK RESORTS' WINTER SEASON CAN UNDERCUT SUMMER SUCCESS TOO THE MISSISSIPPI FLOODS KEPT AWAY SOME OF KEYSTONE'S MIDWEST VISITORS HEAVY SNOWS PUSHED BACK SCHOOL HOLIDAYS SLOWING JUNE TRAFFIC AT SMUGGLER MOUNTAIN BUT BUSINESS QUICKENED IN JULY AND IS AHEAD FOR THE YEAR AFTER THE VERMONT RESORT INCREASED ADVERTISING STILL A GOOD DAY IN THE WINTER IS EQUAL TO OUR WHOLE MONTH OF JULY SAYS MARK MENLOVE OF PARK CITY UTAH FUN TIES TURN INTO SERIOUS MONEY AS CARTOONS CROWD OUT STRIPES AND DOTS MORE GROWN MEN WILL SPORT BUNNIES AND FLOPPYEARED DOGS JUDGING FROM STORES' FALL STOCK OF NOVELTY TIES MACY'S IN NEW YORK BETS ON TIES WITH PEANUTS CHARACTERS WHILE ADAM MELDRUM & ANDERSEN & CO IN BUFFALO NY PREFERS LOONEY TUNES NOSTALGIA AND WHIMSY LET PEOPLE FEEL GOOD PARTING WITH THEIR CASH SAYS CONSULTANT ALAN MILLSTEIN NOSTALGIA ALSO PREVAILS AT BLOOMINGDALE'S WHERE SALES OF TIES WITH ART BY GRATEFUL DEAD'S JERRY GARCIA TOP THOSE WITH TRUMPETER MILES DAVIS'S HANDIWORK NOVELTY TIES NOW MAKE UP 35 OF ADAM MELDRUM'S FALL OFFERINGS AS WELL AS THOSE OF PITTSBURGH'S STYLEGATE OF SHADYSIDE AT THE KNOT SHOP CHAIN IN CHICAGO THEY COMPRISE 20 OF STOCK AND 40 OF TIE SALES FROM ALMOST NIL IN 1990 MARIO'S IN SEATTLE AND PORTLAND SAYS FUN TIES ARE 10 OF INVENTORY UP FROM 2 IN 1990 A REASON FOR THE GROWTH AT AROUND 30 THEY ARE AFFORDABLE SAYS EDWARD BRENNAN OF MACY'S WHERE SUCH TIES ACCOUNT FOR 25 OF SALES A NOD TO REALITY SOME CLOTHDIAPER SERVICES DIVERSIFY INTO DISPOSABLES IN ATLANTA LULLABY AND CHANGING TIME DIAPER SERVICES RELUCTANTLY DELIVER DISPOSABLES AS DOES BABYLAND DIAPER SERVICE OF SAN DIEGO CALIF THE MOVE IS AIMED AT PARENTS WITH GREEN CONSCIENCES BUT WHO OUTFIT JUNIOR IN DISPOSABLES OUTSIDE THE HOME OR WHOSE DAYCARE CENTERS BAR CLOTHCLAD BOTTOMS LULLABY SAYS MANAGER CINDY DANIELS HAS BEEN ABLE TO KEEP CLIENTS BY LETTING PARENTS ORDER A MIX OF CLOTH AND DISPOSABLE DIAPERS WEEKLY CHANGING TIME AND BABYLAND GIVE THE EFFORT AN ECOSPIN CHANGING TIME SELLS DISPOSABLES THAT UNLIKE STOREBOUGHT VERSIONS DON'T HAVE PLASTIC LINERS AND CHEMICALS ITS NEWSLETTER THE POOP SHEET LISTS DAYCARE CENTERS THAT ALLOW COTTON DIAPERS THE WAR IS NOT OVER SAYS CRAIG INTRO PRESIDENT BABYLAND MEANWHILE RETRIEVES THE USED DISPOSABLES AND AFTER PROCESSING SELLS THE PULP AND PLASTIC TO RECYCLERS A WEEK'S SUPPLY OF DISPOSABLES FOR A NEWBORN COSTS 1290 AND CLOTH COSTS 1295 FROM BABYLAND CAN THE CARD FILE BUSINESSCARD SCANNERS ARE ON THE WAY COURTESY OF AT LEAST THREE CALIFORNIA FIRMS MICROTEK LAB CYPHERTECH AND PACIFIC CREST TECHNOLOGIES THE 150400 GADGETS SOME SHIPMENTS BEGAN IN JULY READ CARDS AND CREATE A COMPUTER DATABASE WITH THEM THEY COULD BECOME FAIRLY MAINSTREAM SAYS GILLIAN MACE OF DATAQUEST INC NOT VEGETARIANS JUST VEGETARIAN AWARE HEALTHFOCUS EMMAUS PA COINS THE TAG TO DESCRIBE PEOPLE WHO SAY THEY ARE VEGETARIAN BUT WHO ACTUALLY EAT MEAT ONLY NOT A LOT OF IT HABITS ARE MOVING TOWARD VEGETARIAN BUT AMERICANS AREN'T ADOPTING VEGETARIAN PRACTICES ACROSS THE BOARD SAYS THE CONSULTING FIRM'S LINDA GILBERT MUTANT PACKAGING AND CROSSWRAPPING GRAB ATTENTION FINDS PACKAGING MAGAZINE THE PACKET FOR FLOPPY DISKS FROM SCITEX AMERICA CORP BEDFORD MASS TURNS INTO AN ORIGAMILIKE DISK RACK SWEETHOME FARM OF EUGENE ORE MEANWHILE PUTS GRANOLA CEREAL INTO GABLETOP CARTONS USUALLY ASSOCIATED WITH MILK AND JUICES CARS GOING TO THE DOGS THE ASPCA TRIES TO TURN OLD AUTOS INTO NEW CASH THE AMERICAN SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS BASED IN NEW YORK LAUNCHES A PLAN TO RAISE FUNDS WITH USEDCAR DONATIONS THE DONATED CARS ARE SOLD AT AUCTION AND THE ASPCA HOPES TO RAISE 30000 IN THE FIRST YEAR SAYS SOCIETY OFFICIAL ELINOR POLVERE KENNETH ALBRECHT OF THE NATIONAL CHARITIES INFORMATION BUREAU CALLS IT A SIGN OF SHARP COMPETITION FOR MONEY BUT OF THE CARS DONATED SO FAR MANY WERE OLDER MODELS AND MR ALBRECHT OF THE BUREAU NOTES VALUATION CAN BE STICKY MANY CARS ARE PRICED VIA A GUIDE BUT THOSE WORTH MORE THAN 5000 REQUIRE AN INDEPENDENT APPRAISAL A JUNKER HEADED FOR THE HEAP MAY GET ONLY A RECEIPT DESCRIBING THE CAR WITH VALUE LEFT TO THE DONOR'S HONESTY BAY SHORE AUTO MART IN NEW YORK WHICH RUNS THE PROGRAM FOR THE ASPCA GETS 10 OF WHAT THE CARS FETCH BRIEFS IT'S YOUR CALL SOUTHWESTERN BELL BILLS WILL HAVE A CHECKOFF BOX SO CUSTOMERS CAN DONATE TO FLOODRELIEF EFFORTS FOR THE HOT DAYS OF SUMMER MCI SETS UP AN 800 NUMBER FEATURING 12 COOL SOUNDS SUCH AS A WINDY HARBOR AND SEAGULLS 9308120065 930812 COMMODITIES EVIDENCE OF STRONG US DEMAND FUELS SURGE IN GASOLINE PRICES AMID HEAVY FUTURES TRADING BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL THE US MOTORIST APPEARS TO BE SUCCEEDING WHERE OPEC FAILED IN PUSHING UP WORLD OIL PRICES GASOLINE PRICES SUDDENLY SURGED IN HEAVY FUTURES TRADING IN NEW YORK AND LONDON YESTERDAY ON FURTHER EVIDENCE OF STRONG US DEMAND FOR MOTOR FUEL THAT HELPED TO FIRM UP WORLD OIL MARKETS ON THE NEW YORK MERCANTILE EXCHANGE UNLEADED GASOLINE FOR SEPTEMBER DELIVERY JUMPED 215 CENTS TO 5578 CENTS A GALLON THE OCTOBER GASOLINE CONTRACT ALSO WAS UP BUT BY LESS SETTLING 128 CENTS HIGHER AT 5312 CENTS A GALLON FOR THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WHICH HAS BEEN TRYING TO STOP A MONTHSLONG FALL IN CRUDE PRICES THE BUOYANT GASOLINE MARKET WAS WELCOME NEWS IT CONTRIBUTED TO HIGHER CRUDE PRICES WORLDWIDE AT LEAST FOR THE DAY IN US FUTURES TRADING CRUDE OIL FOR SEPTEMBER DELIVERY ROSE 36 CENTS TO SETTLE AT 1788 A BARREL ON THE INTERNATIONAL PETROLEUM EXCHANGE IN LONDON BRENT BLEND CRUDE FUTURES WERE UP AS MUCH AS 44 CENTS A BARREL A THREAT BY OIL WORKERS TO STRIKE LATER THIS MONTH IN NIGERIA A MAJOR PRODUCER OF HIGHQUALITY CRUDES ALSO WAS SAID TO BE A FACTOR IN THE CRUDE GAINS BUT TRADERS SAID THE CHIEF REASON FOR THE INCREASES WAS GROWING EVIDENCE OF A STRONG REBOUND IN GASOLINE USE IN THE US WHICH IS STILL THE WORLD'S LARGEST CONSUMER OF OIL THIS SUMMER WE ARE SEEING THE BEST GASOLINE DEMAND EVER SAID THOMAS BLAKESLEE A TRADER AND ANALYST WITH BRODY WHITE & CO FURTHER EVIDENCE OF THE APPARENT STRONG DEMAND FOR MOTOR FUEL CAME LATE TUESDAY AFTER FUTURES TRADING HAD CLOSED ON THE RELEASE OF THE AMERICAN PETROLEUM INSTITUTE'S LATEST WEEKLY REPORT ON US OIL INVENTORIES THE API REPORT SHOWED A HUGE DROP OF 66 MILLION BARRELS IN GASOLINE INVENTORIES LAST WEEK THAT WAS THE LARGEST WEEKLY DRAWDOWN IN MORE THAN THREE YEARS SAID MR BLAKESLEE HE ADDED THAT US GASOLINE INVENTORIES OF 2086 MILLION BARRELS ARE ONLY SLIGHTLY ABOVE THE AMOUNT OF SUPPLIES THE US ENERGY DEPARTMENT CONSIDERS NECESSARY FOR MINIMUM OPERATING LEVELS ALSO HE SAID DEMAND FOR GASOLINE HAS AVERAGED MORE THAN THE PSYCHOLOGICALLY IMPORTANT LEVEL OF EIGHT MILLION BARRELS A DAY FOR FIVE OUT OF THE LAST SEVEN WEEKS RECENT CLOSINGS OF SEVERAL US REFINERIES DUE TO MECHANICAL PROBLEMS OR FOR MAINTENANCE HAD RAISED SOME CONCERN THAT GASOLINE SUPPLIES COULD TIGHTEN US REFINERIES ARE RUNNING AT A HIGH CAPACITYUTILITIZATION RATE OF 953 ACCORDING TO THE LASTEST API FIGURES UNTIL RECENTLY GASOLINE'S ROLE IN THE OVERALL OIL MARKETS WAS OVERSHADOWED BY A PERCEIVED GLUT OF CRUDE OIL FROM INCREASING OPEC PRODUCTION OPEC GENERALLY IS ASSUMED TO BE PRODUCING AROUND ONE MILLION BARRELS A DAY OVER ITS THIRDQUARTER OUTPUT CEILING OF 236 MILLION BARRELS A DAY AND CRUDE OIL PRICES HAVE DROPPED BY AROUND 3 A BARREL IN RECENT MONTHS AS A RESULT STILL GASOLINE DEMAND HAS BEEN CLIMBING EVEN AS THE SOCALLED DRIVING SEASON NEARS ITS TRADITIONAL LABOR DAY END ACCORDING TO CALCULATIONS BY ROBERT BOSLEGO A WINCHESTER MASS CONSULTANT WHO ANALYZES US OIL STATISTICS FOR HIS CLIENTS GASOLINE DEMAND SURGED TO NEARLY 82 MILLION BARRELS A DAY LAST WEEK AS A RESULT MR BOSLEGO SAID A FOURWEEK MOVING AVERAGE HE CALCULATES WAS UP 53 FROM A YEAR EARLIER WE BELIEVE SUCH A STRONG TREND IS EVIDENCE OF A LASTING RECOVERY IN GASOLINE CONSUMPTION HE SAID IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS GOLD FUTURES PRICES FELL FOR THE SECOND CONSECUTIVE DAY TRADERS SAID MOST OF THE SELLING OCCURRED IN NEW YORK AS A NUMBER OF COMMODITY FUNDS OR MANAGED POOLS OF INVESTORS' MONEY MOVED TO LIQUIDATE LONG POSITIONS ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR DECEMBER DELIVERY SKIDDED 570 TO 37870 AN OUNCE FOLLOWING A 240 DECLINE TUESDAY THERE WAS AN AMAZING AMOUNT OF SELLING SAID GERARD POLLINO A SENIOR TRADER WITH MILLENIUM FUTURES IN NEW YORK MR POLLINO SAID THAT THE MARKET STILL APPEARS ABLE TO HOLD DECEMBER GOLD ABOVE THE 375 SUPPORT LEVEL A BREACH BELOW THAT LEVEL COULD SEND GOLD INTO A TRADING RANGE OF 360 TO 365 TRADERS SAID MARKET RUMORS THAT CENTRAL BANK SELLING HAD EMERGED APPEARED TO CONTRIBUTE TO THE SELLING BUT COULD NOT BE INDEPENDENTLY CONFIRMED SEVERAL TRADERS FAMILIAR WITH CENTRAL BANK BULLION DEALINGS DENIED THAT ANY MAJOR CENTRAL BANK WAS UNLOADING GOLD INTO THE MARKET OTHER FACTORS CITED FOR THE WEAKER GOLD PRICE WAS THE FURTHER EASING OF THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 FUTURES INDEX A WIDELY FOLLOWED BAROMETER OF INFLATION AT THE RAWMATERIAL LEVEL GOLD A CLASSIC HEDGE AGAINST INFLATION TENDS TO WEAKEN WHEN INFLATIONARY FEARS SUBSIDE COFFEE FUTURES PRICES SLUMPED ON DECREASING FEARS OF A BIG FREEZE IN BRAZIL ON THE COFFEE SUGAR & COCOA EXCHANGE THE ACTIVE SEPTEMBER CONTRACT PLUNGED 485 CENTS TO 7010 CENTS A POUND ANALYSTS SAID THAT THE WEAKENING PRICE TREND MAY ENCOURAGE COFFEE PRODUCERS TO ENFORCE A RECENTLY AGREED PRODUCTION RETENTION PLAN AIMED AT CURBING EXPORTS THE LOWER PRICES GO THE MORE INCENTIVE PRODUCERS WILL HAVE TO GET THEIR ACT TOGETHER SAID JUDITH GANES A COMMODITY ANALYST WITH MERRILL LYNCH EIGHT CENTRAL AND SOUTH AMERICAN PRODUCER NATIONS HAVE AGREED TO THE PACT A MEETING OF AFRICAN COFFEE PRODUCERS IS SCHEDULED FOR AUG 1617 9308120064 930812 WORLD MARKETS EUROPEAN STOCKS CLIMB BROADLY SOME TO HIGHS CHEERED BY RATES OUTLOOK TOKYO PRICES RALLY BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL EUROPEAN STOCK PRICES POSTED SIZABLE GAINS ALMOST ACROSS THE BOARD YESTERDAY AS INVESTORS TOOK CHEER FROM SIGNS THAT INTEREST RATES IN THE REGION WERE HEADED LOWER EQUITY INDEXES HIT RECORD LEVELS IN LONDON PARIS MADRID AND STOCKHOLM AMID HIGH VOLUME FOR THE USUALLY SLEEPY MIDAUGUST PERIOD OVERSEAS INVESTORS PARTICULARLY FROM THE US AND JAPAN WERE SAID TO BE HEAVY BUYERS IN MOST MARKETS MEANWHILE IN TOKYO STOCKS RALLIED 12 WEDNESDAY BOOSTING THE BENCHMARK NIKKEI INDEX TO ITS FIRST CLOSE ABOVE 20500 IN TWO MONTHS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11039 UP 110 REFLECTING INCREASES IN AMERICAN ASIA/PACIFIC AND EUROPEAN MARKETS SECURITIES BROKERS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 14901 UP 549 OR 38 WITH KANKAKU SECURITIES OF JAPAN POSTING A 7 GAIN IN ITS LOCAL CURRENCY HEALTHCARE STOCKS TRAILED AT 10494 DOWN 425 OR 39 WITH US HEALTHCARE OF THE US SLIDING 11 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SURGED 345 POINTS OR 12 TO 30061 CRACKING THE 3000 BARRIER FOR THE FIRST TIME THE FT 30STOCK INDEX ADVANCED 188 POINTS TO 23791 VOLUME WAS 8304 MILLION SHARES UP FROM 7719 MILLION SHARES A DAY EARLIER LONDON PRICES HAVE BEEN RISING FAIRLY STEADILY SINCE JULY WITH THE MAIN INDEXES UP ALMOST 7 IN THE PAST THREE WEEKS AT SUCH HEADY LEVELS SOME ANALYSTS STARTED TO PREDICT A CONSOLIDATION OR SLIGHT RETRENCHMENT IN THE SHORT TERM THE MARKET'S A BIT AHEAD OF ITSELF AND COULD COME BACK SAID GEORGE HODGSON AN ANALYST AT SG WARBURG SECURITIES IN LONDON MANY COMPANIES ARE FINDING THAT BUSINESS CONDITIONS ARE STILL DIFFICULT SO THERE IS A LOT OF ROOM FOR DISAPPOINTMENT ON CORPORATE EARNINGS IN PARIS MOST ISSUES GAINED 1 TO 2 FOLLOWING A FRENCH LENDINGRATE REDUCTION THE CAC 40 INDEX GAINED 2761 POINTS OR 13 TO A RECORD 216739 TOPPING THE 214983 CLOSING HIGH SET LAST FRIDAY THE FRENCH CENTRAL BANK TRIMMED ITS 24HOUR LENDING RATE TO 925 FROM 975 THE SECOND CUT IN THE RATE THIS WEEK INTERPRETED AS A SIGNAL OF A BROADER MONETARY EASING WE HAD A STRONG DAY BASED ON THE IDEA THAT INTEREST RATES ARE HEADED DOWN ALTHOUGH THE PACE MIGHT NOT BE AS FAST AS THE MARKETS HAD EXPECTED SAID PIER BUTLER AN ANALYST AT BARING SECURITIES IN PARIS WITH MANY COMPANIES SET TO BENEFIT FROM LOWER RATES MR BUTLER SAID THERE IS STILL SIGNIFICANT UPSIDE TO THIS MARKET IT'S FAR TOO EARLY TO START TAKING PROFITS ANALYSTS SAID THE RECENT WILLINGNESS OF FRENCH AUTHORITIES TO EASE MONETARY POLICY ALBEIT MODERATELY POINTS TOWARD AN EARLIER RATHER THAN LATER ECONOMIC RECOVERY IN THE COUNTRY THE MARKET WAS CONVINCED FRANCE'S HIGHINTERESTRATE POLICY WAS COUNTERPRODUCTIVE SAID ROBERT MINIKIN AN ANALYST AT BANKERS TRUST IN LONDON PEOPLE NOW SEE THESE REDUCTIONS AS A POSITIVE STEP TOWARD A MONETARY POLICY THAT PROMOTES ECONOMIC GROWTH IN MADRID THE GENERAL INDEX GAINED 255 POINTS OR ALMOST 1 TO A NEW 1993 HIGH OF 27418 TURNOVER NEARLY DOUBLED FROM THE PREVIOUS DAY AS SENTIMENT WAS BOOSTED BY THE SPANISH TREASURY'S DECISION TO LOWER THE MARGINAL YIELD ON ITS ONEYEAR BILLS TO 984 FROM 1008 BANKS UTILITIES AND CONSTRUCTION COMPANIES LED THE GAINERS A TREND EXPECTED TO CONTINUE THERE ARE A LOT OF SPANISH COMPANIES WITH A HIGH LEVEL OF INDEBTEDNESS SAID ALVARO ROBLES AN ANALYST AT SOCIETE GENERALE VALORES IN MADRID RATE CUTS WILL HELP THEM SIGNIFICANTLY IN FRANKFURT PRICES ENDED MIXED FOR THE THIRD SESSION IN A ROW AS A REDUCTION IN GERMAN INTEREST RATES ISN'T EXPECTED SOON THE DAX 30STOCK INDEX EDGED UP 064 POINT TO 186580 IN THE CONTINUING CONSOLIDATION BUT AMSTERDAM SHARES SURGED BUOYED PARTLY BY A STRONGER DOLLAR AND FAVORABLE DUTCH CORPORATE EARNINGS REPORTS THE GAINS EXTENDED A MONTHLONG RALLY IN STOCKS SENSITIVE TO ECONOMIC CYCLES IN BRUSSELS PRICES JUMPED AS INVESTORS GOT CAUGHT UP IN THE SWING TO EUROPEAN EQUITIES AND AWAY FROM US ISSUES IN STOCKHOLM SHARES RALLIED AGAIN SETTING A 1993 HIGH RESPONDING TO DECLINING MONEY MARKET RATES A STRONG DOLLAR POSITIVE CORPORATE EARNINGS AND THE OUTLOOK FOR LOWER SWEDISH INTEREST RATES IN ZURICH STOCKS GAINED SHARPLY AFTER EARLY BARGAINHUNTING FOLLOWING THE PREVIOUS DAY'S DROP TRIGGERED FUTURESRELATED BUYING TOKYO'S GAINS WERE CONCENTRATED IN TELECOMMUNICATIONS FINANCIAL AND RELATED SHARES THAT ARE EXPECTED TO BENEFIT IF JAPAN APPROVES A NEW ECONOMIC STIMULUS STOCK PRICES OPENED FLAT BUT SOON ROCKETED UP AS BUYING BY ARBITRAGERS TRIGGERED PURCHASES BY OVERSEAS INVESTORS AND JAPANESE INVESTMENT TRUST FUNDS AS WELL AS ACROSSTHEBOARD COVERING OF SHORT OR OVERSOLD POSITIONS ALSO THE JAPANESE BOND MARKET'S GOOD PERFORMANCE HEARTENED STOCK INVESTORS BY REINFORCING THEIR VIEW THAT JAPAN'S CENTRAL BANK MAY CUT ITS OFFICIAL DISCOUNT RATE SOON THE RALLY WAS FUELED BY WIDESPREAD OPTIMISM THAT JAPANESE INTEREST RATES WILL FALL AND THAT THE NEW GOVERNMENT WILL ADOPT STIMULUS POLICIES AS WELL AS BY PORTFOLIO REWEIGHTING TO THE TOPIX FROM THE NIKKEI BENEFITING FINANCIAL STOCKS IN SINGAPORE STOCKS ENDED SLIGHTLY HIGHER AFTER PROFITTAKING CHOPPED DOWN GAINS FROM A BUYING WAVE THAT PUSHED THE MARKET TEMPORARILY TO NEW HIGHS IN SEOUL SHARES ROSE FOR THE SECOND DAY IN A ROW ON EXPECTATIONS OF STRONG SOUTH KOREAN GOVERNMENT EFFORTS TO ALLEVIATE SELLING PRESSURE IN WELLINGTON SHARES FELL AS PROFITTAKERS ENDED A RUN OF SIX CONSECUTIVE RECORD CLOSING HIGHS AMONG CORPORATE DEVELOPMENTS IN MILAN FERRUZZI FINANZIARIA AND MONTEDISON REMAINED SUSPENDED FOR DISCLOSURES OF WIDER LOSSES A BIG REDUCTION IN SHARE CAPITAL AND RESTATED FINANCIAL RESULTS TRADING IN THE SHARES WAS TO RESUME TODAY IN AMSTERDAM HOOGOVENS SOARED 48 GUILDERS OR 10 TO 5130 GUILDERS 2654 LIFTED BY BETTERTHANEXPECTED FIRSTHALF RESULTS FOR THE STEELMAKER AND ITS FORECAST OF SECONDHALF IMPROVEMENTS IN ITS STEEL DIVISION HOOGOVENS'S NET LOSS FOR THE FIRST SIX MONTHS WIDENED TO 189 MILLION GUILDERS 1037 MILLION FROM 49 MILLION GUILDERS A YEAR EARLIER AND THOUGH SPECIAL CHARGES MORE THAN DOUBLED TO 25 MILLION GUILDERS FROM 10 MILLION GUILDERS OPERATING LOSSES NARROWED 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 9308120062 930812 TWA'S PLAN TO REORGANIZE WINS APPROVAL AIRLINE OFFERS 2FOR1 SALE IN A BID FOR PUBLICITY AFTER YEARS OF LOSSES BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL TRANS WORLD AIRLINES RECEIVED COURT APPROVAL TO EMERGE FROM BANKRUPTCY PROTECTION AND PROMPTLY ANNOUNCED A 2FOR1 SALE TO CELEBRATE UNDER THE PLAN APPROVED BY US BANKRUPTCY COURT IN WILMINGTON DEL YESTERDAY TWA WOULD EMERGE FROM PROTECTION LATE THIS MONTH OR IN EARLY SEPTEMBER SOME 18 MONTHS AFTER THE CARRIER FILED FOR BANKRUPTCYLAW PROTECTION FROM CREDITORS TWA WHICH IS BASED IN MOUNT KISCO NY SAID FLIERS WHO BUY A TICKET BY THE END OF SATURDAY CAN GET A FREE COMPANION TICKET FOR DOMESTIC TRAVEL FROM SEPT 15 THROUGH JAN 31 OR FOR TRAVEL TO EUROPE FROM NOV 1 THROUGH MARCH 31 THE 2FOR1 SALE IS AN OBVIOUS MOVE TO GET PUBLICITY FOR A CARRIER STRUGGLING TO REGAIN ITS FOOTING AFTER YEARS OF LOSSES BEGINNING UNDER FORMER CHAIRMAN CARL ICAHN THE SALE ALSO WOULD HAVE THE EFFECT OF PADDING ITS CASH POSITION