TAKE IT FROM JANN S WENNER THE HARDCHARGING PUBLISHER OF ROLLING STONE A GENERATION THAT ONCE RAISED HELL IS NOW RAISING KIDS THAT AT LEAST IS THE PITCH TO READERS AND ADVERTISERS ALIKE FROM MR WENNER'S NEWEST MAGAZINE FAMILY LIFE SOME 200000 COPIES OF THE SLICK BUT WHOLESOME PUBLICATION PACKED WITH AN IMPRESSIVE 76 PAGES OF ADVERTISING ARE SET TO HIT NEWSSTANDS TOMORROW WHICH IS FITTINGLY THE BIRTHDAY OF ONE OF MR WENNER'S THREE SONS FAMILY LIFE IS LADEN WITH AN OUTPOURING OF CHEERFUL FEATURE STORIES THAT OFTEN HIGHLIGHT A LITANY OF PRICEY MERCHANDISE IT SEEMINGLY OFFERS TONY ADVERTISERS A WAY TO MOVE BEYOND THEIR GLITZPITCH OF THE MATERIALISTIC 80S IN FAVOR OF A MORE HEARTHY MIDDLEBROW TOUCH SO INSTEAD OF CARRYING MOSTLY AN ARRAY OF ADS FOR DIAPERS AND BABY POWDER AND CRIBS AND SUCH THE FIRST ISSUE OF FAMILY LIFE HAS DRAWN ADVERTISING FROM THE LIKES OF NISSAN AND NIKE AND APPLE COMPUTERS AND TIMEX WATCHES BMW APPEARS HOPING TO TURN ITS IMAGE AS AN 80S YUPMOBILE INTO THAT OF A 90S FAMILY VEHICLE BMW IS INTERESTED IN EXPANDING ITS FRANCHISE SAYS GENE DEWITT PRESIDENT OF DEWITT MEDIA WHICH BUYS MEDIA SPACE FOR BMW THAT'S WHY WE CHOSE TO RUN AN AD FOR BMW'S STATION WAGON THE TWOPAGE AD FEATURES A PHOTO OF THREE YOUNGSTERS IN THE BACK SEAT OF A BMW WAGON THEY ARE BUSY BALANCING SPOONS ON THEIR NOSES RALPH LAUREN'S POLO BOYS LINE LIKEWISE USES AN AD FEATURING A FATHER HUGGING HIS SON BOTH OF THEM CLAD IN THE ONETIME SHIRTASSTATUS SYMBOL TWO PAGES LATER A MOTHER AND HER LITTLE GIRL EMBRACE IN AN AD FOR CALVIN KLEIN'S ETERNITY ONCE THE SUBJECT OF ARTSY BLACKANDWHITE COMMERCIALS INFAMOUS FOR THEIR HIGHFALUTIN POSE AND AN AD FOR EVIAN WHICH TYPICALLY ASSOCIATES ITSELF WITH SINEWY BODIES SHOWS A PREGNANT WOMAN LOUNGING AND THE HEADLINE MOMMY CAN I HAVE A GLASS OF WATER THE UPBEAT MAGAZINE GEARED TO FAMILIES WITH CHILDREN AGES THREE TO 12 IS A DEPARTURE FOR MR WENNER WHOSE CLOSELY HELD STRAIGHT ARROW PUBLISHERS INC PUBLISHES ROLLING STONE THE GOSSIPLADEN US AND THE 16MONTHOLD MEN'S JOURNAL WHICH TALKS UP PRICEY TRIPS AND EXPENSIVE GADGETS MR WENNER HAS NEVER TRIED TO REACH SUCH A MASS AUDIENCE BEFORE ALTHOUGH HE IS POSITIVE THE GENERATION THAT GREW UP READING ABOUT SEX DRUGS AND ROCK IN ROLLING STONE NOW NEEDS A MAGAZINE ON MORE GROWNUP PURSUITS THIS IS AN EMPTY AREA FOR MAGAZINES HE SAYS FAMILY LIFE HE SAYS IS THE ONLY ONE THAT TALKS ABOUT EDUCATION RECREATION HEALTH MONEY AND THE POLITICS OF HAVING A FAMILY NOT QUITE AND THEREIN LIES THE MAKINGS OF A FAMILY FEUD ANOTHER PUBLICATION WITH POCKETS AS DEEP AS IF NOT DEEPER THAN MR WENNER'S IS ALREADY ON THE NEWSSTAND FAMILYFUN PART OF WALT DISNEY CO'S WALT DISNEY PUBLISHING GROUP HAS BEEN ON THE SCENE SINCE 1991 BOTH TITLES PURSUE THE SAME AUDIENCE AND THE SAME ADVERTISERS THEY SHARE A FEW OF THE LATTER IVORY SOAP AND FIDELITY INVESTMENTS FOR INSTANCE BUT FAMILYFUN HAS SIGNED UP EASTMAN KODAK JOHNSON & JOHNSON AND TOYOTA FAMILY LIFE HASN'T FAMILYFUN'S ARTICLES COVER SUCH TOPICS AS BIRD WATCHING NATURE TRIPS AND THE ART OF GRILLING OUR MAGAZINE IS ABOUT WHAT TO DO WITH YOUR CHILDREN SAYS JAKE WINEBAUM FOUNDER AND PRESIDENT OF FAMILYFUN FAMILY LIFE IS ABOUT WHAT TO BUY YOUR CHILDREN THERE IS SO MUCH PRODUCT INFORMATION IN THEIR MAGAZINE IT'S OVERLOAD HE SAYS FAMILY LIFE IS AKIN TO A CATALOG AND MANY OF ITS ADVERTISERS INCLUDING FASHION DESIGNER DKNY AND THE MOVIES JOSH AND SAM AND THE SECRET GARDEN ARE MENTIONED IN THE EDITORIAL PAGES AS WELL IN CONTRAST HE SAYS OF THE 80 ADVERTISERS IN FAMILYFUN'S JULY/AUGUST ISSUE ONLY THREE ARE MENTIONED EDITORIALLY FAMILY LIFE INDEED DEVOTES GENEROUS SPACE TO VARIOUS GOODIES IN ITS NEWS COLUMNS THE FIRST ISSUE'S 180 PAGES CARRY SUCH ITEMS AS HOW TO HIRE AN ANIMAL TRAINER AT 225 A POP TO ENTERTAIN TYKES AT PARTIES 350 RIDING PANTS FOR MOM FROM RALPH LAUREN AND A 500 JOAN VASS SWEATER BUT IT ALSO SPOTLIGHTS EVERYDAY ITEMS INCLUDING CAMERAS FOR KIDS STARTING AT 7 AS WELL AS A 17 WORLD SOCCER SHIRT AND OTHER ARTICLES RUN THE GAMUT HELP FOR CHILDREN WHO HAVE TROUBLE MAKING FRIENDS 10 WEEKEND GETAWAYS AMISH COUNTRY IN PENNSYLVANIA AND THE LAZY H GUEST RANCH IN ALLENPARK COLO TO NAME TWO A SPOTLIGHT ON A CHICAGO PUBLIC SCHOOL PRAISED BY PRESIDENT CLINTON THE IDEA FOR THE MAGAZINE CAME FROM NANCY EVANS A FORMER PRESIDENT OF THE BOOKOFTHEMONTH CLUB AND FORMER PRESIDENT AND PUBLISHER OF DOUBLEDAY MS EVANS MET MR WENNER AT A PARTY AND CASUALLY MENTIONED THE CONCEPT NOT LONG AFTER MR WENNER CAME CALLING MS EVANS WAS NAMED EDITOR IN CHIEF OF THE NEW MAGAZINE MS EVANS DISMISSES CRITICISM THAT THE MAGAZINE WILL GO EASY ON ITS TONY ADVERTISERS WE'LL NAME NAMES SHE SAYS OTHERWISE WHAT'S THE POINT MS EVANS IS MARRIED AND HAS A FIVEYEAROLD DAUGHTER WHO SHE SAYS SUPPLIES HER WITH ENDLESS IDEAS FOR ARTICLES SHE WISHES THE PUBLICATION WAS MONTHLY BUT FIRST WE HAVE TO LEARN TO CRAWL SHE SAYS JULIE MCGOWEN A FORMER CONDE NAST EXECUTIVE WHO IS FAMILY LIFE'S PUBLISHER DISMISSES THE UNFRIENDLY CRITICISM FROM THE FOLKS AT FAMILYFUN SHE CITES THE PROFILE OF TIPPER GORE WIFE OF VICE PRESIDENT AL GORE AN ARTICLE ON DINOSAURS AND AN ESSAY BY PULITZER PRIZE WRITER ROBERT COLES ON THE IMPORTANCE OF SPENDING TIME WITH YOUR CHILDREN FAMILYFUN HAS A STRONG LEAD OVER THE NEWCOMER MR WINEBAUM SAYS FAMILYFUN'S RATE BASE WILL INCREASE TO 600000 COPIES IN FEBRUARY FROM 400000 CURRENTLY IT WILL START PUBLISHING MONTHLY BEGINNING IN NOVEMBER AND WILL RAISE ITS COVER PRICE BY 1 TO 295 FAMILY LIFE WILL SELL FOR 250 START OUT AT 200000 COPIES AND WILL GO BIMONTHLY NEXT YEAR MR WENNER SAYS HIS NEW MAGAZINE WON'T BREAK EVEN FOR TWO TO THREE YEARS LAUNCHING FAMILY LIFE AND MEN'S JOURNAL REQUIRED TOTAL CAPITAL OF 7 MILLION TO 10 MILLION ALL OF WHICH WAS FUNDED FROM STRAIGHT ARROW PROFITS THAT MEANS I HAVE A NEW MAGAZINE THIS YEAR INSTEAD OF A NEW BOAT HE SAYS DISCOUNTERS MAY TAKE BIG BITES OUT OF THEM AT THE CASH REGISTER BUT MARLBORO CIGARETTES AND COCACOLA ARE STILL ABOUT TWICE AS VALUABLE AS ANY OTHER BRAND NAME IN THE WORLD FINANCIAL WORLD MAGAZINE FINDS IN ITS ANNUAL BRAND SURVEY PHILIP MORRIS'S MARLBORO REMAINS THE MOST VALUABLE BRAND IN THE WORLD THE SURVEY FOUND WITH AN ESTIMATED CURRENT VALUE OF 3947 BILLION COCACOLA COMES IN NEXT AT 3345 BILLION THE SURVEY RANKS BRANDS ACCORDING TO SALES PROFITABILITY AND GROWTH POTENTIAL INTEL AS IN MICROCHIPS RANKED THIRD WITH ESTIMATED VALUE OF 1781 BILLION ITS ESTIMATED VALUE GREW 107 LAST YEAR MORE THAN ANY OTHER BRAND THE SURVEY SAYS KELLOGG'S CEREALS CAME IN FOURTH WITH AN ESTIMATED VALUE OF 968 BILLION THEN NESTLE'S NESCAFE COFFEE AT 917 BILLION ANHEUSERBUSCH'S BUDWEISER BEER AT 824 BILLION PEPSICO'S PEPSICOLA AT 75 BILLION GILLETTE RAZORS AT 715 BILLION PROCTER & GAMBLE'S PAMPERS DIAPERS AT 592 BILLION AND BACARDI RUM AT 549 BILLION PRUDENTIAL SECURITIES A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA ENDED A THREEMONTH REVIEW BY HIRING DEUTSCH/DWORIN NEW YORK FOR ITS 20 MILLION ACCOUNT THE INCUMBENT INTERPUBLIC GROUP'S LOWE & PARTNERS AND OMNICOM GROUP'S DDB NEEDHAM WERE BESTED IN THE REVIEW PRUDENTIAL'S BIG INSURANCE ACCOUNT WHICH BILLED ABOUT 50 MILLION LAST YEAR REMAINS AT LOWE & PARTNERS STEVE DWORIN AGENCY PRESIDENT SAID DEUTSCH WOULD DROP OUT OF INTERNATIONAL BUSINESS MACHINE'S BIG PERSONALCOMPUTER PITCH WHILE IT HIRES NEW EMPLOYEES AND GETS ACQUAINTED WITH THE NEW ACCOUNT DEUTSCH IS THE SECOND AGENCY TO DECLINE TO PITCH THE BUSINESS LEAVING 11 SHOPS IN THE RUNNING TYCO TYCO TOYS OF MOUNT LAUREL NJ TAPPED D'ARCY MASIUS BENTON & BOWLES NEW YORK INDUSTRY EXECUTIVES SAID TO HANDLE ADVERTISING FOR SEVERAL NEW TOYS A NEW ACCOUNT WITH ESTIMATED BILLINGS OF ABOUT 15 MILLION THE ASSIGNMENT ADDS A SECOND AGENCY ON THE TYCO BUSINESS WITH TOTAL BILLINGS OF ABOUT 53 MILLION DUPONT DUPONT TAPPED OMNICOM GROUP'S BBDO NEW YORK TO CREATE ADS FOR ITS CORIAN SURFACING MATERIAL THE ACCOUNT WITH BILLINGS OF 15 MILLION WAS PREVIOUSLY AT AYER NEW YORK 9308090163 930809 CLOSED END FUNDS UNAUDITED NET ASSET VALUES NAV OF CLOSED END FUNDS REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN MMIDWEST SINGLE STATE MUNI BOND WEDNESDAY'S CLOSE EASSUMES RIGHTS OFFERING FULLY SUBSCRIBED VCONVERTED AT COMMERCIAL RAND RATE YIN CANADIAN DOLLARS ZNOT TRADING ON ANY EXCHANGE N/ANOT AVAILABLE OR NOT APPLICABLE 9308090162 930809 WHO'S NEWS MONARCH MACHINE TOOL CO MONARCH MACHINE TOOL CO SIDNEY OHIO KENNETH H HOPKINS 65 YEARS OLD WAS NAMED TO THE BOARD OF THIS MACHINE TOOL CONCERN INCREASING THE SIZE OF THE BOARD TO 10 FROM NINE MR HOPKINS IS CHAIRMAN AND A DIRECTOR OF FIELD ABRASIVES INC DAYTON OHIO 9308090161 930809 WHO'S NEWS DIONEX CORP DIONEX CORP SUNNYVALE CALIF BARBARA J POSCH WAS NAMED VICE PRESIDENT OF FINANCE AND CHIEF FINANCIAL OFFICER OF THIS MAKER OF CHROMATOGRAPHY SYSTEMS MS POSCH WHO WAS DIONEX'S CONTROLLER SUCCEEDS ERIC KELLER WHO LEFT THE COMPANY 9308090160 930809 FUND GROUP AND BANKS SPAR OVER SEC PLAN FIRMS SAY BANKS WRONGLY ATTACKED THE PROPOSAL LOOSENING SALES RULES BY GENE COLTER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE MUTUAL FUND INDUSTRY'S LARGEST TRADE GROUP SAYS BANKS HAVE WRONGLY ATTACKED A PROPOSAL TO LOOSEN GREATLY FEDERAL RULES FOR MARKETING OF FUNDS THE PROPOSAL BY THE SECURITIES AND EXCHANGE COMMISSION WOULD SIMPLIFY MARKETING AND INVESTMENT IN MUTUAL FUNDS UNDER CURRENT RULES FIRMS MARKETING MUTUAL FUNDS ARE REQUIRED TO SEND POTENTIAL FUND BUYERS A FULL PROSPECTUS BEFORE MAKING SALES THAT WOULDN'T BE NECESSARY UNDER THE SEC PROPOSAL INSTEAD FIRMS WOULD BE PERMITTED TO MARKET FUNDS THROUGH PRINT ADVERTISEMENTS THAT INCLUDE A SOCALLED SUMMARY PROSPECTUS A STREAMLINED VERSION OF THE USUAL PROSPECTUS INVESTORS COULD BUY A FUND ON THE SPOT FOR EXAMPLE BY MAILING IN A COUPON APPEARING WITH THE SUMMARY PROSPECTUS OFFICIALS AT THE INVESTMENT COMPANY INSTITUTE THE MUTUALFUND TRADE GROUP SAY MAJOR BANK ASSOCIATIONS HAVE PORTRAYED WRONGLY THE PROPOSAL AS GIVING MUTUAL FUND COMPANIES AN UNFAIR COMPETITIVE EDGE OVER BANKS USING SUMMARY PROSPECTUSES WOULD REDUCE THE COST OF MARKETING MUTUAL FUNDS OFFICIALS SAY AND WOULD OFFER INVESTORS INFORMATION IN SIMPLE LANGUAGE RATHER THAN THE TECHNICAL JARGON NOW OFTEN CONTAINED IN PROSPECTUSES BANK GROUPS REPLY THAT SUMMARY PROSPECTUSES DON'T PROVIDE ADEQUATE INVESTOR PROTECTION THE DISAGREEMENT ILLUSTRATES THE INTENSIFYING COMPETITION FOR THE ATTENTION OF INVESTORS IN THE RAPIDLY EXPANDING 18 TRILLION MUTUAL FUND INDUSTRY IN A LETTER TO THE SEC INVESTMENT COMPANY INSTITUTE VICE PRESIDENT CRAIG TYLE CHALLENGED THE AMERICAN BANKERS ASSOCIATION'S ARGUMENT THAT SUMMARY PROSPECTUSES WOULDN'T PROVIDE FULL AND ACCURATE DISCLOSURE HE TERMED THE BANKERS ASSOCIATION'S POSITION AS FUNDAMENTALLY FLAWED MR TYLE ALSO SAID THE INDEPENDENT BANKERS ASSOCIATION OF AMERICA HAS MISCHARACTERIZED THE INTENT AND EFFECT OF THE SUMMARYPROSPECTUS PROPOSAL THE AMERICAN BANKERS ASSOCIATION AND OTHER GROUPS WERE INVITED BY THE SEC TO SUBMIT COMMENTS REGARDING THE SUMMARYPROSPECTUS PROPOSAL THE LETTER SENT TO THE SEC BY MR TYLE ARGUES THAT THERE ARE THREE FLAWS IN THE AMERICAN BANKERS ASSOCIATION'S ANALYSIS OF THE PROPOSAL TO ALLOW SUMMARY PROSPECTUSES INVESTORS USING SUMMARY PROSPECTUSES WOULD CONTINUE TO RECEIVE FULL DISCLOSURE ABOUT THEIR FUNDS AS WELL AS SUBSTANTIAL ADDITIONAL PROTECTIONS THAT STILL WOULD BE UNAVAILABLE TO PURCHASERS OF BANK PRODUCTS MR TYLE WROTE BANK GROUPS FAIL TO NOTE THAT BANKS HAD REFUSED TO PROVIDE THEIR CUSTOMERS WITH FULL DISCLOSURE ABOUT FEES AND RESTRICTIONS ON THEIR ACCOUNTS UNTIL CONGRESS INTERVENED WITH ENACTMENT OF THE TRUTH IN SAVINGS ACT MR TYLE CONTENDED THE ANALYSIS IGNORES THE FACT THAT INVESTOR PROTECTION PROVISIONS UNDER THE TRUTH IN SAVINGS ACT ARE LESS STRINGENT THAN THOSE UNDER THE SUMMARY PROSPECTUS PROPOSAL MR TYLE ADDED IN A LETTER TO THE SEC IN JUNE INDEPENDENT BANKERS ASSOCIATION PRESIDENT JAMES LAUFFER WROTE IT IS LUDICROUS THAT A CONSUMER WOULD BE ENTITLED TO FULL AND COMPLETE DISCLOSURE PRIOR TO OPENING A NORISK SAVINGS ACCOUNT BUT NOT PRIOR TO INVESTING IN A MUCH HIGHER RISK MUTUAL FUND OTHER BANKING INDUSTRY OFFICIALS SAY THEY STILL MUST BE CONVINCED THAT INVESTORS WOULD BE PROTECTED FROM RISKY INVESTMENTS IN THE SAME WAY BANK INVESTORS ARE PROTECTED BY THE TRUTH IN SAVINGS ACT WHICH TOOK EFFECT IN JUNE OUR MAIN CONCERN IS THAT THE INVESTOR CAN MAKE INVESTMENTS WITHOUT SEEING THE FULL PROSPECTUS SAID KAREN THOMAS REGULATORY COUNSEL FOR THE INDEPENDENT BANKERS ASSOCIATION IN AN INTERVIEW WE THINK THE SEC PROPOSAL SORT OF TURNS TRUTH IN SAVINGS ON ITS HEAD BUT THE TRUTH IN SAVINGS ACT ONLY REGULATES BANKINSURED DEPOSITS IT STIPULATES THAT BANKS DISCLOSE INTEREST RATES ON DEPOSITS AND ANY CUSTOMER FEES IN A STANDARDIZED FASHION THE ACT DOESN'T SAY ANYTHING ABOUT THE WAY BANKS MUST INFORM PROSPECTIVE INVESTORS ABOUT THE RISKS OF MUTUAL FUNDS THAT IS COVERED UNDER OTHER SECURITIES LAWS THAT ALSO REGULATE OFFERINGS FROM MUTUALFUND FIRMS WHAT'S BOTHERING BANKERS MOST IS THAT MUTUALFUND FIRMS SEEM TO GAIN EASIER ACCESS TO PROSPECTIVE CUSTOMERS EVEN AS BANKS COME UNDER MORE REGULATION FOR THEIR FUND OFFERINGS SAID CHRIS RIECK SPOKESMAN FOR THE AMERICAN BANKERS ASSOCIATION MR TYLE SAID IN AN INTERVIEW THAT USE OF SUMMARY PROSPECTUSES BY MUTUALFUND FIRMS WOULDN'T ALLOW FIRMS TO BYPASS THE KIND OF TOUGH SCRUTINY BANKS SAY THEY MUST ENDURE SUMMARY PROSPECTUSES WOULD HAVE TO BE FILED WITH AND REVIEWED BY THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AND/OR THE SECURITIES AND EXCHANGE COMMISSION MR TYLE SAID IF YOU COMPARE DISCLOSURE UNDER TRUTH IN SAVINGS AND THE SUMMARY PROSPECTUS PROPOSAL THEY'RE VERY COMPARABLE THE CURRENT PROPOSAL WOULD ALSO STIPULATE THAT EACH SUMMARY PROSPECTUS WOULD HAVE TO FEATURE A CLEARLY VISIBLE BOX THAT INVESTORS CAN CHECK IN ORDER TO REQUEST A FULL PROSPECTUS MR TYLE ADDED RATHER THAN ALLOW MUTUAL FUND FIRMS TO FIGURE WAYS TO REDUCE THE STEPS IN WHICH INVESTORS GO ABOUT BUYING A FUND THE SEC SHOULD WORK ON SIMPLIFYING THE CURRENT PROCEDURE THE INDEPENDENT BANKERS ASSOCIATION'S MS THOMAS SAID THE SEC SHOULD SPEND MORE TIME MAKING THE FULL PROSPECTUS MORE READERFRIENDLY MS THOMAS SAID MR TYLE SAID THAT THE INVESTMENT COMPANY INSTITUTE FULLY SUPPORTS STEPS TO MAKE THE FULL PROSPECTUS MORE READABLE BUT THAT DOES NOT REDUCE THE USEFULNESS OF SUMMARY PROSPECTUSES THE FULL PROSPECTUS IS MORE LIKE A MANUAL FOR THE INVESTOR THAN WHAT HE NEEDS TO KNOW TO BUY A FUND MR TYLE SAID A FUND CUSTOMER NEEDS TO KNOW ABOUT SUCH OPERATIONS AS HOW TO MAKE A WIRE TRANSFER TO A HIS FUND OR THE VARIOUS WAYS TO MAKE REDEMPTIONS BUT NOT NECESSARILY BEFORE HE BUYS THE FUND MR TYLE CONCLUDED 9308090159 930809 IRS SPELLS OUT ITS POSITION IN TAX CASE ON 175 MILLION MUNICIPAL BOND ISSUE BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE INTERNAL REVENUE SERVICE OUTLINING ITS POSITION IN THE FIRST MUNICIPAL BONDHOLDER TAX CASE TO REACH THE US TAX COURT SPELLED OUT WHY IT BELIEVES A 175 MILLION MUNICIPAL BOND ISSUE SHOULD BE TAXABLE NEARLY EIGHT YEARS AGO THE BONDS WERE SOLD TO INVESTORS AS TAXEXEMPT SECURITIES BUT THE IRS SAID MULTIPLE TAX VIOLATIONS NOW HAVE RENDERED THEM TAXABLE THE TAX COURT HAS SCHEDULED AN OCTOBER TRIAL ON WHAT AN IRS OFFICIAL CALLED THE FIRST TAXPAYER SUIT DEALING WITH THE DISQUALIFICATION OF A TAXEXEMPT BOND HARBOR BANCORP OF LONG BEACH CALIF IS THE BONDHOLDER WE BOUGHT THE BONDS IN GOOD FAITH AND DON'T WANT TO BE PENALIZED FOR WHAT SOMEONE ELSE DID SAID JAMES GRAY PRESIDENT OF THE BANK HOLDING COMPANY HE SAID THERE IS STRONG SENTIMENT AMONG OTHER BONDHOLDERS AND MARKET PARTICIPANTS THAT THE BANK NOT DO A LAYDOWN AND PAY THE IRS THE CASE IS IMPORTANT TO THE IRS IT GIVES THE AGENCY A CHANCE TO SHOW THE BOND COMMUNITY AND THOSE WHO ACCUSE THEM OF LAX ENFORCEMENT THAT ABUSIVE MUNICIPAL BOND DEALS AREN'T IGNORED THE AGENCY ALSO VIEWS IT AS PRECEDENTSETTING CASE FOR MORE THAN 1 BILLION OF ALLEGEDLY BOGUS BONDS AND NECESSARY FOR EXERTING PRESSURE ON ISSUERS OF SUCH BONDS TO SETTLE THEIR CASES RATHER THAN HAVE THEIR BONDHOLDERS TAXED THE HOUSING AUTHORITY OF THE COUNTY OF RIVERSIDE CALIF ISSUED THE BONDS AT THE END OF 1985 THEY WERE UNDERWRITTEN BY MATTHEWS & WRIGHT GROUP INC WHICH TURNED IN ITS BROKERDEALER LICENSE IN 1989 IN SETTLING SECURITIES AND EXCHANGE COMMISSION CHARGES THAT IT UNDERWROTE A BUNCH OF MUNICIPAL BONDS IN PHONY CLOSINGS BEFORE TAX REFORM DEADLINES THE SEC ALLEGED THAT THE FIRM WHICH LATER CHANGED ITS NAME TO HELMSTAR GROUP INC FAILED TO DISCLOSE THE BONDS COULD BE TAXED IN 1991 THE IRS DECLARED THE RIVERSIDE MUNICIPAL BONDS TAXABLE THE AGENCY WHICH TRADITIONALLY HAS LEFT BONDHOLDERS ALONE AND INSTEAD TRIED TO WORK OUT SETTLEMENTS WITH ISSUERS TOLD THE HOUSING AUTHORITY AT THAT TIME THAT INVESTORS WOULDN'T BE TAXED IF IT FORKED OVER SOME 225 MILLION THE HOUSING AUTHORITY RESPONDED BY FILING SUIT TO BLOCK ENFORCEMENT ACTION BUT THE IRS PREVAILED AND SENT TAX DEFICIENCY NOTICES TO A BATCH OF BONDHOLDERS SEVERAL OF WHOM HAVE CHALLENGED THE AGENCY'S ASSESSMENTS IN THE TAX COURT THE FIRST CHALLENGE SCHEDULED FOR TAX COURT REVIEW WAS FILED BY HARBOR BANCORP WHICH BALKED WHEN ASSESSED SOME 20000 IN BACK TAXES ON ITS HOLDINGS OF RIVERSIDE BONDS THE BANK PETITIONED THE TAX COURT TO OVERTURN THE ASSESSMENT THE IRS IN A NEW TAX COURT FILING IDENTIFIED THE RIVERSIDE BONDS AS BEING ARBITRAGE BONDS INTENDED TO GENERATE INVESTMENT PROFITS AND THAT WERE SOLD IN A SHAM CLOSING USING AN UNLICENSED OFFSHORE BANK AND A PHONY CHECK AS WELL AS AS BEING IMPROPERLY AUTHORIZED THE IRS ALSO SAID THE ISSUER DIDN'T LOOK INTO THE FEASIBILITY OF THE HOUSING OSTENSIBLY BEING FINANCED WITH THE BONDS AND THAT A NOARBITRAGE CERTIFICATE EXECUTED BY THE ISSUER BEFORE THE BOND SALE WASN'T COMPLETED UNTIL MONTHS LATER WILLIAM ROSENBERGER EXECUTIVE DIRECTOR OF THE RIVERSIDE AGENCY COULDN'T BE REACHED TO COMMENT DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND DREXEL BURNHAM LAMBERT INC WERE THE INITIAL JOINT UNDERWRITERS OF THE RIVERSIDE BONDS ACCORDING TO THE IRS BUT THEY ASSIGNED THEIR POSITION TO MATTHEWS AND WRIGHT THE IRS SAID THE RIVERSIDE AGENCY WAS UNAWARE OF THE CHANGE AT THE TIME MR GRAY THE HEAD OF HARBOR BANCORP SAID THAT THE BANK'S GENERAL COUNSEL DIED RECENTLY AND THAT THE BANK IS IN THE PROCESS OF SELECTING OUTSIDE COUNSEL TO PRESENT ITS CASE TO THE TAX COURT WE'RE TALKING ABOUT SOME PRETTY BASIC ISSUES HE SAID I DON'T MIND BEING A STALKINGHORSE 9308090158 930809 WHO'S NEWS TEMPLEINLAND INC TEMPLEINLAND INC DIBOLL TEXAS HERBERT A SKLENAR 62 YEARS OLD WAS NAMED A DIRECTOR OF THIS PAPER AND FINANCIAL SERVICES CONCERN THE ELECTION OF MR SKLENAR CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF VULCAN MATERIALS CO BIRMINGHAM ALA INCREASES THE SIZE OF THE TEMPLEINLAND BOARD TO 10 9308090157 930809 WHO'S NEWS U S WEST INC U S WEST INC ENGLEWOOD COLO FRANK POPOFF 57 YEARS OLD CHAIRMAN OF DOW CHEMICAL CO WAS NAMED A DIRECTOR OF THE TELECOMMUNICATIONS COMPANY EXPANDING THE BOARD'S SIZE TO 14 MEMBERS 9308090156 930809 INTERNATIONAL RUBLE EDGES UP AGAINST DOLLAR MOSCOW THE RUBLE EDGED UP AGAINST THE DOLLAR FRIDAY CLOSING AT 985 ON THE MOSCOW INTERBANK CURRENCY EXCHANGE VOLUME TRADED WAS 385 MILLION WITH INITIAL SUPPLY AT 385 MILLION AND INITIAL DEMAND AT 376 MILLION FIFTYFIVE BANKS PARTICIPATED 9308090155 930809 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN RUSSIA'S CABINET APPROVED A THREEYEAR PLAN FOR AN ECONOMIC OVERHAUL THAT STATES GOALS RATHER THAN SPECIFIC STEPS TO CREATE A SOCIALLY ORIENTED MARKET ECONOMY THE BLUEPRINT BY THE CABINET AND REGIONAL ECONOMIC LEADERS REPRESENTS A COMPROMISE TECHNOCRATS LED BY PRIME MINISTER VIKTOR CHERNOMYRDIN HAVE ADVOCATED SOFTENING HARSH EFFECTS OF REFORMS BY EXPANDING SOCIAL WELFARE PROGRAMS AND RETAINING PARTS OF THE VAST STATE SECTOR THE PLAN AIMS TO HOLD MONTHLY INFLATION NOW RUNNING AT 20 TO BETWEEN 5 AND 7 NEXT YEAR IT CALLS FOR REDUCING THE BUDGET DEFICIT AND ACHIEVING FINANCIAL STABILITY IN 1994 MEANWHILE THE SUPREME SOVIET STEPPED UP ITS CONFRONTATION WITH PRESIDENT YELTSIN BLAMING HIM FOR THE RECENT PANIC OVER PULLING OLD BANKNOTES OUT OF CIRCULATION THE LEGISLATURE ALSO SUSPENDED AND SENT FOR COURT REVIEW MR YELTSIN'S MIDJULY DECREE THAT INVALIDATED THE LAWMAKERS' EARLIER SUSPENSION OF PRIVATIZATION EFFORTS BUT MEMBERS OF YELTSIN'S CABINET SAID THE TRANSFER OF STATE INDUSTRY INTO PRIVATE HANDS WOULD CONTINUE IN THE BIGGEST STEP IN ITS PRIVATIZATION PROGRAM GREECE SUBMITTED LEGISLATION TO SELL STOCK IN THE HELLENIC TELECOMMUNICATIONS ORGANIZATION UNDER A COMPROMISE TO HEAD OFF EMPLOYEE AND POLITICAL OPPOSITION THE GOVERNMENT WILL RETAIN 51 OF THE SHARES AND APPOINT THE PRESIDENT AND SEVEN DIRECTORS A 35 STAKE IS TO BE SOLD TO A STRATEGIC INVESTOR SUCH AS A FOREIGN TELECOMMUNICATIONS COMPANY FOR AN ESTIMATED 12 BILLION WHICH WILL APPOINT FOUR BOARD MEMBERS AND THE TOP MANAGEMENT EXECUTIVE MODERNIZATION OF THE ENTERPRISE COULD COST 832 BILLION OVER 10 YEARS A ROMANIAN COURT INVALIDATED THE SALE OF THE MAIN STATE SHIPPING COMPANY APPARENTLY KILLING A PRIVATIZATION BREAKTHROUGH THE CONSTANTA DISTRICT COURT OVERTURNED ITS PREVIOUS DECISION ALLOWING THE SALE OF 51 OF PETROMIN TO FORUM MARITIME OF GREECE FOR 335 MILLION THE SELLOFF DEAL ONE OF THE BIGGEST IN EASTERN EUROPE DREW OPPOSITION FROM THE ROMANIAN GOVERNMENT AND NATIONALIST POLITICIANS WHO SAID THAT THE STATE SHOULD KEEP PETROMIN'S FLEET AS A STRATEGIC ASSET AND THAT THE 90 SHIPS WERE UNDERVALUED ROMANIAN MEDIA ALLEGED THE DEAL WAS RIFE WITH CORRUPTION AFTER A SERIES OF LATENIGHT HOLDUPS BY HIGHWAYMEN ON ROUTES LEADING TO THE FRENCH RIVERIA POLICE WARNED MOTORISTS WITH FOREIGN LICENSE PLATES TO AVOID TRAVEL SOUTH OF LYON DURING HOURS WHEN THE ROADS ARE LARGELY DESERTED AT LEAST 10 ROBBERIES HAVE OCCURRED SINCE MIDJULY WHEN THE EUROPEAN VACATION SEASON CRANKED INTO HIGH GEAR VICTIMS REPORTED THAT THEIR CARS WERE REARENDED BY OTHER VEHICLES ONCE THEY PULLED OVER MASKED GUNMEN ROBBED THEM AND FLED OR STOLE THEIR CARS A NATIONWIDE TRUCK STRIKE IN INDIA ENDED AFTER SIX DAYS WHEN THE GOVERNMENT AGREED TO ABOLISH ROAD TOLLS THE ACTION CRIPPLED INDUSTRIES AND CAUSED FRUIT AND VEGETABLE PRICES TO SOAR WHEN SHORTAGES RESULTED THE ALL INDIA MOTOR TRANSPORT CONGRESS THE UNION THAT CONTROLS THE 18 MILLION TRUCKS IN THE COUNTRY HAD SOUGHT AN END TO THE TOLLS AND TO SOME STATES' TAXES ON SHIPMENTS WHICH WILL BE REVIEWED TRUCKS CARRY 90 OF INDIA'S FREIGHT THE PHILIPPINES AND TAIWAN WHICH ARE MAJOR TRADING PARTNERS AGREED ON JOINT DEVELOPMENT OF AN INDUSTRIAL ZONE AT THE FORMER US NAVY BASE AT SUBIC BAY TAIWAN WILL LEND 60 MILLION TO FINANCE CONSTRUCTION OF INFRASTRUCTURE IN THE 740ACRE ZONE WHERE ABOUT 30 TAIWAN COMPANIES HAVE INDICATED INTEREST IN INVESTING THE SPECIAL ZONE BEING CREATED BY THE SUBIC BAY METROPOLITAN AUTHORITY OFFERS TAX AND OTHER INCENTIVES TO ATTRACT FOREIGN BUSINESSES TO SET UP OPERATIONS THERE UNEMPLOYMENT INCREASED SHARPLY LAST MONTH IN GERMANY UNDERSCORING ITS RECESSIONARY WOES PRIVATE ECONOMISTS PREDICTED THE JOBLESS RANKS WILL CONTINUE TO SWELL THROUGH THE FALL OF 1994 IN WESTERN GERMANY THE NUMBER OF UNEMPLOYED ROSE A SEASONALLY ADJUSTED 41000 FAR MORE THAN THE 29200 EXPECTED AND THE UNEMPLOYMENT RATE SURGED TO 75 FROM 7 IN JUNE IN EASTERN GERMANY THE JOBLESS RATE SHOT UP TO 153 THE HIGHEST SINCE MARCH FROM 144 IN JUNE THE STEEP CLIMBS EXCEEDED SEASONAL FACTORS SUCH AS NEW GRADUATES IN THE LABOR POOL AND TEMPORARY FACTORY CLOSINGS UNEMPLOYMENT IS A LAGGING ECONOMIC INDICATOR ESPECIALLY IN GERMANY WHERE COMPANIES DON'T JETTISON WORKERS AS QUICKLY AS ELSEWHERE THEY FIRST TEND TO PLACE EMPLOYEES ON SHORTENED SHIFTS THE NUMBER OF WESTERN GERMANS ON SHORT SHIFTS PLUNGED 41 TO 525082 FROM JUNE BUT ANALYSTS SAID THIS DIDN'T HERALD AN UNEMPLOYMENT DROP SHORT SHIFTS SOARED EARLY THIS YEAR AS MANUFACTURING ORDERS AND OUTPUT SANK BUT THE DURATION OF THIS REMEDY IS LIMITED AND MORE SHORTSHIFT WORKERS WERE BEING LAID OFF SOUTH KOREA OPENED THE TAEJON EXPOSITION SOUTH OF SEOUL WITH 112 COUNTRIES PARTICIPATING UNDER AN INFORMATION TECHNOLOGY THEME THE 93DAY EXHIBITION IS EXPECTED TO ATTRACT A TOTAL OF 10 MILLION VISITORS AND GENERATE REVENUE OF 750000 A DAY ITALY'S CABINET ABOLISHED A WEEKOLD REGULATION THAT WOULD HAVE MADE THE DEAD RESPONSIBLE FOR THE 50 ANNUAL HEALTHCARE TAX IN THE YEAR OF THEIR DEATH 9308090154 930809 LETTERS TO THE EDITOR NO COMPANY CAN AFFORD TO OSSIFY YOUR JULY 6 PAGE ONE ARTICLE THE BEST LAID PLANS ON CORPORATE REENGINEERING STATED SOMETIMES IT MAY BE BETTER FOR A COMPANY TO JUST STEP BACK AND DO NOTHING EVERY SYSTEM PROCESS OR CHANGE OF ANY KIND THAT IS IMPLEMENTED TAKES CAREFUL PLANNING CONSENSUS COMMITMENT AND DEDICATION ALL OF US IN CORPORATE AMERICA HAVE BEEN THROUGH THESE CHALLENGES MANY TIMES IN THE LAST DECADE HOWEVER THE BENEFITS OF THE INVESTMENT BY THE COMPANY TO CHANGE MAKE A CLEAR STATEMENT TO THE EMPLOYEES THAT WE MUST CONTINUALLY WORK TO IMPROVE THE VALUE WE PROVIDE OUR CLIENTS SOMETIMES THE IMPLEMENTATION DOESN'T WORK BUT IN MY OPINION THE OVERALL RESULT IS MUCH MORE BENEFICIAL THAN DOING NOTHING WHEN SOMEONE TAKES THE MEDICINE OFFERED BY A DOCTOR MIXES IT WITH ALPHABET SOUP AND THEN RUBS IT ON ANOTHER PERSON THE DOCTOR SHOULD NOT HAVE TO SHARE BLAME FOR LACK OF IMPROVEMENT IN THE PATIENT THE TRUE EXECUTIVES I HAVE KNOWN IN BUSINESS LISTEN TO THE IDEAS OF THOUGHT LEADERS AND WORK HARD AT UNDERSTANDING THE OFFERED CONCEPTS THEY ACCEPT OR REJECT THE CONCEPTS BASED ON WHAT IS VITAL FOR THEIR OBJECTIVES THEN THEY DIRECT THEIR ORGANIZATION IN IMPLEMENTING WHAT THEY KNOW TO BE USEFUL TO THEIR INTENT THEY DO NOT JUST BUY COPIES OF EACH NEW BOOK AND PASS IT OUT TO THEIR SUBORDINATES WAIT IMPATIENTLY FOR RESULTS TO HAPPEN AND THEN COMPLAIN WHEN NOTHING EMERGES CHANGING ESTABLISHED CORPORATE CULTURES IS AS HARD FOR MBAS AS IT IS FOR CLERKS AND THE TEMPTATION TO SEE CHANGES AS A FAD CAN BE GREAT SINCE CHANGE ITSELF IS GENERALLY PAINFUL BUT THE OLD APPROACHES NO LONGER WORK AND COMPANIES FROM THE FORTUNE 100 TO SMALL SPECIALTY FIRMS WITH NICHE MARKETS HAVE REALIZED THE NEED FOR CHANGE MOVING FROM REALIZING THE NEED FOR EFFECTIVE CHANGE TO SUCCEEDING IN SUCH AN EFFORT IS A LONG HARD PROCESS AND THERE ARE MANY TRAPS FOR THE UNWARY THE FACT IS THAT MANY WILL FAIL BUT THEIR FAILURE DOES NOT NEGATE THE NECESSITY FOR SUCCESSFUL OPERATIONS TO RESPOND TO THE NEED FOR CHANGE YES SOMEONE WILL SOON WRITE A NEW BOOK AND INVENT A NEW BUZZ WORD THAT IS TOTALLY IRRELEVANT TO THE UNDERLINING PROBLEM THAT TOO MANY COMPANIES ARE PLAYING THE GAME BY OBSOLETE RULES THE DIFFERENCE BETWEEN EFFORTS TOTAL QUALITY REENGINEERING OR WHATEVER THAT WORK AND THOSE THAT DON'T IS CLEARLY THE DEGREE TO WHICH THE EFFORT IS DRIVEN BY CUSTOMER PRIORITIES RATHER THAN BY INTERNAL ONES DISSEMINATING THE VOICE OF THE CUSTOMER THROUGHOUT YOUR ORGANIZATION ISN'T EASY BUT IT IS QUITE POSSIBLE AND HAS BEEN ACHIEVED ACROSS A WIDE VARIETY OF INDUSTRIES PERHAPS IT WOULD BE USEFUL FOR YOUR READERS TO HAVE A YARDSTICK BY WHICH TO MEASURE THE POTENTIAL EFFECTIVENESS OF EFFORTS SUCH AS BROADBANDING REENGINEERING AND EMPOWERMENT I WOULD SUGGEST A VERY SIMPLE POSTER FOR ALL OF OUR DOORS IT'S THE CUSTOMER STUPID TWO ELEMENTS YOU ALLUDED TO NEED TO BE MORE CLEARLY AND FORCEFULLY PRESENTED THE FIRST STEP IN DESIGNING A HUMAN RESOURCE MOTIVATION PROGRAM IS TO STOP TAKE A STEP BACKWARD AND CLEARLY DEFINE WHAT YOU WANT TO HAPPEN AS THE ARTICLE SUGGESTS MANY COMPANIES MISS THIS STEP WHEN THEY BLINDLY ADOPT THE PROGRAM OF THE MONTH THAT WORKED AT A COMPETITOR DOWN THE STREET ONCE THE DESIRED OUTCOME HAS BEEN CLEARLY DEFINED AND VERBALIZED THE PLAN DESIGN FOLLOWS EASILY THE SECOND POINT IS THE NEED FOR REAL MANAGEMENT COMMITMENT I PERSONALLY WAS VERY DISAPPOINTED WHEN DU PONT DROPPED ITS PRODUCTIVITYSHARING PLAN AT THE FIRST HINT OF A PROBLEM WHERE WAS THE COMMITMENT TO LIVE WITH THE PLAN THROUGH GOOD TIMES AND BAD THE LEAN YEARS ARE THE TIME TO REDOUBLE EFFORTS 9308090153 930809 WHAT'S NEWS WORLDWIDE FOUR US SOLDIERS DIED WHEN THEIR VEHICLE HIT A LAND MINE IN SOMALIA THE ATTACK IN SOUTHERN MOGADISHU WAS THE DEADLIEST ENCOUNTER FOR AMERICAN FORCES SINCE ARRIVING IN SOMALIA LAST YEAR MOMENTS AFTER THE BLAST MANGLED THE MILITARY VEHICLE SOLDIERS FOLLOWING BEHIND WERE PINNED DOWN BY INTENSE GUNFIRE PRESIDENT CLINTON DEPLORED THE ATTACK SAYING THE US WILL ATTEMPT TO FIND OUT WHO IS RESPONSIBLE AND TAKE APPROPRIATE ACTION A UN SPECIAL ENVOY BLAMED THE INCIDENT ON A TERRORIST CAMPAIGN BY CLAN LEADER AIDID WHO HAS ELUDED CAPTURE BY UN FORCES AFTER PAST ASSAULTS ON INTERNATIONAL PEACEKEEPERS UN FORCES HAVE LAUNCHED AIRBORNE ATTACKS ON SUSPECTED AIDID STRONGHOLDS IN THE CAPITAL AT LEAST 100 PEOPLE DIED IN MUDSLIDES AND FLOODS AS TROPICAL STORM BRET BATTERED VENEZUELA'S COAST WITH UNEXPECTED FORCE MORE THAN 400 PEOPLE WERE INJURED AND 4000 LEFT HOMELESS OFFICIALS SAID HARDEST HIT WERE THE SLUMS AROUND CARACAS WHERE 50 MPH WINDS AND HEAVY RAINS CAUSED RAMSHACKLE HOUSING TO COLLAPSE NATO'S MILITARY CHIEFS WILL PRESENT TO THE ALLIES TODAY A TWOSTAGE PLAN OF AIR STRIKES IN BOSNIA BEGINNING WITH A LIMITED STRIKE AND IF SERBS FAIL TO CEASE THEIR ATTACKS A BROADER RANGE OF TARGETS LATER INCLUDING MUNITIONS DUMPS AND COMMAND CENTERS NATO AMBASSADORS ARE EXPECTED TO APPROVE THE PLAN AT A MEETING IN BRUSSELS SERBS MADE NEW PLEDGES TO WITHDRAW FORCES FROM TWO MOUNTAINS NEAR SARAJEVO THEY SAID THEY WOULD LEAVE MOUNT BJELASNICA TODAY AND MOUNT IGMAN IN COMING DAYS IN WASHINGTON A STATE DEPARTMENT AIDE PROBING WAR CRIME ACCUSATIONS AGAINST SERBS HAS QUIT TO PROTEST US POLICY FOR NOT BEING TOUGH ENOUGH OFFICIALS CONFIRMED THREE PALESTINIAN DELEGATES THREATENED TO RESIGN FROM MIDEAST TALKS OVER DISPUTES WITH PLO LEADERS ABOUT BARGAINING POSITIONS THE DELEGATES WERE SAID TO BE UPSET BY A DOCUMENT ON THE STATUS OF JERUSALEM THAT THEY CONSIDERED TOO SOFT THE DOCUMENT ISSUED BY PLO CHIEF ARAFAT WAS GIVEN TO SECRETARY OF STATE CHRISTOPHER LAST WEEK THE US TERRITORY OF GUAM WAS JOLTED BY THE WORLD'S STRONGEST EARTHQUAKE IN FOUR YEARS BUT NO DEATHS WERE REPORTED ON THE WEST PACIFIC ISLAND AND THERE WERE FEW SERIOUS INJURIES THE QUAKE WHICH MEASURED BETWEEN 81 AND 82 ON THE RICHTER SCALE SHOOK CARS FROM BRIDGES AND FORCED TOURISTS TO FLEE DAMAGED HOTELS JAPAN'S NEW PRIME MINISTER NAMED THE CABINET OF HIS SEVENPARTY COALITION GOVERNMENT GIVING THE MOST POWERFUL POSTS TO FORMER MEMBERS OF THE OUSTED LIBERAL DEMOCRATIC PARTY MORIHIRO HOSOKAWA WHO WAS NAMED PRIME MINISTER FRIDAY HAS PROMISED TO MAINTAIN JAPAN'S BASIC ECONOMIC AND DIPLOMATIC POLICIES THE SENATE COMPLETED CONGRESSIONAL ACTION FRIDAY ON A 58 BILLION BILL TO AID THE FLOODHIT MIDWEST AND SENT THE MEASURE TO PRESIDENT CLINTON FOR SIGNING THE BILL INCLUDES DISASTER AID FOR FARMERS BUSINESSES ROAD AND RAIL REPAIRS HOUSING AND FLOOD CONTROL LAWMAKERS ALSO APPROVED AN ADDITIONAL 500 MILLION IN LOANS KAZAKHSTAN'S PRESIDENT CONDEMNED A DEMAND BY MOSCOW THAT FORMER SOVIET REPUBLICS IN ASIA SIGN AN EXCLUSIVE ECONOMIC AGREEMENT WITH RUSSIA UKRAINE AND BELARUS PRESIDENT NAZARBAYEV SAID HE INTENDED TO PURSUE VARIOUS KINDS OF ECONOMIC PACTS WITH NATIONS IN SOUTH ASIA AND THE MIDDLE EAST AS WELL AS WITH RUSSIA HEAVY CLASHE BROKE OUT BETWEEN AZERBAIJANI AND ARMENIAN FORCES POSSIBLY JEOPARDIZING THE LATEST ATTEMPT AT A CEASEFIRE IN THE BATTLE FOR CONTROL OF THE NAGORNOKARABAKH ENCLAVE SEPARATELY TAJIKISTAN'S FOREIGN MINISTER SAID HIS GOVERNMENT WAS READY TO TALK TO OPPOSITION LEADERS TO END FIGHTING ALONG THE AFGHAN BORDER THE US STOPPED A CHINESE SHIP FROM DELIVERING CHEMICAL WEAPONS INGREDIENTS TO IRAN WASHINGTON OFFICIALS SAID HOWEVER CHINA DISPUTED THE US ALLEGATION AND PROTESTED ACCORDING TO CHINESE NEWS REPORTS US WARSHIPS AND MILITARY PLANES HALTED THE SHIP ON JULY 15 THE SHIP REPORTEDLY CARRIED INGREDIENTS FOR MUSTARD GAS AND NERVE GAS A BOMB DESTROYED THE OFFICE OF A MILITANT HINDU GROUP IN MADRAS INDIA KILLING AT LEAST 10 PEOPLE AND INJURING FOUR POLICE SAID THE GROUP WHICH SEEKS TO ESTABLISH A HINDU NATION IN PLACE OF INDIA'S SECULAR GOVERNMENT DECLARED THE BLAST WAS A PLANNED CONSPIRACY BUT DIDN'T ELABORATE THERE WAS NO IMMEDIATE CLAIM OF REPONSIBILITY 9308090152 930809 INTERNATIONAL JAPAN'S REQUEST TO LIMIT PURCHASES OF FOREIGN BEEF IS LIKELY TO ANGER US BY MICHAEL WILLIAMS STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S GOVERNMENT ASKED THE NATION'S IMPORTERS TO RESTRAIN PURCHASES OF FOREIGN BEEF A MOVE LIKELY TO ANGER THE US AND OTHER MAJOR MEAT EXPORTERS IN A FAMILIAR DISPLAY OF JAPANESE BUREAUCRATIC INTERVENTION IN THE MARKET THE AGRICULTURE MINISTRY MET FRIDAY WITH ABOUT THREE DOZEN TRADING COMPANIES AND ASKED THEM TO COOPERATE IN NOT ENGAGING IN EXCESS IMPORTS MINISTRY OFFICIAL KATSUHIRO OBATA SAID RISING IMPORTS HAVE LED TO A FALL IN JAPANESE BEEF PRICES HURTING DOMESTIC CATTLE RAISERS MR OBATA EXPLAINED IN A TELEPHONE INTERVIEW MR OBATA SAID THE GOVERNMENT DIDN'T RECOMMEND A SPECIFIC BEEFIMPORT TARGET AND ADDED THAT THE REQUEST HAS NO LEGAL FORCE STILL SUCH INFORMAL GOVERNMENT REQUESTS KNOWN AS ADMINISTRATIVE GUIDANCE OFTEN HAVE TREMENDOUS INFLUENCE OVER COMPANIES IN JAPAN ACTION BY THE JAPANESE MINISTRY OF AGRICULTURE TO GET INVOLVED IN RESTRICTING IMPORTS OF BEEF IS NOT ONLY OUTSIDE THE FRAMEWORK OF THE 1988 BEEF AND CITRUS AGREEMENT BUT ALSO AGAINST THE SPIRIT OF THE AGREEMENT SAID A US OFFICIAL IN TOKYO WE ARE CONCERNED ABOUT THEIR EFFORTS TO RESTRICT IMPORTS THE OFFICIAL WOULDN'T COMMENT ON HOW THE US PLANS TO RESPOND TO THE MINISTRY'S REQUEST DESPITE THE MINISTRY'S INFLUENCE IT ISN'T CLEAR HOW MUCH PUNCH ITS REQUEST WILL PACK THE US SAYS THE MINISTRY MADE A SIMILAR APPEAL TO JAPANESE IMPORTERS IN JANUARY 1992 BUT IMPORTS HAVE NEVERTHELESS INCREASED MANY NEW IMPORTERS AND MIDDLEMEN JUMPED INTO THE MARKET IN THE PAST FEW YEARS MAKING IT MUCH MORE DIFFICULT FOR THE MINISTRY TO EXERT PRESSURE ON PRICES AND IMPORT LEVELS THAN FORMERLY WHEN A CARTEL DIVVIED UP THE IMPORT QUOTA THE MINISTRY'S ATTEMPT TO HOLD DOWN JAPAN'S BEEF IMPORTS COMES AT AN AWKWARD TIME JAPAN'S HUGE TRADE SURPLUS IS FUELING TENSIONS WITH ITS TRADING PARTNERS WHO ARE DEMANDING THAT TOKYO DO MORE TO ENCOURAGE IMPORTS THE US IS BATTLING THE AGRICULTURE MINISTRY ON OTHER FRONTS AS WELL INSISTING THAT JAPAN LIFT RESTRICTIONS ON APPLE AND RICE IMPORTS THE MINISTRY'S ACTION ALSO CALLS ATTENTION TO AN APPARENT DOUBLE STANDARD IN JAPAN'S TRADE POLICY JAPAN HAS REJECTED RECENT US DEMANDS THAT TOKYO SET TARGETS FOR JAPANESE IMPORTS OF AMERICAN GOODS SUCH AS SEMICONDUCTORS THAT WOULD VIOLATE FREEMARKET PRINCIPLES JAPANESE LEADERS PROTEST BUT AS THE AGRICULTURE MINISTRY'S MEETING SHOWS THE GOVERNMENT OFTEN HAS NO QUALMS ABOUT TINKERING WITH THE MARKET ESPECIALLY TO PROTECT DOMESTIC INTERESTS DOING SO THROUGH INFORMAL REQUESTS RATHER THAN FORMAL LEGAL PROCEDURES MAKES DOING BUSINESS IN JAPAN AN UNFAIRLY MURKY AFFAIR FOREIGNERS OFTEN COMPLAIN JAPAN ONCE DID HAVE FORMAL QUOTAS ON BEEF IMPORTS BUT THE GOVERNMENT AGREED IN 1988 UNDER HEAVY PRESSURE FROM WASHINGTON TO REPLACE THE LIMITS WITH TARIFFS JAPAN IMPORTED 420000 TONS OF BEEF IN THE YEAR ENDED MARCH 31 UP 30 FROM THE PREVIOUS YEAR ACCORDING TO THE MINISTRY THE TRADE PACT HAS SPURRED THE START OF A SHAKEOUT IN THE JAPANESE BEEF INDUSTRY IMPORTS EXCEEDED DOMESTIC OUTPUT FOR THE FIRST TIME LAST YEAR DURING THE ONGOING RECESSION JAPANESE SUPERMARKETS HAVE HAD GREAT SUCCESS AT SELLING INEXPENSIVE CUTS OF AUSTRALIAN AND AMERICAN BEEF PRICES OF CHEAPER GRADES OF BEEF HAVE FALLEN 60 SINCE 1991 SAID MR OBATA WHO ADDED FARMERS ARE HURTING 9308090151 930809 LETTERS TO THE EDITOR REDUCING EXPLOSIONS IN GRAIN ELEVATORS CONCERNING YOUR JULY 1 PAGE ONE ARTICLE ON THE PRACTICE OF USING WATERBASED GRAINDUSTSUPPRESSION SYSTEMS BY US GRAIN HANDLERS WE HAVE ALWAYS MADE WORKER SAFETY THE PARAMOUNT CONCERN IN THE OPERATION OF OUR BUSINESS AFTER CAREFUL RESEARCH AND ANALYSIS WE CONCLUDED THAT WATERBASED DUSTSUPPRESSION SYSTEMS ARE THE MOST EFFECTIVE AND VIABLE MEANS OF CONTROLLING DUST AND VIRTUALLY ELIMINATE THE HISTORIC RISK OF FIRES AND EXPLOSIONS IN GRAIN ELEVATORS OUR INSURANCE UNDERWRITERS AGREE NONE OF OUR ELEVATORS EQUIPPED WITH WATERBASED SUPPRESSION SYSTEMS HAVE EVER EXPLODED AND WATERBASED SAFETY SYSTEMS HAVE RESULTED IN CLEANER ELEVATORS IMPROVED RESPIRATORY ATMOSPHERES FOR OUR EMPLOYEES AND REDUCED DUST EMISSIONS INTO THE ENVIRONMENTS SURROUNDING OUR FACILITIES IN SOME CASES THE USE OF WATER HAS A MINIMAL EFFECT ON THE WEIGHT OF THE GRAIN ALL GRAIN SHIPMENTS UNAVOIDABLY CONTAIN A WEIGHT COMPONENT IN THE FORM OF MOISTURE MOISTURE IS INTRODUCED TO GRAIN AND TO GRAIN PRODUCTS IN A BROAD VARIETY OF PRACTICES WHILE THE AMOUNT OF WATER USED IN OUR DUST SUPPRESSION SYSTEM IS RELATIVELY SMALL WE HAVE LONG ADVOCATED RATIONAL REGULATION OF THIS GRAINDUSTCONTROL PRACTICE BY THE AGRICULTURE DEPARTMENT WE HAVE PROPOSED A STRICT PERMIT SYSTEM APPROACH THAT THROUGH TAMPERPROOF COMPUTERIZED CONTROLS ASSURES THAT ELEVATOR PRACTICE ADHERES TO AGRICULTURE DEPARTMENT SCIENTIFIC FINDINGS ALTERNATIVELY WE HAVE PROPOSED PRICING GRAIN AT ITS DRY WEIGHT ON AN INDUSTRYWIDE BASIS WE BELIEVE THAT EITHER APPROACH WOULD LEAD TO THE PRESERVATION OF A SUPERIOR SAFETY AND ENVIRONMENTAL PRACTICE WHILE EFFECTIVELY ELIMINATING ANY POTENTIAL ECONOMIC ABUSE WE ARE PROUD OF PEAVEY'S LONG AND DISTINGUISHED REPUTATION FOR GRAIN ELEVATOR SAFETY IN AN INTERESTING PARALLEL ALMOST A CENTURY AGO OUR COMPANY'S FOUNDER WAS INITIALLY CRITICIZED FOR BUILDING THE FIRST CONCRETE GRAIN ELEVATOR IN THE US IN AN EFFORT TO REDUCE THE INCIDENCE OF FIRE AND EXPLOSION IN HIS FACILITIES OF CUSTOMARY WOODEN CONSTRUCTION TODAY ALL MAJOR GRAIN ELEVATORS ARE CONCRETE WE BELIEVE THAT THE WATERBASED SAFETY SYSTEM IS ANOTHER EXAMPLE OF AN INNOVATION THAT WILL SAVE LIVES IN OUR INDUSTRY 9308090149 930809 WHO'S NEWS DIENSTBIER'S DEPARTURE SPARKS FURTHER LOSSES IN ARKLA INC'S SHARES A WALL STREET JOURNAL NEWS ROUNDUP ARKLA INC'S STOCK PRICE CONTINUED TO FALL FRIDAY ON NEWS OF THE DEPARTURE OF THE COMPANY'S PRESIDENT AND CHIEF OPERATING OFFICER DAN DIENSTBIER ARKLA'S SHARES SLIPPED 50 CENTS OR 57 TO 825 IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING FOLLOWING A 54 DROP ON THURSDAY WHEN MR DIENSTBIER'S DEPARTURE WAS ANNOUNCED MR DIENSTBIER A NATURALGAS PIPELINE EXPERT KNOWN FOR HIS TROUBLESHOOTING SKILLS JOINED ARKLA IN JULY 1992 SOON AFTER THERE WAS SPECULATION HE WOULD BECOME ARKLA'S NEXT CHIEF EXECUTIVE BUT THE 53YEAROLD MR DIENSTBIER WAS PASSED OVER IN JANUARY WHEN ARKLA NAMED LONGTIME INSIDER T MILTON HONEA TO SUCCEED THOMAS F MCLARTY WHO BECAME PRESIDENT CLINTON'S CHIEF OF STAFF MR DIENSTBIER A FORMER ENRON CORP EXECUTIVE ACKNOWLEDGED HE WAS SURPRISED HE DIDN'T GET ARKLA'S TOP POST BUT SAID HE IS LEAVING BECAUSE HE HAS VIRTUALLY COMPLETED HIS ASSIGNMENT OF TURNING AROUND THE COMPANY'S TROUBLED PIPELINE BUSINESS I'VE DONE IT AND NOW IT'S TIME TO MOVE ON HE SAID ARKLA BASED IN SHREVEPORT LA HAS BEEN SHOWING IMPROVED RESULTS FROM ITS PIPELINE BUSINESS ANALYSTS SAID THE SELLOFF IN ARKLA'S STOCK REFLECTS THE MARKET'S INITIAL DISAPPOINTMENT IN MR DIENSTBIER'S DEPARTURE BUT THESE ANALYSTS SAID HIS DECISION TO LEAVE WAS NO SURPRISE AND DOES NOT REPRESENT AN INSURMOUNTABLE LOSS THERE'S SOME INITIAL DISAPPOINTMENT WITH HIS LEAVING BECAUSE MR DIENSTBIER IS A HIGHPROFILE EXECUTIVE WITH AN EXCELLENT REPUTATION SAID DAN TULIS A NATURALGAS ANALYST WITH SMITH BARNEY BUT ARKLA IS THE SAME COMPANY TODAY THAT IT WAS BEFORE MR DIENSTBIER'S DEPARTURE ARKLA HAS INITIATED A SEARCH FOR A SUCCESSOR TO MR DIENSTBIER 9308090148 930809 HEALTH OFFERING AEROBICS KARATE AQUATICS HOSPITALS STRESS BUSINESS OF WELLNESS' BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL LOOKING FOR SOMEWHERE TO LEARN HOW TO BELLY DANCE TRY YOUR LOCAL HOSPITAL TIMES USED TO BE THAT THE HOSPITAL WAS WHERE YOU WENT WHEN YOU GOT SICK NOT ANYMORE WITH PRESSURE FROM INSURANCE COMPANIES AND OTHER PAYERS TO KEEP PEOPLE OUT OF EXPENSIVE HOSPITAL BEDS HOSPITALS ARE NOW JUMPING INTO THE BUSINESS OF WELLNESS THAT FUZZY TERM THAT CAN ENCOMPASS EVERYTHING FROM MEDITATION CLASSES TO AEROBICS TO YOGA SOME HOSPITALS ARE INSTALLING PHYSICAL FITNESS AND WORKOUT CENTERS JOGGING PROGRAMS EVEN HEALTH CLUBS COMPLETE WITH STEAM ROOMS AT THE RIVERSIDE WALTER REED HOSPITAL IN GLOUCESTER VA THERE ARE ABOUT FIVE TIMES MORE PEOPLE AT THE FITNESS CENTER EACH DAY THAN THERE ARE PATIENTS IN THE ACUTECARE HOSPITAL THE BELLYDANCING COURSE IS OFFERED AT RUSHPRESBYTERIAN HOSPITAL IN CHICAGO AND FOR 13 THIS PAST WINTER ST LOUIS MO RESIDENTS WERE TOLD TO BRING THEIR JOURNAL AND FAVORITE PEN TO CHRISTIAN HOSPITAL FOR A COURSE CALLED THE JOYS OF JOURNALING IF HOSPITALS ARE GOING TO SURVIVE IN A MANAGEDCARE ENVIRONMENT THEY MUST DO MORE THAN SIMPLY PROVIDE A SICKBED ANALYSTS SAY WITH HEALTH REFORM BEARING DOWN MANY HOSPITALS ARE PREPARING FOR THE DAY WHEN THEY MAY BE PAID A LUMP SUM TO PROVIDE CARE TO A GROUP OF PEOPLE IN SUCH AN ENVIRONMENT IT IS IN THE HOSPITAL'S BEST INTEREST TO KEEP PEOPLE WELL NOT SICK WHAT'S MORE HOSPITALS REASON THAT THE PEOPLE WHO ATTEND THEIR WELLNESS PROGRAMS WILL FEEL A CERTAIN LOYALTY TO THE HOSPITAL WHEN THEY DO GET SICK A LOT OF HOSPITALS ARE REALIZING THAT WELLNESS IS WHERE IT'S AT TODAY SAYS SANDY WENDEL SPOKESWOMAN FOR THE WELLNESS COUNCILS OF AMERICA BUT THAT TREND SOME CRITICS SAY MAY LEAD TO PATIENTS GETTING HERDED INTO EXPENSIVE TESTS AND TREATMENTS THEY MIGHT NOT NEED MOST OF THE WELLNESS PROGRAMS TODAY INCLUDE FREE TESTING FOR CHOLESTEROL HIGH BLOOD PRESSURE AND THE LIKE TESTING THAT CAN SEND MORE PATIENTS TO THE HOSPITAL ITSELF BY RAISING ATTENTION TO HEALTH ISSUES YOU SEND PEOPLE TO THE DOCTOR SAYS DONALD GEMSON ASSISTANT PROFESSOR OF CLINICAL HEALTH AT COLUMBIA UNIVERSITY AND MEDICAL DIRECTOR AT MERRILL LYNCH AND CO I WOULD GUESS THAT'S A PART OF THEIR INTEREST IN THE FIELD THE MORE YOU TEST PEOPLE THE MORE YOU'LL GET BUSINESS TESTING A LARGE NUMBER OF PEOPLE FOR A VARIETY OF ILLNESSES IS BOUND TO LEAD TO FALSE POSITIVES HEALTH EXPERTS SAY WE DO TOO MUCH TESTING SAYS ONE FEDERAL HEALTH OFFICIAL JUST BECAUSE A LITTLE PREVENTION IS GOOD DOESN'T MEAN A LOT OF PREVENTION IS BETTER THESE ARE WAYS TO CAPTURE PATIENTS ACKNOWLEDGES JOHN GREENE ACTING EXECUTIVE DIRECTOR OF THE ASSOCIATION OF HOSPITAL HEALTH AND FITNESS CENTERS YOU WALK IN SIGN UP THE FIRST THING THEY DO IS GIVE YOU A HEALTH RISK APPRAISAL IF YOU'RE AT RISK YOU'RE GIVEN A PHYSICIANADMINISTERED STRESS TEST OR SENT TO A PHYSICIAN SO WE'VE TAKEN THIS POOL OF PEOPLE AND SENT SOME TO DOCTORS OR TO THE HOSPITAL THEY'VE ENTERED THE HOSPITAL POOL THAT HOSPITAL POOL HAS BEEN SHRINKING OF LATE AS MANAGEDCARE FIRMS AND INSURANCE COMPANIES CONTINUE TO CUT REIMBURSEMENTS AND PRESSURE HOSPITALS TO SHORTEN THEIR AVERAGE LENGTHS OF STAY ACCORDING TO THE AMERICAN HOSPITAL ASSOCIATION THE AVERAGE OCCUPANCY RATE AT THE NATION'S HOSPITALS DECLINED TO 661 IN 1991 FROM 76 IN 1981 AT A CROSSROADS SO FOR HOSPITALS WELLNESS PROGRAMS AND FITNESS CENTERS CAN SERVE TWO PURPOSES THEY CAN HELP BOLSTER THE HOSPITAL POOL NOW THROUGH REFERRALS AND THEY CAN HELP HOSPITALS PREPARE FOR A FUTURE WHEN THEY ASSUME MORE OF A ROLE AS PROVIDER WE'RE AT A CROSSROADS IN HEALTH CARE SAYS BUD RAIMEY PUBLICRELATIONS DIRECTOR OF RIVERSIDE REGIONAL MEDICAL CENTER IN NEWPORT NEWS VA WE CAN CONTINUE AS SICKNESS FACILITIES OR WE CAN EMBRACE WELLNESS A SPRINKLING OF HOSPITALS BEGAN EMBRACING WELLNESS PROGRAMS IN THE LATE 1970S BUT IT WASN'T UNTIL THE LATE 1980S AFTER HEALTH COSTS SKYROCKETED AND HOSPITALS THEMSELVES CAME UNDER SIEGE THAT PROGRAMS LIKE HOSPITALBASED HEALTH AND FITNESS CLUBS TOOK OFF MR GREENE AT THE ASSOCIATION OF HOSPITAL HEALTH AND FITNESS CENTERS ESTIMATES THAT THERE ARE NOW SOME 150 HEALTH AND FITNESS CENTERS RUN BY HOSPITALS UP FROM ALMOST NOTHING 15 YEARS AGO THAT NUMBER IS EXPECTED TO MUSHROOM AS NATIONAL HEALTH REFORM MOVES CLOSER IN ADDITION HUNDREDS MORE HOSPITALS NOW RUN LIMITED WELLNESS PROGRAMS THAT THEY MARKET TO THE COMMUNITY AND CORPORATE CLIENTS THE HEALTH CENTERS OFFER THE USUAL BATTERY OF AEROBICS CLASSES NAUTILUS MACHINES AND SWIMMING THAT ARE FOUND IN TYPICAL HEALTH CLUBS MANY ALSO OFFER BASKETBALL COURTS GYMNASIUMS SAUNAS AND WHIRLPOOLS AND BECAUSE THESE CENTERS ARE HOSPITALOWNED THEY ACQUIRE A COMMUNITY STATUS OFTEN ASSOCIATED WITH SAY A YMCA IN GLOUCESTER A RURAL TOWN ON THE CHESAPEAKE BAY IN SOUTHEASTERN VIRGINIA THE HEALTH CENTER AT RIVERSIDE WALTER REED HOSPITAL IS A HUBBUB OF ACTIVITY SOME 400 GLOUCESTER COUNTY RESIDENTS SHOW UP EVERY DAY OFTEN BRINGING ENTIRE FAMILIES FOR A FEW HOURS OF PHYSICAL AND SOCIAL ACTIVITY THERE'S NOT MUCH ELSE TO DO IN GLOUCESTER SAYS LAVONNE JOYCE DIRECTOR OF THE CENTER PEOPLE DRIVE 45 MINUTES TO GET HERE LAST SPRING THE CENTER STAGED AN AFTERPROM PARTY FOR HIGHSCHOOL PROM GOERS THAT LASTED UNTIL DAWN KARATE TAI CHI AND MEDITATION COURSES ARE ALSO PART OF MANY HOSPITAL PROGRAMS ALONG WITH THE MORE UNIVERSALLY ACCEPTED PREVENTIVE COURSES LIKE SMOKINGCESSATION AND WEIGHTLOSS MANAGEMENT AND EVEN THE MORE UNUSUAL COURSES LIKE CHRISTIAN HOSPITAL'S JOURNALING CLASS CAN FALL UNDER THE HEADING OF STRESS MANAGEMENT FOR THE CONSUMER THE CENTERS CAN BE EXPENSIVE IN ATLANTA PIEDMONT HOSPITAL'S FITNESS CENTER COSTS 150 TO JOIN AND APPROXIMATELY 45 A MONTH AFTER THAT BUT CENTER OPERATORS ARE QUICK TO POINT OUT THAT THE FEES PAY FOR COLLEGEEDUCATED EXERCISE PHYSIOLOGISTS WHO WILL KNOW WHETHER SOMEONE WITH SAY A BACK PROBLEM SHOULD BE WORKING OUT WITH A NAUTILUS MACHINE STILL WE HAVE A CAPITALISTIC MOTIVE HERE SAYS MR RAIMEY OF RIVERSIDE MEDICAL CENTER IN NEWPORT NEWS VA ADDS MR GREENE OF THE ASSOCIATION OF HOSPITAL HEALTH AND FITNESS CENTERS IT'S NOT UNUSUAL FOR A LARGE CENTER TO BE EARNING HALF A MILLION DOLLARS A YEAR IN NET PROFIT 9308090147 930809 WHO'S NEWS BLOCKBUSTER ENTERTAINMENT CORP BLOCKBUSTER ENTERTAINMENT CORP FORT LAUDERDALE FLA BILL BURNS 46 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF PRESIDENT OF THIS VIDEO RETAILER'S ENTERTAINMENT CENTER DIVISION MR BURNS MOST RECENTLY SERVED AS DIRECTOR OF WALT DISNEY CO'S MAGIC KINGDOM AT DISNEY WORLD BLOCKBUSTER SAID MR BURNS WOULD HELP DEVELOP INDOOR ENTERTAINMENT CENTERS ADJACENT TO ITS VIDEO AND MUSIC STORES AS WELL AS FREESTANDING GOLF AND GAMES CENTERS 9308090146 930809 LAW LEGAL BEAT TRIAL LAWYERS PINPOINT AREAS FOR LITIGATION BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO AUTOMATICDOOR MAKERS TAKE HEED YOU MAY SOON BE GETTING SLAMMED WITH A LAWSUIT MAKERS OF BICYCLES CAR BATTERIES COMPUTERS AND DRYCLEANING FLUID ALSO SHOULD BE ON THE ALERT THEY ARE AMONG THE GROUPS TARGETED THIS YEAR BY THE NATION'S LEADING ORGANIZATION OF PLAINTIFFS' LAWYERS MEMBERS OF THE ASSOCIATION OF TRIAL LAWYERS OF AMERICA MET HERE LAST WEEK FOR THEIR ANNUAL CONVENTION WHERE AMONG OTHER THINGS THEY PICKED UP POINTERS ON ADVERTISING FROM A COMPANY SPECIALIZING IN DIGNIFIED LAW FIRM MARKETING AND PARTICIPATED IN A CHARITY RAFFLE FOR A NEW 37000 BMW BUT MOST OF ALL THEY CAME FOR THE LITIGATION GROUPS FORMAL WORKING NETWORKS IN WHICH LAWYERS SWAP HELPFUL HINTS ABOUT THE LATEST TRENDS IN EMERGING AREAS OF THE LAW THE TRIAL LAWYERS COMPARE NOTES ON SUCH MATTERS AS RECENT SETTLEMENTS USE OF EXPERT WITNESSES AND COMMON DEFENSES EMPLOYED BY CORPORATE DEFENDANTS OVER THE PAST YEAR ABOUT 30 NEW WORKING GROUPS HAVE BEEN FORMED BY ASSOCIATION MEMBERS RAISING TO ROUGHLY 80 THE NUMBER OF SUCH GROUPS NOW IN OPERATION FOR POTENTIAL DEFENDANTS THE GROUPS CAN BE SEEN AS A SORT OF EARLYWARNING SYSTEM AS AN AREA OF LITIGATION HEATS UP PLAINTIFFS' LAWYERS FROM AROUND THE COUNTRY START COMMUNICATING WITH ONE ANOTHER AND IF THERE'S ENOUGH INTEREST AND ENOUGH MONEY INVOLVED THEY MAY ESTABLISH A FORMAL WORKING GROUP GROUPS USUALLY DEVELOP INTERNAL NEWSLETTERS AND MEMBERS MAY MEET MORE THAN ONCE A YEAR OFTEN THERE HAS BEEN LITIGATION IN AN AREA FOR MANY YEARS BEFORE A GROUP IS FORMED SUITS BY PEOPLE WHO ARE ROBBED OR ATTACKED IN HOTELS FOR EXAMPLE HAVE BEEN COMMON SINCE THE MID1970S BUT A WORKING GROUP WAS ESTABLISHED ONLY ABOUT A YEAR AGO LARGELY BECAUSE OF RECENT GROWTH IN THE NUMBER AND SIZE OF JURY VERDICTS PARTICIPANTS SAY SUCH GROUPS HELP PLAINTIFFS AND THEIR LAWYERS BATTLE POWERFUL CORPORATE DEFENDANTS MORE EVENLY BUT INDUSTRY GROUPS QUESTION THEIR MOTIVES I THINK THEY DEMONSTRATE THAT THE PLAINTIFFS' LAWYERS ARE AMONG THE MOST ASTUTE BUSINESSPEOPLE IN AMERICA SAYS MARTIN CONNOR PRESIDENT OF THE AMERICAN TORT REFORM ASSOCIATION A WASHINGTON DC INDUSTRY GROUP SEEKING CHANGES IN STATE LIABILITY LAWS THEY REALLY KNOW HOW TO GO AFTER A MARKET AMONG THOSE GROUPS MEETING HERE FOR THE FIRST TIME WAS ONE ON COMPUTER VENDOR LIABILITY HEADED BY BOSTON LAWYER BRUCE BIERHANS LAST FALL MR BIERHANS SAYS HE WON A SETTLEMENT ON BEHALF OF A MASSACHUSETTS CREDIT UNION AGAINST A COMPUTER COMPANY FOR SOME ALLEGEDLY DEFECTIVE SOFTWARE THAT PREVENTED THE INSTITUTION FROM BALANCING ITS BOOKS LEADING TO MAJOR FINANCIAL PROBLEMS IN THE PAST COMPUTER USERS HAVE TRIED TO WORK OUT PROBLEMS WITH SUPPLIERS WITHOUT GOING TO COURT SAYS MR BIERHANS WHO THINKS THAT ATTITUDE MAY BE CHANGING AS COMPUTERS BECOME MORE PERVASIVE AND THE STAKES INVOLVED RISE I SEE THESE SUITS POSSIBLY COMING OUT OF THE WOODWORK HE ADDS ANOTHER NEW GROUP HAS BEEN FORMED ON PENILE IMPLANTS THE IMPLANTS ARE USED FOR PATIENTS SUFFERING FROM IMPOTENCY OFTEN A SECONDARY PROBLEM FOR PEOPLE WHO HAVE DIABETES OR HAVE UNDERGONE CANCER SURGERY WILLIAM J MORTON AN ATLANTA LAWYER AND UROLOGIST SAYS SOME OF THE IMPLANTS BEING MANUFACTURED ARE DEFECTIVE AND NOW LAWSUITS ARE BEGINNING TO BE FILED WE HAD A TREMENDOUS TURNOUT AT THE FIRST MEETING OF THE PENILE IMPLANT LITIGATION GROUP SAYS DR MORTON WHO IS CHAIRING THE COMMITTEE LAWYERS HAVE ALWAYS DISCUSSED THEIR CASES AT SUCH CONVENTIONS BUT THE FORMALIZATION OF THE PROCESS IS A RELATIVELY RECENT PHENOMENON IN EARLY YEARS THE LITIGATION GROUPS WERE SOMEWHAT FROWNED UPON BECAUSE SOME ATTORNEYS TRIED TO USE THEM AS A WAY OF HORNING IN ON OTHER LAWYERS' CASES NOW THERE IS AN INFORMAL HONOR SYSTEM WHEREBY THEY ARE VIEWED AS STRICTLY INFORMATIONAL AND OFF LIMITS TO THE PRESS EDSON HOWARD RAFFERTY COCHAIRMAN OF THE TRIAL LAWYER ASSOCIATION'S AUTOMATIC DOOR LITIGATION GROUP SAYS THE GROUP WAS USEFUL IN SPOTTING INCONSISTENCIES IN THE TESTIMONY OF AN EXPERT FAVORED BY ONE BIG DOOR MANUFACTURER MR RAFFERTY WHOSE CAMBRIDGE MASS FIRM RECENTLY WON A 200000 SETTLEMENT FROM A MANUFACTURER ON BEHALF OF AN 80YEAROLD WOMAN WHO FRACTURED A HIP AFTER BEING KNOCKED DOWN BY AN AUTOMATIC SLIDING DOOR IN A HOSPITAL SAYS THERE ARE THOUSANDS OF DEFECTIVE AUTOMATIC DOORS IN THIS COUNTRY DOOR MANUFACTURERS STRONGLY DISAGREE THAT STATEMENT IS ABSOLUTELY FALSE SAYS A SPOKESWOMAN FOR STANLEY WORKS A LEADING PRODUCER BASED IN NEW BRITAIN CONN ASIDE FROM DEFECTIVE PRODUCTS LITIGATION GROUPS HAVE BEEN FORMED IN SUCH AREAS AS ABORTION AND DENTAL MALPRACTICE DOMESTIC VIOLENCE AND GROUP B STREP A POTENTIALLY DANGEROUS BACTERIA THAT AFFECTS NEWBORN BABIES THE TRIAL LAWYERS' GROUP IN GENERAL IS MAKING SOMETHING OF A COMEBACK THESE DAYS AFTER A DOZEN YEARS OF FACING OFTENWITHERING FIRE FROM TWO REPUBLICAN ADMINISTRATIONS A RECORD NUMBER OF PEOPLE ABOUT 3400 ATTENDED THE CONVENTION WHILE MEMBERSHIP IN THE ORGANIZATION IS EXPECTED TO INCREASE THIS YEAR FOR THE SECOND YEAR IN A ROW SAYS HOUSTON LAWYER AND ASSOCIATION SECRETARY HOWARD L NATIONS THE RISE IN MEMBERSHIP REFLECTS A GROWING NUMBER OF WOMEN AND MINORITIES AS WELL AS ATTORNEYS FROM OVERSEAS THE BMW WAS WON BY A LAWYER FROM LONDON PART OF THE ORGANIZATION'S GROWING INTERNATIONAL WING AT THE SAME TIME THERE IS THE POSSIBILITY THAT THE CLINTON ADMINISTRATION WILL INCLUDE LIMITS ON MEDICAL MALPRACTICE LAWSUITS IN ITS HEALTHCARE OVERHAUL THAT WOULD BE A MAJOR IRONY SINCE TRIAL LAWYERS WERE AMONG MR CLINTON'S BIGGEST SUPPORTERS IN LAST FALL'S ELECTION HEALTHCARE REFORM IS OUR MAJOR CONCERN AT THIS POINT SAYS ROXANNE BARTON CONLIN A DES MOINES IOWA LAWYER AND THE ASSOCIATION'S OUTGOING PRESIDENT PAUL WEISS RIFKIN WHARTON & GARRISON HAS JOINED THE RANKS OF LAW FIRMS IN HOT WATER WITH SAVINGS AND LOAN REGULATORS FOR LEGAL WORK DONE FOR FAILED THRIFTS THE NEW YORK LAW FIRM SAID IT IS IN NEGOTIATIONS WITH RESOLUTION TRUST CORP AND THE OFFICE OF THRIFT SUPERVISION OVER POSSIBLE CLAIMS STEMMING FROM ITS WORK FOR CENTRUST SAVINGS CENTRUST A MIAMIBASED THRIFT THAT INVESTED HEAVILY IN JUNK BONDS THROUGH DREXEL BURNHAM LAMBERT WAS SHUT DOWN BY FEDERAL REGULATORS IN 1990 AND ITS BAILOUT IS ESTIMATED TO HAVE COST TAXPAYERS ABOUT 17 BILLION PAUL WEISS REPRESENTED CENTRUST AND ITS FORMER CHAIRMAN DAVID PAUL IN THE THRIFT'S HIGHFLYING DAYS THE PAUL WEISS SETTLEMENT TALKS WERE FIRST REPORTED IN BUSINESS WEEK ON FRIDAY BUSINESS WEEK SAID SOURCES CLOSE TO THE TALKS EXPECT PAUL WEISS TO PAY BETWEEN 40 MILLION AND 45 MILLION TO SETTLE THOUGH THAT AMOUNT COULDN'T BE CONFIRMED BOTH THE RTC AND THE OFFICE OF THRIFT SUPERVISION DECLINED TO DISCUSS THE NEGOTIATIONS AND PAUL WEISS WOULDN'T COMMENT ON DETAILS OF THE POSSIBLE SETTLEMENT EARLIER THIS YEAR THE CHICAGO LAW FIRM JONES DAY REAVIS & POGUE AGREED TO PAY THRIFT REGULATORS A RECORD 51 MILLION TO SETTLE CLAIMS THAT IT AIDED IN MISCONDUCT AT LINCOLN SAVINGS & LOAN ASSOCIATION AND NEW YORK LAW FIRM KAYE SCHOLER FIERMAN HAYS & HANDLER LAST YEAR AGREED TO PAY 41 MILLION TO SETTLE ITS LINCOLNRELATED DISPUTE WITH REGULATORS MANY OTHER LAW FIRMS AROUND THE COUNTRY HAVE AGREED TO MUCH SMALLER SETTLEMENTS OVER THEIR WORK FOR FAILED SAVINGS AND LOANS THRIFT REGULATORS HAVEN'T FILED A LAWSUIT OR ADMINISTRATIVE ACTION AGAINST PAUL WEISS BUT REPRESENTATIVES OF THE RTC AND THE OFFICE OF THRIFT SUPERVISION SAID IT IS POSSIBLE IN SUCH CASES FOR BOTH THE ALLEGATIONS AND A SETTLEMENT TO BE FILED SIMULTANEOUSLY THE RTC ALREADY HAS FILED THREE SUITS RELATED TO ALLEGED WRONGDOING AT CENTRUST NONE OF WHICH NAMED PAUL WEISS OR ANY OF ITS PARTNERS AS A DEFENDANT IN A SUIT FILED IN NOVEMBER 1990 REGULATORS ARE SEEKING 250 MILLION IN DAMAGES FROM THE THRIFT'S OFFICERS AND DIRECTORS FOR ALLEGED BREACH OF FIDUCIARY DUTY WASTE AND MISMANAGEMENT IN A SEPARATE SUIT FILED EARLIER THIS YEAR THE RTC ACCUSED THE ACCOUNTING FIRM DELOITTE & TOUCHE OF NEGLIGENCE IN ITS AUDITING OF CENTRUST IN A STATEMENT DISTRIBUTED FRIDAY TO ATTORNEYS AT PAUL WEISS THE LAW FIRM SAID ALTHOUGH WE FULLY AND APPROPRIATELY DISCHARGED OUR PROFESSIONAL OBLIGATIONS TO CENTRUST IF AN AMICABLE RESOLUTION CAN BE REACHED IT WOULD BE PREFERABLE TO PROTRACTED LITIGATION THE STATEMENT ADDED IN ALL EVENTS THIS MATTER IS FULLY COVERED BY INSURANCE AND WILL HAVE NO IMPACT ON THE FIRM'S PRACTICE OR ECONOMIC STRENGTH A FEDERAL JURY IN PHILADELPHIA FOUND THAT ONE OF THE CITY'S MOST PROMINENT CORPORATE LAWYERS SEXUALLY HARASSED A FORMER ASSOCIATE IN A HIGHPROFILE TRIAL INVOLVING ONE OF PENNSYLVANIA'S MOST ESTABLISHED LAW FIRMS THE PLAINTIFF KATHLEEN A FREDERICK TESTIFIED THAT RICHARD H GLANTON A PARTNER IN THE PHILADELPHIA OFFICE OF REED SMITH SHAW & MCCLAY BASED IN PITTSBURGH PROMISED TO HELP HER CAREER IN EXCHANGE FOR SEX SHE TESTIFIED THAT SHE LOST HER JOB IN 1989 IN RETALIATION FOR BREAKING OFF THE AFFAIR MR GLANTON A DEPUTY TO FORMER GOV RICHARD THORNBURGH WHO HAS BEEN ACTIVE IN PHILADELPHIA'S POLITICAL AND PHILANTHROPIC CIRCLES IS PRESIDENT OF THE BARNES FOUNDATION A RECENTLY OPENED COLLECTION OF IMPRESSIONIST ART THE JURY DETERMINED THAT UNWELCOME SEXUAL ADVANCES BY MR GLANTON 46 YEARS OLD CREATED A HOSTILE WORK ENVIRONMENT BUT THE JURY AWARDED NO DAMAGES FINDING THAT MS FREDERICK HAD NOT BEEN DISMISSED SOLELY IN RETALIATION FOR ENDING THE AFFAIR JURORS ALSO REJECTED CHARGES OF INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS AND BATTERY BUT AWARDED 125000 IN DAMAGES AGAINST MR GLANTON FOR MAKING DEFAMATORY STATEMENTS ABOUT MS FREDERICK BEFORE THE TRIAL MR GLANTON COULD NOT BE REACHED FOR COMMENT BUT DURING THE TRIAL DENIED HAVING SEX WITH MS FREDERICK HIS LAW FIRM WHICH WAS ABSOLVED OF SIX CHARGES OF SEX DISCRIMINATION EXPRESSED SUPPORT IT'S NOT CLEAR WHAT THE JURY MEANT BY FINDING THERE WAS A HOSTILE WORK ENVIRONMENT AND YET AWARDING NO DAMAGES FOR IT SAID MICHAEL BROWN A PARTNER WHO ACTED AS SPOKESMAN AFTER THE VERDICT ALAN M LERNER MS FREDERICK'S LAWYER SAID HIS CLIENT WAS DELIGHTED THAT HER CLAIM WAS VINDICATED AND SHE WAS FOUND CREDIBLE THE AWARD OF NO DAMAGES IN THE SEXUAL HARASSMENT CHARGE HE SAID TURNED ON INSTRUCTIONS TO THE JURY BY US DISTRICT JUDGE ROBERT F KELLY MR LERNER HAD ARGUED THAT SEXUAL HARASSMENT NEED ONLY BE A SUBSTANTIAL CONTRIBUTING FACTOR IN HER DISMISSAL IN ORDER FOR DAMAGES TO BE WARRANTED JUDGE KELLY INSTRUCTED THAT NO DAMAGES BE RETURNED UNLESS THE JURY COULD FIND THAT SEXUAL HARASSMENT WAS THE SOLE REASON THE CASE DREW WIDE ATTENTION BECAUSE OF COMPARISONS TO THE TELEVISED CONFIRMATION HEARINGS OF SUPREME COURT JUSTICE CLARENCE THOMAS WHO WAS ACCUSED OF SEXUAL HARASSMENT BY FORMER COWORKER ANITA F HILL AS WITH JUSTICE THOMAS MR GLANTON'S CASE BECAME LARGELY A TEST OF CREDIBILITY BETWEEN HIM AND MS FREDERICK WHO'S NEWS THOMAS R DEROSA WILL JOIN THE NEW YORK LAW FIRM PATTERSON BELKNAP WEBB & TYLER AS A PARTNER MR DEROSA FORMERLY A PARTNER AT THE NEW YORK FIRM BEVERIDGE & DIAMOND WILL BE HEAD OF PATTERSON BELKNAP'S ENVIRONMENTAL PRACTICE WADE LAMBERT IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9308090145 930809 SWISS CONSUMER PRICE INDEX BERN SWITZERLAND THE SWISS CONSUMER PRICE INDEX IN JULY DECLINED 01 FROM JUNE AND ROSE 34 FROM JULY 1992 THE GOVERNMENT ANNOUNCED IN JUNE THE INDEX WAS UNCHANGED MONTH TO MONTH AND ROSE 31 YEAR TO YEAR IN JULY 1992 THE CPI DECLINED 03 MONTH TO MONTH AND ROSE 38 YEAR TO YEAR BY COMPONENT LAST MONTH THE MEASURE OF DOMESTIC PRICES WAS UNCHANGED MONTH TO MONTH AND ROSE 37 YEAR TO YEAR WHILE THE GAUGE OF IMPORT PRICES DECLINED 01 MONTH TO MONTH AND ROSE 25 YEAR TO YEAR 9308090144 930809 WHO'S NEWS CHARTER MEDICAL CORP CHARTER MEDICAL CORP MACON GA MAC CRAWFORD 45 YEARS OLD HAS BEEN ELECTED CHAIRMAN OF THIS HOSPITAL OPERATOR MR CRAWFORD CHIEF EXECUTIVE OFFICER PRESIDENT AND CHIEF OPERATING OFFICER OF THE COMPANY SUCCEEDS MICHAEL D HERNANDEZ 45 A DIRECTOR WHO SERVED AS A NONEXECUTIVE CHAIRMAN SINCE MARCH WHEN THE COMPANY'S FOUNDER CHAIRMAN AND CHIEF EXECUTIVE WILLIAM A FICKLING JR WAS REPLACED MR HERNANDEZ WILL REMAIN A DIRECTOR 9308090143 930809 CHAMBERS SIGNS TWO CONTRACTS PITTSBURGH CHAMBERS DEVELOPMENT CO SAID IT SIGNED A FIVEYEAR RESIDUAL AND BYPASS WASTE DISPOSAL CONTRACT WITH REUTER RECYCLING OF FLORIDA INC IN PEMBROKE PINES FLA THE COMPANY SAID THE PACT WHICH BEGINS AUG 9 COULD GENERATE MORE THAN 10 MILLION IN TOTAL REVENUE SEPARATELY CHAMBERS SAID IT SIGNED TWO WASTE COLLECTION TRANSPORTATION AND DISPOSAL CONTRACTS IN VIRGINIA THAT ARE EXPECTED TO GENERATE 6 MILLION IN REVENUE 9308090142 930809 WHO'S NEWS MCGRAWHILL INC MCGRAWHILL INC NEW YORK THIS PUBLISHING COMPANY NAMED STEPHEN S THOMAS PRESIDENT OF ITS DATAPRO INFORMATION SERVICES GROUP WHICH RESEARCHES THE COMPUTER COMMUNICATIONS AND OFFICE TECHNOLOGY INDUSTRIES PREVIOUSLY DIRECTOR OF US PRODUCT MARKETING AT DIGITAL EQUIPMENT CORP THE 38YEAROLD MR THOMAS SUCCEEDS CARL TOBIASEN 38 WHO LEFT THE COMPANY 9308090141 930809 MARINER HEALTH RECEIVES LOAN MYSTIC CONN MARINER HEALTH GROUP INC SAID IT COMPLETED A 20 MILLION REVOLVING CREDIT AND TERM LOAN FACILITY WITH PNC BANK A UNIT OF PNC BANK CORP MARINER WHICH OPERATES HOSPITALS FOR SHORTTERM STAYS SAID IT USED THE PROCEEDS TO REPAY ABOUT 179 MILLION IN DEBT AND RELATED FEES MARINER SAID IT EXPECTS TO LINE UP 50 MILLION IN CREDIT THIS YEAR FOR WORKING CAPITAL AND EXPANSION 9308090140 930809 INTERNATIONAL COYOTES' ALONG THE RIO GRANDE SCOFF AT US PLANS FOR IMMIGRATION CONTROLS BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL ZARAGOZA MEXICO NOT FAR FROM THE RIO GRANDE IN A DUSTY SPRAWL OF RAMSHACKLE HOUSES AND RAGGED HUMANITY ACROSS THE BORDER FROM EL PASO TEXAS CHUY CARDOZA PONDERS HIS FUTURE AS A MERCHANT OF MEN MR CARDOZA IS A COYOTE SLANG HERE FOR A SMUGGLER OF LABORERS INTO THE US AND US PROPOSALS TO CRACK DOWN ON COYOTES AND BEEF UP THE BORDER PATROL THREATEN THE FAMILY BUSINESS BUT MR CARDOZA A LEAN MAN IN TIGHT BLACK JEANS SAYS THAT FOR MEXICO THERE IS STILL A LOT OF NEED FOR JOBS IN THE US AND AS LONG AS THERE IS NEED THERE WILL ALWAYS BE COYOTES ONCE AGAIN A SPOTLIGHT FROM THE US HAS FALLEN ON ILLEGAL IMMIGRATION HIGHSEAS SMUGGLING OF UNDOCUMENTED CHINESE IMMIGRANTS THE ALLEGED LINKS OF OTHER IMMIGRANTS TO THE BOMBING AT THE WORLD TRADE CENTER IN NEW YORK AND AN ANTIIMMIGRANT BACKLASH INSPIRED BY CALIFORNIA'S SAGGING ECONOMY HAVE PROMPTED THE WHITE HOUSE TO TIGHTEN IMMIGRATION CONTROLS PRESIDENT CLINTON PROPOSED 1725 MILLION FOR NEW PROGRAMS LATE LAST MONTH SAYING WE CANNOT AFFORD TO LOSE CONTROL OF OUR OWN BORDERS SMUGGLERS SAY THEY'VE HEARD IT ALL BEFORE THEY NOTE THAT THERE WERE SWEEPING IMMIGRATION REFORMS IN 1986 BUT A PROMISE OF A BORDER PATROL BEEFUP THEN NEVER MATERIALIZED AND ILLEGAL IMMIGRATION SLOWED ONLY BRIEFLY THE SMUGGLERS FIGURE TALKING ABOUT STOPPING ILLEGAL IMMIGRATION WILL MAKE SOME GOOD PRESS FOR PRESIDENT CLINTON JUST AS IT DID FOR PRESIDENT REAGAN BUT THE COYOTES CAN'T BE STOPPED THEY BOAST IF THE BORDER PATROL PUTS A THOUSAND MORE MEN HERE SAYS RAMON A SMUGGLER WITH TATTOOED EARLOBES WHO WOULDN'T GIVE HIS LAST NAME WE'LL PUT IN MORE COYOTES WE LIKE TO MAKE FUN OF THEM SMUGGLERS ARE SO ABUNDANT IN ZARAGOZA THAT A SECTION OF THIS BORDER TOWN IS CALLED THE VALLEY OF THE COYOTES A STOUT WOMAN WITH ORANGISH HAIR TELLS A REPORTER FIVE HUNDRED DOLLARS TO CHICAGO SHOP AROUND IT'S THE BEST PRICE YOU'LL GET A HUGE SIGN ON THE CEMENT BANK OF THE RIO GRANDE SHOWS ONE OF THE DIFFICULTIES FACING THE BORDER PATROL WHILE THE COYOTES PLAY BY NOBODY'S RULES THE SIGN ADVISES ANY IMMIGRANT TO REPORT BORDER PATROL ABUSES BY TELEPHONE CROSSING THE RIVER IS SO EASY THAT EVEN CUSTOMERS WHO RIDE IN STYLE KEPT DRY WHILE BEING PUSHED ACROSS ON HUGE INNER TUBES ARE CHARGED ONLY 3 BY A BAND OF RIVER WORKERS DISCOUNTS ARE AVAILABLE FOR REPEAT CUSTOMERS ONE ENTREPRENEUR EVEN USES A BOAT NAMED THE RIO BRAVO SOCIALWORKER HIS CASELOAD IS HEAVY MR CLINTON'S PROPOSED REFORMS AIM TO GO BEYOND EARLIER PROPOSALS BY TARGETING SMUGGLERS FOR THE FIRST TIME IN DECADES BUT PAST LAWS HAVE PROVED TO BE DIFFICULT TO ENFORCE CURRENTLY A SMUGGLER CAN FACE AS MUCH AS FIVE YEARS IN PRISON BUT FEW SERVE MORE THAN SIX MONTHS WHAT'S MORE THE EFFECTS OF NEW LAWS NEVER SEEM TO LAST ILLEGAL IMMIGRATION FELL SHARPLY JUST AFTER THE 1986 REFORMS BUT IT HAS BEEN RISING STEADILY TOWARD THE 1986 LEVEL OF 16 MILLION APPREHENSIONS BY THE BORDER PATROL THIS YEAR APPREHENSIONS ARE EXPECTED TO REACH 12 MILLION AT THE CALIFORNIA BORDER ILLEGAL IMMIGRATION IS EXPECTED TO DECREASE THIS YEAR BECAUSE OF INCREASED ENFORCEMENT BUT MUCH OF THE FLOW HAS SIMPLY BEEN REROUTED TO THE ARIZONA AND TEXAS BORDERS IN A RECENT CASE BROKEN BY THE EL PASOBASED BORDER PATROL A NETWORK OF SMUGGLERS ROUTED CHINESE IMMIGRANTS FROM CHINA TO BELIZE TO CIUDAD JUAREZ MEXICO AND INTO EL PASO THAT PLAN WAS FOILED BUT ONE OF THE SMUGGLERS PROSECUTED FOR HER ROLE IN THE NETWORK INSISTS THERE MAY BE MANY MORE THE WOMAN YOLANDA TAFOYA HAS NOW RETURNED TO HER JOB TAKING CARE OF YOUNG CHILDREN IN HER EL PASO HOME SHE SAYS BUT SHE SAYS SMUGGLING IS LIKE DRUGS SAYS MRS TAFOYA IF YOU SELL IT THERE WILL BE BUYERS THE SOLUTION IS MORE JOBS IN MEXICO AND WHAT'S GAINED BY PUTTING SMUGGLERS IN JAIL IF THEY PUT ONE IN 10 MORE WILL BEGIN A SEMIRETIRED COYOTE ONCE KNOWN BY THE NICKNAME EL BOTAS OR BOOTS SAYS THE 1986 IMMIGRATION LAW HELPED THE CAUSE OF THE COYOTE BY GRANTING AMNESTY TO LONGTIME ILLEGALS THEN IN THE US NOW WITH SO MANY MORE MEXICANS LEGALLY IN THE US IT'S MUCH EASIER FOR RELATIVES ENTERING THE US ILLEGALLY TO GET ESTABLISHED OUR JOB NOW IS TO REUNITE FAMILIES SAYS BOOTS SMILING 9308090139 930809 FRENCH FIRM BOOSTS STAKE PARIS ASSURANCES GENERALES DE FRANCE SA A STATEOWNED INSURANCE COMPANY SAID IT NOW HOLDS 26 OF THE SHARES AND 174 OF THE VOTING RIGHTS OF CIE IMMOBILIERE DU PHENIX THE REAL ESTATE DEVELOPMENT ARM OF CIE GENERALE DES EAUX PRIOR TO THE PURCHASE OF 15 MILLION SHARES BY ONE OF ITS SUBSIDIARIES PHENIX PROVENCE AGF HELD 20 OF THE STOCK AND 134 OF THE VOTING RIGHTS BUT AGF SAID IT INTENDS TO RESELL ITS STAKE TO OTHER INVESTORS BY DEC 15 NOTING THAT IT HAS AN OPTION TO SELL THEM TO GENERALE DES EAUX 9308090138 930809 SEC'S NEW GUIDELINES SEEK BETTER DISCLOSURE OF PAY TO EXECUTIVES WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION APPROVED NEW GUIDELINES DESIGNED TO PROD COMPANIES TO DO A BETTER JOB COMPLYING WITH EXECUTIVEPAY DISCLOSURE REQUIREMENTS THE AGENCY ALSO VOTED TO PROPOSE SEVERAL TECHNICAL CHANGES TO ITS EXECUTIVEPAY RULES INCLUDING ONE THAT WOULD FORCE COMPANIES TO DISCLOSE THE SALARIES OF TOP OFFICERS EVEN IF THEY RESIGN BEFORE THE END OF THE FISCAL YEAR THE NEW GUIDELINES CONTAINED IN WHAT IS KNOWN AS AN INTERPRETATIVE RELEASE WERE DRAFTED FOLLOWING AN SEC REVIEW OF NEARLY 1000 PROXY STATEMENTS FILED SINCE THE NEW EXECUTIVEPAY RULES WERE ADOPTED LAST YEAR LINDA QUINN HEAD OF THE SEC'S CORPORATE FINANCE DIVISION SAID THE REPORTS RANGED FROM SUPERLATIVE TO ABYSMAL AND MOST WERE SOMEWHERE IN THE MIDDLE MANY OF THE REPORTS SHE SAID WEREN'T SUFFICIENTLY SPECIFIC THE RELEASE CONTAINS EXAMPLES OF THE KIND OF CONCRETE INFORMATION THE SEC WANTS TO SEE PARTICULARLY IN COMPENSATIONCOMMITTEE REPORTS MS QUINN SAID THE SEC ANTICIPATED SOME PROBLEMS DURING THE FIRST ROUND OF PROXIES BUT SAID THE AGENCY EXPECTS 100 IMPROVEMENT NEXT YEAR AND SHE WARNED WE WOULD HAVE TO TAKE SERIOUS ACTION IF WE DON'T GET THAT TYPE OF IMPROVEMENT SEC CHAIRMAN ARTHUR LEVITT PRESIDING OVER HIS FIRST SEC MEETING SAID THE INTERPRETATIVE RELEASE REPRESENTS A FINETUNING NOT A CHANGE IN APPROACH TO THE NEW PROXY RULES THE TECHNICAL CHANGES PROPOSED BY THE SEC WILL BE OPEN FOR COMMENT UNTIL OCT 15 IF THE SEC APPROVES THEM THEY WILL BE IN EFFECT FOR THE NEXT PROXY SEASON SEC COMMISSIONER MARY SCHAPIRO SAID FORCING COMPANIES TO DISCLOSE SALARIES OF EXECUTIVES WHO HAVE LEFT DURING THE YEAR WOULD CLOSE A LOOPHOLE IN THE RULES THE HIGH TURNOVER OF CHIEF EXECUTIVE OFFICERS HAS GIVEN SOME SHAREHOLDERS AN INCOMPLETE PICTURE OF EXECUTIVE COMPENSATION SHE SAID THE PROPOSED CHANGES ALSO WOULD EXTEND THE DISCLOSURE REQUIREMENT TO INCLUDE ALL RESTRICTED STOCK HELD BY TOP EXECUTIVES AT YEAR END CURRENTLY THE DISCLOSURE RULE APPLIES ONLY TO RECENT GRANTS OF RESTRICTED STOCK 9308090137 930809 SLOAN'S SUPERMARKET FORMER OFFICERS PLEAD GUILTY IN COUPON CASE NEW YORK SLOAN'S SUPERMARKET INC AND TWO FORMER OFFICERS PLEADED GUILTY FRIDAY TO OPERATING A COUPON SCAM THAT ALLEGEDLY DEFRAUDED MANUFACTURERS OF AT LEAST 35 MILLION OVER 10 YEARS FEDERAL PROSECUTORS SAID UNDER TERMS OF THE GUILTY PLEA SLOAN'S A NEW YORK SUPERMARKET CHAIN NOW CALLED CMKR CORP AGREED TO FORFEIT 5 MILLION TO THE GOVERNMENT THE TWO OFFICERS GARY MEYER SECRETARY/TREASURER OF SLOAN'S AND STEPHEN KARSCH VICE PRESIDENT PLEADED GUILTY TO ONE COUNT OF CONSPIRACY ANOTHER OFFICER JULES ROSE A FORMER VICE PRESIDENT STILL FACES A MUCH BROADER INDICTMENT THAT INCLUDES RACKETEERING MONEY LAUNDERING AND MAIL FRAUD CHARGES HE HAS PLEADED INNOCENT TO THE CHARGES ACCORDING TO COURT PAPERS FILED BY PROSECUTORS SLOANS BOUGHT IN BULK COUPONS CLIPPED FROM NEWSPAPERS FOR ABOUT 40 OF THEIR FACE VALUE SLOANS ALLEGEDLY TURNED IN THOSE COUPONS FOR REDEMPTION TO NATIONAL COUPON CLEARINGHOUSES OR DIRECTLY TO MANUFACTURERS AS IF THEY HAD BEEN USED BY CUSTOMERS AT ITS SUPERMARKETS THE FRAUD WENT ON FROM THE LATE 1970S UNTIL 1989 PROSECUTORS SAY 9308090136 930809 OTC FOCUS BUT BE WARY IF CASINO' IS PART OF THE NAME BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WANT TO ISSUE SOME NEW STOCK FLASH THE WORD CASINO IN FRONT OF INVESTORS AND YOU'RE HALFWAY THERE THAT'S WHAT CASINO & CREDIT SERVICES IS DOING MONEY MANAGERS SAY FORMERLY CALLED CRW FINANCIAL INC THE PHILADELPHIA PA COMPANY CHANGED ITS NAME TO CASINO & CREDIT SERVICES LAST MONTH THAT WAS JUST PRIOR TO FILING A STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER 2100000 SHARES OF COMMON STOCK AND 1050000 REDEEMABLE WARRANTS THIS IS THE COMPANY'S SECOND TRY AT GOING PUBLIC JUST TWO MONTHS BEFORE UNDER ITS OLD NAME THE COMPANY FILED AN OFFERING WITH THE SEC FOR 16 MILLION SHARES BUT ANALYSTS ARE WARNING INVESTORS THAT CASINO & CREDIT SERVICES ISN'T A GAMBLING COMPANY DESPITE THE NAME IT IS A DEBT COLLECTOR AND RECEIVABLES MANAGER PLANNING TO SOME DAY CASH INTO THE CASINO CRAZE BY EXPANDING ITS RELATIVELY SMALL OPERATIONS THAT SUPPLY CASINO OPERATORS WITH CREDIT INFORMATION ON THEIR PATRONS IT USED TO BE THAT ANY TECHNOLOGY TYPE OF NAME WOULD BOOST A STOCK ISSUE NOW THE MAGIC WORD IS CASINO ANALYSTS SAY EVERYBODY KNOWS CASINO STOCKS HAVE BEEN REALLY HOT SAYS CHARLES RONSON A STOCK PICKER AT NEW YORK INVESTMENT FIRM BALESTRA CAPITAL AND PUBLISHER OF THE IPO VALUE MONITOR NEWSLETTER THIS IS AN OFFERING THAT HAS SOMEHOW OBLIQUELY STUCK IN THE WORD CASINO TO GO PUBLIC AND GET CASH JONATHAN P ROBINSON THE COMPANY'S 29YEAROLD CHIEF FINANCIAL OFFICER SAYS THE NAME WAS CHANGED TO EMPHASIZE THE IMPORTANCE OF THE GAMBLING BUSINESS SO FAR THE CASINORELATED SIDE OF THE COMPANY HASN'T GROWN VERY MUCH IN 1990 AND 1991 THE CASINORELATED DIVISION HAD OPERATING EARNINGS OF ABOUT 13 MILLION BUT PROFIT FELL TO 612000 LAST YEAR THAT'S STILL BETTER THAN THE COMPANY'S DEBT COLLECTION BUSINESS WHICH MANAGED TO POST AN OPERATING LOSS OF 19 MILLION LAST YEAR MR ROBINSON SAYS THE PROBLEM LAST YEAR FOR THE CASINO OPERATION WAS THE STIFF COMPETITION POSED BY CENTRAL CREDIT OF NEW JERSEY INC WHICH IS IN THE SAME BUSINESS BUT THAT PROBLEM WILL BE SOLVED NOW CASINO & CREDIT IS BUYING CENTRAL CREDIT THIS MONTH IN TERMS OF GROWTH FOR THE COMPANY THE CASINO SIDE IS VERY IMPORTANT SAYS MR ROBINSON WE ARE ACQUIRING OUR ONLY COMPETITOR AND THIS WILL HAVE AN IMPACT ON OUR REVENUES BUT ANALYSTS LIKE MR RONSON AREN'T IMPRESSED HE SAYS THE INITIAL PUBLIC OFFERING WHICH IS EXPECTED TO COME TO MARKET THIS WEEK BETWEEN 7 AND 8 1/2 THROUGH UNDERWRITERS LED BY JOSEPHTHAL LYON & ROSS INC WILL DOUBTLESS ATTRACT MANY RETAIL INVESTORS BUT HE WARNS THAT IN THE MIDST OF SUCH BUSTLE INDIVIDUAL INVESTORS OFTEN GET STUCK HOLDING SHARES OF COMPANIES WITH LITTLE BESIDES NICHE MARKETING ANGLES AND CATCHY TITLES THAT HELPED THEM GO PUBLIC MEANWHILE THE BIG INSTITUTIONAL PLAYERS OFTEN FLIP THEIR SHARES OR QUICKLY SELL FOR PROFITS BUYING SHARES IN IPOS LIKE CASINO & CREDIT SERVICES IS PLAYING A GAME NOT INVESTING HE SAYS THIS IS THE SORT OF THING YOU SHOULDN'T HOLD FOR MORE THAN 15 MINUTES SAYS MR RONSON I WOULD RECOMMEND INSTITUTIONAL INVESTORS FLIP BUT SMALL INVESTORS SHOULD STAY AS FAR AWAY AS POSSIBLE FROM THIS DEAL IN ITS PROSPECTUS THE MARKETING DOCUMENT FOR INVESTORS THE COMPANY CONCEDES THAT IT WON'T GENERATE ANY PROFIT FOR THE NEXT SIX MONTHS WHAT'S MORE THE PROSPECTUS CAUTIONS THAT THERE CAN BE NO ASSURANCE THAT THE COMPANY WILL BE ABLE TO ATTAIN PROFITABILITY IN THE FUTURE THE DOCUMENT SAYS THAT THE COMPANY LAST YEAR HAD A LOSS THAT WERE IT PUBLIC AND TAKING INTO ACCOUNT THE ACQUISITIONS WOULD AMOUNT TO 17 CENTS A SHARE ON REVENUE OF 247 MILLION ANOTHER WORRY FOR POTENTIAL INVESTORS IS THE COMPANY'S ADMISSION IN THE PROSPECTUS THAT REVENUE COULD BE HURT THIS YEAR BY THE LOSS OF A MAJOR CUSTOMER THE HIGHER EDUCATION ASSISTANCE FOUNDATION WHICH IN MAY CEASED PLACING STUDENT LOANS WITH THE COMPANY FOR COLLECTION THE COLLECTING OF STUDENT LOANS FOR THE FOUNDATION PROVIDED 51 MILLION OR 21 OF CASINO & CREDIT'S 1992 REVENUE THE CURRENT PRINCIPAL STOCKHOLDERS ACQUIRED OWNERSHIP IN JULY 1992 AND INSTALLED SENIOR MANAGEMENT BUT NEITHER THE PRESIDENT CHIEF EXECUTIVE OFFICER NOR THE PRESIDENT OF THE CASINORELATED DIVISION HAS HAD PRIOR EXPERIENCE IN THE COMPANY'S BUSINESSES THE OWNERS SAY IN THE PROSPECTUS THAT THEY DEPEND UPON THE HEAD OF THE COMPANY'S DEBT COLLECTION UNIT AND REGIONAL MANAGERS TO ADMINISTER BUSINESS SO WHO ARE THE PRINCIPAL STOCKHOLDERS ONE OF THEM IS J BRIAN O'NEILL THE COMPANY'S 33YEAROLD PRESIDENT CHIEF EXECUTIVE AND CHAIRMAN WHO OWNS 25 OF THE COMPANY'S COMMON SHARES NOW AND WILL HOLD 10 AFTER THE OFFERING MR O'NEILL AND OTHER CURRENT STOCKHOLDERS AND HOLDERS OF WARRANTS HAVE PLEDGED THEIR EQUITY AS COLLATERAL FOR THE COMPANY'S DEBT THE PROSPECTUS INDICATES THAT PART OF THE PROCEEDS WILL RELIEVE MR O'NEILL OF THE LIABILITY OF GUARANTOR FOR 6940000 OF THOSE OBLIGATIONS TO THE COMPANY'S BANK AND TO THE COMPANY'S FORMER OWNER PAYING OFF ITS OWN DEBTS APPEARS TO HAVE BEEN A STUMBLING BLOCK FOR CASINO & CREDIT SERVICES EARLIER THIS YEAR THE COMPANY WAS IN VIOLATION OF AN EXISTING DEBT AGREEMENT IN APRIL ITS BANK WAIVED THE COMPANY'S DEFAULT AND ESTABLISHED NEW LOAN AGREEMENTS WITH WHICH THE COMPANY SAYS IT WILL COMPLY WITH AT LEAST THROUGH THE REMAINDER OF THIS YEAR THE OVERTHECOUNTER MARKET RALLIED TO ITS THIRDCONSECUTIVE CLOSING RECORD THE NASDAQ COMPOSITE INDEX CLIMBED 258 OR 036 TO 71808 ADVANCING ISSUES OUTNUMBERED DECLINERS 1435 TO 1300 ON TOTAL VOLUME OF 2511 MILLION SHARES DOWN FROM THURSDAY'S 2698 MILLION ARBOR HEALTH CARE JUMPED 1 3/4 TO 14 3/4 FROM ITS OFFERING PRICE OF 13 THE COMPANY OFFERED 155 MILLION COMMON SHARES THROUGH UNDERWRITERS LED BY ROBERTSON STEPHENS & CO ARBOR PROVIDES MEDICAL SERVICES AND BASIC HEALTHCARE SERVICES AT ITS LICENSED NURSING CENTERS PURITANBENNETT DROPPED 2 3/8 TO 18 1/4 THE OVERLAND PARK KANSAS COMPANY SAID ON THURSDAY THAT EARNINGS FOR ITS FISCAL SECOND QUARTER ENDED JULY 31 WILL BE BELOW THE EXPECTED RANGE OF 15 CENTS TO 20 CENTS A SHARE THE COMPANY BLAMED LOWERTHANPLANNED SECONDQUARTER REVENUE COUPLED WITH FOREIGN CURRENCY EXCHANGE LOSSES RESULTING FROM A STRONGER US DOLLAR PURITANBENNETT MANUFACTURES MEDICAL PRODUCTS USED IN DIAGNOSIS AND TREATMENT OF RESPIRATORY DISEASES THE COMPANY SAID RESTRUCTURING ACTIONS ARE EXPECTED TO INVOLVE ONETIME CHARGES RESULTING IN A SIZEABLE NET LOSS FOR THE QUARTER IMAGE BUSINESS SYSTEMS TUMBLED 1 1/2 TO 6 THE COMPANY REPORTED A LOSS FOR THE SECOND QUARTER OF 38 CENTS A SHARE COMPARED WITH EARNINGS OF 54 CENTS A YEAR EARLIER THE COMPANY SAID SEVERAL CONTRACTS THAT WERE EXPECTED TO CLOSE IN THE LATEST QUARTER HAVE NOT YET CLOSED BUT IT ANTICIPATES THEIR SUCCESSFUL CONCLUSION IMAGE BUSINESS COMPLETED ITS INITIAL PUBLIC OFFERING IN JUNE FOR 18 MILLION SHARES AT 7 EACH THROUGH UNDERWRITERS LED BY PENNSYLVANIA MERCHANT GROUP LTD SEE RELATED STORY HEARD ON THE STREET THE IPO BOOM SELLING A SMALL NUMBER OF SHARES SHOWS SOME BIG SUCCESSES WSJ AUG 9 1993 9308090135 930809 COMPANY FAILURES FELL IN ENGLAND AND WALES DURING THE 2ND QUARTER SPECIAL TO THE WALL STREET JOURNAL LONDON THE NUMBER OF COMPANY FAILURES IN ENGLAND AND WALES FELL IN THE THREE MONTHS THAT ENDED IN JUNE THE THIRD QUARTERLY DROP IN A ROW ACCORDING TO FIGURES RELEASED BY THE BRITISH CHAMBERS OF COMMERCE THE BCC WHICH PUBLISHED THE SEASONALLY ADJUSTED FIGURES USING DATA FROM THE UNITED KINGDOM'S DEPARTMENT OF TRADE & INDUSTRY SAID COMPANY INSOLVENCIES FELL 89 TO 5195 IN THE SECOND QUARTER OF 1993 FROM 5705 IN THE FIRST QUARTER OF THE YEAR AND WERE DOWN 12 FROM 5901 A YEAR EARLIER INSOLVENCIES AMONG INDIVIDUALS FELL 15 TO 8663 IN THE SECOND QUARTER FROM 10233 IN THE FIRST QUARTER AND WERE DOWN 19 FROM 8835 IN THE SECOND QUARTER OF 1992 THE BCC SAID BCC DEPUTY DIRECTOR GENERAL RICHARD BROWN SAID DECLINING LEVELS OF INSOLVENCIES WERE GOOD FOR BUSINESS AND CONSUMER CONFIDENCE AND PROVIDED FURTHER EVIDENCE THAT RECOVERY IS UNDER WAY MR BROWN SOUNDED A NOTE OF CAUTION HOWEVER ABOUT THE CONTINUING RISE OF MANUFACTURING FAILURES A TREND HE DESCRIBED AS DISTURBING THERE HAS TO BE CONCERN OVER THE PERSISTENT SHRINKAGE OF THE UK'S MANUFACTURING BASE MR BROWN SAID IT TAKES YEARS TO BUILD UP A MANUFACTURING COMPANY BUT ONLY WEEKS TO SHUT IT DOWN 9308090134 930809 ECONOMY SLOW ECONOMY IS DELINEATED IN LATEST REPORT NEW JOBS TOTALED 162000 LAST MONTH BUT MOST WERE SUBPAR POSITIONS BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LABORMARKET CONDITIONS STILL SUGGEST THAT THE ECONOMY IS SLUGGISH AND THAT THE QUALITY OF NEW JOBS IS SUBPAR THE ECONOMY GENERATED 162000 NEW JOBS IN JULY ACCORDING TO THE LABOR DEPARTMENT THAT'S A BIG DIFFERENCE FROM THE MEAGER 44000 CREATED IN JUNE AND A WELCOME INCOME BOOST TO THOSE AMERICANS WHO FOUND WORK BUT MOST OF THE GROWTH WAS CONCENTRATED IN LOWERPAYING SERVICE JOBS AS IT HAS BEEN SINCE THE START OF THE RECOVERY FACTORIES WHICH TEND TO HAVE HIGHER PAY AND BETTER BENEFITS CONTINUED TO SLASH THEIR PAYROLLS THE JOB GROWTH IN JULY DID HELP PUSH THE NATION'S UNEMPLOYMENT RATE DOWN TO 68 OF THE WORK FORCE FROM 7 IN JUNE THE LABOR DEPARTMENT CAUTIONED HOWEVER THAT ROUNDING MADE THE DROP LOOK LARGER THAN IT ACTUALLY WAS ANALYSTS SAID THE NEW REPORT DID LITTLE TO CHANGE THE OVERALL PICTURE OF THE ECONOMY'S HEALTH THE BURST OF NEW JOBS IN JULY THOUGH GREATER THAN IN JUNE MERELY MATCHED THE MONTHLY AVERAGE DURING THE FIRST HALF MORE JOB GROWTH WOULD BEGIN TO TELL US THAT THE RECOVERY IS HOLDING AND HAVING AN EFFECT ON THE LABOR MARKET SAID AUDREY FREEDMAN PRESIDENT OF THE MANPOWER PLUS EMPLOYMENT CONSULTING FIRM THE LABOR DEPARTMENT SAID THE OVERALL IMPACT OF THE MIDWEST FLOODING ON JULY'S EMPLOYMENT REPORT WAS QUITE SMALL PART OF THE REASON IS THAT FEW OF THE HOUSEHOLDS IN THE LABOR DEPARTMENT'S SURVEY WERE IN THE FLOOD ZONE ALSO PEOPLE OUT OF WORK BECAUSE OF THE WEATHER AREN'T COUNTED AS UNEMPLOYED THE DEPARTMENT SAID IT WOULD CONTINUE TO MONITOR THE SITUATION SEPARATELY THE FEDERAL RESERVE SAID AMERICANS INCREASED THEIR DEBT LOADS AT AN ANNUAL RATE OF 123 OR 767 BILLION IN JUNE AUTO CREDIT BANKCARD CREDIT AND A CATCHALL CATEGORY THAT INCLUDES LOANS FOR SCHOOL TUITION BOATS AND TAXES ALL INCREASED ANALYSTS SAID CONSUMERS WERE SPENDING BRISKLY ON CARS AND OTHER GOODS DURING THE SECOND QUARTER DESPITE THE TEPID GROWTH IN INCOME SOMETHING HAD TO FILL THAT GAP SAID ROBERT DEDERICK CHIEF ECONOMIST OF NORTHERN TRUST IN CHICAGO IT CAME FROM SAVINGS AND IT CAME FROM PEOPLE RESORTING TO CREDIT MR DEDERICK ADDED HOWEVER THAT SUCH ROBUST SPENDING PROBABLY WOULDN'T CONTINUE WITHOUT INCOME GAINS ABOUT HALF THE OVERALL JOB GROWTH IN JULY OCCURRED IN THE SERVICE SECTOR THE BUSINESSSERVICE COMPONENT CONTINUED TO BE DOMINATED BY TEMPORARYHELP JOBS ANALYSTS SAID PART OF THE BIG GROWTH IN TEMP WORK REPRESENTS A LONGTERM TREND BUT SOME OF IT IS DUE TO THE SHAKINESS OF THE ECONOMIC RECOVERY JOB GROWTH PICKED UP IN CONSTRUCTION AS WELL WITH 24000 JOBS ADDED IN JULY MOST OF THE GROWTH WAS IN ROADBUILDING AND AT SPECIAL TRADES CONTRACTORS MANUFACTURING EMPLOYMENT CONTINUED DIM HOURS OF WORK INCREASED TO RECORD LEVELS BUT FACTORIES LOST 13000 JOBS THAT WAS A MUCH SMALLER LOSS THAN IN THE PRIOR THREE MONTHS BUT STILL CONTINUED A TREND OF STEADY CUTBACKS MOST OF THE JOB LOSSES LAST MONTH WERE IN AIRCRAFT AND INDUSTRIAL MACHINERY ANALYSTS SAID THAT THE LOSSES IN THESE AREASTWO BIG EXPORT ITEMSUNDERSCORE THE WEAKNESS OF MAJOR US TRADING PARTNERS THE AIRCRAFT INDUSTRY IS ALSO UNDERGOING MAJOR LONGTERM ADJUSTMENTS THE INFLATION NEWS IN THE REPORT WAS ENCOURAGING AVERAGE HOURLY EARNINGS CREPT UP 02 AND WEEKLY EARNINGS ROSE 05 CERTAINLY WE AREN'T CLOSE TO HAVING A SHORTAGE OF WORKERS SO WAGE INFLATION WILL BE UNDER CONTROL SAID JOAN D SCHNEIDER SENIOR DOMESTIC ECONOMIST FOR CONTINENTAL BANK IN CHICAGO ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE EXCERPTS FROM THE LABOR DEPARTMENT'S EMPLOYMENT REPORT THE FIGURES ARE SEASONALLY ADJUSTED HERE ARE THE SEASONALLY ADJUSTED TOTALS OF CONSUMER INSTALLMENT CREDIT OUTSTANDING FOR JUNE IN BILLIONS AND PERCENTAGE CHANGES FROM MAY AT AN ANNUAL RATE 9308090133 930809 SELECTIVE INSURANCE GROUP BRANCHVILLE NJ SELECTIVE INSURANCE GROUP INC SAID SECONDQUARTER NET INCOME FELL SHARPLY DUE TO THE ESTABLISHMENT OF A RESERVE TO COVER A PREVIOUSLY ANNOUNCED WORKFORCE REDUCTION THE 9 MILLION RESERVE TO COVER THE COST OF TERMINATING 230 EMPLOYEES REDUCED EARNINGS TO 311000 OR TWO CENTS A SHARE FROM 6 MILLION OR 45 CENTS A SHARE A YEAR EARLIER REVENUE IN THE QUARTER ROSE 13 TO 1668 MILLION FROM 1472 MILLION 9308090132 930809 WHO'S NEWS ZURN INDUSTRIES INC ZURN INDUSTRIES INC ERIE PA ZOE BAIRD 40 YEARS OLD SENIOR VICE PRESIDENT AND GENERAL COUNSEL OF AETNA LIFE & CASUALTY CO WAS NAMED TO THE BOARD OF THIS MANUFACTURER OF POWER SYSTEMS AND EQUIPMENT AND WATERCONTROL PRODUCTS FOR ENVIRONMENTAL APPLICATIONS WITH THE RETIREMENT OF TWO DIRECTORS JUANITA M KREPS AND ALBERT F DUVAL THE BOARD WILL DECREASE TO 10 MEMBERS FROM 11 9308090131 930809 FEDERATED GETS ORDER STOPPING FARAH FROM TAKING POSITION AT RIVAL MACY BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL FEDERATED DEPARTMENT STORES INC RECEIVED A TEMPORARY RESTRAINING ORDER PREVENTING ROGER N FARAH CHAIRMAN OF ITS MERCHANDISING DIVISION FROM ACCEPTING THE JOB OF CHIEF MERCHANT AT ONE OF ITS RIVALS RH MACY & CO THE TEMPORARY RESTRAINING ORDER WAS ISSUED BY A COMMON PLEAS COURT JUDGE IN CINCINNATI SHORTLY AFTER FEDERATED SUED MR FARAH SATURDAY IN THE SUIT FEDERATED SEEKS TO PERMANENTLY ENJOIN MR FARAH FROM BREACHING HIS EMPLOYMENT CONTRACT WITH FEDERATED BY ACCEPTING AN EXECUTIVE POSITION AT MACY AND FROM IMPROPERLY DISCLOSING FEDERATED'S CONFIDENTIAL AND PROPRIETARY TRADE SECRET INFORMATION TO FEDERATED'S SINGLE LARGEST DIRECT COMPETITOR ACCORDING TO COURT PAPERS THE TEMPORARY RESTRAINING ORDER PREVENTS MR FARAH FROM NEGOTIATING OR ACCEPTING A POSITION WITH MACY AND BARS HIM FROM DISCLOSING ANY OF FEDERATED'S CONFIDENTIAL INFORMATION TO MACY AS PREVIOUSLY REPORTED MACY HAD RECENTLY NARROWED ITS CHOICE TO THE 40YEAROLD MR FARAH TO BECOME HEAD MERCHANT ITS CHIEF REPRESENTATIVE TO VENDORS A JOB THAT HAS BEEN VACANT SINCE THE MAY 13 RETIREMENT OF MARK HANDLER MACY'S FORMER COCHAIRMAN AND COCHIEF EXECUTIVE A MACY SPOKESMAN SAID MACY HAD COMPLETED ITS NEGOTIATIONS WITH MR FARAH LAST THURSDAY AND MR FARAH HAD AGREED TO JOIN MACY AS PRESIDENT AND CHIEF OPERATING OFFICER WHOSE DUTIES WOULD INCLUDE BEING CHIEF MERCHANT BEGINNING JULY 1 1994 THE DAY AFTER MR FARAH'S CONTRACT EXPIRES WITH FEDERATED MR FARAH COULDN'T BE REACHED FOR COMMENT WE ARE PLEASED TO HAVE SUCCESSFULLY CONCLUDED OUR SEARCH FOR THIS KEY POSITION AND TO HAVE ATTRACTED AN EXECUTIVE OF MR FARAH'S CONSIDERABLE TALENT SAID MYRON ULLMAN MACY CHAIRMAN AND CHIEF EXECUTIVE IN A STATEMENT MR ULLMAN IN AN INTERVIEW YESTERDAY SAID IT IS PRETTY COMMONPLACE IN OUR INDUSTRY FOR KEY MERCHANDISING TALENT TO HAVE SEVERAL EXPERIENCES DURING THEIR CAREER WITH VARIOUS COMPANIES WE INTEND TO RESPECT MR FARAH'S CONTRACT AND THUS HAVE OFFERED HIM EMPLOYMENT AT THE END OF HIS CURRENT CONTRACT HE ADDED THAT MACY HAS NO INTEREST IN ANY CONFIDENTIAL INFORMATION FROM FEDERATED WE ARE INTERESTED IN MR FARAH FOR HIS LEADERSHIP SKILLS HIS INTELLECTUAL CAPACITY AND HIS TRACK RECORD IN THE INDUSTRY IT IS UNDERSTOOD THAT MACY VIEWS MR FARAH'S CONTRACTUAL OBLIGATIONS WITH FEDERATED AS ENDING JUNE 30 1994 SINCE JULY 1991 MR FARAH HAS BEEN CHAIRMAN AND CHIEF EXECUTIVE OF NEW YORKBASED FEDERATED MERCHANDISING WHICH IS RESPONSIBLE FOR DEVELOPING AND IMPLEMENTING MERCHANDISE STRATEGIES FOR FEDERATED'S DEPARTMENT STORES ACCORDING TO A FEDERATED SPOKESWOMAN MR FARAH IS THE THIRDHIGHESTPAID EMPLOYEE AT THE COMPANY EARNING 1 MILLION IN ANNUAL SALARY AND BONUS LIKE OTHER TOP FEDERATED EXECUTIVES WHO ARE PRIVY TO THE COMPANY'S LONGTERM BUSINESS STRATEGIES MR FARAH HAS SIGNED AN EMPLOYMENT CONTRACT THAT INCLUDES A NOCOMPETE CLAUSE THAT EXTENDS TWO YEARS BEYOND THE CONTRACT'S JUNE 30 1994 EXPIRATION DATE A FEDERATED SPOKESWOMAN SAID THE CONTRACT BARS MR FARAH FROM ACCEPTING EMPLOYMENT WITH BUSINESSES THAT ARE DIRECT COMPETITORS OF FEDERATED CINCINNATIBASED FEDERATED OPERATES DEPARTMENT STORES SUCH AS BLOOMINGDALES ABRAHAM & STRAUS RICH'S AND BURDINES CHAINS THAT COMPETE WITH MACY'S BULLOCK'S AND I MAGNIN DEPARTMENT STORES ALL OWNED BY NEW YORKBASED MACY THE SPOKESWOMAN SAID SHE ADDED OUR POSITION IS THAT MR FARAH IS OBLIGATED TO HONOR THE TERMS OF HIS CONTRACT WITH FEDERATED 9308090130 930809 CAMBREX AGREES TO SETTLEMENT EAST RUTHERFORD NJ CAMBREX CORP AGREED TO PAY 650000 TO SETTLE A DISPUTE WITH STATE ENVIRONMENTAL REGULATORS CONCERNING EXCESSIVE SEWAGE DISCHARGES NEW JERSEY'S ENVIRONMENTAL AGENCY HAD PROPOSED A 23 MILLION FINE TO COVER THE ALLEGED INFRACTION THE CHEMICAL CONCERN WHICH DIDN'T ADMIT TO ANY WRONGDOING OR FAULT SAID IT SETTLED THE CASE IN ORDER TO AVOID MOUNTING LEGAL FEES 9308090129 930809 IRELAND'S JOBLESS RATE AT 178 LONDON IRELAND'S UNEMPLOYMENT RATE WAS UNCHANGED IN JULY AT A SEASONALLY ADJUSTED 178 THE CENTRAL STATISTICS OFFICE SAID FRIDAY THE FIGURES REFLECT THE NAMES OF PEOPLE IN IRELAND'S WORK FORCE APPEARING ON THE LIVE REGISTER A LIST OF THOSE IN RECEIPT OF UNEMPLOYMNT BENEFITS OR ASSISTANCE AS WELL AS JOBLESS WORKERS WHO ARE NOT CURRENTLY ENTITLED TO BENEFITS THE NUMBER OF PEOPLE CONSIDERED UNEMPLOYED ON THIS BASIS IN THE LATEST MONTH WAS UP 5000 FROM JUNE AND 7000 FROM A YEAR EARLIER 9308090128 930809 WHO'S NEWS BEMIS CO BEMIS CO MINNEAPOLIS WINSLOW H BUXTON 54 YEARS OLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PENTAIR INC OF ST PAUL MINN WAS NAMED A DIRECTOR OF THIS PACKAGING AND PRESSURESENSITIVE MATERIALS CONCERN INCREASING THE BOARD'S SIZE TO 14 MEMBERS 9308090127 930809 CANADIAN JOBLESS RATE RISES OTTAWA CANADA'S UNEMPLOYMENT RATE JUMPED TO A SEASONALLY ADJUSTED 116 OF THE WORK FORCE IN JULY FROM 113 IN JUNE STATISTICS CANADA SAID THE JULY FIGURE WAS THE HIGHEST UNEMPLOYMENT RATE SINCE LAST SUMMER EMPLOYMENT FELL 43000 OR 03 IN JULY FOLLOWING A STRONG 08 INCREASE IN JUNE MARK CHANDLER ASSISTANT CHIEF ECONOMIST AT ROYAL BANK OF CANADA SAID THE EMPLOYMENT REPORT WAS AN INDICATION THAT CANADA'S ECONOMIC RECOVERY REMAINS VERY WEAK BUT HE SAID THE JULY JOB LOSSES WEREN'T UNEXPECTED GIVEN THE UNUSUALLY STRONG EMPLOYMENT GAINS IN JUNE 9308090126 930809 ITT UNIT TRIMS BUYBACK PLAN NEW YORK ITT CORP SAID ITS ITT FINANCIAL CORP UNIT REDUCED ITS PREVIOUSLY ANNOUNCED OFFER TO BUY BACK CERTAIN DEBT SECURITIES TO 19 BILLION FROM 27 BILLION ITT SAID ONLY 12 DEBT ISSUES INSTEAD OF 18 WILL BE INVITED TO SELL THEIR SECURITIES TO THE COMPANY ITT A MULTINATIONAL COMPANY WITH INTERESTS IN INSURANCE HOTELS FINANCIAL SERVICES AND DEFENSE SAID THE OFFERING WAS CHANGED TO MORE CLOSELY FOCUS THE SIZE AND PRICING OF THE BUYBACK 9308090125 930809 WHO'S NEWS ACE LTD ACE LTD HAMILTON BERMUDA GLEN RENFREW 65 YEARS OLD RETIRED CHIEF EXECUTIVE OFFICER OF REUTERS HOLDINGS PLC WAS NAMED A DIRECTOR OF THIS LIABILITY INSURANCE COMPANY MR RENFREW FILLS A VACANCY ON THE 15MEMBER BOARD 9308090124 930809 COMPUTERS MOTOROLA LINKS WINDOWS NT TO ITS POWERPC BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL MOTOROLA INC IS RACING TO DEVELOP A NEW WEAPON IN ITS CAMPAIGN TO BREAK INTEL CORP'S NEARMONOPOLY IN THE MARKET FOR PERSONALCOMPUTER CHIPS MOTOROLA HAS BOUGHT THE RIGHTS TO USE MICROSOFT CORP'S MOST POWERFUL OPERATING SYSTEM WINDOWS NT AND IT IS MODIFYING THE SOFTWARE TO RUN ON ITS NEW POWERPC MICROPROCESSORS A MICROSOFT OFFICIAL CONFIRMED MOTOROLA OFFICIALS DECLINED COMMENT BUT THE COMPANY'S STRATEGY IS TO HELP CREATE PERSONAL COMPUTERS AND SERVERS THAT WILL APPEAL TO MAJOR CORPORATIONS AND ORGANIZATIONS THAT OTHERWISE PLAN TO USE COMPUTERS WITH INTEL'S MOST ADVANCED MICROPROCESSOR THE PENTIUM TO RUN WINDOWS NT A MICROPROCESSOR IS THE BRAINS OF A COMPUTER AN OPERATING SYSTEM TELLS THE COMPUTER WHAT TO DO A SERVER MANAGES THE FLOW OF DATA IN A NETWORK MOTOROLA'S POWERPC LINE IS BEING DEVELOPED IN PARTNERSHIP WITH INTERNATIONAL BUSINESS MACHINES CORP AND APPLE COMPUTER INC AND IT IS VITAL TO THE FUTURE OF ALL THREE COMPANIES THE CHIP'S BACKERS ASSERT THAT IT WILL ALLOW COMPUTERS TO RUN NEW OR REWRITTEN SOFTWARE APPLICATIONS SUCH AS SPREADSHEETS AND DATABASES AT ROUGHLY TWO TO THREE TIMES THE SPEED OF MACHINES BASED ON INTEL'S BESTSELLING MICROPROCESSOR THE 486 AND AT A LOWER COST SUCH PERFORMANCE COULD ALLOW MOTOROLA TO CAPTURE SOME OF INTEL'S SALES PERMIT IBM TO PUSH ITS OWN OS/2 OPERATING SYSTEM ON A SEXY NEW PLATFORM AND HELP BATTERED APPLE REJUVENATE ITS AGING MACINTOSH MACHINES WE ARE BULLISH ON THE POWERPC BECOMING THE MOST FORMIDABLE COMPETITOR TO THE INTEL FAMILY SAYS KEN LOWE PRINCIPAL COMPUTER ANALYST FOR THE RESEARCH FIRM DATAQUEST HE THINKS SUCCESS WILL TAKE AT LEAST THREE YEARS BUT WILL COME BECAUSE OF MOTOROLA'S EXPERTISE AS A CHIP MAKER THE HIGH VOLUME OF ORDERS PROMISED BY APPLE AND IBM AND THE ALLEGED TECHNOLOGICAL SUPERIORITY OF THE POWERPC BUT MOST COMPUTER MAKERS AND ANALYSTS SAY INTEL IS NOT ONLY TOO WELL ENTRENCHED BUT IS ALSO PRODUCING NEW MORE POWERFUL MICROPROCESSORS TOO FAST FOR MOTOROLA TO GAIN A DECISIVE EDGE THE PENTIUM CHIP NOW IN ITS INFANCY AND THE NEXTGENERATION INTEL CHIP CODENAMED THE P6 ARE EXPECTED TO ACCOUNT FOR A THIRD OF THE MARKET BY 1997 ACCORDING TO INSTAT INC ANOTHER RESEARCH FIRM INSTAT ESTIMATES THAT INTEL'S FAMILY OF CHIPS WILL CAPTURE NEARLY 90 OF THE MARKET BY 1997 UP FROM ROUGHLY 85 NOW ANYTHING CAN CHANGE IN A YEAR BUT THE WAY WE'RE LOOKING AT IT NOW NOTHING HAS COME UP THAT IS REALLY GOING TO BUCK THE TREND SAYS INSTAT ANALYST TONY MASSIMINI NONETHELESS TO FEND OFF MOTOROLA INTEL MAY HAVE TO SHARPLY CUT ITS PRICES POTENTIALLY BATTERING THE FATTEST NET PROFIT MARGINS OF ANY MAJOR CORPORATION MOTOROLA'S ODDS OF BREAKING INTEL'S LOCK ON THE MARKET ARE BEING IMPROVED BY INTEL'S LONGTIME ALLY MICROSOFT ITS NEW NT SYSTEM IS THE FIRST PORTABLE OPERATING SOFTWARE FOR PCS MEANING IT CAN RUN ON MANY DIFFERENT KINDS OF MICROPROCESSORS INCLUDING THE POWERPC MICROSOFT'S PREVIOUS OPERATING SYSTEMS DOS AND WINDOWS RUN ONLY ON INTEL CHIPS BIG CORPORATE USERS TEND TO FAVOR NT FOR FUTURE COMPUTER PURCHASES BECAUSE IT'S ADEPT AT RUNNING LARGE NETWORKS OF MACHINES RUNS PROGRAMS WRITTEN FOR THE PREVIOUS MICROSOFT OPERATING SYSTEMS AND PROMISES TO RUN NEW PROGRAMS TAILORED TO IT AT BLAZING SPEED MOTOROLA'S PLAN IS TO LEAVE THE MANUFACTURING OF THE FIRST GENERATION OF THE POWERPC A VERSION CALLED THE 601 TO IBM AT AN INITIAL ESTIMATED PRICE OF ABOUT 450 EACH THE 601 IS SUPPOSED TO OFFER ABOUT THE SAME PERFORMANCE AS INTEL'S PENTIUM AT HALF THE COST BUT MOTOROLA IS SKIPPING RIGHT TO TWO MORE ADVANCED CHIPS CALLED THE 603 AND THE 604 WHILE DECLINING TO COMMENT ON MOTOROLA'S LICENSING AGREEMENT WITH MICROSOFT PHIL POMPA MARKETING DIRECTOR FOR THE POWERPC LINE SAID THE 603 WILL HAVE THE SAME PERFORMANCE AS INTEL'S CURRENT PENTIUM MODEL AT ONEFOURTH THE PRICE THE 604 IS EXPECTED TO HAVE TWICE THE PERFORMANCE OF THE PRESENT PENTIUM AT HALF THE PRICE EVEN THE DUBIOUS MR MASSIMINI AVERS THAT THE PORTABILITY OF THE NT COMBINED WITH THE POWERPC'S CURRENT PRICEPERFORMANCE ADVANTAGE GIVES MOTOROLA A ONEYEAR WINDOW OF OPPORTUNITY HE SAYS MOTOROLA HAS TO PUSH ITS NT VERSION AND ITS CHIPS OUT WELL BEFORE INTEL INTRODUCES AN IMPROVED PENTIUM AT A PRICE WELL BELOW THE CURRENT 850 TO 900 A CHIP A DESIGN TEAM IN AUSTIN TEXAS IS RACING TO FINISH AN NT VERSION THAT WILL RUN ON THE NEW MOTOROLA CHIPS BY EARLY NEXT YEAR BUT IT'S UNCLEAR HOW LONG IT WOULD TAKE TO SHIP LARGE VOLUMES OF COMPUTERS WITH THE NEW SOFTWARE AND HARDWARE AND HOW MANY MANUFACTURERS WOULD BE INTERESTED APPLE SAYS IT WON'T HAVE MACINTOSHES RUNNING ON 603 AND 604 CHIPS UNTIL 1995 NEITHER APPLE NOR IBM WANTS TO MAKE NT MACHINES WHICH WOULD COMPETE WITH THEIR OWN PROPRIETARY OPERATING SYSTEMS IN FACT A GREAT MOTOROLA SUCCESS WITH THE NT COULD TAKE MARKET SHARE AWAY FROM ITS PARTNERS THOUGH APPLE AND IBM SAY THEY ARE WILLING TO TAKE THAT CHANCE TO FOSTER A LARGER MARKET AND GREATER SOFTWARE SUPPORT FOR THE ENTIRE POWERPC FAMILY TO WOO OTHER MANUFACTURERS MOTOROLA IS TRYING TO DEVELOP THE POWERPC SO THAT IT CAN TAKE ADVANTAGE OF MOST OF THE STANDARD HARDWARE AND SOFTWARE THAT SUPPORT INTELBASED MACHINES SUCH AS MEMORY CONTROLLERS AND INPUTOUTPUT CARDS APPLICATIONS DEVELOPERS SUCH AS LOTUS DEVELOPMENT CORP SAY THAT IT'S FAIRLY STRAIGHTFORWARD TO MODIFY NEW PROGRAMS WRITTEN FOR NT/PENTIUM TO RUN ON NT/POWERPC BUT THAT THEIR INTEREST IN DOING SO WOULD DEPEND ON DEMAND OTHER BIG COMPUTER MAKERS SUCH AS DELL COMPUTER CORP ARE TAKING A WAITANDSEE ATTITUDE GLENN HENRY DELL'S CHIEF TECHNOLOGY OFFICER SAYS WE DON'T CREATE NEW MARKETPLACES WE ONLY RESPOND TO DEMAND THAT'S WHY THE SUPPORT OF APPLE AND IBM IS SO CRUCIAL TO MOTOROLA DELL MIGHT BE MORE TEMPTED IF MACS AND IBM PCS BASED ON THE 601 BECOME RUNAWAY HITS NEXT YEAR IT MAY BE FURTHER TEMPTED BY IBM'S SOFTWARE STRATEGY FOR THE POWERPC WHICH IS TO OFFER A NEARLY UNIVERSAL OPERATING SYSTEM CALLED WORKPLACE OS THAT WOULD RUN PROGRAMS WRITTEN FOR OS/2 MACINTOSH WINDOWS AND A FOURTH POWERFUL OPERATING SYSTEM CALLED UNIX FROM THERE IT'S A SHORT STEP TO BUILDING NT MACHINES ON THE 603 AND 604 CHIPS MOTOROLA POSES A CREDIBLE THREAT MR HENRY SAYS BECAUSE CUSTOMERS ARE INTERESTED ONLY IN SOFTWARE AND PRICE PERFORMANCE NOT WHAT KIND OF MICROPROCESSOR IS IN THE BOX THAT'S WHY HOPE SPRINGS ETERNAL BECAUSE THEY CAN OFFER BETTER PRICE PERFORMANCE HE SAYS NT BRINGS EVEN MORE HOPE HE ADDS BECAUSE IT WILL ALLOW A LOT OF NEW AND OLD SOFTWARE TO RUN ON POWERPC MACHINES INTEL SAYS IT JUST WON'T ALLOW A MAJOR PRICEPERFORMANCE GAP TO ARISE PAUL OTELLINI VICE PRESIDENT OF INTEL'S MICROPROCESSOR GROUP SAYS BOTH MOTOROLA AND INTEL ABIDE BY MOORE'S LAW WHICH SAYS THAT THE PERFORMANCE OF INTEGRATED CIRCUITS DOUBLES EVERY 18 TO 24 MONTHS INTEL PLANS TO SHARPLY IMPROVE THE PERFORMANCE OF THE PENTIUM WHILE DRIVING ITS PRICE DOWN NEXT YEAR WHEN IT WILL ALSO INTRODUCE ITS NEXT GENERATION OF MICROPROCESSORS THE P6 MOST OBSERVERS BELIEVE MOTOROLA WON'T GET THE BREATHING ROOM IT NEEDS UNLESS INTEL MAKES A BAD MISTAKE AND MR OTELLINI OBSERVES THAT SCREWING UP ISN'T IN OUR STRATEGIC PLAN 9308090123 930809 SINGAPORE AIRLINES' ROUTE SINGAPORE SINGAPORE AIRLINES OR SIA WILL FLY THROUGH AMSTERDAM INSTEAD OF BRUSSELS FROM SINGAPORE TO NEW YORK STARTING NOV 2 THE AIRLINE SAID THE DECISION IS PURELY COMMERCIAL AND WAS MADE SOON AFTER THE DUTCH AUTHORITIES GAVE SIA PERMISSION TO OPERATE THROUGH AMSTERDAM THE THRICEWEEKLY SERVICE WILL ALLOW SIA TO TAP TRAFFIC FROM A LARGER TRAFFIC BASE BETWEEN AMSTERDAM AND THE US AND BETWEEN AMSTERDAM AND SOUTHEAST ASIA IT ADDED SIA WILL STILL FLY TO BRUSSELS TWICE A WEEK THROUGH ITS SINGAPOREBRUSSELSLONDON AND SINGAPOREROMEBRUSSELS SERVICES IT ALSO WILL DOUBLE ITS WEEKLY FREIGHTER SERVICES TO BRUSSELS TO FOUR AT THE END OF SEPTEMBER 9308090122 930809 CONTINENTAL AIR'S TRAFFIC RISES THE AIRLINE REPORTED REVENUE PASSENGER MILES OF 409 BILLION FOR THE MONTH UP FROM 403 BILLION FOR JULY 1992 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED INCREASED TO 67 FROM 655 A YEAR EARLIER FOR THE FIRST SEVEN MONTHS CONTINENTAL SAID IT FLEW 248 BILLION REVENUE PASSENGER MILES A SLIGHT DECREASE FROM 25 BILLION A YEAR EARLIER LOAD FACTOR FOR THE PERIOD DECREASED TO 626 FROM 637 9308090121 930809 PEPPERAND SALT AND NOW A PIN AND BONUS THAT OLD RETIREMENT ONUS OF JOBS I'D LEFT FOR LATER SHOULDN'T STAND UP IN A BOAT 9308090120 930809 WHO'S NEWS CALTON INC CALTON INC MANALAPAN NJ JOHN L PREVI 34 YEARS OLD AND DAVID J COPPOLA 33 WERE NAMED VICE PRESIDENTS OF THIS REAL ESTATE COMPANY MR PREVI WHO WAS PREVIOUSLY VICE PRESIDENT OF THE COMPANY'S CALTON HOMES INC UNIT WILL BE DIRECTOR OF PLANNING FOR CALTON MR COPPOLA WHO WAS MOST RECENTLY CALTON HOMES'S CONTROLLER WILL BECOME CONTROLLER OF CALTON 9308090119 930809 NATO TO GET AIRSTRIKE PLAN AIMED AT SERBS ALLIES ARE EXPECTED TO CLEAR STRATEGY BUT EUROPEANS STILL HAVE THEIR DOUBTS BY THOMAS E RICKS AND CARLA ANNE ROBBINS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON NATO'S MILITARY COMMITTEE TODAY WILL PRESENT TO THE ALLIES A TWOSTAGE PLAN FOR AIR STRIKES IN BOSNIA BEGINNING WITH A LIMITED STRIKE AND IF BOSNIAN SERBS FAIL TO CEASE THEIR ATTACKS A MUCH BROADER RANGE OF TARGETS LATER INCLUDING MUNITIONS DUMPS AND COMMANDANDCONTROL CENTERS AT A MEETING IN BRUSSELS THE NORTH ATLANTIC TREATY ORGANIZATION AMBASSADORS ARE EXPECTED TO APPROVE THE PLAN AS WELL AS AN UNWIELDY DUALCOMMAND STRUCTURE TO BE SHARED BY NATO AND THE UNITED NATIONS COMMANDER ON THE GROUND BUT THE EUROPEAN ALLIES CONTINUE TO EXPRESS DOUBTS ABOUT THE UTILITY OF MILITARY ACTION IN BOSNIA AND A FINAL DECISION TO LAUNCH AN AIR STRIKE WILL PROBABLY HAVE TO WAIT UNTIL A SECOND NATO MEETING ACCORDING TO US OFFICIALS TELL ME WHAT GOES ON ON THE GROUND SAID A CLINTON ADMINISTRATION OFFICIAL AND I'LL TELL YOU WHETHER WE STRIKE THE US AND ITS ALLIES HAVE AGREED THAT AIR STRIKES COULD BE USED EITHER TO BREAK THE SIEGE OF SARAJEVO OR TO PRESS BOSNIA'S SERBS TO NEGOTIATE IN GOOD FAITH IN POLITICAL NEGOTIATIONS UNDER WAY IN GENEVA BUT WHILE NEGOTIATIONS COULD DRAG ON FOR MONTHS PENTAGON OFFICIALS ARE PREDICTING THAT TIME COULD QUICKLY RUN OUT FOR SARAJEVO CONDITIONS THERE ALREADY AT SUBSISTENCE LEVEL ARE EXPECTED TO WORSEN IN THE COMING WEEKS WITHOUT MILITARY INTERVENTION THESE OFFICIALS SAID MANY OF SARAJEVO'S REMAINING 250000 INHABITANTS COULD STARVE AS WINTER SETS IN AT THE END OF OCTOBER IT'S UNCLEAR JUST WHAT EFFECT NATO HAS HAD ON BOSNIAN SERB BEHAVIOR SINCE IT AGREED AT A MARATHON MEETING LAST MONDAY TO CONSIDER AIR STRIKES SUCH ACTION WOULD BE THE FIRST OFFENSIVE MILITARY ACTION CONDUCTED BY THE ALLIANCE IN ITS 44YEAR HISTORY BOSNIAN SERB LEADER RADOVAN KARADZIC SAID THAT TWO OVERLAND ROUTES TO SARAJEVO WOULD BE OPENED TODAY BUT A UN SPOKESMAN IN SARAJEVO SAID HE HAS SEEN LITTLE EVIDENCE SO FAR THAT THE ROUTES WERE BEING OPENED THROUGHOUT THE WEEKEND NATO'S MILITARY COMMITTEE MET TO CONSIDER HOW AIR STRIKES MIGHT BE CARRIED OUT AGAINST THE FORCES BESIEGING SARAJEVO ODDLY THE TARGETS OF SUCH STRIKES HAVEN'T BEEN A POINT OF CONTROVERSY MILITARY PLANNERS HAVE TENTATIVELY SETTLED ON ARTILLERY EMPLACEMENTS TO BE FOLLOWED BY A HANDFUL OF AMMUNITION DUMPS AND SOME PARTICULARLY ACTIVE COMMAND AND CONTROL CENTERS BUT THE COMMITTEE DEBATED AT GREAT LENGTH OVER TWO OTHER ISSUES THE ROLE OF THE UN IN DECIDING TO LAUNCH STRIKES AND THE MILITARY COMMAND AND CONTROL OF THE ACTION NATO ITSELF REMAINS DEEPLY DIVIDED OVER WHETHER TO CARRY OUT THE THREAT ISSUED LAST WEEK OFFICIALS FROM SEVERAL NATIONS SAID THEY ARE PUZZLED BY THE DISCREPANCY BETWEEN THE US GOVERNMENT'S BELLIGERENT ADVOCACY OF AIR STRIKES AND ITS REFUSAL TO COMMIT US GROUND TROOPS IN ADDITION SOME DIPLOMATS ARGUE THAT THE US PROPOSAL TO CONDUCT AIR STRIKES HAS HURT THE PROGRESS OF THE GENEVA PEACE TALKS AND SOME POINT TO SERB PROMISES TO LOOSEN THE SIEGE AS EVIDENCE THAT NO FURTHER ACTION SHOULD BE CONSIDERED AT THIS TIME US OFFICIALS ADVOCATE PUTTING ASIDE THESE DIFFERENCES TO SEE WHETHER THE THREAT OF MILITARY ACTION ALTERS SERB BEHAVIOR EITHER IN BOSNIA OR AT THE NEGOTIATING TABLE DISTRUSTFUL OF THE GENEVA TALKS THE US CONTENDS THAT THE THREAT OF MILITARY ACTION MIGHT BE NECESSARY TO ENCOURAGE THE SERBS TO ADHERE TO ANY AGREEMENT REACHED IN THOSE TALKS THE PROBLEM IS TO MAKE THE SERBS RESPECT WHATEVER THEY SIGN SAID A GOVERNMENT ANALYST IN ADDITION DEFENSE DEPARTMENT OFFICIALS FEAR THAT DETERIORATING CONDITIONS IN SARAJEVO COULD MAKE THE TALKS IRRELEVANT THE PENTAGON HAS CLOSELY FOLLOWED A SERB OFFENSIVE LAUNCHED JULY 21 SOUTH OF SARAJEVO THAT HAS SEVERED LAND ROUTES LAST WEDNESDAY THE OFFENSIVE BROUGHT SERB FORCES TO THE COMMANDING HEIGHTS OF MOUNT IGMAN FROM WHICH THE CITY AND ITS AIRPORT COULD BE SHELLED DIRECTLY IF YOU CONTROL IGMAN YOU ISOLATE THE CITY SAID A PENTAGON OFFICIAL WHO SPOKE ON THE CONDITION THAT HE NOT BE NAMED THE LAST UN CONVOY TO BRING FOOD OVERLAND TO SARAJEVO ARRIVED JULY 22 SINCE THEN THE CITY HAS BEEN SUPPLIED ONLY BY AIR AND THE DAILY AIRLIFT OF 175 METRIC TONS OF FOOD WON'T BE SUFFICIENT TO SUPPORT THE POPULATION ONCE HARSH WINTER WEATHER MAKES FLYING MORE DIFFICULT AND BOOSTS CALORIC REQUIREMENTS OFFICIALS HAVE CONCLUDED THUS ONE US MILITARY OFFICER SAID MILITARY ACTION TO GET FOOD IN IS GOING TO HAVE TO BE DONE FAIRLY QUICKLY 9308090118 930809 INTERNATIONAL SINGAPORE GDP RISES 101 SINGAPORE THE SINGAPORE ECONOMY GREW AT A 101 ANNUAL RATE IN THE SECOND QUARTER AND THE GOVERNMENT RAISED ITS GROWTH FORECAST FOR THE FULL YEAR PRIME MINISTER GOH CHOK TONG SAID IN A TELEVISED SPEECH ON THE EVE OF SINGAPORE'S NATIONAL DAY MR GOH SAID REAL GROSS DOMESTIC PRODUCT ROSE 101 IN THE QUARTER AND 87 IN THE FIRST HALF FROM A YEAR EARLIER FOR THE YEAR THE GOVERNMENT PROJECTS THAT WE WILL ACHIEVE 75 TO 8 GROWTH MR GOH SAID THE ECONOMY GREW 58 IN 1992 REAL GROSS DOMESTIC PRODUCT IS A COUNTRY'S INFLATIONADJUSTED OUTPUT OF GOODS AND SERVICES LESS FOREIGN INCOME 9308090117 930809 SUMMIT HEALTH SEES FOURTHQUARTER NET OF 46 MILLION BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL BURBANK CALIF SUMMIT HEALTH LTD EXPECTS TO REPORT NET INCOME OF ABOUT 46 MILLION OR 12 TO 14 CENTS A SHARE FOR THE FISCAL FOURTH QUARTER ENDED JUNE 30 SAID DONALD J AMARAL PRESIDENT AND CHIEF EXECUTIVE OFFICER THE RESULTS COMPARE WITH NET OF 14 MILLION OR FOUR CENTS A SHARE A YEAR EARLIER THE 1992 EARNINGS WERE DEPRESSED BY A ONETIME 18 MILLION CHARGE OR SIX CENTS A SHARE THAT WAS RELATED TO BOND COSTS REVENUE FOR THE 1993 QUARTER ROSE 1 TO ABOUT 126 MILLION FROM 125 MILLION A YEAR AGO MR AMARAL SAID THE COMPANY RESTATED 1992 REVENUE TO REFLECT AN ACCOUNTING ERROR THE OWNER AND OPERATOR OF HOSPITALS NURSING HOMES AND RETIREMENT CENTERS HAS IMPROVED COST CONTROLS AND RAISED MARGINS SIGNIFICANTLY THE EXECUTIVE SAID THERE'S BEEN A SLOWING OF HOSPITAL BUSINESS IN CALIFORNIA AND A HIGHER PERCENTAGE OF MEDICAID BUSINESS SYSTEMWIDE MR AMARAL SAID ADDING THAT SUMMIT HEALTH HAD ADJUSTED ITS OPERATING EXPENSES ACCORDINGLY THE COMPANY CUT LABOR COSTS BY 25 MILLION AND PRETAX EARNINGS FROM OPERATIONS ROSE TO 87 MILLION FROM 57 MILLION IN THE PRIOR YEAR MR AMARAL ADDED THAT THE COMPANY'S GOAL IS TO BOOST MARGINS 1 AND RACK UP A 10 GROWTH IN REVENUE BY THE END OF FISCAL 1994 FOR THE YEAR SUMMIT EXPECTS TO REPORT NET INCOME OF AS MUCH AS 186 MILLION OR 54 TO 56 CENTS A SHARE COMPARED WITH 1992 RESULTS OF 112 MILLION OR 34 CENTS A SHARE AFTER THE ONETIME CHARGE REVENUE IS EXPECTED TO CLIMB 7 TO AROUND 510 MILLION FROM 476 MILLION IN 1992 WE'RE FOCUSING ON OUR MANAGEDCARE BUSINESS AND AMBULATORY OUTPATIENT BUSINESS AND HAVE INCREASED ENROLLMENTS IN OUR ARIZONA HEALTHMAINTENANCE ORGANIZATION MR AMARAL SAID THE THREEYEAROLD OPERATION FINISHED THE YEAR AT 18500 ENROLLEES UP FROM 14000 LAST YEAR MUCH OF SUMMIT'S GROWTH HAS STEMMED FROM THE COMPANY'S AGGRESSIVE PURSUIT OF OUTPATIENT CARE AS MORE PATIENTS SHORTEN THEIR HOSPITAL STAYS AND INSURERS INCREASINGLY PUSH FOR EARLIER HOSPITAL DISCHARGES TO KEEP COSTS DOWN FOR THE YEAR SUMMIT PATIENTS SHORTENED THEIR STAY TO AN AVERAGE OF 44 DAYS DOWN FROM 46 LAST YEAR THE COMPANY'S OUTPATIENT BUSINESS HAS GROWN TO MAKE UP AS MUCH AS 36 OF TOTAL REVENUE UP FROM 34 A YEAR AGO AND MR AMARAL EXPECTS IT TO GO NORTH OF 40 BY THE END OF THE FISCAL YEAR THE EXECUTIVE ANTICIPATES THE GROWTH TO COME FROM SUMMIT'S AMBULATORY OUTPATIENT BUSINESS WHERE HE EXPECTS A REVENUE JUMP TO OVER 10 MILLION FROM THE CURRENT 18 MILLION BY THE END OF FISCAL 1995 9308090116 930809 FIVE GM PLANTS SHUT FOR MODEL CHANGES DETROIT GENERAL MOTORS CORP SAID IT STILL HAS FOUR CAR AND ONE TRUCK ASSEMBLY PLANTS CLOSED FOR MODEL CHANGEOVER EVEN THOUGH MOST DOMESTIC AUTO MAKERS ARE ALREADY BUILDING VEHICLES FOR THE NEW MODEL YEAR ALTOGETHER THE AUTO MAKERS PLANNED TO BUILD 178768 CARS AND TRUCKS LAST WEEK UP 357 FROM 131723 VEHICLES THE PREVIOUS WEEK AND UP 3 FROM 173502 VEHICLES BUILT IN THE YEAREARLIER PERIOD FORD MOTOR CO SAID IT WORKED DAILY OVERTIME LAST WEEK AT ITS CAR ASSEMBLY PLANTS IN CHICAGO AND LORAIN OHIO AND AT MOST TRUCK ASSEMBLY PLANTS CHRYSLER CORP SAID IT PLANNED SATURDAY OVERTIME AT ASSEMBLY PLANTS IN ST LOUIS DETROIT AND WINDSOR ONT GM DIDN'T REPORT ANY SCHEDULED OVERTIME LAST WEEK 9308090114 930809 WHO'S NEWS HOME OFFICE REFERENCE LABORATORY INC HOME OFFICE REFERENCE LABORATORY INC LENEXA KAN W THOMAS GRANT CHAIRMAN OF THIS LABORATORY TESTING BUSINESS RESIGNED MR GRANT 43 YEARS OLD SAID HE LEFT TO DEVOTE MORE TIME TO SEAFIELD CAPITAL CORP KANSAS CITY MO WHERE HE IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR GRANT WAS SUCCEEDED AT HOME OFFICE REFERENCE LABORATORY BY BERT H HOOD 48 AN INDUSTRY CONSULTANT AND FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF UNILAB CORP 9308090113 930809 BIG BOARD NET INCOME EDGED UP IN QUARTER NEW YORK THE NEW YORK STOCK EXCHANGE SAID SECONDQUARTER NET INCOME EDGED UP TO 162 MILLION FROM 16 MILLION A YEAR EARLIER IN THE QUARTER REVENUE ROSE 21 TO 1094 MILLION FROM 1072 MILLION IN THE FIRST HALF NET ROSE 17 TO 334 MILLION FROM 286 MILLION REVENUE ROSE 16 TO 2197 MILLION FROM 2163 MILLION A YEAR EARLIER EXPENSES FELL 3 TO 1597 MILLION FROM 165 MILLION THE BIG BOARD'S AVERAGE DAILY VOLUME REACHED A RECORD 2642 MILLION SHARES IN THE FIRST HALF UP FROM 2057 MILLION SHARES A YEAR EARLIER NEW LISTINGS INCREASED TO 139 FROM 118 IN THE FIRST SIX MONTHS OF 1992 9308090112 930809 UNITED WAY POSTS DECLINE OF 41 IN FUND RAISING BY PAMELA SEBASTIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE UNITED WAY OF AMERICA REPORTED A 41 DROP IN CONTRIBUTIONS TO ITS 199293 FUNDRAISING CAMPAIGN A DECLINE THAT MANY OF ITS RECIPIENT CHARITIES HAVE BEEN BRACING FOR BY BEEFING UP THEIR OWN FUND RAISING THE UNITED WAY OF AMERICA SAID DONORS