EASTMAN KODAK CO IS EXPECTED TO ANNOUNCE TODAY THAT ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER KAY R WHITMORE WILL RETIRE BY YEAR'S END ACCORDING TO INDIVIDUALS FAMILIAR WITH THE COMPANY IN A CONFERENCE CALL WITH ANALYSTS KODAK OFFICIALS ALSO ARE EXPECTED TO DISCLOSE THAT THE SEARCH FOR MR WHITMORE'S SUCCESSOR WILL EXTEND BEYOND THE RANKS OF CURRENT MANAGEMENT YESTERDAY THE ROCHESTER NY PHOTOGRAPHY CHEMICALS AND HEALTHCARE COMPANY SAID ONLY THAT IT WOULD MAKE A SIGNIFICANT ANNOUNCEMENT A SPOKESMAN DECLINED TO COMMENT THE MOVE COMES JUST THREE WEEKS AFTER THE 60YEAROLD CHAIRMAN TOOK A BROWBEATING FROM INSTITUTIONAL INVESTORS AT A SPECIAL MEETING HE CALLED IN NEW YORK THE MEETING ON JULY 14 WAS SET UP SO INVESTORS COULD TELL MR WHITMORE AND KEY MEMBERS OF THE KODAK BOARD WHAT THEY EXPECT TO SEE IN A KODAK TURNAROUND PLAN WHICH MR WHITMORE HAS PROMISED TO DELIVER IN SEPTEMBER BUT DAYS BEFORE THE MEETING KODAK SAID THE BOARD MEMBERS WOULDN'T ATTEND INSTEAD MR WHITMORE WENT ALONE AND OPENED THE MEETING BY ASKING INVESTORS FOR ADVICE ON HOW KODAK SHOULD COMPETE WITH MAKERS OF PRIVATELABEL FILM ONE INVESTOR WHO DECLINES TO BE NAMED SAID HE WAS STUNNED THAT THE MAN CHARGED WITH RUNNING THE COMPANY WOULD TURN TO OUTSIDERS FOR ADVICE ON PARTICULAR BUSINESS PROBLEMS THE INVESTORS WENT ON TO DISCUSS THE PRIVATELABEL PROBLEM UNTIL ONE OF THEM INTERRUPTED SAYING HE WANTED TO READ A LAUNDRY LIST OF ITEMS THAT HE HOPED TO SEE IN THE SEPTEMBER PLAN THIS INVESTOR TOLD MR WHITMORE TO SELL THE STERLING WINTHROP DRUG UNIT LAY OFF 20000 WORKERS AND ACHIEVE RECORD EARNINGS IN 1994 WITH NO MORE EXCUSES ABOUT CURRENCY FLUCTUATIONS OR A WEAK ECONOMY PEOPLE WHO WERE IN THE ROOM SAID ATTENDEES IDENTIFIED THIS INVESTOR AS BOB BERTELSEN OF FIDELITY INVESTMENTS MR BERTELSEN AND FIDELITY DIDN'T RETURN TELEPHONE CALLS VOTE TAKEN ON LIST AFTER THE LIST WAS READ ANOTHER INVESTOR SUGGESTED THAT THE PEOPLE IN THE ROOM VOTE ON THE LIST OF 13 PRESENT 11 VOTED FOR IT TWO PEOPLE WHO ATTENDED SAID BOTH DECLINED TO BE IDENTIFIED MR WHITMORE RESPONDED BY SAYING THAT THE LAYOFFS AND SPENDING CUTS HE'S MULLING WOULDN'T MEET THE MORE AGGRESSIVE HOPES ON WALL STREET ACCORDING TO PEOPLE WHO ATTENDED MR WHITMORE HAS BEEN UNDER PRESSURE TO TAKE AN AXE TO KODAK SINCE LATE APRIL WHEN HIS NEWLY HIRED CHIEF FINANCIAL OFFICER CHRISTOPHER J STEFFEN ABRUPTLY QUIT IN A DISPUTE OVER HOW QUICKLY AND AGGRESSIVELY TO CUT COSTS DURING MR STEFFEN'S 11 WEEKS ON THE JOB HE BROADLY HINTED TO INVESTORS THAT KODAK WOULD BOOST ITS SAGGING PROFITS THROUGH MASSIVE LAYOFFS SPENDING CUTS AND THE SHEDDING OF A MAJOR BUSINESS AFTER MR STEFFEN QUIT SOME INVESTORS CALLED FOR MR WHITMORE'S RESIGNATION BUT THE CHAIRMAN MANAGED TO WIN BACK THEIR CONFIDENCE BY PROMISING TO DELIVER HIS OWN TURNAROUND PLAN HE WON MORE POINTS LAST MONTH BY ANNOUNCING PLANS TO SPIN OFF KODAK'S EASTMAN CHEMICAL UNIT BY YEAR'S END AND SLASHING CAPITAL SPENDING FOR THE QUARTER ENDED JUNE 30 CAPITAL SPENDING WAS DOWN 40 TO 324 MILLION FROM 538 MILLION A YEAR EARLIER THOSE ARE PROMISING MOVES BUT KODAK HAS YET TO RESOLVE OTHER PROBLEMS INCLUDING BLOATED SPENDING ON ADVERTISING AND RESEARCH AND DEVELOPMENT ALSO INDUSTRY WATCHERS BELIEVE KODAK HAS LOST MARKET SHARE TO PRIVATELABEL FILM WHICH SELLS FOR 1 TO 2 LESS THAN KODAKBRAND FILM MR WHITMORE IS EXPECTED TO ADDRESS THIS ISSUE IN HIS SEPTEMBER PLAN IT'S EXPECTED THAT THE PLAN WON'T BE RELEASED UNTIL IT'S REVIEWED BY THE BOARD WHICH MEETS ON SEPT 13 IN AFTER HOURS TRADING YESTERDAY KODAK ROSE 875 CENTS TO 56 9308060002 930806 AST RESEARCH POSTS FISCAL 4THPERIOD LOSS CITES ONETIME CHARGE IRVINE CALIF AST RESEARCH INC SAID A 125 MILLION CHARGE FOR ITS ACQUISITION OF TANDY CORP'S PERSONAL COMPUTER BUSINESS LEFT IT WITH A FISCAL FOURTHQUARTER LOSS OF 87 MILLION OR 276 A SHARE EXCLUDING THE ONETIME CHARGE AST SAID EARNINGS FOR THE QUARTER ENDED JULY 3 WERE 113 MILLION OR ABOUT 35 CENTS A SHARE THAT IS DOWN ABOUT 40 FROM AST'S YEARAGO FOURTH QUARTER WHEN THE COMPUTER MANUFACTURER HAD NET INCOME OF 186 MILLION OR 59 CENTS A SHARE REVENUE CLIMBED 54 TO 4092 MILLION FROM 2663 MILLION AST'S RESULTS WERE ABOUT IN LINE WITH ANALYSTS' EXPECTATIONS IN OVERTHECOUNTER TRADING THE COMPANY CLOSED YESTERDAY AT 14875 A SHARE DOWN 50 CENTS SAFI QURESHEY AST'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY EXPECTS DEMAND FOR ITS COMPUTER LINES TO GROW IN THE SECOND HALF THIS IS OUR SLOWEST QUARTER MR QURESHEY SAID BUT WE EXPECT IT TO BE STRONG FOR AST BECAUSE OF THE DEMAND FOR OUR PRODUCTS AND BECAUSE OF THE IMPACT OF OUR ACQUISITION FROM TANDY MR QURESHEY SAID THAT WHILE THE PC MARKET HAS BEEN HURT BY PRICE CUTTING AND SLOWING DEMAND MUCH OF THAT LAG IN DEMAND IS FOR OLDER PC MODELS DEMAND REMAINS STRONG FOR AST'S NOTEBOOK COMPUTER LINES HE SAID THIS IS A MARKETSHARE GAME SAID MR QURESHEY WE FEEL THE STRONG WILL GET STRONGER AND WE EXPECT TO BE AMONG THEM FOR THE YEAR AST REPORTED A LOSS OF 537 MILLION OR 172 A SHARE THAT COMPARES WITH PROFIT OF 685 MILLION OR 216 A SHARE FOR FISCAL 1992 EXCLUDING THE FOURTHQUARTER RESTRUCTURING CHARGE AST SAID IT EARNED 598 MILLION IN FISCAL 1993 REVENUE ROSE TO 141 BILLION FROM 9441 MILLION 9308060001 930806 TECHNOLOGY & HEALTH DNAP TO BOOST SALES EFFORT FOR NEW BREED OF TOMATO CINNAMINSON NJ DNA PLANT TECHNOLOGY CORP SAID TEST MARKETING OF ITS VINERIPENED TOMATO WAS SO SUCCESSFUL IT WILL BROADEN ITS MARKETING EFFORT THE NEW TOMATO WAS CREATED BY A SHORTCUT PLANT BREEDING TECHNIQUE RATHER THAN BY GENETIC ENGINEERING THE TOMATO HOWEVER HAS SOME OF THE SAME ATTRIBUTES THAT ARE BEING GENETICALLY ENGINEERED INTO NEW STRAINS THAT MAY REACH THE MARKET WITHIN TWO YEARS DISTRIBUTION OF THE TOMATO DUBBED THE VINESWEET AND SOLD UNDER THE FRESHWORLD FARMS BRAND WILL BE EXPANDED TO 500 SUPERMARKETS BY THE END OF THE YEAR DNAP SAID TEST MARKETING IN 41 SUPERMARKETS IN PHILADELPHIA AND COLUMBUS OHIO BEGAN LAST APRIL THE COMPANY SAID THE VINESWEET TOMATO GRABBED A 16 SHARE OF THE MARKET DURING ITS FIRST THREE MONTHS OF TEST MARKETING THE TOMATO SOLD AT A PREMIUM OVER STANDARD TOMATOES BUT FOR LESS THAN IMPORTED TOMATOES SAID ROBERT SERENBETZ CHIEF EXECUTIVE THE NEW TOMATO STAYS FRESH AND FIRM FOR 10 TO 14 DAYS AFTER IT IS PLUCKED OFF THE VINE JUST AS IT BEGINS TO SHOW ITS FIRST SIGNS OF REDNESS STANDARD TOMATOES ALLOWED TO RIPEN ON THE VINE WILL STAY FRESH ONLY FOR THREE TO SEVEN DAYS FOR STANDARD TOMATOES TO BE SHIPPED AND BE AVAILABLE YEAR ROUND GROWERS MUST PICK THE FRUIT GREEN AND RIPEN IT ARTIFICIALLY WITH ETHYLENE GAS DURING SHIPMENT MR SERENBETZ AND DNAP CHIEF SCIENTIST JOHN BEDBROOK DECLINED TO DRAW ANY PORTENTS FROM THE VINESWEET TOMATO FOR THE COMPANY'S GENETICALLY ENGINEERED TOMATO EXPECTED IN 1995 THE LATTER FRUIT WILL HAVE A SHELF LIFE OF SIX TO EIGHT WEEKS ACHIEVED BY ALTERING THE GENES OF THE FRUIT SO THAT ONE OF THE SEVERAL GENES INVOLVED IN RIPENING IS TURNED OFF 9308060146 930715 COUNTERPOINT CLINTON IS RIGHT ON INTERNATIONAL HUMAN RIGHTS BY ANDREW REDING SECRETARY OF STATE WARREN CHRISTOPHER'S JUNE 14 ANNOUNCEMENT THAT THE CLINTON ADMINISTRATION WILL PURSUE RATIFICATION OF FOUR HUMANRIGHTS TREATIES HAS SET OFF A VOLLEY OF PROTESTS FROM THE FOLKS WHO BROUGHT DOWN THE LANI GUINIER NOMINATION IN SEPARATE BUT ALMOST IDENTICAL EDITORIALS THE JOURNAL AND CHARLES KRAUTHAMMER WRITING IN THE WASHINGTON POST HAVE FIRED OPENING SHOTS TAKING SPECIAL AIM AT THE INTERNATIONAL COVENANT ON ECONOMIC SOCIAL AND CULTURAL RIGHTS THIS COVENANT THEY INSIST SERVES THE INTERESTS OF THIRD WORLD KLEPTOCRATS WHO WOULD USE THE TREATY TO UNDERMINE CIVIL AND POLITICAL RIGHTS AND TO COMPEL THE US AND OTHER ADVANCED INDUSTRIALIZED POWERS TO SUBSIDIZE THEIR REPRESSIVE AND IMPOVERISHED REGIMES UNDER THE GUISE OF DEVELOPMENT EVEN A CURSORY GLANCE AT THE LIST OF COUNTRIES THAT HAVE AND HAVE NOT ENDORSED THE COVENANT SUGGESTS THAT MR KRAUTHAMMER AND THE JOURNAL HAVE THEIR ARGUMENT BACKWARD MOST OF THE COUNTRIES THAT WOULD RELATIVIZE CIVIL AND POLITICAL RIGHTS IN THE NAME OF DEVELOPMENT HAVE NOT EVEN SIGNED THE TREATY MUCH LESS RATIFIED IT THAT INCLUDES CHINA MYANMAR THAILAND INDONESIA MALAYSIA PAKISTAN SAUDI ARABIA NIGERIA SOUTH AFRICA PARAGUAY AND CUBA CONVERSELY THE TREATY HAS BEEN RATIFIED BY ALL THE WORLD'S MAJOR DEMOCRACIES EXCEPT THE US BACKERS INCLUDE JAPAN SOUTH KOREA THE PHILIPPINES AUSTRALIA NEW ZEALAND ALL OF EUROPE AND ALMOST ALL OF LATIN AMERICA THIS ALIGNMENT SHOULD LEAD US TO SUSPECT FLAWS IN THE REST OF THE ARGUMENT TO BEGIN WITH IT IS NO ACCIDENT THAT AUTHORITARIAN REGIMES FIND THE TREATY UNPALATABLE AMONG ITS MAIN PROVISIONS THE COVENANT ESTABLISHES RIGHTS TO FORM FREE TRADE UNIONS AND TO STRIKE SUCH RIGHTS ARE ANATHEMA TO AUTOCRATS OF THE RIGHT AND LEFT ALIKE FOR TWO REASONS FIRST FREE LABOR UNIONS LIKE FREE ELECTIONS CREATE CHECKS AND BALANCES AGAINST CENTRALIZED AUTHORITY SECOND MOST THIRD WORLD AUTOCRATS ARE DELIBERATELY REPRESSING LABOR IN ORDER TO ENSURE ARTIFICIALLY LOW WAGES THAT WILL BOOST EXPORTS AND ATTRACT FOREIGN INVESTMENT IN THIS SENSE THEY ARE INDEED KLEPTOCRATS USING THEIR MONOPOLY OF POLITICAL POWER TO CHANNEL THE BENEFITS OF ECONOMIC GROWTH TO PRIVILEGED ELITES THAT INCIDENTALLY IS WHY THEY ALSO DO NOT LIKE THE COVENANT'S PROVISIONS FOR OCCUPATIONAL HEALTH AND SAFETY AND REASONABLE MINIMUM WAGES BUT THAT IS NOT ALL FAR FROM REQUIRING THAT WEALTHIER NATIONS SUBSIDIZE LESS PROSPEROUS NATIONS THE COVENANT LAYS PRIMARY RESPONSIBILITY FOR SATISFYING CITIZEN'S RIGHTS TO HEALTH EDUCATION NUTRITION HOUSING AND SOCIAL SECURITY ON THEIR OWN GOVERNMENTS RECOGNIZING DISPARITIES IN RESOURCES THE TREATY CALLS FOR PROGRESSIVE IMPLEMENTATION OF SUCH RIGHTS IN KEEPING WITH THE FINANCIAL CAPABILITIES OF MEMBER STATES NOWHERE DOES THE TREATY ESTABLISH A RIGHT TO DEVELOP OR ANY OTHER COLLECTIVE RIGHT OTHER THAN THE RIGHT TO SELFDETERMINATION AS IMPLIED IN A MAY 19 JOURNAL EDITORIAL PAGE ARTICLE BY AMITY SHLAES ON THE CONTRARY ARTICLE 62 SPECIFIES THAT DEVELOPMENT IS TO PROCEED UNDER CONDITIONS SAFEGUARDING FUNDAMENTAL POLITICAL AND ECONOMIC RIGHTS OF THE INDIVIDUAL WHILE INTERNATIONAL COOPERATION IS ENCOURAGED IT IS VOLUNTARY AND ACCOMPANIED BY THE PRESUMPTION THAT BENEFICIARIES WILL HONOR THEIR OBLIGATION TO RESPECT ESSENTIAL FREEDOMS INCLUDING LABOR RIGHTS AUTOCRATS OF ALL STRIPES WHO HARBOR THOUGHTS OF TRYING TO USE ECONOMIC SOCIAL AND CULTURAL RIGHTS AS A COUNTERWEIGHT TO CIVIL AND POLITICAL RIGHTS WILL FIND LITTLE SOLACE IN ANOTHER PROVISION OF THE COVENANT ARTICLE 52 SPECIFIES THAT NO RESTRICTION UPON OR DEROGATION FROM ANY OF THE FUNDAMENTAL HUMAN RIGHTS RECOGNIZED OR EXISTING IN ANY COUNTRY IN VIRTUE OF LAW CONVENTIONS REGULATIONS OR CUSTOM SHALL BE ADMITTED ON THE PRETEXT THAT THE PRESENT COVENANT DOES NOT RECOGNIZE SUCH RIGHTS OR THAT IT RECOGNIZES THEM TO A LESSER EXTENT IF YOU BEGIN TO SUSPECT THIS IS ANOTHER OF THOSE WESTERNINSPIRED TREATIES SNEERED AT BY APOLOGISTS FOR DICTATORSHIP THEOCRACY AND ONEPARTY RULE YOU ARE RIGHT EXAMINE BOTH THE CONTENT AND PEDIGREE OF THE COVENANT ON ECONOMIC SOCIAL AND CULTURAL RIGHTS AND YOU WILL FIND IT SHARES A COMMON LEGAL PHILOSOPHY AND PARENTAGE WITH ITS SIBLING THE COVENANT ON CIVIL AND POLITICAL RIGHTS WHICH WAS RATIFIED BY THE US LAST YEAR BOTH ELABORATE ON RIGHTS FIRST PROCLAIMED AT THE GLOBAL LEVEL IN THE UNIVERSAL DECLARATION OF HUMAN RIGHTS AS SUCH THE COVENANTS FULFILL THE VISION OF FRANKLIN ROOSEVELT AND WINSTON CHURCHILL IN THE ATLANTIC CHARTER THEIR JOINT DECLARATION OF AUG 14 1941 IN WHICH THEY SKETCHED OUT THE MISSION OF WHAT WAS TO BECOME THE UNITED NATIONS AMONG OTHER PROVISIONS THE CHARTER SPECIFIED THE TWO LEADERS' DESIRE TO BRING ABOUT THE FULLEST COLLABORATION BETWEEN ALL NATIONS IN THE ECONOMIC FIELD WITH THE OBJECT OF SECURING FOR ALL IMPROVED LABOR STANDARDS ECONOMIC ADVANCEMENT AND SOCIAL SECURITY OF FURTHER IMPORTANCE WAS THE ENDORSEMENT BY CHURCHILL A MAN OF IMPECCABLE CONSERVATIVE CREDENTIALS OF THE PRINCIPLES OF FREEDOM FROM FEAR AND FREEDOM FROM WANT TWO OF THE FOUR FREEDOMS POPULARIZED BY FDR THE OTHERS BEING FREEDOM OF SPEECH AND WORSHIP UNDERLYING THIS POSITION WAS THE RECOGNITION THAT HUMAN RIGHTS ARE INDIVISIBLE CONSCIOUS OF THE ORIGINS OF THE TYRANNY THEY CONFRONTED CHURCHILL AND ROOSEVELT UNDERSTOOD IT IS POINTLESS TO TRY TO SEGREGATE CIVIL AND POLITICAL RIGHTS FROM ECONOMIC AND SOCIAL RIGHTS AS PRESIDENT ROOSEVELT NOTED IN HIS 1944 MESSAGE TO CONGRESS TRUE INDIVIDUAL FREEDOMS CANNOT EXIST WITHOUT ECONOMIC SECURITY AND INDEPENDENCE NECESSITOUS MEN ARE NOT FREE MEN' THE CONVERSE IS A POINT NOT LOST ON THE AUTOCRATS AND PLUTOCRATS OF THIS WORLD WHO UNDERSTAND ALL TOO WELL THAT GRANTING LABOR RIGHTS AND PROVIDING FOR DECENT WAGES EDUCATION HEALTH CARE AND SOCIAL SECURITY IS AS DANGEROUS TO THEIR POSITIONS OF PRIVILEGE AS HOLDING FREE ELECTIONS HISTORY AND PRESENT EXPERIENCE CONFIRM THAT BROADBASED WELLEDUCATED AND ECONOMICALLY SECURE MIDDLE CLASSES ARE THE MOST RELIABLE ENEMIES OF ARBITRARY RULE AND MOST STALWART DEFENDERS OF DEMOCRACY PRESIDENT CLINTON AND SECRETARY CHRISTOPHER ARE ACTING IN THE BEST AMERICAN TRADITION IN PURSUING RATIFICATION OF THE INTERNATIONAL COVENANT ON ECONOMIC SOCIAL AND CULTURAL RIGHTS IT IS NOW UP TO THE SENATE TO DECIDE WHAT COMPANY WE SHALL KEEP WHETHER THE US WILL WEIGH IN ON THE SIDE OF THE INTERNATIONAL AUTOCRATS' CLUB OR JOIN OUR FELLOW DEMOCRACIES IN COMPLETING AN INTERNATIONAL BILL OF RIGHTS THAT WILL CONTRIBUTE TO THE GLOBAL CONSOLIDATION OF DEMOCRACY AND THE RULE OF LAW MR REDING DIRECTS THE NORTH AMERICA PROJECT OF THE WORLD POLICY INSTITUTE AT THE NEW SCHOOL FOR SOCIAL RESEARCH SEE RELATED LETTER LETTERS TO THE EDITOR RIGHT TO DEVELOPMENT' DANGEROUS PROPOSITION WSJ AUG 6 1993 9307150085 YY93 MM08 9308060138 930702 LETTERS TO THE EDITOR WE CANNOT IMPOSE PRAYER ON OTHERS JAY SEKULOW'S JUNE 9 RULE OF LAW COLUMN PRAY IN PEACE SAYS AMONG OTHER THINGS THAT THE AMERICAN CIVIL LIBERTIES UNION HAS WRONGLY ACCUSED HIS ORGANIZATION THE AMERICAN CENTER FOR LAW AND JUSTICE OF LAUNCHING A CAMPAIGN OF MISINFORMATION ABOUT THE CONTROVERSIAL ISSUE OF SCHOOL PRAYER YET IN THE SAME ARTICLE HE BADLY MISINFORMS READERS ABOUT THE MEANING OF A CRUCIAL RULING BY THE US SUPREME COURT MR SEKULOW SAYS THAT ON JUNE 7 THE SUPREME COURT DECIDED TWO IMPORTANT CASES ONE OF WHICH WAS A CONTROVERSIAL SCHOOL PRAYER CASE OUT OF HOUSTON CALLED JONES V CLEAR CREEK HE SAYS FURTHER THAT BY DECIDING NOT TO HEAR THE CASE THE COURT CLEARED THE WAY FOR STUDENTLED AND STUDENTINITIATED PRAYER AT GRADUATIONS NATIONWIDE FOR EMPHASIS HE ADDS THAT THE COURT ALLOWED THIS PRACTICE THE COURT DID NO SUCH THING IN LEE V WEISMAN THE SUPREME COURT RULED THAT THE CONSTITUTION PROTECTS THE RELIGIOUS FREEDOM OF ALL PUBLIC SCHOOL STUDENTS BY FORBIDDING THE STATE TO EXACT RELIGIOUS CONFORMITY FROM A STUDENT AS THE PRICE OF ATTENDING HER OWN GRADUATION MR SEKULOW'S ORGANIZATION HAS ATTEMPTED TO GET AROUND THAT RULING BY ARGUING THAT WHILE IT MAY BE UNCONSTITUTIONAL FOR PUBLIC SCHOOL OFFICIALS TO IMPOSE PRAYERS AT GRADUATION EXERCISES UPON STUDENTS WHO DO NOT SHARE THE RELIGIOUS BELIEFS REFLECTED BY SUCH PRAYERS A MAJORITY OF STUDENTS MAY IMPOSE SUCH PRAYERS THAT'S DEMOCRACY SAYS MR SEKULOW THE ACLU DOES NOT AGREE THE BILL OF RIGHTS PROTECTS LIBERTY PRECISELY BY LIMITING WHAT THE MAJORITY MAY DO TO MINORITIES 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 A MAJORITY OF STUDENTS MAY NO MORE VOTE AWAY THE RELIGIOUS RIGHTS OF THE MINORITY THAN THEY MAY DECIDE BY MAJORITY VOTE TO TAKE AWAY ANY OTHER RIGHTS FUNDAMENTAL RIGHTS DO NOT DEPEND ON THE OUTCOME OF ELECTIONS IF THEY DID RACIAL SEGREGATION MIGHT STILL BE LEGAL IN THE SOUTH UNFORTUNATELY IN THE HOUSTON CASE THE US COURT OF APPEALS FOR THE FIFTH CIRCUIT AGREED WITH MR SEKULOW AND PERMITTED PRAYERS AT PUBLIC SCHOOL GRADUATION EXERCISES IF A MAJORITY OF STUDENTS WANTED IT THE CASE WAS APPEALED TO THE SUPREME COURT AND THE COURT DECIDED NOT TO DECIDE THE CASE IT IS THAT NONDECISION THAT MR SEKULOW HAS CHARACTERIZED AS HAVING CLEARED THE WAY FOR AND ALLOWED A MAJORITY OF STUDENTS TO IMPOSE PRAYER ON THEIR FELLOWS BUT A DECISION NOT TO DECIDE IS NEVER A DECISION ON THE MERITS NOTHING HAS BEEN DECIDED THE COURT AGREES TO REVIEW ONLY A SMALL PERCENTAGE OF CASES PRESENTED TO IT WHEN IT DECIDES NOT TO REVIEW A GIVEN CASE IT ALMOST NEVER SAYS WHY FOR A VARIETY OF REASONS THE COURT OFTEN PREFERS TO DECIDE AN ISSUE IN A DIFFERENT CASE OR AT A DIFFERENT TIME THERE IS GOOD REASON TO BELIEVE THAT WHEN THE SUPREME COURT DECIDES THIS ISSUE IT WILL NOT AGREE WITH MR SEKULOW IN THE SCHOOL PRAYER CASE LAST YEAR FOR EXAMPLE THE COURT RULED THAT WHILE IN SOME SOCIETIES THE WISHES OF THE MAJORITY MIGHT PREVAIL THE ESTABLISHMENT CLAUSE OF THE FIRST AMENDMENT IS ADDRESSED TO THIS CONTINGENCY AND REJECTS IT SEE RELATED LETTER LETTERS TO THE EDITOR ACLU'S FIRST AMENDMENT HYPOCRISY WSJ AUG 6 1993 9307020097 YY93 MM08 9308060134 930712 GLOBAL VIEW AL GORE'S SEVEN SEALS AND WHAT THEY COST BY GEORGE MELLOAN MODERN INDUSTRIAL CIVILIZATION AS PRESENTLY ORGANIZED IS COLLIDING VIOLENTLY WITH OUR PLANET'S ECOLOGICAL SYSTEM THE FEROCITY OF ITS ASSAULT ON THE EARTH IS BREATHTAKING AND THE HORRIFIC CONSEQUENCES ARE OCCURRING SO QUICKLY AS TO DEFY OUR CAPACITY TO RECOGNIZE THEM THEOLOGIANS HAVE FOR CENTURIES PUZZLED OVER THE BOOK OF REVELATION'S DRAMATIC SEVEN SEALS PROPHECIES AL GORE'S GRIM VISION IS EASIER TO INTERPRET IT'S NONSENSE CIVILIZATION IS NOT DESTROYING THE PLANET THE ONLY SERIOUS QUESTION IS WHETHER THE VICE PRESIDENT IS JUST ANOTHER SCARE MONGER OR A MAN WHOSE ZEALOTRY HAS DEPRIVED HIM OF BALANCED AND RATIONAL THOUGHT WHATEVER THE ANSWER AND IT COULD BE A LITTLE OF BOTH MR GORE'S CONCOCTIONS CAN NO LONGER BE REGARDED AS A JOKE HE AND HIS FELLOW ENVIRONMENTAL RADICALS ARE INFLICTING HUGE BURDENS OF ECONOMIC WASTE ON THAT MODERN INDUSTRIAL CIVILIZATION THEY SO DETEST IF THE GLOBAL RECESSION DRAGS ON THEY WILL DESERVE A MEASURE OF BLAME ENVIRORADICALS HAVE PERPETRATED A SERIES OF EXPENSIVE HOAXES THEIR GLOBAL WARMING MYTH HAS BEEN EXPLODED BY ASSIDUOUS NEW STUDIES OF CLIMACTIC TRENDS BUT REGULATORY EXCESSES THAT HAVE DERIVED FROM IT INCLUDING PARTS OF THE 1990 US CLEAN AIR ACT ARE COMMITTING BILLIONS OF DOLLARS TO NO USEFUL PURPOSE TAXHUNGRY US AND EUROPEAN POLITICIANS ARE TRYING TO KEEP THE MYTH ALIVE TO JUSTIFY A FURTHER BURDEN HUGE NEW TAXES ON ENERGY THE UN'S 1987 MONTREAL PROTOCOL TO RID THE WORLD OF CHLOROFLUOROCARBON CFC REFRIGERANTS HAS MEANT BILLIONS IN CONVERSION COSTS PAID FOR BY BUYERS OF REFRIGERATORS AIR CONDITIONERS AND CARS NATIONAL AERONAUTICS AND SPACE ADMINISTRATION NASA BUREAUCRATS WHOSE SATELLITE SENSORS INITIALLY GAVE SUPPORT TO THE THEORY THAT CFC'S WERE DESTROYING THE EARTH'S OZONE SHIELD NOW ARE BACKTRACKING AS SERIOUS METEOROLOGISTS HAVE KNOWN FOR YEARS NATURE MAINTAINS ITS OWN BALANCE IN THE OZONE LAYER THE SUN'S ULTRAVIOLET RAYS ACT ON THE UPPER ATMOSPHERE TO CREATE OZONE ENVIRORADICALS PUSHED THE CFC BAN BY CLAIMING THAT OZONE DEPLETION MEANS EARTHLINGS SOON WILL BE COOKED BY ULTRAVIOLET RAYS OR AT BEST AFFLICTED WITH AN EPIDEMIC OF SKIN CANCER IF ANYONE HAD WANTED TO BOTHER THEY COULD HAVE ASKED QUALIFIED RESEARCHERS HOW MUCH UV RADIATION SUNBATHERS ARE ACTUALLY GETTING THE US NATIONAL CANCER INSTITUTE WHICH HAS BEEN TAKING MEASUREMENTS SINCE 1974 COULD HAVE TOLD THEM THAT UV RADIATION REACHING THE EARTH HAD BEEN FALLING LATELY NOT RISING THEN THERE IS THE BIODIVERSITY TREATY THE SECOND GREAT UN ACHIEVEMENT AT RIO ALONG WITH THE AGREEMENT TO COMBAT GLOBAL WARMING PRESIDENT BUSH FORESEEING HUGE COSTS AND LOSSES OF US SOVEREIGNTY BUT FEARFUL OF ATTACKLING ENVIRORADICALS HEADON FINESSED THIS ONE SUFFERING MUCH ABUSE AT RIO AS A RESULT NOW CLINTONGORE ARE GIVING THE TREATY FULL BACKING IT WILL INFLICT FURTHER LARGE COSTS ON WEARY TAXPAYERS AND CONSUMERS AMONG ITS JOYS IS A GIFT FOR PLAINTIFF LAWYERS A PRINCIPLE PROPOSING COMPENSATION FOR THE VICTIMS OF ENVIRONMENTAL DAMAGE THAT COULD PRODUCE THE MOTHER OF ALL CLASS ACTIONS WITH A TEAM OF LAWYERS FROM SAY ATLANTA REPRESENTING THE ENTIRE WORLD TO A WORLD BANK MEETING IN BEIJING IN MAY CLINTONGORE SENT WORD THAT THE US WOULD BE A MAJOR DONOR TO A PROPOSED NEW 39 BILLION GLOBAL ENVIRONMENT FACILITY GEF AGREED TO AT RIO THE WORLD BANK WOULD FUNNEL THIS MONEY TO THIRD WORLD GOVERNMENTS TO PROTECT BIODIVERSITY WHICH EXPLAINS WHY RIO GENERATED SO MUCH ENTHUSIASM AMONG DELEGATES FROM SUCH PLACES AS ZAMBIA AND ZAIRE BIODIVERSITY IN CASE YOU WONDER REFERS TO THE MILLIONS OF SPECIES AND SUBSPECIES OF PLANTS AND ANIMALS ENVIRORADICALS CLAIM THAT HUMANS ARE DESTROYING OTHER SPECIES AT AN ALARMING RATE IN A FUNDRAISING LETTER LAST YEAR RUSSELL TRAIN OF THE WORLD WILDLIFE FUND CLAIMED THAT WITHOUT FIRING A SHOT WE MAY KILL ONE FIFTH OF ALL SPECIES OF LIFE ON THIS PLANET A NEW YORK TIMES OPED ARTICLE IN MAY AUTHORED BY ECONOMISTDEMOGRAPHER JULIAN L SIMON AND POLITICAL SCIENTIST AARON WILDAVSKY SAID THIS ASSERTION IS UTTERLY WITHOUT SCIENTIFIC UNDERPINNINGS AND RUNS COUNTER TO ALL THE EXISTING EVIDENCE THE HIGHEST OBSERVED RATE OF EXTINCTION IS ONE SPECIES A YEAR THEY WROTE IF YOU'RE WONDERING WHY SO MANY POWERFUL PEOPLE HAVE EMBRACED THE PHONY SCIENCE OF ENVIRORADICALS THERE IS A PLAUSIBLE ANSWER OTHERS HAVE DISCOVERED WHAT ENVIRONMENTAL ACTIVIST FUND RAISERS LEARNED LONG AGO ECOSCARES SELL PRESS AND BROADCASTING EDITORS WHO HAVE A LOT TO ANSWER FOR WHEN CALLED TO JUDGMENT FOR THEIR FACTCHECKING FAILURES PRESUMABLY RELISH DIRE WARNINGS EVEN IF GROUNDLESS TO LIVEN UP DULL NEWS DAYS NOTVERYGOOD SCIENTISTS CAN GET GRANTS BY JOINING THE ECODISASTER BANDWAGON POLITICIANS AND GOVERNMENT BUREAUCRATS GRAB MORE TAX MONEY AND REGULATORY POWER THIRD WORLD GOVERNMENTS WINKLE MORE MONEY OUT OF THE RICH NATIONS BUSINESSES GET A SHARE TOO DUPONT HAS USED THE OZONE SCARE TO PUSH ITS EXPENSIVE SUBSTITUTE FOR CHEAP CFC REFRIGERANTS SERIOUS ENVIRONMENTALISTS HAVE CAUSE FOR CONCERN ENVIROSCAMS WASTE RESOURCES THAT COULD BE DEVOTED TO GENUINE CLEANUP NEEDS SUCH AS CURTAILING MUNICIPAL WASTE FLOWS INTO RIVERS AND OCEANS REAL SCIENTISTS ARE APPALLED DURING THE RIO SUMMIT 250 SCIENTISTS AMONG WHOM WERE 27 NOBELISTS ISSUED THE HEIDELBERG APPEAL ITS KEY SENTENCE WE ARE WORRIED AT THE DAWN OF THE 21ST CENTURY AT THE EMERGENCE OF AN IRRATIONAL IDEOLOGY WHICH IS OPPOSED TO SCIENTIFIC AND INDUSTRIAL PROGRESS AND IMPEDES ECONOMIC AND SOCIAL DEVELOPMENT ZOOLOGIST DIXY LEE RAY BOTH A SCIENTIST AND A POLITICIAN FORMER GOVERNOR OF WASHINGTON HAS JUST AUTHORED A BOOK WITH TVRADIO COMMENTATOR LOU GUZZO CALLED ENVIRONMENTAL OVERKILL AND SUBTITLED WHATEVER HAPPENED TO COMMON SENSE REGNERY GATEWAY 1995 ITS EXPOSURES OF ECOFRAUD SHOULD BE READ BY EVERYONE WITH AN INTEREST IN RESTORING SCIENTIFIC AND POLITICAL INTEGRITY ON THIS FRONT PAGE 168 CARRIES A ROUGH ESTIMATE BY ECONOMIST WILLIAM J LAFFER III OF HOW MUCH REGULATION COSTS AMERICANS HE PUTS THE MINIMUM AT 10922 PER HOUSEHOLD ANNUALLY OR MORE THAN THE AVERAGE AMOUNT HOUSEHOLDS SHELL OUT FOR FEDERAL TAXES BUT THE PRICE TAG MAY BE AS HIGH AS 20376 HE SAYS FOR SOME PEOPLE MR GORE FOR INSTANCE APOCALYPTIC VISIONS HAVE HAD RICH REWARDS FOR A LOT OF OTHERS PARTICULARLY THE VULNERABLE POOR THEY ARE BECOMING VERY EXPENSIVE SEE RELATED LETTER LETTERS TO THE EDITOR ENVIRONMENTALISM IS GOOD BUSINESS WSJ AUG 6 1993 9307120108 YY93 MM08 9308050158 930805 KMART'S PLAN TO SELL PAYLESS DRUGSTORES COULD SIGNAL START OF A BIG RESTRUCTURING BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL KMART CORP'S PLAN TO SELL ITS PAYLESS DRUGSTORES UNIT COULD MARK THE BEGINNING OF A HUGE CORPORATE RESTRUCTURING THAT MAY REFOCUS THE COMPANY ON ITS TROUBLED DISCOUNT STORES AND JETTISON SOME NONCORE UNITS FOR MUCHNEEDED CASH YESTERDAY KMART CONFIRMED A REPORT IN LATER EDITIONS OF THE WALL STREET JOURNAL THAT THE CONCERN IS TRYING TO SELL THE 560STORE PAYLESS CHAIN THE NATION'S SECONDLARGEST RETAILER DECLINED TO COMMENT ON THE PRICE IT IS SEEKING WHICH PEOPLE FAMILIAR WITH THE SITUATION SAY IS AS MUCH AS 1 BILLION BUT THE TROY MICH COMPANY WHICH PREVIOUSLY HAD SAID IT WAS CONSIDERING SELLING MINORITY INTERESTS IN ONE OR MORE OF ITS SPECIALTYSTORE CHAINS DIDN'T DENY THAT A BROAD RESTRUCTURING IS IN THE WORKS WE CONTINUE TO STUDY OTHER WAYS TO ENHANCE SHAREHOLDER VALUE CHAIRMAN JOSEPH E ANTONINI SAID IN A STATEMENT THE NEWS SENT KMART UP 1 OR 48 TO CLOSE AT 21625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING WHERE IT WAS THE VOLUME LEADER HOWEVER ANALYSTS SAID THE STOCK WOULD HAVE RISEN MORE IF KMART HAD ANNOUNCED A MORE AGGRESSIVE DIVESTITURE PROGRAM THE MARKET RECOGNIZES THAT KMART NEEDS TO STREAMLINE RADICALLY NOT JUST SLIGHTLY SAID MARGO MCGLADE AN ANALYST WITH PAINEWEBBER THAT COULD MEAN THE SALE OF KMART'S LOSSMAKING PACE MEMBERSHIP WAREHOUSE INC UNIT BACK TO PACE MANAGEMENT AN OPTION THAT ONE FORMER KMART OFFICIAL FAMILIAR WITH THE SITUATION SAID IS BEING CONSIDERED PACE AND ITS COMPETITORS WHICH SELL GENERAL MERCHANDISE AND FOOD HAVE SUFFERED LATELY BECAUSE SOME MARKETS HAVE TOO MANY STORES CURRENTLY HOWEVER PAYLESS APPEARS TO BE THE ONLY UNIT KMART HAS PLACED ON THE BLOCK ACCORDING TO A WALL STREET INVESTOR FAMILIAR WITH THE SITUATION KMART YESTERDAY DECLINED TO COMMENT ON SPECIFIC PLANS FOR PACE AND ITS OTHER SPECIALITY UNITS WHICH INCLUDE BUILDERS SQUARE HOME IMPROVEMENT STORES SPORTS AUTHORITY SPORTING GOODS SHOPS OFFICEMAX OFFICE SUPPLY STORES AND THE WALDENBOOKS AND BORDERS BOOK CHAINS ANALYSTS SAY KMART NEEDS TO SELL OR SPIN OFF SEVERAL SPECIALTY UNITS TO HELP FUND ITS HALFFINISHED 3 BILLION RENOVATION OF ITS DISCOUNT STORES WHICH CONTINUE TO LOSE GROUND AGAINST WALMART STORES INC KMART'S SPECIALTY UNITS CONTRIBUTED ABOUT 30 OF KMART'S TOTAL 377 BILLION IN SALES IN THE FISCAL YEAR ENDED LAST JAN 27 KMART IS REPOSITIONING ITS WHOLE PORTFOLIO OF COMPANIES SAID WALTER LOEB A VETERAN RETAIL ANALYST A KMART SPOKESMAN SAID PROCEEDS FROM THE PLANNED PAYLESS SALE WOULD PAY DOWN SHORTTERM DEBT AND GIVE KMART GREATER FINANCIAL FLEXIBILITY WITH RESPECT TO FUNDING THE RENEWAL PROGRAM BUT HE SAID IT'S ABSOLUTELY ABSURD TO SUGGEST THAT KMART COULDN'T FINISH THE RENOVATION WITHOUT THE EXTRA CASH HE ADDED THAT PAYLESS PURCHASED IN 1985 NO LONGER FITS KMART'S BUSINESS MIX MERRILL LYNCH & CO IS CONDUCTING THE AUCTION OF PAYLESS AND IS LOOKING TO BOTH RETAIL BUYERS AND LEVERAGEDBUYOUT SPECIALISTS ON WALL STREET ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION SHAREHOLDERS HAVE BEEN CALLING FOR KMART TO SHED ITS NONCORE UNITS WHICH THEY BELIEVE ARE UNDERVALUED THE SALE OF PAYLESS WOULD BE A STEP IN THAT DIRECTION KMART'S DIVERSIFICATION STRATEGY WHICH WAS BEGUN IN THE EARLY 1980S WAS CENTRAL TO ITS PLAN TO COPE WITH THE SLOWING GROWTH OF ITS DISCOUNTSTORE CHAIN BUT IN THE PROCESS ANALYSTS SAID KMART LOST TRACK OF THE DISCOUNT STORES AFTER BENTONVILLE ARKBASED WALMART ZOOMED TO THE TOP SPOT IN RETAILING KMART IN 1990 LAUNCHED A MASSIVE RENOVATION PROGRAM TO TRY TO BRING ITS DOWDY CLUTTERED STORES UP TO DATE WITH WALMART'S HOWEVER KMART'S EARNINGS ESSENTIAL TO FUNDING THE RENOVATION HAVE BEEN MUCH LOWER THAN THE CONCERN EXPECTED FIRSTQUARTER RESULTS WERE DISAPPOINTING AND THE COMPANY HAS SAID EARNINGS IN BOTH THE FISCAL SECOND QUARTER ENDED JULY 28 AND THE CURRENT FISCAL YEAR WILL BE BELOW THE PREVIOUS YEAR'S IN LAST YEAR'S SECOND QUARTER KMART EARNED 168 MILLION OR 37 CENTS A SHARE IN ALL OF 1992 IT EARNED 941 MILLION OR 206 A SHARE POOR RESULTS AT KMART'S TROUBLED PACE UNIT ARE A FACTOR BUT A BIGGER CONCERN IS THAT THE UPGRADED DISCOUNT STORES KMART HAS FINISHED RENOVATING ABOUT HALF ITS 2412 STORES AREN'T GENERATING THE RETURNS THAT MAJOR DEBTRATINGS AGENCIES AND ANALYSTS HAVE BEEN EXPECTING EARLIER THIS YEAR MOODY'S INVESTOR SERVICES INC DOWNGRADED KMART'S DEBT RATING AND STANDARD & POOR'S CORP REVISED ITS OUTLOOK ON THE COMPANY TO NEGATIVE FROM STABLE EFFECTIVELY PRESSURING KMART TO IMPROVE ITS CASH FLOW ANALYSTS HAD BEEN EXPECTING KMART TO SELL PAYLESS WHICH IS WELLRUN BUT DOESN'T HAVE A LOT OF GROWTH POTENTIAL IN THE INCREASINGLY CROWDED DRUGSTORE INDUSTRY PAYLESS HAS BEEN ONE OF KMART'S MOST CONSISTENT AND PROFITABLE INVESTMENTS TURNING IN DOUBLEDIGIT OPERATING PROFIT GROWTH IN THE PAST TWO YEARS THE PACE UNIT ON THE OTHER HAND HAS BEEN AN EMBARRASSMENT AND A DRAG ON EARNINGS BECAUSE OF OVERCROWDING IN THE WAREHOUSE INDUSTRY AND ITS OWN INEFFICIENCIES PACE'S OPERATING PROFIT IN THE FISCAL YEAR ENDED JAN 27 PLUNGED 92 KMART WHICH BOUGHT PACE IN 1989 FOR 332 MILLION IS CONSIDERING SELLING PACE TO MANAGEMENT AT A LOSS ACCORDING TO THE FORMER KMART OFFICIAL BUT SOME ANALYSTS SAID KMART MIGHT INSTEAD CHOOSE TO CLOSE UNPROFITABLE STORES AND TRY NEW MERCHANDISING TO GET PACE BACK INTO SHAPE FOR A LATER SALE ANALYSTS SAY KMART MAY BE WAITING TO SELL MINORITY STAKES IN OTHER UNITS SUCH AS BUILDERS SQUARE OR SPORTS AUTHORITY TO THE PUBLIC UNTIL IT CAN GET BETTER MARKET VALUATIONS FOR THEM THOSE UNITS DIDN'T FARE VERY WELL IN THE LATEST QUARTER WHEN SALES AT STORES OPEN AT LEAST A YEAR DECLINED 41 AND 21 RESPECTIVELY BUT EVEN IF KMART SHEDS MANY OF ITS SPECIALTY BUSINESSES ANALYSTS SAID THE COMPANY STILL NEEDS TO IMPROVE RESULTS AT ITS DISCOUNT STORES THE MARKETPLACE IS NOT GOING TO ACCORD KMART A HIGHER VALUATION UNTIL IT GETS THE CORE BUSINESS GOING AGAIN SAID L WAYNE HOOD AN ANALYST AT PRUDENTIAL SECURITIES RANDALL SMITH CONTRIBUTED TO THIS ARTICLE 9308050157 930805 BLUE CROSS BENEFITS TO COVER GAY PEOPLE ONTARIO AGENCY RULES TORONTO IN A RULING THAT COULD APPLY TO ALL EMPLOYERS AND INSURERS IN THE PROVINCE AN ONTARIO GOVERNMENT AGENCY ORDERED THE PROVINCIAL BLUE CROSS TO INCLUDE GAY AND LESBIAN PARTNERS IN ITS BENEFIT PLANS THE ORDER ALSO REQUIRES BLUE CROSS TO DELETE THE TERM OF THE OPPOSITE SEX FROM ITS POLICIES WHEN DEFINING SPOUSES OR OTHER DEPENDENTS A BLUE CROSS SPOKESMAN SAID THE NONPROFIT INSURANCE COMPANY WILL APPEAL THE RULING IN THE PROVINCIAL COURTS THE RULING WAS MADE BY A PANEL OF THE ONTARIO HUMAN RIGHTS COMMISSION IN DECIDING A COMPLAINT BROUGHT BY A NURSE WHO CONSIDERS ANOTHER WOMAN TO BE HER SPOUSE SHE COMPLAINED OF DISCRIMINATION BECAUSE THE HOSPITAL WHERE SHE WORKED DIDN'T EXTEND DEPENDENT HEALTH BENEFITS TO HER COMPANION THE PANEL ORDERED THE HOSPITAL TO PAY 4000 CANADIAN DOLLARS US 3100 TO THE NURSE AS COMPENSATION IT INSTRUCTED BLUE CROSS THAT NO EMPLOYEEBENEFIT PLAN BE OFFERED IN THE PROVINCE OF ONTARIO WHICH LIMITS COMMONLAW CONJUGAL BENEFITS TO PERSONS OF THE OPPOSITE SEX ALTHOUGH THE ORDER APPLIES SPECIFICALLY TO BLUE CROSS IT OPENS THE WAY FOR OTHER HOMOSEXUALS TO SEEK SIMILAR ORDERS AGAINST THEIR EMPLOYERS AND INSURERS THIS IS VERY BROAD IT ESSENTIALLY POUNDS IT INTO THE HEADS OF EMPLOYERS THAT YOU'D BETTER LOOK AT ALL YOUR BENEFITS AND NOT JUST PENSIONS FOR INSTANCE BUSINESS TRIPS THAT INCLUDE SPOUSES SAID JOLANTA MOROWICZ A LAWYER WITH THE WILLIAM M MERCER LTD BENEFITSCONSULTING FIRM IN TORONTO I THINK IT GOES FURTHER THAN ANYTHING I'VE SEEN IN THE UNITED STATES SAID BILL BROSSMAN A LAWYER IN MERCER'S SAN FRANCISCO OFFICE THE APPEAL PLANNED BY BLUE CROSS COULD DELAY OR REVERSE THE HUMAN RIGHTS COMMISSION'S RULING A BLUE CROSS SPOKESMAN NOTED THAT THE COMMISSION OPERATES UNDER A PROVINCIAL HUMAN RIGHTS CODE THAT EXPLICITLY DEFINES MARRIED COUPLES AS PERSONS OF THE OPPOSITE SEX 9308050156 930805 TECHNOLOGY MICROSOFT IN CHANGE OF STRATEGY SEEKS MINORITY STAKES IN MULTIMEDIA VENTURES BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL REDMOND WASH IN A DEPARTURE FROM PAST STRATEGY MICROSOFT CORP PLANS TO BECOME A MINORITY INVESTOR IN MANY MULTIMEDIA VENTURES WILLIAM GATES III CHAIRMAN SAID AT A NEWS BRIEFING MICROSOFT HAS STRUCK NUMEROUS ALLIANCES IN DEVELOPING SOFTWARE FOR THE PERSONALCOMPUTER INDUSTRY GENERALLY AVOIDING DIRECT EQUITY INVESTMENTS IN PARTNERS BUT THE CONCERN WILL BE IN ALL SORTS OF MINORITYOWNED VENTURES MR GATES SAID AS THE COMPUTER INDUSTRY TELECOMMUNICATIONS PUBLISHING ENTERTAINMENT AND OTHER INDUSTRIES CONVERGE ON INTERACTIVE TV AND OTHER MULTIMEDIA OPERATIONS MR GATES ALSO SAID HIS WELLPUBLICIZED TALKS WITH THE TWO BIGGEST US CABLE OPERATORS TELE COMMUNICATIONS INC AND TIME WARNER INC TO FORM A VENTURE KNOWN AS CABLESOFT HAVEN'T RESULTED IN ANY AGREEMENT THE VENTURE WOULD TRY TO PROMOTE STANDARDS FOR INTERACTIVE TV AND RELATED SOFTWARE RUMORS OF A DEAL HAVE DRAWN THE OPPOSITION OF OTHER SOFTWARE CABLE AND COMPUTER COMPANIES WHO FEAR BEING FROZEN OUT OF THE FUTURE INTERACTIVE TV MARKET BUT SO FAR WE DON'T HAVE A DEAL WITH ANY OF THE CABLE OR PHONE COMPANIES MR GATES SAID MR GATES HINTED HE IS AMENABLE TO NEGOTIATING AN AGREEMENT THAT WOULD BE MORE OPEN TO ALL COMPETITORS SAYING HE HAS MET WITH EVERY ONE OF THE 10 LARGEST CABLE COMPANIES AND ALL THE MAJOR TELECOMMUNICATIONS CONCERNS MR GATES CONCEDED THERE'S NO DOUBT WE COULD BOMB IN TRYING TO GAIN A MAJOR SHARE IN THESE MARKETS BUT HE ADDED THAT HE REMAINS VERY OPTIMISTIC MICROSOFT COULD GET HISTORIC RATES OF REVENUE GROWTH BY TAKING ADVANTAGE OF OPPORTUNITIES CREATED BY THE SOCALLED DIGITAL HIGHWAY AND BY SELLING NEW KINDS OF SOFTWARE TO LARGE ORGANIZATIONS BASED ON THE COMPANY'S NEW WINDOWS NT OPERATING SYSTEM MICROSOFT OFFICIALS WARNED ANALYSTS LAST WEEK THAT REVENUE FOR ITS FIRST QUARTER ENDING SEPT 30 WON'T MATCH THE 27 GROWTH ACHIEVED IN THE FOURTH QUARTER MAINLY BECAUSE OF FEWER NEW PRODUCT INTRODUCTIONS OFFICIALS ALSO SAID THAT MICROSOFT IS PRODUCING MORE PRODUCTS WITH NARROWER PROFIT MARGINS AND THAT DEMAND IN EUROPE IS WEAK MR GATES WOULDN'T COMMENT ON THE JUSTICE DEPARTMENT'S DECISION TO REVIEW THE FEDERAL TRADE COMMISSION'S INVESTIGATION OF MICROSOFT FOR POSSIBLE UNFAIR TRADE PRACTICES THE FTC HAS DEADLOCKED ON WHETHER TO PURSUE THE CASE BUT HE SAID MICROSOFT HAS ASKED BOTH THE FTC AND THE JUSTICE DEPARTMENT ABOUT THE LATTER'S INTEREST IN THE MATTER AND RECEIVED NO REPLY 9308050155 930805 FINANCING BUSINESS CITIZENS UTILITIES CO CITIZENS UTILITIES CO STAMFORD CONN THIS DIVERSIFIED UTILITY COMPANY DECLARED A 2FOR1 STOCK SPLIT ON BOTH ITS SERIES A AND SERIES B COMMON STOCK THE SPLITS ARE PAYABLE AUG 31 TO SHAREHOLDERS OF RECORD AUG 16 AS OF AUG 3 THE COMPANY HAD 647 MILLION SERIES A SHARES OUTSTANDING AND 24 MILLION SERIES B SHARES OUTSTANDING 9308050154 930805 DIVIDENDS MEDICAL RESOURCES INC MEDICAL RESOURCES INC OF CLIFTON NJ DECLARED A 3FOR2 STOCK SPLIT IN THE FORM OF A 50 DIVIDEND WHICH WILL BE PAID AUG 19 TO SHAREHOLDERS OF RECORD AUG 9 STOCK OF THIS DIAGNOSTIC IMAGING COMPANY SLIPPED 75 CENTS TO 375 IN OVERTHECOUNTER TRADING YESTERDAY 9308050153 930805 DIVIDENDS LYDALL INC LYDALL INC MANCHESTER CONN DECLARED A 3FOR2 SPLIT OF ITS COMMON STOCK PAYABLE SEPT 15 TO STOCK OF RECORD AUG 18 THE MAKER OF FIBERBASED MATERIALS CURRENTLY HAS 55 MILLION SHARES OUTSTANDING 9308050152 930805 INTERNATIONAL HSBC'S MIDLAND UNIT IN UK HAS BIG RISE IN FIRSTHALF EARNINGS LONDON ONE YEAR AFTER ITS TAKEOVER BY HSBC HOLDINGS PLC BRITAIN'S MIDLAND BANK PLC IS REAPING THE BENEFITS OF BEING PART OF A GIANT WORLDWIDE BANKING GROUP IN THE FORM OF SHARPLY HIGHER EARNINGS ON ITS TREASURY AND CAPITAL MARKETS OPERATIONS UNVEILING A MORETHANSIXFOLD INCREASE IN EARNINGS FOR THE FIRST HALF OF 1993 MIDLAND ALSO SAID IT WAS WINNING BACK CLIENTS IN ITS BRITISH DOMESTIC BANKING BUSINESS REVERSING THE DECLINE OF THE LAST FEW YEARS UNDER HSBC THE PARENT COMPANY OF HONGKONG & SHANGHAI BANKING CORP MIDLAND HAS BEEN INTEGRATED INTO A BANKING NETWORK STRETCHING FROM ASIA TO THE US WHERE HSBC OWNS MARINE MIDLAND CORP A REGIONAL COMMERCIAL BANK IN NEW YORK MIDLAND CHAIRMAN SIR PETER WALTERS SAID ONE RESULT HE ADDED HAS BEEN TO ENABLE MIDLAND TO SPEND SIGNIFICANT SUMS OF MONEY ON SPRUCING UP ITS BRANCHES AND NEW ADVERTISING CAMPAIGNS UNTIL LAST YEAR WHEN HSBC WON CONTROL OF MIDLAND IN AN ACRIMONIOUS TAKEOVER BATTLE WITH LLOYDS BANK PLC THERE HAD BEEN SERIOUS DOUBTS ABOUT WHETHER THE BANK ONCE THE WORLD'S BIGGEST WOULD SURVIVE MIDLAND IS NOW WELL POSITIONED TO TAKE ADVANTAGE OF ANY IMPROVEMENT IN THE DOMESTIC UK MARKET AND ACTIVELY PURSUING GOOD LENDING PROPOSITIONS SIR PETER SAID IN PARTICULAR HE CITED THE BANK'S STRONG 11 RISK ASSET RATIO UP FROM 10 ONE YEAR AGO WITH A CUSHION OF MORE THAN THREE PERCENTAGE POINTS ABOVE INTERNATIONALLY ACCEPTED MINIMUM RATIOS OF 8 HE SAID THIS WAS EVIDENCE THAT MIDLAND WOULD BE ABLE TO EXPAND ITS LOAN BUSINESS WITHOUT DIFFICULTY EARNINGS FOR THE FIRST HALF OF 1993 JUMPED TO 385 MILLION 5784 MILLION FROM 60 MILLION IN THE FIRST HALF OF 1992 MIDLAND PAID A DIVIDEND OF 50 MILLION TO HSBC OPERATING PROFIT BEFORE PROVISIONS FOR BAD AND DOUBTFUL DEBTS ROSE 89 TO 654 MILLION 9308050151 930805 WHO'S NEWS INTELOGIC TRACE INC INTELOGIC TRACE INC SAN ANTONIO MARTIN J LANDON WAS NAMED CHIEF FINANCIAL OFFICER OF THIS COMPUTERSERVICES CONCERN THE 33YEAROLD MR LANDON FORMERLY THE COMPANY'S CONTROLLER SUCCEEDS BIANCA RHODES WHO LEFT THE COMPANY IN APRIL MR LANDON JOINED INTELOGIC IN 1987 FOLLOWING A STINT AT ARTHUR ANDERSEN HE HAS BEEN ACTING CHIEF FINANCIAL OFFICER SINCE MS RHODES'S DEPARTURE 9308050150 930805 TRADE MINISTERS GATHER FOR FINAL' NAFTA TALKS WASHINGTON TRADE MINISTERS FROM THE US MEXICO AND CANADA GATHERED HERE FOR WHAT THEY HOPED WOULD BE THE FINAL ROUND OF NEGOTIATIONS OVER SIDEAGREEMENTS TO THE NORTH AMERICAN FREE TRADE AGREEMENT ALTHOUGH DISCUSSIONS ARE SCHEDULED TO END TODAY THEY MAY STRETCH LONGER DEPENDING ON THE RATE OF PROGRESS THEY'RE GOING TO NEGOTIATE UNTIL THEY FINISH IT SAID A US OFFICIAL NEGOTIATIONS STEM FROM A CAMPAIGN PROMISE MADE BY PRESIDENT CLINTON TO TIGHTEN PROVISIONS OF NAFTA CONCERNING ENVIRONMENTAL AND LABOR STANDARDS IN ADDITION THE US AND MEXICO ARE TRYING TO WORK OUT FUNDING MECHANISMS TO FINANCE ENVIRONMENTAL CLEANUP ALONG THE BORDER THE MAJOR DISAGREEMENT CONCERNS ENFORCEMENT THE US INSISTS ON RETAINING THE RIGHT TO IMPOSE TRADE SANCTIONS IF AN ARBITRATION PANEL RULES THAT MEXICO OR CANADA HASN'T ENFORCED THEIR ENVIRONMENTAL OR LABOR LAWS THE OTHER TWO NAFTA COUNTRIES REJECT THAT DEMAND ARGUING THAT SANCTIONS WOULD VIOLATE THEIR NATIONAL SOVEREIGNTY AND OPEN THE DOOR FOR PROTECTIONIST CLAIMS BY UNIONS AND UNCOMPETITIVE INDUSTRIES 9308050149 930805 CANADIAN BANKRUPTCIES DOWN OTTAWA CANADIAN BANKRUPTCIES FELL 158 IN JUNE TO 5666 FROM 6733 A YEAR EARLIER THE FEDERAL CONSUMER AND CORPORATE AFFAIRS DEPARTMENT SAID INDIVIDUAL BANKRUPTCIES TOTALED 4668 BUSINESS BANKRUPTCIES WERE 998 9308050148 930805 TECHNOLOGY SUMITOMO CHEMICAL SEEKS ALTERNATIVE RESIN SUPPLY TOKYO SUMITOMO CHEMICAL CO OF JAPAN SAID IT IS STILL LOOKING FOR ALTERNATIVE SUPPLIES TO MEET DEMAND FOR EPOXY RESIN USED IN COMPUTER MEMORY CHIPS SUMITOMO THE LARGEST SUPPLIER OF THE SPECIAL RESIN HELD ABOUT 50 OF THE MARKET BEFORE AN EXPLOSION IN EARLY JULY DESTROYED ITS PLANT SENDING MEMORYCHIP PRICES SOARING ON THE SPOT MARKET THE SPOT MARKET COMPRISES ABOUT 5 OF ALL MEMORY CHIPS CALLED DYNAMIC RANDOMACCESS MEMORIES MOST COMPUTER MAKERS HAVE LONGTERM SUPPLY CONTRACTS FOR THE CHIPS WHEN SUMITOMO'S CURRENT INVENTORIES RUN OUT AFTER AUGUST SUPPLY ARRANGEMENTS WITH NIPPON KAYAKU CO AND DAINIPPON INK & CHEMICALS INC AND CHANG CHUN PLASTICS OF TAIWAN WILL ALLOW IT TO MEET 50 TO 60 OF ITS USUAL MONTHLY SALES OF THE SOPHISTICATED PLASTIC RESIN USED TO ENCASE CHIPS SUMITOMO HASN'T YET RESOLVED HOW TO MEET THE REST OF DEMAND ACCORDING TO THE SPOKESMAN A SPOKESMAN FOR DOW CHEMICAL CO'S JAPANESE UNIT SAID IT IS TALKING TO SUMITOMO ABOUT POSSIBLY PROVIDING LONGTERM SUPPLIES DOW CHEMICAL COULD USE A MOTHBALLED PLANT IN FREEPORT TEXAS THAT STOPPED MAKING THE RESIN IN 1991 9308050147 930805 CANADA POSTS 7108 BOND YIELD OTTAWA THE CANADIAN GOVERNMENT REPORTED AN AVERAGE YIELD OF 7108 AT AN AUCTION OF 18 BILLION CANADIAN DOLLARS US14 BILLION OF 75 BONDS DUE DEC 1 2003 THE PRICE EQUIVALENT OF THE AVERAGE YIELD WAS 102812 THE PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9308050146 930805 MARSH & MCLENNAN PURCHASES NEW YORK MARSH & MCLENNAN COS SAID ITS WILLIAM M MERCER COS UNIT ACQUIRED DE MONTIGNY WOERNER LIMITADA AND MW SAUDE LIMITADA TWO BRAZILIAN CONSULTING FIRMS TERMS WEREN'T DISCLOSED 9308050145 930805 WHO'S NEWS MODAMI SERVICES INC MODAMI SERVICES INC BOCA RATON FLA PAUL KRAVITZ 62 YEARS OLD TOOK ON THE ROLE OF CHIEF FINANCIAL OFFICER OF THIS MANUFACTURER OF DEHYDRATED FOOD MR KRAVITZ WHO RETAINS THE PRESIDENCY OF THE COMPANY SUCCEEDS DAVID LOBEL 51 WHO RESIGNED TO WORK IN HIS FAMILY'S FURNITURE AND FLOWER BUSINESSES MICHAEL SALIT 50 TOOK ON THE SECRETARYTREASURER TITLE FROM MR LOBEL WHILE RETAINING HIS POSTS AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR LOBEL COULDN'T BE REACHED FOR COMMENT 9308050144 930805 INTERNATIONAL VISA SEES EXPLOSION IN CREDIT CARD USE AMONG CHINESE BY MIRIAM JORDAN STAFF REPORTER OF THE WALL STREET JOURNAL FLUSH WITH ECONOMIC PROSPERITY THE CHINESE ARE FAST CATCHING UP WITH THE WESTERN APPETITE FOR PLASTIC MONEY VISA INTERNATIONAL REPORTS THE NUMBER OF CARDHOLDERS IN CHINA ALMOST QUADRUPLED IN THE LAST YEAR AND GROWTH IS EXPECTED TO REMAIN FAST IN THE YEAR ENDED MARCH 31 THE NUMBER OF VISA LOCALCURRENCY HOLDERS SOARED TO 19 MILLION FROM 481600 A YEAR EARLIER MEANWHILE THE VALUE OF PURCHASES MADE WITH THE LOCALCURRENCY CARDS OR RENMINBI CARDS MORE THAN QUADRUPLED TO 93 BILLION FROM 215 BILLION IN THAT PERIOD CHINA IS LIKELY TO BECOME THE BIGGEST MARKET FOR CHARGE CARDS IN THE ASIAPACIFIC WITHIN 10 YEARS ACCORDING TO RAY CHAN REGIONAL GENERAL MANAGER FOR VISA INTERNATIONAL THERE ARE 12 BILLION PEOPLE HE SAYS ONE PERCENT OF THAT IS A HUGE MARKET ALREADY VISA INTERNATIONAL PREDICTS THAT THROUGH THE END OF 1993 MORE THAN 22 MILLION CHINESE WILL BUY 121 BILLION IN GOODS AND SERVICES WITH ITS CARDS FOR A WORKING POPULATION OF 584 MILLION THAT'S STILL A DROP IN THE BUCKET ECONOMISTS SAY BUT IT'S COMING FROM A HUGE BASE AND IT WILL KEEP GROWING SAYS CLINT LAURENT DIRECTOR OF ASIA MARKET INTELLIGENCE LTD A REGIONAL MARKETING RESEARCH COMPANY ECONOMISTS DON'T EXPECT RECENT AUSTERITY MEASURES IMPOSED TO COOL THE OVERHEATED ECONOMY TO QUELL THE SPENDING SPREE EITHER WITH REAL INCOME RISING ANNUALLY BY DOUBLEDIGIT PERCENTAGES MILLIONS OF CHINESE ARE MOVING UP FROM A LOWERCLASS TO A MIDDLECLASS LIFESTYLE THEY'RE GOING FROM A SITUATION OF JUST HAVING ENOUGH MONEY TO FEED AND CLOTHE THEMSELVES TO HAVING SOME MONEY LEFT OVER TO BUY A PAIR OF RUNNING SHOES MR LAURENT SAYS VISA INTERNATIONAL IS INVESTING MILLIONS OF DOLLARS ON MARKETING AND COMPUTER LINKS WITH CHINA SEVEN STATEBACKED BANKS CURRENTLY ISSUE ITS CARDS IN CHINA A SPOKESMAN FOR AMERICAN EXPRESS CO'S AMERICAN EXPRESS INTERNATIONAL INC SAID THE COMPANY HAS NO IMMEDIATE PLANS TO ISSUE A LOCAL CURRENCY CARD IN CHINA BUT IS EXPLORING MANY OPPORTUNITIES THERE AS ONE HONG KONG ECONOMIST PUTS IT THERE'S STILL A LOT OF MONEY UNDER THE MATTRESS READY TO POP OUT 9308050143 930805 INTERNATIONAL YEN'S RUNUP DESPITE POLITICAL CRISIS UNDERSCORES JAPAN'S TRADING STRENGTH BY QUENTIN HARDY AND YUMIKO ONO STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO WHY IN THE MIDST OF JAPAN'S GREATEST POLITICAL INSTABILITY AND ITS WORST ECONOMIC SLUMP IN DECADES ARE PEOPLE RUSHING TO BUY YEN THE EUROPEAN CURRENCY CRISIS OF LAST WEEK SENT THE YEN SURGING TO A RECORD HIGH OF 10407 YEN AGAINST THE DOLLAR ON TUESDAY TRADERS AGAIN ARE TALKING ABOUT THE EVENTUAL ARRIVAL OF PARITY BETWEEN THE TWO CURRENCIES OR A RATE OF 100 YEN TO THE DOLLAR PARITY WOULD REPRESENT A MILESTONE IN JAPAN'S TREMENDOUS ECONOMIC POSTWAR EXPANSION ON TUESDAY A JAPANESE NEWSCASTER HELD UP A DOLLAR BILL IN ONE HAND AND A JAPANESE 100YEN COIN IN THE OTHER AND TOLD VIEWERS THAT IT LOOKS LIKE THE TWO WILL SOON BE EQUAL IN VALUE THE RUNUP COMES AT AN ODD TIME IN POLITICS THE LIBERAL DEMOCRATS APPEAR TO HAVE LOST THEIR 40YEAR GRIP ON POWER TO AN UNSTABLE COALITION THE ECONOMY REMAINS WEAK AND JAPAN'S RELATIONS WITH ITS BIG TRADING PARTNERS ARE TENSE WHY SHOULD PEOPLE SEE THE YEN AS A HAVEN JAPAN ISN'T ACTUALLY A HAVEN SAYS TOMOKO FUJII ECONOMIST AT SALOMON BROTHERS ASIA LTD IT'S JUST BETTER THAN EUROPE WHERE THE ECONOMY IS IN MUCH WORSE SHAPE CURRENCY TRADERS ARE FOCUSING ON JAPAN'S TRADE SURPLUS WHICH IS EXPECTED TO REMAIN LARGE AND SHOULD THEREFORE CONTINUE TO PUSH UP THE YEN'S VALUE ON WEDNESDAY THE FINANCE MINISTRY REPORTED THAT JAPAN'S CURRENT ACCOUNT OR ITS TRADE IN GOODS AND SERVICES WAS IN SURPLUS BY 1071 BILLION YEN IN JUNE UP 14 FROM A YEAR AGO FOREIGN NATIONS' HUGE APPETITE FOR JAPANESE GOODS MEANS THAT FOREIGN BUYERS HAVE A CORRESPONDINGLY BIG NEED FOR YEN TO PAY FOR THOSE GOODS THAT DEMAND FOR YEN MAKES THE JAPANESE CURRENCY MORE VALUABLE RELATIVE TO THE DOLLAR AND OTHER CURRENCIES THE FOREIGNEXCHANGE MARKETS DON'T LOOK AT ECONOMIC GROWTH OR POLITICS SAYS SOICHI ENKYO ECONOMIST AT BANK OF TOKYO LTD THEY LOOK AT TRADE IN ADDITION JAPAN HAS RELIABLY LOW INFLATION AND THE NEXT GOVERNMENT IS LIKELY TO REMAIN PROBUSINESS ADD IT ALL UP AND JAPAN'S YEN SEEMS LIKE A RELATIVELY SURE BET AND SO TRADERS HAVE BID UP THE CURRENCY TO WEDNESDAY'S TOKYO CLOSE OF 10485 YEN FROM 10668 YEN AT THE END OF JULY 26 THE CURRENCY CLOSED AT 12465 ON THE LAST DAY OF 1992 ANALYSTS SAY THE YEN MAY WELL REACH 100 YEN TO THE DOLLAR WITHIN THE NEXT FEW MONTHS THE YEN'S APPRECIATION IS JUST WHAT THE CLINTON ADMINISTRATION WANTED IF THE YEN IS DEARER AND THE DOLLAR WEAKER GOES THE REASONING JAPANESE GOODS WILL COST MORE FOR AMERICANS TO BUY AND US GOODS WILL COST LESS IN JAPAN THUS THE US TRADE DEFICIT WILL BE REDUCED THAT STRATEGY HAS AT LEAST ONE NEGATIVE CONSEQUENCE FOR THE US HOWEVER IT BOOSTS INFLATION BECAUSE US CONSUMERS MUST PAY MORE FOR JAPANESE GOODS SUCH AS VIDEO CAMERAS AND STEREO EQUIPMENT BUT THE YEN'S RISE IS INFLICTING MUCH MORE PAIN ON JAPANESE COMPANIES AND ON JAPAN'S ENTIRE ECONOMY IN A RECENT SURVEY THE JAPAN EXTERNAL TRADE ORGANIZATION FOUND THAT JUST 21 OF 527 JAPANESE MANUFACTURERS POLLED SAID THEY CAN MAKE A PROFIT ON EXPORTS IF THE YEN GETS STRONGER THAN 110 TO THE DOLLAR EVERY DAY WE'RE PRAYING THAT THE YEN WILL GO DOWN SAYS A WORRIED SPOKESMAN FOR BANKOKU NEEDLE MANUFACTURING CO THE SEWING NEEDLE MAKER COUNTS ON EXPORTS FOR 30 OF ITS SALES BANKOKU SAYS IT CAN ONLY MAKE MONEY ON OVERSEAS SALES HOWEVER IF THE YEN TRADES AT 125 YEN TO THE DOLLAR OR WEAKER NOW THE COMPANY SAYS IT MAY BE FORCED TO STOP EXPORTING ALTOGETHER BIGGER EXPORTERS ARE SMARTING TOO FOR EVERY ONEYEN INCREASE IN THE YEN'S VALUE AGAINST THE DOLLAR THAT TRANSLATES INTO A BILLIONYEN LOSS OF PRETAX PROFIT SAYS A SPOKESMAN FOR NEC CORP THE MAKER OF COMPUTERS AND SEMICONDUCTORS NEC SAYS IT HAS BEEN FORCED TO RAISE THE EXPORT PRICES OF ITS SEMICONDUCTORS AS MUCH AS 5 THIS YEAR TO HELP COMPENSATE FOR THE HIGHER YEN SOME COMPANIES ARE COPING BY MOVING PRODUCTION OVERSEAS WHERE COSTS ARE CHEAPER MAKITA CORP A MAKER OF TOOLS PLANS TO SHIFT MORE PRODUCTION TO THE US AS QUICKLY AS IT CAN THE COMPANY NOW MAKES IN THE US 55 OF THE TOOLS IT SELLS IN AMERICA IT SAYS IT PLANS TO RAISE THAT RATIO TO 80 BY MARCH THE YEN'S LATEST SURGE COMES AT A BAD TIME FOR THE JAPANESE ECONOMY ON WEDNESDAY THE FORECASTING UNIT OF THE NIHON KEIZAI SHIMBUN JAPAN'S BUSINESS DAILY ESTIMATED THAT THE COUNTRY'S ECONOMY SHRANK AT AN ANNUAL RATE OF 18 IN THE APRILTOJUNE QUARTER GEOFFREY BARKER ECONOMIST AT BARING SECURITIES JAPAN LTD SAYS THAT GIVEN THE DAMAGE THE HIGHER YEN IS INFLICTING ON JAPANESE COMPANIES THE ECONOMY MIGHT GROW JUST 1 IN THE YEAR ENDING MARCH 31 9308050142 930805 CALLNET AND SPRINT ESTABLISH AN ALLIANCE KANSAS CITY MO SPRINT CORP SAID IT FORMED AN ALLIANCE WITH CALLNET ENTERPRISES INC UNDER WHICH SPRINT WILL ACQUIRE 25 OF THE CANADIAN LONGDISTANCE COMPANY FOR ABOUT US47 MILLION AND CALLNET WILL MARKET SERVICES UNDER THE SPRINT NAME THE COMPANIES SAID THE ALLIANCE WILL LET CALLNET WHICH CURRENTLY SERVES SOME 16000 SMALL AND MIDSIZE BUSINESSES EXPAND INTO THE LARGEBUSINESS AND RESIDENTIAL MARKETS AS PART OF THE AGREEMENT SPRINT WILL COLLECT ROYALTIES ON SPRINT PRODUCTS AND SERVICES SOLD IN CANADA OVER THE NEXT 10 YEARS CALLNET WHICH WILL FIRST OFFER CUSTOMERS SPRINT'S THE MOST DISCOUNT CALLING SERVICE WILL GET RIGHTS TO A SIGNIFICANT PART OF SPRINT'S TECHNOLOGY PAOLO GUIDI PRESIDENT OF SPRINT INTERNATIONAL SAID THE ALLIANCE GIVES SPRINT AN OPPORTUNITY TO PARTICIPATE IN THE CANADIAN MARKETPLACE WHICH WE SEE GROWING AT A FAST RATE WITH DEREGULATION CALLNET CANADA'S FOURTH LARGEST LONGDISTANCE COMPANY HOLDS THE NO 2 POSITION IN THE MARKETS IT SERVES ONTARIO QUEBEC AND BRITISH COLUMBIA THE COMPANY HAD 1992 REVENUE OF 83 MILLION CANADIAN DOLLARS US643 MILLION AND ANTICIPATES 1993 REVENUE OF ABOUT C200 MILLION SPRINT STOCK ROSE 50 CENTS OR 14 TO CLOSE AT 36 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 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 9308050141 930805 WHO'S NEWS NOEL GROUP NAMES LAMPHERE CHAIRMAN OF BELDING HEMINWAY NEW YORK NOEL GROUP INC SAID GILBERT H LAMPHERE WAS ELECTED CHAIRMAN OF BELDING HEMINWAY CO ITS THREADS AND SPECIALTY FABRICS UNIT MR LAMPHERE 41 YEARS OLD WILL CONTINUE AS COCHAIRMAN AND CHIEF EXECUTIVE OF NOEL A DIVERSIFIED HOLDING COMPANY HE SUCCEEDS RICHARD D HAUSMAN BELDING HEMINWAY'S CHAIRMAN WHO IS RETIRING IN ADDITION NOEL NAMED GREGORY H CHESKIN PRESIDENT AND CHIEF EXECUTIVE OF BELDING HEMINWAY AND WINTON J TOLLES VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR CHESKIN 50 WAS PREVIOUSLY A CONSULTANT TO A UNIT OF RUDDICK CORP MR TOLLES 41 HAD BEEN AN OFFICER OF THE ACCOUNTING FIRM PAUL SCHERER & CO MR CHESKIN SUCCEEDS MR HAUSMAN 64 WHO IS ALSO BELDING HEMINWAY CHIEF EXECUTIVE AND ROBERT H BROWN PRESIDENT WHO IS RETIRING MR TOLLES ASSUMES THE FINANCIAL OFFICER DUTIES FROM RONALD V KAPLAN 62 WHO WILL CONTINUE AS VICE PRESIDENTTREASURER MR BROWN JACK HAUSMAN LEO HAUSMAN BRUCE HAUSMAN AND MARTIN HAUSMAN ARE RETIRING FROM THE BOARD OF BELDING HEMINWAY THEIR POSTS WON'T BE FILLED 9308050140 930805 INTERNATIONAL FRANCE SET BACK IN EFFORT TO FREE ITS CENTRAL BANK BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS DEALING A NEW BLOW TO FRANCE'S ALREADY BATTERED ECONOMIC STRATEGY THE NATION'S HIGHEST CONSTITUTIONAL BODY STRUCK DOWN KEY PARTS OF A NEW DRAFT LAW GIVING INDEPENDENCE TO THE CENTRAL BANK THE BANQUE DE FRANCE GOVERNMENT OFFICIALS SAID THEY WOULD MAKE ANOTHER ATTEMPT TO INTRODUCE THE LEGISLATION THIS YEAR AFTER THE RULING LATE TUESDAY BY THE CONSTITUTIONAL COUNCIL A REVISED BILL WILL BE SENT TO PARLIAMENT IN THE FALL SESSION AND SHOULD BE ABLE TO TAKE EFFECT BY JAN 1 SAID EDMOND ALPHANDERY FRANCE'S ECONOMY MINISTER THE RULING IS AN EMBARRASSMENT FOR THE CONSERVATIVE GOVERNMENT OF PRIME MINISTER EDOUARD BALLADUR WHICH HAD MADE THE LEGISLATION A PRIORITY WHEN IT TOOK OFFICE IN MARCH THE BANQUE DE FRANCE HAS OFTEN BEEN SUBJECT TO STATE MEDDLING DURING ITS 200YEAR HISTORY BY GIVING IT AUTONOMY AND HANDING IT THE SOLE POWER TO DETERMINE FRENCH MONETARY POLICY THE GOVERNMENT HOPED TO ENHANCE THE CREDIBILITY OF THE NATION'S ANTIINFLATION POLICY AND UNDERPIN THE FRENCH FRANC THE COUNCIL HOWEVER RULED THAT UNDER THE FRENCH CONSTITUTION ONLY THE GOVERNMENT HAS THE RIGHT TO DETERMINE MONETARY POLICY THE RULING IS MORE BAD NEWS FOR MR BALLADUR'S ADMINISTRATION WHICH LAST WEEKEND WATCHED HELPLESSLY AS THE CENTERPIECE OF ITS ECONOMIC POLICY THE LINK OF THE FRENCH FRANC TO THE GERMAN MARK WAS DESTROYED BY FOREIGN EXCHANGE MARKETS BY CONTRAST THE RULING IS A VICTORY FOR LEFTIST OPPONENTS OF THE BILL WHO TOOK THE CASE TO THE COUNCIL AND WHO LARGELY OPPOSED THE GOVERNMENT'S ATTEMPTS TO MAINTAIN THE FRANCMARK LINK THEY HAVE ARGUED THAT THE GOVERNMENT WOULD BE IRRESPONSIBLE TO RELINQUISH CONTROL OF MONETARY POLICY TO AN INDEPENDENT CENTRAL BANK THAT LACKS DEMOCRATIC LEGITIMACY THEY ALSO WANT TO REORIENT POLICY AWAY FROM FIGHTING INFLATION TOWARD THE CREATION OF JOBS THE GOVERNMENT'S SETBACK MAY BE ONLY TEMPORARY HOWEVER LASTING UNTIL THE EUROPEAN COMMUNITY'S MAASTRICHT TREATY ON EUROPEAN UNION TAKES EFFECT THE TREATY STIPULATES THAT ALL 12 EC NATIONS SHOULD BEGIN FROM 1994 TO ESTABLISH INDEPENDENT CENTRAL BANKS AS A PRELUDE TO THE INTRODUCTION OF A SINGLE EUROPEAN CURRENCY ONCE IT HAS BEEN RATIFIED BY ALL EC NATIONS THE MAASTRICHT TREATY WILL OVERRIDE THE FRENCH CONSTITUTION ON THE ISSUE OF BANK INDEPENDENCE THE CONSTITUTIONAL COUNCIL ACKNOWLEDGED SO FAR 11 OF THE 12 EC NATIONS HAVE FORMALLY RATIFIED THE TREATY ONLY GERMANY HASN'T DONE SO 9308050139 930805 TECHNOLOGY HOSPITALS DEVOTE QUARTER OF SPENDING TO ADMINISTRATION WASHINGTON HOSPITALS DEVOTED NEARLY 25 OF THEIR SPENDING TO ADMINISTRATIVE COSTS IN FISCAL 1990 ACCORDING TO A STUDY PUBLISHED IN THE NEW ENGLAND JOURNAL OF MEDICINE THE STUDY WAS CONDUCTED BY STEFFIE WOOLHANDLER DAVID HIMMELSTEIN AND JAMES LEWONTIN ADVOCATES OF A GOVERNMENTFINANCED FEDERALLY RUN HEALTH SYSTEM THEY ANALYZED DATA FOR THE YEAR ENDED SEPT 30 1990 THAT WAS SUBMITTED BY 6400 ACUTECARE HOSPITALS TO MEDICARE THE FEDERAL HEALTH INSURANCE PROGRAM FOR THE POOR AND DISABLED IN A NEWS CONFERENCE HERE MEMBERS OF PHYSICIANS FOR A NATIONAL HEALTH PROGRAM ALSO RELEASED A COMPANION STUDY THAT ESTIMATED ADMINISTRATIVE EXPENSES THIS YEAR WOULD CONSUME 247 CENTS OF EACH HEALTHCARE DOLLAR OR 2323 BILLION SQUEEZING ADMINISTRATIVE EXCESS OUT OF THE HEALTHCARE SYSTEM HAS BEEN ONE OF THE MOST PRESSING QUESTIONS IN THE HEALTHCARE DEBATE PRESIDENT CLINTON'S ADVISERS LED BY HILLARY RODHAM CLINTON ARE COUNTING ON SIGNIFICANT ADMINISTRATIVE SAVINGS IN THE PLAN THEY ARE DRAFTING TO PROVIDE HEALTH COVERAGE TO ALL AMERICANS AND CONTROL HEALTH COSTS BUT EXPERTS DISPUTE HOW MUCH PAPERWORK AND OVERSIGHT CAN BE CUT MOREOVER UNIVERSAL HEALTH COVERAGE DOESN'T GUARANTEE LOW ADMINISTRATIVE COSTS THE STATE WITH THE HIGHEST HOSPITAL ADMINISTRATIVE COSTS ACCORDING TO THE STUDY ON HOSPITAL SPENDING WAS HAWAII THE ONLY STATE IN THE UNION WITH A UNIVERSAL HEALTH PLAN THE STUDIES' AUTHORS ARGUE THAT ADMINISTRATIVE SPENDING CAN BE CUT IN HALF BY ADOPTING A SOCALLED SINGLEPAYER HEALTH SYSTEM SIMILAR TO CANADA'S WHERE THE GOVERNMENT PAYS ALL HEALTH BILLS 9308050138 930805 MONEY FUND YIELDS REMAINED UNCHANGED IN THE LATEST WEEK NEW YORK YIELDS ON TAXABLE MONEY MARKET MUTUAL FUNDS REMAINED UNCHANGED IN THE LATEST WEEK IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS REMAINED AT 268 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER ASSETS OF 607 TAXABLE FUNDS DECREASED BY 743 BILLION TO 46905 BILLION THE NEWSLETTER REPORTED INSTITUTIONAL INVESTORS ACCOUNTED FOR 555 BILLION OF THE OUTFLOW AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS STAYED AT 61 DAYS THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS REMAINED AT 265 IN THE LATEST WEEK THE AVERAGE 30DAY SIMPLE YIELD ALSO REMAINED UNCHANGED AT 264 WHILE THE AVERAGE 30DAY COMPOUND YIELD INCHED UP TO 268 FROM 267 YIELDS ON TAXEXEMPT FUNDS ROSE IN THE LATEST WEEK THE AVERAGE SEVENDAY COMPOUND YIELD CLIMBED TO 211 FROM 191 THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 293 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 306 FOR SOMEONE PAYING 31 IN TAXES ASSETS OF 326 TAXEXEMPT FUNDS DECREASED BY 7281 MILLION TO 10094 BILLION ACCORDING TO MONEY FUND REPORT THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY LENGTHENED BY ONE DAY TO 66 DAYS 9308050137 930805 SUNBEAMOSTER MULLS MOVING HEADQUARTERS FROM PROVIDENCE RI PROVIDENCE RI A SUNBEAMOSTER CO EXECUTIVE SAID THE COMPANY IS CONSIDERING MOVING ITS HEADQUARTERS FROM RHODE ISLAND BUT NO DECISION HAS BEEN MADE AS TO WHERE OR WHEN IT MAY MOVE WE HAVEN'T ISOLATED OUR SEARCH TO ANY ONE CITY AT ALL SAID CHARLES THAYER VICECHAIRMAN HE SAID HE EXPECTS A DECISION IN A MONTH OR TWO THE COMPANY IS CONDUCTING AN ANALYSIS TO DETERMINE IF THERE'S A MORE LOGICAL SITE FOR THE HEADQUARTERS AND IT IS UNLIKELY THE COMPANY WILL DECIDE TO STAY WHERE IT IS HE SAID MR THAYER NOTED THAT THE APPLIANCE MAKER HAS NO MANUFACTURING FACILITIES IN RHODE ISLAND ITS PLANTS ARE SCATTERED THROUGHOUT THE EASTERN US AS WELL AS SOUTH AMERICA SUNBEAMOSTER RELOCATED TO PROVIDENCE FROM PITTSBURGH IN EARLY 1992 THE COMPANY MONDAY NAMED ROGER SCHIPKE AS ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER HE WAS CHAIRMAN AND CEO OF RYLAND GROUP INC A HOME BUILDING AND MORTGAGE FINANCE COMPANY BASED IN MARYLAND 9308050136 930805 DIVIDENDS US HEALTHCARE INC US HEALTHCARE INC A BLUE BELL PENN MANAGED HEALTHCARE SERVICES COMPANY SAID IT RAISED ITS QUARTERLY DIVIDEND ON COMMON STOCK FOR THE THIRD AND FOURTH QUARTERS TO 16 CENTS A SHARE FROM 13 CENTS IT ALSO RAISED THE DIVIDEND ON CLASS B STOCK TO 144 CENTS FROM 117 CENTS THE THIRDQUARTER AND FOURTHQUARTER DIVIDENDS ARE PAYABLE SEPT 23 AND DEC 23 FOR SHAREHOLDERS OF RECORD SEPT 9 AND DEC 9 RESPECTIVELY 9308050135 930805 CFTC FLEXES REGULATORY MUSCLE UNNERVING THE FUTURES INDUSTRY BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO WHEN CONGRESS VOTED LAST YEAR TO LET THE COMMODITY FUTURES TRADING COMMISSION CONTINUE POLICING FUTURES MARKETS TRADERS CELEBRATED THEIR EXCHANGES HAD DEFEATED CRITICS WHO WANTED TO PUT THE HARDNOSED SECURITIES AND EXCHANGE COMMISSION IN CHARGE THEY AREN'T CELEBRATING ANY MORE THE CFTC LONG MALIGNED AS WEAKER THAN THE SEC IS ENACTING SWEEPING RULES THAT TOUGHEN UP THE TOOLS IT USES TO MONITOR FUTURES TRADING AND THE PENALTIES FOR ANYONE WHO CHEATS INVESTORS THESE PROVISIONS GIVE THE COMMISSION NEW TEETH SAYS ANDREA CORCORAN CHIEF OF THE CFTC'S TRADING AND MARKETS DIVISION THEY WILL REQUIRE THE EXCHANGES TO MAKE ADJUSTMENTS IN HOW THEY DO BUSINESS AND DEAL WITH DISCIPLINARY CASES IT'S CERTAINLY NOT BUSINESS AS USUAL EXCHANGE EXECUTIVES AGREE AND THEY AREN'T HAPPY ABOUT IT IT'S MICROMANAGEMENT SAYS JOHN F SANDNER CHAIRMAN OF THE CHICAGO MERCANTILE EXCHANGE THEY'RE GOING WILD BEYOND WHAT CONGRESS TOLD THEM TO DO IN MANY INSTANCES THEY'RE GOING DOWN A PATH THAT IS VERY DESTRUCTIVE TO BUSINESS AND COSTLY TO GOVERNMENT THE RULES ARE THE PRODUCT OF LAST YEAR'S CFTC REAUTHORIZATION BILL WHICH SOUGHT TO HEIGHTEN SCRUTINY OF FUTURES MARKETS AFTER A MASSIVE UNDERCOVER FEDERAL INVESTIGATION OF FRAUD IN THE TWO BIG CHICAGO EXCHANGES IN EFFECT THE RULES INCREASE THE CFTC'S POWER TO ENCROACH ON EXCHANGES' SELFREGULATORY FUNCTIONS WHICH CAME UNDER FIRE AFTER THE 1988 INVESTIGATION SO FAR THE FEDERAL AGENCY HASN'T BEEN SHY ABOUT SHOWING OFF ITS NEW WEAPONS ONE NEW RULE FOR INSTANCE REQUIRES FLOOR TRADERS WHO TRADE FOR THEIR OWN PROFITS TO REGISTER WITH THE CFTC AND BE SUBJECTED TO BACKGROUND CHECKS IN THE PAST ONLY FLOOR BROKERS WHO HANDLE ORDERS FOR INVESTORS HAD TO UNDERGO SUCH SCRUTINY THE CFTC'S ENFORCEMENT DIVISION IS NOW USING THE MEASURE TO TRY TO FORCE SEVEN TRADERS CONVICTED OF TRADINGRELATED FELONIES OFF THE FLOORS OF THE CHICAGO MERC AND CHICAGO BOARD OF TRADE WHAT WAS FOUND IN THE UNDERCOVER INVESTIGATION WAS THAT IT WASN'T JUST FLOOR BROKERS WHO WERE THE PROBLEM BUT ALSO TRADERS WHO WERE HELPING BROKERS CHEAT THEIR CUSTOMERS SAYS DENNIS KLEJNA CHIEF OF ENFORCEMENT FOR THE CFTC NOW IF YOU'VE GOT SOMEBODY WHOSE WRONGDOING IS UNIQUELY ASSOCIATED WITH BEING IN THE TRADING PITS YOU CAN JUST GET HIM OUT OF THAT ENVIRONMENT IN ANOTHER USE OF A NEW RULE THE CFTC RECENTLY ASKED THE CHICAGO MERC TO EXPLAIN ITS EXPANSION OF DAILY PRICEMOVE LIMITS FOR LUMBER FUTURES CONTRACTS DURING A WILD SPRING SWING IN LUMBER PRICES THE NEW RULE COMPELS EXCHANGES TO EXPLAIN SUCH EMERGENCY ACTIONS DIVULGING HOW MEMBERS OF GOVERNING COMMITTEES VOTED ON THEM AND WHETHER THESE MEMBERS MANY OF WHOM ARE TRADERS HAD ANY FINANCIAL STAKE IN THE DECISION IN THE CASE OF THE LUMBERCONTRACT CHANGE THE CFTC FOUND THAT THE STEP WAS A PERMISSABLE RESPONSE TO CONDITIONS IN THE CASH MARKET UNDERLYING THAT CONTRACT AND THAT NO INFORMATION HAS BEEN DEVELOPED THAT WOULD SUGGEST A FINDING OF BAD FAITH ACCORDING TO A REPORT OBTAINED BY THIS NEWSPAPER ONE FACTOR CONTRIBUTING TO THE SURGE OF LATESUMMER CFTC RULEMAKING IS THE IMPENDING DEPARTURE OF WILLIAM P ALBRECHT ACTING CFTC CHAIRMAN WHO IS LEAVING AUG 20 TO TEACH ECONOMICS AT THE UNIVERSITY OF IOWA MR ALBRECHT SAYS HE WANTS THE CFTC TO STICK CLOSELY TO TIMETABLES FOR NEW RULES THAT ARE CONTAINED IN THE CFTC REAUTHORIZATION BILLEVEN THOUGH IT IS UNUSUAL FOR A FEDERAL AGENCY TO MEET ALL ITS CONGRESSIONAL DEADLINES IN A FIRST FOR THE CFTC THE AGENCY'S STAFF IS WRITING AN INSIDERTRADING RULE THAT WILL MAKE IT A FELONY TO TRADE ON THE BASIS OF NONPUBLIC INFORMATION AND IMPOSE A FINE OF AS MUCH AS 500000 FOR SUCH CRIMES THE RULE IS EXPECTED TO BE IN PLACE BY OCT 28 ANOTHER RULE THAT HAS THE FUTURES INDUSTRY SQUAWKING IS A REQUIREMENT THAT EVERY BROKER TRADER AND FIRM THAT IS REGISTERED WITH THE CFTC UNDERGO ETHICS TRAINING I DON'T LIKE IT THAT WE ARE THE ONLY INDUSTRY REQUIRED TO TAKE ETHICS TRAINING SAYS JOHN DAMGARD PRESIDENT OF THE FUTURES INDUSTRY ASSOCIATION OF WASHINGTON DC WHICH HELPED LOBBY CONGRESS FOR PASSAGE OF THE CFTC REAUTHORIZATION BILL THERE'S A COST ASSOCIATED WITH IT AND I DON'T THINK AS AN INDUSTRY THAT WE OUGHT TO BE SINGLED OUT FOR THAT PROBABLY THE MOST COSTLY REGULATIONS ARE THOSE THAT GOVERN EXCHANGE AUDIT TRAILS WHICH ARE MOMENTTOMOMENT RECORDS OF MARKET ACTIVITY THAT INVESTIGATORS USE TO ROOT OUT FRAUD THE CFTC REAUTHORIZATION BILL GIVES EXCHANGES A STRICT 1995 DEADLINE FOR INSTALLING ELECTRONIC TRADEAUDITING EQUIPMENT SUCH AS THE HANDHELD COMPUTERIZED TRADING TERMINALS THAT BOTH CHICAGO EXCHANGES HAVE BEEN DEVELOPING FOR THREE YEARS WE'VE SPENT 6 MILLION ON THAT ALREADY SAYS BOARD OF TRADE CHAIRMAN PATRICK ARBOR GETTING IT DONE BY 1995 WILL COST MILLIONS AND MILLIONS MORE ANOTHER MEASURE INTENDED TO FORCE EXCHANGES TO IMPROVE THEIR ABILITY TO MONITOR TRADES IS A RESTRICTION ON THE PRACTICE OF DUAL TRADING UNDER WHICH FLOOR FUTURES BROKERS BUY AND SELL CONTRACTS FOR INVESTORS AND FOR THEIR OWN ACCOUNTS SIMULTANEOUSLY SOME SAY THE PRACTICE ENCOURAGES BROKERS TO TAKE WINNING TRADES FOR THEMSELVES AND STICK CUSTOMERS WITH LOSERS THE MERC HAS VOLUNTARILY RESTRICTED THE PRACTICE FOR 75 OF THE CONTRACTS IT TRADES BUT OTHER EXCHANGES ALLOW IT IN ALL THEIR TRADING PITS THE NEW RESTRICTION WHICH WILL TAKE EFFECT ON OCT 31 PROBABLY WON'T STAMP OUT DUAL TRADING WHICH MANY EXCHANGE EXECUTIVES SAY ENHANCES THE LIQUIDITY OF FUTURES PITS HOWEVER TO WIN EXEMPTIONS TO THE RESTRICTION EXCHANGES WILL HAVE TO PROVE THAT THEIR TRADEMONITORING CAPABILITY IS 90 ACCURATE OR GETTING CLOSER TO THAT STANDARD FAST ALSO DUE FOR CLOSER SCRUTINY ARE THE POWERFUL ASSOCIATIONS OF FLOOR BROKERS THAT RUN MANY TRADING PITS AT FUTURES EXCHANGES IN CHICAGO AND NEW YORK SUCH ASSOCIATIONS HANDLE TRADES FOR BIG WALL STREET FIRMS SOME OF THE 48 TRADERS WHO WERE INDICTED AFTER THE GOVERNMENT'S 1988 INVESTIGATION BELONGED TO BROKER ASSOCIATIONS ANOTHER NEW REGULATION GIVES THE AGENCY AUTHORITY TO IDENTIFY THESE ASSOCIATIONS AND MONITOR THEIR TRADES SCHEDULED TO TAKE EFFECT NEXT WEEK IS A RULE REQUIRING EXCHANGES TO STOCK THEIR GOVERNING BOARDS AND DISCIPLINARY COMMITTEES WITH PEOPLE FROM OUTSIDE THEIR MARKETS UNDER THE RULE 20 OF BOARD MEMBERS MUST BE NONTRADERS AND 10 MUST BE USERS OF MARKETS WHO AREN'T EXCHANGE MEMBERS CFTC STAFF MEMBERS SAY THIS MEASURE IS INTENDED TO MAKE THE BOARDS OF BIG FUTURES MARKETS MORE LIKE THE BOARD OF THE NEW YORK STOCK EXCHANGE WHICH IS COMPOSED MAINLY OF SECURITIESFIRM EXECUTIVES NOT INDIVIDUAL TRADERS YET EXCHANGE EXECUTIVES DON'T LIKE IT THEY WANT TO CONTROL OUR BOARD SAYS MR SANDNER WE NOW HAVE 32 MEMBERS ON OUR BOARD 24 OF WHOM ARE ELECTED BY THE MEMBERS WE COULD END UP WITH A BOARD OF 40 OR 45 PEOPLE TO MEET ALL THESE REQUIREMENTS BEFORE THE CFTC IS DONE COMMISSION PROVIDES FOR FINE OF 500000 PLUS ANY ILLGOTTEN TRADING PROFITS REGISTER WITH CFTC BUT NOW FLOOR TRADERS WHO TRADE FOR OWN PROFIT WILL HAVE TO REGISTER AND BE SUBJECTED TO BACKGROUND CHECKS THIS NEW RULE HAS ALREADY BEEN USED IN ATTEMPT TO DENY REGISTRATION TO CONVICTED FELONS ASSOCIATIONS THAT RUN MANY TRADING PITS REQUIRES IDENTIFICATION OF GROUPS OF BROKERS WITH COOPERATIVE RELATIONSHIPS ALLOWS CLOSER SCRUTINY OF THEIR TRADES ON EXCHANGE BOARDS AND DISCIPLINARY COMMITTEES PRESCRIBES QUOTAS FOR BOARD COMPOSITION OF 20 NONTRADERS AND 10 OUTSIDE MARKET USERS TRADING IN WHICH FLOOR BROKERS TRADE FOR THEMSELVES AND CUSTOMERS SIMULTANEOUSLY RATHER IS INTENDED TO FORCE EXCHANGES TO GET BETTER AT RECORDKEEPING TO DETECT FRAUD 9308050134 930805 INTERNATIONAL CURRENCY TRADERS WELCOME UPHEAVAL EUROPE'S TURMOIL MEANS JOBS CHANCE FOR BIG PROFITS BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON AMID THE GNASHING OF TEETH OVER THE VIRTUAL DEMISE OF EUROPE'S TIGHTLY CONTROLLED MONETARY SYSTEM ONE GROUP IS TRYING HARD TO HIDE ITS GLEE FOREIGNEXCHANGE TRADERS A COMMON CURRENCY EUROPE'S GOAL BY THE YEAR 2000 WOULD HAVE BEEN BAD FOR THEM WITH FEWER CURRENCIES TO TRADE THEY FIGURED FEWER PEOPLE WOULD BE NEEDED TO TRADE THEM INSTEAD THERE WILL BE EVEN MORE FLUCTUATION FOR CURRENCIES AND POTENTIALLY MORE RISK FOR ANYONE DOING BUSINESS INTERNATIONALLY LET'S JUST SAY WE'RE CERTAINLY NOT WORRIED ABOUT WHERE TO FIND WORK ANYMORE SAYS PER KAALBY FOREIGNEXCHANGE MANAGER AT BAYERISCHE VEREINSBANK AG IN MUNICH EVERYONE NEEDS TO LOOK AT EUROPE COUNTRYBYCOUNTRY NOW AND THAT REQUIRES MORE RESOURCES MORE PEOPLE AND MORE POTENTIAL FOR PROFIT MR KAALBY ESTIMATES FOREIGNEXCHANGE TURNOVER AT HIS BANK HAS INCREASED 200 TO 300 IN THE PAST WEEK ALTHOUGH GROWTH WON'T CONTINUE AT THAT PACE HE PREDICTS IT WILL STAY WELL ABOVE AVERAGE AS A RESULT BAYERISCHE VEREINSBANK PLANS NEW HEDGING SERVICES FOR CLIENTS WHICH TYPICALLY INVOLVE BUYING AND SELLING CURRENCY CONTRACTS TO MANAGE RISKS OTHERS ARE PREPARING TO EXPAND AS WELL CHASE MANHATTAN BANK IN LONDON THE US BANK'S GLOBAL HEADQUARTERS FOR CURRENCY TRADING HAS STEADILY BOOSTED STAFFING SINCE TURMOIL BEGAN IN THE EXCHANGE RATE MECHANISM LAST YEAR THE ERM IS A JOINT FLOAT OF NINE EUROPEAN CURRENCIES THAT FLUCTUATE WITHIN PROSCRIBED RANGES AGAINST ONE ANOTHER ALBERT MAASLAND THE GROUP'S HEAD OF SALES AND MARKETING SAYS CHASE A UNIT OF CHASE MANHATTAN CORP HAS HIRED ABOUT 12 TRADERS AND SALESMEN IN THE PAST SIX MONTHS A 20 INCREASE IN CURRENCYRELATED PERSONNEL AND PLANS TO ADD MORE WE'RE EXECUTING THREE OR FOUR TIMES THE AMOUNT OF BUSINESS COMPARED TO ABOUT A YEAR AGO MR MAASLAND SAYS A LOT OF OUR CLIENTS WHO USED TO TAKE COMFORT IN THE TIGHT ERM BANDS NOW FIND THEY HAVE TO WORRY ABOUT COVERING THEIR EXPOSURE AND THAT GIVES US PLENTY TO DO OTHER INSTITUTIONS SUCH AS MERRILL LYNCH & CO'S MERRILL LYNCH LTD UNIT BARCLAYS BANK PLC AND UNION BANK OF SWITZERLAND ALSO ARE CONSIDERING BEEFING UP THEIR FOREIGNEXCHANGE TRADING DESKS AND INCREASING THEIR COVERAGE OF SOME SMALLER EUROPEAN ECONOMIES LIKE SPAIN BELGIUM AND THE SCANDINAVIAN COUNTRIES CHRIS DEUTERS HEAD OF GLOBAL FOREIGN EXCHANGE AT LEHMAN BROTHERS IN LONDON SAYS HIS FIRM A UNIT OF AMERICAN EXPRESS CO IS USED TO ANALYZING GERMANY AND THE BENELUX NATIONS BELGIUM THE NETHERLANDS AND LUXEMBOURG VIRTUALLY AS A SINGLE ENTITY SUDDENLY THAT'S NOT MEANINGFUL ANYMORE HE NOTES WE HAVE TO LOOK AT EACH COUNTRY INDIVIDUALLY AND THAT COULD MEAN A GREATER NEED FOR STAFF TO BE SURE THE NEW OPPORTUNITIES FOR COMMERCIAL BANKS BROKERAGE FIRMS AND DERIVATIVES EXCHANGES ARE LIKELY TO DISHEARTEN EUROPEAN POLITICIANS THE FRENCH IN PARTICULAR VOWED REPEATEDLY TO BREAK THE BACK OF SPECULATORS THE POTENTIAL WRATH OF EUROPEAN AUTHORITIES IS NO SMALL CONCERN OF THOSE IN THE MARKET DAVID CLARK THE TREASURER AT HSBC HOLDINGS PLC AND PRESIDENT OF THE INTERNATIONAL FOREIGN EXCHANGE ASSOCIATION WORRIES THAT SETBACKS TO THE ERM MIGHT DRIVE POLITICIANS TO REINSTATE CAPITAL CONTROLS OR IMPOSE TAXES ON CURRENCY TRANSACTIONS NONE OF THE MAJOR INTERNATIONAL FINANCIAL CENTERS NOW HAS SUCH CONTROLS OR TAXES STILL NEARLY EVERYONE AGREES THERE WILL BE AN INCREASED NEED TO TRADE EUROPEAN CURRENCIES AND LONDON AS THE WORLD'S LARGEST CENTER FOR FOREIGNEXCHANGE TRADING WILL PROBABLY BENEFIT MOST A MAJORITY OF THE WORLD'S MAJOR BANKS INCLUDING THOSE FROM THE US BASE THEIR GLOBAL CURRENCY TRADING OPERATIONS IN LONDON ACCORDING TO A RECENT SURVEY BY THE BANK OF ENGLAND AND THE BANK FOR INTERNATIONAL SETTLEMENTS OF THE 11 TRILLION IN DAILY FOREIGNEXCHANGE TRADING INSTITUTIONS IN THE UK TRADE THE EQUIVALENT OF 300 BILLION A DAY IN CURRENCIES OF ALL COUNTRIES WHILE THE FIGURE IS 192 BILLION FOR THE US AND 126 BILLION IN JAPAN MR CLARK OF HSBC WHOSE HOLDINGS INCLUDE HONGKONG & SHANGHAI BANKING CORP AND MIDLAND BANK PREDICTS THE AMOUNT OF TRADING IN EUROPEAN CURRENCIES PROBABLY WILL DOUBLE OVER THE NEXT TWO TO THREE YEARS LED IN PART BY SHARPLY INCREASED USE OF DERIVATIVES SUCH AS FX OPTIONS WHICH ALLOW AN INVESTOR TO BUY OR SELL A CURRENCY AT A FIXED PRICE AT A LATER DATE IN ADDITION SEVERAL FACTORS ARE COMBINING TO MAKE THE INTERNATIONAL FOREIGNEXCHANGE MARKET AND PARALLEL MARKETS THAT HAVE SPRUNG UP AROUND IT A BRAVE NEW WORLD FOR EVEN EXPERIENCED TRADERS FOR THE FIRST TIME THEY WILL BE KEEPING TRACK OF 10 TO 12 MAJOR CURRENCIES INSTEAD OF THREE OR FOUR THE CURRENCIES WILL ALL BE EFFECTIVELY FREEFLOATING IN A 30 RANGE VS A NARROW RANGE OF JUST 45 BEFORE THE CRISIS LAST WEEKEND AND THERE ARE NO LONGER THE STIFF FOREIGNEXCHANGE AND CAPITAL CONTROLS THAT HELPED LIMIT CURRENCY FLUCTUATIONS BEFORE MUCH OF EUROPE ESTABLISHED THE ERM IN 1979 WITH THE NEW WIDE BANDS CURRENCIES SUCH AS THE SPANISH PESETA FOR THE FIRST TIME WILL BE TESTED BY THE FULL WEIGHT OF THE FREEWHEELING GLOBAL MARKET WHAT'S MORE THE INVESTMENT WORLD HAS CHANGED RADICALLY SINCE THE ERM HAS BEEN IN OPERATION US INVESTORS HAVE POURED EVERINCREASING SUMS INTO EUROPEAN MARKETS IN 1993 THEY PURCHASED A NET 1803 BILLION IN EUROPEAN STOCKS COMPARED WITH 191 BILLION IN 1985 ACCORDING TO THE US SECURITIES INDUSTRY ASSOCIATION EXPERTS PREDICT THAT TREND WILL ACCELERATE AS EUROPE GRADUALLY RECOVERS FROM RECESSION CREATING NEW INVESTMENT OPPORTUNITIES WITH MORE MONEY AT STAKE THE NEED FOR US INVESTORS TO PROTECT AGAINST GREATER CURRENCY RISK WILL GROW EUROPEAN COMPANIES THEMSELVES ALSO HAVE RANGED OUTSIDE THEIR HOME COUNTRIES ESTABLISHING ALLIANCES AND PARTNERSHIPS AND BUILDING FACTORIES WHERE THE CHANCE OF WIDELY FLUCTUATING COSTS AND REVENUES HAS INCREASED SHARPLY FOLLOWING THE ERM'S VIRTUAL COLLAPSE AT ABB ASEA BROWN BOVERI LTD A SWISSSWEDISH ELECTRICAL ENGINEERING GROUP THE UNRAVELLING OF THE ERM ALREADY HAS MEANT MOREACTIVE CURRENCY MANAGEMENT ABB HAS 12 TREASURY CENTERS WORLDWIDE EACH HANDLING ITS OWN EXPOSURE ONE THING IS CLEAR A YEAR AGO WE COULD ALMOST HAVE DONE WITHOUT DEALING WITH CURRENCY RISK WITHIN EUROPE NOW WE DEFINITELY HAVE TO RIDE OUT MUCH MORE VOLATILITY SAYS DIETER KEMPKES EXECUTIVE VICE PRESIDENT IN CHARGE OF TRADING WHILE THE FOREIGNEXCHANGE MARKET IN EUROPEAN CURRENCIES WILL ALMOST CERTAINLY BE MORE ACTIVE DAYTODAY THE OCCASIONAL FRENZIED PERIODS OF CURRENCY ATTACKS MIGHT BE A THING OF THE PAST THAT IS BECAUSE GIVEN THE NEW VERY WIDE BANDS MOST ERM CURRENCIES ARE UNLIKELY TO FALL TO THEIR FLOORS THE POINT AT WHICH CENTRAL BANKS MUST BUY THE CURRENCY THOSE OBLIGATORY PURCHASES WERE WHAT FUNDED HUGE ONETIME GAINS BY SPECULATORS IN THE ERM THE NEW MORE LIBERALIZED ERM IS LIKELY TO BENEFIT THOSE FINANCIAL HOUSES WITH STEADY FLOWS OF BUSINESS RATHER THAN SPECULATORS KEEN ON MAKING BIG BETS IN THE PAST SHORTSELLERS SOLD A CURRENCY OVER A BRIEF BUT INTENSE PERIOD FORCING THE CENTRAL BANKS TO BUY THE MARKET PRESSURE EVENTUALLY BECAME UNBEARABLE FORCING AUTHORITIES TO DEVALUE THAT CURRENCY RATHER THAN SPEND BILLIONS OF DOLLARS TO PROTECT IT AFTER THE DEVALUATION THE SHORTSELLERS COULD COVER THEIR POSITIONS BY BUYING AT THE NEW LOWER RATE THE NEW BANDS ELIMINATE THE PREDATORY ELEMENT THAT EXISTED IN THE ERM WHEN YOU REMOVE THE TIGHT BANDS YOU REMOVE THE MOTIVATION FOR SPECULATING OVER WHETHER THE BANDS WILL HOLD SAYS MALCOLM BARR INTERNATIONAL ECONOMIST AT CHEMICAL BANKING CORP'S CHEMICAL BANK UNIT IN LONDON 9308050133 930805 US EXTENDS WESTINGHOUSE JOB PITTSBURGH WESTINGHOUSE ELECTRIC CORP SAID THE ENERGY DEPARTMENT RENEWED A 14 BILLION FIVEYEAR CONTRACT FOR THE OPERATION OF BETTIS ATOMIC POWER LABORATORY IN WEST MIFFLIN PA THE NEW CONTRACT IS EFFECTIVE OCT 1 1993 AND EXPIRES SEPT 30 1998 WESTINGHOUSE HAS OPERATED BETTIS SINCE 1948 9308050132 930805 WHO'S NEWS PACIFIC ENTERPRISES TAPS RICHARD FARMAN FOR 2 TOP POSITIONS LOS ANGELES PACIFIC ENTERPRISES SEEKING TO BRING ITS MANAGEMENT STRUCTURE IN LINE WITH A RENEWED EMPHASIS ON ITS CORE GASUTILITY BUSINESS NAMED RICHARD D FARMAN PRESIDENT AND CHIEF OPERATING OFFICER MR FARMAN 58 YEARS OLD WILL SUCCEED WILLIS B WOOD JR AS PRESIDENT OF THE HOLDING COMPANY MR WOOD CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE CHIEF OPERATING OFFICER POST HAD BEEN VACANT THE MOVE COMES AFTER MORE THAN A YEAR OF DIVESTING NONUTILITY ASSETS INCLUDING A DRUGSTORE CHAIN AND PETROLEUM OPERATIONS DURING THE SAME PERIOD A SPOKESMAN SAID PERSONNEL AT THE HOLDING COMPANY WAS REDUCED TO 30 FROM ABOUT 300 THE COMPANY SAID THAT MR FARMAN'S NEW ROLE WILL ALLOW HIM TO CONTINUE AS CHIEF EXECUTIVE OFFICER OF THE FIRM'S SOUTHERN CALIFORNIA GAS CO THE NATION'S LARGEST GAS UTILITY BUT HE WILL RELINQUISH HIS TITLE OF CHAIRMAN OF THE GAS UNIT AND THAT POSITION WILL BE ABOLISHED IN THE OVERALL RESTRUCTURING 9308050131 930805 BUSINESS BRIEF CHARTER MEDICAL CORP CONSIDERS A SPINOFF OR SALE OF 10 HOSPITALS MACON GA CHARTER MEDICAL CORP SAID IT IS CONSIDERING SELLING OR SPINNING OFF ITS 10 GENERAL ACUTECARE HOSPITALS AND REPORTED AN INCREASE IN OPERATING PROFIT FOR ITS FISCAL THIRD QUARTER CHARTER WHICH RUNS 79 PSYCHIATRIC HOSPITALS AND 10 GENERAL HOSPITALS SAID NO AGREEMENTS HAVE BEEN REACHED ALTHOUGH IT HAS HAD DISCUSSIONS WITH SEVERAL PARTIES MAC CRAWFORD PRESIDENT AND CHIEF EXECUTIVE OFFICER WOULDN'T GIVE FURTHER DETAILS ON THE NEGOTIATIONS OR WHEN PLANS MIGHT BE FINALIZED THE COMPANY IS CONSIDERING THE MOVE TO NARROW ITS FOCUS TO ITS PSYCHIATRIC FACILITIES MR CRAWFORD SAID THE MOVE WOULD ALSO HELP THE COMPANY CUT ITS 785 MILLION DEBT LOAD WHICH COMPARES WITH THE 17 BILLION DEBT BEFORE ITS BANKRUPTCYLAW FILING LAST SUMMER CHARTER POSTED A NET LOSS OF 53 MILLION FOR ITS THIRD QUARTER ENDED JUNE 30 COMPARED WITH A NET LOSS OF 125 MILLION A YEAR EARLIER THE LOSSES REFLECT SEVERAL NONCASH CHARGES FOR INTEREST AND OTHER EXPENSES RELATED TO THE COMPANY'S REORGANIZATION COMPLETED LAST JULY CHARTER'S OPERATING PROFIT ROSE 44 IN LINE WITH ANALYSTS' EXPECTATIONS TO 663 MILLION FROM 635 MILLION SALES GREW TO 3256 MILLION FROM 3157 MILLION CHARTER'S STOCK CLOSED AT 2075 A SHARE UP 125 OR 64 IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE 9308050130 930805 WHO'S NEWS CHEVRON CORP CHEVRON CORP SAN FRANCISCO RONALD KISKIS 45 YEARS OLD WAS ELECTED VICE PRESIDENT OF HUMAN RESOURCES AT THE OIL COMPANY SUCCEEDING LOUIS FERNANDEZ JR 63 WHO RETIRES OCT 1 MR KISKIS WHO'S PRESIDENT OF CHEVRON CANADA LTD VANCOUVER BRITISH COLUMBIA WILL BE SUCCEEDED BY PATRICIA WOERTZ 40 SHE PREVIOUSLY WAS MANAGER OF STRATEGIC PLANNING AT THE PARENT COMPANY 9308050129 930805 WHO'S NEWS MAGAININ PHARMACEUTICALS INC MAGAININ PHARMACEUTICALS INC PLYMOUTH MEETING PA MICHAEL R DOUGHERTY 35 YEARS OLD WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS BIOPHARMACEUTICAL COMPANY HE WAS FORMERLY CHIEF FINANCIAL OFFICER OF CENTOCOR INC 9308050128 930805 BUSINESS BRIEF GENERAL RE RELIANCE GROUP HOLDINGS POST INCREASES IN SECONDPERIOD PROFITS NEW YORK GENERAL RE CORP AND RELIANCE GROUP HOLDINGS REPORTED HIGHER SECONDQUARTER NET INCOME WITH GENERAL RE'S 16 INCREASE SURPRISING ANALYSTS AND PUSHING ITS STOCK UP 2 GENERAL RE A REINSURER SHOWED STRONG GROWTH IN ITS UNDERWRITING PROGRAMS AND RELIANCE GROUP HOLDINGS AN INSURANCE AND INVESTMENT FIRM HAD STRONG GAINS IN INVESTMENT INCOME GENERAL RE REPORTED PROFIT OF 1838 MILLION OR 214 A SHARE UP FROM 1585 MILLION OR 180 A SHARE IN THE 1992 QUARTER REVENUE INCREASED SLIGHTLY TO 8434 MILLION ANALYSTS HAD EXPECTED THE STAMFORD CONN REINSURER'S EXPOSURE TO CATASTROPHES INCLUDING THE WORLD TRADE CENTER BOMBING AS WELL AS THE SOFT PROPERTY AND CASUALTY PRICING ENVIRONMENT TO HURT EARNINGS MORE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING GENERAL RE'S STOCK CLOSED UP 250 AT 12550 GENERAL RE'S COMBINED UNDERWRITING/EXPENSE RATIO FOR DOMESTIC PROPERTY AND CASUALTY COMPANIES DROPPED TO 998 FOR THE SECOND QUARTER COMPARED WITH 1041 A YEAR EARLIER THE COMBINED RATIO IS CONSIDERED A KEY MEASURE OF AN INSURER'S STRENGTH WITH A RATIO BELOW 100 CONSIDERED DESIRABLE THE COMPANY ADDED THAT IT COMPLETED ITS SALE OF NORTH STAR RE TO SIGNET STAR HOLDINGS GENERAL RE WILL RECEIVE A MINORITY STAKE IN SIGNET STAR HOLDINGS GENERAL RE SAID THE TRANSACTION HAD LITTLE IMPACT ON SECONDQUARTER RESULTS RELIANCE GROUP HOLDINGS REPORTED SECONDQUARTER NET OF 297 MILLION OR 33 CENTS A SHARE A 24 GAIN FROM LAST YEAR'S 238 MILLION OR 31 CENTS A SHARE REVENUE INCREASED 12 TO 7623 MILLION THE COMPANY SAID THE 1992 QUARTER INCLUDED 13 MILLION OR 19 CENTS A SHARE IN INCOME FROM DISCONTINUED LIFE INSURANCE OPERATIONS AND 35 MILLION OR FOUR CENTS A SHARE FROM EARLY EXTINGUISHMENT OF DEBT THE COMPANY SAID EARNINGS ROSE ON IMPROVED PERFORMANCE AT ITS INSURANCE BUSINESSES AND INVESTMENT GAINS AT ITS PROPERTY AND CASUALTY OPERATIONS THE COMPANY'S COMBINED RATIO AT ITS PROPERTY AND CASUALTY OPERATION INCREASED TO 1081 FROM 1077 A YEAR EARLIER RELIANCE GROUP ADDED THAT TITLE INSURANCE PROFIT AT ITS COMMONWEALTH TITLE AND TRANSAMERICA TITLE OPERATIONS ROSE AS THE UNITS CONTINUED TO BENEFIT FROM HEAVY RESIDENTIAL REFINANCING RELIANCE GROUP SHARES CLOSED UP 50 CENTS AT 7 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9308050127 930805 WHO'S NEWS DUN & BRADSTREET CORP DUN & BRADSTREET CORP NEW YORK THIS INFORMATIONSERVICES CONCERN NAMED ERIC B KIM 38 YEARS OLD TO THE NEWLY CREATED POST OF VICE PRESIDENT NEW TECHNOLOGY AND APPOINTED THOMAS F CRAWFORD 45 CHIEF FINANCIAL OFFICER OF ITS MARKETING INFORMATION SERVICES BUSINESS SEGMENT THE COMPANY SAID MR KIM WHO WAS PREVIOUSLY A VICE PRESIDENT OF THE DUN & BRADSTREET SOFTWARE UNIT WILL BE RESPONSIBLE FOR IDENTIFYING AND DEVELOPING RELEVANT NEW TECHNOLOGIES MR CRAWFORD WILL CONTINUE AS CHIEF FINANCIAL OFFICER OF D&B'S IMS INTERNATIONAL UNIT WHICH IS PART OF THE MARKETING INFORMATION SERVICES SEGMENT THE SEGMENT ALSO INCLUDES DUN & BRADSTREET'S NIELSEN MARKETING RESEARCH AND NIELSEN MEDIA RESEARCH OPERATIONS 9308050126 930805 CLINTON GARNERS FRAGILE MAJORITY FOR DEFICIT PLAN SEN DECONCINI ANNOUNCES HE'LL SUPPORT PACKAGE HOUSE IS TO VOTE TODAY BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WITH A FEW PEN STROKES AND A LOT OF PRESSURE PRESIDENT CLINTON AND DEMOCRATIC CONGRESSIONAL LEADERS APPEARED TO HAVE FIRMED UP A FRAGILE MAJORITY FOR THEIR 496 BILLION DEFICITREDUCTION PROGRAM BEFORE THE HOUSE VOTE EXPECTED TODAY AT THE WHITE HOUSE MR CLINTON ACTED TO PLACATE WAVERING DEMOCRATIC CONSERVATIVES BY SIGNING EXECUTIVE ORDERS INTENDED TO HELP REIN IN THE GROWTH OF FEDERAL BENEFIT PROGRAMS AND TO CREATE A DEFICITREDUCTION TRUST FUND THE LATTER WAS INTENDED TO LURE UNDECIDED SEN DENNIS DECONCINI AND HOURS LATER THE ARIZONA DEMOCRAT ANNOUNCED THAT HE'LL PROVIDE THE VOTE THAT APPEARS TO ENSURE SENATE PASSAGE OF THE ADMINISTRATION'S PLAN THIS PLAN IS THE BEST THAT CAN BE PUT TOGETHER DECLARED MR DECONCINI SAYING HE WAS CONVINCED IT WOULD BOTH REDUCE THE DEFICIT AND CREATE JOBS THE THIRDTERM SENATOR ALREADY FACED A TOUGH REELECTION RACE NEXT YEAR AND REPUBLICANS PROMPTLY VOWED TO MAKE IT TOUGHER THE CHAIRMAN OF THE NATIONAL REPUBLICAN SENATORIAL COMMITTEE SEN PHIL GRAMM OF TEXAS SAID MR DECONCINI WILL BE OUR NO1 TARGET IN 1994 DESPITE THE POLITICAL HEAT A SIMILAR ANNOUNCEMENT OF SUPPORT FROM SEN JOSEPH LIEBERMAN D CONN ADDED TO THE IMPRESSION OF MOMENTUM IN FAVOR OF MR CLINTON'S PACKAGE I HAVE DECIDED TO CAST MY VOTE FOR CHANGE SAID MR LIEBERMAN WHO HAD PREVIOUSLY EXPRESSED RESERVATIONS THE PRESIDENT HIMSELF VISITED CAPITOL HILL TO LOBBY DEMOCRATS IN THE HOUSE WHERE HE HAS ENJOYED A SLIGHTLY MORE COMFORTABLE MARGIN FOLLOWING QUICKLY BEHIND THE PRESIDENT'S NATIONALLY TELEVISED SPEECH THE CLOSEDDOOR APPEARANCE CALMED A LOT OF FEARS GENERATED BY REPUBLICAN ATTACKS SAID REP MIKE SYNAR D OKLA HE SEALED IT TODAY AT A NEWS CONFERENCE AFTERWARD MR CINTON DECRIED REPUBLICAN MISINFORMATION AND SAID HE WAS TRYING TO CLEAN DIRT OFF A WINDSHIELD SO THAT THE AMERICAN PEOPLE COULD SEE OUT OF THE WINDSHIELD AGAIN SPECIFICALLY MR CLINTON RESPONDED TO SENATE MINORITY LEADER BOB DOLE'S BITING ATTACK ON THE DEFICITREDUCTION PACKAGE FOR MAKING TAX INCREASES EFFECTIVE RETROACTIVE TO JAN 1 THE KANSAS REPUBLICAN ASSERTED THAT NEVER BEFORE IN AMERICAN HISTORY HAD TAXES BEEN RAISED RETROACTIVELY AND NOTED ARCHLY THAT EVEN THE DRAFT OF A NEW RUSSIAN CONSTITUTION PROHIBITS THE PRACTICE THE TREASURY SAID THE GOP LEADER'S HISTORY WAS FAULTY CITING 13 SEPARATE RETROACTIVE TAX INCREASES THAT TOOK EFFECT BETWEEN 1917 AND 1976 ANOTHER ONE BACKED BY MR DOLE IN 1982 WHEN HE CHAIRED THE TAXWRITING SENATE FINANCE COMMITTEE RETROACTIVELY TAXED SOME JOBLESS WORKERS' UNEMPLOYMENT BENEFITS NONETHELESS ADMINISTRATION OFFICIALS SOUGHT TO INSULATE THE PLAN FROM GOP ATTACKS BY ANNOUNCING THEY WOULD GIVE UPPERINCOME AMERICANS TWO EXTRA YEARS TO PAY THE HIGHER TAXES THE 11THHOUR ADJUSTMENT DIDN'T MAKE ALL DEMOCRATS HAPPY THAT'S AN ADMISSION THAT IT'S A FOOLISH POLICY SAID REP RICHARD LEHMAN D CALIF WHO VOTED AGAINST THE WHITE HOUSE IN THE INITIAL HOUSE VOTE AND DECLARED HE'LL DO SO AGAIN BUT OTHER SIGNS IN THE HOUSE WHERE AN INITIAL VERSION OF MR CLINTON'S PLAN PASSED 219213 WERE MORE FAVORABLE FOR THE WHITE HOUSE THE PRESIDENT HIMSELF APPEARED ALONGSIDE FOUR DEMOCRATS SWITCHING THEIR NO VOTES TO YESREPS CAROLYN MALONEY OF NEW YORK TIM JOHNSON OF SOUTH DAKOTA CHARLES WILSON OF TEXAS AND PAUL MCHALE OF PENNSYLVANIA REP JOHN LEWIS A CHIEF DEPUTY WHIP AND A MEMBER OF THE BLACK CAUCUS PREDICTED THAT THREE WAVERING CAUCUS MEMBERS WILL ALL BE THERE IN THE HOUSE VOTE THAT'S EXPECTED THIS AFTERNOON AND WHILE INFLUENTIAL REP CHARLES STENHOLM OF TEXAS CONFIRMED HE'LL OPPOSE THE PLAN BECAUSE ITS PROPOSED GASOLINETAX BOOST IS UNPOPULAR IN HIS RURAL DISTRICT OTHER DEMOCRATIC DEFICIT HAWKS SAID THE DEFECTION WOULDN'T GRIEVOUSLY DAMAGE THE ADMINISTRATION DEMOCRATIC LEADERS DON'T HAVE THE VOTES YET BUT THEY'RE CLOSE ENOUGH SAID REP TIM PENNY D MINN THE EXECUTIVE ORDERS MR CLINTON SIGNED YESTERDAY WERE INTENDED TO HELP UNDECIDED DEMOCRATS SUCH AS MR DECONCINI JUSTIFY BACKING THE PACKAGE BUT THE TRUST FUND IN PARTICULAR WAS ATTACKED AS A TOOTHLESS ACCOUNTING GIMMICK BY MR DOLE AND BY SOME NONPARTISAN BUDGETWATCHERS EVEN DAVID GERGEN CALLED THE IDEA A GIMMICK BEFORE HE BECAME COUNSELOR TO PRESIDENT CLINTON DEFENDING THE MOVE BUDGET DIRECTOR LEON PANETTA EXPLAINED THAT ALL SAVINGS AND TAX REVENUES RAISED BY THE DEFICITREDUCTION BILL WOULD BE PLACED INTO THE TRUST FUND HE INSISTED THAT THIS MONEY WOULD NO LONGER BE COUNTED AS PART OF A BUDGETARY SCORECARD THAT CAN BE USED TO FINANCE NEW MANDATORY SPENDING PROGRAMS OR TAX CUTS IT PROVIDES AN ADDITIONAL GUARANTEE MR PANETTA SAID THAT MONEY RAISED BY THE PLAN WILL REDUCE THE DEFICIT THE OTHER EXECUTIVE ORDER WOULD TRIGGER ACTION WHEN SPENDING ON MANDATORY GOVERNMENT BENEFIT PROGRAMS EXCEEDED ADMINISTRATION PROJECTIONS IN THAT EVENT THE PRESIDENT WOULD HAVE TO REPORT TO CONGRESS THE AMOUNT OF THE OVERRUN AND THE SPECIFIC STEPS HE WOULD TAKE TO BRING THESE PROGRAMS BACK IN LINE THE PRESIDENT CAN ALSO RECOMMEND THAT NO ACTION BE TAKEN BUT THEN MR PANETTA NOTED HE'S GOT TO EXPLAIN TO THE AMERICAN PEOPLE EXACTLY WHY HE'S GOING TO EXCUSE HIMSELF AND THE COUNTRY FROM DEALING WITH THE PROBLEM THE INCOMETAX RATE INCREASES WHICH WOULD HIT THE WEALTHIEST 12 OF AMERICANS WOULD BE RETROACTIVE TO JAN 1 BUT THE FINAL BUDGET PACKAGE INCLUDES AN INSTALLMENT PLAN PEOPLE AFFECTED BY THE BOOSTS COULD PAY ONETHIRD OF THEIR ADDITIONAL 1993 TAXES NEXT APRIL 15 THE SECOND THIRD A YEAR LATER AND THE FINAL THIRD ON APRIL 15 1996 THE GOVERNMENT WOULDN'T CHARGE ANY INTEREST THE PLAN MAY HELP BLUNT REPUBLICAN CRITICISM BUT IT WOULD ALSO COST UNCLE SAM SOME MONEY BECAUSE THE GOVERNMENT WOULDN'T BRING IN AS MUCH REVENUE UP FRONT THE MOVE WOULD LOWER PROJECTED REVENUES ABOUT 300 MILLION OVER FIVE YEARS OR ABOUT 025 OF THE ESTIMATED TAKE FROM THE INDIVIDUAL TAX INCREASES IN THE PACKAGE UNDER THE BILL THE NEW TOP MARGINAL TAX RATE WOULD JUMP TO 396 FROM 31 FOR TAXABLE INCOMES ABOVE 250000 AN INCREASE TO 36 WOULD BE LEVIED ON TAXABLE INCOMES GREATER THAN 115000 FOR SINGLE TAXPAYERS AND 140000 FOR MARRIED COUPLES FILING JOINTLY THE ADMINISTRATION IS CONSIDERING ONE ADDITIONAL STEP TO HELP SMOOTH ITS PROSPECTS IN THE SENATE WHERE MR CLINTON HAS NO MARGIN FOR ERROR SEN ROBERT KERREY WHO BACKED THE ADMINISTRATION PLAN INITIALLY BUT IS NOW WAVERING HAS CALLED FOR A SPECIAL SESSION OF CONGRESS TO RECOMMEND ADDITIONAL SPENDING CUTS LATER THIS YEAR MR PANETTA INDICATED THE IDEA COULD BECOME PART OF VICE PRESIDENT AL GORE'S EFFORT TO OVERHAUL THE GOVERNMENT'S MANAGEMENT STRUCTURE AND HOUSE LEADERS MET WITH SEN KERREY LAST NIGHT TO DISCUSS IT THE LASTMINUTE FLURRY OF ACTIVITY AROUND THE CAPITOL INCLUDED A BLIZZARD OF TELEPHONE CALLS TO LAWMAKERS MOST OF THEM OPPOSING MR CLINTON'S PLAN IN HIS RESPONSE TO THE PRESIDENT'S SPEECH TUESDAY NIGHT MR DOLE HAD EXHORTED LISTENERS TO CALL THEIR REPRESENTATIVES AND ROSS PEROT'S ORGANIZATION HAS DONE THE SAME IN RECENT DAYS THE DEMOCRATIC PARTY'S OWN POLLS AFTER THE SPEECH SHOWED THAT AMERICANS FAVORED THE PLAN BUT ONLY BY A 48 TO 41 MARGIN THEY ALSO SHOWED THAT A LARGE NUMBER OF PEOPLE STILL BELIEVED ERRONEOUSLY THAT MOST OF THE TAX INCREASE WAS ON THE MIDDLE CLASS TO ENSURE THAT DEMOCRATS HEAR A POSITIVE MESSAGE THE DEMOCRATIC NATIONAL COMMITTEE HAS BEEN SEEKING OUT CONSTITUENTS WHO FAVOR THE PRESIDENT'S PLAN RECENTLY THEY TRIED TO CALL A WOMAN IN BETHLEHEM PA WHO TURNED OUT TO BE THE WIFE OF REP MCHALE OF PENNSYLVANIA WHEN THE CALL CAME SHE WASN'T HOME BUT THE CONGRESSMAN WAS OK I GIVE UP MR MCHALE TOLD A SENIOR ADMINISTRATION OFFICIAL AFTERWARD YOU'VE GOT MY WIFE CALLING ME TO VOTE FOR THIS JEFFREY H BIRNBAUM AND RICK WARTZMAN CONTRIBUTED TO THIS ARTICLE 9308050125 930805 CAE GETS JOB FROM US NAVY TORONTO CAE INC SAID ITS CAELINK CORP SUBSIDIARY RECEIVED A 192 MILLION CONTRACT FROM THE US NAVY TO DESIGN MANUFACTURE AND TEST A PROTOTYPE OF A SHIPBOARD CONTROL SYSTEM THE SYSTEM WILL BE DESIGNED TO PERFORM REALTIME MONITORING AND CONTROL OF A SHIP'S HULL MECHANICAL AND ELECTRICAL FUNCTIONS INCLUDING PROPULSION AUXILIARY ELECTRIC PLANT AND DAMAGE CONTROL CAE SAID CAE IS A SUPPLIER OF SIMULATION AND TRAINING EQUIPMENT TO THE MILITARY AND COMMERCIAL AIRLINE INDUSTRY 9308050124 930805 TOTAL SYSTEM AT&T UNIT PACT COLUMBUS GA TOTAL SYSTEM SERVICES INC A CREDIT CARD PROCESSOR SAID IT SIGNED A SEVENYEAR CREDIT CARD PROCESSING AGREEMENT WITH AT&T UNIVERSAL CARD SERVICES A UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO THAT WILL RESULT IN ABOUT 300 MILLION IN REVENUE TOTAL SYSTEM IS ABOUT 81OWNED BY SYNOVUS FINANCIAL CORP IN COLUMBUS GA 9308050123 930805 TECHNOLOGY FDA APPROVES MERIDIAN PLAN CINCINNATI MERIDIAN DIAGNOSTICS INC SAID THE FOOD AND DRUG ADMINISTRATION APPROVED ITS PETITION TO MARKET ITS PARAPAK PLUS PRODUCT WHICH PRESERVES TRANSPORTS AND CONCENTRATES PARASITES IN STOOL SAMPLES THE IMMUNODIAGNOSTIC TESTING CONCERN SAID IT ALREADY HAS THE LEADING POSITION IN PARASITE PRESERVATION TRANSPORTATION AND IDENTIFICATION SYSTEMS 9308050121 930805 TRIANGLE CORP UNIT SALE STAMFORD CONN TRIANGLE CORP A MAKER OF AEROSOL CHEMICALS AND FUEL INJECTION TESTING EQUIPMENT SAID IT COMPLETED THE SALE OF ITS HANDTOOL HORSESHOE AND FARRIERTOOL UNITS TO COOPER INDUSTRIES INC FOR 324 MILLION PART OF WHICH IS DEFERRED THE BUSINESSES REPRESENT 90 OF TRIANGLE'S 1992 SALES AND ASSETS THE COMPANY SAID IT WILL USE PART OF THE PROCEEDS FROM THE SALE TO LIQUIDATE DEBT OF 15 MILLION WHICH THE COMPANY ACCRUED DURING A 1986 JUNKBOND OFFERING 9308050120 930805 COMPUTER ASSOCIATES ISLANDIA NY COMPUTER ASSOCIATES INTERNATIONAL INC AND FIRST FIDELITY BANCORP SAID THEY SETTLED A LEGAL DISPUTE OVER SOFTWARE USE BY ENTERING INTO A LICENSE AGREEMENT UNDER TERMS OF THE AGREEMENT FIRST FIDELITY BASED IN LAWRENCEVILLE NJ WILL HAVE THE RIGHT TO USE CERTAIN COMPUTER ASSOCIATES SOFTWARE FOR A FLAT FEE THROUGHOUT THE COMPANY FIRST FIDELITY'S FEE FOR THE SOFTWARE RIGHTS WASN'T DISCLOSED COMPUTER ASSOCIATES SUED FIRST FIDELITY IN APRIL 1992 CLAIMING THAT FIRST FIDELITY HAD ILLEGALLY USED SOME OF ITS SOFTWARE 9308050119 930805 ABB ASEA BROWN BOVERI PLANT ZURICH ABB ASEA BROWN BOVERI AG HAS BEEN ASKED BY THE STATE GOVERNMENT OF WESTERN AUSTRALIA TO SUBMIT A NEW BID FOR A SCALEDDOWN VERSION OF A POWER PLANT IN COLLIE THE SWISS HEAVY ENGINEERING GROUP SAID IT WOULD TAKE THREE TO FOUR MONTHS TO PREPARE A NEW BID ABB IS COOWNED BY BBC BROWN BOVERI AG OF SWITZERLAND AND ASEA AB OF SWEDEN UNDER THE ORIGINAL TERMS ABB WAS TO HAVE BUILT A POWER PLANT WITH TWO 300MEGAWATT GENERATORS FOR ABOUT TWO BILLION AUSTRALIAN DOLLARS US138 BILLION IN ADDITION THE COMPANY WAS TO OPERATE THE PLANT BUT THE STATE GOVERNMENT HAS DECIDED THAT IT WANTS ONLY ONE 300MEGAWATT GENERATOR AND THAT IT DOESN'T WANT ABB TO OPERATE THE POWER PLANT ONCE IT'S BUILT 9308050118 930805 SOUTHWEST AIR'S TRAFFIC JUMPS DALLAS SOUTHWEST AIRLINES REPORTED THAT JULY TRAFFIC INCREASED 22 TO 155 BILLION REVENUE PASSENGER MILES FROM 127 BILLION A YEAR EARLIER TRAFFIC FOR THE FIRST SEVEN MONTHS OF THE YEAR WAS UP 21 TO 944 BILLION LOAD FACTOR EDGED UP TO 679 FROM 651 A YEAR EARLIER 9308050117 930805 GLOBAL MARINE COMPLETES OFFER HOUSTON GLOBAL MARINE INC SAID IT COMPLETED ITS PREVIOUSLY ANNOUNCED PUBLIC OFFERING OF 15 MILLION COMMON SHARES AT 4125 APIECE PLUS AN ADDITIONAL 225 MILLION SHARES THROUGH THE UNDERWRITERS' OVERALLOTMENT OPTION THE COMPANY SAID IT INTENDS TO USE ITS 67 MILLION IN NET PROCEEDS FROM THE OFFERING TO EXPAND ITS OFFSHORE JACKUP DRILLING RIG FLEET TO RETIRE 25 MILLION IN LONGTERM DEBT AND FOR RIG FLEET CAPITAL IMPROVEMENTS 9308050116 930805 ENTERPRISE SMALL FIRMS TRY TO CURB IMPACT OF LEAVE LAW BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL THE EASIEST WAY TO HANDLE THE FEDERAL FAMILYLEAVE LAW MANY SMALL COMPANIES HAVE DECIDED IS TO AVOID IT MANY BUSINESSES ARE TAKING PAINS TO KEEP THEIR PAYROLLS UNDER 50 THAT'S BECAUSE THE LAW WHICH TAKES EFFECT TODAY REQUIRES EMPLOYERS WITH 50 OR MORE PEOPLE ON THEIR PAYROLL TO ALLOW LEAVES FOR CERTAIN FAMILY AND MEDICAL NEEDS SOME SMALL BUSINESSES PLAN TO USE TEMPORARY WORKERS OR LIMIT EXPANSION TO STAY UNDER 50 EMPLOYEES FIFTY IS THE MAGIC NUMBER SAYS RUTH STAFFORD PRESIDENT OF KIVA CONTAINER CORP A PHOENIX PACKING MANUFACTURER WITH 48 EMPLOYEES TO KEEP HER PAYROLL UNDER 50 SHE PLANS TO USE TEMPORARY EMPLOYEES AS NEEDED TO HANDLE SIMPLE JOBS SUCH AS BUNDLING CARDBOARD BOXES OR STRIPPING DYECUT ITEMS OFF A MACHINE SMALLER EMPLOYERS ARE TRYING OTHER APPROACHES TOO PERSONNEL SPECIALISTS SAY SOME HAVE BEGUN DISCRIMINATING IN HIRING AGAINST YOUNGER WOMEN THINKING THEY WOULD BE THE MOST LIKELY TO TAKE FAMILY LEAVE EMPLOYERS TRYING TO AVOID THE LAW FEAR IT WILL RAISE COSTS AND DISRUPT OPERATIONS THE MEASURE SIGNED BY PRESIDENT CLINTON IN FEBRUARY REQUIRES THAT WORKERS AT COMPANIES WITH 50 OR MORE EMPLOYEES BE ALLOWED AS MUCH AS 12 WEEKS OF UNPAID LEAVE A YEAR AFTER THE BIRTH OR ADOPTION OF A CHILD IT ALSO MANDATES LEAVE TO CARE FOR A SPOUSE CHILD OR PARENT DURING A SERIOUS ILLNESS AS WELL AS TO DEAL WITH AN EMPLOYEE'S OWN MEDICAL PROBLEMS BUSINESSES THAT PROVIDE HEALTH INSURANCE MUST CONTINUE THE COVERAGE DURING A WORKER'S LEAVE TO BE SURE MANY SMALLER COMPANIES AREN'T WORRIED ABOUT THE PROSPECT OF MORE EMPLOYEES TAKING LEAVES OF ABSENCE AND ARE DOING NOTHING TO CIRCUMVENT THE LAW MANY HAVE PROVIDED SIMILAR BENEFITS ON THEIR OWN FOR YEARS AND FAVOR THE LAW BUT MANY ENTREPRENEURS SAY THE ACT WILL HAVE THE HEAVIEST IMPACT ON THEM BECAUSE THEY LACK THE STAFF AND FINANCIAL RESOURCES OF BIG CORPORATIONS TO ABSORB THE COST AND DISLOCATION OF ADDITIONAL WORKER LEAVES THAT'S WHY SOME SMALL COMPANIES ARE PUSHING TO CURB PERMANENT EMPLOYMENT UNIFORCE TEMPORARY SERVICES IN HYDE PARK NY IS GETTING MORE INQUIRIES FROM SMALL EMPLOYERS THAT WANT TO KEEP THEIR HEAD COUNT BELOW 50 BY USING TEMPORARIES SAYS ROSEMARY MANISCALCO THE COMPANY'S CHAIRWOMAN A LONGTERM TEMPORARY WORKER HOWEVER WOULD COME UNDER THE LAW FOR WORKING MORE THAN 24 HOURS A WEEK OVER A 12MONTH PERIOD SIMILARLY SEVERAL RESTAURANT OWNERS AT A RECENT MEETING OF THE VIRGINIA RESTAURANT ASSOCIATION IN RICHMOND VA DECIDED NOT TO START NEW CATERING OR CARRYOUT SERVICES BECAUSE OF THE ADDITIONAL EMPLOYEES INVOLVED SAYS JIM WORDSWORTH THE GROUP'S CHAIRMAN PURSUING OLDER WOMEN OTHER SMALL BUSINESSES MAY BE TRYING TO MINIMIZE THE LEAVE LAW'S IMPACT BY DISCRIMINATING AGAINST YOUNG WOMEN DURING THE PAST YEAR ABOUT A THIRD OF EMPLOYERS CALLING TERRY NEESE PERSONNEL SERVICE IN OKLAHOMA CITY HAVE ASKED FOR FEMALE JOB CANDIDATES MORE THAN 40 YEARS OLD SAYS TERRY NEESE PRESIDENT OF THE OKLAHOMA CITY AGENCY IN PRIOR YEARS SHE ADDS SUCH REQUESTS WERE RARE MOST OF THE AGENCY'S CLIENTS ARE SMALL BUSINESSES WHEN I TELL CLIENTS I DON'T DISCRIMINATE BASED ON AGE OR SEX THEY'RE NOT REAL HAPPY MS NEESE SAYS THEY DON'T WANT TO TAKE THE TIME TO INTERVIEW PEOPLE THEY KNOW THEY DON'T WANT TO HIRE THERE MAY BE SOME BASIS FOR SUCH EMPLOYERS' REASONING WOMEN ARE MORE WILLING THAN MEN TO TAKE LONG AMOUNTS OF UNPAID TIME OFF ACCORDING TO A RECENT NATIONWIDE SURVEY OF 700 EMPLOYEES BY THE BUREAU OF NATIONAL AFFAIRS A NEWSLETTER PUBLISHER IN WASHINGTON DC ABOUT 43 OF THE WOMEN SURVEYED SAID THEY WOULD TAKE 12 WEEKS OFF AFTER THE BIRTH OR ADOPTION OF A CHILD COMPARED WITH 7 OF MEN AND 46 OF THE WOMEN SAID THEY WOULD TAKE OFF THE MAXIMUM TIME ALLOWED TO CARE FOR A SERIOUSLY ILL PARENT OR SPOUSE COMPARED WITH 25 OF MEN SOME ENTREPRENEURS SAY THAT FOLLOWING THE LAW'S UNIFORM REQUIRMENTS COULD BE EXPENSIVE BECAUSE THEY WILL HAVE TO HIRE TEMPORARY REPLACEMENTS AND PAY HEALTHINSURANCE BENEFITS FOR WORKERS ON LEAVE I DON'T HAVE A PROBLEM WITH THE INTENT OF THE LAW WHERE I HAVE A PROBLEM IS THE COST SAYS JAMES BUNNELL OWNER OF BUNNELL PRINTING CORP A NORTON OHIO PRINT SHOP WITH 65 WORKERS IF EVERYBODY TOOK ADVANTAGE OF THIS I'D HAVE EXTRA COSTS OF 60000 TO 70000 A YEAR OTHER SMALL EMPLOYERS WORRY THAT THE LAW WILL ENCOURAGE ABUSE OF LEAVE POLICIES IN THE KESSLER EXCHANGE SURVEY TWOTHIRDS OF THE SMALL BUSINESSES POLLED SAID THEY WERE CONCERNED THAT EMPLOYEES INTENDING TO QUIT WOULD TAKE LEAVE UNDER THE ACT IN ORDER TO MAINTAIN THEIR HEALTH BENEFITS THE SAME SITUATION COULD OCCUR WHEN PEOPLE FACE SEASONAL LAYOFFS I ALSO THINK SOME WORKERS WILL THINK THIS IS A WAY TO TAKE TIME OFF AND USE IT AS VACATION TIME SAYS REBECCA LLEWELLYN PRESIDENT OF PAYCO SPECIALTIES INC A SAN DIEGO CONSTRUCTION FIRM BY INCLUDING DIFFERENT MEMBERS OF THE FAMILY SHE ADDS THE LAW LEAVES THE DOOR WIDE OPEN TO ABUSE SOME SMALLER EMPLOYERS HOWEVER HAVE DECIDED AGAINST TRYING TO LIMIT THE REACH OF THE NEW LAW MICHAEL ROGERS A HUMANRESOURCES VICE PRESIDENT FOR BANCFIRST CORP IN OKLAHOMA CITY RECENTLY HUNG A BIG STATE MAP ON THE WALL BEHIND HIS DESK SO HE COULD CHECK THE MILEAGE BETWEEN EACH OF THE BANK'S 20 BRANCHES AND ITS HEADQUARTERS THAT'S BECAUSE REGULATIONS FOR THE ACT EXEMPT BRANCH OFFICES THAT ARE MORE THAN 75 MILES FROM AN EMPLOYER'S HEADQUARTERS AND HAVE FEWER THAN 50 WORKERS MR ROGERS FOUND THAT FIVE OF ITS 20 BRANCHES WERE INDEED MORE THAN 75 MILES FROM HEADQUARTERS BUT THE MIDSIZED BANK WHICH ALREADY GRANTS ITS 600 EMPLOYEES AN AVERAGE OF SIX WEEKS OF UNPAID LEAVE FOR CHILDBIRTH OR OTHER PERSONAL REASONS WILL INCLUDE THE FIVE BRANCHES ANYWAY WE DECIDED THERE'S NO BENEFIT IN US SAYING 'GOTCHA' TO SOME OF OUR EMPLOYEES BECAUSE THEY TECHNICALLY AREN'T COVERED BY THE LAW MR ROGERS SAYS THE BANK DECIDED TO COVER EVERYBODY TO MAINTAIN EMPLOYEE MORALE AND TO PREVENT AN ADMINISTRATIVE HEADACHE BANCFIRST IS AMONG THE MANY SMALL BUSINESSES THAT ALREADY PROVIDED FAMILY LEAVE ON A FLEXIBLE BASIS A JUNE SURVEY OF 300 SMALL COMPANIES BY THE KESSLER EXCHANGE A RESEARCH COMPANY IN NORTHRIDGE CALIF SHOWED THAT 69 OF BUSINESSES COVERED BY THE NEW LAW HAD FAMILYLEAVE POLICIES AS DID 60 OF THOSE WITH FEWER THAN 50 EMPLOYEES A 1989 STUDY SPONSORED BY THE SMALL BUSINESS ADMINISTRATION CONCLUDED THAT MOST SMALL COMPANIES LET THEIR EMPLOYEES USE A COMBINATION OF PAID LEAVE AND PAID OR UNPAID SICK LEAVE TO TEND TO FAMILY ILLNESSES AND CHILDBIRTH BUT FEW SMALL COMPANIES HAD FORMAL MATERNITY AND CHILDCARE LEAVE POLICIES THE STUDY FOUND 9308050115 930805 TECHNOLOGY IBM FORMS UNIT TO OFFER ADVICE ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP SAID IT FORMED A NEW BUSINESS UNIT TO ADVISE COMPANIES ABOUT ENVIRONMENTAL HEALTH AND SAFETY THE COMPUTER GIANT SAID THE UNIT WILL DRAW ON IBM'S STAFF OF ENGINEERS AND INDUSTRIAL HYGIENISTS TO HELP CUSTOMERS FOLLOW REGULATIONS AND LAWS THE NEW UNIT IS THE LATEST OF SEVERAL MOVES BY IBM TO OFFER ITS INHOUSE PRODUCTS AND SERVICES TO CUSTOMERS OUTSIDE IBM 9308050114 930805 UNITED AIRLINES JULY TRAFFIC CHICAGO UNITED AIRLINES A UNIT OF UAL INC SAID ITS JULY TRAFFIC ROSE 19 TO 973 BILLION REVENUE PASSENGER MILES FROM 956 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE REPRESENTS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF SEATS SOLD FELL TO 703 FROM 764 A YEAR AGO UNITED'S AVAILABLE SEAT MILES ROSE 107 TO 1384 BILLION FROM 1251 BILLION A YEAR EARLIER 9308050113 930805 MICHAELS STORES SALES IRVING TEXAS MICHAELS STORES INC SAID SAMESTORE SALES INCREASED 3 IN JULY WHILE TOTAL SALES JUMPED 22 TO 472 MILLION FROM 388 MILLION A YEAR EARLIER THE RETAILER SAID SECONDQUARTER SALES INCREASED 24 TO 1154 MILLION FROM 934 MILLION IN THE SAME PERIOD A YEAR AGO SALES AT STORES OPEN MORE THAN A YEAR INCREASED 5 DURING THE QUARTER 9308050112 930805 GUARANTY NATIONAL NOTES REVISED ENGLEWOOD COLO GUARANTY NATIONAL CORP AND ORION CAPITAL CORP SAID THEY AGREED TO REVISE TERMS OF THE 209 MILLION IN GUARANTY SUBORDINATED NOTES HELD BY ORION GUARANTY A COMMERCIAL AND AUTOMOBILE INSURANCE COMPANY SAID THE NEW NOTES CARRY AN INTEREST RATE OF 785 DOWN FROM 95 PRINCIPAL REPAYMENT TERMS ALSO HAVE BEEN CHANGED TO 12 EQUAL SEMIANNUAL INSTALLMENTS BEGINNING JAN 1 1998 WITH FINAL PAYMENT ON JULY 1 2003 THE ORIGINAL NOTES CALLED FOR PRINCIPAL PAYMENTS TO BEGIN APRIL 1 1994 9308050111 930805 TECHNOLOGY SCIOS NOVA IN PACT WITH J&J MOUNTAIN VIEW CALIF SCIOS NOVA INC SAID IT SIGNED AN AGREEMENT WITH JOHNSON & JOHNSON'S MCNEIL PHARMACEUTICAL UNIT TO JOINTLY MARKET HALDOL DECANOATE AN INJECTABLE DRUG USED FOR CONTROLLING PSYCHOTIC SYMPTOMS UNDER THE FIVEYEAR AGREEMENT THE TWO COMPANIES WILL JOINTLY MARKET THE DRUG IN THE US WITH MCNEIL MANUFACTURERING AND DISTRIBUTING HALDOL SCIOS NOVA WILL RECEIVE QUARTERLY PAYMENTS BASED ON SALES WITH AN OPTION TO RENEW THE AGREEMENT FOR THREE ADDITIONAL YEARS ADDITIONAL TERMS WEREN'T DISCLOSED 9308050110 930805 MARKETING & MEDIA PRODIGY AND TIMES MIRROR REACH PACT TO FORM COMPUTERBASED DATA NETWORK BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES PRODIGY SERVICES CO BEAT OUT RIVAL AMERICA ONLINE INC TO FORM A NEW COMPUTER INFORMATION NETWORK WITH TIMES MIRROR CO THE LATEST IN A SERIES OF ALLIANCES BETWEEN MEDIA COMPANIES AND PROVIDERS OF HOMECOMPUTER SERVICES THE PACT WILL ALLOW READERS OF TIMES MIRROR NEWSPAPERS TO SUBSCRIBE TO LOCAL COMPUTERBASED INFORMATION SERVICES FOR A FLAT FEE AND TO NATIONAL PRODIGY SERVICES FOR AN ADDITIONAL CHARGE PRODIGY'S TWO MILLION SUBSCRIBERS WOULD PAY A MONTHLY FEE TO GET TIMES MIRROR INFORMATION SERVICES IN ADDITION TO SAMEDAY NEWSPAPER TEXT THE SERVICE PROVIDES ACCESS TO LOCAL COMPUTER BULLETIN BOARDS PAST ARTICLES AND SUCH INFORMATION AS RESTAURANT REVIEWS AND GOLF STATISTICS TIMES MIRROR'S FLAGSHIP NEWSPAPER THE LOS ANGELES TIMES ALSO HOPES TO BROADEN ITS ADVERTISING BASE THROUGH ADDING ONLINE SHOPPING SERVICES TIMES MIRROR AND PRODIGY SAID THEY WILL BEGIN THE SERVICE IN EARLY 1994 WITH THE LOS ANGELES TIMES AND TIMES MIRROR'S NEWSDAY AND NEW YORK NEWSDAY PUBLICATIONS THE ARRANGEMENT EVENTUALLY WILL BE EXTENDED TO TIMES MIRROR'S FIVE OTHER NEWSPAPERS PRODIGY IS A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP ARMONK NY AND SEARS ROEBUCK & CO CHICAGO TIMES MIRROR HAD DISCUSSIONS WITH AMERICA ONLINE BUT CHOSE PRODIGY BECAUSE OF ITS LARGER SUBSCRIBER BASE AND LONGTIME COMMITTED PARTNERS EUGENE FALK THE LOS ANGELES TIMES'S EXECUTIVE VICEPRESIDENT AND GENERAL MANAGER SAID IN AN INTERVIEW FOR ITS PART AMERICA ONLINE AND TIMES MIRROR HAD A DIFFERENT VIEW ON HOW BEST TO EXECUTE A NEWSPAPER PARTNERSHIP SAID A SPOKESWOMAN FOR AMERICA ONLINE THE VIENNA VA COMPANY HAS 320000 SUBSCRIBERS AND IS ALREADY IN VENTURES WITH TRIBUNE CO CHICAGO AND KNIGHTRIDDER INC'S SAN JOSE MERCURY NEWS AMERICA ONLINE SCORED A SMALL COUP OF ITS OWN WITH A NEW AGREEMENT WITH WALT DISNEY CO'S PUBLISHING UNIT TO CARRY THE ENTERTAINMENT COMPANY'S DISNEY ADVENTURES MAGAZINE FOR CHILDREN THE NEW SERVICE SCHEDULED TO START IN A WEEK WILL CARRY THE FULL TEXT OF THE MAGAZINE AND ALLOW ITS EDITORS TO COMMUNICATE WITH READERS BY COMPUTER TERMS OF THE AGREEMENT WEREN'T AVAILABLE THE TIMES MIRRORPRODIGY DEAL IS THE LATEST MOVE IN THE NEWSPAPER INDUSTRY'S SCRAMBLE TO HOOK UP TO ONLINE SERVICES FOLLOWING FAILED ATTEMPTS AT ELECTRONIC PUBLISHING IN THE 1980S BOTH KNIGHTRIDDER AND TIMES MIRROR LOST MILLIONS ON SUCH VENTURES I THINK NEWSPAPERS AND OTHER PARTNERS INVOLVED RUSHED THE TECHNOLOGICAL CAPABILITY THAT EXISTED AT THAT POINT SAID MR FALK WHO WORKED FOR KNIGHTRIDDER IN 1986 WHEN THE COMPANY SCRAPPED ITS THREEYEAROLD VIEWTRON SERVICE TIMES MIRROR'S ELECTRONIC NEWSPAPER SERVICE GATEWAY FOLDED THE SAME YEAR CONSUMERS TODAY ARE MUCH MORE COMPUTER LITERATE HE SAID MEDIA ANALYSTS AGREED NOTING THAT THE SUBSEQUENT SPREAD OF NATIONAL COMPUTER SERVICES HAS ENABLED NEWSPAPERS TO PUBLISH ELECTRONICALLY WITHOUT HAVING TO SET UP THEIR OWN COSTLY DISTRIBUTION NETWORKS THE NEWEST DEAL COMES ON THE HEELS OF AN AGREEMENT BETWEEN PRODIGY AND COX ENTERPRISES INC THAT VENTURE ANNOUNCED LAST MONTH WOULD ENABLE COX'S NEWSPAPERS TO PUBLISH ELECTRONICALLY WHILE GIVING PRODIGY A NEW MARKETING OUTLET FOR ITS PACKAGE OF FINANCIAL TRAVEL AND SHOPPING SERVICES TIMES MIRROR SAID IT PLANS TO COLLABORATE WITH COX NEWSPAPERS IN DEVELOPING ONLINE SERVICES MR FALK DECLINED TO ELABORATE 9308050109 930805 AIRLINE PASSENGER TRAFFIC WASHINGTON AIRLINE PASSENGER TRAFFIC BETWEEN THE US AND OTHER COUNTRIES ROSE 10 LAST YEAR AND US CARRIERS PICKED UP 54 OF THE MARKET THE TRANSPORTATION DEPARTMENT SAID THE GOVERNMENT RECORDED 873 MILLION PASSENGERS FLYING BETWEEN THE US AND OTHER COUNTRIES IN 1992 AND 791 MILLION IN 1991 THE PERCENTAGE INCREASE WAS SIMILAR TO PREVIOUS YEARS AND US CARRIERS' MARKET SHARE ROSE SLIGHTLY FROM 53 IN 1991 CANADA HAD THE MOST PASSENGER TRAFFIC TO AND FROM THE US FOLLOWED BY THE UK JAPAN MEXICO AND GERMANY ACCORDING TO THE DEPARTMENT 9308050108 930805 TECHNOLOGY ALPHAGRAPHICS APPLE KODAK SET PHOTO CD ACCORD BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL EASTMAN KODAK CO ROCHESTER NY SAID IT ENTERED INTO AN AGREEMENT WITH APPLE COMPUTER INC AND QUICKPRINT CHAIN ALPHAGRAPHICS INC TO DEVELOP AND MARKET PUBLISHING APPLICATIONS FOR KODAK'S PHOTO CD PRODUCT THE MOVE GIVES KODAK AN IMPORTANT NEW OUTLET FOR PHOTO CD A TECHNOLOGY FOR STORING PHOTOS ON COMPACT DISKS SO THEY CAN BE VIEWED AND EDITED ON TELEVISION SETS OR COMPUTERS UNTIL NOW KODAK HAS TARGETED PHOTO CD MOSTLY AT COUCH POTATOES WHO STORE PICTURES OF THEIR FAMILIES AND VACATIONS ON COMPACT DISKS AND WATCH THE PICTURES ON TV SETS HOOKED UP TO PHOTO CD PLAYERS THIS STRATEGY MAKES PHOTOFINISHERS AND CONSUMER ELECTRONICS STORES THE PRIMARY SELLERS OF PHOTO CD NOW BY OFFERING THE PRODUCT THROUGH CLOSELY HELD ALPHAGRAPHICS WHICH IS BASED IN TUCSON ARIZ AND HAS 240 US STORES AND 90 OVERSEAS KODAK HAS BETTER ACCESS TO THE LUCRATIVE SMALLBUSINESS MARKET ALTHOUGH RETAILERS SAY SELLING PHOTO CD TO CONSUMERS IS DIFFICULT BUSINESSES HAVE BEEN CLAMORING FOR THE TECHNOLOGY BECAUSE IT ALLOWS THEM TO LAY OUT ADVERTISEMENTS BROCHURES AND NEWSLETTERS MORE QUICKLY AND CHEAPLY THAN THEY COULD BEFORE INSTEAD OF CUTTING AND PASTING PHOTOS TOGETHER WITH WORDS OR HIRING PRINTERS TO DO IT FOR THEM BUSINESSES CAN NOW DOWNLOAD PHOTOS FROM COMPACT DISKS EDIT THEM WITH SOFTWARE PROGRAMS AND MERGE THEM WITH TEXT ALL ON A COMPUTER WHERE OTHERWISE COSTLY MISTAKES CAN BE ERASED WITH A KEYSTROKE KODAK SAID IT WOULD SELL PHOTO CD PLAYERS THROUGH ALPHAGRAPHICS AND ALSO ALLOW THE CHAIN TO TRANSFER PHOTOS ONTO COMPACT DISKS A SERVICE NOW OFFERED ONLY BY PHOTOFINISHERS THOMAS E FERGUSON GENERAL MANAGER FOR NATIONAL ACCOUNTS OF KODAK'S OFFICE IMAGING DIVISION SAID KODAK IS IN TALKS WITH OTHER QUICKPRINT CHAINS SUCH AS KINKO'S GRAPHICS CORP ON SIMILAR ALLIANCES HE SAID IT'S CERTAINLY POSSIBLE THAT KODAK WILL ANNOUNCE ANOTHER ALLIANCE BY THE END OF THE YEAR 9308050106 930805 AMERICAN AIR JULY TRAFFIC FELL FORT WORTH TEXAS AMERICAN AIRLINES SAID JULY TRAFFIC FELL 9 THE AIRLINE UNIT OF AMR CORP SAID THE HIGHER LEVEL OF TRAFFIC A YEAR EARLIER WAS PARTLY ATTRIBUTABLE TO THE HALFPRICE SALE THAT OCCURRED IN MUCH OF THE INDUSTRY LAST SUMMER THUS AMERICAN FLEW 931 BILLION REVENUE PASSENGER MILES IN JULY COMPARED WITH 1023 BILLION A YEAR AGO A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER CARRIED ONE MILE IN THE FIRST SEVEN MONTHS AMERICAN TRAFFIC ROSE 46 TO 5733 BILLION REVENUE PASSENGER MILES FROM 5481 BILLION THE AIRLINE'S JULY LOAD FACTOR OR THE PERCENTAGE OF SEATS FILLED FELL TO 653 FROM 756 A YEAR EARLIER LOAD FACTOR FOR THE FIRST SEVEN MONTHS FELL TO 606 FROM 630 9308050105 930805 COUNTERPOINT THE PERSECUTION OF ROBERT ALTMAN BY RICHARD O CUNNINGHAM I THINK IT WAS WILL ROGERS COMMENTING ON A POLITICIAN OF HIS ERA WHO SAID IT'S NOT WHAT HE DOESN'T KNOW THAT BOTHERS ME IT'S ALL THE THINGS HE KNOWS FOR SURE THAT JUST AIN'T SO THAT'S THE WAY I FEEL ABOUT THE BCCI INDICTMENTS OF CLARK CLIFFORD AND ROBERT ALTMAN AS AN ATTORNEY IN WASHINGTON I HAVE KNOWN BOB ALTMAN NOW ON TRIAL IN NEW YORK FOR MORE THAN 20 YEARS AND HAVE CLOSELY FOLLOWED HIS CASE AS THE TRIAL HAS UNFOLDED THE PROSECUTION'S CASE HAS BEEN REVEALED FOR WHAT IT WAS FROM THE START AN EDIFICE BUILT ON MYTHS MISUNDERSTANDINGS AND SELFCONTRADICTING TESTIMONY PRESENTED BY QUESTIONABLE WITNESSES LAST WEEK THE JUDGE THREW OUT FOUR OF THE MOST SERIOUS CHARGES INCLUDING THE BRIBERY COUNT FINDING NO EVIDENCE WHATSOEVER TO SUPPORT THEM AS THIS SHATTERED CASE NOW HEADS TO THE JURY ON THE REMAINING PERIPHERAL ALLEGATIONS THE PUBLIC SHOULD UNDERSTAND THE FALLACIES OF THE PROSECUTORS' MAJOR MYTHS MYTH 1 IT HAS BEEN PROVED THAT BCCI SECRETLY OWNED FIRST AMERICAN BANK IT IS FROM THIS SOCALLED FACT THAT A DAMNING IMPLICATION ARISES AGAINST MESSRS CLIFFORD AND ALTMAN THE IMPLICATION GOES LIKE THIS SINCE IT HAS BEEN PROVED THAT BCCI SECRETLY OWNS FIRST AMERICAN TWO PEOPLE AS SMART AS MESSRS CLIFFORD AND ALTMAN DEEPLY INVOLVED IN FIRST AMERICAN'S MANAGEMENT AS THEY WERE MUST HAVE KNOWN OF BCCI'S OWNERSHIP THE TRUTH IS THAT THE OWNERSHIP QUESTION IS VERY MUCH IN DOUBT