AT LEAST IN THE NEAR TERM BUT THE SALE CARRIES SOME RISK IT WASN'T CLEAR LAST NIGHT WHETHER OTHER CARRIERS WOULD MATCH TWA'S OFFER IN THE GAME OF AIRLINE ONEUPMANSHIP THE OTHER CARRIERS COULD ALSO GO BEYOND TWA'S BRIEF WINDOW OF WHEN TICKETS MUST BE PURCHASED JULIUS MALDUTIS AIRLINE ANALYST AT SALOMON BROTHERS INC SAID CONDITIONS ARE RIPE FOR FARE CUTS WITH A JURY'S FINDING THIS WEEK THAT AMR CORP'S AMERICAN AIRLINES DIDN'T CUT FARES TO PUT TWO WEAKER CARRIERS OUT OF BUSINESS ON TOP OF THAT HE SAID IS THE EMERGENCE OF CONTINENTAL AIRLINES FROM BANKRUPTCY PROTECTION AND TWA'S PLANNED EXIT THE AIRLINE INDUSTRY WHICH WAS ALREADY EXTREMELY VOLATILE WILL BECOME MORE VOLATILE HE SAID AMERICAN AIRLINES SAID IT IS STUDYING TWA'S 2FOR1 FARE DEAL TWA PUT LIMITS ON WHAT IT CALLS A THREEDAY PARTY THE BIGGEST IS THAT THE COMPANION FARES CAN'T BE USED WITH THE 35 LEISUREFARE DISCOUNTS PUT IN PLACE BY THE INDUSTRY LAST WEEK THAT MEANS A CUSTOMER WHO WANTS TO TRAVEL NEW YORK TO LOS ANGELES WITH A COMPANION UNDER THE 2FOR1 DEAL WOULD HAVE TO PAY 461 ROUNDTRIP INSTEAD OF THE 379 FOR A SOLO TRAVELER USING THE 35 DISCOUNT IN ADDITION A SPOKESWOMAN SAID THE COMPANION FARES WON'T BE AVAILABLE ON ALL SEATS AND THAT THEY WON'T APPLY AROUND THANKSGIVING OR THE CHRISTMAS THROUGH NEW YEAR'S HOLIDAYS WHEN TWA FILED FOR BANKRUPTCY PROTECTION JAN 31 1992 IT HAD A DEBT LOAD OF 16 BILLION AND HAD EXPERIENCED TWO YEARS OF STEEP LOSSES UNDER MR ICAHN ALTHOUGH IT IS STILL UNPROFITABLE THE AIRLINE HAS CUT ITS LOSSES AND SLICED ITS LONGTERM DEBT TO ABOUT 1 BILLION THE REORGANIZED AIRLINE WILL BE 55OWNED BY CREDITORS AND 45OWNED BY ITS 25000 EMPLOYEES THE WORKERS MADE MORE THAN 600 MILLION IN WAGE AND BENEFIT CONCESSIONS IN RETURN FOR THEIR STOCK THE AIRLINE'S THREE MAIN UNIONS WILL HAVE FOUR OF THE 15 BOARD SEATS UPON EMERGENCE THE AIRLINE WHOSE MAJOR HUB IS IN ST LOUIS SAID LAST MONTH THAT WILLIAM R HOWARD FORMER CHAIRMAN OF PIEDMONT AVIATION INC WILL BE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TWA 9308120061 930812 LETTERS TO THE EDITOR MY LIPS WEREN'T SEALED I WAS AMAZED TO READ IN YOUR AUG 6 EDITORIAL THE 43 PRESSURE COOKER THAT ALAN BLINDER FOUND ADHESIVE TAPE OVER HIS MOUTH WHEN HE TRIED TO REPORT THAT THE BUDGET PLAN WOULD KNOCK NEARLY A PERCENTAGE POINT OFF ECONOMIC GROWTH IN THE COMING YEARS FIRST I CHECKED MY MOUTH NO TRACE OF ADHESIVE TAPE THEN I CHECKED CEA'S ANALYSIS NO SUCH STATEMENT WHERE DO YOU GET SUCH IDEAS THE FACT IS THAT WE EXPECT THE PRESIDENT'S PLAN TO MAKE GDP HIGHER BY THE END OF THE FORECAST PERIOD BY RAISING INVESTMENT AND PRODUCTIVITY WHY DOES THE JOURNAL WANT TO SEE CONSPIRACIES WHERE NONE EXIST THE TRUTH IS THAT THE MIDSESSION REVIEW WAS DELAYED WHILE WE WAITED FOR CONGRESS TO PASS THE BUDGET AND FOR NO OTHER REASON 9308120060 930812 MCI'S AKERSON ABRUPTLY QUITS TO LEAD GENERAL INSTRUMENT IN MULTIMEDIA PUSH BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL MCI COMMUNICATIONS CORP'S PRESIDENT DANIEL AKERSON ABRUPTLY QUIT TO BECOME CHAIRMAN OF GENERAL INSTRUMENT CORP WHICH IS EQUIPPING THE CABLETELEVISION INDUSTRY IN ITS BATTLE AGAINST LOCAL PHONE MONOPOLIES IN THE BURGEONING MULTIMEDIA ARENA MR AKERSON 45 YEARS OLD ALSO WILL BECOME GI'S CHIEF EXECUTIVE OFFICER AND A GENERAL PARTNER OF GI'S PRINCIPAL OWNER FORSTMANN LITTLE & CO THE LEVERAGED BUYOUT FIRM AT GI HE WILL SUCCEED DONALD H RUMSFELD 61 WHO PLANS TO RESIGN AUG 28 BUT WILL REMAIN ON GI'S BOARD MR AKERSON'S NEW JOB IS CERTAIN TO SHAKE UP THE CABLE AND LOCAL PHONE INDUSTRIES AS A KEY STRATEGIST IN MCI'S METEORIC GROWTH AFTER THE BREAKUP OF AMERICAN TELEPHONE & TELEGRAPH CO'S MONOPOLY MR AKERSON HELPED USHER IN COMPETITION FOR PHONE CUSTOMERS LATELY THE AGGRESSIVE MR AKERSON A US NAVAL ACADEMY GRADUATE WORKED HARD TO STEER MCI INTO MULTIMEDIA SERVICES THAT COMBINE COMMUNICATIONS COMPUTERS AND VIDEO TECHNOLOGIES HE ALSO HELPED NEGOTIATE MCI'S AGREEMENT TO SELL A 20 STAKE TO BRITISH TELECOMMUNICATIONS PLC FOR 43 BILLION I KNOW ENOUGH TO BE DANGEROUS MR AKERSON SAID GIVEN MY PERSONALITY I'LL PROBABLY GET INTO IT AS SOON AS I CAN GI OBVIOUSLY HOPES SO THE COMPANY HAS BEEN BUILDING SKILLS IN EVERYTHING FROM DIGITAL COMPRESSION WHICH IT INVENTED TO HIGHDEFINITION TV THESE ELEMENTS WILL BE CRUCIAL TO THE INDUSTRY'S NEXT GREAT COMPETITIVE BATTLEFIELD MULTIMEDIA SERVICES WHERE A FIGHT IS EXPECTED IN THE LOCALSERVICES ARENA NOW DOMINATED BY LOCAL PHONE AND CABLE MONOPOLIES FORSTMANN LITTLE FOUNDING PARTNER THEODORE FORSTMANN WHOSE COMPANY'S 40PLUS STAKE IN GI IS WORTH ABOUT 15 BILLION PRAISED MR RUMSFELD'S STEWARDSHIP OF GI HE NOTED THAT THE COMPANY'S STOCK HAS MORE THAN TRIPLED IN THE LAST YEAR TO 47 FROM 15 ITS PRICE WHEN FORSTMANN TOOK IT PUBLIC IN MID1992 GI NEEDED A LOT OF WRENCHING AND FIXING HE SAID THAT'S BEEN ACCOMPLISHED BUT HE SAID THAT GI IS GOING TO NEED NEW LEADERSHIP TO TAKE IT TO THE NEXT LEVEL AND THAT MR AKERSON HAS THE RIGHT COMBINATION OF ENTREPRENEURIAL FINANCIAL AND TECHNICAL SKILLS TO MAKE THIS HAPPEN MR AKERSON NOTED THAT GI HAD GONE FROM BEING AN UNFOCUSED CONGLOMERATE BEFORE MR RUMSFELD TOOK IT OVER TO BEING A HIGHTECH COMPANY ON THE CUSP OF AN EXPLODING INDUSTRY GI WHICH HAS ABOUT 11 BILLION IN ANNUAL REVENUE IS WORKING WITH INTEL CORP AND MICROSOFT CORP TO DEVELOP A MICROPROCESSOR THAT WILL ALLOW TV CUSTOMERS TO USE INTERACTIVE MULTIMEDIA SERVICES AND GI IS SELLING THE CABLE COMPANIES EQUIPMENT TO OFFER CUSTOMERS AS MANY AS 500 TV CHANNELS MCI CHAIRMAN BERT C ROBERTS JR SAID HE WAS STUNNED WHEN MR AKERSON TOLD HIM ON TUESDAY MORNING ABOUT HIS PLANS TO LEAVE MCI WE'RE SITTING HERE WITH A SENSE OF URGENCY LOSING A CRITICALPATH PLAYER HE SAID THIS WILL OBVIOUSLY LEAVE A HOLE HERE YESTERDAY AFTERNOON AN MCI SPOKESWOMAN SAID HER DEPARTMENT STILL HADN'T BEEN TOLD ABOUT WHERE MR AKERSON WAS HEADED AND ONLY LEARNED OF HIS PLANS AFTER READING THE DOW JONES NEWS WIRE AN INDIVIDUAL CLOSE TO GI SAID MR AKERSON HADN'T MADE UP HIS MIND ABOUT TAKING GI'S OFFER UNTIL TUESDAY NIGHT MR ROBERTS ACKNOWLEDGED THAT HE SPENT MOST OF TUESDAY MAKING COUNTEROFFERS TO MR AKERSON THAT HE HOPED WOULD PERSUADE HIM TO STAY WITH MCI IN THE END IT WAS CLEAR HE HAS AN ENORMOUS FINANCIAL PACKAGE IN FRONT OF HIM MR ROBERTS SAID NEITHER MR FORSTMANN NOR MR AKERSON WOULD DISCUSS THAT FINANCIAL PACKAGE SAYING IT WILL ALL COME OUT IN GI'S PROXY BEFORE NEXT YEAR'S ANNUAL MEETING MR FORSTMANN DID SAY IT WOULD BE IN LINE WITH MR RUMSFELD'S COMPENSATION THREE YEARS AGO WHEN HE JOINED GI AT THAT TIME MR FORSTMANN SAID MR RUMSFELD MADE BETWEEN 800000 AND 900000 A YEAR AN AMOUNT THAT'S IN LINE WITH WHAT MR AKERSON IS CURRENTLY MAKING AT MCI MR AKERSON ALSO HAS BEEN OFFERED AN OWNERSHIP STAKE IN GI BUT HE AND MR FORSTMANN DECLINED TO SAY HOW LARGE THE STAKE IS MR RUMSFELD WHO WAS WHITE HOUSE CHIEF OF STAFF AND SECRETARY OF DEFENSE IN THE FORD ADMINISTRATION FOUND MR AKERSON'S HIRING TERRIFIC IN FACT HE SAID THE IDEA TO FIND A NEW CHAIRMAN WAS HIS AFTER THE PUBLIC OFFERING LAST JUNE I TOLD THE BOARD IT WAS TIME TO TAKE THE COMPANY TO THE NEXT LEVEL DAN AKERSON IS A VERY TALENTED EXECUTIVE WITH THE RIGHT BACKGROUND MR RUMSFELD SAID HE'S PLANNING TO WRITE ABOUT HIS GOVERNMENT EXPERIENCES AND TO GET INVOLVED IN PUBLIC POLICY ISSUES ANALYSTS OF THE LONGDISTANCE PHONE INDUSTRY EXPRESSED SURPRISE AT MR AKERSON'S EXIT BUT SAID THEY DIDN'T EXPECT IT TO AFFECT MCI TOO NEGATIVELY THE VOID WILL BE A STRATEGIC ONE RATHER THAN A DAYTODAY TACTICAL PROBLEM FOR MCI SAID JACK B GRUBMAN AN ANALYST AT PAINEWEBBER INC DAN HAD THE BROADEST KNOWLEDGE OF THE INDUSTRY WITHIN MCI HE'S A GOOD THINKER MR ROBERTS SAID HE HASN'T DECIDED HOW TO REPLACE MR AKERSON DO WE FILL HIS POSITION FROM WITHIN SHOULD WE GO OUTSIDE OR GO THROUGH A RESTRUCTURING I DON'T KNOW THE ANSWER RIGHT NOW HE SAID ADDING THAT HE WILL SOON TAKE THE MATTER UP WITH MCI'S BOARD IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY GI SHARES FELL 2 TO 47 IN NATIONAL OVERTHECOUNTER TRADING MCI SHARES ROSE 625 CENTS TO 2825 9308120059 930812 LEISURE & ARTS FILM SPIRITUAL HOCUSPOCUS A BIG LOSER BY JULIE SALAMON UNIVERSAL PICTURES IS ADVERTISING THE FACT THAT ITS NEW MOVIE HEART AND SOULS WAS DIRECTED BY THE SAME MAN WHO DIRECTED CITY SLICKERS THE AMIABLE 1991 BILLY CRYSTAL COMEDY ABOUT AN URBAN JEWISH MAN WHO OVERCOMES HIS MIDLIFE CRISIS BY PLAYING COWBOY FOR A FEW DAYS CAVEAT EMPTOR CITY SLICKERS FANS READ BETWEEN THE LINES ON THE ADVERTISING COPY RON UNDERWOOD DID DIRECT BOTH MOVIES BUT HE DIDN'T WRITE EITHER OF THEM CITY SLICKERS WITHOUT JOKES WOULD HAVE BEEN ONE BORING CATTLE DRIVE AND THE JOKES WERE WRITTEN BY BABALOO MANDELL AND LOWELL GANZ NEITHER OF WHOM HAD ANYTHING TO DO WITH HEART AND SOULS IN FACT IF YOU'D LIKE TO GET SOME SENSE OF WHAT CITY SLICKERS MIGHT HAVE BEEN WITH RON UNDERWOOD DIRECTING BUT WITHOUT A SCRIPT BY MESSRS MANDELL AND GANZ GO SEE HEART AND SOULS I RECOMMEND THIS EXPERIMENT ONLY TO PEOPLE WHO ADORE BAD MOVIES THE KIND OF PEOPLE WHO THINK SLIVER CLIFFHANGER AND THE LAST ACTION HERO WOULD MAKE A REALLY NEAT TRIPLE BILL IN OTHER WORDS HEART AND SOULS IS A VERY BAD MOVIE THERE WAS NO SAFETY IN NUMBERS IN THIS CASE FOUR SCREENWRITERS WERE ENLISTED TO CONCOCT THIS QUADRUPLE DISASTER THEIR NAMES FOR THE RECORD BRENT MADDOCK SS WILSON ERIK HANSEN AND GREGORY HANSEN HEART AND SOULS IS MUCH MORE ANNOYING THAN BAD ESCAPIST JUNK BECAUSE IT'S TRYING SO HARD TO BE MEANINGFUL THE CHARACTERS ARE EMOTIONAL HUSTLERS THEY DON'T EARN OUR TEARS THEY DEMAND THEM HERE'S THE PREMISE ON A RAINY NIGHT IN SAN FRANCISCO IN 1959 FOUR PEOPLE BOARD A BUS JUST AS A MAN AND HIS PREGNANT WIFE ARE HEADING FOR THE HOSPITAL WHILE LEERING AT A WOMAN DRIVING BY THE BUS DRIVER SWERVES OUT OF CONTROL BARELY AVOIDING THE CAR CONTAINING THE MAN AND HIS PREGNANT WIFE THEN THE OUTOFCONTROL BUS CATAPULTS OFF AN OVERPASS THE DRIVER AND HIS FOUR PASSENGERS DIE THE PREGNANT WOMAN IN THE CAR WHO WASN'T HIT GIVES BIRTH TO A BABY BOY THE BUS DRIVER DISAPPEARS FOR THE NEXT HOUR OR SO WHICH COVERS ABOUT 30 YEARS UNFORTUNATELY THE OTHER FOUR PASSENGERS STICK AROUND HAVING TRANSMOGRIFIED INTO SPIRITS WHO REFUSE TO VANISH THEY SPEND THE FIRST PART OF THE MOVIE GOOGOOING AT THE BABY WHO WAS BORN JUST AS THEY DIED HE'S THE ONLY PERSON WHO CAN ACTUALLY SEE THEM AND HE FINDS THEM QUITE AMUSING TODDLERS ARE EASY TO PLEASE AS HE GROWS OLDER HIS CONVERSATIONS WITH INVISIBLE PEOPLE WORRY HIS PARENTS AND HIS FATHER WANTS TO SEND HIM TO A SHRINK THE SPIRITS DON'T WANT TO CAUSE THE BOY MISERY SO THEY BECOME INVISIBLE TO HIM AS WELL THE BABY GROWS UP TO BE ROBERT DOWNEY JR THE FILM TELLS US THAT WITHOUT THE POSITIVE INFLUENCE OF THE DEAD STRANGERS FROM THE BUS HE HAS GROWN UP TO BE THE WORST THING PEOPLE IN HOLLYWOOD CAN IMAGINE A BANKER WE ALSO LEARN THE REASON THE FOUR SPIRITS HAVE BEEN DOGGING HIM ALL THESE YEARS HE IS SUPPOSED TO HELP THEM ACCOMPLISH THE ONE THING THEY WISH THEY'D DONE BEFORE THEY DIED OF COURSE IN THIS KIND OF FEELGOOD MOVIE THERE IS ANOTHER CONNECTION BETWEEN THEM THE DEAD AND HIM THE LIVING THIS IS THE PROFOUND PART THE REAL PURPOSE OF THEIR PROLONGED AFTERLIFE IS TO HELP MR DOWNEY BECOME THE NICE GUY HE'S MEANT TO BE THIS KIND OF SPIRITUAL HOCUSPOCUS HAS PERIODICALLY OCCURRED TO FILM MAKERS OVER THE YEARS IN FILMS RANGING FROM JOSEPH MANKIEWICZ'S CHARMING 1947 PICTURE THE GHOST AND MRS MUIR TO JERRY ZUCKER'S LUDICROUS BUT POPULAR 1990 PICTURE GHOST ANOTHER POIGNANTLY COMIC VARIATION ON THE THEME WORKED JUST FINE IN HEAVEN CAN WAIT THE 1978 WARREN BEATTY REMAKE OF HERE COMES MR JORDAN NOT TO BE CONFUSED WITH THE 1943 ERNST LUBITSCH COMEDY OF MANNERS IN HEART AND SOULS EVERYTHING IS COMPLICATED BY THE MULTIPLICITY OF GHOSTLY PRESENCES NONE OF WHOM ARE PARTICULARLY CHARMING OR INTERESTING FOUR GHOSTS WOULD PROBABLY BE THREE TOO MANY IN THE BEST OF CASES BUT ESPECIALLY WITH BLAND SPIRITS LIKE THESE BOTH TOO MUCH AND TOO LITTLE IS GOING ON ALL THE TIME THE FILM MAKERS INSIST ON MAKING BELIEVE THESE SPIRITS ARE TERRIBLY IDIOSYNCRATIC SO THE SCRIPT REQUIRES MR DOWNEY AT VARIOUS POINTS IN THE MOVIE TO BE INHABITED BY EACH ONE OF THEM GIVING HIM A CHANCE TO MIMIC HIS FELLOW PLAYERS HE DOES THIS WELL LEADING ME TO CONCLUDE THAT THIS MOVIE SHOULD ONLY BE SEEN BY THAT SELECT GROUP OF CINEASTES WHO HAVE BEEN EAGERLY WAITING FOR THE CHANCE TO WATCH MR DOWNEY IMPERSONATE CHARLES GRODIN ALFRE WOODARD KYRA SEDGWICK AND TOM SIZEMORE PLAYING BORING CHARACTERS AFTER THE VAGUE PRETENSIONS OF HEART AND SOULS I MAY HAVE BEEN EASY PREY FOR STRAIGHTFORWARD LOW COMEDY WHATEVER THE REASON I FOUND MYSELF GIGGLING MANY TIMES DURING THE NEW MEL BROOKS MOVIE ROBIN HOOD MEN IN TIGHTS I EVEN LAUGHED WHEN A HANGMAN TELLS THE MAN HE'S ABOUT TO HANG NO NOOSE IS GOOD NOOSE WITHOUT HEART AND SOULS I MIGHT HAVE DISMISSED ALL THE SILLY BELCH 'N BOOBY JOKES AS HUMOR ONLY A 12YEAROLD BOY COULD LOVE THE 12YEAROLDS IN THE THEATER WERE LAUGHING HYSTERICALLY BUT I ADMIT IT I LAUGHED VIDEO TIP MR DOWNEY HAS FOUND HIS WAY TO A SIZABLE NUMBER OF LOUSY MOVIES LIKE CHANCES ARE WEIRD SCIENCE AND FIRSTBORN YET HIS TALENT MANAGES TO REVEAL ITSELF FOR EXAMPLE HIS IMPRESSIVE IMITATION OF CHARLIE CHAPLIN IN CHAPLIN WAS OVERSHADOWED BY THE GENERAL TEDIUM OF THE MOVIE HE DID APPEAR IN ONE PICTURE THAT WAS AS ENTERTAINING AS HIS PERFORMANCE A SPOOF OF DAYTIME TELEVISION CALLED SOAP DISH 9308120058 930812 COUNTERPOINT CAP GAINS SMALL CHANGE TO SMALL STARTUPS BY HUGH AARON AN ENTREPRENEUR'S DECISION TO GO INTO BUSINESS HAS LITTLE TO DO WITH A BUSINESS'S FUTURE VALUE IT HAS EVERYTHING TO DO WITH THE BUSINESS'S POTENTIAL FOR FUTURE EARNINGS I MAINLY WENT INTO BUSINESS TO CONTROL MY DESTINY I WAS 42 THEN ABOUT THE TIME THAT MOST MEN AND WOMEN TAKE THEIR FINAL LEAP INTO RISK I ALSO WANTED TO MAKE MONEY BUT I DIDN'T THINK BEING IN BUSINESS WOULD MAKE ME RICH I SAW THAT MOST SMALL BUSINESSMEN SIMPLY MADE A GOOD LIVING THOSE WERE HEADY DAYS SO FULL OF OPTIMISM AND ENORMOUS ENERGY THE CAPITAL GAINS TAX WAS THE LAST THING I GAVE THOUGHT TO IT SEEMED IRRELEVANT BECAUSE BACK THEN IT NEVER OCCURRED TO ME THAT I MIGHT SELL THE BUSINESS ONE DAY MY MOTIVATION WAS SIMPLY TO MAKE A PROFIT AND DEVELOP A TRACK RECORD SUFFICIENT TO ATTRACT A LENDER TO HELP MAKE THE BUSINESS GROW IN SHORT I WAS DRIVEN BY THE CLASSIC URGE OF EVERY ENTREPRENEUR TO CREATE SOMETHING SUBSTANTIAL FROM NOTHING AND NOT THE KILLING I MIGHT MAKE IN THE MISTY FUTURE INDEED I THOUGHT MY BUSINESS AND I MIGHT CONTINUE TOGETHER FOR A GOOD 30 YEARS BY THEN MY YOUNG SON OR DAUGHTERS WOULD BE CAPABLE OF TAKING IT OVER ANYWAY WHO KNEW OR CARED WHAT THE CAPITAL GAINS TAX MIGHT BE 30 YEARS HENCE HOW CRUCIAL THEN WOULD A LOWER CAPITAL GAINS TAX BE TO REVIVING THE ECONOMYMOTIVATING INVESTMENT AND RESTORING GROWTH ESPECIALLY AS IT APPLIES TO SMALL BUSINESS TAXES SALES WAGE AND REAL ESTATE TAXES EXCEPTED ARE OF LITTLE CONCERN TO THE ENTREPRENEUR STARTING OUT A CHANGE IN THE CAPITAL GAINS TAX ONE WAY OR THE OTHER WOULD BE IRRELEVANT TO HIS DECISION NEW COMPANIES RARELY MAKE MONEY DURING THE EARLY YEARS EVEN WHEN A COMPANY TURNS THE CORNER IT HAS A REPRIEVE AS ITS LOSSES ARE CARRIED FORWARD TO OFFSET GAINS REDUCING OR NULLIFYING TAXES BUT ONCE THAT PROCESS IS COMPLETE AND THE INFLOW OF PROFITS IS ASSURED A COMPANY IS READY TO RESUME A STEEPER GROWTH CURVE AT THIS POINT JUST WHEN EVERY CENT OF CASH FLOW IS NEEDED FOR EXPANSION TAXES BECOME ONEROUS WHEN MY COMPANY NEEDED CASH SO IT COULD TAKE OFF IT WAS PAINFUL HAVING TO SHARE ITS PROFITS WITH THE GOVERNMENT DURING A SMALL BUSINESS'S GROWTH STAGE THE INCOME TAX IS PIVOTAL THE BUSINESS OWNER MUST WRESTLE WITH IT FOR DECADES THE CAPITAL GAINS TAX IS A ONESHOT DEAL COMING AT THE VERY END IF AT ALL THE REALITY OF STARTING AND GROWING A SMALL BUSINESS FAILS TO SUPPORT THE PRECEPT THAT REDUCING OR ELIMINATING THE CAPITAL GAINS TAX PROMOTES ALL STARTUPS AND GROWTH THAT TAX APPLIES MORE TO FINANCIERS VENTURE CAPITALISTS AND INVESTORS IN THE STOCK MARKET BUT THE SIGNIFICANT GROWTH AND EMPLOYMENT IN OUR ECONOMY DERIVES FROM SMALL BUSINESSES WHOSE SOURCES OF CAPITAL ARE MOSTLY BANKS AND VARIOUS LENDING AGENCIES NOT SILENT INVESTORS TO ENCOURAGE STARTUPS AND SUBSEQUENT GROWTH RELIEVE BUSINESSES OF THEIR INCOME TAX BURDEN DON'T TAX PROFITS THAT CAN AND WILL BE REINVESTED IN GROWTH BETTER YET ELIMINATE THE CORPORATE TAX ENTIRELY INSTEAD TAX THE OWNERS' MANDATORY DIVIDEND INCOME PROFITS LEFT AFTER REINVESTMENT AT INDIVIDUAL INCOME TAX RATES NO DOUBT THIS WILL REQUIRE COUNTERING THE MORAL OUTRAGE OF A PUBLIC CONDITIONED NOT TO IDENTIFY THE CORPORATE WELFARE WITH ITS OWN JUST AS MANY CORPORATIONS ARE GUILTY OF THE SAME DESTRUCTIVE THINKING IN REVERSE HAD MY COMPANY HAD THE CHOICE EITHER TO REINVEST OR TO PAY INCOME TAXES THEN AT 50 WE WOULD HAVE CHOSEN THE FIRST OPTION HANDS DOWN TO A LIMITED EXTENT THIS IS THE PRINCIPLE UNDERLYING AN EMPLOYEE STOCK OWNERSHIP PLAN OF WHICH WE TOOK ADVANTAGE LATER ON WE COULD HAVE INNOVATED MORE GROWN FASTER AND HIRED MORE