CONTRIBUTED 304 BILLION TO LOCAL UNITED WAY CAMPAIGNS DOWN FROM 317 BILLION A YEAR EARLIERMARKING THE FIRST DOWN YEAR SINCE WORLD WAR II DRIVES BEGIN IN THE FALL AND SOME CONTINUE INTO THE NEXT YEAR THE DROP WHICH CAME ON THE HEELS OF A POOR ECONOMY AND A SPENDING SCANDAL LAST YEAR SURROUNDING UNITED WAY'S PAST PRESIDENT HAS SENT AGENCIES SCRAMBLING TO MAKE UP THE SHORTFALL THE AMERICAN RED CROSS FOR INSTANCE WILL FOCUS ON 100 STRATEGIC CHAPTERS THIS YEAR AS IT EMPHASIZES ITS OWN FUND RAISING THROUGH EFFORTS SUCH AS FOCUSING ON MAJOR GIFTS SAYS JOHN WM THOMAS HEAD OF DEVELOPMENT HE ADDED THAT A 41 DROP IN THE OVERALL UNITED WAY CAMPAIGN TRANSLATES INTO ABOUT AN 82 DROP IN FUNDING TO THE AVERAGE RED CROSS CHAPTER ABOUT 50 OF ALL FUNDS GIVEN TO RED CROSS CHAPTERS COME FROM LOCAL UNITED WAYS AND CATHOLIC CHARITIES OF THE ARCHDIOCESE OF CHICAGO THE LARGEST OF THE CATHOLIC CHARITIES IN THE US IS ALSO STEPPING UP FUNDRAISING TO OFFSET AN 11 MILLION DROP IN ITS ALLOCATION FROM ITS LOCAL UNITED WAY AN 183 DECLINE FROM A YEAR EARLIER IT REALLY PUT A BIG HOLE IN OUR BUDGET SAID FATHER EDWIN CONROY THE GROUP'S ADMINISTRATOR FATHER CONROY SAYS THAT AMONG OTHER INTENSIFIED FUNDRAISING PLANS THE CHICAGO GROUP IS GETTING TOGETHER A PROGRAM TO GO TO CEOS DIRECTLY FOR PERSONAL DONATIONS UNITED WAY CAMPAIGNS IN THE WEST DID THE WORST AND THOSE IN THE SOUTHEAST DID THE BEST REFLECTING THE LOCAL ECONOMIES THE STATE OF THE ECONOMY IS THE NO 1 FACTOR IN OVERALL GIVING SAID ELAINE CHAO PRESIDENT OF UNITED WAY OF AMERICA CORPORATE DOWNSIZING HAS DISPROPORTIONATELY AFFECTED UNITED WAY FUND RAISING COMPARED WITH OTHER CHARITIES BECAUSE WE ARE SO ROOTED IN THE CORPORATE WORKPLACE SHE ADDED IN AN INTERVIEW CALIFORNIA WAS NOTABLY HARDHIT AS A RESULT OF SCALEBACKS IN THE AEROSPACE AND DEFENSE INDUSTRIES THE SAN FRANCISCO UNITED WAY HAD AN 85 DROP IN CONTRIBUTIONS AND THE SACRAMENTO UNITED WAY HAD A 106 DECLINE FLORIDA CAMPAIGNS WERE AMONG THE BEST THE MIAMI UNITED WAY CAMPAIGN ROSE 7 AND THE ORLANDO UNITED WAY EFFORT CLIMBED 103 BUT THE CUTS IN ALLOCATIONS MADE BY LOCAL UNITED WAYS TO RECIPIENTS OFTEN DROPPED MORE SHARPLY THAN THE DECLINE IN GIFTS THEY RECEIVED THE SAN FRANCISCO UNITED WAY FOR INSTANCE IS CUTTING ITS ALLOCATIONS TO SOME 350 CHARITIES BY AN AVERAGE OF 40 MS CHAO SAID PART OF THE REASON FOR THE LARGER DROP IN ALLOCATIONS IS THAT MORE DONORS ARE EARMARKING THEIR GIFTS FOR SPECIFIC LOCAL GROUPS THEREBY LESSENING THE GENERAL POOL OF FUNDS AVAILABLE FOR THE LOCAL UNITED WAY TO ALLOCATE TO ITS TRADITIONAL BENEFICIARIES SUCH AS LOCAL CHAPTERS OF THE RED CROSS SALVATION ARMY LUTHERAN SERVICES AND OTHER GROUPS 9308090110 930806 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 9308090109 930809 FINANCING BUSINESS WHEELINGPITTSBURGH CORP WHEELINGPITTSBURGH CORP WHEELING W VA HAS TERMINATED ITS CONSENT SOLICITATION REGARDING ITS 12 1/4 FIRST MORTGAGE NOTES DUE 2000 THE STEEL COMPANY SAID IT HADN'T RECEIVED THE REQUISITE CONSENT FROM HOLDERS OF A MAJORITY OF THE 175 MILLION PRINCIPAL AMOUNT OUTSTANDING OF THE NOTES PREVIOUSLY THE COMPANY AGREED TO REVISE CERTAIN TERMS OF THE CONSENT SOLICITATION INCLUDING INCREASING THE PAYMENT TO 2250 FROM 1500 PER 1000 PRINCIPAL AMOUNT TO NOTEHOLDERS 9308090108 930809 WHO'S NEWS CB BANCSHARES INC CB BANCSHARES INC HONOLULU JAMES M KAMO WAS ELECTED TO THE BOARD OF THIS BANK HOLDING COMPANY MR KAMO 72 YEARS OLD SUCCEEDS THE LATE ROBERT M KAYA 9308090107 930809 WHO'S NEWS CHOCK FULL O' NUTS CHAIRMAN AND CEO BRESLIN QUITS POSTS NEW YORK CHOCK FULL O' NUTS CORP SAID JOSEPH BRESLIN ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER RESIGNED IN ORDER TO PURSUE OTHER INTERESTS MR BRESLIN 47 YEARS OLD WHO HAD BEEN WITH CHOCK FULL O' NUTS SINCE 1979 STEPPED DOWN AFTER JUST ONE YEAR AS THE COMPANY'S TOP OFFICER THE COMPANY SAID MARVIN HAAS CHIEF OPERATING OFFICER WILL SUCCEED MR BRESLIN AS CEO THE COMPANY DIDN'T IMMEDIATELY NAME A NEW CHAIRMAN MR BRESLIN COULDN'T BE REACHED FOR COMMENT THE COMPANY SAID ITS SEVERANCE PACKAGE WITH MR BRESLIN WILL RESULT IN A 525000 OR FIVE CENTASHARE AFTERTAX CHARGE IN THE FISCAL FOURTH QUARTER ENDED JULY 31 IN THE YEAREARLIER PERIOD IT HAD A LOSS OF 49 MILLION OR 50 CENTS A SHARE THE LOSS INCLUDED A 36 MILLION OR 37 CENTASHARE RESTRUCTURING CHARGE DURING HIS TENURE MR BRESLIN OVERSAW A CORPORATE RESTRUCTURING THAT CLOSED ONE OF THE COMPANY'S EIGHT PLANTS HE ALSO PRESIDED OVER THE SALE OF THE COMPANY'S JIMBO'S JUMBOS INC PEANUT UNIT FOR 33 MILLION IN LATE 1992 HE DIRECTED THE ACQUISITION OF NESTLE SA'S CAIN'S COFFEE CO UNIT FOR 52 MILLION MR HAAS 51 SAID HE WAS SOMEWHAT SURPRISED BY HIS APPOINTMENT AT A BOARD MEETING THURSDAY HIS IMMEDIATE PLANS DOVETAIL WITH MR BRESLIN'S STRATEGY OF ACQUISITIONS IN THE COFFEE MARKET BUT HE PLANS TO MAKE SOME THER CHANGES 9308090106 930809 GROUPE BSN'S BUYOUT OF JOINT VENTURE SIMPLIFIES FOOD MAKER'S RECIPE IN ASIA BY G PIERRE GOAD STAFF REPORTER OF THE WALL STREET JOURNAL FRENCH FOOD GIANT GROUPE BSN SA IS RELIEVED AND INDUSTRY OBSERVERS ARE FULL OF PRAISE SINCE BSN PUT AN END TO 18 MONTHS OF SQUABBLING BY BUYING OUT ITS PARTNER IN AN ASIAN JOINT VENTURE FULL CONTROL OF THE BRITANNIA COMPANIES A COLLECTION OF BISCUIT AND SNACK CONCERNS GIVES BSN'S ASIAN EXPANSION PLAN A BIG BOOST BUT THE BREAKUP ALSO HIGHLIGHTS A PERILOUS FEATURE OF JOINT VENTURES WHICH ARE A POPULAR BUSINESS STRATEGY IN ASIA PARTNERS SIMPLY MIGHT NOT GET ALONG BSN RECENTLY ANNOUNCED ACQUISITION OF THE 50 IT DIDN'T ALREADY OWN OF CLOSELY HELD BRITANNIA BRANDS HOLDINGS PTE LTD OF SINGAPORE AS WELL AS THE OTHER HALF OF A CONTROLLING 432 INTEREST IN LISTED INDIAN BISCUIT MAKER BRITANNIA INDUSTRIES LTD BSN ACQUIRED BOTH STAKES FOR 120 MILLION FROM SINGAPOREBASED INDIAN BUSINESSMAN RAJAN PILLAI AND A GROUP OF INVESTORS BSN ALSO ASSUMED 100 MILLION OF DEBT BSN HASN'T HAD A TERRIBLY SIGNIFICANT PRESENCE IN THE REGION THIS LOOKS TO ME LIKE A QUANTUM LEAP IN THEIR MARKET POSITION SAID GEORGE BAEDER MANAGING DIRECTOR OF PACRIM A HONG KONG CONSULTING FIRM IT SIGNIFICANTLY RAISES THEIR PROFILE HE SAID AND IT PROVIDES NOT JUST MANUFACTURING BUT DISTRIBUTION IN WELLESTABLISHED BRANDS IN THE REGION ON WHICH THEY CAN THEN PIGGYBACK THEIR OWN BRANDS THE BRITANNIA COMPANIES POSTED COMBINED 1992 SALES OF 380 MILLION BSN SAID ADDING THAT BRITANNIA INDUSTRIES IS THE LEADING BISCUIT MAKER IN INDIA WITH A 37 SHARE OF THE MARKET BRITANNIA BRANDS MEANWHILE CONSISTS OF UNITS IN SINGAPORE MALAYSIA HONG KONG AND NEW ZEALAND THAT MAKE AND DISTRIBUTE A RANGE OF BISCUITS SNACKS NUTS AND OTHER PRODUCTS ALONG WITH ITS OWN BRANDS THE BRITANNIA GROUP ALSO MAKES PRODUCTS UNDER LICENSE INCLUDING PLANTERS NUTS AN RJR NABISCO HOLDINGS CORP BRAND ASIA ACCOUNTED FOR LESS THAN 5 OF BSN'S 1992 TOTAL SALES OF 708 BILLION FRENCH FRANCS 119 BILLION HOWEVER BSN VICE PRESIDENT YANNICK VIVAREL SAID THAT BSN SALES IN ASIA REACHED THREE BILLION FRANCS IN 1992 UP SHARPLY FROM 200 MILLION FRANCS OR SO WHEN THE COMPANY CREATED ITS ASIANPACIFIC DIVISION A FEW YEARS AGO MR VIVAREL SAID BSN AIMS TO INCREASE ITS ANNUAL SALES IN ASIA TO 1 BILLION WITHIN TWO YEARS THE BRITANNIA GROUP IS A KEY PART OF THAT GROWTH PLAN NOW THAT BSN HAS FULL CONTROL OF BRITANNIA WE HAVE TO REALLY APPLY THE BSN MARKETING STRATEGY IN TERMS OF BRANDING AND SALES MR VIVAREL SAID THAT STRATEGY INCLUDES PUTTING MORE EMPHASIS ON BRITANNIA'S STRONG EXISTING BRANDS WE DEFINITELY WANT TO BUILD ON THAT HE SAID I THINK IT IS THE BEST ASSET OF THE BRITANNIA GROUP BSN AND MR PILLAI A FORMER RJR NABISCO EXECUTIVE TEAMED UP IN 1989 THE TWO PURCHASED THE BRITANNIA BUSINESSES FROM RJR NABISCO MR PILLAI WITH BACKERS INCLUDING ROSS JOHNSON FORMER RJR NABISCO CHAIRMAN AND INVESTORS ASSOCIATED WITH MR JOHNSON STARTING IN EARLY 1992 RELATIONS BETWEEN MR PILLAI AND BSN DETERIORATED SHARPLY AND THE PARTNERS ENDED UP IN COURT AT THE SAME TIME MR PILLAI WAS HAVING TROUBLE WITH MR JOHNSON AND HIS ASSOCIATES WHO WANTED MR PILLAI TO BUY THEM OUT THAT FIGHT ALSO ENDED UP IN COURT AS PART OF BSN'S ACQUISITION ALL REMAINING CIVIL COURT ACTIONS WILL BE WITHDRAWN MR PILLAI HOWEVER STILL FACES CRIMINAL CHARGES IN SINGAPORE OF BREACH OF TRUST AND OF MAKING ILLEGAL INTERCOMPANY LOANS IT'S VERY DIFFICULT TO SAY WHAT OUTCOME THAT WILL TAKE HE SAID ALTHOUGH THE CHARGES HE FACES ARE BASED ON COMPLAINTS MADE BY HIS FORMER PARTNER AND HIS BACKERS THE CHARGES THEMSELVES WERE BROUGHT BY THE SINGAPORE GOVERNMENT BSN'S ACQUISITION ENDS MR PILLAI'S REIGN AS BISCUIT KING OF SOUTHEAST ASIA A TITLE BESTOWED UPON HIM BY THE SINGAPORE PRESS IN A GLOWING PROFILE LAST YEAR SINGAPORE'S SUNDAY TIMES SAID MR PILLAI SPENT MUCH OF HIS TIME IN A CORPORATE JET AND THAT HE DRESSED IN ITALIAN DESIGNER CLOTHES AND HAD HIS OWN TABLE AT A RESTAURANT IN THE POSH SHANGRILA HOTEL WHEN HE LEAVES THE HOTEL TO GET TO HIS BROWN MERCEDES FOUR HOTEL EMPLOYEES WALK WITH HIM OPENING DOORS WITH A FLOURISH THE NEWSPAPER SAID AS HE TIPS EACH OF THEM FROM A FAT WAD MR PILLAI 45 YEARS OLD SAID HE MADE A PROFIT ON THE BRITANNIA DEAL EXPLAINING THAT HE AND HIS BACKERS PUT UP 38 MILLION IN EQUITY FOR THEIR STAKE IN THE GROUP AND ARE GETTING 76 MILLION FROM BSN THE REMAINING 44 MILLION THAT BSN PAID IN ITS BUYOUT WENT TO A SEPARATE GROUP OF INSTITUTIONAL INVESTORS SALLY D GOLL CONTRIBUTED TO THIS ARTICLE 9308090105 930809 FINANCING BUSINESS NATIONAL RECORD MART INC NATIONAL RECORD MART INC PITTSBURGH ANNOUNCED AN INITIAL PUBLIC OFFERING OF 17 MILLION COMMON SHARES AT 750 A SHARE OF THE 17 MILLION SHARES 200000 WERE OFFERED BY SELLING SHAREHOLDERS THE BALANCE WAS SOLD BY THE COMPANY COUNDERWRITERS WERE LADENBURG THALMANN & CO AND ADVEST INC PROCEEDS WILL GO TO FINANCE THE OPENING OF NEW STORES REPAY DEBTS AND INCREASE STORE INVENTORY THE RETAILER OF MUSIC AND OTHER HOMEENTERTAINMENT PRODUCTS OPERATES 99 STORES IN 11 STATES IN 1986 THE COMPANY WAS ACQUIRED BY AN INVESTOR GROUP HEADED BY WILLIAM A TEITELBAUM NOW CHAIRMAN AND PRESIDENT 9308090104 930809 FUND IS SOUGHT TO COVER INJURED SCHOOL ATHLETES PROVIDENCE RI RHODE ISLAND INSURANCE REGULATORS ARE TRYING TO PUT TOGETHER A FUND TO PAY BENEFITS FOR INJURED FORMER HIGH SCHOOL ATHLETES LEFT WITHOUT COVERAGE AFTER THE COLLAPSE OF A COMPANY CONTROLLED BY DOUG RUEDLINGER EARL OSTROFF RHODE ISLAND SPECIAL DEPUTY LIQUIDATOR SAID OFFICIALS IN THE INSURANCE DEPARTMENT ARE ASKING INSURANCE COMPANIES AND ATHLETICEQUIPMENT MANUFACTURERS TO CONTRIBUTE MR OSTROFF ESTIMATED THAT IT WILL TAKE 7 MILLION TO 10 MILLION TO BUY ANNUITIES TO PAY CLAIMS TOTALING SOME 20 MILLION SOME 160 FORMER HIGH SCHOOL ATHLETES WERE LEFT WITHOUT MEDICAL CARE AFTER RHODE ISLAND OFFICIALS LAST YEAR SEIZED UNITED INTERNATIONAL INSURANCE CO WHICH WAS OWNED BY MR RUEDLINGER WHO WAS THE SUBJECT OF A PAGE ONE STORY IN THE WALL STREET JOURNAL IN JUNE UNITED PROVIDED COVERAGE FOR 85 OF THE NATION'S HIGH SCHOOLS AMONG OTHER ALLEGATIONS RHODE ISLAND REGULATORS CHARGED THAT MR RUEDLINGER SHIFTED ASSETS FROM UNITED TO OTHER FAILING COMPANIES HE CONTROLLED MR RUEDLINGER BLAMES HIS COMPANIES' FINANCIAL PROBLEMS ON INEPT MANAGERS AND THE CANCELLATION OF AN AGREEMENT THAT GENERATED THE BULK OF HIS REVENUE WITH AN UNRELATED UNDERWRITER ALL AMERICAN LIFE INSURANCE CO A UNIT OF USLIFE CORP 9308090103 930809 ENVIRONMENT BY ROSE GUTFELD CHEMICAL MANUFACTURERS ARE ABANDONING THE PRODUCTION OF KEY PESTICIDES AND FARMERS FEAR THEY WILL HAVE TO TURN TO HEAVIER DOSES OF ALTERNATIVES THAT ARE LESS EFFECTIVE AND MAY BE LESS SAFE UNDER A 1988 LAW PESTICIDE PRODUCERS ARE REQUIRED BY 1997 TO REREGISTER ALL PESTICIDES THAT WERE REGISTERED WITH THE ENVIRONMENTAL PROTECTION AGENCY BEFORE 1984 BUT CHEMICAL COMPANIES HAVE DECIDED AGAINST SEEKING REREGISTRATION OF CERTAIN MINORCROP PRODUCTS WITH LOWER SALES POTENTIAL RATHER THAN CONDUCTING THE COSTLY HEALTH AND EXPOSURE TESTS REQUIRED BY THE EPA DESPITE THEIR CLASSIFICATION THE CHEMICALS ARE USED ON A RANGE OF CROPS FROM APPLES TO SWEET CORN TO TOMATOES GROWERS OF THOSE CROPS SAY THEY MAY HAVE TO RELY ON A SHRINKING ARRAY OF LESSEFFECTIVE PESTICIDES BOOSTING DOSES AS PESTS BECOME MORE RESISTANT IN SOME CASES THERE ARE NO ALTERNATIVES SAYS THE AMERICAN FARM BUREAU FEDERATION ITS PRESIDENT DEAN KLECKNER SAYS CONSUMERS MAY FACE FEWER AND POORERQUALITY FRUITS AND VEGETABLES BUT RICHARD WILES DIRECTOR OF THE AGRICULTURALPOLLUTION PREVENTION PROJECT AT THE ENVIRONMENTAL WORKING GROUP PLAYS DOWN SUCH CONCERNS PREDICTING THAT FEWER PESTICIDES WILL LIKELY BE LOST THAN THE FARMERS EXPECT STILL THE EPA AND THE AGRICULTURE DEPARTMENT ARE PROVIDING ASSISTANCE TO GROWER GROUPS SEEKING TO WIN SUPPORT FOR VARIOUS MINORCROP PESTICIDES AND PENDING LEGISLATION WOULD STREAMLINE THE REGULATIONS AND PROVIDE INCENTIVES FOR THE INDUSTRY TO CONTINUE MAKING THE PESTICIDES AMONG OTHER PROVISIONS THE POTENTIAL LOSS OF THE MORE EFFECTIVE CHEMICALS COULD HINDER THE CLINTON ADMINISTRATION FROM MEETING ITS PLEDGE TO CUT PESTICIDE USE AND COMES IN THE WAKE OF A NATIONAL ACADEMY OF SCIENCES REPORT THAT KIDS MAY BE GETTING UNSAFE AMOUNTS OF PESTICIDES IN THEIR DIETS SUBURBAN SPRAWL AND RAPID POPULATION GROWTH ARE RELENTLESSLY THREATENING FARMLAND A CONSERVATION GROUP SAYS THE NONPROFIT AMERICAN FARMLAND TRUST RECENTLY RELEASED A LIST OF THE 12 AGRICULTURAL REGIONS IN THE US MOST THREATENED BY POPULATION GROWTH AND URBAN SPREAD ALL ARE IN OR ADJACENT TO METROPOLITAN STATISTICAL AREAS CALIFORNIA'S CENTRAL VALLEY AND SOUTH FLORIDA TOP THE LIST WHILE THE HUDSON RIVER AND LAKE CHAMPLAIN AREA OF NEW YORK AND VERMONT RANKS 12TH COLLECTIVELY THE 12 REGIONS REPRESENT 5 OF US FARMLAND BUT ACCOUNT FOR 17 OF AGRICULTURAL SALES 67 OF FRUIT PRODUCTION AND 55 OF VEGETABLE OUTPUT POPULATION GREW 21 IN THESE REGIONS DURING THE 1980S TWICE THE AVERAGE NATIONAL RATE BESIDES ENCROACHING ON THE AGRICULTURE BASE THE POPULATION PUSH INTO FARMLAND INCREASES POLLUTION AS TRAFFIC RISES IT ALSO FORCES FARMERS INTO MORE MARGINAL LAND WHERE ADDITIONAL FERTILIZER PESTICIDES AND IRRIGATION ARE REQUIRED THE TRUST CONTENDS THE GROUP BLAMES FEDERAL AND STATE POLICY MAKERS FOR ENCOURAGING SPRAWL BY BUILDING AIRPORTS AND ROADS ON PRODUCTIVE LAND AND URGES THE FEDERAL GOVERNMENT TO MAKE THE PROTECTION OF FARMLAND A GOAL ON A PAR WITH SOIL CONSERVATION AND WATER QUALITY THE TRUST ALSO WOULD ELIMINATE TAX INCENTIVES FOR DEVELOPMENT IN IMPORTANT AGRICULTURAL AREAS AT THE SAME TIME THE GROUP POINTS TO AREAS THAT ARE SUCCESSFULLY PRESERVING FARMS MONTGOMERY COUNTY MD CREATED A 90000ACRE AGRICULTURE RESERVE THAT'S ZONED TO PERMIT ONLY ONE BUILDING EVERY 25 ACRES WHAT'S MORE BUSINESSES THAT WANT TO BUILD ADDITIONAL STRUCTURES IN ALREADY DEVELOPED AREAS OUTSIDE THE RESERVE BUY SOCALLED DEVELOPMENT RIGHTS FROM FARMERS IN THE RESERVE THIS ALLOWS PLANNERS TO FUNNEL GROWTH TO AREAS THAT CAN ACCOMMODATE IT AND HELPS OFFSET ANY LOSS OF PROPERTY VALUES FOR FARMERS SUFFOLK COUNTY NY PURCHASES DEVELOPMENT RIGHTS FROM FARMERS AND THE STATE OFFERS TAX BREAKS TO GROUPS OF FARMERS THAT CREATE AGRICULTURAL DISTRICTS WHERE DEVELOPMENT IS BARRED FOR EIGHT YEARS MILWAUKEE TAKES AIM AT SEWAGE AND WATER POLLUTION WITH A 22 BILLION COMPUTERCONTROLLED TUNNEL SYSTEM THE CITY SAYS ITS NEWLY CONSTRUCTED 17 MILES OF CAVERNOUS TUNNELS LYING 300 FEET BENEATH STREETS HOMES AND BUSINESSES REPRESENT THE WAVE OF THE FUTURE FOR HELPING US CITIES DEAL WITH WATER POLLUTION OFFICIALS SAY THAT ALMOST HALF OF THE SYSTEM WHICH WILL BE FULLY OPERATIONAL THIS FALL WAS FINANCED BY STATE AND FEDERAL GRANTS BUILDING TUNNELS HAS BECOME A LEADING THOUGH EXPENSIVE ANTIPOLLUTION OPTION FOR OLDER CITIES THAT HAVE TO DEAL WITH COMBINED STORM AND SANITATION SEWERS THAT OVERFLOW DURING HEAVY RAINFALLS SIMILAR NEW SYSTEMS HAVE BEEN COMPLETED OR ARE BEING PLANNED IN CHICAGO TOLEDO OHIO AND ROCHESTER NY MILWAUKEE'S AIM IS TO REDUCE BY MORE THAN 95 THE DILUTED SEWAGE THAT OVERFLOWS ITS CURRENT SYSTEM AND POURS INTO THE AREA'S THREE MAJOR RIVERS AND LAKE MICHIGAN 60 TIMES A YEAR DURING PERIODS OF HEAVY RAINS OR SNOW MELT THESE OVERFLOWS WILL NOW BE DIVERTED INTO THE DEEP TUNNEL SYSTEM AND HELD THERE UNTIL THE SYSTEM'S COMPUTER SYSTEMS SIGNAL THAT IT'S TIME TO PUMP THE STUFF INTO TREATMENT FACILITIES TO PREPARE IT FOR DISCHARGE INTO LAKE MICHIGAN FLORIDA PANTHERS HOCKEYTEAM OWNER WAYNE HUIZENGA SEEKS PUBLIC AND CORPORATE SUPPORT FOR A PANTHERS SAVES PROGRAM UNDER WHICH A DONATION WOULD BE MADE TO PROJECTS THAT AID THE ENDANGERED FLORIDA PANTHER EVERY TIME A GOALIE ON THE NATIONAL HOCKEY LEAGUE EXPANSION TEAM MAKES A SAVE TWO DECADES AFTER BEING BANNED THE PESTICIDE DDT IS STILL WIDELY DISPERSED IN FARM SOILS STREAMS AND BOTTOM FISH OF THE YAKIMA RIVER BASIN IN WASHINGTON THE US GEOLOGICAL SURVEY FINDS A HOUSEPASSED BILL WOULD PROVIDE 2 MILLION FOR THE PURCHASE OF LAND FOR THE LAKE WALES RIDGE NATIONAL WILDLIFE REFUGE IN FLORIDA SPONSORS SAY IT WOULD BE THE FIRST REFUGE FOR THE PRESERVATION OF ENDANGERED PLANTS 9308090102 930809 YOUR MONEY MATTERS TAX BILL SWEETENS RULES FOR GIVING APPRECIATED ASSETS BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL WHILE GENEROSITY MAY BE ITS OWN REWARD A PROVISION IN THE NEW TAX LAW CAN MAKE IT EVEN MORE FINANCIALLY WORTHWHILE AT A TIME WHEN HIGHER TAX RATES FOR UPPERINCOME AMERICANS MAKE DEDUCTIONS MUCH MORE VALUABLE THE PROVISION PROVIDES A POWERFUL INCENTIVE TO GIVE CHARITABLE ORGANIZATIONS MORE STOCKS BONDS ARTWORKS COLLECTIBLES REAL ESTATE AND OTHER PROPERTY WHOSE VALUE HAS INCREASED SINCE IT WAS ACQUIRED IN ESSENCE THE NEW LAW ALLOWS ALL DONORS TO DEDUCT A GIFT'S FAIR MARKET VALUE RATHER THAN MERELY ITS COST OR OTHER BASIS WITHOUT HAVING TO WORRY ABOUT A COMPLEX PROVISION CALLED THE ALTERNATIVE MINIMUM TAX OR AMT UNDER THE OLD LAW MANY UPPERINCOME DONORS AFFECTED BY THE AMT EFFECTIVELY WERE ALLOWED TO DEDUCT ONLY THE COST OF CERTAIN GIFTS SUCH AS ARTWORK AND COLLECTIBLES LAWYERS SAY THAT PROVISION HAD A CHILLING EFFECT ON CONTRIBUTIONS DONORS NEED TO BE CAREFUL BECAUSE SOME OF THE RULES CAN BE TRICKY BUT TAX LAWYERS SAY THE CHANGE IS EXCEPTIONALLY IMPORTANT AND PROBABLY WILL LEAD TO BIG INCREASES IN CHARITABLE GIVING THIS IS A VERY SIGNIFICANT CHANGE FOR MANY PEOPLE AND FOR A GREAT MANY CHARITIES SAYS DONALD C ALEXANDER A PARTNER IN THE LAW FIRM AKIN GUMP STRAUSS HAUER & FELD AND A FORMER INTERNAL REVENUE SERVICE COMMISSIONER THE AMT IS DESIGNED TO MAKE SURE UPPERINCOME TAXPAYERS PAY AT LEAST SOME TAX ABOUT 225000 INDIVIDUAL TAX RETURNS IN 1991 REFLECTED ALTERNATIVE TAX PAYMENTS THE IRS ESTIMATES THE FACT OF AMT AND THE FEAR OF AMT HAVE DISCOURAGED MANY PEOPLE FROM GIVING APPRECIATED PROPERTY SUCH AS ART AND COLLECTIBLES TO CHARITY SAYS MR ALEXANDER UNIVERSITIES MUSEUMS AND MANY CHARITIES STRONGLY AGREE ENACTMENT OF THIS PROVISION WAS EXTREMELY IMPORTANT FOR THE ENTIRE NONPROFIT COMMUNITY IN AMERICA WHICH HAS BEEN BADLY BUFFETED IN RECENT YEARS BY RISING EXPENSES AND DECLINING DONATIONS SAYS ASHTON HAWKINS EXECUTIVE VICE PRESIDENT OF THE METROPOLITAN MUSEUM OF ART IN NEW YORK THE NEW LAW IS RETROACTIVE TO JUNE 30 1992 FOR CHARITABLE GIFTS OF TANGIBLE PERSONAL PROPERTY ART COLLECTIBLES AND OTHER OBJECTS SO IF YOU DONATED A VALUABLE PAINTING TO A MUSEUM BETWEEN JUNE 30 1992 AND THE END OF LAST YEAR AND HAVE ALREADY FILED YOUR 1992 RETURN CONSIDER FILING AN AMENDED RETURN YOU CAN GO BACK AND AMEND YOUR TAX RETURN TO TAKE ADVANTAGE OF THE FAIR MARKET VALUE IF THAT WAS GREATER THAN YOUR COST BASIS SAYS ROBERT S PERSKY A NEW YORK LAWYER AND AUTHOR OF GUIDE TO TAX BENEFITS FOR COLLECTORS DEALERS & INVESTORS THE NEW CHARITABLEGIVING PROVISION SAILED EASILY THROUGH CONGRESS WITH THE STRONG BACKING OF SUCH POWERFUL LAWMAKERS AS SEN DANIEL PATRICK MOYNIHAN D NY CHAIRMAN OF THE SENATE FINANCE COMMITTEE THIS PROVISION WAS APPROVED BY CONGRESS LAST YEAR BUT DIED WHEN THE ENTIRE TAX BILL WAS VETOED FOR OTHER REASONS BY THENPRESIDENT BUSH MUSEUMS WHICH RELY ON DONATIONS FOR MOST OF THEIR COLLECTIONS ARE ESPECIALLY DELIGHTED BY THE NEW LAW IT IS THE MOST IMPORTANT TAX ISSUE FOR THE MUSEUM COMMUNITY AS A WHOLE SAYS PATRICIA WILLIAMS DEPUTY EXECUTIVE DIRECTOR OF THE AMERICAN ASSOCIATION OF MUSEUMS IN WASHINGTON IT AFFECTS EVERY KIND AND SIZE OF MUSEUM IN ALL PARTS OF THE COUNTRY THE NEW LAW WILL HAVE A VERY MAJOR IMPACT ON CHARITABLE GIVING AGREES MORTIMER M CAPLIN OF THE LAW FIRM OF CAPLIN & DRYSDALE IN WASHINGTON THE OLD LAW WAS A BIG DETERRENT TO MANY LARGE GIFTS BUT BEFORE JUMPING TO TAKE ADVANTAGE OF THE NEW LAW BE SURE YOU THOROUGHLY UNDERSTAND THE OLD RULES FOR DETAILS ASK THE IRS FOR ITS PAMPHLET ON CHARITABLE GIVING BE SURE THE CHARITY YOU ARE PLANNING TO MAKE YOUR GIFT TO IS ONE TO WHICH TAXDEDUCTIBLE CONTRIBUTIONS MAY BE MADE WARNS CLINT STRETCH DIRECTOR OF TAX LEGISLATIVE AFFAIRS AT DELOITTE & TOUCHE HE NOTES THAT CONTRIBUTIONS TO FOREIGN CHARITIES GENERALLY ARE NOT DEDUCTIBLE IN ADDITION DONORS OF ART COLLECTIBLES AND OTHER TANGIBLE PERSONAL PROPERTY STILL NEED TO BE CAREFUL NOT TO RUN AFOUL OF AN IMPORTANT RULE KNOWN AS THE UNRELATEDUSE TEST SAYS DONALD SCHAPIRO A PARTNER IN THE LAW FIRM OF CHADBOURNE & PARKE IN ESSENCE THIS MEANS YOU CAN DEDUCT ONLY YOUR COST BASIS NOT THE MARKET VALUE OF A GIFT OF TANGIBLE PERSONAL PROPERTY IF THE CHARITY USES YOUR GIFT IN A WAY UNRELATED TO ITS TAXEXEMPT PURPOSE OR FUNCTION FIGURING OUT WHAT UNRELATED MEANS CAN BE DIFFICULT SO DONORS SHOULD CONSULT AN EXPERT TO MAKE SURE THEY DON'T STEP ON LAND MINES SOME GIFTS EASILY PASS THE TEST FOR EXAMPLE A GIFT OF A VALUABLE PAINTING TO THE METROPOLITAN MUSEUM WHICH PROUDLY DISPLAYS IT CLEARLY WOULD QUALIFY LAWYERS SAY ANOTHER EXAMPLE THAT THE IRS SAYS WOULD PASS THE TEST A DONOR GIVES A PAINTING TO AN EDUCATIONAL INSTITUTION AND THE INSTITUTION PLACES IT IN ITS LIBRARY FOR DISPLAY AND STUDY BY ART STUDENTS BUT IF INSTITUTION SELLS THE PAINTING INSTEAD OF DISPLAYING IT AND USES THE PROCEEDS FOR EDUCATIONAL PURPOSES THE IRS WOULD CONSIDER THAT AN UNRELATED USE ALSO REMEMBER THAT GIFTS OF APPRECIATED PROPERTY GENERALLY SHOULD BE HELD FOR MORE THAN ONE YEAR TO BE DEDUCTIBLE AT FAIR MARKET VALUE 9308090101 930809 CLINTON APPOINTS 13 JUDGES TO FILL COURT VACANCIES WASHINGTON PRESIDENT CLINTON BEGAN TO FILL THE MANY FEDERAL COURT VACANCIES AROUND THE COUNTRY BY APPOINTING 13 JUDGES THE PRESIDENT SELECTED THREE APPEALS COURT JUDGES AND 10 TRIAL COURT JUDGES ALL ARE SUBJECT TO SENATE CONFIRMATION THERE HAD BEEN 123 VACANCIES 15 OF THE TOTAL ON THE FEDERAL APPELLATE AND DISTRICT COURT BENCHES BEFORE MR CLINTON ANNOUNCED THE APPOINTMENTS SATURDAY AMONG THE NOMINEES PIERRE LEVAL A FEDERAL DISTRICT JUDGE IN MANHATTAN WAS NAMED TO THE FEDERAL APPEALS COURT IN NEW YORK MARTHA CRAIG DAUGHTREY WHO IS THE ONLY WOMAN JUSTICE ON THE TENNESSEE SUPREME COURT WAS NAMED TO THE FEDERAL APPEALS COURT IN CINCINNATI VICE PRESIDENT AL GORE ISSUED A STATEMENT PRAISING JUSTICE DAUGHTREY'S WORK ON COURT REFORM AND HER EFFORTS TO PROMOTE WOMEN AND MINORITIES IN THE LEGAL PROFESSION NAMED TO THE APPEALS COURT IN RICHMOND VA WAS M BLANE MICHAEL A PARTNER IN WEST VIRGINIA'S LARGEST LAW FIRM JACKSON & KELLY WHO WAS COUNSEL TO JOHN D ROCKEFELLER WHEN THE SENATOR WAS GOVERNOR OF THE STATE 9308090100 930809 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 15/16 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 59 DAYS 313 60 TO 89 DAYS 316 90 TO 119 DAYS 318 120 TO 157 DAYS 332 158 TO 239 DAYS 340 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 319 60 DAYS 322 90 DAYS CERTIFICATES OF DEPOSIT 260 ONE MONTH 266 TWO MONTHS 270 THREE MONTHS 289 SIX MONTHS 308 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 306 30 DAYS 307 60 DAYS 308 90 DAYS 311 120 DAYS 323 150 DAYS 324 180 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 3/4 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 2 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 310 13 WEEKS 325 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 701 60 DAYS 709 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 697 60 DAYS 707 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 515 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9308090099 930809 CEDAR WOOD TO BE CLEARED BY THE EPA AS A REPELLENT A WALL STREET JOURNAL NEWS ROUNDUP WARY CEDARCHEST OWNERS AROUND THE COUNTRY CAN NOW BREATHE A SIGH OF RELIEF THE US ENVIRONMENTAL PROTECTION AGENCY HAS DECIDED THAT CEDAR WOOD IS A SAFE ALTERNATIVE TO PESTICIDES FOR REPELLING MOTHS AND MILDEW UNDER THE FEDERAL INSECTICIDE FUNGICIDE AND RODENTICIDE ACT THE EPA HAD BEEN TRYING TO FORCE THOSE WHO SOLD CEDAR WOOD AS A MOTH REPELLENT TO REGISTER THE WOOD AS A PESTICIDE THE REGISTRATION PROCESS ENTAILS EXTENSIVE TESTING AND LABELING REQUIREMENTS THE EPA SAID IT WILL ACCEPT COMMENTS ON ITS PLAN TO GRANT CEDAR WOOD AN EXEMPTION AND AN AGENCY SPOKESMAN SAID APPROVAL IS LIKELY BEFORE TOO LONG I DON'T THINK THERE WILL BE ANY PROBLEM WITH THIS GETTING APPROVED HE ADDED ONE COMPANY THAT HAD RESISTED THE EPA'S CRACKDOWN ON CEDAR WOOD EXPRESSED PLEASURE AT THE AGENCY'S CHANGE OF HEART THIS IS A WISE AND ENVIRONMENTALLY RESPONSIBLE MOVE SAID JEFFREY HOLLENDER CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SEVENTH GENERATION A COLCHESTER VT CATALOG COMPANY THE COMPANY'S CATALOG WHICH SPECIALIZES IN ENVIRONMENTALLY FRIENDLY PRODUCTS HAD COME UNDER FIRE FROM THE EPA FOR BOASTING THAT CEDAR BLOCKS REPEL MOTHS 9308090098 930809 JURY FINDS 3 COMPANIES LIABLE FOR ASBESTOS INJURIES JACKSON MISS AP A STATE COURT JURY FOUND THREE COMPANIES LIABLE FOR INJURIES SUSTAINED BY THOUSANDS OF SHIPYARD WORKERS WHO USED PRODUCTS CONTAINING ASBESTOS THE CASE CONSOLIDATED 9600 CLAIMS BY WORKERS AT INGALLS SHIPBUILDING IN PASCAGOULA MISS INGALLS IS A UNIT OF LITTON INDUSTRIES INC OF BEVERLY HILLS CALIF THE JURY FOUND WESTINGHOUSE ELECTRIC CORP OF PITTSBURGH DRESSER INDUSTRIES INC OF DALLAS AND CSR LTD OF AUSTRALIA GUILTY OF WRONGFULLY MAKING OR DISTRIBUTING PRODUCTS CONTAINING ASBESTOS THE THREE COMPANIES WERE ORDERED TO PAY 92 MILLION IN COMPENSATORY DAMAGES TO SIX SAMPLE PLAINTIFFS WHOSE CASES WERE HEARD IN THE FOURMONTH TRIAL THREE PLAINTIFFS RECEIVED NOTHING THE REMAINING CASES WILL BE DECIDED IN SMALL TRIALS THE COMPANIES ALSO WERE FOUND LIABLE FOR PUNITIVE DAMAGES WHICH WILL BE DETERMINED SEPARATELY TOTAL PAYMENTS BE HUNDREDS OF MILLIONS OF DOLLARS WESTINGHOUSE SAID IT WILL APPEAL TO THE MISSISSIPPI SUPREME COURT CSR SAID IT WILL APPEAL ATTORNEYS FOR DRESSER DIDN'T RETURN TELEPHONE CALLS SEEKING COMMENT 9308090097 930809 TECHNOLOGY GLAXO'S PATENT SUIT AGAINST NOVOPHARM GOES TO TRIAL TODAY CHICAGO NOVOPHARM INC SAID A PATENTINFRINGEMENT SUIT FILED BY GLAXO INC AGAINST IT REGARDING GLAXO'S PATENT FOR THE HUGESELLING ULCER DRUG ZANTAC WILL GO TO TRIAL TODAY IN FEDERAL COURT IN NORTH CAROLINA A UNIT OF CANADIAN GENERIC DRUG MAKER NOVOPHARM LTD NOVOPHARM SAID THE GLAXO SUIT WAS FILED AFTER NOVOPHARM FILED A NEW DRUG APPLICATION WITH THE FOOD AND DRUG ADMINISTRATION FOR RANITIDINE HYDROCHLORIDE THE ACTIVE INGREDIENT IN ZANTAC GLAXO HOLDS TWO PATENTS FOR RANITIDINE PATENT 1 EXPIRES IN 1995 AND PATENT 2 EXPIRES IN 2002 NOVOPHARM CLAIMS THE FORM OF RANITIDINE COVERED BY GLAXO'S PATENT 2 IS ALREADY COVERED BY ITS PATENT 1 MAKING THE SECOND PATENT INVALID HOWEVER GLAXO A UNIT OF THE BRITISH DRUG MAKER GLAXO PLC SAID THAT THERE ARE TWO FORMULAS FOR THE DRUG AND THAT IT HAS NEVER MADE THE DRUG BASED ON THE FORMULA UNDER PATENT 1 THE COMPANY SAID THE FACT THAT 60 NATIONS' PATENT OFFICES RECOGNIZE THE DIFFERENCE BETWEEN THE PATENTS PUTS IT IN A STRONG POSITION TO DEFEND THE TWO PATENTS IT HOLDS RANITIDINE HAD SALES OF 17 BILLION IN 1992 NOVAPHARM SAID 9308090096 930809 WHO'S NEWS CIRCLE K FINANCIAL CHIEF RESIGNS FROM HIS POST SUCCESSOR IS APPOINTED PHOENIX CIRCLE K CORP CHIEF FINANCIAL OFFICER LARRY ZINE RESIGNED LESS THAN TWO WEEKS AFTER THE CONCERN'S CHIEF EXECUTIVE OFFICER STEPPED ASIDE THE CONVENIENCESTORE CHAIN SAID MR ZINE 38 YEARS OLD HAD MADE IT CLEAR THAT HE WANTED TO CHANGE CAREERS FOLLOWING THE COMPANY'S EMERGENCE FROM BANKRUPTCY PROCEEDINGS LATE LAST MONTH HE WILL BE SUCCEEDED ON AUG 23 BY TOM GALLIGAN 48 FORMERLY PRESIDENT AND CHIEF OPERATING OFFICER OF MORSE SHOE CO IN A RELATED MOVE THE COMPANY NAMED MITCH TELSON CIRCLE K'S 50YEAROLD EXECUTIVE VICE PRESIDENT OF OPERATIONS AS CHIEF OPERATING OFFICER MR TELSON FILLS A POST LEFT VACANT BY JOHN F ANTIOCO 43 WHO WAS NAMED CHIEF EXECUTIVE OFFICER ON JULY 27 THE COMPANY'S FORMER CHIEF EXECUTIVE BART A BROWN LEFT AFTER SAYING HE HAD DONE THE JOB HE CAME TO DO WHEN THE COMPANY EMERGED FROM BANKRUPTCY MR BROWN REMAINS AT CIRCLE K AS CHAIRMAN 9308090095 930809 INTERNATIONAL KUWAITI REFINERY IS HIT BY ASIAN WORKERS' PROTEST SPECIAL TO THE WALL STREET JOURNAL KUWAIT HUNDREDS OF ASIAN WORKERS AT AN OIL REFINERY SMASHED WINDOWS AND OVERTURNED CARS TO PROTEST THEIR LIVING AND WORKING CONDITIONS SATURDAY'S RAMPAGE WAS THE FIRST KNOWN VIOLENT PROTEST IN THE EMIRATE WHICH DEPENDS ON ASIAN LABOR FOR UNSKILLED AND MENIAL JOBS THE UNREST HIT THE MINA ABDULLAH REFINERY ON SATURDAY MANY OF THE 2000 OR SO STRIKERS BROKE WINDOWS AT THE COMPOUND WHERE THEY LIVE AND OVERTURNED COMPANY CARS LOCAL NEWS REPORTS SAID A SPOKESMAN FOR KUWAIT NATIONAL PETROLEUM CO WHICH RUNS THE REFINERY SAID THE COMPANY HAD NOTHING TO DO WITH THE WORKERS' CONDITIONS WHICH HE DECLINED TO DISCUSS HE SAID A LOCAL CONTRACTING COMPANY HANDLES THE WORKERS PAYING THEIR SALARIES AND PROVIDING THEIR HOUSING NEITHER THE SPOKESMAN NOR LOCAL NEWSPAPER REPORTS IDENTIFIED THE WORKERS BY NATIONALITY HOWEVER MOST WORKERS IN SUCH JOBS COME FROM INDIA BANGLADESH AND PAKISTAN THEY USUALLY EARN ABOUT 160 A MONTH THE NEWSPAPER ALWATAN SAID THE STRIKERS COMPLAINED OF IMPROPER HOUSING BAD FOOD AND SHORT ANNUAL LEAVE 9308090094 930809 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED THREE NEW LISTINGS ALL PUBLIC OFFERINGS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED 23 NEW LISTINGS INCLUDING 14 INITIAL PUBLIC OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED ONE NEW LISTING AN INITIAL PUBLIC OFFERING THE BIG BOARD SAID IT BEGAN TRADING SHARES IN THE FOLLOWING INITIAL PUBLIC OFFERINGS MOTOR COACH INTERNATIONAL INC PHOENIX A MAKER OF INNERCITY COACHES UNDER MCO EXCEL REALTY TRUST INC SAN DIEGO A SELFADMINISTERED SELFMANAGED REAL ESTATE TRUST UNDER XEL AND ECKERD CORP LARGO FLA A DRUGSTORE OPERATOR UNDER ECK NATIONAL ASSOCIATION OF SECURITIES DEALERS INC ADDED THE FOLLOWING INITIAL PUBLIC OFFERINGS TO ITS NASDAQ NATIONAL MARKET CYGNE DESIGNS INC NEW YORK A WOMEN'S APPAREL CONCERN UNDER CYDS GREENFIELD INDUSTRIES INC AUGUSTA GA A MAKER OF EXPENDABLE CUTTING TOOLS AND RELATED PRODUCTS UNDER GFII STARSIGHT TELECAST INC FREMONT CALIF A DEVELOPER OF ONSCREEN INTERACTIVE TELEVISION GUIDES AND VCR CONTROL SERVICES UNDER SGHT ACTEL CORP SUNNYVALE CALIF A SOFTWARE DEVELOPMENT AND PROGRAMMING HARDWARE CONCERN UNDER ACTL BEST POWER TECHNOLOGY INC NECEDAH WIS A POWER PROTECTION EQUIPMENT COMPANY UNDER BPTI MID OCEAN LTD HAMILTON BERMUDA A REINSURANCE CONCERN UNDER MOCNF ARETHUSA OFFSHORE LTD HAMILTON BERMUDA AN OPERATOR OF OFFSHORE DRILLING RIGS UNDER ARTHF CODUCTUS INC SUNNYVALE CALIF AN ELECTRONIC COMPONENTS COMPANY UNDER CDTS DIAMETRICS MEDICAL INC ROSEVILLE MINN A DEVELOPER AND MANUFACTURER OF A PROPRIETARY BLOOD SYSTEM UNDER DMED EP TECHNOLOGIES INC SUNNYVALE CALIF A DESIGNER DEVELOPER AND MAKER OF ELECTROPHYSIOLOGY CATHETERS AND SYSTEM THE AMERICAN STOCK EXCHANGE BEGAN TRADING SHARES AND WARRANTS IN HOUSTON BIOTECHNOLOGY INC WOODLANDS TEXAS A BIOPHARMACEUTICAL CONCERN UNDER HBI HOUSTON BIOTECHNOLOGY JOINS THE AMERICAN STOCK EXCHANGE AS AN INITIAL PUBLIC OFFERING THE AMERICAN STOCK EXCHANGE'S EMERGING COMPANY MARKETPLACE BEGAN TRADING SHARES IN CHAD THERAPEUTICS INC CHATSWORTH CALIF A MAKER AND DISTRIBUTOR OF PORTABLE OXYGEN SYSTEMS UNDER CTUEC THE AMERICAN STOCK EXCHANGE ALSO BEGAN TRADING OPTIONS ON ALLEGHENY LUDLUM CORP THE PHILADELPHIA STOCK EXCHANGE BEGAN TRADING OPTIONS ON BROOKTREE CORP DIBRELL BROTHERS INC AND DIGI INTERNATIONAL INC THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS ON APPLEBEE'S INTERNATIONAL INC GENEVA STEEL CO JUSTIN INDUSTRIES INC UNIFI INC XIRCOM INC AND ALLEGHENY LUDLUM CORP 9308090093 930809 SENATE APPROVES A ROLLUP BILL TO PROTECT INVESTORS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE SENATE BY VOICE VOTE APPROVED A BILL TO CURB ABUSES IN SOCALLED LIMITED PARTNERSHIP ROLLUPS AND TO PROVIDE MORE PROTECTION FOR SUCH INVESTORS LIMITED PARTNERSHIP ROLLUPS ARE TRANSACTIONS IN WHICH INVESTORS IN AN EXISTING LIMITED PARTNERSHIP ARE SOLICITED TO APPROVE A REORGANIZATION WITH OTHER PARTNERSHIPS RESULTING IN AN EXCHANGE OF PARTNERSHIP SECURITIES FOR SECURITIES IN THE NEW ENTITY REFORM PROPONENTS CONTEND THAT MANY OF THE RESTRUCTURINGS HAVE DEVALUED SMALL INVESTORS' HOLDINGS WHILE ENRICHING GENERAL PARTNERS THE BILL APPROVED BY THE SENATE WOULD IMPROVE DISCLOSURE TO INVESTORS AND PROHIBIT COMPENSATION FOR THOSE WHO SOLICIT PROXIES IN ROLLUPS SOLELY ON THE BASIS OF SECURING YES VOTES IT ALSO WOULD REQUIRE THAT INVESTORS HAVE AT LEAST 60 DAYS TO REVIEW A ROLLUP UNLESS A SHORTER PERIOD IS MANDATED BY STATE LAW AND IT WOULD ALLOW LIMITED PARTNERS TO OBTAIN A LIST OF OTHER LIMITED PARTNERS AND TO COMMUNICATE WITH EACH OTHER ABOUT WHETHER TO OPPOSE THE PROPOSED ROLLUP IN ADDITION IT WOULD REQUIRE CLEAR DISCLOSURE IN SOLICITATIONS SENT TO INVESTORS REGARDING CHANGES IN THE BUSINESS PLAN VOTING RIGHTS OWNERSHIP INTERESTS AND GENERAL PARTNER COMPENSATION IT ALSO WOULD REQUIRE THE GENERAL PARTNER TO PROVIDE INVESTORS WITH A STATEMENT OF THE FAIRNESS OF THE PROPOSED TRANSACTION IN A TYPICAL PUBLICLY OFFERED LIMITED PARTNERSHIP A SPONSOR SOLICITS FUNDS FROM INVESTORS TO BUY REAL ESTATE GAS AND OIL FACILITIES HIGHTECH RESEARCH OR OTHER ENTERPRISES MORE THAN 150 BILLION OF PUBLIC LIMITED PARTNERSHIP INTERESTS WERE SOLD DURING THE 1980S ACCORDING TO THE SENATE BANKING COMMITTEE SEN CHRISTOPHER DODD CHAIRMAN OF THE SENATE SECURITIES SUBCOMMITTEE SAID THE BILL SEEKS TO BAN ABUSES NOT TRANSACTIONS THE HOUSE HAS ALREADY PASSED A FAR BROADER VERSION THE CONNECTICUT DEMOCRAT VOICED CONFIDENCE THAT THE HOUSE AND SENATE CAN SETTLE THEIR DIFFERENCES AND THAT A COMPROMISE BILL CAN BE ENACTED THIS YEAR BUT VERSIONS OF THE BILL HAVE BEEN FLOATED FOR TWO YEARS AND NOT ALL ROADBLOCKS HAVE BEEN REMOVED 9308090092 930809 CLINTON'S ECONOMIC PACKAGE ECONOMISTS EXPECT IMPACT OF PLAN WILL BE LIMITED BY RICK WARTZMAN AND LUCINDA HARPER STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON AFTER MONTHS OF HANDWRINGING AND FIERY DEBATE OVER THE BENEFITS AND DRAWBACKS OF THE CLINTON ECONOMIC PLAN CONGRESS HAS PASSED A PACKAGE THAT ANALYSTS CONTEND WILL HAVE ONLY A LIMITED INFLUENCE ON THE ECONOMY THE CONSENSUS AMONG SOME OF THE NATION'S LEADING FORECASTERS IS THAT THE PLAN WILL SLIGHTLY CRIMP ECONOMIC PERFORMANCE IN THE SHORT RUN WHILE PROVIDING A MODEST BOOST OVER THE LONG TERM THIS ISN'T GOING TO HAVE A MONUMENTAL IMPACT SAID JOEL PRAKKEN OF LAURENCE H MEYER & ASSOCIATES A ST LOUIS CONSULTING FIRM IT'S A SHALLOW SLIPPERY SLOPE WE'VE BEEN GOING DOWN AND WHEN WE MANAGE TO TURN IT AROUND WE'LL BE CRAWLING OUR WAY BACK UP ONE OF THE MOST POSITIVE EFFECTS OF THE CLINTON PACKAGE HAS BEEN UNDER WAY FOR MONTHS ONE REASON WHY ADMINISTRATION OFFICIALS HAVEN'T BEEN TOUTING THE PLAN'S GOOD POINTS AS MUCH AS THEY HAVE BEEN PREDICTING THE BAD THINGS THAT WOULD HAVE OCCURRED IF CONGRESS HADN'T PASSED IT MOTIVATED PARTLY BY THE SENSE THAT WASHINGTON IS FINALLY GETTING SERIOUS ABOUT CONTROLLING THE FEDERAL BUDGET DEFICIT THE FINANCIAL MARKETS ALREADY HAVE DRIVEN LONGTERM INTEREST RATES TO HISTORIC LOWS MAKING IT CHEAPER FOR BUSINESSES AND CONSUMERS TO BORROW LOW INTEREST RATES ARE A REAL STIMULUS TO THE ECONOMY TREASURY SECRETARY LLOYD BENTSEN SAID ON CBSTV'S FACE THE NATION YESTERDAY IF IT WASN'T FOR THAT YOU'D HAVE OVERPLAYED YOUR HAND IT TYPICALLY TAKES SIX TO NINE MONTHS FOR LOW INTEREST RATES TO BEGIN TO FILTER THROUGH THE SYSTEM THAT HELPS TO EXPLAIN WHY DESPITE THE RALLY IN THE BOND MARKET THE ECONOMY EXPANDED AT AN ANEMIC 16 ANNUAL RATE IN THE SECOND QUARTER BUT EVEN WHEN THE LOWER RATES START TO KICK IN IT COULD TAKE YEARS TO SEE SUBSTANTIAL BENEFIT ACCORDING TO ECONOMISTS MEANWHILE THE ECONOMY IS LIKELY TO BE SLOWED BY THE 241 BILLION IN HIGHER TAXES CONTAINED IN THE CLINTON PLAN THOUGH THE VAST MAJORITY OF AMERICANS WON'T SEE A BIGGER TAX BILL EXCEPT FOR AN AVERAGE OF 32 ANNUALLY AT THE GASOLINE PUMP THE VERY WEALTHY WILL BE HIT HARD THE CONGRESSIONAL BUDGET OFFICE ESTIMATES THAT THOSE MAKING MORE THAN 200000 ANNUALLY WILL PAY AN AVERAGE 174 MORE IN TAXES OR NEARLY 24000 UNLIKE MOST PEOPLE THE EXTREMELY WELLTODO OFTEN HAVE THE OPTION OF TAPPING THEIR SAVINGS RATHER THAN CUTTING CONSUMPTION TO PAY HIGHER TAXES IN THE SHORT RUN THIS SHOULD HELP MITIGATE THE PINCH OF THE CLINTON PLAN NONETHELESS THE PACKAGE WILL LIKELY ACT AS A DRAG DAVID WYSS RESEARCH DIRECTOR AT DRI/MCGRAWHILL INC THINKS THE PLAN WILL SHAVE ABOUT A QUARTER OF A PERCENTAGE POINT OFF ECONOMIC GROWTH BRINGING THE ANNUAL RATE DOWN TO 3 THROUGH THE MIDDLE OF 1994 HE ASSUMES THE PLAN WILL COST ABOUT 150000 NEW JOBS IN THAT SPAN DONALD RATAJCZAK DIRECTOR OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY IS SOMEWHAT LESS OPTIMISTIC HE PREDICTS THE PLAN WILL KEEP THE ECONOMY MIRED AT A 2 TO 25 ANNUAL GROWTH RATE IN THE FIRST HALF OF 1994 WITHOUT THE PLAN HE SAID GROWTH WOULD BE NEARER 3 IN THE PROCESS THE PACKAGE WILL COST 500000 NEW JOBS NEXT YEAR MR RATAJCZAK SAID CLEARLY AWARE OF SUCH DANGERS ESPECIALLY AT A TIME WHEN THE RECOVERY REMAINS SO FRAGILE THE CLINTON ADMINISTRATION OFFERRED A 16 BILLION STIMULUS PACKAGE EARLIER THIS YEAR BUT CONGRESS KILLED IT IN A DECISION DRIVEN AS MUCH BY ECONOMICS AS POLITICS THE ADMINISTRATION ALSO AGREED TO A LASTMINUTE PROVISION IN THE BUDGET PLAN THAT WILL GIVE INDIVIDUALS FACING HIGHER TAXES FOR 1993 THREE YEARS TO PAY OFF THE INCREASE AND THE GOVERNMENT WON'T CHARGE INTEREST FOR ALL SUCH MANEUVERING HOWEVER THE CLINTON PLAN IS ONLY ONE CHIP IN A MUCH LARGER ECONOMIC MOSAIC FACTORS SUCH AS THE STRENGTH OF THE US'S TRADING PARTNERS ACTION BY THE FEDERAL RESERVE AND THE NORMAL COURSE OF THE BUSINESS CYCLE COULD PROVE TO HAVE MORE OF AN EFFECT ON THE ECONOMY THAN THE CLINTON PACKAGE THE OUTCOME OF THE ADMINISTRATION'S HEALTHCARE REFORM EFFORT ALSO WILL HAVE A BIG IMPACT IT WOULDN'T BE THE FIRST TIME THAT A BUDGET PLAN HAS BEEN OVERWHELMED BY OUTSIDE FORCES BETWEEN 1950 AND 1953 FOR EXAMPLE AMERICANS FACED SHARPLY HIGHER TAXES THE ECONOMY THOUGH TOOK OFF LIKE A ROCKET LARGELY BECAUSE OF THE KOREAN WAR SAID KURT KARL SENIOR ECONOMIST AT THE WEFA GROUP A CONSULTING FIRM IN SUBURBAN PHILADELPHIA IN 1981 PRESIDENT REAGAN PUSHED THROUGH MASSIVE TAX CUTS AND THE ECONOMY STILL WENT INTO RECESSION THE NEXT YEAR IN 1982 BUSINESSES WERE STUCK WITH HIGHER TAXES AND THE ECONOMY BEGAN THE LONGESTEVER PEACETIME EXPANSION THE FOLLOWING YEAR NOT ALL OF THE SHORTTERM EFFECTS OF THE CLINTON PLAN ARE NEGATIVE CONSUMER CONFIDENCE ON A DOWNWARD SPIRAL SINCE THE START OF THE YEAR COULD PICK UP NOW THAT CONGRESS HAS SQUEEZED PAST THE GRIDLOCK AND 496 BILLION OF DEFICIT REDUCTION MAY BE IMMINENT THE SITUATION WE WERE IN WAS UNSTABLE SAID ALICIA MUNNELL ASSISTANT TREASURY SECRETARY FOR ECONOMIC POLICY SHE POINTS OUT THAT THE DEFICIT WAS GOBBLING UP AN EVERBIGGER SHARE OF ECONOMIC OUTPUT AND INTEREST PAYMENTS WERE CONSUMING MORE AND MORE OF THE FEDERAL BUDGET BY ELIMINATING THAT UNCERTAINTY WE HAVE HELPED THE ECONOMY IN AN IMMEDIATE WAY SHE CONTENDS BUT THE BIGGEST BENEFITS FROM DEFICIT REDUCTION COULD COME LATER MORE IMPORTANTLY A LOWER DEFICIT RAISES THE NATIONAL SAVINGS RATE WHICH IS A KEY TO IMPROVING THE NATION'S LONGRUN STANDARD OF LIVING THE CLINTON PACKAGE SHOULD HELP SHIFT OUR RESOURCE USE AWAY FROM CONSUMPTION TOWARD CAPITAL FORMATION SAID NOBEL LAUREATE PAUL SAMUELSON AN ECONOMIST AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY THAT'S THE WHOLE POINT OF THE EXERCISE IT'S VERY IMPORTANT BECAUSE WE'VE BEEN DOING THE OPPOSITE OF THAT SINCE 1980 AN ENLARGEMENT OF THE NATIONAL SAVINGS POOL MAY BE OFFSET BY PEOPLE DIPPING INTO THEIR PRIVATE SAVINGS TO PAY HIGHER TAXES BUT IF THE WEALTHY BEHAVE AS ECONOMISTS THINK THEY WILL THE RICH WILL DRAW ON THEIR SAVINGS ONLY IN THE SHORT RUN TO PAY FOR TAX INCREASES EVENTUALLY THEY WILL STOP SPENDING AS MUCH AND BY THAT TIME THE CUMULATIVE EFFECT OF LOW INTEREST RATES MAY BE STRONG ENOUGH TO COUNTERBALANCE THE DECLINE IN SPENDING ANALYSTS SAID IN THE END THE CLINTON TEAM SEEMS TO RECOGNIZE THAT THE BUDGET PACKAGE HAS MODEST IMPLICATIONS CONSIDER FOR INSTANCE THE PRESIDENT'S PLEDGE TO GENERATE EIGHT MILLION NEW JOBS OVER FOUR YEARS THAT'S ABOUT 167000 NEW JOBS A MONTHONLY SLIGHTLY HIGHER THAN THE 163000 JOBS THIS SUBPAR ECONOMY AVERAGED IN THE FIRST SEVEN MONTHS OF THIS YEAR 9308090091 930809 WHO'S NEWS VOLUNTEER CAPITAL CORP VOLUNTEER CAPITAL CORP NASHVILLE TENN TOBY S WILT 48 YEARS OLD WAS ELECTED A DIRECTOR OF THIS RESTAURANT OPERATOR EXPANDING BOARD MEMBERSHIP TO SIX MR WILT IS CHAIRMAN OF CHRISTIE COOKIE CO AND PRESIDENT OF TSW INVESTMENT CO TWO CLOSELY HELD COMPANIES IN NASHVILLE 9308090090 930809 WHO'S NEWS ITT CORP ITT CORP NEW YORK MICHAEL GEORGILAS WAS NAMED VICE PRESIDENT GAMING DIVISION AT THIS DIVERSIFIED CONCERN'S ITT SHERATON HOTEL UNIT MR GEORGILAS 39 YEARS OLD WILL REPORT TO JOHN KAPIOLTAS DIVISION PRESIDENT MR GEORGILAS WILL ADVISE MR KAPIOLTAS 66 WHO HAS BEEN DIRECTING THE COMPANY'S QUEST TO ENTER GAMING IN THE US SINCE JOHN V GIOVENCO'S DEPARTURE LAST MONTH MR GEORGILAS HAD BEEN SENIOR VICE PRESIDENT FOR EUROPA CRUISES CORP WHERE HE DIRECTED OPERATIONS ON THREE GAMING VESSELS IN FLORIDA AN ITT SHERATON SPOKESWOMAN SAID MR GEORGILAS WOULD HAVE NO OPERATIONAL RESPONSIBILITY AND MR KAPIOLTAS WILL CONTINUE TO DIRECT THE FIRM'S GAMING EFFORTS FOR THE FORESEEABLE FUTURE 9308090089 930809 WHO'S NEWS TRAVELERS CORP TRAVELERS CORP HARTFORD CONN JOHN W FRANK 53 YEARS OLD AND FOUNDER OF LIPERA FRANK INC A PROCESS ENGINEERING AND FINANCIAL CONSULTING FIRM WAS NAMED CHIEF AUDITOR OF THIS FINANCIAL SERVICES AND INSURANCE COMPANY HE SUCCEEDS HARVEY J SAFFEIR 63 WHO RETIRED 9308090088 930809 EPA SAYS DUPONT MISCHARACTERIZED' AGENCY'S CONCERN ON BENLATE FUNGICIDE BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL THE ENVIRONMENTAL PROTECTION AGENCY DELIVERING A STINGING REBUKE TO DUPONT CO SAID A DUPONT OFFICIAL MISCHARACTERIZED IN FEDERAL COURT TESTIMONY LAST WEEK THE AGENCY'S CONCERNS ABOUT THE COMPANY'S BENLATE FUNGICIDE IN A LETTER SENT TO DUPONT FRIDAY AFTERNOON AND LATER READ INTO THE COURT RECORD BY A PLAINTIFFS' ATTORNEY THE EPA SAID A DUPONT OFFICIAL HAD LEFT ERRONEOUS IMPRESSIONS ABOUT ITS POSITIONS BY TESTIFYING THAT THE AGENCY DOESN'T HAVE ANY CONCERNS ABOUT DUPONT'S BENLATE FUNGICIDE AND BY TESTIFYING THAT DUPONT IS COOPERATING FULLY WITH THE EPA'S REVIEW OF THE FUNGICIDE DUPONT'S REPUTATION AS WELL AS ITS FUNGICIDE HAVE BEEN ON TRIAL FOR THE PAST MONTH IN FEDERAL COURT IN COLUMBUS GA IN THE FIRST TEST OF HUNDREDS OF BENLATE CROP DAMAGE COMPLAINTS FILED IN STATE AND FEDERAL COURTS FINAL ARGUMENTS IN THE CASE IN WHICH FOUR ORNAMENTAL PLANT GROWERS CLAIM BENLATE CAUSED MILLIONS OF DOLLARS OF DAMAGE TO THEIR PLANTS AND THAT DUPONT FRAUDULENTLY COVERED UP EVIDENCE ABOUT BENLATE CONTAMINATION AND TOXICITY ARE EXPECTED TOMORROW DUPONT PULLED ITS BENLATE DF FUNGICIDE OFF THE MARKET IN MARCH 1991 FOLLOWING GROWER COMPLAINTS OF PLANT DAMAGE DUPONT PAID ABOUT 500 MILLION IN DAMAGES OVER THE NEXT YEAR AND A HALF TO GROWERS WITH DAMAGED PLANTS WHO HAD USED BENLATE BUT THE WILMINGTON DEL COMPANY HALTED ALL PAYMENTS LAST NOVEMBER SAYING ITS SCIENTISTS HAD CONCLUDED THAT BENLATE WASN'T RESPONSIBLE FOR THE DAMAGES AFTER ALL THE EPA RESPONSE TO THE TESTIMONY LAST WEEK OF RICHARD HOLT DUPONT'S MANAGER OF REGISTERING PRODUCTS WITH THE EPA WAS PROMPTED BY A REQUEST FROM AN ATTORNEY FOR THE PLAINTIFFS THAT AN EPA OFFICIAL TESTIFY IN THE LETTER DOUGLAS D CAMPT EPA'S OFFICE OF PESTICIDE PROGRAM DIRECTOR SAID THE AGENCY BELIEVED MR HOLT HAD MISCHARACTERIZED THE AGENCY'S POSITIONS IN FOUR AREAS HIS STATEMENTS THAT EPA HAS CONCLUDED THAT CONTAMINANTS IN BENLATE DID NOT CAUSE PLANT DAMAGE HIS STATEMENTS THAT EPA HAS NO CONCERNS ABOUT SULFONYLUREA COMPOUNDS PESTICIDES WHICH PLAINTIFFS CLAIM CONTAMINATED BENLATE AND CAUSED PLANT DAMAGE HIS STATEMENTS THAT DUPONT HAS PROVIDED EPA WITH ALL THE DATA REQUESTED BY THE AGENCY HIS STATEMENTS ABOUT DUPONT COMPLIANCE AND ENFORCEMENT STATUS REGARDING THE DISCLOSURE REQUIREMENTS OF FEDERAL LAWS COVERING BENLATE USE MR CAMPT COULDN'T BE REACHED TO COMMENT ON THE LETTER ANOTHER EPA OFFICIAL WHO ASKED NOT TO BE IDENTIFIED SAID THAT THE AGENCY NORMALLY DOESN'T RESPOND TO TRIALS IN PROGRESS BUT ENOUGH CONCERNS WERE RAISED BY THE TESTIMONY THAT WE THOUGHT A LETTER IN RESPONSE WAS JUSTIFIED THE OFFICIAL SAID SOME EPA STAFFERS FELT SO STRONGLY ABOUT MR HOLT'S TESTIMONY THAT THEY ARGUED FOR AN EPA OFFICIAL TESTIFYING IN PERSON IN THE GEORGIA CASE THE OFFICIAL SAID BUT THAT IDEA WAS VETOED BY SENIOR AGENCY OFFICIALS DUE TO CONCERNS THAT THE EPA WOULD BE SETTING A PRECEDENT FOR OTHER CIVIL CASES THE OFFICIAL SAID DUPONT SPOKESMAN MICHAEL RICCIUTO SAID THAT THERE OBVIOUSLY ARE AREAS OF DISAGREEMENT BETWEEN DUPONT AND THE EPA CONCERNING BENLATE MR HOLT WHO WASN'T AVAILABLE FOR COMMENT WAS A LOT MORE CATEGORICAL THAN OTHER COMPANY OFFICIALS HAVE BEEN IN RESPONDING TO QUESTIONS ABOUT THE EPA'S CONCERNS ABOUT BENLATE AND THE COMPANY'S DEALINGS WITH THE REGULATOR MR RICCIUTO SAID HE EMPHASIZED THAT THE COMPANY DIDN'T THINK THE EPA LETTER WAS A BLOW TO ITS CASE IN THE GEORGIA COURT BUT OBVIOUSLY WE NEED TO WORK ON OUR RELATIONSHIP WITH THE EPA HE CONCEDED C NEAL POPE ATTORNEY FOR THE PLAINTIFFS SAID THE LETTER SETS THE RECORD STRAIGHT ON THE RELATIONSHIP BETWEEN THE EPA AND DUPONT CONCERNING BENLATE IN MR HOLT'S TESTIMONY LAST TUESDAY HE SAID TO PARAPHRASE THE EPA THEY'VE GONE ON RECORD AS SAYING THATTHERE'S NO ASSOCIATION BETWEEN CONTAMINANTS AND BENOMYL THE ACTIVE INGREDIENT IN BENLATE AND PLANT DAMAGE THE EPA LETTER RESPONDED THAT WHILE NO CONTAMINANTS HAVE BEEN DEFINITIVELY IMPLICATED IN THE PLANT DAMAGE SO FAR THE AGENCY HAS NEITHER CONCLUDED THAT CONTAMINANTS IN BENOMYL ARE RESPONSIBLE FOR PLANT DAMAGE NOR HAS IT CONCLUDED THAT CONTAMINANTS ARE NOT RESPONSIBLE FOR ANY DAMAGE MR HOLT ALSO TESTIFIED THAT DUPONT GAVE IN AFTER MONTHS OF NEGOTIATIONS TO REPEATED DEMANDS FROM THE EPA FOR BENLATE DOCUMENTS THAT THE COMPANY CONSIDERED OPINION STATEMENTS OF ITS EMPLOYEES AND CLAIMS ADJUSTERS AND OTHER CONTRACTORS CONCERNING ALLEGED PLANT DAMAGE CAUSED BY BENLATE THE EPA SHOT BACK IN ITS LETTER CONTRARY TO HIS TESTIMONY MR HOLT INFORMED THE AGENCY IN HIS MOST RECENT LETTER ON THE SUBJECT DATED JULY 14 1993 THAT DUPONT WOULD NOT PROVIDE THE AGENCY WITH PORTIONS OF THE REPORTS OF CLAIMS ADJUSTERS BECAUSE SUCH INFORMATION WAS OPINION INFORMATION AND NOT REPORTABLE UNDER APPLICABLE PESTICIDE REGULATIONS THE EPA OFFICIAL WHO ASKED NOT TO BE IDENTIFIED CONFIRMED THAT AS OF FRIDAY AFTERNOON THE EPA STILL HAS NOT RECEIVED ALL THE DOCUMENTS WE HAVE REQUESTED FROM DUPONT 9308090087 930809 BUSINESS BRIEFS GEORGIAPACIFIC CORP BOUGHT AN ENGINEEREDLUMBER MANUFACTURING FACILITY FROM FIBREBOARD TECHNOLOGIES CORP A UNIT OF FIBREBOARD CORP STANDARD CALIF TERMS WEREN'T DISCLOSED GRAND UNION CO WAYNE NJ A FOODSTORECHAIN OPERATOR WILL ACQUIRE FIVE LONG ISLAND NY SUPERMARKET LOCATIONS FROM FOODARAMA SUPERMARKETS INC FOR ABOUT 16 MILLION PLUS THE INVENTORY VALUE ABITIBIPRICE INC A TORONTO FORESTPRODUCTS CONCERN WILL REDUCE THIS YEAR'S PRODUCTION BY 80000 METRIC TONS OF NEWSPRINT IN ADDITION TO THE 60000 METRIC TONS ANNOUNCED LAST MONTH BIOTECHNOLOGY GENERAL CORP AND GYNEX PHARMACEUTICALS INC VERNON HILLS ILL TWO DEVELOPMENTSTAGE DRUG COMPANIES FOCUSING ON HORMONEBASED TREATMENTS SAID SHAREHOLDERS APPROVED A MERGER VALUED AT 525 MILLION GYNEX WILL BECOME A BIOTECHNOLOGY UNIT 9308090086 930809 WHO'S NEWS STOKELY USA INC STOKELY USA INC OCONOMOWOC WIS VERNON L WIERSMA 43 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF THE CANNED AND FROZEN VEGETABLE CONCERN MR WIERSMA THE COMPANY'S PRESIDENT SUCCEEDS FRANK J PELISEK 63 A BOARD MEMBER WHO HAD BEEN ACTING CEO SINCE JUNE 1992 9308090085 930809 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT BANKERS TRUST NEW YORK CORP 100 MILLION OF CONVERTIBLE CAPITAL SECURITIES DUE AUG 15 2033 PRICED AT PAR TO YIELD 75 ACCORDING TO MCM CORPORATEWATCH THE COMPANY CAN LOWER THE COUPON ON THE SECURITIES WHICH ARE NONCALLABLE FOR FIVE YEARS BY 150 BASIS POINTS WITH 60 DAYS' NOTICE AT THAT POINT INVESTORS HAVE THE OPTION TO CONVERT THE DEBT INTO 25 PAR PERPETUAL PREFERRED STOCK WITH A 75 DIVIDEND THE CONVERTIBLE CAPITAL SECURITIES ARE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP AND THE PERPETUAL PREFERRED IS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO CHEMICAL BANK 150 MILLION OF SUBORDINATED NOTES DUE AUG 15 2005 PRICED AS 6625S AT 99633 TO YIELD 667 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 85 BASIS POINTS ABOVE 10YEAR WHENISSUED TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC CHEMICAL BANK IS A UNIT OF CHEMICAL BANKING CORP CONTINENTAL CABLEVISION INC 1 BILLION THREEPART ISSUE OF DEBT PRICED BY UNDERWRITERS LED BY MORGAN STANLEY & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 200 MILLION OF NONCALLABLE SENIOR NOTES DUE SEPT 15 2001 WAS PRICED AT PAR TO YIELD 85 THE SECOND TRANCHE 275 MILLION OF NONCALLABLE SENIOR DEBENTURES DUE SEPT 15 2005 WAS PRICED AS AT PAR TO YIELD 8875 THE THIRD TRANCHE 525 MILLION OF SENIOR DEBENTURES DUE AUG 1 2013 WAS PRICED AT PAR TO YIELD 95 THE DEBENTURES ARE CALLABLE AFTER 12 YEARS ALL PARTS ARE RATED BA2 BY MOODY'S AND DOUBLEBMINUS BY S&P F&M DISTRIBUTORS INC 75 MILLION OF SENIOR SUBORDINATED NOTES DUE APRIL 15 2003 PRICED AT PAR TO YIELD 115 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS RATED SINGLEB2 BY MOODY'S AND SINGLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 600 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1993166 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 1993G33 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GREENWICH CAPITAL MARKETS INC THE OFFERING SERIES 1993170 IS BACKED BY THE AGENCY'S 15YEAR 55 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7125 AND WEIGHTED AVERAGE MATURITY OF 179 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 1993G32 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE MATURITY OF 359 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 1501 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 1993172 IS BACKED BY THE AGENCY'S 7YEAR 6 BALLOON MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 664 AND WEIGHTED AVERAGE MATURITY OF 82 MONTHS BANCO DI NAPOLI ITALY 100 MILLION OF COLLARED FLOATINGRATE EURONOTES DUE SEPT 15 2003 AT ISSUE AND REOFFER PRICE 9975 VIA LEHMAN BROTHERS INTERNATIONAL LTD INTEREST PAYABLE SEMIANNUALLY AT 0125 POINT BELOW SIXMONTH LONDON INTERBANK OFFERED RATE MINIMUM COUPON 6125 MAXIMUM 10 FEES 05 POINT BAYERISCHE VEREINSBANK OVERSEAS FINANCE NV GERMAN PARENT 500 MILLION MARKS OF 6 EUROBONDS DUE SEPT 3 1998 AT ISSUE PRICE 1016 VIA BAYERISCHE VEREINSBANK AG BONDS YIELD 607 AT 99725 BREAKEVEN PRICE FOR COMANAGERS A SPREAD OF 16 BASIS POINTS ABOVE COMPARABLE GERMAN GOVERNMENT TREUHAND NOTE GUARANTOR BAYERISCHE VEREINSBANK AG FEES TWO POINTS LESS 0125 POINT FOR LEAD MANAGER CHASE MANHATTAN CORP U S 100 MILLION OF SUBORDINATED COLLARED FLOATINGRATE EURONOTES DUE SEPT 1 2003 AT ISSUE AND FIXED REOFFER PRICE 100 VIA KIDDER PEABODY SECURITIES CO INTEREST PAYABLE SEMIANNUALLY AT 15 BASIS POINTS BELOW SIXMONTH LIBOR MINIMUM COUPON 55 MAXIMUM 9 FEES 05 POINT LANDESBANK SCHLESWIGHOLSTEIN GIROZENTRALE GERMANY 100 MILLION SWISS FRANCS OF 425 PRIVATELY PLACED NOTES DUE SEPT 4 1996 PRICED AT 1015 VIA UNION BANK OF SWITZERLAND FEES 125 POINTS 9308090084 930809 CREDIT MARKETS BOND YIELDS MAY NOW BE AT LOWS 30YEAR RATE IS SEEN IN RANGE OF 657 FOR REMAINDER OF '93 BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT DOESN'T GET MUCH BETTER THAN THIS SO SAY SOME ANALYSTS OF THE US BOND MARKET WHERE PRICES HAVE RISEN TO THE POINT WHERE YIELDS FOR THE 30YEAR TREASURY BOND LAST WEEK HIT THEIR LOWEST LEVELS SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE BONDS IN 1977 WHILE FEW IN THE BOND MARKETS ARE ARGUING THAT INTEREST RATES ARE ABOUT TO GO NORTH AGAIN NEITHER ARE MANY EXPECTING SHARPLY LOWER RATES RATHER MANY BELIEVE THE 30YEAR BOND WILL BE TRADING IN A RANGE BETWEEN 65 AND 7 FOR THE REMAINDER OF THE YEAR SHORTTERM RATES ON THE OTHER HAND ARE SEEN RISING FURTHER BY YEAR END THUS NARROWING THE VERY WIDE GAP BETWEEN LONGTERM AND SHORTTERM INTEREST RATES CLEARLY THE BIGGEST BOOST TO THE BOND MARKET SO FAR THIS YEAR HAS BEEN PRESIDENT CLINTON'S BUDGET PACKAGE THE YIELD OF THE 30YEAR BOND WAS PUSHED DOWN ABOUT A PERCENTAGE POINT PARTLY BY HOPES THAT THE GOVERNMENT MIGHT ACTUALLY DO SOMETHING TO REDUCE ITS SPENDING AND CUT ITS BUDGET DEFICIT THE BELIEF THAT PROPOSED TAX INCREASES WOULD DAMP AN ALREADY SLUGGISH ECONOMY ALSO WAS A FACTOR BOND INVESTORS OFTEN WELCOME NEWS OF ECONOMIC SLUGGISHNESS BECAUSE IT MEANS LESS OF A RISK OF HIGHER INFLATION WHICH CAN SHARPLY REDUCE THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN BUT NOW THAT CONGRESS HAS APPROVED THE PRESIDENT'S BUDGET PACKAGE THERE IS LITTLE ELSE FOR BOND INVESTORS TO LOOK FORWARD TO WE'VE USED UP MUCH OF THE GOOD NEWS FOR 1993 IN THE PAST MONTH OR TWO SAYS LOUIS CRANDALL CHIEF ECONOMIST AT RH WRIGHTSON & ASSOCIATES A FIRM THAT ANALYZES THE TREASURY MARKET IT HAD BEEN WIDELY EXPECTED THAT THE ECONOMY WOULD GO THROUGH A SLOW PATCH IN THE SPRING OF THIS YEAR AND IT DID SAYS MR CRANDALL AND IT'S CLEAR THAT THIS IS AS GOOD AS IT GETS ON THE BUDGET FRONT HE ADDS BECAUSE THEY WERE RIVETED TO THE GOINGSON IN WASHINGTON OVER THE BUDGET BOND INVESTORS FRIDAY SHRUGGED OFF AN EMPLOYMENT REPORT THAT MAY BE A HARBINGER OF GREATER ECONOMIC STRENGTH IN THE SECOND HALF OF THIS YEAR THE US CIVILIAN UNEMPLOYMENT RATE DROPPED TO 68 IN JULY THE LOWEST SINCE SEPTEMBER 1991 FROM 7 IN JUNE AND NONFARM PAYROLLS ROSE 162000 IN JULY COMPARED WITH 44000 IN JUNE THE 30YEAR BOND ROSE JUST 1/32 TO 107 27/32 WHILE ITS YIELD REMAINED UNCHANGED AT 652 IN A MONTH OR TWO INVESTORS IN LONGTERM SECURITIES ARE GOING TO BE LOOKING MORE AT ECONOMIC FUNDAMENTALS RATHER THAN AT OTHER ISSUES LIKE THE BUDGET DEBATE OR COMING TREASURY AUCTIONS SAYS MR CRANDALL WE THINK THE GROSS DOMESTIC PRODUCT WILL GROW MORE THAN AT AN ANNUAL RATE OF 3 IN THE SECOND HALF SAYS MR CRANDALL COMPARED WITH AN ANNUAL RATE OF JUST 16 IN THE SECOND QUARTER AS A RESULT WE THINK THAT THE 30YEAR BOND COULD BE BACK AT 7 BY THE END OF THE YEAR HE ADDS GIVEN THE TRADING RANGE WE'VE BEEN IN THAT'S NOT A TERRIBLE SETBACK LAST WEEK THE PUBLIC SECURITIES ASSOCIATION RELEASED A REPORT FROM ITS ECONOMIC ADVISORY COMMITTEE THAT FORECAST AN ACCELERATION OF ECONOMIC GROWTH DURING THE SECOND HALF BUT WITH LOW INFLATION THE COMMITTEE ESTIMATED THAT THE CONSUMER PRICE INDEX A MEASURE OF INFLATION AT THE CONSUMER LEVEL WILL STAND AT A 32 ANNUAL RATE OF INCREASE BY YEAR END AS A RESULT SHORT AND LONGTERM INTEREST RATES ARE FORECAST TO REMAIN NEAR THEIR CURRENT LEVELS THROUGH THE REST OF THE YEAR THE PSA IS A A TRADE ASSOCIATION OF BANKS AND BROKERAGE FIRMS THAT DEAL IN THE BOND MARKETS THERE IS ONE IMPORTANT SIGN SOME INVESTORS BELIEVE LONGTERM RATES MAY STILL DROP A BIT MORE HIGH LEVELS OF INTEREST IN TREASURY ZEROCOUPON BONDS WHICH ARE SOLD AT A DEEP DISCOUNT TO FACE VALUE AND PAY NO INTEREST BUT ARE REDEEMED AT PAR ZEROCOUPON BONDS ARE CREATED BY SOCALLED STRIPPING OF SECURITIES OR SEPARATING THEM INTO INTERESTONLY AND PRINCIPALONLY PORTIONS ACCORDING TO A TREASURY REPORT RELEASED LAST WEEK NEARLY 8 BILLION OF TREASURY SECURITIES WERE STRIPPED IN JULY UP 41 FROM 566 BILLION IN JUNE THE REPORT ALSO SHOWED THAT MOST OF THE ISSUES STRIPPED WERE 30YEAR BONDS ACCORDING TO MR CRANDALL MUCH OF THE INTEREST FOR SUCH VOLATILE LONGTERM SECURITIES COMES FROM SPECULATIVE TRADERS LOOKING TO MAKE QUICK GAINS ON SMALL MOVES IN THE TREASURY MARKET SUCH INCREASED ACTIVITY HE SAYS COULD BE A SIGN THAT OTHER INVESTORS ARE LOSING INTEREST IN BUYING AND HOLDING LONGTERM TREASURYS BECAUSE THEY FEAR INTEREST RATES DON'T HAVE MUCH FURTHER TO FALL IF THEY ARE GOING TO FALL AT ALL HOWEVER OTHERS ARE OPTIMISTIC ABOUTLONGTERM RATES FALLING KATHLEEN M CAMILLI CHIEF ECONOMIST AT MARIA FIORINI RAMIREZ INC AN INVESTMENT ADVISORY FIRM SAYS THAT THE YIELD OF THE 30YEAR BOND COULD DROP TO 625 BY THE END OF THIS YEAR AND POSSIBLY BEFORE THE END OF THIS QUARTER SHE POINTS TO THE PASSAGE OF THE BUDGET MODERATE INFLATION MODERATE ECONOMIC GROWTH AND A REDUCED SUPPLY OF 30YEAR BONDS AS FACTORS LEADING TO FURTHER DECLINES THE NEXT MOVE WILL BE A BREAK TO BELOW 650 SHE SAYS AND THE NEW TRADING RANGE WILL BE 625 TO 675 MS CAMILLI BELIEVES THAT THE BUDGET PACKAGE WILL ACT AS A DRAG ON THE ECONOMY AND REDUCE GDP ANNUAL GROWTH BY ABOUT A HALFPERCENTAGE POINT FOR THE REMAINDER OF THE YEAR TO ABOUT 27 IN THE THIRD QUARTER AND 25 IN THE FOURTH QUARTER THIS WEEK ATTENTION IN THE BOND MARKET WILL BE FOCUSED ON THE TREASURY'S RECORD 385 BILLION QUARTERLY REFUNDING AUCTIONS OF THREEYEAR NOTES 10YEAR NOTES AND 30YEAR BONDS BECAUSE THIS WEEK'S AUCTION OF THE 30YEAR BOND WILL BE THE LAST UNTIL FEBRUARY MANY IN THE MARKETS INCLUDING MS CAMILLI BELIEVE ITS YIELD WILL BE PUSHED EVEN LOWER BECAUSE OF A SUPPLY SHORTAGE ACCORDING TO MS CAMILLI THE 10YEAR NOTE AUCTION SLATED FOR WEDNESDAY IS LIKELY TO MEET WITH MODERATE DEMAND WHILE THE 30YEAR AUCTION SLATED FOR THURSDAY IS LIKELY TO MEET WITH VERY STRONG DEMAND THE THREEYEAR NOTE AUCTION SLATED FOR TOMORROW HOWEVER IS LIKELY TO MEET WITH WEAK DEMAND ON FRIDAY THE THREEYEAR NOTE TO BE AUCTIONED TOMORROW WAS YIELDING 449 IN WHENISSUED TRADING 010 PERCENTAGE POINT MORE THAN THE OUTSTANDING THREEYEAR NOTE SUCH A WIDE GAP IS A SIGN THAT INVESTORS ARE UNINTERESTED IN OWNING SUCH A SHORTTERM NOTE WHEN MANY EXPECT SHORTTERM RATES TO RISE BY YEAR END SAYS MS CAMILLI ON FRIDAY THE 30YEAR BOND WAS YIELDING 646 IN WHENISSUED TRADING BELOW THE 652 YIELD FOR THE OUTSTANDING ISSUE WHILE THE 10YEAR NOTE WAS YIELDING 580 JUST BELOW THE 583 YIELD FOR THE OUTSTANDING 10YEAR NOTE ISSUE ONE PERSON WHO IS VERY CONFIDENT THAT INTEREST RATES ESPECIALLY LONGTERM INTEREST RATES ARE UNLIKELY TO RISE OR FALL SHARPLY OVER THE NEXT YEAR IS WILLIAM GROSS MANAGING DIRECTOR OF PACIFIC INVESTMENT MANAGEMENT CO ONE OF THE NATION'S TOP BOND FUND MANAGEMENT FIRMS IN A NOTE SENT TO CLIENTS RECENTLY MR GROSS WAXED POETIC ABOUT A TRANQUIL CREEK IN HIS BOYHOOD HOMETOWN IN OHIO BY WAY OF DESCRIBING HIS OUTLOOK ON INTEREST RATES WHAT LIES AHEAD MAY BE A PERIOD THAT IS NEITHER FISH NOR FOWL IS NEITHER BULL NOR BEAR BUT IS A MARKET WHERE INTEREST RATES AND THE ECONOMY MEANDER THROUGH TIME MUCH LIKE THE BUTLER CREEK OF MY CHILDHOOD CALM PLACID LITTLE TURMOIL LOW VOLATILITY MR GROSS WROTE WE ARE IN MY MEASURED OPINION HEADED TOWARDS A CASPAR MILQUETOAST MARKET WE'VE SHOT THE RAPIDS GONE OVER THE WATERFALL OF PLUNGING INTEREST RATES AND ARE NOW ABOUT TO NAVIGATE A FAR MORE CALM AND PLACID STREAM THAN WE'VE EVER MANAGED BEFORE SENATE DEBATE ON THE CLINTON BUDGET PROPOSAL HELD SO MUCH SWAY OVER THE BOND MARKET FRIDAY THAT THE MARKET PRACTICALLY IGNORED A RATHER STRONG ECONOMIC REPORT FOR JUNE TREASURY PRICES ENDED NARROWLY MIXED THE 10YEAR NOTE ROSE LESS THAN 1/8 POINT OR LESS THAN 125 FOR A BOND WITH A 1000 FACE VALUE TO 102 31/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE FELL TO 583 FROM 584 ON THURSDAY THE FIVEYEAR NOTE ALSO ROSE LESS THAN 1/8 POINT TO 100 14/32 TO YIELD 514 DOWN FROM 516 BOND PRICES RODE A ROLLER COASTER THROUGHOUT MUCH OF THE DAY AS THEY ROSE OR FELL IN REACTION TO NEWS OUT OF WASHINGTON AT DAY'S END IT APPEARED THAT SEN BOB KERREY D NEB WOULD SUPPORT THE PACKAGE THUS PROVIDING A CRUCIAL VOTE NEEDED TO PASS THE LEGISLATION BONDS BOUNCED BACK FROM LOSSES OF MORE THAN 1/2 POINT ON THE NEWS IN THE CORPORATE MARKET INVESTORS SNAPPED UP A FLOOD OF JUNK BOND ISSUES INCLUDING A 1 BILLION ISSUE FROM CONTINENTAL CABLEVISION INC A CABLETELEVISION COMPANY THE ISSUE WAS ONE OF THE BIGGEST JUNK ISSUES TO HIT THE MARKET IN TWO YEARS INVESTOR DEMAND WAS STRONG ENOUGH THAT THE COMPANY WAS ABLE TO DOUBLE THE SIZE OF THE DEAL THE THREECLASS DEAL INCLUDED 200 MILLION OF EIGHTYEAR NONCALLABLE SENIOR NOTES WHICH WERE PRICED AT PAR TO YIELD 85 THE COMPANY ALSO ISSUED 275 MILLION OF 12YEAR NONCALLABLE SENIOR DEBENTURES PRICED AT PAR TO YIELD 8875 AND 525 MILLION OF 20YEAR SENIOR DEBENTURES WHICH WERE PRICED AT PAR TO YIELD 95 THE 20YEAR DEBENTURES ARE CALLABLE AFTER 12 YEARS 9308090083 930809 KODAK'S BOARD MEMBERS HERE ARE THE MEMBERS OF EASTMAN KODAK CO'S BOARD JOHN J PHELAN JR PRESIDENT INTERNATIONAL FEDERATION OF STOCK EXCHANGES ROBERTO C GOIZUETA CHAIRMAN AND CHIEF EXECUTIVE OFFICER COCACOLA CO CHARLES T DUNCAN SENIOR COUNSEL REID & PRIEST PAUL E GRAY CHAIRMAN OF THE CORPORATION MASSACHUSETTS INSTITUTE OF TECHNOLOGY RICHARD A ZIMMERMAN CHAIRMAN AND CEO HERSHEY FOODS CORP MARTHA LAYNE COLLINS PRESIDENT MARTHA LAYNE COLLINS & ASSOCIATES AND PRESIDENT ST CATHARINE COLLEGE ALICE F EMERSON FELLOW ANDREW W MELLON FOUNDATION KARLHEINZ KASKE RETIRED PRESIDENT AND CEO SIEMENS AG KAY R WHITMORE CHAIRMAN AND CEO UNTIL A SUCCESSOR IS NAMED KODAK EARNEST W DEAVENPORT JR GROUP VICE PRESIDENT KODAK WILBUR J PREZZANO GROUP VICE PRESIDENT KODAK LEO JACK THOMAS GROUP VICE PRESIDENT KODAK SEE RELATED STORY KODAK SEEKS OUTSIDER TO BE CHAIRMAN CEO SEARCH FOR SAVVY MARKET COST CUTTER FOLLOWS DISMISSAL OF WHITMORE WSJ AUG 9 1993 9308090082 930809 SWISSAIR CARRIER'S LOSS WIDENED 8 FOR HALF PRICE WAR IS CITED SPECIAL TO THE WALL STREET JOURNAL ZURICH SWISSAIR SWITZERLAND'S SHAREHOLDEROWNED NATIONAL CARRIER REPORTED A FIRSTHALF NET LOSS FOR ITS AIRLINE OF 125 MILLION SWISS FRANCS 829 MILLION A DEFICIT 8 WIDER THAN THE YEAREARLIER PERIOD'S THE EFFECTS OF A PRICE WAR WERE BLAMED AIRLINE REVENUE EDGED UP 2 TO 247 BILLION FRANCS 164 BILLION FROM A RESTATED YEAREARLIER 242 BILLION FRANCS THE COMPANY WHICH DIDN'T PROVIDE CONSOLIDATED FIGURES SAID ITS AIRLINE DOESN'T EXPECT A TURNAROUND IN THE SECOND HALF SWISSAIR CITED AN ONGOING RUINOUS PRICE WAR IN THE INDUSTRY AND A SPOKESMAN ADDED THAT CONSUMER BEHAVIOR HAS BECOME INCREASINGLY DIFFICULT TO PREDICT GROSS PROFIT FOR THE HALF SLIPPED 25 TO 60 MILLION FRANCS FROM 80 MILLION FRANCS A YEAR EARLIER SWISSAIR'S PRODUCTION ROSE 4 AND OVERALL TRAFFIC VOLUME INCREASED 95 WHILE COSTS ROSE 3 OVERALL LOAD FACTOR THE PERCENTAGE OF AN AIRLINE'S AVAILABLE SEATS THAT ARE OCCUPIED ROSE TO 63 FROM A YEAREARLIER 59 THE COMPANY SAID KEEPING THE LID ON COSTS REMAINS A VITAL FACTOR AND ADDED THAT IT EXPECTS TO BENEFIT FROM THE ELIMINATION OF 1000 JOBS BY THE END OF THIS YEAR AS WELL AS FROM EXPANDED COOPERATION WITH DELTA AIR LINES SWISSAIR ALSO SAID IT HAS RECORDED SIZABLE BOOK PROFITS FROM THE SALE OF MD81 AIRCRAFT A TRANSACTION THAT WON'T BE TAKEN INTO ACCOUNT UNTIL THE END OF THE FINANCIAL YEAR TO DATE SIX MD81 PLANES HAVE BEEN SOLD AND THEN LEASED BACK THE COMPANY SAID AMONG ITS SUBSIDIARIES SWISSAIR SAID THE CROSSAIR REGIONAL AIRLINE SHOWED IMPROVEMENT IN THE FIRST HALF BUT ITS NEWLY MERGED CHARTER UNIT BALAIR/CTA REPORTED UNSATISFACTORY FIRSTHALF RESULTS BECAUSE OF CANCELLATIONS SWISSAIR ASSOCIATED COS REPORTED A 50 RISE IN BUSINESS VOLUME DUE TO EXPANSION IN THE CATERING BUSINESS 9308090081 930809 ECONOMY NAFTA NEGOTIATORS WORK ON DETAILS OF SIDE DEALS WASHINGTON US CANADIAN AND MEXICAN NEGOTIATORS WORKED TO HAMMER OUT DETAILS IN LABOR AND ENVIRONMENT SIDE DEALS TO THE NORTH AMERICAN FREE TRADE AGREEMENT BATTLING OVER SUCH ISSUES AS ENFORCEMENT TRADE MINISTERS FROM THE THREE COUNTRIES MET OVER THE WEEKEND IN LONG SESSIONS HERE WITH THE TALKS CONTINUING INTO LAST NIGHT US TRADE REPRESENTATIVE MICKEY KANTOR AND HIS CANADIAN AND MEXICAN COUNTERPARTS PLAN TO HOLD A NEWS BRIEFING TODAY A MEXICAN OFFICIAL SAID THERE IS SOME MOMENTUM US OFFICIALS FAMILIAR WITH THE TALKS EXPECT THE COUNTRIES TO AGREE ON TERMS FOR THE SIDE AGREEMENTS THIS WEEK DURING THE TALKS THE US HAS BEEN AT ODDS WITH CANADA AND MEXICO OVER THEIR RELUCTANCE TO ACCEPT TERMS UNDER WHICH COUNTRIES COULD IMPOSE TRADE SANCTIONS IF AN ARBITRATION PANEL RULES THAT ONE OF THE SIGNATORIES HASN'T ENFORCED ITS LABOR OR ENVIRONMENTAL LAWS US AND MEXICAN NEGOTIATORS ARE ALSO DISCUSSING PROPOSALS FOR FUNDING MECHANISMS TO FINANCE ENVIRONMENTAL CLEANUP AT THE TWO COUNTRIES' BORDER US OFFICIALS SAID THEY DON'T EXPECT DETAILS OF THE FUNDING MECHANISMS TO BE ESTABLISHED THIS WEEK BUT THEY PREDICTED THAT A FRAMEWORK WOULD BE WORKED OUT 9308090080 930809 BUSINESS BRIEF COLORADO AUTHORITIES PROBING TOUR CONCERN FOLLOWING COMPLAINTS DENVER THE BOULDER COUNTY COLO DISTRICT ATTORNEY'S OFFICE IS INVESTIGATING DESMOND ADVENTURES INC A BOULDERBASED TOUR COMPANY AFTER RECEIVING DOZENS OF COMPLAINTS FROM TRAVELERS WHO FEAR THEY LOST THOUSANDS OF DOLLARS ON TERMINATED TRIPS THE CUSTOMERS HAD BOOKED EUROPEAN CAR VACATIONS WITH THE TRAVEL GROUP AT A COST OF 3795 PER PERSON FOR 15 DAYS OF TOURING THE ALPS AND 2795 FOR EIGHT DAYS BUT ACCORDING TO THE COMPLAINTS THOSE TRIPS WERE CANCELED THE COMPANY SENT ITS CUSTOMERS A LETTER DATED JULY 30 BLAMING THE CANCELLATIONS ON A SERIES OF FINANCIAL DIFFICULTIES AND SAYING THAT PROSPECTS FOR REVIVING THE TOURS ARE BLEAK THE ONLY WAY WE ARE GOING TO BE ABLE TO RESCUE THIS SITUATION IS FOR THE COMPANY TO GAIN ACCESS TO SIGNIFICANT ADDITIONAL CAPITAL NOTED THE LETTER WHICH WAS SIGNED BY DESMOND ADVENTURES OWNER TOM DESMOND ALSO IN THE LETTER MR DESMOND STATED THAT UNDEPOSITED CHECKS WOULDN'T BE DEPOSITED AND RECOMMENDED THAT THOSE WHO PAID WITH CREDIT CARDS SHOULD EXPLORE ALL OPTIONS AVAILABLE TO YOU THROUGH YOUR CREDIT CARD COMPANY THE COMPANY DIDN'T OFFER IN THE LETTER TO REFUND ANY CHECKS ALREADY DEPOSITED OR CREDIT CARD FUNDS ALREADY RECEIVED SEVERAL EFFORTS TO REACH MR DESMOND BY THIS NEWSPAPER FAILED AN ATTORNEY FOR DESMOND SAID THAT THE COMPANY IS ATTEMPTING TO STRAIGHTEN OUT EVERYTHING AND THAT SOME CUSTOMERS HAVE RECEIVED PARTIAL REFUNDS HE SAID SEVERAL DESMOND ADVENTURES TOURS HAD BEEN CANCELED DUE TO PROBLEMS WITH HOTEL RESERVATIONS AND SCHEDULING HE SAID HE WAS UNAWARE OF ANY FINANCIAL DIFFICULTIES UNTIL THIS YEAR DESMOND ADVENTURES HAD APPARENTLY BEEN OPERATING FOR FIVE YEARS WITHOUT ANY CONSUMER COMPLAINTS SAID KAREN SWEENEY AN OFFICIAL IN THE BOULDER COUNTY CONSUMER AFFAIRS OFFICE SEVERAL CONSUMERS SAID THEY INITIALLY SAW ADVERTISEMENTS FOR DESMOND ADVENTURES IN THE WALL STREET JOURNAL AND OTHER NATIONAL PUBLICATIONS A JOURNAL SPOKESWOMAN SAID THE NEWSPAPER HAS RECEIVED SEVERAL COMPLAINTS FROM DESMOND CUSTOMERS AND IS FOLLOWING UP WITH ITS OWN INVESTIGATION 9308090079 930809 CLINTON'S ECONOMIC PACKAGE WITH SIGNATURE PRESIDENT WILL ERASE REAGAN'S LEGACY BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CLINTONOMICS IS COMING AFTER THE SENATE'S HIGHDRAMA 5150 APPROVAL FRIDAY PRESIDENT CLINTON'S ECONOMIC PROGRAM WILL BECOME LAW WITH HIS SIGNATURE THIS WEEK SIX MONTHS AFTER ITS UNVEILING THE MEASURE WILL RAISE TAXES ON THE WEALTHY AND CORPORATIONS TO UPEND THE TAXCUT POLICIES OF THE REAGAN ERA AND IT WILL TRIM DEFENSE MEDICARE AND OTHER PROGRAMS TO ACHIEVE 496 BILLION IN DEFICIT REDUCTION OVER FIVE YEARS AT THE SAME TIME THE MEASURE WILL PROVIDE BILLIONS OF DOLLARS IN TAX INCENTIVES FOR BUSINESSES AND THE POOR THE DAYS OF ENDLESS GRIDLOCK RISING DEFICITS AND TRICKLEDOWN ECONOMICS ARE OVER MR CLINTON ACCLAIMED FROM THE WHITE HOUSE AFTER THE SENATE VOTE THE DAYS OF ECONOMIC GROWTH AND REAL OPPORTUNITY FOR THE WORKING FAMILIES OF THIS COUNTRY HAVE BEGUN REPUBLICANS STOOD UNITED AGAINST TAX INCREASES AND VOWED TO PRESS THE ISSUE IN NEXT YEAR'S ELECTIONS SENATE GOP LEADER ROBERT DOLE SAID BEFORE THE VOTE ONE THING THIS BILL HAS DONE IS CLARIFY THE DIFFERENCE BETWEEN THE PHILOSOPHIES OF DEMOCRATS AND REPUBLICANS MUCH OF MR CLINTON'S ORIGINAL BLUEPRINT SURVIVED WITH SOME HIGHPROFILE EXCEPTIONS ON THE BUSINESS SIDE CONGRESS JETTISONED HIS PROPOSED INVESTMENT TAX CREDITS FOR BUSINESS AT THE URGING OF CORPORATIONS AND INSTEAD CUT IN HALF HIS PROPOSED INCREASE IN THE 34 CORPORATE RATE SETTING IT AT JUST 35 OTHER BUSINESS INCENTIVES AND SOCIAL INITIATIVES WERE SCALED BACK AND IN THE FIGHT THAT DOMINATED CONGRESS'S FOURMONTH DELIBERATIONS MR CLINTON'S PROPOSED BROADBASED ENERGY TAX WAS REPLACED WITH A MODEST 43CENTAGALLON INCREASE FOR GASOLINE AND OTHER TRANSPORTATION FUELS THAT TAKES EFFECT OCT 1 AS IN THE HOUSE THE SENATE OUTCOME WAS IN DOUBT TO THE END FRIDAY'S VOTE FOLLOWED A DAY IN WHICH A DEMOCRAT SEN ROBERT KERREY KEPT THE PRESIDENT HIS PARTY AND PACKS OF REPORTERS IN SUSPENSE ABOUT HOW HE WOULD VOTE THE NEBRASKAN ONCE A RIVAL OF MR CLINTON'S FOR THE PRESIDENCY ANNOUNCED ONLY 1 1/2 HOURS BEFORE THE VOTE THAT HE INTENDED RELUCTANTLY TO VOTE YES FROM THE SENATE FLOOR HE SAID PRESIDENT CLINTON IF YOU ARE WATCHING NOW AS I SUSPECT YOU ARE I COULD NOT AND WOULD NOT CAST A VOTE THAT WOULD BRING DOWN YOUR PRESIDENCY THE SENSE THAT POLITICAL RUIN COULD FOLLOW IF THE BILL FAILED NOT ONLY FOR THE PRESIDENT BUT FOR HIS ENTIRE PARTY MORE THAN ANY OTHER FACTOR EXPLAINS MR CLINTON'S SUCCESS GIVEN THE UNPOPULARITY OF THE PRESIDENT AND HIS PLAN THE VICTORY ALSO OWES MUCH TO THE EFFORTS OF SENATE MAJORITY LEADER GEORGE MITCHELL AND THE HOUSE LEADERS SPEAKER THOMAS FOLEY AND MAJORITY LEADER RICHARD GEPHARDT TO KEEP JUST ENOUGH DEMOCRATS IN LINE ACCORDING TO CONGRESSIONAL ANALYSTS THE BILL WILL INCREASE TAXES BY A NET 241 BILLION OVER FIVE YEARS AND CUT SPENDING BY 255 BILLION COUNTED AS SPENDING CUTS ARE 102 BILLION THAT WILL BE SAVED BY FREEZING SPENDING MOSTLY ON DEFENSE NEARLY 56 BILLION IN REDUCTIONS FROM PROJECTED MEDICARE INCREASES OVER THE NEXT FIVE YEARS 71 BILLION FROM MEDICAID AND 65 BILLION THAT OTHERWISE WOULD BE PAID AS INTEREST ON DEBT IF THE DEFICIT WENT UNRESTRAINED OTHER PROVISIONS ARE AIMED AT GETTING 102 BILLION MORE FROM AUCTIONING THE PUBLIC RADIO SPECTRUM FOR COMMERCIAL USE AND 43 BILLION BY A PARTIAL SHIFT TO DIRECT GOVERNMENT LENDING FOR STUDENT LOANS AT THE END OF THE FIFTH YEAR IN FISCAL 1998 THE DEFICIT WILL BE A PROJECTED 213 BILLION WITHOUT ACTION IT WAS ESTIMATED TO BE 361 BILLION COMPLICATING THE PRESIDENT'S AND CONGRESSIONAL LEADERS' JOB OF CORRALLING ENOUGH DEMOCRATIC VOTES WAS THE PUBLIC'S CONTINUED MISUNDERSTANDING OF THE BILL POLLS SHOWED THAT TWOTHIRDS OF THE PUBLIC BELIEVES THE MIDDLE CLASS WILL BEAR THE BURDEN OF THE PACKAGE THROUGH TAX INCREASES IN FACT THE MIDDLE CLASS WILL SEE ONLY A 1 INCREASE IN ITS TAXES ON AVERAGE MAINLY BECAUSE OF THE GASOLINE TAX RISE WORKERS MAKING LESS THAN 30000 A YEAR ARE IN LINE FOR A TAX CUT THANKS TO A MAJOR EXPANSION OF THE EARNEDINCOME TAX CREDIT THAT WILL COST ABOUT 21 BILLION OVER FIVE YEARS THE CREDIT WOULD BE AVAILABLE NOT ONLY TO WORKERS WITH CHILDREN BUT ALSO TO INDIVIDUALS WITHOUT CHILDREN IN CONTRAST PEOPLE EARNING MORE THAN 200000 ANNUALLY WILL PAY AN AVERAGE OF 174 MORE IN TAXES THE TOP MARGINAL RATE WILL RISE TO 36 FROM 31 FOR COUPLES MAKING MORE THAN 140000 IN TAXABLE INCOME 115000 FOR INDIVIDUALS AND TO 396 FOR THOSE MAKING MORE THAN 250000 ANNUALLY THE 145 MEDICARE PAYROLL TAX WILL APPLY TO ALL INCOME CURRENTLY IT DOESN'T APPLY BEYOND 135000 TOGETHER THOSE TAX CHANGES WOULD RAISE NEARLY 145 BILLION OVER FIVE YEARS THE HIGHER RATES WILL TAKE EFFECT RETROACTIVELY TO JAN 1 AND REPUBLICANS SEIZED ON THAT ISSUE WITH SOME SUCCESS IN THE FINAL DAYS BEFORE THE VOTE LAWMAKERS REPORTED NUMEROUS COMPLAINTS FROM CONSTITUENTS MOST OF WHOM WOULDN'T BE AFFECTED UNDER THE BILL 985 OF TAXPAYERS WILL SEE NO INCOMETAX BOOST BY A PARTYLINE 5644 VOTE THE SENATE REJECTED A GOP MOVE CHALLENGING THE CONSTITUTIONALITY OF THE RETROACTIVE RATE INCREASES DEMOCRATS COUNTERED THAT TAX INCREASES OFTEN HAVE BEEN RETROACTIVE INCLUDING SOME PASSED WHEN SEN DOLE WAS CHAIRMAN OF THE TAXWRITING SENATE FINANCE COMMITTEE NEARLY 13 OF SOCIAL SECURITY RECIPIENTS WILL PAY HIGHER TAXES ON THOSE BENEFITS STARTING NEXT YEAR FOR COUPLES WITH ANNUAL INCOME OF AT LEAST 44000 AND INDIVIDUALS WITH AT LEAST 34000 COUNTING HALF OF THEIR SOCIAL SECURITY PAYMENTS 85 OF BENEFITS WILL BE TAXABLE UP FROM 50 ABOUT 12 BILLION WILL BE SAVED OVER FIVE YEARS IN THE GOVERNMENT'S RETIREMENT PROGRAM FOR MILITARY AND CIVILIAN RETIREES MOSTLY BY ELIMINATING AN OPTION TO TAKE BENEFITS IN A LUMP SUM ALSO THE PAYMENT DATE FOR COSTOFLIVING INCREASES WILL BE PUSHED FORWARD SEVERAL MONTHS BESIDES THE CORPORATE TAX INCREASE THE MEASURE WILL CURB A NUMBER OF BUSINESS CREDITS OR DEDUCTIONS STARTING NEXT YEAR BUSINESSES CAN DEDUCT ONLY HALF OF THE COST OF BUSINESS MEALS AND ENTERTAINMENT DOWN FROM 80 AND DEDUCTIONS FOR BUSINESSES' CLUB DUES SPOUSE AND DEPENDENTS' TRAVEL SOME MOVING EXPENSES EXECUTIVE COMPENSATION IN EXCESS OF 1 MILLION AND LOBBYING EXPENSES WILL BE LIMITED OR SCRAPED THE LAW WILL REDUCE THE AMOUNT OF COMPENSATION TAKEN INTO ACCOUNT FOR DETERMINING PENSION PLANS BUT BUSINESSES GOT BREAKS AS WELL STARTING THIS YEAR SMALL BUSINESSES CAN WRITE OFF AS MUCH AS 17500 FOR EQUIPMENT SUCH AS VEHICLES AND COMPUTERS PURCHASED DURING THE YEAR THAT'S UP FROM 10000 CORPORATIONS THAT PAY THE ALTERNATIVE MINIMUM TAX GET TAX RELIEF AND THE 28 CAPITALGAINS TAX RATE WILL BE HALVED FOR INVESTORS WHO HOLD NEW ASSETS IN CERTAIN STARTUP COMPANIES AT LEAST FIVE YEARS THE REALESTATE INDUSTRY AND PARTICULARLY BIG DEVELOPERS WILL BE AMONG THE BIGGEST WINNERS WITH NEW DEDUCTIONS FOR PASSIVE LOSSES ON RENTAL PROPERTY THERE ARE ALSO PROVISIONS TO ENCOURAGE PENSION MANAGERS TO INVEST IN REAL ESTATE AND TO DEFER SOME TAXES FOR DEVELOPERS WHO RENEGOTIATE LOANS ON TROUBLED PROPERTIES TO HELP OFFSET THE COST OF THE BREAKS THE DEPRECIATION TIME FOR COMMERCIAL REAL ESTATE WILL BE EXTENDED TO 39 YEARS UP FROM 31 1/2 YEARS THE BILL MAKES PERMANENT SOME TAX BENEFITS GIVING FAVORABLE TREATMENT FOR INDIVIDUALS' DONATIONS OF APPRECIATED PROPERTY TO CHARITIES AND PROVIDING INCENTIVES FOR ISSUING BONDS FOR SMALL MANUFACTURING FACILITIES FARMS AND MORTGAGES TO LOWERAND MIDDLEINCOME PEOPLE IT WILL EXTEND THROUGH 1994 SOME INCENTIVES FOR HIRING THE DISADVANTAGED AND PAYING EMPLOYEES' EDUCATION COSTS A TAX CREDIT FOR BUSINESS RESEARCH COSTS IS EXTENDED THROUGH MID1995 THE LAW WILL IMMEDIATELY ALLOW BUSINESSES TO WRITE OFF OVER 15 YEARS THE VALUE OF INTANGIBLE ASSETS ACQUIRED IN TAKEOVERS OR MERGERS INCLUDING CUSTOMER LISTS AND THE SOCALLED GOODWILL THAT REPRESENTS THE WORTH OF A COMPANY'S REPUTATION SHORTER AMORTIZATION PERIODS ARE PROVIDED FOR MOVIE AND BOOK RIGHTS SPORTS FRANCHISES SOME SOFTWARE AND PURCHASED MORTGAGESERVICING RIGHTS AN UNPOPULAR THREEYEAROLD LUXURY TAX IS REPEALED FOR YACHTS PRIVATE AIRCRAFT EXPENSIVE JEWELRY AND FURS INCLUDING THOSE ALREADY PURCHASED THIS YEAR THE 10 TAX STILL APPLIES TO LUXURY AUTOS COSTING 30000 OR MORE AND IN RESPONSE TO US AUTO MAKERS THAT PRICE THRESHOLD WILL CONTINUE TO RISE SO THAT THE LEVY MOSTLY HITS FOREIGN MODELS AMID SPENDING REDUCTIONS AND TAX INCREASES THE BILL ACCOMMODATES SOME OF MR CLINTON'S HUMAN INVESTMENT AGENDA BESIDES THE EXPANDED TAX CREDIT FOR THE WORKING POOR OVER FIVE YEARS IT PROVIDES 35 BILLION IN TAX BREAKS AND SOCIAL SPENDING TO DRAW INVESTORS TO THE SOCALLED EMPOWERMENT ZONES 1 BILLION FOR FAMILYWELFARE PROGRAMS NEARLY 600 MILLION FOR CHILDHOOD IMMUNIZATIONS AND 25 BILLION TO EXPAND THE FOOD STAMP PROGRAM MISCELLANEOUS TAX CHANGES OTHER PROVISIONS IN THE BILL WILL LIMIT A CREDIT FOR COMPANIES OPERATING IN PUERTO RICO RAISE TAXES ON SECURITIES FIRMS BY 38 BILLION OVER THE NEXT FIVE YEARS BY REQUIRING THEM TO ASSESS THEIR INVENTORIES AT MARKET VALUE INSTEAD OF THE ORIGINAL BOOK VALUE STARTING NEXT YEAR PROHIBIT BUYERS OF FAILED THRIFTS FROM DEDUCTING LOSSES FOR WHICH THEY HAVE ALREADY BEEN COMPENSATED BY THE GOVERNMENT RETROACTIVE TO MARCH 4 1991 THE DATE OF A TREASURY DEPARTMENT WARNING EXPEDITE AND SIMPLIFY THE QUARTERLY ESTIMATED TAX PAYMENTS FOR INDIVIDUALS AND CORPORATIONS BEGINNING IN 1994 REPEAL THE SOCALLED STOCKFORDEBT EXCEPTION THAT BENEFITS COMPANIES FACING BANKRUPTCY EFFECTIVE IN 1995 EXTEND THE TOP TWO RATES FOR ESTATE AND GIFT TAXES AT 53 AND 55 THE RATES HAD BEEN SCHEDULED TO FALL TO 50 THIS YEAR LIMIT THE TAX CREDIT FOR FOREIGN INCOME FROM OIL GAS AND SHIPPING BOOST PENALTIES FOR MULTINATIONAL FIRMS THAT MANIPULATE PRICES OF THEIR US AND FOREIGN ASSETS TO EVADE TAXES PERMANENTLY EXTEND A VACCINE EXCISE TAX 9308090078 930809 SHOWA SHELL SAYS UNCONSOLIDATED NET FELL 53 IN FIRST HALF SPECIAL TO THE WALL STREET JOURNAL TOKYO SHOWA SHELL SEKIYU KK REPORTED A 53 DECLINE IN UNCONSOLIDATED NET PROFIT FOR THE SIX MONTHS ENDED JUNE 30 DUE TO THE LIQUIDATION OF LATENT LOSSES FROM MISHANDLING OF FORWARD CURRENCY TRADING THE OIL REFINER AND DISTRIBUTOR WHICH IS 50OWNED BY ROYAL DUTCH/SHELL GROUP SAID UNCONSOLIDATED NET FELL TO 512 BILLION YEN 492 MILLION FROM 1080 BILLION YEN A YEAR EARLIER PRETAX PROFIT TOTALED 1827 BILLION YEN DOWN 21 FROM 1866 BILLION YEN SALES FELL 24 TO 74613 BILLION YEN FROM 76484 BILLION YEN UNCONSOLIDATED RESULTS ARE THOSE OF THE PARENT ALONE CONSOLIDATED RESULTS INCLUDE THOSE OF SUBSIDIARIES THE COMPANY SAID ITS NET PROFIT REFLECTED A 5980 BILLION YEN EXTRAORDINARY LOSS UP FROM 82500 MILLION YEN IN THE SAME PERIOD A YEAR EARLIER OF THAT AMOUNT 539 BILLION YEN CAME FROM THE LIQUIDATION OF ITS FAILED CURRENCY TRADING PRACTICES WHILE ANOTHER 55 BILLION YEN CAME FROM RELATED CURRENCY OPTION COSTS SHOWA ALSO REPORTED A JUMP IN EXTRAORDINARY PROFIT TO 4971 BILLION YEN FROM 122 BILLION YEN A YEAR AGO STEMMING FROM SALES OF PROPERTY AND SECURITIES ASSETS 9308090077 930809 CLINTON'S ECONOMIC PACKAGE MUDDLED RULE ON TROUBLED ASSETS ILLUSTRATES THE POLITICS OF TAX LAW BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IF YOU'RE STUCK WITH FINANCIALLY TROUBLED ASSETS CONGRESS WANTS THE TAX CODE TO HELP YOU MORE THAN IT USED TO THAT IS EXCEPT WHEN CONGRESS WANTS THE TAX CODE TO HELP LESS THAN IT USED TO SUCH IS THE MUDDLED MESSAGE OF THE DEFICITREDUCTION BILL INCLUDED IN THE LEGISLATION IS ONE PROVISION THAT WOULD GIVE OWNERS OF TROUBLED REAL ESTATE FAVORABLE TAX TREATMENT WHEN RENEGOTIATING DEBT WITH BANKS THE OSTENSIBLE MOTIVE IS TO ENCOURAGE DEBTORS TO WORK OUT PROBLEM LOANS AND AVOID FORECLOSURE IT'S GENERALLY A LASTDITCH THING SAYS LINDA GOOLD TAX COUNSEL AT THE NATIONAL ASSOCIATION OF REALTORS WHICH PUSHED FOR THE RELIEF YET AT THE SAME TIME THE BILL INCLUDES ANOTHER LITTLENOTICED PROVISION THAT WOULD ELIMINATE A TAX BREAK FOR BANKRUPT FIRMS THAT GIVE CREDITORS STOCK IN EXCHANGE FOR WIPING OUT THEIR DEBT BANKRUPTCY LAWYERS AND ACCOUNTANTS SAY THAT FOR YEARS INSOLVENT COMPANIES HAVE USED THIS APPROACH TO FACILITATE WORKOUTS AND AVOID LIQUIDATION STOCKFORDEBT TRANSACTIONS HAVE PLAYED A ROLE IN MANY CELEBRATED REORGANIZATIONS INCLUDING ONES AT CONTINENTAL AIRLINES AND FEDERATED DEPARTMENT STORES INC IN MANY EYES THIS INCONSISTENCY ILLUSTRATES HOW TAX LEGISLATION IS DRIVEN MORE BY POLITICS THAN BY POLICY TO SOME IT ALSO SHOWS HOW THE LOBBYING GROUPS WITH THE MOST CLOUT ARE THE ONES THAT USUALLY WIN THE REALITY IS THAT THE REAL ESTATE LOBBY IS POWERFUL SAYS KEN GIDEON A WASHINGTON LAWYER AND FORMER TOP TREASURY TAX OFFICIAL UNDER PRESIDENT BUSH THERE ARE A LOT OF REAL ESTATE FIRMS AND EVERY CONGRESSMAN HAS ONE THE STOCKFORDEBT PROVISION IS PROJECTED TO BRING IN 315 MILLION OVER FIVE YEARS THE REAL ESTATE PROVISION IS ESTIMATED TO COST 366 MILLION OVER THE SAME SPAN NEITHER WAS PART OF THE ORIGINAL PACKAGE PROPOSED BY PRESIDENT CLINTON LAWMAKERS ADDED BOTH ON THEIR OWN THE TWO ITEMS AREN'T PERFECTLY COMPARABLE THE REAL ESTATE RELIEF IS AIMED AT INDIVIDUALS AND PARTNERSHIPS WHEREAS THE STOCKFORDEBT MANEUVER IS USED BY CORPORATIONS MOREOVER A TAXFAVORED STOCKFORDEBT SWAP CAN ONLY BE USED BY FIRMS THAT ARE INSOLVENT OR BANKRUPT THE REAL ESTATE PROVISION BY CONTRAST IS DESIGNED EXPLICITLY FOR THE OWNERS OF TROUBLED PROPERTY WHO AREN'T IN SUCH DIRE CONDITION IN THE END THE CHANGES IN THE LAW WILL BRING REAL ESTATE OWNERS AND BANKRUPT COMPANIES TO SOMETHING OF THE SAME PLACE WHILE LOSING THE TAX BREAK FOR STOCKFORDEBT SWAPS BANKRUPT COMPANIES STILL WILL BE ABLE TO DEFER TAXES ON INCOME DERIVED FROM RESTRUCTURING THEIR DEBT THE SAME RIGHT THAT OWNERS OF PROBLEM REAL ESTATE ARE GAINING IN THAT SENSE YOU'RE NOW TREATING THEM EXACTLY ALIKE SAYS DANIEL HALPERIN A GEORGETOWN UNIVERSITY LAW PROFESSOR WHO SERVED AS A SENIOR TREASURY TAX OFFICIAL IN THE CARTER ADMINISTRATION STILL MR HALPERIN ALSO SEES A PHILOSOPHICAL INCONSISTENCY IN HOW CONGRESS CAME TO THIS POINT TAX POLICY PURISTS CONTEND THAT DEBT FORGIVENESS ALWAYS SHOULD BE TREATED AS THE RECEIPT OF INCOME AND THEREFORE SUBJECT TO TAXATION TO THEM ELIMINATING THE STOCKFORDEBT PROVISION IS A STEP IN THE RIGHT DIRECTION BY THE SAME TOKEN THEY CONSIDER THE REAL ESTATE RELIEF A STEP IN THE WRONG DIRECTION OF COURSE THOSE INTERESTED IN TURNING AROUND BELEAGUERED INDUSTRIES CAN MAKE THE CASE FOR SPECIAL ASSISTANCE FOR YEARS THE REAL ESTATE LOBBY HAS BEEN PRESSING HARD FOR ALL SORTS OF TAX BREAKS AND HANDING OUT PLENTY OF MONEY TO HELP MAKE THEM HAPPEN IN THE LAST ELECTION CYCLE THE INDUSTRY GAVE 39 MILLION IN CAMPAIGN CONTRIBUTIONS ACCORDING TO A STUDY BY THE CENTER FOR RESPONSIVE POLITICS THE POLITICAL ACTION COMMITTEE AT THE NATIONAL ASSOCIATION OF REALTORS SUPPLIED 29 MILLION OF THAT MORE THAN ANY OTHER SINGLE PAC IN ANY INDUSTRY DEBT RELIEF WAS HARDLY THE ONLY GOODY FOR REAL ESTATE IN THE DEFICITREDUCTION BILL EVEN MORE IMPORTANT TO THE INDUSTRY IS A PROVISION THAT PROVIDES PASSIVE LOSS DEDUCTIONS FOR REAL ESTATE PROFESSIONALS THE BREAKS ARE PAID FOR BY EXTENDING THE DEPRECIATION PERIOD FOR COMMERCIAL PROPERTY TO 39 YEARS FROM 31 YEARS YOU LOOK AT THIS TAX BILL AND YOU SEE THAT THE THEME REALLY IS SHARED SACRIFICE SAYS ROBERT WILLENS AN ANALYST AT LEHMAN BROTHERS BUT FRANKLY THE ONE GROUP THAT IS BENEFITING ALMOST UNIFORMLY IS REAL ESTATE THOSE WHO FOUGHT TO KEEP THE STOCKFORDEBT RULES INTACT AREN'T A MEEK BUNCH EITHER THEY INCLUDE AN ALLIANCE OF MAJOR BANKS ACCOUNTING FIRMS AND LABOR UNIONS WHICH FEAR THAT TAKING AWAY THE TAX BREAK WILL FORCE SOME COMPANIES TO GO UNDER AND LEAD TO A LOSS OF JOBS BUT UNLIKE THE REAL ESTATE PROVISION STOCKFORDEBT CAME UP AT THE LAST MINUTE AS THE SENATE STRUGGLED TO FIND MORE REVENUE ALL OF A SUDDEN IT WAS WHAMO SAYS SHELDON HARRIS A WASHINGTON BANKING ATTORNEY LAWMAKERS EVENTUALLY AGREED IN THE FINAL VERSION OF THE BILL TO DELAY THE CHANGED STOCKFORDEBT RULES UNTIL 1995 BUT EVEN SO SOME FEAR THE FALLOUT WILL BE SEVERE THE NET RESULT IS GOING TO BE TO ENCOURAGE MORE LIQUIDATING BANKRUPTCIES AND FEWER REORGANIZATIONS ASSERTS GORDON HENDERSON A PROMINENT NEW YORK TAX LAWYER 9308090076 930809 CHINA MOVES TO TAMP DOWN STEEL DEMAND PRICES DROP BUT SLOWDOWN HELPS BEIJING'S EFFORTS TO COOL ITS ECONOMY BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG SQUEEZED BY BEIJING'S AUSTERITY PROGRAM CHINESE COMPANIES ARE CURBING THEIR HUGE APPETITE FOR STEEL AND CANCELING ORDERS DEPRESSING STEEL PRICES ON THE INTERNATIONAL MARKET THOUGH IT IS BAD NEWS FOR STEELMAKERS BEIJING SEES THE SLOWDOWN AS A WELCOME SIGN THAT ITS EFFORTS TO TIGHTEN CREDIT AND COOL THE SIZZLING ECONOMY ARE HAVING SOME IMPACT SINCE JUNE VICE PREMIER ZHU RONGJI HAS CRACKED DOWN ON SPECULATIVE PROPERTY AND STOCK TRADING IN AN EFFORT TO RESTRAIN A BORROWING SPREE THAT HAS DRAINED THE BANKING SYSTEM OF FUNDS AND HELPED FUEL INFLATION EXCEEDING 17 IN MAJOR CITIES FALLING ORDERS FOR STEEL MUCH OF WHICH IS USED IN CONSTRUCTION SUGGEST THAT MR ZHU'S ORDERS ARE AFFECTING THE PROPERTY MARKET THE ABRUPT SLOWDOWN IN DEMAND BY ONE OF THE WORLD'S LARGEST STEEL BUYERS IS CAUSING UNCLAIMED STOCKS TO PILE UP AND PRICES OF STEEL BARS AND RODS IN THE REGION HAVE FALLEN MORE THAN 5 OVER THE PAST TWO MONTHS TRADERS SAY CHINA'S BEEN THE SINGLE MAJOR FACTOR THAT BROUGHT UP STEEL BAR PRICES LAST YEAR SAYS HAFIDZAH HASSAN AN ANALYST AT KLEINWORT BENSON SECURITIES ASIA LTD NOW WITH A NINE TO 12MONTH SLOWDOWN IN SIGHT PRICES ARE FALLING AND WILL CONTINUE TO DO SO PROVINCIAL COMPANIES AND SPECULATIVE TRADERS APPEAR TO BE RESPONSIBLE FOR MANY OF CHINA'S CANCELED ORDERS SO FAR BESIDES SUCH USERS AS CONSTRUCTION COMPANIES AND FACTORIES MANY SMALLER CONCERNS AND EVEN SOME CITIES AND TOWNS HAD BEGUN SPECULATING IN STEEL TRADERS SAY CHINESE BANKERS SAY BEIJING HASN'T PUT A CAP ON STEEL IMPORTS BUT THESE SMALLER PLAYERS ARE FINDING THAT FINANCING IS MUCH HARDER TO OBTAIN EVEN LARGE TRADING HOUSES SUCH AS CHINA NATIONAL METALS & MINERALS IMPORT & EXPORT CORP OR MINMETALS AND CHINA RESOURCES GROUP HAVE ASKED FOR SHIPMENT DELAYS OR CANCELED ORDERS STEEL TRADERS SAY IN SOME INSTANCES THEY ADD THE CHINESE TRADERS USE TECHNICAL DISCREPANCIES AS A PRETEXT FOR CANCELING ORDERS CASHPOOR CHINESE BANKS HAVE AGGRAVATED THE PROBLEM BESIDES IMPOSING MORE STRINGENT REQUIREMENTS FOR OPENING LETTERS OF CREDIT EVEN SUCH MAJOR INSTITUTIONS AS BANK OF CHINA AND INDUSTRIAL & COMMERCIAL BANK OF CHINA ARE DELAYING PAYMENTS ON LETTERS OF CREDIT FOR AS LONG AS SEVERAL MONTHS STEEL TRADERS SAY LIKE THE CHINESE TRADING HOUSES THE BANKS OFTEN CITE TECHNICAL REASONS BUT SOME BANKS AND OPENERS OF LETTERS OF CREDIT HAVE TOLD US THAT THERE'S JUST NO MONEY IN THE BANKS SAYS ONE HONG KONG STEEL TRADER HE ADDS THAT HE EXPECTS THE SITUATION TO IMPROVE AFTER AUG 15 MR ZHU'S DEADLINE FOR BANKS TO BALANCE THEIR BOOKS FOR OFFICIAL INSPECTION OTHERS AREN'T SO SANGUINE WHILE CHINA'S STEEL IMPORTS FOR THE FIRST FIVE MONTHS OF THIS YEAR HIT 847 MILLION TONS UP FROM 719 MILLION TONS FOR ALL OF 1992 SOME ANALYSTS EXPECT THE SLOWDOWN TO CONTINUE UNTIL EARLY OR MID1994 CHINA'S IMPORTS FOR THE YEAR ARE EXPECTED TO REACH 11 MILLION TONS BUT KLEINWORT'S MS HASSAN SAYS WEAK DEMAND COULD STILL CAUSE STEEL PRICES TO FALL AT LEAST ANOTHER 5 THIS YEAR SUCH A DROP WOULD STILL LEAVE PRICES SUBSTANTIALLY HIGHER THAN IN MID1992 WHEN THEY REACHED THEIR LOWEST LEVEL IN SEVERAL YEARS FOR NOW JAPANESE STEELMAKERS CHINA'S PRIMARY SUPPLIERS ARE PREPARING FOR THE WORST SIX MAJOR JAPANESE STEEL MILLS CONTRACTED TO PROVIDE 392 MILLION TONS OF STEEL TO MINMETALS FOR THE FIRST HALF BUT MASANORI SUZUKI GENERAL MANAGER OF NKK CORP'S HONG KONG OFFICE PREDICTS THAT SECONDHALF SALES VOLUME TO MINMETALS WILL FALL AT LEAST 50 FROM THE FIRSTHALF LEVEL THE JAPANESE STEEL MARKET WAS ONLY SAVED BY CHINA'S BOOM BUT NOW THE CHINESE MARKET IS SLUMPING LIKE THE REST OF THE WORLD LAMENTS MR SUZUKI 9308090075 930809 NATIONAL MEDICAL REVAMPS LEGAL OFFICE AFTER POWERS RETIRES SANTA MONICA CALIF NATIONAL MEDICAL ENTERPRISES INC REVAMPED ITS LEGAL DEPARTMENT FOLLOWING THE RETIREMENT OF MARCUS E POWERS SENIOR VICE PRESIDENT AND GENERAL COUNSEL THE HOSPITAL COMPANY NAMED SCOTT BROWN 47 YEARS OLD SENIOR VICE PRESIDENT AND ASSOCIATE GENERAL COUNSEL AS ACTING GENERAL COUNSEL A SPOKESMAN FOR NATIONAL MEDICAL DECLINED TO COMMENT ON WHEN IT WOULD NAME A PERMANENT SUCCESSOR TO MR POWERS 64 WHOSE RETIREMENT WAS THE LATEST IN A SERIES OF HIGHLEVEL DEPARTURES FROM THE TROUBLED COMPANY MARC POWERS INDICATED THAT HE THOUGHT IT BEST FOR NME THAT I BE ABLE TO STRUCTURE MY OWN LEGAL TEAM JEFFREY C BARBAKOW NATIONAL MEDICAL'S NEW CHAIRMAN AND CHIEF EXECUTIVE SAID IN A NEWS RELEASE NATIONAL MEDICAL ALSO NAMED JOHN MEYERS 47 SENIOR VICE PRESIDENT AND ASSOCIATE GENERAL COUNSEL SPECIAL COUNSEL TO THE CHIEF EXECUTIVE'S OFFICE IN ADDITION THE COMPANY SAID IT HAS SHIFTED OVERSIGHT OF MAJOR LITIGATION TO AN OUTSIDE ATTORNEY JOHN SPIEGEL A PARTNER AT THE LOS ANGELES LAW FIRM MUNGER TOLLES & OLSON WILL SUPERVISE LEGAL PROBLEMS THAT INCLUDE PENDING GOVERNMENT INVESTIGATIONS AND LAWSUITS BY A NUMBER OF INSURANCE COMPANIES OVER 1 BILLION IN ALLEGEDLY FRAUDULENT CLAIMS THE SHAKEUP DOESN'T SIGNAL A CHANGE IN NATIONAL MEDICAL'S LEGAL STRATEGY THE SPOKESMAN SAID ADDING THAT MSSRS BROWN AND MEYERS WOULD FOCUS ON DAYTODAY LEGAL CONCERNS WE HAVE SIGNIFICANT LITIGATION AND WE THINK IT WILL ASSIST EFFORTS TO HAVE A SINGLE INDIVIDUAL COORDINATING A RESPONSE TO IT HE SAID 9308090074 930809 HEARD ON THE STREET THE IPO BOOM SELLING A SMALL NUMBER OF SHARES SHOWS SOME BIG SUCCESSES BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL RX FOR A SUCCESSFUL PUBLIC OFFERING SELL A SMALL AMOUNT OF STOCK IN A HOT NAME PRICED TO MOVE THAT SIMPLE FORMULA HAS SOMETIMES BEEN MISSING IN WALL STREET'S TWOYEAR OLD IPO BOOM BUT IT SURE WORKED FOR MERRILL LYNCH'S OFFERING OF DRUG CHAIN ECKERD CORP THE STOCK CLOSED AT 14 7/8 FRIDAY ITS FIRST DAY OF TRADING UP 7/8 FROM ITS OFFERING PRICE ON VOLUME OF 17 MILLION SHARES MERRILL LYNCH WAS SO EAGER TO PUSH THE SHARES OUT THE DOOR THAT THE 14 OFFERING PRICE WAS 2 BELOW THE LOWEST ESTIMATES PRIOR TO THE SALE AT THIS PRICE ECKERD'S NEW SHAREHOLDERS MAY MAKE OUT AS WELL AS THE ORIGINAL HOLDERS WHICH CONSIST PRINCIPALLY OF MERRILL AND ITS AFFILIATED BUYOUT FUNDS MERRILL EMPLOYEES AND COINVESTORS OWN A MAJORITY OF ECKERD IN A SERIES OF LIMITED PARTNERSHIPS AS A RESULT OF A 154 BILLION LEVERAGED BUYOUT IN 1986 MERRILL ALSO LED LAST WEEK'S SALE OF 45 MILLION SHARES A MERE 146 OF THE STOCK NOW OUTSTANDING THE OFFERING RAISED ONLY 63 MILLION WHY BOTHER BECAUSE THE OFFERING IS CRITICAL TO MERRILL LYNCH FOR ANOTHER REASON MERRILL ANNOUNCED IN MAY ITS PLAN TO LIQUIDATE THE LEVERAGED BUYOUT FUNDS MANAGED BY ITS AFFILIATE MERRILL LYNCH CAPITAL PARTNERS AMONG THE LARGEST BUYOUT FUNDS ON WALL STREET AFTER THE OFFERING MERRILL'S PARTNERSHIPS WILL STILL OWN 48 OF ECKERD'S STOCK THE OFFERING ESTABLISHES A VALUE FOR THEIR HOLDINGS SAYS ROBERT NATALE DIRECTOR OF INITIAL PUBLIC OFFERINGS AT STANDARD & POOR'S IT IS PART AND PARCEL OF AN EXIT STRATEGY RECENTLY THE EXITS HAVEN'T BEEN SO EASY TO FIND LAST MONTH'S PLANNED SALE OF SHARES IN PATHMARK THE SUPERMARKET CHAIN MERRILL LYNCH CAPITAL PARTNERS ACQUIRED IN A 2 BILLION LEVERAGED BUYOUT IN 1987 WAS PULLED WHEN MERRILL COULDN'T GET ITS 15ASHARE ASKING PRICE MANAGEMENT AT SUPERMARKETS GENERAL CORP PATHMARK'S PARENT ATTRIBUTED THE DECISION TO A SECONDQUARTER STRIKE THAT DEPRESSED EARNINGS BY 11 MILLION BUT INVESTORS MAY ALSO HAVE BALKED AT PAYING UP FOR THE GROCER RIGHT AFTER A 600 MILLION WRITEOFF OF ACQUISITIONRELATED GOODWILL THE WRITEOFF INDICATED HOW DISAPPOINTING PATHMARK'S OPERATING INCOME WILL LIKELY CONTINUE TO BE IN EFFECT AN ADMISSION OF HOW MUCH MERRILL OVERPAID SAYING OPERATING INCOME STINKS IS NOT AN ADMISSION YOU WANT TO MAKE IN AN IPO SAYS ROBERT WILLENS LEHMAN BROTHERS' TAX AND ACCOUNTING SPECIALIST WHO HIGHLIGHTED PATHMARK'S UNUSUAL WRITEOFF IN A RECENT REPORT THE OUTLOOK FOR ECKERD IS SOMEWHAT ROSIER STANDARD & POOR'S WHICH USUALLY DISPARAGES MOST INITIAL PUBLIC OFFERINGS GUSHES ABOUT THE DRUG CHAIN'S PROSPECTS IN A RECENT REPORT TO CLIENTS ECKERD IS ONE OF THE LOWEST COST OPERATORS AMONG THE DRUG RETAILERS SAYS S&P'S MR NATALE THAT'S IMPORTANT BECAUSE PRESCRIPTION DRUGS MORE THAN HALF OF ECKERD'S SALES VOLUME ARE INCREASINGLY BOUGHT THROUGH SOCALLED THIRDPARTY PAYERS THIRDPARTY PAYERS INCLUDE INSURANCE COMPANIES HEALTH MAINTENANCE ORGANIZATIONS AND EMPLOYERS ALL OF WHICH CAN WREST DEEP DISCOUNTS ON DRUG SALES IN EXCHANGE FOR AN ASSURED VOLUME OF BUSINESS ECKERD CONTENDS FOR THIS BUSINESS AGAINST A GROWING ARRAY OF COMPETITORS RANGING FROM SUPERMARKETS WITH PHARMACY COUNTERS TO THE PLANNED MERCKMEDCO JUGGERNAUT THESE LOWMARGIN SALES THE BULK OF ECKERD'S PRESCRIPTION DRUG SALES NOW ACCOUNT FOR ROUGHLY 12 BILLION OF ECKERD'S OVERALL REVENUE OF 39 BILLION UP FROM 450 MILLION OF ITS 29 BILLION SALES IN 1989 THE GROSS PROFITS IN THE PRESCRIPTION DEPARTMENT USED TO BE 40 RECALLS JACK ECKERD THE CHAIN'S 80YEAROLD FOUNDER WHO STILL KEEPS TABS ON THE COMPANY WITH FREQUENT VISITS TO ECKERD AND RIVAL STORES THOUGH HE SOLD HIS STAKE IN THE 1986 LBO NOW THEY HAVE TO BUILD THE BUSINESS IN THE FRONT OF THE STORE HE SAYS THAT INCLUDES PHOTO PROCESSING AND GREETING CARDS MR NATALE OF S&P ESTIMATES THAT ECKERD WILL EARN 185 A SHARE IN THE FISCAL YEAR ENDING IN JANUARY FULLY SHELTERED FROM TAXES BY AN AMPLE TAXLOSS CARRYFORWARD WITH PROJECTED COST SAVINGS AND GROWTH IN PRESCRIPTION VOLUME SAYS MR NATALE EVEN ON LOWER MARGIN BUSINESS WE EXPECT CASH FLOW TO GROW BETWEEN 7 AND 11 A YEAR THOUGH TOTAL DEBT IS RISING SLIGHTLY A REFINANCING IN JUNE LOWERED ECKERD'S INTEREST BILL TO 100 MILLION A YEAR WHICH WILL BOOST THIS YEAR'S PRETAX RESULTS EVEN MORE HE SAYS THAT'S ALL GOOD NEWS FOR MERRILL'S BUYOUT FUNDS AFTER THE OFFERING THEY WILL OWN SOME 147 MILLION SHARES VALUED AT ABOUT 205 MILLION THE SHARES WERE BOUGHT FOR 564 A SHARE IN THE LBO A DISCLOSURE ABSENT FROM THE CURRENT PROSPECTUS BUT DIVULGED IN THE DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AFTER THE DEAL AT THE CURRENT MARKET PRICE MERRILL'S EMPLOYEES AND THEIR COINVESTORS HAVE A PAPER PROFIT OF NEARLY 123 MILLION THAT SOUNDS TERRIFIC BUT MLCP'S ANNUAL RATE OF RETURN ON ECKERD WAS 135 PALTRY BY LBO STANDARDS MERRILL LYNCH'S BUYOUT FUNDS AREN'T SELLING ANY SHARES IN THE OFFERING A PLUS TO MANY ANALYSTS WHO LIKE TO SEE THE ORIGINAL HOLDER STAY IN EVEN IF THE SHARES WERE ACQUIRED AT A FAR LOWER PRICE BUT THE PARTNERSHIPS GET A LITTLE EXTRA OUT OF THE OFFERING MERRILL LYNCH CAPITAL PARTNERS THROUGH AN AFFILIATE ALSO STANDS TO PROFIT AS THE RESULT OF A COMPLEX TRANSACTION INVOLVING THE 1990 ACQUISITION OF 223 STORES FROM REVCO A RIVAL TO ECKERD MERRILL LYNCH CAPITAL PARTNERS'S NET COST AFTER SHUTTING DOWN MOST OF THE STORES AND SELLING THEIR INVENTORY AND OTHER ASSETS TO ECKERD WAS 418 MILLION JUST BEFORE THE STOCK OFFERING THE MERRILL LYNCH CAPITAL PARTNERS AFFILIATE SWAPPED ITS STOCK FOR ECKERD SHARES VALUED AT 52 MILLION GENERATING AN EXTRA PAPER PROFIT TO MERRILL LYNCH CAPITAL PARTNERS OF 10 MILLION ECKERD HAS BEEN MANAGING THE REMAINING 94 STORES UNDER A FEE ARRANGEMENT WITH MERRILL LYNCH CAPITAL PARTNERS THAT ALLOWED THE BUYOUT FUND TO DEFER PAYMENT NOW HALF THE PROCEEDS OF THE OFFERING WILL GO TO PAY 40 MILLION OF PAST DUE AND FUTURE MANAGEMENT FEES ON THOSE STORES NATURALLY AS THE UNDERWRITER MERRILL HAS BEEN ENTITLED TO FEES TOTALING 48 MILLION FOR FINANCINGS SINCE THE BUYOUT A MERRILL SPOKESWOMAN SAID THE COMPANY COULDN'T COMMENT ON THE OFFERING BECAUSE OF SEC REGULATIONS GOVERNING COMPANIES IN REGISTRATION BUSINESS 1692 DRUGSTORES IN 13 STATES MAKE ECKERD THE THIRDLARGEST CHAIN PRESCRIPTION DRUGS REPRESENT 56 OF SALES HALF THAT VOLUME IS WITH THIRDPARTY PAYERS SUCH AS INSURANCE COMPANIES AND HMOS SEE RELATED STORY OTC FOCUS BUT BE WARY IF CASINO' IS PART OF THE NAME WSJ AUGUST 9 1993 9308090073 930809 CLINTON'S ECONOMIC PACKAGE FINAL CAPITALIZATION RULES FOR BUSINESS ISSUED BY IRS WASHINGTON THE INTERNAL REVENUE SERVICE ISSUED FINAL REGULATIONS SPELLING OUT HOW BUSINESSES SHOULD CAPITALIZE COSTS WHEN CALCULATING TAXES THE CAPITALIZATION RULES WHICH STEMMED FROM THE TAX REFORM ACT OF 1986 ARE DESIGNED TO HELP COMPANIES PROPERLY MATCH EXPENSES WITH INCOME WHILE ELIMINATING CERTAIN DISPARITIES AMONG INDUSTRIES THAT WERE CONTAINED IN EARLIER RULES THE REGULATIONS ARE LARGELY IN LINE WITH TEMPORARY RULES THE IRS ISSUED IN 1987 THE EARLIER GUIDELINES HAVE BEEN SUPPLEMENTED IN THE MEANTIME WITH A SERIES OF IRS NOTICES THERE ARE SOME CHANGES HOWEVER FOR INSTANCE THE FINAL RULES ARE DESIGNED SO THAT MANY SMALL BUSINESSES WON'T FALL UNDER THEM THE IRS ALSO SOUGHT TO CLARIFY THE DEFINITION OF DISTRIBUTION COSTS AS GENERALLY THOSE COSTS INCURRED OUTSIDE A STORAGE FACILITY THOSE COSTS AREN'T SUBJECT TO THE CAPITALIZATION REQUIREMENTS BECAUSE OF THE MATTER'S SIGNIFICANCE THE IRS DECIDED TO REPROPOSE THIS SECTION OPENING IT TO FURTHER COMMENT BY TAXPAYERS BEFORE IT IS MADE FINAL 9308090072 930809 BUSINESS BRIEF COLUMBIA GAS SYSTEM INC SECONDQUARTER LOSS POSTED DESPITE AN OPERATING PROFIT COLUMBIA GAS SYSTEM INC REPORTED A SECONDQUARTER NET LOSS BUT SAID HIGHER NATURAL GAS PRICES HELPED PUSH OPERATING PROFIT SLIGHTLY HIGHER THE WILMINGTON DEL UTILITY REPORTED A NET LOSS OF 26 MILLION OR SIX CENTS A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 307 MILLION OR 61 CENTS A SHARE REVENUE ROSE 14 TO 5929 MILLION COLUMBIA GAS SAID THE QUARTER'S LOSS STEMMED PRIMARILY FROM A 379 MILLION AFTERTAX WRITEDOWN FOR DIMINISHED OPERATIONS AT ITS COVE POINT MD LIQUEFIED NATURAL GAS FACILITY THE COMPANY ALSO SAID THAT SINCE IT IS PROTECTED UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE IT DIDN'T PAY 36 MILLION IN AFTERTAX INTEREST EXPENSE IN THE LATEST QUARTER AND 34 MILLION IN THE YEAREARLIER PERIOD WITHOUT EXTRAORDINARY CHARGES COLUMBIA GAS REPORTED OPERATING PROFIT OF 64 MILLION UP FROM 700000 IN THE YEARAGO PERIOD THE COMPANY SAID A 46 INCREASE IN NATURAL GAS PRODUCTION PRICES HELPED PUSH OPERATING EARNINGS HIGHER 9308090071 930809 BUSINESS BRIEF NISSAN MOTOR CORP AUTO MAKER INCREASES PRICE OF '94 MODEL SENTRA BY 122 NISSAN MOTOR CORP SAID IT RAISED THE BASE PRICE OF THE 1994 MODEL SENTRA BY 122 TO 9780 THE MOST EXPENSIVE SENTRA THE GXE SEDAN NOW COSTS 15469 UP 4 FROM THE 1993 PRICE OF 14870 THE AUTO MAKER ALSO BOOSTED THE PRICE OF THE 1993 240SX MODEL THE SPORTY CAR NOW STARTS AT 15470 UP 48 FROM THE PREVIOUS PRICE OF 14755 NISSAN ATTRIBUTED THE HIGHER PRICES TO CURRENT BUSINESS AND ECONOMIC FACTORS 9308090070 930809 BUSINESS BRIEF FIRST INTERSTATE BANCORP TALKS ARE NOW UNDER WAY TO BUY SAN DIEGO FINANCIAL FIRST INTERSTATE BANCORP IS SEEKING TO PURCHASE SAN DIEGO FINANCIAL CORP A CLOSELY HELD BANK HOLDING COMPANY WITH ASSETS OF 21 BILLION ACCORDING TO PEOPLE IN SAN DIEGO FAMILIAR WITH THE TRANSACTION SAN DIEGO FINANCIAL IS A WELLCAPITALIZED 104YEAROLD INSTITUTION OWNED LARGELY BY MEMBERS OF THE FOUNDING SEFTON FAMILY WHICH IS SAID TO BE SELLING FOR TAX REASONS THE BANK OPERATES 53 BRANCHES IN THE SAN DIEGO AREA WHERE FIRST INTERSTATE WHICH IS BASED IN LOS ANGELES HAS A RELATIVELY MINOR PRESENCE SPOKESMEN FOR BOTH BANKS DECLINED TO COMMENT ON THE CONTEMPLATED DEAL WHICH WAS REPORTED FRIDAY IN THE SAN DIEGO DAILY TRANSCRIPT PROPOSED TERMS WEREN'T AVAILABLE FIRST INTERSTATE IS IN AN EXPANSION MODE NOW THAT IT IS SOLIDLY PROFITABLE AFTER SEVERAL YEARS OF POOR PERFORMANCE IN RECENT WEEKS IT BOUGHT TWO SMALL SOUTHERN CALIFORNIA BANKS FIRST STATE BANK OF THE OAKS IN THOUSAND OAKS AND CAL REP BANCORP IN BAKERSFIELD 9308090069 930809 BUSINESS BRIEF CONSOLTEX GROUP INC MONTREAL COMPANY AGREES TO ACQUISITION OF US FIRM CONSOLTEX GROUP INC SAID IT AGREED TO ACQUIRE LINQ INDUSTRIAL FABRICS INC FOR 775 MILLION CONSOLTEX A MONTREAL SYNTHETICFABRIC MAKER SAID THE ACQUISITION IS SUBJECT TO THE RAISING OF 100 MILLION FROM A DEBT ISSUE SCHEDULED TO CLOSE NEXT MONTH PROCEEDS WILL BE USED TO FINANCE THE ACQUISITION AND REFINANCE OTHER DEBT LINQ A FABRIC MAKER BASED IN SUMMERVILLE SC IS MAJORITY OWNED BY A US INVESTMENT BANK AND PARTLY OWNED BY LINQ'S MANAGEMENT CONSOLTEX DECLINED TO IDENTIFY THE BANK LINQ HAD SALES OF 53 MILLION IN THE YEAR ENDED JUNE 30 CONSOLTEX SAID THAT IF THE ACQUISITION CLOSES LINQ IS EXPECTED TO CONTRIBUTE IMMEDIATELY TO CONSOLTEX'S EARNINGS 9308090068 930809 CLINTON'S ECONOMIC PACKAGE THE BATTLES AHEAD WITH BUDGET PASSED CLINTON NOW IS FACING A NEW SET OF STRUGGLES TRADE PACT HEALTH REFORM LOOM AS TOUGH FIGHTS AS DEMOCRATS SPLINTER BUT ECONOMIC WIN MAY HELP BY JACKIE CALMES AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON REP TIMOTHY PENNY WHO IS QUITTING TO GO HOME TO MINNESOTA AFTER THIS CONGRESS HAS SOME ADVICE FOR WASHINGTON NEWCOMER BILL CLINTON WHEN YOU HAVE A NEARDEATH EXPERIENCE AND THEN TWICE SAID THE YOUNG DEMOCRAT AFTER LAST WEEK'S BUDGET SQUEAKERS IT MIGHT CAUSE YOU TO RETHINK YOUR GAME PLAN FACED WITH UNITED REPUBLICAN OPPOSITION TO MAJOR TAX INCREASES THE NEW PRESIDENT GAMBLED LAST WINTER THAT HE COULD PASS HIS DEFICITREDUCTION PLAN WITH DEMOCRATIC VOTES ALONE NOW HE HAS DONE IT YET THE VICTORY CAME AT GREAT COST TO MR CLINTON AND THERE IS NOW A GROWING SENSE THAT HE MUST ALTER HIS COURSE OR RISK FAILURE FOR THE REST OF HIS AMBITIOUS AGENDA COMING UP SOON ARE THE NORTH AMERICAN FREE TRADE AGREEMENT WITH MEXICO AND CANADA AND HEALTHCARE OVERHAUL FOLLOWED BY WELFARE REFORM AND THE PRESIDENT'S DOMESTICINVESTMENT PROMISES THOUGH REPUBLICANS REFUSED TO PARTICIPATE IN THE BUDGET DEBATE THEIR SUPPORT IS CRUCIAL FOR EACH OF THOSE BY THE ADMINISTRATION'S OWN COUNT AS MANY AS 120 REPUBLICAN VOTES MAY BE NEEDED TO GET THE TRADE AGREEMENT THROUGH THE HOUSE WE HAVE TO WIN THIS WITH PEOPLE WHO BITTERLY OPPOSED US ON THE BUDGET SAYS BOWMAN CUTTER DEPUTY CHIEF OF THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL NONE OF THIS DIMINISHES THE SIGNIFICANCE OF THE VICTORY ITSELF TAKEN TOGETHER WITH MR CLINTON'S BUDGET THE PACKAGE REPRESENTS A MAJOR SHIFT FROM THE PRIORITIES SET UNDER 12 YEARS OF REPUBLICAN PRESIDENTS AND WHILE THE WHITE HOUSE WAS FORCED TO PARE BACK SUBSTANTIALLY ON ITS INVESTMENT AGENDA THE EXPANSION OF THE EARNEDINCOME TAX CREDIT FOR THE WORKING POOR IS A MAJOR STEP TOWARD THE GOAL OF WELFARE REFORM BY WINNING WITHOUT GOP SUPPORT SOME DEMOCRATS HOPE THEY HAVE MADE REPUBLICANS FEEL A GREATER NEED TO COOPERATE BUT THE SIXMONTH BUDGET PUSH HAS EXHAUSTED MUCH OF MR CLINTON'S POLITICAL CAPITAL IN HIS OWN PARTY LIBERALS AND CONSERVATIVES ARE LEFT SUSPICIOUS OF ONE ANOTHER AND OF HIM WHILE VYING TO BE THE FACTION THAT FILLS IN THE DETAILS OF THE LATER INITIATIVES WORSE HAVING BACKED THE PRESIDENT ON THE ECONOMIC PLAN SOME DEMOCRATS ARE ITCHING TO BREAK WITH HIM DOWN THE ROAD ON THE REPUBLICAN SIDE MODERATES STILL COMPLAIN THAT MR CLINTON SNUBBED THEM HAVING SAT OUT THE BUDGET FIGHT REPUBLICANS WILL BE LOOKING FOR SOME OPPORTUNITIES PARTICULARLY DURING CONSIDERATION OF NAFTA TO DEMONSTRATE THAT THEY AREN'T PURELY OBSTRUCTIONIST BUT BY THEIR STANCE IN THE BUDGET FIGHT THEY ALSO HAVE TELEGRAPHED THAT THEY WILL HAVE NO PART OF TAX OR SPENDING INCREASES AND THE HEALTH AND WELFARE INITIATIVES THE TWO MOST PROMINENT EXAMPLES ARE LIKELY TO CALL FOR SOME OF BOTH IN SHORT MR CLINTON IS BACK WHERE HE BEGAN A PRESIDENT WHO MUST FIGURE OUT A WAY TO MOVE TO AN ILLDEFINED POLITICAL CENTER TO SUCCEED IN DOING THIS HE MUST COMPETE WITH THE LIKES OF ROSS PEROT AND SENATE MINORITY LEADER ROBERT DOLE WHO ARE TRYING TO ATTRACT THOSE OCCUPYING THIS SAME POLITICAL MIDDLE GROUND NOR IS MOVING TO THE CENTER PAINFREE IN GIVING THE PRESIDENT THE FINAL VOTE HE NEEDED TO WIN FRIDAY NIGHT DEMOCRATIC SEN ROBERT KERREY OF NEBRASKA GOADED MR CLINTON TO RETURN TO HIS CALL FOR SHARED SACRIFICE BUT HE ALSO ADMITTED THAT CONGRESS HAS SHIRKED FROM THE CENTRAL CHALLENGE OF SUCH SACRIFICE NAMELY TELLING THE MIDDLE CLASS IT CAN'T BE SPARED SOME PAIN FROM TAXES AND SPENDING CUTS IF ANYTHING THE BUDGET EXERCISE DEMONSTRATED HOW SKITTISH WASHINGTON REMAINS OVER CHANGE AND HOW THIN MR CLINTON'S MANDATE TO PUSH CHANGE ACTUALLY IS THE HAGGLING OVER FRACTIONS OF A CENT ON THE GASOLINE TAX BECAME AN EMBARRASSMENT TO DEMOCRATS AND SOUTHERNERS WERE SURPRISINGLY FEARFUL OF EMBRACING ANY TAX CHANGES EVEN WHEN THE NET EFFECT HELPED MORE OF THEIR CONSTITUENTS TEXAS REP JAMES CHAPMAN FOR INSTANCE VOTED AGAINST THE BILL EVEN AS ADMINISTRATION NUMBERS SHOWED THAT FEWER THAN 1400 WEALTHY TAXPAYERS IN HIS DISTRICT WOULD BE HURT BY THE INCOMETAX CHANGES AND MORE THAN 57000 FAMILIES WOULD BENEFIT FROM THE EXPANDED EARNEDINCOME TAX CREDIT FOR THE POOR ALL THE BUDGET WRANGLING SEEMS TO HAVE LEFT THE PUBLIC MORE DISILLUSIONED AND THE TAXHEAVY IMAGE OF THE NEW ECONOMIC PLAN MAY LEAVE VOTERS TEMPTED TO BLAME IT FOR THEIR TROUBLES IF THE ECONOMY TURNS SOUR AS A RESULT THE MOST IMPORTANT THING FOR MR CLINTON IS THAT THE ECONOMY PERFORM WELL NOW THAT HIS IMPRINT IS ON IT A RECENT WALL STREET JOURNAL/NBC NEWS POLL INDICATED THAT FOR ALL THEIR PROFESSED DESIRE TO SEE THE BUDGET DEFICIT CUT AMERICANS BY A 2TO1 MARGIN CONSIDER JOBS AND THE ECONOMY MORE IMPORTANT THAN THE DEFICIT THE ECONOMY IS WHAT ELECTED BILL CLINTON AND THE ECONOMY REMAINS THE YARDSTICK BY WHICH HE WILL BE JUDGED ACCORDING TO DEMOCRATIC POLLSTER PETER HART AND REPUBLICAN POLLSTER ROBERT TEETER WHO CONDUCTED THE JOURNAL POLL THE SILVER LINING FOR MR CLINTON IS THAT THE DEMOCRATS MOST NOTABLY THE NEW CLASS OF DEMOCRATIC WOMEN SHOWED UNUSUAL DISCIPLINE IN APPROVING THE MAJOR LEGISLATIVE INITIATIVE OF HIS YOUNG ADMINISTRATION BUT HE CAN'T RELY ON THEIR VOTES ALONE TO PASS ANOTHER PIECE OF MAJOR LEGISLATION EVEN WITH THE PARTY'S 40VOTE MAJORITY IN THE HOUSE AND SIXVOTE CONTROL OF THE SENATE THE NEW PACKAGE AIMED AT SHRINKING DEFICITS BY 496 BILLION OVER THE NEXT FIVE YEARS WAS PASSED UNDER UNIQUE PROCEDURES THAT EXPEDITED ACTION STEPS THAT WON'T BE IN EFFECT ON OTHER BILLS MOREOVER MANY OF THE PRESIDENT'S FELLOW DEMOCRATS BACKED HIS ECONOMIC PROGRAM ONLY BECAUSE HIS NASCENT PRESIDENCY WAS IN THE BALANCE MEMBERS WERE IF BEGRUDGINGLY WILLING TO DEFER TO THE PRESIDENT ON THIS ONE SAYS OREGON REP MICHAEL KOPETSKI NOW THOSE SAME DEMOCRATS BELIEVE THAT THEY HAVE PURCHASED A TICKET TO GO THEIR OWN WAY WHEN THEY CHOOSE ON THE OVERHAUL OF THE NATION'S HEALTHCARE SYSTEM WHICH IS EXPECTED TO SPARK AN EVEN LARGER BATTLE THAN THE BUDGET THERE IS THE RISK THEY WILL DEFER INSTEAD TO THE MEDICAL INTERESTS INSURANCE