SHEIK KAMAL ADHAM A FIRST AMERICAN SHAREHOLDER WHO PLEADED GUILTY TO A MISDEMEANOR IN JULY 1992 AND WAS THE GOVERNMENT'S SUPPOSED STAR WITNESS IN THE ALTMAN TRIAL TESTIFIED THAT HE WAS NOT A NOMINEE FOR BCCI THE GOVERNMENT PUT ON NO OTHER SHAREHOLDER CLAIMING TO BE A BCCI NOMINEE MOREOVER THE RECORDS OF BCCI REPLETE WITH DOUBLE SETS OF BOOKS AND FRAUDULENT LOAN DOCUMENTS CREATED TO INFLATE BCCI'S ASSET VALUES DO NOT PROVE OWNERSHIP OF FIRST AMERICAN THE PRINCIPAL EVIDENCE IF YOU CAN CALL IT THAT OF BCCI OWNERSHIP CONSISTS OF INFERENCES DRAWN FROM THE EXISTENCE OF SOME NONPERFORMING BCCI LOANS MADE TO FIRST AMERICAN SHAREHOLDERS IN ADDITION BCCI'S LIQUIDATING TRUSTEE TOUCHE ROSS PLEADED GUILTY TO ILLEGALLY OWNING FIRST AMERICAN AFTER BCCI WAS SHUT DOWN BY REGULATORS IN JULY 1991 BUT SINCE TOUCHE ROSS WAS SIMPLY SETTLING A CLAIM AND ITSELF HAD NO DIRECT KNOWLEDGE OF THE OWNERSHIP QUESTION THE PLEA PROVES LITTLE IF BCCI'S OWNERSHIP OF FIRST AMERICAN REMAINS A MYSTERY TODAY AFTER YEARS OF INVESTIGATION BY GOVERNMENT AGENCIES IT IS HARD TO SEE HOW MR ALTMAN CAN BE CHARGED WITH HAVING KNOWN THE FACTS WHATEVER THOSE FACTS ARE MYTH 2 BCCI CONTROLLED FIRST AMERICAN AND USED IT FOR ILLEGAL PURPOSES IF THE RECORD REMAINS MURKY AS TO WHETHER BCCI OWNED FIRST AMERICAN IT IS TOTALLY CLEAR THAT BCCI EXERCISED NO CONTROL OVER FIRST AMERICAN AND DID NOT INVOLVE IT IN ANY OF BCCI'S ILLEGAL ACTIVITIES EXHAUSTIVE AUDITS OF FIRST AMERICAN BY THE FEDERAL RESERVE BOARD HAVE CONCLUDED THAT BCCI NEVER DICTATED ANY BANK DECISIONS OR INTERFERED WITH OPERATIONS IN ANY WAY AND THAT HAS BEEN THE TESTIMONY OF EVERY WITNESS IN THE ALTMAN TRIAL THERE WERE NO SWEETHEART LOANS TO BCCI INSIDERS NO MONEY LAUNDERING THROUGH FIRST AMERICAN NO SKIMMING OF FIRST AMERICAN PROFITS BY BCCI ALL THINGS YOU WOULD EXPECT TO FIND IF BCCI TRULY OWNED FIRST AMERICAN THE FED'S AUDITS HAVE FOUND THAT FIRST AMERICAN WAS A CLEAN HONESTLY RUN BANK IT ALWAYS EXCEEDED ITS REGULATORY ASSET REQUIREMENTS UNLIKE BCCI NO FIRST AMERICAN DEPOSITOR EVER LOST A PENNY AND NO GOVERNMENT BAILOUT WAS REQUIRED MYTH 3 AS BCCI'S LAWYERS MESSRS CLIFFORD AND ALTMAN MUST HAVE KNOWN ABOUT ITS CRIMINAL ACTIVITY PRIOR TO THE TIME IT WAS EXPOSED AS A CRIMINAL ENTERPRISE BCCI ENJOYED WIDE RESPECTABILITY IN THE FINANCIAL COMMUNITY BANK OF AMERICA FOR MANY YEARS WAS ONE OF ITS MAJOR SHAREHOLDERS ALONG WITH THE RULER OF ABU DHABI AND MEMBERS OF THE ROYAL FAMILIES OF OTHER MIDDLE EASTERN COUNTRIES BCCI HAD CORRESPONDENT BANKING RELATIONSHIPS WITH AMERICAN EXPRESS AND BANK OF AMERICA ITS DEBT WAS UNDERWRITTEN BY MERRILL LYNCH PRUDENTIALBACHE FIRST CHICAGO AND KIDDER PEABODY ITS FINANCIALS WERE CERTIFIED BY PRICE WATERHOUSE THESE COMPANIES DEALT WITH BCCI FOR A DECADE OR MORE WITHOUT DISCOVERING ITS CORRUPT INNER CORE MESSRS CLIFFORD AND ALTMAN REPRESENTED BCCI ON CERTAIN SPECIALIZED LEGAL MATTERS BUT SO DID MANY OTHER PROMINENT LAW FIRMS NONE OF THESE PEOPLE KNEW THE TRUTH ABOUT BCCI NOR DID THE BANK OF ENGLAND WHICH REGULATED BCCI AND THUS HAD ENTRY INTO ITS BOOKS AND RECORDS WHICH MESSRS CLIFFORD AND ALTMAN DID NOT MYTH 4 MONEY ENTICED MESSRS CLIFFORD AND ALTMAN TO ENGAGE IN A CRIMINAL CONSPIRACY TO ME THE MOST RIDICULOUS ASPECT OF THE ALLEGATIONS AGAINST MESSRS CLIFFORD AND ALTMAN IS THAT IT WAS THE MONEY THAT PROMPTED THEM TO ENGAGE IN THE ALLEGED CRIMINAL CONSPIRACY AT THE TIME OF THESE EVENTS MR CLIFFORD WAS IN HIS 70S A MULTIMILLIONAIRE A FORMER CABINET OFFICER AND ADVISER TO PRESIDENTS MR ALTMAN WAS AT THE START OF AN EXTRAORDINARILY PROMISING CAREER THE LAW FIRM WAS ONE OF THE BEST IN WASHINGTON WITH MORE WORK THAN IT COULD HANDLE AND NEVER TOUCHED BY SCANDAL IF THERE WERE TWO MEN WHO HAD EVERYTHING TO LOSE BY IMPROPER OR ILLEGAL CONDUCT THEY WERE MESSRS CLIFFORD AND ALTMAN AND WHAT WERE THE HUGE FINANCIAL REWARDS THAT SUPPOSEDLY LURED THEM INTO CRIMINAL CONDUCT NOT MUCH AS IT TURNS OUT MR CLIFFORD DREW A MODEST 50000 SALARY FROM FIRST AMERICAN MR ALTMAN NO SALARY AT ALL THEY HAD NO EXPENSE ACCOUNTS NO LAVISH PERKS OR BENEFITS THEY ENGAGED IN ONE STOCK DEAL IN FIRST AMERICAN SHARES FULLY DISCLOSED ON THE PUBLIC RECORD IN WHICH MR CLIFFORD NETTED 275 MILLION AND MR ALTMAN 135 MILLION THIS WAS THEIR SOLE REWARD FOR NINE YEARS OF BUILDING FIRST AMERICAN BANK FROM A 2 BILLION TO AN 11 BILLION INSTITUTION EACH OF THEM EARNED FAR MORE FROM THEIR LAW PRACTICE DURING THAT PERIOD BY CONTRAST ACCORDING TO AN ARTICLE IN THE WASHINGTON POST MR ALTMAN'S SUCCESSOR GEORGE DAVIS RECEIVED A SALARY OF 600000 PLUS PERKS A SIGNING BONUS OF 100000 AND WANTED A 10 MILLION COMMISSION JUST TO SELL THE BANK BOB ALTMAN'S CASE IS EXPECTED TO GO TO THE JURY NEXT WEEK WHEN THE JURY ACQUITS HIM ON ALL THE REMAINING COUNTS AS I AM CONFIDENT IT WILL ONE CAN ONLY HOPE THE WORLD WILL REALIZE THAT THIS IS A CASE THAT SHOULD NEVER HAVE BEEN BROUGHT MR CUNNINGHAM PRACTICES LAW IN WASHINGTON 9308050104 930805 DIVIDENDS WYNN'S INTERNATIONAL INC WYNN'S INTERNATIONAL INC OF ORANGE CALIF SAID ITS BOARD DECLARED A 3FOR2 STOCK SPLIT AND RAISED THE QUARTERLY DIVIDEND BY 10 ON A POSTSPLIT BASIS AN 11 CENTASHARE DIVIDEND WILL BE PAID SEPT 30 TO STOCK OF RECORD AUG 26 THE QUARTERLY RATE HAD BEEN 15 CENTS A SHARE EQUAL TO 10 CENTS A SHARE ADJUSTED FOR THE STOCK SPLIT THE ADDITIONAL SHARES WILL BE DISTRIBUTED SEPT 17 TO SHAREHOLDERS OF RECORD AUG 26 INCREASING THE NUMBER OUTSTANDING TO ABOUT 55 MILLION WYNN'S IS A SUPPLIER OF PETROCHEMICAL PRODUCTS AUTOMOTIVE AIR CONDITIONERS AND BUILDERS HARDWARE 9308050103 930805 FOREIGN EXCHANGE DOLLAR GAINS A BIT ON YEN PROFITTAKING MARK DECLINES AGAINST OTHER CURRENCIES BY XANDER MELLISH AND TERENCE ROTH STAFF REPORTERS OF THE WALL STREET JOURNAL THE DOLLAR ROSE SLIGHTLY BOOSTED BY PROFITTAKING ON THE YEN'S RECENT ADVANCE AND BY THE MARK'S DECLINE AGAINST ITS EUROPEAN COUNTERPARTS GERMANY'S CENTRAL BANK CUT THE INTEREST RATE ON ITS SECURITIESREPURCHASE AGREEMENTS FOR THE SECOND DAY IN A ROW A STEP THAT ANALYSTS SAID COULD SIGNAL A FORTHCOMING REDUCTION IN ITS DISCOUNT RATE LATE IN NEW YORK YESTERDAY THE DOLLAR WAS QUOTED AT 17090 MARKS UP A BIT FROM 17070 MARKS LATE TUESDAY AND AT 10488 YEN UP FROM 10444 YEN STERLING WAS TRADING AT 15015 UP SLIGHTLY FROM TUESDAY'S 15008 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10516 YEN AND AT 17117 MARKS CURRENCIES OF OTHER EUROPEAN NATIONS WERE PUMMELED AGAINST THE MARK LAST WEEK LEADING TO A DECISION OVER THE WEEKEND TO WIDEN TRADING BANDS IN THE EXCHANGE RATE MECHANISM OR ERM OF THE EUROPEAN MONETARY SYSTEM WITH STABILITY HAVING RETURNED TO THE FOREIGNEXCHANGE MARKET THOSE CURRENCIES CONTINUED TO SEARCH YESTERDAY FOR THEIR LEVELS OF FUNDAMENTAL VALUE THE FRENCH FRANC SPANISH PESETA BELGIAN FRANC AND DANISH KRONE ALL GAINED ON THE MARK WITH THE BELGIAN FRANC AND THE KRONE RECEIVING SUPPORT FROM THEIR CENTRAL BANKS IN THE FORM OF UNUSUALLY HIGH INTEREST RATES PROFITTAKING ON THE MARK'S RECENT GAINS WAS A FACTOR IN ITS DECLINE SAID GERHARD STEJSKAL A MANAGING DIRECTOR AT DEUTSCHE BANK IN NEW YORK BUT SO WAS CONFIDENCE THAT THE OTHER NATIONS IN THE ERM WOULD SOON CUT INTEREST RATES TO SPUR THEIR ECONOMIES THE MARKET IS LOOKING FAR AHEAD OF ITSELF AND ANTICIPATING STIMULATIVE EFFECTS TO COME FROM INTERESTRATE CUTS HE SAID IF THE ERM COUNTRIES' ECONOMIES STRENGTHEN THEIR CURRENCIES WOULD PRESUMABLY GAIN VALUE AS SPENDING AND THUS DEMAND FOR THE CURRENCIES ROSE THE MARK FELL YESTERDAY TO 34617 FRENCH FRANCS FROM 34778 FRANCS TUESDAY 39317 KRONER FROM 39572 KRONER 2092 BELGIAN FRANCS FROM 2125 FRANCS AND 8085 PESETAS FROM 8120 PESETAS UNDER THE ERM'S WEEKEND AGREEMENT MOST CURRENCIES IN THE MECHANISM CAN NOW FLUCTUATE 15 ABOVE OR BELOW THEIR CENTRAL PARITIES A MUCH WIDER BAND THAN THE PREVIOUS 225 RANGE THE AGREEMENT IS EXPECTED TO ALLOW COUNTRIES WITH LOW INFLATION SUCH AS FRANCE AND DENMARK TO CUT INTEREST RATES WITHOUT WAITING FOR GERMANY WHICH IS WORRIED ABOUT INFLATION IN THE WAKE OF THE DECISION TO WIDEN THE CURRENCY BANDS BELGIUM AND DENMARK WHICH RAISED INTEREST RATES LAST WEEK TO PROTECT THEIR CURRENCIES AGAINST SPECULATORS HAVEN'T CUT THEIR RATES PLEDGING INSTEAD TO KEEP THEIR CURRENCIES STRONG BELGIUM WANTS TO KEEP ITS CURRENCY WITHIN THE OLD 225 FLUCTUATION BAND AGAINST THE MARK AS ITS NEIGHBOR THE NETHERLANDS IS DOING BELGIAN OVERNIGHT INTERBANK FUNDS YESTERDAY WERE QUOTED AROUND 20 A LEVEL THAT'S LIKELY TO BE PAINFUL FOR THE BELGIAN ECONOMY IN DENMARK WHERE OVERNIGHT RATES WERE QUOTED AS HIGH AS 150 YESTERDAY MARIANNE JELVED THE ECONOMY MINISTER WENT SO FAR AS TO SAY THAT KEEPING THE KRONE STRONG WAS THE COUNTRY'S TOP PRIORITY EVEN IF IT LED TO HIGHER UNEMPLOYMENT GERMANY'S INTERESTRATE OUTLOOK APPEARED TO CHANGE WITH THE BUNDESBANK'S DECISION TO LOWER ITS SECURITIESREPURCHASE RATE THE CENTRAL BANK ASSIGNED A VARIABLE RATE OF BETWEEN 67 AND 674 TO ITS FOURWEEK REPURCHASE AGREEMENTS WHICH WERE OFFERED ON A BIDDING BASIS THAT WAS DOWN FROM A FIXED 68 RATE FOR TWOWEEK REPO ARRANGEMENTS ANNOUNCED TUESDAY TUESDAY'S RATE REPRESENTED A DECREASE YESTERDAY'S REDUCTION SURPRISED ANALYSTS BECAUSE IT LEFT THE REPO RATE BELOW THE GERMAN DISCOUNT RATE FOR THE FIRST TIME SINCE THE REPO FACILITY WAS INTRODUCED IN 1979 THE BUNDESBANK USES THE REPO RATE TO STEER MONEYMARKET RATES BETWEEN ITS DISCOUNT RATE WHICH ACTS AS THE FLOOR FOR SHORTTERM RATES AND ITS LOMBARD RATE WHICH ACTS AS THE CEILING UNDER THE DISCOUNT FACILITY BANKS CAN BORROW LIMITED FUNDS FROM THE BUNDESBANK AT A LOW RATE CURRENTLY 675 THE LOMBARD FACILITY WITH A CURRENT RATE OF 775 OFFERS UNLIMITED FUNDS AT A HIGHER PENALTY RATE THE CENTRAL BANK'S ACTION CLEARLY IS A SIGNAL THAT A DISCOUNTRATE REDUCTION IS IN THE PIPELINE AND THAT IT COULD COME IN LATE AUGUST OR EARLY SEPTEMBER SAID GERHARD GREBE CHIEF ECONOMIST AT BANK JULIUS BAER IN FRANKFURT THEY MUST HAVE DONE THIS GRINDING THEIR TEETH THE WAY RATES ARE STRUCTURED NOW THEIR ENTIRE MARKETSTEERING MECHANISM HAS BROKEN DOWN A LOWER GERMAN DISCOUNT RATE COULD HELP STEADY OTHER EUROPEAN CURRENCIES IT ALSO WOULD PROVIDE SCOPE FOR OTHER EUROPEAN CENTRAL BANKS TO CUT INTEREST RATES TO STIMULATE THEIR ECONOMIES 9308050102 930805 ZALE BOARD SAID TO HAVE FORCED CHIEF'S OUSTER BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS DEAN R GROUSSMAN WHO RESIGNED TUESDAY AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ZALE CORP WAS FORCED OUT BY THE JEWELRY RETAILER'S NEWLY INSTALLED BOARD A PERSON CLOSE TO THE COMPANY SAID THE DECISION CAME AS A SURPRISE TO THE 55YEAROLD MR GROUSSMAN WHO WAS ALSO A MEMBER OF THE NEW BOARD WHILE THE BOARD HAD ONLY OFFICIALLY BEEN SEATED FOR ABOUT A WEEK THE PERSON SAID VARIOUS MEMBERS HAD BEEN MEETING INFORMALLY FOR MONTHS IMMERSING THEMSELVES IN THE OPERATIONS OF THE NATION'S LARGEST JEWELRY RETAILER WHICH JUST EMERGED FROM BANKRUPTCY PROCEEDINGS THE PERSON SAID THE BOARD EVENTUALLY CAME TO AGREE WITH COMPLAINTS FROM CREDITORS THAT MR GROUSSMAN WHO WAS APPOINTED CEO IN SEPTEMBER 1992 OVER THE PROTESTS OF SOME CREDITOR GROUPS DIDN'T HAVE ENOUGH EXPERIENCE IN JEWELRY RETAILING TO REBUILD ZALE HE SAID THE BOARD ALSO FELT THAT MR GROUSSMAN WASN'T AGGRESSIVE ENOUGH MR GROUSSMAN REACHED AT HIS HOME YESTERDAY DECLINED TO COMMENT THE COMPANY ALSO DECLINED TO DISCUSS MR GROUSSMAN'S DEPARTURE THOUGH HE HAD PREVIOUSLY BEEN WITH ZALE FROM 1979 TO 1985 MR GROUSSMAN HAD SPENT THE YEARS SINCE THEN RUNNING A CANADIAN TIRE CONCERN AND WAS ESSENTIALLY BROUGHT BACK TO ZALE AS AN OUTSIDER HE HAD NO CLOSE CONNECTIONS WITH ANY OF THE NEW BOARD MEMBERS AND AS A RESULT NO STRONG SUPPORTERS AMONG THEM MR GROUSSMAN HAD JUST LED THE COMPANY THROUGH A TURBULENT RESTRUCTURING IN WHICH IT HAD CLOSED ONETHIRD OF ITS STORES LEAVING ABOUT 1270 LOCATIONS UNDER TERMS OF HIS CONTRACT HE HAD 90 DAYS FROM THE TIME ZALE WAS RELEASED FROM BANKRUPTCYCOURT PROTECTION TO NEGOTIATE A NEW AGREEMENT WITH THE BOARD BUT THE OTHER DIRECTORS AFTER A UNANIMOUS VOTE TOLD HIM TUESDAY THEY WANTED HIS RESIGNATION WHICH HE DELIVERED ANALYSTS SAID THAT WHILE MR GROUSSMAN HAD TAKEN STEPS TO SLASH OVERHEAD AND CLOSE UNPROFITABLE STORES ZALE STILL RELIED TOO MUCH ON CONSIGNMENT INVENTORY WHICH ALLOWS THE COMPANY TO PAY SUPPLIERS FOR MERCHANDISE ONLY AFTER IT'S SOLD BUT FOR HIGHER FEES ANALYSTS ALSO SAID THAT DESPITE ITS PLAN TO END ALMOST YEARROUND DISCOUNTING ZALE HADN'T MOVED QUICKLY TO DO SO A COMPANY SPOKESWOMAN SAID ZALE EXPECTS THE SEARCH FOR A NEW CHIEF EXECUTIVE TO TAKE THREE TO SIX MONTHS 9308050100 930805 REVIEW & OUTLOOK EDITORIAL ASIDES OPENING THE BLACK CAUCUS WE'RE PLEASED TO REPORT THE CONGRESSIONAL BLACK CAUCUS ANNOUNCED YESTERDAY THAT IT'S AGREED TO LET GOP REP GARY FRANKS FULLY PARTICIPATE IN ITS MEETINGS AFTER ALL REVERSING ITS VOTE TO BAR HIM FROM ALL BUT THE FIRST 30 MINUTES OF THEIR WEEKLY MEETINGS CHAIRMAN KWEISI MFUME SAID THE NEW ARRANGEMENT SHOWS THE CAUCUS CAN ACCOMMODATE DIVERSITY AND PLURALISM WE LOOK FORWARD TO THE CAUCUS HOLDING VIGOROUS DEBATES ON SUCH ISSUES AS HOW THE INNER CITIES WOULD BENEFIT FROM A CUT IN THE CAPITAL GAINS TAX 9308050099 930805 POLITICS & POLICY WHILE FOLEYGEPHARDT TAG TEAM' TRIES TO KEEP HOUSE MEMBERS IN LINE BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN CAP AND SHIRTSLEEVES IS A FORTYSOMETHING RICHARD GEPHARDT THE HOUSE MAJORITY LEADER PITCHING TO HIS BELOVED ST LOUIS CARDINALS STANDING WITH HIM ON THE DIRT MOUND WEARING A DARK SUIT AND THE BEMUSED LOOK OF A MAN LOST AT THE BALLPARK IS A TALL GRAYING FIGURE SPEAKER THOMAS FOLEY THE PHOTOGRAPH WHICH HANGS IN MR GEPHARDT'S CAPITOL OFFICE IS AN APT PORTRAIT OF THE TWO MEN ON WHOM PRESIDENT CLINTON MUST RELY TO WIN TODAY'S SCHEDULED HOUSE VOTE ON HIS ECONOMIC PLAN MR FOLEY BRINGS INTELLECT MR GEPHARDT METHOD TOGETHER THIS PAIR MUST NOW PRODUCE THE MUSCLE TO KEEP SKITTISH DEMOCRATS IN LINE IT'S NO EASY TASK THE DEFICIT BILL ONLY SURVIVED THE HOUSE BY A NARROW 219213 VOTE IN MAY AND THOUGH OUTWARDLY CONFIDENT THE LEADERSHIP KNOWS THE DAILY AND HIGHLY PUBLICIZED DEMANDS OF SENATE DEMOCRATS HAVE TAKEN A TOLL RANKANDFILE MEMBERS ARE BOTH RESENTFUL AND FEARFUL OF SENATE REJECTION THEY WILL PASS IT WON'T THEY MR GEPHARDT ASKS A REPORTER PLAINTIVELY THEY HAVE TO PASS IT IF WE PASS IT RIGHT IN RECENT DAYS THE TWO LEADERS HAVE HAD TO TAKE THE FIGHT TO A MORE PERSONAL LEVEL THEIR STAFFS HAVE FADED INTO THE BACKGROUND AND INSTEAD THE SPEAKER AND MAJORITY LEADER HAVE BEEN FACING DOWN COLLEAGUES DIRECTLY TO EXPEDITE ACTION AND GET THE VOTES NEEDED HOURS AFTER A SETTLEMENT WAS ANNOUNCED ON THE TAX PROVISIONS WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI TURNED WITH SURPRISE TO FIND MR FOLEY AT HIS OFFICE DOORWAY TUESDAY EVENING SEEKING FURTHER MODIFICATIONS TO HELP THE HOTEL AND CASINO INDUSTRY AND EASE THE BITE OF RETROACTIVE INCOMETAX INCREASES SOME THINGS JUST CANNOT BE DONE THROUGH STAFF SAYS THE SPEAKER WORRIED ABOUT THEIR OWN POLITICAL INTELLIGENCE MR FOLEY AND MR GEPHARDT TOGETHER WITH WHIP DAVID BONIOR RETIRED LAST WEEK TO THEIR OFFICES TO CALL MORE THAN 50 CONSERVATIVE HOUSE MEMBERS AND PAST OPPONENTS OF THE PACKAGE AND THE LINE OF VISITORS AND FAVORSEEKERS TO THE LEADERS' OFFICES HAS REPRESENTED A DAILY BULLETIN OF TROUBLE SPOTS AND BARGAINING ON THE FARFLUNG BUDGET RECONCILIATION BILL REP HAROLD VOLKMER A ROUGHHEWN MISSOURIAN ARRIVED AT MR GEPHARDT'S DOORWAY ONE DAY THIS WEEK TOSSED A SPENT CIGARETTE ON THE FLOOR AND PLUNGED INTO NEGOTIATIONS REGARDING A VOLATILE PROVISION AFFECTING THE MARKETING OF A HORMONE FOR DAIRY COWS MINUTES LATER ENERGY AND COMMERCE COMMITTEE CHAIRMAN JOHN DINGELL IN A SEERSUCKER SUIT ARRIVED TO APPEAL PROPOSED MEDICARE REDUCTIONS UPSTAIRS MR FOLEY MET THE NEXT DAY WITH THE AMERICAN ASSOCIATION OF RETIRED PERSONS HOPING TO ASSUAGE THE GROUP'S ANGER OVER CUTS IN THE HEALTHCARE PROGRAM IN THE HALLWAY OUTSIDE REP JIM CHAPMAN A TEXAN WHO HAD VOTED AGAINST THE BILL CAME LOOKING FOR OFFICE SPACE BUT ALSO FOUND HIMSELF LOBBIED ON THE DEFICIT BILL THE PRESSURE OF THE COMING VOTE SEEMS TO RID MR FOLEY OF HIS CUSTOMARY CAUTION AND LIKE A LUMBERING WATCHDOG HE COMES MORE ALIVE NONSENSE HE SAYS FLATLY WHEN REPORTERS SUGGEST DEMOCRATS HAVE REASON TO FEAR THE PACKAGE COULD HURT THEM POLITICALLY AND WHEN LIBERALS FAULT THE BILL FOR SACRIFICING THE PARTY'S SOCIAL AGENDA HE CHIDES THOSE WHO DEMAND PERFECTION FOR THEIR CONSCIENCE AND IGNORE THE POOR BLOKE BACK IN THE MINE MR FOLEY'S TASK HAS BEEN COMPLICATED BY THE HOUSE POST OFFICE SCANDAL WHICH NOW THREATENS TO LEAD TO AN INDICTMENT AGAINST TOP HOUSE TAX WRITER DAN ROSTENKOWSKI GOP ATTACKS FORCED THE SPEAKER TO GO TO THE FLOOR IN HIS OWN DEFENSE TWO WEEKS AGO AND CONSERVATIVE LAWMAKERS AND COMMENTATORS HAVE SOUGHT TO BUILD ON PUBLIC SKEPTICISM BY FOCUSING ATTENTION ON MR FOLEY'S QUICK PROFITS IN PAST STOCK DEALINGS UNRELATED TO THE POST OFFICE AFFAIR IT IS ALL THE MORE STRIKING THEN THAT MR FOLEY AND MR ROSTENKOWSKI HAVE CONTINUED TO WORK CLOSELY IN AN ATMOSPHERE WHERE TRUST IS PARAMOUNT HE DOESN'T PLAY A LOT OF GAMES SAYS THE SPEAKER OF MR ROSTENKOWSKI YOU FIND OUT WHERE HE IS AND HIS WORD IS VERY VERY GOOD MR GEPHARDT HAS BENEFITED IN TURN FROM HIS OWN CLOSE WORKING RELATIONSHIP WITH BUDGET DIRECTOR LEON PANETTA A FORMER CALIFORNIA CONGRESSMAN WHO SERVED WITH THE FUTURE LEADER AS YOUNG TURKS ON THE HOUSE BUDGET COMMITTEE WHEN OPPOSITION DEVELOPED TO FURTHER MEDICARE SAVINGS MR GEPHARDT'S RESPONSE WAS TO CALL IN AFFECTED CHAIRMEN AND PRESS FOR A RESOLUTION ALWAYS WITH MR PANETTA AT HIS SIDE THE RELENTLESS MEETINGS ARE PART OF THE GEPHARDT METHOD LEADING FINALLY TO MR FOLEY AS THE ULTIMATE COURT OF APPEALS IN THE SAME FASHION THE TWO MEN SOMETIMES HAVE A TAGTEAM APPROACH MAKING FOLLOWUP CALLS FOR ONE ANOTHER TO KEEP UP THE PRESSURE AND GET A BETTER READING ON A MEMBER'S VOTE AT LEAST A HALF DOZEN DEMOCRATS ARE EXPECTED TO TRADE PLACES SWITCHING POSITIONS ON THE BILL FROM THEIR VOTES LAST MAY AND FOR THE 52YEAROLD MR GEPHARDT WHO HAS FLOWN BACK AND FORTH BETWEEN WASHINGTON AND HIS FLOODRAVAGED DISTRICT IN MISSOURI THIS WEEK THE TASK OF KEEPING THEM IN LINE IS SOMEWHAT AKIN TO WHAT THE FLOODFIGHTERS FACE AT HOME THIS IS THE ULTIMATE SANDBAG OPERATION HE SAYS FILLING SANDBAGS AT HOME FILLING SANDBAGS HERE SEE RELATED ARTICLE POLITICS & POLICY DOING THE DEAL THE DEFICITREDUCTION CONFERENCE COUNTDOWN TO VOTE ON CLINTON PLAN NEGOTIATORS WILL FORGIVE MITCHELL IF HE DELIVERS SENATE WSJ AUG 5 1993 9308050097 930805 INTERNATIONAL JAPAN SAYS TROOPS FORCED WOMEN INTO PROSTITUTION BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S GOVERNMENT HOPING TO RESOLVE THE PERSISTENT AND EMBARRASSING COMPLAINTS OF SOME OF THE NATION'S WORLD WAR II VICTIMS ADMITTED THAT ITS MILITARY FORCED ASIAN WOMEN INTO PROSTITUTION HALF A CENTURY AGO THE CAREFULLY WORDED CONFESSION RELEASED YESTERDAY AFTER MONTHS OF DRAMATIC PUBLIC PLEAS FROM THE SURVIVING WOMEN AROUND THE REGION WAS DRAFTED AS MUCH TO ENHANCE JAPAN'S FUTURE AS TO LAY TO REST ITS PAST JAPAN WANTS A BIGGER DIPLOMATIC AND ECONOMIC ROLE IN ASIA YET ITS NEIGHBORS REMAIN WARY PARTLY BECAUSE THEY BELIEVE THE JAPANESE HAVEN'T FULLY ACKNOWLEDGED OR APOLOGIZED FOR THE SINS OF THE OLD IMPERIAL ARMY THESE WOMEN WERE FORCED TO MOVE WITH THE MILITARY AND WERE DEPRIVED OF THEIR FREEDOM AND HAD TO ENDURE MISERY THE GOVERNMENT REPORT SAID A GOVERNMENT SPOKESMAN SAID JAPAN EXTENDS SINCERE APOLOGIES AND REMORSE TO ALL THOSE WHO SUFFERED IMMEASURABLE PAIN AND INCURABLE PHYSICAL AND PSYCHOLOGICAL WOUNDS AS COMFORT WOMEN JAPANESE OFFICIALS CONTINUE TO USE THE EUPHEMISM OF THE TIME COMFORT WOMEN FOR THE WOMEN SUBJECTED TO FORCED PROSTITUTION YESTERDAY'S ANNOUNCEMENT WAS THE FINAL MAJOR ACT OF THE CABINET OF 73YEAROLD PRIME MINISTER KIICHI MIYAZAWA HIS GOVERNMENT IS LIKELY JAPAN'S LAST TO BE RUN BY THE GENERATION OF POLITICIANS WHO GREW UP DURING THE WAR YEARS MR MIYAZAWA'S LIBERAL DEMOCRATIC PARTY WAS DEFEATED IN ELECTIONS LAST MONTH AND IS LOSING CONTROL OF THE GOVERNMENT FOR THE FIRST TIME IN NEARLY FOUR DECADES AS SOON AS TODAY A NEW GOVERNMENT WILL BE FORMED PROBABLY LED BY MORIHIRO HOSOKAWA 55 AND A COALITION OF POLITICAL PARTIES THAT SAID IT WILL BE MORE FORTHCOMING ABOUT JAPAN'S ROLE IN THE WAR WE SHOULD TELL OUR CHILDREN WHAT OUR FOREFATHERS HAVE DONE TSUTOMU HATA 57 A COALITION LEADER SAID EARLIER THIS WEEK WE HAVE TO SAY CLEARLY WHAT WE FEEL TO ASIAN PEOPLE SOCIALIST TAKAKO DOI 64 ANOTHER COALITION MEMBER IS EXPECTED TO BECOME SPEAKER OF THE LOWER HOUSE OF PARLIAMENT SHE WANTS JAPAN TO EXTEND MORE COMPENSATION TO WAR VICTIMS JAPAN HAS LONG BEEN RELUCTANT TO OPENLY EXPLORE ITS WARTIME BEHAVIOR FROM CHEMICAL EXPERIMENTS ON PRISONERS TO MASSACRES IN CHINA TO FORCED PROSTITUTION FOR DECADES AFTER THE WAR THE JAPANESE GOVERNMENT AVOIDED DISCUSSING THE ISSUE OF MILITARYRUN BROTHELS A GROUP OF SOUTH KOREAN WOMEN FORCED THE ISSUE INTO THE OPEN IN DECEMBER 1991 BY DECLARING PUBLICLY THAT THEY HAD BEEN TAKEN BY THE JAPANESE MILITARY TO BATTLE AREAS DETAINED FOR MONTHS AT A TIME AND FORCED TO HAVE SEX WITH SEVERAL JAPANESE SOLDIERS A NIGHT THE WOMEN FILED A LAWSUIT DEMANDING COMPENSATION WOMEN FROM THE PHILIPPINES MALAYSIA AND INDONESIA HAVE COME FORWARD WITH SIMILAR TALES IT WASN'T UNTIL JULY 1992 THAT JAPAN ADMITTED ITS MILITARY RAN THE BROTHELS EVEN THEN THE JAPANESE REFUSED TO SAY THAT THE WOMEN WERE FORCED IMPLYING THAT THE WOMEN HAD JOINED VOLUNTARILY EVEN YESTERDAY'S REPORT QUALIFIED ITS FINDINGS STATING THAT IN MANY CASES WOMEN WERE RECRUITED AGAINST THEIR OWN WILL THE JAPANESE GOVERNMENT DIDN'T ADDRESS WHAT SORT OF COMPENSATION IF ANY IT WOULD OFFER THE VICTIMS WE APPRECIATE THE FACT THAT IN ITS LATEST REPORT THE JAPANESE GOVERNMENT NOW ACKNOWLEDGES THAT COERCION WAS INVOLVED IN THE ENTIRE PROCESS THE SOUTH KOREAN GOVERNMENT SAID IN A STATEMENT BUT THE SOUTH KOREANS ADDED THERE WERE QUESTIONS WHICH HAVE NOT BEEN CLARIFIED A SOUTH KOREAN GROUP REPRESENTING THE WOMEN BLASTED THE REPORT AS TOO MEEK STEVE GLAIN IN SEOUL SOUTH KOREA CONTRIBUTED TO THIS ARTICLE 9308050096 930805 PHYSICIANS HEALTH SERVICES INC TRUMBULL CONN PHYSICIANS HEALTH SERVICES INC SAID IT SIGNED A LETTER OF INTENT WITH ST FRANCIS/MOUNT SINAI PHYSICIAN HOSPITAL ORGANIZATION TO PROVIDE HEALTHCARE SERVICES TO HARTFORD COUNTY THE MANAGEDCARE COMPANY SAID THE FIVEYEAR AGREEMENT WILL ADD MORE THAN 500 PHYSICIANS TO ITS NETWORK GIVING IT MORE THAN 4000 PHYSICIANS IN CONNECTICUT AND NEW YORK 9308050095 930805 LETTERS TO THE EDITOR WHAT LITIGATION DOES TO MEDICAL CARE I AGREE WITH ROXANNE BARTON CONLIN PRESIDENT OF THE ASSOCIATION OF TRIAL LAWYERS OF AMERICA LETTERS JUNE 29 THAT IT IS TRULY TIME TO SET ASIDE SELFSERVING MYTHS IN THE HEALTH CARE FIELD ONE MYTH MS CONLIN IS PROMOTING VIA COMPELLING DOCUMENTATION IS THAT THE IMPACT OF MALPRACTICE LITIGATION ON HEALTH CARE COSTS IS SO SLIGHT THAT IT DEFIES DETECTION AT OUR RECENT HOSPITAL GENERAL STAFF MEETING SIX HOSPITALS AND MORE THAN 1000 DOCTORS IT WAS DETERMINED THAT THE MALPRACTICE LITIGATION INSURANCE COST HOSPITAL ONLY NOT PHYSICIAN HAD JUST RISEN TO AN AVERAGE OF 500 PER ADMISSION THIS FIGURE DOES NOT DEFY DETECTION OR IF IT DOES IT IS ONLY BECAUSE IT IS ADDED TO THE DAILY ROOM RATE A SECOND MYTH OF MS CONLIN'S CHANGES IN NEGLIGENCE LAW WOULD BE UNLIKELY TO CHANGE DAYTODAY MEDICAL PRACTICE SIGNIFICANTLY SINCE THE DEFENSIVE MEDICINE' PRACTICES DECRIED BY CRITICS ACTUALLY HELP TO MAKE DIAGNOSIS MORE PRECISE IT IMPROVES THE QUALITY OF CARE AND THEREFORE DECREASES COSTS OVERALL SO IT'S SIMPLE WE DECREASE COSTS BY SPENDING MORE I DIAGNOSE A COMMON HEADACHE MORE ACCURATELY AND IMPROVE THE QUALITY OF CARE BY SPENDING A FEW THOUSAND DOLLARS MORE ON MRIS CT SCANS ULTRASOUND ETCAND THIS DECREASES OVERALL COSTS THIS APPARENTLY REPRESENTS TRIAL LAWYER REASONING THE STATEMENT THAT THE COST OF MEDICAL NEGLIGENCE INSURANCE IS LESS THAN 1 OF THE NATIONAL HEALTH CARE BILL IS MEANINGLESS TO THOSE OF US PAYING FROM 38000 TO 76000 A YEAR FOR THAT INSURANCE SUCH AMOUNTS FREQUENTLY REPRESENT 25 TO 35 OF OUR INCOME MS CONLIN WRITES MALPRACTICE LITIGATION ON HEALTH CARE COSTS IS SO SLIGHT THAT IT DEFIES DETECTION TRUTH A GOVERNMENT STUDY DURING THE CARTER ADMINISTRATION FOUND THAT 33 OF HEALTH CARE COSTS WERE DIRECTLY ATTRIBUTABLE TO LITIGATION AND ITS FEEDOFFS SUCH AS DEFENSIVE MEDICINE THE CONGRESSIONAL BUDGET OFFICE IN 1992 FOUND THAT THE COST OF MEDICAL NEGLIGENCE INSURANCE IS LESS THAN 1 OF THE NATIONAL HEALTH CARE BILL NOTE CONGRESS IS MOSTLY LAWYERS DEFENSIVE MEDICAL PRACTICES HELP TO MAKE DIAGNOSIS MORE PRECISE IT IMPROVES THE QUALITY OF CARE AND THEREFORE DECREASES COSTS OVERALL TRUTH DEFENSIVE MEDICINE CONTRIBUTES A SIGNIFICANT PART OF THE ABOVE FIGURE OF ONETHIRD OF THE TOTAL OF HEALTH COSTS THE GROSS NATIONAL PRODUCT OF THE US IS 57 TRILLION 12 OF THE GNP IS SPENT ON MEDICAL CARE IE 684 BILLION THUS 230 BILLION IS SPENT ON LITIGATION AND RELATED ASIDES MS CONLIN QUOTES A STUDY THAT SAYS UNJUSTIFIED PAYMENTS ARE PROBABLY UNCOMMON WELL 10 MILLION OR EVEN 20 MILLION JUDGMENTS OR SETTLEMENTS ARE NOT UNCOMMON REGARDLESS OF FAULT WHY SHOULD ANYBODY GET MORE THAN 2 MILLION FINALLY SHE SAYS HEALTH CARE IS TOO CRITICAL TO BE MIRED IN FOLKLORE ALMOST GOT IT RIGHT BETTER STATED HEALTH CARE IS TOO CRITICAL TO BE MIRED IN THE JUDICIALLEGISLATIVE SYSTEM 9308050094 930805 PEPPERAND SALT DUGOUT CANOE TRAVELLOG 9308050093 930805 LETTERS TO THE EDITOR FEINGOLD EXPLAINS POSITION ON BUDGET VOTE I AM WRITING TO TAKE ISSUE WITH YOUR AUG 3 EDITORIAL THE NITTY GRITTY YOU MISSTATED SEVERAL CRITICAL FACTS NOT THE LEAST OF WHICH IS MY POSITION ON THE PRESIDENT'S DEFICIT REDUCTION PROGRAM THE FACT IS THAT I HAVE MADE IT VERY CLEAR TO THE PRESIDENT FROM THE BEGINNING OF THIS DEBATE THAT I WOULD VOTE FOR HIS PROPOSAL IF IT STAYED CLOSE TO THE ORIGINAL 500 BILLION IN NET DEFICIT REDUCTION THE CONFERENCE REPORT WILL PUT THE DEFICIT REDUCTION TOTAL AT AROUND 496 BILLION I WILL VOTE FOR IT UNLESS THERE IS SOMETHING UNFORESEEN IN THE LANGUAGE OF THE CONFERENCE REPORT I ALSO HAVE BEEN FIGHTING HARD TO PREVENT THE DAMAGE THAT WILL BE DONE TO THE US DAIRY INDUSTRY IF GENETICALLY ENGINEERED BOVINE GROWTH HORMONE BECOMES WIDELY USED THE USE OF THIS PRODUCT WILL DRIVE THOUSANDS OF FAMILY DAIRY FARMERS OFF THEIR FARMS REDUCE DAIRY CONSUMPTION AND JEOPARDIZE OUR ABILITY TO COMPETE IN THE INTERNATIONAL DAIRY MARKETPLACE I HOPE A MORATORIUM ON THIS PRODUCT IS INCLUDED IN THE FINAL RECONCILIATION PACKAGE FINALLY YOU ALSO ALLEGED THAT I HAD LOST A VOTE ON THE FLOOR OF THE SENATE ON THE MORATORIUM ISSUE THIS IS ALSO FALSE THE VOTE IN QUESTION REMOVED A PROVISION FROM THE AGRICULTURE PORTION OF THE RECONCILIATION BILL THAT WOULD HAVE HAD NO IMPACT ON THE DEFICIT THUS VIOLATING THE BYRD RULE THE PROVISION WAS REMOVED ON A PROCEDURAL MOTION AND HAD NO IMPACT ON MY PROPOSAL 9308050092 930805 INFORMATION AGE ADVANCES IN NETWORKING AND SOFTWARE PUSH FIRMS CLOSER TO PAPERLESS OFFICE BY WILLIAM M BULKELEY HARTFORD CONN LAST YEAR AETNA LIFE & CASUALTY CO DONATED 10000 THREERING BINDERS TO SCHOOLS AROUND THE COUNTRY IN A SMALL GESTURE OF CHARITY AETNA DIDN'T OVERORDER OR BUY THE BINDERS WITH LARGESSE IN MIND IT MADE THEM OBSOLETE IN ONE OF THE LARGESTSCALE SUCCESSES TO DATE IN THE PUSH TOWARD THE PAPERLESS OFFICE THE PAPERFREE WORKPLACE HAS BEEN ONE OF THE GREAT UNFULFILLED PROMISES OF THE INFORMATION AGE IT WILL PROBABLY NEVER COME BUT INTRACOMPANY COMPUTER NETWORKING AND NEW SOFTWARE ARE FINALLY BEGINNING TO STAUNCH THE DOCUMENT DELUGE THAT SWAMPS MANY OFFICES AETNA SAYS IT IS SAVING AT LEAST 6 MILLION A YEAR BY CREATING INSURANCE MANUALS AND OTHER TEXTS THAT EXIST ONLY IN COMPUTERS FOR EXAMPLE AETNA SAVES 2000 A MONTH IN STORAGE COSTS FOR EXTRA MANUALS AND BINDERS IN THE LAST NINE MONTHS IT ALSO AVOIDED DISTRIBUTING 100 MILLION PAGES OF ADDENDA AND UPDATES AT A COST OF 45 CENTS A SHEET COMPUTER SYSTEMS THAT SAVE PAPER ARE JUST BEGINNING TO GROW SAYS CARL FRAPPAOLO EXECUTIVE VICE PRESIDENT OF DELPHI CONSULTING GROUP IN BOSTON WE'RE JUST BEGINNING TO SEE MARKET AWARENESS OF WHAT THE BENEFITS OF THIS ARE WHILE AETNA AND OTHERS HAVE FOUND IT HARD TO GET PEOPLE TO ACCEPT THAT INFORMATION DOESN'T EXIST ANYWHERE ON PAPER THE SAVINGS CAN BE SIGNIFICANT NORDSTROM INC THE SEATTLE DEPARTMENT STORE CHAIN IS SAVING 1 MILLION A YEAR IN PAPER COSTS BY SCRAPPING PRINTED INTERNAL REPORTS ON SALES IN FAVOR OF REPORTS ACCESSIBLE ONLY ON COMPUTER SAYS KURT DAHL PRODUCTION SERVICES MANAGER SOME COMPANIES SCAN AND STORE ALL CUSTOMER ORDERS AND CORRESPONDENCE ELECTRONICALLY BUT THE BIGGEST SUCCESSFUL CONVERSIONS FROM PAPER ARE INTERNAL SUCH AS REPLACING MEMOS WITH EMAIL WHILE RETAINING PAPER FOR LETTERS AND OTHER ESSENTIAL OUTSIDE COMMUNICATION PAPER IN A SERVICE BUSINESS IS LIKE CHOLESTEROL IN THE BLOOD STREAM SAYS JOHN LOEWENBERG WHO HEADS INFORMATION SERVICES FOR AETNA GOOD PAPER IS WHAT YOU NEED TO COMMUNICATE WITH OTHERS CLAIMS CHECKS AND PREMIUM NOTICES BAD PAPER IS THE INTERNAL STUFF THAT CLOGS UP THE ARTERIES LOOKING SOMETHING UP ELECTRONICALLY IS MUCH MORE EFFICIENT THAN FLIPPING THROUGH A MANUAL ELECTRONIC DOCUMENTS ARE AVAILABLE TO EVERYONE AS SOON AS THEY'RE CREATED AND APPROVED UNLIKE PAPER WHICH HAS TO BE WRITTEN TYPESET PROOFREAD RETYPESET AND MAILED BUT UNTIL RECENTLY IT HAS BEEN DIFFICULT TO SHARE DOCUMENTS IN COMPANIES WHERE WORKERS HAVE OLD PCS RUNNING SOFTWARE LIKE WORDPERFECT WHILE HIGHERUPS USE NEW 486 PCS WITH PROGRAMS LIKE WORD FOR WINDOWS AND THE CAPABILITY TO PRODUCE FANCY MANUALS WITH HEADLINES AND CHARTS NEW SOFTWARE ON THE MARKET MAKES IT POSSIBLE TO VIEW DOCUMENTS EVEN WHEN THEY'RE CREATED ON COMPLETELY DIFFERENT SYSTEMS THIS MAKES IT SIMPLE FOR COMPANIES WITH A VARIETY OF COMPUTER SYSTEMS OR OUTSIDE SUPPLIERS TO SEND DOCUMENTS TO EACH OTHER THE PRODUCTS INCLUDE ADOBE SYSTEMS INC'S HIGHLY PUBLICIZED ACROBAT WHICH LETS PEOPLE VIEW ELECTRONIC DOCUMENTS THAT INCLUDE HEADLINES AND GRAPHICS EVEN THOUGH THE DOCUMENTS WERE CREATED WITH DIFFERENT SOFTWARE ON DIFFERENT COMPUTERS MEANWHILE ADOBE'S POSTSCRIPT PRINTER LANGUAGE WHICH SPAWNED DESKTOP PUBLISHING INCREASED OFFICE PAPER USE COMPETITORS INCLUDE COMMON GROUND FROM NO HANDS SOFTWARE INC AND REPLICA FROM FARALLON COMPUTING INC STARSHIP ENTERPRISES STEWART OHIO SAYS REPLICA LETS IT SEND WEEKLY MUSICAL COMPOSITIONS THAT IT SELLS TO COLLEGE MARCHING BANDS ELECTRONICALLY INSTEAD OF VIA FACSIMILE MACHINES STILL CONSULTANTS SAY THAT IT REMAINS EASIER FOR USERS TO SHARE SEARCH EDIT AND REUSE ELECTRONIC MANUALS WHEN COMPUTER SYSTEMS AND SOFTWARE ARE STANDARDIZED FOR SUCH SYSTEMS THERE IS ELECTRONIC PUBLISHING SOFTWARE SUCH AS FOLIOVIEWS FROM MEAD DATA CORP'S FOLIO SUBSIDIARY WHICH AETNA USES AND ZYINDEX FROM ZYLABS INC RONNI MARSHAK EDITOR OF OFFICE COMPUTING REPORT SAYS THE BOSTON NEWSLETTER PUBLISHES ON PAPER AND ELECTRONICALLY VIA NOTES A LOTUS DEVELOPMENT CORP PROGRAM USED IN SOME COMPANIES ONCE THE NEWSLETTER IS PUBLISHED IN NOTES FORM SUBSCRIBERS CAN DIAL IN AND READ IT THEY OFTEN MAKE COMMENTS OR CRITICISMS AND THOSE MAY BE ADDED TO THE NEWSLETTER MOREOVER SUBSCRIBERS DON'T HAVE TO HAVE BINDERS OF BACK ISSUES YOU CAN SEARCH BY COMPANY OR SEARCH BY TOPIC SAYS MS MARSHAK AETNA FOUND OUT MORE THAN IT WANTED TO KNOW WHEN IT STARTED CONVERTING PAPER MANUALS FOR ITS COMMERCIAL INSURANCE LINES TO ELECTRONIC PUBLICATIONS I THOUGHT WE HAD ABOUT 40 MANUALS WE HAD 435 RECALLS CHARLES H COON WHO HAS WORKED ON THE PROJECT SINCE IT BEGAN IN 1989 AETNA HAS MANUALS COVERING EACH STATE'S REGULATIONS FOR WORKERS' COMPENSATION PROPERTY INSURANCE AND A VARIETY OF OTHER INSURANCE LINES THEN THERE ARE AETNA'S MANUALS COVERING AETNA'S OWN UNDERWRITING RULES AND ATTITUDE TOWARD DIFFERENT RISKS THE COMPANY ALSO HAS INTERNAL MANUALS SUCH AS THE AETNA PHONE DIRECTORY EVERY TIME IDAHO FOR EXAMPLE CHANGES POLICYCANCELLATION RULES FOR BLASTING CONTRACTORS AETNA MUST TELL UNDERWRITERS AT 42 REGIONAL OFFICES ANY ONE OF WHOM MIGHT HAVE A CONSTRUCTION CLIENT BLOWING UP PART OF IDAHO AT FIRST MR COON FOUND THAT PAPER MAKES PEOPLE FEEL SECURE SOME PEOPLE SAID YOU'LL TAKE PAPER AWAY FROM MY COLD DEAD FINGERS' HE SAYS SO HE USED TRICKS SHOWING OFF ELECTRONIC MANUALS AT REGIONAL OFFICES HE OFFERED 20 TO ANYONE WHO COULD ANSWER A QUESTION FASTER WITH PAPER MANUALS HE ALSO SOLD ELECTRONIC MANUALS AS ENVIRONMENTALLY CORRECT AVOID PAPER AND SAVE A TREE AND ASKED EMPLOYEES TO PICK THE SCHOOLS THAT WOULD GET THE OLD BINDERS THERE WERE OTHER ADVANTAGES PAPER NOTICES CAN BE LOST OR FORGOTTEN YOU CAN ALWAYS GET A LAUGH AS A DINNER SPEAKER BY ASKING HOW MANY OF YOU HAVE AN UPTODATE MANUAL' SAYS WILLIAM C HAYHURST ASSISTANT VICE PRESIDENT THE ELECTRONIC PUBLICATIONS ARE IDENTICAL TO AND MORE EASILY EDITED THAN PAPER IF A BRANCH MANAGER GETS A RULES UPDATE HE OR SHE CAN HIGHLIGHT KEY POINTS AND CIRCULATE THEM ELECTRONICALLY MOST BRANCH OFFICES WITH AN AVERAGE OF 100 WORKERS EACH HAVE A CENTRAL COMPUTER CALLED A SERVER THAT EVERYONE DRAWS FROM UNDERWRITERS CAN ATTACH THE ELECTRONIC EQUIVALENT OF STICKY NOTES TO PARTS OF THE MANUALS SO LATER USERS CAN SEE THEIR THOUGHTS THE SERVER IS UPDATED FROM HEADQUARTERS AT NIGHT WHEN LINE CHARGES ARE LOWER ISSUING A CHANGE IN ONE MANUAL PAGE NO LONGER INVOLVES MULTIPLE DRAFTS OR THE ERRORS THAT COME FROM TYPESETTING PROOFREADING AND CORRECTING AND IT DOESN'T REQUIRE ADDRESSING AND STUFFING ENVELOPES FOR EVERY ONE OF THE 4200 FIELD EMPLOYEES AETNA ELIMINATED A SUBURBAN WAREHOUSE FACILITY FILLED WITH 13000 MANUALS WHERE 10 PEOPLE DID NOTHING BUT UPDATE MANUALS THAT WERE READY FOR NEW EMPLOYEES SAYS MR COON THERE HAVE BEEN ADDED COSTS AETNA HAD TO BUY LAPTOP COMPUTERS FOR ITS TRAINING CENTER SO THAT NEW WORKERS COULD DO HOMEWORK AND AETNA EMPLOYEES STILL HAVE LOTS OF PAPER ON THEIR DESKS ESPECIALLY COMPUTER MANUALS BUT MOST ARE WEANING THEMSELVES FROM INTERNAL PAPER OF COURSE AETNA UNDERWRITERS STILL NEED TO SEND INFORMATION TO INDEPENDENT AGENTS SELLING THE COMPANY'S INSURANCE YOU HAVE TO GO BACK TO PAPER IF THEY DON'T HAVE EMAIL SAYS MR HAYHURST BUT YOU CAN FAX IT FROM YOUR COMPUTER SO IT'S ELECTRONIC TO US AND PAPER ONLY TO HIM 9308050091 930805 LETTERS TO THE EDITOR DENTAL LAWS MEANT TO PROTECT PATIENTS IN HIS JULY 13 BUSINESS WORLD COLUMN ON THE ISSUE OF DENTAL HYGIENISTS PRACTICING ON THEIR OWN TIM W FERGUSON IS CORRECT IN STATING THAT THE LAWS IN ALL BUT TWO STATES REQUIRE HYGIENISTS TO PRACTICE UNDER THE SUPERVISION OF DENTISTS HOWEVER HE FAILS TO MENTION THAT THE REASON THESE LAWS ARE IN EFFECT IN 48 OF OUR 50 STATES IS TO PROTECT PATIENTS DENTISTS ARE THE ONLY PROFESSIONALS WHO HAVE THE EDUCATION AND TRAINING TO PROVIDE COMPREHENSIVE EXAMINATION DIAGNOSIS AND TREATMENT PLANNING ONLY DENTISTS ARE QUALIFIED TO HANDLE DENTAL EMERGENCIES AND IDENTIFY CONDITIONS IN PATIENTS THAT REQUIRE A DEPARTURE FROM ROUTINE PROCEDURES TO ILLUSTRATE THIS ORAL CANCER WHICH KILLS SOME 10000 PEOPLE A YEAR IN THIS COUNTRY FREQUENTLY IS DETECTED IN ROUTINE ORAL EXAMINATIONS DENTISTS NOT HYGIENISTS ARE TRAINED TO DETECT ORAL CANCER AND MANY OTHER DISEASES AND CONDITIONS THAT MAY BE EVIDENT IN THE MOUTH THE DENTAL HYGIENE OCCUPATION WAS CREATED BY THE DENTISTS TO ALLOW GREATER PRODUCTIVITY AND MORE EFFICIENT USE OF OFFICE TIME SPACE AND EQUIPMENT HYGIENISTS ALONG WITH DENTAL ASSISTANTS ARE MEMBERS OF THE DENTAL SERVICE DELIVERY TEAM LED BY DENTISTS THIS SYSTEM HOLDS DOWN COSTS TO CONSUMERS MAKES DENTAL SERVICES AVAILABLE TO MORE PEOPLE ENSURES THE QUALITY OF DENTAL SERVICES AND MAINTAINS DENTISTRY'S HIGH STANDARDS WHILE HYGIENISTS HAVE AN IMPORTANT ROLE IN THE DENTAL PROFESSION THEY ARE NOT DENTISTS THEY NEVER WERE MEANT TO SUBSTITUTE FOR THE COMPREHENSIVE DENTAL CARE PROVIDED TO PATIENTS BY DENTISTS IN FACT THIS MAY EXPLAIN WHY SO MANY HYGIENISTS CHOOSE TO TRAIN TO BECOME DENTISTS IF HYGIENISTS WERE ALLOWED TO PRACTICE ON THEIR OWN THEY WOULD BE DUPLICATING SERVICES OF DENTAL OFFICES ALSO THEY WOULD HAVE TO BEAR THE SAME OVERHEAD COSTS NOW ASSUMED BY DENTAL OFFICES THESE COSTS WOULD BE PASSED ON TO CONSUMERS AND THIS EXPENSE COULD DRIVE PEOPLE AWAY FROM SEEKING REGULAR DENTAL HEALTH CARE EVEN MORE SIGNIFICANT THE RISK TO THE PUBLIC'S ORAL HEALTH WOULD INCREASE BECAUSE THERE WOULD BE NO SUPERVISION OF HYGIENISTS BY DENTISTS 9308050090 930805 LAW TWO POLICEMEN GET 2 1/2YEAR JAIL TERMS ON US CHARGES IN RODNEY KING CASE BY BENJAMIN A HOLDEN AND FREDERICK ROSE STAFF REPORTERS OF THE WALL STREET JOURNAL LOS ANGELES TWO LOS ANGELES POLICE OFFICERS CONVICTED OF ASSAULTRELATED CHARGES IN THE CLOSELY WATCHED RODNEY KING BEATING CASE WERE EACH SENTENCED TO TWO AND A HALF YEARS IN JAIL PLUS TWO YEARS PROBATION A FAR SHORTER TERM THAN MANY LEGAL SCHOLARS HAD PREDICTED FEDERAL PROSECUTORS APPEARED STUNNED AS US DISTRICT JUDGE JOHN G DAVIES PRONOUNCED THE SENTENCES ON POLICE SGT STACEY C KOON AND OFFICER LAURENCE M POWELL FOLLOWING LENGTHY DEBATE ABOUT THE APPLICATION OF CONTROVERSIAL FEDERAL SENTENCING GUIDELINES LEGAL EXPERTS HAD BEEN PREDICTING SENTENCES OF ABOUT FOUR TO SIX YEARS JUDGE DAVIES'S DECISION MARKEDLY LOWER THAN CALLED FOR BY THE GUIDELINES COULD PROMPT A HIGHPROFILE FEDERAL APPEAL THAT MIGHT SET A POWERFUL PRECEDENT FOR SENTENCING AT LEAST IN THE NINE WESTERN STATES THAT MAKE UP THE NINTH JUDICIAL CIRCUIT LEGAL EXPERTS SAID THE JUDGE RULING IN FEDERAL COURT HERE TURNED ASIDE PROSECUTORS' CALLS FOR PRISON TERMS OF AS MUCH AS 10 YEARS FOR SGT KOON AND NINE YEARS FOR OFFICER POWELL JUDGE DAVIES CITED SEVERAL MITIGATING FACTORS IN APPLYING SENTENCING GUIDELINES MR KING'S BEHAVIOR AT HIS ARREST ON THE NIGHT OF MARCH 3 1991 THE EXPECTED POLICE DEPARTMENT HEARING THAT IS CERTAIN TO RESULT IN DISMISSAL OF THE TWO OFFICERS AND PROSPECTIVE JAIL ABUSE BY FELLOW PRISONERS JUDGE DAVIES ALSO REJECTED PROSECUTORS' CALLS FOR FINES AND RESTITUTION TO MR KING HE ORDERED THE OFFICERS TO SURRENDER TO PRISON AUTHORITIES SEPT 27 CHOOSING A MIDDLE PATH BETWEEN IMMEDIATE INCARCERATION AND CALLS FOR THE TWO MEN TO BE AT LIBERTY UNTIL COMPLETION OF EXPECTED APPEALS OF THEIR CONVICTION WITH TIME OFF FOR GOOD BEHAVIOR THE OFFICERS COULD SERVE AS LITTLE AS TWO YEARS AND 45 DAYS THE VIDEOTAPED POLICE BEATING OF MR KING FOLLOWING HIS ARREST AND THE SUBSEQUENT FINDING OF INNOCENCE ON STATE CHARGES AGAINST OFFICERS KOON POWELL AND TWO OTHER LOS ANGELES POLICEMEN SPARKED THE MOST DAMAGING US URBAN RIOTS OF THIS CENTURY WITH 53 DEATHS AND DESTRUCTION OF NEARLY 1 BILLION IN PROPERTY IN ADVANCE OF THE SENTENCING LOS ANGELES POLICE WERE PUT ON TACTICAL ALERT YESTERDAY MORNING THE CITY APPEARED CALM IN THE HOURS IMMEDIATELY FOLLOWING THE JUDGE'S RULING WHICH HAD BEEN SEEN AS ONE OF A NUMBER OF PRESSURE POINTS IN THE RACIALLY CHARGED CASE OF MR KING'S BEATING AND THE RIOTS THAT GREW OUT OF IT BLACKS AT A PREPLANNED PRAYER VIGIL WERE SHOCKED BY THE SENTENCES SAID THE REV CECIL CHIP MURRAY MINISTER OF THE POLITICALLY INFLUENTIAL FIRST AME CHURCH ON THE EDGE OF SOUTH CENTRAL LOS ANGELES HE SAID THE 250 PEOPLE WHO ATTENDED THE VIGIL AT FIRST WERE AGHAST SOON THERE WERE TEARS AND THERE WAS SILENCE HE SAID ADDING THAT THIS IS ABOUT SYMBOLS AND THIS SENTENCE PRESENTS A RATHER UNHAPPY SYMBOL LEGAL EXPERTS SAW A DIFFERENT SYMBOLISM THE SENTENCE REFLECTS WIDESPREAD JUDICIAL DISENCHANTMENT WITH THE SENTENCING GUIDELINES SAID FORMER FEDERAL JUDGE LAYN R PHILLIPS WHO SAID HE EXPECTS THE SENTENCES TO BE APPEALED BY PROSECUTORS I LIKE THE GOVERNMENT'S CHANCES IN SUCH AN APPEAL HE ADDED MR PHILLIPS SAID THAT SINCE THE 1987 ADVENT OF FEDERAL SENTENCING GUIDELINES THERE HAVE BEEN 27 APPEALS BY FEDERAL PROSECUTORS OF SENTENCING OF NONCOOPERATING DEFENDANTS WITHIN THE NINTH CIRCUIT IN 14 OF THOSE CASES SENTENCES WERE STIFFENED MR PHILLIPS SAID OFFICERS KOON AND POWELL WERE CONVICTED APRIL 17 A FEDERAL JURY IN LOS ANGELES FOUND THAT OFFICER POWELL WHO STRUCK MOST OF THE BLOWS ON MR KING WAS GUILTY OF VIOLATING MR KING'S CONSTITUTIONAL RIGHT TO BE FREE FROM AN ARREST MADE WITH UNREASONABLE FORCE AND THAT SGT KOON THE OFFICER IN CHARGE AT THE SCENE WAS GUILTY OF PERMITTING THE CIVILRIGHTS VIOLATIONS TO TAKE PLACE TWO OTHER POLICE OFFICERS THEODORE BRISENO AND TIMOTHY WIND WERE INNOCENT OF VIOLATING MR KING'S CIVIL RIGHTS ALL FOUR POLICE OFFICERS ARE WHITE MR KING IS BLACK DURING MORE THAN FOUR HOURS OF PROCEEDINGS JUDGE DAVIES DENIED MOTIONS BY THE OFFICERS' LAWYERS THAT THE POLICE ACTIONS BE VIEWED AS A MINOR ASSAULT WHICH WOULD HAVE REDUCED SENTENCES TO THE RANGE OF 10 TO 18 MONTHS THE JUDGE RULED INSTEAD THAT THE OFFICERS' ACTIONS CONSTITUTED AGGRAVATED ASSAULT WHICH CALLS FOR FAR LONGER PRISON TERMS APPROACHING 10 YEARS THEREAFTER HOWEVER JUDGE DAVIES HELD THAT SEVERAL FACTORS SUPPORTED DEVIATION FROM THE SENTENCING GUIDELINES AND SUBSTANTIALLY LESSENED THE TERMS 9308050089 930805 INDUSTRY FOCUS DIET PROGRAMS HOPE BROADER SERVICES FATTEN PROFITS NUTRI/SYSTEM JENNY CRAIG WEIGHT WATCHERS DISH UP PREVENTIVE HEALTH CARE BY LOURDES LEE VALERIANO STAFF REPORTER OF THE WALL STREET JOURNAL WHEN NUTRI/SYSTEM INC'S FINANCIAL TURMOIL IN APRIL CLOSED A QUARTER OF ITS NETWORK OF DIET OUTLETS JENNY CRAIG INC AND WEIGHT WATCHERS INTERNATIONAL HURRIED TO TRY TO SNAG THEIR RIVAL'S CUSTOMERS IN AN OPEN LETTER TO NUTRI/SYSTEM CLIENTS IN PRINT AND TELEVISION ADS JENNY CRAIG OF DEL MAR CALIF OFFERED THWARTED DIETERS A CHANCE TO TRANSFER TO ITS CENTERS WITH NO ADDITIONAL FEE PRINT ADS FROM WEIGHT WATCHERS A DIVISION OF PITTSBURGHBASED HJ HEINZ CO ISSUED AN INVITATION TO THOSE AFFECTED BY THE CLOSING OF NUTRI/SYSTEM CENTERS BUT NEITHER JENNY CRAIG NOR WEIGHT WATCHERS SAW A SIGNIFICANT RISE IN ENROLLMENTS THE COMPANIES SAY THE CLOSURES CAME AT THE END OF THE DIET SEASON WHEN REDUCING GETS POSTPONED UNTIL AUTUMN BUT RON ROTTER AN ANALYST WITH SEIDLER AMDEC SECURITIES IN LOS ANGELES SAYS THE NEGATIVE PUBLICITY SURROUNDING NUTRI/SYSTEM INHIBITED OTHER PEOPLE WHO MIGHT HAVE BEEN THINKING OF GOING ON A PROGRAM THE TWO RIVALS' APPARENT FAILURE TO PROFIT FROM THE NUTRI/SYSTEM UPHEAVAL ILLUSTRATES THE DIFFICULTIES EATING AWAY AT THIS ONCEBOOMING INDUSTRY WEIGHTLOSS CENTERS HAVE FACED CRITICISM THAT THEIR PROGRAMS DON'T KEEP THE POUNDS OFF AND CAN LEAD TO HEALTH RISKS BUT THE PROGRAMS WHICH CAN COST UP TO 1000 FOR A FOURMONTH PERIOD HAVE BEEN HURT MOST BY CONSUMERS' GROWING PREOCCUPATION WITH BELTTIGHTENING INSTEAD OF TRIMMER WAISTLINES THE 187 BILLION DIETCENTER BUSINESS IS STRIVING TO BROADEN ITS IMAGE BEYOND WEIGHT LOSS AND TAP CONCERNS FOR STAYING HEALTHY NOT JUST SLIM IF THEY JUST PROMOTE DIET AND WEIGHT LOSS THEY'LL LOSE SAYS BEN CHIN OF CONSULTANTS HUNTER MANAGEMENT PARTNERS INC IN NORWALK CONN THE BIG THREE IN THE INDUSTRY ARE REPOSITIONING THEMSELVES TO EMPHASIZE WEIGHT MANAGEMENT KEEPING THE WEIGHT OFFAND ITS IMPORTANCE IN PREVENTIVE HEALTH CARE JENNY CRAIG AND NUTRI/SYSTEM SAY THEY ARE REVAMPING THEIR PROGRAMS WHICH INCLUDE COUNSELING CLASSES MENU PLANS AND PACKAGED FOOD JENNY CRAIG SAYS IT WILL UNVEIL ITS NEW PROGRAM IN NOVEMBER AND BOTH SAY THE PROGRAMS WILL IMPLEMENTED BY JANUARY MICHAEL HEISLEY CHIEF EXECUTIVE OF HEICO ACQUISITIONS THE PRIVATE CHICAGO INVESTOR GROUP THAT IS TRYING TO ACQUIRE AND RESUSCITATE NUTRI/SYSTEM SAYS THE PROGRAM WILL INCLUDE MORE COUNSELING ON CURBING CHOLESTEROL AND BLOODPRESSURE LEVELS EXERCISE WILL MOVE UP ON THE IMPORTANCE CHAIN HE SAYS NUTRI/SYSTEM COUNSELORS WOULD DEVISE NOT ONLY DIET PLANS BUT ALSO EXERCISE PROGRAMS THAT THEY WOULD MONITOR MR HEISLEY EXPECTS TO INVEST 25 MILLION IN RESCUING THE BLUE BELL PA COMPANY WEIGHT WATCHERS MEANWHILE SAYS ITS PROGRAM ALREADY CONTAINS ALL THESE ELEMENTS AND PLANS NO CHANGES BUT IT IS JOINING THE PREVENTIVE HEALTHCARE BANDWAGON IT GAVE A 440000 GRANT TO THE AMERICAN DIETETIC ASSOCIATION A CHICAGOBASED ORGANIZATION OF FOOD AND NUTRITION PROFESSIONALS TO FUND ITS NUTRITION AND HEALTH CAMPAIGN FOR WOMEN THE CAMPAIGN SEEKS TO EDUCATE WOMEN ON THE CONNECTION BETWEEN NUTRITION AND HEART DISEASE BREAST CANCER AND OSTEOPOROSIS WEIGHT WATCHERS WILL SPEND ANOTHER 300000 TO PUBLICIZE THE CAMPAIGN IT'S UNCLEAR HOW FUNDAMENTAL THE INDUSTRY'S CHANGE WILL BE BUT THE NEW STRATEGY MAY HELP RETAIN CUSTOMERS WHO HAVE LOST THE WEIGHT THE CENTERS WILL HAVE A CONTINUED ONGOING RELATIONSHIP WITH THE CLIENT SAYS JOSEPH DIBARTOLOMEO A NUTRI/SYSTEM VICE PRESIDENT AND IT MIGHT HALT THE ENCROACHMENT OF PRODUCTS LIKE DOITYOURSELF DIET MEALS WHICH BILL THEMSELVES AS A CHEAPER AND MORE CONVENIENT OPTION JUST HELP YOURSELF CO OF SOUTHFIELD MICH WHICH ENTERED THE MARKET LAST YEAR IS GOING AFTER CUSTOMERS WHO MIGHT ENROLL AT DIET OUTLETS IN A TV AD RUN BY SUPERMARKETS GENERAL CORP'S PATHMARK STORES A WELLDRESSED WOMAN SAYS EARNESTLY YOU DON'T NEED A WEIGHTLOSS CENTER TO LOSE WEIGHT SAVE YOUR MONEY WEIGHTLOSS CENTERS PROLIFERATED THROUGH THE 1980S THE INDUSTRY HAD ANNUAL GROWTH RATES OF 10 TO 12 UNTIL 1989 WHEN IT PEAKED AT 228 BILLION SAYS MARKET DATA ENTERPRISES OF VALLEY STREAM NY WHICH TRACKS THE DIET BUSINESS IN 1992 REVENUE SHRANK 9 THIS YEAR MARKET DATA PROJECTS A 35 EXPANSION THAT HINGES ON AN IMPROVING ECONOMY THE PROBLEMS THAT STALLED THE INDUSTRY'S GROWTH ARE APPARENT IN THE FORTUNES OF NUTRI/SYSTEM FOUNDED IN 1971 IT GREW RAPIDLY IN THE 1980S AND GAINED A ZEALOUS FOLLOWING BUT COMPETITION WEAKENED PRICES AND THE STAGNANT ECONOMY MADE CONSUMERS RELUCTANT TO COMMIT HUNDREDS OF DOLLARS TO LOSING POUNDS NEGATIVE PRESS ALSO TOOK ITS TOLL LAWSUITS TRIED TO BLAME GALLBLADDER DISEASE ON NUTRI/SYSTEM'S DIET WHILE MOST OF THE SUITS NAMED ONLY NUTRI/SYSTEM AND THE COMPANY WON THE 18 SUITS THAT WENT TO TRIAL THE CHARGES CAST A SHADOW ON THE INDUSTRY IT WASN'T HELPED BY REPORTS THAT YOYO DIETERS WHO REPEATEDLY DIET AND REGAIN WEIGHT MIGHT HAVE MORE HEALTH RISKS THAN THOSE SLIGHTLY OVERWEIGHT IN APRIL BANK CREDITORS SEIZED THE HEAVILY INDEBTED COMPANY'S ASSETS AND FORCED THE CLOSURE OF ALL 283 COMPANYOWNED OUTLETS THE COMPANY FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION AND THIS WEEK PLANS TO PETITION THE BANKRUPTCY COURT IN PHILADELPHIA TO ALLOW THE SALE OF ASSETS IN A BANKRUPTCY AUCTION HEICO ACQUISITIONS WHICH IS RUNNING THE COMPANY HAS REACHED AN AGREEMENT WITH NUTRI/SYSTEM'S BANK LENDERS TO BUY THE COMPANY'S 48 MILLION BANK DEBT THE PRICE WASN'T DISCLOSED AND WILL BID THE PURCHASE AMOUNT IN THE AUCTION SAYS MR HEISLEY THE COMPANY HAS RESTORED THE SUPPLY OF PREPACKAGED FOOD TO ITS NETWORK OF FRANCHISEEOWNED OUTLETS AND IN RECENT WEEKS REOPENED 26 OF ITS OUTLETS NEVERTHELESS 112 OF 950 FRANCHISEE AND JOINT VENTURE OUTLETS HAVE CLOSED SINCE SPRING SAYS A JUNE SURVEY BY FRANCHISEE GROUP NSF CORP SALES ARE RUNNING AT A RATE OF 500 MILLION A YEAR DOWN FROM 798 MILLION LAST YEAR WEIGHT WATCHERS AND JENNY CRAIG REMAIN PROFITABLE JOHN MCMILLIN OF PRUDENTIAL SECURITIES RESEARCH SAYS WEIGHT WATCHERS' REVENUE WAS FLAT FOR THE YEAR ENDED APRIL 30 EXCLUDING SALES OF DIET MEALS WEIGHT WATCHERS CLIENTS AREN'T REQUIRED TO BUY EITHER ITS PERSONAL CUISINE LINE SOLD AT DIET CENTERS OR THE WEIGHT WATCHERS BRAND FOODS SOLD IN SUPERMARKETS HEINZ DOESN'T BREAK OUT WEIGHT WATCHERS SALES BUT MR MCMILLIN PLACES FEE REVENUE FOR WEIGHT WATCHERS AND FRANCHISEES AT 450 MILLION PRETAX PROFIT IS ABOUT 100 MILLION ENROLLMENT MEANWHILE WAS FLAT AT BEST HE ESTIMATES AS FOR JENNY CRAIG WHICH IS STILL OPENING CENTERS MR ROTTER OF SEIDLER AMDEC SEES A 7 REVENUE RISE FOR COMPANY AND FRANCHISEE OUTLETS TO 4938 MILLION IN THE YEAR ENDED JUNE 30 BUT HE RECKONS THAT PERCENTER REVENUE AND ENROLLMENT WERE DOWN 10 HE PUTS NET INCOME AT 367 MILLION DOWN 15 9308050087 930805 TECHNOLOGY MFS COMMUNICATIONS UNVEILS ATM SYSTEM NEW YORK MFS COMMUNICATIONS CO UNVEILED WHAT IT DESCRIBED AS THE FIRST VERSION OF THE MUCHBALLYHOOED ASYNCHRONOUS TRANSFER MODE OR ATM NETWORK TO SPAN THE COUNTRY THE ANNOUNCEMENT CAME A DAY AFTER MFS'S PROSPECTS BRIGHTENED FOLLOWING A REGULATORY DECISION THAT OPENS THE WAY FOR IT AND OTHER OPERATORS OF FIBER OPTIC NETWORKS TO EXPAND THEIR BUSINESSES BY COMPETING WITH ESTABLISHED LOCAL PHONE COMPANIES YESTERDAY'S ANNOUNCEMENT COUPLED WITH THE REGULATORY ACTION TUESDAY HELPED FUEL AN 83 RISE IN MFS'S SHARES IN YESTERDAY'S NATIONAL OVERTHECOUNTER TRADING WHERE THE SHARES CLOSED AT 4225 UP 325 MFS SAID THE ATM NETWORK IS ALREADY OPERATIONAL IN ITS 14CITY FIBER OPTIC NETWORK AND THAT IT IS PROVIDING THE UPGRADED SERVICE TO ITS CUSTOMERS ATM NETWORKS MOST OF WHICH ARE ONLY NOW BEING DEPLOYED AROUND THE COUNTRY WILL TRANSPORT GRAPHICS DATA AND VIDEO AT SPEEDS HUNDREDS OF TIMES FASTER THAN PREVIOUSLY AVAILABLE NETWORKS ACCORDING TO EXPERTS THEY CAN BE USED TO TRANSMIT COMPLEX MEDICAL IMAGES AND PERMIT MULTIMEDIA PRESENTATIONS ON TUESDAY THE FEDERAL COMMUNICATIONS COMMISSION AGREED TO ALLOW NEW PHONE COMPANY COMPETITORS TO SWITCH LONGDISTANCE CALLS FROM LOCAL PHONE COMPANY SWITCHING FACILITIES TO LONGDISTANCE CARRIERS' NETWORKS THE DECISION WILL PERMIT MFS AND OTHER SOCALLED ALTERNATIVE ACCESS PROVIDERS TO HANDLE CALLS FROM SMALL TO MEDIUMSIZED BUSINESSES AS WELL AS FROM RESIDENTIAL CUSTOMERS 9308050086 930805 AND MARRED BY TRUST FUND GIMMICK BY DANIEL J MITCHELL IN HIS NATIONALLY TELEVISED SPEECH TUESDAY NIGHT PRESIDENT CLINTON RESURRECTED HIS IDEA FOR A DEFICIT REDUCTION TRUST FUND INTRODUCED EARLIER THIS YEAR BUT QUICKLY PUT ASIDE AFTER ATTRACTING WIDESPREAD DERISION THE TRUST FUND ALLEGEDLY WILL GUARANTEE DEFICIT REDUCTION BY PLACING NEW TAX REVENUES IN A SPECIAL ACCOUNT WHERE THEY CANNOT BE SPENT IN REALITY HOWEVER THE FUND IS A GIMMICK DESIGNED TO GIVE SKITTISH DEMOCRATS SUCH AS ARIZONA SEN DENNIS DECONCINI WHO ANNOUNCED YESTERDAY THAT HE WOULD FINALLY SUPPORT THE PRESIDENT'S BUDGET AN EXCUSE TO VOTE FOR AN UNPOPULAR TAX BILL THE TRUST FUND CREATED BY AN EXECUTIVE ORDER THAT WAS SIGNED BY THE PRESIDENT YESTERDAY DOES NOT CHANGE PROJECTED LEVELS OF GOVERNMENT BORROWING NOR DOES IT ALTER ANY GOVERNMENT SPENDING PROGRAMS OR CHANGE PROJECTED LEVELS OF TAX RECEIPTS INDEED ALICE RIVLIN DEPUTY DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET OPENLY CONFESSED EARLIER IN THE YEAR I DON'T THINK IT AFFECTS ANYTHING IT'S A DISPLAY DEVICE ROBERT REISCHAUER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE ALSO ADMITTED THAT THE PROPOSAL WAS A SHAM THE ACTUAL PURPOSE OF THE TRUST FUND IS CLEAR THE PRESIDENT HAS BEEN DESPERATELY SEEKING AT LEAST ONE MORE VOTE IN THE SENATE TO OFFSET THE DEFECTION OF OKLAHOMA DEMOCRAT DAVID BOREN THE WHITE HOUSE FOCUSED ON MR DECONCINI ACCURATELY BELIEVING THAT THE SENATOR WOULD SWITCH HIS VOTE AND SUPPORT THE RECORD TAX HIKE AS LONG AS HE HAD A WAY TO JUSTIFY A PROTAX VOTE TO THE ANTITAX ANTICLINTON VOTERS OF ARIZONA THUS THE TRUST FUND PROPOSAL WAS PULLED OFF THE BACK BURNER ODDLY THE ADMINISTRATION'S OWN NUMBERS PROVIDE EVIDENCE THAT THE TRUST FUND IS A HOAX ACCORDING TO OMB FIGURES ADOPTION OF THE CLINTON BUDGET WILL RESULT IN A DEFICIT OF MORE THAN 300 BILLION BY 2001 AT LEAST 15 BILLION HIGHER THAN IT IS TODAY IT DOES NOT TAKE A ROCKET SCIENTIST TO FIGURE OUT THAT IF THE DEFICIT IN THE FUTURE IS HIGHER AFTER THE TAX INCREASE THAN IT IS TODAY IT MUST MEAN THAT EVERY SINGLE PENNY OF ADDITIONAL TAX REVENUE WILL GO TO NEW SPENDING WHEN CONFRONTED WHITE HOUSE OFFICIALS ADMIT THAT THESE NUMBERS ARE TRUE IN THE FINE TRADITION OF WASHINGTON BUDGET MATH HOWEVER THEY STILL ARGUE THAT THE TRUST FUND IS REAL SINCE IT WILL MEASURE HOW MUCH WORSE THE DEFICIT WOULD HAVE BEEN IF TAXES WERE NOT RAISED AT ALL THIS LOGIC MAY NOT MAKE SENSE TO PEOPLE OUTSIDE THE BELTWAY BUT IT IS PAR FOR THE COURSE IN A TOWN THAT DEFINES A SPENDING CUT AS SOMETHING THAT HAPPENS WHENEVER LAWMAKERS INCREASE SPENDING BY LESS THAN PREVIOUSLY PLANNED EVEN USING WASHINGTON'S TWISTED DEFINITIONS HOWEVER THE TRUST FUND IS A FRAUD THE TRUST FUND MAY MEASURE HOW MUCH OF A GIVEN YEAR'S TAX REVENUE IS DUE TO THIS YEAR'S TAX INCREASE BUT THAT IS NOT THE SAME AS MEASURING WHETHER THE DEFICIT IS SMALLER THAN IT WOULD OTHERWISE HAVE BEEN THE TRUST FUND FOR INSTANCE WILL NOT CALCULATE HOW MUCH NEW SPENDING IS TRIGGERED BY THE EXPECTATION OF ADDITIONAL REVENUES AND THIS OMISSION IS MORE THAN A TECHNICALITY A JOINT ECONOMIC COMMITTEE STUDY FOUND THAT EVERY 1 OF INCREASED TAXES BETWEEN 1947 AND 1990 WAS ASSOCIATED WITH 159 OF NEW SPENDING NOR WILL THE TRUST FUND MEASURE CHANGES IN THE TAX BASE THAT ARE ATTRIBUTABLE TO THIS YEAR'S TAX INCREASE IF AS ALMOST EVERY INDEPENDENT ECONOMIST AND FORECASTER PREDICTS THE TAX INCREASE DAMPENS SAVINGS AND INVESTMENT SLOWS ECONOMIC GROWTH AND DESTROYS JOBS THE GOVERNMENT WILL HAVE A SMALLER POOL OF INCOME AND WEALTH TO TAX MOREOVER IT IS WIDELY AGREED THAT SUCH DRAMATIC INCREASES IN TAX RATES WILL ENCOURAGE BEHAVIORAL RESPONSES THAT LOWER TAXABLE INCOME EVEN FURTHER THE ADMINISTRATION NATURALLY DOES NOT PLAN TO INCLUDE THESE OFFSETTING REVENUE LOSSES IN ITS TRUST FUND CALCULATIONS MR CLINTON'S TRUST FUND GAMBIT IS ESPECIALLY AMUSING GIVEN HIS HARSH ATTACKS ON THE TAXPAYER CHECKOFF ENDORSED BY PRESIDENT BUSH DURING LAST YEAR'S CAMPAIGN MR BUSH'S PROPOSAL WOULD HAVE ALLOWED TAXPAYERS TO DEDICATE UP TO 10 OF THEIR INCOMETAX LIABILITIES TO A PUBLIC DEBT REDUCTION TRUST FUND AT THE SAME TIME IT WOULD HAVE MANDATED ACROSSTHEBOARD CUTS IN GOVERNMENT PROGRAMS EQUAL TO THE TOTAL AMOUNT OF MONEY TAXPAYERS DEDICATED TO THE FUND MR CLINTON CALLED THE PROPOSAL A GIMMICK BUT THE CBO ESTIMATED THAT A TAXPAYER CHECKOFF WOULD INDEED RESULT IN SAVINGS THE ACTUAL AMOUNT OF COURSE WOULD VARY DEPENDING ON THE LEVEL OF TAXPAYER PARTICIPATION BUT CBO ESTIMATED THAT THE PROPOSAL COULD LEAD TO A BUDGET SURPLUS IN AS LITTLE AS SEVEN YEARS IF MR CLINTON WERE REALLY INTERESTED IN DEFICIT REDUCTION HE WOULD TRASH HIS PHONY TRUST FUND AND ENDORSE THE TAXPAYER CHECKOFF UNFORTUNATELY HIS TRACK RECORD DOES NOT GIVE MUCH REASON FOR HOPE ONE OF HIS FIRST ACTS AS PRESIDENT WAS TO SUSPEND THE GRAMMRUDMAN DEFICIT REDUCTION REQUIREMENTS THUS THROWING OUT A CHANCE TO GET MORE THAN 60 BILLION OF GUARANTEED SPENDING CUTS OVER THE NEXT TWO YEARS WITH A WHOPPING TAX INCREASE IN THE OFFING AN INCREASE IN NO WAY JUSTIFIED BY MR CLINTON'S TRUST FUND PLOY THE EVIDENCE IS MOUNTING THAT THE CLINTON YEARS WILL BE A DARK AGE FOR THE AMERICAN TAXPAYER MR MITCHELL IS A FELLOW AT THE HERITAGE FOUNDATION IN WASHINGTON SEE RELATED ARTICLE TAX BILL RETROACTIVE UNCONSTITUTIONAL WSJ AUG 5 1993 9308050085 930805 BUSINESS BRIEFS FIRST INTERSTATE BANK OF CALIFORNIA SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE FIRST STATE BANK OF THE OAKS THOUSAND OAKS CALIF FOR 23 MILLION BY YEAR'S END AIR & WATER TECHNOLOGIES CORP AN ENVIRONMENTAL SERVICES CONCERN SAID A UNIT RECEIVED A 39 MILLION CONTRACT TO CLOSE A LANDFILL IN HERKIMER COUNTY NY PARTECH HOLDINGS CORP SIGNED A LETTER OF INTENT TO ACQUIRE RADIO STATION WSOSFM ST AUGUSTINE FLA FROM WSOS INC FOR 22 MILLION SCHLUMBERGER LTD ACQUIRED TLA TECHNOLOGY INC A COLUMBUS OHIO SUPPLIER OF AUTOMATED SYSTEMS USED IN SEMICONDUCTOR MANUFACTURING TERMS WEREN'T DISCLOSED MYERS INDUSTRIES INC ACQUIRED CERTAIN ASSETS AND OPERATIONS OF JA PETERSON CO A FENTON MO WHOLESALER OF TOOLS EQUIPMENT AND SUPPLIES TO THE TIRE INDUSTRY TERMS WEREN'T DISCLOSED WESTINGHOUSE ELECTRIC CORP AND ROLLSROYCE PLC'S PARSONS LTD UNIT WON A 39 MILLION CONTRACT TO MODERNIZE TWO STEAM TURBINE GENERATORS FOR THE TENNESSEE VALLEY AUTHORITY GROW GROUP INC COMPLETED ITS 163 MILLION PURCHASE OF ZYNOLYTE PRODUCTS CO AN AEROSOL AND SPECIALTY PAINT CONCERN CPC INTERNATIONAL INC SIGNED AN AGREEMENT TO BUY AN 85 STAKE IN PFANNIWERKE OTTO ECKART KG A GERMAN MAKER OF POTATO PRODUCTS IN THE NEXT TWO MONTHS TERMS WEREN'T DISCLOSED 9308050084 930805 WHAT'S NEWS WORLDWIDE TWO OFFICERS RECEIVED 2 1/2YEAR JAIL TERMS IN THE KING BEATING CASE THE TWO WHITE LOS ANGELES POLICE OFFICERS CONVICTED OF ASSAULTRELATED CHARGES IN THE 1991 RODNEY KING BEATING WERE EACH SENTENCED TO 2 1/2 YEARS IN PRISON BY A JUDGE WHO SAID MANY OF THE WORST BLOWS THEY INFLICTED WERE LEGAL FEDERAL PROSECUTORS APPEARED STUNNED AS THE JUDGE PRONOUNCED THE SENTENCES ON SGT STACEY KOON AND OFFICER LAURENCE POWELL TURNING ASIDE PROSECUTORS' CALLS FOR JAIL TERMS OF UP TO 10 YEARS FOR KOON AND NINE YEARS FOR POWELL THE JUDGE CITED MITIGATING FACTORS INCLUDING THE BEHAVIOR OF BLACK MOTORIST KING WHEN HE WAS ARRESTED THE CITY'S POLICE FORCE ANTICIPATING A VERDICT WENT ON A TACTICAL ALERT EARLY IN THE DAY BUT STREETS APPEARED CALM IN THE HOURS AFTER THE SENTENCING BOSNIAN SERB FORCES DEFIED THE THREAT OF NATO AIR ATTACKS AND CLOSED IN ON A STRATEGIC MOUNTAIN CONTROLLING THE LAST ARMSSMUGGLING ROUTE INTO SARAJEVO THE SERB COMMANDER DECLARED HIS TROOPS HAD TAKEN CONTROL OF MOUNT IGMAN MUSLIMLED GOVERNMENT FORCES CONCEDED THEIR POSITION WAS PRECARIOUS ON THE PEAK THE SENATE APPROVED A 58 BILLION DISASTERRELIEF BILL FOR MIDWESTERN FLOOD VICTIMS THE MEASURE INCLUDED A 1 BILLION INCREASE IN CROPLOSS AID FOR FARMERS APPROVED EARLIER IN THE DAY AFTER THE WHITE HOUSE THREW ITS SUPPORT BEHIND THE AID BOOST THE SENATE BILL MUST BE RECONCILED WITH A 3 BILLION VERSION PASSED BY THE HOUSE LAST WEEK CHRISTOPHER MADE AN UNSCHEDULED TRIP TO THE BEKAA VALLEY FOR A HEAVILY GUARDED MEETING WITH LEBANESE GOVERNMENT LEADERS IN HOPES OF REINVIGORATING MIDDLE EAST PEACE TALKS AFTER THE MEETING IN ZAHLE THE SECRETARY OF STATE SAID HE BELIEVED THE PEACE PROCESS HAD BEEN SALVAGED AND ARABISRAELI TALKS WOULD RESUME FBI AGENTS IN WASHINGTON HAVE ARRESTED A STATE DEPARTMENT CABLES CLERK ON ESPIONAGE CHARGES ACCUSING HER OF GIVING SECRET DIPLOMATIC PAPERS TO A WEST AFRICAN JOURNALIST WHO ALLEGEDLY TRANSMITTED THE CABLES AND DOCUMENTS TO LIBERIAN REBELS THE JOURNALIST ALSO WAS ARRESTED IF CONVICTED THE TWO COULD RECEIVE UP TO 10 YEARS IN PRISON JAPAN CONCEDED FOR THE FIRST TIME THAT ITS WORLD WAR II ARMY FORCED TENS OF THOUSANDS OF ASIAN WOMEN TO SERVE AS PROSTITUTES FOR ITS SOLDIERS BUT OFFICIALS REFUSED TO SAY WHETHER JAPAN WOULD PAY COMPENSATION THE CONFESSION WAS THE LAST MAJOR ACT BY THE MIYAZAWA CABINET THE GOVERNMENT RESIGNED EARLY TODAY SHOOTING ERUPTED BETWEEN SOUTH AFRICAN POLICE AND GUNMEN IN A FUNERAL PROCESSION IN KATLEHONG A TOWNSHIP EAST OF JOHANNESBURG POLICE SAID THEY CAME UNDER FIRE FROM THE CROWD AND SHOT BACK KILLING THREE PEOPLE AND WOUNDING THREE OTHERS OVER 7000 PEOPLE HAD GATHERED TO MOURN FIVE VICTIMS OF FACTIONAL FIGHTING YELTSIN ACKNOWLEDGED THAT LAST MONTH'S INVALIDATION OF PRE1993 RUBLES WAS POORLY THOUGHT OUT BUT THE RUSSIAN PRESIDENT DIDN'T DENY THAT HE APPROVED THE ACTION WHICH SPARKED A NATIONWIDE PANIC UNTIL HE RAISED THE CASH LIMIT AND EXTENDED THE DEADLINE FOR RUBLE EXCHANGES SEN LEAHY SAID A 18 BILLION AID PACKAGE FOR RUSSIA AND THE OTHER FORMER SOVIET REPUBLICS IS IN TROUBLE THE VERMONT DEMOCRAT CHARGED THAT THE CLINTON ADMINISTRATION HASN'T DONE ENOUGH TO PROMOTE THE RUSSIAN AID PACKAGE IN CONGRESS TWO AMERICANS WERE SLIGHTLY INJURED WHEN THEIR TRUCK HIT A LAND MINE IN A SUBURB OF SOMALIA'S CAPITAL MOGADISHU THE INCIDENT OCCURRED SHORTLY AFTER SOMALI GUNMEN RENEWED THEIR ATTACKS ON UN FORCES THE AMERICANS A US SOLDIER AND AN ENGINEER WORKING FOR HOUSTONBASED BROWN & ROOT DIDN'T REQUIRE HOSPITALIZATION ITALY'S PARLIAMENT INTRODUCED A NEW VOTING SYSTEM PAVING THE WAY FOR NATIONAL ELECTIONS TO BE SCHEDULED THOUGH THE PUBLIC HAS BEEN PRESSING FOR QUICK ELECTIONS WITH ONE IN SIX MEMBERS OF THE CURRENT PARLIAMENT IMPLICATED IN A CORRUPTION SCANDAL PRIME MINISTER CIAMPI HAS INDICATED BALLOTING WON'T BE HELD UNTIL NEXT YEAR AN AILING 30YEAROLD MAN COMMITTED SUICIDE NEAR DETROIT AS RETIRED PATHOLOGIST JACK KEVORKIAN STOOD BY THE SUICIDE WAS THE 17TH IN THE PRESENCE OF KEVORKIAN WHO HAS DARED PROSECUTORS TO ARREST HIM FOR HELPING TERMINALLY ILL PEOPLE KILL THEMSELVES A MICHIGAN LAW MAKING ASSISTED SUICIDES A FELONY WAS REINSTATED IN JUNE 9308050083 930805 TAX BILL RETROACTIVE UNCONSTITUTIONAL BY STEPHEN C GLAZIER AS THIS PAGE WENT TO PRESS THE NEW BUDGET BILL WAS HEADING TOWARD PASSAGE BY CONGRESS YET THE BILL CONTAINS PROVISIONS THAT ARE UNCONSTITUTIONAL BECAUSE THEY ARE RETROACTIVE THESE RETROACTIVE PROVISIONS NEED TO BE DEBATED AND CORRECTED IF THEY ARE NOT AND THE BILL BECOMES LAW WE CAN EXPECT TAXPAYER LITIGATION TO OVERTURN THE PROVISIONS SPECIFICALLY THE BILL CONTAINS TAX PROVISIONS THAT WOULD RAISE INCOME TAX RATES AND CERTAIN ESTATE TAX RATES RETROACTIVELY TO JAN 1 OF THIS YEAR YET ARTICLE I SECTION 9 CLAUSE 3 OF THE CONSTITUTION SAYS THAT NO EX POST FACTO LAW SHALL BE PASSED THE FOUNDERS' PURPOSE HERE WAS TO ENSURE THAT LAWS ARE GENERAL AND PROSPECTIVE RATHER THAN SPECIFIC AND RETROACTIVE SPECIFIC RETROACTIVE LAWS TEND TO LOOK MORE LIKE JUDGMENTS AND PENALTIES FROM JURIES THAN LIKE LEGISLATION IN THE NATIONAL INTEREST RETROACTIVE LAWS ALSO WOULD ALLOW A NEW PARTY TAKING POWER AFTER AN ELECTION TO IN EFFECT LEGISLATE HISTORY TO UNDO THE PAST OF ITS OPPONENTS INDEED THE CURRENT BUDGET HAS THE FLAVOR OF A PARTISAN EFFORT BY A NEW PARTY IN THE WHITE HOUSE TO REPEAL THE DECADE OF GREED IE PUNISH THE TAXPAYER FOR 10 YEARS OF ECONOMIC GROWTH DURING REPUBLICAN ADMINISTRATIONS THE NATION'S COURTS HAVE LONG WRESTLED WITH THE ISSUE OF RETROACTIVITY AN 1878 SUPREME COURT CASE BURGESS V SALMON LOOKED AT TAXES SPECIFICALLY IN THAT CASE A TAX INCREASE ON TOBACCO SALES WAS SIGNED INTO LAW ON THE AFTERNOON OF MARCH 3 1875 THE COURT REFUSED TO APPLY THE INCREASE TO A SALE THAT TOOK PLACE ON THE MORNING OF THAT MARCH 3 SAYING THAT THE RETROACTIVE IMPOSITION OF THE INCREASE ON A SALE THAT TOOK PLACE BEFORE THE PRESIDENT PUT PEN TO PAPER WOULD SUBJECT THE TAXPAYER TO A CRIMINAL PUNISHMENT OR PENALTY IN THE AMOUNT OF THE INCREASE THAT WOULD BE AN EX POST FACTO LAW THE COURT WENT ON TO SAY THAT IF THE CASE HAD BEEN BROUGHT BY THE GOVERNMENT AS A CRIMINAL INDICTMENT FOR VIOLATING THE TAX LAW THEN IT WOULD BE EVEN MORE CLEARLY AN EX POST FACTO PROBLEM THE CONSTITUTION HASN'T CHANGED ON THIS ISSUE BUT THE COURTS AND CONGRESS UNFORTUNATELY HAVE IN THIS CENTURY WITH THE INVENTION OF INCOME TAX AND THE GROWTH OF GOVERNMENT INTRUSIVENESS THE COURTS HAVE TENDED TO LIMIT THE EX POST FACTO CONCEPT MOSTLY TO THE AREA OF CRIMINAL LAW PARTICULARLY IN THE CASE OF INCOME TAXES SOME RETROACTIVITY HAS BEEN ALLOWED THIS BUDGET BILL'S RETROACTIVE INCOME AND ESTATE TAXES HOWEVER GO BEYOND EVEN THESE NEW STRETCHED RULES THE MORE MODERN CASES HAVE ALLOWED SOME RETROACTIVE TAX INCREASES BUT LIMITED THEM BY REQUIRING SPECIFIC PRIOR NOTICE TO THE TAXPAYER THIS IS A SIMPLE APPLICATION OF THE CONSTITUTION'S PROCEDURAL DUE PROCESS PROTECTION SPECIFICALLY THESE CASES TEND TO LOOK AT THE NOTICE OF THE PROPOSED CHANGE THAT THE TAXPAYER RECEIVED IF THE SENATE OR HOUSE HAD BILLS IN DEBATE DETAILING THE TAX INCREASE BY A GIVEN DATE THEN IT IS ARGUED THE TAXPAYER STILL HAD ENOUGH NOTICE TO PLAN HIS AFFAIRS BUT EVEN SUCH STRETCHING OF THE RETROACTIVITY RULES HAS NOT TO DATE APPLIED TO TRANSFER TAXES SUCH AS ESTATE TAXES IN A 1927 CASE NICHOLS V COOLIDGE THE SUPREME COURT STRUCK DOWN A RETROACTIVE ESTATE TAX THE COURT SAID THAT SUCH A LAW IS ARBITRARY CAPRICIOUS AND AMOUNTS TO CONFISCATION AND THEREFORE VIOLATES THE CONSTITUTION IN UNTERMEYER V ANDERSON A 1928 CASE THE SUPREME COURT STRUCK DOWN A RETROACTIVE GIFT TAX BOTH TAXES WERE FOUND TO BE UNCONSTITUTIONAL VIOLATIONS OF DUE PROCESS THE IDEA IS THAT NO ONE CAN PROPERLY PLAN HIS AFFAIRS IF ACTIONS TODAY CAN BE AFFECTED SOMEHOW BY FUTURE LAW OF COURSE ANY PERSON WHO WROTE HIS WILL IN JANUARY 1993 PLANNED ACCORDING TO CURRENT LAW IF THAT PERSON DIED BEFORE AUGUST HE COULD NOT POSSIBLY CHANGE HIS WILL TO ACCOMMODATE THE NEW LAW ONE PRACTICAL EFFECT OF THE CURRENT ESTATE TAX PROPOSAL IS THAT CERTAIN WILLS DRAFTED BEFORE AUGUST WILLS FOR PEOPLE WHO HAVE DIED THIS YEAR MAY FAIL TO ALLOCATE THE INHERITANCE AMONG THE DECEASED'S CHILDREN EQUALLY DESPITE THE INTENT OF THE DECEASED BECAUSE OF CONGRESS'S ATTEMPT AT LAW BY SURPRISE SHIRLEY PETERSON A FORMER COMMISSIONER OF INTERNAL REVENUE DOCUMENTED THIS RECENTLY IN THE NEW YORK TIMES IN THIS CENTURY CONGRESS HAS NOT SUCCEEDED IN PASSING A RETROACTIVE ESTATE TAX INCREASE THIS DESPITE EFFORTS SUCH AS THOSE STRUCK DOWN IN NICHOLS YET THIS YEAR CONGRESS IS EVEN PROPOSING TO TAX THE DEAD RETROACTIVELY UNDER THIS CENTURY'S PRECEDENTS INCOME TAX INCREASES AS OPPOSED TO ESTATE TAX INCREASES MAY HAVE SOME RETROACTIVITY BUT NOT AS MUCH AS THIS BILL'S AUTHORS DESIRE IN THE 1981 CASE US V DARUSMONT THE SUPREME COURT UPHELD RETROACTIVE 1976 INCREASES IN THE MINIMUM TAX AND DISCUSSED NOTICE REQUIREMENTS BUT IN THAT CASE THE COURT FOUND THAT THE TAXPAYER HAD NOTICE BECAUSE THE SPECIFIC CHANGES WERE FOUND IN SENATE AND HOUSE REPORTS THAT APPEARED PRIOR TO THE DATE THE LAW WENT INTO EFFECT DISCUSSING THE SAME NOTICE TEST IN 1984 PBGC V GRAY & CO THE SUPREME COURT UPHELD A RETROACTIVE PENSION LAW ON EMPLOYERS THE RETROACTIVE LAW WAS DESIGNED TO PREVENT EMPLOYERS FROM TAKING ADVANTAGE OF LENGTHY LEGISLATIVE PROCESSES AND WITHDRAWING FROM COVERED PENSION PLANS WHILE CONGRESS DEBATED THE CHANGE BUT BOTH THE CASES SET A MODERN LIMIT TO RETROACTIVITY FOR INCOMETAX INCREASES THAT LIMIT IS THE DATE THAT THE SPECIFIC INCREASE WAS FIRST PROPOSED IN CONGRESS ON JAN 1 THE TAXPAYER HAD NO SUCH SPECIFIC NOTICE OF THE TAX INCREASES THAT THE PRESIDENT AND CONGRESS ARE CURRENTLY PROPOSING INDEED ON THAT DATE MOST AMERICANS WERE STILL WAITING FOR THE FAMOUS MIDDLECLASS TAX CUT NOT UNTIL FEB 17 DID THE PRESIDENT GIVE HIS JIM FLORIO SPEECH MAKING IT CLEAR THAT HE WAS GOING TO RAISE TAXES LOOKING AT THE PRECEDENTS EVEN THAT IS NOT ENOUGH TO PROVIDE SPECIFIC NOTICE THE EFFECTIVE NOTICE COULD NOT HAVE HAPPENED UNTIL APRIL 8 WHEN THE LANGUAGE OF THE BUDGET WAS ACTUALLY PROPOSED THIS TAXBYSURPRISE LEAVES THE TAXPAYER IN A TIGHT SPOT WE HAVE BEEN LIVING WITHIN A BUDGET AND SPENDING MONEY FROM PAYCHECK TO PAYCHECK BASED ON OUR TAKE HOME PAY WITH A CERTAIN RATE OF WITHHOLDING NOW CONGRESS CONTEMPLATES TELLING US THAT WE HAVE SPENT TOO MUCH MONEY AND NEXT APRIL WE MUST FIND THE EXTRA CASH TO PAY EXTRA TAXES THAT WE DID NOT KNOW ABOUT CONGRESS'S OWN INHOUSE LAW FIRM THE CONGRESSIONAL RESEARCH SERVICE HAS EVEN SUPPORTED THIS ANALYSIS OF THE NOTICE REQUIREMENT IN A 1986 REPORT TO SUPPORT THE RETROACTIVE TAX INCREASES OF THAT YEAR CRS LAYS OUT THE NOTICE TEST FOR DUE PROCESS BUT ARGUES THAT THE 1986 INCREASES PASSED MUSTER BECAUSE THEIR EFFECTIVE DATE ALTHOUGH RETROACTIVE WAS AFTER THE INCREASES WERE FIRST PROPOSED IN WRITING IN CONGRESS BUT THE CURRENT BUDGET BILL FAILS THIS TEST DESCRIBED BY CONGRESS'S OWN LAWYERS CLEARLY THIS CONGRESS DOESN'T CARE WHO SAYS WHAT ABOUT THE CONSTITUTION WHEN IT COMES TO TAKING MORE OF OUR MONEY IT IS IMPOSSIBLE TO PREDICT RELIABLY THE OUTCOME OF ANY CASE THAT MIGHT GO BEFORE THE SUPREME COURT THE LARGER ISSUE HERE THOUGH IS NOT ECONOMIC OR LEGAL IT IS POLITICAL THIS TYPE OF UNCONSTITUTIONAL LEGISLATION IS THE NORM THAT WILL CONTINUE UNTIL THE CURRENT MAJORITY OF CONGRESS IS REMOVED SELFSATISFIED INCUMBENTS IN WASHINGTON MIGHT LIKE TO TAKE A LOOK AT THE CURRENT DRAFT OF THE NEW RUSSIAN CONSTITUTION THAT DOCUMENT'S OWN ARTICLE 57 STATES THAT LAWS INTRODUCING NEW TAXES ARE NOT RETROACTIVE IT SEEMS THAT IN THIS INSTANCE BORIS YELTSIN MAY HAVE MORE RESPECT FOR THE US CONSTITUTION THAN THE MAJORITY OF OUR OWN HOUSE OF REPRESENTATIVES MR GLAZIER IS A LAWYER IN WASHINGTON DC SEE RELATED ARTICLE AND MARRED BY TRUST FUND GIMMICK WSJ AUG 5 1993 9308050082 930805 WHO'S NEWS WYNN'S INTERNATIONAL INC WYNN'S INTERNATIONAL INC ORANGE CALIF THIS PRODUCER OF PRODUCTS FOR THE AUTOMOTIVE AFTERMARKET NAMED ROBERT H HOOD AND BARTON BEEK TO ITS BOARD INCREASING THE BOARD'S MEMBERS TO EIGHT MR HOOD 61 YEARS OLD IS PRESIDENT OF MCDONNELL DOUGLAS CORP'S DOUGLAS AIRCRAFT UNIT IN LONG BEACH CALIF MR BEEK 69 IS A PARTNER OF THE LOS ANGELES LAW FIRM O'MELVENY & MYERS HE SUCCEEDS BF SANDY COGGAN 75 WHO RETIRED FROM WYNN'S BOARD IN MAY 9308050081 930805 LEISURE & ARTS ON DISK NAZIERA DEGENERATE MUSIC' EXHUMED BARRYMORE LAURENCE SCHERER AFTER MORE THAN HALF A CENTURY OF NEGLECT AN IMPORTANT BODY OF MUSIC IS BEING EXHUMED IN A NEW COMPACT DISK SERIES FROM LONDON RECORDS THAT MIGHT WELL PROVE THE LABEL'S MOST SIGNIFICANT PROJECT SINCE GEORG SOLTI'S RING ENTARTETE MUSIK DEGENERATE MUSIC TAKES ITS NAME FROM A NOTORIOUS EXHIBITION OF PROSCRIBED MUSIC STAGED BY THE NAZIS IN 1938 THE COMPOSERS BEING REVIVED NOW WERE OFFICIALLY BANNED AND SHUNNED IN HITLER'S GERMANY THE LIST OF PROJECTED RECORDINGS IS BOTH AMBITIOUS AND TANTALIZING THROUGH EARLY 1996 LONDON HAS SLATED RELEASES OF 13 CD PACKAGES OF MUSIC BY COMPOSERS PERSECUTED BY THE NAZI REGIME SYMPHONIES BY ERNEST TOCH AND HANNS EISLER STRING QUARTETS BY HANS KRASA AND PAUL HINDEMITH FRANZ WAXMAN'S CANTATA THE SONG OF TEREZIN 1965 OPERA HOWEVER GETS THE MOST ATTENTION AND THE PROJECTED TITLES INCLUDE WORKS THAT HAVE TILL NOW BEEN MERE FOOTNOTES IN HISTORY VIKTOR ULMAN'S DER KAISER VON ATLANTIS SCHEDULED FOR OCTOBER RELEASE FRANZ SCHREKER'S DIE GEZEICHNETEN AND DER GEWALTIGE HAHNREI BY BERTHOLD GOLDSCHMIDT AT 90 THE LAST OF THIS GENERATION STILL LIVING ENTARTETE MUSIK NOT ONLY REPRESENTS THE FIRST MAJOR EXPLORATION OF AN OVERLOOKED QUARTER OF 20THCENTURY REPERTOIRE BUT BRINGS TO LIGHT AN ERA IN WHICH THE LAST FLOWERING OF POSTWAGNERIAN ROMANTICISM ACTUALLY COEXISTED IN PEACEFUL RIVALRY WITH THE MODERNIST CAMP THE NAZIS' PROGRAM OF ETHNIC CLEANSING DESTROYED ALL THAT ALMOST PERMANENTLY AFTER PUBLICLY BURNING BOOKS BY JEWISH AUTHORS IN 1933 THEY TARGETED GERMANY'S ART WORLD HOLDING AN EXHIBITION IN MUNICH ENTARTETE KUNST IN 1937 ABOUT A YEAR LATER THEY PUT TOGETHER ANOTHER SHOW ENTARTETE MUSIK AT DUSSELDORF UNDER THE GUISE OF MUSICAL AND AESTHETIC CRITICISM THE NAZIS ASSEMBLED PHOTOGRAPHS CARICATURES SCORES NEGATIVE NEWSPAPER REVIEWS AND COMMENTARY THAT SLANDERED MUSICIANS AS DISPARATE AS KURT WEILL RICHARD TAUBER AND JOSEPHINE BAKER JEWS CATHOLICS BLACKS AND ANYONE WHO DARED ASSOCIATE WITH THEM CAME UNDER FIRE JAZZ ATONALITY SOUTH AMERICAN DANCE RHYTHM ANYTHING THAT VEERED FROM THE NAZIS' NARROW DEFINITION OF TRADITIONAL GERMAN MUSIC WAS LUMPED TOGETHER AS DEGENERATE JEWISH COMPOSERS NATURALLY BORE THE BRUNT OF THE EXHIBITION THE CURATOR HANSSEVERUS ZIEGLER PROCLAIMED THAT THE SHOW PRESENTS THE TRIUMPH OF THE SUBHUMAN OF ARROGANT JEWISH IMPERTINENCE AND COMPLETE INTELLECTUAL NULLIFICATION IT ISN'T SURPRISING THEREFORE THAT THE FIRST TWO WORKS IN THE LONDON SERIES ARE THE FIRST COMPLETE RECORDING OF ERNST KRENEK'S JONNY SPIELT AUF JOHNNY STRIKES UP AND ERICH WOLFGANG KORNGOLD'S OPERA DAS WUNDER DER HELIANE HELIANE'S MIRACLE CHOICES THAT ILLUSTRATE THE TOTAL CULTURAL CONFUSION GENERATED BY THE NAZI PROPAGANDA MACHINE NO TWO COMPOSERS COULD HAVE BEEN AS DISSIMILAR IN BACKGROUND OR ARTISTIC OUTLOOK THE JEWISH KORNGOLD 18971957 WAS THE SON OF JULIUS KORNGOLD VIENNA'S MOST POWERFUL CONSERVATIVE MUSIC CRITIC A WUNDERKIND WHOM MAHLER HAD PRONOUNCED A GENIUS AT SEVEN KORNGOLD'S FIRST TWO OPERAS THE ONEACT COMEDY DER RING DES POLYKRATES AND THE MORE DECADENT COSTUME DRAMA VIOLANTA WERE BOTH PERFORMED BEFORE HIS 19TH BIRTHDAY KRENEK 19001991 A CATHOLIC WAS KNOWN AS THE ULTRAMODERNIST AMONG THE EMERGING AVANTGARDE BOTH JONNY AND HELIANE APPEARED IN 1927 AND TO ASSURE THE SUCCESS OF HIS SON'S WORK JULIUS KORNGOLD DID ALL HE COULD TO BESMIRCH KRENEK'S IRONICALLY JONNY ADVERTISED AS THE WORLD'S FIRST JAZZ OPERA PROVED AN IRRESISTIBLE NOVELTY AS IT CIRCULATED THROUGH THE THEATERS OF EUROPE KORNGOLD'S ELABORATE MYSTERY PLAY WHICH HE DECLARED HIS MASTERPIECE FAILED TO CATCH ON EVEN BEFORE THE NAZIS DID THEIR DIRTY WORK THAT BOTH WORKS ARE AT MUSICAL ANTIPODES AND OVER THE TOP IN THEIR WAY IS PRECISELY WHY THEY CAPTURE THE HYSTERICAL DECADENCE OF CENTRAL EUROPE BETWEEN THE WARS WHAT THEY SHARE WITH EACH OTHER AND WITH SUCH OPERAS OF THEIR DAY AS STRAUSS'S DIE FRAU OHNE SCHATTEN PUCCINI'S TURANDOT ZANDONAI'S FRANCESCA DA RIMINI AND KORNGOLD'S OWN DIE TOTE STADT IS SEX SEX IN ORDER TO CONCEIVE SEX WITH AN ICE QUEEN SEX WITH YOUR BROTHER'S WIFE SEX WITH YOUR DEAD WIFE'S DEAD RINGER THEY DIDN'T CALL IT THE ROARING '20S FOR NOTHING IN HELIANE A MESSIANIC STRANGER IMPRISONED BY THE EVIL RULER OF A JOYLESS KINGDOM IS ULTIMATELY REDEEMED BY THE LOVE OF THE RULER'S BEAUTIFUL AND ANGELIC WIFE THE SEXSTARVED RULER CAN'T MANAGE TO LAY A LIBIDINOUS FINGER ON HER BUT SHE DOFFS HER CLOTHES FOR THE STRANGER QUICKLY ENOUGH IN JONNY A NEUROTIC COMPOSER MUST COME TO GRIPS WITH REAL LIFE TO FULFILL HIS LOVE FOR AN OPERA SINGER NAMED ANITA AFTER ENCOUNTERING HER WHILE CONTEMPLATING HIS FAVORITE OBSESSION AN ALPINE GLACIER ON THE WAY ANITA SLEEPS WITH A LADYKILLING VIOLINIST WHOSE PRICELESS FIDDLE IS STOLEN BY JONNY A BLACK JAZZ MUSICIAN WHO FIDDLES WITH HOTEL CHAMBERMAIDS THUS FAR LONDON RECORDS'S PRODUCTION VALUES ARE HIGH CONDUCTOR LOTHAR ZAGROSEK AND THE GEWANDHAUS ORCHESTRA OF LEIPZIG MAKE THE MOST OF KRENEK'S QUIRKY WORK WHILE UNDER JOHN MAUCERI THE BERLIN RADIO SYMPHONY SQUEEZES THE RIPEST ORCHESTRAL NECTAR FROM KORNGOLD'S HYPERROMANTIC SCORE VIOLIN SOLOS HUSHED TINTINNABULATIONS OF CYMBAL AND CELESTA DRIPPING HARP CHORDS LISTEN FOR INSTANCE TO THE SHIMMERING SOUNDS OF STRING HARMONICS HARP AND FLUTE AS HELIANE ENTERS THE STRANGER'S CELL IN ACT I GUSTAV KLIMT'S GOLDLEAFED PAINTINGS SET TO MUSIC AND IF YOU WANT TO HEAR THE ORIGINAL STAR WARS OUTERSPACE MUSIC JUST TURN TO ACT II VOCALLY BOTH RECORDINGS ARE MORE THAN ADEQUATE IF NOT STUNNING ALESSANDRA MARC AS KRENEK'S ANITA AND ANNA TOMOWASINTOW AS KORNGOLD'S HELIANE ARE THE TWO NAME ARTISTS ALONG WITH THE VETERAN NICOLAI GEDDA WHO IS SPLENDIDLY CAST AS KORNGOLD'S ELDERLY BLIND JUDGE BARITONES KRISTER ST HILL AND MICHAEL KRAUS ARE SMOOTHVOICED AS KRENEK'S JONNY AND DANIELLO RESPECTIVELY BUT IF NEITHER RECORDING PROVIDES A BELCANTO FEAST BOTH OPERAS DESERVE REPEATED LISTENINGS THOSE INTERESTED IN LONDON'S SERIES SHOULD ALSO TAKE NOTE OF SEVERAL RELATED DISKS FROM KOCH INTERNATIONAL UNQUIET PEACE THE LIED BETWEEN THE WARS FEATURES SPLENDID PERFORMANCES BY THE NEW YORK FESTIVAL OF SONG OF WORKS BY EISLER PFITZNER ZEMLINSKY WEILL AND OTHER CONTEMPORARIES KOCH'S TEREZIN MUSIC ANTHOLOGY SERIES THUS FAR INCLUDES EXCELLENT RECORDINGS OF PIANO CHAMBER AND VOCAL MUSIC BY GIDEON KLEIN AND VIKTOR ULLMAN BOTH OF WHOM PERISHED IN THE CAMPS THESE ARE GOOD PERFORMANCES OF SOME STRIKING MATERIAL MR SCHERER WRITES THE LETTER FROM NEW YORK FOR GRAMOPHONE MAGAZINE 9308050080 930805 REVIEW & OUTLOOK EDITORIAL CONGRESS'S SECRET DRAWER THE ONGOING DRAMA IN THE CAPITOL MAKES IT CLEARER THAN EVER THAT CONGRESS CAN'T CONTROL EITHER ITSELF OR ITS BUDGET A LARGE PART OF THE PROBLEM IS PROCEDURE AN ARCANE SET OF RULES EVOLVED OVER THE YEARS TO LET CONGRESSPERSONS PROTECT EACH OTHER AND KEEP CONSTITUENTS IN THE DARK REP JIM INHOFE HAS LAUNCHED A CAMPAIGN AGAINST THE KEYSTONE OF THESE RULES THE VEIL OF SECRECY COVERING A DEVICE CALLED THE DISCHARGE PETITION IT WORKS LIKE THIS THE HOUSE CONSPIRES TO BOTTLE UP IN COMMITTEE ALL THE BILLS THAT ARE POPULAR IN THE COUNTRY BUT UNPOPULAR ON CAPITOL HILL BALANCING THE BUDGET OR LIMITING TERMS FOR EXAMPLE THE RULES COMMITTEE IS PARTICULARLY CRUCIAL AS IT WAS IN SHELVING CIVIL RIGHTS BILLS IN THE 1950S THE RULES COMMITTEE SIMPLY SITS ON A BILL ALLOWING MEMBERS TO POSTURE IN PUBLIC IN SUPPORT WHILE NEVER HAVING TO VOTE ON IT MUCH LESS ENACT IT THE DISCHARGE PETITION IS SUPPOSED TO SERVE AS A PROTECTION A BILL CAN BE FORCED ONTO THE FLOOR IF A MAJORITY OF MEMBERS SIGN A PETITION BUT THAT RARELY SUCCEEDS BECAUSE UNTIL THE REQUIRED NUMBER OF 218 IS REACHED THE LIST OF SIGNERS IS KEPT STRICTLY SECRET SO MEMBERS CAN STILL POSTURE IN PUBLIC AND EFFECTIVELY VOTE THE OTHER WAY IN SECRET EVEN COSPONSORING A BILL BUT REFUSING TO SIGN ITS DISCHARGE PETITION WORSE ONLY HOUSE LEADERS KNOW WHO HAS SIGNED AND WHEN A PETITION NEARS 218 THEY CAN PRESSURE THE MOST PLIABLE MEMBERS TO DROP OFF DISCHARGE PETITION PROCEDURES HAVE THE FLAVOR OF A COVERT BROTHERHOOD RATHER THAN A REPRESENTATIVE BODY PETITIONS ARE KEPT LOCKED IN A DRAWER AT THE CLERK'S DESK THE DRAWER CAN ONLY BE OPENED DURING A HOUSE SESSION AND ONLY A SIGNING MEMBER CAN SEE A PETITION MEMBERS CANNOT TAKE ANY NOTES AND CAN'T EVEN BRING THEIR OWN PENS TO THE DESK THEY MUST READ A STATEMENT SIGNED BY THE SPEAKER NOTING THAT DISCLOSING ANY NAMES ON THE PETITION IS STRICTLY PROHIBITED UNDER THE PRECEDENTS OF THE HOUSE A PROHIBITION IMPOSED IN 1931 BY SPEAKER JOHN NANCE GARNER BUT NEVER MADE PART OF HOUSE RULES VIOLATORS FACE DISCIPLINARY ACTION UP TO AND INCLUDING EXPULSION REP INHOFE WAS GRANTED FLOOR TIME LAST NIGHT TO DARE HOUSE LEADERS TO CARRY OUT THIS THREAT MR INHOFE FILED A BILL TO REQUIRE THAT SIGNATURES ON A DISCHARGE PETITION BE MADE PUBLIC AND IT WAS PROMPTLY ASSIGNED TO THE RULES COMMITTEE FOR BURIAL SO HE STARTED A DISCHARGE PETITION TO BRING IT TO THE FLOOR AND QUIETLY ASKED EACH SIGNER TO MEMORIZE OTHER NAMES ON THE LIST BY NOW HE'S PAINSTAKINGLY ASSEMBLED A LIST OF 200 SIGNERS ONLY 18 SHORT OF A MAJORITY HE REVEALED LAST NIGHT THAT HE WILL DISCLOSE THE NAMES OF ALL MEMBERS WHO HAVE NOT SIGNED THE PETITION AND IS READY TO FACE ANY DISCIPLINARY ACTION AGAINST HIM AS A PUBLIC SERVICE WE'VE AGREED TO PRINT HIS LIST AS CONGRESS LEAVES WASHINGTON TO VISIT ITS HOME CONSTITUENCIES WATCH THIS SPACE TO LEARN IF YOUR CONGRESSPERSON WANTS SECRECY OR OPENNESS IN GOVERNMENT OF COURSE MEMBERS NOT ON MR INHOFE'S PETITION CAN SIGN UP FOR OPENNESS BEFORE LEAVING TOWN AS HE ADVISED HIS COLLEAGUES LAST NIGHT IT'S JUST ONE SHORT TRIP TO THE SECRET DRAWER TO SIGN DISCHARGE PETITION NO 2 TAKE A FRIEND 9308050079 930805 MARKETING & MEDIA ADVERTISING BASIC NO 3 BESTSELLING CIGARETTE TO SEE WHAT ADS WILL DO TO SALES BY EBEN SHAPIRO PHILIP MORRIS SPENDS NEARLY 100 MILLION A YEAR KEEPING THE IMAGE OF THE NO 1 CIGARETTE BRAND MARLBORO SEARED INTO THE PUBLIC CONSCIOUSNESS RJ REYNOLDS SPENDS UPWARD OF 50 MILLION ADVERTISING ITS BRANDS INCLUDING NO 2 RIVAL WINSTON SO WHAT'S THE AD BUDGET FOR THE NATION'S THIRDBESTSELLING CIGARETTE BASICALLY ZERO A LITTLEKNOWN DEEPDISCOUNT BRAND CARRYING THE NOFRILLS NAME OF BASIC IS NOW THE NO 3 BRAND IN THE COUNTRY SANS ADVERTISING PHILIP MORRIS BEGAN ACTIVELY PUSHING THE BRAND ONLY LATE LAST YEAR YET IN THIS YEAR'S SECOND QUARTER ALONE THE MARKETER SHIPPED AN ESTIMATED 62 BILLION BASIC CIGARETTES TRAILING ONLY MARLBORO AND WINSTON IT IS OUTSELLING LONGESTABLISHED HEAVILY ADVERTISED BRANDS SUCH AS CAMEL AND NEWPORT BASIC'S SUCCESS MIGHT MAKE AD EXECUTIVES A LITTLE QUEASY GIVEN THE BRAND'S LACK OF ADVERTISING BUT FEAR NOT PHILIP MORRIS IS ABOUT TO UNLEASH A MULTIMILLIONDOLLAR AD CAMPAIGN FOR THE UPSTART BRAND THE MOST EXTENSIVE PUSH YET FOR SUCH A WELL BASIC CIGARETTE THE ADVERTISING FLURRY WHICH STARTS NEXT MONTH IS PART OF PHILIP MORRIS'S PLAN TO MAKE BASIC AS DOMINANT IN DISCOUNTS AS MARLBORO IS IN PREMIUM SMOKES YESTERDAY PHILIP MORRIS DEMONSTRATED JUST HOW SERIOUS IT IS ABOUT MAKING BASIC THE CHEAP SMOKE OF CHOICE ONLY TWO WEEKS AGO THE BIG TOBACCO COMPANY HAD TRIED TO IMPOSE PRICE INCREASES FOR ALL OF ITS CHEAPER BRANDS HOPING RIVALS WOULD FOLLOW WHEN THEY DIDN'T PHILIP MORRIS YESTERDAY COUNTERED SWIFTLY RESCINDING THE PRICE INCREASES AND IMPOSING A NEW ROUND OF CUTS FOR ITS CHEAPEST CIGARETTES BASIC AMONG THEM PHILIP MORRIS WILL NOT ALLOW ITSELF TO BE STRATEGICALLY DISADVANTAGED AGAIN VOWS JAMES J MORGAN SENIOR VICE PRESIDENT OF MARKETING FOR PHILIP MORRIS USA BASIC AND OTHER CHEAP SMOKES INCLUDING RJR NABISCO HOLDINGS' DORAL WILL NOW SELL FOR ABOUT 130 A PACK COMPARED WITH 180 THE PRICE OF TOP BRANDS INCLUDING CAMEL AND MARLBORO AFTER RECENT CUTS THE MAKER OF MARLBORO IS WIDELY REGARDED AS THE BEST MARKETER IN THE CIGARETTE BUSINESS AND ITS NEWFOUND AGGRESSIVENESS IS MAKING RIVALS UNEASY PHILIP MORRIS EXECUTIVES ARE CLEARLY REINVIGORATED BY THE SHARP BUT COSTLY REBOUND IN MARLBORO'S MARKET SHARE THAT FOLLOWED THE COMPANY'S MOVE LAST APRIL TO CUT PRICES BY 40 CENTS A PACK BUT MOUNTING A NEW AD BLITZ FOR BASIC AT THE CHEAP END OF THE MARKET CARRIES SIGNIFICANT RISK PHILIP MORRIS MARKETERS WORRY THAT TOO MUCH ADVERTISING FOR BASIC WOULD ALIENATE SOME OF THE BRAND'S SMOKERS THEY ARE ATTRACTED TO BASIC'S NOFRILLS IMAGE AND MIGHT BALK AT THE NOTION THEY ARE HAVING TO PAY FOR SOME NEW SWANKY AD CAMPAIGN HOW MANY ADS CAN A BASIC SMOKER SEE UNTIL THEY SAY THIS IS NOT A GREAT VALUE BRAND ASKS MR MORGAN ADVERTISING FOR BASIC HE ADDS IS A TIGHTROPE ACT BUT IT COULD BE A CLIFF ALSO THE DROLL CAMPAIGN FOR BASIC MAY ATTRACT NEW SMOKERS TO THE DISCOUNT CATEGORY FURTHER HURTING PHILIP MORRIS'S MAJOR BRANDS CIGARETTE COMPANIES PHILIP MORRIS IN PARTICULAR HAVE CONSISTENTLY UNDERESTIMATED SMOKERS' DESIRE FOR DISCOUNT BRANDS NOW JUST AS DISCOUNT GROWTH HAS PLATEAUED AND THE NICHE IS AT ABOUT 40 OF ALL UNIT SALES PHILIP MORRIS IS ESSENTIALLY PUTTING ITS STAMP OF APPROVAL ON DISCOUNTS BY MAKING THEM MORE DESIRABLE THROUGH ADVERTISING MR MORGAN OF PHILIP MORRIS SAYS THERE MAY BE LITTLE OTHER CHOICE IF YOU DON'T COMPETE AGAINST YOURSELF SOMEBODY ELSE IS GOING TO COMPETE AGAINST YOU THE BULK OF BASIC'S GROWTH WON'T BE AT THE EXPENSE OF OTHER PHILIP MORRIS BRANDS HE MAINTAINS DANIEL SMITH A TOBACCO COMPANY CONSULTANT AND PROFESSOR OF MARKETING AT THE UNIVERSITY OF PITTSBURGH'S KATZ SCHOOL OF BUSINESS SAYS THE RISK MAY BE MINIMAL THOSE SMOKERS WILLING TO GIVE UP FULLPRICE BRANDS AND TRADE DOWN ALREADY HAVE AND A NEW BASIC AD WILL APPEAL MOSTLY TO THEM THERE ISN'T THAT BIG OF A RISK OF CANNIBALIZATION MR SMITH CONTENDS BUT PHILIP MORRIS IS STILL TRYING TO CAREFULLY SHIELD MARLBORO SMOKERS FROM THE BASIC ADS AVOIDING PLAYBOY AND ROLLING STONE RELATIVELY UPSCALE MAGAZINES USED FOR ITS PREMIUM BRANDS BASIC ADS WILL RUN IN PEOPLE GOOD HOUSEKEEPING AND IN SUNDAY NEWSPAPER SUPPLEMENTS YOUR BASIC MAGAZINE LIST PHILIP MORRIS MARKETERS JOKE PHILIP MORRIS ALSO PLANS TO BLANKET CITIES WITH BILLBOARDS PROCLAIMING YOUR BASIC PLEASURE THE ADS PRODUCED BY AGENCY LEO BURNETT IN CHICAGO PLAYFULLY TAKE ADVANTAGE OF THE BRAND'S NAME THE ADVERTISMENT FOR A PRODUCT GIVEAWAY PROMISES YOUR BASIC STUFF INCLUDING YOUR BASIC TSHIRT AND YOUR BASIC CAP GIVEN THE ENDLESS POSSIBILITIES OF BASIC JOKES PHILIP MORRIS IS DROPPING THE BRAND'S CURRENT TAGLINE YOUR EVERYDAY CIGARETTE WHICH THE COMPANY FELT WAS TOO PEDESTRIAN PHILIP MORRIS WON'T REVEAL ITS AD BUDGET FOR BASIC BUT IT IS ESTIMATED TO BE IN THE 10 MILLION TO 15 MILLION RANGE THE EFFORT IS AIMED AT INCREASING BASIC'S MARKET SHARE NOW AT 54 OF TOTAL CIGARETTE SHIPMENTS IN UNIT TERMS ACCORDING TO WHEAT FIRST SECURITIES INC THE BRAND HELD ONLY 2 OF THE MARKET AT THE END OF 1992 WHEN PHILIP MORRIS DECIDED BASIC SHOULD BE ITS LEAD HORSE IN THE RACE FOR DISCOUNT SMOKERS AFTER AN EXTENSIVE REVIEW PHILIP MORRIS EXECUTIVES CHOSE BASIC OVER OTHER CHEAP BRANDS IN ITS STABLE SUCH AS ALPINE AND BUCKS BECAUSE OF THEIR SENSE THAT BASIC'S NONONSENSE IMAGE WAS PERFECT FOR THE ZEITGEIST THEY SPRUCED UP THE PACKAGING AND BEGAN PUSHING BASIC AGGRESSIVELY INTO NATIONAL DISTRIBUTION COMPETITORS SAY BASIC OWES PART OF ITS HIGH SHIPMENTS TO PHILIP MORRIS GIVING AWAY FREE PACKS TO SMOKERS BUT THE COMPANY CLAIMS THAT OVER 90 OF BASIC BUYERS ASK FOR THE BRAND BY NAME UNUSUAL IN THE DISCOUNT CATEGORY THIS BRAND HAS BECOME THE ABSOLUTE PERSONIFICATION OF A NOFRILLS BRAND SAYS MR MORGAN OF PHILIP MORRIS SMOKERS GET IT THREE YEARS AFTER SCRAPPING PLANS TO ENDORSE LOWFAT FOODS WITH A HEARTGUIDE SEAL OF APPROVAL THE AMERICAN HEART ASSOCIATION IS REVIVING THE IDEA IN A NEW FORM THE HEART ASSOCIATION SAID IT WILL PERMIT COMPANIES TO PUT ITS HEARTANDTORCH LOGO ON LABELS OF PACKAGED FOOD IT DEEMS CONSISTENT WITH THE ASSOCIATION'S DIETARY GUIDELINES COMPANIES THAT USE THE LOGO MUST ALSO PRINT AN EXPLANATORY STATEMENT FROM THE AHA WHICH READS IN PART THIS PRODUCT IS CONSISTENT WITH THE AMERICAN HEART ASSOCIATION'S DIETARY GUIDELINES WHEN USED AS PART OF A TOTAL BALANCED DIET THE AHA DOESN'T ENDORSE ANY PRODUCT SERVICE OR EQUIPMENT QUAKER OATS CO IS THE FIRST COMPANY TO SIGN UP THE ASSOCIATION SAID AS SOON AS SEPT 1 QUAKER'S OLDFASHIONED AND QUICK OATS WILL CARRY THE LOGO AND STATEMENT ALREADY THE PLAN IS MEETING WITH SOME CRITICISM FROM THE COMPANIES' POINT OF VIEW IT SOUNDS TERRIFIC BUT IT MIGHT MAKE IT VERY DIFFICULT FOR THE AHA TO CRITICIZE ANYTHING THAT QUAKER DOES SAID MICHAEL JACOBSON EXECUTIVE DIRECTOR OF THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST IN 1990 THE HEART ASSOCIATION WAS FORCED TO DISBAND THE HEARTGUIDE PROGRAM UNDER PRESSURE FROM THE FOOD AND DRUG ADMINISTRATION WHICH OBJECTED TO THIRDPARTY APPROVALS OF FOOD LABELS AN FDA OFFICIAL SAID THE AGENCY WOULD TREAT COMPANIES' USE OF THE ASSOCIATION'S LOGO AS IT DOES ALL OTHER IMPLIED HEALTH CLAIMS UNDER THE 1990 NUTRITION LABELING AND EDUCATION ACT UNLIKE WITH THE HEARTGUIDE PROGRAM THE AHA WON'T REQUIRE FOOD COMPANIES TO PAY A FEE FOR THE LOGO THE ASSOCIATION SAID ANY FOOD COMPANIES EXCEPT TOBACCO COMPANIES AND THEIR SUBSIDIARIES COULD SUBMIT PRODUCTS FOR THE AHA'S APPROVAL NUTRI/SYSTEM INC WHICH FILED FOR BANKRUPTCYLAW PROTECTION EARLY THIS SUMMER PICKED THE PHILADELPHIA OFFICE OF FOOTE CONE & BELDING COMMUNICATIONS AS ITS NEW AD AGENCY INDUSTRY EXECUTIVES SAID BILLINGS COULDN'T BE DETERMINED ALTHOUGH NUTRI/SYSTEM BILLED AN ESTIMATED 40 MILLION LAST YEAR WITH ITS PREVIOUS AGENCY LOTUS MINARD PATTON MCIVER OF NEW YORK NUTRI/SYSTEM OFFICIALS COULDN'T BE REACHED OTHER CONTENDERS FOR THE ACCOUNT INDUSTRY EXECUTIVES SAID WERE BELIEVED TO BE YOUNG & RUBICAM NEW YORK AND GRAY KIRK/VANSANT BALTIMORE ACCOUNTS PARKER PEN WHICH GILLETTE CORP ACQUIRED EARLIER THIS YEAR TAPPED INTERPUBLIC GROUP'S MCCANNERICKSON FOR ITS ESTIMATED 15 MILLION GLOBAL ACCOUNT EURO RSCG UNITS MESSNER VETERE BERGER MCNAMEE SCHMETTERER OF NEW YORK AND WCRS OF LONDON HANDLED THE BUSINESS PREVIOUSLY THE SWITCH WHICH CONSOLIDATES GILLETTE'S STATIONERY PRODUCTS WITH MCCANN WAS MADE WITHOUT A REVIEW A GILLETTE SPOKESMAN SAID G HEILEMAN BREWING CO ASSIGNED NATIONAL ADVERTISING FOR MICKEY'S MALT LIQUOR TO THE DALLAS AGENCY RICHARDS GROUP THE AGENCY SAID MICKEY'S IS THE FASTEST GROWING MALT LIQUOR IN THE COUNTRY BILLINGS COULDN'T BE DETERMINED RICHARDS CREATES REGIONAL ADS FOR HEILEMAN'S LONE STAR AND RAINIER BEERS 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 9308050078 930805 LEISURE & ARTS FILM SWEDISH ECCENTRICS DOCTOR ON THE RUN BY JULIE SALAMON HOUSE OF ANGELS A POPULAR SWEDISH FILM NOW OPENING IN THE US BEGINS WITH AN OLD MAN NAMED ERIK PER OSCARSSON AS HE PREPARES FOR DEATH HE ISN'T ILL IN FACT HE'S SO HEALTHY THAT WHEN HE TAKES HIS WILL TO HIS LAWYER WHO HAPPENS TO BE DANCING THE RHUMBA THE LAWYER IS SURPRISED WHY TODAY HE ASKS ERIK SIMPLY SMILES WHY DANCE TODAY HE RESPONDS AS IT TURNS OUT THE OLD MAN WAS PRESCIENT JUST AFTER HE PICKS OUT A CEMETERY PLOT A NICE SHADY SPOT HE'S KILLED IN A FREAK ACCIDENT SINCE HE WAS THE RICHEST MAN IN TOWN A TINY RURAL BACKWATER HIS DEATH IS THE SUBJECT OF MUCH SPECULATION ESPECIALLY BY THE SAWMILL OWNER AXEL SVEN WOLLTER WHO HAS BEEN LUSTING AFTER ERIK'S TIMBERLAND ERIK'S ONLY DAUGHTER DIED YEARS BEFORE SO AXEL THINKS HE IS HOME FREE ERIK'S PROPERTY WILL BE TURNED OVER TO THE GOVERNMENT AND AUCTIONED OFF TO THE HIGHEST BIDDER AND AXEL KNOWS HE HAS NO COMPETITION HOWEVER IT TURNS OUT ERIK'S WILL CONTAINS A BOMBSHELL HE HAS AN HEIR AFTER ALL A GRANDDAUGHTER NAMED FANNY THE MOVIE TELLS THE STORY OF WHAT HAPPENS THE SUMMER FANNY COMES TO TOWN TO CLAIM HER INHERITANCE THIS MAY SOUND LIKE THE INGREDIENTS FOR A MOROSE STEW OF SCANDINAVIAN BROODING AND STRIFE BUT HOUSE OF ANGELS HAS A SUNNY TEMPERAMENT CLOSER IN SPIRIT TO CAPRA THAN TO BERGMAN DIRECTOR COLIN NUTLEY WHO IS BRITISH REVEALS GREAT AFFECTION FOR HIS ADOPTED COUNTRY WITH THIS AMUSING AND UNPREDICTABLE PORTRAIT OF ITS PROVINCIAL AND NOTSOPROVINCIAL PEOPLE BEFORE FANNY MAKES HER ENTRANCE MR NUTLEY GIVES US THE LAY OF THE LAND THE PLACIDLY BEAUTIFUL COUNTRYSIDE WHERE ERIK LIVED IS PEOPLED BY ECCENTRICS AND HYPOCRITES IT'S A FAMILIAR KIND OF SMALL TOWN FILLED WITH PUBLIC RELIGIOUS PROPRIETY AND PRIVATE NAUGHTINESS IT'S THE KIND OF PLACE WHERE EVERYONE KNOWS WHAT'S GOING ON BEFORE ANY INFORMATION HAS BEEN EXCHANGED BUT THIS IS NO PEYTON PLACE '93 MR NUTLEY AND SCREENWRITER SUSANNE FALCK POKE HOLES IN THE STEREOTYPES THEY SET UP THE TOWN'S MINISTER FOR EXAMPLE IS A ROMANTIC WHO WOULD LIKE NOTHING BETTER THAN FOR HIS CONGREGATION TO LOOSEN UP AXEL'S WIFE TURNS OUT TO BE SOMETHING QUITE DIFFERENT FROM THE RIGIDLY DEVOUT AND SMALLMINDED PERSON SHE SEEMS TO BE THESE FILMMAKERS AREN'T LOOKING FOR THE UGLY UNDERBELLY BUT FOR SWEETNESS NOT SACCHARIN BUT THE REAL THING ENTER FANNY AS PLAYED BY A BLITHE BEAUTY HELENA BERGSTROM WE CATCH A GLIMPSE OF HER RIGHT AT THE BEGINNING DONE UP TO SUGGEST A BERLIN CHANTEUSE MAYBE MARLENE DIETRICH IN BLUE ANGEL THE FILM'S TITLE ACTUALLY REFERS TO THE NAME OF ERIK'S FARM HER BIG ENTRANCE COMES LATER WHEN SHE ROARS UP ON THE BACK OF A MOTORCYCLE DRIVEN BY A MAN WHO LOOKS LIKE A REFUGEE FROM THE ROCKY HORROR PICTURE SHOW SHE HOPS OFF STRIPS AWAY HER HEADTOTOE LEATHER SUIT AND REPLACES IT WITH A SEXY BLACK DRESS AND ENTERS THE CHURCH MIDWAY THROUGH ERIK'S FUNERAL WITH HER SHAGGY BLOND HAIR RED LIPSTICK AND SPIKED HEELS SHE LOOKS LIKE ONE TOUGH BABE VERY QUICKLY THOUGH IT BECOMES APPARENT THAT FANNY AND ZAC HER GHOULISH PAL AREN'T WHAT THEY SEEM BIGCITY FLAKES THEY ARE GOODNATURED SOULS WHO HAVE LEARNED ADAPTABILITY FROM THEIR VAGABOND LIVES AS CABARET PERFORMERS BUT IT'S FANNY WHO DIDN'T KNOW HER GRANDFATHER EXISTED WHO HAS TO COPE WITH PERHAPS THE BIGGEST SURPRISE THAT'S BEEN THROWN HER WAY AN UNKNOWN PAST INCLUDING THE POSSIBILITY OF DISCOVERING WHO HER FATHER WAS MS BERGSTROM A WONDERFULLY INTUITIVE ACTRESS GETS ACROSS BOTH FANNY'S ACCESSIBILITY AND HER MYSTERY SHE LETS YOU SEE THE WAY FANNY OPERATES WITHOUT CANT WHEN SHE FOLLOWS PROTOCOL INVITING THE NEIGHBORS FOR CAKE AND COFFEE IT'S SINCERE YET SHE'S NOT NAIVE EITHER SHE UNDERSTANDS EXACTLY HOW SHE'S BEING SIZED UP AND JUDGED BOTH POSITIVELY AND NEGATIVELY LIKE FANNY THE FILMMAKERS HAVE A GENEROUS SPIRIT THEIR STORY IS PLEASANTLY SUNDAPPLED LIKE THE LANDSCAPE OF A SWEDISH SUMMER THE FUGITIVE OPENS WITH A RECAPITULATION OF THE PLOT OF THE TELEVISION SERIES FROM THE 1960S DR RICHARD KIMBLE FALSELY ACCUSED OF THE MURDER OF HIS WIFE ESCAPES FROM THE BUS TAKING HIM TO DEATH ROW WHEN IT CRASHES AFTER AN ATTEMPTED BREAKOUT BY OTHER PRISONERS BY THE TIME THE WRECKED BUS IS HIT BY A TRAIN SO MUCH NOISY MAYHEM HAS TAKEN PLACE THAT THE AUDIENCE I SAW THE PICTURE WITH WAS LAUGHING AND CLAPPING A PERFECTLY APPROPRIATE RESPONSE TO ONE OF THE MOST STUNNING ACTION SEQUENCES I'VE SEEN ON FILM THE FILMMAKERS NEVER REACH THAT PITCH AGAIN BUT DIRECTOR ANDREW DAVIS AND CINEMATOGRAPHER MICHAEL CHAPMAN RAGING BULL RISING SUN CERTAINLY TRY THE FUGITIVE ISN'T SO MUCH GREAT FILMMAKING AS A PIECE OF FRENETIC CHOREOGRAPHY LIKE THE FAMOUS ENERGIZER BATTERY IT JUST KEEPS GOING AND GOING AND GOING THIS ISN'T LIKE THE UNTOUCHABLES IN WHICH THE FILMMAKERS TOOK A POPULAR TELEVISION SERIES AND ENLARGED THE IDEAS AND CHARACTERS INTO SOMETHING BIGGER MORE PROFOUND HERE THE IDEA IS KEPT FAIRLY SMALL THE WRONGLY ACCUSED MAN PURSUES THE REAL MURDERER WHILE HE IS BEING PURSUED HIMSELF THE PLOT SPEEDS AHEAD SMOOTHLY UNTIL THINGS HAVE TO BE WRAPPED UP WHICH THE TV SERIES DIDN'T REQUIRE THE IDEA MAY BE SMALL BUT THE EXECUTION IS BIG SCREENWRITERS DAVID TWOHY AND JEB STUART KEEP LAYING ON NEW AND MORE IMPOSSIBLE OBSTACLES FOR DR KIMBLE TO OVERCOME MR STUART WHO WROTE DIE HARD SPECIALIZES IN THIS KIND OF CALISTHENICS ALL FORMS OF TRANSPORTATION ARE USED TO MAKE DR KIMBLE'S LIFE MISERABLE AMBULANCES HELICOPTERS TRAINS BUSES ELEVATED SUBWAYS ELEVATORS THE HUMANS GAMELY KEEP UP WITH THE MACHINERY HARRISON FORD AS DR KIMBLE IS SYMPATHETIC AND ATHLETIC AS REQUIRED BUT THE REAL STAR OF THE SHOW IS TOMMY LEE JONES AS THE IDIOSYNCRATIC FBI MAN WHO SHOOTS LIKE CLINT EASTWOOD AND QUIPS LIKE MAXWELL SMART HE'S GREAT VIDEO TIP IN FACT IT'S ABOUT TIME FOR A TOMMY LEE JONES FILM FESTIVAL HE'S VERSATILE GOT HIS START IN LOVE STORY THOUGH HE'S MOST OFTEN IN ACTION PICTURES SUCH AS UNDER SIEGE AND THE PACKAGE HE WAS GOOD AS LORETTA LYNN'S HUSBAND IN COAL MINER'S DAUGHTER AND EVEN BETTER AS CLAY SHAW IN JFK CHECK HIM OUT 9308050077 930805 ECONOMY FED'S SURVEY SHOWS ECONOMY GROWING SLOWLY MANUFACTURING STAYS MIRED STRONG POINTS INCLUDE NEW HOMES CAR SALES BY COLLEEN AE SLEVIN AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON ECONOMIC ACTIVITY CONTINUES TO EXPAND SLOWLY TO MODERATELY ACROSS THE NATION ACCORDING TO A FEDERAL RESERVE SURVEY OF ITS 12 DISTRICT BANKS THE REPORT WHICH COVERS JUNE AND THE FIRST HALF OF JULY UNDERSCORES THE VIEW HELD BY MANY PRIVATE ANALYSTS THAT THE ECONOMY IS STUCK IN A SLOWGROWTH MODE THE ECONOMY EXPANDED AT A MODEST 16 ANNUAL RATE IN THE SECOND QUARTER DISAPPOINTING SOME GOVERNMENT OFFICIALS AND OTHERS WHO WERE LOOKING FOR A BRISKER PACE THE FED FOUND THAT THE MANUFACTURING SECTOR REMAINS SLUGGISH THROUGHOUT THE US AN ASSESSMENT CONSISTENT WITH DATA RELEASED A FEW WEEKS AGO SHOWING THAT OUTPUT AT THE NATION'S FACTORIES MINES AND UTILITIES SLUMPED IN JUNE MOST FED DISTRICTS REPORTED THAT MANUFACTURERS HAVE NOT INCREASED EMPLOYMENT AND DO NOT PLAN TO FOR THE REMAINDER OF THE YEAR AGRICULTURAL CONDITIONS WERE SAID TO BE FAVORABLE IN MANY AREAS WITH FARMERS BENEFITING FROM HIGHER GRAIN PRICES BUT INTENSE FLOODING AND DROUGHT DESTROYED CROPS IN SOME REGIONS SEVERAL DISTRICTS REPORTED TOO MUCH RAIN TOO LITTLE RAIN OR BOTH THE FED REPORTED CROP PROSPECTS ARE UNCERTAIN IN MANY OF THESE AREAS AND WILL BE DETERMINED BY CONDITIONS BETWEEN NOW AND THE FROST ON THE BRIGHTER SIDE CONSTRUCTION OF SINGLEFAMILY HOMES CONTINUED AS A SOURCE OF STRENGTH IN SOME PARTS OF THE COUNTRY THE SURVEY FOUND RETAIL SALES ALSO CLIMBED IN MOST DISTRICTS ALTHOUGH THE RATE OF INCREASE VARIED WIDELY AUTO SALES ROSE IN MANY AREAS THE FED WHOSE POLICY MAKERS CONTINUE TO KEEP A WATCHFUL EYE ON INFLATION SAID PRICE PRESSURES FOR MATERIALS AND FINISHED PRODUCTS WERE REPORTED TO BE MIXED HERE IS A SUMMARY OF THE 12 FEDERAL RESERVE DISTRICTS BOSTON ECONOMIC ACTIVITY GREW SLOWLY PRICES REMAINED STABLE ALTHOUGH CONSUMERS WERE STILL HESITANT TO SPEND THEIR MONEY EMPLOYMENT IN MANUFACTURING GENERALLY HAS EITHER REMAINED LEVEL OR DECREASED SOME COMPANIES STILL PLANNED TO CUT THEIR WORK FORCES NEW YORK RETAIL SALES GOT A BOOST THANKS TO MEMORIAL DAY AND INDEPENDENCE DAY BUT THEN JULY SALES FELL BELOW EXPECTATIONS BUILDERS FOUND IT DIFFICULT TO OBTAIN BANK LOANS WITHOUT SIGNED SALES CONTRACTS ONCE BUILT OFFICE SPACE OFTEN REMAINED UNFILLED FOR A WHILE BECAUSE OF SLUGGISH EMPLOYMENT GROWTH OVERALL EMPLOYMENT PROSPECTS SEEMED TO BE NEGATIVE ALTHOUGH NEW JERSEY'S UNEMPLOYMENT RATE DECLINED TO 69 IN JUNE FROM 74 IN MAY PHILADELPHIA MANUFACTURERS POSTING DECLINES IN ORDERS JUST BARELY EDGED OUT THOSE REPORTING GAINS ALTHOUGH MOST EXPECTED AN IMPROVEMENT WITHIN THE COMING SIX MONTHS SALES AT DISCOUNT SHOPS WERE UP WHILE DEPARTMENT STORE PURCHASES REMAINED LEVEL AUTO SALES FELL SLIGHTLY FROM SPRING'S STRONG PERFORMANCE BANKS REPORTED UNCHANGED LOAN DEMAND CLEVELAND STRONG SALES IN DURABLE GOODS HELPED BOOST AN ECONOMY SUFFERING FROM SLOW GROWTH IN APPAREL AND SEASONAL ITEM SALES LOW FINANCING RATES LED TO A JUMP IN AUTO SALES THE SEASONAL RISE IN HOME BUYING ALSO HELPED HOME FURNISHING AND APPLIANCE SALES INDUSTRIAL MACHINERY MAKERS REPORTED GROWING DEMAND MOST MANUFACTURERS INCLUDING THOSE DOING WELL NOW DID NOT EXPECT TO HIRE NEW WORKERS RICHMOND VA RETAIL SALES WERE UP SLIGHTLY BUT MANUFACTURING REMAINED LEVEL OWING TO WEAK DEMAND SUNNY WEATHER AND PACKAGE DEALS LED TO AN INCREASE IN TOURISM OVER LAST YEAR'S LEVEL LOW INTEREST RATES RESULTED IN AN INCREASE IN HOME REFINANCING ALTHOUGH THE NUMBER OF NEW MORTGAGES ISSUED REMAINED LEVEL BANKERS WARNED OF ECONOMIC DIFFICULTIES THAT AWAIT FARMERS THIS FALL AS A RESULT OF DROUGHT CONDITIONS THIS SUMMER ATLANTA THE SOUTHEAST ECONOMY GREW AT A MODEST PACE CONSUMER SPENDING WAS UP BUT MOMENTUM HAS SLOWED HOME SALES WERE HEALTHY BUT THE MULTIFAMILY AND COMMERCIAL REAL ESTATE MARKETS REMAINED WEAK LUMBER FURNITURE AND HOME TEXTILE PRODUCERS REPORTED INCREASED PRODUCTION BECAUSE OF THE STRONG RESIDENTIAL CONSTRUCTION MARKET HOWEVER THEIR EXPECTATIONS ABOUT FUTURE PRODUCTION ARE LESS OPTIMISTIC THAN THEY WERE EARLIER THIS YEAR CONSUMER LENDING PICKED UP THERE WERE NO REPORTS OF INCREASING PRICE PRESSURES CHICAGO RETAIL SALES PICKED UP STEAM WHILE NEW AND EXISTING HOME SALES ALSO CONTINUED TO RISE MANUFACTURERS REPORTED A SLIGHT DROP IN OUTPUT AND SAID THAT POLITICAL AND ECONOMIC UNCERTAINTIES WERE A WEIGHT ON BUSINESS ACTIVITY WEEKS OF FLOODING HAVE INFLICTED CONSIDERABLE DAMAGE AND HARDSHIP BUT THE DELUGE WASN'T EXPECTED TO THREATEN EXPANSION IN THE DISTRICT'S OVERALL ECONOMY ST LOUIS MANY BUSINESSES REPORTED THAT AT LEAST THROUGH THE MIDDLE OF LAST MONTH THEIR OPERATIONS WERE LARGELY UNAFFECTED BY THE FLOODING FOR MOST ESTABLISHMENTS THE BIGGEST CHANGE WAS SWITCHING TO TRUCKS FROM RAILROADS TO MEET THEIR TRANSPORTATION NEEDS A PRELIMINARY CONSERVATIVE ASSESSMENT OF THE DAMAGE WAS PUT AT 15 BILLION TO 2 BILLION FLOODING ASIDE OTHER REPORTS FROM THE DISTRICT WERE MIXED WITH SOME BUSINESSES SHOWING AN INCREASE IN SALES AND OTHERS EXPERIENCING NO CHANGE OR A DECREASE MINNEAPOLIS IN SPITE OF THE ADVERSE WEATHER RESIDENTIAL AND COMMERCIAL CONSTRUCTION CONTINUED AT A PACE ABOVE LAST YEAR'S LEVELS AND IS PERHAPS THE STRONGEST COMPONENT IN THE DISTRICT ECONOMY GENERAL MERCHANDISE AND VEHICLE SALES ALSO WERE SOLID EXCEPT IN AREAS HIT BY THE FLOODING THE LABOR MARKET IS SHOWING SOME IMPROVEMENT HOWEVER CROPS PARTICULARLY SOYBEANS AND CORN SUFFERED EXTENSIVE DAMAGE FROM THE RAINS AND COLD WEATHER LOSSES ARE LIKELY TO EXCEED 15 BILLION KANSAS CITY RETAIL SALES WERE INCREASING HOUSING ACTIVITY REMAINED STRONG AND BANK LOAN DEMAND WAS UP SLIGHTLY THE ENERGY SECTOR ALSO CONTINUED TO IMPROVE AND MANY DISTRICT FARMERS EXPECT STRONG EARNINGS DESPITE WET WEATHER AND FLOODING RETAIL AND WHOLESALE PRICES WERE GENERALLY STEADY DALLAS THE ECONOMY EXPANDED SLOWLY PARTICULARLY AMONG MANUFACTURERS THE EXCEPTIONS WERE INDUSTRIES TIED TO RESIDENTIAL CONSTRUCTION WHICH REMAINED ROBUST THESE INCLUDED THE LUMBER AND WOOD PRODUCTS FURNITURE AND FIXTURES AND STONE CLAY AND GLASS INDUSTRIES HIGHWAY CONSTRUCTION ALSO INCREASED GROWTH AND EMPLOYMENT GAINS CONTINUED TO BE SLOW IN THE SERVICE SECTOR HOWEVER RETAIL SALES INCREASED SLOWLY THROUGHOUT MOST OF THE DISTRICT WHILE AGRICULTURAL CONDITIONS IMPROVED SLIGHTLY SAN FRANCISCO WEAKNESS IN CALIFORNIA CONTINUED TO OFFSET ECONOMIC GROWTH IN OTHER STATES IN THE DISTRICT IN CALIFORNIA ACTIVITY REMAINED ANEMIC ACROSS A RANGE OF SECTORS INCLUDING MANUFACTURING CONSTRUCTION RETAIL FINANCE AND GOVERNMENT IN ADDITION NEW LAYOFFS WERE ANNOUNCED IN THE COMPUTER INDUSTRY CUTBACKS IN AEROSPACE ALSO WERE RESTRAINING GROWTH IN WESTERN WASHINGTON STATE CONDITIONS WERE STRONGER IN EASTERN WASHINGTON UTAH AND IDAHO BUSINESS SENTIMENT ACROSS THE DISTRICT REMAINED FLAT WITH MOST FIRMS EXPECTING NO BIG PICKUP ANYTIME SOON 9308050076 930805 LEISURE & ARTS BUSINESS BOOKSHELF A MULTIFACETED HISTORY BY RON CHERNOW AS OPEC HAS LEARNED TO ITS EVERLASTING SORROW GLOBAL CARTELS CAN FLOUT THE LAWS OF ECONOMIC GRAVITY FOR ONLY A SHORT TIME BEFORE THE MARKETPLACE TAKES REVENGE MEMBERS START TO BICKER SHARPELBOWED COMPETITORS EMERGE A SUDDEN SURPLUS SINKS THE SCHEME ALL THE MORE IMPRESSIVE THEN IS THE AERIAL WIZARDRY OF THE DE BEERS DIAMOND CARTEL AS PORTRAYED IN STEFAN KANFER'S CRITICAL STUDY THE LAST EMPIRE DE BEERS DIAMONDS AND THE WORLD FARRAR STRAUS GIROUX 373 PAGES 25 AS THE 1990S BEGAN THE SOUTH AFRICAN CONGLOMERATE MARKETED 90 OF THE WORLD'S DIAMONDS WHILE ITS FRATERNAL TWIN ANGLOAMERICAN SUPPLIED A SUBSTANTIAL PORTION OF ITS GOLD AS ONE MIGHT EXPECT IN AN INDUSTRY IN WHICH PEOPLE CAN MAKE A FORTUNE BY SCOOPING UP PAY DIRT THE HISTORY OF THE DIAMOND BUSINESS IS A HARSH AND BRUTAL AFFAIR FROM THE TIME CECIL RHODES CREATED DE BEERS CO IN 1880 THE MINING REGION AROUND KIMBERLY SWARMED WITH RASCALS THIEVES AND MEGALOMANIACS DIAMOND FEVER MADDENED MEN'S BRAINS AS RHODES CONFIDED TO A FRIEND YOU CANNOT UNDERSTAND WHAT AN AWFUL ENTICEMENT THE DIAMONDS ARE ANY DAY YOU MAY FIND A DIAMOND THAT WILL ASTONISH THE WORLD THE MOST FLAMBOYANT RANDLORD WAS RHODES WITH HIS GARGANTUAN LUST FOR LUCRE POWER AND PRETTY BOYS HE ANNEXED TERRITORIES THE WAY LESSER MORTALS BOUGHT VACANT LOTS AND REGRETTED THAT HE COULDN'T APPROPRIATE THE PLANETS FOR QUEEN VICTORIA CONVINCED THAT WHITE ANGLOSAXONS HAD TO EXTEND DOMINION OVER THEIR BENIGHTED BLACK BRETHREN HE BECAME PRIME MINISTER OF THE CAPE COLONY AND ITS LEADING BUSINESSMAN MR KANFER REVEALS THE RACIAL TRAGEDY SPAWNED BY THE PLANET'S RICHEST STOREHOUSE OF PRECIOUS STONES AS BOER LEADER PAUL KRUGER PROPHESIED AFTER GOLD'S DISCOVERY IN SOUTH AFRICA I TELL YOU TODAY THAT EVERY OUNCE OF GOLD TAKEN FROM THE BOWELS OF THE SOIL WILL YET HAVE TO BE WEIGHED UP WITH RIVERS OF TEARS AN EARLY VISITOR TO THE NASCENT INDUSTRY ANTHONY TROLLOPE NOTED THAT NATIVE WORKERS LIVED IN SQUALID COMPOUNDS MUCH LIKE INTERNMENT CAMPS THE DIAMOND BUSINESS WAS BEDEVILED BY AN INESCAPABLE PROBLEM WORKERS COULD STEAL GEMS BY HIDING THEM IN BODY ORIFICES OR EVEN BY FEEDING THEM TO ANIMALS MANY DIAMONDS THAT SPARKLED IN EUROPEAN SALONS HAD SAILED DOWN SOMEBODY'S ALIMENTARY CANAL THIS GUARANTEED GRISLY SECURITY METHODS NOT ONLY WERE BLACK WORKERS IMPRISONED IN COMPOUNDS AND CONVERTED INTO SOMETHING AKIN TO INDENTURED SERVANTS THEY WERE SUBJECTED TO DEGRADING PURGES AND STOOL CHECKS FOR GEMSTONES MR KANFER SHOWS SCANT INTEREST IN THE ACTUAL MECHANICS OF THE DIAMOND CARTEL THOUGH HE HAS GOOD BRIEF SECTIONS ON THE GEOPOLITICAL GAMESMANSHIP BY WHICH DE BEERS STAMPED OUT OR COOPTED COMPETITION IN THE SOVIET UNION ISRAEL AUSTRALIA AND EVEN BLACK AFRICAN STATES WILLING TO DISCARD IDEOLOGY TO COURT PESKY ADVERSARIES THE CARTEL SET UP OVERSEAS AFFILIATES TO ASSUAGE TENDER FEELINGS IN COUNTRIES CONCERNED ABOUT DEALING WITH A SOUTH AFRICAN FIRM MOSTLY MR KANFER USES THE DE BEERS STORY AS A KEYHOLE THROUGH WHICH TO VIEW SOUTH AFRICAN RACE RELATIONS IF THE BOOK LACKS ANALYTIC BITE OR PHILOSOPHIC HEFT IT IS LONG ON MORAL OUTRAGE THIS BECOMES ESPECIALLY CLEAR WHEN MR KANFER TURNS TO THE MOST CELEBRATED RANDLORDS THE OPPENHEIMER FAMILY BY THE 1920S SIR ERNEST OPPENHEIMER HAD A LOCK ON THE DIAMOND OUTPUT OF THE CONGO ANGOLA AND SOUTH WEST AFRICA WHICH HE PARLAYED INTO CONTROL OF DE BEERS AS MR KANFER TELLS IT SIR ERNEST ONLY FOUND RELIGION ON THE RACIAL ISSUE IN HIS 70S SHAKEN AFTER TOURING A BLACK SHANTYTOWN OUTSIDE JOHANNESBURG HE ARRANGED FOR CONSTRUCTION OF 15000 HOUSES THAT WOULD FORM THE CORE OF SOWETO MR KANFER RATHER MERCILESSLY ATTACKS SIR ERNEST'S SON HARRY WHO BECAME PRINCIPAL FINANCIAL SUPPORTER OF THE NEW PROGRESSIVE PARTY AFTER HIS UNITED PARTY DIVIDED OVER WHETHER TO EXTEND THE FRANCHISE TO NONWHITES THROUGH THE GROWTH OF A BLACK MIDDLE CLASS HARRY HOPED APARTHEID WOULD WITHER AWAY IN MOCKING HIS LIBERAL PRETENSIONS MR KANFER POINTS OUT THAT WHITE DE BEERS MINERS OFTEN EARNED 10 TIMES AS MUCH AS BLACKS AND THAT ONLY TWO OF 100 ANGLOAMERICAN MINING MANAGERS WERE BLACK THAT HARRY OPPENHEIMER HAD TO APPEASE BOTH BLACK ACTIVISTS AND DIEHARD APARTHEID ADVOCATES SEEMS PATENT BUT IN ASSUMING THAT HIS POSITIONS WERE MERELY SELFSERVING APOLOGETICS MR KANFER DOESN'T ADEQUATELY EXPLAIN WHY HE AROUSED SUCH VITRIOLIC ENMITY IN NATIONALIST CIRCLES HIS PORTRAIT OF A MAN TORN BETWEEN PRINCIPLE AND EXPEDIENCY COULD HAVE BEEN A RIVETING STUDY OF A CONCERNED WHITE SOUTH AFRICAN SITUATED AT THE PEAK OF THE POWER STRUCTURE INSTEAD IT BECOMES GLIB A PREY TO EASY JOURNALISTIC CYNICISM THE BOOK WOULD HAVE BENEFITED FROM STURDIER INTELLECTUAL SCAFFOLDING IT LACKS A THEMATIC STRUCTURE OR LARGER STATEMENT OF PURPOSE HAVING DISPENSED WITH FOOTNOTES BIBLIOGRAPHY AND ACKNOWLEDGMENTS MR KANFER OMITS THE TINIEST CLUE ABOUT THE GENESIS OF THE BOOK OR RESEARCH IN SO DOING HE HAS EITHER DONE A DISSERVICE TO EARLIER WRITERS OR TO HIMSELF WHATEVER THE ORIGINS OF HIS MATERIALS MR KANFER HAS SPUN A LIVELY OFTEN HORRIFYING TALE THAT PRESENTS SOUTH AFRICAN HISTORY FROM A SKEWED BUT REVEALING PERSPECTIVE MR CHERNOW'S HISTORY OF THE WARBURG BANKING FAMILY WILL BE PUBLISHED BY RANDOM HOUSE IN OCTOBER A REVIEW OF STEFAN KANFER'S THE LAST EMPIRE DE BEERS DIAMONDS AND THE WORLD FARRAR STRAUS GIROUX LAST THURSDAY QUESTIONS THE ABSENCE OF SOURCE MATERIALS THE FINISHED BOOK DOES IN FACT CONTAIN THE INFORMATION MISSING FROM THE GALLEY 9308050075 930805 COMMODITIES PRICES OF PRECIOUS METALS RETREAT AS FEARS EASE OVER TURMOIL IN THE EUROPEAN CURRENCY MARKET BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL PRECIOUSMETALS FUTURES PRICES FELL IN WHAT ANALYSTS SAY IS A CORRECTION OF THE RECENT UPWARD TREND BECAUSE OF THE CALMING OF CURRENCY TENSIONS IN EUROPE AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR DECEMBER DELIVERY WAS DOWN 430 AN OUNCE TO SETTLE AT 40330 WHILE THE ACTIVELY TRADED SEPTEMBER SILVER CONTRACT PLUNGED 12 CENTS TO 5265 AN OUNCE AT THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR OCTOBER DELIVERY TOOK ITS LEAD FROM GOLD RETREATING 510 TO 41960 AN OUNCE BASICALLY IT WAS A PROFITTAKING DAY WITH THE TENSION IN THE EUROPEAN CURRENCY RATE MECHANISM QUIETING DOWN FOR NOW SAID IAN MACDONALD CHIEF OF PRECIOUSMETALS TRADING AT CREDITSUISSE OVERALL THE UPTREND IS STILL INTACT YET ANALYSTS WARN THAT THE CORRECTION MAY NOT BE FINISHED SOCALLED TECHNICAL TRADERS SUCH AS COMMODITY FUNDS WHICH TRADE ON THE BASIS OF THEIR OWN MATHEMATICAL COMPUTATIONS MAY HELP TO PUSH THE PRICE OF GOLD DOWN FARTHER BEFORE IT REESTABLISHES ITS CLIMB THEY SAY I WOULD BE IN NO HURRY TO REINSTITUTE LONG POSITIONS OR WAGERS THAT GOLD FUTURES PRICES WILL RISE SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH I THINK THE SCENARIO IS LIKELY TO BE A NEARTERM CORRECTION WHICH COULD BE QUITE SUBSTANTIAL POSSIBLY FOLLOWED BY A RETEST OF THE HIGHS THE DECEMBER GOLD CONTRACT REACHED A HIGH OF 414 ON MONDAY IN PART BECAUSE OF TURMOIL IN CURRENCY MARKETS THAT THREATENED TO SCUTTLE THE CURRENCYCONTROL AGREEMENT BETWEEN EUROPEAN NATIONS BUT AN AGREEMENT TO ALLOW FREER FLUCTUATION OF THE CURRENCIES SEEMS TO HAVE ABATED THAT THREAT TYPICALLY UNCERTAINTY IN CURRENCY MARKETS EXERTS UPWARD PRESSURE ON THE PRICE OF GOLD WITHOUT THESE CURRENCY FEARS SUPPORT FOR PRECIOUSMETALS PRICES TEMPORARILY ERODED MOREOVER DEMAND FOR RAW GOLD FROM JEWELERS THE MAIN INDUSTRIAL USERS OF GOLD HAS DROPPED SUBSTANTIALLY THIS MONTH AUGUST IS A BAD MONTH FOR INDUSTRIAL DEMAND MR MACDONALD SAID THE JEWELRY INDUSTRY COMES TO A GRINDING HALT INVESTOR SYNDICATES FROM THE MIDDLE EAST THAT HELPED TO SPAWN THE UPWARD TREND IN PRECIOUSMETALS PRICES BY RETURNING TO THE MARKET IN FORCE EARLIER THIS YEAR NOW HAVE BACKED AWAY MR O'NEILL ADDED THEY ARE LIKELY TO RETURN AS BUYERS BUT NOT UNTIL THE CURRENT CORRECTION REACHES ITS BOTTOM HE SAID IN OTHER COMMODITY MARKETS YESTERDAY ENERGY PETROLEUM FUTURES TRADING WAS FAIRLY THIN ON THE NEW YORK MERCANTILE EXCHANGE YESTERDAY AND LITTLE NEWS SURFACED TO PUSH PRICES MUCH IN EITHER DIRECTION EVEN THE WEEKLY REPORT ON US INVENTORIES ISSUED LATE