PEOPLE INSTEAD BY SAPPING OUR WORKING AND INVESTMENT CAPITAL THE HIGH TAX SERVED AS A DISINCENTIVE AND HURT OUR MORALE ALTHOUGH THE CAPITAL GAINS TAX WAS IRRELEVANT WHEN I WENT INTO BUSINESS AND WHILE RUNNING IT IT WAS HIGHLY RELEVANT 20 YEARS LATER WHEN CONTRARY TO MY ORIGINAL VISION I SOLD THE COMPANY THE RATE WAS ONLY 20 AT THE TIME HAD IT BEEN AT CURRENT RATES OR HIGHER I'D HAVE FELT TRAPPED AS WITH AN EXCESSIVE INCOME TAX A HIGH CAPITAL GAINS TAX IS DEMORALIZING TO THE INDIVIDUAL TO HAVE A SUBSTANTIAL PORTION OF ONE'S WEALTH ACCUMULATED OVER THE YEARS BY DINT OF HARD WORK AND PERSONAL RISK TAXED AWAY IS HARD TO TAKE UNDER THOSE CIRCUMSTANCES I'D NOT HAVE SOLD UNLESS FOR A TAXLESS STOCK TRANSACTION IN OTHER WORDS IF THE CAPITAL GAINS TAX HAD BEEN AS HIGH AS 50 I WOULD STILL HAVE STARTED IN BUSINESS IT WAS A CONSIDERATION ONLY IN THE DECISION TO SELL OR NOT TO SELL A DECISION THAT HAS LITTLE IMPACT ON THE ECONOMY ONE WAY OR ANOTHER THUS THE INCOME TAX CAN HELP A BUSINESS EXPAND OR CAUSE IT TO STAGNATE THE CAPITAL GAINS TAX CAN MAKE CASHING IN A LIFETIME OF HARD WORK WORTHWHILE OR NOT BUT CASHING IN IS ONLY ONE OF SEVERAL OPTIONS AND IS GENERALLY NOT A CONDITION FOR GOING INTO BUSINESS WITH THESE FACTS AT HAND IS IT SO DIFFICULT FOR THE GOVERNMENT TO KNOW WHAT TO DO TO BRING PROSPERITY BACK TO OUR NATION MR AARON IS THE AUTHOR OF BUSINESS NOT AS USUAL STONES POINT PRESS 9308120057 930812 LEISURE & ARTS CRITIQUE WHY SPILL VITRIOL ON SUCH A SQUALID SCREED BY RAYMOND SOKOLOV RETURNING TO THIS COUNTRY FROM THE OLD WORLD I FOUND EVERYBODY TALKING EXCITEDLY AND WRINGING HANDS OVER THE SAME NATIONAL DISASTER NOT THE MIDWESTERN DELUGE NOT AIDS NOT OUR PASSIVE COMPLICITY IN THE BOSNIAN BLOODBATH NO EVERYBODY I KNEW WAS DISTRAUGHT OVER A BOOK ABOUT TEDDY KENNEDY THIS BOOK BY ALL ACCOUNTS CONTAINS NOT A SINGLE NEW FACT OR DAMAGING ALLEGATION ABOUT THE MASSACHUSETTS SENATOR ANYONE WHO HAS NOT BEEN IN A COMA FOR THE LAST 30 YEARS ALREADY KNEW THAT MR KENNEDY WAS NEITHER PERFECTLY CHASTE NOR ABSTEMIOUS NOR TRUTHFUL THEY ALSO KNEW THAT OTHER MEMBERS OF HIS FAMILY HAD STOOPED TO CONQUER WEALTH AND PUBLIC OFFICE IT WAS FURTHER THE CASE THAT JOE MCGINNISS IN THE LAST BROTHER THE RISE AND FALL OF TEDDY KENNEDY THE NATIONAL DISASTER IN QUESTION HAD EVIDENTLY BORROWED HEAVILY FROM PREVIOUS BOOKS OF A HIGHLY RESPECTABLE NATURE AND THAT THE MOST HEINOUS ANTIKENNEDY CHARGE HE BROUGHT TO BEAR ON HIS OWN HOOK A SORDID MAFIA COMPACT WAS HYPOTHETICAL ON ITS FACE AND EASILY DISCREDITED AS FLAMING FICTION WHY THEN AS THE EUROPEAN MONETARY SYSTEM COLLAPSED AND 300000 LEBANESE WERE SENT FLEEING THEIR HOMES BY ISRAELI BOMBARDMENT DID RESPONSIBLE PEOPLE IN THIS COUNTRY DEVOTE THEIR LIMITED ENERGIES TO CATERWAULING AGAINST A BOOK THAT HAS HARMED NO ONE AND WHICH WAS UNIVERSALLY DISMISSED BEFORE PUBLICATION WHY DID STALWARTS OF BOOKCHAT SALLY FORTH TO EVISCERATE MR MCGINNISS AS IF HE HAD WRITTEN MEIN KAMPF HERE IS WHAT JONATHAN YARDLEY VENERABLE BOOK CRITIC OF THE WASHINGTON POST HAD TO SAY ABOUT THE LAST BROTHER NOT MERELY IS IT A TEXTBOOK EXAMPLE OF SHODDY JOURNALISTIC AND PUBLISHING ETHICS IT IS ALSO A GENUINELY UNRELIEVEDLY ROTTEN BOOK ONE WITHOUT A SINGLE REDEEMING VIRTUE AN EMBARRASSMENT THAT SHOULD BRING NOTHING EXCEPT SHAME TO EVERYONE ASSOCIATED WITH IT MR YARDLEY WENT ON TO FOAM THAT THE LAST BROTHER IS A REPREHENSIBLE EXERCISE IN CHARACTER ASSASSINATION A MOCKERY OF EVEN THE MOST MINIMAL STANDARDS BY WHICH BIOGRAPHY IS WRITTEN A CYNICAL AND AVARICIOUS SLOP IN THE TROUGH OF CHEAP PROFIT I WENT OUT AND GOT THE BOOK IMMEDIATELY IT IS INDEED A TERRIBLE BOOK BUT SO ARE MOST OF THE 40000 NEW TITLES A PERSON LIKE MR YARDLEY IS SUPPOSED TO SURVEY EVERY YEAR WHY DID THIS ONE ELICIT SUCH A SHRILL SCREAMING DENUNCIATION WHY DIDN'T MR YARDLEY MOUNT THIS KIND OF ATTACK AGAINST ONE OF THE NUMEROUS UNSCRUPULOUS DIET BOOKS THAT PREY ON UNHAPPY PEOPLE WITH KNOWINGLY FALSE INFORMATION THAT CAN ENDANGER THEIR HEALTH AND LIVES WHERE WAS MR YARDLEY WHEN THE LATEST QUACK GETRICHQUICK BOOK URGED PEOPLE TO THROW AWAY THEIR LIFE SAVINGS I BET HE NEVER CALLED ANY OF THEM PIG SLOP OR BY A WIDE MARGIN THE WORST BOOK I HAVE REVIEWED IN NEARLY THREE DECADES I'M CERTAINLY NOT SUGGESTING THAT HE OR THE OTHER OUTRAGED REVIEWERS OF MR MCGINNISS'S SQUALID SCREED HAVEN'T ALSO FOUGHT GOOD FIGHTS AGAINST OTHER BAD BOOKS IT IS THE VITRIOL THE SPEWING RHETORIC THAT MAKES ME WONDER WHY NOW WHY THIS BOOK IN PARTICULAR AND AT SUCH FEVER PITCH WHEN SO MANY OTHER VILE PROFITSNUFFLING BOOKS COME OUT WITH SUCH REGULARITY AND HAVE FOR YEARS AND WILL AGAIN WHAT IN OTHER WORDS SET LOOSE THIS FLOOD OF SAVAGE INDIGNATION IT CANNOT JUST BE THE WHOLESALE TAKING OF MATERIAL FROM OTHER WRITERS AFTER ALL DOZENS OF RECENT BOOKS HAVE BEEN EXPOSED FOR EQUALLY SERIOUS PLAGIARISM AND NO ONE STARTED THIS KIND OF CAMPAIGN OF PUBLIC ASSASSINATION AGAINST ALEX HALEY OR DM THOMAS FINGERWAGGING YES BUT RED HOT TRUNCHEONS NO IT IS ALSO A BIT LATE IN THE GAME TO BE THUNDERING SELFRIGHTEOUSLY AGAINST RECONSTRUCTED DIALOGUE IN BIOGRAPHY OR HISTORY I CAN WELL REMEMBER WHEN WH AUDEN TOLD ME HOW SHOCKED HE WAS BY DAVID HALBERSTAM'S LONG SEAMLESS QUOTATIONS IN THE BEST AND THE BRIGHTEST MANY SOUNDING LIKE THE AUTHOR'S OWN VOICE SINCE THAT DAY MORE THAN 20 YEARS AGO PERFECTLY RESPECTABLE WRITERS HAVE RECONSTRUCTED DIALOGUE AND SOME HAVE FABRICATED IT THIS IS WRONG UNLESS IT IS DONE IN FICTION OR IN A PLAY LET US SAY BY WILLIAM SHAKESPEARE RECONSTRUCTING AND REINVENTING HISTORY BUT MR MCGINNISS IF HE IS LYING IS HARDLY THE FIRST OR THE WORST AFTER ALL HIS SIN AT MOST IS PUTTING TEDDY AND THE OTHER KENNEDYS IN AN UNJUSTIFIABLY BAD LIGHT WHAT ABOUT PEOPLE WHO WRITE BOOKS DENYING THE HOLOCAUST OR ACCUSING GENERAL EISENHOWER OF CALLOUSLY ELIMINATING THOUSANDS AND THOUSANDS OF GERMAN PRISONERS OF WAR AFTER VE DAY DOES JOE MCGINNISS BELONG IN A DARKER DEEPER CORNER OF HELL THAN THESE SINNERS AGAINST INTELLECTUAL HONESTY AND BASIC MORAL STANDARDS I WOULD LIKE TO THINK THAT THE AMAZING OUTBURST AGAINST HIS BOOK IS JUST AN ERROR OF JUDGMENT INDUCED BY THE CELEBRITY OF BOTH THE AUTHOR AND HIS SUBJECT BUT THAT CAN'T BE ENOUGH OF AN EXPLANATION EITHER THERE IS OF COURSE THE KENNEDY FAMILY TRUTH SQUAD WORKING TO UNDERMINE ANY BOOK THAT ATTACKS THEM AND THEIRS BUT THEIR PREVIOUS ATTEMPTS TO BLITZ UNFRIENDLY AUTHORS HAVE NEVER BEEN MET WITH SUCH SUCCESS NO THE KEY TO THIS MYSTERY IS THAT THE OUTRAGE EMANATES FROM JOURNALISTS WHO THINK THAT BOOKS ESPECIALLY QUASIJOURNALISTIC BOOKS LIKE MR MCGINNISS'S ARE PUBLISHED WITH THE SAME SCRUPULOUS CARE FOR FACT AND ORIGINALITY OF THOUGHT AS QUALITY NEWSPAPERS AND MAGAZINES MR YARDLEY FOR EXAMPLE SPEAKS IN THE SAME BREATH ABOUT JOURNALISTIC AND PUBLISHING ETHICS WHEN THEY ARE IN PRACTICE AND INTRINSICALLY QUITE DIFFERENT UNLIKE AUTHORS OF BOOKS JOURNALISTS ARE NOT SMALL BUSINESSMEN REPORTING THE INCOME FROM THEIR LATEST WORK ON THE SELFEMPLOYMENT SCHEDULE OF THEIR TAX RETURN NOR DO THEY PROMOTE THEIR WORK ON NATIONAL MEDIA TOURS JOURNALISTS ARE PAID TO GIVE OBJECTIVE ACCOUNTS OF REALITY AND THE OWNERS OF NEWSPAPERS DO NOT HAVE TO GO OUT AND SELL EACH JOURNALIST'S LATEST ARTICLE AS A NEW PRODUCT EVEN ON THE NEWSSTAND A PAPER IS NOT A NEW PRODUCT BUT A NEW INSTALLMENT OF A WELLKNOWN PRODUCT MOSTLY PRESOLD THROUGH SUBSCRIPTIONS A BOOK IS ALWAYS A NEW PRODUCT AND ALTHOUGH THE PUBLIC AND EVEN BOOK REVIEWERS MAY WISH TO BELIEVE THAT BOOKS ARE UNDER SOME MORAL REQUIREMENT TO BE FAIR AND OBJECTIVE LIKE NEWSPAPERS THIS IS A CATEGORICAL MISTAKE SOME BOOKS ARE FAIR OTHERS ARE SNARES AND DELUSIONS DELIBERATELY CONCOCTED AND DELIBERATELY PUBLISHED AS SUCH AND IN RECENT YEARS EVEN MANY OF THE BEST HOUSES HAVE FOUND THEIR EDITORIAL TRADITIONS FENCED IN BETWEEN UNLITERARY CORPORATE OWNERS MR MCGINNISS'S PUBLISHER SIMON & SCHUSTER IS OWNED BY PARAMOUNT COMMUNICATIONS INC A MOVIE STUDIO/ENTERTAINMENT BEHEMOTH AND GIANT RETAIL BOOKSTORE CHAINS THAT IS WHY WE HAVE MANY BOOK REVIEWERS ALL BOOKS NEED TO BE VETTED BY A DISPASSIONATE READER PRECISELY BECAUSE THEY CAN BE ASSUMED TO BE JUNK UNLESS PROVEN VIRTUOUS THINK ABOUT IT 40000 TITLES EVERY YEAR HOW MANY CAN POSSIBLY BE WORTH SPENDING SEVERAL HOURS WITH HOW MANY ARE JUST SHODDY PIG SLOP THROWN OUT THERE IN THE VAIN HOPE OF CHEAP PROFIT FOR JOURNALISM THE ETHICAL STANDARD IS FAR HIGHER JOURNALISM'S ONLY TWO CLAIMS ARE ACCURACY AND FAIRNESS TO ATTEMPT TO APPLY THESE DISINTERESTED STANDARDS TO BOOK PUBLISHERS HAWKING ENTERTAINMENT OR PSEUDOJOURNALISM LIKE MR MCGINNISS'S MAKES NO SENSE BUT THE IMPULSE IS EASY TO UNDERSTAND MR YARDLEY AND YOU AND I WANT TO BELIEVE THAT A BOOK IS A SACRED OBJECT THAT IT IS A HIGHER FORM THAN THIS FISH WRAPPER IT SHOULD BE AND IT CAN BE BUT IT IS NOT THE NATURE OF THE BEAST 9308120056 930812 WEDNESDAY'S MARKETS DOW JUMPS TO RECORD BONDS GAIN INDUSTRIALS RISE 1062 TO A HIGH OF 358335 DOLLAR FINISHES MIXED BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL STRONG OVERSEAS STOCK MARKETS AND A SURGE IN SEMICONDUCTOR SHARES HELPED LIFT THE DOW JONES INDUSTRIAL AVERAGE TO ANOTHER RECORD BOND PRICES ROSE DRIVING LONGTERM INTEREST RATES TO YET ANOTHER 16YEAR LOW THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE JUMPED 1062 POINTS TO A RECORD 358335 AFTER RETREATING MODESTLY TUESDAY STANDARD & POOR'S 500STOCK INDEX ROSE 101 TO 45046 AND THE NASDAQ COMPOSITE INDEX GAINED 169 TO A RECORD 71877 TRADING STARTED ON AN UPBEAT NOTE AFTER SEVERAL EUROPEAN STOCK MARKETS RALLIED TO RECORD LEVELS ON HOPES OF FURTHER INTEREST RATE CUTS IN EUROPE THAT SUGGESTED TO SOME US INVESTORS THAT RATES WILL REMAIN LOW IN THE US TOO SEMICONDUCTORS LED THE US STOCK MARKET'S ADVANCE AFTER A TRADE INDUSTRY GROUP SAID TUESDAY THAT DEMAND IN JULY WAS STRONGER THAN EXPECTED JOSEPH BATTIPAGLIA CHIEF INVESTMENT STRATEGIST AT GRUNTAL & CO SAID SURGING SEMICONDUCTOR STOCK PRICES ARE A BULLISH SIGN FOR THE MARKET THESE STOCKS TEND TO LEAD THE MARKET SO THE DIRECTION THEY'RE SETTING IS FOR ANOTHER UP LEG MR BATTIPAGLIA SAID BUT HE CAUTIONED THAT WITH STOCK PRICES ALREADY AT HIGH LEVELS ANY FURTHER GAINS WILL BE MINIMAL HE THINKS THE INDUSTRIALS COULD TOP AT 3600 FOR THE YEAR MANY ANALYSTS BELIEVE GREATER GAINS WILL COME OVERSEAS YESTERDAY THE BRITISH STOCK MARKET CLIMBED 12 TO A RECORD AND FRENCH STOCKS WERE UP 13 ALSO TO A RECORD THE SPANISH AND SWEDISH STOCK MARKETS SURGED TO HIGHS FOR THE YEAR FOR THE SECOND TIME THIS WEEK FRANCE LOWERED A MONEY MARKET RATE LEADING INVESTORS TO EXPECT FUTURE CUTS IN MORE IMPORTANT INTEREST RATES FRENCH SHARES ALSO WERE BOOSTED BY A FRANC THAT GAINED AGAINST THE MARK WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 110 TO 11039 WHAT MARKETS ARE ASKING FOR IS LOWER RATES IN ORDER TO BOOST THE ECONOMY SAID FRANCOIS MARCHAL HEAD OF INTERNATIONAL EQUITY SALES AT BROKERS DELAHAYERIPAULT SA IN PARIS IN THE US BOND MARKET PRICES MOSTLY ROSE AFTER STRONG DEMAND AT THE TREASURY'S AUCTION OF 1103 BILLION IN 10YEAR NOTES THE SALE PRODUCED AN AVERAGE YIELD OF 578 THE TREASURY WILL SELL 11 BILLION OF NEW 30YEAR BONDS TODAY EVEN WITH LONGTERM RATES AT 16YEAR LOWS ROBERT N STREED SENIOR INVESTMENT COUNSELOR AT NORTHERN TRUST CO IN CHICAGO EXPECTS FURTHER DECLINES IT WOULDN'T SURPRISE ME IF LONGTERM RATES MADE A RUN AT 6 HE SAID THE DOLLAR SANK TO A POSTWORLD WAR II LOW AGAINST THE YEN AFTER JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA REJECTED US SUGGESTIONS ON HOW TO CUT JAPAN'S HUGE TRADE SURPLUS IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2661 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1059 ISSUES ROSE AND 885 FELL THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17220 MARKS AND 10364 YEN COMPARED WITH 17170 MARKS AND 10470 YEN TUESDAY 9308120055 930812 HEALTH REQUIRED LABELS FOR POULTRY MEAT UNVEILED BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE AGRICULTURE DEPARTMENT UNVEILED SAFEHANDLING LABELS THAT MUST APPEAR ON ALL RAW MEAT AND POULTRY PRODUCTS SOLD IN THE US STARTING IN MIDOCTOBER THE LABELS WHICH WILL BE CARRIED BY HUNDREDS OF THOUSANDS OF PRODUCTS SOLD EVERY DAY ARE THE GOVERNMENT'S LATEST AND MOST SWEEPING RESPONSE TO THE DEATHS AND ILLNESSES CAUSED BY THE OUTBREAK OF TAINTED MEAT IN THE WEST THIS YEAR THE LABELS GIVE RECOMMENDATIONS ON COOKING HANDLING REFRIGERATION AND THAWING THEY ALSO WARN OF POSSIBLE ILLNESS FROM BACTERIA CONTAMINATION IF THE PRODUCT IS MISHANDLED OR COOKED IMPROPERLY WE HAVE THE SAFEST MEAT SUPPLY IN THE WORLD BUT THERE IS MUCH ROOM FOR IMPROVEMENT SAYS AGRICULTURE SECRETARY MIKE ESPY AT A NEWS CONFERENCE TO RELEASE THE LABELSONE AIMED AT CONSUMERS AND A SLIGHTLY DIFFERENT VERSION FOR COMMERCIAL USERSHE WAS ACCOMPANIED BY THE PARENTS OF A CHILD WHO DIED IN THE OUTBREAK HE SAYS WORDING ON THE NEW CONSUMER LABEL CLEARLY LAYS OUT FOR ALL CONSUMERS AND ALL PARENTS WHAT TO DO TO PREVENT CONTAMINATION IN GENERAL THE LABELS DREW FAVORABLE RESPONSES FROM INDUSTRY AND CONSUMER ORGANIZATIONS BUT SOME CONSUMER GROUPS COMPLAINED THAT THEY GIVE INSUFFICIENT INSTRUCTION ON SAFE COOKING METHODS THE LABEL SHOULD OFFER CONSUMERS MORE OF A GUIDELINE THAN JUST COOK THOROUGHLY' INSISTS CAROLINE SMITH DE WAAL LEGAL AFFAIRS DIRECTOR AT PUBLIC VOICE FOR FOOD AND HEALTH POLICY THIS MEANS MANY THINGS TO MANY PEOPLE JEREMY RIFKIN PRESIDENT OF BEYOND BEEF WHICH HAD SUED THE DEPARTMENT TO FORCE IT TO PROPOSE LABELS BY THIS WEEK CALLS THE AGENCY'S ACTION A MAJOR VICTORY FOR CONSUMERS AND THE PUBLIC INTEREST COMMUNITY AND COMPARES IT TO THE DECISION TO REQUIRE WARNINGS ON CIGARETTE LABELS BUT HE WARNS THAT OUR ATTORNEYS WILL BE BACK IN COURT IF THE AGENCY DOESN'T AGREE TO STRENGTHEN THE COOKING INSTRUCTION THE DEPARTMENT WILL SEEK PUBLIC COMMENT ON THE LABELS FOR 30 DAYS THE REQUIREMENTS WILL TAKE EFFECT IN 60 DAYS BEYOND BEEF A WIDERANGING COALITION OF GROUPS THAT SEEK TO REDUCE BEEF CONSUMPTION AMONG OTHER GOALS SAYS IT WILL PUSH FOR INSTRUCTIONS TO COOK POULTRY AND MEAT TO AN INTERNAL TEMPERATURE OF 160 DEGREES AND TO COOK MEAT UNTIL IT'S NO LONGER RED OR PINK AGRICULTURE DEPARTMENT OFFICIALS NOTING THAT DIFFERENT PRODUCTS REQUIRE DIFFERENT COOKING METHODS SAY THAT MORE ELABORATE INSTRUCTION WOULD BE TOO CONFUSING A SPOKESMAN FOR SECRETARY ESPY HOWEVER SAYS THE AGENCY IS EAGER TO WORK WITH INDUSTRY TO COME UP WITH CUSTOMIZED COOKING INSTRUCTIONS TO REPLACE THE COOK THROUGHLY LINE FOR SPECIFIC PRODUCTS THE AMERICAN MEAT INSTITUTE EXPRESSED SUPPORT FOR THE LABEL REQUIREMENT THOUGH IT INSISTS THESE FOODS ACCOUNT FOR ONLY ONEFOURTH OF REPORTED FOODBORNE ILLNESS OUTBREAKS IN ADDITION THE GROUP SAYS IT WILL PUSH FOR ADDITIONAL TIME TO DESIGN PRODUCE AND DISTRIBUTE THE NEW LABELS THROUGH THE PRODUCTION CHAIN INSTITUTE OFFICIALS SAY A ROUGH ESTIMATE IS THAT THE INDUSTRYWIDE COST OF THE REQUIREMENT WILL BE ABOUT 135 MILLION ANNUALLY THE LABELS WHICH WERE DEVELOPED WITH HELP OF FOCUS GROUPS STATE THAT THE PRODUCTS HAVE UNDERGONE SAFETY INSPECTION BUT NONETHELESS RECOMMEND FOUR SAFEHANDLING INSTRUCTIONS CONSUMERS ARE URGED TO THAW FOOD IN REFRIGERATORS OR MICROWAVE OVENS TO KEEP RAW MEAT OR POULTRY SEPARATE FROM OTHER FOODS AND TO WASH HANDS WORK SURFACES AND UTENSILS AFTER TOUCHING RAW FOOD TO COOK THOROUGHLY AND TO REFRIGERATE LEFTOVERS WITHIN TWO HOURS DRAWINGS OF A REFRIGERATOR A BAR OF SOAP A FRYING PAN AND A CLOCK ACCOMPANY THE INSTRUCTIONS SLIGHTLY DIFFERENT LABELS WILL BE REQUIRED FOR FOOD DESTINED FOR RESTAURANTS OR INSTITUTIONS ALL DOMESTIC AND IMPORTED RAW AND PARTLY COOKED MEAT AND RAW POULTRY ARE INCLUDED THE INSTRUCTIONS MUST APPEAR ON THE PRINCIPAL DISPLAY PANEL OR THE INFORMATION PANEL OF EACH PACKAGE LETTERING WILL HAVE TO BE AT LEAST 1/16TH OF AN INCH HIGH THERE IS NO EXEMPTION FOR SMALL BUSINESS COMPANIES THAT FAIL TO COMPLY WITH THE LABELING REQUIREMENT FACE POTENTIAL SEIZURE OF THEIR PRODUCTS OR FINES EUGENE BRANSTOOL ASSISTANT AGRICULTURE SECRETARY FOR MARKETING AND INSPECTION SERVICES DESCRIBES THE LABELING RULE AS THE CENTERPIECE OF A BROAD CONSUMEREDUCATION CAMPAIGN HE PREDICTS THAT FOOD SAFETY WILL BE A FOCUS OF THE 1990S IN MUCH THE SAME WAY THAT AUTOSAFETY AND ENVIRONMENTAL AWARENESS WERE THE FOCUS OF EARLIER DECADES HE SAYS THAT THE DEATHS OF SEVERAL PEOPLE IN THE PAST FOUR OR FIVE WEEKS FROM SPORADIC OUTBREAKS OF THE SAME BACTERIA THAT CAUSED THE EARLIER DEATHS AND ILLNESS UNDERSCORE THE NEED FOR INCREASED AWARENESS OF SAFE FOODHANDLING TECHNIQUES THE AGRICULTURE DEPARTMENT WILL PUSH ITS SAFEHANDLING MESSAGE IN SPEECHES AND INTERVIEWS AS WELL AS IN BULLETINS THAT GO OUT OVER ITS COOPERATIVE EXTENSION SERVICE IT WILL ALSO ENCOURAGE GROCERY STORES TO FEATURE THE INSTRUCTIONS IN PAMPHLETS AND STORE DISPLAYS THE AMERICAN MEAT INSTITUTE SAYS IT HAS ALREADY SENT OF HUNDREDS OF THOUSANDS OF BROCHURES TO STORES AND FOODSERVICE ESTABLISHMENTS NATIONWIDE AMONG OTHER STEPS TO COMBAT CONTAMINATION THE DEPARTMENT HAS INCREASED THE NUMBER OF MEAT INSPECTORS CRACKED DOWN ON PRODUCTION PLANTS