FIRMS OR OTHER CONSTITUENT GROUPS BACK HOME ON NAFTA THEY MAY DEFER TO THEIR LOCAL UNION HALLS AUTO MAKERS AND FARM AND TEXTILE INTERESTS WE'VE BECOME FREER AGENTS SAYS REP KOPETSKI PARADOXICALLY THE DEMOCRATS' UNITY ON THE BUDGET VOTE WILL MAKE SUCH HARMONY THAT MUCH HARDER TO ATTAIN IN THE FUTURE THE INTRAPARTY HAGGLING HAS FANNED THE HISTORIC TENSION BETWEEN THE HOUSE AND SENATE LIBERAL AND CONSERVATIVE DEMOCRATS AT SOME POINT EACH WING OF THE PARTY GROUSED THAT THE OTHER HAD PREVAILED IN THE BILL'S WRITING AND IN THE JOCKEYING FOR MR CLINTON'S EAR IN THE END THE MORE NUMEROUS LIBERALS WERE THE MORE SATISFIED GIVEN THE PACKAGE'S EMPHASIS ON TAXING THE RICH CUTTING DEFENSE SPARING MIDDLECLASS ENTITLEMENT PROGRAMS AND EXPANDING PROGRAMS FOR POOR WORKERS AND CHILDREN WHAT IS MORE THE LARGE FRESHMAN CLASS IN THE HOUSE IS SKITTISH AT ONE POINT AFTER TRYING UNSUCCESSFULLY TO CONVINCE A YOUNG DEMOCRAT OF THE MERITS OF THE BILL A FRUSTRATED REP DAN ROSTENKOWSKI CHAIRMAN OF THE TAXWRITING WAYS AND MEANS COMMITTEE LEFT HIS OWN OFFICE WITH THE REJOINDER KID VOTE ANY WAY YOU WANT CONSERVATIVES DID EXTRACT VAGUE PROMISES FOR FURTHER ACTION TO CUT DOMESTIC SPENDING AND FOR A SET OF APPROPRIATIONS CAPS THAT WILL SEVERELY LIMIT THE PRESIDENT'S OWN INITIATIVES THE ISSUES COULD BE JOINED THIS FALL WHEN THE ADMINISTRATION WILL BE UNDER PRESSURE TO OFFER WHAT AMOUNTS TO A YEAREND LINEITEM VETO PACKAGE RESCINDING BILLIONS IN ITEMS FROM THE FISCAL 1994 APPROPRIATIONS BILLS STILL BEFORE CONGRESS BUT EVEN THAT EFFORT IS LIABLE TO BE COMPLICATED BY THE WOUNDS LEFT BY THIS SUMMER'S BUDGET DEBATE YESTERDAY SEN DOLE WARNED THAT THE GOP MAY NOT COOPERATE DEMOCRATS WANT TO RAISE EVERYBODY'S TAXES AND THEN COME BACK IN OCTOBER AND SAY NOW WE'VE RAISED YOUR TAXES LET THE REPUBLICANS CUT SPENDING' THAT'S NOT GOING TO HAPPEN SEN DOLE SAID ON NBCTV'S MEET THE PRESS AT THE OTHER EXTREME DEMOCRATIC REP BARNEY FRANK OF MASSACHUSETTS WARNS PEOPLE WHO ARE TO THE LEFT OF THE PRESIDENT WILL PUSH HIM MORE THERE ARE SOME LIBERAL GOALS THAT HAVE TO BE ADDRESSED SUCH TALK IS DISMAYING TO THE MODERATES AND CONSERVATIVES WHO TRY TO KEEP MR CLINTON TRUE TO HIS CENTRIST BASE THEIR FRUSTRATION IS PERSONIFIED BY REP PENNY A LEADER AMONG THE BUDGETCONSCIOUS HOUSE DEMOCRATS THE MORNING AFTER THE HOUSE VOTE AN EMOTIONAL MR PENNY RETURNED TO THE CHAMBER TO ANNOUNCE THAT HE WOULD RETIRE AFTER THIS CONGRESS THE 41YEAROLD FATHER OF FOUR CITED FAMILY CONSIDERATIONS BUT FRUSTRATION WITH CONGRESS APPEARED TO BE A FACTOR NOW THAT A DEMOCRAT HOLDS THE WHITE HOUSE THE FIVETERM LAWMAKER SAID I THINK THE TEMPTATION AFTER 12 YEARS IN THE WILDERNESS IS FOR THE DOMINANT FORCES IN OUR PARTY THE LIBERALS TO WANT IT ALL AMONG REPUBLICANS MEANWHILE RIGIDLY ANTITAX LAWMAKERS NOW SET THE PARTY'S TONE EVEN AS TOP LEADERSHIP SPOTS REMAIN IN THE HANDS OF TRADITIONAL REPUBLICANS WHO HATE DEFICITS MORE THAN TAXES WYOMING SEN MALCOLM WALLOP LEADER OF A HARDRIGHT SPLINTER GROUP SAYS HE WILL OPPOSE ANY HEALTH PLAN THAT INCLUDES ANYTHING SMACKING OF TAX INCREASES THERE ARE SOME THINGS THAT LIBERAL DEMOCRATS DON'T UNDERSTAND HE SAYS WE BELIEVE THAT REVENUE COMES FROM GROWTH AND THEY BELIEVE IT COMES FROM HIGHER RATES OFFSETTING SUCH ATTITUDES HOWEVER IS THE INCLINATION OF OTHER REPUBLICANS TO BE CONSTRUCTIVE PLAYERS ESPECIALLY IN VIEW OF RECENT POLLS SHOWING THAT THE PUBLIC VIEWS THE GOP AS A PACK OF POLITICALLY MOTIVATED NAYSAYERS CONSEQUENTLY JUST AS DEMOCRATS WON'T MAINTAIN THE SORT OF UNITY THAT MARKED THE BUDGET VOTE NEITHER WILL REPUBLICANS STAY UNITED IN OPPOSITION AND THAT CREATES OPPORTUNITIES FOR MR CLINTON WE APPEAR MEANSPIRITED FEISTY AND OBSTRUCTIONIST FRETS IOWA REP FRED GRANDY A MODERATE REPUBLICAN ON THE WAYS AND MEANS PANEL HE LAMENTS THE INFLUENCE OF HIS PARTY'S ANTITAX EXTREMISTS AND SAYS WE'VE GOT GUYS WHO EVEN ALIENATE THEIR FRIENDS BY THEIR BEHAVIOR BECAUSE NOTHING SO DEFINES A PARTY'S VIEW OF GOVERNMENT AS A BUDGET MEASURE NOTHING IS SO PRONE TO BE PARTISAN COMING RIGHT AFTER LAST FALL'S DIVISIVE ELECTION MANY PEOPLE IN BOTH PARTIES SAY THE PARTISAN FIGHT THAT JUST CONCLUDED WAS INEVITABLE IT'S SUCH A HIGHPROFILE PROCESS US AGAINST THEM WE CAN GOVERN NO YOU CAN'T' THAT THERE'S NO PLACE TO MEET SAYS HOUSE MAJORITY LEADER RICHARD GEPHARDT A MISSOURI DEMOCRAT THE ADMINISTRATION CONTENDS IT COURTED REPUBLICANS TO NO AVAIL BEFORE THE FEB 17 ADDRESS IN WHICH MR CLINTON LAID OUT HIS FISCAL PROGRAM BEFORE A JOINT SESSION OF CONGRESS IN FACT THE GOP OPPOSITION CONTRIBUTED TO DECISIONS BY THE TREASURY DEPARTMENT TO GO AROUND THE REPUBLICANS AND COURT THEIR OWN BUSINESS CONSTITUENCY WITH TAX BREAKS AIMED AT SPECIFIC INDUSTRIES THE SAME THINKING LED TO REP ROSTENKOWSKI'S INSISTENCE ON HOLDING THE CORPORATE TAX RATE TO 35 AS A WAY OF BUYING SOME BUSINESS CHEERLEADERS FOR THE PACKAGE FOR WHATEVER REASON EARLY EFFORTS IN BOTH THE HOUSE AND SENATE TO FIND BIPARTISAN GROUND QUICKLY FIZZLED AS WAYS AND MEANS BEGAN WORK ON THE PACKAGE IN APRIL MR ROSTENKOWSKI PRIVATELY MET WITH COMMITTEE REPUBLICANS TO SOLICIT SUPPORT HE DIDN'T SUCCEED AND WHEN THE SENATE FINANCE COMMITTEE TOOK UP THE BILL IN JUNE MISSOURI REPUBLICAN JOHN DANFORTH AND DEMOCRATIC SEN DAVID BOREN OF OKLAHOMA CONVENED A SMALL GROUP TO SEEK BIPARTISAN COMPROMISE BOTH SIDES WERE PRESSURED TO STOP BY THEIR RESPECTIVE PARTY COLLEAGUES WHEN YOU GET A DEMOCRATIC ADMINISTRATION IT'S LOCKSTEP REPUBLICAN NEGATIVISM REP ROSTENKOWSKI SAYS BUT ONE OF THE REPUBLICANS REP GRANDY SAYS THE DEAL HE OFFERED US WE COULDN'T ACCEPT BECAUSE THERE WERE TOO MANY TAXES GOING IN FORMER DEMOCRATIC SEN RUSSELL LONG OF LOUISIANA A FORMER CHAIRMAN OF THE FINANCE COMMITTEE WHO CAME TO THE SENATE LAST FRIDAY NIGHT TO WATCH THE FINAL SENATE VOTE CONCLUDES TO ME IT'S CLEAR THE PRESIDENT DIDN'T MOVE TO GAIN SOME REPUBLICAN SUPPORT SOON ENOUGH IRONICALLY THE SEARCH FOR SOME MIDDLE GROUND MAY BE BEST SYMBOLIZED BY SEN KERREY THE MAN WHO VACILLATED BUT FINALLY GAVE MR CLINTON HIS MARGIN OF VICTORY A MEDAL OF HONOR VETERAN OF VIETNAM THE SENATOR HAS A DEEPLY FELT NOTION OF SACRIFICE WHICH DOVETAILS WITH HIS FEAR OF THE DEFICIT WHEN THE NEBRASKAN FINALLY WENT TO THE SENATE FLOOR TO ANNOUNCE HIS RELUCTANT SUPPORT LAST FRIDAY NIGHT HE BEGAN BY CHASTISING REPUBLICANS FOR UNITING IN OPPOSITION NOT TO AN IDEA BUT TO A MAN BUT HE ALSO WAS CRITICAL OF HIMSELF AND OTHER DEMOCRATS IN CONGRESS FOR BENDING TOO EASILY TO CONSTITUENT PRESSURES GET BACK ON THE HIGH ROAD MR PRESIDENT WHERE YOU ARE YOUR BEST HE IMPLORED IN THE END AFTER ALL THE WRANGLING IT MAY TAKE ANOTHER FLOOD TO BRING PEACE TO THE ARK OF GOVERNMENT IN ITS NEW SEARCH FOR REPUBLICAN HELP THE WHITE HOUSE IS ANXIOUS TO GIVE BIPARTISAN CREDIT TO THOSE INCLUDING SEN DOLE WHO HELPED EXPEDITE ACTION ON EMERGENCY AID FOR THE FLOODRAVAGED MIDWEST SO UNDER ONE OPTION BEING EXPLORED MR CLINTON WOULD STOP ON HIS WAY TO A SCHEDULED APPEARANCE IN DENVER THIS WEEK TO HAVE A BILL SIGNING CEREMONY REPUBLICANS AND DEMOCRATS WOULD BE INVITED A SYMBOL OF MR CLINTON'S RENEWED DETERMINATION TO GET BACK ON HIGHER BIPARTISAN GROUND JOHN HARWOOD CONTRIBUTED TO THIS ARTICLE 9308090067 930809 BUSINESS BRIEF GEICO CORP INSURANCE COMPANY REPORTS RISE IN PROFIT FOR 2ND QUARTER GEICO CORP AN INSURANCE CONCERN SAID HIGHER PREMIUMS HELPED PUSH SECONDQUARTER NET INCOME UP 27 DESPITE CONTINUED WEATHERRELATED LOSSES FOR THE QUARTER WASHINGTONBASED GEICO REPORTED NET INCOME OF 845 MILLION OR 118 A SHARE COMPARED WITH NET INCOME OF 667 MILLION OR 92 CENTS A SHARE A YEAR EARLIER REVENUE INCREASED 69 TO 6597 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY GEICO SHARES GAINED 2625 OR 53 TO FINISH AT 52625 THE COMPANY SAID PROPERTY AND CASUALTY EARNED PREMIUMS INCREASED 10 IN THE SECOND QUARTER WEATHERRELATED CATASTROPHE LOSSES IN THE QUARTER WHILE STILL SIGNIFICANT AT ABOUT 9 MILLION DECLINED FROM LAST YEAR'S 135 MILLION 9308090066 930809 BUSINESS BRIEF RALSTON PURINA CO CONTINENTAL BAKING DIVISION SETTLES DISPUTE WITH STRIKERS RALSTON PURINA CO ST LOUIS SAID ITS CONTINENTAL BAKING CO UNIT RESOLVED A DISPUTE WITH ABOUT 750 STRIKING WORKERS AT ITS PHILADELPHIA AND NATICK MASS BAKERIES THE DISPUTE BETWEEN CONTINENTAL AND THE BAKERY CONFECTIONERY AND TOBACCO WORKERS UNION CENTERED ON HEALTHCARE ISSUES COMPANY SPOKESMAN TOM ROLFS SAID WE WERE ABLE TO OBTAIN THE HEALTHCARE COST CONTROLS WE WERE SEEKING THE WORK STOPPAGE BEGAN LAST MONTH AT A CONTINENTAL PLANT IN PHILADELPHIA TEAMSTER UNION DRIVERS HAD BEEN HONORING THE PICKET LINES WHICH DISRUPTED DELIVERIES OF WONDER BREAD TWINKIES AND OTHER CONTINENTAL BAKED GOODS TO CUSTOMERS 9308090065 930809 THE OUTLOOK US ECONOMIC GROWTH IS RISING IN QUALITY BY HENRY F MYERS NEW YORK THE US ECONOMY FOR ALL ITS AILMENTS MAY BE SURPRISINGLY HEALTHY THAT IS NOT TO DENY ITS FORMIDABLE PROBLEMS DESPITE THE PASSAGE OF PRESIDENT CLINTON'S BUDGET PLAN THE ENORMOUS FEDERAL DEFICITS WILL LINGER ON LIKE A NAGGING BACKACHE PRIVATESECTOR DEBT AND A DISMAL SAVINGS RATE WILL KEEP HAMPERING PRODUCTIVE INVESTMENT THE JOB MARKET SEEMS LIKELY TO REMAIN DISTURBINGLY WEAK FOR YEARS US TRADE DEFICITS WILL CONTINUE TO BE HUGE AT THE SAME TIME SOME SIGNS OF HEALTH HAVE BEEN WIDELY HAILED INFLATION HAS BEEN GRADUALLY COOLING FOR YEARS AND IN VIEW OF THE GLOBAL DEFLATIONARY PRESSURES PROBABLY WON'T HEAT UP ANYTIME SOON THE SLOW PACE OF ECONOMIC GROWTH SHOULD DELAY THE ONSET OF THE CAPACITY CONSTRAINTS THAT TYPICALLY PRECEDE RECESSIONS THE UNEMPLOYMENT RATE HAS BEEN GRADUALLY SLIDING DESPITE THE IMPENDING TAX INCREASES INDUSTRIAL RESTRUCTURING HAS FINALLY STEPPED UP THE FRUSTRATINGLY SLOW INCREASES IN PRODUCTIVITY AND SHOULD CONTINUE TO SHARPEN AMERICAN COMPANIES' ABILITY TO TAKE ON FOREIGN COMPETITORS BUT GENERALLY GOING UNAPPRECIATED IS THE HIGHER QUALITY OF US ECONOMIC GROWTH ALEXANDER PARIS OF BARRINGTON RESEARCH ASSOCIATES COMMENTS FOR STARTERS HE NOTES THAT ARTIFICIAL GOVERNMENT FISCAL STIMULUS HAS PLAYED A MUCH SMALLER ROLE IN THIS RECOVERY THAN IN PAST ONES AND THAT THIS CHANGE REDUCES THE ECONOMIC DISTORTIONS FEDERAL SPENDING USUALLY CAUSES NOT THAT THE GOVERNMENT ISN'T SPENDING AND WASTING PRODIGIOUS AMOUNTS OF MONEY BUT THE GROWTH IN ITS SPENDING HAS SLOWED AND WHILE FEDERAL TRANSFER PAYMENTS PROGRAMS SUCH AS SOCIAL SECURITY THAT MERELY REDISTRIBUTE MONEY FROM SOME AMERICANS TO OTHERS ARE SOARING GOVERNMENT PURCHASES OF GOODS AND SERVICES HAVE DROPPED 94 SINCE THE 1991 FIRST QUARTER SUCH PURCHASES ARE ECONOMICALLY MORE SIGNIFICANT AND THEY ARE SOAKING UP LESS REAL WEALTH THIS CHANGE IN FEDERAL SPENDING IS MOST OBVIOUS OF COURSE IN THE DROP IN DEFENSE EXPENDITURES IT ALSO IS EVIDENCED IN THE FISCALLY STRAPPED GOVERNMENT'S INABILITY TO SPEED THE ECONOMIC RECOVERY THROUGH PUMPPRIMING PROGRAMS PRESIDENT CLINTON COULDN'T PUSH A RELATIVELY MODEST 16 BILLION PLAN THROUGH CONGRESS AND TALK OF VAST OUTLAYS ON ROADS AND OTHER INFRASTRUCTURE PROJECTS HAS TAILED OFF INTO OBLIVION THE UPSHOT RECENT ECONOMIC GROWTH HAS COME IN LARGE MEASURE FROM THE PRIVATE SECTOR RATHER THAN FROM GOVERNMENT IT IS AS BUSINESSPEOPLE USED TO SAY SOUND THAT PERCEPTION IS STRENGTHENED BY THE FEDERAL RESERVE'S TIGHT CONTROL OVER THE MONEY SUPPLY THOUGH MODESTLY EXPANSIONARY EVER SINCE THE LATE 1980S MONETARY GROWTH HASN'T BEEN WILDLY STIMULATIVE AND ISN'T LIKELY TO REKINDLE INFLATION VERY QUICKLY THE RELATIVELY SOUND FISCAL AND MONETARY POLICIES ARE BEING MATCHED BY NEWFOUND SOBRIETY IN THE PRIVATE SECTOR JOHN E SILVIA THE CHIEF ECONOMIST OF KEMPER FINANCIAL SERVICES INC NOTES THAT BUSINESSES REMAIN CAUTIOUS ABOUT THE AMOUNT OF DEBT ON THEIR BALANCE SHEETS ESPECIALLY GIVEN THE STAGE OF THE BUSINESS CYCLE THEY NOW MIGHT BE EXPECTED TO BE BORROWING HEAVILY AND MR PARIS OBSERVES THAT INVENTORIES RELATIVE TO SALES ARE AT RECORD LOW LEVELS FOR SUCH A PERIOD THIS MODERATION WHICH PROBABLY OWES AS MUCH TO NEW INVENTORYCONTROL TECHNIQUES AS IT DOES TO CAUTION MAY HELP AVOID THE EXCESSIVE STOCK BUILDUPS THAT HAVE EVENTUALLY CRIMPED PAST RECOVERIES IN ANY EVENT THE WILDEST EXCESSES OF THE 1980S THE CRAZY OVERBUILDING OF OFFICES STORES BANKS HOTELS AND APARTMENT HOUSES HAVE FADED AWAY LIKE A BAD DREAM LEAVING BEHIND ONLY THE DEBRIS IN MOST CITIES OFFICE VACANCY RATES ARE SLOWLY FALLING AND EVEN THOUGH HOMEMORTGAGE RATES HAVE DROPPED TO 20YEAR LOWS FEW PEOPLE ARE NOW BUYING FAR BIGGER HOUSES THAN THEY REALLY NEED THEY HAVE LOST THEIR MISPLACED CONFIDENCE THAT PRICES CAN ONLY GO UP IN ADDITION THE 1980S MANIA FOR FUNNYMONEY ACQUISITIONS AND WILDLY LEVERAGED BUYOUTS HAS BLOWN OVER EVEN WALL STREET HAS NEARLY COME TO ITS SENSES THE FADING OF SPECULATION WHETHER ON BUILDINGS OR ON CORPORATE ACQUISITIONS CAN FREE FUNDS FOR PRODUCTIVE INVESTMENT MEANWHILE CAPITAL SPENDING IS MAINTAINING A DECENT PACE EVEN THOUGH THE INVESTMENT TAX CREDIT PROPOSED BY MR CLINTON HAS BEEN REJECTED THE SPENDING IS HEAVILY WEIGHTED TOWARD INVESTMENT IN PRODUCTIVE EQUIPMENT ESPECIALLY COMPUTERIZATION RATHER THAN TOWARD RECKLESS EXPANSION OF CAPACITY THAT MAY OR MAY NOT BE NEEDED THOUGH ADMITTEDLY SOME MANUFACTURERS ARE RUNNING THE RISK OF BEING UNABLE TO MEET DEMAND IF IT DOES SUDDENLY SURGE GETTING THE INDUSTRIAL DINOSAURS BACK INTO SHAPE HAS CAUSED A LOT OF PAIN BUT IT ALSO HAS ELIMINATED MANY NOLONGERNEEDED JOBS AND THUS HAS IMPROVED THE CHANCES FOR MAJOR GAINS IN PRODUCTIVITY AND THUS LIVING STANDARDS IN THE FUTURE IN ADDITION THE INCREASING USE OF TEMPORARY WORKERS AND OUTSIDE BUSINESS SERVICES WHICH ACCOUNTS FOR MUCH OF THE DROP IN MANUFACTURING PAYROLLS PRODUCES MORE THAN JUST FLEETING BENEFITS FLEXIBLE HIRING PATTERNS FORCE DIFFICULT ADJUSTMENTS ON MANY WORKERS BUT THEY ALSO BOLSTER AMERICAN COMPANIES' ALREADYHUGE ADVANTAGE OVER FOREIGN COMPETITORS CONSTRAINED BY RIGID JOBPROTECTION LAWS MEANWHILE A SURGE IN US EXPORTS TO LATIN AMERICA AND ASIA IS REDUCING US EXPORTERS' TRADITIONAL RELIANCE ON SALES TO EUROPE SUCH DIVERSIFICATION SHOULD PROVE BENEFICIAL AND US COMPANIES' STRENGTH IN BUSINESS SERVICES A RAPIDLY GROWING FIELD WORLDWIDE AUGURS WELL FOR EXPORTS SO THE AMERICAN ECONOMY CLEARLY ENJOYS BETTER HEALTH THAN ITS MANY PROBLEMS WOULD SEEM TO INDICATE GROWTH MAY BE SLOW BUT ITS QUALITY IS HIGH 9308090064 930809 BUSINESS BRIEF PHOENIX RE CORP SECONDQUARTER PROFIT SOARS ON CATASTROPHE INSURANCE PHOENIX RE CORP A NEW YORK REINSURANCE COMPANY SAID HIGH WORLDWIDE CATASTROPHE INSURANCE RATES HELPED SECONDQUARTER PROFIT MORE THAN DOUBLE THE COMPANY REPORTED NET INCOME OF 45 MILLION OR 60 CENTS A SHARE COMPARED WITH 16 MILLION OR 32 CENTS A SHARE A YEAR EARLIER ON THE NEWS PHOENIX SHARES ROSE 875 CENTS TO CLOSE AT 32875 IN OVERTHECOUNTER TRADING FRIDAY PHOENIX SAID THE HIGHER RATES WERE DUE TO THE EXTRAORDINARY NUMBER OF SIGNIFICANT CATASTROPHES THAT HAVE OCCURRED OVER THE PRIOR THREE YEARS REVENUE ROSE 20 TO 193 MILLION FROM 161 MILLION THE COMPANY'S CHANGING MIX OF BUSINESS ALSO CONTRIBUTED TO HIGHER EARNINGS PHOENIX SAID 9308090063 930809 BUSINESS BRIEF CRAIG CORP FIRM HAS PACT WITH STATER TO SELL BACK ITS 50 STAKE CRAIG CORP SAID IT REACHED AN AGREEMENT WITH STATER BROS HOLDINGS INC'S MANAGEMENT TO SELL IT CRAIG'S 50 STAKE IN STATER FOR 104 MILLION CRAIG IS A LOS ANGELES HOLDING COMPANY STATER IS A CLOSELY HELD COLTON CALIF SUPERMARKET CHAIN UNDER THE AGREEMENT STATER MANAGEMENT WOULD PAY CRAIG 42 MILLION IN CASH AND RETURN TO THE COMPANY 311404 CRAIG COMMON SHARES CURRENTLY VALUED AT ABOUT 34 MILLION BY YEAR'S END STATER HAS THE OPTION TO COMPLETE THE BUYBACK FOR AN ADDITIONAL 60 MILLION PLUS INTEREST WITHIN 12 YEARS THE DEAL IS SUBJECT TO APPROVAL BY THE BOTH BOARDS AND TO STATER'S ISSUANCE OF 140 MILLION IN NEW DEBT THE AGREEMENT WOULD SEVER A RELATIONSHIP FORGED IN 1986 WHEN CRAIG HELPED STATER'S MANAGEMENT WIN A PROXY FIGHT OVER CONTROL OF THE CHAIN CRAIG AND A GROUP OF STATER SENIOR EXECUTIVES TOOK STATER PRIVATE IN 1987 IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE CRAIG CLOSED AT 11875 UP 875 CENTS 9308090062 930809 NORTHWEST AIR COMPLETES NEW FINANCE LABOR PACTS MINNEAPOLIS NORTHWEST AIRLINES SAID IT COMPLETED THE FINAL AGREEMENTS IN THE RESTRUCTURING OF ITS FINANCES AND LABOR CONTRACTS THE AIRLINE'S FLIGHT ATTENDANTS BECAME THE LAST MAJOR LABOR GROUP TO APPROVE THE NEW PACKAGE AT THE END OF JULY CLEARLING THE WAY FOR THE FINAL AGREEMENTS AS PART OF THE NEW PACT NORTHWEST EMPLOYEES WILL GRANT 886 MILLION IN CONCESSIONS OVER THREE YEARS IN RETURN FOR STOCK AND SEATS ON THE COMPANY'S BOARD THE PACT ALSO CONTAINS WHAT NORTHWEST'S UNIONS SEE AS IMPROVED WORKING CONDITIONS THE AIRLINE A UNIT OF WINGS HOLDINGS INC MINNEAPOLIS SAID THE NEW PACTS WILL ENABLE IT TO SUBSTANTIALLY REDUCE OPERATING COSTS AND RESTRUCTURE ITS DEBT AND OTHER FINANCIAL COMMITMENTS 9308090061 930809 LETTERS TO THE EDITOR NOTHING TO SNICKER AT MARS CANDIES ARE INDEED UBIQUITOUS IN RUSSIA JULY 13 MARKETSCAN BUT AS OUR 10YEAROLD PROVED ON A RECENT TRIP TO ENGLAND AND RUSSIA LOYALTY TO SNICKERS IS A FLEETING THING AT LEAST FOR AN AMERICAN CHILD IN ENGLAND OUR SON DISCOVERED CADBURY'S CADBURY'S EVERYTHING FROM BARS TO CHOCOLATE BREAK AN INSTANT POWDER FOR HOT CHOCOLATE WHICH I MADE FOR HIM IN OUR HOTEL THANKS TO CAREFUL RATIONING I MANAGED TO KEEP HIM OFF A CADBURY HIGH BUT ONCE IN RUSSIA OUR VIGILANCE FELL BEFORE THE ONSLAUGHT OF SNICKERS THEY WERE EVERYWHERE HE CONSUMED MORE SNICKERS IN TWO WEEKS IN RUSSIA THAN HE HAD IN A YEAR BACK HOME 9308090060 930809 BUSINESS BRIEF ST JOE PAPER CO NET INCOME PLUNGED 76 DURING THE SECOND QUARTER ST JOE PAPER CO JACKSONVILLE FLA SAID NET INCOME PLUMMETED 76 IN THE SECOND QUARTER EARNINGS FELL TO 753000 OR TWO CENTS A SHARE FROM THE YEARBEFORE 32 MILLION OR 10 CENTS A SHARE NET SALES AND OPERATING REVENUE ROSE TO 1505 MILLION FROM 1436 MILLION THE FOREST PRODUCTS DIVISION OF THE COMPANY HAD LOWER RESULTS BECAUSE OF A DROP IN LINERBOARD PRICES AND OVERCAPACITY IN THE INDUSTRY THE COMPANY SAID THE SUGAR DIVISION POSTED LOWER PROFIT BECAUSE OF POOR WEATHER PROFIT IN THE REALESTATE AREA DECREASED SLIGHTLY AND EARNINGS INCREASED IN THE TRANSPORTATION AND COMMUNICATIONS UNITS ST JOE PAPER SAID ST JOE PAPER CO OPERATES FIVE BUSINESS AREAS INCLUDING FOREST PRODUCTS TRANSPORTATION REALESTATE DEVELOPMENT SUGAR AND COMMUNICATIONS 9308090059 930809 WHAT'S NEWS BUSINESS AND FINANCE CLINTON PLANS TO SIGN INTO LAW HIS 496 BILLION DEFICITREDUCTION PACKAGE THIS WEEK THE BILL WILL RAISE TAXES ON THE WEALTHY AND CORPORATIONS WHILE TRIMMING DEFENSE MEDICARE AND OTHER PROGRAMS AT THE SAME TIME THE MEASURE WILL PROVIDE BILLIONS OF DOLLARS IN TAX INCENTIVES FOR BUSINESSES AND THE POOR THE SENATE PASSED THE BILL FRIDAY AFTER GORE BROKE A TIE THE CONSENSUS AMONG SOME LEADING FORECASTERS IS THAT CLINTON'S PLAN WILL SLIGHTLY CRIMP ECONOMIC PERFORMANCE IN THE SHORT RUN WHILE PROVIDING A MODEST BOOST OVER THE LONG TERM THE BILL GIVES INVESTORS IN SOME SMALL FIRMS A CAPITALGAINS TAX BREAK KODAK DIRECTORS OUSTED CHAIRMAN KAY WHITMORE AFTER BECOMING FRUSTRATED WITH HIS FAILURE TO MAKE QUICK AND DEEP COST CUTS THE COMPANY IS SEEKING A SUCCESSOR WHO WON'T NEED PRODDING TO MAKE SUCH CUTS KODAK STOCK SURGED 325 OR 59 TO 58625 THE ECONOMY GENERATED 162000 NEW JOBS LAST MONTH BUT CONDITIONS STILL SUGGEST THE ECONOMY IS SLUGGISH MOST OF THE GROWTH WAS IN LOWERPAYING JOBS THE UNEMPLOYMENT RATE FELL TO 68 BUT ROUNDING MADE THE DROP LOOK LARGER THAN IT ACTUALLY WAS A DUPONT OFFICIAL MISCHARACTERIZED IN FEDERAL COURT TESTIMONY THE EPA'S CONCERNS ABOUT THE COMPANY'S BENLATE FUNGICIDE THE AGENCY SAID THE EPA'S REBUKE CAME IN A TRIAL OF BENLATE CROPDAMAGE COMPLAINTS MOTOROLA BOUGHT THE RIGHTS TO USE MICROSOFT'S POWERFUL OPERATING SYSTEM WINDOWS NT AND IS MODIFYING IT TO RUN ON MOTOROLA'S POWERPC CHIPS VOLKSWAGEN ACKNOWLEDGED THAT POTENTIALLY SENSITIVE GENERAL MOTORS DOCUMENTS WERE DESTROYED BY EXGM EMPLOYEES SOON AFTER THEY JOINED VW THE GERMAN CAR MAKER SAID THE DISCLOSURE CONFIRMED ITS LACK OF INVOLVEMENT IN THE MATTER BUT GM SAID IT SUPPORTED ALLEGATIONS OF INDUSTRIAL ESPIONAGE GENERAL MOTORS IS STICKING WITH ITS GOAL OF CUTTING ITS 35 BILLION NORTH AMERICAN PURCHASING BUDGET BY 4 BILLION ANNUALLY THE CAR MAKER'S NEW PURCHASING CHIEF TOLD SUPPLIERS FEDERATED DEPARTMENT STORES WON A TEMPORARY RESTRAINING ORDER BARRING ROGER FARAH CHAIRMAN OF ITS MERCHANDISING DIVISION FROM NEGOTIATING FOR OR ACCEPTING A JOB AT MACY SUN MICROSYSTEMS SAID THE NATIONAL SECURITY AGENCY SUSPENDED A CONTRACT VALUED AT UP TO 200 MILLION FOR A CLASSIFIED WORKSTATION AFTER COMPETITORS COMPLAINED THAT SUN MISREPRESENTED THE MACHINE'S PERFORMANCE THE FARM CREDIT SYSTEM IS PLANNING TO DEFER THE DEBT PAYMENTS OF THOUSANDS OF BORROWERS IN THE WAKE OF RECORD RAINS IN THE MIDWEST LONDON AND PARIS SHARES ROSE SHARPLY TO RECORDS AS INVESTORS CONTINUED TO HOPE FOR LOWER EUROPEAN INTEREST RATES TO SPUR ECONOMIC REBOUNDS JAPAN'S GOVERNMENT ASKED THE NATION'S IMPORTERS TO RESTRAIN PURCHASES OF FOREIGN BEEF A MOVE LIKELY TO ANGER THE US AND OTHER MEAT EXPORTERS JAPAN SAID RISING IMPORTS HAVE PUSHED DOWN PRICES HURTING CATTLE RAISERS INSURERS OF MCORP'S OFFICERS AND DIRECTORS IN ITS MBANK THRIFT UNIT PAID REGULATORS 399 MILLION IN EXCHANGE FOR DROPPING POTENTIAL CLAIMS AGAINST THE COMPANY'S 20 FAILED BANKS BONDS LEHMAN BROTHERS TREASURY INDEX 538700 OFF 162 COMMODITIES OIL 1727 A BARREL OFF 30 CENTS DOW JONES FUTURES INDEX 12858 OFF 135 SPOT INDEX 12428 OFF 075 DOLLAR 10441 YEN UP 041 16965 MARKS OFF 00140 9308090058 930809 BUSINESS BRIEF RAYTHEON CO BUSINESSJET UNIT PURCHASE COMPLETED FOR 372 MILLION RAYTHEON CO SAID IT COMPLETED THE ACQUISITION OF BRITISH AEROSPACE PLC'S BUSINESSJET UNIT FOR 372 MILLION THE PURCHASE IS EXPECTED TO HELP RAYTHEON LEXINGTON MASS MOVE BEYOND ITS CORE DEFENSE BUSINESS AND ENABLE BRITISH AEROSPACE TO REDUCE DEBT AND BETTER FOCUS ON ITS PRINCIPAL BUSINESSES INCLUDING AUTOMOBILES AND DEFENSE THE NEW RAYTHEON COMPANY WHICH WILL BE KNOWN AS RAYTHEON CORPORATE JETS CURRENTLY MANUFACTURES THE 125800 AND 1251000 MEDIUMSIZED BUSINESS JETS THE AIRCRAFT WILL BECOME KNOWN AS THE HAWKER 800 AND THE HAWKER 1000 RESPECTIVELY RAYTHEON SAID ITS AIRCRAFT PRODUCT SALES IN 1992 TOTALED 13 BILLION AND WILL EXCEED 17 BILLION FOLLOWING THE ACQUISITION THE BUSINESSJET UNIT HAS FACILITIES IN ENGLAND WALES AND LITTLE ROCK ARK 9308090056 930809 MARKETING BRIEF NOTED WHO'S NEWS WASHINGTON POST CO'S NEWSWEEK NAMED HAROLD I SHAIN AS US PUBLISHER OF THE WEEKLY MAGAZINE HE REMAINS NEWSWEEK'S EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER HE SUCCEEDS PETER W ELDREDGE NEWSWEEK SAID MR ELDREDGE IS LEAVING TO JOIN A PARTNERSHIP THAT EXPECTS TO ACQUIRE COMMUNICATIONS PROPERTIES NEWSWEEK ALSO NAMED GREGORY J OSBERG AS ASSOCIATE PUBLISHER HE RETAINS THE TITLE OF DIRECTOR OF ADVERTISING 9308090055 930809 REVIEW & OUTLOOK EDITORIAL PENNY'S THOUGHTS ONE OF THE SADDEST TRUTHS ABOUT CONGRESS TODAY IS THAT IT OPERATES ON A POLITICAL VARIATION OF GRESHAM'S LAW BAD MEMBERS ARE LITERALLY DRIVING GOOD MEMBERS INTO RETIREMENT EXHIBIT A IS THE SUDDEN RETIREMENT LAST WEEK OF REP TIM PENNY A RESPECTED 41YEAROLD MODERATE DEMOCRAT FROM AROUND ROCHESTER MINN REP PENNY RELUCTANTLY VOTED FOR PRESIDENT CLINTON'S BUDGET LAST WEEK LARGELY BECAUSE HE WANTS TO FIGHT THE DEFICIT NO MATTER WHAT THE MEANS BUT THE NEXT MORNING HE CALLED MR CLINTON'S BUDGET WELL SHORT OF WHAT IS NEEDED TO BALANCE THE BUDGET AND RESTORE ECONOMIC GROWTH HIS LARGER POINT WENT TO THE HEART OF CONGRESS'S INSTITUTIONAL FAILINGS IT IS EVIDENT TO ME THAT FAR TOO MANY POLITICIANS END UP STAYING FAR TOO LONG I DON'T WANT TO BE ONE OF THOSE IT IS UNFORTUNATE SOMEONE AS BRIGHT AND PRINCIPLED AS REP PENNY FINDS IT NECESSARY TO LEAVE CONGRESS ESPECIALLY GIVEN THE QUALITY OF MANY WHO WILL REMAIN THERE BUT HIS INDEPENDENT VIEWS IRRITATED HOUSE LEADERS WHO MADE CERTAIN HE STAYED ON THE POLICY SIDELINES DESPITE HIS EXPERTISE IN FISCAL MATTERS HE WAS NEVER INVITED TO SERVE ON THE BUDGET COMMITTEE EARLIER THIS YEAR HE SOUGHT A SEAT ON WAYS AND MEANS BUT WAS REBUFFED SINCE HIS FIRST ELECTION IN 1982 REP PENNY HAS FELT HE OWED HIS CONSTITUENTS MORE THAN BLIND PARTY LOYALTY HE HAS BACKED THE LINEITEM VETO AND BEEN A CONSISTENT FOE OF PORKBARREL SPENDING OF THE KIND HE DESCRIBES ELSEWHERE ON THIS PAGE AFTER BILL CLINTON'S ELECTION HE CRITICIZED A FELLOW MINNESOTA DEMOCRAT SENATOR PAUL WELLSTONE FOR TRYING TO LEAD THE PARTY TO THE LEFT THE CAREERIST CLIQUE THAT CONTROLS THE HOUSE VIEWS MEMBERS LIKE MR PENNY AS A THREAT TO THE POLITICAL MACHINE THEY'VE BUILT THEIR STRATEGY IS TO IGNORE THEM AND LET THE SENIORITY SYSTEM RENDER THEM SO IMPOTENT THAT THEY RETIRE IN FRUSTRATION TOO OFTEN THEY SUCCEED CAREERIST CONTROL IS CENTRAL TO CONGRESS'S REAL GRIDLOCK PROBLEM ITS REFUSAL TO RESTRUCTURE AND DOWNSIZE GOVERNMENT TO A LEVEL WHERE IT CAN FUNCTION EFFECTIVELY THE WAY TO END THE REAL GRIDLOCK IS WITH TERM LIMITS INDEED LAST WEEK'S BUDGET VOTES AND REP PENNY'S RETIREMENT SPEECH WERE NATIONWIDE TELEVISED ADVERTISEMENTS FOR THE TERM LIMIT MOVEMENT SO FAR VOTER INITIATIVES IN 15 STATES HAVE RESTRICTED THE TERMS OF 36 OF ALL HOUSE INCUMBENTS EIGHT MORE STATES WILL LIKELY APPROVE TERM LIMITS NEXT YEAR DESPITE COURT EFFORTS TO REVERSE THE VOTERS' DECISIONS THE OUTLOOK ON LEGAL CHALLENGES IS ALSO PROMISING THERE IS A LARGE TALENT POOL OF PEOPLE WHO WOULD MAKE VALUABLE MEMBERS OF CONGRESS BUT INCUMBENT PROTECTIONS AND THE KIND OF HAZING REP PENNY FACED NOW DISCOURAGE MANY OF THOSE PEOPLE FROM RUNNING TERM LIMITS WOULD ENSURE OPEN COMPETITIVE RACES AND A SWIFT RISE TO POSITIONS OF INFLUENCE FOR NEW MEMBERS WITH FRESH IDEAS THEY WOULD FREE THE SYSTEM FROM CAREER POLITICIANS AND PARTY HACKS AND ALLOW SERIOUS MEMBERS WITH INTERESTING IDEAS TO DO MORE THAN TALK 9308090054 930809 BUSINESS BRIEF GREAT CENTRAL MINES NL DE BEERS UNIT WITHDRAWS FROM AUSTRALIAN VENTURE GREAT CENTRAL MINES NL AN AUSTRALIAN DIAMOND AND GOLDEXPLORATION COMPANY SAID DE BEERS CONSOLIDATED MINES LTD OF SOUTH AFRICA HAS WITHDRAWN ITS UNIT FROM A JOINT VENTURE EXPLORING FOR DIAMONDS IN WESTERN AUSTRALIA JOSEPH GUTNICK GREAT CENTRAL CHAIRMAN SAID DE BEERS'S AUSTRALIAN UNIT STOCKDALE PROSPECTING LTD ADVISED HIS COMPANY IT HAS WITHDRAWN FROM THE JOINT VENTURE WHICH HAS FOUND SEVERAL MICROSCOPIC DIAMONDS ON LEASES IN AUSTRALIA'S NABBERU REGION GREAT CENTRAL SAID IN A STATEMENT THAT STOCKDALE'S EXIT FROM THE VENTURE WAS SPARKED BY A DECISION BY GREAT CENTRAL TO ATTEMPT TO TEST BULK SAMPLES TAKEN FROM THE LEASES SAMPLES WHICH STOCKDALE HAS SAID ARE OF LITTLE VALUE THE COMPANIES HAVE CLASHED SEVERAL TIMES PUBLICLY OVER NABBERU'S POTENTIAL 9308090053 930809 STILL THE COMPANY SHOULD GET CREDIT FOR PRACTICING RECYCLING BY STEVE STECKLOW STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON WHEN A MOTHER LEFT HER THREEYEAROLD DAUGHTER IN ANOTHER ROOM TO WATCH A VIDEOTAPE CALLED CARTOONS R FUN COLLECTION PORKY'S GARDEN SHE ASSUMED IT HAD JUST THREE CARTOONS FEATURING PORKY PIG BUT THAT'S NOT ALL FOLKS THE CARTOONS IT TURNED OUT WERE FOLLOWED BY 15 MINUTES OF HARDCORE PORNOGRAPHY WHICH PROMPTED THE LITTLE GIRL TO RUN TO HER MOTHER AND SAY FIX THE TAPE AND THE MOTHER TO CONTACT THE STATE POLICE AND THE MASSACHUSETTS ATTORNEY GENERAL'S OFFICE NOW THE REDFACED DISTRIBUTOR IS RECALLING HUNDREDS OF COPIES OF THE TAPE IT'S A VERY UNFORTUNATE SITUATION SAYS COREY S KUPFER ATTORNEY FOR VIDTAPE INC THE WEST BABYLON NY COMPANY THAT DISTRIBUTED THE OFFENDING TAPE MY CLIENT CERTAINLY DIDN'T INTEND TO DO IT IT WOULD BE CRAZY HE'S IN THE BUSINESS OF PRODUCING CARTOONS FOR CHILDREN THE PROBLEM SAYS MR KUPFER STEMS FROM VIDTAPE'S MONEYSAVING PRACTICE OF RECORDING MATERIAL ON USED VIDEOTAPES WHICH ARE SUPPOSED TO BE BLANK IN THE PORKY'S GARDEN CASE HOWEVER THE TAPE APPARENTLY CONTAINED AN OLD PORNO FLICK THAT HADN'T BEEN ERASED AND BECAUSE THE MOVIE WAS LONGER THAN THE THREE CARTOONS THE TAPE HAD AN UNEXPECTED XRATED ENDING IT WAS STANDARD PORNOGRAPHIC ADULT MATERIAL INVOLVING EXPLICIT SEXUAL ACTS SAYS GEORGE WEBER CHIEF OF THE STATE ATTORNEY GENERAL'S CONSUMER PROTECTION DIVISION SO FAR VIDTAPE HASN'T RECEIVED ANY COMPLAINTS ABOUT OTHER PORKY'S GARDEN TAPES BUT THE COMPANY AGREED WITH THE ATTORNEY GENERAL'S OFFICE TO RECALL ALL PORKY'S GARDEN TAPES DISTRIBUTED IN MASSACHUSETTS AS MANY AS 2000 AND TO OFFER REFUNDS TO CONSUMERS AND RETAILERS AS FOR THE MOTHER WHO WISHES TO REMAIN ANONYMOUS SHE IS STILL UPSET SAYS HER ATTORNEY PAUL RICHARDSON HE SAYS THE WOMAN'S DAUGHTER RECEIVED THE VIDEO RECENTLY AS A PARTY FAVOR AT A CHILDREN'S BIRTHDAY PARTY IN SUBURBAN BOSTON THE HOST HANDED OUT ABOUT A DOZEN COPIES OF PORKY'S GARDEN TO FAMILY AND FRIENDS THE IMPORTANT THING IS TO RETRIEVE AS MANY TAPES AS THERE ARE AND TO HAVE THIS NOT HAPPEN AGAIN MR RICHARDSON SAYS MR KUPFER SAYS THE FOLKS AT VIDTAPE AGREE I HOPE YOU REALIZE THAT MY CLIENT IS NOT A BAD GUY IN THIS THING HE SAYS 9308090052 930809 LETTERS TO THE EDITOR BEER BUDDIES CONDUCT FIELD STUDY ON FOAM A PAL AND I BEING BEERGUZZLING BUDDIES READ WITH INTEREST YOUR JULY 7 ARTICLE BREWER SCIENTISTS DISTILL PHYSICS OF FOAM ABOUT HEINEKEN BREWERY SCIENTIST ALEXANDER RONTEL'S EXPERIMENTATION WITH THE EFFECT OF OIL ON BEER FOAM OUR REACTION WAS THAT MR RONTEL IS LEARNING THE HARD WAY WE LEARNED ABOUT BEER FOAM AND OIL AT THE BRATWURST FESTIVAL IN SHEBOYGAN WIS WE COMPARED BEER FOAM HEAD BEFORE AND AFTER A FEW BEERS AND BRATWURST SANDWICHES AND NOTICED THAT THE GREASE FROM THE BRATWURST BROKE DOWN THE FOAM HEAD SO WHAT YOU WASH DOWN THE BRATWURST WITH BEER NOT FOAM WHICH IS 75 CARBON DIOXIDE AND 25 BEER INSTEAD OF DOING AS THE SCIENTIST DID ADDING GLASS BEADS TO THE BEER TO PRODUCE FOAM ADD SALT IT DOES THE SAME THING AND IS DIGESTIBLE AND YOU DON'T NEED TO DUMP GOOD BEER SO MUCH FOR SCIENCE DABBLING IN BEER LET'S DO SOME EXPERIMENTING AT THE NEXT BRATWURST FESTIVAL AND WE WILL ALL GO HOME HAPPY 9308090048 930809 BUSINESS BRIEF COLUMBIA FEDERAL SAVINGS BANK CONVERSION TO A STOCK FIRM IS APPROVED BY US AGENCY COLUMBIA FEDERAL SAVINGS BANK WOODHAVEN NY SAID IT RECEIVED APPROVAL FROM THE FEDERAL OFFICE OF THRIFT SUPERVISION TO CONVERT A MUTAL SAVINGS BANK INTO A STOCK SAVINGS BANK COLUMBIA SAID THE HOLDING COMPANY IT FORMED AS PART OF THE CONVERSION HAVEN BANCORP INC WILL HOLD SUBSCRIPTION AND COMMUNITY OFFERINGS OF 43 MILLION SHARES OF COMMON STOCK PRICED IN THE RANGE OF 750 TO 10 A SHARE THE OFFERING WILL BE MADE TO EMPLOYEE BENEFIT PLANS ELIGIBLE DEPOSITORS AND BORROWERS AND THE PUBLIC ADAMS COHEN SECURITIES INC OF GREAT NECK NY WILL MANAGE THE OFFERINGS WHICH WILL CONTINUE THROUGH SEPT 10 COLUMBIA HAS ABOUT 11 BILLION IN ASSETS 9308090047 930809 BUSINESS BRIEF SUMITOMO RUBBER INDUSTRIES LTD CONTROLLER OF DUNLOP BRAND HAD 14 PRETAX PROFIT DROP SUMITOMO RUBBER INDUSTRIES LTD A MAJOR JAPANESE MAKER OF AUTOMOBILE TIRES AND RUBBER ITEMS AND WHICH CONTROLS DUNLOPBRAND PRODUCTS REPORTED PRETAX PROFIT DECLINED 14 FOR THE FIRST HALF NET INCOME FELL 79 TO 413 BILLION YEN 396 MILLION FROM 481 BILLION YEN THE YEAR EARLIER SALES DROPPED 57 TO 11633 BILLION YEN FROM 12341 BILLION YEN SIXMONTH SALES WERE HURT BY WEAK DEMAND AND THE YEN'S APPRECIATION SUMITOMO SAID EXPORTS ACCOUNTED FOR 16 OF SUMITOMO'S TOTAL SALES BUT THE YENVALUE OF REVENUE OF FOREIGNCURRENCYDENOMINATED EXPORTS DECLINED BECAUSE OF THE SHARP APPRECIATION IN THE YEN SINCE FEBRUARY THE COMPANY ADDED SUMITOMO LOWERED MODERATELY ITS PRETAX PROFIT AND SALES PROJECTIONS FOR 1993 9308090046 930809 COMMODITIES INDUSTRIALMETAL PRICES EXPECTED TO REBOUND AS FALLING INTEREST RATES BOOST CONSUMPTION BY NEIL BEHRMANN AND JEFFREY TAYLOR STAFF REPORTERS OF THE WALL STREET JOURNAL LONDON INDUSTRIAL METAL PRICES WHICH WERE VIRTUALLY MORIBUND FOR MORE THAN A YEAR ARE EXPECTED TO GET A BOOST IN THE NEXT 12 MONTHS AS FALLING EUROPEAN INTEREST RATES FUEL CONSUMPTION SLOW AND STEADY IMPROVEMENT IN THE US AND JAPANESE ECONOMIES ALSO SHOULD SPUR CONSUMPTION SAYS NICK MOORE METALS ANALYST AT ORD MINNETT LTD AFTER PEAKING LAST SUMMER THE PRICES OF BASE METALS HAVE FALLEN SHARPLY ON THE LONDON METAL EXCHANGE OR LME LEAD HAS PLUNGED 40 TO 186 CENTS A POUND NICKEL 36 TO 223 A POUND ZINC 34 TO 41 CENTS A POUND TIN 30 TO 222 A POUND COPPER 23 TO 88 CENTS A POUND AND ALUMINUM 10 TO 558 CENTS A POUND YET BROKERS WHO SPECIALIZE IN MINING ARE HEARTENED BY A SHARP UPTURN IN THE STOCK PRICE OF PUBLICLY TRADED AUSTRALIAN NORTH AMERICAN AND EUROPEAN BASE METALPRODUCING COMPANIES SUCH SURGES IN SHARE PRICES ANALYSTS SAY OFTEN PREVIEW COMMODITY PRICE REVIVALS AT THE BEGINNING OF THE YEAR A SMART REVIVAL IN GOLD STOCK PRICES ANTICIPATED A SURGE IN BULLION MR MOORE SAYS THE PRICE OF COPPER ROSE IN RECENT WEEKS LARGELY BECAUSE OF STRONG BUYING BY JAPANESE AND OTHER ASIAN INDUSTRIAL USERS THE STRONG YEN REDUCED COPPER PRICES MARKEDLY FOR JAPANESE BUYERS ANALYSTS SAID AS ASIAN PURCHASERS BOUGHT SEVERAL METALS MERCHANTS AND COMMODITY FUNDS THAT HAD SOLD COPPER SHORT IN THE HOPE THEY WOULD PROFIT FROM FALLING PRICES WERE FORCED TO COVER POSITIONS TO REDUCE LOSSES ON THE LME AS A RESULT OF THESE PURCHASES MAINLY IN THE OPTIONS MARKET COPPER PRICES RALLIED FURTHER MANY MARKET STRATEGISTS AND STOCK TRADERS WATCH INDUSTRIAL COMMODITIES LIKE BASE METALS FOR HINTS OF POSSIBLE INFLATIONARY ACTIVITY IN THE GLOBAL ECONOMY ANALYSTS SAY IT IS FAR TOO EARLY TO DRAW ANY LINKS BETWEEN BASEMETAL PRICES AND INFLATION YET IF METAL PRICES BEGIN TO RISE AND AUTO AND OTHER MANUFACTURERS ARE ABLE TO PASS ON THE INCREASED COSTS OF THE METALS TO CONSUMERS IT COULD HELP TO BOOST INFLATION THEY SAY PRICES ARE DEPRESSED MAINLY BECAUSE OF HUGE LME BASEMETAL STOCKPILES ANALYSTS SAY INVENTORIES GREW BECAUSE OF FOUR YEARS OF ECONOMIC SLOWDOWN AND HEAVY SALES BY THE COMMONWEALTH OF INDEPENDENT STATES WHICH ARE OFFSETTING REDUCTIONS BY WESTERN PRODUCERS THEY SAY COPPER STOCKPILES SURGED TO 471000 METRIC TONS FROM 109000 TONS AT THE END OF 1989 ALUMINUM TO 1970000 FROM 57500 ZINC TO 721000 FROM 53850 LEAD TO 276000 FROM 41550 NICKEL TO 102000 FROM 2800 AND TIN TO 21350 FROM 18775 BECAUSE DEMAND IS FLAT THE MARKETS ARE WELL SUPPLIED SAYS ANGUS MACMILLIAN ANALYST AT BILLITONENTHOVEN METALS LTD HIGH INVENTORIES AT THE EXCHANGE WILL LIMIT PRICE REVIVALS UNLESS THERE ARE SUBSTANTIAL PRODUCTION CUTS SAYS WILLIAM ADAMS METALS ANALYST AT RUDOLF WOLFF LTD & CO SOME EUROPEAN ALUMINUM PRODUCERS HAVE PERMANENTLY REDUCED OUTPUT AS HAVE THEIR NORTH AMERICAN COUNTERPARTS PITTSBURGHBASED ALUMINUM CO OF AMERICA RECENTLY ANNOUNCED CUTS AND METALS TRADERS ARE WATCHING RIVALS ALCAN ALUMINUM OF QUEBEC AND REYNOLDS METALS OF RICHMOND VA TO SEE IF THEY FOLLOW SUIT WITHOUT SUCH CUTBACKS ALUMINUM STOCKS ARE SO HIGH THAT THERE'S A DANGER THE MARKET WILL SELL OFF YET AGAIN SAID TED ARNOLD METALS ANALYST FOR MERRILL LYNCH IN LONDON WORLDWIDE HOWEVER THE LEVEL OF METAL INVENTORIES ISN'T SERIOUS SAYS MR MOORE OF ORD MINNETT SOME MANUFACTURERS ARE LIVING HAND TO MOUTH BECAUSE OF LOW PRICES HE SAYS AND PRODUCER INVENTORIES ALSO ARE LOW MR MOORE ESTIMATES THAT WORLDWIDE NICKEL INVENTORIES ACCOUNT FOR 16 WEEKS' CONSUMPTION ALUMINUM AND ZINC 13 WEEKS TIN 12 WEEKS AND COPPER SEVEN WEEKS FALLING INTEREST RATES WILL ENCOURAGE CONSUMERS TO RAISE STOCKS AGAIN AND ONCE CONSUMPTION REVIVES IT WON'T TAKE LONG TO WHITTLE DOWN THE SURPLUSES HE SAYS THE PRICE OF NICKEL COULD RISE SHARPLY DEPENDING ON DEMAND FOR STAINLESS STEEL OF WHICH NICKEL IS A COMPONENT AND HOW MUCH OF THE BASE METAL RUSSIA AND THE REST OF THE CIS DECIDES TO SELL ANALYSTS SAY IF THE RUSSIANS DON'T FLOOD THE MARKET NICKEL SHOULD BE OFF TO THE RACES MR ARNOLD SAYS IT'S ABOUT 225 A POUND NOW AND WE COULD BE LOOKING AT 3 NICKEL BY THE MIDDLE OF NEXT YEAR ALTHOUGH REDUCTIONS AND WESTERN CONSUMPTION SHOULD HELP UNDERPIN METALS PRICES IN THE COMING YEAR MUCH WILL DEPEND ON CIS SALES CIS PRODUCTION IS BEGINNING TO SLIDE BUT DOMESTIC DEMAND IS SO SLACK THAT SURPLUS OUTPUT STOCKPILES AND METALS SCRAP ARE BEING DUMPED ON WESTERN MARKETS DEALERS SAY THE CREDIT SQUEEZE AND EXPECTED SLOWDOWN OF CHINA ALSO COULD DENT CHINESE COPPER AND ALUMINUM IMPORTS SAYS PETER PEMBERTON A DIRECTOR AT AMALGAMATED METAL TRADING LTD 9308090045 930809 BUSINESS BRIEF MITSUBISHI HEAVY INDUSTRIES LTD VENTURE IS PLANNED TO BUILD AIR CONDITIONERS IN CHINA MITSUBISHI HEAVY INDUSTRIES LTD IS PLANNING JOINTVENTURE PRODUCTION OF AIR CONDITIONERS IN CHINA A SPOKESWOMAN FOR THE JAPANESE MACHINERY MAKER SAID THE COMPANY HOPES TO SIGN A CONTRACT AS EARLY AS MIDAUGUST WITH A COMPANY IN TSINGTAO IN CHINA'S SHANDONG PROVINCE A SPOKESWOMAN SAID SHE DECLINED TO REVEAL THE NAME OF THE POTENTIAL PARTNER BUT SAID THE JOINT VENTURE WOULD BEGIN PRODUCING ROOM AND OFFICE AIR CONDITIONERS IN 1994 MITSUBISHI HEAVY DOUBLED ITS SALES OF AIR CONDITIONERS IN CHINA TO 300000 UNITS IN 1992 THE SPOKESWOMAN SAID THOSE MACHINES SHE SAID WERE IMPORTED FROM THAILAND AND JAPAN MITSUBISHI HEAVY ALREADY MANUFACTURES AIR CONDITIONERS IN JAPAN THAILAND SAUDI ARABIA AND THE US 9308090044 930809 BUSINESS BRIEF MALAYAWATA STEEL BHD PRETAX PROFIT IMPROVED 5 FOR YEAR ENDED MARCH 31 MALAYSIA'S MALAYAWATA STEEL BHD A STEEL MANUFACTURING GROUP REPORTED A 5 RISE IN GROUP PRETAX PROFIT FOR ITS FISCAL YEAR WHICH ENDED MARCH 31 PRETAX PROFIT ROSE TO 542 MILLION RINGGIT 213 MILLION UP FROM YEAREARLIER 515 MILLION RINGGIT ON 2 GROWTH IN REVENUE TO 392 MILLION RINGGIT FROM 386 MILLION RINGGIT PERSHARE EARNINGS FOR THE YEAR INCREASED 3 TO 39 SEN 15 CENTS FROM 38 SEN TOTAL DIVIDEND FOR THE YEAR GREW 20 TO 18 SEN FROM 15 SEN MALAYAWATA SAID THAT DESPITE A MORE COMPETITIVE ENVIRONMENT STIFF GROWTH IN STEEL DEMAND WHICH IT EXPECTS TO CONTINUE IN THE CURRENT FISCAL YEAR LED TO THE STRONGER NUMBERS FOR THE YEAR THE GROUP'S RESULTS WERE IN LINE WITH ANALYSTS' FORECASTS 9308090043 930809 BUSINESS BRIEF CARTER HOLT HARVEY LTD FORESTRY COMPANY BASED IN NEW ZEALAND SELLS SAWMILL CARTER HOLT HARVEY LTD A NEW ZEALANDBASED FORESTRY CONCERN SAID IT SOLD A SAWMILL WITH AN ANNUAL PRODUCTION OF AROUND 20000 CUBIC METRIC TONS FOR AN UNDISCLOSED SUM TONY COYTE CHIEF EXECUTIVE FOR CARTER HOLT'S FORESTRY AND WOOD PRODUCTS OPERATIONS SAID IN AN INTERVIEW IN WELLINGTON THAT THE SALE WAS MADE TO FORESTRY CONCERN WINSTONE PULP INTERNATIONAL LTD MR COYTE SAID THAT THE PRICE WASN'T SUBSTANTIAL AND THAT PROCEEDS WILL BE USED AS PART OF HIS COMPANY'S NORMAL CASH FLOW HE SAID THE SALE IS PART OF A CONTINUING RATIONALIZATION PROGRAM BY CARTER HOLT WHICH INVOLVES PLACING A GREATER EMPHASIS ON ITS LARGER SAWMILLS NEAR ITS OWN FORESTS THE MILL ACCOUNTED FOR ABOUT 3 OF CARTER'S ANNUAL TIMBER PRODUCTION AND IS LOCATED IN NEW ZEALAND'S NORTH ISLAND 9308090042 930809 AUSTRALIAN REGULATOR DOESN'T FAULT KMART IN PACT WITH GROCER SPECIAL TO THE WALL STREET JOURNAL CANBERRA AUSTRALIA THE NATION'S ANTITRUST REGULATOR THE TRADE PRACTICES COMMISSION SAID FRIDAY IT HASN'T FOUND ANY EVIDENCE THAT KMART CORP BROKE COMPETITION PROVISIONS OF AUSTRALIA'S TRADE PRACTICES ACT BY BUYING A 108 STAKE IN INDEPENDENT HOLDINGS LTD THE COMMISSION RECEIVED A COMPLAINT THAT KMART CONTRAVENED THE ACT BECAUSE IT OWNS 215 OF COLES MYER LTD WHICH IS AUSTRALIA'S LARGEST RETAILER AND A MAJOR COMPETITOR OF INDEPENDENT HOLDINGS A GROCERY WHOLESALER AND RETAILER THE COMMISSION FOUND THAT KMART ACTING IN ITS OWN RIGHT IS NOT IN BREACH OF THE ACT AND IS NOT IN A POSITION OF CONTROL AT INDEPENDENT HOLDINGS IT ALSO FOUND NO EVIDENCE THAT KMART AND COLES MYER ACTED IN CONCERT IN THE ACQUISITION ROWLEY SPIERS A SPOKESMAN FOR THE COMMISSION SAID IN AN INTERVIEW THAT EVEN IF KMART AND COLES MYER HAD ACTED IN CONCERT IT'S UNLIKELY THE ACQUISITION WOULD HAVE BEEN VIEWED AS A BREACH OF THE ACT ALTHOUGH THE COMMISSION HAS FINISHED ITS INQUIRY INTO THE COMPLAINT ABOUT KMART AND COLES MYER IT WILL CONTINUE TO MONITOR THE SITUATION BECAUSE THE KMART PURCHASE IS ONE OF SEVERAL DEVELOPMENTS IN THE GROCERY INDUSTRY WHICH ARE ALL INTERDEPENDENT MR SPIERS SAID FOUR AUSTRALIAN WHOLESALE GROCERY GROUPS ANNOUNCED PLANS FRIDAY TO FORM JOINTLY A SINGLE INDEPENDENT GROCERY WHOLESALING GROUP THE GROUPS WHICH INCLUDE INDEPENDENT HOLDINGS SAID THEY'RE MERGING TO COMPETE MORE EFFECTIVELY AGAINST LARGE SUPERMARKET OPERATORS SUCH AS COLES MYER THE GROUPS SAID THE MERGER WAS SUBJECT TO A NUMBER OF CONDITIONS INCLUDING AUTHORIZATION BY THE COMMISSION MR SPIERS SAID THAT THOUGH THE COMMISSION HASN'T YET RECEIVED A SUBMISSION FROM THE COMPANIES INVOLVED THEIR STATEMENT IMPLIED THEY BELIEVED THE MERGER MAY BREACH COMPETITION PROVISIONS IN THE ACT HE SAID THE COMPANIES MAY REQUEST THAT THE MERGER BE ALLOWED BECAUSE IT WILL CONTRIBUTE TO THE PUBLIC GOOD 9308090041 930809 INTERNATIONAL BRIEF THORN EMI PLC CONCERN ENDS TALKS TO SELL BUSINESS TO UK COMPANY BRITAIN'S THORN EMI PLC ENDED TALKS WITH GENERAL ELECTRIC PLC OF THE UK TO SELL ITS DEFENSE ELECTRONIC BUSINESS THORN DISCLOSED THE TALKS LAST MONTH AFTER MEDIA LEAKS THESE DISCUSSIONS HAVE PROVED INCONCLUSIVE AND THEREFORE HAVE BEEN BROUGHT TO A CLOSE THORN SAID IN A STATEMENT FRIDAY THE TIMES NEWSPAPER OF LONDON REPORTED IN JULY THAT THORN HAD STRUCK A TENTATIVE AGREEMENT WITH GENERAL ELECTRIC WHICH HAS NO RELATION TO THE US COMPANY OF THE SAME NAME TO SELL THE DEFENSE BUSINESS FOR 160 MILLION US2392 MILLION THE NEWSPAPER SAID IT HAD BEEN TIPPED OFF BY THORN'S UNIONS WHO WERE CONCERNED ABOUT JOB LOSSES THORN HAS BEEN TRYING TO CUT BACK ITS BUSINESS TO MUSIC RECORDING AND APPLIANCE RENTAL IN JUNE IT SOLD ITS LIGHTING DIVISION TO INVESTCORP A BAHRAINBASED INVESTMENT FIRM FOR 162 MILLION 9308090040 930809 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT AMVESTORS FINANCIAL CORP FOUR MILLION SHARES VIA SALOMON BROTHERS INC BORGWARNER AUTOMOTIVE INC INITIAL 35 MILLION SHARES VIA MERRILL LYNCH INC CENCALL COMMUNICATIONS CORP INITIAL FOUR MILLION SHARES VIA MERRILL LYNCH COLUMBIA BANKING SYSTEM INC 1250000 SHARES VIA KEMPER SECURITIES INC CROWN AMERICA REALTY TRUST INITIAL 24 MILLION SHARES UP FROM 21 MILLION VIA PAINEWEBBER INC DAVCO RESTAURANTS INC INITIAL 26 MILLION SHARES VIA FIRST BOSTON CORP EQUITY RESIDENTIAL PROPERTIES TRUST INITIAL 109 MILLION SHARES OF BENEFICIAL INTEREST VIA MERRILL LYNCH EZ COMMUNICATIONS INITIAL 34 MILLION SHARES 2750000 SHARES OFFERED BY THE COMPANY VIA FIRST BOSTON FIRST USA INC FIVE MILLION SHARES VIA MERRILL LYNCH HAWAIIAN ELECTRIC INDUSTRIES INC 1750000 SHARES VIA SMITH BARNEY HARRIS UPHAM & CO IMAGE INDUSTRIES INC INITIAL 3250000 SHARES VIA LEHMAN BROTHERS KURZWEIL APPLIED INTELLIGENCE INC INITIAL 21 MILLION SHARES VIA ROBERTSON STEPHENS & CO MANUGISTICS GROUP INC INITIAL 24 MILLION SHARES 18 MILLION OFFERED BY THE COMPANY VIA ALEX BROWN & SONS MGM GRAND INC 17 MILLION SHARES VIA BEAR STEARNS & CO HILLSBOROUGH COUNTY FLA 139750000 SERIES 1993 CAPITAL IMPROVEMENT PROGRAM REFUNDING REVENUE BONDS VIA COMPETITIVE BID ILLINOIS 900 MILLION SERIES AUGUST 1993 GENERAL OBLIGATION CERTIFICATES VIA COMPETITIVE BID BRAZOS HIGHER EDUCATION AUTHORITY INC TEXAS 206 MILLION STUDENT LOAN REFUNDING REVENUE BONDS VIA A SMITH BARNEY SHEARSON GROUP NEW YORK 3524 MILLION FISCAL 1994 SERIES B GENERAL OBLIGATION BONDS1524 MILLION VIA A PRYOR MCLENDON COUNTS & CO GROUP AND 150 MILLION VIA A GRIGSBY BRANDFORD & CO GROUP REGIONAL AIRPORT AUTHORITY OF LOUISVILLE & JEFFERSON COUNTIES KY 2386 MILLION SERIES AB AND C AIRPORT SYSTEM REVENUE BONDS VIA A SMITH BARNEY SHEARSON GROUP VALDEZ ALASKA 150 MILLION MARINE TERMINAL REFUNDING REVENUE BONDS FOR THE BRITISH PETROLEUM CO PIPELINES ALASKA PROJECT VIA A FIRST BOSTON GROUP VIRGINIA DEPARTMENT OF TRANSPORTATION 125 MILLION TRANSPORTATION REVENUE BONDS VIA A LEHMAN BROTHERS GROUP 9308090039 930809 ENTERPRISE SMALL BUSINESSES DEBATE PROVISION OF NEW BUDGET BILL CAPITAL GAINS TAX BREAK COULD OPEN THE DOOR TO LONGTERM INVESTORS BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON INVESTORS IN MANY SMALL COMPANIES CAN GET A BIG CAPITALGAINS TAX BREAK UNDER THE BUDGET BILL THAT CONGRESS PASSED BUT SMALL BUSINESS WAS LEFT DEBATING A PRESSING POINT WILL THE INCENTIVE HELP COMPANIES ATTRACT MANY NEW INVESTORS UNDER A PROVISION OF THE BILL INVESTORS WHO BUY STOCK IN SOME SMALL COMPANIES AND HOLD IT FOR AT LEAST FIVE YEARS CAN CUT THEIR CAPITAL GAINS TAXES ON THE INVESTMENT IN HALF SURVIVAL OF THE PROVISION CAME AS A LATE SURPRISE BECAUSE THE SENATE VERSION OF THE BILL OMITTED IT ENTIRELY SUPPORTERS OF THE BREAK INCLUDING PRESIDENT CLINTON SAY THE PROVISION WILL SPUR MORE LONGTERM INVESTMENT IN THE GROWING COMPANIES THAT ARE MOST LIKELY TO CREATE JOBS HIGHTECHNOLOGY CONCERNS WORKING ON ADVANCED ELECTRONIC PRODUCTS AND BIOTECHNOLOGY FIRMS DEVELOPING DRUGS ARE CONSIDERED AMONG THE MOST LIKELY TO BENEFIT THAT IS BECAUSE THEY RELY HEAVILY ON THE PRIVATE VENTURE CAPITAL MARKETS CAPITAL MARKETS HAVE COLLAPSED FOR SMALL BIOTECH COMPANIES WITH ALL THE TALK ABOUT THE CONTROL AND REVIEW OF DRUG PRICES SAYS CHUCK LUDLUM LOBBYIST FOR THE BIOTECHNOLOGY INDUSTRY ORGANIZATION NO ONE WILL LOAN THEM A DIME EQUITY CAPITAL IS THE ONLY FORM OF CAPITAL THEY CAN OBTAIN SO THIS THE TAX BREAK IS PERFECTLY SUITED TO OUR INDUSTRY BUT CRITICS ARGUE THAT THE BREAK IS TOO LIMITED TO HAVE ANY SIGNIFICANT EFFECT THEY ALSO ARGUE THAT INVESTORS PROBABLY WOULD HAVE MADE THE LONGTERM INVESTMENTS WITHOUT THE TAX BREAK BESIDES A LARGE AMOUNT OF VENTURE CAPITAL COMES FROM PENSION FUNDS AND OTHER INSTITUTIONS THAT DON'T PAY CAPITAL GAINS TAXES THE CAPITAL GAINS TAX BREAK IS A GOOD STEP IN THE RIGHT DIRECTION BUT NOT A BIG STEP SAYS MARTIN REGALIA CHIEF ECONOMIST FOR THE US CHAMBER OF COMMERCE TO QUALIFY FOR THE TAX BREAK A COMPANY CAN'T HAVE MORE THAN 50 MILLION IN ASSETS FURTHERMORE THE TAX BREAK IS NARROWLY CONCEIVED EXCLUDING INVESTMENT IN SERVICE PROVIDERS FARMS MINERALEXTRACTION BUSINESSES AND CERTAIN OTHERS STILL A NUMBER OF COMPANIES SAY THEY EXPECT THE NEW LAW TO HELP THEM ATTRACT INVESTORS JOHN HOLADAY PRESIDENT OF ENTREMED INC A ROCKVILLE MD COMPANY WORKING TO DEVELOP SEVERAL VACCINES SAYS THE NEW CAPITAL MEASURE COULD HELP HIS COMPANY DRAMATICALLY THE COMPANY IS DEVELOPING MEDICATIONS TO PREVENT CHOLESTEROL DEPOSITS AND COMBAT DRUGRESISTANT CANCERS MR HOLADAY HAS 12 EMPLOYEES AND HOPES TO HIRE 30 MORE BY THE END OF 1994 WE'RE TRYING TO PROVIDE HOPE FOR THE FUTURE IN A PRODUCT THAT WON'T BE ON THE MARKET FOR FIVE YEARS OR SO IT'S PRECISELY THOSE KIND OF LONGTERM INVESTORS WE WANT TO HAVE AT OUR SIDE HE SAYS ENTREMED HAS ATTRACTED SOME PRIVATE VENTURE CAPITAL AND MR HOLADAY'S GOAL IS TO TAKE THE COMPANY PUBLIC BUT HE SAYS HE MAY WELL HAVE TO RETURN TO THE PRIVATE VENTURE MARKETS OCEANIA HEALTH CARE SYSTEMS INC BASED IN PALO ALTO CALIF IS ANOTHER YOUNG COMPANY THAT EXPECTS TO BENEFIT THE THREEYEAR OLD CONCERN IS DEVELOPING A SOFTWARE PRODUCT THAT WILL CREATE ELECTRONIC MEDICAL RECORDS FOR PATIENTS ALLOWING A DOCTOR TO GAIN QUICK COMPUTER ACCESS TO A PATIENT'S RECORDS WHILE THE EXAMINATION OR TREATMENT IS IN PROGRESS OCEANIA HAS RAISED 4 MILLION FROM PRIVATE INDIVIDUALS SO FAR IT WILL PROBABLY NEED ANOTHER 10 MILLION TO 15 MILLION OVER THE NEXT 18 MONTHS SAYS ARNOLD SILVERMAN CHAIRMAN OF THE COMPANY AND OF THE AMERICAN ELECTRONICS ASSOCIATION MR SILVERMAN SAYS THE TARGETED CAPITAL GAINS TAX BREAK WILL ENCOURAGE VENTURE CAPITALISTS TO COMMIT SEED CAPITAL TO COMPANIES IN THEIR EARLY STAGES HE SAYS THE BREAK WILL ALSO HELP ASSURE ENTREPRENEURS WHO ARE CONSIDERING FOUNDING A COMPANY THAT THEY WILL GET A GOOD NET RETURN ON THEIR PERSONAL AND FINANCIAL INVESTMENTS AND THE EXECUTIVE ADDS IT COULD HELP THESE NEW FIRMS ATTRACT CAPABLE MANAGERS FROM LARGER COMPANIES BY OFFERING THEM TAXFAVORED EQUITY IN THE COMPANY I HOPE ONCE THE BENEFITS OF THIS ARE SEEN THE TAX BREAK WILL BE EXPANDED MR SILVERMAN SAYS AS ORIGINALLY PROPOSED BY SEN DALE BUMPERS AN ARKANSAS DEMOCRAT THE MEASURE WOULD HAVE APPLIED TO COMPANIES WITH UP TO 100 MILLION IN ASSETS THE BUMPERS BILL ALSO WOULD HAVE CUT CAPITAL GAINS TAXES FOR INVESTORS IN SUBCHAPTER S CORPORATIONS WHICH PAY TAXES AT THE INDIVIDUAL RATE AS WELL AS FOR FULLY INCORPORATED BUSINESSES THE TAX INCENTIVE WAS NARROWED WHEN THE HOUSE PASSED IT AND WAS CUT BACK FURTHER WHEN THE HOUSESENATE BUDGET CONFERENCE COMMITTEE ADOPTED IT AS IT STANDS ONLY INVESTMENTS IN COMPANIES WORTH 50 MILLION OR LESS QUALIFY INVESTMENTS IN SUBCHAPTER S CORPORATIONS WON'T BE ELIGIBLE FOR THE TAX BREAK THERE ARE TWO OTHER IMPORTANT LIMITATIONS ON USE OF THE PROVISION FIRST THE AMOUNT OF CAPITAL GAINS ELIGIBLE FOR THE TAX BREAK CANNOT BE MORE THAN 10 TIMES THE ORIGINAL INVESTMENT OR 10 MILLION SECONDLY IF THE INVESTOR MUST PAY THE ALTERNATIVE MINIMUM TAX THE AMOUNT OF CAPITAL GAINS EXCLUDED FROM TAX WOULD BE CUT IN HALF BECAUSE OF RESTRICTIONS ON THE TAX BREAK SOME ANALYSTS DOUBT THAT IT WILL HAVE SIGNIFICANT IMPACT I DON'T THINK WE SHOULD BANG ON THE PRESIDENT ABOUT THIS IT'S GOOD NEWS SAYS SAM STARR A PARTNER IN THE NATIONAL OFFICE OF COOPERS & LYBRAND THE ACCOUNTING FIRM BUT WILL IT GENERATE A LOT OF JOBS I JUST DON'T SEE THAT HERB LERNER A NATIONAL PARTNER WITH THE ACCOUNTING FIRM OF ERNST & YOUNG SAYS THERE ARE SEVERAL COMPLEX LIMITATIONS ON USING THE TAX BREAK MOREOVER TAX LAWS COULD CHANGE WITHIN THE FIVE YEARS AN INVESTOR MUST HOLD HIS STOCK WHEN YOU PUT ALL THAT TOGETHER I DON'T THINK IT ADDS UP TO A HILL OF BEANS FOR MOST SMALL BUSINESSES HE CONCLUDES THOUGH THE BREAK WAS EXCLUDED FROM THE SENATE BILL PRESIDENT CLINTON PRESSED HARD AS HOUSE AND SENATE CONFEREES WORKED ON A COMPROMISE VERSION OF HIS BUDGET DEMOCRATIC SENATORS DIANE FEINSTEIN OF CALIFORNIA AND JOSEPH LIEBERMAN OF CONNECTICUT WERE KEY PLAYERS IN INSISTING ON THE PROVISION PLENTY OF TECHNICALLY ADVANCED COMPANIES ARE BASED IN CALIFORNIA AND CONNECTICUT THE TAX BREAK HAS GIVEN SUCH COMPANIES AS WELL AS VENTURE CAPITAL TRADE GROUPS CAUSE TO CELEBRATE A VICTORY THE GROUPS CONDUCTED AN AGGRESSIVE LOBBYING CAMPAIGN ON THE ISSUE AND THEY MAY HAVE BENEFITED AS THE QUESTION OF HOW THE BUDGET WOULD AFFECT SMALL COMPANIES BECAME A MAJOR ISSUE IN RECENT WEEKS THE ADMINISTRATION HONESTLY FELT THERE WAS A CERTAIN MINIMUM THAT HAD TO BE DONE FOR SMALL BUSINESS IN THE BUDGET AND WITHOUT THAT THE ADMINISTRATION COULD LOSE THE PACKAGE SAYS ALLEN NEECE A LOBBYIST WHO REPRESENTS SEVERAL SMALL BUSINESS ASSOCIATIONS ENTREPRENEURS IN THE HIGHTECHNOLOGY COMMUNITY WERE WATCHING PRESIDENT CLINTON'S SUPPORT FOR THE PROPOSAL AS RECOGNITION OF THEIR EARLY POLITICAL SUPPORT FOR HIM THIS WILL ALLOW THE DIALOGUE WITH SILICON VALLEY AND THE HIGHTECH COMMUNITY TO GO FORWARD SAYS ED HATCHER LOBBYIST FOR THE AMERICAN ELECTRONICS ASSOCIATION THIS INDUSTRY IS VERY CONSERVATIVE BUT SOME OF THE INDUSTRY WENT DEMOCRATIC IN THE ELECTION THERE'S BEEN A LOT OF CONCERN RECENTLY ABOUT THE SHORTAGE OF SPENDING CUTS IN THE BUDGET THE CAPITAL GAINS ISSUE WAS VITAL 9308090038 930809 WHO'S NEWS LIMITED PUTS WEISS METHODOLOGY' TO TEST BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL COLUMBUS OHIO LONG BEFORE HIS PROMOTION IN JUNE TO LIMITED INC VICE CHAIRMAN MICHAEL WEISS HAD MADE A NAME FOR HIMSELF IN RETAILING CIRCLES AS A MASTER MERCHANT WHO BRINGS A MATHEMATICAL TURN OF MIND TO WHAT IS OFTEN A SEATOFTHEPANTS BUSINESS LAST FALL FOR EXAMPLE LIMITED'S CHAIRMAN LESLIE WEXNER DRAFTED MR WEISS TO HELP REVIVE SALES AT THE COMPANY'S LIMITED TOO GIRLSWEAR DIVISION MR WEISS'S DIAGNOSIS AFTER A TYPICALLY METHODICAL ANALYSIS MOST OF THE CHAIN'S BUSINESS CAME FROM TRENDY SINGLE ITEMS HE RECOMMENDED INTRODUCING MORE COORDINATED OUTFITS SO THAT SHOPPERS WOULD BUY SEVERAL PIECES AT A TIME LIMITED TOO ALSO ADOPTED THE WEISS CALENDAR A MERCHANDISING TIMETABLE MR WEISS DEVELOPED DURING 12 YEARS AS PRESIDENT OF EXPRESS THE 13 BILLION LIMITED DIVISION THAT GENERATES AN ESTIMATED 30 OF THE COMPANY'S OPERATING PROFIT MR WEISS'S SKILLS KNOWN AROUND LIMITED AS THE WEISS METHODOLOGY WILL GET THEIR MOST STRINGENT TEST IN COMING MONTHS AS THE 53YEAROLD MR WEISS STEPS UP TO HELP MR WEXNER REINVIGORATE THE 7 BILLION LIMITED APPAREL EMPIRE AFTER NEARLY THREE DECADES THE COMPANY IS SHOWING ITS AGE GROWING AT A SLOWER PACE AMID THE LINGERING RETAIL RECESSION AND KEEN COMPETITION FROM DISCOUNTERS AND DEPARTMENT STORES AT ITS LIMITED STORES DIVISION OPERATING PROFIT FELL 44 IN 1991 AND REMAINED FLAT IN 1992 SALES AT THE DIVISION THE COMPANY'S SECOND LARGEST HAVE SUFFERED BECAUSE ITS MERCHANDISE HAS FAILED TO GROW UP WITH ITS AGING BABYBOOMER CLIENTELE IT HAS LOST MARKET SHARE TO ITS SISTER EXPRESS DIVISION DEPARTMENT STORES AND OTHER RETAILERS MOST OF THE COMPANY'S SALES COME FROM FIVE MATURE BUSINESSES LIMITED STORES EXPRESS LANE BRYANT LERNER AND VICTORIA'S SECRET EACH WITH SALES OF MORE THAN 1 BILLION UNTIL RECENTLY ALL 15 OF LIMITED'S DIVISIONS OPERATED AUTONOMOUSLY COMPETING FIERCELY WITH ONE ANOTHER AND RARELY SWAPPING INFORMATION THAT TRADITION IS BEING ABANDONED IT IS MR WEXNER'S STATED GOAL TO NEARLY TRIPLE LIMITED'S ANNUAL SALES TO 20 BILLION IN THE NEXT DECADE COUNTING ON SURGING GROWTH OF NEW DIVISIONS SUCH AS STRUCTURE A MENSWEAR CHAIN AND BATH & BODYWORKS TOILETRIES STORES MR WEXNER VOWS TO BUILD BRIDGES ACROSS DIVISIONS AND HE VIEWS MR WEISS AS AN AGENT OF SUCH CHANGE AS VICE CHAIRMAN MR WEISS NOW OVERSEES LIMITED STORES EXPRESS STRUCTURE LIMITED TOO AND HENRI BENDEL WHICH TOGETHER ACCOUNT FOR ABOUT 45 OF THE CORPORATION'S REVENUE INDUSTRY PEOPLE BELIEVE THAT IF MR WEISS CAN SPREAD EXPRESS'S SUCCESSFUL MANAGEMENT PRACTICES THROUGHOUT THE COMPANY HE MAY ULTIMATELY BE NAMED COCHIEF EXECUTIVE WITH MR WEXNER WHO IS 58 YEARS OLD AND HAS BEEN SPENDING MORE TIME OF LATE IN REALESTATE DEVELOPMENT AND PHILANTHROPY IT WILL TAKE TIME FOR EACH DIVISION TO LEARN THE WEISS CALENDAR AND TO LEARN HIS METHOD OF SPOTTING PROBLEMS AND LOOKING AT NUANCES NOTES HARRY A IKENSON A RETAIL ANALYST AT MABON SECURITIES CORP BUT HE SAYS HE'S CONFIDENT MR WEISS IS THE RIGHT LEADER FOR THE JOB HE HAS THE TRACK RECORD AND THE RESPECT HE SAYS MICHAEL WEISS IS ONE OF THE BEST MERCHANTS IN RETAILING TODAY ADDS IRVING BENSON PRESIDENT OF CYGNE DESIGNS INC ONE OF LIMITED'S MAIN APPAREL CONTRACTORS HE HAS THE UNIQUE SKILLS TO ISOLATE THE 20 OR 30 KEY ITEMS WITH WHICH EXPRESS WILL DO 70 OF ITS BUSINESS ONE UNEXPECTED HITCH SHORTLY AFTER MR WEISS'S JUNE 3 PROMOTION HE SUFFERED WHAT COMPANY PRESS RELEASES TERMED A MILD CARDIAC EVENT AFTER BEING SIDELINED AT HOME FOR TWO WEEKS OF REST HE IS BACK ON THE JOB THOUGH HE NOW FORGOES HIS NAMESAKE WEISS BURGER AT THE COMPANY CAFETERIA A BACON CHEESEBURGER TOPPED WITH A FRIED EGG ANOTHER OF MR WEISS'S MANDATES IS TO STRENGTHEN THE DEPTH OF MERCHANDISING TALENT AT LIMITED IN RECENT YEARS AS MANAGERS WERE SHUFFLED AROUND TO RUN NEW DIVISIONS EXISTING BUSINESSES WERE SOMETIMES LEFT WITH A VACUUM AT THE TOP A MANAGEMENT TRAINING PROGRAM IS BEING DEVELOPED AND ALL LIMITED MANAGERS ARE ON NOTICE TO FOLLOW MR WEISS'S APPROACH TO PROMOTIONS AT EXPRESS HE SAYS NOBODY GETS PROMOTED UNTIL SOMEONE IS TRAINED TO TAKE THEIR PLACE MR WEISS WHO WEARS ARMANI SUITS AND OVERSIZED EYEGLASSES HAS A FLAIR FOR FASHION MERCHANDISING HE DREAMED UP THE IDEA OF IMBUING EXPRESS WITH PARISIAN CACHET PIPING IN EDITH PIAF MUSIC AND DECORATING THE WALLS WITH PHOTOGRAPHS OF FRENCH STREET SCENES MANY WOMEN STILL BELIEVE EXPRESS IS BASED IN PARIS EVEN AS DIVISION PRESIDENT HE WORKED ON THE SELLING FLOOR ONE DAY A WEEK AFTER OBSERVING THAT MEN REPEATEDLY ASKED TO BE FITTED WITH LARGESIZE EXPRESS SWEATERS HE HELPED PERSUADE LIMITED TO LAUNCH ITS STRUCTURE MENSWEAR STORES A 330 MILLION BUSINESS AFTER JUST TWO YEARS WHEN MR WEISS WAS WORKING ON LIMITED TOO HE TOLD ITS MANAGERS HE EXPECTED RESULTS IN THREE MONTHS AND PROMPTLY ON SCHEDULE SALES BEGAN TO IMPROVE AFTER POSTING AN ESTIMATED 1 MILLION IN OPERATING LOSSES LAST YEAR ANALYSTS EXPECT LIMITED TOO TO BREAK EVEN THIS YEAR WITH SALES UP 25 TO ABOUT 140 MILLION BUT WITHIN THE COMPANY MR WEISS IS PERHAPS BEST KNOWN FOR HIS CALENDAR LIMITED ALWAYS TESTMARKETS GOODS BEFORE THEY ARE MASS PRODUCED AND AT EXPRESS THE CALENDAR HAS HELPED ELEVATE TESTING ALMOST TO A SCIENCE THROUGH TRIAL AND ERROR EXPRESS HAS DEVELOPED A WAY TO PINPOINT THE DAYS OF THE YEAR AND THE STORES FOR TESTMARKETING A GIVEN GARMENT TO YIELD RESULTS THAT CAN BE APPLIED THROUGHOUT THE CHAIN FOR EACH ITEM THE CALENDAR ALSO MARKS OPTIMUM DATES FOR ORDERING FABRIC BEGINNING PRODUCTION AND STARTING MARKDOWNS MICHAEL'S CALENDAR NOT ONLY ADDRESSES THE CURRENT SEASON BUT THE SHORTTERM AND LONGTERM STRATEGIES OF THE BUSINESS SAYS PAMELA MCCONATHY 37 A WEISS PROTEGE AND HIS SUCCESSOR AS EXPRESS PRESIDENT SHE SAYS IT ENABLES EXPRESS TO QUICKLY TURN A MISTAKE AROUND TO A POSITIVE IT HELPS US TURN LEMONS INTO LEMONADE AS MR WEISS SETS OUT TO REPAIR LIMITED STORES HE MUST AVOID STEALING CUSTOMERS FROM OTHER DIVISIONS NOTES MR IKENSON THE ANALYST THE BIG CHALLENGE IS HOW TO DIFFERENTIATE LIMITED STORES FROM EXPRESS TO AVOID FURTHER CANNIBALIZATION THREE EXPRESS EXECUTIVES WERE RECENTLY TRANSFERRED TO LIMITED STORES WHERE THEY WILL INTRODUCE THE WEISS CALENDAR BUT MR WEISS ISN'T READY TO FORECAST A TARGET DATE FOR A TURNAROUND HE SAYS HE'S PLEASED WITH THE CHAIN'S MORE SOPHISTICATED FALL STYLES AND PROMISES THAT SOONER RATHER THAN LATER LIMITED STORES WILL BEGIN ITS FIRST AD CAMPAIGN AND MR WEISS CONTINUES TO TINKER WITH EXPRESS TRUE TO HIS INSTINCTS HE IS HELPING TO DEVELOP COMPUTER SYSTEMS USING ARTIFICIAL INTELLIGENCE AND LOGIC TO PREDICT FASHION TRENDS IF THE PROJECT PANS OUT IT WILL BE TESTED FIRST AT EXPRESS 9308090037 930809 REVIEW & OUTLOOK EDITORIAL NOW ACCOUNTABILITY CONGRATULATIONS ARE IN ORDER TO PRESIDENT CLINTON AND THE DEMOCRATIC CONGRESS FOR PASSING THEIR HISTORIC TAX INCREASE LAST WEEK OR SHOULD WE SAY CONDOLENCES WE WILL SOON FIND OUT WHICH IS APPROPRIATE BECAUSE IF THERE IS ANY SILVER LINING TO THIS BUDGET FIASCO IT IS THAT ACCOUNTABILITY HAS FINALLY ARRIVED IN WASHINGTON YOU MIGHT EVEN SAY THERE'S EXQUISITE JUSTICE IN THE SINGLEVOTE DOWNTOTHEWIRE VICTORY IN THE HOUSE FOLLOWED BY ANOTHER PHOTO FINISH IN THE SENATE THESE ONEMEMBER MARGINS MEAN THAT EVERY DEMOCRAT EFFECTIVELY CAST THE DECIDING VOTE MANY VOTERS HAVE BEEN SAYING FOR YEARS THAT CONGRESS IS A MESS BUT THEIR OWN REPRESENTATIVE IS SWELL THEY'LL NOW KNOW THAT THEIR OWN REPRESENTATIVE COULD HAVE STOPPED THE TAX INCREASE AND WITHOUT ANY REPUBLICAN PRESIDENT OR EVEN ANY REPUBLICAN MEMBERS TO BLAME EVERY DEMOCRAT IN CONGRESS IS NOW RESPONSIBLE FOR WHAT HAPPENS NEXT IN THE REAL ECONOMY GOODBYE GRIDLOCK HELLO ACCOUNTABILITY OF COURSE IF THE CLINTON BOOM MATERIALIZES AS ADVERTISED THEY ALL HAVE NOTHING TO WORRY ABOUT BUT LAST WEEK'S FOLLIES SUGGEST THAT THERE ARE GRAVE DOUBTS EVEN AMONG THE DEMOCRATIC SHEEP IN THE SUBLIME CATEGORY THERE WAS MINNESOTA'S TIM PENNY AN AUTHENTIC DEFICIT HAWK WHO CAST A DISGUSTED VOTE IN FAVOR AND PROMPTLY ANNOUNCED HIS RETIREMENT SEE BELOW AS FOR THE RIDICULOUS CALIFORNIA'S MARTY MARTINEZ CAST A NO VOTE AND THEN WALKED OUT OF THE CAPITOL FORCING HOUSE LEADERS TO CHASE AND DRAG HIM BACK TO CHANGE HIS VOTE TO AYE MR MARTINEZ USUALLY A RANKANDFILE STALWART TELLS US HE FIRST VOTED NO TO REGISTER MY DISSATISFACTION AT THE GASOLINE TAX AND INCOMETAX RETROACTIVITY AND TO GET THE ATTENTION OF DEMOCRATIC LEADERS AT WHICH HE APPARENTLY SUCCEEDED WE HOPE VOTERS WERE PAYING ATTENTION TOO THE OSCAR FOR ANGST HOWEVER GOES TO REPRESENTATIVE MARJORIE MARGOLIESMEZVINSKY OF SUBURBAN PHILADELPHIA THE FRESHMAN DEMOCRAT HAD WON HER SEAT IN A MAJORITY REPUBLICAN DISTRICT BY CALLING HER OPPONENT A TAXANDRUN POLITICIAN AND VOWING TO HOLD THE LINE ON TAXES HERSELF ONLY THE DAY BEFORE THE HOUSE VOTE SHE HAD TOLD THE PHILADELPHIA INQUIRER SHE WAS CERTAIN TO VOTE NO BECAUSE THE TAX BILL WAS JUST PUTTING SANDBAGS ON THE RIVER SHE SAID SHE WASN'T TRYING TO BE INTRANSIGENT BUT I'M CERTAINLY HERE TO REPRESENT THE PEOPLE WHO SENT ME HERE IN THE EVENT SHE CHOSE TO REPRESENT THE DEMOCRATIC LEADERS WHO GAVE HER A COVETED SEAT ON THE ENERGY AND COMMERCE COMMITTEE HOLDING BACK HER VOTE UNTIL AFTER THE VOTING PERIOD WAS ACTUALLY OVER THEN SHE WALKED INTO THE WELL IN THE TOW OF DEMOCRATIC LEADERS AND CAST THE 218TH VOTE AYE AS AS REPUBLICANS CHANTED GOODBYE MARJORIE HER YES VOTE THEN ALLOWED FIVETERM MEMBER RAY THORNTON OF BILL CLINTON'S LITTLE ROCK WHO WAS ALSO HELD IN RESERVE TO SLIDE OFF THE HOOK AND VOTE NO APPARENTLY DEMOCRATIC LEADERS EMPLOY A SENIORITY SYSTEM IN DETERMINING WHO GETS TO COMMIT POLITICAL SUICIDE OVER IN THE SENATE THE ROLE OF HAMLET WAS PLAYED BY NEBRASKA'S BOB KERREY WHO HELD OUT FOR A 90MINUTE POWWOW WITH THE PRESIDENT HIMSELF IN RETURN FOR HIS AGONIZED ASSENT MR KERREY APPARENTLY WON A SUMMIT IN THE FALL TO CUT SPENDING IF YOU BELIEVE IN MIRACLES MEANWHILE AN EARLIER FENCESITTER ARIZONA'S DENNIS DECONCINI WAS GREETED ON THE DAY OF THE SENATE VOTE WITH AN ARIZONA REPUBLIC HEADLINE VOTE COULD PUT NAIL IN DC CAREER HE IS TRAILING HIS PROSPECTIVE BUT FORMALLY UNANNOUNCED OPPONENT BY 20 POINTS IN THE POLLS SO WE HOPE HE HAS ALSO WON A PROMISE FROM MR CLINTON OF A JUDGESHIP OR PERHAPS AN AMBASSADORSHIP IN ROME AFTER 1994 NOW THAT WE THINK ABOUT IT MAYBE THIS HELPS EXPLAIN WHY MR CLINTON HAS BEEN SO SLOW FILLING AMBASSADORSHIPS AND JUDGESHIPS THIS YEAR HE'S GOING TO NEED A LOT OF THEM LATER OF COURSE THE CLINTON BOOM COULD STILL SAVE THE DAY WE'VE SAID ALL ALONG THAT WHILE THE CLINTON BUDGET DEAL RESEMBLES THE GEORGE BUSH BUDGET DEAL THE ECONOMY ISN'T NEARLY AS WEAK NOW AS IT WAS IN 1990 REAL ESTATE MARKETS HAVE STABILIZED OR RISEN IN MOST OF THE COUNTRY CORPORATE AND HOUSEHOLD BALANCE SHEETS HAVE IMPROVED AND BANKS HAVE BEGUN TO LEND ONCE AGAIN THE ENORMOUS PRODUCTIVITY GAINS IN RECENT YEARS HAVE HELPED CORPORATE BOTTOM LINES IF NOT JOB CREATION AND THE REPUBLICAN FEDERAL RESERVE HAS WARNED IT WON'T STAND FOR A REPEAT OF 1970SSTYLE INFLATION SO MAYBE LOW INTEREST RATES AND THE NATURAL MOMENTUM OF THE ECONOMY WILL OFFSET THE DISINCENTIVES AND RETROACTIVE TAXES THAT THE DEMOCRATS HAVE JUST INSTALLED AND MAYBE SMALL BUSINESSES WILL IGNORE THEIR NEW 44 TOP MARGINAL TAX RATE PLUS THE LEVIES TO COME TO PAY FOR UNIVERSAL HEALTH CARE AND START HIRING WORKERS AGAIN IF IT DOESN'T HAPPEN THERE'LL BE NO DOUBT ABOUT WHERE THE RESPONSIBILITY LIES 9308090036 930809 ECONOMY FARM CREDIT SYSTEM PLANS RESTRUCTURING OF LOANS IN WAKE OF MIDWEST FLOODING BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL ACTING IN THE WAKE OF THE RECORD RAINS IN THE MIDWEST THE FARM CREDIT SYSTEM IS PLANNING ITS BROADEST LOANRESTRUCTURING CAMPAIGN SINCE THE MID1980S DEBT CRISIS THE EXTENT OF THE CROP AND PROPERTY DAMAGE WON'T BE CLEAR FOR MONTHS BUT THE FEDERALLY CHARTERED FARMEROWNED SYSTEM ALREADY EXPECTS TO DEFER THE DEBT PAYMENTS OF THOUSANDS OF BORROWERS MOST COMMERCIAL FARM BANKS HAVE YET TO ANNOUNCE ANY DETAILED DEBT RELIEF PLAN BUT FARM CREDIT IS MOVING QUICKLY BECAUSE IT HAS RECOVERED FROM ITS MULTIBILLIONDOLLAR LOSSES OF A DECADE AGO AND BELIEVES IT CAN WEATHER AN APPROACHING STORM OF SOUR LOANS INDEED THE SYSTEM IS EXPECTED TO REPORT TOMORROW HIGHER SECONDQUARTER EARNINGS PROFITS HAVE BEEN CLIMBING SO STRONGLY FOR THE PAST TWO YEARS THAT SOME OF THE SYSTEM'S REGIONAL BANKS ARE REPAYING THE FEDERAL GOVERNMENT AHEAD OF SCHEDULE FOR ITS 126 BILLION BAILOUT IN 1987 SOME ANALYSTS SAY THAT FARM CREDIT IS BURDENED BY UNCOMFORTABLY HIGH OPERATING COSTS DESPITE MERGERS THAT ARE REDUCING THE NUMBER OF REGIONAL BANKS IN THE SYSTEM TO 11 FROM 37 AND ROUGHLY 27 BILLION OF LOANS IN ITS 523 BILLION LOAN PORTFOLIO ARE NONPERFORMING BUT FALLING INTEREST RATES AND THE GOVERNMENT'S IMPLIED BACKING HAVE CUT THE SYSTEM'S COST OF RAISING FUNDS AS A RESULT FARM CREDIT IS SELLING BONDS AND NOTES AT NEARLY THE SAME YIELDS AS COMPARABLE TREASURY SECURITIES AND THE SYSTEM'S SENIOR LONGTERM DEBT HOLDS A TRIPLEA RATING FROM MOODY'S INVESTORS SERVICE INC THE AGENCY'S HIGHEST GRADE NOWADAYS WE ARE MUCH BETTER ABLE TO WITHSTAND THIS TYPE OF ADVERSE SITUATION SAID JAMES A BRICKLEY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE FEDERAL FARM CREDIT BANKS FUNDING CORP WHICH SELLS SECURITIES ON BEHALF OF THE NATIONWIDE SYSTEM OF BANKS FARMERS WHO GET ROUGHLY ONEFOURTH OF THEIR CREDIT FROM THE SYSTEM ARE ALSO MUCH STRONGER FINANCIALLY THAN THEY WERE JUST A FEW YEARS AGO AS A RESULT FARM CREDIT WON'T HAVE TO BE NEARLY AS GENEROUS AS IT WAS THE MID1980S WHEN IT FORGAVE CHUNKS OF DEBT CUT INTEREST RATES AND POSTPONED PAYMENTS FOR SEVERAL YEARS THIS TIME THE SYSTEM'S MIDWEST BANKS PLAN MOSTLY TO DEFER THE PAYMENTS OF ELIGIBLE FARMERS FOR ONE YEAR THE RAIN CLOUDS MIGHT EVEN HAVE A SILVER LINING FOR THE REJUVENATED SYSTEM FOR A DECADE FARM CREDIT HAS LOST MARKET SHARE TO RURAL BANKS WHICH HAVE ALSO BEEN RIDING A PROFIT BOOM BUT THE TRADE TERRITORIES OF MOST COMMERCIAL BANKS ARE SO MUCH SMALLER THAT SOME INSTITUTIONS IN RAINY POCKETS WILL BE HARD PRESSED TO HELP ALL OF THEIR AILING BORROWERS SEVERAL FARM BANK EXECUTIVES IN IOWA AND MINNESOTA FIGURE THAT THE EXCESSIVE RAIN HAS PUT 10 OR MORE OF THEIR FARMERS IN FINANCIAL TROUBLE THERE WILL BE GUYS THAT WE SIMPLY CAN'T HELP SAID JAY FRANZ SENIOR VICE PRESIDENT OF UNITED PRAIRIE BANK IN MOUNTAIN LAKE MINN WHERE CORN FARMERS EXPECT TO HARVEST 65 OF A NORMAL CROP WE CANNOT TAKE THIS TYPE OF HIT AS WELL AS FARM CREDIT THE STATE WITH PROBABLY THE MOST CROP DAMAGE IOWA IS IN THE TERRITORY OF THE FARM CREDIT BANK OF OMAHA AMONG OTHER THINGS THE OMAHA DISTRICT IS OFFERING TO DEFER ONE ANNUAL PAYMENT ON REALESTATE LOANS FOR FARMERS IN COUNTIES DECLARED DISASTER AREAS ALL OF IOWA QUALIFIES WHICH REPRESENTS ABOUT HALF OF THE OMAHA DISTRICT'S FOURSTATE BUSINESS IT ISN'T CLEAR HOWEVER HOW MANY FARMERS WILL APPLY A MERGER PACT ANNOUNCED BY THE OMAHA BANK LAST WEDNESDAY WOULD HELP REDUCE ITS VULNERABILITY TO SUCH A NATURAL CALAMITY IN THE FUTURE THE OMAHA BANK AND FARM CREDIT BANK OF SPOKANE WASH ARE SEEKING REGULATORY APPROVAL TO COMBINE THEIR DISTRICTS ON MARCH 31 1994 WHILE THE OMAHA BANK'S CUSTOMERS ARE MOSTLY CORN SOYBEAN WHEAT AND LIVESTOCK PRODUCERS THE SPOKANE BANK LENDS TO FISHING TIMBER AND PRODUCE INTERESTS IN WASHINGTON OREGON MONTANA IDAHO AND ALASKA MANY OF THE FARM CREDIT BORROWERS WHO FACE THE BIGGEST LOSSES ARE CUSTOMERS OF AGRIBANK IN ST PAUL MINN OFFICIALS THERE FIGURE THAT ROUGHLY 5000 BORROWERS IN THE DISTRICT FACE RAINSTUNTED CROPS AND FLOOD DAMAGE WHICH IS ROUGHLY 4 OF THE SEVENSTATE CUSTOMER BASE AGRIBANK THE SYSTEM'S BIGGEST REGIONAL BANK WAS CREATED IN MAY 1992 FROM THE MERGER OF DISTRICTS BASED IN ST PAUL AND ST LOUIS THE MOVE WAS DESIGNED IN PART TO LOWER LOAN RISK THROUGH GEOGRAPHIC DIVERSITY BUT THE MERGER LANDED MUCH OF THE UPPER HALF OF THE MISSISSIPPI RIVER WHICH IS THE PART THAT HAS BEEN FLOODING INTO AGRIBANK'S TERRITORY AGRIBANK IS CALCULATING THAT ROUGHLY 1500 OF ITS BORROWERS ALONG THE RIVER AND ITS TRIBUTARIES HAVE HAD CROPS WASHED OUT OR SUFFERED PROPERTY DAMAGE IN ADDITION TO FIGURING HOW MANY LOANS TO RESTRUCTURE AGRIBANK OFFICIALS ARE FACING THE QUESTION OF WHETHER TO CURTAIL NEW LOANS TO FARMERS IN FLOOD PLAINS IT ISN'T CLEAR HOW MANY OF THE AGRICULTURAL LEVEES WILL BE REPAIRED IN TIME FOR SPRING FLOODS AND THE NEXT PLANTING SEASON MANY OF THESE LEVEES DON'T QUALIFY FOR FEDERAL REBUILDING FUNDS AND SOME OF THE DRAINAGE DISTRICTS THAT DO QUALIFY PROBABLY CAN'T AFFORD THEIR 20 SHARE OF THE REBUILDING BILL WHICH IN MANY CASES WILL COST ROUGHLY 1 MILLION A MILE SOME FARMERS WILL WANT TO PLANT NEXT YEAR WITHOUT THE LEVEES SAID CT FREDRICKSON AGRIBANK CHIEF EXECUTIVE OFFICER BOTTOM LAND IS VERY FERTILE BUT WE HAVE TO BE COGNIZANT OF OUR RESPONSIBILITIES SLOW LEVEE REPAIRS WOULD ALSO PINCH THE BORROWING POWER OF NEARBY FARMERS LAND IS THE FARMER'S BIGGEST SOURCE OF COLLATERAL AND THE VALUE OF LOWLYING LAND IS OFTEN LINKED TO THE SURROUNDING LEVEES THE PROBLEM FOR FARMERS WHO HAVEN'T SUFFERED FLOOD DAMAGE IS THAT THE RAINY SEASON HAS SLOWED CROP GROWTH MANY FIELDS ARE NOW RUNNING OUT OF TIME TO MATURE BEFORE OCTOBER FROSTS END THE GROWING SEASON AGRIBANK FIGURES THERE ARE ROUGHLY 20000 FARM CREDIT BORROWERS IN THE HARDESTHIT SECTIONS OF MINNESOTA WISCONSIN AND ILLINOIS UNDER A WORSTCASE SCENARIO AGRIBANK FIGURES ABOUT ONEFIFTH OF THEM WILL BE FINANCIALLY STRESSED THIS YEAR THE COST OF RESTRUCTURING LOANS WILL TAKE SOME STEAM OUT OF THE EARNINGS OF AGRIBANK BECAUSE OF THE RAIN BANK OFFICIALS HAVE POSTPONED A PLAN TO SHRINK AGRIBANK'S LOAN LOSS ALLOWANCE BY 30 MILLION THIS YEAR THE PLAN WOULD HAVE INFLATED NET INCOME BANK OFFICIALS ALSO EXPECT A WEATHERRELATED DROP IN LOAN QUALITY TO DAMPEN EARNINGS GROWTH NEXT YEAR LUCKILY FOR AGRIBANK THE RAINS MATERIALIZED JUST AS THE LAST RESTRUCTURING WAVE WAS FADING ITS PREDECESSOR BANKS REWORKED THE DEBTS OF ABOUT 15000 FARMERS IN THE MID1980S MORE THAN HALF OF THOSE DEBTS HAVE BEEN LIQUIDATED OR PAID OFF AND MOST OF THE REST HAVE REVERTED TO A NORMAL PAYMENT PLAN ABOUT 500 FARMERS ARE SLATED TO BEGIN MAKING HIGHER PAYMENTS THIS YEAR FOR THEIR POSTPONED OBLIGATIONS 9308090034 930809 WORLD MARKETS SOME EUROPEAN BOURSES RALLY TO NEW HIGHS ON RESURGENT EXPECTATIONS FOR BROAD RATE CUTS A WALL STREET JOURNAL NEWS ROUNDUP LONDON SHARES ROSE SHARPLY FRIDAY TO CLOSE AT A RECORD HIGH AS INVESTORS CONTINUED TO PIN THEIR HOPES ON LOWER EUROPEAN INTEREST RATES TO SPUR ECONOMIC REBOUNDS THE RATE OUTLOOK WAS INFECTIOUS AS PARIS STOCKS SOARED 16 TO A RECORD THAT HAD STOOD FOR MORE THAN THREE YEARS FOLLOWING A FRENCH SIGNAL FOR LOWER RATES AND STOCKHOLM EQUITIES NOTCHED YET ANOTHER 1993 HIGH ON RECORD VOLUME FRANKFURT STOCKS TOO CONTINUED THEIR UPWARD MARCH THOUGH PROFITTAKING AHEAD OF THE WEEKEND CAUSED PRICES TO RETREAT FROM HIGHS IN THE SESSION'S FINAL HOUR TOKYO EQUITIES SOFTENED FRIDAY AS A LACK OF INCENTIVES LEFT DEALINGS STULTIFYINGLY CALM WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10956 UP 002 REFLECTING INCREASES IN MARKETS IN EUROPE AND A DROP IN ASIAN AND PACIFIC MARKETS WATER UTILITY STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10986 UP 209 OR 194 WITH EAUX OF FRANCE POSTING A 367 GAIN IN ITS LOCAL CURRENCY PRECIOUS METALS STOCKS TRAILED AT 13756 DOWN 208 OR 149 WITH HOMESTAKE GOLD OF AUSTRALIA SLIDING 114 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SWELLED 264 POINTS OR 09 TO A RECORD 29698 THE FT 30STOCK INDEX RALLIED 246 POINTS OR 11 TO 23610 VOLUME WAS 6813 MILLION SHARES COMPARED WITH 6164 MILLION SHARES A DAY EARLIER LONDON'S RENEWED OPTIMISM STEMMED FROM A CONSENSUS THAT LENDING RATES IN EUROPE WERE POISED TO DROP SPEEDING BRITAIN'S RECOVERY AND STIMULATING OTHER RECESSIONARY ECONOMIES THE UPBEAT MOOD RESULTED FROM THE EFFECTIVE COLLAPSE A WEEK EARLIER OF THE EUROPEAN MONETARY SYSTEM'S EXCHANGE RATE MECHANISM IN WHICH CURRENCIES TRADE WITHIN PROSCRIBED RANGES THE ERM LOOSENING WAS VIEWED AS FREEING EUROPEAN COUNTRIES TO EASE MONETARY POLICY WHICH WOULD STIMULATE ECONOMIES AND BENEFIT CORPORATE EARNINGS WITH LOWER CONSUMER BORROWING COSTS ALSO HELPING TO SPUR DEMAND LOWER RATES ALSO WOULD MAKE EQUITIES MORE ATTRACTIVE COMPARED WITH FIXEDINCOME INVESTMENTS THOUGH EUROPEAN BOURSES LAST WEEK PAUSED WHEN MAJOR RATE CUTS HADN'T COME QUICKLY AS EXPECTED FRIDAY'S RESURGENCE CAME ON EXPECTATIONS THAT THE REDUCTIONS MUST CERTAINLY COME IN BRITAIN INVESTORS' CRYSTAL BALL SHOWS THE BASE LENDING RATE FALLING SIGNIFICANTLY BEFORE THE NOV 30 PRESENTATION OF THE GOVERNMENT'S AUTUMN BUDGET IN PARIS THE CAC 40 INDEX RALLIED 3453 POINTS TO 214983 TOPPING THE PREVIOUS RECORD OF 212932 SET ON APRIL 20 1990 THE JUMP WAS PROMPTED BY THE FRENCH CENTRAL BANK'S ANNOUNCEMENT THAT IT WOULD RESUME ITS REGULAR 5TO10DAY SECURITIES REPURCHASE OPERATIONS PROVIDING FUNDS AT 10 THIS REPO WINDOW WHICH PREVIOUSLY OFFERED FUNDS AT 775 HAD BEEN SLAMMED SHUT TWO WEEKS EARLIER BY THE CENTRAL BANK IN A BID TO QUELL SPECULATION AGAINST THE FRENCH FRANC THOUGH THE CENTRAL BANK HASN'T RELAXED INTEREST RATES SINCE THE ERM CRISIS WAS AVERTED WITH A DE FACTO FLOAT OF THE FRANC AND OTHER EUROPEAN CURRENCIES INVESTORS VIEWED THE REPO MOVE AS A SIGNAL OF A KEY RATE CUT HEAVY FOREIGN BUYING CONTRIBUTED TO THE RALLY IN FRANKFURT THE DAX 30STOCK INDEX ROSE 868 POINTS TO 186938 MAKING ITS GAIN FOR THE WEEK 6615 POINTS OR 37 PARTICIPANTS SHOWED SOME UNCERTAINTY ABOUT STRATEGY FOR THIS WEEK FOLLOWING THE RECENT RALLY THE MARKET WAS CONSIDERED OVERBOUGHT BUT FEW INVESTORS BET ON A DECLINE IN PRICES AND MANY ADJUSTED POSITIONS IN ANTICIPATION OF A FURTHER RISE TODAY ATTENTION CONTINUED TO FOCUS ON FINANCIAL SHARES WHICH GAINED WHILE STOCKS THAT RESPOND TO ECONOMIC CYCLES SUCH AS MACHINERY METAL AND ENGINEERING ISSUES WERE SET BACK STOCKHOLM PRICES CLIMBED ON RECORD TURNOVER PASSING A LEVEL SET NOV 20 1992 WHEN THE FLOAT OF THE SWEDISH KRONA PROMPTED A STOCKMARKET SURGE THE BANKING SECTOR RALLIED 4 AND THE INSURANCE SECTOR 42 IGNITED BY LOWER RATES FEWER REAL ESTATE FAILURES AND SOARING VALUES ON EQUITY INVESTMENTS DEMAND ALSO WAS HEAVY FOR PHARMACEUTICAL TELECOMMUNICATIONS AND FINANCIAL STOCKS FRIDAY'S SURGE PUSHED THE AFFAERSVAERLDEN GENERAL INDEX'S GAIN FOR THIS YEAR TO 37 BRUSSELS SHARES SURGED 14 BRINGING THIS YEAR'S GAIN TO 19 FRIDAY'S JUMP WAS SUPPORTED BY NEW POSITIONS ON THE FIRST DAY OF A TRADING ACCOUNT AND FOREIGN BUYING WHILE BANKING SHARES ROSE ON ANTICIPATION OF CUTS IN INTEREST RATES IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 7191 POINTS THURSDAY GAVE UP 6770 TO 2035794 ON MONDAY THE NIKKEI ROSE 13951 POINTS TO CLOSE THE MORNING SESSION AT 2049745 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT AN ANEMIC 200 MILLION SHARES DOWN FROM 2387 MILLION SHARES A DAY EARLIER LOSERS OVERWHELMED GAINERS 611307 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DROPPED 982 POINTS THURSDAY DECLINED 723 TO 165459 THE NIKKEI OPENED AT ITS INTRADAY HIGH OF 2037974 AND HIT ITS LOW OF 2024482 ABOUT 20 MINUTES LATER OFF ALMOST 1 THEN RECOVERED GRADUALLY APART FROM A FLURRY OF ARBITRAGE SELLING AND PROFITTAKING AT THE OPENING SHARE PRICES FLUCTUATED IN A TINY RANGE THE EARLY WEAKNESS WAS ATTRIBUTED TO DISAPPOINTMENT ABOUT THE DELAY IN FORMING A NEW JAPANESE GOVERNMENT WHICH WAS SETTLED AFTER THE MARKET CLOSED FRIDAY INVESTORS ALSO WERE WARY OF THE RESURGENT YEN AND A HOPEDFOR JAPANESE INTEREST RATE CUT STILL HADN'T BEEN SERVED UP IN SYDNEY SHARES DROPPED AS GOLD ISSUES SLID BECAUSE OF A FALL IN THE PRICE OF GOLD TRADING WAS DOMINATED BY MINING AND GOLD STOCKS WHILE INDUSTRIAL ISSUES MANAGED TO END WITH ONLY SMALL LOSSES IN SINGAPORE EQUITIES STRENGTHENED AFTER A LATE BUYING IN INDEXLINKED STOCKS AWAKENED THE QUIET SESSION MARKET WATCHERS SUNDAY SAID THEY EXPECT SINGAPORE'S LATEST ECONOMIC GROWTH NUMBERS TO PROPEL SHARES ON TUESDAY WHEN THE MARKET REOPENS AFTER THE NATIONAL DAY HOLIDAY ON SUNDAY SINGAPORE REPORTED THAT THE ECONOMY GREW AT A BLISTERING 101 PACE IN THE SECOND QUARTER FROM A YEAR EARLIER AND THE GOVERNMENT RAISED ITS GROWTH FORECAST FOR THE FULL YEAR HONG KONG STOCKS HEADED UP TOWARD RECORD TERRITORY AS A BLUECHIP BUYING SPREE CONTINUED IN BRISK TRADING LEAVING THE BOURSE AT ITS HIGHEST LEVEL SINCE MAY 27 WITH A GAIN OF 72 FOR LAST WEEK AND 96 FOR THE PAST TWO WEEKS TAIPEI SHARES FELL AS PROFITTAKING MOSTLY BY SPECULATORS CUT INTO THE PREVIOUS DAY'S GAINS MANILA STOCKS SLID ON CONTINUED PROFITTAKING WITH LOSERS LED BY MINING ISSUES AS GOLD WAS OFF IN THE GLOBAL MARKET 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 9308090033 930809 MAGNETEK TO REPORT NET PLUNGED 67 IN FISCAL 4TH PERIOD AS DEMAND SHIFTED BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES MAGNETEK INC EXPECTS TO REPORT NET INCOME PLUNGED 67 IN THE FISCAL FOURTH QUARTER ENDED JUNE 30 DAVID P REILAND SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID IN AN INTERVIEW EARNINGS FELL TO 31 MILLION OR 12 CENTS A SHARE FROM 94 MILLION OR 38 CENTS A SHARE SALES ROSE 22 TO 418 MILLION FROM 343 MILLION THE CURRENT FIRST QUARTER PROBABLY WON'T SHOW MUCH IMPROVEMENT FROM THE FOURTH QUARTER JUST FINISHED MR REILAND SAID EARNINGS ARE LIKELY TO BE HALF OF WHERE THEY WERE A YEAR AGO IN THAT PERIOD ENDED SEPT 30 1992 THE COMPANY REPORTED NET INCOME OF 68 MILLION OR 28 CENTS A SHARE FULLYDILUTED EARNINGS WERE 26 CENTS A SHARE WE THINK BUSINESS IS GOING TO BE TOUGH AND WE'RE ACTING APPROPRIATELY TO CUT COSTS WHERE WE HAVE TO AND BEING SELECTIVE ON INVESTMENTS WE'RE MAKING SAID FRANK PERNA JR PRESIDENT AND CHIEF EXECUTIVE OFFICER POSITIVE EARNINGS COMPARISONS SHOULD RESUME IN THE SECOND HALF HE PREDICTED THE SHARP PROFIT DECLINES ARE MAINLY A RESULT OF THREE FACTORS AN UNEXPECTED SHIFT IN THE DEMAND MIX FOR ENERGYSAVING LIGHTING BALLASTS HIGHER COSTS COMBINED WITH LOWERTHANEXPECTED SALES RELATED TO SOME MILITARY CONTRACTS AND DEPRESSED GOVERNMENT SPENDING FOR CUSTOMIZED MOTORS SAID MR PERNA PROFIT HAS BEEN NEGATIVELY AFFECTED THE MOST BY THE UNEXPECTED SHIFT IN DEMAND FOR BALLASTS THAT POWER EIGHTFOOT FLUORESCENT TUBES AND INCREASED COMPETITION THAT HAS HURT COMPANY SALES OF BALLASTS FOR FOURFOOT TUBES WE HAD MATCHED OUR PRODUCTION AND PIPELINES TO MEET EXPECTED DEMAND FOR THE FOURFOOT PRODUCT WE HAD TO JERK THINGS AROUND TO MEET REQUIREMENTS FOR THE EIGHTFOOT PRODUCT MR PERNA SAID WE DID DELIVER THE PRODUCT AND GAINED MARKET SHARE BUT THE GYRATION HAD A 10 CENT TO 15 CENT NEGATIVE IMPACT ON EARNINGS MR PERNA SAID THE LONGER TUBES ARE COMMON IN MASS MERCHANDISE RETAIL STORES THE SHORTER TUBES ARE TYPICALLY USED IN OFFICE BUILDINGS THE DEMAND PATTERN FOR BALLASTS HAS BEEN DISTORTED IN RECENT MONTHS AS DISTRIBUTORS OVERSTOCKED PRODUCT FOR FEAR OF BEING UNABLE TO MEET THEIR CUSTOMERS' NEEDS NOW THAT SUPPLY IS MEETING DEMAND DISTRIBUTORS NO LONGER NEED TO CARRY BIG INVENTORIES MAGNETEK SAYS THERE IS STILL AN INVENTORY BULGE THAT MUST BE WORKED THROUGH BEFORE ORDER PATTERNS RETURN TO NORMAL MR PERNA SAID ANALYSTS ARE FORECASTING MAGNETEK WILL POST FISCAL YEAR 1994 PERSHARE NET INCOME BETWEEN 150 AND 2 THE TOP END APPEARS NOT TOO LIKELY BUT WE'RE COMFORTABLE WITHIN THAT RANGE MR REILAND SAID THE TOP END IS ACHIEVABLE DEPENDING ON WHAT HAPPENS IN THE ECONOMY BOTH IN THE US AND EUROPE MR PERNA SAID FOR FISCAL 1993 MAGNETEK EXPECTS TO REPORT A LOSS OF 217 MILLION OR 90 CENTS A SHARE AFTER 487 MILLION IN CHARGES RELATED TO CUMULATIVE ACCOUNTING CHANGES ON A FULLY DILUTED BASIS USED FOR ANALYSTS' COMPARISONS THE FIGURE IS EXPECTED TO BE 103 EXCLUDING THE ACCOUNTING CHARGES PROFIT WAS ABOUT 27 MILLION OR 109 A SHARE SALES GREW ABOUT 22 TO 15 BILLION FROM 123 BILLION FOR FISCAL 1992 THE COMPANY REPORTED NET OF 222 MILLION OR 92 CENTS A SHARE AFTER CHARGES FOR AN ACCOUNTING CHANGE AND EARLY DEBT RETIREMENT MAGNETEK SHARES CLOSED FRIDAY AT 17 UNCHANGED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE EARNINGS FORECAST CAME AT THE MARKET'S CLOSE 9308090032 930809 INDUSTRY FOCUS GENERICDRUG MAKERS PREPARE FOR THEIR NEXT BATTLE SCANDALTAINTED INDUSTRY FACES HEIGHTENED COMPETITION AND REGULATION BY JYOTI THOTTAM STAFF REPORTER OF THE WALL STREET JOURNAL HAVING DUSTED ITSELF OFF AFTER THE BRIBERY AND FRAUD SCANDALS OF THE LATE 1980S THE GENERICDRUG INDUSTRY IS PREPARING FOR A NEW BATTLE THE PUSH TO CUT HEALTHCARE COSTS AND THE PENDING EXPIRATION OF PATENTS FOR A SLEW OF DRUGS WILL EXPAND THE MARKET FOR GENERIC DRUGS BUT COMPANIES WON'T FIND THE GOING EASY MIDSIZE GENERICDRUG PRODUCERS IN PARTICULAR FIND THEMSELVES SQUEEZED AS LARGE PHARMACEUTICAL CONCERNS ENTER THE MARKET AND AS SOME SCANDALTAINTED COMPANIES REGROUP AND REENTER JOHN KLEIN PRESIDENT OF ZENITH LABORATORIES INC SAYS THERE IS A STRONG SENSE OF URGENCY PERVADING THE GENERICDRUG INDUSTRY WHICH HAD ABOUT 85 BILLION IN SALES LAST YEAR ACCORDING TO COUNTY NATWEST SECURITIES IN NEW YORK THE GOVERNMENT'S HEALTHCARE REFORM PACKAGE DUE IN SEPTEMBER IS LIKELY TO BOOST DEMAND FOR GENERIC DRUGS BY REQUIRING LARGE CUSTOMERS SUCH AS HEALTH MAINTENANCE ORGANIZATIONS TO CUT COSTS AND PATENTS ON SEVERAL BLOCKBUSTER DRUGS ARE EXPIRING IN THE NEXT FEW YEARS BUT THE INDUSTRY'S ENTHUSIASM HAS BEEN TEMPERED BY STRICTER REGULATION BY THE FOOD AND DRUG ADMINISTRATION AFTER DISSOLVING A HUGE BACKLOG OF APPLICATIONS THAT BUILT UP WHILE REGULATORS AND PROSECUTORS TRIED TO GAUGE THE DEPTH OF THE SCANDAL THE FDA IS SEEING A SLIGHT RISE IN APPLICATIONS I WILL ADMIT THAT OUR BACKLOGS HAVE RISEN SLIGHTLY RECENTLY SAYS ROGER WILLIAMS DIRECTOR OF THE AGENCY'S GENERICDRUG OFFICE TO HELP THE FDA KEEP UP HE SAYS GENERIC COMPANIES MAY BE REQUIRED TO PAY A FEE AS BRANDNAME OR INNOVATOR DRUG CONCERNS DO BUT AS MORE COMPANIES ENTER THE PROFIT MARGINS ENJOYED BY GENERICS WON'T LAST SAYS HEMANT SHAH AN INDUSTRY CONSULTANT IN WARREN NJ EARNINGS ARE GOING TO GO DOWN HE PREDICTS THE GENERICDRUG SCANDAL TOUCHED MUCH OF THE INDUSTRY AS THE FDA THE US ATTORNEY IN BALTIMORE AND THE JUSTICE DEPARTMENT INVESTIGATED CHARGES THAT COMPANIES HAD SUBMITTED IMPROPER APPLICATIONS AND IN SOME CASES BRIBED FDA OFFICIALS TO DATE 42 PEOPLE AND 10 COMPANIES HAVE PLEADED GUILTY TO OR BEEN CONVICTED OF FRAUD OR CORRUPTION CHARGES A FEW ARE TRYING TO REGROUP CIRCA PHARMACEUTICALS INC FORMERLY BOLAR PHARMACEUTICALS CO HAS HAD TO ELIMINATE ITS ENTIRE PRODUCT LINE SAYS ITS PRESIDENT MELVIN SHAROKY BECAUSE RESUBMITTING APPLICATIONS WOULD HAVE BEEN TOO COSTLY ALMOST ALL OUR RESOURCES OVER THE PAST TWO YEARS HAVE BEEN DEVOTED TO RESEARCH AND DEVELOPMENT HE SAID IN APRIL CIRCA RECEIVED FDA CLEARANCE TO SUBMIT NEW APPLICATIONS PAR PHARMACEUTICALS IS UNDER NEW MANAGEMENT NOW OWNED BY PHARMACEUTICAL RESOURCES INC UNLIKE CIRCA PAR CHOSE TO RESUBMIT APPLICATIONS FOR ITS ROUGHLY 100 PRODUCTS THAT WAS AN AGONIZING PROCESS SAYS ITS NEW CHAIRMAN KENNETH SAWYER PAR IS STILL WAITING FOR FDA CLEARANCE HE SAID FDA AND COMPANY OFFICIALS SEEM EAGER TO PUT THE SCANDAL BEHIND THEM BUT THE REPERCUSSIONS HAVE PERMANENTLY CHANGED THE INDUSTRY'S REGULATORY ENVIRONMENT GENERICDRUG MAKERS MUST SHOW THAT THEIR VERSIONS ARE EQUIVALENT TO THE BRANDNAME DRUGS AND REGULATIONS FOR THE DATA IN THESE STUDIES ARE NOW MUCH MORE RIGOROUS ONE OF THE BIGGEST CHANGES HAS BEEN A REQUIREMENT OF SPECIFIC PRODUCT MANUFACTURING INSPECTIONS EVERY TIME A COMPANY SEEKS APPROVAL FOR A DRUG THIS SLOWS DOWN THE PROCESS CONSIDERABLY SAYS JAY MOLISHEVER A SPOKESMAN FOR THE GENERIC PHARMACEUTICAL INDUSTRY ASSOCIATION THE FDA'S DR WILLIAMS ACKNOWLEDGES THAT PREAPPROVAL INSPECTIONS ARE TIMECONSUMING BUT IN THE FINAL ANALYSIS I THINK IT'S WORTH IT THE IMPACT IS APPARENT IN THE NUMBER OF FDA APPROVALS FOR NEW GENERIC DRUGS BEFORE THE SCANDAL THE AGENCY APPROVED ABOUT 40 TO 60 APPLICATIONS A MONTH AT THE HEIGHT OF THE INVESTIGATIONS APPROVALS SLOWED TO A TRICKLE FOR THE PAST TWO YEARS THE RATE HAS BEEN 20 TO 25 A MONTH THE SCANDAL HAD A CHILLING EFFECT ON FDA APPROVALS SAYS GARY JORDAN ACTING US ATTORNEY IN BALTIMORE WHO LED THE INVESTIGATIONS IN ADDITION TO THE HANDFUL OF COMPANIES THAT WERE CONVICTED OF CRIMES AND FOLDED HE SAYS MANY MORE EVENTUALLY CLOSED DOWN BECAUSE THEY DEPENDED ON NEW DRUG APPROVALS TO SURVIVE SINCE THEN THE TIGHTENING OF REGULATIONS HAS MADE ENTERING THE MARKET VERY DIFFICULT FOR SMALL COMPANIES THE REGULATORY SITUATION RIGHT NOW IS A HUGE BARRIER TO ENTRY SAYS GERALD PRICE EXECUTIVE VICE PRESIDENT OF BARR LABORATORIES INC WHICH RECENTLY RESOLVED A SUIT AGAINST THE FDA BUT IS STILL WAITING FINAL VALIDATION YOU JUST CAN'T THROW SOME MONEY TOGETHER AND BUILD A PLANT AND THINK THAT YOU'RE GOING TO GET DRUG APPROVALS SAYS CIRCA'S DR SHAROKY BUT TOUGHER REGULATIONS MAY ALSO KEEP OUT UNSCRUPULOUS COMPANIES I SEE THAT AS GOOD SAYS DAVID SAKS AN ANALYST AT GRUNTAL & CO IN NEW YORK IT ASSURES MORE STABILITY IN THE MARKETPLACE THIS HAS LEFT THE INDUSTRY MUCH LESS FRAGMENTED THAN IT WAS BEFORE THE SCANDAL WHAT WE HAVE NOW IS MORE OF AN OLIGOPOLY MR SHAH SAYS THE GENERIC COMPANIES LEFT STANDING ARE THE ONES THAT CAN AFFORD TO FOLLOW THE NEW RULES STAYING IN COMPLIANCE IS TREMENDOUSLY MORE EXPENSIVE THAN IT WAS FIVE YEARS AGO SAYS JEFFREY SMITH EXECUTIVE VICE PRESIDENT OF AL LABORATORIES INC BUT STRICT REGULATION IS NOT A MEANINGFUL BARRIER TO ENTRY FOR A WELLCAPITALIZED FIRM SAYS JACK LAMBERTON AN ANALYST AT COUNTY NATWEST BRANDNAME DRUG COMPANIES TOO ARE ENTERING THE GENERIC MARKETPLACE MANY INNOVATOR COMPANIES ARE SETTING UP GENERIC DIVISIONS ACQUIRING GENERICDRUG COMPANIES OR REACHING DISTRIBUTION AGREEMENTS WITH GENERIC COMPANIES MARION MERRELL DOW INC RECENTLY BOUGHT THE GENERICDRUG DIVISION OF RUGBYDARBY GROUP COS AND MERCK & CO FORMED ITS WEST POINT PHARMA UNIT TO MARKET GENERIC VERSIONS OF ITS DRUGS INNOVATOR COMPANIES CAN'T POSSIBLY AFFORD TO AVOID THE MONEY THAT'S THERE DR SHAROKY SAID THERE ARE PRESSURES FROM GOVERNMENT AND SOCIETY THAT ARE DEMANDING A CHANGE IN DRUG PRICING SAYS LAURENCE BRODY CHIEF OPERATING OFFICER OF IVAX CORP A HEALTH PRODUCTS COMPANY WITH A LARGE GENERIC DIVISION HOWEVER MR BRODY SAYS INNOVATORS SO FAR HAVEN'T BEEN VERY SUCCESSFUL BECAUSE THEY LACK EXPERIENCE IN MARKETING GENERIC DRUGS A MARKET DOMINATED BY FEWER LARGE DRUG COMPANIES COULD MEAN LESS PRICE COMPETITION AND THUS A SMALLER COST SAVINGS FOR CONSUMERS SAYS MR SAWYER PHARMACEUTICAL RESOURCES' CHAIRMAN BUT HE SAYS CONSUMERS ARE BETTER SERVED BY A STABLE GENERICDRUG MANUFACTURING MARKETPLACE ZENITH'S MR KLEIN SAYS INTENSE PRICE COMPETITION WILL CONTINUE AS LONG AS INDEPENDENT GENERIC COMPANIES ARE ABLE TO KEEP PRICES DOWN HE SAYS WE APPLY PRESSURE THE GOVERNMENT WILL APPLY PRESSURE AND THE PEOPLE WHO BUY PRESCRIPTION DRUGS ARE BECOMING FAR MORE COST CONSCIOUS 9308090031 930809 GLOBAL VIEW BOSNIA STRIPS BARE THE PEACEKEEPING' ILLUSION BY GEORGE MELLOAN BRUSSELS AS PRELUDE TO YET ANOTHER NATO WAR COUNCIL HERE TODAY THE EUROPEAN COMMUNITY'S BALKAN MEDIATOR LORD OWEN LAST WEEK CHOSE TO GO TO WAR INDIVIDUALLY BUT NOT AGAINST THE LANDGRABBING ETHNICCLEANSING BOSNIAN SERBS IN LORD OWEN'S VIEW THE US IS NOW THE VILLAIN FOR THREATENING AIR STRIKES AGAINST THE SERBS THIS SAID THE BRITISH PEER HAS COMPLICATED HIS DIPLOMATIC EFFORTS TO END THE FIGHTING IT COULD BE POINTED OUT THAT THE DIPLOMATIC PATH HE AND CYRUS VANCE TROD HAS NOW NARROWED TO A RABBIT RUN IT HAS LITTLE SPACE LEFT FOR MANEUVER OTHER THAN TO TRY AND PRESERVE A FEW SAFE HAVENS FOR WHAT REMAINS OF THE MAJORITY MUSLIM POPULATION OF BOSNIA SERB FORCES ALTHOUGH PAYING PIOUS LIP SERVICE TO UN PEACE EFFORTS YESTERDAY WERE POSITIONING THEIR GUNS ON THE HEIGHTS OVERLOOKING SARAJEVO WITH THE OBVIOUS GOAL OF BRINGING THE BOSNIAN GOVERNMENT TO ITS KNEES WHAT ACTUALLY CONCERNED LORD OWEN WAS THE POSSIBILITY THAT US THREATS WOULD EMBOLDEN BOSNIAN MUSLIM LEADER ALIJA IZETBEGOVIC TO HOLD OUT A LITTLE LONGER AGAINST TOTAL CAPITULATION IN HOPE OF US INTERVENTION IF THIS SEEMS TOO HARSH A JUDGMENT OF THE WOULDBE PEACEMAKERS IT CAN BE BALANCED BY SOME EQUAL SKEPTICISM TOWARD THE WOULDBE WARMAKERS BILL CLINTON AND SECRETARY OF STATE WARREN CHRISTOPHER HAVE ADOPTED A HAWKISH POSTURE ON BOSNIA BUT WITH VERY LITTLE INDICATION THAT THEY ARE PREPARED TO GO TO WAR THERE IF THAT IS THEIR INTENT IT SURELY HAS BEEN THE MOST CASUAL BUILDUP FOR A WAR IN AMERICAN HISTORY THE PRESIDENT OVER THE WEEKEND WAS BUSY PUSHING HIS TAX INCREASES THROUGH CONGRESS AND CLEARING A PATH FOR PEACENIK MORTON HALPERIN TO BE AN ASSISTANT SECRETARY OF DEFENSE SECRETARY CHRISTOPHER LAST WEEK WAS LABORING IN THE MIDEAST BRIAR PATCH AND THE CHAIRMAN OF THE JOINT CHIEFS WAS NEGOTIATING HIS POSTRETIREMENT SPEAKING FEES AND A BOOK CONTRACT IT'S NO WONDER THAT THE SERBS WERE CONFIDENT THEY COULD FINESSE WESTERN THREATS YET ONE MORE TIME BY SUGGESTING LATE LAST WEEK THAT UN PEACEKEEPERS TAKE OVER SOME STRATEGIC HEIGHTS AROUND SARAJEVO EVEN IF THAT SHOULD HAPPEN SERB ARTILLERY STILL WOULD HAVE COMMANDING POSITIONS NATO MINISTERS ARRIVING HERE WITH LITTLE CONFIDENCE IN US LEADERSHIP NO DOUBT WELCOMED THE SERB FIG LEAF UN TROOPS ON THE GROUND WILL BE HAPPY TOO IF NOTHING COMES OF THE BRUSSELS MEETING THEY FEAR BECOMING HOSTAGES IN ENEMY TERRITORY IF THE WEST MAKES A BELATED ATTEMPT TO REVERSE THE RESULTS OF THE SERBIAN CONQUEST WHATEVER HAPPENS NEXT IN BOSNIA IT IS HIGHLY UNLIKELY TO BRING MUCH GRATIFICATION TO ANYONE WHO FELT CONFIDENCE IN THE FUTURE OF UN PEACEKEEPING YET THE COST IN HUMAN LIFE AND SUFFERING OF THE BOSNIAN TRAGEDY WILL NOT BE WHOLLY IN VAIN IF IT BRINGS SOME SERIOUS THOUGHT ON WHAT THE UN IS CAPABLE OF DOING AND WHAT IT IS NOT CAPABLE OF DOING IT MAY BE THAT THE UN BUREAUCRACY IS SO RIDDEN BY FACTIONALISM MANAGERIAL INCOMPETENCE AND OUTRIGHT GRAFT THAT IT IS NO LONGER VERY GOOD AT ANY OF THE TASKS NATIONS HAVE ASSIGNED TO IT BUT WHATEVER ANYONE THINKS ABOUT ITS OVERALL PERFORMANCE IT SHOULD BE MANIFESTLY EVIDENT BY NOW THAT IT IS NOT A VERY SUCCESSFUL PEACEKEEPER INDEED A CASE CAN BE MADE THAT UN INTERVENTIONS IN WAR ZONES USUALLY HAVE DONE MORE HARM THAN GOOD BY ACCOMMODATING ETHNIC HATREDS AND PROLONGING THEIR CORROSIVE EFFECTS AS WITH ALL OTHER INSTITUTIONS BORN OUT OF THE ASHES OF WORLD WAR II WITH THE GOAL OF CREATING A MORE POLITICAL STABLE WORLD THE UN ITS METHODS AND ITS GOALS ARE CLEARLY IN NEED OF SERIOUS REEXAMINATION ITS WEAKNESSES WERE MANIFEST DURING THE COLD WAR NOW THAT A NEW AND UNCERTAIN ERA CONFRONTS THE WORLD ALL THE INSTITUTIONS THAT HAVE SURVIVED THE COLD WAR NOT JUST NATO AND THE EUROPEAN COMMUNITY DESERVE THOUGHTFUL CONSIDERATION OF THEIR USEFULNESS QUITE POSSIBLY UN PEACEKEEPING HAS BECOME MERELY A POLITICALLY CONVENIENT WAY OF TRYING TO BRUSH CONFLICTS UNDER A RUG RELIEVING FIRST WORLD POLITICIANS OF THE NEED TO ADDRESS THEM DIRECTLY CERTAINLY PEACEKEEPING HAS PRODUCED PRECIOUS LITTLE PEACE WHAT IT HAS PRODUCED IS AN INORDINATE NUMBER OF REFUGEES AND REFUGEE CAMPS SCATTERED AROUND THE WORLD ALL OF THEM PROVIDING A BURDEN OF EMBITTERED UNHEALTHY AND UNPRODUCTIVE POPULATIONS IN THE AREAS WHERE THEY EXIST IN BOSNIA PEACEKEEPING WAS NEVER PEACEKEEPING AT ALL BECAUSE THE BLUE HELMETS WERE NEVER AUTHORIZED TO USE THE FORCE NECESSARY FOR THAT PURPOSE EVEN IF THEY HAD BEEN THEY WERE NOT NUMEROUS ENOUGH OR WELLARMED ENOUGH ON THE GROUND TO MAKE IT STICK THEY SIMPLY BECAME A FORCE FOR HUMANITARIAN AID SOMEWHAT ASSUAGING THE EFFECTS OF A BRUTAL MILITARY ACTION BY THE SERBIAN AND LATER CROATIAN AGGRESSIONS MANY THOUSANDS OF FORMER YUGOSLAVS FLED TO BECOME REFUGEES IN TURKEY GERMANY SWEDEN AND OTHER SAFE HAVEN COUNTRIES THE WELCOME THEY RECEIVED IN THOSE COUNTRIES IS WEARING THIN HAVING GIVEN RISE IN THE EC IN PARTICULAR TO MORE RESTRICTIVE LEGISLATION APPLYING TO THE ADMISSION OF ANY KIND OF IMMIGRANT OTHER PEACEKEEPING VENTURES TELL A SIMILAR STORY THE ANGOLA WAR PERSISTS DESPITE UN EFFORTS AN AP DISPATCH REPORTED YESTERDAY THAT FACTIONS IN THE NEW CAMBODIAN GOVERNMENT ARE USING UN MONEY TO RECRUIT SOLDIERS WHICH IS NOT SURPRISING GIVEN THE FACT THAT A VERY EXPENSIVE UN PEACEKEEPING EFFORT HAS NOT BEEN ABLE TO PACIFY THE MURDEROUS KHMER ROUGE WHICH STILL HOPES TO SHOOT ITS WAY TO POWER IN SOMALIA PEACEKEEPING FORCES UNDER UN COMMAND LOOK INCREASINGLY VULNERABLE BECAUSE OF LIMITED RULES OF ENGAGEMENT FOUR AMERICAN SOLDIERS WERE KILLED IN AN AMBUSH YESTERDAY UN REFUGEE AND FOOD RELIEF OPERATIONS THROUGHOUT AFRICA ARE NOTORIOUS FOR THEFT OF SUPPLIES AND CORRUPT MANAGEMENT AND THEN FINALLY THERE ARE THE LONGEST RUNNING UN PEACEKEEPING OPERATIONS OF ALL THOSE IN PALESTINE DATING BACK TO 1948 THERE IS CERTAINLY LITTLE PEACE IN LEBANON ON THE WEST BANK OR IN THE GAZA STRIP WHERE UN REFUGEE CAMPS HAVE FOR DECADES BEEN BREEDING GROUNDS FOR HATRED AND TERRORISM ASIDE FROM THE HUMANITARIAN PROBLEMS HAVING TO DO WITH THE WORLD'S HUGE REFUGEE POPULATION THERE IS THE POINT THAT UN PEACEKEEPING AND RELIEF OPERATIONS HAVE BECOME VERY EXPENSIVE WELL OVER BUDGET THIS YEAR THE BOSNIA FAILURE WILL RAISE QUESTIONS IN THE MINDS OF MANY NATIONAL POLITICIANS ABOUT WHETHER THE CONTRIBUTIONS IN MEN ARMS AND MONEY THEY HAVE BEEN MAKING TO THE UN HAVE BEEN JUSTIFIED BY RESULTS THAT IS EXACTLY THE QUESTION THEY SHOULD BE ASKING THE ENTIRE ISSUE DESERVES A SEARCHING REVIEW 9308090030 930809 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR AS AN INFLATION SCARE EARLIER IN THE YEAR FADES FROM MEMORY IT IS BECOMING CLEAR THE ECONOMY JUST DOESN'T HAVE THE OOMPH TO SUPPORT SIGNIFICANT PRICE INCREASES THE CONSUMER PRICE INDEX WHICH BARELY BUDGED IN MAY AND JUNE PROBABLY POSTED ONLY A MINIMAL INCREASE IN JULY SAID JOHN ALBERTINE WHO HEADS AN ECONOMIC FORECASTING FIRM IN WASHINGTON A 02 INCREASE IN THE JULY INDEX FORECAST BY MR ALBERTINE WOULD PUT THE CPI ON COURSE FOR A 25 ANNUAL INCREASE EVEN SMALLER THAN LAST YEAR'S SCANT 29 RISE WITH VIRTUALLY NO ECONOMIC ACTIVITY AND SUCH GRUDGING GROWTH NO ONE IS IN THE POSITION TO RAISE PRICES AND HAVE THOSE INCREASES STICK MR ALBERTINE SAID DECLINES IN PRICES FOR SOME CONSUMER GOODS IN JULY PROBABLY WERE OFFSET BY INCREASES IN COSTS FOR SERVICES ESPECIALLY HEALTH CARE HE SAID THE LOWINFLATION ENVIRONMENT REDUCES PRESSURE ON THE FED TO TIGHTEN CREDIT CONDITIONS HOWEVER MR ALBERTINE SAID THE FED WHICH HAS EXPRESSED A BIAS TOWARD TIGHTENING CREDIT CAN'T HOLD OFF RAISING SHORTTERM INTEREST RATES FOREVER AND PROBABLY WILL DO SO BY THE END OF THE YEAR 9308090029 930809 KERMIT'S KEEPERS JIM HENSON IS GONE BUT MUPPETS THRIVE UNDER HIS CHILDREN THEY EXPAND INTO VIDEOS RECORDS MAYBE MTV SOME MISS CREATIVE SPARK IS FIRM GROWING TOO FAST BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT HAPPENS ALL THE TIME AN ENTREPRENEUR DIES AND LEAVES THE COMPANY TO THE CHILDREN THEY PROMPTLY SELL OUT OR RUN THE FIRM INTO THE GROUND NOT SO WITH JIM HENSON PRODUCTIONS INC WHOSE FOUNDER THE CREATOR OF THE LOVABLE MUPPETS OF SESAME STREET DIED UNEXPECTEDLY THREE YEARS AGO THE COMPANY MR HENSON LEFT TO HIS FIVE CHILDREN IS THRIVING FOUR TELEVISION SHOWS AND FOUR MOVIES ARE IN THE PIPELINE THE MOST EVER A NEW VIDEO DIVISION AND RECORD LABEL ARE PUMPING OUT RELEASES AND MUPPET PRESS HAS A RECORD NUMBER OF NEW BOOKS DUE THIS FALL THE COMPANY ALSO IS EXPLORING NEW TECHNOLOGIES LIKE INTERACTIVE MEDIA AT THE MUPPET WORKSHOP PUPPETBUILDERS ARE PREPARING FOR THE 25TH SEASON OF SESAME STREET WHILE CREATING PUPPETS FOR CITYKIDS A NEW TV SHOW NEXT MONTH ON ABC IN FACT HENSON PRODUCTIONS IS CONSIDERED A MOREPROFESSIONALLY MANAGED COMPANY NOW THAN IT WAS UNDER THE OFTENCHAOTIC RULE OF ITS FOUNDER I MISS JIM TERRIBLY BUT THE COMPANY IS EASIER TO WORK WITH TODAY SAYS CHRISTOPHER CERF WHO HAS WORKED THERE FOR 25 YEARS AS A COMPOSER AND CREATIVE CONSULTANT JIM HAD A HABIT EVEN IF HE HAD AGREED TO A PROJECT OF SAYING OH I DON'T WANT TO DO THAT ANYMORE' THEY DON'T DO THAT NOW NOW WHEN A MEETING IS SCHEDULED THERE'S A GOOD CHANCE IT WILL HAPPEN THE COMPANY ALREADY HAS BRANCHED OUT INTO NEW AREAS INCLUDING SOME MR HENSON PROBABLY NEVER DREAMED OF NEXT YEAR IT TAKES AIM AT ADULTS INSTEAD OF KIDS WITH THE KERMIT COLLECTION A LINE OF UPSCALE CLOTHES WATCHES AND OFFICE ACCESSORIES FOR GROWNUPS WEANED ON SESAME STREET COMING THIS FALL IS A COMPUTER BOOK FOR KINDERGARTENERS CALLED KERMIT LEARNS WINDOWS HENSON'S RECORD LABEL WILL SOON INTRODUCE SCREAMING EDITH A NEW MUPPETS HARDROCK BAND WHOSE VIDEOS HENSON WANTS SHOWN ON MTV STILL THE COMPANY FACES STIFF COMPETITION KIDDIE ENTERTAINMENT IS AN INCREASINGLY CLUTTERED FIELD INCLUDING POWERHOUSE WALT DISNEY CO NEWS CORP'S FOX INC AND VIACOM INC'S NICKELODEON UNIT AND IT REMAINS TO BE SEEN IF THE HENSON COMPANY'S BUSINESS SAVVY CAN COMPENSATE FOR THE LOSS OF MR HENSON'S CREATIVE GENIUS NO ONE YET KNOWS WHETHER THE COMPANY CAN INVENT NEW CHARACTERS AS VIVID AND LASTING AS KERMIT BIG BIRD AND THE REST WE'RE MORE ORGANIZED NOW WHICH MEANS WE CAN DO A LOT MORE THINGS AT ONCE SAYS ALEX ROCKWELL HENSON PRODUCTIONS' HEAD OF CREATIVE AFFAIRS BUT SOMETIMES I WONDER IF WE'LL EVER REACH JIM'S LEVEL OF INSPIRATION WHAT IS MORE THE COMPANY'S TWO TOP EXECUTIVES ONE THE PUPPETEER SON OF MR HENSON AND THE OTHER AN AMBITIOUS OUTSIDER SOMETIMES SEEM AT ODDS ABOUT THE CONCERN'S DESTINY SETTING THE STAGE FOR POTENTIAL CONFLICTS DOWN THE LINE IN 10 YEARS WE HOPE TO BECOME THE LEADING PROVIDER OF QUALITY FAMILY ENTERTAINMENT IN THE WORLD IN ALL MEDIA DECLARES CHARLES RIVKIN THE 30YEAROLD MBA WHO SERVES AS CHIEF OPERATING OFFICER THAT ISN'T QUITE HOW THE HENSON SIBLINGS ENVISION THINGS INCLUDING 29YEAROLD BRIAN THE FIRM'S CHAIRMAN AND CHIEF EXECUTIVE I'D RATHER BE THE BEST THAN THE BIGGEST HE SAYS I DON'T WANT TO EVER DO A PROJECT JUST BECAUSE IT'S COMMERCIAL THE FORMIDABLE EXPANSION PICTURED BY MR RIVKIN WOULD TRANSFORM THE COMPANY AND ITS ARTISTIC CULTURE HENSON PRODUCTIONS IS STILL AT ITS HEART A MOMANDPOP SHOP WHERE PERFECTIONISM IS TAKEN TO EXTREMES IN DETAILS LIKE THE HANDSEWN BUTTONHOLES ON TINY COSTUMES THAT WILL NEVER BE UNBUTTONED CURRENTLY HENSON HAS ESTIMATED ANNUAL REVENUE OF 50 MILLION TO 75 MILLION AND 200 EMPLOYEES MOST OF WHOM WORK IN A WHIMSICAL MANHATTAN TOWNHOUSE UNDER A STAINEDGLASS SKYLIGHT DEPICTING KERMIT'S POND KIDDIEMARKET LEADER DISNEY BY CONTRAST IS A SPRAWLING ORGANIZATION OF 55000 PEOPLE WITH FISCAL 1992 REVENUE OF 75 BILLIONABOUT 100 TIMES THE SIZE OF HENSON STILL HENSON'S ADVISERS PRAISE THE NEW MANAGEMENT'S MOVES SO FAR WHAT THEY HAVE DONE WITH THE COMPANY SINCE JIM DIED IS INCREDIBLE SAYS LAUREN TYLER A VICE PRESIDENT OF ALLEN & CO ONE OF A NUMBER OF INVESTMENT FIRMS PROVIDING INFORMAL ADVICE TO THE HENSON COMPANY THIS IS THE LAST GREAT CHARACTER FRANCHISE AROUND AND THEY HAVE A SMART STRATEGY TO GROW IT THE COMPANY THE HENSON CHILDREN INHERITED WAS BY MANY ACCOUNTS A MESS THOUGH IT IS BELIEVED TO HAVE BEEN PROFITABLE ITS FOUNDER CARED LITTLE FOR DAYTODAY MANAGEMENT HE WAS OFTEN UNREACHABLE JETTING OFF SOMEWHERE OR LOCKED AWAY IN A STUDIO DIRECTING OR SERVING AS PUPPETEER AND VOICE FOR KERMIT THE FROG JIM WAS THE CREATIVE BOTTLENECK SAYS JON STONE A LONGTIME SESAME STREET DIRECTOR NOTHING COULD GET DONE WITHOUT HIS APPROVAL AND IT SLOWED THE COMPANY DOWN HE ALSO HAD BEEN HURT BY A RUN OF BAD LUCK HIS LAST TWO MOVIES THE DARK CRYSTAL AND LABYRINTH WEREN'T HITS HIS AGENT BERNIE BRILLSTEIN SAYS MR HENSON WAS SO UPSET WITH THE WAY UNIVERSAL WAS MARKETING DARK CRYSTAL' HE PAID THE STUDIO 15 MILLION TO BUY THE FILM BACK BEFORE ITS RELEASE HE ONLY BROKE EVEN ON IT SAYS MR BRILLSTEIN LATER NBC CANCELED HIS LAST SERIES THE JIM HENSON HOUR AFTER ONLY FIVE SHOWS A HEFTY SHARE OF PRODUCTION COSTS HAD BEEN BORNE BY THE COMPANY IN PART TO EXTRICATE HIMSELF FROM BOTHERSOME MANAGEMENT DETAILS MR HENSON AGREED TO SELL HIS COMPANY TO DISNEY FOR 150 MILLION THE DEAL CALLED FOR HIM TO CONTINUE CREATING NEW PROGRAMS THAT DISNEY WOULD DISTRIBUTE BUT WHEN HE SUCCUMBED UNEXPECTEDLY TO VIRULENT PNEUMONIA IN MAY 1990 THE ALLIANCE WITH DISNEY CRUMBLED SOON THE HENSON CHILDREN WERE SUING DISNEY FOR EXPLOITING THE MUPPETS CHARACTERS IT DIDN'T YET OWN DISNEY SUED BACK IMPLYING THE HENSONS WERE JUST GREEDY THE LAWSUITS FINALLY WERE SETTLED IN MAY 1991 WITH DISNEY PAYING 10 MILLION FOR LIMITED THEMEPARK RIGHTS TO THE MUPPETS NOW THE FIVE HENSON CHILDREN ALREADY PURSUED BY OTHER WOULDBE BUYERS HAD TO FIGURE OUT EXACTLY WHAT TO DO WITH THEIR COMPANY THEY HUDDLED WITH TRUSTED ADVISERS INCLUDING PUPPETEER FRANK OZ WHO WAS MISS PIGGY TO JIM'S KERMIT AND THEIR MOTHER JANE HENSON WHO WAS SEPARATED FROM JIM BUT WHO STILL COACHES PUPPETEERS THEY DECIDED UNANIMOUSLY THEY SAY TO KEEP THE COMPANY INDEPENDENT AND AGREED THAT BRIAN SHOULD TAKE OVER DESPITE BRIAN'S YOUTH HE IS A DECADE YOUNGER THAN KERMIT WHO WAS CREATED IN 1954 HE IS THE CHILD MOST LIKE HIS FATHER IN SKILL AND TEMPERAMENT HE FINISHED ONLY ONE YEAR OF COLLEGE BUT HE HAD BEEN PERFORMING WITH PUPPETS SINCE AGE 17 HE HAD SPENT YEARS AT HENSON'S CREATURE SHOP IN LONDON BUILDING HIGHTECH PUPPETS INCLUDING THOSE USED IN THE MOVIE TEENAGE MUTANT NINJA TURTLES WHICH HE ALSO HELPED DIRECT SOME THOUGHT THE STRONGER CANDIDATE FOR THE TOP JOB WAS HIS OLDER SISTER LISA 33 AN EXPERIENCED MOVIE EXECUTIVE BUT SHE PREFERRED TO STAY ON THE HOLLYWOOD FAST TRACK AND IS ABOUT TO BECOME PRESIDENT OF PRODUCTION FOR SONY CORP'S COLUMBIA PICTURES NOR WAS CHERYL 32 INTERESTED IN RUNNING THE COMPANY AN INTROSPECTIVE TEXTILE DESIGNER HER FORTE IS NONPROFIT PROJECTS SUCH AS AN INTERNATIONAL PUPPET FESTIVAL SHE STARTED SHE SERVES AS THE COMPANY'S LIAISON WITH CHILDREN'S TELEVISION WORKSHOP WHICH PRODUCES SESAME STREET THE TWO YOUNGEST HENSONS JOHN 28 AND HEATHER 22 HAD WORKED ONLY OCCASIONALLY WITH THE FAMILY COMPANY TO HELP REVIVE HENSON PRODUCTIONS' OPERATIONS BRIAN TURNED TO MR RIVKIN WHO HAD BEEN HIRED BY JIM HENSON RIGHT OUT OF HARVARD BUSINESS SCHOOL IN 1988 MR RIVKIN HAD HIS WORK CUT OUT FOR HIM THE BOOKS WERE IN CHAOS SAYS RON POWERS WHOSE BIOGRAPHY OF JIM HENSON IS DUE OUT NEXT YEAR THERE WASN'T ANY CORRUPTION OR ANYTHING JUST THE MUDDLE OF A KIND OF HIPPIE ENTREPRENEUR MR RIVKIN SAYS ONLY THAT SUCCESS OUTRAN THE COMPANY'S ORGANIZATIONAL CAPACITY HE MOVED QUICKLY TO MAKE CHANGES AMONG OTHER THINGS HE STARTED THE VIDEO AND RECORD UNITS AND THEN SHOPPED AROUND FOR LONGTERM DEALS WITH DISTRIBUTORS WITH RETAIL CLOUT WHILE THE TWO YOUNG HENSON EXECUTIVES ARE VASTLY DIFFERENT IN STYLE MR RIVKIN FAVORS DARK SUITS WHILE BRIAN HENSON SAYS HE DOESN'T OWN A TIE THEY SAY THEY USUALLY AGREE ON STRATEGY TOGETHER THEY WERE DETERMINED TO MORE FULLY EXPLOIT THE CHARACTERS JIM HENSON HAD CREATED THEY ALSO HAD TO REVIVE THE PRODUCTION SIDE NEXT TO NOTHING WAS IN THE PIPELINE FOR A YEAR WAITING FOR THE MERGER ONE OF THEIR FIRST MOVES WAS TO PATCH UP DIFFERENCES WITH DISNEY THEY NEGOTIATED A DEAL FOR DISNEY'S POWERFUL DISTRIBUTION ARM TO HANDLE HENSON VIDEOS INCLUDING THE NEW MUPPETS RELEASE BILLY BUNNY'S ANIMAL SONGS WHICH SOLD 175000 COPIES IN ITS FIRST TWO MONTHS THE VIDEO DEAL HAS BEEN A HOME RUN SAYS JEFFREY KATZENBERG CHAIRMAN OF DISNEY'S STUDIO UNIT THE OLD MATERIAL ALONE IS SELLING MILLIONS AND MILLIONS OF UNITS AND THIS IS SOMETHING THAT USED TO JUST COLLECT DUST IN A VAULT THOUGH MOST EMPLOYEES REMAIN IN NEW YORK THE YOUNG MR HENSON ALSO MOVED THE COMPANY'S HEADQUARTERS TO LOS ANGELES SIGNALING THE COMPANY'S INTENTION TO BE A BIGGER PLAYER IN THE MOVIE AND TV BUSINESS BY EARLY 1991 HE WAS COPRODUCING DINOSAURS AN ABC SITCOM STARRING EIGHTFOOTTALL PUPPETS MADE BY HENSON IN PARTNERSHIP WITH DISNEY AND ANOTHER PRODUCER DINOSAURS SOON BECAME THE NO 1 CHILDREN'S SHOW IN PRIME TIME A SPOT IT STILL HOLDS LAST SUMMER BRIAN HENSON DIRECTED HIS FIRST FEATURE FILM A CHRISTMAS CAROL WITH KERMIT AS BOB CRATCHIT AND MICHAEL CAINE AS SCROOGE SOME CRITICS SAVAGED THE RESULT THE WASHINGTON POST CALLED IT SADLY DULL AND UNIMAGINATIVE BUT THE 12 MILLION MOVIE PULLED IN 275 MILLION IN THEATERS LAST WINTER THIS HOLIDAY SEASON THE COMPANY HOPES TO SELL SEVERAL MILLION HOMEVIDEO COPIES AT 2499 EACH THE FILMING CEMENTED BRIAN'S ACCEPTANCE BY THE COMPANY'S ARMY OF PUPPETEERS THAT'S WHEN I KNEW EVERYTHING WOULD BE FINE SAYS STEVE WHITMIRE WHO WAS TAPPED BY BRIAN TO SUCCEED HIS FATHER AS THE PUPPETEER AND VOICE FOR KERMIT DESPITE THE COMPANY'S NEW PROJECTS AND BIG PLANS SOME ANALYSTS QUESTION WHETHER A COMPANY OF HENSON'S SIZE WHICH DEPENDS ON OTHERS TO DISTRIBUTE ITS PRODUCTS WILL EVER BE MORE THAN A NICHE PLAYER THIS MAY BE A GREAT COMPANY FOR THE FAMILY BUT IT WON'T EVER BE A GREAT COMPANY FOR AN OUTSIDE INVESTOR SAYS MICHAEL GARIN OF INVESTMENT FIRM FURMAN SELZ INC WITHOUT CONTROLLING THEIR OWN DISTRIBUTION THEY CAN'T CONTROL THEIR DESTINY HENSON'S BIGGEST RISK SO FAR IS CITYKIDS THE COMPANY'S FIRST FORAY OUT OF PUPPETDOMINATED CHILDREN'S PROGRAMMING THE SERIES WHICH WILL BE BROADCAST SATURDAY MORNINGS FOCUSES ON SEVEN INNERCITY TEENAGERS DEALING WITH ISSUES LIKE PEER PRESSURE AND RACISM PUPPETS ONLY APPEAR IN SEPARATE SEGMENTS LIKE ONE FEATURING THE DIRT SISTERS TWO PUPPETS WHO DISH THE DIRT ON THE TELEPHONE ABOUT THE HUMAN CHARACTERS TALK ABOUT DOGS DID YOU GET A LOAD OF ANGELICA IN THAT POLYESTER FASTFOOD UNIFORM ASKS TOYA A PURPLE PUPPET WITH ORANGE LIPS MUPPET PRESS CHIEF JANE LEVANTHAL ENVISIONS ALL KINDS OF POTENTIAL TIEINS LIKE AN EXPERIMENTAL LINE OF CITYKIDS BOOKS WE MIGHT TRY TO MAKE THEM THE SHAPE OF A COMPACT DISK STICK IN A CD WITH MUSIC FROM THE SHOW AND SELL THEM AT DRUGSTORES AND FASTFOOD OUTLETS WHERE KIDS GO SHE SAYS IF CITYKIDS FLOPS THOUGH HENSON STANDS TO LOSE MILLIONS ABC'S CONTRIBUTION IN THE PROGRAM DOESN'T COMPLETELY COVER HENSON'S COSTS OF PRODUCTION TO MAKE MONEY THE SHOW MUST LAST LONG ENOUGH TO BE SOLD INTO SYNDICATION AND ITS CHARACTERS MUST BE MARKETABLE EVEN THEN PROFITS WOULD BE LIMITED SINCE THEY MUST BE SHARED WITH THE CITYKIDS ORGANIZATION A NONPROFIT GROUP THAT IS HENSON'S PARTNER IN THE SERIES CITYKIDS IS ALSO RISKY ARTISTICALLY JIM HENSON'S WIDOW WHO WORKED AT THE COMPANY FOR YEARS WITH HER HUSBAND SAYS IT IS SOMETHING THE TWO OF THEM WOULD NEVER HAVE DONE FOR ONE THING IT HAS VERY LITTLE PUPPETS IN IT THOUGH MRS HENSON HAS NO MANAGEMENT ROLE OR OWNERSHIP IN THE COMPANY SHE CARRIES QUITE A BIT OF CLOUT WITH ITS ONLY SHAREHOLDERS HER CHILDREN SHE IS CONSIDERED THE FAMILY HISTORIAN AND KEEPER OF THE FLAME FROM AN OFFICE IN THE HENSON PRODUCTIONS TOWNHOUSE SHE RUNS THE JIM HENSON LEGACY WHICH AMONG OTHER TRIBUTES IS PLANNING A FILM FESTIVAL OF HER LATE HUSBAND'S WORK AT LINCOLN CENTER NEXT MONTH FIERCELY PROTECTIVE OF THE COMPANY SHE RIPPED APART A DISPLAY AT A TRADE FAIR LAST YEAR THAT SHE SAYS WAS USING UNAUTHORIZED MUPPETS FILM CLIPS I'D RATHER HAVE THE COMPANY GET SMALLER THAN BIGGER SHE SAYS ALTHOUGH DAUGHTER LISA CONTENDS MOM KNOWS SHE WON'T HOLD THE COMPANY BACK GOING FORWARD HOWEVER IS ANOTHER MATTER CAN THEY BE A WORLDWIDE CONGLOMERATE I DON'T KNOW SAYS BILL HABER OF CREATIVE ARTISTS AGENCY WHO HAS REPRESENTED THE COMPANY IN HOLLYWOOD SINCE JIM DIED BUT MY