TUESDAY BY THE AMERICAN PETROLEUM INSTITUTE LENT LITTLE IMPETUS TO TRADING THE REPORT'S MOST NOTABLE FACTOR PERHAPS WAS A 13 SLIP IN REFINERY RUNS TO 95 WHICH APPARENTLY HELPED SUPPORT GASOLINE PRICES ANOTHER GASOLINE PRICE INFLUENCE WAS NEWS THAT MISSISSIPPI RIVER FLOODING HAS DISRUPTED THE DELIVERY OF REFINED PRODUCTS FROM A SHELL OIL CO REFINERY IN WOOD RIVER ILL SEPTEMBER GASOLINE ROSE 010 CENTS TO 5203 CENTS A GALLON CRUDE AND HEATING OIL LOST A LITTLE GROUND WITH SEPTEMBER CRUDE OIL FALLING FIVE CENTS A BARREL TO CLOSE AT 1780 AND HEATING OIL FOR SEPTEMBER DELIVERY SETTLING AT 5068 CENTS A GALLON DOWN 007 CENTS GRAINS & SOYBEANS PRICES OF SOYBEAN FUTURES SLIPPED AMID FORECASTS FOR SCATTERED RAIN IN THE PARCHED SOUTHEAST AND CONTINUED DRY WEATHER IN THE SOAKED MIDWEST IN LIGHT TRADING AT THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR AUGUST DELIVERY DROPPED NINE CENTS A BUSHEL TO SETTLE AT 697 A BUSHEL PRICES OF CORN AND WHEAT FUTURES CONTRACTS SETTLED SLIGHTLY LOWER GRAIN FUTURES CONTRACTS ARE GENERALLY EXPECTED TO TRADE IN A NARROW RANGE UNTIL THE FEDERAL GOVERNMENT UPDATES ITS MONTHLY HARVEST FORECASTS NEXT WEEK SEVERAL PRIVATE FORECASTING FIRMS ARE SCHEDULED TO REVISE THEIR FORECASTS FOR CLIENTS THIS WEEK SO FAR MOST PRIVATE ESTIMATES OF THE US CORN CROP RANGE BETWEEN 72 BILLION BUSHELS AND 78 BILLION BUSHELS DRIER WEATHER IN RECENT DAYS OVER THE MIDWEST IS HELPING FARM FIELDS IN STATES SUCH AS IOWA AND MINNESOTA TO RECOVER FROM NINE MONTHS OF EXCESSIVE PRECIPITATION HOWEVER METEOROLOGISTS ARE DIVIDED OVER HOW LONG THE DRY SPELL WILL LAST 9308050074 930805 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 5/16 HIGH 2 1/2 LOW 2 3/4 NEAR CLOSING BID 2 7/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 311 30 TO 59 DAYS 313 60 TO 89 DAYS 316 90 TO 119 DAYS 318 120 TO 153 DAYS 330 154 TO 179 DAYS 332 180 TO 229 DAYS 340 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 317 30 DAYS 320 60 DAYS 323 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 313 THREE MONTHS 335 SIX MONTHS BANKERS ACCEPTANCES 307 30 DAYS 308 60 DAYS 310 90 DAYS 313 120 DAYS 325 150 DAYS 328 180 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 670 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 702 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 7 60 DAYS 710 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 9308050073 930805 BUSINESS BRIEF CONTINENTAL CORP SECONDQUARTER NET INCOME OF 718 MILLION IS REPORTED CONTINENTAL CORP NEW YORK REPORTED SECONDQUARTER NET INCOME OF 718 MILLION OR 129 A SHARE MORE THAN DOUBLE THE YEAREARLIER NET OF 32 MILLION OR 57 CENTS A SHARE THE INSURANCE COMPANY SAID RESULTS WERE AIDED BY AN INCREASE IN CAPITAL GAINS AND IMPROVED UNDERWRITING RESULTS PARTLY REFLECTING LOWER CATASTROPHIC LOSSES NET WRITTEN PREMIUMS ROSE TO 12 BILLION FROM 11 BILLION IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY CONTINENTAL FELL 50 CENTS TO 3350 9308050072 930805 WHO'S NEWS INTEL FOUNDER ROCK QUITS APPLE BOARD CITING PERCEPTIONS OF CONFLICT OF INTEREST BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO IN A MOVE UNDERSCORING APPLE COMPUTER CO'S INCREASINGLY DIRECT COMPETITION WITH CHIPMAKING GIANT INTEL CORP VENTURE CAPITALIST ARTHUR ROCK SAID HE ELECTED TO LEAVE APPLE'S BOARD TO KEEP HIS SEAT ON INTEL'S BOARD APPLE ANNOUNCED MR ROCK'S IMMEDIATE RESIGNATION FROM ITS SEVENMEMBER BOARD SAYING THE MOVE WAS MADE TO AVOID ANY PERCEPTION OF CONFLICT OF INTEREST ARISING FROM HIS OTHER AFFILIATIONS IN THE COMPUTER INDUSTRY APPLE ISN'T IN THE CHIP BUSINESS BUT LAST YEAR IT FORMED AN ALLIANCE WITH MOTOROLA INC AND INTERNATIONAL BUSINESS MACHINES CORP ONE GOAL OF WHICH IS TO DEVELOP A NEW CHIP THE POWERPC THAT WOULD COMPETE WITH INTEL'S PENTIUM MICROPROCESSOR APPLE'S CHAIRMAN JOHN SCULLEY IN A STATEMENT RELEASED BY THE CUPERTINO CALIF COMPUTER MAKER SAID WE UNDERSTAND HIS DESIRE TO AVOID A PERCEIVED CONFLICT OF INTEREST AND HE HAS OUR THANKS AND BEST WISHES MR ROCK SAID IN AN INTERVIEW THAT HE DECIDED TO STEP DOWN FROM APPLE'S BOARD AFTER 13 YEARS BECAUSE OF RECENT NEWS STORIES AND ADVERTISEMENTS POINTING TO THE COMING CONFLICT BETWEEN APPLE AND INTELBASED COMPUTER MAKERS HE SAID SEVERAL PEOPLE HAD RAISED THE QUESTION OF A POTENTIAL FOR A CONFLICT OF INTEREST BECAUSE HE WAS SITTING ON BOTH BOARDS I JUST THOUGHT IT WAS TOO MUCH HEAT AND I DON'T NEED THAT AT THIS STAGE IN MY LIFE SAID THE 66YEAROLD FINANCIER MR ROCK SAID IT TOOK HIM ABOUT 10 DAYS TO MAKE UP HIS MIND SINCE I WAS A FOUNDER OF INTEL AND HAVE BEEN ON ITS BOARD THE LONGEST I CHOSE TO RESIGN FROM APPLE'S BOARD HE SAID THE APPLE BOARD RECENTLY ACCEPTED MR SCULLEY'S RESIGNATION AS CHIEF EXECUTIVE OFFICER SHORTLY BEFORE THE COMPANY ANNOUNCED A HUGE QUARTERLY LOSS CAUSED BY A RESTRUCTURING CHARGE AT THE TIME MR ROCK SAID THE RESIGNATION WAS MR SCULLEY'S IDEA ALTHOUGH MR SCULLEY LATER INDICATED HE WAS SURPRISED HOW SWIFTLY THE BOARD IMPLEMENTED IT MR ROCK DECLINED TO COMMENT ON WHETHER MR SCULLEY HAD EXPECTED TO STEP DOWN IMMEDIATELY IN ADDITION TO HELPING FOUND INTEL MR ROCK IS CONSIDERED ONE OF THE HIGHTECH INDUSTRY'S MOST SUCCESSFUL VENTURE CAPITALISTS HIS SUCCESSES INCLUDE SCIENTIFIC DATA SYSTEMS INC IN WHICH HE AND HIS PARTNERS PARLAYED AN INITIAL 257000 INVESTMENT IN THE 1960S INTO A 100 MILLION PROFIT AFTER THE COMPANY WAS SOLD FOR NEARLY 1 BILLION TO XEROX CORP IN 1969 MR ROCK ALSO INVESTED 57600 IN APPLE WHICH RETURNED THE INVESTMENT AT LEAST 300FOLD 9308050071 930805 BUSINESS BRIEF GERBER PRODUCTS CO COMPANY LAYS PLANS TO COPE WITH FALLING US BIRTH RATE GERBER PRODUCTS CO FACING A DECLINING US BIRTH RATE PLANS TO CONCENTRATE ON EXPANDING BABY FOOD SALES ABROAD AND BOOSTING NONFOOD BUSINESSES AT HOME THE COMPANY TOLD SHAREHOLDERS FOLLOWING A DISAPPOINTING FISCAL 1993 YOU'RE GOING TO SEE A YEAR OF INVESTMENT CHAIRMAN AND CHIEF EXECUTIVE OFFICER ALFRED A PIERGALLINI FORECAST WE EXPECT SLOW STEADY INCREMENTAL GROWTH FOR GERBER HE SAID ADDING THE PAYOFF WILL COME IN FISCAL 1995 GERBER BASED IN FREMONT MICH PLANS TO EXPAND ITS LINE OF GERBER GRADUATES FOODS FOR TODDLERS AND ANTICIPATES RETAIL SALES OF ABOUT 65 MILLION THIS YEAR MR PIERGALLINI SAID LAST YEAR'S SALES WERE ABOUT 40 MILLION THE COMPANY SAID IT IS SPENDING THE 100 MILLION IN SALE PROCEEDS FROM ITS BUSTER BROWN APPAREL UNIT ON STOCK REPURCHASES 9308050070 930805 CITIZENS BANCSHARES PURCHASE SALINEVILLE OHIO CITIZENS BANCSHARES INC SAID IT AGREED TO BUY THE FIRESTONE BANK OF LISBON OHIO IN A STOCKSWAP VALUED AT 65 MILLION TO 72 MILLION BASED ON YESTERDAY'S CLOSING PRICE OF 2750 A SHARE UNDER TERMS CITIZENS WOULD SWAP 095 TO 105 SHARES OF ITS COMMON STOCK FOR SINGLE SHARES OF FIRESTONE THE FINAL RATIO WILL DEPEND ON THE CLOSING PRICE OF CITIZENS COMMON DURING A CERTAIN PERIOD OF TIME BEFORE THE CLOSING CASH WILL BE PAID IN LIEU OF FRACTIONAL SHARES FIRESTONE HAS FOUR BRANCHES AND ABOUT 80 MILLION IN ASSETS CITIZENS HAS 21 BRANCHES AND ABOUT 520 MILLION IN ASSETS 9308050069 930805 INTERNATIONAL BRIEF REPSOL SA SPANISH OIL COMPANY POSTS 63 RISE IN FIRSTHALF NET SPAIN'S STATERUN OIL AND GAS COMPANY REPSOL SA SAID GROUP PROFIT ROSE 63 TO 4316 BILLION PESETAS 3099 MILLION IN THE FIRST HALF FROM 4060 BILLION PESETAS REPSOL NOTED THAT THE STRONG RESULTS CAME DESPITE DEEPENING ECONOMIC RECESSION IN SPAIN THE HIGHER PROFIT WAS A RESULT OF SOLID INVESTMENTS COST CONTROLS AND THE WEAKENING OF THE SPANISH PESETA REPSOL SAID THE OIL COMPANY SAID THAT WHILE THE PESETA'S DECLINE FORCED UP GASOLINE PRICES IN THE FIRST HALF IT ALSO NARROWED REFINERY EXPLORATION AND CHEMICAL COMMERCIAL MARGINS DENOMINATED IN PESETAS REPSOL SAID IT INCURRED ONETIME COSTS OF SEVEN BILLION PESETAS IN THE FIRST HALF BECAUSE OF THE INITIAL EFFECTS OF THE DEVALUATION OF THE PESETA THE TEMPORARY SUSPENSION OF PETROCHEMICAL OPERATIONS AT ITS PUERTOLLANO COMPLEX AND WORK STOPPAGES AND AN EXPLOSION AT ITS BILBAO REFINERY 9308050068 930805 ECONOMY US VEHICLE SALES RISE FROM YEAR AGO BUT TRAIL RATE OF THE PREVIOUS 30 DAYS BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE SELLING PACE OF NORTH AMERICANBUILT CARS AND LIGHT TRUCKS PICKED UP SLIGHTLY IN LATE JULY OVER THE YEAREARLIER PERIOD BUT TRAILED THE RATE OF THE PREVIOUS 30 DAYS VEHICLE SHORTAGES ACTED AS A SLIGHT DRAG ON LATEJULY CAR SALES IN THE FINAL 10 DAYS OF THE MONTH NORTH AMERICANBUILT CARS AND LIGHT TRUCKS SOLD AT A SEASONALLY ADJUSTED ANNUAL RATE OF 114 MILLION UNITS UP FROM 105 MILLION VEHICLES IN THE YEAREARLIER PERIOD THE AVERAGE ANNUAL SELLING PACE IN THE PRECEDING 30 DAYS HAD BEEN A STRONG 12 MILLION UNITS OVERALL AMERICANS BOUGHT 425454 NORTH AMERICANBUILT CARS AND LIGHT TRUCKS IN THE JULY 2130 PERIOD UP 62 FROM 400524 VEHICLES PURCHASED IN THE YEARAGO PERIOD TENDAY FIGURES FOR IMPORTED VEHICLES AREN'T AVAILABLE AUTO DEALERS AND INDUSTRY EXPERTS SAID SHORTAGES OF CERTAIN VEHICLES TOOK SOME OF THE STEAM OUT OF SALES SEVERAL AUTO MAKERS CLOSED ASSEMBLY PLANTS IN JULY TO RETOOL FACTORIES FOR THE NEW MODEL YEAR WHICH BEGINS OCT 1 CONSEQUENTLY CAR BUYERS MAY HAVE HAD DIFFICULTY FINDING BARGAINS ON CERTAIN POPULAR MODELS IT'S A SUPPLY PROBLEM SAID STEPHEN GIRSKY PAINEWEBBER INC'S AUTO ANALYST THE STRONG MARKET MAY HAVE SURPRISED THE AUTO COMPANIES IT BODES WELL FOR MOVING '93S OFF THE LOT SEVERAL AUTO MAKERS STARTED JULY WITH LEAN INVENTORIES CHRYSLER CORP HAD JUST ENOUGH CARS ON HAND AT THE END OF JUNE TO LAST 46 DAYS AND GENERAL MOTORS CORP HAD A 50DAY CAR SUPPLY SUCH INVENTORIES WERE WELL BELOW THE 60 TO 65DAY SUPPLY THAT'S CONSIDERED IDEAL FORD MOTOR CO'S STOCKS WERE AT THE 65DAY LEVEL FOR ALL OF JULY AUTO MAKERS SOLD A TOTAL OF 1242773 NORTH AMERICANBUILT AND IMPORTED CARS AND LIGHT TRUCKS UP 92 FROM 1137703 VEHICLES SOLD IN THE YEAREARLIER PERIOD THE SEASONALLY ADJUSTED ANNUAL SELLING RATE FOR THE ENTIRE MONTH OF JULY INCLUDING IMPORTED VEHICLES WAS 134 MILLION UP FROM A WEAK PACE OF 12 MILLION IN THE YEAREARLIER MONTH CHRYSLER GRABBED A MUCH BIGGER SHARE OF THE US VEHICLE MARKET IN JULY JUMPING 18 PERCENTAGE POINTS TO 134 THANKS TO ITS STABLE OF SOME OF AMERICA'S HOTTEST VEHICLES INCLUDING THE NEW LH CARS ITS SEGMENTLEADING MINIVANS AND THE POPULAR JEEP GRAND CHEROKEE CHRYSLER'S JULY VEHICLE SALES SPURTED 26 TO 165951 UNITS GM'S MARKET SHARE SLIPPED 15 PERCENTAGE POINTS IN JULY TO 342 COMPARED WITH A YEAR EARLIER REFLECTING A STRATEGIC DECISION TO SELL FEWER VEHICLES AT STEEP DISCOUNTS TO DAILY RENTAL FLEETS GM'S MARKET SHARE HAS BEEN DOWN MUCH OF THE YEAR NONETHELESS GM'S VEHICLE SALES IN JULY ROSE 47 RIDING ON AN 88 JUMP IN SALES OF ITS NORTH AMERICANBUILT LIGHT TRUCKS FORD MAINTAINED ITS MARKET SHARE IN JULY AT 249 ALMOST UNCHANGED FROM A YEAR EARLIER ITS TOTAL VEHICLE SALES JUMPED 103 IN JULY FROM A YEAR EARLIER THANKS TO A 24 SURGE IN TRUCK SALES ITS SALES OF NORTH AMERICANBUILT CARS WERE FLAT WITH A YEAR EARLIER BUT THE JAPANESE AUTO MAKERS WHICH HAD BEEN LOSING MARKET SHARE THIS YEAR HELD THEIR GROUND IN JULY AT A COMBINED 246 NISSAN MOTOR CORP HOWEVER ADDED 12 PERCENTAGE POINTS TO ITS MARKET SHARE BOOSTING THE JULY FIGURE TO 52 NISSAN'S VEHICLE SALES IN JULY SURGED 439 FROM A YEAR EARLIER REFLECTING POPULAR NEW PRODUCTS AND FOCUSED MARKETING TOYOTA MOTOR CO'S VEHICLE SALES CLIMBED 5 IN JULY HONDA MOTOR CO'S ROSE 03 AND MAZDA MOTOR CORP'S 114 MEANWHILE SEVERAL EUROPEAN AUTO MAKERS POSTED BRISK SALES IN JULY FORD'S JAGUAR BRITISH LUXURYCAR UNIT SAID SALES MORE THAN DOUBLED LAST MONTH TO 1083 IN BRITAIN JAGUAR IS HOPING TO BOOK A 20 SALES INCREASE IN AUGUST WHICH IS THE BUSIEST MONTH OF THE YEAR DAIMLERBENZ AG'S MERCEDESBENZ SOLD 6669 VEHICLES IN THE US UP 462 FROM A YEAR AGO WHILE BAYERISCHE MOTOREN WERKE AG SOLD 6710 VEHICLES IN THE US UP 104 FROM LAST YEAR BUT VOLKSWAGEN AG SAW ITS SALES IN THE US PLUNGE 462 IN JULY MEXICO FOR SALE IN THE US TOURISTDELIVERY SALES OF IMPORTED MODELS A YEAR EARLIER PERCENTAGE DIFFERENCES BASED ON DAILY SALES RATE RATHER THAN SALES VOLUME 9308050067 930805 BOND GROUP MOVES TO CURB POLITICAL GIFTS BY CHRISTI HARLAN AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL THE MUNICIPAL SECURITIES RULEMAKING BOARD UNDER PRESSURE FROM CONGRESS AND THE SECURITIES AND EXCHANGE COMMISSION PROPOSED DISCLOSURE RULES ON MUNICIPAL BOND DEALERS' POLITICAL CONTRIBUTIONS AND ON THE SECURITIES THEMSELVES THE MSRB'S POLITICAL CONTRIBUTION RULE WOULD ALLOW A PROSPECTIVE UNDERWRITER TO CONTRIBUTE FREELY TO POLITICIANS AS LONG AS THE DONATIONS AREN'T INTENDED TO SWAY THE OFFICIALS TO AWARD WORK ON A BOND ISSUE TO THAT UNDERWRITER SOME REFORMMINDED POLITICIANS AND REGULATORS HAD WANTED AN OUTRIGHT BAN ON POLITICAL CONTRIBUTIONS BY DEALERS BUT THE PROPOSAL MAY EFFECTIVELY INHIBIT CONTRIBUTIONS WITH ITS ADDITIONAL REQUIREMENT THAT UNDERWRITERS REPORT ALL POLITICAL CONTRIBUTIONS MADE BOTH TWO YEARS BEFORE AND TWO YEARS AFTER A BOND ISSUE IS AWARDED THE DISCLOSURE RULE IS DESIGNED TO ADDRESS THE DEARTH OF INFORMATION AVAILABLE TO BUYERS OF MUNICIPAL BONDS IN THE SECONDARY MARKET THE RULE WOULD REQUIRE DEALERS TO DECLARE WHETHER THE ISSUERS SUCH AS CITIES AND SCHOOL DISTRICTS WOULD MAKE INFORMATION THAT COULD AFFECT THE VALUE OF THE BONDS AVAILABLE TO INVESTORS AFTER THE INITIAL OFFERING THE RULE DOESN'T REQUIRE UNDERWRITERS OR ISSUERS TO PROVIDE THE INFORMATION TO INVESTORS JUST SAY WHETHER IT'S AVAILABLE THE PROPOSALS ANNOUNCED IN WASHINGTON AREN'T NEARLY AS BROAD AS SOME CRITICS OF THE CURRENT SECURITIES MARKET HAD WANTED CRITICISM HAS ESCALATED RECENTLY IN THE WAKE OF REPORTS OF QUESTIONABLE PRACTICES IN THE MUNICIPAL BOND BUSINESS NEVERTHELESS RICHARD ROBERTS THE SEC'S MOST OUTSPOKEN MEMBER ON MUNICIPAL BONDS SAID THE PROPOSALS APPEAR TO BE AN APPROPRIATE REGULATORY RESPONSE DESIGNED TO DIMINISH THE GROWTH OF PROBLEMS IN THE POLITICAL ARENA AND IN DISCLOSING INFORMATION TO INVESTORS BUT HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ SAID THE MSRB'S EFFORT DOESN'T SET A HIGH ENOUGH STANDARD THE TEXAS DEMOCRAT IS COSPONSORING LEGISLATION THAT WOULD IMPOSE FEDERAL SECURITIES LAWS ON STATE AND LOCAL BOND ISSUES AND REQUIRE DISCLOSURE OF ALL CONTRIBUTIONS THE BOARD'S APPROACH HE SAID STILL LEAVES ROOM FOR BOND COUNSEL AND OTHERS TO GREASE THE SKIDS FOR BOND HOUSES BY MAKING POLITICAL CONTRIBUTIONS AND TO DO SO IN THE DARK IN MANY CASES DESPITE THE SHORTCOMINGS THE PROPOSALS REPRESENT THE FIRST MAJOR EFFORT TO IMPOSE SOME STRICTURES ON THE MUNICIPAL BOND MARKET IN ALMOST 18 YEARS THE BOARD'S PREVIOUS ENDEAVOR IN 1975 BACKFIRED AND LED TO CONGRESSIONAL ACTION FORBIDDING THE MSRB AND THE SEC FROM REQUIRING ISSUERS TO PROVIDE ANY APPLICATION REPORT DOCUMENT OR INFORMATION ABOUT THEIR SECURITIES AS A RESULT THE ONUS OF NEW MARKET REGULATIONS HAS TENDED TO FALL ON THE SHOULDERS OF THE UNDERWRITERS WHICH THE SEC AND THE MSRB CAN REGULATE UNDERWRITERS UNDERSTANDABLY RESENT THE BURDEN BUT ATTENTION TO THE MUNICIPAL BOND BUSINESS PARTICULARLY CONCERNING CAMPAIGN CONTRIBUTIONS HAS INTENSIFIED SINCE THE SPRING AND THE START OF A FEDERAL INVESTIGATION INTO THE SALE OF 29 BILLION OF NEW JERSEY TURNPIKE BONDS THE US ATTORNEY'S OFFICE IN MANHATTAN AND THE SEC ARE LOOKING INTO ALLEGATIONS THAT MERRILL LYNCH & CO MADE ILLEGAL PAYMENTS TO A FIRM WITH POLITICAL AND FINANCIAL TIES TO A FORMER TOP AIDE TO NEW JERSEY GOV JIM FLORIO THE FIRM THEN RECEIVED PART OF THE STATE'S TURNPIKE BOND BUSINESS SINCE THAT TIME INQUIRIES HAVE BEGUN INTO FEESPLITTING AND FEESHARING ARRANGEMENTS FOR OTHER MUNICIPAL BOND DEALS IN MASSACHUSETTS AND LOUISIANA THOUGH MANY UNDERWRITERS AGREE SOMETHING SHOULD BE DONE ABOUT POLITICAL CONTRIBUTIONS THEIR REACTIONS TO THE MSRB PROPOSALS WERE MIXED WITH SOME CALLING THE EFFORT AN OVERREACTION GERALD P MCBRIDE EXECUTIVE VICE PRESIDENT OF THE TAXEXEMPT DIVISION AT PRUDENTIAL INSURANCE CO OF AMERICA'S PRUDENTIAL SECURITIES INC UNIT AND AN OFFICER IN THE INDUSTRY'S TRADE GROUP THE PUBLIC SECURITIES ASSOCIATION SAID THE MSRB ANNOUNCEMENT GIVES NO CLEAR VISION I'M SURE THE INTENTION OF THE MSRB BOARD IS TO TRY TO SOLVE THE PROBLEMS THAT THIS INDUSTRY FACES NOW HE SAID BUT THIS PROPOSAL DOESN'T TELL ME HOW THAT'S GOING TO BE DONE IT'S JUST A CALL TO DEBATE BUT NAPOLEON BRANDFORD III VICE CHAIRMAN OF GRIGSBY BRANDFORD & CO A SAN FRANCISCO UNDERWRITING FIRM SAID HE WAS ECSTATIC HIS FIRM HE SAID IS ONE OF SEVERAL THAT HAS CONTRIBUTED TO POLITICIANS UNDER THE PERCEPTION OF PRESSURE IN THE PAST MINORITY FIRMS SUCH AS GRIGSBY BRANDFORD HAVE TRADITIONALLY GIVEN A GREATER PERCENTAGE OF THEIR REVENUE IN CAMPAIGN CONTRIBUTIONS THAN THE MAJOR FIRMS EVEN THOUGH THE CONTRIBUTIONS TO MY KNOWLEDGE HAVE NEVER INFLUENCED ANYONE SAID MR BRANDFORD THEY ONLY QUALIFIED YOU TO BE CONSIDERED FOR THE UNDERWRITING TEAM BUT WHETHER MR BRANDFORD REMAINS ECSTATIC WHEN THE FINAL RULES ARE ISSUED CAN'T BE PREDICTED THE MSRB PLANS TO COLLECT COMMENTS ON ITS PROPOSALS THEN OFFER DRAFTS TO THE SEC THE SEC IN TURN COULD PROPOSE REGULATIONS COLLECT COMMENTS AND THEN APPROVE THE FINAL RULES MEANWHILE THE SEC THE MSRB AND THE THREE FEDERAL BANKING REGULATORS ARE PREPARING THEIR OWN ASSESSMENTS OF THE MUNICIPAL BOND BUSINESS FOR PRESENTATION TO THE HOUSE ENERGY AND COMMERCE COMMITTEE AND HEARINGS BY THE SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE COULD BEGIN AS EARLY AS NEXT MONTH IN THE END CONGRESS COULD BE THE FIRST TO GET MUNICIPALBOND REFORM ON THE BOOKS 9308050066 930805 BUSINESS BRIEF MUELLER INDUSTRIES INC OFFERING IS SLATED OF SHARES HELD BY QUANTUM FUND NV MUELLER INDUSTRIES INC SAID IT HAS BEGUN A SECONDARY PUBLIC OFFERING OF 325 MILLION SHARES HELD BY INVESTOR GEORGE SOROS'S QUANTUM FUND NV THE WICHITA KAN COPPERTUBE MANUFACTURER SAID 26 MILLION SHARES OF THE STOCK WILL BE SOLD IN THE US WITH THE BALANCE OFFERED OUTSIDE THE COUNTRY NEWS OF MR SOROS'S PROPOSED OFFERING SENT MUELLER'S STOCK SHARPLY LOWER LAST MONTH AS ANALYSTS FEARED AN ACQUISITION WAS IMMINENT IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY THE ISSUE FELL 375 CENTS OR 13 TO CLOSE AT 28875 AFTER THE SALE QUANTUM WILL CONTINUE TO OWN ABOUT 15 MILLION SHARES OR 15 OF MUELLER'S COMMON STOCK MUELLER WILL RECEIVE NONE OF THE PROCEEDS OF THE OFFERING TO BE MANAGED BY A GROUP LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP 9308050065 930805 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY PREDICTED ECONOMIC OUTPUT IN THE 12COUNTRY TRADE BLOC WILL CONTRACT 04 THIS YEAR THE FIRST DROP SINCE 1975 AND REITERATED THAT UNEMPLOYMENT WILL SURGE TO AN ALLTIME HIGH IN ITS LATEST TRENDS SURVEY THE EC FOUND NO CONCRETE SIGNS OF RECOVERY FROM THE RECESSION GRIPPING MANY MEMBER STATES EC LEADERS HAVE EMBRACED A LONGTERM STRATEGY OF INVESTMENT AND TRAINING BUT HAVE LITTLE CASH TO PULL IT OFF EC NATIONS ALSO ARE HESITANT TO TAMPER WITH SOCIAL PROGRAMS THAT HAVE DRIVEN UP WAGE COSTS AND HINDERED INVESTMENT IN EUROPE NOW 174 MILLION PEOPLE OR 103 OF THE EC WORK FORCE ARE JOBLESS THE 12 UNEMPLOYMENT RATE PROJECTED BY MID1994 WOULD BREAK THE 1985 RECORD OF 108 THE EC BUDGET DEFICIT OF 625 OF GROSS DOMESTIC PRODUCT EASILY SURPASSES THE 1982 HIGH OF 52 AND HAMPERS JOB CREATION RUSSIA'S TRANSFER OF STATE INDUSTRY TO PRIVATE OWNERSHIP HAS MOVED RAPIDLY OFFICIALS SAID SINCE DECEMBER 2621 BIG FACTORIES HAVE BEEN AUCTIONED OFF REPRESENTING 12 OF THE 22000 BIG ENTERPRISES EACH WITH AT LEAST 1000 EMPLOYEES DESIGNATED FOR SALE UNDER PRESIDENT BORIS YELTSIN'S MARKET REFORM PROGRAM MR YELTSIN SAID OF THE SELLOFFS NO ONE WILL STOP US NOT EVEN THE RECENT DECISIONS OF THE SUPREME SOVIET ON BRAKING PRIVATIZATION CHINA INTENDS TO LAUNCH FIVE SATELLITES BY OCTOBER 1994 AS THE COUNTRY'S SPACE INDUSTRY SEEKS TO EXPAND ITS INTERNATIONAL BUSINESS MISSIONS FOR THREE OF THE SATELLITES INCLUDE METEOROLOGY FOR WEATHER MONITORING AND MILITARY PURPOSES TELECOMMUNICATIONS IMPROVEMENTS AND SCIENTIFIC EXPERIMENTS THE OTHER TWO WILL BE RECOVERABLE SATELLITES USED MAINLY FOR PHOTOGRAPHIC AND SCIENTIFIC MISSIONS IN ITS 25YEAR HISTORY THE CHINESE ACADEMY OF SPACE TECHNOLOGY HAS LOFTED 33 SATELLITES TAIWAN RECAPTURED ITS POSITION AS THE TOP FOREIGN INVESTOR IN VIETNAM AFTER BEING OVERTAKEN BY HONG KONG LAST MONTH TAIWAN INVESTORS HAVE SUNK 133 BILLION INTO VIETNAM SINCE IT OPENED TO PROJECTS FROM ABROAD FIVE YEARS AGO VIETNAM HAS LICENSED 724 FOREIGN PROJECTS VALUED AT 632 BILLION TOTAL STILL MANY FOREIGN FIRMS CONSIDER VIETNAM TOO RISKY UNTIL A BODY OF BUSINESS LAW IS ESTABLISHED CHINA'S RULERS VOWED TO PUNISH SEVERELY ANY CHINESE JOURNALISTS CAUGHT ACCEPTING MONEY OR COMPANY STOCK IN RETURN FOR FAVORABLE COVERAGE STATE RADIO SAID COMMUNIST PARTY OFFICIALS FORBADE REPORTERS FROM TAKING BRIBES FROM THEIR SOURCES AND ORDERED A STRICT DIVISION BETWEEN ADVERTISING AND NEWS REPORTING AT CHINESE NEWS CONFERENCES RED ENVELOPES STUFFED WITH CASH AND EXPENSIVE GIFTS ARE COMMONLY HANDED OUT WHILE THERE IS A PROBLEM WITH ONLY A FEW PEOPLE THE HARM THEY DO IS VERY GREAT BEIJING'S PROPAGANDA CHIEF WAS QUOTED AS SAYING CHINA'S NEWSPAPERS ONCE DRAB SHEETS FILLED WITH LEADERS' THOUGHTS HAVE LIVENED UP UNDER ECONOMIC REFORMS AND COMPANIES OFTEN TRY TO BUY GOOD COVERAGE IN A RECENT INCIDENT IN WHICH AN ILLEGAL INVESTMENT FIRM WAS SAID TO HAVE PLIED JOURNALISTS WITH BONDS AND OTHER BRIBES A 175 MILLION PYRAMID SCHEME WAS LAUDED IN THE OFFICIAL PRESS BEFORE IT COLLAPSED FRANCE ONE OF THE WORLD'S LEADING TOURIST DESTINATIONS IS SPLASHING MESSAGES IN FIVE LANGUAGES ON BILLBOARDS IN TRAIN STATIONS AIRPORTS AND CAMPGROUNDS TO PROMOTE THE USE OF CONDOMS BY VISITORS TO THE COUNTRY WHICH HAS ONE OF EUROPE'S HIGHEST INCIDENCES OF AIDS RUSSIA RECORDED 4000 DIPHTHERIA CASES IN THE FIRST HALF EQUALING THE TOTAL FOR ALL OF 1992 THE JUMP WAS BLAMED ON A VACCINE SHORTAGE AND PUBLIC RELUCTANCE TO BE VACCINATED 9308050064 930805 INNOVATIVE WAYS THERMO ELECTRON USES AN UNUSUAL STRATEGY TO CREATE PRODUCTS IT SPINS OUT' NEW COMPANIES TO THE PUBLIC BUT RETAINS A MAJORITY OF THE STOCKS FOR SALE CORE TECHNOLOGIES BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL SAN DIEGO POWERFUL SPACE LASERS ONCE SLICED LIKE SWORDS THROUGH THE NIGHT SKY ABOVE A TOPSECRET STAR WARS LAB HERE NOW THE LAB'S MOST CLOSELY GUARDED RESEARCH CONCERNS REMOVAL OF UNWANTED BODY HAIR IN WHAT RANKS AMONG THE STRANGEST CASES OF DEFENSETECHNOLOGY CONVERSION THIS REAGANERA RESEARCH LAB HAS SHUT DOWN ITS BIG MILITARY LASER AND IS FOCUSING ON AMONG OTHER THINGS DEVELOPING A PAINLESS LASER ALTERNATIVE TO ELECTROLYSIS IT'S A BILLIONDOLLAR BUSINESS EASILY CLAIMS JACK DAUGHERTY THE LAB'S TECHNICAL DIRECTOR IT'S ALSO A TOUGH CHALLENGE FOR THERMO ELECTRON CORP WHICH BOUGHT THE LAB FOUR YEARS AGO BUT THERMO MAY BE UNUSUALLY WELLEQUIPPED TO HANDLE SUCH PROBLEMS IT HAS DEVELOPED A RADICAL FORMULA FOR CREATING NEW PRODUCTS AND FINDING ENTREPRENEURS IN ITS RANKS ONE THAT INTRIGUES SOME HIGHPROFILE COMPANIES STRATEGISTS FROM INTERNATIONAL BUSINESS MACHINES CORP WESTINGHOUSE ELECTRIC CORP KMART CORP AND BRITISH PETROLEUM CO HAVE TROOPED TO ITS WALTHAM MASS HEADQUARTERS TO SEE HOW IT'S DONE WHAT FUELS THERMO'S FERTILE HOTHOUSE FOR NEW BUSINESSES IS ITS NOVEL EQUITY STRUCTURE IT IS DESIGNED LIKE A SOLAR SYSTEM WITH PLANETS ORBITING A CORE WHEN A MANAGER OR ENGINEER INVENTS SOMETHING OR FINDS A NEW MARKET FOR A TECHNOLOGY THERMO OFTEN CREATES A WHOLE NEW COMPANY IN A STRATEGY IT CALLS A SPINOUT THIS STRATEGY DIFFERS FROM THE WIDELY USED SPINOFF IN TWO WAYS THERMO ALWAYS RETAINS A MAJORITY OF THE EQUITY IN THE NEW COMPANY AND IN CONTRAST TO A SPINOFF DISTRIBUTION OF STOCK TO EXISTING SHAREHOLDERS IT OFFERS NEW STOCK TO THE PUBLIC THEO MELASKYRIAZI THERMO'S TREASURER NOTES ANOTHER DIFFERENCE WE DON'T SELL POOR PERFORMERS THE DOGS WE SELL OUR CORE TECHNOLOGIES AND THERMO DOESN'T TAKE THE PROCEEDS OF A SUBSIDIARY'S STOCK SALE FOR ITSELF AS OTHER COMPANIES DO IT LETS THE UNITS KEEP THE CASH THIS SPINOUT MANEUVER DEVISED IN 1983 HAS SO FAR ALLOWED THERMO ELECTRON TO RETAIN ITS ENTREPRENEURIAL SPARK WHILE ACCELERATING THE GROWTH OF NEW BUSINESSES TOM PETERS AN AUTHOR AND CONSULTANT WRITES IN HIS BOOK LIBERATION MANAGEMENT TODAY THERMO IS 15 DISTINCT COMPANIES INCLUDING EIGHT THAT ARE PUBLICLY HELD THERMOTREX CORP THE OFFSPRING THAT RUNS THE DEFENSE LAB RECENTLY PRODUCED A CHILD OF ITS OWN THERMOLASE INC TO WORK ON THE HAIRREMOVAL IDEA ONE OF OUR GRANDCHILDREN SAYS GEORGE HATSOPOLOUS THERMO'S 66YEAROLD FOUNDER AND CHIEF EXECUTIVE WHOSE FIRST BUSINESS WAS A BOYHOOD VENTURE BUILDING FORBIDDEN RADIO RECEIVERS IN NAZIOCCUPIED GREECE AS A STUDENT AT MASSACHUSETTS INSTITUTE OF TECHNOLOGY IN THE 1950S DR HATSOPOLOUS GAINED INTERNATIONAL ACCLAIM FOR INVENTING A WAY TO CONVERT HEAT DIRECTLY INTO ELECTRICITY THERMO IS STILL TRYING TO FIGURE OUT HOW TO MAKE MONEY FROM IT OTHER TECHNOLOGIES HAVE BEEN MORE SUCCESSFUL THE SPINOUTS AND SCORES OF ACQUISITIONS HAVE TRANSFORMED THERMO FROM A SMALL LABINSTRUMENT MAKER INTO AN ASTONISHINGLY DIVERSIFIED TECHNOLOGY FACTORY ALTHOUGH INSTRUMENTS STILL CONTRIBUTE MORE THAN HALF OF THERMO'S PROFITS ITS PRODUCT LINES RANGE FROM BOMB DETECTORS AND SMOKESTACK MONITORS TO MAMMOGRAPHY MACHINES AND ARTIFICIAL HEARTS AND TO SUCH ESOTERICA AS IMAGING TECHNOLOGY DESIGNED TO TAKE THE TWINKLE OUT OF STARLIGHT ELECTRIC POWER PLANTS FUELED BY ALMOND SHELLS AND SCENTSTRIPS THAT DON'T SMELL UP YOUR FAVORITE MAGAZINE THERMO'S SALES WHICH WERE RUNNING ABOUT 200 MILLION A YEAR WHEN THE SPINOUTS BEGAN A DECADE AGO ARE EXPECTED TO HIT ABOUT 12 BILLION THIS YEAR THE COMPANY'S STOCK THEN A SPLITADJUSTED 585 A SHARE NOW STANDS AT 57125 ON THE NEW YORK STOCK EXCHANGE AFTER A SHARP RUNUP IN THE PAST TWO YEARS ANALYSTS EXPECT ITS NET INCOME TO GROW TO ABOUT 75 MILLION IN 1993 FROM 59 MILLION OR 222 A SHARE LAST YEAR EMPLOYEES CAN SCORE BIG GAINS TOO DREAM UP A GREAT IDEA AT THERMO AND YOU AREN'T REWARDED WITH JUST A PAT ON THE BACK OR EVEN JUST A BONUS YOU MIGHT GET TO RUN YOUR OWN PUBLIC COMPANY A SPINOUT GIVES THE NEW ENTREPRENEURS WORKING CAPITAL REWARDS THEM WHEN THEY DO WELL AND FORCES ACCOUNTABILITY WHEN THEY DON'T WE ANSWER TO SHAREHOLDERS NOT A DIVISION VICE PRESIDENT SAYS LOUIS SLAUGHTER PRESIDENT OF THERMEDICS DETECTION INC WHICH MAKES BOMB AND DRUG DETECTORS AND IS 60OWNED BY THERMO MY RESEARCHERS HAVE A STAKE IN THE BUSINESS AND THEY KNOW THAT THEIR WORK DIRECTLY STEERS ITS DESTINY ALTHOUGH THERMEDICS IS A STARTUP MR SLAUGHTER ADDS WE HAVE THE RESOURCES OF A BILLIONDOLLAR COMPANY BEHIND US THE SPINOUTS WORK ON THE TECHNOLOGY THE PARENT HANDLES CAPITALINVESTMENT CHOICES ACCOUNTING LEGAL AND OTHER CORPORATE SERVICES THINK OF THERMO AS MORE OF A PUBLICLY TRADED VENTURECAPITAL GROUP THAN A TRADITIONAL PUBLIC COMPANY SAYS G BENNETT STEWART AN AUTHOR WHO HAS WRITTEN ABOUT CAPITAL STRUCTURES HE SAYS THERMO USING EQUITY DECENTRALIZATION HAS HARNESSED THE FINANCIAL MARKETS TO SERVE ITS NEEDS MR STEWART ADDS THAT MORE COMPANIES ARE EXPERIMENTING WITH INNOVATIVE EQUITY STRUCTURES INCLUDING PARTIAL PUBLIC OFFERINGS SUCH AS THE FIRST DATA SPINOFF BY AMERICAN EXPRESS CO LAST YEAR OR CREATION OF A SPECIAL CLASS OF STOCK FOR SEPARATE UNITS AS RALSTON PURINA CO PLANS TO DO WITH CONTINENTAL BAKING BEFORE IBM'S RECENT MANAGEMENT SHAKEUP REARRANGED PRIORITIES ITS REPRESENTATIVES VISITED THERMO TO LOOK FOR A MODEL FOR CHANGING UNITS INTO DISCRETE COMPANIES PAUL KNIGHT OF NATWEST SECURITIES TERMS THERMO'S PORTFOLIO OF COMPANIES A PERFECT CLINTONERA INVESTMENT WITH ITS FOCUS IN POLLUTIONCONTROL ALTERNATIVE ENERGY RECYCLING AND PUBLIC SAFETY THERMO LIKES TO SAY IT TARGETS ITS RESEARCH TO MEET SOCIETY'S NEEDS BUT IT ALSO HAS BEEN A HARDHEADED MONEYMAKER EARNINGS PER SHARE HAVE GROWN A COMPOUND AVERAGE OF 29 A YEAR FOR THE PAST DECADE BUT THE SPINOUT STRATEGY CAN CAUSE ADMINISTRATIVE HEADACHES IT IS EXPENSIVE TOO DR HATSOPOLOUS ESTIMATES THE ADDED LEGAL AND ADMINISTRATIVE COSTS OF RUNNING SO MANY SEPARATE PUBLIC COMPANIES AT PERHAPS 3 MILLION TO 4 MILLION A YEAR AT THE SAME TIME THERE'S A PHYSICAL LIMIT TO THE NUMBER OF BOARD MEETINGS ONE MAN CAN ATTEND IN A SINGLE WEEK HE SAYS HE NO LONGER SERVES AS A DIRECTOR OF THERMO GRANDCHILDREN SALES OF THERMO SUBSIDIARIES' STOCK OVER THE YEARS HAVE PUMPED UP PROFIT WITH ONETIME GAINS MAKING ANALYSTS SUSPICIOUS OF THE QUALITY OF EARNINGS BUT DURING THE PAST YEAR SUCH DOUBTS HAVE COOLED WE'RE FINALLY SEEING STRONG GROWTH IN INCOME FROM OPERATIONS WHILE AT THE SAME TIME SOME OF THE SMALLER STARTUPS THAT WERE UNPROFITABLE ARE NOW BEGINNING TO MAKE MONEY SAYS EDWARD WHITE A LEHMAN BROTHERS ANALYST DR HATSOPOLOUS A COURTLY SILVERHAIRED ENGINEER ALSO IS A SELFTAUGHT ECONOMIST AND A FORMER CHAIRMAN OF THE BOSTON FEDERAL RESERVE BANK HE DEVISED THE SPINOUT STRATEGY WITH HIS YOUNGER BROTHER JOHN THERMO'S CHIEF FINANCIAL OFFICER AFTER CONCLUDING THAT THE HIGH COST OF CAPITAL IN THE US WAS HURTING INDUSTRY AT THERMO HE WORRIED THAT MANY PROMISING NEW PROJECTS WHICH MIGHT LOSE MONEY AT FIRST WOULD HURT EARNINGS AND HE WANTED A WAY TO MOTIVATE AND RETAIN HIS BEST ENGINEERS AS THERMO GREW AND DIVERSIFIED THE FIRST OFFSPRING AND A DEPARTURE FROM THERMO'S LONGSTANDING EMPHASIS ON INSTRUMENTS AND ENERGY TECHNOLOGY WAS THERMEDICS INC WHICH WAS WORKING ON AN ARTIFICIAL HEART PUMP TO KEEP CARDIAC PATIENTS ALIVE WHILE THEY WAIT FOR A TRANSPLANT AFTER OVER A DECADE OF WORK THE ARTIFICIAL HEART HAS BEEN A LIFELINE FOR MORE THAN 100 TRIAL PATIENTS IT IS AWAITING APPROVAL BY THE FOOD AND DRUG ADMINISTRATION SAYS ITS DEVELOPER VICTOR POIRIER THE CHIEF EXECUTIVE OF ANOTHER SPINOUT THERMO CARDIOSYSTEMS INC FOR EXAMPLE TECOFLEX A PLASTIC MADE BY THERMEDICS WAS DEVELOPED FOR USE INSIDE THE HEART DEVICE BUT RESEARCHERS REALIZED THAT BECAUSE IT WAS BIOLOGICALLY INERT IT WOULD BE USEFUL TO MAKERS OF OTHER MEDICAL DEVICES NOW USED IN SUCH PRODUCTS AS HEART CATHETERS IT BRINGS IN 4 MILLION A YEAR BECAUSE TECOFLEX CAN BE CURED WITHOUT HEAT RESEARCHERS FIGURED THAT IT COULD BE MIXED WITH DELICATE OILS AND PHARMACEUTICALS ONE PRODUCT A BANDAGE INFUSED WITH ANTIBIOTICS NEVER TOOK OFF BUT ANOTHER HAS BECOME A RUNAWAY HIT A PERFUMESAMPLE STRIP FOR MAGAZINES THAT HAS NO SMELL UNTIL OPENED SCENTSEAL MADE ITS DEBUT IN THE MARCH ISSUE OF VOGUE SOME 2 MILLION OF ORDERS HAVE COME IN SINCE THE START OF THE YEAR MR WOOD SAYS NEW PRODUCTS CAN COME IN A CASCADE AFTER THERMEDICS FOUND A WAY TO TEST BLOOD FOR THE ANGINA DRUG NITROGLYCERIN DAVID FINE A COMPANY RESEARCHER BEGAN TINKERING WITH DEVICES THAT COULD SNIFF TRACES OF EXPLOSIVES MADE FROM THE CHEMICAL NOW THERMEDICS SELLS BOMB DETECTORS TO POLICE AND TO AIRPORTS IN EUROPE AND THE MIDEAST THE TECHNOLOGY HAS BEEN FURTHER MODIFIED TO SNIFF OUT COCAINE METHAMPHETAMINES AND HEROIN THIS CULTURE OF INNOVATION IS ALREADY TRANSFORMING THE SAN DIEGO LASER LAB BEFORE ITS ACQUISITION BY THERMO WESTERN RESEARCH WAS LARGELY DEPENDENT ON SHRINKING STAR WARS FUNDING IT WAS RENAMED AND IN 1991 BECAME THERMOTREX THROUGH A 30 MILLION INITIAL PUBLIC OFFERING THAT LEFT THERMO ELECTRON HOLDING 63 WITH THEIR NEW CHARTER THERMOTREX RESEARCHERS BEGAN TO SEE THEIR DEFENSERELATED WORK IN A NEW LIGHT HIGHDEFINITION RADAR FOR DETECTING MINES OR IDENTIFYING WARPLANES MIGHT FIND A MARKET IN COMMERCIAL OR RESIDENTIAL SECURITY PENTAGONFUNDED WORK ON USING DIAMONDS IN HIGHPOWERED SWITCHES IS BEING REDIRECTED TO BUILD FM AND TV TRANSMITTER TUBES AND A MICROWAVE CAMERA DEVELOPED TO HELP HELICOPTER PILOTS LAND IN FOG IS BEING MODIFIED TO TAKE PICTURES THROUGH SOLID WALLS NONE OF THESE TECHNOLOGIES ARE COMMERCIALLY VIABLE YET BUT THERMOTREX USED HALF THE PROCEEDS OF ITS PUBLIC OFFERING PLUS 13 MILLION OF ITS SHARES TO ACQUIRE A LEADING MAKER OF MAMMOGRAPHY MACHINES AND BEGAN MELDING THE TWO COMPANIES' TECHNOLOGIES A NEW IMAGING SYSTEM WILL BE INTRODUCED THIS FALL THAT WILL USE FULLY DIGITAL IMAGES TO MAKE BREASTCANCER DIAGNOSIS FASTER AND MORE PRECISE AND REDUCE THE NEED FOR BIOPSIES MANAGERS WHO COME TO THERMO FROM OTHER COMPANIES ARE SOMETIMES SURPRISED BY THEIR NEW FREEDOM THOMAS CORCORAN WHO JOINED THERMO POWER CORP FROM CARRIER CORP WHEN HIS REFRIGERATION UNIT WAS ACQUIRED RECALLS THE THREE OR FOUR LEVELS OF BUREAUCRACY WE HAD TO GO THROUGH TO GET A CAPITAL PROJECT APPROVED AND AS A SMALL BUSINESS INSIDE A BIG COMPANY WE WERE ALWAYS THE LAST IN LINE NOW MR CORCORAN SAYS HE GETS QUICK CLEARANCE FOR WORTHY PROJECTS NOT ALL OF THERMO'S 65 ACQUISITIONS HAVE WORKED OUT THOUGH A SMALL METALPLATING COMPANY BOUGHT A FEW YEARS AGO WENT SOUR COSTING 18 MILLION AND MORE THAN A YEAR TO FIX AND AN ENVIRONMENTAL ENGINEERING COMPANY PURCHASED IN 1988 DRAINED 6 MILLION THERMO ALSO HAS ITS SHARE OF TECHNOLOGICAL DEADENDS ONE WAS A 1960S EFFORT TO BUILD A PLUTONIUMFUELED STEAMDRIVEN IMPLANTABLE ARTIFICIAL HEART RIGHT NOW THERMO'S HOTTEST PROSPECT MAY BE THE HAIR REMOVER WHILE OTHERS HAVE TRIED UNSUCCESSFULLY TO USE LASERS THIS WAY THERMOTREX RESEARCHERS INVENTED AND PATENTED A METHOD USING A PROPRIETARY SKIN PREPARATION AND A SPECIAL LASER THERMO CLAIMS IT IS FAST PAINLESS AND GENERALLY SUPERIOR TO ELECTROLYSIS IN WHICH AN ELECTRIFIED NEEDLE MUST BE INSERTED IN EACH FOLLICLE CLINICAL TRIALS HAVE JUST BEGUN AND FDA APPROVAL WILL BE NEEDED THE TECHNIQUE'S POTENTIAL PERSUADED THERMO TO CREATE THERMOLASE WHICH IN MARCH RAISED 153 MILLION IN A PRIVATE OFFERING OF A 19 STAKE WITH THERMOTREX DR HATSOPOLOUS SAYS HE HOPES TO CREATE A NEW CRUCIBLE OF STARTUPS AND HE IS CONVINCED THE SPINOUT STRATEGY CAN MAKE IT HAPPEN THERE'S NO BETTER WAY TO STIMULATE CREATIVITY THAN TO SEE A GUY NEXT TO YOU GET 500000 IN OPTIONS FOR A GREAT IDEA 9308050063 930805 BUSINESS BRIEF FIRST UNION CORP BANK TO CLOSE AS MANY AS 125 WASHINGTONAREA BRANCHES FIRST UNION CORP SAID ITS FIRST UNION NATIONAL BANK UNIT IS CONSIDERING CLOSING 100 TO 125 BRANCHES IN THE WASHINGTON DC AREA THIS YEAR TO SAVE 15 MILLION TO 20 MILLION THE CHARLOTTE NC COMPANY WILL DECIDE THIS MONTH WHICH BRANCHES WILL CLOSE THOSE CONSIDERED COMPRISE ABOUT ONETHIRD OF THE 366 BRANCHES ACQUIRED WHEN THE COMPANY BOUGHT FIRST AMERICAN METRO CORP DOMINION BANKSHARES MERITOR SAVINGS BANK AND SAILORS AND MERCHANTS BANK AND TRUST IN THE PAST YEAR THE COMPANY EXPECTS TO KEEP ABOUT 80 OF THE BRANCH EMPLOYEES AFTER THE CLOSINGS THE COMPANY ALSO INTENDS TO OPEN NEW BRANCHES IN THE WASHINGTON AREA BUT IT COULDN'T PROVIDE SPECIFIC NUMBERS 9308050062 930805 BUSINESS BRIEF CORNING INC CONSOLIDATION OF NEW UNIT TO SPUR 3RDPERIOD CHARGE CORNING INC SAID IT WILL TAKE A THIRDQUARTER AFTERTAX RESTRUCTURING CHARGE OF 25 MILLION TO 50 MILLION TO CONSOLIDATE ITS NEW DAMON CORP UNIT WITH ITS METPATH CLINICAL LABS BUSINESS CORNING COMPLETED ITS TENDER OFFER FOR DAMON YESTERDAY CORNING ALSO SAID IT WILL REFINANCE DAMON'S 575 MILLION PURCHASE PRICE IN THE SECOND HALF BY ISSUING 400 MILLION OF COMMON STOCK AND 200 MILLION OF LONGTERM DEBT CORNING COVERED THE PRICE WITH A ONEYEAR LOAN THE NEW FINANCIAL STRUCTURE WILL REDUCE PERSHARE EARNINGS BY ABOUT 3 OVER 12 MONTHS A SPOKESWOMAN SAID THE CORNING NY SPECIAL MATERIALS FIBER OPTICS LAB SERVICES AND HOUSEWARES CONCERN HAS 1953 MILLION SHARES OUTSTANDING IN THE 1992 THIRD QUARTER CORNING HAD EARNINGS OF 107 MILLION OR 57 CENTS A SHARE AFTER A 500000 GAIN FOR A TAX BENEFIT ON SALES OF 115 BILLION CORNING CAN ISSUE ONLY UP TO 50 MILLION IN LONGTERM DEBT IT WILL FILE A REGISTRATION STATEMENT IN A MATTER OF DAYS WITH THE SECURITIES AND EXCHANGE COMMISSION TO INCREASE THAT LIMIT TO 450 MILLION A SPOKESWOMAN SAID 9308050061 930805 TRAVEL DELTA CUTS FARES FOR FALL A SEASON RIPE FOR INTENSE WAR BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL DELTA AIR LINES SLASHED DOMESTIC FALL FARES AS MUCH AS 35 FIRING THE FIRST SHOT IN WHAT COULD BE A HEAVILY DISCOUNTED SEASON FOR LEISURE TRAVELERS DELTA ALSO CUT FARES AN ADDITIONAL 20 FOR YOUNGSTERS BETWEEN THE AGES OF TWO AND 17 WHO ACCOMPANY AN ADULT PAYING PASSENGER ONLY ONE YOUNGSTER PER ADULT PASSENGER CAN RECEIVE THE DISCOUNTED FARE CONTINENTAL AIRLINES WINGS HOLDINGS INC'S NORTHWEST AIRLINES AND AMERICA WEST AIRLINES SAID THEY WERE MATCHING THE INITIATIVE AND SEVERAL OTHER CARRIERS SAID THEY WERE STUDYING THE MOVE ALL MAJOR AIRLINES ARE EXPECTED TO FOLLOW AS CARRIERS ARE UNWILLING TO LOSE PASSENGERS TO A LOWFARE COMPETITOR THE FALL SEASON TYPICALLY IS RIFE WITH FARE SALES ON ADVANCEPURCHASE TICKETS AS THE AIRLINES TRY TO ENTICE TRAVELERS AFTER THE HEAVY SUMMER VACATION PERIOD BUT FARE WARS MAY BE PARTICULARLY INTENSE THIS FALL BECAUSE THE INDUSTRY HAS STAYED AWAY FROM LAST YEAR'S STEEP DISCOUNTING PRICES ARE RELATIVELY HIGH AND CONSUMERS ARE CAUTIOUS WE HAVEN'T HAD A REALLY GOOD FARE WAR IN A WHILE AND PRICES ARE MUCH HIGHER THAN THEY WERE A YEAR AGO SAID JEANIE M THOMPSONSMITH PRESIDENT OF TOPAZ ENTERPRISES INC A TRAVEL MANAGEMENT CONSULTING FIRM IN PORTLAND DELTA IS OFFERING A SERIES OF SALES FOR TICKETING BETWEEN NOW AND SEPT 15 PASSENGERS BUYING TICKETS THROUGH AUG 17 WILL RECEIVE A 35 DISCOUNT FOR TICKETS BOUGHT FROM AUG 18 TO AUG 31 THE DISCOUNT IS 30 AND TICKETS BOUGHT FROM SEPT 1 TO SEPT 15 WILL BE CUT BY 25 THE EARLIER PASSENGERS FINALIZE THEIR TRAVEL PLANS THE MORE SAVINGS THEY WILL ENJOY SAID ROBERT W COGGIN DELTA'S SENIOR VICE PRESIDENT FOR MARKETING FOR EXAMPLE THE NORMAL ROUNDTRIP EXCURSION FARE BETWEEN ATLANTA AND LOS ANGELES IS 557 DELTA'S DISCOUNTED FARES DEPENDING ON WHEN THE TICKET IS BOUGHT ARE 362 390 OR 418 TRAVEL MUST TAKE PLACE BETWEEN SEPT 15 AND DEC 15 SATURDAY NIGHT STAYS ARE REQUIRED BUT THERE ARE NO HOLIDAY BLACKOUT PERIODS WHICH MEANS THE SALE IS IN EFFECT OVER THANKSGIVING WEEKEND WHEN AIRLINES TYPICALLY DON'T SELL DISCOUNTED TICKETS THE SALE APPLIES TO MOST MARKETS IN THE US INCLUDING ALASKA HAWAII SAN JUAN THE US VIRGIN ISLANDS PLUS CANADA BERMUDA AND NASSAU IN SOME WAYS DELTA'S MOVE IS SURPRISING IN THAT IT USUALLY DOES NOT TAKE THE LEAD ON DOMESTIC FARE SALES BUT THE ATLANTA AIRLINE MAY HAVE TAKEN THE FIRST STEP THIS FALL BECAUSE TWO OTHER AIRLINES THAT ARE TYPICALLY AGGRESSIVE DISCOUNTERS CONTINENTAL AND NORTHWEST HAVE BEEN QUIET BOTH AIRLINES MAY HAVE BEEN RELUCTANT TO INITIATE A FARE WAR BECAUSE THEY ARE CURRENTLY IN FEDERAL COURT AGAINST AMR CORP'S AMERICAN AIRLINES ALLEGING THAT THE NATION'S LARGEST CARRIER TRIED TO RUN THEM OUT OF BUSINESS BY CUTTING FARES SHARPLY LAST YEAR IN FACT SOME INDUSTRY ANALYSTS HAD PREDICTED THAT THE FALL FARE WARS WOULD NOT BEGIN UNTIL AFTER THE COMPLETION OF THAT TRIAL BUT DELTA THE NATION'S THIRD LARGEST CARRIER DECIDED NOT TO WAIT WHILE DEEPER FALL CUTS FOR LEISURE TRAVEL MAY TAKE PLACE PARTICULARLY IF DEMAND REMAINS WEAK BUSINESS TRAVELERS WILL LIKELY SEE THEIR FARES RISE AIRLINES HAVE ONLY RAISED FARES MODERATELY THREE TIMES THIS YEAR AND THE INDUSTRY FIGURES IT CAN RAM DOWN PRICE INCREASES ON EXECUTIVES WHO'VE RETURNED TO WORK AFTER THEIR SUMMER VACATIONS 9308050060 930805 BUSINESS BRIEF SUN SPORTSWEAR INC DEMAND FOR GOODS DOUBLED EARNINGS IN SECOND QUARTER SUN SPORTSWEAR INC KENT WASH SAID STRONG DEMAND FOR CLOTHING ITEMS BEARING LICENSED IDENTIFICATION DOUBLED SECONDQUARTER EARNINGS SUN SAID NET INCOME ROSE TO 11 MILLION OR 20 CENTS A SHARE FROM 553000 OR 10 CENTS A SHARE A YEAR EARLIER SALES ROSE 64 TO 318 MILLION FROM 194 MILLION THE LATEST RESULTS INCLUDED A ONETIME PRETAX CHARGE OF 1 MILLION RELATED TO THE COMPANY'S PLANS TO SHUT ITS JOHNSON CITY TENN PLANT SALES WERE BOOSTED BY A STRONG DEMAND FOR CERTAIN GARMENTS FOR WOMEN AND GIRLS AND BY NEARLY A SIXFOLD INCREASE IN SALES OF LICENSED GOODS SUCH AS CLOTHING BEARING LOONEY TUNES CHARACTERS AND MAJOR LEAGUE BASEBALL LOGOS FIRST HALF NET ROSE 36 TO 15 MILLION OR 27 CENTS A SHARE FROM 11 MILLION OR 19 CENTS A SHARE A YEAR AGO REVENUE ROSE 41 TO 541 MILLION FROM 385 MILLION 9308050059 930805 WONDER WHERE I COULD HAVE PUT MY DIAMOND AND JADE NECKLACE' BY STEPHEN FRANK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN THE AUCTIONEER'S GAVEL CAME DOWN FOR THE LAST TIME AT THE WILLIAM DOYLE GALLERIES YESTERDAY A WHOLE LOT OF PEOPLE HAD LOST A WHOLE LOT OF MONEY BUT NONE OF THEM WERE PRESENT AND CHANCES ARE THEY WILL NEVER KNOW BEGINNING AT 10 AM MORE THAN 200 BIDDERS CROWDED INTO THE AUCTION HOUSE ON THIS CITY'S UPPER EAST SIDE EAGER FOR A SHOT AT THE CONTENTS OF 400 BANK SAFEDEPOSIT BOXES FORGOTTEN OR ABANDONED BY THEIR RENTERS THE ITEMS INCLUDING JEWELS RARE COINS AND ANTIQUE TIMEPIECES CAME FROM THE VAULTS OF FIVE BANKS WHERE MANY HAD BEEN UNTOUCHED FOR SEVERAL DECADES NEW YORK LAW ALLOWS BANKS TO BREAK OPEN THE BOXES 13 MONTHS AFTER RENTAL PAYMENTS CEASE IF THE RENTERS CAN'T BE FOUND WITHIN THE NEXT TWO YEARS THE BANKS CAN AUCTION OFF THE GOODS THE BULK OF THE PROCEEDS GOES TO THE STATE YESTERDAY WITH PAYMENTS ON THESE BOXES LONG EXPIRED AND WITH THE OWNERS OR THEIR HEIRS NOWHERE TO BE FOUND THE CONTENTS WERE SOLD OFF IN A BIDDING FRENZY THAT LASTED FOR MORE THAN SIX HOURS ONE PAIR OF BIDDERS WHO IDENTIFIED THEMSELVES ONLY AS ANDY AND ALAN DREW ADMIRING APPLAUSE WHEN THEY PURCHASED A DIAMOND AND EMERALD CARTIER NECKLACE FOR MORE THAN 12 MILLION OVER THREE TIMES THE PREAUCTION ESTIMATE THE NECKLACE HAD BEEN LOCKED IN A CITIBANK VAULT FOR MORE THAN 50 YEARS ALONG WITH OTHER ITEMS INCLUDING A DIAMOND AND JADE NECKLACE THAT WENT FOR NEARLY 278000 AND A PEARL AND JADE BRACELET THAT FETCHED 25300 ANDY AND ALAN BOUGHT ALL THREE PIECES IF YOU CAN STEAL SOMETHING LEGALLY WE DID IT ANDY SAYS ADDING THAT HE EXPECTS TO RESELL THE ITEMS TO DEALERS AT A BIG PROFIT AS FOR THE JEWELRY'S ORIGINAL OWNERS AUCTION OFFICIALS SAY THEIR LOSS IS PRETTY MUCH TOUGH LUCK IT IS SADDENING ACKNOWLEDGES DIANE M WHITELEY THE GALLERY'S MARKETING DIRECTOR A FEW DAYS AFTER A SIMILAR AUCTION THREE YEARS AGO A WOMAN CALLED IN TO CLAIM A BROOCH THAT HAD SOLD FOR 630000 MS WHITELEY SAYS THE WOMAN RECEIVED THE PROCEEDS FROM THE BROOCH'S SALE MINUS THE AUCTION HOUSE'S COMMISSION AND THE BANK'S EXPENSES MS WHITELEY SAYS YESTERDAY'S SALE TEACHES AN IMPORTANT LESSON IF YOU HAVE PARENTS WHO HAVE JEWELRY AND WHO ARE GETTING UP IN YEARS SHE SAYS I'D THINK YOU'D WANT TO KNOW WHERE THINGS ARE STASHED AWAY WHETHER IT'S IN A SAFEDEPOSIT BOX OR UNDER A MATTRESS 9308050058 930805 WHO'S NEWS INTERSYSTEMS INC INTERSYSTEMS INC GREENWICH CONN FRED S ZEIDMAN 47 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF THIS PLASTICS RESIN CONCERN HE SUCCEEDS STEVE BARCIK WHO WILL REMAIN WITH THE COMPANY AS A CONSULTANT THE COMPANY DIDN'T GIVE A REASON FOR MR BARCIK'S SHIFT MR ZEIDMAN WHO WAS PREVIOUSLY PRESIDENT OF A VENTURE CAPITAL FIRM ENTERPRISE CAPITAL CORP BOUGHT 200000 SHARES OF INTERSYSTEMS AT 1 A SHARE IN CONNECTION WITH HIS APPOINTMENT THE COMPANY WHICH HAD 34 MILLION SHARES OUTSTANDING AS OF MAY 14 ALSO GRANTED MR ZEIDMAN OPTIONS TO PURCHASE AN ADDITIONAL 400000 SHARES 9308050057 930805 INTERNATIONAL BRIEF RHONEPOULENC SA AN EARNINGS DECLINE OF 10 IS ESTIMATED FOR FIRST HALF FIRSTHALF PROFIT OF FRENCH STATECONTROLLED CHEMICALS AND DRUG GROUP RHONEPOULENC SA FELL 10 AND ITS OPERATING PROFIT DROPPED 15 FROM THE YEAREARLIER PERIOD CHIEF EXECUTIVE OFFICER RENE FOURTOU ESTIMATED TO FRENCH NEWS MEDIA GIVEN THE ECONOMIC DIFFICULTIES BUSINESS UNCERTAINTIES AND RESTRUCTURING CHARGES MR FOURTOU WARNED THAT A DECLINE IN FULLYEAR 1993 NET INCOME AND OPERATING PROFIT COULDN'T BE EXCLUDED HE SAID THE RECESSION IN EUROPE HAD WORSENED OVER THE FIRST HALF OF THE YEAR HURTING THE GROUP'S BUSINESS BUT HE SAID THAT THE BETTER OUTLOOK FOR EARNINGS THAN OPERATING PROFIT REFLECTS LOWER FINANCIAL CHARGES MR FOURTOU'S PREVIEW OF THE GROUP'S 1993 FINANCES SO FAR WAS DISTRIBUTED IN A COMPANY SYNOPSIS OF AN INTERVIEW IN THE FRENCH DAILY LES ECHOS FIRSTHALF RESULTS WILL BE RELEASED IN THE BEGINNING OF SEPTEMBER 9308050056 930805 BUSINESS BRIEF HONEYWELL INC OPTION PACT SET ON BUYBACK OF SOUTH AFRICAN OPERATION HONEYWELL INC SAID IT ENTERED INTO AN OPTION AGREEMENT TO BUY BACK THE SUBSIDIARY IT SOLD IN 1986 WHEN IT DIVESTED ITSELF OF ITS SOUTH AFRICAN OPERATIONS TERMS WEREN'T DISCLOSED THE MINNEAPOLIS CONTROLS CONCERN SAID IT AGREED TO ACQUIRE THE MARTECH BUSINESS OF MURRAY & ROBERTS A JOHANNESBURG ENGINEERING AND CONSTRUCTION FIRM MARTECH CURRENTLY DISTRIBUTES HONEYWELL SYSTEMS AND PRODUCTS IN SOUTH AFRICA AND OTHER SUBSAHARAN COUNTRIES HONEYWELL SAID THE AGREEMENT WAS REACHED IN EXPECTATION OF AN INVITATION FROM THE AFRICAN NATIONAL CONGRESS FOR US COMPANIES TO REINVEST IN SOUTH AFRICA UNDER THE AGREEMENT WHICH EXPIRES NOV 1 1996 HONEYWELL MUST EXERCISE THE OPTION IF THE ANC CALLS FOR THE LIFTING OF SANCTIONS AGAINST SOUTH AFRICA AND IF HONEYWELL IS SATISFIED THAT THE PURCHASE WON'T AFFECT ITS BUSINESS RELATIONSHIPS WITH US MUNICIPALITIES THAT RESTRICT SUPPLIERS' INVOLVEMENT IN SOUTH AFRICA 9308050055 930805 BEAR STEARNS'S TOP PAYCHECKS GROW BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BEAR STEARNS COS' TWO TOP EXECUTIVES WHO ACKNOWLEDGED THEY MADE TOO MUCH MONEY LAST YEAR WILL GET EVEN MORE THIS TIME AROUND FISCAL 1993 PAY PACKAGES OF 159 MILLION EACH ACCORDING TO PEOPLE CLOSE TO THE FIRM THE FAT PAYCHECKS FOR ALAN ACE GREENBERG AND JAMES E CAYNE BEAR STEARNS'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER RESPECTIVELY COME AMID RECORD PROFIT AT THE BIG WALL STREET TRADING FIRM EARLIER THIS WEEK BEAR STEARNS REPORTED NET INCOME OF 3624 MILLION FOR ITS FISCAL YEAR ENDED JUNE 30 23 HIGHER THAN A YEAR EARLIER BUT THE HEFTY COMPENSATION PACKAGES WHICH WILL BE DISCLOSED IN THE FIRM'S PROXY NEXT MONTH ALSO SEEM TO NULLIFY AN EFFORT BY BEAR STEARNS TO REIN IN ITS EXECUTIVE PAYCHECKS THE FIRM'S TOPLEVEL PAY IS HIGHER THAN NEARLY EVERY OTHER MAJOR BROKERAGE FIRM INCLUDING MERRILL LYNCH & CO WHICH EARNED MORE THAN TWICE WHAT BEAR STEARNS EARNED DURING THE MOST RECENT YEAR NEARLY ALL WALL STREET FIRMS ARE BRACING FOR HEIGHTENED SHAREHOLDER SCRUTINY OF THEIR PAY PACKAGES LAST YEAR BEAR MADE HEADLINES WHEN IT REVISED THE WAY IT CALCULATED ITS BONUS POOL THAT MAKES UP THE BULK OF ITS TOP EXECUTIVES' PAY PACKAGES THE NEW FORMULA COULD SLASH BONUSES BY 20 DEPENDING ON THE FIRM'S INCOME MESSRS GREENBERG AND CAYNE HAD FISCAL 1992 PAY OF 158 MILLION AND 147 MILLION RESPECTIVELY BEAR STEARNS OFFICIALS DECLINED TO DISCUSS SPECIFIC 1993 PAY FIGURES BUT THEY DEFEND THEIR LOFTY PAY LEVELS POINTING TO THE FIRM'S PRETAX RETURN ON EQUITY OF 49 TOP BEAR STEARNS EXECUTIVES ARE PAID AN ANNUAL BASE SALARY OF 200000 THE REST IS A BONUS THAT'S TIED TO THE FIRM'S PROFITS MESSRS GREENBERG AND CAYNE COULD HAVE MADE MORE THAN 18 MILLION IN FISCAL 1993 IF NOT FOR THE REVISED PAY FORMULA WE LOWERED THE BONUS FORMULA BECAUSE WE WANTED TO DO THE RIGHT THING SAYS MR GREENBERG IN AN INTERVIEW BUT WE HAVE A PROBLEM WE KEEP MAKING MONEY BESIDES HE ADDS I DON'T KNOW OF ANY OTHER CEO WILLING TO LET BASICALLY ALL THEIR BIG MONEY SWING WITH THE EARNINGS OF THE FIRM MANY WALL STREET EXECUTIVES EARN A BIG CHUNK OF THEIR PAY IN STOCK OPTIONS OR RESTRICTED STOCK MR CAYNE BEAR STEARNS'S PRESIDENT WHO ALSO RECENTLY SUCCEEDED MR GREENBERG AS CHIEF EXECUTIVE SAYS SIMPLY THESE ARE THE GUIDELINES OF THE BONUS POOL THAT'S WHAT IT IS THERE ARE NO STOCK OPTIONS THERE'S NO FREE ANYTHING IF BEAR STEARNS MAKES LESS THAN 15 MILLION IN ADJUSTED ANNUAL PRETAX EARNINGS ITS MOST SENIOR EXECUTIVES GET NO BONUS AT ALL AS BEAR STEARNS EARNS MORE AN INCREASINGLY HIGHER PERCENTAGE OF ITS PRETAX PROFIT IS PASSED ON TO THE FIRM'S EXECUTIVE COMMITTEE BUT UNDER THE REVISED BONUS FORMULA IF ANNUAL PRETAX PROFIT EXCEEDS 600 MILLION THAT PERCENTAGE TAPERS OFF THE FIRM'S PRETAX PROFIT FOR FISCAL 1993 WAS 6144 MILLION BEAR STEARNS IS KNOWN AS ONE OF WALL STREET'S MOST TIGHTFISTED FIRMS FOR FISCAL 1993 BEAR STEARNS'S COMPENSATION EXPENSE REPRESENTED 48 OF ITS NET REVENUE ANY FIGURE BELOW 50 IS CONSIDERED HEROIC PARSIMONY FOR WALL STREET FIRMS 9308050054 930805 MARKETSCAN HYBRID SNACKS TRY TO BE TASTY HEALTHY BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL AT FIRST GLANCE CRACKUPS LOOKS LIKE JUST ANOTHER SNACK FOR SUPERMARKETS' POTATOCHIP SHELVES THE NEW PRODUCT IS MADE OF POTATOES COMES IN CHEDDAR AND SALSA FLAVORS AND TARGETS TEENAGERS PERENNIAL POTATOCHIP MUNCHERS BUT YOU ARE MORE LIKELY TO FIND CRACKUPS SOLD ALONGSIDE RITZ CRACKERS THAN RUFFLES CHIPS THE CREATION OF RJR NABISCO INC THE COOKIE AND CRACKER KING CRACKUPS IS JUST THE LATEST OF A HOST OF NEW HYBRID SNACKS THAT ATTEMPT TO MARRY POTATOCHIP TASTINESS WITH THE CRACKER'S MORE WHOLESOME REPUTATION THERE'S A GROWING RECOGNITION THAT BOTH SNACK CRACKERS AND SALTY SNACKS DELIVER MANY OF THE SAME BENEFITS TO CONSUMERS SAYS WYNN WILLARD SENIOR BUSINESS DIRECTOR AT NABISCO IT DOESN'T TAKE A VERY HUGE STEP TO MOVE CRACKERS CLOSER TO THE POTATO CHIP CATEGORY CRACKER MAKERS FACING SLUGGISH GROWTH IN THEIR OWN CATEGORY HOPE TO STEAL SOME OF THE FASTERGROWING SALTYSNACK MARKET FOR THEMSELVES MAJOR POTATOCHIP MARKETERS IN TURN ARE STRIKING BACK IN THE CRACKER AISLES WE'RE ALL COMPETING FOR THE SAME CONSUMER SAYS PETER CLINE GROUP VICE PRESIDENT OF NORTH AMERICAN SNACKS FOR POTATOCHIP MAKER BORDEN INC WHICH HAS BEEN TRYING TO DEVELOP A CRACKER PRODUCT OF ITS OWN THE RESULT HAS BEEN A PROFUSION OF NEW CHIPS WITH CRACKERLIKE PROPERTIES AND OF NEW CRACKERS WITH CHARACTERISTICS OF CHIPS AMONG THEM NABISCO'S MR PHIPPS PRETZEL CHIPS AND TATER CRISPS SUNCHIPS FROM PEPSICO INC'S FRITOLAY DIVISION KEEBLER CO'S MUNCH 'EMS AND WHEATABLES AND BORDEN'S GRAINGERS MULTIGRAIN CHIPS NOW IN TEST MARKET I'VE NEVER SEEN SO MUCH ACTIVITY IN MY LIFE SAYS DENNIS P MITCHELL RESEARCH EDITOR OF SNACK FOOD MAGAZINE IT'S TOTAL CHAOS SNACK MAKERS' NEW EAGERNESS TO VENTURE INTO UNFAMILIAR TERRITORY UNDERSCORES THE SLOW GROWTH AND FIERCE COMPETITION THEY FACE IN THEIR TRADITIONAL STRONGHOLDS BUT THE NEW CATEGORY APPEARS TO BE FALTERING AMID LACKLUSTER DEMAND AND CONSUMER CONFUSION OVER THE GLUT OF PRODUCTS DATA COMPILED BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE PAINT A BLEAK PICTURE WITH NEARLY EVERY HYBRID SNACK POSTING DECLINES IN RECENT MONTHS DOLLAR SALES IN SUPERMARKETS OF FRITOLAY'S SUNCHIPS MULTIGRAIN CHIPS CONSIDERED THE LEADER OF THE HYBRID CATEGORY DECLINED 102 TO 193 MILLION IN THE 12 WEEKS ENDED MAY 23 FRITOLAY BLAMES THE DECLINE ON A SKEWED COMPARISON WITH A YEAR AGO WHEN A NUMBER OF LINE EXTENSIONS WERE LAUNCHED KEEBLER'S WHEATABLES SNACK CRACKERS AND MUNCH 'EMS CRACKERS THAT CRUNCH LIKE CHIPS SANK 16 AND 118 RESPECTIVELY DURING THE SAME PERIOD KEEBLER ATTRIBUTES THE DECLINES TO AN ABSENCE OF PROMOTIONS DURING THE PERIOD TO BE SURE NOT EVERY BRAND HAS SUFFERED NABISCO'S MR PHIPPS PRETZEL CHIPS LOWFAT PRETZELS IN CHIP FORM POSTED A 178 INCREASE IN SALES WHILE THE COMPANY'S RECENTLY LAUNCHED MR PHIPPS TATER CRISPS RACKED UP SALES OF 112 MILLION IN THE PERIOD BUT COMPETITION HAS ALREADY EMERGED FRITOLAY IS ROLLING OUT A ROLD GOLD PRETZEL CHIP OF ITS OWN SOME RECENT ENTRIES HAVE ALREADY FAILED SALES OF TWO RECENT KEEBLER ENTRIES QUANGLES MULTIGRAIN CHIPS AND SNACKLIN CHEDDAR CRACKER CHIPS PLUNGED OVER 95 REFLECTING THE COMPANY'S RECENT DECISION TO ABANDON THE BRANDS AND NABISCO'S HIGHLY SEASONED ZINGS CRACKERS INTRODUCED LAST YEAR ARE ALL BUT DEAD IN THE WATER THE BRAND'S SALES PLUMMETED 81 SMALL WONDER LOOK AT THE PRODUCT A NABISCO SPOKESMAN SAYS OF ZINGS IT'S NOT UNIQUE PERHAPS NO ONE UNDERSTANDS THE LIMITATIONS OF HYBRIDS BETTER THAN FRITOLAY WHICH HELPED INSPIRE THE TREND WITH SUNCHIPS WHEN IT ROLLED OUT SUNCHIPS IN 1991 THE COMPANY BOASTED THAT THE GRAINBASED CHIPS COULD EVENTUALLY RIVAL ITS DORITOS TORTILLA CHIPS A BRAND WITH WORLDWIDE SALES OF OVER 2 BILLION FRITO'S EXPECTATIONS FOR SUNCHIPS WERE PROBABLY TOO HIGH SAYS SNACK FOOD'S MR MITCHELL THE COMPANY INSISTS IT IS HAPPY WITH SUNCHIPS' PERFORMANCE DORITOS IS A 25YEAROLD BRAND A SPOKESMAN SAYS IT DIDN'T GROW OVERNIGHT FRITOLAY WAS PARTICULARLY DISAPPOINTED BY ITS TEST MARKET OF DORITOS CRACKERS CHEETOS CRACKERS AND MCCRACKEN'S CRACKER CHIPS WHEN TEST DATA SHOWED THEY WEREN'T DESTINED TO BE BLOCKBUSTERS THE COMPANY ABANDONED THE TEST AND STOPPED PRODUCING THE PRODUCTS IN FEBRUARY IN OUR ASSESSMENT IT WAS GOING TO BE A RELATIVELY NICHE PROPOSITION SAYS DWIGHT RISKE VICE PRESIDENT OF MARKET RESEARCH FOR FRITOLAY WHO ADDS WE'RE NOT NICHE MARKETERS THE EARLY SETBACKS INDICATE THAT SNACK MARKETERS MAY HAVE OVERESTIMATED CONSUMERS' WILLINGNESS TO EXPERIMENT IN SNACKING PEOPLE STILL STICK WITH ESTABLISHED BRANDS SAYS SNACK FOOD'S MR MITCHELL WHO THINKS DEMAND IS INSUFFICIENT TO SUPPORT MORE THAN ONE OR TWO BIG HYBRID PRODUCTS THEY'LL TRY NEWFANGLED THINGS LIKE MULTIGRAIN CHIPS ONLY TO A POINT HE SPECULATES THAT CONSUMERS ARE CONFUSED BY THE MULTITUDE OF PRODUCTS SCATTERED IN DIFFERENT SECTIONS OF THE SUPERMARKET OTHERS SUGGEST THAT CONSUMERS HAVE SURMISED THAT THE GOODFORYOU HALO WORN BY MANY HYBRID BRANDS IS TARNISHED MOST CONTAIN ALMOST AS MUCH FAT AS THE MALIGNED POTATO CHIP THE EXCEPTIONS MR PHIPPS PRETZEL CHIPS AND TATER CRISPS ARE SELLING WELL THE PRETZEL CHIPS HAVE FAT CONTENT RANGING FROM NO FAT AT ALL TO TWO GRAMS PER ONEOUNCE SERVING WHILE THE TATER CRIPS HAVE FOUR GRAMS OF FAT IN A ONEOUNCE SERVING POTATO CHIPS BY COMPARISON HAVE FROM EIGHT TO 10 GRAMS OF FAT PER OUNCE STILL NO ONE EXPECTS MARKETERS TO ABANDON HYBRIDIZATION ANYTIME SOON ONE REASON IS DEMOGRAPHICS CRACKER MAKERS WANT TO ROPE IN THE YOUNGER SNACKERS WHO DRIVE POTATOCHIP CONSUMPTION USAGE OF CRACKERS SKEWS FIRST TO THE VERY YOUNG AND TO OLDER CONSUMERS SAYS NABISCO'S MR WILLARD CLEARLY CRACKUPS WHICH ARE MARKETED TO TEENS SEEK TO FILL THAT GAP CRACKUPS IS BEING PROMOTED ALONG WITH THE MOVIE CONEHEADS ON CABLE TELEVISION'S MTV AND COMEDY CENTRAL CHANNELS POTATOCHIP MARKETERS ON THE OTHER HAND ARE HUNGRY FOR OLDER CONSUMERS BECAUSE THE POOL OF TEENAGERS IS DECLINING AS A PERCENTAGE OF THE POPULATION ALSO NEW CRACKERLIKE CHIPS PROMISE RELIEF FROM THE POTATOCHIP PRICE WARS AND THUS A SHOT AT FATTER PROFIT MARGINS BORDEN'S MR CLINE NOTES THAT AS A SPECIALTY SNACK THE COMPANY'S GRAINGERS CHIPS RETAIL FOR 3 A POUND WHILE POTATO OR TORTILLA CHIPS FREQUENTLY GO FOR UNDER 2 A POUND HE ADDS IT'S NOT DISCOUNTED EVERY 10 MINUTES TO THE BUYONEGETONEFREE LEVEL MARKETERS ARE SPINNING OUT SUCH PRODUCTS AS SUNCHIPS MR PHIPPS TATER CRISPS AND WHEATABLES WHICH ATTEMPT TO COMBINE THE HEALTHIER ASPECTS OF CRACKERS WITH TASTIERSOUNDING CHIPS THE RECIPE FOR SUCCESS HOWEVER HAS ELUDED MANY 9308050053 930805 INTERNATIONAL BRIEF SABENA WORKERS REJECT WAGE PLAN CHAIRMAN OFFERS RESIGNATION THE CHAIRMAN OF BELGIAN NATIONAL AIRLINE SABENA OFFERED TO RESIGN AFTER WORKERS REJECTED A PAYCUT PROPOSAL AND THE BOARD THREATENED EMPLOYEES WITH MORE LAYOFFS CHAIRMAN PIERRE GODFROID HANDED IN HIS RESIGNATION AT AN EMERGENCY BOARD MEETING BUT THE DIRECTORS ASKED HIM TO REMAIN FOR AT LEAST 15 DAYS MR GODFROID HAD THREATENED TO RESIGN IF HIS COSTCUTTING PROPOSALS WEREN'T ACCEPTED THE DIRECTORS MADE CLEAR THEIR INTENTION OF CUTTING SABENA'S WAGE BILL BY OTHER METHODS IF NECESSARY IF THE SALARY CUTS ARE NOT ACCEPTED THE COMPANY WILL NOT BE ABLE TO ESCAPE FROM NEW CUTS IN THE LABOR FORCE THE BOARD SAID IN A STATEMENT UNION OFFICIALS COULD NOT BE REACHED LAST NIGHT FOR COMMENT YESTERDAY'S EVENTS FOLLOWED A REFERENDUM TUESDAY IN WHICH 56 OF SABENA'S EMPLOYEES VOTED TO REJECT THE ALREADY REVISED WAGECUT PROPOSAL THAT WOULD HAVE REDUCED SALARIES FROM BETWEEN 25 TO 15 THE PACKAGE KNOWN AS THE GODFROID PLAN AIMED AT SAVING A TOTAL OF 55 BILLION BELGIAN FRANCS 143 MILLION OVER THREE YEARS A MOVE THE AIRLINE'S MANAGEMENT SAYS IS ESSENTIAL TO STAY IN BUSINESS 9308050052 930805 BUSINESS BRIEF WR BERKLEY CORP LOW PRICES AND STORM CLAIMS LEAD TO FLAT 2NDPERIOD NET WR BERKLEY CORP REPORTED FLAT SECONDQUARTER PERSHARE EARNINGS CITING LOW COMMERCIAL INSURANCE RATES AND MIDWEST STORM LOSSES THE GREENWICH CONN INSURANCE HOLDING COMPANY SAID NET INCOME EDGED UP 1 TO 1249 MILLION OR 69 CENTS A SHARE FROM 1239 MILLION OR 69 CENTS A SHARE A YEAR EARLIER THE AVERAGE NUMBER OF SHARES OUTSTANDING ROSE 06 TO ROUGHLY 18 MILLION IN THE 1993 PERIOD NET PREMIUMS ROSE 13 TO 1213 MILLION FROM 1073 MILLION FUELED BY THREE NEW PROPERTY CASUALTY BUSINESSES IN NEW ENGLAND AND THE MIDWEST IN THE FIRST HALF NET FELL 20 TO 259 MILLION OR 143 A SHARE FROM 325 MILLION 181 A SHARE WHICH INCLUDED A GAIN OF 59 MILLION OR 33 CENTS A SHARE FROM AN ACCOUNTING CHANGE THE COMPANY SAID CLAIM PAYMENTS FOR TORNADOES HAIL AND WIND STORMS IN THE MIDWEST AS WELL AS CONTINUING PRICE COMPETITION IN COMMERCIAL LINES HAMPERED EARNINGS 9308050051 930805 ABREAST OF THE MARKET STOCKS DECLINE AMID CONCERNS OVER INTEREST RATES BUDGET VOTE BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCKS SLUMPED AS RISING INTEREST RATES AND JITTERS ABOUT TODAY'S BUDGET VOTE CAST A PALL OVER THE MARKET THE DOW JONES INDUSTRIAL AVERAGE FELL 922 POINTS TO 355205 AND THE STANDARD & POOR'S 500STOCK INDEX SLID 073 POINT TO 44854 IN MODERATE TRADING EVEN THE DOW JONES UTILITY AVERAGE WHICH HAD SURGED TO TWO CONSECUTIVE HIGHS THIS WEEK RETREATED SLIPPING 033 TO 25125 AS INTEREST RATES HEADED HIGHER VOLUME ON THE BIG BOARD TOTALED 230 MILLION SHARES A DROPOFF FROM TUESDAY'S 2529 MILLION SHARES ADVANCING ISSUES EDGED OUT DECLINERS 969 TO 938 WE'VE MOVED INTO THE SUMMER DOLDRUMS SAID RICHARD HOEY WHO MANAGES 780 MILLION OF ASSETS AT DREYFUS'S GROWTH & INCOME FUND DESPITE THE MARKET'S ANXIETY MR HOEY SAID HE THINKS THE DEFICITREDUCTION PACKAGE WHICH IS SET TO BE VOTED ON BY THE HOUSE TODAY AND BY THE SENATE TOMORROW WILL PASS MR HOEY NOTED THAT THE PRESIDENT HAS HINTED THAT HE WILL ASK CONGRESS TO STAY IN SESSION AND HAMMER OUT A COMPROMISE THROUGH AUGUST IF THE BILL IS DEFEATED THE THREAT OF KEEPING THE CONGRESS THROUGH AUGUST IS ENOUGH TO GET IT PASSED SAID MR HOEY AND EVEN IF THE BILL ISN'T PASSED MR HOEY SAID HE DOESN'T THINK THAT WILL BE THE WORST THING IN THE WORLD SURE THE BOND MARKET LIKELY WILL SLIDE BUT THE REACTION OF STOCK INVESTORS IS STILL UNCLEAR MR HOEY BELIEVES THAT RETAIL STOCKS WILL GET A LIFT IF THE BUDGET ACCORD IS DEFEATED UNDER ONE OF THE PROVISIONS OF THE BUDGET PACKAGE TAX INCREASES ON WEALTHY INDIVIDUALS AND COUPLES WILL BE MADE RETROACTIVE TO JAN 1 WHAT THEY ARE GOING TO DO WITH THE RETROACTIVITY IS THAT THEY ARE GOING TO TAKE CASH AWAY FROM HIGHER INCOME CONSUMERS WHO HELP GENERATE PROFITS FOR RETAILERS SAID MR HOEY ONE THING THAT COULD BOOST STOCKS IN COMING WEEKS IS THE PERVASIVE CLOUD OF BEARISHNESS SURROUNDING THE MARKET ACCORDING TO INVESTORS INTELLIGENCE A NEWSLETTER THAT TRACKS MARKET SENTIMENT 373 OF THE INVESTMENT ADVISERS SURVEYED THIS WEEK WERE BEARISH UP FROM 357 LAST WEEK RISING BEARISH READINGS ARE SEEN AS FAVORABLE FOR STOCKS SINCE THEY MEAN MORE INVESTORS ARE ACCUMULATING CASH THAT EVENTUALLY WILL BE PUT TO WORK IN THE MARKET BOOSTING PRICES ACCORDING TO A CONTRARIAN PERSPECTIVE HEWLETTPACKARD TUMBLED 3 1/4 TO 71 SMITH BARNEY SHEARSON LOWERED ITS INVESTMENT RATING ON THE COMPUTER GIANT TO NEUTRAL FROM BUY BUT OTHER TECHNOLOGY STOCKS FARED WELL COMPAQ JUMPED 1 1/4 TO 48 1/2 DIGITAL EQUIPMENT ADDED 1 TO 37 1/2 AND INTERNATIONAL BUSINESS MACHINES ROSE 1 TO 44 3/8 KMART WAS THE MOST ACTIVE STOCK ON THE BIG BOARD GAINING 1 TO 21 5/8 THE RETAILING CHAIN CONFIRMED THAT IT IS EXPLORING THE POSSIBLE SALE OF ITS PAYLESS DRUGSTORES UNIT THE WALL STREET JOURNAL REPORTED YESTERDAY THAT KMART HOPES TO SELL THE UNIT FOR AS MUCH AS 1 BILLION SEARS SURGED 2 TO 52 3/4 ANALYSTS ARE EXPECTING THE RETAILER TO REPORT STRONG SALES FOR JULY LOCKHEED PLUMMETED 4 TO 62 1/2 INVESTORS STARTED DUMPING THE AIRCRAFT CONCERN'S SHARES AFTER THE COMPANY TOLD ANALYSTS THAT IT PLANS TO CUT THE 1994 PRODUCTION SCHEDULE FOR THE F16 FIGHTER PLANE BY 45 TO 50 PLANES PHILIP MORRIS EASED 1/2 TO 47 FIVE DAYS BEFORE PRICE INCREASES WERE SET TO TAKE EFFECT THE FOOD AND TOBACCO GIANT SAID IT WILL INSTEAD CUT THE PRICE OF ITS DISCOUNT BRAND CIGARETTES STANDARD COMMERCIAL SLIPPED 3/4 TO 15 3/4 THE COMPANY SAID TUESDAY THAT IT EXPECTS TO REPORT A FISCAL FIRSTQUARTER LOSS OF 199 MILLION COMPARED WITH A PROFIT OF 53 MILLION AFTER A GAIN IN THE COMPARABLE PERIOD LAST YEAR THOSE RESULTS WILL INCLUDE A PRETAX CHARGE OF 18 MILLION FOR POSSIBLE LOSSES ON DISPOSAL OF INVENTORIES AND COSTS RELATED TO RESTRUCTURING SURPRISINGLY GOOD EARNINGS HELPED SOME STOCKS POST GAINS MANITOWOC LEAPED 1 3/8 TO 32 THE MAKER OF CRANES REPORTED THAT FOURTHQUARTER PROFIT SWELLED TO 84 CENTS A SHARE FROM 43 CENTS A SHARE A YEAR EARLIER DEPARTMENT 56 ADVANCED 1 7/8 TO 25 1/2 THE DESIGNER OF COLLECTIBLES SAID ITS SECONDQUARTER PROFIT CLIMBED TO 41 CENTS A SHARE FROM 33 CENTS A YEAR AGO SYSCO SOARED 1 7/8 TO 28 3/8 THE FOOD DISTRIBUTOR REPORTED THAT FISCAL FOURTHQUARTER EARNINGS ROSE TO 35 CENTS A SHARE FROM 27 CENTS A SHARE A YEAR AGO THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX FELL 087 OR 020 TO 43642 THERE WERE 303 DECLINERS AND 242 GAINERS 9308050050 930805 LAW LEGAL BEAT GM CAN'T BE FORCED INTO KEEPING PLANT OPEN APPEALS COURT SAYS BY KRYSTAL MILLER AND EDWARD FELSENTHAL STAFF REPORTERS OF THE WALL STREET JOURNAL THE TOWN OF YPSILANTI MICH CAN'T FORCE GENERAL MOTORS CORP TO KEEP ITS PLANT OPEN THERE A MICHIGAN APPEALS COURT RULED THE DECISION WHICH REVERSED A LOWERCOURT RULING IS A BLOW TO OTHER MUNICIPALITIES' ATTEMPTS TO PREVENT MAJOR EMPLOYERS FROM PULLING UP STAKE AND LEAVING TOWN THE OVERTURNED DECISION WHICH FOUND THAT THE COMPANY WAS BOUND BY ORAL PROMISES THAT LED YPSILANTI TO GRANT TAX ABATEMENTS HAD BEEN SEEN AS A HARBINGER OF SIMILAR SUITS AGAINST OTHER EMPLOYERS THE APPEALS COURT HOWEVER SAID GENERAL MOTORS WASN'T OBLIGATED TO KEEP THE PLANT RUNNING DESPITE THE YEARS OF TAX BREAKS IT HAD RECEIVED AS AN INCENTIVE TO STAY THE APPEALS COURT SAID THE COMPANY COULD ONLY HAVE BEEN OBLIGATED BY A SPECIFIC AGREEMENT TO STAY IN RETURN FOR THE TAX BREAKS THE MERE FACT THAT A CORPORATION SOLICITS A TAX ABATEMENT AND PERSUADES A MUNICIPALITY WITH ASSURANCES OF JOBS CANNOT BE EVIDENCE OF A PROMISE THE COURT SAID THE SIXPAGE RULING CLEARS THE WAY FOR GM TO SHUT THE YPSILANTI PLANT AND CONSOLIDATE PRODUCTION OF ITS LARGE REARDRIVE CARS AT ITS FACTORY IN ARLINGTON TEXAS THE AUTO MAKER HAD APPLIED FOR AND RECEIVED TAX BREAKS FROM YPSILANTI IN 1984 AND 1988 ON 250 MILLION IN INVESTMENTS AT GM'S WILLOW RUN ASSEMBLY PLANT WHICH BUILDS THE CHEVROLET CAPRICE SEDAN GM SAID THAT THANKS TO THE ABATEMENT THE INVESTMENT WAS TAXED AT 50 OF WHAT THE COMPANY OTHERWISE WOULD HAVE PAID GM'S ATTORNEY LEE A SCHUTZMAN SAID THE COURT OF APPEALS RULING IS CONSISTENT WITH THE DECISIONS OF ALL OTHER COURTS WHICH HAVE UNANIMOUSLY REJECTED SIMILAR EFFORTS TO HALT THE CLOSING OF INDUSTRIAL ASSEMBLY PLANTS THE MICHIGAN RULING DOESN'T APPLY IN OTHER STATES AND CAN BE APPEALED FURTHER BUT LAWYERS SAID THE DECISION IS LIKELY TO MAKE LOCAL GOVERNMENTS MORE CAREFUL TO DOCUMENT THE TAX BREAKS AND TO CREATE CONTRACTS BINDING COMPANIES TO STAY PUT FOR A SPECIFIED LENGTH OF TIME MUNICIPALITIES ARE GOING TO BE MORE VIGILANT THAN EVER TO STRUCTURE THE LOCAL TAX BREAKS IN A WAY THAT PROTECTS THEM AGAINST THIS KIND OF ACTIVITY IN THE FUTURE SAID JACK GUTHMAN AN ATTORNEY WITH SIDLEY & AUSTIN IN CHICAGO WHO HANDLES MUNICIPAL LAW CASES BUT SERIOUS QUESTIONS REMAIN ABOUT WHETHER A MUNICIPALITY CAN CONFINE A CORPORATION TO A SPECIFIC LOCATION EVEN WITH SUCH A CONTRACTUAL AGREEMENT THE RIGHT OF A COMPANY TO MOVE FREELY CANNOT BE CONTRACTED AWAY SAID BRIAN W BLAESSER A PARTNER AT LAW FIRM RUDNICK & WOLFE IN CHICAGO WHO HANDLES MUNICIPAL LAW CASES TAXABATEMENT AGREEMENTS HE SAID SHOULD INCLUDE SOME UNDERSTANDING THAT ECONOMIC FACTORS MAY SOMETIMES LEAD A COMPANY TO RELOCATE MR BLAESSER SAID A MORE FEASIBLE WAY FOR LOCAL GOVERNMENTS TO KEEP COMPANIES FROM MOVING OUT IS TO IMPOSE PENALTIES FOR RELOCATING ALREADY LOUISIANA OHIO AND TEXAS AS WELL AS SOME MUNICIPALITIES HAVE PASSED LAWS REQUIRING COMPANIES TO COMPENSATE MUNICIPALITIES FOR FINANCIAL INCENTIVES IF THEY MOVE OUT OF TOWN PREMATURELY IN 1991 ARLINGTON TEXAS WHERE GM IS CONSOLIDATING THE YPSILANTI PRODUCTION SIGNED A 10YEAR CONTRACT WITH GM UNDER WHICH THE CITY CAN SEEK TO RECOVER ALL THE ABATED TAXES IF GM CLOSES ITS PLANT WITHIN FIVE YEARS FOR CITIES AND TOWNS THAT HAVE ALREADY LOST EMPLOYERS SUCH MOVES DO LITTLE GOOD AND LOCAL GOVERNMENTS HAD VIEWED THE COURTS AS AN AVENUE FOR POSSIBLE RECOURSE FOR INSTANCE NEW YORK STATE'S COMMISSIONER OF ECONOMIC DEVELOPMENT VINCENT TESI HAD CONSIDERED SUING GM AFTER IT ANNOUNCED PLANS TO CLOSE A PLANT IN NORTH TARRYTOWN NY BUT IN THE AFTERMATH OF THE MICHIGAN COURT'S RULING THE CHANCES ARE MUCH LESS LIKELY THAT SUCH A SUIT WILL BE FILED SAID STEVEN VITOFF A SPOKESMAN FOR MR TESI IT HAD ALWAYS BEEN JUST ONE OF MANY OPTIONS AND TODAY IT'S CERTAINLY FAR LESS OF A VIABLE PURSUIT MR VITOFF SAID BUT STANLEY M CHESLEY A PARTNER WITH THE CINCINNATI LAW FIRM WAITE SCHNEIDER BAYLESS & CHESLEY WHICH REPRESENTED THE TOWN OF NORWOOD OHIO IN A SIMILAR SUIT OVER A 1987 PLANT CLOSING PREDICTED THAT THE MICHIGAN RULING MAY BE OVERTURNED BY THE STATE'S SUPREME COURT ALTHOUGH HE LOST HIS CASE AS WELL MR CHESLEY SAID HE EXPECTS COURTS EVENTUALLY WILL FOLLOW DECISIONS IN OTHER AREAS OF CONTRACT LAW WHICH HAVE ENFORCED ORAL PROMISES MADE TO PARTIES THAT RELIED ON THEM TO THEIR DETRIMENT I BELIEVE THIS IS THE CUTTING EDGE OF WHERE THE COURTS WILL EVENTUALLY GO HE SAID I THINK WHAT'S HOLDING THE COURTS BACK IS THEIR FEAR THAT THIS WILL BE AN ENCOURAGEMENT FOR MAJOR COMPANIES TO SAY WE'RE NOT GOING TO BUILD A PLANT IN YOUR NEIGHBORHOOD FOR FEAR THAT WE'LL GET STUCK LAWYERS FOR ATTORNEY ROBERT ALTMAN ACCUSED OF COMMITTING FRAUD ON BEHALF OF SCANDALRIDDEN BCCI USED THEIR CLOSING ARGUMENTS TO QUESTION THE MOTIVES OF PROSECUTORS AND REGULATORS IN THE CASE GUSTAVE NEWMAN TOLD JURORS IN STATE COURT IN NEW YORK THAT MR ALTMAN AND CLARK CLIFFORD AN ADVISER TO FIVE PRESIDENTS WHO WAS MR ALTMAN'S LAW PARTNER AND MENTOR HAD BEEN MADE SCAPEGOATS FOR THE FAILURE OF BANKING REGULATORS' TO OVERSEE BANK OF CREDIT & COMMERCE INTERNATIONAL THE CLOSING ARGUMENTS PROVIDED THE MOST DETAILED DEFENSE YET TO CHARGES THAT MESSRS CLIFFORD AND ALTMAN COMMITTED FRAUD BY HELPING BCCI SECRETLY AND ILLEGALLY TAKE OVER FIRST AMERICAN BANKSHARES INC A WASHINGTON BANK WITH SIGNIFICANT OPERATIONS IN NEW YORK STATE BCCI A UNIT OF BCCI HOLDINGS LUXEMBOURG SA HAS SINCE COLLAPSED UNDER ALLEGATIONS OF MASSIVE FRAUD BY ITS TOP OFFICIALS LEADING TO QUESTIONS ABOUT HOW IT COULD HAVE BEEN ALLOWED TO BE INVOLVED WITH A BANK AS LARGE AS FIRST AMERICAN MESSRS CLIFFORD AND ALTMAN HAVE MAINTAINED THAT THEY WERE DUPED ALONG WITH EVERYONE ELSE INTO THINKING THAT THE MIDDLE EASTERN INVESTORS WHO BOUGHT FIRST AMERICAN WERE INDEPENDENT OF BCCI MR ALTMAN'S LAWYERS WERE BOLDER IN THEIR CLOSING ARGUMENTS TELLING THE JURY THAT MR ALTMAN AND MR CLIFFORD KEPT FEDERAL REGULATORS INFORMED OF WHAT THEY KNEW ABOUT BCCI'S INVOLVEMENT BUT THAT REGULATORS FAILED TO ACT MR ALTMAN INITIALLY WAS CHARGED WITH ONE COUNT OF SCHEMING TO DEFRAUD REGULATORS ABOUT BCCI'S CONTROL OF FIRST AMERICAN ONE COUNT OF ACCEPTING BRIBES IN THE FORM OF SPECIAL LOANS LEGAL FEES AND STOCK DEALS AND SIX COUNTS OF FILING FALSE FORMS WITH REGULATORS BUT STATE JUDGE JOHN AK BRADLEY LAST WEEK DISMISSED THE BRIBERY COUNT AND THREE OF THE FALSEFILING COUNTS AFTER THE PROSECUTION RESTED ITS CASE MR CLIFFORD WHO WAS INDICTED ON SIMILAR CHARGES ISN'T ON TRIAL BECAUSE HE HAS BEEN ILL TAKING ADVANTAGE OF JUDGE BRADLEY'S DISMISSAL OF THE BRIBERY COUNT MR NEWMAN TOLD JURORS THAT WITHOUT THE ALLEGED BRIBE THERE WAS NO MOTIVE FOR ANY WRONGDOING BY MR ALTMAN MR NEWMAN ALSO ATTEMPTED TO CLOAK MR ALTMAN IN THE PRESTIGE OF MR CLIFFORD TELLING JURORS TO ASK THEMSELVES WHY WOULD MR CLIFFORD RISK ALL HIS PRESTIGE AND SIT DOWN WITH A BUNCH OF MIDDLE EASTERN STRANGERS AND SAY OK GUYS LET'S COMMIT A FRAUD' THE PROSECUTION IS EXPECTED TO BEGIN ITS CLOSING STATEMENT TODAY WHO'S NEWS WILLIAM BRANIFF FORMER US ATTORNEY IN SAN DIEGO HAS JOINED LOS ANGELES LAW FIRM LATHAM & WATKINS IN ITS SAN DIEGO OFFICE WHERE HE WILL BE OF COUNSEL LINDA J FISHER A FORMER ASSISTANT ADMINISTRATOR WITH THE ENVIRONMENTAL PROTECTION AGENCY HAS JOINED THE LAW FIRM IN ITS WASHINGTON OFFICE AS ENVIRONMENTAL COUNSEL JONATHAN M MOSES CONTRIBUTED TO THIS ARTICLE 9308050049 930805 TECHNOLOGY BRIEF DELL COMPUTER CORP BEST BUY CO STORES TO CARRY PERSONAL COMPUTER LINES DELL COMPUTER CORP IN ITS LATEST RETAIL EXPANSION IS SELLING THREE LINES OF ITS MACHINES THROUGH BEST BUY CO'S 117 US STORES THE AUSTIN TEXAS MAILORDER COMPUTER MAKER SAID THAT LAST WEEK IT BEGAN SELLING THROUGH BEST BUY OUTLETS THREE PERSONAL COMPUTERS INCLUDING ONE WITH A MULTIMEDIA PACKAGE BASED ON THE 486 MICROPROCESSOR CHIP THE MOVE IS PART OF A MONTHSLONG RETAIL PUSH AT DELL WHICH ONCE SOLD ITS MACHINES ONLY THROUGH THE MAIL THE COMPANY HOPING TO SNAG MORE HOME AND SMALLBUSINESS USERS HAS BEGUN OFFERING ITS PCS THROUGH WALMART STORES INC WALMART'S SAM'S CLUB UNIT PRICE CO STAPLES INC AND COMPUSA INC MINNEAPOLISBASED BEST BUY WITH STORES IN 16 CENTRAL US STATES SELLS ABOUT 700 MILLION IN COMPUTER PRODUCTS A YEAR THE COMPANY SAID 9308050048 930805 TECHNOLOGY BELL ATLANTIC TAKES ON CABLE IN WIRELESS PACT BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL BELL ATLANTIC CORP ANNOUNCED AN ALLIANCE WITH A TINY NEW JERSEY COMPANY TO BLANKET THE NEW YORK CITY AREA WITH AN INTERACTIVE WIRELESS TELEVISION SERVICE THAT WOULD COMPETE WITH CABLE TV THE ALLIANCE WITH CELLULARVISION OF NEW YORK INC WILL USE AN INNOVATIVE MICROWAVE TECHNOLOGY TO COMPETE HEADTOHEAD WITH CABLE SYSTEMS IN NEW YORK'S FIVE BOROUGHS AND THREE NEIGHBORING COUNTIES EVENTUALLY IT COULD ALSO COMPETE WITH NYNEX CORP'S NEW YORK TELEPHONE UNIT OFFERING AN ARRAY OF ADVANCED TELEPHONE AND DATA SERVICES THE DIGITAL SYSTEM PUNCTURES CONVENTIONAL WISDOM THAT FUTURE MULTIMEDIA SERVICES WILL BE DELIVERED OVER CABLE OR PHONE WIRES INTO HOMES AND BUSINESSES IT MAKES USE OF A FLAT FOURSQUAREINCH ANTENNA THAT'S MOUNTED ON A WINDOW AND THAT COSTS ABOUT HALF AS MUCH TO INSTALL AS CABLE NONETHELESS RICHARD AURELIO PRESIDENT OF TIME WARNER INC'S TIME WARNER NEW YORK CITY CABLE GROUP SAID CELLULARVISION'S TECHNOLOGY DOESN'T POSE ANY IMMEDIATE COMPETITIVE THREAT IT HAS SEVERE LIMITATIONS INCLUDING LIMITED CHANNEL CAPACITY AND PROBLEMS WITH SIGNAL QUALITY AND RELIABILITY HE SAID THE NEW TECHNOLOGY WAS INVENTED BY BERNARD BOSSARD A COFOUNDER OF CELLULARVISION OF NEW YORK INC THE FREEHOLD NJ PARTNERSHIP INCLUDES REALESTATE DEVELOPERS VAHAK HOVNANIAN AND HIS SON SHANT BELL ATLANTIC HOLDS A MINORITY STAKE AND HAS A MANAGEMENT CONTRACT TO BUILD AND OPERATE THE TV SERVICE TERMS OF THE PACT WEREN'T DISCLOSED A SISTER COMPANY CELLULARVISION TECHNOLOGIES & TELECOMMUNICATIONS INC HOLDS THE PATENTS ON THE NEW TECHNOLOGY WHICH COULD OPEN THE WAY FOR LOCAL PHONE COMPANIES TO PROVIDE TWOWAY VIDEO SERVICES AND OTHER ADVANCED TELECOMMUNICATIONS INCLUDING HIGHSPEED DATA SERVICES MOVIES ON DEMAND AND VIDEOTELECONFERENCING SERVICES IN THE FUTURE IT ALSO COULD BE USED TO PROVIDE ORDINARY PHONE SERVICE FOR RESIDENTIAL AND BUSINESS CUSTOMERS FOR THE NEXT YEAR OR SO CELLULARVISION OF NEW YORK WILL BE THE SOLE USER OF THE TECHNOLOGY LAST DECEMBER CELLULARVISION WAS AWARDED A SPECIAL FCC LICENSE FOR PIONEERING THE TECHNOLOGY THE LICENSE COVERS OPERATIONS IN THE FIVE BOROUGHS OF NEW YORK ALONG WITH WESTCHESTER ROCKLAND AND PUTNAM COUNTIES WHEN IT GRANTED THE LICENSE THE FCC PROPOSED SETTING UP A NEW TELECOMMUNICATIONS SERVICE USING THE 28 GIGAHERTZ BANDA FREQUENCY THAT HAS BEEN CONSIDERED TOO HIGH TO BE USEFUL FOR COMMERCIAL PURPOSES BUT THE FCC IS LIKELY TO TAKE A YEAR OR SO TO ADOPT RULES DEFINING THE NEW SERVICE AND TO SET UP PROCEDURES FOR AUCTIONING THE SPECTRUM TO COMPANIES THAT WOULD BUILD LOCAL SYSTEMS UNLIKE CABLE TV THE CELLULARVISION SYSTEM SENDS TV SIGNALS THROUGH THE AIR AT VERY HIGH FREQUENCIES THE 275 TO 295 GIGAHERTZ MICROWAVE BAND THE NETWORK USES A SERIES OF TRANSMITTERS EACH OF WHICH IS CAPABLE OF BROADCASTING A DIGITAL SIGNAL WITHIN A SIXMILE RADIUS THE SIGNAL IS PICKED UP AT EACH SUBSCRIBER'S HOUSE BY THE WINDOWMOUNTED ANTENNA WHICH IS CONNECTED BY COAXIAL CABLE THE TYPE OF WIRING USED BY CABLETV COMPANIES TO A DECODER THAT SITS ON TOP OF THE TV SET ALTHOUGH IT COULD TAKE HUNDREDS OF TRANSMITTERS TO SERVE THE NEW YORK REGION A MICROWAVE NETWORK WOULD COST FAR LESS TO BUILD THAN STRINGING FIBEROPTIC OR COAXIAL CABLE PAST THE HOMES OR OFFICES OF EVERY POTENTIAL CUSTOMER THE PARTNERSHIP HAS BEEN PROVIDING 49 CHANNELS OF CABLETV PROGRAMMING INCLUDING SOME PREMIUM CHANNELS TO ABOUT 200 CUSTOMERS IN BROOKLYN'S BRIGHTON BEACH NEIGHBORHOOD FOR 2995 A MONTH SUBSTANTIALLY LESS THAN COMPARABLE CABLETV SERVICE AT A NEWS CONFERENCE ANNOUNCING THE PARTNERSHIP WITH BELL ATLANTIC SHANT HOVNANIAN SAID CELLULARVISION WOULD LIKE TO BEGIN MARKETING THE SERVICE NEXT YEAR THE COMPANY'S MAIN FOCUS SO FAR THIS YEAR HAS BEEN FINDING A STRATEGIC PARTNER MR HOVNANIAN SAID CELLULARVISION NOW WILL TURN TO THE TASK OF DEVELOPING A PLAN TO ROLL OUT THE SERVICE WE PLAN TO HAVE THE SERVICE AVAILABLE TO AS MANY AREAS AS WE CAN GET TO OVER THE NEXT TWO YEARS HE SAID A PARTNER LIKE BELL ATLANTIC HE SAID WILL LET THE COMPANY BUILD THE NETWORK RELATIVELY QUICKLY BRIAN OLIVER PRESIDENT OF BUSINESS DEVELOPMENT FOR BELL ATLANTIC'S BELL ATLANTIC ENTERPRISES INTERNATIONAL UNIT DECLINED TO DISCUSS THE COST OF BUILDING THE NEW YORK SYSTEM OR TO SPECULATE ON HOW LONG IT MIGHT ACTUALLY TAKE WE WILL DEVELOP PLANS PURSUE THE MARKET BASED ON THOSE PLANS TAKE A LOOK AT WHERE WE ARE IN TWO YEARS HE SAID BUT TIME WARNER'S MR AURELIO NOTED THAT THE HIGH END OF THE FREQUENCY SPECTRUM HAS NEVER BEEN USED BEFORE FOR GOOD REASON ADDING THAT THE SIGNAL TENDS TO FADE IN INCLEMENT WEATHER CELLULARVISION IS CLAIMING THEY'VE GOT SOME OF THESE PROBLEMS LICKED BUT IT IS UNPROVEN HE SAID TIME WARNER ALONG WITH U S WEST INC HAS EMBARKED ON A 5 BILLION PROJECT TO UPGRADE ITS CABLE SYSTEMS TO PROVIDE INTERACTIVETV AND TELEPHONE SERVICES 9308050047 930805 BUSINESS BRIEF PEP BOYS CHAIN'S CEO COMFORTABLE' WITH EARNINGS ESTIMATES PEP BOYSMANNY MOE & JACK'S PRESIDENT AND CHIEF EXECUTIVE SAID HE IS COMFORTABLE WITH ANALYSTS' ESTIMATES THAT THE COMPANY EARNED 30 TO 32 CENTS A SHARE IN THE FISCAL SECOND QUARTER ENDED JULY 31 UP FROM 27 CENTS A SHARE A YEAR EARLIER MITCHELL G LEIBOVITZ SAID EARNINGS ROSE DESPITE A SLUGGISH RETAIL ENVIRONMENT AND DECLINING RETAIL SALES OF FREON A COOLANT USED IN AIR CONDITIONERS OUR EARNINGS WILL BE STRONGER THAN OUR SALES SITUATION WOULD LEAD ONE TO BELIEVE BECAUSE OF NUANCES OF MARGIN AND BECAUSE WE'VE DONE A REASONABLY GOOD JOB OF CONTROLLING EXPENSES HE SAID THE PHILDELPHIA COMPANY OPERATES A CHAIN OF 360 AUTO PARTS AND SERVICE STORES IN 22 STATES IN THE YEAREARLIER QUARTER PEP BOYS POSTED NET INCOME OF 167 MILLION ON SALES OF 3092 MILLION 9308050046 930805 BUSINESS BRIEF DEVON ENERGY CORP FIRM EXPECTS TO REPORT NET SOARED IN SECOND QUARTER DEVON ENERGY CORP BOLSTERED BY THE ADDITIONAL PRODUCTION OF OIL AND GAS PROPERTIES ACQUIRED DURING THE LAST YEAR EXPECTS TO REPORT THAT SECONDQUARTER EARNINGS ROUGHLY QUADRUPLED ALLEN TURNER VICE PRESIDENT OF CORPORATE DEVELOPMENT SAID THE OKLAHOMA CITY OIL AND GAS EXPLORATION AND PRODUCTION COMPANY SAID IT EXPECTS TO REPORT THAT QUARTERLY NET INCOME ROSE IN LINE WITH MANY ANALYSTS' FORECASTS REACHING THE RANGE OF 5 MILLION OR 24 CENTS A COMMON SHARE TO 55 MILLION OR 26 CENTS A SHARE COMPARED WITH 13 MILLION OR EIGHT CENTS A SHARE A YEAR EARLIER PERSHARE FIGURES HAVE BEEN ADJUSTED TO REFLECT AN INCREASE IN COMMON SHARES OUTSTANDING TO 208 MILLION FROM 87 MILLION A YEAR EARLIER SECONDQUARTER REVENUE NEARLY TRIPLED TO THE RANGE OF 236 MILLION TO 261 MILLION COMPARED WITH 94 MILLION A YEAR AGO THE INCREASE IN QUARTERLY EARNINGS EXCEEDS THE RISE IN REVENUE SAID MR TURNER BECAUSE EXPENSES AREN'T GOING UP AS FAST AS THE REVENUE STREAM 9308050045 930805 BUSINESS BRIEF LOEWS CORP SECONDPERIOD NET FELL 23 INSURANCE AND TOBACCO CITED LOEWS CORP REPORTED A 23 DECLINE IN SECONDQUARTER NET INCOME REFLECTING LOWER INSURANCE PREMIUMS AND TOBACCOPRODUCTS INCOME THE NEW YORK HOTELS BROADCASTING SHIPPING AND INSURANCE CONCERN SAID NET FELL TO 2036 MILLION OR 316 A SHARE FROM THE YEAREARLIER 2662 MILLION OR 406 A SHARE THE 22 DECLINE IN PERSHARE PROFIT REFLECTS THE PURCHASE BY LOEWS OF 11 MILLION OF ITS COMMON SHARES IN THE FIRST HALF OF 1993 REVENUE FELL 2 TO 338 BILLION FROM 344 BILLION LOEWS SAID EARNINGS FROM ITS PROPERTY AND CASUALTY INSURANCE BUSINESSES PLUNGED 53 TO 376 MILLION PROFIT FROM ITS CIGARETTE BUSINESS FELL TO 3 TO 1282 MILLION BECAUSE OF COMPETITION IN THE CIGARETTE INDUSTRY LOEWS STOCK FELL 25 CENTS OR 03 TO CLOSE AT 88125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9308050044 930805 BUSINESS BRIEF NUCLEAR METALS INC DEFENSE CUTS DISPUTE CITED IN LOSS FOR FISCAL 3RD PERIOD NUCLEAR METALS INC CITING DECLINES IN DEFENSE SPENDING AND A CONTRACT DISPUTE WITH A CUSTOMER REPORTED A FISCAL THIRDQUARTER LOSS ON A 64 SALES DROP AND SAID IT EXPECTS TO REPORT LOSSES THROUGH THE FIRST QUARTER OF FISCAL 1994 THE CONCORD MASS COMPANY SAID ITS LOSS FOR THE THIRD QUARTER ENDED JUNE 30 WAS 4 MILLION OR 174 A SHARE INCLUDING A CHARGE FOR A PLANNED WORK FORCE REDUCTION OF 25 TO TAKE EFFECT IN THE FOURTH QUARTER IN THE YEARAGO THIRD QUARTER THE MAKER OF SPECIALIZED METAL PRODUCTS HAD NET INCOME OF 348000 OR 15 CENTS A SHARE SALES FELL TO 39 MILLION FROM 107 MILLION A SPOKESMAN SAID ABOUT 60 POSITIONS OUT OF A TOTAL WORK FORCE OF 240 WILL BE ELIMINATED IN THE FISCAL FOURTH QUARTER HE DECLINED TO QUANTIFY THE CHARGE FOR THE ANTICIPATED LAYOFFS THE COMPANY SAID IT EXPECTS TO REPORT A LOSS FOR ITS FISCAL YEAR ENDING SEPT 30 BUT ANTICIPATES A RETURN TO PROFITABILITY IN THE SECOND OR THIRD QUARTER OF FISCAL 1994 FOR ITS FISCAL YEAR ENDED SEPT 30 1992 THE COMPANY HAD NET INCOME OF 921000 OR 40 CENTS A SHARE ON SALES OF 42 MILLION 9308050043 930804 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 9308050042 930805 BUSINESS BRIEF LEEDS PERMANENT FIRM NATIONAL & PROVINCIAL PLAN TO COMBINE OPERATIONS TWO OF BRITAIN'S LEADING BUILDING SOCIETIES LEEDS PERMANENT AND NATIONAL & PROVINCIAL PLAN TO MERGE WITH MORE THAN 31 BILLION 4658 BILLION IN ASSETS THE MERGED ORGANIZATION WILL RANK THIRD AMONG BRITAIN'S MORE THAN 100 BUILDING SOCIETIES OR THRIFTS THE MERGER'S IMPACT WILL BE FELT NOT ONLY BY OTHER BUILDING SOCIETIES BUT ALSO BY BRITAIN'S COMMERCIAL BANKS WHICH COMPETE WITH BUILDING SOCIETIES FOR DEPOSITS AND MORTGAGELOAN BUSINESS THE COMBINED OPERATION WHICH WILL RETAIN THE LEEDS PERMANENT NAME WILL START OUT WITH AROUND 770 BRANCHES MANY OF THEM IN NORTHERN ENGLAND WHERE BOTH SOCIETIES ARE BASED IN A DRIVE TO CUT COSTS THE TWO SOCIETIES SAID THEY WILL CLOSE DOZENS OF OVERLAPPING BRANCHES AND ELIMINATE AS MANY AS 1600 JOBS 16 OF THEIR COMBINED WORK FORCE WITH ASSETS OF ABOUT 19 BILLION AND 5591 EMPLOYEES LEEDS PERMANENT IS CURRENTLY BRITAIN'S FIFTHLARGEST BUILDING SOCIETY N&P WITH ASSETS OF MORE THAN 12 BILLION AND 4231 EMPLOYEES IS THE EIGHTH LARGEST IN 1992 LEEDS ACCOUNTED FOR JUST UNDER 5 OF NET NEW MORTGAGE ADVANCES IN BRITAIN AND N&P 59 9308050041 930805 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN HELP WANTED EMPLOYMENT AGENCIES SEEK WAYS TO WEATHER WORKFORCE CHANGES PERSONNEL FIRMS ADD OR EXPAND TEMPORARYHELP SERVICES TO CAPITALIZE ON THE TREND TO USE PARTTIME WORKERS OTHERS SPECIALIZE BUT PROFITS CAN LANGUISH BABICH & ASSOCIATES IN DALLAS ADDED A TEMP AND PARTTIME BRANCH IN 1990 THAT NOW RIVALS ITS PERMANENT LINE IN REVENUES BUT PROFIT MARGINS AREN'T AS HIGH APPLEONE EMPLOYMENT IN CALIFORNIA SAYS THE RECENT TREND HELPED THEIR REVENUES RISE 25 BUT PROFITS HAVE NEVER BEEN LOWER DUE TO AGENCY PRICE WARS SAYS PRESIDENT BERNIE HOWROYD A CORPORATE MOVE TO FARM OUT TASKS SUCH AS TRAINING HELPS FIRMS LIKE OLSTEN CORP WESTBURY NY SAYS FRANK LIQUORI CHAIRMAN HE SAYS BUSINESS IS UP 2530 FROM LAST YEAR BOSTON'S ROUTHIER PLACEMENT SPECIALISTS ALSO SEES A SIGNIFICANT PICKUP IN BUSINESS THIS YEAR MOSTLY IN TEMPS BUT WITH SOME RISE IN PERMANENT HIRES TOO DITTO FOR BOSTON'S DANIEL ROBERTS INC BUT IT NOTES RIVALRY AMONG AGENCIES HAS SHARPENED BURNETT PERSONNEL IN HOUSTON RECRUITS SENIORS FOR OFFICE JOBS TAPPING CIVIC GROUPS AND CHURCHES FOR LEADS ONE GRANTREQUEST FORMAT FOR ALL A STANDARD APPLICATION WINS SOME SUPPORT DUBBED THE BIG APPLECATION BY ONE FOUNDATION WAG A COMMON GRANT APPLICATION WILL BE TRIED BY SEVERAL MEMBERS OF THE NEW YORK REGIONAL ASSOCIATION OF GRANTMAKERS THE IDEA IS TO SIMPLIFY THE PROCESS FOR GRANTSEEKERS WHO WOULD ANSWER A STANDARD SET OF QUERIES ORGANIZED IN A SINGLE FORMAT WE RECOGNIZED WHAT THE NONPROFITS HAVE BEEN SAYING SOMETIMES WE PUT THEM THROUGH HOOPS SAYS BARBARA BRYAN HEAD OF THE NEW YORK REGIONAL GROUP A HANDFUL OF OTHER REGIONAL GRANTMAKERS ALREADY USE SUCH A FORM CHEMICAL BANK LIKED USING PHILADELPHIA'S COMMON FORMAT SO THE BANK BACKS ITS USE ELSEWHERE MADELINE LEE OF THE NEW YORK FOUNDATION WAVES OFF SOME FUNDERS' WORRIES THAT THE FORMAT MAY BREED MANY UNFOCUSED REQUESTS SHE NOTES APPLICANTS MUST STILL DO THEIR HOMEWORK BIG NATIONAL FUNDERS MAY BE LESS WILLING TO TRY THE MODE BACKERS SAY FURNITURE STORES HAMMER PRICES EVEN AS MANUFACTURERS TRY TO RAISE THEM WHEN SOME FURNITURE MAKERS INCREASED PRICES 38 LAST APRIL ABC CARPET & HOME IN NEW YORK INCREASED ITS BUYING ABROAD A STRONGER DOLLAR TRANSLATES INTO LOWER COSTS FOR THE RETAILER SAYS ABC PRESIDENT EVAN COLE PARTLY AS A RESULT ABC'S PRICES THIS FALL WILL BE 10 LOWER THAN A YEAR AGO AND IN OMAHA NEB FURNITURE MART NEGOTIATES AGGRESSIVELY TO KEEP PRICES DOWN OR WE JUST DON'T BUY SAYS A MART EXECUTIVE RETAILERS HOPE TO BLUNT THE HIKES IN ORDER TO ENCOURAGE SHOPPERS WHO EASED BACK INTO THE MARKET AFTER THE ELECTION BUT HAVE SINCE EASED OUT AGAIN AS ECONOMIC WORRIES RECUR BUT BRITT BEEMER OF AMERICA'S RESEARCH GROUP IN SOUTH CAROLINA SAYS STORES MAY HAVE TO RAISE PRICES BY FALL IF MANUFACTURERS DON'T ROLL THEM BACK ANALYST WALLACE EPPERSON IN RICHMOND VA PARES HIS OUTLOOK ON '93 FURNITURE SALES TO A GAIN OF 7 FROM A DOUBLEDIGIT RISE SEEN EARLIER STRETCHING A DEADLINE TURNS INTO AN ADVERTISING STRATEGY FOR GLOBAL FINANCE THE MONTHLY MAGAZINE JULY CAME OUT LAST WEEK PROMOTES ITS AUGUST ISSUE BY TELLING ADVERTISERS THE PERIODICAL WON'T BE MAILED UNTIL SEPTEMBER THE IDEA IS TO COMBAT BIAS AGAINST THE AUGUST VACATIONTIME ISSUE SAYS JOE GIRRAPUTO PUBLISHER BARELY BEARING' SOME INTERESTPAYING CHECKING ACCOUNTS DIP BELOW 1 SAYS BANK RATE MONITOR HOUSEHOLD BANK OF NEWPORT CALIF PAYS 050 ON CERTAIN BALANCES AND SAN FRANCISCOBASED FIRST NATIONWIDE BANK PAYS 0995 ON SOME CHICAGO ACCOUNTS THE AVERAGE US RATE IS 178 DOWN FROM 231 A YEAR AGO SAYS THE MONITOR WORK HERE INVEST HERE FIRMS EXPECT TOP EXECUTIVES TO BE MAJOR SHAREOWNERS SAYS CONSULTANT TOWERS PERRIN NEW YORK IT SAYS NEARLY 75 OF POLLED FIRMS HAVE OR FAVOR PROGRAMS TO INCREASE HOLDINGS BY BOSSES SOME 16 OF THE FIRMS ALREADY HAVE GUIDELINES OR ARE IN THE PROCESS OF ADOPTING SUCH RULES MORE STATES CONSIDER INSURANCE PROGRAMS TO HELP PAY FOR ELDERLY NURSING CARE SOME 13 STATES HAVE PASSED LAWS SETTING GROUNDWORK FOR INSURANCE PLANS THAT ENABLE THE ELDERLY TO RECEIVE NURSING CARE WITHOUT DEPLETING SAVINGS SUCH PROGRAMS LET PEOPLE SHELTER ASSETS VIA AN INSURANCE POLICY THAT PAYS FOR THE INITIAL YEARS OF NURSING CARE THE PARTNERSHIP MINGLES PRIVATE AND PUBLIC FUNDS FIRST INSURANCE PAYS THEN MEDICAID DOES SO FAR ONLY CONNECTICUT NEW YORK AND INDIANA PART OF A ROBERT WOOD JOHNSON FOUNDATION PILOT PROGRAM OFFER THE PLANS UNDER MEDICAID THE AGED MUST SPEND DOWN ASSETS THE CONNECTICUT MODEL PLAN LETS THE ELDERLY SHELTER ASSETS DOLLARFORDOLLAR AGAINST THE INSURANCE PAYOUT ON AVERAGE A 65YEAROLD MAY PAY 400 FOR ONE YEAR'S COVERAGE IN NEW YORK WHERE NURSING COSTS ARE HIGH A POLICY MAY COST 1600 A YEAR BUT ASSETS AVOID MEDICAID'S SPEND DOWN BOTH PLANS ARE CONTROVERSIAL AND SOME LEGISLATORS SEEKS TO LIMIT THEM FINGER LAKES LONG TERM CARE INSURANCE CO ONE OF THE NEW YORK OFFERERS HELD SEMINARS TO EXPLAIN THE PLAN BRIEFS FRUIT OF THE LOOM INC'S ANNUAL REPORT SENT TO ANALYSTS AND OTHER VIPS INCLUDED A TRADEMARK TSHIRT EMBLAZONED WITH THE FIRM'S FINANCIAL HIGHLIGHTS A WORKING MAYTAG WRINGERWASHER CIRCA 1921 WINS MAYTAG CO'S VINTAGE WASHER CONTEST AND NETS 1000 FOR ITS OWNERS 9308050040 930805 PERSONAL TECHNOLOGY BY WALTER M MOSSBERG THE NEWTON HANDHELD PERSONAL DIGITAL ASSISTANT FROM APPLE COMPUTER IS AN INGENIOUS ELECTRONIC DEVICE UNLIKE ANY OTHER I'VE USED IT REPRESENTS AN AMBITIOUS AND LARGELY SUCCESSFUL ATTEMPT TO CHANGE THE WAY PEOPLE USE COMPUTERS BY MAKING SMALL BITS OF INFORMATION INCLUDING NOTES APPOINTMENTS NAMES AND ADDRESSES EASIER AND MORE NATURAL TO ORGANIZE AND COMMUNICATE AFTER TWO WEEKS OF WORKING WITH A NEWTON I REGARD IT AS THE FIRST PENBASED COMPUTER THAT WORKS REALLY WELL PARTLY BECAUSE IT HAS BY FAR THE BEST HANDWRITING RECOGNITION I HAVE SEEN IN A COMPUTER IT EVEN HANDLES CURSIVE SCRIPT IT CAN SEND FAXES AND ELECTRONIC MAIL AND IS THE FIRST COMPUTER I'VE SEEN THAT ROUTINELY ACCEPTS COMMANDS IN PLAIN ENGLISH I WOULD DESCRIBE IT AS A POSTPC DEVICE THAT STREAMLINES DATA ENTRY LINKS ALL OF YOUR INFORMATION IN INTELLIGENT WAYS AND ADAPTS TO YOUR HANDWRITING AND WORK HABITS OVER TIME YET THE FIRST NEWTON MODEL THE 699 MESSAGEPAD FALLS SHORT OF THE EXPECTATIONS RAISED BY APPLE'S RELENTLESS ADVANCE PUBLICITY MAINLY BECAUSE MANY OF THE SEXY COMMUNICATIONS FEATURES WON'T BE AVAILABLE FOR MONTHS AND WON'T BE INCLUDED IN THE BASIC MODEL AND THE HANDWRITING RECOGNITION WHILE STARTLINGLY GOOD FOR A MACHINE IS PROBABLY STILL A BIT TOO IMPERFECT FOR MOST PEOPLE FOR THOSE REASONS I THINK THIS FIRST IN A PLANNED SERIES OF NEWTON PRODUCTS IS TOO EXPENSIVE WHEN FULLY EQUIPPED AND A BIT TOO EXOTIC TO APPEAL TO MAINSTREAM BUSINESSPEOPLE IT'S LIKELY TO ATTRACT MAINLY THOSE WHO LOVE NEW TECHNOLOGY OR WHO ALREADY RELY ON A PORTABLE COMPUTER OR POCKET ELECTRONIC ORGANIZER THIS WEEK I'LL DESCRIBE THE MESSAGEPAD AND REVIEW ITS HANDWRITING RECOGNITION NEXT WEEK I'LL EXPLAIN NEWTON'S PATHBREAKING INTELLIGENT ASSISTANT SYSTEM WHICH SEEKS TO ANTICIPATE USERS' COMMANDS FOR ENTERING AND TRANSMITTING INFORMATION THIS TECHNOLOGY PROBABLY WILL APPEAR IN A SERIES OF DEVICES BEARING THE NEWTON LOGO FROM APPLE AND FROM OTHER COMPANIES THAT HAVE LICENSED THE NEWTON SOFTWARE SHARP WHOSE FACTORIES BUILD THE APPLE PRODUCT WILL SOON INTRODUCE ITS OWN NEARLY IDENTICAL NEWTON CALLED THE EXPERT PAD THE MESSAGEPAD HAS A QUALITY FEEL IT PACKS A LOT OF POWER INTO A ONEPOUND PACKAGE ABOUT THE SIZE OF A VIDEOCASSETTE THAT FITS IN A MAN'S COAT POCKET OR A MIDSIZED WOMAN'S PURSE IT RUNS ON FOUR STANDARD AAA ALKALINE BATTERIES WHICH APPLE SAYS WILL LAST FOR AS MUCH AS TWO WEEKS OF INTERMITTENT USE IT CAN ALSO USE RECHARGEABLE BATTERIES THERE'S A BUILTIN NOTE PAD APPOINTMENT BOOK AND ADDRESS BOOK YOU ENTER DATA BY WRITING ON THE SCREEN WITH A PLASTIC STYLUS THERE'S NO CRAMPED KEYBOARD AS ON OTHER ORGANIZERS BUT THE BASE 699 UNIT HAS NO COMMUNICATIONS FEATURES EXCEPT AN INFRARED TRANSMITTER THAT LETS YOU BEAM DATA TO OR FROM ANOTHER NEWTON OR A SHARP WIZARD A CLUNKY EXTERNAL FAX MODEM COSTS AN ADDITIONAL 100 AND SOFTWARE AND CABLES FOR LINKING TO A MACINTOSH OR WINDOWSCOMPATIBLE PC ADD 150 FOR A TOTAL OF 949 THE MINIMUM USEFUL PACKAGE IN MY VIEW ADDING AN EXTRA MEMORY CARD OR OTHER POPIN MODULES THAT LET THE UNIT RECEIVE MESSAGES FROM PAGERS OR RUN ADDON PROGRAMS BOOSTS THE PRICE BY HUNDREDS MORE WITH ACCESSORIES LIKE THE BATTERY PACK AND AC ADAPTER THE WHOLE THING CAN RUN NEARLY 1500 SOME FEATURES AREN'T READY YET AT ANY PRICE A WIRELESS MODEM ISN'T LIKELY FOR SEVERAL MONTHS AND WILL PROBABLY COST ALMOST AS MUCH AS A BASIC MESSAGEPAD APPLE DOESN'T EXPECT TO HAVE A PLANNED ELECTRONICMAIL NETWORK FOR NEWTON UP AND RUNNING UNTIL LATE THIS YEAR BUT THE MESSAGEPAD SHINES AT DECIPHERING HANDWRITING RATHER THAN PUZZLING OUT NOTES LETTER BY LETTER THE NEWTON RECOGNITION SYSTEM DEVELOPED MOSTLY BY A GROUP OF RUSSIAN SCIENTISTS TRIES TO MATCH GROUPS OF PEN STROKES WITH WORDS IN ITS MEMORY THE DEVICE COMES WITH 10000 WORDS AND YOU CAN ADD OTHERS AS YOU GO ALONG SO NEWTON ISN'T LIKELY TO GOOF UP THE SAME WORD TWICE MOREOVER THE NEWTON IS A HIGHLY PERSONAL DEVICE WHOSE ABILITY TO RECOGNIZE YOUR PARTICULAR HANDWRITING WILL BE MUCH BETTER A MONTH AFTER YOU BUY IT THAN WHEN YOU TAKE IT HOME A YEAR AGO USING A LEADING PEN COMPUTER I TRIED TO ENTER THE PHRASE THE PEN MAY BE MIGHTIER THAN THE SWORD BUT IT'S STILL NO MATCH FOR THE KEYBOARD IT CAME OUT READING RE PEN A BEMIQN TIER RAN SWOQ BUTIT'S SALL NOU MATCH F R KEYBOARD NEWTON'S TRANSLATION AFTER JUST TWO DAYS ADJUSTING TO MY HANDWRITING WAS VASTLY BETTER THE PEN MAY BE MIGHTILY THAN THE SWORD BUT IT'S STILL NO MATCH FOR THE KEYBOARD THREE ERRORS IN A SENTENCE ARE STILL TOO MANY BUT AT LEAST NEWTON MAKES CORRECTING MISTAKES FAR EASIER THAN OTHER POPULAR SYSTEMS IN LAST YEAR'S TEST THE CORRECTIONS REQUIRED MASTERING COMPLEX EDITING GESTURES AND PAINSTAKINGLY REWRITING WORDS BETWEEN THE LINES OF A SPECIAL GRID NEWTON FIXED THE CAPITAL LETTERS IN THE AND SWORD BY SIMPLY PRESENTING A LIST OF ALTERNATIVES AND LETTING ME TAP ON THE UNCAPITALIZED VERSIONS I FOUND THERE I CHANGED MIGHTILY TO MIGHTIER BY TAPPING OUT THE PROPER SPELLING WHICH NEWTON THEN LEARNED ON A POPUP REPRESENTATION OF A KEYBOARD ALL IN ALL THIS FIRST NEWTON REMINDS ME OF THE FIRST MACINTOSH MODEL FROM 1984 IT WAS OVERPRICED AND UNDERPOWERED YET IT PIONEERED AN EASIER WAY OF USING PCS THAT HAS BECOME THE STANDARD IN BOTH 10 MILLION MACINTOSHES AND IN THE MUCH LARGER IBMCOMPATIBLE MARKET THROUGH MICROSOFT'S MACLIKE WINDOWS SOFTWARE NEWTON STANDS A CHANCE OF HAVING ITS OWN BIG IMPACT IF APPLE HANDLES IT RIGHT 9308050039 930805 VW IS EXPECTED TO HIRE AN EXECUTIVE TO ASSUME PIECH'S PUBLIC RELATIONS ROLE BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL VOLKSWAGEN AG'S SUPERVISORY BOARD UNHAPPY WITH CHAIRMAN FERDINAND PIECH'S HANDLING OF THE DISPUTE WITH GENERAL MOTORS CORP IS MOVING TO TAKE RESPONSIBILITY FOR VW'S PUBLIC IMAGE OUT OF MR PIECH'S HANDS THE SUPERVISORY BOARD CALLED AN EMERGENCY MEETING TOMORROW IN WOLFSBURG GERMANY VW'S HEADQUARTERS AT THE MEETING IT IS EXPECTED TO NAME A NEW SENIOR EXECUTIVE MOST LIKELY AT THE MANAGEMENTBOARD LEVEL TO TAKE CHARGE OF VW'S PUBLIC AFFAIRS AND EXTERNAL RELATIONS SUCH A HIGHLEVEL EXECUTIVE WHO WOULD PROBABLY COME FROM OUTSIDE VW IS LIKELY TO HAVE MORE STATURE AND WIELD MORE POWER THAN THE LOWERLEVEL PUBLICRELATIONS OFFICIALS WHO NOW REPORT TO MR PIECH VW NEEDS SOMEONE STRONG WHO CAN SAY TO LOPEZ AND PIECH WE'RE NOT DOING THIS OR THAT' SAID ONE PERSON CLOSE TO THE SUPERVISORY BOARD THE BLUNT MR PIECH HAS COME UNDER HEAVY CRITICISM IN GERMAN INDUSTRIAL CIRCLES AND FROM MEMBERS OF HIS OWN SUPERVISORY BOARD FOR USING BELLICOSE NATIONALISTIC LANGUAGE IN RECENT STATEMENTS RELATED TO THE SCANDAL SURROUNDING J IGNACIO LOPEZ DE ARRIORTUA THE VW PRODUCTION CHIEF WHOM MR PIECH RECRUITED FROM GM MR LOPEZ HAS BEEN ACCUSED BY GM OF STEALING CONFIDENTIAL GM INFORMATION VW'S SUPERVISORY BOARD WHICH CONSISTS OF INDUSTRIALISTS LOCALGOVERNMENT REPRESENTATIVES AND LABOR LEADERS HAS DRAWN SHARP CRITICISM FOR FAILING TO DO SOMETHING TO SHORE UP VW'S ERODING PUBLIC IMAGE AS IF TO UNDERSCORE THE PROBLEM VW'S ANNOUNCEMENT OF THE SPECIAL MEETING MADE DURING THE LATE AFTERNOON IN GERMANY SET OFF A RUSH TO DUMP VW SHARES THE STOCK PLUNGED 550 MARKS 322 IN AFTERHOURS TRADING ON SPECULATION THAT MR LOPEZ WOULD BE FIRED WHICH VW PRESS OFFICIALS SPENT THE REST OF THE DAY DENYING BEFORE THE ANNOUNCEMENT VW SHARES HAD RISEN IN A BUOYANT FRANKURT MARKET TO CLOSE AT 36150 MARKS 21184 UP FROM 35550 MARKS THE DAY BEFORE THE SPECIAL MEETING FRIDAY WAS CALLED BY KLAUS LIESEN CHAIRMAN OF THE SUPERVISORY BOARD WHO INTERRUPTED HIS VACATION MR LIESEN'S MOVE IS SEEN BY PEOPLE CLOSE TO THE SITUATION AS AN EFFORT TO REIN IN MR PIECH'S PUBLIC STATEMENTS THESE PEOPLE INDICATED THAT MR PIECH'S RECENT OVERTURES TO GM PRESIDENT JOHN F SMITH JR WERE PROMPTED BY THE SUPERVISORY BOARD STILL THE SUPERVISORY BOARD IS UNDERSTOOD STILL TO BACK MR PIECH'S MANAGEMENT OF VW MR PIECH HAS THE RIGHT STRATEGY AND THE RIGHT TEAM FOR CUTTING VW'S COSTS AND TURNING THE COMPANY AROUND SAID ONE PERSON CLOSE TO THE SUPERVISORY BOARD BUT THAT PERSON ADDED THE BOARD FEELS IT MUST PREVENT A POLITICAL SUICIDE FROM SABOTAGING THE TURNAROUND PLANS 9308050038 930805 BUSINESS BRIEF SOUTHWESTERN PROPERTY TRUST INC NATWEST BANK OFFERS LOAN FOR PROPERTY ACQUISITIONS SOUTHWESTERN PROPERTY TRUST INC SAID NATIONAL WESTMINSTER BANK PLC AGREED TO LEND THE COMPANY AS MUCH AS 100 MILLION TO BUY APARTMENT PROPERTIES THE DALLAS REAL ESTATE INVESTMENT TRUST SAID IT INITIALLY WILL RECEIVE A BRIDGE LOAN OF AS MUCH AS 50 MILLION THE COMPANY SAID THE LOAN WHICH CARRIES A VARIABLE INTEREST RATE TIED TO THE ONEMONTH LONDON INTERBANK OFFERED RATE WILL BE DRAWN DOWN AS IT IS NEEDED SOUTHWESTERN WHICH REPORTED A NET LOSS OF 423000 FOR THE QUARTER ENDED MARCH 31 HAS BEEN ON SOMETHING OF A BUYING BINGE THE COMPANY HAS PURCHASED ABOUT 90 MILLION IN APARTMENT PROPERTIES IN 1993 AND SAID THE NEW FINANCING WILL ENABLE IT TO CONTINUE AT THAT PACE SOUTHWESTERN SAID ITS BRIDGE LOAN WILL BE REFINANCED BY SEVENYEAR NOTES AT A FIXED INTEREST RATE BASED ON A SEVENYEAR US TREASURY BOND THE COMPANY SAID IT ANTICIPATES THAT THE BRIDGE LOAN WILL EVOLVE INTO AN ONGOING CREDIT LINE AND WILL BE USED TO ACQUIRE ADDITIONAL PROPERTIES IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING SOUTHWESTERN'S STOCK CLOSED UNCHANGED AT 1475 9308050037 930805 MEATCOOKING RULES FOR PROCESSING PLANTS ISSUED BY GOVERNMENT WASHINGTON THE AGRICULTURE DEPARTMENT ISSUED STRICTER COOKING REQUIREMENTS FOR PROCESSING PLANTS THAT MAKE COOKED OR PARTLY COOKED GROUNDMEAT PRODUCTS THE FINAL RULES WHICH FOLLOW LAST WINTER'S TAINTEDHAMBURGER OUTBREAK IN THE NORTHWEST APPLIES TO SUCH PRODUCTS AS HAMBURGER SALISBURY STEAKS BREADED CHOPPED VEAL STEAKS AND PORK SAUSAGE PATTIES THAT ARE PACKAGED FOR RESTAURANTS AND OTHER INSTITUTIONS AND HOUSEHOLDS IT DOESN'T APPLY TO COOKING AT RESTAURANTS WHERE STATE AND FEDERAL RULES GENERALLY REQUIRE EVEN HIGHER TEMPERATURES UNDER THE RULES PROCESSORS CAN PICK FROM A RANGE OF TIME AND TEMPERATURE COMBINATIONS FOR EXAMPLE A FULLY COOKED PATTY PREPARED AT 157 DEGREES MUST BE HELD AT THAT TEMPERATURE FOR 10 SECONDS A PATTY COOKED AT 155 DEGREES MUST STAY THAT HOT FOR 16 SECONDS THE TEMPERATURE IS MEASURED AT THE PATTY'S CENTER PACKAGES OF PARTLY COOKED MEATS MUST BE LABELED WITH COOKING INSTRUCTIONS FOR FOOD PREPARERS AT INSTITUTIONS PLANTS ALSO WILL BE REQUIRED TO HANDLE COOKED PATTIES AND RAW MEAT SEPARATELY THE RULES WHICH TAKE EFFECT SEPT 2 ARE AMONG SEVERAL STEPS THE DEPARTMENT IS TAKING TO IMPROVE FOOD SAFETY IT PLANS TO ISSUE NEW COOKING AND HANDLING LABELS FOR ALL RAWMEAT AND POULTRY PRODUCTS LATER THIS MONTH SEPARATELY THE DEPARTMENT SAID IT WILL ACCEPT COMMENTS UNTIL NOV 29 ON A PROPOSAL TO PROHIBIT GRAIN HANDLERS FROM ADDING WATER TO GRAIN EXCEPT FOR PROCESSING PURPOSES WATER IS SOMETIMES APPLIED TO SUPPRESS DUST BUT IT CAN BE USED TO INCREASE THE WEIGHT AND THE VALUE OF GRAIN 9308050036 930805 PALL CORP PLANS STOCK BUYBACK EAST HILLS NY PALL CORP SAID IT HAS BOARD AUTHORIZATION TO REPURCHASE UP TO 30 MILLION OR ROUGHLY 18 MILLION OF ITS OWN SHARES THE MAKER OF DISPOSABLE FILTERS AND OTHER PRODUCTS SAID IT EXPECTS TO BEGIN THE REPURCHASE PROGRAM IMMEDIATELY THE BUYBACK WILL COVER ABOUT 16 OF THE COMPANY'S SHARES OUTSTANDING IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY PALL CLOSED AT 16625 UP 625 CENTS A SHARE 9308050035 930805 BUSINESS BRIEF THOR INDUSTRIES INC FIRM SETTLES ANTITRUST SUIT FILED BY COAST DISTRIBUTION THOR INDUSTRIES INC JACKSON CENTER OHIO SAID ITS DUTCHMEN MANUFACTURING UNIT SETTLED OUT OF COURT AN ANTITRUST LAWSUIT BROUGHT BY COAST DISTRIBUTION SYSTEM SAN JOSE CALIF TERMS WEREN'T DISCLOSED THE SUIT WHICH HAD BEEN PENDING IN US DISTRICT COURT IN SAN JOSE CALIF ALLEGED THAT THOR VIOLATED ANTITRUST LAWS BY SELLING RECREATIONAL VEHICLE ACCESSORIES AT PRICES THAT WERE LOWER THAN COAST COULD BUY THEM THOR CALLED THE SUIT FRIVOLOUS AND WITHOUT MERIT THOR IS THE NATION'S NO 2 MAKER OF RECREATIONAL VEHICLES COAST IS A RECREATIONAL VEHICLE AND MARINE PARTS AND ACCESSORIES CONCERN 9308050034 930805 BUSINESS BRIEF DIAL CORP BUSMAKING DIVISION IS SOLD FOR 260 MILLION IN OFFERING DIAL CORP COMPLETED THE SALE OF ITS BUSMANUFACTURING SUBSIDIARY FOR ABOUT 260 MILLION OR 13 A SHARE IN AN INITIAL PUBLIC OFFERING THE SALE PRICE WAS LESS THAN THE 280 MILLION TO 320 MILLION IN GROSS PROCEEDS OR 14 TO 16 A SHARE THAT PHOENIXBASED DIAL HAD HOPED TO RAISE FROM SELLING 20 MILLION COMMON SHARES OF MOTOR COACH INDUSTRIES INTERNATIONAL INC WE'RE PLEASED THE BOARD FELT 13 A SHARE WAS A VERY FAIR PRICE SAID JOHN W TEETS DIAL CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER MR TEETS ACKNOWLEDGED THAT THE PRICE MAY HAVE BEEN HURT BY AN ARTICLE IN DOW JONES & CO'S BARRON'S RAISING DOUBTS ABOUT THE BUS COMPANY'S PROSPECTS DIAL WAS BARRED BY SECURITIES AND EXCHANGE COMMISSION RULES FROM REFUTING SOME OF THE MISLEADING IMPRESSIONS CREATED BY THE ARTICLE MR TEETS SAID DIAL SHARES UNDER PRESSURE FROM THE OFFERING CLOSED YESTERDAY AT 36125 DOWN 1125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MOTOR COACH INDUSTRIES BEGINS TRADING TODAY ON THE BIG BOARD 9308050033 930805 WAXMAN INDUSTRIES TO POST LOWER SALES FOR FISCAL 4TH PERIOD BEDFORD HEIGHTS OHIO WAXMAN INDUSTRIES INC CITING THE RECESSION IN CANADA SAID IT EXPECTS TO REPORT A SIGNIFICANT DROP IN SALES AND OPERATING PROFIT FOR THE FISCAL FOURTH QUARTER AND YEAR ENDED JUNE 30 THE HOME REPAIR AND REMODELING CONCERN SAID IT EXPECTS TO TAKE RESTRUCTURING AND OTHER NONCASH CHARGES AGAINST FOURTHQUARTER EARNINGS IT SAID THE AMOUNT OF THE CHARGES HAS NOT YET BEEN DETERMINED WAXMAN MADE THE ANNOUNCEMENT AFTER THE MARKET CLOSED YESTERDAY WAXMAN SHARES CLOSED UNCHANGED AT 3625 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE SALES FOR THE FOURTH QUARTER WERE ABOUT 87 MILLION DOWN 11 FROM 981 MILLION A YEAR EARLIER OPERATING PROFIT WAS SIGNIFICANTLY BELOW YEAREARLIER LEVELS THE COMPANY SAID IN A NEWS RELEASE WAXMAN DIDN'T BREAK OUT OPERATING RESULTS FOR THE YEAREARLIER PERIOD WHEN IT HAD A NET LOSS OF 57 MILLION OR 54 CENTS A SHARE AFTER A 51 MILLION CHARGE SALES FOR THE YEAR WERE ABOUT 359 MILLION DOWN 53 FROM YEAREARLIER SALES OF 379 MILLION AGAIN OPERATING PROFIT WAS SIGNIFICANTLY BELOW YEAREARLIER RESULTS THE COMPANY SAID FOR 1992 WAXMAN HAD A LOSS OF 44 MILLION OR 45 CENTS A SHARE AFTER A 51 MILLION CHARGE SEPARATELY WAXMAN FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED PUBLIC OFFERING OF SENIOR SUBORDINATED DISCOUNT NOTES DUE 2003 THE PRINCIPAL AMOUNT AND INTEREST RATES OF THE NOTE WOULD GENERATE GROSS PROCEEDS OF ABOUT 90 MILLION CASH INTEREST PAYMENTS WOULD NOT BEGIN UNTIL 5 1/2 YEARS AFTER THE NOTES ARE ISSUED KIDDER PEABODY & CO IS MANAGING UNDERWRITER PROCEEDS FROM THE OFFERING PLUS BORROWINGS FROM A NEW 25 MILLION THREEYEAR BANK AGREEMENT THAT WAXMAN EXPECTS ITS BARNETT INC UNIT TO ENTER WOULD BE USED TO REDEEM WAXMAN'S OUTSTANDING SENIOR SECURED NOTES DUE 1998 AND TO REPURCHASE A PORTION OF ITS OUTSTANDING 1375 SENIOR SUBORDINATED NOTES DUE 1999 9308050032 930805 PIKE GETS PROBATION FOR INSIDERTRADING IN FIRST NH BANKS CONCORD NH NEW HAMPSHIRE INVESTOR MILO L PIKE WAS SENTENCED TO THREE YEARS PROBATION 750 HOURS OF COMMUNITY SERVICE AND FINED 20000 FOR INSIDER TRADING IN SHARES OF FIRST NH BANKS INC MR PIKE A GUILFORD NH PAVING CONTRACTOR PLEADED GUILTY IN JANUARY TO A CHARGE OF CONSPIRACY AND COULD HAVE RECEIVED AS MUCH AS ONE YEAR IN PRISON BUT THE US ATTORNEY'S OFFICE HERE RECOMMENDED A LENIENT SENTENCE BECAUSE OF MR PIKE'S COOPERATION IN A CONTINUING INVESTIGATION OF INSIDER TRADING AND HIS SERIOUS HEART CONDITION ACCORDING TO PROSECUTOR DAVID VICINANZO ACCORDING TO PROSECUTORS MR PIKE WHO TOOK LARGE STAKES IN MANY NEW ENGLAND BANKS DURING THE LATE 1980S AND LATER SUFFERED LARGE LOSSES LEAKED INSIDE INFORMATION ABOUT ACQUISITION TALKS BETWEEN FIRST NH AND BANK OF IRELAND IN 1988 AND NOTIFIED UNIDENTIFIED COCONSPIRATORS WHO TRADED FIRST NH STOCK AND PROFITED MR PIKE 62 YEARS OLD DID NOT PERSONALLY PROFIT PROSECUTORS SAID IN FEBRUARY MR PIKE AGREED TO A 100000 SETTLEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR VIOLATIONS OF DISCLOSURE REQUIREMENTS INVOLVING HIS PURCHASES OF BANK STOCKS HE CONSENTED TO A CEASEANDDESIST ORDER WITHOUT ADMITTING OR DENYING WRONGDOING 9308050031 930805 WEDNESDAY'S MARKETS DOW EASES 922 BONDS DECLINE ON BUDGET FEARS BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL WORRIES ABOUT THE PENDING BUDGET BILL IN CONGRESS UNDERMINED BOND PRICES AND LEFT STOCK PRICES MIXED THE DOLLAR EDGED HIGHER THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 922 POINTS TO 355205 AND STANDARD & POOR'S 500STOCK INDEX FELL 073 TO 44854 BUT THE NASDAQ COMPOSITE INDEX ROSE 478 TO A RECORD 71379 ECLIPSING ITS PREVIOUS RECORD OF 71249 BOND PRICES RETREATED AS TRADERS GREW ANXIOUS ABOUT TODAY'S VOTE IN THE HOUSE ON PRESIDENT CLINTON'S BUDGET DEFICITREDUCTION PACKAGE A SENATE VOTE IS SCHEDULED FOR TOMORROW THOUGH MANY TRADERS EXPECT THE PACKAGE TO BE APPROVED SOME WORRIED THAT BOND PRICES HAVE BEEN BID UP TOO HIGH IN ANTICIPATION BOND MARKET INVESTORS ALSO WERE HESITANT AHEAD OF THE TREASURY'S ANNOUNCEMENT OF ITS QUARTERLY REFUNDING PLANS IN THE AFTERNOON THE TREASURY SAID IT WILL SELL A RECORD 385 BILLION OF NEW SECURITIES NEXT WEEK SOME ANALYSTS SAID PASSAGE OF THE DEFICIT PACKAGE IS ALREADY BUILT INTO THE BOND MARKET AND PRICES WILL LIKELY FALL EVEN WITH THE PLAN'S APPROVAL THAT COULD ALSO DEPRESS STOCK PRICES NEIL HOKANSON PRESIDENT OF HOKANSON FINANCIAL MANAGEMENT IN ENCINITAS CALIF SAID HE PLANS TO SHY AWAY FROM THE STOCK MARKET UNTIL AFTER THE VOTE IT'S KIND OF A SENSITIVE MARKET RIGHT NOW AND IT REACTS SHARPLY HE SAID OVERSEAS THE BUNDESBANK NUDGED A KEY MONEY MARKET INTEREST RATE LOWER GIVING A BOOST TO GERMAN STOCKS AND BONDS AND EUROPEAN CURRENCIES WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 021 TO 10954 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 230 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 969 ISSUES ROSE AND 938 FELL BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL MORE THAN 3/8 POINT OR OVER 375 FOR EACH 1000 FACE AMOUNT TO YIELD 654 THE DOLLAR ROSE IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17090 MARKS AND 10488 YEN COMPARED WITH 17070 MARKS AND 10444 YEN TUESDAY 9308050030 930805 FISH STORY PLAN TO DESTROY DAMS TO HELP SALMON RILES WIDE ARRAY OF GROUPS BATTLE OVER THE ELWHA RIVER INVOLVES US AGENCIES ENVIRONMENT PAPER MILL INDIANS CITE ANCIENT TREATY BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL GLINES CANYON DAM WASH TO SOME PEOPLE THE SCENE AROUND THIS NARROW MOSSY DAM ON WASHINGTON'S REMOTE OLYMPIC PENINSULA IS NATURE AT ITS STUNNING BEST BEHIND THE DAM LAKE MILLS FED BY GLACIERS AND FRINGED BY RISING RANKS OF OLDGROWTH FOREST WINDS BACK INTO THE CLOUDY PEAKS OF OLYMPIC NATIONAL PARK BELOW IT THE ELWHA RIVER FLOWS OFF THROUGH FOREST POOLS TOWARD THE PACIFIC OCEAN BUT TO A COALITION OF ENVIRONMENTALISTS INDIANS AND FEDERAL BUREAUCRATS A CRITICAL PIECE OF THE PICTURE IS MISSING THEY WANT THE ELWHA'S LEGENDARY RUNS OF WILD SALMON RESTORED THE FISH ALL BUT DISAPPEARED FROM THE 44MILE RIVER EIGHT DECADES AGO WHEN THE ELWHA WAS DAMMED IN TWO PLACES TO PRODUCE ELECTRICITY THEY HAVE BEEN REPLACED WITH HATCHERYRAISED SALMON AFTER YEARS OF INTENSE LOBBYING THE COALITION TRIUMPHED LAST OCTOBER WHEN CONGRESS PASSED THE ELWHA RIVER ECOSYSTEM AND FISHERIES RESTORATION ACT THE LAW PASSED HASTILY WITH ALMOST NO DEBATE OR DISSENT AUTHORIZES THE INTERIOR DEPARTMENT TO BEGIN A STUDY OF THE ELWHA PROJECT'S COST THEN BUY THE TWO DAMS NEXT YEAR AND TEAR THEM DOWN THAT WOULD PERMIT THE FEDS TO RESTORE THE RIVER TO ITS NATURAL STATE AND REINTRODUCE WILD FISH ALTHOUGH THE GOVERNMENT HAS BUILT MANY DAMS OVER THE YEARS THE ELWHA PROJECT WOULD BE ITS FIRST FORAY INTO ENVIRONMENTAL DAMBUSTING THE COST IS DISPUTED BUT COULD REACH 235 MILLION THOSE WHO FAVOR THE PROJECT SAY IT IS THE RIGHT THING TO DO RESTORING INDIANS' ANCIENT FISHING RIGHTS REMOVING MANMADE STRUCTURES FROM A PRISTINE PARK REALIGNING THE BALANCE BETWEEN NATURE AND DEVELOPMENT INTERIOR SECRETARY BRUCE BABBITT HAS PRONOUNCED HIS ENTHUSIASTIC SUPPORT FOR TEARING DOWN THE DAMS CALLING THE PROJECT A PIECE OF CAKE BUT THERE IS GROWING CONCERN THAT SPENDING A LOT OF MONEY TO REPLACE HATCHERY FISH WITH WILD FISH IN A REMOTE SMALL RIVER MAY BE MORE LIKE A PIECE OF PORKENVIROPORK WE HAVE LIMITED DOLLARS TO SPEND THESE DAYS AND WE'RE GOING TO SPEND 235 MILLION TO RESTORE SALMON TO THIS RIVER ARE YOU KIDDING ME SAYS SEN LARRY CRAIG AN IDAHO DEMOCRAT NEARLY EVERYONE AGREES THAT THE ELWHA SURROUNDED BY THE 922000ACRE PARK AND ONCE BOASTING WILD CHINOOK SALMON WEIGHING UP TO 100 POUNDS CONTAINS SOME OF THE NATION'S FINEST SALMON HABITAT ROBERT ELOFSON A FISH BIOLOGIST AND MEMBER OF THE LOWER ELWHA TRIBE SAYS TRIBAL ELDERS RECALL RUNS OF SOME 100000 FISH BEFORE THE DAMS WENT IN I'VE SEEN 50 SALMON SHOOT THROUGH A POOL AND IT'S PRETTY IMPRESSIVE HE SAYS I CAN'T IMAGINE WHAT 100000 SALMON WOULD LOOK LIKE THE WILD FISH ALL BUT DISAPPEARED IN 1913 WHEN THE 110FOOTHIGH ELWHA DAM WAS BUILT FIVE MILES FROM THE RIVER'S MOUTH BY DEVELOPERS FROM CHICAGO AND SEATTLE THE 210FOOT GLINES CANYON DAM EIGHT MILES FARTHER UPSTREAM WAS COMPLETED IN 1927 BY THE SAME PEOPLE THE DAMS LACKING ANY FISH LADDERS CHOKED OFF THE SALMON RUNS SINCE THEN FEDERAL REGULATIONS HAVE CHANGED TO GET AN OPERATING LICENSE PRIVATE DAMS MUST ALLOW FISH PASSAGE THE FIGHT OVER THE ELWHA DAMS BEGAN IN THE 1970S WHEN GLINES CANYON DAM'S 50YEAR LICENSE EXPIRED THE ELWHA DAM WHICH PREDATES THE FEDERAL POWER ACT OF 1920 WAS NEVER LICENSED THE DAMS' CURRENT OWNERS JAMES RIVER CORP AND JAPANESEOWNED DAISHOWA AMERICA CO SAY THEY COULD MEET FEDERAL LICENSING REQUIREMENTS BY INSTALLING A FISH LADDER IN THE ELWHA DAM AND TRUCKING SALMON AROUND GLINES CANYON THE COST OF THE LADDER AND THE CATCHANDCARRY PLAN ABOUT 46 MILLION ACCORDING TO A STUDY BY THE FEDERAL ENERGY REGULATORY COMMISSION WHICH OVERSEES THE DAMS BUT ENVIRONMENTALIST GROUPS SUCH AS FRIENDS OF THE EARTH THE SIERRA CLUB AND AMERICAN RIVERS INC SAY LEAVING THE DAMS STANDING IS UNACCEPTABLE ONLY TWO OF THE FIVE ORIGINAL WILDSALMON SPECIES CHINOOK AND COHO WOULD BE RETURNED TO THE RIVER UNDER THE CATCHANDCARRY PLAN PINK AND CHUM SALMON WOULD STILL HAVE TO BE RAISED IN HATCHERIES SOCKEYE SALMON THE FIFTH NATIVE SPECIES ARE PROBABLY GONE FOREVER BIOLOGISTS SAY REP AL SWIFT A WASHINGTON DEMOCRAT AND A SPONSOR OF THE ELWHA BILL SAYS THE LEGISLATION WAS FORCED ON CONGRESS BY ENVIRONMENTALISTS AND THE NATIONAL PARK SERVICE HE ADDS THAT HE GOT INVOLVED SO HE COULD WRITE IN PROTECTIONS FOR LOCAL WATER SUPPLIES AND JOBS A PURELY PRAGMATIC DECISION HE ADDS THESE ARE NATIONAL FORCES WHO SEE THIS AS A HOLY WAR THEY CAN'T SLEEP KNOWING THERE'S A DAM IN A NATIONAL PARK OTHERS WORRY THAT CONGRESS IN ITS HASTE TO APPROVE THE ELWHA PROJECT MAY HAVE TIPPED THE SCALES IN OTHER FISHVSDAM CONTROVERSIES LICENSES FOR MORE THAN 