THAT WEREN'T COMPLYING WITH HEALTH AND SAFETY RULES AND ACCELERATED EFFORTS TO DEVELOP RAPID MICROBIOLOGICAL TESTS TO DETECT FOODBORNE PATHOGENS IN THE COMING MONTHS THE AGENCY PLANS TO PROPOSE RULES REQUIRING THE INDUSTRY TO FOLLOW A SYSTEM OF QUALITY CONTROLS AT VARIOUS CHECKPOINTS ALONG THE PRODUCTION CHAIN 9308120054 930812 REVIEW & OUTLOOK EDITORIAL TAKE IT OUTSIDE A JURY IN GALVESTON TOOK LESS THAN THREE HOURS TUESDAY TO LAUGH OFF THE ALLEGATION THAT BOB CRANDALL HAS BEEN SECRETLY PLOTTING TO TURN AMERICAN AIRLINES INTO AEROFLOT NOW MAYBE WE CAN GET ONTO THE QUESTION OF WHY NOBODY IN THE AIRLINE BUSINESS MAKES ANY MONEY ONE BIG REASON IS THAT THE INDUSTRY'S EVOLVING SHAKEOUT KEEPS GETTING SHORTCIRCUITED INTO VENUES LIKE JUDGE SAM KENT'S COURTROOM THIS UNDOUBTEDLY SUITS THE INDUSTRY'S PERENNIAL WEAK SISTERS MR CRANDALL'S CHIEF ACCUSER WAS CONTINENTAL AIRLINES WHICH HAS MADE A CAREER OF SURVIVING VIA THE LEGAL SYSTEM IT'S SPENT THE PAST 10 YEARS DOING TOUCHANDGOES IN THE BANKRUPTCY COURTS SHAKING OFF DEBTS AND LABOR CONTRACTS WHENEVER THEY BECOME INCONVENIENT MR CRANDALL WHO HAS BEEN A NOISY CRITIC OF THE CHAPTER 11 BABIES MUST HAVE SAVORED THE IRONY BETWEEN TRIPS TO THE WITNESS STAND WIELDING THE SPEAR FOR NORTHWEST AIRLINES MR CRANDALL'S OTHER ACCUSER WAS THE KING OF TEXAS TORTS JOE JAMAIL HE'S THE HOUSTON TRIAL LAWYER WHO BECAME AN OVERNIGHT PLUTOCRAT AFTER PERSUADING A TEXAS JURY TO AWARD PENNZOIL 11 BILLION FOR ITS HURT FEELINGS IN THE TEXACOGETTY MERGER IN TEXAS THEY ELECT THEIR JUDGES ALONG WITH THE COUNTY DOG CATCHER THE GIST OF MR JAMAIL'S CASE WAS THAT MR CRANDALL HAD BEEN UP TO SOMETHING MEAN AND NASTY WHEN HE LAUNCHED VALUEPRICING LAST YEAR WHEN THE OTHER AIRLINES STUCK WITH THE OLD HABIT OF TARGETING DISCOUNTS AT ONEEYED LITHUANIANS WHO STAY OVER SATURDAY NIGHT MR CRANDALL SLASHED FARES 50 AND NOBODY MADE A DIME ALL SUMMER MR JAMAIL SAYS IT WAS A CRUEL PLOT BY MR CRANDALL TO BLAST THE COMPETITION TO SMITHEREENS AND THEN VIOLATE THE PUBLIC AT HIS LEISURE THE SUPREME COURT RECENTLY OBSERVED THAT PREDATORY PRICING SCHEMES ARE INHERENTLY IMPLAUSIBLE AND THE TEXAS JURY AGREED EVEN THOUGH THE TEXAS FIFTH CIRCUIT IS NOTORIOUS FOR ANTITRUST VIEWS STUCK IN THE PALEOLITHIC AGE NORTHWEST AND CONTINENTAL SET OUT WITH HAPPY VISIONS OF 3 BILLION IN TREBLE DAMAGES BEING TRANSFERRED FROM MR CRANDALL'S BALANCE SHEET TO THEIR OWN SURE BEATS TRYING TO OUTFLY A COMPETITOR IN THE MARKETPLACE THE REAL DEFENDANT OF COURSE WAS DEREGULATION EVEN THOUGH A FREE MARKET IN CAT FOOD OR HAIRCUTS HASN'T LED TO MONOPOLY THE POLITICAL CLASSES STILL CAN'T BELIEVE THAT WITH THEIR JACKBOOT OFF THE INDUSTRY'S NECK THE AIRLINES WON'T CONGEAL INTO ONE ABUSIVE MEGACARRIER THEIR BUREAUCRATIC MINDS ARE ESPECIALLY FLUMMOXED BY THE COMPUTERIZED WIZARDRY THAT ALLOWS AIRPLANE SEATS TO BE REPRICED EVERY OTHER NANOSECOND IN RESPONSE TO SUPPLY AND DEMAND THEY SUSPECT A DARK CONSPIRACY EVERY TIME FARES GO UP OR DOWN MAYBE JUDGE KENT SHOULD HAVE LET THE PLAINTIFFS DIG BACK MORE THAN TWO YEARS TO TEST THE DEVIL THEORY OF BOB CRANDALL THEY'D HAVE CROSSED PATHS WITH JUSTICE DEPARTMENT LAWYERS WHO ACCUSED HIM AND EVERYBODY ELSE IN THE ROOM OF CONSPIRING TO RAISE FARES OR HOW ABOUT THE BRANIFF TROUBLES WHEN MR CRANDALL WAS ACCUSED OF RIGGING FARES UPWARD OR THE FACT THAT CONTINENTAL AND NORTHWEST ARE THEMSELVES ACCUSED OF PREDATORY PRICING BY ULTRAIR AND RENO AIR THE JURY MIGHT HAVE CONCLUDED THAT THE REAL PROBLEM IS THAT EVERYBODY SPENDS TOO MUCH TIME IN COURT THE POLITICALLEGAL SYSTEM IS FOREVER MOUNTING RESCUE OPERATIONS FOR THE COMPETITION'S ALSORANS AND THE MARKET IS NEVER UNBURDENED OF THIS WEIGHT NOW WE HEAR TWA IS READY FOR ITS UMPTYTHIRD RESURRECTION ONE DAY AFTER CONTINENTAL FILED ITS LAWSUIT LAST YEAR MICHAEL CONWAY OF BANKRUPT AMERICA WEST WAS TROTTED BEFORE A SENATE HEARING TO DENOUNCE MR CRANDALL AS A PREDATOR ON THE LOOSE NEVER MIND THAT AMERICA WEST'S REAL TROUBLE WAS A DELUSIONAL BUSINESS STRATEGY ANY SUGGESTION THAT THE MARKET SHOULD BE ALLOWED TO PUNISH SUCH MISTAKES STRUCK SENATOR JOHN MCCAIN AS ORWELLIAN OTHER CONGRESS FOLK HAVE BEEN EQUALLY PROTECTIVE OF THEIR AILING HOMETOWN AIRLINES A SIGNAL TO BANKRUPTCY JUDGES TO KEEP THEM FLYING AT ALL COSTS MEANWHILE THE CLINTON AIRLINE COMMISSION IS MUFFING A CHANCE TO REFORM THE BANKRUPTCY LAWS IT WOULD RATHER MOBILIZE DOT BUREAUCRATS TO VET EVERY CARRIER'S FINANCIAL FITNESS THEREBY CREATING EVEN MORE OPENINGS FOR POLITICIANS TO GET INTO THE COCKPIT AND PLAY WITH THE JOYSTICK IT TELLS YOU SOMETHING THAT THE EDITORS OF THE ATLANTIC MONTHLY HAD TO FIND AN AUSTRALIAN TO WRITE ABOUT THE SUCCESS OF US AIRLINE DEREGULATION IN THE LATEST ISSUE PERHAPS THIS BIT OF HETERODOXY IS STILL TOO DARING FOR MOST AMERICAN WRITERS TOO BAD DEREGULATION HAS BEEN A TERRIFIC BOON FOR THE UNWEALTHY FLYING PUBLIC AND INDEED FOR EVERYBODY WHO MAKES A LIVING IN THE ECONOMY THE WORD HASN'T GOTTEN OUT AND THESE GOOD THINGS ARE AT RISK BECAUSE HYPERACTIVE POLITICIANS LAWYERS AND JUDGES KEEP GUMMING UP THE WORKS 9308120053 930812 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 AMERICAN ANNUITY GROUP INC 100 MILLION OF SENIOR NOTES DUE AUG 15 2001 PRICED AT PAR TO YIELD 95 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FOUR YEARS ARE RATED BA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP CARROLS CORP 110 MILLION OF SENIOR 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 AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CITICORP SECURITIES MARKETS INC CHEMICAL BANK 150 MILLION OF SUBORDINATED NOTES DUE AUG 15 2008 PRICED AS 67S AT 99737 TO YIELD 6728 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 95 BASIS POINTS ABOVE WHENISSUED TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO CHEMICAL BANK IS A UNIT OF CHEMICAL BANKING CORP CHRYSLER FINANCIAL CORP 300 MILLION OF NOTES DUE AUG 15 2000 PRICED AS 6625S AT 99775 TO YIELD 6666 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 123 BASIS POINTS ABOVE TREASURYS RATED BA1 BY MOODY'S AND DOUBLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC CHRYSLER FINANCIAL IS A UNIT OF CHRYSLER CORP FEDERAL HOME LOAN BANK SYSTEM 200 MILLION OF STEPUP NOTES DUE SEPT 1 1998 PRICED AT PAR TO YIELD 45 ACCORDING TO MCM CORPORATEWATCH THE COUPON ON THE NOTES WHICH ARE NONCALLABLE FOR TWO YEARS STEPS UP TO 615 ON SEPT 1 1995 THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY NOMURA SECURITIES INTERNATIONAL INC FEDERAL HOME LOAN MORTGAGE CORP 250 MILLION OF STEPUP NOTES DUE AUG 23 1996 PRICED AT PAR TO YIELD 39 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 40 BASIS POINTS ABOVE THE ONEYEAR TREASURY BILL EQUIVALENT THE COUPON STEPS UP TO 51 ON AUG 23 1994 THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO LEUCADIA NATIONAL CORP 100 MILLION OF SENIOR NOTES DUE AUG 15 2013 PRICED AS 775S AT 99 TO YIELD 785 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 140 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JEFFERIES & CO NBD BANK NA 200 MILLION OF SUBORDINATED NOTES DUE AUG 15 2003 PRICED AS 625S AT 99596 TO YIELD 6305 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 55 BASIS POINTS ABOVE WHENISSUED TREASURYS RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NBD BANK IS A UNIT OF NBD BANCORP INC STUDENT LOAN MARKETING ASSOCIATION 500 MILLION OF FLOATINGRATE NOTES DUE AUG 20 1998 PRICED ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WILL PAY QUARTERLY AND FLOAT WEEKLY 19 BASIS POINTS ABOVE THE THREEMONTH TREASURY BILL THE THREEMONTH TREASURY BILL RATE CURRENTLY IS 3086 THE INITIAL COUPON WILL SET ON MONDAY THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS TRIANGLE PACIFIC CORP 160 MILLION OF SENIOR NOTES DUE AUG 1 2003 PRICED AT PAR TO YIELD 105 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP WISCONSIN BELL TELEPHONE CO 150 MILLION OF DEBENTURES DUE AUG 15 2024 PRICED AS 665S AT 97591 TO YIELD 694 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 55 BASIS POINTS ABOVE WHENISSUED TREASURYS RATED TRIPLEA BY MOODY'S AND TRIPLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP WISCONSIN BELL IS A UNIT OF AMERITECH CORP CASINO & CREDIT SERVICES INC INITIAL PUBLIC OFFERING OF 22 MILLION SHARES PRICED AT 7 A SHARE ALONG WITH A CONCURRENT PUBLIC OFFERING OF 11 MILLION REDEEMABLE WARRANTS PRICED AT 20 CENTS APIECE THROUGH UNDERWRITER JOSEPHTHAL LYON & ROSS INC FIRST USA INC FIVE MILLION COMMON SHARES PRICED AT 50 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NATIONAL GOLF PROPERTIES INITIAL OFFERING OF 97 MILLION COMMON SHARES PRICED AT 20375 APIECE THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO RANDOM ACCESS INC 29 MILLION COMMON SHARES OFFERED AT 4 A SHARE THROUGH UNDERWRITERS CHATFIELD DEAN & CO RJR NABISCO HOLDINGS CORP 125 BILLION OF CUMULATIVE PERPETUAL SERIES B PREFERRED STOCK PRICED AT 25 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE PREFERRED IS NONCALLABLE FOR FIVE YEARS HAS A 925 DIVIDEND YIELD AND IS RATED BA3 BY MOODY'S AND DOUBLEBPLUS BY S&P WELLCARE MANAGEMENT GROUP INITIAL OFFERING OF 22 MILLION COMMON SHARES PRICED AT 1175 APIECE THROUGH UNDERWRITERS LED BY AG EDWARDS EQUITY RESIDENTIAL PROPERTIES TRUST INITIAL OFFERING OF 115 MILLION COMMON SHARES OF BENEFICIAL INTEREST PRICED AT 26 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO CLARK COUNTY NEV SCHOOL DISTRICT 1362 MILLION LIMITEDTAX GENERALOBLIGATION REFUNDING BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 52493 YIELDS RANGE FROM 275 IN 1994 TO 535 IN 2009 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P COLORADO RIVER MUNICIPAL WATER DISTRICT WATER SYSTEM TEXAS 149 MILLION OF SERIES 1993 REVENUE REFUNDING BONDS PRICED BY A SMITH BARNEY SHEARSON GROUP YIELDS RANGE FROM 275 IN 1994 TO 558 IN 2021 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P SOUTH BROWARD FLA HOSPITAL DISTRICT 100 MILLION SERIES 1993 HOSPITAL REVENUE AND REFUNDING BONDS PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 28 IN 1994 TO 57 IN 2028 MOST OF THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P HOWEVER BONDS DUE IN 2028 ARE UNINSURED AND HAVE A SINGLEA1 RATING FROM MOODY'S AND A SINGLEAPLUS RATING FROM S&P FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1584 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 358 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1585 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 355 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 31 BILLION OF STRIPPED MORTGAGEBACKED SECURITIES TRUST 240 IS BEING OFFERED BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS UNDERWRITERS INCLUDE KIDDER PEABODY & CO LEHMAN BROTHERS DONALDSON LUFKIN & JENRETTE SECURITIES CORP SALOMON BROTHERS INC MERRILL LYNCH & CO GREENWICH CAPITAL MARKETS INC PAINEWEBBER INC PRUDENTIAL SECURITIES INC NIKKO SECURITIES AND NOMURA SECURITIES INTERNATIONAL INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES 1993176 IS BACKED BY PRINCIPALONLY CLASSES OF THE AGENCY'S STRIPS TRUST 237 WHICH IS BACKED IN TURN BY 30YEAR 8 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 85 AND WEIGHTED AVERAGE MATURITY OF 347 MONTHS ABBEY NATIONAL TREASURY SERVICES PLC UK PARENT 150 MILLION SWISS FRANCS OF 45 PRIVATELY PLACED NOTES DUE SEPT 13 1996 PRICED AT 10175 VIA CREDIT SUISSE FEES 125 POINTS BAYERISCHE HYPO FINANCE NV AMSTERDAM GERMAN PARENT 500 MILLION MARKS OF 6 EUROBONDS DUE SEPT 17 1998 AT ISSUE PRICE 1011 VIA BAYERISCHE HYPOTHEKEN UND WECHSELBANK AG BONDS YIELD 6215 AT 991 BREAKEVEN PRICE FOR COMANAGERS A MARGIN OF 25 BASIS POINTS ABOVE COMPARABLE GERMAN BUND GUARANTOR BAYERISCHE HYPOTHEKEN UND WECHSELBANK AG FEES TWO POINTS CREDIT COMMERCIAL DE FRANCE FRANCE FIVE BILLION YEN OF PARTLY COLLARED FLOATINGRATE EURONOTES DUE DEC 10 1998 AT ISSUE AND REOFFER PRICE 10025 VIA MITSUBISHI FINANCE INTERNATIONAL PLC INTEREST FLOATS AT THREEMONTH LONDON INTERBANK OFFERED RATE FOR YEN LESS 38 BASIS POINTS FOR SHORT FIRST COUPON PERIOD ENDING DECEMBER 1993 THEREAFTER INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH LIBOR LESS 38 BASIS POINTS COUPON CAPPED AT 6 FOR DURATION OF BONDS WITH FLOOR OF 4 UNTIL DECEMBER 1995 FEES 025 POINT CREDIT FONCIER DE FRANCE FRANCE 750 MILLION FRENCH FRANCS OF 675 EUROBONDS DUE JULY 21 2003 AT ISSUE AND REOFFER PRICE 10125 VIA CREDIT COMMERCIAL DE FRANCE AND SWISS BANK CORP BONDS WILL TRADE INTERCHANGEABLY WITH THREE BILLION FRANCS OF OUTSTANDING IDENTICAL BONDS NEW ISSUE SIZE 375 BILLION FRANCS BONDS YIELD 657 A SPREAD OF 26 BASIS POINTS ABOVE THE COMPARABLE FRENCH TREASURY ALL OTHER TERMS UNCHANGED FEES 0325 POINT DAILY MAIL & GENERAL TRUST PLC UK 50 MILLION OF 575 EXCHANGEABLE EUROBONDS DUE SEPT 26 2003 AT ISSUE PRICE PAR VIA CREDIT SUISSE FIRST BOSTON LTD BONDS EXCHANGEABLE INTO ORDINARY SHARES OF REUTERS HOLDINGS PLC AT EXCHANGE PRICE 1918 PENCE A PREMIUM OF 2702 OVER YESTERDAY'S MIDMORNING BID PRICE EXCHANGE PERIOD FROM 40 DAYS AFTER PAYMENT DATE TO SEPT 19 2003 BONDS CALLABLE AT PAR FROM OCT 9 1998 AND AT ANY TIME IF 85 OF BONDS CONVERTED FEES 25 INTEREST PAYABLE SEMIANNUALLY SOUTH AUSTRALIAN FINANCING AUTHORITY AUSTRALIAN AGENCY 100 MILLION CANADIAN DOLLARS OF 7375 EUROBONDS DUE OCT 6 2003 AT ISSUE PRICE 10025 VIA HAMBROS BANK LTD REOFFERED AT 986 TO YIELD 758 A SPREAD OF 50 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT NOTE GUARANTOR STATE OF SOUTH AUSTRALIA FEES TWO POINTS 9308120052 930812 BUSINESS BRIEF DEBT OF NUCOR USX PLACED UNDER REVIEW BY RATING AGENCIES TWO STEEL COMPANIES WERE PLACED ON REVIEW BY DEBTRATING AGENCIES STANDARD & POOR'S CORP PLACED THE DOUBLEAMINUS SENIOR DEBT AND A1PLUS COMMERCIAL PAPER RATINGS OF NUCOR CORP ON ITS CREDITWATCH LIST WITH NEGATIVE IMPLICATIONS S&P SAID 212 MILLION OF SENIOR DEBT AND 100 MILLION OF COMMERCIAL PAPER IS AFFECTED MOODY'S INVESTORS SERVICE INC MEANTIME PLACED THE LONGTERM DEBT AND PREFERRED RATINGS OF USX CORP AND ITS UNITS ON REVIEW FOR A POSSIBLE DOWNGRADE ABOUT 63 BILLION OF USX SECURITIES ARE AFFECTED USX'S PRIME3 COMMERCIAL PAPER IS ALSO UNDER REVIEW FOR POSSIBLE DOWNGRADE COMMENTING ON NUCOR A STEEL MINIMILL OPERATOR BASED IN CHARLOTTE NC S&P CITED THE AGGRESSIVENESS OF ITS GROWTH STRATEGY S&P SAID NUCOR PLANS TO DOUBLE CAPACITY AT TWO FLATROLLED FACILITIES AND AT A WIDEFLANGEBEAM FACILITY AND WITH OREGON STEEL MILLS INC IS BUILDING A NEW FLATROLLED PLANT MOREOVER S&P SAID NUCOR IS TESTING ITS FIRST STAINLESS STEEL AND BUILDING AN IRON CARBIDE PLANT IN TRINIDAD S&P SAID THE MOVES ARE EXPECTED TO INVOLVE VERY SUBSTANTIAL INVESTMENT AND COULD RESULT IN EXTENDED PERIODS OF INCREASED DEBT LEVELS THE RATING AGENCY ADDED THAT SIGNIFICANT UNANTICIPATED OPERATING PROBLEMS COULD CREATE HEIGHTENED OPERATING RISK SAMUEL SIEGEL NUCOR VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER SAID HE HAS SOME PROBLEMS WITH S&P'S ASSESSMENT HE SAID NUCOR'S INVESTMENT IN STAINLESS STEEL TESTING IS NOT SIGNIFICANT HE PUT THE COST OF THE TRINIDAD PLANT AT ABOUT 70 MILLION WHICH HE SAID DOESN'T REPRESENT A LARGE AMOUNT CONSIDERING OUR OVERALL CAPITAL EXPENDITURES MR SIEGEL ADDED THAT THE RISK IN ADDING CAPACITY IS MINOR IT'S EITHER POSITIVE OR VERY POSITIVE AS FOR USX A STEEL AND ENERGY CONCERN BASED IN PITTSBURGH MOODY'S CITED PERSISTENT WEAK OPERATING RETURNS THE AGENCY SAID IT WILL EXAMINE USX MANAGEMENT'S STRATEGIES TO DEAL WITH EVOLVING MARKETS AS WELL AS THE COMPANY'S ABILITY TO GENERATE ADEQUATE FUNDS TO COVER INVESTMENT REQUIREMENTS WITHOUT ADDITIONAL BORROWINGS USX HAD NO COMMENT 9308120051 930812 MARKETING & MEDIA HOME SHOPPING'S ROY SPEER RESIGNS CHAIRMAN'S POST BY MARK ROBICHAUX AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK ROY M SPEER THE BELEAGUERED CHAIRMAN OF HOME SHOPPING NETWORK INC RESIGNED AFTER A TURBULENT REIGN MARKED BY SHAREHOLDER LAWSUITS MANAGEMENT MISSTEPS AND CONTINUING FEDERAL INVESTIGATIONS THE DEPARTURE OF MR SPEER WHO ALL BUT CREATED THE TELEVISION SHOPPING INDUSTRY WHEN HE FOUNDED HOME SHOPPING ABOUT A DECADE AGO HAD BECOME A MATTER OF INTENSE SPECULATION AFTER HE SOLD CONTROL TO LIBERTY MEDIA CORP AND SUBSEQUENTLY EMERGED AS THE CENTRAL FIGURE IN A SPREADING SCANDAL THAT HAS ENGULFED THE NETWORK MR SPEER COULDN'T BE REACHED FOR COMMENT IN RECENT MONTHS HE AND OTHER FORMER HOME SHOPPING EXECUTIVES HAVE FACED LAWSUITS ALLEGING AMONG OTHER THINGS THAT THEY COLLECTED COMMERCIAL BRIBES HELD SECRET STAKES IN SUPPLIERS AND PAID HUSHMONEY TO POTENTIAL WHISTLEBLOWERS THE ALLEGATIONS ARE UNDER INVESTIGATION BY A FEDERAL GRAND JURY IN TAMPA FLA AND BY THE SECURITIES AND EXCHANGE COMMISSION HOME SHOPPING IS EXPECTED TO DISAPPEAR AS A CORPORATE ENTITY UNDER A MERGER PROPOSAL FROM ITS ARCHRIVAL QVC NETWORK INC WHICH LIBERTY MEDIA ALSO CONTROLS WITH PARTNERS THE TWO COMPANIES PRACTICALLY CONSTITUTE THE TV HOMESHOPPING INDUSTRY WITH COMBINED ANNUAL REVENUE EXCEEDING 2 BILLION HOME SHOPPING NAMED ROBERT R BENNETT LIBERTY MEDIA'S CHIEF FINANCIAL OFFICER AND A HOME SHOPPING