FEELING IS THAT THEY'VE JUST BEGUN AND THEY CAN BE AS BIG AS THEY WANT BECAUSE THEY HAVE A FLEXIBILITY JIM WOULD NEVER ALLOW 9308090028 930809 COLORADO ACTIVISTS DECIDE NOT TO BE HOLIERTHANTHOU ENVIRONMENTALISTS ARE FUMING OVER MASS MASS IN ROCKIES BUT BOW TO PAPAL PRIVILEGE BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL DENVER ON A TYPICAL DAY AT PICTURESQUE CHERRY CREEK STATE PARK STAFFERS START TURNING PEOPLE AWAY AFTER 3600 VISITORS PASS THROUGH THE GATES THIS WEEKEND HOWEVER WILL BE DIFFERENT AND IT IS ENOUGH TO MAKE A NATURE LOVER PLEAD FOR DIVINE INTERVENTION BY SUNDAY AN ESTIMATED 500000 PEOPLE WILL HAVE DESCENDED ON THIS COLLECTION OF LOW ROLLING HILLS JUST OUTSIDE THE CITY LIMITS MANY WILL TAKE CARS AND BUSES AS CLOSE AS THEY CAN GET THEN WALK THE REST OF THE WAY SOME TOTING BLANKETS AND BEDROLLS TRAMPLING SENSITIVE PRAIRIE GRASSES AND DISTURBING COLONIES OF BUTTERFLIES THEY WILL WOLF DOWN FOOD PROVIDED BY MCDONALD'S HAULED IN BY 200 TRACTORTRAILERS THEY WILL LINE UP TO USE 1300 PORTABLE TOILETS MANY ENVIRONMENTALISTS ARE INCENSED BUT THERE ISN'T MUCH THEY CAN DO ABOUT IT THE REASON IS SIMPLE THESE INVADERS OF NATURE ARE GATHERING TO SEE HIS HOLINESS POPE JOHN PAUL II THIS PUTS ENVIRONMENTAL ACTIVISTS IN POLITICAL TERRITORY AS DELICATE AS THE HABITAT OF THE LOCAL PAWNEE SKIPPER BUTTERFLY I THINK IT'S RIDICULOUS TO HOLD IT HERE SAYS BOB LEHMAN A RETIRED WILDLIFE BIOLOGIST AND MEMBER OF THE DENVER AUDUBON SOCIETY'S CONSERVATION COMMITTEE BUT WHO'S GOING TO TELL THE POPE NOT TO COME OPPONENTS OF THE PARK'S SELECTION RAISED THEIR VOICES MONTHS AGO BUT SOON THE GRAVITY OF THE VISIT BECAME OVERPOWERING IT SENT THEM DIVING FOR COVER THIS IS THE FIRST APPEARANCE OF THE POPE IN THE US IN SIX YEARS AND COLORADO IS HIS ONLY STOP THE PAPAL VISIT FOR THE WORLD YOUTH DAY CONFERENCE A BIENNIAL GATHERING OF ROMAN CATHOLIC YOUTH INCLUDES AN AUDIENCE FOR PRESIDENT CLINTON THURSDAY A PRAYER VIGIL SATURDAY AND A MASS SUNDAY GIVEN THAT THIS IS THE LARGEST EVENT EVER HELD IN COLORADO LOCAL ORGANIZERS SAY THEY HAD LITTLE CHOICE BUT TO USE THE PARK THE 76000SEAT MILE HIGH STADIUM WASN'T BIG ENOUGH A GOLF COURSE WAS DISMISSED AS TOO EXPENSIVE TO RESOD AN OFFICE PARK WAS TOO DISTANT THEY WERE LEFT WITH A 120ACRE SECTION OF CHERRY CREEK IN SOME WAYS IT'S AN IDEAL SPOT IT HAS THE CLEANEST SIGHT LINES OF THE ALTAR SAYS CINDY MATTHEWS A WORLD YOUTH DAY SPOKESWOMAN IN OTHER WAYS IT'S NOT A GREAT PLACE BECAUSE THERE'S NO INFRASTRUCTURE SO THE ORGANIZERS ARE BRINGING THEIR OWN INCLUDING THE PORTABLE TOILETS DUBBED VATICANS BY COUNTY HEALTH WORKERS AND TWO MILES OF PIPES TO PUMP AN ESTIMATED MILLION GALLONS OF WATER THEY ARE BURYING TWO MILES OF ELECTRIC LINES ENOUGH TO POWER A CITY OF 54000 AND A HALF MILE OF FIBEROPTIC CABLES FOR SEVERAL HUNDRED TELEPHONES CONSTRUCTION CREWS ARE USING FRONTEND LOADERS TO BUILD 13 MILES OF TEMPORARY ROADS AND PATHS ALL THIS ENVIRONMENTALISTS SAY WILL DO ENORMOUS DAMAGE TO THE PARK 3900 ACRES THAT INCLUDE A LAKE STOCKED WITH WALLEYE AND STUNNING VIEWS OF THE ROCKY MOUNTAINS' RAMPART RANGE MOREOVER THEY SAY STATE LAW DESIGNATES THE AREA FOR LOWDENSITY USE UNDER ITS OWN REGULATIONS THE DIVISION OF PARKS HAD THE OBLIGATION TO SAY NO CONTENDS THOMAS QUINN A LAWYER FOR THE SIERRA CLUB'S ROCKY MOUNTAIN CHAPTER STATE OFFICIALS SAY THEY INTERPRET THE RULES DIFFERENTLY ALSO AMID VISIONS OF GUNS 'N ROSES FANS TRASHING THE LANDSCAPE AT A FUTURE ROCK CONCERT SOME ARE CONCERNED ABOUT SETTING A PRECEDENT WE THINK IT OPENS THE DOOR FOR OTHER PEOPLE TO BE ASKING TO USE THE PARK SAYS CAROLYN ARMSTRONG CHERRY CREEK'S MANAGER BUT PROTESTING THE EVENT INCURRED WRATH RIGHT AWAY TELEPHONE CALLS FROM CATHOLIC MEMBERS ACCUSED THE SIERRA CLUB OF ANTICATHOLICISM A FEW CANCELED THEIR MEMBERSHIPS EDITORIALS THUNDERED AS FAR AWAY AS CALIFORNIA YOU'D THINK A GROUP WITH THE POLITICAL SEASONING OF THE SIERRA CLUB WOULD HAVE MORE SAVVY THAN TO OPPOSE AN APPEARANCE BY THE POPE SIMPLY BECAUSE HIS AUDIENCE MIGHT TRAMPLE THE GRASS SCOLDED THE ORANGE COUNTY REGISTER THE SIERRA CLUB ABANDONED THE IDEA OF A LAWSUIT IT PROBABLY WOULD HAVE BEEN A PUBLICRELATIONS NIGHTMARE SAYS MR QUINN A CATHOLIC ALSO THE CHAPTER LACKED FUNDS FOR WHAT LOOKED LIKE A BITTER FIGHT SOME ARE STILL CHAFING WHAT IF THEY WERE TALKING ABOUT 500000 MUSLIMS WHO WERE GOING TO COME HERE ASKS STEVE FARLEY CHAIRMAN OF THE CHAPTER'S HIGH PLAINS GROUP AND ALSO A CATHOLIC LOOKING BACK MR QUINN THINKS THEY SHOULD HAVE BEEN MORE AGGRESSIVE WE THOUGHT IF WE POINTED OUT THE PROBLEMS SOMEBODY WAS GOING TO LISTEN HE SAYS NOW MR QUINN SAYS HE FEELS THEY WERE NAIVE AND SHOULD HAVE FILED SUIT BACK IN 1992 AND STARTED RAISING MONEY TO GIRD FOR BATTLE ORGANIZERS OF THE EVENT CONCEDE THAT THE PARK'S VEGETATION INCLUDING GRASSES WEEDS AND AMERICAN PLUM TREES WHICH PREVENT EROSION WILL BE DAMAGED AND ITS WILDLIFE AFFECTED SOME PARK ANIMALS WILL HAVE THEIR HUNTING ROUTINES DISRUPTED AND OTHERS INEVITABLY WILL BECOME ROAD KILL BY MOST ESTIMATES IT WILL TAKE AT LEAST TWO YEARS FOR GRASSES AND PLANTS TO GROW BACK DRY WEATHER COULD EXTEND THAT TO FIVE ORGANIZERS SAY THE DAMAGE WILL BE MINIMAL AND FIXABLE TO GET A STATE PERMIT THEY POSTED A 200000 PERFORMANCE BOND AND AGREED TO RETURN THE SITE TO ITS PREVIOUS CONDITION OR BETTER AN ECOLOGY CONSULTING FIRM RETAINED BY ORGANIZERS RECOMMENDED PUTTING TEMPORARY FENCES AROUND THE HABITAT OF THE PAWNEE SKIPPER A SUBSPECIES OF THE PAWNEE MONTANE SKIPPER A FEDERALLY THREATENED BUTTERFLY SPECIES AN AREA THAT BLUE HERONS FREQUENT ALSO WILL BE FENCED BUT CRITICS SAY IT WILL BE IMPOSSIBLE TO KEEP SUCH A VAST CROWD AWAY FROM SENSITIVE AREAS ALREADY THEY SAY THE ORGANIZERS HAVE IGNORED A RECOMMENDATION TO AVOID MOWING THE PAWNEE SKIPPER HABITAT UNLESS ABSOLUTELY NECESSARY TO PROTECT PUPATING BUTTERFLIES A STATE OFFICIAL CONCEDES THAT A MOWER MADE ONE PASS AT THE BLUE GRAMA GRASS AREA BUT SAYS DAMAGE WAS VERY NEGLIGIBLE SOME SEE AN IRONY HERE BECAUSE THE CHURCH HAS BECOME MORE VOCAL ON ENVIRONMENTAL ISSUES IN RECENT YEARS IN HIS 1990 NEW YEAR'S DAY ADDRESS POPE JOHN PAUL AN AVID SKIER AND HIKER URGED CATHOLICS TO PROTECT NATURAL RESOURCES AGAINST PLUNDERING AND UNCONTROLLED DESTRUCTION THE NATIONAL CONFERENCE OF CATHOLIC BISHOPS ISSUED A POLICY STATEMENT ON THE ENVIRONMENT IN 1991 CALLING FOR A GODCENTERED AND SACRAMENTAL VIEW OF THE UNIVERSE WHICH MAKES HUMANS ACCOUNTABLE FOR THE FATE OF THE EARTH DENVER ARCHBISHOP J FRANCIS STAFFORD SAYS THE ARCHDIOCESE AND WORLD YOUTH DAY PLANNERS WOULDN'T DO ANYTHING THAT MIGHT PUT THE POPE IN AN AWKWARD POSITION OR COMPROMISE CHURCH TEACHINGS ON THE ENVIRONMENT A VATICAN OFFICIAL SAYS THE CHURCH IS AWARE OF SOME PROBLEMS BUT SAYS THEY ARE THE RESPONSIBILITY OF THE LOCAL ORGANIZATION MEANWHILE THE ENVIRONMENTALISTS HAVE DECIDED TO SOW RATHER THAN SULK THE SIERRA CLUB THE DENVER AUDUBON SOCIETY AND THE COLORADO NATIVE PLANTS SOCIETY HAVE SAID THEY WILL WORK WITH THE CHURCH AND THE PARKS DIVISION TO RESURRECT THE SITE AFTER THE MASS 9308090027 930809 CREDIT RATINGS ANNTAYLOR STORES CORP NEW YORK STANDARD & POOR'S CORP RAISED ITS RATING ON THIS RETAILER'S SUBORDINATED LONGTERM DEBT TO SINGLEBPLUS FROM SINGLEB ABOUT 195 MILLION IN DEBT IS AFFECTED S&P SAID THE UPGRADE REFLECTS THE SUCCESSFUL SALE OF 110 MILLION IN SUBORDINATED LONGTERM DEBT AND THE COMPLETION OF A 135 MILLION BANK CREDIT FACILITY S&P SAID ITS IMPLIED SENIOR DEBT RATING FOR ANNTAYLOR IS DOUBLEB NOBLE AFFILIATES INC ARDMORE OKLA STANDARD & POOR'S CORP SAID IT RAISED ITS RATING ON THIS OIL AND GAS CONCERN'S SENIOR UNSECURED DEBT TO TRIPLEB FROM TRIPLEBMINUS ABOUT 125 MILLION IN DEBT IS AFFECTED THE RATINGS AGENCY ALSO REMOVED NOBLE FROM ITS CREDITWATCH LIST WHERE IT HAD BEEN PLACED APRIL 5 S&P SAID THE UPGRADE REFLECTS NOBLE'S INCREASED FINANCIAL FLEXIBILITY AFTER ITS RECENT CONVERSION OF 100 MILLION OF CONVERTIBLE DEBENTURES TO COMMON STOCK THE IMPROVED RATING ALSO REFLECTS NOBLE'S ABILITY TO ACCOMMODATE A SIGNIFICANTSIZED ACQUISITION 9308090025 930809 FINANCING BUSINESS PRICE REIT INC PRICE REIT INC LA JOLLA CALIF LAUNCHED AN INITIAL PUBLIC OFFERING OF 43 MILLION SHARES OF ITS SERIES B COMMON STOCK PRICED AT 3250 A SHARE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO AND LEHMAN BROTHERS THE REAL ESTATE INVESTMENT TRUST ALSO WILL SELL 600000 SERIES B COMMON SHARES AT THE SAME PRICE TO TWO TRUSTS AFFILIATED WITH SOL PRICE THE COMPANY'S CHAIRMAN PRICE REIT SAID IT EXPECTS TO PAY AN ANNUAL DIVIDEND OF 252 ON SHARES INCLUDED IN THE OFFERING THE COMPANY PLANS TO USE ABOUT 1165 MILLION OF APPROXIMATELY 150 MILLION IN NET PROCEEDS FOR ACQUISITION OF ADDITIONAL RETAIL PROPERTIES AN ADDITIONAL 334 MILLION WILL BE USED TO REPAY DEBT THE COMPANY SAID 9308090024 930809 WHO'S NEWS FOUR DIRECTORS RESIGN POSTS ON THE BOARD OF LA QUINTA REALTY SAN ANTONIO LA QUINTA MOTOR INNS LP SAID FOUR DIRECTORS RESIGNED FROM THE FIVEMEMBER BOARD OF LA QUINTA REALTY CORP THE GENERAL PARTNER OF THE LIMITED PARTNERSHIP AND A UNIT OF LA QUINTA MOTOR INNS INC A MOTELCHAIN OPERATOR ALSO BASED IN SAN ANTONIO A PARTNERSHIP SPOKESWOMAN SAID THE DIRECTORS HAD DECIDED TO RESIGN FOLLOWING THE SETTLEMENT LAST MONTH OF THE PARTNERSHIP'S LONGRUNNING AND OFTEN BITTER BATTLE WITH RONIN PARTNERS LP STAMFORD CONN A MAJOR UNITHOLDER WHOSE BID TO TAKE CONTROL OF THE PARTNERSHIP FAILED WHAT THEY PROBABLY THOUGHT WAS A PRETTY EASY JOB TURNED INTO A PERSONAL NIGHTMARE SAID MICHAEL G MUELLER AN ANALYST WITH MONTGOMERY SECURITIES I THINK THEY WERE JUST INTENT ON RESIGNING ONCE THIS THING WAS OVER IT DIDN'T SURPRISE ME HE ADDED THE DEPARTING BOARD MEMBERS INCLUDE WALTER J BIEGLER 51 YEARS OLD CHIEF FINANCIAL OFFICER OF PERIODICAL MANAGEMENT GROUP INC SAN ANTONIO THOMAS J SINENI 49 PRESIDENT OF THE SAN ANTONIO DIVISION OF GRUBB & ELLIS CO A SAN FRANCISCOBASED REALESTATE BROKERAGE CONCERN ALAN L TALLIS 47 A SAN ANTONIOBASED HOTEL DEVELOPER AND ROBERT E WITT 52 DEAN OF THE UNIVERSITY OF TEXAS'S COLLEGE OF BUSINESS ADMINISTRATION AND GRADUATE SCHOOL OF BUSINESS THE PARTNERSHIP SAID THAT TWO OF THE FOUR EMPTY BOARD SEATS WOULD BE FILLED BY STEVEN T SCHULTZ 46 PRESIDENT OF LA QUINTA REALTY AND WILLIAM C HAMMETT JR 46 VICE PRESIDENTTREASURER OF LA QUINTA REALTY THE PARTNERSHIP SAID IT WOULD SEEK ADDITIONAL CANDIDATES FOR THE OTHER TWO SEATS 9308090023 930809 OWENSCORNING DATA ARE ALLEGEDLY STOLEN FBI ARRESTS TWO MEN TAMPA FLA AP TWO EUROPEANS WERE ARRESTED AT A HOTEL FOR ALLEGEDLY STEALING TRADE SECRETS WORTH 10 MILLION FROM AN OWENSCORNING FIBERGLAS CORP PLANT IN BELGIUM A FRENCHSPEAKING FBI AGENT WHO POSED AS AN OWENSCORNING COMPETITOR INTERESTED IN BUYING DOCUMENTS STOLEN FROM THE PLANT IN BATISTE BELGIUM RECOVERED THE DOCUMENTS AND MADE THE ARRESTS SAID FBI SPOKESMAN LARRY CURTIN MARCEL PAULY 48 AND MICHEL RUSSO 34 WERE ARRESTED SATURDAY AFTER DISCUSSING THE PAPERS AND OFFERING THEM FOR VIEWING THE FBI SAID MR PAULY IS A FRENCH NATIONAL AND WAS AN OWENSCORNING MECHANIC FOR 20 YEARS AUTHORITIES SAID MR RUSSO IS AN ITALIAN PRIVATE INVESTIGATOR WHO WAS BORN IN BELGIUM THE PAPERWORK DETAILED THE MANUFACTURING PROCESS OF FIBERGLASS REINFORCEMENT FOR PLASTICS USED IN AUTOMOTIVE ELECTRICAL AND APPLIANCE PARTS MR CURTIN SAID OWENSCORNING IS BASED IN TOLEDO OHIO BOTH MEN WERE CHARGED WITH INTERSTATE TRANSPORTATION OF STOLEN PROPERTY IF CONVICTED EACH FACES AS MUCH AS 10 YEARS IN PRISON AND A 10000 FINE 9308090022 930809 WHO'S NEWS DUPONT CO DUPONT CO WILMINGTON DEL ROBERT VD LUFT SENIOR VICE PRESIDENT FOR THIS CHEMICAL COMPANY WAS NAMED PRESIDENT OF ITS DUPONT EUROPE DIVISION MR LUFT 58 YEARS OLD SUCCEEDS DAVID VS WILLIAMSON 57 WHO IS RETIRING 9308090021 930809 WHO'S NEWS WACKENHUT CORP WACKENHUT CORP CORAL GABLES FLA RICHARD C DECOOK 51 YEARS OLD WAS APPOINTED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE SECURITY PROVIDER MR DECOOK WHO MOST RECENTLY SERVED AS VICE PRESIDENT FINANCIAL PLANNING AND CONTROL FOR TRINOVA CORP IN TOLEDO OHIO SUCCEEDS MICHAEL DIGREGORIO 38 WHO RESIGNED IN MAY TO SERVE AS CHIEF FINANCIAL OFFICER AT THE ATLANTIS GROUP IN MIAMI 9308090020 930809 DIVIDENDS VIRGINIA FIRST SAVINGS BANK FSB VIRGINIA FIRST SAVINGS BANK FSB HELPED BY RECORD VOLUME IN RESIDENTIAL MORTGAGE LOANS REINSTATED ITS DIVIDEND AND SAID EARNINGS JUMPED SHARPLY FOR THE FISCAL YEAR ENDED JUNE 30 NET INCOME WAS 64 MILLION OR 234 PER SHARE UP FROM 2 MILLION OR 76 CENTS PER SHARE A YEAR EARLIER THE ANNUAL RESULTS INCLUDED AN ACCOUNTING CHANGE OF 12 MILLION OR 43 CENTS PER SHARE THE PETERSBURGBASED BANK ALSO DECLARED A QUARTERLY DIVIDEND OF 25 CENTS PER SHARE TO STOCKHOLDERS OF RECORD AUG 13 9308090019 930809 LEISURE & ARTS BOOKSHELF NEW FROM ARCHER DEIGHTON ET AL BY TOM NOLAN AN IRAQI PLAN TO HUMILIATE THE US AND ITS NEW ADMINISTRATION DRIVES THE PLOT OF HONOR AMONG THIEVES HARPERCOLLINS 381 PAGES 23 A LONG SLICK COMEDIC THRILLER BY JEFFREY ARCHER ENGLISH AUTHOR AND MEMBER OF THE HOUSE OF LORDS A HUGE CASH PAYMENT SECURES A US FATHERSON TEAM AND A GALLERY OF CON MEN TO STEAL THE DECLARATION OF INDEPENDENCE FROM ITS ARCHIVAL NICHE IN ORDER TO DELIVER IT TO SADDAM HUSSEIN HONOR AMONG THIEVES TREADS SOME OF THE SAME COMIC TURF TILLED BY WRITERS SUCH AS ROSS THOMAS AND DONALD WESTLAKE BUT WITH LESS WIT AND MORE FANTASY EVEN THE PREMISE SEEMS QUIXOTIC SOMEHOW ONE FEELS THE REALLIFE HUSSEIN HAS BIGGER OR UGLIER FISH TO FRY AMONG MR ARCHER'S FICTIONAL CHARACTERS A MASTER FORGER NAMED WILLIAM DOLLAR BILL O'REILLY IS ESPECIALLY HARD TO ACCEPT VERBALLY ADROIT TECHNICALLY EXPERT AND STILL ABLE TO TURN OUT EXACT COPIES OF ANTIQUE DOCUMENTS EVEN AFTER A LIFETIME'S INDULGENCE IN ALCOHOL NEVERTHELESS MR ARCHER GOES ALL OUT TO SIMULATE REALITY WITH SCENES SET IN IRAQI INNER SANCTUMS AND DC POWER CORRIDORS POPULATED WITH ACTUAL FIGURES SUCH AS HUSSEIN AND SECRETARY OF STATE WARREN CHRISTOPHER THE INDIANA JONESTYPE YALE PROFESSORSPY SENT INTO THE FIELD TO RECOVER THE DECLARATION CROSSES PATHS IN EUROPE WITH A BEAUTIFUL MODEL TURNED MOSSAD AGENT WORKING UNDERCOVER IN THE IRAQI FOREIGN SERVICE ROMANCE DANGER AND DEATH ENSUE WITH OCCASIONALLY DIVERTING EFFECTS THE SAME CANNOT BE SAID FOR ANOTHER BRITISH WRITER'S LATEST FORAY ONTO AMERICAN TERRAIN LEN DEIGHTON'S VIOLENT WARD HARPERCOLLINS 305 PAGES 23 SET IN 1992 LOS ANGELES PRESENTS AS ITS FIRSTPERSON NARRATOR MICKEY MURPHY A LOWRENT CRIMINAL LAWYER WITH OCCASIONAL UPSCALE CLIENTS AMONG HIS BLESSINGS ARE A VINTAGE CADILLAC HIS BURDENS INCLUDE AN EXWIFE WHO THREATENS SUICIDE BETWEEN CAREER MOVES A SON ATTENDING USC THE UNIVERSITY OF SPOILED CHILDREN AND A VAGUE GERMAN SECRETARY BUT DESPITE HIS COLORFUL TRAPPINGS MURPHY REMAINS A CARICATURE HIS RELENTLESS WISECRACKING OFTEN MISFIRES AND HIS CULTURAL REFERENCES ARE OFTEN OFF HE REFERS TO LA AS THE BIG LALA SOMETHING NO NATIVE WOULD DO THE STORY OF VIOLENT WARD SUCH AS IT IS HAS MURPHY ATTEMPTING TO SAVE HIS HIGHSCHOOL SWEETHEART FROM BEING MURDERED BY HER MENACING WHEELERDEALER HUSBAND OR IS IT THAT SHE WANTS TO ELIMINATE HIM FALSE IDENTITIES FAKED DEATHS AND HIGHSTAKES SWINDLES ARE OTHER ELEMENTS IN THE UNINSPIRED MIX LA'S CIVIL DISTURBANCES ARE DRAGGED IN GRATUITOUSLY AT THE END OF THIS UNRAVELING YARN WHEN THE CHIPS ARE DOWN OF COURSE IT'S THE OTHERWISE HAPLESS MURPHY WHO PREVIOUSLY HAS SEEMED LUCKY TO NEGOTIATE THE FREEWAYS LET ALONE A COURTROOM WHO COMES OUT ONE STEP AHEAD OF THE GAME COLD WARORIENTED FICTION WRITERS LIKE MR DEIGHTON FACE SPECIAL CHALLENGES IN FINDING NEW THEMES AND SCENES LESSTOPICAL AUTHORS SUCH AS RUTH RENDELL SIMPLY CONTINUE TO EXPLORE THE PECULIAR BEHAVIOR OF INDIVIDUAL HUMAN BEINGS MS RENDELL'S LATEST ABSORBING COMPLEXLY CRAFTED NOVEL IS ANNA'S BOOK HARMONY 394 PAGES 22 PUBLISHED UNDER HER BARBARA VINE PSEUDONYM THE TEXT OF ANNA'S BOOK IS LARGELY DIVIDED BETWEEN THE FIRSTPERSON NARRATIVES OF TWO WOMEN ANNA WESTERBY A DANE WHO MOVES TO LONDON WITH HER HUSBAND IN 1905 AND KEEPS A DIARY FOR THE NEXT 62 YEARS AND ANN EASTBROOK ANNA'S GRANDDAUGHTER WHOSE COMMENTARY BEGINS IN 1988 BETWEEN THE TWO NARRATORS IN TIME AND TEMPERAMENT IS SWANNY ANNA'S DAUGHTER AND ANN'S AUNT WHOSE PUBLICATION OF ANNA'S DIARIES BRINGS HER GREAT SUCCESS AND CELEBRITY FOLDED INTO ANNA'S AND ANN'S CHRONICLES IS MATERIAL RELATING TO A NOTORIOUS MURDER TRIAL OF 1905 MIGHT SWANNY ACTUALLY BE THE INFANT WHO DISAPPEARED FROM THE SCENE OF THIS GRUESOME CRIME MS RENDELL/VINE'S RECREATION OF THE DOCUMENTS PERTAINING TO THE CASE COME OFF AS PITCHPERFECT AS HER EXCERPTS FROM ANNA'S DIARIES SOME READERS MAY DISAGREE WITH ANN'S CONCLUSION THAT THERE AREN'T MANY ELEMENTS OF COINCIDENCE AS THE SECRET IS FINALLY REVEALED BUT FEW WILL DENY THAT THIS SIXTH NOVEL BY BARBARA VINE IS A BRILLIANTLY EXECUTED TOUR DE FORCE WITH SCOTT TUROW AND JOHN GRISHAM PROVIDING WELLHEELED MODELS OTHER LAWYERS ARE LEAVING BRIEFS FOR THRILLERS A QUESTION OF PROOF CROWN 351 PAGES 22 THE FIFTH NOVEL BY YALE LAW SCHOOL GRADUATE JOSEPH AMIEL STARS DAN LAZAR A HARDCHARGING DEFENSE ATTORNEY WHEN PHILADELPHIA'S MOST PROMINENT NEWSPAPER PUBLISHER IS FOUND DEAD LAZAR ACCEPTS THE MAIN MURDER SUSPECT AS A CLIENT SUSAN BOELTER THE VICTIM'S WIFE LAZAR'S DEFENSE IS COMPLICATED BY HIS ROMANTIC FEELINGS FOR THE WIDOW AND BY AN ATTEMPT TO HAVE HIM DISBARRED OVER A TRUMPEDUP BRIBERY CHARGE NEVERTHELESS LAZAR MANAGES TO UNCOVER PERJURY BLACKMAIL AND MALFEASANCE IN HIGH PLACES THROUGH ENERGETIC PROBING IN AND OUT OF COURT MR AMIEL'S LEGAL EXPERTISE LENDS VERISIMILITUDE TO THE COMPLEX PROCEEDINGS AND A TWISTING PLOT KEEPS THE SUSPENSE INTACT UNTIL THE END 9308090018 930809 CONGRESS EXTENDS PROGRAM FOR DUTYFREE IMPORTS WASHINGTON CONGRESS REINSTATED A PROGRAM THAT ALLOWS DUTYFREE IMPORTS FROM CERTAIN COUNTRIES THE PROGRAM CALLED THE GENERALIZED SYSTEM OF PREFERENCES EXPIRED JULY 4 AND WHEN THE SENATE FAILED TO INCLUDE AN EXTENSION IN ITS BUDGET BILL SOME IMPORTERS BEGAN PREPARING TO RAISE PRICES BUT THE PROGRAM WAS RESUSCITATED DURING HOUSE AND SENATE NEGOTIATIONS AND WOUND UP IN THE COMPROMISE BUDGET LEGISLATION PASSED LAST WEEK THE EXTENSION RUNS UNTIL SEPT 30 1994 THE EXTENSION IS RETROACTIVE TO THE PROGRAM'S LAPSE LAST MONTH SO IMPORTERS CAN GET REFUNDS FOR TARIFFS THEY PAID IN THE INTERIM THE NEW LEGISLATION ADDS THE FORMER SOVIET REPUBLICS TO THE LIST OF COUNTRIES ELIGIBLE FOR DUTYFREE STATUS MOST OF THOSE ELIGIBLE ARE DEVELOPING COUNTRIES SUCH AS INDIA MEXICO THAILAND AND BRAZIL 9308090017 930809 BUSINESS BRIEF TURNER CORP CONSTRUCTION COMPANY POSTS 28 DROP IN 2NDPERIOD NET TURNER CORP SAID WEST COAST CONSTRUCTION WOES CONTINUED TO HAMPER ITS BOTTOM LINE AS NET INCOME DROPPED 28 IN THE SECOND QUARTER THE NEW YORK CONSTRUCTION COMPANY REPORTED NET OF 909000 OR NINE CENTS A SHARE DOWN FROM 13 MILLION OR 20 CENTS A SHARE A YEAR EARLIER SALES DROPPED 45 TO 149 MILLION TURNER SAID IT EXPECTS SALES TO IMPROVE IN THE SECOND HALF SO THAT ANNUAL RESULTS WILL APPROXIMATE THOSE OF LAST YEAR IN 1992 TURNER POSTED NET OF 4 MILLION OR 50 CENTS A SHARE ON SALES OF 671 MILLION 9308090016 930809 POLITICS & POLICY SOME ADVOCATES OF ENTERPRISEZONE CONCEPT FIND LITTLE TO CHEER IN DEMOCRATS' LEGISLATION BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FOR MORE THAN A DECADE JACK KEMP WAS THE NATION'S MOST RELENTLESS CHAMPION OF ENTERPRISE ZONES TO HELP DISTRESSED INNER CITIES TO NO AVAIL BUT NOW THAT THE DEMOCRATS FINALLY HAVE ENACTED THE IDEA ALL HE CAN MUSTER IS A BRONX CHEER IT'S A TRAGEDY IT'S A HOAX SAYS MR KEMP A FORMER REPUBLICAN CONGRESSMAN AND HOUSING SECRETARY IT'S NOT EMPOWERMENT OR ENTERPRISE AND ANYONE WHO VOTED FOR IT SHOULD BE ASHAMED IT IS IRONIC THAT YOU HAD THE DEMOCRATS PUSHING FORWARD ON THIS AND EVERY REPUBLICAN VOTING AGAINST IT SAYS STUART BUTLER DIRECTOR OF DOMESTIC POLICY STUDIES AT THE HERITAGE FOUNDATION A CONSERVATIVE THINK TANK BUT THE BASIC ELEMENTS OF THEIR PLAN ARE UPSIDE DOWN OR JUST WRONG THE LEGISLATION APPROVED BY CONGRESS AS PART OF ITS DEFICITREDUCTION PACKAGE IS SUBSTANTIALLY DIFFERENT FROM SOME EARLIER VERSIONS PUSHED BY MR KEMP HIS CONSERVATIVE ALLIES AND SOME DEMOCRATS IN AN EFFORT TO COMBAT HIGH UNEMPLOYMENT HIGH CRIME AND WELFARE DEPENDENCY AND SPUR AN URBAN ECONOMIC RENEWAL RATHER THAN BESTOWING TAX BREAKS ON HUNDREDS OF AREAS FROM EAST HARLEM TO EAST LOS ANGELES AS MR KEMP LIKES TO SAY THE LEGISLATION WILL GIVE THE LION'S SHARE OF 35 BILLION IN TAX INCENTIVES AND GRANTS TO JUST SIX CITIES AND THREE RURAL AREAS FUNNELING MOST OF THE BENEFITS TO A HANDFUL OF CITIES IS SURE TO MAKE THE SELECTION PROCESS A BLOODY ONE CRITICS SAY AND RATHER THAN PROVIDING THE SWEEPING CAPITALGAINS TAX RELIEF THAT MR KEMP IS PUSHING THE MAIN BREAK IS WAGE CREDITS FOR BUSINESSES OPERATING IN THE ZONES I'M ALL FOR LOWERING THE COST OF LABOR MR KEMP SAYS BUT THERE'S NOTHING IN HERE THAT DOES ANYTHING TO ENCOURAGE CAPITAL TO FLOW INTO THE AREAS OF THE COUNTRY THAT HAVE BEEN REDLINED DISCRIMINATED AGAINST IN THE GRANTING OF CREDIT BUT SUPPORTERS ARGUE THAT THE LEGISLATION IS A CRUCIAL FIRST STEP IN CRAFTING AN URBAN POLICY FOR A COUNTRY THAT HAS LARGELY IGNORED FESTERING INNERCITY PROBLEMS EVEN AS URBAN VIOLENCE AND DECAY HAS WORSENED OVER THE PAST DECADE WASHINGTON HAS DONE LITTLE TO BREAK THE CYCLE OF DESPAIR AND DESTRUCTION AFTER LAST YEAR'S RIOTS IN LOS ANGELES THENPRESIDENT BUSH VETOED A BILL CREATING ENTERPRISE ZONES BECAUSE IT ALSO RAISED TAXES NOW PRESIDENT CLINTON HAS SEEN HIS MODEST URBAN AGENDA FOUNDER AMID BUDGET AND MANAGEMENT HEADACHES AGAINST THIS BACKDROP SUPPORTERS SAY THAT ENTERPRISE ZONES THOUGH STILL LARGELY UNPROVEN AND CONTROVERSIAL ESTABLISH AN IMPORTANT PRECEDENT THAT DOWNANDOUT COMMUNITIES SHOULD BE HELPED INTO THE ECONOMIC MAINSTREAM THIS IS A SIGNIFICANT PILOT PROGRAM THAT ONCE PROVEN SUCCESSFUL WE HOPE WILL BE EXPANDED AND REPLICATED SAYS JERRY ABRAMSON MAYOR OF LOUISVILLE AND PRESIDENT OF THE US CONFERENCE OF MAYORS AND SEN DONALD RIEGLE A MICHIGAN DEMOCRAT SAYS THE LEGISLATION WAS AN IMPORTANT STEP TO ADD DIRECT FUNDING FOR SOCIAL PROBLEMS SUGGESTING THAT THE KEMP APPROACH RELIED TOO MUCH ON TAX BREAKS DISTRESSED COMMUNITIES CAN'T BEGIN TO TURN THEMSELVES AROUND WHILE MOST OF THE WORK FORCE LIVES IN DILAPIDATED HOUSING HAS INADEQUATE ACCESS TO CHILD CARE AND INADEQUATE EDUCATION SEN RIEGLE SAYS OTHER CONGRESSIONAL PROPONENTS HOWEVER ARE QUICK TO ACKNOWLEDGE THAT THE LEGISLATION IS FAR FROM PERFECT REFERRING TO ITS LIMITED SCOPE DEMOCRATIC REP CHARLES RANGEL OF NEW YORK SAYS HOW CAN I FEEL SO GREAT STILL HE'S HOPING THAT THE ZONES WILL BE SUCCESSFUL IN SHOWING IN A DRAMATIC WAY WHAT YOU CAN DO WITH PEOPLE WHO SOCIETY HAS GIVEN UP ON IF YOU GIVE THEM SOME ATTENTION AND ECONOMIC OPPORTUNITIES THE LEGISLATION CREATES NINE SUPER ZONES CALLED EMPOWERMENT ZONES FIVE IN BIG CITIES ONE IN A MEDIUMSIZE CITY AND THREE IN RURAL AREAS TO BE SELECTED BY THE SECRETARIES OF HOUSING AND URBAN AFFAIRS AND AGRICULTURE THE AREAS WILL SHARE FEDERAL LARGESS TOTALING 25 BILLION IN TAX INCENTIVES MOSTLY WAGE CREDITS TO ENCOURAGE THE HIRING OF ZONE RESIDENTS AND 720 MILLION IN SOCIALSERVICE GRANTS AND THEY'LL GET AUTHORITY TO USE TAXEXEMPT BONDS TO HELP FINANCE A VARIETY OF BUSINESSES CURRENTLY BONDS OF THIS KIND CAN BE USED ONLY FOR MANUFACTURING FACILITIES BUSINESSES IN THE ZONES WILL ALSO BE ALLOWED TO DEDUCT MORE OF THE COST OF CERTAIN BUSINESS PROPERTY IN THE YEAR IT IS PURCHASED AN ADDITIONAL 95 AREAS 65 URBAN 30 RURAL WILL BE SELECTED AS ENTERPRISE COMMUNITIES ELIGIBLE FOR THE SPECIAL BOND RULES PLUS 280 MILLION IN GRANTS THE ADMINISTRATION WAS DETERMINED TO STEER THE BULK OF THE BENEFITS TO A SMALL NUMBER OF CITIES IN AN EFFORT TO REALLY TEST THE PROGRAM BUT FROM THE START THAT ALSO HAS BEEN ITS BIGGEST POLITICAL VULNERABILITY THERE ARE TOO FEW REAL ZONES AND TOO MANY QUASIZONES SAYS SEN JOSEPH LIEBERMAN A CONNECTICUT DEMOCRAT WHO IS A LONGTIME SUPPORTER OF THE ENTERPRISEZONE CONCEPT HE URGED HIS COLLEAGUES TO APPROVE 50 TO 75 ZONES THAT WOULD GET EXTENSIVE BENEFITS BUT NOT WHAT HE CONSIDERS THE EXCESSIVE GOODIES THAT NOW ARE TARGETED FOR THE SUPER ZONES HE IS CONCERNED THAT EVEN IF THE SUBSIDIES FOR THE EMPOWERMENT ZONES ARE EFFECTIVE THEY WILL BE TOO COSTLY TO REPLICATE ON A BROAD SCALE MANY CITY REPRESENTATIVES WHILE SUPPORTING THE LEGISLATION AS A FIRST STEP ARE SIMPLY DISMAYED THAT THEY WILL BE LEFT OUT CITIES WILL BE CHOSEN ON A COMPETITIVE BASIS AFTER SUBMITTING APPLICATIONS BUT NEW YORK CHICAGO AND LOS ANGELES ALREADY ARE CONSIDERED SHOOINS THAT LEAVES THE REST OF THE COUNTRY TO FIGHT OVER THE REMAINING THREE SPOTS SAYS JEFFREY FINKLE EXECUTIVE DIRECTOR OF THE NATIONAL COUNCIL FOR URBAN ECONOMIC DEVELOPMENT WHICH REPRESENTS LOCAL ECONOMIC DEVELOPMENT OFFICIALS THAT'S TERRIBLY UNFAIR TO GARY IND YOUNGSTOWN OHIO AND PITTSBURGH YOU ARE CREATING A NEW ENTITLEMENT FOR A SELECT NUMBER OF CITIES FRANK SHAFROTH DIRECTOR OF POLICY AND FEDERAL RELATIONS FOR THE NATIONAL LEAGUE OF CITIES WHICH HAS MANY SMALL AND MEDIUMSIZE CITIES AMONG ITS MEMBERS SAYS THE NINE ZONES ARE IN FAT CITY WHILE THE 95 OTHER ONES GET S&H GREEN STAMPS BUT SUPPORTERS OF THE APPROACH SAY IT'S WISE TO PROVIDE EXTENSIVE BENEFITS TO A LIMITED NUMBER OF AREAS RATHER THAN SPREADING PALTRY BENEFITS ON A MASSIVE SCALE ONE OF THE BIGGEST POLICY DEBATES INVOLVING ENTERPRISE ZONES OVER THE YEARS HAS BEEN NOT ONLY WHETHER TAX INCENTIVES WILL WORK BUT WHAT KIND OF INCENTIVES TO TRY FOR MR KEMP THE CENTERPIECE OF ANY ENTERPRISE ZONE PROPOSAL SHOULD BE THE ELIMINATION OF THE CAPITAL GAINS TAX ON ANYONE WHO WORKS SAVES OR INVESTS IN THE ZONES THIS HE SAYS WOULD GREATLY INCREASE THE SEED CAPITAL FLOWING INTO AMERICA'S LOWINCOME COMMUNITIES AND REWARD ENTREPRENEURS BUT EUGENE STEUERLE A SENIOR FELLOW AT THE URBAN INSTITUTE SAYS CAPITAL GAINS RELIEF DOESN'T MAKE A LOT OF SENSE FOR ONE THING HE SAYS IT'S HARD TO CONTROL ARE YOUR GAINS RELATED TO ACTIVITY IN THAT AREA OR RELATED TO SALES IN OTHER PLACES MR STEUERLE HAS A MORE BASIC CONCERN ABOUT ALL ENTERPRISEZONE PROPOSALS THE CENTRAL DIFFICULTY IS THAT BY THEIR VERY NATURE THEY DISCRIMINATE ON THE BASIS OF GEOGRAPHIC LOCATION HE SAYS SO YOU ARE GIVING AWAY TAX CREDITS TO MCDONALD'S ON ONE SIDE OF BROADWAY BUT NOT TO BURGER KING ON THE OTHER SIDE YOU HAVE DISCRIMINATION AGAINST WORKERS IN THOSE OTHER AREAS AND YOU CAN'T DO IT FOR LONG WITHOUT CREATING ANGER AND RESENTMENT HERE ARE THE MAIN ELEMENTS FOR THE EMPOWERMENT AND ENTERPRISE ZONES CREATED UNDER THE BUDGET LEGISLATION NINE FIVE BIG CITIES ONE SMALLER CITY AND THREE RURAL AREAS A CHANGE IN BOND RULES TO ALLOW TAXEXEMPT BOND FINANCING TO BE USED FOR NONMANUFACTURING BUSINESSES SAME CHANGE IN BOND RULES AS ABOVE 9308090015 930809 FINANCING BUSINESS CONTINENTAL CABLEVISION INC CONTINENTAL CABLEVISION INC BOSTON SAID IT WILL ISSUE 1 BILLION IN SENIOR UNSECURED NOTES AND DEBENTURES TO GO TOWARD DEBT REPAYMENT THE NATION'S THIRDLARGEST CABLESYSTEM OPERATOR INITIALLY OFFERED 500 MILLION IN SENIOR NOTES AND DEBENTURES BUT THE AMOUNT WAS INCREASED AS A RESULT OF INVESTOR DEMAND THE COMPANY SAID PROCEEDS WILL BE USED MAINLY TO PAY BACK SHORTERMATURITY BANK DEBTS MORGAN STANLEY & CO WAS THE LEAD UNDERWRITER FOR THE OFFERING 9308090014 930809 WHO'S NEWS KINARK CORP KINARK CORP TULSA OKLA RICHARD E BAIERLEIN 49 YEARS OLD WAS NAMED CHAIRMAN OF THIS CHEMICAL CONCERN SUCCEEDING PAUL R CHASTAIN WHO WILL REMAIN AT KINARK AS PRESIDENT AND CHIEF EXECUTIVE OFFICER MR BAIERLEIN IS PRESIDENT OF NORTHBRIDGE HOLDINGS INC A BEDMINISTER NJ COMPANY THAT HAD FOUGHT FOR CONTROL OF KINARK MR BAIERLEIN AND ANOTHER NORTHBRIDGE EXECUTIVE WON SEATS ON THE KINARK BOARD IN MARCH MR CHASTAIN THE FORMER CHAIRMAN AND CURRENT CHIEF EXECUTIVE ASSUMES THE JOB OF PRESIDENT FROM HARRY D JONES WHO RETIRED FROM THE COMPANY LAST MONTH 9308090013 930809 CLINTON'S ECONOMIC PACKAGE HEALTHCARE REFORM MUST UNDO REDUCTIONS IN MEDICARE SPENDING BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S HEALTH BILL WILL NOW TRY TO UNDO WHAT HIS BUDGET BILL HAS HELPED TO DO TO WIN PASSAGE OF HIS DEFICITREDUCTION PACKAGE THE PRESIDENT AGREED TO 56 BILLION OF CUTS IN PROJECTED MEDICARE SPENDING OVER THE NEXT FIVE YEARS THAT'S THE LARGEST MEDICARE REDUCTION IN HISTORY AND IT COMES ON TOP OF YEAR AFTER YEAR OF PARING THE FEDERAL HEALTH PROGRAM FOR THE ELDERLY TO WRING SAVINGS FROM THE FEDERAL BUDGET BUT AS HE BEGINS TO TURN HIS ATTENTION BACK TO THE BROAD HEALTHCARE OVERHAUL HE HAS PROMISED TO PROPOSE THIS FALL MR CLINTON WILL FIND THAT THE LATEST ROUND OF MEDICARE CUTS ONLY EXACERBATES THE TREMENDOUS COST AND ACCESS PROBLEM THAT HIS HEALTH BILL AIMS TO FIX FOR AS THEY HAVE IN THE PAST DOCTORS AND HOSPITALS SAY THEY WILL SIMPLY TRY TO MAKE UP THE LOWER MEDICARE RATES BY RAISING FEES THEY CHARGE PRIVATELY PAYING PATIENTS IT WILL PRODUCE A DIRECT COST SHIFT TO ANYONE WHO APPEARS TO HAVE THE MONEY TO PAY FOR IT PREDICTS CARSON BEADLE MANAGING DIRECTOR OF WILLIAM M MERCER INC A BENEFITS CONSULTING FIRM THAT AND COST SHIFTS TO MAKE UP FOR THE CHARITY CARE GIVEN UNINSURED PATIENTS IN TURN LEADS TO HIGHER HEALTHINSURANCE PREMIUMS WHICH FORCE MORE EMPLOYERS TO SCALE BACK THEIR HEALTH PLANS OR DROP THEM LOOK AT THE DIFFERENCE IN WHAT DANIEL JOHNSON JR'S PATIENTS ALREADY PAY FOR A MAGNETIC RESONANCE IMAGING BRAIN SCAN DR JOHNSON IS A DIAGNOSTIC RADIOLOGIST WHO OWNS AN OUTPATIENT IMAGING FACILITY OUTSIDE NEW ORLEANS BASED ON HIS EXPENSES HE FIGURES HE SHOULD IDEALLY CHARGE EACH PATIENT 610 TO PRODUCE AND READ AN MRI BRAIN SCAN BUT NO ONE PAYS THAT AMOUNT DR JOHNSON CHARGES MEDICARE PATIENTS 44067 WHICH IS THE FEE MEDICARE SETS FOR THE SERVICE OF THAT MEDICARE PAYS 80 OR 35254 AND THE PATIENT PAYS THE REMAINING 20 OR 8813 DR JOHNSON SAYS TO MAKE UP FOR THE MONEY HE LOSES ON MEDICARE DR JOHNSON SAYS HE GENERALLY CHARGES PATIENTS WITH PRIVATE INSURANCE PLANS THOSE POLICIES THAT REIMBURSE FOR CUSTOMARY AND REASONABLE CHARGES 775 FOR THE SAME MRI BRAIN SCAN SOMETHING HAS GOT TO GIVE WHEN THE AMOUNT OF PAYMENT FOR SERVICES BECOMES LESS THAN THE COST OF DELIVERING THOSE SERVICES SAYS DR JOHNSON WHO IS THE SPEAKER OF THE AMERICAN MEDICAL ASSOCIATION'S HOUSE OF DELEGATES THE PHYSICIAN ORGANIZATION'S POLICYMAKING BODY IT CERTAINLY WILL BE AFTER THESE ADDITIONAL RESTRICTIONS EITHER PHYSICIANS AND HOSPITALS ARE GOING TO NO LONGER BE ABLE TO PROVIDE SERVICES TO MEDICARE BENEFICIARIES CURTAILING THEIR ACCESS TO NEEDED CARE OR THE TRUE COST OF PROVIDING THOSE SERVICES IS GOING TO BE FURTHER SHIFTED OVER TO THE PRIVATE SECTOR BUT AS DR JOHNSON'S EXPERIENCE SHOWS MORE AND MORE PRIVATE PAYERS ARE CUTTING THEIR OWN DEALS LEAVING THE BRUNT OF THE COST SHIFTS TO SMALL EMPLOYERS THE SELFEMPLOYED AND OTHERS WITHOUT BARGAINING POWER IT'S BECOME INCREASINGLY DIFFICULT TO FIND ANYONE LEFT TO COSTSHIFT TO SAYS FRED GRAEFE A LAWYER AND LOBBYIST WHO REPRESENTS A NUMBER OF HEALTHCARE CLIENTS THE BIG EMPLOYERS AND THOSE EXERCISING POWER IN THE MARKETPLACE THROUGH NETWORKS WILL PROBABLY BE ABLE TO SOME EXTENT TO DEFEND THEMSELVES AGAINST COST SHIFTING SAYS CHIP KAHN EXECUTIVE VICE PRESIDENT OF THE HEALTH INSURANCE ASSOCIATION OF AMERICA COSTSHIFTING ISN'T THE ONLY HEALTHCARE HEADACHE BROUGHT ON BY THE NEW MEDICARE REDUCTIONS PRESIDENT CLINTON AGREED TO REDUCTIONS LARGELY TO STAVE OFF THE NEED FOR MORE TAXES IN THE BUDGET BILL BUT THAT ROBS MR CLINTON'S HEALTH ADVISERS OF TENS OF BILLIONS OF DOLLARS THEY COULD HAVE PUT TOWARD EXPANDING ACCESS TO HEALTH CARE CONSEQUENTLY IT MAY LEAVE THE PRESIDENT NO CHOICE BUT TO PROPOSE ANOTHER ROUND OF NEW TAXES TO PAY FOR HIS HEALTH PLAN 9308090012 930809 FINANCING BUSINESS NYNEX CORP NYNEX CORP'S NEW YORK TELEPHONE UNIT ANNOUNCED A 250 MILLION PUBLIC OFFERING WHICH THE REGIONAL PHONE COMPANY WILL USE TO REDEEM OTHER DEBT OUTSTANDING THE 32YEAR DEBENTURES ARE DUE AUG 15 2025 BUT MAY BE CALLED AUG 15 2003 THE PROCEEDS WILL GO TOWARD 50 MILLION OF THE COMPANY'S 40YEAR DEBENTURES DUE JUNE 15 2018 AND 200 MILLION OF PRINCIPAL REMAINING ON 40YEAR DEBENTURES DUE JUNE 15 2016 GOLDMAN SACHS & CO IS THE UNDERWRITER 9308090010 930809 INTERNATIONAL JAPAN REFORMERS SEIZE CONTROL OF PARLIAMENT HOSOKAWA'S CABINET CHOICES APPEAR TO EMPHASIZE CONTINUITY OVER CHANGE BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S POLITICAL REFORMERS FINALLY SEIZED CONTROL OF PARLIAMENT FROM AN OBSTRUCTIONIST LIBERAL DEMOCRATIC PARTY AND NOW BEGIN THE MORE DIFFICULT TASK OF GOVERNING MORIHIRO HOSOKAWA WAS ELECTED PRIME MINISTER LATE FRIDAY AFTER THE LDP STAGED A RAUCOUS PROTEST OVER PARLIAMENTARY PROCEDURE HE ANNOUNCED HIS NEW CABINET MONDAY MORNING JAPAN'S FIRST NONLDP GOVERNMENT IN 38 YEARS IS SCHEDULED TO BE INAUGURATED LATER IN THE DAY MR HOSOKAWA'S CABINET SEEMS TO EMPHASIZE CONTINUITY OVER CHANGE THE MOST SENSITIVE AND POWERFUL POSTS WERE GIVEN TO MEMBERS OF THE JAPAN RENEWAL PARTY A GROUP OF POLITICIANS WHO DEFECTED FROM THE LDP JUST TWO MONTHS AGO RENEWAL PARTY HEAD TSUTOMU HATA BECOMES DEPUTY PRIME MINISTER AND FOREIGN MINISTER RENEWAL PARTY MEMBER HIROHISA FUJII WAS APPOINTED FINANCE MINISTER AND FELLOW PARTISAN HIROSHI KUMAGAI WAS NAMED MINISTER OF INTERNATIONAL TRADE AND INDUSTRY THE PARTY ALSO WON THE DEFENSE AND AGRICULTURE POSTS THE SEVENPARTY COALITION HAS PROMISED TO MAINTAIN JAPAN'S BASIC ECONOMIC AND DIPLOMATIC POLICIES MR HOSOKAWA DID HOWEVER MAKE SOME INNOVATIONS HE APPOINTED NONPOLITICIANS AS JUSTICE AND EDUCATION MINISTERS HE CREATED A CABINET POST IN CHARGE OF POLITICAL REFORM HE APPOINTED SOCIALISTS TO HEAD THE CONSTRUCTION AND TRANSPORTATION MINISTRIES TWO BUREAUCRACIES THE LDP OFTEN USED TO FOSTER CORRUPT TIES WITH THOSE INDUSTRIES WITHIN THE COALITION MR HOSOKAWA HEADS THE SMALL JAPAN NEW PARTY WHICH HE FORMED A LITTLE MORE THAN A YEAR AGO THE NEW GOVERNMENT PROMISES TO BREATHE LIFE INTO JAPAN'S MORIBUND CABINET AND LEGISLATURE THOSE INSTITUTIONS WERE LONG AGO RELEGATED TO THE ROLE OF RATIFYING DEALS CUT IN PRIVATE BY LDP BOSSES THE WEAK OPPOSITION PARTIES AND THE BUREAUCRACY MR HOSOKAWA AND HIS ALLIES SAY THEY WANT MORE OPEN DEBATE AND VOTING AN EARLY TEST OF THEIR INTENTIONS WILL COME WHEN MR HOSOKAWA TRIES TO COMPILE THE ANNUAL BUDGET USUALLY SPECIAL LDP COMMITTEES WOULD MEET AT THIS TIME OF YEAR WITH BUREAUCRATS TO START CRAFTING THE SPENDING PACKAGE THOSE PROPOSALS WOULD FILTER UP THROUGH THE LDP AND THE MINISTRIES AND EVENTUALLY GET PRESENTED TO THE PARLIAMENT AS A DONE DEAL THE RULING COALITION SAYS IT WANTS TO CHANGE ALL THAT WE CAN'T RELY ON THE EXISTING PROCESS ONE TRADE MINISTRY OFFICIAL COMPLAINED IT HAS BEEN VERY RARE FOR THE BUDGET TO BE AMENDED IN PARLIAMENT HE ADDED THAT'S GOING TO HAPPEN A LOT MORE OFTEN NOW BUT THE BUREAUCRATS SENSING A THREAT TO THEIR POWER ARE LIKELY TO RESIST MR HOSOKAWA'S INITIATIVES I DOUBT HOW WELL MR HOSOKAWA CAN TAKE ON THE BUDGETWRITING FINANCE MINISTRY SAID YOSHIRO MORI A TOP LDP OFFICIAL SPEAKING ON A POLITICAL TALK SHOW SUNDAY THE LDP TOO HAS MADE CLEAR THAT IT WILL OBSTRUCT MR HOSOKAWA'S GOVERNMENT AT EVERY TURN THE OLD RULING PARTY WHICH REMAINS THE LARGEST INDEPENDENT BLOC IN PARLIAMENT MANAGED TO STALL MR HOSOKAWA'S ROUTINE SELECTION FROM THURSDAY AFTERNOON TO LATE FRIDAY NIGHT THROUGH SOME PETTY HAGGLING THEN DURING THE PRIMEMINISTER VOTE A CLERK ACCIDENTALLY READ THE ROLL CALL OUT OF ORDER LDP MEMBERS LEAPED TO THEIR FEET WAGGING THEIR FINGERS AND SHOUTING A NEW VOTE HAD TO BE CALLED DELAYING THE TRANSFER OF POWER FOR A FEW HOURS THE PARLIAMENT ALSO ELECTED TAKAKO DOI THE FIERY FORMER LEADER OF THE SOCIALIST PARTY AS SPEAKER OF THE LOWER HOUSE SHE IS THE FIRST WOMAN TO HOLD THAT JOB THE CURRENT SESSION OF PARLIAMENT IS SCHEDULED TO END SATURDAY MR HOSOKAWA HAS SAID HE WANTS TO CALL A SPECIAL SESSION NEXT MONTH TO PASS LEGISLATION TO REFORM THE ELECTORAL SYSTEM CONSIDERED A MAJOR CAUSE OF JAPAN'S ENDEMIC POLITICAL CORRUPTION MR HOSOKAWA ALSO TOLD REPORTERS OVER THE WEEKEND HE HOPES TO ATTEND A UNITED NATIONS SESSION IN NEW YORK IN SEPTEMBER AND POSSIBLY TO MEET THEN WITH PRESIDENT CLINTON 9308090009 930809 TECHNOLOGY & HEALTH SUN MICROSYSTEMS CONTRACT WITH US IS SUSPENDED AFTER RIVALS COMPLAIN BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL MOUNTAIN VIEW CALIF SUN MICROSYSTEMS INC SAID THE NATIONAL SECURITY AGENCY SUSPENDED A CONTRACT FOR A CLASSIFIED WORKSTATION VALUED AT AS MUCH AS 200 MILLION AFTER COMPETITORS COMPLAINED THAT SUN MISREPRESENTED THE MACHINE'S PERFORMANCE TO WIN THE BID WE WERE NOTIFIED BY THE AGENCY LAST WEEK THAT THEY WOULD STOP FURTHER ORDERING ON THE CONTRACT SAID JOHN LEAHY GROUP MANAGER FOR STRATEGIC BUSINESS DEVELOPMENT FOR SUN'S FEDERAL DIVISION NOTHING WAS DONE THAT WAS IMPROPER OR ILLEGAL MR LEAHY SAID HE SAID SUN EXPECTS TO COMPETE IF NSA PUTS THE CONTRACT UP FOR REBIDDING SUN DIDN'T PUBLICLY DISCLOSE NSA'S DECISION UNTIL IT WAS REPORTED BY THE TRADE PUBLICATION FEDERAL COMPUTER WEEK IN AN ARTICLE SCHEDULED TO APPEAR TODAY OFFICIALS OF THE NSA WHICH CONDUCTS SOME OF THE NATION'S MOST SECRET ELECTRONIC INTELLIGENCE WORK COULDN'T BE REACHED FOR COMMENT FEDERAL COMPUTER WEEK SAID THE AGENCY DECLINED TO COMMENT ON SUN'S CONTRACT IN AN INTERVIEW MR LEAHY SAID THE NSA ORDER WAS POTENTIALLY ONE OF OUR LARGEST GOVERNMENT CONTRACTS THE CONTRACT FOR A CLASSIFIED VERSION OF SUN'S HIGHPERFORMANCE WORKSTATION II KNOWN AS THE SPARCSTATION 10 MODEL 20 WOULD INITIALLY HAVE BEEN VALUED AT ABOUT 75 MILLION WITH LIKELY GROWTH TO AS MUCH AS 200 MILLION OVER THE CONTRACT'S FIVEYEAR LIFESPAN HE SAID NSA'S DECISION COULD SIGNAL PROBLEMS FOR SUN'S NEARHAMMERLOCK ON THE AGENCY'S LUCRATIVE UNIX WORKSTATION MARKET SUN CURRENTLY SUPPLIES NEARLY 80 OF NSA'S UNIX WORKSTATIONS MR LEAHY SAID CANCELLATION OF THE SPARCSTATION CONTRACT DOESN'T AFFECT THE COMPANY'S OTHER INTELLIGENCEAGENCY WORK WE DIDN'T WALK OFF A CLIFF HERE HE SAID JUST BECAUSE NSA STOPPED THIS CONTRACT DOESN'T MEAN SUN'S NSA COMES TO ZERO AT LEAST THREE RIVAL BIDDERS LODGED COMPLAINTS ABOUT SUN'S BIDDING PROCEDURES AFTER NSA AWARDED THE CONTRACT IN JUNE THE THREE HEWLETTPACKARD CO SILICON GRAPHICS INC AND INTERNATIONAL BUSINESS MACHINES CORP SAID SUN UNFAIRLY MANIPULATED DATA USED BY THE NSA TO AWARD ITS WORKSTATION CONTRACT ANDREW DANVER HEWLETTPACKARD'S FEDERAL COMPUTER OPERATIONS MARKETING MANAGER SAID HEWLETT WROTE A LETTER OF COMPLAINT TO THE NSA AFTER MATCHING SUN'S FIGURES AGAINST HIS OWN COMPANY'S BID WE WERE VERY SURPRISED AT THE DIFFERENCE BETWEEN OUR SCORE AND THE PERCEIVED WINNING SCORE HE SAID A SILICON GRAPHICS REPRESENTATIVE DECLINED TO COMMENT SAYING NSA HAD REQUESTED THAT BIDDERS REFRAIN FROM TALKING ABOUT THE CONTRACT IBM OFFICIALS TOLD FEDERAL COMPUTER WEEK THAT THE COMPANY WAS PLEASED WITH NSA'S ACTION ON ITS PROTEST AND PLEASED THAT WE WILL HAVE ANOTHER OPPORTUNITY TO COMPETE ON A REVISED BID ACCORDING TO INDUSTRY EXPERTS THE DISPUTE OVER SUN'S BID FOCUSED ON TESTS DONE ON COMPETING UNIX WORKSTATIONS BY AIM TECHNOLOGY INC OF SANTA CLARA CALIF AIM WAS HIRED BY NSA TO JUDGE THE WORKSTATION COMPETITION AIM OFFICIALS COULDN'T BE REACHED FOR COMMENT EXPERTS SAID AIM TYPICALLY CONDUCTS WHAT IS KNOWN AS BENCHMARK TESTING OF THE PERFORMANCE OF VARIOUS WORKSTATION SUBSYSTEMS USING ITS OWN UNIX PROGRAM IN THE CASE OF NSA'S CONTRACT THE AGENCY PROVIDED SUN AND OTHER BIDDERS WITH SPECIFICATIONS AND THE PROGRAM DEEMED BY AIM TO MOST CLOSELY MATCH NSA'S PERFORMANCE CRITERIA WAS DECLARED THE WINNER WITH EXTRA POINTS GIVEN FOR SUCH ELEMENTS AS UNUSUAL PROGRAM SPEED ANDREW ALLISON A CARMEL CALIFBASED BENCHMARKING EXPERT SAID PERFORMANCE RESULTS CAN BE MANIPULATED BY EMPHASIZING SOME SUBSYSTEMS THAT ARE ESPECIALLY STRONG OVER OTHERS DURING TESTING THAT COULD MAKE THE ENTIRE SYSTEM'S RESULTS LOOK BETTER HE SAID MR ALLISON SAID HE WASN'T FAMILIAR WITH THE NSA TESTS BUT HE SAID IF SUCH OVERLOADING OCCURRED IT WOULD HAVE TO BE DONE ON PURPOSE THE MOST LIKELY SCENERIO WAS THAT NSA WAS NOT SUFFICIENTLY PUNCTILIOUS IN DEFINING ITS TEST CONDITIONS AND THAT ALLOWED SUN TO BE CREATIVE HE SAID SUN'S MR LEAHY DENIED ANY WRONGDOING THE ISSUE WAS HOW OUR SYSTEM WAS CONFIGURED AND WHETHER THAT CONFIGURATION WAS PERMITTED HE SAID WE BELIEVE IT WAS BUT NSA OBVIOUSLY DIDN'T AGREE 9308090008 930809 INTERNATIONAL WEAKER MARK STALLED GERMAN RECOVERY EXPECTED IN WAKE OF CURRENCY CRISIS BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON AT A TIME WHEN THE MARK IS SHOWING SEEMINGLY UNSTOPPABLE STRENGTH ANALYSTS ARE CONTEMPLATING THE EVENTUAL DECLINE OF THE GERMAN CURRENCY THE LIKELIHOOD OF A LOWER MARK IN RELATION TO THE US DOLLAR AND MOST MAJOR EUROPEAN CURRENCIES WITHIN SIX TO EIGHT MONTHS SHOWS THE DOWNSIDE FOR GERMANY IN THE CURRENCY CRISIS WHICH THE COUNTRY SPARKED WITH ITS RELUCTANCE TO CUT INTEREST RATES IN THE SHORT TERM THE BUNDESBANK'S STINGINESS ON INTERESTRATE CUTS WILL SUPPORT THE MARK BUT IT ALSO WILL PREVENT THE GERMAN ECONOMY FROM MAKING A QUICK COMEBACK FROM RECESSION SPELLING LONGTERM TROUBLE FOR THE MARK BY THIS TIME NEXT YEAR THE US ECONOMY AS MEASURED BY THE GROSS NATIONAL PRODUCT IS EXPECTED TO BE TICKING ALONG AT ABOUT A 3 GROWTH RATE WHILE GERMANY'S ECONOMY WILL BE LUCKY TO SHOW ANY INCREASE ANALYSTS SAY THE CHANCES FOR ECONOMIC RECOVERY AMONG GERMANY'S WESTERN EUROPEAN NEIGHBORS HAVE VASTLY IMPROVED FOLLOWING LAST WEEK'S DECISION TO MAKE THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM MORE FLEXIBLE BY WIDENING THE BANDS WITHIN WHICH CURRENCIES CAN FLUCTUATE FROM 225 TO 15 THE WIDELY ANTICIPATED WEAKNESS OVER THE NEXT SIX MONTHS OF THE FRENCH FRANC THE ITALIAN LIRA THE SPANISH PESETA THE BENELUX CURRENCIES AND THE DANISH KRONE IS LIKELY TO RESULT IN THOSE COUNTRIES BEING ABLE TO USE EXPORTS TO PULL OUT OF RECESSION AS A CURRENCY DECREASES IN VALUE THE PRICE OF ITS GOODS SOLD ABROAD DROPS ANOTHER BENEFIT FOR THOSE COUNTRIES WILL BE THE INTERESTRATE CUTS THAT ARE EXPECTED TO STEM FROM THE LOOSENING OF THE ERM THUS LOWERING BORROWING COSTS FOR COMPANIES IN THOSE COUNTRIES TO BE SURE THE IMMEDIATE RESULT OF THE ERM'S VIRTUAL SUSPENSION HASN'T RESULTED IN SIGNIFICANT INTERESTRATE CUTS IN THE CORE OF EUROPE GERMANY FRANCE BELGIUM THE NETHERLANDS AND DENMARK FRANCE DESPITE ITS 116 JOBLESS RATE RESISTED LOWERING RATES LAST WEEK IN A BID TO PROTECT THE FRANC'S VALUE HOWEVER MANY ECONOMISTS SAY THE GOVERNMENT'S POSTURE ISN'T SUSTAINABLE FOR MORE THAN THE NEXT FEW WEEKS AND THAT IT IS LARGELY MOTIVATED BY POLITICAL PRIDE AND THE NEED TO REPLACE DEPLETED CENTRAL BANK CURRENCY RESERVES INDEED MOST ANALYSTS THINK FRANCE AND THE OTHERS WITH THE EXCEPTION OF THE NETHERLANDS WON'T BE ABLE MAINTAIN RELATIVELY HIGH RATES FOR MORE THAN A FEW WEEKS COUNTRIES THAT HAVE HAD WEAK CURRENCIES WILL START TO CUT SOON PREDICTS GUENTHER GARSTENBERGER AN ECONOMIST AT THE FRANKFURTBASED BANK B METZLER THEY CAN'T KEEP UP GIVEN THE BUNDESBANK WILL ONLY BE CUTTING RATES IN SMALL STAGES OVER THE NEXT SEVERAL MONTHS ADDS ALAIN SPADONE AN ECONOMIST AT CBITDB UNION BANCAIRE PRIVEE IN GENEVA THE CURRENT FRENCH GOVERNMENT IS RUNNING MONETARY POLICY IN A TYPICALLY BUREAUCRATIC DOCTRINAIRE MANNER THAT WILL EVENTUALLY HAVE TO BE ABANDONED FOR PRAGMATISM THE MARK IS LIKELY TO RISE 5 TO 10 AGAINST ITS EUROPEAN PARTNER CURRENCIES IN THE SHORT TERM SINCE THE CRISIS IT HAS RISEN SEVERAL PERCENTAGE POINTS AGAINST THE FRENCH FRANC IT ALSO IS WELLSUPPORTED AGAINST THE US DOLLAR GIVEN THAT GERMAN SHORTTERM INTEREST RATES AT ROUGHLY 64 ARE ABOUT TWICE THOSE IN THE US THE STRONGER MARK HOWEVER IS EXPECTED TO SQUEEZE GERMANY'S EXPORTDRIVEN ECONOMY CUTTING ESPECIALLY INTO THE AUTOMOBILE CHEMICAL AND MACHINERY SECTORS THE ERM CRISIS MEANS A GERMAN RECOVERY WILL COME ABOUT SIX MONTHS LATER THAN WE HAD ANTICIPATED SAYS MR GARSTENBERGER MR GARSTENBERGER AND OTHERS EXPECT THE SUSTAINED WEAKNESS OF THE GERMAN ECONOMY WILL LOWER THE MARK SIGNIFICANTLY AGAINST THE DOLLAR AND OTHER EUROPEAN CURRENCIES THE AVERAGE FORECAST OF 109 ANALYSTS SURVEYED BY CONSENSUS ECONOMICS INC IS FOR A MARK OF 179 TO THE DOLLAR IN 12 MONTHS WEAKENING FROM 1697 MARKS FRIDAY EUROPEAN COMMUNITY COMMISSIONERS GATHERED LATE FRIDAY FOR A SPECIAL MEETING CALLED BY COMMISSION PRESIDENT JACQUES DELORS TO DISCUSS THE CURRENCY CRISIS THE EVENT WAS MOST NOTEWORTHY FOR THOSE WHO DIDN'T ATTEND THE COMMISSION'S TWO GERMAN MEMBERS PETER SCHMIDHUBER IN CHARGE OF BUDGET MATTERS AND MARTIN BANGEMANN WHO HANDLES INDUSTRIAL POLICY BOTH DECLINED TO INTERRUPT THEIR VACATIONS ADDING TO SPECULATION THAT GERMAN POLITICIANS ARE DISTANCING THEMSELVES FROM THE EMS AND EUROPEAN MONETARY UNION IN A STATEMENT RELEASED AFTERWARD THE COMMISSION CALLED ON EC MEMBERS TO RESPECT COMMON DISCIPLINES IN THEIR ECONOMIC POLICIES WITHOUT SUCH DISCIPLINES THE STATEMENT WARNED THERE CAN BE NO SMOOTH FUNCTIONING OF THE INTERNAL MARKET NOR OF MONETARY COOPERATION NOR OF COMMON AGRICULTURAL POLICY THE COMMISSION SAID IT IN NO WAY UNDERESTIMATES THE GRAVITY OF THE EVENTS WHICH HAVE WEAKENED THE CREDIBILITY OF EUROPEAN CONSTRUCTION AND NOT ONLY ECONOMIC AND MONETARY UNION IT ADDED THAT THERE IS NO ALTERNATIVE SOLUTION THAT WILL ASSURE THE PROSPERITY AND INFLUENCE OF THE EUROPEAN NATIONS 9308090007 930809 THERMO VOLTEK SAYS NET INCOME FELL 28 IN THE SECOND QUARTER MOUNT KISCO NY THERMO VOLTEK CORP CITING HIGH INTEREST PAYMENTS SAID IT EXPECTS TO REPORT THAT SECONDQUARTER NET INCOME FELL 28 ON A 29 REVENUE INCREASE JOHN W WOOD JR THERMO VOLTEK'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID NET INCOME FOR THE QUARTER IS EXPECTED TO BE 92000 OR FOUR CENTS A SHARE IN THE YEAREARLIER PERIOD THE COMPANY HAD NET OF 128000 OR FIVE CENTS A SHARE REVENUE FOR THE QUARTER IS EXPECTED TO TOTAL 39 MILLION COMPARED WITH 3 MILLION A YEAR EARLIER MR WOOD SAID IN AN INTERVIEW THERMO VOLTEK MAKES HIGHVOLTAGE POWER CONVERSION SYSTEMS IN ITS UNIVERSAL VOLTRONICS DIVISION AND ELECTRONIC TESTING INSTRUMENTS IN ITS KEYTEK UNIT THE COMPANY IS 54 OWNED BY THERMEDICS INC WHICH IS MAJORITYOWNED BY THERMO ELECTRON CORP WALTHAM MASS THERMO VOLTEK WAS ORIGINALLY CALLED UNIVERSAL VOLTRONICS CORP BUT WAS RENAMED LAST NOVEMBER THERMO VOLTEK SAID NET INCOME WAS HURT BY 127000 IN QUARTERLY INTEREST PAYMENTS ON A CONVERTIBLE DEBENTURE SOLD LAST YEAR TO THERMEDICS FOR THE ACQUISITION OF KEYTEK WHILE THE PAYMENTS HURT THERMO VOLTEK'S QUARTERLY NET INCOME KEYTEK'S REVENUE ACCOUNTED FOR 64 OF THERMO VOLTEK'S TOTAL QUARTERLY REVENUE MR WOOD SAID WE FEEL HAPPIER AND HAPPIER WITH THE ACQUISITION KEYTEK IS A GROWING BUSINESS HE SAID KEYTEK MANUFACTURES TESTING EQUIPMENT THAT MEASURES THE IMMUNITY OF ELECTRONIC PARTS AND PRODUCTS TO PULSED ELECTRICAL DISTURBANCES LIKE LIGHTNING KEYTEK HAS A 50 MARKET SHARE IN THE US SELLING TO COMPUTER TELECOMMUNICATIONS AND AUTOMOBILE COMPANIES THERMO VOLTEK EXPECTS THE UNIT TO GROW AS A NEW STRICTER EUROPEAN COMMUNITY STANDARD ON ELECTRONIC PRODUCTS IS ENFORCED BEGINNING IN 1996 THE STANDARD WILL REQUIRE THAT ALL IMPORTED ELECTRONIC PRODUCTS SOLD IN EUROPE ARE HIGHLY IMMUNE TO PULSED ELECTROMAGNETIC INTERFERENCE MR WOOD SAID 9308090006 930809 CORRECTIONS & AMPLIFICATIONS A SPOKESMAN FOR THE INTERNATIONAL UNION OF RAILWAYS OR UIC SAID THAT THE EUROPEAN RAILWAY UNION ISSUED A LETTER TO FIVE OR SIX PERSONS INCLUDING SOME IN THE US WHO HAD REQUESTED CLARIFICATION ABOUT ITS ADOPTION OF AN AMTECH CORP JOINT VENTURE'S AUTOMATIC IDENTIFICATION TECHNOLOGY AS A STANDARD FOR EUROPEAN RAILCARS AS QUOTED IN THURSDAY'S HEARD ON THE STREET COLUMN ELISABETH ROEPSTORFF A PUBLICRELATIONS OFFICER FOR THE UNION SAID INCORRECTLY THAT THE LETTER WAS ISSUED IN RESPONSE TO A REQUEST FROM TOM BARTON OF WHITE ROCK CAPITAL IN DALLAS MR BARTON ACKNOWLEDGES THAT HE REQUESTED INFORMATION ABOUT THE UNION'S DECISION BUT SAYS THAT HIS REQUEST WAS THE SAME AS ANYONE ELSE WHO ASKED FOR MORE DATA IN THE COURSE OF DOING RESEARCH PLANS FOR ARTAL NV A DUTCH CONGLOMERATE TO SELL CERTAIN US FOOD COMPANIES TO TEXAS INVESTORS WERE REPORTED IN THE JUNE 15 ISSUE OF MILLING & BAKING NEWS A WALL STREET JOURNAL ARTICLE JULY 27 SAID INCORRECTLY THAT AN AMERICAN BANKER ARTICLE JULY 26 WAS THE FIRST ONE TO REPORT ON THE PROPOSAL PHILIP MORRIS COS SAID ITS NEW ADVERTISING CAMPAIGN FOR BASIC DISCOUNT CIGARETTES WILL RUN IN COSMOPOLITAN THE NATIONAL ENQUIRER SOAP OPERA DIGEST AND PARADE AMONG OTHER PUBLICATIONS IN THURSDAY'S ADVERTISING COLUMN THE COMPANY INCORRECTLY SAID THE ADS WOULD RUN ALSO IN GOOD HOUSEKEEPING WHICH DOESN'T ACCEPT CIGARETTE ADVERTISING AN ARTICLE FRIDAY ON THE SETTLEMENT OF LEGAL DISPUTES BETWEEN INTEL CORP AND CYRIX CORP CONCERNED ONLY CASES INVOLVING A COMPUTER CHIP KNOWN AS A MATH COPROCESSOR THE SETTLEMENTS DON'T AFFECT OTHER LITIGATION BETWEEN THE COMPANIES INVOLVING A MICROPROCESSOR KNOWN AS THE 486SLC SPRINT CORP SAID THAT IT WILL RECEIVE A 25 STAKE IN CALLNET ENTERPRISES INC IN EXCHANGE FOR CALLNET'S USE OF MUCH OF SPRINT'S INTELLECTUAL PROPERTY INTELLIGENT NETWORK CAPABILITIES AND THE RIGHT TO OFFER CERTAIN SPRINT PRODUCTS AND SERVICES IN CANADA FOR WHICH SPRINT WILL RECEIVE ROYALTIES OVER A 10YEAR PERIOD BASED ON INCORRECT INFORMATION FROM SPRINT AN ARTICLE THURSDAY SAID SPRINT WOULD PAY ABOUT 47 MILLION FOR THE 25 STAKE IN CALLNET WILLIAM REID AND KAREN BECHTEL BOTH MANAGING DIRECTORS WERE APPOINTED COHEADS OF MORGAN STANLEY & CO'S FINANCIAL ENTREPRENEUR GROUP AND STEPHEN MUNGER ALSO A MANAGING DIRECTOR JOINED THE GROUP IN AN ARTICLE FRIDAY THE COMPANY INCORRECTLY SAID MR MUNGER WOULD BE COHEAD OF THE GROUP 9308090005 930809 MANAGER'S JOURNAL WASHING AWAY THE SIN OF OVERPAYMENT EARLIER THIS YEAR PRESIDENT CLINTON ORDERED A PERFORMANCE AUDIT OF FEDERAL AGENCIES IN AN EFFORT TO ROOT OUT HIDDEN POCKETS OF WASTEFUL SPENDING A GREAT WAY TO START WOULD BE BY ENDING OVERPAYMENT OF BILLS EVEN SOME OF THE BESTRUN CORPORATIONS IN THE US ARE GUILTY OF THIS SIN MY FIRM STEPS IN AT THE BEHEST OF CLIENTS AT THE END OF THE YEAR AFTER INVOICES HAVE BEEN REVIEWED AND PAID AND OFTEN AFTER THE CLIENT'S OWN AUDITORS HAVE REREVIEWED THE BOOKS DESPITE THESE INTERNAL REVIEWS OUR AUDITORS FIND ON AVERAGE OVERPAYMENTS OF ONETENTH OF 1 OF ALL PAYMENTS MADE DURING THE AUDIT PERIOD THE PERCENTAGE IS SMALL BUT THE SAVINGS CAN BE HEFTY FOR A MAJOR RETAILER SUCH AS JC PENNEY CO WHICH REPORTED 29 BILLION IN ACCOUNTS PAYABLE IN 1992 THE SAVINGS WOULD BE 29 MILLION AND FOR THE FEDERAL GOVERNMENT WHOSE CASH OUTLAYS TOTALED 14 TRILLION LAST YEAR A 01 SAVINGS WOULD RECAPTURE 14 BILLION IN OVERSPENT PUBLIC FUNDS TO BE SURE SOME OF THIS IS RECOVERED BY THE GENERAL ACCOUNTING OFFICE BUT A SIZABLE SHARE STILL SLIPS AWAY IN WORKING WITH MORE THAN 1000 COMPANIES WE HAVE SEEN THE SAME ERRORS CROP UP WITH ENOUGH REGULARITY TO CONVINCE US THAT OVERPAYMENTS ARE INTRINSIC TO THE PROCESS OF BUYING AND SELLING THESE PROBLEMS USUALLY BEGIN WITH THE FACT THAT IN MOST LARGE COMPANIES THE PERSON OR DEPARTMENT THAT PLACES THE ORDER IS NOT THE SAME PARTY THAT PAYS THE BILL FOR EXAMPLE IF THE BUYER HAS NEGOTIATED A NONPUBLISHED PRICE AGREEMENT WITH THE SELLER THE PAYER MAY NOT KNOW EVERYTHING ABOUT IT ADDING TO THE PROBLEM IS THE DIZZYING ARRAY OF PRICE PROMOTIONS AND SPECIAL ALLOWANCES THAT VENDORS OFFER CAUSING PRICES TO FLUCTUATE FROM MONTH TO MONTH OR SOMETIMES DAY TO DAY THESE MARKETING PROMOTIONS WHICH MAY BE ANYTHING FROM LIMITEDTIMEONLY DISCOUNTS TO REFUND OFFERS TURN SIMPLE INVOICES INTO COMPLICATED DOCUMENTS CORPORATE PAYMENT CLERKS USUALLY DON'T HAVE THE TIME TO SIFT THROUGH THE DETAIL TO BE SURE THAT A COMPANY GETS CREDIT FOR ALL THE SPECIAL DISCOUNTS IT MAY BE ENTITLED TO AND MANY VENDORS OFFER REFUNDS AND OTHER INCENTIVES AFTER THE SALE BUT IT'S UP TO THE BUYER TO REQUEST CREDIT FOR THEM GIVEN THESE CONDITIONS MISTAKES OCCUR WITH ALARMING FREQUENCY MOST OFTEN THEY ARE SIMPLE HUMAN ERRORS A SHIPPING CHARGE OF 32070 GETS BILLED AS 320700 AND GETS PAID A BUYER RECEIVES A SEPARATE STATEMENT AND INVOICE ON A SINGLE ORDER AND PAYS BOTH CONFUSING THE VENDOR'S NAME ONE COMPANY PAID THE SAME INVOICE TWICEONCE TO 3M AND ONCE TO MINNESOTA MINING & MANUFACTURING GRANTED MANY CORPORATIONS TOLERATE HUMAN ERROR AS A COST OF DOING BUSINESS TO A CERTAIN DEGREE OVERPAYMENT OF ACCOUNTS IS PART OF THE CALCULATED RISK THAT BUSINESSES INCREASINGLY NEED TO TAKE TO BE PROFITABLE BUT SINCE THESE ERRORS OFTEN RESULT FROM INTERNAL SYSTEMIC PROBLEMS MANAGERS CAN TAKE MEASURES TO REDUCE LOSSES BY IDENTIFYING AND IMPLEMENTING SYSTEMIC SOLUTIONS REEVALUATE YOUR PURCHASEANDPAY PROCESS THIS IS A GOOD ASSIGNMENT FOR A QUALITYIMPROVEMENT TEAM YOUR OBJECTIVES HERE ARE TO IMPROVE COMMUNICATION BETWEEN THE PURCHASERS IN YOUR MARKETING DEPARTMENT AND THE PAYERS IN FINANCE AND TO SIMPLIFY THE PROCESS AS MUCH AS POSSIBLE LISTEN TO THE COMMENTS OF THOSE WHO USE THE SYSTEM DAILY THEY TYPICALLY KNOW WHAT WORKS AND WHAT DOESN'T AND THEIR INPUT CAN STREAMLINE THE PROCESS BE ALERT TO THE DANGERS OF AUTOMATION OVERPAYMENT OF BILLS IS NOT ALWAYS A CASE OF HUMAN OVERSIGHT MANY OF THESE TRANSACTIONS NOW ARE PARTLY OR WHOLLY AUTOMATED WHICH MEANS THEY GET PAID WITH LITTLE OR NO HUMAN OVERSIGHT SOMETIMES AUTOMATED PAYMENT SYSTEMS ARE SIMPLY TOO COMPLICATED FOR THE CLERICAL STAFF TO USE BEFORE YOU SET UP AN AUTOMATED SYSTEM CONSULT WITH THE PEOPLE WHO WILL BE USING IT TO BE SURE IT'S USERFRIENDLY ALSO THOUGH AUTOMATION CAN REDUCE YOUR HUMAN RESOURCES COSTS THE SPEED OF AUTOMATION CAN COMPOUND SIMPLE MISTAKES IMAGINE HOW QUICKLY OVERPAYMENTS CAN ADD UP WHEN BILLS ARE PAID ELECTRONICALLY MANY SUCH SYSTEMS LEAVE NO AUDIT TRAIL MAKING IT HARD FOR AUDITORS TO FIND OUT WHERE OVERPAYMENTS HAVE BEEN MADE PAY ATTENTION TO PEAKS AND TRANSITIONAL PERIODS INVARIABLY COMPANIES ARE MORE VULNERABLE TO ERRORS IN ACCOUNTS PAYABLE WHEN THEY ENJOY A HIGH VOLUME OF BUSINESS BUT COMPANIES SHOULD ALSO PAY CLOSER ATTENTION TO BILLS DURING TIMES OF INTERNAL CHANGES SUCH AS A CONVERSION TO A NEW COMPUTER SYSTEM DEPARTMENTAL REORGANIZATIONS EMPLOYMENT OF TEMPORARY PERSONNEL AND EMPLOYEE TURNOVER KEEP A SHARP EYE OUT FOR PATTERNS OF OVERPAYMENT SOMETIMES OVERPAYMENTS ARE ISOLATED INSTANCES BUT THEY CAN OCCUR WITH REGULARITY WHEN YOU DETECT A PATTERN OF OVERPAYMENTS YOU CAN TAKE STEPS TO PREVENT THEM A FEW YEARS AGO WE DEMONSTRATED HOW ONE OF OUR CLIENTS A MAJOR DISCOUNT RETAILER WAS SYSTEMATICALLY FAILING TO TAKE ADVANTAGE OF CERTAIN TRADE ALLOWANCES FROM ITS VENDORS THE RETAILER RESPONDED BY WRITING A SOFTWARE PROGRAM THAT ALERTS THE ACCOUNTSPAYABLE DEPARTMENT TO ANY INVOICES WHERE THESE TRADE ALLOWANCES MIGHT BE AVAILABLE FOR BUSINESSES THE REWARD OF RECOVERING OVERPAYMENTS IS THAT THE MONEY FALLS DIRECTLY TO THE BOTTOM LINE IN THE GOVERNMENT'S CASE IT'S A SWIPE AGAINST DEFICIT SPENDING IT'S HARDLY A CUREALL BUT THERE IS SOME SATISFACTION IN TAKING BACK WHAT'S YOURS MR SCHULTZ IS PRESIDENT OF A DALLASBASED ACCOUNTSPAYABLE AUDITING FIRM 9308090004 930809 DUTCH CONSUMER PRICES RISE AMSTERDAM CONSUMER PRICES IN THE NETHERLANDS ROSE 07 IN JULY FROM THE PREVIOUS MONTH BECAUSE OF A SPECIAL FACTOR THAT OCCURS ANNUALLY AT THIS TIME THE GENERAL CONSUMER PRICE INDEX HOWEVER WAS UP A MODEST 21 FROM JULY A YEAR EARLIER THE CENTRAL BUREAU FOR STATISTICS REPORTED THE JULY RISE WAS IN STARK CONTRAST TO A 03 MONTHLY DECLINE IN THE DUTCH CONSUMER PRICE INDEX IN JUNE WHEN THE YEARTOYEAR INCREASE WAS 21 THE JULY INCREASE WAS DUE ENTIRELY TO THE JULY 1 GOVERNMENTSET ANNUAL RISE IN DUTCH HOUSING RENTS THE IMPACT OF THE 54 INCREASE IN RENTS ALONE ADDED 12 PERCENTAGE POINTS TO THE GENERAL PRICE INDEX 9308090003 930809 GOTTSCHALKS JULY SALES ROSE FRESNO CALIF GOTTSCHALKS INC SAID JULY SALES ROSE 16 TO 222 MILLION FROM 219 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR SLIPPED 16 9308090002 930809 FOREIGN EXCHANGE PASSAGE OF TAX BILL COULD GIVE DOLLAR SHORTLIVED BOOST IN EXCHANGE MARKETS BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE CLIFFHANGER PASSAGE OF THE CLINTON ADMINISTRATION'S BUDGET BILL COULD GIVE THE DOLLAR A SHORTLIVED BOOST IN THE FOREIGNEXCHANGE MARKETS BUT THE PROSPECT OF SLOWER US ECONOMIC GROWTH WILL SOON CLOUD THE CURRENCY'S PROSPECTS CURRENCY DEALERS ESPECIALLY OUTSIDE THE US WILL WELCOME EVIDENCE THAT THE ADMINISTRATION HAS AVOIDED POLITICAL PARALYSIS ANALYSTS AND TRADERS SAY BUT THE TAX INCREASES AND SPENDING CUTS CONTAINED IN THE BUDGET PACKAGE WILL CONSTRAIN ECONOMIC GROWTH AT LEAST IN THE SHORT TERM AND KEEP PRESSURE ON THE DOLLAR THEY SAY PESSIMISM ABOUT THE OUTLOOK MANIFESTED ITSELF FRIDAY WHEN THE DOLLAR DECLINED ABOUT A PFENNIG AND A HALF AGAINST THE MARK DESPITE A JOBS REPORT THAT SHOWED US EMPLOYMENT EXPANDING IN LINE WITH EXPECTATIONS LATE FRIDAY IN NEW YORK THE DOLLAR TRADED AT 16965 MARKS DOWN FROM 17105 MARKS THE DOLLAR WAS MODESTLY FIRMER AGAINST THE YEN TRADING AT 10441 YEN COMPARED WITH 10400 YEN THURSDAY ABOUT NOON MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10455 YEN AND AT 16956 MARKS ANY DOLLAR RALLY EARLY THIS WEEK WILL MEET THE SAME FATE TRADERS SAY REALITY WILL SET IN SAYS MICHAEL MALPEDE SENIOR CURRENCY ANALYST AT REFCO INC IN CHICAGO THE DOLLAR'S NEXT MOVE WILL BE DOWN THE BUDGET PACKAGE IS DESIGNED TO CUT 496 BILLION FROM THE FEDERAL BUDGET DEFICIT OVER FIVE YEARS BUT ANALYSTS ARE SKEPTICAL ABOUT THE BENEFITS IF WE DID GET OUR FISCAL HOUSE IN ORDER IN THREE TO FOUR YEARS WE WOULD HAVE A DOLLAR BULL MARKET SAYS WILLIAM O'GRADY FUTURES ANALYST AT AG EDWARDS INC IN ST LOUIS THE IMPACT WOULD BE EVEN GREATER IF GERMANY CONTINUED TO STRUGGLE WITH ITS OWN UNIFICATIONRELATED DEFICITS HE ADDS A LOWER DEFICIT WOULD IMPROVE THE BALANCE BETWEEN INVESTMENT AND SAVINGS HE SAYS WITH HIGHER SAVINGS RATES BOOSTING THE SUPPLY OF MONEY AVAILABLE FOR INVESTMENT NOT ONLY WOULD DOMESTIC INVESTMENT SPUR DOMESTIC GROWTH BUT FOREIGN INVESTMENT WOULD HELP DRIVE EXPORTS HIGHER RISING EXPORTS IN TURN WOULD IMPROVE THE US TRADE BALANCE STRENGTHENING THE DOLLAR BUT THOSE EFFECTS ARE TOO DISTANT AND UNCERTAIN TO HELP THE DOLLAR AT THIS JUNCTURE MR O'GRADY SAYS IN IMMEDIATE TERMS THERE ARE TWO PROBLEMS WE DON'T KNOW IF IT WILL WORK AND IT WILL BE A DRAG ON GROWTH EVEN THE OPTIMISTIC INTERPRETATION OF THE BUDGET PACKAGE IS LUKEWARM ECONOMISTS SAY THE IDEA THAT WE COULD STABILIZE THE FEDERAL BUDGET DEFICIT AROUND 3 OF GDP GROSS DOMESTIC PRODUCT FOR A FEW YEARS IS GOOD NEWS BUT NOT GREAT NEWS SAYS PAUL BOLTZ FINANCIAL ECONOMIST AT T ROWE PRICE ASSOCIATES IT'S NOT THE SAME AS BRINGING THE FEDERAL BUDGET DEFICIT DOWN LOW INTEREST RATES PRESSED BY ANTICIPATION OF SLOWER GROWTH WILL ALSO MAKE DOLLARDENOMINATED ASSETS LESS ATTRACTIVE COMPARED WITH MARKDENOMINATED INVESTMENTS THE CONVICTION THAT THE PACKAGE WILL DAMP ECONOMIC GROWTH HAS HELPED DRIVE BOND YIELDS LOWER ANALYSTS POINT OUT THIS IS A CONTRACTIONARY PACKAGE SAYS DAVID ROLLEY SENIOR FINANCIAL ECONOMIST AT DRI/MCGRAWHILL INC TAX INCREASES AND SPENDING CUTS DON'T STRENGTHEN ECONOMIES IN THE IMMEDIATE TERM THEY SLOW THEM DOWN IF SLOWER GROWTH POSTPONES AN INCREASE IN SHORTTERM RATES BY THE FEDERAL RESERVE BOARD IT WILL TAKE THAT MUCH LONGER FOR THE GAP BETWEEN US AND GERMAN RATES TO CLOSE THOSE CONCERNS WILL BE EXACERBATED BY UNCERTAINTY ABOUT THE ADMINISTRATION'S COMING HEALTHCARE REFORM PROPOSALS WHOSE POTENTIAL FOR RAISING COSTS TO BUSINESSES ALREADY WORRIES SOME TRADERS THE 500POUND GORILLA WAITING BEHIND THIS BUDGET PACKAGE IS THE HEALTHCARE PLAN MR O'GRADY SAYS 9308090150 930713 MARKETSCAN AMERICA'S SWEET TOOTH SEEMS NUMBED BY TOUGH TIMES DEARTH OF NEW TREATS BY KATHLEEN DEVENY CANDYLAND IS FEELING THE CRUNCH AFTER MORE THAN A YEAR OF RAPID GROWTH HERSHEY FOODS CORP RECENTLY FORECAST DISAPPOINTING EARNINGS FOR ITS SECOND QUARTER MEANWHILE SALES ARE MELTING FOR NO 2 CANDY MAKER MARS INC AND NESTLE SA ALTHOUGH A MORE AGGRESSIVE COMPETITOR SINCE ITS ACQUISITION OF THE BUTTERFINGER AND BABY RUTH BRANDS IN 1990 HAS HAD DISAPPOINTING RESULTS IN RECENT MONTHS ONCE CONSIDERED IMMUNE TO ECONOMIC UPS AND DOWNS THE US CANDY MARKET IS FINALLY FEELING THE PINCH MARKETERS BLAME THE LACKLUSTER RESULTS PRIMARILY ON THE SLUGGISH ECONOMY AS WELL AS A TEMPORARY LULL IN NEWPRODUCT INTRODUCTIONS SOME INDUSTRY INSIDERS SPECULATE THAT THE PROBLEMS MAY RUN DEEPER CONFRONTED WITH SCORES OF METOO PRODUCTS CONSUMERS ARE AVOIDING IMPULSE PURCHASES THERE HASN'T BEEN A LOT OF REAL INNOVATION IN THE INDUSTRY FOR SEVERAL YEARS SAYS KIN LEUNGE A CANDY BUYER FOR DAYTON HUDSON CORP'S TARGET CHAIN MR LEUNGE SAYS THAT CANDY SALES HAVE BEEN FLAT FOR ABOUT TWO YEARS BUT HAVE SLOWED CONSIDERABLY IN RECENT MONTHS I'M STARTING TO WORRY HE ADDS THE EXTREME SUMMER WEATHER WON'T HELP MATTERS ANALYSTS SAY HOT WEATHER IN EASTERN STATES AND FLOODING IN THE MIDWEST ARE LIKELY TO FURTHER CURB CANDY SALES AT LEAST TEMPORARILY IT'S BEEN A WET HOT SUMMER SAYS JOAN STEUER PRESIDENT OF CHOCOLATE MARKETING IN LOS ANGELES IF ITS 95 DEGREES OUT AND YOU'RE HEADING FOR THE BEACH YOU JUST DON'T WANT A CHOCOLATE BAR DATA GATHERED BY CHICAGOBASED INFORMATION RESOURCES INC SHOW THAT CANDY SALES IN SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS INCHED UP ONLY 13 DURING THE 12 WEEKS ENDED MAY 23 COMPARED WITH THE COMPARABLE YEAREARLIER PERIOD THAT COMPARES WITH 75 GROWTH DURING THE 52 WEEKS ENDED ON THE SAME DATE SALES OF NEARLY EVERY MAJOR MANUFACTURER SLOWED DURING THE PERIOD NESTLE'S SALES JUMPED 8 DURING THE 52WEEK PERIOD BUT DECLINED 104 DURING THE RECENT 12WEEK PERIOD WHILE MARS'S SALES DIPPED 11 DURING THE 52 WEEKS THE DECLINE ACCELERATED TO 56 DURING THE RECENT PERIOD EVEN MARKET LEADER HERSHEY'S SALES SLOWED SIGNIFICANTLY DURING THE 52 WEEKS HERSHEY'S SALES GREW BY 79 BUT INCREASED ONLY 32 DURING THE 12WEEK PERIOD SALES OF RUSSELL STOVER CANDIES INC INCREASED 144 DURING THE 12 WEEKS DUE MAINLY TO THE COMPANY'S ACQUISITION OF THE WHITMAN CHOCOLATES BRAND FROM PET INC EARLIER THIS YEAR PRICE COMPETITION MAY ACCOUNT FOR SOME OF THE CATEGORY'S DECLINE THE AVERAGE RETAIL PRICE OF A POUND OF HERSHEY'S CANDY DECLINED TO 315 FROM 325 DURING THE 12 WEEKS COMPARED WITH THE YEAREARLIER PERIOD MEANWHILE THE AVERAGE PRICE OF MARS'S CANDY SANK TO 279 FROM 294 ACCORDING TO INFORMATION RESOURCES BUT GROWTH OF UNIT SALES HAS ALSO SLOWED IN RECENT MONTHS SALES OF CANDY MEASURED IN POUNDS GREW 86 DURING THE 52 WEEKS BUT INCREASED AT ABOUT HALF THAT RATE DURING THE 12WEEK PERIOD THE CANDY CATEGORY GENERALLY PERFORMS BETTER THAN OTHER PACKAGED GOODS DURING AN ECONOMIC SLUMP SAYS LEONARD TEITELBAUM AN ANALYST WITH MERRILL LYNCH & CO BUT THERE IS A SQUEEZE ON PERSONAL INCOME AND PEOPLE ARE SHOPPING MORE FROM LISTS THESE DAYS HERSHEY EXECUTIVES SAY THE SECOND QUARTER TRADITIONALLY THE SLOWEST IN THE CANDY BUSINESS WAS WEAKER THAN USUAL FOR THE INDUSTRY DEMAND IN MOST OUTLETS WHERE CANDY IS SOLD HAS SOURED IN THE PAST FOUR OR FIVE MONTHS ACCORDING TO KENNETH L WOLFE HERSHEY'S PRESIDENT MR WOLFE CITES THE WEAK ECONOMY WHICH IS DISCOURAGING SHOPPERS FROM BROWSING IN STORES THUS LIMITING THE OPPORTUNITY FOR IMPULSE PURCHASES WE'RE SUFFERING FROM SOME OF THE GENERAL MALAISE AFFECTING THE FOOD INDUSTRY MR WOLFE SAYS SOME MARKET RESEARCHERS SEE MORE FUNDAMENTAL PROBLEMS FOR THE INDUSTRY ON A PER CAPITA BASIS AMERICANS ARE EATING CANDY LESS OFTEN THAN THEY DID IN 1987 ACCORDING TO MRCA INFORMATION SERVICES A STAMFORD CONN COMPANY THAT TRACKS CONSUMERS' EATING HABITS WORSE FROM THE STANDPOINT OF CANDY MAKERS THE SHARPEST DECLINE WAS AMONG SOME OF THE INDUSTRY'S MOST AVID FANS KIDS UNDER THE AGE OF SIX NOW EAT CANDY 35 TIMES A YEAR MRCA SAYS COMPARED WITH 41 TIMES A YEAR IN 1987 ONE EXPLANATION HEALTHCONSCIOUS BABY BOOMERS ARE LIMITING THEIR KIDS' SUGAR CONSUMPTION MORE THAN PREVIOUS GENERATIONS DESPITE ITS CURRENT WOES HOWEVER HERSHEY CONTINUES OUTPACING ITS ARCHRIVAL MARS IN THE DECADESLONG BATTLE OVER THE NO 1 TITLE IN THE US CONFECTIONARY MARKET MARS SURPASSED HERSHEY IN THE EARLY 1970S BUT HERSHEY PULLED AHEAD AGAIN WITH ITS 1988 ACQUISITION OF THE US CANDY BUSINESS OF CADBURY SCHWEPPES THE MAKER OF SUCH BRANDS AS MOUNDS AND ALMOND JOY ABOUT TWO YEARS AGO MARS MADE SOME GAINS WITH A FLURRY OF NEW PRODUCTS INCLUDING PEANUT BUTTER M&MS AND A REDUCEDCALORIE MILKY WAY II BAR NEWPRODUCT INTRODUCTIONS HAVE SLOWED AT MARS OVER THE PAST TWO YEARS HOWEVER AND CANDY DISTRIBUTORS SAY SOME OF THE BRAND EXTENSIONS SUCH AS NEW FLAVORS OF M&MS AND MILKY WAY DARK CHOCOLATE BAR MAY HAVE TAKEN A BITE OUT OF THE COMPANY'S CORE BRANDS WHAT'S MORE MARS'S LACKLUSTER PERFORMANCE COMES AT A TIME OF MANAGEMENT TURMOIL AT THE CLOSELY HELD COMPANY LAST YEAR TWO TOP MARKETING EXECUTIVES LEFT MARS TO JOIN NABISCO FOOD GROUP'S LIFESAVERS DIVISION A MARS SPOKESMAN SAYS ONLY THAT MARKET SHARE ISN'T THE COMPANY'S ONLY MEASURE OF SUCCESS HERSHEY ISN'T TURNING DOWN THE HEAT AND EXECUTIVES THERE SAY THEY STILL EXPECT RECORD EARNINGS FOR THE FULL YEAR THE COMPANY INCREASED ITS ADVERTISING SPENDING BY 176 LAST YEAR COMPARED WITH 1991 AND VOWS TO SPEND AT THE SAME RATE THIS YEAR HERSHEY IS ALSO GEARING UP FOR THE LAUNCH OF HUGS A BRAND EXTENSION OF THE POPULAR KISSES ANALYSTS SAY HUGS WHICH HAVE A WHITE CHOCOLATE COATING OVER MILK CHOCOLATE HAVE THE POTENTIAL TO BE A 100 MILLION PRODUCT FOR HERSHEY INDEED NEW PRODUCTS LAUNCHED FOR THE CRITICAL BACKTOSCHOOL AND HOLIDAY SELLING SEASONS COULD HELP IN JUNE EJ BRACH CORP INTRODUCED ITS BRACH'S ROCKS CANDIES FRUITFLAVORED SWEETS THAT HAVE ROCKCOLORED CANDY SHELLS THE PRODUCT MARKS THE MOST AGGRESSIVE ATTEMPT YET BY THE CHICAGOBASED CONFECTIONER BEST KNOWN FOR ITS PICKAMIX BRAND OF ASSORTED CANDY PIECES TO TARGET TOTS ALSO NEW FROM BRACH'S FOR THIS FALL CHAMPS CANDIES CHOCOLATECOVERED PEANUTS COATED IN THE SCHOOL COLORS OF 15 COLLEGES MEANWHILE NESTLE IS TESTING AERO A LIGHTERFLAVORED CHOCOLATE BAR AIMED AT WOMEN IN SEVERAL MARKETS THE COMPANY IS NOW LAUNCHING BAGS OF BITESIZED CANDY PIECES CALLED BUTTERFINGER BB'S AND NESTLE BUNCHA CRUNCH TO COMPETE AGAINST MARS'S M&M'S AND HERSHEY'S REESE'S PIECES AND THE COMPANY IS PLANNING THE LARGEST PROMOTION EVER FOR ITS BUTTERFINGER BRAND FEATURING THE PUCKISH CARTOON CHARACTER BART SIMPSON BUT WHILE NESTLE SAYS IT IS ENCOURAGED BY RECENT GROWTH THE COMPANY CONCEDES THAT THE US CANDY MARKET IS SOFT AND THAT ITS COMPETITION IS TOUGHER THAN EVER NEW OR REFORMULATED PRODUCTS SUCH AS ALMOND M&MS MILKY WAY II BAR NONE AND HERSHEY'S COOKIES N' MINT BAR HAVEN'T KEPT CANDY SALES FROM SOFTENING IN RECENT MONTHS SEE RELATED LETTER LETTERS TO THE EDITOR NOTHING TO SNICKER AT WSJ AUG 9 1993 9307130122 YY93 MM08 9308090057 930707 IN THE LAB BREWERY SCIENTISTS DISTILL PHYSICS OF FOAM BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL ZOUTERWOUDE THE NETHERLANDS FRESH FROM HIS LABORS ON THE FRONTIERS OF BEEROLOGY DUTCH SCIENTIST ALEXANDER RONTELTAP POURS HIMSELF A NICE COLD GLASS OF BEER THEN HE PERFORMS CRUEL AND UNUSUAL EXPERIMENTS ON IT WITH THE SOBER MIEN OF A PHYSICS PROFESSOR THE RESEARCHER FOR DUTCH BREWER HEINEKEN NV PICKS UP A SMALL VIAL OF COOKING OIL AND INSTRUCTS A VISITOR TO OBSERVE HE DROPS A GLISTENING BEAD OF OIL INTO THE FOAMY WHITE HEAD THE HEAD COLLAPSES CONCLUSION OIL + BEER = NO FOAM BUT WAIT HIS EXPERIMENT ISN'T OVER NEXT HE TOSSES SOME LITTLE GLASS BEADS INTO THE BEER THE BEER FIZZES BACK TO LIFE WHAT'S GOING ON HERE ANYONE GUESSING THE ANSWER DESERVES WELL NOT THE NOBEL PRIZE BUT AT LEAST A GLASS OF BEER MR RONTELTAP WORKS IN HEINEKEN'S MAIN LABORATORY HERE IN THIS SLEEPY DUTCH TOWN AND HIS JOB IS UNRAVELING SUCH SEEMINGLY TRIVIAL POSERS THE ANSWER TO THIS ONE IS BELOW BUT HIS SPECIALTY THE PHYSICS OF BEER FOAM TURNS OUT TO BE SURPRISINGLY COMPLEX HE PUBLISHES SCIENTIFIC PAPERS ON IT WITH GREEKLETTERED MATHEMATICAL EQUATIONS AND SUCH HEARTSTOPPING TITLES AS THE ROLE OF SURFACE VISCOSITY IN GAS DIFFUSION IN AQUEOUS FOAMS UNDERSTANDING FOAM HAS BECOME A SERIOUS BUSINESS FOR HEINEKEN ANHEUSERBUSCH COS OF ST LOUIS JAPAN'S KIRIN BREWERY CO AND OTHER MULTINATIONAL BREWERS WHO RESEARCH THE FIELD BREWING IS PART ART PART SCIENCE A NEW BATCH OF BARLEY A DIFFERENT FILTER ANY NUMBER OF SUBTLE CHANGES AT THE BREWERY CAN AFFECT HOW MUCH THE BEER FOAMS AND HOW LONG THE HEAD LASTS AND MULTINATIONAL BREWERS CARE PLENTY ABOUT THAT LIKE A COKE OR BIG MAC A HEINEKEN OR BUD IS SUPPOSED TO LOOK AND TASTE THE SAME ALL AROUND THE WORLD THE STANDARD HEINEKEN FORMULA SAYS A BEER'S HEAD SHOULD LAST FIVE MINUTES AFTER POURING TWENTY SECONDS MORE OR LESS AND THE BATCH IS REJECTED TO CONSUMERS FOAM IS A VERY IMPORTANT CHARACTERISTIC OF BEER MR RONTELTAP SAYS BUT ALAS IT VARIES FROM TIME TO TIME AND WE DON'T KNOW WHY THAT'S WHERE BEEROLOGY COMES IN SINCE HE BEGAN INTENSIVE RESEARCH IN 1989 MR RONTELTAP HAS LEARNED ENOUGH TO HELP HEINEKEN FINETUNE ITS BREWING PROCESS MAKING CORRECTIONS IF A BATCH OF BEER IS TURNING OUT TOO FLAT BUT HE AND NINE OTHER HEINEKEN COLLEAGUES ARE SEEKING DEEPER KNOWLEDGE OF FOAM COLLABORATING WITH FRENCH CHAMPAGNEMAKER MOET & CHANDON SA BEER AND CHAMPAGNE BUBBLE ALIKE AND AIDED BY RESEARCH GRANTS FROM THE DUTCH AND FRENCH GOVERNMENTS PERIODICALLY MR RONTELTAP PUBLISHES HIS RESULTS IN SUCH WEIGHTY JOURNALS AS COLLOIDS AND SURFACES AND SWAPS FINDINGS WITH HIS COMPETITORS AT INTERNATIONAL SCIENTIFIC CONFERENCES THOUGH WE DON'T PUBLISH EVERYTHING WE KNOW HE SMILES SLYLY AND BY NOW THE BEER SCIENTISTS KNOW PLENTY THANKS IN PART TO SOME HIGHTECH LAB TOOLS THEY'VE DEVELOPED TO POKE ELECTRIFY ILLUMINATE AND OTHERWISE TORMENT BEER FOAM THE PRIDE OF BEER TECHNOLOGY THE FOAM ANALYZER PERCHES ON A BENCH IN HEINEKEN'S LABORATORY HERE LIKE A DIPSOMANIACAL HUMMING BIRD POKING ITS LONG REEDY BEAK INTO A FOAMY BEAKER OF BEER NEARBY ANOTHER MACHINE IS MIXING TWO MORE FLASKS OF BEER FOR TESTING AND LEST THE MACHINES GET PARCHED ELEVEN CASES OF BEER ARE STACKED UNDER THE BENCH RUUD DE JONG A RESEARCHER FLIPS THE FOAM ANALYZER ON AND THE MACHINE'S LONG PROBOSCIS ACTUALLY A GLASS FIBER THAT DETECTS LIGHT BEAMS AS THEY BOUNCE OFF THE BEER BUBBLES PLUNGES DOWN THROUGH THE HEAD IN THE FLASK OF BEER JUST AS QUICKLY IT RETRACTS IT PAUSES 30 SECONDS THEN REPEATS A NEARBY COMPUTER DISPLAYS THE FINDINGS A SQUIGGLY GRAPH THAT SHOWS THE SPACING OF EVERY BUBBLE THE MACHINE'S PROBE SAW ON ITS WAY THROUGH THE FOAM BY COMPARING A SERIES OF THE GRAPHS MR DE JONG CAN SEE HOW THE SIZE AND DISTRIBUTION OF BUBBLES CHANGED AS THE BEER HEAD SLOWLY COLLAPSED HE AND HIS COLLEAGUES HAVE FOUND BEER FOAM TO BE PRETTY TOUGH STUFF COMPARED WITH THE FROTH ON SAY SOFT DRINKS CHAMP AGNE OR SOAP BEER IS MADE BY COOKING BARLEY AND WATER ADDING HOPS FOR FLAVOR AND LETTING YEAST FEED ON THE RESULTING WORT FOR FIVE TO 10 DAYS AS THE YEAST FEED THEY BURP ALCOHOL AND CARBON DIOXIDE INTO THE BEER BEER BUBBLES GET THEIR STRENGTH FROM BARLEY PROTEINS THAT THE YEAST LEAVE BEHIND THE STRINGY TANGLED MOLECULES OF PROTEIN ARRANGE THEMSELVES ON THE BUBBLE WALLS FORMING A TOUGH MESH OTHER MOLECULES PARTLY FROM THE HOPS MR RONTELTAP HYPOTHESIZES LASH THEMSELVES TO THE BARLEY PROTEINS ADDING MORE STRENGTH BUT THE SECRET OF GOOD FOAM IS IN THE POURING AND SERVING RATHER THAN IN THE BEER ITSELF WHEN BEER PASSES OVER A SURFACE THROUGH A BAR TAP OR ALONG THE WALLS OF A GLASS THE NORMALLY SLOW PROCESS BY WHICH IT RELEASES PENTUP CARBON DIOXIDE SPEEDS UP TINY NICKS AND SCRATCHES IN THE GLASS TRAP POCKETS OF GAS AND JUST AS RAINDROPS FORM ON DUST PARTICLES SO BUBBLES OF CARBON DIOXIDE GROW ON THESE DEFECTS WHEN THE BUBBLES ARE BIG ENOUGH THEY BREAK OFF AND FLOAT TO THE SURFACE THE PROCESS REPEATS AS NEW BUBBLES GROW IN THEIR PLACE IN A FEW SECONDS A TYPICAL BEER GLASS FORMS A HEAD OF A MILLION OR SO BUBBLES STACKED 50 TO 100 DEEP SEVERAL FACTORS EVENTUALLY DEFLATE THE HEAD IN PART FLUID DRAINS OUT OF IT DRYING THE BUBBLES UNTIL THEIR WALLS GET SO THIN THAT THEY BREAK MORE IMPORTANTLY THE BUBBLES LEAK CARBON DIOXIDE TO EACH OTHER AND TO THE AIR ABOVE THE BUBBLES IN THE TOP LAYER OF THE HEAD LEAK FIRST SHRINKING TO 2 OF THEIR ORIGINAL SIZE AS THEY SHRINK THEY MAKE ROOM FOR BUBBLES BELOW TO RISE THOSE BUBBLES IN TURN SHRINK THE PROCESS CONTINUES UNTIL ABOUT FIVE MINUTES LATER ONLY A THIN SCUM OF MINUSCULE BUBBLES REMAINS ANY LITTLE THING CAN INFLUENCE THE PROCESS A BEER TAP FOR INSTANCE MAKES THE BEST HEADS BECAUSE IT FORCES THE BEER OUT QUICKLY THE BUBBLES FORM FAST AND SMALL SMALLER BUBBLES TAKE LONGER TO DEFLATE STOUTS AND OTHER BIGFOAMING BEERS OFTEN GET AN EXTRA KICK FROM AN INJECTION OF HARMLESS NITROGEN GAS THAT MAKES FOR EVEN SMALLER LONGERLASTING BUBBLES IMPURITIES ESPECIALLY FATTY SUBSTANCES LIKE OIL OR SOAP CAN BE DEATH TO BUBBLES OILS REPEL WATER POKING HOLES IN THE BUBBLES HENCE THE RECOMMENDATION TO THOROUGHLY RINSE BEER GLASSES OF DETERGENT HEINEKEN USES SUCH RESEARCH TO OPTIMIZE ITS BREWING PROCESS IF IT BOILS THE WORT LESS VIGOROUSLY FOR INSTANCE IT LEAVES MORE PROTEIN MOLECULES INTACT AND PRODUCES TOUGHER BUBBLES OF COURSE SUCH TRICKS OF THE TRADE AREN'T NEW BUT CONTROLLING THEM PRECISELY IS SPEAKING OF THE TIME BEFORE THE SCIENTISTS GOT TO WORK IN BEERMAKING MR RONTELTAP SAYS A LOT OF THINGS WEREN'T KNOWN BEFORE AND OTHERS WE KNEW MORE EMPIRICALLY JUST BY TRIAL AND ERROR THE ANSWER TO MR RONTELTAP'S RIDDLE THE HEAD COLLAPSED BECAUSE THE OIL REPELLED THE WATER IN IT DRYING AND BURSTING THE BUBBLES THE FOAM CAME BACK BECAUSE THE GLASS BEADS PROVIDED MORE SURFACE AREA FOR BUBBLES TO FORM ON SEE RELATED LETTER LETTERS TO THE EDITOR BEER BUDDIES CONDUCT FIELD STUDY ON FOAM WSJ AUG 9 1993 9307070032 YY93 MM08 9308090049 930701 SOAKING 'EM SOME DEALERS IN GRAIN WATER IT MAKING IT WEIGH AND COST MORE SAYING DUST CONTROL IS AIM CONAGRA SPRAYS GRAIN AND IS BEING INVESTIGATED GOVERNMENT PREPARES A BAN BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL MYRTLE GROVE LA DEEP IN THE BELLY OF A GRAIN TERMINAL THAT TOWERS OVER THE MISSISSIPPI RIVER HERE A CURTAIN OF WATER CASCADES ONTO A CONVEYOR BELT CARRYING SOYBEANS THE SPRAY AS POWERFUL AS A BATHROOM SHOWER AT FULL BLAST IS CONTROLLED SO PRECISELY THAT THE BEANS ABSORB THE WATER WITHOUT CHANGING APPEARANCE BY THE TIME AN OCEANGOING VESSEL HAS BEEN FILLED WITH THEM THE BEANS WILL BE 1775 METRIC TONS HEAVIER THAT MEANS 37000 WORTH OF WHAT THE SOYBEAN BUYER GETS IS ADDED WATER AN INVESTIGATION BY THE WALL STREET JOURNAL HAS FOUND THAT SOPHISTICATED WATERING SYSTEMS SUCH AS THIS AS WELL AS MUCH CRUDER VERSIONS ARE SPREADING FROM GULF OF MEXICO PORTS AND THE ROLLING WHEATLAND OF THE PACIFIC NORTHWEST TO THE HEART OF THE MIDWEST CORN BELT NOBODY AGREES ON HOW MUCH GRAIN IS DOUSED BUT FEW DISPUTE THAT THE PRACTICE IS INCREASING AND GOVERNMENT OFFICIALS WORRY THAT THE COST TO FOREIGN BUYERS CONSUMERS AND EVEN UNCLE SAM COULD REACH HUNDREDS OF MILLIONS OF DOLLARS ANNUALLY THE PRACTICE ALSO COULD THREATEN THE REPUTATION OF ONE OF AMERICA'S BIGGEST EXPORTING INDUSTRIES MOST IMPORTERS DON'T SEEM TO BE AWARE OF IT BUT A FEW ARE NOTICING SOUTH AFRICA WHICH MONITORS CROPS FOR DANGEROUS MOLDS TOLD THE US LAST YEAR IT WOULDN'T IMPORT CORN FROM THREE PORTS WHERE WATER IS USED SOME TRADING FIRMS IN JAPAN THE BIGGEST BUYER OF US CROPS HAVE DISCREETLY CALLED WASHINGTON'S ATTENTION TO THE PRACTICE SOME GRAIN EXECUTIVES ESTIMATE THAT 5 TO 10 OF US GRAIN THAT IS EXPORTED IS WETTED IN THE PACIFIC NORTHWEST WHERE THE WHEAT THAT FARMERS SELL TO ELEVATORS IS SOME OF THE DRIEST IN THE WORLD THE MOISTENED CROP THAT SOME ELEVATORS ALONG THE SNAKE RIVER SUBSEQUENTLY DUMP ONTO ASIABOUND BARGES IS SO SOGGY THAT EQUIPMENT BENDS OR EVEN BREAKS UNDER THE WEIGHT I'LL CALL UP AND COMPLAIN SAYS RAY HICKEY PRESIDENT OF TIDEWATER BARGE LINES INC IN VANCOUVER WASH THEY'LL SAY IT'S DUST CONTROL IN THAT REMARK LIES A KEY AMBIGUITY ABOUT THE PRACTICE WETTING DOWN GRAIN WITH WATER IS IN FACT A GOVERNMENTSANCTIONED METHOD OF CONTROLLING GRAIN DUST WHICH CAN BUILD TO EXPLOSIVE PROPORTIONS IN ONE YEAR ALONE 1977 20 GRAINDUST EXPLOSIONS IN THE US TOOK 65 LIVES THE QUESTION IS ARE ELEVATORS OR GRAIN COMPANIES THAT SPRAY WATER ON GRAIN DOING SO ONLY TO CONTROL DUST OR ADDING MORE WATER TO INCREASE THE GRAIN'S WEIGHT GRAIN AND SOYBEANS ARE ALLOWED TO CONTAIN A CERTAIN PERCENTAGE OF MOISTURE 15 IN THE CASE OF CORN THUS A CORN BUYER HAS NO RIGHT TO EXPECT THE GRAIN IT BUYS TO BE LESS THAN 15 MOISTURE THIS DOES NOT MEAN HOWEVER THAT A DEALER WHO HAPPENS TO OWN 145MOISTURE CORN IS FREE TO RAISE IT TO 15 BY SPRAYING IT DOING SO IS BARRED AS ECONOMIC ADULTERATION THE US DEPARTMENT OF AGRICULTURE IS ABOUT TO MAKE THE BAR MORE EXPLICIT SECRETARY MIKE ESPY HAS JUST PROPOSED A BAN ON NEARLY ALL USES OF WATER ON GRAIN USDA OFFICIALS SAY THE MOVE STEMS IN PART FROM A YEARLONG INVESTIGATION OF CONAGRA INC WHOSE PEAVEY CO GRAIN HANDLING UNIT HAS SPRAYED WATER ON AT LEAST A BILLION BUSHELS OF US CROPS IN RECENT YEARS CONAGRA SAYS IT USES WATER ONLY TO CONTROL GRAIN DUST YET THE NATION'S BIGGEST GRAIN DEALER CARGILL INC USES NO WATER IT CONTROLS DUST BY SPRAYING ON A THIN FILM OF MINERAL OIL A METHOD SO EFFECTIVE IT CONTROLS DUST WITHOUT ADDING SIGNIFICANT WEIGHT THE USDA'S OFFICE OF INSPECTOR GENERAL IS EXAMINING WHETHER CONAGRA'S USE OF WATER GOES BEYOND DUST CONTROL AMONG OTHER THINGS INVESTIGATORS ARE STUDYING ACTIVITIES AT THE OMAHA NEBBASED COMPANY'S FACILITIES AT KEARNEY NEB KALAMA ORE AND PAULINA LA AIDED BY A WHISTLEBLOWERDESCRIBED BY A CONAGRA SPOKESWOMAN AS A DISGRUNTLED FORMER EMPLOYEE INVESTIGATORS ALSO ARE PROBING GRAIN ELEVATORS CONAGRA OWNS IN INDIANA PEOPLE FAMILIAR WITH THE INQUIRY SAY AUTHORITIES HAVE A VIDEOTAPE SHOWING A CRUDE WATERING SYSTEM AT THE TERRE HAUTE ELEVATOR CONAGRA SAYS IT HAS DISABLED THE SYSTEM IS COOPERATING AND HAS FIRED THE ELEVATOR'S MANAGER AFTER A GRAIN MISWEIGHING SCANDAL IN THE MID1970S FEDERAL EMPLOYEES WERE STATIONED AT US EXPORT TERMINALS TO COLLECT AND GRADE SAMPLES OF GRAIN FOR FOREIGN BUYERS BUT THE SUPERVISION OF INTERIOR ELEVATORS IS LOOSER MANY ARE TRUSTED TO COLLECT THEIR OWN SAMPLES AND SEND THEM TO A LAB FOR ANALYSIS THE GRADE HELPS SET THE PRICE THE CUSTOMER PAYS CONAGRA'S ELEVATORS IN INDIANA HAD THEIR SAMPLES GRADED BY SOUTHERN ILLINOIS GRAIN INSPECTION SERVICE INC ITS PRESIDENT HOLGER DANIELSEN SAYS SEVERAL EMPLOYEES HAVE BEEN INTERVIEWED BY FEDERAL AUTHORITIES HE SAYS HE HAS BEEN TOLD HIS FIRM ISN'T A TARGET THE USDA INSPECTOR GENERAL'S OFFICE IS EXPECTED TO SEND A REPORT OF ITS INQUIRY TO THE JUSTICE DEPARTMENT WITHIN DAYS PROSECUTORS MAY TAKE MONTHS TO DECIDE WHETHER TO PURSUE THE COMPLICATED CASE ONE PROBLEM IS THAT THE GOVERNMENT HASN'T DRAWN A LINE TO DISTINGUISH THE AMOUNT OF WATER NEEDED TO MAKE A DUSTSUPPRESSING VAPOR FROM THAT WHICH SOAKS CUSTOMERS THE TEMPTATION TO USE MORE WATER IS ENORMOUS MOST GRAIN ELEVATORS MAKE A PROFIT OF JUST A PENNY OR TWO ON EACH BUSHEL THEY HANDLE AN ELEVATOR COULD REAP ANOTHER THREE CENTS FROM A SOYBEAN BUSHEL BY INCREASING ITS WEIGHT IN WATER BY JUST HALF A PERCENTAGE POINT THAT WOULD MEAN CHICKEN GROWERS PAY MORE FOR FEED MILLERS PAY MORE FOR WHEAT AND ETHANOL PROCESSORS PAY MORE FOR CORN ALL EVENTUALLY COMING OUT OF THE CONSUMER'S POCKET THIS IS A MATTER WE ARE VERY CONCERNED ABOUT SAYS A SPOKESMAN FOR POULTRY PROCESSOR TYSON FOODS INC A BIG CORN USER WE REFUSE TO DEAL WITH ANYONE WHO USES WATER ON GRAIN THE AGRICULTURE DEPARTMENT IS WORRIED ABOUT WATER BECAUSE IT PAYS ELEVATORS TO STORE CROPS COVERED BY PRICESUPPORT PROGRAMS BY WATERING ELEVATORS CAN RAISE THEIR INVENTORY'S WEIGHT AND MAKE IT APPEAR THEY ARE STORING MORE BUSHELS GRAIN AND SOYBEANS ARE MEASURED BY WEIGHT A BUSHEL DESIGNATING A SET NUMBER OF POUNDS IF IT ISN'T STOPPED IT COULD BECOME UNIVERSAL SAYS JOHN L MCCLENATHAN GRAIN MARKETING VICE PRESIDENT AT GROWMARK INC A MIDWEST ELEVATOR COOPERATIVE THAT FAVORS A WATER BAN THERE IS A SIGNIFICANT INCENTIVE TO OPEN THE VALVE ON THE WATER PIPE TO PUT ON THREE OR FOUR TIMES WHAT IS NEEDED FOR DUST CONTROL ONE FEAR IS THAT THE PRACTICE IS SPREADING TO FARMERS FARMERS DON'T HAVE AN EXCUSE TO WATER THEIR CROPS BECAUSE THEY DON'T HANDLE ENOUGH TO WORRY ABOUT GRAINDUST EXPLOSIONS BUT A DECADE AGO AN OKLAHOMA STATE UNIVERSITY PROFESSOR DESIGNED A SIMPLE WATERING SYSTEM FOR FARMERS FARMER MICHAEL LEWIS OF ARKANSAS CITY KAN USED THE DESIGN TO BUILD A CONTRAPTION FROM LITTLE MORE THAN A GARDEN HOSE VALVE AND AUGER HE CLAIMS HE REAPED AN EXTRA 1400 BY DOUSING HIS WHEAT CROP MR LEWIS WHO HAS STUMPED THROUGH CHINA PROMOTING US WHEAT SAYS SEEING A US EXPORT ELEVATOR USE WATER MADE HIM FEEL JUSTIFIED WHAT I DID GOT INTO THE GRAIN INDUSTRY'S POCKET SNICKERS MR LEWIS WHO NOW RAISES CATTLE OUTSIDE NEZ PERCE IDAHO FARMER BOB BRANSON THINKS IT WOULD BE IMMORAL TO RAISE THE MOISTURE OF HIS WHEAT IF IT HAPPENED TO BE DRIER THAN IT HAS TO BE BUT HE ADDS WE'RE LOSING MONEY BY SELLING WHEAT THAT THE BIG GUYS CAN THEN WET IF THE GOVERNMENT DOESN'T CLEAN THIS UP WE SHOULD GEAR UP TO DO THE SAME THING HERE'S HOW ELEVATORS THAT USE WATER TAKE ADVANTAGE BECAUSE THE BIGGEST CAUSE OF SPOILED GRAIN IS MOISTURE ELEVATORS SET MOISTURE MAXIMUMS SOYBEAN FARMERS FOR EXAMPLE MAY BE PENALIZED IF WATER MAKES UP MORE THAN 13 OF THEIR BEANS BY WEIGHT THE LIMIT FOR WHEAT IS GENERALLY 135 AND FOR CORN 15 WHEN CORN IS NEWLY HARVESTED IT USUALLY IS SOMEWHAT WET AND HAS TO BE DRIED DOWN TO 15 WITH PROPANE HEATERS BUT MUCH OF THE SOYBEAN AND WHEAT CROP IS BELOW THE MOISTURE CEILING WHEN HARVESTED THE DRIER THE CROP THE LESS EACH KERNEL WEIGHS AND THE MORE KERNELS A FARMER NEEDS TO MAKE A 60POUND BUSHEL A FARMER SELLING WHEAT THAT'S ONLY 11 MOISTURE MISSES OUT ON PERHAPS 10 CENTS A BUSHEL OVER WHAT HE WOULD GET IF THE WHEAT HAD THE MAXIMUM 135 A FARMER HAULING 10MOISTURE SOYBEANS TO THE ELEVATOR MISSES OUT ON SOME 21 CENTS A BUSHEL AT CURRENT PRICES THESE CROPS GIVE ELEVATORS ROOM TO ADD WATER AND STILL STAY UNDER THE LIMIT THE REAL TRAVESTY IS THE LOST MONEY TO GOOD FARMERS SAYS LOWELL HILL A UNIVERSITY OF ILLINOIS PROFESSOR AND EXPERT ON GRAIN QUALITY THE FIRST ALARM ABOUT ELEVATORS USING WATER WAS SOUNDED SIX YEARS AGO INTRIGUED BY SCUTTLEBUTT ABOUT DAMAGED BARGES OF WHEAT LLOYD BROWN OF THE USDA'S FEDERAL GRAIN INSPECTION SERVICE TRAVELED UP THE SNAKE RIVER IN WASHINGTON STATE HE FOUND FIVE BARGELOADING ELEVATORS WATERING WHEAT A MEMO NAMING THEM WAS ROUTED TO THE FOOD AND DRUG ADMINISTRATION WHICH OVERSEES A FEDERAL BAN ON ECONOMIC ADULTERATION OF GRAIN BUT THE GOVERNMENT HAD JUST BEGUN ALLOWING ELEVATORS TO USE WATER AS A CHEAP WAY TO MEET DUSTCONTROL RULES WITHOUT SOME CLEAR DIVIDING LINE SAYS AN FDA OFFICIAL AN INVESTIGATION WOULD HAVE BEEN TOO RESOURCE INTENSIVE SO IT IS BUSINESS AS USUAL AT ALMOTA ELEVATOR CO ALONG THE SNAKE RIVER THIS IS OUR WATER LINE SAYS OPERATIONS MANAGER MARK BOOTH POINTING AT A BLACK PIPE IN THE MUSTY BASEMENT OF THE 135FOOTTALL ELEVATOR THE PIPE RUNS FROM A WELL THROUGH THE ELEVATOR TO A GRAIN SPOUT DANGLING OVER THE RIVER INSIDE THE SPOUT OUT OF VIEW AND BEYOND THE POINT WHERE DUST IS A SAFETY CONCERN WATER MEETS WHEAT AND DROPS ONTO BARGES A RED LOGBOOK LIES OPEN IN THE GLASSENCLOSED CONTROL BOOTH THAT HANGS OVER THE DOCK WHERE 100 BARGES OR SO TIE UP IN A GOOD YEAR THE LOG LISTS BARGES RECEIVING UP TO 4600 GALLONS OF WATER ENOUGH TO CONCEIVABLY INFLATE THE WEIGHT AND THUS VALUE OF A BARGELOAD OF WHEAT BY ROUGHLY 2000 GARY BEHYMER MANAGER OF THE CLOSELY HELD COMPANY CONTENDS THAT FIGURE IS TOO HIGH BECAUSE SOME WATER EVAPORATES HE ALSO SAYS ONE AIM IS TO KEEP DUST FROM POLLUTING THE AIR OR RIVER IT IS MORE DUST CONTROL THAN ANYTHING HE MAINTAINS ADDING THAT THE WATER IS TURNED OFF IF CUSTOMERS REQUEST IT FARTHER DOWN THE RIVER THE CENTRAL FERRY TERMINAL ASSOCIATION SPRAYS WATER ON WHEAT AS IT IS DUMPED FROM TRUCKS INTO THE ELEVATOR AND FROM THE ELEVATOR ONTO BARGES GENERAL MANAGER KARL R HAGMAN SAYS THE PURPOSE IS DUST CONTROL HE SAYS HE WANTS LIMITS ON HOW MUCH ELEVATORS CAN USE IT MAKES US LOOK LIKE CROOKS HE SAYS IT IS CONAGRA THAT MANY BIG GRAIN COMPANIES ARE ANGRY AT CONAGRA'S SPRAYING SYSTEM GIVES IT SUCH A FINANCIAL ADVANTAGE THAT THE REST OF THE INDUSTRY WILL BE FORCED TO FOLLOW SUIT THEY SAY AND THE PRACTICE IS SO HARD TO DETECT THAT COMPANIES ARE BOUND TO CHEAT UNLESS THIS IS OUTLAWED THERE WILL BE PEOPLE WILLING TO DO THAT SAYS JAESON BROWN A CONTINENTAL GRAIN CO EXECUTIVE WHO HAS SEEN CONAGRA'S WATER SYSTEM IN ACTION AT MYRTLE GROVE LA THIS COULD TURN INTO A BIG PROBLEM A 1992 LETTER TO THE AGRICULTURE DEPARTMENT FROM THE US UNIT OF PARISBASED LOUIS DREYFUS CORP SAYS IN PART FAILURE TO ACT ON THIS ISSUE WILL JEOPARDIZE THE REPUTATION OF US GRAINS IN WORLD MARKETS AND RESULT IN LOST DEMAND FOR US GRAIN EXPORTS CARGILL RECENTLY BEGAN REQUIRING ELEVATORS ALONG THE SNAKE RIVER TO CERTIFY THAT THEY HADN'T ADDED WATER TO THE GRAIN IT BUYS THOUGH IT'S IMPOSSIBLE TO GUARANTEE COMPLIANCE ARCHERDANIELSMIDLAND CO ALSO FAVORS A WATER BAN CONAGRA EXECUTIVES SAY THE COMPANY HAS NEVER RECEIVED A COMPLAINT FROM A FOREIGN BUYER ABOUT WATER BUT IN THE SHADOW OF THE MYRTLE GROVE TERMINAL WHICH IT OPERATES IN A JOINT VENTURE WITH A UNIT OF ITALIAN CONGLOMERATE FERRUZZI FINANZIARIA SPA A SHIP IS WAITING TO TAKE ON SOYBEANS FOR A FIRM THAT FOR THE FIRST TIME IS ASKING THAT THE BEANS BE KEPT DRY EXPORTERS HAVE TO NOTE ON GRAIN DOCUMENTS WHETHER WATER HAS BEEN ADDED THE RULE DOESN'T APPLY TO INTERIOR ELEVATORS IN THE TERMINAL CONTROL ROOM JAMES L SWANSON A VICE PRESIDENT AT CONAGRA'S PEAVEY UNIT PATS THE DIGITAL EQUIPMENT CORP COMPUTER THAT CONTROLS THE WATER NOZZLES THE GRAIN INDUSTRY IS A DANGEROUS BUSINESS HE SAYS BANNING MY SYSTEM WOULD BE THROWING OUT THE BABY WITH THE BATH WATER HE IS INSTALLING THE SYSTEM WHICH IS LARGELY HIS INVENTION ACROSS THE COUNTRY AT CONAGRA ELEVATORS IT CONTROLS NOZZLES SO THE PERCENTAGE OF SOYBEANS THAT IS WATER CLIMBS AS MUCH AS 029 PERCENTAGE POINT ALTHOUGH THE GOVERNMENT HAS NEVER ESTABLISHED A WATERING STANDARD CONAGRA SAYS ITS SYSTEM IS BASED ON A 1982 REPORT BY USDA SCIENTISTS THAT RAISING CORN'S MOISTURE LEVEL BY 03 PERCENTAGE POINT CUTS DUST BY 80 CONAGRA ADDS NO MORE WATER THAN 03 AT A TIME BUT IT TYPICALLY WATERS SOYBEANS TWICE MR SWANSON RETRACING A TOUR HE RECENTLY GAVE TO AN AGENT FROM THE USDA'S INSPECTOR GENERAL'S OFFICE NOTES THAT NONE OF THE ELEVATORS HE HAS FITTED WITH HIS WATER SYSTEM HAVE EXPLODED AMBLING THROUGH THE TERMINAL HE CORRALS WORKERS FOR TESTIMONIALS THERE IS LESS CHANCE OF AN EXPLOSION SO I FEEL SAFER SAYS BENITO CASTIGLIONE A 25YEAR VETERAN IN AN OFFICE WITH PICTURES OF GRAIN TERMINALS AND A NO SNIVELIN SIGN ON THE WALLS MR SWANSON DOES THE MATH TAKING EVAPORATION INTO ACCOUNT HIS SYSTEM CAN COST THE BUYER OF A 25 MILLIONBUSHEL SHIPLOAD OF GRAIN AN EXTRA 37000 THE CUSTOMER PAYS FOR ADDED WATER HE SAYS SCRATCH EVAPORATION FROM THE CALCULATIONS AND THE WATER BILL HITS 78000 MR SWANSON SAYS CONAGRA USES HIS WATERING SYSTEM ONLY BECAUSE IT SAVES LIVES ASKED WHY HE DIDN'T DEVELOP A DIFFERENT DUSTSUPPRESSION SYSTEM HE SAYS MAYBE I'M SMARTER THAN THE REST OF THE INDUSTRY THE LAW ABOUT ECONOMIC ADULTERATION IS SO VAGUE THAT THE GOVERNMENT WOULD HAVE A HARD TIME PROVING MR SWANSON WRONG PROSECUTORS ALREADY HAVE FAILED WITH A SMALLER COMPANY LAST AUGUST THE USDA INSPECTOR GENERAL AND NEBRASKA AUTHORITIES RAIDED A CLOSELY HELD FOXLEY GRAIN CO ELEVATOR IN FREMONT ARMED AND WEARING FLAKVESTS AGENTS HELD A DOZEN WORKERS IN A ROOM FOR AN HOUR AND CONFISCATED RECORDS THE COMPANY HAD RIGGED A HOSE TO POUR WATER ONTO A BELT CARRYING GRAIN AN EMPLOYEE WAS LATER FINED AS AN ACCESSORY TO FALSIFYING GRAIN WEIGHT DOCUMENTS AND FIRED BUT A FEDERAL GRAND JURY IN OMAHA DIDN'T INDICT THE COMPANY FOR ECONOMIC ADULTERATION JOHN HOUSTON FOXLEY CHIEF OPERATING OFFICER SAYS HE TESTIFIED THE COMPANY USED JUST ENOUGH WATER TO CONTROL DUST HE ADDS THAT MOST SMALL ELEVATORS AROUND THERE DO LIKEWISE THE CASE IS OFFICIALLY OPEN BUT ESSENTIALLY DEAD SINCE WITHOUT SOME STANDARD DRAWING A LINE THAT EMPLOYEES CROSSED PROSECUTORS FACE AN ENORMOUS HURDLE IN PROVING INTENT TO COMMIT A CRIME THE GOVERNMENT FACES A SIMILAR HURDLE WITH CONAGRA'S PEAVEY UNIT WHICH IS WHY AGRICULTURE SECRETARY ESPY IS PROPOSING A WATER BAN TO SETTLE THE MATTER SAY SOME PEOPLE FAMILIAR WITH THE INVESTIGATION I CONCEDE THAT THE RULES AND REGULATIONS ARE SO DARN IFFY THAT IT IS VERY HARD TO POLICE WATER SAYS A USDA OFFICIAL PEAVEY WILL BE THE TEST CASE SEE RELATED LETTER LETTERS TO THE EDITOR REDUCING EXPLOSIONS IN GRAIN ELEVATORS WSJ AUG 9 1993 9307010171 YY93 MM08 9308090026 930706 THE BEST LAID PLANS MANY COMPANIES TRY MANAGEMENT FADS ONLY TO SEE THEM FLOP IN PRACTICE TRENDY THEORIES OFTEN NEED REJIGGERING TO GET INTENDED RESULTS LESSONS FROM THE PHARAOHS BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL PROCESS REENGINEERING BENCHMARKING TOTAL QUALITY MANAGEMENT BROADBANDING WORKER EMPOWERMENT SKILLBASED PAY THE LABELS ABOUND WHEN IT COMES TO THE TRENDY REMEDIES EXECUTIVES ARE USING TO TRY TO BREATHE NEW LIFE AND COMPETITIVE FIRE INTO THEIR COMPANIES BUT WHILE THESE APPROACHES MAY PROMISE MORE MOTIVATED WORK FORCES AND GREATER PRODUCTIVITY THE RESULTS OFTEN FALL FAR SHORT WHEN THIS HAPPENS COMPANIES FIND THEY MUST SHARPLY MODIFY ABANDON OR FIND ANTIDOTES TO PROGRAMS THAT BRING SWEEPING CHANGES TO ORGANIZATIONAL AND HUMANRESOURCE MANAGEMENT A FEW YEARS AGO PACIFIC GAS & ELECTRIC CO EMBRACED A MANAGEMENT TECHNIQUE CALLED BENCHMARKING UNDER BENCHMARKING COMPANIES SEND EMPLOYEES TO VISIT OTHER FIRMS TO LEARN NEW WAYS OF HANDLING BUSINESS PROBLEMS FROM INVENTORY CONTROL TO DATA PROCESSING BUT UNTIL PG&E SET SPECIFIC PARAMETERS DESCRIBING WHAT IT WANTED TO FIND OUT BENCHMARKING WAS A WASTE OF TIME SAYS WILLIAM BLASTIC QUALITY IMPROVEMENT MANAGER WE WERE JUST INDUSTRIAL TOURISTS JOHNSON & JOHNSON WAS A PIONEER OF WHAT HAS SINCE BECOME BROADBANDING THE ELIMINATION OF MULTIPLE SALARY GRADES IN FAVOR OF JUST A FEW TO FOSTER MOVEMENT AMONG JOBS IT SCRAPPED THE EXPERIMENT AFTER A YEAR WHEN NEARLY A THIRD OF THE 6000 AFFECTED EMPLOYEES COMPLAINED MANY DIDN'T LIKE THE LACK OF A CLEAR PATH UPWARD OTHERS WEREN'T HAPPY ABOUT BEING LUMPED IN A JOB BAND WITH PEOPLE THEY HAD SURPASSED MANAGERS IN AMERICAN EXPRESS CO'S INTERNATIONAL DIVISION WERE DEMORALIZED LATE LAST YEAR BY ONE OF THE SIDE EFFECTS OF REENGINEERING UNDER REENGINEERING A COMPANY LOOKS ANEW AT HOW TO ORGANIZE THE WORK PROCESS TO MORE EFFECTIVELY CREATE ITS PRODUCT OR SERVICE FOR CUSTOMERS OFTEN LAYERS OF JOBS ARE ELIMINATED WHICH AT AMERICAN EXPRESS INCLUDED MANY OF THE JOBS MANAGERS HAD LOOKED TO AS THEIR NEXT PROMOTION THE COMPANY RESPONDED BY MAKING REMAINING JOBS MORE ATTRACTIVE FOR LATERAL MOVEMENT BY SPELLING OUT WHAT SKILLS THEY DEVELOP FOR FUTURE PROMOTIONS WE'VE RECOGNIZED THE POSSIBLE PAYOUTS OF NEW APPROACHES TO HUMAN RESOURCES SAYS GEORGE MILKOVICH A PROFESSOR OF HUMANRESOURCE MANAGEMENT AT CORNELL UNIVERSITY BUT WE DON'T SEEM TO RECOGNIZE THERE ARE POTENTIAL DOWNSIDES SOME OBSERVERS HAVE THEIR DOUBTS ABOUT THE UPSIDE AS WELL GEORGE BAILEY A DIRECTOR OF SIBSON & CO A PRINCETON NJ MANAGEMENT CONSULTING FIRM SAYS THE SUCCESS RATE OF ANY OF THESE APPROACHES IS PRETTY LOW HARVARD ECONOMICS PROFESSOR JAMES MEDOFF ADDS THAT HE KNOWS OF NO EMPIRICAL EVIDENCE THAT ANY OF THESE THINGS INCREASE PRODUCTIVITY CITING AN ELECTRIC POWER RESEARCH INSTITUTE SURVEY OF MORE THAN 300 LARGE COMPANIES IN 1991 MR BAILEY SAYS THAT THE SATISFACTION LEVELS FOR EACH OF MORE THAN A DOZEN MANAGEMENT FADS FROM BENCHMARKING TO TEAM MANAGEMENT WERE ONLY BETWEEN 35 AND 60 AMONG THE EXECUTIVES WHO IMPLEMENTED THE PROGRAMS TOTAL QUALITY MANAGEMENT WHICH CALLS ON EMPLOYEE TEAMS TO DEVISE WAYS OF IMPROVING THEIR OWN PRODUCTIVITY RECEIVED THE HIGHEST SATISFACTION LEVELS FOLLOWED BY PAY FOR PERFORMANCE WITH ABOUT 40 SATISFACTION RATES HIS FIRM'S OWN INTERVIEWS WITH CHIEF EXECUTIVES OF 60 LARGE COMPANIES THIS SPRING SHOWED THAT MOST HAD TRIED AT LEAST THREE SUCH PROGRAMS BUT STILL FELT THE NEED TO TRY ADDITIONAL APPROACHES TO LIFT PERFORMANCE MEANWHILE WORKERS ARE SAYING STOP WITH THE FADS NO MORE POSTERS SEMINARS AND TRAINING CLASSES' SAYS MR BAILEY BASED ON 4000 FOCUS GROUPS HIS FIRM HAS CONDUCTED OVER THREE YEARS EMPLOYEES AS WELL AS CUSTOMERS RATE THE EFFECTIVENESS OF THESE MANAGEMENT FADS AT BETWEEN JUST 10 TO 20 HE ADDS TO BE SURE MANY BORNAGAIN COMPANIES HAVE SEEN THEIR CONVERSIONS TO NEW MANAGEMENT THEOLOGIES PRODUCE BIG GAINS IN PRODUCTIVITY AND THOUGH TRIAL AND ERROR OFTEN ACCOMPANY INTRODUCTION OF NEW SYSTEMS ENOUGH COMPANIES ARE SUCCEEDING TO PROMPT OTHERS TO GIVE THEM A TRY BROADBANDING FOR INSTANCE IS THE HOTTEST THING IN COMPENSATION SAYS KENAN ABOSCH OF HEWITT ASSOCIATES A LINCOLNSHIRE ILL COMPENSATION CONSULTING FIRM IN THEORY THE SHIFT AWAY FROM MULTIPLE SALARY GRADES IS AIMED AT FOSTERING GREATER FLEXIBILITY FOR A COMPANY IN MOVING WORKERS ABOUT AND PAYING FOR INDIVIDUAL SKILLS AT A RECENT CONFERENCE 80 OF THE 500 HUMANRESOURCE MANAGERS THAT MR ABOSCH ADDRESSED IN ONE SESSION SAID THEY WERE CONSIDERING USING THE SYSTEM WITHIN THE NEXT YEAR SIMILARLY TOWERS PERRIN A VALHALLA NY COMPENSATION CONSULTING FIRM FOUND IN A SURVEY THIS SPRING OF 1800 COMPANIES THAT WITHIN THE NEXT YEAR 25 OF THEM WILL BE PAYING WORKERS FOR LEARNING EXTRA SKILLS UP FROM 10 THAT DO SO NOW THE GURUS OF SOME OF THE MOST POPULAR NEW MANAGEMENT SYSTEMS ACKNOWLEDGE THAT THEIR APPROACHES OFTEN FAIL IN PRACTICE BUT THEY SAY THE SYSTEMS AREN'T TO BLAME A LOT OF PEOPLE EMBARK ON REENGINEERING BUT DON'T GO ANYWHERE BECAUSE OF FAILURES OF INTELLECT OR COURAGE SAYS MICHAEL HAMMER COAUTHOR OF A NEW BOOK ON THE PROCESS COMPANIES THAT UNFURL THE BANNER AND MARCH INTO BATTLE WITHOUT COLLAPSING JOB TITLES CHANGING THE COMPENSATION POLICY AND INSTILLING NEW ATTITUDES AND VALUES GET LOST IN THE SWAMP BASED ON PUBLISHED SURVEYS ENGELHARD CORP KNEW FROM THE START THAT MOST REENGINEERING EFFORTS DON'T REACH THEIR GOALS STILL IT WAS UNPREPARED FOR SOME OF THE ROADBLOCKS IT ENCOUNTERED THE ISELIN NJ SPECIALTY CHEMICALS CONCERN BEGAN RESTRUCTURING ITS BUSINESS OPERATIONS ALONG PROCESS RATHER THAN FUNCTIONAL LINES A YEAR AND A HALF AGO FOR INSTANCE A MANAGER MIGHT BE RESPONSIBLE FOR FOLLOWING AN ORDER THROUGHOUT THE COMPANY AS IT MOVED FROM DEPARTMENT TO DEPARTMENT SAY FROM MANUFACTURING TO SHIPPING IT'S BEEN ANYTHING BUT SMOOTH SAYS STEPHEN POOK VICE PRESIDENT OF QUALITY PROCESS REDESIGN AND INFORMATION SERVICES EXPLAINING THE GOALS AND WORKINGS OF THE NEW SYSTEMS TO EMPLOYEES AND THEN GETTING THEIR COOPERATION IS THE TOUGHEST PART SAYS MR POOK IT MEANS CREATING NEW TURF BOUNDARIES IN SUCH AREAS AS NEW PRODUCT DEVELOPMENT AND ORDER FULFILLMENT FROM DAY ONE YOU'RE IN UNCHARTED WATERS BECAUSE THERE AREN'T MANY SUCCESS MODELS SOME COMPANIES OPT OUT WHEN THEY HIT A WALL OCEAN SHOWBOAT INC AN ATLANTIC CITY NJ CASINO COMPANY HAS CONVERTED FROM TOTAL QUALITY MANAGEMENT TO THE LEARNING ORGANIZATION WHICH CALLS ON EMPLOYEES TO ACQUIRE NEW SKILLS TO PROMOTE COMPANY GROWTH AND JOB SECURITY SAYS PAUL HARRIS VICE PRESIDENT THE REASON THE TOTAL QUALITY MANAGEMENT TEAMS RAN OUT OF STEAM AFTER KEY EMPLOYEES BECAME LOATH TO SUGGEST ANY MORE WAYS TO ELIMINATE BUREAUCRACY THEY FEARED THEIR JOBS WOULD BE ON THE LINE EVEN RELATIVELY SIMPLE EFFORTS TO WRING OUT INEFFICIENCIES CAN GO AWRY IN 1991 DUPONT CO'S FIBERS DIVISION DROPPED A PROFITSHARING PLAN FOR 20000 EMPLOYEES AFTER MANY COMPLAINED BECAUSE THERE WAS NO PAYOUT FOR 1990 THEY HAD PREVIOUSLY AGREED TO HAVE RAISES SCALED BACK BY 2 A YEAR FOR A THREEYEAR PERIOD FOR THE CHANCE TO EARN UP TO THREE TIMES THAT AMOUNT IN PROFIT SHARING IN THE FIRST TWO YEARS THE EMPLOYEES CAME OUT AHEAD BUT WHEN PROFITS FELL TO THE POINT WHERE THERE WAS NO PAYOUT MANY TURNED AGAINST THE PLAN SIMILARLY INTERNATIONAL BUSINESS MACHINES CORP THOUGHT IT WAS ONTO A GOOD THING IN HIRING BACK AS CONSULTANTS THOUSANDS OF FORMER EMPLOYEES WHO HAD TAKEN EARLYRETIREMENT OPTIONS BUT EVEN THOUGH IBM WAS SAVING MILLIONS BY NOT PAYING BENEFITS IT IS NOW SCALING BACK ITS USE OF THESE CONSULTANTS CALLING A DEPARTMENT TOGETHER SAYING YOU HAVE TO ELIMINATE JOBS AND THEN HIRING SOME BACK WOULD SEND A MIXED MESSAGE IF YOU'RE BEING TRUE TO YOUR MISSION TO CUT OUT CERTAIN WORK SAYS A SPOKESMAN MIDCOURSE ADJUSTMENTS ARE OFTEN NECESSARY WHEN TORONTOBASED NORTHERN TELECOM LTD ADOPTED A BROADBANDING PLAN IN WHICH 54 GRADES WERE COMPRESSED TO 13 NONUNION EMPLOYEES BALKED AT MAKING LATERAL MOVES THAT STILL INVOLVED A CAREER RISK ULTIMATELY THE COMPANY HAD TO GIVE RAISES TO GET EMPLOYEES TO TAKE SOME JOBS JOHNSON & JOHNSON WHICH SCRAPPED ITS BROADBANDING AFTER EMPLOYEE COMPLAINTS HAS ADOPTED A SYSTEM AT THE OPPOSITE END OF THE SPECTRUM NOW IT BASES ITS PAY LEVELS ON PAY AT 300 OTHER JOBS IN THE MARKETPLACE NOW WE DON'T GET HUNG UP ON WHETHER A JOB IS A HIGHER LEVEL SAYS ROBERTA OBLER DIRECTOR OF CORPORATE COMPENSATION SKILLBASED PAY ANOTHER TRENDY MANAGEMENT SCHEME CAN BACKFIRE AS WELL UNDER THIS SYSTEM COMPANIES INCREASE PAY TO EMPLOYEES WHO FOR INSTANCE BECOME MORE ADEPT WITH COMPUTERS OR LEARN MORE ABOUT FINANCE THE PROBLEM IS THAT COMPANIES CAN WIND UP PAYING MANAGERS FOR SKILLS THAT THEY DON'T IMMEDIATELY NEED SAYS EDWARD LAWLER III OF THE UNIVERSITY OF SOUTHERN CALIFORNIA IT BECOMES DOUBLY BAD IF THE SKILLS BECOME OBSOLETE AND AREN'T USED WHILE ENDING UP COSTING A LOT HE ADDS AND THERE IS THE RISK THAT AFTER EMPLOYEES LEARN NEW SKILLS MORALE AND PRODUCTIVITY WILL SUFFER IF RAISES AND PROMOTIONS DON'T EVENTUALLY FOLLOW WYATT CO A SAN FRANCISCO CONSULTING FIRM FOUND THAT WHILE COMPANIES IN RECENT YEARS HAVE SAID PAY IS MORE CLOSELY TIED TO PERFORMANCE ONLY 27 OF EMPLOYEES IN A RECENT BROAD SURVEY FELT THEY WERE RECOGNIZED FOR DOING A BETTER JOB SIMILARLY THERE IS A WIDE GAP BETWEEN WHAT COMPANIES SAY THEY ARE DOING ABOUT EMPOWERING WORKERS TO MAKE DECISIONS AND THE POWER WORKERS FEEL THEY HAVE COMPANIES THAT PROMISE EMPLOYEE PARTICIPATION AND CONTROL BUT THEN DO NOT CHANGE THE LOCUS OF POWER ARE VULNERABLE TO WORKER DISENCHANTMENT SAYS LAURIE BASSI AN ECONOMICS PROFESSOR AT GEORGETOWN WHILE SHE BELIEVES SUCH CHANGES ARE NEEDED AT MANY CORPORATIONS IF THEY ARE JUST WORDS PEOPLE WHO HAVE PUT THEIR HEARTS AND SOULS INTO BELIEVING GET JADED IT MAKES IT HARDER TO INTRODUCE THE NEXT THING TOWERS PERRIN'S LITERATURE ON BROADBANDING INCLUDES A FIVEPAGE READINESS TEST FOR PROSPECTIVE USERS IT ASKS FOR INSTANCE IF A COMPANY'S MIDDLE MANAGEMENT IS WILLING AND ABLE TO MAKE PAY DECISIONS WITH FEWER GUIDELINES ANDREW GELLER WHO HEADS THE NEW YORK OFFICE OF THE HAY GROUP A CONSULTING FIRM SAYS REENGINEERING BROADBANDING OR PROFIT SHARING MAY BE THE RIGHT THINGS BUT IF IMPLEMENTED AS THE FLAVOROFTHEMONTH MANAGEMENT FAD THEY CREATE PROBLEMS SOMETIMES IT MAY BE BEST FOR A COMPANY JUST TO STEP BACK AND DO NOTHING OR CAREFULLY TAILOR A NEW SYSTEM TO THOSE AFFECTED SAY THE EXPERTS JOHN PARKINGTON A DIRECTOR OF WYATT RECOMMENDS AN INCREMENTALIST APPROACH IN WHICH A SMALL GROUP OR DEPARTMENT IS TRAINED IN THE NEW APPROACH AND REWARDED AFTER REACHING GOALS THAT WAY THE REST OF THE FIRM CAN BE MOTIVATED BECAUSE THEY SEE TANGIBLE BENEFITS OF ACCOMPLISHMENT DESPITE THE QUESTIONABLE RESULTS OF NEW MANAGEMENT FORMULAS EXPERTS AGREE THAT TRADITIONAL PRACTICES WILL CONTINUE GIVING WAY TO NEW ONES SAYS DAN MITCHELL A PROFESSOR AT UCLA SOMEBODY'S WRITING A BOOK RIGHT NOW THAT WILL COME UP WITH A MORE POPULAR PHRASE AND WE'LL ALL BE DOING THAT IT ALL REMINDS GAIL FOSLER CHIEF ECONOMIST AT THE CONFERENCE BOARD OF A RECENT VISIT TO THE METROPOLITAN MUSEUM OF ART'S EGYPTIAN HISTORY EXHIBIT THIS PHARAOH WAS TERRIFIC BECAUSE HE CENTRALIZED THE SYSTEM THEN ANOTHER PHARAOH WAS GREAT BECAUSE HE DECENTRALIZED IT SEE RELATED LETTERS LETTERS TO THE EDITOR NO COMPANY CAN AFFORD TO OSSIFY WSJ AUG 9 1993 9307060106 YY93 MM08 9308090001 930727 BASS TO ACQUIRE FOOD COMPANIES FOR 1 BILLION PURCHASE FROM ARTAL NV WOULD BE BIGGEST LBO SINCE SEPTEMBER OF '92 BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS LED BY TEXAS BILLIONAIRE ROBERT M BASS HAVE AGREED TO BUY A COLLECTION OF FOOD COMPANIES FROM DUTCH CONGLOMERATE ARTAL NV FOR ABOUT 1 BILLION IN WHAT WOULD BE THE LARGEST LEVERAGED BUYOUT IN NEARLY A YEAR THE COMPANIES TO BE ACQUIRED FROM INVUS GROUP LTD ARTAL'S NORTH AMERICAN INVESTMENT ARM INCLUDE MOTHER'S COOKIES B&G PICKLES SAN FRANCISCO SOUR DOUGH BREAD AND STELLA CHEESE CO ACCORDING TO INDIVIDUALS FAMILIAR WITH THE BUYOUT ALL ARE STRONG REGIONAL BRANDS THAT ARE PROFITABLE THE INDIVIDUALS SAID THEY ADDED THAT THE BASS GROUP PLANS TO ESTABLISH A COMPANY CALLED SPECIALTY FOODS CORP TO MANAGE THE MORE THAN HALF A DOZEN BRANDS MR BASS'S FORT WORTHBASED INVESTMENT ARM KEYSTONE INC AND KEYSTONE'S AFFILIATE ACADIA PARTNERS LP PLAN TO ACQUIRE THE FOOD BRANDS IN PARTNERSHIP WITH HAAS WHEAT & PARTNERS INC A NEW DALLAS INVESTMENT FIRM ACCORDING TO INDIVIDUALS FAMILIAR WITH THE PROPOSED BUYOUT'S STRUCTURE HAAS WHEAT CONCEIVED OF THE DEAL BUT KEYSTONE AND ACADIA WILL BE THE CONTROLLING SHAREHOLDERS THE INDIVIDUALS SAID HAAS WHEAT WAS FORMED LAST OCTOBER BY ROBERT HAAS A DALLAS BUYOUT SPECIALIST AND DOUGLAS WHEAT A FORMER INVESTMENT BANKER WITH EQUITABLE COS' DONALDSON LUFKIN & JENRETTE INC UNIT HAAS WHEAT HAS A FORMAL PACT TO PURSUE ACQUISITIONS WITH THE 17 BILLION ACADIA FUND AND THE AGREEMENT TO BUY THE SPECIALTYFOODS COMPANIES IS THE FIRST SIGNED SINCE THE PACT TOOK EFFECT THE PLANNED ACQUISITION WAS FIRST REPORTED IN YESTERDAY'S AMERICAN BANKER WHICH SAID THAT CHEMICAL BANK AGREED TO UNDERWRITE A LOAN OF MORE THAN 500 MILLION TO HELP FINANCE THE BUYOUT THE PURCHASE AGREEMENT WAS CONFIRMED BY INDIVIDUALS WITH KNOWLEDGE OF THE TRANSACTION BUT SPOKESMEN FOR THE CHEMICAL BANKING CORP UNIT MR BASS AND HAAS WHEAT DECLINED TO COMMENT AND OFFICIALS OF INVUS DIDN'T RETURN CALLS IF THE TRANSACTION IS COMPLETED ACCORDING TO SECURITIES DATA CO IT WOULD BE ONLY THE FIFTH LEVERAGED BUYOUT VALUED AT MORE THAN 1 BILLION SINCE THE BEGINNING OF 1990 THE LAST SUCH ACQUISTION WAS IN SEPTEMBER 1992 WHEN KOHLBERG KRAVIS ROBERTS & CO PAID 14 BILLION TO BUY AETNA LIFE & CASUALTY CO'S AMERICAN REINSURANCE CO UNIT KKR TOOK AMERICAN REPUBLIC IN JANUARY AT A PRICE THAT VALUED THE COMPANY'S STOCK AT MORE THAN TRIPLE WHAT KKR PAID FOR IT SOME MERGER EXPERTS SAID THAT THE BASS GROUP'S PROPOSED PURCHASE ISN'T LIKELY TO PRESAGE A RETURN TO THE BUYOUT BOOM OF THE MIDTOLATE 1980S WHEN BILLIONDOLLAR DEALS WERE CONSIDERED PROSAIC THERE'S MORE ACTIVITY NOW BUT IT'S JUST A FRACTION OF WHAT IT USED TO BE SAID ERIC GLEACHER AN INTERNATIONAL MERGERS AND ACQUISITIONS ADVISER WHO'S HEAD OF NEW YORKBASED GLEACHER & CO MR GLEACHER NOTES THAT BECAUSE COMPANIES AREN'T BEING FORCED TO SELL THEMSELVES OR RESTRUCTURE BY HOSTILE BIDDERS AS MANY WERE IN THE 1980S MERGER ACTIVITY IS ONLY A QUARTER OF WHAT IT WAS IN 1988 AND 1989 INTEREST RATES ARE LOW BUT THE STOCK MARKET'S HIGH AND MOST COMPANIES WILL SELL BETTER IN THE PUBLIC MARKET THAN THEY WILL PRIVATELY SAID JOEL COHEN THE HEAD OF MERGERS AND ACQUISITIONS AT DONALDSON LUFKIN & JENRETTE PLANS FOR ARTAL NV A DUTCH CONGLOMERATE TO SELL CERTAIN US FOOD COMPANIES TO TEXAS INVESTORS WERE REPORTED IN THE JUNE 15 ISSUE OF MILLING & BAKING NEWS A WALL STREET JOURNAL ARTICLE JULY 27 SAID INCORRECTLY THAT AN AMERICAN BANKER ARTICLE JULY 26 WAS THE FIRST ONE TO REPORT ON THE PROPOSAL 9308060193 930806 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 BIG FLOWER PRESS INC 150 MILLION OF SENIOR SUBORDINATED NOTES DUE AUG 1 2003 PRICED AT PAR TO YIELD 1075 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS RATED SINGLEB3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BT SECURITIES CORP CAREMARK INTERNATIONAL INC 100 MILLION OF NOTES DUE AUG 15 2003 PRICED AS 6875S AT 99464 TO YIELD 695 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 1125 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LAZARD FRERES & CO CAROLINA TELEPHONE & TELEGRAPH CO 100 MILLION TWOPART ISSUE PRICED THROUGH TWO COMPETITIVE BIDS ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 50 MILLION OF DEBENTURES DUE AUG 15 2000 WAS WON BY GOLDMAN SACHS & CO THE DEBENTURES WERE PRICED AS 575S AT 994 TO YIELD 5856 A SPREAD OF 375 BASIS POINTS ABOVE COMPARABLE TREASURYS THE SECOND TRANCHE 50 MILLION OF DEBENTURES DUE AUG 15 2013 WAS WON BY MERRILL LYNCH & CO THE DEBENTURES WERE PRICED AS 675S AT 99165 TO YIELD 6827 A SPREAD OF 375 BASIS POINTS ABOVE THE 30YEAR WHENISSUED TREASURY BOTH PARTS ARE NONCALLABLE AND ARE RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P CAROLINA TELEPHONE IS A UNIT OF SPRINT CORP FEDERAL HOME LOAN BANK SYSTEM 105 MILLION OF DEBENTURES DUE AUG 12 1996 PRICED AT PAR TO YIELD 462 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES CALLABLE AFTER ONE YEAR WERE PRICED AT A SPREAD OF SEVEN BASIS POINTS ABOVE WHENISSUED TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS FORD MOTOR CREDIT CO 300 MILLION OF NOTES DUE AUG 15 2008 PRICED AS 675S AT 99415 TO YIELD 6813 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 100 BASIS POINTS ABOVE THE WHENISSUED 10YEAR TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC FORD MOTOR CREDIT IS A UNIT OF FORD MOTOR CO GILLETTE CO 300 MILLION TWOPART ISSUE OF NOTES PRICED THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 150 MILLION OF NOTES DUE AUG 15 1996 WAS PRICED AS 475S AT 9967 TO YIELD 487 THE NOTES WERE PRICED AT A SPREAD OF 35 BASIS POINTS ABOVE THE WHENISSUED THREEYEAR TREASURY THE SECOND TRANCHE 150 MILLION OF NOTES DUE AUG 15 2003 WAS PRICED AS 625S AT 9993 TO YIELD 626 THE NOTES WERE PRICED AT A SPREAD OF 45 BASIS POINTS ABOVE WHENISSUED 10YEAR TREASURYS BOTH PARTS ARE NONCALLABLE AND ARE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P NEW YORK TELEPHONE CO 250 MILLION OF DEBENTURES DUE AUG 15 2025 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY GOLDMAN SACHS & CO IT WAS REOFFERED AS 7S AT 97679 TO YIELD 7186 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 74 BASIS POINTS