200 FEDERALLY REGULATED DAMS ARE UP FOR RENEWAL AND SOME ARE UNDER FIRE FROM THE SAME ENVIRONMENTAL GROUPS ANOTHER CONCERN THE ELWHA LEGISLATION OPENS THE DOOR FOR A POTENTIALLY COSTLY SHIFT IN DECIDING WHO GETS STUCK WITH LOSSES IN OTHER FEDERAL ENVIRONMENTAL DISPUTES IT COMMITS THE GOVERNMENT TO PAY 295 MILLION TO DAISHOWA FOR THE LOSS OF THE DAMS' CHEAP ELECTRICITY FOR ITS PAPER MILL IN NEARBY PORT ANGELES WASH DAISHOWA THREATENED TO TIE UP THE LEGISLATION IN COURT AND HINTED IT WOULD CUT BACK OR CLOSE ITS MILL IF IT DIDN'T GET PAID IN THE PAST SAYS PAUL PORTNEY A POLICY EXPERT AT RESOURCES FOR THE FUTURE A WASHINGTON DC THINK TANK PEOPLE WHO LOST ENVIRONMENTAL BATTLES EITHER TRIED TO BLOCK THE POLICY IN COURT OR THE CHANGE WAS MADE AND THEY ENDED UP WITH THE SHORT END OF THE STICK THE ELWHA LEGISLATION SHIFTS THE BURDEN TO THE GOVERNMENT SEN MALCOLM WALLOP A MONTANA REPUBLICAN SEES A HIGH RISK HERE OF SETTING PRECEDENT FOR COMPENSATING LOSERS WHO WOULDN'T NORMALLY EXPECT TO BE COMPENSATED HE WORRIES FOR EXAMPLE THAT THE LAW COULD SPUR ADDITIONAL CLAIMS FROM LOSERS IN THE SPOTTEDOWL CONTROVERSY MR PORTNEY FORESEES A MILLION PEOPLE LINED UP WANTING TO TAKE ADVANTAGE OF THIS DECISION HOW DID CONGRESS GET INTO THIS PICKLE SOME LAWMAKERS SAY THE ELWHA LEGISLATION IS ONE OF THOSE PESKY REGIONAL BILLS THAT JUST SLIP THROUGH SEN SLADE GORTON A WASHINGTON REPUBLICAN SAYS HE AND OTHERS PUSHED IT IN HONOR OF WASHINGTON'S SEN BROCK ADAMS WHO HAD RECENTLY DROPPED HIS REELECTION BID AFTER SEXUALHARASSMENT ALLEGATIONS I ONLY AGREED TO SPONSOR THE BILL BECAUSE IT WAS PRIMARILY SEN ADAMS'S DREAM SEN GORTON ADDS OTHERS OFFER VARIOUS EXPLANATIONS FOR THEIR VOTE THE LATE HOUR THE BACKING OF THE ENTIRE WASHINGTON STATE DELEGATION OR RELUCTANCE TO OFFEND A BIG JAPANESE COMPANY IN ANY EVENT A NUMBER OF AGENDAS ARE NOW CLEARLY AT WORK INCLUDING A TURF BATTLE BETWEEN TWO WARRING FEDERAL AGENCIES MILLIONS OF DOLLARS IN DEVELOPMENT MONEY FOR A TINY INDIAN TRIBE AND A LOOMING SHOWDOWN BETWEEN ENVIRONMENTALISTS AND THE FEDERAL ENERGY REGULATORY COMMISSION FERC OVER THE FUTURE OF OTHER AGING HYDROELECTRIC DAMS AT ONE POINT SAYS A FEDERAL OFFICIAL WHOSE AGENCY TOOK PART IN THE WHEELING AND DEALING LEADING UP TO THE VOTE THERE WERE 25 PEOPLE IN ONE ROOM ALL ARGUING DIFFERENT POSITIONS CAN YOU IMAGINE WHAT THAT WAS LIKE AMONG THOSE ARGUING HARDEST FOR REMOVING THE DAMS HAS BEEN THE INTERIOR DEPARTMENT'S NATIONAL PARK SERVICE BOTH DAMS PREDATE OLYMPIC NATIONAL PARK WHICH WAS FORMED IN 1938 BUT PARK SERVICE OFFICIALS CALL THEM CLASSIC EXAMPLES OF UNNECESSARY COMMERCIAL INTRUSION WE FEEL VERY STRONGLY A SPOKESMAN SAYS THAT IF WE ARE TO REALIZE OUR LEGAL MANDATE TO PROTECT THE NATURAL STATE OF THE PARK WE'RE NOT GOING TO DO IT WITH THOSE DAMS THERE IN ADDITION THE ELWHA DAMS HAVE BECOME THE FOCUS OF A BATTLE BETWEEN THE INTERIOR DEPARTMENT AND FERC WHOSE MISSION HAS BEEN TO GENERATE POWER NOT TEAR DOWN HYDROELECTRIC DAMS BOTH AGENCIES WANT CONTROL OF THE ELWHA DAMS AND HALF A DOZEN OTHERS BUILT BEFORE THE GOVERNMENT BEGAN LICENSING DAMS AND NOW SITTING ON INTERIOR'S TURF FERC OFFICIALS CONCEDE THAT INTERIOR CONTROLS DAMS BUILT IN ITS DOMAIN AFTER THE 1920 LAW BUT FOR A DAM SUCH AS GLINES CANYON THAT CAME AFTER THAT LAW BUT BEFORE THE PARK WAS FORMED THE ISSUE BECOMES FUZZY SAYS RONALD MCKITRICK A FERC PLANNING OFFICIAL THE AGENCIES' FIGHT SPILLED OVER INTO FEDERAL COURT THREE YEARS AGO WHEN INTERIOR INTERVENED IN A LAWSUIT FILED BY MORE THAN A DOZEN ENVIRONMENTAL GROUPS CHALLENGING FERC'S RIGHT TO LICENSE THE ELWHA DAMS THE NINTH CIRCUIT COURT OF APPEALS STAYED THE CASE AFTER THE ELWHA BILL WAS PASSED IT REMAINS UNRESOLVED ENVIRONMENTAL GROUPS ALSO HAVE A LARGER STAKE IN THE ELWHA DISPUTE SEVERAL SAY FERC ISN'T RESPONSIVE TO FISH NEEDS AT THE 2000 OTHER DAMS IT CONTROLS UNTIL A DECADE AGO DECOMMISSIONING AND TEARING DOWN DAMS THAT BLOCKED FISH WAS VIEWED AS A RADICAL IDEA SAYS LORRI BODI THE CODIRECTOR OF THE NORTHWEST REGIONAL OFFICE OF AMERICAN RIVERS INC BUT THAT IS CHANGING MS BODI SAYS AS MORE FISH SPECIES ARE PLACED ON ENDANGERED OR THREATENED LISTS AND AS MORE 50YEAR DAM LICENSES EXPIRE THE ELWHA PUT THE SPOTLIGHT ON THIS ISSUE SHE SAYS YOU CAN'T RESTORE FULL FISHERY PRODUCTION WITHOUT ELIMINATING THE DAMS AMERICAN RIVERS AND HALF A DOZEN OTHER CONSERVATION GROUPS HAVE ATTACKED FERC'S JURISDICTION OVER SEVERAL OTHER DAMS INCLUDING TWO ON THE OLYMPIC PENINSULA'S SKOKOMISH RIVER SO FAR FERC WON'T SAY WHETHER IT BELIEVES THE ELWHA DAMS SHOULD STAY OR GO BUT MR MCKITRICK SAYS FERC HAS RECOMMENDED REMOVING A DAM ONLY ONCE FOR SAFETY REASONS I DON'T KNOW OF ANY OTHER FEDERAL PROJECTS TAKEN OUT TO RESTORE FISHERIES HE SAYS DIFFER FERC'S STUDY ESTIMATES THE COST OF REMOVING THE DAMS AND RESTORING THE ELWHA'S WILD SALMON AT 235 MILLION INTERIOR SAYS IT CAN DO THE JOB FOR NEARLY 100 MILLION LESS BUT THAT DOESN'T INCLUDE THE VALUE OF THE CHEAP POWER THAT WOULD BE LOST NEITHER AGENCY IS TALKING TO THE OTHER BUT INTERIOR WILL GIVE CONGRESS ITS OWN ANALYSIS EARLY NEXT YEAR BEFORE ANY MONEY IS APPROPRIATED WHAT IT COMES DOWN TO SAYS BRIAN WINTER WHO HEADS THE INTERIOR DEPARTMENT'S STUDY TEAM IS WE WILL GIVE CONGRESS OUR FIGURES AND AFTER THAT IT'S A POLITICAL DECISION BOTH AGENCIES AGREE THAT ANYONE TRYING TO TAKE OUT THE ELWHA'S DAMS AND BRING BACK ITS WILD FISHRUNS FACES BIG HURDLES ONE OF THE TOUGHEST WILL BE TO RESTORE THE RIVER AND FISHSPAWNING HABITAT BEHIND THE DAMS WHERE SEDIMENT NOW LIES AS DEEP AS 100 FEET SEDIMENT RESTORATION HABITAT MANAGEMENT AND DAM REMOVAL HAVE ALL BEEN DONE BEFORE SAYS MR WINTER A BIOLOGIST BUT NOBODY'S DONE ALL THOSE THINGS ON A SCALE LIKE THIS PROJECT THE LOWER ELWHA TRIBE WHICH ONCE EMPLOYED MR WINTER HAS CALLED FOR REMOVAL OF THE DAMS AT ANY PRICE TRIBAL OFFICIALS SAY THE DAMS VIOLATE THE 138YEAROLD POINT NO POINT TREATY WHICH GUARANTEED INDIANS AROUND PUGET SOUND HALF THE AREA'S SALMON CATCH WE LOST A LOT WHEN THOSE DAMS WENT IN AND WE WERE NEVER COMPENSATED FOR THAT LOSS WE CAN'T ALLOW THAT TO CONTINUE SAYS MR ELOFSON WHO UNTIL RECENTLY HEADED THE TRIBE'S RIVERRESTORATION EFFORT BUT WHILE FEDERAL COURTS ALL THE WAY TO THE US SUPREME COURT HAVE UPHELD THE INDIANS' TREATY RIGHTS TO CATCH SALMON IT IS LESS CLEAR WHETHER THE TREATY COVERS RESTORATION OF LONGGONE WILD FISH SUCH A READING OF THE TREATY WOULD DEEPLY AFFECT EVERYONE FROM LOGGERS TO URBAN DEVELOPERS IN THE PACIFIC NORTHWEST PHILLIP KATZEN A LOWER ELWHA ATTORNEY SAYS THE TREATY ISSUE COULD END UP FOCUSING ON THE DAMS IF THE TRIBE TAKES ITS CLAIM TO COURT IRONICALLY MORE OF THE TRIBE'S 600 MEMBERS MAKE THEIR LIVING AT DAISHOWA'S PAPER MILL THAN BY FISHING ON THE RIVER BUT THE DAMBUSTING LAW OFFERS MORE THAN JUST A PROMISE OF WILD FISH IT PLEDGES THAT THE GOVERNMENT WILL BUILD A NEW TRIBAL CULTURAL CENTER IN PORT ANGELES AND SPEND AN ADDITIONAL 4 MILLION FOR HOUSING ECONOMIC DEVELOPMENT AND A NEW MOORING FOR THE INDIANS' DEEPSEA FISHING BOATS MR ELOFSON ESTIMATES THAT TOURISM AND JOB SPINOFFS FROM THE ELWHA LAW WOULD BE WORTH AN ADDITIONAL 5 MILLION TO THE TRIBE NOTING THE TRIBE'S 70 UNEMPLOYMENT RATE HE SAYS IF THERE'S ANY PLACE IN THE COUNTRY THAT NEEDS THIS IT'S HERE BUT SEN GORTON AND OTHER CRITICS OF THE LEGISLATION SAY THE INDIANS ARE JUST ANOTHER GROUP USING THE SALMON TO FURTHER THEIR OWN INTERESTS THE INDIANS WANTED HALF THE COUNTY WHEN THE NEGOTIATIONS STARTED HE SAYS ADDS REP SWIFT WE WERE THE BAD GUYS FOR CUTTING IT TO 4 MILLION ALMOST LOST IN THE MANEUVERING IS THE QUESTION WHETHER THE COST OF RESTORING WILD SALMON MAKES ANY ECONOMIC SENSE THAT REMAINS TO BE SEEN REP SWIFT SAYS IF THE FISH ARE CAUGHT BY AMERICAN FISHERMEN YOU MAY BE ABLE TO MAKE A CASE FOR ECONOMIC BENEFITS BUT IT'S ALSO POSSIBLE WE'LL LOOK BACK AT THIS IN 10 OR 15 YEARS AND WONDER WHAT THE HELL WE WERE DOING 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 9308050029 930805 MARKETING BRIEF NOTED MAGAZINES SMARTMONEY THE WALL STREET JOURNAL MAGAZINE OF PERSONAL BUSINESS WILL INCREASE ITS CIRCULATION RATE BASE TO 450000 FROM 400000 SMARTMONEY A JOINT VENTURE OF DOW JONES & CO AND HEARST CORP'S HEARST MAGAZINES GROUP SAID STRONG CONSUMER INTEREST CONTINUES TO BOLSTER CIRCULATION LAST MONTH SMARTMONEY RAISED ITS RATE BASE FOR THE AUGUST ISSUE TO 400000 FROM 300000 9308050028 930805 ECONOMY BMW EXPECTS USMADE CARS TO HAVE 80 LEVEL OF NORTH AMERICAN CONTENT BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL TRAVERSE CITY MICH BAYERISCHE MOTOREN WERKE AG IN AN ANNOUNCEMENT THAT COULD HAVE POLITICAL ECONOMIC AND MARKETING IMPLICATIONS FOR THE AUTO MAKER DISCLOSED THAT IT EXPECTS NORTH AMERICAN COMPANIES TO SUPPLY 80 OF THE CONTENT OF THE VEHICLES BMW WILL BUILD AT ITS FIRST US ASSEMBLY PLANT IN ITS FIRST FORMAL ADDRESS BEFORE A NATIONAL GATHERING OF US AUTO SUPPLIERS BMW SAID THE PARTS THAT WILL GO INTO THE 318I SEDANS AND ANOTHER YETTOBEANNOUNCED VEHICLE AT THE GERMAN LUXURY CAR MAKER'S SOUTH CAROLINA PLANT WILL COME PRIMARILY FROM 20 COMPANIES BASED IN THE US CANADA AND MEXICO BMW SAID IT STARTED ASSEMBLING THE GROUP OF SUPPLIERS SHORTLY AFTER BREAKING GROUND LAST YEAR FOR THE NEW PLANT AS THE JAPANESE AUTO MAKERS HAVE LEARNED SOMETIMES IT'S IMPORTANT FOR POLITICAL REGULATORY AND TRADE REASONS TO BE ABLE TO CLAIM A HIGH LEVEL OF LOCAL CONTENT SO THAT THE VEHICLES BUILT IN A US PLANT CAN BE TREATED AS US CARS HONDA MOTOR CO FOR EXAMPLE HAS BOOSTED THE LOCAL CONTENT OF ITS VEHICLES TO 75 SUCH A HIGH CONTENT LEVEL ACTS AS A BUFFER AGAINST CURRENCY FLUCTUATIONS AND POLITICAL PRESSURES AND ONE OF THE ATTRACTIONS OF THE BMW PROJECT FOR SOUTH CAROLINA WAS THE PROSPECT THAT SUPPLIERS WOULD SET UP SHOP NEARBY AND BRING IN MORE JOBS THAN THE PLANT'S 2000 EMPLOYEES ON THE OTHER HAND BMW HAS ACKNOWLEDGED THAT IT COULD FACE A MARKETING PROBLEM IF THE CARS SHOULD BE SEEN AS FALLING SHORT OF BMW'S IMAGE FOR TOPQUALITY GERMAN ENGINEERING INDEED DR BURKHARD GOESCHEL THE PROJECT MANAGER OF THE SOUTH CAROLINA VENTURE SAID KEY SUPPLIERS WERE ENLISTED EARLY TO ENSURE THAT THEY WILL KEEP THE QUALITY OF THE USMADE VEHICLES UP TO BMW'S GERMAN STANDARDS THIS IS SURELY A MAJOR CHALLENGE THAT CANNOT BE OVERCOME WITH COMMON PROCESSES AND STRUCTURES DR GOESCHEL SAID HE SAID THAT THE ENGINES TRANSMISSIONS AND FRONT AXLES WILL BE IMPORTED FROM GERMANY BMW SAID ITS NORTH AMERICAN SUPPLIERS ARE EXPECTED TO BEGIN CONSTRUCTING WAREHOUSES AND MANUFACTURING FACILITIES NEAR SPARTANBURG SC WHERE THE LUXURY AUTO MAKER IS TO START LOWVOLUME PRODUCTION OF ITS 318I SEDANS NEXT YEAR THE PLANT IS TO START BUILDING THE YETTOBEANNOUNCED BMW IN 1995 HAVING TEAMED UP WITH SUPPLIERS EARLY BMW SAID IT HOPES TO DEVELOP THE SOUTH CAROLINA PLANT'S NEW VEHICLE IN JUST 38 MONTHS THAT WOULD BE COMPETITIVE WITH THE WORLD'S BEST TIMES FOR DEVELOPING A NEW PRODUCT IN THE AUTO INDUSTRY DR GOESCHEL ACKNOWLEDGED THAT MEETING SUCH A SCHEDULE ONLY COMPOUNDS THE CHALLENGE OF BUILDING A NEW PLANT IN A NEW COUNTRY WITH A NEW LABOR FORCE OUR PHILOSOPHY IS TO HAVE A LOT OF TRUST IN SUPPLIERS HE SAID ADDING THAT BMW'S GOAL WAS TO HAVE A FAMILY GROUP IN SPARTANBURG THAT WILL GET TOGETHER TO DISCUSS OUR COMMON TARGETS DR GOESCHEL ARGUED THAT BMW'S US PLANT WILL BE FUNDAMENTALLY DIFFERENT FROM THE JAPANESE TRANSPLANTS WHICH PRODUCE PREDOMINANTLY FOR THE US MARKET HE SAID THAT BMW BY CONTRAST NOW EXPECTS TO EXPORT AS MUCH AS 70 OF THE SOUTH CAROLINA PLANT'S OUTPUT TO MARKETS IN EUROPE AND ELSEWHERE THE PLANT WILL ULTIMATELY BE CAPABLE OF PRODUCING BOTH RIGHTHAND AND LEFTHAND DRIVE VEHICLES 9308050027 930805 CREDIT MARKETS TREASURY PRICES DROP ON NEWS OF RECORD SIZE OF REFUNDING CONCERNS ABOUT JULY JOBS DATA BY THOMAS T VOGEL JR AND JOHN CONNOR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE PRICES OF GOVERNMENT SECURITIES DROPPED AS THE TREASURY ANNOUNCED DETAILS OF A RECORD 385 BILLION QUARTERLY REFUNDING AUCTION AND SAID IT WILL CONTINUE ITS SOCALLED DUTCH AUCTION TEST FOR ANOTHER YEAR BOND TRADERS HELPED TO PUSH PRICES LOWER AS THEY BEGAN TO POSITION FOR THE AVALANCHE OF SUPPLY TO COME NEXT WEEK IN THE AUCTION ALSO DEPRESSING PRICES WERE CONCERNS ABOUT THE JULY EMPLOYMENT REPORT TO BE RELEASED TOMORROW UNLIKE PAST TRADING SESSIONS IT APPEARS THAT WORRIES ABOUT THE PASSAGE OF PRESIDENT CLINTON'S BUDGET PACKAGE HAD LITTLE EFFECT ON PRICES THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN 3/8 POINT OR MORE THEN 375 FOR A BOND WITH A 1000 FACE VALUE TO 107 16/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE ROSE TO 654 FROM 651 ON TUESDAY THE 10YEAR NOTE ROSE MORE THAN 1/2 POINT TO 102 25/32 TO YIELD 586 UP FROM 578 THE BOND MARKET HAS BUILT IN THE PASSAGE OF THE BUDGET BILL SAID JOHN COSTAS HEAD OF GOVERNMENT TRADING AT FIRST BOSTON CORP NOW THE MARKET IS DISPLAYING THE TYPICAL TENDENCY TO BUY ON THE RUMOR AND SELL ON THE FACT HE SAID OTHER THAN THE REFUNDING ANNOUNCEMENT WHICH CAME AS MANY HAD EXPECTED THERE IS NOT A LOT OF SOLID NEWS FOR THE MARKET TO MULL OVER SAID MR COSTAS BUT THE EMPLOYMENT REPORT COULD HAVE A LOT MORE EFFECT ON THE MARKET THAN THE BUDGET BILL DEBATE SINCE MOST IN THE MARKET EXPECT THE BILL TO PASS HE SAID WITH A FLOOD OF NEW SECURITIES COMING IN NEXT WEEK'S REFUNDING AUCTIONS TRADERS AND SPECULATORS ARE A LITTLE HARDPRESSED TO THINK WE CAN TAKE SOME OF THE REFUNDING AT CURRENT HIGH PRICES SAID MR COSTAS SO THERE WERE SELLING PRESSURES YESTERDAY AS DEALERS MADE ROOM ON THEIR SHELVES FOR THE NEW TREASURY SECURITIES AND BY LATE IN THE SESSION SOME OF THE UNCERTAINTY ABOUT THE BUDGET PACKAGE SEEMED TO BE RESOLVED AS SEN DENNIS DECONCINI D ARIZ PROMISED THE PRESIDENT SUPPORT THAT MAY PROVE CRUCIAL TO KEEPING THE PLAN ALIVE THIS GOES A LONG WAY TOWARD RESOLVING THE UNCERTAINTY BUT PEOPLE AREN'T REALLY GOING TO BELIEVE IT UNTIL THEY SEE IT SAID MATTHEW ALEXY SENIOR MARKET STRATEGIST AT FIRST BOSTON CORP BUT THE TREASURY REFUNDING ANNOUNCEMENT WAS AT THE CENTER OF ATTENTION YESTERDAY THE TREASURY SAID ITS ONEYEAR EXPERIMENT WITH THE DUTCH OR SINGLEPRICE AUCTION TECHNIQUE IN TWOYEAR AND FIVEYEAR NOTE SALES HAS BEEN INCONCLUSIVE AND THAT FURTHER EVALUATION IS REQUIRED IN ADDITION THE TREASURY UNDERSECRETARY FRANK NEWMAN VOICED INTEREST IN THE IDEA BROACHED RECENTLY BY THE TREASURY'S PRIVATESECTOR DEBT ADVISORY PANEL OF THE DEPARTMENT SELLING FLOATINGRATE NOTES HE SAID THE TREASURY HAS NO FORMAL STUDY UNDERWAY ON THE FLOATER SUGGESTION BUT ADDED POINTEDLY THAT IT IS AN IDEA WORTH SOME THOUGHT AND WE'LL GIVE IT SOME THOUGHT THE AUGUST REFUNDING OPERATION DETAILED BY THE TREASURY YESTERDAY BREAKS THE 38 BILLION RECORD SET IN THE NOVEMBER 1991 QUARTERLY REFUNDING THE TREASURY NEXT WEEK WILL SELL 385 BILLION OF NOTES AND BONDS TO REFUND MATURING SECURITIES AND RAISE ABOUT 118 BILLION OF NEW CASH THE REFUNDING WILL CONSIST OF 165 BILLION OF THREEYEAR NOTES TO BE SOLD NEXT TUESDAY 11 BILLION OF 10YEAR NOTES TO BE SOLD NEXT WEDNESDAY AND 11 BILLION OF 30YEAR BONDS TO BE SOLD NEXT THURSDAY ALL THREE AUCTIONS WERE INCREASED IN SIZE WITH THE THREEYEAR NOTE AUCTION GROWING BY 500 MILLION THE 10YEAR NOTE AUCTION GROWING BY 250 MILLION AND THE 30YEAR BOND AUCTION GROWING BY A WHOPPING 275 BILLION THE 30YEAR BONDS WILL THE BE LAST SUCH SECURITIES THE TREASURY WILL SELL UNTIL NEXT FEBRUARY UNDER ITS NEW POLICY OF REDUCING THE AMOUNT OF LONGTERM BONDS IT SELLS EACH YEAR AS ANNOUNCED THE TREASURY WILL SELL 30YEAR BONDS ONLY TWICE A YEAR INSTEAD OF QUARTERLY MR NEWMAN SAID THE TREASURY IS EXTENDING THE SINGLEPRICE AUCTION EXPERIMENT FOR ANOTHER YEAR THROUGH THE TWOYEAR AND FIVEYEAR NOTE AUCTIONS OF NEXT AUGUST THE TEST ORIGINALLY HAD BEEN SLATED TO RUN ONE YEAR UNDER THIS TECHNIQUE ALL SUCCESSFUL BIDDERS GET BONDS AT THE SAME PRICE IT IS ADVOCATED BY MANY ACADEMIC ECONOMISTS AS A MONEYSAVING WAY FOR THE TREASURY TO SELL ITS DEBT AS WELL AS A SAFEGUARD AGAINST MARKET MANIPULATION THE RESULTS TO DATE OF THE DUTCH AUCTION TEST WHICH STARTED LAST SEPTEMBER HAVE NOT BEEN CONCLUSIVE MR NEWMAN SAID THE DEPARTMENT WOULD GO WITH THE TECHNIQUE ON A PERMANENT BASIS IF IT HAD SOLID EVIDENCE THAT THE METHOD LIVED UP TO ITS ADVANCE BILLING AND THAT THE DEPARTMENT WOULD DROP THE TECHNIQUE IF IT CONCLUDED THE TEST WAS A FLOP AS OF NOW HE SAID WE BELIEVE THAT MORE OBSERVATIONS ARE NECESSARY TO EVALUATE THE SINGLEPRICE TECHNIQUE THOROUGHLY THE TREASURY WAS TOLD RECENTLY BY ITS BOND MARKET ADVISORY COMMITTEE THAT IT MIGHT WANT TO CONSIDER THE POSSIBILITY OF SELLING FLOATINGRATE NOTES WITH MATURITIES OF AS LONG AS FIVE YEARS WITH THE INTEREST RATE INDEXED TO THE 13WEEK TREASURY BILL RATES AND RESET AS FREQUENTLY AS WEEKLY LATE YESTERDAY THE 30YEAR TREASURY BOND TO BE SOLD NEXT WEEK YIELDED 648 IN WHENISSUED TRADING WHILE THE 10YEAR NOTE YIELDED 583 AND THE THREEYEAR NOTE YIELDED 458 ASIDE FROM THE REFUNDING NEWS TRADERS CONTINUED TO TRACK THE MINUTETOMINUTE MANEUVERING IN WASHINGTON AS THE WHITE HOUSE SCRAMBLED TO COME UP WITH ENOUGH VOTES IN THE SENATE TO PASS THE BUDGET NEARLY 2 BILLION IN ASSETBACKED SECURITIES WERE PRICED YESTERDAY AND SOLD QUICKLY IN A MARKET THAT HAS BEEN LACKING NEW DEALS THE LARGEST TRANSACTION CAME FROM CHRYSLER CORP WITH A 125 BILLION OFFERING OF CERTIFICATES BACKED BY AUTO AND TRUCK LOANS WHICH WAS CARVED INTO THREE PARTS TO TARGET DIFFERENT INVESTOR GROUPS THE CHRYSLER DEAL AMONG OTHERS YESTERDAY WAS PRICED AT MARKET LEVELS AND SOLD QUICKLY ACCORDING TO DEALERS AND SIGNALED THAT FEW INVESTORS WERE WORRIED ABOUT THE IMPLICATIONS OF A RECENT COURT DECISION ON THE ASSETBACKED MARKET THE LATE MAY DECISION BY THE 10TH US CIRCUIT COURT OF APPEALS RULED THAT SALES OF ACCOUNTS SUCH AS AUTO LOANS OR CREDITCARD LOANS ARE PLEDGES AND NOT TRUE SALES AND SO CAN BE SWEPT INTO THE ESTATE OF A COMPANY THAT FILES FOR BANKRUPTCY THAT MEANS IF AN ISSUER SUCH AS CHRYSLER ENTERS BANKRUPTCY PROCEEDINGS THE HOLDER OF AN ASSETBACKED SECURITY WOULD HAVE TO WAIT LIKE OTHER CREDITORS TO BE PAID THE CASE HAS GENERATED CONSIDERABLE DISCUSSION AMONG ASSETBACKED PARTICIPANTS BUT MOST HAVE DISCOUNTED ITS EFFECT ON ASSETBACKED STRUCTURES LEGAL EXPERTS MANY OF WHOM LEARNED OF THE CASE LATE LAST WEEK SAY THE LOGIC OF THE DECISION RUNS COUNTER TO OTHER COURT RULINGS AND THE REASONING BEHIND THE STANDARD TRUE SALE OPINIONS THAT ARE THE LEGAL UNDERPINNING OF ASSETBACKED TRANSACTIONS VIRTUALLY EVERYONE WHO HAS LOOKED AT THIS ISSUE SINCE THE CASE WAS DECIDED HAS CONCURRED THAT IT WAS INCORRECTLY DECIDED SAID TOM KUNZ A PARTNER WITH SKADDEN ARPS SLATE MEAGHER & FLOM AS EVIDENCE YIELD SPREADS ON ASSETBACKED SECURITIES OVER TREASURYS WITH COMPARABLE MATURITIES HAVE NOT BUDGED FROM HISTORICALLY TIGHT LEVELS MEANWHILE IN SECONDARY ACTIVITY 7 SECURITIES FOR AUGUST DELIVERY ISSUED BY THE THREE AGENCIES DROPPED LESS THAN 1/4 POINT GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED 4/32 LOWER AT 101 29/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES ENDED 4/32 LOWER AT 102 2/32 AND FEDERAL NATIONAL LOAN MORTGAGE CORP ISSUES SLIPPED 4/32 TO 101 26/32 THE CORPORATE BOND WAS AGAIN QUIET AS PRICES OF INVESTMENTGRADE ISSUES DECLINED WHILE PRICES OF JUNK BONDS ENDED RELATIVELY UNCHANGED ONLY ONE SIZABLE DEBT DEAL WAS PRICED YESTERDAY TELECOMMUNICATIONS CONCERN PACIFIC BELL HELD A COMPETITIVE BID FOR 100 MILLION OF 30YEAR DEBENTURES PACIFIC BELL IS A UNIT OF PACIFIC TELESIS GROUP PACIFIC BELL'S DEBENTURES WERE WON BY A GROUP OF DEALERS LED BY LEHMAN BROTHERS THE DEBENTURES WERE REOFFERED AT 96262 TO YIELD 718 065 PERCENTAGE POINT OVER COMPARABLE TREASURYS THE DEBENTURES NONCALLABLE FOR 10 YEARS ARE RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP KMART CORP BONDS IMPROVED SLIGHTLY ON NEWS THAT IT IS ATTEMPTING TO SELL ITS PAYLESS DRUGSTORES UNIT THE SALE IS EXPECTED TO BE POSITIVE FOR BONDHOLDERS IF IT GOES THROUGH AND PROCEEDS ARE USED TO PAY DOWN DEBT AND ADD CASH TO THE COMPANY'S BALANCE SHEET A TRADER SAID THE PRICE ON KMART'S 795 BONDS OF 2023 INCREASED BY ABOUT A POINT TO 10617 FOR A YIELD OF 743 THE TRADER SAID PRICES OF MUNICIPAL BONDS ENDED MOSTLY UNCHANGED AMONG ACTIVELY TRADED ISSUES THE LOS ANGELES DEPARTMENT OF WATER & POWER'S 5875 ELECTRIC PLANT REVENUE REFUNDING BONDS OF 2030 FINISHED UNCHANGED AT 100 7/8 TO YIELD 580 MARKET PARTICIPANTS HAVE BEEN HOLDING OFF ON BIG TRANSACTIONS AS THEY WATCH THE PROGRESS OF THERESIDENT'S BUDGET PACKAGE IN CONGRESS ALTHOUGH REJECTION OF THE BUDGET PACKAGE WOULD PROBABLY HIT ALL THE US CREDIT MARKETS TAXEXEMPT BONDS MIGHT BE PARTICULARLY VULNERABLE THAT'S BECAUSE THEY HAVE RALLIED IN RECENT MONTHS ON JITTERS ABOUT HIGHER FEDERAL INCOME TAXES UNDER THE ADMINISTRATION'S PROPOSALS THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9308050026 930805 BUSINESS BRIEF FRUEHAUF TRAILER CORP STOCK SALE CREDIT PLAN SET TO QUICKLY RAISE 45 MILLION FRUEHAUF TRAILER CORP SAID IT REACHED AN AGREEMENT IN PRINCIPLE TO RESTRUCTURE DEBT AND PUMP 45 MILLION IN CAPITAL INTO THE COMPANY IN THE NEXT 15 DAYS THE AGREEMENT INCLUDES A 20 MILLION PRIVATE SALE OF 133 MILLION SHARES OF NEW COMMON STOCK A SALE THAT IS BEING MADE WITHOUT PRIOR STOCKHOLDER APPROVAL ONLY BECAUSE ANY DELAY WOULD SERIOUSLY JEOPARDIZE THE FINANCIAL VIABILITY OF THE COMPANY FRUEHAUF SAID IN A STATEMENT THE NEW CAPITAL ALSO WILL INCLUDE A 25 MILLION REVOLVING CREDIT FACILITY FROM A CORESTATES FINANCIAL CORP UNIT IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE FRUEHAUF CLOSED AT 375 A SHARE UP 25 CENTS THE SOUTHFIELD MICH MAKER OF TRUCK TRAILERS ALSO SAID THAT RANDOLPH W LENZ BOARD CHAIRMAN WILL RESIGN AND THOMAS ROLLER WHO JOINED THE COMPANY AS PRESIDENT IN NOVEMBER WILL JOIN THE BOARD TEREX CORP GREEN BAY WIS HOLDS A 42 STAKE IN FRUEHAUF AND CONTROLS A MAJORITY OF ITS VOTING SHARES 9308050025 930805 US STEELMAKERS ASK ITC TO RETHINK IMPORT RULING WASHINGTON DOMESTIC STEELMAKERS ASKED THE US INTERNATIONAL TRADE COMMISSION TO RECONSIDER ITS DECISION THAT EFFECTIVELY REMOVED STIFF TARIFFS AGAINST SOME STEEL IMPORTS FROM 20 COUNTRIES AN ITC SPOKESWOMAN CALLED THE STEELMAKERS' REQUEST WHICH DIFFERS FROM AN APPEAL UNUSUAL ADDING THAT ALMOST NO SIMILAR REQUESTS HAVE BEEN MADE IN THE PAST THE STEELMAKERS BASED THEIR REQUEST ON THE PLUNGE IN STEEL STOCKS AFTER THE JULY 27 ITC RULING WHICH SAID STEEL IMPORTS DIDN'T HURT THE US INDUSTRY IN MORE THAN HALF OF THE 74 CASES FILED BY DOMESTIC PRODUCERS THE DRAMATIC BEHAVIOR OF IMPARTIAL PROFITDRIVEN CAPITAL INVESTORS ON WHOM THE US STEEL INDUSTRY DEPENDS FOR ITS CONTINUED VIABILITY HAS PROVIDED THE COMMISSION WITH AN UNPRECEDENTED REALWORLD EVALUATION CONFIRMING THE INJURIOUS EFFECTS OF UNFAIRLY TRADED HOTROLLED AND COLDROLLED IMPORTS THE REQUEST SAID THE COMMISSION NOW HAS A CLEAR AND CONVINCING BASIS UPON WHICH TO RESOLVE CONFLICTS IN THE EVIDENCE ALREADY IN THE RECORD OF THESE INVESTIGATIONS THE SPOKESWOMAN SAID SHE COULDN'T COMMENT ON WHAT ACTION THE ITC MIGHT TAKE IT IS DUE TO REPORT ITS OPINIONS AND DETERMINATIONS IN THE CASE TO THE COMMERCE DEPARTMENT BY AUG 9 9308050024 930805 AT&T UNVEILS THE SPEED OF ITS EXPERIMENTAL LASERS NEW YORK SCIENTISTS AT AMERICAN TELEPHONE & TELEGRAPH CO SAID THEY HAVE BUILT SOME OF THE WORLD'S FASTEST LASERS THAT COULD BE USED TO TRANSMIT DATA AT HIGH SPEEDS THE EXPERIMENTAL LASERS WHICH ARE ABOUT THE SIZE OF A GRAIN OF SALT AND MADE OF THIN LAYERS OF SEMICONDUCTOR MATERIALS TRANSMIT INFORMATION IN THE FORM OF LIGHT PULSES THROUGH OPTICAL FIBER LASERS ESSENTIALLY ACT AS LIGHT SOURCES AND ARE USED TO TRANSMIT DATA AS A SERIES OF ONES AND ZEROS DEPENDING ON WHETHER THE LASER IS IN AN ON OR OFF POSITION ONE SUCH LASER BUILT BY AT&T AND KNOWN AS A SINGLEMODE LASER TURNS ON AND OFF 225 BILLION TIMES A SECOND THE LASER WOULD CONCEIVABLY BE USED TO TRANSMIT DATA UP TO TENS OF KILOMETERS AND ARE EXPECTED TO BE THE WORKHORSES OF LOCAL DISTRIBUTION SYSTEMS OR FOR TRANSMITTING VIDEO SIGNALS THE COMPANY SAID ANOTHER LASER KNOWN AS A MULTIMODE LASER BECAUSE IT USES LIGHT PULSES OF DIFFERENT FREQUENCIES WOULD BE MORE SUITABLE FOR SHORTER DISTANCES FOR TRANSMITTING DATA WITHIN A BUILDING FOR INSTANCE ITS SPEED 25 BILLION ONOFF CYCLES PER SECOND AT&T BELIEVES THAT THESE LASERS COULD POTENTIALLY TRANSMIT THE TEXT FROM 600 VOLUMES OF THE ENCYCLOPEDIA BRITANNICA IN ONE SECOND CURRENT COMMERCIAL DATA LINKS WHICH USE LIGHTEMITTING DIODES INSTEAD OF LASERS CAN TRANSMIT THE EQUIVALENT OF SIX VOLUMES OF THE ENCYCLOPEDIA IN A SECOND 9308050023 930805 HEARD ON THE STREET ADT FINDS INVESTORS FORGIVE AND FORGET BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL HAS WALL STREET DEVELOPED AMNESIA ON ADT LTD THE HOMESECURITY AND AUTOAUCTIONS COMPANY HEADED BY SWASHBUCKLING FINANCIER MICHAEL ASHCROFT YESTERDAY COMPLETED THE SALE OF 750 MILLION IN STOCK AND JUNK DEBT DESPITE AN UNCOMMONLY CHECKERED HISTORY ONCE A STOCKMARKET HIGHFLIER ADT SHARES PEAKED AT 32 UNDER MR ASHCROFT IN 1990 BEFORE PLUNGING THE NEXT YEAR TO 5 AMID THE CONGLOMERATE'S SOURED INVESTMENTS AND QUESTIONS ABOUT ITS ACCOUNTING METHODS IT CLOSED YESTERDAY ON THE NEW YORK STOCK EXCHANGE AT 8 1/4 BUT SOME BIG INVESTORS SEEM WILLING TO LET BYGONES BE BYGONES WE FULLY EXPECT THERE WILL BE A TURNAROUND SAYS MICHAEL GAFFNEY A PORTFOLIO MANAGER WITH ALLIANCE CAPITAL MANAGEMENT ONCE ADT'S LARGEST HOLDER WHICH BOUGHT THE STOCK AFTER ITS FALL AND HOPES FOR A REBOUND IT SEEMS WALL STREET HAS DECIDED THAT MR ASHCROFT THE CHAIRMAN WHO CAME UP WITH THE STRATEGY THAT GOT ADT IN TROUBLE IN THE FIRST PLACE IS JUST THE GUY TO LEAD A TURNAROUND IF THERE'S ONE THING ASHCROFT KNOWS IT'S SERVICE COMPANIES AND HE'S PICKED TWO GOOD ONES HOME SECURITY AND AUTO AUCTIONS SAYS JEFF KESSLER AN ANALYST WITH LEHMAN BROTHERS THE BULLISH PITCH IS THAT ADT FORMERLY HEADQUARTED IN THE UNITED KINGDOM BEFORE A TRANSPLANT TO BOCA RATON FLA IS POISED FOR GROWTH INVESTORS SAY IT WILL BENEFIT AS MORE CONSUMERS BURGLARPROOF THEIR HOMES AT A PRICE AROUND 10 TIMES ESTIMATES FOR THIS YEAR'S PERSHARE EARNINGS THEY SAY THE STOCK IS A BARGAIN THE COMPANY'S 125 BILLION RESTRUCTURING COMPLETED YESTERDAY INCLUDES 150 MILLION IN STOCK UNDERWRITTEN BY FIRST BOSTON 600 MILLION IN DEBT THROUGH MERRILL LYNCH AND A NEW 500 MILLION BANK LOAN THE BALANCE SHEET OVERHAUL WILL GIVE ADT A LONGTERM STABLE FINANCIAL STRUCTURE MR ASHCROFT SAID IN A STATEMENT HE DECLINED TO BE INTERVIEWED FOR THIS COLUMN AFTER SEVERAL REQUESTS WHY IS ADT GETTING THE BENEFIT OF THE DOUBT ON WALL STREET AFTER ALL INSTITUTIONAL INVESTORS ARE STILL FUMING ABOUT THE DISCLOSURE TWO YEARS AGO THAT 100 MILLION IN ADT'S PROFITS HAD COME FROM ACCOUNTING METHODS ALLOWABLE IN THE UK BUT NOT IN THE US OTHER INVESTORS DISTRUST THE COMPANY BECAUSE MR ASHCROFT SOLD HIS 11 MILLION SHARES AT A PRICE OF 31 EACH TO LAIDLAW INC IN MID1990 ONLY TWO MONTHS BEFORE THE STOCK TUMBLED ADT INSISTS THAT MR ASHCROFT WASN'T BAILING OUT IN FACT IT SAYS HE HAD AN OPTION TO BUY BACK THE SHARES AT 31 ADT'S RISE FALL AND RECENT RESURGENCE OFFER SOME LESSONS ABOUT THE PERILS OF INVESTING IN FOREIGN COMPANIES THAT ARE SUBJECT TO DIFFERENT ACCOUNTING RULES SCUDDER STEVENS & CLARK WHICH BOUGHT ADT AT AROUND 20 LEARNED THE LESSON THE HARD WAY SAYS SUSAN EGAN AN ANALYST EVERYTHING LOOKED SO GOOD ON PAPER SHE SAYS BUT MANY OF ADT'S INVESTMENTS TURNED OUT TO BE BAD THESE DAYS INVESTORS APPARENTLY ARE TAKING COMFORT THAT AFTER HIS 1990 SELLOUT MR ASHCROFT HAS MOVED BACK INTO THE STOCK NOW OWNING MORE THAN TWO MILLION SHARES THERE'S A MUCH HIGHER DEGREE OF SAFETY IN THIS STOCK THAN THERE WAS THREE YEARS AGO SAYS MR KESSLER I VIEW THE COMPANY POSITIVELY ADDS JOHN HURFORD A PORTFOLIO MANAGER AT BEA ASSOCIATES WHO BEGAN BUYING THE STOCK AFTER MR ASHCROFT DID I THINK MANAGEMENT IS SMART AND THEY ARE ADDRESSING THEIR PROBLEMS INVESTORS WILL BE TAKING FEWER CHANCES THIS TIME AROUND RESTRICTIVE COVENANTS IN THE NEW LOAN ARRANGED BY CHEMICAL BANK PRACTICALLY LEAVE THE COMPANY TIED AND BOUND THE COVENANTS PREVENT THE COMPANY FROM DOING MUCH OF ANYTHING BUT STICKING TO ITS KNITTING ITS SECURITY AND AUTOAUCTION BUSINESSES ADT WAS THE CROWN JEWEL IN A COLLECTION OF COMPANIES THAT MR ASHCROFT A CHARISMATIC ENTREPRENEUR FROM BELIZE ON THE CARIBBEAN BEGAN ASSEMBLING IN 1977 AT THE AGE OF 31 ALONG WITH AN ASSORTMENT OF BUSINESSSERVICES COMPANIES MR ASHCROFT CULTIVATED A HIGH SOCIAL PROFILE HE ONCE APPEARED IN THE PRESS LEAVING THE BALLET WITH PRINCESS DIANA HE BOASTED HIGHPLACED FRIENDS INCLUDING DENNIS THATCHER MARGARET THATCHER'S HUSBAND THE PEAK OF MR ASHCROFT'S SPENDING SPREE CAME IN 1987 WHEN HE BOUGHT TWO BUSINESSES BURGLARALARM COMPANY ADT LTD AND A BRITISH AUTOAUCTION BUSINESS FOR ABOUT 1 BILLION TO FINANCE THE ACQUISITIONS MR ASHCROFT ISSUED 400 MILLION IN CONVERTIBLE PREFERENCE SHARES HE ALSO TOOK OUT A 550 MILLION BANK LOAN ADT ASSUMING THAT ITS STOCK PRICE WOULD CONTINUE TO RISE WAS BETTING THAT IT WOULD NEVER BE FORCED TO PAY THE 38 PREMIUM ATTACHED TO THE PREFERENCE STOCK HOWEVER THE STOCK DIDN'T RISE HIGH ENOUGH AND STAY THERE AS MR ASHCROFT HAD HOPED HIS STRATEGY WAS BEGINNING TO UNRAVEL THEN THE BOMBSHELL IN SUMMER 1990 ADT DISCLOSED TO US INVESTORS IN A SECURITIES AND EXCHANGE COMMISSION FILING THAT IT HAD BOOKED 100 MILLION IN PROFITS UNDER UK ACCOUNTING RULES THAT WOULDN'T HAVE BEEN ALLOWED UNDER US ACCOUNTING STANDARDS THAT AUGUST MR ASHCROFT SOLD HIS HOLDINGS IN THE COMPANY TO CANADA'S LAIDLAW FOR 31 A SHARE OR 34 MILLION BY YEAR'S END THE STOCK HAD FALLEN TO 20 3/8 IT FELL MORE AFTER ADT POSTED A 564 MILLION LOSS UNDER US ACCOUNTING STANDARDS ACCORDING TO SEC FILINGS ADT TOOK A WRITEDOWN OF 1253 MILLION ON AN INVESTMENT IN AUCTIONHOUSE CHRISTIE'S INTERNATIONAL AND A 121 MILLION LOSS ON REALESTATE CONCERN LEP GROUP IN 1991 COMPANY OFFICIALS NOTE THAT ADT WOULDN'T HAVE DONE THE TRANSACTIONS LEADING TO THE LOSS IF IT HAD BEEN SUBJECT TO US ACCOUNTING STANDARDS THE STOCK FELL AS LOW AS 5 SUDDENLY RUMORS SURFACED ABOUT THE POSSIBILITY OF BANKRUPTCY MATURITY DATES FOR THE BANK LOAN AND THE PREFERENCE SHARES USED TO PAY FOR THE COMPANY WERE LOOMING JUST WHEN IT LOOKED LIKE THERE WAS NOTHING BUT BAD NEWS FOR ADT MR ASHCROFT BEGAN BUYING ITS SHARES IF THERE IS ONE THING INSTITUTIONAL INVESTORS KNOW HOW TO EMULATE IT'S ANOTHER SAVVY INVESTOR REMEMBERING MR ASHCROFT'S PRESCIENT TIMING ON HIS SALE OF THE STOCK INSTITUTIONAL INVESTORS FOLLOWED SUIT NOW WITH ITS RESTRUCTURING ADT HAS CLEANED UP ITS ACT THE BULLISH INVESTORS SAY IT ELECTED MORE INDEPENDENT DIRECTORS TO ITS BOARD WHICH WAS PREVIOUSLY DOMINATED BY ADT EXECUTIVES AND SINCE ITS RELOCATION TO THE US THE COMPANY MUST CONFORM ITS ACCOUNTING TO US STANDARDS INVESTORS LOVE THE PROSPECTS FOR ADT'S RESIDENTIAL ALARM BUSINESS THE INDUSTRY HAS BEEN DOMINATED BY LOCAL BUSINESSES CONNECTED TO OTHER HOUSING CONTRACTORS BUT LEE ALLEN A RESEARCH CONSULTANT IN BOSTON WHO HAS TRACKED ADT FOR BIG INVESTORS SAYS A NATIONAL OPERATOR LIKE ADT HAS ADVANTAGES OVER LOCAL OUTFITS AND CAN OFFER LOWER INSTALLATION CHARGES AND MORE DEPENDABILITY IF MR ASHCROFT CONCENTRATES ON BUILDING ADT'S ALARM BUSINESS THE STOCK COULD RISE TO 12 NEXT YEAR SAYS LEHMAN'S MR KESSLER THAT WOULDN'T COME NEAR ADT'S HIGHS OF 1990 BUT SAYS MR KESSLER WITH TOUGHER ACCOUNTING OF ITS FINANCES THE STOCK HAS A CHANCE OF AVOIDING ANOTHER CRASH AMTECH'S WILD TRADING CONTINUES STOKED BY BULLS AND BEARS YESTERDAY THE STOCK ROSE 2 5/8 TO 29 MORE THAN RECOVERING FROM TUESDAY'S PLUNGE IN WHICH THE STOCK WAS AS LOW AS 23 3/4 AT ONE POINT VOLUME WAS MORE THAN TRIPLE NORMAL FOR THE SECOND DAY CAUSING ALL THE GYRATION IS A SERIES OF NEWS REPORTS AND CLARIFICATIONS THAT HAVE LEFT TRADERS' HEADS SPINNING FIRST A NEWSSERVICE REPORT CONTENDED THAT AMTECH JUMPED THE GUN IN ANNOUNCING THAT ITS AUTOMATIC IDENTIFICATION SYSTEM TECHNOLOGY HAD BEEN ADOPTED AS A STANDARD IN EUROPE THE PLUNGE CAUSED BY THE REPORT DELIGHTED SHORTSELLERS WHO HAVE BUILT UP A SHORT POSITION OF 34 MILLION SHARES IN THE DALLAS COMPANY AND HAD BEEN SQUEEZED BY AMTECH'S RALLY AFTER ITS ANNOUNCEMENT BUT YESTERDAY THE INTERNATIONAL UNION OF RAILWAYS ISSUED A CLARIFICATION THAT ENDORSED AMTECH'S VERSION OF EVENTS IN THE ANNOUNCEMENT AND THE STOCK RECOVERED HERE'S WHAT HAPPENED TUESDAY'S NEWS REPORT WAS BASED ON A LETTER WRITTEN BY ELISABETH ROEPSTORFF OF THE PARISBASED RAILWAY UNION WHICH STATED THAT PREMATURE AND INCORRECT INFORMATION HAS REACHED THE PRESS MS ROEPSTORFF SAYS TOM BARTON A SHORTSELLER AT WHITE ROCK CAPITAL IN DALLAS REQUESTED THE LETTER MR BARTON WOULDN'T COMMENT BUT THE LETTER DIDN'T REFER TO AMTECH'S ANNOUNCEMENT AT ALL INSTEAD A UIC SPOKESMAN SAID IT WAS DIRECTED AT AN ERRONEOUS REPORT IN A FRENCH NEWSPAPER THAT SAID THE COMPANY'S EUROPEAN JOINT VENTURE RECEIVED A FIRM ORDER FOR THE TECHNOLOGY IN OTHER WORDS SAY BULLS IT WAS MUCH ADO ABOUT NOTHING WHY DIDN'T MEDCO RISE MORE AFTER MERCK'S TAKEOVER MOVE MEDCO'S NASDAQTRADED SHARES HAVE RISEN TO ONLY 34 3/4 SINCE THE JULY 28 TAKEOVER ANNOUNCEMENT A WHOPPING 4 1/4 SHORT OF THE ANNOUNCED 39ASHARE PRICE THE REASON THE COMPLEX LOTTERYBASED STRUCTURE OF THE TAKEOVER AGREEMENT HAS SCARED OFF WALL STREET'S RISK ARBITRAGERS WHO ROUTINELY BID UP THE PRICES OF TAKEOVER TARGETS IN THE 1980S BY BUYING THE SHARES OF THE TARGET AND SELLING THOSE IN THE ACQUIRER THAT LOCKED IN A PROFIT IF THE DEAL CLOSED AND PUSHED UP THE TARGET'S STOCK TO NEAR THE DEAL PRICE BUT WITH SCANT ARB MONEY IN THIS DEAL MEDCO STOCK MAY STAY LOWER THAN EXPECTED INDEED SOME ARBS FIGURE THAT INVESTORS WHO BUY MEDCO NOW WILL GET A RETURN BETWEEN 30 AND 35 ONCE THE DEAL GOES THROUGH IN FOUR MONTHS OR SO UNDER THE AGREEMENT MEDCO HOLDERS MAY ELECT TO GET 39 IN CASH OR ABOUT 12 SHARES OF MERCK STOCK FOR EACH OF THEIR SHARES PROVIDED THAT 60 OF MEDCO SHARES DECIDE TO TAKE THE MERCK STOCK BUT IF TOO MANY MEDCO HOLDERS TAKE THAT OPTION WHICH IS LIKELY IF MERCK CURRENTLY 31 1/8 TOPS 32 1/8 MERCK CAN DISTRIBUTE THE NEW SHARES BY LOTTERY THE UNCERTAINTY SURROUNDING A LOTTERY SOMETHING THE ARBS RARELY DEALT WITH IN 1980S MEGAMERGER DAYS MAKES IT IMPOSSIBLE FOR THE ARBS TO KNOW HOW MANY MERCK SHARES TO SELL SINCE THEY DON'T KNOW HOW MANY THEY'LL GET WHEN THE MERGER CLOSES WE DON'T FEEL AS COMFORTABLE SELLING MERCK STOCK SAYS ONE ARB SINCE WE DON'T KNOW HOW WE WILL BE TREATED YEAR ENDED DEC 31 1992 FIRST QUARTER MARCH 31 1993 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 9308050022 930805 HALIFAX NET FELL 77 IN 1ST PERIOD ALEXANDRIA VA HALIFAX CORP A TECHNICAL AND FACILITIES SUPPORT SERVICES CONCERN REPORTED A 77 DROP IN NET INCOME FOR ITS FISCAL FIRST QUARTER DUE TO POOR SALES IN ITS ELECTRONICS SERVICES DIVISION HALIFAX HAD NET INCOME IN THE QUARTER ENDED JUNE 30 OF 47000 OR FOUR CENTS A SHARE DOWN FROM 200000 OR 17 CENTS A SHARE A YEAR EARLIER REVENUE FELL 4 TO 135 MILLION FROM 141 MILLION HALIFAX SHARES DROPPED 125 CENTS TO CLOSE AT 750 IN COMPOSITE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE PRESIDENT HOWARD MILLS SAID THE COMPANY'S JULY 1 PURCHASE OF THE EAI SERVICES DIVISION IS EXPECTED TO IMPROVE THE NEXT QUARTER'S RESULTS 9308050021 930805 HOUSE SENATE CONFEREES AGREE ON SERVICE MEASURE WASHINGTON HOUSE AND SENATE NEGOTIATORS AGREED TO LEGISLATION THAT WOULD PROVIDE EDUCATIONAL ASSISTANCE TO YOUNG PEOPLE WHO PERFORM COMMUNITYSERVICE WORK IN THE BIGGEST CONCESSION HOUSE CONFEREES AGREED TO ACCEPT SENATE PROVISIONS SETTING SPENDING CAPS OF 300 MILLION FOR FISCAL 1994 500 MILLION FOR FISCAL 1995 AND 700 MILLION FOR FISCAL 1996 THE HOUSE BILL AUTHORIZED SPENDING AT 394 MILLION IN THE FIRST YEAR BUT HADN'T SPECIFIED AMOUNTS FOR THE SUBSEQUENT TWO YEARS THE OTHER DIFFERENCES IN THE TWO BILLS WERE MINOR AND EASILY RESOLVED THE HOUSE AND SENATE ARE EXPECTED TO APPROVE THE CONFERENCE REPORT AND SEND THE LEGISLATION TO PRESIDENT CLINTON BEFORE THE START OF THE AUGUST RECESS AT THE END OF THE WEEK THE LEGISLATION WOULD PROVIDE PARTICIPANTS WITH 4725 A YEAR FOR TWO YEARS IN AID FOR COLLEGE OR OTHER POSTSECONDARY EDUCATION IT ALSO WOULD PROVIDE A MINIMUMWAGE STIPEND AND SOME HEALTH AND CHILDCARE BENEFITS ABOUT 100000 PEOPLE COULD TAKE PART IN THE PROGRAM IN THE FIRST THREE YEARS ACCORDING TO CONGRESSIONAL ESTIMATES 9308050020 930805 THORN APPLE VALLEY INC SOUTHFIELD MICH THORN APPLE VALLEY INC SAID ITS BOARD HAS AUTHORIZED THE BUYBACK OF AS MUCH AS 10 MILLION OF COMMON STOCK THE TIMING AND VOLUME OF PURCHASES UNDER THIS PROGRAM WILL DEPEND ON MARKET CONDITIONS THORN APPLE VALLEY SAID AT YESTERDAY'S CLOSING PRICE OF 1725 THE BUYBACK WOULD TRANSLATE TO ABOUT 579000 SHARES OR 10 OF THE SHARES OUTSTANDING THORN APPLE VALLEY MAKES CONSUMER PACKAGED MEAT AND POULTRY PRODUCTS 9308050019 930805 WHO'S NEWS SONY'S COLUMBIA PICTURES UNIT EXPECTED TO NAME HENSON PRESIDENT OF PRODUCTION BY LAURA LANDRO STAFF REPORTER OF THE WALL STREET JOURNAL SONY CORP'S COLUMBIA PICTURES UNIT IS EXPECTED TO NAME LISA HENSON PRESIDENT OF PRODUCTION A MOVE THAT WOULD MAKE THE FORMER WARNER BROS EXECUTIVE ONE OF THE HIGHESTRANKING WOMEN IN THE MOTION PICTURE INDUSTRY MS HENSON THE 33YEAROLD DAUGHTER OF THE LATE JIM HENSON MUPPETS CREATOR WOULD SUCCEED MICHAEL NATHANSON 37 A VETERAN OF COLUMBIA PICTURES WHO HAS RISEN THROUGH THE RANKS THERE SURVIVING SEVERAL CHANGES OF OWNERSHIP AND MANAGEMENT MARK CANTON CHAIRMAN OF COLUMBIA PICTURES SINCE OCTOBER 1991 WAS MS HENSON'S BOSS AT WARNER BROS AND IT HAS BEEN LONG RUMORED THAT HE MIGHT BRING HER TO JOIN HIS TEAM AT COLUMBIA COLUMBIA AND SONY DECLINED TO COMMENT ON EITHER MS HENSON OR MR NATHANSON HOWEVER COMPANY EXECUTIVES CONFIRMED PRIVATELY THAT THEY ARE CLOSE TO AN AGREEMENT WITH MS HENSON AND THAT MR NATHANSON IS NEGOTIATING FOR A SENIOR POSITION AT THE STUDIO THAT WOULD INVOLVE MARKETING AND DISTRIBUTION AS WELL AS PRODUCTION INDUSTRY EXECUTIVES SPECULATED THAT MS HENSON'S APPOINTMENT MAY BE THE FIRST OF SEVERAL MANAGEMENT CHANGES AT COLUMBIA AND ITS SISTER STUDIO TRISTAR PICTURES IN COMING MONTHS THOUGH THE TWO SONY STUDIOS ARE HAVING MIXED RESULTS WITH THE PROFITABILITY OF THEIR MOVIES COLUMBIA AND TRISTAR COMBINED LEAD THE BOX OFFICE THIS YEAR WITH A 206 SHARE COLUMBIA'S HIGHLY PUBLICIZED THE LAST ACTION HERO IS A BIG DISAPOINTMENT IT COST MORE THAN 90 MILLION TO PRODUCE AND HAS GROSSED LESS THAN 50 MILLION IN THE US IN CONTRAST IN THE LINE OF FIRE PRODUCED BY COLUMBIA'S PARTLY OWNED CASTLE ROCK UNIT HAS SOLD NEARLY 70 MILLION IN TICKETS AND IS STILL GOING STRONG AT THE BOX OFFICE TRISTAR MEANWHILE HAS TWO CURRENT HITS SLEEPLESS IN SEATTLE AND CLIFFHANGER AFTER A DRY SPELL MS HENSON WHO AT WARNER WAS INVOLVED IN SUCH FILMS AS THE LETHAL WEAPON SERIES AND THE SECOND BATMAN MOVIE COULD HELP BOOST THE CREATIVE JUICES AT COLUMBIA WHERE MR CANTON HAS MADE NO MAJOR PERSONNEL CHANGES SINCE HIS ARRIVAL JOEL SILVER THE PRODUCER WHO WORKED CLOSELY WITH HER ON THE LETHAL WEAPON AND OTHER FILMS SAYS SHE HAS A GREAT FEEL FOR AND UNDERSTANDING OF THE PROCESS OF PRODUCTION SHE'S THE PERSON YOU WANT TO HAVE ON YOUR PROJECT SHE ISN'T JUST A CHEERLEADER SHE UNDERSTANDS WHAT HAS TO BE DONE AND WILL DO WHATEVER SHE HAS TO TO GET IT DONE MS HENSON THOUGH SHE GOT A FOOT IN THE DOOR IN HOLLYWOOD PARTLY THROUGH HER FAMOUS NAME HAS GAINED A REPUTATION AS A TALENTED CREATIVE EXECUTIVE A GRADUATE OF HARVARD AND AN EDITOR OF ITS HARVARD LAMPOON MAGAZINE SHE JOINED WARNER BROS A TIME WARNER INC UNIT IN 1983 AS A PRODUCTION ASSISTANT AND WON SEVERAL PROMOTIONS BEFORE BEING NAMED EXECUTIVE VICE PRESIDENT OF PRODUCTION LAST YEAR MS HENSON SAID IN AN INTERVIEW THIS MONTH THAT SHE LEFT WARNER BECAUSE SHE HAD BEEN THERE SINCE COLLEGE AND FELT SHE WAS READY FOR A CHANGE I HAD ONLY A GOOD EXPERIENCE THERE SHE SAID BUT ASSOCIATES SAY SHE ALSO WAS UNHAPPY THAT SHE WASN'T GIVEN THE STUDIO'S TOP PRODUCTION JOB WHICH WENT TO BRUCE BERMAN MS HENSON RECENTLY HAS BEEN TRAVELING INCLUDING A TRIP TO TIBET AND WITH HER FOUR SIBLINGS SERVES ON BOARD OF JIM HENSON PRODUCTIONS WHICH IS RUN BY HER BROTHER BRIAN MS HENSON WOULD BE THE ONLY WOMAN TO HOLD THE PRESIDENT OF PRODUCTION JOB AT A MAJOR STUDIO THE HIGHESTRANKING WOMAN IN THE INDUSTRY AT PRESENT IS SHERRY LANSING WHO IS HEAD OF THE MOTION PICTURE DIVISION AT PARAMOUNT COMMUNICATIONS INC'S PARAMOUNT PICTURES UNIT MR NATHANSON HAS WEATHERED A HALFDOZEN CHANGES OF TOP MANAGEMENT AT COLUMBIA AND TWO CHANGES IN OWNERSHIP OF THE STUDIO THE SHIFT IN HIS POSITION COMES AS COLUMBIA HAS BEEN THE FOCUS OF WILD SPECULATION IN HOLLYWOOD LINKING EXECUTIVES IN THE INDUSTRY TO HEIDI FLEISS WHO WAS ARRESTED IN JUNE FOR ALLEGEDLY RUNNING A PROSTITUTION RING THOUGH NEITHER MR NATHANSON NOR THE STUDIO HAVE BEEN PUBLICLY NAMED MR NATHANSON APPARENTLY FELT CONCERNED ENOUGH ABOUT RUMORS THAT HE USED CORPORATE FUNDS TO PROCURE PROSTITUTES TO ISSUE A STATEMENT THROUGH HIS LAWYER DENYING ANY CONNECTION AND SAYING HE HAS NOT DONE ANYTHING THAT SHOULD CAUSE ANY CONCERN ON BEHALF OF COLUMBIA MR NATHANSON WASN'T AVAILABLE FOR COMMENT ON THE REPORT BUT HIS ATTORNEY HOWARD WEITZMAN CONFIRMED THE STATEMENT AND SAID MR NATHANSON FELT THE RUMORS HAD TO BE ADDRESSED BECAUSE THEY WERE GETTING TOTALLY OUT OF HAND AND WERE ALL FALSE SONY AND COLUMBIA DECLINED TO COMMENT THOUGH COMPANY OFFICIALS SAID THEY HAVE NO REASON TO BE CONCERNED AND THAT THE CHANGE IN MR NATHANSON'S POSITION IS A PROMOTION THAT IS IN NO WAY CONNECTED WITH THE RUMORS MEG COX CONTRIBUTED TO THIS ARTICLE 9308050018 930805 WHAT'S NEWS BUSINESS AND FINANCE CLINTON AND DEMOCRATIC LEADERS APPEARED TO HAVE FIRMED UP A FRAGILE MAJORITY FOR A 496 BILLION DEFICITREDUCTION PLAN ON WHICH A HOUSE VOTE IS EXPECTED TODAY CLINTON PLACATED WAVERING DEMOCRATS BY SIGNING AN EXECUTIVE ORDER TO HELP REIN IN THE GROWTH OF FEDERAL BENEFIT PROGRAMS DELTA AIR LINES SLASHED DOMESTIC FALL FARES BY AS MUCH AS 35 FIRING THE FIRST SHOT IN WHAT COULD BE A SEASON OF HEAVY DISCOUNTS FOR LEISURE TRAVEL CONTINENTAL NORTHWEST AND AMERICA WEST MATCHED THE CUTS OTHER CARRIERS SAID THEY WERE STUDYING THE MOVE ECONOMIC ACTIVITY CONTINUES TO INCREASE SLOWLY TO MODERATELY ACROSS THE NATION ACCORDING TO A FEDERAL RESERVE SURVEY OF ITS 12 DISTRICT BANKS KMART'S PLAN TO SELL ITS PAYLESS DRUGSTORE UNIT COULD MARK THE START OF A HUGE CORPORATE RESTRUCTURING THAT MAY REFOCUS THE COMPANY ON ITS TROUBLED DISCOUNT STORES AND SHED SOME NONCORE UNITS FOR MUCHNEEDED CASH MUNICIPAL SECURITIES REGULATORS PROPOSED TO STILL ALLOW AN UNDERWRITER TO CONTRIBUTE TO POLITICIANS BUT ONLY IF THE MONEY ISN'T INTENDED TO SWAY THE OFFICIALS TO GIVE THE FIRM BUSINESS LOCKHEED REDUCED ITS PLANNED 1994 PRODUCTION OF F16 FIGHTER JETS BY ABOUT 23 PUSHING SOME OF THE WORK INTO SUBSEQUENT YEARS THE COMPANY'S STOCK FELL 4 OR 6 TO 6250 BMW SAID THAT IT EXPECTS NORTH AMERICAN COMPANIES TO SUPPLY 80 OF THE PARTS OF THE VEHICLES BMW WILL BUILD AT ITS FIRST US ASSEMBLY PLANT GM CAN'T BE FORCED TO KEEP ITS PLANT IN YPSILANTI MICH DESPITE THE YEARS OF TAX BREAKS IT GOT AS AN INCENTIVE TO STAY A MICHIGAN APPEALS COURT RULED THE SELLING PACE OF NORTH AMERICANBUILT CARS AND LIGHT TRUCKS PICKED UP SLIGHTLY IN LATE JULY OVER THE YEAREARLIER PERIOD BUT TRAILED THE SELLING RATE OF THE PREVIOUS 30 DAYS BELL ATLANTIC ANNOUNCED AN ALLIANCE WITH A TINY NEW JERSEY COMPANY TO BLANKET THE NEW YORK CITY AREA WITH AN INTERACTIVE WIRELESS TV SERVICE THAT WOULD COMPETE WITH CABLE TV BEAR STEARNS'S TWO TOP EXECUTIVES WHO ACKNOWLEDGED THEY MADE TOO MUCH MONEY LAST YEAR WILL GET EVEN MORE THIS TIME AROUND WITH FISCAL 1993 PAY PACKAGES OF 159 MILLION APIECE PEOPLE CLOSE TO THE FIRM SAY MICROSOFT PLANS TO BECOME A MINORITY INVESTOR IN MANY MULTIMEDIA VENTURES A DEPARTURE FROM PAST STRATEGY ALSO MICROSOFT PLANS TO BUY ABOUT HALF OF CONTINUUM A MULTIMEDIA FIRM PRIVATELY FINANCED BY ITS CHAIRMAN SONY'S COLUMBIA PICTURES IS EXPECTED TO NAME LISA HENSON PRESIDENT OF PRODUCTION A MOVE THAT WOULD MAKE HER ONE OF THE HIGHESTRANKING WOMEN IN THE MOTION PICTURE INDUSTRY THE CFTC IS ENACTING SWEEPING RULES THAT TOUGHEN UP ITS MONITORING OF FUTURES TRADING THE RULES UNDER INCREASED POWERS PROVIDED BY CONGRESS WILL REQUIRE THE EXCHANGES TO MAKE ADJUSTMENTS IN HOW THEY DO BUSINESS AND DEAL WITH DISCIPLINARY CASES GENERAL RE AND RELIANCE GROUP HOLDINGS POSTED HIGHER SECONDQUARTER PROFITS WITH GENERAL RE'S 16 INCREASE SURPRISING ANALYSTS AND PUSHING ITS STOCK UP 250 TO 12550 BONDS LEHMAN BROTHERS TREASURY INDEX 536822 OFF 2372 COMMODITIES OIL 1780 A BARREL OFF FIVE CENTS DOW JONES FUTURES INDEX 13218 OFF 014 SPOT INDEX 12613 OFF 047 DOLLAR 10488 YEN UP 044 17090 MARKS UO 00020 9308050017 930805 POLITICS & POLICY DOING THE DEAL THE DEFICITREDUCTION CONFERENCE NEGOTIATORS WILL FORGIVE MITCHELL IF HE DELIVERS SENATE BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON GEORGE MITCHELL HASN'T MADE MANY FRIENDS IN THE FINAL TENSE MANEUVERING TO PASS PRESIDENT CLINTON'S ECONOMIC PROGRAM THE QUESTION IS WHETHER THE SENATE MAJORITY LEADER HAS FOUND VOTES TIME AFTER TIME IN RECENT DAYS MR MITCHELL HAS PRESSED HIS FELLOW NEGOTIATORS TO ADD ONE TAX BREAK OR ANOTHER TO PLACATE THIS OR THAT SENATOR HE INSISTED ON A LOW FUELSTAX INCREASE TO ASSUAGE TWO SENATORS THEN LAST FRIDAY WHEN THE OTHER LEAD BARGAINERS THOUGHT THE DEAL WAS DONE HE AGAIN SPOKE ON BEHALF OF SOME UNIDENTIFIED BALKY DEMOCRAT TO SAY THE PLAN DIDN'T HIT CLOSE ENOUGH TO THE PRESIDENT'S 500 BILLION DEFICITREDUCTION TARGET HIS CONSTANT REQUESTS HAVE BEEN A SOURCE OF BUILDING ANNOYANCE AMONG THE OTHER CONGRESSIONAL LEADERS AND WHITE HOUSE OFFICIALS WHO HAVE SPENT HOURS HUDDLED IN HIS OFFICE TRYING TO COMPLETE THE DEAL HOUSE WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI HAS BEEN HEARD TO ASK DERISIVELY WHAT'S GEORGIEPORGIE HAVE TO SAY MORE THAN ONCE THE CHAIRMAN HAS SWEPT UP HIS PAPERS AND STORMED OUT OF LEADERSHIP SESSIONS IN ANGER BUT ALL WILL BE FORGOTTEN IF MR MITCHELL DELIVERS A MAJORITY WHEN THE SENATE VOTES FOR THE PACKAGE AS EXPECTED TOMORROW WE WILL PASS IT MR MITCHELL PREDICTS CONFIDENTLY YESTERDAY'S CONVERSION OF ARIZONA SEN DENNIS DECONCINI ONE OF THOSE HE HAD HELPED MADE THAT PREDICTION MORE LIKELY THE ECONOMIC PLAN WITH ITS MIX OF TAX INCREASES TAX BREAKS AND SPENDING CUTS HAS BECOME THE ULTIMATE TEST OF MR MITCHELL'S ABILITY TO SELL THE LEGISLATIVE PROGRAM OF A DEMOCRATIC PRESIDENT AND A NOT VERY POPULAR PRESIDENT AT THAT BY ALL ACCOUNTS MR MITCHELL HAS BEEN A GOOD SOLDIER TO DATE BUT IT'S A NEW ROLE FOR THE MAN WHO FOR FOUR YEARS WAS ARGUABLY HIS PARTY'S AGENDASETTER ADROITLY LEADING THE OPPOSITION TO REPUBLICAN GEORGE BUSH GOP SENATORS WHO SAY MR MITCHELL IS FAIR BUT PARTISAN WONDER IF HE WASN'T HAPPIER THEN ON THE BUDGET BILL HE HAS A NUMBER OF WOBBLY DEMOCRATS AND NO REPUBLICAN SUPPORT TO FALL BACK ON WHILE A SENATE DEFEAT WOULD BE DEVASTATING TO MR CLINTON MR MITCHELL WOULD BE A BIG LOSER AS WELL AVOIDING THAT OUTCOME TESTS THE LIMITS OF THE VERY LIMITED POWERS OF HIS OFFICE ALL THE LEADER REALLY HAS IS HIS PERSUASIVE ABILITY SAYS SOUTH DAKOTA SEN TOM DASCHLE A MITCHELL LIEUTENANT ON THE DEFICITREDUCTION BILL MR MITCHELL HAS FACED ALL DEGREES OF REBELLIOUSNESS FROM WITHIN HIS RANKS FROM THE USUALLY SUPPORTIVE SEN MAX BAUCUS OF MONTANA WHO SUCCESSFULLY PRESSED FOR NO MORE THAN A 43CENTSAGALLON FUELSTAX INCREASE TO SEN DAVID BOREN OF OKLAHOMA A FREQUENT RENEGADE WHO DID THE MOST TO KILL MR CLINTON'S BROAD ENERGY TAX AND NOW OPPOSES THE FINAL PACKAGE EVEN WITHOUT IT BUT THE SENATE LEADER HAS DODGED CALLS TO PUNISH THOSE WHO ARE CAUSING HIM AND THE PRESIDENT SUCH TROUBLE IN JUNE WHEN SEN BAUCUS WAS POISED TO STOP MR CLINTON'S PLAN IN THE FINANCE COMMITTEE THE MONTANAN DREW A SHARP ADMONITION FROM MR MITCHELL THAT HE WAS THREATENING THE PRESIDENCY BUT AT THE SAME TIME MR MITCHELL ENGINEERED THE DELIBERATIONS SO THAT IN THE END MR BAUCUS COULD TAKE CREDIT FOR THE COMMITTEE'S FINAL DECISION TO CUT A PROPOSED 93CENTS FUELSTAX INCREASE BY MORE THAN HALF BEFORE THAT WHEN IT WAS SEN BOREN HOLDING THE BILL HOSTAGE OVER THE BROAD ENERGY TAX MR MITCHELL ALONG WITH FINANCE CHAIRMAN DANIEL MOYNIHAN KEPT THE LINES OF COMMUNICATION OPEN TO THE CONSERVATIVE MAVERICK EVEN AS OTHER DEMOCRATIC SENATORS WERE PUBLICLY LAMBASTING HIM AS AN OILSTATE SHILL AND PRIVATELY URGING THAT HE BE YANKED FROM THE COVETED FINANCE PANEL BUT SENS MITCHELL AND MOYNIHAN ALSO LET IT BE KNOWN THEY COULD BYPASS THE PANEL AND MR BOREN THE OKLAHOMAN FINALLY VOTED FOR THE BILL IN COMMITTEE AND CRITICALLY ON THE FLOOR MR MITCHELL LIKEWISE REFUSES TO BURN HIS BRIDGES TO THE ONLY DEMOCRAT WHO HAS BECOME MORE A PARTY PARIAH THAN SEN BOREN RICHARD SHELBY AND WAS REWARDED RECENTLY WITH THE ALABAMAN'S VOTE FOR A MOTORVOTER BILL MAKING VOTER REGISTRATION EASIER ONE DAY AS THE MAJORITY LEADER LUNCHED WITH A FEW OTHER DEMOCRATS IN SENATORS' PRIVATE DINING ROOM SEN SHELBY CAME IN AND SAT AT THE FAR END OF THE LONG TABLE RICHARD COME ON DOWN AND JOIN US SEN MITCHELL SAID I WISH HE'D PUNISH PEOPLE MORE SAYS WEST VIRGINIA SEN JAY ROCKEFELLER A MITCHELL SUPPORTER BUT OF COURSE THAT WOULDN'T DO ANY GOOD SEN SHELBY WHO BACKED MR MITCHELL FOR LEADER IN 1988 AGREES THEN YOU BECOME A REPUBLICAN SEN MITCHELL TAKES PRIDE IN CONTROLLING HIS ANGER ESPECIALLY AFTER HIS OWN EXPERIENCES THREE DECADES AGO AS A TOP AIDE TO THE VOLATILE SEN EDMUND MUSKIE HIS MENTOR THERE IS NO MORE DESTRUCTIVE EMOTION THAN REVENGE AND NONE THAT PRODUCES A MORE EMPTY FEELING HE SAYS IF THE UPCOMING VOTE WAS THE VERY LAST VOTE THAT WERE TO OCCUR IN THE SENATE I MIGHT APPLY A DIFFERENT APPROACH BUT IT'S NOT GOING TO BE THE LAST VOTE SENATORS SAY MR MITCHELL'S USUAL STYLE IS TO ENTREAT THEM TO SUPPORT THE ECONOMIC PACKAGE NOT FOR THE PRESIDENT OR FOR HIM BUT FOR THE COUNTRY IT'S VERY GENUINE AND IT DOES REGISTER WITH SENATORS SAYS HIS FRIEND MARYLAND SEN PAUL SARBANES BUT SUCH PATRIOTIC APPEALS HAVE GIVEN WAY IN THESE FINAL WEEKS TO SPECIALINTEREST MINUTIAE AS MR MITCHELL BARGAINS ON BEHALF OF INDIVIDUAL SENATORS FOR PROVISIONS RANGING FROM THE BUSINESS TAX BREAKS TO A MORATORIUM ON A BOVINE GROWTH HORMONE SUCH BARTERING WAS INEVITABLE WITH THE SENATE HAVING PASSED ITS BILL ONLY WITH THE TIEBREAKING VOTE OF VICE PRESIDENT ALBERT GORE EVERY DEMOCRAT HAS A NEARVETO OVER THE FINAL VERSION YET OTHER DEMOCRATS IN THE ADMINISTRATION AND CONGRESS GRUMBLE ABOUT GIVING CONCESSIONS TO THOSE SENATORS WHO HAD SUPPORTED THE BILL BEFORE OR EVEN MORE GALLING TO SENATORS WHO STILL MAY NOT VOTE FOR IT IN THE END FOR SENS JOSEPH LIEBERMAN OF CONNECTICUT AND DIANNE FEINSTEIN OF CALIFORNIA WHOSE PAST SUPPORT WAS SHAKY SEN MITCHELL GOT A CAPITALGAINS TAX INCREASE DROPPED ADDED A CAPITALGAINS TAX CUT FOR INVESTMENTS IN CERTAIN STARTUP COMPANIES AND EXTENDED THE LIFE OF A TAX CREDIT FOR BUSINESS RESEARCH COSTS FOR SEN RUSSELL FEINGOLD OF WISCONSIN HE ADVOCATED THE MORATORIUM ON BOVINE GROWTH HORMONE TO CONVERT SEN DECONCINI WHOSE STATE IS HOME TO MANY RETIREES THE BILL NOW IS WRITTEN SO THAT FEWER UPPERINCOME SOCIAL SECURITY RECIPIENTS WOULD PAY MORE TAXES ON BENEFITS AND FOR SEN RICHARD BRYAN ANOTHER SWING VOTE WHOSE STATE OF NEVADA RELIES ON CONVENTION BUSINESS THERE'S A TAX CREDIT FOR RESTAURANTS TO HELP OFFSET THE IMPACT OF MR CLINTON'S PROPOSAL TIGHTENING BUSINESSES' DEDUCTIONS FOR MEALS AND ENTERTAINMENT THERE WAS MORE THAT SEN MITCHELL HAD DONE AND HE WOULD TELL HIS CRITICS MUCH MORE THAT HE DIDN'T THE NUMBER OF REQUESTS I MADE IN THE MEETINGS ARE A TINY REFLECTION OF THE REQUESTS MADE TO ME BY OTHER SENATORS HE SAYS AN AMBITIOUS MAN HE'D LIKE TO RUN FOR PRESIDENT HIMSELF MR MITCHELL IS NOT ALTOGETHER UNACCUSTOMED TO A SUPPORTING ROLE ALMOST 60 YEARS OLD HE'S STILL KNOWN BACK IN MAINE AS THE YOUNGER LESS TALENTED BROTHER OF BASKETBALL STARS PAUL JOHNNY AND ROBBIE MITCHELL JUST LAST MONTH IN TOGUS MAINE A WHEELCHAIRBOUND VETERAN AT A MEMORIAL CEREMONY FOR THE KOREAN WAR EAGERLY ASKED THE SENATOR IF HE IS JOHNNY SWISHER MITCHELL'S BROTHER MR MITCHELL WAS SO EXCITED THAT HE CALLED HIS BROTHER FROM THE CAR PHONE MOMENTS LATER SEE RELATED ARTICLE POLITICS & POLICY WHILE FOLEYGEPHARDT TAG TEAM' TRIES TO KEEP HOUSE MEMBERS IN LINE WSJ AUG 5 1993 9308050016 930805 TECHNOLOGY MICROSOFT CORP TO BUY HALF OF CONTINUUM BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL REDMOND WASH MICROSOFT CORP SAID IT PLANS TO BUY ABOUT HALF OF CONTINUUM PRODUCTIONS CORP A MULTIMEDIA COMPANY PRIVATELY FINANCED BY ITS CHAIRMAN WILLIAM GATES III SINCE CONTINUUM WAS FORMED IN 1989 MR GATES HAS SPENT MILLIONS OF DOLLARS OBTAINING LICENSES TO BUILD A DIGITAL ARCHIVE REPRODUCING FAMOUS ARTWORKS AND OTHER TYPES OF MEDIA THE COMPANY HAS THE RIGHTS TO SUCH ART COLLECTIONS AS LONDON'S NATIONAL GALLERY THE STATE RUSSIAN MUSEUM IN ST PETERSBURG AND THE BARNES FOUNDATION COLLECTION OF POSTIMPRESSIONIST PAINTINGS IN MERION STATION PA IT ALSO HAS PURCHASED RIGHTS TO REPRODUCE VARIOUS PHOTOGRAPHIC IMAGES VIDEO FOOTAGE AND SOUND CLIPS MICROSOFT SAID YESTERDAY THAT IT WON'T BE BUYING CONTINUUM'S DIGITAL ARCHIVE INSTEAD IT PLANS TO PURCHASE A SEPARATE AND LESSER KNOWN PART OF THE COMPANY THAT HAS BEEN WORKING ON SEVERAL PROJECTS INCLUDING DEVELOPING OPERATING SOFTWARE THAT ALLOWS COMPUTER USERS TO ACCESS THE DIGITALIZED WORKS STEPHEN ARNOLD CONTINUUM'S PRESIDENT SAID THE COMPANY HAD SOUGHT TO PUT A FRAMEWORK AROUND ITS ARCHIVAL PURCHASES BY DEVELOPING A WAY TO DELIVER THEM TO END USERS BY MEANS OF NEW SOFTWARE THAT'S WHAT WE ARE SELLING OFF TO MICROSOFT SO WE CAN NARROW OUR FOCUS BACK TO THE ORIGINAL MISSION HE SAID WHILE CONTINUUM'S ARCHIVAL EFFORTS HAVE BEEN WELL PUBLICIZED ITS WORK ON CONVERTING THE WORKS INTO SOFTWARE HAS REMAINED MOSTLY UNDER WRAPS COMPANY INSIDERS HOWEVER OFFERED THIS HYPOTHETICAL EXAMPLE OF WHAT CONTINUUM IS TRYING TO DO WHILE THE COMPANY MIGHT PURCHASE THE RIGHTS TO SAY HERMAN MELVILLE'S SOUTH SEA LITERATURE AND PAUL GAUGUIN'S SOUTH PACIFIC PAINTINGS IT ALSO MIGHT WANT TO WRAP TOGETHER THOSE CREATIONS WITH VIDEO IMAGES FROM TAHITI AND MUSIC FROM THE REGION CONTINUUM WOULD THEN FUNCTION AS A KIND OF DIGITAL STUDIO PACKAGING THE VARIOUS MEDIA INTO ONE SOFTWARE PROGRAM ABOUT HALF OF CONTINUUM'S 115 WORKERS HAVE BEEN DEVOTED TO THE TECHNICAL PROBLEM OF THIS PACKAGING OF THE COMPANY'S ARTWORKS AND OTHER MEDIA IN FORMS THAT CAN BE WIDELY USED MR ARNOLD SAID A FRENZY OF INTEREST HAS DEVELOPED AROUND THIS SOCALLED DIGITAL CONVERGENCE THERE HAVE BEEN MEDIA COMPANIES AND PUBLISHING COMPANIES WHO WANT TO GET INTO THIS BUSINESS HE SAID CONTINUUM SAID MR ARNOLD HAS DISCUSSED POTENTIAL MARKETS FOR ITS MIXEDMEDIA PRODUCT WITH A NUMBER OF POSSIBLE CUSTOMERS IN ADDITION TO MICROSOFT HE DECLINED TO NAME WHICH FIRMS HAD BEEN INVOLVED IN THE TALKS MR ARNOLD ALSO DECLINED TO DISCUSS WHETHER MR GATES'S DOMINATING PRESENCE IN BOTH COMPANIES CONSTITUTED A POTENTIAL CONFLICT OF INTEREST AND WHETHER THAT CONFLICT WOULD BE DISSIPATED BY THE SALE OF CONTINUUM'S NONARCHIVAL SEGMENT TO MICROSOFT MICROSOFT OFFICIALS HAVE SAID IN THE PAST THAT CONTINUUM'S PROJECTS DO NOT CONFLICT WITH THEIR OWN BUSINESS AND THAT MR GATES WAS DEVOTING ADEQUATE ATTENTION TO RUNNING THE LARGER CONCERN IN ITS ANNOUNCEMENT YESTERDAY MICROSOFT SAID MR ARNOLD WOULD BE MOVED TO A SENIORLEVEL POST AT MICROSOFT AFTER HE RECRUITS A SUCCESSOR TO RUN CONTINUUM 9308050015 930805 TREASURY BACKS COMPROMISE HOUSE BILL ON GOVERNMENTSECURITIES REGULATION BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE TREASURY DEPARTMENT AND KEY HOUSE MEMBERS AGREED ON COMPROMISE LEGISLATION TO OVERHAUL REGULATION OF THE HUGE GOVERNMENTSECURITIES MARKET IN THE WAKE OF THE SALOMON BROTHERS INC TREASURYBOND SCANDAL THE ACCORD GREATLY ENHANCES PROSPECTS FOR PASSAGE OF THE BILL THIS YEAR THE COMPROMISE WOULD TILT REGULATORY AUTHORITY OVER THE GOVERNMENTSECURITIES MARKET MORE TOWARD THE TREASURY THAN UNDER A GOVERNMENTSECURITIES BILL APPROVED RECENTLY BY AN ENERGY AND COMMERCE SUBCOMMITTEE HEADED BY REP EDWARD MARKEY D MASS THE TREASURY HAD OBJECTED TO THE EARLIER BILL BUT TREASURY UNDERSECRETARY FRANK NEWMAN BACKED THE COMPROMISE AS A WAY OF IMPROVING THE EFFECTIVENESS OF REGULATION AND SURVEILLANCE OF THE GOVERNMENTSECURITIES MARKET WITHOUT IMPOSING UNDUE AND BURDENSOME REGULATORY REQUIREMENTS ON A MARKET WHICH IS ESSENTIAL TO THE EFFICIENT AND COSTEFFECTIVE FINANCING OF THE US GOVERNMENT THE COMPROMISE MEASURE WOULD BEEF UP MARKET SURVEILLANCE BY REQUIRING LARGEPOSITION REPORTING NOT ONLY BY GOVERNMENTSECURITIES BROKERS AND DEALERS BUT ALSO BY THEIR CUSTOMERS SUCH AS HEDGE FUNDS MR NEWMAN SAID THE INCLUSION OF CUSTOMERS RECOGNIZES THE REALITY THAT LARGE POSITIONS IN GOVERNMENT SECURITIES ARE NOT CONFINED TO BROKERS AND DEALERS ONE KEY PROVISION WHICH WOULD HAVE AUTHORIZED THE SECURITIES AND EXCHANGE COMMISSION TO REQUIRE DEALERS TO KEEP RECORDS IN A FORM THAT COULD BE SENT ELECTRONICALLY TO THE SEC UPON REQUEST WAS ALTERED TO GIVE THE TREASURY RULEMAKING AUTHORITY IN THIS AREA BUT THE TREASURY WOULD HAVE TO RECOGNIZE THE SEC'S NEED TO HAVE EASIER ACCESS TO RECORDS IN CONDUCTING INVESTIGATIONS OR SURVEILLANCE ACTIVITIES IN ADDITION THE COMPROMISE DROPS A PROVISION THAT WOULD HAVE GIVEN THE SEC STANDBY AUTHORITY TO COMPEL BROADER DISSEMINATION OF BOND PRICE DATA IT ALSO WOULD EXTEND PERMANENTLY THE TREASURY'S LAPSED RULEMAKING AUTHORITY OVER THE MARKET UNDER THE 1986 GOVERNMENT SECURITIES ACT UNDER THE COMPROMISE THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AND BANK REGULATORS COULD FOR THE FIRST TIME IMPOSE RULES FOR SALES PRACTICES ON THE GOVERNMENT MARKET THE TREASURY DROPPED ITS DEMAND FOR VETO AUTHORITY OVER ANY SUCH RULES THE COMPROMISE MEASURE WILL BE CONSIDERED BY THE ENERGY AND COMMERCE COMMITTEE LED BY REP JOHN DINGELL D MICH AFTER CONGRESS'S AUGUST RECESS THE SENATE LAST WEEK APPROVED A NARROWER GOVERNMENTSECURITIES BILL BUT KEY SENATORS AND THEIR AIDES WERE PRIVY TO THE HOUSETREASURY NEGOTIATIONS AND ARE EXPECTED TO EMBRACE MOST IF NOT ALL ELEMENTS OF THE COMPROMISE REP MARKEY SAID THE COMPROMISE ADDRESSES PREVIOUS TREASURY CONCERNS AND ELIMINATES JURISDICTIONAL PROBLEMS WHILE KEEPING INTACT REFORMS NEEDED TO COMBAT THE THREAT OF FRAUD AND MANIPULATION IN THE MARKET THE COMPROMISE IS SUPPORTED BY THE SEC 9308050014 930805 PHILIP MORRIS RESCINDS RISE IN DISCOUNT CIGARETTE PRICE NEW YORK PHILIP MORRIS COS ADMITTING FAILURE IN ITS BID TO RAISE THE PRICES OF DISCOUNT CIGARETTES RESCINDED THE INCREASES AND CUT THE PRICE OF ITS CHEAPEST CIGARETTES TO A NEW LOWER LEVEL THE NEW PRICE CUT PROMPTED SEVERAL WALL STREET ANALYSTS TO CUT THEIR EARNINGS ESTIMATES FOR PHILIP MORRIS PHILIP MORRIS SHARES CLOSED AT 47 DOWN 50 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING SOME ANALYSTS SAID THEY WERE TOLD BY PHILIP MORRIS EXECUTIVES THAT THE LATEST PRICE CUTS WEREN'T TAKEN INTO ACCOUNT WHEN THE COMPANY ANNOUNCED ON APRIL 2 THAT IT WAS PREPARED TO FORGO UP TO 2 BILLION IN OPERATING PROFIT THIS YEAR TO REBUILD MARLBORO'S MARKET SHARE A PHILIP MORRIS SPOKESWOMAN SAID THE COMPANY'S PROJECTION OF AN EARNINGS DECLINE STILL HOLDS BUT INDICATED THAT A FURTHER DETERIORATION IN PRICES MIGHT LEAD TO A FURTHER DOWNWARD REVISION DISTRIBUTORS SAY PHILIP MORRIS CUT PRICES BECAUSE AMERICAN BRANDS INC AND RJR NABISCO HOLDINGS CORP HAD FAILED TO MATCH THE DIMEAPACK RETAIL INCREASE THAT PHILIP MORRIS HAD TRIED TO SET LATE LAST MONTH AMERICAN BRANDS DECLINED TO COMMENT RJR'S UNIT RJ REYNOLDS TOBACCO CO SAID IT WOULDN'T MATCH THE PRICE CUTS THE COMPANY SAID IT BELIEVED THIS ACTION IS IN THE BEST INTEREST OF OUR SHAREHOLDERS AND WHOLESALE AND RETAIL CUSTOMERS WHOSE PROFITABILITY HAS BEEN DAMAGED BY RECENT PRICING INITIATIVES BY PHILIP MORRIS THE PHILIP MORRIS SPOKESWOMAN COMMENTING ON RJR'S RESPONSE SAID IT'S A VERY FLUID SITUATION 9308050013 930805 OTC FOCUS STOCK GAINS PUSH NASDAQ TO RECORD CLOSE DESPITE BIG BOARD BOND MARKET DECLINE BY LARRY BAUMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK NASDAQ STOCKS MANAGED TO SEPARATE THEIR FATES FROM THOSE OF THE BIG BOARD AND THE BOND MARKET POSTING GAINS AND PUSHING THE NASDAQ COMPOSITE INDEX TO A RECORD CLOSE THE NASDAQ COMPOSITE ENDED THE DAY UP 478 POINTS OR 07 AT 71379 THE CLOSE COMPARES WITH THE RECORD OF 71249 SET JULY 14 THE NASDAQ 100 INDEX ROSE 761 AND THE NASDAQ INDUSTRIAL INDEX WAS UP 536 ADVANCING ISSUES OUTSTRIPPED DECLINERS 1408 TO 1322 VOLUME WAS 249371800 SHARES COMPARED WITH 247522200 YESTERDAY THE STRENGTH OF THE BOND MARKET HAS BEEN A DRIVING FORCE BEHIND THE RECENT SURGE IN OTC STOCKS SO TODAY'S STOCK GAINS WERE SURPRISING SAYS JACK BAYER HEAD OF OTC TRADING AT OPPENHEIMER & CO THERE'S BEEN INCREASING INTEREST IN OTC STOCKS IN RECENT WEEKS SAYS JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS' RESEARCH THE OVERALL MARKET IS DOING WELL RELATIVE TO LARGER STOCKS MR BAYER SAYS THAT WHILE THERE WAS NO GREAT THRUST OR STRENGTH BEHIND TODAY'S HIGHER OTC STOCK PRICES HE SAW INTEREST IN TECHNOLOGY STOCKS SUCH AS APPLE COMPUTER WHICH POSTED A GAIN OF 1 1/4 OR 43 AND DELL COMPUTER WHICH ROSE 1/2 OR 25 THEY WERE AMONG THE MOST ACTIVE NASDAQ STOCKS OTHER TECHNOLOGY STOCKS AMONG THE MOST ACTIVE WERE NOVELL UP 1 OR 48 AND INTEL UP 2 OR 38 ARGUS' SOLLOWAY SAYS DIFFERENT FACTORS DROVE THE OTC AND BOND MARKETS THE OTC MARKET HE SAYS IS GETTING SUPPORT FROM THE GROWING PERCEPTION THAT FOR A LOT OF COMPANIES EARNINGS HAVE COME IN AT OR ABOVE EXPECTATIONS MR SOLLOWAY SAYS THIS IS FUELING EXPECTATIONS OF AN OVERALL PICKUP IN ECONOMIC ACTIVITY WHICH HE SAYS IS ESPECIALLY HELPFUL FOR SMALLER COMPANIES THE BIG NAGGING FEAR PUTTING DOWNWARD PRESSURE ON THE BOND MARKET HE SAYS IS THE OFFCHANCE THAT CLINTON'S BUDGET PACKAGE IS NOT PASSED IT'S NOT THAT ANYONE LIKES IT BUT ITS DEFEAT IS WIDELY SEEN AS MUCH WORSE THAN ITS APPROVAL THE MARKETS CAN'T STAND UNCERTAINTY HE SAYS ADDING THAT CONGRESSIONAL REJECTION OF THE DEFICITREDUCTION PLAN WOULD EFFECTIVELY MAKE CLINTON A LAMEDUCK PRESIDENT JUST SIX MONTHS INTO HIS TERM AND THE MARKETS WILL BE DEALING WITH A COUNTRY THAT'S ADRIFT APPLE COMPUTER WHICH TUESDAY LAUNCHED ITS FIFTH ROUND OF PRICE CUTS SINCE APRIL LOWERING PRICES ON THREE OF ITS HIGHERPRICED PCS BY AS MUCH AS ONETHIRD WAS UP 1 1/4 TO CLOSE AT 30 1/4 AKZO NV POSTED A 30 DROP IN SECONDQUARTER NET INCOME FROM THE YEAREARLIER LEVEL THE COMPANY'S ADRS ENDED THE DAY 1/8 OR 03 AT 44 1/8 CHIRON CAME UNDER PRESSURE ON NEWS OF WEAK SECONDQUARTER OPERATING PROFIT THE STOCK CLOSED AT 65 DOWN 3 1/2 OR 51 QUADREX ENDED THE DAY DOWN 1 1/2 OR 24 AT 4 3/4 AFTER POSTING A SECONDQUARTER LOSS OF 59 CENTS A SHARE INCLUDING CHARGES COMPARED WITH LAST YEAR'S THREECENT NET FROM CONTINUING OPERATIONS THE COMPANY SAYS IT IS MULLING THE SALE OF ITS BIOENERGY ENVIRONMENTAL UNIT 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 9308050012 930805 VIDEO MAKER FINDS DRIVEWAYS OF STARS CAN BE PRETTY SLICK CAMERA IN HAND HE POUNDS THE ASPHALT OF HOLLYWOOD IN SEARCH OF A CABLETV HIT BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL BEVERLY HILLS CALIF AT THE FOOT OF GEORGE BURNS'S DRIVEWAY JOHN CUNNINGHAM SITS WITH CAMCORDER IN HAND WAITING FOR SOMETHING EXCITING TO HAPPEN AND THEN IT HAPPENS MR BURNS'S GARDENER AMBLES AROUND FROM THE BACK OF THE HOUSE MR CUNNINGHAM CHARGES FORWARD SHOUTING CAMERA ROLLING HE THRUSTS A MICROPHONE INTO THE GARDENER'S FACE PLEADING FOR A GEORGE BURNS TIDBIT THE GARDENER RISING TO THIS UNEXPECTED ATTENTION SPILLS THE BEANS MR BURNS GAVE HIM A BONUS LAST CHRISTMAS 100 MR CUNNINGHAM IS THRILLED IN DRIVEWAYS OF THE RICH AND FAMOUS HIS MADEFORCABLETV PROGRAM THIS IS A BIGTIME SCOOP THE 36YEAROLD MR CUNNINGHAM IS CREATOR PRODUCER DIRECTOR CAMERAMAN AND STAR OF THE PROGRAM THAT GLEEFULLY AND LITERALLY TAKES THE CELEBRITYLIFESTYLE GENRE DOWN TO THE ASPHALT RIDING HIS MOUNTAIN BIKE ALONG THE MANICURED TREELINED STREETS OF BEVERLY HILLS HE STOPS AT THE DRIVES TO STARS' HOMES HOPING TO CATCH THEM WANDERING ABOUT OCCASIONALLY HE GETS LUCKY RECENTLY JIMMY STEWART MOSEYED OUT TO SEE OFF GUESTS AND GRACIOUSLY CONFIRMED A LONGSTANDING NEIGHBORHOOD RUMOR THAT VEGETABLES WERE SPROUTING IN HIS BACKYARD THE ENCOUNTER APPEARED IN THE SHOW'S FIRST EPISODE AND HAS THE AFFABLE MR STEWART WAVING TO THE CAMERA AND SAYING YES IT'S MY WIFE'S GARDEN MORE OFTEN MR CUNNINGHAM CATCHES MAIL CARRIERS PIZZA DELIVERERS FLORISTS AND NEIGHBORS HAPPY TO PROVIDE A CELEBRITY SNIPPET OR TWO SOMETIMES WHEN FOR EXAMPLE HE RUMMAGED THROUGH KIRK DOUGLAS'S GARBAGE LOOKING FOR PROGRAM FODDER HE CATCHES FLAK THE STARS HAVE GREASE SPOTS ON THEIR DRIVEWAYS JUST LIKE YOU AND I DO SAYS MR CUNNINGHAM AN UNEMPLOYED PARALEGAL WHO CONCEIVED OF THE PROGRAM TO APPEASE HIS OWN STARSTRUCK APPETITE PEOPLE GO NUTS FOR THIS KIND OF STUFF NUTS MIGHT BE A SLIGHT OVERSTATEMENT THE SHOW'S FIRST EPISODE WAS SHOWN 58 TIMES ON 18 PUBLICACCESS CABLE CHANNELS OFTEN IN THE WEE HOURS OF THE MORNING IN ONE CASE MR CUNNINGHAM HAD TO FORK OVER 20 TO GET A BALKY CABLE OPERATOR TO SHOW IT THE FEE WAS REIMBURSED BY A FAN BUT EPISODE TWO JUST RELEASED SEEMS DESTINED TO DO BETTER A FEW OUTOFSTATE CABLE STATIONS HAVE PICKED UP THE PROGRAM AND A FRIEND HAS PROMISED TO LUG A TAPE TO JAPAN MOREOVER VIEWERS WHO BRAVE THE MIDNIGHT HOUR TO WATCH MR CUNNINGHAM'S SHOW SEEM TO LIKE IT IT'S THE FUNNIEST THING I'VE SEEN IN 77 YEARS SAYS MINETTE ALLTON WILSON A 77YEAROLD SCULPTOR AND SONGWRITER FROM SHERMAN OAKS CALIF AND EVEN IF DRIVEWAYS DOESN'T PROVE TO BE A PATH TO RICHES MR CUNNINGHAM SEEMS UNCONCERNED I'M INTO SHOW PLEASURE NOT SHOW BUSINESS HE SAYS A TALL LANKY MAN WITH UNBOUNDED ENTHUSIASM MR CUNNINGHAM MOVED TO LOS ANGELES FROM SAN DIEGO SIX YEARS AGO HIS FIRST STAR SIGHTING ACTOR NICOLAS CAGE AND HIS GIRLFRIEND SQUEEZING MELONS AT A SUPERMARKET LEFT HIM AGOG AND THINKING THERE'S GOT TO BE A WAY TO CAPITALIZE ON THIS MR CUNNINGHAM ISN'T A COMPLETE TV AMATEUR HAVING ONCE SERVED AS AN INTERN FOR A WEST HOLLYWOOD CABLE STATION SO LATE LAST YEAR HE AND A FRIEND HEADED OVER TO BARBRA STREISAND'S MANSION A BEHEMOTH SURROUNDED BY HIGH WALLS AND SURVEILLANCE CAMERAS WITH CAMCORDER READY THEY WOULD HAVE BEEN THRILLED TO GET A NEIGHBOR JOGGING BY INSTEAD THEY SEEMED TO HAVE GOTTEN MISS STREISAND HERSELF YELLING OVER THE INTERCOM GO AWAY GET AWAY FROM THE GATE THUS DRIVEWAYS OF THE RICH AND FAMOUS WAS BORN THE SHOW BENEFITS FROM THE FACT THAT MANY ORDINARY FOLK AND ESPECIALLY MOVIE STARS' NEIGHBORS SEEM TO LIKE THEIR TURN BEFORE THE CAMERA WINSTON MILLER GENE KELLY'S NEIGHBOR ON RODEO DRIVE FOR 33 YEARS WAS SUSPICIOUS WHEN HE FIRST PEERED OUT OF A WINDOW AND SAW MR CUNNINGHAM SKULKING AROUND MR KELLY'S DRIVE BUT HE QUICKLY WARMED UP WHEN HE SAW THE CAMERA MR MILLER REFUSED TO DISH ANY DIRT THERE'S NOTHING BAD TO SAY ABOUT GENE BUT DID RECOUNT THE CHRISTMAS YEARS AGO WHEN MR KELLY'S HOUSE BURNED DOWN THE INTERVIEW MADE IT INTO THE FIRST EPISODE AND MR MILLER NOW PROUDLY SHOWS THE TAPE TO DINNER GUESTS IT'S PART OF THE EVENING'S ENTERTAINMENT HE SAYS SIMILARLY MR CUNNINGHAM WAS ABLE TO COAX A PIZZADELIVERY MAN SNAGGED IN FRONT OF TV MOGUL AARON SPELLING'S MANSION INTO REVEALING THAT MR SPELLING PUT 2544 WORTH OF PIZZA ON HIS AMERICAN EXPRESS CARD MR CUNNINGHAM ON ONE RECENT DAY IS HAPPY TO DEMONSTRATE HIS METHODS HE BICYCLES OVER TO ELLA FITZGERALD'S HOUSE WHERE THE DRIVEWAY PROVES TO BE MAGNIFICENT LONG AND CURVY AND OVERFLOWING WITH CARS INCLUDING A GOLD ROLLSROYCE AN ENDLESS STREAM OF TOUR VANS WITH NAMES LIKE HOLLYWOOD FANTASY TOURS SLOW DOWN IN FRONT OF THE HOUSE BEVERLY HILLS FORBIDS THESE VEHICLES TO STOP MR CUNNINGHAM USED TO BE TERRIFIED OF BEING TOLD TO SCRAM BUT NOW TAKES IT IN STRIDE I'M NOT THAT INTRUSIVE AND MY INTENTIONS ARE GOOD HE SAYS AS AN ICEBREAKER FOR POTENTIAL INTERVIEWEES MR CUNNINGHAM CARRIES GIVEAWAY COPIES OF A PAMPHLET CALLED BESTLOVED RECIPES OF THE STARS AND THEIR NEIGHBORS HE COMPILED THE BOOKLET DURING HIS STAKEOUTS OF CELEBRITY DRIVEWAYS IT INCLUDES BETTE DAVIS'S DOORMAN'S SLOPPY JOES TODAY HOWEVER THE ICE WILL NOT BE BROKEN AFTER A LONG WAIT A FORD TRUCK PULLS OUT OF THE FITZGERALD DRIVEWAY MR CUNNINGHAM FLIPS ON HIS CAMERA AND RACES TOWARD THE DRIVER MICROPHONE OUTSTRETCHED HI EXCUSE ME I'M A BIG FAN OF ELLA CAN I ASK YOU A QUICK QUESTION HE ASKS THE DRIVER GIVES MR CUNNINGHAM THE BRUSHOFF MR CUNNINGHAM GIVES UP HIS QUEST FOR AN ELLA FITZGERALD SCOOP THERE ARE OTHER FRUSTRATIONS STARS MOVE FREQUENTLY ONCE MR CUNNINGHAM SPENT HOURS STAKING OUT STEVE MARTIN'S DRIVEWAY ONLY TO LEARN MR MARTIN HAD MOVED AWAY SIX YEARS EARLIER STARS CAN ALSO BE GRUMPY KIRK DOUGLAS CAUGHT BY MR CUNNINGHAM'S CAMERA WALKING HIS DOG ALONG HIS DRIVE BARKED YOU THINK YOU GOT ENOUGH MR DOUGLAS PROBABLY WAS ANGRY THAT MR CUNNINGHAM MINUTES BEFORE HAD BEEN SIFTING THROUGH HIS GARBAGE HE NO LONGER RAIDS GARBAGE CANS AFTER LEARNING THAT BEVERLY HILLS OUTLAWS THE PRACTICE SHELLEY WINTERS WAS OUTRAGED THAT HER ADDRESS WAS DISCLOSED IN THE SHOW'S FIRST EPISODE THOUGH MR CUNNINGHAM FOUND THE LOCATION IN A MAP OF THE STARS' HOMES COMMONLY SOLD BY KIDS ON SUNSET BOULEVARD MISS WINTERS COMPLAINED TO ONE CABLE OPERATOR WHO YANKED THE EPISODE OFF THE AIR SHE HAS A HARD OPINION OF DRIVEWAYS I SAW THE SHOW AND TURNED THE DIAL SHE SAYS NONE OF WHICH DAUNTS MR CUNNINGHAM WHO IS ALWAYS LOOKING FOR WAYS TO JAZZ UP HIS SHOW HIS LATEST EPISODE INCLUDES A SEGMENT ON CELEBRITY MAILBOXES THIS IS PRINCE'S GATE HE TEASES AT THE BEGINNING OF THE SHOW BUT DO YOU KNOW WHAT HIS MAILBOX LOOKS LIKE THE ANSWER GREEN METAL AND FAIRLY COMMON 9308050011 930805 COBRA CUTTING ITS WORK FORCE CHICAGO COBRA ELECTRONICS CORP SAID IT IS CUTTING ITS WORK FORCE ABOUT ONETHIRD OR ABOUT 75 EMPLOYEES BECAUSE OF SLUMPING SALES JERRY KALOV CHIEF EXECUTIVE OFFICER OF THE MAKER OF RADAR DETECTORS AND OTHER CONSUMER ELECTRONICS PRODUCTS SAID COBRA WILL TAKE A YETUNDISCLOSED CHARGE AGAINST SECONDQUARTER RESULTS TO BE REPORTED NEXT WEEK MR KALOV SAID THAT TO REMAIN COMPETITIVE IN THIS DIFFICULT ECONOMY WE NEED TO BETTER MATCH STAFFING LEVELS WITH SALES VOLUME 9308050010 930805 WORLD MARKETS RALLY CONTINUES IN FRANKFURT ON RATE SIGNAL BUT FIZZLES ACROSS EUROPE TOKYO STOCKS RISE A WALL STREET JOURNAL NEWS ROUNDUP FRANKFURT STOCKS EXTENDED THEIR RALLY YESTERDAY ENDING WITH BROAD GAINS EVEN AFTER DESCENDING FROM EARLY HEIGHTS SPURRED BY A GERMAN RATE REDUCTION INTERPRETED AS SIGNALING A BROADER EASING BUT THE EUROPEAN MOMENTUM THAT HAD BEEN SPARKED BY LAST WEEKEND'S LOOSENING OF THE EUROPEAN MONETARY SYSTEM MOVED INTO THE SLOW LANE MANY BOURSES LOST GROUND WHEN INVESTORS TOOK PROFITS ON THE GAINS THAT PILED UP FROM EXPECTATIONS OF WIDESPREAD INTERESTRATE CUTS THAT WOULD STIMULATE THE CONTINENT'S RECESSIONARY ECONOMIES SHARE PRICES DROPPED IN LONDON FOR THE FIRST TIME IN 10 SESSIONS AND FINISHED MIXED OR FELL IN PARIS AMSTERDAM MADRID STOCKHOLM AND ZURICH TOKYO STOCKS POSTED GAINS WEDNESDAY WITH FINANCIAL ISSUES AGAIN LEADING THE PACK AS INVESTORS SPECULATED THAT JAPAN WILL REDUCE INTEREST RATES SOON AND THE JAPANESE YEN WEAKENED WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10954 UP 021 REFLECTING INCREASES IN ASIA/PACIFIC AND EUROPEAN MARKETS AND A DROP IN THE AMERICAS SEMICONDUCTOR STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 18569 UP 380 OR 21 WITH INTEL OF THE US POSTING A 38 GAIN IN ITS LOCAL CURRENCY PRECIOUS METALS STOCKS TRAILED AT 14756 DOWN 218 OR 21 WITH ECHO BAY MINES OF CANADA SLIDING 5 IN LOCAL CURRENCY THE EARLY BULLISHNESS WAS BOOSTED WHEN THE BUNDESBANK GERMANY'S CENTRAL BANK BROKE PRECEDENT BY AGAIN REDUCING INTEREST RATES ON ITS SECURITIES REPURCHASE AGREEMENTS ADDING TO SPECULATION ABOUT A COMING REDUCTION IN ITS DISCOUNT RATE NOW 675 THE 67 TO 674 VARIABLE RATE ASSIGNED TO THE FOURWEEK REPOS WAS DOWN FROM A FIXED 68 RATE SET A DAY EARLIER THIS STARTLED ANALYSTS BECAUSE THE NEW REPO RATE IS BELOW THE DISCOUNT RATE WHICH THE BUNDESBANK CHARGES ON BUNDESBANK LOANS TO BANKS AND WHICH INFLUENCES RATES THAT BANKS THEN CHARGE THEIR CUSTOMERS THE BUNDESBANK USES THE REPO RATE TO STEER MONEYMARKET RATES BETWEEN ITS DISCOUNT AND LOMBARD RATES WHICH ACT AS THE LOWER AND UPPER GUARDRAILS FOR SHORTTERM MONEY MARKETS BUT AFTER THE US FUND MANAGER GEORGE SOROS TERMED THE GERMAN MARK OVERVALUED SOME FRANKFURT INVESTORS FEARED HE MIGHT START SPECULATING AGAINST THAT CURRENCY THIS SCENARIO YANKED STOCKS DOWN FROM THE DAY'S HIGHS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SLIPPED 37 POINTS TO 29413 THE FT 30STOCK INDEX EDGED UP 03 POINT TO 23303 VOLUME WAS 7358 MILLION SHARES COMPARED WITH 8004 MILLION SHARES A DAY EARLIER THE DROP WAS ATTRIBUTED TO LONDON INVESTORS' DISPLEASURE WITH THE SLOW PACE OF EUROPEAN INTERESTRATE CUTS SINCE THE ERM LOOSENING LONDON STOCKS STAND TO BENEFIT FROM LOWER RATES THAT WOULD LIFT THEIR MAJOR EXPORT MARKETS AND ALLOW BRITAIN TO LOWER ITS OWN RATES REDUCING BORROWING COSTS AND SPURRING CONSUMER DEMAND INVESTORS SPECULATED ABOUT WHAT THE BUNDESBANK WILL DO AT ITS NEXT MEETING AUG 26 UNTIL THEN RATE CUTS MAY BE DELAYED ACROSS EUROPE AS FRANCE IS EXPECTED TO PROTECT ITS CURRENCY BY DEFERRING ITS RATE CUTS UNTIL GERMANY LEADS THE WAY BY REDUCING A MAJOR LENDING RATE IN PARIS STOCKS REBOUNDED FROM THE DAY'S LOWS BUT STILL ENDED WEAKER AS PARTICIPANTS CONTINUED TO LIGHTEN SOME POSITIONS AFTER THE MARKET'S RECENT SHARP RUNUP IN AMSTERDAM PRICES RALLIED FOR MOST OF THE SESSION BUOYED BY A HIGHER DOLLAR AND THE UNEXPECTED GERMAN RATE EASING BUT RETREATED ON PROFITTAKING AND CLOSED MIXED IN MADRID EQUITIES EASED AS INVESTORS CONTINUED TO TAKE PROFITS FROM THE RECENT BULL RUN IN STOCKHOLM PRICES SLIPPED IN HEAVY TRADING AFTER A MORNING RALLY FIZZLED ON PROFITTAKING STEMMING FROM AN UPWARD TREND FOR SWEDISH MONEY MARKET RATES AND A WEAKER OPENING ON WALL STREET IN ZURICH SHARE PRICES ENDED MIXED AFTER A PUSH TO A 52WEEK HIGH FOR THE BLUECHIP INDEX WAS LARGELY ERASED BY STEADY PROFITTAKING AND IN BRUSSELS STOCKS FELL AS THE WEAKER DOLLAR AND HIGHER SHORTTERM BELGIAN INTEREST RATES HURT INDUSTRIAL STOCKS BUT IN MILAN SHARES ROSE ON A WAVE OF SELECTIVE BUYING ESPECIALLY CEMENT AND TELECOMMUNICATIONS ISSUES AS WELL AS CANDIDATES FOR PRIVATIZATION BEING WEIGHED BY ITALIAN OFFICIALS IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 1411 POINTS TUESDAY GAINED 13991 TO 2049755 ON THURSDAY THE NIKKEI EASED 3590 POINTS TO CLOSE THE MORNING SESSION AT 2046165 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 300 MILLION SHARES UP FROM 2692 MILLION SHARES A DAY EARLIER GAINERS OUTNUMBERED LOSERS 569397 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADDED 411 POINTS TUESDAY CLIMBED 1442 TO 167164 THE NIKKEI FAILED FOR THE SECOND CONSECUTIVE SESSION TO CLOSE ABOVE 20500 AFTER HOLDING ABOVE THE PERCEIVED PIVOTAL LEVEL MOST OF THE AFTERNOON FINANCIAL STOCKS LED THE MARKET'S GAINERS ON TALK THAT THEY WILL BENEFIT FROM A COMING WEIGHTED INDEX FOR FUTURES TRADING RUMORS ALSO CIRCULATED THAT JAPAN'S FINANCE MINISTRY ENCOURAGED DEALERS TO BUY BANKING AND BROKERAGEFIRM STOCKS TO HEAT UP THE BROADER MARKET BUT PRICES RETREATED ON LATE PROFITTAKING A LARGE PART OF THE DAY'S BUYING CAME FROM CORPORATIONS ON IMPROVED SENTIMENT LINKED TO A SIGNIFICANT EASING OF THE JAPANESE YEN AGAINST THE US DOLLAR IN CURRENCY DEALINGS RECENTLY BATTERED BLUECHIP EXPORTERS REGAINED GROUND AS THE YEN BACKED OFF STOCK MARKET ACTIVITY WAS STRONGLY INFLUENCED BY INDEX FUTURES IN SYDNEY STOCKS EDGED HIGHER TAKING THE MARKET'S MAIN INDEX ONCE AGAIN TO A NEW SIXYEAR HIGH IN SINGAPORE PRICES STRENGTHENED ON RENEWED OPTIMISM AND SHIPYARD ISSUES SURGED ON A RERATING OF THE SECTOR IN HONG KONG SHARES LOST GROUND ON PROFITTAKING LINKED TO SLOW PROGRESS REPORTED ON SINOBRITISH TALKS ABOUT THE COLONY'S NEW AIRPORT IN TAIPEI EQUITIES REBOUNDED ON BUYING BY SPECULATORS AHEAD OF THE AUG 16 NATIONAL CONGRESS OF TAIWAN'S RULING PARTY IN MANILA SHARES RETREATED ON PROFITTAKING AMONG BLUE CHIPS IN SEOUL AFTER THE PREVIOUS DAY'S GAINS BROKE A SIXSESSION LOSING STREAK SHARE PRICES ENDED LOWER DRAGGED DOWN BY ISSUES THAT HAD RISEN SHARPLY ON SPECULATIVE BUYING IN WELLINGTON STOCKS SOARED TO A THREEYEAR HIGH LED BY THE TELEPHONE SECTOR AMONG CORPORATE DEVELOPMENTS IN AMSTERDAM AKZO FINISHED AT 170 GUILDERS 8854 UP 010 GUILDER THE CHEMICAL COMPANY'S SECONDQUARTER PROFIT DROPPED 30 TO 152 MILLION GUILDERS 792 MILLION FROM A YEAR EARLIER WORSE THAN ANALYSTS HAD EXPECTED THE RESULTS INCLUDED A 28 MILLIONGUILDER SPECIAL CHARGE FOR RESTRUCTURING A UNIT YEAREARLIER RESULTS INCLUDED A ONETIME GAIN OF 12 MILLION GUILDERS AKZO ALSO FORECAST A DECLINE IN SECONDHALF EARNINGS 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 9308050008 930805 TECHNOLOGY AUTOMATIX INC PLANS TO MERGE WITH ITRAN IN SWAP OF SECURITIES BILLERICA MASS AUTOMATIX INC SAID IT SIGNED A LETTER OF INTENT TO MERGE WITH ITRAN CORP A CLOSELY HELD COMPANY IN MANCHESTER NH THE TWO COMPANIES DESIGN MANUFACTURE AND MARKET MACHINEVISION AND IMAGEANALYSIS SYSTEMS THAT HELP TO AUTOMATE INDUSTRIAL AND SCIENTIFIC APPLICATIONS BY EMULATING HUMAN SIGHT THE COMPANIES SAID THE TRANSACTION IS INTENDED TO BE COMPLETED AS A TAXFREE REORGANIZATION AND TO BE ACCOUNTED FOR AS A POOLING OF INTERESTS THE EQUITY DISTRIBUTION IN THE COMBINED COMPANY IS TO BE BASED UPON APPROXIMATELY EQUAL VALUATION OF THE TWO COMPANIES IN THE CASE OF AUTOMATIX THE VALUATION INCLUDES 32 MILLION OF SUBORDINATED NOTES DUE JUNE 30 1994 THE COMPANIES SAID THE RESULTING EQUITY OWNERSHIP OF THE COMBINED COMPANY WOULD BE ABOUT 63 FOR THE CURRENT ITRAN STOCKHOLDERS AND 37 FOR THE CURRENT AUTOMATIX STOCKHOLDERS THEY SAID TO ACHIEVE THIS DISTRIBUTION AUTOMATIX THE SURVIVING COMPANY WOULD ISSUE 11256859 COMMON SHARES FOR EACH ITRAN SHARE OR ABOUT 297 MILLION SHARES OF AUTOMATIX COMMON STOCK IN EXCHANGE FOR ALL OF ITRAN'S SHARES OUTSTANDING THE COMPANIES SAID IN ADDITION ITRAN'S EMPLOYEE STOCK OPTIONS WOULD BE EXCHANGED FOR OPTIONS ON AUTOMATIX COMMON STOCK IN THE SAME RATIO OR IN TOTAL OPTIONS ON ABOUT 32 MILLION AUTOMATIX COMMON SHARES THE COMPANIES SAID THE MERGER IS SUBJECT TO COMPLETION OF DUE DILIGENCE NEGOTIATION OF DEFINITIVE DOCUMENTS AND STOCKHOLDER APPROVAL THEY SAID THE TRANSACTION ALSO MAY INCLUDE A REVERSE STOCK SPLIT IN THE FIRST HALF AUTOMATIX HAD NET INCOME OF 117000 ON REVENUE OF 43 MILLION ITRAN HAD NET INCOME OF 277000 ON REVENUE OF 47 MILLION 9308050007 930805 INTERNATIONAL BRITISH AIRWAYS JULY TRAFFIC ROSE LONDON BRITISH AIRWAYS SAID ITS SCHEDULED PASSENGER TRAFFIC ROSE 12 IN JULY FROM A YEAR BEFORE LUCRATIVE FIRST AND BUSINESSCLASS TRAFFIC ALSO WAS ABOVE A YEAR AGO CONTINUING A TURNAROUND BEGUN IN THE SECOND TWO WEEKS OF JUNE PASSENGER TRAFFIC GROWTH WAS LED BY UK DOMESTIC AND EUROPEAN SHORTHAUL ROUTES WHERE TRAFFIC ROSE 17 INTERCONTINENTAL TRAFFIC ROSE 10 HOWEVER BRITISH AIRWAY'S PASSENGER CAPACITY ROSE 15 DEPRESSING ITS LOAD FACTOR BY 21 PERCENTAGE POINTS FROM A YEAR EARLIER TO 76 IN THE FIRST FOUR MONTHS OF THE AIRLINE'S FINANCIAL YEAR PASSENGER TRAFFIC WAS UP 92 FROM A YEAR EARLIER COMPARED WITH CAPACITY GROWTH OF 13 LOWERING THE LOAD FACTOR 25 PERCENTAGE POINTS TO 708 9308050006 930805 WHO'S NEWS BACHMAN INFORMATION SYSTEMS BACHMAN INFORMATION SYSTEMS BURLINGTON MASS PETER J BONI FORMER PRESIDENT OF PARAMOUNT COMMUNICATIONS' SOFTWARE AND INFORMATION SERVICES GROUP WAS NAMED PRESIDENT AND CHIEF EXECUTIVE MR BONI 47 SUCCEEDS ARNOLD A KRAFT 49 WHO WILL REMAIN WITH THE SOFTWARE MAKER AS A CONSULTANT MR KRAFT HAD BEEN PRESIDENT AND CEO SINCE 1988 9308050005 930805 MILGRAY'S 3RDPERIOD TURNAROUND FARMINGDALE NY MILGRAY ELECTRONICS INC POSTED A PROFIT FOR THE THIRD QUARTER ENDED JULY 4 COMPARED WITH A YEAREARLIER LOSS THE DISTRIBUTOR OF SEMICONDUCTORS AND OTHER ELECTRONIC PARTS CITED SWELLING DEMAND INCREASED MARKET SHARE AND A GROWING POOL OF CUSTOMERS AND LOCATIONS MILGRAY REPORTED NET INCOME OF 12 MILLION OR 72 CENTS A SHARE COMPARED WITH A LOSS OF 283000 OR 18 CENTS A SHARE THE YEAR BEFORE SALES ROSE 23 TO 377 MILLION 9308050004 930805 LOCKHEED CUTS PLANNED OUTPUT OF F16 FIGHTER SOME PRODUCTION SET FOR '94 IS MOVED TO LATER YEARS STOCK FALLS 6 ON NEWS BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL LOCKHEED CORP HAS REDUCED ITS PLANNED 1994 PRODUCTION OF F16 FIGHTER JETS BY ABOUT 23 PUSHING SOME OF THE WORK INTO WHAT OTHERWISE WOULD BE VERY SLACK PERIODS IN SUBSEQUENT YEARS THE NEWS SENT LOCKHEED STOCK TUMBLING 4 OR 6 TO 6250 A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE LOCKHEED BASED IN CALABASAS CALIF FACES FURTHER UNCERTAINTY ABOUT FUTURE F16 ORDERS FROM PAKISTAN AND THE US THE LOSS OF SOME EXPECTED ORDERS COULD BRING EVEN DEEPER PRODUCTION CUTS ACCORDING TO GOVERNMENT AND INDUSTRY OFFICIALS BUT MANAGERS AT LOCKHEED'S FORT WORTH TEXAS FIGHTERPLANE OPERATION WHICH WAS BOUGHT FROM GENERAL DYNAMICS CORP FOR 15 BILLION THIS YEAR PLAYED DOWN THOSE PROSPECTS THEY HAILED THE NEW PRODUCTION RESCHEDULING AS A SMOOTHING OUT THAT WOULD AVERT SERIOUS EFFICIENCY PROBLEMS AND ENSURE PROFITABILITY THE MANAGERS CONFIRMED ESTIMATES THAT LOCKHEED DISCLOSED TO STOCK ANALYSTS AT A CLOSED SESSION IN NEW YORK YESTERDAY SUGGESTING THAT PLANNED 1994 PRODUCTION HAS BEEN REDUCED TO ABOUT 150 JETS FROM 192 WITH 90 TO 100 JETS PLANNED IN 1995 AND IN 1996 BY 1997 THE COMPANY HOPES TO BE BACK TO 150 JETS AS PLANNED DELIVERIES TO MAJOR FOREIGN CUSTOMERS RESUME LOCKHEED'S F16 DELIVERY RATE WOULD DROP TO FIVE A MONTH IN MID1994 FROM 16 A MONTH THIS YEAR A MOVE THAT IS EXPECTED TO LEAD TO THE DISMISSAL OF ABOUT 5000 WORKERS THE UNIT CURRENTLY EMPLOYS 18000 PEOPLE ALL I CAN TELL YOU IS THAT A VERY POSITIVE EVENT OCCURRED SAID RT ELROD VICE PRESIDENT AND DEPUTY PROGRAM DIRECTOR FOR F16 PRODUCTION HE SAID THAT WITHOUT THE RESCHEDULING THE COMPANY WOULD HAVE FACED PERIODS IN 1995 AND 1996 WHEN IT WOULD HAVE PRODUCED ONLY ONE OR TWO JETS A MONTH ANALYSTS GENERALLY SAID THEY SUPPORTED THE COMPANY'S RESCHEDULING ALTHOUGH SOME WERE SURPRISED TO LEARN THAT THE COMPANY FACED SUCH LEAN PROSPECTS I DON'T THINK ANYBODY REALIZED WE WERE TALKING ABOUT RATES LIKE THAT SAID GARY REICH OF LEHMAN BROTHERS BUT HE ALSO SAID INVESTORS OVERREACTED IN DRIVING DOWN THE COMPANY'S STOCK SINCE LOCKHEED SAID EARNINGS WON'T BE AFFECTED IN THE NEAR TERM AND THE RESCHEDULING HELPS YEARS WHEN IT'S CONCEIVABLE THAT EARNINGS WOULD HAVE BEEN FLAT HOWEVER SOME INDUSTRY AND GOVERNMENT OFFICIALS SUGGEST THAT LOCKHEED MAY NOT BE FINISHED DEALING WITH THE SOFTNESS IN ITS ORDER BOOK THE AIR FORCE THIS YEAR DROPPED PLANS TO ORDER 24 F16S A YEAR THROUGH THE END OF THE DECADE AND CONGRESS IS DIVIDED ON WHETHER TO PROVIDE NEARLY 800 MILLION IN FUNDING FOR 24 JETS IN FISCAL 1994 AND SOME ADVANCE FUNDING FOR 1995 INCREASING PRESSURE FOR DEFENSE CUTS WORRIES SOME SUPPORTERS OF THE F16 PROGRAM WHO FEAR THAT THE 1994 ORDER COULD BE REDUCED OR CANCELED JET MAKERS WARN THAT A US DECISION NOT TO BUY THE JETS COULD WEAKEN INTEREST AMONG POTENTIAL FOREIGN CUSTOMERS THE OTHER PROBLEM INVOLVES PAKISTAN LAST MONTH AFTER A LONG STANDOFF WITH THE US OVER NUCLEAR PROLIFERATION ISSUES PAKISTAN HALTED PAYMENTS ON 24 OF THE F16S INCLUDING 13 THAT LOCKHEED SAID IT HAS ALREADY DELIVERED TO THE US GOVERNMENT WHICH HAS BEEN HOLDING THEM PENDING A RESOLUTION OF THE DISPUTE ONE OFFICIAL FAMILIAR WITH THE STANDOFF SAID THE PENTAGON IS PAYING LOCKHEED FOR THE JETS BUT THE PLANES MAY HAVE TO BE PLACED WITH OTHER FOREIGN CUSTOMERS WHICH WOULD AFFECT LOCKHEED'S FUTURE BUSINESS HE SAID THE US DEFENSE SECURITY ASSISTANCE ADMINISTRATION HAS ASSIGNED A TEAM OF NEGOTIATORS TO TRY TO RESOLVE THE DISPUTE BUT PROSPECTS ARE UNCERTAIN A LOCKHEED SPOKESMAN ACKOWLEDGED THAT CANCELLATION OF THE PAKISTANI ORDER COULD REDUCE PRODUCTION BY ONE JET A MONTH HOWEVER MR ELROD SAID THAT EVEN IF THE ORDER IS DROPPED THE US GOVERNMENT MAY BE ABLE TO PLACE THE FIGHTERS WITH CUSTOMERS THAT ARE NOT OFFICIALLY IN LOCKHEED'S FUTURE ORDER BASE LOCKHEED STILL HAS A LARGE VOLUME OF FOREIGN DELIVERIES OF JETS OR KITS TO BUILD JETS SCHEDULED FOR COMING YEARS SOUTH KOREA PLANS TO BUY 48 JETS OR KITS BEGINNING IN 1994 BEFORE IT BEGINS PRODUCING ITS OWN F16S EGYPT IS BUYING 46 KITS TO BE ASSEMBLED AT A TURKISH PLANT SINGAPORE AND THAILAND TOGETHER HAVE ORDERS FOR ABOUT 28 JETS GREECE ALSO HAS PLANS TO ACQUIRE 40 AIRCAFT AND TAIWAN CLOSED A DEAL LAST YEAR TO BUY 150 FIGHTERS THE ONLY BIG POTENTIAL SALE FOR THE F16 IN THE NEAR TERM IS IN ISRAEL WHERE LOCKHEED'S JET IS PITTED AGAINST MCDONNELL DOUGLAS CORP'S ADVANCED F/A18 STRIKEATTACK JET FOR A 60AIRCRAFT ORDER 9308050002 930805 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 DALTILE INTERNATIONAL INC 75 MILLION OF SENIOR SECURED NOTES DUE JULY 15 1998 PRICED AT 56311 TO YIELD 12 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR TWO YEARS DO NOT PAY INTEREST RATED CAA BY MOODY'S INVESTORS SERVICE INC AND TRIPLECPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO BEST POWER TECHNOLOGY INC INITIAL OFFERING OF 26 MILLION COMMON SHARES PRICED AT 1450 APIECE THROUGH UNDERWRITERS LED BY RAYMOND JAMES & ASSOCIATES BNH BANCSHARES INC 104 MILLION SHARES OFFERED AT 125 APIECE IN A RIGHTS OFFERING MOTOR COACH INDUSTRIES INTERNATIONAL INC INITIAL OFFERING OF 20 MILLION COMMON SHARES OF THIS DIAL CORP UNIT PRICED AT 13 APIECE THROUGH UNDERWRITERS LED BY SALOMON BROTHERS AND LEHMAN BROTHERS PREFERRED ENTERTAINMENT INC INITIAL OFFERING OF TWO MILLION COMMON SHARES PRICED AT 1550 APIECE THROUGH UNDERWRITERS LED BY GERARD KLAUER MATTISON & CO QUICKRESPONSE SERVICES INC INITIAL OFFERING OF 35 MILLION COMMON SHARES PRICED AT 12 APIECE THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS CHARLOTTE NC 1436 MILLION SERIES 1993C REFUNDING CERTIFICATES OF PARTICIPATION FOR THE CITY'S CONVENTION FACILITY PROJECT PRICED BY A PAINEWEBBER INC GROUP YIELDS RANGE FROM 435 IN 1998 TO 57 IN 2020 THE ISSUE IS INSURED BY AMBAC INDEMNITY CORP AND CARRIES TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY CITIBANK THE OFFERING SERIES 1583 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7625 AND WEIGHTED AVERAGE MATURITY OF 356 MONTHS CHRYSLER CORP 125 BILLION OF AUTOMOBILE ASSETBACKED CERTIFICATES PRICED IN THREE PARTS THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO ACCORDING TO MCM CORPORATEWATCH THE 2875 MILLION IN CLASS A1 MONEY MARKET NOTE CERTIFICATES WAS PRICED AS 3425S AT PAR TO YIELD 345 THE 9125 MILLION IN CLASS A2 TOTAL RATEOFRETURN NOTES WERE PRICED AS 465S AT 999902 TO YIELD 47 A 55BASISPOINT SPREAD ABOVE THE TREASURY TWOYEAR NOTE THE 50 MILLION IN CLASS B CERTIFICATES WERE PRICED AS 495S AT 99897 TO YIELD 505 A 90BASISPOINT SPREAD ABOVE THE TREASURY TWOYEAR NOTE THE FIRST TWO CLASSES WERE RATED TRIPLEA BY THE FOUR MAJOR RATING AGENCIES MOODY'S S&P DUFF & PHELPS CREDIT RATING CO AND FITCH INVESTORS SERVICE THE CLASS B CERTIFICATES ARE EXPECTED TO RECEIVE A SINGLEA RATING FROM THE FOUR AGENCIES THE COLLATERAL CONSISTING OF AUTO AND LIGHTDUTYTRUCK LOAN RECEIVABLES WAS SOLD INTO THE ASSETBACKED TRUST PREMIER AUTO TRUST 19934 BY CHRYSLER FINANCIAL CORP A UNIT OF CHRYSLER CORP CHRYSLER CREDIT CORP ANOTHER UNIT WILL SERVICE THE LOANS CITIBANK NA 74 MILLION OF CREDITCARD SECURITIES PRICED AS 55S AT 99636 TO YIELD 5601 THE ISSUE WAS PRICED AT A SPREAD OF 65 BASIS POINTS ABOVE THE US TREASURY'S 55S OF SEPTEMBER 1997 THE CERTIFICATES WERE RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P THE CERTIFICATES WITH A 407YEAR AVERAGE LIFE WERE OFFERED THROUGH UNDERWRITERS LED BY CITICORP SECURITIES MARKETS INC CITIBANK NA IS A UNIT OF CITICORP EUROPEAN INVESTMENT BANK SUPRANATIONAL 125 MILLION CANADIAN DOLLARS OF 6 EUROBONDS DUE SEPT 10 1997 AT ISSUE PRICE 100485 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD REOFFERED AT 9906 TO YIELD 6273 A MARGIN OF 38 BASIS POINTS ABOVE CANADIAN GOVERNMENT BOND DUE AUGUST 1996 FEES 1625 POINTS GENERAL ELECTRIC CAPITAL CORP US PARENT C150 MILLION OF 625 EUROBONDS DUE SEPT 2 1997 AT ISSUE PRICE 10102 VIA JP MORGAN SECURITIES LTD AND SWISS BANK CORP REOFFERED AT 9962 TO YIELD 636 A SPREAD OF 45 BASIS POINTS ABOVE CANADIAN GOVERNMENT BOND DUE AUGUST 1996 FEES 1625 POINTS HOMER FINANCE NO 2 PLC SPECIALPURPOSE VEHICLE 154 MILLION OF STEPUP MORTGAGEBACKED FLOATINGRATE EURONOTES DUE AUGUST 2030 IN TWO TRANCHES VIA SG WARBURG SECURITIES LTD AND UBS LTD SECURED ON CONVENTIONAL RESIDENTIAL MORTGAGES IN ENGLAND WALES AND SCOTLAND AND ORIGINATED BY NATIONAL HOME LOANS CORP CLASS A TRANCHE FOR 140 MILLION AT ISSUE PRICE PAR INTEREST PAYABLE QUARTERLY AT THREEMONTH LONDON INTERBANK OFFERED RATE FOR POUNDS PLUS 50 BASIS POINTS RISING TO LIBOR PLUS 100 BASIS POINTS AFTER 75 YEARS REOFFERED AT 9993 TO YIELD LIBOR PLUS 52 BASIS POINTS AVERAGE LIFE OF BONDS EXPECTED AT 46 YEARS FEES 032 POINT CLASS B TRANCHE FOR 14 MILLION AT ISSUE AND REOFFER PRICE PAR INTEREST FLOATS AT THREEMONTH POUND LIBOR PLUS 190 BASIS POINTS RISING TO LIBOR PLUS 200 BASIS POINTS AFTER FIVE YEARS AND LIBOR PLUS 225 AFTER 75 YEARS AVERAGE LIFE OF BONDS EXPECTED AT 65 YEARS FEES 15 POINTS CLASS A NOTES CALLABLE ON AUGUST 1996 INTEREST PAYMENT DATE AT PAR AND ON EACH PAYMENT DATE THEREAFTER CLASS B NOTES CALLABLE AT ANY TIME AT PAR PROVIDED THERE ARE NO CLASS A NOTES OUTSTANDING SOCIETE NATIONALE DES CHEMINS DE FER FRANCE C150 MILLION OF 625 EUROBONDS DUE SEPT 2 1997 AT ISSUE PRICE 10102 VIA JP MORGAN SECURITIES LTD REOFFERED AT 9962 TO YIELD 636 A MARGIN OF 45 BASIS POINTS ABOVE CANADIAN GOVERNMENT BOND DUE AUGUST 1996 FEES 1625 POINTS SOUTH AUSTRALIAN FINANCING AUTHORITY AUSTRALIAN AGENCY 125 MILLION AUSTRALIAN DOLLARS OF 725 EUROBONDS DUE SEPT 22 2003 AT ISSUE PRICE 1007 VIA HAMBROS BANK LTD BONDS YIELD 744 AT 987 BREAKEVEN PRICE FOR COMANAGERS GUARANTOR STATE OF SOUTH AUSTRALIA FEES 2125 POINTS LESS 0125 FOR LEAD MANAGER 9308050001 930805 LETTERS TO THE EDITOR LEGACIES OF VIOLENCE ENGENDER NIHILISM SHAWN SULLIVAN QUOTES ME IN HIS JULY 6 EDITORIAL PAGE ARTICLE WIFEBEATING N THE HOOD AS SAYING THAT VICTIM SERVICES SEES MORE POOR PEOPLE THAN MIDDLECLASS AND AFFLUENT PEOPLE FOR DOMESTIC VIOLENCE THIS IS TRUE BUT MR SULLIVAN'S IMPLICATION IS THAT THIS IS BECAUSE DOMESTIC VIOLENCE IS MORE PREVALENT AMONG THE POOR WHAT HE NEGLECTED TO MENTION WAS THAT A MAJOR REASON THAT THE MORE THAN 50000 DOMESTIC VIOLENCE VICTIMS WE HELP EACH YEAR ARE POOR IS THAT OUR SERVICES ARE FREE WE EMPHATICALLY AGREE WITH MR SULLIVAN'S BELIEF THAT MORAL LEADERSHIP FROM WITHIN IS WHAT IS NEEDED TO COMBAT AN ENVIRONMENT THAT PERPETUATES VIOLENCE AGAINST WOMEN BUT WE TAKE ISSUE WITH HIS CRITICISM OF ENLISTING GOVERNMENT OR SOCIAL SERVICE SUPPORT IN HIS CRUSADE HE CALLS FOR PARENTS TO DEMONSTRATE TO THEIR OFFSPRING ACCEPTABLE ALTERNATIVES TO PHYSICAL VIOLENCE BUT QUESTIONS OUR STANCE THAT GOVERNMENT SHOULD FUND DOMESTIC VIOLENCE PROGRAMS IN SCHOOLS HOW ARE PARENTS TO TEACH THESE ALTERNATIVES WHEN AS MR SULLIVAN POINTS OUT THEY THEMSELVES HAVE BEEN RAISED TO BELIEVE THAT VIOLENCE IS AN ACCEPTABLE WAY TO END DISPUTES FOR CHANGE TO OCCUR FROM WITHIN NEW LESSONS ON HOW TO DEAL WITH ANGER AND FRUSTRATION MUST BE LEARNED AND IN ORDER FOR THOSE LESSONS TO BE ABSORBED THEY MUST BE MODELED AND PRACTICED SCHOOL IS THE ONE INSTITUTION WHERE ALL YOUNG PEOPLE ARE GUARANTEED EXPOSURE TO NEW IDEAS IT IS ONE OF THE FEW CHANCES FOR THEM TO REAP THE BENEFITS OF A LONGTERM ANTIVIOLENCE CURRICULUM CHANGING VALUES IS A PROCESS THAT INVOLVES A SERIOUS COMMITMENT TO PUBLIC EDUCATION BEYOND BOYCOTTING RAP MUSIC IN OUR VIEW IT IS ABANDONING THAT COMMITMENT THAT WOULD BE NIHILISTIC 9308050107 930706 WIFEBEATING N THE HOOD BY SHAWN SULLIVAN ALL FIVE OF MY SISTERS HAVE BEEN VICTIMS OF WIFEBEATING I SUPPOSE ONE COULD ARGUE THAT THEY DID NOT DO A GOOD JOB AT SELECTING THEIR SPOUSES MY SISTERS LIVE IN POOR NEIGHBORHOODS THOUGH WHERE THEIR KIND OF BAD LUCK IN ROMANCE IS NOT OUT OF THE ORDINARY IN FACT DOMESTIC VIOLENCE MAY WELL PROVE TO BE THE MOST TROUBLING ISSUE FACING POOR URBAN MINORITY COMMUNITIES FOR A LONG TIME TO COME WIFEBEATING OF COURSE IS NOT CONFINED TO THE INNER CITY IT IS A NATIONAL PHENOMENON APPROXIMATELY FOUR MILLION AMERICAN WOMEN ARE BEATEN IN THEIR HOMES EACH YEAR WIFEBEATING IS THE LEADING CAUSE OF EMERGENCYROOM VISITS BY WOMEN PROMPTING THE PAST TWO SURGEONS GENERAL TO DECLARE IT A MEDICAL EPIDEMIC MANY SOCIAL WORKERS CONTEND THAT WIFEBEATING IN THE INNER CITY IS NOT DIFFERENT IN INTENSITY OR SCOPE FROM WHAT IT IS IN THE SOCIETY AT LARGE MANY OF THEM CONSIDER DOMESTIC VIOLENCE TO BE A MANIFESTATION OF MALE SEXISM AND GENDER DOMINANCE IN ALL AREAS OF AMERICAN SOCIETY MY OWN EXPERIENCES HAVE SHOWN ME THAT THE DOMESTIC VIOLENCE PROBLEM IS IN FACT FAR MORE COMPLICATED I GREW UP IN BROOKLYN'S BEDFORDSTUYVESANT SECTION ONE OF THE POOREST NEIGHBORHOODS IN NEW YORK CITY THE ATMOSPHERE IN A NEIGHBORHOOD LIKE THIS ONE FOSTERS A VERY VICIOUS FORM OF DOMESTIC VIOLENCE SPECIFICALLY I MEAN AN ATMOSPHERE IN WHICH YOUNG MEN ARE TAUGHT BY THEIR FATHERS IF THEY HAVE ONE AND OLDER BROTHERS TO REFER TO WOMEN AS HO'S WHORES WHO NEED ABUSE WHERE PHYSICAL VIOLENCE IS A COMMON MEANS OF ENDING VERBAL DISPUTES AND WHERE WOMEN ARE MISTRUSTED AND DETESTED MORAL LEADERSHIP FROM WITHIN IS WHAT IS MOST NEEDED TO COMBAT THIS ENVIRONMENT CHANGE MIGHT BEGIN THROUGH POLITICAL LEADERS BUT FAMILIES MUST PERPETUATE IT THROUGH RADICAL CHANGE IN MORAL TRAINING THIS SORT OF CHANGE DOES NOT APPEAR TO BE COMING FROM THE SOCIALWORK ESTABLISHMENT LUCY FRIEDMAN EXECUTIVE DIRECTOR OF VICTIM SERVICES IN NEW YORK CITY THE NATION'S LARGEST DOMESTICVIOLENCE AGENCY DOES NOT BELIEVE THAT IT IS USEFUL TO COMPARE THE MAGNITUDE OF THE DOMESTIC VIOLENCE PROBLEM IN DIFFERENT SPHERES OF OUR SOCIETY HOWEVER SHE ADMITS OUR AGENCY SEES MORE POOR PEOPLE THAN MIDDLECLASS AND AFFLUENT PEOPLE FOR DOMESTIC VIOLENCE BY THE SAME TOKEN SHE QUICKLY ADDS THERE IS NO RELIABLE STATISTICAL BASIS FOR ASSERTING THAT DOMESTIC VIOLENCE IS MORE COMMON IN THE INNERCITY THAN IN THE GENERAL SOCIETY THIS IS TRUE BUT STATISTICS ARE SO SPARSE THAT IT IS IMPOSSIBLE TO MAKE A DEFINITIVE CLAIM ON EITHER SIDE OF THE QUESTION THE ABSENCE OF FIRM STATISTICS HOWEVER DOES NOT DIMINISH THE UNDENIABLE REALITY THAT INNERCITY CULTURE PLACES BLACK WOMEN IN A VERY PRECARIOUS POSITION RECENTLY I VISITED A COUNSELING GROUP FOR MEN WHO HAD BEEN ARRESTED FOR WIFEBEATING JOHN APONTE THE FOUNDER OF THE ALTERNATIVE TO VIOLENCE PROGRAM AFFILIATED WITH VICTIM SERVICES WAS CONDUCTING A WORKSHOP WITH MORE THAN 50 ALLEGED WIFEBEATERS IN A MUNICIPAL COURT BUILDING IN DOWNTOWN BROOKLYN APPROXIMATELY THREEQUARTERS OF THE MEN WERE BLACK 15 HISPANIC AND 10 WHITE VIRTUALLY ALL THE MEN LIVED IN URBAN NEIGHBORHOODS MOST OF THE YOUNG BLACK BATTERERS AT THIS MEETING CHOSE TO EXPRESS THEIR IDEAS IN THE STYLE AND MANNER THAT THE INNERCITY CULTURE FOSTERS ONE BATTERER IN HIS 20S CHOSE TO DESCRIBE HIS SITUATION TO ME USING THE MISOGYNISTIC RHETORIC OF RAP MUSICIANS HE ADMITTED HITTING HIS GIRLFRIEND BUT HE ADDED SHE SIMPLY DROVE ME TO FRUSTRATION WHERE I COME FROM YOU DON'T TAKE THAT S FROM YOUR GIRL ANOTHER BATTERER EXPLAINED THAT THE WAY HE TREATED HIS GIRLFRIEND WAS NO DIFFERENT FROM THE WAY HIS FATHER TREATED HIS MOTHER HE SAW NOTHING PARTICULARLY WRONG WITH FIGHTING WITH HIS GIRLFRIEND EVERY SO OFTEN EVEN THOUGH HE IS PHYSICALLY STRONGER YO MAN I DO WHAT I CAN I HAVE THREE OR FOUR HO'S BECAUSE YOU DON'T KNOW WHAT'S GOING TO HAPPEN TOMORROW THEY CAN BE SNEAKY THIS EXTREME DISTRUST OF WOMEN AND BELIEF IN PHYSICAL VIOLENCE AS THE SOLUTION TO FAMILIAL DISPUTES IS COMMONPLACE AMONG ALL TOO MANY INNERCITY YOUNG MEN LIKE ICE CUBE IN THE POPULAR MOVIE BOYZ N THE HOOD MOST YOUNG MEN FROM THE INNER CITY COMMONLY REFER TO WOMEN AS BITCHES RAP SONGS BY MUSICIANS LIKE NIGGAZ WITH ATTITUDES AND ICE CUBE GLORIFY DATE RAPE AND SPOUSE BATTERY ICE CUBE IN PARTICULAR DEFINES THE ESSENCE OF THIS SOCIAL PHILOSOPHY IN A SONG CALLED STEADY MOBBING IN THIS SONG HE DECLARES LIFE AIN'T NOTHING BUT MONEY AND F ING YOUR BITCH ICE CUBE'S LATEST ALBUM DEBUTED AT NUMBER ONE ON BILLBOARD'S ALBUM CHARTS HIS ALBUMS AS WELL AS THOSE BY DR DRE CYPRESS HILL AND GETTO BOYS ARE BOUGHT BY MILLIONS OF YOUNG MEN ALL THESE RAP ARTISTS PAINT A PICTURE OF A WORLD IN WHICH THE ONLY IMPORTANT ASPECT OF LIFE IS THE ACCUMULATION OF MONEY AND THE SEXUAL SUBJUGATION OF WOMEN BEYOND THIS THEIR VALUE SYSTEMS DO NOT GO THESE ARE YOUNG MEN WHO THEMSELVES ARE LIKELY TO COME FROM FEMALEHEADED SINGLEPARENT HOMES MANY HAVE NEVER HAD AN OLDER MALE FIGURE IN THEIR FAMILY WHO COULD BE THERE IN TIMES OF CRISIS THEY HAVE GROWN UP IN COMMUNITIES THAT HAVE DEVALUED MANY OF THE INSTITUTIONS THAT SUSTAINED THEM IN THE PASTSCHOOLS CHURCHES AND FAMILIES MOST IMPORTANT EVERYTHING THEY SEE IN THEIR COMMUNITIES ESPECIALLY FROM THE DRUG DEALERS AND GANG MEMBERS WHO CONTROL THE STREETS POINTS TO VIOLENCE AS THE MOST SUITABLE RECOURSE FOR SOLVING THEIR PROBLEMS RECENTLY THE REV CALVIN BUTTS OF HARLEM'S ABYSSINIAN BAPTIST CHURCH PROTESTED THE ANTIWOMEN LYRICS OF MANY RAP SONGS ALTHOUGH HE ACKNOWLEDGES THAT THESE RAP ARTISTS HAVE THE RIGHT TO SING ABOUT WHATEVER THEY LIKE MR BUTTS BELIEVES THAT PRESSURE INCLUDING BOYCOTTS SHOULD BE PLACED ON RECORD COMPANIES TO RESTRICT THE PRODUCTION OF SONGS LIKE ONE LESS BITCH BY THE GROUP NWA IN WHICH THEY DESCRIBE KILLING WOMEN AFTER HAVING SEX WITH THEM I THINK THAT THERE IS A CONNECTION BETWEEN THE DOMESTICVIOLENCE PROBLEM AND RAP MUSIC SAYS MR BUTTS BECAUSE SOME SONGS GLORIFY THE HORRIBLE THINGS WHICH RAPPERS MAY HAVE EXPERIENCED PEOPLE WHO HEAR THIS MAY GET THE WRONG MESSAGE AND THINK THAT THIS BEHAVIOR IS PROPER MR BUTTS WANTS NEW LEGISLATION TO RESTRICT SALES OF SUCH SONGS REGULATION IS NOT LIKELY TO DO MUCH GOOD HOWEVER THE PROBLEM WE ARE SEEING IN THE INNER CITIES IS A DEEP CULTURAL AND PHILOSOPHICAL ONE FOR EXAMPLE WHEN I ASKED A TEENAGE GANG MEMBER WHY HE FEELS THE NEED TO BEAT UP OTHER PEOPLE HE SAID BECAUSE I CAN WHY NOT THE TRAGEDY HERE IS THAT THERE ARE FEW IF ANY PEOPLE WHO ARE THERE TO GIVE HIM A SATISFACTORY ANSWER TO HIS QUESTION UNFORTUNATELY THE CURRENT MORAL CREED SEEMS TO BE IF YOU CAN GET AWAY WITH IT DO IT REPUBLICANS HAVE ADDRESSED THIS MORAL VACUUM MOST DIRECTLY BUT RARELY DOES THEIR RHETORIC GO BEYOND DEMAGOGUERY MOST DEMOCRATS ON THE OTHER HAND SEEM TO LACK THE NERVE TO MAKE CATEGORICAL MORAL CLAIMS CORNEL WEST CHAIRMAN OF THE AFROAMERICAN STUDIES DEPARTMENT AT PRINCETON UNIVERSITY WRITES IN HIS NEW BESTSELLER RACE MATTERS IF THERE IS A HIDDEN TABOO AMONG LIBERALS IT IS TO RESIST TALKING ABOUT VALUES TOO MUCH BECAUSE IT TAKES THE FOCUS AWAY FROM STRUCTURES ESPECIALLY THE POSITIVE ROLE OF GOVERNMENT YET IF THE WAR ON POVERTY SHOWED US ANYTHING IT IS THAT MANY GOVERNMENT PROGRAMS HAVE ACTUALLY CONTRIBUTED TO INNERCITY DESOLATION MS FRIEDMAN OF VICTIM SERVICES AND HER COLLEAGUES ARE CONVINCED THAT THE GOVERNMENT MUST FUND DOMESTICVIOLENCE PROGRAMS IN ALL PUBLIC SCHOOLS IT IS THEIR BELIEF THAT THE GOVERNMENT MUST BECOME PARENT AND GUARDIAN TO ALL THOSE IN NEED OF ONE BUT SEEING THE WAY THINGS WORK IN BEDSTUY I BELIEVE THAT WHAT IS MOST NEEDED IS A CALL FOR STRONGER FAMILY VALUES AT THE CORE OF THIS PROBLEM IS THE NEED FOR PARENTS TO DEMONSTRATE TO THEIR OFFSPRING ACCEPTABLE ALTERNATIVES TO PHYSICAL VIOLENCE IT IS UP TO EACH FAMILY TO CARRY OUT THE INTERCHANGE THAT WOULD MAKE MORAL PRINCIPLES A PART OF DAILY LIVES BUT IT IS ALSO ABUNDANTLY CLEAR THAT POLITICIANS CAN NO LONGER SHIRK THEIR RESPONSIBILITY AS MORAL EXEMPLARS FOR THEIR CONSTITUENCIES NIHILISM IS THE BELIEF THAT THERE IS NO BASIS FOR TRUTH OR MORALITY IN RACE MATTERS MR WEST DEMONSTRATES HOW THIS IDEA IS RELEVANT TO THE URBAN CONDITION NIHILISM IN THE INNER CITY MR WEST WRITES BREEDS A COLDHEARTED MEANSPIRITED OUTLOOK THAT DESTROYS BOTH THE INDIVIDUAL AND OTHERS IT IS VERY CLEAR THAT THOSE WHO WILL BE DESTROYED MOST QUICKLY ARE YOUNG POOR WOMEN LIKE MY SISTERS MR SULLIVAN AN AMHERST UNDERGRADUATE IS AN INTERN AT THE WALL STREET JOURNAL THIS SUMMER SEE RELATED LETTERS LETTERS TO THE EDITOR NIHILISM OUR DEADLIEST ENEMY WSJ JULY 22 1993 SEE RELATED LETTER LETTERS TO THE EDITOR LEGACIES OF VIOLENCE ENGENDER NIHILISM WSJ AUG 5 1993 9307060154 9307220111 YY93 MM07 YY93 MM08 9308040159 930804 TECHNOLOGY & MEDICINE FCC VOTES TO ALLOW NEW RIVALS TO ENTER LOCAL PHONE BUSINESS WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION TOOK FURTHER STEPS TOWARD OPENING LOCAL TELEPHONE BUSINESS TO COMPETITION IN A 30 VOTE THE AGENCY AGREED TO ALLOW NEW PHONE COMPANY COMPETITORS TO SHUTTLE LONGDISTANCE CALLS BETWEEN LOCAL TELEPHONE COMPANY SWITCHING FACILITIES AND LONGDISTANCE CARRIERS' NETWORKS THAT MEANS SUCH COMPANIES AS MFS COMMUNICATIONS CO AND TELEPORT COMMUNICATIONS GROUP WHICH OPERATE FIBEROPTIC TELEPHONE NETWORKS IN MAJOR CITIES CAN EXPAND THEIR BUSINESS BY CARRYING LONGDISTANCE CALLS BETWEEN LOCAL PHONE COMPANIES' SWITCHING OFFICES AND LONGDISTANCE CARRIERS' NETWORKS BY DOING SO THE NEW COMPETITORS CAN HANDLE CALLS FROM SMALL AND MEDIUMSIZED BUSINESSES AS WELL AS FROM RESIDENTIAL CUSTOMERS IN THE PAST THESE COMPANIES HAVE BEEN LIMITED MAINLY TO LINKING LARGE CORPORATIONS SUCH AS FINANCIAL SERVICE COMPANIES DIRECTLY TO LONGDISTANCE NETWORKS THE VOTE EXPANDS THE COMMISSION'S LANDMARK SEPTEMBER 1992 ORDER THAT BEGAN TO OPEN THE LOCAL PHONE COMPANIES TO COMPETITION IN THE EARLIER DECISION PHONE COMPANY RIVALS WERE ALLOWED TO ATTACH THEIR EQUIPMENT AND CABLES DIRECTLY TO THE LOCAL PHONE NETWORKS THIS IS ANOTHER IMPORTANT STEP ON THE ROAD TOWARD OPENING UP LOCAL TELEPHONE COMPETITION SAID RONALD R BEAUMONT PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MFS'S MFS TELECOM INC UNIT LONGDISTANCE CARRIERS WILL BE THE PRIMARY BENEFICIARIES OF THE NEW COMPETITION IN TURN THEY WILL BE ABLE TO PASS ALONG SAVINGS TO THEIR CUSTOMERS MR BEAUMONT SAID THE FCC ALSO GRANTED LOCAL PHONE COMPANIES GREATER FLEXIBILITY TO RAISE OR LOWER PRICES TO MEET THE NEW COMPETITION DESPITE CONCERNS OF COMPETITORS SMALLER LONGDISTANCE COMPANIES AND SOME COMMISSION OFFICIALS COMMISSIONER ERVIN S DUGGAN WHO DISSENTED IN PART FROM THE COMMISSION'S DECISION SAID THE PHONE COMPANIES' ABILITY TO OFFER VOLUME AND TERM DISCOUNTS SHOULD BE TIED TO ACTUAL NOT POTENTIAL COMPETITION HE ALSO ARGUED THAT THE DISCOUNTS WILL UNFAIRLY FAVOR THE LARGEST LONGDISTANCE CARRIERS 9308040158 930804 TECHNOLOGY & MEDICINE APPLE COMPUTER CUTS ITS PC PRICES FIFTH TIME IN 1993 BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL CUPERTINO CALIF APPLE COMPUTER INC LAUNCHED ITS FIFTH ROUND OF PRICE CUTS SINCE APRIL CHOPPING SUGGESTED RETAIL PRICES ON THREE OF ITS HIGHERPRICED PERSONAL COMPUTERS AS MUCH AS ONETHIRD THE REDUCTIONS ARE PART OF A BROAD PRICECUTTING PROGRAM THE COMPANY HAS IMPLEMENTED TO BOOST US SALES APPLE HAS TRIMMED SUGGESTED RETAIL PRICES ESPECIALLY ON ITS MORE EXPENSIVE MACHINES ON A MONTHLY BASIS SINCE THE PROGRAM BEGAN IN APRIL ANALYSTS SAY THE CUTS WERE NECESSARY TO BRING APPLE'S TRADITIONAL PREMIUM PRICES INTO LINE WITH LESSEXPENSIVE INTERNATIONAL BUSINESS MACHINES CORPCOMPATIBLE PCS USING INTEL CORP COMPUTER CHIPS AND MICROSOFT CORP SOFTWARE AN APPLE SPOKESWOMAN SAID THAT THE PRICECUTTING STRATEGY HAS BEEN SUCCESSFUL ALTHOUGH SHE DECLINED TO PROVIDE SPECIFIC SALES FIGURES SINCE THE PROGRAM BEGAN UNIT SHIPMENTS OF OUR MACINTOSH PRODUCTS HAVE PICKED UP SIGNIFICANTLY SINCE WE BEGAN IMPLEMENTING OUR NEW PRICING STRATEGY ROBERT PUETTE PRESIDENT OF APPLE USA SAID IN A STATEMENT APPLE'S ACTION EFFECTIVE IMMEDIATELY INCLUDED PRICE CUTS ON ITS POWERBOOK DUO LINE THE MACINTOSH CENTRIS 650 AND THE MACINTOSH QUADRA 800 COMPUTERS THE SHARPEST CUT WAS ON APPLE'S CENTRIS 650 LINE WHICH DROPPED TO 2139 FROM 3189 THE SPOKESWOMAN SAID THAT IN ADDITION TO SPURRING SALES THE PRICE CUTS WERE DESIGNED TO OPEN A NICHE FOR NEWER MORE EXPENSIVE CENTRIS AND QUADRA MODELS FEATURING AUDIOVISUAL EXTRAS THAT WERE INTRODUCED MONDAY BY APPLE THE COMPANY HAD ALREADY CUT ITS PRICE FOR THE SLOWSELLING POWERBOOK DUO MACHINE ONCE IN APRIL ANALYSTS SAID THEY EXPECTED THE COMPANY'S LATEST ROUND OF PRICECUTTING THIS ISN'T ANY SURPRISE SAID WENDY ABRAMOWITZ OF ARGUS RESEARCH CORP ADDING THAT SHE EXPECTS SOME ADDITIONAL PRICECUTTING BY APPLE OBVIOUSLY THEY'RE CUTTING PRICES BECAUSE THEIR PRODUCTS AREN'T SELLING WELL SHE SAID LAST MONTH APPLE REPORTED A LOSS OF 1883 MILLION OR 163 A SHARE FOR ITS THIRD QUARTER ENDED JUNE 25 THE LOSS WAS UNEXPECTEDLY LARGE COMPARED WITH NET INCOME OF 1317 MILLION OR 107 A SHARE THE YEAR EARLIER SALES ROSE 7 TO 186 BILLION YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING APPLE'S SHARES CLOSED AT 29 UP 50 CENTS ON VOLUME OF 16 MILLION SHARES DOWN SHARPLY FROM AVERAGE DAILY VOLUME OF 25 MILLION SHARES 9308040157 930804 PENSKE UNIT TO PAY DEBT TO GM USING PROCEEDS FROM OFFER DETROIT DETROIT DIESEL CORP WHICH HAS PULLED OFF A TURNAROUND IN THE PAST FIVE YEARS PLANS TO RAISE UP TO 98 MILLION THROUGH AN INITIAL PUBLIC STOCK OFFERING ABOUT HALF THE MONEY RAISED SOME 465 MILLION WOULD BE USED TO PAY DOWN A LOAN TO DETROIT DIESEL FROM GENERAL MOTORS CORP GM OWNED DETROIT DIESEL UNTIL 1988 WHEN IT SOLD A CONTROLLING INTEREST TO ENTREPRENEUR ROGER PENSKE AN ADDITIONAL 28 MILLION IN PROCEEDS FROM THE PROPOSED STOCK SALE WOULD BE PAID TO MR PENSKE'S COMPANY PENSKE CORP DETROIT DIESEL WHICH MANUFACTURES HEAVY TRUCK ENGINES WAS VIRTUALLY BROUGHT BACK FROM THE DEAD BY MR PENSKE WHO ALSO OWNS SEVERAL LARGE CAR DEALERSHIPS AND OPERATES A CAR RACING TEAM ITS SHARE OF THE MARKET ZOOMED TO 26 IN 1992 FROM 4 IN 1988 LARGELY BECAUSE DETROIT DIESEL WAS THE FIRST TRUCK ENGINE MAKER TO OFFER A SOPHISTICATED ELECTRONIC FUEL CONTROL SYSTEM SIMILAR TO THE ONES IN USE ON CARS THEY'VE DONE A MARVELOUS JOB AT REESTABLISHING THAT COMPANY IN THE MARKETPLACE SAID ANALYST ELI LUSTGARTEN OF PAINEWEBBER INC DETROIT DIESEL WHICH POSTED 81 MILLION IN LOSSES IN 1990 AND 1991 RECORDED A 105 MILLION PROFIT IN 1992 ON REVENUE OF 137 BILLION ACCORDING TO FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE FIRST SIX MONTHS OF THIS YEAR IT EARNED 89 MILLION ON REVENUE OF 7728 MILLION COMPARED WITH A 55 MILLION PROFIT ON REVENUE OF 6636 MILLION IN THE YEARAGO PERIOD DESPITE THE COMPANY'S IMPRESSIVE GAINS IN MARKET SHARE IT HAS POSTED RELATIVELY SMALL PROFIT FOR A COMPANY ITS SIZE NOTED ANALYST KAREN UBELHART OF LEHMAN BROS INC BECAUSE OF THAT MS UBELHART CONSIDERS THE PROPOSED STOCK OFFERING A LITTLE PRICEY BUT SHE STILL EXPECTS STRONG INTEREST FROM WALL STREET BECAUSE OF DETROIT DIESEL'S COMPELLING COMEBACK STORY DETROIT DIESEL DECLINED ANY COMMENT YESTERDAY ON THE STOCK OFFERING WHICH WILL BE UNDERWRITTEN BY MERRILL LYNCH & CO SALOMON BROS INC AND WERTHEIM SCHRODER & CO CURRENTLY PENSKE CORP OWNS 80 OF DETROIT DIESEL WHILE GM HOLDS THE REMAINING 20 UNDER THE PROPOSED STOCK OFFERING PENSKE'S SHARE WOULD DROP TO NO LESS THAN 58 WHILE GM WOULD OWN AT LEAST 15 9308040156 930804 WHO'S NEWS SOMANETICS CORP SOMANETICS CORP TROY MICH ASTRONAUT JAMES P BAGIAN 41 YEARS OLD WAS NAMED VICE PRESIDENT OF CORPORATE DEVELOPMENT AND MEDICAL AFFAIRS OF THIS MAKER OF MEDICAL DIAGNOSTIC AND MONITORING EQUIPMENT THE POST IS NEWLY CREATED 9308040155 930804 CREDIT MARKETS TREASURY BOND PRICES RISE SHARPLY ON OPTIMISM THAT CLINTON'S BUDGET PLAN WILL WIN APPROVAL BY THOMAS D LAURICELLA STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TREASURY BOND PRICES ROSE SHARPLY YESTERDAY AS INVESTORS REACTED TO GROWING EXPECTATIONS THAT PRESIDENT CLINTON'S BUDGET PLAN WILL BE APPROVED THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 1/2 POINT OR MORE THAN 5 FOR A BOND WITH A 1000 FACE VALUE TO 107 