DIRECTOR ACTING CHAIRMAN HE ISN'T EXPECTED TO PLAY A CENTRAL ROLE IN THE COMBINED COMPANY WHICH WILL BE RUN BY QVC CHAIRMAN BARRY DILLER FROM A NOVEL IDEA OF MARRYING AMERICA'S TWIN PASSIONS OF SHOPPING AND TVWATCHING MR SPEER LAUNCHED AN ENTIRE INDUSTRY WHICH SOME ANALYSTS PREDICT WILL REACH 10 BILLION IN ANNUAL REVENUE IN THE NEXT FIVE YEARS UNDER HIS TENURE HOME SHOPPING BEGAN AS A TINY RADIO SHOW IN THE 1970S IN CLEARWATER FLA AND MADE THE LEAP TO TELEVISION IN 1982 ON A LOCAL CABLE SYSTEM AS THE HOME SHOPPING CLUB IN 1986 MR SPEER AND COFOUNDER LOWELL PAXSON TOOK THE COMPANY PUBLIC IT BECAME A WALL STREET DARLING AND SPAWNED DOZENS OF IMITATORS SINCE THEN IT HAS EMERGED AS AN ELECTRONIC RETAILING POWERHOUSE WITH SALES OF MORE THAN 1 BILLION LAST YEAR BUT WITH ITS EARLY SUCCESS CAME NAGGING PROBLEMS THAT STILL HAUNT THE COMPANY ALMOST FROM THE OUTSET SHAREHOLDER LAWSUITS ALLEGED STOCK MANIPULATION IN ADDITION A FLORIDA STATE COURT ORDERED HOME SHOPPING TO PAY LIBEL DAMAGES OF 100 MILLION TO GTE CORP AFTER THE NETWORK SUED THE TELEPHONE COMPANY ALLEGING FAULTY PHONE SERVICE IT ALSO EMBARKED ON A HAPHAZARD AND LARGELY UNSUCCESSFUL DIVERSIFICATION STRATEGY ON TOP OF ALL OF THIS THERE WERE PERSISTENT RUMORS OF FINANCIAL IMPROPRIETIES IN ITS PURCHASING OPERATIONS IMPROPRIETIES THAT ARE NOW UNDER INVESTIGATION HAVING SOLD HIS CONTROL STAKE TO LIBERTY MEDIA FOR ROUGHLY 160 MILLION LAST DECEMBER MR SPEER SOLD OFF MUCH OF HIS REMAINING INTEREST IN RECENT WEEKS REAPING MORE THAN 100 MILLION IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE HOME SHOPPING'S STOCK CLOSED AT 13 A SHARE UP 125 CENTS 9308120050 930812 FUROR OVER MUNIS MAY SPUR COMPETITIVE BIDS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL STATES AND TOWNS ALL OVER THE US ARE BEGINNING TO BELIEVE THEY HAVE BEEN MUCH TOO COMPLACENT ABOUT HOW THEY CONDUCT THEIR BOND OFFERINGS AND THEY'RE BEGINNING TO DO SOMETHING ABOUT IT BUT IT'S A STRUGGLE NOBODY IS PREDICTING A QUICK END TO THE RECENT RASH OF ALLEGATIONS THAT MUNICIPALBOND OFFERING PRACTICES ARE BEING PULLED AROUND LIKE A PUPPET BY WALL STREET POLITICAL CONTRIBUTIONS FOR THE FIRST TIME IN YEARS HOWEVER MANY CITIES AND STATES SEEM SERIOUS ABOUT CRACKING DOWN A NUMBER OF ISSUERS FELT HELPLESS IN THE FACE OF THE POLITICAL PRESSURES SAYS AUSTIN TOBIN PRESIDENT OF DELPHIS HANOVER CORP A SOUTHBURY CONN PROVIDER OF BONDPRICING DATA TO MUNICIPALITIES OFFICIALS IN NEW JERSEY FLORIDA OKLAHOMA AND CALIFORNIA HAVE PROPOSED OR ARE CONSIDERING GREATER LIMITATIONS ON THE COZY RELATIONSHIPS OF NEGOTIATED BOND TRANSACTIONS WHICH TODAY ACCOUNT FOR MORE THAN 80 OF MUNI OFFERINGS THE GOAL IS TO RELY MORE ON COMPETITIVELY BID BOND DEALS WHICH ARE PRACTICALLY IMPOSSIBLE TO MANIPULATE IN ORDER TO FAVOR A BOND UNDERWRITING FIRM THAT DOLES OUT BIG POLITICAL CONTRIBUTIONS WILL THE MUNICIPALITIES SAVE MONEY BY SWITCHING TO COMPETITIVE BIDS SOMETIMES BUT NOT ALWAYS IT CAN BE A TOUGH CALL IN MANY CASES TAXPAYERS SEEM LIKELY TO BENEFIT BUT FOR NOW PEOPLE LIKE MICHAEL ASHCRAFT FEEL LIKE PULLING THEIR HAIR OUT MR ASHCRAFT IS COMPTROLLER OF THE OKLAHOMA TURNPIKE AUTHORITY THAT MAKES HIM A LIGHTNING ROD FOR THE NEGOTIATED VS COMPETITIVE CONTROVERSY THERE'S NO HINT OF A MUNI SANDAL IN OKLAHOMA STILL THE POLITICAL CLIMATE IS RESHAPING HIS PLANS FOR A 16 BILLION BOND SALE LATER THIS YEAR ON THE ONE HAND THERE MIGHT BE ADVANTAGES IN A NEGOTIATED OFFERING IN WHICH ONE SECURITIES FIRM OR GROUP OF FIRMS WOULD DECIDE THE CORRECT YIELD AND THUS FIND HOMES FOR ALL THE BONDS SUCH A MASSIVE OFFERING EVEN FROM AN ISSUER WITH A CREDIT RATING AS STRONG AS DOUBLEA OKLAHOMA COULD HIT A SNAG IN A COMPETITIVE DEAL BECAUSE THERE'S NO PRESALE MARKETING OF THE BONDS BY A WALL STREET UNDERWRITING FIRM A COMPETITIVE ISSUE IS SIMPLY AWARDED TO THE FIRM PROPOSING THE BEST THAT IS LOWEST YIELD BUT MR ASHCRAFT LEARNED THAT OKLAHOMA GOV DAVID WALTERS HAS BEEN CONSIDERING AN ANNOUNCEMENT THAT THE TURNPIKE AUTHORITY WOULD TAKE COMPETITIVE BIDS FOR THE LARGEST BOND ISSUE IN ITS HISTORY THE GOVERNOR LATELY HAS BEEN ASSAILED BY CRITICS QUESTIONING THE SIZE OF FEES TO BE PAID TO UNDERWRITERS AND HINTING THAT THERE MIGHT BE POLITICAL BACKSCRATCHING INVOLVED WE WANT TO MAKE SURE THAT WE'RE ABOVE REPROACH THIS IS TOO BIG OF A DEAL SAYS MR ASHCRAFT YET SOME OF THE CRITICS SEEM MORE INTERESTED IN APPEARANCES RATHER THAN WHETHER THE STATE GETS THE BEST DEAL ON ITS BONDS THERE ARE SITUATIONS WHERE A NEGOTIATED SALE MIGHT BE A BETTER DEAL SAYS STATE SEN DAVE HERBERT A VOCIFEROUS CRITIC BUT I'M WILLING TO SACRIFICE A LITTLE BIT ON THE DEAL TO MAKE SURE THAT A LITTLE BIT OF DAYLIGHT SHINES ON WHAT IS GOING ON THE SENATOR SAYS HE HAS REASON TO BE CYNICAL RECALLING THAT BACK IN THE EARLY 1980S WHEN HE WAS MAYOR OF MIDWEST CITY OKLA A DEALHUNGRY BOND UNDERWRITER ONCE OFFERED TO LET MR HERBERT DRIVE HIS SPORTS CAR AROUND THE BLOCK THEN OFFERED TO LET THE MAYOR KEEP THE CAR IN WASHINGTON MEANWHILE THERE'S TALK OF POSSIBLE LEGISLATION THAT MIGHT HELP PRUNE THE POLITICALCONTRIBUTIONS THICKET IN THE MUNI MARKET SUCH A NOTION IS A LONG WAY FROM BECOMING LAW BUT THE PUBLICITY WILL ADD FUEL TO THE FLAMES LICKING AWAY AT A GENERATION OF MUNIBOND HABITS COMPETITIVE BIDDING MEANS THE ISSUER ACCEPTS THE LOWEST BID FOR A SPECIFIED BOND OFFERING ON A CERTAIN DATE BY CONTRAST A NEGOTIATED BONDDEAL WINNER MAY NOT ALWAYS OFFER THE LOWEST BID THAT'S BECAUSE A NUMBER OF OTHER FACTORS ARE OFTEN CONSIDERED INCLUDING THE UNDERWRITER'S PAST DEALS INNOVATIVE PROPOSALS THAT WEREN'T CONTEMPLATED BY THE ISSUER AND EVEN PERSONALITIES DELPHIS HANOVER HAS BEEN FLOODED WITH CALLS FROM ISSUERS SEEKING ADVICE ON HOW BEST TO DO A BOND DEAL FOR THREE YEARS MR TOBIN CONDUCTED ONLY ABOUT SEVEN OR EIGHT PRESENTATIONS A YEAR TO ISSUERS ON HOW TO PRICE THEIR BONDS THAT HAS JUMPED TO ABOUT 30 THIS YEAR MUNICIPAL OFFICIALS HAVE LONG BEEN LOATH TO COMMENT ON THE RECORD ABOUT THE NEED FOR GREATER REGULATION BUT NOW THEY ARE BECOMING MUCH MORE VOCAL SOME MASSACHUSETTS OFFICIALS ARE SEEKING MORE REGULATION FOLLOWING ALLEGATIONS OF CONFLICTS OF INTEREST INVOLVING A FINANCIAL ADVISER AND SENIOR UNDERWRITER I WOULD LIKE TO SEE STRICTER DISCLOSURE LAWS AND MORE REGULATION BY THE FEDERAL GOVERNMENT SAYS ROBERT A CERASOLI THE STATE'S INSPECTOR GENERAL IT'S ALSO IMPORTANT FOR STATES TO TAKE IT UPON THEMSELVES TO REGULATE MUNI OFFERINGS MORE CLOSELY HE SAYS SPURRED ON BY THE MASSACHUSETTS SCANDAL THE STATE OF WISCONSIN DECIDED THIS MONTH TO REVIEW ITS CONTRACTS WITH FINANCIAL ADVISERS MOST ISSUERS AREN'T EQUIPPED TO HANDLE A NEGOTIATION SAYS FRANK HOADLEY WISCONSIN'S DIRECTOR OF CAPITAL FINANCE A LOT OF THEM GENUINELY FEEL THAT THEY ARE GETTING GOOD DEALS BUT THEY DON'T KNOW A LOT ABOUT THE MARKET AND THEY PROBABLY AREN'T GETTING AS GOOD A PRICE AS THEY THINK IN LOS ANGELES RECENTLY THERE WAS A DEBATE OVER WHETHER A BOND ISSUE WOULD BE SOLD THROUGH NEGOTIATED OR COMPETITIVE BIDDING THE CITY'S FINANCIAL ADVISER SWITCHED ITS RECOMMENDATION TO SUGGEST A COMPETITIVE DEAL WHICH THE CITY COUNCIL'S FINANCIAL COMMITTEE APPROVED BUT LESS THAN TWO WEEKS LATER THE COUNCIL AS A WHOLE VOTED IT DOWN NOW BOTH SIDES ARE POINTING FINGERS AT EACH OTHER NAPOLEON BRANDFORD III WHOSE FIRM GRIGSBY BRANDFORD & CO WAS AWARDED THE DEAL ALONG WITH TWO OTHER UNDERWRITERS CONTENDS THAT THE FLIPFLOP ON HOW TO CONDUCT THE BOND ISSUE HAD POLITICAL UNDERPINNINGS CERTAIN MEMBERS OF THE CITY'S FINANCIAL COMMITTEE PREFERRED ANOTHER FIRM OVER GRIGSBY AS THE LEAD UNDERWRITER HE SAYS BUT FACED GRIDLOCK OVER THE SELECTION THEY SAW A COMPETITIVE BID AS A WAY TO SHAKE SOMETHING LOOSE BUT COUNCILMAN ZEV YAROSLAVSKY SAYS LOBBYISTS FOR GRIGSBY WERE ACTIVE ABOUT PURSUING MEMBERS OF THE CITY COUNCIL TO AWARD THE DEAL TO GRIGSBY THE WHOLE THING REEKED SAYS MR YAROSLAVSKY A MAJORITY OF THE COUNCIL WAS COMMITTED TO VOTING FOR COMPETITIVE BIDDING UNTIL THE LOBBYIST GOT INTO THE ACT IN HILLSBOROUGH COUNTY FLA COUNTY OFFICIALS RECENTLY SCRAPPED PLANS FOR A NEGOTIATED UNDERWRITING EVEN THOUGH AN UNDERWRITER HAD ALREADY BEEN SELECTED IN FAVOR OF A COMPETITIVE UNDERWRITING THE MOVE CAME AFTER A PROBE BY LOCAL OFFICIALS RAISED CONCERNS ABOUT POTENTIAL CONFLICTS OF INTEREST COUNTY OFFICIALS HAD RECEIVED AN ANONYMOUS FACSIMILE ALLEGING THAT A COUNTY STAFF MEMBER HAD UNFAIRLY FAVORED THE WINNING UNDERWRITER THE STAFF MEMBER WAS CLEARED OF ANY WRONGDOING BUT COUNTY OFFICIALS DECIDED TO SCRAP THE NEGOTIATED UNDERWRITING ANYWAY THE SCRUTINY HAS MADE MANY ISSUERS THINK THAT PERHAPS THEY DON'T KNOW AS MUCH ABOUT HOW TO SELL THEIR BONDS AS THEY SHOULD FOR SOPHISTICATED ISSUERS NEGOTIATED UNDERWRITINGS PROVIDE AN OPPORTUNITY FOR EVEN LOWER YIELDS THAN MIGHT HAVE BEEN POSSIBLE WITH A COMPETITIVE UNDERWRITING BUT NOT EVERY ISSUER IS A PRO ON HOW TO SELL MUNIS MARKET ANALYSTS SAY A GENERALOBLIGATION BOND OFFERING FROM A MUNI ISSUER RATED SINGLEA OR HIGHER IN AN AMOUNT OF 10 MILLION OR MORE SHOULD BE SUFFICIENTLY STRAIGHTFORWARD TO BE BID COMPETITIVELY YET ACCORDING TO SECURITIES DATA CORP MORE THAN 30 OF SUCH DEALS FROM THE BEGINNING OF 1987 THROUGH THE MIDDLE OF THIS YEAR HAVE BEEN NEGOTIATED BECAUSE OF THE WAY SECURITIES DATA KEEPS RECORDS SEVERAL OF THESE OFFERINGS MAY NOT HAVE BEEN PLAINVANILLA GENERALOBLIGATION OFFERINGS BUT EVEN SO THE PERCENTAGE WOULD BE SIGNIFICANT AT SEMINARS HE CONDUCTS FOR ISSUERS WHO WANT TO LEARN HOW TO PROPERLY SELL THEIR BONDS MR TOBIN OF DELPHIS HANOVER PRODUCES STUDIES ON BONDS SOLD BY THE STATE OF CONNECTICUT DURING THE PAST FOUR YEARS HE COMPARED THE YIELDS WITH THE DELPHIS HANOVER DAILY INDEX WHICH IS USED BY MANY UNDERWRITERS AND MUNIMARKET EXPERTS AS A DAILY BENCHMARK FOR MUNI YIELDS ACROSS A SPECTRUM OF CREDIT QUALITY AND MATURITIES ACCORDING TO THE STUDY YIELDS ON SOME NEGOTIATED DEALS WERE ALL OVER THE BOARD A SIGN THAT THE STATE MAY NOT BE GETTING THE LOWEST YIELDS POSSIBLE IN ONE NEGOTIATED DEAL LAST FEBRUARY CONNECTICUT GARNERED YIELDS EQUIVALENT TO THOSE RECEIVED BY TRIPLEARATED CREDITS IN THE MARKET ON THE SAME DAY BUT ON A SIMILAR DEAL WITH THE SAME LEAD UNDERWRITER THE NEXT MONTH THE STATE GOT YIELDS EQUIVALENT TO THOSE RECEIVED BY ISSUERS RATED DOUBLEA OR LOWER TENYEAR NOTES IN THE FIRST OFFERING CAME WITH YIELDS ABOUT 021 PERCENTAGE POINT BELOW THE YIELDS FOR OTHER DOUBLEARATED SECURITIES IN THE MARKET THAT DAY BUT 10YEAR NOTES IN THE SECOND OFFERING CAME WITH YIELDS ABOUT 005 PERCENTAGE HIGHER THAN COMPARABLE DOUBLEA SECURITIES BENSON R COHN CONNECTICUT'S ASSISTANT TREASURER FOR DEBT MANAGEMENT SAYS BAD MARKET CONDITIONS CONTRIBUTED TO THE HIGHER YIELDS ON THE SECOND DEAL STEPHEN E FRANK CONTRIBUTED TO THIS ARTICLE 9308120049 930812 BUSINESS BRIEFS GENERAL ELECTRIC CO'S GE AIRCRAFT ENGINES UNIT WON A 40 MILLION ONEYEAR CONTRACT WITH A FOURYEAR OPTION FROM A LOCKHEED CORP UNIT TO OVERHAUL ENGINES USED IN US AIR FORCE TANKERS BANC ONE CORP COLUMBUS OHIO PLANS TO ACQUIRE CAPITAL BANCORP A HOLDING COMPANY OF SALT LAKE CITY TERMS WEREN'T DISCLOSED WELLSFORD RESIDENTIAL PROPERTY TRUST NEW YORK ACQUIRED FOUR MULTIFAMILY PROPERTIES WITH A TOTAL OF 1100 APARTMENTS IN NEVADA AND COLORADO FOR ABOUT 441 MILLION GTE CORP'S GTE AIRFONE SAID UAL CORP'S UNITED AIRLINES WILL EQUIP ITS DOMESTIC FLEET WITH THE GENSTAR SYSTEM GTE'S DIGITAL TELECOMMUNICATIONS SYSTEM FOR AIRLINE PASSENGERS BEGINNING THIS FALL TERMS WEREN'T DISCLOSED CEL COMMUNICATIONS INC NEW YORK SAID IT WILL PRODUCE A VIDEODISC PRODUCT BASED ON HOUGHTON MIFFLIN CO'S AMERICAN GOVERNMENT TEXTBOOKS WARNERLAMBERT CO MORRIS PLAINS NJ IS TO ACQUIRE WILLINGER BROS INC OAKLAND NJ A MAKER OF AQUARIUM PRODUCTS TERMS WEREN'T DISCLOSED 9308120048 930812 PROMUS GROUP IS PICKED BY LOUISIANA TO OWN NEW ORLEANS CASINO COMPLEX BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL LOUISIANA GAMBLING REGULATORS SELECTED A UNIT OF PROMUS COS AND A GROUP OF BUSINESS PARTNERS TO OWN AND OPERATE THE STATE'S ONLY LANDBASED CASINO COMPLEX EDGING OUT A PARTNERSHIP LED BY DEVELOPER CHRISTOPHER HEMMETER AND CAESARS WORLD INC THE 54 VOTE BY THE STATE CASINO BOARD SURPRISED MANY OBSERVERS WHO HAD BELIEVED THAT MR HEMMETER AND CAESARS WERE ALL BUT ASSURED OF THE STATE'S BACKING AFTER THE CITY OF NEW ORLEANS GRANTED THEM THE LEASE TO THE RIVERGATE CONVENTION CENTER THE CITYOWNED FACILITY DESIGNATED AS THE CASINO SITE INVESTORS REACTED STRONGLY PROMUS'S STOCK JUMPED 6375 TO CLOSE AT 64375 IN HEAVY COMPOSITE TRADING OF 13 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE CAESARS' STOCK WHICH HAD ADVANCED EARLY IN THE BIG BOARD SESSION BEFORE THE VOTE WAS ANNOUNCED DROPPED 275 TO 43125 ON VOLUME OF 13 MILLION SHARES WE'RE ELATED SAID PHILIP SATRE PRESIDENT OF PROMUS BASED IN MEMPHIS TENN BARRING ANY UNEXPECTED DELAYS HE SAID THE GROUP COULD BEGIN RUNNING A TEMPORARY 40000SQUAREFOOT CASINO ON THE SITE AFTER JAN 1 AND MAY COMPLETE THE 120000SQUAREFOOT CASINO BY DEC 31 1994 PROMUS'S HARRAH'S GAMBLING DIVISION AND A GROUP OF 10 LOUISIANA BUSINESSMEN LED BY LAWYER WENDELL GAUTHIER MUST CLEAR SOME HURDLES BEFORE BEGINNING CONSTRUCTION OF THE CASINO TO BE KNOWN AS THE HARRAH'S JAZZ CASINO THE GROUP MUST UNDERGO STATE LICENSING PROCEDURES AND MUST NEGOTIATE TERMS OF THE RIVERGATE LEASE WITH MR HEMMETER AND HIS PARTNERS AMONG OTHER THINGS MR HEMMETER SAID SOON AFTER THE HEARING THAT HE DIDN'T PLAN TO CHALLENGE THE DECISION AND WOULD BEGIN TALKS WITH THE HARRAH'S GROUP SOON A SPOKESMAN FOR CAESARS WORLD IN LOS ANGELES SAID THE COMPANY WAS DISAPPOINTED AND SOMEWHAT SURPRISED BY THE VOTE BUT DECLINED FURTHER COMMENT THE TOTAL DEVELOPMENT AND RENOVATION COST IS ESTIMATED AT 240 MILLION NOT INCLUDING TAX PAYMENTS OR SPECIAL PAYMENTS THAT COULD AMOUNT TO HUNDREDS OF MILLIONS MORE TO THE CITY AND STATE MR SATRE SAID ALL SUCH PAYMENTS ARE SUBJECT TO THE GROUP BEING LICENSED TO OPERATE THE COMPLEX THOUGH LOUISIANA PERMITS RIVERBOAT CASINOS THE STATE HAS SAID THE NEW ORLEANS PROJECT WILL BE THE ONLY LANDBASED CASINO COMPLEX IT WILL ALLOW WHEN COMPLETE THE CASINO WILL HOUSE 4800 SLOT MACHINES AND 200 TABLE GAMES AND IS EXPECTED TO GENERATE ABOUT 600 MILLION IN ANNUAL GAMBLING REVENUE AND DRAW AN ESTIMATED 56 MILLION VISITORS WALL STREET ANALYSTS HAVE HIGH HOPES FOR THE PROJECT IT'S A GREAT PROJECT AND A TERRIFIC LOCATION SAID MICHAEL MUELLER AN ANALYST WITH MONTGOMERY SECURITIES JOHN J ROHS AN ANALYST WITH WERTHEIM SCHROEDER & CO ESTIMATED THAT THE COMPLEX COULD ADD ANYWHERE FROM 60 CENTS TO 1 A SHARE TO PROMUS'S EARNINGS IN THE FIRST FULL YEAR OF OPERATION BASED ON THE COMPANY'S CURRENT PROJECT PLAN THE VOTE CAPPED A LONG AND BRUTAL BIDDING WAR FOR THE PROJECT WHICH INITIALLY DREW BIDS FROM GROUPS MADE UP OF DOZENS OF PUBLIC AND PRIVATE INVESTORS NEW ORLEANS IS CONSIDERED A PRIME SITE FOR CASINO GAMBLING BECAUSE OF ITS POPULARITY AS A TOURIST SITE AND ESTIMATES THAT ABOUT 115 MILLION POTENTIAL CUSTOMERS LIVE WITHIN A DAY'S DRIVE OF THE CITY 9308120047 930812 CREDIT MARKETS MANY TREASURY ISSUES POST PRICE GAINS AS SALE OF US 10YEAR NOTES RECEIVES STRONG DEMAND BY GENE COLTER AND JACQUELINE DOHERTY SPECIAL TO THE WALL STREET JOURNAL NEW YORK STRONG DEMAND FOR NEW TREASURY NOTES YESTERDAY HELPED TO LIFT PRICES OF MANY TREASURY SECURITIES AS YIELDS FOR 30YEAR BONDS DROPPED FOR THE FIFTH CONSECUTIVE DAY AFTER LANGUISHING WITH PRICE LOSSES OF AS MUCH AS 1/4 POINT EARLY IN THE DAY THE 30YEAR BOND RECOVERED YESTERDAY AFTERNOON TO POST A GAIN OF 1/8 POINT OR 125 FOR A BOND WITH A 1000 FACE VALUE TO 109 6/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE DROPPED TO 642 THE LOWEST SINCE THE TREASURY BEGAN CONDUCTING REGULAR AUCTIONS OF THE BOND IN 1977 IT WAS THE GOVERNMENT'S SALE OF 1103 BILLION OF NEW 10YEAR NOTES THAT PROMPTED TREASURYS OF ALL MATURITIES TO ERASE MILD LOSSES SEEN IN THE MORNING TO FINISH UNCHANGED OR A LITTLE BETTER THE NOTES WERE SOLD AS PART OF THE TREASURY'S 385 BILLION REFUNDING PACKAGE WHICH CONCLUDES TODAY WITH THE SALE OF 11 BILLION IN NEW 30YEAR BONDS THE FEDERAL GOVERNMENT USES REFUNDING PROCEEDS TO PAY OFF MATURING DEBT MOST OF THE INTEREST IN THE 10YEAR NOTE HOWEVER CAME FROM WALL STREET DEALERS AND SPECULATIVE TRADERS THE NEW 10YEAR NOTE WAS AWARDED AT AN AVERAGE YIELD OF 578 THE LOWEST AVERAGE YIELD SINCE REGULAR AUCTION OF THE ISSUE BEGAN IN MAY 1976 ALSO THE BIDTOCOVER RATIO A MEASURE OF DEMAND COMPARING THE NUMBER OF BIDS TENDERED BY DEALERS TO THOSE ACCEPTED BY TREASURY WAS AN EXTREMELY STRONG 315TO1 OVER THE PREVIOUS 12 AUCTIONS THE 10YEAR NOTE HAD PRODUCED AN AVERAGE BIDTOCOVER RATIO OF ONLY 249TO1 NEW YORK DEALERS BOUGHT ALMOST 96 OF THE NEW ISSUE BUT TRADERS SAID THAT DOESN'T MEAN THE ISSUE WILL LINE DEALERS' SHELVES RATHER MOST TRADERS SAY THE NOTE WAS BADLY NEEDED BY STREET PLAYERS WHO HAD BEEN SELLING THE ISSUE SHORT LATELY ON BETS THAT LONGTERM RATES WILL CONTINUE TO FALL IN RELATION TO THE RATES OF SHORTERTERM ISSUES SUCH AS THE 10YEAR NOTE THAT WOULD MEAN RISING PRICES FOR THE LONGTERM ISSUES AND FALLING PRICES