ABOVE THE WHENISSUED TREASURY BOND THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P NEW YORK TELEPHONE IS A UNIT OF NYNEX CORP ROYAL CROWN CORP 275 MILLION OF SENIOR SECURED NOTES DUE AUG 1 2000 PRICED AT PAR TO YIELD 975 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE CALLABLE AFTER FIVE YEARS RATED SINGLEB1 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP SALOMON INC 200 MILLION OF NOTES DUE AUG 15 2003 PRICED AS 675S AT 9952 TO YIELD 6817 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 99 BASIS POINTS ABOVE THE 10YEAR WHENISSUED TREASURY RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC ALLIANCE COMMUNICATIONS CORP INITIAL PUBLIC OFFERING OF 24 MILLION COMMON SHARES AT 13 CANADIAN DOLLARS APIECE US1009 THROUGH UNDERWRITERS MIDLAND WALWYN CAPITAL INC WOOD GUNDY INC GORDON CAPITAL CORP AND MARLEAU LEMIRE SECURITIES INC DUAL DRILLING CO INITIAL OFFERING OF 63 MILLION COMMON SHARES PRICED AT 14 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FREEPORT MCMORAN COPPER & GOLD INC SIX MILLION DEPOSITARY SHARES AT 3877 APIECE THROUGH LEAD MANAGER LEHMAN BROTHERS ALONG WITH GOLDMAN SACHS & CO KIDDER PEABODY & CO AND MERRILL LYNCH & CO EACH DEPOSITARY SHARE REPRESENTS 005 SHARE OF GOLDDENOMINATED PREFERRED STOCK JACK ECKERD CORP INITIAL OFFERING OF 45 MILLION COMMON SHARES PRICED AT 14 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO MADGE NV INITIAL PUBLIC OFFERING OF 6138840 MILLION COMMON SHARES PRICED AT 10 APIECE THROUGH COMANAGERS GOLDMAN SACHS & CO AND HAMBRECHT & QUIST INC OF THE SHARES OFFERED 35 MILLION WILL BE SOLD BY THE COMPANY AND THE REMAINDER BY CERTAIN SHAREHOLDERS TJ SYSTEMS CORP 320000 SHARES OF SERIES A CONVERTIBLE PREFERRED STOCK PRICED AT 10 APIECE THROUGH UNDERWRITERS LED BY PAULSON INVESTMENT CO PRICE REIT INC INITIAL OFFERING OF 43 MILLION SERIES B COMMON SHARES PRICED AT 3250 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO JACKSONVILLE FLA ELECTRIC AUTHORITY 492 MILLION ISSUE 2 SERIES 10 REFUNDING REVENUE BONDS FOR THE ST JOHNS RIVER POWER PARK SYSTEM HAVE BEEN PRICED BY A LEHMAN BROTHERS GROUP YIELDS RANGE FROM 25 IN OCTOBER 1993 TO 565 IN 2013 MOODY'S HAS RATED THE OFFERING DOUBLEA1 AND S&P HAS ASSIGNED A DOUBLEA RATING TENNESSEE VALLEY AUTHORITY 150 MILLION OF BONDS DUE AUG 15 1995 PRICED AT PAR TO YIELD 4125 ACCORDING TO MCM CORPORATEWATCH THE BONDS WERE PRICED FLAT TO TREASURYS RATED TRIPLEA BY BOTH MOODY'S AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 700 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1993G31 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 1993169 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 715 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 359 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 3322 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1993173 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 66 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 178 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1993171 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7125 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 357 MONTHS CREDIT LOCAL DE FRANCE FRENCH AGENCY 125 MILLION CANADIAN DOLLARS OF 6375 EUROBONDS DUE SEPT 2 1997 AT ISSUE PRICE 1013 VIA MORGAN STANLEY INTERNATIONAL REOFFERED AT 999 TO YIELD 64 A SPREAD OF 47 BASIS POINTS ABOVE CANADIAN GOVERNMENT NOTE DUE AUGUST 1996 FEES 1625 POINTS CREDIT LYONNAIS FRANCE C150 MILLION OF 65 EUROBONDS DUE SEPT 15 1997 AT ISSUE PRICE 10066 VIA CREDIT LYONNAIS EURO SECURITIES LONDON LTD REOFFERED AT 99285 TO YIELD 671 A MARGIN OF 75 BASIS POINTS ABOVE CANADIAN GOVERNMENT BOND DUE AUGUST 1996 FEES 1625 POINTS DENMARK SOVEREIGN 12 BILLION OF EUROBONDS IN TWO TRANCHES DUE AUG 24 1998 VIA SG WARBURG SECURITIES LTD AND UBS LTD FIXEDRATE TRANCHE FOR 700 MILLION OF 675 BONDS AT ISSUE PRICE 101295 REOFFERED AT 9967 TO YIELD 683 ANNUAL A MARGIN OF 28 BASIS POINTS OVER COMPARABLE UK GILT FEES 1875 POINTS FLOATINGRATE TRANCHE FOR 500 MILLION AT ISSUE PRICE PAR REOFFERED AT 99725 INTEREST PAYABLE QUARTERLY AT 0125 POINT BELOW THREEMONTH LONDON INTERBANK OFFERED RATE FEES 0425 POINT DEUTSCHE FINANCE NETHERLANDS BV GERMAN PARENT 250 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE SEPT 10 2001 WITH EQUITYPURCHASE WARRANTS FROM DEUTSCHE BANK AG ATTACHED CARRYING A 25 COUPON AT 1005 VIA DEUTSCHE BANK SUISSE SA WARRANTS EXERCISABLE FROM SEPT 17 1993 TO SEPT 20 1996 TO BUY SHARES IN DEUTSCHE BANK AG FINAL TERMS TO BE CALCULATED ON AVERAGE CLOSING SHARE PRICE FROM AUG 6 THROUGH AUG 9 OF DEUTSCHE BANK AG FEES 2125 POINTS EUROPEAN INVESTMENT BANK SUPRANATIONAL 500 MILLION MARKS OF 6 EUROBONDS DUE AUG 26 1997 AT ISSUE PRICE 101365 VIA COMMERZBANK AG BONDS YIELD 6003 AT 9999 BREAKEVEN PRICE FOR COMANAGERS A MARGIN OF NINE BASIS POINTS ABOVE COMPARABLE GERMAN BUND FEES 1375 POINTS MITSUBISHI CORP FINANCE PLC JAPANESE PARENT 30 BILLION YEN OF 35 EUROBONDS DUE MARCH 29 1996 AT ISSUE AND REOFFER PRICE 10015 VIA GOLDMAN SACHS INTERNATIONAL LTD BONDS YIELD 345 FEES 025 POINT MORTGAGE BANK OF DENMARK DANISH AGENCY 300 MILLION DANISH KRONER OF 6625 EUROBONDS DUE SEPT 16 1998 AT ISSUE PRICE 101648 VIA CHEMICAL INVESTMENT BANK LTD REOFFERED AT 100023 TO YIELD 662 GUARANTOR KINGDOM OF DENMARK FEES 1875 POINTS PHILIPPINE AIRLINES PHILIPPINES 100 MILLION OF 8 EUROBONDS DUE AUG 19 1996 AT ISSUE AND REOFFER PRICE 994775 VIA CHEMICAL INVESTMENT BANK LTD BONDS YIELD 82 SEMIANNUAL AT REOFFER PRICE A MARGIN OF 375 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE FEES 125 POINTS INTEREST PAYABLE SEMIANNUALLY UBS AUSTRALIA LTD SWISS PARENT C150 MILLION OF 625 EUROBONDS DUE SEPT 15 1997 AT ISSUE PRICE 10105 VIA UBS LTD REOFFERED AT 9965 TO YIELD 635 A SPREAD OF 40 BASIS POINTS ABOVE CANADIAN GOVERNMENT BOND DUE AUGUST 1996 GUARANTOR UNION BANK OF SWITZERLAND FEES 1625 POINTS 9308060192 930806 INTERNATIONAL NEW JAPANESE ERA IS HIT BY GRIDLOCK DELAYING THE VOTE ON A PRIME MINISTER BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO A NEW ERA OF MULTIPARTY DEMOCRACY BEGAN IN JAPAN AND THE IMMEDIATE RESULT WAS GRIDLOCK PARLIAMENT WAS SCHEDULED TO VOTE FOR A NEW PRIME MINISTER AND WAS EXPECTED TO CHOOSE MORIHIRO HOSOKAWA THE HEAD OF A COALITION OF SEVEN POLITICAL PARTIES HE WOULD BE THE NATION'S FIRST LEADER IN 38 YEARS WHO DIDN'T COME FROM THE LIBERAL DEMOCRATIC PARTY BUT PROCEDURAL SQUABBLING BETWEEN THE COALITION AND THE LDP NOW THE OPPOSITION PARTY FORCED A DELAY IN THE VOTE AT LEAST UNTIL FRIDAY IT STILL APPEARS LIKELY THAT MR HOSOKAWA AND THE ANTILDP FORCES EVENTUALLY WILL PREVAIL BUT THE MESSY FIGHTING SEEMS TO CONFIRM THE FEARS OF MANY POLITICAL EXPERTS THAT JAPAN'S NORMALLY PREDICTABLE LEGISLATURE MAY BECOME FRACTIOUS AND PARALYZED THE COSTS WOULD BE HIGH THE US AND OTHER INDUSTRIALIZED NATIONS ARE PUSHING JAPAN TO DO MORE TO STIMULATE ITS LAGGING ECONOMY SUCH AS CUTTING INCOME TAXES OR BOOSTING GOVERNMENT SPENDING SUCH MEASURES COULD GET STALLED IN A DIVIDED PARLIAMENT THE US ALSO HOPES TO WRAP UP MULTILATERAL TRADE TALKS BY THE END OF THIS YEAR A MAJOR STUMBLING BLOCK IS JAPAN'S REFUSAL UNTIL NOW TO OPEN ITS RICE MARKET TO IMPORTS CHANGING THAT LAW WOULD HAVE DIFFICULTY PASSING PARLIAMENT IN THE BEST OF CIRCUMSTANCES YESTERDAY'S BATTLE WAS OSTENSIBLY OVER MATTERS SUCH AS WHICH SIDE SHOULD APPOINT THE SPEAKER OF THE HOUSE THE LDP DEMANDED THE RIGHT TO FILL THE POSITION THE COMBINED SIZE OF THE COALITION HOWEVER IS BIGGER THAN THE LDP SO THE COALITION WANTED THE PRIVILEGE WE'RE NOT RESISTING AT ALL ALL WE'RE SAYING IS WE HAVE TO SET UP THE RULES YOSHIRO MORI SECRETARYGENERAL OF THE LDP SAID BUT MANY POLITICIANS AND ANALYSTS SUSPECTED OTHERWISE IN ADDITION TO NURSING BRUISED EGOS LDP LEADERS CLEARLY ARE TRYING TO EXPLOIT WEAKNESSES IN THE FRAGILE COALITION AND PAINT THEIR UNTESTED OPPONENTS AS UNABLE TO MANAGE GOVERNMENT 9308060191 930806 THE CREEK LIES NEAR A LITTLE LANE THAT IS CALLED MICHIGAN AVENUE BY JAMISON S PRIME STAFF REPORTER OF THE WALL STREET JOURNAL FORGET THAT FISHING TRIP TO THE NORTH WOODS CHICAGO WANTS YOU TO CAST A LINE FROM THE SHADOW OF SEARS TOWER TO PROVE THAT THE CHICAGO RIVER THE GREENISHGRAY CHANNEL THAT RUNS THROUGH DOWNTOWN IS NO LONGER A SEWAGEFILLED GUTTER A LOCAL BUSINESS GROUP IS URGING FISHERMEN TO TRY THEIR LUCK AT THE FIRST ANNUAL RICHARD J DALEY MEMORIAL FISHING DERBY THIS WEEKEND BUT CONVINCING CHICAGOANS THAT THEIR RIVER HOLDS ANYTHING MORE APPEALING THAN JUNKED CARS AND OLD MATTRESSES ISN'T EASY PEOPLE THINK IT'S STILL THIS HORRIBLY SMELLY STINKY ROTTEN PLACE ACKNOWLEDGES TOM MURPHY EXECUTIVE DIRECTOR OF CHICAGO'S RIVERWALK A COALITION OF HOTELS AND BUSINESSES THERE'S ALWAYS BEEN A LOT OF SNICKERING ABOUT DEAD BODIES IN THE RIVER INDEED THE RIVER WAS ONCE SO POLLUTED THAT ENGINEERS REVERSED ITS FLOW TO KEEP IT FROM CONTAMINATING THE CITY'S CWATER SUPPLY TODAY HOWEVER THE WATERWAY IS FAIRLY CLEAN AND A FEW FISH ACTUALLY LIVE THERE TO PITCH THE CHICAGO AS A RIVER REJUVENATED THE GROUP IS RELEASING 1000 SPECIALLY TAGGED BASS AND CATFISH INTO THE RIVER FOR THE EVENT IF THE FISH ARE SMART THEY'LL SWIM STRAIGHT FOR LAKE MICHIGAN SAYS MIMI ALTMAN OF SUBURBAN CHICAGO PETE WOLODZKO AND PAT BOONE ON A LUNCH BREAK OUTSIDE THEIR RIVERSIDE OFFICE BUILDING LAUGH HOW MUTATED ARE THE FISH ASKS MS BOONE EYEING THE MURKY WATER 30 FEET BELOW THEY PROBABLY HAVE THREE EYES AND CAN SURVIVE ON LAND SPECULATES MR WOLODZKO WHILE MR MURPHY ADMITS SOME LOCALS AREN'T BITING HE SAYS OUTOFTOWNERS ARE GOING NUTS OVER THE OPPORTUNITY TO FISH IN THE SHADOW OF CHICAGO'S FAMOUS SKYLINE THE INSPIRATION FOR THE FISHATHON THE LATE MAYOR DALEY ONCE REMARKED SOME 20 YEARS AGO THAT HE DREAMED OF THE DAY HE AND HIS FAMILY WOULD FISH THE RIVER BUT HIS SON RICHARD M DALEY THE CURRENT MAYOR WON'T BE ABLE TO KEEP ANYTHING HE CATCHES AFTER HE OPENS THE DERBY RATHER PARTICIPANTS MUST TRADE THEIR CATCHES FOR PRIZES THINGS LIKE TACKLE BOXES FISHING RODS AND EVEN A MOTORCYCLE AND RETURN THE FISH TO THE WATER TO BOLSTER THE POPULATION FOR FUTURE ANGLERS DESPITE LOCAL SUSPICIONS THE THROWBACKS WON'T BE FOR HEALTH REASONS THE ILLINOIS HEALTH DEPARTMENT ADVISES AGAINST EATING SOME FISH IN LAKE MICHIGAN BUT IS MUM ON THE SUBJECT OF RIVER FISH 9308060190 930806 WHO'S NEWS COMMUNITY FIRST BANKSHARES INC COMMUNITY FIRST BANKSHARES INC FARGO ND JAMES H FLITTIE PRESIDENT AND CHIEF OPERATING OFFICER OF NWNL COS AND JAMES T ANDERSON VICE PRESIDENT AND TREASURER OF U S WEST INC WERE ELECTED DIRECTORS OF THIS BANKING CONCERN THERE ARE NOW 11 BOARD MEMBERS 9308060189 930806 WHO'S NEWS VMARK SOFTWARE INC VMARK SOFTWARE INC FRAMINGHAM MASS JAMES K WALSH 55 YEARS OLD A VICE PRESIDENT AND GENERAL COUNSEL WAS NAMED TO THE SOFTWARE COMPANY'S BOARD INCREASING THE NUMBER OF DIRECTORS TO SEVEN 9308060188 930806 WHO'S NEWS DIGITAL EQUIPMENT CORP DIGITAL EQUIPMENT CORP MAYNARD MASSHAROLD F BUD ENRIGHT JR 56 YEARS OLD A VICE PRESIDENT AND GENERAL MANAGER AT EVANS & SUTHERLAND WAS NAMED VICE PRESIDENT OF THE ALPHA AXP PROGRAM FORMER DIGITAL VICE PRESIDENT WILLIAM R JOHNSON 51 WAS IN CHARGE OF THE ALPHA PROGRAM UNTIL HIS RESIGNATION LAST WEEK 9308060187 930806 WHO'S NEWS CAPITAL HOLDING CORP CAPITAL HOLDING CORP LOUISVILLE KY LEE ADREAN 41 YEARS OLD FORMERLY CHIEF FINANCIAL OFFICER AND SENIOR VICE PRESIDENTPLANNING AND FINANCE WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS INSURANCE HOLDING COMPANY'S AGENCY GROUP LIFE INSURANCE UNIT HE SUCCEEDS DAVID SAMS WHO LEFT THE COMPANY TO BECOME CHIEF EXECUTIVE OFFICER OF CONNECTICUT MUTUAL LIFE INSURANCE CO ROBERT L WALKER 42 YEARS OLD FORMERLY VICE PRESIDENT AND GENERAL COUNSEL SUCCEEDS MR ADREAN AS SENIOR VICE PRESIDENT AND FINANCIAL CHIEF 9308060186 930806 WHO'S NEWS DATA SWITCH CORP DATA SWITCH CORP SHELTON CONN GERRY ORDELHEIDE WAS NAMED CORPORATE VICE PRESIDENT INTERNATIONAL OPERATIONS OF THIS MAKER OF COMPUTER SWITCHING SYSTEMS MR ORDELHEIDE 50 YEARS OLD WAS FORMERLY AN EXECUTIVE VICE PRESIDENT OF SIEMENS NIXDORF INFORMATION SYSTEMS 9308060185 930806 WHO'S NEWS DIED WILBER COLE 64 A DIRECTOR OF F&C BANCSHARES INC SATURDAY IN THE BAHAMAS IN A PLANE CRASH 9308060184 930806 WORLD MARKETS MOST BIG EUROPEAN BOURSES CATCH THEIR BREATH AFTER RECENT RALLY PRICES IN TOKYO DRIFT LOWER A WALL STREET JOURNAL NEWS ROUNDUP BIG EUROPEAN BOURSES TOOK A BREATHER YESTERDAY FROM THEIR RECENT UPHILL LOPE AS EXPECTED INTERESTRATE CUTS HADN'T MATERIALIZED LONDON SHARES MANAGED TO END MARGINALLY HIGHER AFTER STRUGGLING TO BOUNCE BACK FROM THE DAY'S LOWS FRANKFURT PRICES FINISHED MIXED ON PROFITTAKING FOLLOWING THIS WEEK'S GAINS TOKYO SHARES DRIFTED LOWER THURSDAY IN LACKLUSTER DEALINGS LARGELY DOMINATED BY ARBITRAGERS WORLDWIDE STOCK PRICES WERE FLAT IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS UNCHANGED AT 10954 REFLECTING INCREASES IN ASIA/PACIFIC MARKETS AND A DROP IN AMERICAN AND EUROPEAN MARKETS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 13372 UP 267 OR 2 WITH GOLDEN HOPE OF MALAYSIA POSTING A 58 GAIN IN ITS LOCAL CURRENCY PRECIOUS METALS STOCKS TRAILED AT 13964 DOWN 792 OR 53 WITH HEMLO GOLD MINES OF CANADA SLIDING 15 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 21 POINTS TO 29434 THE FT 30STOCK INDEX ADDED 61 POINTS TO 23364 VOLUME WAS 6165 MILLION SHARES DOWN FROM 7358 MILLION SHARES A DAY EARLIER THE LONDON EXCHANGE OPENED SHARPLY LOWER DOWN 156 POINTS AND PRICES MOVED IN A NARROW RANGE THROUGH THE SESSION AFTER RACING UP RECENTLY ON EUROPEAN RATECUT EXPECTATIONS LONDON STOCKS GOT MIRED DOWN AND PARTICIPANTS TURNED THEIR HOPES TO A STRONG ROUND OF BRITISH CORPORATE EARNINGS TO PUSH EQUITIES HIGHER AGAIN YET A MARKET CONSOLIDATION COULD PERSIST AS MOST EARNINGS POSTED SO FAR HAVE BEEN FLAT TO A BIT HIGHER SOME STOCKS WERE PRESSURED YESTERDAY BY RENEWED CONCERNS ABOUT THE GROWING TREND FOR DISCOUNTING AMONG RETAILERS IN FRANKFURT THE DAX 30STOCK INDEX INCHED UP 014 POINT TO 186070 MAKING THE RISE FOR THIS WEEK 5747 POINTS THOUGH THE CONSOLIDATION WAS EXPECTED INVESTORS WERE IMPRESSED THAT AFTER OPENING SLIGHTLY WEAKER STOCKS MANAGED TO RECOVER FROM PROFITTAKING HELD ABOVE A PERCEIVED DAX SUPPORT LEVEL OF 1850 AND FINISHED IN POSITIVE TERRITORY EVEN IF BARELY PARIS STOCKS ROSE IN AIMLESS TRADING BOOSTED ONLY BY SHORT COVERING OR BUYING TO REPLACE BORROWED STOCK SOLD IN A PRICEDROP STRATEGY BUT THESE PURCHASES WANED LEAVING PRICES OFF THEIR HIGHS VOLUME WAS UNIMPRESSIVE AS MOST BIG PLAYERS CONTINUED TO WAIT ON THE SIDELINES FOR AN EASING IN FRENCH MONETARY POLICY THE CENTRAL BANK LEFT ITS OFFICIAL RATES UNCHANGED IN A SECURITIES REPURCHASE YESTERDAY IN AMSTERDAM PRICES CLOSED MIXED THOUGH MOST BLUE CHIPS ROSE ON FAVORABLE CORPORATE EARNINGS REPORTS A STRONGER DOLLAR HELPED SOME SHARES THOUGH WEAKER LONDON STOCKS AND WALL STREET'S SOFT START HAD A COUNTERBALANCING EFFECT IN MILAN EQUITIES DROPPED ON POSITIONSQUARING AHEAD OF TECHNICAL DEADLINES BUT SELECTIVE BUYING PUSHED UP SOME ISSUES SUCH AS COMPANIES ITALY IS EXPECTED TO FULLY SELL OFF IN MADRID AND ZURICH SHARES DRIFTED LOWER ON PROFITTAKING BRUSSELS SHARES WERE MIXED TO LOWER AS INVESTORS TOOK PROFITS AS AN ACCOUNTING PERIOD ENDED BUT STOCKHOLM'S RALLY CONTINUED AND SHARES YET AGAIN ROMPED TO A NEW 1993 HIGH IN HEAVY TRADING AFTER RECOVERING FROM A WEAK OPENING SWEDEN'S CENTRAL BANK CUT THE KEY MARGINAL LENDING RATE TO 825 FROM 85 EFFECTIVE AUG 9 BUT THIS HAD LITTLE EFFECT ON THE MARKET WHICH HAD ALREADY FACTORED IT INTO SHARE PRICES IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 13991 POINTS WEDNESDAY FELL 7191 TO 2042564 ON FRIDAY THE NIKKEI FELL 10941 POINTS TO CLOSE THE MORNING SESSION AT 2031623 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT A THIN 230 MILLION SHARES OFF SHARPLY FROM 301 MILLION SHARES A DAY EARLIER RETREATING ISSUES OUTNUMBERED ADVANCING ISSUES 625330 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADDED 1442 POINTS WEDNESDAY GAVE UP 982 TO 166182 TOKYO STOCKS INITIALLY ROSE THEN MOVED UP AND DOWN ON BUYING AND SELLING BY ARBITRAGERS IN A MARKET LARGELY BEREFT OF OTHER PARTICIPANTS THE LIMITED ACTION WAS CONCENTRATED IN THE FINANCIAL SECTOR AS INVESTORS SWITCHED MONEY INTO NONLIFE INSURERS AND OUT OF BANKS TO REDUCE RISKS AFTER BANK STOCKS' RECENT RALLY IN EXPECTATION OF A JAPANESE CREDIT EASING THE INSURANCE SECTOR WAS THE TOP PERFORMER MEANWHILE A JAPANESE PARLIAMENTARY SESSION TO START PICKING A NEW PRIME MINISTER WAS DELAYED BUT THIS DIDN'T UPSET INVESTORS WHO BELIEVED THE OUTCOME WAS A FOREGONE CONCLUSION AND WERE MORE INTERESTED IN POLICIES OF A NEW GOVERNMENT MOST OTHER ASIAN AND PACIFIC MARKETS POSTED GAINS SYDNEY SHARE PRICES ROSE WITH BIG INDUSTRIAL STOCKS LOGGING INCREASES OFFSETTING LARGE DROPS IN GOLD ISSUES IN HONG KONG PROPELLED BY THE BANKING SECTOR STOCKS CLIMBED TO THEIR HIGHEST LEVEL IN ALMOST TWO MONTHS IN TAIPEI STOCKS FINISHED HIGHER DESPITE SOME PROFITTAKING IN SEOUL PRICES SHOT UP AS THE SOUTH KOREAN CENTRAL BANK EXTENDED MOST MATURING DEBT OF THREE INVESTMENT AND TRUST FIRMS WHICH ARE MAJOR INSTITUTIONAL INVESTORS IN WELLINGTON STOCKS ADVANCED SHARPLY BOOSTED BY A NEW ZEALAND GOVERNMENT CUT IN THE TAX ON COMPANY DIVIDENDS PAID BY FOREIGN INVESTORS WHO BOUGHT HEAVILY ESPECIALLY BLUE CHIPS AMONG CORPORATE DEVELOPMENTS IN LONDON BRITISH PETROLEUM ROSE 25 PENCE TO 306 PENCE 459 SECONDQUARTER PROFIT ON A REPLACEMENTCOST BASIS WAS 261 MILLION 3914 MILLION COMPARED WITH A YEAREARLIER LOSS OF 812 MILLION AFTER A HUGE SPECIAL CHARGE BEFORE EXCEPTIONAL ITEMS REPLACEMENTCOST NET SURGED TO 240 MILLION FROM 39 MILLION ROYAL DUTCH/SHELL GROUP FELL 190 GUILDERS TO 182 GUILDERS 9460 AS THE 20 INCREASE TO 619 MILLION IN THE ANGLODUTCH OIL COMPANY'S SECONDQUARTER CURRENTCOST PROFIT WAS FAR BELOW MARKET EXPECTATIONS REED ELSEVIER FELL FOUR PENCE TO 660 PENCE EVEN THOUGH THE ANGLODUTCH PUBLISHER IN ITS FIRST RESULTS SINCE THE JAN 1 MERGER OF REED INTERNATIONAL OF BRITAIN AND ELSEVIER OF THE NETHERLANDS POSTED A 24 RISE IN SIXMONTH PRETAX PROFIT TO 281 MILLION EXCEEDING MARKET ESTIMATES KLEINWORT BENSON GROUP RALLIED 25 OR 54 TO 485 THE INVESTMENT BANKING CONCERN'S FIRSTHALF PRETAX PROFIT JUMPED 98 TO 422 MILLION BUT IT NOTED AN UNCERTAIN OUTLOOK FOR THE SECOND HALF CITING GLOBAL TENSIONS AND POTENTIAL WORLD TRADE PROBLEMS THE INTERIM DIVIDEND WAS BOOSTED 13 TO SIX PENCE A SHARE IN AMSTERDAM PHILIPS ELECTRONICS ROSE 160 GUILDERS TO 3480 GUILDERS SECONDQUARTER PROFIT SURGED TO 122 BILLION GUILDERS 6342 MILLION FROM 79 MILLION GUILDERS A YEAR EARLIER EXCLUDING A HUGE ONETIME GAIN FROM THE SALE OF A STOCKHOLDING EARNINGS OF 117 MILLION GUILDERS STILL WERE NEAR THE UPPER END OF ANALYSTS' EXPECTATIONS BUT PHILIPS PREDICTED PRESSURE ON PROFIT MARGINS UNTIL LATE NEXT YEAR BECAUSE OF WEAK CONSUMER CONFIDENCE 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 9308060183 930806 WHO'S NEWS NAVISTAR INTERNATIONAL INC NAVISTAR INTERNATIONAL INC CHICAGO BILL CASSTEVENS SECRETARYTREASURER OF THE INTERNATIONAL UNION UNITED AUTOMOBILE AEROSPACE AND AGRICULTURAL IMPLEMENT WORKERS OF AMERICA RICHARD CELESTE MANAGING GENERAL PARTNER OF CELESTE & SABETY LTD AND WILLIAM CRAIG A TRUCK INDUSTRY CONSULTANT WERE NAMED DIRECTORS OF THIS MAKER OF TRUCKS SCHOOL BUS CHASSIS AND MIDRANGE DIESEL ENGINES INCREASING BOARD MEMBERSHIP TO 15 THE BOARD WAS EXPANDED AS PART OF A SETTLEMENT AGREEMENT REGARDING RETIREE HEALTH CARE AND LIFE INSURANCE BENEFITS APPROVED THIS YEAR BY THE US DISTRICT COURT AND SHAREHOLDERS 9308060182 930806 WHO'S NEWS BRITISH AEROSPACE PLC BRITISH AEROSPACE PLC FARNBOROUGH ENGLAND PAUL L HARRIS JR 48 YEARS OLD WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT AND GENERAL MANAGER OF THIS AIRCRAFT MAKER'S US UNIT BRITISH AEROSPACE INC MR HARRIS WILL CONTINUE AS SENIOR VICE PRESIDENT ADMINISTRATION OF THE US UNIT 9308060181 930806 BURGER JOINT CHOMPS ON CBS TRADEMARK FOR TV COP SHOW NETWORK LOSES REGISTRATION FOR RESCUE 911' IN LAWSUIT ENERGIZED BY A CANDY BAR BY STEVE STECKLOW STAFF REPORTER OF THE WALL STREET JOURNAL CBS INC WHICH BROADCASTS RESCUE 911 A TV POLICE SHOW MAY SOON BE IN NEED OF EMERGENCY ASSISTANCE ITSELF THAT'S BECAUSE A FASTFOOD JOINT IN AGAWAM MASS KNOWN AS 911 BURGERS AND DOGS WHOSE MOTTO IS WE RESCUE APPETITES MAY FORCE THE TV NETWORK TO CHANGE THE SHOW'S NAME IT ALL BEGAN THREE YEARS AGO WHEN CBS WENT AFTER THE COUPLE WHO OWN THE RESTAURANT JAMES AND ROSE MARIE MERCADANTE FOR TRYING TO REGISTER A TRADEMARK ON A CANDY BAR THEY HAD BEEN SELLING CALLED THE 911 RESCUE BAR ALTHOUGH THE COUPLE HAD BEEN SELLING THE BAR SINCE 1985 THEY DECIDED TO SEEK A TRADEMARK BECAUSE THEY WERE REVISING THE PACKAGING CBS MAINTAINED THAT THE CANDY BAR'S NAME AND REVISED PACKAGING TOO CLOSELY RESEMBLED THE NETWORK'S REGISTERED TRADEMARK ON THE TELEVISION SERIES AND ON THE NETWORK'S LICENSED RESCUE 911 MERCHANDISE WHICH INCLUDES MUGS CAPS AND TSHIRTS BUT THE MERCADANTES ARGUED THAT THEY BEGAN SELLING THEIR CANDY BARS AS WELL AS 911 RESCUE TEAM TSHIRTS FOUR YEARS BEFORE THE DEBUT OF THE TELEVISION SHOW WHICH IS HOSTED BY WILLIAM SHATNER AND FEATURES REAL AND REENACTED POLICE EMERGENCIES THE COUPLE FILED A COUNTERCLAIM WITH THE US PATENT AND TRADEMARK OFFICE ARGUING THAT THE REGISTRATION OF THE NETWORK'S TRADEMARK SHOULD BE NULLIFIED SINCE IT TOO CLOSELY RESEMBLED THE NAME OF THEIR CANDY BARS THIS WEEK THE MERCADANTES WON THE PATENT OFFICE DISMISSED CBS'S OBJECTIONS AND WITHDREW ITS REGISTRATION OF THE SHOW'S TRADEMARK THE PATENT OFFICE IN EFFECT RULED THAT THE MERCADANTES HAD THE RIGHT TO USE THEIR TRADEMARK BY VIRTUE OF THEIR YEARS OF SELLING THE CANDY BAR IT BECAME A MATTER OF PRINCIPLE SAYS THE COUPLE'S 36YEAROLD SON DINO WHO SAYS HIS PARENTS NOW INTEND TO SUE CBS IN FEDERAL COURT DEMANDING THE NETWORK TO STOP USING THE TRADEMARK AND PAY DAMAGES IT'S OUR MARK THEY SHOULDN'T BE USING IT FOR THE MOMENT RESCUE 911 WHICH IS BROADCAST IN 55 COUNTRIES AND SEEN BY MORE THAN 20 MILLION VIEWERS EACH WEEK REMAINS SAFE THE NETWORK PLANS TO APPEAL THE PATENT OFFICE'S DECISION AND WILL FIGHT ANY FEDERAL COURT SUIT SAYS DOUG JONES CBS'S ASSOCIATE GENERAL COUNSEL WE WILL VIGOROUSLY DEFEND AGAINST ANY ACTION LIKE THAT AND HAVE NO PLANS TO CHANGE THE NAME OF THE SHOW HE SAYS ANOTHER ATTORNEY WHO REPRESENTS CBS IN THE CASE ADDED THE FACT THAT YOU'RE NOT ALLOWED TO REGISTER A TRADEMARK DOESN'T MEAN YOU CAN'T USE IT MEANWHILE OUT IN LOS ANGELES WHERE RESCUE 911 IS PRODUCED THE SHOW'S CREATORS AREN'T RUSHING TO DECLARE AN EMERGENCY JUST YET SAYS SHIRIN AMINI ASSISTANT TO THE SHOW'S PRODUCER REALLY AT THIS MOMENT THERE IS NO CONCERN 9308060180 930806 INTERNATIONAL BARCLAYS POSTS GAIN FOR FIRST HALF DESPITE SURPRISING US LOSS LONDON JUST AS BARCLAYS PLC SEEMED TO BE TURNING THE CORNER IN ITS UK BUSINESS IT RAN INTO UNEXPECTED PROBLEMS ON THE OTHER SIDE OF THE ATLANTIC AFTER REPORTING IN 1992 ITS FIRST LOSS EVER AND SLASHING ITS DIVIDEND BRITAIN'S LARGEST COMMERCIAL BANK ANNOUNCED A SIXFOLD INCREASE IN THIS YEAR'S FIRSTHALF CONSOLIDATED PRETAX PROFIT TO 335 MILLION 5023 MILLION FROM A YEAREARLIER 51 MILLION BUT THE ANNOUNCEMENT WAS MARRED BY NEWS OF A 285 MILLION LOSS IN THE US WHERE BARCLAYS SAID IT MADE SUBSTANTIAL PROVISIONS FOR LOSSES RELATING TO US PROPERTY AND OTHER COMMERCIAL LENDING THE SIZE OF THE US LOSS CAUGHT ANALYSTS BY SURPRISE THOUGH BARCLAYS HAD WARNED THAT IT WAS REORGANIZING US OPERATIONS WE HAD RATHER HAD THE IMPRESSION THAT MOST OF THE PROBLEMS IN THE US WERE BEHIND THEM SAID ALISON DEUCHARS AN ANALYST AT LEHMAN BROS IN LONDON AFTER RISING TO 510 PENCE 765 YESTERDAY ON LONDON'S STOCK EXCHANGE IMMEDIATELY AFTER RESULTS WERE ANNOUNCED BARCLAYS SHARES FELL BACK TO 498 PENCE DOWN FOUR PENCE FROM WEDNESDAY DURING THE RECENTLY ENDED FIRST HALF BARCLAYS BENEFITED FROM LOWER PROVISIONS FOR LOSSES ON ITS DOMESTICLENDING BUSINESS IN THE UNITED KINGDOM AND FROM STRONG PROFIT AT ITS INVESTMENTBANKING ARM BARCLAYS DE ZOETE WEDD THE BANK SAID IT WOULD PAY AN INTERIM DIVIDEND OF 65 PENCE DOWN FROM A YEAREARLIER 915 PENCE BUT IN LINE WITH THE LOWER TOTAL DIVIDEND PAID FOR 1992 MEANWHILE BARCLAYS CHAIRMAN ANDREW BUXTON SAID THE BANK IS AT AN ADVANCED STAGE IN ITS SEARCH FOR A NEW CHIEF EXECUTIVE BARCLAYS HAS BEEN LOOKING OUTSIDE THE BANK FOR SOMEONE TO SHARE THE TOP JOB AT THE BANK WITH MR BUXTON WHO CURRENTLY IS BOTH CHAIRMAN AND CHIEF EXECUTIVE BARCLAYS ALSO IS PRESSING AHEAD WITH MEASURES TO CUT COSTS IT SAID IN THE LAST SIX MONTHS THE BANK CLOSED 128 BRANCHES BRINGING TOTAL BRANCHES DOWN TO 2148 BARCLAYS PLANS TO REDUCE THE NUMBER TO 1900 BY THE END OF 1994 9308060179 930806 MEN'S WEARHOUSE SALES GAIN FREMONT CALIF MEN'S WEARHOUSE INC SAID SALES FOR JULY INCREASED 392 TO 142 MILLION FROM 102 MILLION A YEAR AGO COMPARABLESTORE SALES WERE UP 162 THE COMPANY SAID 9308060178 930806 KLEINWORT BENSON POSTS JUMP OF 98 IN FIRSTHALF PROFIT SPECIAL TO THE WALL STREET JOURNAL LONDON UK INVESTMENT BANKING CONCERN KLEINWORT BENSON GROUP PLC SAID ITS PRETAX PROFIT FOR THE 1993 SIX MONTHS SOARED 98 TO 422 MILLION 633 MILLION FROM 213 MILLION BUT THAT THE OUTLOOK FOR THE REMAINDER OF THE YEAR IS FAR FROM CERTAIN THE COMPANY SAID INTERNATIONAL TENSIONS AND POTENTIAL PROBLEMS IN WORLD TRADE MADE THE OUTLOOK UNCERTAIN BUT WE BELIEVE WE ARE SOUNDLY BASED TO PURSUE A POLICY OF FURTHER GROWTH KLEINWORT'S PROFIT ATTRIBUTABLE TO SHAREHOLDERS MORE THAN DOUBLED TO 317 MILLION FROM 141 MILLION THE INTERIM RESULTS REFLECT FAVORABLE MARKET CONDITIONS AND GREATLY IMPROVED RESULTS FROM ALL DIVISIONS THE COMPANY SAID TREASURY AND EQUITY DIVISIONS PERFORMED PARTICULARLY WELL WITH THE EQUITIES GROUP BENEFITING FROM ACTIVE WORLD STOCK MARKETS THE COMPANY SAID CORPORATE FINANCE ALSO SAW SIGNIFICANTLY MORE ACTIVITY THAN LAST YEAR CREDIT QUALITY IMPROVED IN THE INTERIM AND THE PROVISION AT INTERIM WAS NOT SIGNIFICANT THE COMPANY SAID PROJECT AND EXPORT FINANCING BUSINESS ALSO HAS BEEN HIGHER THE COMPANY SAID 9308060177 930806 WHO'S NEWS RIVERWOOD INTERNATIONAL CORP RIVERWOOD INTERNATIONAL CORP ATLANTA BETTE B ANDERSON 64 YEARS OLD WAS ELECTED A DIRECTOR OF THIS PACKAGING AND PAPERPRODUCT MAKER EXPANDING THE BOARD TO 15 MEMBERS MS ANDERSON IS PRESIDENT OF KELLY ANDERSON & ASSOCIATES A MANAGEMENT CONSULTING FIRM IN WASHINGTON 9308060176 930806 WHO'S NEWS ROTOROOTER INC ROTOROOTER INC CINCINNATI JEROME E SCHNEE 52 YEARS OLD DEAN OF THE UNIVERSITY OF CINCINNATI'S COLLEGE OF BUSINESS ADMINISTRATION WAS ELECTED A DIRECTOR OF THIS PROVIDER OF DRAINCLEANING AND PLUMBINGREPAIR SERVICES THE MOVE INCREASES THE SIZE OF ROTOROOTER'S BOARD TO 22 MEMBERS 9308060175 930806 WHO'S NEWS WACHOVIA CORP WACHOVIA CORP WINSTONSALEM NC JOHN C MCLEAN JR 44 YEARS OLD WAS APPOINTED COMPTROLLER OF THIS BANKING CONCERN MR MCLEAN HAD BEEN MANAGER OF MANAGEMENT ACCOUNTING AND FINANCIAL ANALYSIS HE SUCCEEDS ROBERT S MCCOY JR 55 WHO BECAME CHIEF FINANCIAL OFFICER LAST FALL 9308060174 930806 WHO'S NEWS FORMER CEO RESIGNS VICE CHAIRMAN'S POST AT SIGNAL APPAREL CO CHATTANOOGA TENN SIGNAL APPAREL CO WHICH LAST MONTH BROUGHT IN A TEAM OF OUTSIDE MANAGERS TO RUN THE COMPANY SAID ITS FORMER CHIEF EXECUTIVE ROGER HOLLAND RESIGNED AS VICE CHAIRMAN MR HOLLAND 52 YEARS OLD WAS PRESIDENT AND CHIEF EXECUTIVE FOR THREE YEARS UNTIL MIDJULY WHEN THE CLOTHING MANUFACTURER BROUGHT IN ASSOCIATES OF GRISANTI GALEF & GOLDRESS INC BASED IN LOS ANGELES WHICH SPECIALIZES IN HELPING COMPANIES DEVELOP TURNAROUND STRATEGIES SINCE THEN MARVIN A DAVIS HAS BEEN CHIEF EXECUTIVE AND CHAIRMAN WHILE REMAINING PRESIDENT OF GRISANTI LEE N KATZ ANOTHER GRISANTI ASSOCIATE HAS BEEN PRESIDENT MR HOLLAND COULDN'T BE REACHED FOR COMMENT SIGNAL APPAREL HAS POSTED LOSSES IN RECENT QUARTERS AND EXPERIENCED GROWING PRESSURE ON SELLING PRICES THE STOCK PRICE HAS STEADILY FALLEN SINCE EARLY LAST YEAR YESTERDAY IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE SIGNAL APPAREL WAS DOWN 50 CENTS AT 7625 9308060173 930806 WHO'S NEWS QANTAS AIRWAYS LTD QANTAS AIRWAYS LTD SYDNEY AUSTRALIA JAMES STRONG WAS APPOINTED THE SUCCESSOR FOR MANAGING DIRECTOR JOHN WARD WHO ANNOUNCED HIS RESIGNATION LAST FRIDAY MR STRONG IS CURRENTLY A DIRECTOR ON THE QANTAS BOARD AND IS ALSO GROUP MANAGING DIRECTOR OF THE NEW ZEALAND BREWING COMPANY DB GROUP LTD HE WAS THE CHIEF EXECUTIVE OFFICER OF AUSTRALIAN AIRLINES BETWEEN 1986 AND 1989 AUSTRALIAN AIR WAS MERGED WITH QANTAS EARLIER THIS YEAR MR STRONG WILL TAKE OVER AS MANAGING DIRECTOR IN LATE OCTOBER MR WARD'S RESIGNATION IS EFFECTIVE AS OF NEXT THURSDAY AND QANTAS SAID CHAIRMAN GARY PEMBERTON WILL ACT AS MANAGING DIRECTOR UNTIL MR STRONG ARRIVES 9308060172 930806 WHO'S NEWS NATIONAL SANITARY SUPPLY CO NATIONAL SANITARY SUPPLY CO CINCINNATI JEROME E SCHNEE 52 YEARS OLD DEAN OF THE COLLEGE OF BUSINESS ADMINISTRATION AT THE UNIVERSITY OF CINCINNATI WAS ELECTED A DIRECTOR OF THIS DISTRIBUTOR OF SANITARY MAINTENANCE SUPPLIES HIS ELECTION EXPANDS THE BOARD TO 23 MEMBERS 9308060171 930806 WHO'S NEWS DIMARK INC DIMARK INC LANGHORNE PA THIS DATABASE MARKETING COMPANY ELECTED THREE OUTSIDE DIRECTORS DENNIS J KAIN 41 YEARS OLD CHIEF EXECUTIVE OFFICER OF THE LOWER BUCKS HOSPITAL IN BRISTOL PA RICHARD J CENSITS 56 CHIEF EXECUTIVE OFFICER PRESIDENT AND CHAIRMAN OF MEDQUIST INC GIBBSBORO NJ AND WILLIAM E LEARNARD 57 MANAGING DIRECTOR OF THE TRIDENT GROUP AMBLER PA THE BOARD GROWS TO EIGHT MEMBERS 9308060170 930806 WHO'S NEWS CHAMBERS DEVELOPMENT CO CHAMBERS DEVELOPMENT CO PITTSBURGH PETER J GIBBONS 57 YEARS OLD WAS ELECTED A DIRECTOR OF THIS WASTE MANAGEMENT COMPANY EXPANDING THE BOARD TO EIGHT MEMBERS MR GIBBONS A RETIRED SENIOR PARTNER AT ACCOUNTING FIRM PRICE WATERHOUSE HAD BEEN RETAINED BY CHAMBERS'S MAJOR LENDERS TO REVIEW ITS FINANCIAL CONDITION AND BUSINESS PLANS 9308060169 930806 WHO'S NEWS PENN ENGINEERING & MANUFACTURING CORP PENN ENGINEERING & MANUFACTURING CORP DANBORO PA KENNETH A SWANSTROM 53 YEARS OLD WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER BY THE MAKER OF FASTENERS FOR COMPUTER PRODUCTS HE SUCCEEDS HIS FATHER KA SWANSTROM THE COMPANY'S FOUNDER WHO DIED IN MAY THE JUNIOR MR SWANSTROM HAD BEEN PRESIDENT AND CHIEF OPERATING OFFICER SINCE 1979 HE REMAINS AS PRESIDENT 9308060168 930806 WHO'S NEWS SONY CORP SONY CORP TOKYO MITCHELL CANNOLD 44 YEARS OLD WAS NAMED VICE PRESIDENT FOR NEW TECHNOLOGIES OF THIS ELECTRONICS CONCERN'S AMERICAN UNIT SONY CORP OF AMERICA IN ADDITION TO THIS NEWLY CREATED POSITION MR CANNOLD WILL RETAIN HIS POST AS PRESIDENT OF NEW TECHNOLOGIES FOR SONY PICTURES ENTERTAINMENT 9308060167 930806 SPAIN PORTUGAL LURE INVESTORS TO DEBT MARKET EMS PARTICIPATION DRAWS FOREIGNERS ATTRACTED TO HIGHER YIELD BONDS BY CARLTA VITZTHUM STAFF REPORTER OF THE WALL STREET JOURNAL MADRID HIGH YIELDS SLUGGISH ECONOMIES AND THE PROSPECT OF LOWER INTEREST RATES HAVE INCREASED THE ALLURE THIS YEAR OF SPANISH AND PORTUGUESE GOVERNMENT BONDS BOTH RELATIVE NEWCOMERS TO THE EUROPEAN DEBT MARKET EVEN AS SPAIN AND PORTUGAL GRAPPLE WITH ECONOMIC RECESSION INTEREST RATES HAVE BEEN KEPT HIGH TO UNDERPIN THE IBERIAN CURRENCIES AND ATTRACT ENOUGH FUNDS TO FINANCE SWELLING BUDGET DEFICITS MEMBERSHIP IN THE EUROPEAN MONETARY SYSTEM ALSO HAS HELPED ALLAY INVESTOR FEARS OF ERRATIC EXCHANGERATE FLUCTUATIONS AND OTHER SYMPTOMS OF AN UNDISCIPLINED MONETARY POLICY ALL THAT COULD CHANGE IF THE RECENT WAVE OF CURRENCY CONVULSIONS EVENTUALLY SUCCEEDS AT RIPPING ASUNDER THE EMS BECAUSE IT REDUCES THE RISK OF CURRENCY LOSSES PARTICIPATION IN THE SYSTEM'S EXCHANGE RATE MECHANISM HAS PLAYED A KEY ROLE IN DRAWING YIELDHUNGRY FOREIGNERS TO THE IBERIAN MARKETS CURRENTLY NONRESIDENTS HOLD ABOUT 30 OF SPAIN'S OUTSTANDING BONDS AND 5 OF PORTUGAL'S WAGERING ON AN ACROSSTHEBOARD DROP IN RATES FOLLOWING MAY'S DEVALUATION OF SPAIN'S PESETA AND PORTUGAL'S ESCUDO INVESTORS HAVE BOUGHT UP SPANISH AND PORTUGUESE BONDS WITH THE HOPE OF LOCKING IN HIGH BOND YIELDS BEFORE RATES GO DOWN IN FACT BOND PRICES IN BOTH SPAIN AND PORTUGAL SURGED ON MONDAY AFTER THE COUNTRIES' ERM BANDS WERE WIDENED TO 15 FROM 6 THIS WEEKEND AND AGAIN ON TUESDAY IN SPAIN AFTER THE CENTRAL BANK TRIMMED ITS BENCHMARK INTEREST RATE BY 05 POINT TO 11 WE'VE SEEN AN INCREDIBLE INFLOW OF MONEY SINCE THE WEEKEND SAYS ALLEN PURKISS A BOND ANALYST AT MADRID BROKERAGE FG INVERSIONES BURSATILES SA WHAT'S HAPPENED HAS LIFTED A CLOUD BECAUSE SPAIN NEEDS TO LOWER INTEREST RATES TO STIMULATE THE ECONOMY HOW FAST RATES CONTINUE TO DROP IN SPAIN WILL DEPEND ON THE NEW GOVERNMENT'S POLICIES TO ARREST THE COUNTRY'S DEEPENING CRISIS FREE OF THESE POLITICAL RESTRAINTS THE BANK OF PORTUGAL IS EXPECTED TO PROCEED MORE RAPIDLY WITH RATE CUTS IN SPAIN THE KEY QUESTION IS HOW THE NEW GOVERNMENT WILL TACKLE 22 UNEMPLOYMENT AND A BUDGET DEFICIT PROJECTED TO EXCEED 65 OF GROSS DOMESTIC PRODUCT THIS YEAR WITHOUT FUELING INFLATION TO FIND OUT BOND INVESTORS ARE EAGERLY AWAITING THE 1994 BUDGET WHICH WILL BE RELEASED IN SEPTEMBER AS THE BIGGER AND WEALTHIER OF THE TWO COUNTRIES SPAIN GENERALLY KEEPS A STEP AHEAD OF PORTUGAL IN THE RACE TO CATCH UP WITH THE REST OF THE EUROPEAN COMMUNITY THE PESETA FOR EXAMPLE JOINED THE ERM IN 1989 THREE YEARS BEFORE THE ESCUDO SPAIN WAS THE FIRST OF THE TWO IBERIAN COUNTRIES TO FOLLOW THE REST OF EUROPE DOWN THE ROAD OF RECESSION AND PORTUGAL IS EXPECTED TO FOLLOW SUIT UNEMPLOYMENT IN PORTUGAL ROSE FROM 42 AT THE END OF 1992 TO ABOUT 6 AND THE BUDGET DEFICIT IS AROUND 46 OF GROSS DOMESTIC PRODUCT THE PORTUGUESE ECONOMY WILL PROBABLY GROW JUST UNDER 1 THIS YEAR AND COULD CONTRACT BY THE SAME AMOUNT NEXT YEAR ALTHOUGH RECENT RATES CUTS WILL OFFER SOME RELIEF THE SPANISH ECONOMY IS EXPECTED TO SHRINK ALMOST 1 THIS YEAR BONDS LIKE WEAK ECONOMIES BECAUSE IT MEANS LOWER INFLATION SAYS TIM STEWART VICE PRESIDENT OF GLOBAL INVESTMENTS AT BANKERS TRUST CO IN LONDON IN FACT AVERAGE ANNUAL INFLATION IN PORTUGAL SLOWED TO 89 IN 1992 FROM 11 A YEAR EARLIER AND IS EXPECTED TO END 1993 AT AROUND 68 WHICH HAS ENABLED THE COUNTRY TO LENGTHEN BOND MATURITIES INFLATION FEARS SO HAUNTED PORTUGAL THAT FIVEYEAR FIXEDINCOME COUPON BONDS WEREN'T ISSUED UNTIL DECEMBER 1992 COINCIDING WITH THE REMOVAL OF THE COUNTRY'S REMAINING CAPITAL CONTROLS FOLLOWING ITS SUCCESS THE TREASURY BEGAN TO ISSUE SEVENYEAR COUPON BONDS IN APRIL AND TENYEAR COUPON BONDS IN JUNE THESE BONDS KNOWN AS OBRIGACOES DO TESOURO PAY INTEREST SEMIANNUALLY UNTIL THIS YEAR THE GOVERNMENT REFINANCED ITS DEBT LARGELY THROUGH THE ISSUE OF SHORTTERM TREASURY BILLS WHICH GAVE THE MARKET AN INVERTED OR NEGATIVE YIELD CURVE THAT MEANT RATES ON THE SHORTEND OF THE CURVE WERE HIGHER THAN ON THE LONG END SIGNALING UNDERLYING ECONOMIC PROBLEMS SUCH AS INFLATION WITH THE LAUNCH OF THE SEVEN AND 10YEAR BONDS THE CURVE HAS FLATTENED SETTLEMENT OF BOND TRANSACTIONS TAKES PLACE FOUR DAYS AFTER THE PURCHASE DATE INVESTORS ARE REQUIRED TO LODGE THE BONDS WITH A PORTUGUESE CUSTODIAN AND CAN ONLY SETTLE THEIR TRANSACTIONS OUTSIDE PORTUGAL THROUGH AN OFFICIAL DEPOSITOR BANK SAFE CUSTODY CHARGES ARE MINIMAL AND THE BONDS ARE TRADED ELECTRONICALLY ON THE PORTUGUESE STOCK EXCHANGE ONE OF THE BIGGEST DRAWBACKS FOR NONRESIDENTS IS THE 20 WITHHOLDING TAX ON GOVERNMENT BONDS AND TREASURY BILLS TREASURY OFFICIALS ARE SAID TO BE STUDYING THE POSSIBILITY OF RESCINDING THE TAX IN AN EFFORT TO SPUR THE MARKET JUST AS SPAIN DID IN 1990 BY REPEALING ITS 25 WITHHOLDING TAX FOR NONRESIDENTS THE SPANISH TREASURY CURRENTLY ISSUES BONOS DEL ESTADO THREE AND FIVEYEAR ANNUAL COUPON BONDS AND OBLIGACIONES DEL ESTADO 10YEAR ANNUAL COUPON BONDS THAT WERE FIRST INTRODUCED IN MARCH 1991 THESE BONDS ARE ISSUED MONTHLY BY TENDER BUT CAN BE ACQUIRED BY INDIVIDUAL INVESTORS AT ALMOST ALL BANKS AND BROKERAGES FOR 10000 PESETAS A UNIT THEY ARE REDEEMED AT PAR 9308060166 930806 WHO'S NEWS JOY TECHNOLOGIES INC JOY TECHNOLOGIES INC PITTSBURGH BRIAN J WATT 53 YEARS OLD RESIGNED AS PRESIDENT OF THE ENVIRONMENTAL GROUP ONE OF THE COMPANY'S TWO MAIN BUSINESSES TO PURSUE OTHER INTERESTS JOY TECHNOLOGIES SAID MARC F WRAY ITS CHAIRMAN AND CHIEF EXECUTIVE WILL HAVE DIRECT RESPONSIBILITY FOR THE UNIT AND HEADS A SENIOR MANAGEMENT COMMITTEE THAT WILL MANAGE THE GROUP UNTIL A SUCCESSOR TO MR WATT IS NAMED JOY IS A MANUFACTURER AND SERVICER OF MINING EQUIPMENT AND A SUPPLIER OF AIRPOLLUTION CONTROL AND ASHHANDLING EQUIPMENT 9308060165 930806 COASTAL CORP UNIT'S PURCHASE HOUSTON COASTAL CORP SAID ITS UNIT ANR PIPELINE CO WILL PURCHASE AN INTEREST IN CERTAIN NATURAL GAS TRANSMISSION FACILITIES FROM ARKLA INC FOR ABOUT 90 MILLION SPECIFICALLY COASTAL IS PURCHASING 250 MILLION CUBIC FEET A DAY OF CAPACITY IN THE LINE AC PIPELINE CONNECTING CUSTER OKLA AND PERRYVILLE LA 9308060164 930806 INTERNATIONAL SWISS UNEMPLOYMENT RATE RISES BERN SWITZERLAND THE UNEMPLOYMENT RATE IN SWITZERLAND HIT 46 IN JULY UP FROM 44 IN JUNE THE GOVERNMENT SAID THE GOVERNMENT TALLIED 165290 PEOPLE AS UNEMPLOYED NEARLY 5000 MORE THAN IN JUNE WHILE IT COUNTED 5645 JOBS AS OPEN DOWN 300 FROM JUNE 9308060163 930806 HILO AUTOMOTIVE JULY SALES HOUSTON HILO AUTOMOTIVE INC SAID SAMESTORE SALES INCREASED 49 IN JULY WHILE TOTAL SALES JUMPED 135 TO 209 MILLION FROM 184 MILLION A YEAR EARLIER FOR THE SEVEN MONTHS ENDED JULY 31 THE AUTOMOTIVE PARTS RETAILER SAID SALES INCREASED 78 TO 1179 MILLION FROM 1094 MILLION A YEAR EARLIER SAMESTORE SALES SLIPPED 09 DURING THE MOST RECENT SEVENMONTH PERIOD 9308060162 930806 WHO'S NEWS CS FIRST BOSTON AIDE FOR CAPITAL MARKETS JOINS MORGAN STANLEY NEW YORK WALID CHAMMAH CREDITED WITH BUILDING CS FIRST BOSTON CORP'S ASSETBACKED BUSINESS BOLTED ACROSS WALL STREET TO JOIN MORGAN STANLEY & CO AS HEAD OF US DEBT CAPITAL MARKETS MR CHAMMAH 39 YEARS OLD JOINS MORGAN STANLEY AS A MANAGING DIRECTOR AND WILL REPORT TO JEFFREY SALZMAN MANAGING DIRECTOR IN CHARGE OF GLOBAL DEBT CAPITAL MARKETS MR SALZMAN WHO HAD DIRECTED THE GLOBAL OPERATION FROM NEW YORK WILL MOVE TO LONDON A SPOKESMAN FOR CS FIRST BOSTON SAID RICHARD DUBUSC A MANAGING DIRECTOR WOULD TAKE OVER MR CHAMMAH'S RESPONSIBILITIES AS ACTING HEAD OF FIXEDINCOME CAPITAL MARKETS MR CHAMMAH HAD BEEN AT FIRST BOSTON SINCE 1978 MORGAN STANLEY ALSO SAID KAREN BECHTEL AND STEPHEN MUNGER BOTH MANAGING DIRECTORS WERE NAMED COHEADS OF THE FINANCIAL ENTREPRENEURS GROUP THEY FILL A VACANCY LEFT BY ROBERT LESSIN WHO JOINED PRIMERICA CORP'S SMITH BARNEY HARRIS UPHAM & CO UNIT IN JUNE WILLIAM REID AND KAREN BECHTEL BOTH MANAGING DIRECTORS WERE APPOINTED COHEADS OF MORGAN STANLEY & CO'S FINANCIAL ENTREPRENEUR GROUP AND STEPHEN MUNGER ALSO A MANAGING DIRECTOR JOINED THE GROUP IN AN ARTICLE FRIDAY THE COMPANY INCORRECTLY SAID MR MUNGER WOULD BE COHEAD OF THE GROUP 9308060161 930806 SHARPER IMAGE JULY SALES SLIPPED SAN FRANCISCO SHARPER IMAGE CORP SAID JULY SALES FELL 27 TO 9 MILLION FROM 93 MILLION A YEAR EARLIER SALES FOR STORES OPEN AT LEAST ONE YEAR FELL 47 THE COMPANY SAID 9308060160 930806 WHO'S NEWS MICROAGE INC MICROAGE INC TEMPE ARIZ KENNETH R WATERS 42 YEARS OLD WAS NAMED PRESIDENT OF THIS COMPUTER RESELLER HE SUCCEEDS WILLIAM KEIPER 42 WHO RESIGNED IN JANUARY TO BECOME PRESIDENT AND CHIEF OPERATING OFFICER OF ARTISOFT INC A COMPUTER NETWORK SYSTEM PROVIDER BASED IN TUCSON ARIZ MR WATERS WAS PREVIOUSLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF POWER UP SOFTWARE CORP A SOFTWARE MAKER BASED IN SAN MATEO CALIF 9308060159 930806 FLORIDA BLUE CROSS TO PAY 10 MILLION TO SETTLE US SUIT JACKSONVILLE FLA BLUE CROSS & BLUE SHIELD OF FLORIDA INC WILL PAY 10 MILLION TO THE FEDERAL GOVERNMENT TO SETTLE ALLEGATIONS IT MISHANDLED MEDICARE CLAIMS RESULTING IN HIGHER COSTS TO THE US GOVERNMENT THE PAYMENT RESOLVES A SUIT FILED IN US DISTRICT COURT IN JACKSONVILLE IN 1991 IN WHICH THE FEDERAL GOVERNMENT ALLEGED THAT FLORIDA BLUE CROSS BYPASSED COMPUTER AUDITS CREATED FALSE PRESCRIPTIONS AND PAID DUPLICATE CLAIMS TO MEDICARE PROVIDERS THE GOVERNMENT ALLEGED THAT MISMANAGEMENT OCCURRED AFTER FLORIDA BLUE CROSS AWARDED THE MEDICARE CLAIMSPROCESSING CONTRACT TO GTE DATA SERVICES INC A UNIT OF GTE CORP IN 1988 AND GTE'S SYSTEM CREATED A BACKLOG THE GTE UNIT WILL PAY 95 MILLION TO FLORIDA BLUE CROSS IN A SETTLEMENT OF CONTRACTUAL DAMAGES BLUE CROSS SAID DOUGLAS HILL VICE PRESIDENT OF COMMERCIAL SERVICES FOR THE GTE UNIT SAID THE COMPANY HAD TAKEN A RESERVE IN PRIOR YEARS TO COVER THE ANTICIPATED SETTLEMENT IN THE RUSH TO GET IN THE NEW COMPUTER SYSTEM THERE WERE DELAYS MR HILL SAID FLORIDA BLUE CROSS SAID WHEN IT INITIALLY CONVERTED TO THE GTE COMPUTER SYSTEM THE SYSTEM WAS UNABLE TO HANDLE THE LARGE WORKLOAD BLUE CROSS SAID THAT THE SYSTEM NOW IS EFFECTIVE AND HAS HELPED REDUCE COSTS BLUE CROSS ESTABLISHED A RESERVE TO HANDLE THE POTENTIAL LIABILITY FROM THE CASE WHEN THE SUIT WAS FILED AND WON'T BOOST RATES BECAUSE OF THE AGREEMENT A SPOKESMAN SAID 9308060158 930806 REED ELSEVIER PRETAX PROFIT ROSE 24 IN HALF AT ACTUAL EXCHANGE RATES PUBLISHER'S EARNINGS TOTALED 3869 MILLION SPECIAL TO THE WALL STREET JOURNAL LONDON REED ELSEVIER SAID PRETAX PROFIT EXCLUDING SPECIAL GAINS ROSE 24 IN THE FIRST HALF FROM A YEAR EARLIER AT ACTUAL EXCHANGE RATES AND 13 AT CONSTANTCURRENCY RATES AT CONSTANT CURRENCY RATES PRETAX PROFIT TOTALED 258 MILLION 3869 MILLION UP FROM A PRO FORMA 229 MILLION A YEAR EARLIER WHICH IS BEFORE THE COMBINED GROUP EXISTED AT ACTUAL CURRENCY RATES REED ELSEVIER'S PRETAX PROFIT AMOUNTED TO 281 MILLION POUNDS COMPARED TO A PRO FORMA 227 MILLION POUNDS A YEAR AGO SALES GAINED 12 TO 139 BILLION FROM 124 BILLION REED ELSEVIER WAS FORMED JAN 1 FROM THE UK'S REED INTERNATIONAL PLC AND ELSEVIER NV OF THE NETHERLANDS THE ANGLODUTCH PUBLISHER SAID THE RESULT EXCLUDES THE 16 MILLION PROFIT ON THE SALE OF REED'S STAKE IN BRITISH SKY BROADCASTING LTD THE RESULT INCLUDES 17 MILLION IN UNUSUAL GAINS IN THE YEAREARLIER PERIOD REED ELSEVIER'S PRETAX PROFIT ON BOTH ACTUAL AND CONSTANT CURRENCY BASIS WAS ABOVE MARKET ESTIMATES REED AND ELSEVIER RETAIN SEPARATE LISTINGS ON THE LONDON AND AMSTERDAM STOCK EXCHANGES BUT AFTER RISING IN EARLY TRADING YESTERDAY BOTH STOCKS CLOSED DOWN ON THE LONDON STOCK EXCHANGE REED SHARES FELL FOUR PENCE TO 660 PENCE IN AMSTERDAM ELSEVIER FELL 110 GUILDERS TO 13570 GUILDERS 57 CENTS TO 7053 DIVIDENDS PAID TO BOTH SETS OF SHAREHOLDERS ARE EQUIVALENT AFTER ACCOUNTING FOR A LARGER NUMBER OF REED SHARES REED RAISED ITS INTERIM DIVIDEND 91 TO 60 PENCE FROM 55 PENCE ELSEVIER DECLARED A 167 GUILDER INTERIM DIVIDEND ITS FIRST SUCH PAYMENT REED ELSEVIER SOLD REED'S 366 STAKE IN BSKYB A SATELLITE TELEVISION VENTURE LED BY RUPERT MURDOCH IN FEBRUARY TO OTHER MEMBERS OF THE CONSORTIUM FOR 623 MILLION IN A JOINT STATEMENT ELSEVIER CHAIRMAN PIERRE VINKEN AND REED CHAIRMAN PETER DAVIS SAID THE GROUP MADE GOOD PROGRESS IN THE FIRST SIX MONTH OF ITS EXISTENCE INTEGRATING ITS BUSINESSES AT THE SAME TIME THEY SAID THE GROUP WAS ABLE TO FOCUS ON STRATEGIC MOVES SUCH AS SELLING THE BSKYB STAKE BUYING 96 OF EDITIONS TECHNIQUES SA A FRENCH LEGAL PUBLISHER AND PUTTING IN AN AGREEDTO BID TO BUY OFFICIAL AIRLINES GUIDE INC FROM THE ADMINISTRATORS OF MAXWELL COMMUNICATION CORP THE TWO MEN WARNED THOUGH THAT ECONOMIC CONDITIONS REMAIN DIFFICULT IN TWO OF OUR MAJOR MARKET THE UK AND THE US AND HAVE DETERIORATED FURTHER IN CONTINENTAL EUROPE REED'S CONSUMER MAGAZINES IN BRITAIN SAW PROFIT RISE 23 WHILE ITS UK NEWSPAPER PROFIT FELL 6 BECAUSE OF DEVELOPMENT COSTS ELSEVIER'S DUTCH NEWSPAPER PUBLISHER DAGBLADUNIE INCREASED PROFIT 11 DESPITE A FALL IN ADVERTISING REVENUE REED ELSEVIER IS OWNED EQUALLY BY REED AND ELSEVIER BUT REED SEPARATELY HOLDS A 58 STAKE IN ELSEVIER ITSELF THEREFORE REED'S PORTION OF COMBINED PROFIT IS 529 ITS PRETAX PROFIT WAS 157 MILLION UP 14 FROM 138 MILLION AND ITS ATTRIBUTABLE PROFIT WAS 114 MILLION UP 18 FROM 97 MILLION ELSEVIER'S HALFSHARE OF THE GROUP'S PRETAX PROFIT AMOUNTED TO 408 MILLION GUILDERS UP 18 FROM 347 MILLION GUILDERS ATTRIBUTABLE PROFIT WAS 317 MILLION GUILDERS UP 19 FROM 266 MILLION GUILDERS 9308060157 930806 WHO'S NEWS FREEPORTMCMORAN INC FREEPORTMCMORAN INC NEW ORLEANS GABRIELLE K MCDONALD AND RENE L LATIOLAIS WERE NAMED TO THE BOARD OF THIS MINING AND PRODUCTION COMPANY INCREASING THE BOARD SIZE TO 16 MS MCDONALD IS A MEMBER OF THE WALKER & SATTERTHWAITE LAW FIRM IN AUSTIN TEXAS MR LATIOLAIS IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE COMPANY'S FREEPORTMCMORAN RESOURCE PARTNERS UNIT 9308060156 930806 CANADIAN STEEL PRODUCTION OTTAWA CANADIAN STEEL PRODUCTION TOTALED 267150 METRIC TONS IN THE WEEK ENDED JULY 31 DOWN 51 FROM 281509 TONS THE PREVIOUS WEEK BUT UP 09 FROM 264808 TONS A YEAR EARLIER THE GOVERNMENT SAID A METRIC TON EQUALS 220462 POUNDS TOTAL PRODUCTION FOR THE YEAR THROUGH JULY 31 WAS 8342625 TONS UP 48 FROM 7957663 TONS A YEAR EARLIER 9308060155 930806 DIVIDEND NEWS METRO BANCSHARES INC METRO BANCSHARES INC OF JERICHO NY ANNOUNCED A 3FOR2 STOCK SPLIT PAYABLE SEPT 16 TO SHARES OF RECORD AUG 16 THIS HOLDING COMPANY FOR BAYSIDE FEDERAL SAVINGS BANK DECLARED A SIMILAR STOCK SPLIT LAST AUGUST 9308060154 930806 TECHNOLOGY & HEALTH MCIBRITISH TELECOM VENTURE IS CLOSER TO LAUNCH TECHNICAL HURDLES REMAIN BY RICHARD L HUDSON AND MARY LU CARNEVALE STAFF REPORTERS OF THE WALL STREET JOURNAL MCI COMMUNICATIONS INC AND BRITISH TELECOMMUNICATIONS PLC MOVED CLOSER TO LAUNCHING THEIR JOINT VENTURE IN INTERNATIONAL TELECOMMUNICATIONS SERVICES BUT A BT OFFICIAL SAID THE VENTURE'S TECHNICAL PROBLEMS MAY TAKE YEARS TO SORT OUT THE TWO COMPANIES SAID THEY REACHED DEFINITIVE AGREEMENTS FOR THEIR MUCHPUBLICIZED ALLIANCE UNDER WHICH BRITAIN'S MAIN PHONE COMPANY WILL BUY A 20 MCI STAKE FOR 43 BILLION AND THE COMPANIES WILL JOINTLY PROVIDE INTERNATIONAL SERVICES FOR BIG BUSINESSES BUT BEFORE THE COMPANIES CAN PROVIDE SUCH SERVICES THEY MUST COPE WITH THE INCOMPATIBILITY OF THE PHONE EQUIPMENT USED IN DIFFERENT COUNTRIES RECONCILING THOSE DIFFERENCES IS A MASSIVE CHALLENGE BUT I CERTAINLY DON'T THINK IT'S INSUPERABLE SAID THOMAS ROWBOTHAM A BT EXECUTIVE IN LONDON NAMED TO BE THE VENTURE'S SENIOR VICE PRESIDENT FOR PRODUCT DEVELOPMENT AND ENGINEERING HE SAID A FIVEYEAR TIMESCALE MAY BE NEEDED FOR THE TWO SYSTEMS TO CONVERGE IN WASHINGTON MEANWHILE DANIEL F AKERSON PRESIDENT AND CHIEF OPERATING OFFICER OF MCI SAID THE 43 BILLION IT RECEIVES FROM BT WILL BE USED PRIMARILY TO PURSUE MCI'S MULTIMEDIA STRATEGY MCI'S EFFORTS TO ENTER THE BUSINESS OF PROVIDING MOBILE TELEPHONE AND DATA SERVICES WILL CONSUME PART OF THE FUNDS BUT MR AKERSON STRESSED THAT THE BULK WON'T BE SPENT ON SOME BIG WIRELESS VENTURE WIRELESS IS ONE COMPONENT OF A BROADER MULTIMEDIA STRATEGY HE SAID MULTIMEDIA REFERS TO A RANGE OF NEW SERVICES SPRINGING FROM THE CONVERGENCE OF COMPUTERS PHONES AND TELEVISION MR AKERSON SAID THE REAL STORY RELATIVE TO THE BTMCI TRANSACTION WILL BE HOW WISELY WE INVESTED THE MONEY AND HOW IT STRENGTHENED OR EXPANDED MCI'S FRANCHISE IN THE US MARKET ESSENTIALLY THE COMPANY PLANS TO PURSUE ALLIANCES AND INVESTMENTS ALONG TWO AVENUES LOCAL DISTRIBUTION OF TELECOMMUNICATIONS SERVICES OR REACHING CUSTOMERS WITHOUT GOING THROUGH THE LOCAL PHONE COMPANY AND ADVANCED TELECOMMUNICATIONS APPLICATIONS THAT REQUIRE HIGHCAPACITY NETWORKS ON THE LOCAL FRONT MR AKERSON SAID MCI COULD TEAM WITH ONE OR MORE OF THE REGIONAL BELL COMPANIES OR WITH CABLE COMPANIES IT ALL DEPENDS ON HOW CREATIVE THEY WANT TO BE AS FOR THE TECHNICAL PROBLEMS THE ISSUE ISN'T WHETHER MCI AND BT CUSTOMERS CAN TALK TO EACH OTHER OR SWAP BASIC COMPUTER DATA THEY ALREADY DO THAT USING STANDARD INTERNATIONAL PROTOCOLS RATHER AT STAKE IS HOW QUICKLY THE TWO COMPANIES CAN MAKE THEIR STATEOFTHEART BIGBUSINESS SERVICES WORK TOGETHER FOR INSTANCE PROVIDING SOFTWARE SO THEIR CORPORATE CLIENTS CAN TRACK DOWN AND RECOVER FROM TECHNICAL FAULTS ANYWHERE IN THE WORLD RATHER THAN JUST IN THE PHONE LINES ARRANGED BY BT OR MCI INDIVIDUALLY AT THE MOMENT BT AND MCI HAVE DIFFERENT NETWORKMANAGEMENT SOFTWARE SYSTEMS GIVEN THE GLITCHES THAT ALREADY OCCUR IN INTERNATIONAL TELECOMMUNICATIONS RIGHT NOW IF YOU'RE A CUSTOMER ANYTHING THAT THESE TWO PROVIDE WILL LOOK TREMENDOUS SAID AUDREY MANDELA A LONDON ANALYST FOR YANKEE GROUP A BOSTON TELECOMMUNICATIONSCONSULTING FIRM BUT OVER THE LONGER TERM PEOPLE WILL HAVE REALLY HIGH EXPECTATIONS FOR THE VENTURE AND THEY NEED TO MAKE SURE THEY TAKE CARE OF THESE TECHNICAL ISSUES BT'S MR ROWBOTHAM SAID THE TWO COMPANIES' ENGINEERS HAVE ALREADY DEVISED SOME QUITE ELEGANT OPTIONS FOR CONNECTING THE NETWORKS TOGETHER QUICKLY BUT THE REALITY IS YOU MUST TEST THEM SUCH PROBLEMS WILL GET SOLVED GRADUALLY HE SAID RATHER THAN IN ONE BIG BANG OF ENGINEERING WORK MR ROWBOTHAM SAID THE VENTURE 75 OWNED BY BT AND 25 BY MCI WILL DEVELOP AND PROVIDE COMMON INTERNATIONAL SERVICES THAT THE TWO PARTNERS WILL THEN MARKET AND SUPPLY ON THEIR OWN WITH MCI WORKING IN THE WESTERN HEMISPHERE AND BT WORKING IN THE EASTERN HEMISPHERE THE VENTURE WILL HAVE 1000 TO 2000 EMPLOYEES BESIDES NAMING AS TECHNICAL BOSS MR ROWBOTHAM BT'S 52YEAROLD NETWORK AND SERVICEDEVELOPMENT DRECTOR THE PARTNERS CONFIRMED THAT THE VENTURE'S CHIEF EXECUTIVE OFFICER WILL BE CHRISTOPHER EARNSHAW 39 CURRENTLY MANAGING DIRECTOR OF BT'S WORLDWIDE NETWORKS DIVISION 9308060153 930806 DIVIDEND NEWS CONSECO INC CONSECO INC A CARMEL IND INSURANCE HOLDING COMPANY RAISED ITS QUARTERLY DIVIDEND TO 125 CENTS A SHARE FROM 25 CENTS PAYABLE OCT 1 TO SHAREHOLDERS OF RECORD SEPT 20 9308060152 930806 SURGING US INVESTMENT IN ASIA IS OBSCURED BY INCOMPLETE TALLY BY LAURENCE ZUCKERMAN STAFF REPORTER OF THE WALL STREET JOURNAL PENANG MALAYSIA US COMPANIES ARE INVESTING AND REINVESTING AT A RISING RATE IN ASIA AS THE HUGE FLOWS OF JAPANESE FOREIGN INVESTMENT SEEN IN THE LATE 1980S RECEDE THE US HAS ONCE AGAIN EMERGED AS THE WORLD'S SINGLE LARGEST SOURCE OF FOREIGN DIRECT INVESTMENT YET THE WAY FOREIGN INVESTMENT IS TALLIED BY MOST ASIAN NATIONS HAS CREATED A SYSTEMATIC UNDERESTIMATION OF US INVESTMENT IN THE REGION OBSCURING THE INCREASE IN THE COMMITMENT WHEN PENANG BEGAN PROMOTING ITSELF AS AN INVESTMENT HAVEN IN THE EARLY 1970S US ELECTRONICS COMPANIES SUCH AS NATIONAL SEMICONDUCTOR CORP ADVANCED MICRO DEVICES INC AND HEWLETTPACKARD CO CAME HERE TO SET UP WHAT IN MANY CASES WERE THEIR FIRST OVERSEAS PLANTS TWO DECADES LATER THE CREAM OF THE US ELECTRONICS INDUSTRY IS STILL HEREAND EXPANDING RAPIDLY INTEL CORP NOW OCCUPIES A 30ACRE CAMPUS SIX TIMES THE SIZE OF ITS ORIGINAL SITE AND PLANS TO INVEST 300 MILLION MORE HERE OVER THE NEXT THREE YEARS A MOTOROLA INC PLANT THAT DESIGNS AND MAKES TWOWAY RADIOS AND TELECOMMUNICATIONS EQUIPMENT RECENTLY DOUBLED ITS FACTORY SPACE BUT MALAYSIA'S INVESTMENT DEVELOPMENT AUTHORITY SAYS THE US WAS ONLY THE COUNTRY'S FIFTHLARGEST FOREIGN INVESTOR IN THE 1980S BEHIND JAPAN TAIWAN SINGAPORE AND BRITAIN THAT'S BECAUSE MALAYSIAN OFFICIALS COUNT ONLY NEW PROJECTS THEY HAVE APPROVED NOT FUNDS REINVESTED IN EXISTING OPERATIONS WHILE APPROVED PROJECTS THAT DON'T PAN OUT ARE INCLUDED A 1992 STUDY BY THE US EMBASSY IN KUALA LUMPUR SHOWS THAT CUMULATIVE AMERICAN INVESTMENT IN MALAYSIA'S MANUFACTURING PETROLEUM AND SERVICE INDUSTRIES NEARLY DOUBLED BETWEEN 1987 AND 1991 TO 7 BILLION MAKING THE US THE BIGGEST FOREIGN INVESTOR IN MALAYSIA THE STUDY BASED ON A SURVEY OF NEARLY 200 COMPANIES ALSO PREDICTED THAT US INVESTMENT WOULD CONTINUE TO EXPAND AT AN AVERAGE RATE OF 18 A YEAR THROUGH 1994 A SEPARATE REPORT BY THE US COMMERCE DEPARTMENT PREDICTS THAT MAJORITYOWNED UNITS OF US COMPANIES WILL SPEND 131 BILLION ON PROPERTY PLANT AND EQUIPMENT IN THE ASIAPACIFIC REGION IN 1993 UP 16 FROM 1992 COMPARED WITH JUST A 2 RISE IN SPENDING IN EUROPE THE TREND MAY GET A FURTHER BOOST AS PRESIDENT CLINTON REVS UP A POLICY DESIGNED TO EXPAND US ECONOMIC TIES TO ASIA BY CALLING LAST MONTH FOR A NEW PACIFIC COMMUNITY AND A MEETING LATER THIS YEAR OF THE LEADERS OF THE 15 MEMBERS OF THE ASIAPACIFIC ECONOMIC COOPERATION FORUM MR CLINTON SIGNALED HIS BELIEF THAT THE US ECONOMY SHOULD BE REAPING MORE BENEFITS FROM ASIA'S RAPID GROWTH EXECUTIVES IN THE REGION SAY THAT ECONOMIC STAGNATION IN EUROPE SLUGGISH SALES AT HOME AND RENEWED ENTHUSIASM FOR CHINA ARE DRAWING MORE US BUSINESSES TO ASIA CHINA ALONE RECEIVED NEARLY SIX TIMES AS MUCH U S INVESTMENT IN 1992 AS IT DID IN 1991 AND THE PACE HAS BEEN JUST AS SWIFT IN THE FIRST HALF OF 1993 INTEREST IN SOUTHEAST ASIA IS ALSO GROWING NATIONAL SEMICONDUCTOR BECAME THE FIRST SILICON VALLEY COMPANY TO SET UP IN PENANG IN THE EARLY 1970S AT THAT TIME THE COMPANY WAS LOOKING TO EXPLOIT THE AREA'S HIGH UNEMPLOYMENT TO REDUCE COSTS IN WHAT WAS THEN THE LABORINTENSIVE TASK OF ASSEMBLING SEMICONDUCTORS SINCE THEN AUTOMATION HAS REPLACED THE NEED FOR LOWWAGE WORKERS WITH A DEMAND FOR SEMISKILLED TECHNICIANS TO MONITOR SEVERAL MACHINES AT A TIME NATIONAL NOW SEEKS LUCRATIVE MARKETS NOT CHEAP LABOR WE'RE HERE BECAUSE THE CUSTOMERS ARE HERE SAYS ARTHUR WOODWARD MANAGING DIRECTOR OF THE PENANG OPERATION MOST OF NATIONAL'S PENANG OUTPUT STILL GOES TO THE US JAPAN AND EUROPE MR WOODWARD SAYS BUT SALES TO ASIA ARE GROWING FAST NATIONAL'S DYNACRAFT UNIT WHICH MAKES FRAMES FOR SEMICONDUCTORS IS INVESTING 17 MILLION TO EXPAND ITS PENANG PLANT OTIS ELEVATOR CO A DIVISION OF UNITED TECHNOLOGIES CORP RECENTLY OPENED A 23 MILLION PLANT IN PENANG TO SERVE THE ASIAN MARKET THE COMPANY ALSO HAS PLANTS IN AUSTRALIA CHINA INDIA JAPAN AND SOUTH KOREA PALIATH MOHANDAS VICE PRESIDENT FOR SOUTHEAST ASIA SAYS THAT IN THE PAST FIVE YEARS THE COMPANY HAS DOUBLED ITS SALES IN THE REGION TO ABOUT 1 BILLION KOMAG INC A US MAKER OF THINFILM DISKS USED IN HIGHPERFORMANCE COMPUTER HARDDISK DRIVES RECENTLY BEGAN PRODUCTION AT A NEW FACTORY IN PENANG THE 220000SQUAREFOOT PLANT EMPLOYS ONLY 456 PEOPLE BUT THE COMPANY EXPECTS TO SPEND MILLIONS OF DOLLARS AS IT ADDS NEW PRODUCTION LINES EVERY SIX TO NINE MONTHS BUT SUCH INVESTMENTS IN TECHNOLOGY AND PLANT EXPANSION OFTEN AREN'T REFLECTED IN OFFICIAL INVESTMENT TALLIES BECAUSE THEY DON'T CONSTITUTE NEW PROJECTS THAT HAS ALLOWED US COMPANIES TO BE OVERSHADOWED BY JAPANESE AND TAIWANESE INVESTORS WHO BEGAN VENTURING ABROAD IN LARGE NUMBERS AFTER THE YEN AND THE TAIWAN DOLLAR RAPIDLY APPRECIATED AGAINST THE US DOLLAR IN THE MID1980S GIVEN THE TREMENDOUS SPEED AND SIZE OF THE INCREASE IN JAPANESE OVERSEAS INVESTMENT SINCE 1986 IT ISN'T SURPRISING THAT US REINVESTMENT HAS RECEIVED RELATIVELY LITTLE ATTENTION BETWEEN 1975 AND 1985 JAPAN'S TOTAL DIRECT FOREIGN INVESTMENT AVERAGED 35 BILLION A YEAR ACCORDING TO THE BANK FOR INTERNATIONAL SETTLEMENTS BETWEEN 1987 AND 1991 THE AVERAGE SOARED TO 35 BILLION A YEAR MUCH OF THAT WENT TO SET UP PLANTS IN SUCH COUNTRIES AS MALAYSIA INDONESIA AND THAILAND SENDING JAPAN'S CUMULATIVE INVESTMENTS IN THE REGION TO 599 BILLION AT THE END OF 1992 FROM 195 BILLION IN 1985 ACCORDING TO JAPAN'S FINANCE MINISTRY THAT EASILY SURPASSES THE 322 BILLION IN CUMULATIVE US INVESTMENT IN THE REG EXCLUDING JAPAN AUSTRALIA AND NEW ZEALAND BUT THE TWO FIGURES AREN'T COMPARABLE BECAUSE THE US COUNTS ACTUAL INVESTMENT AND REINVESTMENT WHILE JAPAN MERELY ADDS UP WHAT ITS COMPANIES SAY THEY PLAN TO INVEST IN A GIVEN YEAR IN 1991 FOR EXAMPLE THE FINANCE MINISTRY REPORTED THAT JAPAN INVESTED A TOTAL OF 416 BILLION OVERSEAS BUT MORE RELIABLE FIGURES BASED ON JAPAN'S BALANCEOFPAYMENTS ACCOUNTS PUT THE TOTAL AT 307 BILLION STILL ADVOCATES OF MORE INVESTMENT IN ASIA COMPLAIN THAT US BUSINESS HASN'T FULLY RECOGNIZED THE REGION'S VAST POTENTIAL OF THE 371 BILLION IN TOTAL CAPITAL OUTFLOWS FROM THE US LAST YEAR 36 WENT TO EUROPE 37 WENT TO LATIN AMERICA AND 11 WENT TO ASIA EXCLUDING JAPAN IT'S OUR STRONG SENSE THAT MANY MORE COMPANIES COULD BE HERE SAYS DOUGLAS HARTWICK WHO RECENTLY FINISHED A TOUR AS THE EMBASSY'S ECONOMIC COUNSELOR IF WE ARE NOT OUT HERE ENGAGED IN THE MARKETPLACE WE ARE GOING TO BE LEFT BEHIND THINGS ARE HAPPENING VERY FAST 9308060151 930806 TECHNOLOGY HALSEY DRUG RESUMES SHIPMENTS NEW YORK HALSEY DRUG CO SAID ITS BROOKLYN PLANT RESUMED SHIPMENT OF TWO OF ITS GENERIC DRUG PRODUCTS AND THE COMPANY EXPECTS TO RESUME SHIPMENT OF THREE OR FOUR MORE DRUGS SHORTLY SHIPMENTS OF NONLIQUID DRUG PRODUCTS MADE AT THE PLANT HAD BEEN SUSPENDED JUNE 25 AS PART OF A CONSENT DECREE WITH THE FOOD AND DRUG ADMINISTRATION THE CONSENT DECREE STEMMED FROM AN FDA INVESTIGATION INTO MANUFACTURING PRACTICES AT THE BROOKLYN PLANT 9308060150 930806 PIER 1 IMPORTS SALES RISE FORT WORTH TEXAS PIER 1 IMPORTS INC SAID SALES FOR THE FOUR WEEKS ENDED SATURDAY INCREASED 74 TO 569 MILLION FROM 529 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR ROSE 47 IN THE PERIOD THE SPECIALTY RETAILER SAID IN THE FIRST SEVEN MONTHS OF 1993 SALES ROSE 61 TO 2823 MILLION FROM 2661 MILLION A YEAR EARLIER SAMESTORE SALES FOR THE YEAR TO DATE WERE UP 3 9308060149 930806 50OFF STORES REPORTS SALES SAN ANTONIO 50OFF STORES INC SAID SAMESTORE SALES FOR THE FIVEWEEK PERIOD ENDED JULY 30 FELL 154 TOTAL SALES FOR THE PERIOD WERE UP 122 TO 156 MILLION FROM 139 MILLION A YEAR EARLIER FOR THE SECOND QUARTER THE DISCOUNT APPAREL RETAILER SAID SALES INCREASED 14 TO 415 MILLION FROM 364 MILLION A YEAR EARLIER SAMESTORE SALES FOR THE QUARTER DROPPED 163 9308060147 930806 REX STORES JULY SALES ROSE 40 DAYTON OHIO REX STORES CORP FORMERLY AUDIO/VIDEO AFFILIATES INC SAID TOTAL JULY SALES INCREASED 40 TO 233 MILLION FROM 167 MILLION A YEAR EARLIER COMPARABLESTORE SALES ROSE 20 TO 194 MILLION FROM 162 MILLION SALES FOR THE SECOND QUARTER ENDED JULY 31 GREW 31 TO 60 MILLION FROM 457 MILLION A YEAR EARLIER WHILE COMPARABLESTORE SALES FOR THE PERIOD ROSE 13 REX WILL REPORT QUARTERLY RESULTS NEXT MONTH REX A SPECIALTY RETAILER OF CONSUMER ELECTRONIC PRODUCTS AND APPLIANCES HAD 109 STORES AT THE END OF LAST MONTH COMPARED WITH 95 STORES A YEAR EARLIER 9308060145 930806 INTERNATIONAL EXPLOSION IN CHINA'S BUSTLING SHENZHEN KILLS 70 DAMAGES ECONOMIC SHOWCASE BY JESSE WONG AND MARCUS W BRAUCHLI STAFF REPORTERS OF THE WALL STREET JOURNAL HONG KONG A WAREHOUSE BLAST AND FIRE SET OFF A MASSIVE NATURAL GAS EXPLOSION IN CHINA'S SHOWCASE SPECIAL ECONOMIC DEVELOPMENT ZONE OF SHENZHEN LEAVING AN ESTIMATED 70 PEOPLE DEAD AND 200 OTHERS INJURED THE EXPLOSIONS WERE FELT THROUGHOUT THE SOUTHERN COASTAL CITY WHICH SHARES A BORDER WITH THE BRITISH COLONY OF HONG KONG FIRE CONTINUED TO RAGE IN THE AFFECTED WAREHOUSE AND INDUSTRIAL DISTRICT MORE THAN 12 HOURS AFTER THE INITIAL EXPLOSION WHICH TOOK PLACE EARLY THURSDAY AFTERNOON LOCAL TIME HONG KONG AUTHORITIES SAID EARLY FRIDAY MORNING THAT THE COLONY WOULD FLY FIREFIGHTERS TO THE SCENE TO ASSIST THEIR SHENZHEN COUNTERPARTS AS OF LATE THURSDAY NIGHT SHENZHEN AUTHORITIES SAID THAT THEY HADN'T YET DETERMINED THE EXACT NUMBER OF CASUALTIES ALTHOUGH THERE WERE INDICATIONS THAT MANY OF THE INJURED WERE TREATED AND RELEASED FROM THE HOSPITAL AS YOU MAY UNDERSTAND THE CONDITIONS AT THE SCENE ARE RATHER DIFFICULT WITH BUILDINGS COLLAPSING SAID HUANG XINHUA AN OFFICIAL SPOKESMAN FOR THE CITY LOUIS BUT A 30YEAROLD CLERK AT SHENZHEN'S CENTURY PLAZA HOTEL SAID HE WAS ASLEEP IN HIS APARTMENT FAR AWAY FROM THE EXPLOSION WHEN IT OCCURRED IT FELT LIKE AN EARTHQUAKE HE SAID CAUSE ISN'T KNOWN THE CAUSE OF THE INITIAL BLAST ISN'T KNOWN OFFICIAL REPORTS SAID THAT IT TOOK PLACE IN A WAREHOUSE CONTAINING NITRIC ACID THESE REPORTS SUGGESTED THAT THE AUTHORITIES MAY HAVE FAILED TO SECURE THE AFFECTED AREA AFTER THE INITIAL BLAST MANY OF THE CASUALTIES RESULTED FROM THE SECOND EXPLOSION WHICH TOOK PLACE AFTER THE WAREHOUSE FIRE SPREAD TO A NEARBY NATURAL GAS RESERVOIR THE CASUALTIES REPORTEDLY INCLUDED FIREFIGHTERS POLICE AND MEDICAL WORKERS AND ONLOOKERS WHO HAD HURRIED TO THE SCENE OF THE FIRST BLAST MANY OTHERS WERE REPORTEDLY INJURED BY FLYING DEBRIS AND SHATTERED GLASS FAR AWAY FROM THE EXPLOSION SITE TAKING PLACE EVEN AS THE NATIONAL ECONOMY IS BESIEGED BY RUNAWAY INFLATION AND WIDESPREAD OFFICIAL CORRUPTION THE DISASTER IN THE SHOWCASE ECONOMIC ZONE REPRESENTS A FURTHER DOSE OF BAD PUBLICITY THAT CHINA CAN ILL AFFORD CURRENTLY A CITY OF ABOUT 25 MILLION SHENZHEN WAS A TINY RURAL COMMUNITY IN 1978 WHEN IT WAS DESIGNATED AS THE SITE FOR CHINA'S FIRST FLIRTATIONS WITH CAPITALISM FOR BETTER OR WORSE IT HAS OCCUPIED A PIVOTAL POSITION IN THE CHINESE ECONOMY'S CONTINUING MOVE AWAY FROM CENTRAL PLANNING EVER SINCE THE SITE OF THE EXPLOSIONS IS A THINLY POPULATED AREA CALLED THE QINGSHUIHE DISTRICT IN NORTHEASTERN SHENZHEN ABOUT 2 1/2 MILES FROM THE HONG KONG BORDER BEIJING'S OFFICIAL XINHUA NEWS AGENCY SAID THAT THE FIRST EXPLOSION RIPPED THROUGH A WAREHOUSE OF THE ANMAO DANGEROUS GOODS SHIPPING & STORGAGE CO AND THAT OVER THE NEXT FOUR HOURS EIGHT OF THE 10 WAREHOUSES IN THE AREA ERUPTED IN FLAMES SOME HONG KONG MEDIA REPORTS SAID THE WAREHOSE IS ASSOCIATED WITH THE CHINESE MILITARY BUT THAT HASN'T BEEN CONFIRMED THE DISASTER GAVE THE BRITISH COLONIAL GOVERNMENT IN HONG KONG WHICH HAS BEEN AT LOGGERHEADS WITH CHINA FOR MUCH OF THE PAST YEAR A CHANCE TO SHOW HOW IT CAN HELP ITS NORTHERN NEIGHBOR HONG KONG WILL REVERT TO CHINESE SOVEREIGNTY ON JUNE 30 1997 AND THE TWO SIDES HAVE BEEN SQUABBLING OVER POLITICAL DIFFERENCES 9308060144 930806 INTERNATIONAL WESTERN GERMANY'S PRICES WIESBADEN GERMANY THE JULY RISE IN WESTERN GERMAN CONSUMER PRICES WAS REVISED TO A FINAL MONTHONMONTH INCREASE OF 02 THE WESTERN REGION'S CONSUMER PRICE INDEX ALSO ROSE A FINAL 43 YEARONYEAR ACCORDING TO THE FEDERAL STATISTICS OFFICE THE MONTHONMONTH RISE WAS HIGHER THAN THE PRELIMINARY FIGURE OF 01 THE FINAL YEARONYEAR AMOUNT WAS UNCHANGED FROM THE PRELIMINARY RESULT THE STATISTICS OFFICE CALLED THE REVISION A SMALL CORRECTION OF THE PRELIMINARY FIGURES WHICH ARE BASED ON INFLATION FIGURES FROM THE FOUR LARGEST OF WESTERN GERMANY'S 11 STATES 9308060143 930806 ECONOMY MANY BUSINESSES TAKE LONGER TO PAY BILLS BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NUMBER OF BUSINESSES TAKING LONGER TO PAY THEIR BILLS HAS GROWN ONCE AGAIN A SIGN THAT MANY COMPANIES ARE SKITTISH ABOUT THE ECONOMIC RECOVERY THE INCREASING TIGHTFISTEDNESS DURING THE THREE MONTHS ENDED JUNE 30 COMES ON THE HEELS OF A WORSENED PERFORMANCE IN THE FIRST QUARTER FOLLOWING FIVE QUARTERS OF STEADY OR IMPROVING PERFORMANCE ACCORDING TO A SURVEY BY DUN & BRADSTREET INFORMATION SERVICES THE SURVEY IS TO BE RELEASED TODAY STILL THERE ARE SIGNIFICANTLY FEWER SLOWERPAYING COMPANIES TODAY THAN IN THE THIRD QUARTER OF 1991 JUST AFTER THE RECESSION ENDED D&B'S QUARTERLY SURVEY IS BASED ON PAYMENT RECORDS OF ONE MILLION COMPANIES AS REPORTED BY THEIR SUPPLIERS TO DUN & BRADSTREET CORP THE SURVEY COMPARES THE LENGTH OF TIME IT TAKES COMPANIES TO PAY THEIR BILLS RELATIVE TO THE YEAREARLIER PERIOD FOR THE THREE MONTHS ENDED JUNE 30 THE SURVEY FOUND THAT THE NUMBER OF COMPANIES TAKING LONGER TO PAY THEIR BILLS EXCEEDED THE NUMBER PAYING MORE PROMPTLY BY 62 IN THE FIRST QUARTER THE NUMBER OF COMPANIES HOARDING CASH LONGER EXCEEDED THE NUMBER OF FASTERPAYING COMPANIES BY 57 IN COMPARISON IN THE THIRD QUARTER OF 1991 104 MORE COMPANIES TOOK LONGER RATHER THAN SHORTER TO PAY SUPPLIERS IT'S A PRETTY SAFE STATEMENT THAT WHEN PEOPLE START TO PAY MORE SLOWLY THE ECONOMY ISN'T DOING WELL SAID FRANK LOURENSO A CHEMICAL BANK EXECUTIVE VICE PRESIDENT IN CHARGE OF THE MIDDLEMARKET BANKING GROUP HE SAYS HE'S RECENTLY HEARD MANY CUSTOMERS LAMENTING ABOUT THE DIFFICULTY OF GETTING PAID IN A TIMELY FASHION HE SAID MANY BUSINESSES HAVE ONLY GUARDED OPTIMISM FOR THE RECOVERY AND ARE WORRIED THAT THE FINAL TAX PACKAGE TO BE APPROVED BY CONGRESS WON'T BE GOOD FOR THE ECONOMY D&B ECONOMIST STEVEN HESS DESCRIBED THE WORSENING PERFORMANCE AS ADDITIONAL EVIDENCE THAT THE ECONOMY IS FALTERING BUT IT'S NOT REASON FOR ALARM PAYMENT IS STILL BETTER THAN IT WAS IN THE RECESSION DAVID KRESGE D&B VICE PRESIDENT SAID SUSTAINED IMPROVEMENTS IN PAYMENT PERFORMANCE WILL REQUIRE STEADY INCREASES IN RETAIL SALES AND NEW FACTORY ORDERS IRWIN KELLNER CHIEF ECONOMIST FOR CHEMICAL BANKING CORP DESCRIBED THE ECONOMY AS PUNK BUT ADDED IT'S NOT THAT COMPANIES DON'T HAVE THE MONEY TO PAY CORPORATIONS SEEM TO FEEL THAT IN TODAY'S SLUGGISH ECONOMY THEY HAVE THE UPPER HAND AND SELLERS OUGHT TO BE GLAD TO BE DOING BUSINESS WITH THEM SO MANY BUSINESSES TELL ME THAT MAKING THE SALE IS NOT THE PROBLEM COLLECTING IS THE PROBLEM AS EVIDENCE THAT THE RECOVERY HOWEVER SLUGGISH REMAINS ON TRACK GOLDMAN SACHS & CO ECONOMIST WILLIAM DUDLEY NOTED THAT MANY COMPANIES DID QUITE WELL IN THE RECENTLY ENDED QUARTER THE INCREASED CASHHOARDING WAS SPREAD BROADLY AMONG COMPANIES OF ALL SIZES AND ACROSS ALL REGIONS BUT ILLINOIS INDIANA MICHIGAN OHIO AND WISCONSIN WHICH SHOWED IMPROVEMENT ACROSS INDUSTRIES ONLY CONSTRUCTION AND MANUFACTURING SHOWED IMPROVEMENT 9308060142 930806 HECHINGER SALES ROSE IN JULY LANDOVER MD HECHINGER CO REPORTED SALES OF 1654 MILLION FOR JULY A 10 INCREASE FROM JULY 1992 SALES OF 1507 MILLION THE HOMEIMPROVEMENTCENTER CHAIN SAID SALES AT STORES OPEN MORE THAN ONE YEAR A KEY MEASURE OF RETAIL SALES STRENGTH ROSE 6 HECHINGER OPERATES 120 STORES UNDER THE HECHINGER AND HOME QUARTERS WAREHOUSE NAMES 9308060141 930806 ROSS STORES SALES UNCHANGED NEWARK CALIF ROSS STORES INC SAID SALES FOR THE FOUR WEEKS ENDED JULY 31 WERE 75 MILLION THE SAME AS THE YEARAGO PERIOD SALES FOR COMPARABLE STORES OPEN AT LEAST A YEAR WERE DOWN 8 9308060140 930806 CORPORATE FOCUS LEGAL BATTLE WEARS ON GUCCI'S IMAGE AND OPERATIONS COMPANY'S PARTNERS WRESTLE FOR CONTROL IN A TRANSATLANTIC SQUABBLE BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL MILAN GUCCI MAY SOON BE AS FAMOUS FOR LAWSUITS AS IT IS FOR LOAFERS MAURIZIO GUCCI SCION OF THE ITALIAN FASHIONGOODS FAMILY AND HIS JOINT VENTURE PARTNER INVESTCORP ARE MIRED IN A TRANSATLANTIC LEGAL BATTLE OVER THE COMPANY INVESTCORP ALLEGES MR GUCCI HAS WASTED MONEY BREACHED CONTRACTS AND FAILED TO RETURN THE COMPANY TO PROFITABILITY MR GUCCI MEANWHILE SAYS INVESTCORP IS MADE UP OF RUTHLESS FINANCIERS WHO ARE LOOKING AT SHORTTERM GAINS RATHER THAN LONGTERM STRATEGY THROUGH MYRIAD COURT ACTIONS IN NEW YORK AND MILAN EACH SIDE IS TRYING TO WREST CONTROL OF THE HOLDING COMPANY GUCCIO GUCCI SPA FROM THE OTHER AS BOTH OWN 50 THE INTENSE SQUABBLE THREATENS TO PARALYZE THE DAYTODAY OPERATIONS OF THE LUXURYGOODS MAKER AND IS THROWING BOTH ITS OWNERSHIP AND FUTURE INTO QUESTION IN A PARTICULARLY INTERNECINE TWIST THE HOLDING COMPANY HAS SUED THE GROUP'S US UNIT ALLEGING NONPAYMENT OF AS MUCH AS 60 MILLION MEANWHILE A GUCCI AMERICA DIRECTOR WHO MR GUCCI RECENTLY KICKED OFF THE UNIT'S BOARD ALSO NOW IS SUING MR GUCCI IN NEW YORK STATE SUPREME COURT ALLEGING NONPAYMENT OF 42 MILLION IN LOANS AND INTEREST SEPARATELY A NEW YORK STATE JUDGE ON MONDAY EXTENDED UNTIL TODAY A RESTRAINING ORDER ORIGINALLY SOUGHT BY INVESTCORP IN LATE JULY THAT FORBIDS THE 45YEAROLD MR GUCCI FROM DOING ANYTHING WITH HIS SHARES BAHRAINBASED INVESTCORP WHICH IS MADE UP OF MORE THAN 100 PROMINENT ARAB MONEY MEN FROM THE PERSIAN GULF HOPES THE FINANCIAL PRESSURE ON MR GUCCI WILL GROW AS A WHITEGLOVED WAITER SERVES COFFEE IN GUCCI'S SUMPTUOUS WOODPANELED HEADQUARTERS IN MILAN MR GUCCI CHIEF EXECUTIVE AND PRESIDENT OF THE HOLDING COMPANY SAYS THAT SUCH A STRUGGLE MAY BE INEVITABLE WHENEVER THERE ISN'T A CLEAR MAJORITY THERE IS A PROBLEM HE SAYS INVESTCORP'S REPRESENTATIVES DECLINED TO BE INTERVIEWED FOR THIS ARTICLE BUT THE INVESTMENT GROUP WHICH SPENT ABOUT 170 MILLION IN 1988 AND 1989 TO BUY ITS STAKE IN GUCCI IN A FILING IN NEW YORK STATE SUPREME COURT ALLEGES THAT MR GUCCI HAS VIOLATED A CRUCIAL 1991 SHAREHOLDER AGREEMENT WITH INVESTCORP BY BEHAVING AS THOUGH HE ALONE WERE IN CONTROL OF THE BUSINESS RUNNING IT IMPROPERLY AND WRONGFULLY PLEDGING HIS OWN SHARES FOR MILLIONS OF DOLLARS OF PERSONAL BANK LOANS WHILE BORROWING 800000 FROM GUCCI AMERICA AND NOT PAYING IT BACK FOR HIS PART MR GUCCI PORTRAYS HIMSELF AS THE HARDPRESSED BUSINESSMAN TRYING TO RATIONALIZE A BLOATED BUSINESS HIS ATTEMPTS HOWEVER COME AFTER YEARS OF UNCERTAINTY LOSSES AND GUCCI FAMILY QUARRELING WORTHY OF A SOAP OPERA UNDER MR GUCCI'S GUIDANCE THE COMPANY HAS CUT BACK ITS PRODUCT LIST DOING AWAY WITH CHEAPER LINES AND GETTING OUT OF CUTLERY AND OTHER BUSINESSES THAT AREN'T CENTRAL TO ITS CLOTHES AND ACCESSORIES OPERATIONS DRASTICALLY REDUCING ITS SALE POINTS GUCCI HAS ALSO CLOSED 665 COUNTERS IN DEPARTMENT STORES OVER THE PAST FOUR YEARS WHILE REDUCING ITS NUMBER OF DUTYFREE AND FRANCHISE OUTLETS LIKE MANY LUXURYGOODS COMPANIES GUCCI HAS TAKEN A BEATING AFTER THE HEADY DAYS OF THE 1980S BUT MR GUCCI'S CRITICS AT INVESTCORP AND IN THE FASHION INDUSTRY CHARGE THAT HE HAS CUT BACK LINES TOO MUCH AND SPENT UNWISELY THE RENTING AND REFURBISHING OF GUCCI'S MILAN HEADQUARTERS HAS BEEN COSTLY AND THE ACQUISITION OF A STILL UNUSED HISTORIC VILLA IN FLORENCE HAVE DRAINED MILLIONS FROM THE COFFERS INVESTCORP WHICH NORMALLY LIKES TO TURN AROUND ITS INVESTMENTS QUICKLY HAS GROWN IMPATIENT WITH MR GUCCI AND HIS EXPLANATIONS FOR THE CONTINUING RED INK AT A RECENT STORMY NEWS CONFERENCE GUCCI ANNOUNCED A CONSOLIDATED NET LOSS OF 247 BILLION LIRE 155 MILLION FOR 1992 COMPARED WITH A 378 BILLION LIRE LOSS A YEAR EARLIER A SPOKESMAN FOR MR GUCCI COUNTERS THAT THE HEADQUARTERS COST 3 MILLION AND REPRESENTS A CENTRALIZATION OF THE COMPANY'S ITALIAN OPERATIONS AS FOR THE VILLA THAT WILL BE A PLACE TO TRAIN CRAFTSMEN I'M AN ENTREPRENEUR INVESTCORP ARE FINANCIAL PEOPLE MR GUCCI SAYS ADDING THAT THIS YEAR HE HAS HAD TO SPEND 70 OF HIS TIME ON THE INVESTCORP FIGHT MR GUCCI ALSO ALLEGES THAT INVESTCORP HAS TRIED TO USE ITS OTHER US INTERESTS TO PRESSURE HIM HE WAVES A LETTER DATED LATE LAST MONTH FROM A PURCHASING AGENT AT SAKS FIFTH AVENUE WHICH IS ALSO CONTROLLED BY INVESTCORP CANCELING AN ORDER WITH GUCCI THAT WAS EXPECTED TO NET THE COMPANY AS MUCH AS 2 MILLION TO 3 MILLION INVESTCORP IN REPLY SAYS IT DOESN'T AS A MATTER OF POLICY INTERFERE WITH THE COMMERCIAL DECISIONS OF COMPANIES IN WHICH IT HOLDS STAKES IN ANSWER TO INVESTCORP'S CHARGE OF BREACH OF CONTRACT MR GUCCI'S LAWYERS CONCEDE IN A COURT FILING THAT 10 OF HIS SHARES IN GUCCI WERE PLEDGED IN 1991 TO SECURE A BANK DEBT BUT ADD THAT THESE DEBTS WERE REPAID IN MAY 1993 LEAVING THE SHARES UNENCUMBERED MR GUCCI IS CERTAINLY NO STRANGER TO FEUDING BEFORE INVESTCORP AGREED TO BUY INTO THE COMPANY GUCCI WAS FOR YEARS RIVEN WITH FAMILY QUARRELS AS MAURIZIO STRUGGLED FOR CONTROL OF THE COMPANY WITH RELATIVES AS IS OFTEN THE CASE WITH FAMILY BUSINESSES GUCCIO GUCCI SPA SEEMS TO HAVE BECOME MORE DIFFICULT TO HOLD TOGETHER AS IT EXPANDED AND PASSED FROM ONE GENERATION TO THE NEXT FOUNDED IN FLORENCE IN 1922 BY MAURIZIO'S GRANDFATHER GUCCIO THE FAMILY COMPANY AT FIRST GREW GRADUALLY WITHIN ITALY AS PROSPERITY RETURNED TO EUROPE AFTER WORLD WAR II GUCCI GREW RAPIDLY OPENING ITS FIRST STORE IN THE US IN 1953 THAT SAME YEAR GUCCIO THE GROUP'S FOUNDER PASSED AWAY LEAVING THE BUSINESS TO HIS THREE SONS ALDO VASCO AND RODOLFO GUCCI CAUGHT THE WAVE OF PROSPERITY THAT SWEPT AMERICA FROM THE 1950S ITS LUXURY ITALIAN LADIES' HANDBAGS BELTS AND SILK SCARVES BECAME SYNONYMOUS WITH EUROPEAN CHIC ONCE THE BUSINESS PASSED TO THE GRANDCHILDREN QUARRELING STARTED IN EARNEST AFTER RODOLFO GUCCI DIED IN 1983 RELATIVES ALLEGED THAT HIS SON MAURIZIO ARRANGED TO HAVE HIS FATHER'S SIGNATURE FORGED IN AN EFFORT TO EVADE AN INHERITANCE TAX IN NOVEMBER 1988 A MILAN COURT CONVICTED MAURIZIO GUCCI OF ATTEMPTED FRAUD FINED HIM AND GAVE HIM A ONEYEAR SUSPENDED JAIL SENTENCE THE FAKE SIGNATURE MAURIZIO NOW SAYS WAS A STORY STARTED BY RELATIVES AFTER MY FATHER'S DEATH A SPOKESMAN FOR MR GUCCI SAYS THAT THE CONVICTION WAS LATER OVERTURNED IN ITALIAN COURTS IN ANOTHER INCIDENT RODOLFO'S BROTHER ALDO AND HIS SON PAOLO ALSO WERE EMBROILED IN LAWSUITS AS THE SON TRIED TO SET UP HIS OWN BUSINESS THERE WERE ALSO PROBLEMS WITH THE US TAX AUTHORITIES THE INTERNAL REVENUE SERVICE IN 1984 ALLEGED THAT GUCCI HAD IMPROPERLY DIVERTED MILLIONS OF DOLLARS TO OVERSEAS FRONT COMPANIES TO EVADE TAX IN JANUARY 1986 ALDO GUCCI PLEADED GUILTY TO THESE FEDERAL TAX FRAUD CHARGES AND PAID 74 MILLION IN BACK TAXES THESE FAMILY QUARRELS CONVINCED THE GUCCIS THAT IT WAS BETTER TO LEAVE JUST ONE FAMILY MEMBER IN CHARGE CONTROL REMAINED DIVIDED THOUGH AS MAURIZIO GUCCI HAD TO SHARE OWNERSHIP WITH INVESTCORP WHICH HAD SCOOPED UP THE OTHER FAMILY SHARES NOW THE COMPANY IS SUFFERING THROUGH THE SAME KIND OF POWER STRUGGLE ONE COOK IS BETTER SAYS MAURIZIO GUCCI IF THERE ARE TOO MANY COOKS IN THE KITCHEN YOU DON'T KNOW WHAT FOOD COMES OUT 9308060139 930806 PROGRAM TRADING NEW YORK PROGRAM TRADING FOR THE WEEK ENDED JULY 30 ACCOUNTED FOR 10 OR AN AVERAGE OF 253 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 27 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 374 INVOLVED STOCKINDEX ARBITRAGE UP FROM 32 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 494 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 426 WAS FOR THEIR CUSTOMERS AN ADDITIONAL 8 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOST ACTIVE FIRMS SALOMON BROTHERS COOPER NEFF AND FIRST BOSTON EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY DID MOST OF ITS PROGRAM TRADING FOR ITS CUSTOMERS NOMURA SECURITIES SPLIT ITS PROGRAM TRADING BETWEEN ITS OWN ACCOUNT AND THOSE OF ITS CUSTOMERS 9308060137 930806 VALUE CITY JULY SALES INCREASED COLUMBUS OHIO VALUE CITY DEPARTMENT STORES INC SAID SALES FOR THE FIVE WEEKS ENDED JULY 31 ROSE 266 TO 658 MILLION FROM 52 MILLION FOR THE FOUR WEEKS ENDED JULY 31 1992 THE OFFPRICE DEPARTMENT STORE CHAIN SAID SAMESTORE SALES DECREASED 09 FOR THE FIVE WEEKS COMPARED WITH THE SAME FIVE WEEKS A YEAR EARLIER SALES FOR THE 53 WEEKS ENDED JULY 31 ROSE TO 8422 MILLION FROM 7982 MILLION FOR THE 52 WEEKS ENDED JULY 31 1992 SAMESTORE SALES FOR THE 53WEEK PERIODS GREW 2 9308060136 930806 TRC AGREES TO REFUND 24 MILLION TO US FOR UNUSED SERVICES WINDSOR CONN TRC COS SAID IT REACHED AN AGREEMENT WITH THE US JUSTICE DEPARTMENT TO REFUND THE FEDERAL GOVERNMENT 24 MILLION FOR LABORATORY SERVICES PROVIDED BY METATRACE INC ITS FORMER ANALYTICAL LABORATORY THAT WERE NEVER USED UNDER TERMS OF THE ACCORD THE JUSTICE DEPARTMENT HAS RELEASED THE ENVIRONMENTAL SERVICES COMPANY FROM ALL PENDING FEDERAL CLAIMS RELATED TO METATRACE LOCATED IN EARTH CITY MO AND HAS TERMINATED AN INVESTIGATION TRC SAID AS A RESULT OF THE SETTLEMENT THE COMPANY SAID IT WILL TAKE A NET CHARGE OF ABOUT 23 MILLION OR ABOUT 38 CENTS A SHARE IN ITS FOURTH QUARTER A SPOKESMAN SAID THE COMPANY WILL POST A LOSS IN THE FOURTH QUARTER AS A RESULT IN THE YEARAGO FOURTH QUARTER THE COMPANY REPORTED NET INCOME OF 990314 OR 17 CENTS A SHARE ON REVENUE OF 162 MILLION THE COMPANY SAID IT WAS IN THE BEST INTEREST OF ALL PARTIES TO SETTLE THE MATTER WHICH HAD BEEN UNDER DISPUTE SINCE 1990 THE COMPANY SAID IT WILL RELEASE ITS FOURTHQUARTER RESULTS NEXT WEEK IN 1990 METATRACE PLEADED GUILTY TO CRIMINAL FRAUD IN A PLEA AGREEMENT WITH US ATTORNEYS FOLLOWING INVESTIGATIONS BY FEDERAL AGENCIES OF THE UNIT'S LABORATORY PROCEDURES 9308060135 930806 VIETNAM'S RICE EXPORTS RISE HANOI VIETNAM RICE EXPORTS DURING THE FIRST SEVEN MONTHS OF THIS YEAR ROSE 36 FROM THE SAME PERIOD LAST YEAR AND THE PROPORTION OF HIGHGRADE RICE HAS SOARED OFFICIAL REPORTS SAID THE VIETNAM NEWS AGENCY SAID MOST OF THIS YEAR'S PRODUCTION TOTALING 900000 TONS WAS EXPORTED TO AFRICA THE MIDDLE EAST AND LATIN AMERICA ALMOST HALF THE AMOUNT CAME FROM THE FERTILE MEKONG RIVER DELTA REGION IN SOUTHERN VIETNAM REFORMS IN THE 1980S THAT GAVE FARMERS INCENTIVES TO PRODUCE HAVE TURNED VIETNAM ONCE CHRONICALLY SHORT OF FOOD INTO THE WORLD'S THIRDLARGEST RICE EXPORTER AFTER THAILAND AND THE US 9308060133 930806 INTERNATIONAL LVMH PLANS STAKE ACQUISITION PARIS LVMH MOET HENNESSY LOUIS VUITTON SA THE FRENCH LUXURY PRODUCTS COMPANY IS BRANCHING INTO PUBLISHING WITH AN AGREEMENT TO ACQUIRE CONTROL OF FRANCE'S DEFOSSES INTERNATIONAL SA FOR 110 MILLION FRANCS 185 MILLION DEFOSSES SAID THAT WHILE A LARGE MAJORITY OF SHAREHOLDERS HAD APPROVED THE SALE THEY WILL MEET AUG 23 TO FINALIZE IT AND WORK OUT DETAILS DEFOSSES SAID THE ACCORD INCLUDES A RESTRUCTURING OF THE PUBLISHING COMPANY'S BANK DEBTS 9308060132 930806 BONTON STORES SALES POSTED YORK PA BONTON STORES INC SAID SALES FOR THE FOUR WEEKS ENDED JULY 31 ROSE 05 TO 19 MILLION FROM 189 MILLION A YEAR EARLIER COMPARABLESTORE SALES OR SALES AT OUTLETS OPEN AT LEAST ONE YEAR FELL 09 THE CLOTHING AND HOMEFURNISHING CHAIN WITH OUTLETS IN PENNSYLVANIA MARYLAND NEW YORK AND WEST VIRGINIA SAID SALES FOR THE FIRST HALF ROSE 19 TO 1367 MILLION FROM 1342 MILLION IN THE 1992 PERIOD COMPARABLESTORE SALES IN THE FIRST HALF FELL 19 9308060131 930806 DELTA AIR'S TRAFFIC FALLS 44 ATLANTA DELTA AIR LINES SAID ITS JULY TRAFFIC FELL 44 FROM A YEAR EARLIER THE DECREASE REFLECTS THE UNUSUALLY HEAVY TRAFFIC LAST YEAR DUE TO HALFPRICE FARE SALES DELTA SAID DELTA FLEW 787 BILLION REVENUE PASSENGER MILES LAST MONTH COMPARED WITH 824 BILLION IN JULY 1992 A REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED DROPPED TO 669 FROM 713 IN THE FIRST SEVEN MONTHS OF THE YEAR TRAFFIC INCREASED 34 TO 471 BILLION REVENUE PASSENGER MILES FROM 455 BILLION LOAD FACTOR ROSE TO 61 FROM 599 9308060130 930806 TODAY'S MAN JULY SALES ROSE 29 MOORESTOWN NJ TODAY'S MAN INC SAID SALES FOR THE FOUR WEEKS ENDED JULY 31 ROSE 29 TO 94 MILLION FROM 73 MILLION A YEAR EARLIER COMPARABLESTORE SALES OR THOSE AT OUTLETS OPEN AT LEAST A YEAR ROSE 9 THE MENSWEAR CHAIN WITH 18 OUTLETS IN THE NORTHEAST SAID SALES FOR THE FIRST HALF OF THE YEAR ROSE 24 TO 702 MILLION FROM 565 MILLION FIRSTHALF COMPARABLESTORE SALES ROSE 38 9308060129 930806 UNILEVER'S NATIONAL STARCH UNIT BRIDGEWATER NJ NATIONAL STARCH & CHEMICAL CO A UNIT OF UNILEVER PLC ACQUIRED AN ADHESIVES AND RESINS COMPANY IN ARGENTINA AND PURCHASED THE MAJORITY STAKE IN A SPECIALTY CHEMICAL COMPANY IN CHILE TERMS WEREN'T DISCLOSED IN A NEWS RELEASE THE UNIT SAID INDUSTRIAS PROMOVI SA BUENOS AIRES IS A LEADING PRODUCER OF LIQUID AND HOTMELT ADHESIVES AND RESIN EMULSIONS FOR THE PACKAGING AND DISPOSABLE DIAPER INDUSTRIES ITS PRODUCTS ARE SOLD EXTENSIVELY IN ARGENTINA WITH SOME EXPORTS IN OTHER SOUTHAMERICAN COUNTRIES THE UNIT ALSO ACQUIRED 60 OF THE SHARES OF POLIQUIMICA CHILE SA SANTIAGO A MANUFACTURER OF RESIN EMULSIONS AND LIQUIDEMULSION ADHESIVES THE COMPANY SELLS ITS PRODUCTS PRIMARILY TO CHILE'S PAINT PACKAGING AND TEXTILE INDUSTRIES 9308060128 930806 CONSOLIDATED STORES' SALES RISE COLUMBUS OHIO CONSOLIDATED STORES CORP SAID SALES FOR THE FIVE WEEKS ENDED JULY 31 INCREASED 139 TO 86 MILLION FROM 755 MILLION A YEAR EARLIER THE CHAIN OF 572 SPECIALTY RETAIL CLOSEOUT STORES SAID THAT FOR ITS SECOND QUARTER ENDED JULY 31 IT EXPECTS TO REPORT RECORD SECONDPERIOD EARNINGS THAT WILL BE WITHIN THE UPPER RANGE OF ANALYSTS' EXPECTATIONS A YEAR EARLIER CONSOLIDATED HAD NET OF 51 MILLION OR 11 CENTS A SHARE ON SALES OF 2032 MILLION FOR THE CURRENT QUARTER ANALYSTS ESTIMATE NET INCOME WILL BE AS HIGH AS 14 CENTS A SHARE 9308060127 930806 MATSUSHITA ELECTRIC'S CHINA PLANS TOKYO JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL CO SAID IT WILL PARTICIPATE IN A JOINT VENTURE TO PRODUCE AND MARKET NOMERCURYADDED MANGANESE DRYCELL BATTERIES IN CHINA MATSUSHITA AND ITS SUBSIDIARY MATSUSHITA BATTERY INDUSTRIAL CO WILL JOIN SHANGHAI BATTERY FACTORY OF CHINA IN ESTABLISHING SHANGHAI MATSUSHITA BATTERY CO IN EARLY SEPTEMBER BATTERY PRODUCTION WILL BEGIN IN JANUARY 1995 WITH PRELIMINARY FORECASTS FOR 100 MILLION UNITS IN THE FIRST YEAR OF PRODUCTION A MATSUSHITA SPOKESWOMAN SAID SOME OF THE UNITS MAY BE EXPORTED IN THE FUTURE BUT FOR NOW THE COMPANY WILL CONCENTRATE ON THE CHINESE MARKET THE PARTNERS ESTIMATE THAT CHINA'S MARKET FOR DRYCELL BATTERIES AMOUNTS TO AN ANNUAL FOUR BILLION UNITS MATSUSHITA WILL PROVIDE 60 OF THE INITIAL 18 BILLION YEN 3147 MILLION CAPITAL INVESTMENT WHILE SHANGHAI BATTERY FACTORY WILL SUPPLY THE REMAINDER THE SPOKESWOMAN SAID 9308060126 930806 HOCHTIEF GROUP VOLUME UP ESSEN GERMANY HOCHTIEF AG ONE OF GERMANY'S LARGEST CONSTRUCTION COMPANIES SAID SIXMONTH GROUP CONSTRUCTION VOLUME ROSE 42 TO 371 BILLION MARKS 217 BILLION WHILE ORDERS DECLINED 29 TO 416 BILLION MARKS ORDER BACKLOG ROSE 12 TO 74 BILLION MARKS THE COMPANY SAID DOMESTIC CONSTRUCTION VOLUME ROSE 59 IN THE FIRST SIX MONTHS TO 267 BILLION MARKS FOREIGN CONSTRUCTION VOLUME EDGED UP 01 FROM A YEAR EARLIER TO 104 BILLION MARKS 9308060125 930806 TECHNOLOGY & HEALTH INTEL AND CYRIX SETTLE LONG LEGAL DISPUTE SANTA CLARA CALIF INTEL CORP AND CYRIX CORP SAID THEY SETTLED THEIR LONGRUNNING SERIES OF LEGAL DISPUTES AGREEING TO DROP MOST OF THE COURT CLAIMS OF EACH COMPANY INTEL A 6 BILLION COMPUTERCHIP MAKER AND TINY COMPETITOR CYRIX BASED IN RICHARDSON TEXAS HAVE BEEN SQUABBLING SINCE 1990 OVER PATENT INFRINGEMENT CLAIMS CYRIX WHICH WAS FORMED IN 1988 AND WHICH RECENTLY WENT PUBLIC MAKES MICROPROCESSORS SIMILAR TO INTEL'S WHICH ARE THE BRAINS OF MANY OF THE MOSTPOPULAR PERSONAL COMPUTERS YESTERDAY'S SETTLEMENT ANNOUNCED JOINTLY BY THE TWO COMPANIES ESSENTIALLY DISMISSES THREE LAWSUITS AND SETS TERMS FOR RESOLVING A FOURTH AFTER A PENDING APPEAL IS DECIDED THE SUITS TO BE DROPPED INCLUDE TWO ANTITRUST CLAIMS FILED BY CYRIX AGAINST INTEL IN 1991 IN FEDERAL AND STATE COURTS IN TEXAS IN RETURN INTEL DROPPED A FEDERAL PATENT INFRINGEMENT CLAIM AGAINST CYRIX THE REMAINING CASE INVOLVES PRODUCTS CYRIX BOUGHT FROM A TEXAS SUPPLIER THAT HELD AN INTEL LICENSING AGREEMENT INTEL LOST ITS ARGUMENT IN FEDERAL COURT IN TEXAS LAST JULY THAT THE AGREEMENT DIDN'T APPLY TO CYRIX THE COMPANIES AGREED THAT IF THE PENDING APPEAL IS DECIDED IN FAVOR OF CYRIX INTEL WILL PAY THE TEXAS COMPANY 500000 IF CYRIX LOSES IT WILL PAY INTEL 2 MILLION IN EITHER SITUATION THE COMPANIES AGREED THAT CYRIX MAY CONTINUE TO USE THE CHIPS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY CYRIX CLOSED AT 2825 UP 2875 OR 11 INTEL CLOSED AT 5575 UP 275 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AN ARTICLE FRIDAY ON THE SETTLEMENT OF LEGAL DISPUTES BETWEEN INTEL CORP AND CYRIX CORP CONCERNED ONLY CASES INVOLVING A COMPUTER CHIP KNOWN AS A MATH COPROCESSOR THE SETTLEMENTS DON'T AFFECT OTHER LITIGATION BETWEEN THE COMPANIES INVOLVING A MICROPROCESSOR KNOWN AS THE 486SLC 9308060123 930806 ECONOMY US FACTORY ORDERS ROSE 26 IN JUNE WEAKNESS IS STILL SEEN IN MANUFACTURING BY ELIOT MORGAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ORDERS TO US FACTORIES INCREASED IN JUNE FOR THE FIRST TIME IN FOUR MONTHS BUT ANALYSTS ARE STILL WARY ABOUT THE MANUFACTURING SECTOR'S HEALTH THE COMMERCE DEPARTMENT SAID NEW ORDERS JUMPED 26 TO 25477 BILLION IN JUNE THE BIGGEST RISE OF THE YEAR BUT THE INCREASE WAS CONCENTRATED IN AIRCRAFT A CATEGORY THAT TENDS TO SWING WILDLY FROM MONTH TO MONTH THIS IS A BOUNCE BACK IN A FAIRLY VOLATILE SECTOR WHILE THAT IS ENCOURAGING IT WOULD CERTAINLY BE NICE TO SEE A MORE BROADLY BASED REBOUND SAID JOHN GODFREY CHIEF ECONOMIST OF BARNETT BANKS INC IN JACKSONVILLE FLA THE MANUFACTURING SECTOR HAS BEEN ON A ROCKY ROAD SINCE THE START OF THE YEAR WITH EMPLOYMENT CUTBACKS AND SLOWDOWNS IN PRODUCTION AND NEW ORDERS ANALYSTS SAID JUNE'S BIG INCREASE IN FACTORY ORDERS DIDN'T CHANGE THE PICTURE OF A WEAK INDUSTRIAL SECTOR ASIDE FROM TRANSPORTATION ONLY ORDERS FOR ELECTRONIC EQUIPMENT IMPROVED AMONG DURABLE GOODS THOSE INTENDED TO LAST MORE THAN THREE YEARS ORDERS FOR STONE CLAY AND GLASS PRODUCTS AND INDUSTRIAL MACHINERY AND EQUIPMENT DECLINED IN THE NONDURABLE GOODS SECTOR ORDERS FOR CHEMICALS ALLIED PRODUCTS AND FOOD INCREASED THE LARGEST DROPS WERE IN ORDERS FOR PAPER PRODUCTS PETROLEUM AND COAL SOME ANALYSTS SAID THE AUTOMOBILE SECTOR IS THE BRIGHTEST SPOT IN THE MANUFACTURING PICTURE ORDERS FOR MOTOR VEHICLES AND PARTS JUMPED 46 IN JUNE SUGGESTING INCREASED PRODUCTION AND POSSIBLY EMPLOYMENT AUTO MANUFACTURERS HAVE SAID THEY WILL HAVE THEIR ASSEMBLY LINES HUMMING SAID JAMES SMITH PROFESSOR OF FINANCE AT THE UNIVERSITY OF NORTH CAROLINA A BETTER AUTO SECTOR WILL BOOST THE MANUFACTURING SECTOR BACK TO POSITIVE TERRITORY A TROUBLE SPOT IN THE FACTORYORDER REPORT WAS THE FOURTH CONSECUTIVE DROP IN UNFILLED ORDERS THAT SUGGESTS MANUFACTURERS WILL NOT ADD SIGNIFICANTLY TO EMPLOYMENT BECAUSE THEY ARE MEETING DEMAND WITH THEIR CURRENT WORK FORCE SEPARATELY THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS FELL 60000 IN THE WEEK ENDED JULY 31 TO 336000 FROM A REVISED 396000 THE PREVIOUS WEEK IT WAS THE LARGEST DROP SINCE AUGUST OF LAST YEAR AND STEMMED MAINLY FROM THE END OF LAYOFFS IN THE AUTO INDUSTRY ECONOMISTS SAY THERE COULD BE A PICKUP IN AUTOMOBILE PRODUCTION PRIOR TO LABOR NEGOTIATIONS AND A POTENTIAL STRIKE THIS FALL THE LABOR DEPARTMENT SAID PART OF THE BIG DROP ALSO COMES IN PART FROM FLOODING IN THE MIDWEST BUT ESTIMATES OF THE FLOOD'S IMPACT AREN'T YET AVAILABLE THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH ANALYSTS SAY IS A BETTER MARKER OF LABORMARKET CONDITIONS WAS 353000 UP FROM 352250 IN THE PREVIOUS WEEK ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES FOR MANUFACTURERS IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9308060122 930806 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN CHINA SET UP TWO SPECIAL COURTS TO HANDLE LEGAL DISPUTES INVOLVING INTELLECTUAL PROPERTY RIGHTS IN A BID TO AID DEVELOPMENT OF SCIENCE TECHNOLOGY AND TRADE THE BEIJING INTERMEDIATE PEOPLE'S COURT INTELLECTUAL PROPERTY RIGHTS TRIBUNAL WILL HEAR MOST OF THE DISPUTES APPEALS WILL BE HANDLED BY A TRIBUNAL ATTACHED TO THE BEIJING HIGH PEOPLE'S COURT THE MOVE IS THE LATEST AMONG CHINA'S EFFORTS TO COMBAT RAMPANT PIRACY OF COMPUTER SOFTWARE MUSICAL RECORDINGS TRADEMARKS AND DESIGNS THE ILLEGAL TRADE HAS CAUSED SOME FOREIGN COMPANIES TO SHUN THE CHINESE MARKET IN THE PAST YEAR CHINA HAS JOINED SEVERAL INTERNATIONAL COPYRIGHT CONVENTIONS AND TIGHTENED LAWS TO PROTECT COPYRIGHTS TRADEMARKS AND PATENTS MOLDOVA'S PARLIAMENT REJECTED MEMBERSHIP IN THE COMMONWEALTH OF INDEPENDENT STATES THE VOTE ON THE DECEMBER 1991 TREATY WAS 16222 FOUR VOTES SHY OF THE TWOTHIRDS MAJORITY NEEDED FOR RATIFICATION A 91MEMBER NATIONALIST FACTION BOYCOTTED THE VOTE PRESIDENT MIRCEA SNEGUR DIDN'T LOBBY FOR THE TREATY SIGNED WHEN THE CIS SEEMED TO HAVE BETTER PROSPECTS PROPONENTS ARGUED THAT MOLDOVA STILL IS ECONOMICALLY DEPENDENT ON RUSSIA WHICH DOMINATES THE CIS AZERBAIJAN HAS LEFT THE GROUP WHICH HAS NINE OF THE 15 FORMER SOVIET REPUBLICS GEORGIA AND THE BALTIC STATES ALSO HAVE REJECTED MEMBERSHIP MALAYSIA THE WORLD'S LARGEST EXPORTER OF TROPICAL HARDWOOD PASSED LEGISLATION THAT ALLOWS THE ARMED FORCES TO HUNT DOWN OUTLAW LOGGERS WHO MAY BE JAILED FOR AT LEAST ONE YEAR AND AS LONG AS 20 YEARS THE MAXIMUM PENALTY HAD BEEN THREE YEARS IN JAIL AND A 4000 FINE WHICH WAS INCREASED TO 195000 THOSE CONVICTED OF ILLEGAL LOGGING ALSO MAY BE ORDERED TO COMPENSATE THE STATE THE ARMED FORCES MAY SEIZE FOREST PRODUCTS AND STOP AND SEARCH VEHICLES WITH OR WITHOUT A WARRANT MALAYSIA'S TROPICAL HARDWOOD TRADE WAS VALUED AT 36 BILLION IN 1991 INDONESIA MAY RESTRICT BANK CREDIT ONLY TO VENTURES THAT WON'T DAMAGE NATURAL RESOURCES THE COUNTRY WHICH HAS SOME OF THE WORLD'S LARGEST RAIN FORESTS HAS LONG BEEN ACCUSED OF IGNORING ENVIRONMENTAL ISSUES IN ITS RUSH FOR ECONOMIC GROWTH IN LOGGING HARVESTING OUTPACES REPLENISHMENT LAWS PROTECTING NATURAL RESOURCES ARE RARELY ENFORCED SO THE ENVIRONMENT MINISTRY PROPOSED THE GREEN LENDING LINK UNDER A POLICY STILL BEING DEVELOPED LOAN APPLICANTS MAY HAVE TO PROVE THEIR PROJECTS' ENVIRONMENTAL SOUNDNESS TO BANKS ECONOMIC CRIMES ARE PROLIFERATING IN CHINA PARTICULARLY SMUGGLING COUNTERFEITING AND FRAUD THE XINHUA NEWS AGENCY SAID AUTHORITIES SOLVED MORE THAN 21000 SUCH CASES IN THE FIRST HALF AND RECOVERED ABOUT 175 MILLION THE GOVERNMENT DIDN'T DISCLOSE DETAILED DATA IN JUNE CHINA BEGAN A CRACKDOWN ON OFFICIAL CORRUPTION AND ECONOMIC CRIMES AND AS MOST OF THE RESULTING CASES HAVEN'T BEEN RESOLVED STATISTICS ON THEM WEREN'T INCLUDED IN THE FIRSTHALF REPORT BOLIVIA'S NEW PRESIDENT GONZALO SANCHEZ DE LOZADA PLANS RADICAL ECONOMIC CHANGES SUCH AS CAPITALIZING STATE FIRMS WITH FOREIGN INVESTMENT AND GIVING EACH OF THE 24 MILLION VOTINGAGE CITIZENS SHARES VALUED AT AS MUCH AS 1500 FOREIGNERS MAY MANAGE SOME STATE COMPANIES WHERE MR SANCHEZ SAYS OFFICIALS ARE CORRUPT A KEYSTONE OF THE 63YEAROLD MINING EXECUTIVE'S PLAN IS POPULAR PARTICIPATION IN RURAL AND URBAN DEVELOPMENT AND IMPROVEMENT OF HEALTH AND EDUCATIONAL SERVICES MORE THAN HALF THE 63 MILLION POPULATION DOESN'T HAVE DRINKING WATER AND SEWERS THE MINIMUM MONTHLY WAGE IS 40 IN BOLIVIA SOUTH AMERICA'S POOREST COUNTRY THE VALUE OF SOUTH KOREA'S FIRSTHALF IMPORTS OF STRATEGIC ITEMS REGULATED BY A MULTILATERAL GROUP JUMPED TO 117 BILLION FROM 5081 MILLION A YEAR EARLIER THOUGH SOUTH KOREA ISN'T A MEMBER OF THE GROUP THE COORDINATING COMMITTEE FOR MULTILATERAL EXPORT CONTROLS IT SIGNED AN EXPORT ACCORD ON STRATEGIC COMMODITIES AND TECHNICAL DATA WITH THE US IN 1987 IN A BID TO COOPERATE WITH COCOM CREATED TO REGULATE EXPORTS OF SENSITIVE GOODS TO COUNTRIES THAT ONCE FORMED THE EAST BLOC MOST OF THE KOREAN IMPORTS CAME FROM JAPAN UP 65 TO 5952 MILLION AND FROM THE US UP 393 TO 5624 MILLION THE ITEMS WERE MOSTLY ELECTRONIC GOODS INCLUDING COMMUNICATIONS EQUIPMENT COMPUTERS AND SEMICONDUCTORS WITH 423 ORDERS TOTALING 6206 MILLION AND MACHINERY WITH 519 VALUED AT 4986 MILLION SEPARATELY A KOREAN GOVERNMENT STUDY FOUND THAT MOTORVEHICLE TRAFFIC GRIDLOCK COST 6 BILLION IN LOST PRODUCTION TIME ROAD DAMAGE AND EXTRA GASOLINE USED IN 1991 AND THAT COST HAS RISEN AS THE NUMBER OF CARS ON KOREAN ROADS HAS INCREASED 20 ANNUALLY THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT WILL LEND 1743 MILLION TO RUSSIA'S PURNEFTEGAZ OIL AND GAS FIRM FOR MODERNIZATION TO TRIPLE OUTPUT TO 15000 BARRELS A DAY THE COMPANY IS IN SIBERIA'S TYUMEN REGION RUSSIA WAS OVERTAKEN BY SAUDI ARABIA LAST YEAR AS THE WORLD'S TOP PRODUCER BECAUSE OF ITS OUTMODED GEAR AND ECONOMIC CHAOS TAIWAN WILL PROPOSE REVIVING AND ENCOURAGING PRIVATE INVESTMENT IN A 17 BILLION HIGHSPEED RAIL SYSTEM FOR WHICH PARLIAMENT LAST MONTH KILLED STARTUP CASH 9308060121 930806 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 2 15/16 LOW 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 311 30 TO 59 DAYS 314 60 TO 89 DAYS 316 90 TO 119 DAYS 318 120 TO 153 DAYS 332 154 TO 229 DAYS 340 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 316 30 DAYS 320 60 DAYS 322 90 DAYS CERTIFICATES OF DEPOSIT 260 ONE MONTH 266 TWO MONTHS 270 THREE MONTHS 288 SIX MONTHS 317 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 306 ONE MONTH 312 THREE MONTHS 332 SIX MONTHS BANKERS ACCEPTANCES 310 30 DAYS 311 60 DAYS 313 90 DAYS 315 120 DAYS 327 150 DAYS 330 180 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 5/16 3 3/16 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 5/16 THREE MONTHS 3 1/2 SIX MONTHS 3 13/16 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 667 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 2 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 310 13 WEEKS 325 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 699 60 DAYS 706 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 698 60 DAYS 708 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 515 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9308060120 930806 CORRECTIONS & AMPLIFICATIONS SEN LARRY CRAIG IS A REPUBLICAN A PAGEONE ARTICLE YESTERDAY INCORRECTLY STATED HE WAS A DEMOCRAT THE ARTICLE ALSO INCORRECTLY SAID SEN MALCOLM WALLOP IS FROM MONTANA HE IS FROM WYOMING QUADREX CORP IS EVALUATING AN OFFER FOR AN INVESTMENT IN ITS BIOENERGY UNIT YESTERDAY'S OTC FOCUS COLUMN INCORRECTLY REPORTED THAT THE COMPANY WAS CONSIDERING THE SALE OF THE UNIT 9308060119 930806 LETTERS TO THE EDITOR ENVIRONMENTALISM IS GOOD BUSINESS GEORGE MELLOAN'S JULY 12 GLOBAL VIEW COLUMN EXCORIATING ENVIRONMENTALISTS GENERALLY AND AL GORE SPECIFICALLY IS A GOOD EXAMPLE OF THE OSSIFIED REASONING THAT HAS CHARACTERIZED THE BUSINESS AS USUAL CROWD FOR SOME TIME ENVIRONMENTAL REGULATION ACCORDING TO THEIR STANDARD RHETORIC REPRESENTS A COST TO SOCIETY WITH NO APPRECIABLE BENEFIT IN REALITY MANAGING THE ENVIRONMENT LIKE MANAGING ALMOST ANYTHING INVOLVES COSTBENEFIT DECISIONS THE EXAMPLE OF AUTOMOBILE EMISSIONS CLEARLY ILLUSTRATES THIS FACT COUNTRIES THAT HAVE IMPLEMENTED EMISSIONS CONTROLS HAVE DONE SO AT CONSIDERABLE COST BUT AS A QUICK TRIP TO MEXICO CITY OR BANGKOK WILL DEMONSTRATE THOSE COSTS HAVE PURCHASED SUBSTANTIAL BENEFITS BOTH IN HEALTH AND IN QUALITY OF LIFE THE AVERAGE THAIS OR MEXICANS IN ADDITION BEAR THE COSTS OF A LACK OF POLLUTION CONTROL BY DRIVING ONLY ON ALTERNATE DAYS OR NOT WORKING AT ALL WHEN THEIR FACTORIES ARE SHUT DOWN BY POLLUTION ALERTS MESSRS GORE AND CLINTON WERE ELECTED BY A MAJORITY OF VOTERS IN PART BECAUSE OF THEIR PERCEIVED WILLINGNESS TO APPLY COMMON SENSE TO OUR COUNTRY'S PROBLEMS NOT THE RIGID DOGMA OF THE LAISSEZ FAIRE SCHOOL IN THE CASE OF POLLUTION CONTROL THEY RECOGNIZE THAT CAREFULLY CONSIDERED COSTS TO BUSINESS REAP BENEFITS TO SOCIETY THAT FAR OUTWEIGH SHORTTERM PROFIT CONSIDERATIONS ONLY WHEN THE RHETORIC DIES DOWN CAN THIS COMMON SENSE APPROACH BE ALLOWED TO LEAD US TO SOUND ENVIRONMENTAL POLICY WHILE MR MELLOAN'S COLUMN RAISES VALID POINTS HIS INFLAMMATORY RHETORIC CONTRIBUTES LESS TO AN INFORMED DIALOGUE THAN TO THE PERPETRATION OF CLICHE IMAGERY TO SAY THAT ENVIRORADICALS HAVE PERPETRATED A SERIES OF EXPENSIVE HOAXES MAY BE TRUE BUT THE SAME CAN BE SAID FOR GOVERNMENT BUSINESS AND INDUSTRY MORE IMPORTANT IS IT NOT THE PUBLIC THAT HAS AWARDED INCREASED POLITICAL POWER TO ENVIRONMENTAL ORGANIZATIONS AND WAS IT NOT THE PUBLIC THAT ELECTED AL GORE SHOULD WE NOT ASK WHY BEFORE WE DESCRIBE THIS AS THE IRRATIONAL RESULT OF ECOSCARES AS A PUBLIC OPINION RESEARCHER I'VE OBSERVED THAT THE PUBLIC IS INTERESTED NEITHER IN NAMECALLING NOR EXTREMISM PEOPLE WANT THE BENEFITS OF BOTH MODERN SOCIETY AND ENVIRONMENTAL PROTECTION AND THEY WANT TO HEAR FROM PEOPLE WHO CAN OFFER PRACTICAL HUMANE SOLUTIONS TO THEIR CONCERNS IF VICE PRESIDENT GORE AND THE ENVIRONMENTAL COMMUNITY ARE ABLE TO MAKE THEIR CASE WITH THE PUBLIC SHOULD THEY BE BLAMED FOR THE RESULTING POLICY ANY MORE THAN THOSE WHO WERE UNABLE TO COMMUNICATE THEIR CASE IS IT NOT THIS OUTDATED STRATEGY OF ASKING THE PUBLIC TO CHOOSE BETWEEN POLAR EXTREMES THAT LEADS TO UNSATISFACTORY DECISIONMAKING WE LIVE IN AN AGE IN WHICH THE MARKET FRAGMENTS SERIOUS ISSUES INTO DRAMA DRIVEN BY IMAGE AND SYMBOLISM IT IS IN OUR NATION'S INTEREST TO INVENT WAYS IN WHICH THE PUBLIC CAN PARTICIPATE IN INFORMED DECISIONMAKING THE ALTERNATIVE IS TO CONTINUE TO WASTE OUR NATION'S ABUNDANT SUPPLY OF INTELLECT AND ENERGY WAGING DUALIST BATTLES IF THE 20TH CENTURY HAS DEMONSTRATED ANYTHING IT IS THAT IDEOLOGY DIVIDES POTENTIAL ALLIES IT'S TIME TO TEAR DOWN THE OUTDATED WALLS OF IDEOLOGY AND BUILD A FUTURE TOGETHER AL GORE'S BELIEF IN CERTAIN ENVIRONMENTAL MYTHS AS EXPLAINED IN MR MELLOAN'S COLUMN AL GORE'S SEVEN SEALS AND WHAT THEY COST HIGHLIGHTS A COMMON HUMAN CHARACTERISTIC WE BELIEVE WHAT WE WANT TO BELIEVE REGARDLESS OF THE FACTS TOO BAD THE VICE PRESIDENT AND OTHERS IN WASHINGTON AREN'T SMARTER 9308060118 930806 ECONOMY RETAILERS POST MIXED RESULTS FOR JULY SALES CONSUMERS WERE SELECTIVE BUT DISCOUNTS PAID OFF HOME GOODS DID WELL BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL THE NATION'S LARGEST RETAILERS REPORTED A MIXED BAG OF SALES RESULTS FOR JULY AS CONSUMERS CONTINUED TO SPEND SELECTIVELY CHAINS THAT DISCOUNTED HEAVILY GENERALLY OUTPERFORMED OTHERS IN ATTRACTING RELUCTANT SHOPPERS HOME GOODS SOLD BETTER THAN APPAREL SALES AT STORES OPEN AT LEAST A YEAR ROSE AN AVERAGE 56 FROM LAST JULY BASED ON SALOMON BROTHERS INC'S WEIGHTED INDEX OF SEVERAL RETAILERS HOWEVER WALL STREET ANALYSTS STRESSED THAT JULY ISN'T A SIGNIFICANT MONTH FOR EITHER SALES OR PROFITS BECAUSE IT IS WHEN RETAILERS MARK DOWN SUMMER GOODS TO MAKE WAY FOR BACKTOSCHOOL MERCHANDISE JULY HAS NO BEARING ON THE FALL AND EVEN LESS ON THE CHRISTMAS SEASON SAID CJ LAWRENCE ANALYST JEFFREY EDELMAN MOREOVER RETAILERS WITH STRONG SALES OFTEN CLINCH THE GAINS WITH BIG DISCOUNTS WHILE THOSE WITH TIGHTER INVENTORIES TEND TO HAVE LESSSTELLAR SALES NUMBERS ANALYSTS ADDED A FEW OF THE BIGGEST RETAILERS REPORTED BETTERTHANEXPECTED SALES PROMPTING SOME ANALYSTS TO LOOK A BIT MORE OPTIMISTICALLY TOWARD THE CRITICAL SECOND HALF SEARS ROEBUCK & CO SURPRISED ANALYSTS WITH A 154 GAIN IN SAMESTORE SALES COMPARED WITH WEAK RESULTS A YEAR AGO SAMESTORE SALES ROSE 9 AT WALMART STORES INC AND 6 AT MAY DEPARTMENT STORES CO THE EARLY READ IS SOMEWHAT ENCOURAGING SAID KIMBERLY WALIN AN ANALYST WITH LEHMAN BROTHERS ANALYSTS CONSIDER SAMESTORE SALES A MORE ACCURATE BAROMETER OF RETAIL PERFORMANCE THAN TOTAL SALES CALIFORNIA CONTINUED TO LAG THE REST OF THE COUNTRY AS INDICATED BY RETAILERS WITH A LOT OF EXPOSURE THERE DAYTON HUDSON CORP FOR EXAMPLE REPORTED FLAT SAMESTORE SALES MASSIVE FLOODING IN THE MIDWEST DIDN'T SKEW RESULTS BECAUSE THE BIG RETAILERS DON'T HAVE ENOUGH STORES THERE SAID DANIEL BARRY A MERRILL LYNCH ANALYST IN FACT SEARS SAID DEMAND FOR PRODUCT REPAIRS AND SERVICES GREW AS A RESULT OF THE FLOOD RETAILERS SELLING FURNITURE APPLIANCES AND OTHER HOUSEHOLD GOODS FARED THE BEST PARTLY BECAUSE CONSUMERS ARE STILL TAKING ADVANTAGE OF LOW INTEREST RATES TO BUY HOMES OR FIX THEM UP SAMESTORE SALES CLIMBED 22 AT FURNITURE COMPANY BOMBAY CO 11 AT BED BATH & BEYOND INC AND 26 AT BEST BUY CO AN ELECTRONICS AND APPLIANCE CONCERN KMART CORP POSTED A 65 COMPARABLESTORE SALES GAIN MOSTLY BECAUSE OF STRENGTH IN SUCH GOODS AS SMALL APPLIANCES MEANWHILE CONSUMERS STAYED AWAY FROM CLOTHING ANALYSTS SAID ALSO THEY SAID THERE WEREN'T ENOUGH NEW FASHIONABLE STYLES TO TEMPT SHOPPERS INTO THE STORES SPECIALTY APPAREL STORES WERE AMONG THE HARDEST HIT AS SAMESTORE SALES FELL 2 AT GAP INC 6 AT CHARMING SHOPPES INC AND 10 AT MERRYGOROUND ENTERPRISES INC BUT SOME OF THE WEAKER NUMBERS REPORTED BY RETAILERS WERE DECEIVING FEDERATED DEPARTMENT STORES INC AND JC PENNEY INC TWO OF THE BETTER PERFORMERS THIS YEAR POSTED SAMESTORE SALES THAT WERE FLAT AND DOWN 31 RESPECTIVELY MOSTLY BECAUSE THEIR INVENTORIES WERE LEAN AND THEY DIDN'T HAVE TO PULL IN SHOPPERS WITH BIG MARKDOWNS AS A RESULT ANALYSTS SAID SECONDQUARTER PROFITS SHOULD BENEFIT AT THE SAME TIME LIMITED INC REPORTED AN 8 SAMESTORE SALES GAIN BECAUSE IT ATTRACTED SHOPPERS BY DISCOUNTING SLOWMOVING SUMMER CLOTHES LAST YEAR THE APPAREL RETAILER REPORTED A 6 DECLINE IN JULY'S SAMESTORE SALES ANALYSTS ARE FORECASTING PROFIT DECLINES FOR THE SECOND QUARTER ENDED JULY 31 FOR MANY RETAILERS THAT'S BECAUSE MANY RESORTED TO MARKDOWNS AND BECAUSE CONSUMER CONFIDENCE REMAINS SLUGGISH BUT MR EDELMAN OF CJ LAWRENCE SAID THAT WITH AVERAGE INCOME AND EMPLOYMENT FIGURES MOVING UP SLOWLY MAYBE WE'LL GET BACK TO SOME NORMAL SPENDING PATTERNS IN THE SECOND HALF OF THE YEAR 9308060117 930806 LEISURE & ARTS THEATER AKALAITIS'S NEW APPROACH TO A '50S PLAY BY EDWIN WILSON NEW YORK JANE BOWLES THE AUTHOR OF IN THE SUMMER HOUSE LED A LIFE FAR MORE DRAMATIC THAN ANY PLAY SHE COULD HAVE WRITTEN BORN INTO A WELLTODO FAMILY SHE BECAME THE ULTIMATE BOHEMIAN AT ONE POINT SHE AND HER HUSBAND PAUL BOWLES SHARED A HOUSE IN BROOKLYN HEIGHTS WITH WH AUDEN BENJAMIN BRITTEN AND OLIVER SMITH AMONG OTHERS LATER THEY LIVED MOSTLY IN PARIS AND TANGIER MAJOR FIGURES IN THE EXPATRIATE CIRCLES THAT INCLUDED TENNESSEE WILLIAMS TRUMAN CAPOTE AND GERTRUDE STEIN THOUGH DEVOTED TO ONE ANOTHER AND MARRIED UNTIL HER DEATH BOWLES AND HER HUSBAND PURSUED SEPARATE HOMOSEXUAL LIAISONS WITH JANE HAVING A PARTICULARLY STRONG ATTACHMENT TO AN ARABIC WOMAN IN MOROCCO IN THE SUMMER HOUSE THE ONLY PLAY WRITTEN BY JANE BOWLES OPENED HERE IN DECEMBER 1953 THOUGH IT WAS NOT A COMMERCIAL SUCCESS IT HAS ALWAYS HAD STRONG ADHERENTS WHO FEEL IT HAS NEVER BEEN GIVEN THE RECOGNITION IT DESERVES NINE OUT OF 10 TIMES THE NOTION OF A NEGLECTED MASTERPIECE TURNS OUT TO BE WRONG WHEN WE ACTUALLY GET A CHANCE TO SEE THE PIECE THE REASONS FOR ITS ORIGINAL FAILURE ARE ALL TOO OBVIOUS IN THE SUMMER HOUSE HOWEVER IS ONE CASE IN WHICH TIME HAS MADE A DIFFERENCE THE DIFFERENCE IS NOT IN THE PLAY ITSELF WHICH STILL FAILS AS A CONVENTIONAL DRAMA THERE ARE TOO MANY ARBITRARY SHIFTS OF MOOD AND STORY THE MEN ARE STICK FIGURES AND THERE IS NO DEVELOPMENT NO FOLLOWTHROUGH AND CERTAINLY NO BUILD TO A CLIMAX PERHAPS THIS IS WHY NO ONE KNEW QUITE WHAT TO MAKE OF THE PLAY WHEN IT WAS FIRST PRODUCED NEITHER THE PERFORMERS WHO INCLUDED JUDITH ANDERSON MILDRED DUNNOCK AND JEAN STAPLETON THE DIRECTOR NOR INDEED BOWLES HERSELF WHO WROTE THREE QUITEDIFFERENT ENDINGS AND COULD NEVER DECIDE WHICH ONE SHE PREFERRED WHAT HAS HAPPENED IN THE 40YEAR INTERVAL SINCE IN THE SUMMER HOUSE FIRST APPEARED IS THAT WE HAVE ACQUIRED A NEW SENSIBILITY A REALIZATION THAT THEATER CAN TAKE ALTERNATE FORMS WE HAVE THE EXPERIENCE OF PLAYWRIGHTS SUCH AS MARIA IRENE FORNES AND TINA HOWE AND DIRECTORS SUCH AS ROBERT WILSON AND JOANNE AKALAITIS THIS NEW TYPE OF THEATER DOES NOT FUNCTION LIKE A CALCULATOR YOU CAN'T ADD UP THE PLOT TWISTS AND CHARACTER REVELATIONS PUSH A BUTTON AND GET A GRAND TOTAL RATHER IT IS A FORM OF COLLAGE A SEQUENCE OF AURAL AND VISUAL IMAGES MS AKALAITIS THE DIRECTOR OF THE CURRENT REVIVAL AT THE VIVIAN BEAUMONT THEATER AT LINCOLN CENTER RECOGNIZED THAT THIS THEATRICAL APPROACH WAS IDEAL FOR IN THE SUMMER HOUSE THE PLAY IS ABOUT WOMEN WIVES MOTHERS DAUGHTERS IN THEIR MANY RELATIONSHIPS MRS EASTMAN CUEVAS DIANNE WIEST IS DIVORCED FROM ONE LATIN MAN AND ABOUT TO MARRY ANOTHER MR SOLARES JAIME TIRELLI SHE LIVES IN A HOUSE ON THE COAST OF SOUTHERN CALIFORNIA WITH HER DAUGHTER MOLLY ALINA ARENAL A MOODY TACITURN YOUNG WOMAN WHO SPENDS MOST OF HER TIME HIDING IN A SMALL SUMMER HOUSE ON THE GROUNDS OF THE GARDEN BECAUSE SHE IS STRAPPED FOR FUNDS MRS EASTMAN CUEVAS TAKES IN BOARDERS AND ONE WHO APPEARS ON THE SCENE IS VIVIAN CONSTABLE KALI ROCHA AN EXUBERANT TEENAGER WHO ENTHUSES ABOUT EVERYTHING IN SIGHT BUT AT THE END OF ACT ONE EITHER COMMITS SUICIDE OR IS PUSHED OFF A CLIFF VIVIAN'S MOTHER FRANCES CONROY IS A WEALTHY UNLOVED ALCOHOLIC WHO ATTACHES HERSELF TO ANYONE SHE CAN FIND ACTUALLY EACH OF THE WOMEN IN THE PLAY IS UNLOVED AND ECCENTRIC ALTERNATELY SAD SELFISH MISUNDERSTOOD AND VERY VERY FUNNY TOWARD THE END OF ACT ONE MRS EASTMAN CUEVAS COMPLAINS OF HAVING MISPLACED HER POCKETBOOK THEN SHE LAUNCHES INTO A SOLILOQUY ABOUT HER UNHAPPINESS SHE IS DESPERATE I'M FRIGHTENED I CAN'T BREATHE I'M STIFLING AT HER MOST MISERABLE SHE SUDDENLY SPIES HER POCKETBOOK UNDER A TABLE THERE IT IS SHE PROCLAIMS HER MOOD HAVING SWITCHED INSTANTANEOUSLY FROM THE DISTRAUGHT TO THE MUNDANE IN A TRANSITION THAT RIVALS CHEKHOV NEAR THE END OF THE PLAY THERE IS A SCENE INVOLVING THE DRUNKEN MRS CONSTABLE AND THE DISILLUSIONED MRS EASTMAN CUEVAS IN WHICH MS CONROY AND MS WIEST REMINDED ME OF THOSE TWO VETERANS JOHN GIELGUD AND RALPH RICHARDSON IN HAROLD PINTER'S OLD TIMES MRS EASTMAN CUEVAS HAS JUST RETURNED FROM MEXICO HAVING LEFT HER MARRIAGE WITH MR SOLARES I ALWAYS FORGET SHE SAYS THAT I DON'T LIKE LATIN MEN THEN YOU SHOULDN'T KEEP MARRYING THEM REMONSTRATES MRS CONSTABLE I'VE ONLY MARRIED TWO MRS EASTMAN CUEVAS REPLIES MS AKALAITIS UNDERSTANDS THAT BECAUSE OF ITS OFFBEAT UNPREDICTABLE QUALITY A FORM OF SURREALISM IS THE BEST LENS THROUGH WHICH TO VIEW IN THE SUMMER HOUSE ACCORDINGLY THE SET DESIGNED BY GEORGE TSYPIN HAS ELEMENTS OF DALI AND MAGRITTE AND A BACKGROUND SKY OF REDS AND PURPLES RESEMBLING A ROTHKO CANVAS PHILIP GLASS HAS WRITTEN AN ARRESTING INSISTENT MUSICAL SCORE THAT NOT ONLY MARKS SCENE CHANGES BUT UNDERSCORES LENGTHY SECTIONS OF DIALOGUE THE OPENING TABLEAU HAS MRS EASTMAN CUEVAS SITTING AT A BALCONY KNITTING A SIXFOOTLONG BLOODRED SCARF FAR REMOVED FROM HER DAUGHTER AT THE OTHER SIDE OF THE STAGE IN THE SUMMER HOUSE CENTER STAGE IS AN OVERSIZED TREE ROOT THAT LOOKS LIKE AN UGLY REPTILE IN SCENES SUCH AS THIS ONE THE STAGE RESEMBLES A GIANT PAINTING WHEN CHARACTERS ENTER AND LEAVE THEY OFTEN MOVE IN SLOW MOTION LIKE UNREAL OTHERWORLDLY FIGURES STALKING THE LANDSCAPE OF THE HEART HAVING FOUND A KEY TO PRESENTING IN THE SUMMER HOUSE IT IS DISAPPOINTING THAT MS AKALAITIS DOES NOT ALWAYS SUCCEED IN HER EXECUTION ONE FAILURE IS THE CASTING OF MINOR ROLES ESPECIALLY MS ARENAL WHO IS COMPLETELY OUT OF HER DEPTH IN THE CRUCIAL ROLE OF THE DAUGHTER ANOTHER FAILURE IS THAT MS AKALAITIS DOESN'T CONVEY THE EMOTIONAL CLIMAX OF THE PLAY AT THE CONCLUSION MOLLY MUST CHOOSE BETWEEN HER HUSBAND LIONEL LIEV SCHREIBER A WAITER AT A SEAFOOD RESTAURANT AND HER MOTHER IT IS THE ONE SCENE IN WHICH THE WRITING SUCCEEDS AS UNABASHED DRAMA BUT ITS FULL VALUE HAS EVAPORATED ON STAGE STILL THE HAUNTING MUSICAL AND VISUAL IMAGES TOGETHER WITH THE UNEXPECTED HUMAN REVELATIONS AND ENCOUNTERS MAKE THIS A PRODUCTION OF MYSTERIOUS APPEAL AND UNUSUAL VIBRANCY 9308060116 930806 ECONOMY ESTIMATES OF WORLD OIL DEMAND DROP BUT PRICES MAY RISE ON OPEC SHORTFALL BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL THE INTERNATIONAL ENERGY AGENCY AGAIN LOWERED ITS ESTIMATE OF WORLD PETROLEUM DEMAND FOR 1993 THIS TIME BY 100000 BARRELS A DAY BUT SOME OIL ANALYSTS SAY PETROLEUM PRICES COULD FIRM IN THE FOURTH QUARTER ANYWAY THE INDICATED NEED FOR OIL FROM THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IN THE FOURTH QUARTER REMAINS ABOVE OPEC'S CURRENT