29/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE DROPPED TO 651 FROM 655 THE LOWEST SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE 30YEAR BOND IN 1977 A NUMBER OF FACTORS COMBINED TO PUSH PRICES HIGHER YESTERDAY BUT MUCH OF THE FOCUS REMAINED ON EVENTS IN WASHINGTON AS MR CLINTON'S BUDGET PLAN CONTINUED TO WORK ITS WAY THROUGH CONGRESS DEALERS REPORTED BUYING BEGINNING IN OVERSEAS TRADING ON NEWS THAT HOUSE AND SENATE CONFEREES HAD REACHED AGREEMENT ON A COMPROMISE BILL MONDAY BUT LATER IN THE SESSION SOME OF THAT OPTIMISM WAS TEMPERED AS TALK TURNED TO THE POSSIBILITY THAT THE WHITE HOUSE STILL MIGHT NOT HAVE THE VOTES IN THE SENATE TO PASS THE BUDGET YOU HAD EUPHORIA IN THE EARLY PART OF THE DAY ON THE IDEA THAT YOU ARE GOING TO SEE THE BUDGET PASS BUT A LITTLE BIT OF REALITY SET IN AND THE MARKET BACKED OFF SAID ANDREW BRENNER A TRADER AT NOMURA SECURITIES INTERNATIONAL INC BEFORE THE MORNING SPURT OF BUYING TAPERED OFF INVESTORS ALSO FOUND COMFORT IN AN ECONOMIC REPORT THAT WAS SLIGHTLY WEAKER THAN EXPECTED THE COMMERCE DEPARTMENT REPORTED THE INDEX OF LEADING INDICATORS ROSE JUST 01 DURING JUNE BELOW FORECASTS FOR AN INCREASE OF 02 OR 03 THE INDEX IS MEANT TO GAUGE THE HEALTH OF THE ECONOMY SEVERAL MONTHS DOWN THE ROAD MEANWHILE MUNICIPAL ISSUERS SOLD MORE THAN 3 BILLION OF NEW BONDS YESTERDAY IN A RUSH TO TAKE ADVANTAGE OF LOW INTEREST RATES TWO OF THE BIGGEST ISSUES CAME FROM PHILADELPHIA WHICH SOLD 12 BILLION OF REVENUE BONDS AND NEW YORK CITY WHICH SOLD 11 BILLION OF REVENUE ANTICIPATION NOTES WHILE THE LEADING INDICATORS REPORT IS RARELY A MAJOR EVENT FOR THE BOND MARKETS IT GARNERED A BIT MORE ATTENTION THAN USUAL YESTERDAY THE MAIN POINT OF THE REPORT IS THAT THE ECONOMY CONTINUES TO STRUGGLE AND THAT GOT SOME CASH OFF THE SIDELINES AS MORE INVESTORS MOVED BACK INTO THE TREASURY MARKET SAID WILLIAM V SULLIVAN JR DIRECTOR OF FINANCIAL MARKETS RESEARCH AT DEAN WITTER REYNOLDS INC TRADERS REPORTED CONTINUED SOLID BUYING INTEREST IN TREASURY ZEROCOUPON BONDS WHICH ARE SOLD AT A DEEP DISCOUNT TO FACE VALUE PAY NO INTEREST AND ARE REDEEMED AT PAR INTEREST IN ZEROCOUPON TREASURY BONDS HAS SURGED IN THE WAKE OF A REPORT FROM MERRILL LYNCH & CO LAST FRIDAY WHICH PREDICTED A SIGNIFICANT NARROWING OF THE GAP BETWEEN LONGTERM AND SHORTTERM INTEREST RATES CURRENTLY THE YIELD GAP BETWEEN TWOYEAR TREASURY NOTES AND 30YEAR TREASURY BONDS STANDS AT 237 PERCENTAGE POINTS AND THE MERRILL ANALYSTS ARGUED IT COULD FALL TO JUST ONE PERCENTAGE POINT ANOTHER KEY YIELD GAP IS THE DIFFERENCE BETWEEN 10YEAR NOTES AND 30YEAR BONDS WHICH MERRILL STRATEGISTS SAID COULD FALL TO ZERO FROM ITS CURRENT LOFTY LEVEL OF 077 PERCENTAGE POINT INVESTORS SEEKING TO PROFIT FROM A NARROWING YIELD GAP OR FLATTENING YIELD CURVE HAVE BEEN LOADING UP ON 30YEAR BONDS ESPECIALLY ZEROCOUPON BONDS WHILE SELLING OTHER SHORTERTERM ISSUES TRADERS SAID BUYERS HAVE BEEN LURED INTO ZEROS BY THE FACT THAT ZEROCOUPON BONDS TRADE AT A DISCOUNT TO REGULAR BONDS IN ADDITION SHOULD LONGTERM YIELDS FALL FURTHER THE ROOM FOR PROFIT IS GREATER ON ZEROCOUPON BONDS IF YOU ARE ANTICIPATING A CURVE FLATTENING YOU'D WANT ZEROS AT THE BACK END AS YOUR ULTIMATE WEAPON SAID GLENN MURPHY CHIEF INVESTMENT OFFICER AT TRAVELERS ASSET MANAGEMENT CORP ZEROS GIVE YOU THE MAXIMUM BANG FOR YOUR BUCK WHILE EXPECTATIONS FOR A FLATTER YIELD CURVE SUPPORTED THE LONG END OF THE MARKET SHORTER ISSUES WERE PROPPED UP BY A RENEWED ROUND OF BUYING RELATED TO MUNICIPAL DEFEASANCE THE 10YEAR TREASURY NOTE ROSE 3/8 POINT OR 375 FOR A BOND WITH A 1000 FACE VALUE TO 103 11/32 FOR A YIELD OF 578 DOWN FROM 583 ON MONDAY IN A DEFEASANCE PROGRAM A STATE OR LOCAL GOVERNMENT TAKES ADVANTAGE OF LOW INTEREST RATES BY REFUNDING OLDER HIGHINTEREST DEBT BUT UNTIL THE OUTSTANDING DEBT CAN BE CALLED THE CASH RAISED BY THE NEW ISSUES IS INVESTED IN TREASURYS AND HELD IN ESCROW THERE WAS SOME SELLING AS YOU APPROACHED THE HIGHS FROM MONEY MANAGERS AND A LITTLE BIT FROM PENSION FUNDS SAID MR BRENNER OF NOMURA SOME CAUTION ON THE PART OF INVESTORS WAS ONLY TO BE EXPECTED MARKET WATCHERS SAID THE BUDGET PLAN WHILE MOVING AHEAD STILL IS NOT A SURE THING THEY ARGUED IN ADDITION TREASURYS STILL MUST WEATHER FRIDAY'S KEY JULY EMPLOYMENT REPORT AND THE THREEPART MULTIBILLIONDOLLAR QUARTERLY REFUNDING AUCTION BY THE TREASURY NEXT WEEK TRADERS WILL FIND OUT EXACTLY HOW MUCH SUPPLY THEY WILL HAVE TO CONTEND WITH NEXT WEEK WHEN THE TREASURY ANNOUNCES THE SIZE OF THE THREE AUCTIONS THIS AFTERNOON MOST ANALYSTS BELIEVE TREASURY WILL SELL 11 BILLION OF 30YEAR BONDS 1075 BILLION OF 10YEAR NOTES AND 165 BILLION OF THREEYEAR NOTES THE TOTAL PACKAGE OF 3825 BILLION WOULD MARK A SIGNIFICANT INCREASE FROM THE 35 BILLION REFUNDING OFFERED IN THE MAY REFUNDING BUT MUCH OF THE INCREASE IS EXPECTED TO BE IN THE 30YEAR BOND AUCTION WHICH TOTALED 825 BILLION THE LAST TIME AROUND AS PART OF THE TREASURY'S DECISION TO MOVE TO SEMIANNUAL AUCTIONS OF THE 30YEAR BOND FROM QUARTERLY AUCTIONS THE DEPARTMENT INDICATED IT WOULD BOOST THE SIZE OF THE INDIVIDUAL BOND OFFERINGS TO ABOUT 11 BILLION PRICES OF MUNICIPAL BONDS ROSE 1/4 TO 1/2 POINT YESTERDAY IN TANDEM WITH THE US TREASURY MARKET THANKS TO THE MARKET'S STRONG TONE PRICES HELD UP WELL AS MORE THAN 3 BILLION OF SECURITIES WERE PRICED THE LARGEST ISSUE WAS PHILADELPHIA'S 12 BILLION WATER AND WASTEWATER REVENUE BOND OFFERING WHICH WAS BROUGHT TO THE MARKET BY A GROUP OF UNDERWRITERS LED BY SMITH BARNEY SHEARSON THE ISSUE INCLUDES NEARLY 11 BILLION OF FIXEDRATE CURRENTINTEREST BONDS THERE ARE ALSO 72 MILLION OF FLOATERS AND INVERSE FLOATERS WITH FINAL MATURITIES IN 2004 AND 2012 IN THE COMPETITIVE PRICING SECTOR NEW YORK CITY'S 11 BILLION OF VARIOUS REVENUE ANTICIPATION NOTES WERE WON BY NUMEROUS FIRMS REVENUE ANTICIPATION NOTES ARE ISSUED IN ANTICIPATION OF SOURCES OF FUTURE REVENUE OTHER THAN TAXES THE OFFERING INCLUDED 400 MILLION OF SERIES A NOTES WHICH MATURE ON APRIL 15 1994 AND 700 MILLION OF SERIES B NOTES WHICH MATURE ON JUNE 30 1994 MOODY'S INVESTORS SERVICE INC HAS RATED THE NOTES MIG1 AND STANDARD & POOR'S CORP HAS ASSIGNED AN SP1 RATING THE 400 MILLION SERIES A PORTION OF THE OFFERING WAS WON BY LEAD UNDERWRITERS FIRST BOSTON CORP GOLDMAN SACHS & CO BT SECURITIES CORP JP MORGAN SECURITIES INC AND BEAR STEARNS & CO THE 700 MILLION SERIES B PORTION WAS WON BY LEAD UNDERWRITERS GOLDMAN SACHS CITICORP SECURITIES MARKETS INC AND FIRST ALBANY CORP THE SERIES A NOTES WERE GIVEN COUPONS OF 325 OR 350 AND PRICED TO YIELD 275 WHILE THE SERIES B NOTES WERE GIVEN 350 COUPONS AND PRICED TO YIELD 290 THE CORPORATE BOND MARKET HAD ANOTHER IN A STRING OF QUIET DAYS WITH ONLY LIMITED SECONDARY TRADING AND 670 MILLION OF DEBT PRICED COMPANIES THAT PRICED DEBT YESTERDAY INCLUDED FINANCIALSERVICES CONCERN NORWEST FINANCIAL INC AND ARIZONA PUBLIC SERVICE CO A UTILITY SECONDARY TRADING IN THE INVESTMENTGRADE AND HIGHYIELD MARKETS WAS QUIET PRICES IN THE INVESTMENTGRADE MARKET FOLLOWED TREASURYS HIGHER WITH NO CHANGES IN SPREADS TRADERS SAID THE FOCUS IN THE HIGHYIELD MARKET WAS ON COMING NEW ISSUES KEEPING ACTIVITY IN SECONDARY TRADING TO A MINIMUM NORWEST FINANCIAL A UNIT OF NORWEST CORP PRICED 150 MILLION OF 10YEAR NOTES AT 99226 TO YIELD 623 THE NONCALLABLE NOTES WERE PRICED 043 PERCENTAGE POINT ABOVE TREASURYS RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH A 100 MILLION ISSUE OF ARIZONA PUBLIC SERVICE 30YEAR FIRST MORTGAGE BONDS WAS PRICED AT 98199 TO YIELD 74 THE BONDS NOT CALLABLE FOR 10 YEARS WERE PRICED 087 PERCENTAGE POINT ABOVE COMPARABLE TREASURYS RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP ARIZONA PUBLIC SERVICE IS A UNIT OF PINNACLE WEST CAPITAL CORP PRICES OF MORTGAGE SECURITIES ENDED LITTLE CHANGED IN THIN TRADING THE PRIMARY MARKET SAW ONLY SLIGHTLY MORE ACTIVITY THAN THE SECONDARY ARENA WITH ONE SMALL NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEAL ANNOUNCED AND TWO OUTSTANDING OFFERINGS INCREASED THE FEDERAL NATIONAL MORTGAGE ASSOCIATION ANNOUNCED A 150 MILLION REMIC 1993G30 BACKED BY STRIPS TRUST 241 THAT IS IN TURN COLLATERALIZED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 85 SECURITIES ALSO FANNIE MAE REMIC 1993163 WAS DOUBLED TO 1 BILLION AND THE AGENCY'S 1993161 DEAL WAS BOOSTED TO 200 MILLION FROM 150 MILLION ISSUANCE IN THE ASSETBACKED SECTOR HOWEVER IS ABOUT TO PICK UP CHRYSLER CORP IS EXPECTED TO OFFER ABOUT 1 BILLION OF NEW AUTO LOANBACKED SECURITIES THROUGH BEAR STEARNS & CO THE PRICING IS ANTICIPATED FOR TODAY ACCORDING TO SYNDICATE OFFICIALS IN SECONDARY TRADING 65 SECURITIES FOR AUGUST DELIVERY ISSUED BY THE THREE AGENCIES FINISHED UNCHANGED TO UP LESS THAN 1/8 POINT GINNIE MAE ISSUES ENDED 3/32 HIGHER AT 99 13/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES ENDED UNCHANGED AT 99 13/32 AND FANNIE MAE ISSUES ENDED FLAT AT 99 9/32 CANDACE CUMBERBATCH CONTRIBUTED TO THIS ARTICLE 9308040154 930804 WHO'S NEWS CALIFORNIA MICROWAVE INC CALIFORNIA MICROWAVE INC SUNNYVALE CALIF FORMER MARINE CORPS COMMANDANT GEN ALFRED GRAY 65 YEARS OLD WAS NAMED TO THE BOARD OF THIS WIRELESS COMMUNICATIONS CONCERN INCREASING THE NUMBER OF DIRECTORS TO 10 9308040153 930804 INTERNATIONAL NATWEST EARNINGS EXCEEDED ESTIMATES FOR FIRST HALF 1993 LONDON NATIONAL WESTMINSTER BANK PLC ANNOUNCED BETTER THAN EXPECTED EARNINGS THANKS TO LOWER PROVISIONS FOR LOAN LOSSES AND HEALTHY PROFITS FROM TRADING AND INVESTMENT BANKING BRITAIN'S SECOND LARGEST COMMERCIAL BANK REPORTED FIRST HALF 1993 GROUP EARNINGS OF 421 MILLION 6319 MILLION NEARLY DOUBLE THE YEARAGO FIGURE OF 211 MILLION NATWEST ALSO SAID IT WOULD RAISE ITS INTERIM DIVIDEND BY 45 TO 64 PENCE A SHARE NATWEST SHARES ROSE BY 13 PENCE ON THE LONDON STOCK EXCHANGE TO 510 PENCE IN LATE TRADING DESPITE THE IMPROVEMENT NATWEST IS STILL SOME WAY FROM ITS LONGTERM TARGET OF PRODUCING AN 18 NET RETURN ON SHAREHOLDERS' EQUITY FIRST HALF 1993 NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS ROSE 63 TO 200 MILLION OR 12 PENCE A SHARE EQUIVALENT TO A 76 RETURN ON AVERAGE EQUITY NET INCOME WAS REDUCED BY A RELATIVELY HIGH TAX CHARGE REFLECTING THE NONDEDUCTIBILITY OF EXPENSES INCURRED IN THE CLOSURE OF A RETAIL BANKING OPERATION IN FRANCE FOR THE FIRST HALF OF 1992 USING RESTATED FIGURES IN LINE WITH NEW ACCOUNTING REQUIREMENTS SET BY A EUROPEAN COMMUNITY DIRECTIVE NATWEST REPORTED NET PROFIT PER SHARE OF EIGHT PENCE EQUIVALENT TO A 46 RETURN ON EQUITY LOAN LOSS PROVISIONS FELL TO 641 MILLION FROM 828 MILLION IN THE FIRST HALF OF 1992 DESPITE OPTIMISTIC ECONOMIC INDICATORS CHAIRMAN LORD ALEXANDER WARNED THAT THE UK RECOVERY REMAINED FRAGILE AND THE OUTLOOK FOR FURTHER REDUCTIONS IN PROVISIONS UNCERTAIN LOOKING AHEAD NATWEST EXECUTIVES SAID THEY EXPECTED COMPETITION FOR LOAN BUSINESS TO REMAIN TOUGH WITH PRESSURE ON MARGINS LIKELY TO CONTINUE HOWEVER THEY ALSO SAID THE BANK WOULD CONTINUE TO REDUCE COSTS WHEREVER POSSIBLE BOTH THROUGH AUTOMATION AND THROUGH A REDUCTION IN ITS WORK FORCE 9308040152 930804 ECONOMY BUSINESS FAILURES IN US FELL 99 IN THE FIRST HALF BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BUSINESS FAILURES IN THE US FELL 99 IN THE YEAR'S FIRST HALF REFLECTING WIDESPREAD RECOVERY FOR US BUSINESSES DUN & BRADSTREET CORP SAID D&B SAID 45749 BUSINESSES FAILED IN THE FIRST SIX MONTHS OF 1993 COMPARED WITH 50793 FAILURES IN THE YEAREARLIER PERIOD THE INFORMATION SERVICES CONCERN SAID FAILURES HAVE DECLINED FOR THREE CONSECUTIVE QUARTERS FOR ALL OF 1992 D&B REPORTED A RECORD 96836 FAILURES THE CURRENT PATTERN OF BUSINESS FAILURES REFLECTS THE FUNDAMENTAL STRENGTH OF THE US ECONOMY SAID JOSEPH W DUNCAN VICE PRESIDENT AND CORPORATE ECONOMIST THE ECONOMIC RECOVERY HAS TAKEN HOLD AND THE BUSINESS SECTOR IS MAKING A SLOW STEADY COMEBACK THE REPORT SAID LIABILITIES ASSOCIATED WITH BUSINESS FAILURES ALSO DECLINED SHARPLY FALLING 533 TO 25 BILLION IN THE FIRST HALF FROM 54 BILLION A YEAR AGO WHILE FEWER FIRMS ARE FAILING PROPORTIONALLY EVEN FEWER LARGE BUSINESSES ARE CLOSING WITH LOSSES TO CREDITORS SAID MR DUNCAN CLEARLY THE HIGH INCIDENCE OF FAILURES AMONG LARGER FIRMS SEEN DURING THE PAST THREE YEARS IS COMING TO AN END THE BROAD COMEBACK HOWEVER HAS YET TO TAKE HOLD IN CERTAIN AREAS ESPECIALLY IN CALIFORNIA HAWAII AND CONNECTICUT D&B SAID THE STATE WITH LARGEST INCREASE IN FAILURES HAWAII HAD A 48 RISE WITH 163 BUSINESSES FAILING IN THE LATEST HALF COMPARED WITH 110 FAILURES A YEAR AGO IN THE FIRST SIX MONTHS OF THE YEAR ALL MAJOR INDUSTRY GROUPS HAD A DECLINE IN BUSINESS FAILURES FAILURES IN THE FINANCE INSURANCE AND REALESTATE GROUP SHOWED THE LARGEST DECLINE DECREASING 178 TO 2697 FROM 3280 SERVICES FIRMS TEND TO BE NEWER AND SMALLER THAN THE GENERAL BUSINESS POPULATION AND HAVE FEWER RESOURCES AT THEIR DISPOSAL TO SURVIVE AN ECONOMIC SLUMP SAID MR DUNCAN AS A RESULT THE SERVICES SECTOR REFLECTS MUCH OF THE VOLATILITY BOTH UPSWINGS AND DOWNTURNS WITHIN A PARTICULAR REGION FAILURES ALSO DECLINED IN EIGHT OF THE NINE CENSUS REGIONS WITH CALIFORNIA'S TROUBLES ADVERSELY AFFECTING THE PACIFIC REGION D&B SAID AMONG PACIFIC STATES FAILURES INCREASED 19 TO 12064 FROM 11836 CALIFORNIA FAILURES INCREASED 3 TO 10370 FROM 10066 D&B HOWEVER SAID THE STATE IS BEGINNING TO SHOW SIGNS OF STABILIZATION STATES IN THE WEST NORTH CENTRAL REGION SHOWED THE STEEPEST DECLINE AS BUSINESS FAILURES DROPPED 277 TO 2462 FROM 3406 IN THE FIRST HALF OF 1992 MINNESOTA PACED THE WEST NORTH CENTRAL REGION SHOWING A 378 DECLINE IN BUSINESS FAILURES D&B SAID THE EFFECTS OF THE MIDWESTERN FLOODING WILL LIKELY TAKE SEVERAL MONTHS TO SHOW UP IN ITS BUSINESS FAILURE STATISTICS 9308040151 930804 COSTCO WAREHOUSE SALES INCREASE KIRKLAND WASH COSTCO WHOLESALE CORP SAID SALES FOR ITS WAREHOUSE STORES OPEN AT LEAST ONE YEAR ROSE 3 DURING THE FOUR WEEKS ENDED AUG 1 OVERALL WAREHOUSE STORE SALES ROSE 13 DURING THE PERIOD TO 583 MILLION FROM 515 MILLION 9308040150 930804 ECONOMY US FIRMS TURN TO THE DEVELOPING WORLD HUGE MARKETS FOR INVESTMENT AND EXPORTS ARE SEEN BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL AFTER JUST TWO WEEKS IN CHINA LAST YEAR A DIEBOLD CORP SALESMAN RETURNED WITH ORDERS FOR 93000 BANK SAFETYDEPOSIT BOXES AT ABOUT 1000 APIECE MORE THAN THE COMPANY COULD CHURN OUT IN A YEAR IT WAS A HAPPY PROBLEM FOR THE BANKINGEQUIPMENT MAKER WHICH EXPANDED ITS OHIO FACTORY IN MAY DIEBOLD WENT BEYOND EXPORTS IN ITS QUEST TO CASH IN ON THE BANKING BOOM TAKING PLACE AS CHINESE CITIZENS MOVE SAVINGS FROM UNDER THEIR MATTRESSES INTO BANK ACCOUNTS IT JOINED WITH CHINESE PARTNERS TO MAKE AUTOMATED TELLER MACHINES IN A NEW SHANGHAI FACTORY HOW MUCH WILL THIS VAST MARKET MEAN FOR DIEBOLD'S SALES WHICH WERE 543 MILLION IN 1992 I HATE TO EVEN CONTEMPLATE IT IN STRATEGY MEETINGS IT GETS ME SO EXCITED SAYS CHAIRMAN ROBERT W MAHONEY IT'S A STAGGERING FIGURE WITH THE ECONOMIES OF THE US EUROPE AND JAPAN SPUTTERING SAVVY AMERICAN COMPANIES ARE SCRAMBLING FOR A BETTER FOOTING IN THE DEVELOPING AND NEWLY INDUSTRIALIZED COUNTRIES OF ASIA AND LATIN AMERICA MEXICO HAS BEEN A BIG RECIPIENT OF RECENT US INVESTMENT AS COMPANIES SEEK TO CAPITALIZE ON ITS PROXIMITY INEXPENSIVE LABOR AND THE PENDING NORTH AMERICAN TRADE PACT IN ADDITION TO MEXICO A HOST OF OTHER DEVELOPING NATIONS INCLUDING CHINA INDIA ARGENTINA AND MALAYSIA ARE LURING AMERICAN INVESTORS FOR A REASON BEYOND LOW WAGES THEY ARE EMERGING AS HUGE MARKETS IN AND OF THEMSELVES THIS SIGNALS A FUNDAMENTAL SHIFT IN STRATEGY FOR MANY US COMPANIES IN DOING BUSINESS WITH THE DEVELOPING WORLD IN THE PAST AMERICAN COMPANIES SET UP FACTORIES THAT MAINLY EXPORTED THEIR OUTPUT TO RICHER NATIONS NOW WITH INCOMES IN DEVELOPING COUNTRIES RISING AND WITH MANY OF THE COUNTRIES REDUCING TRADE BARRIERS AND BUREAUCRATIC HURDLES MANY US COMPANIES ARE FINDING MARKETS FOR CONSUMER GOODS INVESTING IN PRIVATIZATIONS OF STATE INDUSTRIES AND BIDDING FOR INFRASTRUCTURE PROJECTS SUCH NEWFOUND INTEREST IS IMPORTANT FOR THE US ECONOMY WITH THE APPETITE FOR US GOODS IN MANY DEVELOPED COUNTRIES CURBED BY SLUMPING ECONOMIES THE DEVELOPING WORLD IS PROVIDING A GROWING OUTLET FOR AMERICAN PRODUCTS EXPORTS USUALLY FOLLOW THE NEW INVESTMENTS IN DEVELOPING COUNTRIES AS AMERICAN FACTORIES ABROAD IMPORT CAPITAL EQUIPMENT AND SUPPLIES ACCORDING TO THE COMMERCE DEPARTMENT EXPORTS FROM THE US TO DEVELOPING COUNTRIES AND ASIA'S FOUR NEWLY INDUSTRIALIZED COUNTRIES OR NICS HONG KONG SINGAPORE SOUTH KOREA AND TAIWAN GREW 137 IN 1992 FROM 1991 WHILE EXPORTS TO DEVELOPED COUNTRIES ROSE ONLY 18 EXPORTS TO EASTERN EUROPE ARE UP SUBSTANTIALLY AS WELL BUT THE TOTAL VOLUME IS STILL SMALL RELATIVE TO OTHER REGIONS WHILE EXPORTS TO DEVELOPED COUNTRIES STILL FAR EXCEED THOSE TO OTHER NATIONS THE GAP IS NARROWING US COMPANIES SHIPPED 2661 BILLION IN GOODS TO DEVELOPED COUNTRIES IN 1992 AND 1668 BILLION TO THE DEVELOPING COUNTRIES AND THE NICS THE LESSDEVELOPED NATIONS ACCOUNTED FOR 75 OF US EXPORT GROWTH IN 1992 THE COMMERCE DEPARTMENT SAYS MEXICO IMPORTED AN ADDITIONAL 73 BILLION FROM THE US WHILE THE FOUR NICS ACCOUNTED FOR MOST OF THE REST OF THE INCREASE ALTHOUGH TOTAL EXPORTS LAST YEAR ACCOUNTED FOR JUST 107 OF US GROSS DOMESTIC PRODUCT THEY FUELED ABOUT HALF OF THE US ECONOMY'S GROWTH RATE OVER THE PAST FIVE YEARS SAYS WEFA GROUP INC A BALA CYNWYD PA ECONOMICCONSULTING FIRM EXPORTS ACCOUNTED FOR JUST 85 OF ECONOMIC OUTPUT IN 1980 AND 56 IN 1970 AS FOR DIRECT INVESTMENT BETWEEN 1989 AND 1992 AMERICAN COMPANIES BOOSTED THEIR INVESTMENT IN LATIN AMERICA BY 34 AND THEIR INVESTMENT IN ASIA EXCLUDING JAPAN BY 56 FAR OUTPACING THE 26 INCREASE IN OVERALL US OVERSEAS INVESTMENT THE COMMERCE DEPARTMENT SAYS US CORPORATE INVESTMENT IN EUROPE GREW AT ABOUT THAT 26 AVERAGE PACE IN TURNING INCREASINGLY TO THE DEVELOPING WORLD THE US COMPANIES WILL HAVE TO PLAY CATCHUP WITH JAPANESE AND EUROPEAN COMPETITORS WHICH HAVE BEEN FAR MORE AGGRESSIVE THERE IN ADDITION TO THAT COMPETITION THE U S COMPANIES MUST DEAL WITH LOCAL PROBLEMS WHILE CHINA AND INDIA THE WORLD'S MOST POPULOUS COUNTRIES PRESENT ENORMOUS OPPORTUNITIES THEY LIKE MOST DEVELOPING COUNTRIES CAN BE VERY DIFFICULT AND RISKY PLACESIN WHICH TO DO BUSINESS NEVERTHELESS THE DEVELOPING COUNTRIES HAVE BIG WISH LISTS INCLUDING HEAVY MACHINERY AND AEROSPACE AGRICULTURAL AND MEDICAL EQUIPMENT AND POWER PLANTS AND TELECOMMUNICATIONS GEAR INFRASTRUCTURE PROJECTS SUCH AS HIGHWAYS AND COMMUNICATIONS SYSTEMS ARE PARTICULARLY ATTRACTIVE TO US COMPANIES COUNTRIES IN SOUTHEAST AND EAST ASIA EXCLUDING JAPAN ARE EXPECTED TO SPEND 600 BILLION ON INFRASTRUCTURE BETWEEN NOW AND 1998 GENERAL ELECTRIC CO ESTIMATES THAT ELECTRICITY DEMAND IN ASIA WILL GROW AT TWICE THE WORLD RATE WITH ASIA ACCOUNTING FOR 35 OF WORLD POWERGENERATION ORDERS GE RECORDED 17 BILLION IN ASIAN ORDERS FOR POWERGENERATION EQUIPMENT IN THE PAST YEAR GE RECENTLY ANNOUNCED PLANS TO FOCUS EXTENSIVELY ON ASIA WITH NEW JOINT VENTURES TO MAKE PRODUCTS FOR DOMESTIC MARKETS INCLUDING THREE IN INDIA THIS YEAR TO MAKE LIGHTING APPLIANCES AND LOCOMOTIVES IT IS HARDLY ALONE BAUSCH & LOMB INC HAS BEGUN MAKING CONTACT LENSES AND RAYBAN SUNGLASSES IN INDIA WHILE EXPANDING ITS CHINESE CONTACTLENS FACTORY TO MAKE LUBRICANTS CROWN CORK & SEAL CO IS BUILDING A BEVERAGECAN FACTORY IN ARGENTINA DUKE POWER CO IS THE LEAD INVESTOR AND MANAGER IN TWO NEWLY PRIVATIZED POWER COMPANIES IN ARGENTINA AND PPG INDUSTRIES INC RECENTLY COMMISSIONED ITS FOURTH FACTORY IN CHINA WHERE OFFICE TOWERS AND HOTELS ARE BLOSSOMING WE'RE FOCUSING MORE OF OUR NONUS EXPANSION TOWARD THE ASIAPACIFIC THAN IN THE 1980S WHEN WE WERE CONCENTRATING MORE ON EUROPE SAYS A SPOKESMAN FOR THE PITTSBURGH GLASS MAKER WHOSE INVESTMENT IN THE ASIANPACIFIC REGION IS NOW 500 MILLION TRIPLE THAT IN EUROPE THE US COMPANIES ALSO ARE FINDING BURGEONING MARKETS FOR HOUSEHOLD GOODS IN ADDITION TO A SUBSTANTIAL EXPANSION IN MEXICO COLGATEPALMOLIVE CO LAST YEAR ADDED A TOOTHBRUSH FACTORY IN COLOMBIA A TOOTHPASTE PLANT IN BRAZIL AND A FACILITY TO MAKE MOUTH RINSE IN CHILE COLGATE'S LATIN AMERICAN SALES INCREASED 21 IN 1992 EXCLUDING SALES FROM ITS ACQUISITION OF MENNEN TO 14 BILLION US EXPORTS TO THE DEVELOPING WORLD INCREASE IMPORTS TO THE US FROM MANY OF THESE COUNTRIES HAVE SURGED AS WELL FUELING US TRADE DEFICITS WITH COUNTRIES INCLUDING CHINA AND INDIA BUT THE US AND ITS DEVELOPINGCOUNTRY PARTNERS HAVE BECOME INCREASINGLY INTERDEPENDENT IN RECENT YEARS LOIS QUINN AN ECONOMIST AT WEFA GROUP SAYS U S PRODUCERS ARE EXPORTING TO ASIA THEIR ADVANCED TECHNOLOGY AND CAPITAL EQUIPMENT AND THESE COUNTRIES ARE EXPORTING THEIR LOWVALUEADDED LABORINTENSIVE GOODS TO THE US DIEBOLD IS MAKING HAY WHILE THE SUN SHINES IN CHINA THE GOVERNMENT IS UPGRADING 100000 BANK BRANCHES EACH OF WHICH DIEBOLD BELIEVES WILL NEED A 30000 ATM A 12000 VAULT DOOR AND SAFEDEPOSIT BOXES DIEBOLD ALREADY HAS SOLD A FEW THOUSAND ATMS TO BANKS AND CORPORATIONS AS GROWING NUMBERS OF CHINESE COMPANIES DEPOSIT WORKERS' WAGES DIRECTLY INTO BANKS TO ENSURE THAT ITS OWN US EMPLOYEES ARE PREPARED TO DO BUSINESS IN THE FUTURE DIEBOLD OFFERS CHINESE CLASSES AT ITS HEADQUARTERS IN CANTON THAT'S OHIO NOT CHINA EVERY SATURDAY MORNING 9308040149 930804 US TREASURY OFFERING OF SHORTTERM BILLS TO RAISE 108 BILLION WASHINGTON THE TREASURY PLANS TO RAISE 108 BILLION IN CASH WITH THE SALE MONDAY OF ABOUT 244 BILLION IN SHORTTERM BILLS TO REDEEM 2332 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON NOV 12 1993 AND FEB 10 1994 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794G57 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794H80 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9308040148 930804 WHO'S NEWS FINANCE CHIEF QUITS AT LLOYD'S OF LONDON AFTER ONLY 4 MONTHS SPECIAL TO THE WALL STREET JOURNAL LONDON DAVID BRUCE FINANCE DIRECTOR OF THE LLOYD'S OF LONDON INSURANCE MARKET RESIGNED AFTER ONLY FOUR MONTHS ON THE JOB LLOYD'S SAID MR BRUCE RESIGNED OVER THE WEEKEND TO PURSUE OTHER INTERESTS IT SAID HIS DEPARTURE REFLECTED THE BUILDING OF A NEW TOP MANAGEMENT TEAM AT THE CORPORATION LLOYD'S GAVE NO OTHER DETAILS BUT THE TIMES OF LONDON QUOTED UNNAMED LLOYD'S SOURCES AS SAYING THAT MR BRUCE HAD RUN INTO CONFLICTS WITH DAVID ROWLAND CHAIRMAN OF LLOYD'S AND PETER MIDDLETON CHIEF EXECUTIVE OFFICER STEPHEN HALL A FORMER PARTNER AT THE ACCOUNTANCY FIRM OF ERNST & YOUNG HAS TAKEN OVER AS TEMPORARY FINANCE DIRECTOR LLOYD'S KNOWN FOR INSURING EVERYTHING FROM ROCK STARS TO JUMBO JETS IS UNDERGOING THE WORST CRISIS IN ITS 305YEAR HISTORY IT SUFFERED LOSSES OF ABOUT 9 BILLION FROM 1988 TO 1991 IT HAS BLAMED ITS STAGGERING LOSSES ON A STRING OF NATURAL DISASTERS AND ASBESTOS LAWSUITS MANY OF THE MARKET'S INVESTORS WHICH ARE SUBJECT TO UNLIMITED LIABILITY BLAME INSIDER DEALINGS 9308040147 930804 SOME PEOPLE WORK IN HOLLYWOOD FOR DECADES AND REMAIN OBSCURE BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD NOT SINCE THE BLOCKBUSTER PRETTY WOMAN HAS HOLLYWOOD BUZZED SO MUCH ABOUT A CALL GIRL ONLY THIS TIME THERE MIGHT NOT BE A FAIRYTALE ENDING BETWEEN STUDIO SCREENINGS AND OVER PASTA LUNCHES THE WHOLE TOWN SEEMS TO BE TALKING ABOUT HEIDI FLEISS THE SOCALLED MADAM TO THE STARS WHO WAS BUSTED IN JUNE FOR ALLEGEDLY RUNNING A BIG HIGHRENT PROSTITUTION RING PEOPLE ARE GETTING NERVOUS BECAUSE MS FLEISS REPORTEDLY HAS SAID SHE MIGHT MAKE PUBLIC HER LITTLE BLACK BOOK WHICH WORD HAS IT READS LIKE THE INVITATION LIST TO THE OSCAR CEREMONIES DAILY VARIETY SAYS SHE'S WILLING TO SELL HER STORY TO A PUBLISHING COMPANY FOR 1 MILLION MS FLEISS WHO IS OUT ON BAIL IS TO BE ARRAIGNED MONDAY IN STATE COURT HERE ON CHARGES OF PANDERING PIMPING AND COCAINE DISTRIBUTION THE 27YEAROLD DAUGHTER OF A LOS ANGELES PEDIATRICIAN HAD A THREEYEAR RUN AS HOLLYWOOD'S FAVORITE MATCHMAKER POLICE SAY SHE ALLEGEDLY RAN HER BUSINESS WHICH CHARGED CUSTOMERS 1500 OUT OF A MELROSE AVENUE COTTAGE AND LATER A SPRAWLING HOUSE PURCHASED LAST SUMMER FROM ACTOR MICHAEL DOUGLAS MS FLEISS AND HER LAWYER COULDN'T BE REACHED FOR COMMENT POLICE SAY THERE'S LITTLE REASON FOR CONCERN THAT HIGHPOWERED HOLLYWOOD PLAYERS WILL BE HURT IN THE SCANDAL WE HAVE NO INTEREST IN PUBLICIZING ANY NAMES OF ANY TRICKS OR JOHNS SAYS LA POLICE DEPARTMENT ADMINISTRATIVE VICE CAPT GLENN ACKERMAN WHO ARRANGED THE STING THAT NETTED MS FLEISS BESIDES THIS WHOLE BUSINESS ABOUT GREAT NUMBERS OF JOHNS TREMBLING IN THEIR BOOTS PERSONALLY I DON'T THINK THE BULK OF THEM WOULD CARE CAPT ACKERMAN SAYS HE HAS BEEN FLOODED WITH MEDIA INQUIRIES SINCE VARIETY AND THE LOS ANGELES TIMES BROKE THE STORY SUNDAY AFTER WEEKS OF WATERCOOLER GOSSIP MORE EXECUTIVES SEEM CONCERNED THEY'LL BE CUT OUT OF ANY DEAL TO FILM THE SAGA ALREADY ONE DEVELOPMENT EXECUTIVE HAS REPORTEDLY OFFERED MS FLEISS 300000 FOR THE RIGHTS TO HER STORY 9308040146 930804 WHO'S NEWS AT&T CAPITAL CORP AT&T CAPITAL CORP MORRISTOWN NJ THOMAS C WAJNERT 50 YEARS OLD WAS NAMED CHAIRMAN OF THIS EQUIPMENT LEASING AND FINANCE COMPANY FORMERLY A UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO MR WAJNERT CONTINUES AS CHIEF EXECUTIVE OFFICER AS CHAIRMAN HE SUCCEEDS ALEX J MANDL FORMERLY AT&T'S CHIEF FINANCIAL OFFICER WHO WAS RECENTLY NAMED EXECUTIVE VICE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE COMMUNICATIONS SERVICES GROUP OF AT&T 9308040145 930804 WHO'S NEWS EKCO GROUP INC EKCO GROUP INC NASHUA NH DONATO A DENOVELLIS 48 YEARS OLD WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS HOUSEHOLD PRODUCTS CONCERN AS CHIEF FINANCIAL OFFICER HE SUCCEEDS ROBERT STEIN 54 WHO CONTINUES AS PRESIDENT AND CHIEF EXECUTIVE OFFICER MR DENOVELLIS WAS SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF XEROX FINANCIAL SERVICES INC A UNIT OF XEROX CORP 9308040144 930804 WHO'S NEWS AMERICAN OIL & GAS CORP AMERICAN OIL & GAS CORP HOUSTON MICHAEL T FADDEN HAS RESIGNED AS EXECUTIVE VICE PRESIDENT FOR MARKETING SUPPLY AND TRANSPORTATION THIS OIL AND GAS COMPANY SAID THE 52YEAROLD MR FADDEN ALSO RESIGNED FROM THE BOARD DECREASING THE NUMBER OF DIRECTORS TO SEVEN AMERICAN OIL & GAS SAID MR FADDEN RESIGNED TO PURSUE OTHER BUSINESS AND PERSONAL INTERESTS 9308040143 930804 WHO'S NEWS AMERICAN HOME PRODUCTS CORP AMERICAN HOME PRODUCTS CORP NEW YORK CLIFFORD L ALEXANDER JR 59 YEARS OLD WAS ELECTED A DIRECTOR OF THIS PHARMACEUTICALS AND FOODS CONCERN INCREASING THE BOARD TO 14 MR ALEXANDER IS PRESIDENT OF ALEXANDER & ASSOCIATES INC A PRIVATE CONSULTING FIRM A PAST SECRETARY OF THE ARMY AND FORMER CHAIRMAN OF THE FEDERAL EQUAL EMPLOYMENT OPPORTUNITY COMMISSION 9308040142 930804 WHO'S NEWS UPJOHN CO'S NOVITCH TO RETIRE FROM FIRM AT END OF THIS YEAR KALAMAZOO MICH UPJOHN CO WHICH HAS BEEN WITHOUT A CHAIRMAN SINCE APRIL SAID VICE CHAIRMAN MARK NOVITCH WHO OVERSEES REGULATORY AND EXTERNAL AFFAIRS WILL RETIRE DEC 20 THE RETIREMENT OF MR NOVITCH 61 YEARS OLD COMES AT A PARTICULARLY CRITICAL TIME FOR THE DRUG MAKER CHAIRMAN AND CHIEF EXECUTIVE THEODORE COOPER DIED IN APRIL FROM COMPLICATIONS FROM A BONEMARROW TUMOR A SUCCESSOR FOR DR COOPER HASN'T BEEN NAMED BUT UPJOHN SAID ITS SEARCH COMMITTEE HOPES TO HAVE A RECOMMENDATION TO THE BOARD BY THE END OF THE YEAR THE DECISION TO LEAVE HAS BEEN TERRIBLY DIFFICULT BUT I BELIEVE THE SPECIFIC CHALLENGES GIVEN TO ME ON JOINING THE COMPANY HAVE LARGELY BEEN MET MR NOVITCH SAID IT'S COME TO A POINT NOW WHERE I THINK I MADE A CONTRIBUTION THE COMPANY IS IN THE MIDST OF ORGANIZATIONAL CHANGES AND SOME OF THE RESPONSIBILITIES I HAVE CAN BE PLACED JUST AS WELL OR BETTER IN OTHER WAYS LEY S SMITH ACTING CHIEF EXECUTIVE SAID ORGANIZATIONAL CHANGES RESULTING FROM MR NOVITCH'S RETIREMENT WOULD BE ANNOUNCED AT A LATER DATE MR NOVITCH JOINED UPJOHN IN 1985 AFTER SERVING AS ACTING COMMISSIONER OF THE US FOOD AND DRUG ADMINISTRATION HE WAS ELECTED TO UPJOHN'S BOARD A YEAR LATER BUT WILL ALSO RETIRE FROM THAT POST AT THE END OF THE YEAR MR NOVITCH'S TECHNICAL UNDERSTANDING OF THE FDA HELPED UPJOHN TO SHAVE MONTHS FROM REGULATORY FILINGS FOR NEW PRODUCTS THE COMPANY WAS ALSO THE FIRST TO AUTOMATE FILINGS FOR NEW PRODUCT APPLICATIONS MR NOVITCH SAID 9308040141 930804 WHO'S NEWS KIII COMMUNICATIONS CORP KIII COMMUNICATIONS CORP NEW YORK RAYMOND E MALONEY WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS PUBLISHING COMPANY'S INTERTEC PUBLISHING CORP UNIT BOTH NEW POSITIONS MR MALONEY 58 YEARS OLD HAD BEEN EXECUTIVE VICE PRESIDENT OF INTERTEC WHICH PUBLISHES FOREIGNLANGUAGE MAGAZINES NEWSLETTERS DIRECTORIES AND TECHNICAL BOOKS 9308040140 930804 WHO'S NEWS BOC GROUP BOC GROUP WINDLESHAM ENGLAND SEIFI GHASEMI 49 YEARS OLD WAS NAMED PRESIDENT OF AIRCO GASES A NEW POSITION AT THE US SUBSIDIARY OF THIS PRODUCER AND DISTRIBUTOR OF INDUSTRIAL GASES HEALTH CARE AND VACUUM TECHNOLOGY MR GHASEMI SUCCEEDS WAYNE O SMITH 50 WHO RESIGNED AS GROUP VICE PRESIDENT OF BOC GASES AMERICAS ON JULY 31 MR GHASEMI WHO HAD BEEN PRESIDENT OF THE GASES AMERICAS PROCESS SYSTEMS UNIT ALSO WILL BE REGIONAL DIRECTOR FOR BOC GASES AMERICAS WHICH HAS ABOUT 1 BILLION IN ANNUAL SALES 9308040139 930804 WHO'S NEWS LIPOSOME TECHNOLOGY INC LIPOSOME TECHNOLOGY INC MENLO PARK CALIF NICOLE GOLDBERG WAS NAMED TO THE NEWLY CREATED POSITIONS OF VICE PRESIDENT AND GENERAL COUNSEL OF THIS PHARMACEUTICAL CONCERN SHE HAD BEEN A LEGAL CONSULTANT FOR GENENTECH INC 9308040138 930804 WHO'S NEWS APPLIED EXTRUSION TECHNOLOGIES INC APPLIED EXTRUSION TECHNOLOGIES INC SALEM MASS THOMAS E WILLIAMS 46 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER WILL ASSUME THE ADDITIONAL DUTIES OF CHIEF EXECUTIVE OFFICER EFFECTIVE IMMEDIATELY HE WILL SUCCEED AMIN J KHOURY 54 WHO CONTINUES AS CHAIRMAN OF THIS MAKER OF EXTRUDED THERMOPLASTIC NETS PRIMARILY FOR THE HEALTHCARE MARKET 9308040137 930804 WHO'S NEWS BORGWARNER SECURITY CORP BORGWARNER SECURITY CORP CHICAGO RETIRED ARMY GEN H NORMAN SCHWARZKOPF 59 YEARS OLD WAS ELECTED A DIRECTOR OF THIS SECURITY SERVICES CONCERN INCREASING BOARD MEMBERSHIP TO NINE 9308040136 930804 BUSINESS BRIEF MAXXAM REPORTS SECONDQUARTER LOSS OF 158 MILLION ON ALUMINUM WOES MAXXAM INC STILL AILING FROM A WORLDWIDE ALUMINUM GLUT THAT HAS DEPRESSED PRICES SWUNG TO A NET LOSS OF 158 MILLION IN THE SECOND QUARTER THE LOSS WHICH AMOUNTS TO 167 A SHARE COMPARES WITH NET INCOME OF 14 MILLION OR 15 CENTS A SHARE A YEAR EARLIER SALES AT THE HOUSTON FOREST PRODUCTS REAL ESTATE AND ALUMINUM COMPANY SAGGED 10 TO 5079 MILLION FROM 565 MILLION THE RESULTS WERE BELOW MOST ANALYSTS' ESTIMATES MAXXAM'S STOCK ENDED DOWN 3375 OR 10 AT 3050 A SHARE IN AMERICAN STOCK EXCHANGE TRADING THE COMPANY ATTRIBUTED MOST OF ITS SALES AND EARNINGS DROP TO TOUGH TIMES AT ITS 872OWNED KAISER ALUMINUM CORP UNIT WHICH HAS ACCOUNTED FOR MUCH OF THE HOLDING COMPANY'S TROUBLES THIS YEAR MAXXAM SAID IN MAY THAT BOTH COMPANIES WOULD REPORT LOSSES FOR 1993 BECAUSE OF FIRSTQUARTER ACCOUNTINGRELATED CHARGES OF 4177 MILLION OR 4414 A SHARE AND A CONTINUING ALUMINUM SLUMP KAISER'S NET LOSS FOR THE QUARTER WAS 194 MILLION OR 34 CENTS A SHARE COMPARED WITH PROFIT OF 12 MILLION OR 21 CENTS A SHARE A YEAR EARLIER SALES DROPPED 12 TO 4322 MILLION FROM 4909 MILLION KAISER'S STOCK ROSE 125 CENTS TO 7875 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING KAISER CHAIRMAN A STEPHENS HUTCHCRAFT JR SAID THE RESULTS WERE DUE TO WEAK PRICES AND LOWER SHIPMENTS OF PRIMARY ALUMINUM KASIER LIKE MANY OTHER ALUMINUM PRODUCERS WAS FORCED THIS YEAR TO CUT OUTPUT AFTER A DROUGHT IN THE PACIFIC NORTHWEST SAPPED HYDROELECTRIC POWER PRODUCTION KAISER SAID SHIPMENTS OF PRIMARY AND FABRICATED ALUMINUM PRODUCTS FELL TO 149100 METRIC TONS IN THE SECOND QUARTER FROM 177300 METRIC TONS A YEAR EARLIER A METRIC TON EQUALS 220462 POUNDS FOR THE FIRST HALF KAISER REPORTED A NET LOSS OF 5651 MILLION OR 984 A SHARE INCLUDING THE FIRSTQUARTER NONRECURRING CASH CHARGES COMPARED WITH NET INCOME OF 204 MILLION OR 36 CENTS A SHARE A YEAR EARLIER SALES FELL 83 TO 8748 MILLION FROM 9546 MILLION MAXXAM'S FIRSTHALF NET LOSS WAS 5035 MILLION OR 5321 A SHARE INCLUDING THE FIRSTQUARTER CHARGES COMPARED WITH A PROFIT OF 23 MILLION OR 24 CENTS A SHARE A YEAR EARLIER SALES FELL 64 TO 102 BILLION FROM 109 BILLION 9308040133 930804 WHO'S NEWS CATALYST SEMICONDUCTOR INC CATALYST SEMICONDUCTOR INC SANTA CLARA CALIF MICHAEL POWELL WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS SEMICONDUCTOR PRODUCT CONCERN MR POWELL WHO HAD BEEN VICE PRESIDENT OF CYPRESS SEMICONDUCTOR CO SUCCEEDS DAVID SEAR WHO RESIGNED CATALYST ALSO ELECTED EDGAR SACK AND DRAGAN ILIC TO ITS BOARD EXPANDING THE BOARD TO FOUR MEMBERS DR SACK IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ZILOG INC AND DR ILIC IS GENERAL MANAGER OF HEWLETTPACKARD CO'S INTEGRATED CIRCUITS DIVISION 9308040132 930804 WHO'S NEWS FLEET FINANCIAL GROUP INC FLEET FINANCIAL GROUP INC PROVIDENCE RI DAVID M DEFAZIO AND DENNIS M MURPHY BOTH EXECUTIVE VICE PRESIDENTS FROM FLEET'S BANKING SUBSIDIARIES HAVE BEEN NAMED REGIONAL MANAGERS OF ITS CONSUMER BANKING DIVISION WHICH COVERS MORE THAN 800 RETAIL OFFICES IN THE NORTHEAST MR DEFAZIO 53 YEARS OLD WILL BE RESPONSIBLE FOR CONSUMER BANKING IN MAINE NEW HAMPSHIRE AND NEW YORK MR MURPHY 45 WILL BE RESPONSIBLE FOR CONNECTICUT MASSACHUSETTS AND RHODE ISLAND 9308040131 930804 BOMBAY CO'S SALES RISE 36 FORT WORTH TEXAS BOMBAY CO SAID ITS SALES FOR THE FOUR WEEKS ENDED SUNDAY ROSE 36 TO 174 MILLION FROM 128 MILLION A YEAR EARLIER THE SPECIALTY RETAILER SAID SALES AT STORES OPEN MORE THAN A YEAR INCREASED 22 DURING THE PERIOD THE COMPANY SAID ITS SAMESTORE SALES INCREASE INCLUDES 29 STORES THAT WERE EXPANDED DURING THE PAST YEAR EXCLUDING THOSE LARGER STORES SAMESTORE SALES IN JULY JUMPED 14 THE COMPANY SAID 9308040130 930804 LETTERS TO THE EDITOR WHY WOULD HE STEAL FROM HIMSELF YOUR JUNE 28 EDITORIAL SHEIK DOWN APPLAUDS A CIVIL RICO LAWSUIT FILED BY FIRST AMERICAN AND ITS TRUSTEE THE FLAWED PREMISE OF THE LAWSUIT AND THE EDITORIAL SEEMS TO BE AS FOLLOWS THE RULER OF ABU DHABI WHO IS THE PRESIDENT OF THE UNITED ARAB EMIRATES A US ALLY WANTED TO CONTROL A US BANK RATHER THAN SIMPLY BUYING ONE OUTRIGHT HE DECIDED TO FORM AN ALLIANCE WITH AN UNSCRUPULOUS PAKISTANI BANKER AGHA HASAN ABEDI THE FOUNDER OF BCCI TO FUND THE ACQUISITION MEMBERS OF THE RULING FAMILY INVESTED OR DEPOSITED MORE THAN 4 BILLION IN OR WITH BCCI AND THE RULER PLACED ABEDI IN CHARGE OF A PERSONAL INVESTMENT PORTFOLIO OF MORE THAN 22 BILLION OVER THE COURSE OF A DECADE THE RULING FAMILY ACTED IN CONCERT WITH ABEDI WHILE ABEDI APPLIED MORE THAN 6 BILLION OF THEIR FUNDS TO VARIOUS FRAUDS AND DECEPTIONS INCLUDING THE SECRET PURCHASE OF A US REGIONAL BANKING COMPANY FIRST AMERICAN WORTH 180 MILLION IN 1982 THE RULING FAMILY WAS WILLING TO HAVE BILLIONS OF DOLLARS LOOTED IN THIS WAY IN ORDER TO HAVE INFLUENCE IN WASHINGTON ALTHOUGH THERE IS NO EVIDENCE THAT FIRST AMERICAN ENGAGED IN ANY WRONGDOING OR INFLUENCEPEDDLING THERE IS A MUCH MORE LOGICAL ACCOUNTING OF THE FACTS ONE THAT DOES NOT REQUIRE THE ASSUMPTION THAT RULING FAMILY MEMBERS STOLE FROM THEMSELVES AFTER THE DISCOVERY IN 1990 THAT BCCI MANAGEMENT IS ENGAGED IN FRAUD AND DECEPTION AND THAT MOST OF THE FUNDS PLACED UNDER ABEDI'S MANAGEMENT HAVE BEEN STOLEN OR WASTED REPRESENTATIVES OF THE RULING FAMILY AND THE ABU DHABI GOVERNMENT INITIATE AN INVESTIGATION AND DEVELOP IN COORDINATION WITH THE BANK OF ENGLAND A REFINANCING PACKAGE TO PREVENT A FINANCIAL DISASTER FOR BCCI'S DEPOSITORS AND CREDITORS AS PART OF THE INVESTIGATION THEY LEARN THAT BCCI SECRETLY OWNS FIRST AMERICAN THROUGH NOMINEES AND THAT THE RULING FAMILY AND THE ABU DHABI INVESTMENT AUTHORITY ADIA ARE THE ONLY INVESTORS WHO USED REAL MONEY NOT NONRECOURSE LOANS FROM BCCI TO PURCHASE THEIR STOCK THIS POINT HAS BEEN ACKNOWLEDGED REPEATEDLY BY THE PROSECUTORS IN THE ALTMAN TRIAL THE RULING FAMILY NOTIFIES THE FEDERAL RESERVE THAT FIRST AMERICAN IS OWNED BY BCCI THROUGH NOMINEES AND BCCI IS REQUIRED TO DIVEST ITS FIRST AMERICAN OWNERSHIP A TEAM OF FEDERAL RESERVE INVESTIGATORS COMES TO ABU DHABI AT THE INVITATION OF THE RULING FAMILY AND REVIEWS THOUSANDS OF DOCUMENTS WHICH THE TEAM SUBSEQUENTLY IS GIVEN AND WHICH IT SHARES WITH THE PROSECUTORS TO DEVELOP INDICTMENTS AND ENFORCEMENT ACTIONS AGAINST BCCI AND THE NOMINEES BCCI IS SHUT DOWN IN THE MEANTIME FIRST AMERICAN'S FINANCIAL CONDITION WORSENS DUE LARGELY TO A HIGH CONCENTRATION OF REALESTATE LOANS TO AVOID A DEFAULT ON OUTSTANDING FIRST AMERICAN DEBT THE RULING FAMILY AND ADIA RESPOND TO URGENT REQUESTS FROM FIRST AMERICAN AND PROVIDE FINANCING SUBSEQUENTLY AFTER A MEETING IN LONDON BETWEEN REPRESENTATIVES OF THE RULING FAMILY AND SENIOR FEDERAL RESERVE OFFICIALS ADDITIONAL LOANS ARE MADE IN ALL THE RULING FAMILY AND ADIA PROVIDE 190 MILLION BETWEEN DECEMBER 1990 AND MARCH 1992 THEY ALSO ASSIST THE FEDERAL RESERVE AND THE OUTSIDE FIRST AMERICAN DIRECTORS BY INDEMNIFYING NEW MANAGEMENT AND SUPPORTING A TRUST TO EFFECT A COMPLETE SEPARATION BETWEEN FIRST AMERICAN AND BCCI DUE TO THIS FINANCIAL SUPPORT AND THE EFFORTS OF THE TRUSTEE THE REMAINING FIRST AMERICAN BANKS ARE SOLD FOR 453 MILLION THE TRUSTEE HOWEVER INFORMS THE RULING FAMILY THAT THE CRITICAL FINANCIAL SUPPORT IT PROVIDED WILL NOT BE REPAID WHEN WE ASK THE COURT THAT APPOINTED THE TRUSTEE TO EXPEDITE PAYMENT THE TRUSTEE USES THE FUNDS PROVIDED TO RESCUE THE BANKS TO SUE THE RULING FAMILY IN A CIVIL RICO ACTION ALLEGING THAT THEY HARMED FIRST AMERICAN BECAUSE SOME OF THE 6 BILLION STOLEN FROM THEM WAS USED TO BUY IT WHAT'S SO DIFFERENT ABOUT ABU DHABI THAT IT TURNS THE JOURNAL ON ITS HEAD IN NOVEMBER 1991 YOU WROTE THAT CIVIL RICO IS A MONSTER THAT LETS PLAINTIFF LAWYERS INVOKE FRAUD' SMEAR A CORPORATE DEFENDANT AS A RACKETEER' AND EXTORT A SETTLEMENT TO GO AWAY NOW YOU CONDONE RICO SUITS BY PLAINTIFFS WHO WANT TO AVOID REPAYING VALID AND BINDING DEBTS YOU'RE RIGHT ABOUT ONE THING IT'S A SHAKEDOWN 9308040129 930804 LAW LEGAL BEAT ABA UNIT FINDS CHILDREN'S COURTS IN DISARRAY URGES UNIFIED SYSTEM BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL THE SUBJECT OF CHILDREN'S RIGHTS EVOKES IMAGES THESE DAYS OF CHILDREN DIVORCING THEIR PARENTS OR SUING THEM FOR DAMAGES BUT A REPORT BY A LAWYERS' GROUP ARGUES THAT CHILDREN'S REAL LEGAL PROBLEMS ARE BOTH MORE MUNDANE AND FAR MORE WIDESPREAD THE STUDY BY AN AMERICAN BAR ASSOCIATION COMMISSION DESCRIBES A CHILDREN'S COURT SYSTEM IN DISARRAY WITH FAMILIES HAVING TO TRUCK FROM ONE COURT TO ANOTHER TO SOLVE RELATED PROBLEMS INVOLVING SUCH ISSUES AS CHILD ABUSE CUSTODY PARENTS' CHILD SUPPORT PROVISION OF SOCIAL SERVICES AND SUPERVISION OF DELINQUENT CHILDREN IN VIRTUALLY ALL CASES IN VIRTUALLY ALL COMMUNITIES THE MYRIAD COURTS AND SOCIALSERVICE AGENCIES DO NOT COMMUNICATE ADEQUATELY WITH EACH OTHER RESULTING IN UNNECESSARY DELAY DUPLICATION AND CONTRADICTORY RULINGS AND RECOMMENDATIONS THE REPORT SAID THE REPORT WHICH ENDORSES THE CREATION OF UNIFIED COURT SYSTEMS TO HANDLE FAMILYRELATED ISSUES IS EXPECTED TO ADD FUEL TO A MOVEMENT THAT ALREADY EXISTS IN SOME STATES TO CREATE SUCH SYSTEMS HAWAII AND NEW JERSEY ARE AMONG THE STATES THAT HAVE TRIED TO VARYING DEGREES TO COMBINE COURTS OVERSEEING NEGLECT DELINQUENCY ADOPTION AND SOME RELATED MATTERS SOME ABA MEMBERS EXPECT THE REPORT TO RECEIVE SPECIAL ATTENTION FROM THE CLINTON ADMINISTRATION WHICH HAS TARGETED THE PLIGHT OF POOR CHILDREN YESTERDAY BAR OFFICIALS FORMALLY PRESENTED THE REPORT TO ATTORNEY GENERAL JANET RENO AND HILLARY RODHAM CLINTON MRS CLINTON WHO HAS WRITTEN ON CHILDREN'S RIGHTS ISSUES SPOKE BRIEFLY AND INVITED ABA INPUT ON HOW GOVERNMENT CAN BETTER SERVE THE NEEDS OF CHILDREN AND FAMILIES THE REPORT WAS THE RESULT OF SIX MONTHS OF WORK BY A COMMISSION HEADED BY A LEON HIGGINBOTHAM JR A FORMER FEDERAL APPEALSCOURT JUDGE WHOSE LAW FIRM PAUL WEISS RIFKIND WHARTON & GARRISON DEVOTED 300000 OF UNBILLED TIME AND RESOURCES TO THE EFFORT ONE THEME IS THAT FAMILY COURTS HAVE BEEN PROVIDED INSUFFICIENT RESOURCES ACCORDING TO THE REPORT LOS ANGELES COUNTY JUVENILE COURT JUDGES CAN DEVOTE ONLY ABOUT 10 MINUTES TO EACH CASE IN COOK COUNTY ILL SEVEN JUVENILEDELINQUENCYCOURT JUDGES RECEIVE 13000 NEW CASES A YEAR THE REPORT SAYS THAT FINANCING IS ONLY PART OF THE PROBLEM BUT IT FAULTS THE FEDERAL GOVERNMENT FOR FAILING TO RECOGNIZE THE IMPORTANCE OF PROVIDING ADEQUATE SUPPORT TO STATE COURT SYSTEMS WHEN EXPANDED WORKLOADS RESULT FROM FEDERAL LAW ADVOCATES FOR CHILDREN HAVE LONG MADE SIMILAR COMPLAINTS ABOUT THE CIVIL AND CRIMINAL JUVENILEJUSTICE SYSTEMS FOR EXAMPLE IN A CIVIL RIGHTS SUIT PENDING IN FEDERAL COURT THE AMERICAN CIVIL LIBERTIES UNION ALLEGES THAT PHILADELPHIA'S CHILDWELFARE SYSTEM HAS FAILED TO MEET THE NEEDS OF ABUSED AND NEGLECTED CHILDREN BUT THE SUIT ALSO SINGLES OUT THE PHILADELPHIA COURT OF COMMON PLEAS FOR FAILING TO ENSURE THAT A SUFFICIENT NUMBER OF JUDGES HAVE BEEN ALLOCATED TO HANDLE CHILDREN'S CASES THE HEARINGS ARE SO PERFUNCTORY SAYS MARCIA ROBINSON LOWRY AN ACLU LAWYER THAT THEY DON'T CONSTITUTE ANY JUDICIAL OVERSIGHT AT ALL A SPOKESMAN FOR THE COURT SYSTEM SAID HE COULDN'T COMMENT ON PENDING LITIGATION ECHOING SIMILAR COMPLAINTS ABOUT OTHER COURT SYSTEMS MS LOWRY SAYS THAT JUDGES OFTEN DON'T HAVE SUFFICIENT INFORMATION FROM SOCIALSERVICE AGENCIES TO MAKE INFORMED DECISIONS ABOUT A CHILD'S FUTURE SOME CHILDREN'S ADVOCATES AND COURT OFFICIALS WELCOME THE COMMISSION'S ENDORSEMENT OF UNIFIED FAMILY COURTS BECAUSE THEY BELIEVE THAT PUTTING FAMILY CASES UNDER ONE ROOF WILL IMPROVE EFFICIENCY EVEN IF COURTS REMAIN UNDERFUNDED MICHAEL R PHILLIPS DEPUTY ADMINISTRATOR OF UTAH'S JUVENILE COURT SAYS THAT HIS STATE HAS BEEN STUDYING THE POSSIBILITY OF UNIFYING FAMILY COURTS FOR DECADES AND THAT IT'S LIKELY TO GO AHEAD WITH A PLAN IN THE NEXT FEW YEARS HE PREDICTS THAT SUCH A SYSTEM WILL PREVENT SITUATIONS IN WHICH JUDGES ISSUE CONFLICTING ORDERS IN NEGLECT AND CUSTODY CASES FOR EXAMPLE AMONG THE COMMISSION'S OTHER RECOMMENDATIONS IS THAT LAWYERS PROVIDE MORE FREE LEGAL SERVICES TO CHILDREN AND ALSO THAT THEY GO BEYOND THEIR TRADITIONAL ROLE AS COURT ADVOCATES TO PRESS FOR BETTER SERVICES OF ALL KINDS FOR CHILDREN THE PANEL ENCOURAGES LAWYERS TO BACK LEGISLATION TO IMPROVE EDUCATION AND HEALTH CARE AND TO WORK TO CHANGE POLICIES THAT DISCRIMINATE AGAINST ADOPTED CHILDREN BUT EVEN SOME LAWYERS WHO AGREE WITH THE REPORT ARE SKEPTICAL ABOUT ITS IMPACT I'VE SEEN LOTS OF GOOD REPORTS BUT VERY LITTLE CHANGE OVER THE LAST 20 YEARS SAYS MS LOWRY A NEW JERSEY TOWN WAS BARRED FROM REPLACING ITS POLICE WITH A PRIVATE SECURITY FORCE A JUDGE RULED BECAUSE THE GUARDS WERE PERFORMING POLICE FUNCTIONS FOR WHICH THEY WEREN'T TRAINED OR AUTHORIZED THE DECISION BY SUSSEX NJ TO HIRE THE PRIVATE SECURITY SERVICE WAS OPPOSED BY THE NEW JERSEY ATTORNEY GENERAL'S OFFICE WHICH SUED TO STOP THE ARRANGEMENT POLICE WORK IS JUST TOO COMPLEX TO BE HANDED OVER TO PRIVATE INDIVIDUALS SAID LARRY HOLTZ A DEPUTY ATTORNEY GENERAL IN EARLY JUNE SUSSEX BEGAN USING SIX EMPLOYEES OF EXECUTIVE SECURITY & INVESTIGATIVE SERVICES INC OF TOTOWA NJ TO PATROL THE TOWN AT HALF WHAT A REGULAR POLICE FORCE WOULD COST BUT REGINALD STANTON A SUPERIOR COURT JUDGE IN MORRISTOWN NJ ORDERED SUSSEX TO END ITS CONTRACT WITH THE COMPANY BY AUG 10 GERALD GREGORY EXECUTIVE SECURITY'S PRESIDENTSAID IT ALREADY HAS REMOVED ITS GUARDS FROM THE TOWN SUSSEX OFFICIALS HAVEN'T DECIDED WHETHER TO APPEAL THE RULING SUSSEX'S ARRANGEMENT SPARKED NATIONWIDE CONTROVERSY AS MANY US CITIES NOW SUPPLEMENT THEIR POLICE FORCES WITH PRIVATE SECURITY SERVICES LAWYERS SAY THAT LOCAL GOVERNMENTS THAT RELY ON PRIVATE SECURITY FORCES HOWEVER FACE ADDITIONAL LEGAL LIABILITY BECAUSE THE GUARDS DON'T HAVE THE SAME PROTECTION FROM LAWSUITS THAT LAWENFORCEMENT AUTHORITIES HAVE WHO'S NEWS STEPHEN J MARKMAN FORMERLY US ATTORNEY FOR THE EASTERN DISTRICT OF MICHIGAN HAS JOINED DETROIT LAW FIRM MILLER CANFIELD PADDOCK & STONE WHERE HE'S OF COUNSEL JYOTI THOTTAM CONTRIBUTED TO THIS ARTICLE 9308040127 930804 DIVIDEND NEWS HERSHEY FOODS CORP HERSHEY FOODS CORP HERSHEY PA ANNOUNCED AN 11 INCREASE IN THE QUARTERLY DIVIDEND ON ITS COMMON STOCK TO 30 CENTS A SHARE FROM 27 CENTS A SHARE THE CHOCOLATE FOOD PRODUCTS AND RESTAURANT CONCERN ALSO DECLARED AN 11 INCREASE IN ITS CLASS B STOCK DIVIDEND TO 273 CENTS A SHARE FROM 245 CENTS A SHARE BOTH DIVIDENDS ARE PAYABLE SEPT 15 TO STOCK OF RECORD AUG 26 9308040126 930804 INSIDE TRACK MORGAN STANLEY INSIDERS HEDGE THEIR BETS BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MORGAN STANLEY GROUP INC'S SHARE PRICE HAS SOARED 32 DURING THE PAST YEAR BUOYED BY WALL STREET'S RAGING UNDERWRITING BOOM CAN THERE BE MORE STEAM LEFT IN THE STOCK OF THIS WHITESHOE SECURITIES BROKER SOME ANALYSTS SAY YES BUT A HANDFUL OF MORGAN EXECUTIVES AND DIRECTORS APPEAR TO BE HEDGING THEIR BETS SINCE MIDMAY 11 PAST AND PRESENT MORGAN STANLEY INSIDERS HAVE SOLD OR FILED PLANS WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL MORE THAN 145 MILLION MORGAN STANLEY SHARES VALUED IN EXCESS OF 87 MILLION THE LOFTY PRICE OF MORGAN SHARES MAY EXPLAIN THE SALES THE STOCK HIT AN ALLTIME HIGH ADJUSTED FOR STOCK SPLITS OF 7050 THURSDAY THE INSIDER SALES CAME AT AVERAGE PRICES RANGING FROM 6114 TO 7031 A SHARE SEC FILINGS SHOW MORGAN SHARES CLOSED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY AT 70 EACH UP 125 CENTS MORE THAN HALF OF THE STOCK SALES 884863 SHARES WERE MADE BY ROBERT F GREENHILL ONETIME HEIR APPARENT OF MORGAN WHO LEFT THE COMPANY IN JUNE FOR A POSITION AS CHAIRMAN OF THE NEWLY CREATED SMITH BARNEY SHEARSON SECURITIES BROKERAGE UNIT OF PRIMERICA CORP NONETHELESS THE INSIDER SALES EXCLUDING MR GREENHILL'S EXCEED ANY LEVEL SINCE MORGAN WENT PUBLIC IN 1986 ACCORDING TO INVEST/NET INC A FORT LAUDERDALE FLA COMPANY THAT TRACKS AND ANALYZES SEC INSIDER FILINGS FIVE OF THE OTHER INSIDERS SELLING WERE ALSO MORGAN EXECUTIVES WHO HAVE EITHER RETIRED OR RECENTLY JUMPED SHIP THE REMAINING FIVE SELLERS INCLUDED THE FIRM'S PRESIDENT JOHN MACK WHO TRIMMED HIS MILLIONSHAREPLUS HOLDINGS BY 20000 SHARES MR GREENHILL COULDN'T BE REACHED FOR COMMENT AND MR MACK DECLINED TO COMMENT THERE ARE FEW STOCKS THAT ANALYSTS WOULD RECOMMEND HOLDING IN THE FACE OF A SUBSTANTIAL RUNUP IN SHARE PRICE IN SIX MONTHS AND SIGNS OF AN INSIDER BAILOUT BUT MORGAN STANLEY IS ONE OF THEM FOR ONE THING MORGAN IS ONE OF THE MORE PROSPEROUS OF THE WALL STREET FIRMS WITH SOMETHING OF AN EDGE IN THE LUCRATIVE NEW ISSUES MARKET MORGAN HAD A 61 MARKET SHARE OF ALL THE US STOCK AND BOND DEALS DONE DURING THE FIRST SIX MONTHS AND A RANKING OF SEVENTH ACCORDING TO SECURITIES DATA CO BUT IN FEES IT RANKED FIFTH WITH A 7 SHARE OF THE UNDERWRITING PIE OR A TAKE OF 3026 MILLION MOREOVER ANALYSTS SAID MORGAN STANLEY MAY BE BETTER POSITIONED TO RIDE OUT THE EVENTUAL END OF THE WALL STREET UNDERWRITING BOOM THAN SOME OF ITS COMPETITORS MORGAN HAS A GROWING GLOBAL PRESENCE SAID GUY MOSZKOWSKI ANALYST AT SANFORD C BERNSTEIN EVEN IF UNDERWRITING ACTIVITY TAILS OFF IN THE US HE SAYS MORGAN IS POSITIONED TO CAPITALIZE VERY EFFECTIVELY ON WHAT LOOKS LIKE A FALLING INTERESTRATE TREND IN EUROPE ONE TOP FINANCIAL EXECUTIVE AT MORGAN WHO DECLINED TO BE QUOTED BY NAME AGREES AS THE UNDERWRITING CALENDAR ABATES THERE ARE A LOT OF OTHER BUSINESSES WE EXPECT TO REMAIN STRONG PERFORMERS HE SAID BUSINESSES LIKE FOREIGN EXCHANGE PROPRIETARY TRADING AND MONEYMANAGEMENT AS FOR THE INSIDER SALES ALL THE EXECUTIVES HAD A HIGH PERCENTAGE OF THEIR NET WORTH IN MORGAN STANLEY EQUITY AND NEEDED TO DIVERSIFY THE COMPANY COULD ALSO EXPERIENCE ANOTHER NEARTERM POP IN ITS STOCK WHEN IT RELEASES SECONDQUARTER EARNINGS IN ABOUT THREE WEEKS MORGAN WHOSE FISCAL YEAR ENDS JAN 31 LAGS THE STREET IN REPORTING EARNINGS BUT GAINS OF 25 TO 30 ABOVE THE YEAREARLIER QUARTER HAVE BEEN ROUTINE FOR THE BROKERAGE INDUSTRY IN THE FIRST QUARTER ENDED APRIL 30 MORGAN SURPRISED ANALYSTS WITH A 41 LEAP IN EARNINGS IT REPORTED NET INCOME OF 1958 MILLION OR 240 A SHARE COMPARED WITH NET OF 1391 MILLION OR 162 A SHARE IN THE YEAREARLIER PERIOD THE COMPANY'S RESULTS WERE WELL ABOVE ANALYSTS' FORECASTS OF ABOUT 175 A SHARE MORGAN'S REVENUE FOR THE QUARTER ROSE 18 TO 219 BILLION PROFIT CENTERS INCLUDED MORGAN'S INVESTMENT BANKING DIVISION WHERE REVENUE ROSE TO 3788 MILLION FROM 2704 MILLION IN THE COMPARABLE 1992 PERIOD IN TRADING REVENUE ROSE TO 3698 MILLION FROM 2919 MILLION A YEAR EARLIER LASTLY ANALYSTS SAID A 318 MILLION STOCKREPURCHASE PROGRAM ANNOUNCED IN FEBRUARY IS PROVIDING SOMETHING OF A FLOOR FOR THE STOCK SO FAR THE FIRM IS TWOTHIRDS TOWARD ITS GOAL ACCORDING TO A SPOKESWOMAN FOR THE COMPANY 9308040125 930804 ECONOMY RAILROAD COSTS OF FLOOD TO TOP 100 MILLION BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL THE RAILROAD INDUSTRY ESTIMATED THAT THE MIDWEST FLOODS ARE LIKELY TO COST IT 100 MILLION TO 200 MILLION IN PHYSICAL DAMAGES THOUGH TRAIN DETOURS AND LOST FREIGHT TRAFFIC COULD CONSIDERABLY RAISE THE TOLL THE ESTIMATE BY THE ASSOCIATION OF AMERICAN RAILROADS A WASHINGTON TRADE GROUP WAS ROUGHLY IN LINE WITH EARLIER CONSULTANTS' CALCULATIONS OF THE DAMAGE INFLICTED ON THE US'S RAILROADS THE RAIL INDUSTRY HAS BEEN HIT PARTICULARLY HARD BY THE FLOODING BECAUSE MANY ROUTES LIE IN RIVER VALLEYS AND MORE THAN 25 OF THE NATION'S RAIL TRAFFIC ORIGINATES TERMINATES OR PASSES THROUGH FLOODRAVAGED AREAS THE MIDWEST FLOODING IS ONE OF THE MOST DEVASTATING NATURAL DISASTERS EVER TO BEFALL AMERICAN TRANSPORTATION SAID EDWIN L HARPER THE AAR'S PRESIDENT AND CHIEF EXECUTIVE OFFICER HE SAID THAT MORE THAN 500 MILES OF TRACK HAVE BEEN UNDER WATER AT SOME TIME DURING THE FLOODING AND THAT MORE THAN 1000 TRAINS HAVE BEEN REROUTED OVER THE TRACKS OF OTHER RAILROADS TO GET AROUND FLOODED AREAS AND MAINTAIN SERVICE MEANWHILE SOME MAJOR RAILROADS SAID THAT FLOODCAUSED DELAYS HAVE LED TO A NATIONWIDE SHORTAGE OF RAIL CARS TO HAUL COAL GRAIN OCEAN CONTAINERS AND TRUCK TRAILERS UNION PACIFIC CORP SAID IT IS ENCOUNTERING FREIGHT TRAIN DELAYS OF AS LONG AS 48 HOURS IN THE ST LOUIS AREA AND EQUIPMENT SHORTAGES FROM CHICAGO TO LOS ANGELES AND SEATTLE THE COMPANY SAID IT STILL HAS SOME TRACK SEGMENTS UNDER WATER BUT EXPECTED TO HAVE A KEY ROUTE BETWEEN ST LOUIS AND KANSAS CITY BACK IN SERVICE TODAY GOODS ARE MOVING BUT THEY'RE BEING DELAYED SUBSTANTIALLY SAID DICK DAVIDSON CHAIRMAN OF UNION PACIFIC'S RAIL UNIT RAILROADS EXPECT SOME PROBLEMS TO CONTINUE EVEN AFTER THE FLOOD WATERS RECEDE MR HARPER OF THE AAR SAID HE EXPECTS ADDITIONAL WASHOUTS AND DAMAGE TO TRACK IF THE FLOOD WATERS DROP QUICKLY CREATING SWIFT CURRENTS AND BURLINGTON NORTHERN INC THE NATION'S LARGEST RAILROAD SAID IT WILL ENTER THE PEAK SHIPPING SEASON FOR SOME IMPORTANT COMMODITIES WITH TRAIN DELAYS TRACK SPEED RESTRICTIONS AND TRAFFIC CONGESTION THE NEXT COUPLE OF MONTHS WILL BE HECTIC AUGUST IS A BIG COAL MONTH AND SEPTEMBER IS PEAK HARVEST SEASON SAID A BURLINGTON NORTHERN SPOKESWOMAN THE RAILROAD SAID SOME OF ITS LINES IN THE KANSAS CITY AREA ARE STILL CLOSED BY FLOODING THOUGH THE COMPANY RESTORED ITS BUSY CHICAGODENVER ROUTE WHICH HAD BEEN SHUT SINCE JULY 12 NEVERTHELESS THE GREAT MIDWEST FLOODS AREN'T LIKELY TO PUT ANY MAJOR RAILROADS OUT OF BUSINESS THAT WOULD BE A SHARP CONTRAST TO TROPICAL STORM AGNES WHICH DEVASTATED RAILROAD LINES IN NEW YORK AND PENNSYLVANIA IN 1972 THANKS TO STREAMLINING OF TRACK AND COSTS AFTER TRANSPORTATION DEREGULATION IN 1980 RAILROADS ARE IN THEIR BEST FINANCIAL AND PHYSICAL SHAPE IN DECADES AGNES HAD BROUGHT MANY OF THE NATION'S RAILROADS TO THEIR KNEES SAID MR HARPER BUT THE RAIL INDUSTRY IS ABLE TO WEATHER A MORE SEVERE NATURAL DISASTER IN 1993 9308040124 930804 THOR INDUSTRIES JACKSON CENTER OHIO THOR INDUSTRIES INC SAID PRELIMINARY SALES RESULTS FOR ITS FOURTH QUARTER ENDED JULY 31 WERE 1105 MILLION UP 27 FROM 87 MILLION IN THE SAME PERIOD LAST YEAR THE MAKER OF RECREATIONAL VEHICLES AND SMALL AND MIDSIZE BUSES SAID PRELIMINARY SALES FOR THE YEAR TOTALED 412 MILLION UP 51 FROM 2734 MILLION A YEAR EARLIER THOR ALSO SAID IT BEGINS FISCAL 1994 WITH A RECORD ORDER BACKLOG OF ABOUT 67 MILLION AN INCREASE OF 63 FROM LAST YEAR 9308040123 930804 WOLOHAN LUMBER'S SALES GAIN SAGINAW MICH WOLOHAN LUMBER CO SAID JULY SALES INCREASED 92 TO 376 MILLION FROM 344 MILLION A YEAR AGO THE TOTAL REFLECTS A 101 INCREASE IN CONSUMER SALES AND AN 84 RISE IN SALES TO PROFESSIONAL CONTRACTORS SAMESTORE SALES INCREASED 75 WOLOHAN LUMBER OPERATES 53 LUMBER AND BUILDING MATERIAL RETAIL STORES YEARTODATE SALES GAINED 25 TO 2048 MILLION FROM 1999 MILLION COMPARABLESTORE SALES WERE UP 02 9308040122 930804 WHO'S NEWS GREENSTONE RESOURCES LTD GREENSTONE RESOURCES LTD TORONTO PETER BOJTOS WAS NAMED PRESIDENT AND TO THE NEW POST OF CHIEF EXECUTIVE OF THIS MINING CONCERN MR BOJTOS 44 YEARS OLD WAS FORMERLY PRESIDENT AND CHIEF EXECUTIVE OF CONSOLIDATED NEVADA GOLDFIELDS CORP OF DENVER AS PRESIDENT HE SUCCEEDS IAN PARK 46 WHO WILL REMAIN A DIRECTOR AND HELP TO MANAGE THE COMPANY'S GOLD MINE IN COLOMBIA HOLDERS WILL VOTE AUG 25 ON WHETHER TO APPOINT MR BOJTOS AND HUGH SNYDER 57 TO THE BOARD MR SNYDER WAS NAMED CHAIRMAN LAST MONTH 9308040120 930804 FAULKNER & GRAY INC PURCHASE NEW YORK FAULKNER & GRAY INC A UNIT OF THOMSON CORP TORONTO SAID IT PURCHASED USB CORP A CLOSELY HELD PUBLISHER OF UNITED STATES BANKER MAGAZINE THE PRICE WASN'T DISCLOSED US BANKER HAS 40000 SUBSCRIBERS FAULKNER & GRAY A SPECIALTY BUSINESS PUBLISHER AND CONFERENCE ORGANIZER SAID IT PLANS TO EXPAND THE US BANKER FRANCHISE TO OTHER PUBLICATIONS AND SERVICES FAULKNER PUBLISHES 60 PERIODICALS MANY IN THE HEALTHCARE AND ACCOUNTING FIELDS 9308040118 930804 US POSTAL SERVICE SEES DEFICIT IN '94 RATE INCREASE IN '95 BY ELIOT MORGAN STAFF REPORTER OF THE WALL STREET JOURNAL NEXT YEAR'S EXPECTED LOSS WOULD FOLLOW A PROJECTED 500 MILLION DEFICIT FOR THE CURRENT FISCAL YEAR WHICH ENDS SEPT 17 POSTAL OFFICIALS SAID IT'S TOO EARLY TO SAY HOW MUCH OF A RATE INCREASE THEY MIGHT NEED THOUGH AND THEY SAID THEY REMAIN DETERMINED TO HOLD THE LINE ON RATES UNTIL 1995 STILL THE 10MONTH PROCESS LEADING TO ANY POTENTIAL BOOST IN RATES COULD BEGIN IN FEBRUARY TO HAVE A RATE INCREASE AT THE BEGINNING OF 1995 THE SERVICE'S MANAGEMENT WOULD HAVE TO SUBMIT ANY PROPOSAL TO THE BOARD OF GOVERNORS BY THEN THE BOARD THEN WOULD SEND THE PROPOSAL TO THE INDEPENDENT POSTAL RATE COMMISSION IN APRIL POSTMASTER GENERAL MARVIN RUNYON TOLD CONGRESS THAT HE MIGHT HAVE TO SEEK AN INCREASE IN THE PRICE OF A FIRSTCLASS STAMP TO 35 CENTS AT THE TIME THE POSTAL SERVICE ANTICIPATED THAT CONGRESS WOULD CUT ITS SUBSIDY FOR NONPROFIT MAILERS BY 1 BILLION IN ADDITION IT FACED ABOUT 1 BILLION A YEAR IN ADDED HEALTH BENEFITS FOR RETIREES WHO ACCEPTED EARLY RETIREMENT AS PART OF AN EFFORT BY THE SERVICE TO REDUCE ITS WORK FORCE THE POSTAL SERVICE CUT ITS WORK FORCE BY MORE THAN 55000 EMPLOYEES LAST YEAR LARGELY THROUGH THE EARLY RETIREMENTS AND RESTRUCTURING OFFICIALS SAID THEY ARE LOOKING TO MAKE ADDITIONAL CUTS TO DEFRAY LOSSES CONGRESS ACTUALLY CUT THE SERVICE'S NONPROFIT SUBSIDY BY 360 MILLION RATHER THAN THE 1 BILLION MR RUNYON ANTICIPATED BUT RETIREE HEALTH BENEFITS AND OTHER COSTS WIDENED ITS PROJECTED DEFICIT FOR NEXT YEAR TO 15 BILLION THE SERVICE HAD PROJECTED THIS YEAR'S DEFICIT AT 22 BILLION IT CREDITS RESTRUCTURING AND AUTOMATION WITH NARROWING THE PROJECTED LOSS TO 500 MILLION IN A RECENT LETTER TO MR RUNYON REP WILLIAM CLAY D MO CHAIRMAN OF THE HOUSE COMMITTEE ON POST OFFICE AND CIVIL SERVICE SAID HE BELIEVES THE SERVICE IS USING CONGRESS AS A SCAPEGOAT I DO NOT UNDERSTAND WHY AS POSTMASTER GENERAL YOU WOULD OVERSTATE THE IMPACT OF CONGRESSIONAL BUDGET PROPOSALS AND EXAGGERATE THEIR EFFECT ON THE NEXT RATE INCREASE HE WROTE I WOULD NOTE THAT EMPLOYING THIS STRATEGY HAS DEFLECTED CRITICAL REVIEW OF THE REAL CAUSES OF ANY POSTAL RATE INCREASE MR CLAY CONTENDS THAT CONGRESSIONAL ACTION WOULD RESULT IN A FIRSTCLASS STAMP INCREASE OF ONEFOURTH OF ONE CENT HE FAULTED THE SERVICE'S MANAGEMENT FOR DRIVING UP COSTS BY REQUIRING TOO MUCH OVERTIME WORK BY SERVICE EMPLOYEES 9308040117 930804 WHO'S NEWS PRIMERICA CORP PRIMERICA CORP NEW YORK THIS DIVERSIFIED FINANCIAL SERVICES CONCERN NAMED JACK L RIVKIN 52 YEARS OLD A VICE CHAIRMAN OF ITS BROKERAGE AND INVESTMENT BANKING UNIT SMITH BARNEY SHEARSON INC THE UNIT NOW HAS SEVEN VICE CHAIRMEN MR RIVKIN JOINED THE UNIT IN MAY TO TAKE OVER THE NEWLY CREATED POST OF DIRECTOR OF GLOBAL RESEARCH A POSITION HE WILL RETAIN 9308040116 930804 LAWMAKERS CRAFT PROPOSAL TO RENEW THRIFT CLEANUP BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONGRESSIONAL NEGOTIATORS ARE RUSHING TO WRAP UP A NEW PROPOSAL TO FUND THE SAVINGSANDLOAN CLEANUP WITH THE HOPE OF WINNING APPROVAL IN THE HOUSE BY THE END OF THE WEEK THE PLAN WOULD PROVIDE 183 BILLION TO COVER LOSSES OF THE RESOLUTION TRUST CORP THE FEDERAL AGENCY THAT IS SELLING OFF THE ASSETS OF FAILED THRIFTS IT WOULD ALSO ERASE A THRIFT INDUSTRY OBLIGATION TO PAY 772 MILLION A YEAR IN INTEREST ON ABOUT 10 BILLION OF BONDS ISSUED IN 1987 TO FUND THE FIRST STEP OF THE BAILOUT WHICH MAY ULTIMATELY COST TAXPAYERS 180 BILLION IN RETURN FOR FORGIVING THE INTEREST PAYMENTS THE GOVERNMENT WOULD REQUIRE THE THRIFT INDUSTRY TO REBUILD ITS DEPOSITINSURANCE FUND WITHOUT GOVERNMENT ASSISTANCE BUT LIKE EVERY EFFORT TO FINISH PAYING THE BILL FOR THE S&L DEBACLE THE PROPOSAL RAISES A NUMBER OF POLITICAL RED FLAGS CONSUMER ADVOCATES ALREADY ARE CALLING THE PLAN A GIVEAWAY TO THE THRIFT INDUSTRY BECAUSE IT ELIMINATES INTEREST PAYMENTS REQUIRED ON THE BONDS ISSUED IN 1987 NEVERTHELESS THE CLINTON ADMINISTRATION AND THE HOUSE DEMOCRATIC LEADERSHIP SEE THE COMPROMISE BEING NEGOTIATED BY REP STEPHEN NEAL D NC AND REP RICHARD BAKER R LA AS A POSSIBLE WAY OUT OF A POLITICAL STALEMATE THAT HAS BLOCKED HOUSE APPROVAL OF RENEWED RTC FUNDING FOR MORE THAN A YEAR REPS NEAL AND BAKER WHO ARE ON THE HOUSE BANKING COMMITTEE HOPE THE BILL WILL ATTRACT THE BIPARTISAN SUPPORT NEEDED TO GET THE UNPOPULAR FUNDING BILL THROUGH THE HOUSE THE SENATE ALREADY HAS PASSED AN RTC FUNDING PLAN SO HOUSE ACTION WOULD GO A LONG WAY TOWARD GIVING THE AGENCY THE MONEY IT NEEDS TO COMPLETE CLOSING FAILED THRIFTS UNTIL IT GETS MORE FUNDS THE RTC CAN'T CLOSE UNPROFITABLE THRIFTS AND PAY OFF DEPOSITORS KEEPING THESE THRIFTS ALIVE BOOSTS THE COST OF THE CLEANUP BY AS MUCH AS 3 MILLION A DAY THE RTC ESTIMATES THE KEY ELEMENT IN THE COMPROMISE IS THE PROPOSAL TO WIPE OUT THE 772 MILLION IN ANNUAL INTEREST PAYMENTS IN RETURN FOR A REQUIREMENT THAT THE INDUSTRY RECAPITALIZE THE SAVINGS ASSOCIATION INSURANCE FUND WITHOUT GOVERNMENT HELP THE SENATE BILL PROVIDES 85 BILLION TO REBUILD THE INDUSTRYFINANCED FUND WHICH WAS DEPLETED BY A WAVE OF S&L FAILURES BUT A NUMBER OF HOUSE MEMBERS INCLUDING SOME INFLUENTIAL REPUBLICANS OBJECTED TO APPROPRIATING FUNDS TO COVER FUTURE THRIFT LOSSES THIS COULD BE VIEWED AS A REASONABLE TRADEOFF SAID LOUIS NEVINS PRESIDENT OF THE CALIFORNIA LEAGUE OF SAVINGS INSTITUTIONS THE COST OF ERASING THE INTEREST AND REPLENISHING THE FUND IS ABOUT THE SAME 85 BILLION I DON'T THINK IT'S APPROPRIATE TO VIEW THIS AS A GIFT TO THE INDUSTRY SINCE THE GOVERNMENT WILL PAY THAT MONEY ONE WAY OR ANOTHER MR NEVINS SAID 9308040115 930804 INTERNATIONAL ECONOMIST TO RUN LETTER AS SINGAPORE DEMANDED BUT ITS PUNISHMENT PERSISTS BY G PIERRE GOAD STAFF REPORTER OF THE WALL STREET JOURNAL SINGAPORE THE ECONOMIST MAGAZINE SAID IT WOULD PUBLISH A DISPUTED LETTER FROM THE SINGAPORE GOVERNMENT IN ITS NEXT ISSUE BUT THE GOVERNMENT DIDN'T REMOVE A CIRCULATION CAP AND OTHER RESTRICTIONS IT HAD IMPOSED ON THE WEEKLY MAGAZINE IN RETALIATION FOR ITS FAILURE TO PUBLISH THE LETTER EARLIER THE GOVERNMENT HOWEVER DID SAY IT WOULDN'T FOLLOW THROUGH WITH AN EARLIER THREAT TO REDUCE THE MAGAZINE'S SINGAPORE CIRCULATION IN CORRESPONDENCE RELEASED BY THE GOVERNMENT THE ECONOMIST SAID IT WILL PUBLISH THE LETTER IN ITS AUG 713 ISSUE AS PREVIOUSLY REPORTED ON MONDAY THE GOVERNMENT SAID IT WOULD PROGRESSIVELY CUT THE ECONOMIST'S CIRCULATION UNLESS IT PUBLISHED THE LETTER WHICH IS A GOVERNMENT REPLY TO A LETTER FROM SINGAPORE OPPOSITION LEADER JB JEYARETNAM THAT WAS PRINTED LAST MONTH THE MEASURES THAT WILL REMAIN IN EFFECT CAP THE WEEKLY'S SINGAPORE CIRCULATION AT ITS PRESENT LEVEL OF 7500 COPIES THE MEASURES ALSO REVOKE THE ECONOMIST'S EXEMPTION FROM A SINGAPORE LAW REQUIRING FOREIGN PUBLICATIONS TO APPLY FOR A PERMIT TO CIRCULATE TO APPOINT SOMEBODY IN SINGAPORE TO RECEIVE NOTICE OF LEGAL ACTION ON BEHALF OF THE PUBLICATION AND TO POST A BOND WITH THE GOVERNMENT AGAINST ANY FUTURE LIABILITY OR COSTS ARISING FROM LEGAL ACTION THE GOVERNMENT SET THE AMOUNT OF THE BOND AT S200000 US124000 BILL EMMOTT EDITOR OF THE ECONOMIST SAID I SEE NO REASON WHY IN THE FUTURE THIS AFFAIR SHOULD HAVE ANY IMPACT ON HOW THE MAGAZINE REPORTS ON SINGAPORE HE SAID THE ECONOMIST HAS CRITICIZED THE SINGAPORE GOVERNMENT IN THE PAST AND WILL CONTINUE TO DO SO WHEN WARRANTED MR EMMOTT ADDED THAT THE ECONOMIST HAS PUT ITS PRINTING CONTRACT WITH A COMMERCIAL PRINTER IN SINGAPORE UNDER REVIEW BUT NO DECISION HAS BEEN TAKEN HE SAID THE MAGAZINE CURRENTLY PRINTS 30000 COPIES A WEEK IN SINGAPORE FOR DISTRIBUTION THERE AND NEIGHBORING COUNTRIES MR EMMOTT SAID THE ECONOMIST WHICH IS 50OWNED BY PEARSON PLC OF BRITAIN USED TO PRINT MORE COPIES IN SINGAPORE LAST YEAR HOWEVER THE WEEKLY SET UP A SECOND REGIONAL PRINTING SITE IN HONG KONG WHERE IT NOW PRINTS 80000 COPIES A WEEK WE DID THIS PRINCIPALLY TO PROVIDE A FUTURE ESCAPE ROUTE FROM SINGAPORE MR EMMOTT SAID IT ISN'T CLEAR WHY THE ECONOMIST IS STILL BEING PUNISHED EVEN THOUGH IT HAS AGREED TO PUBLISH THE GOVERNMENT'S LETTER ABOUT MR JEYARETNAM BUT IN A SIMILAR CASE IN 1986 INVOLVING TIME MAGAZINE THE GOVERNMENT WAITED NINE MONTHS BEFORE REMOVING A CIRCULATION CAP ON TIME AFTER THE MAGAZINE HAD ACCEDED TO A GOVERNMENT DEMAND TO PUBLISH IN FULL A LETTER TO THE EDITOR REGARDING MR JEYARETNAM THE SINGAPORE GOVERNMENT HAS CONSISTENTLY CLAIMED THE RIGHT TO REPLY AND TO HAVE ITS REPLIES PUBLISHED IN FULL TO ARTICLES IN FOREIGN PUBLICATIONS THAT CIRCULATE IN SINGAPORE ALTHOUGH THE GOVERNMENT HASN'T TANGLED WITH A MAJOR FOREIGN PUBLICATION IN MORE THAN FIVE YEARS THIS RIGHT OF REPLY WAS A KEY ISSUE IN A SERIES OF DISPUTES IN 1986 AND 1987 WITH THE FOREIGN PRESS INCLUDING THE ASIAN WALL STREET JOURNAL 9308040114 930804 CINCINNATI MILACRON OVERSTATED EARNINGS BY 300000 FOR HALF CINCINNATI CINCINNATI MILACRON INC SAID IT OVERSTATED FIRSTHALF SALES BY 23 MILLION AND FIRSTHALF EARNINGS BY 300000 OR ONE CENT A SHARE BECAUSE ONE OF ITS UNITS COUNTED AS SALES ITEMS THAT HAD NOT BEEN SHIPPED THE MACHINE TOOL MAKER SAID THE OVERSTATEMENTS CAME FROM ITS SANO UNIT WHICH MAKES PLASTIC MACHINERY THE UNIT FAILED TO COMPLY WITH CINCINNATI MILACRON'S SALES CUTOFF RULE WHICH SAYS THAT ORDERS CAN'T BE COUNTED AS SALES UNTIL THEY ARE SHIPPED CINCINNATI MILACRON SAID IT DISCOVERED THE OVERSTATEMENT AFTER RECEIVING AN ANONYMOUS TIP AFTER INVESTIGATING IT FIRED A SENIOR MANAGER AT SANO LAST WEEK AND REPRIMANDED OTHERS INVOLVED BASED ON INTERNAL AND EXTERNAL AUDITS THE COMPANY SAID THE INCIDENT WAS ISOLATED AND SHOULD HAVE LITTLE OR NO EFFECT ON FULLYEAR RESULTS THE COMPANY RESTATED EARNINGS FOR THE FIRST AND SECOND QUARTERS IN THE FIRST QUARTER ENDED MARCH 27 THE COMPANY HAD A LOSS OF 485 MILLION OR 173 A SHARE AFTER AN ACCOUNTING CHARGE ON 2193 MILLION IN SALES ORIGINALLY THE COMPANY SAID IT HAD A LOSS OF 478 MILLION OR 171 A SHARE AFTER AN ACCOUNTING CHARGE ON 221 MILLION IN SALES IN THE SECOND QUARTER ENDED JUNE 19 THE COMPANY EARNED 18 MILLION OR FIVE CENTS A SHARE AFTER AN ACCOUNTING CHARGE ON SALES OF 2366 MILLION ORIGINALLY THE COMPANY SAID IT EARNED 14 MILLION OR FOUR CENTS A SHARE ON SALES OF 2372 MILLION IN THE FIRST HALF THE COMPANY HAD A LOSS OF 467 MILLION OR 154 A SHARE AFTER AN ACCOUNTING CHARGE ON SALES OF 4559 MILLION ORIGINALLY THE COMPANY SAID IT HAD A LOSS OF 464 MILLION OR 153 A SHARE ON SALES OF 4582 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY THE COMPANY'S SHARES ROSE 625 CENTS TO 2150 9308040113 930804 TPI TO DISTRIBUTE TACO STOCK HOUSTON TPI DISSOLUTION CORP FORMERLY TWO PESOS INC SAID THE INITIAL DISTRIBUTION OF TACO CABANA INC STOCK TO TPI SHAREHOLDERS WILL BE AUG 5 THE DISTRIBUTION AT 010 SHARE OF TACO CABANA STOCK FOR EACH TPI SHARE IS RELATED TO THE SALE OF SUBSTANTIALLY ALL OF TWO PESOS' ASSETS TO TACO CABANA ON JUNE 30 TPI SAID IT ANTICIPATES FURTHER DISTRIBUTION LATER 9308040112 930804 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB OUTSIDE SEN BOB KERREY'S OFFICE LATE MONDAY THE SEVEN PHONE LINES WERE JAMMED BY CALLERS PLEADING WITH HIM TO VOTE EITHER FOR OR AGAINST PRESIDENT CLINTON'S DEFICITREDUCTION PLAN INSIDE THE NEBRASKA DEMOCRAT REMAINED COY AND UNCOMMITTED BUT AS THIS CRUCIAL FENCESITTER TALKS HE REVEALS AN EVEN BIGGER PROBLEM FOR DEMOCRATS AFTER SIX MONTHS OF BUDGET AND DEFICIT AGONY PRESIDENT CLINTON HAS FAILED TO GET HIS PARTY TO AGREE ON EVEN THE BASIC QUESTION OF WHETHER DEFICITCUTTING SHOULD BE ITS TOP PRIORITY DEFICIT REDUCTION BECAME AN END RATHER THAN A MEANS TO AN END TRY AS THE PRESIDENT DID TO CHANGE THAT SEN KERREY COMPLAINS WE LOST THE THEME OF MOVING FROM CONSUMPTION TO PRODUCTIVE INVESTMENTS YOU MAKE THAT THEME YOUR FOUNDATION AND REPUBLICANS WILL JOIN IF PRESIDENT CLINTON LOSES SEN KERREY'S VOTE THIS WEEK IT WON'T BE BECAUSE THE SENATOR DISLIKES SOME TAX PROVISION OR WANTS A PARTICULAR PROGRAM PUMPED UP RATHER IT WILL BE BECAUSE HE THINKS DEMOCRATS IN OBSESSING ABOUT THE DEFICIT HAVE LOST THEIR WAY SEN KERREY'S ARGUMENT IS PARTLY SELFSERVING OF COURSE HE IS AFTER ALL A MAN WHO LOST THE DEMOCRATIC PRESIDENTIAL NOMINATION TO BILL CLINTON AND ALONG THE WAY PROPOSED A HIGHLY AMBITIOUS NATIONAL HEALTHCARE PLAN THAT WOULD HAVE GOBBLED UP BILLIONS OF DOLLARS IN THE SAME TAX REVENUE THAT THE CURRENT PLAN DEVOTES TO DEFICIT REDUCTION STILL SEN KERREY SHEDS LIGHT ON A PHILOSOPHICAL SCHISM THAT HELPS EXPLAIN WHY PRESIDENT CLINTON'S ATTEMPT TO PASS HIS ECONOMIC PLAN IS SUCH A TOUCHANDGO PROPOSITION ON ONE SIDE OF THE PARTY ARE THE DEFICIT HAWKS A COLLECTION OF CONSERVATIVE SOUTHERNERS LAWMAKERS PETRIFIED BY ROSS PEROT AND WALL STREET DENIZENS WHO HAVE LANDED IN WHITE HOUSE JOBS THEY THINK CUTTING THE DEFICIT HAS TO BE THE PARAMOUNT TASK EITHER BECAUSE THE FINANCIAL MARKETS WILL SINK THE ECONOMY IF IT ISN'T ACCOMPLISHED OR BECAUSE VOTERS HAVE COME TO SEE THE DEFICIT AS THE VERY SYMBOL OF GOVERNMENT INCOMPETENCE ON THE OTHER SIDE SITS AN AMALGAM OF LIBERALS AND POPULISTS WHO THINK DEMOCRATS ALONE SHOULDN'T SHOULDER THE BURDEN OF THE DEFICIT THEY WANT DEMOCRATS TO FOCUS ON THEIR TRADITIONAL AGENDA OF SOCIAL PROGRAMS IN THE CASE OF THE LIBERALS OR SMALLBUSINESS INCENTIVES IN THE CASE OF THE OTHERS THAT WILL PRODUCE TANGIBLE REWARDS FOR HIS PART SEN KERREY OFFERS THIS THESIS THE GOAL OF DEMOCRATIC POLICIES OUGHT TO BE TO CREATE JOBS TO DO THAT THOSE POLICIES NEED TO ENCOURAGE INVESTMENT AND SAVINGS BECAUSE SAVINGS ADD TO THE CAPITAL AVAILABLE FOR JOB CREATION CUTTING THE DEFICIT WILL HELP IN THE SAME WAY SO CUTS SHOULD BE SOLD AS A MEANS TO CREATE JOBS AND INVESTMENTS BUT IF THE GOVERNMENT IS GOING TO CONVINCE PEOPLE TO MOVE AWAY FROM CONSUMPTION TOWARD INVESTMENTS IT MUST SHOW THAT IT TOO IS MOVING AWAY FROM CONSUMING AND THE ONLY WAY TO DO THAT IS TO HAVE A MUCH MORE HIGHPROFILE EFFORT TO CUT GOVERNMENT SPENDING TOWARD THAT END SEN KERREY LAST WEEK PROPOSED THAT CONGRESS HOLD A SPECIAL SESSION DEVOTED ENTIRELY TO SPENDING CUTS THE IDEA CAUSED A RIPPLE OF INTEREST BUT HOUSE AND SENATE LEADERS DIDN'T BITE MORE IMPORTANT SEN KERREY SAYS HE'S PREPARED TO DO MUCH MORE TO LIMIT THE COST OF ENTITLEMENTS PROGRAMS THAT ARE THE PRIME EXAMPLE OF GOVERNMENT CONSUMPTION HE ARGUES FOR INSTANCE THAT THERE NOW IS A MAJORITY IN CONGRESS IN FAVOR OF A RECENT PROPOSAL TO PHASE IN A FIRM CAP ON THE GROWTH OF MEDICARE AND MEDICAID SPENDING CONGRESS HE ADDS COULD SIMULTANEOUSLY SHOW ITS WILLINGNESS TO SHARE THE SACRIFICE PERHAPS WE TAKE A SALARY CUT THIS SENTIMENT OF COURSE COULD RING HOLLOW TO THOSE WHO REMEMBER THAT SEN KERREY PROPOSED A BIG ENTITLEMENT PROGRAM OF HIS OWN LAST YEAR WITH HIS NATIONAL HEALTHCARE PROGRAM IT WOULD HAVE REPLACED MEDICARE MEDICAID AND THE CURRENT SYSTEM OF PAYROLLFINANCED HEALTH INSURANCE WITH A NEW UNIVERSAL HEALTH SYSTEM PAYROLL DEDUCTIONS FOR INSURANCE PREMIUMS WOULD HAVE BEEN ELIMINATED BUT THEIR PLACE WOULD HAVE BEEN TAKEN BY AMONG OTHER THINGS A 161 BILLION PAYROLL TAX TO HELP FINANCE THE NEW SYSTEM SEN KERREY ARGUES THAT HIS PLAN AND ITS COST CONTROLS ACTUALLY WOULD REIN IN THE GOVERNMENT'S HEALTHCARE TAB BUT IN ANY EVENT HIS BROADER RESERVATIONS SERVE TO SHOW THAT REGARDLESS OF HOW THIS WEEK'S VOTES TURN OUT PRESIDENT CLINTON STILL NEEDS TO FIND A PRINCIPLE TO GUIDE DEMOCRATIC ECONOMIC POLICY SEN KERREY'S ADVICE I'D GO BACK AND PULL OUT THE WORDS OF THE STATE OF THE UNION ON FEB 17 INVESTMENT AND GROWTH 9308040111 930804 INTERNATIONAL ALLIEDLYONS BUYS LIQUOR STORES LONDON UK FOOD AND BREWING GROUP ALLIEDLYONS PLC BOUGHT THE AUGUSTUS BARNETT LIQUORSTORE CHAIN FROM FELLOW UK BREWER BASS PLC FOR 40 MILLION 60 MILLION ALLIEDLYONS SAID THE PURCHASE INVOLVES SOME 550 AUGUSTUS BARNETT SHOPS ALLIEDLYONS ALREADY OWNS 960 OUTLETS UNDER THE VICTORIA WINE NAME AND SAID THE NEW ACQUISITIONS WILL GIVE IT A BOOST IN THE TAKEHOME DRINKS RETAILING SECTOR ALLIEDLYONS ADDED THAT SHOP CLOSURES AS A RESULT OF THE PURCHASE WERE UNLIKELY AND THAT IT HAD REACHED A SEPARATE AGREEMENT WITH BASS WHEREBY ALLIEDLYONS'S NEW NETWORK WILL BE SUPPLIED WITH A RANGE OF BASS BEER BRANDS 9308040110 930804 HILLENBRAND TO SELL LUGGAGE UNIT BATESVILLE IND HILLENBRAND INDUSTRIES INC SAID IT AGREED TO SELL ITS AMERICAN TOURISTER INC UNIT TO ASTRUM INTERNATIONAL CORP OF NEW YORK FOR 70 MILLION HILLENBRAND A MAKER OF CASKETS AND MEDICAL PRODUCTS SAID THE AGREEMENT IS SUBJECT TO REGULATORY APPROVAL AS REPORTED HILLENBRAND HIRED MORGAN STANLEY & CO LAST APRIL TO HELP IT DETERMINE ITS STRATEGIC OPTIONS FOR AMERICAN TOURISTER A MAKER OF LUGGAGE AND BRIEFCASES ASTRUM FORMERLY KNOWN AS EII HOLDINGS INC OWNS CULLIGAN WATER PURIFICATION SYSTEMS SAMSONITE LUGGAGE AND THE MAKER OF BOTANY 500 MEN'S SUITS 9308040109 930804 AMBER'S SAMESTORE SALES FALL DALLAS AMBER'S STORES INC SAID SALES AT STORES OPEN AT LEAST A YEAR FELL 51 IN JULY FROM A YEAR EARLIER THE ARTSANDCRAFTS RETAILER SAID TOTAL SALES FOR THE MONTH INCREASED 61 TO 42 MILLION FROM 26 MILLION A YEAR EARLIER OVER THE PAST YEAR AMBER'S OPENED 14 STORES FOR A TOTAL OF 30 SAMESTORE SALES FOR THE QUARTER ENDED JULY 31 DROPPED 36 WHILE TOTAL SALES FOR THE PERIOD INCREASED 58 TO 113 MILLION FROM 72 MILLION DURING THE SAME PERIOD LAST YEAR THE COMPANY ATTRIBUTED THE DROP IN SAMESTORE SALES TO THE ELIMINATION OF A JULY ADVERTISING CIRCULAR 9308040108 930804 WHO'S NEWS CABLEVISION SYSTEMS CORP CABLEVISION SYSTEMS CORP WOODBURY NY JOSHUA SAPAN WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF RAINBOW PROGRAMMING HOLDINGS INC A UNIT OF THIS CABLE TELEVISION SYSTEM OPERATOR MR SAPAN 42 YEARS OLD SUCCEEDS SHARON L PATRICK WHO RECENTLY RESIGNED MR SAPAN HAD BEEN PRESIDENT AND CHIEF OPERATING OFFICER OF RAINBOW'S NATIONAL PROGRAM SERVICES RAINBOW PROGRAMMING MANAGES 14 PROGRAMMING NETWORKS INCLUDING AMERICAN MOVIE CLASSICS AND THE BRAVO CULTURAL ARTS CHANNEL 9308040107 930804 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE US MOVED TO EASE TENSIONS WITH TAIWAN OVER ITS PROTECTION OF INTELLECTUAL PROPERTY RIGHTS DECLARING ITS SATISFACTION WITH TAIPEI'S EFFORTS TO IMPROVE ENFORCEMENT AND PASS LAWS TO QUASH THE ISLAND'S STATUS AS A HAVEN FOR INDUSTRIAL PIRACY SINCE EARLY LAST YEAR THE US HAS PRESSURED TAIWAN TO BEEF UP ITS LAX PROTECTION OF COPYRIGHTS TRADEMARKS AND PATENTS AND EVEN RAISED THE PROSPECT OF IMPOSING TRADE SANCTIONS IN APRIL THE US URGED TAIWAN TO IMPLEMENT WITHIN THREE MONTHS AN ACTION PLAN FOR INTELLECTUAL PROPERTY RIGHTS AND IT PUT TAIWAN ON ITS PRIORITY WATCH LIST THE SECONDHIGHEST CATEGORY FOR VIOLATORS THOUGH TAIWAN REMAINS ON THAT LIST THE US TRADE REPRESENTATIVE'S OFFICE CITED CONSIDERABLE IMPROVEMENTS SUCH AS TAIWAN'S PASSAGE OF A LAW TO LEGALIZE THE UNDERGROUND CABLETV INDUSTRY AND REDUCE ILLEGAL BROADCASTS OF FOREIGN FILMS AS WELL AS BETTER TRADEMARK PROTECTION AND POLICE CRACKDOWNS THE US DIDN'T PUBLICLY DEMAND FURTHER ACTION MORE THAN TWOTHIRDS OF RUSSIA'S PRE1993 RUBLE BANKNOTES HAVE BEEN EXCHANGED FOR NEW BILLS UNDER A CENTRAL BANK ORDER LAST WEEK THAT CAUSED A CURRENCY PANIC UNTIL THE SWAP PERIOD WAS EXTENDED TO AUG 31 INDIVIDUALS HAVE TURNED IN MORE THAN 720 BILLION RUBLES IN OLD NOTES OF A TOTAL EXCEEDING 1 TRILLION RUBLES THIS EXCLUDES BLACKMARKET EXCHANGES IN WHICH PRIVATE RUBLE DEALERS HAVE MADE A KILLING BY BUYING OLD NOTES AT LOW RATES AND EXCHANGING THEM FOR NEW BILLS IN EXCESS OF THE OFFICIAL LIMIT 100000 RUBLES A PERSON THE RUBLE LAST TRADED AT 987 TO THE US DOLLAR BULGARIA PROPOSED TO EXPAND ITS PRIVATIZATION PROGRAM BY ISSUING BONDS THAT CITIZENS COULD INVEST IN STATEOWNED COMPANIES THE PROGRAM WOULD PARALLEL EFFORTS UNDER WAY TO SELL OFF SOME STATE ENTERPRISES THROUGH STOCK OWNERSHIP THE BOND PLAN IS TO BE INTRODUCED IN PARLIAMENT NEXT MONTH PRELIMINARY PROPOSALS CALL FOR THE STATE TO OFFER A 1100 CREDIT TO EVERY BULGARIAN OVER AGE 20 IN PRIVATIZING ABOUT 500 FIRMS VALUED AT 66 BILLION A 137 BILLION AIRPORT NEAR OSAKA JAPAN'S SECONDLARGEST CITY WAS RESCHEDULED TO OPEN BY SEPT 15 1994 THE KANSAI INTERNATIONAL AIRPORT PROJECT ON A MANMADE ISLAND IN OSAKA BAY WHICH WAS TO HAVE BEEN COMPLETED LAST SPRING WAS DELAYED BY THE ISLAND'S COLLAPSE INTO THE SEA THE AIRPORT TO BE THE FIRST IN JAPAN OPEN ROUND THE CLOCK WILL INITIALLY ACCOMMODATE 90 INTERNATIONAL AND 70 DOMESTIC FLIGHTS A DAY WITH ROOM FOR EXPANSION CHINA'S FIRSTHALF AUTO PRODUCTION JUMPED 44 TO A RECORD 618900 UNITS FROM A YEAR EARLIER ON TRACK TOWARD THE 1993 TARGET OF 11 MILLION VEHICLES CHINA HOPES TO TRIPLE THAT ANNUAL OUTPUT WITHIN A DECADE THE INDUSTRY ALSO MADE A RECORD 223 BILLION OF AUTO PARTS IN THE LATEST SIX MONTHS IN THE SAME PERIOD CHINA'S POWER PRODUCTION ROSE 10 TO 391 BILLION KILOWATTHOURS OR 49 OF 1993 PROJECTED OUTPUT BUT INSUFFICIENT ENERGY IS HOBBLING DEVELOPMENT FORCING FACTORY SHUTDOWNS FOR DAYS OR WEEKS AT A TIME CHINA SPENT 262 BILLION ON POWER PROJECTS IN THE HALF RADIOACTIVE WASTE SPILLED AT A RUSSIAN NUCLEAR WEAPONS PLANT IN THE URAL MOUNTAINS THE SECOND ACCIDENT THERE IN 2 1/2 WEEKS THE INCIDENT DIDN'T SERIOUSLY HARM WORKERS AT THE MAYAK PLANT NEAR CHELYABINSK 930 MILES EAST OF MOSCOW THE ITARTASS NEWS AGENCY SAID AND RADIATION DOSES WERE WITHIN LIMITS THE ATOMIC ENERGY MINISTRY SAID A PIPE DEPRESSURIZED AND LEAKED RADIOACTIVE PULP CONTAMINATING 120 SQUARE YARDS OF THE FACTORY'S GROUNDS ON JULY 17 A CHEMICAL EXPLOSION AT THE PLUTONIUMEXTRACTION PLANT SPEWED RADIOACTIVE ISOTOPES INTO THE AIR JAPAN'S CONSTRUCTION MINISTRY WILL INTRODUCE A COMPETITIVE BIDDING SYSTEM FOR PUBLICWORKS PROJECTS ON A TRIAL BASIS IN RESPONSE TO INDUSTRY BRIBERY SCANDALS AN ADVISORY PANEL BEGAN A REVIEW OF A MORE OPEN AND COMPETITIVE SYSTEM WITH BIDDING PROCEDURES FOR CONTRACTORS THE AGENCY MIGHT PROCEED WITHOUT WAITING FOR THE GROUP'S RECOMMENDATIONS MEANWHILE THE MINISTRY WILL TEMPORARILY PROHIBIT ITS SENIOR BUREAUCRATS WHO LEAVE THE AGENCY FROM GETTING JOBS WITH BIG AND MEDIUMSIZED CONSTRUCTION COMPANIES THE DECISION FOLLOWED A PUBLIC OUTCRY ABOUT COZY TIES BETWEEN MINISTRY OFFICIALS AND BUILDERS IN THE WAKE OF THE CONSTRUCTION BRIBERY SCANDALS THE CRITICISM HAS CENTERED ON A PRACTICE KNOWN AS AMAKUDARI OR DESCENT FROM HEAVEN IN WHICH TOP CIVIL SERVANTS ARE GIVEN HIGHLY PAID PRIVATESECTOR JOBS BECAUSE THEIR INFLUENCE CAN HELP THE EMPLOYERS THE MINISTRY ALSO WILL REGULATE DEPARTURES OF JUNIOR OFFICIALS TO DO BUSINESS IN PUBLICWORK PROJECTS AT CONTRACTING FIRMS JAPAN'S PERSONNEL AGENCY RECOMMENDED AN AVERAGE 192 PAY RAISE FOR GOVERNMENT EMPLOYEES IN THE YEAR STARTING NEXT APRIL CITING SMALLER PRIVATESECTOR SALARY BOOSTS AMID THE ECONOMIC SLUMP IF APPROVED THE INCREASE WOULD BE THE SMALLEST FOR CIVIL SERVANTS IN SEVEN YEARS POLAND WILL STOP ISSUING LICENSES TO FOREIGN BANKS FOR INDEPENDENT OPERATIONS IN THE COUNTRY BUT FOREIGNERS MAY STILL ACQUIRE AND HOLD MAJORITY INTERESTS IN BANKS ALREADY OPERATING IN POLAND 9308040106 930804 INTERNATIONAL FRANCE GERMANY TRY TO DEFUSE TENSIONS AND RESTORE RELATIONS BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS FRANCE AND GERMANY AT PAINS TO DEFUSE TENSIONS FOLLOWING EUROPE'S LATEST CURRENCY CRISIS ARE INSISTING THAT THEIR MUTUAL RELATIONS AND ECONOMIC STRATEGIES REMAIN UNCHANGED FOLLOWING A PREVIOUSLY SCHEDULED MEETING IN PARIS YESTERDAY SENIOR GOVERNMENT AND MONETARY OFFICIALS OF BOTH NATIONS SAID FRANCE AND GERMANY WILL PRESS AHEAD WITH THE GOAL OF A EUROPEAN MONETARY UNION AND WILL CONTINUE CLOSE COORDINATION OF THEIR NATIONAL ECONOMIC POLICIES THEY ARE ALSO SETTING UP A TASK FORCE COMPRISING LEADING BUSINESS EXECUTIVES OF BOTH NATIONS TO EXAMINE THE VEXING QUESTION OF WANING EUROPEAN COMPETITIVENESS THEO WAIGEL GERMANY'S ECONOMICS MINISTER SAID THAT THE LATEST CURRENCY TURMOIL WHICH EFFECTIVELY DECOUPLED THE FRENCH FRANC FROM THE GERMAN MARK WOULDN'T LEAD EITHER TO A RACE TO DEVALUE OR TO PROTECTIONISM HE ADDED THE AIMS OF MAASTRICHT STILL APPLY UNCHANGED MR WAIGEL WAS REFERRING TO THE EUROPEAN COMMUNITY TREATY THAT LAID DOWN THE STEPS TOWARD A CURRENCY UNION BY THE END OF THE DECADE AND WHICH IS NOW IN DOUBT EVEN WITHOUT THE STRICT DISCIPLINE OF A FIXED EXCHANGE RATE SYSTEM MR WAIGEL SAID EUROPEAN COMMUNITY NATIONS WOULD CONTINUE TO ENSURE THEIR ECONOMIES GROW CLOSER TOGETHER FRANCE'S ECONOMY MINISTER EDMOND ALPHANDERY GAVE A SIMILAR UPBEAT ASSESSMENT STRESSING THAT YESTERDAY'S TALKS HAD BEEN HELD IN A PARTICULARLY WARM ATMOSPHERE AND AS IF TO UNDERSCORE THE COOPERATIVE MOOD GERMANY'S CENTRAL BANK THE BUNDESBANK GAVE SIGNS IT MIGHT BE WILLING TO EASE INTEREST RATES IN THE FUTURE AND INDEED IT YESTERDAY CUT ITS SECURITIES REPURCHASE RATE FOR 14DAY AGREEMENTS TO 68 FROM 7 HELMUT SCHLESINGER THE BUNDESBANK PRESIDENT WHO ALSO ATTENDED THE PARIS TALKS TOLD REPORTERS THAT HE DIDN'T THINK GERMANY WOULD SUFFER TOO MUCH FROM THE CONSEQUENCES OF THE LATEST CRISIS NOTING THAT THE GERMAN MARK HAD APPRECIATED BY ONLY 07 AGAINST A BASKET OF OTHER MAJOR CURRENCIES WHILE SOME OF THE REASSURING TALK PARTICULARLY OF KEEPING TO THE GOAL OF A MONETARY UNION MAY BE WISHFUL THINKING OFFICIALS FROM BOTH NATIONS PRIVATELY ACKNOWLEDGE THAT MANY SOOTHING WORDS AND DEEDS ARE NEEDED TO PATCH UP THE STRAIN IN FRANCOGERMAN RELATIONS FRANCE WHICH HAD MADE ITS LINK TO THE GERMAN CURRENCY A MAJOR POLITICAL PRIORITY WAS DEEPLY WOUNDED BY THE BUNDESBANK'S REFUSAL TO CUT AN IMPORTANT INTEREST RATE LAST WEEK AND SAVE THE OLD EUROPEAN MONETARY SYSTEM IN A FRONTPAGE EDITORIAL YESTERDAY GERMANY'S FRANKFURTER ALLGEMEINE ZEITUNG PREDICTED THAT GERMANY WOULD HAVE TO PUT UP WITH WEEKS OF FINGERPOINTING BY THE ANGRY FRENCH AND NOTED WEARILY THAT PARIS WILL NOW DEMAND NEW PROOF OF BONN'S LOYALTY AND EUROPEAN SOLIDARITY 9308040105 930804 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT AMERICAN EXPRESS CREDIT CORP 100 MILLION OF STEPUP NOTES DUE AUG 10 2005 PRICED AT PAR TO YIELD 625 FOR THE FIRST SEVEN YEARS ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR SEVEN YEARS WERE PRICED AT A SPREAD OF 785 BASIS POINTS ABOVE TREASURYS IF THE NOTES ARE NOT CALLED THE COUPON WILL STEP UP TO 745 FOR THE REMAINING LIFE OF THE NOTES RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS AMERICAN EXPRESS CREDIT IS A UNIT OF AMERICAN EXPRESS CO ARIZONA PUBLIC SERVICE CO 100 MILLION OF FIRST MORTGAGE BONDS DUE AUG 1 2023 PRICED AS 725S AT 98199 TO YIELD 74 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 87 BASIS POINTS ABOVE COMPARABLE US TREASURYS RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP ARIZONA PUBLIC SERVICE IS A UNIT OF PINNACLE WEST CAPITAL CORP NEWS AMERICA HOLDINGS INC 250 MILLION OF 825 SENIOR DEBENTURES DUE AUGUST 2018 SOLD THROUGH MERRILL LYNCH & CO WHICH ACTED AS LEAD MANAGER AND THROUGH CITICORP SECURITIES MARKETS INC AND JP MORGAN SECURITIES THE PROCEEDS WILL BE USED TO REPAY CERTAIN BANK DEBT AND PUBLIC DEBT THE DEBENTURES ARE EXPECTED TO BE RATED TRIPLEBMINUS BY S&P AND BA2 BY MOODY'S NEWS AMERICA HOLDINGS IS A UNIT OF NEWS CORP NORWEST FINANCIAL INC 150 MILLION OF NOTES DUE AUG 1 2003 PRICED AS 6125S AT 99226 TO YIELD 623 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 43 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NORWEST FINANCIAL IS A UNIT OF NORWEST CORP MID OCEAN LTD INITIAL OFFERING OF 95 MILLION COMMON SHARES PRICED AT 2450 APIECE THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES ILLINOIS 175 MILLION VARIOUSPURPOSE GENERALOBLIGATION BONDS SERIES OF AUGUST 1993 APPARENTLY WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 5348 YIELDS FOR REOFFERED BONDS RANGE FROM 38 IN 1996 TO 569 IN 2018 MOODY'S HAS RATED THE ISSUE DOUBLEA AND S&P HAS ASSIGNED A DOUBLEAMINUS RATING NEW YORK CITY 11 BILLION VARIOUS REVENUE ANTICIPATION NOTES WON BY NUMEROUS FIRMS THE OFFERING INCLUDES 400 MILLION SERIES A NOTES WHICH ARE DUE APRIL 15 1994 AND 700 MILLION SERIES B NOTES WHICH ARE DUE JUNE 30 1994 MOODY'S HAS RATED THE NOTES MIG1 AND S&P HAS ASSIGNED AN SP1 RATING FOLLOWING ARE THE RESULTS OF THE BIDDING FOR THE 400 MILLION SERIES A NOTES A FIRST BOSTON CORP GROUP WON 75 MILLION OF THE NOTES 50 MILLION WITH A BID SETTING THE NET INTEREST COST AT 28328 AND 25 MILLION WITH A NET INTEREST COST OF 2803 THE NOTES HAVE A 35 COUPON AND ARE PRICED TO YIELD 275 A GOLDMAN SACHS & CO GROUP WON 225 MILLION OF THE NOTES 200 MILLION WITH A NET INTEREST COST OF 2819 AND 25 MILLION WITH A NET INTEREST COST OF 2837 THE NOTES HAVE A 325 COUPON AND ARE PRICED TO YIELD 275 BT SECURITIES CORP WON 50 MILLION OF THE NOTES WITH A NET INTEREST COST OF 282 THE NOTES HAVE A 325 COUPON AND ARE PRICED TO YIELD 275 JP MORGAN SECURITIES INC WON 25 MILLION OF THE NOTES WITH A NET INTEREST COST OF 283 THE NOTES HAVE A 35 COUPON AND ARE PRICED TO YIELD 275 BEAR STEARNS & CO WON 25 MILLION OF THE NOTES WITH A NET INTEREST COST OF 2832 THE NOTES HAVE A 35 COUPON BUT AREN'T FORMALLY REOFFERED TO INVESTORS FOLLOWING ARE THE RESULTS OF THE BIDDING FOR 700 MILLION SERIES B REVENUE ANTICIPATION NOTES WHICH ARE DUE JUNE 30 1994 A GOLDMAN SACHS & CO GROUP WON 650 MILLION OF THE NOTES 350 MILLION WITH A NET INTEREST COST OF 2993 AND 300 MILLION WITH A NET INTEREST COST OF 3018 THE NOTES HAVE A 35 COUPON AND ARE PRICED TO YIELD 29 CITICORP SECURITIES MARKETS INC WON 25 MILLION OF THE NOTES WITH A NET INTEREST COST OF 2994 THE NOTES HAVE A 35 COUPON AND ARE PRICED TO YIELD 29 FIRST ALBANY CORP WON 25 MILLION OF THE NOTES WITH A NET INTEREST COST OF 3014 THE NOTES HAVE A 35 COUPON AND ARE PRICED TO YIELD 29 NEW YORK CITY HOUSING DEVELOPMENT CORP 130 MILLION 1993 SERIES A AND SERIES B MULTIFAMILY HOUSING REVENUE BONDS PRICED BY A BEAR STEARNS & CO GROUP INCLUDED IN THE ISSUE ARE 15 MILLION 1993 SERIES A BONDS AND 115 MILLION 1993 SERIES B BONDS BOTH SETS OF SECURITIES HAVE BEEN PRICED TO YIELD FROM 275 IN 1994 TO 585 IN 2026 BOTH MOODY'S AND S&P ARE EXPECTED TO RATE THE ISSUE DOUBLEA PENNSYLVANIA HOUSING FINANCE AGENCY 208 MILLION OF ISSUE 1993 RENTAL HOUSING REFUNDING BONDS PRICED BY AN ALEX BROWN & SONS INC GROUP YIELDS RANGE FROM 35 IN 1995 TO 587 IN 2022 THE BONDS WHICH ARE COLLATERALIZED BY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION HAVE BEEN RATED TRIPLEA BY S&P A TRIPLEA RATING IS ALSO EXPECTED FROM MOODY'S PHILADELPHIA 12 BILLION SERIES 1993 WATER AND WASTEWATER REVENUE BONDS PRICED BY A SMITH BARNEY SHEARSON GROUP THE ISSUE INCLUDES NEARLY 11 BILLION OF FIXEDRATE CURRENTINTEREST BONDS THE REOFFERED SECURITIES IN THAT GROUPING ARE PRICED TO YIELD FROM 41 IN 1995 TO 592 IN 2023 ALSO INCLUDED ARE 72 MILLION OF FLOATERS AND INVERSE FLOATERS WITH FINAL MATURITIES IN 2004 AND 2012 WHICH AREN'T FORMALLY REOFFERED TO INVESTORS FIXEDRATE BONDS DUE IN 19992001 ARE INSURED BY FINANCIAL SECURITY ASSURANCE WHILE SECURITIES DUE IN 20032005 AND 20102012 ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO CAPITAL GUARANTY INSURANCE CO IS INSURING FIXEDRATE BONDS DUE IN 20142016 AND THE MUNICIPAL BOND INVESTORS ASSURANCE CORP IS INSURING FIXEDRATE BONDS DUE IN 20172019 AND 2023 ALL OF THOSE INSURED BONDS CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P THE UNINSURED SECURITIES HAVE RATINGS OF BAA FROM MOODY'S AND TRIPLEB FROM BOTH S&P AND FITCH INVESTORS SERVICE INC PHILADELPHIA SCHOOL DISTRICT 190 MILLION OF SERIES 199394 TAX AND REVENUE ANTICIPATION NOTES OFFERED THROUGH A MERRILL LYNCH & CO GROUP THE MATURITY DATE FOR THE SECURITIES IS JUNE 30 1994 THE NOTES HAVE A 3625 COUPON AND ARE PRICED AT 10043 TO YIELD 315 AT MATURITY MOODY'S HAS RATED THE OFFERING MIG1 AND S&P HAS ASSIGNED AN SP1 RATING SACRAMENTO CALIF MUNICIPAL UTILITY DISTRICT 1875 MILLION TAXABLE 1993 SERIES F REVENUE REFUNDING BONDS PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 415 IN 1994 TO 67 IN 2004 THE BONDS HAVE BEEN RATED SINGLEA BY MOODY'S AND SINGLEAMINUS BY BOTH S&P AND FITCH FEDERAL HOME LOAN MORTGAGE CORP 150 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES G019 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION GINNIE MAE 5 ADJUSTABLERATEMORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 575 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 358 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 150 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1993G30 IS BACKED BY STRIPS TRUST 241 WHICH IS BACKED IN TURN BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 85 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 334 MONTHS BANPAIS SA CAYMAN ISLANDS BRANCH MEXICAN PARENT 100 MILLION OF 825 EUROBONDS DUE AUG 18 1995 AT ISSUE AND REOFFER PRICE 9991 VIA INTERNATIONALE NEDERLANDEN BANK NV BONDS YIELD 83 SEMIANNUAL A MARGIN OF 415 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE FEES 0875 POINT INTEREST PAYABLE SEMIANNUALLY FINANCE FOR DANISH INDUSTRY AS DANISH AGENCY 350 MILLION DANISH KRONER OF 675 EUROBONDS DUE AUG 31 1998 AT ISSUE PRICE 101875 VIA MORGAN STANLEY INTERNATIONAL BONDS YIELD 675 ANNUAL AT PAR BREAKEVEN PRICE FOR COMANAGERS FEES 1875 POINTS FOKKER NV NETHERLANDS 150 MILLION MARKS OF 65 EUROBONDS DUE AUG 26 1996 AT ISSUE PRICE 1015 VIA DRESDNER BANK AG BONDS PRICED AT 68 BASIS POINTS ABOVE EQUIVALENT GERMAN BUND FEES 15 POINTS MINUS 03POINT LISTING FEE LESS 0075 POINT FOR LEAD MANAGER FORD MOTOR CREDIT CO US PARENT 300 MILLION OF SENIOR UNSECURED FLOATINGRATE EURONOTES DUE AUG 26 1998 AT ISSUE AND REOFFER PRICE 9977 VIA MORGAN STANLEY INTERNATIONAL INTEREST PAYABLE QUARTERLY AT THREEMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS PLUS 025 POINT FEES 03 POINT INTERAMERICAN DEVELOPMENT BANK SUPRANATIONAL 500 MILLION OF 6 EUROBONDS DUE AUG 19 2003 AT ISSUE AND REOFFER PRICE 9922 VIA MERRILL LYNCH INTERNATIONAL LTD BONDS YIELD 611 A MARGIN OF 20 BASIS POINTS OVER COMPARABLE US TREASURY NOTE FEES 0325 POINT NATIONAL POWER PLC UK 250 MILLION OF 625 CONVERTIBLE SUBORDINATED EUROBONDS DUE SEPT 23 2008 AT PAR VIA CREDIT SUISSE FIRST BOSTON LTD BONDS CONVERTIBLE FROM OCT 5 1993 TO SEPT 16 2008 INTO ORDINARY SHARES OF COMPANY AT CONVERSION PRICE 433 PENCE A PREMIUM OF 1896 OVER YESTERDAY'S MIDMARKET PRICE BONDS CALLABLE AT PAR FROM OCT 21 1998 CALLABLE AT ANY TIME IF 85 OF BONDS ALREADY CONVERTED FEES 25 POINTS INTEREST PAYABLE SEMIANNUALLY NICHIREI CORP JAPAN 10 BILLION YEN OF 5 EUROBONDS DUE NOV 17 2000 AT ISSUE AND REOFFER PRICE 1001 VIA FUJI INTERNATIONAL FINANCE PLC BONDS YIELD 498 FEES 035 POINT TRANS COSMOS JAPAN 100 MILLION OF 15 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE AUG 19 1997 AT PAR VIA NIKKO EUROPE GUARANTOR SAKURA BANK WARRANTS EXERCISABLE FROM SEPT 2 1993 TO AUG 12 1997 TO BUY ORDINARY SHARES IN COMPANY AT TERMS TO BE FIXED AUG 10 FEES 225 POINTS LESS 02 POINT FOR LEAD MANAGER 9308040104 930804 TECHNOLOGY WELLCOMEDUPONT MERCK PACT RESEARCH TRIANGLE PARK NC BURROUGHS WELLCOME CO SAID IT AGREED WITH DUPONT MERCK PHARMACEUTICAL CO TO COPROMOTE BURROUGHS WELLCOME'S NEW EPILEPSY DRUG IN THE US THE DRUG LAMICTAL NOW MARKETED BY WELLCOME ABROAD IS AWAITING RELEASE FOR MARKETING BY THE FOOD AND DRUG ADMINISTRATION AN FDA ADVISORY COMMITTEE RECOMMENDED ITS APPROVAL IN MARCH BURROUGHS WELLCOME IS A UNIT OF LONDONBASED WELLCOME PLC DUPONT MERCK IS A PARTNERSHIP BETWEEN DUPONT CO OF WILMINGTON DEL AND MERCK & CO OF WHITEHOUSE NJ 9308040102 930804 MARKETING & MEDIA SIMON & SCHUSTER'S PATTY DEPARTS POSEIDON TO FOLD BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SIMON & SCHUSTER SAID THAT ANN PATTY PUBLISHER OF POSEIDON PRESS FOR A DECADE HAS LEFT OVER PHILOSOPHICAL DIFFERENCES AND THAT THE UNIT WILL BE DISBANDED MS PATTY'S DEPARTURE FOLLOWS A RECENT DECISION BY SIMON & SCHUSTER A DIVISION OF PARAMOUNT COMMUNICATIONS INC TO CUT BACK THE NUMBER OF BOOKS PUBLISHED BY POSEIDON AND ITS EMPLOYEES SUCH BOUTIQUE DIVISIONS WITHIN PUBLISHERS CALLED IMPRINTS IN THE BUSINESS HAVE BEEN SHARPLY CURTAILED BY MAJOR PUBLISHERS IN RECENT YEARS SIMON & SCHUSTER HAS FOLDED OTHER IMPRINTS INCLUDING SUMMIT BOOKS IN THE '80S IMPRINTS COULD FLOURISH BUT IN THE '90S IT HAS PROVEN DIFFICULT FOR THEM TO BE CONSISTENTLY PROFITABLE SAID CAROLYN REIDY WHO TOOK OVER AS PUBLISHER FOR ADULT CONSUMER BOOKS AT SIMON & SCHUSTER ABOUT A YEAR AGO MS REIDY SAID THAT POSEIDON WHICH PUBLISHED ABOUT 20 BOOKS A YEAR WASN'T CONSISTENTLY MAKING MONEY AND THAT SHE HAD SUGGESTED IT BE FOLDED INTO SIMON & SCHUSTER WITH MS PATTY ALONE CONTINUING TO EDIT BOOKS UNDER THE POSEIDON NAME AND THE REST OF POSEIDON'S EDITORIAL STAFF BEING LET GO MS REIDY SAID SHE THOUGHT MS PATTY WAS AGREEABLE ABOUT THE NEW ARRANGEMENT BUT IT BECAME CLEAR SHE FOUND IT INTOLERABLE AND THE RESULT IS TODAY'S ANNOUNCEMENT THE PLAN TO FOLD POSEIDON INTO SIMON & SCHUSTER CAME THIS SPRING AT ABOUT THE SAME TIME THAT MS PATTY WAS INVOLVED IN A CONTROVERSY OVER THE ESTATE OF THE LATE AUTHOR VC ANDREWS DURING A TAX TRIAL THEN OVER THE HORROR WRITER'S ESTATE IT CAME OUT THAT MS PATTY RECEIVED PAYMENTS OF ABOUT 50000 FROM A GHOSTWRITER WHO CONTINUED TO WRITE UNDER THE NAME VC ANDREWS AFTER THE AUTHOR DIED MS PATTY WHO HAD BEEN MR ANDREWS'S EDITOR FOR YEARS CONTRIBUTED HEAVILY TO THOSE SUBSEQUENT BOOKS AND HAS SAID THE PAYMENTS WERE ALL APPROVED BY HER SUPERIORS THE VIEW OF SOME IN PUBLISHING IS THAT MS PATTY WHO'S WIDELY RESPECTED SHOULD HAVE BEEN SUPPORTED MORE STRONGLY BY SIMON & SCHUSTER DURING THE CONTROVERSY BY FOLDING HER IMPRINT INDUSTRY EXECUTIVES SAY SIMON & SCHUSTER CREATED AN IMPRESSION OF PUNISHMENT YESTERDAY JACK ROMANOS PRESIDENT OF CONSUMER BOOKS AT PARAMOUNT PUBLISHING SAID THERE IS ABSOLUTELY NO CONNECTION BETWEEN THE VC ANDREWS AFFAIR AND WHAT HAS HAPPENED SINCE WE SAID BEFORE WHEN THE CONTROVERSY HIT THAT WE STOOD BEHIND ANN MS PATTY 42 YEARS OLD ISSUED THE FOLLOWING STATEMENT YESTERDAY AFTER 15 YEARS OF MY LOYAL AND PROFITABLE SERVICE SIMON & SCHUSTER HAS DECIDED WE SHOULD PART COMPANY I AM VERY PROUD OF THE BOOKS I HAVE PUBLISHED THE AUTHORS I HAVE HAD THE PRIVILEGE TO WORK WITH OVER THE YEARS AND THE PEOPLE WHO HELPED ME TO CREATE POSEIDON PRESS IT IS A SAD DAY FOR SERIOUS COMMITTED ENTERPRISING PUBLISHING 9308040101 930804 WHO'S NEWS LILLIAN VERNON CORP LILLIAN VERNON CORP NEW ROCHELLE NY STEPHEN S MARKS WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS SPECIALTY CATALOG COMPANY MR MARKS 50 YEARS OLD MOST RECENTLY WAS A GENERAL MANAGER AT BRYLANE THE CATALOG UNIT OF LIMITED INC HE SUCCEEDS FRED HOCHBERG WHO RESIGNED IN FEBRUARY TO PURSUE OTHER INTERESTS 9308040100 930804 REVIEW & OUTLOOK EDITORIAL WHERE GRIDLOCK WORKED ANYONE WHO THINKS THAT'S THE ONLY WAY IT CAN HAPPEN THOUGH SHOULD TAKE A LOOK AT THE CURRENT TAX REVOLT IN MICHIGAN WHEN VOTERS THERE SPURNED THE MESS OF POTAGE THEIR POLITICIANS HAD COOKED UP THE TWO PARTIES STARTED TO COMPETE TO GIVE THEM WHAT THEY WANTED WITH BOTH REPUBLICAN GOVERNOR JOHN ENGLER AND HIS PROBABLE 1994 OPPONENT DEMOCRATIC STATE SENATOR DEBBIE STABENOW ON BOARD THE LEGISLATURE REPEALED ALL PROPERTY TAXES FOR LOCAL SCHOOLS MUCH POLITICAL TURMOIL LIES AHEAD BUT THE MOMENTUM CLEARLY IS FOR CHANGE THE MICHIGAN POLS HAD ORIGINALLY COOKED UP A BIPARTISAN DEAL TO PROVIDE PROPERTY TAX RELIEF BY JACKING UP THE SALES TAX UNLIKE THEIR WASHINGTON COUNTERPARTS WHO THINK THEY HAVE THE POWER TO REWRITE HISTORY BY MAKING TAXES RETROACTIVE THE MICHIGAN CREW HAD TO SUBMIT THEIR DEAL TO A REFERENDUM IN JUNE VOTERS TURNED THUMBS DOWN ELECTING FOR GRIDLOCK IN THE FURIOUS POLITICKING THAT INEVITABLY FOLLOWED SENATOR STABENOW CONCOCTED A PLOY TO MAKE THE GOVERNOR OPPOSE A TAX CUT SHE OFFERED A BILL TO REPEAL THE SCHOOL TAX ENTIRELY GOVERNOR ENGLER HAD THE ALACRITY TO ACCEPT PROMISING TO FINANCE SCHOOLS BY CUTTING ELSEWHERE FACED WITH THIS RADICAL IDEA THE LEGISLATURE DECIDED THE LESSER RISK WAS BEING BOLD AS THE STATE HOUSE VOTED FOR TAX REPEAL LOBBYISTS IN THE GALLERY HELD THEIR HEADS IN THEIR HANDS MICHIGAN'S PROPERTY TAXES WILL LIKELY GO FROM 30 ABOVE THE NATIONAL AVERAGE TO WELL BELOW IT OVER THE NEXT YEAR LAWMAKERS WILL REPLACE MUCH OF THE 65 BILLION THEY'VE CUT BUT ONLY AFTER THEY HAVE RESTRUCTURED STATE EDUCATION THE MICHIGAN EDUCATION ASSOCIATION CALLED THE TAX CUT ONE OF THE MOST DESTRUCTIVE PIECES OF LEGISLATION AFFECTING CHILDREN IN RECENT HISTORY BUT SENATOR STABENOW DISAGREES WITH HER LONGTIME ALLY SHE SAYS WE DID NOT CREATE A CRISIS WE CREATED A DEADLINE FOR SOLVING THE CRISIS SHE IS TALKING ABOUT REPLACING MUCH OF THE LOST REVENUE WITH INCREASES IN OTHER TAXES SHE ALSO MUSES ABOUT CREATING NEW REGIONAL AUTHORITIES TO RESTRUCTURE SCHOOLS MR ENGLER SAYS ELIMINATING LOCAL PROPERTY TAXES GIVES MICHIGAN A REAL CHANCE TO REFORM GOVERNMENT IN GOVERNMENT THE TAXING PART IS EASY HE SAYS IT'S SETTING THE RIGHT POLICIES AND THE RIGHT PRINCIPLES THAT'S HARD THIS ACTION FORCES US TO DO THAT GOVERNOR ENGLER SAYS HE WANTS TO CHANGE THE VERY DEFINITION OF PUBLIC SCHOOLING BUILDING A NEW EDUCATIONAL SYSTEM THAT RELIES ON CHOICE PARENTAL INVOLVEMENT AND ACCOUNTABILITY MICHIGAN'S CONSTITUTION BARS VOUCHERS THAT ALLOW PARENTS TO SELECT PRIVATE SCHOOLS BUT HE WILL AT LEAST PUSH FOR FULL STATEWIDE PUBLICSCHOOL CHOICE THE DEMAND FOR SCHOOLS THAT BREAK THE EDUCATIONAL MOLD IS ENORMOUS DETROIT'S FIRST SELFGOVERNING CHARTER SCHOOL OPENS NEXT MONTH WITH ROOM FOR 330 CHILDREN OVER 5200 APPLICATIONS WERE SENT IN GOVERNOR ENGLER IS CONVINCED BETTER EDUCATION DOESN'T REQUIRE MORE MONEY HE BELIEVES SCHOOLS CAN SHED MUCH OF THE BUREAUCRACY THAT SOAKS UP A MAJORITY OF EDUCATION DOLLARS MICHIGAN TEACHER SALARIES ARE HIGH GIVEN A 180DAY WORK YEAR HE WANTS TO BRING THEM INTO LINE WITH OTHER WORKERS HE WILL ALSO PUSH TO LET SCHOOLS HIRE PRIVATE FIRMS TO PROVIDE NONTEACHING SERVICES WHATEVER THE EVENTUAL OUTCOME THE MOLD IS BROKEN AND CHANGE IS IN THE AIR THIS IS CLEARLY WHAT THE PUBLIC WANTS POLLS SHOW AN UNSATISFIED DEMAND FOR RADICAL POLITICAL REFORM IT'S TOO BAD VOTERS DON'T GET THE CHANCE TO EXPRESS THEMSELVES IN REFERENDUMS NATIONALLY AS THEY DO IN MICHIGAN LAST YEAR IN CALIFORNIA NOT SO INCIDENTALLY VOTERS TOOK UP A SOAKTHERICH TAX INITIATIVE MUCH LIKE THE SON OF 1990 AND HOOTED IT DOWN BY 58 TO 42 WE VERY MUCH DOUBT THAT VOTERS BELIEVE WHAT'S NOW BEFORE CONGRESS WILL WORK FOR THAT MATTER MEMBERS OF CONGRESS DON'T BELIEVE IT EITHER THEY JUST GO ALONG BECAUSE THEY DON'T TRUST THEMSELVES THEY WOULD DO BETTER TO FOLLOW THE MICHIGAN EXAMPLE CALL THEIR OWN BLUFF AND GET ON WITH THE TOUGH DECISIONS OF HOW TO PARE GOVERNMENT BACK TO WHAT IT CAN ACTUALLY DO 9308040099 930804 CLEAR CHANNEL PLANS PURCHASE SAN ANTONIO CLEAR CHANNEL COMMUNICATIONS INC SAID IT SIGNED A LETTER OF INTENT TO PURCHASE A MINNEAPOLIS TELEVISION STATION FROM NATIONWIDE COMMUNICATIONS INC FOR APPROXIMATELY 36 MILLION THE DEAL FOR STATION KITN A FOX NETWORK AFFILIATE IS SUBJECT TO THE SIGNING OF A DEFINITIVE AGREEMENT AND FEDERAL COMMUNICATIONS COMMISSION APPROVAL NATIONWIDE COMMUNICATIONS IS A SUBSIDIARY OF NATIONWIDE MUTUAL INSURANCE CO OF COLUMBUS OHIO 9308040098 930804 REVIEW & OUTLOOK EDITORIAL ASIDES THE FIRST CUT GETTING READY TO VOTE ON MAKING TAXES RETROACTIVE TO SCRAPE THE BOTTOM OF THE REVENUE BARREL THE SENATE YESTERDAY VOTED A BILLION OR TWO IN ITS VERSION OF THE NATIONAL SERVICE BILL PROPOSED BY THE ADMINISTRATION AND ALREADY PASSED BY THE HOUSE AROUND 50000 LUCKY COLLEGEBOUND YOUTHS WOULD GET SOME 15000 EACH IN TUITION GRANTS AND LIVING ALLOWANCES FOR PUBLIC SERVICE JOBS THAT IF HISTORY IS ANY GUIDE WILL BE MOSTLY MAKEWORK OUR BELTWAY PRODIGIES HAVEN'T FIGURED OUT THAT THE FIRST THING YOU DO IN REACHING A BUDGET IS TO STOP BUYING YOURSELF NEW TOYS 9308040097 930804 MARKETING & MEDIA ADVERTISING M&M'S SPOT SEEKS TO SWEETEN POPULARITY WITH YOUNGER CROWD BY KEVIN GOLDMAN FOR ALMOST FOUR DECADES TELEVISION AUDIENCES WERE ACCUSTOMED TO THOSE CUTE ANIMATED M&M'S PLAIN AND PEANUT CHARACTERS COMPLETE WITH TINY ARMS AND LEGS DIVING INTO A SWIMMING POOL OF CHOCOLATE AND EMERGING TO HAVE THEIR OUTER SHELLS BAKED BY THE SUN NOW M&M'S ARE DIVING INTO UNCHARTED WATERS FOR THE FIRST TIME THE M&M/MARS BRAND AND ITS AD AGENCY OF 39 YEARS NOW KNOWN AS BACKER SPIELVOGEL BATES HAVE PRODUCED A COMMERCIAL SPECIFICALLY TARGETING THE MOST FICKLE OF ALL CANDYCRUNCHERS TEENS AND YOUNG ADULTS M&M/MARS IS A UNIT OF MARS THE SPOT WHICH FIRST AIRED LAST NIGHT ON THE ABC TEEN SITUATION COMEDY WHERE I LIVE FEATURES FRENETIC JUMPY EDITING NOT UNLIKE A ROCK VIDEO INSTEAD OF THE CHIRPY M&M'S DUO THAT HAS STARRED IN MOST SPOTS SINCE 1954 THE AD INCLUDES SHOTS OF A TEEN SINKING INTO AN EASY CHAIR WHILE LISTENING TO HEADPHONES A BOOKWORM STUDYING IN A LIBRARY A STATUESQUE WOMAN NEAR A MOTORCYCLE AND KIDS PLAYING ON A TIRE SWING A NEW PERCUSSIVE JINGLE BECKONS OPEN YOUR HAND AND SMILE WHILE THE OLD STANDBY MELTS IN YOUR MOUTH NOT IN YOUR HAND IS REDUCED TO A QUICK SHOT OF ONSCREEN GRAPHICS M&M'S DEPARTURE FROM THE NORM AS ONE M&M/MARS EXECUTIVE PUTS IT COMES AS THE VENERABLE BRAND FACES CHALLENGES FROM RELATIVELY NEW NONCHOCOLATE BITESIZE CANDIES THE BRAND IS THE NO 1 PRODUCT IN THE 16 BILLION CANDY MARKET EXCLUDING CHEWING GUM AND BUBBLE GUM YET AMONG YOUNGER AGE GROUPS M&M'S POPULARITY MELTS INTO A MERELY TOPFIVE RANKING FOR EXAMPLE AMONG BOYS AGED EIGHT TO 12YEARSOLD THE FAVORITE CANDY IS SNICKERS ANOTHER M&M/MARS PRODUCT WHILE M&M'S MUST SETTLE FOR ALSORAN STATUS ALONG WITH RELATIVE NEWCOMERS SOUR PATCH KIDS AND GUMMI WORMS THE NEWER PRODUCTS AREN'T AS HEAVY AS CHOCOLATE AND STILL PACK A POWERFUL SUGAR HIGH AMONG GIRLS AGED EIGHT TO 12 M&M'S DOESN'T EVEN RATE IN THE TOP FIVE ACCORDING TO RESEARCH COMPLETED LAST MONTH BY THE ZANDL GROUP WHICH CONSULTS COMPANIES ON MARKETING TO THE YOUNG KIDS LOVE BITESIZE CANDIES BECAUSE THEY'RE FUN TO EAT AND THEY'RE INTERACTIVE BECAUSE YOU CAN SHARE THEM SAYS JOAN STEUER PRESIDENT OF CHOCOLATE MARKETING WHICH TRACKS THE CHOCOLATE INDUSTRY AND INCREASINGLY YOUNGSTERS ARE LOVING M&M'S COMPETITORS REESE'S PIECES THE PEANUT BUTTERCENTERED CANDIES CONSUMED BY THE SPACE ALIEN IN THE HIT MOVIE ET TOPPED A SURVEY OF WOMEN 18 TO 24 YEARS OLD IN THE ZANDL SURVEY SNICKERS RANKED NO 2 AND M&M'S NO 3 AMONG MEN IN THAT CATEGORY M&M'S RANKED NO 5 EXECUTIVES AT M&M/MARS INSIST THE COMPETITION ISN'T THE REASON FOR THE NEW AD TACTIC WE LOOK AT OUR BUSINESS FIRST AND HOW TO GROW IT AS OPPOSED TO LOOKING AT THE COMPETITION SAYS JIM CONLAN THE COMPANY'S EXTERNAL AFFAIRS DIRECTOR BUT TEENS AND YOUNG ADULTS ARE AN IMPORTANT PART OF OUR BUSINESS THEY ARE HIGH CONSUMERS OF SNACK FOOD AND ARE MORE RECEPTIVE TO MESSAGES DIRECTED AT THEM THAT IS WHY THE NEW AD TITLED DRUMBEAT IS ALSO GOING TO BE SEEN ON SUCH TEEN VEHICLES AS BEVERLY HILLS 90210 PARKER LEWIS CAN'T LOSE AND MTV THE ADVERTISING FOR M&M'S IS CRITICAL SAYS GARY STIBEL A PRINCIPAL AT THE NEW ENGLAND CONSULTING GROUP BECAUSE CANDY IS SO MUCH OF AN IMPULSE BUY A COMPANY LIKE M&M'S HAS TO CAPTURE THE MOMENT OF CHOICE WHEN THE CONSUMER IS READY TO MAKE A PURCHASE THE CANDY SAYS LISBETH ECHEANDIA PUBLISHER OF CONFECTIONER MAGAZINE IS TIMELESS BUT M&M'S IS TRYING TO INCREASE ITS MARKET SHARE BY PUTTING MORE THAN MILK CHOCOLATE IN THE HARD CANDY SHELL IN ADDITION TO PEANUTS THE BRAND RECENTLY ADDED A PEANUT BUTTER LINE AND ALMONDS TO THE MIX YET TO KIDS M&M'S COULD BE THE CANDY THEIR PARENTS BOUGHT A PRODUCT LINE EXTENSION IN 1988 DID LITTLE TO IMPROVE THE BRAND'S DECIDEDLY UNHIP IMAGE M&M'S BEGAN MANUFACTURING SPECIAL CANDY FOR CHRISTMAS AND EASTER MS ECHEANDIA SAYS THE IDEA IS A GOOD ONE BUT KIDS WON'T BUY THOSE PRODUCTS THE SPECIALLY PRODUCED CANDIES RED AND GREEN CANDY COATING FOR CHRISTMAS AND PASTEL COLORS FOR EASTER TEND TO BE PURCHASED BY ADULTS WHO FILL CANDY DISHES AND HAVE TAME HOLIDAY PARTIES SAY THE CANDY EXPERTS THE NEW AD ISN'T THE FIRST TIME M&M'S STRAYED FROM THE PLAIN AND PEANUT DUO LAST YEAR THE BRAND PRODUCED A SERIES OF FLAGWAVING SPOTS TIED TO THE OLYMPICS WITH THE CLINCHER WHO CAN BRING TOGETHER PEOPLE EVERYWHERE M&M'S CAN WE HAVE TO CONTINUE TO BE AGGRESSIVE IN MARKETING SAYS MR CONLAN OF M&M/MARS THERE IS MORE COMPETITION FOR THE CONSUMERS' HEARTS MINDS AND STOMACHS CHEVY CHASE THE COMEDIAN AND SOONTOBE LATENIGHT TALKSHOW HOST APPEARS IN A NEW COMMERCIAL FOR FRITOLAY'S DORITOS TORTILLA THINS TOMORROW IN THE 30SECOND SPOT CREATED BY OMNICOM GROUP'S BBDO A PLUMP GRANDMOTHER MUNCHES TORTILLA THINS OUT OF A BAG WHILE WALKING ONTO A CONSTRUCTION SITE AN OUTOFCONTROL STEAMROLLER APPROACHES BEHIND HER BUT SHE IS ENGROSSED IN THE CHIPS AND DOESN'T NOTICE MR CHASE SWINGS TO THE RESCUE ON A WRECKING BALL ONLY TO SNATCH AWAY THE CHIPS AND LEAVE HER TO HER FATE SHE SURVIVES BUT ENDS UP COVERED IN WET CEMENT INDUSTRY EXECUTIVES SAY PEPSICO'S FRITO HAS SIGNED ON AS A MAJOR SPONSOR OF THE CHEVY CHASE SHOW WHICH STARTS AIRING ON NEWS CORP'S FOX NETWORK AFTER LABOR DAY A FRITO SPOKESWOMAN SAID MEDIA PLANS HADN'T BEEN FINALIZED AS DORITOS ENDORSER MR CHASE FILLS THE SHOES OF HIS LATENIGHT RIVAL JAY LENO WHO APPEARED IN DORITOS COMMERCIALS FROM 1986 TO 1990 FRITO SAID IT PLANS TO PRODUCE TWO MORE SPOTS WITH MR CHASE NEXT YEAR BEER MOVES CANADA'S MOLSON CONFIRMED THAT INTERPUBLIC GROUP'S LINTAS WILL CREATE ADVERTISING FOR THE MOLSON ICE BRAND WHICH MOLSON BREWERIES USA IS TESTMARKETING IN GEORGIA AND MICHIGAN SEPARATELY PHILIP MORRIS'S MILLER BREWING CO WHICH RECENTLY ACQUIRED MARKETING RIGHTS TO MOLSON BRANDS IN THE US CONFIRMED THAT CHICAGO AGENCY BAYER BESS VANDERWARKER IS JOINING ITS STABLE OF AD AGENCIES FOR ADVERTISING PROJECTS THE PROJECTS WEREN'T DISCLOSED WHO'S NEWS SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES NAMED MICHAEL ROCHE CHAIRMAN OF ITS WEST COAST OPERATIONS MR ROCHE 63 YEARS OLD HAD BEEN EXECUTIVE VICE PRESIDENT JOHN NOBLE 53 WAS NAMED PRESIDENT AND EXECUTIVE CREATIVE DIRECTOR OF THE UNIT BASED IN IRVINE CALIF HE HAD BEEN EXECUTIVE VICE PRESIDENT AND CREATIVE DIRECTOR 9308040096 930804 BUSINESS BRIEF BEAR STEARNS PROFIT ROSE 58 TO RECORD IN FISCAL 4TH QUARTER NEW YORK BEAR STEARNS COS CONTINUED A MORE THAN TWOYEAR RUN OF STRONG EARNINGS FOR MOST BROKERAGE HOUSES REPORTING A 58 INCREASE IN FISCAL FOURTHQUARTER NET INCOME THE INVESTMENT BANKING FIRM ALSO ANNOUNCED THAT WILLIAM J MONTGORIS THE COMPANY'S CHIEF FINANCIAL OFFICER WOULD ASSUME THE ADDITIONAL TITLE OF CHIEF OPERATING OFFICER MR MONTGORIS 46 YEARS OLD SUCCEEDS ALVIN H EINBENDER MR EINBENDER 64 WILL REMAIN WITH THE COMPANY AS A SENIOR MANAGING DIRECTOR AND PURSUE PRIVATE INVESTMENTS AND PHILANTHROPIC ACTIVITIES THE COMPANY SAID FOR THE QUARTER ENDED JUNE 30 NET ROSE TO 1248 MILLION OR 102 A SHARE FROM 788 MILLION OR 68 CENTS A SHARE A YEAR EARLIER REVENUE INCREASED 31 TO 8853 MILLION BEAR STEARNS SAID THE RECORD EARNINGS RESULTED FROM REVENUE INCREASES THROUGHOUT MOST OF ITS MAJOR BUSINESSES INVESTMENT BANKING REVENUE JUMPED 51 AS UNDERWRITING AND ADVISORY FEES INCREASED AND COMMISSION REVENUE ROSE 31 AS CORRESPONDENT CLEARING AND PRIVATE CLIENT SERVICES CONTINUED TO REPORT GROWTH THE COMPANY SAID IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE BEAR STEARNS SHARES CLOSED AT 2375 DOWN 625 CENTS THE FIRM SAID IT WOULD GIVE 1 MILLION TO VARIOUS DISASTER RECOVERY FUNDS TO AID MIDWESTERN FLOOD VICTIMS IT ALSO DECLARED A CASH DIVIDEND OF 15 CENTS A COMMON SHARE AND A 5 STOCK DIVIDEND BOTH PAYABLE AUG 31 TO SHARES OF RECORD AUG 17 9308040095 930804 TRIZEC OFFERS EQUITY TO DEBTHOLDERS IN PLAN FOR RECAPITALIZATION CALGARY ALBERTA TRIZEC CORP BATTERED BY YEARS OF POOR REAL ESTATE MARKETS AND FALLING CASH FLOW HAS OFFERED DEBTHOLDERS A CHANCE TO SWAP THEIR HOLDINGS FOR EQUITY IN THE COMPANY AS PART OF A 187 BILLION CANADIAN DOLLAR US145 BILLION RECAPITALIZATION PLAN UNDER THE COMPLEX PLAN HOLDERS OF TRIZEC'S SENIOR DEBENTURES WOULD DISPLACE TORONTO'S BRONFMAN EMPIRE AS THE COMPANY'S LARGEST SHAREHOLDER CARENA DEVELOPMENTS LTD A BRONFMAN GROUP HOLDING COMPANY CURRENTLY HAS A 50 VOTING STAKE IN TRIZEC AN INTEREST WHICH WOULD BE DILUTED TO LESS THAN 12 IF THE PLAN IS APPROVED BILL L'HEUREUX PRESIDENT OF TRIZEC DESCRIBED THE PLAN AS AN EXERCISE IN CRISIS AVOIDANCE NOT CRISIS MANAGEMENT WITH ABOUT C982 MILLION IN DEBT COMING DUE OVER THE NEXT THREE YEARS AND ITS CASH FLOW FALLING BELOW INTEREST PAYMENT OBLIGATIONS TRIZEC HAS BEEN SEEKING AN EARLY SOLUTION TO ITS DEBT PROBLEM THE PLAN PROPOSES TO ALLOW HOLDERS OF TRIZEC'S C113 BILLION OF SENIOR DEBENTURES TO SWAP HALF OF THEIR HOLDINGS FOR A 49 EQUITY STAKE IN THE COMPANY WHILE THE REMAINING PORTION OF THEIR DEBT WOULD BE EXCHANGED FOR A NEW SERIES OF 10YEAR 8 DEBENTURES JUNIOR DEBENTUREHOLDERS AND PREFERRED SHAREHOLDERS WOULD SWAP THEIR ENTIRE HOLDINGS FOR NEW COMMON SHARES AS WELL AS CUTTING TRIZEC'S DEBT BY C859 MILLION THE PLAN WOULD SAVE THE COMPANY ABOUT C130 MILLION ANNUALLY IN DEBT SERVICE CHARGES AND PREFERRED SHARE DIVIDENDS MR L'HEUREUX SAID THE RECAPITALIZATION PLAN DOESN'T INVOLVE DEBT ISSUED BY TRIZEC'S OPERATING SUBSIDIARIES TRIZEC EXECUTIVES PLAN TO DISCUSS THE PLAN WITH SECURITYHOLDERS AT A SERIES OF MEETINGS LATER THIS MONTH AND TO HAVE APPROVALS IN PLACE BY OCTOBER WHEN PRINCIPAL PAYMENTS START TO FALL DUE THE COMPANY HAS ABOUT C56 MILLION OF DEBENTURES FALLING DUE LATER THIS YEAR AS WELL AS C150 MILLION OF PREFERRED SHARES TO BE REDEEMED IN DECEMBER AWAITING THE FINAL VERDICT OF SHAREHOLDERS AND DEBTHOLDERS TRIZEC SAID IT WILL SEEK TO CONSERVE CASH BY HALTING PAYMENTS OF PREFERRED SHARE DIVIDENDS 9308040094 930804 WHO'S NEWS AMERICAN GENERAL CORP AMERICAN GENERAL CORP HOUSTON JAMES R TUERFF 52 YEARS OLD WAS ELECTED PRESIDENT AND A DIRECTOR MR TUERFF WHO JOINED THE INSURANCE CONCERN IN 1967 SUCCEEDS ROY W HALEY 46 WHO THE COMPANY SAID RESIGNED TO PURSUE OTHER INTERESTS JAMES S D'AGOSTINO 47 WILL SUCCEED MR TUERFF AS PRESIDENT AND CHIEF EXECUTIVE OF THE COMPANY'S NASHVILLE TENN INSURANCE DIVISION MR TUERFF ALSO SERVES AS CHAIRMAN OF THE NASHVILLE BRANCH OF THE FEDERAL RESERVE BANK OF ATLANTA 9308040092 930804 WHO'S NEWS PA BERGNER & CO PA BERGNER & CO MILWAUKEE STANTON J BLUESTONE 58 YEARS OLD PRESIDENT OF THE MIDWEST DEPARTMENTSTORE RETAILER WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER MR BLUESTONE HAD BEEN ACTING CHIEF EXECUTIVE OFFICER FOR TWO YEARS WHILE THE COMPANY HAS OPERATED UNDER CHAPTER 11 BANKRUPTCYLAW PROTECTION ALSO MICHAEL R MACDONALD 41 FORMERLY CHIEF FINANCIAL OFFICER WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER THE SECONDHIGHEST POSITION AT THE COMPANY 9308040091 930804 OTC FOCUS STOCKS GAIN ON SELECTIVE INSTITUTIONAL PURCHASES OF LARGE TECHNOLOGY ISSUES BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SELECTIVE BUYING OF LARGE TECHNOLOGY CELLULAR AND BIOTECHNOLOGY STOCKS PUSHED OVERTHECOUNTER STOCK PRICES HIGHER THE NASDAQ COMPOSITE INDEX CLIMBED 135 OR 019 TO 70901 ADVANCING ISSUES OUTNUMBERED DECLINERS 1394 TO 1291 ON VOLUME OF 2475 MILLION SHARES THERE IS QUIET BUT STEADY BUYING BY INSTITUTIONS SAID JOSEPH LOFTUS A SENIOR OTC TRADER AT SHEARSON LEHMAN BROS THERE AREN'T ANY MAJOR DISASTERS AND MOST STOCKS ARE MILDLY BETTER AMONG THE BIGGER STOCKS POSTING GAINS MICROSOFT EDGED UP 1/4 TO 73 INTEL ROSE 3/8 TO 53 CHIRON JUMPED 3/4 TO 68 1/2 AND MCCAW CELLULAR COMMUNICATIONS CLIMBED 1/4 TO 49 PETER DAPUZZO HEAD OF OTC TRADING AT CANTOR FITZGERALD SAID MANY INVESTORS ARE WAITING TO SEE THE RESULTS OF THE BUDGET PACKAGE HEADED TO CONGRESS THIS WEEK MR DAPUZZO SAID THE ACQUISITION BY MERCK RAHWAY NJ OF MEDCO CONTAINMENT SERVICES MONTVALE NJ THE NATION'S LARGEST PROVIDER OF MAILORDER MEDICINES HAS INVESTORS SPECULATING ABOUT OTHER POTENTIAL MERGERS THE DAY'S MOST ACTIVE STOCK MEDCO GAINED 1/8 TO 35 ON VOLUME OF 56 MILLION SHARES THERE IS A LOT OF SPECULATION ABOUT FURTHER CONSOLIDATION IN MEDICALRELATED STOCKS AND BANK STOCKS MR DAPUZZO SAID THE SECOND MOSTACTIVE STOCK ACTEL LEAPED TO 13 1/4 FROM ITS OFFERING PRICE OF 9 1/2 ON ITS FIRST TRADING DAY LATE MONDAY ACTEL OFFERED 41 MILLION SHARES THROUGH UNDERWRITERS LED BY GOLDMAN SACHS ACTEL BASED IN SUNNYVALE CALIF MAKES AND MARKETS PROGRAMMABLE GATE ARRAYS AND ASSOCIATED SOFTWARE DEVELOPMENT SYSTEMS AND PROGRAMMING HARDWARE KAYDON JUMPED 2 1/4 TO 25 BEAR STEARNS & CO ANALYST JENNIFER COLE RAISED HER INVESTMENT RATING TO BUY FROM HOLD THE CLEARWATER FLA COMPANY MAKES CUSTOMENGINEERED ANTIFRICTION BEARINGS SYSTEMS FILTRATION UNITS AND ELEMENTS OXFORD HEALTH PLANS ROSE 1 3/4 TO 78 1/2 THE DARIEN CONN HEALTHCARE COMPANY POSTED SECONDQUARTER EARNINGS OF 41 CENTS A SHARE UP FROM 25 CENTS A YEAR EARLIER OXFORD HEALTH PLANS SAID ITS BOARD PLANS TO AUTHORIZE A TWOFORONE SPLIT OF COMMON SHARES THE STOCK SPLIT IS SUBJECT TO SHAREHOLDER APPROVAL OF A PROPOSED AMENDMENT TO INCREASE THE NUMBER OF AUTHORIZED SHARES TO 25 MILLION FROM 13 MILLION REGIS CLIMBED 1 TO 11 1/2 OPPENHEIMER & CO INITIATED COVERAGE OF THE STOCK WITH A BUY RATING THE EDINA MINN COMPANY OPERATES HAIR SALONS PRIMARILY IN REGIONAL SHOPPING MALLS IN NORTH AMERICA SHARES OF AMTECH PLUNGED AS LOW AS 23 3/4 BEFORE CLOSING AT 26 3/8 DOWN 7/8 ON MORE THAN TRIPLE NORMAL VOLUME NEWS SERVICE REPORTS CONTENDED THAT EUROPE'S RAILWAY ASSOCIATION HAD CHALLENGED AN AMTECH ANNOUNCEMENT LAST MONTH THAT THE DALLAS COMPANY'S TECHNOLOGY WAS CHOSEN AS THE STANDARD FOR AUTOMATIC RAILEQUIPMENT IDENTIFICATION SYSTEMS IN EUROPE BUT AMTECH'S PRESIDENT G RUSSELL MORTENSON SAID THE COMPANY STANDS BEHIND ITS STATEMENT HE BLAMED SHORT SELLERS FOR THE REPORTS AMERICAN MEDICAL ELECTRONICS ROSE 1 TO 7 3/4 THE RICHARDSON TEXAS COMPANY SAID THE FOOD AND DRUG ADMINISTRATION HAS GRANTED PERMISSION FOR COMMERCIAL MARKETING OF THE OGDEN SOFTTISSUE REATTACHMENT DEVICE FOR ANCHORING SUTURES TO THE BONE IN THE REPAIR OF ROTATORCUFF TEARS OF THE SHOULDER THE COMPANY SAID IT WILL BEGIN MARKETING THE OGDEN ANCHOR BEFORE THE FOURTH QUARTER OCTEL COMMUNICATIONS FELL 1 1/2 TO 22 1/4 FIRST BOSTON LOWERED ITS RATING TO HOLD FROM BUY TRADERS SAID FIRST BOSTON ALSO LOWERED ITS FISCAL 1994 EARNINGS ESTIMATE TO 140 A SHARE FROM 150 FOR THE YEAR ENDED JUNE 30 THE MILPITAS CALIF COMPANY EARNED 119 A SHARE OCTEL MAKES INFORMATION PROCESSING SYSTEMS TO INTEGRATE MULTIPLE FORMS OF INFORMATIONVOICE DATA AND IMAGEACROSS THE TELEPHONE BIOMET EASED 1/4 TO 9 3/4 THE WARSAW IND COMPANY SAID IT WILL INCUR A ONETIME 58 MILLION PRETAX CHARGE FOR THE QUARTER ENDING THIS MONTH THE CHARGE IS THE RESULT OF A JUDGMENT AGAINST THE COMPANY BY A FEDERAL COURT IN FLORIDA IN A PATENT DISPUTE THE CONTESTED PRODUCT ACCOUNTS FOR LESS THAN 1 OF BIOMET'S ANNUAL SALES THE COMPANY SAID BIOMET SAID IT PLANS TO APPEAL THE JUDGMENT IDEC PHARMACEUTICALS JUMPED 1 TO 4 3/4 THE LA JOLLA CALIF COMPANY SAID IT HAS RECEIVED FDA CLEARANCE TO BEGIN TESTING ON HUMANS A TREATMENT FOR RHEUMATOID ARTHRITIS CONDOR SERVICES LEAPED 1 1/2 TO 7 1/2 CONDOR POSTED SECONDQUARTER EARNINGS OF 45 CENTS A SHARE UP FROM 16 CENTS A SHARE A YEAR EARLIER CONDOR IS AN EL SEGUNDO CALIF INSURANCE HOLDING COMPANY FOR CLAIMS ADJUSTING AND REINSURANCE 9308040090 930804 INTERNATIONAL MONTEDISON TO SEIZE TEMPORARILY ASSETS FROM FORMER MANAGERS BY PETER TRUELL AND MAUREEN KLINE STAFF REPORTERS OF THE WALL STREET JOURNAL MILAN A STATE JUDGE PROVISIONALLY RULED THAT TROUBLED ITALIAN CONGLOMERATE MONTEDISON SPA COULD SEQUESTER 500 BILLION LIRE 3123 MILLION OF ASSETS FROM ITS FORMER TOP MANAGERS THE TEMPORARY SEQUESTRATION WAS REQUESTED BY THE GIANT HOLDING COMPANY'S NEW PRESIDENT GUIDO ROSSI IT WILL BE THE SUBJECT OF A MILAN COURT HEARING AUG 16 ACCORDING TO A STATEMENT RELEASED BY MONTEDISON MONTEDISON BROUGHT ITS ACTION AGAINST FORMER EXECUTIVES GIUSEPPE GAROFANO CARLO SAMA ARTURO FERRUZZI ROBERTO MAGNANI AND ROMANO VENTURI AND THE HEIRS OF THE LATE CHAIRMAN RAUL GARDINI UNTIL A FEW WEEKS AGO THESE MEN CONTROLLED MOST OF THE FERRUZZI FAMILY INTERESTS WHICH CENTER ON MONTEDISON AN AGROINDUSTRIAL AND CHEMICAL CONGLOMERATE BASED IN MILAN THEY LOST THAT CONTROL ABOUT A MONTH AGO WHEN THE FERRUZZI GROUP GROANING UNDER AN ESTIMATED 20 BILLION OF BANK DEBT AND PLAGUED BY GROWING REVELATIONS OF ALLEGED CORRUPTION AND WRONGDOING BY TOP MANAGERS WAS PUT INTO THE HANDS OF ITS CREDITOR BANKS SINCE THEN GABRIELE CAGLIARI THE FORMER PRESIDENT OF STATE ENERGY CONCERN ENTE NAZIONALE IDROCARBURI WHICH HAD A FAILED JOINT VENTURE WITH MONTEDISON AND MR GARDINI THE FORMER CHAIRMAN HAVE BOTH COMMITTED SUICIDE AS DETAILS OF A HUGE ALLEGED POLITICAL BRIBERY SCANDAL HAVE EMERGED MESSRS GAROFANO AND SAMA RESPECTIVELY CHAIRMAN AND MANAGING DIRECTOR OF MONTEDISON ARE NOW UNDER HOUSE ARREST AFTER GIVING EVIDENCE TO PROSECUTORS ACCORDING TO EXTENSIVE LEAKS TO THE ITALIAN PRESS MESSRS GAROFANO AND SAMA HAVE TOLD INVESTIGATORS THAT IN 1990 WHEN ENI BOUGHT OUT MONTEDISON'S 40 STAKE IN ENIMONT THE JOINT VENTURE AS MUCH AS 130 BILLION LIRE OF THE 2805 TRILLION LIRE 175 BILLION PRICE TAG WENT INTO THE POCKETS OF ITALY'S LEADING POLITICAL PARTIES AND POLITICIANS AT THE TIME MANY CRITICS ALLEGED THAT ENI SUBSTANTIALLY OVERPAID MONTEDISON SAYS IT IS CLAIMING 500 BILLION LIRE BECAUSE OF VARIOUS MANAGEMENT ACTIONS DAMAGING TO THE COMPANY THESE HAVE EMERGED FROM INVESTIGATIVE WORK BY MONTEDISON'S NEW MANAGEMENT AND BY PUBLIC PROSECUTORS CONDUCTING THE NATIONWIDE CLEAN HANDS PROBE INTO ALLEGED WIDESPREAD CORRUPTION IN THE UPPER ECHELONS OF ITALIAN BUSINESS AND POLITICS THE SOCALLED MANAGEMENT ACTIONS AT MONTEDISON INCLUDE AN UNEXPECTED LOSS OF 320 BILLION LIRE MOST OF WHICH ALLEGEDLY STEMS FROM AN UNSUCCESSFUL 1989 ATTEMPT TO CORNER THE SOYA MARKET ON THE CHICAGO MERCANTILE EXCHANGE ACCORDING TO SOMEONE CLOSE TO MONTEDISON THEY ALSO REFER TO VARIOUS POLITICAL KICKBACKS TOTALING AS MUCH AS 170 BILLION LIRE AND INCLUDING THE ALLEGED BRIBES PAID IN THE ENIMONT AFFAIR THE SAME PERSON SAID MEDIOBANCA A MILAN INVESTMENT BANK IS PUTTING TOGETHER AN EXTENSIVE RESTRUCTURING PLAN FOR FERRUZZI FINANZIARIA SPA THE HOLDING COMPANY FOR FERRUZZI FAMILY INTERESTS THAT PLAN WILL BE SUBMITTED TO CREDITOR BANKS AT THE END OF THE MONTH ACCORDING TO BANKERS AN IMPORTANT DISPUTE ALSO IS PENDING OVER TRILLIONS OF LIRE OF POTENTIAL ENVIRONMENTAL LIABILITIES INCURRED BY ENIMONT MR ROSSI MONTEDISON'S NEW CHAIRMAN WANTS TO BRING THE MATTER BEFORE A MILAN COURT AS RESPONSIBILITY FOR THOSE LIABILITIES WASN'T SETTLED WHEN ENI ACQUIRED MONTEDISON'S STAKE IN ENIMONT A BULK CHEMICAL PRODUCER A LONG ARBITRATION ATTEMPT NEVER RESOLVED THE ISSUE 9308040089 930804 RULE OF LAW HONG KONG LAWYERS PROFILES IN KOWTOWING BY L GORDON CROVITZ IT'S HARD ENOUGH TO IMAGINE AN AMERICAN LAWYER TURNING DOWN A CASE FROM A PAYING CLIENT HARDER STILL TO BELIEVE IF THE WOULDBE CLIENT IS NOT ONLY AN ATTORNEY HIMSELF BUT ALSO IS ONE OF THE MORE REVERED FIGURES AROUND BUT IN THE HONG KONG THAT AWAITS TAKEOVER BY CHINA IN 1997 THE BRITISH COLONY'S LEADING LAWYER RECENTLY DISCOVERED THAT HE COULDN'T FIND A LAWYER PROFESSIONAL COURTESY CERTAINLY DIDN'T APPLY TO MARTIN LEE DURING THE PAST TWO WEEKS HE MAY BE A BARRISTER QUEEN'S COUNSEL AND FORMER REPRESENTATIVE OF THE LAWYERS IN THE LOCAL LEGISLATURE BUT HE IS ALSO THE HEAD OF HONG KONG'S LEADING PRODEMOCRACY POLITICAL PARTY AND ONE OF THE FEW DEMOCRATICALLY ELECTED LEGISLATORS AND EVEN THOUGH OFFICIAL CONTROL BY CHINA IS STILL FOUR YEARS AWAY 18 LEADING LAW FIRMS REFUSED A CASE THAT MIGHT OFFEND BEIJING BECAUSE IT PITTED PLAINTIFFS WITH THE WRONG POLITICS AGAINST A DEFENDANT WITH THE RIGHT CONNECTIONS THE CAUTIONARY TALE BEGAN IN MIDJULY WITH STATEMENTS IN BEIJING BY ANOTHER PROMINENT MEMBER OF HONG KONG'S LEGAL COMMUNITY SIMON LI MR LI IS A FORMER JUDGE ON THE COURT OF APPEAL IN HONG KONG BUT HE IS MORE NOTABLY ONE OF THE TOP OFFICIALS IN BEIJING'S PREPATORY COMMITTEE WORKING GROUP SET UP TO EXECUTE THE TAKEOVER OF HONG KONG A GROUP BETTER KNOWN IN THE TERRITORY AS THE SHADOW GOVERNMENT MR LI SAID THAT MR LEE AND SZETO WAH ANOTHER DEMOCRACY ADVOCATE WOULD NOT BE ALLOWED TO REMAIN IN THE LEGISLATURE AFTER 1997 BECAUSE THEY URGED RUNS ON CHINESE BANKS IN 1989 AFTER THE TIANANMEN SQUARE CRACKDOWN THE TWO LABELED SUBVERSIVE COUNTERREVOLUTIONARIES BY BEIJING SAY THEY IN FACT ARGUED AGAINST ANY BANK WITHDRAWAL AND CONSIDER THE COMMENTS DEFAMATORY IT IS UP TO A COURT TO DECIDE THE MATTER BUT ONLY IF THE MATTER GETS TO COURT THIS CASE OF ANTICOMMUNIST PLAINTIFFS TRYING TO SUE AN OFFICIAL ADVISER TO CHINA IS A REMINDER THAT THE RULE OF LAW DEPENDS ON THE SOMETIMES THIN REED OF THE COURAGE OF LAWYERS FIRST MR LEE HAD TO FIND A FIRM OF SOLICITORS TO HANDLE THE CASE BARRISTERS CANNOT HANDLE CASES ON THEIR OWN A LEADING FIRM DEACONS FILED THE ORIGINAL COURT PAPERS ON BEHALF OF THE CASE WITHOUT GIVING A PUBLIC EXPLANATION THEN EIGHT FIRMS WERE APPROACHED ONLY TO TURN DOWN THE CASE FINALLY HELDANE MIDGLEY & BOOTH WHICH REPRESENTS DOW JONES & CO'S HONG KONG PUBLICATIONS INCLUDING THE FAR EASTERN ECONOMIC REVIEW AND THE ASIAN WALL STREET JOURNAL CAME FORWARD TO HANDLE THE LAWSUIT BUT WITHIN A FEW DAYS THE FIRM FOUND A CONFLICT SERIOUS ENOUGH TO WITHDRAW FROM THE CASE MR LI IS A BOARD MEMBER OF THE BANK OF EAST ASIA A LEADING CLIENT OF THE LAW FIRM MR LEE THEN HAD TO APPROACH SOME 10 OTHER FIRMS BEFORE THE FIRM OF HERBERT SMITH AGREED TO HANDLE THE MATTER DURING THE SEARCH FOR A LAWYER THE LAW SOCIETY THE LOCAL EQUIVALENT OF THE AMERICAN BAR ASSOCIATION COULD SEE OR HEAR NO PROBLEM CHAIRMAN RODERICK WOO SHRUGGED OBVIOUSLY THERE WOULD BE SOME CASES LAWYERS DO NOT WANT TO TAKE ON BECAUSE THERE IS A POLITICAL INGREDIENT TO THEM THE LAW SOCIETY WASHED ITS HANDS OF THE MATTER WITH A PRESS RELEASE SAYING IT WOULD INVESTIGATE ANY COMPLAINT BUT THAT MR LEE HAS NOT LODGED ANY SUCH COMPLAINT TO THE LAW SOCIETY AGAINST ANY OF ITS MEMBERS WHICH HE COULDN'T BECAUSE THE GROUP HAS NO RULES AGAINST REFUSING CLIENTS FOR REASONS OF POLITICAL CONVENIENCE WHILE THE LAW SOCIETY CIRCLED THE WAGONS THE HONG KONG PUBLIC UNDERSTOOD THEY HAD WITNESSED A KEY MOMENT IN THE COUNTDOWN TO 1997 THE SUNDAY MORNING POST COMMISSIONED A POLL THAT FOUND THAT WHILE 63 THINK THE TERRITORY NOW HAS A FAIR LEGAL SYSTEM 43 CONFIRMED THAT MR LEE'S DIFFICULTIES FINDING LEGAL REPRESENTATION DECREASED THEIR FAITH IN LOCAL LAWYERS ONLY 23 SAID IT WOULD BE POSSIBLE TO WIN A LAWSUIT AGAINST THE CHINARUN GOVERNMENT AFTER 1997 AND JUST 41 THOUGHT A CASE COULD BE WON AGAINST A MAINLAND COMPANY AFTER 1997 IN OTHER WORDS BEIJING AND ITS FRIENDS WOULD BE ABOVE THE LAW THIS IS SAD NEWS FOR PEOPLE IN HONG KONG FOREIGN FIRMS THAT DO BUSINESS IN THE WORLD'S 10TH LARGEST TRADING ECONOMY AND PERHAPS MOST OF ALL FOR CHINA ITSELF THE MARKETS OF SOUTHERN CHINA AND HONG KONG ARE ALREADY CLOSELY STITCHED TOGETHER WITH ACTIVE INVESTORS ON BOTH SIDES OF THE BORDER BUT WHAT LEGAL PROTECTION IS THERE FOR COMPANIES THAT FIND THEMSELVES IN LITIGATION WITH CHINESE FIRMS THAT HAVE THE ESSENTIAL GUANXI OR CONNECTIONS AS MR LEE SAYS THE SPECTER OF CHINA'S WITHDRAWAL OF BUSINESS OR CONNECTIONS IS ENOUGH TO HAVE MANY BUSINESSMEN AND LAWYERS IN TOWN TOEING AN INVISIBLE LINE FOR THAT MATTER BEIJING'S ASSURANCE OF ONECOUNTRY TWOSYSTEMS AFTER 1997 DEPENDS ON SOME WAY TO ENFORCE PRIVATE PROPERTY RIGHTS CONTRACTS AND FREE SPEECH IN HONG KONG OTHER ASPECTS OF A RULE OF LAW CLEARLY STATED RIGHTS SENSIBLE RULES AND INDEPENDENT JUDGES COUNT FOR NOTHING IF LITIGANTS CANNOT FIND LAWYERS WILLING TO VINDICATE THEIR RIGHTS IN COURT LAWYERS WHO REFUSED FOR POLITICAL REASONS TO REPRESENT MR LEE MAY HAVE PROTECTED THEIR SHORTTERM INTERESTS PRINCIPLE ASIDE HOWEVER LAWYERS WILL BE OF LITTLE VALUE IN POST1997 HONG KONG IF COMMUNIST PARTY DICTATES RESOLVE LEGAL DISPUTES AS THEY DO IN CHINA IT'S NO ACCIDENT THAT THERE ARE NO PROSPEROUS LAWYERS IN BEIJING THE LAST THING CHINA SHOULD WANT IS A HONG KONG STRIPPED OF THE RULE OF LAW HONG KONG NOW HAS AN AVERAGE INCOME HIGHER THAN THAT OF BRITAIN BUT WHAT SEPARATES PEOPLE IN HONG KONG FROM THEIR COUSINS ON THE MAINLAND IS NOT THEIR DIALECT OR THE SPICES THEY USE IN THEIR CUISINE IT'S THAT THE HARDWORKING CHINESE WERE ABLE TO TRANSFORM HONG KONG INTO ONE OF THE COMMERCIAL WONDERS OF THE WORLD BY OPERATING FREELY UNDER A RULE OF LAW NOT OF MEN INDEED THE RULE OF LAW IS A BEQUEST FROM BRITAIN TO CHINA MORE VALUABLE THAN ALL THE BILLIONS OF RESERVES IN HONG KONG'S TREASURY THE PRESENT DANGER IS THAT CHINA WILL KILL THE RULE OF LAW GOOSE THAT MADE HONG KONG'S GOLDEN EGGS POSSIBLE OFFICIALS IN BEIJING NOW AGREE WITH THE COLONIAL RULERS OF HONG KONG THAT IN DENG XIAOPING'S WORDS TO GET RICH IS GLORIOUS SOMEONE SHOULD TELL MR DENG AND HIS COLLEAGUES THAT THIS MEANS THEY SHOULD HELP HONG KONG PRESERVE ITS RULE OF LAW IT IS UNDERSTANDABLE THAT CHINESE OFFICIALS MAY NOT APPRECIATE THE IMPORTANCE OF A RULE OF LAW OR ITS FRAILTY NEVER HAVING LIVED UNDER SUCH A SYSTEM BUT HONG KONG REQUIRES THE RULE OF LAW TO SURVIVE AND CHINA ITSELF REQUIRES IT FOR THE NEXT STEP OF ITS DEVELOPMENT WHAT A TRAGEDY IF BEIJING ALLOWS AN ADVANCED LEGAL SYSTEM TO WITHER IN THE SOONTOBE PART OF CHINA WHERE IT EXISTS CHINA'S TRUE FRIENDS AMONG HONG KONG'S LAWYERS WILL SPEND THE NEXT FOUR YEARS STRESSING THE IMPORTANCE OF THE RULE OF LAW TO BOTH HONG KONG AND CHINA NOT RUNNING AWAY FROM CONTROVERSIAL LAWSUITS MR CROVITZ IS EDITOR OF THE FAR EASTERN ECONOMIC REVIEW A DOW JONES & CO WEEKLY BASED IN HONG KONG FROM WHICH THIS IS ADAPTED 9308040088 930804 INTERNATIONAL GLOBAL PROMISE OF ISRAELI TECHNOLOGY SPURS GROWTH OF VENTURE CAPITAL FUNDS BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL TEL AVIV UNTIL RECENTLY THERE WAS NO SUCH THING AS AN ISRAELI VENTURE CAPITAL INDUSTRY NOW A GROWING NUMBER OF VENTURE CAPITAL FUNDS EAGER TO PROVIDE CASH FOR ISRAELI HIGHTECH COMPANIES HOPING TO MAKE IT IN THE GLOBAL MARKET ARE SETTING UP SHOP HERE MORE THAN 130 MILLION HAS BEEN RAISED SINCE THE START OF THE YEAR FOR FUNDS RUN BY COMPANIES SUCH AS ADVENT INTERNATIONAL CORP OF BOSTON WALDEN GROUP AND OXTON INTERNATIONAL CAPITAL CORP BOTH BASED IN SAN FRANCISCO ADDITIONAL SUMS FOR NEW FUNDS ARE CURRENTLY BEING RAISED BY AT LEAST HALF A DOZEN OTHER AMERICAN EUROPEAN AND JAPANESE COMPANIES INCLUDING KYOCERA CORP A JAPANESE MULTINATIONAL AND ITS US SUBSIDIARY AVX CORP ISRAELI COMPANIES ARE ALSO GETTING INTO THE ACT INVESTMENT CO OF BANK HAPOALIM LTD A PUBLICLY TRADED COMPANY IN WHICH ISRAEL'S LARGEST BANK BANK HAPOALIM HAS A 50 STAKE IS RAISING MONEY TO START A 20 MILLION VENTURE CAPITAL FUND FOR A COUNTRY THAT HAS STRUGGLED FOR YEARS TO ATTRACT FOREIGN INVESTORS THE CURRENT SITUATION PROVIDES AN UNPRECEDENTED OPPORTUNITY FOR ISRAELI COMPANIES TO GAIN ACCESS TO MUCHNEEDED MANAGEMENT AND MARKETING SKILLS ISRAELI ANALYSTS SAY VENTURE CAPITAL IS ESSENTIAL FOR DEVELOPING THE KINDS OF SOPHISTICATED PRODUCTS THAT CAN BE EXPORTED TO THE WORLD MARKET SUCH PRODUCTS IN TURN COULD BE A CRITICAL ENGINE FOR THE ECONOMY'S CONTINUED GROWTH AND ITS ABILITY TO ABSORB THE RECENT INFLUX OF RUSSIAN JEWISH IMMIGRANTS BUT THE VENTURE CAPITAL PHENOMENON HAS ALSO RAISED CONCERNS THAT THE LONGAWAITED INVESTMENT BOOM MAY LOSE STEAM BECAUSE AN OVERSUPPLY OF MONEY HAS CAUSED THE PRICE OF DEALS TO SKYROCKET AND THEIR QUALITY TO DECLINE ISRAELI ANALYSTS ATTRIBUTE THE INVESTMENT SURGE TO OPTIMISM STEMMING FROM THE PEACE PROCESS AND THE ISRAELI ECONOMY'S 66 GROWTH RATE LAST YEAR ANOTHER DRIVING FACTOR BEHIND THE INTEREST IN ISRAELI HIGHTECH IS THE SUCCESSFUL PERFORMANCE BY SUCH CONCERNS ON THE NEW YORK STOCK MARKET OVER 40 ISRAELI TECHNOLOGY COMPANIES TRADE ON WALL STREET WITH A TOTAL MARKET VALUE OF AROUND 10 BILLION BUT LATE LAST MONTH PRICES IN ISRAELI STOCKS DROPPED FOLLOWING AN ANNOUNCEMENT BY ISRAEL'S LEADING HIGHTECH COMPANY SCITEX CORP THAT IT EXPECTS EARNINGS TO FALL BELOW ANALYSTS' ESTIMATES FOR THE SECOND QUARTER SCITEX MAKES COMPUTERBASED IMAGING SYSTEMS PRIMARILY FOR THE PRINTING AND PUBLISHING INDUSTRY SO FAR EAGERNESS TO MAKE A QUICK PROFIT HAS RESULTED IN MOST OF THE FUNDS FOCUSING ON HIGHTECH VENTURES THAT ARE 12 TO 18 MONTHS AWAY FROM GOING PUBLIC AS A RESULT THERE IS NOW AN EXCESS OF CAPITAL CHASING TOO FEW HIGHQUALITY PROJECTS SAYS YADIN KAUFMANN OF TOLKOWSKY KAUFMANN & VAN DER SCHUEREN AN INVESTMENT MANAGEMENT GROUP HERE THAT OPERATES SEVERAL VENTURE CAPITAL FUNDS SPECIALIZING IN EARLYSTAGE INVESTMENTS EQUITY FOR A GENIUS IN A BACKYARD GARAGE WHO HAS A BRILLIANT IDEA IS STILL IN SHORTAGE MR KAUFMANN SAYS THE CURRENT OVERSUPPLY OF CASH MEANS THAT HUGE PROFITS ARE STILL POSSIBLE ONLY AT THE VERY EARLY STAGES OF A COMPANY'S EXISTENCE WHEN FINANCIAL RISKS AND THE NEED FOR A FUND'S DAILY INVOLVEMENT IN EVERY FACET OF THE BUSINESS ARE THE HIGHEST EVERGREEN CANADAISRAEL INVESTMENTS LTD A CANADIAN FULLSERVICE INVESTMENT COMPANY WITH TWO VENTURE CAPITAL FUNDS EVEN STATED IN A PROSPECTUS SUBMITTED TO THE TEL AVIV STOCK EXCHANGE EARLIER THIS YEAR THAT THE GROWTH IN THE NUMBER OF NEW FUNDS HAS ADVERSELY AFFECTED THE COMPANY'S ABILITY TO FIND HIGHQUALITY HIGHPROFIT DEALS DAVID ARZI CHAIRMAN OF NICE SYSTEMS LTD A TEL AVIV DEVELOPER AND MANUFACTURER OF HIGHTECH COMPUTER COMMUNICATIONS PRODUCTS SAYS THE INFLUX OF CASH IS CAUSING STARTING SALARIES FOR ENGINEERS TO SKYROCKET THERE IS A LOT OF MONEY LOOKING VERY AGGRESSIVELY FOR DEALS BUT THE ISRAELI HIGHTECH INDUSTRY DOESN'T HAVE THE AMOUNT OF MANPOWER THAT'S NEEDED TO WORK ON DEVELOP AND MARKET THE KINDS OF SOPHISTICATED PROJECTS THE FUNDS ARE SEEKING SAYS MR ARZI STARTING ENGINEERS ARE NOW DEMANDING AND GETTING SALARIES OF ENGINEERS WITH FIVE YEARS' EXPERIENCE AND THIS MAY AFFECT OUR ABILITY TO COMPETE ABROAD IN THE FUTURE BUT ED MLAVSKY PRESIDENT OF GEMINI ISRAEL FUND A TEL AVIV VENTURE CAPITAL FUND SAYS THAT THE CURRENT IMBALANCE WILL CORRECT ITSELF AS RUSSIAN IMMIGRANT ENGINEERS AND SCIENTISTS GET UP TO SPEED AND INCREASING NUMBERS OF ISRAELI ENTREPRENEURS BEGIN STRIKING OUT ON THEIR OWN AND FORM NEW COMPANIES IN RESPONSE TO THE READY AVAILABILITY OF MONEY STARTUPS ARE NOW COMING OUT OF THE WOODWORK BECAUSE THERE'S MONEY IF THE MONEY DRIES UP GUYS COMING OUT OF THE ARMY WILL GO LOOK FOR JOBS AT EXISTING COMPANIES INSTEAD OF GETTING TOGETHER AND FORMING THEIR OWN BUSINESSES SAYS MR MLAVSKY HE ESTIMATES THAT ISRAEL CAN SUSTAIN A VENTURE CAPITAL MARKET OF A QUARTER OF A BILLION DOLLARS IN THE FACE OF THE CURRENT FLOOD OF MONEY THE ISRAELI GOVERNMENT WHICH HAS TRIED TO ENCOURAGE THE VENTURE CAPITAL TREND IS NOW REEVALUATING WHAT ROLE IT SHOULD PLAY IN THE MARKET AN EXAMPLE IS THE OUTLOOK OF YOZMA VENTURE CAPITAL LTD A 50 MILLION GOVERNMENTOWNED COMPANY THAT TAKES EQUITY POSITIONS IN PROMISING HIGHTECH COMPANIES EITHER ON ITS OWN OR IN PARTNERSHIP WITH OTHER VENTURE CAPITALISTS YOZMA IS CONSIDERING WAYS OF INDUCING MORE FUNDS TO INVEST IN THE VERY EARLY STAGES OF COMPANIES THOSE THAT ARE THREE OR MORE YEARS AWAY FROM A PUBLIC OFFERING THE ISRAELI VENTURE CAPITAL INDUSTRY IS STILL IN AN EMBRYONIC STAGE SAYS YIGAL ERLICH WHO HEADS YOZMA 9308040087 930804 US AIRLINES TRIM ROUTES OVER ATLANTIC AMR DELTA CUTS FOLLOW BIG FIGHT FOR EUROPE SLOW MARKET IS FACTOR BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL AFTER SPENDING BILLIONS OF DOLLARS FOR THE RIGHT TO FLY TO EUROPE US AIRLINES ARE SUSPENDING SERVICE ON SOME TRANSATLANTIC ROUTES SIGNALING THAT THE MARKET PROBABLY WON'T TURN AROUND ANY TIME SOON AMR CORP'S AMERICAN AIRLINES SAID YESTERDAY IT WILL SUSPEND SERVICE ON THREE EUROPEAN ROUTES THIS FALL AMERICAN WILL STOP FLYING BETWEEN CHICAGO AND BERLIN AND DALLAS/FORT WORTH AND BRUSSELS OCT 1 AND DALLAS/FORT WORTH AND MADRID ON NOV 1 AMERICAN THE SECONDLARGEST US CARRIER ON THE NORTH ATLANTIC ROUTES WILL CONTINUE TO SERVE THOSE DESTINATIONS FROM OTHER CITIES IN ITS NETWORK AN AMERICAN SPOKESMAN SAID THESE ROUTES WERE MARGINAL IN THEIR PERFORMANCE AND LOOKING TOWARD THE FALL AND WINTER SEASON WE FEEL AS THOUGH WE CAN PUT THOSE RESOURCES TO BETTER USE ELSEWHERE AIRLINES USUALLY ALTER THEIR SCHEDULES AFTER LABOR DAY PARTICULARLY ON INTERNATIONAL FLIGHTS AND AMERICAN SAYS IT WILL DECIDE NEXT SPRING WHETHER TO REINSTITUTE THE FLIGHTS AMERICAN'S ACTION IS GOVERNED BY MORE THAN THE CALENDAR MAJOR US AIRLINES HAVE HAD COLLECTIVE OPERATING LOSSES OF 8453 MILLION ON TRANSATLANTIC OPERATIONS FOR THE YEAR ENDED MARCH 31 EVEN DELTA AIR LINES WHICH FROWNS ON PULLING OUT OF ROUTES PLANS TO ELIMINATE ITS MIAMIFRANKFURT FLIGHTS COME FALL AND A SPOKESMAN SAID DELTA IS LOOKING AT OUR EUROPEAN OPERATIONS TO MAKE SURE WE ARE AS EFFICIENT AS WE CAN BE JON ASH A CONSULTANT WITH GLOBAL AVIATION ASSOCIATES OF WASHINGTON DC SAYS THE PROBLEMS REGARDING TRANSATLANTIC FLIGHTS STEM PRIMARILY FROM OVERCAPACITY US AND FOREIGN AIRLINES ADDED ROUTES AT A FAST CLIP SINCE 1989 IN A MOVE TO ENSCONCE THEMSELVES IN THOSE MARKETS BEFORE A MORE UNIFIED EUROPE MADE THAT IMPOSSIBLE AND IN DEFENSIVE ACTIONS TO LIMIT RIVALS' FLEXIBILITY BUT THE POSSIBILITY OF A COMMON EUROPEAN MARKET DIDN'T TURN OUT TO BE THE THREAT EVERYONE THOUGHT IT WOULD BE AND THE WORLD'S ECONOMY WENT TO HELL MR ASH SAYS THE TRANSATLANTIC MARKET WHICH WAS NEVER GOOD IS VIRTUALLY IMPOSSIBLE TO MAKE MONEY ON THAT'S CERTAINLY THE CASE FOR DELTA WHICH HAS SEEN THE LION'S SHARE OF LOSSES IN EUROPE WITH 611 MILLION IN OPERATING LOSSES FOR THE YEAR ENDED MARCH 31 THE AIRLINE PLANS TO AMEND ITS SCHEDULE FOR THE FALL SUSPENDING ITS ATLANTA TO NICE FRANCE FLIGHT AND CUTTING THE NUMBER OF WEEKLY FLIGHTS FROM NEW YORK TO COPENHAGEN AND STOCKHOLM TO FOUR FROM SEVEN FOR EXAMPLE BUT A SPOKESMAN CALLS THESE MOVES NORMAL SEASONAL ADJUSTMENTS WE MAKE EVERY YEAR COME SPRING DELTA PLANS TO RESTORE THOSE FLIGHTS MR ASH POINTS OUT THAT AMERICAN'S THRESHOLD FOR PAIN TENDS TO BE FAIRLY LOW THEY ARE MORE LIKELY TO WALK AWAY FROM A ROUTE AFTER SIX TO EIGHT MONTHS WHERE OTHER CARRIERS ARE LIKELY TO STICK IT OUT BUT AMERICAN'S RECENT MOVES TO CUT ITS COSTS FROM CAPITAL SPENDING TO ROUTES TO ITS FLEET HAVE BEEN WIDELY COPIED THROUGHOUT THE INDUSTRY ALSO THE AIRLINE EMBARKED ON A TRANSITION PLAN CALLING FOR SLASHING UNPROFITABLE OPERATIONS OTHER AIRLINES HAVE TAKEN SIMILAR CUTS TRANS WORLD AIRLINES STREAMLINED ITS EUROPEAN OPERATIONS LAST YEAR PULLING OUT OF ISTANBUL MOSCOW COPENHAGEN AND STOCKHOLM AND ON ITS REMAINING MARKETS SUBSTITUTING SMALLER PLANES FOR ITS BIG BOEING 747S AND LOCKHEED L1011S A TWA SPOKESMAN SAID THE AIRLINE ISN'T PLANNING CUTBACKS BELOW LAST YEAR'S LEVEL UAL CORP'S UNITED AIRLINES UNIT DIDN'T HAVE ANY COMMENT ON ITS PLANS BRITISH AIRWAYS HOWEVER PLANS TO REDUCE CAPACITY 65 FOR THE FALL TO REFLECT THE SEASONAL ADJUSTMENTS BUT ITS CAPACITY IS AHEAD OF LAST YEAR BECAUSE IT HAS MORE FLIGHTS TO CANADA AND IT WILL START FLYING FROM BALTIMORE AND CHARLOTTE NC TO LONDON WE'VE ALL SEEN THE PRESSURE SAID A BRITISH AIR SPOKESMAN WHAT WE'VE SEEN IS AN INCREASE IN PASSENGER VOLUME BUT THE YIELDS MAN EXPRESSION OF REVENUE ARE NOT WHERE THEY WERE A FEW YEARS AGO 9308040086 930804 MARKETING & MEDIA GENERAL INSTRUMENT ACCORD CHICAGO GENERAL INSTRUMENT CORP SAID IT AGREED TO PROVIDE DIGITAL COMPRESSION TECHNOLOGY TO PRIMESTAR A SATELLITETELEVISION SERVICE OWNED BY GENERAL ELECTRIC CO AND SIX CABLE COMPANIES GENERAL INSTRUMENT A COMMUNICATIONS TECHNOLOGY COMPANY VALUED THE AGREEMENT AT 250 MILLION PRIMESTAR LAUNCHED IN 1990 SERVES 60000 TV SUBSCRIBERS MOSTLY IN RURAL AREAS 9308040085 930804 INTERNATIONAL MARUBENI TEAMS UP WITH CHINA NATIONAL FOR ASIAN OIL PROJECTS SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S MARUBENI CORP AND CHINA'S STATE OILPRODUCTION COMPANY CHINA NATIONAL PETROLEUM CORP SIGNED A COOPERATION PACT TO CONDUCT OIL BUSINESSES JOINTLY IN ASIAN COUNTRIES OUTSIDE JAPAN AND CHINA A MARUBENI SPOKESMAN SAID THE TWO COMPANIES WILL COOPERATE ON OILDEVELOPMENT REFINING AND RETAIL OPERATIONS IN SOUTHEAST ASIA AND CENTRAL ASIA THE SPOKESMAN SAID THOUGH NO INDIVIDUAL PROJECTS HAVE BEEN SET AS CHINESE DOMESTIC OIL PRODUCTION BECOMES STATIC THE SPOKESMAN SAID CHINA NATIONAL IS LOOKING TO ENTER OIL BUSINESSES OVERSEAS AND IS AIMING TO BECOME AN INTEGRATED OIL FIRM LIKE A WESTERN MAJOR MARUBENI A MAJOR TRADING COMPANY WILL TAP THE CHINA NATIONAL'S EXPERTISE IN OIL DEVELOPMENT HE SAID EARLIER THIS YEAR MARUBENI SIGNED A CONTRACT TO BUILD AN OIL REFINERY WITH AN ANNUAL CAPACITY OF FIVE MILLION METRIC TONS IN THE FORMER SOVIET REPUBLIC OF UZBEKISTAN BUT CHINA NATIONAL HASN'T BECOME PART OF THE PROJECT THE SPOKESMAN SAID A METRIC TON IS APPROXIMATELY 22046 POUNDS ITOCHU CORP ANOTHER LARGE JAPANESE TRADING HOUSE SAID LAST MONTH THAT IT ENTERED A COOPERATION PACT WITH CHINA NATIONAL FOR CONSTRUCTION OF A CHINESE REFINERY AND A NETWORK OF GAS STATIONS THOSE TWO COMPANIES ALSO AGREED TO COOPERATE IN OVERSEAS OIL DEVELOPMENT CHINA NATIONAL IS THE FORMER OIL AND GAS MINISTRY OF CHINA AND IS CURRENTLY IN CHARGE OF CHINA'S LANDBASED OIL AND GAS PRODUCTION 9308040084 930804 INTERNATIONAL BRIEF ESSELTE AB PROFIT FELL 30 ON 14 RISE IN SALES IN THE FIRST HALF STOCKHOLMBASED OFFICE SUPPLIES AND EQUIPMENT GROUP ESSELTE AB SAID ITS PRETAX PROFIT AFTER FINANCIAL ITEMS FELL 30 IN THE FIRST HALF SALES ROSE 14 TO 57 BILLION KRONOR 7068 MILLION FROM 5 BILLION KRONOR THE COMPANY DIDN'T ELABORATE ON ITS BRIEF INTERIM EARNINGS REPORT ESSELTE NORMALLY RELEASES EARNINGS FIGURES ON A FOURMONTH BASIS BUT THE COMPANY SAID THAT IN 1994 IT WILL BEGIN TO PUBLISH RESULTS ON A QUARTERLY BASIS A PRELIMINARY AND MORE DETAILED REPORT ON THE FIRST EIGHT MONTHS OF 1993 INCLUDING A FULLYEAR PROFIT FORECAST WILL BE RELEASED SEPT 20 THE COMPANY SAID 9308040083 930804 GORE TO GET ROLE IN SYSTEM TO REVIEW REGULATORY PLANS BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS PUTTING THE FINISHING TOUCHES ON A WHITE HOUSE SYSTEM FOR REVIEWING REGULATORY PROPOSALS WHICH GIVES A BIG ROLE TO VICE PRESIDENT AL GORE SALLY KATZEN HEAD OF THE WHITE HOUSE'S OFFICE OF INFORMATION AND REGULATORY AFFAIRS WHICH IS IN CHARGE OF REVIEWING AGENCY RULES SAID AN EXECUTIVE ORDER COVERING THE NEW SYSTEM SHOULD BE READY BY THE END OF THE MONTH ONE OF PRESIDENT CLINTON'S FIRST ACTS IN OFFICE WAS TO ABOLISH FORMER VICE PRESIDENT DAN QUAYLE'S COMPETITIVENESS COUNCIL AND BEGIN WORKING ON A REPLACEMENT THE COMPETITIVENESS COUNCIL WAS CRITICIZED BY MR GORE DURING THE ELECTION CAMPAIGN FOR PROVIDING SPECIAL ACCESS TO INDUSTRIES LOOKING TO KILL REGULATIONS ESPECIALLY THOSE PROPOSED BY THE ENVIRONMENTAL PROTECTION AGENCY THE NEW SYSTEM WOULD ALSO GUARANTEE THAT THE VICE PRESIDENT PLAYED A MAJOR ROLE IN REGULATIONS BUT GIVEN MR GORE'S ENVIRONMENTAL BENT THE RULES THAT EMERGE FROM THE PROCESS WOULD LIKELY GIVE MORE EMPHASIS TO ENVIRONMENTAL CONCERNS AND LESS TO COST THAN THE BUSH ADMINISTRATION THE VICE PRESIDENT ACCORDING TO MS KATZEN WOULD HELP TO SET THE ADMINISTRATION'S REGULATORY PRIORITIES AND REFEREE DISPUTES THAT ARISE AMONG CABINET SECRETARIES ULTIMATELY SHE SAID THOSE DISPUTES SHE ESTIMATED THERE WOULD BE SIX TO 12 A YEAR WOULD BE SETTLED BY MR CLINTON BASED ON MR GORE'S RECOMMENDATIONS BUT MS KATZEN SAID THE ADMINISTRATION WANTED TO DEFUSE POTENTIAL DISPUTES FROM THE BEGINNING SHE ENVISIONED MEETINGS WHERE VARIOUS CABINET AGENCIES WOULD LIST THEIR REGULATORY PRIORITIES WITH THE HELP OF MR GORE THE ADMINISTRATION COULD THEN SET ITS OVERALL REGULATORY AGENDA STAFF AT OIRA WOULD THEN WORK CLOSELY WITH THE AGENCIES ON DEVELOPING THE MOST IMPORTANT RULES THE OBJECTIVE IS TO IDENTIFY BIG ISSUES EARLY ON SHE SAID DURING THE BUSH ADMINISTRATION SHE SAID OIRA STAFFERS WOULD BE CALLED IN TO REVIEW RULES ONLY AFTER THEY HAD GONE THROUGH LABORIOUS DRAFTING SESSIONS AND ANALYSES AT THE AGENCIES AS A RESULT OIRA RECOMMENDATIONS WERE OFTEN SEEN AS INTRUSIVE AND UNWELCOME UNDER THE NEW SYSTEM SHE SAID OIRA WOULD GET INVOLVED MUCH EARLIER IN ORDER TO GIVE COHESION TO THE ADMINISTRATION'S REGULATORY PROGRAM AND TO HEAD OFF CONFLICT 9308040082 930804 IRS PROBE OF SNOOPING BY EMPLOYEES WILL BE FOCUS OF SENATE PANEL HEARING BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MORE THAN 350 INTERNAL REVENUE SERVICE EMPLOYEES HAVE BEEN INVESTIGATED FOR ALLEGEDLY SNOOPING THROUGH THE COMPUTERIZED TAX ACCOUNTS OF FRIENDS RELATIVES NEIGHBORS AND CELEBRITIES A REPORT ON THE INCIDENTS PREPARED LAST OCTOBER BY INTERNAL IRS INVESTIGATORS AND RELEASED THIS WEEK BY SEN JOHN GLENN D OHIO ALSO CITES EVIDENCE THAT AT LEAST SIX IRS EMPLOYEES USED AGENCY COMPUTERS TO PREPARE FRAUDULENT RETURNS FOR TAXPAYERS MR GLENN SAID HE LEARNED THAT IN ONE INSTANCE AN IRS EMPLOYEE GOT INTO A DATABASE TO PREPARE MORE THAN 200 SHAM TAX RETURNS THE PAYOFF CAME WHEN THE EMPLOYEE RECEIVED KICKBACKS FROM THE BOGUS REFUND CHECKS THAT WERE ISSUED MR GLENN IS THE CHAIRMAN OF THE SENATE GOVERNMENTAL AFFAIRS COMMITTEE WHICH PLANS TO HOLD A HEARING INTO THE MATTER TODAY IRS COMMISSIONER MARGARET RICHARDSON IS SCHEDULED TO TESTIFY ELLEN MURPHY AN ASSISTANT TO MS RICHARDSON SAID THE IRS ALREADY HAS BEGUN TAKING STEPS TO ENSURE THAT ITS COMPUTER SYSTEM CAN'T BE ABUSED SO EASILY THERE IS NOTHING MORE SERIOUS TO THE IRS THAN WHEN THE HEART OF THE INTEGRITY OF THE TAX SYSTEM IS IN QUESTION SHE SAID SO FAR THE IRS INVESTIGATION HAS FOCUSED ON THE AGENCY'S SOUTHEAST REGION BUT THE REPORT DESCRIBED IN YESTERDAY'S WASHINGTON POST SAID SMALLERSCALE REVIEWS HAVE SIMILARLY FOUND THAT EMPLOYEES IN THE NORTH ATLANTIC AND WESTERN REGIONS ARE BROWSING TAXPAYER ACCOUNTS FOR NO CLEAR BUSINESS PURPOSE OF THE 369 EMPLOYEES IN THE SOUTHEAST WHO WERE INVESTIGATED 154 HAVE BEEN DISCIPLINED AT THIS POINT FIVE OF THE EMPLOYEES ARE FACING PROSECUTION AND CRIMINAL CHARGES ARE BEING CONSIDERED FOR 80 OTHERS FOLLOWING PRELIMINARY INQUIRIES NATIONWIDE AN ADDITIONAL 100 INDIVIDUALS ARE BEING INVESTIGATED FOR UNAUTHORIZED ACCESS TO TAXPAYER INFORMATION ABOUT 56000 OF THE IRS'S 115000 EMPLOYEES ARE CLEARED TO TAP INTO THE INTEGRATED DATA RETRIEVAL SYSTEM WHICH FOR THE PAST 20 YEARS HAS BEEN THE AGENCY'S PRIMARY COMPUTER NETWORK FOR ACCESSING AND ADJUSTING TAXPAYER ACCOUNTS ONCE THE IRS FINISHES OVERHAULING ITS VAST COMPUTER NETWORK IT WILL BE MUCH FASTER TO TRACE WHO HAS GONE INTO THE SYSTEM AND FOR WHAT PURPOSE AS SOON AS THE SERVICE CAN GET MODERN COMPUTERS IT WILL BE EASIER TO PREVENT AN OCCURRENCE OF SOMETHING LIKE THIS SAID SHIRLEY PETERSON A FORMER IRS COMMISSIONER HOWEVER THE IRS'S MODERNIZATION PROGRAM ISN'T SLATED TO BE COMPLETED UNTIL THE END OF THE CENTURY WE'RE OBVIOUSLY NOT GOING TO WAIT TO ENHANCE SECURITY MS MURPHY SAID A REPORT LIKE THIS SOUNDS THE ALARM BELL FOR EVERYONE ADDED JEROLD COHEN WHO SERVED AS CHIEF COUNSEL AT THE IRS DURING THE CARTER ADMINISTRATION OTHERS PRAISED THE IRS'S INTERNAL INVESTIGATION UNIT FOR UNEARTHING THE MISCONDUCT IT LOOKS LIKE THE INTERNAL AUDITORS ARE DOING WHAT THEY'RE SUPPOSED TO BE DOING GOING IN AND FINDING OUT IF THERE IS A PROBLEM SAID MIKE MURPHY WHO WAS IRS DEPUTY COMMISSIONER FROM 1987 UNTIL 1992 FRED GOLDBERG WHO SERVED AS IRS COMMISSIONER UNDER PRESIDENT BUSH SAID THE AGENCY IS DOING RIGHT BY COMING CLEAN BUT SEN GLENN EVIDENTLY ISN'T SATISFIED THAT THE IRS IS DOING ENOUGH YESTERDAY HE ASKED THE TREASURY DEPARTMENT'S DEPUTY INSPECTOR GENERAL ROBERT CESCA TO BE PREPARED TO ASSIST IN INVESTIGATING THIS AREA HE ALSO ASKED MS RICHARDSON TO EXPAND THE INQUIRY DESPITE MR GLENN'S SUDDEN INTEREST IN THE ISSUE IT'S NOT ENTIRELY NEW BACK IN APRIL THE TREASURY INSPECTOR GENERAL HIGHLIGHTED THE INTERNAL IRS INVESTIGATION IN ITS SEMIANNUAL REPORT TO CONGRESS 9308040081 930804 KMART PLACES PAY LESS UNIT UP FOR AUCTION COMPANY IS HOPING TO GET AS MUCH AS 1 BILLION FOR DRUGSTORE CHAIN BY JACQUELINE DOHERTY AND GEORGE ANDERS STAFF REPORTERS OF THE WALL STREET JOURNAL KMART CORP HAS PUT ITS PAY LESS DRUGSTORES UNIT ON THE AUCTION BLOCK AND HOPES TO SELL IT FOR AS MUCH AS 1 BILLION ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION MERRILL LYNCH & CO IS CONDUCTING THE AUCTION WHICH INVOLVES A HANDFUL OF BIDDERS KMART AND MERRILL LYNCH OFFICIALS DECLINED TO COMMENT BUT PEOPLE CLOSE TO THE SITUATION SAID KMART WAS SEEKING BUYERS FOR THE UNIT IN BOTH RETAILING AND ON WALL STREET INCLUDING LEVERAGEDBUYOUT SPECIALISTS OFFICIALS AT KMART BASED IN TROY MICH HAVE SAID THEY BELIEVE THE COMPANY'S SPECIALTYSTORE OPERATIONS ARE UNDERVALUED AFTER THE COMPANY'S ANNUAL MEETING IN MAY KMART CHAIRMAN JOSEPH ANTONINI TOLD REPORTERS THAT KMART WAS CONSIDERING SELLING MINORITY INTERESTS IN SOME OF THE SPECIALTY UNITS ANALYSTS HAVE SINCE SPECULATED KMART MIGHT SELL SOME OF THE UNITS TO THE PUBLIC IN AN INITIAL PUBLIC OFFERING IN ADDITION TO PAY LESS A MAJOR DRUGSTORE CHAIN IN THE WESTERN US THE SPECIALTY UNITS INCLUDE THE PACE WAREHOUSE CLUB CHAIN BUILDERS SQUARE HOME IMPROVEMENT STORES SPORTS AUTHORITY SPORTING GOODS STORES OFFICEMAX OFFICE SUPPLY STORES AND THE WALDENBOOKS CHAIN KMART WHICH ALSO OPERATES THE KMART DISCOUNT CHAIN IS THE NATION'S SECONDLARGEST RETAILER KMART HAS WARNED THAT EARNINGS FOR THE FISCAL SECOND QUARTER ENDED JULY 28 AND THE CURRENT FISCAL YEAR WILL FALL SHORT OF YEAREARLIER RESULTS BECAUSE OF WEAK APPAREL SALES AND LOSSES AT ITS PACE WAREHOUSE CLUB UNIT IN LAST YEAR'S SECOND QUARTER THE COMPANY EARNED 168 MILLION OR 37 CENTS A SHARE IN ALL OF 1992 IT EARNED 941 MILLION OR 206 A SHARE STANDARD & POOR'S CORP RECENTLY REVISED ITS OUTLOOK ON THE COMPANY TO NEGATIVE FROM STABLE CITING THE COMPANY'S SLUGGISH RESULTS THE RATING AGENCY SAID THAT KMART IS GETTING GOOD RESULTS FROM ITS AMBITIOUS AND EXPENSIVE PROGRAM TO RENOVATE AND EXPAND ITS CORE DISCOUNT STORES BUT ADDED THAT THE COMPANY IS ONLY HALFWAY THROUGH THE EFFORT AND THAT THE PACE AND BUILDERS SQUARE OPERATIONS HAVE BEEN A SIGNIFICANT DRAG ON PROFITS 9308040080 930804 BUSINESS BRIEF VOLKSWAGEN AG CHAIRMAN QUALIFIES FORECAST OF BREAKEVEN 1993 RESULTS VOLKSWAGEN AG CHAIRMAN FERDINAND PIECH QUALIFIED HIS PREDICTIONS THAT THE GERMAN AUTO MAKER WILL BREAK EVEN IN 1993 THE PROFIT FORECAST MR PIECH SAID ASSUMES THAT VW'S CAR SALES WILL FALL ONLY 10 TO 12 BELOW 1992 LEVELS AND THAT OVERALL REVENUE WILL FALL ONLY 5 FROM 1992 IT IS CLEAR THAT OUR PROFIT PREDICTIONS CANNOT BE MET IF THE DROP IN TURNOVER IS STEEPER MR PIECH TOLD HANDELSBLATT A GERMAN BUSINESS NEWSPAPER IN THE FIRST SIX MONTHS OF THE YEAR VW HAD A 225 DROP IN UNIT CAR SALES FEW AUTO INDUSTRY ANALYSTS EXPECT A SUBSTANTIAL RECOVERY OF THE MARKET IN THE SECOND HALF 9308040078 930804 ZALE'S CHAIRMAN RESIGNS POSTS IN SURPRISE MOVE EXECUTIVE QUITS DAYS AFTER FIRM EXITS CHAPTER 11 OUTSIDER TO BE SOUGHT BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS TWO BUSINESS DAYS AFTER ZALE CORP EMERGED FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS DEAN GROUSSMAN THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE SINCE LAST SEPTEMBER ABRUPTLY RESIGNED THE REASONS BEHIND THE SURPRISE ANNOUNCEMENT WEREN'T IMMEDIATELY CLEAR NEITHER MR GROUSSMAN 55 YEARS OLD NOR MEMBERS OF THE NEW BOARD COULD BE REACHED FOR COMMENT HOWEVER MR GROUSSMAN'S APPOINTMENT TO THE POST HAD BEEN A MATTER OF CONSIDERABLE CONTROVERSY AMONG CREDITOR GROUPS BECAUSE OF HIS LIMITED EXPERIENCE IN THE JEWELRY BUSINESS AND LAST MONTH AFTER DISAPPOINTING SPRING SALES THE NATION'S LARGEST JEWELRY RETAILER TRIMMED BACK ITS ESTIMATE OF OPERATING EARNINGS FOR FISCAL 1994 TO BETWEEN 61 MILLION AND 66 MILLION FROM A MARCH ESTIMATE OF 86 MILLION MR GROUSSMAN HAD BEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CANADIAN TIRE INC TORONTO HE PREVIOUSLY HAD BEEN WITH ZALE FROM 1979 TO 1985 UNDER TERMS OF MR GROUSSMAN'S EMPLOYMENT CONTRACT WHICH EXPIRED ON JULY 30 THE DAY ZALE EMERGED FROM BANKRUPTCY THE EXECUTIVE RECEIVES 250000 IN SEVERANCE PAY IF HE AND THE BOARD FAIL TO REACH A NEW EMPLOYMENT AGREEMENT WITHIN 90 DAYS OF THE COMPANY'S EMERGING FROM BANKRUPTCY ZALE CORP IN A WRITTEN STATEMENT SAID ITS BOARD WILL HIRE AN OUTSIDE EXECUTIVE SEARCH FIRM TO HELP IT FIND A NEW CHIEF EXECUTIVE NOT PREVIOUSLY ASSOCIATED WITH EITHER ZALE JEWELRY OR GORDON JEWELRY THE COMPANY'S TWO PRINCIPAL UNITS THAT CAVEAT SEEMS TO ELIMINATE SEVERAL PARTIES WHO HAD BEEN CLOSELY INVOLVED WITH THE COMPANY IN THE PAST AND WHO HAD PROPOSED OR BEEN INVOLVED IN ALTERNATIVE RESTRUCTURING PLANS INCLUDING ZALE FAMILY MEMBERS SUCH AS DONALD ZALE AND BRUCE LIPSHY AND FORMER ZALE OR GORDON OFFICERS SUCH AS LEO FIELDS AND BROTHERS DANIEL AND JAMES GORDON IN THE INTERIM ANDREAS LUDWIG THE 33YEAROLD CHIEF FINANCIAL OFFICER WILL OVERSEE DAYTODAY OPERATIONS THE COMPANY SAID MR LUDWIG DIDN'T RETURN CALLS SEEKING COMMENT EDWARD WIESFELNER AN ATTORNEY WHO REPRESENTED GORDON JEWELRY CREDITORS WHO AGREED RELUCTANTLY TO MR GROUSSMAN'S APPOINTMENT CALLED THE TIMING OF HIS DEPARTURE MORE SURPRISING THAN THE ACTUAL DEPARTURE WE'D EXPECTED A CAREFUL REVIEW OF HIS POSITION BY THE NEW BOARD HE SAID ADDING THAT HE WAS ENCOURAGED THAT THE BOARD HAD ACTED QUICKLY AND DEFINITIVELY THE BOARD ONLY TOOK THEIR SEATS FRIDAY BUT THEY HAD BEEN MEETING INFORMALLY AMONGST THEMSELVES FOR THE LAST COUPLE OF MONTHS HE SAID ACCORDING TO A COMPANY DISCLOSURE STATEMENT THE BOARD'S INITIAL CHARGE WAS TO REVIEW THE COMPANY'S MANAGEMENT TEAM AND MAKE ANY NEEDED CHANGES TO BEST IMPLEMENT THE REORGANIZED ZALE'S BUSINESS PLAN ANALYSTS SAID THEY DON'T CONSIDER MR GROUSSMAN'S DEPARTURE TO HAVE ANY SERIOUS ADVERSE IMPLICATIONS FOR SHAREHOLDERS SEPARATELY ZALE SAID IT HASN'T NAMED A REPLACEMENT FOR MARTIN S ACKERMAN ONE OF ITS NEW BOARD MEMBERS MR ACKERMAN CHAIRMAN OF STANDARD BRANDS PAINT CO DIED MONDAY AT THE AGE OF 61 9308040077 930804 LETTERS TO THE EDITOR AN ALARMING REPORT ON OFFICE BURGLARIES IN YOUR JULY 13 ENTERPRISE COLUMN YOU STATED A 2 1/2YEAR STUDY BY TEMPLE UNIVERSITY CONCLUDES THAT BUSINESSES LOCATED FARTHER FROM BUSY AREAS ARE MORE LIKELY TO BE BURGLARIZED THE REMEDY THEY SHOULD HAVE ALARMS' THE ARTICLE ALLUDES TO THE OBVIOUSNESS OF OUR CONCLUSIONS OUR STUDY AND THE NEWS RELEASE YOU RECEIVED STATE THAT THIS FINDING IS THE REVERSE OF THE PATTERN OF RESIDENTIAL BURGLARY RETAIL STORES AND SINGLE OFFICE BUILDINGS HAVE A HIGHER RISK OF BEING BURGLARIZED THAN SOLEOCCUPANT COMMERCIAL BUILDINGS AND ESTABLISHMENTS IN STRIP OR ENCLOSED MALLS HAVING AN ALARM SYSTEM REDUCES THE PROBABILITY 50 BUSINESSES THAT HAD PREVENTIVE DEVICES OTHER THAN AN ALARM HAD A 35 HIGHER RATE THAN BUSINESSES THAT HAD ALARMS WITH NO OTHER PRECAUTIONS THUS ALARMS ON THEIR OWN APPEAR EFFECTIVE FOR COMMERCIAL ESTABLISHMENTS UNLIKE RESIDENTIAL PROPERTIES A SIGNIFICANTLY LARGE SHARE OF BURGLARIES OCCUR AT COMMERCIAL ESTABLISHMENTS THAT HAVE BEEN IN BUSINESS LESS THAN ONE YEAR THIS IS PARTICULARLY TRUE FOR RETAIL STORES AND MORE SO FOR THOSE LOCATED IN AFFLUENT AREAS INDICATING THE ATTRACTIVENESS OF NEW MERCHANDISE THAT HAS A HIGH FENCE VALUE 9308040076 930804 WHO'S NEWS GUESS FOUNDER QUITS AS CHAIRMAN AND CEO SELLS STAKE TO BROTHERS LOS ANGELES GUESS INC FOUNDER GEORGES MARCIANO 46 YEARS OLD UNEXPECTEDLY RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND IS SELLING HIS 40 STAKE IN THE CLOSELY HELD COMPANY TO HIS BROTHERS THE SUM WAS UNDISCLOSED GUESS DECLINED TO EXPLAIN THE REASON FOR MR MARCIANO'S DEPARTURE HE WILL BE SUCCEEDED BY HIS BROTHER MAURICE MARCIANO 44 YEARS OLD WHO TOGETHER WITH BROTHERS PAUL AND ARMAND CONTINUE THEIR OWNERSHIP OF GUESS THE COMPANY SAID IN A STATEMENT DESPITE HIS EXIT FROM GUESS GEORGES MARCIANO REMAINS CONNECTED TO THE GARMENT INDUSTRY THROUGH HIS RECENT PURCHASE OF A 20 STAKE IN CHEROKEE GROUP A SUNLAND CALIFBASED MAKER OF WOMEN'S APPAREL THAT RECENTLY EMERGED FROM CHAPTER 11 BANKRUPTCY REORGANIZATION IN A SECURITIES AND EXCHANGE COMMISSION FILING MR MARCIANO SAID THAT HE BOUGHT THE CHEROKEE SHARES FOR INVESTMENT PURPOSES CHEROKEE OFFICIALS DECLINED TO COMMENT FOUNDED IN 1981 GUESS BECAME ONE OF THE MOST POPULAR HIGHEND DESIGNER JEANS AND APPAREL BRANDS KNOWN FOR ITS SEXY ADVERTISING AND QUESTION MARK LOGO WITH ANNUAL SALES EXCEEDING 500 MILLION ACCORDING TO INDUSTRY ESTIMATES THE MARCIANO BROTHERS ALSO BECAME KNOWN FOR THEIR SEVENYEAR LEGAL BATTLE WITH THE NAKASH BROTHERS OWNERS OF JORDACHE ENTERPRISES INC WHO USED TO OWN A STAKE IN GUESS 9308040075 930804 NRC PLANS TO FINE VERMONT YANKEE CITES VIOLATIONS AT A PLANT KING OF PRUSSIA PA THE NUCLEAR REGULATORY COMMISSION PROPOSED FINING VERMONT YANKEE NUCLEAR POWER CORP 50000 FOR THREE ALLEGED VIOLATIONS AT ITS VERMONT YANKEE NUCLEAR PLANT IN VERNON VT THE NRC SAID IT CITED THE COMPANY FOR FAILING TO SHUT DOWN THE PLANT IN OCTOBER WHEN ONE CONTROL ROD ARRAY DID NOT MOVE INTO THE REACTOR CORE AT THE PROPER SPEED FAILING TO EVALUATE ADEQUATELY ALL TEST RESULTS TO ENSURE THAT ALL TEST REQUIREMENTS HAD BEEN MET AND FAILING TO DETERMINE THE CAUSE OF THE CONDITION AND THEN TAKE CORRECTIVE ACTION TO PREVENT ITS RECURRENCE THE NRC SAID THE SAFETY CONSEQUENCES OF THE FAILURE TO SHUT DOWN THE PLANT WERE MINIMAL BUT THAT THE AGENCY IS CONCERNED THAT NO IMMEDIATE ACTIONS WERE TAKEN TO IDENTIFY THE ROOT CAUSES OF THE DEFICIENCY AND PURSUE CORRECTION ACTIONS AND NO REPORTS WERE MADE TO THE NRC THE NRC SAID VERMONT YANKEE HAS SINCE CORRECTED THE PROBLEM WITH THE CONTROL RODS THE PLANT SUPPLIES POWER TO 13 NEW ENGLAND UTILITIES VERMONT YANKEE HAS 30 DAYS TO EITHER PAY THE PROPOSED FINE OR APPEAL IT JIM SINCLAIR A SPOKESMAN FOR VERMONT YANKEE SAID WE HAVEN'T HAD AN OPPORTUNITY TO FULLY EVALUATE THE REPORT THAT THE NRC HAS PROVIDED 9308040074 930804 LEISURE & ARTS BOOKSHELF WILD TALES RETREADING THE TEDDY SAGA BY JAMES M PERRY THE PUBLISHERS OF JOE MCGINNISS'S FIRST BOOK THE SELLING OF THE PRESIDENT BOASTED IN THE DUST JACKET THAT MR MCGINNISS IS KNOWN AND ADMIRED AS THE AUTHOR OF NONFICTION ACCOUNTS THAT READ AND MOVE THE READER LIKE FICTION MR MCGINNISS HAD INFILTRATED THE TEAM THAT WAS RUNNING RICHARD NIXON'S ADVERTISING CAMPAIGN AND EMERGED WITH SOME OF THE FUNNIEST AND MOST REVEALING ANECDOTES AND QUOTATIONS TO APPEAR IN A CAMPAIGN BOOK AND HE DID IT ALL IN 168 PAGES NOW 25 YEARS LATER HE IS BACK WITH A GREAT BLOB OF A BOOK THE LAST BROTHER THE RISE AND FALL OF TEDDY KENNEDY SIMON & SCHUSTER 626 PAGES 25 THAT CONTAINS ABSOLUTELY NONE OF THE REDEEMING QUALITIES THAT MADE HIS FIRST BOOK SUCH A LITTLE GEM IT'S NOT FUNNY MOST OF THE TIME IT'S JUST PLAIN MEAN AND IT'S NOT EVEN FAINTLY REVEALING BUT SOME THINGS DON'T CHANGE IT MAY READ A LITTLE LIKE FICTION OVER THE YEARS I HAVE WALLOWED IN KENNEDY BOOKS AND THIS HULKING VOLUME REMINDS ME OF A FAMILY REUNION OF ALL OF THE WRITERS HERE ONCE AGAIN WE MEET ALL OUR OLD FRIENDS WHO HAVE WRITTEN ABOUT THE KENNEDYS AND LIKE A REAL REUNION EVEN A COUPLE WE HAD FORGOTTEN ABOUT THE BOOK OPENS WITH WHAT I SUPPOSE IS INTENDED TO BE A TOUR DE FORCE 127 PAGES THAT'S JUST 41 PAGES SHORT OF HIS ENTIRE FIRSTBOOK ABOUT JACK KENNEDY'S FUNERAL IT SMACKS OF THE STANDARD WORK ON THE KENNEDY ASSASSINATION WILLIAM MANCHESTER'S SOLEMN THE DEATH OF A PRESIDENT IT MOVES ON TO A REHASH OF THE REARING OF THE NINE KENNEDY CHILDREN BASED FOR THE MOST PART ON EARLIER WORKS BY DORIS KEARNS GOODWIN AND JAMES MACGREGOR BURNS AND THEN WHEN WE BLUNDER ON TO TED KENNEDY'S FIRST SENATE CAMPAIGN HOW NICE TO MEET BOSTON UNIVERSITY'S MURRAY LEVIN AGAIN HE WROTE A SPLENDID BOOK KENNEDY CAMPAIGNING ABOUT THAT RACE AND WE HAD ALMOST FORGOTTEN ABOUT IT IT IS REPRISED HERE MR MCGINNISS'S BOOK POINTS OUT EARLY ON ONCE WE GET PAST THE FUNERAL THAT THE KENNEDY FAMILY HAS ENDURED UNPARALLELED TRIALS AND TRAGEDIES WE ARE REMINDED THAT ONE OF JOE AND ROSE KENNEDY'S NINE CHILDREN WAS BLOWN TO SMITHEREENS IN A MIDAIR EXPLOSION IN WORLD WAR II THAT ANOTHER WAS LOBOTOMIZED AND CONSIGNED TO AN INSTITUTION THAT STILL ANOTHER DIED IN AN AIRPLANE CRASH AND THAT TWO MORE ONE A PRESIDENT AND THE OTHER A CANDIDATE FOR PRESIDENT WERE ASSASSINATED MR MCGINNISS WANTS US TO KNOW THAT TED KENNEDY THE LAST BROTHER HAS SHOWN WORRYING SIGNS OF INSECURITY I CAN'T TELL IF MR MCGINNISS HAS PLAGIARIZED THESE EARLIER CHRONICLERS OF THE KENNEDY DYNASTY OR NOT SOME OF THEM SAY SO AND HAVE BEGUN TALKING TO LAWYERS IT DOES STRIKE ME THAT WHAT WE HAVE HERE IS A SLIGHTLY HARASSED REWRITE MAN SURROUNDED BY BOOKS AND NOTES TRYING TO MAKE A LOT OF MONEY IN THE FACE OF A FASTAPPROACHING DEADLINE THE BOOK HASTILY WRITTEN USUALLY IN BREATHLESS PROSE SHOWS NO EVIDENCE OF BEING EDITED IT CONTAINS NEITHER FOOTNOTES NOR AN INDEX SO THE CASUAL READER HAS NO IDEA WHERE SOME OF THE BOOK'S WILDER FLIGHTS OF FANCY COME FROM AND WILD FLIGHTS THERE ARE MR MCGINNISS SETS OFF DOWN A CONSPIRACY TRAIL IN WHICH WE ARE TOLD THAT OLD JOE KENNEDY UNQUESTIONABLY A SCOUNDREL BUT IN THIS BOOK AN OMNIPOTENT ONE CUT A FAUSTIAN BARGAIN WITH MAFIA CHIEFTAINS YOU ELECT MY SON JACK PRESIDENT AND WE'LL DEPOSE FIDEL CASTRO AND GET THE CASINOS IN HAVANA HUMMING AGAIN HOW WAS THIS SUPPOSED TO WORK WE AREN'T REALLY TOLD SOMEHOW WE BEGIN TO IMAGINE MAFIOSI PROWLING THE HOLLOWS OF WEST VIRGINIA HANDING OUT BUNDLES OF CASH TO ENTICE RUGGED PROTESTANT MOUNTAINEERS TO VOTE FOR KENNEDY IT'S NONSENSE EVERYONE KNOWS OLD JOE KENNEDY SPENT A LOT OF HIS OWN CASH IN WEST VIRGINIA LEGALLY BUT NO ONE HAS EVER PROVEN THAT HE BROKE THE LAW THAT ALLEGATION WAS CHECKED OUT AT THE TIME BY ALL KINDS OF PEOPLE INCLUDING WALL STREET JOURNAL REPORTERS THEY DIDN'T REPORT A SINGLE MAFIOSO SIGHTING AND COULDN'T PRODUCE ANY EVIDENCE TO SHOW ILLEGAL CASH PAYMENTS KENNEDY CARRIED THE STATE WITH A SMASHING 61 OF THE VOTE ENDING HUBERT HUMPHREY'S 1960 PRESIDENTIAL ASPIRATIONS IN WEAVING HIS CONSPIRATORIAL WEB MR MCGINNISS EMPLOYS AN ABSOLUTELY MADDENING TECHNIQUE HE SETS UP THESE WILD TALES WITH A CERTAIN AMOUNT OF RESERVE PERHAPS THE THOUGHT OCCURRED TO SAM GIANCANA A MAFIA CHIEFTAIN THAT IN RETURN FOR MOB ASSISTANCE IN THE CAMPAIGN THE NEW PRESIDENT WOULD SEE TO IT THAT CASTRO WAS REMOVED HE WRITES BUT AS THE BOOK PROGRESSES THE PERHAPSES DISAPPEAR IT BECOMES ACCEPTED FACT THAT THE MOB WAS SIGNED ON TO PUT JOE'S BOY IN THE WHITE HOUSE AND IT BECOMES AN ACCEPTED FACT TOO THAT BOBBY KENNEDY PASSED ON TO TEDDY THE TRUTH ABOUT THE FAMILY'S ENTANGLEMENTS WITH THE MAFIA OF COURSE MR MCGINNISS SAYS THERE ARE NO RECORDS OF EXACTLY WHEN AND WHERE AND UNDER WHAT CONDITIONS BOBBY FIRST BEGAN TO SHARE THE WORST OF THE SECRETS WITH TEDDY HE ARGUES IT IS COMMON SENSE TO BELIEVE SUCH A PRIVATE CHAT TOOK PLACE THEREAFTER COMMON SENSE BECOMES ESTABLISHED FACT AND MR MCGINNISS INFORMS US THAT POOR IDEALISTIC TEDDY WAS BROKEN BY THESE AWFUL REVELATIONS THE CONSPIRACY THEORIES ARE ACCOMPANIED BY A PRODIGIOUS AMOUNT OF PSYCHOBABBLE IN WHICH MR MCGINNISS WHO DOESN'T KNOW TED KENNEDY AND NEVER INTERVIEWED HIM OR AS FAR AS I CAN TELL ANYONE ELSE FOR THIS BOOK PUTS HIMSELF INSIDE TED KENNEDY'S BRAIN SOMETIMES THE RESULTS ARE HILARIOUS SHORTLY AFTER JACK KENNEDY'S FUNERAL TED KENNEDY IS PICTURED AT LOOSE ENDS AT THE FAMILY COMPOUND IN HYANNISPORT IT MAY HAVE OCCURRED TO TEDDY SAYS MR MCGINNISS THAT IT WAS NO ACCIDENT THAT VODKA HAD BEEN DEVELOPED FIRST IN RUSSIA A VAST LAND WHERE THE WINTERS WERE LONG AND THE SADNESS RAN EVEN DEEPER THAN THE SNOWS HE TED KENNEDY WISHED THAT HE COULD BE WITH BOBBY HE WISHED THAT JACK WERE STILL ALIVE READERS WHO BUY THIS UNFORTUNATE BOOK WILL WISH THAT JOE MCGINNISS DIDN'T WRITE THIS WAY THE BOOK ENDS WITH A PEDESTRIAN AND FAMILIAR RECOUNTING OF THE DROWNING OF MARY JO KOPECHNE WHEN MR KENNEDY'S OLDSMOBILE VEERED OFF A BRIDGE ON CHAPPAQUIDDICK ISLAND AND DROPPED INTO A POND IN 1969 MORE THAN ANY MAFIA REVELATIONS THAT'S WHAT BROKE TED KENNEDY AS THE LAST LINK IN THE FAMILY'S CAREFULLY WORKED OUT CAMELOT LEGEND LIFE FOR TED KENNEDY HAS GONE ON SOMETIMES CHAOTICALLY SOMETIMES OUT OF CONTROL YET FOR ALL HIS PROBLEMS HE HAS BECOME ONE OF THE RANKING BARONS IN THE SENATE THE CHAMPION OF WHAT'S LEFT OF HIS PARTY'S LIBERAL WING HE IS SURELY A MORE IMPORTANT POLITICAL FIGURE HISTORICALLY THAN HIS BROTHER BOBBY HE IS BEGINNING TO RIVAL SIMPLY BY HARD WORK AND LONGEVITY THE ACHIEVEMENTS OF HIS BROTHER JACK IN THE WEEKS AHEAD FOR EXAMPLE TED KENNEDY A MUCH MORE SERIOUS SENATOR THAN EITHER OF HIS BROTHERS WILL PLAY A KEY ROLE IN DRAFTING THE CLINTON ADMINISTRATION'S HEALTHCARE LEGISLATION BUT THERE IS NONE OF THAT IN THIS BOOK PERHAPS MR MCGINNISS DISCOVERED THERE ARE NO UPTODATE BOOKS DEALING WITH THIS CRUCIAL AND SOMETIMES DULL AND COMPLICATED PART OF MR KENNEDY'S LIFE MR PERRY COVERS NATIONAL POLITICS OUT OF THE JOURNAL'S WASHINGTON BUREAU 9308040073 930804 MARKETING & MEDIA MAGAZINES' AD PAGES REVENUE FELL IN JULY NEW YORK THE PUBLISHERS INFORMATION BUREAU SAID MAGAZINE PUBLISHERS SAW DECLINES IN BOTH ADVERTISING REVENUE AND ADVERTISING PAGES IN JULY THE FIRST SUCH COMBINED DROP SINCE JANUARY 1992 FOR THE MONTH ADVERTISING REVENUE DECLINED 26 FROM A YEAR EARLIER TO 4543 MILLION ADVERTISING PAGES FOR JULY FELL 6 TO 9983 ADVERTISING REVENUE FOR THE FIRST SEVEN MONTHS OF THE YEAR WAS UP 63 FROM A YEAR EARLIER AT 408 BILLION THE NUMBER OF ADVERTISING PAGES WAS UP 16 IN THE FIRST SEVEN MONTHS TO 91456 PAGES THE BUREAU SAID THE MONTHLY DECLINE IN BOTH ADVERTISING REVENUE AND PAGES REFLECTED NOT ONLY A SOFT 1993 MARKET BUT ALSO A STRONG JULY 1992 PERFORMANCE IN THE INDUSTRY 9308040072 930804 ABREAST OF THE MARKET STOCKS RISE SLIGHTLY AMID SIGNS OF CONTINUED SLUGGISH ECONOMY BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STILL FURTHER EVIDENCE THAT THE ECONOMY IS STRUGGLING KEPT A LID ON STOCK PRICES DESPITE A RALLY IN THE BOND MARKET THAT SENT LONGTERM INTEREST RATES TO A 16YEAR LOW STOCK PRICES WERE BARELY CHANGED AS INVESTORS FOCUSED ON A COMMERCE DEPARTMENT REPORT SHOWING A 01 RISE IN THE INDEX OF LEADING INDICATORS THE INCREASE IN THE WIDELYFOLLOWED INDEX WAS LESS THAN MOST ANALYSTS EXPECTED THE DOW JONES INDUSTRIAL AVERAGE EDGED UP 028 TO 356127 WHILE STANDARD & POOR'S 500STOCK INDEX LOST 088 TO 44927 FALLING INTEREST RATES HELPED PROPEL THE DOW JONES UTILITY INDEX TO ITS SECOND CONSECUTIVE RECORD OF 25158 UP 013 ON THE BIG BOARD ADVANCING ISSUES OUTNUMBERED DECLINERS 1051 TO 920 VOLUME TOTALED 2529 MILLION SHARES UP FROM 2289 MILLION SHARES MONDAY DESPITE THE LACKLUSTER SHOWING GAIL DUDACK STOCK MARKET STRATEGIST AT SG WARBURG SAID SHE WAS ENCOURAGED BY THE PERFORMANCE OF THE DOW JONES UTILITY AVERAGE A FEW MONTHS AGO THERE WAS CONCERN THAT THE BOND MARKET HAD DONE SO WELL AND THE UTILITY AVERAGE HAD LAGGED SAID MS DUDACK BUT WITH THE UTILITY AVERAGE AT A RECORD SHE ADDED THAT PART OF WHAT'S HAPPENING IS THAT THE INTEREST RATE BACKDROP HAS IMPROVED GIVEN WHAT'S HAPPENED IN EUROPE'S EXCHANGE RATE MECHANISM AND THE ECONOMIC OUTLOOK IS BRIGHTENING SHE SAID THAT WHEN THE UTILITY AVERAGE HITS A NEW HIGH IT USUALLY SIGNALS THAT THE DOW INDUSTRIALS ARE AT LEAST FIVE MONTHS AWAY FROM A PEAK THOUGH MANY ANALYSTS THINK STOCKS ARE POISED TO ADVANCE THEY SAY THE MARKET IS LIKELY TO BE JITTERY UNTIL CONGRESS VOTES ON THE BUDGET BILL LATER THIS WEEK THERE IS SOME CONCERN ABOUT WHETHER THE DEFICIT REDUCTION PACKAGE WILL PASS CONGRESS SAID THOMAS GALLAGHER HEAD OF INSTITUTIONAL EQUITIES AT OPPENHEIMER HE SAID HE DOESN'T AGREE WITH THE ARGUMENT POPULAR AMONG SOME ANALYSTS THAT STOCK PRICES WILL RISE IF THE BUDGET ACCORD WITH ITS HEFTY TAX INCREASES IS DEFEATED I THINK IF THE PRESIDENT IS UNABLE TO GET THIS BILL THROUGH HE BECOMES INEFFECTIVE FOR THE NEXT THREEANDAHALF YEARS AND THAT'S NEGATIVE FOR THE MARKET HE SAID HE EXPECTS BOND PRICES TO TUMBLE IF THE BUDGET BILL IS DEFEATED AND THAT IN TURN WOULD PROBABLY DRAG STOCKS LOWER SOME BIG BLUECHIP STOCKS RALLIED ON HOPES THAT EUROPE'S MORE FLEXIBLE CURRENCY SYSTEM WILL PAVE THE WAY FOR A ROUND OF INTERESTRATE CUTS AND HELP STIMULATE THE ECONOMIES THERE CATERPILLAR JUMPED 1 3/4 TO 79 7/8 ALUMINUM CO OF AMERICA GAINED 1 3/4 TO 73 1/2 AND INTERNATIONAL PAPER EDGED UP 1/2 TO 64 5/8 OIL STOCKS SANK AS CRUDE OIL PRICES CONTINUED TO SLIP CHEVRON TUMBLED 1 3/4 TO 87 AND EXXON EASED 7/8 TO 65 1/8 DEPRESSING THE DOW INDUSTRIALS SIGNET BANKING JUMPED 1 5/8 TO 30 DONALDSON LUFKIN & JENRETTE ADDED THE STOCK TO ITS RECOMMENDED LIST AND UPGRADED THE RATING ON IT TO BUY FROM ATTRACTIVE GTE FELL 5/8 TO 35 3/4 GOLDMAN SACHS REMOVED THE STOCK FROM ITS RECOMMENDED LIST AND LOWERED ITS ESTIMATE OF 1993 EARNINGS FROM OPERATIONS BY 10 CENTS TO 215 A SHARE HARRIS CORP JUMPED 3 3/4 TO 42 7/8 THE MELBOURNE FLA SEMICONDUCTOR COMPANY SAID PROFIT SWELLED IN THE FOURTH QUARTER TO 95 CENTS A SHARE FROM 63 CENTS A SHARE A YEAR AGO LAST YEAR'S EARNINGS WERE DEPRESSED BY A LOSS FROM DISCONTINUED OPERATIONS HARRIS ADDED THAT IT FELT VERY POSITIVE ABOUT ITS OPERATING OUTLOOK FOR FISCAL 1994 SOLECTRON SKIDDED 3 5/8 TO 35 3/4 MERRILL LYNCH ANALYST MELINDA REACH LOWERED HER FOURTHQUARTER EARNINGS ESTIMATE FOR THE COMPANY TO 48 CENTS A SHARE FROM 52 CENTS POLYGRAM NV CLIMBED 1 5/8 TO 30 7/8 THE RECORD COMPANY'S PROFIT SOARED 19 IN THE FIRST HALF SURPASSING ANALYSTS' EXPECTATIONS IN ADDITION POLYGRAM SAID IT WILL ACQUIRE MOTOWN RECORDS FOR 301 MILLION UNISYS WAS ONE OF THE MOST ACTIVE STOCKS ON THE BIG BOARD RISING 3/8 TO 10 1/4 INTEL AND UNISYS ARE TEAMING UP IN THE RACE TO DEVELOP A FORM OF HIGHPERFORMANCE COMPUTING POWER KNOWN AS PARALLEL PROCESSING FOR THE COMMERCIAL MARKET MARGARETTEN FINANCIAL PLUNGED 1 TO 15 3/8 PRUDENTIAL SECURITIES ANALYST THOMAS O'DONNELL CUT HIS INVESTMENT RATING ON THE STOCK TO A NEARTERM HOLD FROM BUY HE ALSO REDUCED HIS 1993 EARNINGS ESTIMATE ON THE MORTGAGE BANKER TO 190 A SHARE FROM 195 A SHARE CHIQUITA BRANDS EDGED UP 1/8 TO 12 1/2 LATE MONDAY THE COMPANY REPORTED PROFIT OF 15 CENTS A SHARE FOR THE SECOND QUARTER REVERSING A YEAREARLIER LOSS OF 32 CENTS A SHARE AS PART OF A PROGRAM TO STRENGTHEN ITS BALANCE SHEET CHIQUITA SAID IT HAS CUT ITS QUARTERLY CASH DIVIDEND ON COMMON SHARES TO FIVE CENTS FROM 17 CENTS THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX FELL 059 OR 014 TO 43729 THERE WERE 295 DECLINERS AND 277 GAINERS 9308040071 930804 LEISURE & ARTS OPERA MRS DALLOWAY' BY HEIDI WALESON CLEVELAND AT THE CONCLUSION OF MRS DALLOWAY LIBBY LARSEN'S NEW OPERA BASED ON THE VIRGINIA WOOLF NOVEL THE TITLE CHARACTER CONTEMPLATED HER MUCHAWAITED EVENING PARTY AND MUSED I HAD HOPED TO HAVE DANCING DANCING OR SOMETHING EQUALLY FESTIVE MIGHT HAVE BEEN A GOOD IDEA AS IT WAS MS LARSEN AND LIBRETTIST BONNIE GRICE ELIMINATED THE PARTY AND TOOK ALL THE FUN OUT OF POOR CLARISSA DALLOWAY AT LYRIC OPERA CLEVELAND WHICH COMMISSIONED AND PREMIERED THE WORK RECENTLY BLOOMSBURY MET GERMAN EXPRESSIONISM AND GUESS WHO WON EVEN WITHOUT THE SMOTHERING WEIGHT OF THIS TEUTONIC BLANKET MAKING AN OPERA OUT OF WOOLF'S 1925 NOVEL WOULD HAVE BEEN A CHALLENGE EVENTS ARE FEW AND ONLY DISTANTLY RELATED THE STORY TAKES PLACE PRIMARILY IN THE HEROINE'S MIND SEVERAL OF THE PRINCIPAL CHARACTERS NEVER ACTUALLY MEET BUT MS GRICE A LOS ANGELES RADIO PERSONALITY AND NOVICE AT LIBRETTO WRITING COULDN'T RESIST SHE PERSUADED MICHAEL MCCONNELL THE EXECUTIVE DIRECTOR OF THE FEISTY LITTLE LYRIC OPERA CLEVELAND THAT THE NOVEL WAS OPERATIC AND HE RECRUITED MS LARSEN MS GRICE PRODUCED A TOME OF A SCRIPT WHICH WAS ULTIMATELY STREAMLINED INTO 90 MINUTES OF LANGUAGE TAKEN ALMOST VERBATIM FROM THE NOVEL A FEW CHARACTERS WERE DROPPED MORE IMPORTANTLY THE NOVEL'S ATMOSPHERE OF GENEROSITY AND EXPANSIVENESS EVAPORATED THE CREATORS SAY THEY WERE OPERATICALLY INSPIRED BY SCHOENBERG'S GRIM DIATRIBE ERWARTUNG MRS DALLOWAY ALSO MADE ME THINK OF OTHER MORBID MUSIC DRAMAS SUCH AS SWEENEY TODD THOUGH STEPHEN SONDHEIM LEFT PLENTY OF ROOM FOR DARK HUMOR IN HIS CANNIBAL HORROR SHOW THE UNRELIEVED MISERY OF MS LARSEN'S OPERA WAS ODD GIVEN ITS SUBJECT MATTER CLARISSA DALLOWAY A MIDDLEAGED LONDON MATRON LIKES TO GIVE PARTIES BRINGING PEOPLE TOGETHER IS HER GIFT AS A GIRL SHE HAD CHANCES FOR A MORE DARING LIFE A TITILLATING FLIRTATION WITH ANOTHER YOUNG WOMAN A PROPOSAL OF MARRIAGE FROM A ROMANTIC YOUNG MAN WHO ULTIMATELY WENT OFF TO INDIA BUT LIFE IN LONDON WITH A WEALTHY CONSERVATIVE POLITICIAN ACTUALLY SUITS HER BEST THE BOOK TAKES PLACE IN A SINGLE DAY AS MRS DALLOWAY PREPARES FOR HER PARTY THAT EVENING SHE LOOKS BACK ON HER PATHS NOT TAKEN HER FORMER SUITOR MATERIALIZES UNDONE IN LIFE BY HIS ROMANTIC NATURE BUT UNTOUCHED BY AGE MEANWHILE A YOUNG WORLD WAR I VETERAN SEPTIMUS WARREN SMITH IS HAVING A NERVOUS BREAKDOWN WHILE HIS WIFE LUCREZIA TRIES DESPERATELY TO HELP HIM A VISIT TO A PSYCHIATRIST ONLY MAKES MATTERS WORSE THE MAN THROWS HIMSELF FROM A WINDOW IN RECOUNTING THESE EPISODES MS LARSEN AND MS GRICE IMITATED WOOLF'S CROSSCUTTING TECHNIQUE AND PUT THE TWO STORIES ONSTAGE SIMULTANEOUSLY THIS DEVICE HAS BEEN TRIED BEFORE IN OPERA BUT WHEREAS IN ARIADNE AUF NAXOS STRAUSS LET THE COMEDIANS BE COMIC AND THE TRAGEDIANS BE TRAGIC MS GRICE AND MS LARSEN MADE THE WHOLE STORY GRIM EVEN MOMENTS THAT CALLED FOR LIGHTHEARTEDNESS WERE DARK AND MS LARSEN'S MUSICAL PALETTELOTS OF LOW STRINGS BASS CLARINET AND OMINOUS PERCUSSION WAS UNRELIEVEDLY SOMBER EARLY ON IN THIS OPERA MRS DALLOWAY STEPPED INTO THE STREET EN ROUTE TO BUY FLOWERS FOR HER PARTY AND SANG WHAT A MORNING FRESH AS IF ISSUED TO CHILDREN ON A BEACH THE MUSICAL SETTING SUGGESTED THAT IT WAS POURING RAIN AND WAR HAD BROKEN OUT WHEN CLARISSA AND SALLY SETON HAD THEIR BRIEF EROTIC ENCOUNTER IN FLASHBACK THE TEMPO WAS POSITIVELY DIRGELIKE THE GIMMICK OF CRAMMING ALL THE DRAMATIC EVENTS OF THE STORY TOGETHER ALSO CONTRIBUTED TO DRAINING THE OPERA OF CHARM NEVERTHELESS SOME OF THE EVENTS DID SURVIVE THIS TREATMENT CLARISSA'S REUNION WITH HER OLD SUITOR PETER WALSH TOOK FLIGHT AS THEIR DECOROUS WORDS AND THEIR PASSIONATE FEELINGS ALTERNATED MUSICALLY MS LARSEN CAN WRITE IDIOMATICALLY FOR VOICE WHEN SHE CHOOSES PERHAPS SHE HAD NO WAY OF AVOIDING THE ABSURDITY OF THE OPERA'S ENDING COULD A FUNDING SHORTFALL HAVE COMPELLED HER TO PUSH MRS DALLOWAY'S PARTY THE POINT OF THE STORY OFFSTAGE WE DID INDEED SEE CLARISSA AS SHE OVERHEARD THE NEWS ABOUT THE SUICIDE AND REACTED IN PAIN TO THE INCURSION OF DEATH INTO HER TIDY LITTLE WORLD BUT IN THE NOVEL THE PARTY IS ALSO HER SHINING HOUR THE DEMONSTRATION TO HER AND US THAT HER GIFT FOR BRINGING PEOPLE TOGETHER IS OF VALUE AT THE END OF THE OPERA SHE WAS ALONE AND THE OPERA SEEMED TO HAVE NO POINT IN PARTICULAR LYRIC OPERA CLEVELAND WHICH PRESENTS THREE OPERAS EVERY SUMMER IN THE 535SEAT KULAS HALL AT THE CLEVELAND INSTITUTE OF MUSIC CELEBRATED ITS 20TH ANNIVERSARY WITH MRS DALLOWAY AS IN YEARS PAST IT WORKED WITH YOUNG PERFORMERS AND KEPT PRODUCTION COSTS TO A MINIMUM THIS YEAR'S COMPANY BUDGET IS ONLY 650000 THE DALLOWAY CAST SANG AND ENUNCIATED HANDSOMELY BUT THE PRODUCTION LIKE THE OPERA COULD HAVE USED MORE SPARKLE STEVEN PERRY'S FUNCTIONAL TWOLEVEL UNIT SET STAIRS BEDROOM DOOR WINDOW EVOKED NOTHING IN PARTICULAR MRS DALLOWAY'S BELOVED LONDON LIKE HER PARTY WAS NOWHERE TO BE SEEN MR MCCONNELL'S DIRECTION TENDED TOWARD THE CLUNKY AND HISTRIONIC WHICH WAS PARTICULARLY UNFORTUNATE FOR MARY ELIZABETH POORE MRS DALLOWAY WHO DISPLAYED A LOVELY SOPRANO AND A LOT OF AWKWARD MOVEMENTS AND GARY BRIGGLE SEPTIMUS WHO FELL DOWN AND GRIMACED A GREAT DEAL BENTON HESS WAS THE EFFECTIVE CONDUCTOR OF THE SMALL ORCHESTRASTRING QUARTET AND BASS OBOE SAXOPHONE PERCUSSION AND KEYBOARDS MS WALESON IS A MUSIC WRITER IN NEW YORK 9308040070 930804 WORLD MARKETS NEW RATE CUTS PROPEL MANY EUROPEAN BOURSES SHARPLY HIGHER BUT PROFITTAKING CLIPS OTHERS A WALL STREET JOURNAL NEWS ROUNDUP STOCKS ON MANY EUROPEAN BOURSES JUMPED YESTERDAY AS SOME RATE CUTS BEGAN TO EMERGE FROM THE FOREIGNEXCHANGE SHAKEUP THOUGH SOME MARKETS WERE HIT BY PROFITTAKING FRANKFURT SHARES SOARED 16 AS A RALLY IN BOND MARKETS AGAIN MORE THAN OFFSET BEARISH EFFECTS OF THE APPRECIATING GERMAN CURRENCY ON EQUITIES BONDS ADVANCED AFTER THE GERMAN CENTRAL BANK UNEXPECTEDLY CUT AN INTEREST RATE THIS FUELED EXPECTATIONS OF A GERMAN MONETARY EASING THAT COULD HELP IGNITE A EUROPEAN ECONOMIC RECOVERY BUT ALSO CAUSED CONFUSION ABOUT WHETHER IT WAS MERELY A TECHNICAL MOVE AMONG OTHER STRONG PERFORMERS WERE AMSTERDAM UP 15 ZURICH UP 13 AND STOCKHOLM UP 12 BUT MADRID'S RALLY ENDED DESPITE A SPANISH RATE CUT AS INVESTORS TOOK PROFITS LONDON STOCKS WERE MIXED TO NARROWLY HIGHER IN QUIET TRADING AND PARIS EQUITIES ALSO SUCCUMBED TO PROFITTAKERS TOKYO SHARES ENDED A BIT HIGHER TUESDAY AFTER INVESTORS SNAGGED PROFITS AND SAPPED MOST OF THE GAINS FROM A STRONG OPENING RALLY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10933 UP 019 REFLECTING INCREASES IN EUROPEAN AND ASIA/PACIFIC MARKETS AND A DROP IN THE AMERICAS SHIPBUILDING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10366 UP 333 OR 33 WITH FAR EASTLEVINGSTON SHIPBUILDING OF SINGAPORE POSTING A 95 GAIN IN ITS LOCAL CURRENCY PRECIOUS METALS STOCKS TRAILED AT 15074 DOWN 291 OR 19 WITH ECHO BAY MINES OF CANADA SLIDING 41 IN LOCAL CURRENCY IN FRANKFURT THE DAX 30STOCK INDEX CLIMBED 2835 POINTS TO 184343 NEAR THE SESSION'S PEAK OF 184571 AND THE 1993 CLOSING HIGH OF 185452 OF THE DAX STOCKS 27 ADVANCED AND 3 DECLINED BONDS RALLIED AFTER THE GERMAN BUNDESBANK ALLOCATED SECURITIES REPURCHASE AGREEMENTS AT A FIXED 68 RATE LOWER THAN THE 695 RATE ANNOUNCED THURSDAY THE STRONGER BOND PRICES HELD UP A STOCK MARKET THAT HAD BEEN EXPECTED TO FALL GIVEN THE GERMAN MARK'S SHARP APPRECIATION AGAINST OTHER EUROPEAN CURRENCIES ESPECIALLY THE FRENCH FRANC FOLLOWING THE MONDAY LOOSENING OF PERMISSIBLE TRADING RANGES IN THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 33 POINTS TO 29450 THE FT 30STOCK INDEX EDGED UP 10 POINT TO 23000 VOLUME WAS 7997 MILLION SHARES UP FROM 6979 MILLION SHARES A DAY EARLIER THE FT 100 EASED EARLY IN THE DAY BUT ROSE TO A MIDDAY HIGH OF 29473 ATTENTION CONTINUED TO FOCUS ON INTERESTRATESENSITIVE STOCKS INVESTORS WERE DESCRIBED AS POISED TO LEAP INTO A RESUMPTION OF THE MARKET'S RECENT RALLY ONCE THE EUROPEAN RATECUT BANDWAGON GETS ROLLING RATE CUTS YESTERDAY IN SPAIN AND THE NETHERLANDS ENCOURAGED THE LONDON BOURSE WHICH ALSO BENEFITED FROM POSITIVE EARNINGS IN THE BANKING SECTOR IN PARIS AS EXPECTED INVESTORS CASHED IN ON THE MARKET'S SHARP GAINS IN THE PREVIOUS THREE SESSIONS AND STOCKS FINISHED SOLIDLY LOWER BUT THE CONSENSUS WAS THAT THE BASIS FOR FURTHER ADVANCES WAS IN PLACE AS THE EMS CRISIS HAD ROCKETED THE EXCHANGE'S TRADING RANGE TO A THREEYEAR HIGH AND TECHNICAL SIGNALS WERE POSITIVE FOR STOCKS IN AMSTERDAM SHARE PRICES JUMPED TO NEW PEAKS FOLLOWING DUTCH AND GERMAN INTERESTRATE CUTS DUTCH BONDS' STEEP GAINS AND POSITIVE CORPORATE EARNINGS FOR NETHERLANDS COMPANIES DUTCH FINANCIAL SHARES WERE ESPECIALLY BUOYED BY THE RATE NEWS BUT SOME BLUE CHIPS WITH LARGE US EXPOSURE FELL ON THE LOWER DOLLAR IN MILAN BUYING OUTWEIGHED SELLOFFS IN SOME SECTORS WITH FOREIGN INTEREST FOCUSED ON TELECOMMUNICATIONS BECAUSE OF PERSISTING PRIVATIZATION HOPES AND THE MARKET SCORED A SHARP GAIN AT THE END BUT IN MADRID PROFITTAKING ENDED THE BOURSE'S WEEKLONG RALLY A SURGE OF ALMOST 4 AND SHARE PRICES SLIPPED EVEN THOUGH THE BANK OF SPAIN REDUCED ITS BENCHMARK INTEREST RATE TO 105 FROM 11 THE CUT HAD BEEN DISCOUNTED LAST WEEK ON EXPECTATIONS OF A SPANISH PESETA DEVALUATION OR DEPARTURE FROM THE ERM STOCKHOLM SHARE PRICES ADVANCED IN HEAVY TRADING TO YET ANOTHER NEW HIGH FOR THIS YEAR HEAVY FOREIGN DEMAND HELPED REVERSE A WEAK OPENING AND EXTEND THE MARKET'S WINNING STREAK TO NINE CONSECUTIVE SESSIONS AND IN ZURICH PRICES SURGED AS PROSPECTS FOR LOWER EUROPEAN RATES UNLEASHED A BUYING FLURRY THE RALLY BEGAN IN SHARES SENSITIVE TO RATES SUCH AS BANKING AND INSURANCE ISSUES THEN SPREAD TO OTHER SECTORS MOST NOTABLY CHEMICALS AND FINALLY ENGULFED THE MARKET THE RATE CUTS THAT BEGAN IN EMS COUNTRIES WERE EXPECTED TO SPREAD GIVING NONERM MEMBERS SUCH AS SWITZERLAND ROOM TO FOLLOW SUIT IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 3661 POINTS MONDAY ENDED UP 1411 TO 2035764 WHICH ALSO WAS THE INTRADAY LOW ON WEDNESDAY THE NIKKEI ROSE 12211 POINTS TO CLOSE THE MORNING SESSION AT 2047975 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 270 MILLION SHARES UP FROM 2165 MILLION SHARES MONDAY GAINERS OUTNUMBERED LOSERS 500430 THE TOKYO STOCK PRICE INDEX OR TOPIX WHICH DROPPED 512 POINTS MONDAY ADDED 243 TO 165722 TOKYO PRICES SURGED 12 IN THE FIRST 20 MINUTES OF TRADING AS INDEX FUTURES BUYING LED THE STOCK MARKET HIGHER AND THE NIKKEI PEAKED AT 20599 ABOUT 40 MINUTES INTO THE SESSION BUT PRICES THEN MOVED STEADILY LOWER WITH THE PACE OF DECLINES ACCELERATING LATE IN THE SESSION THE OPENING ENTHUSIASM WAS ATTRIBUTED TO STRONG CLOSINGS MONDAY OF NIKKEI FUTURES IN CHICAGO AND MAJOR OVERSEAS BOURSES BUT THE PERVASIVE CAUTION WAS LINKED TO THE RESURGENT JAPANESE CURRENCY WHICH TOUCHED YET ANOTHER RECORD HIGH AGAINST THE US DOLLAR THE MAIN GAINERS SUCH AS BANKING AND FINANCIAL ISSUES AND OIL REFINERS WERE TIED TO TWO THEMES EXPECTED LOWER INTEREST RATES AND BENEFICIAL EFFECTS OF THE STRONGER YEN WHILE THE BIGGEST LOSERS WERE EXPORTORIENTED BLUE CHIPS AND OTHERS THAT COULD BE HURT BY THE SOARING JAPANESE YEN OVERSEAS INVESTORS BOUGHT SHARES AIMING TO CAPTURE FURTHER APPRECIATION IN BOTH SHARE PRICES AND THE YEN VS THEIR HOME CURRENCIES IN SINGAPORE STOCKS RALLIED 17 IN MODERATELY HEAVY DEALINGS LED UP BY BLUE CHIPS ON BROADLY OPTIMISTIC SENTIMENT IN HONG KONG SHARES SURGED TO THEIR HIGHEST LEVEL IN A MONTH FUELED BY GAINS IN THE TELECOMMUNICATIONS AND BANKING SECTORS SEOUL SHARES ROSE ENDING SIX STRAIGHT SESSIONS OF DECLINES ON EXPECTATIONS OF IMPROVED ECONOMIC COOPERATION WITH NORTH KOREA WELLINGTON STOCKS STRENGTHENED REACHING THE HIGHEST CLOSING LEVEL IN THREE YEARS AS INVESTOR SENTIMENT WAS HELPED BY HIGHER WALL STREET PRICES 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 9308040069 930804 NOTABLE & QUOTABLE FROM THE ALMANAC OF AMERICAN POLITICS 1994 BY MICHAEL BARONE AND GRANT UJIFUSA JUST PUBLISHED BY THE NATIONAL JOURNAL IT HAD BEEN CONFIDENTLY ASSERTED BY VARIOUS POLITICAL STRATEGISTS THAT PUBLIC SUPPORT FOR HIGHER TAXES ON THE RICH COULD BE USED TO RALLY SUPPORT FOR THE CLINTON PACKAGE BUT AS ALWAYS IN AMERICAN HISTORY MOST VOTERS CARE MUCH LESS ABOUT PUNISHING THE RICH THAN ABOUT REWARDING THE MIDDLE CLASS AND STRENGTHENING THE ECONOMY SUPPORT FOR REDISTRIBUTIVE ECONOMICS HAS NEVER RALLIED A MAJORITY EVEN IN THE 1930S POLLS SHOW THAT FRANKLIN ROOSEVELT'S REDISTRIBUTIONISM WAS NOT A VOTEGETTER AND HE WON IN 1936 AS A REWARD FOR STOPPING THE DOWNWARD ECONOMIC SPIRAL OF THE DEPRESSION AND IN 1940 AND 1944 ON FOREIGN NOT DOMESTIC ISSUES IN AMERICAN HISTORY INCREASED TAXES ON THE RICH HAVE BEEN CAPABLE OF GENERATING MAJORITY SUPPORT ONLY IN TIMES OF WAR THAT RULE DID NOT CHANGE IN 1993 NONE OF THE DEMOCRATIC CANDIDATES RUNNING IN THE SPECIAL ELECTIONS OF THE FIRST HALF OF THE YEAR PLACED ANY EMPHASIS ON HIGHER TAXES ON THE RICH OR WITH THE EXCEPTION OF ONE WHO LOST HIS PRIMARY CONSPICUOUSLY SUPPORTED THE CLINTON ECONOMIC PLAN 9308040067 930804 LEISURE & ARTS ALL REALLY QUIET ON THE NORTHERN FRONT BY RAYMOND SOKOLOV ZAGREB CROATIA THE NIGHT DID NOT THUNDER WITH ROCKET FIRE NO CRIES OF FEAR AND PAIN RANG OUT THROUGH THE PICTURESQUE STREETS OF THIS ANCIENT CAPITAL THE TROLLEYS RAN ON TIME CAFES WERE OPEN FOR BUSINESS SERVING SPICY CEVAPCICI AND EXCELLENT LOCAL BEER THE ONLY ETHNIC CLEANSING HERE HAS BEEN THE SPRUCING UP OF THE FACADES OF THE MYRIAD BAROQUE BUILDINGS LEFTOVER FROM THE HAPSBURG PAST THE ONLY ARMED MAN I SAW WAS A POLICEMAN AT A ROADREPAIR SITE NEAR THE CHARMING CENTRAL RAIL STATION THE CURRENT TROUBLES HAVE NOT TOUCHED ZAGREB THE WAR AND ITS UNSPEAKABLE MASSACRES ARE FOR NOW SAFELY SOUTH OF HERE BUT PLENTY OF PEOPLE WHO OUGHT TO KNOW BETTER SEEM TO THINK THAT EVERY INCH OF FORMER YUGOSLAVIA HAS BEEN REDUCED TO RUBBLE BEFORE I LEFT NEW YORK IN MIDJULY A SEASONED FOREIGN CORRESPONDENT ADVISED ME TO PACK SOME FOOD SOME NEWS PROFESSIONALS REACTED AS IF I WAS ABOUT TO PARACHUTE INTO THE SIEGE OF DIEN BIEN PHU EVEN THE CABBY WHO DROVE ME TO THE SWANK INTERCONTINENTAL HOTEL SEEMED PUZZLED WARUM HE ASKED IN HALTING GERMAN WHY WHY NOT REGULAR SWISSAIR FLIGHTS FROM ZURICH BRING IN TOURIST GROUPS LOOKING FOR BARGAIN VACATIONS IN THIS PRETTY TOWN AND ON THE STRETCH OF ADRIATIC COAST YOU CAN STILL GET TO SAFELY FROM HERE THERE IS A FREE FOURCOLOR ENTERTAINMENT GUIDE TO ZAGREB CALLED GRATIS WRITTEN IN CROATIAN AND ENGLISH WITH LISTINGS FOR FILM ALL OF THEM USMADE AND MOSTLY VIOLENT CAPE FEAR SINGLE WHITE FEMALE OPERA BARBER OF SEVILLE THEATER AND CABARET INCLUDING EROTSKA POEZIJA CONCERTS RANGING FROM A PIANO RECITAL OF ROMANTIC WORKS TO AN ECLECTIC ORGAN RECITAL IN THE CATHEDRAL BACH MESSIAEN LISZT TO JERRY LEE LEWIS AND FATS DOMINO AT THE ZAGREB STADIUM NONE OF THESE DIVERSIONS EXHILARATING AS THEY MAY HAVE BEEN HAD DRAWN ME TO ZAGREB NOR WAS I HERE TO STROLL THROUGH THE STEEPLY WINDING BYWAYS OF THE ACROPOLIS OF THE GORNJI GRAD OR UPPER CITY WITH ITS ONCEFORTIFIED GRADEC FLANKED BY BAROQUE TOWNHOUSES THIS CENTRAL SQUARE CONTAINS THE HISTORIC CHURCH OF SAINT MARK THE PARLIAMENT BUILDING AND THE HEAD OF STATE'S RESIDENCE I DID IN FACT PASS THROUGH HERE TRYING MY BEST NOT TO REMEMBER THE MAIN LEGEND OF THE PLACE THAT THE LEADER OF A PEASANT REVOLT WAS DRAGGED HERE IN 1573 CROWNED IN FRONT OF THE CHURCH WITH A CORONET OF RED HOT IRON AND THEN DISMEMBERED FROM THESE SAME GOVERNMENT BUILDINGS DURING WORLD WAR II THE CROATIAN FASCIST USTASE GOVERNMENT ORGANIZED THE SLAUGHTER OF MYRIAD SERBS AND MOST OF YUGOSLAVIA'S JEWS GRADEC WAS COMPLETELY DESERTED THE SUNNY AFTERNOON I SAW IT THE CHURCH WAS CLOSED ELSEWHERE TOO IN PLACES YOU WOULD HAVE EXPECTED CROWDS THE POPULATION WAS SPARSE I WAS REMINDED A LITTLE OF NEW YORK ON THE FOURTH OF JULY PLEASANTLY EMPTY AS IF A COBALT BOMB HAD FELLED ALL THE PEOPLE IN THEIR BEDS LEAVING THE USUALLY CHOKED METROPOLIS TO ME ALONE OF COURSE THERE WERE PEOPLE IN ZAGREB BUT FEW AND FAR BETWEEN RESTAURANTS WERE BARE THE MAGNIFICENT GREENSWARD THAT STRETCHES UPWARD FROM THE RAIL STATION TO THE STROSSMAYER GALLERY OF OLD MASTERS AND ON FURTHER TO THE ARCHAEOLOGICAL MUSEUM WAS HARDLY TEEMING WITH STROLLERS LINES AT THE RAIL STATION WERE SHORT AND IT WAS EASY TO BUY A TICKET ON THE NEXT MORNING'S TRAIN TO BUDAPEST AT THE INTERCONTINENTAL HOTEL THE CASINO AND THE ELEGANT WINE STORE SPECIALIZING IN CROATIAN VINTAGES HAVE KEPT THEIR DOORS OPEN BUT THE MOST VISIBLE GUESTS THESE DAYS ARE NOT HIGH ROLLERS AND WINEBIBBERS BUT UNITED NATIONS STAFFERS THEIR WHITE CARS WITH PLAIN BLACK UN INSIGNIA ARE NUMEROUS IN THE PARKING LOT THE HOTEL GIVES THEM A STEEP DISCOUNT THEY ARE EVIDENTLY NOT BESIEGING THE HOTEL'S CONCIERGE WITH QUESTIONS ABOUT CURRENT CULTURAL EVENTS NOR IS ANYONE ELSE SINCE THE FRIENDLY PEOPLE BEHIND THE DESK DREW A BLANK WHEN ASKED ABOUT THE ONLY ART EXHIBITION OF INTERNATIONAL SIGNIFICANCE IN ZAGREB THIS SUMMER FROM EVERYDAY TO HOLIDAYS BAROQUE IN CROATIA AT THE MUSEUM OF ARTS AND CRAFTS UNTIL SEPT 26 THIS SPLENDID SHOW OF OBJECTS RANGING FROM WEAPONS TO CHURCH VESTMENTS TO NOBLE PORTRAITS AND SNUFFBOXES IS PART OF A SET OF MUSEUM EXHIBITIONS IN SIX COUNTRIES MARKING THE YEAR OF THE BAROQUE IN CENTRAL EUROPE IN THE CZECH REPUBLIC PRAGUE SLOVAKIA BRATISLAVA POLAND WARSAW AND POZNAN AND HUNGARY BUDAPEST AND SZEKESFEHERVAR OTHER SHOWS ARE DEMONSTRATING HOW THE BAROQUE IN THE 16TH AND 17TH CENTURIES UNIFIED A REGION NOW PREOCCUPIED WITH REASSERTING ITS INTERNAL DIFFERENCES GIVEN THE BRUTAL REALITIES HERE IN FORMER YUGOSLAVIA THE ORIGINS OF THE YEAR OF THE BAROQUE HAVE TAKEN ON AN IDYLLIC IRONIC GLOW THE MAN BEHIND THE VISION WAS GIANNI DE MICHELIS THIS FORMER SOCIALIST FOREIGN SECRETARY OF ITALY IS NOW A CASUALTY OF THE CORRUPTION SCANDALS TURNING HIS COUNTRY UPSIDE DOWN IN 1990 HOWEVER HE STARTED THE DIPLOMATIC INITIATIVES THAT LED AMONG OTHER THINGS TO THIS YEAR'S CONCURRENT EXHIBITIONS THE SHOW IN LJUBLJANA SLOVENIA HAS BEEN DELAYED UNTIL OCT 15 WHICH WERE MEANT AS A CELEBRATION OF THE FALL OF COMMUNISM NOW HERE THE FINE EMBROIDERY AND HANDCARVED FURNITURE OF CROATIA'S BAROQUE PAST EMBODY A PLEASANT SERENITY AS UNATTAINABLE AS AT ANY TIME IN THE PAST 50 YEARS 9308040066 930804 TRANSPORTATION SELFSERVICE AT GAS STATIONS INCLUDES PAYING BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS SPEEDING TOWARD COMPLETE SELFSERVICE AT GAS STATIONS BIG OIL COMPANIES ARE RAPIDLY INSTALLING SYSTEMS THAT LET DRIVERS POP THEIR CREDIT CARDS INTO A SLOT ON THE PUMP HIT A FEW BUTTONS AND PAY FOR GAS WITHOUT HAVING TO DEAL WITH A CASHIER PEOPLE GET AGGRAVATED AT ANYTHING THAT SLOWS THEM DOWN SAYS STEVE PRYOR VICE PRESIDENT OF FUELS MARKETING AT MOBIL CORP THE MOST AGGRESSIVE INSTALLER OF THE PAYATTHEPUMP SYSTEMS THE CARD READERS CUT A DRIVER'S PURCHASE TIME TO THREE MINUTES FROM SEVEN BY THE END OF THE YEAR MOBIL WILL HAVE THE NEW SYSTEMS IN NEARLY ONE OUT OF EVERY FOUR STATIONS ABOUT 2000 AND WILL EXPAND FROM THERE CHEVRON CORP PUT IN FAST PAY CARD READERS AT 1000 STATIONS AND OTHER BIG OIL COMPANIES SUCH AS EXXON CORP TEXACO INC AND SHELL OIL CO ARE MOVING QUICKLY TOO THE TIME HAS COME SAYS DONALD SMITH EDITOR OF NATIONAL PETROLEUM NEWS WHO PREDICTS CARD READERS WILL SOON BECOME AS UBIQUITOUS AS SELFSERVICE ISLANDS DURING A RECENT AFTERNOON RUSH HOUR IN 101DEGREE DALLAS HEAT WHAT IS MOST STRIKING ABOUT THE GOINGSON AT DANIEL BOSCHERT'S MOBIL STATION AT THE CORNER OF WALNUT HILL LANE AND STEMMONS FREEWAY IS THAT EVERYBODY IS INDEED RUSHING SOME DAYS I JUST DON'T WANT TO TALK TO ANYBODY SAYS WILLIAM MILLER A PRINTER HEADING HOME WHO HAD TO STOP TO FILL UP HIS CHEVY PICKUP EMPHASIZING EACH WORD HE SAYS I LIKE THIS WHILE POUNDING THE CARD READER WITH HIS RIGHT HAND MOTORISTS FILL UP ON AVERAGE ABOUT 52 TIMES A YEAR ALREADY THERE ARE DRIVERS LIKE FRANK GRAY A DALLAS VOLVO OWNER WHO NOW WON'T BUY GAS ANY OTHER WAY EXCEPT WITH CARD READERS IT'S GREAT NOT TO HAVE TO STAND ON LINE BEHIND SOMEONE WHO BUYS CIGARETTES HE SAYS I DON'T KNOW HOW WE SURVIVED WITHOUT IT TO BETTER UNDERSTAND HOW PEOPLE BUY GAS MOBIL LAST YEAR HIRED A NEW YORK FIRM OF ANTHROPOLOGISTS CALLED CULTURAL ANALYSIS GROUP TO VIDEOTAPE CUSTOMERS AT THREE STATIONS IN BOSTON THE GROUP FOUND THAT THE TYPICAL GASOLINE BUYER WAS IN A RUSH READY TO BLOW UP AT THE SMALLEST PROVOCATION AND VIEWED BUYING GAS AS AN ANNOYING INCONVENIENCE MOST PEOPLE RITUALIZE BUYING GAS SAYS JOHN LOWE VICE PRESIDENT OF CULTURAL ANALYSIS GROUP AND THE SAMENESS MAKES THEM FEEL PROTECTED ANY CHANGE CAN BE MET WITH RESISTANCE PEOPLE ARE INFLEXIBLE AND IT DRIVES COMPANIES LIKE MOBIL CRAZY HE SAYS THE COMPANY HAS INNOVATIONS AND IT'S HARD TO GET PEOPLE TO USE THEM MR LOWE'S VIDEOTAPES SHOW SOME DRIVERS ANGRILY PUNCHING THE NEW CARD READERS OTHERS WOULD JUST STARE AT THEM FOR MINUTES AT A TIME ELDERLY PEOPLE FOUND THE TECHNOLOGY DAUNTING TEENAGERS WITH NINTENDO FINGERS FOUND IT EASY TO USE THE FIRST TIME BASED ON THE TAPES AND INHOUSE MARKET RESEARCH BY MOBIL MR PRYOR SAYS IT BECAME CLEAR THAT CUSTOMERACTIVATED TERMINALS ULTIMATELY MADE A LOT OF CUSTOMERS LESS TENSE STILL MR BOSCHERT THE MOBIL DEALER IN DALLAS AT FIRST DIDN'T WANT THE NEW SYSTEM BECAUSE HE FEARED THAT PEOPLE WOULDN'T COME INTO HIS CONVENIENCE STORE AND IMPULSIVELY BUY BEER SODA SNACKS AND CIGARETTES ON THEIR WAY TO PAYING FOR GAS BUT HE FOUND THAT THE LONG LINES INSIDE THE STORE WERE DISCOURAGING SALES ANYWAY AND THAT HALF THE PEOPLE ON THE LINE ONLY WANTED TO BUY GASOLINE WITH SHORTER LINES BOTH GASOLINE AND STORE SALES ARE UP HE SAYS MOBIL BASED IN FAIRFAX VA SAYS THAT GASOLINE SALES TYPICALLY RISE 5 OR MORE AFTER A STATION INSTALLS CARD READERS AND THAT STORE SALES TEND TO STAY THE SAME OR GO UP THAT'S IMPORTANT TO DEALERS LIKE MR BOSCHERT WHO SAYS HE CURRENTLY MAKES ABOUT A NICKEL FOR EVERY 109 A GALLON OF GAS SOLD BUT GARNERS A PROFIT MARGIN OF 25 TO 30 ON STORE PRODUCTS MR BOSCHERT QUICKLY BECAME A CONVERT AND THINKS THE MACHINES ARE WELL WORTH THE COST OF INSTALLING AT 15000 PER PUMP IN CASES LIKE HIS MOBIL PAYS FOR THE NEW HARDWARE BECAUSE THE COMPANY OWNS THE STATION BUT THE OIL COMPANY THEN RAISES THE RENT AS FOR CONSUMERS MR LOWE THE ANTHROPOLOGIST SAYS WOMEN IN PARTICULAR LIKE PAYING AT THE PUMP BECAUSE THEY REMAIN IN CONTROL I'M USUALLY RUNNING LATE SAYS PATTI MEDINA BOUNDING OUT OF HER WHITE OLDSMOBILE ARMED WITH A DISCOVER CARD LESS THAN TWO MINUTES LATER SHE GRABS A RECEIPT FROM THE PUMP AND LEAVES NOTHING BUT EXHAUST IN HER WAKE ROUGHLY ONE OUT OF FOUR CUSTOMERS NOW PAYS AT THE PUMP AT WALNUT HILL MOBIL MARVIN SURLES ISN'T ONE OF THEM A SALESMAN WHO DRIVES 1000 MILES A WEEK HE SEES THE STATION AS A HOME AWAY FROM HOME AND ALWAYS GOES INSIDE TO CHAT I LOVE THE FACETOFACE CONTACT HE SAYS SOME PEOPLE LIKE BILL MARTINEZ CAN'T GET THE CARD READERS TO WORK WITH THE INSIDE OF HIS BLUE HYUNDAI HEATING UP IN THE SUN MR MARTINEZ REPEATEDLY HITS AN ARRAY OF BUTTONS AND SLAMS HIS AMERICAN EXPRESS CARD IN AND OUT OF THE SLOT AT LEAST 10 TIMES I DIDN'T HAVE A PROBLEM WITH IT BEFORE HE GRUMBLES HITTING THE CREDITCARD BUTTON ANOTHER TIME BEFORE GIVING UP AND DECIDING TO PAY INSIDE FOR SANDRA PAGAN THE STATION MANAGER AT WALNUT HILL MOBIL THE DISADVANTAGE OF SUCCESSFUL CARD READERS COMES ON CHRISTMAS AND OTHER HOLIDAYS WHEN TRAFFIC IS SLOW AND EVERYBODY PAYS AT THE PUMP IT ALMOST TAKES YOUR JOB AWAY SHE SAYS IT'S REAL LONELY 9308040065 930804 LETTERS TO THE EDITOR FIRST BOSTON REPLIES TO ONESIDED' ARTICLE YOUR PAGEONE ARTICLE JULY 19 ABOUT FIRST BOSTON WAS MISLEADINGLY OUT OF DATE INCOMPLETE AND ONESIDED THROUGH THE OMISSION OF RELEVANT INFORMATION YOU HAVE MISINFORMED YOUR READERS CONSIDER THE FOLLOWING YOU WROTE THAT FIRST BOSTON SUFFERED LOSSES IN 1990 ON A SERIES OF BRIDGE LOANS TOTALING 11 BILLION THAT COULDN'T BE REFINANCED YOU FAILED TO REPORT THAT SINCE 1990 EVERY ONE OF THE BRIDGE LOANS TO THOSE COMPANIES HAS BEEN PERMANENTLY REFINANCED MOST OF THE RESULTING NEW EQUITY OR NOTES THAT WE OBTAINED IN THESE RESTRUCTURINGS HAVE NOW SUCCESSFULLY BEEN SOLD FURTHERMORE OUR REMAINING MINOR INVESTMENTS IN THESE RESTRUCTURED COMPANIES ARE ALL VALUED SIGNIFICANTLY HIGHER THAN THEIR CARRYING VALUE IN THIS SAME TIME PERIOD THE CS FIRST BOSTON GROUP'S LONGTERM CAPITAL HAS INCREASED FROM 16 BILLION TO NEARLY 4 BILLION THESE FACTS ARE IN DIRECT CONTRADICTION TO YOUR HEADLINE WHICH READ IN PART HOW FIRST BOSTON LOST CAPITAL IN YOUR NARROW FOCUS ON THESE LOANS YOU OMITTED THE FACT IN THE OVERALL PROFITABILITY PICTURE THAT CS FIRST BOSTON GROUP'S RETURN ON EQUITY MORE THAN 27 OVER THE LAST 2 1/2 YEARS IS ONE OF THE HIGHEST ON WALL STREET YOU SAID THAT BECAUSE OUR CAPITAL LAGS BEHIND THAT OF SOME OF OUR COMPETITORS CS FIRST BOSTON CAN'T COMPETE IN THE SAME ARRAY OF TRADING AND OTHER CAPITALINTENSIVE BUSINESSES BUT AS YOU NOTED CS FIRST BOSTON SINCE 1991 HAS MOVED UP IN THE RANKINGS FROM EIGHTH TO FOURTH PLACE IN TRADING EXCHANGELISTED STOCKS FURTHER TO THE ISSUE OF THE DEPLOYMENT OF OUR CAPITAL FIRST BOSTON IN A SINGLE DAY EARLIER THIS YEAR WAS LEAD MANAGER FOR FIVE SUCCESSFUL FIXEDINCOME ISSUES TOTALING 4 BILLION YOU MENTIONED THAT FIRST BOSTON WAS THE LEAD MANAGER FOR THE 201 BILLION CHRYSLER CORP COMMON STOCK OFFERING THE THIRD LARGEST IN HISTORY FOR A US CORPORATION AND ALSO THE LEAD GLOBAL COORDINATOR FOR THE 304 BILLION PUBLIC OFFERING OF COMMON STOCK FOR ARGENTINA'S YPF WE WERE ALSO LEAD MANAGER FOR 165 BILLION OF IBM DEBENTURES A RECORD FOR AN INVESTMENTGRADE CORPORATE BOND ISSUE LEAD MANAGER FOR THE WORLD BANK'S FIRST GLOBAL 30YEAR BOND ISSUE LEAD MANAGER FOR A 3 BILLION ISSUE FOR THE UNITED KINGDOM A RECORD FOR A FIXEDRATE EURODOLLAR BOND ISSUE AS AN ANTIDOTE TO YOUR REPORTING HERE IS HOW THE CS FIRST BOSTON GROUP IS PERCEIVED BY OTHER PUBLICATIONS CS FIRST BOSTON RANKED NO 1 IN THREE MAIN CATEGORIES IN THE WALL STREET JOURNAL EUROPE'S 1992 INVESTMENT BANKING SURVEY OF 400 EUROPEAN CORPORATIONS CS FIRST BOSTON WON EUROMONEY'S 1993 AWARD FOR EXCELLENCE IN MERGERS AND ACQUISITIONS JULY 1993 FIRST BOSTON CORP EXCELS IN ASSETBACKED DEBT ACCORDING TO EUROMONEY'S JULY 1992 READERS POLL THE FIRM WAS NAMED WESTERN BANK OF THE YEAR BY CENTRAL EUROPEAN MAGAZINE APRIL 1992 CS FIRST BOSTON PACIFIC WAS NAMED 1992 MERCHANT BANK OF THE YEAR BY ASIA MONEY & FINANCE DECEMBER 1992JANUARY 1993 FORTUNATELY RESULTS AND REVIEWS LIKE THE ABOVE WILL NOT COME AS A SURPRISE TO OUR CLIENTS AND CUSTOMERS BUT THEY MAY WELL BE NEW INFORMATION TO OTHER OF YOUR READERS 9308040064 930804 HOW THE TAX PLAN WOULD AFFECT YOU START NOW TO SOFTEN THE BLOW OF HIGHER RATES BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL NO MORE EXCUSES NOW THAT HOUSE AND SENATE CONFEREES FINALLY HAVE AGREED ON A TAX BILL IT'S TIME TO START CONSIDERING STEPS TO EASE THE STING THERE IS OF COURSE STILL A CHANCE THAT CONGRESS MAY REJECT THE BUDGET DEFICITREDUCTION MEASURE OR LAWMAKERS MIGHT DO SOME LASTMINUTE TINKERING WITH SEVERAL PROVISIONS BUT IF THE PLAN DOES WIN APPROVAL IN CLOSE TO ITS CURRENT FORM IT WILL MEAN HIGHER TAXES FOR MANY SOCIAL SECURITY RECIPIENTS AND UPPERINCOME AMERICANS INDEED MANY TAXPAYERS MAY BE STARTLED TO LEARN THAT THE ACTUAL TOP RATES THEY WOULD PAY ARE EVEN HIGHER THAN THE RATES THEY HAVE BEEN READING ABOUT THE NEW TOP STATED MARGINAL RATE WOULD JUMP TO 396 THIS YEAR FROM 31 PREVIOUSLY BUT THE ACTUAL TOP RATE WOULD BE MUCH HIGHER FOR MANY PEOPLE CALCULATIONS BY THE ACCOUNTING FIRM OF DELOITTE & TOUCHE SHOW THAT SOME SELFEMPLOYED UPPERINCOME TAXPAYERS WITH LARGE FAMILIES WOULD WIND UP PAYING AN EFFECTIVE MARGINAL RATE OF OVER 44 THAT'S BECAUSE OF SEVERAL HIDDEN INCREASES OFTEN REFERRED TO AS BACKDOOR INCREASES THESE INCLUDE SUCH ITEMS EMBEDDED IN CURRENT LAW AS LIMITS ON ITEMIZED DEDUCTIONS AND THE PHASEOUT OF PERSONAL EXEMPTIONS ALSO THE PROPOSED NEW LAW WOULD ELIMINATE THE CAP ON WAGES SUBJECT TO THE HOSPITAL INSURANCE PORTION OF SOCIAL SECURITY TAXES EFFECTIVE JAN 1 1994 WHILE THERE IS LITTLE THAT MOST PEOPLE AFFECTED BY THE BILL CAN DO TO AVOID THE BULK OF THE INCREASED TAXES THERE ARE SOME STEPS THAT MAY PRODUCE SURPRISINGLY LARGE SAVINGS PEOPLE CAN DO A LOT TO MINIMIZE THEIR TAXES BY PAYING ESPECIALLY CLOSE ATTENTION TO THEIR INVESTMENTS SAYS CLINT STRETCH DIRECTOR OF TAX LEGISLATIVE AFFAIRS AT DELOITTE IN WASHINGTON AS TAX RATES GO UP THIS KIND OF PLANNING BECOMES MUCH MORE IMPORTANT PART OF WHAT UPPERINCOME PEOPLE CAN DO TO MINIMIZE THE BITE IS WHAT THEY SHOULD HAVE BEEN DOING ALL ALONG ONLY MORE SO FOR INSTANCE TAXEXEMPT MUNICIPAL BONDS WOULD LOOK FAR MORE ATTRACTIVE TO MANY INVESTORS THE SAME GOES FOR TAXDEFERRED RETIREMENT PROGRAMS INCLUDING 401KS KEOGH PLANS AND INDIVIDUAL RETIREMENT ACCOUNTS AS WELL AS TAXDEFERRED INVESTMENTS SUCH AS ANNUITIES EMPHASIZING CAPITAL GAINS WHICH WOULD BE TAXED AT A SIGNIFICANTLY LOWER RATE THAN INCOME FROM DIVIDENDS AND INTEREST ALSO BECOMES MUCH MORE ADVANTAGEOUS REMEMBER THOUGH NEVER TO MAKE ANY INVESTMENT DECISION SOLELY ON THE BASIS OF TAX CONSIDERATIONS THAT CAN BE AN INSTANT FORMULA FOR DISASTER TAXES ARE ONLY ONE THING TO CONSIDER IN ANYTHING YOU DO SAYS NORMAN A BARKER A PARTNER IN THE ACCOUNTING FIRM OF ERNST & YOUNG IN WASHINGTON ALTHOUGH IMPORTANT THEY SHOULD NOT BE THE CONTROLLING FACTOR UNDER THE TENTATIVE COMPROMISE HAMMERED OUT BY HOUSESENATE CONFEREES THE MARGINAL RATE WOULD RISE TO 36 FOR COUPLES WITH TAXABLE INCOME ABOVE 140000 FOR INDIVIDUALS THE THRESHOLD WOULD BE 115000 THE TOP STATED RATE OF 396 WOULD APPLY TO COUPLES AND INDIVIDUALS WITH TAXABLE INCOME ABOVE 250000 EVEN WITH ALL OF THE QUESTION MARKS SURROUNDING THE FATE OF THE BILL HERE IS WHAT TAX LAWYERS AND ACCOUNTANTS NOW ARE RECOMMENDING THAT CLIENTS CONSIDER TAKE A FRESH LOOK AT TAXFREE BONDS FINANCIAL ADVISERS URGE MANY PEOPLE TO CONSIDER INVESTING MORE MONEY IN TAXFREE BONDS THOSE ISSUED BY STATE AND LOCAL GOVERNMENTS INDEED ON WALL STREET PRESIDENT CLINTON IS BEING CALLED THE GREATEST TAXFREE BOND SALESMAN IN HISTORY MUNICIPAL BONDS ARE ONE OF THE FEW TAXADVANTAGED INVESTMENTS LEFT FOR INDIVIDUAL INVESTORS SAYS JEAN M MARTIN PRESIDENT OF MEREDITH MARTIN & KAYE INC AN INVESTMENT ADVISORY FIRM SPECIALIZING IN FIXEDINCOME INVESTMENTS THE NEW LAW MAKES MUNICIPAL BONDS EVEN MORE ATTRACTIVE EVEN FOR INVESTORS IN THE 28 TAX BRACKET MUNICIPAL BONDS SHOULD BE THE PREFERRED INVESTMENT TO PRODUCE THE OPTIMUM YIELD AFTER TAKING TAXES INTO CONSIDERATION MRS MARTIN SAYS CONSIDER INTERMEDIATETERM BONDS RATHER THAN LONGTERM BONDS INVESTMENT ADVISERS SAY MANY OF THESE STRATEGISTS ARE SHUNNING LONGTERM BONDS BECAUSE THEY FEAR INTEREST RATES WILL RISE ALSO INVESTORS CAN EARN NEARLY THE SAME YIELDS ON SHORTERTERM BONDS WITH MUCH LESS RISK FOR EXAMPLE YIELDS ON DOUBLEARATED TAXFREE BONDS RANGE FROM ABOUT 43 ON THOSE DUE IN FIVE YEARS TO ABOUT 54 IN 15 YEARS SAYS FRANK SCARAGGI A MANAGING DIRECTOR AT LEHMAN BROTHERS SOME SIMILAR BONDS DUE IN 25 YEARS YIELD ONLY 020 PERCENTAGE POINT MORE THAN THOSE DUE IN 15 YEARS HE NOTES LOOK FOR TAXDEFERRED INCOME THE NEW LAW WOULD MAKE IT MUCH MORE IMPORTANT FOR PEOPLE TO MAKE FULL USE OF TAXDEFERRED RETIREMENT PROGRAMS ALL THESE RETIREMENT PROGRAMS WILL MAKE EVEN MORE SENSE UNDER THE LIKELY NEW LAW SAYS G WILLIAM CLAPP SENIOR VICE PRESIDENT OF BESSEMER TRUST CO MANY PEOPLE AREN'T PUTTING AWAY THE FULL AMOUNTS AND WITH THE NEW LAW THEY CERTAINLY SHOULD EXAMINE THIS AND MAY WANT TO CONTRIBUTE MORE THIS ADVICE APPLIES EVEN THOUGH THE NEW MEASURE WOULD IMPOSE NEW LIMITS IN THIS AREA AFFECTING SOME TAXPAYERS SOME INVESTORS MIGHT ALSO CONSIDER OTHER TAXFAVORED INVESTMENTS SUCH AS ANNUITIES AND LIFE INSURANCE INVESTMENT PRODUCTS BUT NEVER LET YOURSELF BE HUSTLED INTO BUYING THESE OFTENCOMPLICATED PRODUCTS WITHOUT KNOWING ABOUT THEIR PERFORMANCE AND HOW MUCH YOU WILL HAVE TO PAY IN FEES HIGH FEES CAN EASILY ERASE ALL OF THE TAX ADVANTAGES THESE PRODUCTS OFFER CAPITAL GAINS LOOK BETTER THAN EVER UPPERINCOME INVESTORS WILL HAVE AN EXTRA INCENTIVE UNDER THE NEW LAW TO SEEK OUT INVESTMENTS THAT PRODUCE CAPITAL GAINS RATHER THAN ORDINARY INCOME SUCH AS INTEREST AND DIVIDENDS THAT'S BECAUSE THE TOP CAPITALGAINS TAX RATE WOULD REMAIN AT 28 WHILE THE TOP STATED RATE ON ORDINARY INCOME WOULD BE AT LEAST 116 PERCENTAGE POINTS HIGHER WHILE THE SENATE INCLUDED HIGHER CAPITALGAINS TAXES FOR THOSE WITH TAXABLE INCOME ABOVE 250000 THAT PROVISION WAS DROPPED IN THE HOUSESENATE CONFERENCE LONGTERM CAPITAL GAINS ARE BY FAR THE MOST FAVORED TYPE OF TAXABLE INCOME UNDER THE PROPOSED NEW RULES SAYS THOMAS P OCHSENSCHLAGER A PARTNER AT THE ACCOUNTING FIRM OF GRANT THORNTON IN WASHINGTON A LONGTERM GAIN IS A GAIN FROM THE SALE OF CAPITAL ASSETS SUCH AS STOCKS OR BONDS HELD FOR MORE THAN ONE YEAR AVOID AN APRIL SURPRISE THE NEW LAW WON'T REQUIRE TAXPAYERS TO PAY MORE TAXES RIGHT AWAY MOST WORKERS WILL FIRST FEEL THE BITE NEXT JANUARY WHEN NEW WITHHOLDING TABLES INSTANTLY YANK MORE FROM THEIR PAYCHECKS THEN IN APRIL THEY WILL HAVE TO PAY THEIR INCREASED 1993 TAXES TO AVOID AN UNPLEASANT APRIL SHOCK FINANCIAL ADVISERS URGE CLIENTS LIKELY TO BE AFFECTED BY THE NEW LAW TO START SETTING ASIDE MONEY NOW IN AN INTERESTBEARING ACCOUNT THE IRS WON'T CHARGE YOU ANY PENALTY IF YOU HAVE UNDERPAID YOUR 1993 TAXES PURELY BECAUSE OF CHANGES IN THE NEW LAW GET LUXURY TAX REFUNDS THE NEW MEASURE WOULD REPEAL THE LUXURY TAX ON NEW BOATS PRIVATE AIRCRAFT EXPENSIVE JEWELRY AND FURS THE CHANGE WOULD BE EFFECTIVE FOR SALES ON OR AFTER JAN 1 OF THIS YEAR ANYONE ENTITLED TO A REFUND SHOULD REQUEST IT FROM THE MERCHANT FROM WHOM THE ITEM WAS PURCHASED SAYS MR STRETCH OF DELOITTE THE CURRENT LAW IMPOSES A 10 TAX ON THAT PORTION OF THE RETAIL PRICE ABOVE CERTAIN THRESHOLD LEVELS ON BOATS THE LEVEL IS 100000 ON AIRCRAFT IT IS 250000 AND ON JEWELRY AND FURS IT IS 10000 THE BILL WOULDN'T REPEAL THE LUXURY TAX ON CARS BUT MR STRETCH SAYS IT WOULD RAISE THE 30000 PRICE THRESHOLD BASED ON INFLATION A TREASURY SPOKESMAN SAID LAST NIGHT THAT THE MEASURE WOULD LIFT THE 1993 THRESHOLD ON CARS TO 32000 HE ALSO SAID THE CHANGE WOULD BE EFFECTIVE FOR PURCHASES AFTER ENACTMENT OF THE BUDGETDEFICIT REDUCTION BILL BE MORE CHARITABLE THE NEW LAW WOULD MAKE IT MORE ATTRACTIVE FOR MANY HIGHINCOME TAXPAYERS TO DONATE TO CHARITY STOCKS BONDS ART WORKS COLLECTIBLES REAL ESTATE AND OTHER PROPERTY THAT HAS INCREASED IN VALUE IN ESSENCE DONORS WOULD BE ABLE TO DEDUCT A GIFT'S FAIR MARKET VALUE RATHER THAN MERELY ITS COST WITHOUT HAVING TO WORRY ABOUT THE ALTERNATIVE MINIMUM TAX OR AMT THE AMT IS A HIGHLY COMPLEX MEASURE DESIGNED TO MAKE SURE UPPERINCOME TAXPAYERS PAY AT LEAST SOME TAX MUSEUMS UNIVERSITIES CONSERVATION GROUPS HOSPITALS AND OTHER CHARITIES CONSIDER THIS PROVISION VITAL TO THEIR FUTURE THE PROPOSED LAW WOULD MAKE THIS PROVISION RETROACTIVE TO JUNE 30 1992 FOR GIFTS OF ART COLLECTIBLES AND OTHER TANGIBLE PERSONAL PROPERTY THAT HAS INCREASED IN VALUE THUS TAXPAYERS WHO MADE BIG GIFTS LATE LAST YEAR MIGHT CONSIDER FILING AMENDED RETURNS THE PROVISION GOVERNING OTHER PROPERTY SUCH AS STOCKS BONDS AND REAL ESTATE WOULD BE EFFECTIVE JAN 1 OF THIS YEAR REVIEW ESTATE PLANNING UNDER THE CURRENT LAW THE TOP ESTATE AND GIFT TAX RATES FELL TO 50 ON JAN 1 OF THIS YEAR FROM 53 AND 55 THE NEW BILL WOULD RAISE THESE RATES BACK TO THE 53 AND 55 LEVELS EFFECTIVE JAN 1 OF THIS YEAR THESE HIGHER TAX RATES MAKE ESTATE TAX PLANNING EVEN MORE IMPORTANT SAYS MR BARKER OF ERNST & YOUNG TAX ADVISERS FEAR THE NEXT TAX BILL POSSIBLY LATER THIS YEAR WILL INCLUDE A PROVISION LIMITING THE AMOUNT OF MONEY PEOPLE CAN GIVE AWAY FREE OF GIFT TAXES NOW A HUSBAND AND WIFE EACH CAN GIVE 10000 A YEAR FREE OF GIFT TAXES TO AS MANY RECIPIENTS AS THEY WANT THERE IS ABSOLUTELY NO LIMIT RIGHT NOW ON HOW MUCH MONEY CAN BE GIVEN AWAY THIS PROVISION CERTAINLY IS VULNERABLE SAYS MR STRETCH OF DELOITTE THUS IF PEOPLE HAVE GIFTS THEY ALREADY WANT TO MAKE THEY SHOULD GO AHEAD AND MAKE THEM SOONER RATHER THAN LATER AMONG THE POSSIBLE CHANGES REDUCING THE 10000 AMOUNT OR LIMITING THE TOTAL AMOUNT OF MONEY THAT CAN BE GIVEN IN A SINGLE YEAR OR OVER A LIFETIME 9308040063 930804 MERCK A LESSON IN INDUSTRIAL POLICY BY DAVID KREUTZER MERCK & CO THE WORLD'S LARGEST PHARMACEUTICAL COMPANY RECENTLY ANNOUNCED THAT IT WOULD BE SPENDING 6 BILLION TO ACQUIRE A LEADING PRESCRIPTION SERVICE MEDCO CONTAINMENT SERVICES INC THIS PURCHASE HAS SET MANY HEARTS AFLUTTER PARTICULARLY THAT OF MARTIN WYGOD MEDCO'S CHAIRMAN WHO STANDS TO COLLECT A 60 MILLION FEE FOR NEGOTIATING THE DEAL BUT OVERLOOKED IN ALL OF THE HOOPLA HAS BEEN THE FACT THAT THE MONEY BEING SPENT ON MEDCO IS MONEY NOT BEING SPENT ON RESEARCH AND DEVELOPMENT IS THIS JUST THE START WILL THE DRUG COMPANIES START AN ACQUISITION BINGE THAT WILL TAKE THEM INTO UNRELATED AREAS SUCH AS REAL ESTATE ENTERTAINMENT MAYBE EVEN SAVINGS AND LOANS IT'S ENTIRELY POSSIBLE THEY HAVE TO DO SOMETHING WITH THEIR PROFITS AND IT IS NOT CLEAR THAT PLOWING THEM BACK INTO R&D IS SUCH A GREAT IDEA THIS IS SURE TO ANNOY AMERICA'S ADVOCATES OF INDUSTRIAL POLICY WHO FREQUENTLY HIGHLIGHT THE TENDENCY OF AMERICAN FIRMS TO ALLOCATE CAPITAL IN WAYS THEY DON'T LIKE MOST ANNOYING OF ALL TO THE INDUSTRIAL POLICY CROWD IS WHEN FIRMS USE CAPITAL FOR A TAKEOVER INSTEAD OF USING IT FOR INVESTMENT IN R&D OR IN PLANT AND EQUIPMENT A SHINING EXAMPLE OF THIS LINE OF THINKING COMES FROM ROBERT REICH SECRETARY OF LABOR IN THE CLINTON ADMINISTRATION AND THE AUTHOR OF NUMEROUS BOOKS ABOUT THE AMERICAN WORKPLACE IN THE SPACE OF A SINGLE PARAGRAPH FROM HIS 1983 BOOK THE NEXT AMERICAN FRONTIER MR REICH CHASTISES RCA FOR PAYING 12 BILLION FOR A FINANCE COMPANY INSTEAD OF INVESTING 200 MILLION TO DEVELOP A VIDEOCASSETTE RECORDER SOCAL FOR WANTING TO SPEND 1 BILLION ON AMAX INSTEAD OF PURCHASING OIL LEASES AND US STEEL FOR BUYING AN OIL COMPANY INSTEAD OF BUILDING A NEW STEEL PLANT ONE APPARENT TENET OF INDUSTRIAL POLICY IS THAT FIRMS SHOULD INVEST ONLY IN PLANT AND EQUIPMENT OR R&D MERCK'S PLAN TO BUY MEDCO DOES NOT FOLLOW THESE GUIDELINES IT SHOULD BE NOTED THAT CORPORATE TAKEOVERS USE RESOURCES ONLY TO THE EXTENT OF THE LABOR AND MATERIALS CONSUMED IN THE DEALMAKING AND UNDERWRITING WHICH IS A VERY SMALL PERCENTAGE OF THE CAPITAL INVOLVED WHAT HAPPENS HERE IS NOT THE CONSUMPTION OF CAPITAL BUT ITS REALLOCATION CONVERSELY BUILDING A STEEL FACTORY OR DEVELOPING A VCR USES REAL RESOURCES EQUAL TO THE AMOUNT OF THE INVESTMENT THAT IS ALL OF THE CAPITAL THIS DOES NOT MEAN THAT TAKEOVERS ARE A BETTER WAY OF MAKING PROFITS ONLY THAT TAKEOVERS DO NOT USE UP THE CAPITAL INVOLVED REGARDLESS OF WHETHER INDUSTRIAL POLICY SUPPORTERS VIEW THE MEDCO TAKEOVER AS A MISALLOCATION OF CAPITAL IT IS USEFUL TO SPECULATE ABOUT WHY MERCK IS MAKING THIS SORT OF DEAL PERHAPS MERCK WOULD HAVE PURCHASED MEDCO EVEN IF HEALTHCARE REFORM HAD NOT BEEN PUT ON THE FRONT BURNER BY THE CLINTON ADMINISTRATION AFTER ALL CHANGE IN THE ORGANIZATION OF THE HEALTHCARE INDUSTRY WAS UNDER WAY BEFORE LAST YEAR'S ELECTION AS EXEMPLIFIED BY THE MOVEMENT TOWARD HEALTH MAINTENANCE ORGANIZATIONS AND MAILORDER PRESCRIPTION SERVICES AND MERCK WAS FREQUENTLY TOUTED AS A ROLE MODEL FOR AMERICAN INDUSTRY BUT ACQUISITION OF MEDCO COULD ALSO MAKE SENSE IN LIGHT OF EXPECTED CHANGES COMING FROM THE POLITICAL MARKET HILLARY RODHAM CLINTON'S REPEATED ATTACKS ON THE DRUG INDUSTRY'S PROFITS AS UNCONSCIONABLE HAVE BEEN AS GOOD AN INDICATOR AS ANY THAT COMPANIES SUCH AS MERCK WERE LIKELY TO BE ADVERSELY AFFECTED BY THE NEW ADMINISTRATION INDEED ALTHOUGH DESCRIBING ANY KIND OF PROFITS AS UNCONSCIONABLE HAS BEEN OUT OF VOGUE FOR MORE THAN A DECADE IT IS NOT HARD TO REMEMBER THAT THIS RHETORIC WAS LAST USED TO DESCRIBE OIL INDUSTRY PROFITS THAT WERE TO BE ATTACKED WITH A BYZANTINE SET OF PRICE AND ALLOCATION CONTROLS IT WOULDN'T BE A BIG LEAP TO EXPECT THAT MS CLINTON'S COMMITTEE TO REFORM THE HEALTHCARE INDUSTRY WILL PROPOSE SOME SORT OF PRICE CONTROLS ON PRESCRIPTION DRUGS WHAT DO PRICE CONTROLS DO THEY CREATE SHORTAGES IN THE CASE OF PRICE CEILINGS ON PETROLEUM PRODUCTS THE SHORTAGES WERE MADE APPARENT IN THE FORM OF THE GAS LINES OF THE 1970S WHAT SORT OF SIGNS SHOULD WE EXPECT IF PRICE CONTROLS ARE PLACED ON DRUGS IN THIS CASE THE RESULT IS MORE LIKELY TO BE SHORTER LIVES INSTEAD OF LONGER LINES ONE OF THE CHARACTERISTICS OF THE PHARMACEUTICAL INDUSTRY IS THAT ITS PRODUCTS HAVE VERY LARGE FIXED COSTS THAT IS THE COST OF DEVELOPING A DRUG IS A VERY LARGE PART OF THE TOTAL COST OF PRODUCING THE DRUG THE PHARMACEUTICAL MANUFACTURER'S ASSOCIATION ESTIMATES THAT THE AVERAGE COST OF BRINGING A NEW DRUG TO MARKET IS 231 MILLION FOR SUCH PRODUCTS TO BE PROFITABLE THE PRICE MUST BE HIGHER THAN THE VARIABLE COST OF PRODUCTION THIS IS WHY DRUG PRICES DROP SO DRAMATICALLY WHEN A PATENT EXPIRES AND GENERIC PRODUCERS WHO HAVEN'T HAD TO INCUR THE HIGH DEVELOPMENT COSTS ENTER THE MARKET WITH PRICES KEPT ARTIFICIALLY LOW THE FIRM THAT ORIGINATES A DRUG WOULD GET NO RETURN ON ITS R&D INVESTMENT CAN WE THE CONSUMERS GET A FREE RIDE FROM PRICE CEILINGS ON DRUGS IN THE SHORT TERM PRICE CONTROLS MIGHT SEEM LIKE AN ATTRACTIVE WAY OF STEMMING THE TIDE OF RISING DRUG COSTS BUT THERE ARE MANY FLAWS IN THIS APPROACH A MAJOR PROBLEM IS THAT AN ENVIRONMENT WHERE FIRMS GET NO RETURN ON R&D IS ONE WHERE FIRMS WILL UNDERTAKE NO R&D THE PUBLICCHOICE SCHOOL OF ECONOMICS HAS LONG ARGUED THAT THE SHORT TIME HORIZON OF ELECTED OFFICIALS ENCOURAGES THEM TO PREFER BORROWING TO TAXING SINCE THE PAIN OF PAYING IS PUSHED TO THE FUTURE WE MAY SEE A SIMILAR BIAS IN CONTROLLING DRUG PRICES SO LONG AS PRICE CEILINGS REMAIN ABOVE THE MARGINAL COST OF MANUFACTURING THE DRUG COMPANIES WILL STILL PRODUCE THEM BUT PRICE CEILINGS WILL REDUCE THE EXPECTED PROFIT FROM DEVELOPING NEW DRUGS AND THIS CAN ONLY REDUCE THE RESOURCES DEVOTED TO CREATING THEM WHAT DRUGS WILL NOT BE DEVELOPED WE WILL NEVER KNOW WHICH IS THE FACET OF THE PRICECONTROL PROBLEM THAT IS NOT ANALOGOUS TO THE DEFICIT PROBLEM WITH THE SLOWED DEVELOPMENT OF NEW DRUGS SOME PEOPLE IN THE FUTURE WILL SUFFER FROM DISEASES THAT OTHERWISE WOULD HAVE BEEN TREATABLE BUT NOBODY WILL BE ABLE TO SAY FOR SURE THAT THEY ARE THE ONES WHO WOULD HAVE BEEN CURED IF ONLY DRUG COMPANIES HADN'T CUT BACK ON RESEARCH THE DEVELOPMENT OF NEW DRUGS HAS CONTRIBUTED TO THIS CENTURY'S REMARKABLE IMPROVEMENT IN THE NATION'S HEALTH AVERAGE LIFE EXPECTANCY HAS INCREASED ALMOST FIVE YEARS SINCE JUST 1970 WHILE IT IS TOO EARLY TO SAY WHETHER DRUG COMPANIES WILL CUT BACK ON R&D THE CURRENT TALK OF HEALTHCARE REFORM IS LOADED WITH INCENTIVES TO DO SO IT WOULD BE A SHAME IF REFORM IN THE NAME OF ENDING UNCONSCIONABLE PROFITS WERE TO DENY OUR CHILDREN THE SAME HEALTH AND MEDICAL GAINS THAT WE HAVE ENJOYED MR KREUTZER IS A PROFESSOR OF ECONOMICS AT JAMES MADISON UNIVERSITY IN HARRISONBURG VA 9308040062 930804 ECONOMY LEADING INDICATORS PROJECT ECONOMY WILL CONTINUE ITS SLUGGISH RECOVERY BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FUTURE OF THE ECONOMIC RECOVERY STILL LOOKS QUITE SLUGGISH THE COMMERCE DEPARTMENT SAID ITS INDEX OF LEADING INDICATORS ROSE A TINY 01 IN JUNE AFTER FALLING 04 IN MAY THE INDEX IS MEANT TO GAUGE THE HEALTH OF THE ECONOMY SEVERAL MONTHS DOWN THE ROAD THIS POINTS TO CONTINUED SLUGGISHNESS IN THE SECOND HALF SAID CARL PALASH SENIOR ECONOMIST FOR MCCARTHY CRISANTI & MAFFEI INC IN NEW YORK MR PALASH NOTED THAT FOR THE FIRST SIX MONTHS OF THE YEAR THE LEADING INDEX HAS AVERAGED A DECLINE OF 01 SIX OF THE 11 INDICATORS THAT MAKE UP THE INDEX CONTRIBUTED TO JUNE'S SMALL RISE THEY WERE CONTRACTS AND ORDERS FOR PLANT AND EQUIPMENT CONSUMER EXPECTATIONS MONEY SUPPLY AVERAGE WEEKLY CLAIMS FOR INITIAL UNEMPLOYMENT INSURANCE STOCK PRICES AND MANUFACTURERS' NEW ORDERS FOR CONSUMER GOODS AND MATERIALS THE INDICATORS THAT HURT JUNE'S READING WERE THE CHANGE IN MANUFACTURERS' UNFILLED ORDERS OF DURABLE GOODS THE PACE OF DELIVERIES AVERAGE WORKWEEK CHANGE IN SENSITIVE MATERIALS PRICES AND BUILDING PERMITS SOME ANALYSTS SAID THE WEAKNESS IN THE INDEX HAS REFLECTED THE WEAKNESS IN THE MANUFACTURING SECTOR WHICH STILL SEEMS TO BE IN A PERIOD OF ADJUSTMENT FACTORY ORDERS FOR CONSUMER AND DURABLE GOODS AND UNFILLED ORDERS HAVE BEEN LACKLUSTER FOR MOST OF THE YEAR AND BOTH THESE COMPONENTS HELP MAKE UP THE LEADING INDEX THE MANUFACTURING SECTOR IS STILL DOING NO BETTER THAN TO HOLD ITS OWN AND IT'S HOLDING DOWN THE GROWTH OF THE REST OF THE ECONOMY SAID ROBERT DEDERICK CHIEF ECONOMIST FOR NORTHERN TRUST IN CHICAGO ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE NET CONTRIBUTIONS OF THE COMPONENTS OF THE COMMERCE DEPARTMENT'S INDEX OF LEADING INDICATORS AFTER VARIOUS ADJUSTMENTS THEY PRODUCED A 01 RISE IN THE INDEX FOR JUNE AND A 04 FALL FOR MAY THE SEASONALLY ADJUSTED INDEX NUMBERS 1982=100 FOR JUNE AND THE CHANGE FROM MAY ARE THE RATIO OF COINCIDENT TO LAGGING INDICATORS WAS 120 UP FROM 121 IN MAY 9308040061 930804 MARKETING & MEDIA SPAGHETTI SAUCE SPAT BETWEEN PREGO RAGU IS SET TO THICKEN CAMPBELL CLAIMS UNILEVER USES LAWSUIT TO TRY TO COVER UP SHRINKING PORTION OF MARKET BY JACK REJTMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN A TANGLED SPAGHETTI WAR MARKETERS OF PREGO ARE MOUNTING A SPICY COUNTERATTACK AGAINST THEIR RIVALS AT RAGU WHICH HAS FILED A LAWSUIT OVER A SAUCY PREGO CAMPAIGN THAT DEPICTS RAGU AS RUNNY CAMPBELL SOUP CO WHICH OWNS THE PREGO BRAND IS SET TO PUBLICLY DEFEND ITS ATTACK ON UNILEVER PLC'S MARKETLEADING RAGU LINE SINCE 1988 CAMPBELL HAS RUN A NUMBER OF TELEVISION PRINT AND RADIO ADS THAT DIRECTLY COMPARE ITS PREGO SPAGHETTI SAUCE WITH RAGU OLD WORLD STYLE IN THE TV SPOTS THE TWO TOPSELLING BRANDS ARE DUMPED ONTO SIDEBYSIDE PLATES OF PASTA WITH PREGO VISIBLY THICKER THAT DEPICTION EVEN THE RAGU SIDE OF THIS SPAGHETTI SPAT CONCEDES IS LARGELY TRUE BUT THE UNILEVER PLAINTIFFS COMPLAIN THAT THE ADS FOR PREGO THANK YOU IN ITALIAN WRONGLY IMPLY THAT ALL PREGO ENTRIES ARE THICKER AND CHUNKIER THAN ALL RAGU LINES TO THAT ASSERTION RAGU HAS A CURT NO THANK YOU IN THE LAWSUIT WHICH WAS QUIETLY FILED IN FEDERAL COURT HERE IN LATE JUNE THE PLAINTIFFS COMPLAIN THAT THE PREGO CAMPAIGN IS FALSELY DISPARAGING TO THE ENTIRE LINE OF RAGU AND DEMONSTRABLY MISLEADING TO CONSUMERS THE SUIT SEEKS FINANCIAL COMPENSATION IN EXCESS OF 50000 FOR LOST REVENUE AND MARKET SHARE BUT THE PAISAN AT PREGO ALLEGES THAT RAGU IS USING A THICK LAYER OF LEGAL ACTION TO COVER UP ITS REAL PROBLEMS OF DECLINING SHARE SINCE PREGO BEGAN THE COMPARATIVE CAMPAIGN IN 1988 RAGU'S TOTAL MARKET SHARE HAS DROPPED TO A CURRENT 362 OF THE 11 BILLION CATEGORY FROM ABOUT A 50 SHARE ACCORDING TO NIELSEN MARKETING RESEARCH FIGURES PREGO MEANWHILE HAS STEADILY GROWN TO A 263 PORTION OF THE SAUCE BUSINESS FROM A 20 SHARE BOTH PARTIES APPARENTLY HAD WORKED THROUGH NONLEGAL CHANNELS IN AN ATTEMPT TO SETTLE THIS DISPUTE TO NO AVAIL UNILEVER'S VAN DEN BERGH FOODS CO HAD APPEALED FOR INTERVENTION FROM THE MAJOR BROADCAST NETWORKS AND FROM THE NATIONAL ADVERTISING DIVISION OF THE COUNCIL OF BETTER BUSINESS BUREAUS INC THAT BODY SUGGESTED THAT CAMPBELL REFINE ITS ADS TO MAKE ONLY SPECIFIC REFERENCES TO THE TWO BRANDS CONSEQUENTLY RAGU OLD WORLD STYLE IS NAMED TWICE IN RECENT ADS BUT CAMPBELL OFFICIALS SAY THE CONCESSIONS STOP THERE WE SHOW THE PRODUCT SHOW THE LABEL SAY THE NAME AND SHOW IT AGAIN SAYS A CAMPBELL SPOKESMAN IN 15 SECONDS IT'S HARD TO SHOW THE NAME MORE WITHOUT ASKING RAGU TO PAY FOR THE ADVERTISEMENTS HE ADDS THERE'S NO WAY IN THE WORLD THAT WE'RE GOING TO LET ANOTHER COMPANY TELL US HOW TO MARKET OUR PRODUCTS A SPOKESMAN FOR RAGU DECLINED TO COMMENT IN ITS LAWSUIT RAGU SAYS THAT IF PREGO REALLY WANTED A FAIR COMPARISON IT WOULD HAVE PICKED ANOTHER RAGU BRAND SOMETHING LIKE SAY RAGU CHUNKY GARDEN STYLE 9308040060 930804 BUSINESS BRIEF MCDONNELL DOUGLAS CORP LIQUIDATOR HIRED TO SELL OFF EXCESS FACTORY EQUIPMENT MCDONNELL DOUGLAS CORP HAS HIRED A LIQUIDATOR TO SELL OFF EXCESS FACTORY EQUIPMENT FROM PLANT CUTBACKS AND CLOSURES IN A MOVE THAT SHOULD RAISE AN ESTIMATED 60 MILLION TO 100 MILLION THE COMPANY IN ST LOUIS CONFIRMED THAT IT HAS HIRED NORMAN LEVY ASSOCIATES INC OF SOUTHFIELD MICH TO LIQUIDATE SURPLUS MACHINE TOOLS AND OTHER ASSETS DURING THE NEXT TWO YEARS FROM PLANTS BEING CLOSED OR CUT BACK AT LOCATIONS INCLUDING TORRANCE CALIF AND COLUMBUS OHIO A MCDONNELL DOUGLAS SPOKESWOMAN CONFIRMED THE ESTIMATE OF THE AMOUNT TO BE RAISED SHE SAID SOME OF THE MONEY COULD BE APPLIED TO DEBT REDUCTION A GOAL COMPANY MANAGERS HAVE IDENTIFIED AS IMPORTANT 9308040059 930804 COMMODITIES SUGAR PRICES SURGE AS TRADERS REACT WITH FEAR THAT RULING ON BRAZILIAN HYBRID TO COME SOON BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL SUGAR FUTURES PRICES SURGED ON THE CONTINUING CONTROVERSY OVER WHETHER LOWGRADE BRAZILIAN SUGAR CAN BE DELIVERED AGAINST FUTURES CONTRACTS AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE SUGAR FOR OCTOBER DELIVERY SETTLED AT 1013 CENTS A POUND UP 057 CENT A POUND AFTER A DAY OF VOLATILE TRADING A VARIETY OF RUMORS SWIRLED THROUGH THE NEW YORK EXCHANGE YESTERDAY BUT THEY AMOUNTED TO MUCH THE SAME THING MOST SUGAR TRADERS BELIEVE THAT THE EXCHANGE SOON WILL BE FORCED TO MAKE A LONGSTALLED RULING ON WHETHER BRAZILIAN CRYSTALLINE SUGAR A HYBRID THAT FALLS BETWEEN RAW AND PROCESSED SUGAR CAN BE USED TO MAKE DELIVERY ON ITS FUTURES CONTRACTS AND FEARS THAT THE EXCHANGE MIGHT RULE THAT THE SUGAR CAN'T BE DELIVERED PROMPTED MASSIVE COVERING OF SHORT POSITIONS OR WAGERS THAT FUTURES PRICES WILL FALL THIS SEEMS TO BE THE FIRST LEGITIMATE SCARE THAT BRAZILIAN SUGAR MIGHT NOT BE DELIVERABLE SAID SAUNDRA KAUL SUGAR ANALYST FOR SMITH BARNEY SHEARSON EVERYONE'S BEEN AFRAID THAT SOMEONE MIGHT BRING A CASE ON THE BRAZILIAN SUGAR TO ARBITRATION WHICH COULD FORCE THE EXCHANGE TO MAKE A RULING ON WHETHER IT IS DELIVERABLE NOW IT APPEARS THAT SUCH A CASE MAY ACTUALLY BE BROUGHT AT LEAST ONE MAJOR INTERNATIONAL SUGAR PROCESSOR AND EXPORTER HAS TAKEN DELIVERY OF THE BRAZILIAN SUGAR USING THE NEW YORK EXCHANGE'S CONTRACTS WHEN THIS TRADE HOUSE TRIED TO PASS THE SUGAR ON TO MOROCCO THE NORTH AFRICAN COUNTRY WAS SAID TO HAVE REJECTED IT THIS REJECTION MS KAUL SAID PROMPTED THE TRADE HOUSE TO FILE AN ARBITRATION CLAIM AGAINST THE COFFEE SUGAR & COCOA EXCHANGE WHICH TRADERS WORRY COULD RESULT IN A RULING ON THE BRAZILIAN SUGAR CONTROVERSY OTHER STORIES CIRCULATING YESTERDAY INCLUDED A REPORT THAT BRAZIL WAS CONSIDERING IMPOSING A 13 RAWSUGAR TAX ON THE CRYSTALLINE SUGAR THIS COULD MAKE THE SUGAR TOO EXPENSIVE TO DELIVER AGAINST THE NEW YORK CONTRACTS AND THEREBY CURTAIL THE AVAILABLE SUGAR SUPPLY THAT CAN BE USED TO MAKE SUCH DELIVERIES THEREFORE TRADERS WHO WERE SHORT' AND HOPING TO MAKE DELIVERY WITH THE BRAZILIAN SUGAR COVERED THEIR POSITIONS SAID JUDITH GANES AN ANALYST FOR MERRILL LYNCH TO COVER SHORT POSITIONS TRADERS BUY FUTURES CONTRACTS A SURGE IN SUCH BUYING EXERTS UPWARD PRESSURE ON FUTURES PRICES FEARS THAT THE EXCHANGE MIGHT BAR CRYSTALLINE SUGAR FROM ITS MARKET HAD AN ESPECIALLY STRONG MARKET IMPACT YESTERDAY BECAUSE THE ABUNDANCE OF THE SUGAR IS THE MAIN REASON WHY PRICES ARE AS LOW AS THEY ARE IN MAY SUGAR FUTURES PRICES REACHED 1326 CENTS A POUND THE HIGHEST LEVEL IN THREE YEARS SINCE THEN THE AVAILABILITY OF THE BRAZILIAN SUGAR HAS PUSHED PRICES DOWN AS LOW AS 907 CENTS A POUND LAST WEEK AS SUGAR PRICES ROSE YESTERDAY THEY TRIGGERED SOCALLED BUY STOPS AT WHICH INVESTORS HAD MADE PREARRANGED ORDERS TO BUY FUTURES CONTRACTS ACTIVATION OF THE STOPS ACCELERATED THE PACE OF THE RISING PRICES ANALYSTS SAID UNDERLYING THE STRENGTH OF THE MARKET WAS A RUMOR THAT RUSSIA AND OTHER MEMBERS OF THE COMMONWEALTH OF INDEPENDENT STATES HAD PURCHASED LARGE QUANTITIES OF SUGAR IN OTHER COMMODITY MARKETS YESTERDAY GRAINS & SOYBEANS PRICES OF CORN FUTURES CONTRACTS ROSE SLIGHTLY NEAR THE END OF A QUIET TRADING SESSION AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR DECEMBER DELIVERY ROSE ONE CENT TO SETTLE AT 24775 A BUSHEL SOYBEAN PRICES SETTLED MIXED GRAIN TRADERS EXPECT PRICES TO MOVE IN A CHOPPY PATTERN UNTIL AUG 11 WHICH IS WHEN THE AGRICULTURE DEPARTMENT IS SCHEDULED TO RELEASE ITS MONTHLY HARVEST FORECAST GRAIN PRICES HAVE BEEN BOUNCING NERVOUSLY WITHIN A RANGE IN LARGE PART BECAUSE CROP ANALYSTS ARE HAVING A HARD TIME CALCULATING THE DAMAGE CAUSED BY THE RECORD RAINS IN THE MIDWEST WHICH MAKES ANTICIPATING THE GOVERNMENT'S MOVE MORE DIFFICULT THAN USUAL THE ESTIMATES BY MAINSTREAM ANALYSTS OF THE UPCOMING CORN HARVEST GENERALLY FALL BETWEEN 72 BILLION BUSHELS AND 78 BILLION BUSHELS WHICH IS AN UNUSUALLY WIDE GAP ENERGY PETROLEUM FUTURES PRICES DRIFTED LOWER AFTER REPORTS THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IS CONTINUING TO PRODUCE AT HIGH LEVELS SOME PRICES FIRMED BRIEFLY ON WORD FROM THE UNITED NATIONS THAT IRAQ NO LONGER IS INTERESTED IN A ONETIME SALE OF OIL AND INSTEAD IS PUSHING FOR A REMOVAL OF ALL UN BANS SO THAT IT CAN EXPORT CRUDE WITHOUT LIMITS BUT THERE WAS LITTLE LASTING EFFECT FROM THAT REPORT AND CRUDE OIL FOR SEPTEMBER DELIVERY SETTLED 12 CENTS LOWER AT 1785 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE TRADING ACTIVITY WAS LIGHT AS ENERGY BROKERS TURNED CAUTIOUS AHEAD OF THE INDUSTRY'S LATEST WEEKLY REPORT ON US OIL INVENTORIES BUT THE REPORT RELEASED BY THE AMERICAN PETROLEUM INSTITUTE AFTER FUTURES TRADING HAD CLOSED CONTAINED NO MAJOR SURPRISES IT SHOWED A DECLINE OF NEARLY 35 MILLION BARRELS IN CRUDE INVENTORIES AND AN INCREASE OF NEARLY 12 MILLION BARRELS IN DISTILLATE FUEL STOCKS GASOLINE INVENTORIES WERE UNCHANGED 9308040058 930804 TUESDAY'S MARKETS BOND RATES HIT 16YEAR LOW STOCKS MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL AN EARLY BOND RALLY FADED BUT STILL LEFT LONGTERM INTEREST RATES AT A 16YEAR LOW STOCK PRICES WERE MIXED THE DOW JONES INDUSTRIAL AVERAGE EDGED UP 028 POINT TO 356127 STANDARD & POOR'S 500STOCK INDEX LOST 088 TO 44927 AND THE NASDAQ COMPOSITE INDEX ROSE 135 TO 70901 DONALD MAUDE CHIEF US FIXEDINCOME STRATEGIST AT SCOTIA MCLEOD USA SAID BOND PRICES JUMPED SHARPLY IN THE MORNING ON THE EXPECTATION THAT THE GOVERNMENT WOULD PURCHASE SECURITIES TO BOLSTER ITS PERMANENT RESERVES BUT THE RALLY COOLED AFTER THE FEDERAL RESERVE ACTION TURNED OUT TO BE MUCH SMALLER THAN ANTICIPATED STILL THE BOND MARKET MANAGED TO HOLD ON TO PART OF ITS GAINS LARGELY BECAUSE OF OPTIMISM THAT CONGRESS WILL APPROVE THE CLINTON ADMINISTRATION'S BUDGETDEFICITREDUCTION PACKAGE BY THE END OF THE WEEK THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN 1/2 POINT OR MORE THAN 5 FOR EACH 1000 FACE AMOUNT TO YIELD 651 THE LOWEST LEVEL SINCE THE TREASURY BEGAN AUCTIONING 30YEAR BONDS IN 1977 STOCK INVESTORS TOOK LITTLE ENCOURAGEMENT FROM RISING BOND PRICES AS THE MARKET DIGESTED ITS RECENT GAINS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 019 TO 10933 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2529 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1051 ISSUES ROSE AND 920 FELL 9308040057 930804 FOREIGN EXCHANGE FOR NOW CENTRAL BANKERS REGAIN REINS BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON FOR THE FIRST TIME IN WEEKS EUROPEAN CENTRAL BANKS SEEMED TO BE REGAINING THE UPPER HAND OVER CURRENCY TRADERS THE BIG QUESTION CAN THEY KEEP IT THAT DEPENDS ECONOMISTS SAY ON HOW QUICKLY THEY LOWER INTEREST RATES TO NOURISH ECONOMIC GROWTH YESTERDAY EUROPE'S WEAKER CURRENCIES REGAINED PREVIOUSLY LOST GROUND ON THE MARK AS GERMANY'S CENTRAL BANK CUT A KEY INTEREST RATE A BIT SEVERAL EUROPEAN BOND MARKETS CONTINUED TO RALLY AND THE GERMAN STOCK MARKET SURGED 16 CARRYING SEVERAL OTHERS WITH IT SWITZERLAND'S ROSE 13 AND SWEDEN'S 12 DUTCH STOCKS WERE UP 08 AND THE SMALL AUSTRIAN STOCK MARKET CATAPULTED 32 FRENCH SHARES FELL 09 ON WHAT TRADERS DESCRIBED AS PROFITTAKING AFTER THE MARKET HAD RISEN 7 IN THREE DAYS MEANWHILE THE DOLLAR WAS MOSTLY STEADY ALTHOUGH IT FELL TO ANOTHER RECORD LOW AGAINST THE YEN SOME TRADERS THOUGHT IT MIGHT DIP FURTHER BEFORE RISING LATER THIS YEAR WHAT HAPPENS NEXT DEPENDS ON THE SPEED WITH WHICH EUROPEAN COUNTRIES TAKE ADVANTAGE OF THE EUROPEAN EXCHANGE RATE MECHANISM'S WIDER TRADING RANGES WHICH WERE INSTITUTED AFTER SPECULATIVE SELLING PRESSURE ALMOST DESTROYED THE ERM LAST WEEK THE NEW STRUCTURE ALLOWS MOST CURRENCIES IN THE NINECURRENCY JOINT FLOAT TO FLUCTUATE BY 15 UP OR DOWN AGAINST A SOCALLED CENTRAL RATE PREVIOUSLY MOST CURRENCIES WERE RESTRICTED TO BANDS OF ONLY PLUS OR MINUS 225 APART FROM SAVING THE ERM AT LEAST IN NAME THE MOTIVE BEHIND THE WIDER BANDS WAS TO ALLOW SUCH COUNTRIES AS FRANCE AND DENMARK THE LEEWAY TO TRY TO RECHARGE THEIR RECESSIONRIDDEN ECONOMIES WITH LOWER INTEREST RATES WITHOUT HAVING TO SUFFER THE HUMILIATION OF FORMALLY DEVALUING THEIR CURRENCIES RIGHT NOW PEOPLE ARE TRYING TO FIGURE OUT WHAT THE NEXT MOVE OF THE AUTHORITIES IS SAID THOMAS MAYER A SENIOR ECONOMIST AT GOLDMAN SACHS INTERNATIONAL IN FRANKFURT THE MOST NATURAL CONSEQUENCE WOULD BE FOR THE COUNTRIES TO ORIENT MONETARY POLICY MORE TOWARD THEIR DOMESTIC NEEDS FRANCE AND DENMARK HE SAID NEED TO HEAL THEIR AILING ECONOMIES MR MAYER AND OTHERS ASSERT THAT WITH INFLATION IN DENMARK AT 1 AND IN FRANCE AT JUST UNDER 2 BOTH COUNTRIES HAVE A LOT OF LEEWAY TO LOWER INTEREST RATES WITHOUT REIGNITING INFLATION FEARS TRADERS SAY THAT IF THESE TWO COUNTRIES DON'T BEGIN TO LOWER RATES AS DID PORTUGAL ON MONDAY AND SPAIN YESTERDAY THEY WILL FORCE THEM TO DO SO BY DUMPING THEIR CURRENCIES AS THEY DID LAST WEEK THE MARKETS WILL PROBABLY GIVE THEM A COUPLE OF WEEKS TO THINK THINGS OVER MR MAYER SAID BUT ALISON COTTRELL AN INTERNATIONAL ECONOMIST AT MIDLAND GLOBAL MARKETS IN LONDON DISAGREED YOU WILL HAVE TO SEE SOMETHING OUT OF FRANCE WITHIN A WEEK SHE SAID THAT RIGHT NOW THE CURRENCIES OF FRANCE DENMARK AND POSSIBLY BELGIUM AREN'T SUPPORTED BY THE FACT THAT THEIR INTEREST RATES ARE HIGHER THAN GERMANY'S BUT BECAUSE THEY ARE LOOKED AT AS RECOVERY PLAYS PEOPLE ARE BUYING FRANCE NOT BECAUSE THEY WANT FRANCS BUT BECAUSE THEY WANT THE STOCKS AND THE BONDS SHE SAID THAT REMOVES THE TEMPORARY DOWNSIDE RISK ON THE FRANC SO YOU LOSE 1 ON THE CURRENCY AND GAIN 10 ON THE STOCK MARKET HOWEVER MS COTTRELL WARNED THAT IF FRANCE HESITATED IN LOWERING INTEREST RATES PEOPLE WILL DECIDE TO TAKE THEIR MONEY SOMEWHERE ELSE INDEED GOLDMAN SACHS'S MR MAYER SAID THE FASTER THEY DO IT THE SHORTER WILL BE THE PERIOD DURING WHICH THEIR CURRENCIES DEPRECIATE WHEN FRANCE AND DENMARK FINALLY BEGIN TO LOWER INTEREST RATES THEIR CURRENCIES PROBABLY WILL FALL AGAINST THE MARK BUT BECAUSE OF GERMANY'S ECONOMIC MALAISE AND RELATIVELY HIGH 43 INFLATION RATE ANALYSTS CONTEND THAT ONCE FRANCE AND DENMARK SHOW SIGNS OF ECONOMIC RECOVERY THEIR CURRENCIES WILL RECAPTURE SOME LOST GROUND STEPHEN DULAKE A BOND STRATEGIST AT PAINEWEBBER INTERNATIONAL UK LTD IN LONDON PREDICTED THAT INTEREST RATES IN FRANCE AND DENMARK WOULD BEGIN TO FALL WITHIN FOUR WEEKS MAYBE SO BUT NICHOLAS STEVENSON A EUROPEAN EQUITY STRATEGIST AT SG WARBURG & CO IN LONDON WARNED THE BANQUE DE FRANCE FREED OF THE CONSTRAINT OF THE ERM'S TIGHT BANDS MAY NOT CUT ITS RATES WITH THE ELECTRIC SPEED THAT MONEY MANAGERS IN LONDON AND NEW YORK EXPECT HE ALSO PREDICTED THAT THE BUNDESBANK WOULD SURPRISE INVESTORS BY CUTTING RATES FASTER THAN MANY EXPECT IRONICALLY HE SAID WE'LL PROBABLY END UP WHERE WE WOULD HAVE ENDED UP WITH THE FORMER ERM A VERY STEADY DECLINE IN RATES IN THE TWO MAJOR CONTINENTAL ECONOMIES OVER THE COURSE OF THE YEAR WITH THEIR CURRENCIES REMAINING IN FAIRLY CLOSE ALIGNMENT AS A RESULT HE SAID IN THE VERY SHORT TERM INVESTORS IN THE FRENCH STOCK MARKET WILL BE VERY DISAPPOINTED BY THE LACK OF HASTE WITH WHICH FRANCE CUTS RATES AND POSSIBLY PLEASANTLY SURPRISED BY THE WILLINGNESS OF THE BUNDESBANK TO CUT GERMAN INTEREST RATES EUROPEAN BOND MARKETS ARE ALREADY ANTICIPATING LOWER RATES ON THE CONTINENT YESTERDAY'S SPANISH AND GERMAN INTEREST RATE REDUCTIONS TRIGGERED MODEST RALLIES IN BOTH COUNTRIES' BOND MARKETS IN ADDITION BRITISH BONDS RALLIED YIELDS ON ITALIAN GOVERNMENT 10YEAR BONDS FELL TO 1047 FROM 1080 AND THE FRENCH BOND MARKET ENDED HIGHER ALTHOUGH OFF ITS PEAKS BY CONTRAST DANISH BONDS WERE CLOBBERED BECAUSE DENMARK'S CENTRAL BANK PUSHED INTEREST RATES TO 25 FOR ONEWEEK SECURITIESREPURCHASE AGREEMENTS THAT'S RIDICULOUS SAID PAOLO KIND A BOND MARKET STRATEGIST AT SALOMON BROTHERS INTERNATIONAL LTD IN LONDON THE DANES ARE TRYING TO PUNISH SPECULATORS WHO SHORTED THE KRONE DURING THE CRISIS BUT BY DOING THAT THEY ALSO ARE PENALIZING BOND INVESTORS WHO HAVE TO FINANCE THEIR BONDHOLDINGS WITH A REPURCHASE AGREEMENT A CENTRAL BANK TEMPORARILY BUYS BACK SECURITIES IT PREVIOUSLY ISSUED IT IS A MAJOR TOOL OF CENTRAL BANK MONETARY POLICY IN LATE NEW YORK TRADING THE DOLLAR STOOD AT 17070 MARKS AND 10444 YEN COMPARED WITH 17093 MARKS AND 10441 YEN LATE MONDAY THE BRITISH POUND FELL A BIT TO 15008 FROM 15020 A DAY EARLIER ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10470 YEN AND AT 17085 MARKS DURING TUESDAY'S EARLY TRADING IN ASIA THE DOLLAR FELL TO 10407 YEN ITS THIRD POSTWORLD WAR II INTRADAY LOW IN THREE TRADING DAYS ITS PREVIOUS LOW WAS 10414 SET ON MONDAY CURRENCY DEALERS SAID THAT THE DOLLAR COULD CONTINUE TO BE WEAKENED BY THE REDUCED TENSIONS AMONG EUROPE'S CURRENCIES AND THE NEED FOR EUROPEAN CENTRAL BANKS TO REPURCHASE THE MARKS THEY BORROWED FROM THE BUNDESBANK LAST WEEK TO PROP UP THEIR CURRENCIES WHAT'S MORE TRADERS SAID THE PROPOSED TAX BILL COULD HURT THE DOLLAR IF PEOPLE FEEL A LITTLE UNCOMFORTABLE WITH THE CLINTON PACKAGE A BACKUP IN THE BOND MARKET COULD SET OFF CAPITAL FLOWS BACK INTO EUROPE GIVEN THE ATTRACTIVENESS OF EUROPEAN BOND MARKETS SAID THE HEAD OF TRADING FOR ONE BIG INTERNATIONAL BANK HE ADDED THAT IF THE MEASURE PASSES TAX INCREASES MIGHT SLOW US GROWTH AND CAUSE THE DOLLAR TO SOFTEN HE PREDICTED THE DOLLAR COULD DROP TO AS LOW AS 16750 MARKS 9308040056 930804 SERVICE PLAN TO AID STUDENTS CLEARS SENATE BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE APPROVED A BILL THAT GIVES STUDENTS EDUCATION AID IN RETURN FOR COMMUNITY SERVICE HANDING PRESIDENT CLINTON AN IMPORTANT VICTORY THE 5841 VOTE CAME AFTER DEMOCRATS LAST WEEK SURMOUNTED OPPOSITION FROM REPUBLICANS WHO STALLED THE MEASURE FOR DAYS THE BILL NOW GOES TO A HOUSESENATE CONFERENCE WHERE A FINAL VERSION WILL BE HAMMERED OUT THOUGH THE DIFFERENCES BETWEEN THE HOUSE AND SENATE VERSIONS OF THE LEGISLATION ARE CONSIDERED MANAGEABLE IT'S UNCLEAR WHETHER THE CONFERENCE WILL WRAP UP BY THIS WEEKEND WHEN CONGRESS IS TO START ITS SUMMER RECESS THE LEGISLATION IS SUBSTANTIALLY SCALED BACK FROM MR CLINTON'S PLANS BUT THE PRESIDENT SAID HE WAS EXTREMELY PLEASED WITH THE SENATE ACTION YESTERDAY'S VOTE CAME FIVE DAYS AFTER SENATE MINORITY LEADER ROBERT DOLE CONCEDED THAT REPUBLICANS DIDN'T HAVE ENOUGH VOTES TO CONTINUE THEIR WEEKLONG STALL THE KANSAS REPUBLICAN SAID THE DELAY WAS NECESSARY TO FORCE DEMOCRATS TO ACCEPT ANNUAL COST LIMITS FOR THE PROGRAM BUT IT ALSO LEFT REPUBLICANS VULNERABLE TO DEMOCRATIC CHARGES THAT THEY WERE OBSTRUCTIONISTS DETERMINED TO FILIBUSTER AN IMPORTANT CLINTON INITIATIVE SEN HARRIS WOFFORD A LEADING PROPONENT OF THE LEGISLATION EXPRESSED SATISFACTION WITH THE VOTE WE'VE HAD A HARD SEASON THE PENNSYLVANIA DEMOCRAT SAID BUT WE FINALLY BROKE THROUGH AND IT TASTES SWEET RIGHT NOW THE SENATE BILL ORIGINALLY AUTHORIZED 394 MILLION FOR THE PROGRAM IN FISCAL 1994 AND SUCH SUMS AS NECESSARY FOR THE FOLLOWING FOUR YEARS BUT IN RESPONSE TO REPUBLICAN CRITICISM SENATE DEMOCRATS TRIMMED IT TO A THREEYEAR PROGRAM WITH SPENDING LEVELS OF 300 MILLION 500 MILLION AND 700 MILLION FOR THE THREE YEARS THE HOUSE APPROVED THREEYEAR LEGISLATION AUTHORIZING 394 MILLION FOR THE FIRST YEAR BUT DIDN'T SPECIFY AMOUNTS FOR THE FOLLOWING TWO YEARS ELI SEGAL DIRECTOR OF THE WHITE HOUSE OFFICE OF NATIONAL SERVICE SAID HE EXPECTS THE FINAL VERSION TO EMERGE FROM CONFERENCE WITH SPENDING CAPS BUT HE SAID WE'RE COMFORTABLE WITH THAT BOTH THE HOUSE AND THE SENATE VERSIONS WOULD PROVIDE STUDENTS WITH 4725 A YEAR FOR TWO YEARS FOR COLLEGE OR OTHER POSTSECONDARY EDUCATION IN EXCHANGE FOR COMMUNITYSERVICE WORK INVOLVING EDUCATION PUBLIC HEALTH AND SAFETY OR THE ENVIRONMENT PARTICIPANTS WOULD ALSO GET MINIMUMWAGE STIPENDS PLUS HEALTH AND CHILDCARE BENEFITS BRINGING THE COST TO ABOUT 15000 A STUDENT DURING THE PRESIDENTIAL CAMPAIGN MR CLINTON DISCUSSED ESTABLISHING A PROGRAM TO MAKE COLLEGE FINANCIALLY FEASIBLE FOR ALL AMERICANS BUT OFFICIALS SAID HE WAS REFERRING NOT ONLY TO THE NATIONAL SERVICE PLAN BUT ALSO TO A REVISED STUDENTLOAN PROGRAM THAT MAKES LOAN REPAYMENT TERMS MORE FLEXIBLE THAT LEGISLATION IS NOW PENDING BEFORE CONGRESS IN A FEBRUARY BUDGET DOCUMENT THE ADMINISTRATION SAID IT WOULD SEEK MORE THAN 10 BILLION IN BUDGET AUTHORITY OVER FIVE YEARS FOR THE PLAN AT THAT POINT OFFICIALS WERE CONSIDERING WHETHER TO GIVE STUDENTS AS MUCH AS 10000 A YEAR IN AID IN EXCHANGE FOR COMMUNITY SERVICE BUT PLANS WERE SCALED DOWN CONSIDERABLY BY THE TIME THE LEGISLATION WAS INTRODUCED IN MAY EDUCATION BENEFITS WERE SET AT 5000 A YEAR FOR TWO YEARS AND THE ONLY AMOUNT REQUESTED SPECIFICALLY WAS THE 394 MILLION AUTHORIZATION FOR THE FIRST YEAR THE HOUSE AND SENATE TRIMMED THOSE BENEFITS TO 4725 TO PEG THEM AT 90 OF THE BENEFIT LEVELS OFFERED THROUGH THE GI BILL FOR PEOPLE WHO SERVE IN THE MILITARY 9308040055 930804 ECONOMY SOME TIMBER SALES ARE POSSIBLE UNDER TENTATIVE ACCORD BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION HAS REACHED A TENTATIVE AGREEMENT WITH ENVIRONMENTAL OPPONENTS OF ITS NEW TIMBER POLICY THAT COULD SPEED THE RESUMPTION OF LOGGING IN THE PACIFIC NORTHWEST IN A LETTER TO INTERIOR SECRETARY BRUCE BABBITT AND AGRICULTURE SECRETARY MIKE ESPY THE SIERRA CLUB LEGAL DEFENSE FUND SAID IT WOULD WORK WITH THE OFFICIALS TO IDENTIFY TIMBER SALES THAT COULD BE ALLOWED TO PROCEED THE SALES CURRENTLY ARE BARRED BY INJUNCTIONS ORDERED BY THE COURTS IN RESPONSE TO LAWSUITS BY THE FUND WHICH REPRESENTS A NUMBER OF GROUPS IN THE CASE THE CABINET OFFICIALS SAID IN A RETURN LETTER THAT IF SUCH SALES COULD BE IDENTIFIED THEY WOULD OPPOSE CONGRESSIONAL EFFORTS TO PROTECT THE PRESIDENT'S TIMBER PLAN FROM ENVIRONMENTAL LAWSUITS IT ISN'T CLEAR HOW MUCH TIMBER COULD BE RELEASED THROUGH THESE NEGOTIATIONS THE LETTERS LIST ONLY ONE INJUNCTION THAT ADMINISTRATION OFFICIALS CONTEND INVOLVES ABOUT 200 MILLION BOARD FEET THE OFFICIALS SAID THEY HOPE THE TALKS INVOLVE EVEN MORE TIMBER THEY SAID THEIR GOAL IS TO KEEP LOGS MOVING UNTIL THE INJUNCTIONS ARE LIFTED THROUGH THE LEGAL PROCESS THAT BEGAN WHEN PRESIDENT CLINTON UNVEILED HIS TIMBER POLICY LAST MONTH AT THAT TIME THE WHITE HOUSE PREDICTED THAT MORE THAN TWO BILLION BOARD FEET COULD BE MADE AVAILABLE OVER THE NEXT YEAR BY DRAWING FROM TIMBER ALREADY UNDER CONTRACT OR BEING PREPARED FOR SALE UNLESS THE ENVIRONMENTALISTS AGREE TO LIFT THE INJUNCTIONS HOWEVER MANY OF THE SALES CAN'T BEGIN UNTIL THE PLAN BECOMES FINAL WHICH ISN'T LIKELY UNTIL THE END OF THE YEAR AT THE EARLIEST THE MATTER IS BEING REVIEWED BY A FEDERAL COURT IN SEATTLE THE TALKS WITH THE ENVIRONMENTAL GROUPS AREN'T WITHOUT POLITICAL RISKS FOR THE ADMINISTRATION HOWEVER BY OPPOSING CONGRESSIONAL EFFORTS TO SHIELD THE PLAN FROM LAWSUITS THE OFFICIALS COULD FURTHER ANGER LAWMAKERS FROM THE PACIFIC NORTHWEST WHO ALREADY OPPOSE THE SHARP CUTS IN TIMBER HARVEST THAT THE PLAN ENVISIONS OVER THE NEXT DECADE INDUSTRY GROUPS ATTACKED THE TENTATIVE ACCORD MARK REY VICE PRESIDENT FOREST RESOURCES AT THE AMERICAN FOREST AND PAPER ASSOCIATION SAID THE SMALL AMOUNT LIKELY TO BE FREED UP IS THE EQUIVALENT OF SENDING A FRESH LOAF OF BREAD TO SOMALIA ENVIRONMENTAL GROUPS FOR THEIR PART HAILED THE ADMINISTRATION'S PLEDGE TO OPPOSE LANGUAGE SHIELDING THE PLAN FROM LAWSUITS I HOPE CONGRESS HEARS THAT MESSAGE LOUD AND CLEAR SAID RICHARD HOPPE A WILDERNESS SOCIETY SPOKESMAN BUT THEY ASSERTED THEY ARE STILL DISAPPOINTED WITH THE OVERALL PLAN WHICH CALLS FOR REDUCING TIMBER HARVESTS IN THE REGION TO AN AVERAGE 12 BILLION BOARD FEET ANNUALLY OVER THE NEXT 10 YEARS IN ITS LETTER TO THE CABINET OFFICIALS THE SIERRA CLUB LEGAL DEFENSE FUND SAID THE GROUPS' COMMITMENT TO IDENTIFY TIMBER VOLUME FOR RELEASE DOESN'T MEAN THEY BELIEVE THE CLINTON PLAN IS AN ADEQUATE PLAN FOR MANAGING THE ANCIENT FOREST ECOSYSTEM 9308040054 930804 POLITICAL STIRRINGS IN ROSS PEROT'S WAKE SOME 1992 SUPPORTERS NOW FORM NEW PARTIES A PENNSYLVANIA GROUP WORKS HARD TO GET ON THE BALLOT MAKES HEADWAY AT POLLS INADVERTENT AID TO CLINTON BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WIND GAP PA EPHEMERAL IMAGES OF ROSS PEROT CRITICIZING CLINTONOMICS ARE FLITTING ACROSS AMERICA'S TELEVISION SCREENS BUT AT THE GRASS ROOTS SOMETHING THAT MAY BE MORE LASTING IS TAKING SHAPE INSPIRED BY THE PEROT EXAMPLE NEW INDEPENDENT PARTIES ARE SPRINGING UP AND CHARGING AHEAD WITHOUT WAITING FOR THE TEXAS BILLIONAIRE HERE IN PENNSYLVANIA A SCRAPPY BAND OF ONETIME PEROT SUPPORTERS HAS FORMED THE NEW PATRIOT PARTY IT HAS PUSHED ITS CANDIDATE TO A SECONDPLACE FINISH IN ONE RACE AND JUST THIS WEEK SUCCEEDED IN A PETITION DRIVE TO PLACE ITS FIRST STATEWIDE CANDIDATE ON THE BALLOT BUT THAT'S JUST A SMALL PIECE IN A MUCH WIDER KALEIDOSCOPE SIMILAR STIRRINGS CAN BE SEEN ALL OVER THE COUNTRY IN ADDITION TO PENNSYLVANIA ACTIVISTS ARE WORKING TO LAUNCH NEW PATRIOT PARTIES IN VIRGINIA MARYLAND MICHIGAN AND OHIO THE LEADERS OF PENNSYLVANIA'S INSURGENCY ARE IN CONTACT WITH ACTIVISTS IN ALL THOSE STATES THEY ALSO ARE LOOSELY COORDINATING WITH GORDON BLACK A ROCHESTER NY POLLSTER WHO IS CREATING A NETWORK OF IDEOLOGICALLY SIMILAR INDEPENDENCE PARTIES MR BLACK WHO HAS WORKED FOR MR PEROT HAS FORMED A NATIONAL LEADERSHIP THAT INCLUDES FORMER INDEPENDENT PRESIDENTIAL CANDIDATE JOHN ANDERSON AND INDEPENDENT CONNECTICUT GOV LOWELL WEICKER HIS INDEPENDENCE PARTY HAS SOME REPRESENTATION IN 35 STATES AND SERIOUS ORGANIZING EFFORTS IN 25 OF THEM MR BLACK SAYS WE'RE IN A POSITION WHERE WE CAN SAY WE'LL PROBABLY BE ABLE TO RUN A SERIOUS SLATE OF CANDIDATES IN ABOUT 15 STATES IN 1994 MR BLACK CONTENDS MOST OF US AROUND THE COUNTRY KNOW EACH OTHER AND WE'RE ALL DOING THE SAME SORTS OF THINGS FREQUENTLY WITH DIFFERENT LABELS WHAT INSPIRES THESE EFFORTS IS THE DEEPENING DISGUST WITH THE DEMOCRATIC AND REPUBLICAN PARTIES WHAT UNITES THE NEW PARTIES ARE SOME GENERAL PEROTINSPIRED POLITICAL PRINCIPLES FIGHTING BUDGET DEFICITS DRIVING SPECIALINTEREST MONEY OUT OF POLITICS CUTTING GOVERNMENT FAT AND AVOIDING DIVISIVE SOCIAL ISSUES AND WHAT SEPARATES THIS MOVEMENT FROM SOME PAST THIRDPARTY EFFORTS IS THE FACT THAT ITS IDEALS DON'T LIE ON THE POLITICAL FRINGES BUT IN THE MIDDLE OF THE IDEOLOGICAL SPECTRUM THE LONGTERM VISION IS A NEW CENTRIST POLITICAL PARTY SPANNING THE COUNTRY SAYS NICHOLAS SABATINE III A WIND GAP LAWYER WHO IS STATE CHAIRMAN OF PENNSYLVANIA'S PATRIOT PARTY THAT VISION IS A LONG WAY OFF OF COURSE THE THIRDPARTY MOVEMENT IS STILL SMALL AND DISJOINTED AND IT FACES FORMIDABLE DIFFICULTIES IN A SYSTEM TILTED HEAVILY IN FAVOR OF THE TWO MAJOR PARTIES THE DIFFICULTIES HAVE KILLED EARLIER THIRD PARTIES THE NEW PARTIES' ULTIMATE IMPACT MAY WELL DEPEND ON WHETHER MR PEROT LENDS HIS POLITICAL CLOUT AND POTENT WALLET TO THEIR CAUSE SO FAR HE AND HIS ORGANIZATION HAVE ADOPTED A FRIENDLY BUT ARMSLENGTH POSTURE I DON'T KNOW A THING ABOUT THEM TO TELL YOU THE TRUTH HE SAYS IN AN INTERVIEW HE ADDS ONLY I THINK IT'S GOOD FOR PEOPLE TO GET INVOLVED IN POLITICS YET THE PEROT EXPERIENCE HAS STIRRED DEEP DESIRES FOR A NEW POLITICAL MOVEMENT AND DISENCHANTED FIREBRANDS ARE BRINGING UNMISTAKABLE PASSION TO THE CAUSE CONSIDER THE SCENE THE OTHER NIGHT HERE IN THIS LEHIGH VALLEY HAMLET WHEN SEVERAL DOZEN PATRIOT PARTY MEMBERS CRAMMED INTO A LAW OFFICE TO PLAN THE GRITTY BUSINESS OF GATHERING SIGNATURES TO PUT THEIR CANDIDATES ON THE BALLOT THE ESSENCE OF POLITICAL PARTIES IS HARD WORK DECLARED MR SABATINE THE STATE CHAIRMAN WHO SPENT A RECENT WEEKEND IN 104DEGREE HEAT GOING DOORTODOOR FOR HIS NEW PARTY SURPRISING SOME OF HIS TROOPS HE URGED THEM TO CARRY PETITIONS EVEN INTO HOSPITALS AND NURSING HOMES TO GET SIGNATURES IF YOU KNOW NURSES GIVE THEM THE PETITIONS HE IMPLORED THEY KNOW WHO'S DYING AND WHO JUST HAS A BROKEN LEG HIS PEOPLE PULLED OUT MAPS AND CALENDARS TO PLOT A QUEST FOR SIGNATURES THE THIRDPARTY MOVEMENT HAS AT LEAST THE POTENTIAL TO SHAKE UP THE SYSTEM IN A BIG WAY STARTING WITH CONGRESSIONAL ELECTIONS NEXT YEAR IF THE NEW PARTIES CAN GET ORGANIZED ENOUGH TO FIELD CANDIDATES AND ESPECIALLY IF MR PEROT BACKS THEM THEY COULD STEAL VOTES FROM THE MAJOR PARTIES AND TIP THE BALANCE IN RACE AFTER RACE FOR THE MAJOR PARTIES THE CRUCIAL QUESTION IS WHO STANDS TO GET HURT THE MOST BECAUSE MR PEROT DREW SLIGHTLY MORE TRADITIONALLY REPUBLICAN VOTERS THAN DEMOCRATS LAST YEAR AND BECAUSE THE NEW PARTIES TEND TO STRESS REPUBLICANSOUNDING THEMES OF FISCAL CONSERVATISM MOST ANALYSTS ASSUME THIRDPARTY CANDIDATES WILL TAKE MORE VOTES FROM REPUBLICANS I THINK THERE ARE DEMOCRATS ALL OVER WASHINGTON WHO HAVE WORN OUT TWO PAIRS OF KNEE PADS PRAYING FOR ROSS PEROT TO HAVE THIRDPARTY CANDIDATES IN HOUSE RACES NEXT YEAR SAYS REPUBLICAN NATIONAL CHAIRMAN HALEY BARBOUR MORE BROADLY SOME OBSERVERS THINK THAT THE NEW PARTIES IN THEIR PASSION TO SHAKE UP THE SYSTEM WILL ONLY SHOOT THEMSELVES IN THE FOOT BY SPLITTING THE VOTES OF THOSE SEEKING CHANGE THEY MAY SPLINTER THE THROWTHERASCALSOUT VOTE AND HELP INCUMBENTS STAY IN POWER THEY WILL UNDERMINE THE VERY CAUSE THEY SUPPORT THIS IS THE VERY THING THAT WILL REELECT BILL CLINTON IN '96 PREDICTS FRANK LUNTZ A POLLSTER WHO HAS WORKED FOR REPUBLICANS AND FOR MR PEROT WHATEVER THE EFFECT THE STORY OF THE SPUNKY PATRIOT PARTY OF PENNSYLVANIA SHOWS BOTH THE EMOTIONS THAT ARE DRIVING THIS MOVEMENT AND THE PROBLEMS THAT ITS POLITICAL IDEALISTS QUICKLY ENCOUNTER LIKE MANY OF THE INDEPENDENT GROUPS THE PATRIOT PARTY HERE IS A LINEAL DESCENDANT OF AN ORGANIZATION THAT SPRANG UP LAST YEAR TO GATHER PETITIONS TO PUT MR PEROT ON THE PRESIDENTIAL BALLOT WHEN THE TEXAN BURST ONTO THE SCENE HE ENERGIZED MANY ONCELETHARGIC PENNSYLVANIANS SUCH AS RICHARD OSTRANDER A BURLY BEARDED DOCK BUILDER AND FORMER REPUBLICAN YOU LISTENED TO ROSS PEROT AND HE SAID HEY IT'S TIME YOU GOT OFF YOUR BUTT AND DO SOMETHING' MR OSTRANDER SAYS SO MANY PENNSYLVANIANS DID FORMING A GROUP CALLED PENNSYLVANIANS FOR PEROT TO MOUNT A PETITION DRIVE THEN IN JULY 1992 THE ROOF FELL IN WHEN MR PEROT PULLED OUT OF THE CAMPAIGN LEADERS OF THE PETITION DRIVE SHOCKED AND DOWNCAST GATHERED THAT NIGHT HERE IN MR SABATINE'S LAW OFFICE AND MADE A CRUCIAL DECISION THEIR GROUP WOULD STRUGGLE ON TO PUT MR PEROT'S NAME ON THE BALLOT ANYWAY AND HOPE TO GET THE 2 OF THE STATE'S VOTES REQUIRED TO ESTABLISH THEMSELVES AS A NEW PARTY BEFORE LONG OF COURSE MR PEROT REENTERED THE PRESIDENTIAL RACE AND HE WON ABOUT 900000 VOTES IN PENNSYLVANIA 18 OF THE STATE'S TOTAL IN LINE WITH THE 19 HE GOT NATIONWIDE AFTER THAT THE PEROT ORGANIZATION OFFICIALLY STRUCK OUT ON ITS OWN REGISTERING WITH THE STATE AS THE PATRIOT PARTY THE DISAPPOINTMENT WITH MR PEROT'S SUMMERTIME DEPARTURE FROM THE RACE HARDENED HIS ACTIVISTS' RESOLVE TO SET THEIR OWN COURSE AND THEY KNEW WHERE THEY WANTED TO GO TO MAKE REAL CHANGE YOU HAVE TO RUN CANDIDATES MR OSTRANDER DECLARES THAT'S THE ONLY WAY YOU CAN GET IT THE NEW PATRIOT PARTY DREW UP A SET OF RULES HELD A STATE CONVENTION AND COMPOSED A CODE OF CONDUCT FOR ITS CANDIDATES AMONG OTHER THINGS THAT CODE FORBIDS CANDIDATES TO TAKE MONEY FROM POLITICAL ACTION COMMITTEES LOBBYISTS TRADE ASSOCIATIONS OR UNIONS ALL SEEN AS THE FONTS OF SPECIALINTEREST MONEY THE PEROTISTAS WANT TO EXPUNGE MUCH OF THE BURDEN OF LEADING THE NEW PARTY HAS FALLEN TO MR SABATINE A 41YEAROLD LAWYER AND HIS FATHER NICHOLAS SABATINE JR A 61YEAROLD ENTREPRENEUR WHO BECAME A MILLIONAIRE BY FORMING A SMALL GARMENT BUSINESS THEY ARE IN MANY WAYS THE PROTOTYPICAL GRASSROOTS ACTIVISTS ENERGIZED BY THE PEROT PHENOMENON NEITHER HAD BEEN DEEPLY INVOLVED IN POLITICS BEFORE THE SON A FORMER DEMOCRAT SAYS HIS MOTIVATION WAS SIMPLE I WAS FRUSTRATED WITH THE STUPIDITY IN WASHINGTON HIS FATHER WHO HAD FLITTED BACK AND FORTH BETWEEN THE MAJOR PARTIES HAS AN ADDITIONAL REASON LIKE MR PEROT HE OPPOSES THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH HE SAYS WOULD PUT HIS COMPANY RIGHT OUT OF BUSINESS MR SABATINE THE YOUNGER BECAME STATE CHAIRMAN A JOB HE IS PURSUING WITH THE PASSION OF A RELIGIOUS CONVERT POLITICAL WORK CONSUMES HIS WEEKENDS AND FORCED HIM TO DELAY AN ANNIVERSARY DINNER WITH HIS WIFE HIS FATHER BECAME CHAIRMAN OF THE NORTHAMPTON COUNTY CHAPTER AND GATHERS HIS TROOPS EVERY THURSDAY NIGHT FOR STRATEGY SESSIONS THE FIRST THING THE PATRIOT PARTY DISCOVERED IS THAT IN PENNSYLVANIA AS IN OTHER STATES ELECTION LAWS MAKE IT HARD TO FIELD THIRDPARTY CANDIDATES A PARTY IS CLASSIFIED AS MAJOR ONLY IF ITS MEMBERS MAKE UP 15 OR MORE OF PENNSYLVANIA'S REGISTERED VOTERS SO THE PARTY WOULD HAVE TO REGISTER 899000 VOTERS IN THE STATE GETTING PEOPLE TO CHANGE THEIR REGISTRATION IS TOUGH AND SO FAR THE PATRIOT PARTY PROBABLY HAS FEWER THAN 2000 REGISTERED MEMBERS SO IT IS CLASSIFIED AS A MINOR PARTY AND ITS CANDIDATES MUST MEET FARSTIFFER PETITION REQUIREMENTS THAN MAJORPARTY CANDIDATES DO TO GET ON THE BALLOT THAT WASN'T A PROBLEM IN THE PARTY'S FIRST RACE A SPECIAL ELECTION FOR A VACATED STATE SENATE SEAT BECAUSE THE USUAL REQUIREMENTS DON'T APPLY IN SUCH RACES SO THE PARTY FIELDED A CANDIDATE DIANE BLOUGH WHO STUNNED THE SYSTEM BY GETTING 16 OF THE VOTE BESTING THE DEMOCRAT THOUGH LOSING TO THE REPUBLICAN THE PETITION REQUIREMENT HAS LOOMED AS A MUCH STEEPER HILL IN THE PARTY'S NEXT BIG CHALLENGE ITS EFFORT TO GET ROBERT SURRICK AN ATTORNEY AND LONGTIME CRUSADER AGAINST CORRUPTION IN THE JUDICIAL SYSTEM ONTO THE BALLOT AS A CANDIDATE FOR THE PENNSYLVANIA SUPREME COURT IN NOVEMBER TO GET ON THE BALLOT AS A DEMOCRAT OR REPUBLICAN REQUIRES 1000 SIGNATURES BY CONTRAST THE STATE INITIALLY DECLARED THAT MR SURRICK WOULD NEED 56000 SIGNATURES AFTER A COURT FIGHT THAT WAS CUT TO 29000 FINALLY AFTER LONG HOURS OF LEGWORK BY VOLUNTEERS PATRIOT PARTY LEADERS ARRIVED IN HARRISBURG THE STATE CAPITAL ON MONDAY BEARING PETITIONS WITH ENOUGH SIGNATURES MR SURRICK INSISTS HE'S RUNNING TO WIN I'M NOT A KAMIKAZE PILOT HE SAYS THE PARTY ALSO IS CIRCULATING PETITIONS TO FIELD CANDIDATES FOR THE COUNTY COMMISSION HERE IN NORTHAMPTON COUNTY AND FOR MAYOR AND CITY COUNCIL IN NEARBY LANCASTER IT ALSO EXPECTS TO FIELD A CANDIDATE FOR A COMING SPECIAL ELECTION FOR A STATE SENATE SEAT OPENED BY THE DEATH OF AN INCUMBENT AND IT HOPES TO HAVE CONGRESSIONAL AND GUBERNATORIAL CANDIDATES NEXT YEAR BUT ALL THESE GOALS WOULD BE EASIER TO ACHIEVE WITH MORE MONEY AND THAT'S WHERE THE NEW PARTY'S GINGERLY RELATIONSHIP WITH MR PEROT COMES IN MR PEROT'S UNITED WE STAND AMERICA ORGANIZATION IS TECHNICALLY A NONPARTISAN ORGANIZATION THAT DOESN'T FIELD OR DIRECTLY ENDORSE CANDIDATES ITS CURRENT AIM IS TO HELP LEVEL THE PLAYING FIELD IN RACES BETWEEN INCUMBENTS AND CHALLENGERS OF ALL KINDS BY DOING SUCH THINGS AS STAGING DEBATES AND FORUMS TO OFFER OUTSIDERS MORE EXPOSURE OFFICIALLY THE PEROT ORGANIZATION GIVES ITS BLESSING TO THE PATRIOT PARTY EFFORTS HERE AND JUST BEFORE A RECENT PARTY MEETING HERE TO PLAN PETITION DRIVES CLAYTON MULFORD MR PEROT'S AIDE AND SONINLAW TELEPHONED MR SABATINE THE STATE CHAIRMAN TO DISCUSS THE PARTY'S PLANS BUT THAT'S THE EXTENT OF THE HELP SO FAR TO THE PARTY'S DISAPPOINTMENT PEROT MONEY WOULD GO A LONG WAY TO CLOSING THE FINANCIAL GAP BETWEEN THE NEW PARTY AND THE ESTABLISHED ONES IN THE RECENT SENATE RACE MR SABATINE ESTIMATES HIS CANDIDATE SPENT LESS THAN A TENTH OF THE AMOUNT RAISED BY THE REPUBLICAN WINNER EVEN WITHOUT DIRECT FINANCIAL HELP MR SABATINE FIGURES MR PEROT'S PERSONAL CLOUT WOULD BE INVALUABLE IF MR PEROT WERE TO COME INTO PENNSYLVANIA AND SAY I BELIEVE IN NICK SABATINE' THAT GIVES ME 20 OF THE VOTE IN PENNSYLVANIA MAYBE WITHOUT A SPENDING DRIVE HE SAYS BUT FOR NOW THE PEROT ORGANIZATION WANTS TO REMAIN SEPARATE FROM THE PATRIOT PARTY THE LOCAL LEADER OF UNITED WE STAND LOUISE ALLEN ATTENDED THE RECENT PARTY MEETING HERE BUT HER ROLE IS CLEARLY LIMITED ACCORDING TO HER INSTRUCTIONS FROM PEROT HEADQUARTERS IN DALLAS SHE SAYS OUR PEOPLE CAN VOLUNTEER WITH THE PATRIOT PARTY BUT WE CAN'T HOLD OFFICES SO FOR NOW PATRIOT PARTY ACTIVISTS MUST MULL HOW THEY CAN WIN UNDER THE EXISTING RULES WITHOUT COMPROMISING THEIR GOAL OF CHANGING ALL THE RULES MOST KNOW THEIR OUTSIDER STATUS MEANS THEY FACE A LONG SLOW CLIMB BUT THEY INSIST THEY PREFER THAT TO QUICK COMPROMISES ON THEIR IDEALISM IT'S NOT WORTH WINNING IF I BECOME WHAT I'VE OPPOSED SAYS KIRK HUMMEL A 32YEAROLD SOCIAL WORKER RUNNING FOR THE LANCASTER CITY COUNCIL ON THE PATRIOT TICKET I'M IN IT FOR THE LONG TERM I'M NOT COUNTING ON ROSS PEROT TO COME IN AND UNLEASH HIS PEOPLE IF I LOSE I'LL BE BACK IN TWO YEARS 9308040053 930804 HOW THE TAX PLAN WOULD AFFECT YOU RETIREES FACE A BIG JOLT BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL RETIREES SHARPEN YOUR PENCILS AND GET READY TO OPEN YOUR WALLETS IF THE TAX DEAL APPROVED BY HOUSE AND SENATE CONFEREES BECOMES LAW 55 MILLION SOCIAL SECURITY RECIPIENTS WILL FACE BIGGER TAX BILLS ACCORDING TO THE TREASURY DEPARTMENT THAT INCLUDES SEVERAL HUNDRED THOUSAND PEOPLE WHO WILL BE BUMPED INTO THE 28 TAX BRACKET FROM 15 MANY RETIREES COULD FIND THAT THEY OWE HUNDREDS OF DOLLARS MORE BEGINNING WITH THE 1994 TAX YEAR WHEN INCREASED TAXATION OF SOCIAL SECURITY BENEFITS IS TO TAKE EFFECT FOR SOME THE TAX RISE WILL BE 1000 OR MORE AMOUNTING TO AN INCREASE OF MORE THAN 10 AN UNMARRIED RETIREE WITH 35000 IN PENSION INCOME AND 13536 IN SOCIAL SECURITY BENEFITS FOR EXAMPLE WOULD PAY 7935 IN FEDERAL INCOME TAX UNDER THE NEW LAW COMPARED WITH 6715 UNDER EXISTING LAW ACCORDING TO CALCULATIONS BY ACCOUNTANTS DELOITTE & TOUCHE THE 1220 DIFFERENCE AMOUNTS TO AN 18 INCREASE THIS IS GOING TO HIT HARDEST AT MIDDLEINCOME SENIORS SAYS JANICE BERNSTEIN A 61YEAROLD RETIREE IN LOS ANGELES WHOSE 69YEAROLD HUSBAND RECEIVES SOCIAL SECURITY BENEFITS THERE'S A TREMENDOUS FEELING OF HELPLESSNESS CONGRESSIONAL TAX WRITERS DON'T CONSIDER THE MEASURE UNFAIR PEOPLE WITH 40000 IN INCOME FROM PENSIONS AND OTHER ASSETS USUALLY HAVE A FAIRLY SIGNIFICANT NET WORTH SAYS A SENATE FINANCE COMMITTEE STAFFER IT WOULD BE STRETCHING IT TO SAY WE'RE GOING AFTER PEOPLE WHO ARE HARD PRESSED IT COULD HAVE BEEN WORSE THE COMPROMISE BILL APPROVED BY HOUSE AND SENATE CONFEREES SETS HIGHER INCOME THRESHOLDS FOR INCREASED TAXATION OF SOCIAL SECURITY BENEFITS THAN THOSE PROPOSED BY PRESIDENT CLINTON IN FEBRUARY UNDER THE ADMINISTRATION PLAN INDIVIDUALS WHOSE INCOME INCLUDING HALF OF THEIR SOCIAL SECURITY BENEFITS EXCEEDS 25000 AND COUPLES WITH MORE THAN 32000 WOULD HAVE HAD AS MUCH AS 85 OF THEIR SOCIAL SECURITY BENEFITS TAXED COMPARED WITH UP TO 50 NOW THE COMPROMISE VERSION OF THE PROPOSAL RAISES INCOME THRESHOLDS FOR TAXATION OF UP TO 85 OF SOCIAL SECURITY BENEFITS TO 34000 FOR INDIVIDUALS AND 44000 FOR COUPLES INDIVIDUALS WITH INCOME BETWEEN 25001 AND 34000 AND COUPLES WITH BETWEEN 32001 AND 44000 IN INCOME WOULD CONTINUE TO HAVE AS MUCH AS 50 OF THEIR SOCIAL SECURITY BENEFITS TAXED JUST UNDER 13 OF ALL SOCIAL SECURITY RECIPIENTS WOULD FACE A TAX INCREASE UNDER THE LIKELY VERSION OF THE NEW LAW ACCORDING TO TREASURY DEPARTMENT ESTIMATES RETIREES WHOSE INCOME LEVELS ARE NEAR THE THRESHOLDS NEED TO BE CAREFUL ABOUT THE TIMING OF ANY ADDITIONAL INCOME THEY EARN THIS IS ONE SITUATION IN WHICH IT MAY MAKE SENSE TO TAKE INCOME THIS YEAR INSTEAD OF NEXT IF POSSIBLE TO AVOID THE BIGGER TAX BITE ON SOCIAL SECURITY BENEFITS GRANDPARENTS WANTING TO HELP WITH COLLEGE TUITION FOR EXAMPLE COULD MAKE WITHDRAWALS FROM INDIVIDUAL RETIREMENT ACCOUNTS IN DECEMBER RATHER THAN JANUARY OTHERS MIGHT DECIDE TO DEFER IRA WITHDRAWALS AND OTHER INCOME AS LONG AS POSSIBLE ON THE THEORY THAT OVER TIME AS YOUR ASSETS ARE DEPLETED THERE IS LESS CHANCE THE WITHDRAWALS WOULD PUT YOU OVER THE INCOME THRESHOLD SOME RETIREES MAY BE ABLE TO LOWER THEIR OVERALL TAX BILL BY SWITCHING MORE OF THEIR INVESTMENT PORTFOLIOS INTO TAXEXEMPT INVESTMENTS BUT THAT WON'T AFFECT TAXATION OF SOCIAL SECURITY BENEFITS TAXEXEMPT INCOME SUCH AS INTEREST ON MUNICIPAL BONDS IS INCLUDED WHEN CALCULATING WHETHER INCOME EXCEEDS THE THRESHOLDS WHAT'S MORE MANY RETIREES GET MOST OR ALL OF THEIR INCOME FROM PENSION PLANS THEY DON'T CONTROL INVESTMENTS THAT WOULD SHIFT INCOME INTO CAPITAL GAINS WHICH HAVE A MAXIMUM 28 TAX RATE GENERALLY WOULDN'T RESULT IN SAVINGS FOR MIDDLEINCOME RETIREES AND MIGHT ENTAIL MORE RISK THAN THEY WOULD BE WILLING TO UNDERTAKE THERE'S NOT A HECK OF A LOT THAT CAN BE DONE SAYS WILLIAM G BRENNAN A PARTNER WITH THE ACCOUNTING FIRM ERNST & YOUNG IN WASHINGTON THOSE WHO TAKE A JOB TO HELP MAKE ENDS MEET MAY FIND THEMSELVES FACING UNEXPECTEDLY HIGH TAX RATES ON THE ADDITIONAL INCOME THAT'S BECAUSE THEY WOULD HAVE TO PAY INCOME AND PAYROLL TAXES ON THEIR EARNINGS AND THE EXTRA INCOME COULD PUSH THEM INTO A HIGHER TAX BRACKET AND ABOVE THE THRESHOLD FOR INCREASED TAXATION OF SOCIAL SECURITY BENEFITS WAGES ABOVE A CERTAIN LEVEL ALSO WOULD LEAD TO A LOSS OF SOME SOCIAL SECURITY BENEFITS FOR A LOT OF PEOPLE IT WON'T MAKE ECONOMIC SENSE TO WORK SAYS DAVID CERTNER OF THE AMERICAN ASSOCIATION OF RETIRED PERSONS HE SAYS THAT FOR SOME RETIREES MARGINAL RATES THE TAX ON THE LAST DOLLAR OF INCOME EARNED COULD BE AS HIGH AS 60 INCLUDING SOCIAL SECURITY AND MEDICARE TAXES ON WAGES AND THE REDUCTION OF SOCIAL SECURITY BENEFITS CALCULATIONS BY DELOITTE & TOUCHE SHOW THAT A RETIRED COUPLE BETWEEN THE AGES OF 65 AND 69 FOR INSTANCE WITH 40000 IN PENSION INCOME AND 13536 IN SOCIAL SECURITY BENEFITS WOULD GET TO KEEP JUST 8305 OF AN ADDITIONAL 15000 IN EARNINGS FROM EMPLOYMENT AND THAT DOESN'T TAKE ANY STATE INCOME TAXES INTO ACCOUNT THEY WOULD PAY A TOTAL OF 5567 IN ADDITIONAL FEDERAL TAXES AND LOSE 1128 IN AFTERTAX SOCIAL SECURITY BENEFITS FOR A TOTAL EQUIVALENT TO A 44 MARGINAL RATE ON THE ADDITIONAL INCOME THAT'S HIGHER THAN THE MARGINAL TAX RATE MOST PEOPLE EARNING 250000 AND UP WOULD PAY UNDER THE PROPOSED NEW TAX LAW SEE RELATED STORY START NOW TO SOFTEN THE BLOW OF HIGHER RATES WSJ AUG 4 1993 9308040052 930804 BUSINESS BRIEF DELTA AIR LINES PACT IS SET WITH AEROMEXICO TO COORDINATE CONNECTIONS DELTA AIR LINES AND AEROMEXICO ANNOUNCED AN AGREEMENT TO SELL SEATS ON EACH OTHER'S FLIGHTS AND TO SHARE FLIGHT CODES IN AN EFFORT TO COORDINATE CONNECTIONS DELTA BASED IN ATLANTA AND AEROMEXICO BASED IN MEXICO CITY SAID THEY ARE CONTEMPLATING OTHER JOINT PROGRAMS IN OPERATIONS MAINTENANCE TRAINING AND PACKAGE VACATIONS THE AIRLINES HAVE ARRANGED TO RESERVE GROUPS OF SEATS ON EACH OTHER'S PLANES AND TO SHARE FLIGHT CODES WHICH PERMITS USE OF ONE FLIGHT NUMBER FOR TWO CONNECTING FLIGHTS ELIMINATING THE NEED FOR A PASSENGER TO CHECK IN TWICE THE CODESHARING ARRANGEMENT WILL APPLY TO FLIGHTS BETWEEN MEXICO CITY AND ATLANTA DALLASFORT WORTH NEW YORK AND ORLANDO FLA 9308040051 930804 BUSINESS BRIEF TOSCO CORP REFINER'S 2NDQUARTER PROFIT FELL 30 DESPITE SALES SURGE TOSCO CORP REPORTED A 30 DECLINE IN SECONDQUARTER NET INCOME AS IT CONTINUED TO STRUGGLE WITH GENERALLY LOWER REFINERY MARGINS THROUGHOUT THE US FOR THE QUARTER THE INDEPENDENT REFINER BASED IN STAMFORD CONN REPORTED NET INCOME OF 196 MILLLION OR 67 CENTS A SHARE COMPARED WITH 29 MILLION OR 96 CENTS A SHARE SALES INCREASED SHARPLY TO 9563 MILLION FROM 4771 MILLION THE COMPANY SAID ITS NEW BAYWAY REFINERY IN LINDEN NJ WHICH HAS OPERATED DURING THE LAST 80 DAYS OF THE 1993 SECOND QUARTER REPORTED OPERATING PROFIT OF 219 MILLION ON 5132 MILLION IN SALES TOSCO'S AVON REFINERY IN CALIFORNIA REPORTED 425 MILLION IN OPERATING PROFIT ON SALES OF 443 MILLION 9308040050 930804 BUSINESS BRIEF OXFORD HEALTH PLANS NET IN 2ND PERIOD SURGES 76 AMID CUTS ENROLLMENT RISE OXFORD HEALTH PLANS INC SAID COSTCUTTING MEASURES AND SURGING ENROLLMENT IN ITS MANAGED CARE PROGRAMS BOOSTED NET INCOME 76 IN THE SECOND QUARTER ON THE NEWS SHARES OF THE DARIEN CONN COMPANY ROSE 175 TO CLOSE AT 7850 IN OVERTHECOUNTER TRADING NET INCOME FOR THE QUARTER WAS 33 MILLION OR 41 CENTS A SHARE COMPARED WITH 19 MILLION OR 25 CENTS A SHARE A YEAR EARLIER REVENUE NEARLY DOUBLED IN THE QUARTER TO 701 MILLION FROM 362 MILLION THE COMPANY ALSO ANNOUNCED PLANS FOR A 2FOR1 SPLIT OF ITS COMMON STOCK SUBJECT TO SHAREHOLDER APPROVAL IN SEPTEMBER OF A PROPOSAL TO INCREASE THE NUMBER OF AUTHORIZED SHARES TO 25 MILLION FROM 13 MILLION OXFORD MARKETS SEVERAL DIFFERENT HEALTH BENEFIT PLANS TO EMPLOYERS IN NEW YORK NEW JERSEY AND CONNECTICUT 9308040049 930804 CORRECTIONS & AMPLIFICATIONS KEYSTONE GROUP INC OF BOSTON OWNS SHARES IN CONTINENTAL AIRLINES IT HAS NO AFFILIATION WITH KEYSTONE HOLDINGS A COMPANY CONTROLLED BY FINANCIER ROBERT BASS YESTERDAY'S HEARD ON THE STREET COLUMN INCORRECTLY IDENTIFIED KEYSTONE HOLDINGS AS A CONTINENTAL CREDITOR AND SHAREHOLDER CIPSCO INC'S SECONDQUARTER NET INCOME FOR BOTH 1993 AND 1992 WERE GREATLY OVERSTATED IN MONDAY'S REPORT ON CORPORATE PERFORMANCE RESULTING IN INCORRECT PROFIT TOTALS FOR THE ELECTRIC UTILITY CATEGORY AND THE 609 COMPANIES SURVEYED CIPSCO EARNED 12670000 IN THE LATEST QUARTER DOWN FROM 16450000 A YEAR EARLIER NET FOR THE ELECTRIC UTILITY GROUP ROSE 3 TO 2764442000 FROM 2692652000 WHILE NET FOR ALL 609 COMPANIES WAS 39511096000 UP 11 FROM 35567327000 A YEAR EARLIER THE EARNINGS CORRECTION DOESN'T AFFECT THE ROUNDEDOFF PERCENTAGE CHANGES REPORTED MONDAY 9308040048 930804 BUSINESS BRIEF CHIRON CORP SECONDQUARTER NET INCOME OF 54 MILLION REVERSES LOSS CHIRON CORP EMERYVILLE CALIF SAID SECONDQUARTER EARNINGS REVERSED A YEAREARLIER LOSS PRIMARILY ON SALES OF CANCER AND EYECARE PRODUCTS AND ON INCREASED COLLABORATIVE RESEARCH REVENUE CHIRON'S NET INCOME OF 54 MILLION OR 16 CENTS A SHARE COMPARES WITH A YEAREARLIER LOSS OF 38 MILLION OR 13 CENTS A SHARE SECONDQUARTER SALES ROSE JUST UNDER 1 TO 33 MILLION FROM 328 MILLION THE EARNINGS WERE AT THE TOP END OF ANALYSTS' EXPECTATIONS CHIRON SAID COLLABORATIVE RESEARCH REVENUE ROSE TO 201 MILLION FROM 124 MILLION MOST OF THE REVENUE CAME FROM RESEARCH PARTNER CIBAGEIGY LTD FOR THE SIX MONTHS THE BIOTECHNOLOGY COMPANY POSTED NET OF 79 MILLION OR 24 CENTS A SHARE COMPARED WITH A LOSS OF 449 MILLION OR 152 A SHARE SALES GREW 11 TO 617 MILLION CHIRON ALSO SAID IT IS EXPANDING MANUFACTURING CAPACITY TO HANDLE ANTICIPATED DEMAND FOR ITS RECENTLY APPROVED MULTIPLE SCLEROSIS DRUG BETASERON 9308040047 930804 BUSINESS BRIEF NORTHINGTON PARTNERS INVESTMENT FIRM IS TO BUY COVENANT MUTUAL INSURANCE NORTHINGTON PARTNERS AVON CONN WITH LOAN GUARANTEES FROM THE STATE OF CONNECTICUT PLANS TO ACQUIRE COVENANT MUTUAL INSURANCE CO WHICH WAS PLACED IN INSOLVENCY IN LATE 1992 THE PLAN WHICH REQUIRES CERTAIN APPROVALS CALLS FOR NORTHINGTON TO ACQUIRE THE NAME LICENSE AND CHARTER OF COVENANT THE COMPANY'S ASSETS AND LIABILITIES WILL BE PLACED IN A LIQUIDATING TRUST AT THE END OF 1991 COVENANT MUTUAL INSURANCE HAD ABOUT 43 MILLION IN ASSETS NORTHINGTON PLANS TO RAISE AS MUCH AS 18 MILLION THROUGH DEBT AND EQUITY ISSUES THE INVESTMENT BANKING FIRM PLANS TO RAISE EQUITY THROUGH A STOCK OFFERING THAT WILL DEMUTUALIZE THE COMPANY THE CONNECTICUT DEVELOPMENT AUTHORITY SAID IT WOULD GUARANTEE 40 OF A 10 MILLION LOAN THAT WILL HELP FINANCE THE TRANSACTION COVENANT MUTUAL INSURANCE RAN INTO FINANCIAL PROBLEMS FOLLOWING STEEP LOSSES STEMMING FROM HURRICANE ANDREW LAST YEAR 9308040046 930804 BUSINESS BRIEF HARRIS CORP FIRM REPORTS 52 INCREASE IN FISCAL 4THQUARTER NET HARRIS CORP REPORTED THAT ITS FISCAL FOURTHQUARTER EARNINGS JUMPED 52 ON HIGHER SALES OF SEMICONDUCTORS AND ELECTRONIC SYSTEMS THE RESULTS WHICH EXCEEDED ANALYSTS' EXPECTATIONS HELPED PUSH UP HARRIS'S STOCK PRICE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE SHARES CLOSED AT 42875 UP 375 OR 96 THE MELBOURNE FLA MAKER OF ELECTRONICS AND COMMUNICATION SYSTEMS SAID NET INCOME FOR THE QUARTER ENDED JUNE 30 ROSE TO 375 MILLION OR 95 CENTS A SHARE FROM 247 MILLION OR 63 CENTS A SHARE A YEAR EARLIER THE YEARAGO QUARTER INCLUDED A LOSS FROM DISCONTINUED OPERATIONS OF 93 MILLION OR 24 CENTS A SHARE REVENUE INCREASED 37 TO 8585 MILLION FROM 8278 MILLION HARRIS NOTED THAT OPERATING PROFITS IN ITS SEMICONDUCTOR BUSINESS ROSE SUBSTANTIALLY IN THE FISCAL FOURTH QUARTER MARKING THE FIFTH CONSECUTIVE QUARTER OF EARNINGS IMPROVEMENT FOR THAT BUSINESS FOR ALL OF FISCAL 1993 HARRIS REPORTED THAT EARNINGS ROSE 48 TO 1111 MILLION OR 282 A SHARE FROM 752 MILLION OR 192 A SHARE A YEAR EARLIER REVENUE INCREASED 32 TO 31 BILLION FROM 3 BILLION 9308040045 930804 WHAT'S NEWS WORLDWIDE CLINTON DEMANDED AN END TO THE MISERY IN BOSNIA AMID TALK OF AIR ATTACKS ARMED WITH NATO'S APPROVAL OF HIS PLAN TO USE AIR POWER IN BOSNIA THE PRESIDENT CALLED FOR AN END TO THE SUFFERING IN SARAJEVO BEFORE ANOTHER WINTER OF GRAVE GRAVE DIFFICULTIES BEGINS THE WHITE HOUSE DID NOT SAY WHAT WOULD TRIGGER AN AIR STRIKE NATO ALLIES WILL MEET MONDAY TO HEAR FROM MILITARY ADVISERS ON THE LOGISTICS OF PROTECTING THE BOSNIAN CAPITAL THROUGH AIR ATTACKS I DON'T THINK THERE IS A FIRM TIME LINE BUT THE CLOCK IS TICKING A WHITE HOUSE SPOKESWOMAN SAID IN BOSNIA A SERB AIR FORCE COMMANDER WARNED THAT IF AMERICAN FIGHTERS ATTACK HIS FORCES INTEND TO FIRE BACK WITH ALL THEIR MIGHT OFFICIALS IN ILLINOIS TORE DOWN PART OF A LEVEE ABOUT THREE MILES UPSTREAM FROM THE 18THCENTURY VILLAGE OF PRAIRIE DU ROCHER HOPING TO DEFLECT THE RISING WATERS OF THE MISSISSIPPI RIVER AND SAVE THE TOWN ABOUT 58000 ACRES OF FARMLAND A DOZEN HOUSES AND A RESTORED FRENCH FORT WERE PURPOSELY FLOODED THE US GOVERNMENT MUST ALLOW JOHN DEMJANJUK TO RETURN TO THE US WHILE A COURT INVESTIGATES THE GOVERNMENT'S HANDLING OF HIS 1986 EXTRADITION TO ISRAEL A THREEJUDGE APPEALS PANEL SAID IN CINCINNATI AN ISRAELI COURT RULED LAST WEEK THAT THERE WAS INCONCLUSIVE EVIDENCE DEMJANJUK WAS NAZI CAMP GUARD IVAN THE TERRIBLE THE SENATE APPROVED A BILL GIVING STUDENTS EDUCATION AID IN RETURN FOR COMMUNITY SERVICE THE 5841 VOTE WAS A VICTORY FOR CLINTON ALTHOUGH THE LEGISLATION IS SCALED BACK FROM THE PRESIDENT'S EARLIER MORE AMBITIOUS PLANS THE BILL GOES TO A HOUSESENATE CONFERENCE WHERE A FINAL VERSION WILL BE HAMMERED OUT A LAWYERS' GROUP ENDORSED THE FORMATION OF UNIFIED COURT SYSTEMS TO HANDLE FAMILYRELATED ISSUES THE AMERICAN BAR ASSOCIATION PANEL ISSUED A REPORT THAT DESCRIBES A CONFUSING SYSTEM IN WHICH FAMILIES MUST GO FROM ONE COURT TO ANOTHER TO SOLVE SUCH RELATED PROBLEMS AS CHILD ABUSE CUSTODY AND SOCIAL SERVICES SOME LOGGING COULD RESUME SOON IN THE PACIFIC NORTHWEST UNDER A TENTATIVE PACT REACHED BETWEEN THE CLINTON ADMINISTRATION AND ENVIRONMENTAL OPPONENTS OF ITS NEW TIMBER POLICY CHRISTOPHER MET WITH A PALESTINIAN DELEGATION IN JERUSALEM AFTER WARNING AGAINST EXPECTATIONS FOR RAPID PROGRESS IN THE MIDEAST PEACE PROCESS EARLIER THE SECRETARY OF STATE SPOKE WITH ISRAELI PRIME MINISTER RABIN I EXPECT NO BREAKTHROUGHS NO DRAMATIC DEVELOPMENTS CHRISTOPHER SAID UPON HIS ARRIVAL FROM CAIRO OVER 350 IRS WORKERS WERE INVESTIGATED FOR ALLEGEDLY SNOOPING THROUGH THE COMPUTERIZED TAX ACCOUNTS OF FRIENDS RELATIVES AND CELEBRITIES A REPORT ON THE INCIDENTS ALSO CITES EVIDENCE THAT AT LEAST SIX EMPLOYEES USED IRS COMPUTERS TO PREPARE FRAUDULENT TAX RETURNS THE SENATE EASILY CONFIRMED THE NOMINATION OF APPEALS COURT JUDGE RUTH BADER GINSBURG TO THE SUPREME COURT THE VOTE WAS 963 THE WHITE HOUSE SAID JUDGE GINSBURG WILL BE SWORN IN TUESDAY ALLOWING HER TO BEGIN PREPARATIONS FOR THE HIGH COURT'S TERM THAT STARTS OCT THE SENATE JUDICIARY COMMITTEE VOTED UNANIMOUSLY TO CONFIRM FEDERAL DISTRICT JUDGE LOUIS FREEH'S NOMINATION AS FBI DIRECTOR A VOTE ON THE SENATE FLOOR IS EXPECTED THIS WEEK THE POSTAL SERVICE PROJECTED A 15 BILLION LOSS NEXT YEAR BUT OFFICIALS PROMISED NOT TO SEEK HIGHER POSTAGE RATES UNTIL 1995 NEXT YEAR'S EXPECTED LOSS WOULD COME ON TOP OF A PROJECTED 500 MILLION DEFICIT FOR THE CURRENT FISCAL YEAR FORMER PRESIDENT NIXON HAS GONE TO COURT TO STOP THE NATIONAL ARCHIVES FROM PROCEEDING WITH THE FIRST PUBLIC RELEASE OF FOUR HOURS OF WHITE HOUSE CONVERSATIONS TAPED AFTER THE WATERGATE BREAKIN CLINTON SIGNED INTO LAW A MEASURE AIMED AT IMPROVING GOVERNMENT EFFICIENCY TITLED THE GOVERNMENT PERFORMANCE AND RESULTS ACT OF 1993 THE LAW REQUIRES US AGENCIES TO DEVISE STRATEGIC PLANS AND SET YEARLY GOALS COLOMBIA'S CONSTITUTIONAL COURT SAID AUTHORITIES CAN'T DETAIN SUSPECTS FOR MORE THAN SIX MONTHS WITHOUT A TRIAL THE RULING COULD LEAD TO THE RELEASE OF SOME 1600 SUSPECTED DRUG TRAFFICKERS AND TERRORISTS 9308040044 930804 BUSINESS BRIEF WESTERN MICRO TECHNOLOGY INC RESTRUCTURING PROXY FIGHT LEAD TO SECONDQUARTER LOSS WESTERN MICRO TECHNOLOGY INC SAID EXPENSES FROM A RESTRUCTURING AND A PROXY FIGHT LEFT IT WITH A LOSS OF 16 MILLION OR 51 CENTS A SHARE IN THE SECOND QUARTER THE SARATOGA CALIF ELECTRONIC SYSTEMS DISTRIBUTOR SAID IT SPENT 15 MILLION ON WORK FORCE REDUCTIONS AS PART OF ITS RESTRUCTURING AND ON LEGAL AND SETTLEMENT COSTS CONNECTED WITH ITS PROXY BATTLE WITH VENTURE GROWTH ASSOCIATES IN THE YEARAGO QUARTER WESTERN MICRO HAD NET INCOME OF 12000 SALES FOR THE LATEST QUARTER WERE 219 MILLION UP 5 FROM 209 MILLION A YEAR AGO AS PART OF THE PROXYFIGHT SETTLEMENT WESTERN MICRO SAID IT ELECTED THREE NEW MEMBERS TO ITS BOARD BRINGING THE FULL BOARD TO SEVEN MEMBERS THE NEW MEMBERS ARE MARK PARRISH JR 62 A MANAGEMENT CONSULTANT GREGORIO REYES 52 CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SUNWARD TECHNOLOGIES INC AND K WILLIAM SICKLER 44 PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NETWORK COMPUTING INC 9308040043 930804 BUSINESS BRIEF NORTHEAST UTILITIES EARLY RETIREMENT PROGRAM MAY SPUR 3RDPERIOD CHARGE NORTHEAST UTILITIES SAID IT COMMENCED A VOLUNTARY EARLY RETIREMENT PROGRAM TO TRIM ITS WORK FORCE AND EXPECTS TO TAKE A RELATED THIRDQUARTER CHARGE A SPOKESMAN SAID THE COSTCUTTING PROGRAM COULD RESULT IN A CHARGE OF ABOUT 21 MILLION ASSUMING THAT 400 OF 800 ELIGIBLE EMPLOYEES ACCEPT THE OFFER NORTHEAST SAID INTENSE COMPETITIVE PRESSURES AND A PROLONGED RECESSION IN NEW ENGLAND PROMPTED THE MOVE IN THE YEARAGO THIRD QUARTER NET INCOME WAS 633 MILLION OR 47 CENTS A SHARE ON REVENUE OF 8677 MILLION THE HARTFORD CONN UTILITY SAID IT PLANS TO CUT ITS WORK FORCE AS MUCH AS 7 BY THE END OF 1994 IF FEWER THAN 600 WORKERS ACCEPT THE EARLY RETIREMENT OFFER BY SEPT 17 NORTHEAST SAID IT WILL LAY OFF EMPLOYEES THROUGHOUT ITS 10000 MEMBER WORK FORCE TO TAKE EFFECT IN NOVEMBER IF LAYOFFS OCCUR THE COMPANY WILL TAKE A CHARGE IN THE FOURTH QUARTER WHICH IT EXPECTS WOULD BE SMALLER THAN THE THIRDQUARTER CHARGE A SPOKESMAN SAID NORTHEAST SAID IT ALSO PLANS TO REQUIRE HIGHER PAYMENTS FOR HEALTH INSURANCE COVERAGE FOR EMPLOYEES RETIRING AFTER 1994 SAVING THE COMPANY ABOUT 7 MILLION ANNUALLY THE SPOKESMAN SAID 9308040042 930804 BUSINESS BRIEF ETHAN ALLEN INTERIORS INC CONCERN IS OPTIMISTIC IT MET PROFIT ESTIMATES FOR PERIOD ETHAN ALLEN INTERIORS INC SAID IT BELIEVES IT MET ANALYSTS' EXPECTATIONS OF FISCAL FOURTHQUARTER EARNINGS OF 28 CENTS TO 30 CENTS A SHARE THAT WOULD PUT NET INCOME FOR THE QUARTER ENDED JUNE 30 AT ALMOST 4 MILLION COMPARED WITH A LOSS IN THE 1992 QUARTER OF 112 MILLION OR A PROFORMA 39 CENTS A SHARE THE DANBURY CONN FURNITURE MAKER AND RETAILER WENT PUBLIC IN FEBRUARY AT 18 A SHARE THE 1992 QUARTER INCLUDED A RESTRUCTURING CHARGE OF 119 MILLION FOR THE CONSOLIDATION OF CERTAIN MANUFACTURING FACILITIES FAROOQ KATHWARI CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAYS THE CONCERN ALSO EXPECTS TO MEET PROJECTIONS OF ABOUT A 10 GROWTH IN REVENUE TO 100 MILLION FOR THE YEAR ETHAN ALLEN IS COMFORTABLE WITH ANALYST ESTIMATES OF SALES GROWING 91 TO 383 MILLION EARNINGS ESTIMATES ARE IN THE 108 AND 110 RANGE OR ABOUT 144 MILLION COMPARED WITH A LOSS OF 288 MILLION IN THE 1992 FISCAL YEAR OR A PROFORMA 13 CENTS A SHARE IN TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY ETHAN ALLEN SHARES CLOSED AT 19125 UP 125 CENTS 9308040041 930804 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN MIDWEST FLOOD VICTIMS FACE TRICKY CHOICES IN CALCULATING CASUALTY LOSSES TYPICALLY AN INDIVIDUAL CAN CLAIM A CASUALTY LOSS ONLY FOR THE YEAR IN WHICH THE LOSS OCCURS BUT WHEN THE PRESIDENT DESIGNATES A PLACE AS A DISASTER AREA VICTIMS HAVE THE OPTION OF CLAIMING LOSSES ON THE IMMEDIATELY PRECEDING YEAR'S RETURN THAT ENABLES THEM TO FILE AMENDED RETURNS AND GET SPEEDIER REFUNDS BUT THIS STRATEGY ISN'T ALWAYS SO SMART MANY FLOOD VICTIMS WITH LESS INCOME THIS YEAR MIGHT BE EVEN BETTER OFF CLAIMING THE LOSS FOR 1993 NOT 1992 SAYS CAROL CARUTHERS OF PRICE WATERHOUSE IN ST LOUIS THAT'S BECAUSE INDIVIDUALS CAN DEDUCT UNREIMBURSED LOSSES ABOVE A 100 THRESHOLD PER CASUALTY ONLY TO THE EXTENT THAT THOSE LOSSES EXCEED 10 OF ADJUSTED GROSS INCOME MEANWHILE TAKE A TIP FROM THE IRS BEFORE CLEANING UP TAKE DETAILED PHOTOS OF DAMAGE TO DOCUMENT YOUR CASE OUCH THOSE NEW TOP TAX RATES WOULD BE EVEN HIGHER THAN MANY PEOPLE MAY SUSPECT THE TOP TWO MARGINAL RATES WOULD RISE TO 36 AND 396 THIS YEAR FROM 31 PREVIOUSLY BUT MANY UPPERINCOME AMERICANS ACTUALLY WOULD PAY WELL OVER 40 ACCORDING TO TWO ACCOUNTING FIRMS DELOITTE & TOUCHE AND ERNST & YOUNG IN SOME CASES THE TOP RATE COULD EVEN EXCEED 44 NEXT YEAR THIS REFLECTS THE NEW RATES PLUS SEVERAL BACKDOOR INCREASES SUCH AS LIMITS ON ITEMIZED DEDUCTIONS AND PERSONAL EXEMPTIONS ALREADY IN CURRENT LAW SOME UPPERINCOME SELFEMPLOYED WORKERS WITH LARGE FAMILIES WOULD BE HIT ESPECIALLY HARD DELOITTE SAYS CURIOUSLY SOME PEOPLE IN THE NEW 36 BRACKET WOULD BE TAXED AT AN EVEN HIGHER RATE THAN PEOPLE IN THE 396 BRACKET AND ALL THESE CALCULATIONS COME BEFORE INCLUDING STATE AND LOCAL TAXES ALL TOLD DELOITTE SAYS SOME UPPERINCOME NEW YORK CITY RESIDENTS WOULD PAY A TOP MARGINAL RATE OF ABOUT 50 A THORNY DILEMMA CONFRONTS CLINTON IN AN INTERNATIONAL TAX BATTLE AT ISSUE IS AN AGGRESSIVE APPROACH CALIFORNIA USES TO TAX MULTINATIONAL COMPANIES BARCLAYS BANK HAS APPEALED TO THE SUPREME COURT TO REJECT THE UNITARY SYSTEM IN WHICH A STATE CONSIDERS A MULTINATIONAL'S WORLDWIDE RESULTS NOT JUST ITS REPORTED EARNINGS WITHIN THE STATE TO FIGURE THE COMPANY'S TAX BILL THE EUROPEANAMERICAN CHAMBER OF COMMERCE CALLS THIS SYSTEM A MEATCLEAVER APPROACH AND UNCONSTITUTIONAL CALIFORNIA MODIFIED ITS APPROACH SEVERAL YEARS AGO BUT DIDN'T APPEASE CRITICS SAYS GRAEME COTTAM OF PRICE WATERHOUSE BRITAIN THREATENS TO RETALIATE AGAINST USBASED MULTINATIONALS UNLESS A SATISFACTORY RESOLUTION IS REACHED BY YEAR END THE HIGH COURT ASKED THE CLINTON ADMINISTRATION FOR ITS VIEWS ON THE BARCLAYS CASE THE JUSTICE DEPARTMENT IS WRITING A REPLY LAST YEAR THENCANDIDATE CLINTON SIDED WITH CALIFORNIA BUT TAKING THAT STANCE NOW WOULD ANGER US TRADING PARTNERS AND RISK RETALIATION AGAINST US MULTINATIONALS ONE POSSIBLE SOLUTION PERSUADE CALIFORNIA LAWMAKERS TO CHANGE THEIR LAWS FURTHER CALIFORNIA LEGISLATORS NOW ARE CONSIDERING ALTERNATIVES SORRY MOM A MOTHERTOBE CALLED NEW YORK'S TAX DEPARTMENT TO ASK IF SHE COULD AMEND HER RETURN THE DOCTOR HAD JUST TOLD HER SHE WAS EXPECTING TWINS SHE HAD CLAIMED ONLY ONE OF THEM AS A DEPENDENT BUT YOU CAN'T EVEN CLAIM ONE SHE WAS TOLD DEPENDENTS MUST BE BORN TO QUALIFY NEW YORKERS WILL OWE AN ADDED 5 EXCISE TAX ON PHONE CALLS TO INFORMATION AND ENTERTAINMENT SERVICES SUCH AS THOSE REACHABLE BY DIALING 900 THE INCREASE STARTING SEPT 1 WILL RAISE ABOUT 10 MILLION A YEAR THE STATE ESTIMATES NEVER MIND THE IRS SAYS IT HAS CORRECTED ERRONEOUS NOTICES SENT RECENTLY TO 4623 TAXPAYERS INCLUDING SOME WHO WERE DUNNED FOR 68 BILLION APIECE THE ERRORS WERE AN UNINTENDED RESULT OF A COMPUTER PROGRAM CHANGE TO KEEP MIDWEST FLOOD VICTIMS FROM BEING BILLED LOW GRADES GO TO THE IRS IN A CONGRESSIONAL AGENCY AUDIT THE GENERAL ACCOUNTING OFFICE DELIVERS BITING CRITICISM OF THE IRS'S FINANCIAL STATEMENTS AND INTERNAL CONTROLS THE GAO SAYS IT CAN'T EVEN EXPRESS AN OPINION ON THE RELIABILITY OF THE IRS' PRINCIPAL FINANCIAL STATEMENTS FOR 1992 THAT'S BECAUSE CRITICAL SUPPORTING INFORMATION WAS NOT AVAILABLE THE GAO SAYS AND WHERE INFORMATION WAS AVAILABLE WE FOUND THAT IT WAS GENERALLY UNRELIABLE INTERNAL CONTROLS AT THE IRS DID NOT EFFECTIVELY SAFEGUARD ASSETS COMPTROLLER GENERAL BOWSHER WROTE CONGRESS IRS CONTROLS ALSO DIDN'T PROVIDE A REASONABLE BASIS FOR DETERMINING MATERIAL COMPLIANCE WITH LAWS AND REGULATIONS HE SAID GAO WAS UNABLE TO TEST ALL SIGNIFICANT CONTROLS DUE TO LIMITS ON IRS DATA AVAILABILITY BUT THE IRS COOPERATED FULLY AND HAS MADE PROGRESS IN DEVELOPING RELIABLE INFORMATION THE GAO SAYS AN IRS OFFICIAL SAYS IT WILL TAKE TIME TO REMEDY THE SITUATION WE THINK WE HAVE MADE A GOOD START AND WE UNDERSTAND THE IMPORTANCE OF GETTING OUR HOUSE IN ORDER THE IRS ADDS BRIEFS HOLLYWOOD AND TAXES IN THE FIRM A MOVIE BASED ON JOHN GRISHAM'S BESTSELLER A MOB LAWYER DESCRIBES TAX LAW AS A GAME WE TEACH THE RICH HOW TO PLAY SO THEY CAN STAY RICH THE IRS KEEPS CHANGING THE RULES SO WE CAN KEEP GETTING RICH TEACHING THEM SEN DOLE R KAN SAYS DEMOCRATS SHOULDN'T MAKE TAX HIKES RETROACTIVE TO JAN 1 YOU WOULD THINK THAT AS A COURTESY HE SAYS THEY INSTEAD SHOULD PICK JAN 20 INAUGURATION DAY 9308040040 930804 POLITICS & POLICY DOING THE DEAL THE DEFICITREDUCTION CONFERENCE CLINTON CONTINUES TO PRESS CONGRESS FOR PASSAGE OF DEFICITCUTTING BILL WITH TV SPEECH CHARTS BY JEFFREY H BIRNBAUM AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON CAPPED A FRENETIC LOBBYING EFFORT ON BEHALF OF HIS DEFICITREDUCTION BILL WITH A TELEVISED SPEECH FROM THE OVAL OFFICE BUT HE STILL HAS WORK TO DO TO CLOSE THE DEAL WITH CONGRESS MR CLINTON USED CHARTS REMINISCENT OF THOSE USED BY ROSS PEROT AND HE ASSERTED THAT PASSAGE OF THE PLAN IS ESSENTIAL TO THE ECONOMY HE ALSO EMPHASIZED THAT THE MEASURE IS THE NECESSARY FIRST STEP OF HIS AMBITIOUS LEGISLATIVE AGENDA THE PRESIDENT VIGOROUSLY DISPUTED THE NOTION THAT HIS PACKAGE IS BUSINESS AS USUAL WHY IS IT SO HARD FOR SO MANY IN THIS CITY TO BREAK THE BAD HABITS OF THE PAST AND TAKE THE STEPS WE ALL KNOW WE HAVE TO TAKE HE ASKED HIS PLAN HE ADDED IS FUNDAMENTALLY DIFFERENT THAN BUSINESS AS USUAL THE CHOICE HE ASSERTED POINTEDLY IS OUR PLAN OR NO PLAN BUT HE ALSO SAID THERE ARE FOUR REASONS TO BACK IT IT WOULD CUT THE BUDGET DEFICIT SHARPLY INCREASE TAXES LARGELY ON THOSE MOST ABLE TO PAY PROTECT OLDER AMERICANS FROM BIG CUTS IN SOCIAL SECURITY AND KEEP FAITH WITH WORKING FAMILIES BY COSTING THEM LESS THAN A DIME A DAY IN NEW TAXES TO REASSURE AMERICANS THAT DEFICITREDUCTION REALLY WILL BE ACHIEVED MR CLINTON SAID HE WOULD SIGN TWO EXECUTIVE ORDERS TODAY ONE WILL CREATE A DEFICIT REDUCTION TRUST FUND INTO WHICH INCREASED TAX REVENUES AND MONEY SAVED FROM SPENDING CUTS ARE SUPPOSED TO GO A MECHANISM ONCE CRITICIZED BY DEPUTY WHITE HOUSE BUDGET DIRECTOR ALICE RIVLIN AS A DISPLAY DEVICE THE OTHER WOULD REQUIRE THE PRESIDENT TO NOTIFY CONGRESS IF SPENDING ON BENEFIT PROGRAMS EXCEEDS PROJECTIONS AND TO MAKE PROPOSALS TO OFFSET THE INCREASE BUT DESPITE THESE ARGUMENTS AND A WHIRLWIND OF PUBLIC EVENTS AND PRIVATE MEETINGS OVER THE PAST THREE WEEKS WHITE HOUSE OFFICIALS AND SENIOR LAWMAKERS AGREED THAT THE VOTE PROBABLY ON FRIDAY WILL BE CLOSE IN BOTH CHAMBERS OF CONGRESS INDEED IT STILL WASN'T CERTAIN THAT THE FIVEYEAR 496 BILLION MEASURE HAS ENOUGH SUPPORT TO PASS IN THE EVERRELUCTANT SENATE IN A TELEVISED REPLY SENATE REPUBLICAN LEADER BOB DOLE OF KANSAS BLASTED MR CLINTON FOR SUPPORTING THE LARGEST TAX INCREASE IN THE HISTORY OF THE WORLD MR DOLE SAID THE BILL DOESN'T REALLY CUT GOVERNMENT SPENDING ONLY SLOWS ITS GROWTH AND HE ARGUED THAT MOST OF THE SPENDING RESTRAINT WOULDN'T OCCUR UNTIL AFTER THE 1996 ELECTION IT DOESN'T CREATE JOBS DOESN'T SOLVE THE DEFICIT PROBLEM HE SAID BUT THE ALTERNATIVE THAT SEN DOLE OFFERED IN THE SENATE HAD MANY OF THE SAME CHARACTERISTICS THOUGH IT WOULDN'T RAISE TAXES NEITHER WOULD IT REALLY CUT GOVERNMENT SPENDING MOST OF ITS SPENDING RESTRAINT ALSO WOULD COME AFTER THE 1996 ELECTION AND IT WOULD REDUCE THE PROJECTED DEFICIT BY 100 BILLION LESS OVER FIVE YEARS THAN THE CLINTONBACKED PLAN IN A EFFORT TO INFLUENCE THE HANDFUL OF DEMOCRATIC SENATORS WHO HE HOPES WILL VOTE AGAINST THE PRESIDENT MR DOLE WORKED IN REFERENCES TO THEIR HOME STATES NEVADA WISCONSIN CALIFORNIA GEORGIA CONNECTICUT AND ARIZONA EARLIER DEMOCRATIC LEADERS ASSERTED THAT THE BILL WILL PASS SENATE MAJORITY LEADER GEORGE MITCHELL SAID NEVER FEAR NEVER DOUBT TO HELP THE CAUSE FURTHER PRESIDENT CLINTON PLANS TO ADDRESS THE HOUSE DEMOCRATIC CAUCUS THIS MORNING IF THE MEASURE DOES PASS IT WILL ONLY BE AFTER BOTH THE PRESIDENT AND CONGRESS'S TOP DEMOCRATS APPLIED ENORMOUS AMOUNTS OF POLITICAL ELBOW GREASE AND BACKROOM DEALCUTTING YESTERDAY SEVERAL HOUSE DEMOCRATS EXPRESSED ANGER OVER REPORTS THAT PROVISIONS WERE ADDED CHANGED OR DROPPED FROM THE BILL TO GET THE VOTES OF CERTAIN SENATORS EVEN THOUGH MR CLINTON OR HIS AGENTS FAILED TO GET PROMISES OF SUPPORT FOR THE BILL FROM THOSE SENATORS IN RETURN FOR EXAMPLE SENS JOSEPH LIEBERMAN OF CONNECTICUT AND DIANNE FEINSTEIN OF CALIFORNIA GOT THE SENATEAPPROVED SURTAX ON CAPITAL GAINS DELETED AND A CAPITALGAINS TAX BREAK ADDED FOR INVESTORS IN CERTAIN STARTUP COMPANIES BUT BOTH DEMOCRATS WHO VOTED FOR THE ORIGINAL SENATE BILL REMAINED ON THE FENCE SIMILAR CONCERN WAS VOICED ABOUT SEN DENNIS DECONCINI OF ARIZONA HE IS ONE OF THE SIX DEMOCRATIC SENATORS WHO VOTED NO BUT HE IS CONSIDERED ONE OF THE MOST LIKELY TO SWITCH MR CLINTON MENTIONED MR DECONCINI BY NAME LAST NIGHT PUBLICLY CREDITING HIM FOR THE DEFICITREDUCTION TRUST FUND IDEA IN AN APPARENT CONCESSION TO SEN DECONCINI NEGOTIATORS REDUCED THE NUMBER OF UPPERINCOME SOCIAL SECURITY BENEFICIARIES WHO WOULD PAY MORE TAXES ON THEIR BENEFITS STILL SEN DECONCINI REMAINED UNDECIDED YESTERDAY SAYING HE WOULD MAKE UP HIS MIND BY TODAY THREE DEMOCRATIC SENATORS WHO VOTED NO INITIALLY BENNETT JOHNSTON OF LOUISIANA FRANK LAUTENBERG OF NEW JERSEY AND RICHARD SHELBY OF ALABAMA SAID THEY WOULD OPPOSE THE BILL AGAIN IN ADDITION A SPOKESMAN FOR SEN SAM NUNN WHO ALSO VOTED NO WHEN THE BILL ORIGINALLY CAME UP IN THE SENATE SAID THE GEORGIA DEMOCRAT IS STILL LEANING AGAINST IT IN THE HOUSE DEMOCRATIC LEADERS STRUGGLED TO STAVE OFF DEFECTIONS EVEN THOUGH THE CONGRESSIONAL BLACK CAUCUS HAS ENDORSED THE BUDGET PLAN THREE MEMBERS OF THE GROUP REPS CLEO FIELDS D LA BARBARAROSE COLLINS D MICH AND EARL HILLIARD D ALA ARE WAVERING MOREOVER REP NEAL SMITH D IOWA SAID HE WILL VOTE NO UNLESS THE PACKAGE DIRECTS NEW FUELTAX REVENUE INTO HIGHWAY PROGRAMS INSTEAD OF DEFICIT REDUCTION AND DEMOCRATIC REPS WILLIAM BREWSTER AND DAVE MCCURDY OF OKLAHOMA WERE CONSIDERED POSSIBLE NO VOTES BECAUSE OF THE OPPOSITION TO THE BILL ANNOUNCED BY THEIR STATE'S SENIOR SENATOR DAVID BOREN REP NEIL ABERCROMBIE D HAWAII ALSO WAS SAID TO BE WAVERING ONE BIG REASON FOR THE PRESIDENT'S DIFFICULTY IS THE PAIN THAT THE BILL WOULD INFLICT OVER FIVE YEARS IT WOULD RAISE TAXES A NET 241 BILLION INCLUDING A 43CENTAGALLON INCREASE IN THE MOTORFUELS TAX AND IT WOULD CUT SPENDING BY 255 BILLION INCLUDING A 56 BILLION WHACK AT MEDICARE WHICH PROVIDES HEALTH COVERAGE FOR THE ELDERLY AND DISABLED THE PACKAGE ITSELF IS UNAPPETIZING CONCLUDES TIM H BLESSING A PRESIDENTIAL SCHOLAR AT ALVERNIA COLLEGE IN READING PA STILL THIS ISN'T THE FIRST AND WON'T BE THE LAST BUDGETCUTTING LEGISLATION IN THESE FRUGAL TIMES DEFICITREDUCTION IS POPULAR AT LEAST IN THEORY ACADEMICS AND LAWMAKERS BELIEVE THAT OTHER FACTORS ARE MAKING WINNING THE VOTE SO FORMIDABLE ONE OF THEM IS MR CLINTON'S STYLE ALTHOUGH HE IS GOOD AT FRIENDLY PERSUASION HE ISN'T KNOWN FOR HIS TOUGHNESS MANY MEMBERS OF CONGRESS SEE HIM AS SOMEONE THEY CAN PUSH AROUND AND MUSCLE INTO COMPROMISE MR BLESSING WHO IS DIRECTOR OF A PRESIDENTIALPERFORMANCE STUDY THINKS MR CLINTON IS TOO ACCOMMODATING HE LIKES TO BE LIKED TOO MUCH HE SAYS TO BE A LEADER YOU NEED A PERSON WHO IS WILLING TO STAND UP AND SNARL BACK AND THAT MR CLINTON DOESN'T DO HE'S STILL BEING NICE TO PEOPLE WHO ARE KICKING HIM IN THE SHINS AGREES REP PATRICIA SCHROEDER D COLO ONE OF MANY HOUSE LIBERALS EXASPERATED BY THE RECALCITRANCE OF CONSERVATIVE DEMOCRATS IN THE SENATE MR CLINTON IS PARTICULARLY VULNERABLE TO PRESSURE FROM INDIVIDUAL LAWMAKERS ON THIS BILL THE INITIAL MARGIN OF VICTORY IN THE HOUSE WAS JUST SIX VOTES AND THE MARGIN OF VICTORY IN THE SENATE WAS NONEXISTENT VICE PRESIDENT AL GORE BROKE A TIE THAT MEANS THE ADMINISTRATION MUST OFFSET THE LOSS OF ANY SENATOR WHO VOTED YES THE FIRST TIME BY CORRALLING ANOTHER SENATOR WHO PREVIOUSLY VOTED NO YET SOME LAWMAKERS GRUMBLE THAT MR CLINTON DIDN'T NAIL DOWN THE VOTE OF SEN RICHARD BRYAN D NEV EVEN THOUGH THE FINAL BILL INCLUDES A TAX BREAK FOR RESTAURANT OWNERS THAT WAS MEANT IN PART TO TEMPT THE NEVADA LAWMAKER MR BRYAN YESTERDAY SAID HE WASN'T CERTAIN HOW HE WILL VOTE LASTMINUTE CONCESSIONS THE PRESIDENT HAS ACCEPTED TO WIN OVER FINAL HOLDOUTSSUCH AS MAKING INCOMETAX INCREASES RETROACTIVE TO JAN 1 TO MAKE UP FOR REVENUE LOST WHEN CONGRESS CUT BACK HIS PROPOSED BOOST IN ENERGY TAXES THREATEN TO CAUSE MORE HEADACHES THEY'RE DOING A GOOD JOB OF LOSING ME COMPLAINED REP ROBERT TORRICELLI A NEW JERSEY DEMOCRAT CHANGES IN THE CONGRESS ITSELF HAVE ADDED TO THE BILL'S TRAVAILS PRESIDENTS ONCE COULD RELY ON A FEW BARONS TO DELIVER ENOUGH VOTES TO PASS THEIR POLICIES BUT THAT'S NO LONGER TRUE THERE ARE 110 NEW MEMBERS OF THE HOUSE WHO FEEL CLOSER TO THEIR CONSTITUENCIES THAN TO THE PRESIDENT SAYS JAMES THURBER AN EXPERT ON CONGRESS AT AMERICAN UNIVERSITY IN FACT WITH HIS LOW STANDING IN THE POLLS THEY FEEL THEY HAVE TO RUN AWAY FROM THE PRESIDENT TO GET REELECTED IN ADDITION POLITICAL PARTIES HAVE BECOME SO WEAK THAT DISPLAYS OF INDEPENDENCE ROSS PEROT IS ONLY THE MOST DRAMATIC RECENT EXAMPLE STAND TO BOOST INDIVIDUAL LAWMAKERS' STATURE AND MR CLINTON STARTED HIS DEFICITREDUCTION EFFORT WITH A POLITICAL DEFICIT OF HIS OWN HE WAS ELECTED WITH JUST 43 OF THE VOTE RESPECT FOR AUTHORITY OF ALL KINDS AND ESPECIALLY FOR PUBLIC INSTITUTIONS HAS ERODED SHARPLY SINCE LYNDON JOHNSON WORKED HIS WILL AT THE CAPITOL A GENERATION AGO AND THE GOVERNMENT GOODIES THAT PRESIDENT JOHNSON DISPENSED OR WITHHELD TO MAINTAIN DISCIPLINE ALSO HAVE DWINDLED AS THE BUDGET DEFICIT HAS GROWN THOSE DAYS ARE GONE SAYS SEN DAVID PRYOR D ARK A MEMBER OF THE DEMOCRATIC LEADERSHIP AND A CLOSE CLINTON ALLY THE SYSTEM IS DIFFERENT WE ARE DIFFERENT COMMUNICATIONS ARE DIFFERENT IN AN AGE OF RUSH LIMBAUGH CSPAN AND PRESSURE GROUPS OF ALL KINDS MR PRYOR ADDS THE PUBLIC IS MORE INVOLVED MR CLINTON'S CURRENT STANDING IN THE POLLS HE GETS LOWER THAN 50 APPROVAL IN MOST OF THEM DOESN'T HELP IF HE CAME IN AT 58 OR 60 PEOPLE WOULD TAKE HIM A LITTLE MORE SERIOUSLY MR THURBER SAYS THE DEMOCRATS SAY THE HOUSESENATE CONFERENCE COMPROMISE WOULD REDUCE THE DEFICIT BY 496 BILLION OVER THE NEXT FIVE YEARS HERE ARE FIVEYEAR ESTIMATES OF THE MAJOR COMPONENTS IN BILLIONS OF DOLLARS NEGATIVE FIGURES REDUCE THE DEFICIT POSITIVE FIGURES INCREASE IT 9308040039 930804 WHAT'S NEWS BUSINESS AND FINANCE KMART PUT ITS PAY LESS DRUGSTORES UNIT ON THE AUCTION BLOCK AND HOPES TO SELL IT FOR UP TO 1 BILLION ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION MERRILL LYNCH IS CONDUCTING THE AUCTION INVOLVING A HANDFUL OF BIDDERS KMART WAS SAID TO BE SEEKING BUYERS FOR THE UNIT FROM BOTH THE RETAIL INDUSTRY AND ON WALL STREET INCLUDING LEVERAGED BUYOUT SPECIALISTS CLINTON ASSERTED IN A TELEVISED SPEECH THAT PASSAGE OF HIS DEFICITREDUCTION BILL IS ESSENTIAL TO THE ECONOMY BUT HE STILL HAS WORK TO DO TO CLOSE THE DEAL WITH THE HOUSE AND SENATE US AIRLINES ARE SUSPENDING SERVICE ON SOME TRANSATLANTIC ROUTES AFTER SPENDING BILLIONS OF DOLLARS FOR THE RIGHT TO FLY TO EUROPE THE CUTBACKS SIGNAL THAT THE MARKET PROBABLY WON'T TURN AROUND ANY TIME SOON AMR'S AMERICAN AIR SAID IT WILL SUSPEND SERVICE ON THREE EUROPEAN ROUTES THIS FALL EUROPEAN CENTRAL BANKS SEEMED TO BE REGAINING THE UPPER HAND OVER CURRENCY TRADERS FOR THE FIRST TIME IN WEEKS AS CALM SETTLED OVER EUROPEAN CURRENCY MARKETS EUROPE'S WEAKER CURRENCIES REGAINED LOST GROUND ON THE MARK AND GERMANY'S CENTRAL BANK CUT A KEY INTEREST RATE A BIT THE INDEX OF LEADING INDICATORS EDGED UP 01 IN JUNE AFTER FALLING 04 IN MAY SUGGESTING THE FUTURE OF THE RECOVERY WILL REMAIN SLUGGISH TREASURY BOND PRICES ROSE SHARPLY ON EXPECTATIONS THAT CLINTON'S BUDGET BILL WILL PASS THE BENCHMARK 30YEAR TREASURY BOND ROSE OVER 1/2 POINT ITS YIELD DROPPED TO 651 THE LOWEST SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE 30YEAR BOND IN 1977 POLYGRAM ACQUIRED MUSIC POWERHOUSE MOTOWN FOR 301 MILLION SIGNIFICANTLY BOOSTING THE US PRESENCE OF THE LONDON RECORD AND FILM COMPANY ZALE'S CHAIRMAN QUIT ABRUPTLY DAYS AFTER THE JEWELRY COMPANY EMERGED FROM CHAPTER 11 ZALE PLANS TO FIND A SUCCESSOR NOT ASSOCIATED WITH EITHER OF ITS TWO MAIN UNITS BUSINESS FAILURES FELL 99 IN THE FIRST HALF OF 1993 FAILURES IN FINANCE INSURANCE AND REALESTATE BUSINESSES FELL 178 THE LARGEST DECLINE MAXXAM POSTED A 158 MILLION SECONDQUARTER LOSS AMID A WORLD ALUMINUM GLUT THAT HAS DEPRESSED PRICES ITALY'S MONTEDISON MAY SEIZE 3123 MILLION OF ASSETS FROM ITS FORMER TOP MANAGERS A STATE JUDGE RULED APPLE COMPUTER LAUNCHED ITS FIFTH ROUND OF PRICE CUTS SINCE APRIL CUTTING PRICES ON THREE HIGHERPRICED PERSONAL COMPUTERS BY AS MUCH AS ONETHIRD FOOD LION CAN TURN ITS ATTENTION TO RESTARTING ITS EXPANSION PLANS AFTER SETTLING A 162 MILLION OVERTIME VIOLATIONS SUIT WITH THE GOVERNMENT BONDS LEHMAN BROTHERS TREASURY INDEX 539194 UP 1988 COMMODITIES OIL 1785 A BARREL OFF 12 CENTS DOW JONES FUTURES INDEX 13232 UP 040 SPOT INDEX 12660 UP 014 DOLLAR 10444 YEN UP 003 17070 MARKS OFF 00023 9308040038 930804 BUSINESS BRIEFS PNC BANK CORP SCRAPPED ITS PLANS TO SELL THE WESTERN OFFICES OF SEARS ROEBUCK & CO'S MORTGAGE BANKING GROUP AFTER A FAILED ATTEMPT TO REACH AN AGREEMENT WITH A GROUP OF SEARS MANAGERS WALSH CONSTRUCTION CO A UNIT OF GUY F ATKINSON CO OF CALIFORNIA RECEIVED APPROVAL TO RESUME DESIGN AND CONSTRUCTION WORK ON A 975 MILLION COGENERATION PLANT IN BILLINGS MONT CRYOGENIC ASSOCIATES INC A UNIT OF MINNESOTA VALLEY ENGINEERING INC OF BLOOMINGTON MINN COMPLETED ITS ACQUISITION OF MOUNTAIN MEDICAL EQUIPMENT INC OF DENVER CMS ENERGY CORP'S INDEPENDENT POWER UNIT ACQUIRED A 50 INTEREST IN LUZON POWER ASSOCIATES TERMS WEREN'T DISCLOSED GE CAPITAL A UNIT OF GENERAL ELECTRIC CO SIGNED A DEFINITIVE AGREEMENT TO PURCHASE SHEARSON LEHMAN HUTTON MORTGAGE CORP A SUBSIDIARY OF LEHMAN BROTHERS HOLDINGS INC FOR ABOUT 70 MILLION MCGRAWHILL INC SAID IT PURCHASED UNION BROKERAGE CO A CUSTOMS BROKER BASED IN RANIER MINN THAT SERVES COMPANIES ALONG THE USCANADIAN BORDER FOR AN UNDISCLOSED AMOUNT 9308040037 930804 AVERAGE YIELDS ON CDS SHOWED LITTLE CHANGE IN THE LATEST WEEK NEW YORK YIELDS ON MOST CERTIFI CATES OF DEPOSIT AT MAJOR BANKS AND BROKER AGE FIRMS WERE LITTLE CHANGED IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALL DENOMINATION SAVINGS CDS REMAINED AT 273 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS INCHED UP TO 476 FROM 475 THE WILMINGTON DEL INFORMA TION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKER SOLD CDS EASED TO 312 FROM 314 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD ROSE TO 471 FROM 461 THE SURVEY SAID ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 OR MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE SLID TO 279 FROM 282 ON FIVEYEAR JUMBOS THE AVERAGE CREPT UP TO 482 FROM 481 ACCORDING TO BANX QUOTE 9308040036 930804 BUSINESS BRIEF TEXAS UTILITIES CO NUCLEAR REACTOR STARTS UP TRIGGERING A RATE INCREASE TEXAS UTILITIES CO SAID UNIT 2 OF THE COMANCHE PEAK NUCLEAR POWER PLANT NEAR FORT WORTH HAS BEGUN COMMERCIAL OPERATION TRIGGERING A RATE INCREASE TO RAISE ANNUAL REVENUE BY 760 MILLION OR 15 LAST MONTH THE DALLAS ELECTRIC UTILITY HOLDING COMPANY NOTIFIED THE PUBLIC UTILITY COMMISSION OF TEXAS THAT IT WOULD IMPOSE THE INCREASE WHEN UNIT 2 REACHED COMMERCIAL OPERATION THE INCREASE WHICH WENT INTO EFFECT YESTERDAY WILL ADD 11 A MONTH TO THE AVERAGE RESIDENTIAL BILL THE COMPANY'S PRINCIPAL UNIT TEXAS UTILITIES ELECTRIC CO SERVES 22 MILLION BUSINESS AND RESIDENTIAL CUSTOMERS TEXAS UTILITIES PROPOSED THE 15 INCREASE ON JAN 22 STATE REGULATIONS ALLOW A UTILITY TO PUT PROPOSED RATES INTO EFFECT UNDER BOND IF REGULATORS DO NOT MAKE A DECISION ON THE PROPOSAL WITHIN 185 DAYS OF FILING THE BOND ASSURES A REFUND TO CONSUMERS WITH INTEREST IF THE COMMISSION APPROVES A LOWER AMOUNT THAN THE UTILITY REQUESTED 9308040035 930804 MANAGING YOUR CAREER BY JOANN S LUBLIN ADVANCEMENT OPPORTUNITIES ARE SHRINKING ALONG WITH CORPORATE PAYROLLS SO A LATERAL MOVE MAY BE THE CLOSEST THING YOU'LL GET TO A PROMOTION ANYTIME SOON MANY BIG COMPANIES INCLUDING AMERICAN GREETINGS CORNING AND EASTMAN KODAK HAVE BEEN ENCOURAGING LATERAL MOVES BECAUSE THEY SEE RELATIVELY FEW PROMOTIONS AHEAD SUCH AN OFFER MIGHT SEEM LIKE A DEFEAT THE WRONG HORIZONTAL MOVE CAN INDEED SMACK OF A DEAD END AND POISON A RESUME RECRUITERS SAY BUT BEFORE YOU DECIDE TO LOOK ELSEWHERE THE LATERAL OFFER MIGHT BE WORTH A SECOND LOOK TAKING A STEP SIDEWAYS CAN MAKE SENSE IF YOU WILL GAIN NEW SKILLS OR LAND IN A CORE OPERATION BECOMING MORE MARKETABLE BOTH INSIDE AND OUTSIDE YOUR COMPANY THE ISSUE IS AM I GOING TO LEARN SOMETHING AND AM I GOING TO GET SOME TICKETS PUNCHED FOR THIS SAYS HOLLAND EARLE HUMANRESOURCES VICE PRESIDENT FOR A DIVISION OF ADP INC IN ATLANTA MOREOVER AN OFFER OF A LATERAL MOVE MAY PUT YOU IN A STRONGER NEGOTIATING POSITION THAN YOU THINK THOUGH USUALLY NOT STRONG ENOUGH TO ASK FOR MORE MONEY THAT'S BECAUSE THE COMPANY WANTS YOU TO MAKE A POTENTIALLY RISKY SHIFT AND YOU PROBABLY DON'T CAREER SPECIALISTS OFFER SEVERAL STRATEGIES TO HELP YOU DISTINGUISH BETWEEN A GOOD AND BAD LATERAL MOVE AND TO USE YOUR LEVERAGE TO INCREASE THE CHANCES THAT YOUR MOVE WILL TURN OUT WELL AMONG THEM SCOUT THE TERRITORY THOROUGHLY TAKE A WEEK OR TWO TO DECIDE GET A SENSE OF AN ASSIGNMENT'S MERITS THE COLLEAGUES INVOLVED AND YOUR PREDECESSORS' TRACK RECORDS AS WELL AS WHERE THEY MOVED LOOK AT HOW HOLDERS OF THIS POSITION HAVE FARED IN OTHER INDUSTRIES FIND OUT ABOUT YOUR BOSSTOBE TOO IS THIS PERSON SO CLOSE TO YOUR AGE AND EXPERIENCE THAT YOU WILL BE UNLIKELY TO SUCCEED HIM OR HER ANYTIME SOON IS THE NEW BOSS A SUPERSTAR WHOSE SHINE YOU CAN SHARE SUCH DIGGING ENABLED A BANK SALESWOMAN TO AVOID A POSSIBLE CAREER ROADBLOCK HER EMPLOYER OFFERED HER THREE DIFFERENT PERSONNEL POSITIONS AT HEADQUARTERS BUT SHE LEARNED THAT PRIOR HOLDERS OF THE JOBS HAD EITHER QUIT OR NEVER ADVANCED HIGHER SO SHE TALKED TO COLLEAGUES IN OTHER HEADQUARTERS UNITS AND UNCOVERED SEVERAL ADDITIONAL JOB POSSIBILITIES IN THE END SHE LANDED ONE OF THOSE SELLING BANKING SERVICES TO AFFLUENT INDIVIDUALS THOUGH THIS WAS ALSO A SIDEWAYS MOVE SHE IS NOW IN A GOOD POSITION FOR A FUTURE PROMOTION ASK WIDELY FOR SUPPORT A LATERAL MOVE MAY FLOP IF YOU LACK THE NEEDED EXPERTISE RESOURCES OR CORPORATE MENTOR IT DOESN'T HURT FOR EXAMPLE TO SEEK EXTRA TRAINING AFTER A REORGANIZATION AT A CHEMICAL COMPANY ONE MANAGEMENT INFORMATION SYSTEMS EXECUTIVE FEARED A LATERAL MOVE WOULD DERAIL HER SO SHE SOUGHT AND GOT A BUDGET BIG ENOUGH TO USE CUTTINGEDGE TECHNOLOGY IN HER NEW POSITION RATHER THAN JUST MAINTAIN THE STATUS QUO IF SHE HADN'T ASKED FOR THAT BUDGET SHE COULD HAVE BEEN PIGEONHOLED SAYS DAVID LYNN A REGIONAL VICE PRESIDENT FOR BLESSING/WHITE CONSULTANTS IN PRINCETON NJ IT ALSO HELPS IF YOU CAN GET TOP MANAGEMENT'S COMMITMENT THAT A LATERAL MOVE WILL BENEFIT YOUR CAREER A SALES EXECUTIVE AT A BIG MANUFACTURER BECAME ITS MEDIARELATIONS DIRECTOR AFTER THE CHIEF EXECUTIVE ASKED THE MANAGER TO MAKE THE HORIZONTAL TRANSFER THE CEO GAVE THE CLEAR IMPRESSION THAT IN THE LONG RUN THE MOVE WOULD BE A CAREER BOOSTER MINIMIZE YOUR RISKS ONE WAY IS TO NEGOTIATE PERFORMANCE REVIEWS EVERY SIX MONTHS RATHER THAN ONCE A YEAR CAREER COUNSELORS SAY THAT KEEPS YOU VISIBLE AND MAY HELP YOU GET OUT FASTER IF THINGS DON'T GO WELL SOME COUNSELORS ALSO ADVISE SEEKING A LIMITED DURATION FOR LATERAL MOVES IDEALLY NO MORE THAN TWO YEARS NOT EVERYONE HAS SUCH LEVERAGE OF COURSE WE ENCOURAGE PEOPLE NOT TO SET TIME LIMITS ON THEIR LATERAL TRANSFERS SAYS E MARIE MCKEE CORNING'S VICE PRESIDENT OF STRATEGIC STAFFING JANYCE FADDEN A HONEYWELL MANAGER REDUCED THE RISKS OF A HORIZONTAL MOVE IN 1991 BY WINNING PERMISSION TO WRITE THE JOB DESCRIPTION FOR A NEW ASSIGNMENT HONEYWELL SHIFTED HER FROM MARKETING DIRECTOR OF A BUSINESS UNIT TO ONE OF THREE MARKETING DIRECTORS AT A REORGANIZED DIVISION THE TRANSFER DIDN'T CHANGE HER PAY OR STATUS MS FADDEN SAYS SHE WORKED HARD TO DEFINE THE SCOPE OF THE JOB BY MAKING SURE HER DUTIES INCLUDED STRATEGIC PLANNING SHE FELT SHE NEEDED SUCH EXPERIENCE TO PREPARE MYSELF TO BE A VICE PRESIDENT SHE FINALLY WON A VICE PRESIDENCY AND A SIGNIFICANT PAY RAISE IN JANUARY BY QUITTING HONEYWELL TO BECOME VICE PRESIDENT OF MARKETING FOR A DIVISION OF GENERAL SIGNAL OFFICIALS AT HER NEW COMPANY SAID HER ABILITY TO MANAGE COMPLEXITYSKILLS ACQUIRED DURING THE LATERAL MOVEHELPED TO QUALIFY HER FOR THE VICE PRESIDENCY USING SIMILAR STRATEGIES YOU MAY DECIDE TO SPURN YOUR COMPANY'S PROPOSED LATERAL MOVE BUT YOU SHOULD HANDLE A REJECTION DELICATELY CAREER STRATEGISTS SAY A SENIOR NEW YORK BANKER TURNED DOWN A SIMILARLEVEL POSITION WITH A RISKY STARTUP OPERATION AT THE BANK HE THOUGHT IT WOULD BE A BAD CAREER MOVE BECAUSE HE BELIEVED THE WEST COAST STARTUP WOULDN'T SUCCEED SAYS KATE WENDLETON A NEW YORK EXECUTIVE COACH THE EXECUTIVE ALSO WAS CONCERNED BECAUSE HIS SUPERIORS REFUSED TO GUARANTEE HIM ANOTHER POSITION IF THE STARTUP FAILED YET HE COULDN'T SAY THE STARTUP WAS A BAD IDEA WITHOUT OFFENDING TOP MANAGEMENT MS WENDLETON ADDS INSTEAD HE SAID HIS FAMILY DIDN'T WANT TO RELOCATE TO THE WEST COAST 9308040034 930804 BUSINESS BRIEF GENERAL MOTORS CORP EDS DIVISION WINS CONTRACT FROM IOWA HEALTH INSURER ELECTRONIC DATA SYSTEMS CORP SAID IT RECEIVED A 10YEAR 200 MILLION INFORMATION SERVICES CONTRACT FROM A DES MOINES IOWA HEALTH INSURER EDS A GENERAL MOTORS CORP UNIT BASED IN DALLAS SAID IT WILL OVERSEE STRATEGIC TECHNOLOGY PLANNING AND CONSULTING FOR IASD HEALTH SERVICES THE PRIVATELY HELD CONCERN IS ONE OF THE LARGEST INSURERS IN IOWA AND SOUTH DAKOTA PROVIDING SERVICES AS BLUE CROSS AND BLUE SHIELD OF IOWA AND SOUTH DAKOTA BLUE CROSS EDS SAID ITS WORK UNDER THE CONTRACT WILL INCLUDE BEEFING UP IASD'S CUSTOMER SERVICE SYSTEM AND AUTOMATING OTHER WORK THAT HAD BEEN HANDLED MANUALLY 9308040033 930804 BUSINESS BRIEF MBIA INC BOOM IN MUNICIPAL BONDS BOOSTS 2NDPERIOD NET 33 MBIA INC SAID CONTINUED STRONG GROWTH IN THE MUNICIPAL BOND MARKET HELPED DRIVE ITS SECONDQUARTER EARNINGS 33 HIGHER FOR THE QUARTER MBIA THE PHILADELPHIABASED HOLDING COMPANY FOR MUNICIPAL BOND INVESTORS ASSURANCE CORP REPORTED NET INCOME OF 638 MILLION OR 150 A SHARE UP FROM 479 MILLION OR 118 A SHARE A YEAR EARLIER THE COMPANY WHICH SPECIALIZES IN MUNICIPAL BOND INSURANCE SAID IT EXPECTS FAVORABLE MARKET CONDITIONS IN THE MUNICIPAL BOND MARKET TO CONTINUE MBIA SAID IT INSURED 128 BILLION IN NEWISSUE MUNICIPAL BONDS IN THE SECOND QUARTER THIS YEAR COMPARED WITH 89 BILLION IN THE SECOND QUARTER OF 1992 9308040032 930804 BUSINESS BRIEF USTRAILS INC CAMPGROUND CONCERN AGREES TO BUY REST OF UNIT'S SHARES USTRAILS INC DALLAS SAID IT HAS REACHED AN AGREEMENT TO BUY THE 20 OF ITS THOUSAND TRAILS INC UNIT THAT IT DOESN'T ALREADY OWN FOR A TOTAL ESTIMATED AT 71 MILLION UNDER TERMS OF THE PROPOSED MERGER MINORITY SHAREHOLDERS OF THOUSAND TRAILS WILL RECEIVE 155 A SHARE IN LATE NATIONAL OVERTHECOUNTER TRADING YESTERDAY THOUSAND TRAILS WAS QUOTED AT 125 UP 125 CENTS THOUSAND TRAILS' BOARD HAS UNANIMOUSLY APPROVED THE DEAL AND A SPECIAL COMMITTEE OF INDEPENDENT DIRECTORS HAS DETERMINED THAT THE TERMS OF THE PROPOSED MERGER ARE FAIR TO THE COMPANY'S MINORITY SHAREHOLDERS A SPECIAL THOUSAND TRAILS SHAREHOLDERS MEETING TO VOTE ON THE PROPOSAL HAS BEEN SET FOR NOV 30 9308040031 930804 WHO'S NEWS CLINTON PICKS 2 NOMINEES FOR HEALTH AGENCY POSTS WASHINGTON PRESIDENT CLINTON ANNOUNCED HIS CHOICES FOR TWO TOP ADMINISTRATION HEALTH AND HUMAN SERVICES POSTS MR CLINTON NAMED HAROLD VARMUS WINNER OF THE 1989 NOBEL PRIZE IN MEDICINE TO BE DIRECTOR OF THE NATIONAL INSTITUTES OF HEALTH AND SHIRLEY CHATER PRESIDENT OF TEXAS WOMAN'S UNIVERSITY TO BE COMMISSIONER OF SOCIAL SECURITY BOTH NOMINATIONS WERE EXPECTED THE CANDIDATES MUST NOW WIN CONFIRMATION FROM THE SENATE BEFORE ASSUMING THEIR POSTS THE WHITE HOUSE WENT AHEAD WITH MS CHATER'S NOMINATION DESPITE REPORTS THAT SHE FAILED TO PAY SOCIAL SECURITY TAXES ON A BABYSITTER SHE EMPLOYED IN THE EARLY 1970S SHE HAS SINCE PAID THE BACK TAXES ADMINISTRATION OFFICIALS SAID DR VARMUS IS A MICROBIOLOGIST AT THE UNIVERSITY OF CALIFORNIA AT SAN FRANCISCO HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA YESTERDAY CALLED HIM AN ABSOLUTELY FIRSTRATE SCIENTIST AND WE'RE AT A CRITICAL TIME IN THE HISTORY OF AMERICAN SCIENCE THE GREAT RESEARCH UNIVERSITIES ARE BEGINNING TO DECAY AND THEY NEED A STRONG LEADER IN WASHINGTON 9308040030 930804 INTERNATIONAL BRIEF ROUSSEL UCLAF SA COMPARABLE FIRSTHALF PROFIT ROSE 39 COST OF DEBT FELL FRENCH PHARMACEUTICAL CONCERN ROUSSEL UCLAF SA SAID ITS FIRSTHALF NET INCOME MORE THAN DOUBLED TO 470 MILLION FRANCS 785 MILLION FROM 188 MILLION FRANCS A YEAR AGO THE COMPANY SAID THE NET FIGURES WEREN'T COMPARABLE DUE TO THE SALE OF ONE UNIT AND THE ACQUISITION OF ANOTHER ON A COMPARABLE BASIS PROFIT SURGED 39 TO 298 MILLION FRANCS ON A COMPARABLE BASIS ROUSSEL UCLAF SAID THE INCREASE IN PROFIT PARTLY REFLECTED A DECLINE IN FINANCING COSTS THE COMPANY'S DEBT DURING THE FIRST HALF DECLINED BY AROUND ONE BILLION FRANCS FROM THE YEAREARLIER PERIOD IT SAID REVENUE FOR THE FIRST HALF ROSE 63 TO 780 BILLION FRANCS FOR THE FULL YEAR ROUSSEL UCLAF PROJECTS A PROFIT INCREASE OF 15 TO 20 9308040029 930804 GINSBURG'S NOMINATION CLEARS SENATE IN 963 VOTE WASHINGTON THE SENATE EASILY CONFIRMED THE NOMINATION OF APPEALS COURT JUDGE RUTH BADER GINSBURG TO THE SUPREME COURT THE WHITE HOUSE SAID JUDGE GINSBURG WILL BE SWORN IN TUESDAY ALLOWING HER TO BEGIN PREPARATIONS FOR THE HIGH COURT'S 19931994 TERM WHICH BEGINS OCT 4 SHE IS ONLY THE SECOND WOMAN JUSTICE AND THE FIRST JUSTICE IN 26 YEARS NOMINATED BY A DEMOCRATIC PRESIDENT JUDGE GINSBURG SAILED THROUGH HER CONFIRMATION HEARINGS ALTHOUGH SOME REPUBLICANS EXPRESSED HESITATION ABOUT WHAT THEY PERCEIVE AS HER LIBERAL VIEWS ON SUCH ISSUES AS ABORTION RIGHTS AND SEX DISCRIMINATION STILL REPUBLICAN MEMBERS OF THE SENATE JUDICIARY COMMITTEE SAID THE NOMINEE'S SELFRESTRAINT ON THE FEDERAL APPEALS COURT HERE AND HER LEGAL SKILL QUALIFIED HER FOR THE HIGH COURT THE VOTE IN THE SENATE WAS 963 WITH THE OPPOSITION COMING FROM REPUBLICAN SENS JESSE HELMS OF NORTH CAROLINA DON NICKLES OF OKLAHOMA AND BOB SMITH OF NEW HAMPSHIRE MEANWHILE THE JUDICIARY COMMITTEE VOTED UNANIMOUSLY TO CONFIRM US DISTRICT JUDGE LOUIS FREEH'S NOMINATION AS DIRECTOR OF THE FEDERAL BUREAU OF INVESTIGATION A VOTE ON THE SENATE FLOOR IS LIKELY THIS WEEK 9308040028 930804 HEARD ON THE STREET SALOMON WRITES EPIC ON HOME DEPOT'S VIRTUES MANY WOULD PREFER AN ODE TO OVEROWNED STOCK BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL IN WALL STREET PARLANCE HOME DEPOT STOCK IS OVEROWNED THAT IS IT'S ALREADY IN SO MANY INVESTORS' PORTFOLIOS THAT THERE IS LIKELY NO WAY FOR THE STOCK TO GO BUT DOWN AT LEAST THAT'S WHAT MOST VALUEORIENTED INVESTORS THINK BUT SALOMON BROTHERS IN A MOVE THAT WILL PROVE EITHER BOLD OR FOOLISH IS TAKING THE OPPOSITE VIEW JEFFREY FEINER AND A TEAM OF FOUR OTHER SALOMON ANALYSTS HAVE PUBLISHED ONE OF THE MOST DETAILED RESEARCH REPORTS IN THE SECURITIES FIRM'S HISTORY IN WHICH THEY DECLARE THAT HOME DEPOT SHOULD BE OWNED BY EVEN MORE PEOPLE THE 84PAGE REPORT'S TITLE THE HOME DEPOT DICTIONARY FROM A TO Z WHY PORTFOLIO MANAGERS SHOULD OWN THIS STOCK FOR THE NEXT DECADE INCLUDED ARE 89 CHARTS AN ESSAY ON HOMEOWNERS IN THE 1990S AND A CENTERFOLD MAP OF HOME DEPOT'S 227 US STORES IS SALOMON GOING OVERBOARD ODDS ARE IT IS AFTER ALL SHARES IN THE ATLANTABASED HOME IMPROVEMENT CHAIN DESPITE A 9 YEARTODATE DECLINE ARE STILL TRADING AT AN EXPENSIVE 53 TIMES REPORTED EARNINGS THAT IS WELL ABOVE THE VALUATIONS OF COMPETITORS SUCH AS LOWE'S HECHINGER AND GROSSMAN'S AND ALTHOUGH EVERYONE AGREES THAT HOME DEPOT IS A FINE COMPANY CAN INVESTORS REALLY COUNT ON AVERAGE 30 ANNUAL EARNINGS GAINS THROUGH THE YEAR 2002 AS SALOMON PREDICTS NO PROBLEM INSIST THE SALOMON ANALYSTS THE STOCK'S HIGH PREMIUM IS ENTIRELY WARRANTED THE REPORT DECLARES BECAUSE OF HOME DEPOT'S ENVIABLE FINANCIAL PERFORMANCE INCLUDING 29 CONSECUTIVE QUARTERS OF RECORD EARNINGS AND SALES THE STOCK SHOULD BE INCLUDED IN MOST GROWTHORIENTED PORTFOLIOS THE REPORT ADVISES AMONG OTHER THINGS SALOMON ARGUES THAT HOME DEPOT HAS CONSIDERABLE EXPANSION POTENTIAL FOR ITS DOITYOURSELF WAREHOUSES INCLUDING ITS FIRST STORES IN THE COMPETITIVE MIDWEST SALOMON EXPECTS A DOUBLING OF OUTLETS TO MORE THAN 500 BY YEAREND 1996 MUCH OF THE NATION STILL NEEDS TO BE FILLED IN WITH HOME DEPOT STORES THE REPORT SAYS STILL THIS GLOWING REPORT COMES AS OTHER TRADERS AND ANALYSTS ARE PULLING BACK FROM THIS MUCHLOVED STOCK LAST MONTH MONTGOMERY SECURITIES ANALYST BO CHEADLE PULLED A BUY RECOMMENDATION THAT HE'D HAD ON RECORD FOR NINE YEARS MOVING HOME DEPOT TO HOLD THOUGH HOME DEPOT IS THE MOST POWERFUL RETAILER IN THE WORLD THE STOCK'S PRICE DOESN'T REFLECT THE INCREASED COMPETITION FROM LOWE'S AND OTHERS MR CHEADLE ARGUES THE INVESTMENT COMMUNITY CONTINUES TO VALUE HOME DEPOT AS IF THERE'S NO COMPETITION AT ALL OUT THERE MR CHEADLE SAYS THAT COULD BE CHANGING THE 507 MILLION DREYFUS GROWTH OPPORTUNITY FUND SOLD 40 OF ITS 308000 HOME DEPOT SHARES IN THE FIRST QUARTER IT WAS A VALUATION CALL SAYS DREYFUS ANALYST ELAINE REES WALL STREET'S SHORTSELLERS TAKING IT A STEP FURTHER ARE PREDICTING A HOME DEPOT TUMBLE THE STOCK HAS THE FOURTHHIGHEST LEVEL OF SHORT INTEREST THE AMOUNT OF SHARES BORROWED AND SOLD BY INVESTORS LOOKING FOR A DECLINE ON THE NEW YORK STOCK EXCHANGE 128 MILLION SHARES AS OF MIDJULY THE ONLY BIGGER POSITIONS ARE CHRYSLER WALT DISNEY AND WALMART STORES NOBODY ARGUES THAT IT'S NOT A GREAT COMPANY SAYS SHORTSELLER MICHAEL MURPHY WHO EDITS OVERPRICED STOCK SERVICE NEWSLETTER BUT IT'S THE MICROSOFT PROBLEM HOW DO YOU KEEP UP THE RATE OF GROWTH WHEN YOU'RE SO BIG AND KEEP THE MANAGEMENT SPAN OF CONTROL ONE OF HOME DEPOT'S STRENGTHS IS THE ENERGETIC HANDSON MANAGEMENT OF CHAIRMAN BERNARD MARCUS AND PRESIDENT ARTHUR BLANK WHO INSIST THEY CAN HANDLE THEIR EXPANSION INTELLIGENTLY MR MURPHY SAYS HE'S TROUBLED THAT HOME DEPOT IS EXPANDING IN WHAT HE CALLS ODD PLACES NEAR COMPETITORS NOW RATHER THAN CONCENTRATING ON UNTAPPED AREAS AS IT USED TO SALOMON WHICH HAS BEEN TRYING TO REBUILD ITS RESEARCH DEPARTMENT AFTER SCORES OF DEFECTIONS AMID THE 1991 TREASURYAUCTION SCANDAL IS THRILLED THAT ITS REPORT IS GETTING ATTENTION THERE HAS BEEN A LOT OF REQUESTS FOR COPIES FROM INSTITUTIONAL INVESTORS SAYS ONE SALOMON ANALYST IN THE SMALL PRINT OF ITS REPORT SALOMON DISCLOSES THAT IT HELD BOTH A LONG AND A SHORT POSITION IN HOME DEPOT SECURITIES AS OF JULY 15 BUT IT DOESN'T SAY HOW MUCH REFERRING TO THE SIZE AND POPULARITY OF THE HOME DEPOT REPORT MR MURPHY CRACKS THAT JUST ICES IT TO GET THIS MUCH ATTENTION IS NOT A GOOD SIGN THERE'S AN OLD SAYING HE ADDS ABOUT THE RATE OF RETURN FOR A STOCK BEING INVERSE TO THE THICKNESS OF THE RESEARCH PILE 9308040027 930804 FORECAST EXPECTED TO SHOW SLOWING ECONOMIC GROWTH WASHINGTON THE CLINTON ADMINISTRATION'S NEW ECONOMIC FORECAST TO BE RELEASED THIS MONTH SHOWS THE ECONOMY GROWING ABOUT 21 THIS YEAR A FULL PERCENTAGE POINT BELOW THE WHITE HOUSE'S FEBRUARY FORECAST THE DOWNWARD REVISION REFLECTS THE DISAPPOINTING PERFORMANCE OF THE ECONOMY IN THE FIRST HALF PRESIDENT CLINTON'S ECONOMIC ADVISERS EXPECT THE ECONOMY TO GROW AT ABOUT A 3 ANNUAL RATE IN THE SECOND HALF AS DOES FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN THE ECONOMY GREW AT A SLUGGISH 12 ANNUAL RATE IN THE FIRST HALF ACCORDING TO THE LATEST GOVERNMENT ESTIMATES BASED ON THE REVISED FORECAST THE ADMINISTRATION WILL PUBLISH UPDATED PROJECTIONS FOR THE FEDERAL DEFICIT THE PROJECTIONS WILL INCORPORATE THE DEFICITREDUCTION BILL PROVIDED IT IS PASSED BY CONGRESS IN THE NEW FIGURES THE DEFICITENLARGING IMPACT OF SLOWER THAN ANTICIPATED GROWTH IS LIKELY TO BE OFFSET BY UNEXPECTEDLY LOW INTEREST RATES INTEREST RATES HAVE FALLEN FAR FASTER THAN THE WHITE HOUSE EXPECTED IN FEBRUARY THE UPDATED FORECAST WILL SHOW SHORTTERM INTEREST RATES RISING GRADUALLY FROM CURRENT LOW LEVELS AS THE ECONOMY STRENGTHENS ADMINISTRATION ECONOMISTS ANTICIPATE THAT SHORTTERM RATES WILL RISE ABOUT ONEHALF OF A PERCENTAGE POINT OVER THE NEXT YEAR OR SO THE WHITE HOUSE EXPECTS LONGTERM INTEREST RATES TO REMAIN STEADY AT CURRENT RATES THE LOWEST IN MORE THAN TWO DECADES 9308040026 930804 BUSINESS BRIEF STANDARD COMMERCIAL CORP NET LOSS OF 199 MILLION EXPECTED IN FISCAL 1ST PERIOD STANDARD COMMERCIAL CORP SAID IT EXPECTS TO REPORT A NET LOSS OF 199 MILLION FOR ITS FISCAL FIRST QUARTER AS A RESULT OF INVENTORY DISPOSAL AND RESTRUCTURING COSTS THE COMPANY IN WILSON NC A LEAFTOBACCO DEALER AND WOOL TRADER SAID IT WILL RECORD A CHARGE OF 18 MILLION FOR THE QUARTER ENDED JUNE 30 IN THE YEAREARLIER QUARTER STANDARD COMMERCIAL REPORTED EARNINGS OF 53 MILLION OR 64 CENTS A SHARE ON REVENUE OF 2808 MILLION STANDARD COMMERCIAL SAID IT HAD ANTICIPATED DIFFICULT TRADING CONDITIONS FOR ITS TOBACCO BUSINESS BECAUSE OF WORLDWIDE SURPLUSES CREATED BY LARGE CROPS IN BRAZIL ZIMBABWE AND OTHER COUNTRIES POSSIBLE IMPORT RESTRICTIONS AND HIGHER EXCISE TAXES IN THE US ACCORDING TO THE COMPANY HAVE ONLY SERVED TO EXACERBATE UNCERTAINTIES IN THE INDUSTRY THE COMPANY SAID IT IS MOVING TO STRENGTHEN ITS US TOBACCO OPERATIONS BY CONSOLIDATING SOME LEAFBUYING AND PROCESSING OPERATIONS 9308040025 930804 BUSINESS BRIEF KEMPER CORP TWO UNITS ARE EXCHANGED FOR LUMBERMENS HOLDING KEMPER CORP SAID IT COMPLETED A SWAP OF ITS REINSURANCE AND RISKMANAGEMENT UNITS FOR A 35 EQUITY STAKE IN ITSELF HELD BY LUMBERMENS MUTUAL CASUALTY CO THE INSURER SAID IT RECEIVED 174 MILLION SHARES OF ITS STOCK IN RETURN LUMBERMENS RECEIVED KEMPER REINSURANCE CO AND NATIONAL LOSS CONTROL SERVICES CORP IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE KEMPER CLOSED AT 35125 UP 125 CENTS KEMPER SAID THE MOVE REDUCES COMMON STOCK OUTSTANDING TO 319 MILLION SHARES FROM 493 MILLION SHARES AT THE END OF 1992 LUMBERMENS KEMPER'S FORMER PARENT NOW HOLDS LESS THAN A 4 STAKE BOTH KEMPER AND LUMBERMENS ARE BASED IN LONG GROVE ILL SEPARATELY KEMPER REPORTED A SECONDQUARTER LOSS OF 266 MILLION OR 63 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 107 MILLION OR 22 CENTS A SHARE THE LOSS WAS ATTRIBUTED TO CHARGES OF 687 MILLION RELATED TO INCREASES IN PROVISIONS FOR REAL ESTATE LOSSES AND LEGAL RESERVES 9308040024 930804 MARKETING & MEDIA STAR TV CHIEF STEPS DOWN AFTER NEWS CORP TAKEOVER HONG KONG IN THE WAKE OF A TAKEOVER BY NEWS CORP THE CHIEF EXECUTIVE OFFICER OF STAR TV RESIGNED AFTER LESS THAN SIX MONTHS IN THAT POST INDUSTRY EXECUTIVES SAID LAST WEEK NEWS CORP BOUGHT 636 OF THE SATELLITE BROADCASTER WHICH SERVES THE ENTIRE ASIAN REGION FOR 525 MILLION IN CASH AND STOCK FROM HUTCHISON WHAMPOA LTD AND THE FAMILY OF LI KASHING AT THE TIME OF THE PURCHASE NEWS CORP EXECUTIVES SAID THEY WOULD LIKE THE EXECUTIVE JULIAN MOUNTER TO STAY HOWEVER STAR'S CHIEF BALKED AT THE PROSPECT OF NOT REPORTING DIRECTLY TO RUPERT MURDOCH NEWS CORP'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER PEOPLE CLOSE TO MR MOUNTER SAID BOTH MR MOUNTER AND A STAR SPOKESMAN DECLINED TO COMMENT IT IS LIKELY THAT STAR'S NEW CHIEF EXECUTIVE WILL REPORT TO EITHER SAM CHISHOLM CHIEF EXECUTIVE OF NEWS CORP'S UKBASED SATELLITE BROADCASTER BRITISH SKY BROADCASTING OR CHASE CAREY CHIEF OPERATING OFFICER OF NEWS CORP'S FOX INC FILM AND TELEVISION UNIT MR MOUNTER'S DEPARTURE IS EXPECTED TO BE FORMALLY ANNOUNCED THIS WEEK ALTHOUGH THERE ARE NO OBVIOUS SUCCESSORS IT IS EXPECTED THAT MR MURDOCH WILL CHOOSE SOMEONE FROM EITHER BRITISH SKY BROADCASTING OR FOX TO RUN STAR SAID A PERSON CLOSE TO NEWS CORP 9308040023 930804 BUSINESS BRIEF FORD MOTOR CO JURY AWARDS JAGUAR UNIT 3 MILLION IN FRAUD DAMAGES A FEDERAL JURY IN NEW JERSEY AWARDED MORE THAN 3 MILLION IN DAMAGES TO JAGUAR CARS INC WHICH CHARGED THAT THE OWNERS OF A DEFUNCT DEALERSHIP HAD SUBMITTED THOUSANDS OF FALSE WARRANTY CLAIMS THEODOR J FORHECZ SR THE PRESIDENT OF ROYAL OAKS MOTOR CAR CO AND HIS SON AND VICE PRESIDENT MARK M FORHECZ DEFRAUDED JAGUAR'S NORTH AMERICAN SALES ARM AND VIOLATED THE RACKETEER INFLUENCE AND CORRUPT ORGANIZATIONS STATUTE THE JURY IN US DISTRICT COURT IN TRENTON NJ FOUND SON THEODOR J FORHECZ JR WHO HELPED MANAGE THE DEALERSHIP WAS FOUND GUILTY OF UNJUST ENRICHMENT JAGUAR A UNIT OF DEARBORN MICHBASED FORD MOTOR CO FILED SUIT ACCUSING THE THREE OF BILKING JAGUAR OUT OF BETWEEN 15 MILLION AND 3 MILLION IN FRAUDULENT WARRANTY CLAIMS FROM 198991 THE FORHECZS OWNED A DEALERSHIP IN OCEAN TOWNSHIP NJ THAT IS CLOSED AND IS IN BANKRUPTCYLAW PROCEEDINGS ALL THREE FORHECZS MAINTAIN THEY DID NOT TAKE PART IN THE FRAUDULENT ACTIVITY AND WOULD NOT HAVE CONDONED IT HAD THEY KNOWN ABOUT IT SAID STUART POBERESKIN AN ATTORNEY REPRESENTING MARK FORHECZ 9308040022 930804 MARKETING & MEDIA CAPITAL CITIES CABLE FIRMS REACH ACCORD ON ESPN2 NEW YORK CAPITAL CITIES/ABC INC SIGNED A DEAL WITH THREE CABLE OPERATORS LETTING THEIR CABLE SYSTEMS CARRY ABCOWNED STATIONS' PROGRAMMING IN EXCHANGE FOR ADDING THE COMPANY'S NEW ESPN2 SPORTS CHANNEL CAPITAL CITIES/ABC OWNS EIGHT TV STATIONS AND IS A PARTNER IN ESPN2 WITH HEARST CORP WHICH ITSELF OWNS SIX STATIONS BOTH COMPANIES AGREED TO ALLOW JONES INTERCABLE INC SAMMONS COMMUNICATIONS INC AND MULTIVISION CABLE TV CORP TO CARRY THE BROADCAST SIGNALS OF THEIR STATIONS FOR NO CHARGE THE STATIONS COULD HAVE BEGUN CHARGING CABLE SYSTEMS CASH FEES UNDER THE SOCALLED RETRANSMISSION CONSENT PROVISION OF THE CABLE ACT OF 1992 BUT CAPITAL CITIES/ABC INSTEAD GOT THE THREE CABLE OPERATORS TO AGREE TO A SUBSTANTIAL ROLLOUT OF THE NEW SPINOFF OF THE ESPN SPORTS CHANNEL OF WHICH CAPITAL CITIES OWNS 80 AND HEARST OWNS 20 THE THREE CABLE COMPANIES WHICH TOGETHER COVER SOME 26 MILLION CABLE HOMES WILL PAY A MONTHLY FEE FOR THE ESPN SPINOFF WHICH WILL BE LAUNCHED THIS FALL INCREASINGLY CABLE OPERATORS ARE AGREEING TO CARRY NEW CABLE SERVICES OWNED BY THE BROADCAST NETWORKS IN LIEU OF OUTRIGHT CASH PAYMENTS TO THE NETWORKS' STATION GROUPS LAST MONTH CAPITAL CITIES/ABC SIGNED A SIMILAR DEAL WITH CONTINENTAL CABLEVISION THE THIRDLARGEST CABLE OPERATOR LAST WEEK SIX OTHER CABLE TELEVISION OPERATORS AGREED TO CARRY FOX INC'S NEW BASIC CABLE NETWORK AND FORGO RETRANSMISSION PAYMENTS FOX IS A UNIT OF NEWS CORP 9308040021 930804 INTERNATIONAL MILLIONS OF CHINESE SEEK TSINGTAO BREWERY SHARES SPECIAL TO THE WALL STREET JOURNAL HONG KONG WOULDBE CHINESE INVESTORS HAVE SNAPPED UP ABOUT 300 MILLION APPLICATION FORMS IN HOPES OF A CHANCE OF BUYING TSINGTAO BREWERY CO'S NEW SHARES INDIVIDUALS STAND ONLY ABOUT 006 CHANCE OF SUCCESSFULLY ACQUIRING THE SHARES WHICH WILL BE ISSUED VIA A LOTTERY CHOSEN FROM THE APPLICATIONS SAID HUANG GUIXIAN A DIRECTOR OF SHANGHAI SHENYIN SECURITIES CO THE FINANCIAL ADVISER OF THE CHINESE BREWER'S NEW ISSUE OF 100 MILLION CLASS A SHARES FOR DOMESTIC INVESTORS IN THE MAINLAND THE MEAGER RATE OF SUCCESS ALSO HAS PUSHED UP THE AGGREGATE COST FOR EVERY TSINGTAO SHARE TO NEARLY 13 YUAN 227 INCLUDING THE TWOYUAN COST FOR THE FORMS MR HUANG ADDED THE COMPANY'S SHARES ARE PRICED AT 638 YUAN EACH AND ARE SCHEDULED TO BEGIN TRADING ON THE SHANGHAI SECURITIES EXCHANGE AT THE END OF THE MONTH TSINGTAO AS THE FIRST CHINESE ENTERPRISE DIRECTLY QUOTED IN HONG KONG ALREADY HAS LISTED H SHARES A SPECIAL CLASS OF STOCKS FOR FOREIGNERS ON THE HONG KONG STOCK EXCHANGE 9308040020 930804 BUSINESS BRIEF BANK UNITED OF TEXAS BANK SUES US REGULATORS OVER ACQUISITION OF THRIFT BANK UNITED OF TEXAS SAID IT HAS SUED FEDERAL REGULATORS OVER THE COMPANY'S 1988 ACQUISITION OF THE INSOLVENT UNITED SAVINGS ASSOCIATION OF TEXAS THE LAWSUIT FILED YESTERDAY IN US DISTRICT COURT IN GALVESTON TEXAS ACCUSES THE FEDERAL DEPOSIT INSURANCE CORP THE FSLIC RESOLUTION FUND THE RESOLUTION TRUST CORP THE THRIFT DEPOSITOR PROTECTION OVERSIGHT BOARD AND THE DIRECTOR OF THE OFFICE OF THRIFT SUPERVISION OF BREACHING PROMISES MADE TO BANK UNITED IN CONNECTION WITH THE DEAL THE LAWSUIT INCLUDES 20 SPECIFIC COMPLAINTS AGAINST REGULATORS INCLUDING ALLEGATIONS THAT THE GOVERNMENT RENEGED ON PROMISED TAX BENEFITS AND CHANGED OTHER CONTRACTS THAT WERE PART OF THE 1988 DEAL NONE OF THE DEFENDANTS IN THE CASE COULD BE REACHED LATE YESTERDAY HOUSTONBASED BANK UNITED WHICH INVESTED 200 MILLION IN THE FAILED THRIFT WHEN IT BOUGHT UNITED SAVINGS SEEKS PERFORMANCE AND INJUNCTIVE RELIEF IN THE LAWSUIT AS WELL AS UNSPECIFIED DAMAGES 9308040019 930804 BUSINESS BRIEF CENTRAL & SOUTH WEST CORP BONDHOLDER GROUP BACKS EL PASO ELECTRIC PURCHASE CENTRAL & SOUTH WEST CORP DALLAS SAID THE PALO VERDE LEASE BONDHOLDERS IN THE EL PASO ELECTRIC CO BANKRUPTCY CASE HAVE AGREED TO SUPPORT CENTRAL & SOUTH WEST'S PROPOSAL TO ACQUIRE EL PASO FOR 22 BILLION CENTRAL & SOUTH WEST SAID SUPPORT FROM THE PALO VERDE BONDHOLDERS WHO ARE PARTIAL OWNERS OF A ARIZONA NUCLEAR POWER PLANT THAT IS LEASED TO EL PASO ELECTRIC GIVES THE UTILITY COMPANY'S ACQUISITION OFFER THE BACKING FROM ABOUT 17 BILLION OF 195 BILLION IN CREDITOR CLAIMS THE AGREEMENT BETWEEN THE CENTRAL & SOUTH WEST AND EL PASO WAS ANNOUNCED IN MAY BUT A THIRD UTILITY SOUTHWESTERN PUBLIC SERVICE CO OF AMARILLO TEXAS SUBSEQUENTLY OFFERED THE BANKRUPTCY COURT IN AUSTIN AN ALTERNATIVE ACQUISITION PLAN BONDHOLDER SUPPORT FOR CENTRAL & SOUTH WEST'S PLAN DOESN'T GUARANTEE IT WILL BE ABLE TO BUY EL PASO THAT IS UP TO THE BANKRUPTCY JUDGE OVERSEEING EL PASO'S CASE BUT IT DOES AID CENTRAL & SOUTH WEST'S CHANCES 9308040018 930804 BUSINESS BRIEF ACCOR SA A 5 BLOCK OF SHARES IS SOLD RAISING ABOUT 1337 MILLION ACCOR SA WHICH OWNS THE MOTEL 6 CHAIN AMONG OTHERS CONFIRMED THAT IT SOLD A 5 BLOCK OF SHARES HELD IN ITS TREASURY RAISING ABOUT 800 MILLION FRENCH FRANCS 1337 MILLION A SPOKESWOMAN FOR THE FRENCH HOTEL AND RESTAURANT GROUP SAID THE 1175 MILLION ACCOR SHARES WERE PLACED INTERNATIONALLY AT 680 FRANCS EACH A 37 DISCOUNT TO ACCOR'S CLOSING PRICE OF 706 FRANCS ON THE PARIS STOCK MARKET MONDAY THE SHARES WERE SOLD AFTER THE MARKET CLOSED MONDAY IN TRADING YESTERDAY ACCOR FELL 11 FRANCS TO 695 FRANCS SHE SAID THE SALE NOT ONLY INJECTS ACCOR WITH FRESH CASH BUT ALSO WILL IMPROVE THE GROUP'S DEBTTOEQUITY RATIO AT THIS POINT THOUGH ACCOR HAS NO SPECIFIC ESTIMATES ON THE SALE'S IMPACT TO THE GROUP'S DEBTTOEQUITY IN 1992 ACCOR'S NET DEBT STOOD AT 161 BILLION FRANCS REPRESENTING A DEBTTOEQUITY OF ABOUT 47 9308040017 930804 MEDICINE MERCK WILL EXPLOIT MEDCO'S DATABASE BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL TAKE A DATABASE DETAILING MILLIONS OF DRUG PRESCRIPTIONS ASK YOUR COMPUTER WHICH ONES CAN BE SWITCHED TO YOUR COMPANY'S DRUGS EMPLOY PHARMACISTS TO SUGGEST THE SWITCHES TO PATIENTS' DOCTORS THAT'S THE PRESCRIPTION FOR MARKETING SUCCESS BEHIND MERCK & CO'S PENDING ACQUISITION OF MEDCO CONTAINMENT SERVICES INC MERCK OFFICIALS SAY AND DESPITE CONCERN ABOUT PATIENT PRIVACY THIS HIGHTECH STRATEGY IS EXPECTED TO SET THE MARKETING PATTERN FOR THE INDUSTRY WHEN THE TIFFANY OF DRUG MAKERS AGREED LAST WEEK TO PAY 6 BILLION FOR THE WALMART OF PILLS MERCK WAS BUYING MUCH MORE THAN A MAILORDER DRUG COMPANY IT ALSO WAS BUYING MEDCO'S TECHNOLOGY AND INFORMATION SAYS JERRY T JACKSON MERCK EXECUTIVE VICE PRESIDENT MERCK ALSO WOULD ACQUIRE MORE THAN 1000 PHARMACISTS WHO MAY DECIDE OR ADVISE PHYSICIANS ON HOW PRESCRIPTIONS SHOULD BE FILLED AT THE TIME OF THE MERCK ANNOUNCEMENT SOME IN THE DRUG INDUSTRY WERE SCRATCHING THEIR HEADS WONDERING WHY MERCK WAS WILLING TO PAY SO MUCH TO BUY A DISTRIBUTION ARM THE ANSWER ACCORDING TO MERCK OFFICIALS IS THAT MEDCO'S TECHNOLOGY AND INFORMATION WILL HELP MERCK PROMOTE ITS PHARMACEUTICALS AND INCREASE SALES THROUGH ITS MAILORDER DRUG BUSINESS AND MANAGEMENT OF PHARMACEUTICAL HEALTH PLANS FOR EMPLOYERS AND INDEPENDENT HEALTH PLANS MEDCO COLLECTS INFORMATION ON THE PRESCRIPTION DRUG USE OF 33 MILLION PEOPLE MERCK PLANS TO USE THAT PATIENT DATA BOTH TO HONE ITS INFLUENCE ON THE PRESCRIBING PRACTICES OF PHYSICIANS AND TO COMMUNICATE DIRECTLY WITH PATIENTS URGING THEM FOR EXAMPLE TO REFILL THEIR PRESCRIPTIONS INCREASING PHARMACEUTICAL SALES THROUGH THE USE OF THE PATIENT INFORMATION WAS CLEARLY IMPORTANT TO OUR EVALUATION OF THE MEDCO ACQUISITION SAYS ROBERT O HILLS MERCK VICE PRESIDENT OF BUSINESS STRATEGY AND POLICY MR HILLS HEADED THE INTERNAL MERCK TASK FORCE CALLED PARADIGM THAT RECOMMENDED THE MEDCO ACQUISITION ALTHOUGH THE SPECIFIC PROGRAMS HAVEN'T BEEN WORKED OUT MR HILLS SAYS ONE POSSIBILITY GOES LIKE THIS MERCKMEDCO COULD APPROACH A MEDCO CLIENT SAY GENERAL ELECTRIC ARMED WITH STUDIES AND OTHER EVIDENCE SHOWING THAT A CLASS OF HEART DRUGS ACE INHIBITORS REDUCES THE HOSPITALIZATION AND HEALTHCARE COSTS OF PATIENTS WITH CONGESTIVE HEART FAILURE IF GE AGREED THAT THE DRUGS ARE AN APPROPRIATE COSTSAVING TREATMENT MERCKMEDCO WOULD SEARCH ITS PATIENT FILES FOR GE EMPLOYEES/RETIREES WHO ARE ON THE HEART DRUG DIGOXIN A TREATMENT FOR THE CONDITION IT WOULD THEN CONTACT PHYSICIANS TREATING THOSE PATIENTS AND TELL THEM THAT GE WOULD LIKE THEM TO CONSIDER THE APPROPRIATENESS OF PRESCRIBING AN ACE INHIBITOR MERCK ITSELF MAKES TWO ACE INHIBITORS VASOTEC AND PRINIVIL APPROVED FOR USE TO TREAT CONGESTIVE HEART FAILURE BRISTOLMYERS SQUIBB CO'S CAPOTEN IS THE THIRD MERCKMEDCO PHARMACISTS MIGHT FOLLOW UP WITH A PHONE CALL MENTIONING ADVANTAGES OF MERCK DRUGS SUCH AS LOWER PRICES MR HILLS SAYS HE PROMISES THAT SALESPEOPLE THEMSELVES WON'T HAVE ACCESS TO SPECIFIC PATIENT DATA PHYSICIANS PARTICIPATING IN A HEALTH PLAN OFTEN MUST SELECT DRUGS FROM AN APPROVED LIST CALLED A FORMULARY CURRENTLY MEDCO WHICH MANAGES PHARMACEUTICAL BENEFITS FOR 1500 HEALTH PLANS CREATES FORMULARIES FOR ABOUT HALF OF THEM THE FORMULARY MAY ALLOW SEVERAL CHOICES SUCH AS VASOTEC AND CAPOTEN MERCKMEDCO COULD DO THE SAME SORT OF DATABASE SEARCH AND FOLLOWUP WITH PROSCAR MERCK'S TREATMENT FOR ENLARGED PROSTATES MERCK OFFICIALS ARE KNOWN TO BE FRUSTRATED BY THE SLOW ACCEPTANCE OF PROSCAR USING TRADITIONAL SALES TECHNIQUES MEDCO WILL HELP MERCK CONVINCE EMPLOYERS THAT PROSCAR IS MORE COST EFFECTIVE THAN SURGERY IF AND WHEN THAT DATA EXISTS MR HILLS SAYS MERCK WILL THEN TARGET SPECIFIC PHYSICIANS THAT THE MEDCO DATABASE SHOWS HAVE PATIENTS WITH POSSIBLE PROSTATE ENLARGEMENT JOHN PETILLO PRESIDENT OF BLUE CROSS BLUE SHIELD OF NEW JERSEY WITH 21 MILLION SUBSCRIBERS SAYS THIS MERGER WITH REGARD TO USAGE OF DATA IS GOING TO PROVIDE A WHOLE ARRAY OF OPPORTUNITIES MANY OF WHICH WE MAY NOT HAVE IDENTIFIED PROGRAMS SUCH AS THOSE MERCK IS CONSIDERING WOULD BE ACCEPTABLE AS LONG AS THEY IMPROVE THE QUALITY OF CARE FOR PATIENTS HE SAYS ALTHOUGH HE WOULD PREFER THAT HIS ORGANIZATION BE THE ONE TO CONTACT THE PHYSICIAN MERCK ALSO CAN USE THE MEDCO DATABASE TO IDENTIFY PATIENTS WHO HAVE BEEN PRESCRIBED AN ACE INHIBITOR OR CHOLESTEROLREDUCING DRUG BUT HAVEN'T REFILLED PRESCRIPTIONS HALF OF ALL PATIENTS ON MEVACOR AND VASOTEC DISCONTINUE USE AFTER A YEAR RESULTING IN HUNDREDS OF MILLIONS OF DOLLARS IN LOST SALES MR HILLS SAYS THROUGH MEDCO MERCK CAN TRACK REFILLS AND CONTACT PHYSICIANS OR PATIENTS DIRECTLY OR IT CAN SET UP A PROGRAM TO AUTOMATICALLY SEND REFILLS MR HILLS SAYS SUCH PATIENT DATA COULD HAVE BEEN OBTAINED IN SOME FORM WITHOUT BUYING MEDCO MR HILLS SAYS BUT THE FREE FLOW OF INFORMATION BETWEEN THE TWO ORGANIZATIONS SUBJECT TO PATIENT CONFIDENTIALITY AND THE INTERESTS OF OTHER VENDORS TO MEDCO IS LIKELY TO RESULT IN THE RAPID IDENTIFICATION OF OPPORTUNITIES HE SAYS MORE INFLUENCE BY WORKING DIRECTLY WITH EMPLOYERS AND PATIENTS MERCK CAN EXERT MORE INFLUENCE THAN PHARMACEUTICAL COMPANIES TRADITIONALLY HAVE HAD OVER A PATIENT'S TREATMENT THE TRICK OF COURSE WILL BE TO CONVINCE MEDCO CUSTOMERS THAT IT WON'T COMPROMISE THEIR COSTCONTAINMENT EFFORTS OR PATIENT TREATMENT QUALITY EVEN AS IT INCREASES MERCK'S SALES PHYSICIANS MAY ALSO RESENT A DRUG COMPANY TRYING TO INTERVENE IN THEIR TREATMENT OF PATIENTS WE WOULD HAVE TO LOOK AT THE WAY THE SPECIFIC PROGRAM IS DESIGNED AND MAKE SURE PATIENT CONFIDENTIALITY IS PROTECTED AND PATIENTPHYSICIAN RELATIONSHIP ISN'T COMPROMISED OR BYPASSED IN ORDER TO SELL MORE PHARMACEUTICALS SAYS NANCY DICKEY AN AMERICAN MEDICAL ASSOCIATION TRUSTEE AND A FAMILY PHYSICIAN IN RICHMOND TEXAS USING DATA IN THE WAY MERCK IS SUGGESTING CAN IMPROVE PATIENT CARE SAYS HENRY BLISSENBACH PRESIDENT OF DIVERSIFIED PHARMACEUTICAL SERVICES WHICH ALSO MANAGES PHARMACEUTICAL BENEFITS FOR HEALTH PLANS WHAT TARNISHES THAT IS IT'S BEING STATED BY A MANUFACTURER OF THE DRUG PEOPLE WINCE AT THAT AND HAVE A HARD TIME DECIPHERING THE SCIENTIFIC VALUE VERSUS THE MARKETING OTHER PHARMACEUTICAL BENEFIT MANAGEMENT COMPANIES USE THEIR DATABASES TO EVALUATE PHYSICIANS' PRESCRIBING HABITS DIVERSIFIED PHARMACEUTICAL A BLOOMINGTON MINNBASED UNIT OF UNITED HEALTHCARE CORP ANALYZES PATIENT AND PHYSICIAN INFORMATION TO BETTER MANAGE PATIENT THERAPY MR BLISSENBACH SAYS BUT IT DOESN'T SELL PATIENT OR PHYSICIAN INFORMATION TO OUTSIDERS PHARMACISTS AT WALGREEN CO THE RETAIL AND MAILORDER PHARMACY CHAIN WORK WITH PHYSICIANS TO SWITCH PRESCRIPTIONS FOR BRANDED DRUGS TO GENERICS OR CHEAPER BRANDED VERSIONS A SPOKESMAN SAYS IT SELLS PHYSICIANSPECIFIC INFORMATION TO MARKET RESEARCH COMPANIES BUT DOESN'T RELEASE PATIENT INFORMATION HE SAYS AS THE INDUSTRY UNDERGOES DRAMATIC CHANGES PHARMACEUTICAL COMPANIES WILL BE TAKING RADICAL STEPS TO ADJUST SUCH AS MERCK'S PROPOSED ACQUISITION OF MEDCO SAYS ROBERT E CAWTHORN CHAIRMAN OF RHONEPOULENC RORER ONLY TIME WILL TELL WHICH WILL BE BRILLIANT AND NOT SO BRILLIANT 9308040016 930804 NEW BATTLEGROUND ASIA TARGETS CHEMICALS FOR THE NEXT ASSAULT ON WESTERN INDUSTRY STRONG ECONOMIES DEMAND SPUR CHINA AND OTHERS TO BUILD PLASTICS PLANTS US EUROPEAN MAKERS JOIN IN BY SCOTT MCMURRAY AND JAMES MCGREGOR STAFF REPORTERS OF THE WALL STREET JOURNAL LEGIONS OF PEASANTS OUTSIDE THE GRITTY RIVER PORT OF TIANJIN CHINA NEAR BEIJING ARE LAYING THE FOUNDATION FOR THE LATEST ASIAN ASSAULT ON A MAJOR GLOBAL INDUSTRY CHEMICALS LABORERS MIX CONCRETE TWIST REINFORCED STEEL BAR AND EXCAVATE EARTH BY HAND IN THE GOLDEN TRIANGLE DEVELOPMENT ZONE WHERE A MAMMOTH 700 MILLION PETROCHEMICAL COMPLEX IS TAKING SHAPE ITS STAINLESSSTEEL TOWERS WILL CONVERT CRUDEOIL BYPRODUCTS INTO ETHYLENE FOR USE IN MAKING SCORES OF GOODS FROM PLASTIC PACKAGING AND PIPES TO POLYESTER IT IS JUST THE FIRST OF 14 PLANTS CHINA PLANS TO BUILD BY 1996 SIMILAR PROJECTS ARE UNDER WAY IN A HALF DOZEN OTHER ASIAN COUNTRIES FROM SOUTH KOREA TO SINGAPORE ASIAN CHEMICAL PRODUCERS OFTEN IN TANDEM WITH WESTERN PARTNERS HAVE EMBARKED ON THE INDUSTRY'S BIGGEST BUILDING DRIVE SINCE THE RECONSTRUCTION OF EUROPE AFTER WORLD WAR II WITHIN A DECADE THE GLOBAL BALANCE OF POWER IN PETROCHEMICALS WILL TILT TOWARD ASIA THE REGION'S ANNUAL CHEMICAL PRODUCTION IS PROJECTED TO MORE THAN DOUBLE TO 604 BILLION ANNUALLY BY 2002 AND TO ACCOUNT FOR 35 OF THE WORLD MARKET EDGING OUT THE US AS THE WORLD LEADER BY A FEW PERCENTAGE POINTS ASIA WILL HAVE OUTSTRIPPED THE AMERICAN AND EUROPEAN ECONOMIC BLOCS IN CHEMICAL PRODUCTION BY THE TURN OF THE CENTURY PREDICTS HANNS STECHL AN EXECUTIVE DIRECTOR OF GIANT BASF AG BUT THE ASIAN PRODUCERS AREN'T ONLY CREATING A REGIONAL POWERHOUSE IN THE CHEMICAL INDUSTRY THEY ARE FLOODING EXPORT MARKETS DRIVING GLOBAL PRICES FOR SOME PETROCHEMICALS AND PLASTICS TO THEIR LOWEST LEVELS IN A DECADE AND DELAYING A CYCLICAL RECOVERY IN THE INDUSTRY BY AS MUCH AS TWO YEARS THE ASIAN BUILDUP ALSO IS HELPING DRIVE DOWN EARNINGS AND TRIGGER LAYOFFS AT COMMODITY CHEMICAL MAKERS FROM DOW CHEMICAL CO IN MIDLAND MICH TO BASF WHICH IS IN LUDWIGSHAFEN GERMANY PACIFIC RIM CHEMICAL EXPORTS ALREADY ARE CUTTING SHARPLY INTO EUROPEAN AND US MAKERS' CHEMICAL SALES TO ASIA IN SOUTH KOREA ALONE SIX ETHYLENE PLANTS STARTED PRODUCTION OVER THE PAST TWO YEARS MORE THAN DOUBLING SOUTH KOREA'S CAPACITY AND EQUALING AN ENTIRE YEAR'S GROWTH IN WORLD ETHYLENE CAPACITY AS A RESULT WESTERN EXPORTS TO ASIA OF MOST TYPES OF POLYETHYLENE PLASTIC COULD FALL BY HALF OVER THE NEXT TWO YEARS SAYS HOWARD BLUM A CONSULTANT WITH CHEM SYSTEMS INC OF TARRYTOWN NY BUT THIS ISN'T THE LATEST CHAPTER IN THE DECLINE OF THE WEST US AND EUROPEAN CHEMICAL GIANTS SAY THEY AREN'T SITTING IDLY BY AS THEIR STEEL AND AUTO COUNTERPARTS INITIALLY DID WHEN ASIAN PRODUCERS GRABBED HUGE SHARES OF THEIR INDUSTRIES FACED WITH MATURE MARKETS AND SLUGGISH ECONOMIES AT HOME US AND EUROPEAN CHEMICAL PRODUCERS ARE SCRAMBLING TO BUILD ASIAN PLANTS AND FORGE ALLIANCES FROM SOUTH KOREA TO CHINA AND INDONESIA TENS OF BILLIONS OF DOLLARS IN FOREIGN CAPITAL HAVE BEEN SPENT OR EARMARKED OVER THE PAST FEW YEARS FOR ASIAN PETROCHEMICAL COMPLEXES THAT RANKS CHEMICALS SECOND ONLY TO THE OIL INDUSTRY FROM WHICH IT DRAWS ITS FEEDSTOCKS AS A DESTINATION FOR FOREIGN INVESTMENT IN ASIA OUTSIDE OF JAPAN INDUSTRY OFFICIALS ESTIMATE BRITAIN'S IMPERIAL CHEMICAL INDUSTRIES PLC SPENT 1 BILLION OVER THE PAST FEW YEARS IN TAIWAN JAPAN AND MALAYSIA WHILE EXPECTING TO SPEND 1 BILLION MORE IN ASIA BY 2000 AND DUPONT CO IS BUILDING A 1 BILLION FIBER CHEMICAL COMPLEX IN SINGAPORE AND THIS TIME WESTERN COMPANIES AREN'T FLINCHING AT TAKING ON JAPAN IN ITS OWN BACKYARD THAT IS BECAUSE JAPAN EXPORTS MOST OF ITS CHEMICALS IN THE FORM OF SONY STEREO CASES OR TOYOTA DASHBOARDS ITS CHEMICAL MAKERS WHO BELATEDLY HAVE BEEN EXPANDING IN ASIA IN RECENT YEARS HAVE NEVER HAD THE WORLDSCALE PLANTS OR ACCESS TO CHEAP FEEDSTOCKS TO COMPETE GLOBALLY NOR IN MOST CASES HAVE THEY RIVALED US AND EUROPEAN COMPANIES IN TECHNOLOGICAL PROWESS INDEED JAPAN IS THE LAND OF THE SETTING SUN IN TERMS OF ASIAN PETROCHEMICAL CLOUT A DECADE AGO IT ACCOUNTED FOR 76 OF REGIONAL ETHYLENE CAPACITY EVEN THOUGH ITS DOMESTIC INDUSTRIES CONSUMED NEARLY ALL THE ETHYLENE IT PRODUCED WHILE TOTAL ASIAN ETHYLENE CAPACITY HAS GROWN SINCE THEN JAPAN'S SHARE HAS CONTRACTED TO 46 AND IS EXPECTED TO SHRINK TO LESS THAN 40 A DECADE FROM NOW JAPAN IS EXPECTED TO CONTINUE CONSUMING MOST OF THE ETHYLENE IT PRODUCES ALTHOUGH IT PROBABLY WILL CONTINUE EXPORTING CERTAIN SPECIALTY CHEMICALS AND PLASTICS US COMPANIES HAVE DETERMINED THAT THEIR FUTURE RESTS ON PARTICIPATING IN THE ASIAN CHEMICAL MARKET TO BE A VIABLE WORLD PLAYER A COMPANY HAS GOT TO BE A MAJOR PARTICIPANT IN THE DEVELOPMENT OF