FOR THE SHORTERTERM ISSUES IN A SHORT SALE A TRADER SELLS A BORROWED SECURITY IN THE HOPE OF BUYING IT BACK AT A LOWER PRICE AND POCKETING THE DIFFERENCE A LOT OF THE SECURITIES PURCHASED HERE PROBABLY REPRESENTED PEOPLE WHO WERE SHORT THE MARKET SAID LAWRENCE LEUZZI A MANAGING DIRECTOR AND HEAD OF FIXED INCOME AT SG WARBURG & CO DEALERS AND SPECULATIVE ACCOUNTS HAD BEEN SHORTSELLING THE 10YEAR NOTE BECAUSE THEY THOUGHT THE YIELD GAP BETWEEN THE NOTE AND THE 30YEAR BOND WOULD CONTINUE TO SHRINK AS THE BOND'S PRICE CONTINUES TO CLIMB AND THE 10YEAR NOTE'S PRICE CONTINUES TO DROP THE GAP STOOD AT 066 PERCENTAGE POINT LATE YESTERDAY DOWN FROM NEARLY 090 PERCENTAGE POINT IN EARLY JULY AND THESE SHORT SALES HAVE BROUGHT PROFITS FOR THESE PLAYERS BUT TRADERS AND ANALYSTS AREN'T IN AGREEMENT AS TO WHAT YESTERDAY'S STRONG NOTE SALE SAYS ABOUT THE CHANCES FOR THE DEMAND FOR THE 30YEAR BOND TODAY SOME MARKET WATCHERS SAY THE 30YEAR BOND ENJOYS A SCARCITY VALUE WHICH MEANS THAT THE LESS THERE IS OF AN ISSUE THE MORE IT'S WORTH THAT'S BECAUSE THE TREASURY DECIDED LAST SPRING TO SELL NEW BONDS ONLY TWICE A YEAR RATHER THAN QUARTERLY AS IT HAD PREVIOUSLY THE DEPARTMENT REASONED THAT IT COULD SAVE THE GOVERNMENT MONEY BY TRANSFERRING MORE OF ITS DEBT FINANCING TO SHORTERTERM LOWERYIELDING SECURITIES HOWEVER JIM FITZGIBBON CHIEF MARKET STRATEGIST FOR TOKAI BANK LTD DISAGREES WITH THE IDEA THAT THE BOND ENJOYS A SCARCITY VALUE IN FACT MR FITZGIBBON THINKS THE ENTIRE BOND MARKET IS DUE FOR A CORRECTION HOW CAN SOMETHING BE SCARCE WHEN THERE IS 43 TRILLION OF THIS WORTHLESS' PAPER OUT THERE MR FITZGIBBON SAID OF US DEBT ISSUES REGARDLESS OF WHETHER OR NOT PRESIDENT CLINTON'S NEWLY ENACTED BUDGET REDUCES THE DEFICIT THERE WILL STILL BE A HUGE SUPPLY OF GOVERNMENT DEBT HE EXPLAINED MUCH OF IT IN LONGTERM SECURITIES MR FITZGIBBON SAID THERE IS A PROBLEM OF PERCEPTION IN THE BOND MARKET AUCTIONING AN ISSUE FEWER TIMES IN A YEAR AUTOMATICALLY MAKES IT WORTH MORE THE REAL POINT HE SAID IS THE CREDITWORTHINESS OF THE DEBT THE ANALYST SAID HE FELT US DEBT SECURITIES ARE LOSING THEIR CREDIT CACHET SCARCITY IS A FARCE MR FITZGIBBON CONCLUDED IT'S A GREAT SALES TRICK TO CONVINCE RETAIL AND CONSUMERS TO BUY DESPITE MR FITZGIBBON'S CRITICISMS MANY IN THE BOND MARKET ARE CONVINCED THAT THE PRICES OF 30YEAR BONDS HAVE RISEN BECAUSE OF THE SCARCITY VALUE AFTER TODAY THE GOVERNMENT WILL NOT HAVE ANOTHER 30YEAR BOND AUCTION UNTIL FEBRUARY MEANWHILE THE 30YEAR BOND TO BE SOLD TODAY WAS YIELDING 635 IN LATE WHENISSUED TRADING DOWN FROM 637 ON TUESDAY THE 10YEAR NOTE SOLD YESTERDAY WAS YIELDING 574 IN WHENISSUED TRADING DOWN FROM 578 AT THE AUCTION THE THREEYEAR NOTE SOLD TUESDAY WAS YIELDING 447 IN WHENISSUED TRADING DOWN FROM 448 ON TUESDAY HERE ARE THE RESULTS OF THE 10YEAR AUCTION INVESTORS SCRAMBLED YESTERDAY TO SNAP UP RJR NABISCO HOLDINGS CORP'S HUGE 125 BILLION OFFERING OF PERPETUAL PREFERRED STOCK WITH ITS ATTRACTIVE 925 YIELD RJR'S DEAL WAS THE LARGEST PREFERREDSTOCK OFFERING EVER ACCORDING TO SECURITIES DATA CO WHICH LISTS THE SECONDBIGGEST AS INTERNATIONAL BUSINESS MACHINES CORP'S MAY SALE OF 11 BILLION OF PREFERRED STOCK SINCE PREFERRED STOCK PAYS A FIXED DIVIDEND IT IS VERY SIMILAR TO A STRAIGHT BOND WHICH OFFERS SET COUPON PAYMENTS AND OFTEN IS PURCHASED BY THE SAME TYPE OF INVESTORS WHO WOULD BUY BONDS THE OFFERING FROM FOOD AND TOBACCO CONCERN RJR WAS THE BIGGEST IN A RATHER BUSY CORPORATE NEWISSUE MARKET YESTERDAY AS A DIVERSE GROUP OF ISSUERS TAPPED BOTH THE INVESTMENTGRADE AND JUNK BOND MARKETS NOT COUNTING THE RJR OFFERING THERE WERE SIX CORPORATE DEBT OFFERINGS TOTALING 1 BILLION AS WELL AS 950 MILLION OF DEBT FROM THREE FEDERAL AGENCIES THE RJR OFFERING SOLD THROUGH MERRILL LYNCH & CO AND 13 COMANAGERS IS RATED BA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEBPLUS BY STANDARD & POOR'S CORP AND IS NONCALLABLE FOR FIVE YEARS BUT SINCE THE ISSUE IS PERPETUAL THE STOCK HAS NO FINAL MATURITY WHICH MEANS THAT IT CAN BE LEFT OUTSTANDING AS LONG AS THE COMPANY WISHES RJR PRICED ITS 50 MILLION SHARES OF PREFERRED STOCK AT 25 PER SHARE EARLY IN THE SESSION THE DEAL WAS ORIGINALLY SLATED TO BE 500 MILLION BUT IT WAS INCREASED IN SIZE AS INVESTOR DEMAND APPEARED STRONG A MERRILL LYNCH OFFICIAL SAID AS INTEREST RATES HAVE DECLINED THERE HAVE BEEN FEW PREFERRED DEALS WITH DIVIDENDS OVER 9 THERE HAVE BEEN 175 NONCONVERTIBLE PREFERRED STOCK OFFERINGS THIS YEAR TOTALING 1535 BILLION ONLY SIX OTHERS HAD DIVIDENDS OVER 9 ACCORDING TO SECURITIES DATA THE RJR DEAL WAS SOLD BOTH TO RETAIL AND INSTITUTIONAL INVESTORS IN A MARKET THAT HASN'T BEEN OVERLY CROWDED WITH NEW DEALS RECENTLY THE MERRILL LYNCH OFFICIAL SAID TAXPAYING CORPORATIONS THAT PURCHASE THE PREFERRED STOCK SUCH AS INSURANCE COMPANIES ARE ELIGIBLE FOR A DIVIDENDRECEIVED DEDUCTION WHICH BOOSTS THE YIELD OF THE PREFERRED ON A PRETAX BASIS FOR SUCH INVESTORS THE YIELD ON RJR'S PREFERRED WAS EQUIVALENT TO 125 ON A PRETAX BASIS TRADERS SAID PRICES OF MUNICIPAL BONDS ENDED UNCHANGED TO 1/2 POINT HIGHER STILL INCHING HIGHER AFTER THE CLIMB IN THE PREVIOUS TWO SESSIONS THE MOOD ABOUT TAXEXEMPT SECURITIES IS STILL VERY BULLISH BECAUSE OF THE FEDERAL INCOMETAX INCREASES THAT JUST WENT INTO EFFECT TRADERS SAY IN CURRENT DEALINGS THE NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY'S 5625 REVENUE BONDS OF 2018 ENDED UNCHANGED AT 99 3/4 TO YIELD 563 HOWEVER THE LOS ANGELES DEPARTMENT OF WATER & POWER'S 5875 REVENUE REFUNDING BONDS OF 2030 FINISHED 1/2 HIGHER AT 102 TO YIELD 573 SEPARATELY NEW YORK CITY MAYOR DAVID DINKINS AND COMPTROLLER ELIZABETH HOLTZMAN SAID THAT THE CITY RECEIVED A TRUE INTEREST COST OF 563 FOR THE FISCAL 1994 SERIES B GENERAL OBLIGATION BONDS THAT WERE SOLD TUESDAY THAT TRUE INTEREST COST IS THE LOWEST ONE OBTAINED BY THE CITY IN 20 YEARS INCLUDED IN THE OFFERING ARE 300 MILLION OF FIXEDRATE BONDS WHICH WERE PRICED BY TWO GROUPS THAT WERE LED BY THE MINORITYOWNED FIRMS GRIGSBY BRANDFORD & CO AND PRYOR MCCLENDON COUNTS & CO THOSE COMPANIES ARE THE FIRST MINORITYOWNED FIRMS TO ACT AS BOOKRUNNING LEAD MANAGERS FOR NEW YORK CITY GENERAL OBLIGATION BONDS THE CITY'S LATEST SET OF SECURITIES ALSO INCLUDES 110 MILLION OF VARIABLERATE GENERAL OBLIGATION BONDS WHICH ARE DAILY FLOATERS WITH FINAL MATURITIES IN 201723 A 31 BILLION OFFERING OF FEDERAL NATIONAL MORTGAGE ASSOCIATION STRIPPED MORTGAGEBACKED SECURITIES BOOSTED SECONDARY TRADING OF 7 SECURITIES YESTERDAY AS DEALERS SCRAMBLED FOR COLLATERAL TO BACK THE DEAL THE TRANSACTION STRIPPED MORTGAGE BACKED TRUST 240 IS BEING MANAGED BY 10 INVESTMENT BANKS AND IS ONE OF SEVERAL HUGE TRUSTS OFFERED BY FANNIE MAE AND FEDERAL HOME LOAN MORTGAGE CORP THIS YEAR STRIPPED TRUSTS CONTAIN INTERESTONLY AND PRINCIPALONLY SECURITIES STRIPPED FROM A POOL OF LIKE MORTGAGE PASSTHROUGHS THE SECURITIES IN THE LATEST TRUST WHICH SETTLES SEPT 30 WILL BE BACKED BY 7 PASSTHROUGHS WITH A WEIGHTED AVERAGE COUPON OF 75 DEALERS WHO ARE MANAGING THE TRANSACTION WERE BUYING 7 ISSUES IN THE SECONDARY MARKET PUSHING PRICES OF FANNIE MAE 7 ISSUES UP 5/32 YESTERDAY TO 102 3/32 ACCORDING TO TRADERS LARGE TRUSTS PROVIDE MORE LIQUIDITY FOR THE IO AND PO CLASSES WHICH AIDS THEIR PRICING THE TRUSTS ALSO AID DEALERS WHO MAY BE SEEKING STRIPPED SECURITIES TO BACK ANOTHER TRANSACTION SAID A STRIPS TRADER ELSEWHERE IN SECONDARY TRADING 65 ISSUES WERE BOUGHT BY INSTITUTIONAL INVESTORS WHO WERE TRADING OUT OF HIGHERCOUPON AND MORE PREPAYMENTSENSITIVE SECURITIES FOR SAFER GROUND GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 ISSUES FOR SEPTEMBER DELIVERY FINISHED 5/32 HIGHER AT 99 22/32 FREDDIE MAC GOLD 65 ISSUES FINISHED 8/32 HIGHER AT 99 25/32 AND FANNIE MAE 65 ISSUES ENDED 8/32 HIGHER AT 99 21/32 9308120046 930812 LAW LEGAL BEAT MANUFACTURERS MAY REEXAMINE PRICING UNDER FEDERAL SCRUTINY BY EDWARD FELSENTHAL AND GREGORY A PATTERSON STAFF REPORTERS OF THE WALL STREET JOURNAL MAKERS OF CONSUMER GOODS MAY NEED TO REEXAMINE SOME PRICING ARRANGEMENTS ANTITRUST LAWYERS SAY IN THE WAKE OF THE CLINTON ADMINISTRATION'S ANNOUNCEMENT THAT IT WILL STEP UP SCRUTINY OF ALLEGED PRICE FIXING AFTER YEARS OF RELATIVELY LAX ENFORCEMENT BY REPUBLICAN OFFICIALS THE JUSTICE DEPARTMENT WILL BECOME MORE AGGRESSIVE IN PROSECUTING MANUFACTURERS WHO IMPOSE A MINIMUM RETAIL PRICE ON THEIR PRODUCTS ASSISTANT ATTORNEY GENERAL ANNE BINGAMAN SAID ALTHOUGH RECENT US SUPREME COURT RULINGS HAVE MADE IT MUCH HARDER FOR THE GOVERNMENT TO WIN SUCH CASES LAWYERS SAY GREATER ENFORCEMENT MAY CALL INTO QUESTION SOME COMMON PRICING PRACTICES MS BINGAMAN MADE THE ANNOUNCEMENT IN A SPEECH TO A CONVENTION OF THE AMERICAN BAR ASSOCIATION EARLIER THIS WEEK FEW MANUFACTURERS EXPLICITLY IMPOSE WRITTEN PRICE REQUIREMENTS ON THEIR DISTRIBUTORS BECAUSE SUCH AGREEMENTS WOULD ALMOST CERTAINLY VIOLATE ANTITRUST LAWS BUT MAKERS OF MANY CONSUMER GOODS INCLUDING NAMEBRAND APPAREL ELECTRONICS AND APPLIANCES FREQUENTLY SUGGEST RETAIL PRICES WHEN RETAILERS SET PRICES BELOW THOSE LEVELS SOME MANUFACTURERS ATTEMPT TO BRING THE DEALERS INTO LINE BY VERBALLY CAJOLING THEM OR THREATENING TO CUT OFF THEIR SUPPLIES IT IS THOSE MORE AMBIGUOUS SITUATIONS THAT THE JUSTICE DEPARTMENT IS NOW EXPECTED TO PURSUE THIS IS A SIGNAL TO A VERY DIFFERENT REGULATORY APPROACH SAID THOMAS CAMPBELL AN ANTITRUST SPECIALIST AT CHICAGO LAW FIRM GARDNER CARTON & DOUGLAS THE ADMINISTRATION IS GOING TO HALT ITS PREVIOUS GENTLEMEN'S AGREEMENT THAT WE'RE GOING TO WINK AT THESE PRICE RESTRAINTS CONSUMER ELECTRONICS RETAILERS SAY SUCH SOCALLED VERTICAL PRICING IS RAMPANT IN THEIR INDUSTRY AGREEMENTS BETWEEN MANUFACTURERS AND RETAILERS CALLING FOR MANUFACTURERS TO PAY A PORTION OF RETAIL ADVERTISING FOR INSTANCE USUALLY SPECIFY THAT THEY WILL DO SO ONLY IF THE PRODUCTS ARE ADVERTISED AT OR ABOVE CERTAIN PRICES IN OUR INDUSTRY MANUFACTURERS ARE VERY ACTIVE IN TRYING TO LOBBY THAT THE PRICE THE PRODUCT IS ADVERTISED AT DOESN'T FALL BELOW THEIR GUIDELINES SAID BRAD ANDERSON PRESIDENT OF BEST BUY CO A MINNEAPOLISBASED DISCOUNT CONSUMERELECTRONICS RETAILER HE SAYS THE PRACTICE HAS BEEN TOLERATED AND EVEN ENCOURAGED BY THE REGULATORY AGENCIES UP UNTIL NOW MANUFACTURERS ALSO SEEK TO CONTROL PRICES BY SELLING ONLY TO CERTAIN RETAILERS OFTEN DECLINING TO SELL TO DISCOUNT RETAILERS TO FORESTALL PRICECUTTING MR ANDERSON SAID HE THINKS THE GOVERNMENT'S NEW INITIATIVES COULD EVENTUALLY DRIVE SOME HIGHCOST SERVICEORIENTED CONSUMERELECTRONICS RETAILERS OUT OF BUSINESS LEAVING CONSUMERS WITH FEWER OUTLETS TO PURCHASE BUT HE SAID HE SUSPECTS THE IMPACT SUCH INITIATIVES WOULD HAVE ON PRICING WOULD BE LESS SEVERE BECAUSE THE CONSUMERELECTRONICS AND APPLIANCE BUSINESS ALREADY OPERATES ON VERY NARROW PROFIT MARGINS BEST BUY MR ANDERSON'S COMPANY CURRENTLY IS INVOLVED IN A SUIT AGAINST AUDIOPARTS MAKER ONKYO USA A UNIT OF JAPAN'S ONKYO CORP ALLEGING THAT ONKYO ATTEMPTED TO FIX PRICES OF ITS PRODUCTS SOLD THROUGH BEST BUY STORES BEST BUY NO LONGER SELLS ONKYO PRODUCTS AND THE LAWSUIT IS PENDING IN FEDERAL COURT IN A SEPARATE SPEECH AT THE ABA CONVENTION EARLIER THIS WEEK MARY L AZCUENAGA ONE OF THE FEDERAL TRADE COMMISSION'S FIVE COMMISSIONERS ALSO PREDICTED THAT THE GOVERNMENT WOULD BRING MORE PRICEFIXING CASES DESPITE THE CLINTON ADMINISTRATION'S RHETORIC SOME ANTITRUST LAWYERS QUESTIONED WHETHER THE JUSTICE DEPARTMENT ACTUALLY WILL PROSECUTE MORE VERTICALPRICEFIXING CASES IN ADDITION THE SUPREME COURT HAS SIGNIFICANTLY NARROWED THE DEFINITION OF ILLEGAL PRICEFIXING MAKING THE CASES MORE DIFFICULT FOR THE GOVERNMENT TO WIN THEY'RE NOT GOING TO WASTE TIME ON LOSING CASES SAID JEFF ZUCKERMAN A LAWYER WHO HEADED THE FTC'S BUREAU OF COMPETITION FROM 1986 TO 1989 REAGAN ANTITRUST OFFICIALS DIDN'T PROSECUTE ANY CASES OF PRICE FIXING BETWEEN SUPPLIERS AND DISTRIBUTORS THE FTC WHICH SHARES ANTITRUST AUTHORITY WITH THE JUSTICE DEPARTMENT BROUGHT TWO SUCH CASES DURING THE BUSH ADMINISTRATION THE CASES WHICH INVOLVED THE US SUBSIDIARY OF VIDEOGAME GIANT NINTENDO CO AND KREEPY KRAULY USA A UNIT OF HONG KONG HOLDING COMPANY PACHUNG THAT MAKES SWIMMINGPOOL CLEANING DEVICES WERE BOTH SETTLED THE JUSTICE DEPARTMENT ALSO FILED AN ANTITRUST SUIT IN MARCH IN A CASE OF ALLEGED VERTICAL PRICEFIXING LAWYERS SAID MS BINGAMAN'S SPEECH COULD LEAD SOME MANUFACTURERS TO CHANGE THEIR PRICING PRACTICES SIMPLY BECAUSE OF THEIR FEAR THAT THEY MIGHT BE TARGETS OF AN ANTITRUST PROSECUTION PERCEPTION SORT OF RUNS THE ANTITRUST WORLD BECAUSE THE ANTITRUST LAWS ARE VERY BROAD AND AMBIGUOUS AND ADVISING ANTITRUST CLIENTS IS OFTEN BASED MORE ON PERCEPTION OF WHAT SORTS OF THINGS WILL BE PROSECUTED THAN ON LEGAL PRINCIPLES THEMSELVES SAID JOHN MILES AN ANTITRUST SPECIALIST AT THE LAW FIRM OBER KALER GRIMES & SHRIVER IN WASHINGTON WHO'S NEWS STEVEN J STEIN A PARTNER AT NEW YORK LAW FIRM BOULANGER HICKS STEIN & CHURCHILL HAS BEEN NAMED GENERAL COUNSEL OF UNITED NATIONS WATCH A PROJECT RECENTLY BEGUN BY WORLD JEWISH CONGRESS PRESIDENT EDGAR M BRONFMAN TO MONITOR HUMANRIGHTS ABUSES HE WILL REMAIN A PARTNER AT BOULANGER MORRIS ABRAM OF COUNSEL TO NEW YORK LAW FIRM PAUL WEISS RIFKIND WHARTON & GARRISON WAS NAMED CHAIRMAN OF THE PROJECT 9308120045 930812 BANK OF NEW YORK ACQUISITION NEW YORK BANK OF NEW YORK CO COMPLETED THE ACQUISITION OF NATIONAL COMMUNITY BANKS INC WEST PATERSON NJ WHICH WAS VALUED AT 575 MILLION AT THE TIME IT WAS ANNOUNCED NATIONAL COMMUNITY HAS ASSETS OF 42 BILLION AND OPERATES 105 BRANCHES MOSTLY IN NORTHERN NEW JERSEY 9308120043 930812 FOREIGN EXCHANGE DOLLAR SINKS TO 10353 LOW AGAINST YEN ON NEWS OF JAPAN'S EXPANDED SURPLUS BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR SPENT WEDNESDAY CHALKING UP A SERIES OF HISTORICAL LOWS AGAINST THE YEN ON NEWS THAT JAPAN'S HUGE TRADE SURPLUS HAD EXPANDED FURTHER BUT THE US CURRENCY ENDED SLIGHTLY HIGHER AGAINST THE MARK AS INVESTORS RUSHING TOWARD THE YEN DEPRESSED THE GERMAN CURRENCY TOO LATE IN NEW YORK THE DOLLAR WAS CHANGING HANDS AT 10364 YEN DOWN FROM 10470 YEN LATE TUESDAY IN NEW YORK AND AFTER SETTING A NEW INTRADAY LOW OF 10353 YEN LATE DURING THE NORTH AMERICAN DAY THE US CURRENCY ALSO WAS QUOTED AT 17220 MARKS UP FROM 17170 MARKS STERLING WAS TRADING AT 14703 UP FROM 14672 THE MARK MEANWHILE ENDED AT 6017 YEN COMPARED WITH 6098 YEN LATE TUESDAY ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10358 YEN AND 17177 MARKS THE JAPANESE CURRENCY ALREADY WAS NEAR THE TOP OF ITS RECENT RANGES WHEN THE JAPANESE FINANCE MINISTRY ANNOUNCED THE TRADE DATA NEAR THE CLOSE OF ASIAN TRADING WORLDWIDE IT SAID JAPAN'S TRADE SURPLUS WAS 1182 BILLION IN JULY UP FROM 923 BILLION A YEAR EARLIER AND SUBSTANTIALLY ABOVE THE 105 BILLION SURPLUS PREDICTED BY A DOW JONES CAPITAL MARKETS SURVEY OF ECONOMISTS JAPAN'S SURPLUS WITH THE US WAS 468 BILLION IN THE MONTH UP FROM 381 BILLION IN JULY 1992 AFTER RELEASE OF THE DATA THE DOLLAR IMMEDIATELY FELL TO A NEW HISTORICAL LOW OF 10365 YEN IT WEAKENED FURTHER THROUGHOUT WEDNESDAY'S TRADING HITTING BOTH AN INTRADAY LOW AND A HISTORICAL LOW OF 10353 YEN JAPAN'S TRADE SURPLUSES ARE BEARISH FOR THE DOLLAR BECAUSE THEY LEAVE JAPANESE BUSINESS WITH A HUGE SURPLUS OF DOLLARS RECEIVED AS PAYMENT FOR EXPORTS TO PAY EMPLOYEES AND STOCKHOLDERS WITHIN JAPAN EXPORTERS MUST SELL THE DOLLARS FOR YEN DEPRESSING THE VALUE OF THE US CURRENCY ALTHOUGH THE BANK OF JAPAN REPEATEDLY SOLD YEN AND BOUGHT DOLLARS IN A BID TO SLOW THE YEN'S RISE TRADERS SAID THE INTERVENTION WASN'T VERY EFFECTIVE IN THE FACE OF THE MARKET'S ENTHUSIASM FOR THE YEN DENNIS PETTIT A VICE PRESIDENT AT LONGTERM CREDIT BANK IN JAPAN SAID IT WAS CLEAR THAT THE JAPANESE AUTHORITIES WERE UNHAPPY WITH THE YEN'S STRENGTH BUT THAT THEIR OPEN DISMAY ABOUT YEN LEVELS WAS UNLIKELY TO HOLD BACK THE CURRENCY THE ONLY COMMENTS THAT COULD STOP THE YEN'S RISE NOW HE SAID WOULD BE STATEMENTS BY THE CLINTON ADMINISTRATION THAT THE YEN HAD STRENGTHENED SUFFICIENTLY IF THAT HAPPENED THE MARKET WOULD BE VERY SURPRISED MR PETTIT SAID ADDING THE US ADMINISTRATION IS NOT UNCOMFORTABLE WITH THE DIRECTION OF THE DOLLAR IN THE PAST CLINTON ADMINISTRATION OFFICIALS HAVE LAUDED THE STRONG YEN AS A MEANS FOR REDUCING JAPAN'S TRADE SURPLUS OR AS A TOOL TO FORCE JAPAN TO NEGOTIATE SERIOUSLY ABOUT OPENING ITS MARKETS TO FOREIGN PRODUCTS A STRONGER YEN MAKES JAPANESE PRODUCTS LESS COMPETITIVE BY INCREASING THEIR PRICES IN FOREIGN COUNTRIES WITH THE YEN SEEN LIKELY TO CONTINUE APPRECIATING IT ATTRACTED BUYING FROM HOLDERS OF MARKS AS WELL THE GERMAN CURRENCY FINISHED LOWER AGAINST MOST CURRENCIES WEDNESDAY WEIGHED IN PART BY PROFITTAKING FROM ITS BIG MOVE UP AGAINST STERLING TUESDAY THE MARK WAS LOWER AGAINST MOST OF THE WEAKER CURRENCIES IN THE EXCHANGE RATE MECHANISM OR ERM OF THE EUROPEAN MONETARY SYSTEM AFTER A ANOTHER SLIM INTERESTRATE CUT BY FRANCE RENEWED HOPE THAT BIGGER RATE CUTS WOULD SOON MATERIALIZE AND HELP REVIVE EUROPEAN ECONOMIES 9308120042 930812 INTERNATIONAL GPA TO PARE STAFF BY 21 AS PART