PRODUCTION LEVELS BARRING A RETURN OF IRAQ TO THE OIL MARKET BEFORE YEAR END THAT COULD RESULT IN A FIRMING OF PETROLEUM PRICES IN THE FOURTH QUARTER REVERSING THE LONG SLIDE SOME OIL ANALYSTS SUGGEST IF IRAQI OIL DOESN'T COME INTO THE MARKET SUPPLIES COULD BE TIGHT LATER THIS YEAR SAID BERNARD J PICCHI AN OIL ANALYST AT KIDDER PEABODY & CO CRUDEOIL PRICES GENERALLY FELL AGAIN YESTERDAY ON THE NEW YORK MERCANTILE EXCHANGE SEPTEMBER CRUDE SETTLED 23 CENTS LOWER AT 1757 A BARREL THE IEA DOESN'T FORECAST REQUIREMENTS FOR OPEC'S OIL BUT IT DOES ESTIMATE PAST OPEC PRODUCTION AND IT FORECASTS NONOPEC SUPPLIES AS WELL AS WORLD OIL DEMAND DEMAND FOR OPEC OIL CAN BE CALCULATED FROM THOSE ESTIMATES ASSUMING NORMAL ADJUSTMENTS TO WORLD OIL INVENTORIES THE IEA ESTIMATES OPEC'S JULY PRODUCTION AT 246 MILLION BARRELS A DAY THAT IS IN LINE WITH OTHER INDUSTRY ASSESSMENTS OF OPEC'S OUTPUT WHICH IS GENERALLY BELIEVED TO BE TOO HIGH AND LARGELY RESPONSIBLE FOR THE 3ABARREL DROP IN OIL PRICES OVER THE PAST THREE MONTHS SUPPLIES ASIDE THE IEA HAD ALREADY MADE SEVERAL DOWNWARD REVISIONS IN ITS OUTLOOK FOR DEMAND THIS YEAR IN ITS MONTHLY OIL MARKET REPORT RELEASED YESTERDAY THE IEA FURTHER LOWERED ITS DEMAND FORECASTS APPARENTLY BECAUSE OF THE WORLD'S SLUGGISH ECONOMIES TO 661 MILLION BARRELS A DAY FOR THE CURRENT QUARTER AND TO 687 MILLION A DAY FOR THE FOURTH QUARTER THE LATEST FORECASTS ARE DOWN 100000 AND 200000 BARRELS A DAY RESPECTIVELY FROM ITS ESTIMATES A MONTH AGO STILL THE IEA EXPECTS DEMAND FOR THE YEAR TO RISE SLIGHTLY TO 671 MILLION BARRELS A DAY ALTHOUGH THAT IS DOWN 100000 FROM THE JULY 6 ESTIMATE OF 672 MILLION BARRELS FOR 1993 IT WOULD BE UP FROM THE 1992 AVERAGE OF 67 MILLION MORE SIGNIFICANT IS ITS ESTIMATE OF A YEARONYEAR INCREASE OF 900000 BARRELS A DAY FOR THE FOURTH QUARTER THESE FIGURES INDICATE THAT IF OPEC CONTINUES PRODUCING AT CURRENT VOLUMES IT WILL FALL SHORT OF FILLING DEMAND FORESEEN BY THE IEA BY 13 MILLION BARRELS A DAY THIS DOESN'T TAKE INTO ACCOUNT LIKELY WITHDRAWALS IN THE FOURTH QUARTER FROM WORLD OIL INVENTORIES WHICH OFTEN ARE DRAWN DOWN IN THE PEAKUSE PERIOD OF THE WINTER MONTHS IN RECENT YEARS SUCH DRAWDOWNS HAVE AVERAGED ABOUT 700000 BARRELS A DAY THAT STILL WOULD LEAVE A GAP OF 600000 BARRELS A DAY TO BE MET BY OPEC THAT GAP SOME SAY COULD PRESS OPEC TO CAPACITY IF IRAQ REMAINS EXCLUDED WHEN IRAQ WILL BE ABLE TO EXPORT ANY OIL IF ONLY FOR AN EMERGENCY SALE OF 16 BILLION PROPOSED BY THE UNITED NATIONS FOR HUMANITARIAN PURPOSES REMAINS UP TO THE UN AND TO IRAQI PRESIDENT SADDAM HUSSEIN SADDAM IS PUTTING THE ONETIME SALE ON THE BACK BURNER TO EMPHASIZE A LIFTING OF ALL THE UN SANCTIONS SAID WILLIAM RANDOL AN INTERNATIONAL OIL ANALYST AT SALOMON BROTHERS BUT I THINK WE WILL SEE IRAQI OIL IN THE FOURTH QUARTER EVEN WITHOUT IRAQI OIL MR RANDOL QUESTIONS WHETHER THE PRICE OF PETROLEUM WILL RISE LATE THIS YEAR IT COULD GO EITHER WAY SAID MR RANDOL BUT IN THE PAST TWO WINTERS WE EXPECTED A SUPPLY TIGHTNESS AND THE PRICE WENT DOWN 9308060115 930806 FINANCING BUSINESS ROADMASTER INDUSTRIES INC ROADMASTER INDUSTRIES INC ENGLEWOOD COLO SAID ITS REGISTRATION STATEMENT RELATING TO A PUBLIC OFFERING OF 45 MILLION CONVERTIBLE SUBORDINATED DEBENTURES DUE 2003 WAS DECLARED EFFECTIVE BY THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY SAID THE 8 DEBENTURES BEGAN TRADING ON THE AMERICAN STOCK EXCHANGE UNDER THE SYMBOL RDMD NET PROCEEDS TO THE COMPANY ESTIMATED AT 422 MILLION WILL BE USED BY ROADMASTER FOR THE PREVIOUSLY ANNOUNCED ACQUISITION OF FLEXIBLE FLYER CO FOR CAPITAL EQUIPMENT AND EXPANSION AND TO INCREASE WORKING CAPITAL 9308060114 930806 FINANCING BUSINESS FREEPORTMCMORAN COPPER & GOLD INC FREEPORTMCMORAN COPPER & GOLD INC NEW ORLEANS SAID IT OFFERED TO THE PUBLIC SIX MILLION DEPOSITARY SHARES AT 3877 A SHARE UNDER ITS SHELF REGISTRATION FILED IN JULY EACH DEPOSITARY SHARE REPRESENTS 005 SHARE OF GOLDDENOMINATED PREFERRED STOCK THE MINING COMPANY SAID IT EXPECTS THE OFFERING TO YIELD NET PROCEEDS OF 221 MILLION EXCLUDING A 15 UNDERWRITERS' OVERALLOTMENT OPTION THE MONEY WILL BE USED BY PT FREEPORT INDONESIA CO THE COMPANY'S PRINCIPAL OPERATING UNIT FOR CAPITAL EXPENDITURES AND TO REDUCE BORROWINGS UNDER ITS CREDIT AGREEMENT THE LEAD UNDERWRITER FOR THE OFFERING IS LEHMAN BROTHERS 9308060113 930806 LETTERS TO THE EDITOR RIGHT TO DEVELOPMENT' DANGEROUS PROPOSITION ANDREW REDING IS DISINGENUOUS WHEN HE ASSERTS THAT THE INTERNATIONAL COVENANT ON ECONOMIC SOCIAL AND CULTURAL RIGHTS DOES NOT ESTABLISH A RIGHT TO DEVELOP COUNTERPOINT JULY 15 WHILE THE COVENANT ITSELF DOES NOT EXPLICITLY MENTION A RIGHT TO ECONOMIC DEVELOPMENT WELLSETTLED INTERPRETATIONS OF THIS COVENANT BY THE UNITED NATIONS MAKE IT CLEAR THAT SUCH A RIGHT IS INCLUDED UNDER TRADITIONS OF MODERN INTERNATIONAL LAW THE INTERNATIONAL COVENANT MUST BE READ IN CONJUNCTION WITH THE 1948 UNIVERSAL DECLARATION OF HUMAN RIGHTS COMMONLY INTERPRETED TO INCLUDE A RIGHT TO DEVELOPMENT AND SUBSEQUENT UN PRONOUNCEMENTS ONE SUCH PRONOUNCEMENT IS THE 1986 DECLARATION ON THE RIGHT TO DEVELOPMENT THIS DOCUMENT DESCRIBES THE RIGHT TO DEVELOPMENT AS AN INALIENABLE HUMAN RIGHT BY VIRTUE OF WHICH EACH PERSON AND ALL PEOPLES ARE ENTITLED TO PARTICIPATE IN CONTRIBUTE TO AND ENJOY ECONOMIC SOCIAL CULTURAL AND POLITICAL DEVELOPMENT ACCORDING TO THE MARCH 1993 UN CHRONICLE THE UN ITSELF INTERPRETS THE PHRASE ALL PEOPLES TO INDICATE A COLLECTIVE RIGHT TO DEVELOPMENT CONTRARY TO MR REDING'S ARGUMENT THE CLINTON ADMINISTRATION'S SUPPORT FOR THE INTERNATIONAL COVENANT DOES INDEED SIGNAL THE PRESIDENT'S WILLINGNESS TO RECOGNIZE A DANGEROUSLY BROAD AND COLLECTIVIST RIGHT TO DEVELOPMENT 9308060112 930806 RETAILING BODY SHOP HAS A FEW ACHES AND PAINS BY JUDITH VALENTE STAFF REPORTER OF THE WALL STREET JOURNAL LITTLEHAMPTON ENGLAND THE BODY SHOP ISN'T GROWING OLDER GRACEFULLY IN THE PAST 16 YEARS THE PURVEYOR OF NATURAL PRODUCTS TO CLEANSE BEAUTIFY AND SOOTHE THE HUMAN FORM GREW FROM A SINGLE STORE IN BRITAIN TO A 250 MILLION BUSINESS WITH OUTLETS IN 41 COUNTRIES BUT THE COMPANY IS NOW CONFRONTED WITH PROBLEMS ON SEVERAL FRONTS PROFITS ARE DOWN COMPETITION IS GROWING CRITICS ARE CARPING AND SOME GREEN FUNDS HAVE DESERTED THE STOCK OF BODY SHOP INTERNATIONAL PLC CITING FINANCIAL REASONS BODY SHOP DID RECEIVE A BOOST LAST WEEK WHEN IT AND ITS FOUNDERS ANITA AND T GORDON RODDICK WERE AWARDED 276000 ABOUT 414000 IN A LIBEL SUIT THEY FILED OVER A TELEVISION REPORT LAST YEAR THAT CHALLENGED THEIR IMAGE AS A COMPANY WITH A SOCIAL CONSCIENCE WE FEEL VINDICATED MR RODDICK BODY SHOP'S CHAIRMAN SAID AFTER THE VERDICT THE TELEVISION STATION SAID IT WOULD APPEAL THE CURRENT DIFFICULTY COMES AT A CRITICAL TIME THE COMPANY JUST BUILT A NEW 13 MILLION OFFICE ON A 45ACRE SITE OUTSIDE RALEIGH NC TO OVERSEE A MAJOR PUSH INTO THE US MARKET BODY SHOP ALREADY HAS 133 US STORES AND PLANS TO OPEN AS MANY AS 50 NEW STORES THERE A YEAR BODY SHOP INTERNATIONAL SHARES SOON WILL START TRADING IN AMERICA IN SOME WAYS BODY SHOP'S DIFFICULTIES REFLECT NORMAL GROWING PAINS AFTER A 30 MILLION SPENDING SPREE FOR EXPANSION THE COMPANY'S PRETAX PROFIT SLID 15 IN THE YEAR ENDED FEB 28 TO 215 MILLION FROM 252 MILLION A YEAR EARLIER DESPITE A 14 INCREASE IN SALES TO 1683 MILLION FROM 1474 MILLION BUT A POTENTIALLY BIGGER THREAT LIES IN THE MANY COPYCAT COMPANIES THAT HAVE ENTERED THE NATURALPRODUCTS MARKET RAISING FEARS OF SATURATION IN THE US ALONE BODY SHOP WHOSE OFFERINGS INCLUDE THE LIKES OF PEPPERMINT FOOT LOTION PASSION FRUIT SKIN CLEANSERS AND WHITE MUSK SHOWER GEL ESTIMATES THAT AT LEAST 20 STORES HAVE COPIED ITS PRODUCTS AND SHOP FORMAT GIANT COSMETIC COMPANIES NOW SELL THEIR OWN ORGANIC PERSONALCARE PRODUCTS MEANWHILE DRUGSTORES DISCOUNTERS AND SUPERMARKETS ARE OFFERING GENERIC BRANDS THAT UNDERCUT BODY SHOP ON PRICE ALL THIS MEANS THE BODY SHOP WILL HAVE TO WORK HARDER TO DISTINGUISH ITSELF FROM ITS RIVALS THE BODY SHOP CAME UP WITH A BRILLIANT CONCEPT SAYS CAROLINE STEWART RETAIL ANALYST AT SG WARBURG SECURITIES IN LONDON THE DIFFICULTY IS YOU CAN'T PATENT NATURAL PRODUCTS THE VICTORY IN THE JUSTCONCLUDED LIBEL CASE SHOULD HELP RESTORE THE COMPANY'S IMAGE ALTHOUGH THE PUBLICITY THE LAWSUIT GENERATED NO DOUBT HURT BODY SHOP THE TELEVISION PROGRAM CHALLENGED BODY SHOP'S CLAIM THAT NONE OF ITS PRODUCTS ARE TESTED ON ANIMALS IT WAS A SERIOUS CHARGE BODY SHOP'S CHIEF MARKETING STRATEGY IS TO CONVINCE CUSTOMERS THAT THEY AREN'T JUST BUYING TOILETRIES THEY ARE BACKING PRINCIPLES FOR EXAMPLE BODY SHOP TAKES GREAT PAINS TO LET THE WORLD KNOW IT EMPLOYS ORPHAN BOYS IN INDIA AND BUYS INGREDIENTS FROM IMPOVERISHED TRIBES IN BRAZIL AND AS FOR ANIMAL TESTING BODY SHOP HEADQUARTERS HERE IN MS RODDICK'S HOMETOWN DISPLAYS A BLOWNUP PICTURE OF A RABBIT'S ULCERATED EYE WHICH THE COMPANY SAYS OCCURRED DURING A COMPETITOR'S PRODUCT TEST ANITA RODDICK OPENED THIS WHOLE ISSUE OF ANIMAL TESTING TO PUBLIC SCRUTINY AND DEBATE SAYS PETER WINDETT CREATIVE DIRECTOR OF BODYCARE PRODUCT MAKER CRABTREE & EVELYN DISCUSSING THE TV SHOW AND THE LIBEL SUIT SOMEONE WAS BOUND TO PUT HER TO THE TEST THE RODDICKS TOOK THE BROADCAST PERSONALLY THEY ALLEGE THAT THE PRODUCERS DELIBERATELY SOUGHT TO MALIGN BODY SHOP RESULTING IN HATE MAIL FROM CUSTOMERS AND LOST SALES AND PROFITS THE STORY NOTED THAT BODY SHOP IN 1989 STOPPED LABELING ITS PRODUCTS NOT TESTED ON ANIMALS THE NEW LABELS SIMPLY SAID AGAINST ANIMAL TESTING THE MOVE FOLLOWED REVELATIONS THAT SOME BODY SHOP SUPPLIERS USED INGREDIENTS THAT HAVE BEEN TESTED ON ANIMALS JUST LIKE THE SUPPLIERS OF OTHER COSMETICS COMPANIES ON THE WITNESS STAND MR RODDICK ACKNOWLEDGED THIS POINT WHILE NOTING THAT BODY SHOP DOESN'T USE INGREDIENTS TESTED ON ANIMALS IN THE LAST FIVE YEARS WHEN AN ATTORNEY FOR THE TELEVISION STATION ASKED WHY CUSTOMERS WEREN'T TOLD THIS MR RODDICK REPLIED THERE'S NO ROOM ON THE LABEL TO EXPLAIN EVERYTHING THE FIVEYEAR CUTOFF IS A STANDARD ACCEPTABLE TO MOST GREEN FUNDS SAYS LEE COATES A BROKER WITH THE ETHICAL INVESTORS GROUP EVEN SO BODY SHOP'S STOCK BEGAN SLIPPING IN THE WEEKS FOLLOWING THE BROADCAST AND THEN FELL SHARPLY IN SEPTEMBER AFTER THE COMPANY FORECAST WEAK RESULTS BODY SHOP SHARES CLOSED AT 218 PENCE 327 UNCHANGED YESTERDAY IN TRADING ON THE LONDON STOCK EXCHANGE ABOVE LAST YEAR'S LOW OF 150 PENCE A SHARE BUT STILL WELL OFF THE HIGH OF 375 PENCE IN EARLY 1992 MR COATES SAYS BODY SHOP STOCK IS NO LONGER IN THE PORTFOLIO OF MOST OF THE 35 FUNDS HIS GROUP DEALS WITH WHICH HE SAYS IS BASED SOLELY ON ECONOMICS ALTHOUGH THE TRIAL PROBABLY BROUGHT THE ISSUE TO MORE PEOPLE THAN THE NUMBER WHO SAW THE INITIAL TV BROADCAST WINNING THE LIBEL SUIT COULD PUT THE ANIMALTESTING CONTROVERSY TO REST DESPITE ITS CURRENT PROBLEMS BODY SHOP STILL STANDS OUT AS A SURPRISING BRITISH BUSINESS SUCCESS MS RODDICK A ONETIME TEACHER KIBBUTZ DWELLER AND RESTAURATEUR OPENED THE FIRST SHOP IN THE FADED SEASIDE RESORT OF BRIGHTON IN 1976 WITH A 4000 LOAN AFTER HER HUSBAND TOOK OFF TO RIDE A HORSE FROM BUENOS AIRES TO NEW YORK WHEN MR RODDICK RETURNED THE FOLLOWING YEAR HIS HORSE HAVING DIED IN PERU MS RODDICK WAS NO LONGER MIXING CREAMS IN THE BASEMENT OR SPRAYING AROMATIC ESSENCES OUTSIDE THE SHOP DOOR TO LURE CUSTOMERS IN BODY SHOP'S RECYCLABLE BOTTLES KITS FOR EXPECTANT MOTHERS COMPLETE WITH FLANNEL CLOTH FOR MOPPING BROW AND SOAP BARS SHAPED LIKE ENDANGERED SPECIES WERE A HIT TODAY THE BODY SHOP CHAIN INCLUDES 900 STORES FROM ARGENTINA TO THE ARAB EMIRATES BODY SHOP'S FUTURE JUST MIGHT REST WITH CUSTOMERS LIKE JEAN CUTLER A STUDENT FROM SURREY MS CUTLER WHO FALLS INTO THE 17TO25YEAROLD SEGMENT THE COMPANY NEEDS TO ATTRACT WAS SO DISTURBED WHEN SHE HEARD BODY SHOP MIGHTN'T PRACTICE ALL IT PREACHES THAT SHE SIGNED UP FOR A TOUR OF ITS PAGODASHAPED HEADQUARTERS ABOUT 2000 PEOPLE TOUR THE FACILITY EACH WEEKDAY PAYING 6 EACH AFTER SEEING THE ANTISEPTIC ROOMS WHERE HUMAN GUINEA PIGS TRY OUT NEW PRODUCTS AND RECEIVING A CRASH COURSE IN RECYCLING GARBAGE MS CULTER WALKED AWAY REASSURED IF NOT TOTALLY SATISFIED I BELIEVE THEY DON'T DO CRUEL THINGS TO ANIMALS AND I BELIEVE THE BODY SHOP DOES A LOT OF GOOD SHE SAYS BUT THEY DO GO OVER THE TOP BOASTING ABOUT IT 9308060111 930806 CHRYSLER EXTENDS STOCK PROGRAM HIGHLAND PARK MICH CHRYSLER CORP SAID IT EXTENDED THE EXPIRATION DATE OF ITS LOWCOST COMMON STOCK SELLING AND PURCHASING PROGRAM FOR STOCKHOLDERS WHO OWN FEWER THAN 100 SHARES OF CHRYSLER COMMON STOCK THE PROGRAM ORIGINALLY SET TO RUN FROM JULY 7 TO TODAY IS SCHEDULED TO EXPIRE SEPT 7 ELIGIBLE STOCKHOLDERS CAN SELL THEIR SHARES OR PURCHASE ENOUGH ADDITIONAL SHARES TO BRING TOTAL HOLDINGS TO EXACTLY 100 SHARES CHRYSLER SAID IT WON'T PURCHASE OR SELL ANY SHARES 9308060110 930806 KLM ROYAL DUTCH AIRLINES FLIGHT TRAFFIC CAPACITY ROSE IN JULY SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM KLM ROYAL DUTCH AIRLINES REPORTED ONGOING BRISK INCREASES IN ITS PASSENGER AND FREIGHT HAULAGE IN JULY AND IMPROVEMENT IN CAPACITY UTILIZATION BUT A SPOKESMAN FOR THE 382 STATEOWNED DUTCH FLAG CARRIER NOTED THAT THE COMPANY'S OPERATING MARGINS STILL ARE BEING PRESSURED SEVERELY BY THE FIERCE PRICE COMPETITION ON CROWDED ROUTES HE DIDN'T ELABORATE KLM SAID TOTAL AIRLINE TRAFFIC IN JULY ROSE 19 TO 598 MILLION TON KILOMETERS FROM THE 5015 MILLION TON KILOMETERS A YEAR EARLIER PASSENGER HAULAGE ROSE 19 TO 3569 MILLION TON KILOMETERS FROM 2998 MILLION TON KILOMETERS WHILE CARGO TRANSPORT INCREASED 20 TO 2411 MILLION TON KILOMETERS FROM 2017 MILLION TON KILOMETERS LIKE OTHER AIRLINES KLM MEASURES ITS UNDERLYING BUSINESS IN STANDARD TERMS OF WEIGHT CARRIED OVER DISTANCE A TON KILOMETER REPRESENTS ABOUT 10 PASSENGERS OR ONE METRIC TON ABOUT 220462 POUNDS OF FREIGHT CARRIED OVER ONE KILOMETER THE INCREASE IN AIRLINE TRAFFIC OUTPACED THE 14 RISE IN THE COMPANY'S PRODUCTIVE CAPACITY ALLOWING FOR IMPROVEMENT IN CAPACITY UTILIZATION OR THE SOCALLED LOAD FACTOR IN THE LATEST REPORTING MONTH THE KLM FIGURES SHOW JULY'S LOAD FACTOR INCREASED TO 760 FROM 726 KLM'S PRODUCTIVE CAPACITY REPRESENTS THE TYPE AND NUMBER OF AIRCRAFT IN SERVICE THE NUMBER OF ROUTES FREQUENCY OF SERVICE SEATING AND CARGO SPACE FLEET ALLOCATION AND OTHER FACTORS 9308060109 930806 NORFOLK SOUTHERN GETS IBM JOB FORT WAYNE IND NORFOLK SOUTHERN CORP'S CUSTOMIZED LOGISTICS SERVICES UNIT SAID IT RECEIVED A TWOYEAR CONTRACT TO PROVIDE LOGISTICS SERVICES TO INTERNATIONAL BUSINESS MACHINES CORP TERMS WEREN'T DISCLOSED 9308060108 930806 RECENT SEC FILINGS WASHINGTONTHE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AGRICULTURAL MINERALS & CHEMICALS INC AN OFFERING OF 175 MILLION PRINCIPAL AMOUNT OF ITS SENIOR NOTES VIA MORGAN STANLEY & CO EQUITABLE RESOURCES INC AN OFFERING OF 27 MILLION COMMON SHARES VIA FIRST BOSTON CORP MORGAN STANLEY & CO AND SMITH BARNEY SHEARSON INC TRILITE INC A UNIT OF HELIONETICS INC AN OFFERING OF ONE MILLION UNITS WHICH CONSISTS OF ONE COMMON SHARE AND A WARRANT TO PURCHASE AN ADDED ONEHALF COMMON SHARES VIA DICKINSON & CO WALT DISNEY CO A SHELF OFFERING OF UP TO 1 BILLION IN DEBT SECURITIES 9308060107 930806 LIBERTY BANCORP INC ACQUISITION TULSA OKLA LIBERTY BANCORP INC SAID IT HAS SIGNED A LETTER OF INTENT TO BUY TULBANCORP INC AND ITS WHOLLY OWNED SUBSIDIARY BANK OF TULSA IN EXCHANGE FOR STOCK TERMS WEREN'T DISCLOSED BANK OF TULSA HAS TOTAL ASSETS OF 69 MILLION DEPOSITS OF 63 MILLION AND NET LOANS OF 51 MILLION LIBERTY SAID THE PURCHASE WHICH STILL MUST BE APPROVED BY REGULATORS AND BOTH COMPANIES' BOARDS WILL BRING ITS NUMBER OF TULSA LOCATIONS TO 11 9308060106 930806 EPA SUGGESTS BOOST IN AUTO STANDARDS FOR FUEL EFFICIENCY BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS CONSIDERING TOUGHER FUELEFFICIENCY STANDARDS FOR AUTOMOBILES TO HELP MEET ITS PLEDGE TO REDUCE EMISSIONS OF GASES THAT INCREASE GLOBAL WARMING IN A PROPOSAL TO AN INTERAGENCY TASK FORCE THE ENVIRONMENTAL PROTECTION AGENCY SUGGESTED BOOSTING CORPORATE AVERAGE FUEL EFFICIENCY OR CAFE STANDARDS AS ONE WAY TO REDUCE GREENHOUSEGAS EMISSIONS IN AN EARTH DAY SPEECH IN APRIL PRESIDENT CLINTON SAID THAT THE US WOULD LOWER SUCH EMISSIONS PRINCIPALLY CARBON TO 1990 LEVELS BY THE YEAR 2000 AND HE CREATED THE TASK FORCE TO DETERMINE HOW TO MEET THE TARGET ITS RECOMMENDATIONS ARE DUE THIS MONTH THE EPA'S PROPOSAL DIDN'T SPECIFY HOW MUCH THE EFFICIENCY STANDARDS SHOULD BE RAISED AND PAUL STOLPMAN THE AGENCY'S DIRECTOR FOR THE OFFICE OF ATMOSPHERIC PROGRAMS STRESSED THAT IT WAS ONLY ONE OF A LIST OF OPTIONS THAT WE THINK NEED TO BE CONSIDERED IF OTHER MEASURES FAIL TO ACHIEVE THE TARGET FOR THE YEAR 2000 THE TASK FORCE HASN'T MADE ANY FINAL DECISIONS YET ACCORDING TO SEVERAL MEMBERS BUT IF ADOPTED THE PROPOSAL COULD REVIVE A DORMANT CLINTON CAMPAIGN PROMISE TO RAISE FUELEFFICIENCY STANDARDS TO 40 MILES PER GALLON BY THE YEAR 2000 FROM THE CURRENT 275 MILES PER GALLON MICHAEL STANTON A LOBBYIST FOR THE AMERICAN AUTOMOBILE MANUFACTURERS ASSOCIATION SAID THAT RAISING CAFE STANDARDS WOULD CAUSE ECONOMIC DISRUPTION HE ADDED THAT THE EFFECT ON THE GREENHOUSEGAS TARGET WOULD BE MINIMAL BECAUSE NEW CAFE STANDARDS COULDN'T BE IMPLEMENTED BEFORE THE 1999 MODEL YEAR BUT DAN BECKER OF THE SIERRA CLUB ESTIMATED THAT TOUGH CAFE STANDARDS COULD REDUCE EMISSIONS BY 30 MILLION TO 40 MILLION METRIC TONS BY THE YEAR 2000 SINCE IT WAS CREATED THE TASK FORCE HAS CONSIDERED A VARIETY OF POLICY OPTIONS TO MEET PRESIDENT CLINTON'S EARTH DAY PLEDGE INCLUDING A PLAN THAT WOULD MODIFY THE PLEDGE BY ALLOWING US CORPORATIONS TO ACHIEVE REQUIRED GREENHOUSEGASEMISSION REDUCTIONS AT OVERSEAS PLANTS RATHER THAN IN THE US THOUGH THAT PROPOSAL HASN'T BEEN RULED OUT ENERGY SECRETARY HAZEL O'LEARY WHO PREVIOUSLY WAS SAID TO FAVOR IT NOW SAYS SHE DOESN'T SEPARATELY THE EPA SAID YESTERDAY THAT COALFIRED UTILITIES CAN REDUCE THEIR NITROGEN OXIDE EMISSIONS BY SWITCHING TO NATURAL GAS IN THE SUMMER SEASON RATHER THAN BY ALTERING COMBUSTION EQUIPMENT THE AGENCY SAID THAT BESIDES MEETING THE MANDATE OF THE CLEAN AIR ACT TO REDUCE SMOG THE INITIATIVE WOULD HELP TO REDUCE GLOBAL WARMING 9308060105 930806 A CONSTANT RELATIONSHIP BY W KURT HAUSER LAURA TYSON AND OTHER MEMBERS OF THE CLINTON ADMINISTRATION HAVE SOUGHT TO DISCREDIT CLAIMS ON THIS PAGE THAT TAX INCREASES ON THE WEALTHIEST 12 OF AMERICANS WILL NOT RAISE REVENUES BUT SUCH ARGUMENTS MISS THE MARK TAX INCREASES MAY OR MAY NOT RAISE REVENUE IN ANY ONE YEAR PARTICULARLY IF THEY ARE RETROACTIVE BUT THEY WILL HARM ECONOMIC ACTIVITY JOB CREATION SAVINGS AND INVESTMENT THE PERCENTAGE OF THE GROSS DOMESTIC PRODUCT COLLECTED IN TAX RECEIPTS BY THE FEDERAL GOVERNMENT OVER THE PAST FOUR DECADES IS CONSTANT REGARDLESS OF TAX RATES THIS IS BECAUSE THE ECONOMY RESPONDS TO CHANGES IN TAX RATES THE ECONOMY AS MEASURED BY GDP NEW BUSINESS FORMATION AND EMPLOYMENT GROWTH HAS ON AVERAGE ACCELERATED IN THE QUARTERS FOLLOWING REDUCTIONS IN TAX RATES IT DECELERATED IN THE QUARTERS FOLLOWING INCREASES IN TAX RATES IN THE POSTWAR PERIOD EVERY SUBSTANTIVE CHANGE IN TAX RATES HAS PRODUCED THIS PATTERN THE CLINTON BUDGET PROPOSAL FAILS ON THE BASIS OF HISTORICAL EVIDENCE AND ECONOMIC THEORY THE ONE POINT THAT ECONOMISTS OF EVERY PERSUASION FROM SOCIALIST TO CAPITALIST AGREE ON IS THAT TAX DECREASES STIMULATE ECONOMIC ACTIVITY AND TAX INCREASES IMPEDE ECONOMIC ACTIVITY TAX INCREASES DURING PERIODS OF WEAK ECONOMIC ACTIVITY CAN BE PARTICULARLY DAMAGING A RETROACTIVE TAX INCREASE IN 1932 ALSO INTENDED TO REDUCE THE DEFICIT PLUNGED THE NATION FROM RECESSION TO DEPRESSION THE ADMINISTRATION HAS ATTEMPTED TO OBSCURE THE RELATIONSHIP BETWEEN MARGINAL TAXES GOVERNMENT TAX RECEIPTS AND ECONOMIC PERFORMANCE IT HAS OFFERED SUCH DIVERSIONARY EVIDENCE AS THE VARIATION IN TAX RECEIPTS THE CHANGING COMPOSITION OF FEDERAL REVENUES THE CHANGING THRESHOLD OF THE TOP MARGINAL RATE CHANGES IN THE DEFINITION OF TAXABLE INCOME AND MODELS OF A HYPOTHETICAL FAMILY OF FOUR AFTER ALL SUCH DIVERSIONS THE FACT REMAINS THAT FEDERAL GOVERNMENT TAX RECEIPTS AS A PERCENTAGE OF GDP HAVE FLUCTUATED ONLY NARROWLY AROUND 19 REGARDLESS OF CHANGES IN MARGINAL TAX RATES SURTAXES CAPITALGAINS TAXES DEPRECIATION SCHEDULES ENERGY TAXES IRAS AND SO ON THIS IS MADE CLEAR IN THE CHART ABOVE SEE RELATED ILLUSTRATIONS WSJ AUGUST 6 1993 ANOTHER VERSION OF WHICH FIRST APPEARED IN AN ARTICLE I WROTE ON THIS PAGE EARLIER THIS YEAR THE CHART LOOKS BUMPIER THAN ITS EARLIER VERSIONS BECAUSE THE SCALE HAS BEEN MAGNIFIED BUT WHETHER THE SCALE HAS BEEN MAGNIFIED OR COMPRESSED THE RELATIONSHIP OF GOVERNMENT RECEIPTS TO GDP STAYS THE SAME IN AN ARTICLE EARLIER THIS WEEK MRS TYSON COMPLAINED ABOUT A SCALE SHOWING 100 OF GNP BUT OTHER SCALES SHOW THE SAME INEXORABLE TENDENCY TO RETURN TO THE 195 LINE AS THE ECONOMY ADJUSTS PARTLY THROUGH THE SUPPOSEDLY EXTRANEOUS MEANS SHE MENTIONED MOST IMPORTANT OF ALL TAX RATES AFFECT GDP ITSELF RATE CHANGES THAT REWARD RISKTAKING ENTREPRENEURSHIP AND RETURNS ON BOTH LABOR AND CAPITAL PRODUCE A LARGER GDP THEY ALSO PRODUCE LARGER REVENUES THAN WOULD OTHERWISE BE THE CASE MRS TYSON'S ARTICLE FOCUSED ON CHANGES IN THE PERSONAL INCOME TAX WHICH ACCOUNTS FOR ABOUT 37 OF TAX RECEIPTS IT IS TO BE EXPECTED THAT OVER THE SHORT TERM TAX COLLECTION AS A PERCENTAGE OF GDP WILL FLUCTUATE THE TIMING OF TAX RECEIPTS IN ANY ONE QUARTER OR YEAR CAN BE AFFECTED BY WEATHER EXOGENOUS SUPPLY OR DEMAND DISLOCATIONS ECONOMIC GROWTH AND THE CONSCIOUS SHIFT OF INCOME OR EXPENSES FOR TAX REASONS SUCH AS THAT UNDERTAKEN BY HILLARY RODHAM CLINTON WHEN SHE MOVED INCOME TO 1992 FROM 1993 A SURTAX OR RETROACTIVE TAX INCREASE EVENTS NOW IMMINENT WILL SURELY TEMPORARILY RAISE COLLECTIONS THE SECOND CHART WHICH FIRST APPEARED ON THIS PAGE WITH MRS TYSON'S ARTICLE INDEED SHOWS THAT PERSONAL INCOME TAX RECEIPTS WILL VARY WHETHER HER INFLECTION POINTS ARE CONSISTENTLY DUE TO CHANGES IN TOP MARGINAL RATES IS OPEN TO QUESTION AS READERS STUDY THIS CHART WHICH MRS TYSON OFFERS TO PROVE THAT RAISING TAXES WILL RAISE REVENUES THEY SHOULD KEEP IN MIND THAT PERSONAL INCOME TAX RECEIPTS HISTORICALLY TEND TO DECLINE IN THE FIRST YEAR OF AN ECONOMIC RECOVERY FOLLOWING A RECESSION AS WAS THE CASE IN 1971 1975 AND 1983 THE TAX REDUCTION ACT OF 1975 DID NOT ALTER THE CRITICAL TOP MARGINAL TAX RATE THE 1981 TAX CUT IN MARGINAL RATES WAS PHASED IN OVER THREE YEARS AND THE BIG TAX INCREASE OF 1982 WAS NOT HIGHLIGHTED ON THE CHART THE GOVERNMENT'S PREDICTIONS ABOUT ITS BUDGET ARE QUESTIONABLE THE ADMINISTRATION HAS TARGETED THE CURRENT TAX INCREASE ON THE WEALTHIEST 12 OF AMERICANS IT PROJECTS THAT FOCUS WILL GENERATE REVENUE INCREASES BUT THIS ASSUMPTION DOES NOT ALLOW FOR ALTERATION IN WORK EFFORT NOR FOR INCOME OR ASSET SHIFTS NOR FOR THE RELATIONSHIP OF THE WEALTHY TO THE REST OF THE ECONOMY IT ASSUMES THAT A SECTOR OF THE CITIZENRY IN THIS CASE THE WEALTHIEST 12 CAN BE TARGETED WITHOUT ANY IMPACT ON THE REMAINING 988 THE TOP 12 DO NOT LIVE IN A VACUUM OUR SOCIETY AND ECONOMY ARE HIGHLY INTERWOVEN EMPLOYEES EMPLOYERS PROVIDERS AND USERS OF SOCIAL SERVICES CONSUMERS SAVERS AND INVESTORS ARE ALL INTERDEPENDENT THIS DYNAMIC IS LOST IN ALL STATIC MODELS USED TO FORECAST THE EFFECT ON THE ECONOMY OF CHANGES IN THE RATE OF TAXATION THE JOINT COMMITTEE ON TAXATION AND THE TREASURY DEPARTMENT BODIES PARTICULARLY GIVEN TO STATIC MODELS HAVE A PARTICULARLY SORRY RECORD OF FORECASTING REVENUES FROM CHANGING TAX LEGISLATION THE AMOUNT OF REVENUE COLLECTED FROM THE 40 INCREASE IN THE CAPITALGAINS TAX RATE IN 1986 WAS SHORT OF THE FORECAST BY SOME 50 IN 1989 AND 1990 THE LUXURY TAX OF 1990 WHICH ALSO TARGETED THE WEALTHY NOT ONLY FELL SHORT OF RAISING THE PROJECTED REVENUE BUT ACTUALLY COST THE GOVERNMENT MONEY AS IT HAD TO PROVIDE UNEMPLOYMENT BENEFITS TO THE WORKERS WHO LOST THEIR JOBS WHEN THE SALE OF LUXURY BOATS AIRPLANES AND AUTOMOBILES WITHIN THE US SCREECHED TO A HALT THE STATIC MODELS DID NOT CALCULATE THE RESPONSE BY CONSUMERS TO A HIGHER LEVEL OF TAXATION OF LATE PRESIDENT CLINTON HAS SPENT A LOT OF TIME CLAIMING THAT THE ECONOMIC PACKAGE WILL LOWER INTEREST RATES AND INCREASE SAVINGS AND INVESTMENT HE HAS ARGUED THAT REDUCING THE DEFICIT WILL LOWER INTEREST RATES AND SPUR ECONOMIC GROWTH BUT IN FACT THERE IS NO DIRECT RELATIONSHIP BETWEEN FEDERAL BUDGET DEFICITS AND INTEREST RATES IF ANYTHING THERE IS AN INVERSE RELATIONSHIP IN EACH OF THE POSTWAR RECESSIONS THE FEDERAL BUDGET DEFICIT ROSE AS TAX REVENUES SLOWED OR DECLINED AND SPENDING FOR UNEMPLOYMENT BENEFITS ROSE ASSOCIATED WITH EACH DEFICIT AND RECESSION WAS A DECLINE IN INTEREST RATES CONVERSELY ECONOMIC EXPANSIONS TEND TO BE ASSOCIATED WITH SMALLER DEFICITS AND RISING INTEREST RATES TOWARD THE END OF THE CYCLE THERE ARE A MULTITUDE OF VARIABLES THAT INFLUENCE INTEREST RATES A STATIC MODEL ASSUMES NO LINKAGE OR CHANGE OF THESE VARIABLES AND THEREFORE PROJECTS A DECLINE IN INTEREST RATES IF THE DEFICIT SHRINKS THE ALLEGED RELATIONSHIP BETWEEN DEFICITS AND INTEREST RATES DOES NOT MEET THE HISTORICAL TEST THE ADMINISTRATION'S CLAIM THAT HIGHER TAXES WILL INCREASE PRIVATE SAVINGS AND INVESTMENT WE MUST SACRIFICE APPEARS PARTICULARLY FLAWED INCREASED TAXES MUST BE PAID FOR OUT OF EITHER REDUCED CONSUMPTION OR THE REDUCTION OF SAVINGS OR ASSETS NO TOOTH FAIRY EITHER WAY THE ECONOMY IS HURT IN AN INTERDEPENDENT ECONOMY DECLINES IN CONSUMPTION SAVINGS OR INVESTMENT BY ONE SECTOR WILL HAVE AN IMPACT AT LEAST AT THE MARGIN ON THE WHOLE ECONOMY HIGHER TAX PAYMENTS DO NOT COME FREE FROM THE TOOTH FAIRY THERE IS A RELATIVELY PAINLESS WAY TO REDUCE THE DEFICIT WITHOUT HARMING THE ECONOMY THROUGH TAX INCREASES IT IS ILLUSTRATED IN THE THIRD CHART ON THIS PAGE WHICH WAS PREPARED BY THE COUNCIL OF ECONOMIC ADVISERS AND THE OFFICE OF MANAGEMENT AND BUDGET TOWARD THE END OF THE BUSH ADMINISTRATION IT IS INTERESTING TO NOTE THAT THE PROJECTION OF TAX RECEIPTS AS A PERCENTAGE OF GDP IS A FLAT 18519 TO THE YEAR 2030 APPARENTLY THE PRIOR ADMINISTRATION FOR ALL ITS FLAWS HAD SOME ADHERENTS OF THE 19 ARGUMENT THE CHART SHOWS THAT IF WE LIMIT THE INCREASE IN SPENDING ON ALL MANDATORY PROGRAMS BUT SOCIAL SECURITY WE COULD BALANCE THE BUDGET IN LESS THAN 10 YEARS THE TRICK IS TO LIMIT GROWTH IN SUCH PROGRAMS AS MEDICARE AND MEDICAID TO THE PERCENTAGE INCREASE IN THE BENEFICIARY POPULATION PLUS INFLATION THE CLINTON PACKAGE IS FLAWED BECAUSE IT IS A SOCIAL RATHER THAN AN ECONOMIC PROGRAM IT IS AN ATTEMPT TO REALLOCATE INCOME WITHOUT ACKNOWLEDGING HOW THE PRODUCTION OF INCOME IS ACHIEVED MR HAUSER IS PRESIDENT OF WENTWORTH HAUSER AND VIOLICH A SAN FRANCISCO INVESTMENT COUNSELING FIRM AND ON THE BOARD OF OVERSEERS OF THE HOOVER INSTITUTION 9308060104 930806 SHELL BRITISH PETROLEUM POST 2NDPERIOD NET ANGLO/DUTCH CONCERN FALLS SHORT OF EXPECTATIONS BRITISH COMPANY EXCELS BY BHUSHAN BAHREE STAFF REPORTER OF THE WALL STREET JOURNAL ROYAL DUTCH/SHELL GROUP AND BRITISH PETROLEUM CO EUROPE'S TWO INTERNATIONAL OIL GIANTS REPORTED SECONDQUARTER RESULTS THAT SURPRISED MARKETS SHELL FAILED TO MEET THE HOPES OF THOSE WHO HAD BECOME USED TO THE ANGLO/DUTCH GROUP'S HABIT OF EXCEEDING THEM SOON AFTER BP REPORTED BETTERTHANEXPECTED RESULTS THE MORE SO BECAUSE SOME OF THE IMPROVEMENT CAME FROM SUCH UNANTICIPATED AREAS AS REFINING AND MARKETING SHELL'S EARNINGS ON AN ESTIMATED CURRENT COSTOFSUPPLY BASIS ROSE 20 TO 619 MILLION 9282 MILLION IN THE SECOND QUARTER FROM 516 MILLION A YEAR EARLIER ON A HISTORIC COST BASIS NET INCOME FELL 6 TO 575 MILLION FROM 611 MILLION BP REPORTED PROFIT ON A REPLACEMENT COST BASIS AND AFTER EXCEPTIONAL ITEMS OF 261 MILLION FOR THE SECOND QUARTER COMPARED WITH A LOSS OF 812 MILLION IN THE 1992 PERIOD HISTORICAL COST PROFIT OF 182 MILLION IN THE LATEST QUARTER COMPARED WITH A LOSS OF 650 MILLION A YEAR EARLIER YESTERDAY SHELL TRANSPORT AND TRADING SHARES ENDED 9 1/2 PENCE LOWER AT 633 PENCE ON THE LONDON STOCK EXCHANGE ROYAL DUTCH PETROLEUM FELL 210 GUILDERS 109 TO 18120 GUILDERS ON THE AMSTERDAM EXCHANGE BP SHARES ROSE 2 1/2 PENCE TO 306 PENCE ON THE LONDON EXCHANGE SHELL TOOK RESTRUCTURING CHARGE OF 183 MILLION IN THE SECOND QUARTER AND REPORTED 141 MILLION IN CURRENCY LOSSES OF THE TOTAL SHELL CHARGED 112 MILLION FOR RESTRUCTURING ITS CHEMICAL OPERATIONS WHICH SHOWED A LOSS OF 151 MILLION IN THE SECOND QUARTER ON A CURRENT COST BASIS WIDER THAN THE LOSS OF 11 MILLION A YEAR EARLIER WITHIN THIS CHEMICALS OPERATIONS IN THE US SHOWED EARNINGS OF 16 MILLION UP FROM 5 MILLION A YEAR EARLIER SHELL ALSO CHARGED 71 MILLION FOR RESTRUCTURING ITS DOWNSTREAM OR REFINING AND MARKETING OPERATIONS ELIZABETH BUTLER AN ANALYST AT PANMURE GORDON & CO A SUBSIDIARY OF NATIONSBANK CORP OF CHARLOTTE NC SAID THAT WHILE SHE WAS PLEASED ABOUT SHELL'S RESTRUCTURING FIGURES SHE REMAINED GLOOMY ABOUT THE OIL SECTOR AND HAD PUT A HOLD RECOMMENDATION ON BOTH SHELL AND BP WE COULD BE LOOKING AT 13 A BARREL NORTH SEA BRENT OIL SHE SAID VOICING CONCERN ABOUT THE IMPACT ON THE UPSTREAM OR EXPLORATION AND PRODUCTION OPERATIONS OF OIL COMPANIES ALAN MARSHALL AN ANALYST AT SWISS BANK CORP IN LONDON SAID I DON'T LIKE OIL PRICES WHERE THEY ARE CRUDE OIL PRICES ARE WEAK COMPETITION IN THE OIL PRODUCTS MARKETS IS INTENSE AND CHEMICALS OPERATIONS OFTEN SHOW LOSSES ECONOMIC IMPROVEMENT IN MAJOR MARKETS IS STILL NOT IN SIGHT CONSEQUENTLY OIL COMPANIES HAVE BEEN CUTTING COSTS TO IMPROVE PROFITABILITY THE MARKET IS VERY COMPETITIVE AND A HARD TASKMASTER SAID DAVID SIMON BP'S CHIEF EXECUTIVE IN A PHONE INTERVIEW MR SIMON HAS BEEN INSTRUMENTAL IN TURNING BP AROUND IN THIS HOSTILE ENVIRONMENT BP FOCUSED ON ITS VERY GOOD ASSET BASE SELLING WHAT DIDN'T FIT HE SAID WHILE MR SIMON DECLINED TO COMMENT ON THE LEVEL OF OIL PRICES AT WHICH BP'S OPERATIONS START SHOWING A PROFIT ANALYSTS WHO ATTENDED A MEETING WITH BP OFFICIALS SAID THE COMPANY WAS TAKING A REALISTIC VIEW OF OIL PRICES BP IS PREPARED TO BE PROFITABLE EVEN IF BRENT OIL PRICES FALL TO 15 A BARREL THEY SAID THOUGH THIS WAS NEITHER A PRICE FORECAST NOR THE BREAKEVEN LEVEL WHICH ISN'T KNOWN YESTERDAY BRENT OIL WAS TRADING AT AROUND THE 1660 LEVEL LONDON ANALYSTS LARS REIERSON OF MORGAN STANLEY INTERNATIONAL AND PHILIP MORGAN OF PARIBAS WERE AMONG THOSE WHO ACKNOWLEDGED THE WIDESPREAD EXPECTATION THAT SHELL COULD PRODUCE STUNNING RESULTS REGARDLESS OF MARKET CONDITIONS PEOPLE THINK SHELL CAN WALK ON WATER ALL THE TIME MS BUTLER SAID AMONG THE DISSENTERS WERE GORDON GRAY AN ANALYST AT SALOMON BROTHERS IN LONDON AND MR MARSHALL AT SWISS BANK STILL SHELL SEEMED TO BE TACKLING THE PROBLEMS MR GRAY ADDED EARNINGS BREAKDOWN SHELL'S EARNINGS ON A HISTORICAL COST BASIS FROM EXPLORATION AND PRODUCTION ROSE 17 TO 408 MILLION IN THE LATEST QUARTER FROM 348 MILLION A YEAR EARLIER EARNINGS FROM MANUFACTURING MARINE AND MARKETING ACTIVITIES ON THE SAME BASIS ROSE 25 TO 463 MILLION FROM 370 MILLION LOSSES FROM CHEMICALS OPERATIONS WIDENED TO 151 MILLION FROM 19 MILLION A YEAR EARLIER SHELL'S NET ON A HISTORICAL COST BASIS ROSE 10 IN THE FIRST HALF TO 152 BILLION FROM 138 BILLION A YEAR EARLIER ON A CURRENT COST BASIS EARNINGS ROSE 15 TO 159 BILLION FROM 138 BILLION SALES ROSE 19 TO 2059 BILLION IN THE SECOND QUARTER FROM 1728 BILLION A YEAR EARLIER FIRST HALF SALES ROSE 20 TO 414 BILLION FROM 344 BILLION BP REPORTED REPLACEMENT COST OPERATING PROFIT OF 581 MILLION FOR THE SECOND QUARTER UP FROM 385 MILLION A YEAR EARLIER FIRSTHALF OPERATING PROFIT ROSE TO 117 BILLION FROM 808 MILLION OPERATING PROFIT FROM EXPLORATION AND PRODUCTION ACTIVITIES ROSE TO 474 MILLION IN THE SECOND QUARTER OF 1993 FROM 356 MILLION A YEAR EARLIER OPERATING PROFIT FROM REFINING AND MARKETING ROSE TO 197 MILLION IN THE SECOND QUARTER FROM 59 MILLION A YEAR EARLIER BP POSTED FIRSTHALF INCOME ON A REPLACEMENT COST BASIS AND AFTER EXCEPTIONAL ITEMS OF 510 MILLION COMPARED WITH A LOSS OF 717 MILLION A YEAR EARLIER ON A HISTORICAL COST BASIS FIRSTHALF INCOME TOTALED 507 MILLION CONTRASTING WITH A LOSS OF 711 MILLION A YEAR EARLIER 9308060103 930806 MEDICINE FDA TO ASSESS DRUG TO TREAT CYSTIC FIBROSIS BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL SOUTH SAN FRANCISCO ROB DRESING SINGS HIS WAY TOWARD A CAREER IN ROCK MUSIC JENNIFER PUZIO RAISES GOATS TO EXHIBIT IN 4H CLUB SHOWS KIMBERLY KIRKLAND IS A HOMEMAKER AND HORSEWOMAN EACH IS DEFYING A GENETIC DEATH SENTENCE CYSTIC FIBROSIS HOPING FOR BETTER TREATMENTS THESE YOUNG ADULTS WILL BE WATCHING MONDAY AS GENENTECH INC GOES BEFORE A PANEL OF THE FOOD AND DRUG ADMINISTRATION TO SEEK MARKET APPROVAL OF ITS NEW DRUG DNASE WHICH TREATS THE MOST DEBILITATING SYMPTOM OF CYSTIC FIBROSIS IF THE PANEL RECOMMENDS APPROVAL THE FDA IS LIKELY TO CLEAR THE DRUG WITHIN A YEAR DNASE ALONG WITH CHIRON CORP'S BETASERON WHICH WILL BE USED TO TREAT MULTIPLE SCLEROSIS IS CONSIDERED BY ANALYSTS TO BE ONE OF THE TWO MOST IMPORTANT NEW DRUGS TO EMERGE FROM THE BIOTECHNOLOGY INDUSTRY THIS YEAR CYSTIC FIBROSIS IS THE LEADING FATAL GENETIC DISORDER IN THE US CURRENTLY AFFECTING ABOUT 30000 PEOPLE ITS TRADEMARK IS STUBBORN LUNG SECRETIONS THAT PATIENTS CAN'T CLEAR DESPITE STRENUOUS COUGHING WITHIN CLOGGED AIRWAYS DRUGRESISTANT INFECTIONS CAN FESTER INFLICTING PERMANENT LUNG DAMAGE THE AVERAGE LIFE EXPECTANCY OF THOSE WITH THE DISEASE IS 29 YEARS SCIENTISTS AT GENENTECH KNEW THAT THE CULPRIT IN SUCH VISCOUS LUNG SECRETIONS WAS DNA FROM WHITE BLOOD CELLS THAT SPILLED THEIR GENETIC MATERIAL WHILE FIGHTING INFECTIONS I REASONED THAT IF YOU PUT IN A NORMAL HUMAN ENZYME YOU COULD CHOP UP THE SECRETIONS SAYS STEVEN SHAK GENENTECH'S DIRECTOR OF PULMONARY RESEARCH HE CREATED A VERSION OF A NATURAL ENZYME TO CHOP UP THE DNA AND HELP LIQUEFY THE SECRETIONS CLEARING THE AIRWAYS GENENTECH NAMED THIS CHEMICAL SCISSORS DNASE IN EARLY STUDIES DAILY INHALATION OF DNASE IMPROVED PATIENTS' LUNG POWER BY AN AVERAGE OF 15 IN A LARGER SIXMONTH STUDY IN 968 PATIENTS THESE GAINS NARROWED TO 5 LUNG POWER IS DETERMINED BY HAVING THE PATIENT EXHALE AND MEASURING THE FORCE OF EXHALATION HOWEVER GENENTECH AND INDEPENDENT RESEARCHERS EMPHASIZE THAT THAT MEASUREMENT ALONE CAN'T FULLY EVALUATE THE DRUG'S EFFECTIVENESS THE COMPANY SAYS SUBJECTIVE FACTORS IMPROVED WITH PATIENTS REPORTING LESS SHORTNESS OF BREATH FEWER INFECTIONS LESS NEED FOR INTRAVENOUS ANTIBIOTICS AND AN AVERAGE OF ONE LESS DAY IN THE HOSPITAL OVER THE SIXMONTH TRIAL THE MAIN SIDE EFFECT WAS HOARSENESS RESEARCHER BONNIE RAMSEY OF THE UNIVERSITY OF WASHINGTON IN SEATTLE CAUTIONS THAT DNASE ISN'T GOING TO REPLACE ANY OF THE ROUTINE THERAPIES FOR CYSTIC FIBROSIS SUCH AS ANTIBIOTICS ASTHMA MEDICATIONS AND DAILY PHYSICAL THERAPY THAT INCLUDES CLAPPING PATIENTS ON THE BACK TO BREAK UP CONGESTION WE'RE TREATING SECONDARY EFFECTS HERE NOT THE PRIMARY CAUSE STILL DR RAMSEY BELIEVES THE IMPROVEMENT IN LUNG FUNCTION IS VERY VERY STRIKING TO SEE 5 TO 12 IMPROVEMENT IN HER PORTION OF THE STUDY GROUP AFTER SIX MONTHS OR 12 MONTHS IS QUITE SIGNIFICANT IN THIS ILLNESS IF GENENTECH GETS FDA CLEARANCE TO TREAT THE SYMPTOMS OF CYSTIC FIBROSIS IT MAY TRY TO SEEK EXPANDED USE OF THE DRUG FOR SEVERE BRONCHITIS WHICH WOULD BE A HUGE MARKET ALTHOUGH THE COMPANY HASN'T SET A PRICE ANALYSTS FORECAST AN ANNUAL PRICETAG OF 10000 A PATIENT WHICH COULD TRANSLATE INTO A 300 MILLION TO 495 MILLION MARKET BY 1998 ENROLLING HIS 26YEAROLD SON ROB IN THE TRIAL TOOK A LEAP OF FAITH BECAUSE VOLUNTEERS FACED A 5050 CHANCE OF BEING ASSIGNED TO THE CONTROL GROUP RECEIVING A PLACEBO ROB WAS VERY ANXIOUS TO PARTICIPATE MR DRESING SAYS BUT SUFFERED A LETDOWN IT WAS OBVIOUS IN A COUPLE WEEKS HE WAS ON PLACEBO ROB WASN'T FEELING ANY DIFFERENT AT THE STUDY'S END HOWEVER ALL VOLUNTEERS GOT THE OPTION OF TAKING DNASE IT'S BEEN REMARKABLE MR DRESING SAYS HIS SON REPORTED BETTER SLEEP LESS WRACKING COUGHS AND HE NO LONGER LOST HIS VOICE THIS VOCAL STAMINA HELPED HIM PERFORM IN ROCK RECORDING SESSIONS UNDER HIS STAGE NAME OF BIRDIE IN ST LOUIS KIMBERLY KIRKLAND SAYS SHE AND HER SISTER BOTH BEGAN LIFE WITH A GRIM DIAGNOSIS THE NURSE TOLD MY MOM WHEN WE WERE BORN WE WOULDN'T LIVE TO BE TEENAGERS NOW AT 34 MS KIRKLAND HAS ALREADY BEATEN THE ODDS A HOMEMAKER AND AVID HORSEWOMAN SHE SAYS SHE NOTICED MILDER COLDS ON DNASE AND HOPES TO MAKE THE DRUG PART OF HER LUNGCARE REGIMEN AS SOON AS THEY RELEASE IT TO THE PUBLIC MY DOCTOR'S GOING TO PUT ME ON IT SAYS MS KIRKLAND WHOSE SISTER DIDN'T ENTER THE DNASE STUDY IN SNOHOMISH WASH 13YEAROLD 4H CLUB MEMBER JENNIFER PUZIO TOLD HER MOTHER SHE FELT HER LUNGS OPENED UP ON DNASE HER MOTHER KIM DETECTS LESS BRONCHITIS AND COUGHING SAYS MRS PUZIO I'M EXCITED BECAUSE THERE'S HOPE ULTIMATELY MANY SCIENTISTS BELIEVE THE BEST PROSPECTS FOR CURING CYSTIC FIBROSIS WILL COME THROUGH GENE THERAPY ALREADY RESEARCHERS AT THE NATIONAL INSTITUTES OF HEALTH LED BY RONALD CRYSTAL INTRODUCED A CORRECTED COPY OF THE MUTANT CYSTIC FIBROSIS GENE INTO SEVERAL PATIENTS THOUGH IT'S TOO EARLY TO KNOW RESULTS COMPANIES ARE DEVELOPING GENE THERAPY TOOLS TOO INCLUDING GENENTECH AND ITS PARTNER GENVEC OF MONTGOMERY COUNTY MD AND A CLOSELY HELD STARTUP MEGABIOS CORP OF SAN FRANCISCO 9308060102 930806 MARKETING & MEDIA US AND CANADA AGREE TO RESOLVE BEER TRADE FIGHT BY ROSANNA TAMBURRI AND ASRA Q NOMANI STAFF REPORTERS OF THE WALL STREET JOURNAL THE US AND CANADA AGREED TO SETTLE A PROTRACTED BEER TRADE DISPUTE THAT HAD SOURED TRADE RELATIONS BETWEEN THE TWO COUNTRIES THE SETTLEMENT LARGELY RESOLVES A DISPUTE OVER RESTRICTIONS IMPOSED ON US AND OTHER FOREIGN BEER BY CANADIAN PROVINCES PRINCIPALLY ONTARIO AND GIVES US BEER GREATER ACCESS TO RETAIL OUTLETS IN CANADA ONTARIO ALSO WILL REDUCE ITS MINIMUM PRICES AND OTHER FEES THAT US BREWERS CLAIM MAKE THEIR BEERS LESS COMPETITIVE AS PART OF THE SETTLEMENT THE TWO COUNTRIES AGREED TO SCRAP PUNITIVE DUTIES IMPOSED LAST YEAR ON EACH OTHER'S BEER THE AGREEMENT ANNOUNCED YESTERDAY BY US TRADE REPRESENTATIVE MICKEY KANTOR AND CANADIAN TRADE MINISTER TOM HOCKIN ALLOWS ONTARIO TO KEEP AN ENVIRONMENT TAX OF 10 CANADIAN CENTS 76 US CENTS ON EACH ALUMINUM CAN OF BEER A MAJOR IRRITANT FOR US BREWERS MOST US BEER IMPORTED INTO ONTARIO IS SOLD IN CANS WHILE CANADIAN BEER IS SOLD MAINLY IN BOTTLES AMONG OTHER CONCESSIONS ONTARIO AGREED TO LOWER THE MINIMUM PRICE OF A 24BOTTLE CASE OF BEER BY TWO CANADIAN DOLLARS US155 CURRENTLY BEER CAN BE SOLD THERE FOR NO LESS THAN C2250 A CASE ONTARIO ALSO AGREED TO REDUCE ITS DISTRIBUTION CHARGES FOR FOREIGN BEER BRANDS THE AGREEMENT AVERTS A BEER WAR MR HOCKIN SAID DURING A BREAK FROM THE MINISTERIAL TALKS IN WASHINGTON ON THE NORTH AMERICAN FREE TRADE AGREEMENT THE BEER DISPUTE WASN'T A MAJOR ISSUE IN THE BROADER NAFTA TALKS WHICH ARE DESIGNED TO DISMANTLE TRADE BARRIERS BETWEEN THE US MEXICO AND CANADA BUT SETTLING THE CONTROVERSY CLEARS THE AIR BETWEEN THE US AND CANADA THE BEER TRADE MATTER HAS ARISEN IN HIGHLEVEL TALKS CANADIAN PRIME MINISTER KIM CAMPBELL RAISED THE ISSUE WITH PRESIDENT CLINTON IN TOKYO DURING THE GROUP OF SEVEN SUMMIT LAST MONTH DETROITBASED STROH BREWERY CO ONE OF THE US BREWERS THAT LED THE FIGHT FOR GREATER ACCESS TO CANADA'S BEER MARKET GAVE THE ACCORD A TEPID REVIEW THE PACT IS REASONABLE SAID CHRIS SORTWELL A STROH VICE PRESIDENT THE REAL ISSUE IS GOING TO BE HOW IT GETS IMPLEMENTED THE AGREEMENT ALLOWS OTHER PROVINCES TO INTRODUCE MINIMUM PRICE RULES ENVIRONMENTAL TAXES AND OTHER MEASURES SIMILAR TO THOSE SECURED BY ONTARIO IN RETURN THE US HAS THE RIGHT TO TERMINATE THE AGREEMENT WITHIN 30 DAYS IF IT CONSIDERS ANY NEW MOVES BY THE PROVINCES DISCRIMINATORY CANADIAN BEER EXPORTS ACCOUNT FOR ABOUT 1 OF US SALES US BREWERS SUPPLY ABOUT 2 OF THE CANADIAN BEER MARKET US BREWERS FOR YEARS HAVE FOUGHT FOR GREATER ACCESS TO THE CANADIAN MARKET CANADA AND THE US REACHED AN AGREEMENT LAST YEAR THAT LARGELY RESOLVED THE TRADE SPAT BUT THE DEAL FELL APART WHEN ONTARIO RAISED ITS WAREHOUSING CHARGES FOR FOREIGN BEER AND INTRODUCED THE ENVIRONMENTAL LEVY THE US COUNTERED WITH A US3 IMPORT DUTY ON EACH 24BOTTLE CASE OF BEER FROM ONTARIO CANADA IMPOSED SIMILAR DUTIES ON SOME US IMPORTS 9308060101 930806 US WOULD PROVIDE MOST FUNDS FOR BANK PROPOSED TO CLEAN UP MEXICAN BORDER BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US WOULD PROVIDE MOST OF THE CAPITAL FOR A PROPOSED USMEXICO DEVELOPMENT BANK TO PAY FOR ENVIRONMENTAL CLEANUP ALONG THE TWO COUNTRIES' BORDER EVEN THOUGH MOST OF THE PROJECTS WOULD BE IN MEXICO UNDER A PLAN CLINTON ADMINISTRATION OFFICIALS ARE DISCUSSING WITH MEXICO WASHINGTON WOULD PROVIDE 85 OF A PROPOSED 525 MILLION IN STARTUP MONEY FOR THE BANK AND GUARANTEE MOST OF THE REMAINING 45 BILLION IT WOULD RAISE OVER FIVE YEARS AS A RESULT OF ITS CONTRIBUTION THE US WOULD HAVE EFFECTIVE CONTROL OVER THE 5 BILLION BANK THE BANK WOULD LEND TO SPECIFIC PROJECTS WHICH ALSO WOULD RAISE THEIR OWN MONEY THROUGH USER FEES AND THEIR OWN BONDS BECAUSE VIRTUALLY ALL OF THE CLEANUP PROJECTS WOULD BE ON THE MEXICAN SIDE OF THE BORDER THOUGH MEXICO WOULD GUARANTEE REPAYMENT OF THE BULK OF THE PROJECTS' BONDS US OFFICIALS SAY THAT THE US WOULD BENEFIT FROM THE PROJECTS BECAUSE MUCH OF THE POLLUTION ON THE US SIDE OF THE BORDER ORIGINATES IN MEXICO THE BANK WOULD BE ONE OF TWO INSTITUTIONS THAT THE US RECOMMENDS CREATING TO DEAL WITH ENVIRONMENTAL PROBLEMS ALONG THE TWO COUNTRIES' BORDER THE OTHER A BINATIONAL BORDER AUTHORITY WOULD APPROVE AND OVERSEE THE ENVIRONMENTAL PROJECTS IN THE BORDER REGION THE AUTHORITY'S TERRITORY WOULD BE DEFINED AS THE BORDER AREA'S WATERSHED ECOSYSTEMS REGARDLESS OF POLITICAL BOUNDARY THE PROPOSALS COME AS TRADE OFFICIALS FROM THE US MEXICO AND CANADA CONTINUE DISCUSSIONS ON LABOR AND ENVIRONMENTAL SIDEAGREEMENTS TO THE NORTH AMERICAN FREE TRADE AGREEMENT BORDER CLEANUP FUNDING IS A CENTRAL PART OF THOSE TALKS ALTHOUGH CANADA HAS SAID IT DOESN'T WANT A FORMAL ROLE IN THE EFFORT THE TALKS ARE AT AN IMPASSE OVER US DEMANDS THAT IT BE ABLE TO IMPOSE TRADE SANCTIONS IF AN ARBITRATION PANEL FINDS THAT MEXICO OR CANADA AREN'T ENFORCING THEIR ENVIRONMENTAL OR LABOR LAWS THE US HAS DISCUSSED A COMPROMISE PLAN CALLING FOR FINES ON GOVERNMENTS FOR NONENFORCEMENT ONLY IF NAFTA GOVERNMENTS DIDN'T PAY THE FINES COULD SANCTIONS BE IMPOSED BUT HOUSE MAJORITY LEADER RICHARD GEPHARDT D MO AND SEN MAX BAUCUS D MONT WHO IS CHAIRMAN OF THE SENATE FINANCE COMMITTEE'S INTERNATIONAL TRADE PANEL WROTE US TRADE REPRESENTATIVE MICKEY KANTOR ON TUESDAY THAT SUCH A COMPROMISE WOULD BE UNACCEPTABLE TO THEM UNFORTUNATELY THE PROPOSALS APPEAR TO BE AIMED AT ACCOMMODATING THE INTERESTS OF THOSE IN THE BUSINESS COMMUNITY AND OUR TRADING PARTNERS WHO BELIEVE THERE IS NOTHING WRONG WITH THE STATUS QUO THEY WROTE MR KANTOR THE SUPPORT OF BOTH DEMOCRATS IS CRUCIAL FOR NAFTA TO PASS CONGRESS WITH REGARD TO THE SEPARATE ENVIRONMENTAL FUNDING PLAN A NAFTA WORKING GROUP OF THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL ON MONDAY ENDORSED THE PROPOSALS THAT ARE BEING NEGOTIATED WITH MEXICO US OFFICIALS CAUTION THAT THE SHARE OF FUNDS CONTRIBUTED BY EACH COUNTRY COULD CHANGE DURING NEGOTIATIONS AS COULD OTHER SPECIFICS BUT THE PLAN PREPARED BY THE TREASURY DEPARTMENT GIVES THE MOST DETAILED LOOK AT HOW THE US PROPOSES TO PROCEED WITH BORDER CLEANUP THE BORDER DEVELOPMENT BANK WHICH WOULD BE HOUSED IN THE INTERAMERICAN DEVELOPMENT BANK IN WASHINGTON WOULD PROVIDE LOANS AND CREDITGUARANTEES TO PROJECTS APPROVED BY THE BORDER AUTHORITY OF THE 525 MILLION IN SEED MONEY RAISED OVER FIVE YEARS THE US WOULD CONTRIBUTE 445 MILLION THE 85 US SHARE WOULD PRACTICALLY ASSURE THAT THE BANK COULD OBTAIN A TRIPLEA RATING FOR THE BONDS IT WOULD ISSUE ACCORDING TO A COPY OF THE PLAN OBTAINED BY THE WALL STREET JOURNAL THE REMAINDER OF THE FUNDS WOULD COME IN THE FORM OF SOCALLED CALLABLE CAPITAL WHICH WOULD BE GUARANTEED MAINLY BY THE US GOVERNMENT US OFFICIALS SAID THAT MEXICO MAY WANT TO CONTRIBUTE MORE CAPITAL IN ORDER TO GET A GREATER STAKE IN THE DEVELOPMENT BANK IN TURN MEXICO MAY ASK THE US TO PICK UP MORE OF THE TAB FOR SPECIFIC ENVIRONMENTAL PROJECTS THE DRAFT OF THE PLAN SAYS ITS OBJECTIVE IS TO HELP GET CONGRESSIONAL SUPPORT FOR NAFTA PASSAGE BY CREATING MECHANISMS TO ENSURE THAT ENVIRONMENTAL PROBLEMS ALONG THE USMEXICO BORDER ARE ADDRESSED BUT IT MAY NOT GO FAR ENOUGH TO SATISFY NAFTA CRITICS REP GEPHARDT HAS SAID HE WANTS TO GUARANTEE NAFTA ENVIRONMENTAL FUNDING BY IMPOSING A TAX ON BORDER TRADE THE ADMINISTRATION SAYS THAT FEDERAL SPENDING OF 150 MILLION ANNUALLY WOULD COME FROM GENERAL APPROPRIATED FUNDS MEANWHILE REP ESTEBAN TORRES D CALIF A NAFTA OPPONENT SAID HE WOULD SUPPORT THE PACT IF THE ADMINISTRATION BACKS HIS IDEA FOR A NORTH AMERICAN DEVELOPMENT BANK THAT WOULD COVER SPENDING FOR ROADS BRIDGES AND OTHER INFRASTRUCTURE NOT ONLY ENVIRONMENTAL PROJECTS HE ALSO WOULD ALLOW THE BANK TO FINANCE PROJECTS FURTHER FROM THE BORDER THE ADMINISTRATION PLAN WOULDN'T FUND PROJECTS IN MR TORRES'S DISTRICT WHICH IS 120 MILES NORTH OF MEXICO I'M REALLY DISAPPOINTED IN THEIR PRESENT POSITION SAID REP TORRES IT DOESN'T CREATE JOBS AWAY FROM THE BORDER THIS IS ARGUABLY HALF A LOAF ADDED CHARLES KAMASAKI A VICE PRESIDENT AT THE NATIONAL COUNCIL OF LA RAZA A BIG HISPANIC GROUP THAT BACKS THE TORRES PLAN BUT HALF A LOAF GETS YOU NO VOTES A FULL LOAF GETS YOU A LOT OF LIBERAL AND CENTRIST DEMOCRATS 9308060100 930806 PEOPLE PATTERNS BY DIANE CRISPELL OF AMERICAN DEMOGRAPHICS MAGAZINE MORE THAN ONETHIRD OF US HOUSEHOLDS HAVE NO DISCRETIONARY INCOME NEW STRATEGIST AN ITHACA NY CONSULTANT AND PUBLISHER OF REFERENCE BOOKS ON DEMOGRAPHICS ESTIMATES THAT IN 1992 ONLY 64 OF HOUSEHOLDS HAD INCOME LEFT AFTER PAYING FOR THE NECESSITIES OF LIFE INCLUDING FOOD CLOTHING HOUSING AND TAXES THE AVERAGE AVAILABLE IN THOSE HOUSEHOLDS WAS 11300 AND THE AVERAGE PER PERSON IN THOSE HOUSEHOLDS WAS 4300 AMONG WOMEN HEADING FAMILIES BY THEMSELVES ONLY 40 OF HOUSEHOLDS HAD DISCRETIONARY INCOME WHEN THEY HAD SUCH INCOME THE AMOUNT AVERAGED 7200 A HOUSEHOLD THE LOWEST OF ANY CATEGORY OR 2400 A PERSON MEN LIVING ALONE WERE THE MOST WELL OFF 86 OF THEIR HOUSEHOLDS HAD DISCRETIONARY INCOME AND THEY HAD THE MOST SUCH INCOME 11600 PER HOUSEHOLD MARRIED COUPLES WHO HAD NO CHILDREN UNDER 18 LIVING WITH THEM WERE THE NEXT MOST LIKELY TO HAVE EXTRA MONEY AT 77 OF THEIR HOUSEHOLDS BUT THEIR AVERAGE HOUSEHOLD TOTAL OF 13900 AMOUNTED TO JUST 5700 A PERSON BECAUSE SOME HAD ADULT CHILDREN LIVING AT HOME WOMEN WHO LIVE ALONE WERE THE THIRD MOST LIKELY GROUP TO HAVE DISCRETIONARY INCOME AT 72 OF THEIR HOUSEHOLDS THEY HAD AN AVERAGE OF 8300 LEFT AFTER NECESSITIES MARRIED COUPLES WITH ONE CHILD UNDER 18 AT HOME WERE SOMEWHAT MORE LIKELY THAN AVERAGE TO HAVE DISCRETIONARY INCOME AT 70 FOR COUPLES WITH TWO CHILDREN THE FIGURE PLUNGED TO 35 OF HOUSEHOLDS AMONG THOSE WHO HAD ANY DISCRETIONARY INCOME COUPLES WITH TWO CHILDREN HAD A BIT MORE THAN THOSE WITH ONE CHILD 10200 VS 9800 BUT THE PERCAPITA AMOUNT WAS SMALLER HAVING TWO CHILDREN IS INCREASINGLY THE IDEAL AMONG AMERICAN WOMEN IN A CENSUS BUREAU REPORT ON WOMEN'S FERTILITY 50 OF CHILDLESS WOMEN AGES 18 TO 34 SURVEYED LAST YEAR SAID THEY EXPECTED TO HAVE TWO CHILDREN AMONG WOMEN WITH ONE CHILD 42 EXPECTED TO HAVE ONE MORE AND AMONG THOSE WHO ALREADY HAVE TWO CHILDREN 81 SAY THEY WILL STOP THERE SLIGHTLY MORE WOMEN HAVE SETTLED IN RECENT YEARS ON TWO CHILDREN AS THEIR PREFERENCE IN 1982 THE SHARE OF CHILDLESS WOMEN WHO EXPECTED TO HAVE TWO KIDS WAS 46 FOUR POINTS LOWER THAN LAST YEAR THE PROPORTION PLANNING TO REMAIN CHILDLESS DROPPED TO 22 IN 1992 FROM 26 A DECADE EARLIER THE SHARE EXPECTING TO HAVE ONLY ONE CHILD REMAINED STABLE AT 11 AS DID THE SHARE PLANNING THREE OR MORE KIDS AT 17 PLANS TO HAVE LARGER FAMILIES DON'T DIMINISH WITH THE ARRIVAL OF THE FIRST BABY AMONG WOMEN WITH ONE CHILD IN 1992 17 STILL PLANNED TO HAVE AT LEAST TWO MORE AMONG THOSE WITH TWO CHILDREN 19 PLANNED AT LEAST ONE MORE SOME WOMEN SAY THEY DON'T KNOW HOW MANY CHILDREN THEY EXPECT TO HAVE TWENTYONE PERCENT OF NEVERMARRIED WOMEN AGES 18 TO 34 ARE UNCERTAIN ABOUT THEIR CHILDBEARING PLANS COMPARED WITH 11 OF MARRIED WOMEN YOUNG WOMEN ARE MORE UNCERTAIN ABOUT THEIR PLANS FOR CHILDREN THAN THEY USED TO BE PROBABLY BECAUSE FEWER OF THEM ARE MARRIED DESPITE THIS SAYS AMARA BACHU THE REPORT'S AUTHOR THE AVERAGE WOMAN WANTS OR HAS TWO CHILDREN OVERALL THEIR EXPECTATIONS ARE MATCHING REALITY SHE SAYS MS BACHU ALSO NOTES THAT THE PROPORTION OF YOUNG WOMEN WHO EXPECT TO REMAIN CHILDLESS FELL TO 9 IN 1992 FROM 12 IN 1982 BUT THE SHARE WHO END UP CHILDLESS MAY BE SOMEWHAT HIGHER THAN THESE FIGURES INDICATE SHE SAYS BECAUSE SOME WOMEN DON'T FIND A PARTNER OR WAIT SO LONG THAT THEY CAN'T PHYSICALLY HAVE CHILDREN THE OFFICE OF MANAGEMENT AND BUDGET HAS REVISED A REVISION OF METROPOLITAN CLASSIFICATIONS IN DECEMBER THE OMB ISSUED A LISTING OF METROPOLITAN AREAS BASED ON POPULATION COUNTS FROM THE 1990 CENSUS AT THAT TIME A NUMBER OF LOCALES AROUND NEW YORK CITY AND BOSTON WERE MELDED INTO SINGLE METROPOLITAN STATISTICAL AREAS BUT IN JUNE MOST OF THOSE AREAS REGAINED THEIR INDEPENDENT STATUS THE REESTABLISHED METRO AREAS AROUND BOSTON ARE IN MASSACHUSETTS FITCHBURGLEOMINSTER LAWRENCE LOWELL NEW BEDFORD AND WORCESTER MANCHESTER NH AND PORTSMOUTH NHROCHESTER MAINE IN GREATER NEW YORK THE RESTORED AREAS INCLUDE IN NEW JERSEY BERGENPASSAIC COUNTIES JERSEY CITY MIDDLESEXSOMERSETHUNTERDON COUNTIES MONMOUTHOCEAN COUNTIES AND NEWARK AND IN NEW YORK NASSAUSUFFOLK COUNTIES BOSTON AND NEW YORK CITY REMAIN METROPOLITAN AREAS THOUGH MUCH SMALLER THAN THEY WERE FOR A FEW MONTHS METROPOLITAN STATUS REPRESENTS MORE THAN A BUREAUCRATIC FORMALITY SOME FEDERAL PROGRAMS DISTRIBUTE FUNDING BASED ON AVERAGE INCOME FOR AN ENTIRE METRO AREA POOR AREAS ABSORBED INTO AFFLUENT AREAS COULD END UP WITH LESS AID THE OMB WON'T COMMENT ON THE REASONS FOR THE LATEST CHANGES BUT THE COUNCIL OF PROFESSIONAL ASSOCIATIONS ON FEDERAL STATISTICS AN INDEPENDENT GROUP IN ARLINGTON VA SAYS THE LATEST REVISIONS BETTER REFLECT LOCAL PATTERNS YOUNG WORKERS ARE KNOWN FOR SWITCHING JOBS OFTEN BUT THE ELDERLY MAKE CHANGES TOO BUREAU OF LABOR STATISTICS DATA SHOW WORKERS AGE 65 OR OLDER HAVE BEEN IN THE SAME OCCUPATION FOR A MEDIAN OF 18 YEARS BUT THEY HAVE BEEN WITH THEIR CURRENT EMPLOYERS FOR A MEDIAN OF 11 YEARS VS 12 YEARS FOR THE 55TO64 AGE RANGE BUSINESSES WITH FEWER THAN 10 EMPLOYEES ACCOUNT FOR ALMOST 16 OF US JOBS ACCORDING TO 1991 DATA FROM THE THE CENSUS BUREAU THE MOUNTAIN STATES FROM MONTANA TO ARIZONA HAVE A HIGHER SHARE THAN AVERAGE OF EMPLOYMENT IN SMALL BUSINESS NEARLY 18 9308060099 930806 BUSINESS BRIEF COOPERS & LYBRAND HARBRIDGE HOUSE IS BOUGHT BUT PRICE IS NOT DISCLOSED COOPERS & LYBRAND NEW YORK SAID IT ACQUIRED HARBRIDGE HOUSE AN INTERNATIONAL CONSULTING CONCERN THAT SPECIALIZES IN HUMAN RESOURCE DEVELOPMENT ISSUES THE ACCOUNTING FIRM DECLINED TO DISCLOSE TERMS OF THE ACQUISITION WHICH IS ONE OF A SERIES OF RECENT PURCHASES MADE TO BROADEN ITS HUMAN RESOURCES DEVELOPMENT BUSINESS WITH OFFICES IN BOSTON CHICAGO NEW YORK LONDON AND WASHINGTON HARBRIDGE HAD REVENUE LAST YEAR OF 15 MILLION COOPERS & LYBRAND SAID 9308060097 930806 PAINEWEBBER TO BUY BACK STOCK NEW YORK PAINEWEBBER GROUP INC SAID ITS BOARD APPROVED THE REPURCHASE OF 2758632 SHARES OF PREFERRED STOCK FROM YASUDA MUTUAL LIFE INSURANCE CO FOR 2750 A SHARE OR A TOTAL OF 759 MILLION THE INVESTMENT BANKING FIRM SAID YASUDA CONTINUES TO HOLD FIVE MILLION SHARES OF ITS COMMON STOCK 9308060096 930806 COMMODITIES GOLD'S PLUNGE ACCELERATES IN SHARP ONEDAY SELLOFF BY JEFFREY TAYLOR AND NEIL BEHRMANN STAFF REPORTERS OF THE WALL STREET JOURNAL A BLITZ OF SELLING BY GOLD INVESTORS TURNED INTO THE BIGGEST SINGLEDAY ROUT IN PRECIOUSMETALS MARKETS SINCE THE PERSIAN GULF WAR OF 1991 AND PANICKY INVESTORS DIDN'T SPARE PLATINUM AND SILVER THE ACTIVELY TRADED OCTOBER PLATINUM CONTRACT FELL THE DAILY LIMIT OF 25 TO SETTLE AT 39460 AND SILVER FOR SEPTEMBER DELIVERY WAS DOWN 482 CENTS TO 47830 AN OUNCE IT WAS BRUTAL SAID DENISE GIORDANO DIRECTOR OF BULLION TRADING AT SWISS BANK CORP THERE WAS OPTIONRELATED SELLING MIDDLEEASTERN SELLING WAVES OF SELLING IT ALL CAME DOWN TO ONE DAY WHEN THE MARKET JUST DECIDED IT WASN'T GOING TO HOLD THESE HIGH PRICES ANY MORE YET DESPITE THE BLOODBATH FEW ANALYSTS WERE PREPARED TO DECLARE THAT GOLD'S FIVEMONTH UPWARD TREND IS FINISHED THEY NOTE THE POSSIBILITY OF CONTINUING CHAOS AMONG EUROPEAN CURRENCIES AND THE LIKELIHOOD OF A PICKUP IN INFLATION BOTH OF WHICH WOULD SUPPORT PRECIOUSMETALS PRICES GOLD STOCKS TOOK A POUNDING YESTERDAY AS THE DOW JONES PRECIOUSMETALS INDUSTRY GROUP OF SIX GOLD STOCKS FELL 1806 POINTS OR 59 TO CLOSE AT 28962 THE DAY'S BIGGEST LOSER WAS HECLA MINING CO DOWN 1 1/8 OR 8 TO 12875 A SHARE IN COMPOSITETRADING ON THE NEW YORK STOCK EXCHANGE BUT EVEN AS THE PRICES OF GOLD SHARES PLUNGED BARGAIN HUNTERS MOVED IN FOR INSTANCE IN NEWMONT MINING CORP AN ACTIVELY TRADED GOLD STOCK ON THE BIG BOARD THERE WERE AS MANY INSTITUTIONAL PURCHASES AS THERE WERE SALES SAID LASZLO BIRINYI OF BIRINYI & ASSOCIATES A MARKET RESEARCH FIRM THERE'S NO MASS EXODUS FROM THESE STOCKS MR BIRINYI SAID THAT'S SURPRISING GIVEN WHAT HAPPENED TO THE PRICE OF GOLD IT SHOWS THAT THERE ARE SOME PEOPLE WHO THINK GOLD STOCKS ARE CHEAP HERE THE STAGE FOR THE GOLDPRICE COLLAPSE WAS SET LAST WEEKEND WHEN EUROPEAN FINANCE MINISTERS AGREED TO LET THEIR CURRENCIES FLUCTUATE MORE FREELY AGAINST ONE ANOTHER THAT ELIMINATED THE MAJOR NEARTERM FUNDAMENTAL SUPPORT FOR THE MARKET SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH FEARS OF A COLLAPSE OF EUROPE'S EXCHANGE RATE MECHANISM WHICH BINDS EUROPE'S CURRENCIES TOGETHER HAD FUELED A SURGE IN GOLD PRICES THE WEEK BEFORE HE SAID EARLY YESTERDAY THERE WERE REPORTS OF HEAVY SALES OF GOLD BULLION BY CHINA IN FAR EAST AND LONDON MARKETS SELLING BY THE CENTRAL BANK OF BRAZIL AND AGGRESSIVE LIQUIDATION OF GOLD BY SWISS AND MIDDLEEASTERN INVESTOR SYNDICATES ADDED TO THE PRESSURE ON PRICES WHEN TRADING OPENED ON NEW YORK'S COMEX THE PRICE OF THE DECEMBER CONTRACT WAS 4 LOWER THEN CAME A MASSIVE TECHNICAL SELLING BLITZ BY COMMODITY FUNDS AND OTHERS IN WHICH GOLD PRICES FELL MORE THAN 15 AN OUNCE IN MINUTES MR O'NEILL SAID COMMODITY FUNDS ARE MANAGED POOLS OF INVESTORS' MONEY THAT TRADE ON THE BASIS OF MATHEMATICAL PROJECTIONS THEY SOLD THOUSANDS OF FUTURES CONTRACTS YESTERDAY AS PRICES PLUNGED THROUGH LEVELS THEY REGARDED AS SIGNIFICANT WE WATCHED DUMBFOUNDED SAID ONE LONDON BULLION DEALER WE COULDN'T QUOTE PRICES AND AT ONE STAGE THE DIFFERENCE BETWEEN BIDANDOFFER QUOTES WAS AS WIDE AS 5 ONE PERSISTENT RUMOR ON THE COMEX FLOOR HAD IT THAT GEORGE SOROS AN INVESTOR WHOSE MASSIVE PURCHASES OF GOLD HELPED TO SPAWN GOLD'S RALLY LAST SPRING WAS AMONG THE SELLERS A SPOKESMAN FOR MR SOROS DECLINED TO COMMENT IN SILVER FUTURES TRADING MEANWHILE REPORTS THAT THE GOVERNMENT OF INDIA HAD SOLD 20 TONS OF SILVER HASTENED THE DECLINE OF THE SEPTEMBER CONTRACT PRICE IN HONG KONG SPOT GOLD PRICES PLUNGED TO 387 AN OUNCE DOWN FROM A RECENT PEAK OF 41025 ON MONDAY SPOT SILVER SLID AS LOW AS 497 AN OUNCE FROM 525 BEFORE RALLYING SLIGHTLY TO 507 MASSIVE SPECULATIVE POSITIONS IN THE GOLD DERIVATIVES MARKET OF OPTIONS WARRANTS AND FUTURES CAUSED GOLD'S COLLAPSE IN THE PAST FEW DAYS SAID ALFRED SCHNEIDER A DIRECTOR IN CHARGE OF PRECIOUS METALS SALES AT SWISS BANK CORP IN ZURICH SWITZERLAND MR SCHNEIDER SAID HE FEARS GOLD PRICES MAY FALL FURTHER BEFORE BUYERS RETURN TO THE MARKET IN FORCE JEWELERS THE MAIN INDUSTRIAL USERS OF GOLD ARE ON THE SIDELINES THE WORLD GOLD COUNCIL WHICH PROMOTES GOLD ON BEHALF OF PRODUCERS REPORTED THAT JEWELRY DEMAND FOR GOLD FADED IN THE SECOND QUARTER AFTER PRICES ROSE 10 FROM FIRSTQUARTER LOWS TOTAL WORLD GOLD DEMAND FELL TO 575 METRIC TONS IN THE SECOND QUARTER FROM 700 METRIC TONS IN THE FIRST THE COUNCIL SAID ALTHOUGH THE CURRENT CORRECTION MAY CONTINUE THERE IS STILL REASON FOR LONGTERM BULLISH SENTIMENT IN PRECIOUS METALS ANALYSTS ASSERT PERSISTENTLY LOW US INTEREST RATES FOR INSTANCE ENCOURAGE INVESTORS TO BUY GOLD MR O'NEILL SAID YESTERDAY'S DECLINE DOESN'T MEAN THE WHOLE UPWARD TREND IS OVER MS GIORDANO AT SWISS BANK SAID I THINK THE MARKET'S STILL CONSTRUCTIVE AND HAS FOUND A BASE YET SHE CAUTIONED THAT HER OPINION WOULD QUICKLY CHANGE IF THE PRICE OF THE DECEMBER CONTRACT FELL LOWER THAN 365 AN OUNCE THAT'S A VERY IMPORTANT LEVEL MS GIORDANO SAID IF GOLD BREAKS THROUGH THAT LEVEL IT STARTS TO LOOK PRETTY BAD IN OTHER COMMODITY MARKETS YESTERDAY ENERGY CRUDE OIL AND PETROLEUM PRODUCT PRICES FELL IN LIGHT TRADING MARKET PLAYERS SAID THE SLUMP WAS CAUSED BY CONTINUED UNCERTAINTY OVER WHETHER THE UNITED NATIONS WILL TAKE AWAY ITS EMBARGO AGAINST IRAQ AND ALLOW THE COUNTRY TO SELL OIL TRADERS SAID THE PERCEPTION REMAINS THAT THERE IS AN OVERSUPPLY OF CRUDE OIL AND PRODUCTS LIGHT SWEET CRUDE FOR SEPTEMBER DELIVERY SETTLED AT 1757 A BARREL DOWN 23 CENTS TRADERS SAID ACTIVITY WAS LIGHT BECAUSE MANY PARTICIPANTS WERE ON VACATION GRAINS & SOYBEANS PRICES OF SOYBEAN WHEAT AND CORN FUTURES CONTRACTS FELL AMID FORECASTS FOR BENEFICIAL RAIN IN OHIO AND THE SOUTHEAST AS WELL AS REPORTS OF GOOD GROWING CONDITIONS IN RUSSIA AT THE CHICAGO BOARD OF TRADE THE NOVEMBER DELIVERY SOYBEAN CONTRACT FELL 1825 CENTS A BUSHEL TO SETTLE AT 678 A BUSHEL ACCORDING TO US GRAIN TRADERS RUSSIAN AUTHORITIES ARE FORECASTING A RECORD GRAIN HARVEST OF AS MUCH AS 125 MILLION METRIC TONS RUSSIAN CROP STATISTICS ARE MURKY BUT SUCH A HARVEST MIGHT REPRESENT ROUGHLY A ONETHIRD JUMP IN PRODUCTION A BIG RUSSIAN HARVEST WOULD TEND TO DEPRESS US GRAIN PRICES BECAUSE MOSCOW HAS BEEN A MAJOR CUSTOMER OF US FARMERS RUSSIA'S ECONOMIC CRISIS HAS CURTAILED ITS IMPORTS IN RECENT YEARS BUT WASHINGTON HAS KEPT GRAIN FLOWING THROUGH FOOD AID PACKAGES SPARKS COS IN MEMPHIS TENN RAISED ITS FORECASTS OF THE US CORN AND SOYBEAN HARVESTS TO REFLECT IN PART THE ABATEMENT IN MIDWEST FLOODING AND MORE OPTIMISM AMONG FARMERS SPARKS OFFICIALS WOULDN'T COMMENT ON ITS ESTIMATES BUT THE WIDELY WATCHED FORECASTING FIRM TOLD ITS CLIENTS THAT ITS FIRST FIELD SURVEY INDICATES A US SOYBEAN HARVEST OF 192 BILLION BUSHELS THE FIRM'S EARLIER ESTIMATE OF A 185 BILLION BUSHEL SOYBEAN CROP WAS BASED ON INTERNAL CALCULATIONS THE FIRM RAISED ITS CORN HARVEST FIGURE TO 763 BILLION BUSHELS FROM ITS EARLIER FORECAST OF 742 BILLION BUSHELS 9308060095 930806 ENTERPRISE US FIRMS ABROAD RIDE SHIFTING WAVES OF CURRENCY ANTIDOTES TO MONETARY TURMOIL INCLUDE HEDGING SHORTENING PAYMENT TERMS BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL MOST COMPANIES LOVE NOTHING MORE THAN LOCKING IN CUSTOMERS FOR A GOOD LONG TIME BUT WHEN LUXCEL GROUP INC SET UP SHOP TO SELL PAGING DEVICES IN THE CRIMEAN CITY OF YALTA LAST MONTH IT ADAMANTLY REFUSED TO SIGN LONGTERM SERVICE CONTRACTS FOR THEM WITH LOCAL CURRENCIES IN THE FORMER SOVIET UNION SPRIRALING DOWNWARD THERE WAS NOTHING THAT LUXCEL WANTED LESS THAN A CUSTOMER BOASTING A THREEYEAR CONTRACT INSTEAD THE 30EMPLOYEE COMPANY BASED IN PARAMUS NJ LIMITS RUBLEDENOMINATED SERVICE PACTS TO THREE MONTHS AS SMALL AND MIDSIZE COMPANIES SUCH AS LUXCEL INCREASINGLY OPERATE ABROAD THEY ARE BUSY HONING TECHNIQUES TO PROTECT THEMSELVES AGAINST FALLING FOREIGN CURRENCIES THE TASK IS RAPIDLY GAINING URGENCY IN RECENT DAYS MONETARY TURMOIL IN EUROPE HAS EXPOSED AMERICAN COMPANIES OPERATING THERE TO GREATER FOREIGNEXCHANGE RISK THAN THEY ORDINARILY FACE WHILE VIOLENT CURRENCY SWINGS MAY BE UNLIKELY AMERICAN BUSINESS CAN COUNT ON CONTINUED VOLATILITY BECAUSE EUROPEAN COUNTRIES HAVE AGREED TO ALLOW FAR MORE FLUCTUATION IN THEIR EXCHANGE RATES NOW MEANWHILE CURRENCIES PLUNGE IN VALUE IN THE FORMER SOVIET UNION BRAZIL AND ELSEWHERE IT ALL MEANS THAT FORTUNES CAN BE LOST BY HOLDING THE WRONG CURRENCY AT THE WRONG TIME WE'RE JUST AS WORRIED AS THE BIG COMPANIES SAYS MITCHELL REBACK DIRECTOR OF FINANCE FOR NEUTROGENA CORP A 700EMPLOYEE LOS ANGELES CONCERN THAT DERIVES 25 OF ITS REVENUE FROM OVERSEAS THE MOST COMMON DANGER A LOCAL CURRENCY MAY LOSE VALUE BETWEEN A SALE'S CLOSE IN A LOCAL CURRENCY AND PAYMENT OF THE BILL WHEN PAYMENT DAY ARRIVES THE AMERICAN BUSINESS OWNER COULD END UP WITH CURRENCY WORTH MUCH LESS IN DOLLARS THAN ANTICIPATED FOR COMPANIES THAT CAN GET AWAY WITH IT THE PREFERRED WAY IS TO BILL IN DOLLARS AND LET CUSTOMERS BEAR THE BRUNT OF SHIFTING EXCHANGE RATES IF YOU HAVE A STRONG MARKETING POSITION YOU CAN PLAY THE HARDBALL GAME OF SAYING I WANT TO BE PAID IN MY OWN CURRENCY' SAYS ROBERT BUSH CONTROLLER OF WEDCO TECHNOLOGY INC WEDCO WHICH CUSTOMGRINDS PLASTICS AND OTHER MATERIALS FOR COMPANIES IN THE US AND EUROPE IS THE DOMINANT PLAYER IN ITS SMALL NICHE THE BLOOMSBURY NJ CONCERN EARNED ABOUT A THIRD OF ITS 303 MILLION IN REVENUE IN WESTERN EUROPE LAST YEAR EUROPEAN CUSTOMERS SOMETIMES BALK AT PAYING DOLLARS MR BUSH SAYS BUT WE SAY I'M SORRY THIS IS THE WAY WE DO IT' OBVIOUSLY WE COULD LOSE SOME SALES BUT IT BILLING IN DOLLARS TAKES A TREMENDOUS WORRY OFF OUR SHOULDERS WEDCO'S MARKET DOMINANCE ALSO ALLOWS IT TO ELIMINATE CURRENCYFLUCTUATION RISK CONNECTED TO INVENTORY SOME MANUFACTURERS PURCHASE RAW MATERIALS IN ONE COUNTRY TO SELL IN PROCESSED FORM IN ANOTHER IF CURRENCY FLUCTUATIONS SUDDENLY MAKE MATERIALS MORE EXPENSIVE THE MANUFACTURER MUST PASS ON THE HIGHER COST TO CUSTOMERS OR SWALLOW IT TO AVOID THIS TRAP MANY COMPANIES TRY TO BUY RAW MATERIALS IN THE COUNTRY WHERE THEY SELL FINISHED GOODS OR SHIFT PURCHASES TO COUNTRIES WITH WEAKENING CURRENCIES WEDCO'S OWN SOLUTION FORCE THE CUSTOMER TO SUPPLY ITS OWN RAW MATERIALS AGAIN SOME BALK FACED WITH A RECESSION IN EUROPE CAUSING SLACKENING DEMAND WEDCO ACQUIESCES IN CASES INVOLVING LONGSTANDING CUSTOMERS THE CONTROLLER SAYS CIRCON CORP A SANTA BARBARA CALIF MAKER OF MEDICAL ENDOSCOPES AND VIDEO SYSTEMS COLLECTS DOLLARS FOR ABOUT 50 OF ITS EUROPEAN SALES IF THE COMPANY CAN'T GET PAYMENT IN GREENBACKS IT TRIES TO MINIMIZE RISK BY NEGOTIATING A VERY SHORT TERM OF PAYMENT 10 OR 15 DAYS SAYS RICHARD AUHLL CHAIRMAN AMERICAN BUSINESSES BUYING FROM EUROPEAN VENDORS ALSO SEEK SHELTER SUPREMA SPECIALTIES INC PATERSON NJ BUYS CHEESE FROM ITALIAN COOPERATIVES COMMONLY ORDERING SIX MONTHS IN ADVANCE IT NEGOTIATES A PRICE IN DOLLARS TO BE DUE UPON SHIPMENT BECAUSE THE COOPERATIVES HAVE AN OVERSUPPLY OF CHEESE THEY'LL TAKE ANY KIND OF PAYMENT POSSIBLE SAYS PAUL LAURIERO EXECUTIVE VICE PRESIDENT MANY COMPANIES ACHIEVE THE SAME EFFECT LOCKING IN DOLLARDENOMINATED PRICES BY BUYING FORWARD CONTRACTS FROM BANKS THESE CONTRACTS OBLIGATE THE PARTIES TO EXCHANGE ONE CURRENCY FOR ANOTHER AT A FUTURE DATE AND AT A PREDETERMINED RATE SOME COMPANIES ALSO PURCHASE OPTION CONTRACTS WHICH GIVE CONCERNS THE RIGHT BUT NOT THE OBLIGATION TO EXCHANGE ONE CURRENCY FOR ANOTHER AT A FUTURE DATE AT A SET RATE EVEN FOR SMALL COMPANIES THIS PROTECTION GENERALLY COSTS WELL UNDER 1 OF THE AMOUNT INVOLVED SOME COMPANIES SUCH AS NEUTROGENA SAY BIG BANKS ARE OFTEN RELUCTANT TO SPEND THE TIME NECESSARY TO COUNSEL SMALL OR MIDSIZE PLAYERS ON APPROPRIATE HEDGING STRATEGIES BUT CHECKPOINT SYSTEMS INC A MAKER OF SURVEILLANCE SYSTEMS SCANNING EQUIPMENT AND ANTITHEFT TAGS SAYS IT FINDS BANKS EAGER TO HELP THE THOROFARE NJ CONCERN IS NOW TALKING TO BANKS ABOUT HEDGING PAYABLES AND RECEIVABLES ABROAD SAYS STEVEN SELFRIDGE CHIEF FINANCIAL OFFICER TELEMATICS INTERNATIONAL INC A FORT LAUDERDALE FLA COMPUTERNETWORKING SYSTEMS COMPANY THAT GETS ABOUT HALF ITS 673 MILLION IN SALES OVERSEAS TURNED TO FINANCIAL HEDGING SEVEN MONTHS AGO THAT WAS AFTER THE COMPANY RECORDED 632000 IN LOSSES FOR 1992 BECAUSE IT DIDN'T HEDGE ITS CURRENCY EXPOSURE WE WERE EXPOSED TO THE PLUMMETING BRITISH POUND SAYS JOHN DOOLEY AN ASSISTANT TREASURER 9308060094 930806 FOREIGN EXCHANGE DOLLAR HITS NEW LOW AGAINST THE YEN BUT POSTS GAINS ON EUROPEAN CURRENCIES BY XANDER MELLISH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR ENDED MIXED THURSDAY FALLING TO A NEW HISTORICAL LOW AGAINST THE YEN BUT GAINING ON EUROPEAN CURRENCIES WHEN BULLISH US WEEKLY JOBS DATA BOOSTED OPTIMISM ABOUT MONTHLY EMPLOYMENT FIGURES DUE FRIDAY IN EUROPEAN MARKETS THE FRENCH FRANC BELGIAN FRANC AND DANISH KRONE WERE SLIGHTLY WEAKER AS CENTRAL BANKS STOOD BY THE DRACONIAN INTEREST RATES USED TO DEFEND CURRENCIES AGAINST SPECULATORS LAST WEEK LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17105 MARKS UP FROM 17090 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 104 YEN DOWN FROM 10488 YEN STERLING WAS TRADING AT 14960 DOWN FROM 15015 ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10415 YEN AND AT 17104 MARKS THE DOLLAR GOT CAUGHT UP IN A SURPRISE RALLY EARLIER THURSDAY WHEN THE MARKET BOUGHT THE CURRENCY ON NEWS THAT US STATE JOBLESS CLAIMS HAD FALLEN BY 60000 IN THE WEEK ENDED JULY 31 ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT HAD EXPECTED NEW CLAIMS TO FALL BY ABOUT 23000 ALTHOUGH THE WEEKLY JOBS NUMBERS ARE OFTEN SEEN AS TOO VOLATILE TO PROVIDE A GOOD PICTURE OF THE US ECONOMY THURSDAY'S NUMBERS APPEARED TO SET THE STAGE FOR A BULLISH US NONFARMPAYROLL FIGURE FRIDAY NONFARM PAYROLL GROWTH COUPLED WITH PERCENTAGE UNEMPLOYMENT NUMBERS RELEASED SIMULTANEOUSLY IS CONSIDERED THE MOST IMPORTANT DATA OF THE MONTH BY MANY CURRENCY TRADERS A LOT CAN BE EXTRAPOLATED FROM THE PAYROLL NUMBERS PRODUCTION DEMAND CONSUMER SALES SAID HILLEL WAXMAN A VICE PRESIDENT AND HEAD OF FOREIGN EXCHANGE DEALERS AT BANK LEUMI IN NEW YORK IN A SEPARATE CMR SURVEY ECONOMISTS SAID THEY EXPECT US NONFARM PAYROLLS GREW BY 174000 IN JULY ALTHOUGH THEY CAUTIONED THAT THE IMPACT OF THE MIDWEST FLOODS ON THE NUMBERS WAS DIFFICULT TO PREDICT THE ECONOMISTS EXPECT THAT THE UNEMPLOYMENT RATE WILL REMAIN AT 7 TRADERS SAID ANY PAYROLL NUMBER BELOW 200000 WILL DISAPPOINT THE MARKET AND MAY PUT ADRAG ON THE DOLLAR A WEAK EMPLOYMENT MARKET WOULD SHOW THAT THE US ECONOMIC RECOVERY IS STILL SPOTTY THEY SAID AND ALSO WOULD DISCOURAGE THE FEDERAL RESERVE FROM RAISING INTEREST RATES IN THURSDAY'S RALLY THE DOLLAR TOUCHED 17200 MARKS BUT IT WAS PUSHED DOWN AGAIN AMID RUMORED DOLLAR SELLING BY EUROPEAN CENTRAL BANKS THAT WERE SAID TO BE REPLENISHING CURRENCY RESERVES DEPLETED BY LAST WEEK'S INTERVENTIONS ONCE THE US CURRENCY SHOWED ITSELF UNABLE TO HOLD THAT LEVEL IT DECLINED FOR THE REST OF THE TRADING DAY THE US CURRENCY HIT ITS FOURTH HISTORICAL LOW IN FIVE DAYS AGAINST THE YEN THURSDAY WHEN IT WAS SOLD AS LOW AS 10405 YEN TRADERS SAY THERE IS LITTLE CHANCE THE DOLLAR'S DECLINE AGAINST THE JAPANESE CURRENCY WILL STOP SOON THE MARKET IS TRYING TO PUSH THE DOLLAR LOWER AND LOWER NOTCH BY NOTCH SAID BANK LEUMI'S MRWAXMAN THERE DOESN'T SEEM TO BE CONSIDERABLE UPSIDE RISK AT THIS POINT JAPAN'S HUGE TRADE SURPLUS WILL CONTINUE TO SUPPORT THE YEN MR WAXMAN ADDED BECAUSE IT'S UNLIKELY JAPAN'S NEW GOVERNMENT WILL BE ABLE TO ADDRESS TRADE ISSUES IMMEDIATELY IN EUROPE THE MARK WAS SLIGHTLY STRONGER THURSDAY AGAINST THE ERM CURRENCIES THAT HAVE BEEN TARGETS OF SPECULATORS IN RECENT WEEKS THE MARK WAS AT 34734 FRANCS COMPARED WITH 34617 FRANCS WEDNESDAY AND AT 39449 KRONER COMPARED WITH 39317 KRONER ON WEDNESDAY IT ENDED AT 2115 BELGIAN FRANCS COMPARED WITH 2092 FRANCS WEDNESDAY AND AT 812 SPANISH PESETAS COMPARED WITH 805 ON WEDNESDAY 9308060093 930805 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 9308060092 930806 MAN OF THE HOUR SEN DENNIS DECONCINI D ARIZ IS BEING CELEBRATED AS THE KEY VOTE FOR THE CLINTON ECONOMIC PACKAGE SWITCHING FROM HIS PREVIOUS NO VOTE TO THE CRUCIAL YES VOTE TO REACH A TIE VICE PRESIDENT GORE CAN BREAK SEN DECONCINI WAS ONE OF THE KEATING FIVE SENATORS INVESTIGATED FOR INTERVENING ON BEHALF OF CHARLES KEATING'S FAILED LINCOLN SAVINGS & LOAN MR KEATING HAS SINCE BEEN SENTENCED TO 12 1/2 YEARS FOR BANK FRAUD THE ETHICS COMMITTEE RECOMMENDED NO ACTION AGAINST SEN DECONCINI IN THE COMMITTEE'S HEARINGS ITS OUTSIDE COUNSEL ROBERT BENNETT GAVE THE FOLLOWING ORAL SUMMARY OF THE SENATOR'S ACTIONS OVER THE COURSE OF TWO CAMPAIGNS SEN DECONCINI ACCEPTED APPROXIMATELY 86000 IN CAMPAIGN CONTRIBUTIONS FROM CHARLES KEATING AND HIS ASSOCIATES THE EVIDENCE IS CLEAR THAT WHEN CHARLES KEATING NEEDED HELP FROM SEN DECONCINI HE VERY FREQUENTLY WORKED THROUGH SEN DECONCINI'S CHIEF FUNDRAISER EARL KATZ IN EARLY JULY OF 1985 EARL KATZ WROTE MR KEATING WITH A COPY TO THE SENATOR TO REMIND HIM OF HIS COMMITMENT TO RAISE 25 4000 CONTRIBUTIONS OR 100000 IN 1985 IT WAS ALSO IN JULY OF 1985 ACCORDING TO THE EVIDENCE THAT MR KEATING ENLISTED SEN DECONCINI IN HIS EFFORT TO DRIVE FEDERAL HOME LOAN BANK BOARD CHAIRMAN ED GRAY FROM OFFICE ALSO IN JULY OF 1985 MR KEATING REQUESTED SEN DECONCINI TO WRITE SEN JAKE GARN ABOUT THE DIRECT INVESTMENT RULE WHICH MR KEATING WAS LOBBYING TO RELAX AND SIGNIFICANTLY DURING THIS SAME MONTH JULY OF '85 HIS CAMPAIGN RECEIVED A SERIES OF MAXIMUM CONTRIBUTIONS FROM MR KEATING HIS FAMILY AND HIS EMPLOYEES A TOTAL OF 20000 THE EVIDENCE CLEARLY SHOWS THAT SEN DECONCINI HAVING NEVER MET ATLANTA LAWYER AND KEATING ALLY MR LEE HENKEL AND RELYING ALMOST EXCLUSIVELY ON MR KEATING'S REQUEST AND THE RESUME SENT TO HIM BY MR KEATING WAS ACTIVELY PUSHING MR HENKEL TO BE A MEMBER OF THE FEDERAL HOME LOAN BANK BOARD WHICH SUPERVISED S&LS AND HAD SEVERAL CONVERSATIONS WITH MEMBERS OF THE WHITE HOUSE PERSONNEL OFFICE BUT THE POINT IS THERE WAS AN AGGRESSIVE PUSHING OF MR HENKEL WHOM THE SENATOR HAD NEVER MET PRIMARILY AT THE REQUEST OF MR KEATING THE EVIDENCE SHOWS THAT SEN DECONCINI I RESPECTFULLY SUBMIT WAS A PRINCIPAL ORGANIZER OF THE APRIL 2 1987 MEETING BETWEEN CHAIRMAN GRAY AND THE FOUR SENATORS IT IS DIFFICULT FOR ME TO APPORTION A PERCENTAGE TO SEN RIEGLE AND A PORTION TO SEN DECONCINI BUT I THINK THE EVIDENCE IS OVERWHELMING THAT THE TWO OF THEM PLAYED A VERY KEY ROLE IN ORGANIZING THE MEETING WITH MR GRAY SEN DECONCINI HAS TESTIFIED THAT HE CALLED MR GRAY DIRECTLY RIGHT AROUND ALL THIS PERIOD OF TIME IN FEBRUARY AND MARCH OF '87 SEN DECONCINI'S CAMPAIGN FINANCE CHAIRMAN EARL KATZ WAS RAISING CONTRIBUTIONS FROM MR KEATING FOR SEN RIEGLE'S CAMPAIGN IN RETURN SEN RIEGLE AGREED TO RAISE A LIKE SUM FOR SEN DECONCINI IN MICHIGAN AND YOU REMEMBER THE REFERENCE WAS IN THE SPRING OF '87 NOW AGAIN I WANT TO HASTEN TO ADD I'M NOT SUGGESTING RECIPROCAL FUNDRAISERS ARE WRONG BUT I THINK ONE OF THE AREAS THIS COMMITTEE IS GOING TO HAVE TO FOCUS ON VERY CLEARLY IS WHY AT THE TIME WHEN SEN DECONCINI IS TRYING TO HELP MR KEATING GET RELIEF FROM THE BANK BOARD WHY THERE ARE THESE EFFORTS TO GET MONEY TO MR RIEGLE WHO WAS ON THE BANKING COMMITTEE AND AS YOU KNOW SEN DECONCINI PERSONALLY DELIVERED THESE CHECKS TO SEN RIEGLE SO THERE CAN BE NO DOUBT THAT SEN DECONCINI WAS AWARE AT THE TIME THAT HE WAS ORGANIZING THE MEETING THAT MR KEATING WAS RAISING FUNDS FOR SEN RIEGLE AND EVENTUALLY WOULD AND EVENTUALLY DID GET SOME BENEFIT HIMSELF BY THE RECIPROCITY AGREEMENT THE EVIDENCE IS CLEAR THAT SEN DECONCINI WAS PREPARED TO AND DID IN FACT REPRESENT LINCOLN'S POSITION IN THE APRIL MEETINGS WITH CHAIRMAN GRAY AND THE REGULATORS YOU REMEMBER THE MEMO WRITTEN BY HIS AIDE LAURIE SEDLMAYR SUMS UP AND I QUOTE WHAT AMERICAN CONTINENTAL WANTS FROM GRAY FOR CONCESSIONS HE TESTIFIED CHAIRMAN GRAY THAT AT THE APRIL 2 MEETING SEN DECONCINI PROPOSED THAT THE BANK BOARD PLACE A MORATORIUM ON THE DIRECT INVESTMENT RULE AND IN EXCHANGE LINCOLN WOULD MAKE MORE HOME LOANS THERE IS SUBSTANTIAL EVIDENCE CORROBORATING MR GRAY ON THIS POINT THERE'S NO DISPUTE MEMBERS OF THE COMMITTEE THAT SEN DECONCINI BEGAN THE APRIL 9 1987 MEETING WITH THE SAN FRANCISCO REGULATORS BY ASKING THEM TO FORBEAR IN APPLYING THE DIRECT INVESTMENT RULE ON APRIL 7 OR 11 1989 FEDERAL HOME LOAN BANK BOARD CHAIRMAN DANNY WALL TOLD SEN DECONCINI TWO IMPORTANT FACTS ONE THAT MR WILLIAM SEIDMAN OF THE FDIC AND CERTAIN CALIFORNIA REGULATORS MIGHT OPPOSE THE SALE OF THE KEATINGOWNED LINCOLN AND SECOND THE CURRENT DEAL WAS NOT AN ARM'S LENGTH TRANSACTION THIS WAS ANOTHER RED FLAG BUT DESPITE THAT LAST PIECE OF INFORMATION SEN DECONCINI DID GO ON TO MAKE SEVERAL CALLS ON LINCOLN'S BEHALF LINCOLN WAS SEIZED BY THE GOVERNMENT ON APRIL 14 1989 IT'LL BE UP TO YOU TO DECIDE WHETHER AND WHY SEN DECONCINI IGNORED ALL OF THESE RED FLAGS 9308060091 930806 OTC FOCUS NASDAQ CLIMBS TO RECORD CLOSE AGAIN AS NEW OFFERINGS LEAVE PRICES MIXED BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A SLEW OF NEW STOCK OFFERINGS HIT THE OVERTHECOUNTER MARKET LEAVING PRICES MIXED THE NASDAQ COMPOSITE INDEX CLIMBED TO A SECOND CONSECUTIVE RECORD HIGH GAINING 171 OR 024 TO 71550 BUT DECLINERS OUTNUMBERED ADVANCERS 1409 TO 1318 ON TOTAL VOLUME OF 2698 MILLION SHARES UP FROM WEDNESDAY'S 2534 MILLION SHARES THE MARKET IS HOT FOR THESE NEW ISSUES SAID JAY GOTTLIEB PUBLISHER OF NEW ISSUES OUTLOOK NEWSLETTER IN WHITE PLAINS NY THESE DEALS ARE THE ONES THAT HAVE BEEN SITTING IN THE PIPELINE AND INVESTORS ARE LOOKING FOR SOMETHING NEW FOR THEIR PORTFOLIOS MR GOTTLIEB SAID THAT ON AVERAGE THE RECENT INITIAL PUBLIC OFFERINGS ARE PRICED MORE REASONABLY THAN EARLIER OFFERINGS HE SAID MANY OFFERINGS THAT WERE FILED A FEW MONTHS AGO AT HIGHER VALUES ARE BEING REDUCED IN SIZE AND PRICE IN ORDER TO APPEAL TO INSTITUTIONAL BUYERS ONE OF THE DAY'S MOST ACTIVE STOCKS AND THE BIGGEST GAINER QUICKRESPONSE SERVICES SURGED 34 TO 16 1/8 FROM ITS OFFERING PRICE OF 12 ON ITS FIRST TRADING DAY QUICKRESPONSE OFFERED 35 MILLION SHARES AT THE TOP END OF ITS RANGE THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS THE COMPANY IS A DATABASE AND ELECTRONIC DATA NETWORK FOR RETAILERS AND MERCHANDISE SUPPLIERS PREFERRED ENTERTAINMENT LEAPED 26 TO 19 1/2 FROM ITS OFFERING PRICE OF 15 1/2 IT OFFERED TWO MILLION SHARES IN THE MIDDLE OF AN EXPECTED RANGE OF 14 1/2 AND 16 1/2 THROUGH UNDERWRITERS LED BY GERARD KLAUER MATTISON THE WIRELESS CABLETELEVISION SYSTEM OPERATOR SERVES THE CHICAGO METROPOLITAN AREA EP TECHNOLOGIES ROSE 1/4 TO 6 3/4 FROM ITS OFFERING PRICE OF 6 1/2 ON ITS FIRST TRADING DAY THE SUNNYVALE CALIF COMPANY OFFERED TWO MILLION SHARES THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS EP TECHNOLOGIES MAKES CATHETERS TO TREAT CARDIAC PROBLEMS THE OFFERING WAS DECREASED FROM 25 MILLION SHARES EXPECTED TO COME TO MARKET BETWEEN 10 AND 12 CONDUCTUS EASED 1/8 TO 9 7/8 FROM ITS INITIAL OFFERING PRICE OF 10 THE SUNNYVALE CALIF MAKER OF ELECTRONIC COMPONENTS AND SYSTEMS BASED ON SUPERCONDUCTORS OFFERED 15 MILLION SHARES AT THE LOW END OF ITS RANGE OF 10 AND 12 THROUGH UNDERWRITERS LED BY TUCKER ANTHONY PROXYMED PHARMACY CLOSED UNCHANGED AT 6 1/4 PROXYMED PHARMACY OFFERED 800000 SHARES AT 6 PARAGON CAPITAL WAS THE LEAD UNDERWRITER NATIONAL RECORD MART CLOSED UNCHANGED AT 7 1/2 NATIONAL RECORD MART WAS PRICED AT 7 1/2 THROUGH UNDERWRITERS LED BY LADENBURG THALMANN & CO OF THE TOTAL 15 MILLION SHARES WERE OFFERED BY THE CARNEGIE PA COMPANY AND 200000 BY SELLING SHAREHOLDERS THE RETAIL CHAIN SELLS COMPACT DISKS AND AUDIO AND VIDEO CASSETTES DIAMETRICS MEDICAL CLOSED UNCHANGED AT 14 1/8 DIAMETRICS OFFERED 23 MILLION SHARES AT 13 THE COMPANY MANUFACTURES A PROPRIETARY BLOODCHEMISTRY TESTING SYSTEM THAT PROVIDES IMMEDIATE DIAGNOSTIC RESULTS AT THE POINT OF CARE HAMBRECHT & QUIST AND VECTOR SECURITIES INTERNATIONAL WERE THE LEAD UNDERWRITERS MADGE NV EDGED UP 1/4 TO 10 1/4 FROM ITS OFFERING PRICE OF 10 THE COMPANY SOLD 36 MILLION COMMON SHARES 26 MILLION WERE SOLD BY CERTAIN SHAREHOLDERS THE OFFERING WAS COMANAGED BY GOLDMAN SACHS AND HAMBRECHT & QUIST MADGE PROVIDES COMPUTER NETWORKING SOFTWARE BASED ON TOKENRING NETWORKING STANDARD ARETHUSA OFFSHORE LTD CLOSED UNCHANGED AT 10 ARETHUSA PRICED 48 MILLION SHARES AT 10 THROUGH UNDERWRITERS LED BY SALOMON BROTHERS FOUR MILLION SHARES WERE OFFERED BY THE COMPANY WHOSE PRINCIPLE US EXECUTIVE OFFICES ARE IN HOUSTON THE OFFERING WAS DECREASED FROM 66 MILLION SHARES EXPECTED TO COME TO MARKET BETWEEN 12 AND 14 DAVID BOSTIAN CHIEF ECONOMIST AND INVESTMENT STRATEGIST AT HERZOG HEINE GEDULD SAID THAT ALTHOUGH THERE IS MUCH UNCERTAINTY ABOUT PRESIDENT CLINTON'S ECONOMIC PACKAGE MANY INVESTORS ARE BUYING SMALL STOCKS BECAUSE THEY MIGHT BENEFIT FROM IT HE SAID THE CAPITAL GAINS TAX BREAKS FOR INVESTING IN SMALL STOCKS COULD BE SPARKING SOME OF THE BUYING AFTER TRADING ENDED A FEW MORE IPOS PRICED THEIR SHARES ADVANCED SURGICAL OFFERED 15 MILLION SHARES AT 6 1/2 AND MONARCH CASINO & RESORTS OFFERED 21 MILLION SHARES AT 7 1/2 9308060090 930806 YOUR MONEY MATTERS WEEKEND REPORT BEWARE OF PENSION MAX' INSURANCE SALES PITCH BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU PLAN TO RETIRE SOON THERE'S A GOOD CHANCE YOU'LL BE HEARING FROM A FINANCIAL PLANNER OR INSURANCE AGENT ABOUT A STRATEGY TO MAXIMIZE YOUR PENSION IT'S KNOWN AS PENSION MAX AND IT HAS BECOME A BIG BUSINESS FOR INSURANCE SELLERS AS MORE AND MORE PEOPLE TAKE EARLY RETIREMENT IN CORPORATE RESTRUCTURINGS THE LIFE INSURANCE INDUSTRY HAS DISCOVERED THIS DECISION POINT AND IS EXPLOITING IT AS A SALES OPPORTUNITY SAYS SAN FRANCISCO FINANCIAL CONSULTANT S TIMOTHY KOCHIS THE ADVICE USUALLY GOES LIKE THIS CHOOSE THE SINGLELIFE OPTION UNDER YOUR COMPANY PENSION PLAN THAT WILL GIVE YOU HIGHER INCOME DURING YOUR LIFE DON'T PICK THE JOINTANDSURVIVOR OPTION THAT STRETCHES OUT THE PENSION PAYMENTS OVER THE LIFETIMES OF BOTH YOU AND YOUR SPOUSE BUT WITH A SMALLER MONTHLY CHECK USE THE MONEY YOU GAINED BY TAKING THE SINGLELIFE OPTION TO BUY AN INSURANCE POLICY ON YOUR LIFE WITH YOUR SPOUSE AS BENEFICIARY THAT WILL REPLACE THE PENSION FOR YOUR SPOUSE WITH PENSION MAX YOUR SPOUSE WILL STILL BE PROTECTED AND WILL BE BETTER OFF THAN HE OR SHE WOULD HAVE BEEN UNDER THE JOINTANDSURVIVOR OPTION IT SOUNDS ENTICING BUT A NUMBER OF ACCOUNTANTS ACTUARIES AND FINANCIAL CONSULTANTS SAY PENSION MAX IS RIDDLED WITH PITFALLS IT'S A VERY DANGEROUS AREA FRAUGHT WITH PROBLEMS SAYS BRUCE TEMKIN CONSULTING ACTUARY WITH LOUIS KRAVITZ & ASSOCIATES ENCINO CALIF SO MANY PEOPLE ARE VULNERABLE TO MAKING THE WRONG DECISION IN EVERY CASE HE HAS STUDIED THE RISKS OF THIS APPROACH OUTWEIGH THE ADVANTAGES SAYS ELLIOT S LIPSON PRESIDENT OF HORIZON FINANCIAL ADVISORS AN ATLANTABASED FEEONLY CONSULTING FIRM IT'S WORTH TAKING A HARD LOOK AT THIS ISSUE NOW BECAUSE NEARLY EVERYONE EVENTUALLY FACES THE DECISION OF HOW TO TAKE THEIR PENSION BY LAW EVERY RETIREE MUST BE GIVEN THE CHOICE OF TAKING A PENSION EITHER AS A SINGLELIFE OR JOINTLIFE PAYOUT IF A SPOUSE DECIDES TO GIVE UP A JOINT PENSION HE OR SHE MUST AGREE IN WRITING TO DO SO INSURANCE SALES PRESENTATIONS SELDOM ACCURATELY POINT OUT THE PROBLEMS IN PENSION MAX SAYS LEON LABRECQUE VICE PRESIDENT AT EDUCATIONAL TECHNOLOGIES INC A TROY MICH RETIREMENT CONSULTING FIRM THE COMPUTERGENERATED SALES DEMONSTRATIONS CAN DAZZLE POTENTIAL CUSTOMERS BUT WHEN INDEPENDENT ANALYSTS RUN THE NUMBERS THEY UNRAVEL SAYS JOHN ALLEN AN ARVADA COLO ATTORNEY AND FINANCIAL CONSULTANT PEOPLE CAN REALLY GET SCORCHED ON THESE HE SAYS WHY THE DIFFERENCE IN PENSION PAYOUTS ISN'T USUALLY LARGE ENOUGH TO PAY FOR AN INSURANCE POLICY THAT WILL ADEQUATELY COVER THE SPOUSE SAYS ALBERT EASTON CONSULTING ACTUARY FOR MILLIMAN & ROBERTSON ALBANY NY IT'S VERY DIFFICULT TO JUSTIFY THIS TODAY HE SAYS THE INSURANCE PREMIUM HAS TO COVER SUCH ITEMS AS A COMMISSION FOR THE AGENT OVERHEAD FOR THE INSURANCE COMPANY AND A PROFIT FOR THE COMPANY SAYS JAMES H HUNT INSURANCE ACTUARY WITH THE NATIONAL INSURANCE CONSUMER ORGANIZATION IN ALEXANDRIA VA ONE BIG PROBLEM WITH USING A LIFE INSURANCE POLICY TO REPLACE A PENSION IS INTERESTRATE RISK MR HUNT SAYS MOST PENSION MAX STRATEGIES USE UNIVERSAL LIFE A COMBINATION OF TERM INSURANCE AND AN INVESTMENT ACCOUNT OR INTERESTSENSITIVE WHOLELIFE POLICIES MANY INSURANCE PROJECTIONS USE INTEREST RATES THAT ARE TOO HIGH WHEN THEY ESTIMATE PREMIUMS AND BENEFITS SAYS MR HUNT IF INTEREST RATES FALL YOU WILL HAVE TO PAY HIGHER PREMIUMS TO GET THE SAME DEATH BENEFIT OR YOU WILL END UP WITH A SMALLER DEATH BENEFIT MR HUNT SAYS PEOPLE MAY FIND THEY'RE NOT ABLE TO AFFORD TO PAY HIGHER PREMIUMS LATER ON TO KEEP THE POLICY IN FORCE THERE'S ALSO THE INTERESTRATE RISK WHEN A SPOUSE RECEIVES THE LUMP SUM FROM THE DEATH BENEFIT HE SAYS IF INTEREST RATES ARE LOW THE SPOUSE'S SAFE INVESTMENT OPPORTUNITIES TO PRODUCE A REGULAR INCOME ARE LIMITED HE SAYS SUPPOSE YOU BOUGHT A 250000 LIFE INSURANCE POLICY MANY YEARS AGO WHEN INTEREST RATES WERE HIGH HE SAYS AND YOUR SPOUSE JUST DIED TODAY YOU CAN SAFELY INVEST THAT LUMP SUM IN CDS THAT PAY YOU ONLY 27 A YEAR WITH A PENSION YOU HAVE A FIXED PAYOUT AND DON'T HAVE THAT RISK HE SAYS ANOTHER DRAWBACK WITH THE LUMPSUM INSURANCE PAYOUT IS THAT THE SURVIVING SPOUSE MUST INVEST THAT MONEY AT AN EXTRAORDINARILY STRESSFUL TIME HE OR SHE MAY BE OLD AND IN POOR HEALTH THAT'S A REAL RISK SAYS MR EASTON BY FORGOING THE SURVIVOR'S PENSION THE SPOUSE MAY ALSO BE GIVING UP SPECIAL BENEFITS THAT COME WITH IT FOR EXAMPLE MANY FEDERAL GOVERNMENT PENSIONS ARE INDEXED FOR INFLATION SOME LARGE CORPORATIONS GIVE AD HOC INFLATION INCREASES TO PENSION PAYOUTS PEOPLE WHO REPLACE THEIR PENSION WITH LIFE INSURANCE CAN'T PARTICIPATE IN THOSE ADJUSTMENTS SAYS DOMINIC CARDACE PARTNER WITH KWASHA LIPTON A FORT LEE NJ EMPLOYEE BENEFITS CONSULTING FIRM AT SOME COMPANIES CONTINUING HEALTH INSURANCE COVERAGE IS TIED TO THE STIPULATION THAT THE SPOUSE REMAINS A PENSIONER YOU SHOULD DEFINITELY CHECK INTO THIS BEFORE YOU ACT SAYS JANET SHEPHERD PARTNER HEWITT ASSOCIATES A LINCOLNSHIRE ILL EMPLOYEE BENEFITS CONSULTING FIRM TO BE SURE A LIFE INSURANCE PAYOUT HAS A NUMBER OF BENEFITS A LUMPSUM PAYOUT GIVES THE BENEFICIARY MORE CONTROL OVER THE MONEY SAYS BRYAN DUNN VICE PRESIDENT OF PRUDENTIAL INSURANCE CO OF AMERICA DEATH BENEFITS ARE FREE OF INCOME TAX AND IF THE SURVIVING SPOUSE DIES WITHOUT USING ALL THE LIFE INSURANCE PROCEEDS THE REMAINING MONEY CAN BE PASSED ON TO CHILDREN OR OTHER HEIRS IN CONTRAST A JOINTANDSURVIVOR PENSION ENDS WHEN THE SPOUSE DIES HE SAYS PENSION MAX HAS BECOME A VERY LARGE PART OF OUR MARKETING THRUST SAYS MR DUNN THE CONCEPT IS CLEARLY SOMETHING THAT SHOULD BE INVESTIGATED SAYS MR LIPSON THE ATLANTA FINANCIAL CONSULTANT BUT THE AVERAGE PERSON IS BETTER OFF TAKING THE REDUCED JOINT PENSION AND NOT WORRYING ABOUT IT 9308060089 930806 THURSDAY'S MARKETS DOW DECLINES BY 308 POINTS BONDS ADVANCE BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE SLIPPED IN CAUTIOUS TRADING AHEAD OF THE HOUSE VOTE ON PRESIDENT CLINTON'S BUDGET DEFICITREDUCTION PLAN BOND PRICES ROSE AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE FELL 308 POINTS TO 354897 AND STANDARD & POOR'S 500STOCK INDEX EDGED DOWN 041 TO 44813 BUT THE NASDAQ COMPOSITE INDEX GAINED 171 TO 71550 TO A SECOND CONSECUTIVE RECORD MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER & CO SAID INVESTORS SEEMED TO VIEW THE DEFICITREDUCTION VOTE AS A NOWIN SITUATION HE SAID PASSAGE OF THE PACKAGE PROBABLY WOULDN'T SET OFF A BUYING SPREE AND REJECTION WOULD CERTAINLY BE A SHORTTERM NEGATIVE SURPRISE FOR STOCK PRICES THE MARKET IS NOT SENDING ANY MESSAGE TO GET AGGRESSIVE ON THE BUY SIDE HE SAID AIRLINE STOCKS SANK AFTER SEVERAL CARRIERS ANNOUNCED PLANS TO CUT FARES THE SAGGING AIRLINES HELPED TO KNOCK THE DOW JONES TRANSPORTATION AVERAGE DOWN 1988 POINTS TO 159287 BOTH STOCK AND BOND TRADERS WERE HESITANT YESTERDAY BECAUSE OF TODAY'S RELEASE OF EMPLOYMENT DATA FOR JULY AS A PREVIEW THE LABOR DEPARTMENT SAID YESTERDAY THAT INITIAL CLAIMS FOR STATE UMEMPLOYMENT INSURANCE FELL MUCH MORE THAN EXPECTED IN THE WEEK ENDED JULY 31 ALTHOUGH SOME ANALYSTS BLAMED THE DROP ON HUGE AUTO MAKER LAYOFFS IN THE PREVIOUS WEEK BOND PRICES ROSE PARTLY BECAUSE OF PLUNGING GOLD PRICES WHICH TEND TO INDICATE LOWER INFLATION EXPECTATIONS WORLDWIDE STOCK PRICES WERE UNCHANGED THE DOW JONES WORLD STOCK INDEX STAYED AT 10954 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2496 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1055 ISSUES FELL AND 896 ROSE BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN 1/4 POINT OR OVER 250 FOR EACH 1000 FACE AMOUNT TO YIELD 652 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17105 MARKS AND 10400 YEN COMPARED WITH 17090 MARKS AND 10488 YEN WEDNESDAY 9308060088 930806 TURNER SEEKS TO PURCHASE FILM PRODUCERS CASTLE ROCK AND NEW LINE IN SEPARATE NEGOTIATIONS REGARDING POSSIBLE DEAL BY ANITA SHARPE AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL ONCE AGAIN TED TURNER IS TRYING TO GET INTO THE MOVIE BUSINESS MR TURNER THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TURNER BROADCASTING SYSTEM INC IS IN TALKS WITH TWO INDEPENDENT MOTIONPICTURE PRODUCERS CASTLE ROCK ENTERTAINMENT LOS ANGELES AND NEW LINE CINEMA CORP NEW YORK TURNER BROADCASTING DECLINED TO COMMENT BUT BOTH CASTLE ROCK AND NEW LINE CONFIRMED THAT THEY ARE IN SEPARATE NEGOTIATIONS FOR SOME KIND OF COMBINATION WITH THE ATLANTABASED BROADCASTING AND CABLE PROGRAMMING COMPANY NEW LINE WHICH IS PUBLICLY TRADED HAS A CURRENT MARKET VALUE OF 284 MILLION DOLLARS BASED ON YESTERDAY'S CLOSING PRICE OF 1650 A SHARE THE STOCK CLOSED UP 1875 OR NEARLY 13 IN COMPOSITE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE A REPORT ABOUT THE TALKS APPEARED YESTERDAY IN VARIETY PEOPLE FAMILIAR WITH THE TALKS CAUTIONED THAT MR TURNER STILL FACES SEVERAL OBSTACLES PARTICULARLY POTENTIAL OPPOSITION FROM TIME WARNER INC WHICH OWNS A 206 STAKE IN TURNER BROADCASTING AND HAS THREE SEATS ON ITS BOARD TIME WARNER WHICH OWNS A MAJOR FILM STUDIO HAS OPPOSED PREVIOUS MOVES BY MR TURNER TO GET INTO THE MOVIE BUSINESS HIMSELF MR TURNER'S INTEREST IN THE MOVIE BUSINESS STEMS PARTLY FROM A NEED TO INCREASE TURNER BROADCASTING'S PRODUCTION CLOUT AND DEVELOP FRESH PROGRAMMING FOR HIS CABLE CHANNELS TBS AND TNT HE HAD UNSUCCESSFUL TALKS EARLIER THIS YEAR WITH MGM/UA ENTERTAINMENT CO OWNED BY CREDIT LYONNAIS SA AND ALSO DISCUSSED A COMBINATION WITH PARAMOUNT COMMUNICATIONS INC SMALLER INDEPENDENT STUDIOS LIKE NEW LINE MAY REPRESENT MR TURNER'S BEST SHOT AT BUYING INTO THE MOVIE BUSINESS SAYS ANALYST JOHN REIDY WHO FOLLOWS TURNER BROADCASTING FOR SMITH BARNEY HARRIS UPHAM & CO MR TURNER HAS BEEN SEEKING TO UNTANGLE HIMSELF FROM HIS LARGEST SHAREHOLDERS TIME WARNER AND TELECOMMUNICATIONS INC TALKS REGARDING A POSSIBLE BREAKUP OF TURNER BROADCASTING AND A SPLIT OF ITS ASSETS WERE TABLED EARLIER THIS YEAR THIS TIME THE BOARD GAVE MR TURNER A GREEN LIGHT TO PURSUE THE STUDIO TALKS ACCORDING TO AN INDIVIDUAL IN THE TURNER CAMP OTHER PEOPLE FAMILIAR WITH THE CURRENT TALKS SAY THAT WHILE TELECOMMUNICATIONS IS ENCOURAGING THE MOVES BY TURNER TIME MAY SQUELCH THE WHOLE DEAL THEY HAVE TOLD TED TO COOL HIS HEELS UNTIL OCTOBER BUT HE IS JUST GOING AHEAD AND DOING IT TO RUFFLE THINGS UP SAID ONE OF THEM IT'S NOT GOING ANYWHERE WITHOUT TIME ONE PERSON IN THE NEW LINE CAMP SAID TIME WARNER HAS BEEN TRYING TO STEER TURNER IN THE DIRECTION OF SUPPLYING PROGRAMMING TO TIME WARNER UNITS IT ISN'T THAT TIME WARNER DOESN'T SUPPORT THE DEAL IT SIMPLY HAS ITS OWN STRATEGIC AGENDA HE SAID THEY HAVEN'T BEEN OBSTRUCTIONIST TO THE DEAL SO MUCH AS THEY HAVE BEEN TRYING TO DRIVE TED INTO A DIFFERENT POSITION A SPOKESMAN AT TCI WOULD ONLY SAY THAT THE COMPANY'S CHIEF EXECUTIVE JOHN MALONE RECOGNIZES TED TURNER HAS A LEGITIMATE BUSINESS NEED TO UPDATE HIS LIBRARY OF PROGRAMMING COMPANY NEW LINE IS BEST KNOWN FOR THE NIGHTMARE ON ELM STREET AND TEENAGE MUTANT NINJA TURTLES FILMS ITS CHIEF EXECUTIVE ROBERT SHAYE OWNS ABOUT 27 OF THE COMPANY CASTLE ROCK PRODUCER OF THE CURRENT HIT IN THE LINE OF FIRE IS 45OWNED BY SONY CORP WITH THE BALANCE HELD BY OTHERS THAT INCLUDE MANAGEMENT AND DIRECTOR ROB REINER PEOPLE FAMILIAR WITH THE TALKS SAID ANY TRANSACTION WITH NEW LINE WHICH IS PUBLICLY TRADED WOULD LIKELY INVOLVE TURNER STOCK ACCORDING TO PEOPLE FAMILIAR WITH NEW LINE'S POSITION MR SHAYE IS MOTIVATED TO SELL OUT TO TURNER TO ENHANCE THE COMPANY'S LONGTERM VIABILITY THESE PEOPLE SAY THAT NEW LINE IS ARGUABLY THE INDUSTRY'S ONLY REMAINING SUCCESSFUL INDEPENDENT BUT NEEDS TO FORM A STRATEGIC ALLIANCE WITH A STRONG PLAYER TO BE A HEALTHY SURVIVOR OVER THE LONG TERM IT IS LESS CLEAR HOW A DEAL WITH CASTLE ROCK WOULD BE STRUCTURED THE COMPANY IS STRAPPED FOR FUNDS AND HAS BEEN SEEKING AN INVESTOR WHO COULD PUT UP A HEFTY SUM FOR FUTURE EXPANSION AND PRODUCTION SONY WHICH HAS PROFITED FROM DISTRIBUTING SUCH CASTLE ROCK HITS AS WHEN HARRY MET SALLY AND A FEW GOOD MEN HAS DECLINED TO INVEST ADDITIONAL MONEY IN CASTLE ROCK OTHER THAN PAYING COSTS OF INDIVIDUAL MOVIES THAT IT THEN DISTRIBUTES BUT OFFICIALS THERE SAID SONY PICTURES HASN'T BEEN APPROACHED BY ANY BUYER FOR ITS STAKE AND IN ANY CASE WOULD BE UNLIKELY TO SELL UNLESS IT WERE OFFERED A HEFTY PREMIUM ONE SCENARIO THEY SAID WAS THAT TURNER MIGHT BUY A STAKE IN CASTLE ROCK FROM THE OTHER HOLDERS AND PUMP NEW CASH INTO THE COMPANY 9308060087 930806 LAW LEGAL BEAT KING CASE SHOWS JUDGES' WIDE DISCRETION BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL THE SURPRISINGLY LIGHT SENTENCES IMPOSED ON THE TWO POLICEMEN CONVICTED OF BEATING RODNEY KING SHOW THAT JUDGES RETAIN GREAT DISCRETION IN PUNISHING MOST CRIMINALS EVEN UNDER THE MUCHMALIGNED FEDERAL SENTENCING RULES THE 2 1/2YEAR PRISON TERMS METED OUT WEDNESDAY TO LOS ANGELES POLICE SGT STACEY KOON AND OFFICER LAURENCE POWELL WERE ARRIVED AT UNDER THE US SENTENCING GUIDELINES A 500PAGE TOME THAT SEEMS TO RESEMBLE A MATHEMATICS TEXTBOOK MORE THAN IT DOES A TREATISE ON MORAL CULPABILITY UNDER THE GUIDELINES EACH CRIME IS ASSIGNED A NUMERICAL VALUE AND VARIOUS CIRCUMSTANCES ALLOW FOR ADDITIONS AND SUBTRACTIONS THE FINAL RESULT READ OFF A GRID THEN BECOMES AN OFFENSE LEVEL WHICH DICTATES YEARS IN PRISON ALTHOUGH THE LOS ANGELES SENTENCES WERE CRITICIZED AS TOO LOW BY MANY OBSERVERS LEGAL EXPERTS AGREED THAT THEY DIDN'T APPEAR TO VIOLATE THE EXPLICIT TERMS OF THE GUIDELINES THE GOAL OF THE GUIDELINES ENACTED IN 1987 WAS TO LIMIT JUDGES' DISCRETION BUT NOT TO ELIMINATE IT ENTIRELY CRITICS HAVE SAID THEY FAILED ON BOTH COUNTS THE RULES ARE SOMETIMES TOO RESTRICTIVE IN AREAS SUCH AS DRUG CRIMES IN WHICH HARSH MINIMUM SENTENCES ARE SET AND TOO LENIENT IN ASSAULT CASES LIKE THE KING TRIAL IN WHICH THERE ARE NO MINIMUMS AND A JUDGE CAN EFFECTIVELY JUSTIFY A WIDE VARIETY OF PENALTIES IN THE MOST CONTROVERSIAL ASPECT OF HIS SENTENCING DECISION JUDGE JOHN G DAVIES DEPARTED DOWNWARD FROM THE AGGRAVATEDASSAULT OFFENSE LEVEL UNDER A CLAUSE THAT ALLOWS JUDGES TO DO SO PROVIDED THEY DEEM THE CHANGES REASONABLE UNDER THE RUBRIC OF REASONABLENESS JUDGE DAVIES SAID THE DEFENDANTS DESERVED LENIENCY BECAUSE THEY MAY BE SUBJECT TO ABUSE IN PRISON AS A RESULT OF THE NOTORIETY OF THE CASE AND BECAUSE THEY ARE FACING A POLICE DEPARTMENT HEARING AT WHICH THEY ARE EXPECTED TO LOSE THEIR JOBS HE ALSO SAID THE DEFENDANTS AREN'T DANGEROUS AND DON'T POSE A THREAT TO SOCIETY AND ADDED THAT THEY HAD BEEN SUBJECT TO TWO TRIALS THE JUDGE JUST STARTED MARCHING DOWNWARD SAID LOYOLA LAW SCHOOL PROF LAURIE LEVENSON WHO WATCHED THE TRIAL FROM THE BEGINNING I COULD JUST SCREAM ABOUT HIS REASONING OBSERVERS SAID THAT IF THE GOVERNMENT APPEALS IT IS LIKELY TO ARGUE THAT IT WASN'T REASONABLE FOR THE JUDGE TO CONSIDER SUCH ISSUES AS POSSIBLE ABUSE IN PRISON AND ANTICIPATED JOB LOSS HOWEVER JUDGE DAVIES ALSO REDUCED THE SENTENCE BECAUSE HE DETERMINED MR KING HAD PROVOKED THE ATTACK PROVOCATION IS EXPLICITLY PROVIDED FOR IN THE GUIDELINES AS A GROUND FOR DEPARTURE AND MOST EXPERTS AGREED THAT DECISION COULDN'T BE CHALLENGED IN A STATEMENT RELEASED AFTER THE SENTENCING THE US ATTORNEY'S OFFICE IN LOS ANGELES SAID THE GUIDELINES MANDATED SUBSTANTIALLY HIGHER PRISON TERMS AND THAT PROSECUTORS ARE CONSIDERING AN APPEAL BUT LAWYER DAVID A LOMBARDERO WHO BRIEFLY SERVED AS CHIEF COUNSEL TO THE US SENTENCING COMMISSION WHICH WROTE THE GUIDELINES SAID HE THINKS THE DEPARTURES WOULD HOLD UP WELL ON APPEAL MR LOMBARDERO WHO WROTE JUDGE DAVIES A LETTER URGING HIM TO RULE LENIENTLY SAID THAT IF AN APPEALS COURT REJECTED THE JUDGE'S OTHER STATED REASONS FOR DEPARTURE THE JUDGE COULD SIMPLY SAY THAT HE WAS REDUCING THE SENTENCE ENTIRELY ON GROUNDS OF PROVOCATION THAT SORT OF THING HAS HAPPENED BEFORE SAID MR LOMBARDERO A PARTNER IN THE LOS ANGELES OFFICE OF THE LAW FIRM HUGHES HUBBARD & REED PROSECUTORS IN THE CASE HAVE CRITICIZED MR LOMBARDERO SAYING HE MAY BE BIASED BECAUSE HE IS A RESERVE POLICE OFFICER THE COMPLEXITY OF THE GUIDELINES AND THE DEGREE OF THE JUDGE'S DISCRETION ARE REVEALED BY A CLOSER LOOK AT THE NUMBERS IN THE KING CASE BEFORE EVEN CONSIDERING DOWNWARD DEPARTURES JUDGE DAVIES HAD TO DETERMINE THE OFFENSE LEVEL THAT WOULD APPLY FOR AN AGGRAVATED ASSAULT THE LEVEL IS FIFTEEN WHEN AN ASSAULT IS ALSO A CIVIL RIGHTS VIOLATION BY A GOVERNMENT OFFICIAL AS IN THIS CASE ADD ANOTHER SIX TACK ON FOUR MORE POINTS BECAUSE OF THE USE OF DANGEROUS WEAPONS IN THIS CASE POLICE BATONS THAT EQUALS TWENTYFIVE PROSECUTORS ARGUED THAT ANOTHER FOUR POINTS SHOULD BE ADDED BECAUSE MR KING SUFFERED SERIOUS BODILY INJURY BUT JUDGE DAVIES IN A MOVE THAT HAS DRAWN CRITICISM REVIEWED THE FAMOUS AMATEUR VIDEOTAPE OF THE BEATING AND DETERMINED THAT ONLY THE FINAL FEW BLOWS WERE ILLEGALAND THOSE CAUSED BODILY INJURY THAT WASN'T SERIOUS JUDGE DAVIES ADDED TWO POINTS INSTEAD OF FOUR FOR A TOTAL OFFENSE LEVEL OF 27 WHICH CALLED FOR A PRISON TERM OF BETWEEN FIVEYEARS10MONTHS AND SEVENYEARSTHREEMONTHS HAD THE JUDGE DEEMED THE INJURY SERIOUS THE ADDITIONAL POINTS COULD HAVE MEANT SEVEN MORE MONTHS IN PRISON PROF LEVENSON SAID ASSUMING THE SAME DOWNWARD DEPARTURE THERE IS NO PAROLE IN THE FEDERAL SYSTEM THE DEFENDANTS WILL SERVE THE ENTIRE TERM OF THEIR SENTENCES MINUS AS MUCH AS 54 DAYS A YEAR FOR GOOD BEHAVIOR A COMPANY'S RULE REQUIRING DIRECTORS TO STEP DOWN AT AGE 62 VIOLATES AGEDISCRIMINATION LAW THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION ALLEGED THE EEOC FILED A LAWSUIT IN FEDERAL COURT IN NEW YORK CHALLENGING THE PRACTICE OF JOHNSON & HIGGINS INC ONE OF THE COUNTRY'S LARGEST INSURANCE BROKERS THE CLOSELY HELD FIRM IS OWNED BY ITS DIRECTOR AND THE MANDATORY RETIREMENT POLICY IS OSTENSIBLY DESIGNED TO FREE UP SHARES SO THAT YOUNGER EXECUTIVES WILL HAVE A CHANCE TO A OWN A PIECE OF THE COMPANY BUT JAMES LEE NEW YORK REGIONAL ATTORNEY FOR THE EEOC SAID THE POLICY IS IN BLATANT VIOLATION OF THE LAW IT IS HARD TO BELIEVE THAT SUCH CLEAR DISCRIMINATION COULD OCCUR IN THIS DAY AND AGE A SPOKESWOMAN FOR JOHNSON & HIGGINS DECLINED TO COMMENT WHO'S NEWS JAMES R CURTISS FORMERLY A MEMBER OF THE US NUCLEAR REGULATORY COMMISSION JOINED CHICAGO LAW FIRM WINSTON & STRAWN MR CURTISS WHO WILL BE A PARTNER IN THE LAW FIRM'S WASHINGTON OFFICE WILL SPECIALIZE IN REPRESENTING NUCLEARUTILITY COMPANIES PETER L HESS JOINED THE HARTFORD CONN OFFICE OF NEW YORK LAW FIRM LEBOEUF LAMB LEIBY & MACRAE WHERE HE WILL BE OF COUNSEL HE PREVIOUSLY WAS GENERAL COUNSEL FOR A DIVISION OF ASEA BROWN BOVERI INC A SWISS POWERTRANSMISSION COMPANY CHINA EXPANSION STANLEY LUBMAN JOINED BRITISH LAW FIRM ALLEN & OVERY AS A CONSULTANT IN ITS HONG KONG AND BEIJING OFFICES MR LUBMAN WILL EXPAND THE LAW FIRM'S SMALL BEIJING OPERATION AND WILL BE HEAD OF ITS CHINA PRACTICE A FIRM SPOKESWOMAN SAID MR LUBMAN WHO HAS REPRESENTED CLIENTS IN CHINA FOR 20 YEARS IN TRADE AND INVESTMENT MATTERS HAS BEEN A VISITING PROFESSOR AT HARVARD AND STANFORD LAW SCHOOLS AND THE UNIVERSITY OF LONDON NAMING RAPE VICTIMS A FLORIDA LAW BARRING THE NEWS MEDIA FROM PUBLISHING RAPE VICTIMS' NAMES WAS DECLARED UNCONSTITUTIONAL BY A STATE APPEALS COURT THE ASSOCIATED PRESS REPORTED A SUPERMARKET TABLOID HAD BEEN CHARGED WITH BREAKING THE LAW BY PUBLISHING THE NAME OF PATRICIA BOWMAN SHORTLY AFTER SHE ACCUSED WILLIAM KENNEDY SMITH OF RAPE MR SMITH WAS ACQUITTED IN 1991 THE APPEALS COURT UPHOLDING A LOWERCOURT RULING SAID THE STATE CAN TRY TO KEEP A VICTIM'S IDENTITY A SECRET BUT CAN'T PUNISH JOURNALISTS FOR PUBLISHING IT AFTER THEY LEARN THE NAME FROM OTHER SOURCES JUNDA WOO CONTRIBUTED TO THIS ARTICLE 9308060086 930806 SEC GRADES FIRMS ON SALARY DISCLOSURE BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MANY PUBLICLY TRADED COMPANIES EARNED HIGH MARKS IN MEETING NEW DISCLOSURE REQUIREMENTS FOR EXECUTIVE COMPENSATION ACCORDING TO AN ASSESSMENT BY THE SECURITIES AND EXCHANGE COMMISSION STAFF BUT THE REPORT CARD SCHEDULED TO BE DELIVERED TODAY IS EXPECTED TO HAND OUT MUCH HARSHER MARKS INCLUDING FLUNKING GRADES FOR SOME COMPANIES' JUSTIFICATIONS OF WHY THEIR EXECUTIVES WERE PAID SO MUCH AS A RESULT THE SEC IS EXPECTED TO ISSUE A SORT OF WRISTSLAP FOR THE COMPANIES IN AN ACTION KNOWN AS AN INTERPRETIVE RELEASE IN IT THE SEC WILL BE MORE EXPLICIT ABOUT WHAT IT WANTS TO READ IN THE COMPENSATIONCOMMITTEE REPORTS WITHOUT ACTUALLY SETTING A HARDANDFAST RULE FOR WHAT MUST BE INCLUDED THE REPORT IS DUE TO BE DISCUSSED DURING THE SEC'S FIRST PUBLIC MEETING WITH NEW CHAIRMAN ARTHUR LEVITT UNDER THE COMPENSATIONDISCLOSURE RULES THAT TOOK EFFECT THIS YEAR COMPANIES ARE REQUIRED TO INCLUDE IN THEIR PROXY STATEMENTS A JUSTIFICATION OF EXECUTIVE SALARIES WRITTEN AND SIGNED BY THEIR BOARDS' COMPENSATION COMMITTEE BUT COMPLIANCE ACCORDING TO ONE SEC OFFICIAL CAN BE CHARITABLY DESCRIBED AS SPOTTY STAFF MEMBERS DECLINED TO PROVIDE SPECIFIC EXAMPLES BUT ANOTHER OFFICIAL WHO HAS SEEN THE REPORTS SAID THE RESULTS WERE ALL OVER THE MAP COMMISSIONER J CARTER BEESE JR SAID NEITHER COMPANIES NOR SHAREHOLDERS SHOULD ANTICIPATE SIGNIFICANT CHANGES IN THE DISCLOSURE OBLIGATIONS WE'RE JUST TRYING TO SPELL THEM OUT MORE CLEARLY HE SAID AT THE SAME TIME HE ADDED I WANT TO MAKE SURE THAT WE'RE NOT OVERBURDENING DIRECTORS AN INTERPRETIVE RELEASE WILL HELP CLARIFY EXACTLY WHAT IS REQUIRED SO COMPANIES DON'T HAVE TO HIRE EXTENSIVE CONSULTANTS THE SEC'S ACTION WILL BE WATCHED CLOSELY BY THE UNITED SHAREHOLDERS ASSOCIATION A WASHINGTONBASED GROUP REPRESENTING SMALL SHAREHOLDERS THAT USED THE NEW PROXY RULES THIS YEAR TO TRY TO FORCE CHANGES AT SEVERAL COMPANIES WE DIDN'T SEE ANY MAJOR DEFICIENCIES EXCEPT FOR THE NARRATIVE REPORTS BY THE COMPENSATION COMMITTEES SAID RALPH WHITWORTH EXECUTIVE DIRECTOR OF UNITED SHAREHOLDERS I NOTICED A FEW THAT WERE PRETTY MUCH RHETORICAL WITHOUT SPECIFICS THE SEC SAID THEY WEREN'T GOING TO ACCEPT BOILERPLATE AND GENERALIZATIONS WE'LL SEE HOW CLOSELY THE SEC HOLDS THE COMPANIES' FEET TO THE FIRE THE MEETING TODAY WILL ALLOW THE SEC TO GIVE ITS DRUTHERS AN EVEN BROADER AIRING NEXT WEEK AT THE ANNUAL CONVENTION OF THE AMERICAN BAR ASSOCIATION WHERE THE SEC'S DIRECTOR OF CORPORATE FINANCE LINDA QUINN IS SCHEDULED TO SPEAK IN ADDITION TO APPROVING THE INTERPRETIVE RELEASE ON COMPENSATION COMMITTEE REPORTS THE SEC IS EXPECTED TO FINETUNE OTHER MORE TECHNICAL PORTIONS OF THE COMPENSATIONDISCLOSURE RULES 9308060085 930806 CORNING COMPLETES ACQUISITION CORNING NY CORNING INC SAID THE MERGER OF ITS CORNING LAB SERVICES UNIT WITH DAMON CORP BECAME EFFECTIVE WEDNESDAY THE COMPANY SAID THAT AS A RESULT OF THE MERGER DAMON WAS ADVISED BY THE NEW YORK STOCK EXCHANGE THAT FURTHER DEALINGS IN ITS COMMON STOCK WERE SUSPENDED IMMEDIATELY CORNING PREVIOUSLY SAID IT HAD ACCEPTED FOR PAYMENT ALL DAMON COMMON SHARES TENDERED PURSUANT TO ITS 23ASHARE TENDER OFFER AND THAT AS A RESULT OF THE SUBSEQUENT MERGER ALL REMAINING DAMON SHARES WOULD BE CONVERTED INTO THE RIGHT TO RECEIVE 23 A SHARE LAST MONTH CORNING SAID IT VALUED THE DEAL AT 575 MILLION FOR A TOTAL OF 16 MILLION SHARES THE ASSUMPTION OF 164 MILLION IN LONGTERM DEBT AND 43 MILLION IN OTHER FEES AND COSTS 9308060084 930806 CORRECTION IN OUR AUGUST 2 REVIEW & OUTLOOK REINVENTING CITY HALL WE INCORRECTLY IDENTIFIED THE MAYOR OF CLEVELAND HE IS MICHAEL WHITE 9308060083 930806 MEDIA WHITTLE'S PLAN FOR BIG GROWTH RUNS INTO SNAGS BY PATRICK M REILLY AND SUZANNE ALEXANDER STAFF REPORTERS OF THE WALL STREET JOURNAL CHRISTOPHER WHITTLE'S DREAM OF BUILDING A MEDIA INDUSTRY POWERHOUSE WHILE SINGLEHANDEDLY OVERHAULING THE COUNTRY'S PUBLICEDUCATION SYSTEM IS FADING IN RECENT MONTHS MR WHITTLE'S AMBITIOUS PLANS HAVE STALLED THE CHAIRMAN AND FOUNDER OF WHITTLE COMMUNICATIONS LP IN KNOXVILLE TENN IS DIGGING INTO HIS PRIVATE HOLDINGS TO HELP FINANCE HIS EDISON SCHOOLS PROJECT AFTER FAILING TO ATTRACT BIG CORPORATE PARTNERS AND WHITTLE'S PRIMARY BUSINESS IN SOCALLED PLACEBASED MEDIA HAS HIT SNAGS AND FACES LIMITED GROWTH INDUSTRY OBSERVERS SAY THE 45YEAROLD MR WHITTLE WHO ONCE CONSIDERED A POLITICAL CAREER HAS ENVISIONED A BRAND OF SCHOOLS THAT WOULD USE HIGH TECHNOLOGY AND CREATIVE TEACHING TECHNIQUES TO PROVIDE AN ALTERNATIVE TO PUBLIC SCHOOLS IN THE SAME WAY HE HAS SPENT YEARS CREATING SEXY ALTERNATIVES TO TRADITIONAL MEDIA PROPERTIES DELIVERING CAPTIVE MARKETS SUCH AS MOTHERS IN DOCTORS' WAITING ROOMS TO ADVERTISERS USUALLY WILLING TO PAY A PREMIUM MR WHITTLE IS BESET BY PROBLEMS HE DIDN'T ANTICIPATE THOUGH REGARDED AS A ZEALOUS CONVINCING SALESMAN SOME OF THE PROPERTIES HE HAS CHAMPIONED HAVEN'T BEEN ABLE TO WEATHER A TOUGH ADVERTISING CLIMATE AND AD AGENCIES STILL HAVE QUESTIONS ABOUT THE RESEARCH HE PROVIDES CLIENTS WHITTLE'S SPECIAL REPORTS VIDEO AND MAGAZINE SYSTEM FOR DOCTORS' WAITING ROOMS IS OPERATING AT A LOSS AND HAS BEEN SCALED DOWN REPEATEDLY EVEN WHITTLE'S CROWN JEWEL THE ADVERTISERSUPPORTED CHANNEL ONE NEWS PROGRAM FOR CLASSROOMS MAY HAVE ONLY BROKEN EVEN IN THE LATEST FISCAL YEAR WHITTLE INSIDERS SAY AND REQUIRES MAJOR FUNDING FOR EXPANSION TO BRING OTHER PROJECTS TO FRUITION SUCH AS MEDICAL NEWS NETWORK AN INTERACTIVE COMPUTER AND TELEVISION SYSTEM FOR PHYSICIANS MR WHITTLE ACKNOWLEDGES HE WILL NEED A MAJOR INFUSION OF CAPITAL MOREOVER HIS EDISON PROJECT WILL ALSO NEED AN ADDITIONAL 130 MILLION AT THE START OF 1995 IF IT IS TO BE LAUNCHED NATIONALLY SUPPORT FROM WHITTLE'S CORPORATE PARTNERS REMAINS SOLID BUT THEY EXPRESS DISAPPOINTMENT AT ITS RECENT PERFORMANCE BRITAIN'S ASSOCIATED NEWSPAPER HOLDINGS PLC AND PHILIPS ELECTRONICS NV OF THE NETHERLANDS WHICH EACH OWN ABOUT 25 OF WHITTLE SAY THEY WILL PROVIDE THE FUNDING THEY PREVIOUSLY AGREED TO BUT NO MORE TIME WARNER INC WHICH OWNS 375 OF WHITTLE HAS SAID IT WON'T PUT UP MORE CASH AND WANTS OUT IN THE YEAR ENDED JUNE 30 SAID A WHITTLE MANAGING PARTNER WHO ASKED NOT TO BE IDENTIFIED THE PARTNERSHIP HAD ITS FIRST LOSS ABOUT 20 MILLION EVEN IF HE CAN GET EDISON OFF THE GROUND MR WHITTLE FACES STRONG OPPOSITION FROM THE EDUCATION ESTABLISHMENT MR WHITTLE NOW PLANS TO MOVE FASTER ON MANAGING EXISTING PUBLIC SCHOOLS THAN ON HIS ORIGINAL PLAN TO BUILD SCHOOLS WHY WOULD ANY SCHOOL SYSTEM TRUST WHITTLE COMMUNICATIONS TO RUN A SCHOOL WHEN THEY HAVEN'T RUN THEIR OWN COMPANY VERY WELL ASKED ALBERT SHANKER PRESIDENT OF THE AMERICAN FEDERATION OF TEACHERS IN A NEWS RELEASE EARLIER THIS WEEK THERE ISN'T MUCH DEMAND FOR CHRIS WHITTLE OUT THERE ADDS PETER RELIC PRESIDENT OF THE NATIONAL ASSOCIATION OF INDEPENDENT SCHOOLS MR WHITTLE SAYS HIS CRITICS SHOULD REMEMBER HE HAS DEFIED NAYSAYERS BEFORE WITH THE STARTUP OF HIS COMPANY HIS TURNAROUND OF ESQUIRE MAGAZINE IN THE 1970S AND THE LAUNCH OF CHANNEL ONE WE STARTED TRANSFORMING THIS BUSINESS AND IT'S BEEN PAINFUL HE SAYS BUT WHEN WE ARE DONE WE WILL HAVE A BIG SUCCESS MR WHITTLE DECLINES TO COMMENT ON THE PROFITS OF HIS CLOSELY HELD COMPANY BUT WHILE HE REMAINS BULLISH ABOUT HIS COMPANY'S FUTURE HE SAYS THE LATEST FISCAL YEAR WAS ONE OF THE ROUGHEST EVER FOR THE COMPANY WHOSE ROOTS STRETCH BACK TO HIS DAYS AS A STUDENT BUSINESSMAN AT THE UNIVERSITY OF TENNESSEE IN 24 YEARS THIS IS THE FIRST YEAR WE'VE HAD DOWN REVENUES AND I DON'T LIKE IT HE SAYS MR WHITTLE SAYS WHITTLE COMMUNICATIONS HAD REVENUE OF 201 MILLION IN THE LATEST YEAR DOWN 56 FROM 213 MILLION IN FISCAL 1992 DESPITE YEARS OF INTRODUCING MUCHPUBLICIZED MEDIA PRODUCTS WHITTLE HAS NEVER MET ITS FOUNDER'S GRAND PROJECTIONS THIS YEAR MR WHITTLE SAYS HE ISN'T MAKING ANY MORE PROJECTIONS MR WHITTLE ATTRIBUTES THE DROP IN REVENUE TO HIS COMPANY'S TRANSFORMATION FROM A LARGELY PRINTBASED MEDIA COMPANY WITH SEVERAL SMALL PROPERTIES TO AN ELECTRONIC MEDIA COMPANY WHOSE PROPERTIES ARE FEWER AND DEMAND A MUCH LARGER UPFRONT CAPITAL INVESTMENT REVENUE FROM TVBASED PROJECTS JUST 11 MILLION IN 1990 REACHED 160 MILLION IN THE LATEST FISCAL YEAR AND HE PREDICTS THE FIGURE WILL CONTINUE TO GROW WE ARE MAKING A DRAMATIC TRANSFORMATION AS A COMPANY HE SAYS AND IN THE LONG TERM THIS WILL BE A HIGHERREVENUE BUSINESS MR WHITTLE SAYS HIS COMPANY IS CREATING INTERACTIVE MEDIA PROPERTIES THAT PARALLEL THOSE BEING CREATED BY COMPANIES SUCH AS TIME WARNER AND TELECOMMUNICATIONS INC BUT THAT FOCUS ON SCHOOLS AND BUSINESS RATHER THAN THE HOME MR WHITTLE'S SUPPORTERS SAY HE HAS BEEN CONSUMED BY HIS EXHAUSTIVE SEARCH FOR CORPORATE PARTNERS TO HELP FUND EDISON AND BUY OUT TIME WARNER'S STAKE MANY COMPANIES HE APPROACHED INCLUDING WALT DISNEY CO DECLINE TO COMMENT COX ENTERPRISES INC A NEWSPAPER PUBLISHER AND CABLE OPERATOR CONSIDERED INVESTING AND LIKE MANY THAT DID APPLAUDED EDISON AIMS BUT DECIDED AGAINST IT THE EDUCATION COMPONENT IS FASCINATING AND WE WANT TO SEE IT GIVEN A TRY SAYS DAVID EASTERLY PRESIDENT OF COX NEWSPAPERS BUT THE RISK WAS JUST A LITTLE BEYOND OUR COMFORT LEVEL IT'S UNLIKELY WE WILL GO BACK AND LOOK AT IT AGAIN INVESTORS ALSO QUESTIONED THE GROWTH POTENTIAL OF WHITTLE'S EXISTING PROPERTIES ALTHOUGH MR WHITTLE SAYS CHANNEL ONE WITH 12000 SCHOOL SUBSCRIBERS TURNED A PROFIT LAST YEAR WHITTLE IS NOW IN A CRUCIAL PERIOD OF RESIGNING MANY ADVERTISERS SOME OF WHOM ARE EXPECTED TO NEGOTIATE FOR LOWER RATES IF THEY DO COME BACK WHITTLE HAS ACKNOWLEDGED THAT IN APRIL IT VIOLATED TERMS OF ITS SCHOOL CONTRACTS BY INTRODUCING 25 MINUTES OF