THE CHEMICAL MARKETS IN ASIAPACIFIC ASSERTS EARNEST DEAVENPORT PRESIDENT OF EASTMAN CHEMICAL CO WHOSE HEADQUARTERS ARE HALF A WORLD AWAY IN KINGSPORT TENN EASTMAN A 4 BILLIONAYEAR COMPANY AND ONE OF THE LARGEST MAKERS OF POLYETHYLENEPLASTIC PACKAGING FOR SODA AND OTHER BEVERAGES OPENED A REGIONAL HEADQUARTERS IN SINGAPORE THIS YEAR DUPONT INTENDS TO SPEND 2 BILLION IN ASIAN PROJECTS BY THE END OF THE DECADE SAYS CHARLES HOLLIDAY HEAD OF OPERATIONS FOR THE REGION FOR THE WILMINGTON DEL COMPANY WITH THE SINGAPORE SYNTHETICFIBERS PLANT GETTING HALF THE 2 BILLION THE REST IS EARMARKED FOR PROJECTS IN CHINA AND SEVERAL OTHER ASIAN SITES OTHER GLOBAL GIANTS ARE STAKING OUT THEIR TURF IN ASIA TOO ANGLODUTCH GIANT ROYAL DUTCH/SHELL GROUP IS DRAFTING PLANS TO BUILD A NAPHTHA PLANT IN HUIZHOU IN SOUTHERN CHINA'S BOOMING GUANGDONG PROVINCE SOCIETE NATIONALE ELF AQUITAINE OF FRANCE IS CONTEMPLATING A PLANT IN SHANGHAI BRITAIN'S ICI DERIVES 10 OF ITS SALES FROM ASIA TODAY AND EXPECTS THE SHARE TO DOUBLE BY THE END OF THE DECADE HERE IN CHINA'S 20SQUAREKILOMETER GOLDEN TRIANGLE ZONE NOW MOSTLY A WASTELAND OF SCRUB BRUSH AND ALKALINE SOIL NEAR THE BIG HARBOR OIL FIELD TIANJIN PETROCHEMICAL CORP IS PUTTING UP THREE OIL REFINERIES THREE ETHYLENE CRACKERS WHICH TURN NAPHTHA INTO ETHYLENE GAS FOR USE IN PLASTIC MAKING AND DOZENS OF OTHER FACILITIES STATEOWNED TIANJIN PETROCHEMICAL FOUND NO SHORTAGE OF FOREIGN PARTNERS WILLING TO SELL TECHNOLOGY AND EQUIPMENT AND HELP ARRANGE FINANCING INDEED THE ZONE REPRESENTS A PETROCHEMICAL PRODUCERS' GOLD RUSH WESTERN COMPANIES INVOLVED IN THE GOLDEN TRIANGLE PROJECT INCLUDE ROYAL DUTCH/SHELL UNION CARBIDE CORP SPAIN'S TECHNIMONT FUTECSAUHDE OF ITALY AND TEC OF JAPAN EVERY CITY IN CHINA WANTS TO BUILD CHEMICAL PLANTS BECAUSE THE CHEMICALS PROVIDE A BASE FOR SO MANY MANUFACTURING INDUSTRIES SAYS WEI GUOCHONG THE PLANT'S DEPUTY DIRECTOR SHOUTING OVER THE ROAR OF DIESELPOWERED CRANES SOUTH KOREA AFTER ITS RECENT BUILDING BINGE HAS ABOUT 25 OF ASIAN ETHYLENE CAPACITY WITH DEPRESSED DEMAND AT HOME KOREA IS EXPORTING ROUGHLY HALF OF ITS PRODUCTION TAIWAN IS STILL A NET IMPORTER OF ETHYLENE TO SUPPLY ITS DOMESTIC ECONOMY BUT PLANS FOR A RECENT MEGAPLANT ANNOUNCED BY FORMOSA PLASTICS WILL ALMOST ENSURE THAT TAIWAN JOINS THE LEAGUE OF WORLD EXPORTERS BY THE END OF THE DECADE SINGAPORE ALREADY A NET EXPORTER IS ADDING TO ITS ETHYLENE CAPACITY INDONESIA AND MALAYSIA ARE JOINING THE ETHYLENE PLANT BUILDING BINGE BUT THEIR PETROCHEMICAL INDUSTRIES ARE IN THEIR INFANCIES THIS REGIONAL PETROCHEMICAL EXPANSION IS CAUSING SOME GROWING PAINS WHILE KOREA'S ETHYLENE PLANTS ARE OWNED BY SOME OF ITS LARGEST CONGLOMERATES ANALYSTS BELIEVE THE PLANTS ARE SELLING ETHYLENE AT WELL BELOW THE COST OF PRODUCTION AND INTEREST ON PLANT CONSTRUCTION LOANS TO ATTRACT BUYERS OVERSEAS IT WILL TAKE TWO TO THREE YEARS OF TEETHGRITTING BEFORE ONE CAN HOPE THAT DEMAND CATCHES UP WITH SUPPLY AND PRICES RETURN TO SOME SENSE OF ORDER AMONG KOREAN ETHYLENE PRODUCERS SAYS ANTHONY NAZZARO AN ANALYST FOR JARDINE FLEMING SECURITIES LTD IN SEOUL WESTERN CHEMICAL PRODUCERS ALSO WORRY THAT BY AIDING AND ABETTING THE ASIAN EXPANSION THEY MAY BE HARMING THEIR OWN INTERESTS BRITISH PETROLEUM PLC'S CHEMICAL DIVISION WAS PRESSURED BY CHINA FOR FIVE YEARS BEFORE FINALLY AGREEING IN FEBRUARY TO LICENSE ITS TECHNOLOGY FOR AN ACETIC ACID PLANT IN SHANGHAI WE HAD TO MAKE SURE THAT DEMAND HERE IS SUFFICIENT SO THAT WE WOULDN'T JUST BE PUSHING MORE PRODUCT ONTO THE WORLD MARKET SAYS DONALD CLIFT DIRECTOR OF BP'S CHEMICALDIVISION OFFICE IN BEIJING WE WOULDN'T BE DOING OUR LICENSEE OR OURSELVES ANY GOOD TO PUT THE CHEMICAL ON THE WORLD MARKET AND SIMPLY FORCE DOWN WORLD PRICES ONCE ALL THE NEW ASIAN PRODUCTION COMES ON STREAM IN THE COMING DECADE DOGFIGHTS AND PRICEDUMPING AMONG THE NEWLY MUSCULAR ASIAN CHEMICAL PRODUCERS ARE LIKELY TO ENSUE AND EUROPEAN AND US PARTNERS WILL FIND OUT WHETHER THE NEW CAPACITY THEY HELPED UNLEASH WILL BE ABSORBED BY ASIA'S OWN HUMMING ECONOMIES OR WILL TRIGGER ANOTHER GLOBAL GLUT THAT QUESTION ALREADY IS ARISING IN CHINA GLOWING GOVERNMENT PROPAGANDA PREDICTS THAT THE COUNTRY WILL SEE 10 ANNUAL GROWTH IN CHEMICAL OUTPUT ATTRACT 10 BILLION IN FOREIGN INVESTMENT TO BUILD 100 CHEMICAL COMPLEXES BY THE YEAR 2000 AND EXPORT 10 BILLION OF CHEMICALS ANNUALLY BY THE TURN OF THE CENTURY BUT CAI QIANG A PLANNING OFFICIAL IN CHINA'S MINISTRY OF CHEMICAL INDUSTRY MINIMIZES THE IDEA OF HUGE CHEMICAL EXPORTS HE SAYS THAT EVEN WITH A MASSIVE BUILDUP CHINA'S BOOMING ECONOMY AND 116 BILLION PEOPLE WILL ENSURE THAT MOST PRODUCTION GOES FOR DOMESTIC USE OUR MARKET IS SO BIG I DON'T THINK WE WILL BE A BIG COMPETITOR IN INTERNATIONAL MARKETS SAYS MR CAI WE WILL HAVE SOME EXPORTS BUT WE WILL STILL HAVE BIG IMPORT NEEDS STEVE GLAIN CONTRIBUTED TO THIS ARTICLE 9308040015 930804 WANG LABORATORIES SAYS STEINHARDT IS PART OF INVESTMENT GROUP LOWELL MASS WANG LABORATORIES INC IDENTIFIED STEINHARDT MANAGEMENT CO AS PART OF A GROUP THAT HAS AGREED TO INVEST 60 MILLION IN THE COMPANY WHICH PLANS TO EMERGE FROM BANKRUPTCY LAW PROTECTION IN SEPTEMBER THE EMERGENCE OF STEINHARDT'S NAME IN BANKRUPTCY COURT FILINGS IS ONE OF THE CLEAREST SIGNALS OF CONFIDENCE THAT WANG WILL SURVIVE WITH SOUND FINANCES EVEN AFTER ITS PRESENT COMMON STOCKHOLDERS HAVE SEEN THEIR INVESTMENTS VIRTUALLY WIPED OUT STEINHARDT MANAGEMENT A NEW YORK HEDGE FUND HAS SUCCESSFULLY INVESTED IN SUCH DISTRESSED SECURITIES AS SUNBEAMOSTER CO IN THE PAST MICHAEL STEINHARDT MANAGING PARTNER DIDN'T RETURN PHONE CALLS ON MONDAY WANG ANNOUNCED THAT INVESTORS HAD AGREED TO BUY A NEW ISSUE OF PREFERRED STOCK COMMON STOCK AND WARRANTS BUT IT DECLINED TO IDENTIFY THEM IN ANOTHER COURT FILING WANG SAID IT WILL MOVE OUT OF ITS HEADQUARTERS COMPLEX IN LOWELL AND EFFECTIVELY DEFAULT ON ITS 13 MILLION MORTGAGE ON THE FACILITY WHICH INCLUDES THREE LINKED 13STORY TOWERS THE MORTGAGE IS HELD BY AETNA LIFE & CASUALTY CO AND LOWELL FINANCIAL DEVELOPMENT CORP A SPOKESMAN SAID THE TOWERS HAVE 14 MILLION SQUARE FEET OF SPACE MORE THAN FOUR TIMES WANG'S CURRENT NEEDS THE STEINHARDT GROUP WOULD GET 12 IN PREFERRED STOCK EXCHANGEABLE INTO DEBENTURES AT THE COMPANY'S OPTION 24 MILLION NEW COMMON SHARES AND WARRANTS TO BUY AN ADDITIONAL 12 MILLION NEW SHARES AT 750 A SHARE ON A FULLY DILUTED BASIS THAT WOULD AMOUNT TO NEARLY 10 OF WANG'S NEW STOCK A SPOKESMAN SAID PREBANKRUPTCY HOLDERS OF WANG'S OLD COMMON WOULD GET PENNIES PER SHARE IN WARRANTS TO BUY NEW COMMON AFTER OTHER CLAIMS ARE SATISFIED THE PROPOSED INVESTMENT IS MORE THAN THE 40 MILLION WANG ANTICIPATED IN ITS REORGANIZATION PLAN FILED LAST MONTH AS A RESULT IT'S POSSIBLE THEY COULD EMERGE WITH NO DEBT SAID C HALL SWAIM A BOSTON LAWYER FOR THE UNSECURED CREDITORS COMMITTEE 9308040014 930804 ENTERTAINMENT POLYGRAM NV BUYS MOTOWN FOR 301 MILLION BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK POLYGRAM NV ACQUIRED BLACK MUSIC POWERHOUSE MOTOWN FOR 301 MILLION SIGNIFICANTLY BOOSTING THE US PRESENCE OF THE LONDONBASED RECORD AND FILM COMPANY AND PROVIDING NEW MUSCLE TO PROPEL MOTOWN'S GROWTH POLYGRAM WHICH IS RANKED THIRD IN WORLDWIDE RECORD SALES IS GETTING MOTOWN'S CURRENT ROSTER OF ABOUT 30 ARTISTS PLUS MORE THAN 30000 MASTER RECORDINGS BY SUCH GREATS AS THE SUPREMES THE FOUR TOPS MARVIN GAYE THE TEMPTATIONS AND SMOKEY ROBINSON AND THE MIRACLES MOTOWN IS ONE OF THE MOST FAMOUS AND PRESTIGIOUS NAMES IN THE ENTERTAINMENT WORLD SAID POLYGRAM PRESIDENT AND CHIEF EXECUTIVE ALAIN LEVY I BELIEVE WE CAN HELP THIS IMPORTANT LABEL TO EXPAND ITS INFLUENCE AND SUCCESS NOT JUST IN MUSIC BUT IN OTHER ENTERTAINMENT FIELDS SUCH AS MOVIES POLYGRAM WHICH ITSELF IS 80OWNED BY DUTCH CONSUMER ELECTRONICS GIANT PHILIPS ELECTRONICS NV HAS BEEN DISTRIBUTING MOTOWN IN THE US SINCE 1991 AND WORLDWIDE SINCE LAST YEAR FOUNDED IN DETROIT IN 1959 BY INDUSTRY LEGEND BERRY GORDY MOTOWN IS ONE OF THE LAST SIGNIFICANT INDEPENDENT LABELS IN THE RECORD BUSINESS BUT HAD RECENTLY BEEN MIRED IN TROUBLES WITH ITS SUBSEQUENT OWNERS MOTOWN WAS SOLD IN 1988 TO MCA INC A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO AND INVESTMENT FIRM BOSTON VENTURES BUT COMPLAINED OF INADEQUATE PROMOTION AND DISTRIBUTION OF ITS RECORDS BY MCA MOTOWN SWITCHED ITS DISTRIBUTION TO POLYGRAM PROMPTING A BITTER LAWSUIT BY MCA THAT WAS FINALLY SETTLED IN MARCH BOSTON VENTURES BOUGHT BACK MCA'S SHARE AND IS NOW SELLING THE ENTIRE CONCERN TO POLYGRAM AFTER ITS PHENOMENAL GROWTH IN THE '60S THE MOTOWN LABEL STAGNATED BEFORE A REVIVAL STARTED IN THE LATE '80S AFTER THE ARRIVAL OF CURRENT PRESIDENT AND CHIEF EXECUTIVE OFFICER JHERYL BUSBY HE GAMBLED ON UNPROVEN YOUNG TALENT SOME OF WHOM HAVE PROVEN VERY SUCCESSFUL THE ALBUM COOLEYHIGHHARMONY BY BOYZ II MEN HAS SOLD OVER SIX MILLION COPIES AND MOTOWN IS ALSO DOING WELL WITH ANOTHER BAD CREATION BUT THE BITTER BATTLE WITH MCA CREATED A FRUSTRATING DISTRACTION WHEN THE COMPANY WAS POISED FOR GROWTH MR BUSBY WHO WILL CONTINUE IN HIS POST SAYS THE MERGER WILL GIVE MOTOWN THE CAPITAL TO PLAY IN THE EMERGING MULTIMEDIA MULTICULTURAL GLOBAL ENTERTAINMENT COMMUNITY THE 43YEAROLD EXECUTIVE ADDS THAT THE COMPANY CAN GROW MORE AGGRESSIVELY WITH A DEEPPOCKETED PARENT AND ITS PLANS INCLUDE LEVERAGING THE MOTOWN NAME THROUGH LICENSES WHICH MAY INCLUDE VENTURES LIKE RESTAURANTS AND TELEVISION PROGRAMS I COULD SEE SOMETHING LIKE THE HALLMARK HALL OF FAME ONLY IT WOULD BE MOTOWN PRESENTS' SAYS MR BUSBY POLYGRAM'S GOAL FOR SEVERAL YEARS HAS BEEN TO OBTAIN AT LEAST A 14 SHARE OF THE IMPORTANT US MUSIC MARKET AND THE ADDITION OF MOTOWN SHOULD FINALLY PUSH IT TO THAT LEVEL WITH THE ACQUISITION IN RECENT YEARS OF INDEPENDENT US LABELS ISLAND RECORDS AND A&M POLYGRAM REACHED ABOUT A 12 SHARE OF THE US MARKET MR LEVY SAYS MOTOWN COULD ADD AS MUCH AS 15 PERCENTAGE POINTS THE ACQUISITION RUMORED FOR WEEKS CAME AS LESS OF A SURPRISE TO ANALYSTS THAN POLYGRAM'S 19 RISE IN PROFIT IN THE FIRST SIX MONTHS ALSO ANNOUNCED YESTERDAY THE HIGHER THAN EXPECTED RESULTS COINCIDING WITH AN ACQUISITION REGARDED AS A SAVVY MOVE HELPED BOOST ANALYSTS' ESTIMATES FOR THE COMPANY'S EARNINGS THIS YEAR AND ALSO LIFTED ITS STOCK PRICE DESPITE THE DEPRESSED EUROPEAN MARKET AND A ROSTER OF NEW RECORDINGS THAT WAS WEAKER THAN USUAL POLYGRAM REPORTED A 6 GAIN IN FIRST HALF NET SALES TO 167 BILLION FROM 157 BILLION EARNINGS ROSE TO 107 MILLION OR 63 CENTS A SHARE UP FROM 90 MILLION OR 53 CENTS A SHARE POLYGRAM'S STOCK ROSE 1625 A SHARE OR 56 TO 30875 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY MR LEVY TOLD ANALYSTS THAT POLYGRAM HAS ASSIGNED A VALUE TO THE MOTOWN NAME ALONE OF ABOUT 50 MILLION THE PURCHASE PRICE OF 301 MILLION ABOUT 22 TIMES MOTOWN'S REPORTED ANNUAL SALES IS REGARDED BY ANALYSTS AS A BIT PRICEY EVEN FOR A WELLREGARDED INDEPENDENT LABEL BUT NOT OUTRAGEOUS FOR A ONEOFAKIND COMPANY KNOWN BY MUSIC FANS WORLDWIDE AS PART OF THE DEAL POLYGRAM ASSUMES 24 MILLION IN LIABILITIES THE TRANSACTION WHICH IS SUBJECT TO REGULATORY APPROVAL WILL BE EFFECTIVE RETROACTIVELY TO JULY 1 POLYGRAM ALSO ANNOUNCED PLANS FOR AN EQUITY OFFERING IN THE FALL OF UP TO 10 MILLION NEW COMMON SHARES TO REPAY ITS BRIDGE FINANCING FOR THE MOTOWN ACQUISITION MR LEVY SAYS THE PRICE OF THE SHARES WILL BE DETERMINED IN LATE SEPTEMBER PHILIPS ELECTRONICS WON'T PARTICIPATE IN THE SHARE ISSUE MEANING THAT ITS CURRENT 794 POLYGRAM STAKE WILL BE DILUTED TO ABOUT 75 POLYGRAM IS ONE OF PHILIPS' MOST PROFITABLE BUSINESSES BUT THE DUTCH ELECTRONICS CONCERN HAS BEEN TOO PREOCCUPIED LATELY TRYING TO STEM LOSSES AT ITS CORE CONSUMER ELECTRONICS DIVISION AND WITH REDUCING ITS HEAVY DEBT TO CONSIDER ANY EXPANSIONARY MOVES MOTOWN WHICH ALSO HAS INTERESTS IN FILM TELEVISION AND VIDEO IS EXPECTED TO PUT MORE ENERGY INTO THOSE AREAS POLYGRAM HAS RECENTLY BOUGHT A NUMBER OF SMALL PRESTIGIOUS INDEPENDENT FILMMAKERS AND THE FIRST MOVIE PUT OUT BY ITS JOINT VENTURE IN NORTH AMERICAN FILM DISTRIBUTION WAS POSSE A MOVIE ABOUT BLACK COWBOYS I THINK BLACK MOVIES WILL BECOME AS IMPORTANT IN THE FUTURE AS BLACK MUSIC HAS BECOME NOW SAYS MR LEVY ALSO IMPORTANT MOTOWN SHOULD HELP POLYGRAM INCREASE ITS PROFIT MARGINS IN NORTH AMERICA WHICH ARE CONSIDERED WEAK AT 36 OF 1992 SALES ANALYSTS SAID FINANCIAL ANALYST CORNE ZANDBERGEN OF AMSTERDAMBASED BANK VAN HAFTEN LABOUCHERE SAYS POLYGRAM SHOULD BE ABLE TO GET MORE PROFIT AS AN OWNER OF MOTOWN BECAUSE NOW THEY'LL CONTROL PROMOTION AND THE USE OF ARTISTS MOTOWN WILL CONTINUE TO BE BASED IN LOS ANGELES WHERE MR BUSBY WILL REPORT TO AN EIGHTMEMBER MANAGEMENT BOARD BOTH MR BUSBY AND BOSTON VENTURES MOTOWN'S PREVIOUS OWNERS WILL RECEIVE ADDITIONAL MONEY IF THE VALUATION OF MOTOWN REACHES CERTAIN LEVELS SAYS MR LEVY IN ADDITION IF MOTOWN ACHIEVES CERTAIN OBJECTIVES MR BUSBY SAID A PORTION OF THE COMPANY MAY BE TAKEN PUBLIC AFTER FIVE YEARS BY POLYGRAM 9308040013 930804 SPECIAL TODAY ONLY SIX MILLION DINARS FOR A SNICKERS BAR THE BIZARRE ECONOMY OF SERBIA CREATES AN INFLATION RATE WELL INTO THE QUADRILLIONS BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL BELGRADE YUGOSLAVIA AT THE LUNA BOUTIQUE A SNICKERS BAR COSTS SIX MILLION DINARS OR AT LEAST IT DOES UNTIL MANAGER TIHOMIR NIKOLIC READS THE OVERNIGHT FAX FROM HIS BOSS RAISE PRICES 99 THE DOCUMENT TERSELY ORDERS IT WOULD BE AN EVEN 100 EXCEPT THAT THE COMPUTERS AT THE BOUTIQUE WHICH WOULD BE CONSIDERED A DIME STORE IN OTHER PARTS OF THE WORLD CAN'T HANDLE THREEDIGIT CHANGES SO FOR THE SECOND TIME IN THREE DAYS MR NIKOLIC SETS ABOUT RAISING PRICES HE JAMS A MOP ACROSS THE DOOR FRAME TO KEEP CUSTOMERS FROM GETTING AWAY WITH A BARGAIN THE COMPUTER SPITS OUT THE NEW PRICES ON PERFORATED PAPER THE MANAGER AND TWO ASSISTANTS RIP THE PAPER INTO TAGS AND TAPE THEM TO THE SHELVES THEY USED TO PUT THE PRICES DIRECTLY ON THE GOODS BUT THERE WERE SO MANY STICKERS IT WAS GETTING DIFFICULT TO READ THE LABELS AFTER FOUR HOURS THE MOP IS REMOVED FROM THE DOOR THE CUSTOMERS WANDER IN RUB THEIR EYES AND SQUINT AT THE TAGS COUNTING THE ZEROS MR NIKOLIC HIMSELF SQUINTS AS THE COMPUTER PRINTS ANOTHER PRICE THIS ONE FOR A VIDEO RECORDER IS THAT BILLIONS HE ASKS HIMSELF IT IS 20391560223 DINARS TO BE PRECISE HE POINTS TO HIS TSHIRT WHICH IS EMBLAZONED WITH THE WORDS FAR OUT THE NAME OF A FRUIT JUICE HE ONCE SOLD HE SUGGESTS IT IS AN IDEAL MOTTO FOR SERBIA'S BIZARRE ECONOMIC SITUATION IT FITS THE CRAZINESS HE SAYS THE GOVERNMENT MINT HIDDEN IN A PARK BEHIND THE BELGRADE RACE TRACK IS SAID TO BE CHURNING OUT DINARS 24 HOURS A DAY FURIOUSLY TRYING TO KEEP UP WITH THE INFLATION THAT IS FUELED IN TURN BY ITS OWN NONSTOP PRINTING THE GOVERNMENT WHICH BELIEVES IN THROWING AROUND MONEY TO DAMP DISSENT NEEDS DINARS TO PAY WORKERS FOR NOT WORKING AT CLOSED FACTORIES AND OFFICES IT NEEDS THEM TO BUY THE HARVEST FROM THE FARMERS IT NEEDS THEM TO FINANCE ITS SMUGGLING FORAYS AND OTHER WAYS TO EVADE THE SANCTIONS BRINGING IN EVERYTHING FROM OIL TO MR NIKOLIC'S SNICKERS BARS IT ALSO NEEDS THEM TO SUPPLY BROTHER SERBS FIGHTING IN BOSNIAHERZEGOVINA AND CROATIA THE MONEYCHANGERS WHOSE FINGERTIPS DETECT THE SLIGHTEST CHANGE IN PAPER QUALITY INSIST THAT THE MINT IS EVEN CONTRACTING OUT TO PRIVATE PRINTERS TO MEET DEMAND WE'RE EXPERTS THEY CAN'T FOOL US SAYS ONE OF THE CHANGERS AS HE HANDS OVER 800 MILLION WORTH OF FIVEMILLIONDINAR BILLS THESE HE NOTES CONFIDENTLY ARE FRESH FROM THE MINT HE SAYS HE GOT THEM FROM A PRIVATE BANK WHICH GOT THEM FROM THE CENTRAL BANK WHICH GOT THEM FROM THE MINT AN UNHOLY CIRCUIT LINKING THE BLACK MARKET WITH THE FINANCE MINISTRY IT'S COLLECTIVE LUNACY THE MONEYCHANGER SAYS LAUGHING WICKEDLY LEST HE LOSE HIS PLACE ON THIS DINAR MERRYGOROUND THE CHANGER REFUSES TO BE IDENTIFIED THE FINANCE MINISTER REFUSES TO BE INTERVIEWED SO DO THE GOVERNOR OF THE CENTRAL BANK AND THE DIRECTOR OF THE MINT BANKERS BAR REPORTERS FROM THEIR OFFICES ONE WILL GRANT AN INTERVIEW BUT ONLY FOR SEVERAL HUNDRED DOLLARS STANKO IVKOVIC THE DEPUTY DIRECTOR OF SERBIA'S FINANCIAL SUPERVISION OFFICE AGREES TO TALK MAINLY SO HE CAN LAMBASTE THE US AND EUROPE FOR PUTTING THE SERBS THROUGH SUCH MISERY BY TAKING AWAY THEIR INTERNATIONAL CREDIT WE'VE BEEN FORCED BY THE WORLD TO WORK MORE WITH CASH THAN WE'RE USED TO HE SAYS HE IS ALSO NOT USED TO TAKING THE BUS TO WORK AND SITTING AT HOME ON WEEKENDS THE FALLOUT FROM HIS PLUNGING SALARY HE CAN'T BELIEVE THAT THE SAME AMERICA THAT SOLD HIM IBM COMPUTERS TO SUPERVISE SERBIA'S CASH FLOW WOULD NOW PULL THE PLUG ON THE ECONOMY NEXT TIME HE MUSES WE WILL BUY JAPANESE OR KOREAN THE SANCTIONS WHICH AIM TO CUT OFF THE FLOW OF GOODS INTO AND OUT OF SERBIA ARE SUPPOSED TO FORCE THE GOVERNMENT OF PRESIDENT SLOBODAN MILOSEVIC INTO PERSUADING THE BOSNIAN SERBS TO STOP FIGHTING IN BOSNIA FAILING THAT THEY ARE SUPPOSED TO PERSUADE THE SERBIAN POPULATION TO OVERTHROW MR MILOSEVIC SO FAR AFTER A YEAR OF ECONOMIC HARDSHIP NEITHER IS HAPPENING THE AVERAGE SERBIAN SALARY HAS FALLEN TO ABOUT 20 A MONTH BREAD IS FREQUENTLY UNAVAILABLE HOSPITALS ADVISE PATIENTS TO BRING THEIR OWN BANDAGES IT TAKES MORE DINARS TO BUY A CANDY BAR TODAY THAN IT DID TO BUY A CAR TWO YEARS AGO IS THIS WHAT THE WEST CALLS HUMAN RIGHTS DEPRIVING US OF HEATING OIL FOOD MEDICINE AN ECONOMY IS THAT YOUR DEMOCRACY ASKS LJILJANA DANILOVIC 62 WHILE WAITING SEVERAL HOURS IN LINE AT A BANK TO COLLECT HER MONTHLY PENSION ALL 160 MILLION DINARS OF IT THAT'S 16 AT THE HYATT RATE THE CROWD WAITING WITH HER GROWLS A SERBIAN VERSION OF HEAR HEAR WHY SHOULD WE BLAME OUR GOVERNMENT ASKS MRS DANILOVIC IN GENUINE WONDER IT IS ONLY TRYING TO PROTECT US FROM CROATIAN AND MUSLIMSPONSORED GENOCIDE SHE ADMIRES THE NODDING HEADS AROUND HER WE'D RATHER STAND IN LINE LIKE THIS SHE SAYS THAN BE IN A GRAVE THE WEEKLY PAYDAY HERE IS A TRUE ADVENTURE AS COMPANY ACCOUNTANTS SPEND HOURS TRYING TO ROUND UP ENOUGH DINARS THE SECOND THE WORKERS GET PAID THEY SCRAMBLE TO THE MONEYCHANGERS TO CONVERT THE DINARS TO GERMAN MARKS OR DOLLARS WHICH RISE IN VALUE WITH INFLATION WHENEVER THEY NEED TO BUY SOMETHING THEY CHANGE THE FOREIGN CURRENCY BACK DENIS CELEBIC WHO MANAGES A CONSTRUCTIONSUPPLY COMPANY DASHES FROM THE MONEYCHANGERS TO A STORE TO BUY DIAPERS FOR HIS SEVENDAYOLD DAUGHTER BEFORE THE PRICE GOES UP HE MAKES IT AND PLOPS 152 MILLION DINARS ON THE COUNTER YOU CAN'T KEEP DINARS IN YOUR POCKETS HE SAYS IF YOU STOP TO HAVE A COFFEE YOU LOSE MONEY THAT IS WHY DRAGAN JOVANOVIC AND DEJAN MISOVIC STOP FOR COFFEE BEFORE THEY CHANGE THEIR MONEY ONE DAY SOON THE DINAR WILL DISAPPEAR SAYS MR JOVANOVIC WHO ONCE DISTRIBUTED WRIGLEY'S GUM THROUGHOUT YUGOSLAVIA BEFORE WAR AND SANCTIONS CHEWED UP HIS MARKET WE'LL BE USING ROCKS CIGARETTES MAYBE EVEN GUM FOR MONEY I GIVE THE DINAR ANOTHER TWO OR THREE MONTHS OH YOU'RE AN OPTIMIST THEN SAYS MR MISOVIC WHO FIGURES SERBS WILL SINK TO BARTER TRADE WITHIN WEEKS OF COURSE ONE DAY THINGS WILL GET BETTER THE QUESTION IS WHEN 9308040012 930804 DR PEPPER/SEVENUP SAYS PRUDENTIAL PLANS TO SELL BLOCK OF STOCK DALLAS DR PEPPER/SEVENUP COS SAID ABOUT 20 OF THE SOFT DRINK MAKER'S COMMON STOCK IS BEING OFFERED FOR SALE BY AN INSURANCE COMPANY THAT HAS BEEN ONE OF DR PEPPER'S BIGGEST BACKERS IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION DR PEPPER SAID PRUDENTIAL INSURANCE COMPANY OF AMERICA PLANS TO SELL ITS 11 MILLION SHARES IN A SECONDARY OFFERING VALUED AT NEARLY 200 MILLION THE PLANNED SALE WHICH INITIALLY RATTLED DR PEPPER'S STOCK PRICE YESTERDAY COMES FIVE YEARS AFTER PRUDENTIAL INVESTED 600 MILLION IN THE THENPRIVATE CONCERN FOR A 49 STAKE PRUDENTIAL LATER SOLD MOST OF ITS DR PEPPER HOLDINGS IN PRIVATE TRANSACTIONS BEFORE THE COMPANY WENT PUBLIC EARLIER THIS YEAR AT 15 A SHARE THE ISSUE CLOSED YESTERDAY AT 1775 DOWN 75 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING A PRUDENTIAL SPOKESWOMAN SAID THE INSURANCE COMPANY ROUTINELY SELLS ITS INVESTMENTS AFTER FIVE YEARS SHE SAID THE SALE SHOULDN'T BE INTERPRETED AS A SIGN OF DOUBT ABOUT DR PEPPER'S PROSPECTS THIS IS GENERALLY WHAT WE DO SHE SAID WE'RE SELLING IT NOW BECAUSE WE THINK IT'S A GOOD TIME TO DO THAT A DR PEPPER SPOKESMAN SAID THE COMPANY KNOWS OF NO OTHER MAJOR SHAREHOLDERS PLANNING TO SELL LARGE BLOCKS OF STOCK OF THE 11 MILLION SHARES TO BE OFFERED 88 MILLION ARE INITIALLY BEING OFFERED IN THE US AND CANADA AND 22 MILLION SHARES ARE BEING OFFERED OUTSIDE THOSE COUNTRIES DR PEPPER WHICH CURRENTLY HAS 602 MILLION COMMON SHARES OUTSTANDING SAID NONE OF THE PROCEEDS FROM THE OFFERING WILL GO TO THE COMPANY THE OFFERING IS BEING LED BY PRUDENTIAL SECURITIES INC AND COMANAGED BY BT SECURITIES CORP DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND PAINEWEBBER INC 9308040011 930804 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BANK OF NEW HAMPSHIRE CORP AN OFFERING OF 600000 COMMON SHARES AND UP TO AN ADDITIONAL 90000 SHARES TO COVER OVERALLOTMENTS IF ANY VIA KEEFE BRUYETTE & WOODS INC FOREST OIL CORP AN OFFERING OF 100 MILLION IN SENIOR SUBORDINATED NOTES DUE 2003 VIA LEHMAN BROTHERS SALOMON BROTHERS INC BT SECURITIES CORP AND CHASE SECURITIES INC GREAT PINES WATER CO AN INITIAL OFFERING OF 500000 COMMON SHARES VIA TEXAS CAPITAL SECURITIES OF HOUSTON 9308040010 930804 INTERNATIONAL ELF AQUITAINE FRENCH GAS UTILITY GET NEW CHAIRMEN BY CHARLES FLEMING STAFF REPORTER OF THE WALL STREET JOURNAL PARIS FRANCE'S TRADITIONAL PRESIDENTS' WALTZ WHICH INVOLVES A COMPLEX RESHUFFLE OF CHAIRMEN AT STATECONTROLLED COMPANIES AS A NEWLY ELECTED GOVERNMENT FINDS POSITIONS FOR ITS ALLIES FINALLY GETS UNDER WAY THIS WEEK WITH THE NOMINATION OF NEW CHAIRMEN FOR TWO STATE ENERGY GROUPS SOCIETE NATIONALE ELF AQUITAINE AND GAZ DE FRANCE PHILIPPE JAFFRE 48 YEARS OLD WILL HEAD PETROLEUM GIANT ELF FRANCE'S LARGEST QUOTED COMPANY MR JAFFRE HAS MANAGED CREDIT AGRICOLE FRANCE'S LARGEST BANK SINCE 1989 HIS SUCCESSOR HASN'T BEEN CHOSEN MR JAFFRE'S APPOINTMENT TO ELF IS DUE TO BE CONFIRMED BY THE GOVERNMENT TODAY SOME ANALYSTS SEE THE MOVE AS ANOTHER SIGN OF THE GOVERNMENT'S INTENTION TO KEEP A FINGER ON THE RUNNING OF THE OIL COMPANY EVEN AFTER IT IS DENATIONALIZED THIS YEAR OR EARLY NEXT YEAR GOVERNMENT MINISTERS ALREADY HAVE CONFIRMED THAT THE STATE WILL RETAIN A GOLDEN SHARE IN ELF'S CAPITAL ALLOWING IT TO BLOCK ANY ATTEMPTED TAKEOVER NO DETAILS HAVE YET BEEN RELEASED ABOUT HOW THE GOLDEN SHARE WILL WORK MR JAFFRE WILL SUCCEED LOIK LE FLOCHPRIGENT WHO ALTHOUGH CREDITED WITH BUILDING ELF'S INTERNATIONAL OPERATIONS AND BOOSTING PROFITABILITY IS TAINTED IN THE EYES OF THE NEW RIGHTWING GOVERNMENT BECAUSE HE IS A CLOSE ALLY OF SOCIALIST PRESIDENT FRANCOIS MITTERRAND AS PART OF THE SHUFFLE MR LE FLOCHPRIGENT HAS BEEN NAMED TO HEAD STATECONTROLLED GAS UTILITY GAZ DE FRANCE THERE ARE NO PLANS YET TO PRIVATIZE THE GAS UTILITY ACCORDING TO FRENCH NEWS REPORTS MR LE FLOCHPRIGENT'S ARRIVAL WILL PROMPT THE GOVERNMENT TO STEER THE CURRENT GAZ DE FRANCE CHAIRMAN FRANCIS GUTMAN ON TO THE FRENCH PETROLEUM INSTITUTE IT WASN'T CLEAR WHERE THE INSTITUTE'S CURRENT CHAIRMAN FRANCOIS LAGRANGE WOULD GO 9308040009 930804 AT&T SAYS COURT RULES IT MAY PROVIDE GOVERNMENT SERVICES NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID A FEDERAL APPEALS COURT RULED IT COULD PROVIDE CERTAIN VOICE DATA AND VIDEO SERVICES TO THE GOVERNMENT UNDER A BROAD MULTIBILLIONDOLLAR CONTRACT AT&T PLANNED TO UPGRADE THE GOVERNMENT NETWORK BY INSTALLING ITS T3 SERVICE WHICH TRANSMITS VOICE DATA AND VIDEO IMAGES ABOUT 30 TIMES FASTER AND AT LESS COST THAN SIMILAR TECHNOLOGIES BUT THE PLAN WAS THWARTED WHEN THE GSA'S BOARD OF CONTRACT APPEALS UPHELD A CHARGE BY MCI COMMUNICATIONS CORP AND WILTEL INC ALLEGING THAT THE T3 SERVICE FELL OUTSIDE THE SCOPE OF THE CONTRACT WILTEL IS A UNIT OF WILLIAMS COS THE RULING WOULD EFFECTIVELY HAVE ALLOWED MCI AND WILTEL TO COMPETE IN PROVIDING SUCH SERVICES TO GOVERNMENT AGENCIES ACCORDING TO AT&T YESTERDAY THE US COURT OF APPEALS IN WASHINGTON REVERSED THAT DECISION FINDING THAT THE T3 SYSTEM WAS WITHIN THE SCOPE OF THE FTS 2000 CONTRACT MCI SAID IT WAS REVIEWING THE COURT'S DECISION BUT HAD NO ADDITIONAL COMMENT SO FAR THE DEPARTMENT OF ENERGY THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION AND THE ENVIRONMENTAL PROTECTION AGENCY HAVE BEEN USING THE T3 SERVICE AND AT&T WILL NOW BEGIN SELLING THE SERVICE TO OTHER GOVERNMENT AGENCIES AT&T SAID A SPOKESWOMAN FOR SPRINT SAID THE COMPANY PLANS TO OFFER THE SAME SERVICE AS AT&T'S T3 IN THE NEAR FUTURE 9308040008 930804 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LE SS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9308040007 930803 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 9308040006 930804 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 3/4 LOW 2 3/4 NEAR CLOSING BID 2 7/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 59 DAYS 312 60 TO 89 DAYS 316 90 TO 119 DAYS 317 120 TO 154 DAYS 330 155 TO 179 DAYS 332 180 TO 239 DAYS 340 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 316 30 DAYS 319 60 DAYS 322 90 DAYS CERTIFICATES OF DEPOSIT 2 265 TWO MONTHS 272 THREE MONTHS 293 SIX MONTHS 318 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 305 ONE MONTH 311 THREE MONTHS 330 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 305 60 DAYS 307 90 DAYS 311 120 DAYS 321 150 DAYS 323 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 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 673 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 702 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 699 60 DAYS 709 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 9308040005 930804 INDUSTRY FOCUS NATION'S RETAILERS ASK VENDORS TO HELP SHARE EXPENSES GROWING PRACTICE IS AIMED AT FATTENING UP SLIM PROFIT MARGINS BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL IF YOUR BUSINESS PARTNER WERE WILLING WITH A LITTLE ARMTWISTING TO ASSUME SOME OF YOUR EXPENSES WOULDN'T YOU ASK HIM TO DO SO WITH THE ECONOMY STILL WEAK THE QUESTION ISN'T ACADEMIC MORE AND MORE US RETAILERS THEIR ALREADY THIN PROFIT MARGINS UNDER INTENSE PRESSURE ARE ASKING THEIR SUPPLIERS TO DO JUST THAT EVERYONE'S A SQUEEZE MASTER' ASSERTS CRAIG KALTER VICE PRESIDENT MARKETING FOR LOLLY TOGS LTD WHICH MAKES CHILDREN'S WEAR UNDER THE FRENCH TOAST BRAND NAME FROM DEPARTMENT STORES TO DISCOUNTERS TO SPECIALTY BOUTIQUES RETAILERS ARE TRYING TO FOB OFF THE COST OF MERCHANDISE WHILE IT MOVES TO STORE SHELVES ONTO THEIR MYRIAD SUPPLIERS WITH PRETTY GOOD FREQUENCY ACROSS THE BOARD SAYS MR KALTER INDEED SOME OF KMART CORP'S TOY VENDORS DISCLOSED LAST WEEK THAT THE BIG DISCOUNTER IS ASKING THEM TO SELL THEIR GOODS ON CONSIGNMENT THAT MEANS TROY MICHBASED KMART WOULDN'T PAY FOR THE GOODS UNTIL THEY APPEARED IN STORES THE TOY VENDORS MEANWHILE WOULD HAVE TO KEEP THE INVENTORY ON THEIR BOOKS EVEN WHILE IT SAT IN KMART'S DISTRIBUTION CENTERS AND RISK WRITING OFF GOODS THAT DON'T SELL TYPICALLY THE RETAILER PAYS FOR THE GOODS AS SOON AS THE ORDERS ARRIVE AT THE SHIPPING CENTER SOME OF KMART'S TOY SUPPLIERS LAST WEEK DISMISSED THE IDEA AS RIDICULOUS BUT A KMART SPOKESWOMAN SAID AT LEAST ONE VENDOR AGREED TO THE NEW ARRANGEMENT RETAIL EXPERTS AGREE THAT KMART'S APPROACH IS AN EXTREME EXAMPLE OF PRESSURING VENDORS BUT THEY ALSO SAY IT MAY BE A SIGN OF THINGS TO COME THIS IS JUST A BREACH ON THE WALL SAYS KURT BARNARD PUBLISHER OF RETAIL MARKETING REPORT A NEW YORK NEWSLETTER WITH LOWERTHANEXPECTED MONTHLY SALES SLIDING PROFITS AND GRIM PROSPECTS FOR THE IMPORTANT CHRISTMAS SEASON US RETAILERS INCREASINGLY ARE RELYING ON COSTCONTROL EFFORTS TO HELP THEIR FINANCIAL RESULTS YOU FIND THESE THINGS ERUPTING TO A CLIMAX WHEN CONSUMER SPENDING WEAKENS SAYS MR BARNARD RETAILERS KICK INTO SURVIVAL MODE RETAILERS AND VENDORS ALWAYS HAVE BEEN STRANGE BEDFELLOWS WHILE THEY NEED EACH OTHER RETAILERS HISTORICALLY HAVE STRAINED THE RELATIONSHIP BY ASKING VENDORS TO PAY FOR THINGS THAT TYPICALLY AREN'T SUPPLIERS' RESPONSIBILITIES THEY INCLUDE ADVERTISING BUILDING STORE DISPLAYS OR PAYING SPECIAL OVERRIDE COMMISSIONS TO SALES CLERKS WHO HAWK THEIR MERCHANDISE THE BULLYING HAS WORSENED IN RECENT YEARS AS COSTCUTTING HAS BECOME UBIQUITOUS DISCOUNTERS DOMINANT AND CONSUMER EXPECTATIONS GEARED TOWARD DEALS VENDORS ARE BEING WHIPSAWED AND SELDOM CAN FIGHT RETAILERS' INITIATIVES THE FALLOUT IS THAT SUPPLIERS WHO OFTEN CAN'T AFFORD TO TURN DOWN A BIG RETAILER'S REQUEST OR RISK LOSING AN IMPORTANT CUSTOMER FIND THEIR ALREADY FALTERING PROFIT MARGINS ERODING EVEN MORE SAYS PETER GABBE CHAIRMAN OF THE AMERICAN APPAREL MANUFACTURING ASSOCIATION'S MARKETING COMMITTEE WHICH OVERSEES SKIRMISHES BETWEEN RETAILERS AND APPAREL VENDORS AS A RESULT SMALL SUPPLIERS SOMETIMES ARE FORCED TO CLOSE THEIR FACTORIES AND MANY VENDORS MUST BUILD THE EXTRA EXPENSES INTO THE COST OF THEIR PRODUCTS THAT IN TURN MEANS THE CONSUMER EITHER HAS LESS CHOICE OF PRODUCT OR MUST PAY MORE FOR IT SAYS MR GABBE BUT SOME VENDORS ACKNOWLEDGE THAT RETAILERS REALLY HAVE NO OTHER ALTERNATIVE IF THEY NEED TO CLAMP DOWN ON EXPENSES SKYWAY LUGGAGE CO A SEATTLE MANUFACTURER BALKED RECENTLY WHEN ASKED TO PAY FOR A RETAILER'S ADVERTISEMENT THAT WAS TO FEATURE SKYWAY GOODS THE RETAILER SNAPPED BACK FINE WE WON'T RUN IT THEN SAYS HENRY L KOTKINS JR SKYWAY'S PRESIDENT STILL HE SAYS I'M NOT BEING CRITICAL OF THE RETAILER IF YOU CAN'T RAISE YOUR PRICES WHAT ELSE CAN YOU DO TOM COLE FEDERATED DEPARTMENT STORES INC'S MERCHANDISING PRESIDENT ARGUES THAT WHILE ITS VENDORS MAY HAVE TO TAKE A HIT TO ACCOMMODATE THE RETAILER'S REQUESTS THEY EVENTUALLY WILL BENEFIT FOR INSTANCE HE SAYS FEDERATED IS ASKING SOME APPAREL SUPPLIERS TO UPGRADE THE QUALITY OF HANGERS ON WHICH THEY SHIP CLOTHES SO FEDERATED WON'T HAVE TO TAKE THE TIME AND MONEY TO CHANGE HANGERS WHEN IT DISPLAYS THE CLOTHES IN STORES IF IT COSTS ME A DIME TO DO WHAT THEY CAN DO FOR A NICKEL THEN WHICH MAKES MORE SENSE MR COLE SAYS BECAUSE OF THAT TIMESAVING MOVE MR COLE SAYS THE CLOTHES WILL HIT THE STORES THREE OR FOUR DAYS SOONER WHICH IS BETTER FOR THE SUPPLIER IN THE END AND WHILE THE SUPPLIER MAY BUILD THAT EXTRA COST INTO THE PRODUCT THE CONSUMER STILL BENEFITS BECAUSE OTHER COSTS ALONG THE PIPELINE HAVE BEEN PHASED OUT HE SAYS WHEN SALES ARE SLUGGISH MR COLE SAYS EVERYBODY HAS TO LOOK FOR THE EASIEST AND CHEAPEST WAY TO SPEED CLOTHES TO THE FLOOR HE ADDS YOU CAN LOOK FOR FEDERATED TO TAKE MORE INITIATIVE IN THIS AREA IN 1994 TO HELP COVER PRODUCTION COSTS SHARPER IMAGE CORP SAYS IT IS NOW ASKING ITS CATALOG SUPPLIERS TO PAY A MONTHLY 750 FEE PER PRODUCT THE FIRST TIME THE PRODUCT APPEARS IN PRINT AND A 250 FEE EACH TIME AFTER THAT IT MAKES SO MUCH MORE SENSE TO NEGOTIATE WITH SUPPLIERS IN THIS TOUGH ECONOMY SAYS RICHARD THALHEIMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE SAN FRANCISCOBASED SPECIALITY RETAILER IN RECENT YEARS SHARPER IMAGER HAS ALSO ASKED FOR SOCALLED GUARANTEED SALE RIGHTS FROM SOME SUPPLIERS MEANING THE SUPPLIERS MUST TAKE BACK PRODUCTS THAT DON'T SELL PEOPLE WOULD HAVE LAUGHED AT YOU FOUR YEARS AGO IF YOU HAD ASKED FOR A GUARANTEED SALE SAYS MR THALHEIMER SHARPER IMAGE SUPPLIERS WEREN'T IMMEDIATELY AVAILABLE FOR COMMENT SOME JEWELRY SUPPLIERS WHICH SEVERAL YEARS AGO WERE FORCED BY RETAILERS TO SELL ON CONSIGNMENT HAVE BEEN MORE RESPONSIVE TO RETAILERS' DILEMMAS PETER BRAMS OWNER OF A NEW YORK JEWELRY DESIGN CONCERN THAT BEARS HIS NAME SAYS HE'S AUTOMATED MUCH OF THE COMPANY'S MANUFACTURING FUNCTIONS HE ALSO URGES THE RETAILERS TO TEST CERTAIN ITEMS BEFORE THEY BUY IN BULK THAT WAY MR BRAMS SAYS HE ISN'T STUCK WITH EXCESS MERCHANDISE ONE NEW YORK APPAREL VENDOR SAYS HIS FELLOW SUPPLIERS NO LONGER GUARD TRADE SECRETS NOW THEY SHARE STRATEGIES ON HOW TO COPE WITH RETAILERS' DEMANDS FOR INSTANCE A RETAILER SOMETIMES WILL CONVENIENTLY SNATCH AN INVOICE OFF A PACKAGE OF GOODS AND THEN TELL THE VENDOR THAT IT'S MISSING AS PUNISHMENT THE VENDOR MUST PAY BACK A CERTAIN PERCENTAGE OF THE TOTAL COST OF GOODS ON THAT INVOICE AFTER A TIP FROM A COMPETING SUPPLIER THE APPAREL VENDOR SAYS HE INSTALLED A CAMERA THAT FILMS EACH PACKAGE INVOICE INTACT LEAVING HIS WAREHOUSES WHEN THE MORE OBNOXIOUS RETAILERS THEN TRY TO CLAIM A MISSING INVOICE HE SENDS A PHOTOGRAPH BACK ALONG WITH A LOVE NOTE AS A RESULT OF THIS TACTIC HE SAYS THERE'S NO LONGER A PROBLEM 9308040004 930804 UPLIFTING SPORT GAZING AT BALLOONS WITH EVERYONE' BY THOMAS D MURRAY MIDDLETOWN OHIO MANY TIMES SINCE LAST SUMMER I HAVE FOUND MYSELF TELLING FRIENDS WHO LIVE ELSEWHERE ABOUT THE NATIONAL BALLOON CHAMPIONSHIP WHICH IS BEING HELD HERE IN OUR LITTLE TOWN IN SOUTHWESTERN OHIO AGAIN THIS WEEK YET AS I TRY TO CONVEY THE EXCITEMENT TO THEM I CAN SENSE BY THEIR EXPRESSIONS THAT I'M NOT GETTING ACROSS WHAT THE EXPERIENCE IS REALLY LIKE I AM SAYING WORDS LIKE MAGNIFICENT AND BEAUTIFUL AND UNBELIEVABLE YET I AM AN EXPERIENCED ENOUGH ADVERTISING WRITER TO KNOW MY WORDS AREN'T WORKING THAT I HAVEN'T MADE MY FRIENDS UNDERSTAND WHAT THOSE OF US HERE FEEL AS WE STAND IN THE MIDST OF THOSE BEAUTIFUL WINDSHIPS WATCH THEM ASCEND INTO THE MORNING MISTS OR THE LONG SHADOWS OF EARLY EVENING IMAGINING WHAT IT MUST BE LIKE UP THERE WITH A GODLIKE VIEW OF THE COUNTRYSIDE IN ONE OF ITS LOVELIEST SEASONS AND MOST SPECTACULAR TIMES OF DAY WITH EITHER A SUNRISE OR SUNSET WAITING TO BEGIN I WONDER IF MY PROBLEM HERE IS THAT MUCH OF OUR MAGIC IS REALLY HAPPENING ON THE GROUND THAT THE SPIRITLIFTING PHENOMENON OF THE BIG BALLOONS IS GROUNDED IN THE LITTLE BALLOONS AND THE TSHIRTS AND THE SMITH PARK PICNICS AND IN THE PEOPLE SITTING TOGETHER IN THEIR FOLDING CHAIRS ON THE HILLS OVERLOOKING THE AIRPORT IN THE STRANGERS YOU MEET ON TYTUS AVENUE OR IN THE PARKING LOT AT TOWNE MALL AS A HISSING SOUND ALOFT INSPIRES YOU TO EXCHANGE STORIES OF YOUR WEEK UNDER THE BALLOONS MANY OF US TODAY TEND TO DISTRUST THE UNITY OF AMERICA TO PLAY DOWN OR DISCOURAGE A BELIEF IN OUR COMMON GOALS THAT SHOULD COME AS NO SURPRISE WHEN PARTISANSHIP OF EVERY TYPE AND KIND SO DOMINATES OUR NEWS OUR COMMUNICATION SATELLITES TV AND RADIO TRANSMITTERS AND PRINTING PRESSES SEEM TO CHURN OUT SUCH REPORTS NIGHT AND DAY FROM 10 TIMES MORE REPORTERS THAN WE'LL EVER NEED THEY SEEM TO DRAW EVER DARKER DIVIDING LINES BETWEEN US ALL WHETHER WE'RE BLACK OR WHITE RIGHTTOLIFER OR PROCHOICE A BELIEVER IN TAXING THE RICH OR THE POOR IN PRAYING IN SCHOOL OR TAKING SANTA OFF THE TOWN HALL SOME PEOPLE QUESTION SERIOUSLY WHETHER ALL THESE AMERICAN PARTS AND PARCELS COULD EVER AGAIN RALLY AS PEOPLE DID IN 1941 IN A MARVELOUS AND MASSIVE UNIFIED EFFORT THAT STARTING ALMOST FROM SCRATCH SMASHED THE GERMAN AND JAPANESE WAR MACHINES IN LESS THAN FOUR YEARS AND THEY REMAIN UNCONVINCED BY OUR SUCCESS IN THE GULF WAR BELIEVING IT WAS A TINY TINY TRIAL WHIPPED UP BY THE WINDS OF PUBLICITY TO SOUND ARDUOUS MY OWN FEELING IS THAT WE ARE STILL OF ONE PIECE HERE IN AMERICA THAT WHAT WE SHARE AS HUMAN BEINGS WHAT WE FEEL AND SEE AND TOUCH AND HOPE FOR IN COMMON ARE GREATER THAN OUR DIFFERENCES AND IN FAIRNESS I SHOULD ADD THAT NOTHING REMINDS US OF THAT MORE POIGNANTLY THAN THOSE SAME TV SETS AND NEWSPAPERS THAT DRAMATIZE OUR DISAGREEMENTS AS THEY ALSO SHOW US PEOPLE LIKE OURSELVES HIP DEEP IN THE RUINS OF ALL THEY OWN IN THE MIDWEST FLOODING BUT HELPING EACH OTHER AND TALKING ABOUT A BETTER DAY THAT'S GOT TO BE ON THE WAY SOMETHING ELSE MAY HAVE THE SAME EFFECT ON US AND THAT'S GETTING TOGETHER ONCE IN A WHILE WITH EVERYBODY NOT JUST OUR LITTLE COTERIE OF FRIENDS OR MEMBERS OF THE CLUB OR PARISH THERE IS A SPECIAL VALUE IN GATHERING AS OUR GRANDMOTHERS AND GRANDFATHERS DID IN THE DAYS BEFORE TV IN THE PARK OR ON THE VILLAGE GREEN OR AT THE COUNTY FAIR OR WHERE THEY'RE FLYING BALLOONS FOR AS HUMAN BEINGS WE ARE IN MANY MANY WAYS ALL ALIKE NOTHING POINTS THAT OUT MORE CLEARLY THAN HEARING SEEING SHARING THE SAME EXPERIENCES SIDE BY SIDE WITH OTHERS IT IS A GOOD FEELING A REASSURING FEELING AND IT MAY ALSO BE THE REASON I CAN'T SEEM TO EXPRESS THE MAGIC OF THE BALLOONS TO MY FRIENDS I THINK MAYBE YOU HAVE TO BE THERE MR MURRAY LIVES IN MIDDLETOWN OHIO 9308040003 930804 WHO'S NEWS HALEY RESIGNS POSTS AT AMERICAN GENERAL TUERFF IS PROMOTED HOUSTON AMERICAN GENERAL CORP SAID ROY W HALEY HEIR APPARENT TO THE CHAIRMAN AND CHIEF EXECUTIVE HAROLD S HOOK RESIGNED AFTER A BRIEF BUT HIGHPROFILE STAY AT THE COMPANY JAMES R TUERFF 52 YEARS OLD WAS ELECTED PRESIDENT AND A DIRECTOR OF THE INSURANCE CONCERN MR TUERFF WAS FORMERLY PRESIDENT AND CHIEF EXECUTIVE OF AMERICAN GENERAL'S HOME SERVICE LIFE INSURANCE UNITS THE BUSINESS SEGMENT WITH THE BIGGEST EARNINGS MR HALEY 46 JOINED AMERICAN GENERAL IN 1988 HE WAS NAMED PRESIDENT OF A SUBSIDIARY IN 1989 AND PRESIDENT OF THE PARENT CORPORATION IN 1991 IN MARCH HE WAS NAMED TO THE ADDITIONAL POST OF CHIEF OPERATING OFFICER AT THAT TIME MR HOOK SAID HAVING MR HALEY SUCCEED HIM AS CHIEF EXECUTIVE WAS CERTAINLY THE NEXT LOGICAL STEP THE 61YEAROLD MR HOOK ALSO HAD SAID THAT HE PLANNED TO RETIRE LATE NEXT YEAR MR HOOK DIDN'T RETURN CALLS SEEKING COMMENT JAMES S D'AGOSTINO JR EXECUTIVE VICE PRESIDENT FOR ADMINISTRATION SAID THAT IT WAS A BOARD DECISION NOT TO MAKE MR HALEY THE NEXT CHIEF EXECUTIVE AND THAT ONCE HE UNDERSTOOD THAT HE DECIDED TO RESIGN MR D'AGOSTINO WILL SUCCEED MR TUERFF AS PRESIDENT AND CEO OF THE HOME SERVICE LIFE INSURANCE COMPANIES MR HALEY COULDN'T BE REACHED A LETTER HE SENT TO BUSINESS ASSOCIATES GAVE NO REASON FOR HIS RESIGNATION EXCEPT TO SAY THAT PERSONAL ISSUES AND FUTURE EXPECTATIONS WARRANT A CHANGE AT THIS TIME THE LETTER SAID HE PLANS TO SEEK A TOP LEADERSHIP ROLE FOR A MAJOR PUBLIC COMPANY A PERSON CLOSE TO HIM HOWEVER SAID HE WAS LEAVING BECAUSE MR HOOK JUST WASN'T WILLING TO LET GO OF THE COMPANY 9308040002 930804 FOOD LION'S BIG SETTLEMENT WITH US ALLOWS IT TO RETURN TO EXPANSION PLANS BY KEVIN G SALWEN AND GLENN RUFFENACH STAFF REPORTERS OF THE WALL STREET JOURNAL FOOD LION INC'S 162 MILLION SETTLEMENT WITH THE FEDERAL GOVERNMENT PUTS THE COMPANY IN POSITION TO RETURN ITS ATTENTION TO RESTARTING ITS EXPANSION PLANS THE ACCORD ANNOUNCED YESTERDAY WITH THE LABOR DEPARTMENT THE LARGEST IN HISTORY AGAINST A PRIVATE EMPLOYER FOR OVERTIME VIOLATIONS WILL SET ASIDE 132 MILLION IN BACK WAGES FOR AN ESTIMATED 30000 TO 40000 CURRENT AND FORMER EMPLOYEES OF THE SALISBURY NCBASED SUPERMARKET CHAIN THOSE WORKERS ALLEGEDLY WERE FORCED TO WORK OFF THE CLOCK UNDER THE COMPANY'S SYSTEM OF EFFECTIVE SCHEDULING WHICH SETS TIME LIMITS FOR EACH TASK BUT FOOD LION DIDN'T GIVE WORKERS ADEQUATE TIME TO DO THE TASKS THE LABOR DEPARTMENT SAID FORCING THEM TO WORK OVERTIME WITHOUT PAY THE AGENCY ALSO WILL COLLECT 2 MILLION IN CIVIL FINES FOR THE OVERTIME VIOLATIONS AND 1 MILLION MORE FOR CHILDLABOR VIOLATIONS IN CERTAIN ECONOMIC TIMES COMPANIES LOOK FOR WAYS TO CUT THEIR LABOR COSTS SAID MARIA ECHAVESTE THE AGENCY'S WAGE AND HOUR ADMINISTRATOR WE'RE TRYING TO SEND A SIGNAL THAT EVERYONE NEEDS TO PLAY BY THE SAME RULES FOOD LION WHICH WILL POST THE AGREEMENT IN ITS 1045 STORES SETTLED THE CASE TO AVOID LITIGATION AND WILL INVEST OUR DOLLARS IN OUR WORK FORCE SAID PRESIDENT TOM E SMITH HE NOTED THAT THE COMPANY WILL BEGIN TRAINING SESSIONS WITH LABOR DEPARTMENT OFFICIALS TO ENSURE COMPLIANCE WITH LABOR LAWS AND APPOINT AN OMBUDSMAN TO MONITOR OVERTIME ISSUES COMPANY OFFICIALS SAID THE COSTS WILL ADD UP TO ABOUT A PENNY A SHARE OFF EARNINGS GEORGE SALEM THE COMPANY'S WASHINGTON LAWYER SAID THE SETTLEMENT AMOUNTED TO ONLY 05 OF THE COMPANY'S 2 BILLION PAYROLL DURING THE SEVERAL YEARS WHEN THE ALLEGED OFFENSES OCCURRED THE SETTLEMENT MEANS THE COMPANY CAN NOW REFOCUS ON BUILDING NEW STORES AND IMPROVING MARKET SHARE IN THE DECADE ENDED LAST YEAR THE COMPANY OPENED 800 STORES AN AVERAGE OF ONE EVERY FOUR DAYS MAKING IT ONE OF THE FASTESTGROWING CHAINS IN THE COUNTRY IT SET AN AGGRESSIVE EXPANSION PROGRAM WITH A GOAL OF 2000 STORES BY THE END OF THE DECADE BUT A STRING OF SETBACKS INCLUDING TOUGHERTHANEXPECTED COMPETITION IN THE SOUTHWEST FORCED THE COMPANY TO CURTAIL ITS EXPANSION A COMPANY SPOKESMAN SAID FOOD LION WILL OPEN 100 STORES THIS YEAR AND 40 OR 50 NEXT YEAR FOOD LION EARNED 526 MILLION OR 11 CENTS A SHARE IN THE FIRST HALF OF THIS YEAR ON REVENUE OF 341 BILLION THE SETTLEMENT IS A BIG NUMBER BUT RELATIVE TO THEIR EARNINGS BASE IT'S NOT THE STRAW THAT BREAKS THE CAMEL'S BACK SAID LEE WILDER AN ANALYST AT ROBINSON HUMPHREY CO IN ATLANTA THE ACCORD WAS ATTACKED BY UNION OFFICIALS WHO SAID THE BACK PAY LEVY SHOULD HAVE BEEN 100 MILLION NICK CLARK ASSISTANT GENERAL COUNSEL FOR THE UNITED FOOD AND COMMERCIAL WORKERS UNION WHICH FILED THE INITIAL COMPLAINT WITH THE LABOR DEPARTMENT IN 1991 COMPLAINED THAT THE 132 MILLION IN BACK PAY WILL PROVIDE ONLY ABOUT 330 FOR WORKERS INCLUDED IN THE CASE THE UNION HAS BEEN TRYING TO ORGANIZE WORKERS AT THE COMPANY THIS IS FOOD LION'S SECOND RUNIN WITH LABOR DEPARTMENT OFFICIALS IN FOUR YEARS IN 1989 THE COMPANY PAID 300000 TO SETTLE SIMILAR CHARGES OF FORCING EMPLOYEES TO WORK UNPAID OVERTIME BUT THIS ACCORD WILL HAVE MORE BITE AGENCY OFFICIALS SAID BECAUSE THE COMPANY AGREED TO A FEDERAL COURT INJUNCTION PROMISING IT WON'T VIOLATE LABOR LAW IN THE FUTURE IF PROBLEMS OCCUR AGAIN THE AGENCY CAN ASK THE COURTS TO HOLD THE COMPANY IN CONTEMPT FOOD LION FELL 125 CENTS TO 6 A SHARE IN NATIONAL OVERTHECOUNTER TRADING 9308040001 930803 THE TAX AND BUDGET DEBATE THE TENTATIVE TAX COMPROMISE MAJOR PROVISIONS OF PRESIDENT CLINTON'S TAX PROPOSAL THE BILLS THAT PASSED THE HOUSE OF REPRESENTATIVES AND THE SENATE AND THE TENTATIVE HOUSESENATE CONFERENCE COMMITTEE COMPROMISE CLINTON INCREASE MARGINAL RATE TO 36 FOR COUPLES WITH TAXABLE INCOME ABOVE 140000 115000 FOR INDIVIDUALS AND TO 396 FOR COUPLES AND INDIVIDUALS WITH TAXABLE INCOME ABOVE 250000 SENATE INCREASE RATE TO 335 THIS YEAR AND 36 THEREAFTER FOR COUPLES WITH TAXABLE INCOME ABOVE 140000 115000 FOR INDIVIDUALS AND TO 353 THIS YEAR AND 39 THEREAFTER FOR COUPLES AND INDIVIDUALS WITH TAXABLE INCOME ABOVE 250000 COMPROMISE INCREASE MARGINAL RATE TO 36 FOR COUPLES WITH TAXABLE INCOME ABOVE 140000 115000 FOR INDIVIDUALS AND TO 396 FOR COUPLES AND INDIVIDUALS WITH TAXABLE INCOME ABOVE 250000 EFFECTIVE 1/1/93 CLINTON KEEP TOP CAPITALGAINS TAX RATE AT 28 HALVE RATE FOR CERTAIN INVESTMENTS IN SMALL COMPANIES SENATE RAISE CAPITALGAINS TAX RATE TO 308 FOR TAXPAYERS WITH INCOMES ABOVE 250000 NO TAX BREAK FOR INVESTMENTS IN SMALL FIRMS COMPROMISE SAME AS CLINTON CLINTON SUBJECT WAGES AND SELFEMPLOYMENT EARNINGS ABOVE 135000 TO 29 MEDICARE PAYROLL TAX COMPROMISE SUBJECT WAGES AND SELFEMPLOYMENT EARNINGS ABOVE 135000 TO 29 MEDICARE PAYROLL TAX EFFECTIVE 1/1/94 CLINTON TAX 85 INSTEAD OF THE CURRENT 50 OF BENEFITS PAID TO COUPLES WITH INCOME ABOVE 32000 AND INDIVIDUALS WITH INCOME ABOVE 25000 SENATE TAX 85 OF BENEFITS PAID TO COUPLES WITH INCOME ABOVE 40000 AND INDIVIDUALS WITH INCOME ABOVE 32000 CLINTON IMPOSE BROAD ENERGY TAX WITH SURCHARGE ON PETROLEUM PRODUCTS TO RAISE 70 BILLION OVER FIVE YEARS BEGINNING 7/1/94 WOULD BE 75 CENTS A GALLON ON GASOLINE HOUSE IMPOSE BROAD ENERGY TAX WITH SURCHARGE ON PETROLEUM PRODUCTS BEGINNING 7/1/94 APPLY TO IMPORTS OF ENERGYINTENSIVE PRODUCTS WOULD BE 76 CENTS A GALLON ON GASOLINE COMPROMISE NO BROAD ENERGY TAX INCREASE TAX ON GASOLINE DIESEL COMPRESSED NATURAL GAS AND NONCOMMERCIAL AVIATION FUEL BY 43 CENTS A GALLON EFFECTIVE 10/1/93 CLINTON INCREASE TOP CORPORATE TAX RATE TO 36 FROM 34 LIGHTEN ALTERNATIVE MINIMUM TAX HOUSE INCREASE TO 35 LIGHTEN ALTERNATIVE MINIMUM TAX AS CLINTON PROPOSED SENATE INCREASE TO 35 LIGHTEN ALTERNATIVE MINIMUM TAX LESS THAN CLINTON PROPOSED COMPROMISE INCREASE TO 35 EFFECTIVE 1/1/93 LIGHTEN ALTERNATIVE MINIMUM TAX LESS THAN CLINTON PROPOSED CLINTON CREATE INVESTMENT TAX CREDIT TEMPORARY FOR BIG FIRMS PERMANENT FOR SMALL FIRMS HOUSE NO INVESTMENT TAX CREDIT ALLOW SMALL BUSINESSES TO WRITE OFF 25000 IN EQUIPMENT PURCHASES UP FROM CURRENT 10000 SENATE NO INVESTMENT TAX CREDIT ALLOW SMALL BUSINESSES TO WRITE OFF 20500 IN EQUIPMENT PURCHASES COMPROMISE NO INVESTMENT TAX CREDIT ALLOW SMALL BUSINESSES TO WRITE OFF 17500 IN EQUIPMENT PURCHASES EFFECTIVE 1/1/93 CLINTON DENY DEDUCTIONS FOR CLUB DUES SPOUSES' TRAVEL LOBBYING AND WITH EXCEPTIONS EXECUTIVE PAY OVER 1 MILLION SENATE SAME BUT TOUGHER RULES FOR LOBBYING DEDUCTIONS COMPROMISE DENY DEDUCTIONS FOR CLUB DUES SPOUSES' TRAVEL LOBBYING AND WITH EXCEPTIONS EXECUTIVE PAY OVER 1 MILLION EFFECTIVE 1/1/94 CLINTON ALLOW DEDUCTION OF 50 INSTEAD OF CURRENT 80 OF BUSINESS MEALS AND ENTERTAINMENT CLINTON LIMIT TAX CREDIT TO 60 OF WAGES PAID SENATE LIMIT TAX CREDIT GIVING FIRMS A CHOICE BETWEEN USING A FORMULA REFLECTING INVESTMENT AND WAGES OR SIMPLY CLAIMING 60 OF THE CREDIT'S CURRENT VALUE WITH THAT PHASED DOWN TO 40 IN 1998 EFFECTIVE 1/1/94 COMPROMISE LIMIT TAX CREDIT GIVING FIRMS A CHOICE BETWEEN USING A FORMULA REFLECTING INVESTMENT AND WAGES OR SIMPLY CLAIMING 60 OF THE CREDIT'S CURRENT VALUE WITH THAT PHASED DOWN TO 40 IN 1998 EFFECTIVE 1/1/94 CLINTON INCREASE TAX ON ROYALTIES FROM ABROAD HOUSE NO PROVISION SENATE NO PROVISION COMPROMISE NO PROVISION CLINTON REQUIRE US FIRMS TO PAY TAXES ON FOREIGN PROFITS BEFORE THEY'RE REPATRIATED IF A SUFFICIENT AMOUNT ISN'T PUT IN ACTIVE INVESTMENTS SENATE REQUIRE FIRMS TO PAY TAXES ON SUCH EARNINGS BUT NOT AS MUCH AS CLINTON PROPOSAL COMPROMISE REQUIRE FIRMS TO PAY TAXES ON SUCH EARNINGS BUT NOT AS MUCH AS CLINTON PROPOSAL EFFECTIVE 10/1/93 CLINTON PROVIDE LIMITED PASSIVE LOSS DEDUCTION FOR REALESTATE PROFESSIONALS EXTEND DEPRECIATION PERIOD FOR COMMERCIAL PROPERTY TO 37 YEARS CURRENT LAW IS 31 YEARS HOUSE PROVIDE MORE GENEROUS PASSIVE LOSS DEDUCTION EXTEND DEPRECIATION PERIOD TO 39 YEARS SENATE LIMIT PASSIVE LOSS TO CLINTON PROPOSAL EXTEND DEPRECIATION PERIOD TO 38 YEARS COMPROMISE PROVIDE MORE GENEROUS PASSIVE LOSS DEDUCTION EXTEND DEPRECIATION PERIOD TO 39 YEARS CLINTON NO PROVISION CURRENT LAW GENERALLY PROHIBITS DEPRECIATION OF GOODWILL AND SOME OTHER INTANGIBLE ASSETS HOUSE ALLOW 14YEAR DEPRECIATION OF GOODWILL AND CERTAIN OTHER INTANGIBLE ASSETS ACQUIRED IN TAKEOVERS SENATE ALLOW 14YEAR DEPRECIATION OF 75 OF VALUE OF SUCH ASSETS WITH SPECIAL PROVISIONS FOR SPORTS MOVIE SOFTWARE AND SECONDARY MORTGAGE INDUSTRIES COMPROMISE ALLOW 15YEAR DEPRECIATION OF GOODWILL AND CERTAIN OTHER INTANGIBLE ASSETS WITH SHORTER WRITEOFF PERIODS FOR PURCHASED MORTGAGE SERVICING RIGHTS SPORTS FRANCHISES MOVIE AND BOOK RIGHTS AND SOME SOFTWARE EFFECTIVE ON DATE OF ENACTMENT CLINTON NO PROVISION HOUSE REPEAL TAX ON BOATS AIRCRAFT JEWELRY AND FURS SENATE SAME AS HOUSE COMPROMISE REPEAL TAX ON BOATS AIRCRAFT JEWELRY AND FURS EFFECTIVE 1/1/93 CLINTON NO PROVISION HOUSE NO PROVISION SENATE END FAVORABLE TAX TREATMENT FOR BANKRUPT FIRMS THAT GIVE CREDITORS STOCK FOR DEBT EFFECTIVE 6/17/93 COMPROMISE END FAVORABLE TAX TREATMENT FOR BANKRUPT FIRMS THAT GIVE CREDITORS STOCK FOR DEBT EFFECTIVE 1/1/95 CLINTON MAKE MORE GENEROUS BY 286 BILLION OVER FIVE YEARS MAKE AVAILABLE TO WORKING POOR WITHOUT CHILDREN SENATE MAKE MORE GENEROUS BY ONLY 182 BILLION OVER FIVE YEARS EXCLUDE WORKING POOR WITHOUT CHILDREN COMPROMISE MAKE MORE GENEROUS BY 208 BILLION OVER FIVE YEARS MAKE AVAILABLE TO WORKING POOR WITHOUT CHILDREN CLINTON DESIGNATE 10 EMPOWERMENT ZONES WITH SEVERAL TAX INCENTIVES AND 100 MORE ENTERPRISE COMMUNITIES WITH FEWER TAX BREAKS SENATE NO PROVISION COMPROMISE DESIGNATE NINE EMPOWERMENT ZONES WITH SEVERAL TAX INCENTIVES AND 100 MORE ENTERPRISE COMMUNITIES WITH FEWER TAX BREAKS 9308040103 930719 JUMPING THE TRACK HOW FIRST BOSTON LOST CAPITAL MORALE AND MANY KEY PLAYERS FURIOUS PRESIDENT COX QUITS AFTER ZURICH SHOWDOWN REORGANIZATION PLANNED MUTINY OVER COMPENSATION BY MICHAEL SICONOLFI AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK A DINNER IN A TRANQUIL ENCLAVE ON THE EAST SIDE OF MANHATTAN EARLIER THIS YEAR SHOWED HOW FAR THE INVESTMENT BANKERS AT FIRST BOSTON CORP HAVE COME FROM THE DAYS WHEN THEY SWAGGERED THROUGH THE BIGGEST TAKEOVERS OF THE 1980S IN A MERGER JUGGERNAUT LED BY BRUCE WASSERSTEIN FIRST BOSTON EXECUTIVES HAD ARRANGED THE DINNER TO HEAR THE GRIEVANCES OF THE NEW YORK UNIT'S TOP INVESTMENT BANKERS FOLLOWING THE MARCH 4 ANNOUNCEMENT THAT FOUR KEY PLAYERS HAD JUST QUIT TO JOIN MERRILL LYNCH & CO OVER POACHED SALMON AT THE LINKS CLUB WHOSE GOLFING MOTIF RECALLS THE EISENHOWER ERA THE BANKERS TOOK TURNS HURLING COMPLAINTS AT JOHN M HENNESSY CHIEF EXECUTIVE OF CS FIRST BOSTON GROUP INC YOU'RE OUT OF TOUCH JACK SAID ONE THIS ISN'T WORKING YOU CAN'T KEEP PEOPLE SAID ANOTHER YOU JUST DON'T GET IT ONE BANKER PRESENT SAID THE DINNER WAS LIKE A MUTINY WITH MANY COMPLAINING ABOUT LAST YEAR'S PAY THEY ESTIMATED IT WAS AT LEAST 25 BELOW THE COMPETITION'S TRIGGERING THE DEPARTURE OF DOZENS OF KEY BANKERS EVEN ARCHIBALD COX JR PRESIDENT OF THE FIRM'S US UNIT SEEMED TO ENDORSE THE COMPLAINTS EDGING AWAY FROM MR HENNESSY BY MOVING HIS CHAIR REMAINING SILENT AND ONCE DIRECTLY COUNTERING HIS BOSS SAID BANKERS IN ATTENDANCE WILLIAM REID HEAD OF THE HIGHYIELD BOND DEPARTMENT SAID IT WOULD HAVE TAKEN ONLY 30 MILLION IN EXTRA PAY TO SATISFY MOST KEY BANKERS MR HENNESSY ARGUED IT WOULD HAVE REQUIRED 100 MILLION MR COX BACKED MR REID SAYING 30 MILLION WAS RIGHT AFTER THE MEETING MR HENNESSY COMPLAINED BITTERLY TO MR COX ABOUT BEING UNSUPPORTIVE AND MR COX REBUKED MR HENNESSY FOR NOT BEING MORE RESPONSIVE TO THE EMPLOYEES FIRST BOSTON EXECUTIVES SAID LAST TUESDAY THE STRAINS IN FIRST BOSTON'S MANAGEMENT RANKS REACHED THE BREAKING POINT WHEN MR COX RESIGNED RATHER THAN FACE A LOSS OF AUTHORITY IN A PENDING REORGANIZATION BY PARENT CS FIRST BOSTON GROUP WHICH IS 66 OWNED BY SWISSBASED CS HOLDING ALSO PARENT TO CREDIT SUISSE BANK THE LEADERSHIP CRISIS SHOWS HOW DIFFICULT IT IS FOR ANY WALL STREET FIRM TO MANAGE THE ALLOCATION OF RESOURCES FROM ONE AREA TO ANOTHER AS MARKETS WAX AND WANE THOUGH FIRST BOSTON BECAME A POWERHOUSE IN MERGERS MORTGAGE TRADING AND EUROBONDS IN THE 1980S IT DIDN'T INVEST HEAVILY IN AREAS THAT NOW ARE SPEWING OUT PROFITS FOR OTHER FIRMS LIKE CURRENCY TRADING MONEY MANAGEMENT AND FOREIGN STOCKS AND BONDS THE FIRM ALSO HAS SUFFERED FROM AN ORGANIZATION THAT ALLOWED ITS US AND EUROPEAN SECURITIES UNITS TO COMPETE FOR THE SAME UNDERWRITING AND MERGER ASSIGNMENTS BUT THE BIGGEST DRAG ON FIRST BOSTON'S CURRENT PERFORMANCE HAS BEEN ITS LACK OF CAPITAL WHICH WAS CUT SLIGHTLY BY CS HOLDING'S BUYOUT OF THE FIRM IN 1988 AND FAR MORE SUBSTANTIALLY BY LOSSES IN 1990 ON A SERIES OF BRIDGE LOANS TOTALING 11 BILLION THAT COULDN'T BE REFINANCED THE LOANS DESIGNED TO HELP CLIENTS COMPLETE ACQUISITIONS WERE EXTENDED BY THE FIRM'S DEAL MAKERS WHO REMAINED AT FIRST BOSTON AFTER MR WASSERSTEIN AND JOSEPH PERELLA TOOK SOME OF THEIR TOP LIEUTENANTS AND LEFT TO FORM THEIR OWN COMPANY IN 1988 SOME OF THE BANKERS WHO MADE THE LOANS NOW CONCEDE THEY DID SO OUT OF OVEREAGERNESS TO SHOW THEY COULD KEEP DOING DEALS WITHOUT MR WASSERSTEIN LOSSES ON THE LOANS REQUIRED A 300 MILLION BAILOUT IN LATE 1990 BY CS HOLDING WHICH HAD JUST BROUGHT IN MR COX TO REPAIR THE DAMAGE AS A SENIOR INTERNATIONAL EXECUTIVE AT MORGAN STANLEY GROUP INC FOR 23 YEARS MR COX THE 53YEAROLD SON OF FORMER WATERGATE SPECIAL PROSECUTOR ARCHIBALD COX WAS CREDITED WITH LEADING THAT FIRM'S RISE TO UPPER RANKS OF INVESTMENT BANKS IN THE EUROMARKETS MR COX ENDED A BRIEF RETIREMENT THREE YEARS AGO TO COORDINATE CS FIRST BOSTON'S EUROPEAN PACIFIC AND US OPERATIONS IN 1990 HE TOOK OVER DAYTODAY OPERATIONS OF FIRST BOSTON CORP THE US UNIT AND WAS NAMED ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER IN PLACE OF MR HENNESSY WHO CONTINUED AS CS FIRST BOSTON'S PRESIDENT AND CHIEF EXECUTIVE MR COX FOCUSED ON REPAIRING THE DAMAGE FROM THE LOSSES AND BUILDING UP HIS OWN TEAM BANKERS LOYAL TO HIM BECAME KNOWN AS ARCHIE'S PET ROCKS HE REPLACED MANY EXECUTIVES IN THE CAPITALMARKETS AREAS HE KNEW BEST BUT HE CLASHED WITH JAMES MAHER THE MERGER STRATEGIST WHO HAD INHERITED THE WASSERSTEIN DEALMAKING MACHINE AS HEAD OF INVESTMENT BANKING YET SHARED SOME RESPONSIBILITY FOR THE ILLFATED BRIDGE LOANS AT FIRST MR MAHER BECOME A HERO FOR KEEPING THE DEAL MACHINE HUMMING ON HIS 40TH BIRTHDAY HIS DEPARTMENT GAVE HIM A MOCK MOVIE POSTER WITH HIS FACE SUPERIMPOSED ATOP THE MUSCLED TORSO OF SYLVESTER STALLONE AS RAMBO THEY SENT HIM ON A MISSION AND SET HIM UP TO FAIL IT READ BUT THEY FORGOT THEY WERE DEALING WITH BUT AFTER THE BRIDGE LOANS COLLAPSED MORALE SLUMPED AS MANY OF THE SENIOR BANKERS NURSED LOSSES OF MORE THAN 1 MILLION ON FIRST BOSTON STOCK THEY HAD PURCHASED IN THE 1988 BUYOUT THE LOW PAY IN THE YEARS 1990 AND 1991 EVEN FORCED ONE BANKER TO SEEK LOANS FROM FRIENDS AND COLLEAGUES TO KEEP MAKING THE PAYMENTS ON HIS 2 MILLION HOME IN WESTCHESTER ACCORDING TO SEVERAL FORMER FIRST BOSTON BANKERS IT CAME AS LITTLE SURPRISE TO THE INVESTMENT BANKERS THAT THEIR 1990 PAYCHECKS WERE SHARPLY LOWER BUT THEY PROTESTED VEHEMENTLY WHEN THEIR 1991 PAYCHECKS WERE NO BETTER WHEN MR COX VOWED IN APRIL 1992 THAT THEY WOULD RISE FOR THE YEAR MR MAHER QUESTIONED WHETHER THE SWISS WOULD ALLOW THAT BASED ON THE FIRM'S PROJECTED REVENUES AND PROFITS WEARY OF WHAT HE CONSIDERED MR COX'S MICROMANAGING IN HIS DOMAIN MR MAHER RESIGNED IN MID1992 THOUGH HE HAD PROMISED EMPLOYEES HIGHER PAY FOR 1992 MR COX COULDN'T DELIVER BECAUSE THE FIRM'S WORLDWIDE PROFITS HADN'T MET TARGETS SET BY CS HOLDING ALTHOUGH MR COX THREW ABOUT 3 MILLION OF HIS OWN FUNDS INTO THE DISAPPOINTING BONUS POOL HIS CREDIBILITY WAS BADLY DAMAGED LAST MONTH MR COX'S AUTHORITY WAS CURTAILED BY A REORGANIZATION ENABLING FIRST BOSTON TO OPERATE ALONG PRODUCT LINES INSTEAD OF GEOGRAPHY WHICH COULD ENABLE THE FIRM TO CUT COSTS BY ELIMINATING TRIPLICATE BUREAUCRACIES IN THE US EUROPE AND ASIA AND REDUCE INTERNAL COMPETITION MR COX DECIDED TO QUIT AFTER A DINNER THE WEEKEND OF JULY 10 IN ZURICH SWITZERLAND WITH RAINER GUT CHAIRMAN OF CS HOLDING AT WHICH AN ANGRY MR GUT ATTACKED MR COX FOR SUGGESTING THAT FIRST BOSTON EMPLOYEES SHOULD HAVE BEEN PAID MORE IN 1992 ACCORDING TO PEOPLE WHO WERE BRIEFED ON THE MEETING MR GUT SAID HE HAD BEEN GETTING BITS OF INFORMATION OVER THE PAST NINE MONTHS THAT RAISED QUESTIONS ABOUT MR COX'S LOYALTY TO THE SWISS BANK THE SAME ACCOUNTS SAID FOR EXAMPLE MR GUT SAID HE HAD HEARD MR COX HADN'T STRENUOUSLY DEFENDED CREDIT SUISSE WHEN SOME VETERAN FIRST BOSTON MANAGING DIRECTORS RIDICULED THE SWISS FIRM'S COMMITMENT TO THE US SECURITIES UNIT EMPLOYEES WHO WERE BRIEFED ON THE MEETING SAY MR COX FURIOUS THAT HIS INTEGRITY WAS DOUBTED TOLD HIS BOSS IF MY RECORD DOESN'T STAND ON ITS OWN THERE'S NO POINT IN DEFENDING IT HE LATER TOLD ASSOCIATES HE HAD NO CHOICE BUT TO RESIGN MR COX HAS DECLINED TO COMMENT AND A CS HOLDING SPOKESMAN IN ZURICH SAID MR GUT IS ON VACATION AND COULDN'T BE REACHED TO COMMENT FIRST BOSTON OFFICIALS INCLUDING MR HENNESSY ALSO DECLINED TO COMMENT FOR THIS ARTICLE MEANWHILE IN THE WEEKS FOLLOWING THE LINKS CLUB DINNER MR GUT PUT IN AT LEAST TWO APPEARANCES IN NEW YORK TO DEFEND THE 1992 PAY AWARDS AT A PARTNERS' MEETING AT FIRST BOSTON'S NEW YORK HEADQUARTERS AND AT A DINNER HELD FOR SOME OF THE FIRM'S SENIOR STAFFERS FIRST BOSTON HAS SUFFERED THE DEFECTION OF NUMEROUS TALENTED BANKERS WHO MIGHT HAVE BEEN AMONG ITS NEXT GENERATION OF LEADERS FIVE INVESTMENTBANKINGGROUP HEADS HAVE LEFT THIS YEAR INCLUDING HEADS OF MERGERS PROJECT FINANCE HIGHYIELD BONDS ENERGY AND THE HOUSTON OFFICE WORSENING A LEADERSHIP CRISIS EXACERBATED BY PRESSURE FROM CS HOLDING TO MEET PROFIT TARGETS AND CONTROL EXPENSES WE WILL GET OTHER PEOPLE TO REPLACE THOSE WHO HAVE LEFT MR GUT SAID DURING HIS RECENT VISITS TO NEW YORK THERE WILL BE MORE GOOD PEOPLE COMING UP BEHIND THEM AND HE KEPT REMINDING HIS LISTENERS OF THE 1990 BAILOUT I SAVED YOU IN 1990 WHEN THE PROFITABILITY OF THIS FIRM INCREASES THE PAY WILL TOO TO BE SURE FIRST BOSTON REMAINS STRONG IN SEVERAL AREAS LEADING THREE OF THIS YEAR'S BIGGEST STOCK OFFERINGS 201 BILLION FOR CHRYSLER CORP 1 BILLION FOR TENNECO INC AND A 3 BILLION STOCK OFFERING FOR ARGENTINA'S STATEOWNED OIL COMPANY YPF SOCIEDAD ANONIMA IT RANKED FIRST IN 1992 WORLDWIDE MERGER VOLUME BUT SLIPPED TO FIFTH IN THE FIRST HALF OF THIS YEAR THIS YEAR THE CLOSELY HELD FIRM SAYS IT HAD RECORD SIXMONTH PROFITS AMID A WALL STREETWIDE BOOM AND CS FIRST BOSTON HAS CLAWED ITS WAY BACK UP SINCE ITS LOWS OF 1991 MOVING FROM SIXTH TO FOURTH IN UNDERWRITING FEES AND FROM EIGHTH TO FOURTH IN TRADING EXCHANGELISTED STOCKS ACCORDING TO SECURITIES DATA CO AND THOMSON FINANCIAL SERVICES' AUTEX UNIT MR HENNESSY A LONGTIME ASSOCIATE OF MR GUT'S HAD TAKEN A BACK SEAT WHILE MR COX RAN THE FIRM FOR THE PAST TWO YEARS LAST YEAR HE SERVED AS CHIEF NEW YORK FUNDRAISER FOR GEORGE BUSH AND SOME THOUGHT HE WOULD TAKE A JOB IN WASHINGTON BUT WHEN MR BUSH WASN'T REELECTED MR HENNESSY REFOCUSED ON FIRST BOSTON THIS YEAR IT WAS MR HENNESSY WHO TOOK ACTION ON THE DEFECTIONS TO MERRILL LYNCH WHILE SOME FIRST BOSTON BANKERS DERISIVELY REFER TO MERRILL AS THE POST OFFICE FOR ITS HUGE WORK FORCE AND HUMDRUM TRANSACTIONPROCESSING CULTURE THE APPEAL OF MERRILL'S OFFERS WAS UNDENIABLE MERRILL POSTED THE HIGHEST PROFITS ON WALL STREET LAST YEAR THANKS TO ROBUST STOCK AND BOND SALES TO MUTUAL FUNDS AND INDIVIDUAL INVESTORS ONE UPANDCOMING MANAGING DIRECTOR WHO EARNED ABOUT 700000 AT FIRST BOSTON IN 1992 WAS OFFERED ABOUT 15 MILLION BY MERRILL INVESTMENT BANKERS SAY EVENTUALLY HE CHOSE TO REMAIN AFTER RECEIVING A COUNTEROFFER WHEN FIRST BOSTON DECIDED TO FIGHT TO STOP THE EXODUS FOR WHEN THE NUMBER OF BANKERS HIRED BY MERRILL ALONE APPROACHED 30 AN ANGRY MR HENNESSY PHONED MERRILL'S CHAIRMAN DANIEL P TULLY TO SEEK A CEASEFIRE FIRST BOSTON THREATENED TO SUE MERRILL FOR RAIDING ITS PEOPLE AND THE DEFECTORS FOR CONSPIRACY AND FIRST BOSTON BEGAN MAKING COUNTEROFFERS TO THOSE CONSIDERING LEAVING AS ONE AWKWARD RESULT OF THAT THE FIRM NOW HAS THREE COHEADS OF MERGERS IN NEW YORK AND A FOURTH IN CHICAGO AT ONE POINT IN THE MID1980S WORKING AT FIRST BOSTON SEEMED LIKE A DREAM COME TRUE ACCORDING TO ALUMNI NOW THE FIRM'S ABILITY TO RECRUIT NEW EMPLOYEES HAS BEEN DAMAGED BY THE TURMOIL AND TURNOVER SOME JUNIORLEVEL ASSOCIATES SAY THE CONFUSION HAS LEFT THEM UNCLEAR AS TO WHO WILL DECIDE THEIR 1993 BONUS LEAVING THEM UNSURE WHOSE INSTRUCTIONS TO FOLLOW UNLIKE OTHER FIRSTTIER WALL STREET FIRMS CS FIRST BOSTON DOESN'T CONTROL ITS OWN FATE BECAUSE IT IS A SUBSIDIARY LAST YEAR FIRST BOSTON AMOUNTED TO ONLY 12 OF CS HOLDING'S PROFITS INDEED THE FOCUS OF CREDIT SUISSE'S ATTENTION THIS YEAR HAS BEEN A 1 BILLION ACQUISITION OF SWISS VOLKSBANK WHICH CAUSED ITS CREDIT RATING TO BE DOWNGRADED BY MOODY'S INVESTORS SERVICE SOME EUROPEAN ANALYSTS BELIEVE THAT CS HOLDING'S SWISS CULTURE MUST HAVE BEEN VERY IRRITATED BY THE CONSTANT DEMANDS FOR MONEY BY FIRST BOSTON'S DEAL MAKERS AS ONE PUT IT AGREES HANS KAUFMANN HEAD OF SWISS BROKERAGE RESEARCH AT BANK JULIUS BAER IN ZURICH WHO FOLLOWS CS HOLDING I THINK IT'S THE ATTITUDE OF SWISS BANKS THAT SALARIES ARE NOT UNLIMITED THEY DO NOT WANT TO HAVE BALLERINAS IN THEIR GROUP ANOTHER ANALYST NOTED THAT THE SWISS CULTURE IS TO TRY TO BUILD SOMETHING THAT WILL WORK LIKE A MACHINE REGARDLESS OF WHO HOLDS WHAT JOB BECAUSE THE FIRM'S EQUITY CAPITAL OF 861 MILLION AT THE END OF 1992 LAGS BEHIND MERRILL'S 457 BILLION AND MORGAN STANLEY'S 307 BILLION CS FIRST BOSTON CAN'T COMPETE IN THE SAME ARRAY OF TRADING AND OTHER CAPITALINTENSIVE BUSINESSES FOR EXAMPLE WHEN FIRST BOSTON COMPETED FOR A SPOT IN A FUTURE JUMBO SALE OF BRITISH TELECOMMUNICATIONS STOCK ASSIGNMENTS WON BY MORGAN STANLEY AND MERRILL LYNCH THE BRITISH COMPANY POINTED OUT THAT FIRST BOSTON DOESN'T ACTIVELY TRADE BT'S DEPOSITARY SHARES IN THE US NOW THAT FIRST BOSTON IS REORGANIZING AND MAY CUT COSTS SOME BANKERS BELIEVE IT MUST BECOME MORE LIKE A BOUTIQUE FOCUSING ON A FEW AREAS WHERE IT CAN MAKE MONEY AND LESS LIKE A FULLSERVICE FIRM OR IT MAY TURN MORE TO TRADING THE WAY IT HAS IN A DERIVATIVESTRADING JOINT VENTURE WITH CREDIT SUISSE IN THE MEANTIME MR HENNESSY HAS ORDERED UP A MANAGEMENT CONSULTANT'S STUDY OF THE FIRM'S FUTURE SEE RELATED LETTER LETTERS TO THE EDITOR FIRST BOSTON REPLIES TO ONESIDED' ARTICLE WSJ AUG 4 1993 9307190075 YY93 MM08 9308040068 930713 ENTERPRISE BY TIMOTHY L O'BRIEN MORE OWNERS OF HOMEBASED BUSINESSES FIND THEMSELVES FALLING PREY TO SCAMS COMPLAINTS ABOUT RIPOFFS TARGETED AT SUCH ENTREPRENEURS ARE ON THE RISE THE COUNCIL OF BETTER BUSINESS BUREAUS REPORTS SCAM ARTISTS SMELL A GOLDEN OPPORTUNITY THE NUMBER OF PEOPLE RELIANT ON HOMEBASED BUSINESSES JUMPED TO 121 MILLION LAST YEAR FROM 92 MILLION IN 1987 SAYS LINK RESOURCES A NEW YORK MARKETRESEARCH COMPANY WHAT CONCERNS ME IS THE LARGE NUMBER OF SCAM ARTISTS WHO SKIRT THE EDGE BUT DON'T BREAK ANY LAWS SAYS BARBARA BRABEC PUBLISHER OF THE NATIONAL HOME BUSINESS REPORT A NAPERVILLE ILL NEWSLETTER THEY SELL SOMETHING TO THE HOMEBUSINESS PERSON LIKE A KIT OR A CATALOG BUT THESE THINGS ARE USUALLY WORTHLESS ONE COMMON SCHEME SAYS MS BRABEC IS TO SELL KITS FOR PEOPLE TO MAKE BABY BIBS OR PICTURE FRAMES WHEN THE HOME WORKER RETURNS THE FINISHED GOODS HOWEVER THE COMPANY CLAIMS THEY DON'T MEET SPECIFICATIONS AND DOESN'T PAY ANYTHING ANOTHER SCAM INVOLVES SELLING HOMEBASED BUSINESSES YELLOW PAGE ADVERTISEMENTS THOUGH SUCH ADS RUN IN CATALOGS WITH YELLOWCOLORED PAGES THESE DIRECTORIES ARE BOGUS THINLY DISTRIBUTED CLONES OF THEIR WELLKNOWN COUNTERPARTS RYKO TECHNOLOGY A NOVI MICH COMPANY THAT ALSO DOES BUSINESS AS RYKO INTERNATIONAL IN SYLVANIA OHIO HAS COME UNDER THE SCRUTINY OF THE MICHIGAN ATTORNEY GENERAL'S OFFICE AND THE BETTER BUSINESS BUREAU'S NORTHWESTERN OHIO OFFICE IN TOLEDO BOTH AGENCIES ALLEGE THAT RYKO MISLED INVESTORS IN HOMEBASED DISTRIBUTORSHIPS FOR SAFTGRIP WHICH THE COMPANY CALLS A SLIPFREE FLOOR COATING THAT CAN HELP USERS AVOID SLIPANDFALL ACCIDENTS IN MAY RYKO TECHNOLOGY SIGNED A CEASEANDDESIST ORDER WITH THE MICHIGAN ATTORNEY GENERAL'S OFFICE RYKO AGREED TO STOP MISLEADING INVESTORS ABOUT ITS LIABILITY COVERAGE FOR THE FLOOR COATING THE COMPANY ALSO AGREED TO DISCLOSE THAT SAFTGRIP IS MADE BY ANOTHER CONCERN AND TO PROVIDE INVESTORS WITH ALL OF ITS PROMISED TRAINING AND SUPPORT RYKO'S VICE PRESIDENT SCOTT ANDERSON SAYS THE LEGAL ACTION WAS A JOKE MANY PEOPLE ARE MAKING SUBSTANTIAL INCOMES OFF OUR BUSINESS SMALL BUSINESSES TRYING HARDER TO AVOID GETTING STIFFED ARE LEARNING MORE ABOUT THE CREDIT HISTORIES OF THEIR CUSTOMERS WITH MANY SMALL COMPANIES WEAKENED BY THE RECENT RECESSION PROMPT PAYMENT IS BOTH MORE VITAL AND HARDER TO COUNT ON THE NATIONAL ASSOCIATION OF CREDIT MANAGEMENT SAYS DEMAND FOR ITS CREDIT REPORTS JUMPED 25 IN THIS YEAR'S FIRST HALF FROM A YEAR EARLIER THE NONPROFIT GROUP BASED IN COLUMBIA MD OFFERS REPORTS ON MANY SMALL FIRMS OVERLOOKED BY LARGER CREDIT AGENCIES A COMPANY CAN JOIN THE ASSOCIATION FOR AN AVERAGE ANNUAL FEE OF ABOUT 285 THE GROUP HAS 35000 DOMESTIC MEMBER COMPANIES AND REGIONAL OFFICES AROUND THE COUNTRY ITS DATABASE HAS INFORMATION ABOUT 65 MILLION FIRMS CULLED FROM COMPANIES THAT HAVE DONE BUSINESS WITH THEM INDUSTRY TRADE GROUPS AND LARGER CREDIT AGENCIES THE ASSOCIATION'S REPORTS COST MEMBERS 10 TO 20 PER FIRM AND DESCRIBE HOW QUICKLY A CONCERN PAYS ITS BILLS WHETHER IT IS INVOLVED IN ANY LEGAL ACTIONS AND HOW MANY INQUIRIES THE GROUP HAS RECEIVED ABOUT IT BECAUSE THE US IS DIFFERENT FROM REGION TO REGION LOCAL AFFILIATES CAN PROVIDE TAILORED CREDIT INFORMATION APPROPRIATE FOR EACH GEOGRAPHIC ZONE SAYS GORDON STAGGE A FORMER ASSOCIATION CHAIRMAN WHO IS NOW TREASURER OF ALLTRISTA A DIVISION OF JAR MAKER BALL CORP IN MUNCIE IND BIG AGENCIES SUCH AS TRW AND DUN & BRADSTREET ALSO SELL CREDIT INFORMATION ABOUT SMALL BUSINESSES BUT GENERALLY ONLY THOSE THAT OPERATE NATIONALLY OR INTERNATIONALLY AND THUS ARE BIGGER THAN THE REGIONAL CONCERNS TRACKED BY THE ASSOCIATION TRW AND DUN & BRADSTREET SAY THEIR REPORTS INCLUDE PAYMENT HISTORY FINANCIAL DATA AND ANALYSIS COMPANY BACKGROUND AND PUBLIC FILINGS HAVE BIKE WILL TRAVEL ENTREPRENEURS PROFIT BY MAKING CYCLING VACATIONS A GROWING SEGMENT OF THE TRAVEL INDUSTRY INTEREST IN SUCH VACATIONS HAS REALLY TAKEN OFF OVER THE PAST FIVE YEARS AS PART OF THE TREND TOWARD ACTIVE TRAVEL SAYS STEEN HANSEN EDITOR OF SPECIALTY TRAVEL INDEX A GUIDE TO UNIQUE VACATIONS BACKROADS A BERKELEY CALIF COMPANY HAS PEDDLED CYCLE TOURS SINCE 1979 IT PROJECTS SALES OF 13 MILLION THIS YEAR UP FROM 10 MILLION LAST YEAR AND 25 MILLION IN 1988 IT'S BOOMING THIS YEAR BECAUSE PEOPLE ARE VACATIONING AGAIN SAYS SUSAN PARKER BACKROADS' MARKETING MANAGER AND MANY OF OUR CLIENTS ARE WEALTHY ENOUGH NOT TO BE AFFECTED BY THE WEAK ECONOMY SALES AT TRAVENT A WATERBURY CENTER VT COMPANY THAT SPECIALIZES IN CYCLE TOURS DOUBLED TO 5 MILLION LAST YEAR FROM 1987 TO SPUR ITS GROWING SALES TRAVENT ADVERTISES IN NEWSWEEK AS WELL AS IN CYCLING PUBLICATIONS IT'S A GOOD VEHICLE FOR US TO ESTABLISH BRAND RECOGNITION SAYS RAYMOND LEMIRE TRAVENT'S CHIEF OPERATING OFFICER WE FIND THAT THE BIGGEST BARRIER TO ENTRY IN OUR BUSINESS IS THAT PEOPLE DON'T KNOW WE EXIST ABERCROMBIE & KENT INTERNATIONAL A TRAVEL AGENCY IN OAKBROOK ILL HAS OFFERED A VARIETY OF VACATION PACKAGES FOR 30 YEARS BUT NONE WERE GEARED TOWARD BICYLISTS THE FIRM SAYS IT WILL BEGIN OFFERING EIGHT CYCLE TOURS IN EUROPE LATER THIS MONTH DIDN'T WE ALREADY KNOW THAT A 2 1/2YEAR STUDY BY TEMPLE UNIVERSITY CONCLUDES THAT BUSINESSES LOCATED FARTHER FROM BUSY AREAS ARE MORE LIKELY TO BE BURGLARIZED THE REMEDY THEY SHOULD HAVE ALARMS SAYS DR SIMON HAKIM THE STUDY'S COAUTHOR PAINTED SKY LLAMA RANCH SWAN VALLEY LLAMAS AND GREAT NORTHERN LLAMA ALL OFFER LLAMA TOURS IN MONTANA'S SCENIC NORTHWESTERN CORNER LLAMAS ENHANCE THE WHOLE TRIP WITH THEIR PERSONALITY SAYS LARRY EDDY PAINTED SKY'S OWNER SEE RELATED LETTER LETTERS TO THE EDITOR AN ALARMING REPORT ON OFFICE BURGLARIES WSJ AUG 4 1993 9307130175 YY93 MM08 9308030179 930803 TRADERS FIND WAYS TO CAPITALIZE ON CHAOS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL MONEY MANAGER ARTHUR A MICHELETTI TURNED A TIDY PROFIT IN THE PAST FEW DAYS IN EUROPE'S CURRENCY CRISIS ALL WITHOUT A SINGLE BET ON CURRENCIES IN TRANSACTIONS STRETCHING OVER TWO DAYS LAST WEEK MR MICHELETTI OF BAILARD BIEHL & KAISER IN SAN MATEO CALIF SHIFTED 17 MILLION OUT OF GERMAN AND JAPANESE BONDS AND INTO BOND MARKETS IN DENMARK FRANCE ITALY AND SPAIN ESCHEWING RISKY SPECULATION ON HOW CURRENCIES MIGHT MOVE MR MICHELETTI UPPED THE ANTE IN A STRATEGY HE HAD ADOPTED MONTHS AGO THAT INTEREST RATES IN EUROPE WOULD FALL SOONER OR LATER HIS STRATEGY HAS PAID OFF HANDSOMELY AT LEAST SO FAR SINCE THE BUNDESBANK JOLTED FOREIGNEXCHANGE MARKETS THURSDAY BY DECIDING NOT TO LOWER GERMANY'S DISCOUNT RATE MR MICHELETTI HAS MADE NEARLY 4 ON HIS BOND INVESTMENTS WE'RE TALKING ABOUT JUST A COUPLE OF DAYS HERE HE SAYS WHAT WOULD THAT BE OVER A FULL YEAR MR MICHELETTI ISN'T IN THE SAME LEAGUE AS THE HUGE MULTINATIONAL BANKS AND BROKERAGE FIRMS THAT WERE SLINGING AROUND BILLIONS OF DOLLARS AMID THE EUROPEAN MONETARY CRISIS HE IS ONE OF THOUSANDS OF INVESTORS WORLDWIDE WHO CAPITALIZED ON THE CHAOS SAVVY INVESTORS FOUND PROFITS NOT ONLY IN THE VOLATILE CURRENCY MARKETS BUT ALSO IN STOCKS BONDS AND PRECIOUS METALS ALL OF WHICH WERE ENVELOPED BY THE UPHEAVAL TO BE SURE THE BIGGEST GAINS WERE CHALKED UP BY FOREIGNEXCHANGE TRADERS CURRENCY SPECULATORS WHO BET AGAINST THE FRENCH FRANC AND IN FAVOR OF THE GERMAN MARK CAME OUT WINNERS SO DID MORE CAUTIOUS TRADERS WHO SOUGHT A HAVEN IN THE DOLLAR AND THE JAPANESE YEN THE DOLLAR LONG HAS BEEN REGARDED AS A REFUGE IN TIMES OF TURMOIL BUT THE YEN HAS ACHIEVED THAT STATUS ONLY RECENTLY THE MONEY CAME POURING OUT OF EUROPE AND THE US AND INTO THE YEN SAYS SCOTT PARDEE CHAIRMAN OF YAMAICHI INTERNATIONAL AMERICA INC THE RISING CURRENCY CREATED ITS OWN SPECULATIVE FEVER SUGGESTING TO SOME MONEY MANAGERS THAT THE YEN IS A SHAKY HAVEN AT BEST A BET ON THE YEN WORKED BUT WE FIND IT ILLOGICAL TO BUY THE YEN WHEN THE JAPANESE GOVERNMENT ISN'T EVEN IN PLACE SAID JAMES MCGROARTY MANAGING DIRECTOR OF ATHENA GROUP LTD AND THE YEN'S SUDDEN RISE EFFECTIVELY LIMITED JAPANESE TRADERS' ABILITY TO GET IN ON THE ACTION IN EUROPE A RISING CURRENCY MAKES OVERSEAS INVESTMENT LESS VALUABLE AND THERE WAS A FEAR THAT THE YEN'S APPRECIATION WOULD MORE THAN OFFSET PROFITS TO BE MADE IN EUROPEAN MARKETS THE MORE CONSERVATIVE SOBER INVESTOR HESITATES IN GOING ABROAD BECAUSE OF THE STRENGTH OF THE YEN MR PARDEE SAID EUROPEAN BOND MARKETS RALLIED IN THE BELIEF THAT THE EFFECTIVE DISSOLUTION OF THE EXCHANGE RATE MECHANISM WOULD ALLOW INTEREST RATES IN MANY EUROPEAN COUNTRIES MOST NOTABLY FRANCE TO BEGIN DROPPING AS THOSE NATIONS TRY TO SPUR THEIR FLAGGING ECONOMIES AND IF RATES BEGIN FALLING CAN A RECOVERY BE FAR BEHIND STOCK MARKETS IN FRANCE SPAIN DENMARK SWEDEN AND BRITAIN ALL RALLIED IN EXPECTATIONS THAT ECONOMIC GROWTH SOON WOULD BLOSSOM IF RATES BEGIN TO FALL IT USUALLY MEANS THAT THE FINANCIAL CYCLE TURNS VERY POSITIVE FOR A PARTICULAR COUNTRY SAID AC MOORE A STOCK MARKET STRATEGIST AT ARGUS INVESTMENT MANGEMENT GOLD FANS MADE OUT WELL TOO IN THE THREE DAYS OF CRISIS TRADING SINCE THURSDAY GOLD FOR DECEMBER DELIVERY CLIMBED 53 TO A CONTRACT HIGH OF 414 AN OUNCE YESTERDAY BEFORE SETTLING BACK TO CLOSE AT 41020 ON THE NEW YORK COMMODITY EXCHANGE BUT IT'S LESS CLEAR WHETHER GOLD INVESTORS WERE FLOCKING TO THE PRECIOUS METAL AS A HAVEN MUCH AS THEY DID TO THE DOLLAR AND YEN OR BECAUSE THEY BELIEVE THE EXPECTED REBOUND IN EUROPEAN ECONOMIES WILL TOUCH OFF HIGHER INFLATION IN COMING MONTHS NOT THAT IT MATTERS MUCH TO GOLD INVESTORS THE FUNDAMENTALS OF GOLD'S SUPPLY AND DEMAND ARE FAVORABLE FOR HIGHER PRICES SAID MR MOORE IF IT'S GIVEN AN EXCUSE IT'LL GO UP 9308030178 930803 INTERNATIONAL VENEZUELA STRUGGLES AS OIL BOOM FIZZLES REVENUE DECLINES AS SOCIAL DEMANDS KEEP RISING BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL CARACAS VENEZUELA FOR MOST OF LAST MONTH VENEZUELAN FINANCE MINISTER CARLOS RAFAEL SILVA'S PHONE DIDN'T WORK MR SILVA SAYS HE ISN'T SURE WHETHER IT'S BECAUSE OF FAULTY MAINTENANCE OR BECAUSE HIS MINISTRY DIDN'T PAY ITS BILL WHATEVER THE REASON IT SAYS SOMETHING ABOUT THE STATE OF VENEZUELA'S ECONOMY WHICH LIKE MR SILVA HAS BEEN ON HOLD RECENTLY THE CASH CRUNCH AND DETERIORATING PUBLIC SERVICES ARE TWO FACES OF VENEZUELA'S DEEPENING ECONOMIC TROUBLES AS IT SEEKS AN INCREASINGLY ELUSIVE SOLUTION TO A QUESTION THAT HELPED TOPPLE ONE PRESIDENT IS BEFUDDLING ANOTHER AND WILL TEST THE WINNER OF DECEMBER'S PRESIDENTIAL ELECTIONS HOW CAN THE COUNTRY MEET RISING SOCIAL DEMANDS WITH DECLINING OIL REVENUE TEN WEEKS AFTER PRESIDENT CARLOS ANDRES PEREZ WAS SUSPENDED ON CHARGES OF MISUSING 175 MILLION IN SECRET FUNDS VENEZUELA IS IN A PARADOXICAL STATE OF MIND WE'RE IN A POLITICAL UP AND AN ECONOMIC DOWN SAYS OSCAR GARCIA MENDOZA CHAIRMAN OF BANCO VENEZOLANO DE CREDITO ACTING PRESIDENT RAMON J VELASQUEZ'S AVUNCULAR STYLE AND HONESTY HAVE DEFUSED THE SOCIAL TENSIONS THAT FUELED TWO MILITARY COUP ATTEMPTS AGAINST MR PEREZ LAST YEAR DESPITE THREE MYSTERIOUS LETTER BOMBS SENT TO THE SUPREME COURT LAST MONTH ONE OF WHICH EXPLODED BLOWING OFF THE HAND OF A MAIL CLERK AND PERSISTENT RUMORS OF LOCALIZED MILITARY UPRISINGS POLITICAL ANALYSTS SAY A FRESH COUP ATTEMPT IN THE NEAR FUTURE IS UNLIKELY BUT MR VELASQUEZ HAS TRANQUILIZED THE COUNTRY THROUGH INERTIA RATHER THAN ACTION WHILE THAT MEANS HE HASN'T REVERSED MR PEREZ'S UNPOPULAR FREEMARKET REFORMS THAT PUT AN END TO YEARS OF STATE SUBSIDIES FOR NEARLY EVERYTHING IT ALSO MEANS HE HAS DONE NOTHING ABOUT GROWING PROBLEMS VENEZUELA IS TECHNICALLY BROKE SAID ARTURO USLAR PIETRI A WRITER AND ELDER STATESMAN AS HE EMERGED FROM A RECENT MEETING WITH MR VELASQUEZ THE STATE DOESN'T HAVE THE RESOURCES TO FACE ITS GROWING OBLIGATIONS INDEED VENEZUELA TODAY IS CONFRONTING A MAJOR DILEMMA AS ITS OIL WEALTH DECLINES IT ISN'T ABLE TO AFFORD THE GENEROUS WELFARE PROGRAMS IT PUT IN PLACE DURING THE OIL BOOM YEARS BUT CUTTING THEM HAS GENERATED SOCIAL TENSIONS THAT HAVE PUT DEMOCRACY UNDER SIEGE ALTHOUGH IT BOASTS THE WESTERN HEMISPHERE'S BIGGEST OIL RESERVES VENEZUELA'S ECONOMY IS IN A TAILSPIN WITH PUBLIC SPENDING DROPPING BECAUSE OF LOWER OIL REVENUE GROWTH WILL BE ABOUT 2 THIS YEAR A SHARP DROP FROM THE 1991 AND 1992 GROWTH RATES OF 104 AND 73 RESPECTIVELY INFLATION WILL LIKELY RISE TO ABOUT 35 FROM 32 LAST YEAR MAJOR REFORMS SUCH AS PRIVATIZATION ARE STALLED BY THE POLITICAL CLIMATE ALTHOUGH THE GOVERNMENT TALKS OF SELLING THREE ELECTRICITY COMPANIES IN OCTOBER THE RESULT IS A GROWING PUBLIC DEFICIT THAT COULD PROVE POLITICALLY EXPLOSIVE THIS YEAR THE FISCAL DEFICIT WILL BE ABOUT 300 BILLION BOLIVARES 32 BILLION OR ABOUT 5 OF GROSS DOMESTIC PRODUCT AND COULD BE EVEN BIGGER IF WE HAVE TO PAY CERTAIN THINGS DEMANDED OF US SAYS MR SILVA THE FINANCE MINISTER EVERY DAY THERE'S A NEW DEMAND THE SITUATION AT CARACAS'S UNIVERSIDAD CENTRAL DE VENEZUELA THE COUNTRY'S BIGGEST PUBLIC UNIVERSITY SHOWS THE PRESSURES FACING THE GOVERNMENT LIKE THE REST OF VENEZUELA'S PUBLIC UNIVERSITIES WHICH PROVIDE FREE EDUCATION UNIVERSIDAD CENTRAL SAYS IT HAS NO MONEY TO START THE NEW SCHOOL YEAR ON SEPT 30 IF WE DON'T HAVE FUNDS THE UNIVERSITY WILL CLOSE SAYS ITS RECTOR SIMON MUNOZ IT'S A REAL POSSIBILITY NOT AN EMPTY THREAT LAST MONTH MR MUNOZ TOOK TO THE STREETS IN AN UNUSUAL JOINT MARCH WITH STUDENTS TO SEEK MONEY FOR THE UNIVERSITIES AT LEAST 33 BILLION BOLIVARES WHERE SHOULD THE MONEY COME FROM MR MUNOZ SUGGESTS RAISING IMPORT DUTIES DECLARING A PARTIAL MORATORIUM ON VENEZUELA'S FOREIGN DEBT AND LEVYING A LUXURY TAX REJECTING THESE DEMANDS AS UNREALISTIC THE GOVERNMENT IS TRYING INSTEAD TO PUSH THROUGH CONGRESS AN EMERGENCY ENABLING LAW TO LET IT GOVERN BY DECREE AND ENFORCE MEASURES LIKE A VALUEADDED TAX AND AN ASSETS TAX ON COMPANIES IT ALSO IS SEEKING TO REFORM THE BANKING AND FINANCIAL SYSTEM TO ALLOW FOREIGN OWNERSHIP OF BANKS AS WELL AS SIMPLIFY PRIVATIZATION RULES SEPARATELY THE GOVERNMENT ALSO IS SEEKING CONGRESSIONAL APPROVAL FOR THREE LONGPLANNED STRATEGIC ALLIANCES BETWEEN STATE OIL COMPANY PETROLEOS DE VENEZUELA SA AND FOREIGN PARTNERS IN THE OIL AND NATURAL GAS FIELDS BUT MANY OF THE MEASURES ARE FACING OPPOSITION OR GETTING BOGGED DOWN IN CONGRESS MOREOVER SAYS ECONOMIST PEDRO PALMA THE FISCAL SITUATION IS SO DIFFICULT THAT IT CAN'T BE SOLVED JUST THROUGH NEW TAXES WE NEED A COMPLETE FISCAL REFORM TO RATIONALIZE SPENDING AND REDUCE THE SIZE OF THE STATE MEANWHILE THE GOVERNMENT IS SHYING AWAY FROM WHAT MANY ECONOMISTS SAY IS AN INDISPENSABLE BUT UNPOPULAR MOVE THAT WOULD BE MUCH SIMPLER RAISING THE PRICE OF GASOLINE GAS IN VENEZUELA IS CHEAPER THAN COCACOLA SAYS BUSINESSMAN GUSTAVO CORONEL AT THE PUMP IT COSTS ABOUT SIX CENTS A LITER VENEZUELANS ARE HIGHLY SENSITIVE TO A GAS PRICE RISE AND MR VELASQUEZ SAID LAST WEEK THERE WOULD BE NO GAS RISES WHILE I'M PRESIDENT TWO CONTENDERS OFFERING RADICALLY DIFFERENT PROGRAMS HAVE A CHANCE OF SUCCEEDING MR VELASQUEZ THE FIRST IS 77YEAROLD RAFAEL CALDERA WHO WAS PRESIDENT FROM 1969 TO 1974 A LONGTIME CHRISTIANDEMOCRAT MR CALDERA LEFT HIS PARTY TO CASH IN ON THE ANTIPOLITICIAN MOOD AND IS RUNNING AS AN INDEPENDENT WITH LEFTWING SUPPORT THOUGH HE IS EXTREMELY VAGUE ON POLICIES HE HAS BEEN A SHARP CRITIC OF FREEMARKET REFORMS AND LACES HIS SPEECHES WITH POPULAR APPEALS TO THE GOOD OLD DAYS HIS MAIN RIVAL IS OSWALDO ALAVAREZ PAZ WHO PLEDGES ALLEGIANCE TO GOD AND THE MARKET MR ALVAREZ PAZ CALLS FOR PRIVATIZATION MODERNIZING THE TAX SYSTEM AND AUSTERITY TO CUT THE DEFICIT WE'LL GET TO DECEMBER WITH THE LAST DROPS IN THE FUEL TANK SAYS A PROMINENT BUSINESSMAN WHOEVER COMES AFTER THAT WILL HAVE TO RAISE GAS PRICES AND SELL STRATEGIC COMPANIES AND DO OTHER THINGS LIKE THAT BECAUSE THERE ARE SIMPLY NO BOLIVARES IN THE TREASURY 9308030177 930803 HORIZON TO PAY ABOUT 85 MILLION TO BUY GREENERY BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL CONTINUING ITS RAPID GROWTH HORIZON HEALTHCARE CORP SAID IT AGREED TO ACQUIRE LONGTROUBLED GREENERY REHABILITATION GROUP INC FOR ABOUT 85 MILLION IN STOCK AND ASSUMED DEBTS BASED IN ALBUQUERQUE NM HORIZON IS A PROVIDER OF LONGTERM CARE IT SAID THE ACQUISITION OF GREENERY'S 20 REHABILITATION FACILITIES IS CONTINGENT UPON HORIZON'S RAISING ABOUT 80 MILLION IN NEW PUBLIC OR PRIVATE FINANCING 60 MILLION OF WHICH WOULD BE USED TO PURCHASE A PARTNERSHIP INTEREST IN CERTAIN PROPERTIES LEASED TO GREENERY BY HEALTH & REHABILITATION PROPERTIES TRUST A REAL ESTATE INVESTMENT TRUST BOTH GREENERY AND HEALTH & REHABILITATION PROPERTIES ARE BASED IN NEWTON MASS THE ACQUISITION WOULD GIVE HORIZON A TOEHOLD IN NEW ENGLAND AND CONTINUE THE COMPANY'S EXPANSION INTO THE GROWING MARKET FOR SUBACUTE CARE SUBACUTE CARE INVOLVES MORE COMPLEX AND PROFITABLE CARE SUCH AS THE TREATMENT OF RESPIRATOR PATIENTS THAN THAT WHICH IS TRADITIONALLY OFFERED IN MOST NURSING HOMES STILL INVESTORS REACTED WITH SOME SKEPTICISM IN HEAVY COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY HORIZON STOCK FELL 175 TO 1450 WHILE GREENERY ROSE 875 CENTS TO 325 KNOWN PRIMARILY FOR THE CARE OF BRAININJURED PATIENTS GREENERY HAS FAILED TO EXPAND BEYOND ITS NEW ENGLAND BASE MOREOVER IT HAS BEEN HURT BY REGULATORY INVESTIGATIONS INTO OPERATIONS OF SIMILAR COMPANIES FOR ITS SECOND QUARTER ENDED MARCH 31 GREENERY REPORTED A NET LOSS OF 754000 OR NINE CENTS A SHARE COMPARED WITH NET INCOME OF 100000 OR ONE CENT A SHARE IN THE YEAREARLIER PERIOD REVENUE INCREASED 71 TO 481 MILLION FROM 281 MILLION IN CONTRAST HORIZON'S NET ROSE 37 TO 24 MILLION FROM 17 MILLION FOR THE FOURTH QUARTER ENDED MAY 31 REVENUE ROSE 65 TO 719 MILLION FROM 437 MILLION IN OUR MIND HORIZON IS GOING TO RUN THE FACILITIES A LOT BETTER SAID MARK BANTA AN INDUSTRY ANALYST WITH DEAN WITTER AND THERE ARE SUBSTANTIAL FINANCIAL GAINS IF THEY CAN ACCOMPLISH THAT AFTER THE ACQUISITION ABOUT 40 OF HORIZON'S TOTAL REVENUE WILL COME FROM HIGHMARGIN SPECIALTY OR SUBACUTE CARE COMPARED WITH ABOUT 27 NOW MEANWHILE HORIZON WHICH OPERATES 89 FACILITIES WITH ABOUT 9000 BEDS SAID IT PLANS TO EXPAND CERTAIN OPERATIONS INTO THE GREENERY FACILITIES PUT ITS OWN MANAGERS IN PLACE AND PERHAPS SELL SOME PROPERTIES UNDER TERMS OF THE MERGER GREENERY SHAREHOLDERS WOULD RECEIVE ONE NEWLY ISSUED HORIZON COMMON SHARE FOR EVERY FOUR GREENERY COMMON SHARES HELD GREENERY CURRENTLY HAS ABOUT 82 MILLION COMMON SHARES OUTSTANDING AND HORIZON HAS ABOUT 113 MILLION HORIZON WOULD ALSO ASSUME ABOUT 547 MILLION IN GREENERY DEBT 9308030176 930803 BUSINESS BRIEF INFINITY BROADCASTING CORP RADIO STATION OPERATOR POSTS SHARP RISE IN 2NDPERIOD NET INFINITY BROADCASTING CORP SAID SECONDQUARTER PROFIT JUMPED ON STRONGER REVENUE PARTLY BECAUSE OF ADVERTISING REVENUE GROWTH AT MOST OF INFINITY'S RADIO STATIONS AND THE PURCHASE OF FOUR STATIONS THE NEW YORKBASED COMPANY ALSO DECLARED A 3FOR1 STOCK SPLIT INFINITY CLASS A SHARES ROSE 3 OR 65 TO 49 IN NATIONAL OVERTHECOUNTER TRADING THE STOCK DIVIDEND IS PAYABLE AUG 16 TO STOCK OF RECORD AUG 9 INFINITY HAD ABOUT 185 MILLION SHARES OUTSTANDING AT THE END OF THE SECOND QUARTER 9308030175 930803 BUSINESS BRIEF SANTA FE PACIFIC CORP COSTS OF MIDWEST FLOODING ARE ESTIMATED AT 35 MILLION SANTA FE PACIFIC CORP SAID IT EXPECTS TO FACE COSTS OF AT LEAST 35 MILLION REFLECTING TRACK REPAIRS AND LOST FREIGHT BUSINESS FROM THE MIDWEST FLOODING THE RAILROAD HOLDING COMPANY ALSO SAID THE COSTS OF DETOURING ABOUT 200 SANTA FE FREIGHT TRAINS ON THE TRACKS OF OTHER RAILROADS WILL BE SIGNIFICANT SANTA FE'S MAIN LINE BETWEEN CHICAGO AND LOS ANGELES CONTINUES TO BE SHUT DOWN DUE TO SEVERE FLOODING IN MISSOURI BUT IS EXPECTED TO REOPEN TOMORROW BASED IN SCHAUMBURG ILL SANTA FE IS THE LATEST RAILROAD TO ESTIMATE THE COSTS INCURRED FROM THE MIDWEST FLOODS LAST MONTH UNION PACIFIC CORP SAID IT EXPECTS AS MUCH AS 30 MILLION IN EXTRA COSTS DUE TO THE FLOODING NORFOLK SOUTHERN CORP SAID YESTERDAY IT EXPECTS THE COSTS OF REPAIRING WASHEDOUT TRACK AND FACILITIES TO BE BETWEEN 12 MILLION AND 15 MILLION BUT A COMPANY SPOKESMAN SAID IT'S VERY DIFFICULT TO ESTIMATE LOST REVENUE BECAUSE IT ISN'T KNOWN HOW MUCH BUSINESS WILL BE REGAINED AFTER THE FLOODING ENDS 9308030174 930803 BUSINESS BRIEF CAPITAL RE CORP FIRM EXPECTS 2NDPERIOD NET AT HIGHER END' OF FORECASTS CAPITAL RE CORP EXPECTS SECONDQUARTER EARNINGS TO BE AT THE HIGHER END OF ESTIMATES OF BETWEEN 55 CENTS AND 60 CENTS A SHARE MICHAEL SATZ CHAIRMAN AND CHIEF EXECUTIVE SAID CAPITAL RE BASED IN NEW YORK IS THE LEADING REINSURER FOR THE FINANCIAL GUARANTEE INSURANCE INDUSTRY THAT BACKS MUNICIPAL AND ASSETBACKED SECURITIES THAT WAY ISSUERS CAN SELL TOPRATED DEBT EVEN THOUGH THEY THEMSELVES DO NOT CARRY THE TOP RATINGS THE COMPANY EXPECTS TO RELEASE ITS EARNINGS TODAY THE COMPANY IS EXPECTING SECONDQUARTER OPERATING INCOME BEFORE CAPITAL GAINS TO RISE 40 FROM THE YEAREARLIER 66 MILLION OR 46 CENTS A SHARE IN THE YEAREARLIER SECOND QUARTER INCLUDING CAPITAL GAINS THE COMPANY HAD NET INCOME OF 86 MILLION OR 60 CENTS A SHARE THE COMPANY EXPECTS TO REPORT THAT REVENUE ROSE BETWEEN 15 AND 20 FROM 16 MILLION LAST YEAR 9308030173 930803 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 3/8 HIGH 3 LOW 3 1/8 NEAR CLOSING BID 3 1/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 59 DAYS 312 60 TO 89 DAYS 315 90 TO 119 DAYS 317 120 TO 154 DAYS 330 155 TO 179 DAYS 332 180 TO 229 DAYS 340 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 316 30 DAYS 318 60 DAYS 322 90 DAYS CERTIFICATES OF DEPOSIT 261 ONE MONTH 265 TWO MONTHS 272 THREE MONTHS 293 SIX MONTHS 318 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 310 ONE MONTH 315 THREE MONTHS 340 SIX MONTHS BANKERS ACCEPTANCES 307 30 DAYS 309 60 DAYS 311 90 DAYS 314 120 DAYS 325 150 DAYS 328 180 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 686 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 703 60 DAYS 711 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 9308030172 930803 BUSINESS BRIEF HALLIBURTON ENDS BID TO SELL INSURANCE UNIT POSTS SHARP PROFIT RISE DALLAS HALLIBURTON CO SAID A YEARLONG EFFORT TO SELL ITS INSURANCE UNIT WAS UNSUCCESSFUL AND IT WILL NOW FOCUS ON IMPROVING THE UNIT'S FINANCIAL PERFORMANCE THE COMPANY ALSO REPORTED A 64 INCREASE IN SECONDQUARTER NET INCOME A YEAR AGO THE OILFIELD SERVICES CONCERN PUT ITS HIGHLANDS INSURANCE CO UNIT ON THE BLOCK SAYING IT PLANNED TO DIVEST ITSELF OF THE SUBSIDIARY AND CONCENTRATE ON ITS ENERGY BUSINESSES HIGHLANDS BASED IN HOUSTON SPECIALIZES IN WRITING COMMERCIAL PROPERTY AND CASUALTY AND WORKERS' COMPENSATION INSURANCE THE INSURANCE UNIT HAD 1992 REVENUE OF 3169 MILLION BUT HALLIBURTON SAID IT RECENTLY CONCLUDED ITS EFFORTS TO SELL HIGHLANDS WITHOUT SECURING A SATISFACTORY TRANSACTION IT SAID IT MIGHT ATTEMPT TO SELL HIGHLANDS AGAIN LATER BUT CURRENT MARKET CONDITIONS IN THE INSURANCE INDUSTRY AND OTHER FACTORS DO NOT PERMIT THE ACCOMPLISHMENT OF THE ORIGINAL OBJECTIVE IN THE NEAR TERM HALLIBURTON HAD HIRED SMITH BARNEY HARRIS UPHAM & CO TO FIND A BUYER HALLIBURTON POSTED SECONDQUARTER NET INCOME OF 229 MILLION OR 20 CENTS A SHARE UP FROM 14 MILLION OR 13 CENTS A SHARE A YEAR EARLIER PRIMARILY ON THE STRENGTH OF NATURALGAS EXPLORATION AND PRODUCTION AND INTERNATIONAL ENGINEERING AND CONSTRUCTION SERVICES INCOME REVENUE FOR THE QUARTER EASED TO 160 BILLION FROM 162 BILLION THE COMPANY SAID ITS 1992 RESULTS HAVE BEEN RESTATED TO REFLECT CHANGES IN ACCOUNTING FOR RETIREMENT BENEFITS AND INCOME TAXES IN LATE NEW YORK STOCK EXCHANGE TRADING HALLIBURTON WAS QUOTED AT 4025 UP 625 CENTS 9308030171 930803 WHAT'S NEWS BUSINESS AND FINANCE CONGRESSIONAL LEADERS AND THE CLINTON ADMINISTRATION CLOSED IN ON A DEFICITREDUCTION COMPROMISE BUT IT ISN'T CLEAR THEY HAVE THE VOTES TO PASS IT EVEN AS SOME CONCESSIONS WERE MADE TO WIN THE VOTES OF WAVERING LAWMAKERS OTHER LAWMAKERS THREATENED TO BOLT OVER SOME ISSUES THE MAJOR TAX AND MEDICARE SPENDING PORTIONS OF THE PACKAGE HAVE BEEN DECIDED AND ONLY MINOR ISSUES REMAIN CONGRESS'S SCALEDBACK VERSION OF THE ADMINISTRATION'S INVESTMENT PLAN LEANS TOWARD TRADITIONAL DEMOCRATIC SOCIAL PROGRAMS AT THE EXPENSE OF MORE PROBUSINESS INITIATIVES EUROPEAN CURRENCIES FELL LESS THAN EXPECTED AS MAJOR CENTRAL BANKS FAILED TO LOWER INTEREST RATES DESPITE A NEWLY LOOSENED MONETARY SYSTEM SEVERAL EUROPEAN STOCK AND BOND MARKETS ROSE SOME VERY STRONGLY ON SPECULATION THAT RATES WILL SOON FALL SPURRING AN ECONOMIC RECOVERY IN EUROPE SOME US COMPANIES EXPECT TO BE INSULATED FROM EUROPE'S TUMULT BY CURRENCY HEDGING AND OTHER STRATEGIES BUT OTHERS ARE TAKING ADDITIONAL STEPS TO PROTECT THEIR BUSINESSES FOOD LION AGREED TO PAY 16 MILLION IN THE LARGEST SETTLEMENT EVER REACHED BY A PRIVATE EMPLOYER OVER WAGE AND HOUR VIOLATIONS THE LABOR DEPARTMENT IS EXPECTED TO ANNOUNCE TODAY THE MANUFACTURING SECTOR CONTRACTED FOR THE SECOND CONSECUTIVE MONTH IN JULY ACCORDING TO A SURVEY OF PURCHASING EXECUTIVES SUGGESTING A SLOW ECONOMIC RECOVERY LIES AHEAD OPEC MEMBERS ARE PRODUCING MORE OIL DESPITE AN OVERSUPPLIED MARKET AS A RESULT PRICES ARE EXPECTED TO REMAIN WEAK AT LEAST UNTIL THE FOURTH QUARTER WHEN A SEASONAL INCREASE IN PETROLEUM DEMAND NORMALLY OCCURS PRECIOUS METALS PRICES FLUCTUATED WILDLY IN REACTION TO TURMOIL IN WORLD CURRENCY MARKETS GOLD FUTURES ROSE SHARPLY BEFORE RETREATING TO SETTLE AT 41020 AN OUNCE DOWN 110 KABI PHARMACIA AGREED TO CHANGE ITS SALES PROMOTION AND ADS TARGETED TO DOCTORS IN A CASE THE FDA SAID DEMONSTRATES DRUG FIRMS' USE OF MISLEADING CLAIMS THAT HELP INFLATE HEALTHCARE COSTS AND POSSIBLY HARM PATIENTS INTEL AND UNISYS ARE TEAMING UP IN THE RACE TO DEVELOP A FORM OF HIGHPERFORMANCE COMPUTING POWER KNOWN AS PARALLEL PROCESSING FOR THE COMMERCIAL MARKET INDUSTRY OFFICIALS SAID SUNBEAMOSTER NAMED ROGER SCHIPKE CHIEF EXECUTIVE OFFICER OF THE CONSUMERPRODUCTS COMPANY THE FORMER HEAD OF GE'S APPLIANCE DIVISION FACES DECIMATED MANAGEMENT RANKS TOUGH COMPETITORS AND RESERVES RECENTLY DEPLETED BY A LEGAL DISPUTE THE WHITE HOUSE IS HOLDING MEETINGS WITH UNION LEADERS IN AN EFFORT TO SOFTEN OPPOSITION TO THE NORTH AMERICAN FREE TRADE AGREEMENT BUT THE TALKS APPEAR TO HAVE HAD LITTLE EFFECT ON UNIONS' STRONG DISLIKE FOR THE PACT GM PRESIDENT SMITH REFUSED TO DISCUSS WITH VW CHAIRMAN PIECH A CEASEFIRE IN THE INDUSTRIAL ESPIONAGE CONTROVERSY BETWEEN THE TWO CAR MAKERS UNTIL PIECH RETRACTS CHARGES OF EVIDENCE TAMPERING LEVELED AGAINST GM CORESTATES FINANCIAL AGREED TO ACQUIRE NEW JERSEY'S CONSTELLATION BANCORP FOR ABOUT 320 MILLION CORESTATES BEAT OUT BANK OF NEW YORK AND FIRST FIDELITY PEOPLE CLOSE TO THE DEAL SAY BONDS LEHMAN BROTHERS TREASURY INDEX 537206 UP 322 COMMODITIES OIL 1797 A BARREL UP NINE CENTS DOW JONES FUTURES INDEX 13192 UP 079 SPOT INDEX 12646 UP 158 DOLLAR 10441 YEN OFF 039 17093 MARKS OFF 00332 9308030170 930803 WHO'S NEWS GENERAL INSTRUMENT CORP GENERAL INSTRUMENT CORP CHICAGO THIS CABLE SATELLITE AND BROADCASTING TECHNOLOGY CONCERN NAMED LEE R KEENAN 45 YEARS OLD AS VICE PRESIDENT PERSONNEL THE POSITION IS NEW MR KEENAN WAS PREVIOUSLY DIRECTOR HUMAN RESOURCES HE WILL RETAIN THOSE DUTIES 9308030169 930803 CAT FANCIERS ARE URGED TO READ MORE THAN THE FIRST 2 PARAGRAPHS BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL POOR FIDO HOME ALONE AGAIN TO PERK UP YOUR DOG'S DULL DAYS GET HIM CATCH CAT THE VIDEO GAME FEATURED IN THE CUTTING EDGE CATALOG CATCH CAT OFFERS DOGS 18 CHASES BEGINNING WITH THE LAWN SEQUENCE AND CULMINATING IN THE DOGHOUSE FELINE DEATHTRAP THE CAPTION READS WITH A PAWASSISTED KEYBOARD AND SLOBBERRESISTANT SCREEN THE GAME'S LEVELS RANGE FROM IRISH SETTER MODE FOR LESS INTELLIGENT DOGS TO TERRIER & MUTT FOR STREETSMART CANINES BUT PUT AWAY YOUR CREDIT CARD THE CUTTING EDGE CATALOG IS JUST A SPOOF OF THAT TOY CHEST OF THE RICH SHARPER IMAGE THE GAG CATALOG FOR THE MAN WOMAN AND CHILD WHO HAS EVERYTHING BUT WANTS MORE IS THE BRAINCHILD OF SEATTLEBASED ANDY MAYER DOUG MAYER AND JIM BECKER SHARPER IMAGE DOESN'T MIND IT SELLS THE CUTTING EDGE FOR 995 IN A THIRD OF ITS 73 STORES IT'S THE 718TH BESTSELLING ITEM OF ABOUT 1500 BETWEEN THE CAT PHONE AND A MODEL BMW SAYS SIDNEY KLEVATT SENIOR VICE PRESIDENT MARKETING THAT'S A BIT WORSE THAN MEDIOCRE THE CUTTING EDGE PUBLISHED BY THE MACMILLAN INC UNIT OF MAXWELL COMMUNICATION CORP PARODIES THE HIGHTECH POTPOURRI OF SHARPER IMAGE GADGETS INCLUDE THE DEAD PHONE A DIRECT LINE TO THE DEARLY DEPARTED AND THE HOTWALKER TREADMILL WHICH HAS A UNIQUE REARMOUNTED PROPANE TANK WITH A 300DEGREE FLAME THAT SENDS A NOTSOSUBTLE MESSAGE TO ENCOURAGE A BRISK PACE ANDY MAYER SAYS NO ONE HAS TRIED TO ORDER ITEMS YET PARTLY BECAUSE OF THE CATALOG'S FALSE TOLLFREE NUMBERS SUCH AS 1800GETALIFE BUT HE BELIEVES SOME PRODUCTS SUCH AS MONET & ME MAY ONE DAY LAND IN STORES WHY JUST OWN A MASTERPIECE WHEN YOU CAN BE IN ONE THE CAPTION READS FOR A SLIGHTLY ALTERED MONET'S BRIDGE AT ARGENTEUIL IN WHICH YOU AND YOUR WIFE CAN BE SEEN OUT FOR A SUNDAY CRUISE IN YOUR NEW POWERBOAT SOME MIGHT CONSIDER THAT A TAD TACKY BUT AT LEAST ONE ARTGALLERY OWNER IN NEW YORK ISN'T OFFENDED RENAISSANCE ARTISTS USED TO PUT THEIR PATRONS IN PAINTINGS ALL THE TIME SAYS STUART LEVY THE AVERAGE PERSON COULD FEEL LIKE A MEDICI PARODY PRICES RUN FROM 6995 FOR BIG CHEW GLOBS OF GUM CERTIFIED TO HAVE SPENT AT LEAST THREE INNINGS IN THE MOUTH OF A BASEBALL ALLSTAR TO 775000 FOR A DNA SCANNER THAT ASCERTAINS FOR THE TRULY PARANOID WHETHER HE OR SHE HAD BEEN SWAPPED FOR ANOTHER BABY IN THE HOSPITAL 9308030168 930803 EUROPE'S CURRENCY CRISIS MARCHING TO A DIFFERENT DRUMMER BRITAIN RATIFIES MAASTRICHT TREATY BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON BRITAIN HAS FINALLY RATIFIED THE MAASTRICHT TREATY ON EUROPEAN UNION JUST AS THE NEAR BREAKDOWN OF EUROPE'S EXCHANGERATE MECHANISM MAY HAVE ROBBED THE TREATY OF ONE OF ITS MAIN OBJECTIVES PRIME MINISTER JOHN MAJOR MOVED SWIFTLY TO RATIFY THE TREATY ONLY HOURS AFTER A DECISION BY LORD REESMOGG THE FORMER EDITOR OF THE TIMES NEWSPAPER NOT TO PURSUE A LEGAL BATTLE AGAINST IT BRITAIN'S AMBASSADOR TO ITALY SIR PATRICK FAIRWEATHER DEPOSITED BRITAIN'S INSTRUMENT OF RATIFICATION AT THE ITALIAN MINISTRY OF FOREIGN AFFAIRS IN ROME AS STIPULATED UNDER THE FORMALITIES GOVERNING THE TREATY NOW THE ONLY COUNTRY THAT HASN'T RATIFIED THE TREATY IS GERMANY WHERE A LAWSUIT ALLEGING CONSTITUTIONAL IMPROPRIETIES IS STILL UNDER CONSIDERATION BUT WITH EUROPEAN CURRENCIES IN TURMOIL FOLLOWING THE DECISION BY EUROPEAN COMMUNITY FINANCE MINISTERS TO LOOSEN THE CONTROLS LINKING CURRENCIES WITHIN THE ERM THERE ARE DOUBTS AS TO WHETHER THE TREATY HAS ANY PRACTICAL FUTURE ACCORDING TO WILLIAM CASH A CONSERVATIVE MEMBER OF PARLIAMENT AND ONE OF BRITAIN'S LEADING CAMPAIGNERS AGAINST MAASTRICHT THE ENTIRE HEART OF THE TREATY WAS TORN OUT WITH THE COLLAPSE OF THE ERM DESPITE BRITAIN'S RATIFICATION HE SAID THE TREATY WAS TOTALLY UNWORKABLE AND DOOMED TO FAILURE EARLIER EC FINANCE MINISTERS REACTED TO LAST WEEK'S ONSLAUGHT ON THE FRENCH FRANC BY WIDENING THE FLUCTUATION BANDS IN THE ERM CURRENCY GRID TO 15 FROM 225 EITHER WAY THE ACTION WAS INTERPRETED BY MAASTRICHT SUPPORTERS AND OPPONENTS ALIKE AS SIGNALING THE END OF THE ERM AND PLANS FOR A SINGLE EUROPEAN CURRENCY SPEAKING ON BBC RADIO FORMER CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT PROCLAIMED THE ERM DEAD IN ALL BUT NAME WITH THE PROSPECTS FOR A SINGLE CURRENCY OUT OF THE WINDOW AND THE TREATY A BIT OF A FOSSIL MR MAJOR SAID WHAT HAD HAPPENED VINDICATED BRITAIN'S ACTION IN WITHDRAWING STERLING FROM THE ERM LAST SEPTEMBER ADDING THAT THE TIMETABLE FOR A SINGLE CURRENCY WAS NOW TOTALLY UNREALISTIC LORD REESMOGG IN A BID TO PREVENT BRITISH RATIFICATION OF THE MAASTRICHT TREATY LAST WEEK LAUNCHED A LAWSUIT IN ENGLAND'S HIGH COURT CHARGING THAT THE GOVERNMENT HADN'T OBSERVED NECESSARY CONSTITUTIONAL PROCEDURES FRIDAY THREE HIGH COURT JUDGES REJECTED HIS SUIT AFTER CONSIDERING THEIR VERDICT OVER THE WEEKEND LORD REESMOGG SAID HE HAD DECIDED AGAINST PURSUING AN APPEAL ACCORDING TO A SPOKESMAN LORD REESMOGG SAW NO POINT IN PURSUING THE LITIGATION IN PART HE SAID THAT WAS BECAUSE THE JUDGES HAD ACCEPTED SOME KEY POINTS OF HIS CONSTITUTIONAL ARGUMENT BUT IT WAS ALSO A RESULT OF TURMOIL HITTING THE ERM WHICH REMOVES EFFECTIVELY ONE OF THE KEY PILLARS OF MAASTRICHT HE SAID IN THEIR RULING THE JUDGES ORDERED LORD REESMOGG TO BEAR THE SUBSTANTIAL COSTS OF THE TRIAL THEY ALSO AFFIRMED HOWEVER THAT RATIFICATION OF THE TREATY WOULDN'T MEAN ANY ABANDONMENT OF PARLIAMENT'S POWERS TO DECIDE BRITAIN'S FOREIGN AFFAIRS OR DEFENSE POLICIES ACCORDING TO LORD REESMOGG THAT MEANT THAT THE SECTION IN THE TREATY DEALING WITH SUCH ISSUES WAS TO BE READ ONLY AS A STATEMENT OF COOPERATIVE INTENTIONS UNDER SUCH CONDITIONS HE ADDED THERE IS COMPLETE FREEDOM IN BRITISH LAW AND EUROPEAN LAW TO WITHDRAW FROM IT OR FROM ANY OBLIGATIONS UNDER IT MR MAJOR'S FIGHT TO WIN PARLIAMENTARY APPROVAL FOR RATIFICATION OF THE MAASTRICHT TREATY IN THE FACE OF DETERMINED OPPOSITION FROM A HARD CORE OF TORY EUROREBELS DOMINATED BRITAIN'S POLITICAL SCENE FOR MOST OF THE PAST 12 MONTHS BUT IT MAY WELL PROVE A PYRRHIC VICTORY AS MR MAJOR'S POSITION HAS BEEN SEVERELY WEAKENED BY THE DIVISIONS MAASTRICHT HAS CREATED WITHIN HIS TORY PARTY 9308030167 930803 WHO'S NEWS INTERNATIONAL SPECIALTY PRODUCTS INC INTERNATIONAL SPECIALTY PRODUCTS INC WAYNE NJ MARK A BUCKSTEIN 54 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT GENERAL COUNSEL SECRETARY AND A DIRECTOR OF THIS MAKER OF SPECIALTY CHEMICAL PRODUCTS MINERAL AND FILTER PRODUCTS AND ADVANCED MATERIALS HE WAS EXECUTIVE VICE PRESIDENT OF THE AMERICAN ARBITRATION ASSOCIATION HE SUCCEEDS BARRY SIMON WHO LEFT THE COMPANY IN APRIL 9308030166 930803 SPAR AEROSPACE GETS CONTRACT SPAR IS A MISSISSAUGA AEROSPACE COMPANY 9308030165 930803 INTERNATIONAL TAX CUT IN JAPAN GETS RULED OUT BY KEY LEADER BY CLAY CHANDLER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S ECONOMY SHOWS NEW SIGNS OF WEAKNESS BUT A KEY LEADER OF THE POLITICAL COALITION EXPECTED TO WIN CONTROL OF THE GOVERNMENT POURED COLD WATER ON CHANCES FOR INCOME TAX CUTS OR OTHER BOLD MOVES TO STIMULATE RECOVERY ANYTIME SOON ICHIRO OZAWA A FOUNDER OF THE CONSERVATIVE JAPAN RENEWAL PARTY SAID IT WILL BE IMPOSSIBLE FOR THE NEW GOVERNMENT TO AGREE ON A PLAN FOR LOWERING INCOME TAXES THIS YEAR HIS PARTY IS THE CORE OF A SEVENPARTY ALLIANCE THAT IS VIRTUALLY ASSURED OF ASSUMING POWER FROM THE LIBERAL DEMOCRATIC PARTY WHEN PARLIAMENT CONVENES LATER THIS WEEK MR OZAWA'S CAUTIOUS ASSESSMENT WON'T PLEASE THE US GOVERNMENT FOR MONTHS CLINTON ADMINISTRATION OFFICIALS HAVE URGED JAPAN TO CUT INCOME TAXES BOOST FISCAL SPENDING AND TAKE OTHER MEASURES TO REVIVE THE NATION'S FALTERING ECONOMY MANY IN WASHINGTON SAY A HEALTHY JAPANESE ECONOMY IS NECESSARY TO CUT JAPAN'S HUGE TRADE SURPLUS AND TO KICK START THE WORLD ECONOMY THEY HAD HOPED TOKYO'S NEW ADMINISTRATION WOULD BE MORE RECEPTIVE TO THEIR PLEAS BUT MR OZAWA WIDELY VIEWED AS THE COALITION'S LEADING STRATEGIST EXPLAINED IT WOULD BE A SLOPPY HALFHEARTED AND CHILDISH DECEPTION FOR THE NEW GOVERNMENT TO CUT INCOME TAXES WITHOUT TAKING IN REVENUE ELSEWHERE BY REVAMPING THE NATION'S TAX CODE HE PREDICTED JAPAN'S LEGISLATORS WON'T BE READY TO CONSIDER BROAD TAX REFORM MEASURES UNTIL MID1994 AT THE EARLIEST JAPAN'S ECONOMY MEANWHILE CONTINUES TO SEND OUT DISTRESS SIGNALS AND MORE DANGER LOOMS VEHICLE SALES IN JULY PLUNGED 10 FROM A YEAR EARLIER THE JAPAN AUTOMOBILE DEALERS' ASSOCIATION SAID IT WAS THE FOURTH CONSECUTIVE MONTH OF DOUBLEDIGIT YEARONYEAR DECLINES FOR CAR SALES JAPANESE EXPORTS OF VIDEOTAPE RECORDERS IN JUNE FELL 15 FROM LAST YEAR THE JAPANESE ELECTRONICS INDUSTRY TRADE GROUP SAID THE STRENGTHENING YEN CONTINUES TO HURT JAPAN'S BLUECHIP MANUFACTURERS BY UNDERMINING THE COMPETITIVENESS OF EXPORTS THE YEN REACHED A RECORD HIGH AGAINST THE DOLLAR IN TOKYO TRADING YESTERDAY APPRECIATING 099 YEN TO CLOSE AT 10461 YEN TO THE DOLLAR TRADERS EXPECT IT TO RISE EVEN MORE THIS WEEK A STRONGER YEN RAISES THE RELATIVE PRICE OF GOODS MADE IN JAPAN MANY PRIVATE ECONOMISTS THINK THAT WITHOUT ANY ADDITIONAL STIMULUS JAPAN'S ECONOMY WILL EXPAND AT A DISMAL RATE OF AROUND 15 OR LESS IN THE YEAR TO MARCH 31 1994 AND WILL STRUGGLE TO RESUME A 3 GROWTH RATE IN THE FOLLOWING YEAR MR OZAWA HOWEVER DISPUTED THE SUGGESTION THAT GOVERNMENT ACTIONS CAN REMEDY JAPAN'S ECONOMIC ILLS THE CURRENT DOWNTURN HE ARGUED IS THE RESULT OF RECKLESS OVERINVESTMENT BY THE NATION'S BIG CORPORATIONS AND WON'T IMPROVE UNTIL COMPANIES RESTRUCTURE THAT CHANGE HE SAID WILL TAKE YEARS AND WON'T BE HELPED MUCH BY ADDITIONAL FISCAL PROGRAMS MR OZAWA AN LDP DEFECTOR DOESN'T NECESSARILY SPEAK FOR THE NEW GOVERNMENT DURING ELECTIONS LAST MONTH LEADERS OF SEVERAL PARTIES JOINING THE ANTILDP COALITION PROMISED TO PRESS FOR A MULTITRILLION YEN INCOME TAX CUT EARLIER THIS WEEK SOME REITERATED THAT CALL IT ISN'T CLEAR WHAT MORIHIRO HOSOKAWA THE COALITION'S CHOICE FOR PRIME MINISTER THINKS BUT MR OZAWA AND HIS PARTISANS ARE CONSIDERED THE MOST POWERFUL MEMBERS OF THE ALLIANCE IN THIS TIME OF POLITICAL UNCERTAINTY THE LDP HAS RUN THE GOVERNMENT FOR 38 YEARS THE TOP PRIORITY FOR THE NEW ALLIANCE ISN'T NECESSARILY BOOSTING THE ECONOMY BUT PERHAPS REASSURING THE STILLSTRONG BUREAUCRACY JAPAN'S FISCALLY CONSERVATIVE FINANCE MINISTRY IS OPPOSED TO TAX CUTS I THINK THEY'RE PLAYING THEIR CARDS QUITE WELL JESPER KOLL AN ECONOMIST AT SG WARBURG SECURITIES JAPAN INC SAID OF THE COALITION THE LAST THING THEY WANT TO DO IS GET INTO A CONFRONTATION WITH THE FINANCE MINISTRY IF LEADERS OF THE NEW GOVERNMENT WANT TO STAY IN POWER MR KOLL CONTENDS THEY MUST SHOW THAT THEY CAN GET ALONG WITH THE BUREAUCRATS IN RECENT WEEKS POLITICAL ANALYSTS AND EVEN MANY COALITION MEMBERS HAVE SAID THAT THE ANTILDP ALLIANCE LIKELY WILL HOLD TOGETHER FOR ONLY A FEW MONTHS MR OZAWA DISMISSED THOSE SUGGESTIONS HE PREDICTED THE GROUP WILL REMAIN IN POWER UNTIL THE MIDDLE OF NEXT YEAR AND POSSIBLY MUCH LONGER MR HOSOKAWA IS CURRENTLY TRYING TO PICK THE CABINET FOR THAT GOVERNMENT MR HOSOKAWA YESTERDAY SAID HE OFFERED A POST TO MR OZAWA BUT MR OZAWA DECLINED DESPITE HIS OBVIOUS POWER MR OZAWA MADE IT CLEAR HE WOULD RATHER REMAIN IN THE BACKGROUND 9308030164 930803 WHO'S NEWS SPAGHETTI WAREHOUSE INC SPAGHETTI WAREHOUSE INC GARLAND TEXAS HG CARRINGTON JR 38 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS RESTAURANT CHAIN MR CARRINGTON FORMERLY A SENIOR VICE PRESIDENT OF NATIONSBANK SUCCEEDS WILLIAM B REA JR WHO IS LEAVING SPAGHETTI WAREHOUSE TO JOIN A CLOSELY HELD COMPANY MR REA 48 HAS BEEN VICE PRESIDENT OF FINANCE AND A DIRECTOR OF SPAGHETTI WAREHOUSE SINCE 1984 HE WILL CONTINUE TO SERVE AS A BOARD MEMBER 9308030163 930803 WHO'S NEWS OLSTEN CORP OLSTEN CORP WESTBURY NY THIS PERSONNEL SERVICES COMPANY NAMED THREE NEW DIRECTORS MIRIAM OLSTEN LONG ISLAND NY WIFE OF THE COMPANY'S FOUNDER THE LATE WILLIAM OLSTEN ANTHONY H REEVES 52 LONDON FORMER CHIEF EXECUTIVE OFFICER OF LIFETIME CORP AND RAYMOND S TROUBH 67 NEW YORK A FORMER DIRECTOR OF LIFETIME WHICH OLSTEN ACQUIRED LAST WEEK THE MOVE INCREASES THE BOARD TO EIGHT INCLUDING TWO NEW SEATS MRS OLSTEN FILLS A VACANCY 9308030162 930803 WHO'S NEWS VALMONT INDUSTRIES INC VALMONT INDUSTRIES INC VALLEY NEB MOGENS C BAY 44 YEARS OLD FORMERLY PRESIDENT AND CHIEF OPERATING OFFICER OF THE IRRIGATION PRODUCTS DIVISION WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS MAKER OF IRRIGATION EQUIPMENT POLE STRUCTURES LIGHTING BALLASTS AND CONTROLS AND STEEL TUBING HE SUCCEEDS WILLIAM F WELSH II 51 WHO RESIGNED FOR PERSONAL REASONS AND TO PURSUE OTHER INTERESTS 9308030161 930803 SANIFILL TO BUILD LANDFILL HOUSTON SANIFILL INC SAID IT RECEIVED A PERMIT FOR A MUNICIPAL SOLID WASTE LANDFILL 40 MILES NORTH OF ATLANTA THE ENVIRONMENTAL SERVICES CONCERN SAID CONSTRUCTION WILL BEGIN SOON ON A FACILITY IT EXPECTS TO OPEN THERE BY MARCH 1994 SEPARATELY SANIFILL SAID IT COMPLETED THE PRIVATE PLACEMENT OF 30 MILLION OF SENIOR NOTES WITH AN INSTITUTIONAL LENDER PROCEEDS WERE USED TO REDUCE BANK DEBT SANIFILL SAID 9308030160 930803 WHO'S NEWS DIED JESSE ARRAMBIDE 67 CHAIRMAN AND FOUNDER OF PANCHO'S MEXICAN BUFFET INC SATURDAY IN NEW MEXICO AFTER A HEART ATTACK 9308030159 930803 LEISURE & ARTS CORPORATE AMERICA VS CONGRESS IN BRIDGE BY MICHAEL LEDEEN WASHINGTON ON THE EVE OF THE AMERICAN CONTRACT BRIDGE LEAGUE'S SUMMER NATIONAL CHAMPIONSHIPS HERE A TEAM OF CHIEF EXECUTIVE OFFICERS PLAYED AN EXHIBITION MATCH AGAINST A TEAM REPRESENTING CONGRESS THE CONTEST BIDS FAIR TO BECOME AN INSTITUTION FOR THIS IS THE THIRD CONSECUTIVE YEAR IT HAS SERVED AS A SCENE SETTER FOR THE MAIN EVENTS THE FIRST TWO CONTESTS PRODUCED EASY WINS FOR THE CORPORATE AMERICA TEAM BUT THIS YEAR THE CONGRESS TEAM SHOWED UP WITH SOME NEW FACES AND A COACH NAMED BUCK BUCHANAN ALAS NOT THE FABLED DEFENSIVE LINEMAN FROM KANSAS CITY THE STANDARD SIZE OF A BRIDGE TEAM IS SIX FOUR PLAYING AND TWO RESTING AT ANY GIVEN MOMENT CONGRESS PRODUCED A NINEMAN UNIT SENS HANK BROWN JIM JEFFORDS AND BOB PACKWOOD AND REPS JIM LEACH ROGER ZION AND JIM BUNNING REPUBLICANS ALL JUDGE MEL WELLS FROM THE NATIONAL LABOR RELATIONS BOARD AND FORMER REPS ARLAN STRANGELAND AND BOB KASTENMEIER THE TOKEN DEMOCRAT CORPORATE AMERICA FIELDED INVESTMENT LEGEND WARREN BUFFETT AND HIS FAVORITE PARTNER NEW YORK LAWYER GEORGE GILLESPIE ALONG WITH CALIFORNIA BUSINESSWOMAN RITA SHUGART INVESTMENT BANKER NICK NICKELL AND JIMMY CAYNE AND WARREN SPECTER FROM BEAR STEARNS & CO THE MATCH WAS STAGED FOR THE BENEFIT OF CHARITY THE ACBL EDUCATIONAL FOUNDATION AND THE NEW YORK LEAGUE FOR THE HARD OF HRING AND WITNESSED BY 30 OR SO KIBITZERS INCLUDING MEMBERS OF THE PRESS AT THE CAPITOL HILL CLUB ON THE AFTERNOON OF JULY 22 CORPORATE AMERICA WAS A HEAVY FAVORITE BECAUSE MESSRS BUFFETT AND GILLESPIE ARE AN EXPERIENCED PARTNERSHIP MR CAYNE IS A PROVEN SUPERSTAR MR NICKELL IS A TOURNAMENTHARDENED EXPERT MR SPECTER WAS THE COUNTRY'S LEADING JUNIOR PLAYER A FEW YEARS BACK AND MS SHUGART IS A REGULAR PLAYER WITH TOURNAMENT EXPERIENCE CONGRESS HAD NO ONE WITH ANY TOURNAMENT SUCCESSES INDEED PRESIDENT EISENHOWER SEEMS TO HAVE BEEN THE LAST HIGH GOVERNMENT OFFICIAL WITH A PROPER APPRECIATION OF AND REAL SKILL AT BRIDGE AND NO REGULAR PARTNERSHIP THE ONLY HOPE FOR A DECIDEDLY WEAKER TEAM TO WIN IS TO HAVE SWINGY DEALS WHERE LUCK CAN OVERWHELM SUPERIOR SKILL AND THERE WERE PLENTY OF THESE PUSHY GAMES MADE MORE OFTEN THAN NOT AND SEVERAL OF THE HANDS WERE NOT ONLY IDIOTPROOF BUT ACTUALLY REWARDED ECCENTRIC LINES OF PLAY MR KASTENMEIER WHO LEARNED THE GAME IN THE RATHSKELLER OF THE STUDENT UNION AT THE UNIVERSITY OF WISCONSIN IN MADISON THE SAME WONDERFUL ROOM WHERE I LEARNED BRIDGE DURING MY GRADUATESCHOOL YEARS GUESSED EVERY BAD TRUMP DIVISION FOUND EVERY MISSING QUEEN AND BID CONSISTENTLY WELL BUT THE REAL CONGRESS STAR WAS JUDGE WELLS WHO PLAYED A SERIES OF VERY DIFFICULT CONTRACTS AND BROUGHT MOST OF THEM HOME MOREOVER HE WAS THE ONLY CONGRESS PLAYER WITH HIGHLEVEL REPARTEE ONE CONGRESS PLAYER ANNOUNCED EAST IS THE DEALER AND HE PASSES REFERRING TO HIMSELF IN THE THIRD PERSON CONGRESS TOOK AN EARLY LEAD WITH CORPORATE AMERICA GNAWING AT IT FOR THE REST OF THE AFTERNOON WITH ONE HAND LEFT IN THE 25HAND MATCH CONGRESS WAS NARROWLY AHEAD AND HAND 25 SEEMED TO BE A ROUTINE FOURSPADE HAND EASY TO BID AND EASY TO MAKE WHILE MR CAYNE AND MS SHUGART SCORED IT UP IN ONE ROOM CONGRESS HAD ONE OF ITS FEW DISASTERS ONE PLAYER MADE A BID HE THOUGHT WAS FORCING BUT HIS PARTNER MISUNDERSTOOD AND THEY LANGUISHED IN A PARTSCORE PERMITTING CORPORATE AMERICA TO SNEAK THROUGH WITH A NARROW VICTORY IT'S TEMPTING TO TRY TO DRAW POLITICAL CONCLUSIONS FROM THE INABILITY OF CONGRESS TO DEFEAT CORPORATE AMERICA AT THE BRIDGE TABLE BUT THESE BRIDGEPLAYING POLITICIANS ARE HARDLY ANTIBUSINESS THE REAL EXPLANATION IS SIMPLE ENOUGH CORPORATE AMERICA HAS BETTER PLAYERS AND CONGRESS'S ONLY CHANCE IS TO FIND MIRACLE HANDS AND HOPE ITS OPPONENTS GUESS WRONG YET IT DID SEEM ONLY FITTING THAT THIS YEAR WITH VICTORY WITHIN ITS GRASP THE CONGRESS TEAM LOST AT THE 11TH HOUR BECAUSE OF A FAILURE OF COMMUNICATION MR LEDEEN IS A RESIDENT SCHOLAR AT AMERICAN ENTERPRISE INSTITUTE 9308030158 930803 TERADYNE GETS GERMAN CONTRACT BOSTON TERADYNE INC SAID IT WAS AWARDED AN EXCLUSIVE CONTRACT VALUED AT ABOUT 63 MILLION TO SUPPLY TELEPHONELINE TEST EQUIPMENT TO THE DEUTSCHE BUNDESPOST TELEKOM TERADYNE SAID THAT UNDER THE TERMS OF THE CONTRACT ITS 4TEL LINE TEST SYSTEMS WILL BE INSTALLED THROUGHOUT GERMANY TO SERVE THAT COUNTRY'S PHONE SYSTEM COMPRISING ABOUT 35 MILLION LINES THE PROJECT IS EXPECTED TO TAKE ABOUT 3 1/2 YEARS 9308030157 930803 GENESCO ENTERS CREDIT PACT NASHVILLE GENESCO INC THE APPAREL AND SHOE RETAILING AND MANUFACTURING COMPANY SAID IT ENTERED INTO A THREEYEAR 100 MILLION CREDIT PACT PROCEEDS WILL GO TOWARD GENERAL OPERATING EXPENSES AND FUNDING THE RECENT ACQUISITION OF LAMAR MANUFACTURING A PRIVATELY HELD APPAREL MAKER IN BOWDON GA THE COMPANY SAID THE AGREEMENT REPLACES GENESCO'S EXISTING 70 MILLION CREDIT ARRANGEMENTS 9308030156 930803 INTERNATIONAL CADBURY IN CHINA JOINT VENTURE LONDON UK CONFECTIONER CADBURY SCHWEPPES PLC ENTERED A 20 MILLION JOINT VENTURE 297 MILLION TO BUILD A CHOCOLATE FACTORY IN CHINA CADBURY SAID IT PLANS TO SET UP A PARTNERSHIP WITH THE BEIJING GENERAL CORP FOR AGRICULTURE INDUSTRY AND COMMERCE CADBURY WILL HAVE A 75 STAKE AND MANAGEMENT CONTROL IN THE VENTURE CALLED CADBURY BEIJING THE PLANT IS EXPECTED TO START PRODUCTION IN 1995 AND WILL HAVE INITIAL CAPACITY OF ABOUT 5000 TONS A YEAR 9308030155 930803 TEJAS POWER TO BUY 50 STAKE HOUSTON TEJAS POWER CORP SAID IT AGREED TO ACQUIRE PHIBRO ENERGY USA INC'S 50 STAKE IN A SOUTHEAST TEXAS NATURALGAS STORAGE SYSTEM TERMS WEREN'T DISCLOSED BUT TEJAS WHICH ALREADY OWNS THE OTHER HALF OF THE MOSS BLUFF GAS STORAGE SYSTEMS SAID IT WILL ACQUIRE PHIBRO'S STAKE IN EXCHANGE FOR AN UNDISCLOSED AMOUNT OF CASH A NOTE A STORAGE CONTRACT AND THE ASSUMPTION OF CERTAIN CONTRACT OBLIGATIONS TEJAS POWER SAID IT EXPECTS TO COMPLETE THE TRANSACTION BY OCT 1 PHIBRO ENERGY IS A UNIT OF SALOMON INC 9308030154 930803 ECONOMY SELLING RATE SLOWED IN MIDJULY FOR CARS DETROIT THE SELLING RATE FOR NORTH AMERICANBUILT CARS SLOWED IN MIDJULY FROM THE PREVIOUS 30DAY PERIOD AS GENERAL MOTORS CORP POSTED AN 8 JUMP IN ITS VEHICLE SALES IN THE JULY 1120 PERIOD FROM A YEAR EARLIER OTHER US AUTO MAKERS WITH THE EXCEPTION OF GM AND CHRYSLER CORP REPORTED SALES FOR THE JULY 1120 PERIOD LAST WEEK GM SAID IT DIDN'T RELEASE ITS SALES UNTIL YESTERDAY BECAUSE IT JUST RETURNED FROM A TWOWEEK COMPANYWIDE SHUTDOWN FOR VACATION CHRYSLER DOESN'T REPORT 10DAY VEHICLE SALES US AUTO MAKERS PLAN TO REPORT VEHICLE SALES FOR LATE JULY TOMORROW THE SEASONALLY ADJUSTED ANNUAL SALES RATE WAS 114 MILLION VEHICLES DOWN FROM A SELLING PACE OF 121 MILLION IN THE PREVIOUS 30DAY PERIOD BUT AHEAD OF THE 10 MILLION PACE A YEAR EARLIER SALES OF GM'S NORTH AMERICANBUILT CARS CLIMBED 99 DURING THE JULY 1120 PERIOD LARGELY BOOSTED BY A 79 INCREASE IN CADILLAC'S SALES A 236 JUMP IN SATURN'S SALES AND A 194 INCREASE IN OLDSMOBILE'S SALES GM'S DOMESTIC TRUCK SALES ROSE 57 DURING THE PERIOD