OF RESTRUCTURING SHANNON IRELAND GPA GROUP PLC THE AIRCRAFTLEASING GIANT WILL SLASH EMPLOYMENT BY 21 AS PART OF ITS RESTRUCTURING EFFORTS THE COMPANY SAID IT WILL REDUCE ITS EMPLOYMENT TO 185 PEOPLE FROM 233 PEOPLE BY THE TIME THE RESTRUCTURING IS COMPLETED PROBABLY THIS AUTUMN ALTHOUGH GPA HAS REPEATEDLY INSISTED ITS CORE AIRCRAFTLEASING BUSINESS CONTINUES TO THRIVE THE COMPANY HAS FACED A FINANCING CRISIS SINCE A 1 BILLION GLOBAL SHARE OFFERING WAS PULLED FROM THE MARKETS IN JUNE LAST YEAR FOR LACK OF INTEREST AS A RESULT IT HAS HAD TO RESTRUCTURE ITS 55 BILLION OF DEBT FIND FRESH EQUITY AND SCALE BACK ITS ACTIVITIES GPA SAID IT HOPES TO ELIMINATE SOME JOBS BY NOT REPLACING RETIRING EMPLOYEES AND BY TRANSFERRING PEOPLE TO AFFILIATED COMPANIES BUT THE COMPANY STILL EXPECTS TO LAY OFF ABOUT 30 OF ITS EMPLOYEES IN IRELAND AND 10 OVERSEAS GPA IS NEGOTIATING WITH GE CAPITAL CORP A UNIT OF GENERAL ELECTRIC CO OF THE US ON A BAILOUT PLAN THAT WOULD ALLOW THE IRISH COMPANY TO AVERT BANKRUPTCY THAT DEAL IS EXPECTED TO BE COMPLETED EITHER LATER THIS MONTH OR IN SEPTEMBER AND MUST THEN GO BEFORE AN EXTRAORDINARY MEETING OF GPA SHAREHOLDERS 9308120041 930812 BUSINESS BRIEF MIDWAY AIR TRANSPORTATION INC CHICAGOBASED CARRIER PLANS FLIGHTS TO NORTHEAST CITIES MIDWAY AIR TRANSPORTATION INC A STARTUP CARRIER SAID IT WILL BEGIN FLYING FROM CHICAGO'S MIDWAY AIRPORT TO SEVERAL NORTHEAST US CITIES IN NOVEMBER THE CHICAGO CARRIER WHICH PURCHASED RIGHTS TO THE MIDWAY NAME THIS MONTH WAS LAUNCHED WITH 251 MILLION IN FINANCING FROM INVESTOR GROUPS IN ILLINOIS FLORIDA AND TEXAS ACCORDING TO KENNETH T CARLSON MIDWAY'S PRESIDENT MR CARLSON WAS A PRINCIPAL IN MIDWAY AIRLINES WHICH FOLDED LAST YEAR THE NEW AIRLINE HAS ARRANGED TO LEASE EIGHT NV FOKKER 100 TWINENGINE JETS TO BEGIN SERVICE THE FIRST OF THE 100SEAT JETS WILL BE DELIVERED IN OCTOBER MIDWAY EVENTUALLY COULD OPERATE AS MANY AS 24 F100S AND SERVE 12 ROUTES MR CARLSON SAID MIDWAY SAID IT INITIALLY INTENDS TO FLY TO NEW YORK'S LAGUARDIA AND WASHINGTON'S NATIONAL AIRPORTS AND TO BOSTON AND PHILADELPHIA THE COMPANY IS NEGOTIATING FOR LANDING SLOTS AT THOSE AIRPORTS MIDWAY PLANS TO OFFER UNRESTRICTED FARES THAT ARE LOWER THAN MAJOR AIRLINES' FULLFARE COACH TICKETS AS WELL AS A FREQUENTFLIER PROGRAM THAT ALLOWS MILEAGE REDEMPTIONS ON OTHER CARRIERS' PROGRAMS 9308120040 930812 TECHNOLOGY & HEALTH STUDY CITES BERLEX'S SOTALOL FOR EFFECT ON ARRHYTHMIA BOSTON A STUDY COMPARING SEVEN PRESCRIPTION DRUGS TO TREAT A SEVERE FORM OF ARRHYTHMIA A LIFETHREATENING HEART CONDITION FOUND BERLEX LABORATORIES INC'S SOTALOL THE MOST EFFECTIVE IN PREVENTING ARRHYTHMIA RECURRENCE AND DEATH THAT CONCLUSION HOWEVER WAS CHALLENGED AS TOO STRONG BY OTHER RESEARCHERS WHO SAID THE STUDY ONLY RAISED THE POSSIBILITY THAT THE DRUG IS MORE EFFECTIVE THAN THE OTHER SIX DRUGS ARRHYTHMIA IS A DANGEROUS HEART CONDITION THAT PRODUCES IRREGULAR HEARTBEATS AND CAN LEAD TO SUDDEN DEATH AN ESTIMATED 450000 AMERICANS DIE EACH YEAR FROM THE MOST SEVERE FORM OF THE DISEASE VENTRICULAR TACHYARRHYTHMIA SOTALOL DEVELOPED BY BRISTOLMYERS SQUIBB CO AND LICENSED IN THE US TO BERLEX OF WAYNE NJ WAS INTRODUCED LATE LAST YEAR IN THE US UNDER THE BRAND NAME BETAPACE RESEARCHERS LED BY JAY W MASON OF THE UNIVERSITY OF UTAH MEDICAL CENTER COMPARED SEVEN DRUGS TO TREAT VENTRICULAR TACHYARRHYTHMIA IN 486 PATIENTS THE STUDY WAS PUBLISHED IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE BUT JOURNAL EDITORIALISTS AND MICHAEL DOMANSKI CHIEF OF CLINICAL TRIALS BRANCH AT THE NATIONAL HEART LUNG AND BLOOD INSTITUTE SAID THE STUDY'S DESIGN COULD HAVE ALLOWED BIASES TO AFFECT THE RESULTS AND SAID MORE RESEARCH IS NEEDED 9308120039 930812 BUSINESS BRIEF TELEDYNE INC EPA SUIT CHARGES CONCERN VIOLATED CLEAN WATER ACT THE ENVIRONMENTAL PROTECTION AGENCY SUED TELEDYNE INC FOR ALLEGEDLY DISCHARGING TOXIC WATER FROM A SAN DIEGO AERONAUTICAL FACILITY INTO A CITY SEWAGETREATMENT PLANT THE LAWSUIT FILED IN A SAN DIEGO FEDERAL COURT CHARGES THAT BETWEEN JULY 1988 AND MARCH 1990 LOS ANGELESBASED TELEDYNE FLUSHED WATER FROM A METAL COATING AND ETCHING OPERATION THAT CONTAINED CHROMIUM IN LEVELS ABOVE FEDERAL PRETREATMENT STANDARDS A VIOLATION OF THE 1972 CLEAN WATER ACT TELEDYNE ALSO VIOLATED THE ACT BY DILUTING THE CHEMICALS WITH WATER AS A SUBSTITUTE FOR TREATMENT THE SUIT ALLEGES IT SEEKS UNSPECIFIED CIVIL PENALTIES OF AS MUCH AS 25000 PER DAY PER VIOLATION A SPOKESWOMAN FOR THE COMPANY SAID IT BELIEVES THE SUIT IS NOT WELL FOUNDED AND WILL VIGOROUSLY DEFEND ITSELF SHE DIDN'T ELABORATE 9308120038 930812 GEORGIAPACIFIC LABOR ACCORD ATLANTA GEORGIAPACIFIC CORP SAID TWO UNIONS HAVE VOTED TO RATIFY A FOURYEAR COLLECTIVE BARGAINING AGREEMENT PROPOSED BY THE COMPANY LAST MONTH THE FORESTPRODUCTS CONCERN SAID THE CONTRACT COVERS 2500 EMPLOYEES AT SIX PLYWOOD PLANTS TWO STUDMILLS AND A PARTICLEBOARD PLANT THE CONTRACT WAS APPROVED BY MEMBERS OF THE INTERNATIONAL WOODWORKERS OF AMERICA AND THE UNITED BROTHERHOOD OF CARPENTERS AND JOINERS 9308120037 930812 THE NEW TAX LAW SEARCHING FOR SHELTER HOME LOANS ARE TEMPTING BUT TRICKY BY LYNN ASINOF STAFF REPORTER OF THE WALL STREET JOURNAL NEW HIGHER TAX RATES ARE PROMPTING MANY PEOPLE TO TAKE A SECOND LOOK AT THEIR ONLY REMAINING TAX DEDUCTION OF ANY SIGNIFICANCE HOME MORTGAGE INTEREST WITH THE TOP STATED INCOME TAX RATES NOW 36 AND 396 UP FROM 31 UPPERINCOME HOMEOWNERS WILL FIND THAT THE VALUE OF THEIR MORTGAGE INTEREST DEDUCTION HAS INCREASED LET'S ASSUME I BORROW FOR 7 ON A 0YEAR FIXED BASIS SAYS STEVEN WEINSTEIN NATIONAL DIRECTOR OF PERSONAL FINANCIAL PLANNING AT ARTHUR ANDERSEN IF I AM IN THE 396 BRACKET MY AFTERTAX COST OF DEBT IS 42 THAT'S DOWN FROM 48 UNDER THE OLD TOP RATE NOT A HUGE DIFFERENCE PERHAPS BUT WITH UNCLE SAM PICKING UP MORE OF THE INTEREST EXPENSE SOME WELLHEELED PEOPLE MAY FIND THAT IT MAKES SENSE TO TAKE THE BIGGER MORTGAGE THAT WOULD ALLOW THEM TO BUY A MORE EXPENSIVE HOME HOMEOWNERS COULD FIND THIS A GOOD TIME TO BORROW MONEY FOR AN ADDITION TO THE HOUSE STILL OTHERS MAY DECIDE IT'S TIME TO USE THEIR HOME EQUITY TO LEVERAGE A PORTFOLIO OF STOCKS FOR LONGTERM INVESTING BUT BEFORE YOU RUSH OUT AND BOOST YOUR MORTGAGE DEBT TAKE A CLOSE LOOK AT THE RULES MORTGAGE INTEREST DEDUCTIONS ARE GOVERNED BY SOME COMPLEX REGULATIONS UNLESS YOU UNDERSTAND THEM YOU CAN ACTUALLY END UP INCREASING YOUR TAX BILL WILLIAM G BRENNAN A WASHINGTONBASED PARTNER WITH ACCOUNTANTS ERNST & YOUNG CITES ONE CLIENT WHO BOUGHT A HOUSE FOR 1 MILLION CASH THEN LATER DECIDED HE NEEDED THE MONEY AND GOT AN 800000 MORTGAGE WHEN THE CLIENT SHOWED UP AT MR BRENNAN'S DOOR WITH HIS TAX FORMS HE EXPECTED TO BE ABLE TO WRITE OFF THE MORTGAGE INTEREST INSTEAD HE FOUND 700000 OF THAT LOAN OFFERED NO TAX DEDUCTIONS AT ALL THE REASON THE INTERNAL REVENUE SERVICE NO LONGER VIEWS ALL MORTGAGE INTEREST THE SAME WAY SINCE 1987 IT HAS DIVIDED MORTGAGE INTEREST INTO TWO TYPES THE FIRST IS INTEREST ON DEBT INCURRED TO BUY BUILD OR SUBSTANTIALLY IMPROVE EITHER A PRIMARY OR SECOND HOME THAT'S CALLED ACQUISITION DEBT YOU CAN DEDUCT INTEREST ON A TOTAL OF AS MUCH AS 1 MILLION OF ACQUISITION DEBT BUT IF YOU ALREADY OWN YOUR HOME YOU CAN'T INCREASE YOUR ACQUISITION DEBT UNLESS YOU BORROW FOR EXAMPLE TO BUILD AN ADDITION OR REMODEL THE KITCHEN THE SECOND KIND OF DEBT IS HOME EQUITY DEBT THIS INCLUDES NOT ONLY HOMEEQUITY LOANS BUT ANY INCREASE IN THE SIZE OF YOUR MORTGAGE WHEN YOU REFINANCE HERE THE LIMITS ARE FAR LOWER WITH INTEREST ON ONLY 100000 OF HOMEEQUITY DEBT DEDUCTIBLE ON YOUR INCOME TAXES PEOPLE WHO FALL UNDER THE ALTERNATIVE MINIMUM TAX WHICH CAN BE TRIGGERED BY SUCH THINGS AS EXERCISING STOCK OPTIONS ARE IN A SPECIAL CATEGORY THEY GET NO TAX DEDUCTION FOR ANY INTEREST PAID ON HOMEEQUITY DEBT THERE ARE ADDITIONAL CONSIDERATIONS IF YOU WANT TO TAP YOUR HOME EQUITY TO BUILD AN INVESTMENT PORTFOLIO FOR ONE THING DON'T USE THE MONEY TO INVEST IN TAXEXEMPT MUNICIPAL BONDS OR YOUR INTEREST DEDUCTION MAY BE DENIED IN FACT YOU DON'T WANT TO BE IN FIXEDINCOME INVESTMENTS AT ALL THE KEY SAYS TIM KOCHIS A SAN FRANCISCO FINANCIAL PLANNER IS TO GET AN AFTERTAX RETURN HIGHER THAN THE COST OF YOUR MORTGAGE MONEY THAT MR KOCHIS SAYS SHOULDN'T BE HARD AS LONG AS YOU INVEST IN STOCKS OR STOCK MUTUAL FUNDS YOU OUGHT TO EXPECT YOUR AFTERTAX EQUITY RETURN TO BE IN A POSITION OF 6 7 OR 8 DEPENDING ON THE LEVEL OF RISK YOU ARE TAKING HE SAYS BUT THIS APPROACH ISN'T FOR EVERYONE TO BEGIN WITH IT MAKES NO SENSE AT ALL IF YOU AREN'T WILLING TO PUT YOUR MONEY INTO STOCKS IF YOU DON'T INVEST FOR THE LONG TERM OR IF YOU ARE GOING TO NEED THE MONEY IN THE NEXT FIVE YEARS YOU ALSO PROBABLY SHOULDN'T RUN OUT AND REFINANCE YOUR HOUSE UNLESS YOU ARE LOOKING TO LOWER YOUR MORTGAGE RATE THE INVESTMENT STRATEGY JUST DOESN'T JUSTIFY THE COSTS OF REFINANCING WHICH CAN RUN SEVERAL THOUSAND DOLLARS STEVEN ENRIGHT A RIVER VALE NJ FINANCIAL PLANNER SAYS ONE OF HIS CLIENTS RECENTLY ADDED 25000 TO HER EQUITY LINE OF CREDIT IN ORDER TO INCREASE HER INVESTMENTS THE CONCEPT WORKED HE SAYS BECAUSE SHE GOT A FIXEDRATE HOME EQUITY LINE WITH NO CLOSING COSTS EVEN IF YOU KEEP THE COSTS DOWN THERE ARE OTHER REASONS NOT TO TURN HOME EQUITY INTO A STOCK PORTFOLIO CLEVELAND TAX ATTORNEY TERRENCE PERRIS RECALLS THAT THE 1980S OFFERED A GREAT TAX SITUATION FOR COMPANIES TO LEVERAGE THEMSELVES TOO AND LOOK WHAT HAPPENED BANKRUPTCY INDEED MANY OF THE PEOPLE BEST ABLE TO TAKE ADVANTAGE OF THIS STRATEGY APPARENTLY WANT NOTHING TO DO WITH IT INSTEAD OF BORROWING MORE ROBERT E WILLARD A COLORADO SPRINGS COLO FINANCIAL PLANNER SAYS HIS WEALTHIER CLIENTS ARE PAYING OFF THEIR MORTGAGES MY CLIENTS ARE UNIVERSALLY FURIOUS AT THIS TAX BILL BECAUSE THEY FEEL IT WILL BE BAD FOR THE ECONOMY HE SAYS THEIR REASON FOR NOT WANTING TO INCREASE DEBT TO PROTECT AGAINST THAT FACTOR 9308120036 930812 BUSINESS BRIEF WOOLWORTH CORP SECONDQUARTER NET INCOME PLUNGES 93 TO 2 MILLION WOOLWORTH CORP BLAMED THE SLOW ECONOMY AND LOW CONSUMER CONFIDENCE FOR A SHARP DROP IN SECONDQUARTER EARNINGS NET INCOME FELL 93 TO 2 MILLION OR ONE CENT A SHARE FROM 33 MILLION OR 25 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 26 TO 229 BILLION FROM 223 BILLION A WEAK PERFORMANCE CONSIDERING THAT THE NEW YORK COMPANY OPENED 614 NEW STORES IN THE PAST YEAR ANALYSTS SAID IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING WOOLWORTH SHARES FELL 875 CENTS OR 34 TO 2475 WOOLWORTH'S CHAIRMAN AND CHIEF EXECUTIVE WILLIAM K LAVIN SAID FACTORS LEADING TO THE QUARTER'S PROFIT DECLINE CONTINUE TO DEPRESS SALES AND GROSS MARGINS MAKING IT UNLIKELY THAT THERE WILL BE A YEARTOYEAR INCREASE IN EARNINGS WOOLWORTH OPERATED 9240 STORES AS OF JULY 31 9308120035 930812 HEALTH CARE REIT INC TOLEDO OHIO HEALTH CARE REIT INC SAID IT CLOSED A COMMITMENT TO LEND AS MUCH AS 4765000 OF CONSTRUCTION FUNDS FOR AN ASSISTEDLIVING FACILITY TO BE LOCATED IN MARYLAND THE CONSTRUCTION LOAN WILL CONVERT TO PERMANENT MORTGAGE FINANCING UPON COMPLETION OF THE FACILITY WHICH WILL BE OWNED BY SUNRISE HOMES OF TOWSON LIMITED PARTNERSHIP HEALTH CARE REIT BASED IN TOLEDO IS A REAL ESTATE INVESTMENT TRUST THAT INVESTS IN HEALTHCARE FACILITIES PRIMARILY NURSING HOMES 9308120034 930812 POLITICS & POLICY CLINTON TO LIFT HIRING BAN ON OUSTED AIR CONTROLLERS WASHINGTON PRESIDENT CLINTON PLANS TO ANNOUNCE TODAY THAT HE WILL LIFT THE BAN AGAINST HIRING THE AIR TRAFFIC CONTROLLERS FIRED 12 YEARS AGO FOR AN ILLEGAL STRIKE AN ADMINISTRATION OFFICIAL SAID BUT THE CONTROLLERS PROBABLY WILL LOSE THEIR SENIORITY AND HAVE TO COMPETE FOR JOBS WITH NEWLY TRAINED APPLICANTS AND EXMILITARY CONTROLLERS THE NATIONAL AIR TRAFFIC CONTROLLERS ASSOCIATION WHICH TOOK OVER AFTER PRESIDENT REAGAN BROKE THE PATCO UNION IN 1981 SUPPORTS LIFTING THE BAN BUT ARGUES THAT CURRENT CONTROLLERS SHOULDN'T BE EDGED OUT FOR PROMOTIONS PRESIDENT CLINTON HAD PROMISED DURING THE 1992 CAMPAIGN TO REEXAMINE THE PATCO BAN LIFTING IT NOW WILL BE A LARGELY SYMBOLIC ACTION BECAUSE THE FEDERAL AVIATION ADMINISTRATION HAS A HIRING FREEZE STILL THE AGENCY WHICH HAS 17728 CONTROLLERS IS EXPECTED TO HIRE ABOUT 200 CONTROLLERS A YEAR STARTING NEXT YEAR IT ISN'T CLEAR HOW MANY OF THE 11400 FIRED CONTROLLERS WILL APPLY FOR JOBS A TELEPHONE HOT LINE RUN BY A FORMER PATCO CONTROLLER SAID A SURVEY OF 926 EXCONTROLLERS FOUND THAT 607 WOULD RATHER GO BACK TO WORK AS CONTROLLERS THAN ACCEPT RETIREMENT BENEFITS IF THEY WERE OFFERED 9308120033 930812 MARKETING & MEDIA TURNER BROADCASTING POSTS DROP OF 10 IN 2NDQUARTER PROFIT ATLANTA TURNER BROADCASTING SYSTEM INC SAID SECONDQUARTER NET INCOME FELL 10 HURT BY A BOOST IN ITS INCOMETAX PROVISION THE CABLE PROGRAMMING COMPANY SAID NET FELL TO 31 MILLION OR 12 CENTS A SHARE COMPARED WITH 35 MILLION OR 14 CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED 19 TO 487 MILLION FROM 410 MILLION REFLECTING DOUBLEDIGIT ADVERTISING INCREASES IN ITS NEWS AND ENTERTAINMENT DIVISIONS THE RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS TURNER'S SECONDQUARTER OPERATING PROFIT ROSE 9 TO 97 MILLION BUT THE COMPANY SAID IT INCREASED ITS INCOMETAX PROVISION TO REFLECT HIGHER PRETAX INCOME THIS YEAR AND CERTAIN NONDEDUCTIBLE INTERNATIONAL COSTS THE COMPANY SAID SECONDQUARTER RESULTS BENEFITED FROM ADDING MORE SPORTS PROGRAMMING TO ITS ENTERTAINMENT NETWORKS INCLUDING ITS TBS SUPERSTATION THIS MOVE CONTRIBUTED TO A 21 MILLION INCREASE IN ADVERTISING REVENUE IN THE ENTERTAINMENT SEGMENT THE DIVISION'S SECONDQUARTER REVENUE ROSE 17 TO 2366 MILLION PRODUCING A 14 GAIN IN OPERATING PROFIT TO 69 MILLION IN THE NEWS SEGMENT WHICH INCLUDES THE FLAGSHIP CABLE NEWS NETWORK SECONDQUARTER REVENUE INCREASED 15 TO 1536 MILLION ADVERTISING REVENUE CLIMBED 14 TO 83 MILLION PRIMARILY BECAUSE OF RATE INCREASES THE COMPANY SAID OPERATING PROFITS IN THE DIVISION ROSE 18 TO 54 MILLION FOR THE QUARTER THE COMPANY WHICH OWNS THE ATLANTA BRAVES BASEBALL TEAM ALSO REPORTED A 25 JUMP IN SPORTS REVENUE TO 35 MILLION IN THE SECOND QUARTER TURNER SHOWED A 17 MILLION PROFIT IN THE SPORTS DIVISION FOR THE QUARTER COMPARED WITH A 256000 LOSS A YEAR EARLIER FOR THE SIX MONTHS TURNER REPORTED A 255 MILLION LOSS OR 96 CENTS A SHARE BECAUSE OF A 306 MILLION ONETIME CHARGE AGAINST EARNINGS THE CHARGE RESULTED FROM AN ACCOUNTING CHANGE RELATED TO INCOME TAXES IN THE PRIORYEAR PERIOD TURNER HAD NET INCOME OF 35 MILLION OR 14 CENTS A SHARE REVENUE ROSE 14 TO 885 MILLION FROM 775 MILLION IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE TURNER CLASS A SHARES FELL 75 CENTS A SHARE OR 34 TO CLOSE AT 21 WHILE CLASS B SHARES FELL 625 CENTS OR 29 TO CLOSE AT 21125 9308120032 930812 BUSINESS BRIEF AMTECH CORP SECONDQUARTER NET DOUBLED ON A 57 INCREASE IN SALES AMTECH CORP'S SECONDQUARTER EARNINGS DOUBLED ON A 57 INCREASE IN SALES THE DALLASBASED MAKER OF AUTOMATIC VEHICLE AND EQUIPMENT IDENTIFICATION SYSTEMS POSTED NET INCOME OF 24 MILLION OR 16 CENTS A SHARE UP FROM A YEAREARLIER 12 MILLION OR NINE CENTS A SHARE ON SLIGHTLY FEWER SHARES OUTSTANDING SALES ROSE TO 133 MILLION FROM 84 MILLION THE RESULTS EXCEEDED ANALYSTS' MEAN ESTIMATE OF 10 CENTS A SHARE AS REPORTED BY THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM BARRY BOSAK AN ANALYST AT SMITH BARNEY HARRIS UPHAM & CO IN NEW YORK SAID THE COMPANY BENEFITED FROM CONTINUING SALES OF ELECTRONIC IDENTIFICATION EQUIPMENT TO US RAILROAD OPERATORS THE AMERICAN ASSOCIATION OF RAILROADS NAMED AMTECH'S AUTOMATIC EQUIPMENT IDENTIFICATION TECHNOLOGY AS THE MANDATORY STANDARD FOR THE INDUSTRY LAST YEAR 9308120031 930812 ENTERPRISE SOUTH BRONX ADDRESS CAN GIVE A FIRM REVERSE CACHET FULCIRCLE WILLOW PERIPHERALS ARE TWO BOOSTERS OF LOCATING THERE BY EUGENE CARLSON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN BLUECHIP CLIENTS OF FULCIRCLE BALLAST RECYCLERS QUESTION THE SMALL FIRM'S LOCATION IN ONE OF THE TOUGHEST AREAS OF THE CRIMERIDDEN SOUTH BRONX PRESIDENT MITCHELL DONG TRIES TO GIVE THE NEIGHBORHOOD A POSITIVE SPIN WE'RE JUST A COUPLE MILES FROM YANKEE STADIUM HE SAYS LEFT UNSAID EVEN THE YANKEES ARE THINKING ABOUT MOVING WHEN IT COMES TO BUSINESS CLIMATE MOST ENTREPRENEURS THINK THE SOUTH BRONX RATES SOMEWHERE NEAR PURGATORY IT IS THE LANDSCAPE OF THE LEGENDARY POLICE PRECINCT KNOWN AS FORT APACHE A PLACE WHERE CHURCHES SURROUND THEMSELVES WITH FENCES TOPPED WITH RAZOR WIRE AND WHERE HOOKERS WALK THE STREETS AT HIGH NOON YET SOME ENTREPRENEURS ARE ACTUALLY CHOOSING THE SOUTH BRONX WE'VE WORKED WITH 40 OR 50 STARTUPS IN THE PAST THREE YEARS SAYS NANCY LASHER INDUSTRIAL DEVELOPMENT DIRECTOR OF THE SOUTH BRONX ECONOMIC DEVELOPMENT CORP SHE SAYS MOST OF THE COMPANIES HAVE MARKETING TIES TO THE NEW YORK METROPOLITAN AREA AND CHOSE THE SOUTH BRONX OVER OTHER SITES IN THE REGION FULCIRCLE BELIEVES IT OWES MUCH OF ITS SUCCESS TO ITS SOUTH BRONX ADDRESS AFTER TWO YEARS OF RIPPING APART PCBLADEN BALLASTS FROM DISCARDED FLUORESCENT LIGHT FIXTURES THE FIRM HAS BECOME THE NATION'S LARGEST RECYCLER OF PCBS