COMMERCIALS ON SOME DAYS INSTEAD OF THE TWOMINUTE MAXIMUM SUCH ACTIONS HAVE FED A PERSISTENT UNDERCURRENT OF RESISTANCE TO CHANNEL ONE IN CALIFORNIA WHITTLE HAS SPENT MORE THAN 1 MILLION LOBBYING IN THE FACE OF EDUCATION DEPARTMENT OPPOSITION BUT HAS FEWER THAN 100 SCHOOL SUBSCRIBERS A BILL TO BAN THE PROGRAM IS ADVANCING IN THE STATE LEGISLATURE NEW YORK CONTINUES TO BAN THE PROGRAM WITHOUT THESE TWO STATES FORMER WHITTLE STAFFERS SAY GROWTH OPPORTUNITIES ARE LIMITED ON EDISON MEANWHILE WHITTLE INSIDERS EXPECT OPPOSITION FROM TEACHERS' UNIONS WHOSE COLLECTIVE BARGAINING RIGHTS COULD PRECLUDE SOME EDISON IDEAS THE UNIONS WILL CUT OFF HIS HEAD AND HAND IT TO HIM SAYS JOHN GOLLE CHAIRMAN OF EDUCATION ALTERNATIVES INC A MINNESOTA COMPANY THAT HAS NEGOTIATED MANAGEMENT CONTRACTS SIMILAR TO THOSE WHITTLE IS PURSUING HE CONTINUES TO SAY A LOT OF NAIVE STATEMENTS THIS IS NOT A POLLYANNA BUSINESS WHERE YOU CAN OPERATE WITHOUT REGARD TO STATE LAWS LEGISLATION IN PLACE AND BARGAINING CONTRACTS IN PLACE 9308060082 930806 ALLIED PRODUCTS IS FOCUS OF US INQUIRY ON WHETHER EXAIDES BRIBED RUSSIANS BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL THE DEPARTMENT OF JUSTICE IS INVESTIGATING WHETHER TWO FORMER OFFICIALS OF ALLIED PRODUCTS CORP MAY HAVE MADE ILLEGAL PAYOFFS TO OBTAIN BUSINESS IN RUSSIA ACCORDING TO INDIVIDUALS FAMILIAR WITH THE PROBE CHICAGOBASED ALLIED TURNED OVER INFORMATION TO THE JUSTICE DEPARTMENT AFTER IT FOUND SOME 350000 MISSING FROM AN ACCOUNT OF ITS COOPER DIVISION WHICH MANUFACTURES EQUIPMENT USED TO REPAIR OIL RIGS KENNETH LIGHT AN ALLIED OFFICIAL CONFIRMED YESTERDAY THAT THE CONCERN HAD FIRED TWO EXECUTIVES AT ITS BRADY TEXASBASED COOPER DIVISION HE SAID ALLIED HAD UNCOVERED SIX OR SEVEN WEEKS AGO AN EMBEZZLEMENT OF 350000 DURING A ROUTINE AUDIT HE SAID THAT UP TO 60000 OF THE WITHDRAWALS POSSIBLY CONSTITUTE AN ILLEGAL BRIBE PAID TO AT LEAST ONE RUSSIAN TO OBTAIN BUSINESS THERE MR LIGHT DECLINED TO ELABORATE ON THE MATTER BUT INDIVIDUALS FAMILIAR WITH THE PROBE SAID THAT THE TWO OFFICIALS DISMISSED ARE LARRY RIFFLE THE COOPER DIVISION'S PRESIDENT AND DAN ROTHROCK COOPER'S VICE PRESIDENT OF MARKETING AND SALES MR RIFFLE SAID YESTERDAY THAT HE DIDN'T KNOW WHY HE WAS DISMISSED AND KNEW NOTHING ABOUT A JUSTICE DEPARTMENT INVESTIGATION REGARDING THE COMPANY'S ALLEGATION OF EMBEZZLEMENT HE SAID THAT'S THEIR STATEMENT I HAVE NOTHING I CAN SAY ABOUT THAT LARRY GONDELMAN A LAWYER FOR MR ROTHROCK SAID HIS CLIENT DID NOT EMBEZZLE ANY FUNDS FROM ALLIED MR LIGHT SAID THE COMPANY HAD GIVEN INFORMATION ON THE ALLEGED EMBEZZLEMENT TO THE JUSTICE DEPARTMENT WHOSE OFFICIALS WEREN'T AVAILABLE TO COMMENT ON THE MATTER LAST NIGHT IN AUGUST 1991 AND IN JANUARY OF THIS YEAR COOPER WON CONTRACTS TOTALLING SOME 32 MILLION TO SELL WORKOVER RIGS USED TO FIX OIL WELLS TO RUSSIA COOPER WON THE BUSINESS AFTER NEGOTIATING WITH A COMPANY CALLED TRADING & BUSINESS SERVICES OR TBS ACCORDING TO INDIVIDUALS FAMILIAR WITH THE MATTER TBS IS OWNED BY AND WAS ACTING ON BEHALF OF A RUSSIAN ENTITY CALLED NESTRO ZARUBEZHNEFTESTROY ACCORDING TO THESE INDIVIDUALS AN UNIDENTIFIED NESTRO OFFICIAL DEMANDED HE RECEIVE A PAYOFF BEFORE THE BUSINESS WAS AWARDED TO COOPER ATTORNEYS SAY THAT THE PAYMENT TO THE NESTRO OFFICIAL WOULD HAVE VIOLATED THE FOREIGN CORRUPT PRACTICES ACT IF NESTRO OR TBS WERE AFFILIATED WITH THAT COUNTRY'S GOVERNMENT SUCH VIOLATIONS IF PROVEN WOULD CARRY STIFF FINES AND PRISON TERMS IT WASN'T CLEAR EVEN TO THOSE WITH KNOWLEDGE OF THE MATTER WHETHER TBS OR NESTRO ARE AFFILIATED WITH THE RUSSIAN GOVERNMENT BUT IF THE ENTITIES WERE PRIVATELY OPERATED THEN PAYOFFS WOULDN'T NECESSARILY HAVE VIOLATED ANY US LAWS ALTHOUGH THEY MIGHT HAVE BREACHED ALLIED'S OWN BUSINESS POLICY INDIVIDUALS FAMILIAR WITH THE MATTER SAY THAT MR RIFFLE AND MR ROTHROCK APPARENTLY BELIEVED THAT TOP ALLIED EXECUTIVES KNEW THAT PAYMENTS WERE MADE TO TBS AND NESTRO TO WIN THE BUSINESS ALLIED'S MR LIGHT DENIED ANY SUCH KNOWLEDGE HE ALSO SAID THAT COOPER ACCOUNTS FOR LESS THAN 10 OF ALLIED'S OVERALL SALES THE COMPANY POSTED RECORD SECONDQUARTER AND SIXMONTH EARNINGS EARLY LAST WEEK BUT LATE LAST WEEK AFTER ITS STOCK DECLINED BY 6 IN NEW YORK STOCK EXCHANGE TRADING THE COMPANY SAID IT COULDN'T ACCOUNT FOR THE DROP YESTERDAY ALLIED CLOSED AT 1175 UP 75 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THAT IS FAR ABOVE ITS YEARLOW OF 150 ALLIED ALSO REACHED AGREEMENT WITH ITS SECURED LENDERS THIS YEAR TO RESTRUCTURE ITS SENIOR SECURED DEBT 9308060081 930806 WHO'S NEWS ELECTRONIC DATA SYSTEMS CORP ELECTRONIC DATA SYSTEMS CORP DALLAS H MICHAEL GLEASON WAS NAMED CORPORATE VICE PRESIDENT IN CHARGE OF THE WORLDWIDE CONSULTING OPERATIONS OF THIS GENERAL MOTORS CORP UNIT MR GLEASON 52 YEARS OLD FORMERLY WAS MANAGING PARTNER OF COOPERS & LYBRAND'S MANAGEMENTCONSULTING SERVICES GROUP IN NEW YORK IN HIS EDS POSITION WHICH IS NEW FOR THE COMPANY MR GLEASON WILL REPORT DIRECTLY TO THE CONCERN'S GOVERNING BODY THE LEADERSHIP COUNCIL WHICH IS LED BY LESTER ALBERTHAL EDS CHAIRMAN 9308060080 930806 CREDIT MARKETS TREASURY PLAYERS SHRUG OFF DROP IN GOLD PRICES AS FOCUS STAYS ON JOBS DATA REFUNDING SUPPLY BY GENE COLTER AND JACQUELINE DOHERTY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE TREASURY MARKET SHOWED LITTLE REACTION TO NEWS OF FALLING GOLD PRICES AND ENDED WITH JUST MODEST GAINS YESTERDAY INVESTORS OFTEN INTERPRET FALLING GOLD PRICES AS A SIGN OF WANING INFLATIONARY PRESSURES THUS MAKING INVESTMENTS IN BONDS MORE ATTRACTIVE INVESTORS FEAR INFLATION BECAUSE IT HURTS THE RETURN OF FIXEDINCOME SECURITIES BUT INVESTORS APPEARED TO HAVE OTHER THINGS BESIDES GOLD'S DECLINE ON THEIR MINDS YESTERDAY WITH THE JULY EMPLOYMENT REPORT DUE TO BE RELEASED TODAY AND A FLOOD OF NEW TREASURY SECURITIES SLATED TO BE SOLD NEXT WEEK THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 1/4 POINT OR MORE THAN 250 FOR A BOND WITH A 1000 FACE VALUE TO 107 26/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE DROPPED FROM 654 TO 652 THE 10YEAR NOTE ROSE LESS THAN 1/8 POINT TO 102 29/32 TO YIELD 584 DOWN FROM 585 PRICES HELD IN NARROW RANGES FOR MOST OF THE SESSION AND EDGED UP SLIGHTLY LATE IN THE DAY WHEN SOME PRECIOUSMETALS PRICES DROPPED FOR EXAMPLE GOLD STILL A CLOSELY WATCHED INFLATION BAROMETER FOR MANY IN THE BOND MARKET SETTLED 2260 AN OUNCE LOWER FOR THE DECEMBER DELIVERY CONTRACT MOST OTHER ACTIVITY THOUGH CONSISTED OF WALL STREET TRADERS AND BIG ACCOUNTS MOVING AROUND SMALL QUANTITIES OF TREASURY SECURITIES BEFORE TODAY'S MAJOR EVENT THE RELEASE OF THE JULY EMPLOYMENT REPORT BECAUSE IT IS EACH MONTH'S FIRST OFFICIAL REPORT ON THE STATE OF THE US ECONOMY IN THE PREVIOUS MONTH THE BOND MARKET PAYS CLOSE ATTENTION TO THE EMPLOYMENT REPORT THE REPORT COULD THROW BONDMARKET WATCHERS AND ANALYSTS A FEW CURVES NONFARM PAYROLLS GENERALLY ARE EXPECTED TO HAVE INCREASED BY ABOUT 175000 IN JULY ACCORDING TO WALL STREET ECONOMISTS BUT THERE WAS MORE TIME BETWEEN THE JUNE AND JULY EMPLOYMENT POLLS THAN USUAL DUE TO THE VAGARIES OF THE CALENDAR THAT FACTOR PLUS A BOOST FROM THE FEDERAL SUMMERJOBS PROGRAM COULD ARTIFICIALLY LIFT THE EMPLOYMENT NUMBER ON THE OTHER HAND TEMPORARY LAYOFFS BY GENERAL MOTORS CORP AND THE MIDWEST FLOODING MAY HAVE REDUCED JOB GAINS LAST MONTH ECONOMISTS SAY EITHER WAY MARKET WATCHERS WERE ENCOURAGED BY YESTERDAY'S MARKET TONE PARTICULARLY SINCE THE EMPLOYMENT REPORT WILL BE FOLLOWED NEXT WEEK BY A WHOPPING 385 BILLION IN NEW SUPPLY THAT WILL COME WHEN THE TREASURY UNDERTAKES ITS QUARTERLY REFUNDING AUCTIONS OF THREEYEAR NOTES 10YEAR NOTES AND 30YEAR BONDS TO PAY OFF MATURING DEBT IT'S IMPORTANT TO ACKNOWLEDGE THE RESILIENCE OF THE MARKET BEFORE AN UPCOMING REPORT AND THE TREASURY REFUNDING SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS MARKET PLAYERS ALSO HAVE AN EYE ON EVENTS IN WASHINGTON THE MARKET IS SO FOCUSED ON THE BUDGET PACKAGE THAT UNLESS THE EMPLOYMENT NUMBER IS SO OUTLANDISH THE MARKET MAY BE ABLE TO SLOUGH IT OFF SAID WILLIAM GRIGGS MANAGING DIRECTOR AT GRIGGS & SANTOW INC COMMENTS BY A FEDERAL RESERVE OFFICIAL ALSO HELPED TO NUDGE THE MARKET HIGHER ACCORDING TO A NEWS WIRE REPORT FED VICE CHAIRMAN DAVID MULLINS SAID LOWER INTEREST RATES WOULDN'T COMPLETELY OFFSET ANY DRAG ON THE ECONOMY CREATED BY THE PRESIDENT'S BUDGET PLAN LATE YESTERDAY THE MARKET RECEIVED CONFIRMATION OF THE RECENT INTEREST IN TREASURY ZEROCOUPON BONDS WHICH ARE SOLD AT A DEEP DISCOUNT TO FACE VALUE AND PAY NO INTEREST BUT ARE REDEEMED AT PAR ZEROCOUPON BONDS ARE CREATED BY SOCALLED STRIPPING OF SECURITIES OR SEPARATING THEM INTO INTERESTONLY AND PRINCIPALONLY PORTIONS A TREASURY REPORT RELEASED YESTERDAY SHOWED THAT NEARLY 8 BILLION OF TREASURY SECURITIES WERE STRIPPED IN JULY WELL ABOVE THE 566 BILLION STRIPPED IN MAY THE REPORT ALSO SHOWED THAT MOST OF THE ISSUES STRIPPED IN JUNE WERE 30YEAR BONDS THESE ARE PARTICULARLY HIGH LEVELS OF STRIPPING SAID MR KARYDAKIS OF FIRST CHICAGO CAPITAL MARKETS WE COULD CONSIDER STRIPPING AS ONE OF THE IMPORTANT FACTORS CONTRIBUTING TO THE STRENGTH OF THE BOND IN THE LAST FEW MONTHS INDEED IN THE LAST FEW DAYS INSTITUTIONAL INVESTORS SEEKING TO SQUEEZE PROFITS OUT OF THE NARROWING OF THE GAP BETWEEN SHORTTERM AND LONGTERM INTEREST RATES HAVE BEEN SNAPPING UP ZEROCOUPON BONDS BECAUSE ZEROS ARE MORE VOLATILE THAN REGULAR BONDS THEY STAND TO RISE MORE IN PRICE SHOULD LONGTERM RATES CONTINUE TO FALL OF COURSE THEIR PRICES WILL ALSO FALL MORE THAN REGULAR BONDS SHOULD RATES RISE MEANWHILE LATE YESTERDAY THE 30YEAR TREASURY BOND TO BE SOLD NEXT WEEK YIELDED 645 IN WHENISSUED TRADING DOWN FROM 648 ON WEDNESDAY WHILE THE 10YEAR NOTE YIELDED 581 DOWN FROM 583 AND THE THREEYEAR NOTE YIELDED 450 DOWN FROM 458 CORPORATE ISSUERS RETURNED TO THE BOND MARKETS YESTERDAY AFTER SEVERAL DAYS OF QUIET AS 186 BILLION OF NEW DEBT WAS PRICED NOTABLE ISSUERS INCLUDED GILLETTE CO WHICH HAD NO OUTSTANDING PUBLIC DEBT AND FORD MOTOR CO'S FORD MOTOR CREDIT CO UNIT WHICH HAD BEEN LOOKING AT THE MARKET FOR THE PAST FEW WEEKS THERE ALSO WERE OFFERINGS BY TWO TELEPHONE COMPANIES WHICH HELD COMPETITIVE BIDS AND SAW THEIR DEALS STRUGGLE IN SECONDARY TRADING TRADERS SAID SECONDARY TRADING IN THE INVESTMENTGRADE MARKET WAS BRISK THANKS TO THE VOLUME OF NEW ISSUANCE TRADERS SAID CORPORATE BONDS FOLLOWED COMPARABLE TREASURYS HIGHER RISING IN PRICE BY ABOUT THE SAME EXTENT TRADING IN THE HIGHYIELD MARKET REMAINED RELATIVELY LIGHT WITH PRICES ENDING UNCHANGED THERE WERE ONLY TWO HIGHYIELD DEALS PRICED AND INVESTORS CONTINUED TO FOCUS ON THE COMING CALENDAR OF DEALS GILLETTE'S 300 MILLION TWOPART ISSUE OF NOTES REPORTEDLY SOLD WELL TRADERS SAID THE COMPANY HAS NO OUTSTANDING DEBT AND INVESTORS ESPECIALLY INSURANCE COMPANIES WANTED TO ADD A NEW NAME TO THEIR PORTFOLIOS GILLETTE PRICED 150 MILLION OF THREEYEAR NOTES AT 9967 TO YIELD 487 035 PERCENTAGE POINT ABOVE THE WHENISSUED THREEYEAR TREASURY THE SECOND CLASS 150 MILLION OF 10YEAR NOTES WAS PRICED AT 9993 TO YIELD 626 045 PERCENTAGE POINT ABOVE WHENISSUED 10YEAR TREASURYS BOTH PARTS ARE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP AND ARE NONCALLABLE THE OFFERING WAS SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC SUCH IS INVESTOR DEMAND FOR HIGHER YIELDS THESE DAYS THAT THE YIELD SPREADS ABOVE COMPARABLE TREASURYS FOR LOWRATED INVESTMENTGRADE CORPORATE DEBT LIKE GILLETTE'S HAVE NARROWED AS MUCH AS 015 PERCENTAGE POINT ACCORDING TO TRADERS INVESTORS ARE ALSO ATTRACTED TO LOWRATED INVESTMENTGRADE BONDS BECAUSE THEY EXPECT THE FORTUNES OF MANY COMPANIES TO IMPROVE AS THE ECONOMY SLOWLY RECOVERS THE RESULTING IMPROVEMENTS COULD RESULT IN CREDITRATING UPGRADES WHICH WOULD PROVIDE A WINDFALL TO INVESTORS IN THE FORM OF SIGNIFICANT PRICE GAINS PRICES OF MUNICIPAL BONDS ENDED 1/8 POINT TO 1/4 POINT HIGHER IN SECONDARY TRADING THE WASHINGTON PUBLIC POWER SUPPLY SYSTEM'S 570 REVENUE REFUNDING BONDS OF 2017 FOR NUCLEAR PROJECT NO 1 ENDED 1/4 FIRMER AT 98 1/4 TO YIELD 582 THE ILLINOIS HEALTH FACILITIES AUTHORITY'S 6 REVENUE REFUNDING BONDS OF 2023 ENDED 1/4 HIGHER AT 98 5/8 TO YIELD 609 THE NEWISSUE SECTOR WAS RATHER QUIET THE LARGEST ISSUE PRICED WAS THE JACKSONVILLE FLORIDA ELECTRIC AUTHORITY'S 492 MILLION DEAL FOR ISSUE TWO SERIES 10 REFUNDING REVENUE BONDS FOR THE ST JOHNS RIVER POWER PARK SYSTEM A LEHMAN BROTHERS GROUP GAVE THE BONDS YIELDS THAT RANGE FROM 250 IN OCTOBER 1993 TO 565 IN 2013 MOODY'S INVESTORS SERVICE INC HAS RATED THE OFFERING DOUBLEA1 AND STANDARD & POOR'S CORP HAS ASSIGNED A DOUBLEA RATING SEPARATELY THE MOOD ABOUT THE MUNICIPAL BOND MARKET REMAINS QUITE BULLISH AS CONGRESS PREPARES TO VOTE ON THE FEDERAL BUDGET AGREEMENT THAT CONTAINS HEFTY INCOME TAX INCREASES FOR WEALTHY WORKERS WITH TAX BRACKETS RISING TAXFREE MUNICIPAL BONDS ARE THE BEST PLAY IN TOWN FOR MANY INVESTORS STAGGER MATURITIES AND KEEP A GOOD PORTION OF THE FUNDS SHORTTERM WRITES BERNARD SCHNITZER OF JB HANAUER & CO IN A NEWSLETTER PRICES OF MORTGAGE SECURITIES FINISHED SLIGHTLY HIGHER REFLECTING CONTINUING DEMAND FOR CURRENTCOUPON SECURITIES A STEEPER YIELD CURVE HAS MADE IT PROFITABLE ONCE AGAIN FOR DEALERS TO BUY CURRENTCOUPON SECURITIES TO REPACKAGE AND SELL AS REALESTATE MORTGAGE INVESTMENT CONDUITS BECAUSE MOST REMIC CLASSES ARE TIED TO SHORTTERM TREASURYS THE LOW YIELDS ON THOSE SECURITIES RELATIVE TO LONGERDATED ISSUES PROVIDE AN INCENTIVE TO UNDERWRITE NEW TRANSACTIONS THE DEMAND FOR COLLATERAL HOWEVER HAS PUSHED THE YIELD SPREAD BETWEEN CURRENTCOUPON SECURITIES AND THE TREASURY'S 10YEAR NOTE TO SOME OF THE NARROWEST LEVELS OF THE YEAR SAID STEVE PLAUSTEINER HEAD OF THE MORTGAGE GROUP AT SMITH BARNEY HARRIS UPHAM & CO DEALERS AND INVESTORS HAD EXPECTED SPREADS TO WIDEN CREATING A BUYING OPPORTUNITY FOR CURRENT COUPONS WHEN THE YIELD CURVE FLATTENED LAST WEEK BUT YIELDS DIDN'T BUDGE THIS WEEK THE CURVE HAS STEEPENED IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 ISSUES FOR AUGUST DELIVERY ENDED 1/8 HIGHER AT 99 13/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 65 ISSUES FINISHED 7/32 HIGHER AT 99 15/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 ISSUES FINISHED 7/32 HIGHER AT 99 12/32 THOMAS T VOGEL JR CONTRIBUTED TO THIS ARTICLE 9308060079 930806 LEISURE & ARTS BOOKSHELF WOMEN'S UNCERTAIN LIVES AND LOVES BY LEE LESCAZE EACH OF THE THREE NOVELLAS OF MARY GORDON'S THE REST OF LIFE VIKING 257 PAGES 22 GIVES US A WOMAN'S LOVE STORY THEY ARE BEAUTIFULLY WRITTEN AND MOVING AS GOOD AS MS GORDON'S WIDELY PRAISED EARLIER NOVELS WHICH INCLUDE FINAL PAYMENTS AND THE COMPANY OF WOMEN THE FIRST TWO NOVELLAS ARE STORIES OF MODERN TIMES OF LOVES HEMMED IN AND BLIGHTED BY UNCERTAINTY AT A CERTAIN AGE AS ONE CHARACTER REMARKS THE IDEA OF LIVING FOR LOVE WHICH ONCE SEEMED SO DESIRABLE TURNS INTO A JOKE LIFE IS TOO COMPLICATED TOO LIMITING TOO DIFFICULT THE PROTAGONISTS ARE WELL INTO THEIR 40S OLD ENOUGH TO SEE THE JOKE CLEARLY IN LIVING AT HOME A DOCTOR WORKS WITH AUTISTIC CHILDREN AND LIVES IN LONDON WITH AN ITALIANBORN JOURNALIST WHOSE CAREER RESEMBLES THAT OF RYSZARD KAPUSCINSKI THE CONNOISSEUR OF THIRD WORLD REVOLUTION SHE HAS MARRIED AND LEFT THREE HUSBANDS AND MIGHT OUTWARDLY SEEM A RESOURCEFUL TOUGH INDEPENDENT WOMAN THE PROBLEM IS LOVE SHE DOESN'T LIVE FOR IT BUT SHE DOESN'T WANT TO LIVE WITHOUT IT SHE DWELLS ON UNCERTAINTY ABOUT THE FUTURE IN THE TROUBLED CHILDREN SHE WORKS WITH AND THEN IN THE SENILE DEMENTIA OF HER MOTHER SHE IS REMINDED OF HOW DIFFICULT IT IS TO MANAGE ORDINARY LIFE THE CHILDREN WHOM I TREAT HAVE TROUBLE UNDERSTANDING THE IDEA OF WHAT MAKES UP A PERSON A PERSON CONSISTENTLY RECOGNIZABLE CONSISTENTLY THE SAME THE ODD THING TO ME IS HOW WHOLEHEARTEDLY THE REST OF US PRETEND TO UNDERSTAND SHE THINKS WHEN HER LOVER IS HOME SHE IS PASSIONATELY ATTRACTED THE JOURNALIST SEEMS HAPPY TOO BUT ONLY FOR A WHILE THE LONGEST STRETCH HE'S GONE BEFORE PLANNING HIS NEXT TRIP IS 11 WEEKS IF HE WOULD PROMISE ME HE WOULDN'T DIE AWAY FROM ME IN ONE OF THE BAD DEATH SPOTS OF THE WORLD I WOULDN'T MIND HIS GOING SHE THINKS SHE HAS CONSIDERED LEAVING HIM SHE HAS CONSIDERED ALL THE TIMES HE HAS BEEN SELFISH AND NEGLECTFUL BUT DESIRE SATISFIED DESIRE BINDS HER SHE WON'T LEAVE BECAUSE HE MAKES HER LIFE MORE ABUNDANT THE 48YEAROLD NARRATOR OF IMMACULATE MAN HAS ALSO READILY COMPROMISED FOR LOVE FOR A MORE ABUNDANT LIFE DO YOU KNOW WHAT IT'S LIKE WHEN YOU GIVE UP THE IDEA THAT YOU'LL EVER AGAIN BE PRIZED IN A WAY IT'S NOT SO TERRIBLE BUT ALL THE SONGS THE STORIES ARE ABOUT SOMEONE ELSE SHE EXPECTED TO LIVE THAT WAY THE REST OF HER LIFE LIVING KNOWING YOUR BODY IS OF NO CONCERN TO ANYONE EXCEPT YOURSELF INSTEAD SHE HAS STUMBLED INTO A LOVE AFFAIR WITH A PRIEST HE WAS A VIRGIN AT AGE 43 SHE MARVELS AT WHAT IT IS LIKE FOR BOTH OF THEM FOR HIM UNIQUE INCOMPARABLE FOR HER FULL OF DOUBTS SHE IS A WOMAN OF THE ERA OF DECLINING EXPECTATIONS SMART BUT NOT SOPHISTICATED SHE WORKS WITH ABUSED WOMEN AND SEES THE INSTINCT FOR ABUSE ALL AROUND HER ALL WE NEED TO SEE IS THE HINT OF A CRINGE AND WE BEGIN TO RAISE OUR ARM SHE TELLS US DOES HER PRIEST REALLY LOVE HER OR WAS SHE SIMPLY A FEMALE BODY AT THE RIGHT PLACE AT THE RIGHT TIME MORE LIKELY THE LATTER SHE FEARS NOW THAT HE KNOWS SEX SHE FEARS OTHER WOMEN WILL TEMPT HIM SHE HAS DECIDED HE SHOULD REMAIN A PRIEST SHE DOESN'T NEED TO MARRY HIM BUT NEEDS DESPERATELY TO KEEP HIM ALTHOUGH A COMMON ANXIETY OVER WHAT HAPPENS NEXT IN LIFE LINKS THE WOMEN OF IMMACULATE MAN AND LIVING AT HOME MS GORDON HAS CREATED TWO VERY DIFFERENT CHARACTERS THE DOCTOR HAS DESIGNED HER LIFE WITH A CERTAIN BRAVADO SHE IS SUCCESSFUL AND LIVES WELL STILL SHE ENVIES A SPIRIT OF ADVENTURE SHE SEES MORE IN HER TWO SONS' GIRLFRIENDS THAN IN WOMEN OF HER GENERATION WHEN HER LOVER VISITS HER WORKPLACE HE WEEPS HE WANTS TO WRITE ABOUT HER WORK YOU'RE THE REAL HERO THE ACCLAIMED JOURNALIST AND DANGERLOVER REMARKS SHE FORBIDS HIM TO WRITE SUCH AN ARTICLE IN HER EYES HER WORK ISN'T HEROIC OR SELFSACRIFICING SHE SAYS SHE UNDERSTANDS WHAT IT IS THESE CHILDREN FEAR FOR SELFSACRIFICE MS GORDON GIVES US PAOLA THE PROTAGONIST OF HER THIRD NOVELLA THE REST OF LIFE PAOLA IS RETURNING AFTER 63 YEARS IN THE US TO TURIN WHERE A TERRIBLE LONGSECRET EVENT CHANGED HER LIFE AT AGE 15 IT COST HER THE TWO MEN SHE LOVEDHER FATHER AND HER LOVER AS SHE APPROACHES TURIN SHE WONDERS WHETHER SHE SHOULD ATTEMPT TO TELL HER COMPANIONS ONE OF HER THREE SONS AND HIS FIANCEE HER SECRET AFTER SO MANY YEARS SHE WANTS TO SAY I WOULD LIKE TO TELL YOU SOMETHING ABOUT ME I AM NOT THE PERSON YOU THINK SINCE THE TRAGEDY HER LIFE HAS BEEN A NUMBNESS PEOPLE LIVED A LIFE OUTSIDE ME THEY WERE SHADOWS I HAVE HELPED THE SICK COOKED MEALS OPENED MY LEGS OVER AND OVER TO A MAN KEPT HOUSE AND CARED FOR CHILDREN EVERYONE EVERYTHING HAS BEEN A SHADOW TO ME PAOLA IS A MEMORABLE CHARACTER HER REVERIE A SPELLBINDING STORY HER BASIC QUESTION IS WHETHER SHE WAS RIGHT TO CHOOSE LIFE EVEN THE LIMITED LIFE SHE HAS HADOVER EARLY DEATH SHE HAS LIVED REPRESSED BY GUILT AT BEING ALIVE NOW BACK IN TURIN THE QUESTION BECOMES URGENT MS GORDON'S WOMEN DON'T OFTEN RECEIVE UNAMBIGUOUS ANSWERS BUT THEY EXAMINE LIFE THEY ARE WONDERFUL AT ASKING QUESTIONS 9308060077 930806 ABREAST OF THE MARKET GOLD OIL STOCK SELLOFF DEPRESSES MARKET PREOCCUPIED WITH BUDGET BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS FELL AS A SELLOFF IN GOLD AND OIL SHARES ENLIVENED A MARKET OTHERWISE DISTRACTED BY THE BUDGET VOTE THE DOW JONES INDUSTRIAL AVERAGE FELL 308 POINTS TO 354897 STANDARD & POOR'S 500STOCK INDEX EASED 041 POINT TO 44813 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LOST 039 TO 24854 BUT THE DOW JONES UTILITY AVERAGE RESUMED ITS ADVANCE AFTER SUSTAINING A SLIGHT SETBACK WEDNESDAY THE INDEX CONSIDERED A LEADING INDICATOR OF STOCK PRICES ADDED 079 TO 25204 THE THIRD RECORD THIS WEEK VOLUME ON THE NEW YORK STOCK EXCHANGE CLIMBED TO 250 MILLION SHARES FROM 230 MILLION SHARES WEDNESDAY DECLINING ISSUES SURPASSED ADVANCERS 1055 TO 896 TRADING IN OIL STOCKS ALSO WAS ACTIVE CHEVRON SLIPPED 3/8 TO 85 3/8 EXXON EASED 1/2 TO 64 MOBIL LOST 1 1/8 TO 71 1/8 AND ATLANTIC RICHFIELD SLUMPED 1 1/4 TO 115 1/8 JOSEPH MCALINDEN CHIEF MARKET STRATEGIST AT DILLON READ SAID THAT WHILE TYPICALLY A DROP IN OIL PRICES IS A BOON FOR AIRLINES THAT WASN'T THE CASE YESTERDAY REPORTS OF ANOTHER FALL FARE WAR TRIGGERED BY DELTA AIR LINES SENT A NUMBER OF AIRLINES STOCKS INTO A TAILSPIN UAL THE PARENT OF UNITED AIRLINES PLUNGED 2 5/8 TO 142 AMR THE PARENT OF AMERICAN AIRLINES SANK 1 7/8 TO 63 1/8 DELTA AIR FELL 7/8 TO 49 1/2 AND USAIR GROUP DROPPED 1/2 TO 16 5/8 THE LOSSES HELPED DRIVE THE DOW JONES TRANSPORTATION AVERAGE 1988 POINTS LOWER TO 159287 MR MCALINDEN SAID THAT HE EXPECTS A RELATIVELY MILD CORRECTION IN THE STOCK MARKET OVER THE NEXT FEW DAYS THAT COULD DRIVE THE DOW INDUSTRIALS ABOUT 1 LOWER WITH THE FLOODWATERS RECEDING THE ECONOMY EXPANDING THOUGH NOT VIGOROUSLY AND CONGRESS FINALLY PASSING THE BUDGET PLAN PEOPLE ARE VERY OPTIMISTIC ABOUT INFLATION SAID MR MCALINDEN AND THAT COULD BE OMINOUS FOR MANY OF THE COMMODITYBASED CYCLICAL STOCKS THAT COMPRISE THE DOW HE SAID RETAIL STOCKS WERE MIXED AFTER MAJOR CHAIN STORES REPORTED JULY SALES DATA DAYTON HUDSON ADDED 5/8 TO 68 7/8 WALMART EDGED UP 3/8 TO 25 7/8 AND SEARS ROEBUCK GAINED 3/8 TO 53 1/8 AFTER RISING 2 POINTS BEFORE THE REPORT WEDNESDAY BUT JC PENNEY TUMBLED 2 1/4 TO 43 1/2 THE RETAILER SAID THAT SAMESTORE SALES FELL 31 LAST MONTH THE TURMOIL OVER TOBACCO PRICING PUT PRESSURE ON THOSE STOCKS PHILIP MORRIS SLIPPED 5/8 TO 46 3/8 LOEWS FELL 1/8 TO 88 AND RJR NABISCO DROPPED 1/8 TO 4 7/8 A NEW 52WEEK LOW IN TRADING ON THE NEW YORK STOCK EXCHANGE MOTOR COACH INDUSTRIES WAS THE SECOND MOST ACTIVE STOCK ON THE BIG BOARD DECLINING 3/4 TO 12 1/4 AN INITIAL PUBLIC OFFERING OF 20 MILLION COMMON SHARES OF THE DIAL CORP UNIT WAS PRICED LATE WEDNESDAY AT 13 EACH THROUGH UNDERWRITERS LED BY SALOMON BROTHERS AND LEHMAN BROTHERS INTELLICALL ROSE 3/4 TO 11 1/8 THE MAKER OF PAY TELEPHONES SAID IT HAS SOLD THE ASSETS OF ITS CALLPROCESSING BUSINESS TO MURDOCK REMMERS & ASSOCIATES FOR 62 MILLION MERRYGOROUND ENTERPRISES PLUNGED 1 TO 8 3/8 THE SPECIALTY FASHION STORES SAID SAMESTORE SALES FELL 10 FOR THE FOUR WEEKS ENDED JULY 31 RAYMOND JAMES LOWERED ITS RATING ON THE STOCK TO HOLD FROM BUY WR GRACE SANK 2 1/8 TO 37 3/4 THE BOCA RATON FLA SPECIALTY CHEMICAL CONCERN SAID THAT THE FOOD AND DRUG ADMINISTRATION HAS BLOCKED THE IMPORT INTO THE US OF TWO DEVICES USED IN CONNECTION WITH BLOOD DIALYSIS THE DEVICES ARE MADE IN THE FIRM'S OVERSEAS FACTORIES GRACE SAID THE FDA'S ACTION RELATES TO DOCUMENTATION PROCEDURES AND PRACTICES RATHER THAN THE DEMONSTRATED SAFETY OR QUALITY OF GRACE'S PRODUCTS EASTMAN KODAK EDGED UP 3/8 TO 55 3/8 THE CAMERA AND CHEMICAL CONCERN IS SET TO MAKE AN IMPORTANT ANNOUNCEMENT TODAY IN THIRDMARKET TRADING KODAK WAS QUOTED AT 56 ADVANCED MICRO DEVICES JUMPED 1 1/8 TO 27 SALOMON BROTHERS ISSUED A BUY RATING ON THE COMPANY AND FOUR OTHER SEMICONDUCTOR CONCERNS THE OTHERS INCLUDED TEXAS INSTRUMENTS WHICH LEAPED 1 TO 74 1/4 AND NATIONAL SEMICONDUCTOR WHICH ROSE 5/8 TO 17 1/8 AFTER THE MARKET CLOSED JACK ECKERD SOLD 45 MILLION COMMON SHARES IN AN INITIAL PUBLIC OFFERING WHICH WAS PRICED AT 14 A SHARE THROUGH UNDERWRITERS LED BY MERRILL LYNCH THE LARGO FLA FIRM WHICH OPERATES NEARLY 1700 DRUG STORES WILL USE PROCEEDS FROM THE SALE TO REPAY BANK DEBT THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX FELL 089 OR 020 TO 43553 THERE WERE 315 DECLINERS AND 238 GAINERS 9308060076 930806 GLENFED BANK UNIT AMENDS THE TERMS OF RECAPITALIZATION BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL GLENDALE CALIF GLENDALE FEDERAL BANK A UNIT OF GLENFED INC AMENDED THE TERMS OF ITS PLANNED RECAPITALIZATION IN AN EFFORT TO KEEP WARY INSTITUTIONAL INVESTORS FROM BOLTING FROM THE PLAN OFFICIALS OF THE THRIFT WHICH IS FIGHTING TO RAISE CASH AND STAY AFLOAT SAID IT WAS CAUGHT IN THE TURBULENCE CAUSED BY LAST WEEK'S DISCLOSURE OF CONTINUING HEAVY REALESTATE LOSSES AT ANOTHER SOUTHERN CALIFORNIA THRIFT CALIFORNIA FEDERAL BANK CALFED'S PROBLEMS SAID RICHARD A FINK GLENFED'S SENIOR EXECUTIVE VICE PRESIDENT CAUSED SOME HEIGHTENED MARKET CONCERN ABOUT THRIFT EQUITIES THAT DISRUPTED OUR CAPITALRAISING EFFORT MR FINK SAID CALFED'S DISCLOSURE OF ITS PROBLEMS CAUSED INVESTORS TO TAKE ANOTHER LOOK AND QUESTION THE PRICING OF OUR TRANSACTION AS A RESULT GLENFED SAID IT WAS TAKING STEPS TO SWEETEN ITS RECAPITALIZATION OFFER TO BIG INVESTORS WILLING TO LOCK INTO THE PLAN TO RAISE 425 MILLION GLENFED HAS ALREADY ANNOUNCED THAT IT WAS PUSHING BACK THE EXPIRATION DATE FOR A DEBTFOREQUITY SWAP THAT IS A KEY ELEMENT OF THE RECAPITALIZATION AS PREVIOUSLY REPORTED THE THRIFT HAS RESCHEDULED A SPECIAL SHAREHOLDERS MEETING AUG 17 TO VOTE ON THE PLAN UNDER THE AMENDED PLAN GLENDALE FEDERAL SAID IT IS INCREASING THE PROPORTION OF CONVERTIBLE PREFERRED STOCK IT IS OFFERING AS PART OF THE TOTAL CAPITAL PACKAGE THERE WAS A LOT OF DEMAND FOR THE CONVERTIBLE PREFERRED SO WE'VE RAISED THAT PART OF THE PACKAGE MR FINK SAID IN ADDITION THE THRIFT SAID IT IS LOWERING THE SUBSCRIPTION PRICE FOR A RIGHTS OFFERING FOR ITS NEW BANK COMMON SHARES TO 9 A SHARE FROM THE ORIGINAL 10 PRICE GLENFED ALSO SAID IT PLANS TO ISSUE 109 MILLION WARRANTS FOR ADDITIONAL BANK COMMON STOCK THE LOWER SUBSCRIPTION PRICE IS DESIGNED TO ENTICE INSTITUTIONAL INVESTORS TO COME UP WITH THE ENTIRE 425 MILLION THE THRIFT IS SEEKING GLENFED OFFICIALS HAD EXPECTED INSTITUTIONAL INVESTORS TO ONLY MAKE UP 375 MILLION OF THE OFFERING UNDER THE ORIGINAL PLAN TO GET THAT COMMITMENT FROM THE INSTITUTIONAL INVESTORS WE'RE GOING TO HAVE TO GIVE THEM A LITTLE MORE OF THE COMPANY MR FINK SAID THAT TRADEOFF HE SAID WILL MEAN REDUCED TERMS FOR THE THRIFT'S REMAINING PREFERRED SHAREHOLDERS DEBENTURE HOLDERS AND HOLDERS OF COMMON SHARES 9308060075 930806 HERBALIFE SHARES TUMBLE BY 158 ON FDA CONCERNS BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL INGLEWOOD CALIF HERBALIFE INTERNATIONAL INC SHARES TUMBLED 158 ON NEWS THE FOOD AND DRUG ADMINISTRATION MAY FORCE THE COMPANY TO REFORMULATE A WEIGHTLOSS PRODUCT HERBALIFE SAYS CONTRIBUTES SIGNIFICANTLY TO US SALES THE MAKER OF HEALTH AND NUTRITIONAL PRODUCTS MADE THE DISCLOSURE IN A SECURITIES AND EXCHANGE COMMISSION REGISTRATION FOR AN OFFERING OF FIVE MILLION COMMON SHARES IN NATIONAL OVERTHECOUNTER TRADING HERBALIFE SLUMPED 2625 TO 14 SPECIFICALLY NEW FDA PLANS TO REGULATE DIETARY SUPPLEMENTS COULD REQUIRE HERBALIFE TO REFORMULATE ITS THERMOJETICS WEIGHTLOSS PRODUCT WITH REDUCED EPHEDRINE LEVELS THE COMPANY SAID EPHEDRINE OCCURS NATURALLY IN A THERMOJETICS INGREDIENT KNOWN AS MA HUANG A CHINESE HERB AN FDA OFFICIAL SAID THAT THE AGENCY HAS REPEATEDLY PUBLICIZED CONCERNS ABOUT THE HERB AND HAS SENT INFORMATION TO CONGRESS ABOUT IT SERIOUS ADVERSE EFFECTS INCLUDING HYPERTENSION PALPITATIONS NEUROPATHY MYOPATHY PSYCHOSIS STROKE AND MEMORY LOSS HAVE BEEN REPORTED TO THE FDA WITH PRODUCTS CONTAINING MA HUANG THE OFFICIAL SAID HE SAID HE WASN'T AWARE OF ANY DIRECT INQUIRIES INVOLVING HERBALIFE SHIPMENTS OF THERMOJETICS WERE SUSPENDED IN CANADA THIS YEAR WHILE THE CANADIAN GOVERNMENT STUDIED THE LEVELS OF NATURAL EPHEDRINE IN THE PRODUCT ACCORDING TO HERBALIFE'S SEC FILING CANADIAN AUTHORITIES SAID THEY WOULD ACCEPT A PRODUCT WITH REDUCED EPHEDRINE LEVELS AND HERBALIFE RESUMED SHIPPING THE PRODUCT TO CANADA IN JUNE THE COMPANY SAID A SPOKESMAN FOR HERBALIFE SAID CANADIAN SALES OF THERMOJETICS WERE CURTAILED FOR ABOUT THREE WEEKS BUT THAT THE ACTION WASN'T MATERIAL TO HERBALIFE'S REVENUE OR EARNINGS WE REFORMULATE OUR PRODUCTS ALL THE TIME HE SAID ADDING THAT ANY THERMOJETICS REFORMULATION WOULD BE AS GOOD AS THE EXISTING PRODUCT IF NOT BETTER HE DESCRIBED MA HUANG AS AN IMPORTANT INGREDIENT BUT ONE OF SEVERAL IN THERMOJETICS A TWOTABLET TREATMENT IF THERMOJETICS COMES UNDER FDA SCRUTINY HERBALIFE MIGHT HAVE TO REFORMULATE IT WITH REDUCED EPHEDRINE LEVELS OR A SUBSTITUTE THE FILING SAID WHILE HERBALIFE BELIEVES THE PRODUCT COULD BE REFORMULATED IF REQUIRED THERE CAN BE NO ASSURANCE IN THIS REGARD THE COMPANY SAID ADDING THAT ANY OF ITS PRODUCTS COULD BE THE SUBJECT OF ADVERSE PUBLICITY OR REGULATION THERMOJETICS SALES CONTRIBUTED SIGNIFICANTLY TO US SALES INCREASES IN 1992 AND THE FIRST QUARTER OF 1993 THE SEC FILING SAID THE SPOKESMAN WOULDN'T BE MORE SPECIFIC SAYING ONLY THAT US SALES MADE UP ABOUT 21 OF REVENUE LAST YEAR HERBALIFE HAD SECONDQUARTER NET INCOME OF 115 MILLION OR 42 CENTS A SHARE ON SALES OF 977 MILLION 9308060074 930806 WHAT'S NEWS WORLDWIDE SERBS PLEDGED TO OPEN SARAJEVO AS THE US URGED MUSLIMS TO REJOIN TALKS BOSNIAN SERB LEADERS FACING THE THREAT OF NATO AIR STRIKES PROMISED TO LIFT THE 16MONTH SIEGE OF THE CAPITAL AND WITHDRAW FROM TWO CONTESTED MOUNTAINS IF THE SERBS KEEP THEIR WORD THEY WOULD MEET TERMS SET BY THE MUSLIMLED GOVERNMENT FOR RETURNING TO GENEVA PEACE TALKS A US OFFICIAL SAID BOSNIA'S MUSLIM PRESIDENT SHOULD REJOIN THE NEGOTIATIONS WARNING THAT IF IT LOOKS AS THOUGH THE PROSPECT OF NATO AIR SUPPORT IS CAUSING HIM TO BACKSLIDE AND SUBSTANTIALLY TOUGHEN HIS POSITION THAT WOULD MAKE IT MUCH LESS LIKELY THAT NATO WOULD ACT CROATIAN OFFICIALS CHARGED SERBS WITH TRYING TO PROVOKE A NEW WAR AFTER SERB FORCES SHELLED A BRIDGE LINKING THE DALMATIAN COAST TO THE REST OF THE COUNTRY JAPANESE POLITICAL SQUABBLING FORCED A DELAY IN A VOTE FOR A PRIME MINISTER UNTIL TODAY AT THE EARLIEST THOUGH MORIHIRO HOSOKAWA HEAD OF A SEVENPARTY COALITION STILL IS EXPECTED TO WIN HOSOKAWA WHO SHRUGGED OFF THE SETBACK WOULD BE THE FIRST LEADER IN 38 YEARS NOT TO COME FROM THE LIBERAL DEMOCRATIC PARTY TWO HUGE EXPLOSIONS ROCKED CHINA'S ECONOMIC DEVELOPMENT ZONE OF SHENZHEN LEAVING 70 PEOPLE DEAD AND 200 INJURED THE BLASTS AT A WAREHOUSE AND A NATURALGAS STORAGE AREA WERE FELT THROUGHOUT THE SOUTHERN CITY WHICH SHARES A BORDER WITH HONG KONG A FIRE WAS STILL RAGING 12 HOURS AFTER THE INITIAL BLAST THE UN IS OWED MORE THAN 2 BILLION IN DUES AND IS FACING ITS WORSTEVER FINANCIAL CRISIS WITH ONLY ENOUGH CASH TO LAST ABOUT A MONTH SECRETARYGENERAL BOUTROSGHALI HAS TOLD MEMBERS IN LETTERS TO MEMBER GOVERNMENTS HE SAID UN CASH RESERVES AMOUNT TO 380 MILLION WHILE MONTHLY EXPENSES TOTAL 310 MILLION STE GENEVIEVE MO RESIDENTS FORTIFIED THEIR MAKESHIFT GRAVELANDSANDBAG LEVEES WHILE THE MISSISSIPPI RIVER SURGED TOWARD A RECORD CREST THERE DOWNSTREAM THE TOWN OF PRAIRIE DU ROCHER ILL WAS STILL DRY AFTER AN AGGRESSIVE EFFORT TO FEND OFF FLOODING BY TEARING DOWN PART OF A LEVEE AND DIVERTING THE SURGING RIVER WATER OREGON'S LEGISLATURE APPROVED A DIMEAPACK CIGARETTE TAX TO PAY FOR MEDICAID COVERAGE FOR 120000 POOR PEOPLE AND GAVE BUSINESSES UNTIL 1997 TO BEGIN PROVIDING HEALTH COVERAGE FOR 280000 UNINSURED WORKERS THE LAWMAKERS WRANGLED INTO THE EARLY MORNING HOURS YESTERDAY BEFORE FINALLY AGREEING TO THE 1997 DEADLINE BLACK LEADER MANDELA LASHED OUT AT SOUTH AFRICA'S WHITE POLITICIANS AND POLICE AND APPEALED FOR BLACK UNITY TO END TOWNSHIP VIOLENCE THAT HAS KILLED OVER 130 BLACKS THIS WEEK IN AN UNUSUALLY MILITANT SPEECH THE AFRICAN NATIONAL CONGRESS LEADER ACCUSED MOST WHITES IN THE GOVERNMENT AND SECURITY FORCES OF INDIFFERENCE TO BLACK DEATHS AN ISRAELI CABINET MINISTER MET SECRETLY WITH A TOP ADVISER OF PLO CHIEF ARAFAT IN LATE JULY IN AN EFFORT TO BREAK THE DEADLOCK IN THE MIDEAST TALKS ACCORDING TO RADIO REPORTS IN ISRAEL THE MEETING WAS THE HIGHESTLEVEL CONTACT YET BETWEEN ISRAEL AND THE PLO ISRAEL HAS REFUSED TO NEGOTIATE DIRECTLY WITH THE PLO SAYING IT IS A TERRORIST GROUP SECRETARY OF STATE CHRISTOPHER DECIDED TO RETURN TO SYRIA FOR DISCUSSIONS TODAY WITH PRESIDENT ASSAD IN DAMASCUS CHRISTOPHER ASSUMING A MORE ACTIVE MEDIATOR'S ROLE IN THE MIDEAST MET TWICE YESTERDAY IN JERUSALEM WITH ISRAEL'S RABIN ANGOLAN GOVERNMENT PLANES LAUNCHED A BOMBING ATTACK ON REBELHELD HUAMBO AND VOWED TO KEEP UP THE CAMPAIGN UNTIL THE UNITA GUERRILLAS ARE EXPELLED FROM THE CENTRAL CITY THE REBELS SAID THEY WOULD FIGHT BACK RED CROSS OFFICIALS WHOSE OFFICE IN HUAMBO WAS DESTROYED BY ROCKETS CALLED FOR A HALT TO ATTACKS AGAINST CIVILIANS THE JUSTICE DEPARTMENT IS PURSUING ITS INVESTIGATION OF ALLEGED WRONGDOING IN THE WHITE HOUSE TRAVEL OFFICE BUT FIVE FIRED EMPLOYEES WILL RECEIVE HELP IN GETTING OTHER FEDERAL JOBS THE FIVE DISMISSED IN MAY ALONG WITH THE OFFICE'S MANAGER AND DEPUTY MANAGER WERE CLEARED OF FINANCIAL WRONGDOING IN AN INTERNAL WHITE HOUSE REVIEW EIGHT NAZI DEATH CAMP SURVIVORS ASKED THE ISRAELI SUPREME COURT TO TRY JOHN DEMJANJUK ON NEW CHARGES AND CLAIMED HIS FREEDOM WOULD SIGNAL FORGIVENESS TO NAZI CRIMINALS EARLIER THIS WEEK AN OHIO COURT SAID HE SHOULD BE FREED BY ISRAEL AND RETURNED TO THE US BUT ISRAELI OFFICIALS SAID THE RULING WASN'T BINDING ON THEM 9308060073 930806 MARKETING & MEDIA PHILIP MORRIS NOW DECIDES AGAINST CIGARETTE PRICE CUT NEW YORK IN A MOVE THAT WOULD MAKE A FLIPFLOPPING POLITICIAN PROUD PHILIP MORRIS COS ONCE AGAIN CHANGED ITS MIND ON CIGARETTE PRICING A DAY AFTER IT SAID IT WAS CUTTING DISCOUNT CIGARETTE PRICES PHILIP MORRIS SAID THAT IT WAS REINSTATING PRICE INCREASES IT ANNOUNCED TWO WEEKS AGO PHILIP MORRIS'S LATEST CHANGE OF HEART CAME AFTER RJR NABISCO HOLDINGS CO SAID THAT IT WOULD REFUSE TO MATCH PHILIP MORRIS'S LATEST PRICE CUT RECENT EVENTS CLEARLY INDICATE THAT THE CIGARETTE PRICING SITUATION IS VERY DYNAMIC A PHILIP MORRIS SPOKESWOMAN SAID 9308060072 930806 PAINFUL ADJUSTMENT ARGENTINES DISCOVER THERE IS A DOWNSIDE TO FOILING INFLATION STABILITY CURBS THE GOOD LIFE MAKES PARIS' OF PAMPAS COSTLIER THAN REAL THING LAYOFFS AND BROKEN DREAMS BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL BUENOS AIRES WHEN PATRICIO HICKEY TALKS OF THE DISAPPEARED HE ISN'T THINKING OF THE THOUSANDS OF PEOPLE WHO WERE TAKEN AWAY NEVER TO RETURN BY ARGENTINA'S MILITARY RULERS WHO GOVERNED FROM 1976 TO 1983 HE MEANS THE AFFLUENT FOLK WHO HAVE VANISHED FROM HIS GOLF CLUB IN THE 1990S IT WASN'T REPRESSION THAT DID THEM IN ACCORDING TO MR HICKEY A FINANCIAL STRATEGIST IT WAS ARGENTINA'S REFORMS ITS NEW ECONOMIC STABILITY IN THE DAYS OF SKYHIGH INFLATION AND INTEREST RATES THE CLUB WAS FILLED WITH GUYS WHO EARNED 5000 A MONTH IN THE MONEY MARKETS THEY WORE FLASHY SHOES DRANK THE BEST ARGENTINE WINES HE SAYS THEN ARGENTINA TAMED INFLATION THROUGH A SERIES OF TOUGH MOVES THAT INCLUDED PEGGING ITS CURRENCY ONEFORONE TO THE DOLLAR SUDDENLY YOU DON'T SEE THE COUNTRYCLUB SET ANYMORE MR HICKEY SAYS THEY CAN'T COUGH UP THE 150 MONTHLY DUES IT'S NOT JUST ON THE GREENS THAT THEY'RE SINGING THE BLUES AS ARGENTINA ENTERS ITS THIRD YEAR OF ECONOMIC STABILITY AN EXPERIENCE UNKNOWN TO A GENERATION OF ARGENTINES AND EARNS ACCOLADES ABROAD FOR ITS DRAMATIC TURNAROUND FROM A STATIST CLOSED ECONOMY TO A CAPITALIST OPEN ONE A FUNNY THING IS HAPPENING HERE MANY ARE FINDING IT IS HARDER TO LIVE WITH LOW INFLATION THAN WITH HYPERINFLATION WITH 200 INFLATION A MONTH WE ALSO EARNED 200 MORE SAYS AUTO DEALER HUGO CUETO NOW THERE'S LESS INFLATION BUT YOU CAN'T AFFORD ANYTHING INDEED ARGENTINA'S STABILIZATION PLAN WHICH HAS BROUGHT INFLATION DOWN TO AN ANNUAL RATE OF 10 FROM 4200 IN 1989 IS RESULTING IN A PARADOX AS INFLATION EASES DAILY LIFE IS MORE EXPENSIVE A STUDY BY GENEVABASED CORPORATE RESOURCES GROUP FOUND BUENOS AIRES IS NOW THE SEVENTH MOST COSTLY CITY IN THE WORLD IN DOLLAR TERMS AND THE MOST EXPENSIVE OF THE AMERICAS 24 PRICIER THAN NEW YORK IN 1988 IT RANKED 66TH THE PARIS OF SOUTH AMERICA IS MORE EXPENSIVE THAN THE REAL THING CONTRARY TO WHAT ONE MIGHT EXPECT HYPERINFLATION CAN MAKE THINGS MORE AFFORDABLE FOR SOME PEOPLE THE BENEFICIARIES ARE THOSE WHO CAN INSTANTLY CONVERT MONEY THEY RECEIVE TO DOLLARS THEY BENEFIT WHEN THE DOLLAR STRENGTHENS FASTER THAN PRICES RISE IN ADDITION FOR THOSE LUCKY ENOUGH TO BE ABLE TO INCREASE PRICES OR THEIR SALARIES IN LOCKSTEP WITH LIVING COSTS HYPERINFLATION CAN BOOST DISPOSABLE INCOME BY ERASING DEBTS FOR INSTANCE ENGINEER NORBERTO JORGE CERUTTI BOUGHT AN APARTMENT IN 1973 FOR 121000 PESOS FIVE YEARS OF RAGING INFLATION LATER HE PAID OFF HIS REMAINING DEBT OF 62577 PESOS IN A LUMP SUM BECAUSE THE BUS AND SUBWAY FARE TO THE BANK COST HIM MORE THAN THAT MONEY WAS WORTH NOTHING HE SAYS BUT THE MAIN PROBLEM FOR ARGENTINE CONSUMERS NOW IS THAT WHILE INFLATION IS TAMED IT ISN'T DEAD AND MANY DEFENSES AGAINST IT ARE TO REBUILD ARGENTINA'S RAVAGED ECONOMY ECONOMY MINISTER DOMINGO CAVALLO TOOK DRASTIC ACTION IN APRIL 1991 HE INTRODUCED LAWS THAT RESTRAINED MONEYPRINTING AND INDEXATION AND FIXED THE PARITY OF THE AUSTRAL AT 10000 TO THE DOLLAR HE LATER RENAMED THE CURRENCY THE PESO AND LOPPED OFF FOUR ZEROS SO ONE PESO EQUALS ONE DOLLAR RESULTS WERE DRAMATIC AFTER YEARS OF STAGNATION THE ECONOMY GREW BY 9 LAST YEAR HELPED IN PART BY A HUGE PRIVATIZATION PROGRAM MONTHLY INFLATION SLOWED TO LESS THAN 1 FROM ABOUT 20 BY FREEZING THE EXCHANGE RATE THE PLAN ENDED THE HEDGE FOR INFLATION YET INFLATION DIDN'T END ALTOGETHER CONSUMER PRICES ARE STILL 50 HIGHER THAN AT THE START OF THE PLAN IN 1991 AND THAT'S 50 IN DOLLARS THE RISE HAS BEEN PARTICULARLY STRONG IN SERVICES WHICH FACE NO OUTSIDE COMPETITION MEANWHILE INFLATIONADJUSTED WAGES IN INDUSTRY HAVE FALLEN ABOUT 10 AND THE GOVERNMENT'S PUSH FOR TAX COLLECTION HAS DRIVEN UP COSTS BOTH FOR COMPANIES AND FOR INDIVIDUALS PURCHASING POWER IS LOWER THAN BEFORE THE PLAN SAYS NURIA SUSMEL AN ECONOMIST AT A RESEARCH INSTITUTE CALLED FIEL THE UPSHOT MR CUETO THE AUTO DEALER USED TO BE ABLE TO AFFORD A BOAT RACE HORSES AND TWO MONTHS HOLIDAY A YEAR WITH MONTHLY INCOME OF 3000 TODAY THE BOAT AND THE HORSES ARE GONE MAINTAINING THEM WOULD REQUIRE 20000 A MONTH WITH PERON I EARNED MONEY HE SAYS REFERRING TO GEN JUAN DOMINGO PERON AND TO HIS WIFE ISABEL WHO RULED FROM 1973 TO 1976 WITH THE MILITARY I LIVED BETTER WITH PRESIDENT RAUL ALFONSIN THERE WAS INFLATION BUT WE KNEW HOW TO LIVE WITH IT TODAY I EARN 7000 A MONTH BUT I CAN'T HAVE WHAT I USED TO HAVE WELCOME TO THE REAL WORLD SOME SAY LIKE MR CUETO MANY ARGENTINES ARE HAVING TO ADJUST TO BE SURE NO ONE WANTS TO RETURN TO HYPERINFLATION TO THINK YOU CAN LIVE WITH HYPERINFLATION IS TO THINK YOU CAN LIVE WITH CANCER SAYS ECONOMIST ADALBERTO RODRIGUEZ GIAVARINI BUT FEW BELIEVE ARGENTINA CAN DURABLY LIVE WITH CURRENT PRICE AND COST LEVELS EITHER SO AS THE INITIAL EUPHORIA OF STABILITY WEARS OFF ARGENTINA FACES A CRUCIAL TEST IT MUST EITHER REDUCE COSTS THROUGH BETTER PRODUCTIVITY WHICH COULD CAUSE UNEMPLOYMENT AND HEIGHTEN SOCIAL TENSIONS OR FACE THE UNENVIABLE DECISION TO DEVALUE ITS CURRENCY IT'S A RACE AGAINST TIME SAYS A TOP US BANKER AS WITH MEXICO AND VENEZUELA WHERE SOCIAL TENSIONS ARE RISING DESPITE IMPRESSIVE ECONOMIC GAINS THE ARGENTINE EXPERIENCE SERVES AS BOTH A BEACON AND A WARNING LIGHT STABILITY IS BRINGING IMPORTANT BENEFITS SUCH AS LOW INFLATION AND STEADY GROWTH BUT AT A HIGH COST INDUSTRIAL UNEMPLOYMENT IS RISING A TRADE DEFICIT HAS REPLACED A TRADE SURPLUS AND CORPORATE PROFITABILITY IS DECLINING AMID TOUGHER GLOBAL COMPETITION FOR NOW ARGENTINES CLEARLY PREFER STABILITY TO THE PREVIOUS MESS POLLS SUGGEST PRESIDENT CARLOS MENEM'S PERONIST PARTY WILL POST A STRONG WIN IN OCTOBER'S LEGISLATIVE ELECTIONS ON THE STRENGTH OF ITS ECONOMIC RECORD BUT ARGENTINES ARE CURIOUSLY AMBIVALENT ABOUT THE PLAN'S LONGTERM IMPACT FOR SOME SUCH AS 49YEAROLD HIGHSCHOOL PRINCIPAL CARMEN RODRIGUEZ THE END OF HYPERINFLATION MEANS PREVIOUSLY UNAFFORDABLE GOODS ARE NOW WITHIN REACH THANKS IN PART TO THE OPENING OF THE ECONOMY TO IMPORTED GOODS AND FOREIGN COMPETITION ON A SATURDAY AFTERNOON SHE IS STANDING WITH HER HUSBAND IN FRONT OF AN ELECTRONICS STORE SHOPPING FOR STEREO EQUIPMENT AND ENJOYING HER NEWFOUND SPENDING POWER THOUGH PRICES USED TO RISE FASTER THAN HER SALARY YOU DON'T HAVE TO RUN SO FAST TODAY SHE SAYS YOU CAN SAVE TO BUY LATER AND THE PRICE IS THE SAME THE DAY YOU WANT TO BUY SOMETHING AND BUY SHE HAS A STOVE A FREEZER A BARBECUE A TAPE DECK A FLOOR POLISHER WE ALSO CHANGED OUR CAR SHE SAYS ALL ARGENTINES ARE LEARNING TO LIVE BY NEW RULES PART OF HER SHOPPING SPREE WAS FINANCED BY THE COUPLE'S MONTHLY 1500 INCOME BUT PART WAS PAID BY A POSTSTABILITY NOVELTY CONSUMER CREDIT MRS RODRIGUEZ IS BUYING THINGS THAT WILL LAST AND SCORNS THOSE WHO COMPLAIN EVEN AS THEY BLOW MONEY ON PRICEY RESTAURANTS AND COUNTRY CLUBS WE HAVE TO LEARN HOW TO EAT LIVE ORGANIZE OUR HOUSEHOLDS ALL OVER AGAIN SHE SAYS BUT SOME FIND IT HARDER TO COPE WITH ARGENTINA'S HARDENED CASH LIKE THE ECONOMY BUSINESSMAN HUGO COSENTINO IS STILL GOING THROUGH HIS OWN PAINFUL ADJUSTMENT THE IMPORTS THAT DELIGHT CONSUMERS LIKE MRS RODRIGUEZ BROUGHT HIS CARDBOARDPACKAGING COMPANY TO ITS KNEES FOR A TIME MR COSENTINO 44 DID WELL BY PASSING ON PRICE INCREASES BEFORE HIS COSTS WENT UP YOU'D SAY MY COSTS ARE 10 I'D LIKE TO EARN 15 ON THAT SO TO BE SURE I'LL CHARGE 20' HE SAYS AS A RESULT I LIVED VERY WELL I EARNED ABOUT 150000 A YEAR I TURNED MY PROFITS INTO DOLLARS OR GOODS I HAD A BIG APARTMENT IN LA RECOLETA A TONY DISTRICT AN APARTMENT IN VILLA GESELL A BEACH RESORT WE HAD TWO CARS BUT THE ARRIVAL OF TRUE HYPERINFLATION IN 1989 MEANT HIS COSTS MOVED FASTER THAN HE COULD BY THE TIME WE GOT PAID 45 DAYS LATER THE MONEY DIDN'T COVER HALF OUR COSTS FOR RAW MATERIAL HE SAYS THE COUP DE GRACE CAME WITH STABILITY WHEN THE GOVERNMENT OPENED ARGENTINA'S ECONOMY TO FOREIGN COMPETITION MY CLIENTS WOULD SHOW ME THE FAXES FROM BRAZIL HE SAYS THEIR PRICES WERE HALF MY COSTS HE SOLD HIS APARTMENTS AND ONE CAR TO PAY OFF THE ROUGHLY 30 WORKERS HE HAD TO FIRE SOON HIS MARRIAGE FELL APART TOO I LOST MY COMPANY MY WIFE MY FRIENDS BECAUSE I WAS NOW A SECONDCLASS CITIZEN WHO COULDN'T AFFORD TO EAT IN THE COUNTRY CLUB HE SAYS I FELT COMPLETELY DESTABILIZED EVEN WITH STABILITY NOW MR COSENTINO WHO HAS REMARRIED DRIVES A TAXI HE EARNS 2000 A MONTH BUT SAYS THAT DOESN'T COVER HIS EXPENSES OF COURSE STABILITY LIKE INFLATION PRODUCES BOTH WINNERS AND LOSERS SAYS PEDRO LACOSTE A BUSINESS CONSULTANT HE COUNTS HIMSELF AMONG THE WINNERS BUT WINNING HE SAYS MEANS LOOKING BEYOND MERE PURCHASING POWER A TYPICAL DAY USED TO MEAN ANSWERING 30 CALLS FROM CLIENTS WORRIED ABOUT EXCHANGE OR INTEREST RATES NOW THE PHONE RINGS ONLY FOUR OR FIVE TIMES A DAY BUT IT'S TO TALK ABOUT 10YEAR PLANS HE'S HAD TO MAKE A TREMENDOUS SWITCH IN MY MIND I HAVE TO LEARN A LOT OF NEW THINGS BUT I FEEL FULFILLED MR LACOSTE WHO IS 35 AND SINGLE HAS MAINTAINED HIS INCOME BUT ONLY BECAUSE HE IS WORKING MUCH HARDER HE ALSO HAS FIRED ONE OF HIS THREE SECRETARIES AS WELL AS SOME ADMINISTRATIVE STAFF HE FIGURES SUCH RESTRUCTURING IS NEEDED THROUGHOUT THE ARGENTINE ECONOMY IT'S TODAY'S SITUATION THAT'S NORMAL NOT YESTERDAY'S HE SAYS NOTING HOW FRIENDS HAVE HAD TO CUT BACK ON THEIR TWOMAID THREECOUNTRYCLUB EXISTENCE IT'S A PAINFUL ADJUSTMENT BUT IT'S PART OF ARGENTINA LEARNING IT'S NOT AS RICH A COUNTRY AS IT THOUGHT SUCH WISDOM COMES AT A PRICE PEOPLE ARE GETTING SQUEEZED BY HIGHER TAXES AND UTILITY BILLS WHILE SUBSIDIES AND WAGES ARE CURBED WITH HYPERINFLATION YOU ASKED FOR RAISES AND GOT THEM SAYS LEONOR GHERSCOVICI TODAY THERE IS STABILITY IN PRICES BUT STABILITY IN WAGES TOO MRS GHERSCOVICI 31 EARNS 300 A MONTH WORKING PARTTIME IN A LAW FIRM HER HUSBAND BRINGS IN 900 AS A FREELANCE JOURNALIST TACKED TO HER REFRIGERATOR ARE UNPAID BILLS FOR GAS THE PHONE AND MUNICIPAL HOUSING TAX TOTALING ABOUT 187 SHE ALSO OWES ABOUT 1100 ON HER CREDIT CARD MOST OF IT FOR FOOD EVERYTHING WE EARN GOES TO TAXES AND BASIC NECESSITIES SHE SAYS THOSE WHO HAD LITTLE NOW HAVE NOTHING STILL SHE SAYS ECHOING THE FEELINGS OF MOST ARGENTINES I'D RATHER BE LIKE TODAY WITHOUT MONEY THAN LIKE BEFORE WITH ALL THAT CRAZINESS BUT WHAT I REALLY WOULD WANT SHE ADDS IS STABILITY AND MONEY 9308060071 930806 TWO CHARITIES ACCUSED OF FRAUDULENT CLAIMS TIED TO FUND RAISING NEW YORK NEW YORK CHARGED TWO CHARITIES WITH MAKING FRAUDULENT FUNDRAISING CLAIMS THAT INVOLVED INFLATING THE VALUE OF DONATED GOODS BY MILLIONS OF DOLLARS IN ORDER TO APPEAR MORE CREDIBLE THE ACTION FOLLOWS SIMILAR SUITS BY TWO OTHER STATES LAST YEAR AGAINST SEVERAL CHARITIES FOR WHAT IS KNOWN AS A DAISY CHAIN OPERATION WHICH INVOLVES REPEATED OR FAKED TRANSFER OF NEARWORTHLESS GOODS NEW YORK ATTORNEY GENERAL ROBERT ABRAMS SUED FAMINE RELIEF FUND INC OF WASHINGTON AND ITS SUCCESSOR CORPORATION THE AMERICAN INDIAN RELIEF COUNCIL INC OF RAPID CITY SD THE SUIT FILED IN STATE SUPREME COURT IN MANHATTAN ALLEGES THAT FROM 198691 FAMINE RELIEF AND THE AMERICAN INDIAN COUNCIL OVERVALUED WORTHLESS GOODS BY MORE THAN 275 MILLION AND FRAUDULENTLY CONVINCED THE PUBLIC TO DONATE MORE THAN 14 MILLION IN ADDITION TO RECOVERING MONEY THE SUIT IS SEEKING TO BAR THE CHARITIES FROM FUND RAISING IN NEW YORK OFFICIALS OF FAMINE RELIEF FUND COULDN'T BE REACHED AN ATTORNEY FOR BRIAN J BROWN WHO WAS NAMED IN THE SUIT AS PRESIDENT OF THE AMERICAN INDIAN RELIEF COUNCIL AND ACCOUNTANT FOR BOTH GROUPS THROUGH A SPOKESWOMAN ALSO DECLINED TO COMMENT 9308060070 930806 REVIEW & OUTLOOK EDITORIAL RE VINCENT FOSTER A TORRENT OF NEWS HAS OVERWHELMED THE STORY OF THE SUICIDE OF VINCENT FOSTER DEPUTY WHITE HOUSE COUNSEL AND CLINTON FAMILY FRIEND BUT WE DON'T WANT TO LET THE WEEK EXPIRE WITHOUT REMARKING THAT YES WE DID NOTICE THE AMAZING BARRAGE OF LEAKS AND POLEMICS SUGGESTING WE PULLED THE TRIGGER OF COURSE WE WERE THE ONLY NEWS ORGANIZATION TO SPOTLIGHT MR FOSTER PRIOR TO HIS SUICIDE WE CERTAINLY DID RAISE POINTED QUESTIONS IN OUR COMMENTARY ON THE PRACTICES OF THE ADMINISTRATION'S ROSE LAW FIRM PARTNERS MR FOSTER MRS CLINTON ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL AND ASSOCIATE WHITE HOUSE COUNSEL WILLIAM KENNEDY III OUR EXPERIENCE IN READING BETWEEN THE LINES OF LEAKS TELLS US THAT WE DO AT LEAST APPEAR IN THE TORNUP NOTE FOUND AT THE BOTTOM OF HIS BRIEFCASE YET THERE IS NO WAY TO COVER NATIONAL GOVERNMENT ON THE ASSUMPTION THAT A HIGH OFFICIAL AND STEELED LITIGATOR SECRETLY SUFFERS FROM DEPRESSION AND MAY COMMIT SUICIDE IF CRITICIZED WHAT WE SAID ABOUT MR FOSTER WAS NOTHING COMPARED TO THE ABUSE HEAPED ON THE LIKES OF ED MEESE ROBERT BORK AND CLARENCE THOMAS WE APPRECIATE THE REMARKS OF WILLIAM SAFIRE OF THE NEW YORK TIMES AND DOUG IRELAND OF THE VILLAGE VOICE TO THE EFFECT THAT WE WERE MERELY DOING OUR JOB IN THE WASHINGTON POST AND THE NEW REPUBLIC OF COURSE WE HAVE BEEN INSTRUCTED IN MANNERS AND CIVILITY BY MICHAEL KINSLEY WHO MAKES HIS PRINCIPAL LIVING AS A PARTICIPANT IN A TV SCREAMING MATCH AND IN THE NEW YORKER SIDNEY BLUMENTHAL WHO DURING THE PRESIDENTIAL CAMPAIGN TRASHED GEORGE BUSH'S RECORD IN WORLD WAR II TELLS US THAT WE HELP MAKE WASHINGTON A TOUGH TOWN NATURALLY THOSE WHO RESENT OUR UNAPOLOGETIC VIEWS GRABBED THE OCCASION TO BEAT UP ON US YET IT REMAINS TRUE THAT MR HUBBELL BROKERED A MEETING LEADING TO A JUSTICE DEPARTMENT INTERVENTION IN A CORRUPTION TRIAL AND THAT MR KENNEDY CALLED THE FBI INTO THE WHITE HOUSE TRAVEL OFFICE AND BACK IN ARKANSAS SIGNED SUSPECT PAPERS FOR THE STEPHENS EMPIRE IT IS ALSO TRUE THOUGH WE DIDN'T DWELL ON IT EARLIER THAT WHEN MRS CLINTON'S HEALTH TASK FORCE WAS UNDER COURT ORDER TO GIVE ADVANCE NOTICE OF MEETINGS MR FOSTER SIGNED NOTICES THAT APPEARED IN THE FEDERAL REGISTER AFTER THE MEETINGS HAD ALREADY BEEN HELD IT IS NOT TRUE MR BLUMENTHAL TO THE CONTRARY THAT AFTER THE ELECTION MR FOSTER HELPED SET UP A BLIND TRUST FOR THE CLINTONS THE FAILURE TO CREATE THIS TRUST WAS THE SUBJECT OF CRITICAL EDITORIALS IN NEWSDAY AND MONEY MAGAZINE WE'RE NOW TOLD IT WAS FILED JULY 26 ONE HAS TO PONDER OF COURSE WHETHER THESE PROBLEMS WERE THE RESULT OR THE CAUSE OF MR FOSTER'S DEPRESSION PROBABLY WE WILL NEVER KNOW ESPECIALLY GIVEN THE WAY THE INVESTIGATION HAS BEEN HANDLED THERE HAS BEEN WIDESPREAD CRITICISM OF THE 30HOUR DELAY IN RELEASING THE FOSTER NOTE TO THE INVESTIGATORS THE CONFUSION OVER WHO WAS INVESTIGATING AND THE CHANGE IN STORIES ABOUT MR FOSTER'S IMPRESSIONS ON ASSOCIATES THIS IS ALREADY LEADING TO THE WILDEST SPECULATION WE EVEN READ ONE REPORT SUGGESTING MR FOSTER WAS MURDERED BY A DRUGDEALING CABAL OF MILITARY OFFICERS WE HOPE AND TRUST THAT THE WHITE HOUSE WILL SEEK TO REPAIR SOME OF THIS DAMAGE WITH MORE OPENNESS WE HOPE THERE'S THE FULLEST POSSIBLE ACCOUNTING IN THE BLIND TRUST FOR EXAMPLE AND GIVEN THE FINGERS POINTED AT US WE HAVE A PARTICULAR STAKE IN SEEING THE FULL TEXT OF THE FOSTER NOTE OUR CRITICS WERE PARTICULARLY UPSET BY OUR SUGGESTION THAT THE ADMINISTRATION TURN THE INVESTIGATION OF THE SUICIDE OVER TO A SPECIAL COUNSEL WITHIN JUSTICE NOT A SPECIAL COUNSEL OF THE LAWRENCE WALSH ILK AS MR KINSLEY DISTORTED IT AS WE SAID AT THE TIME THE POINT WAS TO COORDINATE THE INVESTIGATION BY NOW IT OUGHT TO BE CLEAR THAT THE WHITE HOUSE WOULD HAVE SERVED ITS OWN INTERESTS BY TAKING OUR ADVICE 9308060069 930806 HOW MANY SONGS CAN A CAGED FINCH SING IN A FLEMISH ACCENT BELGIANS THINK THE QUESTION IS CRUCIAL AND VINKENSPORT HAS THOUSANDS IN ITS THRALL BY JAMES PRESSLEY STAFF REPORTER OF THE WALL STREET JOURNAL MARIALOOP BELGIUM LIKE MOST SPORTS TRAINERS FILIP SANTENS FRETS ABOUT HIS CHARGES HE FEEDS THEM EXOTIC HIGHPROTEIN FOODS AND CHAUFFEURS THEM TO CONTESTS BUT HE WONDERS ABOUT THEIR LOYALTY I THINK OF THEM AS FRIENDS THE YOUNG FLEMING SAID AFTER A RECENT COMPETITION BUT WOULD THEY COME BACK IF I LET THEM OUT OF THEIR CAGES HE HAS REASON TO WONDER MR SANTENS'S GAME IS THE VINKENSPORT IT IS A TEST OF HOW MANY BIRD SONGS A CAGED FINCH CAN SING IN AN HOUR VINKENSPORT A TERM DERIVED FROM THE DUTCH WORD FOR FINCH IS AN ANCIENT GAME IN FLANDERS WITH A RECORDED HISTORY DATING TO THE 14TH CENTURY IT HASN'T ALWAYS BEEN PLAYED BY JEANSCLAD BIRD TRAINERS LIKE MR SANTENS FLEMISH NOBLEMEN MONOPOLIZED THE SPORT INTO THE 19TH CENTURY BUT MR SANTENS A PARTTIME OFFICIAL OF FLANDERS'S LARGEST ASSOCIATION OF VINKENIERS IS EAGER TO SHOW VISITORS THAT THE GAME HAS BEEN PURGED NOT ONLY OF ITS PATRICIAN AIRS BUT OF OLD ABUSES ON A COOL SATURDAY MORNING IN THE VILLAGE OF INGOOIGEM RECENTLY MR SANTENS COCKED HIS HEAD AND LED TWO NOVICES TO A STREET WHERE A COMPETITION WAS UNDER WAY WITH JUST A WEEK TO GO BEFORE THE NATIONAL CHAMPIONSHIP TENSIONS WERE RUNNING HIGH AMONG OWNERS AND PERHAPS THEIR BIRDS THE VINKENIERS PERCHED ON CAMPSTOOLS IN A LINE RUNNING HUNDREDS OF YARDS EACH SAT BEFORE A WOODEN CAGE RESEMBLING A LARGE SHOESHINE BOX NARY A NOBLEMAN WAS IN SIGHT JUST FARMERS FACTORY WORKERS AND HOUSEWIVES MAKING SCRATCHES ON LONG BLACK STICKS EACH TIME A FINCH WARBLED A SONG A BIRD MIGHT SING MORE THAN 1000 SONGS IN AN HOUR OR NONE AT ALL YOU HEAR THAT MR SANTENS WHISPERED THAT'S A PINK HE SAID USING THE DUTCH WORD FOR CHIRP IT DOESN'T COUNT IT MEANS THE BIRD IS AFRAID NO WONDER CONSIDERING THAT THE SPORT HAS NOT ALWAYS BEEN KIND TO SONGBIRDS AS RECENTLY AS THE 1920S PLAYERS BLINDED THEIR BIRDS BECAUSE A FINCH SINGS BEST WHEN IT ISN'T DISTRACTED USUALLY THEY BURNED THEIR EYELIDS TOGETHER WITH A HOT NEEDLE MR SANTENS SAYS THEY USED AMMONIA TOO A COLLEAGUE ADDS A 1929 BELGIAN GOVERNMENT BAN ON BLINDING NEARLY FINISHED OFF THE SPORT MR SANTENS EXPLAINS BUT ENTHUSIASTS IN THE EARLY 1930S INVENTED THE SPECIAL WOODEN CAGE USED TODAY THAT LETS IN LIGHT AND AIR BUT BLOCKS A BIRD'S VISION THE BOX ENSURED THE SPORT'S SURVIVAL AND INCREASED ITS POPULARITY AT THE TURN OF THE CENTURY MR SANTENS ESTIMATES NO MORE THAN 1000 FLEMINGS ENGAGED IN VINKENSPORT WHILE TODAY THERE ARE MORE THAN 20000 REGISTERED VINKENIERS MOSTLY IN WEST FLANDERS THE FLOCK SUPPORTS TWO FEDERATIONS A SMALL MUSEUM AND A NEWSPAPER THAT PUBLISHES THE RESULTS OF CONTESTS HELD IN SCORES OF VILLAGES DURING THE SINGING SEASON FROM MIDAPRIL TO THE END OF AUGUST YOU HAVE PEOPLE OF ALL LEVELS SAYS JACQUES PHILLIPPE CHAIRMAN OF THE WORLD ORNITHOLOGICAL CONFEDERATION THAT IS THE WAY IT IS SUPPOSED TO BE VINKENIERS IN INGOOIGEM SAY BUT A WEEK BEFORE THE NATIONAL CHAMPIONSHIP A LOCAL CAFE WAS ATWITTER WITH GOSSIP AS BEERS AND PRIZE SILK FLOWERS WERE PASSED AROUND THE SMOKEFILLED ROOM SOME SAID RESULTS OF THE PENDING CONTEST MIGHT BE SKEWED BY HOT BIRDS BOUGHT ON THE BLACK MARKET FOR AS MUCH AS 10000 BUT THERE ALSO WAS MUCH TALK IN INGOOIGEM OF AN UPRIGHT YOUNG BIRD THAT STUNNED ITS OWNERS BY SINGING AN UNHEARDOF 1100 SONGS IN THE SECOND CONTEST OF HIS CAREER JUST TWO WEEKS EARLIER THE FINCH NAMED RAMBO IS THE PRIZE POSSESSION OF ERNA VANDENBULCKE WHOSE FAMILY HAS PLAYED THE GAME FOR 20 YEARS WORRIES ABOUT ABUSE PERSIST TO THIS DAY AMONG PLAYERS ORNITHOLOGISTS ANIMALRIGHTS GROUPS AND ENVIRONMENTALISTS FLEMISH VINKENIERS KEEP ABOUT 105000 REGISTERED FINCHES MOST OF THEM IN A REGION THAT CONTAINS ONLY ABOUT 1000 KNOWN PAIRS OF WILD FINCHES COMPETITORS ARE COOPED UP IN THEIR BOXES THROUGHOUT THE LONG SINGING SEASON THEIR MUSCLES DETERIORATE SAYS JAN DESMET A CORRESPONDENT WITH THE DUTCH NATURE MAGAZINE GRASDUINEN THE CONFINEMENT APPEARS TO DAMAGE THE BIRDS' VISION AND THEIR ABILITY TO FLY MR DESMET SAYS IN ADDITION TO LAWS AGAINST BLINDING BIRDS IT NOW ALSO IS ILLEGAL TO SELL FINCHES OR TO USE LARGE NETS TO CATCH THEM EACH BIRD MUST BE IDENTIFIED WITH A LEG RING AND THE OWNER CANNOT TRANSPORT A BIRD WITHOUT A LICENSE ESTABLISHING OWNERSHIP WALTER ROGGEMAN WHO HEADS THE BIRDRINGING OFFICE AT THE BELGIAN ROYAL INSTITUTE OF NATURAL SCIENCE IN BRUSSELS SAYS VINKENIERS DIDN'T CAUSE THE DECLINE OF THE FLEMISH WILD FINCH POPULATION HE ATTRIBUTES THE LOSS MOSTLY TO THE DISAPPEARANCE OF THE FINCHES' NATIVE HABITAT OLD ORCHARDS THAT WERE FELLED IN THE 1960S FINCHES STILL ABOUND IN SCANDINAVIA AND CENTRAL EUROPE HOWEVER AND THEY MIGRATE THROUGH BELGIUM IN THE AUTUMN BY LAW VINKENIERS ARE ALLOWED TO CATCH 18000 OF THEM A YEAR BETWEEN OCT 15 AND NOV 15 USING ONLY A SMALL CAGETRAP AND A LIVE FEMALE FINCH AS BAIT IT IS THE MALES THAT COMPETE IN THE SINGING CONTESTS TROUBLE IS MR ROGGEMAN SAYS FINCHES CHIRP IN DIALECTS AND VINKENIERS WANT ONLY BIRDS THAT SOUND FLEMISH A DIALECT OF DUTCH RULES OF THE SPORT STIPULATE THAT A SONG DOESN'T COUNT UNLESS IT ENDS IN THE LOCAL SISKEWIE WHEN A BIRD SINGS THE WRONG SORT OF SONG PLAYERS CALL IT A WAALSE VINK REFERRING TO THE FRENCH DIALECT SPOKEN IN WALLONIA IN SOUTHERN BELGIUM IT'S STRANGE ISN'T IT SAYS ROGER ALLEMAND PRESIDENT OF THE BELGIAN ORNITHOLOGICAL UNION IN SUCH A SMALL COUNTRY WE HAVE TWO LANGUAGES EVEN FOR THE FINCHES TO BE SURE YOUNG FINCHES CAN LEARN THE DIALECT BY LIVING FOR A YEAR AMONG ADULTS BUT BY THE SAME TOKEN A VINKENIER DOESN'T WANT FLEDGLINGS' SPEECH CORRUPTED BY FOREIGN ACCENTS FROM MIGRATING BIRDS AND GIVEN THE CONTROVERSIES THAT ALREADY SWIRL ABOUT THE SPORT THE LAST THING THE NATIONAL CHAMPIONSHIP IN THE TINY DORP OF MARIALOOP NEEDS IS ANY HINT OF SCANDAL THE DAY OF THE CHAMPIONSHIP IS AT HAND IT IS 9 AM SHARP ON SUNDAY SEVERAL THOUSAND OBSERVERS MOST ON FOOT MANY ON BICYCLE SILENTLY MOVE PAST 1583 CAGES DOTTING A 25 MILE ROUTE THAT RUNS ALONG A NARROW LANE FROM THE BIG TENT WHERE THE WINNERS ARE TO BE ANNOUNCED PAST NEAT BUNGALOWS THROUGH FIELDS OF COWS TO THE NEXT TOWN AS A RED FLAG DROPS A HUSH FALLS OVER THE CROWD EVEN THE VILLAGE PRIEST HAS AGREED TO STILL THE BELLS THAT WOULD NORMALLY BE CALLING THE FAITHFUL TO MASS SOME 20 MINUTES INTO THE COMPETITION IT GETS EASY TO SPOT THE TRUE CONTENDERS KNOTS OF PEOPLE GATHER AROUND THEIR CAGES HEADS COCKED EARS HANGING ON EACH SISKEWIE CONTEST OFFICIALS STAND NEARBY READY TO HAND A NEW STICK TO THE SONG COUNTERS CONTESTANTS MONITORING ONE ANOTHER'S BIRDS EACH STICK HAS ONLY ENOUGH SPACE TO MARK 800 SONGS ALTHOUGH THESE ARE THE BEST FINCHES IN FLANDERS SOME DON'T MAKE A PEEP ON THIS IMPORTANT DAY OTHERS WARBLE CEASELESSLY WHILE MANY SING SO SOFTLY THAT IT IS HARD TO HEAR THEM AFTER AN HOUR OF THIS THE RESULTS ARE TOTTED UP AND OFFICIALS OF THE VINKENIERS ASSOCIATION GATHER ON STAGE TO ANNOUNCE THAT RAMBO THE EARLY FAVORITE IS INDEED THE WINNER HIS OWNER MS VANDENBULCKE ACCEPTS A TWOFOOTHIGH TROPHY MORE THAN 1000 IN CASH AND THE CHEERS OF SEVERAL HUNDRED ASSEMBLED BEERDRINKERS BUT THE WINNER HIMSELF HAS ALREADY GONE HOME TO SAVE HIS VOICE HAVING FLOWN THE COOP AS IT WERE 9308060068 930806 FORD MOTOR TO USE ALUMINUM FOR STEEL IN SOME TEST SEDANS TRAVERSE CITY MICH THE AUTO INDUSTRY IS TAKING ANOTHER LOOK AT EXPANDING ITS USE OF ALUMINUM IN CARMAKING AT A GATHERING OF AUTOINDUSTRY OFFICIALS AND SUPPLIERS HERE FORD MOTOR CO SAID IT IS BUILDING 20 SABLE SEDANS USING ALUMINUM IN PLACE OF STEEL IN THE FRAME AND BODY THE CARS WILL BE USED IN LONGTERM TESTS WITH FLEET CUSTOMERS AND THE UNITED STATES COUNCIL FOR AUTOMOTIVE RESEARCH A JOINT GROUP LED BY THE BIG THREE US AUTO MAKERS SAID IT IS SETTING UP A CONSORTIUM TO CONDUCT SHARED RESEARCH INTO THE USE IN CARS OF ALUMINUM AND OTHER LIGHTWEIGHT METALS SUCH AS MAGNESIUM SEPARATELY THE GROUP SAID IT WILL FORM AN ADDITIONAL CONSORTIUM TO LOOK INTO THE USE OF SUPER COMPUTING SYSTEMS ON AUTOMOBILES THE ALUMINUM ANNOUNCEMENTS UNDERSCORE A GROWING INTEREST THROUGHOUT THE INDUSTRY IN FURTHER REDUCING VEHICLE WEIGHTS TO COMPLY WITH RISING REGULATORY DEMANDS FOR BETTER FUEL ECONOMY FORD OFFICIALS HOWEVER DECLINED TO DISCUSS HOW MUCH THE EXPERIMENTAL ALL ALUMINUM STRUCTURES WOULD EFFECT OVERALL VEHICLE FUEL EFFICIENCY THE AUTO MAKER DID SAY THAT THE ALUMINUMBUILT SABLE IS 400 POUNDS LIGHTER THAN ITS STEEL COUNTERPART 9308060067 930806 CHEMICAL COMPANIES IN WESTERN GERMANY SEE TROUBLE THIS YEAR SPECIAL TO THE WALL STREET JOURNAL FRANKFURT WESTERN GERMANY'S CHEMICAL INDUSTRY EXPECTS A 4 TO 5 DECLINE IN PRODUCTION A SOFTENING IN PRICES AND AN APPRECIABLE DROP IN SALES AND EMPLOYMENT THIS YEAR THE CHEMICAL INDUSTRY ASSOCIATION SAID THE BUSINESS ENVIRONMENT FOR CHEMICAL COMPANIES IN WESTERN GERMANY WAS AS UNSATISFACTORY IN THE SECOND QUARTER AS IN THE FIRST CHEMICAL SALES TOTALED 795 BILLION MARKS 465 BILLION IN THE FIRST HALF DOWN 8 FROM A YEAR EARLIER WITH A 9 DROP IN DOMESTIC SALES AND A NEARLY 7 DECLINE OVERSEAS NONETHELESS THE ASSOCIATION SAID COSTCUTTING AND RESTRUCTURING MOVES BY ITS MEMBERS OFFER HOPE THAT PROFITS MAY GRADUALLY STABILIZE PRODUCTION IN THE FIRST HALF WAS DOWN AT LEAST 5 FROM A YEAR EARLIER THE INDUSTRY GROUP NOTED PRODUCTION OF INORGANIC RAW MATERIALS FELL BY MORE THAN 7 WHILE PRICES FELL 3 THERE WAS LITTLE CHANGE IN THE PRODUCTION OF ORGANIC CHEMICALS AND PLASTIC PRODUCTION FELL BY MORE THAN 5 PHARMACEUTICAL PRODUCTION WAS DOWN 75 OUTPUT OF SOAPS SHAMPOOS AND BODYCARE PRODUCTS FELL 15 9308060066 930806 CREDIT RATINGS MCCORMICK & CO SPARKS MD HAD ITS DEBT RATINGS UPGRADED BY MOODY'S INVESTORS SERVICE INC TO SINGLEA2 FROM SINGLEA3 CITING STRONG EARNINGS AND SOLID DEBTHOLDER PROTECTION ABOUT 75 MILLION IN DEBT IS AFFECTED MCCORMICK IS A SPICE AND SEASONING CONCERN AND SELLS FLAVORING SUPPLIES TO FOOD MANUFACTURERS MOODY'S SAID IT EXPECTS MCCORMICK TO CONTINUE ITS RECORD OF INCREASING EARNINGS THE COMPANY HAS INCREASED ITS SHARE OF THE CONSUMER SPICE MARKET THROUGH STRONG MARKETING PROGRAMS AND UPGRADED CONSUMER PACKAGING MOODY'S SAID IT ASSIGNED A SINGLEA2 RATING TO THE COMPANY'S NEW 150 MILLION MEDIUMTERM NOTE PROGRAM ALSO MCCORMICK'S COMMERCIAL PAPER RATING WAS UPGRADED TO PRIME1 FROM PRIME2 9308060065 930806 BUSINESS BRIEF US SHOE RETAIL SALES DECREASED 03 IN THE LATEST 4WEEK PERIOD US SHOE SAID RETAIL SALES FOR THE FOUR WEEKS ENDED SATURDAY DECREASED 03 AS GAINS IN THE FOOTWEAR AND OPTICAL GROUPS WERE OFFSET BY A DECLINE IN THE WOMEN'S APPAREL GROUP JULY SALES OF THE CINCINNATI COMPANY WERE 1488 MILLION ON A BASE OF 2380 STORES COMPARED WITH 1493 MILLION ON A BASE OF 2438 STORES COMPARABLESTORE SALES DECREASED 18 IN THE SIX MONTHS ENDED SATURDAY RETAIL SALES DECREASED 1 TO 103 BILLION FROM 104 BILLION A YEAR EARLIER COMPARABLESTORE SALES FOR THE SIX MONTHS DECREASED 1 SALES IN THE WOMEN'S APPAREL GROUP SLIPPED 43 TO 745 MILLION COMPARABLESTORE SALES DECREASED 46 US SHOE SAID YEAREARLIER SALES BENEFITED FROM A MAJOR SUIT SALE WHICH WON'T TAKE PLACE UNTIL SEPTEMBER OF THIS YEAR 9308060064 930806 POLITICS & POLICY JOURNALISTS' LAWYER IS SET TO DO WORK FOR CLINTONS WASHINGTON ROBERT BARNETT A PROMINENT WASHINGTON LAWYER WHO REPRESENTS MANY JOURNALISTS IS HANDLING SOME LEGAL MATTERS FOR PRESIDENT CLINTON AND FIRST LADY HILLARY RODHAM CLINTON A WHITE HOUSE OFFICIAL ACKNOWLEDGED THAT MR BARNETT A PARTNER IN THE LAW FIRM OF WILLIAMS & CONNOLLY HAS WORKED FOR THE CLINTONS IN THE PAST AND WILL BE TAKING ON SOME OF THE LEGAL WORK PREVIOUSLY DONE BY DEPUTY WHITE HOUSE COUNSEL VINCENT FOSTER JR WHO RECENTLY COMMITTED SUICIDE MR BARNETT ALSO REPRESENTS A NUMBER OF PROMINENT WASHINGTON TELEVISION REPORTERS AND COMMENTATORS AND NEWSPAPER REPORTERS WHO HAVE WRITTEN BOOKS HIS CLIENTS INCLUDE SEVERAL JOURNALISTS AT THE WALL STREET JOURNAL HIS WIFE IS RITA BRAVER OF CBS NEWS WHO RECENTLY WAS NAMED TO COVER THE WHITE HOUSE FOR THE NETWORK THE FACT THAT MR BARNETT IS WORKING FOR THE PRESIDENT AT THE SAME TIME THAT JOURNALIST CLIENTS ARE COVERING THE PRESIDENT MAY RAISE QUESTIONS ABOUT POTENTIAL CONFLICTS OF INTEREST WHITE HOUSE PRESS SECRETARY DEE DEE MEYERS SAID MR BARNETT HAS DONE PERSONAL LEGAL WORK FOR THE CLINTONS THE WHITE HOUSE SAID THE OTHER OUTSIDE LEGAL COUNSEL FOR THE FIRST FAMILY IS THE ROSE LAW FIRM OF LITTLE ROCK ARK IN WHICH MRS CLINTON WAS ONCE A PARTNER 9308060063 930806 BUSINESS BRIEF BCE INC NORTHERN TELECOM UNIT GETS APPROVAL ON FIBER OPTIC TIE NORTHERN TELECOM LTD SAID REGULATORS CLEARED THE WAY FOR A UNIT TO SUPPLY AND INSTALL A TRANSOCEANIC FIBER OPTIC TELCOMMUNICATIONS LINK IN A CONTRACT VALUED AT ABOUT 150 MILLION THE COMPANY'S STC SUBMARINE SYSTEMS LTD UNIT WILL PROVIDE NEARLY 4000 KILOMETERS OF CABLE AND 85 UNDERSEA OPTICAL AMPLIFIERS FOR THE LINK WHICH WILL CONNECT GREENHILL RI TO LAND'S END IN THE UK THE LINK KNOWN AS TAT12 IS EXPECTED TO BE IN SERVICE DURING 1995 THE CONTRACT AWARDED BY AMERICAN TELEPHONE & TELEGRAPH CO BRITISH TELECOMMUNICATIONS PLC AND FRANCE TELECOM HAD BEEN SIGNED IN DECEMBER BUT WAS AWAITING REGULATORY APPROVALS NORTHERN TELECOM A UNIT OF CANADA'S BCE INC HAD EARLIER SAID IT WOULD SELL STC SUBMARINE TO A UNIT OF FRANCE'S ALCATEL ALSTHOM 9308060062 930806 WHO'S NEWS SALOMON TAPS KEEGAN TO SUCCEED HILIBRAND IN ARBITRAGE OPERATION NEW YORK SALOMON BROTHERS INC NAMED DENNIS J KEEGAN COHEAD OF ITS EUROPEAN OPERATIONS TO SUCCEED STAR TRADER LAWRENCE HILIBRAND AS HEAD OF ITS HUGE US BOND ARBITRAGE OPERATIONS THE APPOINTMENT TIPS SALOMON'S HAND ON WHAT'S IMPORTANT TO THE NEW YORK SECURITIES BROKER MR KEEGAN 41 YEARS OLD DRAFTED FROM LONDON WAS FORMERLY A HIGHLY SUCCESSFUL TRADER FOR SALOMON'S OWN ACCOUNT HIS PARTICULAR EXPERTISE IS IN FOREIGN EXCHANGE AND ARBITRAGE TRADING MR KEEGAN'S COHEAD IN LONDON STEPHEN JD POSFORD 45 WILL NOW BE SOLE CHIEF EXECUTIVE OF THE EUROPEAN OPERATIONS MR KEEGAN'S RISE WITHIN THE SALOMON INC UNIT HAS BEEN SWIFT HIRED IN 1980 HE WAS NAMED MANAGER OF FOREIGN EXCHANGE TRADING THREE YEARS LATER AND BECAME A MANAGING DIRECTOR AND COHEAD OF FIXEDINCOME TRADING IN 1988 THREE YEARS LATER HE WAS NAMED COHEAD OF ALL FIXEDINCOME AND EQUITY BUSINESS IN EUROPE HE TOOK OVER AS CHIEF EXECUTIVE OF THE EUROPEAN OPERATIONS WORKING WITH MR POSFORD IN FEBRUARY 1992 MR KEEGAN WAS UNAVAILABLE FOR COMMENT TWO WEEKS AGO SALOMON ANNOUNCED THAT MR HILIBRAND 34 THE COMPANY'S MOST POWERFUL BONDARBITRAGE EXECUTIVE AND ONE OF WALL STREET'S HIGHESTPAID TRADERS PLANS TO QUIT AT YEAR END ANALYSTS SAID THE COMPANY'S POTENTIAL TO CONTINUE GENERATING FAT TRADING PROFITS MAY BE HAMPERED BY HIS DEPARTURE BOND TRADING IS A MAJOR PROFIT CENTER FOR SALOMON ITS WORLDWIDE ARBITRAGE GROUP HAS ACCOUNTED FOR 87 OF SALOMON BROTHERS' PRETAX PROFIT SINCE 1990 9308060061 930806 PUERTO RICO SEES US DEFICIT PLAN CURBING INVESTMENT BY JENNIFER CODY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A PROPOSED REDUCTION IN A TAX BREAK GIVEN TO US MANUFACTURERS IN PUERTO RICO WON'T HAVE AN IMMEDIATE EFFECT ON INVESTMENT THERE A COMMONWEALTH OFFICIAL SAID BUT HE PREDICTED IT WOULD HINDER COMPANIES' FUTURE EXPANSION CLIFFORD MYATT ADMINISTRATOR OF ECONOMIC DEVELOPMENT EXPECTS MOST OF THE 500 OR SO AFFECTED COMPANIES TO STAND FIRM FOR THREE OR FOUR YEARS AFTER ANY REDUCTION IN THE TAX CREDIT NONETHELESS HE SAID THERE WILL BE CURTAILMENT OF EXPANSION BY US FIRMS CURRENTLY US COMPANIES PAY NO FEDERAL TAXES IN PUERTO RICO ALTHOUGH SOME PAY LOCAL TAXES HOWEVER THE COMPROMISE DEFICITREDUCTION BILL PUT FORTH THIS WEEK IN WASHINGTON WOULD CHANGE ALL THAT IN THE FUTURE COMPANIES WITH OPERATIONS IN PUERTO RICO WOULD CHOOSE BETWEEN EITHER PAYING FEDERAL TAX BASED ON A FORMULA REFLECTING INVESTMENT AND WAGES OR CLAIMING 60 OF THE CREDIT'S CURRENT VALUE BY 1998 THE NUMBER WOULD BE CUT TO 40 MR MYATT AND OTHER OFFICIALS AGREED THAT THE COMPROMISE BILL WHILE FAR FROM OPTIMAL IS NEVERTHELESS MORE BENIGN THAN THE ORIGINAL VERSION THE CLINTON ADMINISTRATION'S FIRST PROPOSAL WOULD HAVE LIMITED THE TAX CREDIT TO 60 OF WAGES PAID IN PUERTO RICO THAT PLAN WHICH ALSO IGNORED RETURNS ON CAPITAL INVESTMENTS WOULD HAVE BEEN THE KISS OF DEATH MR MYATT SAID TO CAPITALINTENSIVE FIRMS IN THE COMMONWEALTH IN PARTICULAR PHARMACEUTICAL MAKERS HE NOTED THAT THE PHARMACEUTICAL INDUSTRY WHICH GENERATES MORE THAN 50 OF TOTAL REVENUE THAT WOULD BE AFFECTED BY A CHANGE IN THE TAX LAW HAS MADE SIGNIFICANT CAPITAL INVESTMENTS IN PUERTO RICO SUCH INVESTMENTS HE ADDED WOULD PROBABLY TEMPER EARLIER THREATS MADE IN THE HEAT OF LOBBYING AGAINST PROPOSED CHANGES TO SHUT DOWN AND LEAVE SHOULD THE BILL PASS ANY DECISION TO HEAD OFF TO OTHER PARTS OF THE WORLD WILL BE DELAYED AT LEAST UNTIL THE AIR CLEARS MR MYATT PREDICTED STILL HE AND OTHERS EXPRESSED CONCERN ABOUT THE ASSUMPTIONS THAT UNDERLIE THE CHANGE THERE WAS NO DEBATE ABOUT THE CONCEPT HE LAMENTED NO DISCUSSION OF IS THIS RIGHT WRONG GOOD BAD' THE WHOLE THING WAS FED BY A DISCUSSION OF NUMBERS OF THE SUPPOSED 7 BILLION IN TAXES THIS WAS SUPPOSED TO CREATE ANOTHER POTENTIAL CONSEQUENCE OF THE BILL MIGHT BE AN EXODUS OF EDUCATED PUERTO RICANS WE'LL HAVE A LOT OF HIGHDEGREE HIGHLY EDUCATED PUERTO RICANS LOOKING FOR WORK LIKELY IN THE US MR MYATT SAID IF US COMPANIES REDUCE THEIR WORK FORCES IN RESPONSE TO TAX INCREASES IN ADDITION COMMONWEALTH OFFICIALS EXPRESSED CONCERN ABOUT THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH MIGHT PROVIDE ADDED IMPETUS FOR COMPANIES TO MOVE TO MEXICO THAT SAID MR MYATT WOULD BE SOMETHING WE DON'T NEED TO TOP OFF EVERYTHING 9308060060 930806 AIRLINES SET EARLIER DATE FOR FALL FARE DISCOUNTS THE AIRLINE INDUSTRY'S FALL FARE WAR WILL TAKE EFFECT EARLIER THAN EXPECTED THE INDUSTRY LED BY DELTA AIR LINES CUT ADVANCEPURCHASE FARES WEDNESDAY AS MUCH AS 35 FOR TRAVEL BETWEEN SEPT 15 AND DEC 15 YESTERDAY WINGS HOLDINGS INC'S NORTHWEST AIRLINES SEEKING TO STIR UP ENDOFSUMMER VACATION BUSINESS APPLIED THE DISCOUNT FOR TRIPS THAT BEGIN AFTER AUG 23 DISCOUNTS APPLY ON TICKETS BOUGHT 14 DAYS IN ADVANCE AMR CORP'S AMERICAN AIRLINES CONTINENTAL AIRLINES UAL CORP'S UNITED AIRLINES USAIR GROUP INC'S USAIR UNIT AMERICA WEST AIRLINES AND TRANS WORLD AIRLINES SAID THEY WOULD MATCH THE NORTHWEST MOVE AND ALL MAJOR CARRIERS ARE EXPECTED TO FOLLOW SUIT DELTA APPEARS TO HAVE BROKEN ANY HESITATION IN THE INDUSTRY TO IMPOSE ACROSSTHEBOARD DISCOUNTS SOME ANALYSTS BELIEVE AIRLINES HAVE BEEN HOLDING OFF ON FARE SALES UNTIL THE OUTCOME OF A FEDERAL ANTITRUST LAWSUIT IN GALVESTON TEXAS IN THAT SUIT NORTHWEST AND CONTINENTAL HAVE ACCUSED AMERICAN OF TRYING TO DRIVE THEM OUT OF BUSINESS BY STEEPLY DISCOUNTING FARES BUT NORTHWEST'S QUICK MOVE TO EXTEND THE DELTALED FARE SALE SUPPORTS THE NOTION THAT THE AIRLINES FACING SLUGGISH DEMAND AMONG PRICESENSITIVE LEISURE TRAVELERS ARE EAGER TO DISCOUNT 9308060059 930806 MONEY FUND ASSETS DECLINE 927 BILLION WASHINGTON MONEY MARKET MUTUAL FUND ASSETS FELL 927 BILLION TO 57327 BILLION FROM A REVISED 58254 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 642 RETAIL MONEY MARKET MUTUAL FUNDS FELL BY 251 BILLION TO 38907 BILLION THE TRADE GROUP SAID ASSETS OF 402 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY FELL BY 201 BILLION TO 30697 BILLION ASSETS OF 240 RETAIL TAXEXEMPT FUNDS FELL BY 4957 MILLION TO 8210 BILLION ASSETS OF THE 270 INSTITUTIONAL MONEY MARKET FUNDS FELL BY 676 BILLION TO 18420 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 218 TAXABLE MONEY MARKET FUNDS FELL BY 749 BILLION TO 16325 BILLION ASSETS OF 52 TAXEXEMPT FUNDS ROSE BY 7242 MILLION TO 2095 BILLION 9308060058 930806 BUSINESS BRIEF BUTLER INTERNATIONAL INC COST OF CLOSING SOME UNITS RESULTS IN 2NDQUARTER LOSS BUTLER INTERNATIONAL INC POSTED A SECONDQUARTER LOSS OF 13 MILLION OR 27 CENTS A SHARE DUE TO CHARGES ASSOCIATED WITH DISCONTINUING CERTAIN OPERATIONS THE RESULTS REFLECT A LOSS OF 18 MILLION FROM THE MONTVALE NJ COMPANY'S DECISION TO DISCONTINUE CERTAIN BUSINESS UNITS INVOLVING ASSET RECLAMATION AND HEAVY EQUIPMENT TELEPHONE CONSTRUCTION BUTLER WHICH CONTRACTS OUT TECHNICAL SERVICES FOR INDUSTRIAL CORPORATIONS HAD A LOSS IN THE 1992 SECOND QUARTER OF 14 MILLION OR 32 CENTS A SHARE SALES FROM CONTINUING OPERATIONS ROSE 18 TO 753 MILLION FROM 634 MILLION IN THE 1992 SECOND QUARTER 9308060057 930806 BUSINESS BRIEF HOME OIL CO CONCERN SEEKS FULL HOLDING OF ITS SCURRYRAINBOW UNIT HOME OIL CO ALBERTA CALGARY SAID IT PROPOSED TO BUY ALL THE SHARES THAT IT DOESN'T OWN OF 881HELD SCURRYRAINBOW OIL LTD THE TRANSACTION WOULD HAVE A VALUE OF ABOUT 424 MILLION CANADIAN DOLLARS US329 MILLION ROBERT PERRIN VICE PRESIDENT AND GENERAL COUNSEL OF BOTH CALGARY OIL AND GAS COMPANIES SAID THE PROPOSED PRICE IS C2650 US2056 A SHARE IN TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE SCURRY SHARES CLOSED AT US20375 UP US3375 OR 20 PERRIN SAID THAT SINCE SCURRY DOESN'T HAVE STAFF OF ITS OWN AND ALL ITS OFFICERS ARE HOME'S OFFICERS THE PROPOSED MERGER WOULD HAVE LITTLE EFFECT ON EITHER COMPANY'S OPERATIONS OR PERSONNEL THE MERGER'S MAIN EFFECT WILL BE TO SAVE HOME ABOUT C1 MILLION A YEAR IN ADMINISTRATIVE COSTS ASSOCIATED WITH MAINTAINING TWO PUBLIC COMPANIES HE SAID THE TRANSACTION IS SUBJECT TO REGULATORY COURT AND SCURRY BOARD AND SHAREHOLDER APPROVAL 9308060056 930806 INTERNATIONAL BRIEF TI GROUP PLC PRETAX PROFIT FOR FIRST HALF ROSE 25 FROM YEAR EARLIER THE UNITED KINGDOM ENGINEERING CONCERN TI GROUP PLC SAID ITS FIRSTHALF ACCOUNTS SHOW PRETAX PROFIT ROSE 25 BOOSTED BY COSTCUTTING MOVES AND THE FIRSTTIME CONTRIBUTION OF ITS AEROSPACE UNIT DOWTY EXCLUDING DOWTY THE COMPANY SAID RESULTS WOULD HAVE BEEN SIMILAR TO THE YEAREARLIER FIGURE PRETAX PROFIT TOTALED 628 MILLION 942 MILLION UP FROM 502 MILLION A YEAR EARLIER SALES JUMPED 56 TO 7367 MILLION FROM 4714 MILLION TI GROUP INCREASED ITS INTERIM DIVIDEND 41 TO 385 PENCE A SHARE AND PROFIT ATTRIBUTABLE TO SHAREHOLDERS WAS 414 MILLION UP FROM 328 MILLION A YEAR EARLIER 9308060055 930806 TECHNOLOGY BRIEF OCOM CORP BRITAIN POISED TO ALLOW FIRM TO PROCEED WITH PURCHASE OCOM CORP SAID THE BRITISH OFFICE OF TELECOMMUNICATIONS INDICATED IT WILL ALLOW THE COMPANY TO TRANSFER LICENSES AS PART OF ITS PLANNED ACQUISITION OF INSIGHT COMMUNICATION'S UK INTERESTS THE MOVE WHILE INFORMAL PAVES THE WAY FOR OCOM TO PROCEED WITH THE ACQUISITION THE DECISION HOWEVER WAS CONTINGENT ON OCOM COMPLETING A COMMON STOCK OFFERING AND OTHER REQUIREMENTS IN NATIONAL OVERTHECOUNTER TRADING SHARES OF OCOM ROSE 186 OR 275 TO 1750 OCOM PROVIDES LONGDISTANCE PHONE SERVICE TO CELLULAR SUBSCRIBERS AS WELL AS RESELLING THIRDPARTY LONGDISTANCE PHONE LINES INSIGHT'S UK OPERATIONS PROVIDE CABLE TELEVISION AND OWN LICENSES TO PROVIDE CABLE TV AND TELEPHONE SERVICE 9308060054 930806 INTERNATIONAL EUROPE DRAGS ITS FEET ON INTEREST RATES A DELAY IN CUTS CAN REPLENISH COFFERS HELP ERM BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS EUROPEAN MONETARY AUTHORITIES ARE IGNORING THEIR NEW FREEDOM AND KEEPING INTEREST RATES AT HIGH LEVELS AT LEAST FOR THE MOMENT OUT OF A COMBINATION OF POLITICAL CONVICTION AND FINANCIAL NECESSITY MONETARY OFFICIALS AND PRIVATE ECONOMISTS NONETHELESS BELIEVE THAT THE CURRENT LEVELS AREN'T SUSTAINABLE FOR LONG AND THAT RATES WILL START TO EASE SOON SO FAR ONLY SPAIN AND PORTUGAL HAVE REDUCED THEIR INTEREST RATES THIS WEEK WITH SWEDEN SAYING IT WOULD CUT A RATE MONDAY FRANCE BELGIUM AND DENMARK ARE KEEPING THEIR RATES AT LEVELS UNCHANGED FROM THE HIGH POINT OF THE CRISIS ONE WEEK AGO IN DOING SO SEVERAL OF THE CONTINENT'S CENTRAL BANKS SEEM MOTIVATED BY A DESIRE TO RECOVER SOME OF THEIR DEPLETED FOREIGNEXCHANGE RESERVES AND AVOID POTENTIAL HUGE TRADING LOSSES THE BANKS WERE FORCED TO INTERVENE HEAVILY LAST WEEK TO PROP UP THEIR CURRENCIES DURING THE TURBULENCE THAT FINALLY LED TO THE ABANDONMENT OF THE EUROPEAN COMMUNITY'S SYSTEM OF MAINTAINING CURRENCIES WITHIN A NARROW TRADING RANGE THE FRENCH CENTRAL BANK ALONE SPENT 300 BILLION FRANCS 506 BILLION ON INTERVENTION IN ITS FAILED ATTEMPT TO PREVENT A DEVALUATION OF THE FRANC ACCORDING TO LE MONDE NEWSPAPER THE BANQUE DE FRANCE REFUSED ALL COMMENT ON THE INTERVENTION FIGURE BUT A REGULAR STATEMENT ISSUED YESTERDAY SHOWED THAT ITS FOREIGNEXCHANGE RESERVES HAD DWINDLED VIRTUALLY TO ZERO IN THE PAST WEEK FROM MORE THAN 100 BILLION FRANCS IN DENMARK WHOSE CURRENCY ALSO SUFFERED MASSIVE WAVES OF ATTACK DURING THE CRISIS THE NATIONAL BANK WEDNESDAY ANNOUNCED THAT IT SPENT 50 BILLION CROWNS 74 BILLION ON INTERVENTION IN JULY HALF OF THAT DURING THE LAST DAYS OF THE MONTH ALONE LARGELY TO REPLACE SOME OF THE RESERVES DENMARK YESTERDAY ISSUED A 12 BILLION 18 BILLION EUROBOND THE LARGEST BOND EVER ISSUED IN THE EUROSTERLING MARKET BECAUSE THEY BORROWED AND SOLD GERMAN MARKS TO BUY UP THEIR OWN CURRENCIES DURING LAST WEEK'S CRISIS THE CENTRAL BANKS HAVE A MAJOR VESTED INTEREST IN KEEPING INTEREST RATES HIGH AND THEIR CURRENCIES STRONG AS THEY REPLENISH THEIR COFFERS TO DO OTHERWISE ALLOWING THEIR CURRENCIES TO FALL WOULD LEAD TO ENORMOUS LOSSES AS THEY SOUGHT TO BUY BACK AND REPAY THE GERMAN MARKS THEY HAD BORROWED BUT RATES ALSO REMAIN HIGH BECAUSE GOVERNMENTS HAVE A STRONG INTEREST IN TRYING TO SALVAGE AS MUCH AS POSSIBLE OF THE EUROPEAN MONETARY SYSTEM'S EXCHANGE RATE MECHANISM WHICH HAD BECOME THE CORNERSTONE OF THE EC'S FUTURE PLANS FOR A MONETARY UNION OVER THE PAST FEW DAYS POLITICIANS ACROSS THE CONTINENT HAVE INSISTED THAT THE SYSTEM REMAINS INTACT EVEN THOUGH THE PERMISSIBLE FLUCTUATION RANGE FOR CURRENCIES WAS ENLARGED TO 15 FROM 225 THEY PLEDGE THEY WON'T RACE TO DEVALUE THEIR CURRENCIES TO GAIN SHORTTERM COMPETITIVE ADVANTAGE OVER ONE ANOTHER BELGIUM'S FINANCE MINISTER PHILIPPE MAYSTADT IN PUBLIC COMMENTS TYPICAL OF OFFICIALS THROUGHOUT THE EUROPEAN COMMUNITY WAS QUOTED IN A BELGIAN NEWSPAPER YESTERDAY AS SAYING THE BELGIAN FRANC WOULD CONTINUE TO SHADOW THE GERMAN MARK AS CLOSELY AS POSSIBLE OUR POLICY WILL REMAIN FUNDAMENTALLY UNCHANGED MR MAYSTADT SAID IN MILAN ITALY'S TREASURY MINISTER PIERO BARUCCI SAID EC NATIONS SHOULD WORK TO BUILD A NEW MORE WORKABLE FIXED CURRENCY SYSTEM IN A FEW WEEKS SUCH TALK MAY BE PARTLY BRAVADO GIVEN THE ECONOMIC AND FINANCIAL DISPARITIES AMONG EUROPEAN COUNTRIES THAT LED TO THE IMPLOSION OF THE SYSTEM IN THE FIRST PLACE BUT THERE IS LITTLE DOUBT THAT THE TACTIC OF KEEPING INTEREST RATES HIGH IS HAVING A POWERFUL IMPACT IN THE MARKETS HELPED BY AN EASING OF GERMAN MARKET RATES THIS WEEK MOST CURRENCIES NOW ARE IN FACT TRADING CLOSE TO OR WITHIN THEIR OLD NARROW RANGE AGAINST THE MARK AND SPECULATORS WHO BORROWED TO MAKE A QUICK BUCK DURING THE CRISIS ARE FEELING THE SQUEEZE BUT THE PREVAILING MARKET VIEW IS THAT HIGH RATES ARE ONLY TEMPORARY PARTICULARLY IN FRANCE THE NATION THAT IS BEING WATCHED MOST CLOSELY MIRED IN RECESSION AND WITH UNEMPLOYMENT RISING FRANCE CAN'T AFFORD NOT TO REDUCE ITS RATES THE ARGUMENT GOES THEIR STRATEGY IS TO HOLD OUT AS LONG AS POSSIBLE TO SHAKE OUT THE SPECULATORS AND THEN CUT RATES INTO STRENGTH RATES WILL COME DOWN SAYS NIGEL RICHARDSON AN INTERNATIONAL ECONOMIST AT YAMAICHI INTERNATIONAL LTD IN LONDON IN THE LONGER TERM ONCE RATES HAVE FALLEN MR RICHARDSON SAYS I DON'T THINK IT'S INCONCEIVABLE THAT THE EXCHANGE RATE MECHANISM COULD BE PUT BACK TOGETHER AGAIN THE EXAMPLE OF THE NETHERLANDS HELPS EXPLAIN WHY GOVERNMENTS THROUGHOUT THE EC ARE SO KEEN TO HAVE A SYSTEM THAT ENABLES THEM TO CONTINUE SHADOWING THE MARK IN MANY WAYS THE DUTCH ARE THE ECONOMIC MODEL MOST OTHER EUROPEAN NATIONS WOULD LIKE TO FOLLOW THE DUTCH HAVE ADOPTED GERMANY'S TOUGH ANTIINFLATION STANCE AND STUCK CLOSE TO THE MARK SINCE 1983 RAISING AND LOWERING THEIR INTEREST RATES VIRTUALLY IN LOCKSTEP WITH THEIR BIG NEIGHBOR ARNOUD WELLINK AN EXECUTIVE DIRECTOR OF THE DUTCH CENTRAL BANK SAID RECENTLY THAT THE NETHERLANDS REALLY HAS NO MONETARY POLICY OF ITS OWN ALTHOUGH THIS MAY BE DEPLORABLE THERE IS NO SENSE IN CLOSING OUR EYES TO MONETARY REALITY MR WELLINK SAID BY ALL ACCOUNTS THE STRATEGY HAS WORKED ADMIRABLY AS INFLATION IN HOLLAND HAS BEEN HALVED FROM ITS LEVEL IN THE 1970S AND THE NATION'S COMPETITIVENESS HAS GROWN WITH GERMANY NOW STRUGGLING WITH ITS OWN BUDGET PROBLEMS AS IT TRIES TO REBUILD THE FORMER COMMUNIST PART OF THE COUNTRY THE NETHERLANDS HAS SEEN ITS INTEREST RATES DROP BELOW THOSE OF ITS NEIGHBOR THE LONG DUTCH TRACK RECORD OF STICKING WITH THE MARK AND THE NATION'S RELATIVELY STRONG ECONOMY UNEMPLOYMENT IS RISING BUT ITS CURRENT RATE OF 8 OF THE WORK FORCE IS STILL SUBSTANTIALLY LESS THAN SAY DENMARK'S AT 12 ARE NOW PAYING OFF THE DUTCH GUILDER WAS BARELY TOUCHED BY FOREIGNEXCHANGE MARKET SPECULATORS DURING THE RECENT CURRENCY CRISIS MOREOVER DURING THE CRISIS TALKS LAST WEEKEND DUTCH OFFICIALS EFFECTIVELY SCOTCHED A FRENCH PROPOSAL TO TAKE THE GERMAN MARK OUT OF THE MONETARY SYSTEM THE DUTCH OFFICIALS INSISTED THE NETHERLANDS WOULD LEAVE THE SYSTEM IF THE GERMANS DID AND THE PROPOSAL WAS EVENTUALLY DROPPED IN FAVOR OF WIDENING THE RANGE IN WHICH CURRENCIES COULD FLUCTUATE AGAINST EACH OTHER EVEN THAT WASN'T GOOD ENOUGH FOR THE DUTCH THEY SWIFTLY ANNOUNCED AN AGREEMENT WITH GERMAN AUTHORITIES THAT THE TWO NATIONS WOULD MAINTAIN THE OLD 225 RANGE ALTHOUGH DUTCH ECONOMISTS ACKNOWLEDGE THAT KEEPING CLOSE TO GERMANY WITH ITS RELATIVELY HIGH RATES IS PAINFUL THERE IS A STRONG NATIONAL CONSENSUS THAT IT IS THE BEST COURSE TO FOLLOW FOR THE LONGERTERM HEALTH OF THE NATION'S ECONOMY THE SLOWER YOU GO THE LOWER YOU GET SAYS PIETER WIND AN ECONOMIST AT ING BANK IN AMSTERDAM WHILE STICKING WITH HIGH GERMAN RATES MAY BRING SHORTTERM PROBLEMS THE DUTCH EXPERIENCE SHOWS YOU CAN LOWER INTEREST RATES FURTHER THAN OTHER COUNTRIES IN THE LONG RUN THAT ORTHODOXY IS WIDESPREAD ON THE CONTINENT AS CHARLES WYPLOSZ A FRENCH ECONOMIST WROTE IN AN ESSAY PUBLISHED IN THE NEWSPAPER LIBERATION YESTERDAY IF LOWERING INTEREST RATES AND ALLOWING THE CURRENCY TO SLIDE WERE ALL IT TOOK TO BOOST THE ECONOMY PEOPLE WOULD KNOW ABOUT IT AND BRAZIL WOULD BE THE RICHEST COUNTRY IN THE WORLD 9308060053 930806 INTERNATIONAL PHILIPS POSTS BIG RISE IN NET FOR 2ND PERIOD BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL AFTER THREE YEARS OF COUGHING AND SPUTTERING PHILIPS ELECTRONICS NV FINALLY MAY BE RECOVERING ITS FINANCIAL HEALTH YESTERDAY THE DUTCH ELECTRONICS GIANT REPORTED STRONGER THAN EXPECTED SECONDQUARTER EARNINGS A HUGE JUMP IN CASH FLOW AND A DROP IN DEBT THOUGH PLENTY OF PROBLEMS AND RISKS STILL LIE AHEAD THERE IS AN INCREASING CONSENSUS THAT THERE IS INDEED LIGHT AT THE END OF THE TUNNEL SAID ANALYST ROBERT SWEERS OF AN AMSTERDAMBASED UNIT OF FRANCE'S BANQUE PARIBAS THE STOCK MARKET AGREED AS PHILIPS SHARES ALREADY BUOYANT IN RECENT WEEKS AS THE COMPANY'S PROSPECTS BRIGHTENED CLIMBED 160 GUILDERS A SHARE TO 3480 GUILDERS 1809 IN TRADING ON THE AMSTERDAM STOCK EXCHANGE THE MARKETPLEASING NUMBERS INCLUDED A 38 RISE IN PROFIT FROM NORMAL BUSINESS TO 117 MILLION GUILDERS 608 MILLION FROM 79 MILLION GUILDERS A YEAR EARLIER AFTER A ONETIME GAIN FROM THE SALE OF AN AFFILIATE NET INCOME JUMPED 15FOLD TO 121 BILLION GUILDERS OR 386 GUILDERS A SHARE FROM 79 MILLION GUILDERS OR 025 GUILDER A SHARE SALES SLIPPED 13 TO 1349 BILLION GUILDERS FROM 1367 BILLION GUILDERS ANALYSTS ALSO DREW CHEER FROM PHILIPS'S HAVING GENERATED 47 BILLION GUILDERS MORE CASH THAN IT SPENT IN THE HALFYEAR COMPARED WITH A 179 BILLION GUILDER CASH DEFICIT A YEAR EARLIER THE IMPROVEMENTS STEMMED PARTLY FROM A THREEYEAR COSTCUTTING PROGRAM THAT AMONG OTHER THINGS HELPED REDUCE LOSSES IN PHILIPS'S KEY CONSUMER ELECTRONICS DIVISION THE COMPANY ALSO BENEFITED FROM RISING MARKET PRICES AND PROFITS FOR ITS SEMICONDUCTORS OVERALL THE EARNINGS REPORT MARKED PHILIPS'S SECOND CONSECUTIVE QUARTER OF PROFIT AFTER A NET LOSS LAST YEAR OF 900 MILLION GUILDERS OF COURSE PHILIPS HAS BEEN HERE BEFORE AND ENDED UP DISAPPOINTING STOCKMARKET OPTIMISTS IN 1991 IT APPEARED TO HAVE RECOVERED FROM A LOSS OF 424 BILLION GUILDERS THE YEAR EARLIER ONLY TO SPLASH BACK INTO THE RED IN 1992 AS THE RECESSION HURT ITS CORE CONSUMERELECTRONICS BUSINESS IN RESPONSE IT REDOUBLED ITS COSTCUTTING EFFORTS SINCE 1990 IT HAS CUT ITS WORK FORCE BY MORE THAN 36000 OR 12 SHAKEN UP TOP MANAGEMENT AND SOLD TROUBLED UNITS THAT MADE COMPUTERS MEMORY CHIPS AND DEFENSE ELECTRONICS ITS BUSINESSES NOW MAKE LIGHT BULBS TELEVISIONS COMPACT DISK PLAYERS MEDICAL SCANNERS AND MUSICAL RECORDINGS AMONG OTHER THINGS TO RAISE MORE CASH IT HAS LATELY STEPPED UP EFFORTS TO SELL ASSETS THE SECONDQUARTER GAIN OF 11 BILLION GUILDERS IS FROM THE SALE OF PHILIPS'S 35 STAKE IN JAPAN'S MATSUSHITA ELECTRONICS CORP PARTLY BY CUTTING JOBS AND OTHER COSTS THE CRUCIAL CONSUMERELECTRONICS DIVISION NARROWED ITS OPERATING LOSS IN THE HALFYEAR TO 150 MILLION GUILDERS FROM 177 MILLION GUILDERS A YEAR EARLIER THE IMPROVEMENT CAME DESPITE A 4 FALL IN DIVISION SALES TO 961 BILLION GUILDERS PHILIPS REITERATED ITS PREVIOUS FORECASTS THAT IT EXPECTS THE DIVISION TO BREAK EVEN NEXT YEAR 9308060052 930806 TECHNOLOGY & HEALTH GRACE DISCLOSES FDA BANNED IMPORTS OF ITS WIDELY USED DIALYSIS PRODUCTS BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL THE FOOD AND DRUG ADMINISTRATION HAS BANNED WR GRACE & CO FROM IMPORTING TO THE US ITS WIDELY USED KIDNEYDIALYSIS PRODUCTS CITING FAULTY MANUFACTURING AND QUALITYCONTROL PRACTICES AT GRACE PLANTS IN IRELAND AND MEXICO THE FDA ACTION WHICH CAME SEVERAL MONTHS AGO BUT ONLY WAS DISCLOSED YESTERDAY BY GRACE FOLLOWED ROUTINE PLANT INSPECTIONS THIS SPRING THAT TURNED UP VIOLATIONS IN MANUFACTURING PRACTICES THAT RAISED SERIOUS CONCERNS ABOUT THE QUALITY AND SAFETY OF THEIR DEVICES SAID FDA SPOKESWOMAN SHARON SNIDER THE EMBARGO ISN'T BASED ON ANY KNOWN ADVERSE HEALTH EFFECTS CAUSED BY GRACE DIALYSIS PRODUCTS WHICH ARE SOLD BY THE SPECIALTYCHEMICAL AND HEALTHCARE COMPANY'S NATIONAL MEDICAL CARE INC UNIT GRACE OFFICIALS SAID THE BAN COULD LAST AS LONG AS A YEAR BUT LIKELY WILL BE LIFTED IN STAGES THE COMPANY ADDED THE BAN APPLIES TO PLASTIC DIALYSIS BLOOD LINES MADE AT A PLANT IN REYNOSA MEXICO AND DIALYZERS WHICH SEPARATE WASTES FROM BLOOD MANUFACTURED IN DUBLIN LATE LAST MONTH THE FDA TOLD GRACE THAT IT COULD TEMPORARILY IMPORT A LIMITED QUANTITY OF BLOOD LINES FROM MEXICO TO PREVENT A SHORTAGE WHILE OTHER MANUFACTURERS GEAR UP PRODUCTION AFTER GRACE DISCLOSED THE EMBARGO YESTERDAY MORNING ITS SHARES SKIDDED 2125 OR 53 TO 3775 IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE FDA EMBARGO IS A BLOW TO GRACE AND NATIONAL MEDICAL CARE WHICH IS THE NATION'S LEADING PROVIDER OF DIALYSIS PRODUCTS AND SERVICES WITH MORE THAN 400 CLINICS IN THE US GRACE BASED IN BOCA RATON FLA HAD BEEN COUNTING ON NATIONAL MEDICAL TO PROVIDE MUCH OF ITS PROJECTED EARNINGS GROWTH FOR THE NEXT SEVERAL YEARS ANALYSTS SAID LAST YEAR NATIONAL MEDICAL HAD PROFIT OF 106 MILLION AND REVENUE OF 128 BILLION ABOUT 31 OF GRACE'S TOTAL REVENUE AND OPERATING INCOME MOST OF NATIONAL MEDICAL'S RESULTS ARE DERIVED FROM THE DIALYSIS BUSINESS ANALYSTS COMPLAINED THAT THE EMBARGO WHICH WAS IMPLEMENTED IN STEPS IN LATE MAY AND EARLY JUNE SHOULD HAVE BEEN DISCLOSED BY GRACE MUCH EARLIER THERE'S AN ISSUE OF CREDIBILITY HERE SAID JAINE MEHRING AN ANALYST WITH PRUDENTIAL SECURITIES INC WHO LAST MONTH RECOMMENDED THAT CLIENTS BUY THE STOCK IN PART BASED ON NATIONAL MEDICAL'S PROSPECTS BUT GRACE SPOKESMAN CHUCK SUITS SAID THE COMPANY DIDN'T CONSIDER THE EMBARGO A MATERIAL EVENT THAT NEEDED DISCLOSING GRACE IS CONTINUING TO SELL THE TARGETED PRODUCTS OUTSIDE THE US HE SAID CITING BETTERTHANESTIMATED INCOME FROM ACQUISITIONS MADE IN THE PAST YEAR HE SAID THE EMBARGO WON'T REDUCE THE EXPECTED EARNINGS GROWTH FROM GRACE'S HEALTHCARE BUSINESSES HE SAID THAT IN THIS YEAR'S FIRST HALF GRACE'S HEALTHCARE OPERATING INCOME JUMPED 36 TO 63 MILLION COMPARED WITH THE FIRST SIX MONTHS OF 1992 GRACE SAID THE FDA ACTIONS PERTAIN TO DOCUMENTATION PROCEDURES AND PRACTICES BUT FDA LETTERS NOTIFYING GRACE OF THE IMPORT BANS INDICATED MORE WIDERANGING PROBLEMS AT THE PLANTS THE FDA SAID ITS MARCH INSPECTION OF THE MEXICAN PLANT FOUND ONE WORKER HANDLING THE FILTER COMPONENT OF A BLOOD LINE WITHOUT GLOVES OR OTHER MEANS TO LIMIT BACTERIAL CONTAMINATION THE AGENCY ALSO NOTED THAT SOME PLASTIC TUBING PRODUCED AT THE PLANT LAST SUMMER WAS TAINTED BY AN UNKNOWN CONTAMINANT BUT THAT GRACE DIDN'T IDENTIFY THE SUBSTANCE AND TOOK NO STEPS TO PREVENT A RECURRENCE OF THE PROBLEM THE FDA SAID AT THE DUBLIN PLANT THE FDA TOLD GRACE THAT IMPROPER CURING OF POLYURETHANE SEALS LED TO CONFIRMED CASES OF SEPARATION OF THE POLYURETHANE SEAL FROM THE DIALYZER CASING THE FDA ADDED THAT IT COULD FIND NO STATISTICAL RATIONALE FOR THE COMPANY'S TESTING ONLY TWO DIALYZERS OUT OF EACH BATCH OF 6192 LASTLY THE QUALITYASSURANCE MANAGER WAS NOT AWARE OF OR FAMILIAR WITH GRACE'S ESTABLISHED PROCEDURES FOR INVESTIGATING PRODUCT DEFECTS FOR WHICH HE WAS DIRECTLY RESPONSIBLE THE FDA SAID GRACE SAID IT'S CONFIDENT THAT ITS PROCEDURES AND CONTROLS ASSURE QUALITY PRODUCTS FOR SAFE USE BUT SOME COMPANY OFFICIALS PRIVATELY HAVE TOLD ANALYSTS THERE'S ROOM FOR IMPROVEMENT THE COMPANY HAS ACKNOWLEDGED THAT IT NEEDS A PLAN TO READJUST THE PRODUCT SIDE OF THE BUSINESS TO BOOST QUALITY SAID MS MEHRING OF PRUDENTIAL SECURITIES 9308060051 930806 BUSINESS BRIEF GULF CANADA RESOURCES LTD LOAN FOR JOINT VENTURE'S OIL PRODUCTION APPROVED GULF CANADA RESOURCES LTD OF CALGARY ALBERTA AND A UNIT OF BRITISH GAS PLC SAID THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT APPROVED AN 80 MILLION PROJECTFINANCING LOAN TO KOMIARCTICOIL A RUSSIAN JOINT VENTURE IN WHICH THE TWO WESTERN ENERGY COMPANIES EACH HOLD A 25 INTEREST JOHN SPARKS A SPOKESMAN FOR OIL AND GAS PRODUCER GULF SAID THE LOAN WILL ALLOW COMPLETION OF TWO OF THE NORTHERN RUSSIAN PROJECT'S ANTICIPATED FOUR PHASES UNDER PHASE ONE NEARING COMPLETION THE JOINT VENTURE IS PRODUCING ABOUT 15000 BARRELS OF OIL A DAY FROM ROUGHLY 70 MILLION BARRELS OF DEVELOPED RESERVES PHASE TWO WHICH IS SCHEDULED TO COMMENCE IN THE 1993 FOURTH QUARTER AND BE COMPLETED TWO YEARS LATER WILL DEVELOP ANOTHER 60 MILLION BARRELS OF RESERVES HE SAID MR SPARKS SAID PHASE ONE PROJECT COSTS COULD RUN AS HIGH AS 120 MILLION TO WHICH GULF HAS CONTRIBUTED 11 MILLION BRITISH GAS ABOUT 39 MILLION AND THE JOINT VENTURE'S RUSSIAN PARTNERS ABOUT 60 MILLION HE SAID PHASE TWO COSTS ARE EXPECTED TO BE BETWEEN 80 MILLION AND 100 MILLION AND THAT CASH GENERATED BY THE PROJECT WILL BE USED TO FINANCE PART OF THE EXPANSION 9308060050 930806 WHO'S NEWS HJ HEINZ'S CONNOLLY SENIOR VICE PRESIDENT WILL RETIRE ON DEC 1 PITTSBURGH J WRAY CONNOLLY WILL RETIRE AS A SENIOR VICE PRESIDENT AT HJ HEINZ CO EFFECTIVE DEC 1 A HEINZ SPOKESMAN SAID MR CONNOLLY 59 YEARS OLD HAD LONG INTENDED TO RETIRE AT AGE 60 MR CONNOLLY OVERSEES SEVERAL OF THE FOOD MANUFACTURER'S BUSINESSES IN THE US AND CANADA INCLUDING HEINZ NORTH AMERICA AND STARKIST FOODS MR CONNOLLY'S DUTIES WILL BE ASSUMED BY WILLIAM R JOHNSON 44 PRESIDENT AND CHIEF EXECUTIVE OFFICER OF HEINZ'S STARKIST FOODS UNIT AND WILLIAM C SPRINGER 53 PRESIDENT OF HEINZ NORTH AMERICA WHO WILL BECOME SENIOR VICE PRESIDENTS IN ADDITION MESSRS JOHNSON AND SPRINGER WILL BE NOMINATED TO HEINZ'S BOARD UPON THEIR ELECTION THE BOARD WOULD HAVE 17 DIRECTORS ACCORDING TO HEINZ'S PROXY RELEASED THIS WEEK MR CONNOLLY EXERCISED OPTIONS ON 650448 SHARES EARNING 207 MILLION IN ADDITION MR CONNOLLY RECEIVED A PAYMENT OF 3 MILLION UNDER THE COMPANY'S SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN THE PROXY ALSO SAID R DEREK FINLAY RETIRED MAY 31 AS A DIRECTOR AND A SENIOR VICE PRESIDENT IN CHARGE OF CORPORATE DEVELOPMENT AND ASIA/PACIFIC OPERATIONS SEPARATELY DAVID W SCULLEY A SENIOR VICE PRESIDENT IN CHARGE OF WEIGHT WATCHERS AND OREIDA EXERCISED OPTIONS ON 137880 SHARES EARNING 49 MILLION ANTHONY JF O'REILLY CHAIRMAN AND CHIEF EXECUTIVE OFFICER RECEIVED 28 MILLION IN SALARY BONUS INCENTIVE PAY AND OTHER COMPENSATION IN THE YEAR ENDED APRIL 28 DOWN FROM 32 MILLION THE PREVIOUS YEAR MR O'REILLY DID NOT EXERCISE STOCK OPTIONS IN THE LATEST FISCAL YEAR 9308060049 930806 BUSINESS BRIEF ITT CORP AUTOMOTIVE UNIT'S BACKLOG FOR BRAKES HITS 75 BILLION ITT AUTOMOTIVE SAID ITS BACKLOG OF ANTILOCK BRAKINGSYSTEM ORDERS INCREASED TO 75 BILLION AND EXTENDS THROUGH 1998 THE COMPANY SAID THE BACKLOG WAS BOOSTED BY A RECENT 1 BILLION ORDER FROM A EUROPEAN AUTO MAKER ITT AUTOMOTIVE DECLINED TO IDENTIFY THE AUTO MAKER BUT SAID THE ORDER WILL BE SPREAD OVER A NUMBER OF YEARS ITT AUTOMOTIVE AUBURN HILLS MICH HAS ANNUAL SALES OF ABOUT 35 BILLION IT IS A UNIT OF NEW YORK'S ITT CORP A DIVERSIFIED COMPANY WITH INTERESTS IN DEFENSE INSURANCE FINANCIAL SERVICES AND HOTELS 9308060048 930806 ECONOMY FOOD PRICES MAY FACE UPWARD PRESSURE FROM FLOODS AND DROUGHT THIS SUMMER BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL THAT PICNIC OF FRIED CHICKEN AND CORN ON THE COB COULD COST YOU MORE BEFORE SUMMER IS OVER IF IT DOES BLAME IT ON THE WEATHER SWEET CORN IS AMONG THE EARLY CASUALTIES OF THIS YEAR'S POOR GROWING CONDITIONS IN WIDE SWATHS OF THE US PRICES ON FRESH EARS ARE UP 50 AND MORE IN SOME MARKETS AND BECAUSE CHICKENS FEED ON MEAL MADE FROM SOYBEANS AND FIELD CORN TWO OTHER HARDHIT CROPS POULTRY ALSO IS LIKELY TO BECOME MORE EXPENSIVE THE NATION'S LARGEST CHICKEN PROCESSOR TYSON FOODS INC SAID IT WILL DECIDE WITHIN 30 DAYS WHETHER TO PASS ON HIGHER FEED COSTS TO CONSUMERS IT'S STILL TOO EARLY TO KNOW IF THE WEATHER'S DOUBLE WHAMMY FLOODS IN THE MIDWEST AND DROUGHT IN THE SOUTHEAST WILL CAUSE BROAD INCREASES IN FOOD PRICES MANY FOOD PROCESSORS ARE RELUCTANT TO SAY WHETHER THEY WILL RAISE PRICES BECAUSE OF HIGHER COSTS OF INGREDIENTS MANY SAID THEY WILL WAIT UNTIL AFTER THEY SEE WEDNESDAY'S CROPSURVEY REPORT FROM THE AGRICULTURE DEPARTMENT BUT SOME COMPANIES AREN'T WAITING MAJOR PROCESSORS OF CANNED AND FROZEN PEAS GREEN BEANS AND CORN ALREADY ARE RAISING PRICES BECAUSE PLANNED REDUCTIONS IN PLANTED ACRES WERE UNEXPECTEDLY MULTIPLIED BY BAD WEATHER WE HAD MANY FIELDS WE COULDN'T GET OUR HARVESTERS INTO SAID A SPOKESMAN FOR DEL MONTE FOODS INC AS A RESULT DEL MONTE RESCINDED A PLANNED PRICE REDUCTION ON CANNED PEAS EARLIER THIS WEEK GREEN GIANT PART OF GRAND METROPOLITAN PLC'S PILLSBURY CO UNIT RAISED PRICES 9 ON BAGS OF FROZEN PEAS CORN AND BEANS FRESH PRODUCE ALSO IS BEING HIT IN PART BY HIGHER FREIGHT COSTS WHAT WAS COSTING ME 230 IS NOW 325 FOR A BOX OF PEACHES SAID NICK CHIUSOLO OF STRUBE CELERY & VEGETABLE CO CHICAGO NOTING THAT WHAT NORMALLY CAME IN BY RAIL WENT VIA TRUCK WHEN TRACKS WERE WASHED OUT MIDWEST ROOT CROPS SUCH AS CARROTS AND BEETS ARE LOSING QUALITY IN SUPERSATURATED SOIL CROPS OF PEPPERS CUCUMBERS AND ZUCCHINI HAVE BEEN PINCHED AS WELL AND REPLACEMENT SHIPMENTS FROM THE WEST COAST WILL COST MORE INDUSTRY SOURCES SAID SEVERAL KEY INGREDIENTS USED IN MANY PROCESSED FOODS SOYBEAN OIL FOR EXAMPLE ALSO ARE EXPERIENCING PRICECREEP BUT WHAT COULD RESTRAIN PRICE INCREASES IN MANY PRODUCTS IS THE PROCESSORS' RELUCTANCE TO RAISE PRICES DURING A PERIOD OF LOW INFLATION AND INTENSE COMPETITION THE THREAT OF GRUMPY CONSUMERS AND IN SOME CATEGORIES THE THREAT OF PRIVATE LABEL ARE KEEPING A LID ON PRICING SAID RICHARD DAVIS FOODINDUSTRY ANALYST AT WESSELS ARNOLD & HENDERSON IN MINNEAPOLIS IF THERE IS SQUEEZING IT WILL LIKELY BE ON MANUFACTURERS ADDED LARRY WIPF AGRICULTURAL ECONOMIST AT MINNEAPOLIS BANKHOLDING CONCERN NORWEST CORP OVERALL WE THINK FOODPRICE INFLATION WILL BE QUITE MODERATE COMMODITIES OFTEN REPRESENT ONLY A SMALL PORTION OF A PRODUCT'S TOTAL PRICE BUT SOME BIG FOOD PROCESSORS HEDGED WHEN ASKED ABOUT THEIR PRICING INTENTIONS WE ARE EXPERIENCING SOME FOODPRICE INCREASES SAID A SPOKESWOMAN FOR KRAFT GENERAL FOODS A UNIT OF PHILIP MORRIS COS AND THE NATION'S LARGEST FOOD COMPANY AS A GENERAL RULE WHEN COMMODITY COSTS INCREASE WE TRY TO REFLECT THOSE IN PRODUCT COSTS SHE SAID CASH PRICES FOR SOYBEAN OIL A COMMON COOKING MEDIUM HAVE JUMPED RECENTLY AND A SPOKESMAN FOR THE FRITOLAY UNIT OF PEPSICO INC SAID FRITOLAY ANTICIPATES FURTHER INCREASES BUT WILL THE BIG MAKER OF POTATO CHIPS AND OTHER SNACKS PASS ON THOSE COSTS TYPICALLY WE DO NOT BUT WE DON'T WANT TO BE PINNED DOWN HE SAID OUR BIG CONCERN IS WHETHER CROPS WILL MAKE MATURITY THIS FALL SAID WILLIAM BOLLINK A COMMODITIES ANALYST AT GENERAL MILLS INC HE SAID SOME WINTER WHEATS IN KANSAS AND NEBRASKA ARE SHOWING DIMINISHED PROTEIN QUALITY SO WE HAVE TO PAY EXTRAORDINARILY HIGH PREMIUMS TO GET WHEAT FOR CERTAIN TYPES OF FLOUR A SPOKESWOMAN FOR HERSHEY FOODS CORPA MAJOR PASTA MANUFACTURER SAID THAT DESPITE HIGHER DURUM WHEAT COSTS BECAUSE OF HEAVY RAINS THE COMPANY HASN'T YET RAISED PRICES ADDED TRANSPORTATION COSTS HAVE RAISED THE PRICE OF ANOTHER KEY INGREDIENT HIGH FRUCTOSE CORN SYRUPA SWEETENER USED IN SOFT DRINKS AND MANY OTHER FOOD ITEMS A SPOKESMAN FOR PEPSICO'S PEPSICOLA BOTTLING UNIT SAID THAT ALTHOUGH THE MIDWEST FLOODS SHOULDN'T AFFECT COSTS THIS YEAR A DECIMATED CORN CROP THIS FALL COULD AFFECT COSTS NEXT YEAR OUR PEOPLE ARE CONCERNED ABOUT SUGAR PRICES SAID A SPOKESMAN FOR KELLOGG CO WHICH SELLS SEVERAL MAJOR PRESWEETENED CEREALS SUGAR BEETS AN ALTERNATIVE TO CORN SWEETENERS ARE SUFFERING BECAUSE OF UNUSUALLY COOL WET CONDITIONS IN THE UPPER MIDWEST ONE FACTOR THAT WILL INFLUENCE PRICES IN THE LONGER TERM IS THE SIZE OF THIS YEAR'S CARRYOVER INVENTORY MUCH OF WHAT IS BEING SOLD NOW IS BEING MADE FROM LAST SEASON'S COMMODITIES IF CROPS ARE BOUNTIFUL AND QUALITY GOOD THIS YEAR COMPANIES WILL SEEK TO STOCK UP BUT IF AS SEEMS LIKELY SUCH CROPS AS SOYBEANS AND CORN ARE SKIMPIER THAN NORMAL AND THEIR QUALITY IS DIMINISHED NEXT YEAR'S RETAIL PRICES COULD REFLECT THAT AN EARLY FROST IS THE KEY QUESTION SAYS JOHN MCMILLIN A FOOD ANALYST FOR PRUDENTIAL SECURITIES INC IN NEW YORK ALTHOUGH MOST ATTENTION IS ON CROP DESTRUCTION BY MIDWESTERN RIVERS OPPRESSIVE HEAT AND DROUGHT CONDITIONS IN PARTS OF THE US SOUTHEAST HAVE WITHERED CROPS AND SLOWED THE GROWTH OF POULTRY AND LIVESTOCK THE PASTURES HAVE LITERALLY BURNED UP FROM THE HEAT SAID ALABAMA AGRICULTURE DEPARTMENT SPOKESMAN PAUL HAMRICK THAT'S FORCING FARMERS TO FEED CATTLE FROM WINTER STORAGE OR NEWLY PURCHASED FEEDWHICH FLOODING ELSEWHERE HAS MADE MORE EXPENSIVE MOREOVER BECAUSE THE HEAT CURBS THEIR APPETITE CATTLE AND CHICKENS ARE EATING JUST ENOUGH TO SURVIVE AND ARE GAINING LITTLE WEIGHT MR HAMRICK SAID CORN CROPS IN ALABAMA AND GEORGIA ALSO HAVE BEEN LAID LOW IN GEORGIA SOME FARMERS ALREADY HAVE PLOWED UNDER SCORCHED FIELDS THAT WEREN'T GOING TO MAKE ANYTHING A STATE AGRICULTURAL SPOKESMAN SAID IN SOUTH CAROLINA OFFICIALS PRONOUNCED THE NONIRRIGATED CORN CROP A TOTAL LOSS OTHER HEATSTRESSED CROPS IN THE SOUTHEAST INCLUDE SOYBEANS FRUITS AND VEGETABLES COTTON AND TOBACCO OFFICIALS SAID ELEENA DE LISSER CONTRIBUTED TO THIS ARTICLE 9308060047 930806 BUSINESS BRIEF ONCOR INC WIDER LOSS OF 27 MILLION IS POSTED FOR SECOND QUARTER ONCOR INC REPORTED A WIDER SECONDQUARTER NET LOSS OF 27 MILLION OR 17 CENTS A SHARE COMPARED WITH A LOSS OF 18 MILLION OR 12 CENTS A SHARE IN THE 1992 QUARTER THE COMPANY BLAMED THE RESULTS PARTLY ON CHARGES FOR THE TERMINATION OF CERTAIN ROYALTY PAYMENTS SALES ROSE 44 TO 21 MILLION FROM 15 MILLION SHARES IN THE GATHERSBURG MD MAKER OF TEST SYSTEMS TO DETECT AND MANAGE CANCER FELL 25 CENTS OR 42 TO CLOSE AT 575 A SHARE IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY 9308060046 930806 ENTERTAINMENT SONY'S DIGITAL AUDIO FORMAT PULLS AHEAD OF PHILIPS'S BUT BOTH STILL HAVE FAR TO GO BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LAST FALL SONY CORP'S MINIDISC AND PHILIPS ELECTRONICS NV'S DIGITAL COMPACT CASSETTE HIT THE US MARKET BOTH VYING TO REPLACE TODAY'S STANDARD ANALOG AUDIOCASSETTE AND ULTIMATELY USHER IN THE NEXT GENERATION OF DEVICES FOR PLAYING AND RECORDING MUSIC SO FAR MINIDISC PLAYERS HAVE OUTSOLD DCC MACHINES BY AT LEAST TWO TO ONE IN THE US ACCORDING TO RETAILERS AND INDUSTRY SOURCES BUT NEITHER TECHNOLOGY IS TAKING THE WORLD BY STORM DISAPPOINTING RETAILERS WHO WERE HOPING TO BOOST LAGGING CONSUMER ELECTRONICS SALES THE MUSIC INDUSTRY MEANWHILE CONTINUES TO BE DIVIDED IN ITS SUPPORT FOR THE NEW FORMATS WITH NO SIGN OF A CONSENSUS SOON AS CRITICS HAD WARNED THE HARDWARE MAKERS ARE USING THEIR RECORD COMPANIES TO SUPPORT THEIR TECHNOLOGIES MAKING SOME MAJOR ARTISTS AVAILABLE IN ONE FORMAT ONLY SONY MUSIC PREDICTABLY PUT ITS ARTISTS ON MINIDISC BUT HAS NONE ON DCC POLYGRAM RECORDS 80OWNED BY PHILIPS AND MCA MUSIC OWNED BY MATSUSHITA ELECTRIC INDUSTRIAL CO WHICH CODEVELOPED THE DCC PLAYERS HAVE PUT AN ARRAY OF ARTISTS ON DCC AND NONE ON MINIDISC MUCH IS AT STAKE FOR BOTH CAMPS PHILIPS IS SAID TO HAVE SPENT AT LEAST 100 MILLION TO DEVELOP AND MARKET DCC BETTING THAT THE HISSFREE DIGITAL TAPE FORMAT WOULD BE THE NEXT WAVE IN PLAYBACK AND RECORDING TECHNOLOGY CODEVELOPER MATSUSHITA ADDED MUSCLE WITH ITS WELLKNOWN AUDIO AND VIDEO BRANDS TECHNICS AND PANASONIC THOUGH PHILIPS EXECUTIVES BELIEVE DCC WILL GET THE BOOST IT NEEDS FROM THE INTRODUCTION THIS FALL OF PORTABLE DCC MODELS SOME RETAILERS SAY THEY ARE RETURNING UNSOLD DCC EQUIPMENT OR REFUSING ADDITIONAL SHIPMENTS SONY MEANWHILE HAS MADE ITS BET ON A SMALL 25INCH OPTICAL DISK WHICH UNLIKE FULLSIZE COMPACT DISKS CAN RECORD MUSIC IS VIRTUALLY SKIPPROOF AND HAS THE QUICK RANDOM ACCESS THAT TAPES HAVE NEVER HAD A BIGGER NAME THAN PHILIPS IN THE US SONY HAS AN EXTENSIVE DEALER NETWORK AND A TOPRANKED RECORD SUBSIDIARY WITH HOT ARTISTS LIKE MARIAH CAREY AND MICHAEL JACKSON MINIDISC PLAYBACK/RECORD MODELS SELL FOR A SUGGESTED 750 SLIGHTLY LESS THAN PHILIPS'S DCC HOME DECK PRICED AT AROUND 800 THOUGH OVER TIME BOTH FORMATS ARE EXPECTED TO CUT PRICES TO INCREASE SALES THOUGH NEITHER SIDE RELEASES FIGURES INDUSTRY SOURCES PUT US SALES OF MINIDISC PLAYERS AT MORE THAN 40000 UNITS AND DCC PLAYER SALES AT NO MORE THAN 20000 BUT THE POTENTIAL MARKET IS HUGE TOTAL US SALES OF PORTABLE CD AND TAPE AUDIO PLAYERS WERE 846 MILLION LAST YEAR SALES OF PRERECORDED TAPE CASSETTES A MARKET THAT BOTH MINIDISC AND DCC ARE AIMING TO ONE DAY REPLACE WERE MORE THAN 3 BILLION SONY'S MODEST SUCCESS WITH PORTABLE VERSIONS OF MINIDISC IS PAVING THE WAY FOR NEW VERSIONS FOR THE HOME AND CAR FORD MOTOR CO INSIDERS SAY THE AUTO MAKER WILL INITIALLY BACK MINIDISC AS A DEALERINSTALLED OPTION IN A LIMITED NUMBER OF MODELS INTRODUCED ONLY WEEKS AFTER DCC RETAILERS SAY MINIDISC HAS SOLD MORE CONSISTENTLY SINCE CHRISTMAS AND IN GROWING NUMBERS IN RECENT MONTHS SONY HAS WON KUDOS FROM RETAILERS AND MUSIC EXECUTIVES ALIKE FOR UNDERSTATED YET EASYTOUNDERSTAND MARKETING AND PROMOTION AND FOR INTRODUCING MINIDISC FIRST IN PORTABLE FORM FOLLOWED THIS SUMMER BY MORE EXPENSIVE HOMEDECK MODELS SONY IS LEADING A NUMBER OF HARDWARE MAKERS IN A NEW NATIONWIDE PROMOTION TO DRAW A BROADER BASE OF MUSIC BUYERS TO MINIDISC STARTING THIS MONTH CONSUMERS WHO PURCHASE A MINIDISC PLAYER FROM SONY OR FROM OTHER HARDWARE MAKERS WHO HAVE LICENSED THE TECHNOLOGY SUCH AS AIWA RCA SANYO AND SHARP WILL RECEIVE A MINIDISC SAMPLER WITH MORE THAN 70 MINUTES OF MUSIC FROM VARIOUS LABELS THEY WILL ALSO GET A BOOKLET WITH 30 COUPONS EACH GOOD FOR 2 OFF THE PRICE OF ANY PRERECORDED MINIDISC TITLE REDEEMABLE AT MAJOR RECORD CHAINS SUCH AS TOWER RECORDS AND SOUND WAREHOUSE WE HAVE A NEW PRODUCT AND THE GENERAL POPULACE DOESN'T KNOW ABOUT IT SAYS BOB SHERWOOD VICE PRESIDENT OF SOUND TECHNOLOGY MARKETING FOR THE SONY SOFTWARE UNIT WE ARE SETTING OURSELVES UP FOR THE LONG RUN HERE PHILIPS MEANWHILE SAYS IT ISN'T WORRIED ABOUT THE DCC FORMAT'S SALES MAINTAINING THAT AS A YOUNG TECHNOLOGY DCC'S EARLY SALES ARE NO INDICATION OF THE FORMAT'S POTENTIAL PHILIPS NOTES THAT AUDIO CRITICS HAVE FOUND THAT DCC'S SOUND QUALITY IS VIRTUALLY INDISTINGUISHABLE FROM CDS AND SUPERIOR TO MINIDISCS THE NUMBER OF DCC UNITS SOLD DOESN'T REVEAL WHETHER THE SYSTEM IS A SUCCESS SAYS IRIS MERKER A PHILIPS SPOKESMAN THERE ARE MORE IMPORTANT FACTORS SUCH AS PUBLIC AWARENESS BUT SOME RETAILERS REMAIN UNIMPRESSED WE HAVEN'T SOLD A SINGLE DCC UNIT IN THE LAST TWO MONTHS SAYS TOM CAMPBELL OF DOW STEREO/VIDEO INC A CHAIN OF EIGHT SUPERSTORES IN SAN DIEGO AND ONE OF THE FIRST RETAILERS TO CARRY DCC THERE IS NO WAY WE ARE GOING TO ORDER MORE JEFF KAUFMAN A MACY'S VICE PRESIDENT WHO OVERSEES ELECTRONICS FOR EAST COAST STORES SAYS HE IS SELLING AS MANY AS 150 MINIDISC PLAYERS A MONTH DCC IS SELLING SUBSTANTIALLY LESS HE SAYS MR KAUFMAN BELIEVES THE DECIDING FACTOR HAS BEEN MINIDISC'S PORTABILITY MUSIC LABELS TOO ARE CONCERNED ABOUT DCC'S FAILURE TO SPARK A GROUNDSWELL OF INTEREST EVEN AMONG AFFLUENT CONSUMERS AND THEY ARE CRITICAL OF HOW PHILIPS HANDLED THE EARLY MARKETING AND PROMOTION PHILIPS'S TV ADS WHILE ARTFUL FAILED TO SHOW THE PRODUCT AND LEFT VIEWERS CONFUSED I'D BE LYING IF I SAID I WAS HAPPY WITH THE WAY THINGS WERE GOING SAYS CHRISTIAN JOERG VICE PRESIDENT OF NEW TECHNOLOGY FOR BERTELSMANN AG'S BERTELSMANN MUSIC GROUP WHICH SUPPORTS ONLY DCC EMI MUSIC GROUP WHOSE PARENT THORN EMI PLC HAS NO HARDWARE CONNECTION IS SUPPORTING BOTH FORMATS BUT WITH RESERVATIONS JIM FIFIELD PRESIDENT AND CHIEF EXECUTIVE OF EMI MUSIC SAYS MARKETING CAMPAIGNS FROM BOTH SONY AND PHILIPS CONFUSED CONSUMERS AND RAISED INDUSTRY EXPECTATIONS TOO HIGH BUT HE NOTES THAT PHILIPS PARTICULARLY FAILED TO MAKE CLEAR ONE OF DCC'S BEST FEATURES ITS BACKWARD COMPATIBILITY WHICH ALLOWS LISTENERS TO PLAY THEIR ANALOG TAPES AS WELL AS NEW DIGITAL VERSIONS PHILIPS SAID PUBLICLY THAT IT WAS SATISFIED WITH THE LAUNCH OF DCC BUT IN LATE JUNE IT NAMED A NEW EXECUTIVE TO OVERSEE DCC'S WORLDWIDE MARKETING IN A CONFIDENTIAL LETTER SENT TO US RECORD COMPANIES AND OTHER DCC SUPPORTERS HENK BODT CHAIRMAN AND CHIEF EXECUTIVE OF PHILIPS CONSUMER ELECTRONICS NAMED PHILIPS VETERAN PIET BOGELS CREDITED WITH HELPING INTRODUCE COMPACT DISKS IN THE 1980S AS THE NEW PROJECT COORDINATOR HIS APPOINTMENT MR BODT SAID CAME AFTER AN EXTENSIVE INTERNAL EVALUATION OF THE DCC PROJECT PHILIPS CONCLUDED THAT IN ORDER TO GET A MORE COHERENT AND COORDINATED EFFORT A TOP MANAGER IS NEEDED TO RUN THIS ACTIVITY FULL TIME MR BODT SAID THAT WHILE HE WAS PERSONALLY NOT DISSATISFIED WITH THE DCC LAUNCH THERE IS AMPLE ROOM FOR IMPROVEMENT THIS FALL PHILIPS AND MATSUSHITA'S PANASONIC BRAND WILL BEGIN SELLING PORTABLE PLAYERS WHICH RESEMBLE WALKMAN CASSETTE PLAYERS AT 549 PUTTING THEM ON A PAR WITH SOME OF SONY'S PORTABLE MINIDISC PLAYERS CAR DCC UNITS FROM PANASONIC AND PHILIPS WILL ALSO BE AVAILABLE HOPING TO ERASE THE CONFUSION OF ITS FIRST DCC TV AD BOTH PHILIPS AND MATSUSHITA ARE PLANNING NEW AND SEPARATE CAMPAIGNS TARGETING US CONSUMERS PHILIPS EXECUTIVES IN THE US PROMISE A MORE DIRECT CAMPAIGN AND ARE EXPECTED TO USE NATIONAL MAGAZINES AND COUPONS THAT SHOPPERS CAN REDEEM FOR DCC SOFTWARE MATSUSHITA'S PANASONIC AND TECHNICS WILL PROMOTE A RANGE OF DCC PLAYERSHOME PORTABLE AND CARIN RADIO AND MAGAZINE ADS OUR ADVERTISING IS VERY CLEAR IT DIRECTLY ADDRESSES THE ADVANTAGES OF DCC TO THE CONSUMER SAYS BOB GREENBERG A VICE PRESIDENT FOR PANASONIC AND TECHNICS THERE WILL BE NO CONFUSION THAT'S FOR SURE TWO NEW AUDIO FORMATS ARE BATTLING TO REPLACE THE STANDARD CASSETTE TAPE SONY IS AHEAD SO FAR HERE S A COMPARISON 9308060045 930806 BUSINESS BRIEF FUJITSU LTD OUTPUT IN THAILAND TO GROW PROMPTED BY A STRONGER YEN JAPAN'S FUJITSU LTD SAID THAT DUE TO THE STRENGTH OF THE YEN IT WILL BOOST PRODUCTION IN THAILAND OF COMPUTER PRINTERS AND HARDDISK DATASTORAGE UNITS THE STRONGER YEN MAKES PRODUCTION OUTSIDE JAPAN MORE COSTEFFECTIVE THE COMPANY SAID THE PRODUCTS WILL BE EXPORTED TO JAPAN EUROPE AND THE US THE COMPUTER MAKER WILL RAISE OUTPUT AT ITS FUJITSU THAILAND CO PLANT OUTSIDE BANGKOK TO 10000 PRINTERS A MONTH STARTING IN SEPTEMBER IN JANUARY 1994 THE COMPANY WILL BOOST PRODUCTION OF 35INCH HARDDISK DRIVES TO 70000 UNITS A MONTH CURRENTLY THE THAI FACTORY MAKES LESS THAN 1000 UNITS A MONTH OF EACH PRODUCT FUJITSU WILL INVEST ONE BILLION YEN 95 MILLION TO EXPAND ITS THAI OPERATION AND WILL HIRE AN ADDITIONAL 830 EMPLOYEES A COMPANY SPOKESMAN SAID ADDING THAT LABOR COSTS IN THAILAND ARE ROUGHLY 6 OF WHAT THEY ARE IN JAPAN NO PRODUCTION CUTBACKS IN JAPAN ARE EXPECTED THE SPOKESMAN SAID 9308060044 930806 TECHNOLOGY & HEALTH HOPE OFFERED FOR KEY SUPPLY OF EPOXY RESIN BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL SUMITOMO CHEMICAL CO SAID IT WANTS TO RESTART PRODUCTION OF A CRITICAL EPOXY RESIN USED IN COMPUTER MEMORY CHIPS BY JANUARY ALTHOUGH IT SAID THAT DATE REPRESENTED HOPEFUL THINKING AND NOT A PROMISE SUMITOMO'S EPOXY RESIN PLANT IN NIIHAMA JAPAN