FROM THIS SOURCE BRIN MCCAAG FULCIRCLE'S VICE PRESIDENT SAYS CONVENIENT ACCESS TO INTERSTATE HIGHWAYS AND ANNUAL RENT OF ONLY 475 A SQUARE FOOT HELP OFFSET THE STIGMA OF LOCATING FULCIRCLE'S HEADQUARTERS AMID THE AUTO JUNKYARDS AND SCRAP METAL DEALERSHIPS OF THE HUNTS POINT SECTION OF THE BRONX BUT THE BIGGEST ADVANTAGE HE SAYS IS THE PRESENCE OF A RELIABLE WORK FORCE WILLING TO WORK EIGHTHOUR SHIFTS AROUND THE CLOCK FOR 6 AN HOUR AND NO BENEFITS WE'VE HAD VIRTUALLY NO TURNOVER SAYS MR MCCAAG WHEN THESE GUYS GET JOBS THEY'RE FAITHFUL AS CAN BE ADDS JOHN BORRERO FULCIRCLE'S PRODUCTION SUPERVISOR I'VE GOT 10 PEOPLE A DAY KNOCKING ON THE DOOR LOOKING FOR A JOB MR MCCAAG 30 YEARS OLD A WHARTON BUSINESS SCHOOL GRADUATE AND FORMER WALL STREET INVESTMENT BANKER CONCEDES IT HAS BEEN HARD CONVINCING CUSTOMERS WORRIED ABOUT TOXIC WASTE LIABILITY TO SHIP THEIR OLD BALLASTS TO FULCIRCLE'S BRONX ADDRESS FOR RECYCLING BALLASTS REGULATE THE FLOW OF ELECTRICITY TO THE FLUORESCENT TUBES IF THEY WERE MADE YEARS AGO THEY CONTAIN THE HIGHLY TOXIC PCB CHEMICAL WHICH REQUIRES SPECIAL DISPOSAL MOST OF OUR CUSTOMERS ARE FROM MIDDLE AMERICA MR MCCAAG SAYS THEY SAW THE MOVIE FORT APACHE' THEY THINK JIMMY HOFFA'S BURIED HERE NONETHELESS FULCIRCLE HAS ATTRACTED SUCH CLIENTS AS EASTMAN KODAK CO MAYTAG CO WESTINGHOUSE CORP INDIANA UNIVERSITY CONSOLIDATED EDISON CO OF NEW YORK AND THE PHOENIX CITY GOVERNMENT MR MCCAAG ADMITS TO HAVING BEEN NERVOUS IN THE EARLY DAYS WHEN HE USED TO WALK THE MILE FROM THE SUBWAY STATION DOWN HUNTS POINT AVENUE TO HIS OFFICE BUT CRIME HASN'T TURNED OUT TO BE A BIG PROBLEM HE INSISTS EVERY MORNING THERE ARE DOZENS OF CRACK VIALS IN FRONT OF THE BUILDING BUT IT HASN'T AFFECTED US YET THE EXECUTIVE SAYS IN TWO YEARS NO ONE HAS BEEN HELD UP OR MUGGED AT OR NEAR THE PLANT HE SAYS I PERSONALLY ENJOY COMING HERE AND PROVING THAT A BUSINESS CAN CREATE JOBS AND MAKE MONEY MR MCCAAG SAYS HE AND MR DONG 40 FOUNDED FULCIRCLE IN 1990 WITH A STARTUP INVESTMENT OF 200000 THE FIRM HAS GROWN TO 65 WORKERS AND SALES THIS YEAR WILL APPROACH 10 MILLION THE EXECUTIVES SAY MR MCCAAG NOW DRIVES TO THE PLANT THE EXECUTIVE DOES ADMIT TO ONE PERSONAL PEEVE THE NEAREST RESTAURANT IS FOUR BLOCKS AWAY AND IT'S TERRIBLE SO HE LUNCHES ON A SANDWICH THAT HE BUYS AT A MANHATTAN DELICATESSAN ON THE WAY TO WORK ANOTHER SOUTH BRONX SMALLBUSINESS BOOSTER IS JONATHAN VALL PRESIDENT OF WILLOW PERIPHERALS A COMPUTER EQUIPMENT MAKER WILLOW MOVED FROM MANHATTAN IN 1986 WHEN THE CITY GOVERNMENT OFFERED 8100 SQUARE FEET IN A ONCEABANDONED BUILDING IN THE SOUTH BRONX'S PORT MORRIS SECTION FOR ONLY 2 A SQUARE FOOT PER YEAR THE SPACE WAS WIDE OPEN THERE WERE TONS OF WINDOWS MR VALL SAYS THE RENT HAS SINCE CLIMBED TO ABOUT 350 A SQUARE FOOT THE LOCATION HAS ITS UPS AND DOWNS MR VALL ADMITS LACK OF OTHER SMALL TECHNOLOGY COMPANIES IN THE NEIGHBORHOOD MAKES IT HARD TO PERSUADE VENDOR REPRESENTATIVES TO PAY A VISIT AND HIRING SKILLED HELP IS A PROBLEM YOU PUT AN AD IN THE NEW YORK TIMES SOMEBODY CALLS AND SAYS WHERE ARE YOU' YOU SAY THE SOUTH BRONX NEXT THING YOU HEAR IS THE DIAL TONE BUT MR VALL SAYS THIS IS A PLACE YOU CAN KEEP YOUR COSTS DOWN HE NOTES THAT THE CITY'S WHOLESALE FLOWER MARKET IS MOVING IN A FEW BLOCKS AWAY HE DOWNPLAYS THE CRIME FACTOR EVEN WHILE SHOWING A VISITOR A HOLE IN AN INTERIOR WALL CAUSED BY A TODDLER IN A NEIGHBORING APARTMENT HOUSE WHO FIRED A 9MM REVOLVER OUT THE WINDOW THE HOLE IS SURROUNDED BY A SMALL WOODEN FRAME AND A LABEL READING GENUINE BRONX BULLET HOLE AT FULCIRCLE MR DONG SAYS BEING IN THE NEW YORK AREA WAS IMPORTANT WHEN HIS COMPANY FIRST OPENED ITS DOORS WHEN YOU'RE DOING LIGHTS YOU THINK OF THE SKYLINE OF MANHATTAN THERE'S THE MARKET NOW THE COMPANY IS PULLING FLUORESCENT BALLASTS FROM CLIENTS NATIONWIDE AT A RATE OF THREE MILLION A YEAR TRUCKS LOADED WITH STEEL BARRELS FULL OF 3 1/2 POUND BALLASTS ARRIVE DAILY AT THE FIRM'S CONCRETEWALLED WAREHOUSE JUST A FEW BLOCKS OFF THE BRUCKNER EXPRESSWAY THERE A HALFDOZEN WORKERS STANDING AROUND A CRUDE WORKBENCH RIP OPEN THE BALLASTS THROWING ALUMINUMCLAD CAPACITORS CONTAINING AN OUNCE OF PCB AND STEEL COPPER AND ALUMINUM COMPONENTS INTO SEPARATE CONTAINERS FOR RECYCLING USERS PAY FULCIRCLE ABOUT 3 TO ACCEPT EACH BALLAST AND THE COMPANY EARNS ADDITIONAL MONEY ON THE SCRAP METAL IT SELLS IT PAYS A TEXAS COMPANY TO BURN THE PCBS TO BE SURE FULCIRCLE DIDN'T HAVE A LOT OF CHOICES WHEN IT SHOPPED FOR A RECYCLING SITE A COMPANY HANDLING HAZARDOUS WASTE CAN'T BE IN DOWNTOWN WHITE PLAINS MR DONG SAYS NOW THAT IT IS FARING WELL IN THE SOUTH BRONX FULCIRCLE PLANS TO DIVERSIFY INTO RECYCLING OTHER WASTE PRODUCTS I THINK WE'RE IN THERE THE SOUTH BRONX FOR THE LONG TERM MR DONG SAYS 9308120030 930812 INTERNATIONAL FERRUZZI'S PROBLEMS ARE ITALY'S AS WELL INVESTORS AWAITING ASSET SALES MUST GAUGE DEPTH OF CRISIS BY PETER TRUELL AND MAUREEN KLINE STAFF REPORTERS OF THE WALL STREET JOURNAL MILAN IT'S THE SECONDLARGEST PRIVATE COMPANY IN ITALY ITS FORMER CHAIRMAN RECENTLY KILLED HIMSELF IT JUST WROTE ITS SHARE CAPITAL DOWN BY 1165 TRILLION LIRE 7175 MILLION AND IT KEEPS FINDING NEW HOLES IN ITS BALANCE SHEET INCLUDING HUNDREDS OF MILLIONS OF DOLLARS OF UNDISCLOSED LOSSES STEMMING FROM SPECULATING IN THE CHICAGO FUTURES MARKETS ARE FERRUZZI FINANZIARIA SPA AND ITS KEY SUBSIDARY MONTEDISON SPA JUST A BAD APPLE OR TWO OR ARE THEY SYMPTOMATIC OF MUCH MORE DEEPSEATED PROBLEMS IN THE ITALIAN ECONOMY AND BANKING SYSTEM THE QUESTION WILL WORRY FINANCIERS AND ANALYSTS FOR MONTHS TO COME ESPECIALLY AS THEY LOOK AT THE MANY COMPANIES THAT BOTH THE FERRUZZI GROUP AND THE ITALIAN GOVERNMENT WITH ITS HUGE PRIVATIZATION PLANS INTEND TO SELL OFF TO THE PUBLIC AT HOME AND ABROAD TO RAISE BILLIONS OF DOLLARS TO RESTORE THEIR TATTERED FINANCES A CLUE OF INVESTOR SENTIMENT MAY BE EVIDENT TODAY WHEN FERRUZZI AND MONTEDISON SHARES RESUME TRADING IN MILAN AFTER BEING SUSPENDED TUESDAY AND YESTERDAY WHAT FEEDS INVESTORS' FEARS IS THAT FERRUZZI'S WOES WEAVE THEIR WAY THROUGH THE HIGHEST ECHELONS OF ITALIAN GOVERNMENT AND SOCIETY PROSECUTORS' SWEEPING INVESTIGATION INTO HIGHLEVEL PUBLIC CORRUPTION IN ITALY HAS COME TO FOCUS ON A 1990 TRANSACTION IN WHICH MONTEDISON SOLD ITS 40 STAKE IN ENIMONT A BULK CHEMICAL PRODUCER TO STATE ENERGY COMPANY ENTE NAZIONALE IDROCARBURI OR ENI FOR 28 TRILLION LIRE A MASSIVE OVERPAYMENT CRITICS CHARGE FORMER MONTEDISON EXECUTIVES CARLO SAMA AND GIUSEPPE GAROFANO RECENTLY ALLEGED THAT A CHUNK OF THE MONEY PAID TO MONTEDISON WAS DIVIDED AMONG GOVERNMENT MINISTERS AND THE HEADS OF THE MAIN POLITICAL PARTIES SUCH FORMER SENIOR PUBLIC OFFICIALS AS BRUNO PAZZI THE HEAD OF THE MAIN STOCK MARKET WATCHDOG CONSOB ALSO HAVE BEEN ARRESTED IN CONNECTION WITH THE TRANSACTION FORMER FERRUZZI CHAIRMAN RAUL GARDINI AND FORMER ENI PRESIDENT GABRIELE CAGLIARI RECENTLY KILLED THEMSELVES AFTER THE DISCOVERY OF THEIR ALLEGED INVOLVEMENT IN POLITICAL PAYOFFS INVESTIGATIONS BY AUDITOR DELOITTE & TOUCHE HAVE REVEALED FERRUZZI'S HABIT OF SQUIRRELING AWAY LOSSES IN OBSCURE OVERSEAS SUBSIDIARIES BY SWITCHING MONEY BETWEEN ACCOUNTS FERRUZZI CONCEALED ITS HUGE LOSSES ESTIMATED AT 350 MILLION IN AN ILLFATED 1989 ATTEMPT TO CORNER THE MARKET IN SOYBEANS A FURTHER PROBLEM CREDITORS AND ACCOUNTANTS SAY WAS FERRUZZI'S HABIT OF USING ITS UNPROFITABLE HOLDING COMPANY UNITS TO BORROW MONEY OFTEN IN DOLLARS AT HIGH RATES OF INTEREST THIS WAS THEN CHANNELED TO SUBSIDIARIES THAT PAID MINIMAL LIRA DIVIDENDS IN EXCHANGE THESE MONEYLOSING PRACTICES HABITS BECAME CATASTROPHIC AS THE DOLLAR STRENGTHENED AGAINST EUROPEAN CURRENCIES THIS YEAR EVEN SO THE FINANCIAL ESTABLISHMENT IN MILAN INSISTS ON CALM THIS FERRUZZI SITUATION AND WE HAVE A NUMBER OF OTHERS ARE ALL UNDER CONTROL SAYS PIER CARLO MARENGO MANAGING DIRECTOR OF CREDITO ITALIANO SPA DISCUSSING THE CONDITION OF FERRUZZI WHICH DEFAULTED ON AN ESTIMATED 30 TRILLION LIRE OF DEBT IN MAY WE HAVE A COMPANY CLINIC HERE IN ITALY MEDIOBANCA SAYS MR MARENGO ALLUDING TO THE NATION'S LEADING INVESTMENT BANK ON WHOSE BOARD HE SITS I AM NOT PESSIMISTIC HE SAYS MEDIOBANCA HAS TAKEN THE SITUATION IN HAND BUT THIS TIME THE CONSTRAINTS ON GOVERNMENT SPENDING ARE SUCH THAT BAILOUTS BY THE TREASURY WHICH MIGHT HAVE HAPPENED IN THE PAST WOULD NOW CAUSE TURMOIL IN FINANCIAL MARKETS THROUGHOUT EUROPE THE IMPACT OF THE FERRUZZI PROBLEM ON ITALY'S FINANCIAL INSTITUTIONS IS ALSO CONSIDERABLE LAST MONTH VINCENZO DESARIO DEPUTY DIRECTORGENERAL OF ITALY'S CENTRAL BANK SAID THE 10 LARGEST ITALIAN BANKS HELD ABOUT 15 TRILLION LIRE OF FERRUZZI'S ESTIMATED 31 TRILLION LIRE OF DEBT THE LARGEST BANK CREDITOR ISTITUTO BANCARIO SAN PAOLO DI TORINO HAS LENT ABOUT 35 TRILLION LIRE EQUAL TO ABOUT HALF ITS CAPITAL BANKERS SAY AT LEAST UNTIL FERRUZZI'S RESTRUCTURING IS UNVEILED NOW FURTHER DELAYED UNTIL MIDSEPTEMBER INVESTORS WILL REMAIN LEERY OF SHARES IN ITALIAN BANKS WITH THE LARGEST LOANS TO FERRUZZI MORE THAN A HUNDRED FOREIGN BANKS MEANWHILE HAVE LENT 65 TRILLION LIRE TO THE GROUP WITH UNION BANK OF SWITZERLAND SOCIETE GENERALE OF FRANCE AND CITICORP AMONG THE MORE IMPORTANT FERRUZZI'S MANAGEMENT MET WITH REPRESENTATIVES OF FOREIGN CREDITOR BANKS YESTERDAY TO ILLUSTRATE TO THEM THAT FIRSTHALF GROUP RESULTS ARE IMPROVING INCLUDING AN ENCOURAGING 33 JUMP IN OPERATING PROFIT TO 139 TRILLION LIRE FROM 104 TRILLION LIRE ASKING THAT CREDITORS CONTINUE THEIR FINANCIAL SUPPORT THE COMPANY TOLD THE FOREIGN BANKERS ITS CONSOLIDATED REVENUE ROSE 19 TO 1149 TRILLION LIRE FROM 964 TRILLION LIRE A YEAR EARLIER AT THE END OF MAY THE COMPANY SAID ITS TOTAL DEBT AMOUNTED TO 2884 TRILLION LIRE DOWN FROM 3107 TRILLION LIRE ON DEC 31 1992 THE RECENT NEARCOLLAPSE OF EUROPE'S EXCHANGERATE SYSTEM ALSO HOLDS OUT THE PROSPECT OF LOWER INTEREST RATES HELPING THE ITALIAN GOVERNMENT TO MANAGE ITS BLOATED DEFICIT AND COMPANIES SUCH AS FERRUZZI AND MONTEDISON TO MANAGE THEIR HARDPRESSED FINANCIAL POSITION THE NEW MANAGEMENT CHAIRMAN GUIDO ROSSI A MILAN CORPORATE LAWYER AND ENRICO BONDI A SENIOR MANAGEMENT VETERAN OF FIAT SPA AND MONTEDISON ARE WORKING WITH MEDIOBANCA AND CREDITOR BANKS TO COME UP WITH A PLAN FOR FERRUZZI THE PLAN'S FOCUS WILL BE THE RESTRUCTURING OF THE FERRUZZI/MONTEDISON GROUP TO RECAPITALIZE IT AFTER ITS STAGGERING LOSSES OF THE PAST 18 MONTHS THAT IN TURN WILL BE ACHIEVED BY SELLING OFF MANY UNITS AND RAISING MORE CAPITAL FROM INVESTORS THE FERRUZZI FAMILY HEAVILY IMPLICATED IN THE SCANDAL SURROUNDING THE GROUP WILL AT THE VERY LEAST SEE THEIR HOLDINGS MASSIVELY DILUTED MAKING IT UNLIKELY THAT THEY WILL EVER HAVE AS MUCH CONTROL OVER THE GROUP AGAIN AND FERRUZZI AN OPAQUE HOLDING COMPANY THAT FOR YEARS RELEASED FEW MEANINGFUL FIGURES WILL BECOME A MUCH MORE TRANSPARENT AND PUBLIC VEHICLE IF THE COMPANY IS TO GET ITS BALANCE SHEET DOWN TO AN ACCEPTABLE DEBTTOEQUITY RATIO IT WOULD HAVE TO RAISE ABOUT 10 BILLION IT IS CURRENTLY BELIEVED TO HAVE ABOUT 29 TRILLION LIRE OF DEBT THE HEART OF THE FERRUZZI GROUP IS ITS HUGE FRENCHBASED AGRIBUSINESS ERIDANIA BEGHINSAY SA A MASSIVE COMPANY WITH BIG SALES VOLUMES BUT NOT VERY HIGH PROFITS AND A RELIABLE AND UNCYCLICAL BUSINESS FERRUZZI HAS SAID PUBLICLY THAT IT WON'T SELL BEGHINSAY BUT SOME ANALYSTS SUSPECT OTHERWISE HOW ELSE MANY REASON CAN FERRUZZI RAISE 10 BILLION ANALYSTS EXPECT FERRUZZI'S MANAGERS TO BREAK UP BEGHINSAY AND SELL IT PIECEMEAL MONTEDISON'S MAIN FOREIGN CHEMICAL INTEREST HIMONT INC OF DELAWARE IS ANOTHER SOUGHTAFTER PROPERTY THAT SOME INVESTMENT BANKERS EXPECT TO BE SOLD EDISON MONTEDISON'S ENERGY PRODUCING COMPANY IS ANOTHER LIKELY SALE PROSPECT THE GROUP'S CEMENT AND BUILDING MATERIALS COMPANY ALSO MAY BE ON THE BLOCK AS WELL AS ITS MAIN INSURANCE INTEREST FONDIARIA WHATEVER SURVIVES OF THE ORIGINAL FERRUZZI AND MONTEDISON HOLDING COMPANIES THE HUGE GROUP THAT THE ADVENTUROUS BUT RECKLESS MR GARDINI PUT TOGETHER IN THE 1980S WILL BE SEVERELY PRUNED 9308120029 930812 BUSINESS BRIEF UAL CORP ORLANDO FLA DEPARTURES TO BE REDUCED BY UNITED UAL CORP'S UNITED AIRLINES UNIT SAID IT WILL REDUCE DAILY DEPARTURES TO NINE US CITIES AND DROP SERVICES TO SEVEN OTHERS FROM ORLANDO FLA ON OCT 1 BECAUSE OF UNACCEPTABLE FINANCIAL RESULTS UNITED SAID ITS DAILY DEPARTURES FROM ORLANDO WILL FALL TO 16 FROM 39 CITIES TO BE DROPPED ARE BOSTON NEWARK NJ NEW YORK'S LAGUARDIA AIRPORT WASHINGTON AND JACKSONVILLE TAMPA AND SARASOTA FLA PASSENGERS BOOKED ON THOSE FLIGHTS AFTER OCT 1 WILL BE REBOOKED ONTO USAIR GROUP INC FLIGHTS UNITED SAID AS PART OF THE ARRANGEMENT UNITED SAID IT WILL ACQUIRE RIGHTS TO USAIR GATES AT CHICAGO'S O'HARE AIRPORT AND USAIR WILL ACQUIRE FIVE OF UNITED'S 12 GATES AT ORLANDO FURTHER DETAILS WEREN'T DISCLOSED SEPARATELY THE TWO CARRIERS WILL ENTER INTO A CODESHARE AGREEMENT AT MIAMI INTERNATIONAL AIRPORT THIS YEAR THE DEAL IS MEANT TO ATTRACT MORE TRAFFIC TO USAIR'S FLIGHTS TO MIAMI BY OFFERING CONVENIENT TRANSFERS TO UNITED'S LATIN AMERICAN FLIGHTS FROM MIAMI 9308120028 930812 WHAT'S NEWS WORLDWIDE CLINTON PUSHED FOR STIFFER GUNCONTROL LEGISLATION AND MORE POLICE OFFICERS THE PRESIDENT UNVEILED AN ANTICRIME PACKAGE THAT WOULD PUT 50000 MORE POLICE ON THE STREET A DOWN PAYMENT ON HIS CAMPAIGN PLEDGE TO ADD 100000 POLICE OFFICERS THE PACKAGE INCLUDES THE BRADY BILL WHICH WOULD IMPOSE A NATIONAL WAITING PERIOD FOR THE PURCHASE OF HANDGUNS IN THE MEANTIME THE PRESIDENT SIGNED AN ORDER SUSPENDING THE IMPORTATION OF ASSAULT WEAPONS HE ALSO ORDERED A REVIEW OF THE REGULATIONS CONCERNING GUN SALES THE FIRST DUTY OF ANY GOVERNMENT IS TO TRY TO KEEP ITS CITIZENS SAFE CLINTON SAID TOO MANY WEAPONS OF WAR ARE MAKING THEIR WAY ONTO THE STREETS THE US WARNED SERBS THEIR DEPLOYMENT NEAR SARAJEVO COULD TRIGGER BOMBING SECRETARY OF STATE CHRISTOPHER SAID THERE IS NO DEADLINE FOR MILITARY ACTION AGAINST BOSNIAN SERBS BUT THEIR SURRENDER OF TWO MOUNTAINS WOULD BE A CRITICAL FACTOR IN NATO DECISIONMAKING HE SAID THE ALLIES COULD ACT VERY QUICKLY IN GENEVA BOSNIA'S MUSLIM PRESIDENT THREATENED TO QUIT STALLED PEACE TALKS IN THE NEXT ONE OR TWO DAYS UNLESS SERBS LEFT ONE OF THE MOUNTAINS MOUNT IGMAN LATE YESTERDAY SERB FORCES WERE WITHDRAWING IN LARGE NUMBERS ALL ARRANGEMENTS INCLUDING POSITIONING OF AIR CONTROLLERS ARE IN PLACE ON THE GROUND FOR POSSIBLE NATO AIR STRIKES A UN SPOKESMAN SAID IN NEW YORK ARMY GEN SHALIKASHVILI WAS NAMED BY CLINTON TO BE CHAIRMAN OF THE JOINT CHIEFS OF STAFF SHALIKASHVILI 57 A POLISHBORN GRANDSON OF A CZARIST GENERAL WOULD SUCCEED GEN POWELL WHO IS RETIRING AS THE CURRENT SUPREME COMMANDER OF NATO SHALIKASHVILI HAS BEEN OVERSEEING PLANS FOR AIR STRIKES IN BOSNIA THE AGRICULTURE DEPARTMENT UNVEILED SAFEHANDLING LABELS THAT MUST APPEAR ON ALL RAW MEAT AND POULTRY PRODUCTS SOLD IN THE US STARTING IN MIDOCTOBER THE NEW LABELING POLICY MOTIVATED BY A FOODPOISONING OUTBREAK IN THE WEST THIS YEAR REQUIRES RECOMMENDATIONS ON COOKING REFRIGERATION AND THAWING CANCER RESEARCHERS SAID THEY MADE AN IMPORTANT ADVANCE IN TREATING CERTAIN BLOOD CANCERS WITH A SEARCHANDDESTROY TECHNIQUE THAT SENDS LETHAL DOSES OF RADIATION TO CANCER CELLS SCIENTISTS SAID THE APPROACH RESULTED IN A COMPLETE REMISSION OF TUMORS IN FOUR OF NINE PATIENTS WITH NONHODGKIN'S LYMPHOMA WOMEN WITH FEMALE DOCTORS WERE FOUND TO BE MUCH MORE LIKELY TO RECEIVE TWO IMPORTANT CANCER SCREENING TESTS PAP SMEARS AND MAMMOGRAMS THAN WOMEN WHOSE DOCTORS ARE MALE ACCORDING TO A STUDY THE STUDY SHOWED THAT YOUNG MALE PHYSICIANS WERE THE LEAST LIKELY TO PERFORM PAP SMEARS ASPIN REVERSED A MARINE CORPS DECISION TO STOP ACCEPTING MARRIED RECRUITS IN 1995 ACTING JUST HOURS AFTER THE POLICY WAS MADE PUBLIC A PENTAGON AIDE SAID THE DEFENSE SECRETARY DIDN'T NECESSARILY DISAGREE WITH THE POLICY BUT OBJECTED TO IT BEING DECREED WITHOUT GAINING APPROVAL FROM THE PENTAGON'S CIVILIAN LEADERS GUNMEN MOUNTED FIVE ATTACKS ON UN FORCES IN SOMALIA AND A UN SPOKESMAN IN MOGADISHU SAID A US HELICOPTER HAD SHOT AND KILLED SEVEN OF THE ARMED MEN MEANWHILE PRIVATE CHARITIES IN THE CAPITAL ACCUSED UN TROOPS OF HUMANRIGHTS ABUSES AND URGED THE MULTINATIONAL OPERATION NOT TO LOSE SIGHT OF ITS HUMANITARIAN GOALS ISRAEL'S ATTORNEY GENERAL RECOMMENDED WITH RELUCTANCE THAT JOHN DEMJANJUK BE FREED BUT HOLOCAUST SURVIVORS URGED ANOTHER NAZI WAR CRIMES TRIAL THE SUPREME COURT DELAYED UNTIL NEXT WEEK A FINAL DECISION ON DEMJANJUK'S FATE THE COURT EARLIER RULED THERE WAS INSUFFICIENT EVIDENCE HE WAS DEATH CAMP GUARD IVAN THE TERRIBLE HOMELESS FAMILIES ARE BEING FORCED TO SPLIT UP TO FIND EMERGENCY SHELTER ACCORDING TO A SURVEY OF 19 CITIES THE NATIONAL LAW CENTER ON HOMELESSNESS AND POVERTY SAID 41 OF SHELTER PROGRAMS REPORTED THAT FAMILIES ARE BREAKING UP BECAUSE OF OVERCROWDING AND AGE AND GENDER RESTRICTIONS YELTSIN AND HIS AIDES TOOK THE OFFENSIVE IN THEIR POWER STRUGGLE WITH RUSSIA'S LEGISLATURE AND ITS SPEAKER KHASBULATOV THE PRESIDENT'S TOP REFORMERS BLASTED THE SUPREME SOVIET FOR TRYING TO BLOCK PRIVATIZATION AND THEY ATTACKED KHASBULATOV AS MANIACAL