WAS DESTROYED IN AN EXPLOSION JULY 4 THE PLANT SUPPLIED ROUGHLY 65 OF THE MARKET FOR EPOXY RESIN USED IN THE PLASTIC PACKAGING FOR MOST SEMICONDUCTORS SINCE THE PLANT WAS DESTROYED MEMORYCHIP PRICES ON THE SPOT MARKET HAVE CLIMBED SHARPLY ON FEARS NO REPLACEMENT SUPPLY COULD BE FOUND YESTERDAY THE LOCAL POLICE AND FIRE DEPARTMENTS COMPLETED THEIR INVESTIGATION INTO THE CAUSE OF THE EXPLOSION WHICH KILLED ONE WORKER AND INJURED THREE OTHERS SUMITOMO SAID THAT INVESTIGATION HAS PREVENTED SUMITOMO FROM CARRYING OUT ANYTHING BUT A SUPERFICIAL DAMAGE ASSESSMENT ON ITS OWN WE WOULD LIKE TO PROCEED WITH PLANS TO RESTART THE FACTORY SAID A SPOKESMAN HE ADDED HOWEVER THAT ASSESSING THE DAMAGE AND OBTAINING APPROVAL FROM LOCAL RESIDENTS AND AUTHORITIES WOULD TAKE TIME IN THE MEANTIME SUMITOMO HAS INKED SUPPLY AGREEMENTS WITH NIPPON KAYAKU CO AND DAINIPPON INK & CHEMICALS INC OF JAPAN AND CHANG CHUNG PLASTICS IN TAIWAN TO BOOST PRODUCTION OF THE HIGHGRADE EPOXY RESIN SUMITOMO'S PLANT ONCE PRODUCED TOGETHER THOSE THREE COMPANIES CAN MAKE UP 50 TO 60 OF SUMITOMO'S FORMER PRODUCTION SUMITOMO SAID MEANWHILE DOW CHEMICAL CO WHICH IN 1991 MOTHBALLED A TEXAS FACTORY THAT PRODUCED THE EPOXY RESIN APPARENTLY WILL NOT RESTART ITS PRODUCTION TO AID SUMITOMO NO OTHER US FACILITY MAKES THIS TYPE OF RESIN DOW CHEMICAL EARLIER SAID IT WAS SEEKING A FIVEYEAR CONTRACT FROM SUMITOMO TO BUY ITS EPOXY RESIN OUTPUT AS A CONDITION FOR RESTARTING ITS FACTORY WITHOUT REFERRING SPECIFICALLY TO THAT REQUEST THE SUMITOMO SPOKESMAN SAID WE COULDN'T MAKE A COMPROMISE BASED ON THE TERMS OFFERED HE ADDED HOWEVER THAT IF ITS FACTORY'S REOPENING IS DELAYED DOW IS ONE OF THE CHOICES WE HAVE MEMBERS OF A 10PERSON US ELECTRONICS INDUSTRY DELEGATION THAT VISITED JAPAN EARLIER THIS WEEK WERE GENERALLY REASSURED BY SUMITOMO'S FORECAST THE PLANS THEY HAVE ARE ENCOURAGING SAID GEORGE SCALISE A SENIOR VICE PRESIDENT AT NATIONAL SEMICONDUCTOR CORP IF OTHER SUPPLIERS CAN INCREASE PRODUCTION AS PLANNED AND CHANG CHUNG COMES ON STREAM AS PLANNED THEN I'M CONFIDENT WE'LL HAVE A SUFFICIENT EPOXY RESIN SUPPLY UNTIL SUMITOMO'S PLANT CAN REOPEN MR SCALISE SAID US COMPUTER MAKERS ALSO RAISED CONCERNS OVER HOW AVAILABLE EPOXYRESIN SUPPLIES WOULD BE DISTRIBUTED AMONG US AND JAPANESE COMPUTER COMPANIES OUR CONCERN WAS THERE MIGHT BE SOME FAVORITISM SHOWN IN ALLOCATING THOSE SUPPLIES AND WE DIDN'T WANT TO SEE AMERICAN COMPANIES DISADVANTAGED MR SCALISE SAID OFFICIALS OF JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY TOLD THE GROUP IT COULDN'T REGULATE HOW THE REMAINING EPOXY RESIN WOULD BE DISTRIBUTED MR SCALISE SAID 9308060043 930806 SCHERING SAYS PROFIT ROSE 34 IN 1ST HALF UPGRADES 93 OUTLOOK SPECIAL TO THE WALL STREET JOURNAL BERLIN GERMAN PHARMACEUTICAL AND AGROCHEMICAL GROUP SCHERING AG REPORTED A 34 RISE IN NET INCOME IN THE FIRST HALF AND SAID IT EXPECTED ITS FULLYEAR PROFIT TO MATCH THAT OF 1992 THE FORECAST WAS MORE OPTIMISTIC THAN PREVIOUS STATEMENTS THAT MATCHING 1992 EARNINGS WOULD BE DIFFICULT FOR THE HALF SCHERING SAID NET TOTALED 185 MILLION MARKS 1082 MILLION UP FROM 179 MILLION MARKS SALES SLIPPED 17 TO 282 BILLION MARKS FROM 287 BILLION MARKS WITH A BIGGER DECLINE IN AGROCHEMICALS THAN THE PHARMACEUTICAL DIVISION THE SALES DECLINE IS ADJUSTED TO EXCLUDE REVENUE OF OPERATIONS THAT HAVE BEEN SHED DURING THE PAST YEAR UNADJUSTED SALES FELL 18 IN THE PERIOD FROM 345 BILLION MARKS A YEAR EARLIER A FURTHER ADJUSTMENT TO FACTOR OUT FOREIGN EXCHANGE LOSSES PRODUCES A SALES INCREASE OF 1 IN THE FIRST HALF OVER A YEAR EARLIER DOMESTIC PHARMACEUTICAL SALES CONTINUED TO BE DEPRESSED BY THE GOVERNMENT'S HEALTHCARE REFORM MEASURES WHILE GROWTH WAS SEEN IN MOST FOREIGN MARKETS SCHERING SAID THE US INTRODUCTION OF ITS BETAPACE HEART DRUG HAD CONTRIBUTED SUBSTANTIALLY TO GROWTH IN AGROCHEMICALS SALES RECOVERED CONSIDERABLY FROM THE 22 DECLINE REGISTERED IN THE FIRST QUARTER AGROCHEMICAL SALES WERE HIT HARD AT THE START OF THE YEAR BY THE ABOLITION OF PRICE DISCOUNTING FOR CUSTOMERS BRINGING THEIR PURCHASES FORWARD FROM THE SECONDQUARTER PLANTING SEASON 9308060042 930806 MARKETING & MEDIA NBC HAS DISCUSSIONS CONCERNING BUYING UK'S SUPERCHANNEL NEW YORK NBC IS IN EXPLORATORY TALKS TO BUY SUPERCHANNEL A SATELLITE TELEVISION CHANNEL BASED IN LONDON THE PURCHASE WOULD MARK A SIGNIFICANT MOVE FOR NBC A UNIT OF GENERAL ELECTRIC CO INTO THE EUROPEAN NEWS MARKETPLACE THE SIXYEAROLD SUPERCHANNEL BROADCASTS NEWS AND ENTERTAINMENT PROGRAMMING 24 HOURS A DAY IN ENGLISH AND GERMAN TO SEVERAL COUNTRIES AMONG ITS OFFERINGS IS NBC'S CNBC BUSINESS PROGRAMMING SEEN ON CABLE IN THE US NBC INVESTED AGGRESSIVELY IN FOREIGN TV OPERATIONS IN THE LATE 1980S BUT SUBSEQUENTLY SOLD OFF ITS INVESTMENTS ONLY LAST YEAR NBC SOLD OFF ITS 375 STAKE IN VISNEWS LTD A LONDON INTERNATIONAL NEWS AGENCY NOW OWNED BY REUTERS HOLDINGS PLC RECENTLY THOUGH NBC HAS AGAIN STARTED TO MOVE INTO FOREIGN PROGRAMMING WITH THE LAUNCH OF A SPANISHLANGUAGE NEWS CHANNEL FOR LATIN AMERICA SUPERCHANNEL HAS BEEN LOOKING FOR FINANCIAL PARTNERS FOR SOME TIME IT IS OWNED BY GRUPPO MARCUCCI COMUNICAZIONE WITH 57 HELD BY A SUBSIDIARY OF THE FRENCH BANK CREDIT LYONNAIS SA A SPOKESWOMAN FOR NBC DECLINED TO COMMENT ON THE TALKS SAYING ONLY THAT WE ARE ALWAYS INTERESTED IN EXPLORING SOLID BUSINESS OPPORTUNITIES A CREDIT LYONNAIS SPOKESWOMAN ALSO DECLINED COMMENT 9308060041 930806 GM'S SUPPLIERS' HOPE FOR BETTER TIMES RESTS ON SPEECH BY LOPEZ'S SUCCESSOR BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL TRAVERSE CITY MICH THE BUSINESS SECTOR THAT HAS BORNE THE BRUNT OF GENERAL MOTORS CORP'S MASSIVE COSTCUTTING THE HUGE AUTOPARTS SUPPLY INDUSTRY WILL BE HANGING WITH HOPE ON THE WORDS OF ONE MAN TODAY HE IS G RICHARD WAGONER JR THE EXECUTIVE VICE PRESIDENT IN CHARGE OF GM'S 30 BILLION TO 35 BILLION IN ANNUAL SPENDING ON AUTO PARTS HE IS TO DELIVER ONE OF THE MOST ANXIOUSLY AWAITED SPEECHES OF THIS YEAR'S AUTOINDUSTRY CONFERENCE SPONSORED BY THE UNIVERSITY OF MICHIGAN THE SUPPLIERS ARE HOPING FOR A CHANGE OF TONE FROM THE ONE SET A YEAR AGO BY MR WAGONER'S PREDECESSOR J IGNACIO LOPEZ DE ARRIORTUA WHO HAS SINCE SWITCHED TO VOLKSWAGEN AG THERE ARE A LOT OF OPEN WOUNDS HERE SAYS MICHAEL HASSLER GENERAL MANAGER OF PETERSON SPRINGS OF THREE RIVERS MICH WHICH SUPPLIES ENGINE AND OTHER PARTS THE LAST THING PEOPLE WOULD WANT TO SEE IS A LOT OF SALT RUBBED INTO THEM MANY OF MR HASSLER'S SUPPLYINDUSTRY COLLEAGUES ARE STILL MUTINOUS OVER THE AGGRESSIVE COSTCUTTING POLICIES INSTALLED BY MR LOPEZ SUPPLIERS COMPLAIN THAT UNDER HIS ADMINISTRATION GM PURCHASING OFFICIALS TORE UP CONTRACTS ASKED FOR DOUBLEDIGIT PRICE CUTS AND SHOPPED THEIR IDEAS AMONG COMPETITORS WHO WERE ASKED FOR LOWER BIDS SUPPLIERS SAY THEY PROVIDED BILLIONS OF DOLLARS IN COST SAVINGS FOR GM WITH LITTLE OR NOTHING IN RETURN AT A TIME WHEN THEY ALSO ARE BEING ASKED TO PLAY A BIGGER ENGINEERING ROLE GM ISN'T DISCLOSING WHAT MR WAGONER WILL SAY BUT IN A NEWS CONFERENCE LAST WEEK MR WAGONER INDICATED THAT HE DOESN'T EXPECT TO ENUNCIATE A BIG CHANGE IN DIRECTION THE GM WORLDWIDE PURCHASING POLICY IS BASICALLY IN PLACE HE SAID HE ADDED THAT WHILE WE WANT TO HAVE A GOOD RELATIONSHIP WITH OUR SUPPLIERS WE HAVE TO BE APPROPRIATELY DEMANDING IF THAT IS THE ONLY MESSAGE MR WAGONER HAS FOR THE SUPPLIERS IT WILL BE LESS THAN WELCOME IN A RECENT SURVEY OF THE SUPPLIER INDUSTRY BY ELM INTERNATIONAL A RESEARCH CONCERN IN OKEMOS MICH GM RANKED DEAD LAST ON SUPPLIER RELATIONS AMONG THE 12 CAR MAKERS THAT HAVE FACTORIES IN THE US IT WOULD BE A MAJOR DISAPPOINTMENT IF HE DIDN'T DELIVER SOME MESSAGE THAT WAS MEANINGFUL TO SUPPLIERS SAYS RON CUTLER VICE PRESIDENT OF MARKETING FOR TRW INC ONE OF 25 SUPPLIERS WITH WHICH MR WAGONER MET PRIOR TO HIS ARRIVAL HERE SUPPLIERS SAY THEY ARE TELLING GM THEY WANT MORE OF A PARTNERSHIP RELATIONSHIP SUCH AS THEY ARE BEGINNING TO HAVE WITH CHRYSLER CORP AND FORD MOTOR CO THE SUPPLIERS SAY GM MUST RECOGNIZE THEIR NEED TO MAKE A PROFIT SOMETHING THAT THEY SAY MR LOPEZ DIDN'T DO AT THE VERY LEAST THE SUPPLIERS SAY THEY WANT MR WAGONER TO MAKE SOME EFFORT TO CLEAR UP THE ILL FEELINGS THAT LINGER NEARLY FIVE MONTHS AFTER MR LOPEZ'S DEPARTURE SUPPLIER RELATIONS ARE GROWING INCREASINGLY CRUCIAL FOR GM AND OTHER AUTO MAKERS AS THE INDUSTRY GROWS LEANER AND RELIES ON SUPPLIERS TO PLAY A GREATER ROLE IN HELPING TO DEVELOP NEW PRODUCTS IN THE OLD DAYS SUPPLIERS WERE EXPECTED SIMPLY TO FOLLOW BLUEPRINTS PROVIDED BY THE MANUFACTURERS SOME SUPPLIERS POINT TO CHRYSLER'S VICE PRESIDENT FOR PROCUREMENT AND SUPPLY THOMAS J STALLKAMP AS HAVING DONE A MODEL JOB OF REINVENTING THE MANUFACTURERSUPPLIER RELATIONSHIP IN REMARKS TO THE CONFERENCE YESTERDAY MR STALLKAMP POKED FUN AT MR LOPEZ'S CONTROVERSIAL WARRIOR DIET A REGIMEN THAT ESCHEWED FATS AND MEATS I DON'T KNOW ABOUT YOU MR STALLKAMP SAID BUT I'M DAMN GLAD I NEVER FOLLOWED THAT DIET OR A LOT OF OTHER SOCALLED NEW IDEAS THAT WERE FROM ITS FAMOUS AUTHOR 9308060040 930806 IMPORTED VEHICLE SALES IN JAPAN ROSE IN JULY SIXTH GAIN IN A ROW SPECIAL TO THE WALL STREET JOURNAL TOKYO SALES OF IMPORTED CARS TRUCKS AND BUSES IN JAPAN ROSE 11 IN JULY FROM A YEAR EARLIER TO 20364 UNITS FOR THE SIXTH CONSECUTIVE MONTH OF YEARONYEAR INCREASE REPORTED THE JAPAN AUTOMOBILE IMPORTERS IN JULY VEHICLES BUILT AT JAPANESE MAKERS' OVERSEAS PLANTS ACCOUNTED FOR 19 OR 3915 UNITS OF SALES OF IMPORTED VEHICLES THAT WAS A 37 INCREASE FROM THE YEAREARLIER LEVEL IN LINE WITH THE RECENT TREND FOR GROWTH IN THESE REVERSE IMPORTS THAT ARE PROVIDING SUPPORT TO OVERALL DOMESTIC SALES BUT IMPORTED VEHICLES ARE PERFORMING WELL DESPITE THE SLUMP IN THE DOMESTIC CAR MARKET WHICH SAW A 10 DROP IN SALES IN JULY AN ASSOCIATION SPOKESMAN SAID PRICE REDUCTIONS BY FOREIGN MAKERS SUCH AS ROVER GROUP PLC AND FORD MOTOR CO MADE THEIR VEHICLES COMPETITIVE AGAINST JAPANESE COUNTERPARTS CHRYSLER CORP POSTED THE SHARPEST GROWTH AMONG FOREIGN MAKERS IN JULY AS IT CONTINUED TO EXPAND SALES OF ITS CHEROKEE MODELS EQUIPPED WITH A RIGHTSIDE STEERING WHEEL MERCEDESBENZ WHOSE SALES HAVE SLUMPED OVER THE PAST YEAR SHOWED IMPROVEMENT IN JULY AS A RESULT OF A SPECIAL OFFER OF LOWINTEREST LOANS FOR ITS CARS 9308060039 930806 DOING THE DEAL THE DEFICITREDUCTION CONFERENCE WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER CLINTON MUST COURT REPUBLICANS ON KEY ISSUES BEYOND THE BUDGET BILL WITH STRONG PROTECTIONIST SENTIMENT AMONG DEMOCRATS HE CAN'T WIN THE FREETRADE PACT WITHOUT GOP SUPPORT HEALTHCARE OVERHAUL ALSO WILL REQUIRE A BIPARTISAN APPROACH SOME REPUBLICANS ARE EAGER TO PROVE THEY AREN'T OBSTRUCTIONISTS BUT CLINTON MUST SHOW MORE ACUMEN TO REACH THEM NEW YORK REP BOEHLERT A MODERATE REPUBLICAN WHO AT TIMES HAS BACKED CLINTON SAYS HE IS AMAZED AT THE LACK OF CONTACT FROM THE WHITE HOUSE CLINTON AIDES BEGIN REGULAR STRATEGY SESSIONS WITH GOP LAWMAKERS WHO FAVOR THE TRADE PACT REPUBLICANS WILL BE INVITED TO HIGHPROFILE EVENTS SUCH AS CLINTON'S VISIT WITH THE POPE CLINTON CONTINUES TO CONSULT WITH NIXON ON FOREIGN POLICY NEXT WEEKEND HE WILL VISIT AND GOLF WITH GERALD FORD IN VAIL COLO TEMPORARY TAX PROVISIONS KEEP LOBBYING AND CAMPAIGN DONATIONS ALIVE THE RESEARCH TAX CREDIT WHICH HAD BIG MONEY BEHIND IT WOULD BE EXTENDED THROUGH JUNE 1995 THE 26 CORPORATE MEMBERS OF THE COUNCIL ON RESEARCH AND TECHNOLOGY GAVE MORE THAN 23 MILLION IN DIRECT CAMPAIGN DONATIONS LAST ELECTION ACCORDING TO AN ANALYSIS BY THE CENTER FOR RESPONSIVE POLITICS AMONG THE BIGGEST GIVERS ELI LILLY SOUTHWESTERN BELL AND PFIZER FOUR OTHER PROVISIONS INCLUDING A TARGETED JOBS TAX BREAK FOR HIRING THE DISADVANTAGED WOULD BE KEPT ALIVE ONLY THROUGH 1994 LOBBYISTS DELIGHT AT THE ENDLESS CRISES OF EXPIRING PROVISIONS THEY PAY THE MORTGAGE SAYS CALIFORNIA REP STARK THAT'S CYNICAL AND INSULTING RETORTS WILLIAM SIGNER A LOBBYIST FOR THE JOBS TAX CREDIT POLITICAL LOSERS OUTNUMBER WINNERS IN THE MESSY BUDGET DEBATE REPUBLICANS LOOK TERRIBLE ROSS PEROT LOOKS WORSE THE PRESIDENT LOOKS PHENOMENALLY WEAK SAYS POLITICAL ANALYST CHARLES COOK OKLAHOMA SEN BOREN MAKES ENEMIES IN WASHINGTON FOR CUTTING OUT ON CLINTON BUT PROBABLY SCORES AT HOME REP GIBBONS THE NO 2 MAN ON THE WAYS AND MEANS PANEL UPSETS COLLEAGUES WITH COMMENTS THAT HE IS READY TO TAKE THE TOP POST IF REP ROSTENKOWSKI IS INDICTED AMONG THE WINNERS BLACK CAUCUS HEAD REP MFUME AND NEW YORK REP RANGEL WHO GOT KEY DEMANDS SUCH AS EARNED INCOME TAX CREDITS FOR THE WORKING POOR IN THE FINAL BILL HOUSE MAJORITY LEADER GEPHARDT ALSO LOOKS PRETTY GOOD BY KEEPING HOUSE DEMOCRATS IN LINE SAYS GOP POLITICAL ANALYST DOUG BAILEY ANOTHER POSSIBLE WINNER THE CONGRESSIONAL TERMLIMIT MOVEMENT WHICH IS WORKING TOWARD BALLOT INITIATIVES IN EIGHT STATES IN 1994 LEFTOVERS UNABLE TO GET A NANNY TAX REVISION NOW SEN MOYNIHAN PROMISES TO TRY AGAIN TO RAISE THE WAGE THRESHOLD FOR PAYING SOCIAL SECURITY TAXES FOR DOMESTIC WORKERS FROM THE CURRENT 50 A QUARTER ALSO PENDING ARE TAX SIMPLIFICATION PROPOSALS FIRE AND BRIMSTONE THE CHRISTIAN COALITION SPENT MORE THAN 150000 ON RADIO ADS PHONE BANKS MAILINGS AND OTHER ACTIONS TO FIGHT THE BUDGET BILL AS ANTIFAMILY SAYS COALITION DIRECTOR RALPH REED AMONG 14 TARGETED HOUSE MEMBERS IN 11 STATES TEXAS REP STENHOLM DESERTED THE WHITE HOUSE THIS WEEK FUEL FIGHT THE METHANOL INDUSTRY FAILED TO GET A LOWER FUELTAX RATE FOR BOTH METHANOL AND ETHANOL IN THE BUDGET BILL PARTLY BECAUSE ETHANOL ADVOCATE SEN DASCHLE WOULDN'T BACK IT ETHANOL CHAMPION SEN DOLE ALSO SAT OUT THE DEBATE JEOPARDY A SOLICITATION FOR A VIRGINIA POLITICAL FUNDRAISER LAST WEEKEND FEATURING FORMER FEDERAL PROSECUTOR JAY STEPHENS SUGGESTED THAT IF ASKED HE WILL TAKE YOU INTO HIS INVESTIGATION OF REP ROSTENKOWSKI STEPHENS WHOSE PUBLIC COMMENTS HAVE BEEN CRITICIZED AS UNETHICAL BY LEGAL EXPERTS REFUSED TO RETURN CALLS BUDGETBILL FALLOUT RAISES CONCERNS ABOUT THE NEXT BIG BATTLE HEALTH CARE MANY DOCTOR AND HOSPITAL GROUPS THAT ACCEPTED CLINTON'S PROPOSED 50BILLION MEDICARE CUTBACKS FEEL BURNED BY HIS WILLINGNESS TO AGREE TO EVEN MORE REDUCTIONS WHEN THE GOING GOT TOUGH WHAT WE SAW IS THAT WHEN YOU GET INTO A FIGHT YOU CAN GET THROWN OVERBOARD BY SOME OTHER INTEREST SAYS DICK DAVIDSON THE AMERICAN HOSPITAL ASSOCIATION'S PRESIDENT ADMINISTRATION OFFICIALS EYE SEPT 21 AS A POSSIBLE LAUNCH DATE FOR THE HEALTHOVERHAUL PROPOSAL CLINTON PLANS TO SET THE STAGE FOR A BIG HEALTHCARE PUSH IN A MIDAUGUST SPEECH TO A GOVERNORS FORUM IN TULSA OKLA THE KEY REMAINING DECISION HOW TO PAY FOR THE PLAN CLINTON MAY FIND THAT THE BUDGET DEBATE HAS ONLY HEIGHTENED ANTITAX SENTIMENT MINOR MEMOS SOME REPUBLICANS SUGGESTED MISSOURI'S DANFORTH INSTEAD OF DOLE TO GIVE THE GOP'S TELEVISED ATTACK ON CLINTON'S ECONOMIC PLAN BUT HAD SECOND THOUGHTS ABOUT THE MULTIMILLIONAIRE SENATOR BASHING A BILL THAT RAISES TAXES ON THE RICH FORMER BUSH ECONOMIC ADVISER MICHAEL BOSKIN WRITES THAT CLINTON DESERVES THE DIZZIE DEAN AWARD FOR ILLITERATE BUDGET REMARKS IS THERE A DIZZY DEAN AWARD FOR ILLITERATE SPORTS METAPHORS 9308060038 930806 ARTHUR ANDERSEN PAYS 65 MILLION TO RTC AGENCY PAYMENT SETTLES 1992 SUIT THAT QUESTIONED LAPSES IN THRIFT ACCOUNTING BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ARTHUR ANDERSEN & CO THE WORLD'S LARGEST ACCOUNTING FIRM HAS PAID THE RESOLUTION TRUST CORP 65 MILLION TO SETTLE GOVERNMENT CHARGES OF PROFESSIONAL NEGLIGENCE ACCORDING TO AGENCY DOCUMENTS ON TOP OF THE 65 MILLION THE CHICAGOBASED FIRM PAID THE GOVERNMENT ON AUG 3 ANDERSEN WILL PAY 14 MILLION PLUS INTEREST BY OCT 1 TO CLOSE THE BOOKS ON A 1991 SETTLEMENT IT REACHED WITH THE RTC OVER CHARGES OF ACCOUNTING LAPSES IN CONNECTION WITH AUDITS OF LINCOLN SAVINGS & LOAN ASSOCIATION THE COLLAPSED CALIFORNIA THRIFT THAT CHARLES KEATING HAS BEEN CONVICTED OF DEFRAUDING ARTHUR ANDERSEN ALREADY HAD PAID 3 MILLION TO SETTLE THE LINCOLN CHARGES THE LATEST PAYMENTS WEREN'T PUBLICLY ANNOUNCED BUT AN RTC OFFICIAL PROVIDED COPIES OF THE SETTLEMENT PAPERS IN RESPONSE TO A REQUEST FROM THE WALL STREET JOURNAL THE 65 MILLION PAYMENT SETTLES A 400 MILLION LAWSUIT THAT THE RTC BROUGHT AGAINST ANDERSEN LAST YEAR IN CONNECTION WITH THE FAILURE OF HOUSTON'S BENJAMIN FRANKLIN SAVINGS ASSOCIATION AND ALL OTHER POSSIBLE GOVERNMENT CHARGES AGAINST THE FIRM FOR ITS WORK ON FAILED THRIFTS PRIOR TO APRIL 13 1993 THE FIRM ACCEPTED THE SOCALLED GLOBAL SETTLEMENT WITHOUT ADMITTING THE GOVERNMENT'S CHARGES IN A STATEMENT ARTHUR ANDERSEN SAID THE RTC SETTLEMENT IS THE RESULT OF A BUSINESS DECISION TO RESOLVE ALL THREATENED AND ACTUAL CLAIMS IN WHICH THE RTC WAS SEEKING CLAIMS IN THE HUNDREDS OF MILLIONS OF DOLLARS IT SAID THE SETTLEMENT WILL BE LARGELY COVERED BY INSURANCE AND WON'T HAVE A MATERIAL FINANCIAL IMPACT ON THE COMPANY THE SETTLEMENT SPECIFICALLY MENTIONED FRANKLIN UNIVERSITY SAVINGS ASSOCIATION ALSO IN HOUSTON RESOURCE SAVINGS ASSOCIATION IN DENISON TEXAS AND HOME FED BANK IN SAN DIEGO AS PART OF THE SETTLEMENT THE RTC WILL LIFT A CONTRACTING BAN IT IMPOSED ON ARTHUR ANDERSEN IN 1992 THIS WILL AGAIN ALLOW THE FIRM TO BID ON CONTRACTS THE RTC ISSUES IN ITS EFFORTS TO SORT OUT THE ASSETS OF FAILED THRIFTS ALSO THE FIRM AGREED TO COOPERATE IN PURSUING CLAIMS AGAINST OTHERS THE GOVERNMENT SAYS WERE RESPONSIBLE FOR THRIFT FAILURES THAT COST THE GOVERNMENT MONEY THE FAILURE OF BENJAMIN FRANKLIN ALONE COST THE GOVERNMENT NEARLY 1 BILLION THE GOVERNMENT HAS BEEN SEEKING GLOBAL SETTLEMENTS FROM ACCOUNTING AND LAW FIRMS THAT IT CHARGES CONTRIBUTED TO THE COLLAPSE OF THRIFTS BY FAILING TO HIGHLIGHT SLOPPY OR ILLEGAL PRACTICES LAST YEAR ERNST & YOUNG AGREED TO PAY 400 MILLION TO SETTLE FEDERAL CHARGES THAT IT INADEQUATELY AUDITED FOUR LARGE THRIFTS THAT FAILED AT A COST TO THE GOVERNMENT OF 66 BILLION SEPARATELY ANDERSEN SIGNED A SETTLEMENT WITH THE OFFICE OF THRIFT SUPERVISION AGREEING TO CERTAIN TRAINING AND REPORTING REQUIREMENTS IN CONNECTION WITH ITS WORK ON THRIFTS 9308060037 930806 WHO'S NEWS GOODY'S FAMILY CLOTHING INC GOODY'S FAMILY CLOTHING INC KNOXVILLE TENN HARRY M CALL 48 YEARS OLD RESIGNED AS EXECUTIVE VICE PRESIDENT AND DIRECTOR OF THIS CLOTHING RETAILER MR CALL'S SEAT ON THE BOARD HASN'T BEEN FILLED AND HIS POSITION WON'T BE FILLED THE COMPANY SAID MR CALL DIDN'T RETURN CALLS SEEKING COMMENT 9308060036 930806 MARKETING & MEDIA ADVERTISING ADVERTISERS TO STROLL MEMORY LANE VIA CABLE TV'S SITCOM STREAM BY KEVIN GOLDMAN NICK AT NITE CABLE'S NIGHTLY STREAM OF VINTAGE TV SITCOMS FROM DECADES PAST HAS BEEN WOOING ADVERTISERS TO DUST OFF THEIR ANCIENT CAMPAIGNS AND AIR THE CLASSICS IN PLACE OF THEIR REGULAR '90S SPOTS BUT THE EFFORT TO REKINDLE MEMORIES OF NOSTALGIC BABY BOOMERS IS CAUSING MAJOR PAINS THAT EVEN OLD SPEEDY STAR OF THE ALKASELTZER COMMERCIALS CIRCA 1952 CAN'T CURE THE NICKELODEON CHANNEL'S NICK AT NITE LINEUP AIRS SUCH STAPLES AS THE DICK VAN DYKE SHOW DOBIE GILLIS AND THE DONNA REED SHOW FROM 8 PM TO 530 AM IT HAS TRIED TO RAID THE ARCHIVES FOR COMMERCIAL TREASURES SUCH AS THE HERTZ SPOT SHOWING THE BUSINESSMAN GLIDING FROM THE SKY INTO A HERTZ CAR LET HERTZ PUT YOU IN THE DRIVER'S SEAT BUT THE REASONS WHY A SEEMINGLY PERFECT IDEA HAS HAD ONLY LIMITED SUCCESS ILLUSTRATE SOME FACTS ABOUT THE EVOLUTION OF THE ADVERTISING INDUSTRY MANY SPONSORS HAVE CHANGED AD AGENCIES OVER THE YEARS AND THE SHOPS ARE LOATH TO PUT ANY COMMERCIAL ON THE AIR THAT WOULD RESURRECT A BELOVED CAMPAIGN CREATED BY A PREDECESSOR FURTHERMORE SO MANY AGENCIES HAVE SPLINTERED MERGED OR GONE DEFUNCT THAT IT'S DIFFICULT TO TRACK DOWN THOSE INVOLVED TO OBTAIN THEIR PERMISSION TO RERUN SPOTS AND MYRIAD ADVERTISERS HAVE CHANGED THEIR IMAGE AND MARKET POSITIONS AND ARE THUS RELUCTANT TO RETURN TO THE PAST STILL A FEW ADVERTISERS HAVE MANAGED TO UNEARTH THEIR OLD REELS AND SINCE 1989 HAVE EAGERLY PUT OLD ADS ON NICK AT NITE ALTHOUGH NONE ARE CURRENTLY RUNNING THE CABLE OUTLET IS ACTIVELY ATTEMPTING TO REVIVE THE GIMMICK AND ITS EXECUTIVES ARE OPTIMISTIC ESPECIALLY SINCE THE NOSTALGIA CRAZE CONTINUES TO BOOM AND NICK'S RATINGS INCREASED FROM LAST YEAR IN THE PAST SOME ADVERTISING INCLUDED SPOTS FOR OSCAR MAYER FOODS' HOT DOGS AND BOLOGNA GOOD & PLENTY CANDY WITH CHOOCHOO CHARLIE AND TOOTSIE POP ADS STARRING MR OWL ASKING THE AGEOLD QUESTION HOW MANY LICKS DOES IT TAKE TO GET TO THE CENTER OF A WELL YOU KNOW THE REST NICK AT NITE ALSO IS REPLAYING OLD PUBLIC SERVICE ANNOUNCEMENTS INCLUDING THE OFTENPARODIED NATIVE AMERICAN WHO CRIES AFTER SEEING THE POLLUTION AND HAVING GARBAGE CHUCKED AT HIS FEET ANOTHER WHICH RAN LAST YEAR STARRED ACTRESS JANET LEIGH IN A 1958 SPOT URGING EVERYONE TO VOTE BUT FOR PAYING ADVERTISERS THIS IS A RIGHTS ISSUE SAYS RICH CRONIN SENIOR VICE PRESIDENT AND GENERAL MANAGER FOR NICK AT NITE YOU HAVE TO SOMETIMES PAY RESIDUALS AND YOU ALWAYS HAVE TO TRACK DOWN ALL THE PEOPLE IN THE AD AND GET THEIR PERMISSION TO RUN THE SPOT AGAIN IT TOOK ARDUOUS BEHINDTHESCENES MANEUVERING TO GET OSCAR MAYER'S OLD SPOTS BACK ON TELEVISION AND IN THIS INSTANCE THE CLIENT STILL IS REPRESENTED BY THE AD AGENCY THAT CREATED THE COMMERCIALS BACK IN THE 1960S J WALTER THOMPSON OSCAR MAYER THOUGHT ABOUT TAPPING INTO PEOPLE'S MEMORIES SAYS JERRY JOHNSTON SENIOR VICE PRESIDENT AT THOMPSON NOW A UNIT OF WPP GROUP BABY BOOMERS ARE HAVING KIDS NOW AND NOSTALGIA IS IN SO AFTER A BRAINSTORMING SESSION THE AGENCY AND CLIENT AGREED THAT THE BLACKANDWHITE COMMERCIALS ONE FEATURING A KID SINGING I'D LOVE TO BE AN OSCAR MAYER WIENER AND ANOTHER STARRING THE WIENERMOBILE WOULD BE TWO OF FOUR OLD SPOTS TO RUN AT NICK AT NITE BUT IT TOOK SIX TO NINE MONTHS TO FIND EVERYONE CONNECTED WITH THOSE COMMERCIALS EVERYONE FROM ACTORS TO DIRECTORS HAD TO BE IDENTIFIED AND LOCATED IN SOME INSTANCES THE TALENT IS ENTITLED TO RESIDUALS THE PROCESS WAS SO TIMECONSUMING THAT IT HAS DISCOURAGED OSCAR MAYER FROM TRYING IT AGAIN INTERESTINGLY THE AD AGENCIES THAT CREATED THE VINTAGE SPOTS DON'T HAVE A SAY IN WHETHER THE COMMERCIALS CAN EVER RUN AGAIN THE CLIENT OWNS ALL THE CREATIVE WORK THE OLD AGENCY HAS NO POWER IN THIS SAYS THOMPSON'S MR JOHNSTON IF THE CURRENT AGENCY WANTS TO DO IT AND THE CLIENT GOES ALONG WITH IT THE OLD AGENCY CAN'T STAND IN THE WAY DESPITE THE DELAYS NICK'S MR CRONIN PREDICTABLY THINKS IT'S WORTH THE EFFORT FOR ADVERTISERS THERE ARE A LOT OF PRODUCTS OUT THERE THAT CAN BENEFIT HE SAYS ADDING THAT HE'S EMBARKING ON AN OUT AND OUT PUSH FOR THE NICK AT NITE SALES DEPARTMENT TO APPROACH EACH SPONSOR WITH THE IDEA MOVIE STUDIOS ARE TAPPING INTO CLASSIC TELEVISION SHOWS AS THE BASIS OF SUCH FILMS AS THE FUGITIVE DENNIS THE MENACE AND SHUDDER THE BEVERLY HILLBILLIES WOOOO DOGGIE BUT NO ONE MR CRONIN LAMENTS IS CAPITALIZING ON CLASSIC COMMERCIALS NICK'S ROSTER OF SPONSORS APPEARS RIPE FOR SUCH A TIME TRIP AMERICAN EXPRESS COULD RERUN DO YOU KNOW ME FRUIT OF THE LOOM COULD RESURRECT ITS GUYS DRESSED UP AS THE VARIOUS FRUITS FEATURED IN THE LOGO AND DURACELL BATTERIES COULD REVIVE ITS WELL NEVER MIND IT HASN'T CHANGED ITS AD CAMPAIGN MUCH IN YEARS STILL ANYONE WHO COULD SHOULD SAYS LILLIAN MARESCH FOUNDER OF GENERATION INSIGHTS WHICH TRACKS THE HABITS BUYING AND OTHERWISE OF BABY BOOMERS THERE IS AN OBVIOUS FEELING OF COMFORT IN WATCHING A COMMERCIAL THAT RECALLS A TIME WHEN AN INDIVIDUAL'S LIFE WAS LESS COMPLICATED AND NICK AT NITE HAS THAT COZY FEELING SURE ENOUGH THE BASIC CABLE CHANNEL WHICH HAD AN AVERAGE AUDIENCE OF 677000 HOUSEHOLDS IN PRIME TIME IN THE FIRST QUARTER COMPARED WITH 15 MILLION FOR USA NETWORK RERUNS SUCH SHOWS AS DRAGNET SUPERMAN MARY TYLER MOORE AND EVEN THE PARTRIDGE FAMILY AND SURROUNDS THEM WITH CAMPY PROMOS OF DANCING AND SINGING TV SETS THE SLOGAN OF NICK AT NITE IS CLASSIC TV PRESERVING OUR TELEVISION HERITAGE IT EVEN USES FATHERLY DICK VAN DYKE AS ITS TONGUEINCHEEK CHAIRMAN OF THE BOARD MR JOHNSTON IS AN ENTHUSIASTIC PROPONENT OF THE OLD SPOTS IT'S THE PERFECT GENERATIONAL SELL HE SAYS YOU'RE MATCHING EDITORIAL CONTENT WITH ADVERTISING WHEN YOU USE OLD ADS WRAPPED AROUND OLD TELEVISION SHOWS SUCH A PAIRING IS RARE THE CABLE CHANNEL EVEN OFFERS POTENTIAL ADVERTISERS THE OPPORTUNITY TO PACKAGE THEIR OLD SPOTS SO THEY'RE RECOGNIZED AS BONA FIDE ADS MR CRONIN RECOMMENDS FOR INSTANCE BUYING A FULLMINUTE SPOT AND RUNNING THE OLD AD IN THE FIRST HALF FOLLOWED BY A NEW CAMPAIGN THE SUGGESTION CLEARLY WASN'T BORN FROM ANY PARTICULAR BENEVOLENCE TOWARD THE SPONSOR IT SIMPLY SPELLS MORE AD REVENUE FOR VENERABLE NICK WELLS RICH GREENE BDDP COMMUNICATIONS OF NEW YORK APPOINTED TWO TOP MANAGERS TO RUN ITS DOMESTIC AND INTERNATIONAL ADVERTISING OPERATIONS SETTING THEM UP AS PROBABLE FRONTRUNNERS TO ONE DAY SUCCEED KENNETH OLSHAN THE AGENCY'S CHAIRMAN AND CHIEF EXECUTIVE DAVID SKLAVER WAS NAMED PRESIDENT OF WELLS RICH GREENE BDDP ADVERTISING A NEW POSITION OVERSEEING DAYTODAY OPERATIONS AT THE AGENCY'S FLAGSHIP NEW YORK OFFICE AND AT ITS HOUSTON AND DALLAS OFFICES MR SKLAVER 42 YEARS OLD WAS PREVIOUSLY GROUP EXECUTIVE VICE PRESIDENT AND DIRECTOR OF ACCOUNT SERVICES A SUCCESSOR TO THOSE POSITIONS HASN'T BEEN NAMED THE AGENCY SAID NICK BAUM 46 WAS NAMED PRESIDENT OF INTERNATIONAL OPERATIONS HE WAS PREVIOUSLY MANAGING DIRECTOR OF INTERNATIONAL BUSINESS AT PARIS AGENCY BOULET DRU DUPUY PETIT WHICH OWNS A MAJORITY STAKE IN WELLS RICH THE AGENCY EXPECTS TO NAME A SUCCESSOR A WELLS RICH SPOKESWOMAN SAID MR OLSHAN 60 WILL CONCENTRATE ON NEW BUSINESS AND ON LONGTERM STRATEGIC PLANNING FOR CURRENT CLIENTS THE AGENCY SAID NEITHER MR SKLAVER NOR MR BAUM HAS BEEN DESIGNATED AS MR OLSHAN'S EVENTUAL SUCCESSOR THE SPOKESWOMAN SAID ALTHOUGH CLEARLY THEY ARE IN A POSITION TO BE CONSIDERED FOR THAT POST SOME TIME IN THE FUTURE MOBILINK THE ASSOCIATION OF CELLULAR PHONESERVICE CARRIERS ABRUPTLY PULLED ITS 20 MILLIONPLUS ADVERTISING ACCOUNT FROM SAATCHI & SAATCHI CO'S SAATCHI & SAATCHI ADVERTISING NEW YORK AND AWARDED IT TO THE SAN FRANCISCO OFFICE OF WPP GROUP'S J WALTER THOMPSON THE MOVE COMES LESS THAN A YEAR AFTER MOBILINK HIRED SAATCHI TO CREATE AN AD CAMPAIGN LAUNCHING THE CELLULAR BRAND AND JUST WEEKS AFTER THE TV ADS STARTED AIRING EARLIER THIS YEAR MOBILINK NAMED AS ITS FIRST PRESIDENT ANDREW BURROUGHS WHO HAD BEEN GLOBAL MARKETING MANAGER AT SPRINT CORP SPRINT ANOTHER THOMPSON CLIENT IS ONE OF THE CELLULAR CARRIERS LICENSING THE MOBILINK NAME OGILVY ROD WRIGHT CHAIRMAN OF THE ASIA/PACIFIC OPERATIONS OF WPP GROUP'S OGILVY & MATHER WAS NAMED TO THE NEW POST OF EXECUTIVE DIRECTOR CHAIRMAN'S OFFICE EFFECTIVE NEXT MONTH MR WRIGHT WILL MOVE TO NEW YORK FROM HONG KONG HE WILL RETAIN THE ASIA/PACIFIC POST FRANCOIS TIGER CHAIRMAN OF OGILVY & MATHER FRANCE WAS NAMED ASIA/PACIFIC PRESIDENT MR WRIGHT WILL WORK WITH OGILVY'S CHAIRMAN CHARLOTTE BEERS ON LONGTERM ISSUES SUCH AS HUMAN RESOURCES AND TRAINING THE AGENCY SAID ACCOUNT COMEDY CENTRAL TIME WARNER AND VIACOM'S JOINT VENTURE CABLE NETWORK SELECTED KOREY KAY & PARTNERS OF NEW YORK FOR ITS ESTIMATED 3 MILLION ACCOUNT PREVIOUSLY HANDLED BY SCHNURR & JACKSON OF TROY NY OTHER CONTENDERS INCLUDED INTERPUBLIC GROUP'S LOWE & PARTNERS AND GREY ADVERTISING'S GREY ENTERTAINMENT GROUP OMNICOM EARNINGS OMNICOM GROUP WHICH OWNS AGENCIES INCLUDING BBDO DDB NEEDHAM AND TBWA ADVERTISING REPORTED A 22 INCREASE IN SECONDQUARTER NET INCOME TO 273 MILLION OR 82 CENTS A SHARE FROM 224 MILLION OR 72 CENTS A SHARE IN THE YEAREARLIER PERIOD QUARTERLY REVENUE INCREASED 10 TO 3818 MILLION FROM 3476 MILLION LAST YEAR WHO'S NEWS INTERPUBLIC GROUP'S LINTAS NAMED DAVID NATHANSON 38 EXECUTIVE VICE PRESIDENT AND GROUP CREATIVE DIRECTOR ONE OF SIX IN THE NEW YORK OFFICE THE AGENCY SAID HE WILL LEAD LINTAS'S PITCH IN THE BIG INTERNATIONAL BUSINESS MACHINES CO PERSONALCOMPUTER ACCOUNT REVIEW MR NATHANSON PREVIOUSLY WORKED AT OMNICOM GROUP'S DDB NEEDHAM ON ACCOUNTS THAT INCLUDED VOLKSWAGEN 9308060035 930806 BUSINESS BRIEF TOMMY HILFIGER INC MENSWEAR MAKER'S NET ROSE BY 43 IN FISCAL 1STPERIOD BOLSTERED BY STRONG DEPARTMENT STORE SALES TOMMY HILFIGER INC POSTED A 43 INCREASE IN FISCAL FIRSTQUARTER NET AND THE COMPANY SIGNED A LICENSING CONTRACT WITH SHIRTMAKER OXFORD INDUSTRIES INC THE NEW YORK MENSWEAR MAKER SAID NET IN THE QUARTER ENDED JUNE 30 ROSE TO 3 MILLION OR 20 CENTS A SHARE FROM 21 MILLION OR 18 CENTS A SHARE A YEAR EARLIER WHEN THE COMPANY HAD 30 FEWER SHARES OUTSTANDING SALES CLIMBED 52 TO 398 MILLION FROM 262 MILLION DURING THE LATEST QUARTER HILFIGER SAID IT OPENED 85 INSTORE BOUTIQUES IN DEPARTMENT STORES BRINGING THE TOTAL NUMBER TO 303 HILFIGER'S LICENSING CONTRACT WITH OXFORD WILL MARK THE COMPANY'S FIRST FORAY INTO MARKETING MEN'S DRESS SHIRTS UNDER THE TOMMY HILFIGER LABEL STARTING IN FALL 1994 HILFIGER ALSO NAMED TO ITS BOARD ROBERT C GRAYSON 48 YEARS OLD FORMERLY CHIEF EXECUTIVE OFFICER OF THE LERNER DIVISION OF LIMITED INC THE APPOINTMENT INCREASES THE SIZE OF THE BOARD TO 11 MEMBERS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE HILFIGER SHARES CLOSED AT 25625 UP 25 CENTS 9308060034 930806 BUSINESS BRIEF TOLL BROTHERS INC HOME BUILDER HITS RECORD FOR BACKLOG OF CONTRACTS TOLL BROTHERS INC SAID NEW SALES CONTRACTS SIGNED IN THE THIRD QUARTER ENDED JULY 31 WERE ABOUT 105 MILLION BRINGING ITS TOTAL BACKLOG OF ORDERS TO A RECORD TOLL BASED IN HUNTINGDON VALLEY PA DESIGNS AND BUILDS LUXURY HOMES IN THE EASTERN US THE COMPANY'S BACKLOG OF HOMES UNDER CONTRACT AS OF JULY 31 STOOD AT 282 MILLION UP FROM 191 MILLION A YEAR EARLIER ROBERT I TOLL CHAIRMAN AND CHIEF EXECUTIVE SAID ALTHOUGH WE HAVE BEEN ABLE TO ACHIEVE RECORD CONTRACT SIGNINGS AND BACKLOG LEVELS WE REMAIN CAUTIOUS DUE TO A WEAKNESS IN CONSUMER CONFIDENCE SHARES OF TOLL CLOSED UNCHANGED AT 1075 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9308060033 930806 BUSINESS BRIEF ALLTEL CORP UNIT RECEIVES GTE CONTRACT FOR CELLULAR PHONE BILLING ALLTEL CORP SAID ITS SYSTEMATICS UNIT HAS BEEN HIRED TO HANDLE ALL OF THE BILLING AND RECORDS PROCESSING FOR GTE CORP'S CELLULAR TELEPHONE BUSINESS THOUGH ALLTEL BASED IN LITTLE ROCK ARK DECLINED TO DISCLOSE FINANCIAL DETAILS OF THE AGREEMENT ANALYSTS PEGGED THE VALUE OF THE DEAL AT MORE THAN 250 MILLION OVER THE NEXT 10 YEARS GTE'S 14 MILLION CELLULARPHONE CUSTOMERS REPRESENT ABOUT 10 OF THE NATIONAL MARKET UNDER TERMS OF THE AGREEMENT SYSTEMATICS WILL PROCESS CELLULAR TELEPHONE BILLING FOR GTE'S TELECOMMUNICATIONS PRODUCTS AND SERVICES GROUP AT SYSTEMATICS' LITTLE ROCK TECHNOLOGY CENTER ALLTEL'S STOCK CLOSED UNCHANGED AT 26875 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9308060031 930806 BRITISH NEWCAR SALES CLIMBED 7 IN JULY FROM A YEAR EARLIER SPECIAL TO THE WALL STREET JOURNAL LONDON NEWCAR SALES IN BRITAIN ROSE 7 IN JULY FROM A YEAR EARLIER THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS ANNOUNCED THAT SALES OF PASSENGER VEHICLES AS MEASURED BY NEWCAR REGISTRATIONS WERE 35376 COMPARED WITH 33051 A YEAR EARLIER THE LATEST RESULT PUT THE TOTAL FOR THE FIRST SEVEN MONTHS OF 1993 AT 874411 UP 91 FROM 801796 A YEAR EARLIER IMPORTS WERE 55 OF THE JULY MARKET UP FROM 52 A YEAR EARLIER THE RATIO FOR THE FIRST SEVEN MONTHS OF 1993 WAS 54 DOWN FROM 55 SMMT PRESIDENT GEOFFREY WHALEN SAID THE JULY SALES TOTAL WAS WELL BELOW THE 113919 NEW CARS THAT WERE REGISTERED IN JUNE HE LINKED THAT DECLINE TO PENTUP DEMAND FROM PURCHASERS WAITING FOR THE START OF THE NEW MODEL YEAR WHICH BEGAN SUNDAY BUT HE SAID THE JULY TOTAL DOES CONFIRM THAT SALES CONTINUE TO SHOW A MODEST GROWTH COMPARED WITH THE DISASTROUSLY LOW LEVELS LAST YEAR MR WHALEN SAID EARLY READINGS OF AUGUST 1993 SALES SUGGEST A RISE COMPARED WITH 1992 LEVELS WILL BE RECORDED ALTHOUGH HE CAUTIONED THAT THE PEAK LEVELS OF 1988 AND 1989 WON'T BE REACHED TALK OF AN AUGUST BONANZA FOR MANUFACTURERS AND DEALERS IS FAR FROM THE TRUTH HE SAID THE SMMT PRESIDENT WAS ALSO CAUTIOUS ABOUT THE OUTLOOK FOR EUROPEAN DEMAND NOTING THAT SALES ON THE CONTINENT ARE DOWN ABOUT 20 FROM A YEAR EARLIER AS ECONOMIES THERE FACE RECESSION HE EXPRESSED HOPE THAT A RECENT WIDENING OF CURRENCY BANDS IN THE EUROPEAN EXCHANGE RATE MECHANISM WILL FOSTER INTERESTRATE CUTS IN KEY CONTINENTAL MARKETS AND SAID THIS WOULD HELP UK PRODUCERS TO KEEP UP THEIR CURRENT LEVELS OF OUTPUT ON THE DOMESTIC FRONT MR WHALEN SAID THE GOVERNMENT SHOULD MAKE SURE THAT THE POUND DOESN'T RISE MUCH ABOVE CURRENT LEVELS WHICH HE TERMED COMPETITIVE HE ALSO SUGGESTED THAT A UK INTERESTRATE CUT SHOULD BE CONSIDERED IF THE CURRENT RATE OF RECOVERY SHOWS SIGNS OF FALTERING 9308060030 930806 BUSINESS BRIEF BOSTON FIVE BANCORP INC LOSS IS EXPECTED TO NARROW IN FIRM'S FISCAL 3RD QUARTER BOSTON FIVE BANCORP INC SAID IT EXPECTS TO REPORT A LOSS OF ABOUT 45 MILLION TO 6 MILLION FOR THE FISCAL THIRD QUARTER ENDING JULY 31 IN THE 1992 THIRD QUARTER BOSTON FIVE HAD A LOSS OF 99 MILLION OR 140 A SHARE THE BOSTONBASED BANKING CONCERN SAID THAT THE LOSS ARISES OUT OF A PROVISION FOR LOSSES ON LOANS AND JOINT VENTURES OF ABOUT 45 MILLION AND ANTICIPATED WRITEDOWNS OF EXCESS MORTGAGE SERVICING RIGHTS OF APPROXIMATELY 35 MILLION DUE TO REFINANCING OF RESIDENTIAL MORTGAGE LOANS THE COMPANY ALSO SAID NONPERFORMING ASSETS ARE EXPECTED TO DECLINE FOR THE NINTH CONSECUTIVE QUARTER THE COMPANY SAID THE EXPECTED LOSSES WILL NOT AFFECT ITS AGREEMENT TO BE ACQUIRED BY CITIZENS FINANCIAL GROUP INC A RHODE ISLANDBASED UNIT OF ROYAL BANK OF SCOTLAND GROUP PLC FOR 95 MILLION OR 13 A SHARE A SPECIAL MEETING OF BOSTON FIVE STOCKHOLDERS TO ACT UPON THE PROPOSED TRANSACTION IS SET FOR AUG 9308060029 930806 BUSINESS BRIEF SOUTHERN NATIONAL CORP FIRST SAVINGS TO BE BOUGHT IN 181 MILLION STOCK SWAP SOUTHERN NATIONAL CORP LUMBERTON NC SAID IT WILL BUY FIRST SAVINGS BANK FSB IN GREENVILLE SC IN A STOCK SWAP VALUED AT 181 MILLION SOUTHERN NATIONAL WHICH HAS 52 BILLION IN ASSETS SAID IT WILL ISSUE 0855 COMMON SHARE FOR EACH FIRST SAVINGS SHARE OUTSTANDING THE ACQUISITION WOULD MAKE SOUTHERN NATIONAL THE THIRD LARGEST BANK IN SOUTH CAROLINA AND GIVE SOUTHERN NATIONAL ENTRY INTO 21 NEW SOUTH CAROLINA MARKETS FIRST SAVINGS WITH ASSETS OF ABOUT 2 BILLION IS THE LARGEST REMAINING INDEPENDENT BANK IN A STATE WHERE MANY BANKS HAVE BEEN BOUGHT BY OUTOFSTATE CONCERNS IN JUNE FIRST SAVINGS' STOCK ROSE 2 ON THE ANNOUNCEMENT THAT IT ENTERED INTO PRELIMINARY TALKS ABOUT BEING ACQUIRED IN OVERTHECOUNTER TRADING FIRST SAVINGS ROSE 50 CENTS TO 16 SOUTHERN NATIONAL FELL 125 CENTS TO 2175 ON THE NEW YORK STOCK EXCHANGE 9308060028 930806 POLITICS & POLICY DOING THE DEAL THE DEFICITREDUCTION CONFERENCE NO REASONABLE OFFERS REFUSED AS ADMINISTRATION BARGAINED TO NAIL DOWN DEFICIT PACKAGE IN HOUSE BY DAVID ROGERS AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON WHEN THE WHITE HOUSE PUT IN ITS SUCCESSFUL BID FOR REP BILL SARPALIUS'S VOTE ON THE BUDGET LAST NIGHT THE TEXAS DEMOCRAT PUT IN A BID OF HIS OWN TO EXPAND ON A COSTLY ENERGY DEPARTMENT FACILITY IN AMARILLO REP SAM GEJDENSON D CONN BY COMPARISON CAME CHEAP HE JOKINGLY SAID HE WANTED THE HEADS OF TWO SENATORS AND OFFERED TO PROVIDE A LIST AS CONGRESS PUSHED TOWARD FINAL ADOPTION OF PRESIDENT CLINTON'S AMBITIOUS DEFICITREDUCTION PLAN LAST NIGHT THE BARTERING WAS AS THICK AS THE VOTE MARGIN WAS THIN DEFECTIONS IN THE SENATE MOST NOTABLY BY SEN DAVID BOREN D OKLA WIPED OUT WHATEVER LEEWAY WAS LEFT TO THE PRESIDENT THERE AND JUST AS THE REMAINING DEMOCRATS SOUGHT TO USE THIS NEW LEVERAGE HOUSE MEMBERS TRADED ON THEIR OWN LOYALTIES IN THE TORTUOUS VOTECOUNTING LEADING UP TO LAST NIGHT'S 218216 ROLL CALL APPROVING THE PLAN THE ATTENTION IS ALWAYS ON SENATOR X AND HIS PARTICULAR PROBLEM WE HAVE MEMBERS HERE WHO HAVE PARTICULAR PROBLEMS AS WELL MAJORITY LEADER RICHARD GEPHARDT COMPLAINED EARLIER THIS WEEK OR AS REP PAT WILLIAMS D MONT PUT IT ONCE DAVID BOREN BECAME A POLITICAL CAPITALIST THE PLACE BECAME A MIDEAST BAZAAR WHAT SETS THIS FIGHT APART IS THAT THE MARTYRS ARE BARGAINING ALONGSIDE THE LIONS WHILE HOUSE MODERATES WERE DEMANDING WHAT AMOUNTS TO A WORLD SERIES PLAYOFF ROUND OF SPENDING CUTS IN RETURN FOR THEIR SUPPORT THE PRESIDENT'S CABINET WAS GETTING OTHER CALLS FROM HOUSE MEMBERS ASKING FOR SPENDING INCREASES IN MR SARPALIUS'S CASE HIS TEXAS DISTRICT IS HOME FOR THE GOVERNMENT'S SPRAWLING PANTEX FACILITY A PRIMARY ASSEMBLY AND DISASSEMBLY PLANT FOR NUCLEAR WEAPONS THE END OF THE COLD WAR HAS SET OFF INTENSE COMPETITION FOR WHAT REMAINS OF THE ENERGY DEPARTMENT'S NUCLEAR BUDGET AND MR SARPALIUS HAS PRESSED NOT ONLY TO PROTECT PANTEX'S SHARE BUT TO EXPAND IT EAGER FOR MR SARPALIUS'S VOTE THE WHITE HOUSE DISPATCHED ENERGY SECRETARY HAZEL O'LEARY TO MEET WITH THE TEXAN YESTERDAY AFTERNOON AND THOUGH THE SECRETARY'S OFFICE INSISTED ONLY THE DEFICIT MEASURE WAS DISCUSSED NOT THE PANTEX FACILITY MR SARPALIUS WAS MORE EXPANSIVE AS HE ANNOUNCED LAST NIGHT HE WOULD SUPPORT THE PRESIDENT AFTER OPPOSING THE BUDGET IN MAY THE TEXAN SAID OTHER ISSUES SUCH AS THE BILL'S EARNEDINCOME TAX CREDIT WERE A MAJOR FACTOR BUT HE ALSO SPOKE OF HIS HOPES FOR A LABORATORY SOMEDAY IN AMARILLO MEANWHILE TREASURY SECRETARY LLOYD BENTSEN AND PRESIDENT CLINTON HIMSELF WERE TELEPHONING REP SOLOMON ORTIZ WHO HAD HIS OWN SHOPPING LIST AND VOTED FOR THE BILL LAST NIGHT WITH THREE MILITARY BASES IN HIS DISTRICT THE TEXAS DEMOCRAT WASN'T SHY ABOUT ASKING THAT HIS CONSTITUENTS GET A SHARE OF PROMISED DEFENSE CONVERSION FUNDS AS WELL AS A PIECE OF PENTAGON HELICOPTER CONTRACTS AND REP EARL HILLIARD OVERCAME HIS CONCERN ABOUT THE NEW GAS TAX AFTER DISCUSSIONS WITH THE ADMINISTRATION ABOUT JOB CORPS CENTERS AND GRANTS BENEFITING POOR YOUTH AT CAMPUSES IN HIS RURAL ALABAMA DISTRICT IF HOUSE AND SENATE LEADERS ARE BEARING THE BRUNT OF THIS NAILBITING PROCESS THEY AREN'T ABOVE PLACING THEIR OWN BETS ON THE OUTCOME SENATE MAJORITY LEADER GEORGE MITCHELL UP FOR REELECTION NEXT YEAR IN MAINE HAS A STAKE IN THE REPEAL OF THE LUXURY TAX WHICH IS IMPORTANT TO THE BOATING INDUSTRY IN HIS HOME STATE HIS SECONDINCOMMAND MAJORITY WHIP WENDELL FORD OF KENTUCKY INSERTED PROVISIONS IN THE PACKAGE INTENDED TO BENEFIT HIS OWN HOMESTATE TOBACCO FARMERS BY IMPOSING A 75 DOMESTIC CONTENT STANDARD ON ALL CIGARETTES MANUFACTURED IN THE US EVEN THOSE FOR EXPORT WHILE FUEL TAXES WOULD GO UP MR GEPHARDT SUCCESSFULLY PRESSED FOR A TWOYEAR SHELTER FOR COMMERCIAL AIRLINES INCLUDING TROUBLED TRANS WORLD AIRLINES OF MOUNT KISCO NY WHICH HAS A MAJOR PRESENCE IN HIS HOME OF ST LOUIS AND SPEAKER THOMAS FOLEY PLAYED A BEHINDTHESCENES ROLE IN HELPING THE PACIFIC NORTHWEST SECURE AN ESTIMATED 270 MILLION IN NEW REVENUE GENERATED BY THE REPEAL OF A TAX PROVISION THAT NOW BENEFITS TIMBER COMPANIES SHIPPING RAW LOGS OVERSEAS THE MONEY SPREAD OVER FIVE YEARS WOULD GUARANTEE INCOME TO MEET FEDERAL PAYMENTS TO LOGGING COUNTIES IN NORTHERN CALIFORNIA OREGON AND MR FOLEY'S HOME STATE OF WASHINGTON THE TRANSFER WHICH WAS NEVER WRITTEN INTO EITHER OF THE BUDGET BILLS PASSED BY THE HOUSE OR SENATE WOULD HAVE THE RIPPLE EFFECT OF FREEING UP MILLIONS IN ALREADY APPROPRIATED FUNDS FOR THE PRESIDENT'S TIMBER AND ENVIRONMENTAL IMPROVEMENTS FOR THE SAME REGION PERHAPS ITS JUST MORNINGAFTER GUILT BUT EVEN SENATORS CAN GET EMBARRASSED BY THEIR IMAGE AS PETTY BARGAINERS HAVING WON A MORATORIUM ALBEIT ABBREVIATED ON THE SALE OF A BOVINE GROWTH HORMONE SEN RUSSELL FEINGOLD OF WISCONSIN INSISTED THAT WHAT MAY HAVE APPEARED AS A THREAT WAS REALLY HIS OWN EARNESTNESS I DID NOT INDICATE THAT I WOULD ABANDON THE PRESIDENT IF I DID NOT GET MY WAY THE FRESHMAN DEMOCRAT SAID YESTERDAY HOUSE NEGOTIATORS MISTOOK INTENSITY AND HARD WORK FOR A THREAT THE MORATORIUM WATERED DOWN TO 90 DAYS FROM 12 MONTHS WAS OF IMMEDIATE FINANCIAL INTEREST TO MONSANTO CO WHICH HAS INVESTED IN PRODUCTION OF THE HORMONE AND IS BASED IN MR GEPHARDT'S HOME STATE BUT THE FIGHT TRIGGERED INVOLVEMENT FROM THE LARGER BIOTECHNOLOGY INDUSTRY AND POWERFUL LAWMAKERS SUCH AS ENERGY AND COMMERCE COMMITTEE CHAIRMAN JOHN DINGELL D MICH GIVEN SUCH FORMIDABLE OPPOSITION MR FEINGOLD WOULDN'T HAVE GOTTEN AS FAR AS HE DID WITHOUT THE PROTECTION OF A NERVOUS SENATE LEADERSHIP AND HOUSE NEGOTIATORS FEELING DUPED CONSIDERED PULLING OUT OF THE DEAL AFTER LEARNING OF THE SENATOR'S STAND WE'RE UPSET THAT FEINGOLD LED US TO BELIEVE HIS VOTE HINGED ON THIS DECLARED MISSOURI REP HAROLD VOLKMER A SENIOR DEMOCRAT ON THE HOUSE AGRICULTURE COMMITTEE IF HE HAD SAID THAT FROM THE BEGINNING HE WOULD NEVER HAVE GOTTEN ANYTHING FOR THOSE LEFT OUT OF THE FINAL BARGAINING THE SENTIMENTS WERE MOST INTENSE HAVING FAILED TO BLOCK A PROVISION SCALING BACK THE DEDUCTION FOR MEALS AND ENTERTAINMENT EXPENSES THE HOTEL AND RESTAURANT EMPLOYEES UNION LASHED OUT AT OLD FRIENDS IN THE DEMOCRATIC LEADERSHIP AND URGED A NO VOTE ON THE PACKAGE AND WHILE THE FINAL BILL PROMISES A NEW CREDIT TO HELP OFFSET THE COST OF SOCIAL SECURITY TAXES PAID BY RESTAURANT OWNERS ON TIPS EARNED BY THEIR WORKERS EVEN THAT CONCESSION PROVOKED RECRIMINATIONS AS INITIALLY WRITTEN THE CREDIT WOULD HAVE EFFECTIVELY EXCLUDED MANY RESTAURANTS IN HOTELS OR IN CASINOS WHICH ARE IMPORTANT TO DEMOCRATS IN NEW JERSEY AND NEVADA THUS REP JAMES BILBRAY D NEV WAS AN IMPORTANT VOTE THIS FORCED A FLURRY OF CALLS AND REQUIRED A LANGUAGE CHANGE FACILITATED BY SPEAKER FOLEY HIMSELF IN A FACETOFACE MEETING THIS WEEK WITH WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI WATCHING WITH DISMAY WAS HAWAII REP NEIL ABERCROMBIE A DEMOCRAT WHO HAD ADOPTED THE WORKERS' CAUSE AND THE SLOGAN YOU'RE NOT GOING TO BECOME A SAINT WALKING ON MY BACK THOUGH OPENLY LEANING AGAINST THE BILL MR ABERCROMBIE STILL WENT TO MEETINGS OF THE DEMOCRATIC WHIP ORGANIZATION THOUGH SOME SUGGESTED THE WARY LEADERSHIP WAS SHY OF GIVING HIM ALL ITS INTELLIGENCE I PLAY TO THE END SAID MR ABERCROMBIE WHOSE LOYALTY TO THE PARTY WON OUT WHEN HE SUPPORTED THE BUDGET LAST NIGHT I'M LIKE REGGIE JACKSON I RUN OUT EVERY GROUNDER 9308060027 930806 DEFICIT PLAN SURVIVES THE HOUSE 218216 IN HARDWON VOTE UNCERTAIN UNTIL END DEMOCRATS HOPE THE WIN WILL CREATE MOMENTUM NEEDED IN SENATE TODAY BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE KEPT PRESIDENT CLINTON'S ECONOMIC PROGRAM ALIVE WITH A CLOSE HARDWON VOTE THAT WAS IN SUSPENSE UNTIL THE VERY END THE 218216 VOTE LAST NIGHT LEFT ONE MORE HURDLE FOR THE PRESIDENT'S TOPPRIORITY INITIATIVE TO CUT THE FEDERAL DEFICIT BY 496 BILLION OVER FIVE YEARS WHILE AT THE SAME TIME PROVIDING EXPENSIVE INITIATIVES FOR BUSINESS AND THE POOR THE SHARPLY DIVIDED SENATE IS TO VOTE TODAY AND THE WHITE HOUSE AND DEMOCRATIC LEADERS IN CONGRESS HOPE THE HOUSE VICTORY WILL PROVIDE THE NEEDED MOMENTUM AFTER THE VOTE PRESIDENT CLINTON IN THE ROSE GARDEN SAID THE MARGIN WAS CLOSE BUT THE MANDATE WAS CLEAR AND THEN REFERRING TO THE VOTE IN THE SENATE TODAY HE ADDED I WILL CONTINUE TO FIGHT FOR THIS LEGISLATIVE PACKAGE WITH EVERYTHING I HAVE HOUSE SPEAKER THOMAS FOLEY D WASH CALLED THE PASSAGE OF THE BILL A CRITICAL FIRST STEP IN BRINGING DOWN THE DEFICIT THE MAJORITY LEADER REP RICHARD GEPHARDT OF MISSOURI SAID PASSAGE SHOULD GIVE THE ECONOMY CONFIDENCE AND HE PREDICTED THAT INTEREST RATES WOULD GO DOWN FURTHER THE PRESIDENT ADMINISTRATION OFFICIALS AND DEMOCRATIC LEADERS SCRAMBLED THROUGHOUT THE DAY TO SOLIDIFY SUPPORT AND TO WIN CONVERTS TO OFFSET THE LOSS OF SOME ONCESUPPORTIVE LAWMAKERS WHO PLANNED TO DEFECT THEY BARGAINED WITH A CRITICAL BLOC OF ABOUT A DOZEN CONSERVATIVES TO PROMISE FUTURE SPENDING CUTS AND BARTERED FOR ASSORTED CONCESSIONS WITH OTHER LAWMAKERS BUT IN THE END WHAT CARRIED THE DAY WAS THE ARGUMENT THAT FAILURE WOULD BE POLITICALLY DEVASTATING TO THE PRESIDENT AND TO HIS PARTY AS UNPOPULAR AS THE MIX OF TAX INCREASES AND SPENDING CUTS HAD BECOME IN THE NEARLY SIX MONTHS SINCE MR CLINTON UNVEILED HIS PLAN DEMOCRATS WERE MORE FEARFUL OF DOING NOTHING GIVEN THE PUBLIC'S DEMAND FOR AN END TO GRIDLOCK NOW IS THE TIME TO GOVERN DECLARED THE HOUSE'S LEAD NEGOTIATOR FOR THE BILL CHAIRMAN DAN ROSTENKOWSKI OF THE WAYS AND MEANS COMMITTEE AT THE START OF YESTERDAY'S DEBATE NOT A SINGLE REPUBLICAN VOTED FOR THE COMPROMISE JUST AS NO REPUBLICAN VOTED FOR EITHER THE EARLIER HOUSE OR SENATE BILLS ON WHICH IT IS BASED NEVER IN MEMORY HAS SUCH MAJOR LEGISLATION PASSED WITHOUT ANY OPPOSITIONPARTY SUPPORT THE PARTISANSHIP THAT HAS MARKED THE MEASURE'S PROGRESS WILL LEAVE LONGTIME SCARS BETWEEN DEMOCRATS AND REPUBLICANS THAT SPELL TROUBLE FOR THE REST OF MR CLINTON'S AGENDA SUCH AS HEALTHCARE AND WELFARE REFORM EVEN WITH THE HOUSE VICTORY THE SENATE OUTCOME REMAINS IN DOUBT HAVING PASSED ITS OWN BILL IN JUNE ONLY WITH THE AID OF VICE PRESIDENT AL GORE'S TIEBREAKER VOTE THE SENATE CAN'T AFFORD TO LOSE A SINGLE DEMOCRAT YESTERDAY SEN ROBERT KERREY OF NEBRASKA A PAST SUPPORTER OF THE SENATE BILL THOUGH A RELUCTANT ONE WAS SAID TO BE LEANING AGAINST THE MEASURE THE BUDGET PACKAGE LEAVES INTACT MUCH OF MR CLINTON'S ORIGINAL PLAN PARTICULARLY HIS PROPOSALS FOR TAX INCREASES ON UPPERINCOME AMERICANS AND CORPORATIONS AND FOR SPENDING CUTS MOSTLY IN DEFENSE AND MEDICARE BUT THE PRESIDENT'S ORIGINAL CALL FOR A BROADBASED ENERGY TAX HAS BEEN REPLACED BY A MUCH SMALLER 43CENTAGALLON GASOLINE TAX LEAVING MIDDLECLASS PEOPLE FACING ONLY A MODEST INCREASE OF ABOUT 1 IN THEIR TAX BURDENS THE BIG EFFECTS OF THE TAX PROVISIONS WILL BE FELT BY PEOPLE EARNING MORE THAN 200000 A YEAR WHO WILL SEE THEIR TAX BITE RISE BY AN AVERAGE 174 AND THOSE WORKERS WHO EARN LESS THAN 10000 A YEAR WHO WILL GET A LARGE TAX BREAK AS A RESULT OF A GREATLY EXPANDED EARNED INCOME TAX CREDIT WHILE THE ADMINISTRATION AND CONGRESSIONAL LEADERS CAME TO CHARACTERIZE THE BILL AS A DEFICITREDUCTION MEASURE IT ALSO RETAINED A NUMBER OF BUSINESSTAX INCENTIVES EXPANSION OF A TAX CREDIT FOR THE WORKING POOR AND INCREASES FOR FOOD STAMPS CHILD WELFARE AND IMMUNIZATIONS THOUGH AT LEVELS FAR LOWER THAN MR CLINTON PROPOSED AS PART OF HIS INVESTMENT STRATEGY EVEN AS THE HOUSE DEBATED SPEAKER FOLEY AND MAJORITY LEADER GEPHARDT MET WITH CONSERVATIVE DEMOCRATS AND EMERGED WITH A SORT OF DIPLOMATIC COMMUNIQUE THAT SEALED SEVERAL LAWMAKERS' VOTES IN IT THE LEADERS PROMISED FURTHER ACTION THIS FALL ON ADDITIONAL MEASURES AIMED AT CUTTING FEDERAL BENEFIT PROGRAMS INCLUDING MEDICARE AND ON A PROMISED CLINTON INITIATIVE TO RESCIND SOME SPENDING THAT HAS PREVIOUSLY BEEN APPROVED CLOSING LAST NIGHT'S HOUSE DEBATE SPEAKER FOLEY RALLIED DEMOCRATS FOR THE VOTE DECLARING TO CHEERS THE REPUBLICAN PARTY WILL MARCH IN LOCKSTEP SO WE ON THIS SIDE OF THE AISLE MUST BEAR THE BURDEN OF RESPONSIBILITY THE ROLL CALL STALLED AT 216214 WITH FOUR DEMOCRATS ENOUGH TO TIP THE BALANCE STILL NOT VOTING FINALLY TWO WENT TO THE HOUSE DESK TOGETHER TO SIGN THE GREEN CARDS SIGNIFYING YES VOTES REP MARJORIE MARGOLIESMEZVINSKY OF PENNSYLVANIA A FRESHMAN FROM A CONSERVATIVE DISTRICT WHO HAD VOTED AGAINST THE EARLIER BILL IN MAY AND VETERAN REP PAT WILLIAMS OF MONTANA A PAST SUPPORTER WHO HAD BEEN RELUCTANT TO VOTE FOR THE FINAL VERSION BECAUSE OF THE GASOLINE TAX THE FIRST BILL PASSED 219213 AS THEY VOTED THEIR FELLOW DEMOCRATS CHEERED WHILE REPUBLICANS JEERED GOODBYE MARJORIE IN REFERENCE TO WHAT THEY CONSIDER HER NEW VULNERABILITY IN NEXT YEAR'S ELECTIONS FEMALE DEMOCRATS GATHERED AROUND TO CONGRATULATE HER IN THE END 41 DEMOCRATS BROKE RANKS AND OPPOSED THE PACKAGE AFTERWARD OUTSIDE THE HOUSE CHAMBER AN EMOTIONAL REP ROSTENKOWSKI HUGGED WHITE HOUSE BUDGET DIRECTOR LEON PANETTA AND TOLD REPORTERS THAT THE VICTORY BELONGS TO A YOUNG PRESIDENT WHO HAS SOME GUTS AND THIS IS WHAT THE COUNTRY IS BEGGING FOR IN MY OPINION THE PRESIDENT SPENT ALMOST THE WHOLE DAY ON THE TELEPHONE WITH WAVERING LAWMAKERS WE ANTICIPATED A CLOSE VOTE SAID WHITE HOUSE CHIEF OF STAFF THOMAS MCLARTY A NUMBER OF MEMBERS WHILE THEY HAD AN INCLINATION TO VOTE AGAINST THE BILL THEY REALLY UNDERSTOOD WE NEEDED TO MOVE FORWARD THEY REALLY DIDN'T WANT A LOSS TONIGHT TENSION IN THE OVAL OFFICE WAS HEAVY THROUGHOUT THE VOTE IN THE FINAL MINUTES TREASURY SECRETARY LLOYD BENTSEN TURNED TO MR MCLARTY AND SAID I DON'T THINK I'VE SEEN ONE QUITE THIS CLOSE THE PRESIDENT AND HIS TOP AIDES CONSUMED LARGE QUANTITIES OF PEPPERIDGE FARM COOKIES IN THE FINAL 45 MINUTES OF THEIR LOBBYING CAMPAIGN IN THE DEBATE REPUBLICANS REPEATEDLY CHARACTERIZED THE BILL AS A MIDDLECLASS TAX MEASURE FOCUSING ON THE INCREASE IN THE GASOLINE TAX REP GERALD SOLOMON R NY BRANDISHED A COPY OF MR CLINTON'S CAMPAIGN BOOK PUTTING PEOPLE FIRST TO QUOTE ITS PASSAGES OPPOSING GASOLINE TAX INCREASES AND VOWING NOT TO ADD TO THE TAXES OF THE MIDDLE CLASS IN THE HALLS REPUBLICANS AND LOBBYISTS FOR CONSERVATIVE GROUPS INCLUDING THE CHRISTIAN COALITION WORE LAPEL BUTTONS READING NO MIDDLECLASS TAXES A FEW REPUBLICANS ALSO ALLUDED TO THE TAXES ON WEALTHY AMERICANS THAT ACCOUNT FOR MOST OF THE BILL'S REVENUES THOUGH GENERALLY THE GOP WAS CHARY OF BEING SEEN AS PROTECTORS OF THE RICH THIS PACKAGE BREEDS CLASS WARFARE SAID REP GEORGE GEKAS R PENN A CONGRESSIONAL BUDGET OFFICE ANALYSIS OF THE PACKAGE SHOWS THAT FAMILIES MAKING LESS THAN 30000 A YEAR WOULD GET A TAX CUT UNDER THE BILL WITH MOST OF THAT GOING TO THE POOR MAKING LESS THAN 10000 A YEAR FOR FAMILIES WITH INCOMES BETWEEN 30000 AND 200000 THE TAX INCREASE WOULD RANGE FROM 07 TO 19 DEMOCRATS HIGHLIGHTED THE ARGUMENT THAT THE RICH WOULD CARRY THE BURDEN OF THE BILL'S TAX INCREASES MINDFUL THAT ONE OF MR CLINTON'S CONTINUING POLITICAL PROBLEMS IS THAT AMERICANS EITHER REMAIN MISINFORMED ABOUT THE BASIC STRUCTURE OF HIS PLAN OR THEY SIMPLY DON'T BELIEVE HIS EXPLANATION OF IT PERHAPS THE MOST STRIKING EXAMPLE OF THIS CAME IN A POLL TAKEN IMMEDIATELY AFTER THE PRESIDENT'S TUESDAY NIGHT SPEECH IN WHICH HE WENT TO GREAT LENGTHS TO ILLUSTRATE THAT THE OVERWHELMING SHARE OF THE TAX BURDEN FALLS ON THE WEALTHIEST AMERICANS JUST AFTER THAT SPEECH A CNNUSA TODAY POLL FOUND THAT 68 OF THOSE SURVEYED STILL SAID THAT MIDDLEINCOME AMERICANS WILL PAY MOST NEW TAXES UNDER THE PLAN COMPARED WITH JUST 22 WHO SAID WEALTHY AMERICANS WILL PAY MOST OF THE TAXES THEY JUST DON'T BELIEVE HIM POLITICAL ANALYST CHARLES COOK SAYS OF THE PUBLIC HOUSE DEMOCRATS FORMED WHAT THEY CALLED A TRUTH SQUAD TAKING TURNS COUNTERING REPUBLICAN ATTACKS ON THE BILL AND EMPHASIZING THE TAXES ON THE RICHEST AMERICANS AND CORPORATIONS THE BILL WOULD RAISE THE TOP MARGINAL RATE FOR COUPLES WITH TAXABLE INCOME AFTER DEDUCTIONS ABOVE 140000 BUT DEMOCRATS HAVE CHOSEN TO ARGUE THAT IN FACT THAT WOULD APPLY TO THOSE WITH ADJUSTED GROSS INCOMES BEFORE DEDUCTIONS OF 180000 AND ABOVE THERE ARE NO INCOMETAX INCREASES FOR THE MIDDLE CLASS SAID REP BILL RICHARDSON OF NEW MEXICO JITTERY OVER THE REPUBLICAN ATTACKS SOME WAVERING DEMOCRATS WERE CALMED BY THE CIRCULATION OF CENSUS FIGURES SHOWING THAT MOST PEOPLE IN THEIR DISTRICTS WOULDN'T BE HIT BY THE HIGHER INDIVIDUAL INCOME TAX RATES TEXAS REP SOLOMON ORTIZ SAID HE LEARNED THAT ONLY 1300 HOUSEHOLDS IN HIS DISTRICT REPORT GROSS INCOME OF 180000 OR MORE WHILE SOME 51000 HOUSEHOLDS WOULD BENEFIT FROM THE EXPANSION OF THE TAX CREDIT FOR POOR WORKERS REP KAREN THURMAN OF FLORIDA FOUND THAT FEWER THAT 1 OF HER DISTRICT'S RESIDENTS WOULD BE AFFECTED BY HIGHER INCOME TAXES REP THURMAN ANNOUNCED HER SUPPORT AFTER THE HOUSE LEADERS' STATEMENT ENDORSING MORE SPENDING CUTS SAYING IT'S TIME TO MOVE ON EVEN SOLID ADMINISTRATION BACKERS WERE NERVOUSLY ACKNOWLEDGING THE POTENTIAL FOR DEFEAT AS LATE AS EARLY EVENING BUT THEY HAD FACED A SIMILAR CLIFFHANGER ON THE MAY VOTE FOR THE HOUSE BILL AND JUST AS THEN THEY ENTERED THE FINAL DEBATE SHORT OF A MAJORITY AND CONVERTED UNDECIDED DEMOCRATS EVEN AS THE ROLL CALL PROCEEDED IN COURTING VOTES THE PARTY LEADERS WERE AIDED BY THE FACT THAT THE FINAL COMPROMISE DOESN'T INCLUDE MR CLINTON'S BROADBASED ENERGY TAX THE MAIN REASON THAT 38 DEMOCRATS HAD OPPOSED THE EARLIER HOUSE BILL AT THE SAME TIME THEY WERE FINDING THAT THE WIDELY PUBLICIZED PROPOSALS LAST MAY TO DISCIPLINE THOSE SUBCOMMITTEE CHAIRMEN WHO DEFECTED HAD BACKFIRED SOME INCLUDING REPS RICHARD LEHMAN OF CALIFORNIA HAD BEEN LIONIZED BACK HOME FOR VOTING NO DESPITE THE THREAT TO THEIR LEGISLATIVE RANK MAKING IT NEARLY IMPOSSIBLE TO SWITCH SIDES NONETHELESS REP JOLENE UNSOELD D WASH ONE OF THE MAIN ADVOCATES OF DISCIPLINARY ACTION WAS PUSHING THE IDEA AGAIN YESTERDAY THE ISSUE IS NOT DEAD SHE SAID IN ADDITION TO THE INCOMETAX INCREASES ON INDIVIDUALS AND THE FUELS TAX INCREASE THE RATE FOR CORPORATIONS WITH MORE THAN 10 MILLION IN TAXABLE INCOME WOULD RISE TO 35 FROM 34 ABOUT 13 OF THE HIGHESTINCOME SOCIAL SECURITY RECIPIENTS WOULD PAY TAXES ON A LARGER PORTION OF THEIR BENEFITS AND THE AFFLUENT WOULD PAY THE MEDICARE PAYROLL TAX ON THEIR FULL INCOME CURRENTLY THE TAX APPLIES UP TO 135000 OF INCOME THE MEASURE ALSO WOULD CURB A NUMBER OF BUSINESSRELATED TAX DEDUCTIONS BUT IT WOULD CREATE OR EXPAND A NUMBER OF BUSINESS TAX INCENTIVES FROM SMALL BUSINESSES' EQUIPMENT PURCHASED DURING THE YEAR FOR REAL ESTATE FOR HEAVY MANUFACTURERS THAT PAY THE ALTERNATIVE MINIMUM TAX AND FOR INVESTORS IN CERTAIN SMALL STARTUP BUSINESSES 9308060026 930806 WHAT'S NEWS BUSINESS AND FINANCE THE HOUSE PASSED CLINTON'S 496 BILLION DEFICITREDUCTION PACKAGE BY TWO VOTES IN A HARDWON FIGHT THAT WAS IN SUSPENSE UNTIL THE VERY END THE SHARPLY DIVIDED SENATE VOTES TODAY AND CLINTON AND DEMOCRATIC LEADERS HOPE THE HOUSE VICTORY WILL PROVIDE THE NEEDED MOMENTUM KODAK IS EXPECTED TO ANNOUNCE TODAY THAT ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER KAY WHITMORE WILL RETIRE BY YEAR'S END ACCORDING TO INDIVIDUALS CLOSE TO THE COMPANY KODAK'S SEARCH FOR A SUCCESSOR IS EXPECTED TO EXTEND BEYOND THE CURRENT MANAGEMENT GOLD FUTURES PLUMMETED NEARLY 6 IN THE BIGGEST SINGLEDAY ROUT IN PRECIOUSMETALS MARKETS SINCE 1991 PLATINUM AND SILVER PRICES ALSO SANK ARTHUR ANDERSEN PAID THRIFT REGULATORS 65 MILLION TO SETTLE CHARGES OF NEGLIGENCE IN AUDITS OF FAILED THRIFTS ANDERSEN SAID THE SETTLEMENT WILL BE LARGELY COVERED BY ITS INSURANCE TURNER BROADCASTING IS NEGOTIATING TO BUY INDEPENDENT MOTIONPICTURE PRODUCERS NEW LINE CINEMA AND CASTLE ROCK ENTERTAINMENT TURNER MAY FACE OPPOSITION FROM TIME WARNER A BIG TURNER BROADCASTING SHAREHOLDER WHICH ALREADY HAS A MOVIE STUDIO BIG RETAILERS REPORTED MIXED SALES RESULTS FOR LAST MONTH AS CONSUMERS CONTINUED TO SPEND SELECTIVELY CHAINS WITH HEAVY DISCOUNTS GENERALLY OUTPERFORMED OTHERS IN GETTING SHOPPERS FACTORY ORDERS JUMPED 26 IN JUNE THE FIRST RISE IN FOUR MONTHS BUT ANALYSTS ARE STILL WARY ABOUT THE HEALTH OF THE MANUFACTURING SECTOR THE FDA BANNED WR GRACE FROM IMPORTING TO THE US ITS WIDELY USED KIDNEYDIALYSIS PRODUCTS CITING FAULTY MANUFACTURING AND QUALITYCONTROL AT PLANTS IN IRELAND AND MEXICO THE DEPARTMENT OF JUSTICE IS INVESTIGATING WHETHER TWO FORMER OFFICIALS OF ALLIED PRODUCTS MADE ILLEGAL PAYOFFS TO OBTAIN BUSINESS IN RUSSIA ESTIMATES FOR WORLD PETROLEUM DEMAND FOR 1993 WERE LOWERED AGAIN BUT SOME ANALYSTS SAY PRICES COULD STRENGTHEN IN THE FOURTH QUARTER BECAUSE THE NEED FOR OPEC OIL REMAINS ABOVE OPEC'S OUTPUT LEVELS MOST BUSINESSES SLOWED THEIR BILL PAYING A SURVEY INDICATED SIGNALING THAT MANY COMPANIES ARE SKITTISH ABOUT THE ECONOMIC RECOVERY SOME MAJOR PROCESSORS OF CANNED AND FROZEN FOODS ARE RAISING PRICES BECAUSE MIDWEST FLOODS AND SOUTHEAST DROUGHTS CAUSED BIGGER REDUCTIONS IN PLANTING THAN FARMERS PLANNED THE US IS CONSIDERING PROVIDING MOST OF THE CAPITAL FOR A PROPOSED USMEXICO DEVELOPMENT BANK TO PAY FOR AN ENVIRONMENTAL CLEANUP ALONG THE COUNTRIES' BORDER EVEN THOUGH MOST OF THE PROJECTS WOULD BE IN MEXICO MCI AND BRITISH TELECOM MOVED CLOSER TO LAUNCHING A JOINT VENTURE IN INTERNATIONAL TELECOMMUNICATIONS BUT A BT OFFICIAL SAID THE VENTURE'S TECHNICAL PROBLEMS MAY TAKE YEARS TO FIX THE TWO COMPANIES MUST COPE WITH THE INCOMPATIBILITY OF THE PHONE EQUIPMENT USED IN DIFFERENT COUNTRIES MERCK SAID US SALES OF PRODUCTS LICENSED FROM AB ASTRA RECENTLY REACHED A LEVEL THAT TRIGGERS AN AGREEMENT TO FORM A JOINT VENTURE WITH THE SWEDISH PHARMACEUTICAL FIRM BONDS LEHMAN BROTHERS TREASURY INDEX 538862 UP 2040 COMMODITIES OIL 1757 A BARREL OFF 23 CENTS DOW JONES FUTURES INDEX 12993 OFF 225 SPOT INDEX 12503 OFF 110 DOLLAR 10400 YEN OFF 088 17105 MARKS UP 00015 9308060025 930806 BUSINESS BRIEF IPALCO ENTERPRISES INC FIRM'S BID FOR PSI RESOURCES TO BE RAISED TO 28 A SHARE IPALCO ENTERPRISES INC INDIANAPOLIS SAID IT WILL RAISE THE PRICE OF ITS UNSOLICITED TENDER OFFER TO BUY PSI RESOURCES INC TO 28 A SHARE OR NEARLY 16 BILLION FROM 2650 A SHARE OR ALMOST 15 BILLION IN ADDITION THE COMPANY SAID IT FILED A PETITION WITH THE INDIANA UTILITY REGULATORY COMMISSION REQUESTING APPROVAL OF ITS PLANNED ACQUISITION OF THE PLAINFIELD INDBASED COMPANY PSI ROSE 125 CENTS TO 24125 A SHARE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY PSI HAS BEEN TRYING TO FIGHT OFF IPALCO SINCE THE HOSTILE TENDER OFFER WAS LAUNCHED IN APRIL PSI INSTEAD HOPES TO MERGE WITH CINCINNATI GAS & ELECTRIC CO AND FORM AN OHIOBASED COMPANY KNOWN AS CINERGY UNDER REVISED TERMS IPALCO SAID IT WILL OFFER TO EXCHANGE EITHER 07492 SHARE OF ITS SHARES OR 28 IN CASH FOR EACH OF PSI'S ABOUT 56 MILLION SHARES OUTSTANDING 9308060024 930806 HEARD ON THE STREET FOREIGN BUYERS ARE UNWELCOME AT THE STATION AS GIANT JAPANESE RAILWAY OFFERING ROLLS IN BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO SO YOU THINK THE US NEW ISSUES MARKET CAN BE UNFAIR WITH SMALL INVESTORS SHUT OUT OF THE BEST DEALS CHECK OUT HOW THEY DO IT IN JAPAN THE TOKYO STOCK MARKET'S HOTTEST NEW ISSUE IS EAST JAPAN RAILWAY KNOWN AS JR EAST IT IS THE COUNTRY'S FIRST BLOCKBUSTER PUBLIC OFFERING IN YEARS AND IF IT FAILS THE WHOLE TOKYO MARKET MAY CONTINUE TO LANGUISH INTO 1994 BUT DESPITE THE IMPORTANCE OF ATTRACTING BUYERS THE JAPANESE ARE DOING ALL THEY CAN TO MAKE IT TOUGH FOR GLOBAL INVESTORS SUCH AS US MUTUAL FUNDS TO GET IN ON THE DEAL THERE ARE NO LAWS THAT BAR FOREIGN INVESTORS BUT EVERYTHING ABOUT THE HANDLING OF THE ISSUE SEEMS DESIGNED TO KEEP FOREIGN INVESTORS UNINFORMED OR COMPLETELY OUT OF THE BIDDING IF A FOREIGN SECURITIES ANALYST WANTS TO WRITE ABOUT JR EAST THE JAPAN SECURITIES DEALERS ASSOCIATION THE INDUSTRY GROUP REGULATING THE SALE HAS DECREED THAT IT MUST FIRST APPROVE A JAPANESE TRANSLATION OF THE REPORT THAT HAS DISCOURAGED ANALYSTS FROM WRITING ABOUT THE COMPANY NOR WILL JR EAST PROVIDE AN ENGLISH TRANSLATION OF ITS PROSPECTUS EVEN THOUGH TRANSLATIONS ARE COMMON ELSEWHERE WE'RE JUST FOLLOWING CUSTOMS SAYS HIROSHI OGINO SPOKESMAN FOR JR EAST WE DISCUSSED MAKING AN ENGLISH VERSION BUT THERE WAS OUTSIDE PRESSURE AGAINST IT SO WE DECIDED TO PUBLISH ONLY IN JAPANESE HE WOULDN'T SAY WHERE THAT PRESSURE CAME FROM MEANWHILE INVESTORS EVEN JAPANESE ONES CAN'T GET HELP FROM A BROKER IN SETTING THEIR BIDS THAT'S BECAUSE JAPANESE LAW BARS ALL BROKERS FROM RECOMMENDING HOW MUCH TO PAY FOR SHARES BEFORE THEY ARE AUCTIONED YET BROKERS SAY SOME SECURITIES FIRMS HAVE LEAKED INTERNAL PRICE MEMOS TO CHOICE CLIENTS I CAN'T SAY WHETHER TO BUY OR SELL LAMENTS LAURENT DEL GRANDE WHO LOOKS AT JR EAST FOR KLEINWORT BENSON INTERNATIONAL INC I CAN TELL YOU THE CHARACTERISTICS OF THE COMPANY BUT I CAN'T TELL YOU WHAT TO PAY BEYOND THESE HURDLES ALL BIDS FOR JR EAST MUST BE MADE THROUGH A JAPANESE BANK OR SECURITIES COMPANY THAT'S BAD NEWS FOR FOREIGNERS BECAUSE MANY JAPANESE INSTITUTIONS ARE FINDING REASONS NOT TO TAKE THEIR BIDS BY SHUTTING OUT FOREIGNERS FROM THE OFFERING THE JAPANESE ARE ALIENATING MANY FOREIGN INVESTORS WHOSE BUYING HAS HELPED BUOY TOKYO SHARE PRICES FOR MUCH OF THE PAST YEAR THIS IS THE LATEST EXAMPLE OF A FAMILIAR COMPLAINT AMONG FOREIGNERS TRYING TO CRACK JAPANESE MARKETS COLLUSIVE LOCAL PRACTICES KEEP FOREIGNERS OUT THOUGH FOREIGN INVESTORS HAVE BEEN A PILLAR OF THIS YEAR'S MARKET RALLY JAPANESE COMPANIES AND BROKERS STILL VIEW OUTSIDERS WITH SUSPICION AND HOSTILITY JR EAST A HUGE GOVERNMENTOWNED RAILROAD COMPANY IS ONE OF THE BIGGEST PRIVATIZATIONS ON RECORD ANALYSTS SAY THE TWO MILLION SHARES JR EAST HOPES TO SELL COULD COMMAND 300000 YEN 2861 APIECE WHEN PUBLIC TRADING BEGINS OCT 26 GIVING THE SALE A VALUE OF 572 BILLION THE AUCTION OF THE SHARES TO FINANCIAL INSTITUTIONS BEGINS TODAY AND THE INSTITUTIONS WILL GET THEIR STOCK AUG 26 THE INITIAL SELLING PRICE TO THE PUBLIC WILL BE SET ON AUG 30 IT'S HOPED THAT THE SALE OF JR EAST WILL GET JAPANESE SMALL INVESTORS EXCITED ABOUT THEIR MARKET WHICH HAS BEEN PLAGUED BY LOW TRADING VOLUME FOR TWO YEARS IF ACTIVITY PICKS UP ALREADY PUBLIC JAPANESE COMPANIES MAY AGAIN BE ABLE TO ISSUE SHARES SOMETHING THAT WAS BANNED THREE YEARS AGO TO PREVENT PRICES OF EXISTING STOCK FROM WEAKENING FURTHER SO WHY KEEP FOREIGNERS OFF SOME JAPANESE BROKERS SAY THE SECURITIES ASSOCIATION IS TRYING TO PROTECT SMALLER JAPANESE BROKERAGE FIRMS THE SMALL FIRMS HOPE TO SELL AS MANY SHARES AS POSSIBLE BUT THEY DON'T HAVE INTERNATIONAL CLIENTS SO ALL THEIR JR EAST SHARES GO TO JAPANESE BUYERS THE ASSOCIATION DENIES THIS THE INDUSTRY ASSOCIATION BLAMES JR EAST THE STOCK SALE WILL TAKE PLACE IN JAPAN AND THEREFORE JR EAST WANTS ITS INFORMATION ONLY IN JAPANESE SAYS MUTSUMI MASUDA HEAD OF THE ADMINISTRATIVE SECTION AT THE SECURITIES ASSOCIATION COMPANIES BEING PRIVATIZED IN OTHER COUNTRIES HAVE ALLOWED TRANSLATED INFORMATION MR MASUDA DEFLECTS SUGGESTIONS THAT JR EAST IS KEEPING OUT FOREIGNERS BUT ADMITS IT WILL BE A BIT OF A PAIN FOR THEM TO APPLY BECAUSE OF THE REGULATORY THICKET IT'S ENTIRELY NARROWMINDED SAYS A MANAGER AT A FOREIGN BROKERAGE FIRM THAT'S STAYING AWAY FROM JR EAST THERE'S NO OTHER WAY OF LOOKING AT IT 9308060023 930806 REVIEW & OUTLOOK EDITORIAL ASIDES ONE HONEST MAN THE COMPETITIVE ENTERPRISE INSTITUTE HAS FOUND THAT 160 DEMOCRATS IN THE HOUSE OF REPRESENTATIVES SUPPORTED FREEMARKET POLICIES LESS OFTEN DURING THE LAST SESSION THAN THE BODY'S ONLY AVOWED SOCIALIST BERNARD SANDERS OF VERMONT ON A SCALE UP TO 100 MAJORITY LEADER RICHARD GEPHARDT SCORED A 3 AND WHIP DAVID BONIOR MANAGED A 4 MR SANDERS HAD A 19 9308060022 930806 WHO'S NEWS TIME WARNER UNIT PICKS EXEMPLOYEE TO FILL DROZ'S POST BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HENRY DROZ THE ARCHITECT OF TIME WARNER INC'S SUCCESSFUL AND MUCH IMITATEDMUSICDISTRIBUTION OPERATIONS WILL RETIRE AT THE END OF THE YEAR THE COMPANY SAID HE WILL BE SUCCEEDED BY DAVID MOUNT 50 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OF LIVE ENTERTAINMENT INC A LOS ANGELESBASED ENTERTAINMENT AND RETAIL CONCERN MR MOUNT WHO HAD HELD SALES POSITIONS EARLIER IN HIS CAREER AT WARNER/ELEKTRA/ATLANTIC CORP THE US SALES AND DISTRIBUTION DIVISION OF WARNER MUSIC GROUP WILL REJOIN WEA AS COPRESIDENT AND CHIEF OPERATING OFFICER IN SEPTEMBER HE WILL BECOME PRESIDENT AND CHIEF EXECUTIVE WHEN MR DROZ 66 YEARS OLD RETIRES DURING HIS 16YEAR TENURE AS PRESIDENT OF WEA MR DROZ MOVED DISTRIBUTION FROM A WHOLESALE TRADE INTO ONE THAT BECAME A DIRECT SELLING OPERATION SAID ROBERT J MORGADO CHAIRMAN AND CHIEF EXECUTIVE OF WARNER MUSIC GROUP THE DISTRIBUTION ARM HAS SEVEN REGIONAL BRANCH OFFICES MORE THAN 1000 EMPLOYEES AND REVENUE THOUGHT TO TOP 1 BILLION IN ALL MR DROZ CREATED THE MODERN WHEEL FOR US MR MORGADO SAID BY INTRODUCING A SYSTEM OF BRANCHES THAT BROUGHT THE DISTRIBUTION OF PRERECORDED ENTERTAINMENT CLOSER TO CUSTOMERS MR DROZ WAS ABLE TO REDUCE SOME OF THE RISK OF A BUSINESS WHOSE FORTUNES ARE TIED TO RAPIDLY SHIFTING CONSUMER TASTES THE SYSTEM OF BRANCHES WHICH HAS BEEN IMITATED BY WEA'S COMPETITORS GAVE US AN ASTUTE KNOWLEDGE OF THE MARKETPLACE AND ASSURED QUICK MOVEMENT OF PRODUCTS MR MORGADO SAID MR MOUNT DURING HIS FIVEYEAR TENURE AT LIVE ENTERTAINMENT HELPED RESTRUCTURE THE COMPANY'S DEBT AND ALSO MANAGED VARIOUS DIVISIONS INCLUDING THE STRAWBERRIES/WAXIE MAXIES AND HOME VIDEO OPERATIONS ACCORDING TO WARNER MUSIC GROUP LIVE ENTERTAINMENT SAID IT WOULD SEARCH FOR A SUCCESSOR TO MR MOUNT WEA DISTRIBUTES PRODUCTS TO RETAIL AND WHOLESALE OUTLETS ON BEHALF OF WARNER BROS RECORDS ELEKTRA ENTERTAINMENT ATLANTIC RECORDING GROUP LIVE VIDEO AND CAPITAL CITIES/ABC VIDEO AMONG OTHERS 9308060021 930806 BUSINESS BRIEF LOMAS FINANCIAL TO SEEK EXPANSION OF BOARD TO INCLUDE SHAREHOLDER GROUP DALLAS LOMAS FINANCIAL CORP SAID IT WILL SEEK TO EXPAND ITS BOARD TO INCLUDE FOUR REPRESENTATIVES OF THE COMPANY'S LARGEST SHAREHOLDER GROUP JESS HAY CHAIRMAN OF THE MORTGAGESERVICES COMPANY WHICH EMERGED FROM BANKRUPTCYCOURT PROTECTION IN JANUARY DESCRIBED THE INVESTOR GROUP AS A LONGTERM AND CONSTRUCTIVE INVESTOR BUT ONE ANALYST SAID THE GROUP WAS LOOKING TO PROTECT ITS 189 STAKE IN LOMAS THEY ARE CLEARLY NOT HAPPY WITH THE PERFORMANCE OF THE STOCK SAID STEVEN EISMAN AN ANALYST WITH OPPENHEIMER & CO IN NEW YORK THERE IS NO ISSUE IN THE INDUSTRY THAT LOMAS'S REPUTATION IS POOR LOMAS SHARES CLOSED YESTERDAY AT 9125 UP 125 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING THE COMPANY SAID IT ENTERED INTO AN AGREEMENT WITH THE GROUP TO NAME MARK M FELDMAN PRESIDENT OF COLD SPRING MANAGEMENT A GREENWICH CONN INVESTMENT FIRM TO AN EXISTING POST ON THE BOARD TO NOMINATE THREE OTHERS DESIGNATED BY THE GROUP AND TO SOLICIT STOCKHOLDER APPROVAL AT ITS NOV 2 ANNUAL MEETING TO INCREASE THE SIZE OF THE BOARD TO 17 DIRECTORS FROM 14 THE OTHER NOMINEES ARE PAUL WOLANSKY A MANAGING DIRECTOR AT COLD SPRING DAVID E SHAW CHAIRMAN OF DE SHAW A NEW YORK FINANCIAL FIRM AND REID NAGLE PRESIDENT OF SNL SECURITIES IN CHARLOTTESVILLE VA MR FELDMAN WHOSE GROUP ALSO INCLUDES PALOMA PARTNERS AN INVESTMENT PARTNERSHIP HEADED BY MONEY MANAGER DONALD SUSSMAN SAID THIS WAS JUST THE FIRST OPPORTUNITY FOR THE GROUP TO GAIN REPRESENTATION ON THE THE BOARD AND THAT THE GROUP HAS A GOOD WORKING RELATIONSHIP WITH LOMAS MANAGEMENT WE ARE VERY FRIENDLY WITH MANAGEMENT HE SAID IT'S A NONEVENT HE SAID THAT THE GROUP CONTINUES TO BELIEVE THAT LOMAS FINANCIAL IS UNDERVALUED AND HAS TREMENDOUS POTENTIAL 9308060020 930806 UNICO AMERICAN CORP EXPECTS TO POST PROFIT FOR FISCAL 1ST QUARTER WOODLAND HILLS CALIF UNICO AMERICAN CORP EXPECTS TO POST NET INCOME FOR THE FISCAL FIRST QUARTER ENDED JUNE 30 OF BETWEEN 830000 AND 890000 OR 14 CENTS AND 15 CENTS A SHARE LESTER AARON CHIEF FINANCIAL OFFICER SAID THAT COMPARES WITH A YEAREARLIER NET LOSS OF 86 MILLION OR 153 A SHARE WHEN THE COMPANY'S CRUSADER INSURANCE CO UNIT WAS HIT WITH 215 MILLION IN CLAIMS STEMMING FROM THE LOS ANGELES RIOTS OFFSET BY 56 MILLION OF REINSURANCE AND A TAX CREDIT OF 54 MILLION FIRSTQUARTER REVENUE INCREASED TO NEARLY 72 MILLION FROM THE YEAREARLIER 62 MILLION WHICH HAS BEEN RESTATED FOR AN ACCOUNTING CHANGE MR AARON SAID IN AN INTERVIEW CRUSADER'S GROSS WRITTEN PREMIUMS FOR THE FIRST QUARTER WERE NEARLY 91 MILLION COMPARED WITH 57 MILLION A YEAR EARLIER AND 72 MILLION IN THE QUARTER ENDED MARCH 31 THE TURNAROUND HAS COME FROM MANY AREAS AND ONE OF THEM IS MARKETING ERWIN CHELDIN UNICO'S CHAIRMAN AND PRESIDENT SAID PREMIUM GROWTH HAS ALSO BEEN PROPELLED BY THE EXIT OF SEVERAL COMPETITORS FROM THE MARKET PARTICULARLY SINCE THE CALIFORNIA INSURANCE DEPARTMENT SHUT DOWN NEARLY 250 UNLICENSED INSURERS EARLIER THIS YEAR HE NOTED SINCE LAST YEAR'S RIOTS THE COMPANY HAS BEEN REDUCING ITS COVERAGE OF SMALL BUSINESSES IN INNERCITY LOS ANGELES ABOUT 20 OF THE COMPANY'S POLICYHOLDERS HAD BEEN LOCATED IN INNERCITY AREAS IN SOUTHERN CALIFORNIA BUT THE INSURER HAS SINCE REDUCED THAT PERCENTAGE BY ABOUT 40 AND HOPES TO CUT IT BY A TOTAL OF 75 CARY CHELDIN UNICO'S EXECUTIVE VICE PRESIDENT AND SON OF ERWIN CHELDIN SAID AS A RESULT OF THE RIOTS WE RECOGNIZED THAT IT'S NOT POSSIBLE TO UNDERWRITE SUCH A LARGE PERCENTAGE OF THE CITY AT A PROFIT HE SAID OFFSETTING THE SHIFT FROM THE INNERCITY BUSINESS UNICO IS LOOKING TO EXPAND TO OTHER STATES IN THE PAST YEAR THE COMPANY HAS MOVED INTO WASHINGTON AND OREGON AND IT EXPECTS TO BEGIN WRITING POLICIES IN ARIZONA AND NEVADA THIS YEAR CARY CHELDIN SAID WITHIN THE NEXT THREE YEARS UNICO HOPES TO EXPAND TO DENVER ATLANTA ST LOUIS AND CHICAGO HE ADDED 9308060019 930806 NEVADA POWER JOINS LOS ANGELES IN PROJECT TO SHIFT ELECTRICITY NEVADA POWER CO AND THE LOS ANGELES DEPARTMENT OF WATER AND POWER SAID THEY PLAN TO JOINTLY BUILD A 121 MILLION TRANSMISSION LINE SYSTEM THAT WOULD FACILITATE SEASONAL POWER EXCHANGES BETWEEN ELECTRIC UTILITIES IN A DOZEN WESTERN STATES THE PROJECT WOULD INVOLVE TWO SIDEBYSIDE OVERHEAD POWER LINES RUNNING 53 MILES FROM AN EXISTNG SUBSTATION ABOUT 25 MILES NORTHEAST OF LAS VEGAS TO A PROPOSED FACILITY SOUTH OF THE GAMBLING CENTER IT WOULD BE A BRIDGE SUFFICIENT TO HANDLE ALL POWER TRAFFIC GOING NORTH AND SOUTH IN THE WESTERN REGION OF THE US SAID EDISON ELIZEH NEVADA POWER'S MANAGER OF TRANSMISSION PLANNING AND CONTRACTS THE PROJECT IS DESIGNED TO ENHANCE UTILITIES' ABILITY TO TRANSFER POWER AS DEMAND PEAKS IN THE NORTH DURING THE COLD WINTER MONTHS AND IN THE SOUTH WHEN HOT WEATHER SPURS ELECTRICITY CONSUMPTION FOR AIR CONDITIONERS SUCH POWER EXCHANGES REDUCE UTILITIES' NEED TO BUILD COSTLY NEW GENERATING POWER DENNIS WHITNEY MANAGER OF THE WATER AND POWER DEPARTMENT'S CONSERVATION AND PLANNING DIVISION SAID THE NEW NORTHSOUTH TRANSMISSION LINES CONNECTING IDAHO UTAH NEVADA ARIZONA AND CALIFORNIA WOULD REQUIRE CONGRESSIONAL APPROVAL TO PASS THROUGH THE SUNRISE MOUNTAIN FEDERAL WILDERNESS STUDY AREA IN SOUTHERN NEVADA NEVADA POWER AND THE DEPARTMENT OF WATER AND POWER SAID THEY HAVE A MEMORANDUM OF UNDERSTANDING THAT MAKES THEM EQUAL PARTNERS IN THE PROJECT EACH HAS THE RIGHT TO SELL ALL OR A PORTION OF ITS INTEREST EVENTUALLY MORE PARTICIPANTS INCLUDING OTHER UTILITIES AND POSSIBLY INDEPENDENT POWER PRODUCERS MAY JOIN THE PROJECT BESIDES CONGRESSIONAL APPROVAL THE PROJECT MUST CLEAR VARIOUS REGULATORY HURDLES NEVADA POWER IS BASED IN LAS VEGAS THE LOS ANGELES DEPARTMENT OF WATER AND POWER IS A MUNICIPAL UTILITY 9308060018 930806 INTERNATIONAL UK'S VIRGIN GROUP SET TO DEFY FRENCH BLUE LAW PARIS NEVER ON SUNDAY A STRANGE ALLIANCE OF FRENCH TRADE UNIONISTS SMALL SHOPKEEPERS MAGISTRATES AND EVEN CLERICS IS FIGHTING BRITAIN'S VIRGIN GROUP LTD'S EFFORT TO KEEP ITS GIANT CHAMPS ELYSEES MUSIC STORE OPEN ON SUNDAYS AT A TIME WHEN FRENCH UNEMPLOYMENT IS PUSHING CLOSE TO 12 CONSUMER SPENDING IS DOWN AND PRIME MINISTER EDOUARD BALLADUR IS EXHORTING FRENCH CITIZENS TO GO OUT AND SPEND VIRGIN HAS BEEN TOLD TO STOP TRADING ON SUNDAYS CLAIMING THAT SUNDAY CLOSINGS WOULD CUT ITS WEEKLY REVENUE ONEFIFTH AND FORCE IT TO LAY OFF SOME EMPLOYEES VIRGIN IS BATTLING BACK VIRGIN'S CHAIRMAN RICHARD BRANSON ANNOUNCED THAT IF THE GOVERNMENT DOESN'T EXEMPT VIRGIN FROM FRANCE'S SUNDAY TRADING LAWS THE COMPANY WILL FREEZE ITS PLANS TO OPEN 25 NEW SHOPS IN FRANCE OVER THE NEXT FIVE YEARS THAT WOULD EMPLOY 1000 PEOPLE VIRGIN IS APPEALING A COURT ORDER IMPOSING A FOURMILLION FRANC 674480 FINE FOR ANY SUNDAY OPENING WE'RE GOING TO STAY OPEN THIS SUNDAY BUT WE'RE SWALLOWING DEEPLY BECAUSE IT'LL BE VERY EXPENSIVE IF WE LOSE THE APPEAL MR BRANSON SAID IN A TELEPHONE INTERVIEW LAST NIGHT FROM HIS HOME IN OXFORDSHIRE ENGLAND 9308060017 930806 INTERNATIONAL WORLD ECONOMY KUWAIT'S OFFER OF OLD BOEINGS TO SYRIA PUTS US EXPORT CONTROLS TO THE TEST BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IT SEEMED LIKE A PERFECT MATCH SYRIA WITH A SICK ECONOMY BUT MANY DAZZLING SCENIC AND HISTORIC SITES HOPES MORE TOURISM WILL BRING IN SOME EXTRA HARD CURRENCY BUT IT NEEDS BETTER AIRCRAFT TO BRING EUROPEANS ON HOLIDAY KUWAIT GRATEFUL FOR SYRIA'S SUPPORT IN THE WAR AGAINST IRAQ NO LONGER NEEDS SOME OLDER AIRLINERS SO IT WANTS TO DONATE THREE BOEING 727S TO DAMASCUS THE DONATION WOULD HELP NUDGE OPEN A CLOISTERED SYRIAN SOCIETY AND MIGHT EVEN PROMOTE THE CAUSE OF POLITICAL MODERATION AND WEALTHY KUWAIT GAINS GOODWILL FOR ITS GENEROSITY EVEN THOUGH THE USED PLANES WOULD HAVE LIMITED VALUE IN TODAY'S SOFT MARKET EVERYONE GAINS ENTER THE US STATE DEPARTMENT WHICH MAY SCUTTLE THE ARRANGEMENT IT COULD DO SO BY APPLYING UNILATERAL EXPORT CONTROLS WHICH OFTEN DON'T FULFILL US POLITICAL GOALS BUT CAN HINDER AMERICAN COMPANIES OVERSEAS WHILE INADVERTENTLY HELPING THEIR EUROPEAN AND JAPANESE RIVALS THESE ARE SEPARATE FROM EQUALLY CONTROVERSIAL MULTILATERAL RULES INTENDED TO KEEP NUCLEAR AND OTHER WEAPONS FROM NASTY REGIMES UNDER US LAW BECAUSE THESE AGING PLANES INCORPORATE MOREORLESS MODERN AMERICAN TECHNOLOGY NOT JUST ANYONE CAN HAVE THEM EVEN AS GIVEAWAYS FROM OTHERS AND BECAUSE SYRIA IS ON AN OFFICIAL AMERICAN LIST OF COUNTRIES WHICH SUPPORT INTERNATIONAL TERRORISTS IT IS AMONG THE INELIGIBLE UNLESS WASHINGTON SPECIFICALLY RULES OTHERWISE IN THIS CASE AFTER TWO MONTHS OF PONDERING THE STATE DEPARTMENT HASN'T MADE UP ITS MIND ALL OF WHICH LEAVES THE BOEING CO LIVID FOR ONE THING THE AEROSPACE GIANT COULD PROVIDE SPARE PARTS AND MAINTENANCE IF THE PLANES DO GO TO SYRIAN ARAB AIRLINES BEYOND THAT SYRIA WOULD LIKE TO BUY SOME NEW BOEINGS BUT PROBABLY WON'T IF THE KUWAITI PLAN FOUNDERS AND MORE CRUCIALLY BOEING'S ABILITY TO HOLD ITSELF OUT AS A RELIABLE SUPPLIER WOULD SUFFER THROUGHOUT THE MIDEAST IF THE GIFT IS BLOCKED POTENTIAL CUSTOMERS FROM THE GULF TO THE ATLANTIC MIGHT DECIDE IT IS TOO RISKY TO DEAL WITH ANY AMERICANS MCDONNELL DOUGLAS CORP AS WELL AND OPT FOR POLITICALLY SAFER RIVALS SUCH AS AIRBUS INDUSTRIE THE EUROPEAN AEROSPACE CONSORTIUM IT'S ANOTHER CASE OF A FOREIGN POLICY TOOL LOSING ITS INTENDED IMPACT COMPLAINS A BOEING SPOKESMAN OTHERS AGREE THEY SAY AMERICA'S LINGERING MAZE OF EXPORT CONTROLS ARE BASED ON TWO PILLARS FROM THE PAST ONE IS THE COLD WAR WHICH DIED WITH THE SOVIET UNION THE OTHER IS AMERICAN DOMINATION OF INDUSTRIAL TRADE AND TECHNOLOGY WHICH ENDED EVEN EARLIER THE CONTROLS WERE MEANT TO DENY MODERN TECHNOLOGY TO UNFRIENDLY NATIONS A CATEGORY EXPANDED TO INCLUDE SUCH MALEFACTORS AS THOSE WHO BACK TERRORISM BUT NOWADAYS THESE ARE NO LONGER DENIED TECHNOLOGY JUST BECAUSE WASHINGTON CLAMPS DOWN OTHER SUPPLIERS JUMP INTO THE BREACH EVEN IN THIS CASE IF KUWAIT CAN'T GIVE AWAY THE 727S IT WILL DONATE THREE USED AIRBUS JETS INSTEAD GIVING EUROPEANS THE INSIDE TRACK FOR FUTURE SALES THOUGH THESE A310S HAVE GENERAL ELECTRIC CO ENGINES THEIR TRANSFER WOULDN'T VIOLATE UNILATERAL AMERICAN RULES BECAUSE THE MOTORS ARE EIGHT YEARS OLD AND NOT CONSIDERED VALUABLE ENOUGH TO WORRY ABOUT HOWEVER DONATING THE MUCH OLDER 727S A DISCONTINUED MODEL NEEDS SPECIFIC US PERMISSION BECAUSE THEY ARE ENTIRELY AMERICAN SOME FIND THE LOGIC OF THIS ELUSIVE BUT LOGIC DOESN'T ALWAYS MATTER WHEN AMERICA APPLIES ITS UNILATERAL CONTROLS POLITICAL SYMBOLISM CAN BE MORE IMPORTANT AND TO BE FAIR SYRIA ISN'T A SIMPLE CASE THOUGH DAMASCUS RECENTLY HELPED REDUCE FIGHTING BETWEEN ISRAEL AND HEZBOLLAH GUERRILLAS IN LEBANON MANY CHARGE THAT SYRIA HAS HELPED ARM THE HEZBOLLAH SYRIA'S RELATIONS WITH KURDISH INSURGENTS AT WAR WITH TURKEY AN AMERICAN ALLY ARE AMBIGUOUS AT BEST JUST HOW FIRMLY THE HAFEZ ALASSAD REGIME HAS CUT OLD TIES TO ARAB TERRORISTS OR WANTS A BROADER MIDEAST PEACE REMAINS UNCLEAR A FAVORABLE US DECISION COULD SPARK A BACKLASH IN CONGRESS WHERE SOME MEMBERS WOULD OPPOSE ANY MOVE TOWARD GREATER DIPLOMATIC FLEXIBILITY TOWARD SYRIA PERHAPS STATE IS MERELY STALLING WHILE IT CONSIDERS REMOVING A BETTERBEHAVED SYRIA FROM THE PROSCRIBED LIST THE JETS COULD THEN BE A PAYOFF BUT A LONG DELAY OR REJECTION SEEMS CONTRARY TO US INTERESTS IF IT CAUSES SYRIA KUWAIT AND OTHERS TO FRET ANEW ABOUT THE WORTH OF AMERICAN FRIENDSHIP AND THE US AEROSPACE INDUSTRY WHICH HAS WORRIES ENOUGH IN THE GLOBAL FIGHT FOR MARKET SHARE WOULD FACE FRESH PROBLEMS IN THE RICH MIDEAST MARKET THAT'S WHY SOME EXPERTS FIND THE AIRCRAFT CASE YET ANOTHER REASON TO WELCOME THE CLINTON ADMINISTRATION'S DECISION TO EXAMINE ALL THESE CONTROLS AND SCRAP THOSE WHICH DON'T WORK 9308060016 930806 DIVIDEND NEWS ENGELHARD CORP ENGELHARD CORP ISELIN NJ THIS CHEMICAL AND MATERIALS MANAGEMENT CONCERN DECLARED A 3FOR2 SPLIT OF ITS COMMON STOCK ENGELHARD ALSO RAISED ITS QUARTERLY DIVIDEND TO 165 CENTS A SHARE FROM 15 CENTS A SHARE BASED ON 64 MILLION SHARES OUTSTANDING BEFORE THE SPLIT BOTH THE STOCK SPLIT AND THE DIVIDEND ARE PAYABLE SEPT 30 TO HOLDERS OF RECORD SEPT 14 9308060015 930806 LEISURE & ARTS ON SPORTS DIVING SILENT CAL' BY JAMES P STERBA LUGANVILLE VANUATU WHENEVER I FIND MYSELF HUNKERED DOWN AT THE OFFICE ASSIGNMENT OVERDUE EDITORS LOOKING GRIM AND COMPUTER SPEWING OUT CYBERMUSH INSTEAD OF PROSE I WANT NOTHING MORE THAN TO CHAIN MYSELF TO THE DESK LIKE A GOOD SCRIBE AND SLOG ON BUT THIS TIME MY CONSCIENCE WOULDN'T LET ME IT TOLD ME I FACED DEBILITATING GUILT UNLESS I DROPPED EVERYTHING AND GOT BELOW SEA LEVEL QUICK SO AS TO PROPERLY OBSERVE THE GOLDEN ANNIVERSARY OF THE BIRTH OF SCUBA DIVING JACQUES COUSTEAU AND EMILE GAGNON DIDN'T INVENT THE SELFCONTAINED UNDERWATER BREATHING APPARATUS 50 YEARS AGO FOR OFFICE RATS SUCH REASONING I FOUND IMPOSSIBLE TO IGNORE WHICH EXPLAINS HOW I FOUND MYSELF A FEW DAYS LATER TYING UP TO A MARKER BUOY ON THE EASTERN APPROACH TO LUGANVILLE HARBOR OFF THE ISLAND OF ESPIRITU SANTO DURING WORLD WAR II THIS WAS THE AMERICAN STAGING BASE FOR THE BATTLE OF GUADALCANAL IN THE SOLOMON ISLANDS TO THE NORTH IT WAS SO BIG THAT BOB HOPE CAME TO ENTERTAIN ELEANOR ROOSEVELT VISITED AND JAMES MICHENER PLOTTED SOUTH PACIFIC YARNS HERE WHILE IN UNIFORM WE FLEW FROM NEW YORK TO SYDNEY AND PORT VILA WHERE WE BOARDED THE DIVING VESSEL CORIOLIS FOR A REEFHOPPING CRUISE TO SANTO AND A FINAL 30 MINUTES THROUGH DRENCHING CHOP IN A ZODIAC TO THE BUOY WHERE WE SUITED UP AND CHATTED ABOUT SILENT CAL AND BLISS THESE ARE TWO CONCEPTS NOT USUALLY FOUND IN THE SAME CONVERSATION UNLESS YOU HAPPEN TO BE AROUND PEOPLE WHO ARE BENT SO TO SPEAK ON AVOCATING UNDER THE SEA TO THEM SILENT CAL REFERS TO THE WRECK NOT THE 30TH PRESIDENT WRECK SNOBS INSIST THAT THE 295FOOTLONG YONGALA WHICH WENT DOWN OFF AUSTRALIA'S CAPE BOWLING GREEN IN A 1911 CYCLONE WITH 120 PASSENGERS ABOARD IS TON FOR TON THE SINGLE BEST WRECK DIVE IN THE WORLD THEY'RE RIGHT RESTING IN A BARREN CHANNEL OF THE GREAT BARRIER REEF IN 98 FEET OF WATER IT BRISTLES WITH CORAL AND CREATURES HUMBLE TO HUMONGOUS THE BEST SUBMERGED HEAVYMETAL SMORGASBORD IS OF COURSE TO BE FOUND IN TRUK LAGOON IN MICRONESIA WHERE 60ODD SHIPS OF THE IMPERIAL JAPANESE NAVY HIT BOTTOM DURING A 30HOUR US ATTACK CALLED OPERATION HAILSTONE ON FEB 17 AND 18 1944 IT'S BEEN CALLED THE LARGEST NAVAL LOSS IN HISTORY EVEN THOUGH THE BIG WARSHIPS GOT AWAY ROUGHLY 200000 TONS OF NAVAL HARDWARETENDERS OILERS SUPPLY VESSELS MAKESHIFT HOSPITAL SHIPS AND PLANES NOW RESTS IN 40 FEET OF WATER ON DOWN RESPLENDENT WITH SOFT CORAL GARDENS SKULLS AND BONES UNEXPENDED BULLETS AND UNEXPLODED ARTILLERY SHELLS BUT RIGHT UP THERE ON EVERYBODY'S LIST OF THE GLOBE'S GREATEST WRECK DIVES IS THE SS PRESIDENT COOLIDGE A HUGE HOUSING PROJECT FOR UNDERSEA LIFE WITH DECKS AND HOLDS FESTOONED WITH CORAL AND SPONGES CRAWLING WITH COLORFUL SHRIMP AND CRABS AND TEEMING WITH FISH JACKS RAYS SHARKS EELS BARRACUDA BATFISH PUFFERS ANGELS AND LOTS OF OTHERS INCLUDING BORIS A MONSTER ABOUT WHICH MORE WILL BE SAID LATER THE 22000TON COOLIDGE IS ARGUABLY THE LARGEST VICTIM OF FRIENDLY FIRE IN THE HISTORY OF WAR IF YOU INCLUDE STEAMING INTO YOUR OWN MINEFIELD WHICH THE COOLIDGE DID AT APPROXIMATELY 930 AM ON OCT 26 1942 JUST MONTHS BEFORE COUSTEAU PUT ON GAGNON'S CRUDE VALVEANDHOSE DEVICE AND PRONOUNCED HIMSELF A MAN FISH BUILT FOR 8 MILLION AS A LUXURY LINER FOR THE SS DOLLAR LINES CHRISTENED BY MRS COOLIDGE IN 1931 THE SHIP WAS DESIGNED BEFORE TRANSPACIFIC AIR TRAVEL TO CARRY 1200 PASSENGERS ACROSS THE OCEAN IN 12 DAYS REFITTED FOR WAR THE COOLIDGE WAS ON THIS OCCASION FERRYING 5440 TROOPS MOST FROM THE 43RD INFANTRY DIVISION TO THE LUGANVILLE BUILDUP AFTER HITTING ONE MINE THE SHIP SURGING FULL ASTERN HIT ANOTHER AND THE CAPTAIN RAN IT TOWARD SHORE AND ORDERED EVERYONE OVERBOARD AT 1055 AM THE COOLIDGE SANK EITHER TWO OR FIVE MEN WENT DOWN WITH HER DEPENDING ON WHICH ACCOUNT YOU BELIEVE THE COOLIDGE IS LONGER THAN TWO FOOTBALL FIELDS 654 FEET AND IT RESTS ON A GENTLE SLOPE ITS BOW AT A DEPTH OF 70 FEET ITS STERN AT 240 FEET MAKING IT THE LARGEST SHIPWRECK IN THE WORLD ACCESSIBLE TO RECREATIONAL DIVERS THERE'S PLENTY TO SEE IN ITS SHALLOWER REACHES BUT TO SWIM DOWN THE STAIRCASE INTO ITS GRAND DINING SALOON YOU PASS A PORCELAIN SCULPTURE OF AN ELIZABETHAN LADY AND A UNICORN EMBEDDED OVER THE ENTRANCE AT 180 FEET TO SEE THE LADY AND EXPLORE THE SHIP'S DEEPER HOLDS AND DECKS REQUIRES CAREFUL TIME CALCULATION TO AVOID TOO MUCH NITROGEN BUILDUP IN BODILY TISSUES THE CAUSE OF THE CRIPPLING DISEASE CALLED THE BENDS AFTER THESE DEEP DIVES MUCH TIME SOMETIMES 30 MINUTES OR MOREMUST BE SPENT HANGING ON A LINE OR IN THE SHALLOWS NEAR SHORE AT 20 FEET AND 10 FEET AND EXPELLING EXCESS NITROGEN BEFORE SAFELY SURFACING IT'S THE PENALTY FOR GOING DEEP IN MOST PLACES BUT HERE THANKS TO A NEW ZEALANDER NAMED ALLAN POWER IT'S A PLEASURE MR POWER CAME HERE 24 YEARS AGO AND MORE OR LESS ADOPTED THE COOLIDGE EXPLORING IT PROTECTING IT AND GUIDING DIVERS THROUGH IT SINCE I FIRST DIVED THE COOLIDGE WITH MR POWER 10 YEARS AGO HE'S HELPED TURN IT INTO A NATIONAL PARK MEANING NOTHING NOT A SINGLE GAS MASK HELMET OR GUN CAN BE REMOVED AND HE'S BUILT HIS OWN CORAL GARDEN IN THE SHALLOWS FULL OF MARINE CREATURES AND FISH TO OCCUPY DIVERS WHILE THEY ARE DECOMPRESSING THIS GENERALLY IS WHERE BORIS TURNS UP BORIS IS A FISH IT WOULD BE EXAGGERATING TO SAY THAT THERE ARE PROBABLY ENTIRE PLANETS OUT THERE IN THE UNIVERSE THAT ARE SMALLER THAN BORIS IMAGINE THE BIGGEST LARGEMOUTH BASS YOU'VE EVER SEEN BLOW IT UP IN YOUR MIND TO THE SIZE OF SAY THE BIGGEST SOFA YOU'VE EVER SEEN AND ADD FINS THAT'S BORIS BORIS IS A GROUPER OR AS ANGLOPHILES SAY A GROPER AUSSIES INEXPLICABLY CALL THESE FISH POTATO COD AMERICANS CALL THEM JEWFISH BORIS WHO IS PROBABLY SIX FEET LONG AND WEIGHS SOMEWHERE BETWEEN 400 AND 600 POUNDS DOESN'T CARE HE WANTS FOOD AND MR POWER OBLIGES ON A REGULAR ENOUGH BASIS TO KEEP BORIS AROUND AS KIND OF LORD MAYOR OF THE COOLIDGE IF BORIS AND THE COOLIDGE GET BORING THERE ARE PLENTY OF CORAL REEFS AROUND TO EXPLORE AND JUST DOWN THE CHANNEL IS MILLION DOLLAR POINT WHERE THE AMERICANS PUSHED TONS AND TONS OF BULLDOZERS TRUCKS TRACTORS CRANES AND OTHER CONSTRUCTION AND WAR MATERIAL THEY COULDN'T TAKE HOME INTO THE SEA IF NONE OF THAT INTERESTS YOU YOU DESERVE THE OFFICE MR STERBA SPENDS HIS SURFACE TIME AS A SENIOR SPECIAL WRITER FOR THE JOURNAL IN NEW YORK 9308060014 930806 REVIEW & OUTLOOK EDITORIAL THE 43 PRESSURE COOKER THIS WEEK'S BUDGET BATTLE HAS LEFT MORE THAN THE USUAL AMOUNT OF BLOOD ON THE FLOOR WITH STEAM SPOUTING OUT OF EVERY RIVET IN THE BELTWAY PRESSURE COOKER THIS IS WHAT HAPPENS WHEN A PRESIDENT WITH A 43 MANDATE TRIES TO LEAD THE NATION IN A DIRECTION IT DOESN'T WANT TO GO AND INDEED A DIRECTION HE REPEATEDLY DENIED UNDER THE NEW DEMOCRAT LABEL HE DONNED DURING THE CAMPAIGN THIS IS STILL THE COUNTRY THAT GAVE RONALD REAGAN TWO LANDSLIDES THREE IF YOU COUNT GEORGE BUSH'S 1988 VICTORY AND HOWEVER MUDDY THE WATERS OF 1992 THE ONE MESSAGE THAT CAME THROUGH LOUD LAST NOVEMBER WAS THAT VOTERS DON'T TRUST WASHINGTON OR PARTICULARLY WANT MORE OF IT IN THEIR LIVES NEVERTHELESS MR CLINTON HAS OFFERED UP A WASHINGTONAGGRANDIZING AGENDA OF HIGHER TAXES AND NEW PROGRAMS AND THE SYSTEM IS COUGHING AND SPUTTERING TO ACCOMMODATE HIM IN THE MOST IMMEDIATE SENSE THIS SHOWS UP IN THE WEIRD POPPING NOISES COMING FROM INSIDE THE CONFERENCE COMMITTEE WHICH HAS TURNED INTO THE SACK OF ROME AS LEGISLATORS DRINK UP BEFORE FALLING ON THEIR SWORDS SENATOR MOYNIHAN FOR EXAMPLE HAS AWARDED NEW YORK A SPECIAL DEDUCTION TO SHORE UP THE STATE'S HOSPITAL SYSTEM IN EFFECT DIVERTING FEDERAL TAX DOLLARS FOR MARIO CUOMO'S USE AND TO GET THE BUDGET TOTALS TO ADD UP THE CONFEREES THREW UP THEIR HANDS AND MADE THE NEW INCOME TAXES RETROACTIVE WHILE ALSO GIVING FOLKS TWO YEARS TO PAY THUS THE DEMOCRATS HAVE SADDLED THEMSELVES WITH BLAME FOR A NEW TAX ON SAVINGS WHILE ALSO SETTING A TIMEBOMB THAT WILL KEEP BLOWING UP IN EVERY CONGRESSIONAL DISTRICT RIGHT THROUGH NEXT YEAR'S MIDTERM ELECTIONS NOT TOO SMART UNLESS YOU FIGURE YOU'RE DEAD TOMORROW ANYWAY WE'D ALSO POINT TO THE PRESSURES THAT ARE EVIDENTLY BUBBLING UP INSIDE THE ADMINISTRATION ONE OF THE WHITE HOUSE ECONOMISTS 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 RATHER THAN RELEASE OMB'S MANDATORY MIDSESSION BUDGET REVIEW THE WHITE HOUSE CHOSE SIMPLY TO IGNORE THE LAW AND OF COURSE NOBODY COULD MISS THE AUDIBLE GROANING OF A DEMOCRATIC CONGRESS BEING LUGGED UP A HILL AGAINST A HEADWIND OF PUBLIC OPINION HALF A MILLION PHONE CALLS POURED INTO THE CAPITOL YESTERDAY DURING THE LUNCH HOUR AND WE DOUBT IT WAS FOR PIZZA DELIVERY FROM THE BEGINNING THERE WASN'T EVEN A PRETENSE OF TRYING TO DRAW THE USUAL REPUBLICAN QUISLINGS INTO COMPLICITY WITH HIGHER TAXES PERHAPS THE MOST REMARKABLE THING ABOUT THE WHOLE EXERCISE IS THAT THIS WILL BE THE FIRST MAJOR PIECE OF LEGISLATION WITHIN MEMORY TO BE PASSED WITHOUT A SINGLE REPUBLICAN VOTE INDEED THE WHITE HOUSE HAS HAD TO WHEEDLE AND BEG FOR EACH DEMOCRATIC VOTE FALLING BACK WHENEVER NECESSARY ON FIRE AND BRIMSTONE ABOUT A PRESIDENTIAL MELTDOWN AND ANOTHER ETERNITY IN THE WILDERNESS NO DOUBT AL GORE WILL BE CALLED UPON TODAY TO BREAK THE GRIDLOCK BETWEEN DEMOCRATS AND DEMOCRATS YOU ACTUALLY HAVE TO SYMPATHIZE WITH A WHITE HOUSE STAFF THAT SUFFERED ITS SHARE OF EARLY MISADVENTURES AND SNAFUS PIDDLING AWAY MUCH OF THE PRESIDENT'S POLITICAL CAPITAL IN THE PROCESS IT CAN'T BE FUN TO HEAR THAT ON EVERY CLIFFHANGER VOTE HANGS THE PROSPECT OF ANOTHER FAILED DEMOCRATIC PRESIDENCY MR CLINTON HAS INVITED EXACTLY THAT KIND OF HYPERVENTILATING OF THE POLITICAL STAKES BY RUNNING SO FAR AHEAD AND WIDE OF HIS ELECTORAL MANDATE OF COURSE HE'S WELL WITHIN THE LETTER OF DEMOCRATIC PRACTICE TO TRY AND TEACH THE COUNTRY TO WANT WHAT HE'S GIVING YET WE SUSPECT MOST AMERICANS DON'T KNOW WHAT MR CLINTON REALLY BELIEVES EVEN TODAY THE BIGGEST IRONY OF ALL IS THAT MR CLINTON MIGHT HAVE BEEN MAY YET BE THE DIFFERENT KIND OF DEMOCRAT WHO REACHES BEYOND THE OLD DEMOCRATIC BASE AND DOES SOMETHING MORE THAN JUST TAX AND SPEND INDEED OUR OWN VIEW IS THAT MR CLINTON WOULD BE BETTER OFF LOSING IF HE WINS HE WON'T SUDDENLY HAVE EARNED A MANDATE AND GO FROM STRENGTH TO STRENGTH MORE LIKELY HE'LL JUST HAVE A HARDER JOB PERSUADING ANYBODY IN CONGRESS TO FALL ON THE GRENADE FOR HIM NEXT TIME IF HE SHOULD LOSE NO ONE WILL CHANGE THE LOCKS ON THE WHITE HOUSE DOOR OR ROLL UP HIS JOGGING TRACK AND HE'D BE FREE TO TRY LOOKING BEYOND HIS 43 TO SEE WHERE THE COUNTRY'S REAL CENTER OF GRAVITY LIES SEE RELATED LETTER LETTERS TO THE EDITOR MY LIPS WEREN'T SEALED WSJ AUG 12 1993 9308060014 YY93 MM08 9308060013 930806 FINANCING BUSINESS GENERAL PUBLIC UTILITIES CORP GENERAL PUBLIC UTILITIES CORP PARSIPPANY NJ THE METROPOLITAN EDISON CO UNIT OF THIS UTILITIES HOLDING COMPANY WILL REDEEM TWO SERIES OF CUMULATIVE PREFERRED STOCK HELD OF RECORD AUG 4 ALL SHARES OUTSTANDING OF THE 832 SERIES H STOCK WILL BE REDEEMED SEPT 9 AT A PRICE OF 10408 A SHARE PLUS ACCRUED DIVIDENDS ALL SHARES OUTSTANDING OF THE 832 SERIES J STOCK WILL BE REDEEMED SEPT 9 AT A PRICE OF 10354 A SHARE PLUS ACCRUED DIVIDENDS METROPOLITAN EDISON BASED IN READING PA SUPPLIES ELECTRICITY IN SOUTHEASTERN PENNSYLVANIA 9308060012 930806 TECHNOLOGY & HEALTH MERCK'S US SALES OF AB ASTRA DRUGS TRIGGER VENTURE BY ELYSE TANOUYE AND JYOTI THOTTAM STAFF REPORTERS OF THE WALL STREET JOURNAL WHITEHOUSE STATION NJ MERCK & CO SAID US SALES OF PRODUCTS LICENSED FROM AB ASTRA RECENTLY REACHED A LEVEL THAT TRIGGERS AN AGREEMENT TO FORM A JOINT VENTURE WITH THE SWEDISH PHARMACEUTICAL FIRM THREE ASTRA PRODUCTS HEART DRUGS TONOCARD AND PLENDIL AND ANTIULCER DRUG PRILOSEC ARE SOLD BY MERCK UNDER ASTRA/MERCK GROUP WHICH IS CONTAINED WHOLLY WITHIN MERCK UNDER A 1982 AGREEMENT MERCK WOULD FORM A SEPARATE BUSINESS TO SELL ASTRA PRODUCTS IF BY THE END OF 1993 US SALES OF THOSE DRUGS REACHED ABOUT 500 MILLION OVER A 12MONTH PERIOD SALES REACHED THAT POINT IN JULY ACCORDING TO MERCK ASTRA MUST DECIDE BY EARLY 1995 WHETHER TO PAY MERCK ABOUT A YEAR'S WORTH OF SALES TO BECOME A 50 OWNER OF THE NEWLY CREATED BUSINESS UNTIL IT MAKES THAT DECISION MERCK WILL CONTINUE TO OWN AND RUN ASTRA/MERCK GROUP WHICH IS HEADQUARTERED IN WAYNE PA THE UNIT HAS A 500PERSON SALES FORCE AND WILL EVENTUALLY EMPLOY ABOUT 900 PEOPLE HEMANT SHAH AN INDUSTRY CONSULTANT IN WARREN NJ SAYS ASTRA HAS MORE TO GAIN FROM THE PACT SINCE THE SWEDISH COMPANY IS NOT EQUIPPED TO TACKLE THE US MARKET ON ITS OWN P ROY VAGELOS MERCK'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER CONCEDES THAT THIS WAS THE INITIAL REASON BEHIND THE AGREEMENT BUT HE NOTES THAT MERCK WOULD ALSO RECEIVE ACCESS TO FUTURE ASTRA DRUGS A JOINT VENTURE WILL HAVE A SLIGHTLY NEGATIVE IMPACT ON MERCK'S EARNINGS IN THE NEAR TERM MR SHAH SAYS BUT THE LONG TERM IMPACT WILL BE POSITIVE ASTRA'S SUCCESSFUL ASTHMA LINE IS EXCLUDED FROM THE AGREEMENT BUT I WOULD NOT BE VERY SURPRISED IF ASTRA BEGINS TO ROLL THOSE DRUGS INTO THE JOINT VENTURE MR SHAH SAID UNDER THE AGREEMENT ASTRA/MERCK MAY ALSO LICENSE DRUGS FROM ASTRA AND MERCK AS WELL THEIR COMPETITORS I DON'T SEE THAT AS A PROBLEM DR VAGELOS SAID WE WOULD END UP WITH HALF THEIR PROFITS THROUGH ASTRA/MERCK BESIDES THE DRUGS BEING SOLD THE JOINT VENTURE WILL HAVE RIGHTS TO A SCHIZOPHRENIA DRUG ROXIAM CURRENTLY UNDER REVIEW BY THE FOOD AND DRUG ADMINISTRATION 9308060011 930806 DIVIDEND NEWS GTE CORP GTE CORP STAMFORD CONN SAID IT INCREASED ITS QUARTERLY DIVIDEND ON COMMON STOCK BY 33 TO 47 CENTS A SHARE FROM 455 CENTS A SHARE THE DIVIDEND IS PAYABLE OCT 1 TO SHAREHOLDERS OF RECORD AUG 23 GTE IS A TELECOMMUNICATIONS CONCERN 9308060010 930806 BUSINESS BRIEF ONE VALLEY BANCORP OF WEST VIRGINIA MOUNTAINEER BANKSHARES TO BE BOUGHT IN STOCK SWAP ONE VALLEY BANCORP OF WEST VIRGINIA INC CHARLESTON WVA SAID IT SIGNED A DEFINITIVE AGREEMENT TO BUY MOUNTAINEER BANKSHARES OF WVA INC IN A STOCK SWAP VALUED AT 126 MILLION THE MOVE WOULD MAKE ONE VALLEY THE BIGGEST BANK HOLDING COMPANY IN WEST VIRGINIA A TITLE THAT BANC ONE CORP TOOK OVER WHEN IT BOUGHT KEY CENTURION BANCSHARES LAST YEAR THE VALUE OF THE TRANSACTION IS BASED ON THE 29 CLOSING PRICE OF ONE VALLEY SHARES IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY MOUNTAINEER SHARES SOARED 575 OR 16 TO 4125 IN NATIONAL OVERTHECOUNTER TRADING 9308060009 930806 HECLA SEES WIDER LOSS IN 2ND QUARTER CITING LOWER PRODUCTION AT GOLD MINES BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL HECLA MINING CO EXPECTS TO POST A LOSS OF FIVE CENTS TO SEVEN CENTS A SHARE FOR THE SECOND QUARTER COMPARED WITH A LOSS OF FOUR CENTS A SHARE A YEAR EARLIER ACCORDING TO ARTHUR BROWN HECLA'S PRESIDENT CHAIRMAN AND CHIEF EXECUTIVE THE LOSS IS DUE TO LOWER GOLD PRODUCTION AND LOWER ZINC AND LEAD PRICES HE SAID BUT THE LOSS WAS NARROWER THAN THE COMPANY EXPECTED MR BROWN SAID BECAUSE GOLD PRICES IMPROVED THROUGH THE SECOND QUARTER ENDED JUNE 30 FOR THE YEAREARLIER QUARTER THE COEUR D'ALENE IDAHO MINING COMPANY HAD A NET LOSS OF ABOUT 12 MILLION ON SALES OF 292 MILLION IN THE LATEST QUARTER HECLA'S GOLD PRODUCTION FELL DUE TO THE DEPLETION OF TWO MINES AND LOWER ORE GRADES AT A THIRD MINE THE COMPANY'S 75OWNED CACTUS GOLD MINE IN CALIFORNIA IS IN ITS LAST YEAR OF PRODUCTION AND ITS YELLOW PINE MINE IN IDAHO HAS STOPPED PRODUCTION THE ORE GRADE MINED AT REPUBLIC IN WASHINGTON STATE WAS RICHER THAN NORMAL IN THE YEAREARLIER SECOND QUARTER AND FELL BACK TO NORMAL LEVELS IN 1993 MR BROWN SAID AS A RESULT SECONDQUARTER GOLD PRODUCTION DIPPED TO ABOUT 16500 OUNCES FROM ABOUT 25000 OUNCES FOR THE SIX MONTHS GOLD PRODUCTION FELL TO 32000 OUNCES FROM 55000 IN THE YEAREARLIER PERIOD LEAD AND ZINC PRICES DECLINED CAUSING KENNECOTT CORP TO SHUT DOWN OPERATIONS IN APRIL AT THE GREENS CREEK SILVER LEAD AND ZINC MINE IN ALASKA WHICH IS 30 HELD BY HECLA HECLA ALSO MINES SILVER LEAD AND ZINC AT LUCKY FRIDAY IN IDAHO THE COMPANY SAID ITS REALIZED GOLD PRICES FOR THE SECOND QUARTER ROSE 6 TO 360 AN OUNCE FROM 339 IN THE YEAREARLIER QUARTER SILVER PRICES ROSE TO 426 AN OUNCE FROM 405 THE COMPANY CUT ITS CASH COSTS OF PRODUCING GOLD TO 245 AN OUNCE FROM 269 AN OUNCE A YEAR EARLIER GENERAL AND ADMINISTRATIVE EXPENSES IN 1993 WILL BE ABOUT 6 MILLION COMPARED WITH ABOUT 14 MILLION TWO YEARS AGO IN PART DUE TO A 25 REDUCTION IN ADMINISTRATIVE PERSONNEL TO 60 PEOPLE MR BROWN SAID BY THE END OF THE SECOND QUARTER THE COMPANY REDUCED ITS DEBT TO ABOUT 47 MILLION FROM 79 MILLION AT THE BEGINNING OF THE QUARTER HE SAID HECLA RECEIVED ABOUT 110 MILLION FROM A 115 MILLION SALE OF 23 MILLION SHARES OF 7 CONVERTIBLE PREFERRED STOCK IN THE QUARTER AND SWAPPED MORE THAN 25 MILLION IN LIQUID YIELD OPTION NOTES FOR COMMON STOCK ABOUT 11 MILLION OF THE STOCK OFFERING PROCEEDS WERE USED TO REDUCE BANK DEBT WE WERE VERY LUCKY AND HIT THE TIMING EXACTLY RIGHT WITH THE SALE AND SWAP SAID MR BROWN THERE WAS A GREAT DEAL OF INTEREST IN GOLD AND GOLD INSTRUMENTS DURING THE QUARTER DUE TO THE RISE IN GOLD PRICES AND DECLINING YIELDS ON OTHER FIXEDRATE INVESTMENTS PROCEEDS FROM THE PREFERRED OFFERING ALSO WILL BE USED TO FINANCE THE COMPANY'S TWO NEW GOLD MINES GROUSE CREEK IN SOUTHERN IDAHO WILL REQUIRE 85 MILLION IN CAPITAL THE PROJECT WHICH HAS RECEIVED THE NECESSARY GOVERNMENT AND ENVIRONMENTAL PERMITS IS UNDER CONSTRUCTION AND SHOULD BEGIN PRODUCING IN LATE 1994 MR BROWN SAID IT WILL PRODUCE AN AVERAGE OF 100000 OUNCES OF GOLD OVER EIGHT YEARS FROM THE OPENPIT MINE AND MILLING OPERATION THE MINE HAS PROVEN RESERVES OF ABOUT 850000 OUNCES AT AN AVERAGE GRADE OF 0057 OUNCES PER TON AND SOME TERRITORY AROUND THE MINE HAS YET TO BE EXPLORED FOR RESERVES IN ADDITION THE COMPANY EXPECTS TO BEGIN PRODUCTION AT ITS LACHOYA GOLD MINE IN NORTHERN MEXICO 200 MILES SOUTH OF TUCSON BY THE END OF THIS YEAR THE OPENPIT OXIDE OPERATION WILL PRODUCE ABOUT 65000 OUNCES OF GOLD AND WILL REQUIRE ABOUT 10 MILLION IN ADDITIONAL CAPITAL THE PROJECT HAS 180000 OUNCES OF RESERVES AVERAGING ABOUT 004 OUNCES PER TON OF ORE THE COMPANY IS EXPLORING THE AREA AROUND THE MINE AND EXPECTS TO ADD RESERVES TO THE PROJECT THE ADDITION OF THE TWO MINES IS EXPECTED TO BOOST GOLD PRODUCTION TO 170000 OUNCES IN 1994 FROM AN ESTIMATED 70000 TO 75000 OUNCES THIS YEAR IN 1995 PRODUCTION SHOULD RISE TO 250000 OUNCES MR BROWN SAID IN 1992 HECLA RECEIVED ABOUT 42 OF ITS REVENUE FROM INDUSTRIAL MINERALS 31 FROM GOLD AND 27 FROM SILVER LEAD AND ZINC THE COMPANY'S INDUSTRIAL MINERALS BUSINESS WHICH INCLUDES CLAY KAOLIN AND FELDSPAR HAS GROWN THROUGH ACQUISITIONS OVER THE PAST COUPLE OF YEARS THE INDUSTRIAL MINERALS REVENUE ALSO HAS RISEN AS A PERCENTAGE OF THE COMPANY'S TOTAL REVENUE BECAUSE PRICES OF PRECIOUS METALS DIPPED IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE HECLA SHARES WERE QUOTED AT 12875 DOWN 1125 OR 8 9308060008 930806 SOLO SERVE SAMESTORE SALES SLIDE SAN ANTONIO TEXAS SOLO SERVE CORP SAID SAMESTORE SALES DROPPED 25 IN THE FOUR WEEKS ENDED SATURDAY THE OFFPRICE RETAILER SAID TOTAL SALES IN THE PERIOD INCREASED 195 TO 145 MILLION FROM 121 MILLION A YEAR EARLIER YEARTODATE SALES INCREASED 126 TO 808 MILLION FROM 717 MILLION SAMESTORE SALES YEARTODATE DROPPED 5 9308060007 930806 BUSINESS BRIEF QUAKER OATS REPORTS 10 DECLINE IN PROFIT FOR FISCAL 4TH PERIOD CHICAGO QUAKER OATS CO SAID EARNINGS FOR ITS FISCAL FOURTH QUARTER DECLINED 10 REFLECTING HIGHER MARKETING COSTS FOR GATORADE AND COLD CEREALS ON FLAT SALES OF 15 BILLION EARNINGS FOR THE PERIOD ENDED JUNE 30 WERE 934 MILLION OR 130 A SHARE COMPARED WITH 1039 MILLION OR 138 A SHARE A YEAR EARLIER WALL STREET HAD BEEN LOOKING FOR ABOUT 137 A SHARE IN THE LATEST QUARTER NOMI GHEZ FOOD ANALYST AT GOLDMAN SACHS & CO ESTIMATED THAT QUAKER BOOSTED ITS MARKETING EXPENDITURES BY ABOUT 16 MILLION TO 17 MILLION OR 1 IN THE FOURTH QUARTER DURING THAT TIME THE COMPANY ROLLED OUT A NEW READYTOEAT CEREAL AND HEAVILY INCREASED PROMOTIONAL SPENDING BEHIND ITS GATORADE SPORTS DRINK AS RIVAL BEVERAGES FROM COCACOLA CO AND PEPSICO INC EXPANDED DISTRIBUTION IN A CONFERENCE CALL WITH ANALYSTS QUAKER CHAIRMAN AND CHIEF EXECUTIVE WILLIAM D SMITHBURG SAID THE COMPANY EXPECTS TO HIT ITS GOAL OF INCREASING EARNINGS 7 AND SALES VOLUME BETWEEN 3 AND 5 IN THE CURRENT FISCAL YEAR FOR FISCAL 1993 QUAKER EARNED 1713 MILLION OR 234 A SHARE AFTER ACCOUNTING CHANGES OF 1155 MILLION OR 159 A SHARE ON SALES OF 57 BILLION THAT COMPARES WITH EARNINGS OF 2476 MILLION OR 325 A SHARE ON SALES OF 56 BILLION A YEAR EARLIER THE COMPANY ALSO SAID ITS BOARD AUTHORIZED REPURCHASING AS MANY AS FIVE MILLION SHARES OF COMMON STOCK FOLLOWING COMPLETION OF A THREEMILLIONSHARE REPURCHASE PROGRAM APPROVED LAST JANUARY IN FISCAL 1993 QUAKER BOUGHT BACK 48 MILLION SHARES LEAVING IT WITH 695 MILLION SHARES OUTSTANDING AS OF JUNE 30 QUAKER CLOSED AT 64 UP 75 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY 9308060006 930806 HIROSHIMA MUSEUM UNDERSCORES JAPAN'S APPARENT AMNESIA ABOUT WORLD WAR II BY JOHN BUSSEY STAFF REPORTER OF THE WALL STREET JOURNAL HIROSHIMA JAPAN JAPAN'S GRUDGING ADMISSION THIS WEEK THAT ITS WARTIME ARMY FORCED NONJAPANESE WOMEN INTO SEXUAL SLAVERY LEFT MANY ASIANS SHAKING THEIR HEADS AGAIN IT TOOK JAPAN 48 YEARS TO OWN UP TO THE ACT AND IT DID SO ONLY AFTER DOZENS OF THE WOMEN PROTESTED THIS NATION'S INCLINATION TO FORGET WORLD WAR II IS AN ENDLESS SOURCE OF IRRITATION TO OTHER ASIANS WHO WONDER WHETHER HISTORY FORGOTTEN IS ALSO HISTORY EASILY REPEATED NOWHERE IS THE AMNESIA MORE EVIDENT THAN AT HIROSHIMA'S PEACE MEMORIAL MUSEUM WHICH TODAY OBSERVES THE 48TH ANNIVERSARY OF THE MORNING THE US DROPPED AN ATOMIC BOMB ON THE CITY THE MUSEUM IS AT ONCE A REMINDER OF THE HORROR OF NUCLEAR WEAPONS AND A REMARKABLE MONUMENT TO JAPAN'S SELECTIVE MEMORY HIROSHIMA'S MODERN IDENTITY IS DEFINED BY THE BOMB A SPRAWLING PEACE PARK MARKS GROUND ZERO AND THE REMNANTS OF A BLASTED BUILDING STAND VIGIL TO THE 80000 TO 130000 PEOPLE WHO DIED INSTANTLY OR SHORTLY AFTER THE BOMB WAS DROPPED AT THE CEREMONY THE ANNUAL ANNIVERSARY SPEECHES WILL BE DELIVERED SPECIAL CONCERTS WILL BE HELD AND 1500 DOVES WILL BE RELEASED THE BOMBING IS SO MUCH A PART OF PEOPLE'S LIVES THAT BUSINESS EXECUTIVES ARE QUICK TO ASK VISITORS WHETHER THEY'VE BEEN TO THE PEACE PARK YET A MAZDA MOTOR CORP MANAGER SHOWS A GUEST WHO TOURED THE PARK AN AERIAL PHOTO OF HIROSHIMA AND QUICKLY DESCRIBES THE LOCATION OF HIS COMPANY'S CAR PLANT IN REFERENCE TO GROUND ZERO AT THE CENTER OF ALL THIS STANDS THE MUCHVISITED PEACE MEMORIAL MUSEUM THIS MAY BE JAPAN'S MOST OVERT MEMORIAL TO WORLD WAR II AND YET IT TELLS VIRTUALLY NOTHING ABOUT THE COUNTRY'S ROLE IN THE CONFLICT IT IS LARGELY A MONUMENT TO JAPAN'S OWN VIEW OF ITSELF AS VICTIM AT 815 ON THE MORNING OF AUG 6 1945 A BRIGHT FLASH RIPPED ACROSS THE HEAVENS BEGINS A RECORDED TOUR OF THE MUSEUM INSTANTLY THE GENTLE MORNING LIGHT TURNED BLACK WHAT FOLLOWS IS A GRUESOME DESCRIPTION OF THE BOMB THE BOMBING AND THE BOMB VICTIMS A YOUNG VISITOR TO THE MUSEUM MIGHT ASSUME THAT THE WAR ITSELF BEGAN THAT AUGUST MORNING FOR THERE'S SCANT MENTION OF THE YEARS OF VIOLENCE THAT LED TO THE DECISION TO BOMB HIROSHIMA INSTEAD THE VISITOR IS TOLD OF THE CRY OF HUMAN LIVES SACRIFICED FOR PEACE IN HIROSHIMA AND IS REPEATEDLY SHOWN A FILM OF THE US B29 BOMBER ENOLA GAY LOADING UP ITS CARGO AND THEN RETREATING FROM THE MUSHROOM CLOUD ONE BROCHURE ON SALE AT THE MUSEUM NOTES OF THE PLANE'S CREW HIGH ABOVE THEY CANNOT HEAR THE SURVIVORS' VOICES BEGGING FOR HELP THE VICTORS LEAVE FOR HOME WELL SATISFIED THAT THEIR TASK HAS BEEN COMPLETED FARTHER ALONG ON THE TOUR VISITORS SEE SCENES IN HIROSHIMA OF PHYSICAL DEVASTATION THE RESULT OF WHAT THE TAPE SUGGESTS WAS THE US'S ATOMIC EXPERIMENT THEY ALSO SEE THE TERRIBLE WOUNDS OF THE CITIZENS SKIN BURNED OFF FACES BLINDED BODIES SHOT THROUGH WITH SHATTERED GLASS PRESERVED IN A JAR IS A GROTESQUE KNOT OF SCAR TISSUE ON A SHELF LIES A SHARD OF GLASS REMOVED FROM VICTIM SACHIKO MASUNO FULLY 38 YEARS AFTER THE BLAST AND ALL AROUND ARE THE SINGED CLOTHES OF SCHOOLCHILDREN THERE IS HOWEVER NO MENTION OF VICTIMS WHO FELL TO JAPANESE CONVENTIONAL BOMBING IN HAWAII CHINA AND THE REST OF ASIA OR OF THE MANY OTHER JAPANESE KILLED IN JAPAN IN THE CLOSING MONTHS OF THE WAR THAT'S THE WAY IT IS IN JAPANESE SOCIETY EXPLAINS CHIE KURODA 23 YEARS OLD VISITING HIROSHIMA IT'S KEPT VAGUE THERE ISN'T ENOUGH CONTEXT THE TEXTBOOKS ONLY SAY JAPAN INVADED CHINA AND THEN NOTHING ELSE THE MUSEUM DOES MAKE GLANCING REFERENCES TO HISTORY ON ONE PLAQUE IT NOTES THE ATOMIC BOMB ALSO KILLED KOREANS FORCED TO WORK IN HIROSHIMA'S FACTORIES AND CLAIMED THE LIVES OF SOME AMERICAN PRISONERS OF WAR IN THE CITY TOO OUR PURPOSE IS TO SHOW HOW CITIZENS OF HIROSHIMA SUFFERED ON THAT DAY BECAUSE THE MUSEUM WAS BUILT BY THE CITY SAYS HIROSHI HARADA HEAD OF THE PEACE MEMORIAL THAT'S WHY THERE ISN'T AN EXPLANATION OF THE PACIFIC WAR AS A WHOLE OTHERS ALSO NOTE THAT ATOMIC WARFARE AND THE EFFECTS OF RADIATION ARE SO HORRIBLE THEY DESERVE TO BE TREATED IN ISOLATION WHILE MEMORIES HERE TEND TO BE SHORT NOT ALL BELIEVE THE BROADER WAR EXPERIENCE IS BEST SWEPT UNDER THE RUG SOME OF JAPAN'S NEWLY EMERGED POLITICAL PARTIES SAY THE NATION SHOULD DISCUSS ITS ROLE IN THE WAR MORE OPENLY THAT SAID THE WAR YEARS GET SHORT SHRIFT IN THE CLASSROOM SO CONSCIOUSNESSRAISING IN JAPAN HAS A LONG WAY TO GO ONE OLDER JAPANESE RECALLS STANDING IN FRONT OF A WORLD WAR II MEMORIAL IN SINGAPORE NOT LONG AGO AND READING THE INSCRIPTION ABOUT THE DEAD ON BOTH SIDES OF THE CONFLICT A YOUNG JAPANESE COUPLE CAME AND STOOD BESIDE HIM AND READ THE WORDS TOO THE YOUNG MAN TURNED TO THE OLDER AND PERPLEXED ASKED WERE JAPANESE TROOPS ONCE HERE 9308060005 930806 LETTERS TO THE EDITOR ACLU'S FIRST AMENDMENT HYPOCRISY ACLU EXECUTIVE DIRECTOR IRA GLASSER'S JULY 2 LETTER WE CANNOT IMPOSE PRAYER ON OTHERS IS SHAMELESSLY HYPOCRITICAL CRITICIZING JAY SEKULOW'S RULE OF LAW COLUMN WHICH ENDORSED ALLOWING STUDENTS TO INITIATE PRAYER AT GRADUATIONS MR GLASSER PREACHED ABOUT THE FIRST AMENDMENT AND THE ACLU'S SUPPORT FOR IT FREE SPEECH FOR EXAMPLE IS PROTECTED BECAUSE THE FIRST AMENDMENT PROHIBITS CONGRESS FROM PASSING ANY LAWS THAT ABRIDGE WHAT PEOPLE SAY OR THINK NO MATTER HOW UNPOPULAR THEIR VIEWS MAY BE BUT MR GLASSER AND THE ACLU HAVE MOUNTED AN AGGRESSIVE ATTACK ON FREEDOM OF SPEECH IN OUR SCHOOLS AND WORKPLACES UNDER THE GUISE OF FIGHTING RACIAL AND SEXUAL HARASSMENT THE ACLU HAS ENDORSED THE NOTION THAT SPEECH THAT IS CONSIDERED TO BE OFFENSIVE EVEN IF WELLINTENTIONED MAY ILLEGALLY CREATE AN OFFENSIVE ENVIRONMENT DESPITE THE FIRST AMENDMENT THIS NOTION HAS BEEN ACCEPTED BY COURTS UNDER PRESSURE FROM GROUPS LIKE THE ACLU AS A RESULT OF THE CIVIL RIGHTS ACT OF 1991 WHICH THE ACLU HELPED PASS THROUGH CONGRESS INDIVIDUALS AND BUSINESSES ARE LIABLE FOR UP TO 300000 IN DAMAGES FOR FAILING TO MUZZLE THEIR EMPLOYEES RECENTLY THE ACLU NATIONAL BOARD MOVED TO A MORE EXTREME POSITION HOLDING THAT ANY SPEECH THAT OFFENDS A REASONABLE WOMAN REGARDLESS OF SEVERITY SHOULD BE PUNISHABLE UNDER THE LAW WE WILL DICTATE THE WORKPLACE MORES OF THE L990S GLOATED ACLU ATTORNEY NANCY GERTNER IT WILL BE INCREDIBLY TRAUMATIC IN MASSACHUSETTS THE ACLU EVEN DISTRIBUTED A MODEL SPEECH CODE TO SCHOOLS AND UNIVERSITIES WHILE AN ACLU MEMBER I FOUND THAT THE ORGANIZATION NO LONGER INTERVENES TO PROTECT CIVIL LIBERTIES EXCEPT WHERE AN EQUALITY INTEREST IS BELIEVED TO BE AT STAKE IF FREEDOM OF SPEECH MEANS ANYTHING IT MUST MEAN THE RIGHT TO EXPRESS VIEWS THAT ARE DEEMED OFFENSIVE IDEAS THAT NO ONE FINDS OFFENSIVE HAVE NEVER NEEDED PROTECTION THE ACLU SEES THE ISSUES OF RACE AND GENDER AS TOO IMPORTANT TO BE DISCUSSED FREELY BUT THEIR IMPORTANCE IS PRECISELY WHY THEIR DISCUSSION MUST ALWAYS REMAIN FREE OF CONTROL IN THE FUTURE BETTER PEOPLE MAY LEAD THE ACLU FOR NOW HOWEVER IT'S FREE SPEECH FOR ME BUT NOT FOR THEE MR GLASSER OF THE ACLU IS CORRECT THE BILL OF RIGHTS PROTECTS LIBERTIES NOT ONLY OF THE MINORITY BUT ALSO OF THE MAJORITY IT ASTOUNDS ME HOW THE COURTS WILL NOT ALLOW STUDENTS TO EXPRESS THEIR RELIGIOUS FEELINGS WHERE IS THE PROTECTION FOR THE RIGHTS OF THESE STUDENTS IT SEEMS THAT THE ESTABLISHMENT CLAUSE ITSELF IS BEING USED TO INFRINGE ON THE RIGHTS OF MANY PEOPLE WHO WANT TO EXPRESS THEIR FEELINGS ALLOWING STUDENTS TO PRAY HARDLY CONSTITUTES ESTABLISHMENT OF A RELIGION WITH RESPECT TO PEOPLE'S RIGHTS BEING CURTAILED DUE TO THEIR UNPOPULAR VIEWS PERHAPS MR GLASSER SHOULD VISIT THE UNIVERSITY OF PENNSYLVANIA OR SOME OF OUR OTHER ESTEEMED UNIVERSITIES AND SEE HOW THEY TOLERATE SOME FREE SPEECH IT'S TIME FOR PEOPLE IN THIS COUNTRY TO WAKE UP THIS COUNTRY WAS FOUNDED ON MANY BELIEFS INCLUDING A BELIEF IN GOD IT SEEMS THAT OUR BELIEFS TODAY DEPEND ON WHOM WE ARE TALKING TO CONSEQUENTLY WE END UP WITH ENTIRE GENERATIONS OF PEOPLE WHO HAVE NO CORE VALUES OR BELIEFS TODAY'S PARENTS DON'T TAKE THE TIME TO INSTILL ANY SENSE OF RESPONSIBILITY IN THEIR CHILDREN COULD THIS BE BECAUSE THEY THEMSELVES DON'T HAVE SUCH A SENSE I AM NOT IN FAVOR OF A RELIGIOUS GOVERNMENT BUT I AM IN FAVOR OF REESTABLISHING SOME TRADITIONAL MORALITY IN OUR SOCIETY MAYBE A SMALL STEP WOULD BE FOR THE SUPREME COURT TO CLEAR THE WAY FOR AND ALLOW STUDENTS TO PRAY IN SCHOOL IF THEY SO DESIRE NO MATTER HOW UNPOPULAR THEIR VIEWS MAY BE 9308060004 930806 BUSINESS BRIEFS REGAL COMMUNICATIONS CORP HAS SIGNED A MEMORANDUM OF UNDERSTANDING TO ACQUIRE BALTIMOREBASED INPHOMATION INC FOR 35 MILLION THE PURCHASE WILL BE 20 MILLION IN REGAL STOCK 10 MILLION IN CASH AND A 5 MILLION PROMISSORY NOTE TANDY CORP'S SAMESTORE SALES INCREASED 7 IN JULY THE 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